CURRENT INTERNATIONAL AFFAIRS

PAKISTAN
Law catches up with leadership
On December 16, 2009, the Supreme Court of Pakistan declared the National Reconciliation
Order (NRO) null and void. Lawyers termed the decision as a landmark judgement and
demanded that President Asif Ali Zardari step down from his post. The Court ruled that the
decree protecting Zardari and his allies against charges of corruption was illegal and against
the constitution.

The Supreme Court further ruled that all cases under investigation or pending enquiries and
which had either been withdrawn or where the investigations or enquiries had been terminated
on account of the NRO shall also stand revived and the relevant and competent authorities
shall proceed in the matter in accordance with law.

The NRO, issued by former President Pervez Musharraf, had scrapped all corruption cases
against politicians and bureaucrats filed between January 1986 and October 1999, on the
grounds that they may have been politically motivated. The ordinance had allowed Benazir
Bhutto and her husband Zardari to return to Pakistan.

In the first fallout of the Supreme Court ruling arrest warrants were issued against Pakistan
Interior Minister Rehman Malik and Defence Minister Chaudhry Ahmed Mukhtar on December
18, 2009. Both were also barred from going abroad on an official visit.

The National Accountability Bureau, Pakistan’s main anti-corruption agency, also banned 250
other officials from going abroad following the order.

INTERNATIONAL ECONOMY
Japan unveils new $81 billion stimulus plan
Japan’s government has unveiled $81 billion of new stimulus spending to keep the world’s
second-biggest economy from lurching back into recession.

Despite shrinking tax revenue, Prime Minister Yukio Hatoyama and his Cabinet agreed to 7.2
trillion yen ($80.6 billion) in new spending after days of negotiations with coalition partners.

The largesse underlines that the world’s biggest economies are still too fragile to get by
without government life support even as a recovery from the global recession takes shape. In
export-reliant Asia that’s partly because demand from Europe and the US is improving only
tepidly and efforts to reduce dependence on trade by boosting consumer spending will take
several years to fully bear fruit.

Japan also faces falling prices while brand-name exporters like Toyota Motor and Sony are
losing record amounts of money as a galloping yen adds to their woes.

ENVIRONMENT
A face-saver in Copenhagen
The Copenhagen Accord, the first global agreement of the 21st century to comprehensively
influence the flow and share of natural resources, was agreed upon by 26 most influential
countries in the wee hours of December 19, 2009, in the capital of Denmark. The US led the
pack of architects with the BASIC four—China, India, Brazil and South Africa (in that order)—
working as sometimes reluctant and sometimes willing, but always key partners in framing the
agreement.
The accord demands that increase in global temperatures be kept below 2 degrees on the basis
of equity. It requires global emissions as well as all national emissions to peak at a certain time
but is mindful of concerns of economic development. It asks industrialized countries, except
the US, to take emission cuts in future, but not necessarily under the Kyoto Protocol. It lays
out up to $30 billion of quick-start finance and $100 billion starting 2020, using all the routes of
transfer possible. It requires mitigation actions from developing countries for the first time to
be listed in an international agreement.

The rules of multilateral engagement got re-written as new alignments created a coterie of the
powerful that brokered deals in closed rooms: each working at the end to preserve, if not
improve its immediate economic status.

The pact they forged did cause heartburn as less powerful economies felt left out. Tuvalu and
Sudan said it was too weak, while Venezuela and Bolivia were upset because it had not been
negotiated in the open by all the 192 countries attending the UN Framework Convention on
Climate Change (UNFCCC) conference. The low-ambition deal was seen as a triumph of the US
which defied estimates to influence the outcome. But the negotiations also saw the Chinese
leveraging their clout in the resource-rich African continent, at a multilateral forum.

For India though, the Accord came out of hard bargaining lasting almost 20 hours among Heads
of governments of some of the most influential countries in the world. At the end of the day,
when the battle was over, India appeared to have ceded ground on some issues but blocked
intrusion on other red lines.

With stakes too high and the rich countries making abjectly clear that they were not playing to
the rules, but to change the rules altogether, the four emerging economies decided to instead
scratch up a low-ambition deal—a pact that would lower the pressure on them by lowering the
demands off the rich countries in parallel.

Finally the Copenhagen Accord take a morphed form of the US-backed schedules approach of
‘pledge and review’. The Copenhagen Accord is not what the US or Europe would have wanted
it to be, but it still contains some elements India would have to, at best, fight to defend again
in coming years or those that could be titled a lost battle by the end of the talks.

India, along with the other three emerging countries, fought hard and won the battle to retain
the reference principle of common but differentiated responsibility which creates the firewall
between the commitments of the rich countries and the actions of rest. India was also able to
wrest the creation of a green climate fund as well as fight back the attempt to force emission
cuts through the back-door.

But fighting a defensive battle, evidently wanting not to be labelled obstructionist by the US,
India, along with the other three partners loosened up its stance on some key issues. This
loosening of stance may not hit home immediately but it left the window open for growing
inequitable burden falling on India’s head to prevent climate change.

Major Highlights

• The final draft after the Copenhagen summit has agreed to cuts in emissions and hold
increase in global temp below 2°C.
• A proposal attached to the accord calls for a legally binding treaty by the end-2010.
• Developed countries to provide adequate financial resources and technology to support
developing countries. A goal of mobilizing $100 billion a year by 2020 to address the
needs of developing countries has been set.
 • Details of mitigation plans are included in separate annexure, one for developed
countries and one for voluntary pledges from developing countries. These are not
binding, and describe the current status of pledges—ranging from ‘under consideration’
for the United States to ‘adopted by legislation’ for the European Union.
• Emerging economies have been asked to monitor their efforts and report the results to
the United Nations every two years, with some international checks to meet
transparency concerns of West but ‘ensure that national sovereignty is respected’.
• The accord agrees to provide positive incentives to fund afforestation with financial
resources from developed world
• Carbon Markets are mentioned in the accord, but not in detail. The deal promises to
pursue various approaches, including opportunities to use markets to enhance the cost-
effectiveness and promote mitigations actions.

US takes giant leap on climate

The US Environmental Protection Agency has cleared the way for regulation of greenhouse
gases without any new laws being passed by Congress, reflecting President Barack Obama’s
commitment to act on climate change. The agency can now begin to make rules to regulate
emissions from vehicle tailpipes, power utilities and heavy industry under existing laws.

The EPA ruling applies to six gases scientists say contribute to global warming, including the
main one, carbon dioxide.

The UN climate summit finally passed the Copenhagen accord Saturday after two days of
intense negotiations and back-room manoeuvres. The accord, proposed by India and four other
countries, is now “operational”, a relieved UN chief, Ban Ki-Moon, said. The accord that is
meant to be a first step towards fighting the climate change that is affecting millions
worldwide was still held up for hours by four countries.

INTERNATIONAL RELATIONS
Siberia pipeline to reach APAC markets
Russian Prime Minister Vladimir Putin inaugurated the East-Siberia-Pacific Ocean oil pipeline on
December 28, 2009, which will enable Moscow to enter markets in Asia- Pacific region and
reduce dependency on European customers.

The project is designed to pump up to 1.6 million barrels (220,000 tonnes) of crude per day
from Siberia to Russia’s far east and then on to China and the Asia-Pacific region. The project’s
first leg envisages the construction of a 2,757-kilometre section with annual capacity of 220.5
million barrels of crude. It will link Taishet, in East Siberia’s Irkutsk Region, to Skovorodino, in
the Amur Region, in Russia’s far east. The second stretch will run 2,100 kilometres from
Skovorodino to the Pacific Ocean.

Currently the crude beyond Skovorodino goes by rail to China and the Pacific coast.

India moots trans-SAARC container train

India has floated a concept paper among the SAARC countries to start a container train on a
pilot basis, running from Bangladesh to Pakistan via India and Nepal, in a bid to give a big boost
intra-regional trade. The possible corridor for running the train is from Chittagong Port in
Bangladesh to Katihar in India, Birgunj in Nepal and to Lahore in Pakistan.

The proposal being considered could unify the entire region and will lead to a seamless,
border-less trade.

At present, India operates one passenger train each to Pakistan and Bangladesh for the benefit
of the citizens on the either side of the border. While the train to Pakistan operates between
Delhi and Lahore, the other to Bangladesh operates between Kolkata and Dhaka.
INTERNATIONAL TERRORISM
FBI indicts Headley for 26/11
David Coleman Headley aka Daood Gilani, has been formally charged for conspiracy in the
26/11 terror attacks in Mumbai in 2008. After an intensive probe, the FBI has said that Headley
delivered, placed, discharged and detonated explosives and other lethal devices in, into, and
against places of public use in India.

The FBI has indicted Headley on six counts. Significantly, the FBI has also formally charged a
retired Major of the Pakistan army, Abdur Rehman Hashim Syed, for the plot against a Danish
newspaper that Headley wanted to attack for the publication of cartoons of Prophet
Mohammad. Indian officials said Rehman was closely linked to the ISI. He has been arrested by
Pakistan; if the charges are upheld during the trial, it would be the first smoking gun that the
ISI is involved in exporting terror.

New Af-Pak policy of USA

US President Barack Obama, who unveiled his administration’s Af-Pak policy on December 2,
2009, ordered a surge of 30,000 US troops in Afghanistan and a “transfer of forces out” to
begin in July, 2011.

The strategic and security communities are uneasy over the President’s withdrawal plans.
While The Washington Post called it a “surge, then leave” policy, security experts are of the
view that withdrawal decisions must be determined by the conditions on the ground and not by
arbitrary deadlines. “The Obama administration has no exit strategy, it has only exit timeline,”
said Republican opponents.

As the speech clearly rejected the counter-insurgency principle of “clear, hold and build,”
there are fears that any setback would only invigorate the jihadist cause and put untenable
pressure on Pakistan and India. But President Obama appears to be keen on winding down the
war when he enters the political build up to the 2012 Presidential election.

In his address, President Obama described Pak-Afghan border as the epicentre of the violent
extremism practised by Al-Qaeda. “It is from here that we were attacked on 9/11, and it is
from here that new attacks are being plotted as I speak. “The people and governments of both
Afghanistan and Pakistan are endangered. And the stakes are even higher within a nuclear-
armed Pakistan, because we know that Al Qaeda and other extremists seek nuclear weapons,
and we have every reason to believe that they would use them.”

In his address, President Obama said the US will deny Al Qaeda a safe haven and will reverse
the Taliban’s momentum and crush its ability to overthrow the government. “We’re in
Afghanistan to prevent a cancer from once again spreading through that country. But this same
cancer has also taken root in the border region of Pakistan. That’s why we need a strategy that
works on both sides of the border,” he said justifying inclusion of Pakistan in his Afghan policy.

Stating that this was an international effort, President Obama sought the same war escalation
measures from his allies. “Some have already provided additional troops, and we are confident
that there will be further contributions in the days and weeks ahead. Our friends have fought
and bled and died alongside us in Afghanistan. Now, we must come together to end this war
successfully. For what’s at stake is not simply a test of NATO’s credibility; what’s at stake is
the security of our allies, and the common security of the world,” he said.

Scare aboard Delta Airliner

On December 27, 2009, US Federal officials brought criminal charges against a Nigerian man
suspected of trying to destroy a Northwest Airlines aircraft on December 25, 2009 as it
approached the airport in Detroit, Michigan.
The US Department of Justice said that Umar Farouk Abdulmutallab, 23, had boarded the plane
in Amsterdam, Netherlands, and tried near the end of the nine-hour-flight to set off an
explosion using PETN, also known as pentaerythritol, a high explosive.

Fellow passengers rushed to subdue the terror suspect after they heard popping sounds and saw
smoke and fire coming from Abdulmutallab's seat.

Even though the US authorities are yet to confirm the Yemen connection of the 23-year-old
Nigerian man's plot to blow up a Detroit-bound airliner on Christmas Day, they see Umar Farouk
Abdulmutallab's account that Al-Qaida had supplied explosive powder to him in Yemen "highly
plausible."

The suspect, reportedly, told US investigators that he had obtained explosive chemicals and a
syringe that were sewn into his underwear from a bomb expert in Yemen associated with Al-
Qaida, as part of a "mission to bring down a jet on US soil".

London: Terror capital of the West?

Britain has now emerged as the "terror capital of the West" as whenever a major terrorist
attack is attempted, suspicion swings on this country, according to a media report.

“It comes as no surprise to learn that the Nigerian accused of blowing up the US airliner is said
to have been living here. We have become the number one source of terrorism in the Western
world. We shelter foreign jihadis, and even grow our own… For years now, Islamic extremists
wanted on terror charges in their own country have taken sanctuary in Britain… Our judges (not
our politicians) say it would be cruel to send them back to their own countries, in case they're
tortured,” the 'News of the World' quoted the Editor of Spectacle, Fraser Nelson, as saying.

Years ago, the CIA had a name for it: "Londonistan".

AVIATION
Solar-powered aircraft to create flight history
History is being created inside a hangar at Dubendorf Air Base (Switzerland) that will radically
change the way an aircraft flies. The prototype of an aircraft, to be propelled entirely by solar power
even at night, has already been successfully tested for a ‘flea hop’ or a short flight at this airbase.

Scientists and engineers are working full-steam to fly the aircraft around the world for 36 hours
through day and night in the spring or summer of 2010.

Indian engineers and students have also shown a keen interest in being part of this historic feat but
are yet to become part of the 70-member team which is working on making the project a reality.

The aircraft, bearing call sign HB-SIA, has a weight of only 1,600 kg but has a wingspan of 63
metre, length of 21.85 metre and 6.4 metre height. Its weight can be compared to a family car and
the engine power to a scooter’s. It generates power from 11,628 photovoltaic solar cells spread
over the wings having a span of an Airbus A-340.

The aircraft is expected to be flown about 8,000 km each in five legs, having five stops in five
continents. The stoppages would be in Europe, the US, Pacific (probably Hawaii), the Emirates and
China.

The idea is to take off an hour before sunrise, climb to the maximum altitude of 8,000 metres and
not use energy stock in the battery. When the sun goes down, the aircraft would go down to an
altitude of about 1,000 meters to use lesser energy.

The aircraft has been designed for short take-offs and landings. Its Version-II, to be called HB-SIB,
would be built by 2013 to undertake a Trans-Atlantic flight.

Bertrand Piccard is the force behind the project and its test-pilot, which probably means taking
forward a family tradition of innovation and adventure. His grandfather went in a balloon to the
stratosphere and his father reached the bottom of the ocean in one of the first submarines.

AWARDS
Shakti Bhatt First Book Prize, 2009
Mridula Koshy's If It is Sweet, a collection of short stories, has bagged the award. The New Delhi-
based author will get Rs 1 lakh and a citation.

In 2008, Pakistani author Mohammed Hanif's A Case of Exploding Mangoes had won the award.

The Shakti Bhatt Foundation is a non-profit trust set up by the late writer/editor's family to keep her
memory alive.

Sahitya Akademi Awards, 2009

Renowned Hindi poet Kailash Vajpeyi has been honoured with the Sahitya Akademi award for his
work, Hawa mein hastakshar (Signature in the wind).

The other poets honoured with Sahitya Akademi award are: Praduman Singh Jindrahia (Dogri), Jess
Fernandes (Konkani), Raghu Leishangthem (Manipuri), Vasant Abaji Dahake (Marathi), Phani
Mohanty (Oriuya), Damayanti Beshra (Santhali) and Puviarasu (Tamil).

Those who won awards for collections of short stories include Vaidehi (Kannada), late Manmohan
Jha (Maithili), Samiran Chhetri ‘Priyadarshi’ (Nepali), Major Ratan Jangid (Rajasthani), Prashasya
Mitra Shastri (Sanskrit) and Anand Khemani (Sindhi).

Well-known novelists Dhrubajyoti Bora (Assamese), late Manoranjan Lahary (Bodo), U.A. Khadar
(Malayalam) and Yarlagadda Laxmi Prasad (Telugu) were also honoured with the 2009 awards.

Lokmanya Tilak National Journalist Award, 2010

N. Ram, Editor-in-Chief of the Hindu newspaper, has received the prestigious award, which is
conferred for excellence in journalism on a personality making important contribution to the field of
journalism at national level. Vir Sanghvi of Hindustan Times was the recipient of the Tilak Award in
2009.

DEFENCE
First consignment of Navy MIGs arrives
The first four Russian-made MiG-29K fighters to be deployed on the aircraft carrier INS
Vikramaditya, formerly the Admiral Gorshkov, when it is inducted into the Indian Navy have been
received in a knocked-down condition and will now be assembled in this country. The jets arrived in
the country on December 4, celebrated as Navy Day.

The jets were purchased by the Navy as part of a $1.5 billion deal signed with Russia in January
2004 for the Admiral Gorshkov. Of this $740 million was meant for the aircraft and the balance for
the refitting of the carrier. Russians have now upped the price to between $2.2 billion and $2.9
billion.

The Navy will eventually be getting 12 MiG-29K single-seater aircraft and four MiG-29KUB twin-seat
trainer aircraft, some in flyaway condition.
The Navy has named its MiG-29K squadron the Black Panthers. As the 45,000-tonne Kiev class
aircraft carrier is scheduled to be delivered by 2012, the jets will undertake shore-based sorties
from Goa.

EXPEDITIONS
Delhi girl Reena becomes first Indian woman to Ski to South Pole
For 38 days, Reena Kaushal Dharmshaktu, a mountaineer and outdoor instructor based in Delhi,
along with seven other women skied for eight to 10 hours a day, traversing a 915 km path through
one of the coldest and most desolate regions of the world. At 11.09pm on December 30, 2009,
Reena reached the trademark mirror-ball in the middle of nowhere that marks the geographic South
Pole, becoming the first Indian women to ski to the southern-most tip of the Earth.

She was part of the Kaspersky Commonwealth Antarctic Expedition mounted to mark the 60th
anniversary of the Commonwealth.

For 38-year-old Reena, who had edged out 116 compatriots to get the right to represent India in
the expedition, it marked a unique achievement. Her mountaineer husband, Love Raj Singh
Dharmshaktu, climbed Mt Everest in May 2009. “That is the highest point on Earth and I will be
skiing to South Pole, the lowest point on Earth,” Reena had written in the expedition’s web-page.

It was an arduous journey through the incredibly cold, all-white expanse of the continent, where the
team had to negotiate hundreds of metres deep crevasses. The expedition left behind nothing in the
icy wilderness, even carrying back human waste on 80 kg sledges that each member towed.

OIL
India to raise oil reserve to 8.5mt by 2012
India will create a five million tonne strategic petroleum reserve by 2012, raising the country’s total
storage capacity to 8.5 million tonnes—enough to meet 90-days consumption.

“To cater to situations like wars and natural calamities, we have established an SPV (special
purpose vehicle) called Indian Strategic Petroleum Reserve Limited (ISPRL) that will create a
storage facility of five million tonnes by 2012,” according to Minister of State for Petroleum Jitin
Prasada.

ISPRL says it would create the storage facilities at Visakhapatnam, Mangalore and Padur (near
Udupi). The proposed storages would be in underground rock caverns near the east and west coasts
so that they are readily accessible to the refining sector. Underground rock caverns are considered
the safest means of storing hydrocarbons.

RIL makes third gas discovery in KG basin

On December 22, 2009, Reliance Industries (RIL) announced its third successive discovery of
natural gas in 2009. All three finds have been in the Krishna-Godavari (KG) basin off India’s eastern
coast.

The commercial potential of the discovery in the block, known as KGD3, was being evaluated by
gathering more data, RIL said in a statement. RIL holds a 90% equity stake in the block, which
covers 3,288 square kilometres, and UK-based Hardy Oil holds the rest.

PERSONS
Dharamshaktu, Reena Kaushal
Reena Kaushal Dharmshaktu, a mountaineer and outdoor instructor based in Delhi reached the
trademark mirror-ball in the middle of nowhere that marks the geographic South Pole, on December
30, 2009, becoming the first Indian women to ski to the southern-most tip of the Earth. She was
part of the Kaspersky Commonwealth Antarctic Expedition mounted to mark the 60th anniversary of
the Commonwealth.

38-year-old Reena did her mountaineering training from the Himalayan Mountaineering Institute in
Darjeeling and has been on IMF expeditions to Gangotri 1, the first ascent of Argan Kangri, Fluted
Peak, Stock Kangri, Phawararang, Mt Nun and others.

She is currently a freelance instructor with the US-headquartered National Outdoor Leadership
Schools (NOLS) that teaches outdoor skills to people. Her father was an Armyman and during his
posting in Darjeeling, Reena fell in love with the mountains. “Being from an Army background, we
used to go for long walks with our father which set the groundwork for my tilt towards
mountaineering,” said Reena, who now wants to spread awareness about conserving the
environment.

PLACES
Copenhagen
A landmark and largest ever UN climate summit was held here in December 2009. Copenhagen is
the capital and largest city of Denmark. It is situated on the islands of Zealand and Amager.

First documented in the 11th century, Copenhagen became the capital of Denmark in the beginning
of the 15th century and during the 17th century under the reign of Christian IV it became an
important regional centre. With the completion of the transnational Oresund Bridge in 2000,
Copenhagen has become the centre of the increasingly integrating Oresund Region. Within this
region, Copenhagen and the Swedish city of Malmö are in the process of growing into one common
metropolitan area.

With around 2.7 million inhabitants within a 50 km radius, Copenhagen is one of the most densely
populated areas in Northern Europe.

Telangana
Till September 1948, Telangana region was part of Nizam's dominion, which was the biggest Muslim
State in India under British rule, known as the Hyderabad State. After Hyderabad's merger in the
Indian Union a year after Indian became independent, it was divided in to three parts. While some
districts went to Karnataka and Maharashtra, Telangana region retained its identity of a separate
State till 1956.

Under sustained pressure from the coastal Andhra region (earlier part of Madras presidency under
British rule) the government of India merged Telangana, including Hyderabad, with the Andhra
State comprising of thirteen districts of coastal Andhra and Rayalaseema region. But complaining of
injustices and discrimination, the people of Telangana continued their fight for a separate State.

The biggest agitation was witnessed in 1969, when more than 400 hundred people died in
government crack-down and the demand went on to the backburner.

Several agreements were reached between Andhra and Telangana on ensuring justice in river water
sharing, government jobs and sharing of funds, but they were never kept.

K. Chandrasekhara Rao revived the demand in 2001 after he left Telugu Desam Party. The region
today has 35 million population spread in ten districts including Hyderabad, the State capital. Most
of its area is arid and dependent on rains for agriculture, though both the big rivers of the state—
Godavari and Krishna—pass through the region.

PROJECTS
Rosa Power plant
The 77th birth anniversary of late Dhirubhai Ambani, on December 28, 2009, was chosen by Anil
Dhirubhai Ambani group (ADAG) to switch on its Rosa Power plant in Uttar Pradesh.

After synchronising with the State grid, it became northern India’s first thermal power plant in the
private sector to do so.

The total capacity of the project, costing Rs 6,000 crore, is going to be 1,200 MW. The first unit of
300 MW would get fully operational by April 2010. The second stage of 600 MW is likely to get
operational by March 2012.

What makes the project significant for UP is that 900 MW would be supplied to the UP Power
Corporation Limited (UPPCL). The rest 300 MW would be used as ‘merchant capacity’— company
can sell it to others.

Spreading over an area of around 1,500 acres, the construction of the project started in June 2007.
The plant would take water from Garrah river which flows nearby. Around 75 cubic metres of water
taken in would then be heated into steam to turn turbines of over 250 tonnes at a pace of 3,000
rotations per minute in order to generate the requisite power.

India’s first solar power plant opened in Amritsar

The sun virtually rose in the border belt of Punjab with Union Minister for New and Renewable
Energy Farooq Abdullah inaugurating India’s first-ever 2-MW solar power plant at Awan, near
Amritsar, Punjab, on December 15, 2009.

The plant, set up by US company Azure Power in the independent power producers (IPP) mode in
this sleepy village, started functioning as Dr Abdullah switched on its button. The 2MW plant will
subsequently be expanded to enable it to produce 5 MW of power.

RESEARCH
Lung, skin cancer genes decoded
Scientists have identified all the changes in cells of two cancers to produce the first entire cancer
gene maps, calling the findings a “transforming moment” in their understanding of the disease. The
mapping of the complete genetic codes of melanoma skin cancer and lung cancer will set the stage
for a medical revolution in which every tumour can be targeted with personalized therapy.

The studies by international scientists and Britain’s Wellcome Trust Sanger Institute in Cambridge
are the first comprehensive descriptions of tumour cell mutations and lay bare all the genetic
changes behind the two cancers. Such a detailed picture of the fundamental causes of the disease
will lead to earlier detection, new breeds of drugs and better understanding of what causes the
disease, scientists claim.

The scientists sequenced entire DNA from both tumour tissue and normal tissue from a melanoma
patient and a lung cancer patient, using a technology called massively parallel sequencing. By
comparing the cancer sequences with the healthy ones, they were able to pick up all changes
specific to cancer.

The lung tumour carried more than 23,000 mutations and the melanoma had more than 33,000. A
smoker develops one mutation for every 15 cigarettes smoked.

Scientists now have to track specific mutations that lead to cancer. This would help in producing
drugs to suppress these mutations. By about 2020, cancer patients could have their tumours
analysed to find the genetic defects that drive them.

Now, chill with a tea pill

The tiny tea tablet developed by scientists in Tocklai Experimental Station (TES) of the Tea
Research Association (TRA), located amid lush green tea gardens in Jorhat in Upper Assam, may
soon become an alternative for the age-old tea bag, a favourite with tea drinkers all over the world.

Tea tablets can be chewed or added to a cup of hot water for a cup of tea. Chewing a tablet will
freshen and cheer up a person with nearly the same effect as having a hot cup of brewed tea.

The tea pill is one of the innovations of the TES in Jorhat, the oldest and the largest research station
of its kind in the world. Since its inception in 1911, TES has become synonymous with the research
on its scientists have developed many technologies for boosting the tea production, especially in the
North-east India.

Some of major contributions of the TES to the tea industry include technique for vegetative
propagation of tea by inter-nodal cuttings, development of 30 high-yielding and better quality
clones and l4 hybrid seeds, selecting 154 region specific clones. TES also takes up collaborative
projects with some leading research institutes of the country, which include making tea
manufacture a continuous process by an integrated monitoring system, studies on the
pharmacological, physiological and medicinal values of tea, tissue culture.

First map of earth gravity field

European researchers have drawn up the first full map of the Earth gravity field on the basis of
information supplied by the GOCE probe of the European Space Agency (ESA). The research vehicle
was launched from Russia's Plesetsk spaceport in March 2009 with a Rokot rocket.

The map confirmed earlier hypothesis that the gravity force is not constant throughout the plane
due to geological and other peculiarities. For instance, St Petersburg is the area with largest gravity
in the European part of Russia.

India’s first human genome sequence

A team of scientists of the CSIR have declared success in decoding the genome sequencing of an
Indian citizen, a move that opens vistas for low-cost health care and predictive medicine for the
masses.

The sequencing of the genome puts India in a select group of countries, including the USA, the UK,
Canada, Korea and China, which have demonstrated such capability.

The Indian genome sequence, achieved in about nine weeks, was among sequences of 14 persons
available worldwide. The first genome sequencing was a global effort achieved by several scientists
across the world over a period of 13 years, beginning in 1990.

The sequencing opens up vistas for accurate treatment of individuals or a group of population
whose genome has been mapped.

Scientists at the CSIR could achieve this feat by adopting new technology and by effectively
integrating complex computational and bio-informatics tools with high throughput analytical
capability using super-computers.

SPACE RESEARCH
Russia to knock out Earth-bound asteroid?
Russia is considering sending a spacecraft to a large asteroid, Apophis, to knock it off its path and
prevent a possible collision with Earth.

When the 270-m asteroid was discovered in 2004, astronomers estimated the chances of it
smashing into Earth in its first flyby in 2029 were as high as 1-in-37, but have since lowered their
estimate. Further studies ruled out the possibility of an impact in 2029, when the asteroid is
expected to come no closer than 29,450 kilometers above Earth’s surface, but they indicated a
small possibility of a hit on subsequent encounters. According to NASA, another close encounter in
2068 will involve a 1-in-330,000 chance of impact.

Calculations show that it’s possible to create a special purpose spacecraft within the time on hand,
which would help avoid the collision without destroying the asteroid and without detonating any
nuclear charges.

“Super Earth” just 80 light years away

US astronomers have detected the second smallest exo-planet ever discovered with a mass just
four times heavier than the Earth, adding to a growing number of low-mass planets dubbed “super-
Earths.”

The exo-planet, a name given to planets outside our solar system, has been dubbed HD156668b,
and is located around 80 light years from Earth in the direction of the Hercules constellation. A light
year is rough 9,460 billion kilometres.

The planet orbits around its parent star in just over four days.

The smallest exo-planet previously discovered by astronomers was Gliese 581 e, detected by a
Swiss astronomer in April 2009 some 20.5 light years from Earth in the Balance constellation. But it
orbits much closer to its star, making its temperature much higher than that on Earth.

Some 423 exo-planets have been identified by astronomers so far, according to specialist site
exoplanet.eu, but none appear to be similar to Earth or capable of supporting life.

However, astronomers generally express confidence that either the Kepler telescope or the
European Corot telescope will eventually find exo-planets like Earth.

Hottest star in galaxy

Astronomers have discovered one of the fieriest stars in the galaxy which is 35 times hotter than
the sun. The dying star which has a surface temperature of 200,000 degrees was captured by
astronomers at Jodrell Bank Centre for Astrophysics in the University of Manchester by using the
recently refurbished Hubble Space Telescope (HST).

The star was located at centre of the Bug Nebula which is about 3,500 light years away in the
constellation Scorpius. This is the first time the star has been pictured.

“This star was so hard to find because it is hidden behind a cloud of dust and ice in the middle of
the nebula,” explained Prof Albert Zijlstra from the University of Manchester.

MISCELLANEOUS
World’s fastest train launched by China
Imagine zipping between Mumbai and Delhi in four hours flat on a superfast train. Well, Indians
may have to dream about it for a long time to come but China, on December 26, 2009, launched
what it described as the world’s fastest train, one that can travel at an average speed of 350 kph.

On its inaugural run, the train covered the 1,068 km between Wuhan in central China and
Guangzhou in the south in two hours 45 minutes.

By comparison, the average for high-speed trains in Japan is 243 kph while in France it is 277 kph.

The high speed line will use technology developed in co-operation with companies such as Siemens,
Bombardier and Alstom.

China’s new rail service is expected to act as a catalyst in the development of central parts of the
country by linking it to highly developed industrial hubs in the south.

The Chinese government has also announced plans to build 42 high-speed lines by 2012 in order to
spur economic growth amid the global downturn. The goal is to take the rail network from the
current 86,000 km to 120,000 km.

Indians can fly Tricolour at night

Indian citizens can now fly the national flag even at night, provided the flagpole is above 100 feet
and the flag is well-illuminated. The Home Ministry took the decision following a proposal by
industrialist and Congress MP Naveen Jindal, who had earlier won a court battle to make flying the
Tricolour a fundamental right for every citizen.

In a representation to the Ministry in June 2009, Jindal had sought permission to fly a mammoth-
sized national flag on huge flagpoles at night. Jindal had said the national flag is to be flown “as far
as possible between sunrise and sunset” as per Flag Code of India, but it was a common practice
worldwide for massive national flags to be flown day and night on flagpoles of 100 feet and above in
height. Citing the example of countries like Malaysia, Jordon, Abu Dhabi, North Korea, Brazil, Mexico
and Turkmenistan where monumental flags are flown at night, Jindal proposed that such flags to be
flown in India also.

The Ministry said that such flagpoles could be installed, provided there was adequate arrangement
for proper illumination of flags at night with backup in case of power failure and the flags are
replaced immediately as soon as they get damaged due to vagaries of nature.

Climate-change index
Scientists, on December 9, 2009, unveiled a Dow Jones-style “climate-change index” aimed at
showing in user-friendly form the perils posed by man-made global warming. The index takes a
basket of complex factors—carbon dioxide (CO2), temperature change, sea level and sea ice—and
distils them into a single figure that is more easily understandable for the public, they said.

In 1980, the index stood at 34, its creators, the International Geosphere-Biosphere Programme at
the Royal Swedish Academy of Sciences, said.

But from 1997, the barometer leapt suddenly, adding dozens of points each year as evidence of
climate change accumulated. As of 2007, the index stood at 574.

APPOINTED; ELECTED; Etc.

Shibhu Soren: JMM chief, he has been elected as the Chief Minister of Jharkhand.

Sushma Swaraj: BJP leader, she is the new leader of Opposition in the Lok Sabha.

Nitin Gadkari: He has been elected as the President of BJP.

Kaushik Basu: He has been appointed Chief Economic Advisor in the Finance Ministry in place
of Arvind Virmani, who has joined the International Monetary Fund as an Executive Director.
RESIGNED

N.D. Tiwari: Governor of Andhra Pradesh, a day after his pictures in a sex romp were flashed in
the media.

Lal Krishan Advani: Leader of Opposition in the Lok Sabha.

DISTINGUISHED VISITORS

Jigme Khesar Namgyel Wangchuck: King of Bhutan.

Yukio Hatoyama: Prime Minister of Japan.

Herve Morin: Defence Minister of France.

Robert Zoellick: President of World Bank.

DIED

Bina Rai: Legendary actress who charmed Indian audiences with her performance in ‘Anarkali’
and ‘Taj Mahal’. She was 78.

S.K. Singh: Governor of Rajasthan. He was 77.

Paul Samuelson: Nobel economics laureate whose work helped form the basis of modern
economics. He was 94.

EVENTS
DECEMBER
4—Over 40 people are killed as militants storm a mosque popular with army officers in
Pakistan’s garrison city of Rawalpindi.

4—The Nepal government, headed by Prime Minister Madhav Kumar Nepal, holds a historic
meeting at the base camp of Mt. Everest, amid freezing temperatures, to highlight the danger
posed by global warming to the Himalayas.

5— A massive blast triggered by fireworks display causes a stampede in a packed Russian

nightclub in the Ural mountain city of Perm, killing at least 109 and wounding 130 others.

7—A landmark and largest ever UN climate summit opens at Copenhagen, Denmark.

8—A series of five coordinated attacks strike Baghdad leaving 118 people dead.

9—Succumbing to pressure, the Union government concedes to the demand for a separate State
of Telangana for which the process will be initiated and an appropriate resolution will be
moved in Andhra Assembly in due course.

15—At least 33 persons are killed in a powerful car bomb blast outside the home of a senior
PML-N leader in Punjab province of Pakistan.

21—Snow and freezing temperatures cause transport chaos across Europe.

28—At least 32 people are killed in a suicide attack on a Muharram procession in Karachi,
Pakistan.

31—A suicide bomber penetrates army base in Afghanistan killing seven CIA men and five
Canadians.

MILESTONES
Ben Bernanke: US Federal Reserve Bank Chairman, he has been named as the “Person of the
Year, 2009” by the Time magazine, for helping guide USA through financial turmoil.

Jaspinder Grewal: Patiala engineer who now resides in Chicago he is the youngest presenter at
the US National Health IT Summit 2010 and the National HIPAA Summit 2010. HIPAA is the
world’s biggest event as far as Healthcare Information Technology is concerned.

Kaiane Aldorino: Miss Gibraltar, she has won the 2009 Miss World crown in a ceremony held at
Johannesburg, South Africa. Miss Mexico Perla Beltran finished second, while Miss South Africa
Tatum Keshwar was third

India’s total external debt rose by 8.1% to $242.8 billion at the end of September
2009, from $224.6 billion at March-end 2009. The long-term debt increased by
10.6% to $200.4 billion, while short-term debt declined by 2.3% to $42.4 billion.
Most of the increase in the debt ($8.3 billion or 45.6%) is due to depreciation of
dollar against major global currencies, out of total increase of $18.2 billion, according
to a Finance Ministry statement.

There are 12 full moons most years but every two or three years there is an extra
full moon which is called a “Blue moon”.

Year 2009 was designated by UN as the International Year of Astronomy, to

commemorate 400 years of Galileo’s theory about the solar system.

Government of India has introduced for the first time ‘visa on arrival’ scheme for
tourists from five countries—Singapore, Finland, New Zealand, Luxembourg and
Japan.

The Clementiny is the world’s smallest citrus fruit with size of 4 cm wide and 2 cm
high.

East and South-East Asian countries have decided to launch a $120-billion

emergency fund in March, 2010, the first such alliance in the region, to shield
themselves from a financial crisis. Under the scheme— known as the Chiang Mai
Initiative Multilateralization (CMIM)—Japan, China, South Korea, Hong Kong and the
10 members of the Association of Southeast Asian Nations (ASEAN) can swap their
own currency into US dollars in case of a liquidity crunch.

India’s share in the global flow of FDI almost doubled to 2.45% in 2008 compared
to the previous year, according to Union Commerce Minister Anand Sharma. Among
developing countries, India ranked fourth in terms of FDI inflows in 2008 as per
figures published in UNCTAD World Investment Report (WIR) 2009. During 2008-09,
India attracted FDI inflows worth $35.17 billion.

Financial Action Task Force (FATF) was founded by the G-7 countries in 1989 to
develop and promote national and international policies to combat money laundering
and terror financing. The membership of the FATF is limited to 35 countries at
present. India has an observer status. India is a member of the Asia-Pacific Group, a
FATF-style regional body. Membership of FATF will allow India easy access to real-
time information on money laundering and terror financing and help to raise the
diplomatic pitch against perpetrators. It will also make India more attractive in the
eyes of global investors.

Every third Indian is living below poverty line, says an expert group headed by
Suresh Tendulkar, former chairman of PM’s Economic Advisory Council. The report
puts the incidence of poverty in India at a high 37% of population, 10 percentage
points more than estimated earlier. Among the States, Orissa and Bihar are at the
bottom, while Nagaland, Delhi and J&K have the least number of poor. As much as
41.8% of the rural population survives on a monthly per-capita consumption
expenditure of Rs 447, spending only so much on bare necessities such as food, fuel,
light, clothing and footwear. Among urban population, 25.7% are poor, who spend
only Rs 578.8 on essential needs. The expert group was set up following criticism of
the existing official estimates of poverty released by the Planning Commission in
2007.

India's Nobel Peace Prize winner Mother Teresa will be honoured on a US postage
stamp on her birth centenary. The postage stamp honouring Mother Teresa is
scheduled to go on sale on August 26, 2010, on the occasion of her 100th birthday.

With a sale of 107 million newspapers daily, India is the biggest newspaper market
in the world. Together with China and Japan, it accounts for over 60 per cent of the
global newspaper sales. Interestingly, the USA accounts for only 14 per cent of the
total newspaper sales. Globally, 1.9 billion people read newspaper every day, which
is 34 per cent of the world population, while 24 per cent use the Internet. The WAN-
IFRA survey showed that newspaper circulation grew, on a global scale, by 1.3 per
cent in 2008 and almost 9 per cent over five years. The data shows consistent
newspaper growth in Africa, Asia and South America, and a long-term slowdown in
the US and European markets.

DEFENCE
Army doctrine being reviewed
The Army’s military doctrine is being reviewed and it will now include an added thrust in five
key areas that will propel the doctrine. This includes wars in faraway lands, besides strategy on
how to face future challenges posed by China and Pakistan.

The key areas include preparation for a two-pronged war with China and Pakistan. Both
countries will have to be looked at separately and also collectively. The nature of conflict, if
ever, with both countries will vary greatly in terms of terrain and use of weapons and fire-
power.

The Army, which is involved in fighting insurgency in J&K and the North-East, is also looking to
optimise capabilities to fight asymmetric war waged by both State and non-State actors, such
as terror attacks and proxy wars. This will include cyber and electronic warfare.

The doctrine will look at ways to enhance the strategic reach of the Army and joint operations
with the Navy and the Air Force. Countries like the USA already have airborne division while
China has capability of rapid induction of troops. The reviewed doctrine will also touch upon
space-based capability and methods to achieve technological edge over the enemy. The
doctrine is reviewed every five years by the Army’s Shimla-based Training Command.

PLANNING & ECONOMY

13th Finance Commission Report
The 13th Finance Commission, which makes recommendations on sharing of tax revenues by
the Centre and States, has suggested a new path for fiscal prudence in its report submitted to
President Pratibha Devi Singh Patil on December 30, 2009.

The Commission was headed by Vijay Kelkar. Other members of the Commission were B.K.
Chaturvedi, Indira Rajaraman, Atul Sarma and Sanjiv Misra.

The government had consigned the Fiscal Responsibility and Budget Management (FRBM), the
self-imposed fiscal prudence guidelines, to the back-burner in 2008 when it stepped up official
spending beyond its means in order to insulate the economy from the global financial
meltdown. The country’s fiscal deficit, a reflection of government borrowings, is estimated to
touch 6.8 per cent in 2009-10, up from 6.2 per cent in the previous fiscal, mainly on account of
the stimulus measures.

The recommendations of the 13th Finance Commission, Finance Minister Pranab Mukherjee said
“would get reflected in the 2010-11 Budget”.
The report, Kelkar said, dealt with the sharing of tax revenue between the Centre and States,
distribution of funds among States and support to local bodies. The Finance Commission report
assumes significance in view of the ongoing reforms in indirect and direct taxes, which will
have a bearing on the tax collections.

Currently, the States and Union Territories get Rs 1.64 lakh crore in a year, or around 30 per
cent of the shareable taxes collected by the Centre. The 12th Finance Commission had
recommended that 30.5 per cent of the shareable Central taxes should be shared among the
States and Union Territories. The shareable central taxes include corporation tax, income tax,
wealth tax, customs, excise duty and service tax.

Among other things, the Commission has suggested steps to deal with the growing off-budget
expenditure, especially, oil bonds. The report is based on the 2008-09 tax collections and does
not talk on post-GST scenario. However, implementation of the new indirect tax regime in 2010
would not be a concern as suggestions are based on revenue neutral rates.

China’s iron ore find can hit India’s exports

China has found a one-billion tonne iron ore deposit, which is the biggest discovery of the
mineral since 1980’s. This is bound to cause some worries in India as iron ore accounts for
nearly half of Indian exports to China.

The latest discovery is a 6-km long deposit with thickness ranging between 41.43 and 108.95
meters. It lies 100 to 600 meters deep underground in Luannan County in the northern province
of Hebei.

It will be some time before the new deposit will begin to yield iron ore, but the discovery will
definitely enable China to make long-term plans on steel production and strengthen its hands
in price negotiations. The discovery gives a new boost to China’s ongoing efforts to reduce its
dependence on major world suppliers and avoid getting caught in price fluctuations of the spot
market. Indian suppliers mostly deal in the spot market and refuse to enter into long-term
supply contracts.

EDUCATION
Scholarship scheme for minority students
The Union government has launched the Maulana Abul Kalam Azad National Fellowship Scheme
for minority students and another one to computerise State Wakf Boards.

Under the scheme, 756 fellowships (30 per cent to be reserved for women) will be offered per
year to minority students wishing to pursue higher studies. The objective is to grant integrated
five-year fellowships in form of financial assistance to students from minority communities as
notified by the Central government to pursue MPhil and PhD.

The scheme will cover all universities or institutions recognised by the UGC under Section 2 (f)
and Section 3 of the UGC Act and will be implemented by the Ministry of Minority Affairs
through UGC for students belonging to minorities.

The fellowships will be on the pattern of UGC fellowships awarded to research students
pursuing regular and full time MPhil and PhD courses. Holders of the new fellowship will be
called MoMA scholars.

ELECTIONS
Soren forms government in Jharkhand
Jharkhand Mukti Morcha chief Shibu Soren has been elected as the Chief Minister of Jharkhand
after successful conclusion of the
Assembly pools in December 2009. The JMM, which won 18 seats, garnered the support of the
BJP-JD(U), the All Jharkhand Students Union and Jharkhand Janadhikar Manch led by Bandhu
Tirkey, taking up the tally to 44 MLAs in a house of 80.

The BJP won 18 seats and the JD(U) 2 seats, All Jharkhand Students Union has 5 MLAs and the
Jharkhand Janadhikar Manch has one MLA.

The decision by JMM to enter into a coalition with the BJP-JD(U) combine brought to a close
the hectic lobbying that marked the three days since the Jharkhand elections threw up a hung
Assembly.

The Congress attacked the post-poll alliance between the BJP and the JMM as “the high point
of unprincipled and unethical politics”. “Till yesterday, Arun Jaitley and BJP were crying
hoarse about Shibu Soren’s criminal past but today they have no compunction about aligning
with a man who is being tried in three murder cases, including one which is coming up for
hearing as early as January 5, 2010,” party spokesman Manish Tewari said.

This is the third time the Mr Soren has occupied the post of Jharkhand Chief Minister. As per
the ministry-sharing formula worked out among the alliance partners, JMM and BJP will have
five ministers each in the team while AJSU will have a quota of two. BJP, which has also been
allowed to have its own man as the Assembly Speaker, has decided to part with one ministerial
berth from its share for its alliance partner JD(U).

Mr Soren, who was a Lok Sabha member before taking over as the Chief Minister, will have to
become an MLA within six months. Wiser from the humiliation suffered in January 2009, when
he had to quit the post after losing the by-election to the Tamar seat, the JMM chief is likely to
enter the fray from his family backyard Dumka. His son Hemant, had won the constituency in
the Assembly polls, is likely to vacate the seat in favour of his father, and retain the Rajya
Sabha membership.
Jharkhand Assembly ‘Safe Haven’ For Criminals
The politician-criminal nexus in India is alive and kicking. Proof of this was provided by the
profile of the newly elected MLAs in Jharkhand. As many as 31 of the 45 legislators backing the
JMM-BJP-AJSU coalition government have criminal cases pending against them.

Its not just the ruling coalition which is afflicted with this malaise. The Opposition benches in
the State too have several MLAs with criminal antecedents, making it clear that the process of
criminalisation of politics is proceeding unhindered. Chief Minister Shibu Soren, who had to quit
the Union Council of Ministers a few years ago after being convicted in a murder case, leads
the contingent. Besides him, 16 of the 18 JMM MLAs have criminal cases against them. The only
party MLA who starts with a clean slate is Sita Soren, daughter-in-law of Mr Shibu Soren and
widow of the late Durga Soren.

BJP and AJSU have eight and four MLAs, respectively, with criminal cases against them. One
JD(U) legislator and the lone JJM legislator Bandhu Tirkey also has criminal cases against him.
Mr Tirkey, a former minister, in fact, is presently languishing in jail as he’s one of the key
accused in the great Jharkhand loot undertaken by the Madhu Koda government.

JMM’s Dumri MLA Jagannath Mahato has been booked in 14 criminal cases while Mr Shibu
Soren’s son Hemant has six cases against him.

BJP’s Jharkhand unit president Raghubar Das also has criminal cases against him while C.P.
Singh, the fourth-term MLA from Ranchi, has nine cases against him.

As many as 11 of the 14 Congress MLAs also have cases against them, while eight JVM (P) and
four RJD MLAs have cases lodged against them.

Gujarat Assembly passes mandatory voting Bill

The Gujarat Assembly has passed a landmark Bill which makes, for the first time in the
country, voting mandatory in local body polls. The Gujarat Local Authorities Laws
(Amendment) Bill, 2009, which also seeks to raise the reservation of seats for women in local
self governance bodies from 33 to 50 per cent, was passed by voice vote. Under the Bill, if a
voter fails to vote for the reasons other than prescribed in the rules, he may be declared a
“defaulter voter” and would face consequences for which rules will be framed and placed
before the Assembly for its approval later.

LEGISLATION
Authors can now claim royalty
Authors of musical, cinematographic and literary works may now be entitled to royalty in case
their works are used for commercial purposes, a benefit denied to them so far. This can be
possible because of certain amendments in the Copyright Act of 1957, which has been
approved by the Union Cabinet for introduction in Parliament.

The amendment is proposed to give independent rights to authors of literary and musical works
in cinematography of films, which were hitherto denied and wrongfully exploited by producers
and music companies.

Another amendment ensures that the authors of the works, particularly songs included in the
cinematography of films or sound recordings, receive royalty for commercial exploitation of
such work.

The News Broadcasters Association had been apprehensive about the amendments and asked
the government to ensure that nothing was done to hurt the “well-established and understood
rights of broadcasters to fair use of material, including broadcast reproduction rights”.
POLITICAL
Advani steps down as Leader of Opposition
The curtain came down on L.K. Advani’s tenure as Leader of Opposition in Lok Sabha on
December 18, 2009. And while he made way for Sushma Swaraj, the 82-year-old veteran BJP
leader said he saw a new chapter opening in his political career.

After a meeting of BJP parliamentary party amended its constitution, Advani was elected
chairman, a post that has been created for him. The assembled party MPs then elected Swaraj
as leader of the party in LS, the first woman to hold the post in BJP.

The next act in the generational change was played out on December 19, when Rajnath Singh
stepped down as BJP President and Maharashtra unit chief Nitin Gadkari took charge. The
change of guard completed a process that had been in the works since the party lost its bid for
power in 2009 national elections.

Sushma Swaraj, at 57, clearly marks a generational change as does 52-year-old Gadkari. Advani
is expected to play a role as mentor and the amended constitution says he will appoint the two
leaders of Opposition.

Nitin Gadkari is the youngest BJP president. His elevation marks the culmination of the
exercise to effect a generational shift at the top in the party hierarchy—both in its
organisational and parliamentary wings.

Mr Gadkari assumes his new responsibility at a very crucial time. After tasting defeat in a series
of electoral battles, cadre morale is low. The party was also bogged down by a debilitating
infighting among the so-called second generation leaders. The BJP has also failed to keep pace
with the changing times, and lost the trust of the youth and the burgeoning urban middle class
in the process.

Mr Gadkari, who hails from Nagpur and over the years cultivated the image of an honest, hard-
working leader who has toiled his way to the top, thus has task cut out.

FOREIGN RELATIONS
India-Bangladesh pacts to tackle terrorism
On December 2, 2009, India expressed its gratitude to Bangladesh for taking speedy action to
foil a conspiracy by the LeT to attack the Indian mission in Dhaka recently as the two countries
finalised three key agreements to combat terrorism. The agreements were signed during the
visit of Bangladesh Prime Minister Sheikh Hasina to New Delhi.

The two sides arrived at an agreement on: Mutual legal assistance in criminal matters,
combating international terrorism, organised crime and illicit drug trafficking; and agreement
on transfer of sentenced persons. However, the two sides have not yet been able to resolve
differences over a bilateral extradition treaty.

The finalisation of the three accords marks a major confidence-building measure (CBM) to
address the issue of Indian insurgents taking shelter in Bangladesh, which had marred ties
between the two nations in recent years. New Delhi, however, is quite happy over the manner
in which the Sheikh Hasina government has been cooperating with it in checking the activities
of these insurgents.

Visit of Bhutanese King

Increasing the pace of cooperation in the hydro-power sector, India and Bhutan have signed
four agreements to conduct technical surveys for hydro-power projects. The four MoUs related
to the hydro-power sector were part of 12 agreements that were signed after discussions
between Prime Minister Manmohan Singh and visiting Bhutanese King Jigme Khesar Namgyel
Wangchuck, who was on his first foreign visit in December 2009, since his coronation in 2008.

India and Bhutan have decided to prepare detailed project reports for the Kuri Gongri,
Chamkharchhu-1 and Kholongchhu hydro-power projects and Amochu reservoir project. The
Kuri Gongri project is proposed to generate 1,800-mw power, the Chamkharchhu-1 670 mw and
the Kholongchhu 670 mw. Further, the two sides have also agreed to conclude implementation
agreements for Punatsangchhu-2 project

Bhutan uses 400 mw and has an installed capacity of 1,500 mw of power. The entire surplus
comes to India which is helping Bhutan increase its capacity to 10,000 mw till 2020.

Apart from the MoUs on the hydro-power projects, the two sides also signed eight other
agreements in areas ranging from agriculture to health to civil aviation. The two sides also
signed an agreement to set up the Bhutan Institute of Medical Sciences in Thimphu and an
agreement on an IT project, which plans to make nearly half of Bhutan’s population e-literate.

Visit of Japanese Prime Minister

Prime Minister Yokio Hatoyama of Japan visited New Delhi in end-December 2009. During the
high-level talks, Japan urged India to sign the Comprehensive Test Ban Treaty (CTBT), but
Prime Minister Manmohan Singh put the onus for its ratification on China and the US.

The issues of nuclear disarmament and non-proliferation were discussed with both sides
agreeing to the need for an early start to the Fissile Material Cut-off Treaty negotiations. But
on the issue of the non-proliferation treaty both sides agreed that there was a difference of
perception. Mr Singh reiterated that India is “deeply interested in working with Japan and
other like-minded countries to promote the cause of universal, verifiable and non-
discriminatory disarmament”.

Even though Mr Singh highlighted India’s “impeccable record” in non-proliferation and

explained the country’s nuclear history, the Japanese Prime Minister remained non-committal
on civilian nuclear cooperation between India and Japan. Keeping the matter pending, Mr
Hatoyama said nuclear energy would be an item on the agenda for future discussions.
In the absence of an agreement on nuclear cooperation, the Japanese Prime Minister,
however, indicated that Japan is willing to relax restrictions on hi-tech trade and said there
was a “positive conclusion” on the issue of hi-tech trade. During talks, Mr Singh assured his
Japanese counterpart that Indian companies would not divert hi-tech imports from Japan for
weapon’s purposes or to a third country and sought liberalisation in this area.

The economic partnership, however, remained the “bedrock” of relationship, with both sides
discussing a range of economic issues, including Japanese investment and trade agreement.
The two Prime Ministers have decided to push their negotiators to expedite negotiations into
the comprehensive economic partnership agreement.
Mr Hatoyama pointed out that bilateral trade between India and Japan is far less than that
between Japan and China. Mr Singh, however, said he had conveyed to the Japanese Prime
Minister that India welcomes Japanese investments into the country and pointed out that
India’s growing economy offers huge opportunities for Japan.

The two sides also discussed the liberalisation of visa regime on both sides, with the Japanese
Prime Minister raising the issue saying that it was important as there were several major
projects being undertaken in India for the benefit of both countries.

The two leaders also vowed to push for an early conclusion of an economic partnership
agreement to scale up trade and investment and cooperate on a range of global issues,
including the UN reforms, climate change and nuclear disarmament
India, Japan sign agreements on Rs 360-kcr DMIC project: India and Japan signed two
agreements on December 28, 2009 for implementing the ambitious Rs 3,60,000-crore Delhi-
Mumbai Industrial Corridor (DMIC) project that seeks to create integrated investment regions
and industrial areas across six States. The agreements include collaborating in the development
of eco-cities, that is cities that are environmentally and ecologically sustainable, along the
corridor and setting up of a project development fund to undertake activities like master
planning and feasibility studies, preparing project reports and obtaining approvals and bid
process management for projects.

The Delhi-Mumbai Industrial Corridor Development Cooperation has signed the memorandum of
understanding with Jetro (in cooperation with Japan Bank for International Cooperation) for
facilitating collaboration between Japanese and Indian companies from environment-related
sectors and providing expertise in development and promotion of DMIC projects.

The DMIC project development fund will be set up with equal contribution from the
governments of India and Japan. India has approved a grant of Rs 330 crore (approximately $75
million) as the country’s contribution. The Japanese component of $75 million is being
provided in the form of untied loan from JBIC.

Visit of Prime Minister Manmohan Singh to Russia

On December 7, 2009, during the visit of Prime Minister Manmohan singh to Moscow, relations
between India and Russia experienced more than a thaw on a range of interests encompassing
N-trade, shared Af-Pak perceptions and a plan to boost commerce to $20 billion by 2015.

The discussions between Prime Minister Manmohan Singh and Russian President Dmitri
Medvedev yielded a rich cache of agreements which included establishing a credit line of $100
million and a nuclear agreement that allows India to reprocess fuel and virtually guarantees
unhindered supply of nuclear fuel.

Prime Minister Manmohan Singh, after signing a crucial nuclear deal with Russia, said there
would be an addition to the two reactors being developed at Kudankulam in Tamil Nadu, while
a site was being considered at Haripur in West Bengal.

Meanwhile, Russian President Medvedev stressed that Moscow did not support any addition to
the club of N-weapon States, which has implications on the country’s position in Iran, and that
N-weapons should not be "held hostage to terror", in a fairly direct reference to Pakistan.

Medvedev also made it clear that the G-8 statement at La Aquila did not impact on ENR
(enrichment and nuclear reprocessing) related agreements with India.

The continuing global slowdown and a decline in oil prices have made Russia more open to
reaching out to an old friend while the change of guard in US has seen India reaffirm ties, with
Singh describing Russia as a “global world power”. The two nations also share concerns over
the rise of China.

With the meeting with Medvedev having set the mood, Manmohan Singh’s interaction with
Prime Minister Putin, still very much the “real” power centre in Moscow, saw a detailed
exchange of assessments.

The two sides signed a total of six agreements but the Russians were clearly pleased with the
civil nuclear cooperation pact. The reactors, which cost about $1.5 billion each, will certainly
be welcome for a Russian economy that is simply not doing too well.

India and Russia signed a path-breaking broad-based agreement in civil nuclear field that will
ensure transfer of technology and uninterrupted uranium fuel supplies to its nuclear reactors
and inked three pacts in the defence sector.

The Indo-Russian pact on atomic cooperation is a significant document and goes much further
than the 123 agreement between India and the US. The pact also has provisions for transfer of
enrichment and nuclear technology, which is denied in the 123 agreement with the US.

The two countries also reviewed their cooperation in the United Nations and in multilateral
fora and their role towards successful conclusion of the Copenhagen Summit on climate
change.

RESERVATIONS
Ranganath Commission report on Religious and Linguistic Minorities
Two years after it was submitted to the government, report of the National Commission on
Religious and Linguistic Minorities is ready to be tabled in the Parliament.

Constituted to assess the status of minorities and suggest ways of improving their lot, the
Commission, headed by Justice Ranganath Misra, has recommended 15 per cent reservation in
non-minority educational institutions and Central and State government jobs for all religious
and linguistic minorities.

Out of the 15 per cent earmarked seats in education institutions, Muslims should be given 10
per cent reservation (commensurate with their 73 per cent share in the total minority
population in India) and the remaining 5 per cent to other minorities, states the report.

It adds that if Muslim candidates are not available to fill 10 per cent seats, the remaining
vacancies should go to other minorities and in “no case to the majority community.”On
employment front, the report argues that since the minorities, especially Muslims, are much
under-represented in government jobs, “we recommend they should be regarded as backward
in this respect within the meaning of that term as used in Article 16 (4) of the Constitution.”

Accordingly, the recommendation is to reserve 15 per cent of posts in all cadres and grades
under the Central and State governments for the religious and linguistic minorities. Of this, 10
per cent quota is recommended for Muslims and the rest for other minorities.

The report, co-authored by Tahir Mahmood, also recommends the inclusion of Muslim and
Christian Dalits in SC list, something the National Commission for Minorities has also been
supporting.

TERRORISM; LAW & ORDER

ULFA chief held in Bangladesh
In the most serious setback that has been suffered by the banned United Liberation Front of
Assam (ULFA) in recent times, its chairman Arabinda Rajkhowa was arrested by Bangladeshi
agencies somewhere near Dhaka in Bangladesh on December 2, 2009.

The arrest which came close on the heels of November 5 arrest of another two top leaders of
the outfit, Sashadhar Choudhury and Chitrabon Hazarika, in Dhaka indicated that the outfit’s
sanctuary in Bangladesh was in serious danger.

With Rajkhowa’s arrest, only two major leaders of the outfit, self-styled commander-in-chief
Paresh Barua and deputy commander in chief Raju Baruah, are now at large. Another top
leader, general secretary Anup Chetia, alias Golap Barua, is lodged in a jail in Bangladesh.

Arabinda Rajkhowa (53) whose real name is Rajib Rajkonwar, has been the chairman of the
ULFA since early 1980s and was one of the founder leaders of the ULFA. He studied up to Class
XII, and is the second of three sons of freedom fighter Umakanta Rajkonwar who passed away
three years ago at the age of 101 years. He hails from Lakwa in Sivasagar district of Upper
Assam.

Rajkhowa also has an Interpol red corner notice against him, issued on June 4, 1997 for his
involvement in several heinous crimes. Out of India since 1992, Rajkhowa is known to keep
travelling to Myanmar, Bhutan, Thailand, Bhutan, Pakistan and other countries on fake identity
and fake passports.

He was trained under Kachin Independence Army in Myanmar and National Socialist Council of
Nagaland (NSCN). He can handle all types of arms. He is also the vice-president of the Indo-
Burma Revolutionary Front (IBRF).

BOXING
WBC World Heavy-weight Title
Vitali Klitschko retained his title, winning a unanimous points decision against American challenger
Kevin Johnson. The 38-year-old Ukrainian spent the entire fight on the offensive against previously
unbeaten Johnson but could not find his customary knockout as his opponent opted for survival.

Suranjoy wins gold at President's Cup boxing

Asian champion Suranjoy Singh has become the first Indian boxer to clinch a gold medal at the
inter-continental President's Cup. He out-punched Frenchman Nordine Oubaali 8-1 in the flyweight
(51kg) final, in Baku, Azerbaijan. The 22-year-old Manipuri's triumph also fetched him US $3,000 at
the prestigious season-ending event, where confederations from Asia, America, Africa, Europe and
Oceania are pitted against each other.

CHESS
Asian Team Championship, 2009
India-A men’s team overwhelmed Sri Lanka to annex the gold in the Tata Steel Asian Team Chess
Championship which concluded at Kolkata. Vietnam took the silver while Iran had to be content with
the bronze. In the women’s section, Vietnam crushed Nepal 4-0 to total 11 points and win the gold.

National Premier Title

Baskaran Adhiban won the title with a round to spare in match against Abhijeet Gupta of PSPB.
Adhiban also bagged his first Grandmaster norm in the process, something which he had narrowly
missed thrice in the last two years.

CRICKET
Australia-West Indies Test series
Australia survived a tense final session to force a draw against the West Indies in an absorbing
second Test at the Adelaide Oval.

Australia triumphed over a never-say-die West Indies inside four overs on the final day to win the
third and final Test by 35 runs, and win the three-Test series 2-0. The West Indies came into the
final day requiring 51 more runs for the unlikeliest of victories with Nos. 10 and 11 at the crease,
but were eventually dismissed for 323.

South Africa-England Test series

Last man Graham Onions played out a tense final over from Makhaya Ntini as England escaped with
a draw on the fifth and final day of the first Test against South Africa at Centurion.

Graeme Swann took five for 54 as England wrapped up victory by an innings and 98 runs on the
fifth day of the second Test against South Africa at Kingsmead.

Australia-Pakistan Test Series

Chasing a mammoth total of 422 runs, Pakistan had a daunting task of surviving the penultimate
day of the first Test match at Melbourne, and Australian off-spinner Nathan Hauritz made the task
impossible with his maiden five wicket haul. Riding on Hauritz’s splendid spell (5-101) Australia
defeated Pakistan by 171 runs. For Aussie captain, Ricky Ponting, the win was more special, as he
has now captained the most Test victories (42) than any other player in the world, and played in
more wins (93).

India-Sri Lanka Test Series

India became the number one team in Test rankings after they spanked Sri Lanka by an innings and
24 runs in the third and final cricket Test, played in Mumbai, to clinch the three-match series 2-0.

India-Sri Lanka ODI series

The first match at Rajkot saw a flurry of 4s and 6s resulting in both teams together scoring 825
runs in 100 overs, at a strike rate of 8.25 per over. In the end India just managed to scrape
through with a three-run victory. Batting first, India amassed 414 runs in 5 overs. It was the
highest ODI total ever recorded on Indian soil. Lankans finished at 411 for 8 in 50 overs, becoming
first team ever to score 400-plus while chasing and still lose.

Tillakaratne Dilshan’s power-packed century provided the perfect platform for the visitors as Sri
Lanka defeated India by three wickets in the second match at Nagpur to level the series 1-1.

Gautam Gambhir hit 150 not out and Virat Kohli his first ODI ton as India beat Sri Lanka by 7
wickets at Eden Gardens, Kolkata, taking an unbeatable 3-1 lead in the five-match series.

The fifth and final match had to be abandoned because of the ‘dangerous’ pitch at Feroze Shah
Kotla ground in New Delhi. The controversy forced the DDCA to apologise and the BCCI to disband
the pitch committee headed by Daljit Singh.

India-Sri Lanka T20 series

Yuvraj Singh belted a whirlwind 60 and bagged three wickets to fashion a six-wicket win for India in
the second T20 International against Sri Lanka at Mohali. The win enabled India to level the two-
match series. Sri Lanka had defeated India by 29-run loss in the first match in Nagpur.

India is ranked world number one

On December 6, 2009 millions of Indians were united in celebration as their team ascended to the
top of the ICC Test rankings after defeating Sri Lanka in the third and final Test at Mumbai.
Fittingly, the win that made it possible was marked by stand-out performances from the men who
have played a crucial role in India’s ascent. Virender Sehwag has scored more runs than any other
Indian batsman over the last 25 Tests—played over a two-year period starting November 2007. His
rollicking 293—at a pace that left the bowlers ample time to finish the demolition job— proved
pivotal as India fulfilled its tryst with the top slot.

Harbhajan Singh and Zaheer Khan have been India’s highest wicket-takers during this period. Both
picked up six wickets apiece for the match, with Zaheer coming up with a five-wicket haul to polish
off the tail and take India to a comfortable win by an innings and 24 runs.

Sehwag breaks records

Virender Sehwag has become the first Indian to post two double centuries against Sri Lanka. He is
also the first Indian batsman to rake-up 200 runs through boundaries (202 runs in 40 fours and
seven sixes). Only John Edrich (238 runs in 1965), Mathew Hayden (218 runs in 2003) and
Inzamam-ul-Haq (206 runs in 2002) have recorded more runs through boundaries than Sehwag. He
has also become the first Indian batsman to share six double century stands for the first wicket in
Tests.

FOOTBALL
FIFA World Player of Year
Argentine and Barcelona football star Lionel Messi has been named World Player of the Year, while
Portuguese and Real Madrid icon Cristiano Ronaldo has secured the Puskas Goal of the Year gong.

SAFF title, 5th

India avenged their last edition title loss as they prevailed over Maldives 3-1 via penalty shoot-out
in the SAFF Championships summit clash to claim their fifth crown. The championship was held in
Dhaka, Bangladesh. After the match failed to produce any goal in the regulation and extra times,
the match was decided in a penalty shoot-out.

HOCKEY
Champions Challenge, 2009
New Zealand defeated Pakistan 4-2 to lift the title. Earlier, Pakistan had defeated India 6-3 in the
semi-finals.

Champions Trophy, 2009

Australia clinched the ABN AMRO Hockey Champions Trophy title in stunning fashion beating
Germany 5-3. Australia clinched the title for the second year in a row and had won the title nine
times earlier. The championship was held in Melbourne.

SHOOTING
Gagan shoots double gold in Asian event
Gagan Narang shot an individual gold and also helped India bag the team gold in the Asian Air Gun
Championships in Doha. The team comprising Narang, P.T. Raghunath and Sanjeev Rajput won the
gold with a score of 1782. The silver was won by China (1779) while Iran (1764) bagged the
bronze.

In the junior men’s air rifle, Chain Singh won the bronze. In the youth category, Navdeep Singh
Rathore shot 585 to qualify for the inaugural edition of the Youth Olympics in 2010.

TENNIS
Davis Cup, 2009
Spain won its fourth Davis Cup title when Fernando Verdasco and Feliciano Lopez took the doubles
to give the team an unassailable 3-0 lead over the Czech Republic. Spain also becomes the first
country since Sweden in 1998 to retain the Davis Cup, after triumphing in 2008 in Argentina.

WRESTLING
Commonwealth Free-style Championship
Indian women wrestlers put up a good show by winning three gold, four silver and five bronze
medals followed closely by Canada and Cameroon during the championship held at Jalandhar.
Among Indian wrestlers Babita, Geeta and Alka Tomar won gold in the 51, 55 and 59 Kg free-style
wrestling.

Indian men grapplers put their opponents on the mat and put up a splendid show by winning 14
medals. Hosts India won seven golds, three silver and four bronze in the free style competition and
clinched the team championship trophy.
 ESSAY

IDEOLOGY OR TECHNOLOGY

The choice is not as baffling as Hamlet’s predicament: “to be or not to

be.” If ideology means a set of ideas that form the basis of an
economic or political theory, or that are held by a particular group or
community, technology stands for scientific study and use of
mechanical arts and applied sciences. Over a period of time, both
ideology and technology have acquired a strong gravitational force
that has rendered them more as combatants than as comrades-in-
arm. To the unsuspecting or uncritical, progressive ideology may
appear seriously dealing with issues like poverty, social inequality,
deprivation, exploitation, et al and technology too may seem trying to
grapple with human problems that hinder faster economic
development, better means of communication and transport,
improving quality of life and living conditions, updating the frontiers of
knowledge, et al. If their aims are meant for human welfare, why is
technology being preferred over ideology in the present world? The
question is equally rigorous and relevant and calls for cool
consideration and discreet discussion.

In concept and complexion, ideology tends to become inflexible if new

inputs are not allowed to revitalise and rejuvenate its contents and
contours. Technology, though flexible and forward-looking, is also
subject to becoming a terrible tool of death and destruction in the
hands of evil. Since technology has managed to occupy the centre
stage of the world, and rightly so, any conflict or competition between
ideology and technology is not only untimely but also untenable. There
is no denying the fact that technology has acquired the power and
potential to turn and twist our senses and sensibilities. It is the
practical application of technology that determines its pivotal place in
our concerns and calculations. Although humankind desperately needs
the three paramount pillars of Gandhian thought and practice—Truth,
Ahimsa and Goodness— yet it is the fast tempo of life, coupled with
worldly success and a candid control over time and space, that stands
out as something tangible and telling as compared to abstractions.

The question that needs to stir our conscience should be: Can we
afford to abandon our concern for socio-political causes and
commitments to human values that lend meaning, motive and mission
to our perceptions and practices? Has ideology become irrelevant and
irrational in the deluge that science and technology has unleashed? No
doubt, technology is on the march to attain more and more
milestones. But technology devoid of political philosophy, economic
egalitarianism and social justice for all is fraught with dangerous
dimensions. A world where only technology matters is likely to become
as perilous as a single track mind obsessed with fantasies bordering on
phantoms.

There is near unanimity on the view held the world over that
technology unites people, irrespective of their colour or creed, whereas
ideology divides them and puts them in water-tight compartments.
The memories of ‘Concentration Camps’, ‘Gas Chambers’ and other
forms of genocide associated with ideologies like Fascism, Nazism,
Marxism and the like are too chilling and blood curdling to be easily
erased from mental screens. Equally unnerving and unsettling are the
events and their consequences that were the direct outcome or fallout
of the holocaust let loose by nuclear technology mindlessly employed
during the closing years of World War II (1945). The division of the
world in two power blocs, and the traumas of Cold War —all in the
name of ideology—is too fresh an irritant that none in his/her senses
would ever wish their repetition.

Technology is indispensable in whatever age we may be living. Equally

important is the place of socio-economic/political system that assures
the benefits of progress reaching the last person under the sun.
Generally, when we talk of ideology, we seem to discuss some
philosophy that is retrograde, but when we eulogise technology, we
appear to swim with the current. If technology promises the best now,
ideology holds the promise of the best to be in future. In fact,
technology has been called a great social leveller. What ideology fails
to achieve and fulfil, technology does without much pride and
prejudice.

With the spread of liberal education, and cross migration of people

from one region to the other, it has become literally impossible for the
die-hards to resist the vibrant influences that technology has imprinted
on human psyche. For the paradigms of ideology, that purport to
promote social services like education, health care, potable water,
houses, employment, etc for all, it better join hands with the ever
expanding horizons of technology and thus play the role of an
interlocutor. Instead of being at loggerheads, both humane ideology
and towering technology can work hand in glove with each other.
APPOINTED; ELECTED; Etc.

Mahinda Rajapaksa: He has been re-elected as the President of Sri Lanka,

E.S.L. Narasimhan: He has been appointed as the Governor of Andhra Pradesh.

Shivraj Patil: He has been appointed as the Governor of Punjab and Chief Administrator of
Union Territory of Chandigarh.

M.K. Narayanan: He has been appointed as the Governor of West Bengal.

Prabha Rau: She has been appointed as the Governor of Rajasthan.

Sekhar Dutt: He has been appointed as the Governor of Chattisgarh.

M.O.H. Farooq: He has been appointed as the Governor of Jharkhand.

K. Sankaranarayanan: He has been appointed as the Governor of Maharashtra.

Urmila Singh: She has been appointed as the Governor of Himachal Pradesh.

Gen Vijay Kumar Singh: He has been appointed as the Chief of Army Staff, Indian Army.

Shiv Shankar Menon: He has been appointed as the National Security Advisor.

S. Sundareshan: He has been appointed as the Petroleum Secretary in the Union government.

Vikram Srivastava: He has been appointed as the Director-General of Central Reserve Police
Force (CRPF).

Raman Srivastava: He has taken over as the Chief of Border Security Force (BSF).

Ranjeet Kumar Bhatia: He has taken over as the Chief of Indo-Tibetan Border Police (ITBP).

Mrinal Pandey: She has been appointed as the Chairperson of Prasar Bharti.

DISTINGUISHED VISITORS

Lee Myung-bak: President of South Korea. He was the Chief Guest on occasion of the Republic
Day 2010.

Sheikh Hasina: Prime Minister of Bangladesh.

Uzi Arad: National Security Adviser of Israel.

Vice-Admiral Elizer Marom: Commander-in Chief of Israeli Navy.

Mohd Najib Tun Abdul Razak: Prime Minister of Malaysia.

DIED
Jyoti Basu: CPM patriarch and former Chief Minister of West Bengal. He was 95.

Billy Arjan Singh: Pioneering wildlife activist and author. He was 94.

Erich Segal: Author of the tear-jerking novel Love Story and screenwriter of the Oscar-winning
film version. He was 72.

JANUARY 2010
1—India-ASEAN Free Trade Agreement (FTA) comes into effect with Singapore, Malaysia and
Thailand implementing it with immediate effect.

1—A suicide bomber blows up a car packed with explosives killing 70 people during a volleyball
game in a village in north-west Pakistan.

4—Blazing fireworks and dazzling lights mark the opening of the world's tallest tower, Burj
Khalifa (formerly known as Burj Dubai).

14—The first holy bath of century’s and Uttarkhand’s first Maha Kumbh starts at Haridwar.

15—Century’s longest annular solar eclipse takes place.

18—Taliban attack heart of Kabul by targeting key government buildings.

13—More than three lakh people are killed as an earthquake with 7.0 magnitude hits Port-au-
Prince, capital of Haiti.

25—Ninety persons die in Ethiopian airlines crash into Mediterranean sea, shortly after take-off
from Beirut.

26—Sri Lanka goes to polls to elect new President.

27—Bangladesh hangs five ex-Army officers convicted for assassinating country’s founder
Sheikh Mujibur Rahman, almost three decades after he was killed in a military coup.

DEFENCE
Army doctrine being reviewed
The Army’s military doctrine is being reviewed and it will now include an added thrust in five
key areas that will propel the doctrine. This includes wars in faraway lands, besides strategy on
how to face future challenges posed by China and Pakistan.

The key areas include preparation for a two-pronged war with China and Pakistan. Both
countries will have to be looked at separately and also collectively. The nature of conflict, if
ever, with both countries will vary greatly in terms of terrain and use of weapons and fire-
power.

The Army, which is involved in fighting insurgency in J&K and the North-East, is also looking to
optimise capabilities to fight asymmetric war waged by both State and non-State actors, such
as terror attacks and proxy wars. This will include cyber and electronic warfare.

The doctrine will look at ways to enhance the strategic reach of the Army and joint operations
with the Navy and the Air Force. Countries like the USA already have airborne division while
China has capability of rapid induction of troops. The reviewed doctrine will also touch upon
space-based capability and methods to achieve technological edge over the enemy. The
doctrine is reviewed every five years by the Army’s Shimla-based Training Command.

PLANNING & ECONOMY

13th Finance Commission Report
The 13th Finance Commission, which makes recommendations on sharing of tax revenues by
the Centre and States, has suggested a new path for fiscal prudence in its report submitted to
President Pratibha Devi Singh Patil on December 30, 2009.

The Commission was headed by Vijay Kelkar. Other members of the Commission were B.K.
Chaturvedi, Indira Rajaraman, Atul Sarma and Sanjiv Misra.

The government had consigned the Fiscal Responsibility and Budget Management (FRBM), the
self-imposed fiscal prudence guidelines, to the back-burner in 2008 when it stepped up official
spending beyond its means in order to insulate the economy from the global financial
meltdown. The country’s fiscal deficit, a reflection of government borrowings, is estimated to
touch 6.8 per cent in 2009-10, up from 6.2 per cent in the previous fiscal, mainly on account of
the stimulus measures.

The recommendations of the 13th Finance Commission, Finance Minister Pranab Mukherjee said
“would get reflected in the 2010-11 Budget”.
The report, Kelkar said, dealt with the sharing of tax revenue between the Centre and States,
distribution of funds among States and support to local bodies. The Finance Commission report
assumes significance in view of the ongoing reforms in indirect and direct taxes, which will
have a bearing on the tax collections.

Currently, the States and Union Territories get Rs 1.64 lakh crore in a year, or around 30 per
cent of the shareable taxes collected by the Centre. The 12th Finance Commission had
recommended that 30.5 per cent of the shareable Central taxes should be shared among the
States and Union Territories. The shareable central taxes include corporation tax, income tax,
wealth tax, customs, excise duty and service tax.

Among other things, the Commission has suggested steps to deal with the growing off-budget
expenditure, especially, oil bonds. The report is based on the 2008-09 tax collections and does
not talk on post-GST scenario. However, implementation of the new indirect tax regime in 2010
would not be a concern as suggestions are based on revenue neutral rates.

China’s iron ore find can hit India’s exports

China has found a one-billion tonne iron ore deposit, which is the biggest discovery of the
mineral since 1980’s. This is bound to cause some worries in India as iron ore accounts for
nearly half of Indian exports to China.

The latest discovery is a 6-km long deposit with thickness ranging between 41.43 and 108.95
meters. It lies 100 to 600 meters deep underground in Luannan County in the northern province
of Hebei.

It will be some time before the new deposit will begin to yield iron ore, but the discovery will
definitely enable China to make long-term plans on steel production and strengthen its hands
in price negotiations. The discovery gives a new boost to China’s ongoing efforts to reduce its
dependence on major world suppliers and avoid getting caught in price fluctuations of the spot
market. Indian suppliers mostly deal in the spot market and refuse to enter into long-term
supply contracts.
EDUCATION
Scholarship scheme for minority students
The Union government has launched the Maulana Abul Kalam Azad National Fellowship Scheme
for minority students and another one to computerise State Wakf Boards.

Under the scheme, 756 fellowships (30 per cent to be reserved for women) will be offered per
year to minority students wishing to pursue higher studies. The objective is to grant integrated
five-year fellowships in form of financial assistance to students from minority communities as
notified by the Central government to pursue MPhil and PhD.

The scheme will cover all universities or institutions recognised by the UGC under Section 2 (f)
and Section 3 of the UGC Act and will be implemented by the Ministry of Minority Affairs
through UGC for students belonging to minorities.

The fellowships will be on the pattern of UGC fellowships awarded to research students
pursuing regular and full time MPhil and PhD courses. Holders of the new fellowship will be
called MoMA scholars.

ELECTIONS
Soren forms government in Jharkhand
Jharkhand Mukti Morcha chief Shibu Soren has been elected as the Chief Minister of Jharkhand
after successful conclusion of the
Assembly pools in December 2009. The JMM, which won 18 seats, garnered the support of the
BJP-JD(U), the All Jharkhand Students Union and Jharkhand Janadhikar Manch led by Bandhu
Tirkey, taking up the tally to 44 MLAs in a house of 80.

The BJP won 18 seats and the JD(U) 2 seats, All Jharkhand Students Union has 5 MLAs and the
Jharkhand Janadhikar Manch has one MLA.

The decision by JMM to enter into a coalition with the BJP-JD(U) combine brought to a close
the hectic lobbying that marked the three days since the Jharkhand elections threw up a hung
Assembly.

The Congress attacked the post-poll alliance between the BJP and the JMM as “the high point
of unprincipled and unethical politics”. “Till yesterday, Arun Jaitley and BJP were crying
hoarse about Shibu Soren’s criminal past but today they have no compunction about aligning
with a man who is being tried in three murder cases, including one which is coming up for
hearing as early as January 5, 2010,” party spokesman Manish Tewari said.

This is the third time the Mr Soren has occupied the post of Jharkhand Chief Minister. As per
the ministry-sharing formula worked out among the alliance partners, JMM and BJP will have
five ministers each in the team while AJSU will have a quota of two. BJP, which has also been
allowed to have its own man as the Assembly Speaker, has decided to part with one ministerial
berth from its share for its alliance partner JD(U).

Mr Soren, who was a Lok Sabha member before taking over as the Chief Minister, will have to
become an MLA within six months. Wiser from the humiliation suffered in January 2009, when
he had to quit the post after losing the by-election to the Tamar seat, the JMM chief is likely to
enter the fray from his family backyard Dumka. His son Hemant, had won the constituency in
the Assembly polls, is likely to vacate the seat in favour of his father, and retain the Rajya
Sabha membership.

Jharkhand Assembly ‘Safe Haven’ For Criminals

The politician-criminal nexus in India is alive and kicking. Proof of this was provided by the
profile of the newly elected MLAs in Jharkhand. As many as 31 of the 45 legislators backing the
JMM-BJP-AJSU coalition government have criminal cases pending against them.

Its not just the ruling coalition which is afflicted with this malaise. The Opposition benches in
the State too have several MLAs with criminal antecedents, making it clear that the process of
criminalisation of politics is proceeding unhindered. Chief Minister Shibu Soren, who had to quit
the Union Council of Ministers a few years ago after being convicted in a murder case, leads
the contingent. Besides him, 16 of the 18 JMM MLAs have criminal cases against them. The only
party MLA who starts with a clean slate is Sita Soren, daughter-in-law of Mr Shibu Soren and
widow of the late Durga Soren.

BJP and AJSU have eight and four MLAs, respectively, with criminal cases against them. One
JD(U) legislator and the lone JJM legislator Bandhu Tirkey also has criminal cases against him.
Mr Tirkey, a former minister, in fact, is presently languishing in jail as he’s one of the key
accused in the great Jharkhand loot undertaken by the Madhu Koda government.

JMM’s Dumri MLA Jagannath Mahato has been booked in 14 criminal cases while Mr Shibu
Soren’s son Hemant has six cases against him.

BJP’s Jharkhand unit president Raghubar Das also has criminal cases against him while C.P.
Singh, the fourth-term MLA from Ranchi, has nine cases against him.

As many as 11 of the 14 Congress MLAs also have cases against them, while eight JVM (P) and
four RJD MLAs have cases lodged against them.

Gujarat Assembly passes mandatory voting Bill

The Gujarat Assembly has passed a landmark Bill which makes, for the first time in the
country, voting mandatory in local body polls. The Gujarat Local Authorities Laws
(Amendment) Bill, 2009, which also seeks to raise the reservation of seats for women in local
self governance bodies from 33 to 50 per cent, was passed by voice vote. Under the Bill, if a
voter fails to vote for the reasons other than prescribed in the rules, he may be declared a
“defaulter voter” and would face consequences for which rules will be framed and placed
before the Assembly for its approval later.

LEGISLATION
Authors can now claim royalty
Authors of musical, cinematographic and literary works may now be entitled to royalty in case
their works are used for commercial purposes, a benefit denied to them so far. This can be
possible because of certain amendments in the Copyright Act of 1957, which has been
approved by the Union Cabinet for introduction in Parliament.

The amendment is proposed to give independent rights to authors of literary and musical works
in cinematography of films, which were hitherto denied and wrongfully exploited by producers
and music companies.

Another amendment ensures that the authors of the works, particularly songs included in the
cinematography of films or sound recordings, receive royalty for commercial exploitation of
such work.

The News Broadcasters Association had been apprehensive about the amendments and asked
the government to ensure that nothing was done to hurt the “well-established and understood
rights of broadcasters to fair use of material, including broadcast reproduction rights”.

POLITICAL
Advani steps down as Leader of Opposition
The curtain came down on L.K. Advani’s tenure as Leader of Opposition in Lok Sabha on
December 18, 2009. And while he made way for Sushma Swaraj, the 82-year-old veteran BJP
leader said he saw a new chapter opening in his political career.

After a meeting of BJP parliamentary party amended its constitution, Advani was elected
chairman, a post that has been created for him. The assembled party MPs then elected Swaraj
as leader of the party in LS, the first woman to hold the post in BJP.

The next act in the generational change was played out on December 19, when Rajnath Singh
stepped down as BJP President and Maharashtra unit chief Nitin Gadkari took charge. The
change of guard completed a process that had been in the works since the party lost its bid for
power in 2009 national elections.

Sushma Swaraj, at 57, clearly marks a generational change as does 52-year-old Gadkari. Advani
is expected to play a role as mentor and the amended constitution says he will appoint the two
leaders of Opposition.

Nitin Gadkari is the youngest BJP president. His elevation marks the culmination of the
exercise to effect a generational shift at the top in the party hierarchy—both in its
organisational and parliamentary wings.

Mr Gadkari assumes his new responsibility at a very crucial time. After tasting defeat in a series
of electoral battles, cadre morale is low. The party was also bogged down by a debilitating
infighting among the so-called second generation leaders. The BJP has also failed to keep pace
with the changing times, and lost the trust of the youth and the burgeoning urban middle class
in the process.

Mr Gadkari, who hails from Nagpur and over the years cultivated the image of an honest, hard-
working leader who has toiled his way to the top, thus has task cut out.

FOREIGN RELATIONS
India-Bangladesh pacts to tackle terrorism
On December 2, 2009, India expressed its gratitude to Bangladesh for taking speedy action to
foil a conspiracy by the LeT to attack the Indian mission in Dhaka recently as the two countries
finalised three key agreements to combat terrorism. The agreements were signed during the
visit of Bangladesh Prime Minister Sheikh Hasina to New Delhi.

The two sides arrived at an agreement on: Mutual legal assistance in criminal matters,
combating international terrorism, organised crime and illicit drug trafficking; and agreement
on transfer of sentenced persons. However, the two sides have not yet been able to resolve
differences over a bilateral extradition treaty.

The finalisation of the three accords marks a major confidence-building measure (CBM) to
address the issue of Indian insurgents taking shelter in Bangladesh, which had marred ties
between the two nations in recent years. New Delhi, however, is quite happy over the manner
in which the Sheikh Hasina government has been cooperating with it in checking the activities
of these insurgents.

Visit of Bhutanese King

Increasing the pace of cooperation in the hydro-power sector, India and Bhutan have signed
four agreements to conduct technical surveys for hydro-power projects. The four MoUs related
to the hydro-power sector were part of 12 agreements that were signed after discussions
between Prime Minister Manmohan Singh and visiting Bhutanese King Jigme Khesar Namgyel
Wangchuck, who was on his first foreign visit in December 2009, since his coronation in 2008.

India and Bhutan have decided to prepare detailed project reports for the Kuri Gongri,
Chamkharchhu-1 and Kholongchhu hydro-power projects and Amochu reservoir project. The
Kuri Gongri project is proposed to generate 1,800-mw power, the Chamkharchhu-1 670 mw and
the Kholongchhu 670 mw. Further, the two sides have also agreed to conclude implementation
agreements for Punatsangchhu-2 project

Bhutan uses 400 mw and has an installed capacity of 1,500 mw of power. The entire surplus
comes to India which is helping Bhutan increase its capacity to 10,000 mw till 2020.

Apart from the MoUs on the hydro-power projects, the two sides also signed eight other
agreements in areas ranging from agriculture to health to civil aviation. The two sides also
signed an agreement to set up the Bhutan Institute of Medical Sciences in Thimphu and an
agreement on an IT project, which plans to make nearly half of Bhutan’s population e-literate.

Visit of Japanese Prime Minister

Prime Minister Yokio Hatoyama of Japan visited New Delhi in end-December 2009. During the
high-level talks, Japan urged India to sign the Comprehensive Test Ban Treaty (CTBT), but
Prime Minister Manmohan Singh put the onus for its ratification on China and the US.

The issues of nuclear disarmament and non-proliferation were discussed with both sides
agreeing to the need for an early start to the Fissile Material Cut-off Treaty negotiations. But
on the issue of the non-proliferation treaty both sides agreed that there was a difference of
perception. Mr Singh reiterated that India is “deeply interested in working with Japan and
other like-minded countries to promote the cause of universal, verifiable and non-
discriminatory disarmament”.

Even though Mr Singh highlighted India’s “impeccable record” in non-proliferation and

explained the country’s nuclear history, the Japanese Prime Minister remained non-committal
on civilian nuclear cooperation between India and Japan. Keeping the matter pending, Mr
Hatoyama said nuclear energy would be an item on the agenda for future discussions.
In the absence of an agreement on nuclear cooperation, the Japanese Prime Minister,
however, indicated that Japan is willing to relax restrictions on hi-tech trade and said there
was a “positive conclusion” on the issue of hi-tech trade. During talks, Mr Singh assured his
Japanese counterpart that Indian companies would not divert hi-tech imports from Japan for
weapon’s purposes or to a third country and sought liberalisation in this area.

The economic partnership, however, remained the “bedrock” of relationship, with both sides
discussing a range of economic issues, including Japanese investment and trade agreement.
The two Prime Ministers have decided to push their negotiators to expedite negotiations into
the comprehensive economic partnership agreement.
Mr Hatoyama pointed out that bilateral trade between India and Japan is far less than that
between Japan and China. Mr Singh, however, said he had conveyed to the Japanese Prime
Minister that India welcomes Japanese investments into the country and pointed out that
India’s growing economy offers huge opportunities for Japan.

The two sides also discussed the liberalisation of visa regime on both sides, with the Japanese
Prime Minister raising the issue saying that it was important as there were several major
projects being undertaken in India for the benefit of both countries.

The two leaders also vowed to push for an early conclusion of an economic partnership
agreement to scale up trade and investment and cooperate on a range of global issues,
including the UN reforms, climate change and nuclear disarmament

India, Japan sign agreements on Rs 360-kcr DMIC project: India and Japan signed two
agreements on December 28, 2009 for implementing the ambitious Rs 3,60,000-crore Delhi-
Mumbai Industrial Corridor (DMIC) project that seeks to create integrated investment regions
and industrial areas across six States. The agreements include collaborating in the development
of eco-cities, that is cities that are environmentally and ecologically sustainable, along the
corridor and setting up of a project development fund to undertake activities like master
planning and feasibility studies, preparing project reports and obtaining approvals and bid
process management for projects.

The Delhi-Mumbai Industrial Corridor Development Cooperation has signed the memorandum of
understanding with Jetro (in cooperation with Japan Bank for International Cooperation) for
facilitating collaboration between Japanese and Indian companies from environment-related
sectors and providing expertise in development and promotion of DMIC projects.

The DMIC project development fund will be set up with equal contribution from the
governments of India and Japan. India has approved a grant of Rs 330 crore (approximately $75
million) as the country’s contribution. The Japanese component of $75 million is being
provided in the form of untied loan from JBIC.

Visit of Prime Minister Manmohan Singh to Russia

On December 7, 2009, during the visit of Prime Minister Manmohan singh to Moscow, relations
between India and Russia experienced more than a thaw on a range of interests encompassing
N-trade, shared Af-Pak perceptions and a plan to boost commerce to $20 billion by 2015.

The discussions between Prime Minister Manmohan Singh and Russian President Dmitri
Medvedev yielded a rich cache of agreements which included establishing a credit line of $100
million and a nuclear agreement that allows India to reprocess fuel and virtually guarantees
unhindered supply of nuclear fuel.

Prime Minister Manmohan Singh, after signing a crucial nuclear deal with Russia, said there
would be an addition to the two reactors being developed at Kudankulam in Tamil Nadu, while
a site was being considered at Haripur in West Bengal.

Meanwhile, Russian President Medvedev stressed that Moscow did not support any addition to
the club of N-weapon States, which has implications on the country’s position in Iran, and that
N-weapons should not be "held hostage to terror", in a fairly direct reference to Pakistan.

Medvedev also made it clear that the G-8 statement at La Aquila did not impact on ENR
(enrichment and nuclear reprocessing) related agreements with India.

The continuing global slowdown and a decline in oil prices have made Russia more open to
reaching out to an old friend while the change of guard in US has seen India reaffirm ties, with
Singh describing Russia as a “global world power”. The two nations also share concerns over
the rise of China.

With the meeting with Medvedev having set the mood, Manmohan Singh’s interaction with
Prime Minister Putin, still very much the “real” power centre in Moscow, saw a detailed
exchange of assessments.

The two sides signed a total of six agreements but the Russians were clearly pleased with the
civil nuclear cooperation pact. The reactors, which cost about $1.5 billion each, will certainly
be welcome for a Russian economy that is simply not doing too well.

India and Russia signed a path-breaking broad-based agreement in civil nuclear field that will
ensure transfer of technology and uninterrupted uranium fuel supplies to its nuclear reactors
and inked three pacts in the defence sector.

The Indo-Russian pact on atomic cooperation is a significant document and goes much further
than the 123 agreement between India and the US. The pact also has provisions for transfer of
enrichment and nuclear technology, which is denied in the 123 agreement with the US.

The two countries also reviewed their cooperation in the United Nations and in multilateral
fora and their role towards successful conclusion of the Copenhagen Summit on climate
change.

RESERVATIONS
Ranganath Commission report on Religious and Linguistic Minorities
Two years after it was submitted to the government, report of the National Commission on
Religious and Linguistic Minorities is ready to be tabled in the Parliament.

Constituted to assess the status of minorities and suggest ways of improving their lot, the
Commission, headed by Justice Ranganath Misra, has recommended 15 per cent reservation in
non-minority educational institutions and Central and State government jobs for all religious
and linguistic minorities.

Out of the 15 per cent earmarked seats in education institutions, Muslims should be given 10
per cent reservation (commensurate with their 73 per cent share in the total minority
population in India) and the remaining 5 per cent to other minorities, states the report.

It adds that if Muslim candidates are not available to fill 10 per cent seats, the remaining
vacancies should go to other minorities and in “no case to the majority community.”On
employment front, the report argues that since the minorities, especially Muslims, are much
under-represented in government jobs, “we recommend they should be regarded as backward
in this respect within the meaning of that term as used in Article 16 (4) of the Constitution.”

Accordingly, the recommendation is to reserve 15 per cent of posts in all cadres and grades
under the Central and State governments for the religious and linguistic minorities. Of this, 10
per cent quota is recommended for Muslims and the rest for other minorities.

The report, co-authored by Tahir Mahmood, also recommends the inclusion of Muslim and
Christian Dalits in SC list, something the National Commission for Minorities has also been
supporting.

TERRORISM; LAW & ORDER

ULFA chief held in Bangladesh
In the most serious setback that has been suffered by the banned United Liberation Front of
Assam (ULFA) in recent times, its chairman Arabinda Rajkhowa was arrested by Bangladeshi
agencies somewhere near Dhaka in Bangladesh on December 2, 2009.

The arrest which came close on the heels of November 5 arrest of another two top leaders of
the outfit, Sashadhar Choudhury and Chitrabon Hazarika, in Dhaka indicated that the outfit’s
sanctuary in Bangladesh was in serious danger.

With Rajkhowa’s arrest, only two major leaders of the outfit, self-styled commander-in-chief
Paresh Barua and deputy commander in chief Raju Baruah, are now at large. Another top
leader, general secretary Anup Chetia, alias Golap Barua, is lodged in a jail in Bangladesh.

Arabinda Rajkhowa (53) whose real name is Rajib Rajkonwar, has been the chairman of the
ULFA since early 1980s and was one of the founder leaders of the ULFA. He studied up to Class
XII, and is the second of three sons of freedom fighter Umakanta Rajkonwar who passed away
three years ago at the age of 101 years. He hails from Lakwa in Sivasagar district of Upper
Assam.
Rajkhowa also has an Interpol red corner notice against him, issued on June 4, 1997 for his
involvement in several heinous crimes. Out of India since 1992, Rajkhowa is known to keep
travelling to Myanmar, Bhutan, Thailand, Bhutan, Pakistan and other countries on fake identity
and fake passports.

He was trained under Kachin Independence Army in Myanmar and National Socialist Council of
Nagaland (NSCN). He can handle all types of arms. He is also the vice-president of the Indo-
Burma Revolutionary Front (IBRF).
BOXING
WBC World Heavy-weight Title
Vitali Klitschko retained his title, winning a unanimous points decision against
American challenger Kevin Johnson. The 38-year-old Ukrainian spent the entire fight
on the offensive against previously unbeaten Johnson but could not find his customary
knockout as his opponent opted for survival.

Suranjoy wins gold at President's Cup boxing

Asian champion Suranjoy Singh has become the first Indian boxer to clinch a gold
medal at the inter-continental President's Cup. He out-punched Frenchman Nordine
Oubaali 8-1 in the flyweight (51kg) final, in Baku, Azerbaijan. The 22-year-old
Manipuri's triumph also fetched him US $3,000 at the prestigious season-ending event,
where confederations from Asia, America, Africa, Europe and Oceania are pitted
against each other.

CHESS
Asian Team Championship, 2009
India-A men’s team overwhelmed Sri Lanka to annex the gold in the Tata Steel Asian
Team Chess Championship which concluded at Kolkata. Vietnam took the silver while
Iran had to be content with the bronze. In the women’s section, Vietnam crushed
Nepal 4-0 to total 11 points and win the gold.

National Premier Title

Baskaran Adhiban won the title with a round to spare in match against Abhijeet Gupta
of PSPB. Adhiban also bagged his first Grandmaster norm in the process, something
which he had narrowly missed thrice in the last two years.

CRICKET
Australia-West Indies Test series
Australia survived a tense final session to force a draw against the West Indies in an
absorbing second Test at the Adelaide Oval.

Australia triumphed over a never-say-die West Indies inside four overs on the final day
to win the third and final Test by 35 runs, and win the three-Test series 2-0. The West
Indies came into the final day requiring 51 more runs for the unlikeliest of victories
with Nos. 10 and 11 at the crease, but were eventually dismissed for 323.

South Africa-England Test series

Last man Graham Onions played out a tense final over from Makhaya Ntini as England
escaped with a draw on the fifth and final day of the first Test against South Africa at
Centurion.

Graeme Swann took five for 54 as England wrapped up victory by an innings and 98
runs on the fifth day of the second Test against South Africa at Kingsmead.

Australia-Pakistan Test Series

Chasing a mammoth total of 422 runs, Pakistan had a daunting task of surviving the
penultimate day of the first Test match at Melbourne, and Australian off-spinner
Nathan Hauritz made the task impossible with his maiden five wicket haul. Riding on
Hauritz’s splendid spell (5-101) Australia defeated Pakistan by 171 runs. For Aussie
captain, Ricky Ponting, the win was more special, as he has now captained the most
Test victories (42) than any other player in the world, and played in more wins (93).

India-Sri Lanka Test Series

India became the number one team in Test rankings after they spanked Sri Lanka by
an innings and 24 runs in the third and final cricket Test, played in Mumbai, to clinch
the three-match series 2-0.

India-Sri Lanka ODI series

The first match at Rajkot saw a flurry of 4s and 6s resulting in both teams together
scoring 825 runs in 100 overs, at a strike rate of 8.25 per over. In the end India just
managed to scrape through with a three-run victory. Batting first, India amassed 414
runs in 5 overs. It was the highest ODI total ever recorded on Indian soil. Lankans
finished at 411 for 8 in 50 overs, becoming first team ever to score 400-plus while
chasing and still lose.

Tillakaratne Dilshan’s power-packed century provided the perfect platform for the
visitors as Sri Lanka defeated India by three wickets in the second match at Nagpur to
level the series 1-1.

Gautam Gambhir hit 150 not out and Virat Kohli his first ODI ton as India beat Sri
Lanka by 7 wickets at Eden Gardens, Kolkata, taking an unbeatable 3-1 lead in the
five-match series.

The fifth and final match had to be abandoned because of the ‘dangerous’ pitch at
Feroze Shah Kotla ground in New Delhi. The controversy forced the DDCA to apologise
and the BCCI to disband the pitch committee headed by Daljit Singh.

India-Sri Lanka T20 series

Yuvraj Singh belted a whirlwind 60 and bagged three wickets to fashion a six-wicket
win for India in the second T20 International against Sri Lanka at Mohali. The win
enabled India to level the two-match series. Sri Lanka had defeated India by 29-run
loss in the first match in Nagpur.

India is ranked world number one

On December 6, 2009 millions of Indians were united in celebration as their team
ascended to the top of the ICC Test rankings after defeating Sri Lanka in the third and
final Test at Mumbai. Fittingly, the win that made it possible was marked by stand-out
performances from the men who have played a crucial role in India’s ascent. Virender
Sehwag has scored more runs than any other Indian batsman over the last 25 Tests—
played over a two-year period starting November 2007. His rollicking 293—at a pace
that left the bowlers ample time to finish the demolition job— proved pivotal as India
fulfilled its tryst with the top slot.

Harbhajan Singh and Zaheer Khan have been India’s highest wicket-takers during this
period. Both picked up six wickets apiece for the match, with Zaheer coming up with a
five-wicket haul to polish off the tail and take India to a comfortable win by an innings
and 24 runs.
Sehwag breaks records
Virender Sehwag has become the first Indian to post two double centuries against Sri
Lanka. He is also the first Indian batsman to rake-up 200 runs through boundaries
(202 runs in 40 fours and seven sixes). Only John Edrich (238 runs in 1965), Mathew
Hayden (218 runs in 2003) and Inzamam-ul-Haq (206 runs in 2002) have recorded
more runs through boundaries than Sehwag. He has also become the first Indian
batsman to share six double century stands for the first wicket in Tests.

FOOTBALL
FIFA World Player of Year
Argentine and Barcelona football star Lionel Messi has been named World Player of the
Year, while Portuguese and Real Madrid icon Cristiano Ronaldo has secured the Puskas
Goal of the Year gong.

SAFF title, 5th

India avenged their last edition title loss as they prevailed over Maldives 3-1 via
penalty shoot-out in the SAFF Championships summit clash to claim their fifth crown.
The championship was held in Dhaka, Bangladesh. After the match failed to produce
any goal in the regulation and extra times, the match was decided in a penalty shoot-
out.

HOCKEY
Champions Challenge, 2009
New Zealand defeated Pakistan 4-2 to lift the title. Earlier, Pakistan had defeated India
6-3 in the semi-finals.

Champions Trophy, 2009

Australia clinched the ABN AMRO Hockey Champions Trophy title in stunning fashion
beating Germany 5-3. Australia clinched the title for the second year in a row and had
won the title nine times earlier. The championship was held in Melbourne.

SHOOTING
Gagan shoots double gold in Asian event
Gagan Narang shot an individual gold and also helped India bag the team gold in the
Asian Air Gun Championships in Doha. The team comprising Narang, P.T. Raghunath
and Sanjeev Rajput won the gold with a score of 1782. The silver was won by China
(1779) while Iran (1764) bagged the bronze.

In the junior men’s air rifle, Chain Singh won the bronze. In the youth category,
Navdeep Singh Rathore shot 585 to qualify for the inaugural edition of the Youth
Olympics in 2010.

TENNIS
Davis Cup, 2009
Spain won its fourth Davis Cup title when Fernando Verdasco and Feliciano Lopez took
the doubles to give the team an unassailable 3-0 lead over the Czech Republic. Spain
also becomes the first country since Sweden in 1998 to retain the Davis Cup, after
triumphing in 2008 in Argentina.

WRESTLING
Commonwealth Free-style Championship
Indian women wrestlers put up a good show by winning three gold, four silver and five
bronze medals followed closely by Canada and Cameroon during the championship
 held at Jalandhar. Among Indian wrestlers Babita, Geeta and Alka Tomar won gold in
the 51, 55 and 59 Kg free-style wrestling.

Indian men grapplers put their opponents on the mat and put up a splendid show by
winning 14 medals. Hosts India won seven golds, three silver and four bronze in the
free style competition and clinched the team championship trophy.

BADMINTON
Senior National Badminton Championship, 74th
Chetan Anand claimed his fourth national title while Trupti Murgunde clinched her maiden one by
winning the men’s and women’s singles finals. There was more joy for Chetan as his wife Jwala
Gutta claimed a double by winning both the women’s and mixed doubles finals.

BASKETBALL
National Senior Championship, 60th
Indian Railways squeezed past hosts Punjab in men’s section to retain the men’s title. The women’s
title was also won by Indian Railways who defeated Delhi in final to retain the title.

CHESS
World Team championship
Russia won the gold with 24 points. India trounced Brazil in the ninth and last round to earn a
bronze. The championship was held at Bursa, Turkey.

CRICKET
Under-19 World Cup
Australia have become the first team to win the under-19 world cup thrice. They defeated Pakistan
by 25 runs to win the 2010 edition. The tournament was hosted by New Zealand.

Defending champions India finished sixth after being humbled by South Africa in the fifth place
play-off match.

Ranji Trophy, 2010

Defending champions Mumbai pulled off a thrilling six-run win over Karnataka to clinch the coveted
trophy for the 39th time.

Polly Umrigar Trophy

Delhi’s Vidya Jain Public School has claimed the trophy, symbol of supremacy in school cricket,
defeating Presidency School, Bangalore by 54 runs.

Bangladesh-Sri Lanka-India triangular series

Sri Lanka defeated India by four wickets to win the triangular one-day series final. India had made
245 batting first and Sri Lanka surpassed the target with nine balls to spare.

Bangladesh-India Test series

India clinched the first Test with an emphatic 113-run victory to take 1-0 lead in the two-Test
series.

South Africa-England Test series

England’s last pair of Graeme Swann and Graham Onions survived 17 balls to salvage a thrilling
draw in the third Test against South Africa and keep their side 1-0 ahead in the series.

South Africa won the fourth and final Test at Johannesburg by an innings and 74 runs to level the
series 1-1.

Australia-Pakistan Test series

Australia completed a remarkable Test victory over Pakistan, coming from 206 runs behind in the
first innings to win the second Test at SCG by 36 runs. Needing 176 for its first victory in Australia
in 14 years, Pakistan was bundled out for 139 runs.
Australia defeated Pakistan by 231 runs in the third Test, to win the three-Test series 3-0. This was
a record-equalling 12th successive win against Pakistan. The sequence, which began in November
1999, equals the longest victory string against a team in Test history. Shane Watson was declared
the Mon of the series.

Australia-Pakistan One Day series

Australia completed a series whitewash after defeating Pakistan by two wickets in the fifth and final
match, amid allegations of ball tampering by Shahid Afridi. Afridi was subsequently banned for two
T20 matches after pleading guilty to the charges.

Catching record of Dravid

Rahul Dravid is the first player ever to take 100 catches overseas for India. His overall tally of 193
catches in 139 Tests is a world record.

FOOTBALL
Federation Cup
West Bengal clinched the title by over-coming giant-killer Lajong FC of Shillong. The final was held
at Guwahati, Assam.

GOLF
Royal Trophy
Europe survived a dramatic fight-back to beat holders Asia and win the Royal trophy for the third
time.

TENNIS
Australian Open, 2010
Serena Williams defeated Belgium’s Justine Henin to win the women’s singles title for the fifth
time and her 12th Grand Slam title. With this win she drew level with Billie Jean King’s record of 12
Grand Slam wins.

Roger Federer beat Andy Murray to win his fourth Australian open men’s title, taking his own
Grand Slam titles record to 16.

Leander Paes, with partner Cara Black, won the mixed doubles title. This was his 11th Grand
Slam title, equalling Mahesh Bhupathi’s record of most wins by an Indian.

Mike and Bob Bryan won the men’s doubles title. The women’s doubles title was won by
Serena and Venus Williams.

Chennai Open, 2010

Defending champion Marin Cilic of Croatia retained the title with a victory over Switzerland’s
Stanislas Wawrinka.

ABBREVIATIONS
NKN: National Knowledge Network

AWARDS
Jeevan Raksha Padaks, 2010
Sarvottam Jeevan Raksha Padak: Braveheart Rukhsana Kauser and Delhi’s Narender Kaushik
(posthumously) have been selected for Sarvottam Jeevan Raksha Padak for their conspicuous
courage in saving life under circumstances of very great danger to the life of the rescuer.

Rukhsana, 22, had killed a top Pakistani militant and injured another at Kalsian village in Rajouri
district on the night of September 27 2009.

Uttam Jeevan Raksha Padak: The winners include Syed Areef Sujauddin from Andhra Pradesh,
Umman Antony from Kerala, Rajan Kamble from Maharashtra (all posthumously), besides Karanbir
Singh Kang from Maharashtra and Prachi Santosh Sen from Madhya Pradesh.

Kang, who lost his wife and two children in the 26\11 Mumbai attacks, had rescued many from Taj
hotel and never dithered from doing his duty.
Jeevan Raksha Padak series of awards are meant for meritorious act of humane nature in saving the
life of a person in three categories: Sarvottam Jeevan Raksha Padak, Uttam Jeevan Raksha PAdak
and Jeevan Raksha Padak.

Golden Globe Awards, 2010

Best Director: James Cameron for Avatar
Best Motion Picture (Drama): Avatar
Best Motion Picture (Musical or Comedy): The Hangover
Best Actor (Motion Picture Drama): Jeff Bridges for Crazy Heart
Best Actor (Motion Picture Musical or Comedy): Robert Downey Jr. for Sherlock Holmes
Best Actress (Motion Picture Drama): Sandra Bullock for The Blind Side
Best Actress (Motion Picture Musical or Comedy): Meryl Streep for Julie & Julia
Best Supporting Actor (Motion Picture): Christoph Waltz for Inglourious Basterds
Best Supporting Actress (Motion Picture): Mo’nique for Precious.
Best Screenplay: Jason Reitman, Sheldon Turner for Up In The Air
Best Original Score: Michael Giacchino for Up
Best Original Song: “The Weary Kind” from Crazy Heart
Best Foreign Language Film: The White Ribbon (Das Weisse Band - Eine Deutsche
Kindergeschichte) from Germany
Best Animated Film: Up

Dada Saheb Phalke Award, 2008

V.K. Murthy, the ace cinematographer of Guru Dutt’s films who is best known for his camera work in
Chaudvin ka Chand and Pakeezah, has been honoured with the award. He is the first
cinematographer to get the award.

National Film Awards, 56th

Best Film: Antaheen (Bengali)
Best Direction: Bala for Naan Kadavul (Tamil)
Best Popular Film Providing Wholesome Entertainment: Oye Lucky! Lucky Oye!
Best Children’s Film: Gubbachigalu (Kannada)
Best Film on Family Welfare: Little Zizou (English, Gujarati)
Best Actor: Upendra Limaye for Jogwa (Marathi)
Best Actress: Priyanka Chopra for Fashion (Hindi)
Best Supporting Actor: Arjun Rampal for Rock On!! (Hindi)
Best Supporting Actress: Kangana Ranaut for Fashion (Hindi)
Indira Gandhi Award for Best First Film of a Director: A Wednesday (Hindi)
Nargis Dutt Award (for Best Feature Film on National Integration): Aai Kot Nai (Assamese)
Best Child Artist: Shams Patel
Best Cinematography: Avik Mukhopadhyay for Antaheen (Bengali)
Best Screenplay: Sachin Kundalkar for Gandha (Marathi)
Best Art Direction: Gautam Sen for Firaaq
Best Make-up Artist: V. Moorthy for Naan Kadauul (Tamil)
Best Costume Design: Neeta Lulla for Jodhaa Akbar
Best Music Direction: Ajay Atul for Jogwa (Marathi)
Best Lyrics: Antaheen (Bengali)
Best Male Playback Singer: Hariharan for Jogwa (Marathi)
Best Female Playback Singer: Shreya Ghoshal for Antaheen (Bengali)
Best Choreography: Chinni Prakash and Rekha Prakash for Jodha Akbar
Best Audiography: Pramod J. Thomas for Gandha (Marathi)
Best Editing: A. Sreekar Prasad for Firaaq (Hindi)
Best Special Effects: Govardhan (Tata Elxsi) Mumbai Meri Jaan (Hindi)
Special Jury Award/Special Mention (Feature Film): Bioscope

Republic Day Awards, 2010

Padma Vibhushan: Nobel laureate of Indian origin Venkatraman Ramakrishnan, Apollo Hospitals
chief Pratap Reddy, former RBI Governor Y.V. Reddy, Zohra Segal, Ebrahim Alkazi and noted
Mridangam Carnatic artist Umayalpuram K. Sivaraman.

Padma Bhushan: Music maestro A.R. Rahman, Music maestro Illaiyaraaja, Bollywood actor Aamir
Khan and controversial Indian origin businessman Sant Singh Chatwal, Prime Minister Manmohan
Singh’s cardiac surgeon R.M. Panda, eminent neurosurgeon Satya Paul Agarwal, prominent
industrialist from Punjab S.P. Oswal, Manvinder Singh Banga, eminent journalist Fareed Zakaria and
real estate czar K.P. Singh were among the 43 winners.

Padma Shri: Cricketer Virendra Sehwag, hockey player Ignace Tirkey, Formula One driver Narain
Kartikeyan, badminton star Saina Nehwal, boxer Vijender Singh, Sachin Tendulkar's 'guru'
Ramakant Achrekar, Yesteryear Bollywood diva Rekha, Oscar winner sound recordist Resul Pokutty
and actor Saif Ali Khan were among 83 winners.

Bravery Awards, 2010

Kirti Chakra: Rukhsana Kausar and her brother Aijaz Ahmad have been awarded the second
highest gallantry award in peacetime, for their act of bravery in killing a Lashkar-e-Taiba (LeT)
commander in their Morha Kalsi village in Jammu and Kashmir in 2009.

Tagore Literature Award, 2009

Noted Kashmiri poet Naseem Shafai has been conferred the prestigious “Tagore Literature Award”
by the Sahitya Akademi for her outstanding contribution in Kashmiri literature, especially poetry.

The award has been instituted by the Akademi at the initiation of the Korean government and the
Embassy of Korea in Delhi.

Nasem was selected for this honour for her poetic collection, “Na Thsay Na Aks” (Neither shadow
nor reflection). She has become the first women poet from Kashmir to be honoured by the Akademi.
This was the second collection of Naseem’s poetry after “Derche Machrith” (open windows) in 1999.

CYBER SPACE
Gmail adopts new protocol to encrypt data
Google has introduced a mandatory secure encryption for all users of its free email service Gmail,
which will make it more difficult for hackers to break into the email accounts.

Gmail will now be accessible through what is known as the hypertext transfer protocol secure or
HTTPS on internet, instead of the HTTP protocol which it was using earlier.

Under the new protocol, email data travelling between a user’s browser and Google computer server
will be encrypted, making it tougher for the hackers sitting on unprotected Wi-Fi to break into the
user’s accounts.

For users, the new encryption would result in higher level of security, similar to an online banking
transaction. Hackers would also find it more challenging to steal credit card and bank statements
stored by Gmail users in their mailboxes.

Thousands of users in the government departments and corporate sector across the world use
Gmail for transferring official emails or storing bank confidential information. With this enable-ment,
loss of such information or hacking of Orkut or Gmail accounts is likely to become less frequent.
Many government of India documents also get exchanged through Gmail. The ministry of external
affairs has, however, banned use of such private email providers for official use.

DEFENCE
India planning to buy C-17 Globemaster-III strategic aircraft from USA
India is set to buy 10 C-17 Globemaster-III giant strategic aircraft, each of which comes for about
$220 million. The four-engine C-17 is capable of carrying payload of up to 78 tonnes, transport
tanks and air-drop more than 100 combat-ready paratroopers directly into a battle-zone.

It can cover 2,400 nautical miles at a stretch and with mid-air refuelling it can go even longer
distances. The plane has the capability to take off and land on 3,000 feet or less runway, as also on
a semi-prepared runway.

EXPEDITIONS
Climate expedition to Antarctica
On January 11, 2010, an Indian team set sail on the first Southern Ocean expedition after the
Copenhagen meet — the fourth to be taken up by the National Centre for Antarctic & Ocean
Research (NCAOR), Goa — to study, among other things, climate change and its impact on life.
It will also be the first time Indian scientists will be crossing the 55 degrees South latitude to go
almost up to the polar region on an Indian vessel.

Sagar Nidhi, the only Indian vessel that can cut through ice, left Goa with 25 scientists for Mauritius
and head farther southwards on a voyage that will last till April 2010.

The scientists will take up about 20 studies in the ocean between 35 and 66 degrees South
latitudes. Prominent among them would be paleo-climatic studies that involve collecting samples
from the ocean bed at a depth of up to six kilometres.

Changes in sediment formation, water mass and other parameters would be compared with
previous data to ascertain the impact of climate change.

PERSONS
Basu, Jyoti
The CPM patriarch and former Chief Minister of West Bengal, he died on January 17, 2010 at the
age of 95. The “colossus of Indian politics” left behind a void that will be hard to fill, not only in the
Left but also national politics.

He was born on July 8, 1914 in Kolkata. In 1935 he graduated from the Presidency College of
Kolkata with honours in English. Then he went to London to study law and it was here that he was
influenced by Communism. In 1940 he joined the then undivided Communist Party of India.

He was one of the founder-members of CPM in 1964. In 1977 he became the Chief Minister of West
Bengal and continued to hold the office for 23 straight years, making him the longest-serving Chief
Minister in India. He quit as Chief Minister in November 2000. His major achievements as Chief
Minister of West Bengal were rural land reforms and entrenching of the Panchayati Raj institutions.
Jyoti Basu played a major role in formation of coalition governments at the Centre in 1989, 1996,
1997 and 2004. In 1996, he narrowly missed out on becoming Prime Minister of India after his
party’s veto.

Murthy, V.K.
V. K. Murthy is the first cinematographer, and second Kannadiga after Kannada movie icon Dr Raj
Kumar, to get the Dada Saheb Phalke award for his contribution to the film industry. He is known
for his work in most Guru Dutt films like Sahib Biwi Aur Ghulam, Kaagaz Ke Phool and Pyaasa.

Besides Guru Dutt, Murthy also worked with Pramod Chakravarthy (Naya Zamana, Jugnu), Kamal
Amrohi (Pakeezah) and Shyam Benegal (Bharat Ke Khoj, a television series).

He also shot India’s first cinema-scope movies, Kagaz ke Phool and is also one of the pioneers of
colour cinematography.

Singh, Gen Vijay Kumar

He has been appointed as the chief of Indian Army. He was born on May 10, 1951, in Bapada village
of Haryana. His grandfather—Mukh Ram—was also a soldier, who rose to the rank of Risaldar Major.
His father Jagat Singh also joined the Army and retired as a Colonel.

Gen V.K. Singh, an infantry man, was commissioned into the Rajput Regiment in 1970. During his
long career he has participated in the 1971 operations against Pakistan and the IPKF operations in
Sri Lanka in 1988. His last posting before taking over as army chief was as the Eastern Army
Commander, Kolkata. Prior to that, he commanded vital Ambala-based 2 Strike Corps of the Army.

He is also an honours graduate of the US Army Infantry School, Georgia. He studied at the Defence
Services Staff College, the Army War College and the US Army War College, Carlisle.

PLACES
Bengaluru
The Electronic Warfare India Conference (EWIC) was held in Bengaluru. This was the first
international conference on electronic warfare to take place in India.

Burj Khalifa
On January 4, 2010, blazing fireworks and dazzling lights marked the opening of the world's tallest
tower, Burj Khalifa, formerly known as Burj Dubai. The $1.5 billion, 818 metres (2,684 feet) high
structure is an “unprecedented” engineering marvel.

Burj Khalifa has been designed to be the centrepiece of a large-scale, mixed-use development that
will include 30,000 homes, nine hotels, 7.4 acres of parkland, at least 19 residential towers, the
Dubai Mall, and the 30-acre man-made Burj Khalifa Lake.

With more than 160 stories, Burj Khalifa holds the following records:
• Tallest building in the world
• Tallest free-standing structure in the world
• Highest number of stories in the world
• Highest occupied floor in the world
• Highest outdoor observation deck in the world
• Elevator with the longest travel distance in the world
• Tallest service elevator in the world

Not only is Burj Khalifa the world’s tallest building, it has also broken two other impressive records:
tallest structure, previously held by the KVLY-TV mast in Blanchard, North Dakota, and tallest free-
standing structure, previously held by Toronto’s CN Tower. The Chicago-based Council on Tall
Buildings and Urban Habitat (CTBUH) has established three criteria to determine what makes a tall
building tall. Burj Khalifa wins by far in all three categories.

The building has returned the location of Earth's tallest free-standing structure to the Middle East —
where the Great Pyramid of Giza claimed this achievement for almost four millennia before being
surpassed in 1311 by Lincoln Cathedral in England.

Davos
Over 2500 global leaders in business and politics gathered in Davos, Switzeraland, for the World
Economic Forum. Davos is located on the Landwasser River, in the Swiss Alps, between the Plessur
and Albula Range. At 1,560 meters, it is the highest city in Europe.

Haiti
The capital of this tiny island nation, Port-au-Prince, was hit by an earthquake measuring 7.0 on the
Richter scale on January 13, 2010. More than three lakh people perished in the tragedy.

The earthquake caused major damage to Port-au-Prince, Jacmel and other settlements in the
region. Many notable landmark buildings were significantly damaged or destroyed, including the
Presidential Palace, the National Assembly building, the Port-au-Prince Cathedral, and the main jail.
Among those killed were Archbishop of Port-au-Prince Joseph Serge Miot, and opposition leader
Micha Gaillard. The headquarters of the United Nations Stabilization Mission in Haiti (MINUSTAH),
located in the capital, collapsed, killing many, including the Mission’s Chief, Hédi Annabi.

Jaipur
Who’s who of the literature world descended on Jaipur in January 2010 to attend the Jaipur
Literature festival.

RESEARCH
Super lozenge as cure for cold to H1N1
In a breakthrough, Australian scientists have developed a drug that prepares the immune system to
effectively fight all cold and flu infections, including swine flu virus. The Veldona lozenge, which
tastes like a sweet and dissolves in the mouth, prepares the immune system to attack every cold
and flu virus.

The drug, that could be taken once a day before breakfast, would prevent everyday sniffles in
otherwise healthy people and life-threatening infections in the elderly.

The lozenge contains tiny amounts of interferon alpha—a protective protein that the body naturally
makes when attacked by a virus. When the lozenge dissolves in the mouth, the protein is released,
tricking the immune system into thinking there is a virus in the body and gets ready for a fight.

Once the trial results are positive, the drug can be made available over-the-counter in the next two
years. It would cost just around Rs 9 a pill.
SPACE RESEARCH
NASA’s WISE probe
Nasa has published the first images from its Wide-field Infrared Survey Explorer, or WISE, which
has been scanning the skies since January 2010.

The images include a comet, a "star factory" 20,000 light years away in our Milky Way galaxy and
our nearest large neighbour, the Andromeda spiral galaxy.
Wise will search on until October when its supplies of frozen coolant for chilling instruments will run
out.

The Wide-field Infrared Survey Explorer (Wise) had blasted off from Vandenberg Air Force Base in
December 2009. The probe is expected to uncover objects that have never seen before, including
some of the coolest stars and the most luminous galaxies.

The $320m mission will do this by scanning the entire sky in infrared light with sensitivity hundreds
of times greater than ever before.

Indian scientists discover a large cave on the Moon

Human habitation or a permanent base on the Moon could soon be a reality. After the discovery of
water, scientists analysing the data of Chandrayaan-I have now found a large cave on the lunar
surface, which could possibly act as a natural shelter for humans.

This is an empty volcanic tube, measuring about two kilometre in length and 360 meters in width.
Such wide tunnels could sustain underground lunar outposts, while the ceilings could help protect
astronauts from space radiation, meteoroid impacts and wild temperature fluctuations (up 300
degree centigrade) that is commonplace on the lunar surface.

There are similar lava tubes on Earth. They are formed when molten rock, flowing from a volcanic
eruption, cools and hardens on top while the lava underneath continues to flow. If the lava drains
completely, a cavern is left. Scientists had long suspected that such rock formations existed on the
moon, but lacked evidence until now.

The findings happened while the data from the TMC (Terrain Mapping Camera) was being analysed.
The TMC was one of the five Indian payload that was on-board Chandrayaan-I.

MISCELLANEOUS
Algorithm trading
The rising number of brokerages with algorithm, or computer programme-driven trading, may turn
out to be a second turning point in Indian markets after the introduction of electronic trading a
decade-and-a-half ago, which closed about 20 stock exchanges and many local brokerages, but
expanded the trading community and volumes by leaps and bounds.

The National Stock Exchange, which controls more than three-fourths of the trading volumes, has
approved applications of 200 of its members, roughly a fourth, to trade using algorithms.

Algorithmic trading refers to automated trades executed through software programs which do not
require humans to place orders. There could be thousands of programs written to buy or sell a
security, currency or commodity at a particular level when one or more factors emerge. Those
programs are so fast that people who look at various developments and decide trade would be left
way behind because a machine has done it in milliseconds.

For example, a program could be to sell the stock futures of a particular company and buy the stock
if the futures price is x% higher than the stock price. Also, it could be to compare a set of variables
—if rupee is more than 45 to the dollar, and crude oil is less than $60 per barrel—then the software
would sell Infosys futures and buy HPCL shares.

Other than investors who buy for a long term and traders who buy and sell on a daily basis to profit
from minor movements, there’s a section, called arbitrageurs, which looks to benefit from
distortions in prices despite public information.

Profits from arbitrage have slumped in the past decade as investors across the country have access
to same stock prices unlike in the past where various cities had different prices at a given time for
the same share. Also, the common trading cycles between the National Stock Exchange and the
Bombay Stock Exchange shrank arbitrage.

Now, with software programs taking over trading, it may well just disappear.

While trading volumes could surge as fat-cat brokerages hire maths wizards from the best of
institutions, it could lead to severe disturbances in the market as was the case during the credit
crisis. Some experts have said the credit crisis was accentuated by algorithmic trading which
triggered millions of trades due to fast-evolving developments. However, some like Goldman Sachs
and JPMorgan, with superior programs, have reportedly benefited through trading even during the
crisis.

Algorithmic trading can create a class conflict too between haves and have-nots of technology.
There could be charges of discrimination if two members of the same exchange are not on an equal
footing. Even some US legislators are planning to restrict high-speed trading.

In India it may not immediately lead to a surge in volumes since Indian markets still don’t have the
depth of the western markets and related markets, such as commodities and currency are
controlled.

Indian invention Infibeam Pi to give competition to Amazon’s Kindle

On January 28, 2010, Vishal Mehta announced the Infibeam Pi, an e-book reader that looks like the
Amazon Kindle, has the same e-Ink screen that the Kindle sports, and has a rights architecture that
is more open than the Kindle. The Infibeam Pi, which can be ordered online and is priced at Rs
10,000. The Amazon Kindle, when shipped to India, costs about Rs 18,000. The Pi reader has no
wireless connectivity, however.

The Pi supports 13 Indian languages and has a micro USB port to connect to a PC. Users will need
to create an account with Infibeam.com, register the device and then download the ebooks. The
ebooks can be read on the PC as well as on the Pi.

The Pi can also be used to read any document (word or pdf, for instance). It can store about 600
ebooks in its internal memory. It also has space for a 4GB card—that means about 3,000 ebooks
can be carried around.

Pi can play music as well.

Copenhagen Wheel
Reinventing the wheel was not exactly what Myshkin Ingawale had in mind when he set out from
NIT-Bhopal towards MIT-Massachusetts, with a stop-over at IIM Calcutta. The 27-year-old’s
Copenhagen Wheel, named after the Danish capital after it was unveiled during the climate summit
in December 2008, could be about to do just that.

A smart disc that can be retrofitted on any bicycle, the device can boost the cycle’s power and can
also keep track of friends, fitness, smog and traffic. And if someone tries to steal the bike while its
owner happens to be away, the device will send out an alert via a text message.

The Danish capital is set to embrace it whole-heartedly in its attempt to become the world’s first
carbon-neutral capital city by 2025.

Ingawale began working on the device in 2003, when he started fitting bicycles with electric motors.
An early version of the device was made during his time at the National Institute of Technology
campus in Bhopal, where he studied for a B.Tech in electrical engineering.

The big leap for the device and Ingawale came about when he got in touch with a team from the
prestigious Massachusetts Institute of Technology (MIT) in the US, which was working on ways to
make bikes efficient and green.

“From the days of the horse-drawn carriage, all we have done is replaced the horse with a beast of
a different kind. Can we be creative, can we make something that radically improves things for the
better? This was the motivation and thought process of the team,” he says.
Tricolour to tower over nation
Naveen Jindal, MP from Kurukshetra who fought a long legal battle to ensure that individuals can
hoist the national flag too, will put up monumental flag poles with flags about 3,500 square feet in
size and hoisted on 206-feet-high steel poles—all across the country.

After putting up five monumental flag poles in his own constituency, Jindal now has plans to set up
many more to create awareness and generate respect for the national flag in every Indian.

Jindal's Flag Foundation of India, set up after he won the legal battle in 2005 against the
government diktat that only institutions can hoist the national flag, will work with local bodies to set
up these poles. He has even had the government amend the Flag Code to allow these massive flags
to fly even at night, with proper illumination.

The first monumental flag pole outside Kurukshetra will come up in Angul, a tribal district in Orissa,
followed by Hyderabad, Mumbai and Kanyakumari. Each project will cost Rs 40 lakh, with the pole,
made of high tension steel, weighing 12.5 tonnes, and the flag, made of knitted polyester, weighing
28 kg and costing Rs 60,000.

National Martyr Register

Sixty years after it became a Republic, India is about to share with its people the first authenticated
list of martyrs, who helped it realise the dream of freedom. The list would, for the first time, cover
the martyrs of 1857, recognised now as the watershed in the struggle for India’s Independence.

Also, the list’s focus would be the nation to avoid accusations that the existing works on martyrs are
heavily tilted in favour of the North.

Till date the country had no National Register of Martyrs which could be taken as the basis of future
historical research on the subject. Names that do exist in scattered works, including “Who’s Who of
Indian Martyrs’ published by the Education Ministry in 1969, are the ones that figured in the
national movements of the late 19th and 20th centuries.

However, the existing names of martyrs lacked historical referencing and could be dismissed as
claims unless proved otherwise by evidence in primary sources like judicial records and jail files.

But now, thanks to experts under the Indian Council of Historical Research which is in charge of the
project, India will soon have its first historically-tested list of martyrs.

India’s first aero sports centre

Narnaul, a non-descript village located in the backwaters of Haryana has got India’s first aero sports
centre, which was inaugurated by Chief Minister Bhupinder Singh Hooda, at the local airstrip on
January 31, 2010. The centre, named after the late Prime Minister Rajiv Gandhi, has been set up by
the Department of Civil Aviation, Haryana, in collaboration with the Aero Club of India

CURRENT NATIONAL AFFAIRS

AGRICULTURE
Bt Brinjal controversy
Faced with vehement protests by farmer groups and the green lobby, as also some States, the
Union government has decided to freeze the introduction of Bt Brinjal in the country till
independent scientific studies established health and environment safety of the product to the
satisfaction of both public and experts.

Although India’s biotechnology regulator, the Genetic Engineering Approval Committee (GEAC),
has cleared Bt brinjal for regular agriculture purposes, the detractors say that the variety may
have passed the yield test and the pest-resistance analysis, but its edibility is yet to be
confirmed.
Three major brinjal producing States, West Bengal, Bihar and Orissa, which account for nearly
60 per cent of the produce, have also refused to endorse the product. The governments of
Madhya Pradesh and Chhattisgarh also specified that they would not have Bt Brinjal in their
States.

The variety has been developed by Maharashtra Hybrid Seeds. It has been created by inserting
gene from the soil bacterium bacillus thuringiensis into brinjal, which is said to give the plant
resistance against insect pests.

BANKING & FINANCE

RBI monetary policy review
There is a shift in RBI’s monetary policy stance to managing the revival of the economy from
managing the crisis. In its review on January 29, 2010, the central bank has accepted a 7.5%
growth with 8.5% inflation.

RBI is worried about the high inflation rate but its governor D. Subbarao pointed out that it is
mainly on account of supply side constraints. The condition could further deteriorate. "With
growth accelerating in the second half of 2009-10 and expected to gain momentum over the
next year, capacity constraints could potentially reinforce supply side inflationary pressure,"
the review document said.

Therefore, the Reserve Bank's new shift in the policy stance from managing the risk to
managing the recovery made it to take a relatively milder action to increase the cash reserve
ratio by 0.75 percentage point to take out Rs 36,000 crore from the system. Besides that, it did
not take any harsh measure.

On the food inflation front, the central bank pinned its hope on good rabi crop and good
monsoon in 2010. Assuming a normal monsoon, it expected inflation to moderate from July
2010 onward.

At the same time, RBI expressed its worry over the industrial growth, as it is not broad based,
and underlined the need for consolidating it. The RBI's document on macro-economic
development showed that while industries like food products, beverages, tobacco and related
products showed a negative growth, industries like basic metals & alloys and paper & paper
products were still decelerating. On the other hand, the RBI document showed industries like
transport equipment, rubber, petroleum, textile products and a host of other industries were
growing.

PLANNING & ECONOMY

Rural poor estimated at 42%
Agriculture sector in India continues to suffer, save for sharp growth in some years. The expert
group to review the methodology for estimation of poverty, chaired by Suresh Tendulkar, has
now suggested that the poverty ratio at the all India level was actually 37.2% in 2004-05.

Rural poverty was projected at 41.8% and urban at 25.7% by the committee, as against official
estimates of 28.3% and 25.7% for rural and urban population, respectively.

In the past, the poverty line was defined in terms of per capita consumer expenditure at 1973-
74 market prices and adjusted over time and across States for changes in prices keeping
unchanged the original 1973-74 reference poverty line baskets of goods and services. The all-
India rural and urban poverty line baskets were derived separately, assuming per capita daily
calorie intake of 2,400 for rural people and 2,100 for urban population.

The Tendulkar panel has made four major departures from the past practices. It moved away
from the calorie intake criteria for determining poverty line. Instead, it tests for adequacy of
actual food expenditure near the poverty line to ensure aggregate nutrition, rather than just
calories.

Two, it has recommended adoption of uniform PLB for the urban and rural population, breaking
away from the past practice of two separate baskets. This has been done to get rid of the
problem of outdated PLB, a major criticism of the existing poverty line.

Three, it has suggested a new price adjustment procedure based in the same data set as the
one used for poverty estimation, rejecting the earlier practice of using price indices that are
generated externally, specific to population segments and were outdated.

And four, it incorporates explicit provision in the price expenditure on health and education,
which in any case has been rising. The official poverty estimate, in contrast, assumes basic
health care and education services would be provided by the State, and although the 1973-74
base takes note of the private expenditure on these items, it does not take into account the
increase in the proportion for total expenditure over the years.

The Tendulkar panel has also recommended that 365-day mixed reference period be used to
collect data instead of the past practice of using 30-day uniform reference period. The
advantage of using MRP is that data integrity is better when respondents are asked about their
expenditure in the 365 days prior to the survey, particularly on items of low frequency
consumption such as clothes, footwear and durables, than when they are questioned on
expenditure on the preceding 30 days.

Nutrient-based subsidy policy cleared

The Union government has approved the Nutrient Based Fertiliser Subsidy (NBS) plan with effect from April 1,
2010. This is likely to have positive sentimental impact on share prices of fertiliser companies. Under the new
policy, the companies can fix retail fertiliser prices. However the urea prices will be increased by Rs 483 per
tonne or 10 per cent.

“The hike in urea prices is not going to impact the bottom-line or EPS of fertiliser companies as extra 10 per cent
will go from farmer’s pocket directly. However, looking at the shift in policy, it’s a big positive for the industry,”
said an analyst.

Fertilisers are sold at government-fixed prices, which are lower than their costs of production or import. The
difference is met through subsidy. The NBS does away with maximum retail price. It proposes to replace the
current system of giving subsidy to the industry with direct assistance to farmers.

Solar Mission launched

Prime Minister Manmohan Singh launched India’s Solar Energy Mission (named Jawaharlal Nehru National Solar
Mission) on January 11, 2010. The main aim of the mission is to help generate 20,000 MW of solar power by 2022.

The Prime Minister urged the industry to create ‘Solar Valleys’ on the lines of Silicon Valleys and asked business
houses to view the Solar Energy Mission as a business opportunity. He added that the success of the mission had
the potential of transforming India’s energy prospects while contributing to national and global efforts to combat
climate change.

The solar mission assumes important because it holds the centre-stage of the country’s activities to combat
climate change. The mission is an important part of the country’s National Action Plan on Climate Change and is
trying to establish the country as a global leader in solar energy, not just in terms of solar power generation but
also in solar manufacturing and generation of this technology.

The mission targets 1,100 MW grid solar power, 7 million sq meter solar collectors and 200 MW off grid solar
applications in first phase by 2013, and 20,000 MW grid solar power, 20 million sq m solar collectors and 2,000
MW off grid solar applications by the year 2022.

New adult literacy mission gets under-way

The Union government has chosen 19 States to start adult literacy classes under the all-new Sakshar Bharat
Mission, which the Prime Minister launched in September 2009.

The mission, with a whopping budgetary support of $1 billion, seeks to educate 70 million illiterates by 2012; 60
million being women. Its first phase began on January 15, 2010 in 167 districts of 19 States, which have, in the
past, displayed commitment to adult literacy.

The selected States are the ones that continued to stress adult literacy even after the old National Literacy
Mission (NLM) was disbanded. Some States like Punjab and Himachal neglected the sector, with none having any
ongoing adult literacy component or programme.

The mission aims to achieve 100 per cent literacy in 365 low literacy districts where adult female literacy rate is
50 per cent less as per the 2001 census. The final goal, however, is to take national literacy level from 64 per
cent to 80 per cent by 2017, and reduce the gender gap from 21 to 10 per cent. In the first phase, Rajasthan has
clinched the maximum number of projects for 31 districts. Close behind is Uttar Pradesh with projects for 26
districts, Andhra Pradesh 18, Gujarat 13 and Uttarakhand five.

The focus will be on learning beyond reading, writing and arithmetic to include life skills and employment as part
of adult literacy. The idea is to retain learners and not lose them to lack of post-literacy avenues.

Another thing that sets the Sakshar Bharat Mission apart from the NLM is its complete ownership with the Gram
Panchayat. The past programme was controlled by districts, which used to get certificates for compliance. Now
the programme will be run and monitored by Panchayats and learners will be the king.

Social Situation Report

With over 40 per cent of people in India still living on less than $1.25 (around Rs 60) a day, India now stands third
in terms of the highest proportion of extremely poor people in South Asia, next only to Nepal and Bangladesh,
with corresponding percentages at 54.7 and 50.5, respectively.

The latest UN Report on the World Social Situation 2010, places India below Pakistan, Myanmar and Sri Lanka in
terms of extreme poverty. Pakistan is the only nation in the sector to have achieved the Millennium Development
Goal (MDG) of cutting poverty by half between 1990 and 2015. It had 73 per cent of the people in ‘extreme
poverty’ 15 years ago; it now has 22.6 per cent as against its MDG target of 29.3 per cent.

India is lagging on the front, and must have an annual poverty reduction rate of 4.7 per cent (between 2005 and
2015) against 1.4 between 1990 and 2005 if it wants to meet the MDG target of 27 per cent; so far it has touched
only 41.6 per cent. Rural India has 43.8 per cent of the people in extreme poverty as against 36.2 per cent in
urban areas.

This underlines the need for inclusive growth in India, as stated by the UN report, which credits China, and to
some extent India, for reduced global poverty in the past two decades when the number of people living on less
than $1.25 a day came down from 1.9 billion to 1.4 billion.

EDUCATION
Forty four deemed universities to be de-recognised
The HRD Ministry has decided to de-recognize as many as 44 "Deemed Universities", spelling uncertainty for
nearly two lakh students who are enrolled with them. The Ministry's decision amounts to an acknowledgement of
irregularities in conferring the "deemed" tag to these institutions under the first UPA government in which Arjun
Singh was the HRD minister.

These deemed Universities were found deficient on many grounds—ranging from lack of infrastructure to lack of
evidence of expertise in disciplines they claim to specialize in.
The HRD Ministry emphasized that the affected students would be taken care of. The Ministry's task force has
recommended that institutions not found fit for deemed University status "revert to status quo ante as an
affiliated college of the State University of jurisdiction so that students would be able to complete their ongoing
courses and obtain degree from the affiliating University." Similarly, medical and dental colleges not found
suitable can affiliate to State University or State medical University.

In case, the institution is unable to obtain affiliation, efforts would be made to facilitate the migration/re-
enrolment of the affected students in other institutions. Doctoral students will have to re-register in affiliating
Universities and those in distance education should either go to IGNOU or State open Universities. While these
safeguards have been recommended, the students are nonetheless likely to go through a phase of uncertainty as
they move from one University to another.

Tamil Nadu has the distinction of having 16 of the 44 de-recognized deemed Universities, 15 of them private and
one government-sponsored.

Karnataka has six de-recognized deemed Universities; Uttar Pradesh four; Haryana, Uttarakhand, Rajasthan and
Maharashtra three each; Gujarat, Orissa, Andhra Pradesh, Delhi, Bihar, one each. The three government-run
institutions to be de-recognized are: Nava Nalanda Mahavira in Bihar, Rajiv Gandhi National Institute of Youth
Development, Tamil Nadu, and National Museum Institute of the History of Art, Conservation and Musicology,
New Delhi.

National Knowledge Network

The Union government has approved the setting up of a National Knowledge Network (NKN) that will connect all
major educational institutions like the IITs, the IIMs and top universities for exchange of information and
research.

One of the important recommendations of the National Knowledge Commission (NKC) is to inter-connect all
knowledge institutions through high speed data communication network. This would encourage sharing of
knowledge, specialised resources and collaborative research. The government’s decision to set up such a network
was announced in 2008-09 and an initial amount of Rs.100 crore was allocated to the Department of Information
Technology, Ministry of Communications and IT for this.

The architecture of the NKN will be scalable and the network will consist of an ultra-high speed core (multiples
of 10Gbps and upwards) to provide a nationwide ultra high-speed data-network highway. The IT mesh will
connect around 1,500 institutions and the setting up of core network is expected to be completed in a span of
two years.

The network will enable scientists, researches and students from diverse spheres across the country to work
together for advancing human development in critical and emerging areas.

Health, education, grid computing, agriculture and e-governance are the main applications identified for
implementation and delivery on NKN.

Model rules for RTE Act

On January 30, 2010, the Union government approved model rules for the Right to Education Act 2009, which
requires State governments to make free and compulsory elementary education a right of every child between 6
and 14 years of age.

The model rules, list priorities for States, which would have to conform to the standards under the Act within
three years of its commencement; non-conformation could bring de-recognition. The Act, passed by the
Parliament in August 2009, is yet to be officially notified though.

To begin with, the rules ask school management committees or the local authorities to identify children, who
have never been to school or not managed to complete elementary education, and arrange for their special
training in appropriate classes so that they can ultimately be integrated into the system. Any child above 6 years
of age will be entitled to free special training either at school or residential facility, before he/she is ready to
enter school at a convenient level. Such children would be allowed to complete elementary education even after
they have attained 14 years, for the obvious reasons that they enter the school late.

At least one primary school (class I to V) must be located within a km of walking distance of the neighbourhood;
for schools with classes VI to VIII, this distance would be three km. States need to provide more neighbourhood
schools in highly populated areas and ensure safety of students in areas with tough terrains.

But before a school comes up, the States would have to undertake a mapping to identify all children in remote
areas, including those from disadvantaged groups. This must be done in a year and the data updated every year.

For the first time, the law mandates maintenance of records of all children from birth to 14 years of age through
a household survey to be updated every year. The rules further prescribe strict norms for non-segregation of
students and safe transport for disabled children to ensure that they attend school.

Also, there is flexibility on birth certificate for admission. If formal birth record is not available, an affidavit
would suffice, so would a hospital/ANM or anganwari record.

Adequate qualification for teachers has been stressed upon, with the academic authority (to be set up under the
Act) to enlist the qualifications for teachers, who would get five years to upgrade their skills. An important part
of the rules pertains to specifications on recognition of elementary level schools. The Act will, for the first time,
mandates recognition of such schools within three years of the commencement.

ENVIRONMENT
India submits proposed carbon cuts to UN
On January 30, 2010, India submitted its proposed emission intensity cut targets by 20-25 per cent by 2020 to the
UN, a day before the world body’s January 31 deadline for submitting the climate change mitigation steps under
the Copenhagen Accord.

However, it made it clear to the Secretariat of the United Nations Framework Convention on Climate Change
(UNFCCC) that all its domestic mitigation actions were entirely voluntary in nature and not legally binding, a
position India had maintained at Copenhagen Summit in Denmark.

Though agriculture sector contributes around 14 per cent of the total GHG emissions, India has kept it out of the
purview of the mitigations actions in its blueprint submitted to the UN to ensure food security.

LAW POINT
CJI comes under RTI ambit, says Delhi HC bench
In an unusual display of checks and balances within the judiciary, the Delhi High Court, on January 12, 2010,
rejected the contention of the Supreme Court that the office of the Chief Justice of India was beyond the ambit
of the Right to Information Act.

A full bench of the High Court, comprising Chief Justice A.P. Shah, Justice Vikramjit Sen and Justice S.
Muralidhar, unanimously dispelled the fear raised by the apex court that the extension of RTI to the CJI’s office
would undermine judicial independence.

Referring to a resolution adopted by Supreme Court judges in 1997, a resolution adopted by a conference of
Chief Justices in 1999 and the UN-sponsored 2001 Bangalore principles of judicial conduct, the HC said, ‘‘Well
defined and publicly known standards and procedures complement, rather than diminish, the notion of judicial
independence.’’

The HC verdict came in the context of the prolonged controversy over whether the declarations of assets made
by judges should be put in the public domain.
Free to criticize religions but without hate
In a significant ruling, a three-judge bench of the Bombay High Court has held that in India criticism of any
religion—be it Islam, Hinduism, Christianity or any other—is permissible under the fundamental right to freedom
of speech and that a book cannot be banned on those grounds alone.

However, the criticism must be bona fide or academic, said the Court, as it upheld a ban issued in 2007 by the
Maharashtra government on a book titled “Islam—A Concept of Political World Invasion by Muslims.” The book
contained an “aggravated form of criticism made with a malicious and deliberate intention” to outrage the
feelings of Muslims, the Court said.

Delivering the landmark verdict, the Court upheld the State’s ban on a book but at the same time brought joy to
civil rights activists when it held that, “in our country, everything is open to criticism and religion is no
exception. Freedom of expression covers criticism of religion and no person can be sensitive about it.”

The Court also found “totally unacceptable” the author’s argument that banning the book in the age of the
internet is passe and pointless.

FOREIGN RELATIONS
India-ASEAN trade treaty gets operational
The Union government has notified the rules to operationalise the India-ASEAN free trade agreement, which
came into effect from January 1, 2010. The rules specify that products having more than 35 per cent of local
content will get preferential tax treatment under the free-trade treaty.

The rules also specify the methodology for calculation of the cost of products to be traded between India and the
Association of South East Asian Nations (ASEAN).

New Delhi had signed the an agreement on August 13, 2009, in Seoul with ASEAN for duty-free import and export
of as many as 4,000 products ranging from steel to apparel to sugar and tobacco over a period of eight years.

While the pact opens the 1.7-billion consumer market to each other, it also eliminates duties on 80 per cent of
goods traded between the two regions by 2016.

Visit of Bangladesh Prime Minister

On January 11, 2010, India committed one billion dollars line of credit for developmental projects in Bangladesh
and transformed its bilateral ties by signing five accords, including three key security pacts to expand counter-
terror cooperation, during the visit of Bangladesh Premier Sheikh Hasina.

“This visit has opened a new chapter in India-Bangladesh relations, reflecting the unity of minds and hearts,”
Manmohan Singh told Sheikh Hasina.

The one-billion dollar line of credit is the largest ever one-time bilateral financial assistance India has provided
to any country. This will be used for construction of railway bridges and lines, supply of coaches and locomotives
and buses, and assistance in dredging, an issue of pressing concern to Dhaka.

India also agreed to supply 250 MW of electricity through its central grid. The two sides also took major steps to
improve connectivity, including the start of the Akhara-Agartala rail link.

The ties between the two nations had suffered under the previous regime in Dhaka over a host of tricky issues,
including the alleged sheltering of insurgents from India’s north-eastern States in Bangladeshi territory.

The three security-related pacts signal a major step forward in expanding counter-terror cooperation and in
addressing India’s concerns over this issue that had earlier strained their ties. The pacts will help New Delhi press
Dhaka for the extradition of suspected insurgents from its north-eastern States who have taken shelter in
Bangladeshi territory over the years.
During her visit, Sheikh Hasina was also conferred the prestigious Indira Gandhi Prize for Peace, Disarmament and
Development.

Visit of Prime Minister of Malaysia

On January 20, 2010, India and Malaysia y signed an extradition treaty and two other accords during the visit of
Malaysian Prime Minister Mohd Najib Tun Abdul Razak. The extradition treaty will enable India to seek the
transfer from Malaysia of Indians who commit crime on the Indian soil and take refuge in the South East Asian
nation.

A Malaysia-India capital market collaborative agreement was signed between the Securities and Exchange Board
of India (SEBI) and the Security Commission of Malaysia. The third agreement was in the field of higher
education.

Prime Minister Manmohan Singh and the Malaysian leader discussed a wide range of issues, including bilateral ties
as well as international developments. India’s ties with ASEAN were also discussed at length. Mr Razak strongly
pitched for the early conclusion of a Comprehensive Economic Cooperation Agreement (CECA) between the two
countries.

With bilateral trade exceeding $10.5 billion in 2008-09, Malaysia is India’s second largest trading partner (after
Singapore) among the 10 ASEAN members. Infrastructure, IT, biotechnology, energy and education have emerged
as promising areas of cooperation between the two countries.

Nepal assures of no anti-India activity from its soil

Indian External Affairs Minister S.M. Krishna visited Kathmandu on January 15, 2010. During his meetings with his
counterpart Sujata Koirala he gave positive gesture to Nepal to the latter’s long-standing proposal to review the
Nepal-India Peace and Friendship Treaty-1950.

In return, Nepal sought to address India's concerns with regard to fake currency being smuggled from here,
pledging that it would not allow its territory to be used against its neighbour.

India and Nepal also agreed to “cooperate closely” to end the menace of terrorism and extremism, including
human trafficking, smuggling of arms and fake Indian currency.

During the meeting, Nepal raised serious concerns over the highly controversial issues on border encroachment
from the Indian side whereas the Indian officials urged Nepal to cooperate with India by signing the much-
awaited Extradition Treaty that Nepal had been dilly dallying to sign.

Five MoUs regarding the construction of Terai roads with Indian assistance at an estimated cost of Rs 805 crore, a
project worth Rs 9.2 crore for the Nepal Stock Exchange Ltd and Central Depository Services (India) Ltd, Rs 6.3-
crore electrification project, and construction of a Science Learning Centre with India’s assistance of Rs 16.6
crore, were signed during the visit.

During his meeting with Unified Communist Party of Nepal-Maoists chairman Pushpa Kamal Dahal, alias
Prachanda, Mr Krishna expressed disappointment on their ongoing anti-India movement.

However, just a day after he met with Krishna when he had said he received positive response from him to
address their concerns, Prachanda, in his address to party cadres in Khotang district, criticised India and said it
has played negative role by backing up other political parties to uphold civilian supremacy in Nepal.

Visit of Korean President

Cooperation in the civilian nuclear energy field was high on the agenda during the meeting between Prime
Minister Manmohan Singh and South Korean President Lee Myung-bak, on January 25, 2010. Presdent Myung-bak
was also the chief guest at the Republic Day.

During the visit the two countries signed accords in diverse areas, including IT and civilian space, following the
talks between the two leaders.

President Lee Myung-bak began his four-day visit to India with a visit to the Hyundai factory near Chennai to
meet Korean businessmen living in the city before reaching New Delhi.

Regional and global issues, including the intensification of economic ties and cooperation in sphere of civilian
nuclear cooperation and space technologies, figured prominently during talks between the two sides. Closer
cooperation in combating global financial recession was also discussed in the context of the G-20 summit to be
held in Seoul later in 2010.

Apart from the civilian nuclear sector, the two sides also agreed to look at the possibility of joint venture co-
operation in research and development, and manufacture of military equipment including through transfer of
technology, the joint statement said. The two leaders also agreed to work towards a revised double taxation
avoidance convention before the end of 2010.

The Posco steel project in Orissa was also discussed with both sides agreeing that there was a need to expedite
the project, which has been facing delays for three years. The two leaders also recognised the need to expedite
the implementation of the POSCO project in Orissa,’’ the joint statement said. The Indian side assured South
Korea the government is doing its best to expedite the project, which continues to be entangled in land
acquisition issues. The Indian side further hoped that South Korean investment would expand in the
infrastructure and manufacturing sectors.

CURRENT INTERNATIONAL AFFAIRS

CONFERENCE
Commonwealth Speakers’ Conference, 20th
The 20th Commonwealth Speakers’ Conference was held in New Delhi from January 5, 2010. It was inaugurated
by Prime Minister Manmohan Singh.

Describing the growth of regional parties as a challenge for governance and conduct of parliamentary
democracy, Mr Manmohan Singh said: “Though the aspirations of smaller parties may often be anchored in
narrow considerations, they carry great weight for their constituents. In the end, democracy must respond to
everyday concerns of the common man and Parliament should be the forum to address such concerns.” The
remark was in obvious reference to the growing influence of sub-regional parties in coalition politics and
Parliament.

Presiding officers from 42 Commonwealth nations were present (some in traditional Speaker robes). The
Conference discussed, among other things, the Speaker’s role as a mediator and administrator of Parliament
and use of technology in disseminating information on Parliamentary proceedings.

The forum also saw India voicing the aspirations of developing nations on climate change.

AFGHANISTAN
London Declaration
A one-day international conference on Afghanistan was held on January 27, 2010 in London. Seventy Foreign
Ministers and officials of international organisations attended the convention at the 185-year-old Lancaster
House.

British Prime Minister Gordon Brown, hosting the conference with Afghan President Hamid Karzai and UN
Secretary General Ban Ki Moon, announced in his opening address the establishment of a $500 million 'trust
fund' to buy "peace and integration" with warriors who are engaged in violence for economic rather than
ideological reasons. A whopping $140 million has been pledged already for 2010.
During his pre-conference discussion with the British Foreign Secretary David Miliband, External Affairs Minister
of India, S.M. Krishna, specifically said, “there should be no distinction between a good Taliban and a bad
Taliban.” But this clearly fell on deaf ears. The participants rejected India's argument that there were no
degrees of Talibanism.

It was also unclear whether remnants of Afghanistan's Northern Alliance, once cultivated by India, would be
accommodated in any way. There was also no reference to the erstwhile Foreign Minister, Abdullah Abdullah,
who put up a spirited fight in the first round of the recent controversial Presidential election and exposed fraud
before withdrawing from the contest.

Pakistan supports a differentiation between Taliban segments, including being generally soft towards the
Afghan Taliban, which was sponsored by the Pakistani Army's Inter-Services Intelligence.

As a goodwill gesture, the conference was preceded by a lifting of United Nations sanctions on five leaders of
the obscurantist Taliban regime, which was ousted by armed forces led by the United States after the 9/11
attack on New York by the Afghanistan-based Al Qaida. Among the beneficiaries is a former foreign minister
Wakil Ahmad Muttawakil.

In keeping with United States President Barack Obama's plan to start withdrawing American troops in a little
over 18 months, Brown also declared that to fill the breach the strength of the Afghan army would be increased
to 134,000 by October 2010 and to 171,600 by October 2011. Corresponding enlargements would also occur in
respect of the Afghan police. The template for Afghanistan is similar to the one utilised in Iraq.

The Taliban central leadership rejected the London declaration on Afghanistan while several top Pakistani
leaders said they support dialogue with the Taliban to end the conflict.

The statement by the Leadership Council of the Islamic Emirate of Afghanistan issued in Pashto said: “The US
and its allies should have freed all prisoners from jails in Guantanamo Bay, Afghanistan, Pakistan and
elsewhere, removed the names of all Taliban members from the UN ‘blacklist’ and refrained from sending more
troops if they really meant to take the proper steps for ending the Afghan conflict.”

The statement argued that the ‘Mujahideen’ were not fighting for money or to grab power. Describing as
baseless that most Taliban fighters were not ideologically committed, it claimed that nobody compelled the
‘Mujahideen’ to take up arms and fight the invaders.

Accusing President Obama and Prime Minister Brown of trying to deceive their people by organising conferences
on Afghanistan like the one in London to win public support for a failed war, the statement reminded that such
conferences did not work in the past and would not succeed this time as well.
Arguing that the only solution of the conflict was the withdrawal of foreign forces from Afghanistan, the Taliban
statement also tried to reassure the West and rest of the world about their future plans in case they returned to
power.

SRI LANKA
Rajapaksa re-elected President
On January 27, 2010, Mahinda Rajapska emerged victorious in the bitterly-fought first post-LTTE era
Presidential elections. He won fighting against former army chief Sarath Fonseka, securing nearly 60 per cent of
the total votes polled.

On 59-year-old Fonseka's charges of poll rigging, the sources said it was "absolutely untrue" and pointed out that
even former Prime Minister and opposition UNP chief Ranil Wicremasinghe had given a clean chit on the issue.
ENVIRONMENT
Biodiversity protocol divides rich and developing world
An international protocol on biodiversity has become the new bone of contention between the developed and
developing countries. The rich countries are opposing an international legal framework for use of biological
resources.

The agreement will deal with the issue of bio-piracy, which is a cause of concern for countries like India.
Negotiations are on to finalise the protocol that is expected to be adopted at Nagoya, Japan, in October 2010.

India and other developing countries are pushing for a protocol on access and benefit sharing (ABS). Bio-piracy
is an important issue for India, which is keen on the adoption of the Nagoya Protocol.

The Convention on Biological Diversity, adopted at the Earth Summit in Rio de Janeiro in 1992, is the first
comprehensive global agreement addressing all aspects of biodiversity. The convention reaffirms sovereign
rights of nations over their biological resources. It has three main goals — the conservation of biological
diversity, sustainable use of its components and fair and equitable sharing of the benefits from the use of
genetic resources.

While an international legal framework appears to be a distant possibility, India has been taking steps at the
national and bilateral level to protect its biodiversity. Besides the Biological Diversity Act, 2002, and the
national Biodiversity Authority, India has also put in place a traditional knowledge database — the Traditional
Knowledge Digital Library (TKDL). Managed by the CSIR, TKDL is a computerised database of documented
information available in Indian texts, relating to Indian systems of medicine. Over 10 years, more than 2 lakh
formulations of Ayurveda, Siddha, Unani and Yoga have been documented under the TKDL.

Natural disasters not linked to global warming

The United Nations climate science panel, Intergovernmental Panel on Climate Change (IPCC), faces a new
controversy for wrongly linking global warming to a rise in natural disasters such as hurricanes and floods. It
based the claims on an unpublished report that had not been subjected to routine scientific scrutiny and
ignored warnings from scientific advisers. The report's author later withdrew the claim because the evidence
was too weak.

The link was central to demands at Copenhagen climate summit by African nations for compensation of $100
billion from the rich nations blamed for creating the most emissions. According to The Sunday Times the IPCC
knew in 2008 that the link could not be proved but did not alert world leaders.

The latest criticism came less than a week after IPCC was forced to retract claims that the Himalayan glaciers
would be largely melted by 2035. It turned out the claim had been lifted from a news report published in 1999
by New Scientist magazine.

Two scientific reviewers who checked drafts of the IPCC report urged greater caution in proposing a link
between climate change and disaster impacts, but were ignored.

The paper at the centre of the latest questions was written in 2006 by Robert Muir-Wood, head of research at
Risk Management Solutions, a London consultancy, who became a contributing author on the IPCC report on
climate change impacts. In the research, Muir-Wood looked at a wide range of hazards, including tropical
cyclones, floods and hurricanes. He found from 1950 to 2005 there was no increase in the impact of disasters
once growth was accounted for. For 1970 to 2005 he found a 2% annual increase that "corresponded with a
period of rising global temperatures," but said almost all of it was due to strong hurricane seasons in 2004 and
2005. Despite such caveats, the IPCC report used the study in its section on disasters and hazards, but cited
only the 1970-2005 results.
INTERNATIONAL RELATIONS
Google, China face-off over Internet
On January 13, 2010, Google threatened to shut down its operations in China after uncovering “highly
sophisticated” hacking attempts into e-mail accounts of Chinese human rights activists.

“These attacks and the surveillance they have uncovered, combined with the attempts over the past year to
further limit free speech on the web, have led us to conclude that we should review the feasibility of our
business operations in China,” David Drummond, senior V-P of corporate development and chief legal officer,
said in a blog post.

“We have decided we are no longer willing to continue censoring our results on Google.cn, and so over the next
few weeks we will be discussing with the Chinese government the basis on which we could operate an unfiltered
search engine within the law, if at all,” he said.

Evidence indicated that the attackers were trying to get access to mail accounts of Chinese human rights
activists, according to Drummond. At least 20 other large companies, including finance, Internet, media and
technology were similarly attacked, according to Google.

INTERNATIONAL TERRORISM
Taliban attack on match in tribal Pakistan
A northwest Pakistani village that tried to resist Taliban infiltration mourned on January 2, 2010 the victims of
an apparent revenge suicide bombing that killed 96 residents during a volleyball game. The attack on the
outskirts of Lakki Marwat city was one of the deadliest in recent Pakistani history and sent a bloody New Year’s
message to Pakistanis who dare take on the armed Islamic extremists.

Lakki Marwat district is near South Waziristan, a tribal region where the army has been battling the Pakistani
Taliban since October 2009.

Across Pakistan’s north-west, where the police force is thin, underpaid and under-equipped, various tribes have
taken security into their own hands over the past two years by setting up citizen militias to fend off the
Taliban. The government has encouraged such “lashkars”, and in some areas they have proven to be a key to
reducing militant activity. Still, tribal leaders who face off with the militants do so at high personal risk.
Several suicide attacks have targeted meetings of anti-Taliban elders, and militants also often go after
individuals. One reason militancy has spread in Pakistan’s semi-autonomous tribal belt is because insurgents
have slain dozens of tribal elders and filled a power vacuum.

Af-Pak strategy unveiled

In a candid assessment of the fragile relationship of USA with Pakistan, a US State department policy paper has
admitted that there is a degree of mistrust between Washington and Islamabad, but democratic rule in Pakistan
has created a window of opportunity. The report makes a point of noting that while the US military presence in
the region is not open-ended, its non-military commitment would be a long-term one.

Secretary of State Hillary Clinton unveiled the Obama administration's strategy to stabilise Pakistan and
Afghanistan, noting that the challenge in both countries is immense.

US officials have expressed concern over Pakistan's selective war on extremists within its borders, noting the
Pakistani army's offensive ignores deadly terrorist groups such as the Haqqani network, responsible for attacks
against US troops in Afghanistan.

The State department report outlines US objectives in Pakistan and Afghanistan. "While our combat mission in
Afghanistan is not open-ended, we will remain politically, diplomatically and economically engaged in
Afghanistan and Pakistan for the long-term to protect our enduring interests in the region," it says. On Pakistan,
it lays out the intention of USA to lead the international community in helping Pakistan overcome the political,
economic and security challenges that threaten its stability, and in turn undermine regional stability. "And we
seek to build a long-term partnership with Pakistan based on common interests, including a recognition that we
cannot tolerate, a safe haven for terrorists whose location is known and whose intentions are clear," it added.

"Achieving progress will require continued sacrifice not only by our military personnel, but also by more than
the 1,500 US government civilians serving in Afghanistan and Pakistan," Clinton said, pointing out that for the
first time since this conflict began, the US has a true whole-of-government approach. She said the Obama
administration's policy, rather than being an exercise in nation-building, was aimed to achieve realistic progress
in critical areas, and that Afghan and Pakistani governments had endorsed this strategy.

WORLD TRADE
Asia free-trade zone
On January 1, 2010, China and 10 South-east Asian nations ushered in the world’s third-largest free-trade area.
While many industries are eager for tariffs to fall on things as diverse as textiles, rubber, vegetable oils and
steel, a few are nervously waiting to see whether the agreement will mean boom or bust for their businesses.

Trade between China and the 10 countries that make up the Association of Southeast Asian Nations, also known
as ASEAN, has soared to $192.5 billion in 2008, from $59.6 billion in 2003. The new free-trade zone, which will
remove tariffs on 90% of traded goods, is expected to increase that commerce still more.

The zone ranks behind only the European Economic Area and the North American Free Trade Area (NAFTA) in
volume. It encompasses 1.9 billion people. The free-trade area is expected to help ASEAN countries increase
exports, particularly those with commodities that resource-hungry China desperately wants.

The China-ASEAN free trade area has faced less vocal opposition than the European and North American zones,
perhaps because tariffs were already low and because it was unlikely to alter commerce patterns radically.
However, some manufacturers in Southeast Asia are concerned that cheap Chinese goods may flood their
markets, once import taxes are removed, making it more difficult for them to retain or increase local market
shares.

Decline in oilseeds production, appreciation of rupee against dollar and zero import duties during
most of 2009 has made India the largest edible oil importer in 2009, a slot it took surpassing China.
Import of crude edible oil to India saw a huge jump of 35% to a record 8.4 million tonne (mt) in
2009. India's edible oil imports comprise almost 80% of palm oil.

Reserve Bank of India, along with the Securities and Exchange Board of India (SEBI) has allowed
recognised stock exchanges to launch futures currency trading in euro-rupee, pound sterling-rupee
and yen-rupee. Futures trading in dollars-rupee was already allowed.

With an economic freedom score of 53.8, India has been rated the 124th freest economy in the
world, according to the 16th Annual Index of Economic Freedom, released by The Heritage
Foundation and The Wall Street Journal. Hong Kong and Singapore finished 1st and 2nd in the
rankings for the 16th straight year. With Australia in 3rd place and New Zealand moving up to
number 4, the Asia-Pacific region boasts a clean sweep at the top. Europe registered three top 10
placements: Ireland, Denmark and Switzerland. The United Kingdom dropped out of the top 10 for
the first time in Index history. The United States also dropped significantly, to 8th place.

The fiscal deficit for 2009-10 was budgeted at a 16-year high of 6.8% of GDP. The high fiscal
deficit is blamed on the measures the government took to address the demand slump that followed
the global financial crisis. The high fiscal deficit is a concern as high government borrowing to meet
the expenditure in excess of revenues creates competition for funds and interest rates going up due
to this. High interest rates hurt rate sensitive sectors such as autos, real estate and consumer goods.
Investment activity also then slows down, depressing the overall economy. At macro level, inflation
goes up, currency weakens and growth is depressed. Increased interest payments leave less money
with the government to make productive expenditure.

He Pingping of China, at 2 feet 5 inches is the world’s shortest man and Sultan Kosen of Turkey, at
8 feet 1 inches is the tallest man.

The International Lunar Geographic Society, a New York-based organization devoted to the study
of the moon, has declared that a lunar crater in the moon's Sea of Tranquillity has been christened
after Shah Rukh Khan. This has been approved by the International Astronomical Union, which has a
final say with regard to the naming of craters on the moon. With a crater named after him, Shah
Rukh now joins the ranks of eminent personalities like Nobel laureate C.V. Raman, father of the
Indian space programme Vikram Sarabhai, father of the Indian nuclear programme Homi Bhabha
and other luminaries like Meghnad Saha after whom craters have been named.

India and China rank 123rd and 121st in pollution control, respectively, reflecting the strain rapid
economic growth imposes on the environment, according to the 2010 Environmental Performance
Index (EPI). Iceland leads the world in addressing pollution control and natural resource
management challenges, according to the index produced by a team of environmental experts at
Yale University and Columbia University. The EPI ranks 163 countries on their performance across 25
metrics aggregated into ten categories including environmental health, air quality, water resource
management, biodiversity and habitat, forestry, fisheries, agriculture, and climate change.
Occupying the bottom five positions are Togo, Angola, Mauritania, the Central African Republic, and
Sierra Leone—countries that lack basic environmental amenities and policy capacity. The US ranks
61st, significantly behind other industrialised nations like Britain (14th), Germany (17th), and Japan
(20th).

President of South Korea Lee Myung-bak was the Chief Guest of the Republic Day, 2010.

The Pravas Bharatiya Divas was celebrated in New Delhi on January 6, 2010. The theme this year
was: “Engaging the Diaspora: The way forward”.

Ashok Leyland has launched India’s first electric plug-in CNG hybrid bus, named Hybus.

Recovery from the global economic downturn is faster in India compared with other countries in the
world as consumers here are more willing to spend, according to the Nielsen Global Consumer
Confidence survey. India ranked second with 117 points in the fourth quarter of 2009, behind
Indonesia, which has 119 points. Globally consumer confidence has remained stable at 87 per cent.
Apart from India and Indonesia, Hong Kong, China, Singapore and Brazil are where recovery is
accelerating. About 17 per cent Indians think that job prospects in the country would be 'excellent'
and 66 per cent think that it would be 'good' in the next 12 months.

Jawaharlal Nehru National Solar mission has been set-up to create an enabling policy framework
for the deployment of 20,000 MW of solar power in 2020. The other objectives are: (a) Promote
programmes for off-grid applications, reaching 1000 MW by 2017 and 2000 MW by 2020; (b) to
create favourable conditions for solar manufacturing capability for indigenous production and market
leadership; (c) to achieve 15 million sq metres solar thermal collector area by 2017 and 20 million by
2022; (d) to deploy 20 million solar lighting systems for rural areas by 2022.
Army Day is celebrated on January 15.

India’s human and gender development record is improving, with the latest government report
showing a significant increase in country’s position on human (HDI) and gender related development
indices. India’s HDI, which was 0.530 in 1996, rose to 0.605 in 2006, while GDI score improved from
0.514 in 1996 to 0.590 a decade later. A concern, however, is the country’s Gender Empowerment
Measure (GEM) score, which judges women’s participation in politics and decision-making, their
representation in Parliament and legislatures and their control over economic resources. Gendering
Human Development Index in India, released by Women and Child Development Ministry, claims
GEM score of 0.497 in 2006 against 0.416 in 1996. Delhi has the highest GEM score and Nagaland
the lowest. The highest GEM scorers in India are Andaman and Nicobar, Puducherry, Goa, Andhra
and Himachal. The best performers on political participation of women are Punjab, Andaman and
Nicobar, Himachal and Haryana. On economic empowerment of women, Chandigarh, Goa, Delhi and
Punjab are the best, but in terms of control of economic resources, Meghalaya stands on top.

The Indian School of Business (ISB) is the only one from India to find a place on the list of top 20
B-schools in the world, published by the Financial Times. ISB has improved its position to bag the
12th spot on the list of top 100 B-Schools across the globe in 2010. The London School of Business
topped the list, followed by the University of Pennsylvania and Harvard Business School. Stanford
University GSB and Insead have been ranked at the fourth and fifth positions, respectively.

The revised estimates of the national income that took into account 2004-05 prices have calculated
the per capita income of India at Rs 40,14,1 in 2008-09. The old method of income calculation had
pegged per capita at 37,490 for 2008-09. On an annual basis the new per capita income rose 13.3
per cent compared to the previous year (2007-08). The new series of calculating the national income
changed the base year to 2004-05 from 1999-2000 earlier.

NOVEMBER 08 TO OCT 09 CURRENT AFFAIRS

NOVEMBER -2008

CURRENT NATIONAL AFFAIRS

Mumbai terror attack: On November 29, 2008, Commandos of the National Security Guard
ended the takeover of the iconic Taj Mahal hotel by terrorists since late November 26-night when
the last of the three gunmen who were playing a cat and mouse game with the soldiers were shot
dead. The number of dead during the terror attack across the Mumbai city was pegged at 185.
The list of dead includes 22 foreigners, two NSG commandos, 15 Maharashtra police personnel,
one RPF constable and two Home Guards. Hemant Karkare, Chief of Maharashtra ATS, Ashok
Kamte, Addl Commissioner of Police, Vijay Salaskar, Police Inspector, Sandeep Unnikrishnan,
Major, NSG, Gajender Singh, Havildar, NSG gave their lives to save Mumbai from the terror
attack. While one terrorist was captured alive, nine gunmen were killed in the firefight with the
security forces at Oberoi-Trident Hotel, Taj Hotel, Nariman House and Chhatrapati Shivaji Rail
Terminus.

Congress retains Delhi for record third time: The Congress government in Delhi, led by Mrs
Sheila Dikshit was voted back to power for the third straight time, a record for any Chief Minister
of Delhi. The Congress in Delhi had begun its campaign as the underdog but ultimately the
electorate gave its thumbs-up for the good governance and developmental work done in last five
years. The defeat was shocking for the BJP who had been quite confident of winning in Delhi this
time. BJP blamed the fractious rivalry in the party for the defeat. Congress got 42 seats in the 70-
member Legislative Assembly, five less than it got in 2003 elections. BJP got 23 seats, three
more than last time. BSP won 2 and others 2. Elections were held for 69 seats.

BJP retains Madhya Pradesh: The BJP’s second consecutive victory in Madhya Pradesh had
several unique features. The cleverest was the BJP decision to fight on the development plank.
The party put its saffron agenda on the backburner and banked on development, instead. The
BJP also took a leaf out of Narendra Modi’s strategy book and changed more than one-third of its
sitting MLAs. And the gambit paid off. Although the number of seats has been reduced the BJP
won on positive votes, unlike the last time when it rode a massive anti-incumbency wave. BJP
won 144 seats this time, again 173 in 2003. Congress improved its tally from 38 to 70 this time.
BSP got 7 seats and Others 9 in the 230-member Legislative Assembly.

BJP retains Chhattisgarh: It was a divided house that brought the Congress down in the
Chhattisgarh Assembly elections and helped the BJP return to power for the second time in a
row. The BJP even retained the Naxal-dominated tribal areas like Bastar and Ambikapur. At one
stage it looked like a close call, but the BJP did manage to wrest power. The Congress campaign
focused on corruption and on the government’s virtual absence in the Naxalite areas. But the BJP
side-stepped the corruption charges by dropping one-third of its sitting MLAs. BJP has won 50
seats in the 90-member Legislative Assembly, same as in 2003. Congress got 38 seats, one
more than last time. BSP won 2 seats.

Congress is back in Rajasthan: The Congress has won 96 seats in the 200-member Assembly
and has formed the government with the help of like-minded parties and victorious Congress
rebels. The BJP won only 78 seats. The outcome was seen as a vote against Chief Minister
Vasundhara Raje’s personalized style of functioning.

Congress sweeps Mizoram: The Congress has not only set an electoral record in Mizoram by
bagging 32 seats, it has also reinforced the party’s hold in the Northeast, with four States in the
region now under its belt. The ruling Mizo National Front could win only three seats in the 40-
member Assembly. Since its Statehood in 1986, Mizoram had always denied two-thirds majority
to any single party. Even the legendary Laldenga’s Mizo National Front, which rode the peace
accord wave, won only 24 seats in 1987. Congress leader Lalthanhawla, who has taken over as
the Chief Minister, said the electorate wanted to be a part of the Indian dream and “we hope to
provide that change”.

Visit of President Pratibha Patil to Vietnam and Indonesia: President of India, Pratibha Patil
went on a 10-day visit to Vietnam and Indonesia from November 24, 2008. The visit aimed to
boost India’s policy of ‘look east’. The visit helped to further expand the bilateral ties of India with
the two ASEAN fraternity countries. During her 10-day stint, the President held talks with the
leaders of the two countries for enhancing bilateral relations. Besides discussing slew of issues
concerning the three countries, the visit focused on intensifying trade and investment. Over the
years, both Vietnam and Indonesia have seen impressive growth rates. The visit also helped to
gauge the economic, political and cultural relations of the three nations.

India to attend meeting on Turkish pipeline project: India has decided to attend a trilateral
meeting along with Turkey and Israel to join a pipeline project that may help it access crude
supplies from Central Asia and the Caspian region. The first leg of the proposed pipeline will
supply crude from the Caspian region to Ceyhan port on Turkey’s Mediterranean coast. After the
crude reaches the Ceyhan port, it will be transported through an undersea pipeline to Israel from
where it would be connected to the Ellat port on the Red Sea. It is from here that India could take
crude through tankers and avoid the choke points of Suez Canal.
Visit of President Mubarak of Egypt: Picking up the threads of a relationship that had gone dry
for almost a quarter of a century, India and Egypt on November 18, 2008, took the high road,
setting up a strategic dialogue and signing a rash of agreements during President Hosni
Mubarak’s first visit to India in 25 years. India and Egypt signed five agreements, including an
extradition treaty and one on
cooperation in outer space and an MoU for cooperation in trade and economic fields.

Germany wants greater Indian role to tackle recession: In his first-ever visit to India in
November 2008, German Foreign Minister Frank-Walter Steinmeier had a full agenda. In his
conversations with counterpart Pranab Mukherjee Steinmeier focused on the raging financial
crisis, particularly as Germany slides into recession.

India-South Korea free trade talks conclude: India has concluded free trade negotiations with
South Korea. The India-Korea Comprehensive Economic Partnership Agreement (CEPA) with
South Korea covers trade in goods as well as ser-vices, measures for trade facilitation and
promotion, facilitation and
liberalization of investment flows, measures for promoting bilateral economic cooperation in
identified sectors among other things. One interesting thing about the Indo-Korea trade
agreement is that a positive list approach for services is being followed, unlike with other
countries where a negative list approach is followed.

Britain lifts ban on N-exports to India: On November 10, 2008, Britain announced the lifting of
a ban on exporting sensitive nuclear technology to India for
civilian projects giving momentum to resumption of global atomic cooperation with New Delhi
after the end of its over three-decade nuclear apartheid. The change in the position of the British
government, a strong supporter of the Indo-US nuke deal, followed the Nuclear Suppliers Group
(NSG) waiver in September 2008, that brought India back into the nuclear mainstream.

Prime Minister’s visit to Oman and Qatar: On November 8, 2008, Prime Minister Manmohan
Singh left on a three-day visit to the Sultanate of Oman and Emirate of Qatar to further boost the
bilateral ties between the countries. India and Qatar signed two agreements on defence and
security during Prime Minister Manmohan Singh’s visit. Accelerating efforts to prop up growth as
the global slump is threatening their ascending economic trajectory, India and Oman put together
a $100-million fund for financing multi-sector projects in the two countries.

Mega Stimulus package to revive the economy: Following are the highlights of the mega-
stimulus package announced by the government to boost the economy: Additional plan
expenditure of up to Rs 20,000 crore (Rs 200 billion); Excise duty reduced across the board by 4
per cent; IIFCL authorised to raise Rs 10,000 crore (Rs 100 billion) via tax-free bonds; PSU
banks to announce package for borrowers of home loans; Rs 350 crore (Rs 3.50 billion)
additional funds for export incentives; Back-up guarantee to ECGC for up to Rs 350 crore; 2 per
cent interest subvention for labour-intensive exports; Rs 1,100 crore (Rs 11 billion) to ensure full
refund of Terminal Excise duty; Additional Rs 1,400 crore (Rs 14 billion) for textile sector under
TUF Scheme; The guarantee cover for loans to MSME doubled to Rs 1 crore (Rs 10 million); The
lock-in period for such collateral-free loans reduced; Government departments allowed to take up
replacement of vehicles; Import duty on naphtha for power sector eliminated; Export duty on iron
ore fines eliminated.

CURRENT INTERNATIONAL AFFAIRS

Global economic downturn: The US Federal Reserve launched an $ 800 billion plan on
November 25, 2008, to buy mortgage-related debt and back consumer loans as it tries to revive
the US lending market and steer the global economy away from a deep recession. Citigroup,
once perceived as the world’s smartest financial services house, also got a US government
support of $ 326 billion. On November 9, 2008 China also announced a whopping $ 570 billion
stimulus package to boost domestic demand and a slew of macro-economic measures to ease
credit crunch to offset the adverse impact on its economy from the global economic crisis.
Finance and Central Bank officials from Japan, South Korea and China met Southeast Asian
counterparts in first week of November 2008 to devise an action plan to prevent the global
financial crisis from destabilizing the regional economy. While the G-20 economies agreed to take
fiscal stimulus measures to stave off a deep recession, Trade and Foreign Ministers from the US,
China and other economies around the Pacific Rim called for new free trade deals as a way out
of the global economic crisis.

Japan slips into recession: Japan slid into its first recession in seven years in the third quarter
of 2008 as exports crumbled, and some analysts said an escalation in the global financial crisis
may have put the economy on course for its longest-ever contraction. The 0.1% contraction in
July-September gross domestic product barely captured the impact of the financial fire-storm that
began in mid-September, wrecking Wall Street banks, triggering a stock market crash in Tokyo
and a yen rally that may hit exporters even harder.

Euro zone in recession: Recession has hit much of Europe, as per the latest data, confirming a
widespread economic downturn. The worst financial crisis in 80 years has weakened the world’s
major economies and the euro zone said growth fell 0.2% for the second quarter in a row. It was
the first time the 15-nation bloc has suffered recession since the common European currency was
formed. European Commission President Jose Manual Barroso said he hoped to draw more
emerging economies into global financial institutions such as the International Monetary Fund,
saying Europeans were ready to lower their representation to make more room for countries such
as China.

Pak-IMF accord on bailout: Pakistan has reached an agreement with the International Monetary
Fund (IMF) for a $ 7.6 billion bailout package. IMF will provide this loan at interest rate ranging
between 3.51 and 4.51 per cent and its repayment will be made in five years beginning from
2011. The credit is five times Pakistan’s quota and falls short of its expectation of at least a $ 9
billion package. It will be used only to bolster central banks reserves in order to avoid possible
default on payments. The IMF will release $4 billion as the first tranche of the loan in 2008 while
the rest will be provided next year.

Nama-11 opposes US, EU push on sectoral initiatives: India and some other developing
country members of the World Trade Organisation (WTO) have opposed efforts being made by
members like the US and the EU to make it mandatory for all members to participate in talks for
eliminating tariffs in select sectors like textiles and leather. The Nama-11 group of countries,
which has eleven members including India, Brazil and Argentina, have emphasized that the
mandate of the on-going Doha negotiations was to make sectoral negotiations voluntary and not
mandatory. Sectoral initiative is aimed at eliminating tariffs in select areas by WTO members on a
reciprocal basis.

G-20 summit: Global leaders showed a united front against the financial crisis at an emergency
summit in November 2008, but offered mostly promises of future cooperation. Heads of the
Group of 20 industrial and developing nations vowed bold action in a host of areas from
enhanced oversight of financial markets to reform of the IMF and World Bank and urged
governments to implement appropriate fiscal and monetary policies to shore up sagging
economic growth. But the group left most of the tough decisions to future meetings.

BIMSTEC Summit: The Bay of Bengal Bengal Initiative for Multi-Sectoral Technical and
Economic Cooperation (BIMSTEC) Summit was held in New Delhi in November 2008 to firm up a
strategy to combat terrorism and to work out a free trade agreement among the seven members
of the grouping. The convention on combating terrorism was among the four agreements signed.
The other three agreements related to the setting of an energy centre, a climate centre and a
cultural observatory.

China, Taiwan hold historic meeting: On November 22, 2008, Chinese President Hu Jintao
met with a senior Taiwan envoy in the highest-level meeting to take place overseas between the
rivals since their split in 1949. Taiwan’s former premier Lien Chan, who is honorary chairman of
the island’s ruling Kuomintang party, met with Hu for about 40 minutes at a hotel in Lima, Peru,
where leaders were meeting for an Asia-Pacific summit. China has historically opposed any hint
of international recognition of democratic Taiwan, which Beijing considers a part of its territory
awaiting reunification, by force if necessary. The latest meeting was the latest step forward for the
two Cold War rivals, whose relations have improved dramatically in 2008.

Indonesia executes Bali bombers: On November 8, 2008 Indonesia executed three Islamists
sentenced to death for the Bali bombings which killed 202 people, sparking clashes between the
police and their emotional supporters. Amrozi, 47, his brother Mukhlas, 48, and ring-leader Imam
Samudra, 38, were killed with shots to the heart in an orange grove near their prison on
Nusakambangan island off southern Java. The 2002 attack targeted packed nightspots on the
holiday island of Bali, killing more than 160 foreigners including 88 Australians as well as 38
Indonesians.

UN OKs sanctions on Somali pirates: The UN Security Council has voted unanimously to
impose sanctions on pirates, arms smugglers, and perpetrators of instability in Somalia in a fresh
attempt to help end years of lawlessness in the Horn of Africa nation. The 15-nation Council
endorsed a British plan for a panel to recommend people and entities whose financial assets
would be frozen and who would face a travel ban. It also reaffirms an arms embargo. Enforcing
the sanctions poses steep challenges as those responsible for much of the anarchy plaguing the
country are well outside any traditional finance system.

UN says pollution has levelled off: Emissions from industrialized countries plateaued in 2006
after six years of growth, according to the United Nations. But the countries have not yet reported
emission from the past two years, and the new report did not include large emerging economies
such as India and
China. The UN report was released two weeks before the world’s environmental ministers were to
meet in Poland to discuss ways to curb greenhouse gases and against the backdrop of the global
financial
crisis. Overall, among the 40 industrialized countries that reported to the UN, emissions had
increased by 2.5% from 2000 to 2006, leading the climate panel to denounce what it called
“continued growth”.

Thai PM declares state of emergency; resigns: Thai Prime Minister Somchai Wongsawat
declared a state of emergency on November 27, 2008, as anti-government protesters swarmed
Bangkok’s second major airport amid a month- long political crisis that threatened to sever key
links between one of the Southeast Asia’s biggest economies and the outside world. The
developments—coming a day after thousands of protesters took over the country’s main
international airport—intensified speculation that Thailand could be heading for another military
coup. However, on December 2, 2008, Prime Minister Somchai Wongsawat resigned after the
country’s constitutional court outlawed the three ruling parties for electoral fraud, with ecstatic
anti-government protesters announcing the end of siege on the two main airports.

100 nations sign cluster-bomb ban: Leaders from more than 100 countries have signed a
global ban on the use of cluster bombs. The treaty, which was negotiated in Dublin in May, 2008,
bans the production, use and trade of cluster munitions. Cluster weapons—criticized for carrying
a high risk of maiming or killing civilians—can be launched from the air or via artillery shells and
can disperse hundreds of bomblets over a target area. Several non-governmental organisations
and humanitarian groups had pushed for the ban. However, the world’s largest producers and
users of cluster bomb munitions—the US, Russia, China, Israel, India and Pakistan—are not
signatories of the treaty. Norway started a campaign against cluster bombs in February 2007, in
part inspired by the successful grass-roots movement that led to a 1997 treaty negotiated in Oslo
barring anti-personnel mines.

DECEMBER

CURRENT NATIONAL AFFAIRS

RBI infuses 20k crore: On January 2, 2009, the Reserve Bank of India (RBI) announced a
further easing of money supply with the reduction of key rates and ratio which it said would
release Rs 20,000 crore into the banking system. While the cash reserve ratio—the amount of
cash that banks need to keep in reserve—has been cut by 0.5 per cent to 5 per cent, repo and
reverse repo rates—the short-term rates at which the RBI lends and borrows from banks—have
been cut by 100 basis points each to 5.5 per cent and 4 per cent, respectively. Following the RBI
measures, government-owned banks provided a respite from high interest rates to individuals
wanting to buy a house and to the distressed owners of Micro, Small and Medium Enterprises
(MSMEs).

Companies can now launch IPOs 1 year after SEBI nod: The Securities and Exchange Board
of India (SEBI) has granted greater flexibility to corporate to raise funds and outlined measures to
prevent the kind of panic redemptions that brought the mutual fund industry to its knees in
October 2008. SEBI has now approved a proposal to extend the validity period for an initial public
offering approval from three months to a year. The new rule comes as a relief for those who were
forced to defer their IPOs even though they had obtained approval. Under the new rule, the
companies can go public within one year of receiving the regulator’s approval. However, SEBI
has
stipulated that companies will have to update the document with fresh numbers and any other
material changes whenever required.

Economy gets another booster dose: On December 7, 2008, the Union government
announced major tax cuts across the board for housing sector and duty cuts for companies that
provide finance to real estate companies. The move was intended to prop up sagging demand in
sectors such as housing, exports, textile and infrastructure. Paying special attention to exports,
the government has decided to provide an interest subvention of 2 per cent up to March 2009 for
pre- and post-shipment export credit for labour-intensive exports like textiles, leather, marine
products and SME sector. Items of handicrafts will be included under Vishesh Krishi and Gram
Udyog Yojana among other initiatives.

30k-cr oil bonds: The government is working on a bailout package to prevent its three blue chip
oil companies—Indian Oil, Bharat Petroleum and Hindustan Petroleum—from closing 2008-09 in
the red. The package proposes to provide additional oil bonds of Rs 30,000 crore to the oil
companies to compensate them for losses incurred on fuel sales at government-controlled prices.
The total subsidy for 2008-09 is estimated at around Rs 1,06,000 crore. The government gives oil
bonds to the State-run OMCs to partly compensate their losses for keeping retail prices of four
fuels below market rates. The compensation was based on a ‘burden sharing formula’ approved
by theCabinet on October 11, 2007 while extending fuel subsidy schemes up to April 1, 2010.
Due to an unprecedented jump in crude oil price, the formula was later abandoned. The crude oil
prices had peaked at $147 a barrel in mid-July 2008.

Factory output drops to negative terrain: Industrial production unexpectedly fell 0.4% in
October 2008, shocking policy- makers. It slipped into negative territory for the first time in 15
years, highlighting the case for further aggressive interest rate cuts and fiscal measures to shore
up a slowing economy. The drop was on the back of a 1.2% year-on-year contraction in
manufacturing activity, confirming fears the economic slowdown was gathering pace amid a
faster-than expected drop in demand slowdown in overseas and domestic markets.
Manufacturing accounts for nearly 80% of the Index of Industrial Production (IIP), which rose by a
revised 5.5% in September 2008.

PMO nod to new pay panel for armed forces: The Prime Minister’s Office has approved a
separate pay commission for the armed forces. The Seventh Pay Commission for soldiers would
be delinked from the civilian pay panel. The decision comes after a committee, headed by
External Affairs Minister Pranab Mukherjee, submitted its report to review the concerns in the
armed forces. The concerns were raised after the Sixth Pay Commission recommended placing
lieutenant colonels and equivalent ranks in the Air Force and Navy at a lower pay band than their
counterparts in the paramilitary/Group A services and IAS. The government has also agreed to
accommodate lieutenant colonels in a higher pay band and increase their monthly salary by Rs
8,000. However, the government has not yet addressed the sweeping discontent in the military’s
higher echelons over lieutenant generals and their equivalent being excluded from the higher pay
band.

Centre accepts 70% pay hike for teachers: In line with the Sixth Pay Commission
recommendations for Central government employees, the Union government has accepted the
G.K. Chadha Committee report recommending a 70% hike in pay scales of teachers. Other
recommendations in the report include a uniform retirement age of 65, opportunities for re-
employment up to 70 years, flexibility to accommodate talent through incentives, and one-time
grants for research for teachers in Central, State and deemed universities. At the early level, the
recommendations aim to attract talented young people hoping to get into the teaching profession.
Among other things, it includes advance increment, enhanced research grants and facilities for
housing and research. To boost research and consultancy projects, the panel also encourages
teachers in universities and college to accept consultancy, directing projects, registering patents,
R & D products and technology transfers.

Education schemes get Cabinet nod: The Cabinet Committee on Economic Affairs has
approved a scheme, National Mission on Education, to use the Information Communication
Technology (ICT) to provide personalized and interactive knowledge modules to students. The
scheme will cost Rs 4,612 crore in the 11th Plan. Over 18,000 colleges across India will get
computer infrastructure and connectivity, including all departments in 419 universities, deemed
universities and institutions of national importance. In another decision, the Cabinet approved the
Rashtriya Madhyamik Shiksha Abhiyan to increase enrolment rates in secondary education from
52.56 per cent at present to 75 per cent in 2012. Under the scheme 11,188 new schools will be
built and 44,000 existing schools strengthened and 1.79 lakh additional teachers will be
appointed.

India, US ink $2.1 bn defence deal: The Union government has signed the biggest-ever
defence deal with US—a $2.1 billion contract for eight Boeing P-8I Long-Range mari-time
Reconnaissance (LRMR) aircraft for Navy. India will get the first P-8I towards end 2012 or early
2013, with the other seven following in a phased manner by 2015-2016. The contract also
provides an option for India to order four to eight more such planes. Armed with torpedoes, depth
bombs and Harpoon anti-ship missiles, the P-8I will also be capable of anti-submarine warfare
and anti-surface warfare. They will replace the eight ageing and fuel-guzzling Russian Tupolev-
142M turboprops currently being operated by Navy.

India, Russia clinch civil nuclear accord: During the visit of Russian President Dmitry
Medvedev in December 2008, New Delhi and Moscow signed an agreement on civil nuclear
cooperation. Russia is the third country to sign such an agreement with India after France and
US. India also signed the $1.2 billion deal to buy 80 Mi-17 V-5 helicopters even as both countries
work towards resolving “outstanding issues” over the lease of a nuclear-powered submarine and
huge cost escalation in aircraft carrier Admiral Gorshkov’s refit. In the initial stages, Russia will
help India build two additional nuclear power plants at Kundankulam. Even before the NSG
waiver, Russia was helping India build two 1,000 MW nuclear power plants at the same site. The
Russians, however, had to wait for the NSG waiver to India for a more focused N-cooperation.
More such power plants of Russian design, according to the two sides, will come up at other
places in the country.

Jammu & Kashmir elects new government: In first week of January 2009, the decks were
cleared for Omar Abdullah, 38, to become the youngest and the 13th Chief Minister of Jammu
and Kashmir after his party, the National Conference (NC), and the Congress decided to share
power in the State. Former Speaker and Congressman Tara Chand has been appointed as the
new Deputy Chief Minister. The NC emerged as the single biggest party in the 87-member State
Assembly after winning 28 seats in the month-long elections. The People’s Democratic Party
(PDP) and the Congress, which had an alliance government over the past six years, followed with
21 and 17 seats, respectively. The BJP sprung a major surprise by emerging victorious in 11
constituencies.

BJP secures majority in Karnataka Assembly: Karnataka’s ruling Bharatiya Janata Party
(BJP) won five out of eight seats in crucial by-elections, cementing its hold in the State’s
Legislative Assembly where it had been short of an outright majority by three seats since May
2008. The BJP now has 115 out of 224 Assembly seats. The by-polls also marked the entry of
Deve Gowda’s daughter-in-law Anita Kumara-swamy into Karnataka politics—the fourth member
from the Gowda family to do so. She won on a
JD(S) ticket from Madhugiri constituency.

Parliament passes Bills on anti-terror apparatus, NIA: The Parliament, despite opposition
from Left parties on select provisions, has approved the anti-terror Unlawful Activities
(Prevention) Amendment (UAPA) Bill—which analysts say is similar to the Prevention of
Terrorism Act (POTA), repealed after the Congress-party-led United Progressive Alliance (UPA)
assumed power. The complementary National Investigation Agency Bill, 2008, that seeks to
create a federal agency to investigate terror-related incidents has also been passed. After the
President’s assent the National Investigative Agency (NIA) started functioning from January 1,
2009.

Right to Education Bill: Almost six years after Parliament passed the 86th Constitutional
Amendment, the government has introduced the Right of Children to Free and Compulsory
Education Bill in the Rajya Sabha. The 86th Amendment made free and compulsory education for
children between the age of 6 and 14 years a fundamental right. The proposed legislation
provides a blueprint for systemic reforms in the elementary education. It promises to counter the
growing lobby for the privatization of school education. The legislation is, in fact, a step towards
the common school system first proposed by the Kothari Commission.
Self-regulation guidelines for media in place: With visual media drawing the flak for coverage
of the Mumbai mayhem and the government mulling an emergency protocol, India’s broadcasters
association has unveiled self-regulatory guidelines. These include no live reporting of hostage
crises and blocking information which may help terrorists. The guidelines, billed as first big step
towards self-regulation, were formulated and unveiled by the News Broadcasters Association.
Among the major guidelines are: Don’t give live coverage of hostage crises; Block information
that may help terrorists; Don’t disclose details of hostages; withhold sensitive information on
rescue operations; Avoid live contact with victims and with security personnel engaged in rescue
operations in 26/11-like situations; Avoid unnecessary repetition of archival footage which may
agitate the minds of viewers.

Cash for vote scam: A Lok Sabha panel probing allegations that Members of Parliament (MPs)
were bribed to vote in favour of the United Progressive Alliance (UPA) government in the July 22,
2008 trust vote gave a clean chit to two politicians, even as committee members belonging to the
Opposition Bharatiya Janata Party (BJP) and the Left submitted dissent notes while differing with
the conclusions. The two Rajya Sabha MPs at the centre of the controversy were Samajwadi
Party general secretary Amar Singh and Congress President Sonia Gandhi’s political
secretary Ahmad Patel.

Administrative Reforms Commission: In what will be one of the biggest changes in the
bureaucratically-run Indian governance system, the Administrative Reforms Commission (ARC),
headed by Congressman M. Veerappa Moily, has suggested much-desired changes that aim to
free the system from political meddling and also from the grip of bureaucrats hiding behind self-
serving safety nets. The ARC wants a change in the profile and method of recruiting civil servants
to provide for a lateral entry on earmarked posts, identify specialists and have accountability. It
also rules out assured promotions, besides having a civil services authority to administer the
services. These are among the dozen new path-breaking suggestions, probably the biggest since
Lord Thomas Macaulay laid down the basic policy governing recruitment to civil services in India
in 1854. Among the major recommendations are: Lower age profile, lateral entry; Armed forces
personnel can apply for top IPS posts;
Higher accountability; No assured promotions; New civil authority to control and decide on
selections; Change in exam system; No deputation for IAS for profit-making bodies.

Terror strike in Guwahati: The year 2009 began with terror striking, this time in Assam. Three
serial blasts in as many hours, triggered by suspected ULFA militants, left five people dead and
over 60 injured in Guwahati. The explosions took place a few hours before P. Chidambaram flew
in for his maiden visit as Home Minister. Terrorists appeared to mock heavy security put in place
for the New Year in the wake of the 26/11 carnage and for the Home Minister’s visit. Assam Chief
Minister Tarun Gogoi admitted that there were security lapses.

CURRENT INTERNATIONAL AFFAIRS

Hasina wins Bangla polls: Bangladesh’s charismatic leader Sheikh Hasina, who favours strong
ties with India, scripted a landslide victory on December 30, 2008, trouncing rival Bangladesh
Nationalist Party (BNP) in the country’s first polls in seven years, restoring democracy in the
impove-rished nation after two years of military-led rule. Hasina’s Awami League-led alliance
clinched 258 seats of the total 300 seats in Parliament leaving only 31 constituencies to her arch
rival Khaleda Zia’s Bangladesh Nationalist Party-led four-party alliance.

Israel clobbers Gaza: In retaliation to constant rocket attacks by Hamas militants in Gaza Strip,
on December 27, 2008 Israel retaliated with air strikes on suspected Hamas hideouts. More than
300 people were killed in first 24 hours of the constant strikes by Israeli forces. Israeli leaders
said the campaign was a response to almost daily cross-border rocket and mortar fire that
intensified after Hamas, as Islamist group in charge of the coastal enclave Israel quit in 2005,
ended a six-month ceasefire.

LTTE capital Kilinochchi falls to Lankan army: The Sri Lankan army took control of the
northern town of Kilinochchi on January 2, 2009, the so- called administrative capital of the LTTE
from where the Tigers ran a de facto State for nearly 10 years. The fall of Kilinochchi is of great
symbolic importance as for many years the LTTE had maintained that government troops would
never gain control of the area.

Students riot bring Greece to a halt: In the second week of December 2008, protesters
attacked Athens’ main courthouse with firebombs during a hearing for police officers whose
shooting of a teenager set off rioting. The strike shut down schools, public services, hospitals and
flights, increasing pressure on the fragile conservative government of Prime Minister Costas
Karamanlis. Riot police and youths also clashed in the city center during a demonstration by more
than 10,000 people to protest the conservative
government’s economic policies. The demonstrations and the strike, called by Greece’s two
largest labour unions’ umbrella groups that include virtually all public sector and many private
employees, were scheduled before the riots broke out. They were fuelled, however, by anger at
the handling of the riots by the government, which holds a single-seat majority in the
Parliament.

Opposition leader is Thai PM: On December 15, 2008, Opposition leader Abhisit Vejjajiva was
selected as Thailand’s third Prime Minister in as many months, taking control with a slender
majority in Parliament and an economy teetering on the brink of recession. In a sign of the trouble
in store for the Oxford-educated economist, at least 200 supporters of the previous
administration, sacked by the courts earlier, blocked access to Parliament and smashed windows
of cars carrying MPs who had backed him. Demonstrators denounced the 44-year-old as a front
man for the military, which ousted elected leader Thaksin Shinawatra in 2006 and which has
been accused of political meddling ever since. Born in Britain to a pair of medical professors,
Abhisit was
educated at Eton college and then Oxford University, where he graduated with first class honours
in Politics, Philosophy and Economics. He entered the Thai Parliament in 1992 as one of its
youngest members.

Russia, Ukraine gas row: On the first day of 2009, Russia and Ukraine looked no closer to
compromise over a gas row that disrupted supplies to at least four European Union (EU)
countries. Poland, Hungary, Romania and Bulgaria reported drops in supplies after Russian
State-controlled gas export monopo-ly OAO Gazprom cut off Ukraine on New Year’s Day in a row
over prices. The EU, which gets about one-fifth of its gas from pipelines that cross Ukraine,
demanded that transit and supply contracts be honoured. Moscow said Kiev was stealing gas
intended for Europe and playing political games. Ukraine accused Russia of using energy
blackmail and of not providing enough gas for the proper functioning of the transit system. A
similar dispute briefly disrupted supplies to Europe three years ago. That crisis prompted calls for
the EU to diversify its energy supplies, but it has struggled to break its reliance on Russian gas.
Some policy-makers see parallels with Russia’s treatment of Ukraine which, like Georgia, has
angered the Kremlin by seeking to join the North Atlantic Treaty Organisation or NATO.

Worldwide bailouts 10 times bigger than Indian economy: In their efforts to tackle the global
economic crisis, the rescue packages announced by the governments across the world have
crossed 10 trillion-dollar mark (about Rs 50,00,000 crore), an amount equivalent to nearly 10
times the total size of Indian economy. The amount is believed to grow even bigger with the
turmoil still being in expansion mode. A lion’s share of about three-fourth of the worldwide bailout
package of about $ 10.1 trillion has come from the world’s biggest eco-nomy, the US, whose total
national debt has also incidentally crossed the 10 trillion-dollar mark.
Nearly one billion hungry people worldwide: There are 963 million hungry people worldwide,
or 40 million people more than in 2007, according to the UN Food and Agricultural Organisation
(FAO). In its latest report on hunger worldwide, FAO has said this backward step stemmed mainly
from soaring food prices and warned that the situation might become worse by the international
economic crisis. According to the experts, the increase in the number of hungry people worldwide
means that “in three years we lost virtually all progress made in 1990-2005.”

The great Madoff rip-off: Bernard L. Madoff, the 70-year-old founder of Bernard L. Madoff
Investment Securities was arrested on December 11, 2008, for an alleged fraud of around $50
billion. If
convicted, he faces 20 years in prison and a maximum fine of $5 million. He was offering
attractive returns to new investors and made it look as if he was investing in blue-chip stocks and
options, but there was very little capital at the heart of the operation. He was actually running a
Ponzi scheme—a pyramid scheme which uses cash from new customers or investors to pay
returns to existing investors. It does little legitimate business, but just recycles money. The
scheme depends on a constant stream of new investors to fund the payouts. Madoff kept few
records and was clever at hiding the alleged fraud for 10 years.

JANUARY
CURRENT NATIONAL AFFAIRS

India, Kazakhstan ink N-accord: As part of its efforts to boost the country’s energy sources,
India, on January 24, 2009, signed a civilian nuclear energy cooperation agreement with the
uranium-rich Kazakhstan. The agreement was signed during the visit of President Nursultan
Nazarbayev. India and Kazakhstan also signed four other key accords, including an extradition
treaty. President Nazarbayev was also the chief guest at the Republic Day parade.

Afghan President’s visit: Expressing solidarity with India in the wake of the Mumbai terror
attacks, Afghan President Hamid Karzai, during his visit on January 12, 2009, joined Prime
Minister Manmohan Singh in castigating Pakistan for reneging on its commitment not to allow the
misuse of its territory for terrorist activities. This was President Karzai’s second visit to New Delhi
within six months. He held extensive talks with Prime Minister Manmohan Singh on a wide range
of issues, but the focus was on the Mumbai terror attacks.

India inks safeguards pact with IAEA: On February 2, 2009, India signed a safeguards
agreement with the International Atomic Energy Agency (IAEA) which paves the way for the
supply of atomic fuel and
technology by the international community to India after 34 years of nuclear isolation. The
agreement would effectively bring 14 of India’s nuclear reactors under non-proliferation
inspections of the international atomic watchdog. The IAEA currently applies safeguards to six
nuclear reactors in India. The India-specific safeguards agreement was unanimously approved
by the IAEA Board of Governors on August 1, 2008.

RBI leaves rates untouched, sees lower 7% growth: The Reserve Bank, on January 27, 2009,
lowered the economic growth forecast to 7%, saying the global economic crisis has hit India
shores, but kept key policy rates and ratio unchanged. The bank also
lowered inflation estimates to 3% by March-end. In its quarterly review of the annual monetary
policy, the apex bank extended special refinance facilities to banks up to September 30 for
providing liquidity support to meet the funding requirements of mutual funds, non-banking finance
companies by relaxing the maintenance of SLR up to 1.5%. The bank has injected over Rs
3,00,000 crore liquidity into the financial system through several changes in policy rates since
October 2008. In the last three months, the repo rate, at which the apex bank lends short-term
funds to banks, has been reduced from 9% to 5.5% and the reverse repo, at which the RBI
accepts funds from banks, has been lowered from 6% to 4%. RBI said that the Central
government’s fiscal deficit—the money spent more than the revenue raised and borrowed funds
—would shoot up from the earlier estimate of 2.5% to 5.9% of the value of the country’s total
economic output.

Cabinet okays Rs 25,000 cr for NBFCs: The government has set in motion the process of
providing liquidity support of up to Rs 25,000 crore to cash-strapped Non-Banking Finance
Companies (NBFCs) to enable them to pay existing liabilities as was announced in the second
stimulus package to spur sagging economic growth. A Stressed Asset Stabilisation Fund, set up
for acquiring the stressed assets of IDBI, would function as a Special Purpose Vehicle (SPV) to
provide money to non-deposit taking systemically important NBFCs. The SPV would issue
government guaranteed securities, subject to a total amount of securities not exceeding Rs
20,000 crore with an additional Rs 5,000 crore, if needed. The funds will be used by NBFCs only
to repay existing liabilities he said, adding the RBI would issue guidelines for pricing and lending
in consultation with the Department of Financial Services.

SEBI unveils norms for pledging of shares: The Securities and Exchange Board of India
(SEBI) has spelt out the reporting norms for companies whose promoters have pledged shares to
a third party. The market regulator has asked companies to disclose details of the promoters’
pledged shares within seven days of the date of receiving information from the promoters. In a
circular dated January 28, 2009, SEBI said the promoters, who have pledged shares, have to
disclose the details to the company within seven days of such a transaction. Further, the market
regulator said that companies should disclose all the details pertaining to the promoters’ share
pledge, if at the end of any quarter, the total number of such pledged shares exceeds 25,000 or
one percentage of the total shareholding, whichever is lower.

India lags in health spending: At 4.8 per cent of the GDP, India’s total annual health
expenditure (THE) is among the poorest in the world, with only Nigeria, Indonesia and
Bangladesh reporting lesser expenditure. The WHO recommends a total annual health
expenditure of 6.5 per cent of a country’s GDP. The public health expenditure (PHE) in the
country is as low as Rs 215 per capita per year. It works out to a shockingly low 1.2 per cent of
the GDP and 25 per cent of the total health expenditure. That the basic health services are yet to
reach the low-income groups is clear from the fact that a whopping 75 per cent funding of the
health sector still comes from private sources. The national Samples Survey Organisation’s 60th
round has reported 126 per cent increase in urban hospita-lization costs and 78 per cent increase
in rural hospitalization costs in the private sector as compared to the 52nd NSSO conducted in
1995.

India losing 1m neonates, 78,000 mothers annually: India is losing one million neonates
annually, 82 per cent of them to birth-related infections (pneumonia,
tetanus and diarrhea), asphyxia and pre-term birth, finds the latest UNICEF State of the World
Children (SOWC) report. Maternal health scenario is even worse, with 78,000 women dying each
year from complications related to pregnancy and childbirth. Three-quarters of all maternal deaths
in India are occurring from hemorrhage (38 per cent), followed by infections (11 per cent), unsafe
abortions (8 per cent) and hypertensive disorders (5 per cent). On an average, every seven
minutes, one woman dies of pregnancy problems; institutional delivery rate remains a poor 40 per
cent.

State of education—Puducherry best, Bihar worst: India now has lesser number of single-
teacher schools than it had a year ago. The latest government study on the state of elementary
education in India shows that percentage of single-teacher schools in the country has declined
from 11.76 in 2006-07 to 10.13 in 2007-2008, an improvement of 1.63 per cent. Among the
States, Puducherry is ranked first in both primary and
elementary education, while Bihar, Arunachal, West Bengal and Jhar-khand are at the bottom.
Kerala is the first in upper primary education, while Delhi and Chandigarh are fourth and fifth,
respectively. The government also lists Muslim students as a separate category saying the
percentage of Muslim enrolment in primary classes increased to 10.49 in 2008 as against 9.39
the previous year.

Jharkhand Chief Minister resigns following loss in by-poll: On January 12, 2009, Jharkhand
Chief Minister Shibu Soren submitted his resignation to Governor Syed Sibte Razi, ending
speculation on his continuance in the post after his defeat in the Tamar Assembly by-election.
On January 19, the Centre imposed President’s rule in Jhar-khand as no political alliance was in
a position to form an alternative government. Soren lost to the Jhar-khand party’s Gopal Krishna
Patar, also known as Raja Peter—a local Robin Hood—by nearly 9,000 votes. Raja Peter joins
the ranks of MLAs with criminal backgrounds in
Jharkhand.

Satyam—A Rs 7,000 Crore Lie: Ramalinga Raju, the politically-connected promoter-chairman of

Hyderabad headquartered Satyam Computers was lying for years to shareholders, employees
and the world at large, building up to India’s largest corporate fraud of over Rs 7,000 crore.
India’s fourth largest IT company—after TCS, Infosys and Wipro—was for years cooking its
books by inflating revenues and profits, thus boosting its cash and bank balances; showing
interest income where none existed; understating liability; and overstating debtors position
(money due to it). This wasn’t some fly-by-night operator that had been caught out. Satyam is
listed on the NYSE, boasts 185 Fortune 500 companies and the US government among clients
and employs 53,000 people. The Union government has entrusting the probe to the Serious
Fraud Investigations office, or SFIO.

Heroes, villains can smoke again: Amitabh Bachchan and Shah Rukh Khan can again blow
rings of smoke on celluloid. The Delhi High Court has struck down the Ministry of Health’s 2005
notification banning smoking scenes. The court said the ban violated a filmmaker’s right to
freedom of speech and expression as guaranteed under Article 19. “Directors should not have
multi-farious authorities breathing down their necks. A film must reflect the realities of life. It may
be undesirable but it exists and is not banned by law”, Justice Sanjay Kishan Kaul said. The order
came on a petition filed by director Mahesh Bhatt questioning the validity of a notification under
the Cigarettes and Other Tobacco Products (Prohibition of advertisement and Regulation of
Trade and Commerce, Production, Supply and Distribution) Act.

CURRENT INTERNATIONAL AFFAIRS

Obama takes over as 44th President of USA: On January 20, 2009, Barack Obama became
first black American to occupy White House, fulfilling Martin Luther King’s dream sooner than
anyone had imagined. He was sworn in as the 44th President of the United States. The event
marked the end of an eight-year chapter of George W. Bush’s Presidency, a record blighted by
unfinished wars, record deficits and an economy in recession.
United States pulls back as Iraqis vote: On February 1, 2009, Iraqis across the country voted
in provincial elections that will help shape their future, but regardless of the outcome it is clear
that the Americans are already drifting offstage and that most Iraqis are ready to see them go.
The signs of mutual disengagement were everywhere. In the days leading up to the elections, it
was possible to drive safely from near the Turkish border in the north to Baghdad and on south to
Basra, just a few miles from the Persian Gulf without seeing an American convoy. In the Green
Zone, the Americans retreated to their vast, garrisoned new embassy compound. Iraqi soldiers
now handle all checkpoints. In the US, many view the war as already over, even though more
than 140,000 American soldiers remain in Iraq. Allies of Iraq’s Prime Minister appeared to have
made gains in the provincial elections, rewarding groups credited with reining in insurgents and
militias, according to unofficial projections.

$138-b lifeline for Bank of America: In yet another rescue act, the US government decided to
inject $20 billion of fresh capital into financial services major Bank of America, apart from
standing guarantee to its toxic assets worth $118 billion. While the treasury will invest $20 billion
in the firm in return for preferred stocks, FDIC, along with the Treasury, will guarantee bad assets.
Bank of America would also comply with enhanced exe-cutive compensation restrictions. The
bank, which recently acquired Merrill Lynch, has already received $25 billion from the Troubled
Asset Relief Program.

UK launches second rescue plan: Britain unveiled a second bank rescue plan and Royal Bank
of Scotland recorded the biggest loss in UK corporate history in the month of January 2009, while
a cut in Spain’s credit rating caused fresh market wobbles. Announcing Britain’s bank bailout,
Finance Minister Alistair Darling said fourth-quarter GDP figures would confirm the UK was in
recession for the first time since 1992. The European Commission, meanwhile, forecast the euro
zone economy would contract for the first time in 2009, by 1.9%, and grow by only 0.4% in 2010.
RBS said it made a loss of up to £28 billion ($41.3 billion) in 2008, including a huge goodwill hit
on its purchase of parts of ABN Amro in 2007. Britain pumped £37 billion into the banks in
October 2008 but credit remains scarce. The UK government will now allow banks to insure
themselves against losses on their riskiest assets. It will offer guarantees on their debt and set up
a £50-billion fund to buy up high-quality securities to get cash flowing freely again.

Sri Lanka—LTTE last post falls, Army says war over: On January 25, 2009, Sri Lankan troops
rampaged through stiff resistance to capture the garrison town of Mullaitivu, the last military
stronghold of the Liberation Tigers of Tamil Eelam, making a decisive victory in the war for
territorial control of the island’s north and east. Earlier, on January 9, Elephant Pass, the last
LTTE stronghold on the A-9 main highway also fell and enabled the military to re-open the Jaffna-
Kandy supply route for people and troops instead of relying on supplies through ships.

Middle East—Tensions remain despite ceasefire: On January 18, 2009, Israel decided to halt
its Gaza offensive without any agreement with Hamas. However, Hamas vowed to fight on.
Gaza’s border crossings with Israel were initially allowed to open only for humanitarian supplies,
with a more permanent solution linked to progress over negotiations. Later, Hamas also
announced an immediate ceasefire by its fighters and allied groups in the Gaza Strip, adding that
the Islamists gave Israel a week to pull out its troops. During the 22-day-long offensive, Israeli
attacks killed more than 1,300 Palestinians, including some 700 civilians. Hundreds of gunmen
were among the dead. Ten Israeli soldiers were killed as well as three Israeli civilians hit by
rockets. The mounting civilian death toll in the Gaza Strip and mounting destruction and hardship
in the territory brought strong international pressure on Israel to stop the
offensive.

Obama, Hu discuss trade imbalances: On January 31, 2009, US President Barack Obama told

Chinese leader Hu Jintao in a phone call that the two countries must work together to correct
global trade imbalances and unclog credit markets to fight the world economic crisis. Hu told
Obama that China firmly opposed trade or investments protectionism as part of settling the crisis
and said Beijing would join Washington in promoting stable development at an economic summit
in London in April 2009. Hu also acknowledged US efforts to address the world economic crisis
and said the two countries should strengthen cooperation. In 2008 China overtook Japan as the
largest foreign holder of US government debt and held $681.9 billion in US Treasuries as of
November 2008. With the US expected to issue new debt to help pay for a huge economic
stimulus package, China’s holdings could grow.

US cuts $ 55 m of terror aid to Pakistan: The Obama administration’s threat to make Pakistan
more accountable in the war on terror is materializing quickly, with Washington now withholding
$55 million from the latest tranche of reimbursement of expenses that Pakistan claims to have
incurred while fighting against terrorism. The decision was taken after auditors raised objections
about the bills
given by Pakistan for expenses incurred in the war on the Pakistan-Afghan border. Financial
advisor in Pakistan PM’s office, Shaukat Tarin, confirming the development, put down the US
decision to a change in accounting procedures. He added that Pakistan has demanded a
reassessment from Washington to enable release of the remaining amount. But the decision
assumes significance in view of the Obama administration’s known stance that Islamabad must
deliver on its commitment as a member of the coalition against terror, in order to receive
assistance.

US sanctions on Pak N-scientist, 12 others: The US State Department has slapped sanctions
on 13 individuals and three private companies because of their involvement in the Pakistan-led
Abdul Qadeer Khan nuclear-proliferation network. The sanctions followed a multiyear US
government review of information regarding the A.Q. Khan network. The entities provided an
extensive international network for the proliferation of nuclear equipment and know-how that
offered one-stop shopping for countries seeking to develop nuclear weapons, the State
Department said. In 2008 a UN nuclear watchdog said the A.Q. Khan network smuggled nuclear
weaponisation blueprints to Iran, Libya and North Korea and was active in 12 countries.

Lashkar-e-Toiba’s latest name: Jamaat-ud-dawa, the banned charity front of Lashkar-e-Toiba,

has resurfaced as the Tehreek-e-Tahafuz Qibla Awal following the United Nations Security
Council ban. A video in public domain shows JuD leaders and activists holding a rally under the
banner Tehreek-e-Tahafuz Qibla Awal. The Indian establishment had been voicing concerns
about JuD renaming itself in a bid to escape UNSC sanctions that included freezing of accounts,
travel and arms ban. Sources have pointed out that JuD remained active in spite of the ban and
kept updating its website regularly. Headquarters of JuD in Muridke was never shut down and
reports said that all educational institutes, hospitals and seminaries of JuD were operating
routinely. The change of name will basically allow JuD to escape restrictions placed on
organisations and individuals put on UNSC consolidated list of terror groups and terrorists and
operate funds in banks’ accounts frozen by the UNSC ban

FEBRUARY
CURRENT NATIONAL AFFAIRS

Third stimulus package:The Union government, on February 25, 2009, unveiled a Rs 30,000-
crore
stimulus package, the third in a row to boost demand in an economy that has been feeling the
heat of the global meltdown. The package includes a cut in the median excise duty and service
tax rates by 2%. All products that attracted an excise rate of 10% will now be subject to only 8%
while service tax on all products is down to 10%. On the other hand, this means the fiscal deficit
of the government in 2009-10 will increase to Rs 3,61,935 crore, from Rs 3,32,835 crore
estimated in the interim budget announced on February 16, 2009, provided all other estimates
remain the same. So, fiscal deficit will again cross 6% of GDP as in 2008-09.

Interim Budget: On February 16, 2009, Finance Minister Pranab Mukherjee presented the
interim Budget to the Parliament. The largely insipid Interim Budget, however, ensured adequate,
even heightened, budgetary allocation to its major flagship programmes affecting the “common
man”. Enhanced allocations have, however, been made only to sectors that promise employment
generation and infrastructure development and help, in turn, to maintain the fiscal tempo by
addressing the economic slowdown. NREGA, JNNURM (Jawaharlal Nehru Urban Renewal
Mission) and Bharat Nirmal programmes have emerged the biggest gainers in this category.
Budget allocation for education has increased by about Rs 4,000 crore over 2008-09. The
government has allocated Rs 1,41,703 crore for defence, which is 34 per cent rise over the
previous fiscal and is one of the steepest hikes in recent years. The revised fiscal deficit for 2008-
09 is now estimated at as high as 6 per cent of Gross Domestic Product (GDP), against the
budget estimate of 2.5 per cent. In money terms, the fiscal deficit is Rs 3,26,515 crore, against
the intended Rs 1,33,287 crore or nearly 2.5 times the targeted amount.

Railway Budget 2009: On February 14, 2009, Union Railway Minister Lalu Prasad presented the
Railway Budget to the Parliament. The high point of this Budget was a 2% cut in most long
distance fares. The railways were set to achieve a cumulative cash surplus of Rs 90,000 crore
over the course of his tenure, he pointed out. Passenger traffic is expected to go up by 7 pc and
gross traffic receipts are estimated at Rs 93,159 cr.

Steps to boost exports: During 2008-09, India did achieve an export growth of 30.9 per cent till
September 2008, but since then there has been a setback due to the global recession. The
following sops have been announced by the Union government to boost exports: Customs duty
under export promotion capital goods scheme cut to 3 per cent from 5 per cent; Special incentive
of Rs 325 crore for various sectors like handmade carpets, leather and technical textiles from
April 1, 2009; Threshold limit for recognition as premier trading house reduced to Rs 7,500 crore;
Benefit of 5 per cent under “focus product, focus market” scheme for export of handmade
carpets; Authorised persons of gems and jewellery units can personally carry imported gold of up
to 10 kg; Obligation under export promotion capital goods scheme extended till 2009-10 for sops
availed during 2008-09; Opening of an independent office of DGFT at Srinagar.

Unique ID project: Marking the beginning of the Herculean task of providing every Indian citizen
with a National Identity Card, the UPA government has earmarked Rs 100 crore for setting up the
Unique Identification Authority of India (UIAI) in the annual plan of 2009-10. The project is aimed
at establishing citizenship, addressing security-related issues and containing frauds, especially in
government run schemes. The UIAI will be responsible for creating and maintaining the core
database and laying down all necessary procedures for issuance and use of the unique ID card,
including arrangements for collection, validation and authentication of information, proper security
of data and rules for sharing and access of data. Initially, the UID number will be assigned to all
voters by building on current electoral roll data. Progressively, other persons, including those
below 18 years, will be added to the list.

S&P review lowers credit rating: India’s credit rating is now just one step away from junk
status, as Standard and Poor’s ratings services (S&P) have lowered its outlook on the country’s
long-term sovereign rating from stable to negative, because tax cuts and extra spending to win
votes and fight the economic slowdown have pushed the fiscal deficit to a record high. Such a
move can raise the cost for local firms borrowing abroad as well as weaken the rupee, though
some analysts do not expect that to happen.

Number of female post graduates in urban India rises: According to the latest report of the
National Sample Survey Organisation (NSSO), the number of post graduates in every 1,000
males surveyed has increased from 28 in 2001-02 to 35 in 2006-07 in urban India. The number of
female post graduates has increased from 19 to 26 during the same period. The number of male
and female graduates during the same period has increased from 97 and 67 to 111 and 82,
respectively. The incidence of illiteracy in rural areas has declined from 39.5% in 2001-02 to
34.9% in 2006-07. In urban sector, the same has declined from 19.4% to 16.5% during the same
period. What is significant is that in both urban and rural sectors, the illiteracy rate of female has
declined at a higher rate than that of the male. Female illiteracy rate has declined by 4.6
percentage points in rural areas and 3.4 percentage points decline of the male illiteracy rate in
rural and urban sector respectively, during 2001-02 to 2006-07.

India tops world hunger chart: India is failing its rural poor with 230 million people being
undernourished the highest for any country in the world. Malnutrition accounts for nearly 50% of
child deaths in India as every third adult (aged 15-49 years) is reported to be thin (BMI less than
18.5). According to the latest report on the state of food insecurity in rural India, brought out by
the United Nations World Food Programme (WFP), more than 1.5 million children are at risk of
becoming malnourished because of rising global food prices. The report said that while general
inflation declined from a 13-year high exceeding 12% in July 2008 to less than 5% by the end of
January 2009, the inflation for food articles doubled from 5% to over 11% during the same period.
India ranks 94th in the Global Hunger Index of 119 countries, the report said. More than 27% of
world’s undernourished population lives in India.

Government fiddle opens floodgates to FDI: The Union government has relaxed guidelines on
Foreign Direct Investment (FDI) for companies owned and controlled by Indian citizens. This
effectively means foreign investment in FDI-restricted sectors like telecom, defence production
and single-brand retail can cross set limits. The new guidelines also say that an investment made
by a non-resident entity into an Indian company would be counted as foreign investment. Under
the existing norms, if a firm with, say, 40% foreign equity and 60% Indian equity had invested Rs
100 crore in another firm, Rs 40 crore of this amount would be treated as FDI. Under the revised
norms it will now be treated as zero FDI. Relaxation in foreign direct investment (FDI) norms
would not apply to sectors such as multi-brand retail, gambling, atomic energy and lottery where
the government prohibits foreign investment.

Union government to infuse capital in three PSU banks: In order to strengthen the Public
Sector Banks, the Union government has decided to infuse Rs 3,800 crore into three State-run
banks—Central Bank of India will get Rs 1,400 crore, while UCO Bank and Vijaya Bank will get
Rs 1,200 crore each. The capital
infusion would be done in two tranches—the first tranche would be made available during 2008-
09 and the remaining in 2009-10. The capital infusion will help these banks to raise capital
adequacy over 12%, much above the Basel II norms of 9%. The government holding in Central
Bank of India currently stands at 80.2% cent, in UCO bank 76%, while in Vijaya Bank it is 53%.

CEC’s recommendation rejected by the President:President Pratibha Patil has rejected the
controversial recommendation by Chief Election Commissioner (CEC) N. Gopalaswami for the
removal of Election Commissioner Navin Chawla, who is now to head the Commission after Mr
Gopalaswami’s term comes to end in April 2009. The decision came as no surprise since the
government had said CEC was not empowered to seek removal of a fellow Commissioner except
when a Presidential reference was made. Gopalaswami’s action had also attracted sharp
criticism from legal luminaries, although main Opposition party, Bharatiya Janata Party, had
strongly supported the move. The battle in the three-member Election Commission had taken a
new turn on January 31, 2009 when Gopalaswami recommended the removal of Chawla on a
petition by the BJP, which had accused him of partisan functioning, sparking a furore.

General Election dates announced: India, the world’s largest democracy with 714 million
voters, will elect its representatives over five phases between April 16 and May 13, 2009. The EC
will also hold simultaneous polls in Andhra Pradesh, Orissa and Sikkim. Incidentally, this is the
first scheduled Parliamentary election after the Delimitation Commission redrew constituencies.
Delimitation has also pushed up the number of scheduled caste seats in Parliament from 79 to 85
and scheduled tribe seats from 41 to 47. The 2009 polls will also be first photo-electoral rolls-
based Parliamentary election, with 522 of the 543 Lok Sabha constituencies using this type of
rolls.

Standard drill during terror attack being readied:The Home Ministry is drawing up Standard
Operating Procedures (SOPs) to deal with terror attacks as part of its 100-day action plan to be
implemented by May 31, 2009. The guidelines, which will form part of the crisis management plan
of MHA, will cover all aspects of a counter-terror response, including rushing central forces like
NSG to the attack sites, evacuation of civilians and media from the site and its immediate
surroundings, monitoring of communication lines and the command structure to be followed by
various Central and State agencies as they confront terrorists. This is for the first time that SOPs
would be prescribed for tackling terror crimes. As of now, SOPs are in place for Central forces
and State police operating in Naxal-infested States.

Sukh Ram found guilty of corruption: After more than 12 years, the law has completed its first
course for former Telecom Minister Sukh Ram when a City Court in Delhi convicted him for
possessing assets disproportionate to his sources of income. Special CBI judge V.K. Maheshwari
held Sukh Ram guilty under provisions of the Prevention of Corruption Act, 1988, and amassing
the properties amounting to Rs 4.25 crore which were disproportionate to his known source of
income, between 1991 to 1996, when he was Minister of State for Communications in the
Narasimha Rao government. Sukh Ram has been handed down a three-year prison term.

Minorities Bill gets approval:The Lok Sabha has passed the National Commission for
Minorities Education Amendment Bill that grants statutory power to the Commission, which will no
longer need to consult States before according minority status to any educational institute. The
bill further enhances the strength of members of the Commission, which has several disputes
pending for redressal.

Dhaka proposes taskforce for terror: With the atmosphere between India and Bangladesh
clearing up under the Sheikh Hasina government, India has got a pledge from Bangladesh that it
would not allow terror groups to launch attacks against India from its soil. Security issues, along
with trade, were on top of the agenda during External Affairs Minister Pranab Mukherjee’s one-
day visit to Dhaka on February 9, 2009. Mr Mukherjee also discussed the viability of setting up a
regional taskforce to fight terror. The only two deals that were signed by Mr Mukherjee and his
Bangladeshi counterpart were on bilateral trade and investment. Mr Mukherjee said that the deals
would cut down the trade gap which has been an issue for Bangladesh.

IPL results in foreign players raking in the moolah: India, the cricketing nation, seemed to
laugh at the global meltdown at an auction in February 2009, where crores were spent buying the
services of 17 overseas players. Former England skippes Andrew Flintoff and Kevin Pietersen
went for about Rs 7.5 crore apiece ($ 1.55 million), making them jointly the highest
valued players in the Indian Premier League (IPL), more than M.S. Dhoni, bought for Rs six crore
in 2008. Bangladesh’s paceman Mashrafe Mortaza would not know how to react to the Rs 2.93
crore the Kolkata Knight Riders have paid for his commercial value. After all, he was valued at a
relatively low Rs 24.4 lakh. And then there was South African J.P. Duminy who was sold for Rs
4.64 crore. Whatever happened to the recession? Quipped actor Preity Zinta co-owner of Kings
XI Punjab: Recession or no recession, cricket and entertainment always sell. And the IPL is about
both.

CURRENT INTERNATIONAL AFFAIRS

Terror bouncer hits Lanka cricket team in Pakistan: On March 3, 2009, six Pakistani
policemen were killed and six Sri Lankan cricketers were injured when gunmen armed with
automatic weapons attacked the visiting team’s convoy as it headed for Lahore’s Gaddafi
stadium. A military helicopter later evacuated the cricketers as Sri Lanka cancelled its Pakistan
tour. Police said 12 terrorists were involved in the attack. India voiced its strong condemnation of
the dastardly attack on Sri Lankan cricketers in Lahore, warning that such incidents would
continue to occur until Pakistan dismantled the terrorist infrastructure on its territory.

Pakistan acknowledges part of Mumbai attack was planned there: Pakistan has accepted for
the first time that the Mumbai terrorist attacks were launched from its shores and at least partly
plotted on its soil. Interior Ministry Chief Rehman Malik also said Pakistan had arrested most of
the main suspects and had started criminal proceedings against them. India termed the
development as positive and expressed willingness to share what-ever it can after examining the
issues raised by Islamabad. The revelations appear to suggest that Pakistan is serious about
punishing those behind the November attacks, which killed 183 people and stirred fear that the
nuclear-armed neighbours could slide towards war.

Pakistan—Election ban for Sharif brothers: Triggering a fresh round of political instability in
Pakistan, former Prime Minister Nawaz Sharif and his brother, Shahbaz Sharif, Chief Minister of
the Punjab province, have been barred from contesting elections and holding office. Within hours
of the Supreme Court ruling on February 26, 2009, upholding the ban on the Sharif brothers,
Governor’s rule was imposed on the Punjab province. As people hit the streets in Lahore, Nawaz
Sharif accused President Asif Ali Zardari of being behind the move to disqualify him from
contesting elections and asked people to come out on the streets to protest the move. The PML-
N chief said that the bone of contention between his party and President Zardari was the NRO
(National Reconciliation Ordinance) under which criminal cases against Zardari and other
politicians were dropped by the Musharraf administration. The former PM said the reason why the
Chief Justice and other deposed judges were not being reinstated was because these judges
would question the validity of the NRO.

Taliban seal truce in Pakistan’s Swat: Taliban fighters and Pakistani officials agreed on
February 21, 2009, to a permanent ceasefire in the north-western Swat valley. The outlawed
Tahreek-i-Taliban Swat (TTS) formally accepted the Swat accord. It also promised to release all
security personnel in its custody, unconditionally. The Swat peace accord appeared progressing
substantially with life returning rapidly to normalcy in Swat’s main cities. Having been freed from
its engagement in Swat and Bajour, Pakistan army is likely to refocus full attention on tribal
militants along the Afghanistan border.

Bangladesh—BDR mutiny: The 33-hour mutiny by Bangladesh Rifles (BDR) troopers ended
February 26, 2009, as the rebels laid down their arms in the face of an imminent attack by the
army, which had moved tanks into position for an assault on the BDR headquarters in Dhaka.
The mutiny by troopers of the Bangladesh rifles, the country’s border guards, had spread to
several towns despite Prime Minister
Sheikh Hasina’s warning of stern action to quell the unrest. Political observers said the
government’s dilemma was that it was banking on the army to stop the rebellion, while the
troopers’ grievances are largely centred on poor wages and discrimination as compared to the
army.
India and China may hold the key to world’s economic survival: In a survey of the global
outlook for 2009, the Economist Intelligence Unit (EIU) makes some stark and dire observations.
EIU believes that the economic crisis could last at least a couple of years. While the EIU survey
says that China may hold the key to the world’s economic survival, many economists in India
believe that it could be both India and China. These are the only two countries that could account
for growth rates of at least 4.5%.

Time blames Bush, Clinton, Jiabao for financial crisis: Former US Presidents George W.
Bush and Bill Clinton, and Chinese Premier Wen Jiabao are on the list of 25 people to blame for
the financial crisis, compiled by Time magazine. The list also features former Federal Reserve
Chairman Alan Greenspan, past Securities and Exchange Commission Chief Chris Cox, former
Treasury secretary Hank Paulson and American Consumers, among others. Pointing out that
Bush embraced a governing philosophy of de-regulation, the magazine said it trickled down to
federal oversight agencies, which in turn eased off on banks, and mortgage brokers.

US economy drop biggest since 1982: The US economy suffered its deepest contraction since
early 1982 in the fourth quarter, shrinking at a much worse-than-expected at a much worse-than-
expected 6.2% annual rate as exports plunged and consumers slashed spending. A separate
report showed mounting job losses had turned consumers gloomier in February, evidence that
the US recession continues to deepen. The final Reuters/University of Michigan Consumer
Sentiment Index for February fell to 56.3 from January’s 61.2. The commerce department said
consumer spending which accounts for more than two-thirds of domestic economic activity,
dropped at a 4.3 per cent rate in the fourth quarter, the biggest decline since the second quarter
of 180. The spending decline dropped more than 3 percentage points off GDP.

Success of US stimulus tough to measure: Deciding whether the US government’s $ 1.5

trillion
economic bailout is a success or a failure may end up being more an exercise of politics and
perception than exact science. Markers for determining the outcome of the treasury’s $700 billion
in rescue funding for the financial sector and the $87 billion economic stimulus package are not
all clear-cut and can end up relying on eye-of-the-beholder judgements. There are “the what if”
scenarios and the possibility that the government’s best intentions will have unintended
consequences. But experts tend to agree that doing nothing was not an option and, regardless of
political affiliation. Some economists say the bailout of big banks was not helpful because it took
away their incentive to restructure by providing a taxpayer-funded cushion.

Additional American troops to Afghanistan: In an attempt to stabilize a deteriorating situation,

President Barack Obama has approved sending 17,000 more US troops to Afghanistan over the
next few months. It was Obama’s first major military decision. “There is no more solemn duty as
President than the decision to deploy our armed forces into harm’s way”, he said. The United
States already has 38,000 troops in Afghanistan, apart from 30,000 military personnel from allied
nations. But the violence is expected to rise further in the spring and afterwards in the run-up to
Presidential elections set for August 20, 2009. The new troops are expected to be deployed in the
south, which has been worst hit. The situation in Afghanistan, Obama said, had not received the
strategic attention, direction and resources it urgently required.

Pakistan signs FTA with China: China and Pakistan signed a Free Trade Agreement (FTA)
during the four-day visit of Pakistani President Asif Ali Zardari to Hubei and Shanghai, China.
Zardari’s mission was largely focused on economy and investment issues because the Pakistani
President did not get to meet the top echelons of Chinese leadership who were busy hosting the
first official visit of Hilary Clinton, the US Secretary of State. Meanwhile, China has signed an
agreement with Pakistan’s main Islamic party, Jamaat-e-Islami despite the fact that official credo
of China is atheism. A China observer said as part of the agreement with Beijing’s Communist
leaders, Jamaat-e-Islami has promised not to encourage Islamic Uighur separatists in the
Xinjiang region, which is a hotbed of the East Turkmenistan movement.

Bailed out US companies can’t hire people on H1-B: In what could be seen as a major blow to
Indian IT professionals, the US Congress has prohibited banks and firms receiving federal bailout

money from hiring people on H-1B visas in place of Americans laid off by them due to the
economic meltdown. The measure forms part of the American Recovery and Reinvestment Act,
popularly known as the Stimulus Bill. The Act makes a provision of USD 787 billion for reviving
the battered US economy. The measure as finally approved by the Congress, would require the
bailed-out banks to hire only Americans for two years unless they could prove they were not
replacing laid-off Americans with guest workers.

MARCH
CURRENT NATIONAL AFFAIRS

Third stimulus package:The Union government, on February 25, 2009, unveiled a Rs 30,000-
crore
stimulus package, the third in a row to boost demand in an economy that has been feeling the
heat of the global meltdown. The package includes a cut in the median excise duty and service
tax rates by 2%. All products that attracted an excise rate of 10% will now be subject to only 8%
while service tax on all products is down to 10%. On the other hand, this means the fiscal deficit
of the government in 2009-10 will increase to Rs 3,61,935 crore, from Rs 3,32,835 crore
estimated in the interim budget announced on February 16, 2009, provided all other estimates
remain the same. So, fiscal deficit will again cross 6% of GDP as in 2008-09.

Interim Budget: On February 16, 2009, Finance Minister Pranab Mukherjee presented the
interim Budget to the Parliament. The largely insipid Interim Budget, however, ensured adequate,
even heightened, budgetary allocation to its major flagship programmes affecting the “common
man”. Enhanced allocations have, however, been made only to sectors that promise employment
generation and infrastructure development and help, in turn, to maintain the fiscal tempo by
addressing the economic slowdown. NREGA, JNNURM (Jawaharlal Nehru Urban Renewal
Mission) and Bharat Nirmal programmes have emerged the biggest gainers in this category.
Budget allocation for education has increased by about Rs 4,000 crore over 2008-09. The
government has allocated Rs 1,41,703 crore for defence, which is 34 per cent rise over the
previous fiscal and is one of the steepest hikes in recent years. The revised fiscal deficit for 2008-
09 is now estimated at as high as 6 per cent of Gross Domestic Product (GDP), against the
budget estimate of 2.5 per cent. In money terms, the fiscal deficit is Rs 3,26,515 crore, against
the intended Rs 1,33,287 crore or nearly 2.5 times the targeted amount.

Railway Budget 2009: On February 14, 2009, Union Railway Minister Lalu Prasad presented the
Railway Budget to the Parliament. The high point of this Budget was a 2% cut in most long
distance fares. The railways were set to achieve a cumulative cash surplus of Rs 90,000 crore
over the course of his tenure, he pointed out. Passenger traffic is expected to go up by 7 pc and
gross traffic receipts are estimated at Rs 93,159 cr.

Steps to boost exports: During 2008-09, India did achieve an export growth of 30.9 per cent till
September 2008, but since then there has been a setback due to the global recession. The
following sops have been announced by the Union government to boost exports: Customs duty
under export promotion capital goods scheme cut to 3 per cent from 5 per cent; Special incentive
of Rs 325 crore for various sectors like handmade carpets, leather and technical textiles from
April 1, 2009; Threshold limit for recognition as premier trading house reduced to Rs 7,500 crore;
Benefit of 5 per cent under “focus product, focus market” scheme for export of handmade
carpets; Authorised persons of gems and jewellery units can personally carry imported gold of up
to 10 kg; Obligation under export promotion capital goods scheme extended till 2009-10 for sops
availed during 2008-09; Opening of an independent office of DGFT at Srinagar.

Unique ID project: Marking the beginning of the Herculean task of providing every Indian citizen
with a National Identity Card, the UPA government has earmarked Rs 100 crore for setting up the
Unique Identification Authority of India (UIAI) in the annual plan of 2009-10. The project is aimed
at establishing citizenship, addressing security-related issues and containing frauds, especially in
government run schemes. The UIAI will be responsible for creating and maintaining the core
database and laying down all necessary procedures for issuance and use of the unique ID card,
including arrangements for collection, validation and authentication of information, proper security
of data and rules for sharing and access of data. Initially, the UID number will be assigned to all
voters by building on current electoral roll data. Progressively, other persons, including those
below 18 years, will be added to the list.

S&P review lowers credit rating: India’s credit rating is now just one step away from junk
status, as Standard and Poor’s ratings services (S&P) have lowered its outlook on the country’s
long-term sovereign rating from stable to negative, because tax cuts and extra spending to win
votes and fight the economic slowdown have pushed the fiscal deficit to a record high. Such a
move can raise the cost for local firms borrowing abroad as well as weaken the rupee, though
some analysts do not expect that to happen.

Number of female post graduates in urban India rises: According to the latest report of the
National Sample Survey Organisation (NSSO), the number of post graduates in every 1,000
males surveyed has increased from 28 in 2001-02 to 35 in 2006-07 in urban India. The number of
female post graduates has increased from 19 to 26 during the same period. The number of male
and female graduates during the same period has increased from 97 and 67 to 111 and 82,
respectively. The incidence of illiteracy in rural areas has declined from 39.5% in 2001-02 to
34.9% in 2006-07. In urban sector, the same has declined from 19.4% to 16.5% during the same
period. What is significant is that in both urban and rural sectors, the illiteracy rate of female has
declined at a higher rate than that of the male. Female illiteracy rate has declined by 4.6
percentage points in rural areas and 3.4 percentage points decline of the male illiteracy rate in
rural and urban sector respectively, during 2001-02 to 2006-07.

India tops world hunger chart: India is failing its rural poor with 230 million people being
undernourished the highest for any country in the world. Malnutrition accounts for nearly 50% of
child deaths in India as every third adult (aged 15-49 years) is reported to be thin (BMI less than
18.5). According to the latest report on the state of food insecurity in rural India, brought out by
the United Nations World Food Programme (WFP), more than 1.5 million children are at risk of
becoming malnourished because of rising global food prices. The report said that while general
inflation declined from a 13-year high exceeding 12% in July 2008 to less than 5% by the end of
January 2009, the inflation for food articles doubled from 5% to over 11% during the same period.
India ranks 94th in the Global Hunger Index of 119 countries, the report said. More than 27% of
world’s undernourished population lives in India.

Government fiddle opens floodgates to FDI: The Union government has relaxed guidelines on
Foreign Direct Investment (FDI) for companies owned and controlled by Indian citizens. This
effectively means foreign investment in FDI-restricted sectors like telecom, defence production
and single-brand retail can cross set limits. The new guidelines also say that an investment made
by a non-resident entity into an Indian company would be counted as foreign investment. Under
the existing norms, if a firm with, say, 40% foreign equity and 60% Indian equity had invested Rs
100 crore in another firm, Rs 40 crore of this amount would be treated as FDI. Under the revised
norms it will now be treated as zero FDI. Relaxation in foreign direct investment (FDI) norms
would not apply to sectors such as multi-brand retail, gambling, atomic energy and lottery where
the government prohibits foreign investment.

Union government to infuse capital in three PSU banks: In order to strengthen the Public
Sector Banks, the Union government has decided to infuse Rs 3,800 crore into three State-run
banks—Central Bank of India will get Rs 1,400 crore, while UCO Bank and Vijaya Bank will get
Rs 1,200 crore each. The capital
infusion would be done in two tranches—the first tranche would be made available during 2008-
09 and the remaining in 2009-10. The capital infusion will help these banks to raise capital
adequacy over 12%, much above the Basel II norms of 9%. The government holding in Central
Bank of India currently stands at 80.2% cent, in UCO bank 76%, while in Vijaya Bank it is 53%.

CEC’s recommendation rejected by the President:President Pratibha Patil has rejected the
controversial recommendation by Chief Election Commissioner (CEC) N. Gopalaswami for the
removal of Election Commissioner Navin Chawla, who is now to head the Commission after Mr
Gopalaswami’s term comes to end in April 2009. The decision came as no surprise since the
government had said CEC was not empowered to seek removal of a fellow Commissioner except
when a Presidential reference was made. Gopalaswami’s action had also attracted sharp
criticism from legal luminaries, although main Opposition party, Bharatiya Janata Party, had
strongly supported the move. The battle in the three-member Election Commission had taken a
new turn on January 31, 2009 when Gopalaswami recommended the removal of Chawla on a
petition by the BJP, which had accused him of partisan functioning, sparking a furore.

General Election dates announced: India, the world’s largest democracy with 714 million
voters, will elect its representatives over five phases between April 16 and May 13, 2009. The EC
will also hold simultaneous polls in Andhra Pradesh, Orissa and Sikkim. Incidentally, this is the
first scheduled Parliamentary election after the Delimitation Commission redrew constituencies.
Delimitation has also pushed up the number of scheduled caste seats in Parliament from 79 to 85
and scheduled tribe seats from 41 to 47. The 2009 polls will also be first photo-electoral rolls-
based Parliamentary election, with 522 of the 543 Lok Sabha constituencies using this type of
rolls.

Standard drill during terror attack being readied:The Home Ministry is drawing up Standard
Operating Procedures (SOPs) to deal with terror attacks as part of its 100-day action plan to be
implemented by May 31, 2009. The guidelines, which will form part of the crisis management plan
of MHA, will cover all aspects of a counter-terror response, including rushing central forces like
NSG to the attack sites, evacuation of civilians and media from the site and its immediate
surroundings, monitoring of communication lines and the command structure to be followed by
various Central and State agencies as they confront terrorists. This is for the first time that SOPs
would be prescribed for tackling terror crimes. As of now, SOPs are in place for Central forces
and State police operating in Naxal-infested States.

Sukh Ram found guilty of corruption: After more than 12 years, the law has completed its first
course for former Telecom Minister Sukh Ram when a City Court in Delhi convicted him for
possessing assets disproportionate to his sources of income. Special CBI judge V.K. Maheshwari
held Sukh Ram guilty under provisions of the Prevention of Corruption Act, 1988, and amassing
the properties amounting to Rs 4.25 crore which were disproportionate to his known source of
income, between 1991 to 1996, when he was Minister of State for Communications in the
Narasimha Rao government. Sukh Ram has been handed down a three-year prison term.
Minorities Bill gets approval:The Lok Sabha has passed the National Commission for
Minorities Education Amendment Bill that grants statutory power to the Commission, which will no
longer need to consult States before according minority status to any educational institute. The
bill further enhances the strength of members of the Commission, which has several disputes
pending for redressal.

Dhaka proposes taskforce for terror: With the atmosphere between India and Bangladesh
clearing up under the Sheikh Hasina government, India has got a pledge from Bangladesh that it
would not allow terror groups to launch attacks against India from its soil. Security issues, along
with trade, were on top of the agenda during External Affairs Minister Pranab Mukherjee’s one-
day visit to Dhaka on February 9, 2009. Mr Mukherjee also discussed the viability of setting up a
regional taskforce to fight terror. The only two deals that were signed by Mr Mukherjee and his
Bangladeshi counterpart were on bilateral trade and investment. Mr Mukherjee said that the deals
would cut down the trade gap which has been an issue for Bangladesh.

IPL results in foreign players raking in the moolah: India, the cricketing nation, seemed to
laugh at the global meltdown at an auction in February 2009, where crores were spent buying the
services of 17 overseas players. Former England skippes Andrew Flintoff and Kevin Pietersen
went for about Rs 7.5 crore apiece ($ 1.55 million), making them jointly the highest
valued players in the Indian Premier League (IPL), more than M.S. Dhoni, bought for Rs six crore
in 2008. Bangladesh’s paceman Mashrafe Mortaza would not know how to react to the Rs 2.93
crore the Kolkata Knight Riders have paid for his commercial value. After all, he was valued at a
relatively low Rs 24.4 lakh. And then there was South African J.P. Duminy who was sold for Rs
4.64 crore. Whatever happened to the recession? Quipped actor Preity Zinta co-owner of Kings
XI Punjab: Recession or no recession, cricket and entertainment always sell. And the IPL is about
both.

CURRENT INTERNATIONAL AFFAIRS

Terror bouncer hits Lanka cricket team in Pakistan: On March 3, 2009, six Pakistani
policemen were killed and six Sri Lankan cricketers were injured when gunmen armed with
automatic weapons attacked the visiting team’s convoy as it headed for Lahore’s Gaddafi
stadium. A military helicopter later evacuated the cricketers as Sri Lanka cancelled its Pakistan
tour. Police said 12 terrorists were involved in the attack. India voiced its strong condemnation of
the dastardly attack on Sri Lankan cricketers in Lahore, warning that such incidents would
continue to occur until Pakistan dismantled the terrorist infrastructure on its territory.

Pakistan acknowledges part of Mumbai attack was planned there: Pakistan has accepted for
the first time that the Mumbai terrorist attacks were launched from its shores and at least partly
plotted on its soil. Interior Ministry Chief Rehman Malik also said Pakistan had arrested most of
the main suspects and had started criminal proceedings against them. India termed the
development as positive and expressed willingness to share what-ever it can after examining the
issues raised by Islamabad. The revelations appear to suggest that Pakistan is serious about
punishing those behind the November attacks, which killed 183 people and stirred fear that the
nuclear-armed neighbours could slide towards war.

Pakistan—Election ban for Sharif brothers: Triggering a fresh round of political instability in
Pakistan, former Prime Minister Nawaz Sharif and his brother, Shahbaz Sharif, Chief Minister of
the Punjab province, have been barred from contesting elections and holding office. Within hours
of the Supreme Court ruling on February 26, 2009, upholding the ban on the Sharif brothers,
Governor’s rule was imposed on the Punjab province. As people hit the streets in Lahore, Nawaz
Sharif accused President Asif Ali Zardari of being behind the move to disqualify him from
contesting elections and asked people to come out on the streets to protest the move. The PML-
N chief said that the bone of contention between his party and President Zardari was the NRO
(National Reconciliation Ordinance) under which criminal cases against Zardari and other
politicians were dropped by the Musharraf administration. The former PM said the reason why the
Chief Justice and other deposed judges were not being reinstated was because these judges
would question the validity of the NRO.

Taliban seal truce in Pakistan’s Swat: Taliban fighters and Pakistani officials agreed on
February 21, 2009, to a permanent ceasefire in the north-western Swat valley. The outlawed
Tahreek-i-Taliban Swat (TTS) formally accepted the Swat accord. It also promised to release all
security personnel in its custody, unconditionally. The Swat peace accord appeared progressing
substantially with life returning rapidly to normalcy in Swat’s main cities. Having been freed from
its engagement in Swat and Bajour, Pakistan army is likely to refocus full attention on tribal
militants along the Afghanistan border.

Bangladesh—BDR mutiny: The 33-hour mutiny by Bangladesh Rifles (BDR) troopers ended
February 26, 2009, as the rebels laid down their arms in the face of an imminent attack by the
army, which had moved tanks into position for an assault on the BDR headquarters in Dhaka.
The mutiny by troopers of the Bangladesh rifles, the country’s border guards, had spread to
several towns despite Prime Minister
Sheikh Hasina’s warning of stern action to quell the unrest. Political observers said the
government’s dilemma was that it was banking on the army to stop the rebellion, while the
troopers’ grievances are largely centred on poor wages and discrimination as compared to the
army.

India and China may hold the key to world’s economic survival: In a survey of the global
outlook for 2009, the Economist Intelligence Unit (EIU) makes some stark and dire observations.
EIU believes that the economic crisis could last at least a couple of years. While the EIU survey
says that China may hold the key to the world’s economic survival, many economists in India
believe that it could be both India and China. These are the only two countries that could account
for growth rates of at least 4.5%.

Time blames Bush, Clinton, Jiabao for financial crisis: Former US Presidents George W.
Bush and Bill Clinton, and Chinese Premier Wen Jiabao are on the list of 25 people to blame for
the financial crisis, compiled by Time magazine. The list also features former Federal Reserve
Chairman Alan Greenspan, past Securities and Exchange Commission Chief Chris Cox, former
Treasury secretary Hank Paulson and American Consumers, among others. Pointing out that
Bush embraced a governing philosophy of de-regulation, the magazine said it trickled down to
federal oversight agencies, which in turn eased off on banks, and mortgage brokers.

US economy drop biggest since 1982: The US economy suffered its deepest contraction since
early 1982 in the fourth quarter, shrinking at a much worse-than-expected at a much worse-than-
expected 6.2% annual rate as exports plunged and consumers slashed spending. A separate
report showed mounting job losses had turned consumers gloomier in February, evidence that
the US recession continues to deepen. The final Reuters/University of Michigan Consumer
Sentiment Index for February fell to 56.3 from January’s 61.2. The commerce department said
consumer spending which accounts for more than two-thirds of domestic economic activity,
dropped at a 4.3 per cent rate in the fourth quarter, the biggest decline since the second quarter
of 180. The spending decline dropped more than 3 percentage points off GDP.

Success of US stimulus tough to measure: Deciding whether the US government’s $ 1.5

trillion
economic bailout is a success or a failure may end up being more an exercise of politics and
perception than exact science. Markers for determining the outcome of the treasury’s $700 billion
in rescue funding for the financial sector and the $87 billion economic stimulus package are not
all clear-cut and can end up relying on eye-of-the-beholder judgements. There are “the what if”
scenarios and the possibility that the government’s best intentions will have unintended
consequences. But experts tend to agree that doing nothing was not an option and, regardless of
political affiliation. Some economists say the bailout of big banks was not helpful because it took
away their incentive to restructure by providing a taxpayer-funded cushion.

Additional American troops to Afghanistan: In an attempt to stabilize a deteriorating situation,

President Barack Obama has approved sending 17,000 more US troops to Afghanistan over the
next few months. It was Obama’s first major military decision. “There is no more solemn duty as
President than the decision to deploy our armed forces into harm’s way”, he said. The United
States already has 38,000 troops in Afghanistan, apart from 30,000 military personnel from allied
nations. But the violence is expected to rise further in the spring and afterwards in the run-up to
Presidential elections set for August 20, 2009. The new troops are expected to be deployed in the
south, which has been worst hit. The situation in Afghanistan, Obama said, had not received the
strategic attention, direction and resources it urgently required.

Pakistan signs FTA with China: China and Pakistan signed a Free Trade Agreement (FTA)
during the four-day visit of Pakistani President Asif Ali Zardari to Hubei and Shanghai, China.
Zardari’s mission was largely focused on economy and investment issues because the Pakistani
President did not get to meet the top echelons of Chinese leadership who were busy hosting the
first official visit of Hilary Clinton, the US Secretary of State. Meanwhile, China has signed an
agreement with Pakistan’s main Islamic party, Jamaat-e-Islami despite the fact that official credo
of China is atheism. A China observer said as part of the agreement with Beijing’s Communist
leaders, Jamaat-e-Islami has promised not to encourage Islamic Uighur separatists in the
Xinjiang region, which is a hotbed of the East Turkmenistan movement.

Bailed out US companies can’t hire people on H1-B: In what could be seen as a major blow to
Indian IT professionals, the US Congress has prohibited banks and firms receiving federal bailout

money from hiring people on H-1B visas in place of Americans laid off by them due to the
economic meltdown. The measure forms part of the American Recovery and Reinvestment Act,
popularly known as the Stimulus Bill. The Act makes a provision of USD 787 billion for reviving
the battered US economy. The measure as finally approved by the Congress, would require the
bailed-out banks to hire only Americans for two years unless they could prove they were not
replacing laid-off Americans with guest workers.

APRIL
CURRENT NATIONAL AFFAIRS

National Pension Scheme: The Pension Fund Regulatory and Development Authority (PFRDA)
has launched the New Pension Scheme (NPS) with effect from May 1, 2009. Now, every citizen
of the country can avail of the pension facility and plan his/her retirement. Any Indian citizen
between the age of 18 and 55 years can join the NPS. At present, only Tier-I of the scheme,
constituting non-withdrawable pension account, is operational while Tier-II (withdrawable
account) of the NPS account will become functional in six months. There is no investment ceiling.
But the minimum investment limit has been fixed at Rs 500 a month or Rs 6,000 per annum.

Creation of jobs cannot be totally left on market forces: Without leaving job creation to
market forces, India needs to grow at 9% consistently for the next eight years to achieve near-full
employment by 2017, a high-powered government panel, the National Commission for
Enterprises in the Unorganised Sector (NCEUS) said in its report. The Commission, headed by
noted economist Arjun Sengupta, said, “Market forces alone may produce a high rate of
expansion of India’s GDP, but for expanding employment a well-designed set of policies and
programmes will have to be adopted and implemented.”

Annual Policy of RBI: Releasing RBI’s annual policy statement for the financial year 2009-10,
RBI Governor D. Subbarao, on April 21, 2009, announced that repo and reverse repo rates would
be cut by 25 basis points each while the cash reserve ratio of banks would remain unchanged.
Following the cuts, the repo rate stands at 4.75 per cent while the reverse repo rate stands at
3.25 per cent. The RBI noted that its efforts under the monetary policy in 2009-10 would be to
ensure a policy regime that enables credit expansion at viable rates while preserving credit
quality so as to support the return of the economy to a high growth path.

India, Kuwait ink three pacts: Giving a new dimension to their relations, India and Kuwait, on
April 7, 2009, signed three pacts for strengthening cooperation in science and technology,
education and culture. They also pledged to contribute to each other’s well being and prosperity.
A joint India-Kuwait Committee for scientific cooperation will be set-up which will meet every year.
The two sides will also exchange scientists and information among institutions under the
agreement. The agreements were inked in the presence of Vice-President Hamid Ansari, who
was on a three-day visit to Kuwait. Under the education and learning executive programme, the
two countries will exchange books, research and study material as well as experts in general and
specialized education. India’s Lalit Kala Academy will hold an exhibition on contemporary art in
Kuwait, while the gulf country’s centre for culture, art and letters will be invited to India. Two
experts from Uttar Pradesh’s Rampur Raza Library, which houses literature on Indo-Islamic
learning and Art, and was founded by Nawab Faizullah Khan in 1774 AD, will also visit Kuwait.

Bilateral pacts in Poland: Seeking to enhance India’s trade and economic ties with Poland,
President Pratibha Patil arrived on a three-day state visit on April 23, 2009, during which three
bilateral agreements were signed. The President also attended a banquet hosted in her honour
by her Polish counterpart Lech Kaczynski and focused on economic issues and strengthening of
bilateral trade ties during her talks. Economic cooperation amid global financial crisis figured high
during the meetings between Patil and Polish leaders.

India, Spain expand trade ties: Giving a major boost to their trade ties, India and Spain, on April
22, 2009, signed three key agreements in the fields of tourism, agriculture and renewable energy,
paving the way for Spanish technology transfer and investments. The agreements were inked
during the visit of President Pratibha Patil to Spain. India is keen to acquire renewable energy
technology, especially in the wind and solar energy sectors, from Spain, which is considered the
world leader in the fields. The world’s biggest photovoltaic solar cell-based plant is located in
Spain. Leading Indian wind power company Sulzon is already present in Spain and is seeking the
Spanish assistance in the field. In the tourism sector, Spain, which is the world’s number two
destination after France for visitors, India is seeking assistance of the European country in
improving its tourism infrastructure. In the field of agriculture, India is keen to get food processing
technology from Spain to utilize the surplus food items produced by it.

CBI withdraws notice against Bofors accused: Some 19 years after it brought down the Rajiv
Gandhi government in the 1989 election, the Bofors kickbacks case once again muscled into
these elections, giving them a new twist. The trigger was CBI’s sudden request to Interpol asking
it to withdraw the Red Corner Notice against Italian businessman Ottavio Quattrocchi, the man
who allegedly received a kickback of over $7 million for swinging a howitzer gun deal in favour of
Swedish arms manufacturer Bofors AG. This means Quattrocchi can travel anywhere like any
ordinary man, barring Indian where he’s still an accused. The BJP and the Left charged the UPA
government with trying to bury the investigation into the scandal. So did Mayawati and Naveen
Patnaik. Even former CBI director Joginder Singh joined in saying that CBI had proof of
Quattrocchi receiving $7.32 million as kickbacks in the Bofors case. Quattrocchi is an Italian
businessman and an alleged friend of the Gandhi family who shot into notoriety in 1987 when the
Bofors kickback scandal erupted.

Suspected Maoists hijack, free train in Jharkhand: On April 23, 2009, suspected communist
rebels freed nearly 300 train passengers unharmed after keeping them hostage for almost five
hours at a railway station in eastern India, a day before the second phase of the general election
that the guerrillas had vowed to disrupt. The hijacking—which took place in a Maoist rebel
stronghold in Jharkhand—was one of a series of attacks that included an explosion at another
railway station, a blast at a government office, and the slaying of a truck driver in Bihar.

CURRENT INTERNATIONAL AFFAIRS

Emergency fund gets nod: Thirteen East and Southeast Asian countries have agreed to set up
a $ 120 billion emergency fund for use in an economic down-turn, the first independent move by
Asia to shield itself from financial crisis. China and Japan have each committed to provide 32% of
the regional fund, known as the Chiang Mai Initiative. South Korea has committed to 16%, with
the rest coming from the 10-member ASEAN. The fund will offer emergency balance of payments
support to any country hit with the type of capital flight that marked the Asian financial crisis of
1997-98. The initiatives were announced on the Indonesian island of Bali, on the side lines of the
Asian Development Bank’s (ADB) annual meeting on May 3, 2009.

India for collective measures to revive world economy: Favouring collective measures to
revive the world economy, India has said the massive decline in private capital flows needs to be
urgently addressed to check the downturn. Speaking at the NAM ministerial meeting held in
Havana, Minister of State for External Affairs E. Ahamed also emphasized the need for avoiding
protectionism in trade and investment and said the global crisis needs a global solution. Blaming
the developed countries for the meltdown, he said the NAM countries are also victims of the crisis
which is not of our making.

G-8 farm ministers look to curb food protectionism: Several farm ministers from the world’s
most developed nations have called for an end to protectionism in agriculture, saying the best
way to food security lay in better incentives for farmers. The debate at the first meeting of Farm
Ministers from the so-called G-8 (group of eight) and Brazil, China, India, Mexico, Argentina and
Egypt, has shifted towards options for improving food security and ways to raise output. But food
protectionism, as exercised by both rich and poor countries in the form of export bans and import
duties, has also been a subject of debate.

Nepal—Prime Minister quits: On May 3, 2009, Nepal’s Maoist Prime Minister Pushpa Kamal
Dahal Prachanda sacked army chief Rukmangad Katuwal. The next day, however, Prime Minister
Prachanda, announced his resignation after two allies of his coalition government pulled out,
following a long quarrel over the sacking of the army chief, leaving the government under the
cloud of a no-trust vote in Parliament and likely defeat. Chief of Nepal’s army since 2006, the
General has not allowed the inclusion on Maoist guerrillas with the regular Army.

ANC sweeps poll in South Africa: The African National Congress (ANC) has swept South
Africa’s general elections, held in April 2009, securing a decisive majority, paving the way for
party leader Jacob Zuma to become President, who vowed to build a better life for all, including
blacks, whites, coloured and Indians. The ANC, which has swept the country’s first three post-
apartheid polls since 1994, however failed to retain its two-thirds majority in the 400-member
Parliament. The ANC won 65.9 per cent of the 18 million votes cast. It was allotted 264 seats,
three short of two-thirds, and 33 fewer than it had held in the last Parliament. The opposition
Democratic Alliance got 67 seats while the recently formed breakaway faction of ANC, Congress
of the People (COPE) of Mbeki’s supporters could muster only 30 seats. The Inkatha Freedom
Party managed to get 18 seats.
Zardari okays Sharia for Swat region of Pakistan: Pakistani President Asif Ali Zardari has
approved the imposition of Sharia laws in parts of the country’s restive northwest, including Swat,
in return for a controversial deal with the Taliban for laying down their arms. Many Western
nations including the US termed the deal a retrograde step as it was seen as bowing before the
Taliban and getting in return too little for giving up too much. Since the new peace deal was
made, the militants are beginning to push into neighbouring areas. Immediately after the deal
they overpowered a village militia in the adjacent Buner district. The attack was a violation of the
peace accord. The military offensive by Pakistan to weed out Taliban has resulted in more than
one million people being displaced in northwestern Pakistan.

Protests in Bangkok: April 2009 saw a major escalation of anti-government protests that have
affected this nation. At least 74 persons were reported injured in the clashes, most of them in a
pre-dawn confrontation in which the demonstrators hurled at least one gasoline bomb and fired at
the troops. The demonstrators were demanding the resignation of Prime Minister Abhisit
Vejjajiva, saying his four-month-old government came to power illegally. On April 14, 2009, Thai
Anti-Government protesters finally ended a three-week siege of the Prime Minister’s office,
easing fears for the time being that prolonged turmoil would further damage the economy.
Thailand’s intractable political crisis broadly pits royalists, the military and the urban middle-class
against the rural poor loyal to Thaksin.

Fiji President repeals Constitution, becomes head of State: Fiji President Ratu Josefa Iloilo
repealed the Country’s constitution on April 10, 2009, appointed himself head of State and set a
2014 election deadline. He said he had also sacked all the judges and established a “new legal
order” following Court of Appeal ruling that the country’s military regime was illegally appointed
after the 2006 coup. The court ruling, which declared the interim government of coup leader
Voreqe Bainimarama to be invalid, ruled that Iloilo appoint a distinguished person to act as
caretaker Prime Minister. That person should neither be Bainimarama nor the deposed Prime
Minister Lalsenia Qarase, the court said.

Obama lifts travel curbs on Cuba: US President Barack Obama has made a landmark gesture
to communist Cuba, lifting all curbs on travel and money transfer by Cuban-Americans to the
island for the first time in three decades. The White House said the move was intended to
encourage expanding democratic and political rights in Cuba and called on Havana to respond in
kind to help ease decades of fierce anti-pathy between the bitter foes. But the move left a 47-
year-old US economic embargo on Cuba intact, with the White House saying it was up to Raul
Castro’s government as to whether Obama’s steps would result in a thawing of relations.
President Obama’s actions were met with a tepid response in Havana’s halls of government, with
Cuba’s former Leader Fidel Castro declaring his country was not looking for “charity”, but instead
an end to the embargo.

Lanka denies visa to Swedish Finance Minister: On April 28, 2009, Sweden recalled its head
of mission in Colombo after the Sri Lankan government denied entry visa to Foreign Minister Carl
Bildt. Bildt applied for an entry visa at the Lankan embassy in Stockholm to be part of a European
Union diplomatic mission to Sri Lanka. The other members of the mission were UK and France. It
was learnt that Lankan authorities told Bildt that they could not accommodate him at present and
he could visit in May. This was the second time that Sri Lanka had got into a diplomatic row with a
member of the Sri Lanka Monitoring Mission (SLMM), which was set up during ceasefire between
the rebels and the government in 2002. Earlier, the Mahinda Rajapaksa regime had said that
Norway, which had brokered peace between the two sides, could no longer play the role of the
peace talk’s facilitator for the government. The European Union lashed out at Sri Lanka’s
decision, describing the move as a grave mistake and warning Colombo of repercussions.

Declaration against Racism: A United Nations meeting on Racism has adopted a final
declaration against racism, xenophobia and intolerance. Earlier, the US had refused to attend the
UN conference on racism on saying that its concerns are not being addressed in the document to
be adopted at the international meeting at Geneva. At the same time, the US said it remains fully
committed to upholding the human rights of all individuals and to fighting racial discrimination of
every form in every context. The US also has serious concerns with relatively new additions to
the text regarding “incitement”, that run counter to the US commitment to unfettered free speech.

MAY
CURRENT NATIONAL AFFAIRS

Congress-led UPA wins majority in 15th Lok Sabha: Economist-turned-politician Manmohan

Singh was sworn in as Prime Minister on May 22, 2009, for a second term, at the head of a 20-
member Congress-led UPA ministry. The 76-year-old mild-mannered Sikh, who won the hearts
and minds of the people along with Sonia Gandhi, led the UPA to a handsome win in the Lok
Sabha elections.

A close look at the new cabinet clearly suggests that Manmohan virtually got a free hand from the
Congress leadership to choose his team. Stability being the ‘mantra’ of the new government in
these times of deepening economic crisis, the Prime Minister carefully selected each and every
new minister, giving due weightage to performance, experience and loyalty to the party.

Octogenarian leader Arjun Singh, as expected, did not find a place in the new team. A surprise
omission was H.R. Bhardwaj, who was the Law, Justice and company Affairs Minister in the last
government. Pranab Mukherjee, the main trouble-shooter of the UPA government during its first
term, has been given the Finance portfolio. Antony retained Defence and Chidambaram remains
the Home Minister.

Prime Minister Manmohan Singh will see almost 50 years dividing the oldest and youngest
member of his 78-member Union Council of Ministers. 77-year-old former Karnataka Chief
Minister S.M. Krishna, who got the External Affairs portfolio, is the oldest Minister and is
becoming a cabinet minister for the first time. Bespectacled Agatha Sanga (28), a first-time MP
and daugther of NCP leader and former Lok Sabha Speaker P.A. Sangma, is the youngest
Minister in the new government. She is also the youngest Parliamentarian.

All-India, the Congress vote share went up 2% to 28.6% while BJP’s share came down 3.5% to
18.8%

Final Tally
UPA: 262 (INC: 206, NCP: 9, TMC: 19, DMK: 18, NC: 3, JMM: 2, MLKSC: 2, BPF: 1, KC (Mani):
1, AIMM: 1)
NDA: 159 (BJP: 116, JD(U): 20, Shiv Sena: 11, RLD: 5, SAD: 4, TRS: 2, AGP: 1)
Third Front: 80 (BSP: 21, CPI(M): 16, BJD: 14, AIADMK: 9, TDP: 6, CPI: 4, JD (S): 3, Forward
Bloc: 2, RSP: 2, MDMK: 1, HJC: 1, JVM: 1)
Fourth Front: 27 (SP: 23, RJD: 4)
Others: 15

Women Members Cross 10% Mark for first time in India’s History: With 79 MPs under 40
years of age and 36 members who are at least 70 years old, the 15th Lok Sabha is a fine blend of
youth and experience. Although the new Lok Sabha has a higher number of under-40 members
compared with the last, the average age of the House is higher—at 53.03 years, this is the third
oldest House so far.
The 13th LS was the oldest House with the average age of members being 55.5 years. By
comparison, in the last Lok Sabha it was 52.7 years. With members averaging just 46.5 years in
age, the first Lok Sabha was among the youngest. The average age has since been increasing
generally, though this trend is far from uniform. For instance, the 12th Lok Sabha was the
youngest House so far, with an average of just 46.42 years.

Ram Sundar Das (88), the giant-killing JD(U) MP from Hajipur, who defeated Ram Vilas Paswan,
is the oldest member of the House, while 26-year-old Muhammed Hamdulla Sayeed, the
Congress MP from Lakshadweep, is the youngest.

Although the women’s reservation Bill proposing 33% reservation for women in Parliament was
not passed despite repeated attempts to table it, the new Lok Sabha has the highest number of
women MPs ever elected in to the Lok Sabha. At 58, the 15th Lok Sabha has 13 more women
MPs than the last House and nine more than the previous best of 49 in the 13 Lok Sabha. The
representation of women members has crossed the 10% mark for the first time in Indian history.
However, this is still low in comparison with Parliaments of the industrialized countries. For
instance, UK, USA, Italy, Ireland and France have 19.3%, 16.3%, 16.1%, 14.2% and 13.9%
women parliamentarians, respectively. The Sweden parliament, with 47% women MPs, has the
best gender ratio in the world.

Andhra Pradesh returns Congress government: The Andhra Pradesh electorate has given a
decisive verdict in favour of the Congress government and endorsed the development schemes
of Chief Minister Y.S. Rajasekhara Reddy. This is the first time since 1978 that a Congress
government in the State has been voted back to power.

Out of the 294 Assembly seats, Congress bagged 157 seats, down from 185 in 2004. But the
victory is significant as the anti-incumbency factor did not affect the party. However, several
ministers of the out-going government had to face defeat, including State party chief D. Srinivas
and Assembly Speaker Suresh Reddy.

The near-total rout of the Telangana Rashtriya Samiti (TRS), sent out a clear message that the
voters are in favour of a united Andhra. The opposition TDP bagged 93 seats. The Left parties
too received a similar drubbing with the electorate giving the CPI four and the CPM just one
Assembly seat.

The Prajarajyam Party turned out to be a farce with even its President Chiranjeevi—who fancied
himself as the Chief Minister—losing from the Palakole Assembly seat in his home district of
West Godavari. He, however, won the Tirupati Assembly seat. The Prajarajyam got only 18
Assembly seats and drew a blank in the Lok Sabha. Analysts said that even the Kapus, whose
interest Prajarajyam was supposed to represent, did not vote for the party.

BJD emerges stronger in Orissa: In the Assembly poll results declared on May 17, 2009, the
Biju Janata Dal (BJD) won a two-third majority on its own in the 147-member House, with
Congress finishing a poor second with 25 seats. BJP could pick up only six, while NCP’s tally was
four. CPI emerged triumphant at one place, while Independents won at five places. The 11-year-
old BJD thus proved that its decision to cut off ties with BJP just ahead of the elections was
correct. Congress suffered a big setback, finishing with fewer seats than in 2004. The Biju Janata
Dal became the first regional party to come to power on its own in Orissa when a 21-member
ministry headed by Naveen Patnaik was sworn in. Sixty two-year-old Patnaik is the first leader to
become Chief Minister for the third consecutive term in Orissa.

SDF clean-sweep in Sikkim: Chief Minister Pawan Kumar Chamling’s Sikkim Democratic Front
(SDF) retained power in the State for a record fourth time by winning 30 out of 32 assembly
seats. Founded by Chamling in 1993, SDF also retained the State’s lone Lok Sabha seat. SDF
humbled BJP, NCP, CPI and a host of local parties like Sikkim Gorkha Prajatantrik Party, Jan
Ekta Party and Sikkim Himali Rajya Parishad. Celebrating his party’s victory, Chamling, who won
from Poklok-Kamrang and Namchi-Singhithang, said, ‘‘this win represents confidence (of people)
in my plans and programmes. There was no incumbency factor here at all.’’ To overcome the
incumbency factor, Chamling dropped 21 ministers and sitting Legislators in favour of new faces.

MEGHALAYA—Cong government takes charge: A Congress-led coalition government of the

Meghalaya United Alliance (MUA) was sworn in Meghalaya on May 14, 2009, in the wake of the
Centre’s decision to revoke the President’s Rule in the hill State. Congress and its coalition
partners staked claim to form the government by submitted a list of 37 MLAs supporting them.
Out of these 37 MLAs, 26 are from the Congress, nine from the UDP and two Independents. The
State has a 60-member Assembly.

Congress legislature party leader D.D. Lapang was sworn-in as the Chief Minister.

The State was brought under the President’s Rule on March 19, 2009, after the NCP-led
Meghalaya Progressive Alliance (MPA) government won the trust vote under controversial
circumstances. The MPA had the UDP as a major partner. However, the UDP decided to part
ways with the MPA after the NCP leader P.A. Sangma tried to warm up to the Congress to form
the next government.

Violence hits Punjab as Dera leader is shot in Vienna: Punjab plunged into angry protests,
violence and vandalism May 25, 2008 following reports that Sant Ramanand (57), shot in Vienna
on May 24, had succumbed to his injuries. Angry followers of Guru Ravidas, mostly Dalits, hit the
streets, torched trains, set vehicles on fire and set up road blockades, throwing normal life
completely out of gear. They defied the curfew imposed on entire districts of Jalandhar,
Hoshiarpur, in Patiala and in Ludhiana, abducted a policeman and tried to lynch another.
Sant Ramanand, tipped to take over from Sant Niranjan Dass (68) the task of heading ‘Dera Sach
Khand’, died in a hospital in the Austrian capital on May 25.
Protests also spread to neighbouring Haryana, where sect followers felled trees and blocked
National Highway No. 1. Security forces had to open fire to bring the situation under control.
Deployment of the Army and the police finally brought the situation somewhat under control. The
Shiromani Akali Dal called for a State-wide bandh to condemn the act of violence in Austria and
parties called for restrain.

Chief Minister Parkash Singh Badal and other leaders, while condemning the Vienna incident,
hoped that stringent punishment would be given to the perpetrators of the crime in Austria who
not only disturbed a religious congregation but also used firearms and lethal weapons.

JK, NE killings halve, but Naxal violence doubles: In the period between 2005 and 2008,
Naxal violence has cost more civilian lives than the conflicts in Jammu and Kashmir and the
north-eastern States, a report released by the Asian Centre for Human Rights has said. The
number of civilians killed in Naxal conflicts is 1,965 in the four year period. In comparison, the
number of civilians killed in the strife-torn north-east is 1,666 and in Jammu and Kashmir is 1,195.

Similarly, the number of security personnel killed in Jammu and Kashmir or north-east decreased
by more than half between 2005 and 2008. The number of security forces killed in the Naxal
conflict doubled during the same period.

Among the armed opposition groups, the Naxals were responsible for the gross violations of
international humanitarian law, the report said. "The methods of the Naxals include violence of
extraordinary brutality, including the gouging out of eyes, bludgeoning to death and slitting of
throats of those suspected of colluding with the State."
Calling for a Parliamentary debate on security responses to the Naxal crisis, the ACHR concluded
that the current security-driven responses are not working; indeed they are counter-productive.
In contrast, Home Minister P Chidambaram has of late been mentioning that the root cause
approach will not work. He has said that the idea of police action and development work
happening side by side is not feasible. Only after the security forces have cleared an area can
development work happen there, believes the home minister.

India just ahead of Sub-Saharan Africa in poverty: India now is ahead of only Sub-Saharan
Africa among developing countries in terms of the percentage of population below the poverty
line, though it fared better than China on this count in 1990, according to the World Bank report
‘Global Economic Prospects for 2009’.
According to the report, India’s population will be living in extreme poverty, on less than $1.25 a
day, in 2015. The projections are based on purchasing power parity exchange rates derived from
the 2005 price surveys, meaning that the calculations have been made assuming a dollar’s
purchasing power to be the same in the years under consideration as in 2005. According to the
World Bank’s poverty forecast, China had 60.2% of its population living on less than $1.25 a day
in 1990, compared to India’s 51.3%. However, 15 years later in 2005, China had 15.9% of its
population living in extreme poverty as compared to India’s 41.6% living on less than $1.25 a day,
the international poverty line.

The international poverty line is meant to capture a notion of extreme poverty. As such, it is
calculated as the average poverty line of the poorest countries.

National Pension Scheme: The Pension Fund Regulatory and Development Authority (PFRDA)
has launched the New Pension Scheme (NPS) with effect from May 1, 2009. Now, every citizen
of the country can avail of the pension facility and plan his/her retirement. Any Indian citizen
between the age of 18 and 55 years can join the NPS. At present, only Tier-I of the scheme,
constituting non-withdrawable pension account, is operational while Tier-II (withdrawable
account) of the NPS account will become functional in six months. There is no investment ceiling.
But the minimum investment limit has been fixed at Rs 500 a month or Rs 6,000 per annum.

Creation of jobs cannot be totally left on market forces: Without leaving job creation to
market forces, India needs to grow at 9% consistently for the next eight years to achieve near-full
employment by 2017, a high-powered government panel, the National Commission for
Enterprises in the Unorganised Sector (NCEUS) said in its report. The Commission, headed by
noted economist Arjun Sengupta, said, “Market forces alone may produce a high rate of
expansion of India’s GDP, but for expanding employment a well-designed set of policies and
programmes will have to be adopted and implemented.”

Annual Policy of RBI: Releasing RBI’s annual policy statement for the financial year 2009-10,
RBI Governor D. Subbarao, on April 21, 2009, announced that repo and reverse repo rates would
be cut by 25 basis points each while the cash reserve ratio of banks would remain unchanged.
Following the cuts, the repo rate stands at 4.75 per cent while the reverse repo rate stands at
3.25 per cent. The RBI noted that its efforts under the monetary policy in 2009-10 would be to
ensure a policy regime that enables credit expansion at viable rates while preserving credit
quality so as to support the return of the economy to a high growth path.

India, Kuwait ink three pacts: Giving a new dimension to their relations, India and Kuwait, on
April 7, 2009, signed three pacts for strengthening cooperation in science and technology,
education and culture. They also pledged to contribute to each other’s well being and prosperity.
A joint India-Kuwait Committee for scientific cooperation will be set-up which will meet every year.
The two sides will also exchange scientists and information among institutions under the
agreement. The agreements were inked in the presence of Vice-President Hamid Ansari, who
was on a three-day visit to Kuwait. Under the education and learning executive programme, the
two countries will exchange books, research and study material as well as experts in general and
specialized education. India’s Lalit Kala Academy will hold an exhibition on contemporary art in
Kuwait, while the gulf country’s centre for culture, art and letters will be invited to India. Two
experts from Uttar Pradesh’s Rampur Raza Library, which houses literature on Indo-Islamic
learning and Art, and was founded by Nawab Faizullah Khan in 1774 AD, will also visit Kuwait.

Bilateral pacts in Poland: Seeking to enhance India’s trade and economic ties with Poland,
President Pratibha Patil arrived on a three-day state visit on April 23, 2009, during which three
bilateral agreements were signed. The President also attended a banquet hosted in her honour
by her Polish counterpart Lech Kaczynski and focused on economic issues and strengthening of
bilateral trade ties during her talks. Economic cooperation amid global financial crisis figured high
during the meetings between Patil and Polish leaders.

India, Spain expand trade ties: Giving a major boost to their trade ties, India and Spain, on April
22, 2009, signed three key agreements in the fields of tourism, agriculture and renewable energy,
paving the way for Spanish technology transfer and investments. The agreements were inked
during the visit of President Pratibha Patil to Spain. India is keen to acquire renewable energy
technology, especially in the wind and solar energy sectors, from Spain, which is considered the
world leader in the fields. The world’s biggest photovoltaic solar cell-based plant is located in
Spain. Leading Indian wind power company Sulzon is already present in Spain and is seeking the
Spanish assistance in the field. In the tourism sector, Spain, which is the world’s number two
destination after France for visitors, India is seeking assistance of the European country in
improving its tourism infrastructure. In the field of agriculture, India is keen to get food processing
technology from Spain to utilize the surplus food items produced by it.

CBI withdraws notice against Bofors accused: Some 19 years after it brought down the Rajiv
Gandhi government in the 1989 election, the Bofors kickbacks case once again muscled into
these elections, giving them a new twist. The trigger was CBI’s sudden request to Interpol asking
it to withdraw the Red Corner Notice against Italian businessman Ottavio Quattrocchi, the man
who allegedly received a kickback of over $7 million for swinging a howitzer gun deal in favour of
Swedish arms manufacturer Bofors AG. This means Quattrocchi can travel anywhere like any
ordinary man, barring Indian where he’s still an accused. The BJP and the Left charged the UPA
government with trying to bury the investigation into the scandal. So did Mayawati and Naveen
Patnaik. Even former CBI director Joginder Singh joined in saying that CBI had proof of
Quattrocchi receiving $7.32 million as kickbacks in the Bofors case. Quattrocchi is an Italian
businessman and an alleged friend of the Gandhi family who shot into notoriety in 1987 when the
Bofors kickback scandal erupted.

CURRENT INTERNATIONAL AFFAIRS

Obama wins fresh Pak, Afghan pledge against terrorism: After some tough talking, US
President Barack Obama, on May 8, 2009, secured a fresh pledge from leaders of Pakistan and
Afghanistan to "dismantle, disrupt and defeat" the al-Qaeda and Taliban while promising to make
"every effort" to avoid civilian casualties in anti-insurgency operations. Obama met Pakistan
President Asif Ali Zardari and his Afghan counterpart Hamid Karzai at the White House to forge a
common strategy to deal with a resurgent Taliban and threat from al-Qaeda, whose leaders have
found a safe haven in the two countries.

After the trilateral summit, President Obama said he was "pleased" that Zardari and Karzai fully
appreciated the seriousness of the threat and that they had reaffirmed their commitment to
confronting it.

3-fold hike in US aid to Pak: A three-fold increase in US non-military aid to Pakistan, to a

whopping $1.5 billion annually, has been approved by a key Congressional Committee on the
condition that it would not allow terrorist activity from its soil against “neighbouring countries”
without mentioning India by name.

The original Bill had insisted that Pakistan would not let its territory to be used for launching
terrorist attacks against and not support any group that indulges in terrorist activities against India
but dropped a direct reference to India keeping in mind Pakistan’s sensitivities. The Pakistan
Enduring Assistance and Cooperation Enhancement (PEACE) Act 2009 was approved by the
House Foreign Affairs Committee by the voice vote, following about an hour of debate, replacing
the word India with “neighbouring countries”.

India is, however, disappointed over the decision of a US Congressional committee approving a
law tripling non-military aid to Pakistan.Official sources observed that Washington was extending
aid to Pakistan, obviously to keep it in a good humour though it was fully aware of the ground
situation in this region.They were also surprised that the US Foreign Affairs Committee, the
Pakistan Enduring Assistance and Cooperation Enhancement (PEACE) Act, replaced word ‘India’
with ‘neighbouring countries’ with regard to Pakistan not allowing its territory to be used to launch
terror attacks.

Pak, Iran, Afghanistan pledge to defeat terror: Pakistan, Iran and Afghanistan at a trilateral
summit in Tehran on May 25, 2009, reaffirmed their commitment to eliminate terrorism from the
region and agreed to hold regular consultations on important matters between the three
countries. Pakistani President Asif Ali Zardari, Iranian President Mahmoud Ahmedinejad and
Afghan President Hamid Karzai attended the one-day summit.

In a joint statement after the summit, the leaders pledged to address the root cause of terrorism
and extremism, “which are in stark contrast with the spirit of Islam and the rich cultural traditions
of the region”. The leaders also agreed to establish a mechanism for holding regular
consultations on important issues. Iran and Afghanistan also accepted Zardari’s invitation to hold
the next trilateral summit in Islamabad.

IPI Pipeline: Pak, Iran ink deal: On May 25, 2009, President Asif Ali Zardari of Pakistan and his
Iranian counterpart Mahmood Ahmadinejad signed an inter-governmental framework declaration
to support within framework of their respective laws and regulations, the gas deal signed by the
oil ministries of the respective countries. India had reservations over the gas pipeline but there is
a provision that India can join it later.

The deal, known as "peace pipeline", was signed on the sidelines of the tripartite summit of
Pakistan, Afghanistan and Iran on elimination of terrorism, drug and human trafficking.

The 2,100-km long pipeline is to transfer Iranian gas to Pakistan. The project is to transfer some
750 million cubic feet of gas per day.

Construction of the pipeline is to be completed in five years.

India is still undecided on joining the ambitious IPI gas pipeline project despite Tehran and
Islamabad inking a bilateral deal. "We have not pulled out of the project. We have certain
concerns which need to be addressed before we can join the project," a senior Petroleum Ministry
official said.

"Stress Test" of US Banks: The US Treasury Department ‘stress test’ has found that nine of the
biggest banks of the country have enough capital to withstand a deeper recession. Ten US banks
need new capital to the tune of $74.6 bn to withstand possible future losses. The effected banks
will need to develop a plan and have it approved by the regulators. If they cannot raise the money
on their own, the US government will dip further into its bailout fund. Top five that need capital
are: Bank of America, Wells Fargo & Co. GMAC, Citigroup Inc. Morgan Stanley.

World economy to shrink 2.6 pc: The United Nations has forecast the world economy to shrink
2.6 per cent in 2009, downgrading the already-pessimistic estimate made five months ago. In
January, the UN had forecast that the world economy would shrink 0.5 per cent in 2009.The
report predicted that with a coordinated, development-oriented policy scenario, the world
economy would recover to an annual growth of 4-5 per cent in 2010-2015, led by a robust growth
of 7 per cent a year in developing nations.

Although the crisis originated in developed countries, "it is now evident that developing countries
are being hit disproportionately hard through capital reversals, rising borrowing costs, collapsing
world trade and commodity prices, and subsiding remittance flows", it stated.

During the first quarter of 2009, world trade dwindled at a "dramatic" annual rate of more than 40
per cent, with the deepest impact felt by the exporting countries of Asia.

Defiant N-Korea conducts N-test: On May 25, 2009, North Korea conducted a second nuclear
test that was far more powerful than its first one, triggering an emergency U.N. Security Council
meeting on the hermit State’s defiant act.
US President Barack Obama said Pyongyang’s attempts at developing nuclear weapons was a
threat to international peace and security, while the North’s neighbour and long-time benefactor,
China, said it was “resolutely opposed” to the test.

Russia, which also called the test a threat to regional security, said the blast was about equal in
power to the US atom bomb dropped on the Japanese city of Nagasaki in World War II.
Ratcheting up tensions further, North Korea test-fired three short-range missiles just hours later.

Officials in Washington and Beijing said North Korea had warned their governments of the test
about an hour before detonation but nearby Japan said it was not given advance notice.
Germany, Britain and France were among the nations condemning the test while U.N. Secretary-
General Ban Ki-moon said he was “deeply worried.”

The latest test will confound the international community, which has for years tried a mixture of
huge aid pledges and tough economic sanctions to persuade the impoverished North to give up
efforts to build a nuclear arsenal. It is also bound to raise concerns about proliferation, a major
worry of the United States which has in the past accused Pyongyang of trying to sell its nuclear
know-how to states such as Syria.

Analysts said the test also will serve to raise North Korea’s leverage in any negotiations with the
United States. It comes as speculation has mounted that leader Kim Jong-il, his health uncertain
after reports of a stroke in 2008, wants to strengthen an already iron grip on power so he can
better secure the succession for one of his three sons.

North Korea already is so isolated there is little left with which to punish an autocratic government
that has long been willing to take dealings with the outside world to the brink. At home, its leaders
repeatedly stress the threat from a hostile United States to justify heavy spending on the military
that keeps them in power but which has meant deepening poverty, at times famine, for most of
the rest of its 23 million people.

On May 26, North Korea, defiant in the face of international condemnation of its latest nuclear
test, fired two more short-range missiles off its east coast and accused the United States of
plotting against its government. In a move certain to compound tensions in the region, South
Korea said it would join a US-led initiative to intercept ships suspected of carrying weapons of
mass destruction, something Pyongyang has warned it would consider a declaration of war.
Pak has 60 N-bombs: Pakistan with about 60 nuclear warheads, primarily targeted towards
India, is continuing production of fissile material for weapons and adding to its weapons
production facilities and delivery vehicles, a US Congressional report has said.

The latest report by Congressional Research Service (CRS)—a research wing of the US
Congress which prepares reports for Congressmen—has confirmed the recent statements and
media reports that Pakistan was expanding its nuclear arsenal. “Pakistan’s nuclear arsenal
consists of approximately 60 nuclear warheads. It continues fissile material production for
weapons, and is adding to its weapons production facilities and delivery vehicles,” said the report.

Pakistan stored its warheads unassembled with the fissile core separate from non-nuclear
explosives, and these were stored separately from their delivery vehicles, it said. Pakistan does
not have a stated nuclear policy, but its “minimum credible deterrent” is thought to be primarily a
deterrent to Indian military action.
The report further states that Islamabad gained technology from many sources, including uranium
enrichment technology from Europe, blueprints for a small nuclear weapon and missile
technology from China. Pakistan’s nuclear warheads used an implosion design with a solid core
of highly enriched uranium, about 15-20 kg per warhead and “Islamabad continues to produce
about 100 kg of highly enriched uranium for weapons every year”, the report said.

Nepal—Prime Minister quits: On May 3, 2009, Nepal’s Maoist Prime Minister Pushpa Kamal
Dahal Prachanda sacked army chief Rukmangad Katuwal. The next day, however, Prime Minister
Prachanda, announced his resignation after two allies of his coalition government pulled out,
following a long quarrel over the sacking of the army chief, leaving the government under the
cloud of a no-trust vote in Parliament and likely defeat. Chief of Nepal’s army since 2006, the
General has not allowed the inclusion on Maoist guerrillas with the regular Army.

Nepal garners majority to form government: Ending the two-week long political uncertainty
that surfaced after the Prime Minister and Unified CPN (Maoist) Chairman Pushpa Kamal Dahal
announced his resignation, Nepali Congress (NC) and CPN-UML-led democratic alliance, on May
17, 2009, succeeded in garnering a clear majority in the Parliament to elect UML leader Madhav
Kumar Nepal as new Prime Minister.

After President Dr Ram Baran Yadav called on political parties to form a majority government the
NC-UML-led alliance submitted the signatures of 324 lawmakers from 19 political parties to the
Speaker Subas Nembang, requesting the latter to start the procedure of electing Nepal as new
Prime Minister.

The Maoists Chairman Dahal had, on March 4, 2009, resigned from the government, protesting
against the President Yadav's move to retain the sacked Chief of Army Staff Rookmangud
Katawal, dubbing it as a “constitutional coup” against the "civilian supremacy".

On May 22, 2009, caretaker Prime Minister Pushpa Kamal Dahal Prachanda, making an
impassioned valedictory address, blamed neighbour India, Nepal’s president Ram Baran Yadav,
his allies and the army chief, Gen Rookmangud Katawal and warned of a catastrophe in the days
to come. In his nearly hour-long speech that rambled and repeated much of what he had said
when he announced his resignation on May 4, Prachanda came down heavily on India, accusing
it of trying to behave like Nepal’s big brother.

New Delhi, he said, still based its relations with Kathmandu on the humiliating Sugauli Treaty
signed between Nepal and the British East India Company in 1816, which forced Nepal to
concede about a third of its land. New Delhi had failed to upgrade its ties even after the sea
change that overtook Nepal following the Maoist insurgency and the fall of monarchy.
Being the elected Prime Minister of a federal, democratic republic, Prachanda said he had tried to
bring a change in Nepal’s ties with its neighbours and had visited China first to attend the
concluding ceremony of the Olympic Games.
However, he indicated that India had failed to appreciate the change and had “remote-controlled”
his allies into forsaking him. Flaying the political parties, especially his former allies, as “double-
crossers”, Prachanda said they had “turned 180 degrees” on their decision to fire the army chief
and had made a mockery of civil supremacy. Prachanda also attacked the President for
reinstating the dismissed army chief, calling it unconstitutional.

He said there was a propaganda war against his nine-month-old government with fear-mongers
raising the spectre of a Maoist revolt to capture power so that Presidential rule could be imposed
and the army deployed in the name of combating the Maoist attack. Prachanda also cast doubts
about the new government that would succeed his own, saying it was the by-product of the “dirty
game” of buying and selling legislators.

Civil war comes to a bitter end in Sri Lanka: The statement by the Liberation Tigers of Tamil
Eelam (LTTE) on May 17, 2009, that the group has decided to “silence it’s guns” resulted to an
end of the bitter civil war that had ravaged Sri Lanka’s north and east for the past 26 years and
left thousands dead. In the statement, posted on the pro-LTTE website, said the battle had
reached its end. “We have decided to silence our guns,” said the statement from S.
Pathmanathan, head of the group’s International operations. The LTTE said the decision was
taken to avert any harm to Tamil civilians. However, by the time the statement came, troops had
rescued all civilians trapped in the area that was under the control of the Tigers.

On May 25, 2009, President Mahinda Rajapaksa stressed that the end of the war against the
LTTE was not a defeat of the Tamil community. “I am calling on all Tamils who left the country to
return to the country,” Rajapaska said, rejecting that there were ethnic tensions between the
island nation’s majority Sinhalese and minority Tamils. “There are no minority communities in the
country.”

Moments later, private television stations Derana and Swarnavahini showed soldiers surrounding
what they said was Prabhakaran’s body, with his trademark moustache and distinctive Tiger
stripe camouflage fatigues. Found on his body was a tag bearing number 001, indicating his
membership. Later in the day, a former top LTTE fighter who defected to the government,
Vinyagamoorthy Muralitharan, flew to northern Sri Lanka and positively identified the body. The
display of Prabhakaran’s body ignited another round of frenzied celebrations in Colombo and
elsewhere in the country as thousands, mainly members of the majority Sinhalese community,
poured out of their homes to dance on the streets, distribute sweets and wave national flags.

Sri Lanka's $40 billion economy is struggling with depleted foreign exchange reserves, shrinking
export revenues for tea and garments, rising import costs, a declining rupee currency and a
balance of payments crisis. President Rajapaksa's government is now counting on victory in the
war to help boost the economy and renew economic growth that for years had been among the
highest in south Asia.

India to counter China’s growing influence in Lanka: India will tell Sri Lanka that it has a
definite interest in helping the island nation take on reconstruction and will be actively engaged in
helping Colombo. This was the essence of the message that foreign secretary Shiv Shankar
Menon and national security adviser M.K. Narayanan gave to President Mahinda Rajapaksa
when they meet him on May 27, during a day-long visit, the first after the LTTE was militarily
crushed.

With a greater engagement in Sri Lanka, not hampered by the complications of an LTTE
presence, India ultimately hopes to counter the growing presence of China in its southern
neighbourhood. Over the past few years, China has stepped in as one of Colombo’s largest
defence suppliers after India found itself constrained from giving offensive weaponry and other
defence assistance to Sri Lanka for the current conflict. Naturally, China took advantage of such
an opening to expand its influence, seeking and getting a valuable port, Hambantota, in the
Indian Ocean.

What India will initially be looking for are some quick steps that can be taken by the executive in
Colombo — mainly in relief and rehabilitation of the displaced Tamils. India would also be looking
for a kind of statement on the future of the Tamils and how Sri Lanka plans to integrate them into
the mainstream.

For the present, the international imperative is to assist the Sri Lankans to set up relief and
rehabilitation centres for the thousands of displaced persons. India is moving its hospital to
Vavuniya and rotating its doctors who have been on duty for over a month now. In addition, India
will be sending material for 5,000 shelters which will house about 25,000 people.

Tamil Tigers: Timeline of 26 years of terror

1983: An ambush by the Liberation Tigers of Tamil Eelam (LTTE) in the north kills 13 soldiers,
triggering anti-Tamil riots in the Sri Lankan capital, Colombo. Hundreds are killed and thousands
flee.
1987: Government creates new councils for Tamil areas in north and east, and signs agreement
with Indian Prime Minister, Rajiv Gandhi for India to send peace-keeping troops to enforce a
truce. The Tigers refuse to disarm and three years of fighting ensues. More than 1,200 Indian
soldiers killed in clashes with LTTE.
1990: India withdraws from Sri Lanka. The LTTE gains control of the northern city of Jaffna,
expelling Muslims.
1991: Rajiv Gandhi is assassinated by a suspected LTTE suicide bomber after his efforts to bring
about peace in Sri Lanka prove unpopular.
1993: Sri Lankan President Ranasinghe Premadasa is killed in Colombo by a suicide bomber.
1995: The government agrees to a truce with rebels, but the conflict flares again after LTTE sinks
a naval craft. The government regains control of Jaffna, but war continues across the north and
east of the country for the next six years. A suicide attack on the country’s international airport
destroys half the Sri Lankan Airlines’ fleet. A bomb attack wounds President Kumaratunga.
2002: Norwegian mediation leads to a landmark ceasefire and the decommissioning of weapons
begins. The road linking the Jaffna peninsula with the rest of Sri Lanka is opened for the first time
in 12 years. The government lifts a ban on Tamil Tigers, who drop their demand for a separate
State.
2004-05: Tamil Tiger commander Colonel Karuna Amman breaks away from LTTE, taking 6,000
fighters with him. State of emergency declared after a suspected Tiger assassin kills the Sri
Lankan foreign minister. Anti-Tiger hardliner Mahinda Rajapaksa wins the Presidency.
2006: Fighting flares up and fresh talks in Geneva fail. But the following year, government forces
capture LTTE strongholds.
2008: In early January, the government pulls out of the 2002 ceasefire agreement and launches a
massive offensive.
January 2009: Troops capture Kilinochchi–the northern town held by Tamil Tigers for 10 years
and used as their administrative headquarters. President Rajapaksa calls it an unparalleled
victory and urges rebels to surrender.
April 2009: The government gives rebels 24 hours to surrender after rejecting calls for a truce.
Tens of thousands of civilians leave the battle zone.
May 2009: President Rajapaksa says the war has ended. He addresses the nation and reaches
out to Tamils. Sri Lankan state TV shows pictures it claims are those of the dead body of the
LTTE chief Velupillai Prabhakaran.
Given vote in 2005, Kuwaiti women now in Parliament: Four Kuwaitis have become the first
women elected to their nation’s Parliament, a resounding victory in a conservative Persian Gulf
country where the legislature has been men-only for almost half a century. Women gained the
right to vote and run for office in 2005 but failed in two previous elections to win seats in the 50-
member Parliament. Kuwait, one of the few democracies in the Gulf, has led the region in giving
its people political rights. Some critics, however, say the country’s political stability and economy
have suffered due to the Parliament’s frequent clashes with cabinets that are still selected and led
by the ruling family.

One of the women elected, Massouma al-Mubarak, was also the country’s first female cabinet
minister. The other female winners were women’s rights activist Rola Dashti, education professor
Salwa al-Jassar and philosophy professor Acil al-Awadhi.

The election results also showed fundamentalist Muslims losing ground. They won 16 seats,
down from the 24 seats they held in the previous House.

PAKISTAN—SC allows Sharifs to contest polls: In a landmark judgement of far-reaching

political implications, a larger bench of the Supreme Court, on May 26, 2009, declared former
premier Nawaz Sharif and his brother and Chief Minister of Punjab Shahbaz Sharif eligible to
seek any elective public office. The five-judge court led by Justice Tsaddaq Hussain Gilani
overruled an earlier verdict by a 3-member bench disqualifying both brothers from contesting
elections.

The court ruling was widely acclaimed by political and legal circles in the country. Prime Minister
Yousaf Raza Gilani called up Sharif brothers to congratulate them. Nawaz Sharif described the
verdict as outcome of restoration of independent judges due to unprecedented struggle by the
people of Pakistan.

The court ruled in favour of Sharifs' eligibility on review petitions filed by them. The Sharifs had
refused to appear before the previous bench saying its members had taken oath under General
Musharraf's Provisional Constitution Order.

Nawaz Sharif had been disqualified on the basis of punishment awarded by an anti-terrorism
court on charge of ordering the hijacking of a PIA plane on October 12, 1999, in which the then
army chief Gen Musharraf was returning from Colombo.

30 killed in Lahore blast: A car bomb blast in Lahore killed at least 30 persons and injured 80 on
May 27, 2009.The city headquarters of Pakistan's main security agency, the Inter Services
Intelligence (ISI) was targeted. It was one of the most devastating and audacious suicide attacks
Lahore has witnessed so far. It is one of its busiest centres where key officials, commercial
buildings, including the provincial assembly, are located. Most of these buildings were damaged.
The latest explosion was the third major strike in Lahore in as many months.

Earlier, in March the Sri Lankan

Cricket team was targeted and two weeks later suicide bombers occupied a police training centre
near Lahore killing several policemen.
The attackers used guns and grenades to shoot their way into the ISI building but failed to
overcome barriers and guards. Instead they detonated about 120 kg of explosives in their van
outside the newly built three-storey rescue police building that collapsed instantly, burying dozens
of policemen.

Top government officials described the incident as a fallout of the ongoing military operations in
Swat and tribal areas (FATA) which, they said, was expected. President Asif Zardari termed it as
"dying kicks" of an enemy on the run. Interior minister Rehman Malik said militants facing defeat
in Swat and FATA in the ongoing operations are making last gasp efforts to terrorise people and
destabilise the country.

Taliban vengeance comes to haunt Pak cities: Pakistan is paying a very heavy price for its
anti-Taliban offensive in the northwest. Cities like Lahore, Peshawar and Islamabad have become
favourite targets of suicide attacks on security establishments ever since Pakistan intensified
attack on the Taliban in its tribal areas in North West Frontier Province.

In April 2009, when government moved troops to Malakand in NWFP to take on the Taliban,
Baitullah Mehsud, the chief of Tehrik-e-Taliban Pakistan (TTP), had threatened to take the battle
to the main cities of the country.

There’s yet another frightening aspect to Taliban’s latest strategy: many of its fighters have
infiltrated into the refugee camps. Pakistani forces have arrested several such Taliban militants in
Mardan and other parts of the Frontier province.

Emergency fund gets nod: Thirteen East and Southeast Asian countries have agreed to set up
a $ 120 billion emergency fund for use in an economic down-turn, the first independent move by
Asia to shield itself from financial crisis. China and Japan have each committed to provide 32% of
the regional fund, known as the Chiang Mai Initiative. South Korea has committed to 16%, with
the rest coming from the 10-member ASEAN. The fund will offer emergency balance of payments
support to any country hit with the type of capital flight that marked the Asian financial crisis of
1997-98. The initiatives were announced on the Indonesian island of Bali, on the side lines of the
Asian Development Bank’s (ADB) annual meeting on May 3, 2009.

ANC sweeps poll in South Africa: The African National Congress (ANC) has swept South
Africa’s general elections, held in April 2009, securing a decisive majority, paving the way for
party leader Jacob Zuma to become President, who vowed to build a better life for all, including
blacks, whites, coloured and Indians. The ANC, which has swept the country’s first three post-
apartheid polls since 1994, however failed to retain its two-thirds majority in the 400-member
Parliament. The ANC won 65.9 per cent of the 18 million votes cast. It was allotted 264 seats,
three short of two-thirds, and 33 fewer than it had held in the last Parliament. The opposition
Democratic Alliance got 67 seats while the recently formed breakaway faction of ANC, Congress
of the People (COPE) of Mbeki’s supporters could muster only 30 seats. The Inkatha Freedom
Party managed to get 18 seats.

Protests in Bangkok: April 2009 saw a major escalation of anti-government protests that have
affected this nation. At least 74 persons were reported injured in the clashes, most of them in a
pre-dawn confrontation in which the demonstrators hurled at least one gasoline bomb and fired at
the troops. The demonstrators were demanding the resignation of Prime Minister Abhisit
Vejjajiva, saying his four-month-old government came to power illegally. On April 14, 2009, Thai
Anti-Government protesters finally ended a three-week siege of the Prime Minister’s office,
easing fears for the time being that prolonged turmoil would further damage the economy.
Thailand’s intractable political crisis broadly pits royalists, the military and the urban middle-class
against the rural poor loyal to Thaksin.

Fiji President repeals Constitution, becomes head of State: Fiji President Ratu Josefa Iloilo
repealed the Country’s constitution on April 10, 2009, appointed himself head of State and set a
2014 election deadline. He said he had also sacked all the judges and established a “new legal
order” following Court of Appeal ruling that the country’s military regime was illegally appointed
after the 2006 coup. The court ruling, which declared the interim government of coup leader
Voreqe Bainimarama to be invalid, ruled that Iloilo appoint a distinguished person to act as
caretaker Prime Minister. That person should neither be Bainimarama nor the deposed Prime
Minister Lalsenia Qarase, the court said.
Obama lifts travel curbs on Cuba: US President Barack Obama has made a landmark gesture
to communist Cuba, lifting all curbs on travel and money transfer by Cuban-Americans to the
island for the first time in three decades. The White House said the move was intended to
encourage expanding democratic and political rights in Cuba and called on Havana to respond in
kind to help ease decades of fierce anti-pathy between the bitter foes. But the move left a 47-
year-old US economic embargo on Cuba intact, with the White House saying it was up to Raul
Castro’s government as to whether Obama’s steps would result in a thawing of relations.
President Obama’s actions were met with a tepid response in Havana’s halls of government, with
Cuba’s former Leader Fidel Castro declaring his country was not looking for “charity”, but instead
an end to the embargo.

Declaration against Racism: A United Nations meeting on Racism has adopted a final
declaration against racism, xenophobia and intolerance. Earlier, the US had refused to attend the
UN conference on racism on saying that its concerns are not being addressed in the document to
be adopted at the international meeting at Geneva. At the same time, the US said it remains fully
committed to upholding the human rights of all individuals and to fighting racial discrimination of
every form in every context. The US also has serious concerns with relatively new additions to
the text regarding “incitement”, that run counter to the US commitment to unfettered free speech.

JUNE
CURRENT NATIONAL AFFAIRS

New SEZs cleared

On June 2, 2009, the Union government approved ten special economic zones and allowed one-
year extension to four projects, including Reliance Industries' Mukesh Ambani-promoted Rewas
Ports, for land acquisition.

The Board of Approval (BoA) in the Commerce Ministry gave formal approvals to eight proposals,
including those of Gulf Oil Corporation, Emmar MGF and Larsen and Toubro. Two other
proposals were also given 'in-principle' approvals.

The board also allowed DLF to withdraw four of its IT/ITeS tax-free enclaves, asking the realty
major to refund Rs 6-7 crore worth of fiscal sops the company would have availed of. DLF had
cited economic downturn as reasons for seeking withdrawal.

However, the BoA outrightly rejected the proposals of Videocon Realty and Writers and
Publishers for SEZs in Indore, on the ground that the promoters have not acquired "even an inch"
of land.

The two proposals that have got in-principal approval include: Krishnapatnam Infratech in Kota
Mandal (Andhra Pradesh) and Maharaja Multitrade in Nashik (Maharashtra), for multi-product and
multi-services SEZs, respectively.

Since 2006, when the SEZ Act was notified, formal approvals have been granted for setting up
568 SEZs, of which 315 have been notified.

Yashpal panel report on Education sector

The beginning of bold reforms in the higher education sector was made on June 24, 2009, with
the 24-member Yashpal committee—constituted last year to suggest revamp measures—
scripting the end of regulatory mechanism era in India and rooting for university autonomy. In its
report submitted to the government, the panel favoured vesting universities with full academic
responsibility by allowing them the freedom to self regulate, choose the courses they want to offer
and even design them.

The panel said institutes of excellence like the IITs and the IIMs should function like world-class
universities, offering a range of courses in science, astronomy, management, psychology and
philosophy in line with the global trends of inter-disciplinary approaches.

On the regulatory mechanism front, the panel’s report, “Renovation and Rejuvenation of Higher
Education”, said the UGC, AICTE and MCI should not have a regulatory role and could be
merged with the new National Commission for Higher Education and Research, which the
committee recommended.

It called for a constitutional amendment to create the seven-member panel, which would function
like the Election Commission. The Prime Minister, Leader of the Opposition and Chief Justice of
India would select the members.

The commission would work as a facilitator to higher education institutes, which would be armed
with the necessary legal mechanisms to offer courses of their choice. Notably, the commission is
a part of the UPA’s promises and was mentioned by the President in her June 4, 2009 address to
the Parliament. To bring it to life, the government would now have to bring a draft Bill.

On UGC and AICTE, Yashpal said a new commission could not be created unless old structures
were removed. His report takes note of the delays, excessive inspection and corruption in the
universities’ dealing with governments.

President’s address to the Parliament

More than six months after the Mumbai terror attacks, India, on June 4, 2009, extended olive
branch to Pakistan with President Pratibha Patil asserting that the new UPA government would
reshape the relationship with Islamabad provided the neighbouring country sincerely dealt with
terrorist groups acting against India.
Emboldened by a reasonable participation by the people in the recent elections in Jammu and
Kashmir, she also declared the UPA government’s resolve to constructively engage with all
groups that abjure violence in the State, as also in North-East and other parts of the country.
Laying the road-map for the new UPA government in an address to the joint session of
Parliament, President Patil announced that the government would maintain utmost vigil in the
area of internal security by pursuing a policy of zero-tolerance towards terrorism, set up a national
counter-terrorism centre to take anti-terrorism measures and seek an early approval of the bill for
the prevention of communal violence.

As the first woman President of the Republic addressed the members from the two Houses in the
Central Hall of Parliament, seated on her left was another woman—Meira Kumar—who made
history a day before by becoming the first woman Speaker of the Lok Sabha.

Noting that creativity, innovation and enterprise held the key to people and nations realising their
potential, the President observed that the ‘dreary desert sand of dead habit’ must be left behind.
The young people were tearing down the narrow domestic walls of religion, region, language,
caste and gender that confined them. “My government will ensure that its policies for education
and science and technology are imbued with a spirit of innovation so that the creativity of a billion
people is unleashed,” she said, declaring that the next ten years would be dedicated as a
‘Decade of Innovation’.

Describing the armed forces as the nation’s pride, she announced that they would be fully
enabled with modern technology to repel any threat from land, sea or air. To enhance combat
efficiency as also to address the requirements of modern day warfare, a number of steps were
under way.

The address to Parliament also talked at length on the government’s pro-poor policies, and
moves to strengthen welfare schemes and boost the economy. There were promises to enlarge
the scope of NREGA, which has proved to be an effective social protection measure; introduce a
new right to food Act; address the challenges in the health sector such as infant mortality,
nutrition and pre-emptive cure; make quality education a right through the enactment of a new
law; set up a national literacy mission for women; raise the target of rural housing for the next five
years to one lakh twenty crore units; introduce a major housing scheme for the urban poor; and
take up initiatives for skill development.

India-Bahrain pact to protect workers

India and Bahrain have inked a key agreement to ensure protection for Indian workers against
unscrupulous employers. The agreement included housemaids who were not covered by
Bahrain’s Labour Law and was signed during the visit of Overseas Affairs minister, Vayalar Ravi
in June 2009. As per the agreement, a committee will be constituted to ensure that directives in
the agreement are implemented and will consist of officials from Bahrain’s Labour Ministry and
Indian Overseas Affairs Office. Employers who want to recruit Indian workers will now have to
specify the nature of the work they will be doing and the required professional skills. Other
required details include the duration of contract, an agreed salary and end-of-contract benefits,
health services and holidays.

Prime Minister Manmohan Singh meets Pak President

A significant meeting between Prime Minister Manmohan Singh and Pakistan President Asif Ali
Zardari, held at Yekaterinburg, Russia on June 16, 2009, sent out a clear message that India and
Pakistan were edging towards the normalisation of bilateral ties, nearly seven months after the
Mumbai terror attacks. They directed their foreign secretaries to meet within the next one month
and discuss the “primary issue of terrorism” before the two leaders meet again on the margins of
the NAM Summit in Egypt on July 15-16.

“I am pleased to meet you, His Excellency, I have a limited mandate to tell you that the territory of
Pakistan should not be allowed to be used for terrorist acts against India,” Manmohan Singh
firmly told the Pakistani leader right at the start of their 40-minute meeting. President Zardari was
virtually rendered speechless for a while as neither he nor any member of his delegation
expected such strong words from the Prime Minister.

The three conditions laid by Manmohan Singh for the resumption of dialogue were: Pakistan must
take strong and effective action against forces representing terrorism, act against the perpetrators
of terror attacks in India and dismantle the terrorist infrastructure. He also conveyed to Zardari
India’s disappointment over the release of Hafiz Saeed, chief of the Jamat-ud-Dawa (Jud), one of
the key plotters of the Mumbai carnage.

The beleaguered Pakistan President, who is facing the heat from the Pakistan Army, as well as
the ISI back home, explained to Manmohan Singh the steps being taken by Pakistan to tackle
terrorism and the problems the country was facing to deal with the menace.

Maoists banned
The Cental government, on June 22, 2009, formally listed CPI (Maoist) as a separate terrorist
outfit under the Unlawful Activities (Prevention) Act. Though the decision will make little difference
on the ground as the ban on CPI (Maoist) was already in effect by virtue of its constituents—
CPI(ML), People’s War Group and MCC, along with all their formations and front organisations—
featuring in the list of terrorist outfits under the UAPA, it is aimed at clearing any ambiguity
regarding the illegal status of CPI (Maoist).

The CPI (Maoist) is the 35th organisation to be listed as terrorist outfit under UAPA.
It was formed by the merger of CPI (ML)-People’s War Group and MCC in September 2004. The
question of a separate ban on CPI (Maoist) had come up soon after the merger, but the law
ministry then took the view that there was no need for such ban as the UAPA clearly listed the
formations and front organisations of CPI (ML)-People’s War Group and MCC as terrorist outfits,
thus also including in its ambit CPI (Maoist). Besides, there were some differences within the
constituent Naxal outfits regarding the acceptability of the merger—the Maoists in Nepal had at
the time refused to recognise the merge—leading the Centre to settle for status quo.
The question of a separate ban on CPI (Maoist) cropped up again when Union Home Minister P.
Chidambaram took a closer look at status of Naxalite outfits under UAPA. The minister is said to
have insisted on a fresh ban on the merged outfits, CPI (Maoist), under which the Left-wing
extremists were now operating in most States.

The Criminal Law Amendment Act, 1908, empowers the State government to declare an
association as “unlawful.” Accordingly, while Orissa, Jharkhand and Tamil Nadu have declared
CPI (Maoist) as an unlawful association, Bihar has listed MCC and CPI(ML)-PW as unlawful.
Andhra Pradesh, MP and Chattisgarh have enacted their own separate State legislations
declaring the CPI (Maoist) as an unlawful outfit. Under UAPA, last amended in December 2008,
the Centre is also empowered to declare an association as unlawful.

The Act also defines a terrorist organisation in Section 2(1)(m), which are then specifically listed
in the Schedule to the Act.

Security forces take control of Maoist-controlled areas in West Bengal

On June 30, 2009, security forces took control of Kantapahari, setting up a police camp after four
years in the hub of Maoist-backed tribal agitation, with the West Bengal Government claiming that
95 per cent of the areas have been wrested from the ultras in West Midnapore district. Around
1,600 personnel of paramilitary forces, police and COBRA, the special anti-Naxal force, reached
Kantapahari from both Lalgarh and Ramgarh ends as a helicopter kept an aerial vigil.
The Maoists set off a landmine and fired at the security forces in a forested area between
Pirakata and Lalgarh but the troops retaliated. In Kolkata, Chief Minister Buddhadeb
Bhattacharjee said the joint forces had been able to liberate nearly 95 per cent of the areas. The
operations had been bloodless with no major encounter.

Earlier, the Maoists had gone on a rampage, targeting ruling CPM cadres and offices and had
virtually taken control of a large area in West Midnapore district after driving away the police and
paramilitary forces.

Today’s Bengal is a throwback to the Naxalbari uprising of the 1960s after tribals killed a police
sub-inspector. The year was 1967, and the Left-led United Front was in power in the State. The
recent Maoist violence has also ignited memories of the Sainbari killings in Burdwan in 1969
where CPM laid a siege. Forty years later, the State seems set for another round of bloodletting
with the main opposition, Trinamool Congress, adopting the same tactic as the Left in the ‘60s:
upstaging the ruling party on people’s insecurity. Ballot and bullets have ruled these parts since
1999 with rival groups in far flung pockets in West Midnapore, Bankura, Purulia, Birbhum and
Hooghly fighting protracted gun battles. Violence and counter-violence are a major tactic of
political parties to command support in the villages.

Babus to be insulated from netas

The end of the transfer/posting raj is in sight. Bureaucrats are set to get a new deal with the
Centre readying a legislation that will not only assure babus of fixed-tenure postings but also
protect them from political interference in their day-to-day functioning. Besides, all bureaucratic
appointments, transfers and postings will be subject to Parliamentary scrutiny. As a
consequence, IAS and IPS officers in the country will no longer be at the mercy of the whimsical
transfer regime that operates currently.
However, along with these comforts will come added responsibility. The government plans to
bring in a new public service code that will lay down a strict performance evaluation regime for
promotions and postings of babus. All these provisions are expected to be part of the Civil
Services Bill, 2009, a draft of which is being fine-tuned.

The Bill, which incorporates various suggestions of the second Administrative Reforms
Commission, envisages setting up of a new Central Public Service Authority which will not only
professionally manage civil services but also serve the interests of babus and citizens alike
through checks and balances.

The Civil Services Bill moots: fixed tenure of three years per posting for all IAS and IPS officers; a
new agency, Central Public Services Authority, to work as a watchdog against political
interference in the bureaucracy. It will also keep a watch on performance of babus; Postings to
be strictly on basis of performance evaluated on a number of tasks assigned to bureaucrats over
the years.

CURRENT INTERNATIONAL AFFAIRS

Iran’s Presidential polls

On June 14, 2009, hardline President Mahmoud Ahmadinejad was declared winner of the
Presidential election held on June 12. The result was, however, bitterly contested by the
opposition candidate Mir Hossein Mousavi. Ruling out any recounting of votes country’s supreme
leader Ayatollah Ali Khamenei said President Mahmoud Ahmadinejad’s re-election victory was
credible and insisted that the Islamic republic’s election mechanisms allowed no cheating. He
said the street protests to pressure for change were not acceptable.

Khamenei insisted the elections showed off the country’s religious democracy for the world to
see, shrugging an unprecedented challenge to the country’s ruling clerics by opposition
supporters, who claimed the June 12, 2009 Presidential election was rigged. He said there was
“definitive victory” and no rigging in the disputed Presidential elections.

“There is 11 million votes difference, Khamenei said. “How one can rig 11 million votes?” “The
enemies (of Iran) are targeting the Islamic establishment’s legitimacy by questioning the election
and its authenticity before and after (the vote)”.

On June 14, 2009, the Iranian police clashed with people protesting in Tehran against the re-
election of hardline President Mahmoud Ahmadinejad. The unrest that rocked Tehran and several
other cities was the sharpest expression of discontent against Iran’s leadership for years.
Supporters of defeated moderate Mirhossein Mousavi, who dismissed Ahmadinejad’s triumph as
a “dangerous charade”, gathered in central Tehran, chanted his name and threw stones at police.

The scale of Ahmadinejad's triumph upset widespread expectations that the race would at least
go to a second round, and his victory is unlikely to help unblock a standoff with the West over
Iran's nuclear programme. Interior Minister Sadeq Mahsouli, an ally of hardliner Ahmadinejad,
declared that the President had been re-elected to a second four-year term with 62.6 per cent of
the vote, against 33.7 per cent for Mousavi, in a record 85 per cent turnout.

The bitter election campaign generated strong interest around the world and intense excitement
inside Iran. It revealed deep divisions among establishment figures between those backing
Ahmadinejad and those pushing for social and political change. Ahmadinejad accused his rivals
of undermining the Islamic Republic by advocating detente with the West. Mousavi said the
President’s “extremist” foreign policy had humiliated Iranians.

The three-week election campaign was marked by mudslinging, with Ahmadinejad accusing his
rivals of corruption. They said he was lying about the economy. Inflation, officially put at 15 per
cent, and unemployment were core issues in the debate.
On June 22, locked in a continuing bitter contest with Iranians who were of the view that the
Presidential polls were rigged, the authorities finally acknowledged that the number of votes cast
in 50 cities exceeded the actual number of voters. But the authorities insisted that discrepancies,
which could affect three million votes, did not violate Iranian law and the country’s influential
Guardian Council said it was not clear whether they would decisively change the election result.
Iran’s top election body, however, ruled out cancelling the disputed Presidential vote as the world
voiced increasing alarm at the violent crackdown on opposition demonstrators, posing the most
serious challenge to the Islamic regime in 30 years.

Israeli PM endorses Palestinian Statehood

Under pressure from the US President Obama’s administration, Israeli Prime Minister Benjamin
Netanyahu has for the first time endorsed a two-State solution in the Middle East, drawing praise
from the West but flak from Palestinians who rejected the offer citing the tough conditions
attached.

In a policy speech on June 15, 2009, that came a week after US President Barack Obama’s
address to the Muslim world, Netanyahu said the “Palestinian State” would have to be
demilitarised and recognise Israel as a State of the Jewish people.

The hardliner Israeli Premier had resisted agreeing to a two-State solution to the Israel-
Palestinian conflict all through his political career and his veiled acceptance was couched under
several other conditions, including refusal to allow Palestinian refugees to settle in Israel and
keeping united Jerusalem the capital of Israel.
The address at Bar Ilan university, considered the bastion of Israeli right, came in the wake of
Obama’s insistence that Israel impose a complete freeze on West Bank settlement construction
and recognise the two-State solution.

President Obama welcomed the speech as an “important step forward” while the European Union
described it as “a step in the right direction”.

However, the Palestinians were skeptic and angry. “Netanyahu’s remarks have sabotaged all
initiatives, paralysed all efforts being made and challenges the Palestinian, Arab and American
positions,” said Nabil Abu Rdeineh, a close aide to Palestinian Authority (PA) President Mahmoud
Abbas. Reacting angrily to Netanyahu’s assertions that Palestinian refugees will not be allowed to
settle in Israel and undivided Jerusalem will stay its capital, Rdeineh said, “this will not lead to
complete and just peace”.

Nepal revokes army chief’s sacking

In order to avoid possible tussle between President Dr Ram Baran Yadav and Prime Minister
Madhav Kumar Nepal, the newly formed Cabinet decided to uphold Yadav’s decision to retain the
sacked Chief of Army Staff Rookmangud Katawal to his post.

The Cabinet has also nullified the controversial decision taken by the Unified Communist Party of
Nepal–Maoists (UCPN-M)-led government to appoint Lt. Gen Kul Bahadur Khadka as the acting
Chief of army.

After receiving pressure from the party rank and files, including the commanders of the Maoists
combatants, the then Prime Minister and UCPN-M chairman Prachanda’s cabinet, on May 3,
2009, had sacked Katawal unilaterally and appointed Khadka as acting chief. As a result it had
invited serious political and constitutional tussle between the President and the then government
that finally forced the Maoist chairman Dahal to step down on May 4.

The meeting has annulled the May 4 Cabinet decision where the Dahal-led Cabinet’s last meeting
had dubbed the President’s move to retain sacked army chief Katawal as “constitutional coup”
and asked President Yadav to correct his unconstitutional move to uphold the civilian
supremacy. However, Yadav had refused to do so saying that whatever he had done was based
on good faith and it was his responsibility to protect the constitution as Head of the State and
avoid possible rift within the national army as its patron.

Burqa not welcome in France

The Islamic burqa is “not welcome” in France because it is not a symbol of religion but a sign of
subservience for women, as per a statement by President Nicolas Sarkozy. “We cannot accept to
have in our country women who are prisoners behind netting, cut off from all social life, deprived
of identity,” he said.

“It will not be welcome on the territory of the French republic,” Sarkozy told a special session of
Parliament. He further added that he was in favour of holding the inquiry sought by some French
lawmakers into whether Muslim women who cover themselves fully in public undermine French
secularism and women’s rights.

But the president added “we must not fight the wrong battle; the Muslim religion must be
respected as much as other religions in France”.
The proposal to hold an inquiry has won support from many politicians from both the Left and
Right, but France’s official Muslim council accused lawmakers of wasting time focusing on a
fringe phenomenon.

In France, the terms “burqa” and “niqab” often are used interchangeably. The former refers to a
full-body covering worn largely in Afghanistan with only a mesh screen over the eyes, whereas
the latter is a full-body veil, often in black, with slits for the eyes.

France had enacted a law in 2004 banning the Islamic headscarf and other conspicuous religious
symbols from public schools, sparking fierce debate at home and abroad. France has Western
Europe's largest Muslim population, an estimated five million people.

One billion go hungry world over

One in six people in the world or more than one billion are now hungry, a historic high due largely
to the global economic crisis and stubbornly high food prices, according to Food and Agriculture
Organization (FAO). Compared with 2008, there are 100 million more people who are hungry,
meaning they receive fewer than 1,800 calories a day, FAO said. Almost all the worlds
undernourished live in developing countries, where food prices have fallen more slowly than in
the richer nations, the report said. Poor countries need more aid and agricultural investment to
cope, it said.

The silent hunger crisis, affecting one-sixth of all of humanity, poses a serious risk for world
peace and security, said the Director-General of FAO, Jacques Diouf. Soaring prices for staples,
such as rice, triggered riots in the developing world in 2008. Hunger increased despite strong
2009 cereal production, and a mild retreat in food prices from the highs of mid-2008. However,
average prices at the end of 2008 were still 24% higher in real terms than in 2006.

Globally there are now about 1.02 billion people hungry, up 11% from 2008’s 915 million. The
estimates are based on analysis by the US Department of Agriculture. Asia and the Pacific, the
world’s most populous region, has the largest number of hungry people at 642 million. Sub-
Saharan Africa has the highest hunger rate, with 265 million under-nourished, representing 32%
of the region’s population.

G-8 nations see signs of economic stability

Citing “signs of stabilisation” in their economies, G-8 Finance Ministers have decided to ensure
that such trends emerging in the global economy should be nurtured and asked the IMF to study
exit strategies to “unwind” their hefty stimulus packages. On macroeconomic conditions, the
Ministers recognised that the coordinated policy action implemented so far has borne some fruit,
citing a recent rise in stock prices, a decline in interest rate spreads, and improved business and
consumer confidence. “There are signs of stabilisation in our economies,” said a joint statement
of the ministers from the G-8 countries—Britain, Canada, France, Germany, Italy, Japan, Russia
and the United States—after their two-day meeting in Lecce, Italy, in June 2009.

The G-8 ministers said they discussed “appropriate strategies” on how to find a way out of big
fiscal spending once their economies recover. They, however, noted that the framework for
unwinding the unusual measures taken so far to fight the global economic crisis should “vary from
country to country.”

US treasury secretary Timothy Geithner warned after the meeting that nations should not
implement policy restraint too early as the global economy has yet to enter a recovery phase
despite recent signs of improvement. But he echoed the G-8 statement’s call for charting the
future course for the restoration of fiscal balances, saying financial and economic recovery “will
be stronger and more sustainable if we make clear today how we get back to fiscal sustainability
when the storm has finally passed.”
The ministers also reaffirmed the importance of combating all forms of money laundering and the
financing of terrorism. In addition to macro-economic issues, major items on the meeting agenda
were climate change, food security, financial regulation and strengthening the lending capacity of
international organisations to assist developing countries.

IMF bond plan attracts emerging nations

The International Monetary Fund's plan to issue bonds for the first time has attracted several
large emerging countries looking to diversify investments to the detriment of the dollar, whose
lustre is dimming under the mushrooming US budget deficit.

After the G-20 major developed and emerging market countries pledged in April 2009 to boost the
IMF's resources by $500 billion, each country must determine just how to deliver. To help gather
such a colossal sum, the 185-nation IMF has decided to take the unprecedented step of issuing
bonds.

Three countries lined up for the notes in the space of two weeks: Russia, China, then Brazil. Both
Russia and Brazil are in the market for $10 billion worth, while China is aiming for $50 billion.
Other G-20 members could follow, such as India or Saudi Arabia.

The new bonds will be offered in the IMF accounting unit, Special Drawing Right (SDR), whose
value is based on a basket of currencies, re-balanced daily, in which the dollar represents only a
41% share. It is the dollar's relative weakness in SDRs that has raised market concerns that
some countries are seeking to distance themselves from the greenback, the world's reserve
currency.

For some, the announcements by Russia, China and Brazil are troubling rumbles for the US. "It is
a clear sign that these countries are not comfortable with their large dollar holdings and should be
read by the US as an additional signal of market unease about their large budget deficit," said
Desmond Lachman of the American Enterprise Institute, a Washington think tank.

Green energy investments in developing nations rise 27%

The global economic crisis hasn’t deterred the developing countries from their green energy
investments, which surged 27% in 2008 to $36.6 billion. According to a recent report of United
Nation Environment Programme (UNEP) on Global Trends in Sustainable Energy Investment,
2009, global investment in clean energy witnessed a four-fold increase in 2008, compared to
2004.
Of the $155 billion invested in 2008 in clean-energy companies and projects worldwide, China,
India, Brazil and African countries, among others, contributed almost a third of the amount. While
China led investments in Asia with an 18% increase over 2007 to $15.6 billion, green energy
investments in India grew 12% to $4.1 billion in 2008.

However, growth in clean energy sectors stalled in developed countries, said the report, which is
being jointly prepared by the UNEP and global information provider New Energy Finance.
The total transaction value in the sustainable energy sector—including corporate acquisition,
asset refinancing and private equity buyout— during 2008 was $223 billion, an increase of 7%
over 2007. However, the capital raised via stock markets fell 51% to $11.4 billion as share prices
of clean energy companies lost 61% of their value during 2008.

According to UNEP estimates, the world needs $750 billion to finance a sustainable economic
recovery by investing in the greening of five key sectors: buildings, energy, transport, agriculture
and water.

Pak diverted US aid to N-programme

Pakistan diverted a whopping sum of over $5 billion provided as aid by the US to fight Taliban
militants into its nuclear programme, according to a report by security expert Andrew Cockburn.
"Most of the aid we've sent them over the past few years has been diverted into their nuclear
programme," the report published in 'Counter Punch' quoted a senior national security official in
the Obama administration as saying.

Most of this 'diverted aid' was officially designated "Coalition Support Funds" for Pakistani military
operations against the Taliban.
The report said the US allowed Pakistan's nuclear programme to continue in violation of its policy
of non-proliferation, as it needed its help in defeating the Soviets in Afghanistan, among other
things, and even the Obama administration has not changed this policy.

Pakistan has also misused a substantial amount of military aid from the US, meant to fight
terrorism, to build up its army with modern weapons and equipment for a conventional warfare
against India, according to released Pentagon documents. All this was done with the knowledge
of the then Bush administration, which not only provided $1.9 billion in Foreign Military Financing
(FMF), but also signed agreements with Pakistan for military sales worth nearly $5 billion during
the period.

While the Taliban and Al-Qaida gained ground in the tribal areas of Pakistan bordering
Afghanistan, Islamabad bought eight P-3C Orion maritime patrol aircraft and their refurbishment
worth $474 million. It also placed orders for 5,250 TOW anti-armour missiles worth $186 million.
Besides buying more than 5,600 military radio sets worth $163 million, Pakistan bought six
AN/TPS-77 surveillance radars worth $100 million and six C-130E transport aircraft and their
refurbishment worth $76 million.

Under the Excess Defence Articles (EDA), it was granted 20 AH-1F Cobra attack helicopters,
which were then refurbished.

Pakistan also used a substantial chunk of America’s FMF to purchase up to 60 mid-life update
kits for F-16 A/B combat aircraft valued at $891 million. Of this, it paid $477 million from the FMF
funds given by the United States.

Similarly, of the $87 million worth order for 115 M-109 self-propelled howitzers, it paid $53 million
from FMF. And all this happened while Pakistan’s economic situation deteriorated.

US President Obama calls for a new beginning between Islam and West
On June 4, 2009, extending a hand of friendship to the Muslim world, US President Barack
Obama called for a “new beginning between the United Sates and Muslims around the world,”
saying together they could confront violent extremism across the globe and advance the timeless
search for peace in the West Asia. “This cycle of suspicion and discord must end,” he said.

In a speech that was littered with references to the Quran, Mr Obama, who has been trying hard
to repair ties with the Muslim world that has been alienated by US policy, rolled out his plan for
engaging with the Muslim world. The President also used his own Muslim roots to push across
the message that the US was not against Islam or the Muslim world.

President Obama started his highly anticipated Cairo speech by going back in history and tracing
tensions that were rooted in history. “The relationship between Islam and the West includes
centuries of co-existence and cooperation, but also conflict and religious wars,” he said. After
going into history, he also touched on the main sources of current tension including the situation
in West Asia, Afghanistan and the nuclear stand-off with Iran.

On West Asia, the US President said that he understood both the Israeli and Palestinian position.
Expressing sympathy for the Palestinian cause, he supported an independent Palestinian State
that co-existed peacefully with Israel. Saying he would not see the conflict from just one side, he
said that Israelis must acknowledge that just as Israel’s right to exist cannot be denied, neither
can Palestine’s and that Israel must live up to its obligation to ensure that Palestinians can
develop their society.

On Afghanistan, he said the US had gone to Afghanistan out of necessity after the 9/11 attacks in
which the al-Qaeda killed 3,000 people. He further said the US did not want to keep troops in
Afghanistan. “We would gladly bring every single one of our troops home if we could be confident
that there were not violent extremists in Afghanistan and Pakistan determined to kill as many
Americans as they possibly can. But that is not yet the case,” he said.

Finally on Iran, President Obama said the US has made it clear to the Iranian leadership that it is
prepared to move forward. He said he understood the protest that some countries have weapons
that others do not. “No single nation should pick and choose which nations hold nuclear weapons.
That is why I strongly reaffirmed America’s commitment to seek a world in which no nations hold
nuclear weapons.” He said that any country, including Iran, had the right to access peaceful
nuclear power if it complies with its responsibilities under the nuclear Non-Proliferation Treaty.

All in all, his speech was largely well-received and there was anticipation that this could set the
stage for an easing of tension between the US and Muslim world.

SCO and BRIC nations meet at Yekaterinburg

Participating in back-to-back SCO (Shanghai Cooperation Organisation) and BRIC (Brazil-
Russia-India-China) summits at Yekaterinburg, Russia, in June 2009, Prime Minister Manmohan
Singh called for greater global cooperation to defeat terrorism and reform of international financial
institutions.

Delivering his first speech at an international forum during his second term as the Prime Minister,
he told the SCO Summit that terrorist crimes today were transnational in nature, adding "it is
imperative that we genuinely cooperate with one another and on a global scale to resolutely
defeat international terrorism."

India, along with Iran, Pakistan and Mongolia, participated as an observer at the summit of the
SCO, a six-nation regional grouping that brings together Russia, China and the Central Asian
Republics of Uzbekistan, Tajikistan, Kyrgyzstan and Kazakhstan.

This was the first SCO summit at which an Indian Prime Minister participated. The SCO leaders
had decided to include observer countries in full-format discussions at their last summit in
Dushanbe.

Prime Minister Manmohan Singh later attended the first BRIC Summit along with the Presidents
of Russia, China and Brazil. In a joint statement adopted by the BRIC leaders, the four nations
strongly demanded reforms of international financial institutions to reflect changes in the world
economy. "The emerging and developing countries must have a greater voice and representation
in international financial institutions, and their heads and senior leadership should be appointed
through an open, transparent and merit-based selection process."
On the global economic situation, the BRIC leaders emphasised that the poorest countries had
been hit the hardest by the financial crisis. “The international community needs to step up efforts
to provide liquidity for these countries. The international community should also strive to minimise
the impact of the crisis on development and ensure the achievement of the millennium
development goals."

The four nations called for strengthening coordination and cooperation among BRIC States in the
field of energy, including among producers and consumers of energy and transit states, in an
effort to decrease uncertainty and ensure stability and sustainability. They also underlined the
need for a more democratic and just multi-polar world order based on the rule of international law,
equality, mutual respect, cooperation, coordinated action and collective decision-making of all
States.

The BRIC nations condemned terrorism in all its forms and manifestations and reiterated that
there could be no justification for any act of terrorism anywhere or for whatever reasons.

Pak among top 10 failed States

Pakistan, split in the middle with terrorist attacks and facing an economic crisis, remains among
the top 10 failed States, says an index prepared by the Fund for Peace, an independent research
organisation. The country, placed ninth among all countries in 2008, in terms of its overall
achievement, has improved its position only by a notch—it was placed 10th in the index for 2009.
The annual exercise, now in its fifth year, ranks countries on the basis of the following factors:
demographic pressure, refugees/internally displaced persons, group grievance, uneven
development, and economic decline, de-legitimisation of the State, public service, human rights,
factionalised elites and external intervention.

The top 10 failed States in the latest list are: Somalia, Zimbabwe, Sudan, Chad, Democratic
Republic of Congo, Iraq, Afghanistan, Central African Republic, Guinea and Pakistan.
India is placed 87th among the 177 countries under study, with its score showing an improvement
over 2008.

JULY
CURRENT NATIONAL AFFAIRS

BANKING & FINANCE

RBI gives nod to cash withdrawals using swipe machines in stores
The Reserve Bank has allowed cash withdrawals using swipe machines at retail shops. The
facility will initially be available to the 14.3-crore people holding debit cards issued in India. One
will be able to withdraw up to Rs 1,000 in a day.

To avail this facility, a card holder will have to pay a fee of 2 to 3%. In case the card-holder also
makes a purchase with the card, the receipt will have to separately indicate the cash withdrawn.
For this, the swipe machines, or point-of-sale (PoS) terminals, will have to be upgraded. The
banks will split the service charge with retailers to entice them to offer this service. At present,
merchants pay a fee of 1.5-2% for every card transaction.

The move will particularly benefit customers in smaller towns and rural areas, which have few
ATM machines. It will also bring down the amount of money a retailer needs to deposit in a bank
every day as it can disburse the same for a fee. As for banks, the increased debit card usage will
translate into higher fee income.
RBI has said the facility can be made available at any merchant establishment designated by a
bank after due diligence.

RBI Policy Review

Announcing the first quarter policy review for Financial Year 2009-10, RBI Governor D. Subbarao
said the apex bank’s status quo on policy rates would anchor interest rate expectations that could
spur investment demand. With concerns over rising inflation, the RBI has decided to leave Cash
Reserve Ratio at 5 per cent and the repo and reverse repo rates at 4.75 per cent and 3.25 per
cent, respectively.

The RBI has projected inflation at 5 per cent from the 4 per cent forecast earlier. India’s GDP is
projected to grow to 6 per cent in March 2010 “with an upward bias”. Export demand remains
weak. The services sector is sluggish on lagged impact of weak industry growth, but the business
outlook has turned positive.

According to the RBI, its policy initiatives since mid-September 2008 aimed at providing ample
rupee liquidity and ensuring continued flow of credit to all productive sectors has shown results.
These actions have resulted in augmentation of actual/potential liquidity of over Rs 5,61,700
crore. The liquidity situation has remained comfortable since mid-November 2008 as evidenced
by the LAF window where the Reserve Bank has been absorbing nearly Rs 1,20,000 crore on a
daily average basis during 2009-10.

COMMISSIONS
Liberhan Commission on Babri Masjid demolition
It was on December 16, 1992 that M.S. Liberhan, then a judge of Punjab and Haryana High
Court, was asked to probe the conspiracy leading to the demolition of Babri Masjid—an event that
took communal polarisation to a new scale, and shaped the politics of the turbulent 1990s.

Seventeen years, 399 sittings, 100 witnesses, 48 extensions and Rs 9 crore later, Justice
Liberhan submitted his report to Prime Minister Manmohan Singh, indicting the BJP and its
leaders, including L.K. Advani and the Sangh Parivar for conspiring to demolish the Mughal-era
mosque at Ayodhya on December 6, 1992.

The indictment of other front-ranking Hindutva leaders is sharper, with former UP Chief Minister
Kalyan Singh, Uma Bharti, Murli Manohar Joshi, Ashok Singhal, Vinay Katiyar and others all
coming in for severe criticism for their individual culpability. As for Congress, the criticism is
limited to the “inaction” of former PM P V Narasimha Rao.

DEFENCE
‘One rank, one pension’ for officers, too
Defence Minister A.K. Antony clarified in the Lok Sabha on July 12, 2009, that "one rank, one
pension" recommendation of the Cabinet Secretary-led panel had been accepted by the
government for jawans as well as officers.

The decision is now nearer to the goal of “one rank, one pension” demand of nearly 1.5 million
personnel, Mr Antony said during question hour. The total financial implications on account of
benefits to the personnel would be Rs 2,144 crore.

The committee has recommended inclusion of Classification Allowance for the Personnel Below
Officer Rank (PBOR) from January 1, 2006, and removal of linkage of full pensions with 33 years
from the same date. The committee also recommended revision of pension of Lt Generals after
carrying out a separate pay scale for them, bringing parity between pension pre- and post-
October 10, 1997, for PBOR pensioners and further improving PBOR pensions based on award
of Group of Ministers in 2006.
With regard to the separate pay commission, the Minister said it had been agreed, and as and
when necessary it would be set up in the future. The government has also accepted the
committee's recommendations regarding raising the pension amount for those disabled or injured
in war.

PLANNING & ECONOMY

Union Budget, 2009
“Aam Aadmi is now the focus of all our programmes and schemes”, declared Finance Minister
Pranab Mukherjee while presenting the Union Budget for 2009-10 in Parliament on June 6, 2009.
He further added that the UPA government has gone for a paradigm shift for making the
development process more inclusive, which involves creating entitlements backed by legal
guarantee to provide basic amenities and opportunities for livelihood to vulnerable sections.
For industry as a whole the Budget turned out to be a mixed bag. While there is cause for
celebration that the Fringe Benefit Tax has been abolished, there is unhappiness over the
Minimum Alternate Tax (MAT) on booked profits being raised from 10 per cent to 15 per cent. As
a first reaction to the disappointment of investors in general, the stock market tanked, with the
BSE benchmark suffering the biggest fall on any Budget day, and in the year too, by plunging
over 869 points.

Highlights

• IT exemption limit raised; Rs 15,000 for senior citizens (65 yrs & above),
• Rs 10,000 for general tax payers and women.
• 10% surcharge on personal income tax scrapped.
• Fringe Benefit Tax, Commodities Transaction Tax abolished.
• Corporate Tax unchanged; Minimum Alternate Tax hiked to 15%.
• Legal services brought under Service Tax net.
• Defence gets Rs 1,41,703 cr, up 34%.
• Cosmetic & plastic surgery become taxable services.
• Rs 3,472 cr for Commonwealth Games.
• Stimulus for print media for another six months.
• Allocation for NREGA up 144%.
• Banks, insurance firms to remain in public sector.
• Unique ID card to citizens in 12-18 months.
• IT returns to be made simpler.
• Allocation for JNNURM up by 87% to Rs 12,887 crore
• Allocation for APDRP surged by 160% to Rs 2,080 crore
• Allocation for NHAI has been raised by 23%
• Allocation for Brihanmumbai Storm water Drainage Project raised to Rs 500 crore from
Rs 200 crore earlier
• Budgetary allocation for higher education sector increased to Rs 9,600 crore.
• Divestment target for year set at Rs 1,120 crore.
• 100% tax exemption to electoral trusts.
• Collegium of commissioners to be setup to look into the cross-border tax issues.
• Subsidized 7% interest schemes for crop loans to continue and incentive for regular
payers who will get loan at 6% interest.
• Major tax-breaks for agro-processing industry.
• Uniform non-promoter public share holding for all listed companies.
• Sharp 13% increase in spending to continue to provide stimulus to economy.
• Fiscal Deficit 6.8% of GDP. Half of it to be met through market borrowings, the rest by
printing notes.
 • Total subsidy bill for 2009-10 is Rs 1,11,276 crore.
• Tax burden on economy comes down to 10.9% of GDP, from 11.6% of GDP.
• Major tax holiday for future oil and gas producers.
• Tax exemptions to IT sector and EOUs extended by one more year.
• Simple deemed income scheme for small and micro enterprises with less than Rs 40 lakh
turnover per annum. They can opt to pay income tax on a fixed 8% of their revenues and
in turn be exempted from maintaining their books.
• New hand-loom clusters to be set up in West Bengal, Tamil Nadu and Rajasthan.
• Transport of goods by Rail to attract Service tax.
• Detailed Budget report is covered in Cover Story section.

Railway Budget, 2009

Mamata Banerjee spent the first couple of minutes of her first Budget speech vehemently arguing
that railway projects should be judged on social rather than economic viability. For the next hour
and a bit she showed that she values political viability more than either. Railway ministers have
traditionally lost no opportunity to do their constituencies and home States a favour. But
Mamata’s third rail budget—she presented two in the NDA’s tenure in 2000 and 2001—
comfortably surpassed all previous efforts at regional partisanship.

It’s not as if her budget was harsh on other—neither passenger fares nor freight rates have been
touched. Not only does her home State, West Bengal, have 181 of the 309 stations identified for
conversion into “Adarsh stations”, there were oodles of other goodies like a rail coach factory, a
huge chunk of new trains and proposed new lines, nursing and medical colleges, and a de-
congestion plan for the Kolkata metro.

Despite some brave talk from Mamata on how well the Railways were bearing up under the strain
imposed by the pay commission and the economic slowdown, the numbers reveal the financial
stress. The operating ratio—which tells you what proportion of traffic receipts get used up in just
keeping the railways running—is up to 92.5% from 75.9% just two years ago, a clear sign that
less and less is available for investing in future assets.

It’s no surprise, therefore, that Mamata asked for and got Rs 15,000 crore as support from the
government’s coffers against the Rs 10,000 crore her predecessor Lalu Prasad had estimated in
the interim budget.

Beyond West Bengal, the budget proposed a revamp of the Tatkal scheme, cutting the advance
period to two days from five, while also reducing the minimum mark-up to Rs 100 from Rs 150
and making it a percentage of the base fare rather than a flat premium.

Highlights

• Tatkal revamped, advance period cut from 5 to 2 days, minimum premium reduced from
Rs 150 to Rs 100.
• 57 new trains, 27 extended, 13 made more frequent, 53 new lines being considered. In
addition, 12 non-stop long distance ‘Duronto’ trains. And AC, seating long-distance Yuva
trains for youth & low income passengers with cheap tickets.
• Double-decker AC inter-city trains.
• Ladies only suburban trains for Delhi, Chennai and Kolkata.
• Rs 25 monthly ‘Izzat’ season ticket for distances up to 100km for poor.
• Student passes to be extended to madrasa students and to Kolkata Metro.
• 50 “world class” stations to be developed with public-private partnership. Also, 50 stations
to have multi-functional complexes with shopping & budget hotels.
• 375 stations to be turned into ‘Adarsh stations’ with drinking water, toilet.
 • On-board infotainment services for Rajdhanis, Shatabdis important distance trains.
• Budget support to railways increased from Rs 10,000 cr to Rs 15,000 cr.

The impact of various populist measures announced by Mamata Banerjee as well as the
economic slowdown on the finances of Indian Railways has forced it to compromise on
investments that it will make during the year for future growth and efficiency. It has pruned the
appropriation to the depreciation reserve fund by Rs 1,675 crore to Rs 5,325 crore in 2009-10,
as against Rs 7,000 crore in 2008-09. The fund is used for replacing aging assets. The
appropriation to capital fund, which boosts the reserves of the corporation, has also been cut
by a whopping Rs 4,322 crore to Rs 642 crore in the current financial year, from Rs 4,965 crore in
2008-09.

However, the corporation decided to increase the dividend to the central government by Rs
768 crore to Rs 5,479 crore, despite a dip of over Rs 3,000 crore in cash surplus on account of a
higher wage bill following implementation of the Sixth Pay Commission award.

The cash surplus of the Railways during the current fiscal is estimated to dip to Rs 14,201 crore,
from Rs 17,400 crore in 2008-09. The investible surplus of the corporation is down by 36% to Rs
8,631 crore in 2009-10, from Rs 13,532 crore in the previous year.

Travel with ‘Izzat’: The scheme aims to provide an opportunity to the poorest of the poor to
travel with dignity. Under the scheme, a uniformly priced monthly season ticket of Rs 25 would be
available free of all surcharges for travel up to 100 km for members of the un-organised sector
with monthly income not exceeding Rs 1500.

‘Duronto’ to beat Rajdhani: For the first time in the history, non-stop train service is being
introduced in India. The non-stop train service 'Duronto' will have AC and non-AC sleepers and
will run between select cities throughout the country. The 12 new non-stop fast trains announced
by Mamata will take less time than even Rajdhani Express to complete their journey.

Ladies special: Mamata proposed to run 'Only Ladies' EMU trains in Delhi, Chennai and Kolkata
on the lines of those in Mumbai during office hours in suburban services. Women RPF personnel
would be deployed for security of women passengers in trains.

List of new trains

1. Vishakhapatnam-Secunderabad-Mumbai Superfast (bi-weekly).
2. Sriganga Nagar-Delhi-Nanded Superfast (weekly)
3. New Jalpaiguri-Sealdah Superfast (tri-weekly)
4. Bangalore-Hubli-Solapur Superfast (tri-weekly)
5. Howrah-Bangalore Superfast (weekly)
6. Pune-Daund-Solapur Superfast (daily)
7. Ranchi-Howrah (3 days via Ghatshila-Kharagpur and 3 days via Asansol); intercity (6 days a
week)
8. Kamakhya-Puri Express (weekly)
9. Jabalpur-Ambikapur Express (tri-weekly)
10. Gandhidham-Howrah Superfast (weekly)
11. Delhi-Sadulpur Express (tri-weekly)
12. Ajmer-Bhopal Express (by integration of 9655/56 Ajmer-Ratlam and 9303/04 Ratlam- Bhopal
express trains) (daily)
13. Bilaspur-Tirunelveli Jn. (Thiruvananthapuram) Superfast (weekly)
14. Mumbai-Karwar Superfast (tri-weekly)
15. Durg-Jaipur Express (weekly)
16. Dibrugarh Town-Chandigarh Express (weekly)
17. Delhi-Farakka Express (bi-weekly)
18. Hazrat Nizmmudin-Bangalore Rajdhani Express (tri-weekly), via Kacheguda
19. New Jalpaiguri-Delhi Express (bi-weekly), via Barauni
20. Mumbai-Varanasi Superfast (daily)
21. Mysore-Yesvantpur Express (daily)
22. Koraput-Rourkela Express (daily) via Rayagada
23. Agra-Ajmer Intercity Superfast (daily)
24. Mumbai-Jodhpur-Bikaner Superfast (bi-weekly)
25. Agra-Lucknow Junction Intercity (daily)
26. Hapa-Tirunelveli Jn Superfast (bi-weekly), via Thiruvananthapuram
27. Gwalior-Bhopal Intercity Express (5 days a week), via Guna
28. Kanyakumari-Rameshwaram Express (tri-weekly), via Madurai
29. Howrah-Haridwar Superfast (5 days a week)
30. Varanasi-Jammu Tawi Superfast (daily)
31. Gorakhpur-Mumbai Superfast (daily)
32. New Delh-Guwahati Rajdhani Express (weekly), via Muzaffarpur
33. Veraval-Mumbai-link service
34. Ranchi-Patna Jan Shatabdi Express (daily)
35. Jhansi-Chhindwara Express (bi-weekly) via Bina-Bhopal
36. Mumbai-Jodhpur Express (weekly)
37. Jamalpur-Gaya Passenger (daily)
38. Jhajha-Patna MEMU (daily)
39. Kanpur-New Delhi Shatabdi Express (6 days a week)
40. Bhopal-Lucknow-Pratapgarh Superfast (weekly)
41. Lucknow-Rae Bareli-Bangalore Superfast (weekly)
42. Shimoga-Bangalore Intercity Express (daily)
43. Madurai-Chennai Express (bi-weekly)
44. Guwahati-New Cooch Behar Express Intercity (daily)
45. Balurghat-New Jalpaiguri Express (daily), via Kishanganj
46. Alipurduar-New Delhi Jalpaiguri Express Intercity (daily), via Siliguri
47. Dharmanagar-Agartala Fast Passenger (daily)
48. Rewari-Phulera Passenger (daily), via Ringus
49. Shoranur-Nilambur Road Passenger (daily)
50. Coimbator-Shoranur Passenger (daily)
51. Mathura-Kasganj Passenger (daily)
52. Farakka-Katwa-Azimganj-Nawadwip Dham Express (daily)
53. Bangalore-Kochuveli Superfast (weekly)
54. Kolkata-Rampurhat Express (daily)
55. New Jalpaiguri-Digha Express (weekly)
56. Purulia-Howrah Express (bi-weekly)
57. Kolkata-Bikaner Express (weekly), via Nagore

India’s population may touch 2 billion by 2101

India’s future population could be much more than what is currently estimated. The latest
demographic projections by the Population Foundation of India (PFI) and the Population
Reference Bureau (PRB), USA, predict that India may have a population of two billion by 2101,
posing huge challenges in terms of distress migration, pressures of the numbers on land,
employment and environment, prolonged poverty and changes in the demographic balance.

The study makes two more alarming conclusions: the population of 60 plus would exceed that of
those aged between 0 and 14 years, leading to substantial future ageing in India by 2051.
Further, Uttar Pradesh, Bihar, Madhya Pradesh and Rajasthan would account for almost half of
the country’s population by 2101. These four States, with their high fertility rate, currently account
for 40 per cent of the country’s numbers, and are characterised by low literacy levels and low
health indicators such as high infant and maternal mortality.

There is, however, a difference between population projections of India by the Registrar General
of India (RGI) and those by the PFI/PRB. Contrary to the RGI’s projection of 1,399 million
population of India by 2026, the PFI/PRB projections indicate 1,464 million by the said year. The
new demographic study puts the country’s population at 1825 million in 2051, reaching up to
2181 (crossing the two billion mark) by 2101.

These differences stem mainly from the assumed total fertility rates (TFRs) in the country’s four
most populous States—UP, Bihar, MP and Rajasthan. Whereas the PFI study concludes that
TFR of 2.1 will be achieved in UP between 2051-56; Bihar (2061-66); MP (2041-46) and in
Rajasthan between 2051-56, the RGI assumes these States would achieve the TFR targets much
earlier.

As per the PFI, India, with the final TFR of 1.85, will achieve two billion population by 2101;
growth will peak in 2081-2086, after which the population decline will start. The population of
Kerala and Tamil Nadu would start declining in 2041-2051; that of Andhra Pradesh and West
Bengal would do so around 2061.

The study adds: “The priority for India should be to contain the unacceptably high numbers of
maternal and infant deaths, improve quality health services for institutional deliveries; meet the
unmet needs of family planning services and focus on adolescents and youth (10 to 34 years) to
make them productive through gender-sensitive education.”

Current account swings to a surplus in March

India’s current account may have swelled to a surplus in the March quarter, but that couldn’t dam
a wider deficit for the 2008-09 fiscal as imports rose and exports fell sharply due to the global
slump.

Latest RBI data shows India’s current account, which captures trade flows, boasting of a surplus
of $4.75 billion during the quarter Jan-March 2009, as against a deficit of $1.5 billion in the year-
ago period, meaning the country has received more dollars from selling goods and services to
foreign countries than it paid to buy them in this period. But the current account deficit for 2008-09
widened to $29.82 billion, or 2.6% of the gross domestic product (GDP), against the previous
year’s $17.03 billion, or 1.5% of GDP.

The capital account, meanwhile, ended in a modest surplus of $9 billion compared to $108 billion
in the previous year. Remittances also grew, but not at the same pace as in the previous year.
India’s balance of payment surplus—the sum of current and capital accounts—saw a sharp drop
to $300 million against $24.99 billion in the previous year driven by dollar outflows due to FII
selling in the stock market and repayment of short-term foreign currency loans by domestic
corporates.

EDUCATION
Three-tier educational tribunal in the offing
The long awaited Educational Tribunal Bill, recommended by the Supreme Court in the TMA Pai
judgement and even by the Law Commission, envisages a three-tier structure to deal with
disputes between students and institutions, teachers and institutions as well as disputes related
to affiliation, unfair means adopted by students in examination and by institutions.

The Bill proposes a National Educational Tribunal (NET) at the top. It will have the power to settle
any dispute between a higher educational institution and any regulatory body except in matters of
recognition. It will also adjudicate any dispute between any two or more statutory regulatory
bodies. NET will also adjudicate any dispute related to matters of affiliation between a higher
educational institution and the affiliating university, where such a university is a Central
Educational Institution.

At the state level will be the State Educational Tribunal (SET). It will have original jurisdiction to
settle any dispute related to matters of affiliation between a higher educational institution and the
affiliating university. SET will also exercise original jurisdiction to adjudicate a dispute related to
any Central Educational Institution in the state. It can call for records and pass orders in any
matter either pending or already decided by any District Educational Tribunal if it feels DET has
overstepped its jurisdiction.

SET will also adjudicate any matter referred it by DET where there is a difference of opinion
between the chairperson and member of DET. Either on a complaint or suo motu, SET at any
stage can transfer any case pending before DET to another DET within the State. SET will
exercise appellate jurisdiction over any matter decided by any DET in the State.

At the lowest level will be DET. It will have the power to deal with grievances expressed by a
teacher or any other employee of a higher educational institution against the management or
governing body, provided the teacher or employee has availed of all remedies available in the
service rules.

Civil courts and High Courts will not entertain matters that concern the educational tribunals.
Chairperson of all tribunals would be judicial officers: a district judge for DET, High Court judge
for SET and Supreme Court judge for NET. Judges at all levels can be either retired or serving.

FOREIGN RELATIONS
India, Japan to work together on climate change
Cementing their strategic ties, India and Japan, on July 2, 2009, agreed to cooperate on pressing
global issues of climate change, disarmament and non-proliferation while moving ahead in
negotiations to stitch a comprehensive economic partnership pact.

External Affairs Minister S.M. Krishna, during his visit to Japan, held wide-ranging discussions
with the Japanese side on a gamut of bilateral relations during the third strategic dialogue he co-
chaired with his counterpart Hirofumi Nakasone.

On the issue of climate change, which they identified as an "important global challenge," India
and Japan hoped that all countries would participate constructively and work towards an
"ambitious" outcome at a crucial meeting on a pact to replace the Kyoto protocol in Copenhagen
later this year. During his talks with Krishna, Nakasone asked India to play a leadership role
"even more positively and in a broader perspective" at the UN-sponsored 'COP 15' meeting on
climate change in December to discuss a new agreement to replace the Kyoto Protocol.

Japan is keen to get India's cooperation on persuading industrialised and emerging countries to
iron out differences over how to fight global warming ahead of the Copenhagen talks. The new
pact, a successor to the 1997 Kyoto protocol, is controversial because key polluters like the USA
and Europe want emerging economies to also help cut global gas emissions.

Prime Minister’s visit to France

The progress on the nuclear front, fight against terrorism, economic ties and science and
technology cooperation were high on agenda during Manmohan Singh’s visit to Paris on July 13-
14, 2009. An agreement on up-gradation of 51 French-made Mirage fighters was also discussed.
The IAF had inducted Mirages into its fleet in the mid-1980s and the upgrade is intended to
increase its service life by another 25 years. The visit also helped in putting the nuclear
agreement with France on fast track.

Prime Minister Singh was the first foreign dignitary to be the Guest of Honour at the Bastille Day
parade on July 14. German President Horst Koehler and Cambodia’s Prime Minister Hun Sen
also attended the parade. Several top foreign dignitaries have attended the French National Day
celebrations in the past but the Indian Prime Minister was the first to be accorded the honour of
being the Chief Guest.

Nearly 400 personnel from the Indian armed forces also participated in the parade in Paris
alongside the men from the French Army, marking the commemoration of Indian soldiers’
participation on French side and in French territory during the two World Wars.

At the parade, the bonhomie between Mr Sarkozy and Mr Singh showed despite the contrast
between their personalities: the flamboyant Sarkozy dressed in dark suit with his stunning wife,
model-cum-singer-turned-first lady Carla Bruni in tow, alongside the genial and soft-spoken Singh
in his trade-mark sky blue turban. The body language that the two leaders shared was an
indication of the importance that they attach to the growing economic and international
engagement between New Delhi and Paris that has seen their heads of governments routinely
visiting each other.

France, an enthusiastic backer of India at 2008’s Nuclear Suppliers Group (NSG) and
International Atomic Energy Association (IAEA) meetings that ended its isolation from the civil
nuclear mainstream, is one of the few countries besides the US and Russia with whom India has
signed a nuclear cooperation agreement. Both countries continued to hold joint naval exercises
even in the aftermath of the nuclear test and their level of comfort came to the fore when France
was selected as the Indian Air Force’s first partner for joint fighter level exercises in 2003. Trade,
cultural and people-to-people contacts are areas both sides are working on and French
companies have a long presence in India.

India de-links terror from composite dialogue

After three hours of hard-nosed negotiations on July 16, 2009, India and Pakistan came out with
a joint statement in which New Delhi appears to have bent somewhat on its earlier steadfast
position of keeping the focus on terror. The statement, issued after the meeting between Prime
Minister Manmohan Singh and his Pakistani counterpart Yousuf Raza Gilani, on the sidelines of
the NAM Summit, recognised that terrorism was the “main threat to both countries’’ but delinked
the menace from the resumption of the composite dialogue process.

In fact, India even agreed with the Pakistani formulation that it is also a victim of terror. Both
reaffirmed their resolve to cooperate on this issue and share “real-time, credible and actionable
information on any future terror attacks”.

On its part, Pakistan conceded some ground to the Indian negotiating team by dropping any
reference to Kashmir though there was an implicit mention to this issue in the statement which
said, “Prime Minister Singh said that India is ready to discuss all issues with Pakistan, including
all outstanding ones.”

Later addressing a press conference, Manmohan Singh sought to downplay the reference to
delinking terror from the dialogue process, saying New Delhi’s position on the issue remained
unchanged. “Pakistan wants the dialogue to begin. We said it can’t commence unless action is
taken against those who masterminded the Mumbai terror attack,’’ he underlined.

Asserting that the joint statement could not be termed as surrender by India, the Mr Singh said
India wanted an assurance that acts like Mumbai would not recur. He emphasised that the India-
Pakistan normalisation process would fail to move ahead if no action was taken by Pakistan to
check terrorism emanating from its soil

However, he reiterated that India could choose its friends but not neighbours. “Dialogue is the
only way forward but the composite dialogue has its history…we need to think over it.’’ There was
no decision on the nature of dialogue and the issue would be sorted out by the foreign
secretaries.

Pakistan scored over India by muscling in a mention to the troubled Balochistan in the statement.
“Prime Minister Gilani mentioned that Pakistan has some information on threats in Balochistan
and other areas,” the statement said. Islamabad has persistently accused India of fomenting
trouble in its largest province in response to New Delhi’s charge that the Pakistani territory was
being used for launching terror attacks against India.
Many in the Indian diplomatic establishment were sceptical about the language of the joint
statement, which clearly gave an impression that India had diluted its tough stand on the issue of
terrorism, but Mr Singh pushed through his agenda in keeping with his stand that good
neighbourly relation between India and Pakistan presented a win-win situation for both of them.

Amid Pakistan’s attempt to cash in on the reference to Balochistan in the India-Pakistan joint
statement, Afghanistan dismissed Islamabad’s charge that India was backing insurgency in
Pakistan’s restive province. Visiting Afghanistan Foreign Minister Rangin Dadfar Spanta pointed
out that this was not a new claim by Pakistan. India had never used the Afghanistan territory
against Pakistan. Islamabad’s claim of India’s involvement in Balochistan was absolutely false, he
said.

Pak dossier owns up to two more 26/11 attackers

Islamabad has acknowledged that besides Ajmal Kasab, two more of the 10 terrorists who
attacked Mumbai on 26/11—Imran Babar and Abdur Rahman Chota—were Pakistani nationals.
The acknowledgment is part of the 26/11 dossier Pakistan handed over to India in July 2009,
which says that the nationality of Babar and Abdur Rahman were determined on the basis of DNA
samples.

This marked the first time Pakistan accepted that the attackers of Mumbai, Kasab included, were
its citizens.

Initially, Pakistan had contested Kasab’s disclosure about his being a citizen of village Faridkot in
Okara district. Though investigation by a television channel and, later, statements of Kasab’s kin
forced them to accept the fact, it is the first time the acknowledgement has been made in a
document handed over to India.

Pak dossier names 10 LeT foot soldiers, including Amjid Khan and Muhammad Usman, whose
involvement in the 26/11 attacks is ‘established beyond reasonable doubt’. It says evidence
‘connects’ Zaki-ur-Rehman Lakhvi, al-Qama and Zarar Shah with the attack. India sees the three
as the men who planned the terror strike.

Imran Babar, one of the two terrorists that Islamabad acknowledged as a Pakistani citizen, called
up a TV channel after landing in Mumbai, posing as a member of Deccan Mujahideen—a
concoction meant to mask the involvement of Pakistani terrorists belonging to Lashkare-Taiba.
Babar had grabbed the mobile phone of Holtzberg Gavriel, a resident of Nariman House. Gavriel
was among those who were killed by Babar and his accomplice at Nariman House.

Abdur Rahman Chota had headed for Oberoi Trident Hotel where he snatched the phone of Rita
Sanjay Agarwal of Malabar Hill, Mumbai. Rita was later killed by the terrorists. Besides matching
the DNA samples, the identities of Kasab, Babar and Abdur Rahman was established also with
the help of records of families and schools, statements of family members and voter list. The
finding about the nationalities of the three terrorists also validates the statement given by Kasab,
the sole attacker to have been nabbed by Mumbai police on the fateful night.

Visit of Secretary of US State Hillary

On her two-day visit to New Delhi, in July 20, 2009, US Secretary of State Hillary Clinton drove
straight from the airport to ITC Green, an energy-efficient building in Gurgaon, to make a case
that India could grow without hurting the environment. Besides environment issues she discussed
defence sales, civil nuclear issues and NPT during her various meetings with the Indian
establishment. But, she made climate change her top priority.
On climate change, India firmly reiterated its position that it was not in a position to take on legally
binding targets on reducing emissions. This statement came even as US secretary of state Hillary
Clinton accepted that developed countries had made “mistakes”, but that all countries need to
take steps to reduce emissions. Ms Clinton was speaking at the ITC Green Building in Gurgaon
on the first day of the Delhi leg of her India visit.

India stressed that its position on the on-going climate change agreement negotiations is “clear,
credible and consistent”. “We are fully alive to our global responsibilities as well. We have done
detailed modelling, the results of which are being released very soon. The results are
unambiguous. Even with 8-9% GDP growth every year for the next decade or two, our per capita
emissions will be well below that of developed country averages. There is simply no case for the
pressure that we, who have among the lowest emissions per capita, face to actually reduce
emissions. As if this pressure was not enough, we also face the threat of carbon tariffs on our
exports to countries such as yours,” said Jairam Ramesh, Union Minister for Environment.

Reaching out, Ms Clinton reassured that “the US does not and will not do anything that will limit
India’s economic progress. The challenge is to create a global framework that recognises the
different needs and responsibilities of developed and developing countries alike.” Mr Ramesh
reiterated that “India’s position is that we are simply not in a position to take on legally binding
emissions reductions targets”.

India and the US have agreed on “concrete partnerships” in the area of energy efficiency. “I want
to say that both sides have agreed on the need of partnerships, concrete partnerships, on
projects in various fields like energy efficiency, solar energy, biomass, energy-efficient buildings
of the type that you are seeing here today. We have made a good beginning. We have taken a
small step today. We will continue our engagements in multilateral forums. But we will also have
bilateral engagements,” Mr Ramesh said.

Ahead of the Copenhagen conference later in 2009, India and the US agreed upon the need for a
"fair" agreement on climate change and discussed ways of collaborating in the fields of
environmental planning, regulation, management and forestry.

Ms Hillary assured that the US would not do anything to limit India's economic growth and was
aware of the concerns of the developing countries that needed to eradicate poverty. She,
however, said poverty eradication was possible with sustainable development.

India listed three areas of cooperation with the US in the area of climate change—research
through an Indo-US Foundation for Climate Change; collaboration in environment planning,
regulation and management, and building institutional capacity for continuing research on the
subject.

During her visit to Mumbai, Hillary Clinton paid homage to the victims who lost their lives in the
terrorist attacks. In a symbolic gesture she stayed at Taj Hotel Mumbai. Among those who met
Clinton included 13 staff members of the Taj and Oberoi hotels who were injured in the attack,
including Taj General Manager Karambir Kang who lost his wife and children in the terror strike.

She sought action against the ‘syndicate of terrorism’ in Pakistan and the perpetrators of the
Mumbai terror attacks, but defended Islamabad’s commitment to countering terror. Ms Clinton
expressed faith in the Pakistani establishment saying that there has been an ‘evolving
commitment’ on Islamabad’s part to take action against terrorism and recognition within the
country that terrorists are an internal threat.

“Over the last six months, in the course of working with the government of Pakistan, we believe
there is a commitment to fighting terrorism that permeates the entire government. We are
watching it and hope they will make progress against the syndicate of terrorism, including the Al
Qaeda, Taliban and the other groups,” she said.

In Delhi, Ms Clinton, apart from calling on Prime Minister Manmohan Singh, met UPA
Chairperson Sonia Gandhi and Leader of the Opposition L.K. Advani. She held bilateral talks with
External Affairs Minister S.M. Krishna.
During her visit the two countries signed several major accords, including an end-use monitoring
agreement to bolster high-end arms sales and another on space launches.

She assured India that the Obama administration will honour the Indo-US nuclear deal, in letter
and spirit. Dispelling all misgivings, she promised not to block transfer of nuclear technology to
India, nor deny enrichment and reprocessing technology (ENR) to India. She also announced that
Mr Manmohan Singh would be the first State guest at the Obama White House on November 24,
2009.

India and USA identified two nuclear sites which will kick off US nuclear business in India, but due
to the fact that the Indian government would have to announce it in Parliament first, Krishna could
not take credit for the announcement. The sites are in Andhra Pradesh and Gujarat. But for those
sites to draw in US businesses — GE-Hitachi and Toshiba-Westinghouse are looking at jobs,
investment, big business — India will first have to sign the IAEA’s liability convention that will
enable US companies to do nuclear business here. Clinton gently nudged the Indian government
on this saying the next step would be for India to sign the liability act on nuclear damage.

India makes fresh bid for UNSC seat

India launched a renewed campaign for a seat in the UN Security Council using the forum of the
G-8 Summit. In an unusually feisty article written for the compendium of the G-8, Prime Minister
Manmohan Singh said, “The Security Council has not changed at all and its present structure
poses serious problems of legitimacy. The system of two-tiered membership, which gives a veto
to the five permanent members—the nations that emerged victorious after the Second World War
—is clearly anachronistic.”

In his article, Mr Manmohan Singh made a strong case for reforming all international institutions,
from the Security Council to institutions of global and financial governance. “The problems faced
by the institutions of governance charged with handling the financial system are also relevant for
other international institutions dealing with political and security issues, trade, climate change,
etc. They need to update structures and upgrade work methods; reform decision-making and
ensure effective delivery,” he said.

JAMMU & KASHMIR

Governor gives clean chit to Omar, tells him to continue
J&K Governor N.N. Vohra has conveyed to Chief Minister Omar Abdullah that, based on the
information supplied to him by the Union Home Ministry, there was no basis for him to resign.
Omar had, on July 28, 2009, submitted his resignation to the Governor following the PDP
allegations in the Assembly of his involvement in the infamous sex scandal of 2006.

The Chief Minister in his meeting with the Governor had requested the Governor to inquire, on a
time-bound basis, into the allegations made against his moral character. Omar had requested him
to accept his resignation immediately in case the Governor was satisfied that there was any basis
therein.

The rejection of the Chief Minister’s resignation set at rest speculations and uncertainty that had
prevailed in the political circles. Omar had himself made it clear that unless any final decision was
taken there was no lowering of guard on the functioning of the government.

Srinagar sex scandal had made headlines in 2006. CBI filed charge sheet against 36 people in
the case, but the investigations threw up a huge list of people who needed to be questioned. The
case, being heard by a division bench, passed its verdict in October 2007 after CBI “concluded”
investigations and submitted its 4,000-page findings. The two judges—Justices B A Kirmani and
Hakeem Imtiaz Hussain—were unanimous in terming investigation lax and deficient and asked
CBI why certain influential persons, who had been named and identified by witnesses, were left
out.
LAW POINT
Delhi HC says homosexuality not a crime
On July 2, 2009, India took a giant, albeit belated, step towards globalization when the Delhi High
Court delivered a historic judgement to amend a 149-year-old colonial-era law—Section 377 of
the IPC—and decriminalize private consensual sex between adults of the same sex. It is the
biggest victory yet for gay rights and a major milestone in the country’s social evolution. India has
become the 127th country to take the guilt out of homosexuality.

In a judgement that has aroused strong reactions from religious and political groups, the court
declared that Section 377 IPC—where it ‘‘criminalized consensual sexual acts of adults in
private’’—violated fundamental rights to personal liberty (Article 21 of the Constitution), equality
(Article 14) and prohibition of discrimination (Article 15).

A bench comprising Chief Justice A.P. Shah and Justice S. Muralidhar clarified that the
provisions of Section 377, enacted in 1860 to deal with an unspecified range of ‘‘unnatural
offences’’, would hereafter be restricted to non-consensual penile ‘‘non-vaginal sex’’ (rape by a
homosexual) and ‘‘penile non-vaginal sex involving minors’’ (paedophilia).

Upholding the petition filed by Naz Foundation, the court ruled: ‘‘Indian constitutional law does not
permit the statutory criminal law to be held captive by the popular misconceptions of who the
LGBTs (lesbians, gays, bisexuals and trans-genders) are. It cannot be forgotten that
discrimination is antithesis of equality and that it is the recognition of equality which will foster the
dignity of every individual.’’

LEGISLATION
Education Bill
Seven years after Parliament approved an amendment to the Constitution making education for
children between the age of six and 14 a fundamental right, the apex legislative body has passed
the Right of Children to Free and Compulsory Education Bill, 2009.

Though an initial draft of the legislation had been prepared by the NDA government, progress
was slow with early elections. With the BJP-led alliance voted out, the task of honouring the
commitment was left to the UPA government. A draft law was prepared by a committee headed
by the current Human Resource Development Minister Kapil Sibal.

Once the Right of Children to Free and Compulsory Education Bill becomes an Act, the 86th
Amendment to the Constitution will be notified. As of now, free and compulsory education is part
of the Directive Principles of State Policy.

Both the Centre and States will be responsible for the finances. The Centre will prepare the
capital and recurring expenditure and provide it as grants-in-aid to each State from time to time.
The share between the Centre and States will be decided later.

The cost to the exchequer will be nearly Rs 12,000 crore every year. Even private, unaided
schools will get assistance, as 25% of their seats will have to be reserved for poor children in the
neighbourhood. However, the Bill is clear that schools which got land at a concessional rate and
were anyway obliged to give reservation to 25% poor children in the neighbourhood will not be
compensated. Compensation will be based on per-child expenditure by government on
education. Currently, per-child cost borne by government is about Rs 3,000 per annum.

The legislation has a host of features that stress not only on reaching out to every child in the 6-
14 age group, but also on quality and accountability of the State and education system. To
ensure that the law gets effectively implemented, the Bill has provisions that prohibits teachers
from undertaking private tuition and not letting them being used for non-educational purposes. To
ensure that parents have equal stake in the system, the Bill provides for school management
committees in all government and aided schools. Women have been given 50% reservation in the
school committees. Each committee will monitor and oversee the working of the school, manage
its assets and ensure quality.

Every State government would have to compulsorily define and set up neighbourhood schools to
educate every child aged six to 14 years. For this, the States will receive financial assistance from
the Centre. The Centre has left it to States to define “disadvantaged groups”, mandating the
inclusion of disabled children in this category.

The law puts the onus on States to notify its historic requirements—no child can be expelled from
school or be put through any exam, not even class V and VIII boards; no child can be denied
admission to any school for lack of birth or transfer certificate; no capitation fee can be charged.
Also, the States will have to ensure no non-teaching work is given to teachers and quality
teachers are recruited; untrained teachers would have to upgrade themselves in five years.

For the first time, quality of schools has been mandated under law, with the government listing
minimum infrastructure requirements on the part of schools. It has asked the States to identify
schools that don’t conform, asking them to do so in three years or face de-recognition.

There is also a provision that teacher vacancy should never exceed more than 10% of the total
strength. To monitor implementation of the law, the Bill proposes a National Advisory Council at
the Centre and State advisory council in each State capital. In case of complaints of non-
compliance, the initial complaint would go to local authority and should be resolved within 90
days.

Nuclear Bill on civil liability

The proposed bill on nuclear civil liability—very high on the US priority list with India—to cover
accidents in nuclear installations will limit monetary accountability of the operator to Rs 300 crore,
while damages in excess will be borne by the Indian government.

The limited liability clause could bring cheer to multinationals who are looking at billions of dollars
worth of business in India. Fixing the liability on operators is important to US firms who are
looking to supply nuclear reactors at Andhra Pradesh and Gujarat as otherwise they cannot avail
of insurance. With operators, not suppliers, responsible for liability commitments, US firms can go
ahead with their business contracts.

The proposed Bill, besides limiting the liability of the operator, gives flexibility to central
government to decrease compensation amount on the operator. But in what could be of
significance, the Bill states that in each case where the government decides to decrease the
liability, it “shall not be less than Rs 100 crore”. The amount of liability shall not include any
interest or cost of proceedings.

The bill debars civil courts from entertaining any suit or proceedings in respect of any matter
which the claims commissioner is empowered to adjudicate.

The setting up of a six-member nuclear damage commission has been proposed to look into the
claims. The chairperson and members of the commission shall be appointed by the central
government on the recommendation of a three-member committee headed by the cabinet
secretary and having secretaries from the department of atomic energy and the ministry of law as
the other two members.

The chairperson of the commission will be a person who will be qualified to be a judge of a High
Court.

POLITICAL
No dilution in foreign policy, says Manmohan
Prime Minister Manmohan Singh, July 17, 2009, had difficulties in selling the idea of an
engagement with Pakistan where the action on terror was delinked from the composite dialogue
process. He claimed that there was no dilution on India’s stand on cross border terrorism and that
‘meaningful dialogue’ with Pakistan would depend on steps taken by Islamabad to end cross
border terrorism.

BJP leader Arun Jaitley, during his clarification, had pointed out that India’s consistent position on
cross-border terrorism and use of terms like State-sponsored terrorism were at variance with
what is stated in the joint statement on delinking terror issues from the composite dialogue
process. He further pointed out that India’s national commitment is going to be the joint statement
and not other statements.
The Indo-Pak joint statement said that “action on terrorism should not be linked to the composite
dialogue process and these should not be bracketed.”’ This is followed by a line that says India is
“ready to discuss all issues with Pakistan, including all outstanding issues.”

The reference to Baluchistan in the joint statement also invited criticism as Pakistan for long has
accused India of fomenting trouble. There is acknowledgment that New Delhi’s concession to
Pakistan will enable it to claim parity with India as a terror victim.

Mr Singh in a statement in both Houses of Parliament maintained that a “meaningful dialogue”

would depend on Islamabad fulfilling its pledge on terrorism “in letter and spirit”. “It has been and
remains our consistent position that the starting point of any meaningful dialogue with Pakistan is
a fulfillment of their commitment, in letter and spirit, not to allow their territory to be used in any
manner for terrorist activities against India,’’ he said.

The Prime Minister further said that India would take the call on broadening the dialogue with
Pakistan. “Whether, when and in what form we broaden the dialogue with Pakistan will depend on
future developments,’’ he said, and added that the foreign secretaries would meet often and
report to the Foreign Ministers who will meet on the sidelines of the United Nations General
Assembly.

Mr Singh further maintained that he got an assurance from Mr Gilani on bringing the perpetrators
of the Mumbai terror attack to justice and that he had been told that there is growing consensus
within Pakistan against the terror infrastructure.

Invoking his predecessor Atal Behari Vajpayee, Prime Minister Manmohan Singh, on July 29,
2009, silenced the critics of his recent foreign policy initiatives in the Opposition, asserting that
there was no dilution in India’s stand on terror while strongly pitching for remaining engaged with
Pakistan in the larger interest of peace in South Asia.

Setting at rest fears that India had capitulated to Pakistan by agreeing to delink terror from the
composite dialogue process, the Mr Singh explained ‘’this is not correct. The joint statement
emphasised that action on terrorism cannot be linked to dialogue. Pakistan knows very well that
action on terror is an absolute and compelling imperative that does not depend on the resumption
of dialogue.’’

On the controversial reference to Balochistan in the joint statement, he said his Pakistani
counterpart Yousaf Raza Gilani raised the issue during their Sharm-el Sheikh meeting. “I told him
we are willing to discuss all these issue because we know we are doing nothing wrong. I told PM
Gilani that our conduct is an open book.”

Underlining that dialogue was the best way to move forward, he asserted that India was not
diluting its resolve to defeat terrorism by talking to any country. “Unless we talk directly talk to
Pakistan, we will have to rely on third parties to do so,” a route which has its own limitations.

In this context, he cited the example of Vajpayee, recalling how his predecessor demonstrated
political courage of visiting Lahore in 1999, which was followed by the Kargil conflict, and the
hijacking of an Indian Airlines plane to Kandahar. Still Vajpayee invited then Pakistan Pervez
Musharraf to Pakistan in July 2001 and tried to make peace.

Noting that the global scenario was changing fast, he narrated how the US and Iran had also
come to the negotiating table after 30 years of hostilities. “Unless we want to go to war with
Pakistan, dialogue is the only way out,” he added.

SCANDALS
R.K. Anand is guilty: SC
Talking tough on the deteriorating professional standards among lawyers, the Supreme Court
upheld the punishment awarded to the noted criminal lawyer R.K. Anand for influencing a key
witness in the BMW hit-and-run case. The court asked the Bar Council of India and the Bar
Councils of the States to take remedial measures for restoration of the professional standards
among lawyers for proper dispensation of criminal justice system in the country.

Dismissing the appeal of Anand, a bench comprising Justice B.N. Agrawal, Justice G.S. Singhvi
and Justice Aftab Alam said, “the sting recordings were rightly made the basis of conviction and
the irresistible conclusion is that the conviction of R.K. Anand for contempt of court is proper legal
and valid calling for no interference”.

The court sought within two months a reply from Anand as to why his punishment should not be
enhanced which may include a jail term and extending of his period of prohibition from
appearance in the Delhi High Court and its sub-ordinate courts. “He does not show any remorse
for his gross misdemeanour and instead tries to take on the High Court by defying its authority,”
the bench said entertaining the plea of enhancement of Anand’s punishment in the case.

The bench, however, allowed the appeal of special public prosecutor I.U. Khan who was
convicted for criminal contempt for colluding with the defence in the case. The court also set
aside the fine slapped on Khan and asked the full court of the Delhi High Court to consider the
issue of stripping of Khan’s status of a senior advocate.

The Delhi High Court, on August 21, 2008, had prohibited both Anand and Khan by way of
punishment, from appearing before it and its sub-ordinate courts for a period of four months. It,
however, left them free to carry on their other professional work, such as consultations, advises,
conferences, opinion etc. It had also said the both Anand and Khan had forfeited their right to be
designated as senior advocates and recommended to the full court to divest them of the honour.

TERRORISM; LAW & ORDER

ISI spreading terrorism in India, says US
A top US military strategist has affirmed that Pakistan has been fomenting terrorism in India and
Afghanistan, endorsing New Delhi’s and the Indian Army’s long-held view at a time when the two
neighbours are sparring over the issue. The damning public US indictment of Pakistan’s use of
terrorism came from US Admiral Mike Mullen, who told the Arabic television network Al Jazeera,
ahead of his meeting with General Deepak Kapoor, that in the long run the ISI has to change its
strategic thrust, which has been to foment chaotic activity in its border countries.

When the surprised anchor asked, ‘‘What do you mean when you say the ISI has had a strategic
thrust to foment chaos in bordering countries?’’ Mullen did not mince words. ‘‘What I mean is that
they have clearly focused on support of ... historically, of militant organizations both east and
west. I mean that’s been a focus of theirs in Kashmir, historically, as well as in FATA. And I
think ... that fundamentally has to change.’’

Mullen’s observations are critical because Pakistan has lately taken to accusing India of
fomenting insurgency in Balochistan and even backing the Taliban to offset its indictment in
Kashmir, charges that have been scoffed at in both New Delhi and Washington. The prevailing
Pakistani narrative, encouraged by some of its high officials, is that India and Afghanistan are in
cahoots with Washington in destabilizing Pakistan, including the use of Pakistan’s own proxy,
Taliban, against it.

Islamabad has also complained repeatedly to the US about the strong Indian influence in
Afghanistan where Pakistan is now largely despised, except in Taliban strongholds. There is
palpable agitation in Pakistan over closer military ties between New Delhi and Washington, even
though many in India itself are still leery and distrustful about the US.

Kasab confesses, names Pak masters

Springing a surprise on the 65th day of 26/11 attack trial, lone surviving Pakistani terrorist
Mohammad Ajmal Kasab pleaded guilty before a special court on the charges of executing the
terror strikes in Mumbai along with his accomplices, that claimed over 180 lives. He followed up
his confession with a plea for an early sentence.

22-year-old Kasab, who had earlier backed off from his police confession admitting his role in the
Mumbai mayhem stating that it had been made under duress, confessed before the court mid-
way through the hearing, admittedly upon discovering that Islamabad had accepted his Pakistani
nationality. He confirmed to the judge that that he was not confessing under duress.

Kasab’s confession began right from his journey from Karachi on the Lashker-e-Taiba-
orchestrated terror mission and narrated the entire sequence of events leading up to Mumbai
carnage, including terror training of the attackers at Pakistani camps, their boarding the rogue
ship Al Husseini from Pakistani waters, hijacking an Indian vessel midsea and then landing on the
Mumbai coast in a boat along with nine other terrorists. Importantly, he claimed that an Indian
named Abu Jindal had taught Hindi to the Mumbai attackers during their training in Pakistan.

Kasab, in his confession, described in detail how the 10-member LeT attack team split into
smaller groups after landing in Mumbai, with he getting paired with terrorist Abu Ismail, and the
two went on to fire indiscriminately at the CST station, before proceeding to Cama Hospital, killing
ATS chief and Mumbai top cops Vijay Salaskar and Ashok Kamte, and then driving away to
Girgaum Chowpatty.

Kasab’s sudden confession came as a complete surprise to the prosecution. Special public
prosecutor admitted he was “surprised” at the “unexpected” confession, but added nevertheless
that it had come has a big victory for the prosecution. Even Judge Tahiliyani seemed to have
been taken aback by Kasab’s decision to plead guilty and called lawyers from both sides to figure
out the significance of the under-trial’s statement.

Pakistan, however, questioned the “quality” of Kasab’s confessions. “They (confessions) are no
evidences. These were provided by a person who is behind the bars. We cannot crackdown on
people based on his statements,” Pakistan’s Defence Minister told a private TV channel. The
statement has raised questions about Pakistan’s sincerity.

Maoists plan to take battle to new fields

If the Centre has its action plan ready to deal with Maoists, the Red ultras have a counter-plan in
place which talks about expanding their “guerrilla war to new areas” to “disperse the enemy force
(security personnel) over a sufficiently wider area”.

Taking note of what Home Ministry has planned to counter them, the politburo of CPI (Maoist)—
an umbrella organisation of naxal outfits in the country—in its meeting on June 12, 2009 came
out with a detailed plan, asking its armed wing, People Liberation of Guerrilla Army (PLGA), to
carry out “tactical counter-offensives” keeping in mind strengths and weaknesses of government
forces.

A copy of the naxals’ plan was seized by security agencies during operations in Jharkhand,
Chhattisgarh and Orissa. It explains how the ultras are fanning out to different States to deviate
police and paramilitary forces from Abhujmaad—an area comprising nearly 4,000 sq km of dense
forest in Chhattisgarh, considered to be the Maoists’ safest base.

Though the politburo considered government forces to be “superior”, it noted that that it would be
difficult for the Centre to send enough forces required by each state in near future as raising of
central forces would take time. “Keeping this in mind, we have to further aggravate the situation
and create more difficulties for the enemy (security) forces by expanding our guerrilla war to new
areas, on the one hand, and intensify the mass resistance in existing areas so as to disperse the
enemy forces over a sufficiently wider area,” the Maoists’ politburo said. Realising that any
mistake on their part would be utilised by government forces to isolate them, the politburo has
issued certain dos and don’ts for its cadre.

Mumbai blasts case

A special court set up under the Prevention of Terrorism Act (POTA) has found three persons
guilty of carrying out two bomb blasts at Zaveri Bazaar and the Gateway of India in Mumbai on
August 25, 2003 and has sentenced them to death.

Judge M.R. Puranik of the special court found the three—Hanif Sayyed, 46, his wife Fahmeeda,
43, and Ashrat Ansari, 32—guilty. Three other persons had been let off earlier by the court. One
of the three, the daughter of the Sayyed couple who was a minor at the time of the incident, was
made an approver in the case. This is said to be the first instance of a couple being found guilty
under POTA. The two have another daughter who was four years old at the time of the incident.

The blasts claimed the lives of 52 persons injured 184 others. According to the prosecution, the
trio was responsible for attempting to set off a series of bomb blasts across Mumbai in retaliation
for the 2002 post-Godhra riots in Gujarat. They were part of an outfit called the Gujarat Revenge
Force formed to carry out the attacks.

Apart from the blasts at Gateway of India and the Zaveri Bazaar, the three had allegedly planted
explosives at the Santa Cruz Export Processing Zone in December 2002 and in a BEST bus
some weeks before the deadly blasts. While the bomb at SEEPZ was defused, the blast in the
bus claimed two lives.

Investigators probing the blasts had first picked up Ansari whose interrogation led them to the
Sayyed couple and their daughter. Two others, Rizwan Ladoowala and Hassan Batterywala, who
were also arrested in connection with the case, were let off following an order of the Supreme
Court in 2008. According to the prosecution a third accused Nisar Ahmed, who was the brain
behind the blasts, was killed in an encounter shortly after the others were arrested.

Pak admits LeT hand in Mumbai attack

Pakistan has finally admitted the complicity of Lashker e Taiba in the 26/11 terror strikes on
Mumbai and has filed a charge-sheet against the plotters of the attack.

The second and supplementary charge-sheet in the 26/11 case, filed by the Pakistani
investigating authorities in the Adiala court, names five LeT operatives, including operations chief
Zaki-ur-Rehman Lakhvi and communications head Zarar Shah, as accused in planning and
launching the Mumbai strikes. The five—Lakhvi, Shah, Abul Al Qama, Shahid Jamir Riaz and
Hamad Amin Sadiq—will be tried in the anti-terror court in the garrison city of Rawalpindi. The
trial will held in camera within the high-security Adiala Jail for security reasons.

The supplementary charge-sheet came close on the heels of Pakistan’s admission in a fresh 36-
page dossier submitted to India, that LeT indeed was the terror outfit that had launched the daring
attack on November 2008. This was after investigations by Pakistan’s Federal Investigation
Agency (FIA) confirmed the findings of the Indian probe linking LeT bosses in Pakistan to the
26/11 mayhem. While the latest charge-sheet names Zaki-ur-Rehman Lakhvi as the main
mastermind, Zarar Shah is described as the leader in charge of LeT’s communications and Ajmal
Amir Kasab identified as a Pakistani national.

CURRENT INTERNATIONAL AFFAIRS

AFGHANISTAN
US launches biggest operation against Afghan Taliban
On July 2, 2009, thousands of US marines stormed deep into Taliban territory in an Afghan river
valley, launching the biggest military offensive of Barack Obama’s presidency. The marines said
that Operation Khanjar, or Strike of the Sword, will be decisive and is intended to seize virtually
the entire lower Helmand River valley, the heartland of the Taliban insurgency and the world’s
biggest opium poppy producing region.

The Taliban has vowed to fight back. “Thousands of Taliban mujahideen are ready to fight US
troops,” Mullah Hayat Khan, a senior Taliban commander, said. Meanwhile, Pakistan’s army
deployed more troops to a stretch of the Afghan border to stop Taliban militants fleeing the major
US offensive in Afghanistan.

CHINA
Uighur unrest
China faced its worst unrest in decades in July 2009 when tensions between the dominant Han
Chinese and the Turkic-speaking, Muslim Uighurs descended into violence in the regional capital
of Urumqi. Nearly 200 people died in the unrest. Chinese officials said that police killed 12 people
during July 5 rioting—a rare acknowledgment by the government that security forces opened fire
in the worst ethnic clashes to hit the region in decades.

The chairman of the Standing Committee of the Xinjiang Regional People's Congress blamed the
riots on "three forces"—extremism, separatism, and terrorism—both at home and abroad. Eligen
Imibakhi, the top legislator in Xinjiang, said authorities will speed up local legislation against
separatism in the western region that has a long-running independence movement by minority
Uighurs. He added that the public's lack of understanding about laws is also an "urgent problem,"
and the government plans to distribute legal booklets in ethnic minority languages to farmers and
herdsmen across the region.

The violence began when police in Urumqi intervened at a peaceful protest by Uighurs, who went
on a rampage, smashing windows, burning cars and beating Han Chinese. Two days later,
vigilante groups of Han took to the streets and attacked Uighurs.

Even as additional security personnel and machinery poured into Urumqi, the capital of western
Xinjiang province, the Chinese foreign ministry got into action asking several countries, including
Pakistan, to prove their friendship by taking a stand on the issue. Beijing wants several countries
to unearth the links between their citizens and the World Uighur Congress, which Beijing claims is
behind the violence in Urumqi. The government had earlier issued a white paper, which claimed
that several Xinjiang terrorists were trained in training bases in Pakistan.

A worried Hu Jintao, President of China, left the G-8 summit in Italy and rushed back to Beijing as
it dawned on Chinese authorities that the Urumqi violence might set off a chain reaction and
eventually affect the party position.

NIGERIA
Troops rout ‘Taliban’, kill 200
On July 30, 2009, Nigerian forces put Islamist extremists to fight in a brutal all-out assault on their
northern stronghold after an uprising led to clashes that have left hundreds dead. Nigerian troops
raided the Islamists headquarters in the northern city of Maiduguri, killing some 200 followers of
the self-styled Taliban sect, along with its deputy leader.
Maiduguri has seen the worst of the unrest in northern Nigeria which started in nearby Bauchi
State. At least 600 people have been killed in the clashes in Borno and three other northern
States, according to figures from police and witnesses.

Boko Haram, also called ‘Nigerian Taliban’, is a sect led by Mohammed Yusuf, an Islamic scholar
who wants sharia law across Nigeria. Based in Maiduguri, his followers include former university
lecturers and students as well as illiterate, jobless youths. Mohammed Yusuf is in his mid-30s and
has considerable wealth. His followers say he was educated in Iran.

Boko Haram means “western education is sinful” in Hausa language. Boko Haram followers pray
in separate mosques and believe their wives should not be seen by any men other than
themselves Nigeria has equal numbers of Christians and Muslims. In 2002, 215 died in rioting in
Kaduna after a newspaper article suggested Prophet Mohammad would have married a beauty
queen at a Miss World contest held in Abuja. A protest against Danish cartoons of the Prophet in
2006 sparked riots, killing 157.

PAKISTAN
Emergency was unconstitutional: SC
In a landmark judgement, the Pakistan Supreme Court on July 10, 2009, declared as illegal and
unconstitutional the emergency imposed on November 3, 2007, by former President Gen Pervez
Musharraf and all his subsequent actions, including sacking of 60 judges.

The judgement, which has far reaching legal and political implications, termed Musharraf a
“usurper” whose actions were subversive of the Constitution. The imposition of provisional
Constitution order (PCO), under which Musharraf purged the judiciary and packed it with pliant
judges, was also declared unconstitutional.

In a significant move, the apex court allowed protection to some of Musharraf's actions, including
holding of general elections, oath administered by Justice Dogar to President Asif Zardari and the
ordinance creating command and control authority for security and safety of country's nuclear
assets.

Prior to announcing the judgement delivered by a 14-judge bench, Chief Justice Iftikhar Chaudhry
declared that the court was looking forward to a kind of verdict which should not be disruptive.
“Huge unconstitutionality and illegality had taken place under Musharraf's emergency,” he
observed, adding: “But we have to be very careful in order not to rock the boat and destroy the
democratic system.”

The court also declared as illegal the action of the present PPP government to enhance the
number of judges of the Supreme Court from 17 to 29 through the Finance Bill that contained the
budgetary proposals in June 2008. The creation of Islamabad High Court was also declared
unconstitutional as this step required a Constitutional amendment by Parliament and not through
the amendment introduced by Musharraf as the army chief.

The judgement was widely acclaimed across the country and people raised slogans, and
distributed sweets. President Asif Zardari welcomed the judgement and promised to implement it.

USA
Hillary spells out US international agenda
Secretary of State Hillary Rodham Clinton delivered a major foreign policy speech in Washington
in July 2009, in which she pledged her commitment to "smart power" while acknowledging an
international agenda that is "unforgiving."

Speaking at the Council on Foreign Relations, Clinton noted that the wars in Iraq and
Afghanistan, conflict in the South West Asia, ongoing threats of violent extremism and nuclear
proliferation, global recession, climate change, hunger and disease, and a widening gap between
rich and poor are all challenges that affect America's security and prosperity. "And all threaten
global stability and progress." she said.

In approaching these foreign policy challenges, she said, the US has to deal with the urgent, the
important and the long-term all at once.

She was confident that the Obama administration had the right strategy, the right priorities and
the right policies. "We have the right President. And we have the American people, diverse,
committed, involved and open to the future," she said. Defending the administration's willingness
to talk with perceived foes of the US, she said this was not a sign of weakness to be exploited.
"We will not hesitate to defend our friends, our interests and above all our people, vigorously and
when necessary with the world's strongest military," she said.

Discussing Afghanistan and Pakistan, Clinton said the US was committed to disrupting,
dismantling, and ultimately defeating Al-Qaida and its extremist allies. Yet, she admitted,
"Americans often ask as to why do we ask our young men and women to risk their lives in
Afghanistan when Al-Qaida's leadership is in neighbouring Pakistan?" She went on to answer
that question, saying, "We and our allies fight in Afghanistan because the Taliban protects Al-
Qaida and depends on it for support, sometimes, coordinating activities. In other words, to
eliminate Al-Qaida, we must also fight the Taliban."

Priorities of Obama administration

• Reverse the spread of nuclear weapons, prevent their use, and build a world free of their
threat.
• Isolate and defeat terrorists and counter violent extremists while reaching out to Muslims
around the world.
• Encourage and facilitate the efforts of all parties to pursue a comprehensive peace in
South West Asia.
• Pursue global economic recovery and growth — by strengthening the US economy,
advancing a robust development agenda, expanding trade that is free and fair, and
boosting investment that creates decent jobs.
• Combat climate change, increase energy security, and lay the foundation for a
prosperous clean-energy future.
• Support and encourage democratic governments that protect the rights of and deliver
results for their people.
• And stand up for human rights everywhere.

INTERNATIONAL ECONOMY
IMF pegs 2010 global growth at 2.5%
The International Monetary Fund (IMF) has raised its 2009 growth forecast for Asia's developing
economies from 4.8% to 5.5% but cautioned that a sustained rebound will depend on recovery in
developed economies. It cited improved prospects for regional giants China and India. In a report,
it raised its 2009 growth outlook for China by one percentage point to 7.5%, and for India by 0.9
percentage points to 5.4%.

IMF also raised its outlook for the global economy in 2010, but said recovery from the worst
recession since World War II would be sluggish. The IMF boosted its 2010 global growth forecast
to 2.5%, an improvement of 0.6 percentage point from its April forecast. The updated IMF
forecast was marginally worse for 2009, showing a contraction of 1.4% across the global
economy.

IMF to issue bonds to combat crisis

The International Monetary Fund has decided to issue bonds for the first time in its 60-year
history in an effort to win contributions from emerging economies such as China, Brazil and
Russia. China has already said it will invest $50 billion, while Russia and Brazil have pledged $10
billion each through the new bond offer. It would mark the first time that developing countries
have made contributions to the IMF. The bonds will be issued in the IMF’s own currency, known
as Special Drawing Rights, which is based on a basket of currencies made up of the dollar, euro,
yen and British pound. The bonds will be issued for a maximum of five years.

Thanks to Asia, economic crisis is rolling back: UN

The current economic crisis is rolling back due to the significant progress made by countries in
Asia like India and China, according to a top UN official. The financial stimulus packages and
reforms announced by these countries could help in creating a more integrated and coordinated
Asia and the Pacific that builds up on collective regional strengths and resources. During the
course of the UN Economic and Social Council session in Geneva, UN Economic and Social
Commission for Asia and the Pacific (ESCAP) Executive Secretary Noeleen Heyzer highlighted
the need for appropriate investments in infrastructure to create economic corridors that link less
developed countries to economic centres in the region, thereby increasing intra-regional trade.
Heyzer added that her organization has responded to the crisis by encouraging policies that
include social programmes such as health coverage, pensions, education and agricultural
extension services, as well as investment in small and medium scale enterprises.

ENVIRONMENT
Climate talks stall as West asks India, China to cut emissions
Attempts to forge a global consensus to battle climate change suffered a serious setback as
developed countries tried to wriggle out of any short-term commitment to reduce greenhouse gas
emissions and instead, demanded that developing economies such as India and China accept
emission reduction targets.

At a meeting of the Major Economies Forum in Rome on July 9, 2009, the developed countries
tried to renege on their commitment to use 1990 as the base year for reducing emissions. Nor
would they spell out what quantum of commitments they would accept in the run-up to 2020. The
developed nations insisted that India, China and other emerging economies like Brazil and South
Africa agree to a long-range target for reduction of GHGs with the burden-sharing formula
remaining ambiguous.

Sources termed the deliberations at the Rome meeting as “tense” with India and China having to
join hands to counter pressure from the developed world led by the US. The India-China
partnership had staved off a similar challenge at the Bonn climate change talks.

India blinks on emission caps

At the Major Economies Forum (MEF) meeting in Italy, India has gone back on some key
principles— like a refusal to accept emission caps—that it had held to be non-negotiable till just
before the G8 meet in Italy. In the course of some tough negotiations, India appears to have
relented in the face of pressure from industrialized countries. Its biggest compromise at the MEF
was to accept that all countries would work to reduce emissions in order to not let global
temperatures rise more than 2°C above pre-industrialization levels.

When this declaration, signed by PM Manmohan Singh, is turned into targets for different
countries, this may imply substantial emission reduction targets for India even if rich countries
take a hefty 80% cut in their own emissions by 2050. While an 80% cut is the most ambitious
target ever considered for the developed world, India and China would still be faced with large
cuts.

Till date, India had insisted that the science behind the 2°C target has been questioned even by
the UN climate science panel. It demanded that unless rich nations put figures on the table about
what sort of reductions they were willing to accept collectively by 2020, and then again by 2050,
India would not agree to any commitments for the long term which the 2-degree agreement
places on them.

According to several Indian observers, the recent decision would tie India’s hands as it goes into
talks at the formal UN negotiations. India for the first time has officially agreed that there is a
global target and it may now, in due course, spell out what it will take to reach it. Now the global
target of emission cuts instead of equity would become the over-arching argument in the
negotiations.

N-PROLIFERATION
Myanmar close to testing N-bomb
As world concerns remain focused on the clandestine nuclear programme of North Korea and
Iran, reports are filtering in of Myanmar’s isolated military junta may be just a few years from
testing its first atomic bomb. The key far-eastern nation is building a secret nuclear reactor and
plutonium extraction facilities with North Korea’s help, Sydney Morning Herald has reported citing
two key junta defectors. The Herald identified the two defectors as an officer with a Myanmar
army’s secret nuclear battalion and the other a former executive and leading regime business
partner, Htoo Trading, who handled nuclear contracts with Russia and North Korea.

The Myanmarese military is said to have the reactor located in mountain caves inter-linked by
deep tunnels at Naung Laing in Northern part of the country, apparently to camouflage it from
detection by satellites.

The secret complex, the paper said, runs parallel to a civilian reactor being built at another site by
Russia, which both Moscow and Yangon authorities say will be put under international
safeguards.

The revelations by the Australian Daily come as US Naval Warships recently shadowed a North
Korean commercial vessel bound for Myanmar, suspecting it to be carrying contraband nuclear
and missile components. However, the ship was not intercepted. China and other Asian nations
had helped persuade Myanmar to turn back the North Korean freighter.

A month back Japanese police had arrested a North Korean and two of its own nationals
allegedly trying to export illegally to Myanmar magnetic measuring device that could be used to
develop missiles.

Washington, the report said, is increasingly concerned that Myanmar is the main nuclear
proliferation threat from North Korea, after Israel destroyed in September 2007 a reactor that
North Koreans were apparently building in Syria.

INTERNATIONAL RELATIONS
Medvedev threatens US over missile shield
Russian President Dmitry Medvedev has warned the United States that if it did not reach
agreement with Russia on plans for missile defence systems, Moscow would deploy rockets in an
enclave near Poland. In sharp contrast to his positive words during President Barack Obama’s
visit to Moscow in first week of July, 2009, when the two reached broad agreement on nuclear
arms cuts, Medvedev used a news conference at the G8 summit to return to Russia’s earlier
tough rhetoric on arms control.

Referring to an order he gave in early 2009 to prepare deployment of short-range Russian

missiles in the western enclave of Kaliningrad to answer to any U.S. deployment of a missile
shield in central Europe, Medvedev said: “If we don’t manage to agree on the issues, you know
the consequences. What I said during my state of the nation address has not been revoked.”

In Moscow, Medvedev and Obama agreed a target for cuts in nuclear arms and a year-end
deadline for a reduction deal. Obama had praised Medvedev as a “straightforward professional”
leader. Before his Moscow visit, Obama had made clear, though, that he would not accept any
effort by Moscow to link arms control to missile defence, and reiterated Washington’s stance that
any system would be to protect against a threat from Iran, not from Russia.

Obama meets Putin

US President Barack Obama held his first meeting with Russian Prime Minister Vladimir Putin in
Moscow on July 7, 2009, and hoped that talks between them would put bilateral relations “on a
much stronger basis”.

Obama, on his first visit to Russia since becoming President, met Putin at the Prime Minister’s
country residence, a day after inking a landmark strategic arms reduction treaty with President
Dmitry Medvedev. After exchanging pleasantries, Putin told Obama that Russia is hoping for
better relations with the US, following the disagreements that arose with the previous
administration. Obama said the meeting provided an opportunity to “put US-Russian relations on
a much stronger basis”.

Ties between the two Cold-War rivals have been marked with several strains, including over arms
control, NATO expansion, and US missile defence plans for Europe. The two leaders had traded
barbs ahead of the US President’s visit, with Obama terming Putin a man who has ‘one foot in the
past’ and the Prime Minister responding by saying that ‘Russians do not stand with feet apart’.

SUMMITS
G-8 summit
On July 8, 2009, G-8 leaders held their summit meeting at L’Aquila, a mountain town in Italy.
According to the summit draft, G8 leaders believe the world economy still faces “significant risks”
and may need further help. The draft also reflected on failure to agree climate change goals for
2050.

Discord over environmental measures was underlined by withdrawal from the meeting of Chinese
President Hu Jintao, who returned to Beijing because of unrest in north-western China in which
156 people were killed.

The Group of Eight—United States, Germany, Japan, France, Britain, Italy, Canada and Russia—
kicked off with debate on the economic crisis, after what one analyst called a “reality check” in
recent times on the prospects for rapid recovery. G8 leaders badly underestimated the economic
problems facing them when they met in Japan in 2008 and now focused on what must be done to
prevent another meltdown.

President Barack Obama and his G-8 summit partners held tense discussions about how both
rich and emerging nations can live up to new clean climate goals adopted by leading
industrialised nations. Confronting global warming, a trend scientists say could unleash
devastating droughts, floods and disease if left unchecked, was a dominant theme again G-8.

The G8 summit wound up with a wry acknowledgement of its growing irrelevance as the world’s
premier power bloc. Phoenix-like, the G14 is rising from its ashes, much more inclusive, with
developed and developing countries together on an equal footing.

The intimation of G8’s impending demise came from the host of the summit, Italian premier Silvio
Berlusconi. ‘‘We saw that G8 is no longer a suitable format to show a global economic way of
doing. Instead, a consolidated G14 representing 80% of the world economy could create a real
dialogue. We want to see if the G14 is the best solution to make debates which will bring to us
unique results.’’

The deliberations of G8 and G5 saw even French president Nicolas Sarkozy making a strong
case for G14 to deal with the issues of global governance after Brazil’s President Lula spoke
about the idea of a new group.
After dealing with issues of climate change, trade and global economic downturn, the G8 and G5
countries turned their attention to food security, pledging to mobilise US $20 billion over three
years by substantially increasing aid to agriculture for achieving food security across the nations.

The leaders also committed themselves to reducing trade distortions and refrain from raising new
barriers to trade and investment and to implement WTO-consistent measures to stimulate
exports. To this end, the ‘L'Aquila Joint Statement on Global Food Security and Regional
Organisations’ said the nations would aim at an ambitious, comprehensive and balanced
conclusion of the Doha Development Round and called for renewed and determined to bring it to
a timely and successful conclusion.

Admitting the global economic crisis had serious and alarming implications for growth and poverty
eradication in developing countries, the declaration said G8 and G5 countries were determined to
engage responsibly with low-income countries, especially those in situations of fragility. It
resolved that partner countries should continue reforming financial system regulation to prevent
boom and bust cycles in economy. The declaration admitted international financial institutions
needed reform to make them compatible to the reality of the new world financial order.

The G-8 nations also asked international bodies to study ways of intervening in oil markets to
block speculation.

The next Summit will be held at Muskoka in Canada in 2010.

NAM Summit
Leaders from Non Aligned Movement countries, including India, met in Sharm el-Sheikh in Egypt
on July 15, 2009 to hammer out a strategy to tackle the world financial crisis and sought
international solidarity to fight terrorism and enhance peace and development.

Opening the two-day 15th NAM Summit of the 118 developing nations at this Egyptian Red Sea
resort city, Cuban President Raul Castro said the grouping believes that all countries in the world
should search for effective and justified measures to tackle the current financial crisis.

In his address, Egyptian President Hosni Mubarak, who took over the NAM Chairmanship from
Castro for a three-year term, sought serious efforts and international solidarity to enhance world
peace and development. Mubarak spoke about the international financial system and the need to
deal with on war-footing challenges like climate change, food security, peace and security,
disarmament, human rights and rule of law.

The Summit aimed at evolving a new international order to effectively face contemporary world
challenges.

Founded in September 1961 by first Indian Prime Minister Jawaharlal Nehru, former Egyptian
President Gamal Abdel-Nasser and ex-Yugoslav President Josip Tito, NAM now groups 118
member states, 16 observer countries and 9 observer organisations. The grouping, which
represents nearly two-thirds of the UN member countries and comprises 55 per cent of the world
population, focuses on interests of developing world.

At the two-day Summit, the leaders discussed the global financial crisis, climate change, the
Mideast peace process, food security, energy and nuclear issues. They also signed the Summit's
Final Document and Sharm El Sheikh Declaration and approved the NAM's strategy and action
plan for the future three years.

Sharm El Sheikh Summit Declaration reiterated the strong commitment to the purposes and the
principles of the United Nations Charter and the principles of international law, international
humanitarian law and human rights law. The member-States desired to enhance the
strengthening and revitalization process of the Movement through concrete measures, at all
levels.

The declaration said NAM will continue to promote disarmament and international security and
stability on the basis of equal and undiminished security for all, bearing in mind that total and
complete Nuclear Disarmament remains the only route to establish a world free from Nuclear
Weapons, taking into consideration related issue of Nuclear Non Proliferation in all its aspects
and the inalienable right of all states to the peaceful uses of nuclear energy. NAM will engage
constructively with concrete actions towards the implementation of the unequivocal undertaking
by the Nuclear Weapon States, as well as the recent statements made by leaders of some
Nuclear Weapons States to eliminate their nuclear arsenals and work towards realizing a World
Free of Nuclear Weapons, including through the establishment of Nuclear Weapon Free-Zones,
particularly in the Middle East region;

NAM will also ensure that the current comprehensive review of Peace Keeping Operations takes
duly into account the position of the Movement, in particular the demands of Troop Contributing
Countries, and to ensure that the review processes of the Peace Building Commission and the
Peace Building Fund will achieve their objectives to support all countries emerging from conflict,
based on the principle of national ownership and coordinated activities within the United Nations
system;

NAM will reinforce and build new momentum in addressing human rights issues based on a
cooperative and balanced approach focused on constructive dialogue and capacity building, while
taking duly into account the diversity of societies, political, economic, social and legal systems,
cultures and religions, and avoiding selectivity, double standards and any attempt to exploit or
use human rights as an instrument for political purposes, with a view to reinforcing the
commitment to the promotion and protection of all human rights and fundamental freedoms for all,
in particular the right to development,

NAM will continue to uphold the fundamental and inalienable right of all peoples, including all
non-self governing territories, as well as those territories under foreign occupation and colonial or
alien domination to self determination, the exercise of which, in the case of peoples under foreign
occupation and colonial or alien domination, remains valid and essential to ensure the eradication
of all these situations and to guarantee universal respect for human rights and fundamental
freedoms;

NAM also demanded achieving a just and comprehensive peace in the Middle East based on
relevant United Nations Security Council Resolutions, Madrid Terms of Reference, land for
peace, and the Arab Peace Initiative in its entirety; and said that NAM firmly supports the
inalienable rights of the Palestine people to self-determination and the establishment of their
independent, contiguous and viable State in Palestine with East Jerusalem as its capital, and a
just and agreed upon solution to the Palestine refugee question on the basis of resolution 194.

The declaration also seeks to restore the balance between the Principal Organs of the United
Nations and reaffirm the role and authority of the General Assembly, while asserting its
fundamental role in international peace and security and in promoting multilateralism.

On climate change the declaration asked to strengthen the political momentum in preparation for
the Copenhagen conference in a manner that duly reflects the views of NAM countries with
regard to mitigation, adaptation, finance, technology transfer, capacity building and shared vision
in accordance with the principle of Common but Differentiated Responsibilities, and fully utilize
the high level meeting to be convened by the Secretary General of the United Nations at the
beginning of the 64th session of the General Assembly to highlight the concerns of the NAM
countries.

On terrorism the declaration aspired to strengthen NAM solidarity in combating terrorism in all its
forms and manifestations, wherever and by whomsoever committed, in accordance with the
principles of the United Nations Charter, international law and the relevant international
conventions. In this context, it stressed that terrorism should not be associated with any religion,
nationality, civilization or ethnic group.

The Heads of State and Government recognised the long history of Nelson Mandela’s leading
role in and support for Africa’s struggle for liberation, self determination and Africa’s unity and
also his outstanding contribution in the creation of a non-racial, non sexist, and democratic South
Africa. They expressed their support for and solidarity with the Nelson Mandela Day International
Campaign and called on Non-aligned Movement member States and peoples to join in the
campaign, including by contributing 67 minutes of their time in service of their communities in
recognition of Madiba’s 67 years contribution in service of humanity. They also endorsed the
declaration to observe July 18, Madiba’s birthday, as Nelson Mandela International Day, and
requested that a resolution to this effect be adopted by the UN General Assembly at its 64th
session.

INTERNATIONAL TERRORISM
Pak nurtured terrorism: Zardari
In an astonishingly candid admission—a first by any Pakistani head of State—President Asif Ali
Zardari has admitted militants and terrorists were wilfully created by past Pakistani governments
and nurtured as a policy to achieve tactical objectives.

‘‘Militants and extremists emerged on the national scene and challenged the state not because
the civil bureaucracy was weakened and demoralized but because they were deliberately created
and nurtured as a policy to achieve short-term tactical objectives. Let’s be truthful and make a
candid admission of the reality,’’ he told a gathering of civil servants in Islamabad on Tuesday
night.

‘‘The terrorists of today were heroes of yesteryear until 9/11 occurred and they began to haunt us
as well,’’ Zardari said. He also pointedly said that future generations won’t forgive the current
leadership if it does not take corrective measures.

India has long charged Pakistan with sponsoring terrorism in Kashmir by providing arms,
ammunition and training to militants who have been engaged in a war of secession. Zardari’s
admission is bound to create a major flutter in Islamabad, particularly within the Army.

Criticising former military rulers—itself an act of derring-do—Zardari said concentration of power

in one individual was against the spirit of democracy and good governance. ‘‘Too much power in
one hand lasts for a short time,’’ he said. ‘‘For power to be effectively used for long lasting public
good, it must be dispersed as widely as possible.’’

India responded by saying that Pakistan President Asif Ali Zardari's “confession” about nurturing
of terrorists had vindicated its stand and hoped Islamabad would now make a “determined” effort
to end terrorism across the border.

Making statements in both Houses of Parliament, External Affairs Minister SM Krishna said
Pakistan must “expose” and “take action” against “conspiracies and conspirators” for terror
attacks launched in India from across the border, as future of dialogue is premised on an
atmosphere free of the threat of violence.

AUGUST-2008
CURRENT NATIONAL AFFAIRS
DEFENCE
Revised Maritime Policy
Just six months after the Indian Navy was given charge of the country’s entire coastal security, it
announced a revised maritime policy on August 28, 2009. The Navy will now have an even
sharper focus on the neighbourhood of the country. This means securing the trade routes in the
Indian Ocean region; extending the reach of the Navy to project India as a major force and also
preventing Mumbai-style sea-borne invasions by terrorists.

The 2009 edition of the Indian Maritime doctrine was released by the Chief of Naval Staff, Admiral
Suresh Mehta. The original doctrine was published in 2004 to provide a common understanding
of universally applicable maritime concepts, not only for the forces but also for the public at large.
This revision was needed on account of the rapidly changing geo-strategic environment and
transformational changes in the maritime domain.

The earlier doctrine was more generic in nature; this one will provide a sharper focus. The Indian
Navy’s role in the Indian Ocean has changed in the past 12 months. It has been sent out to patrol
the pirate-infested Gulf of Aden area to ensure safety of international sea trade routes. Indian
sailors have successfully foiled at least five bids by pirates to take over ships and brought down
instances of pirates using choppers stationed on the ships. After the Mumbai attacks in
November 2008, the government handed over the entire command and control of the coast to the
Indian Navy that has been installing high-tech sensors along the coast. In coordination with the
coast guard, it is also buying fast-attack crafts for shallow waters.

JUDICIARY
PM for war on judicial backlog
Promising the judicial system that his government would “match each step of the judiciary with
two of our own”, Prime Minister Manmohan Singh has asked the Supreme Court to play a “vital
role” in the “war on arrears” of cases and wiping “every tear of every waiting litigant”.

Addressing the day-long Joint Conference of Chief Ministers and Chief Justices, he, however,
made it clear that increasing the court strength to improve the low judge-population ratio would
depend on High Courts filling all 3,000 existing vacancies in the lower judiciary.

Describing the executive and the judiciary as “two vital wheels of the chariot of good governance”,
Mr Singh said India suffered from “the scourge of the world’s largest backlog of cases and time-
lines that generated surprise globally and concern at home. The expeditious elimination of this
scourge was the biggest challenge for such conferences and should constitute the highest priority
for all of us”. Over 30 million cases are pending in various courts across the country.

Calling for an “arrears-free judicial institution”, he expressed concern over under-trials languishing
in jails for unduly long periods. “Many such under-trials have been in jails for periods longer than
they would have served had they been sentenced. This is indeed very disturbing,” he said.

The road map for judicial reforms, suggested by President Pratibha Patil in her address to the
joint session of Parliament in June 2009, was under preparation and national-level consultation
with jurists and stakeholders in that regard would be held very shortly, Prime Minister said.

Further, there was need for comprehensive computerisation and ultimate linking of all courts in
the country into one “mega judicial information grid” for screening all pending cases and disposal
of “many old cases as moot or infructuous”.

In his address, Chief Justice of India KG Balakrishnan said there had been a “chronic shortage”
of judicial officers, especially at the subordinate level. There were also some “structural obstacles
that discouraged talented law graduates” from joining judicial services. However, he did not
elaborate on the issue. Citing a Law Commission report, he said the judicial system had to be
expanded at least five-fold in order to match the judge- population ratio of developed countries.
SC judges to disclose assets
Bowing to intense public pressure and faced with division in their ranks, Supreme Court judges
have finally agreed to take a belated step towards transparency and make public their assets and
liabilities. Details of judges’ holdings will now be posted on the website of the apex court.
However, the landmark decision comes with a caveat: The judges will not entertain any query
relating to their assets and liabilities and how their wealth has increased or decreased.

The decision to make public personal assets and liabilities as well as those of their spouses and
dependants was taken by Chief Justice of India K.G. Balakrishnan and the judges at a full court
meeting, marking a major climb-down on the part of the higher judiciary. The outcome of the
meeting was influenced by the growing pressure from within for disclosure of assets with Justice
D. V. Shylendra Kumar of the Karnataka High Court publicly taking issue with the CJI for his
stand that judges should not be required to disclose assets. The CJI even described Justice
Kumar as ‘publicity crazy’.

The judges have been declaring these details to the CJI since 1997 under an internal resolution.
But these remained a closely guarded secret with neither the head of the judiciary nor the apex
court entertaining any query, even under the RTI Act, relating to these details.

PLANNING & ECONOMY

India ranks low in public health spending
As per a WHO study, India ranks 171 out of the 175 countries in the world in public health
spending. This is less than some of the sub-Saharan African countries. For a country of one
billion, India spends 5.2% of the GDP on healthcare. While 4.3% is spent by the private sector,
the government continues to spend only 0.9% on public health. When the economic growth index
is moving forward, the wellness index is dipping.

While India ranks among the top 10 countries for communicable disease, it is, today, world leader
of chronic diseases like diabetes, hypertension and coronary artery disease.

One of the key findings of the commission was that by improving the health condition, the
economy of the country will improve. But it has been reverse in India. There is growth in GDP but
there has been no increase in healthcare spending. This inadequate public health spending has
forced the public to depend on private sector.

India’s health scenario currently presents a contrasting picture. While health tourism and private
healthcare are being promoted, a large section of Indian population still reels under the risk of
curable diseases that do not receive ample attention of policy-makers.

New Direct tax code

Making the process of paying taxes simpler for the common man has always been on top of the
UPA’s agenda. This was amply demonstrated today with the government initiating radical tax
reforms by releasing the direct tax draft code that aims to moderate tax rates and at the same
time tries to make it easier for a layman to understand and calculate his tax liability.

The reform of the tax regime introduced in 1961 is based on the objective of having a tax system
that is simpler, fairer, and easy to administer. The specific objectives of the measures are to
improve the responsiveness of the tax system, that is, to enhance the automaticity in the increase
in tax revenues with increases in economic activity; improve tax administration by simplifying the
tax system; and, lastly, promote tax compliance objective as to reduce the scope for disputes and
minimize litigation.

The goal of the new tax code is to consolidate and amend all direct taxes and simplify language
to ensure that the law can be reflected in the return form. The aim is also to reduce scope for
litigation and provide flexibility in accommodating changes without need for frequent
amendments.

Key gains from the new tax code will be: (a) Deduction (the popular section 80C) increased to
Rs 3 lakh from present Rs 1 lakh. Thus, a person with taxable income of Rs 10,00,000 is likely to
save approx Rs 1,20,000 annually. (b) Corporate tax rates, including for foreign companies,
reduced to 25% from 34%. (c) Net wealth tax exemption limit increased to Rs 50 crores from Rs
30 lakhs. (d) Wealth tax rate cut to 0.25% from 1%. (e) Indefinite carry forward of tax losses. (f)
Deduction for donation towards scientific research @ 125%. (g) Agriculture income stays outside
tax net. (h) Deductions for Royalty income of authors who are individual residents up to Rs three
lakhs and deduction for Royalty income on patents for individual residents up to Rs three lakhs.
(i) STT to be abolished. (j) Cost inflation adjustment to be available for transfers anytime after
one year from end of year in which asset is acquired (earlier 3 yrs, except for shares). (k) Base
date for capital gains tax shifted from April 1, 1981 to April 1, 2000—capital appreciation up to
2000 not taxable. (l) Maximum penalty down to two times tax amount (from three times tax)

Key pains will be: (a) Branch profit tax to be introduced @ 15%. (b) Reintroduction of capital
gains tax on listed shares & MF units. (c) Tax saving schemes like PPF and retirement benefit
schemes to be taxed on withdrawal time on “Exempt, Exempt, Tax” (EET) methodology of
taxation, for savings done after introduction of the new code. (d) Deduction for rent paid restricted
to Rs 2,000 per month. (e) Profit-linked incentives dropped. (f) Period consumed in recovering all
capital and revenue expenditure same as tax holiday. (g) Area based exemptions given earlier to
continue. (h) Definition of income to include all accruals and receipts of revenue and capital
nature unless otherwise specified. (i) Receipt of LIC policy taxable except for pure life insurance
policy. (j) Distinction between short term and long term assets done away with. (k) Cost of
acquisition/improvement nil if not determinable. (l) Roll over benefits for capital gains tax
exemption trimmed to only one residential house. (m) Profits on sale of business capital
assets/undertaking no longer treated as capital gains, but as business income. (n) Loss on sale
of business capital assets not allowable, to be only depreciable. (o) Presumptive rent to be
calculated at 6% p.a. of rateable value when higher than contractual rent to compute income from
house property. (p) For self occupied property, no deduction for interest and principal loan
repayment. (q) Income from letting of machinery, plant, furniture included if letting of building is
inseparable from the same. (r) Rent free accommodation to govt employees made taxable. (s)
MAT linked to gross assets rather than book profit @ 0.25% for banking companies and 2% for
others. (t) No carry forward credit for MAT in later years. (u) In case of conflict between double
tax treaty and code, the one that is later in point of time shall prevail.

Some new concepts have also been added to the code. These are: (a) Tests for residency
changed. (b) Foreign companies, even if partly held/managed from India, will become “resident”.
(c) Concept of ‘resident but not ordinarily resident’ dropped. (d) Income from business to be
computed separately for each business. (e) Income-expense model based on US, Canada,
Australia and most Asian countries. (f) Three types of biz expenses allowed: Operating
expenditure, permitted financial charges and capital allowances. (g) Scope of weighted deduction
of 150% to be extended to all industries. (h) ‘Scientific research’ to be defined. (i) Presumptive
taxation for certain business to continue. (j) Separate income determination regimes provided for
hospitals, SEZ, infrastructure, etc. (k) MF, VCF, Pension Fund etc. To be taxed as pass through
entities. (l) New tax regime for trusts, institutions carrying on charitable activities.

New Foreign Trade Policy

India has extended tax holiday and duty refund for exporters, while allowing duty-free capital
goods import under its Foreign Trade Policy to insulate them from protectionism induced by
recession abroad. The new five-year policy was released on August 27, 2009 by Commerce
Minister Anand Sharma. It sets a target of $200 billion worth exports for 2010-11, a feat that India
failed to achieve in 2008-09 due to a slump in global demand in the face of financial crisis.

Extension of income tax holiday for export units for one more year and continuance of duty refund
scheme till December 2010 and enhanced assistance for the scheme for development of markets
are among the measures in the FTP. The aim of the policy, which would be reviewed after two
years, would be to "arrest and reverse declining trend of exports”.
Exports have been on a decline for the past 10 months. Exports in FY'09 amounted to $168
billion and the country hopes to maintain the same level in 2009-10.

The government would encourage exports through a “mix of measures including fiscal incentives,
institutional changes, procedural rationalisation and efforts for enhance market access across the
world and diversification of export markets”.
The policy would provide a special thrust to the employment-oriented sectors which have
witnessed job losses in the wake of recession, especially in the fields of textiles, leather and
handicrafts.

Highlights

• Aims annual growth of 15 pc in 2010-11.

• Double India’s exports of goods and services by 2014.
• A high-level panel to look into dollar needs of exporters.
• Six 'Made in India' shows to promote Brand India.
• Directorate of Trade Remedy Measures to safeguard exporters.
• Duty Entitlement Passbook Scheme extended till December 2010.
• A single window system for export of perishable agri produce.
• Value addition norm for tea halved to 50 per cent.

POLITICAL
Government to scrap Darjeeling Gorkha Hill Council
The Centre, West Bengal government and the Gorkha Janmukti Morcha (GJM) have agreed to
scrap the Darjeeling Gorkha Hill Council (DGHC) and bring in its place an alternative
administrative framework for the hill district to be finalised through mutual consultation and
agreement. At a tripartite meeting of representatives of the Centre, led by Union home secretary
G.K. Pillai, of West Bengal government led by chief secretary A.K. Chakrabarty and of GJM led
by Anmole Prasad, it was decided that the DGHC Act, 1988 would be repealed and the proposal
for establishment of a hill council under the Sixth Schedule of the Constitution be dropped.

The press statement, however, makes no reference to the GJM’s central demand for a separate
Gorkhaland: a pointer to such a drastic concession being almost ruled out. The alternative
administrative framework to be worked out by the yet-to-be-named interlocutor for the Gorkha
talks will have due constitutional status and will be supported by a full-fledged Act. It is also likely
to be given more powers than DGHC. However, working out its terms is likely to be a long-drawn
affair, and, in all probability, the new framework may come well after installation of the new
government in West Bengal.

During the tripartite talks, the Centre extracted an assurance from the GJM that it would help
maintain a peaceful and conducive atmosphere during the negotiations. GJM has agreed to work
along with the other parties “in a spirit of constructive cooperation to carry the talks forward”.

The Centre also decided to push administrative works in the hill district by sending a team of its
officials to Darjeeling to review development works. Both the Union and the West Bengal
government suggested that elections to the panchayat samities, gram panchayats and
municipalities be held in the hill district “as an interim measure and to restore the democratic
process”. The GJM team offered to consult its brass on the proposal and revert to the state
government.

With nearly Rs 70 crore worth of special central assistance and even portions of the Calamity
Relief Fund lying un-utilised, it was agreed at the tripartite meeting that the West Bengal
government would send across a team to Darjeeling to discuss fund utilisation.

FOREIGN RELATIONS
India, ASEAN ink free trade deal
In a major success in its ‘Look East' policy, India, on August 13, 2009, signed a Free Trade
Agreement (FTA) with the 10-member Association of South East Asian Nation (ASEAN) bloc that
would eventually eliminate duty on 80% of the goods traded at present by 2016. The two sides
have set an ambitious target of achieving an increase of $10 billion worth of trade in the first year
after the agreement comes into force from January 2010. India's current bilateral trade with the
ASEAN bloc is worth $40 billion.

The agreement was signed by Commerce and Industry Minister Anand Sharma and Economic
Ministers of ASEAN in Bangkok. Considered as a major breakthrough, the pact comes after six
years of intense negotiations. The FTA would bring down tariffs on electronics, chemicals,
machinery and textile goods.

However, talks on software and information technology services have been postponed for
December 2009. This is one area where Indian exporters of services could have brought in good
business and also offset setbacks received in the European and US markets during the downturn.
Of the total $936 billion worth of ASEANn imports, services import account for $180 billion which
is the primary focus of Indian industry.

ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines,
Singapore, Thailand and Vietnam.

Lobbying from the domestic industry has led to India excluding 489 items from the list of tariff
concessions and 590 items from the list of tariff elimination to address sensitivities in agriculture,
textiles, auto, chemicals, crude and refined palm oil, coffee, tea, pepper, etc.

Visit of Defence Minister A.K. Antony to Maldives

Defence Minister A.K. Antony went on a three-day official visit to Maldives from August 20, 2009.
He led a high-level delegation comprising Defence Secretary Pradeep Kumar; DG, Armed Forces
Medical Services, Lt Gen N.K. Parmar; DG, Coast Guard, Vice Admiral Anil Chopra and Deputy
Chief of Navy Staff Vice Admiral D.K. Joshi.

During his visit, Mr Antony held bilateral discussions with his counterpart Ameen Faisal on ways
of expanding defence cooperation between the two countries. He also attended the closing
session of the India-Maldives Friendship function, besides paying a visit to the Indira Gandhi
Memorial Hospital, the most visible symbol of Indo-Maldives cooperation and friendship.

In a move that will serve security interests of both India and Maldives, the two countries in the
Indian Ocean region agreed on a series of measures to step up defence cooperation. At
discussions with Maldives defence forces, the emerging security challenges in the region and the
need to strengthen joint and collective mechanisms to mutually counter them were highlighted.
The purpose of his visit, Mr Antony said, was not to enter into any agreement, but to expand
cooperation within the existing robust framework.

Visit of Nepalese Prime Minister

Amid an uncertain political situation back home, Prime Minister of Nepal, Mr Madhav Nepal
arrived in New Delhi on August 7, 2009 on a five-day visit to India—his first to the country since
he assumed office nearly three months ago.
Several important bilateral issues, including the proposed revision of the friendship and trade
treaties and the finalisation of a revised extradition treaty figured prominently in the discussions
between the two sides.

Besides meeting Prime Minister Manmohan Singh, the Nepalese Prime Minister also meet
President Pratibha Patil, UPA chief Sonia Gandhi, External Affairs Minister S.M. Krishna, Finance
Minister Pranab Mukherjee and Home Minister P. Chidambaram.

Prime Minister Manmohan Singh extended India’s full support to the peace process in Nepal and
also discussed the broad contours of a proposed revised trade treaty between the two countries.
The two leaders had a one-on-one meeting lasting about an hour during which they discussed the
entire gamut of bilateral relations as well as international issues.

Intensifying economic partnership between the two countries remained at the centre of the
discussions with the focus on investment in hydro power sector. The issue of the misuse of
Nepal's territory by anti-Indian forces also came up during the talks.

Nepalese Prime Minister also addressed captains of the Indian industry, inviting them to invest
liberally in the Himalayan Nation in various sectors. He assured them of conducive atmosphere
for industrial growth. The visiting dignitary identified hydro power, roads, bridges, infrastructure
construction, tourism, agro-processing and financial services as potential areas of investment.

Political events in Nepal since May this year had shaken the confidence of Indian entrepreneurs
after attacks by militant trade unions on a few firms, including a well-known fast moving consumer
goods firm. With India-Nepal trade expected to touch Rs 15,000 crore ($3 billion) in 2009-10, the
commerce ministers of the two countries discussed the proposed revised treaty to widen the
scope of bilateral trade.

Nepal Prime Minister Madhav Kumar Nepal assured Indian investors that his office would
coordinate to ensure that investments coming from India get priority. Regarding the ongoing
violence and unrest in the country, the Prime Minister said the general law and order condition in
the Himalayan Kingdom was returning to normalcy. He said his government would shortly unveil
its security plans in consultation with all Nepalese political parties, which would offer security to
investments and ensure manufacturing without interruption. The new security plan will address
the issue regarding strikes and disruptions, so that industrial production is maintained at steady
pace and investors’ interests are adequately protected.

In a bid to support Nepal’s beleaguered peace process and check China’s growing influence,
India has decided to pump in crores of rupees into the neighbouring nation’s infrastructure. The
Indian government has taken a decision to fund three large infrastructure projects, which will
increase border connectivity and increase trade between the two countries. The government has
quickly pushed through funding for the projects to show that India is serious in its efforts to help
Nepal through the transitional period.

With the development mantra in mind, the government will put in around Rs 200 crore to set up
the first two state-of-the-art integrated Customs point along the border at Raxaul-Birganj and
Jogbani-Biratnagar. The idea is to set up the ICPs so that trade between the two countries
becomes smoother, cutting down on current procedural delays at the border. After the first two
sites are set up, the two countries will then look at setting up ICPs at Sunauli-Bhairahawa and
Nepalgunj-Nepalgunj points.

The Indian government will also fund the first phase of the Terai road project at a cost of around
Rs 700 crore and set up two rail links worth Rs 700 crore. The Terai road project looks at
upgrading around 1,500 km of roads in the Terai region, with the first phase covering 657 km.
Additionally, India will also fund a Nepal Police Academy worth Rs 300 crore in what is a
capacity-building exercise. These infrastructure projects were at the conceptual stage for the last
couple of years but have not gotten off the ground for one reason or another. By funding road and
rail projects, India hopes to start a new era of cooperation and send a strong message of support
to Nepal and its government, which has been struggling to push forward the peace process in the
face of Maoist opposition.
India’s current push for Nepal’s infrastructure also comes in the backdrop of China’s continuing
efforts in Nepal. China is currently helping Nepal build a cross border road linking Nepal to the
Tibetan Autonomous Area to improve trade and tourism. China has put in vast amounts of money
into Nepal in various sectors including hydropower, health and IT.

India, Singapore ink pact on tourism

On August 4, 2009, India and Singapore signed a joint action plan on tourism cooperation.
Minister of Tourism Kumari Selja and Singapore Senior Minister of State for Trade and Industry
and Education S. Iswaran witnessed the signing by tourism officials of India and Singapore. The
plan reiterates provisions of cooperation enshrined in the bilateral agreement on tourism signed
between India and Singapore on January 24, 1994.

India, South Korea ink free-trade pact

India and South Korea have signed a comprehensive economic partnership agreement which will
make Korean consumer products and auto parts cheaper in India. The deal excludes fully built-up
vehicles and provides for easier movement of contractual service providers and professionals
between the two countries and treatment of investments from one another’s country on a par with
domestic investments.

This is the second CEPA signed by India, the other being with Singapore. This is also India’s first
bilateral trade agreement with an OECD country.

As per the agreement, South Korea will eliminate duties on 93% of its industrial and agricultural
products and India will do the same on 85% of its goods. India has excluded sensitive items such
as farm products, textile items and built-up automobiles from tariff elimination commitments.
Duties will be phased out on most products in the next eight years.

TERRORISM
Death sentence for 2003 Mumbai blasts
On August 7, 2009, a special POTA (Prevention of Terrorist Activities Act) court in Mumbai
awarded death sentence to the three accused held guilty last week for the 2003 blasts that killed
over 50 people. Six years after two blasts at the iconic Gateway of India and Zaveri Bazaar, three
Lashkar-e-Toiba members—Mohammed Hanif Sayeed (46), his wife Fahmida (43) and Ashrat
Ansari (32)—were sentenced to death. This is for the first time that a couple has been convicted
by a POTA court for carrying out blasts.

The special court judge observed it had been proved beyond reasonable doubt that they had
committed heinous acts resulting in numerous deaths. The court agreed with special public
prosecutor that this was a rarest of the rare case where capital punishment was justified.

The trio was held guilty of planting two bombs in taxis that exploded at the Gateway of India and
Zaveri Bazaar on August 25, 2003, claiming 52 lives and injuring 244. They had also planted a
bomb on July 28, 2003, in a municipal bus in suburban Ghatkopar which killed two persons. The
three were given death penalty under section 3(2) of POTA, and IPC sections 302 (murder), 307
(attempt to murder) and 120(b) (conspiracy).

Fahmida had played a major role in these bomb blasts. She had planted a bomb in a bus on July
28, 2003, along with her husband’s friend Ashrat and on August 25, 2003, she and her husband
Hanif planted bombs in taxis at the Gateway of India.

Along with the couple Hanif and Fahmida, their 16-year-old daughter was also arrested for her
alleged involvement in the blasts. However, she was discharged since the prosecution chose not
to investigate the charges against her as she was a minor. Two other accused, Mohammed
Ansari Ladoowala and Mohammed Hasan Batterywala, were also discharged from the case by
the POTA court after the Supreme Court upheld a POTA review committee report that said there
was no case against the duo.
CURRENT INTERNATIONAL AFFAIRS

AFGHANISTAN
Elections to elect President
Taliban threats kept voter turnout low in the Kabul and the militant south on August 20, 2009, as
Afghans voted to choose the next President for their deeply troubled country. Militants launched
scattered rocket and bomb attacks but no major assaults.

Taliban militants had pledged to disrupt the vote and circulated threats that those who cast ballots
will be punished. However, voters throughout Afghanistan came out to cast their ballot, even if not
in large numbers.

President Hamid Karzai, who has held power since the Taliban was ousted in late 2001 by a US-
led invasion, is favoured to finish first among 36 official candidates, although a late surge by
former Foreign Minister Abdullah Abdullah could force a run-off if no one wins more than 50 per
cent.

Since Hamid Karzai’s election in 2004, violence in Afghanistan has increased more than seven
times, and particularly in the provinces of Helmand, Nangarhar, Zabul and Kandahar where he
had got over 80% of the votes.

Karzai’s closest rival in the elections was Abdullah Abdullah, a confidant of Northern Alliance
leader Ahmad Shah Masood.

India played safe and distant in these elections. There is a clear recognition that despite India’s
huge stakes in Afghanistan, there are no gains to playing sides in these elections. No matter who
wins, India will have a substantive playing field, except of course if the Taliban return.

Karzai has been close to India, and even when the US was trying to dislodge him, India stood by
him. Abdullah is an old India hand, having lived in India with his family during the Taliban years,
with full support of the then Indian government.

Nearly 7,000 polling centres across Afghanistan were set-up for a total electorate of 17 million
people. Ballots were counted by hand at each polling centre as soon as voting came to a close.
Counting process, however, is expected to be completed in September only. To win the election,
a Presidential candidate must get over 50% of the votes cast. If no one receives this, a runoff
election will be held within 2 weeks of the announcement of the results.

JAPAN
Landslide win for Democrats
Japanese voters swept the opposition to a historic victory in an election on August 30, 2009,
ousting the ruling conservative party and handing the untested Democrats the job of breathing life
into a struggling economy.

The win by the Democratic Party of Japan (DPJ) ended a half-century of almost unbroken rule by
the Liberal Democratic Party (LDP) and breaks a deadlock in Parliament, ushering in a
government that has promised to focus spending on consumers, cut wasteful budget outlays and
reduce the power of bureaucrats.

Democratic Party leader Hatoyama, grandson of a former Prime Minister, will take over as the
new Prime Minister.

The ruling party loss ended a three-way partnership between the LDP, big business and
bureaucrats that turned Japan into an economic powerhouse after the country’s defeat in World
War II. That strategy foundered when Japan’s “bubble” economy burst in the late 1980s and
growth has stagnated since. The Democrats will have to move fast to keep support among voters
worried about a record jobless rate and a rapidly ageing society that is inflating social security
costs.

The Democrats have pledged to refocus spending on households with child allowances and aid
for farmers while taking control of policy from bureaucrats. The Democrats also want to forge a
diplomatic stance more independent of the United States, raising concerns about possible friction
in the alliance.

MYANMAR
Suu Kyi convicted as global outrage grows
Myanmar democracy icon Aung San Suu Kyi and her US co-defendant are to appeal against their
convictions as the ruling junta faced a global wave of anger over her extended detention. US
president Barack Obama led worldwide outrage at the military regime’s decision on August 12,
2009, to give Suu Kyi another 18 months of house arrest, a verdict that shuts the Nobel peace
laureate out of elections in 2010.

A prison court sentenced her to three years of hard labour after finding her guilty of breaching the
terms of her incarceration, but junta strongman Than Shwe commuted the punishment to a year
and a half under house arrest.

In Washington, Obama called for Suu Kyi’s “immediate, unconditional release” and for the freeing
of more than 2,000 other political prisoners held in Myanmar. The US president said the “unjust”
sentence against Suu Kyi would never be able to stamp out the people of Myanmar’s desire for
freedom, accusing the regime of “continued disregard” for UN Security Council statements.

NEPAL
Gurung is army chief
Lt Gen Chhatraman Singh Gurung, who received training at the Indian Military Academy,
Dehradun, was appointed to head the Nepal Army on August 9, 2009, after his controversial
predecessor General Rukmangad Katawal went on a month-long leave ahead of his retirement in
September. Gurung is the first from the rank of commoners to head the army, which has been led
by the country’s elite and the aristocracy. The change of guard at the helm of 95,000-strong
Nepal Army came amid a continued blockade of Parliament by the Maoists demanding Katawal’s
removal. The Maoists, whose eight-month-old government fell in May 2009 after the
reinstatement of Katawal, had sought his dismissal and a debate in Parliament on the issue of
“civilian supremacy” in the country.

PAKISTAN
Politics allowed in Taliban land
On August 14, 2009, Pakistani President Asif Zardari lifted a ban on political activity in the ethnic
Pashtun tribal belt on the Afghan border, in an apparent move to loosen the grip of militants on
the lawless area. Pakistan’s seven tribal regions, known as the Federally Administered Tribal
Areas (FATA), are semi-autonomous and have never been fully integrated into the country’s
administrative and political system.

The FATA is a major sanctuary for al-Qaida and the Taliban plotting violence in Pakistan,
Afghanistan and beyond and analysts have long argued for it to be fully integrated with the rest of
Pakistan and brought under government writ. Zardari, speaking at a ceremony to mark the
anniversary of Pakistan’s independence from Britain in 1947, said Pashtun tribesmen deserved to
be treated the same as other Pakistanis.

The FATA is governed under a system inherited from British colonialists with a government-
appointed political agent ruling through the tribes, which observe their centuries-old codes, not
Pakistani laws. Political parties have not been allowed to operate in the FATA which analysts say
helped to create a vacuum for hard-line Muslim clerics to exploit.

ECONOMY
World financial crisis costs $11.9 tn
The world has earmarked a staggering $11.9 trillion to wriggle out of the financial crisis, the sum
which is enough to finance a $1,779 handout for every person living on the planet, according to
the International Monetary Fund.
Most of the cash has been handed over by developed countries, for whom the bill has been $10.2
trillion, while developing countries have spent only $1.7 trillion the majority of which is in central
bank liquidity support for their stuttering financial sectors.

The whopping total cost of crisis is equivalent to around a fifth of the entire globe's annual
economic output and includes capital injections pumped into banks in order to prevent them from
collapse, the cost of soaking up so-called toxic assets, guarantees over debt and liquidity support
from central banks.

Japan comes out of recession in Q2

Japan's economy climbed out of year-long recession in the second quarter, the government said
on August 16, 2009, expanding 3.7% at an annual pace and joining Germany, France and other
regions that appear to be emerging from the global financial crisis. But economists and politicians
sounded cautious, noting that the main driver of growth was exports and that domestic consumer
spending remained fragile amid plunging incomes and rising unemployment.

The recovery in the April-June quarter was driven by robust demand for cars, video recorders and
other electronics goods, according to government data. Shipments to China and other emerging
markets were particularly strong, although exports to the US and Europe also showed modest
recoveries. Exports grew 6.3% from the previous quarter, the highest rate in seven years.

Government stimulus measures have also helped, such as cash handouts and incentives to buy
ecological products. But economists said, the nascent recovery could quickly run out of steam
because domestic demand remains weak. Salaries are falling and the unemployment rate has
risen to a six-year high of 5.4% as companies such as Toyota Motor Corp and Sony Corp have
cut thousands of jobs.

The rebound in the world's second largest economy came after a steep, year-long contraction in
gross domestic product, including a worst-ever drop in the final quarter of 2008, when the
economy shrank at a 13.1% pace. The news from Japan comes amid signs that the global
economy may be recovering from its slump. Earlier, France and Germany, Europe's two biggest
economies, said they resumed growing in the second-quarter, while Hong Kong also said it
expanded after a year-long recession.

Economic recovery has begun: IMF

The global economic recovery has begun but sustaining it will require refocusing the United
States toward exports and Asia toward imports, according to the International Monetary Fund’s
chief economist, Olivier Blanchard.

"The turnaround will not be simple," Blanchard said. "The crisis has left deep scars, which will
affect both supply and demand for many years to come." He said US consumption, which
accounts for about 70 per cent of the US economy and a large chunk of global demand, would
not quickly return to pre-crisis strength as households cope with trillions of dollars in losses from
the falling housing and stock markets.

He said the financial crisis had made Americans more conscious of "tail risks"—events that are
unlikely to occur, but when they do have devastating consequences. That means US consumers
are unlikely to return to their free-spending ways, and both the United States and its trading
partners will have to adjust. Emerging Asian countries, especially China, must play a big role.
ENVIRONMENT
India, China unite to take on West
India and China have agreed to jointly fight any attempt by Western nations to link trade with
climate change and impose trade-related penalties on developing countries that fail to meet
environmental standards.

India and China have agreed to coordinate their views on different aspects of climate change
before every major international meeting on the subject. These are expected to be spelt out in
form of an agreement. Both countries want to negotiate with West for higher levels of financial
assistance and technology transfer in return for promises to do their best to tackle environmental
problems. But they would not agree to any legal binding on reducing emission norms because it
would come in the way of their development goals. India and China will also not agree to the
creation of any trade barriers on the excuse of climate change. India has also suggested China to
consider reducing carbon dioxide levels in power plants supplied by it to India. This would be part
of the mitigation activities that the two countries expect to carry out jointly.

INTERNATIONAL RELATIONS
Pak has modified Harpoon, India under threat: US
The US has accused Pakistan of illegally modifying the Harpoon anti-ship missile, sold to it as a
defensive tool by the Reagan Administration, to expand its capabilities to strike land targets, a
potential threat to India. The Obama Administration, reported 'The New York Times' in a front
page story, lodged its protest with Pakistan Prime Minister Yusuf Raza Gilani in June, adding to
the tension between the two countries.

Quoting unnamed officials from the Administration and the US Congress, the daily said
Washington has also accused Pakistan of modifying American-made P-3C aircraft for land-attack
missions, another violation of United States law.

The Obama Administration's accusation confirms New Delhi's assertion that the US military aid is
primarily used by Pakistan to strengthen and build up its army against India.

The newspaper said Pakistan has refuted the charge that it modified the missiles and claimed
that it developed these itself. Between 1985 and 1988, the US had provided 165 Harpoon
missiles to Pakistan.

Given the strong protest lodged by the Obama Administration, Pakistan has taken the unusual
step of agreeing to allow American officials to inspect the country’s Harpoon inventory to prove
that it had not violated the law. he latest round of dispute between the US and Pakistan, however,
reflects the “level of mistrust” between them.

TERRORISM
Pak Taliban chief Mehsud killed
Chief of Tehrike Taliban Pakistan (TTP) Baitullah Mehsud, who led a deadly campaign of suicide
bombs and assassinations in Pakistani cities, has been killed in a US drone attack in first week of
August 2009.

Intelligence officials said Mehsud was killed in a missile attack from an American drone while he
was having dialysis. Mehsud’s death means a spectacular development in the campaign by
Pakistan and the US against the Taliban and Al-Qaida fighters along the border on Afghanistan.
He was declared enemy No. 1 by Pakistani authorities for his terrible suicide attacks that played
havoc in Pakistan.

WORLD TRADE
China becomes Japan’s biggest trading partner
In a first, China has surpassed US to become Japan's largest trading partner. The move is
expected to have a softening effect on China-Japan disputes over an island and have wide
implications in Asian region including India. Japan's trade with the US accounted for just 13.7% of
its total world trade in the January-June period. Its trade with China accounted for 20.4% of the
total trade volume giving Beijing tremendous clout over its neighbour's economy. South Korea,
another neighbour, accounted for 6.1%.

TEST I
!.“The rural Development Program” initiated by U.P government for the integrated development of
villages with the help of …?
A) ICICI B) SBI C) RBI D) SIDBI E) NABARD
Ans. E
2. State Bank of India opened it’s ……………….branch Puduvalai, SivaGanga district, Tamilnadu?
A) 1000 B) 70,000 C) 100 D) 10000 E) 1, 00,000
Ans. D
3. Recently in which country the plastic money introduced and due to which the Reserve Bank of India
also wanted to introduce?
A) Nepal B) Malta C) Australia D) France E) Cyprus
Ans. C

4. By providing more services to its Customers, Which Public Sector Bank intends to introduce the
programme “Parivarthan”?
A.Canara Bank B) SBI C) SBH D) UTI E) IDBI
Ans. B

5. Which bank received the Best Bank Award for Initiatives in Mobile Payments and Banking"
-2009 award?
A) Canara Bank B) Corporation Bank D) ICICI D) AXISE) Allhabad Bank
Ans. C

6. A Magazine released from London by name “THE BANKER” releases from London marked a
Public sector bank from India as the “Best Bank-2008”. Which bank received that appreciation?
A) SBI B) IDBI C) AXIS D) HDFC D) DENA E) YES
Ans. A

7. Which Bank is the biggest Private bank lender in India?

A) HDFC B) LVB C) ICICI D) INDUSIND E) CITI
Ans. C

8. Of which of the following statements is true about 11th five year plan (2007-2012)?
A) Achieve 4%growth in Agriculture sector B) to double the percapita income by 2017

C) To reduce the educated unemployment below by 5% D) To give Broadband service to

all villages by 2012 E) All of above
Ans. E
9. 13th Finance Commission is headed by…………………..?
A) Vijay C Kelkar B) B.N.Srikrishana C) Abhijith sen d) Jagannadha Rao E)
Hariharan
Ans. A

10.Prime Minister’s Employment Generation Proramme ( PMEGP) is the merger of………?

A) PMRY&REGY B) PMRY&IAY C) IAY&CMEY D) IRDP&IAY E)NRY&CESS
Ans. A

11.Which Mandal/Taluk, stood first in the execution of programmes under National Rural
Employment Programme by providing 2.87 lakh working days in the year of 2008-2009?
A) Sirpa, Haryana B) Ernakulam, Kerala C) Khammam,A.P D) Singur, WestBengal
E) Kurg, Karnataka
Ans. C

12. Which Finance Minister at the center introduced the Central Budget for more times?( 8
times)
A) Chidambaram B) Manmohan Singh C) Morarji Desai
D) R.venkratraman E) C.RangaRajan
Ans. C
13. The Financial Year runs between…………..?
A) Jan-dec B) Apr-Apr C) Apr-Mar D) Jun-May E) Dec-Jun
Ans. 5
14. To keep stock of grain to protect our country, against starvation during natural calamities,
the scheme started was………….?
A) Rural Seed Hoarding Scheme B) Regional Grain Bank Scheme C) Central
Pulse Hoard Scheme
D) Gramina Grain Bank E) Village Grain Bank scheme
Ans. 5
15. Which hotel was partially destroyed and on which the Operation Cyclone was conducted in
26/11 attacks?
A) Sherton B) Obroi C) Taj D) Welcome E) ITC
Ans. C

16. Which organization is going to introduce , EURO IV Standard petrol and diesel in 13 cities
across the country by early 2010?
A) ONGC B) HP C) IOC D) RPC E) SHELL
Ans. C

17. Which company acquired the beleaguered Satyam group of Computer services by taking
51% stake in it?
A) L &T B) GMR C) TECH MAHENDRA D) TCS E) INFOSYS
Ans. C

18. Which cyclone attacked Tamilnadu and the coastal districts of Andhra Pradesh and caused
the destruction of crops?
A) Gustav B) Nargis C) Nisha D) Kaimuck E) Aile
Ans. C
19. Which state attracted more investments in the all sectors in the financial year of 2008-
2009?
A) west Bengal B) Uttar Pradesh C) Andhra Pradesh D) Delhi
E) Maharastra
Ans. C

20. Which of the following organizations said that half of the population is not getting enough
food?
A) IMF b) IBRD C) UNOD) ADB E) US BANK
Ans. C
21.Sunderbans in the state of West Bengal belong to the group of …………….?
A) Monsoon B) Deciduous C) Xerofatic D) TidalE) Equatriol
Ans. D
22. 96th National Science Congress ( Feb16-28 2009) was held at……………?
A) Hyderabad B) Vishakapatnam C) Calcutta D) Shillong E) Tiruvananthapuram
Ans. D

23. Who was recently appointed as Special Senor Advisor to Miguel D.Escoto, the president of
General Assembly?
A) kamalesh sharma B) Deepa gopalan C) Nirupama sen D)vikram pandit E)
Manjula sud
24.2009 Annul session of the world Bank & IMF intended to mobilize 45 $ dollars to
infrastructure facilities and 12 billion dollars to agriculture. This summit was held
at…………………….?
A) new York B) Washington c) Carolina D) sanfransico E) Alaska
Ans. C
25.Stability, Growth, Jobs are the main projections of the London Summit 2009, held on APR 2,
2009. This summit is of…….?
A) G-8 B) G-77 C) EU D) G-20 E) Arab league
Ans. D
 TEST II
1) Neel kumar katyal is the new appointed ………………… of U.S.A, Who is Indian?
1. General Adviser in white house 2. Neuron surgeon 3. Vice-president
4. Dep.solicetar general 5. Defence minister
Ans. 4

2) To which country the supply of gas was stopped by Russia on the allegation of theft?
1. Iran 2. Iraq 3. China 4. India 5. Ukraine
Ans. 5

3) Gross National Happiness Policy is being adopted by………………….?

1. Nepal 2. Bhutan 3. Pakistan 4. Sweden 5. Norway
Ans. 2

4) According to Status of Forces Agreement the U.S.A withdraws its Army from Iraq by 31
Dec…………?
1. 2011 2.2009 3.2010 4.2015 5.2020
Ans. 1

5) UNESCO observed 2008 year as the year of………………….?

1. Languages 2. Potatoes 3. Industrial safety 4. Agricultural safety 5. Polar year
Ans. 1

6) According to UNICEF reports, the major cause for the death of infants is…………….?
1. Pregnancy 2. Lung problems 3. Diaoreaha 4. Aids 5. Brain problems
Ans. 1

7. Of the following statements, which statement is correct, relating to the second summit of
BIMSTEC?
1. It means Bay of Bengal Initiative for Multi Sectoral technical and economic Co-operation (1997
2. The summit was held on Nov 13, 2008 3. Passed the declaration against terrorism
4. Want to set up a peramenent secretariat and strive to fight against terrorism
5. All of the above
Ans. 5

8. The first India-Africa Forum summit, organized by 14 countries, is held at…………..?

1. Nairobi 2. Cairo 3. Johens berg 4. Mumbai 5. New Delhi
Ans. 5

9. Konkan is the joint military exercise of India and of………..?

1. Britain 2. U.S.A 3. China 4.China 5.Egypt
Ans. 1
10. In how many states the delimitation process of constituencies is postponed?
1. 4 2. 3 3. 11 4.5 5.6
Ans. 4

11. EVM stands for………..?

1. Electronic voting Memory 2. Electrical Voting Machine
3. Electronic voting Mean4. Electronic vote Mouse 5. Electronic voting Machine
Ans. 5

12. National Means cum Scholarship scheme introduced to …………………?

1. Reduce the literacy rate2. Increase the attendance 3. To achieve the 100% primary education
4. To reduce the rate of drop-outs 5. To achieve the 100% primary education
Ans. 4

13. Which Bank is the first of its kind to introduce the chip-based ATM/DEBIT card?
1. ICICI 2. AXIS 3. UTI 4. Andhra Bank 5. Barclays Bank
Ans. 3

14. Reserve Bank of India does not do the duty of………………….?

1. Minting of currency 2. Regulate the credit rate 3. Minting the coins
4. Control the circulation of money 5. Fixes C.R.R
Ans. 3

15. The first kisan SEZ was established in the state of…………………….?
1. Bihar 2. Goa 3. Maharastra 4. Tamilnadu 5.Andhra Pradesh
Ans. 5

16. Which company is exploring the oil from Godavari – Krishna basin in the state of Andhra
Pradesh?
1. IOC 2. ONGC 3. RPCL 4. SHELL 5. HP
Ans. 3

17. The central Human Resources minister Kapil Sibal written …………..
1. Versions of bhagavadgita 2. My country-my life 3. Mohini kahani viswam
4. The idea of Freedom 5. The partial observations
Ans. 5

18. ‘A SPACE ODYSSY’ is the work of ………….?

1. Arthur c Clark 2. Hopkins 3. Madhavan Nair 4. B. Raman 5. Taslima Nasreen
Ans. 1

19. Which country has more internet connections by Jan 2009?

1. Germany 2. India 3. China 4. Russia 5. Australia
Ans. 3
20. Which city in the world gets the power by only means of non-conventional energy?
1. London 2. sirpa3. kujumaki 4. Moscow 5. Paris
Ans. 3

21. The city of fashion in 2008 is…………….?

1. London . Mumbai 3. Canberra 4. Paris 5. new York
Ans. 3

22.132 billion dollars capitalized silk City is being built in ………..?

1. Kuwait 2. India 3. Netherlands 4. Pakistan 5. Iran
Ans. 1

23. Who is the first lady speaker of Pakistan National Assembly?

1. mere kumar 2. shanno devi 3. famida mirza 4. Engochi adichi 5. Taslima
Ans. 3

24. Which south Asian country released RS s1000 coin recently?

1. India 2. Bhutan 3. srilanka 4. Burma 5. Mauritius
Ans. 3

25.In the name of which Indian economist a chair is constituted in the Harvard University?
1. Ragnar Frisch 2. Marshall 3. Ranga Rajan 4. Amartya Sen 5. Keynes
Ans.4

TEST III

1. Which is the oldest mint in India?

1. Hyderabad 2. Dewas 3.Mumbai 4.Noida 5.Hoshangaband
Ans. 3

2. The college of Agricultural Banking is situated at.............?

1. Hyderabad 2. Mumbai 3. Kolkatta 4. Bangalore 5. Pune
Ans. 5
3. According to Micro Small Medium Enterprises Development Act 2006, the capital of Small
scale Industries raised from RS. 1 crore to..?
1. 5 cr 2. 3 cr 3. 6 cr 4. 10cr 5. 14 cr
Ans. 1

4. Jawharlal Nehru University is at.........?

1. Mumbai 2. New Delhi 3. Kolkata 4. Coachin 5. Visakapatnam
Ans. 2
5. The present number of goods remained in the reserve list of SSI goods?
1. 14 2. 18 3. 24 4.101 5. 21
Ans. 5

6. The approximate share of Service sector to the third sector in India is nearer to………?
1. 21% 2. 32% 3.63% 4.11% 5.50%
Ans. 5
7. Which theory suggests that the investment in the Large Scale Industries is necessary for the
development?
1. Major Push 2. Pull 3. Big Push 4. Giant 5. Robust
Ans. 3

8. How many constituencies are there in 2009 General Elections in the S.C. Category? /
1. 47 2. 79 3. 84 4. 41 5. 412
Ans. 3

9. In 81 Oscar Film Awards, which Indian short Film bagged the best Documentary Short Film? /
1. Slum dog Millionaire 2. Man on wire 3. Departures 4. Smile Pinky5. Wall-e
Ans. 4

10. The origin of Spices by means of natural selection is the work of…..?
1. Galileo 2. Louise Pasture 3. Leaven Halk 4. Einstein 5. Charles Darwin
Ans. 5
11. It is the practice that the president of United States of America takes the oath on
1. July 4 2. Dec 31 3. Jan 16 4. Jan 20 5. Aug 15
Ans. 4

12. Which mission is launched from Cape Canerval on Mar 6 2009, to see whether there are any
planets like earth?/
1. Messenger 2. Path Finder 3. kepler 4. Voueger 5. Kupair
Ans. 3

13. Azlan Sha Hockey Cup lifted for the fourth time by……………..defeating the host
Malaysia?
1. India 2. Pakistan 3. Australia 4. Netherlands 5. Canada
Ans. 1

14. 75th Ranji Trophy lifted by……….defeating Uttar Pradesh, held in Jan 2009 at Hyderabad?
1. Punjab 2. Mumbai 3. Kerala 4. Hyderabad 5. Maharastra
Ans. 2

15. In the memory of which great military man, the Indian government issued the postal stamp,
renowned to play a major role in the 1971 Indo-Pakistan war?
1. Kariappa 2. Nachikethan 3. vaidya 4. Manekshaw 5. Krishna rao
Ans. 4
16. In the ending of 3 decades rule, Maldives elected the new president . He is ……….
1. Laghari 2. Khomaini 3. Gadaffie 4. Naushed 5. El Baradi
Ans. 4

17. The guest of Republic Day celebrations on 26 Jan 2009 is Nur Sulthan Nazar Baiv. He is the
president of…?
1. Uzbekistan 2. Iran 3. Italy 4. Azar Baizan5. Kazikistan
Ans. 5

18. Jan 24th of every year to be celebrated as ………………………….?

1. National Literacy day 2. National Education day 3. National martyr’s day
4. National Army day 5. . National girl child day
Ans. 5

19. Financial Literacy and Credit Counseling Center is established by R.B.I to give advice to
…………..?
1. banks 2. financial institutes 3. exporters 4. importers 5. investors
Ans. 1

20. The second stage testing of Indian light weight Combat Aero plane was completed by Mar 5
2009. it is..?
1. Lakshya 2. Pruthvi 3. agni 4. k-32 5. Tejas
Ans. 5
21. Whose Name was deleted from the Red corner notice list, alleged to receive kickbacks in
Bofors deal?
1. Dawood Ibhrahim 2. Chota Shakiel 3. Khatorcchi 4. Chora raja 4. Mohhamad Ifthikar
Ans. 3

22. The 60th NATO summit was held in …………….on Apr 4, 2009 ?
1. Pari 2. London 3. Hokkayado 4. Newdelhi 5. Starasburg
Ans. 5

23. UNESCO’s World Press Freedom Award received by ………….?

1. Vikramathunge 2. Albert Duanto 3. mark Tully 4. kuldeep nair5. Vincent smith
Ans. 1
24. France supplied 30 tonnes of Uranium on Apr 9 2009. It stores at the National Fuel Complex
at…..?
1.Hyderabad 2. Kudamkalam 3. Ranabhatt 4. Tarapur 5. Trivendrum
Ans. 1

25. 2009 is celebrated as the year of……..?

1. potato 2. polar 3. languages 4. girl child 5. Agriculture
Ans. 2
 TEST IV
1. The head quarters of North Atlantic Treaty organization is at …………..?
1. Katmandu 2. Washington 3. Paris 4. Geneva 5. Brussels
Ans. 5
2. Where India starts a Jaipur Leg factory?
1. South Korea 2.srilanka 3. Angola 4. South Africa 5. Bhutan
Ans. 3

3. India and …..Have 21st century joint vision pact after Manmohan Sing toured this nation in
2008?
1. Pakistan `2. Bhutan 3. Srilanka 4. China 5. U.S.A
Ans. 4

4. Which country is the second highest newspaper market in the world according to W.A.N?
1. China 2. U.S.A 3. India 4. Japan 5. Russia
Ans. 3

5. The biggest tulip garden started by Sonia Gandhi in the sate of……….?
1. Pune 2. Hyderaabd 3. Bangalore 4. Kolkatta 5. Jammu
Ans. 5

6. India celebrated her………….th Republic Day on 26 Jan 2009?

1. 59 2. 57 3.47 4. 61 5. 60
Ans. 4
7. The retirement age of the teaching faculty of Indian Public Health Services Institutes increased
to..?
1. 70 2. 62 3. 68 4. 58 5. 65
Ans. 5

8. Which IIM in India got European Quality Improvement System (EQUIS) Status?
1. Delhi2. Hyderaabd 3. Ahemdabad 4. Chennai 5. Bangalore
Ans. 3

9. Africa meets Asia is a summit of great musicians held in 2008. The summit was held at….?
1. Bangalore 2. Hyderabad 3. Pune 4. maholi 5. simla
Ans. 1

10. Of the following sites which was recognized as the World Heritage site among Indian
Railways?
1. Kalka-Simla 2. CST 3. Darjiling lane4. Ootmakandu lane 5. All of the above
Ans. 5

11. Indian History Congress summit was held at………….in the state of Kerala on Dec 29, 2008?
1. Tiruvananthapuram 2. Eranakulam 3. Cochin 4. Cannore 5. Aluvai
Ans. 4

12. Hoggenkul water project dispute risen between Tanilnadu and the state of …………?
1. Andra Pradesh 2. Kerala 3. Karnataka 4. Orissa 5. Goa
Ans. 3
13. The integrated Greenfield Automotive field is established at………?
1. Wardha 2. Jamshedpur 3. Belguam 4. Vijayawada 5. Aragadam
Ans. 4
14.Bijapur and ………..district of Chattisgarh were selected by central government by central
home ministry to develop them, as they are most effected areas of Naxalites?
1. Siliguri 2. Danthevada 3. Panthnagar 4.Singuru 5. Sandand
Ans. 2

15. Which state speaker resigned on the allegation that he harassed a woman in his peshi?
1. Andhra Pradesh 2. Tamilnadu 3. Orissa 4. West Bengal 5. Delhi
Ans. 3

16. Jallikattu is the play cum festival came in to controversy but allowed by the supreme court
with some limitations. This one is celebrated in the state of ……………?
1. Andhra Pradesh 2. Kerala 3. Orissa 4. West Bengal 5. Tamilnadu
Ans. 5

17. Which state government decided to apply reservation system in the outsourcing system also?
Andra Pradesh 2. Kerala 3. Uttar Pradesh4. Orissa 5. Goa
Ans. 3

18. NTPC started its second phase of Mega thermal project in the state of Bihar. It is….?
1. Kosi 2. Baglihar 3. Punatsugu 4. Barah 5. Metor
Ans. 4
19. The future projects of ISRO are……….
1. Launch Mars orbitor ( 2009-2015) 2. Launch solar mission by 2012
3. Chandrayan -2 4. send manned moon mission by 2020 5. All of the above
Ans. 5
20. As she suggested the usage of Garlic in the place of chemicals, an asteroid named after……?
1. Nandini sarma 2. kalpana chawla 3. sunitha Williams4. Indira sinha5. sonal sha
Ans. 1

21. According to Global Hunger Index (G.H.I), India occupied 66th rank. Maritus occupied the
first rank. And the last rank got by………?
1. congo 2. china 3. france 4. Russia 5. Somalia
Ans. 1

22. The largest bank in the private sector is………………?

1. uti 2. axis 3. hdfc 4. lic 5. icici
Ans. 5

23. In Slumdog Millionaire film, the quiz master character acted by……………….?
1. Amitab Bacchan 2. Rajkapoor 3. Sharukh Khan4. Anil kapoor 5.Mahendra Kapoor
Ans. 4
24. Which one among the following is not the field to be given in Nobel prizes?
1. physics 2. chemistry 3. mathematics 4. literature 5. Economics.
Ans. 3

25. Which bank ATM has in orange colour?

1. SBI 2. ICICI 3. ING VYSYA 4. HDFC 5. ANDHRA BANK
 TEST V
1. Which committee suggested having 10 rupee coins, in the place of currency bills?
1. Abhijith sen 2. Kelkar 3. Tarapore 4. Rangarajan 5. Persimistri
ANS. 3

2. Which Indian bank has the largest number of branches outside India?
1. Allahabad bank 2. Corporation bank 3. S.B.I 4. I.C.I.C.I 5.H.D.F.C
ANS. 3

3. Which Banks in the world suggest that India is the better country to have long time
investments?
1. American 2. Australian 3. Japanese 4. Russian 5. Canadian
ANS. 3

4. Of all the banks in India, which bank ATM has the orange colour?
1. S.B.I 2. ICICI 3. HDFC 4. Corporation Bank 5. ING Vysya
Ans. 5

5. Name the bank which was awarded the best ATM Maintenance Award-2008 by the famous
magazine Business Line releases from England?
1.AXIS 2. Bank of India 3. Allahabad Bank 4. ICICI 5. Corporation Bank

7. Which scheme provides 35 kgs of Food Grains to BPL families by Indian government?
1. Jawahar Rojagar Yojana 2. Dhanalaxmi 3. Amtyodaya Anna Yojana 4. National
Pension Scheme 5. Indian Ration scheme
ANS. 3
8. Among the following Indians , Who is the first Indian to receive the Golden Globe Award ?
1. A.R.Rahaman 2. Jakir Hussain 3. Sivamani 4. Latha Mangeshkar 5. Ilaya Raja
Ans. 1

9. In which city, the Brail Foot Ball Academy was established ?

1. Kolkatta 2. Mumbai 3. Hyderabad 4. Goa 5. Chennai
Ans. 4

10. According to recent studies, which country bypassed Germany to become the third biggest
economy of the world?
1.China 2. Japan 3. India 4. Russia 5. Australia
Ans. 1

11. By and large which country became the threatening factor to U.S.A, in the eastern globe in all
means?
1. Pakistan 2. North Korea 3. India 4. Russia 5.china
Ans. 2

12. The following two countries established the embassies in the other country, by ending the
differences arisen in the last decade?
1. Syria, Saudi 2. Saudi, Israel 3. India, Pakistan4. U.S.A and Canada 5. Syria, Lebanon
Ans. 5
13. The voters eligible to participate in the 15th Loksabha elections?
1. 60 cr 2. 100 cr 3. 120 cr 4. 84 cr 5. 72 cr
Ans. 5

14. Global studies say that the percentage of forests in the country must be 33 %. In India, the
percentage of forests is.,?
1. 44% 2. 33% 3. 21% 4. 41% 5. 12%
Ans. 3

15. Recent survey conducted by the magazine Economics Intelligence Unit, the costliest city in
the world is……?
1. Washington 2. New York 3.Tokyeo 4. New Delhi 5. Moscow
ANS. 3

16. 6th chief of R.S.S is Mohan Bhagavath. R.S.S stands for………………….?

1. Rastriya swayamsevak sangh 2. Reliance Stainless steel 3. Recurring Saving Scheme
4. Religion and spiritual society of India 5. Rastriya swayamsevak samstha
Ans. 1

17. Garuda shield is the joint Military exercise of India and ………………………?
1. U.S.A 2. China 3. Indonesia 4 Britain 5 France
ANS. 3

18. The first elected President of any political party in India is Dr.Jayaprakash Narayan . He
founded………….?
1. Loknayak 2. Lokjana 3. Lokmanch 4. Loksakthi5. Loksatta
Ans. 5

19. RPCL became successful in the finding of oil fields in K.G. basin. K.G means?
1. Kaveri-Godavari 2. Kaveri-Gandak 3. Krishna-Godavari 4. Kalindi-Godavari
5. Kosi-Gandak
ANS. 3

20. Reverse Repo is the interest rate as ………………………………………………………….?

1. RBI borrows money from world bank for the short purpose
2. RBI borrows money from Govt. for the short purpose
3. RBI borrows money from banks for the short purpose
4. Govt. borrows money from for the short purpose
5. RBI provides loan to individuals for the short purpose
ANS. 3

21. To measure the inflation in India, ‘Whole Sale Price Index’, which goods occupy 63.5
percentage of weightage?
1. Oil 2. Consumer goods 3. Food grains 4. Housing Appliances
5. machine produced goods
Ans. 5

22. 11th five year plan add the power of……………………..to Indian Power Sector production?
 1. 77,577 MW 2. 60,500 MW 3. 45,000 MW 4. 90, 000 MW 5. 12,050 MW
Ans. 1
23. The first Knowledge museum was established in India at ………………?
1. Delhi2. Mumbai 3. Kolkatta 4. Pune 5. chandigarh
Ans. 5

24. Operation Cast Lead is the operation conducted by the………………..?

1. Indian Army attacks on Punjab terrorists
2. U.S.A attacks on Iraq terrorists
3. Entering of Pak army in Lal Mosque and killing the terrorists
4. operation of China’s Army on Bhutan revolutionaries
5. Israel attacks on the Hamas terrorists in Gaza Strip
Ans. 5

25. Pradhan committee submitted its report on………………..?

1. Mumbai attacks 2. increasing the prices 3. banking 4. oil 5. Manipur attacks
Ans. 1

TEST VI

1. A foreign Bank should bring ………dollars to business to India in the first year?
1. 10 million 2. 20million 3. 30 million 4. 1 billion dollars 5. 21 million dollars
Ans. 1

2. The winner of Australian junior open Title won by Yuki Bambri belongs to the state of……….?
1. Haryana 2. Andhra Pradesh 3. Jammu 4. Karnataka 5. Delhi
Ans. 5

3. Which country had given the order to buy DRUVA helicopters from HAL ( INDIA) ?
1. England 2. U.S.A 3. Equodar 4. Russia 5. China
Ans. 3
4. Earth hour is celebrated on……….?
1. Mar 24 2. Mar 23 3. Mar 14 4. Mar 18 5. Mar 28
Ans. 5

5. 5600 MW capacity Pancheswar project is the joint venture of India and ……..?
1. Bhutan 2. Bangladesh 3. Mynmar 4. Pakistan 5. Nepal
Ans. 5

6. The first Armed forces Tribunal is headed by……..?

1. K.G.Balakrishnan 2. A.S.Annand3. Y.V.Chandra Chud 4. G.Sinha 5. A.Mathur
Ans. 5
7. Lisbon Treaty belongs to the ……….?
1. NATO 2. EU 3. CENTO 4. UNO 5. AU
Ans. 2
8. The U.S.A.Democratic Party’s symbol is………..?
1. Dog 2. Elephent 3. Computer 4. Tiger 5.Ass
Ans. 5

9. India becomes the top producer of the steel by………..in the world?
1. 2012 2. 2013 3. 2014 4. 2015 5. 2020
Ans. 4

10. In srilanka, the tamilians dominated in the area of……….?

1. north west 2. south east 3. south west 4. north east 5. north central
Ans. 4

11. Telayya power project with the outlay of Rs. 20,000 crores in Jharkahand belongs to …….?
1. NTPC 2. LANCO 3. GVK 4. VTPC 5. RELIANCE
Ans. 5

12. 90 billion dollars worth an industrial corrider is being built between Delhi and …….with the
co-operation of Japan.
1. Kolkatta 2. Pune 3. Agra 4. Mumbai 5. Jodhpur
Ans. 4

13. The miimum capital of Medium Term capital industry is………?

1. 1 cr 2. 2 cr 3. 3 cr 4. 4 cr 5. 5 cr
Ans. 5

14. 100th Indian Constitution Bill refers to…..?

1. inclusion of languages 2. woman reservation 3. information bill 4. compulsory
education 5. none
Ans. 1

15. In May 2009, R.B.I withdrawn Special Market Operations ( SMO ) for supporting the……
sector?
1. Steel 2. Coal 3. paper 4. Petrol Refine Sector 5. Defense
Ans. 4

16. Of the following banks, which one among the following was closed in U.S.A by Jan 1, 2009?
1. Lehman Brothers 2. Silverton Bank 3. Citizens Community Bank4. America West Bank
5. All of the above
Ans. 5

17. ………the former Governor of R.B.I was appointed as the member in UN panel of economists
to suggest measures to deal with current economic crisis?
1. Bimal Jalal 2. C.D.Deshmuck 3. D.Subba Rao 4. Manmohan Singh 5.
Y.V.Reddy
Ans. 5
18. Indira Gandhi National Widow Scheme provide pension of Rs. ….to the age of 40-60 years of
age?
1. 100 2. 300 3. 500 4. 200 5. 1000
Ans. 4

19. Forbes Magzine mentioned ………….as one of the richest Indian Billionaire heiress?
1. Vanisha Mittal 2. Iswarya Roy 3. Kokila Ben 4. Usha Sandhya 5. Gayatri devi
Ans. 1

20. Which Indian Player is the only non-Russian to become the only FEDE chess Oscar winner for
the 5th time?
1. Koneru Hampi 2. Harikrishna 3. Viswanath Anand 4. Baruva 5. none
Ans. 3

21. Of the following which statement is incorrect?

1. INS Virat is warship 2. INS Sivalick is missile boat 3. INS Akula is made in France
4. INS Godavari is Air Craft Carrier 5. All of the above
Ans. 5

22. On Apr 18 2009, the Indian branch of London Court Of International Arbitration is
estbablished at….?
1. Mumbai 2. Kolkatta 3.Chennai 4. Pune 5. New delhi
Ans. 5

23. In the alternative sources of energy, Ethanol as a viable bio-fuel can be obtained from…….?
1. Soya 2. potato 3. Beetroot 4.Sugar cane 5. Neem
Ans. 4

24. On Apr 19, 2009 Asian Billiards Championship-2009 clinched by………?

1. Geeth Sethi 2. Chandulal 3. Michel Andrew 4. Ramiz Anand 5. Pankaj Advani
Ans. 5
 TEST VII
1. The slogan of Jun 5th , 2009 World Environment Day is………….
1. Do not cause damage to climate, It hurts you
2. Dream world from climatic change 3. one world and one globe
4. This is your planet and love it 5. Your planet needs you-unite to combat climate change
Ans. 5

2. According to Indian Statistatical senses the percapita income of India risen to RS. 37,490
(2008-209). The average Indian income risen to Rs……………..?
1. 3000 2. 2500 3. 5000 4. 6000 5.1000
Ans. 1
3. According to WHO records, the life span of Indian man is 63 years. And the life span of Indian
woman is……….?
1. 65 2. 60 3. 81 4. 45 5. 66
Ans. 1

4. First H1N1 case in India registered at…………………………..in India, according to National

Institute of Communicable Diseses?
1. Hyderabad 2. pune 3. Mumbai 4. nagpur 5. lucknow
Ans. 1

5. New Pension scheme introduced by the central governemet is effective from 2009. which
among the following is incorrect relating to that scheme?
1. This scheme can be opened by any citizen of the country.
2. This one can be opened by man and woman 3. the ages between 18-55
4. This scheme is not applicable to the army personnel
5. The withdrawals allowed in the mid periods also
Ans. 4

6. The Reserve Bank of India projected the GDP growth of......................as per its annual growth
according to Annual Policy statement 2009-2010?
1. 6% 2.4% 3. 5.1% 4. 7.9% 5. 5.7%
Ans. 5

7.Project Kuarava is the project to.....................................

1. gnome sequencing project on Zebra Project 2. Hi-tech project launched by Hyderabad police
to nab the culprits 3. The project of ISRO to locate bactiria in the space
4. to capture the hoarders of food grains 5. zee t.v show to interview the political leaders
Ans. 1

8. Among the following which player was declared as the Golden Player of 2009 Indian Premier
League?
1. Adam Gilchrist 2. Brain Lara 3. Sachin 4. Dhoni 5. M.Hayden
Ans. 1
9. State Bank of India and Macqurie, the famous financial powerhouse want to float $ 1 billion
venture fund to boost infrastructure in India. Macquire belongs to.....?
1. U.S.A 2. India 3. Italy 4. Australia 5. Canada
Ans. 4

10. Which country inagurated the first floating nuclear plant in the world?
1. Japan 2. Britan 3. Russia 4. France 5. China
Ans. 3

11. The highest number of candidates an electronic voting machine can support
is............................. If the number exceeds this , manual ballot is used/
1. 51 2. 62 3. 91 4. 100 5. 64
Ans. 5

12. which is India's largest international trading organisation?

1. IOC 2. ONGC 3. MMTC 4. BHEL 5. DRDO
Ans. 3

13. Which among the foloowing is correct regarding the Deepak Parekh committe?
1.to suggest the private banking 2. to make Mumbai as the financial city 3. To suggest measures
for financing the development of infrastructre.
4. to ban the forword trading in agricultural goods 5. to lift the service tax in totally
Ans. 3

14. Which among the following is not correctly matched?

1.BARCLAYS BANK-ENGLAND 2. KOOKMIN BANK-SOUTH KOREA3. ABN-AMRO
BANK – ENGLAND 4. U.K - FTSE 5. U.S.A – Nasdaq
Ans. 3

15. Where the first Export Processing Zone was set up in India?
1. Kakinada 2. visakapatnam 3. Kandla 4. Mumbai 5. Kolkatta
Ans. 3

16. Who among the following is considered to be the founder of World Economic Forum?
1. Robert Zollick 2. Ban ki Moon 3. Klaus Schwab4. Paul Krugman5. Roselana Higgins
Ans. 3

17. In a dry cell, which ofthe following are used as electrolytes?

1. Ammonium chloride and zinc chloride 2. Ammonium chloride and Calcium chloride
3. Ammonium Chloride and Calcium carbonate4. Magnesium chloride and Zinc chloride
5. Zine Phospate and Ammonium Chlorite
Ans.4

18. Devi Ahalya Bhai Holkar Award is given to .....?

1. Peace 2. Literature 3. international understanding 4. Courage and valour 5.
medicine
Ans. 4
19. 2,10,000 refugee camp with the daily new arrival of 200, is found in............as they are
migrating more from Somalia?
1. nigeria 2. kenya 3. jambia 4. zimbwabe 5. chad
Ans. 2
 20. Which country quit the Russian dominatded C.I.S in 2008?
1. Uzbekistan 2. Khazikistan 3. Georgia 4. Azerbaizan 5. Osettia
Ans. 3

21. In which state, India's largest private sector sea port been commissioned recently?
1. Bihar2. Karnataka 3. Tamilnadu 4. Andhra Pradesh 5. Orissa
Ans. 4

22. Audiacity of hope is the book written by................?

1. Obama 2. Hillary clinton 3. Al gore 4. Manmohan Singh
5. Abdul Kalam
Ans. 1

23. In the recent news, we hear the word MCX-SX. It is...........?

1. Bike 2. rocket 3. super computer 4. Stock exchange 5. power plant in U.S.A
Ans. 4

24. Which among the following is wrongly matched?

1. Asian Development Bank- Manila 2. Asia-pacific Economic Co-operation-Singapore
3. World Bank- Newyork 4. ASEAN-Bangkok 5. I.M.F-Washington
Ans. 3

25. The climate change Accountability Bill is passed by................one of it's kind in the world?
1. U.S.A 2. India 3. Italy 4. Australia 5. Canada
Ans. 5

Test VIII
1. Which bank issued the first transparent credit card in the world?
1. CITI BANK 2. AXIS BANK 3. ABN-AMRO BANK 4. HDFC 5. STANDARD CHARTED
Ans. 3

2. The name of the scheduled bank is found in the ……..schedule of R.B.I Act?
1. I 2. IV 3. V 4. VI 5. II
Ans. 5

3. In 2009, which bank claimed that its ATM is nothing but a mini bank?
1. SBI 2. AXIS 3. SBH 4. HDFC 5. UTI
Ans. 4

4. Which bank conducts the internal training program Parivarthan for its employees?
1. SBH 2. ANDHRA Bank 3. SBI 4. Standard Charted 5. ICICI
Ans. 3

5. In TAPI pipe line, T means

1. Turkey 2. Tunisia 3. Thailand 4. Turkmenistan 5. Tajikistan
Ans. 4
6. When Indian Space Age is started?
1. 1958 2. 1969 3. 1957 4. 1921 5. 1981
Ans. 3

7. 97th Indian Science Congress summit held at……..?

1. Visaka patnam 2. Shillong 3. Hyderabad 4. Thiruvananthapuram 5. New Delhi
Ans. 4

8. Who received the prestigious Dronancharya Award recently?

1. Karanam Malleswari 2. Sunil Gavaskar 3. Gopichend Pullela 4. Vijender 5. Karthikeyan
Ans. 3

9. Which among the following is not the term of Indo-Russian Agreement-2008, made during Medvadev visit in
Dec-2008?
1. To give M-18 helicopters to India 2. Help India in the sending of manned mission to Moon
3. Sending of Russian troops to keep peace in Kashmir4. Help India in the developing of KudamKalam reactors
5. Supply 20,000 tones of Uranium
Ans. 3

10. Which parliamentary committee suggested not giving even one acre of fertile Land to the SEZ?
1. Manmohan singh 2. Lallu Prasad Yadav 3. Murali Manohar Joshji
4. Karunanidhi 5. Manohar joshi
Ans. 3

11. Which among the following is not found in the UNESCO’S heritage site in the rail projects in India
is………?
1. Darjeeling rail 2.Mumbai-CST 3. Mahaparinirvan Express
4. Mettupalem Rail Lane 5. kalka-simla
Ans. 3

12. In which year conference, the International Astronomical Union (IAU), remove Pluto from the Planet list?
1. 2001 2. 2002 3. 2009 4. 2006 5. 2010
Ans. 4

13. Which country registers the more polio cases after 1998?
1. Nigeria 2. Iran 3. India 4. England 5. Libya
Ans. 3

14. Which country in the world registers 10 cr populations in 2050, as its population in 2008 is 12.78 cr?
1. Germany 2. China 3. Japan 4. India 5. Iran
Ans. 3

15. At which place the State Bank of India has no foreign subsidiary?
1. London 2. California 3. Canada 4. Mauritius 5. Nigeria
Ans. 1

16. Samanwith is the programme started by which bank, for the welfare of tribal in Orissa?
4. 1. HDFC 2. ANDHRA Bank 3. Syndicate Bank 4. State Bank of India 5. ICICI
Ans. 4
17. Madhu Babu Pension scheme introduced by Orissa government to provide the pension of Rs. 200
to…….patients?
1. Andhra Pradesh 2. Maharastra 3. Orissa 4. Tamilnadu 5. Karnataka
Ans. 3

18. Yashpal committee enquires in to the study of……….?

1. establishment of universities 2. computer technology 3. national educational services
4. recruitment of teachers 5. school bags
Ans. 5

19. Which Indian Student is believed to have more I.Q than Albert Einstein (Einstein I.Q – 160)?
1. Raguhnath Jha 2. Madhav sruthi 3. Pranave veera
4. Maeka gourav 5. Ratna Kumar Mangal
Ans. 3

20. The Assent of Money- A Financial History of world is the book written by?
1. Chidambaram 2. Y. V.Reddy 3. Rangarajan 4. Bimal Jalal 5. manisankar Iyyer
Ans. 5

21. By what year World records 9 Billion population?

1. 2015 2. 2050 3. 2045 4. 2060 5. 2030
Ans. 2

22. Who headed the Boeing India, who is non-resident Indian?

1. Rahul Aditya 2. Indira Nuyu 3. Dinesh Koskar 4. Ranjan Deepak 5. Usha Madokar
Ans. 3

23. Ladli Laxmi Yojana is the scheme of ………………government, for the welfare of the girl child?
1. Uttar Pradesh 2. Madhya Pradesh 3. Maharastra 4. Rajasthan 5. Tamilnadu
Ans. 2

24. Delaram- Geranj is the highway between India and………………..?

1. Pakistan 2. Myanmar 3. China 4. Afghanistan 5. Srilanka
Ans. 4

25. The first solar city in India will ber………….?

1. Delhi 2. Kanpur 3. Hyderabad 4. Faridabad 5. Gurgoan
Ans. 5

TEST IX
1. On Jun 24, 2009 how many days agenda fixed by the textiles ministry to achieve the
results in the ministry?
1. 200 2. 300 3. 400 4. 50 5. 100
ANS. 5

2. The food crisis affect ……….cr people according to F.A.O statistics?

1. 50 2. 250 3. 400 4. 175 5. 100
ANS. 5
3. Of the following statements which one is correct to the Bailout package declared by
the center on Dec 8, 2008
1. the refund of service tax paid by the exporters 2. 2% exemption of export taxes on
labour oriented textile units. 3. to withdraw the export duty on iron
4. 20,00 cr more allocation on non- plan expenditre. 5. all of the above.
ANS. 5

4. The new system to be adopted to measure the poverty in India depends on the
measurement of……?
1. calorie food taken2. mobile usage3. holding of personal computer4. power usage 5.
consumer Goods
ANS. 5

5.Who among the following is called the ‘AgniPutri’?

1. Kalpana Chawla 2. sunitha Chawla 3. Thessy Thomas 4. Navaneetham Pillai
5. Nandini Sharma
ANS. 3

6. The recipient of Mahatma Gandhi Peace Award is……..?

1. Mujibar Rahaman 2. Abdul Kalam 3. Bhim sen joshi 4. Salman Rushdie5.
Angan san Suki
ANS. 5

7. Who among the following received Miss India World wide 2009 crown?
1. Priyanka Chopra 2. Gayatri Devi 3. Nikitasha Marha 4. Ektha Chowdary5.
Shilpa shetty
ANS. 3

8. The recipient of Man Booker prize-2009 is……..?

1. Salman Rushdie 2. Romilla Thaper 3. Amrthya Sen 4. suresh Tendulkar5.
Elisa Manroe
ANS. 5

9. The first ever Wizdon award received by a lady player is ………..?

1. mithila raj 2. serena Williams 3. koneru hampi 4. saina shewal 5.
Carley Taylor
ANS. 5
10. Bandra Worli bridge having the length of 5.6k.m is named after………?
1. indira Gandhi 2. rajiv Gandhi 3. p.v.narasimha rao 4. sivaji 5. bal
thakre
ANS. 2

11. Pradhan mantri Adarsa grama yojana provides the integrated development where the
50 % of people belongs to?
1. S.C 2. S.T 3. OBC 4. O.C 5. PHC
ANS. 1
12. Jatiya Mahila saksharatha mission aims to reduce the literacy among the woman
by…….% as per 2009-10 budget?
1. 10 2. 60 3. 15 4. 25 5. 50
ANS. 5
13. According to Rail budget 2009-2010, Kanchan para-Harishahar railway complex
produces…….?
1. railway bogies 2. sleeper chair 3. signals 4. electric engines 5.
bogies engines
ANS. 1

14. Which planet has the features of comet, found by the scientists in our galaxy?
1. kepler 2. cereus 3. Homea 4. Pluto 5. Nandini
ANS. 3

15. Of all the following which one is correctly matched?

1. Hot money—drain of money from the country of lower interest to higher rate of
interest
2. cheap money- when the C.R.R. is reduces the avail of money become more at less rate
of interest
3. Fiat money- the money minted by the government and has recognition
4. Call money- A bank take money from another bank for 14 days to meet urgent needs.
5. All of above
ANS. 5

16.the only batallion (88) of woman of……………is exiting in the world?

1. Assam Rifiles-18352. N.C.C.-1948 3. Territorial Army- 1949 4. B.S.F.-1965
5. C.R.P.F-1939
ANS. 5

17. 70 k.m range surface to air missile manufactured with technology of Isreal is………?
1. Trishul 2. Pithchora 3. prudvi 4. tejas 5. astra
ANS. 2

18. On jan 29-31, ;where the National Oil seeds summit was held?
1. delhi 2. mumbai 3. chennai 4. banglore 5. Hyderabad
ANS. 5
19. Credit khajana is the new scheme of …to provide the further loan of home loan, if
there is no default payments?
1. HDFC 2. SBH3. SBI 4. AXIS 3. CORPORATION BANK
ANS. 3

20. Of the following statements which one is wrong relating to Rail Budget 2009-2010?
1. Yuva A.C train for the journey of E.B.C unemployed youth
2. Ijjath is the new scheme allowing to get monthly pass of Rs. 25, for working force in
the un-organised sector
3. Maa-Mathi-Manush to provide the ticket service in postofffices 4. Mushkil Assan to
give tickets in mobile vans
5. All of the above
ANS. 5
21. Of all the following statements which one is correct relating to Financial Budegt
2009-2010?
1. the daily wage increased from Rs. 80 to Rs. 100 for the N.R.E.G.P benificiares
2. to bring 50% of village woman under the coverage of DWACRA ( OR) SHG
3. One post- One pension for the 12 lakh ex-servicemen
4. All B.P.L families get the coverage of insureance from Rashtriya Swastya Bhima
Yojana 5. All of above
ANS. 5

22. Father of Al Bombs test fired by …on sep 11, 2007, deemed to be the biggest non-
nuclear bombs in the world?
1. Russia 2. U.S.A 3. France 4. Italy 5. Australia
ANS. 1
23. Find the wrongly matched one relating to the new states demand in India?
1. Sourastra- Maharastra 2. Andhra Pradesh- Telangana 3. Kurg- Karnataka
4. Bundelkhand- U.P & M.P 5. Bhojpur- U.P,
Bihar, Chattisgarh
ANS. 1
24. Integrated Naval Development In Rural Areas And Model Muncipal Areas
( INDIRAMMA) is the scheme of..?
1. Bihar 2. Maharstra 3. Tamilnadu 4. Andhra Pradesh 5. Punjab
ANS. 4

25. The first Asian Rubber dam is constructed on the river ………………… in the state
of…………..?
1. Gomathi – Uttar pradesh 2. Kaveri- Tamilnadu 3. Narmada-M.P
4. Satlaj- Punjab 5. Jhamjavathi- Andhra
Pradesh
ANS. 5

TEST X
1. Which programme started by the central government to keep the consumer awareness recently?
1. grahak sraddha suno 2. suvidha sradhha suchan3. Jago grahak jago 4. suno grahak suno 5.none
ANS. 3

2. Nag is the missile launched from ………………to …………..?

1. air air 2. air surface 3. water water 4. surface surface 5. air surface
ANS. 4

3. The biggest Air show ‘AERO INDIA- 2009 between feb 11-15 2009 held in…….?
1. Hyderabad 2. pune3. kanpur 4. Chennai 5. Bangaluru
ANS. 5

4. The 153 member in WTO is…?

1. Vatican 2. san marino 3. Taiwan 4. Singapore 5. Capavardhe
ANS. 5
5. International Translationary Research (ITR) is being established at?
1. Mumbai 2. pune3. kanpur 4. Hyderabad 5. Bangaluru
ANS. 4
6. The navy day is celebrated on Dec 4th in India to memories the victory over…….port?
1. Islamabad 2. Dhaka 3. Alexandria 4. Rome 5. Karachi
ANS. 5

7. India registers ………..rank in the Aids cases?

1. 1 2. 2 3.5 4. 3 5. 10
ANS. 4

8. Which police constable held the Mumbai terrorist main accused Kasab, though he is firing towards
him?
1. Vijay karkare 2. Ahluwalia monte 3. Tukaram Ombley`4. Ampte 5. Madhu vallia
ANS. 3

9. India establishes 500 MW thermal plant in Srilanka in ……….?

1. Colombo 2. Male 3. Jafna 4. Trinkomali 5. Andrews Mathur
ANS. 4

10.Polavaram benefits the states of………….?

1) Andhra Pradesh, Orissa, Chattisgarh 2) Orissa, Tamilnadu, Maharastra 3) Andhra Pradesh,
Orissa, Tamilnadu 4) Jammu & Kashmir 5) Tamilnadu, Orissa, Maharastra
ANS. 1

11. Tropex is the joint army, navy and air force exercise of India held at Madhavapur beach in the state
of ……?
1. Andhra Pradesh 2. Tamilnadu 3. Orissa 4.Karnataka 5. Gujarat
ANS. 5
12. Four C.F.L lamps are provided to each person under the Atal Bijali Bachat Yojana. This is the
scheme of …?
1. Himachal Pradesh 2. Orissa 3. Maharstra 4. Tamilnadu 5. Maharastra
ANS. 1

13. The biggest multi-specialty private hospital was established at ……….by name Kokilaben
Dhirubai Ambani Hospital?
1. Kolkatta 2. Jaipur 3. Pune 4. Hyderabad 5. Mumbai
ANS. 5

14. The only small nuclear power is established at………to use the local uranium mines?
1. Kerala 2. Maharastra 3. Kerala 4. Tamilnadu 5. Meghalaya
ANS. 5

15.Gay marriages are not allowed under sec………… of I.P.C, though the high court of Delhi
highcourt said it was against to the human and constitutional rights?
1. 302 2. 377 3. 498 4. 34 5. 100
ANS. 2

16. Samarupa and Gaima are the names of……….?

1. cloning sheep 2. cloning camel 3. cloning cheetah 4. cloning calf 5. cloning cat
ANS. 4

17. Asian Center For Human Rights estimated that there are more custodial deaths in the state
of……..?
1. Maharastra 2. Uttarpradesh 3. Andhra Pradesh 4. West Bengal 5. Bihar
ANS. 1

18. Which nation among the following one saved by moving the one hour day time to save the labour
apart from Pakistan in south Asia?
1. Bhutan 2. Nepal 3. Bangladesh 4. India 5. India
ANS. 3
19. The highest number of grand slams ( 15) won by ……….. Who over ride the record of Pete
samprass?
1. Rafel Nadal2. Serena Williams 3. Liander Peas4. Martina Navrathilova 5. Rojer Fedarar
ANS. 5

20. We are the world’ is the music album, really planned to be made by Michel Jockson and
…………?
1. Bhimsen Joshi 2. Lata Mangeshkar 3. A.R.Rahaman4. Ustad Bismalla Khan 5. chowrasia
ANS. 3

21. The 9th Pravasi Bharathiya Sadassu was held at………?

1. Bangalore 2. kanpur 3. Newdelhi 4. Mumbai 5. Chennai
ANS. 5
22. Rajiv Gandhi Manava seva Award received by…………………?
1. Anna Hazare 2. Aravinda Adiga 3. Ajaria Korabandi 4. Gundappa viswanath 5.
Manek singh Ahluwalia
ANS. 3

23. Which commercial gaint received the prestigious Golden Peacock Award—2009?
1. HDFC 2. AXN 3. TATA 4. RELIANCE5. KHTHAN
ANS. 3

24. Which candidate from Tamilnadu took the gunnies record for the contesting for 100 times
recently?
1. Subramanyam swamy 2. jayalalitha 3. K.Padmarajan 4. Pandian 5. Karunanidhi
ANS. 3

25………..replaced sister Nirmala for the post of Superior General of Mother Theressa missionaries of
Charities?
1. devikasena 2. alfonsa 3. Prema 4. theressa 5. Karunamayi
ANS. 3

CURRENT GENERAL KNOWLEDGE: AUGUST

2009
ABBREVIATIONS
IFRS: International Financial Reporting Standards.
AERA: Airport Economic Regulatory Authority

AWARDS
Magsaysay Awards, 2009
The Board of Trustees of the Ramon Magsaysay Award Foundation (RMAF) has
selected six individuals from Burma, China, India, the Philippines, and Thailand to
receive Asia’s premier prize. The Awardees are:

Krisana Kraisintu, from Thailand. She is being recognized for “her placing
pharmaceutical rigor at the service of patients, through her untiring and fearless
dedication to producing much-needed generic drugs in Thailand and elsewhere in the
developing world.”

Deep Joshi, from India. He is being recognized for “his vision and leadership in
bringing professionalism to the NGO movement in India, by effectively combining
‘head’ and ‘heart’ in the transformative development of rural communities.”

Yu Xiaogang, from China. He is being recognized for “his fusing the knowledge and
tools of social science with a deep sense of social justice, in assisting dam-affected
communities in China to shape the development projects that impact their natural
environment and their lives.”
Antonio Oposa, Jr., from the Philippines. He is being recognized for “his path-
breaking and passionate crusade to engage Filipinos in acts of enlightened citizenship
that maximize the power of law to protect and nurture the environment for
themselves, their children, and generations still to come.”

Ma Jun, from China. He is being recognized for “his harnessing the technology and
power of information to address China's water crisis, and mobilizing pragmatic, multi-
sectoral, and collaborative efforts to ensure sustainable benefits for China's
environment and society.”

Ka Hsaw Wa, from Burma. He is being recognized for “his dauntlessly pursuing non
violent yet effective channels of redress, exposure, and education for the defence of
human rights, the environment, and democracy in Burma.”

The RMAF confers the award annually for those in Asia, who have achieved excellence
in six categories, viz government service; public service; community leadership;
journalism, literature and creative communication, arts; peace and international
understanding; and emergent leadership. Actually, there were only the first five
categories in the beginning and only from 2000 the category of emergent leadership
was added using a grant received from the Ford Foundation.

Ashok Chakra, 2009

Major Mohit Sharma, who laid down his life fighting militants infiltrating from Pakistan
into J&K in March 2009, has been awarded with Ashok Chakra, the highest peacetime
gallantry award of the country, along with Major D. Sreeram Kumar.

Major Sharma of Ghaziabad belonged to the Elite 1 Para special forces of the Army. He
was deputed to Rashtriya Rifles in Kashmir. He along with four others was killed while
fighting terrorists in the Hafruda forest of Kupwara district. This was one of the biggest
attempts to infiltrate by militants even before the snow in the high mountain passes
had melted. The militants were heavily armed and it led to a fierce gun-battle. Four
terrorists were killed, two of them by Major Sharma despite being fatally injured.

Major D. Sreeram Kumar of Artillery regiment is presently serving in Assam Rifles. He

was awarded in recognition of his service in the Operation Hifazat in Manipur. He
eliminated 12 and apprehended 23 terrorists and recovered 12 weapons. He has also
created a vibrant intelligence network.

Kirti Chakra, 2009

Major Amit Oscar Fernandes of Maratha Light Infantry, Major Deepak Tewari of
Electronic and Mechanical Engineers, Naik Rishikesh Gurjar of Rajput Regiment have
been awarded Kirti Chakra for exceptional gallantry shown during anti-insurgency
operations in J&K, along with paratrooper Shabir Ahmad Malik of 1 Para Regiment,
who laid down his life in gun-battle in Kupwara.

Jnanpith Award, 42nd

Eminent Sanskrit poet Satya Vrat Shastri has been presented the prestigious 42nd
Jnanpith Award. The award was conferred to him by the Princess of Thailand, Maha
Chakri Sirindhorn, for his “outstanding contribution to the enrichment of Indian
literature.” He is the first Sanskrit poet to be conferred the award since its inception.

The award recognises Dr. Shastri for introducing a number of new genres in Sanskrit
writing such as autobiography, diary and collections of letters in verse. His magnum
opus, “The Ramayana: A Linguistic Study”, is the first ever linguistic appraisal of the
Valmiki Ramayana and also of any existing Sanskrit work.

Stockholm Water Prize, 2009

Indian sanitation expert Bindeshwar Pathak has been awarded the Prize, the most
prestigious award for outstanding achievement in water-related activities. The founder
of Sulabh Sanitation Movement in India, Pathak is known around the world for his
wide-ranging work in the sanitation field. He has worked to improve public health, has
advanced social progress, and has improved human rights in his home nation and
other countries.

The Stockholm Water Prize, which was first presented in 1991, includes a $150,000
award and a crystal sculpture. It honours individuals, institutions or organisations
whose work contributes broadly to the conservation and protection of water resources
and improves the health of the planet's inhabitants and ecosystems.

The Economic Times Awards for Corporate Excellence

Business Leader of the Year: Anand Mahindra, Vice-Chairman and MD, Mahindra Group
of Companies.

Businesswoman of the Year: Vinita Bali, MD, Britannia Industries.

Entrepreneur of the Year: G.V.K. Reddy, Chariman, GVK Group.

Emerging Company of the Year: Idea Cellular.

Global Indian of the Year: Ram Charan, Management Guru and Thinker.

Corporate Citizen of the Year: The Energy and Resources Institute (TERI).

Company of the Year: Hero Honda.

Business Reformer of the Year: Bihar Chief Minister Nitish Kumar.

Policy Change Agent of the Year: Jean Dreze, Instrumental in conceptualising NREGS.

Lifetime Achievement Award: Keshub Mahindra, Chairman, Mahindra & Mahindra.

BOOKS
Jinnah—India, Partition, Independence
Written by former Union Minister Jaswant Singh, the book looks into the history of
India’s partition and mentions that “Jinnah was a great man but he had been
demonised in India.” And that “Nehru and Sardar Patel were equally responsible for
India’s partition.” Mr Jaswant Singh was expelled from BJP for showering praises on
Jinnah in his book.

CYBER SPACE
Addicted to networking? Beware of Koobface
If you have been getting tempting messages with video links in your accounts in social
networking sites such as Facebook, Twitter, Myspace, Bebo, Friendster and Hi5,
beware. Any attempt to download the promised video will make you another victim of
Koobface, a worm that could steal critical and personal information from your
computer. The India Computer Emergency Response Team has warned that Koobface,
a play on the name of social networking site Facebook, comes with an enticing tagline
and spreads by spamming the contacts of the victim on networking sites.

With more than 3 million members of Facebook in India alone, Koobface’s potential for
wreaking havoc on the country’s computer systems is immense—a fact that has
prompted the government to issue the warning alert.

Typically, Koobface victims get a message from one of their contacts inviting them to
click on a video link. The link leads you to a site mimicking the video-sharing site,
Youtube. Once there, you are asked whether you want to download a software needed
to watch the video. If you click ‘yes’, the worm gets activated. It not only disrupts your
internet experience by sending your searches on engines like Google elsewhere and
returning garbled replies, it also steals data that may have been left in your
computer’s memory.

If you have already been Koobfaced the only way to protect your machine is to delete
all files and registry keys that have been added by the worm.

DEFENCE
Bhishma—First Indian built T-90 tank
The first batch of India’s indigenously built state-of-the-art T-90 main battle tanks,
named Bhishma, with features like protection from nuclear attack, were handed over
to the army on August 24, 2009 at a function in Avadi, Tamil Nadu. The tanks are
being manufactured at the Heavy Vehicles Factory (HVF).

HVF plans to produce 100 tanks per year. Indian army has already around 700 of
these frontline tanks in service and contract has been signed for purchase of another
400 off the shelf.

The tanks have features like capability to fire guided missile, in addition to the
conventional ammunition, using the same main gun barrel and guided weapon system
and ballistic computer facilities to ensure accurate firing of both conventional
ammunition and guided missiles.

It is equipped with 125 mm smooth bore gun, 12.7 mm anti-aircraft machine gun and
7.62 mm co-axial Machine gun supported with high accuracy sighting systems, and
automatic loader for higher firing rate. The induction of the tanks is an important
milestone for the Indian army and a step towards attaining self-sufficiency in its
preparedness.

EXPEDITION
Lady Army officers scale Siachen peak
A team comprising only lady officers of the Indian Army scaled the Siachen glacier on
August 15, 2009, making it the first ladies team to have reached the highest battlefield
in the world. Located in north-eastern J&K, Saichen glacier is totally snow- bound
throughout the year and is one of the treacherous stretches of land with deep crevices
and steep walls of ice.

The lady officers, led by Major Meghna Aktadikar, are from the corps of engineers. The
expedition comprised the following officers: Major Neha Bhatnagar, Major Pradiya
Kulkarni, Major Meghna R, Capt Shalini Datta, Capt Pushpa Kumari, Capt RP Parashar,
Lt Namrata Rathore, Lt Girija Mohalkar, Lt Vijay Laxmi Thakur, Lt Garima Pal and Lt
Neelam Rathore.
PERSONS
Joshi, Deep
Sixty- three-year-old social activist Deep Joshi has been decorated with the 2009
Ramon Magsaysay Award, known as Asia’s Nobel Prize. He has been recognised for
“his vision and leadership in bringing professionalism in the NGO movement in India”.

He has been working to transform the lives of over a lakh families covering as many as
3,000 villages, many of them in Naxalite-affected areas. His activities aree spread over
the Naxalite-affected belt of Jharkhand, Bankura and Purulia regions of West Bengal
and the Maoist-dominated Chhattisgarh and Orissa.

Joshi founded in 1983 the Professional Assistance for Development Action (PRADAN),
an NGO, along with one Vijay Mahajan. The NGO recruited university-educated youth
from campuses across the country and groomed them for grass-root work through a
rigorous year-long apprenticeship which combined formal training and guided practice
in the field.

Living and working directly with India’s poorest communities, PRADAN staff
empowered village groups with technical, project implementation, and networking
skills that increased both their income-generating capabilities and their actual family
earnings.

A Masters in engineering from the Massachusetts Institute of Technology (MIT) and a

Masters in Management from the Sloan School, MIT, Joshi worked with the Systems
Research Institute, the Ford Foundation and has nearly 30 years of experience in the
field of rural development and livelihood promotion. He also advises the government
on poverty alleviation strategies.

Hatoyama, Yukio
He has been elected as the Prime Minister of Japan. He is a fourth-generation politician
and grandson of a former Prime Minister and belongs to a rich family that founded tyre
giant Bridgestone.

He has a doctorate in engineering from Stanford University in the US and is married to

a former musical actress who has also published several cook books.

He was elected to the lower house for the first time in 1986 on a LDP ticket. In 1993
he walked away from LDP and floated New Party Sakigake, which ousted LDP in
elections later that year. The pro-reform coalition, however, fell after eight months
over a funding scandal. In 1996-99, he helped found the Democratic Party of Japan
and became its leader. In 200 he stepped down as DPJ leader over criticism of his plan
for a merger with some opposition groups. In 2009 he again tookover the helm of DPJ
and led it to victory.

Mr Hatoyama wants to improve people’s lives through increased welfare spending. He

is known less for economic policies than for his stance on security and diplomacy. He
has advocated revising the pacifist constitution to acknowledge Japan’s right to defend
itself and maintain a military for that purpose.

PLACES
Berlin
The World Athletics championship, 2009 was held in Berlin, Germany.
Mangala Oil fields
The Mangala oil fields of Cairn India in Barmer, Rajasthan were inaugurated by Prime
minister Manmohan Singh on August 29, 2009. The fields will help India curtail its oil
import bill, which is to the tune of $20 billion, to a large extent. Mangala’s peak
production of 1.25 lakh barrels per day (bpd) will be reached in the first half of 2010.
Along with two other fields—Bhagyam and Aishwarya—the aggregate peak production
of Cairn India will be 1.75 lakh bpd, which is 20 per cent of India’s domestic
production. The three fields are expected to save the country $1.5 billion annually as
import bill over the next 10 years. It would also earn the government $30 billion
through taxes, royalties and profit petroleum.

PROJECTS
India to set-up third base at Antarctica
Twenty-five years after it established Dakshin Gangotri, the first permanent research
station in the South Polar Region, India is all set to build the third such centre in
Antarctica to take up cutting-edge research in various fields. The new station,
tentatively named Bharti, is scheduled to be operational by 2012, making India a
member of an elite group of nine nations that have multiple stations in the region.
Argentina, Australia, Chile, China, France, Russia, the UK and US have multiple
stations in Antarctica.

Dakshin Gangotri, set up in 1984, was buried in ice and had to be abandoned in 1990,
a year after India set up Maitri, the second station. The National Centre for Antarctic &
Ocean Research (NCAOR), Goa, will set up the new station on Larsmann Hill, 3,000 km
from Schirmacher Oasis, where Maitri stands. While Maitri was more than 100 km from
the Antarctic Sea, Bharti will be on a promontory by the sea.

Bharti, like Maitri, will also conduct research on seismic activity, climate change and
medicine. The station will be a compact structure of 30x50 metres, accommodating 25
scientists. While living in Antarctica, where temperatures range from -89 degrees
Celsius in winter to -25 degrees Celsius in summer, can be tough, constructing a
permanent structure is a huge challenge.

Experiments in extreme cold climates, as in the polar region, have contributed

immensely to scientific developments. India was admitted to the Scientific Committee
on Antarctic Research (SCAR), an international body that coordinates scientific
activities in the region, on October 1, 1984. India holds the vice-chairman’s post in the
panel.

Bhuvan: Indian version of Google Earth

On August 12, 2009, ISRO took a leap into satellite imagery of geographical regions
with the launch of ‘Bhuvan’, a mapping application website like Google Earth. The day
marked the 90th birth anniversary of the father of Indian space programme Vikram
Sarabhai.

Hyderabad-based National Remote Sensing Agency (NRSA), a part of ISRO, had a lead
role in designing and developing ‘Bhuvan’. NRSA scientists developed the content
using data provided by Indian satellites like Resourcesat-1.

‘Bhuvan’, which in Sanskrit means the earth, also focus on rural and thematic
applications like wasteland mapping and terrain profile. It contains weather details like
humidity levels. The new portal shows data which has been approved by the
government of India. Viewers can zoom into ‘Bhuvan’ maps up to 10 metres compared
to Google Earth’s 200 metres and Wikemapia’s 50 metres. The website can be
accessed on www.bhuvan.nrsc.gov.in.

SPACE RESEARCH
Cabinet nod to GSAT-10 satellite
The government today gave its clearance for the development of a communications
satellite that would have a GPS-based navigation system. The approval came at the
meeting of the Cabinet chaired by Prime Minister Manmohan Singh. The design and
development of GSAT-10 spacecraft would cost Rs 735 crore with a foreign exchange
component of Rs 634 crore, the government said. The 3.3-tonne satellite, one of the
heavier spacecrafts to be developed by space agency ISRO, will replace INSAT 2E and
INSAT 3B, an official release said.

The GSAT-10 satellite will have 12 high power Ku-band transponders, 12 C-band and
12 extended C-band India coverage transponders that would create additional capacity
for direct-to-home like operations.

Design of next phase of moon mission finalised

India has completed the design of Chandrayaan-2, its next mission to the moon—this
time in collaboration with Russia—that would have a Lander and Rover which can
collect samples of the lunar soil and analyse them and send back the data.

The Chandrayaan-2 mission would have an orbital flight vehicle, constituting an Orbital
Craft (OC) and a Lunar Craft (LC), which would carry a soft landing system up to Lunar
Transfer Trajectory (LTT).

The target location for the Lander-rover would be identified using data from
instruments of Chandrayaan-1.While ISRO will be developing the orbiter, it will be
Russia's job to make the Lander and Rover. Additional scientific payloads would be
acquired from international scientific community.

ISRO-NAS jointly look for water on moon

Five minutes before midnight on August 20, India’s Moon mission, Chandrayaan-1
crossed an important milestone when it teamed up with NASA’s Lunar Reconnaissance
Orbiter in search of water ice.

Both the spacecraft moved simultaneously picking up data. It was a brief flight leading
to an exchange of information and there was a combined analysis of both the data.
Both the spacecraft flew at a velocity of about 1.6km per second and surveyed an area
on the Moon’s north pole which is 18 km across.

The historic combined flight was tracked by ISRO’s deep space network at Byalalu,
Bangalore and NASA’s deep space network and Applied Physics Laboratory in
Maryland, US.

Both spacecraft were equipped with radar instruments—Mini-Sar (Synthetic Aperture

Radar) on Chandrayaan-1 and Mini-Rf on LRO. The two instruments targeted the same
spot on the Moon from different angles, with Chandrayaan-1’s radar transmitting a
signal which was reflected off interior of Erlanger Crater. This was picked up by LRO.

Chandrayan-1 mission aborted

The abrupt end of the moon mission Chandrayaan-I on August 29, 2009, has
 temporarily buried India’s dream of bettering China in the field of moon exploration.
While the Indian mission was called off 10 months after it was launched and 14
months before its scheduled termination, the Chinese mission Chang’e 1 (launched on
October 24, 2007), after having completed its original tenure of one year, was given a
four months extension and was finally terminated on March 1, 2009.

Importantly, Japan, the other Asian space faring nation, has also done well in the field
of moon exploration. Kaguya, the Japanese probe launched on September 14, 2007,
successfully orbited the moon for 20 months before it was made to crash on the lunar
surface on June 10, 2009.

Chandrayaan-I was launched on October 22, 2008. It had to be called off due to
snapping of radio link.

SUMMIT
World Tiger Summit
India will host World Tiger Summit in 2010 where wildlife experts from various
countries are expected to congregate to deliberate on conservation of diminishing
striped cats in the wild. "Rajasthan will be hosting the World Tiger Summit at
Ranthambore in October or November.

About 200 experts from across the countries are to participate in the summit, including
those from the world renowned organisation, Global Tiger Initiative.

With over 44 royal big cats, Ranthambore Tiger Reserve will be showcased as a role
model to delegates attending the summit being held for the first time in the country
which is home to around 1,400 endangered species.

SPORTS NEWS IN BRIEF: JANUARY-FEBRUARY

2009
ARCHERY
National Championship, 16th: Jharkhand topped the medal tally followed by Services and Assam.
Jharkhand bagged five medals—two gold, two silver, one bronze.

ATHLETICS
Mumbai Marathon, 2009: Eager to put behind November 2008’s terror attacks in Mumbai, more
than 43,000 people thronged the streets to participate in the Standard Chartered Mumbai Marathon.
In men’s section Kenya’s Kenneth Mun Gara won. In the women’s event, Ethiopia’s Haille Kebebush
was winner.

CRICKET
West Indies-New Zealand One-Day Series:New Zealand beat the West Indies by five wickets
via Duckworth-Lewis in a rain-shortened fifth and final ODI to win the five-match series 2-1.

Australia-South Africa One-Day Series: Australia were dethroned as the number one team in
one-dayers by South Africa who demolished the hosts by 39 runs in the fifth and final match to
clinch the ODI series with an emphatic 4-1 margin.
Jacques Kallis became the second all-rounder to aggregate 10,000 runs and bag 200 wickets or
more in ODIs. Sri Lanka’s Sanath Jayasuriya was the first to achieve this feat.
Pakistan-Sri Lanka One-Day Series: Sri Lanka bull-dozed Pakistan by 235 runs in the third and
final match to win the three-match series 2-1. Pakistan’s defeat was the second biggest in terms of
runs suffered by a Test-playing nation in ODIs.

Sri Lanka-India One-Day Series: An all-round display by the Indian team helped them to win the
five-match series 4-1. M.S. Dhoni became the most successful Indian captain with this series
victory. Dhoni also established an Indian record for most wins (9) in succession. For Sri Lanka,
Jayasuriya became the oldest centurion in one-day internationals and went past the 13,000-run
mark during the series.

Ranji Trophy: There was no stopping the Mumbai juggernaut from rolling to victory in the 75th
edition of Ranji Trophy. Mumbai crushed Uttar Pradesh by 243 runs to record their 38th title win in
the competition.

Duleep Trophy: West Zone defeated South Zone to win the Duleep Trophy for the 15th time.

CYCLING
National Track Cycling Championship: Kerala won the overall team championship Trophy.
Punjab was placed second. The men’s Trophy was bagged by Railways, while Punjab stood second.
In women’s section the Kerala eves gained the top slot while Manipur was second.

FOOTBALL
Ronaldo crowned player of the year: Cristiano Ronaldo has been crowned world player of the
year, making him the first Europe- based footballer to win the FIFA award since its inception in
1991. It gives the 23-year-old a clean sweep of all recognized major individual and club honours
available to a footballer.

TABLE TENNIS
National Championship, 70th: Olympian Achanta Sharath Kamal retained the men’s singles title
for the Maharaja Pithapuram Cup, while top seed K. Shamini lifted the Travancore Cup by winning
the women’s singles competition.

TENNIS
Australian Open, 2009:
Men’s Singles title: Rafael Nadal beat Roger Federer.
Women’s Singles title: Serena Williams beat Dinara Safina (Russia).
Men’s Doubles title: Bob and Mike Bryan beat Mahesh Bhupathi and Mark Knowles.
Women’s Doubles title: Serena and Venus Williams.
Mixed Doubles title: Mahesh Bhupathi and Sania Mirza.
The win gave Sania her first Grand Slam title and Bhupathi his seventh mixed-doubles crown and
11th Grand slam title.
Yuki Bhambri created history by becoming the fourth Indian to win a junior Grand Slam title, when
he won the boys’ final.

Chennai Open 2009: Marin Cilic of Croatia beat Somdev Devvarman to win the title. Americans
Eric Butorac and Rajeev Ram won the doubles title.

SPORTS NEWS IN BRIEF: FEB-MARCH 2009

ATHLETICS
Greatest Race on Earth: The Indian marathon team topped the South and South East Asia region
standings for the third year in a row and ended up overall third in the fifth edition of the Greatest
Race on Earth challenge which concluded with the Hong Kong marathon. India’s 25-year-old Army
man Angad Kumar Prasad finished men’s full marathon on seventh spot in the final leg of Standard
Chartered Greatest Race on Earth challenge. Angad’s effort kept India on top in the South Asia and
West Asia challenge for the fifth year in a row.

CRICKET
West Indies-England Test Series: England suffered a humiliating innings and 23-run defeat at
the hands of the West Indies in the first Test when the tourists were bowled out for 51 runs in their
second innings. West Indies cricket was plunged into fresh controversy when the second Test
against England had to be abandoned after just 10 balls because of a dangerous outfield. England
and West Indies drew
the third Test when play was called off with four overs still to bowl.

Pakistan-Sri Lanka Test Series: The series had to be called-off after a terrorist strike on Sri
Lankan team during the Lahore Test match. Earlier, the first Test had ended in a tame draw with
both teams hitting in access of 600 runs in their first innings. Younis Khan hit 313 to help Pakistan
achieve a record total. For Sri Lanka, Mahela Jayawardene and Thilan Samaraweera posted world
record partnership of 437 runs for the fourth wicket. Sri Lanka has now inscribed their name on
three world records for the second, third and now fourth wickets. Jayawardene, on the other hand,
has now been involved in two separate world record partnerships, a landmark which he shares with
Donald Bradman.

South Africa-Australia Test Series: Fiery fast bowling from Mitchell Johnson and Peter Siddle led
Australia to a 162-run win over South Africa in the first Test. Australia thus took 1-0 up in a three-
match series that will determine which of the two teams tops the world Test rankings.

Australia-New Zealand One-Day Series: Australia lost the first two matches but then snapped
their five consecutive ODIs losing streak by registering a thrilling 32-run victory over New Zealand
in the must-win third tie. Australia then went on to a six-wicket win in the fourth match to level the
five-match series 2-2. Australia retained the Chappell-Hadlee Trophy after the crucial fifth and final
One-Day International was called off because of heavy rain.

Sri Lanka-India Twenty20 Match: The Pathan brothers helped India win the match by three
wickets. India were looking down the barrel at 115-7, needing another 57 runs from 29 balls, when
Yusuf was joined by his brother Irfan and both just blasted their way out of trouble.

New Zealand-India One Day Series: Shrugging off the T20 defeats, India bounced back with a
solid batting display to spank New Zealand by 53 runs on the basis of Duckworth-Lewis method in
the rain-marred first one-dayer. The second match was abandoned due to rain. India then hit record
392 runs with the help of sparkling 163 not out by Sachin Tendulkar to win the third match by 58
runs and take a unassailable 2-0 lead.

New Zealand-India Twenty-20 Series: Suresh Raina’s fighting unbeaten 61 went in vain as
world champions India began their New Zealand tour on a dismal note with the hosts thrashing
them by seven wickets in the first Twenty-20 match. New Zealand followed this win with a last ball
win in the second match, thus taking the series 2-0.

Duleep Trophy: Ramesh Powar wrecked South Zone with a 10-wicket match haul as West Zone
lifted their 17th Duleep Trophy title.

GOLF
Women’s Indian Open: 19-year-old Thai girl, Phatlum Pornanong emerged winner of the
tournament. She pipped her nearest rival Kim Hae-Jung of Korea by two strokes to defend the title.

HOCKEY
New Zealand-India Test Series: Captain Sandeep Singh and Dilip Tirkey struck a goal each in the
second half to guide India to a 2-0 win over New Zealand in the final Test and win the series 2-0.

SPORTS NEWS IN BRIEF: MARCH-APRIL 2009

ARCHERY
India trio clinch recurve gold: Mangal Singh Champia, Jayanta Talukdar and Rahul Banerjee
combined to clinch their second successive gold in the men’s recurve team event as India signed off
with three medals in the Archery World Cup Stage I at Santo Domnigo in Dominican Republic.
Dola Banerjee settled for a third place finish in the women’s recurve, while women’s compound
team of Jhano Hansdah, Bheigyabati Chanu and Manjudha Soy also finished third.

BADMINTON
Yonex-Sunrise Indian Open: Men’s Singles: Taufik Hidayat, Indonesia. Women’s Singles:
Hongyan Pi, China. Men’s doubles: Tan Fook Choong and Wan Wah Lee, Malaysia. Mixed doubles:
Flandy Limpele and Vita Marissa, Indonesia.

CRICKET
Women’s World Cup: Caroline Atkins top-scored with 40 runs and Nicky Shaw took four wickets
for 34 as England beat New Zealand by four wickets to claim the women’s World Cup. India finished
third.

West Indies-England One-Day Series: England ended their ragged tour of the West Indies on a
high when an Andrew Flintoff hat-trick helped them beat the hosts by 26 runs in a rain-shortened
match to win the one-day series 3-2.

New Zealand-India One Day Series: Virender Sehwag (125 not out) smashed the fastest ODI
century by an Indian to fashion the team’s commanding 10-wicket win in the fourth match, also
giving India their first one-day cricket series win in New Zealand. Sehwag’s 60-ball hundred
bettered Mohammad Azharuddin’s 62-ball century against the Kiwis at Baroda. India won the series
3-1.

New Zealand-India Test Series: India still needed to take two wickets before the third Test was
called off and declared to have ended as a draw. However, India came out stronger by winning the
three-Test series 1-0. This was India’s first Test series win in New Zealand after 41 years. Earlier,
Harbhajan Singh scalped six wickets to guide India to their first Test triumph on New Zealand soil in
33 years as the visitors spanked the Kiwis by 10 wickets in the first Test. The second Test ended in
a draw.

South Africa-Australia Test Series: Australia clinched a series win over South Africa and
remained top of the world rankings after completing a crushing 175-run victory in the second Test.
South Africa left-arm spinner Paul Harris took six wickets as the Proteas beat Australia by an innings
and 20 runs to win the third Test but lose the three-Test series 2-1. The first Test had been won by
Australia.

Gautam Gambhir breaks Gavaskar’s record for most runs after 25 tests: Gautam Gambhir’s
167 in the third Test against New Zealand helped him reach 2,271 runs (average 54.07), the most
by an Indian in his first 25 tests, eclipsing Sunil Gavaskar’s 2,256 (avg 52.47).
Dravid becomes world record holder of most catches: India’s Rahul Dravid became the world
record holder of most catches in Tests, surpassing Australian Mark Waugh, when he caught New
Zealand opener Tim McIntosh at third slip for his 182nd catch on the fourth day of the third and last
Test against New Zealand.

Deodhar Trophy: West Zone beat East Zone to win the title.

Vijay Hazare Trophy: Tamil Nadu defeated Bengal by 66 runs to win the Premier Cup.

Australia receives Test Championship Mace: Australian captain Ricky Ponting received the
International Cricket Council’s (ICC) Test Championship Mace for his team’s top finish in table in the
2008-09 calendar year.

TENNIS
Serena Williams voted player of the year: Serena Williams has been voted the WTA tour player
of the year for the second time. Dinara Safina was selected most improved player for 2008, and
Zheng Jie of China was chosen comeback player of the year. Top-ranked Cara Black of Zimbabwe
and Liezel Huber of the United States were chosen doubles team of the year. Caroline Wozniacki of
Denmark was selected newcomer of the year.

SPORTS NEWS IN BRIEF: MAY 2009

GAMES
Twenty20 to feature in Guangzhou Asian Games: India and Pakistan have promised to send
their best cricket teams as the sport makes its maiden Asian Games appearance in Guangzhou in
2010. “India and Pakistan were the drivers. Asia’s four Test-playing nations have committed to
sending their best available teams. Both men’s and women’s teams will participate in a Twenty20
format contest, with India, Pakistan, Sri Lanka and Bangladesh automatically qualifying, along with
host nation China.

CRICKET
Deccan Chargers win IPL, 2009: In a surcharged finale before a packed stadium, Deccan
Chargers soared to the summit of the Twenty20 Indian Premier League from 2008’s zenith by
overcoming Royal Challengers Bangalore by six runs. The best bowling of the match by Anil Kumble,
who claimed four for 16, thus, went in vain, as Challengers choked in their run chase.
Golden player of the league: Adam Gilchrist.
Orange Cap for highest run getter of the tournament: Mathew Hayden.
Purple Cap for highest wicket taker of the tournament: R.P. Singh.
U-23 success of the tournament: Rohit Sharma.
Fairplay award: Kings XI Punjab.

England-West Indies Test series: England began a Test series on a winning note for the first
time in 14 attempts and won at Lord's for the first time since 2005 as they wrapped up a convincing
10-wicket success against West Indies in the first Test. Seamers James Anderson and Tim Bresnan
ripped through the West Indies batting order to lead England to victory by an innings and 83 runs in
the second Test and win the series 2-0.

England-West Indies One-Day series: Paul Collingwood hit an unbeatedn 47 and took 3 wickets
for 16 runs as England beat West Indies by six wickets in the second match to take a 1-0 lead. The
first match was washed out due to rain. England then beat West Indies by 58 runs in the third and
final one-day international in Birmingham, to win the series 2-0.

Pakistan-Australia One-Day Series: Shahid Afridi exposed Australia’s frailties against spin to
help Pakistan to a four-wicket win in the first One-Day International at the Dubai Stadium. Andrew
Symonds starred in Australia’s much improved performance with both bat and ball as they beat
Pakistan by six wickets in the second day-night international. Clarke and Shane Watson combined
for an unbroken 197-run stand, to give Aussies a 3-1 lead in the five-game series, ensuring their
first One-day series win since September 2008, when they beat Bangladesh in Darwin. Kamran
Akmal hit an aggressive century to overshadow Shane Watson’s hundred as Pakistan beat Australia
by seven wickets in the fifth and final match.

South Africa-Australia One- Day Series: Herschelle Gibbs hit a sparkling century and Dale Steyn
took four wickets to lift South Africa to a series-clinching 61-run win over Australia in the fourth
one-dayer. The hosts clinched the series 3-1.

India to host Champions League in India: Twelve teams will contest in the inaugural Champions
League Twenty20 (CLT20) tournament to be played in India from October 8-23, 3009. The
tournament will feature three teams from India (two finalists and the top league finishing team), top
two domestic T20 teams from South Africa, England, Australia and the domestic T20 Champions
from New Zealand, West Indies and Sri Lanka. The Royal Challengers, Deccan Chargers and Delhi
Daredevils will represent India, Victoria and New South Wales will represent Australia, while the
Cobras and Eagles will the two South African teams.The tournament is a joint venture by the Board
of Control for Cricket in India (BCCI), Cricket Australia (CA) and Cricket South Africa (CSA).

Wisden’s first-ever Dream Test XI:Wisden, the highly respected cricket publication, has named
Virender Sehwag as the leading cricketer in the world for 2008. The five previous winners have
been Ricky Ponting, Shane Warne, Andrew Flintoff, Muttiah Muralitharan and Jacques Kallis.

Mahendra Singh Dhoni has been named as the captain of its first-ever Dream Test XI which has five
Indians in the ranks. India’s rich vein of form found ample reflection in Wisden’s first-ever dream XI
which includes Sehwag, Dhoni, Sachin Tendulkar, Harbhajan Singh and Zaheer Khan.

India has the largest representation in the Test squad, followed by Australia (Ricky Ponting and
Mitchell Johnson) and South Africa (Graeme Smith and Dale Steyn) who have two each.

Flamboyant batsman Kevin Pietersen is the lone English player in the XI, while the West Indies is
represented by run-machine Shivnarine Chanderpaul. Smith is Dhoni’s deputy in the side.

BADMINTON
Sudirman Cup: The 2009 Sudirman Cup (World Mixed Team Badminton Championships) was held
in the Guangzhou Gymnasium of Guangzhou, China. Hosts China crushed Korea 3-0 in the final to
win the cup.

India to host World Badminton Championship: Players from 50 countries will participate in the
World Badminton Championship, to be held at the Gachibowli stadium in Hyderabad, from August
10 to 16, 2009. India would be hosting this mega event for the first time. The World Badminton
Championship, which is held every year, except in an Olympic year, was last held in Kuala Lumpur
in 2007, and will move to Paris in 2010.

BOXING
World Boxing Council Flyweight title: Japan’s Daisuje Naito defeated China’s Xiong Zhaozhong
to retain the title.

FOOTBALL
Champions League: Lionel Messi produced something special in the form of a rare headed goal to
help Barcelona beat Manchester United 2-0 in the Champions League final and establish itself as the
unofficial best team on the planet. The win was Barcelona’s third in Europe’s premier club
competition, following their earlier successes in 1992 and 2006 and completed a treble after their
successes in La Liga and the King’s Cup.

UEFA Cup: An extra-time goal from Brazilian mid-fielder Jadson earned Shakhtar Donetsk a 2-1
victory over Werder Bremen in the UEFA Cup final to clinch the Ukrainian side’s first European title.

English League, 18th: Manchester United captured their 18th English league title when they
secured the point they needed in a 0-0 draw with Arsenal.

GOLF
US Masters, 2009: Argentina’s Angel Cabrera, who had not cracked the top five in any event in
more than a year, won the 73rd Masters in a sudden-death playoff with some unlikely help from a
tree. Cabrera, who had not won a title since claiming his first major at the 2007 US Open at
Oakmont, made a par on the second playoff hole, to defeat Kenny Perry, who at 48 could have
become golf’s oldest Major champion.

HOCKEY
Asia Cup: South Korea won their third Asia Cup hockey title after beating three-time champions
Pakistan 1-0 in a hard-fought final in Malaysia. China claimed third place after a 7-6 penalty
shootout with Malaysia. Tushar Khandekar pumped in two late goals as defending champions India
routed Japan 5-1 to finish a lowly fifth in the seven-nation Asia Cup.

Azlan Shah Cup: India beat hosts Malaysia 3-1 to win their fourth Sultan Azlan Shah title in
Malaysia. Previous victories were in 1985, 1991 and 1995. This was India’s first title win abroad
since 2003. Sandeep Singh was named the player of the tournament. He was also the top goal
scorer, hitting 6 out of India’s 12 goals. Arjun Halappa was named the player of the final.

SAILING
Rohini becomes first Indian woman to win a international medal: Chennai-based sailor
Rohini Rau has won the bronze medal in the Laser radial event of the 2009 Izola Spring Cup in
Slovenia, becoming the first Indian woman to finish on the podium in an international Olympic class
Regatta. Elisabetta Macchini of Italy landed the gold followed by Austrian Katharina Roeggla.

SHOOTING
Gagan touches peak: Gagan Narang, the 26-year-old Hyderabad sharpshooter has become the
first Indian to bag a 50 m rifle three position gold in a World Cup, with an aggregate of 1264.0
points at Changwon (South Korea). His burgeoning kitty now has three World Cup gold and two
bronze. He was also the first Indian to clinch a Beijing Olympic quota berth when he bagged his first
gold at the 2006 World Cup in Guangzhou in the 10 m rifle event.

Sawant shoots bronze at Munich world cup: Tejaswani Sawant won a bronze in the women’s
three position rifle event of the shooting World Cup at Munich. She is the first time World Cup
finalist.

SWIMMING
Alain Bernard sets swimming world record: France’s Alain Bernard set a new 100 m freestyle
swimming record with a time of 46.94 seconds at the French championships.

TENNIS
Yuki wins 2nd ITF title on the trot: Yuki Bhambri gave ample display of his class as the Delhi
teen sensation when he won his second successive ITF Men’s Futures title after edging past top
seed Raven Klassen.

SPORTS NEWS IN BRIEF: JUNE 2009

BADMINTON
Sania wins Indonesian Open, scripts history
Ace woman shuttler Saina Nehwal has scripted history by becoming the first Indian to win a Super
Series tournament after she clinched the Indonesian Open title with a stunning victory over higher
ranked Chinese Lin Wang in Jakarta. Saina clinched her maiden Super Series title beating Wang 12-
21, 21-18, 21-9 in an edge-of-the-seat thriller. Her triumph is the best ever performance by any
Indian woman and at par with All England Championship titles won by Prakash Padukone and her
current coach Pullela Gopichand.

BOXING
Asian Boxing Championship, 2009
Suranjoy Singh brought an end to a 15-year drought by winning a gold medal for India in Asian
Boxing Championships that concluded in Zhuhai, China. World youth champion T. Nanao Singh also
came very close to winning a gold but missed it by a whisker. Jai Bhagwan also had to settle for
silver as he lost his final bout. With one gold, two silver and four bronze medals, India finished third
after China and Uzbekistan in the elite boxing competition. It is India’s best performance in the
meet since 1982 when India had won two gold, two silver and two bronze in Seoul.

CRICKET
Twenty-20 World Cup
Pakistan magnificently rose from the dead at Lords cricket ground to clinch the world title. Pakistani
cricket had faced many trials and tribulations of late and this win proved all the more special.
Defying odds, they cakewalked to victory over Sri Lanka by eight wickets with eight balls to spare in
the final. Shahid Afridi, echoing his performance in the semi-final, with a decisive undefeated 54
from 40 balls, in addition to a tidy return of one for 20 in fours overs with the ball, proved to be the
major difference between the two teams.
Player of the tournament: Tilekratne Dilshan, Sri Lanka. Player of the Final: Shahid Afridi, Pakistan.
Highest Run scorer of the tournament: Tilekratne Dilshan, Sri Lanka (317 runs). Highest Wicket
taker of the tournament: Umer Gul, Pakistan (13 wickets).

Twenty-20 Women World Cup

England women scripted history by winning a World Cup double after their comprehensive six-
wicket victory over New Zealand in the inaugural Twenty20 World Cup final held in London.
England, who had won the ODI World Cup in Australia in March 2009, produced a clinical bowling
and batting performance against the Kiwis at the historic Lord’s.

West Indies-India One Day series

Yuvraj Singh set India up for a 20-run victory over West Indies in the first One-day International at
Kingston, Jamaica, with a boundary-laced 131 that propelled India to 339 for six from their 50
overs. In reply West Indies were 319 all out. An unbeaten 85 from Runako Morton guided West
Indies to a convincing eight-wicket victory over India in the second match to tie the four-match
series at 1-1. The visiting Indian team made a modest 188 after a patient 95 from skipper
Mahendra Singh Dhoni rescued them from 82 for eight.

FOOTBALL
Santosh Trophy
Goa won their fifth national title for the Santosh Trophy via tie-breaker by defeating Bengal. The
tournament was held at Chennai.

Confederations Cup
Brazil defended their Confederations Cup title with a crushing come-from-behind 3-2 victory to
inflict a cruel loss on tenacious underdogs, the United States. It was their third Confederations Cup
crown following triumphs in 1997 and 2005. The tournament was held in South Africa. Luis Fabiano
has emerged from the Confederations Cup as one of Brazil’s new golden boys. The Sevilla striker
was the tournament top scorer with five goals, including his crucial brace in the final.

GOLF
US Open, 2009
Lucas Glover of the United States won the 109th US Open at Bethpage Black. He finished with a
three-over 73 for a total of four-under 276, two strokes clear of Phil Mickelson. It was just the
second PGA victory in the career of the 29-year-old from South Carolina and came as a stunning
upset. Ross Fisher of England finished top European alone in fifth place.

Jeev Asia’s highest ranked golfer

Jeev Milkha Singh is currently the highest ranked Asian golfer, according to the latest official
rankings. Jyoti Randhawa was the next Indian at 139, while Orlando-based Arjun Atwal, who
remains out of action due to injuries, is 276th. Shiv Kapur is at 198, while S.S.P. Chowrasia was at
403.

HOCKEY
Women Champions Challenge-II Tournament
Indian women’s hockey team won the inaugural Women’s Champions Challenge-II tournament
defeating Belgium 6-3 in exciting final in Kazan (Russia). Ireland took the bronze, scraping past
Ukraine 2-1.

Rani Rampal was the match-winner for India with four goals. She also emerged as the top scorer of
the event. Indian skipper Surinder Kaur was declared the best player of the tournament. India have
now qualified for the Champions Challenge-I, the winner of which will qualify for the elite league:
Champions Trophy.

TENNIS
French Open 2009
Roger Federer’s quest to win the French Open, the only Grand Slam title which had eluded him,
finally ended when he won the French open singles title by defeating Robin Soderling. In winning his
14th Grand Slam title, which equals Pete Sampras’ all-time record, the 27-year-old Swiss also
became only the sixth man to win all four of the game’s major crowns.

Svetlana Kuznetsova won her second grand slam title when she outplayed fellow Russian and world
number one Dinara Safina 6-4 6-2 to win the women’s singles title. The seventh-seeded
Kuznetsova, US Open champion in 2004, dictated the points consistently and prevailed after 74
minutes on Centre Court to deny Safina a first grand slam title.

Leander Paes won his ninth Grand Slam title when he and his Czech partner Lukas Dlouhy overcame
a first set lapse to tame Wesley Moodie and Dick Norman in the final of the French Open men’s
doubles. The third seeded Indo-Czech pair defeated the giant-killing South African-Belgian pair 3-6,
6-3, 6-2 to win their first Grand Slam title together. It is almost after a gap of three years that Paes
has won men’s doubles title at a Major, since winning the 2006 US Open with Martin Damm. Paes
had earlier won the French Open in 1999 and 2001 with his estranged compatriot Mahesh Bhupathi.

Liezel Huber and Bob Bryan of the United States beat Vania King of the United States and Marcelo
Melo of Brazil to win the mixed doubles championship. The title is Bryan’s second consecutive in
mixed doubles at the French Open and his sixth Grand Slam mixed doubles title overall, each with a
different partner. For Huber, it was her first mixed doubles Grand Slam title. She has won four
women’s doubles major championships.

Gerry Weber Open

Tommy Haas upset second-seeded Novak Djokovic in the Gerry Weber Open final. The 31-year-old
German became the oldest ATP tour winner in 2009 after collecting his 12th career title in a
tournament seen as a major warm-up for Wimbledon.

WEIGHTLIFTING
Dey first Indian Junior lifter to win medal in world championship
National record holder Sukhen Dey has become the first Indian male lifter in decades to win a medal
at the world level by bagging bronze in the World Junior Weightlifting championship in Bucharest,
Romania.

Sushil strikes gold in German GP

Star Indian wrestler Sushil Kumar bounced back in style by winning the gold in the German Grand
Prix Freestyle and Greco Roman tournament in Dortmund. He won the gold in the 66 kg freestyle
category. Apart from Sushil, Rahul Balasaheb Aware also bagged a gold medal in the 55 kg freestyle
category as India signed off with five medals, including two gold, one silver and two bronze. Rajiv
Tomar won the silver medal in the 120 Kg freestyle division, while Ravinder Singh and Ramesh
Kumar bagged the bronze in the 60 kg Greco Roman and 74 kg freestyle categories, respectively.

SPORTS NEWS IN BRIEF: JULY 2009

CHESS
Mainz Classic—Anand’s 11-year streak is snapped
Viswanathan Anand’s loss in Mainz for the first time in 11 years and the world champion’s blotted
‘rapid’ record have invited commentaries suggesting the end of an era. Worse, Anand could not
even make it to the final of the four-player event.

Undisputed champion in rapid chess for a decade, Anand had won the Mainz Chess Classic in one to
one contests against Vladimir Kramnik, Judit Polgar and Magnus Carlsen in the last eight years. He
had also won the World Rapid Championships held under the auspices of the world body (FIDE) a
few times before the event went out of the FIDE calendar. Barring the two significant rapid losses in
tie-breakers against Gata Kamsky (Hyderabad, 1993/94) and Anatoly Karpov (Lausanne, 1998),
Anand was always the master of all that he surveyed in the shorter version of Chess.

CRICKET
England-Australia Test series
Andrew Flintoff bowled with furious pace and sustained hostility to propel England to their first
Ashes win over Australia at Lord’s since 1934. Flintoff bowled unchanged from the Pavilion end to
finish on the honours’ board with five for 92, as England wrapped up the second Ashes Test by 115
runs.

In the first Test, James Anderson and Monty Panesar staged one of cricket’s great escapes as
England clung on for a dramatic draw. England’s last-wicket duo batted together for 40 minutes to
deny Ashes holders Australia what seemed a certain victory.

Sri Lanka-Pakistan One Day series

Sri Lanka cruised to a 2-0 series lead with a comfortable six-wicket victory against Pakistan in the
second one-day international. Left arm pace bowler Thilan Thushara claimed three wickets as Sri
Lanka bowled out Pakistan for a below-par 168 in 47 overs.

Sri Lanka-Pakistan Test series

Sri Lanka snatched an incredible win over Pakistan in the first cricket Test, defending a meagre 167
runs to claim the series opener by 50 runs. Pakistan resumed the fourth day within sight of a
convincing win, needing 97 more runs to win with eight wickets in hand and two days to remaining.
But Sri Lankan left-arm spinner Rangana Herath and seamer Thilan Thushara upended the Pakistan
innings, striking at regular intervals to hasten a batting collapse.

Pakistan suffered a spectacular collapse in the second Test also. Sitting pretty at 285-1 just before
lunch on the third day, Pakistan crashed to 320 all out after the break to leave Sri Lanka a victory
target of 171 for a decisive 2-0 lead in the three-match series. Sri Lanka cruised home by seven
wickets with two days to spare.

Kumar Sangakkara hit an unbeaten century to steer Sri Lanka to a draw in the final Test against
Pakistan and win his first series as captain. Sri Lanka clinched the series 2-0, their first at home
against Pakistan after five unsuccessful attempts, and provided Sangakkara with a winning start as
captain after he took over from Mahela Jayawardene in April 2009. Of the previous five series
between the two nations on Sri Lankan soil, Pakistan had won three and drawn two.

West Indies-Bangladesh Test Series

Mahmudullah completed a memorable debut Test when he cruelly exposed West Indies’ frailty to
spin, and bowled Bangladesh to a historic 95-run victory in the opening Test. Bangladesh’s victory,
which came about four years after their solitary Test win against Zimbabwe on home soil in
Chittagong, was made more remarkable because their new captain and primary fast bowler
Mashrafe Mortaza spent the entire West Indies innings off the field nursing a knee injury.

Bangladeshi stand-in captain Shakib Al Hasan then led from the front with 96 not out as his side
beat the West Indies in the second and final Test and clinch the series 2-0 series. The win was the
biggest thing for Bangladesh in nine years.

West Indies-India One Day series

India sealed their fifth One-day series win on the trot after persistent rain ruined the fourth and
final One-dayer against the West Indies. The tourists won the four-match series 2-1 following
victories in the series opener in Jamaica and the third match played at Gros Islet.

CYCLING
Tour de France
Spaniard Alberto Contador emerged as the new cycling boss when he wrapped up his second Tour
de France title on the Champs-Elysees on Lance Armstrong’s return to the race.

GOLF
Bhullar lifts Asian tour title
Gaganjeet Bhullar, 21-year-old Kapurthala lad, pocketed a cheque for $63,400 as he clinched his
first Asian Tour title edging past 28-year-old Australian Adam Blyth by two strokes in the Indonesia
President Invitational in Jakarta.

HOCKEY
England-India Test series
England beat India 3-2 after trailing 0-2 at one stage and 1-2 at half-time in the third and final
hockey test at Birmingham to win the series 2-1 after winning the first Test 3-1 and losing the
second 3-4.
MOTOR SPORTS
Lewis Hamilton wins Hungarian GP
Formula One world champion Lewis Hamilton won the Hungarian Grand Prix to mark McLaren’s
return to form after a slump of 10 races without success. Kimi Raikkonen, driving the only Ferrari in
the race after Brazilian team mate Felipe Massa suffered a serious head injury in qualifying, was
second.

TENNIS
Wimbledon 2009
After a marathon slugfest lasting 4 hours and 16 minutes, Roger Federer edged out American
Andy Roddick to win his sixth Wimbledon title and embrace history by becoming the only player in
the history of the game to have won 15 Grand Slam titles. The last set, played over 30 games and
lasting 1 hour and 35 minutes was also the longest ever set in a men’s Grand Slam final.

Serena Williams beat sister Venus 7-6, 6-2 to win the women’s singles title. She won her third
singles crown at Wimbledon, following a six-year gap.

Ninth seeded Mark Knowles (Bahamas) and Anna-Lena Groenefeld (Germany) stunned top
seeds and favourite Leander Paes (India) and Cara Black (Zimbabwe) 7-5, 6-3 to win the mixed
doubles title.

Serena Williams teamed with big sister Venus to beat Rennae Stubbs and Samantha Stosur of
Australia to win the women’s doubles title.

Daniel Nestor and Nenad Zimonjic lifted their second consecutive men’s doubles title at the
expense of top seeds Bob and Mike Bryan.

SPORTS NEWS IN BRIEF: AUGUST 2009

ATHLETICS
World Athletics Championship, 2009
The 12th IAAF World Championships in Athletics were held in Berlin, Germany from Auguast
15–23, 2009. The majority of events took place in the Olympiastadion, while the marathon
and race-walking events started and finished at the Brandenburg Gate.

United States, with 10 gold, 6 silver and 6 bronze medals, topped the medals tally, followed
by Jamaica, Kenya, Russia, Poland and Germany.

Sprint king Usain Bolt proved lightning does strike twice as he smashed his own 100m world
record, exactly one year after setting the previous benchmark at the Beijing Olympics. Bolt
took 33 strides down the track at Berlin’s Olympic Stadium and sliced the largest chunk off
the world record since electronic timing was introduced. Bolt pushed himself and the result
was a stunning time of 9.58 seconds in the men's 100-metre final: eleven-hundredths of a
second better than his game-changing mark of 9.69 in Beijing.

His world record performance was all the more remarkable as the 22-year-old was involved
in a car crash in Jamaica in April 2008 when his car overturned in a ditch off a highway.
Bolt had a small operation on his left foot, but his lightning strides showed nothing to be
wrong with his feet.
With Olympic and world championship gold medals now in his possession, Bolt said he was
tempted to complete the set of major championship medals by running at the CWG in New
Delhi in October, 2010.

Jamaica’s sprinting dominance continued in sizzling style when Olympic champion Shelly-
Ann Fraser clocked 10.73 seconds to win the women’s world 100 metres. Now, only
Florence Griffith-Joyner and Marion Jones remain among those who have run faster than
Fraser.

Usain Bolt also shattered his own 200 metres world record to win gold at the world
championships in a breathtaking 19.19 seconds and secure his place as the greatest
sprinter ever seen.

BADMINTON
World Championship, 2009
Olympic champion Lin Dan has become the first badminton player to clinch a hat-trick of
world titles, beating fellow Chinese Chen Jin in straight games to win the men's singles
title of this mega event held at the Gachibowli stadium, Hyderabad. Lin had won the earlier
World Championship in 2006 and 2007, apart from winning four All-England titles in 2004,
2006, 2007 and 2009.

In all-Chinese women’s singles final Lu Lan beat Xie Xingfang in straight sets to win the
world title.

Danish mixed pair Thomas Laybourn and Kamilla Rytter Juhl thrashed the two times World
Champions from Indonesia, Nova Widianto and Lilyana Natsir to win the mixed-doubles
title.

The Chinese pair of Fu Haifeng and Cai Yun defeated Koreans Lee Young Dae and Jung Jae
Sunge to win the men’s doubles title.

China’s Zhao Tingting and Zhang Yawen won the women’s doubles final against Cheng
Shu and Zhao Yunlei, also of China.

Jwala-Diju create history

V. Diju overcame a back strain and Jwala Gutta battled a stiff left (playing) arm to create
history by becoming the first Indian mixed doubles pair to win a Grand Prix Gold. The third-
seeded Indians pulled off a stunning 24-22, 21-18 win over Indonesians Hendra Aprida
Gunawan and Vita Marissa in the final of the Chinese Taipei Gold Grand Prix and walked
home with $11,560 as prize money.

BOXING
Vijender is World No. 2
Vijender Singh has been ranked second in the 75 kg category by the International Boxing
Association. Akhil Kumar (57 kg) and Jitender (51 kg) are placed 9th and 13th in their
respective categories. In the 48 kg category, Thokchom Nanao Singh is at fifth spot.

CRICKET
England-Australia Test series (The Ashes)
England regained the Ashes with a sweeping 197-run victory over Australia in the fifth test
at the Oval, despite a battling century from Michael Hussey which threatened to take the
game into a fifth day.
Australia, who needed at least a draw to retain the Ashes they won back by crushing
England 5-0 in 2006-7, were dismissed for 348 in their second innings after being set a
record 546 for victory. The series was tied 1-1 after Australia won the fourth test at
Headingley within three days.

Earlier, Australia had batted with grim determination through the final day to earn a draw in
the third Ashes Test against England. Centurion Michael Clarke and Marcus North shared a
partnership of 185 and Shane Watson and Michael Hussey also made patient half-centuries
in a total of 375 for five which ensured they would go into the fourth test only 1-0 down in
the series.

Australia completed a crushing victory over England in the fourth test to level the Ashes
series at 1-1. The touring side ended England’s entertaining lower order resistance 20
minutes after lunch on the third day, Mitchell Johnson bowling Graham Onions to dismiss
the hosts for 263 and seal victory by an innings and 80 runs.

Sri Lanka-New Zealand Test Series

An illness-depleted New Zealand were bamboozled in the face of pace and spin as Sri Lanka
cruised to a 202-run victory in the first Test to lead the two-match series. The Kiwis, set an
improbable target of 413 runs, collapsed to 210 all out in their second innings before tea on
the fifth and final day at the Galle International Stadium.

Sri Lanka clinched second spot behind South Africa in the official rankings as they swept
aside New Zealand by 96 runs in the final cricket Test to sweep the series 2-0. Left-arm
spinner Rangana Herath claimed five wickets as the Kiwis, set an improbable victory target
of 494 runs, were bowled out for 397 in their second innings just before tea on the fifth day.

Sri Lanka-Pakistan One Day series

Teenager Umar Akmal smashed an unbeaten 102 off 72 balls as Pakistan won the fourth
one-dayer by 146 runs to record their first win on a dismal tour of Sri Lanka. Umar's maiden
international century and a dogged 89 from skipper Younus Khan lifted Pakistan to 321-5
after the tourists elected to bat in the day-night match at the Premadasa stadium.

Zimbabwe-Bangladesh One-Day Series

Bangladesh raced to a five-wicket defeat of Zimbabwe in the fifth match to win the series 4-
1. Zimbabwe’s Charles Coventry equalled the highest individual One-day
International score, but it also became the highest ODI score in a losing cause.
Coventry’s big-hitting party was gate-crashed by Tamim Iqbal, who helped Bangladesh
wrap up the five-match series. Coventry blasted an unbeaten 194 to equal former Pakistan
opener Saeed Anwar’s 12-year record as Zimbabwe piled up 312-8 in their 50 overs. But
Bangladesh opener Tamim then hit his country’s highest individual score of 154 as the
tourists took victory with 13 balls to spare.

FOOTBALL
Nehru Cup, 2009
Subrata Paul was hero and saviour rolled into one for India. The mercurial goalkeeper made
three brilliant saves in a nerve-wracking penalty shootout as India overcame a strong Syria
6-5 to retain the ONGC Nehru Cup. The tournament was held at New Delhi.

GOLF
Buick Open
Tiger Woods cruised to a bogey free, final round three-under 69 and a three shot victory to
lift the Buick Open title for a third and possibly final time. The troubled Detroit auto-maker
 is expected to pull out its sponsorship which will lead to the tournament disappearing from
the PGA Tour calendar in 2010.

World Golf Championship-Bridgestone Invitational

Tiger Woods created history on the par-70 greens of Firestone Country Club clinching the
World Golf Championships-Bridgestone Invitational for a record seventh time at Akron in
Ohio (USA). India’s Jeev Milkha Singh tumbled down the ladder playing his worst card of the
event (six over 76) to finish tied 64.

PGA Championship, 91st

Y.E. Yang, a 37-year-old South Korean who was in PGA Tour qualifying school nine months
ago, has become the first Asian-born player to capture a major title. Even more memorable
was that he beat Tiger Woods to win the title.

MOTOR SPORTS
Major success for Force India
After 29 false starts, the Vijay Mallya-owned Force India finally nixed the hoodoo and scored
their maiden Formula One points with Giancarlo Fisichella finishing second in the Belgian
Grand Prix. The 36-year-old Italian driver, rumoured to have one foot in Ferrari, shunned
extravagance to run a flawless race and trailed Kimi Raikkonen’s Ferrari, which had
snatched the lead using the Kinetic Energy Recovery System, all the way for a podium finish
and earns eight valuable points. The Italian finished less than a second behind Raikkonen.

TENNIS
Rogers Cup
Mahesh Bhupathi and his Bahamian partner Mark Knowles continued their rampaging form
to lift their fourth ATP title together, beating seventh seeds Max Mirnyi and Andy Ram in
straight sets in the finals of $ three million Rogers Cup. The third seeds won 6-4, 6-3 to
clinch their first title at an ATP World Tour Masters 1000 tennis tournament.

Jan Feb 2009

APPOINTED; ELECTED; Etc.

Radha Vinod Raju: He has been appointed as the first of the newly formed National
Investigative Agency (NIA).

K.C. Verma: He has been appointed as the Research & Analysis Wing (RAW) Chief.

A.S. Gill: He has been appointed as the Chief of CRPF.

S.S. Khurana: He has taken over as the Chairman of Railway Board.

DISTINGUISHED VISITORS

Nursultan Nazarbayev: President of Kazakhstan. He was the Guest of Honour at the Republic
Day parade 2009.

Hamid Karzai: President of Afghanistan.

Rear Admiral Ahmed Mohammed al-Sabah al-Tenaji: Commander of the United Arab Emirates
Navy.
Gerry Ritz: Agriculture Minister of Canada.

David Miliband: Foreign Secretary of UK.

Moctar Ouane: Foreign Minister of Mali.

Ameen Faisal: Defence and National Security Minister of Maldives.

DIED

R. Venkataraman: Former President of India. He was 98.

Ranbir Singh Hooda: The last surviving member of the Constituent Assembly of
India.

EVENTS

JANUARY
17—A suicide car bomb kills a US service member and four Afghan civilians in an attack outside
a US military base and the German Embassy in the Afghan capital Kabul.
19—Jharkhand is placed under President’s rule following resignation of Chief
Minister Shibhu Soren after losing a by-poll. The Assembly is put under suspended animation to
allow formation of a new government.
20—Barack Hussein Obama takes oath as the 44th President of USA, shattering American racial
barriers as the first black leader of the nation.
23—India slaps a ban on import of toys from China for a period of six months over fears of
safety of children, following bans being imposed by many countries after some Chinese toys
were found to be toxic.

FEBRUARY
1—At least 15 poicemen are killed as a group of 40 Maoists ambushes a squad in the jungles of
Dhanora tehsil in Maharashtra’s Gadchiroli district.
2—India signs a safeguards agreement with the International Atomic Energy Agency (IAEA) in
Vienna on as part of India’s obligations to enable full civil nuclear cooperation with rest of the
world. Out of its 22 civilian reactors, India has agreed to open up 14 to
regular IAEA inspections by 2014.
8—More than 200 people and entire towns razed in the worst wildfire disaster
in Australian history. Australian
government blames arsonists for the fires.
9—A suicide bomber kills 28 people in Mullaitivu, Sri Lanka.
11—Three near-simultaneous attacks
on government offices, carried out
by the Taliban, claimed 26 lives and injure over 55 people in Kabul, Afghanistan

MILESTONES

Jeev Milkha Singh: He is the first Indian golfer ever to endorse a course, at the Kensville Golf
and country club in Ahmedabad. Golfing legends like Arnold Palmer, Greg Norman and Tiger
Woods have all lent their names to golf courses.
Anand Mahindra: Managing Director of Mahindra Group, he co-chaired the World Economic
Forum’s annual meeting in Davos, Switzerland, joining global leaders like Kofi Annan, the
former UN Secretary-General and media moghul Rupert Murdoch as a co-chair.

Kavita Barala: Seventy-five years after its formation, the Indian Air Force (IAF) has finally
broken the gender barrier with this young woman reaching out to the skies as its first woman
flying officer.

Marais Erasmus: When he walked out with Bangalore’s Shahvir Tarapore in West Zone’s 100th
Duleep Trophy fixture against East Zone, he became the first overseas umpire to officiate in a
domestic match in independent India. He belongs to South Africa.

Sankha Samanta: Since 1947, the postal department has issued 33 commemorative stamps on
Gandhi, in addition to a handful of more standard definitives. Of those 33, Samanta has
designed 14, making him the most prolific Gandhi stamp artist.

Mar-Apr 2009
APPOINTED; ELECTED; Etc.

Zillur Rahman: He has been elected as the President of Bangladesh.

Benjamin Netanyahu: He has been elected as Prime Minister of Israel.

Navin Chawla: He has been appointed as the Chief Election Commissioner of India. He will take
over from April 20, 2009.

Sharat Sabharwal: He has been appointed as India’s High Commissioner to Pakistan.

Meera Shankar: She has been appointed as India’s Ambassador to USA.

Pavan K. Varma: He has been appointed as India’s Ambassador to Bhutan.

Dhanendra Kumar: He has been appointed as Chairman of the Competition Commission of

India (CCI).

N.P.S. Aulakh: He has been appointed as the Director General of National Security Guards
(NSG).

DISTINGUISHED VISITORS

Boni Yayi: President of Benin.

Ban Ki-Moon: Secretary-General of United Nations.

Richard Holbrooke: US special envoy

Robert Mueller: Chief of Federal Bureau of Information (FBI) of USA.

EVENTS
FEB

9—A female Tamil Tiger suicide bomber, hiding among a group of civilians fleeing Sri
Lanka’s war zone, blows herself, killing at least 28 persons and wounding 90.
11—Eight Taliban gunmen wearing suicide vests attack three Afghan government
buildings in a coordinated assault, killing 20 people in the heart of Kabul.
12—Two big communications satellites collide in space, in the first-ever crash of two
intact spacecraft in orbit, shooting out a pair of massive debris clouds.
13—One of India’s flagship trains, Coromandel Express, crashes out of its tracks,
leaving at least 15 people dead and more than 140 injured.
16—In a first-ever such accident a British and a French nuclear submarines—HMS
Vanguard, a Royal Navy’s Trident class, and French Navy’s new Le Tricomphant—
both carrying nuke warheads, are reported to have collided in the Atlantic Ocean, but
there was no loss of life.
18—A Pakistani journalist with Geo TV, Musa Khan Khel, is shot dead in Matta area
of Swat Valley in the North West Frontier Province (NWFP), two days after Islamabad
allowed the Taliban to impose Shariat in the area.
20—A suicide bomber kills 30 people in the northwestern Pakistani city of Dera
Ismail Khan.
—At least 38 people are wounded aftern two Tamil Tiger rebel planes raid Colombo,
capital of Sri Lanka, and bomb the country’s tax headquarters.
25—Bangladesh Border Guards (BDR) launch a dramatic mutiny, taking officers
hostage and sparking a gun-battle that leaves many dead.
26—The Mutiny by Bangladesh Rifles (BDR) ends in Dhaka and six other locations
across Bangladesh. The stand-off leaves an estimated 100 people dead.
The term of the 14th Lok Sabha comes to a friendly end
28—The keel of India’s first Indigenous Aircraft Carrier (IAC) is laid at the Cochin
Shipyard.

MARCH
2—The Election Commission of India announces the dates for holding elections to the 15th Lok
Sabha. The general elections would be conducted in five phases between April 16 and May 13,
2009
3—In a brazen attack on a bus carrying Sri Lankan cricket team in Lahore, a dozen masked
gunmen wound seven players and a British coach and kill at least six Pakistanis, including five
police escort.
6—Liquor baron Vijay Mallya bids over Rs 10 crore to buy the lot of personal belongings of
Mahatma Gandhi that were put on auction by Los Angles- based film-maker James Otis.
—India successfully tests interceptor missile to engage and destroy “enemy” missile.

Mile stones
Prasoon Joshi: Executive chairman of McCann Worldgroup India, he has been named as part of
the ten-member Cannes Titanium and Integrated Jury 2009, a first for an Indian ad
professional.

Justice Kamaljit Singh Garewal: of the Punjab and Haryana High Court, he has been elected to
UN Appeals Tribunal (UNAT) for a seven-year-term beginning July 1, 2009.
Sourabhee Debbraman: of Tripura has bagged the Indian Idol crown 2009. She is the first girl
to win the contest.

Events March-Apr 2009

APPOINTED; ELECTED; Etc.

Najib Razak: He has been appointed as the Prime Minister of Malaysia.

Air Chief Marshal Pradeep Vasant Naik: He has been appointed as the Chief of Air Staff of
Indian Air Force.

Navin Chawla: He has been appointed as the Chief Election Commissioner of India with effect
from April 20, 2009.

Air Marshal D.C. Kumaria: He has been appointed as the first-ever Director-General Operations
at the Air Headquarters, New Delhi.

Pramod Bhasin: Chief Executive of business process outsourcer Genpact Ltd, he has been
appointed the Chairman of National Association of Software and Services Companies
(NASSCOM).

Venu Srinivasan: TVS Motor Com-pany CMD, he has been elected President of the
Confederation of Indian Industry (CII) for the year 2009-10.

Mohan Bhagwat: He has been elected as the chief of Rashtriya Swyamsevak Sangh (RSS).

Justice G.R. Majithia (Retd): He has been appointed as the Chairman of the National Wage
Board for journalists and non-journalist newspaper employees.

Meera Shankar: She has been appointed as the Ambassador of India in USA.

Sharat Sabharwal: He has been appointed as India’s High Commissioner in Pakistan.

Helen Clark: Former New Zealand Prime Minister she has been named as the head of the
United Nations Development Programme (UNDP).

Sister Prema: She has been elected the new Superior General of the Missionaries of Charity,
founded by Mother Teresa.

RESIGNED

Abdullah Badawi: Prime Minister of Malaysia.

 DISTINGUISHED VISITORS

Michelle Bachelet: President of Chile.

Events
MARCH
8—The countdown to the 2010 Commonwealth Games begins with a dazzling function to kick
off the Queen’s Baton Relay at India Gate.
16—President Asif Ali Zardari of Pakistan agrees to reinstate deposed Chief
Justice Iftikhar Chaudhry following intense pressure caused by the “Long March” announced by
former Prime Minister Nawaz Sharif.
18—President’s Rule is imposed in Meghalaya.
23—History is created in Mumbai as Tata Motors launches the world’s least expensive car,
Nano.
27—At least 70 people are killed as a suicide bomber blows himself up inside a Pakistani
mosque in Jamrud town, near the Afghanistan border.
28—Remote Pacific island communities turn off the lights as they kick off Earth Hour 2009, a
global event to highlight climate change. The event also sees landmarks around the world go
dark for an hour.
30—Pakistani commandos regained control of a police academy outside Lahore after terrorists
rampage through the complex, killing at least eight cadets.

APRIL
5—A suicide bomber strikes in a crowded Shia mosque in Punjab province of Pakistan killing 22
worshippers.
6—More than 250 people are killed in a devastating earthquake that rocks central Italy around
the ancient town of L’Aquila.
—Eight persons are killed in series of bomb blasts in Assam, suspected to be triggered by ULFA
militants.
11—ASEAN summit is deferred as
thousands of anti-government protestors smash their way into the Summit venue in Pattaya,
Thailand.
12—Indian hockey team reclaims the Azlan Shah title after 13 years

MILESTONES

Aishwarya Rai: Hindi film actress, she will soon join the ranks of Hollywood beauties like
Beyonce Knowles, Elizabeth Taylor and Diana Ross, by becoming the first Indian face of the
legendary doll Barbie.

Ekta Chaudhary: of Delhi, she has been crowned Miss Universe (India), 2009. Pooja Chopra of
Pune has been selected as Miss World (India) and Shriya Kishore from Mumbai as Miss Earth
(India).
Vivek Kundra: He has been appointed as the first federal chief information officer by President
Obama of USA.

Sunil Bharti Mittal: Founder, Chairman and group CEO of Bharti Airtel, he has become the first
Indian to join the board of trustees of the Carnegie Endowment for International Peace. This
global think tank has former UN Secretary General Kofi Annan among its only three non-US
board members.

EVENTS; APPOINTMENTS; ETC.: APRIL-MAY

2009
APPOINTED; ELECTED; Etc.

Jacob Zuma: He has been elected as the President of South Africa.

Dr Manmohan Singh: He has been elected as the Prime Minister of India.
Madhav Kumar Nepal: Veteran Communist leader and former general-secretary of CPN-UML,
he has been elected as the Prime Minister of Nepal.
Naveen Patnaik: He has been elected as the Chief Minister of Orissa. His Biju Janata Dal has
become the first regional party to come to power on its own in Orissa.
V.S. Sampath: He has been appointed as the Election Commissioner of India.
Pawan K. Chamling: He has been elected as Chief Minister of Sikkim.
D.D. Lapang: He has been elected as the Chief Minister of Meghalaya.
Timothy J. Roemer: He has been appointed as the US Ambassador to India.
Madhu Kannan: He has been appointed as the Managing Director and Chief Executive Officer of
the Bombay Stock Exchange.
J.S. Sarma: TDSAT member, he has taken-over as Chairman of the Telecom Regulatory
Authority of India (TRAI), succeeding Nripendra Mishra.

RESIGNED

Pushpa Kamal Dahal Prachanda: Prime Minister of Nepal.

Arun Bhatnagar: Chairman of Prasar Bharti Board.

EVENTS
APRIL
13—Eleven CISF jawans and four Maoists are killed in a gunfight in a well-
guarded armoury and bauxite mine of Nalco in Orissa.
14—Notwithstanding opposition from various countries, Pakistan President Asif Ali Zardari
ratifies a regulation for enforcing Islamic Shariah laws in the restive Swat Valley as part of a
peace deal with the Taliban militants.
15—India successfully test fires a version of nuclear-capable Prithvi-II ballistic missile with a
range of 350 km from the Integrated Test Range (ITR) at Chandipur, off the Orissa coast.
16—In the first phase of elections, about 58-62% of the 14.3 crore voters exercise their
franchise in 124 constituencies across 17 States, even as Naxalites kill 19 people, including 10
security personnel, across Jharkhand, Bihar and Chhattisgarh.
18—A suicide bomber rams his explosive laden vehicle into a police check post killing 23
people, most of them secu-rity personnel, in Pakistan’s troubled NWFP.
20—India successfully launches a surveillance satellite, RISAT-2, built jointly with Israel
Aerospace Industries Ltd.
22—Over one lakh Tamil civilians have flee the LTTE-held No Fire Zone (NFZ) amid intense
fighting between the LTTE cadres and the Sri Lankan Army (SLA).
23—Phase II of general elections in 140 constituencies across 12 States is completed.
26—Governments around the world rush to check the spread of a new type of swine flu that
kills more than 100
people in Mexico.
29—The Pakistan government claims successes in its war against militants in Buner after
capturing strategic points and villages. However, the army action leads to internal
displacement of thousands of people.
30—Nearly 50 per cent of the voters exercise their franchise in the third phase of the general
elections in 107
constituencies spread over nine States and two Union Territories.
—A wave of ethnic violence sweeps Karachi, Pakistan, killing at least 29 persons, including
Pashtuns and Urdu-speaking supporters of the MQM.

MAY
6—More than 100 civilians are killed in Army strikes on militants in Afghanistan.
7—Polling is held for 85 Lok Sabha seats across eight States.
13—Curtain rings down on the massive exercise of voting in the Lok Sabha elections with nearly
62 per cent electorate casting ballots in the fifth and final phase.
16—The first case of swine flu in India is confirmed in Hyderabad by the director-general of
health services in New Delhi. A 23-year-old passenger from Dubai was suspected of having
contracted the virus and quarantined after his samples tested positive of the H1N1 flu.
18—For the first time in the history of Mumbai Stock Exchange, circuit breaker is applied to
stop trading after just 30 seconds to cool down an over-heated market as a buying spree pushes
the Sensex up by 2000 points.
—President Pratibha Patil dissolves the 14th Lok Sabha, paving way for the constitution of the
15th Lok Sabha.
—The chief of the Liberation Tigers of Tamil Eelam (LTTE), V. Prabhakaran is killed by Sri Lanka
army. Sri Lanka armed forces free the nation from three decades of LTTE terror.
—In a frenzy unprecedented in the history of Indian stock market, Sensex jumps up by 2,110.79
points, or 17.3 per cent, following Congress win in Lok Sabha elections.
19—India successfully test-fires its nuclear-capable ‘Agni-II’ missile with a strike range of upto
3,000 km from a launch pad of Integrated Test Range at Wheelers Island near Dhamra, off
Orissa coast.
22—Dr Manmohan Singh is sworn-in as the Prime Minister of India for a second term.
23—Pakiatani security forces enter Mingora, the main city of Swat valley, killing more than 17
militants and signalling a new phase of their offensive against the Taliban militants.
24—Curfew is clamped in Jalandhar city in Punjab as tension grips the DOaba region within
hours of attack in the head of Dera Sachkhand Ballan in a temple shootout in Vienna, Austria.
25—Cyclone “Aila” kills more than 100 people in West Bengal.
—North Korea conducts a second nuclear test, far more powerful than its first one.
26—North Korea tests two short-range missiles a day after detonating a nuclear bomb
underground, pushing the regime’s confrontation with world powers further.
27—A massive car bomb rips through headquarters of ISI in Lahore, killing more than 30 people.
It is termed as one of the most devastating suicide attacks by Taliban elements in Lahore

MILESTONES
Jose Brasa: of Spain, he has been appointed the chief coach of India’s men’s hockey team.
Milan Vohra: Mills & Boons, the biggest, most breathless romance publisher in the world, has
completed its search for fresh literary talent and its first writer from India is Milan Vohra. It
was Vohra’s short story, The Love Asana that impressed the judges.
Shubhra Saxena: of Ghaziabad, she has topped the Civil Services Examination, 2008.
Yelena Isinbayeva: Russian pole vaulter and Olympic gold medallist, she has won her second
Laureus World Sportswmoan of the Year award.
Kavya Shivashankar: Indian-American teenager who won the televised US National Spelling Bee
competition, nailing esoteric words from “hydrargyrum” to “Laodicean

June 2009
APPOINTED; ELECTED; Etc.

Hans Raj Bhardwaj: He has been appointed as the Governor of Karnataka.

Rameshwar Thakur: He has been appointed as the Governor of Madhya Pradesh.
Devanand Konwar: He has been appointed as the Governor of Bihar.
Ramesh Pokhriyal Nishank: He has been elected as the Chief Minister of Uttarkhand.
Meira Kumar (Mrs): She has been elected as the first woman—who also happens to be a Dalit—
as the Speaker of Lok Sabha. Her deputy would be BJP leader Karia Munda.
Pawan Kumar Bansal: Union Parliamentary Affairs Minister, he has been given additional
charge of Water Resources Ministry.
Air Chief Marshal Pradeep Vasant Naik: He has taken over as the Chief of Indian Air Force.
Goolam E. Vahanvati: He has been appointed as the Attorney-General of India. He is the first
Muslim to hold the top law officer’s post.
Gopal Subramaniam: Former additional Solicitor-General, he has been appointed as the
Solicitor-General, the second most important law officer of the central government.
Montek Singh Ahluwalia: He has become the first deputy chairman of Planning Commission to
retain the post after the government reconstituted the plan panel, which will also have three
new members. The new entrants to the Commission are: Saumitra Chaudhuri, former member
of the PM's Economic Advisory Council, Narendra Jadhav, honorary vice-chancellor of Pune
University, and Mihir Shah, Secretary of Samaj Pragati Sahayog.
Kamlesh Chandra Chakrabarty: He has taken charge as Deputy Governor of the Reserve Bank
of India (RBI).
Nandan Nilekani: Co-chairman of Infosys, he has been appointed as the chairperson of the
Unique Identification Authority of India, constituted to provide national identity cards to Indian
citizens.
G.K. Pillai: He has been appointed as the Home Secretary of India.
Peter Varghese: He has been appointed as Australia’s High Commissioner to India.

RESIGNED
Bhuvan Chand Khanduri: Chief Minister of Uttarkhand.

DISTINGUISHED VISITORS

Lyonchhoen Jigmi Y. Thinley: Prime Minister of Bhutan, he is the first head of a foreign State
to visit India during the second term of the UPA government.
Sheikh Abdullah Bin Zayed Al-Nahyan: External Affairs Minister of United Arab Emirates (UAE).

DIED

Habib Tanvir: World-renowned theatre personality. He was 86.

Ustad Ali Akbar Khan: Sarod maestro. He was 88. His father, Baba Allauddin Khan, was one of
the greatest names of Hindustani music.
Michael Jackson: The King of pop, who first enraptured audiences as a child star and
eventually moon-walked his way into hearts of millions around the world. He was 50.
Shiv Charan Mathur: Governor of Assam.
Millivina Dean: The last survivor of the 1912 sinking of the “Titanic”. She was 97. Dean was
just nine weeks old when her family sold a pub they owned in London to travel on the maiden
voyage of the passenger liner and begin a new life in Wichita, Kansas, in the United States. Her
father was one of the 1,517 people who died. Dean, who was wrapped in a sack to protect her
from the cold and lowered into a lifeboat, was the youngest of the 706 Titanic survivors.

EVENTS
JUNE
1—An Air France plane with 228 persons on board crashes into Atlantic Ocean after hitting
heavy turbulence during a flight from Rio de Janerio to Paris.
5—In raging violence in Pakistan’s restive north-west, a suicide bomber blows himself in a
mosque at Hayagai Sherqi in Upper Dir district near Peshawar, killing more than 40 people.
18—The rate of inflation, as measured by the wholesale price index, turns negative for the first
time in over 30 years.
20—Security forces re-capture Lalgarh police post in West Bengal from Maoists. The post had
been under the control of Maoists for last eight months.
21—Saina Nehwal scripts history by becoming the first Indian Badminton player to win a Super
Series tournament.
29—In Central America’s first military coup since the end of Cold war, Honduras President
Manuel Zelaya is overthrown and exiled by the army.

MILESTONES
Farah Pandith: A Kashmiri-origin woman, she has been appointed by US Secretary of State
Hillary Clinton as a Special Representative to Islamic communities to reach out to the Muslim
world, providing momentum to US President Barack Obama’s efforts for a “new beginning”
with the community.

EVENTS; APPOINTMENTS; ETC.: JULY 2009

APPOINTED; ELECTED; Etc.

Banwari Lal Joshi: He has been appointed as the Governor of Uttar Pradesh.
Gurbachan Jagat: Governor of Manipur, he has been given additional charge as Governor of
Nagaland.
Iqbal Singh: He has been appointed as the Lt. Governor of Puducherry.
Jagannath Pahadia: He has been appointed as the Governor of Haryana.
K. Sankaranarayanan: He has been appointed as Governor of Jharkhand.
Margaret Alva: She has been appointed as the Governor of Uttarkhand.
Syed Sibtey Razi: He has been appointed as the Governor of Assam.
Nalin Surie: He has been appointed as the High Commissioner of India to United Kingdom.
S. Jaishankar: He has been appointed as India’s Ambassador to China.
Tim J. Roemer: He has been appointed as the Ambassador of USA to India.
Nirupama Rao: She has been appointed as the Foreign Secretary of India.
Pradeep Kumar: He has been appointed as the Defence Secretary of India.
Ram Sevak Sharma: He has been appointed as the first Director-General and Mission Head of
the National Unique Identification Authority of India (NUIAI).
Sunil Mitra: He has been appointed as the Disinvestment Secretary of India.
V. Sridhar: He has been appointed as the Chairman of the Central Board of Excise and Customs
(CBEC).

DISTINGUISHED VISITORS

General Bismilah Khan Mohammadi: Army Chief of Afghanistan.

Hillary Clinton: Secretary of State of USA.
Samuel Aba: Minister of Foreign Affairs, Trade and Immigration of Papua New Guinea.

DIED

Corazon Aquino: Former President of Philippines who had led millions of Filipinos in protests
against Dictator Ferdinand Marcos, in a popular revolt in 1986, before taking over as the
President. She was 76.
Gangubai Hangal: Doyen of Hindustani vocal music. She was 97.
Devendra Dwivedi: Governor-designate of Gujarat. He was 73.
Gayatri Devi: Erstwhile Rajmata fo Jaipur. She was 90. She was once listed among the world’s
ten most beautiful women by Vogue magazine.
Leela Naidu: Hindi film actress, who mesmerised audiences with her classic beauty in films like
"Anuradha" and "Yeh Raaste Hain Pyaar Ke”. She was 69.
Tyeb Mehta: Noted Indian painter. He was 84.
Walter Cronkite: America’s legendary broadcast journalist, best known as anchorman Walter
Cronkite. He was 92

EVENTS
JULY
2—The Union Cabinet decides to recommend the extension of President’s Rule in Jharkhand by
another six months, on the ground that no party or grouping had been able to muster the
numbers required to form a government in the State.

4—In its second biggest salvo of ballistic weaponry in three years, North Korea test-fies seven
missiles, sending a message of defiance to USA on its Independence Day.

12—Naxalites kill 26 police personnel in Chhattisgarh.

13—At least 16 people, many of them children, are killed as a powerful explosion rips apart a
madrassa-cum-bomb-making factory in a village in Pakistan’s Punjab province.

15—An Iranian passenger Airliner crashes near Tehran, shortly after take-off, killing all 168 on
board.

17—Bombs rip through two luxury hotels in the heart of Indonesia’s capital Jakarta, killing
eight persons and wounding a dozen.

22—Twenty-first century’s longest total solar eclipse occurs over India. Totality lasts for up to
6 minutes and 39 seconds and will not be surpassed in duration until June 13, 2132.

25—History is created as Border Security Force (BSF) inducts the first batch of women
constables who will be deployed in combat role on the international border.
25—The first-ever women’s batch of Border Security Force (BSF) passes out of BSF’s Subsidiary
Training Centre, Kharkan, Hoshiarpur, Punjab. Deployed for the first time in combat role, the
women will be required to stand guard at the international border at Atari-Wagah border near
Amritsar.

26—India, led by Prime Minister Manmohan Singh pays homage to the martyrs of the Kargil war.

26—India’s first indigenously developed nuclear submarine, INS Arihant, is launched by Mrs
Gursharan Kaur, wife of Prime Minister Manmohan Singh.

28—J&K Chief Minister Omar Abdullah resigns on sex romp charges by Opposition PDP party. He
is, however, persuaded to stay after Union Home Minister says the charge is false.

31-Britain withdraws its troops from Iraq, concluding six years of military involvement in the
country that began with the US-led invasion which ousted Saddam Hussein.

MILESTONES
Edmond Salis: French pilot, he flew on July 26, 2009 to Dover on a ‘Bleriot XI’, a restored
original of the plane in which Louis Bleriot crossed the English Channel exactly a 100 years ago.

Russell Peters: Canadian comedian of Indian parents who came from Kolkata, he has been
ranked among the top 10 Earning Comedians in the world by Forbes.

Sanjukta Pangi: A Class 12 student at a government school in Karanjaguda village of Orissa’s

Koraput district, she was one of the 14 participating youngsters from different countries who
are in Italy for the J8 (Junior 8) summit, an offshoot of the powerful G8, the group of world’s
most wealthy and industrialised countries. The 14 youngsters were selected to meet the top
world leaders from G8 and G5 from among 54 youngsters aged between 14 and 17 years. At the
meeting, the J8 representatives called on their respective leaders to get tough with countries
who don’t meet climate change targets and teachers whose standards slip.

EVENTS; APPOINTMENTS; ETC.: AUGUST 2009

APPOINTED; ELECTED; Etc.

Yukio Hatoyama: He has been elected as the Prime Minister of Japan.

C. Rangarajan: He has been appointed as the head of Prime Minister’s Economic Advisory
Council (PMEAC). The other members of PMEAC are: M. Govinda Rao, V.S. Vyas, Suman Bery
and Saumitra Chaudhari.

Dr V.K. Saraswat: He has been appointed as the Director-General of the Defence Research and
Development Organisation (DRDO). He will also be the new Secretary, Department of Defence
Research and Development, besides being the Scientific Advisor to Defence Minister.

U.D. Choubey: He has taken over as Director General of Standing Conference of Public
Enterprises (SCOPE), the apex body of public sector units.

DISTINGUISHED VISITORS

Madhav Kumar Nepal: Prime Minister of Nepal.

Kim Jong-hoon: Trade Minister of South Korea.

Sujata Koirala: External Affairs Minister of Nepal.

DIED

Gulshan Bawra: Noted film lyricist who gave memorable songs like ‘Mere Desh ki Dharti’. He
was 72.

Patwant Singh: One of the leading Sikh literary personalities and a noted writer on
international issues. He was 84.

Les Paul: Legendary US guitarist and inventor who pioneered designs of electric guitars. He
was 94.

Senator Edward M. Kennedy: The last surviving brother of President J.F. Kennedy and one of
the most influential US Senators in history. He was 77. He was also known as the “Lion of
Senate”.

EVENTS
AUGUST
3—First swine flu death in India is reported from Pune.

7—Baitullah Mehsud, Pakistan’s most feared terrorist commander who established the Taliban
as a force in huge swathes and unleashed attacks across the country, is killed in a US missile
attack on the house he was hiding in.

7—Indian Coast Guard detains a “suspicious” North Korean ship for dropping anchor off Hut Bay
in the Andaman and Nicobar Islands.

10—Two truck bombs targeting a tiny sect in a village in northern Iraq and a spate of bloody
bombings in Baghdad kill at least 47 persons.

10—Typhoon Morakot causes the worst flooding in Taiwan in half a century.

13—India and ASEAN sign a free-trade agreement to create a European Union-style single
market that will boost trade by $10 billion in the very first year.
18—Taliban attacks rock Afghanistan two days before elections. Suicide bombers kill more than
12 people, including UN staff and NATO troops.

19—Series of explosions kill at least 95 people in Central Baghdad, the deadliest day in the
Iraqi capital since US troops withdrew from urban centres in June 2009.

20—Abdelbaset Ali Mohmet al-Megrahi, the terminally-ill Libyan who was the only person
convicted for downing a US passenger jet that killed 270 people in 1988 over Lockerbie, is
released by Scotland on compassionate grounds. The White House “deeply regrets” the Scottish
decision and US family members of Lockerbie victims express outrage.

29—India’s first moon mission, Chandrayaan-1, looses radio contact with mission control
leading to ISRO abandoning the mission.

29—Prime Minister Manmohan Singh turns the ‘wheel of fortune’—a valve—to allow first gush of
oil from Cairn’s Mangala field in Barmer, Rajasthan, India’s biggest oil discovery in over two
decades.

30—For only the second time in post-war history, Japan votes out Liberal Democratic Party and
hands a landslide victory to the Democratic Party of Japan.

MILESTONES

Sonia Sotomayor: She is the first Hispanic to be sworn-in as the US Supreme Court judge. She
also became the first high court member to have her oath-taking made available to TV
cameras.

Nirmala Deshpande: The Pakistan government has decided to confer its highest civilian award,
Sitara-e-Imtiaz, posthumously on Gandhian Nirmala Deshpande for working towards peace,
harmony and cordial relations between India and Pakistan. It is for the first time that services
of any Indian woman to public life and her contribution to building amity in the region had
been acknowledged by the Pakistan government.

Stefania Fernandez: She has won the Miss Universe pageant 2009. Miss Dominican Republic
Ada Aimee De la Cruz was first runner-up and Miss Kosovo Gona Dragusha was second runner-
up. The pageant was held at Nassau, Bahamas.

ROUND-UP OF NATIONAL AFFAIRS 2008

BANKING & FINANCE
FDI rules eased up: The Union government has brought major changes to Foreign Direct
Investment (FDI) rules, easing existing curbs on overseas capital in such key areas as real
estate, petroleum refining, commodity exchanges, mining and aviation. The review, however, did
not include the politically contentious issue of allowing foreign multi-brand retailers like Wal-Mart
and Carrefour to open front-end stores in India. The changes cleared by the Cabinet included
increasing the limit on FDI to 100 per cent for titanium mining and aircraft maintenance
companies, from 49 to 74 per cent in cargo and chartered airlines, and from 26 per cent to 49 per
cent in public sector refining companies. The changes are expected to boost FDI inflows, which
peaked to $16 billion through 2006-07. In 2007-08 the government expects such inflows to reach
$26 billion.
India kicks off foreign currency futures trade: On August 29, 2008, India launched exchange-
traded rupee futures, with the front-month contracts seeing the highest activity in heavy trade, but
dealers said volumes may wane after the initial burst of interest. Dealers said banks and large
companies accounted for the bulk of trading, although concerns regarding small contract sizes
and trading limits remains. All resident individuals of India are allowed to trade. Underlying
exposure is not necessary. Cash settlement in Indian rupees is mandatory. Individual investment
limit has been set to $200,000 per annum. RBI-permitted banks and SEBI permitted members
can trade on the exchange.

Institutions now get direct market access: In a move that will usher in algorithmic trading and
transform the Indian stock market, SEBI has now allowed Direct Market Access (DMA) to
institutional investors. Foreign Institutional Investors (FIIs) and domestic institutions such as
mutual funds and insurance firms can now directly execute their buy and sell orders without any
manual intervention by their brokers. However, brokers aren’t entirely out of the picture because
the trades will still be executed through their systems.

Insurance firms can lend shares: IRDA, India’s insurance sector regulator, has decided to allow
insurance companies to lend shares to foreign and domestic institutions, a move that will create a
new stream of revenues for these firms, and increase overall trading activity in the stock market.
Postal life funds set to get street smart: The government has allowed the Postal Life Insurance
Fund (POLIF) and Rural Postal Life Insurance Fund (RPOLIF) to enter the markets through
investments in public sector mutual funds. The Union Cabinet has appointed UTI MF and SBI MF
as managers of the over Rs 10,000-crore corpus of these two funds. It has also approved setting
up of an investment board for deciding investment policies. This would primarily be applicable to
new deposits into these schemes, as much of the existing corpus is already invested in
government bonds.

RBI measures to tackle liquidity crisis: In the month of October 2008 the government and RBI
took all possible measures to shovel in as much money into the financial system as possible. RBI
released bank funds it had impounded, allowed banks to borrow more against gilts, made NRI
deposits a little more attractive. The Centre, after delaying borrowing, advanced its spending by
releasing Rs 25,000 crore to banks. Significantly, the government also promised to recapitalize
banks. The one percentage point cut in CRR, which was with retrospective effect from October
11, 2008, released Rs 40,000 crore. This, with the farm relief package, released around Rs
65,000 crore into the banking system.

Fresh guidelines on Basel II: As part of efforts to prepare Indian banks for compliance with new
risk management norms under Basel II, Reserve Bank of India (RBI) has come out with
guidelines asking them to keep adequate capital to meet wide areas of risks, including those that
could damage their reputation. The guidelines issued on Supervisory Review Process (SRP) ask
banks to make provision for risks relating to credit concentration, liquidity, settlement risk,
reputation, strategy, and under estimation of credit risk that were not specified earlier. Already,
RBI has issued two guidelines on minimum capital ratio and market disciplines for Basel II norms,
called Pillar I and Pillar III.

SEBI gives nod for new pro-ducts in F&O mart: In what is being seen as the first step towards
bringing in a dramatic change in the country’s derivatives landscape, and at the same time
provide a smooth closure of participatory notes, SEBI has given the initial go ahead for launching
a host of new products in the Futures & Options (F&O) segment. Interestingly, the new
derivatives pro-ducts approved for launch are not only based on shares and stock market indices,
some are even products based on bonds, bond indices and foreign exchanges. The SEBI board
has approved introduction of seven new types of derivatives products.
Sen Panel on Commodity Trading: The draft report of the expert committee on futures
commodity trading, headed by Abhijit Sen, has recommended better regulation and participation
by farmers in the commodities market, even while saying that there was no evidence to suggest
that futures trading stoked inflation. Noting that food grain had at no point accounted for more
than 6% of total volume of futures trading in agricultural commodities, the panel made a case for
actually enlarging futures trading.

Short selling by FIs allowed: Securities and Exchange Board of India (SEBI) has allowed from
April 21, 2008 short selling by institutional investors, banned after the Ketan Parekh scam six
years ago. This means that institutional investors will be able to sell shares without owning them
at the time of trade. Simultaneously, a full-fledged securities lending and borrowing scheme, the
essential condition for short selling, has also started. The system of naked short selling as is
available in the US markets has not been allowed, and all investors must honour their obligation
of delivering the securities at the time of settlement.

Trusts get nod to invest in stocks: The Union Cabinet has decided to amend the Indian Trusts
Act, 1882, to allow trusts to invest in securities, including shares and bonds of listed companies.
BUSINESS & TRADE
Now, foreign news magazines can have Indian editions: The Union government has further
relaxed the norms pertaining to publishing of the foreign magazines in India by reviewing the print
media policy whereby the foreign news magazines could now have Indian editions. However, the
permission for publishing such editions would only be granted to those Indian companies
registered under the Indian Companies Act, 1956. The norms for publishing of such foreign
magazine editions would include that publishers of such editions continue to be eligible for 26 per
cent foreign direct investment. The other parameters for granting such permission would be that
the Indian companies would be allowed to enter into financial arrangements with the owners of
the foreign magazines. At least three-fourth of the directors on the board of directors of the
applicant Indian company and all key executives and editorial staff will have to be resident
Indians. The title of the magazine will have to be verified and subsequently registered by the
Indian company from the Registrar of Newspapers for India.

Reservation era nears an end for small units: Almost 17 years after the process of reforms
began with the new industrial policy statement of P.V. Narasimha Rao in July 1992, governments
remained wary of intruding on the politically sensitive issue of reservation for Small-Scale Industry
(SSI) till the end of the 1990s. Thus, while at the turn of the millennium the number of items
reserved for SSI units had come down from its peak of 873 in 1984, well over 800 items remained
on the list. Since 2002, the scenario has changed dramatically. In these last seven years, around
790 items, including things like farm equipment, toothpaste, ice cream, footwear, detergents and
even garments have been knocked off the list. Thus, for the first time in over 40 years, there are
today as few as 35 items reserved for SSI units. Latest de-reservation means that pastries, hard
boiled sugar candy and tooth powder can be manufactured by large units too. Electrical goods,
which include geysers, hot air blowers and toasters, too are out of the reserved list, as are ball-
point and fountain pens.
COMMISSIONS
Liberhan Commission: Sixteen years after it was set up to probe the demolition of the Babri
Masjid, the Justice M.S. Liberhan Commission has received the 46th extension of its term.
Though the latest extension of three months will end on September 30, 2008, there is no reason
to believe that this could be the last. The 70-year-old Justice Liberhan has not so far disclosed
any reason for such an inordinate delay in a politically sensitive matter.

Nanavati Commission Report: Giving a clean chit to Gujarat Chief Minister Narendra Modi, the
Godhra train carnage report, tabled in the Gujarat Assembly, has described the burning of the S-6
coach of the Sabarmati Express on February 27, 2002 as a conspiracy. The first part of the
report, dealing with the fire on the ill-fated train was recently handed over to the State government
by a fact-finding Commission headed by Justice G.T. Nanavati. The second part dealing with
post-Godhra riots will be submitted in December. The findings of the two-member commission,
presented six years after the incident, go contrary to a probe headed by another former Supreme
Court judge U.C. Banerjee, set up by the Lalu Prasad-headed Railway Ministry. Banerjee had
concluded that the fire on the train, in which 58 kar sevaks returning from Ayodhya were killed,
was accidental. The train carnage was cited as the reason by Hindu outfits to justify the post-
Godhra riots where over 1,000 people were killed in communal clashes in different parts of the
State.

DEFENCE
Armed Forced Tribunal Bill passed: The Armed Forces Tribunal Bill, 2005, has been passed
by the Parliament, paving the way for setting up the first services tribunal in the country. When
the tribunal is set up as many as 11,000 pending cases of armed forces personnel in civil courts
will be tansferred to the new body based at New Delhi.

Army to have two new mountain divisions: Realising the growing needs of fighting a war in the
Himalayas, India will add about 25,000 more troops as part of its process to have two more
mountain divisions. Each division will have about 10,000 to 13,000 men. The move is aimed at
providing more teeth to India’s existing mountain warfare machinery. The Army already has 10
divisions dedicated to mountain warfare and another infantry division earmarked for high-altitude
operations.

Cell to counter threat in space: With China already having acquired the ability to shoot down
satellites using missiles, India has now announced setting up of a cell to counter threats to its
space-based assets. The space cell, under the aegis of the Integrated Defence Ser-vices
headquarters, is to act as a single window between the Armed Forces, department of space and
Indian Space Research Organisation to work out measures to protect India’s space-based
assets.

FDI Cap in Defence hiked to 49%: The Union government has accepted industry’s proposal to
hike the FDI ceiling in the defence sector from the current 26% to 49% on a case-to-case basis.
This is expected to help indigenize defence production through absorption of latest technologies.
The government would also review the Offset Policy, which came into effect from September
2008. The aim of the review would be to hasten defence procurement.

India gears up for wars of future: India is launching a futuristic programme to develop
sophisticated NBC (Nuclear-Biological-Chemical) defence technology to counter the threats
posed by hostile armies or terrorists resorting to such warfare. The new programme, being
spearheaded by Defence Research and Development Organisation (DRDO), comes after the
Army has already inducted Rs 700 crore worth of NBC defence equipment, with another Rs 2,000
crore worth of it in the pipeline after being approved by the Defence Ministry. The NBC equipment
already developed by DRDO includes as many as 60 products, which have been handed over to
either the ordnance factories or the private sector for bulk production.

DISASTERS
Bihar’s Sorrow: The Kosi river, which gathers water from some of the highest mountains in the
world, including Everest, and enters India in north Bihar, has changed its course and shifted over
120 km eastwards, going back to a course it had abandoned more than 300 years ago. In the
process it has rendered useless more than 300 km of embankments that had been built to control
its ever angry waters. The effect has been enormous, inundating numerous towns and villages
that had not seen such floods for decades. The people of Madhepura, Araria and Supaul districts
were affected as the river broke through the embankment just after the barrage at Bhimnagar and
swept into its old course.

EDUCATION
Go-ahead to South Asian var sity: The Union Cabinet has given its approval to the South
Asian University. The Bill traces its roots to the 13th SAARC Summit held in Dhaka in November
2005, when Prime Minister Manmohan Singh proposed the establishment of a South Asian
University (SAU) to provide world-class facilities and professional faculty to students and
researchers. The university would have branches of learning in other SAARC member States. Its
jurisdiction shall extend to whole of SAARC region. It would have full functional autonomy as per
terms and conditions of the inter-governmental Agreement of April 2007.

Kerala tops primary education index: Kerala is ranked number one among the 21 major States
(large in geographical area) in the latest composite Education Development Index (EDI) prepared
for the primary and upper primary levels of schooling for 2006-07. Delhi comes second, followed
by Tamil Nadu, Himachal Pradesh and Karnataka. The report on the EDI was prepared by the
National University of Educational Planning and Administration (NUEPA), based on the District
Information System for Education (DISE), a comprehensive database on elementary education in
India, which it had created in recent years. Delhi is the only “Top 5” State which has improved its
overall position in terms of infrastructure in primary and upper primary schools.

National Means-cum-Merit Scholarship scheme: In the first major move towards strengthening
secondary education in India, the Centre has approved the ambitious National Means-cum-Merit
Scholarship scheme for students from classes IX to XII. Announced in 2007 in the Union Budget
speech, the scheme seeks to arrest the high dropout rate at secondary-level by offering financial
support to economically backward students. One lakh scholarships worth Rs 6,000 each, per
annum, will be awarded every year to meritorious class IX students from economically weaker
sections. Monetary support will continue till the students reach secondary stage and complete
class XII. Each successful student will thus get Rs 6,000 per year to study in classes IX, X, XI and
XII. State-level tests to select candidates for these scholarships will be held; tests will be held in
conjunction with the first level selection tests for National Talent Search Examination.

Right to Education Bill gets Cabinet nod: The ambitious Right to Education Bill has got the
Cabinet nod. The Bill, which guarantees elementary education for children from 6 to 14 years,
had earlier faced obstructions from the Law Ministry, which questioned the manner of budgeting
as detailed in the draft legislation. There was lack of clarity in the draft law as to how resources
would be allocated and shared between the Centre and States. As for the Bill, it secures
children’s right to elementary level education in neighbourhood schools, and seeks to hold all
stakeholders—the State, teachers and parents—responsible for the education of
children.
ELECTIONS
BJP wins in Himachal Pradesh: Riding on a strong anti-incumbency wave, the Bharatiya Janata
Party (BJP) swept to power in Himachal Pradesh, registering its most specta-cular victory to date
under the leadership of Prem Kumar Dhumal. Out of the 68 Assembly seats for which polling was
held in two phases, the BJP bagged 44 seats, while Congress could muster only 23 against its
2003 tally of 43 seats. The BJP had won only 16 seats in the previous elections. These assembly
polls also saw the Bahujan Samaj Party (BSP) opening its account in the hill State. The party,
which had fielded 68 candidates, mostly Congress and BJP rebels, secured one seat.

BJP Wins in Gujarat: On December 24, 2007, Gujarat Chief Minister Narendra Modi defied all
poll predictions and anti-incumbency to pull off a stunning electoral victory by romping back to
power with a near two-thirds victory. His tally: 117 of the State’s 182 seats. The Congress:
virtually where it was in 2002 with 59 seats. Though BJP had been confident of a win, the scale of
the victory was gratifying.

BJP wins in Karnataka: The Bharatiya Janata Party defeated the Congress in Karnataka
elections held in May 2008, stepping across the Vindhyas to try to rule a southern State by itself
for the first time. A simple but effective “give us a chance” card helped the BJP win 110 seats—
three short of a simple majority—in the 224-member Legislative Assembly. Congress won 80
seats, better than the 65 it won in 2004. B.S. Yeddyurappa was sworn-in as the Chief Minister.

Left win in Tripura: Elections to elect 60-member Assembly were held on March 1, 2008.
Tripura experienced an unprecedented turnout which was by and large peaceful with no major
incident of violence. Of the 20-lakh-odd electors in Tripura, around 30% are tribal voters. The
ruling Left Front, led by Chief Minister Manik Sarkar, retained the power for the fourth time in a
row with a facile win over the Congress-led alliance. Left Front, comprising of the CPM, RSP and
CPI, secured three-fourth majority. CPM alone emerged winner in 46 seats. Manik Sarkar was
sworn-in as the Chief Minister for the third consecutive term.

Meghalaya elections: On March 3, 2008, over 75 per cent voters turned out to exercise their
franchise to elect representatives to the 8th Meghalaya Assembly from 59 constituencies spread
over all the seven-districts of the hill State. The polling remained by and large peaceful. The ruling
Congress emerged as the single largest party in a hung Assembly. A seven member coalition
government of the Meghalaya Progressive Alliance (MPA) ministry, led by Chief Minister
Donkupar Roy, was sworn in after the Congress-led minority Meghalaya United Alliance ministry
led by D.D. Lapang resigned ahead of trust vote in the Assembly. Lapang had been allowed to
form the government by Governor S.S. Sidhu on March 10, 2008, after the Congress emerged as
the single largest party.

Nagaland elections: All apprehensions regarding possible violence were set aside as the Nagas
across the hill State came out in large numbers on March 5, 2008 to cast their votes for the 11th
Nagaland Assembly. Authorities put the overall turnout at 83 per cent. The Democratic Alliance of
Nagaland (DAN), comprising the Nagaland People’s Front, BJP and NCP emerged victorious with
34 out of the 59 results declared. Neiphiu Rio of NPF staked the claim to the post of Chief
Minister.

Ban on exit polls: The Union Cabi-net has given its approval to the proposal to restrict the
telecast of exit polls till the last polling in an election is over and also amend the Representation
of the Peoples Act, 1951 in this regard. The government said the restriction on the telecast of exit
polls would enable the voters to exercise their right to vote without being influenced by the
projection of the exit polls after the one phase of voting was over and the other phases of voting
were yet to be completed.

Cabinet okays delimitation: On February 14, 2008, ending weeks of speculation, the Union
cabinet decided to endorse recommendations of the Delimitation Commission. President Pratibha
Patil, accordingly, issued the notification, setting in motion the process of holding the next round
of Assembly polls and the 2009 General Election under a redrawn electoral map. The Presidential
notification on delimitation covers 24 States and Union Territories, and excludes Jhar-khand,
Assam, Arunachal Pradesh, Manipur and Nagaland, where the exercise of redrawing the
electoral maps could not be completed because of local resistance. Under the redrawn electoral
map, the number of seats reserved for SCs and STs will go up from 119 to 132, reflecting the
increase in the population of these social categories over the last 32 years.

ENVIRONMENT
Agenda to combat climate change: The National Action Plan on Climate Change sets out an
eight-point agenda to not only promote efficient and alternative energy use, but also gradually
reduce the country’s reliance on fossil fuels. The plan is meant to evolve and change with
scientific developments and through multilateral negotiations. India’s plan includes boosting use
of solar energy in the country over the next 10 years. The government also proposes tax sops to
promote fuel-efficient vehicles and those that use alternative fuel. It also proposes to cap energy
use in sectors that include thermal power, cement, iron and steel, and fertilizers.

Biofuel policy: The Union government is planning to make it mandatory for oil companies to sell
a 20% ethanol-blended petrol across the country by 2017. The National Policy on Bio-fuels has
set the target to achieve higher blending of biofuel in both petrol and diesel. The policy has also
suggested removing all Central taxes on bio-diesel and accord ‘declared goods’ status to biofuels
that would ensure a uniform 4% sales tax (VAT) on the product across States. As per the policy,
a certification mechani-sm would be put in place for the blending exercise that would have to
conform to BIS specifications. The use of blended diesel, however, is yet to kick-off due to non-
availability of adequate land for plantation of biofuel plants like jhatropha.

JUDICIARY
Judicial Impact Assessment: Judicial Impact Assessment (JIA) is soon going to be an integral
part of every legislation that the Centre and States bring. Simply explained, every new law will
have to calculate the increase in workload of courts in implementing new legislation and also
provide financial support to the judiciary. This is part of the recommendations made by the task
force on JIA set up in 2007 as per the Supreme Court order in the Salem Advocate case. It was
headed by Justice M. Jagannadha Rao, retired SC judge and former chairperson, Law
Commission.

LAW POINT
Bharat Mata a work of art: In a blow against the moral brigade, the Supreme Court of India has
termed M.F. Hussain’s painting Bharat Mata a work of art, paving the way for the eminent 92-
year-old painter to end his self-imposed exile in Dubai and London and return to his home in
Mumbai. The court refused to entertain a petition seeking initiation of proceedings against the
artist for hurting the sentiments of Indians. The argument that the painting, which depicted a nude
woman as Mother India, had hurt the sentiments of every sane citizen did not impress the bench.

SC rules that Courts should not interfere in economic policies: The Supreme Court, in a
significant judgement, has said that the judiciary must keep itself away from the executive and
legislature’s economic decisions and give greater latitude to the laws on fiscal and tax measures.
The judgement further held that the role of judiciary only comes when the civil liberties and
fundamental rights of the citizens were affected by any law passed by the legislature. The court
gave the ruling while upholding an amendment affected by Andhra Pradesh in the Indian Stamp
Duty Act, to curb the practice of under valuation of the real value of the properties in the sale
deeds and defrauding the government in the payment of proper revenue charges.

SC slams judicial overreach: In an unprecedented confession, the Supreme Court has admitted
that the judiciary has erred in the recent past in usurping the powers of the executive. Cautioning
against judicial activism, it said that if the trend continued, politicians would step in and clip the
judiciary’s wings. If the judiciary does not exercise restraint and overstretches its limits, there is
bound to be a reaction from politicians and others.

LEGISLATION
Bill to amend 1894 Land Act: In the backdrop of raging controversies on SEZs and big projects,
the government has introduced the Land Acquisition (Amendment) Bill 2007, which provides for
alternative mechanisms for disposal of land compensation disputes in a time-bound manner. The
Bill would make it difficult for those who acquire land for a particular purpose and use it for
something else, making huge commercial gains in the bargain.
Cabinet nod for limited liability partnership Bill: The Union Cabinet has given its approval for
introduction of a Limited Liability Partnership Bill, 2008. A Limited Liability Partnership (LLP) is an
alternative business structure, falling between partnership firm and a corporate body, combining
the limited-liability benefits of a company with the flexibility of a partnership.

Companies Bill: A liberal regulatory set-up for corporates is on the anvil with the Cabinet
approving the introduction of a new companies Bill that will replace the present archaic and
voluminous companies Bill. The new law will also pave the way for the formation of a one-Person
Company (OPC) that would help start-up entrepreneurs operate as a company without facing the
liabilities attached to a sole partnership firm. The new Bill also seeks appointment of minimum
33% independent directors on board and puts restrictions on firms on raising deposits from
public. Issue of shares on discount will not be allowed. It also provides for an Investor Education
and Protection Fund that will be administered by a statutory authority, as also proposes stringent
regime for misuse of not-for-profit companies. The new law will put no restrictions on number of
subsidiaries and allow wider choice on number of partners in a partnership firm. The Bill also
provides for special courts to deal with offences and scrapping of minimum paid-up capital
requirement. It also makes regulation of insolvency, winding up and liquidation effective.

Limited Liability Partnership Bill: The Limited Liability Partnership Bill, 2008 aims to give
professionals such as chartered accountants, lawyers and venture capitalists more flexibility in
setting up new firms. A limited liability partnership, or LLP, is an alternative business structure
falling between a partnership firm and a corporate body, combining the limited liability benefits of
a company with the flexibility of a partnership.

Money Laundering Bill: Payment gateways like Visa and MasterCard, money changers, money
transfer ser-vice providers and casinos will now come under the ambit of India’s
money laundering law and face mandatory reporting obligations. The Bill introduces new category
of offences which have cross-border implications for fighting terrorism. Insider trading and market
manipulation will be treated as a laundering offence and face stricter punishment under the law.
Offences related to human trafficking, smuggling of migrants, piracy and environmental crimes,
over invoicing and under invoicing under customs will also be punishable under PMLA. At
present, the mandatory reporting requirement is applicable on banks, financial institutions and
intermediaries. Under the rules, every banking company, financial institution and intermediary has
to maintain a record of all transactions for 10 years.
PLANNING & ECONOMY
11th Five-year plan approved: Prime Minister Manmohan Singh chaired the meeting of the
National Development Council (NDC) on December 18, 2007, to approve the eleventh Five-year
plan that seeks to raise the growth rate from 7.5 per cent to 9 per cent over the next five years.
The Rs 36,44,000 crore Plan seeks to nearly double agricultural growth to four per cent and raise
the Central outlay for education from eight per cent in the last five years to 19 per cent. At the end
of the five-year period, the plan expects to bring down poverty levels by 10 percentage points and
reduce unemployment to less than five per cent. The 11th Plan target of average 9% GDP
growth rate means more than doubling agriculture growth rate from 1.7% in 10th Plan to 4%
during next plan; services growing by over 10%, industry by 10.5% with manufacturing growth at
over 12%. It has been agreed that allocation for education would increase from 7.7% of total GBS
during 10th Plan to 19.3% during 11th Plan; rural development from 10.7% to 13.4%, agriculture
from 7% to 9.7% and social justice from 4.5% to 6.3%. This, however, would come at the cost of
physical infrastructure where allocations would go down 10.18% of GBS to 8.45%. The Plan also
proposes to reduce poverty by 10 percentage points, generate 7 crore new employment
opportunities and reduce unemployment among educated persons to less than 5%.

Collapsing financial system worldwide crashes Indian market: Following the footsteps of
central banks of developed countries like US, UK, Japan and Switzerland, among others, which
infused liquidity to pep up the banking system, Reserve Bank of India (RBI) also decided to pump
in around Rs 84,000 crore ($18 billion) in the domestic banking system through Liquidity
Adjustment Facility (LAF). In India, however, the condition did not reach the negative proportions
as in USA and Europe. The negative sentiment, however, overpowered all measures and
worldwide the stock markets fell like nine-pins. Sensex in India fell to below 8,000 thus wiping out
more than 50% of the gains made before January 22, 2008.

Current Account deficit surges: India’s current account deficit in 2007-08, due to rise in oil
import bill, rose by 77% to touch $17.4 billion, accounting for 1.5% of GDP in 2007-08, as against
$9.8 billion or 1.1% of GDP in 2006-07, according to data released by RBI. Oil import bill
increased by 34.6%, to $76.9 billion in 2007-08, due to surge in crude price. Surging oil import bill
has turned India’s January-March current balance into deficit of Rs 104 crore, against Rs 425
crore surplus a year ago, despite growth in software services exports and rise in remittances from
overseas Indians.

Extra Rs one lakh crore subsidy bill: Finance Minister P. Chidambaram sought Parliament
approval for an additional spend of Rs 1,06,113 crore ($ 21.7 billion) for 2008-09 to fund the food
and fertilizer subsidy bills as well as provide for the farm loan waiver scheme. This was the net
additional outgo from the government for the fiscal year. According to analysts, the additional
spending would lead to bigger borrowings, putting pressure on government finances and
widening the fiscal deficit to more than the budget target of 2.5% of gross domestic product.
However, this is likely to add liquidity in the system and generate economic activity.

Farm loan waiver raised by Rs 12,000 cr: The Union government enlarged the farm loan waiver
by Rs 11,600 crore—a move that also seemed to be timed to inject some “feel-good” into the
UPA regime completing four years in power. By making its rebate scheme—called One-Time
Settlement (OTS)—more liberal, the government has sought to address criticism—endorsed by
the Congress leadership—that a 2 hectare or 5 acre cutoff for a complete loan waiver
discriminated against farmers in dryland areas. The entire sum of Rs 50,524 crore debt waiver to
small and marginal farmers and Rs 9,790 crore worth of one-time settlement to other farmers
would be financed by the Centre in cash, but spread over four fiscal years. Rs 25,000 crore would
be reimbursed to the lending institutions by June 30, 2009. A further Rs 15,000 crore would be
disbursed by August 2009, completing two-thirds of the package, another Rs 12,000 crore
through Budget 2010 and the final instalment of Rs 8,000 crore through the 2011-12 Budget.

GDP scores a hat-trick with 9% growth in FY08: The Indian economy grew at the rate of 9% in
2007-08, faster than the advance estimate of 8.7%, according to the Central Statistical
Organisation (CSO). With this, the compound annual growth rate for the last four years has
touched 8.9%. Growth averaged 9.3% over the last three years. The total value of goods and
services produced in the economy—this is what GDP measures—at current market prices stood
at Rs 47.13 lakh crore. The population in 2007-08 stood at 113.8 crore, which yields a per capita
GDP of Rs 41,416. At constant prices (1999-2000 prices), the per capita income moved up to Rs
24,321, representing an increase of 7.8% during 2007-08. The economic growth was 8.8% in the
fourth quarter ending March 31, 2008. The economy grew 9.7% in Q4 of 2006-07. The
agricultural and allied sectors grew by 4.5% during 2007-08, compared to earlier lower estimate
of 2.6%.

India slips on Human Development Index: India has dropped to rank 128—a fall of two ranks—
among 177 countries in 2007 report on the Human Development Index despite a marginal gain in
HDI value. The UNDP’s Human Development Report states that climate change may actually
reverse the trend of a steady linear progress in health, education and poverty reduction seen in
the last few decades, especially in India, which has a “large human development deficit”. The HDI
is the measure of life expectancy, literacy, education, standard of living and well-being for
countries worldwide.

New National Mineral Policy: The Union government has unveiled the new National Mineral
Policy (for non-fuel, non-coal minerals), replacing the policy of 1993. Despite 100% Foreign Direct
Investment (FDI) allowed in the old policy, India did not attract FDI in this sector. The new policy
aims at changing that. The new policy aims to allow seamless transition to companies, which
have reconnaissance licence, to obtain a prospecting and eventually a mining licence. It will also
allow companies to just conduct reconnaissance and sell the data. The State governments will be
allowed to give preference to companies setting up manufacturing plants in the States. The policy
also proposes a local area development fund, with contribution from the mining company for the
development of the area around the mine. It is envisaged that the people affected by the mining
project will be necessarily made the stakeholders in the project.

Only new State-run refineries to get tax sops: The Finance Ministry has restricted tax holidays
to only new refineries run by public sector firms and has barred units under construction by
private sector companies like Essar Oil from the benefit. The seven-year income tax holiday to
refineries will be available before March 2012 only if they are owned by Public Sector Company
or built by companies where State-run-firms have 49 per cent stake. For the other refineries to be
eligible for the tax sops they should have been notified before May 31, 2008.

Poverty redefined: The Union government has decided to redefine poverty as deprivation by
including access to facilities like education, health, infrastructure, clean environment and benefits
for women and children. The new index will be used in the next round of the countrywide National
Sample Survey conducted to gauge poverty. The current index measures poverty mainly on the
basis of the number of calories consumed, income and the kind of dwelling. It fails to reflect the
number of people in India who don’t have access to the basic facilities enshrined in the
Constitution. To provide a broader national picture of deprivation, rather than absolute poverty,
the commission has decided to incorporate 27 national targets under six essential sectors. The
percentage of poor in 2004-05 was 21.8 of the country’s population. This came down to 20.4 per
cent in 2005-06.

Railway Budget, 2008: Railway Minister Lalu Prasad flagged off the government’s election
express on February 26, 2008, unveiling a super-populist budget that handed out poll-year
goodies to practically every section of the society. The budget slashed passenger fares for all
classes of tra-vel, upped existing discounts for students and women senior citizens, and
introduced discounts for new categories of travellers like AIDS patients and national honour
winners. The Railways recorded their highest-ever cash surplus (or profit): an impressive Rs
25,000 crore. The Railway Budget also sent out obvious signals about the perceived tilt towards
privatization of the utility.

Sixth Pay Commission recommendations implemented: The Union Cabinet bettered the
recommendations of the Sixth Pay Commission on August 4, 2008, coming up with a please-all
final award. The pay raise would be effective from January 1, 2006, but to save the exchequer
from the sudden load, the arrears of 22 months would be paid in two parts—40% in 2007-08 and
the remaining 60% in 2009-10. The financial implication in 2008-09 on account of the
implementation would be around Rs 15,700 crore on the Central budget and Rs 6,400 crore in
the railway budget. These figures do not account for the 60% arrears to be paid during 2009-10.
The final package makes a rise of 21% over what the pay panel had recommended.

Union Budget, 2008: Finance Minister P. Chidambaram presented the 2008 Budget on February
29, 2008. Mr Chidambaram shifted the growth logic from a decades-old reliance on more
government spending to a new one on tax breaks that would put more money into private hands
to fuel growth. Buttressing this incentive to boost disposable incomes was a bid to widen the
farmers’ constituency by a Rs 60,000 crore debt waiver package for an estimated 4 crore
farmers. Education remained the focus of the Union budget for the third consecutive year with
increase in allocation of 20 per cent for the sector.

Key Features of Budget

2008-2009
 The GDP increased by 7.5 per cent, 9.4 per cent and 9.6 per cent in first three years, of the
UPA government resulting in an unprecedented average growth rate of 8.8 per cent.
 Growth rate in agriculture for 2007-08 is estimated at 2.6 per cent.
 Food grain production in 2007-08, estimated at 219.32 million tonnes—an all time record. Rice
production at 94.08 million tonnes, maize at 16.78 million tonnes, soya bean at 9.45 million
tonnes, cotton at 23.38 million bales each, an all time record.
 Plan Expenditure estimated at Rs 243,386 crore.
 Non-Plan Expenditure estimated at Rs 507,499 crore.
 Revenue deficit for 2007-08 to be 1.4 per cent (against a BE of 1.5 per cent) and the fiscal
deficit to be 3.1 per cent (against a BE of 3.3 per cent); Revenue deficit for 2008-09 estimated at
Rs 55,184 crore, which amounts to 1.0 per cent of GDP; Fiscal deficit for 2008-09 estimated at
Rs 133,287 crore which is 2.5 per cent of GDP.
 Tax to GDP ratio that was 9.2 per cent in 2003-04, set to rise to 12.5 per cent at the end of
2007-08.
 Four services brought under service tax net namely, asset management service provided
under ULIP, services provided by stock/commodity exchanges and clearing houses; right to use
goods, in cases where VAT is not payable; and customised software.
 Threshold limit of exemption for small service providers increased from Rs 8 lakh per year to
Rs 10 lakh per year; about 65,000 small service providers go out of the tax net.
 Threshold limit of exemption from personal income tax in the case of all assessees increased
to Rs 150,000.
 In case of a woman assessee, the threshold limit increased from Rs 145,000 to Rs 180,000; for
a senior citizen, the threshold limit increased from Rs 195,000 to Rs 225,000.
Senior Citizen Saving Scheme 2004 and the Post Office Time Deposit Account added to the
basket of saving instruments under Section 80C of the Income Tax Act.
 Additional deduction of Rs 15,000 allowed under Section 80D to an
individual paying medical insurance premium for his/her parent or parents.
Central Sales Tax rate being reduced from 3 per cent to 2 per cent from April 1, 2008.
Roadmap for Goods and Service Tax being prepared for introduction of GST from April 1,
2010.
Rashtriya Krishi Vikas Yojana launched with an outlay of Rs 25,000 crore, National Food
Security Mission with an outlay of Rs 4,882 crore under National Policy for Farmers.
 Agricultural credit poised to reach Rs 2,40,000 crore by March, 2008.
 11.4 crore children covered under Mid Day Meal Scheme, the largest school lunch programme
in the world.
 1,82,000 girls enrolled in residential schools under Kasturba Gandhi Balika Vidyalaya Scheme.

 Three IISERs at Mohali, Pune and Kolkata, and an IIIT at Kanchipuram have started
functioning.
 Rs 85 crore allocated for Innovation in Science Pursuit for Inspired Research (INSPIRE).
 Rs 16,534 crore allocated for the health sector marking an increase of 15% over 2007-08.
 Rashtriya Swasthya Bima Yojana to provide health cover of Rs 30,000 for every worker in the
unorganised sector falling under the BPL category will be launched in Delhi and in the States of
Haryana and Rajasthan on April 1, 2008.
 National Programme for the Elderly to be started in 2008-09 with a Plan outlay of Rs 400
crore.
n? Remuneration of Anganwadi workers being increased from Rs 1,000 per month to Rs 1,500
per month; remuneration of Anganwadi Helpers increased from Rs 500 per month to
Rs 750 per month.
 National Rural Employment Guarantee Scheme (NREGS) to be rolled out to all 596 rural
districts in India.
 Life Insurance Corporation of India being asked to scale up Janashree Bima Yojana scheme to
cover all women self-help groups that are
credit-linked to the banks.
 Gross Capital Formation (GCF) in agriculture as a proportion of GDP in the agriculture sector
improves from a low of 10.2 per cent in 2003-04 to 12.5 per cent in 2006-07; Target to raise it to
16 per cent during the Eleventh Plan to achieve the growth rate of 4 per cent.
 National Plant Protection Training Institute at Hyderabad to be converted and upgraded into an
autonomous National Institute of Plant Health
Management.
 Prof Vaidyanathan Committee's report on reviving the short-term cooperative credit structure
under implementation in 17 States.
 Scheme of Debt Waiver and Debt Relief for farmers to cover all loans disbursed by scheduled
commercial banks, regional rural banks and cooperative credit institutions up to March 31, 2007
and overdue as on December 31, 2007.
 Saving rate and investment rate estimated to be 35.6 per cent by the end of 2007-08.
 Rajiv Gandhi Grameen Vidyutikaran Yojana to be continued during the Eleventh Plan period
with a capital subsidy of Rs 28,000 crore; allocation of Rs 5,500 crore for 2008-09.
 Aam Admi Bima Yojana to provide insurance cover to poor households.
 Rashtriya Swasthya Bima Yojana to be implemented with effect from April 1, 2008; Indira
Gandhi National Old Age Pension Scheme enlarged to include all persons over 65 years falling
under the BPL category.
 Allocation for Defence to be increased by 10 per cent from Rs 96,000 crore to Rs 105,600
crore.
 Special grant of Rs 100 crore awarded to three institutions of excellence for 2008-09: (i)
Mahatma Phule Krishi Vidyapeeth, Rahuri, Maharashtra, (ii) University of Mysore, and (iii) Delhi
University.

POLITICAL
Amarnath land deal: Jammu broke into wild celebrations on August 31, 2008 after an agreement
between a government panel led by Governor N.N. Vohra and a conglomerate of Hindu groups
gave exclusive right to the Shri Amarnath Shrine Board (SASB) on forestland at Baltal for use
during the pilgrimage season. According to the agreement, the State government will set aside
land at Baltal and Domail, comprising 800 kanal, for exclusive use by SASB for the purpose of
yatra. The proprietary status of the land, however, shall not undergo any change. While PDP and
Hurriyat Conference rejected the deal, National Conference gave it a thumbs-up.

Prime Minister wins trust of Lok Sabha: After a day of high drama, backstage deals and frayed
nerves, the Manmohan Singh government, July 22, 2008, won the trust vote in the Lok Sabha.
Although the government won comfortably 275 against 256 votes the exercise produced a
damaging moral and ethical deficit for the government and its leadership. The voting was
conducted on the back of an unsavoury episode of cash for votes. Earlier, on July 8, after rounds
of wheels within wheels politicking, where the Leftists and the government vied to outdo each
other, the Communists had ended their association with the UPA government thus prompting the
necessity for a vote of confidence.

Soren takes over as Chief Minister of Jharkhand: On August 27, 2008, JMM president Shibu
Soren was sworn in as the sixth Chief Minister of Jharkhand after a wait of nearly three-and-a-half
years. This development ended the more than week-long political drama that began with the
withdrawal of support by the JMM to the Madhu Koda-led UPA government, which finally forced
the Chief Minister to resign. Significantly, the independents shifted allegiance to Soren in
exchange of their 12-point demand. During his first stint as Chief Minister, which lasted only for
nine days, Soren had to step down as he failed to obtain majority on March 11, 2005.

FOREIGN RELATIONS
Visit of Syrian President: Demonstrating its commitment to the Arab cause, India accorded a
grand welcome to Syrian President Bashar al-Assad who visited on June 18, 2008. President
Assad called for cooperation between India and Syria in the fight against terrorism, while
emphasizing that there was tremendous potential for expanding trade and economic relations
between the two countries. India and Syria also signed three major agreements pertaining to the
avoidance of double taxation and prevention of fiscal evasion with respect to taxes, multilateral
promotion and protection of investments and cooperation in the field of agriculture and allied
sectors.

India’s report on nuclear

safety lauded in Vienna: India’s first national report on nuclear power plants safety has been very
well received and appreciated at the 4th Review Meeting of the Convention of Nuclear Safety
(CNS) in Vienna. India presented its 206-page report for the first time. The report included the
effective regulatory mechanism for its 17 operating nuclear plants and six plants under
construction.

NSG clears entry to N-Commerce: On September 7, 2008 India gained unique status as the
only nuclear weapons power to be allowed global nuclear commerce without signing either the
Nuclear Non-proliferation Treaty or Comprehensive Test Ban Treaty, until now a precondition for
entering the elite nuclear club. When the NSG “adjusted the guidelines” for India, after 76 hours
of high drama, it marked a delicious irony. NSG had come into being 34 years ago as a response
to India’s 1974 Pokharan test and yet, on September 7, the NSG bended its rules to
accommodate India’s nuclear ambitions. The deal will not just give India access to nuclear fissile
material and technology to mount a credible nuclear energy programme, it will also open up
certain key high-tech industries such as pharma, IT, space and defence.

Earlier, in a significant vote of confidence for the Indo-US civilian nuclear deal, the IAEA board of
governors, on August 1, 2008, passed the India-specific safeguards agreement by a consensus,
allowing India to take the next step of seeking a Nuclear Suppliers Group (NSG) waiver. The fact
that the board agreed by consensus is significant as this means that hardliner non-proliferation
countries like Ireland, Austria and Switzerland, which are also NSG members, supported the
safeguards agreement. Even Pakistan, which had been threatening to push for a vote in the
IAEA, quietly supported the safeguards agreement in the end.

PM calls on Indian Ocean navies to pool resources: On February 14, 2008, India launched a
unique endeavour to forge cooperation among navies of the Indian Ocean Region (IOR), with
Prime Minister Manmohan Singh urging all littoral States to pool their resources to take on
emerging threats like transnational crimes and terrorism. Inaugurating the forum, dubbed the
Indian Ocean Naval Symposium (IONS), which was attended by Naval Chiefs from almost 30
countries, Mr Singh said the expansion in trade and economic growth in the region dictated the
need to ensure the safety and security of the sea lanes.

Visit of President Karzai of Afghanistan: Afghanistan President Hamid Karzai came calling on
Prime Minister Manmohan Singh on August 4, 2008, to personally condole the Indian leadership
over the July 7, 2008 car bomb attack on the Indian embassy in Kabul and the serial blasts in
Bangalore and Ahmedabad. During their meeting, the two leaders expressed their firm resolve to
fight terrorism unitedly. Clearly demonstrating that New Delhi would not be deterred by incidents
like the embassy bombing and fulfil all its commitments to Afghanistan, Dr Manmohan Singh
pledged an additional amount of $450 million over and above the existing $750 million to meet
the requirements of India’s ongoing and upcoming projects in the war-ravaged nation.

India-Africa Summit: India hosted its first India-Africa Heads of State Summit in New Delhi on
April 8-9, 2008, as it tries to match China’s ever-growing clout on the mineral-rich continent. As
India seeks to intensify its engagement with Africa, Prime Minister Manmohan Singh launched the
Summit by almost doubling the lines of credit to that continent to $ 5.4 billion. India also opened
its market for goods from Africa through a duty-free preference scheme for least developed
countries, 34 of which are located in Africa. Mr Singh also announced an enhanced quota of
1,600 seats annually for Africans under its flagship technical training scheme, ITEC.

India, ASEAN ink free trade deal: On August 28, 2008, India concluded negotiations on a Free
Trade Agreement (FTA) with the ASEAN bloc, which will ensure lowering of duties and free flow
of trade in goods. The agreement will create a market of over 1.5 billion people in the region. The
main countries that will be included in the new trade bloc are India, Thailand, Indonesia,
Malaysia, Myanmar, Vietnam, the Philippines and Indonesia.

Fifth Australia-India Foreign Ministers Framework Dialogue: At the fifth Australia-India

Foreign Ministers Framework Dialogue held on June 23, 2008, India and
Australia underlined the strong bonds and enduring shared interests that underpin this bilateral
relationship. They signed an Extradition Treaty and a Mutual Legal Assistance Treaty,
underscoring the willingness of the two countries to collaborate and address criminal matters in a
practical way. Australia, however, conveyed that it will not lift its ban on uranium exports to India
as long as the latter doesn’t sign the Nuclear Non-Proliferation Treaty (NPT). Both ministers also
agreed to strengthen intelligence cooperation, including on counter-terrorism issues. The two
ministers also announced a new forum, the Australia-India Roundtable convened by the Sydney-
based Lowy Institute for International Policy and the New Delhi-based Indian Council for World
Affairs, to extend the political partnership between the two countries.

Kolkata to Dhaka train after 43 years: After a gap of over four decades, rail services between
Kolkata and Dhaka resumed on April 14, 2008, with the simultaneous launch of “Moitree Express”
from Kolkata and Bangladeshi capital Dhaka. The move is aimed a strengthening ties between
the two neighbours. The rail connection between Kolkata and Dhaka was snapped during the
1965 Indo-Pak conflict when Bangladesh was part of Pakistan. However, India and Bangladesh,
in 1996, resumed direct bus service linking Kolkata and Dhaka. The Moitree (friendship) Express
will cover 538-km running 120 km on the Indian soil and the rest in Bangladeshi territory.

PM’s Bhutan visit: Prime Minister Manmohan Singh visited Bhutan on May 16, 2008, for a two-
day official visit, where he had the honour of being the first international leader to address a joint
session of the newly constituted Bhutanese Parliament. The visit also coincided with the 50th
anniversary of India’s first Prime Minister Jawaharlal Nehru’s visit to Bhutan. The Prime Minister
held talks with the previous king, Jigme Singye Wangchuk, and his son and the present monarch,
Jigme Khesar Namgyel Wangchuk. He also had extensive discussions with his Bhutanese
counterpart Jigne Thnley. During his stay in Bhutan, the Prime Minister dedicated the 1,020 MW
Tala power project to the Bhutanese people and layed the foundation stone of another hydro-
electric project with a capacity of 1,095 MW at Punatsangchu.

President Patil arrives in Bhutan: Heralding a new era in bilateral relationship with Bhutan,
President Pratibha Patil began her maiden four-day visit to the Himalayan nation of Bhutan on
November 5, 2008. During her visit she also attended the coronation of its 5th King Jigme
Khesar Namgyel Wangchuck.

PM’s China visit: Prime Minister Manmohan Singh visited. Building on a much-improved bilateral
relationship, Prime Minister Manmohan Singh and his counter-part Wen Jiabao, on January 14,
2008, signed a joint declaration titled “A Shared Vision for the 21st Century”. In another advance
over previous formulations, China supported India’s aspirations to play a greater role in the
United Nations, including in the Security Council. Taking forward their 2006 accord, the two
countries pledged to promote bilateral cooperation in civil nuclear energy, consistent with their
respective international commitments.

Pranab Mukherjee’s China visit: External Affairs Minister Pranab Mukherjee arrived in the
southern Chinese city of Guangzhou in first week of June 2008, kick-starting his four-day visit to
China, during which the boundary row and irritants surrounding it dominated his talks with the
Chinese leadership. India used the opportunity to convey to the Chinese leaders that it was not
ready to bring the Sikkim issue in the boundary talks because there was no dispute concerning
that portion of the boundary with China. Mukherjee returned extremely satisfied with the talks that
covered a range of issues, including plans for the next military exercise between the two
countries in India by end 2008. The two countries renewed a deal on cooperation over sharing of
hydrological data and on monitoring the situation to guard against possible floods.

India, China hold first joint military exercise: In an atmosphere tinged with the Hindi-Chini
Bhai Bhai spirit, Indian troops arrived on December 20, 2007, in China, to a warm welcome by the
Chinese hosts for the first-ever Sino-Indian joint military exercise in a hilly terrain in South
western Yunnan province. The Indian troops were drawn from the Jammu and Kashmir Light
Infantry. Military cooperation gives the two countries a way to bring vision to their efforts to
improve relations.

India, EU to sign open skies pact: Air India, Jet Airways, JetLite and the Deccan-Kingfisher
combine will soon get more access to European destinations. A liberal aviation pact between
India and the European Union is on the cards, which will enable this as well as give EU carriers
better access to India. According to civil aviation ministry sources, Indian carriers will get to
operate a virtually unrestricted number of flights to European destinations. On a reciprocal basis,
European carriers will also get similar market access in India and be able to ink pacts with Indian
counterparts without going through elaborate government clearances.

India to buy N-reactors from France: India’s nuclear isolation ended on October 1, 2008 when
France agreed to sell reactors and fuel to Delhi. This French factor came just 24 days after the
Nuclear Suppliers Group (NSG) amended its guidelines governing civil atomic commerce. The
pact was signed during visit of Prime Minister Manmohan Singh to France and effectively ended
the 34-year-old sanctions imposed by the NSG after India conducted its first nuclear test in 1974.
India also signed a bilateral social security agreement.Earlier, French President Nicolas Sarkozy
visited India from January 25, 2008. He was the chief guest at the Republic Day parade. India
and France signed five agreements, including one for construction and operation of a nuclear
reactor at Cadarache in France, which is the home of the ITER project. A pact for transfer of
sentenced prisoners was also signed. President Sarkozy, who is known for his hardline stance
against Islamic radicalism, agreed to work with India in counter-terrorism efforts.

Visit of Iranian President: On April 29, 2008, Iranian President Mahmoud Ahmadinejad arrived
in India on his first official visit. He had visited Pakistan before moving on to Sri
Lanka. The main engagement of Iranian President Mahmoud Ahmadinejad’s visit to the Indian
sub-continent was to sign agreements with the Sri Lankan government for setting up an oil
refinery and a hydropower project. The brief stopovers at Islamabad and New Delhi were made to
explore avenues of economic cooperation.

Prime Minister’s Japan visit: Prime Minister Manmohan Singh arrived in Tokyo on October 21,
2008 for a three-day visit. The highlight of the visit was a decision to proceed with the so-called
dedicated freight corridor, a project that seeks to link through a railway freight line, India’s east
and west coasts, and also envisages an industrial belt coming up along the corridor. Prime
Minister Manmohan Singh and his Japanese counterpart Taro Aso stressed that their growing
economic and strategic relations had nothing to do with a third country especially China. Mr Singh
went out of his way to thank Japan for not coming in the way of the Indo-US nuclear deal at the
Nuclear Supplies Group (NSG) in Vienna. Mr Aso said Japan hoped India would stick to its
nuclear-test moratorium.
Japan has committed Rs 8,582 crore as assistance for developing nine infrastructure projects in
India. The assistance will help in undertaking projects such as the Kolkata metro, Hogennakal
water supply project and Tamil Nadu urban infrastructure project. The second phase of the
Delhi metro project will also be funded by Japan. This is the highest-ever official development
assistance by the Japanese government to India.

President Pratibha Patil’s visit to Latin America: Seeking to infuse new warmth in India’s
relations with Latin American countries, President Pratibha Devisingh Patil, on April 13, 2008,
embarked on a 14-day official trip to Brazil, Mexico and Chile. This was the maiden official visit of
India’s first woman President. During the Brazil leg she visited Sau Paulo, Rio de Janeiro and
Brasilia. In Mexico she travelled to Mexico City and Guadalajara. In the end she visited Santiago,
the capital of Chile.

India, Malaysia to step up defence cooperation: Stepping up defence cooperation with

Malaysia, India said on January 8, 2008, that it would train the Southeast Asian country’s Air
Force personnel to fly Russian Su-30 MKM fighters and hold joint military exercises. The two
sides also agreed to strengthen efforts to combat terrorism.

India, Myanmar ink four pacts: India will finance power transmission lines in Myanmar, with
which it has also signed an investment protection agreement to boost economic ties. A total of
four agreements have been signed, including regular banking arrangement for border trade. The
two countries have also entered into a Bilateral Investment Promotion Agreement (BIPA) to
encourage flow of funds. The trade pact provides a framework for resolution of disputes,
promotion and protection of investment, extending national and MFN treatment, repatriation of
investment and returns and entry and sojourn of technical and managerial personnel, an official
statement said here.

Visit of Prime Minister of Nepal: Nepal’s Prime Minister Prachanda visited India on September
16, 2008. India used the occasion to agree to Nepal’s long-standing demand for review of the 58-
year-old bilateral Trade and Transit Treaty, which has a bearing on almost all aspects of ties
between the two countries, saying it was important to carry forward the relationship between the
neighbours. India and Nepal also decided to take preventive measures for the protection of
barrages on the Gandak and other rivers under the existing bilateral arrangements in the wake of
the Kosi disaster.

Manmohan Singh-Zardari meeting in USA: Prime Minister Man-mohan Singh met with
President Asif Ali Zardari of Pakistan on September 25, 2008 on the sidelines of the UN General
Assembly meeting in New York. During the meeting India reminded Pakistan yet again of its
promise to crack down on anti-India terror groups operating from its territory. At the end of it, India
is understood to have secured a fresh pledge from Pakistan that it would honour its word. Singh
and Zardari sought to bolster confidence between the two neighbours by agreeing to cross-LoC
trade on the Srinagar-Muzaffarabad and Poonch-Rawalakot roads from October 21, 2008. The
meeting was candid, and for most part, without aides.

Pakistan breaches ceasefire: The Indian Army has accused Pakistan of violating the ceasefire
by firing on Indian positions near the Line of Control in Tangdhar sector in the Valley on June 22,
2008. A defence spokesperson said the firing took place at 6.15 a.m. and lasted for about 20
minutes. No casualties were reported. Prime Minister Manmohan Singh described the
development as “worrisome”. He said the Indian DGMO (Director General of Military Operations)
had taken up the matter with his Pakistani counterpart. Defence Minister A.K. Antony also
expressed concern. This was the first time after Pakistan declared a ceasefire along the LoC in
November 2003 that its troops fired at Indian positions in the Valley.

Trade across LoC after 60 years: The faltering India-Pakistan peace process received a shot in
the arm on October 21, 2008, as the two countries opened trade links across divided Kashmir for
the first time in six decades. The opening, hailed as the most significant confidence-building
measure since the launch of Srinagar-Muzaffarabad bus service in 2005, is aimed at reducing
tensions between the nuclear-armed neighbours. Salamabad village, the venue of the ceremony,
wore a festive. The route, however, largely remains symbolic as limited trade would be allowed
across the de facto border; only four trucks will be allowed each side once a week.

Visit of Pranab Mukherjee to Pakistan: On May 21, 2008, Foreign Ministers of Pakistan and
India agreed to carry forward the composite dialogue and hold the fifth round on an eight-point
agenda, which includes Kashmir, trade and anti-terrorism, in mid-July. It was also announced that
Prime Minister Manmohan Singh would visit Pakistan later in 2008. On Siachin, it was accepted
that there was slow progress but Pakistan said it has proposed a package to expedite it. The
Srinagar-Muzaffarabad and Poonch-Rawalakot bus services will now become weekly instead of
the existing fortnightly affairs. The two countries also signed a consular agreement on access to
prisoners being kept in jails; each will provide on a regular basis an updated and comprehensive
list of prisoners to the other. On trade and commerce, the two countries agreed to discuss further
steps for facilitating trade and “redressing” the trade imbalance.

India gives land for Palestine Embassy: In a gesture of solidarity with the Palestinian cause, on
October 7, 2008, India gifted to the Palestinian National Authority (PNA) a prized piece of land in
the New Delhi’s diplomatic enclave for building its Embassy. India also announced a grant of
$10m as budgetary support to the PNA to help meet its immediate requirements and an
additional $10m as assistance for development projects. India and Palestine have also signed an
agreement on the construction of a school in the name of the India’s first Prime Minister
Jawaharlal Nehru in Abu Dees in Palestine. The gift underlines India’s consistent solidarity and
commitment to an independent Palestine and is seen by many as a balancing exercise in view of
New Delhi’s growing relations with Israel.

India, Russia defence ties enter new phase: On September 29, 2008, India reaffirmed its
relationship with its oldest defence ally—Russia. The two countries signalled a shift in the earlier
“buyer-seller relationship” by announcing: “We will now be partners in jointly developing next
generation of weapons, aircraft and hold joint scientific research.” Besides, the two nations
announced plans to increase the frequency and scope of bilateral military exercises.

Visit of Russian Prime Minister: On February 12, 2008, Prime Minister Manmohan Singh
briefed his Russian counterpart Victor A. Zubkov, during the later’s visit to India, on his
government’s ongoing efforts to finalise a safeguards agreement with the IAEA. The two Prime
Ministers also discussed all aspects of Indo-Russian relations and vowed to take their strategic
partnership from strength to strength. After their one-to-one and delegation-level talks, the two
Prime Ministers jointly inaugurated the Year of Russia in India at a gala concert in Purana Qila.

India, Singapore to upgrade ties: In a significant move to deepen the bilateral ties, India and
Singapore have decided to set up a bilateral strategic dialogue mechanism to identify newer
areas of cooperation and exchange notes on political and security issues. Singapore is the latest
addition to list of the countries with which India already has an institutionalised strategic dialogue
mechanism. Initially, the strategic dialogue mechanism with Singapore will operate in a Track 2
diplomacy mode. This was disclosed by Singapore Prime Minister Lee Hsien Loong to mark the
first day of the Incredible India @ 60 campaign, held in Singapore by the government of India and
the Confederation of Indian Industry (CII).
India-UK: British Prime Minister Gordan Brown visited India in January 2008. The 4th India-UK
summit concluded on January 21, with the two countries vowing to forge ever-closer linkages on
all major political and economic issues including counter-terrorism and climate change. A joint
statement, signed by the two Prime Ministers said UK supported the Indo-US civil nuclear co-
operation initiative with all its elements, including an appropriate India-specific exemption to the
Nuclear Suppliers Group guidelines.

India, US to strengthen military ties: On October 16, 2008, India and the USA for the first time
agreed to work together to formulate a doctrine and raise the level of participation in joint military
exercises during the meeting of chief of US army General George William Casey with his Indian
counterpart General Deepak Kapoor, in New Delhi. They also discussed security-related
developments in south-east Asia, especially in Pakistan, Nepal and China. The two Chiefs also
agreed to cooperate in exchange of military and related technologies for the development of
enhanced capabilities for the future combat soldier (a programme of the Indian Army referred to
as FINSAS—Future Infantry Soldier as a System). General Casey also visited the Siachin Glacier
despite loud protests by Pakistan, a clear indication from Washington that the boundaries
between India and Pakistan, including the Line of Control, will not be redrawn, and any solution to
the Kashmir issue will be within the ambit of the current boundaries.

Nuclear Deal signed with USA: Three decades of nuclear apartheid that New Delhi had been
subjected to, ended, appropriately enough, on October 2, 2008 following the final US Senate vote
which approved the US-India civilian nuclear agreement with a thumping 86-13 margin. On
October 9, extending Diwali greetings to Indians all around the world, President George Bush
signed the nuclear deal legislation into law. On October 10, Foreign Minister Pranab Mukherji
visited Washington to sign the 123 Agreement with Condoleeza Rice, ending the process that
started in 2005 with the joint statement of Mr Bush and Prime Minister Manmohan Singh. The
deal, which is the centerpiece of Indo-US ties, is also expected to rejuvenate ties in other sectors
as well.

India and Myanmar working to strengthen ties: The second highest ranked general of
Myanmar, Maung Aye, visited India in early April 2008 to take forward an initiative that will give
land-locked States in the North-East access to the Bay of Bengal. The Indian government, earlier
on March 27, 2008, paved the way for the country to pay for and be involved in upgrading
Myanmar’s Sittwe port and Kaladan waterway, when it approved a Rs 535.91 crore multi-modal
transit transport project under the Aid to Myanmar initiative. The fact that Bangladesh has refused
to give any transit rights for trucks to carry goods through to the North-East makes the Myanmar
project that much more
significant.

RESERVATIONS
Cabinet clears women’s quota Bill: On May 5, 2008, the Union Cabinet cleared the women’s
reservation Bill that is aimed at providing 33 per cent quota for women in Parliament and State
legislatures. The Bill was tabled in the Rajya Sabha on May 6. The emergency action on the Bill
was necessitated after the Lok Sabha was adjourned sine die and the Bill would have lapsed if
not presented immediately in the Rajya Sabha.

Gujjars’ quota war: The Rajasthan Gujjars’ demand for inclusion in the Scheduled Tribe (ST)
category has turned violent in the past year, as the community feels squeezed out of OBC quota
benefits. Sources say that the demand—first put forth in 1961-62—has to be seen in relation to
the inclusion of Jats in the Rajasthan OBC list in 1999. With a significant presence in about 100
assembly constituencies, and 36 MLAs in the State, Jats are politically and educationally more
powerful than Gujjars—who make up about 5 per cent of the population—and other OBC castes.
Consequently, Gujjars want inclusion in the ST quota, where Meenas are practically the sole
beneficiaries. Under an agreement finally reached between the Gujjars in Rajasthan will be given
a 5% job quota as a special category. Apparently keeping in mind the sensitivities of the
influential Meena community, which already has ST status in the State, Chief Minister Raje
sought to allay misgivings about the impact of the quota for Gujjars on the present reservation
system. This quota would not have any adverse effect on the present reservation system in the
State, she said.

SC clears OBC quota law: Ending uncertainty over the controversial law providing for 27 per
cent reservation for Other Backward Classes in Central educational institutions, including IITs and
IIMs, the Supreme Court, on April 10, 2008, upheld its validity but ruled that the creamy layer
among the backwards would not get reservation. A five-judge Constitution bench headed by Chief
Justice K.G. Balakrishnan upheld the Central Educational Institutions (Reservation in Admission)
Act, 2006, paving the way for its implementation in all Central educational institutions.

Vacant OBC seats will go to general category: The Supreme Court has put an end to the
confusion over unfilled OBC quota, saying it had maintained that all vacant seats under the 27%
OBC quota in Central educational institutions, including IITs and IIMs, should go to the general
category. The five-judge bench also reiterated its earlier order that the Centre could not dilute
merit by lowering the cutoff marks for backward class students too far below that prescribed for
the general category.

SCANDALS
Kidney racket: A Rs 100 crore kidney transplant racket that thrived on exploiting the poor and
miserable with false promises and then removing their kidneys by force was busted in Gurgaon,
Haryana, on January 25, 2008. The sheer scale of the racket organised and brazen that spanned
six States and catered to the rich, including NRIs and foreigners, has left the authorities shaken. It
was carried out right under the nose of the police and could have been thriving for the past 15
years, according to one account, though Gurgaon police said it was eight years old. Four doctors
and about five touts have so far been identified. But what’s shocking is that this racket had been
busted four times earlier, with Dr Amit Kumar, the mastermind, figuring in police files. Dr Amit
Kumar, a surgeon from Maharashtra, say the police, has many aliases. He also has several
passports and property worth crores in Gurgaon, Mumbai and Canada.

Two senior Delhi lawyers held guilty of contempt: The Delhi High Court has convicted two
senior lawyers R.K. Anand and I.U. Khan of criminal contempt for trying to persuade key witness
Sunil Kulkarni in the BMW hit-and-run case to turn hostile. The Court held the two guilty of
obstructing the administration of justice and debarred the duo from appearing in High Court and
lower courts for four months. It also recommended that they be stripped of their designation of
senior advocate. This was the first time that a media report of a nexus between the prosecution
and defence in a case led to court action against lawyers.

TELECOM & BROADCASTING

3G auction finally gets go ahead: After nearly two years of debate and controversy, the
government finally announced on August 1, 2008, its plans for a global auction of third generation
(3G) radio frequencies and also for the introduction of Mobile Number Portability (MNP). The
government will also auction spectrum for Broadband Wireless Access (BWA) services, also
called WiMAX services. These big-bang policy initiatives will change the telecom landscape in the
country and bring telecom services in India at par with the rest of the world. The government
hopes to raise between Rs 30,000-Rs 40,000 crore from the auction of 3G spectrum. The global
3-G auction offers a lifeline to both new entrants and international communication majors such as
AT&T, Verizon and others to gain a foothold in the world’s fastest growing mobile market.
Cabinet nod to IPTV policy: The Union government has cleared the policy framework for the
commercial roll out of Internet Protocol TV (IPTV) services, a new cable TV delivery
platform that would benefit telecom players as well as consumers. The Union Cabinet has also
given its approval to amend the policy guidelines for down-linking of TV channels for allowing
broadcasters to provide content to IPTV service providers. IPTV involves delivery of television
and video signals over a broadband network.

TERRORISM;
LAW & ORDER
Agartala riddled with blasts: On October 1, 2008, two persons were killed and over 100 injured
when a series of five explosions rocked Agartala, the capital of Tripura, within a span of 90
minutes. The low-intensity bombs were planted either on bicycles or motorcycles. The blasts
occurred in Tripura four days after the Army shot dead seven suspected Huji militants in Dhubri
district bordering Bangladesh in western Assam.

Blasts rip through Assam: On October 30, 2008, thirteen bomb blasts in quick succession
ripped through Guwahati, the commercial capital of Assam, and three other towns, killing more
than 70. A little-known group called the Islamic Secu-rity Force-Indian Mujahideen claimed
responsibility for the serial blasts. The group is believed to be an offshoot of older Islamist outfits
such as the Muslim United Liberation Tigers of Asom. It was formed mostly by ex-activists of
SIMI.

Bodo-Bangla clashes flare up: On October 5, 2008, at least seven persons were killed when
police fired on a group of Bangladeshi migrants who tried to defy shoot-at-sight orders in
troubled-torn districts of Darrang and Udalguri even as violent clashes between the immigrant
workers and tribal Bodos claimed seven more lives. The clashes that broke out over stealing of
cattle have claimed more than 30 lives.

Bomb blasts rock Delhi: On September 13, 2008, at least 25 persons were killed and over 100
injured when five low-intensity serial bomb blasts rocked three major markets of Delhi, in what
appeared to be a meticulously planned terrorist attack. Indian Mujahideen, a home-grown terror
organisation has owned responsibility for the blasts in the capital via an e-mail to various media
organisations.

Conversion fire engulfs Karnataka: After Kandhmal, it was the turn of Christians in Karnataka
to face the ire of right-wing Hindu mobs. Suspected Bajrang Dal activists vandalized seven
churches and a house in Mangalore Udupi and Chikmagalur districts in September 2008,
protesting alleged conversions of Hindus to Christianity. Some preachers and parishioners were
assaulted and church property damaged in the attacks.

Orissa burns: In the month of August 2008, attacks on churches and Christians continued in
Orissa claiming at least nine lives. Violence escalated during the Vishwa Hindu Parishad-
sponsored State-wide bandh to protest the murder of its leader Swami Lakshmananda Saraswati
and four of his disciples. The bandh turned communal with protestors attacking churches and
missionary schools across the State.

Fidayeen attack on CRPF camp in UP: Year 2008 began on an ominous note when, in a
daring pre-dawn attack, heavily-armed terrorists, suspected to be belonging to the Lashkar-e-
Tayyaba, stormed a CRPF recruitment centre at Rampur in the Rohilla-khand region of Uttar
Pradesh, killing eight persons, including seven jawans and a civilian. This was the first time a
fortified security installation had been attacked outside the State of Jammu and Kashmir.

Indian mission blast in Kabul: A suicide car bomb hit the Indian embassy in Kabul on July 7,
2008, killing 41 people and wounding 139, in an attack Afghan authorities said was coordinated
with foreign agents in the region, a likely reference to Pakistan. Afghan analysts argue Pakistan is
loath to see the emergence of a strong Afghanistan that is friendly to India and is secretly backing
the Taliban as a strategic asset, enabling Pakistani forces to concentrate on defending the Indian
border.

Maoist strikes: Thirty-six personnel of an elite anti-naxal force were drowned when, on June 29,
2008, Maoists struck in a big way, opening fire on a launch carrying the security personnel and
sinking the vessel in a reservoir near Malkanigri, Orissa. Earlier, on February 16, 2008, fifteen
persons, including 13 policemen, were killed by Maoists in a stunning siege of three police
stations in Nayagarh district headquarters, Orissa, barely 90 km from the State capital.

Serial blasts rock Bangalore, Ahmedabad: On July 25, 2008, a string of seven synchronized
bomb blasts shook Bangalore during the busy lunch hour, leaving two killed and injuring 12
others. A day after terror turned westwards to engineer more than 20 blasts in Ahmedabad. More
than 40 people were killed. The explosions were clearly aimed at disrupting life in crowded areas,
affecting the economic activity in general.

Terror Strikes Jaipur: At least 80 people were killed and over 200 injured in seven explosions
that took place on May 13, 2008 evening in crowded areas of Jaipur. This was Rajasthan’s
second brush with terrorism in recent years—the last being a bomb blast at the Ajmer Sharif
Dargah of Moinuddin Chisti on October 11, 2007. The bombs were carried on bicycles to the
destinations before being exploded by the terrorists.

Terror strikes UP: Terror struck on November 23, 2007 in Uttar Pradesh when militants triggered
near-simultaneous blasts in court premises in Varanasi, Faizabad and the State capital Lucknow,
killing 14 people, some of them lawyers, and injuring over 50 other. Six bombs—three in
Varanasi, two in Faizabad and one in Lucknow—some planted on cycles, went off within a span
of 15 minutes in the crowded court complexes.

Three get life term for IC-814 hijack: Nine years after an FIR was registered into the hijacking
of an Indian Airlines plane from Kathmandu to Kandahar, the designated court in Patiala, Punjab,
on February 5, 2008, pronounced life term for three accused Abdul Latif, Bhupal Man Damai and
Dilip Kumar Bhujel. Ten persons, including seven Pakistani Nationals were held accused in the
case, but only three, including one Nepali—Bhupal Man Damai—and two Indians—Abdul Latif of
Mumbai and Dilip Kumar Bhujel of Kalimpong (WB)—could be arrested.

MISCELLANEOUS
12 guilty in Uphaar case: Ten years after a major fire engulfed Uphaar cinema hall leading to
the death of 59 people and injury to 114, a trial court has convicted owner businessmen Sushil
Ansal, Gopal Ansal and 10 others—among them six government officials—holding them
responsible for the tragedy. Seven other accused—four employees of Ansals and three officials
of Delhi Vidyut Board—have been convicted for a graver offence, culpable homicide not
amounting to murder.

IPL crowns India’s cricket czars: Cricket, Bollywood and big business came together in heady
cocktail on January 24, 2008, as corporates and film stars forked out millions of dollars at an
auction of city-franchises of the Indian Premier League, the BCCI’s mega-hyped Twenty20
competition. The BCCI wound up with a combined total of $ 723.6 million (Rs 2,853 crore);
factoring in the sale of TV rights, it has so far netted a total revenue of $ 1.749 billion (Rs 7,000
crore) from the IPL even before the first ball has been bowled.

Lifestyle diseases could cost India heavily: India could incur losses to the tune of $237 billion
by 2015 due to rise in lifestyle diseases like diabetes, stroke and cancer, because of unhealthy
workplaces, according to a new WHO report, “Preventing Communicable Diseases in the
workplace through Diet and Physical Activity”. The projected loss for China—the other fast
developing country—is a massive $558 billion, while the estimated figure for Russia and the UK is
$33 billion.

Smoking ban: From October 2, 2008 anyone smoking will be fined Rs 200 if found smoking at
any place outside personal spaces like home and car, and open public areas like pavements and
roads. The law came into effect after the Supreme Court rejected a petition of tobacco major ITC,
which sought a stay on the government’s smoking ban order. Places where you can’t smoke:
Workplaces, hospitals, stations, auditoria, amusement centres, cinema halls, restaurants, bars,
canteens, airports (except for smoking lounge), courts, educational institutions, libraries, banks,
shopping malls, monuments, parks, bus stops, public transport. Not listed as public places:
Roads, and inside a car with windows rolled up.

Stampedes are bigger killers than bomb blasts: Stampedes are bigger killers in India than
bomb blasts that so dramatically capture our mind space. In 2008 alone so far, over 360 people
lost their life in major stampedes compared to 156 killed by bomb blasts. This year is not an
aberration. Data collated for the last nearly nine years shows that while 875 people have lost their
lives in stampedes that were big enough to make the national press, 766 have been killed by
terror bombs.

CURRENT NATIONAL AFFAIRS-------------SEP 2009

EDUCATION
Sakshar Bharat Mission
Jhajjar’s (Haryana) 49-year-old neo-literate Roshni Devi emerged as the most powerful symbol of female literacy on
September 8, 2009—a goal to which India re-dedicated itself under the brand new Sakshar Bharat Mission, which was
launched by Prime Minister Manmohan Singh on the occasion of International Literacy Day.

The mission sets itself the goal of educating 70 million learners, 60 million of them women, by 2012 through an investment
of $1billion; it replaces the old adult literacy mission that began in 1988. The final goal is to take national literacy levels
from 64 per cent currently to 80 per cent by 2017, and reduce the gender gap from 21 per cent at present to 10 per cent,
eventually.

The reconstituted mission will focus on women, who have 54 per cent literacy rate against 75 per cent in males. Terming
the mission as UPA’s first step towards fulfilment of the promise (of female literacy) made in the President’s address in
2009, the Prime Minister said resources would not be a constraint in the urge to “educate all”.
The mission, in fact, makes a welcome departure from the past by making PRIs the fulcrum of literacy programmes. The
mission seeks to put learners in touch with their surroundings, hone their life skills, tell them of their arts, crafts and culture
and impart them continuing education, which was previously absent. The mammoth task would require 10 million teachers
(only matriculates and above to be recruited) three million managers, 70 lakh literacy centres and 210 million books.

HEALTH
By 2020, India will have 10m dementia patients
This can come as a shocker for India, which is yet to put in place a health programme for the country’s greying population.
The global burden of dementia—disorders of the brain that affect memory and language among the elderly—has been
seriously under estimated. The World Alzheimer’s Report 2009, prepared by King’s College, London says that there would
be 35 million people worldwide with dementia by 2010. That number is set to almost double every 20 years to 65.7 million
in 2030 and 115.4 million in 2050.

What’s worse, almost 60% of people with dementia in 2010 will be from low and middle income countries like India, rising
to 70.5% by 2050. This is a 10% increase over the earlier estimate made in 2005—meaning that the estimates made earlier
for India will also increase.

Worldwide, the economic cost of dementia has been estimated at $315 billion annually. The total annual costs per person
with dementia have been estimated as $1,521 in a low income country, rising to $4,588 in middle income countries and
$17,964 in high income countries.

The report recommended that the WHO declare dementia a health priority, and that countries, including India, develop a
plan for dealing with the greater numbers of dementia patients.

JUDICIARY
Gram Nyayalayas Act
The Central government has decided that the provisions of the Gram Nyayalayas Act shall come into force in the areas to
which this Act extends on October 2. The Gram Nyayalayas Act, 2008 has been enacted to provide for the establishment of
the Gram Nyayalayas at the grass roots level for the purpose of providing access to justice to the citizens at their door steps.
The salient features of the Gram Nyayalayas Act are as follows:

• Gram Nyayalayas are aimed at providing inexpensive justice to people in rural areas at their doorsteps;
• the Gram Nyayalaya shall be court of Judicial Magistrate of the first class and its presiding officer
(Nyayadhikari) shall be appointed by the State Government in consultation with the High Court.
• the Gram Nyayalaya shall be established for every Panchayat at intermediate level or a group of contiguous
Panchayats at intermediate level in a district or where there is no Panchayat at intermediate level in any State,
for a group of contiguous Panchayats;
• the Nyayadhikaris who will preside over these Gram Nyayalayas are strictly judicial officers and will be
drawing the same salary, deriving the same powers as First Class Magistrates working under High Courts;
• the Gram Nyayalaya shall be a mobile court and shall exercise the powers of both Criminal and Civil Courts;
• the seat of the Gram Nyayalaya will be located at the headquarters of the intermediate Panchayat, they will go to
villages, work there and dispose of the cases;
• the Gram Nyayalaya shall try criminal cases, civil suits, claims or disputes which are specified in the First
Schedule and the Second Schedule to the Act;
• the Central as well as the State Governments have been given power to amend the First Schedule and the Second
Schedule of the Act, as per their respective legislative competence;
• the Gram Nyayalaya shall follow summary procedure in criminal trial;
• the Gram Nyayalaya shall exercise the powers of a Civil Court with certain modifications and shall follow the
special procedure as provided in the Act;
• the Gram Nyayalaya shall try to settle the disputes as far as possible by bringing about conciliation between the
parties and for this purpose, it shall make use of the conciliators to be appointed for this purpose;
• the judgement and order passed by the Gram Nyayalaya shall be deemed to be a decree and to avoid delay in its
execution, the Gram Nyayalaya shall follow summary procedure for its execution;
• the Gram Nyayalaya shall not be bound by the rules of evidence provided in the Indian Evidence Act, 1872 but
shall be guided by the principles of natural justice and subject to any rule made by the High Court; Appeal in
criminal cases shall lie to the Court of Session, which shall be heard and disposed of within a period of six
months from the date of filing of such appeal; Appeal in civil cases shall lie to the District Court, which shall be
heard and disposed of within a period of six months from the date of filing of the appeal; A person accused of an
offence may file an application for plea bargaining.

The Central Government has decided to meet the non-recurring expenditure on the establishment of these Gram Nyayalayas
subject to a ceiling of Rs. 18.00 lakhs, out of which Rs. 10.00 lakhs is for construction of the court, Rs. 5.00 lakhs for
vehicle and Rs. 3.00 lakhs for office equipment. Government has also estimated that the Gram Nyayalayas upon
establishment would incur a recurring expenditure of Rs. 6.4 lakhs per annum on salaries etc. and proposes to share such
recurring expenditure with the State Government for the first three years within this ceiling.

More than 5000 Gram Nyayalayas are expected to be set up under the Act for which the Central government would provide
about Rs.1400 crores by way of assistance to the concerned States/Union Territories.

The setting up of Gram Nyayalayas will be an important measure to reduce arrears. The Gram Nyayalayas are likely to
reduce around 50 % of the pendency of cases in subordinate courts and also to take care of the new litigations which will be
disposed within six months. This measure will usher in great revolution in disposal of cases and also to take justice to the
doorsteps of the common man.

LAW POINT
No new shrines on public land: SC
The Supreme Court has directed all the States and the Union Territories not to allow construction of places of worship, be it
gurdwaras, temples, churches or mosques, on government land, particularly roads.

A Bench, comprising Justices Dalveer Bhandari and M.K. Sharma, passed the order, also asking all the State and UT
governments to review case-by-case such structures that had already come up, encroaching upon public land.

Directing the registry to serve notices on all the States and UTs within three days of passing of the judgement, in view of
the gravity of the situation which had "far-reaching consequences," the Bench said the heads of each district (collectors,
magistrates or deputy commissioners) to file status reports to their respective Chief Secretaries. The Chief Secretaries, in
turn, would directly appraise the apex court of the steps taken for keeping government land free from such encroachments,
the Bench said.

LEGISLATION
President signs Education Bill into law
Following the Presidential assent (granted on August 26, 2009), the government has issued a gazette notification of the law,
which seeks to provide free and compulsory education to all children aged from 6 to 14 years. The State governments will
have three years from the date of notification of the law to implement it. During this period, they will have to put in place
neighbourhood schools, minimum education infrastructure with notified pupil-teacher ratio and school management
societies to ensure proper implementation of the law.

Cost, by far, remains the gravest challenge in the implementation of the law, which would require Rs 2 lakh crore over the
next five years for its enforcement. The HRD Ministry has already admitted to an estimated shortfall of Rs 60,000 crore
over the period, with minister Kapil Sibal saying additional allocations would have to be made.

All States, meanwhile, have put their foot down on the issue of finances, saying they will require maximum possible
funding from the Centre to implement the law. At a meeting of the Central Advisory Board of Education, all State
education ministers drove home this point, with hill States like Himachal seeking 90 per cent central share in the funding.

There are also some apprehensions over the definition of the term “free education”. The matter was raised vociferously by
Archana Chitnis, Education Minister of Madhya Pradesh, who wanted the HRD Minister to clarify the meaning of term
“free”. “Free education would have to be defined by States,” Sibal said, adding that it could mean free books, uniform,
school bus travel or anything.

The States, however, feel leaving the definition of “free education” open could lead to confusion. The government feels the
model rules under the Act, expected to be formulated soon, would clarify most of the points. Also on the cards is a new
Centre-State finance sharing formula, for which National University for Education Planning and Research is developing
fresh cost estimates after factoring in the inflationary trend.
PLANNING & ECONOMY
Govt okays one percent subsidy on housing loans
Keeping up with another promise made by Finance Minister Pranab Mukherjee in his Budget speech of 2009, the
government has approved one per cent interest rate subvention for housing loans up to Rs.10 lakh. The Union Cabinet has
also given an approval for allocation of Rs.1,000 crore for the scheme. It will come as a major boost to the housing sector
and fuel greater development. The interest subsidy would be provided through the commercial banks and housing finance
companies registered with the National Housing Bank.

In another major decision the government also approved a “Rehabilitation Package” to provide additional relief to the
victims of 1984 riots with a financial outlay of Rs.714.76 crore. The package was issued earlier by Ministry of Home
Affairs on January 16, 2008 and was for States of Uttar Pradesh, Madhya Pradesh, Chhatisgarh, Haryana, Bihar, Jharkhand,
Jammu & Kashmir, Himachal Pradesh, Orissa, Maharashtra, Uttarakhand, Punjab and the NCT of Delhi. The main aim of
the proposal is fulfil the assurances given by the government in both the Houses of Parliament on the Report of Justice
Nanavati Commission of Inquiry into 1984 riots.

A decision has also been taken to release Interest Subvention to Public Sector Banks (PSBs), Cooperative Banks (Short
Term Cooperative Credit Structure-STCCS) and Regional Rural Banks (RRBs) and to NABARD for refinance to RRBs
and Cooperative Banks. This has been done to operationalise the announcement made in the Union Budget for ensuring that
the farmer receives short term crop loan at seven per cent per annum (six per cent for prompt payers) with an upper limit of
Rs.three lakh on the principal amount.

The interest subvention is available to Public Sector Banks, Regional Rural Banks (RRBs) and Cooperative Credit
Institutions (CCIs) on disbursements out of their own funds and to NABARD for concessional refinance to RRBs and
CCIs. For the year 2009-10, the target for flow of credit to agriculture sector has been revised from Rs.2,80,000 crore in
2008-09 to Rs.3,25,000 crore, of which the total short term crop loan disbursements by all banks is likely to be around
Rs.2,00,000 crore.

NREGS gets e-transparent

A unique software solution adopted by Andhra Pradesh has brought transparency and accountability in implementation of
National Rural Employment Guarantee Scheme (NREGS), the flagship programme of the UPA government. Developed by
Tata Consultancy Services (TCS), the web-based software package has helped check corruption, fix loopholes in
identification of beneficiaries and the works and resulted in effective implementation of the scheme, covering nearly 11
million people in the State.

From the time a job seeker enrolls with a local panchayat office, to monitoring of assigned work and final wage payment,
the entire process is registered and tracked online, using the software solution. The system allows the officials to sift
through entire data, including the number of job cards issued across 22 districts and identify the loopholes.

The progress of the NREGS works could be monitored through an automated system and the workers have been paid based
on the amount of work they complete, independent of the number of hours they put in.

In fact, Andhra Pradesh has been the first State to introduce social audit system to effectively monitor implementation of
the scheme. Social auditing involves a process where teams visit the NREGS work sites in every gram panchayat and
physically crosscheck the work done with the records. Each team has been led by district resource person and consists of
four to five persons drawn from civil society organisations.

Property as gift to be taxed now

The Income Tax Act has been amended with effect from October 1, 2009, to provide that any gift-in-kind—being an
immovable property or any other property—the value of which exceeds Rs 50,000, will become taxable in the hands of the
donee. The tax would have to paid by the recipient by including the amount in his taxable income.
Gifts received from local authorities, trusts or entities registered as charitable institutions would not attract the provisions of
the new tax norms.

But, the good news is that if the immovable property or property is received from a relative or received under a will as
inheritance it will not be taxed. Such a gift received on the occasion of marriage of the individual is also exempt from tax.
Prior to this change in the Income Tax Act, cash gifts exceeding Rs 25,000 were subject to tax. Then the Act was amended
with effect from April 1, 2006, to tax all cash gifts having aggregate value exceeding Rs 50,000. However, cash gifts
continue to enjoy exemptions as is available for gifts-in-kind.

FOREIGN RELATIONS
Trade, Tipaimukh dam to top Indo-Bangla talks
The entire gamut of bilateral issues, including the Tipaimukh dam issue, sharing of river waters, trade, border management
and combating terrorism, were discussed in a “congenial ambience” during Bangladesh Foreign Minister Dipu Moni's four-
day visit to India in September 2009. This was his first official trip to India since the installation of Prime Minister Sheikh
Hasina's Awami League to power following the December 29, 2008 general elections in Bangladesh.

The installation of the Awami League and the Congress party to power in the two countries created a congenial ambience to
settle the long-standing issues through constructive negotiations because of the historic links between the two parties since
the 1971 Bangladesh war.

Trade deficit is one such major issue. Business analysts said Bangladesh looked for stepping up its exports to the
landlocked seven north-eastern States and close the trade imbalance if the barriers were removed.

The two countries also share over 50 common rivers and there had not been any progress in distribution of waters of the
seven other rivers, including the Teesta.

The proposed Tipaimukh dam on the Barak river in Manipur dominated the centre-stage of Bangladesh-India-relations
during the past several months, though New Delhi assured Dhaka nothing would be done under the project that could affect
Bangladesh.

India, Mongolia ink nuke pact

On September 14, 2009, Mongolia became the fifth nation to sign a civil nuclear pact with India as New Delhi extended a
25 million US dollar soft loan to the Central Asian nation to help it mitigate the effects of the global financial meltdown.
The two countries also inked agreements for cooperation in the fields of health, cultural exchanges and statistical affairs.
The accords were signed after wide-ranging talks between Prime Minister Manmohan Singh and visiting Mongolian
President Tsakhiagiin Elbegdorj.

In a joint press interaction after the talks, Manmohan Singh said the two countries had reviewed the entire gamut of
bilateral relations and discussed issues of mutual concern. He said the two countries had agreed on deeper cooperation in
the field of mining and agriculture. The two leaders also stressed on bilateral investment protection and considering ways to
avoid double taxation.

Great significance is being attached to the MoU between the two countries on ‘development of cooperation in the field of
peaceful use of radioactive minerals and nuclear energy’. Mongolia’s huge uranium reserves are expected to boost and
energise India’s starving civil nuclear fuel cycle.

India has already signed nuclear deals with France, Russia, the US and Kazakhstan after it got an exemption from the
nuclear suppliers’ group (NSG) in September 2008 to undertake nuclear commerce.

Mongolia, which claims to have 6 per cent of the world’s uranium reserves, is not a member of the NSG. However, it had
supported India’s case for a clean waiver at the International Atomic Energy Agency (IAEA) meeting prior to the NSG
meet. Nuclear experts believe that the supply of uranium is more crucial for India than access to enrichment and
reprocessing (ENR) technology.

Mongolia’s decision could be a big surprise for Australia, which has refused to supply uranium to India as it was not a
signatory to the nuclear non-proliferation treaty (NPT). India hopes Australia would also give up its reservation sooner
rather than later and agree to supply uranium to India.

SCANDALS
Bofors buried as govt drops case
The Bofors case that led to Congress’s defeat in the 1989 Lok Sabha polls has been given an official burial. With the
government declaring its intention to drop proceedings against the key accused, Ottavio Quattrocchi, and all other accused
either dead or acquitted, the case has reached a dead end. The decision not to pursue Quattrocchi, an Italian businessman
accused of taking bribes to facilitate the sale of Bofors howitzers to India in 1986, was announced in the Supreme Court.

The decision to give a burial to the Bofors case, in which the FIR was filed during the V.P. Singh regime in 1990 and the
charge-sheet during NDA government’s reign in 1999, was taken by the UPA government on the basis of a fresh opinion
given by attorney-general G.E. Vahanvati.

A closure of the case had looked imminent since UPA-I allowed Quattrocchi to take out his money—allegedly his share of
the Bofors kickbacks—from accounts with a bank in London. It followed that up by not pressing hard for his extradition
from Argentina and by, subsequently, telling Interpol that he was no longer wanted in India.

TERRORISM; LAW & ORDER

New incentives for Maoists to surrender
The Centre, which usually remains tight-lipped about the kind of weapons the Maoists have, has in its new guidelines for
surrender-cum-rehabilitation of Naxalites indicated that the Red ultras’ arsenal no longer consists of only looted police
weapons. They could, in fact, also have deadlier ones—sniper rifles and surface-to-air missiles—which the ultras might
have procured from outside. The Union government, through the new guidelines for the Naxal-affected States, has offered
different amounts as “additional” incentives to those ultras who may surrender with such weapons. Sniper rifles, rockets,
missiles and light machine guns which can even target low-flying choppers and other long-distance targets attract higher
incentives to Naxalites if they surrender with such weapons.
The incentive given for surrender of the arms will be deposited in the form of a fixed deposit in the joint names of the
surrenderee and a State government nominee and may be given to the surrenderee at the time of completion of three years
after surrender, “subject to good behaviour by the surrenderee”.

Black Widow ultras surrender arms

Responding to September 15, 2009 deadline set by the Union Home Ministry, cadres of proscribed tribal militant outfit,
Dima Halam Daogah (J) or Black Widow have surrendered their weapons to set the stage for a peace process with the
government of India. Total 374 cadres of Black Widow group have surrendered their weapons including some sophisticated
weapons to set the stage for peace negotiation. They have deposited weapons at the headquarter of Fifth Assam Police
battalion at Sontila in the hill district.

The cadres are coming over ground under the leadership of a deputy commander in chief senior leader of the outfit Daniel
Dimasa, while commander in chief Niranjan Hojai, who was believed to be in foreign soil, is still being expected to join the
peace process. Those who have handed over their weapons are now being kept under heavy security at a Red Cross hospital
at Jatinga in the hill district. They will be shifted to designated camps once the government gives its nod for the peace
process after verifying the weapons surrendered by the outfit.

The chairman of the outfit Jewel Garlosa and another senior leader Partha Warisa had been arrested by Assam Police from
a Bangalore hideout on June 3, 2008, serving a severe blow to the outfit which has been running amuck in North Cachar
Hill district and adjoining areas in Assam since 2004, perpetrating rampant killings and extortions.

Once their chairman fell into the hands of the police, the outfit declared unilateral truce and appealed for peace negotiation
with the government of India. However, the Centre set the pre-condition that all cadres would have to surrender arms for a
peace process to happen.

Rampaging Black Widow militants jeopardised works on East West Corridor project of National Highway Authority of
India (NHAI), as well as a gauge conversion project of Indian Railways, causing irreversible delay in implementation of
these projects besides causing huge cost escalation.

The Autonomous State Demand Committee (ASDC), the main tribal regional party in hill areas has hailed the process of
surrender of weapons by Black Widow cadres.

ISI knew of 26/11 plan, say LeT men

Ten months after the attacks on Mumbai, Lashkar-e-Taiba remains largely intact, may have 1.5 lakh members and is
determined to strike India again, according to current and former members of the group, and intelligence officials. Despite
pledges from Pakistan to dismantle militant groups operating on its soil, and the arrest of a handful of operatives, Lashkar
has persisted, even flourished, since the Mumbai carnage in November 2008.

Indian and Pakistani dossiers on the Mumbai investigations offer a detailed picture of the operations of a Lashkar network
that spans Pakistan. It includes four houses and two training camps here in Karachi. Among the organizers, the Pakistani
document says, was Hammad Amin Sadiq, a homeopathic pharmacist, who arranged bank accounts and secured supplies.

Indeed, Lashkar’s broader network endures, and can be mobilized quickly for elaborate attacks with relatively few
resources, according to a dozen current and former Lashkar militants and intelligence officials from the US, Europe, India
and Pakistan. In interviews with New York Times, they presented a troubling portrait of Lashkar’s capabilities, its
popularity in Pakistan and the support it received from former officials of Pakistan’s military and intelligence
establishment.

One highly placed Lashkar militant said the Mumbai attackers were part of groups trained by former Pakistani military and
intelligence officials. Others had direct knowledge that retired army and ISI officials trained LeT recruits as late as 2008.

Naga rebels reject peace package

The government’s efforts for formation of a Naga Common Platform, to find a political solution to the vexed insurgency
problem, have run into trouble with all the three rebel groups—NSCN-IM, NSCN-K(GPRN) and NNC(FGN)—voicing
their strong opposition to it. In a joint statement issued to the local media, the groups have declared that they were strongly
opposed to any form of conditional package offered to the Nagas by the Centre. The Naga Common Platform was not
warranted at this juncture, they added.

Conveners of the joint working group for Naga reconciliation, V.S. Atem of the NSCN (I-M), Zhopra Vero of the NNC
(FGN) and Wangtin Naga of NSCN-K (GPRN), in a joint declaration, stated their opposition to the issues was in line with
the “Declaration of Commitment” signed by them during the recent reconciliation meet held at Chiangmai in Thailand. The
three leaders during the meet affirmed to “work together in the spirit of love, non-violence, peace and respect to resolve
outstanding issues.”

The Central government was contemplating to offer a conditional peace package to the State if the Naga rebels factions
gave up their struggle. The package, which was still being worked, was to include financial largesse and greater devolution
of powers to the State. However, the Centre had made it clear that any solution to the protracted Naga political issue would
be within the Constitution of India. The NSCN (I-M) had earlier said such packages were “unacceptable” to it.

The reconciliation process is currently being taken care of by the Forum for Naga Reconciliation (FNR). The FNR has been
holding meetings both within and outside the State with the different Naga political groups and NGOs. However, the FNR
has limited its role only to the reconciliation process and has shown no apparent interest in formation of a common platform
to facilitate political dialogue with all the rebel groups.
CURRENT INTERNATIONAL AFFAIRS

ARMS RACE
US scraps missile-defence shield plan
President Barack Obama, in a major policy shift, has scrapped a controversial missile-defence shield favoured by his
predecessor, removing a thorn in U.S.-Russia relations but earning criticism from some who accuse him of abandoning US
allies in Europe. Obama announced that he would be abandoning plans to base US interceptor missiles in Poland and radar
in the Czech Republic to protect Europe from Iranian missiles. Instead, Obama has proposed deploying a system aimed at
intercepting short- and medium-range missiles. The President justified his decision by citing new intelligence that shows
Iran's long-range missile programme to be far less developed than previously thought. Russia, which had vehemently
opposed former President George W. Bush's plan to place US military hardware on its border, said Obama's decision would
go a long way in resetting the relationship between the two countries.

GERMANY
Tough task at hand for Merkel after sweeping win
Angela Merkel set to work on September 28, 2009 on a new centre-right coalition after clinching a second term, but warned
Germans of a hard road ahead to revive the sickly economy and rescue vanishing jobs. The conservative Chancellor secured
another four-year mandate with enough votes to dump an awkward “grand coalition” with the Social Democrats (SPD) for
an alliance with the pro-business Free Democrats (FDP). Voters rewarded the 55-year-old leader, dubbed most powerful
woman on Earth by Forbes magazine for four years running, for shepherding Europe’s biggest economy through its worst
post-war downturn. Merkel’s bloc and the FDP have a comfortable 332 seats in the 622-member Parliament.

WORLD ECONOMY
Global recession ending, says OECD
The global recession is coming to an end faster than thought just a few months ago and may already be over, according to
forecasts published by the Organisation for Economic Co-operation and Development. The recovery may even prove a little
stronger than previously predicted, OECD chief economist Jorgen Elmeskov said.

The OECD forecasts show a third-quarter return to expansion of economic output, as measured by gross domestic product,
in the United States and the 16-country Euro zone, led by its two largest economies, Germany and France. The forecasts
showed an annualised expansion of 1.6% in the United States in the third quarter, 0.3% in the Euro zone and 1.1% in Japan.

The pickup that started with a “quite dramatic turnaround” in China and other Asian emerging market economies in the
second quarter remained heavily dependent on government stimulus and ultra-low interest rates across the world, Elmeskov
said.

The OECD’s 30-member countries do not include rising powers such as China, but do include the long-industrialised ones
where the trouble began in 2007 as the credit and housing boom in the United States turned to bust, triggering a crisis in
banking and financial markets that infected the real economy.

The OECD is still predicting GDP contractions for 2009 as a whole across the G-7 group, primarily because of a
particularly bad first half, despite the improvement now in the pipeline. But it sees annualised GDP rises of 1.2 and 1.4% in
the third and fourth quarters for the G-7 as a whole, also signalling an exit from recession at that level.

World requires a new currency: UN report

The dollars role in international trade should be reduced by establishing a new currency to protect emerging markets from
the confidence game of financial speculation, the United Nations said. UN countries should agree on the creation of a
global reserve bank to issue the currency and to monitor the national exchange rates of its members, UN Conference on
Trade and Development said in a report.
China, India, Brazil and Russia, in 2009, called for a replacement to the dollar as the main reserve currency after the
financial crisis sparked by the collapse of the US mortgage market led to the worst global recession since World War II.
China, the world's largest holder of dollar reserves, said a supranational currency such as IMF's special drawing rights, or
SDRs, may add stability.
There's a much better chance of achieving a stable pattern of exchange rates in multilaterally-agreed framework for
exchange-rate management, Heiner Flassbeck, co-author of the report said. An initiative equivalent to Bretton Woods or the
European Monetary System is needed.

While it would be desirable to strengthen SDRs, a unit of account based on a basket of currencies, it wouldn't be enough to
aid emerging markets most in need of liquidity, said Flassbeck, a former German deputy FM who worked in 1997-1998
with then US Deputy Treasury Secretary Lawrence Summers to contain Asian crisis.

Switzerland out of ‘grey’ list of tax havens

The Organisation for Economic Cooperation and Development (OECD) has taken Switzerland off from the list of non-
cooperative tax havens, following the country signing 12 taxation agreements with different nations, and most of them are
significant economic partners like the US and the UK. In April 2009, OECD, a grouping of rich nations, had named many
countries, including Switzerland, in a grey list of those which are not fully-compliant with global tax standards. As per
OECD norms, a country would be removed from the grey list after it has signed at least a dozen double taxation
agreements.
Known for its banking secrecy practices, Switzerland has come under international pressure in the wake of the global
crackdown on tax havens. Switzerland has signed treaties with Qatar, Denmark, Luxembourg, France, Norway, Austria, the
UK, Mexico, Finland, the Faroe Islands, USA and Spain.

ENVIRONMENT
EU summit targets India, China on G-20 climate financing
The European Union (EU) has challenged rising powers India and China to brake their soaring greenhouse gas emissions in
return for Western financial support. “We need to make a credible financial commitment to the developing world. The
equation is straightforward: no money, no deal, but if there are no actions, no money,” European Commission President
Jose Manuel Barroso said.

According to estimates from the Commission, the EU’s executive, it will cost around 100 billion euros ($147 billion) per
year by 2020 to fight climate change in developing countries. But in a clear challenge to rising powers such as Brazil,
China, India, Mexico and South Africa, EU leaders stated that “this estimate pre-supposes appropriate mitigating actions by
developing countries, especially those that are economically more advanced”.

The high-level EU and G-20 meetings came in the countdown to a critical United Nations summit in Copenhagen, which is
intended to seal a new global deal on fighting climate change. EU leaders were at pains to point out the urgency of finding
a deal in December. “The climate is changing much faster than expected. ... This underlines the urgent need to reach a
global, ambitious and comprehensive agreement in Copenhagen,” the joint statement said.

UN backs India’s stand on emissions

For the first time, a UN agency has endorsed India and developing countries on the climate change front. In its World
Economic and Social Survey Report 2009, the UN said rich countries had consumed more than fair share of their carbon
space and needed to take deep emission cuts if the new climate agreement was to be equitable. The survey said investments
in energy infrastructure would have to be doubled from the existing $500 billion per year to $1 trillion and there was a need
to spend approximately $20 trillion by 2030 to move the world to a low carbon growth path.

The report has warned that industrialized countries had already emitted 209 giga-tonnes of carbon. If the rise in global
temperatures was to be kept below 2 degree centigrade, industrialised countries would have to reduce their emissions by
more than 100% below 1990 levels by 2050. At present, industrialized countries have not agreed to reduce their emissions
by even 40% below 1990 levels by 2030 and 80% by 2050.
The UN survey pointed out that in a fair deal, industrialized countries should only occupy 21% of the global carbon budget.
But it recorded that even under the most ambitious proposal from the rich nations, they would end up consuming 48% of
the budget, at the cost of the poorer nations.

From the present emission stock of 209 giga-tonnes of carbon from the rich nations, they would need to alter the lifestyles
of their citizens to come down to 137 giga-tonnes by 2050 and leave the rest of the space for poorer nations to develop
economically.

The authors of the report have recommended a global clean energy fund and a global feed in tariff regime, besides a better
carbon trading mechanism and forest-related financing mechanism to ensure that needed funds are transferred from the rich
to the developing countries as part of the new deal.

NUCLEAR PROLIFERATION
A.Q. Khan nails Pak’s N-lies
An angry, humiliated, and wounded A.Q. Khan has finally made public what has long been suspected: his nuclear
proliferation activities, that included exchanging and passing blueprints and equipment to China, Iran, North Korea, and
Libya, were done at the behest of the Pakistani government and military, and he was forced to take the rap for it. “The
bastards first used us and are now playing dirty games with us,” Khan writes about the Pakistani leadership in a December
2003 letter to his wife Henny that has been made public by an interlocutor. “Darling, if the government plays any mischief
with me, take a tough stand... They might try to get rid of me to cover up all the things they got done by me.” Khan had also
sent copies of the letter to his daughter Dina in London, and to his niece Kausar Khan in Amsterdam through his brother, a
Pakistan Airlines executive. Pakistani intelligence agencies got wind of it and threatened his family’s well-being, forcing
him to recant and publicly take the blame for the proliferation activities.

Pak ups number and capability of nukes

Pakistan’s rapidly ramped up nuclear arsenal is now 70-90 strong with increasingly sophisticated bomb designs and smart
delivery systems aimed primarily at India, two US researchers have said, even as Islamabad is running from pillar to post
seeking international aid.

In a paper written for the Bulletin for Atomic Scientists, Robert Norris of the Natural Resources Defence Council and Hans
Kristensen of the Federation of American Scientists say Pakistan is ‘‘busily enhancing its capabilities across the board,’’
with new nuclear-capable ballistic missiles being readied for deployment, and two nuclear capable cruise missiles under
development. Two new plutonium production reactors and a second chemical separation facility are also under
construction, they said.

Al-Qaida seeking nuclear secrets from Pakistan

Al-Qaida is trying desperately to get its hands on nuclear secrets from Pakistan, according to US Special Representative for
Pakistan and Afghanistan, Richard Holbrooke. He told a congressional reception, “Al-Qaida is still there in the region, ever
dangerous and publicly asking people to attack the US and publicly asking nuclear engineers to give them nuclear secrets
from Pakistan.” This alarming accusation is being taken seriously in light of Pakistan’s history of leaking nuclear secrets
and comes on the heels of similar claims made in a report to US lawmakers.

According to the Congressional Research Service (CRS) report—“Pakistan’s Nuclear Weapons: Proliferation and Security
Issues”—Al-Qaida has also sought assistance from the Khan network. Former Director of Central Intelligence George
Tenet said the United States “received fragmentary information from an intelligence service” that in 1998 Osama bin Laden
had “sent emissaries to establish contact” with the network. Other Pakistani sources could also provide nuclear material to
terrorist organisations.

According to a 2005 report by the commission on the Intelligence Capabilities of the United States regarding weapons of
mass destruction, Al-Qaida “had established contact with Pakistani scientists who discussed development of nuclear
devices that would require hard-to-obtain materials like uranium to create a nuclear explosion.” Tenet explains that these
scientists were affiliated with a different organisation than the Khan network. Congressional Research Service, a bipartisan
independent research wing of the US Congress, prepares reports for lawmakers.

UN united on nuke-free world

In the years and decades to come, he may well be celebrated as Barack “No Bomb” Obama. In a historic moment in time,
the UN Security Council unanimously approved a US-drafted, Obama-authored resolution in New York on September 24,
2009, committing to work towards a world without nuclear weapons.

The new measure, formally titled UNSC Resolution 1887, expresses the Council’s grave concern about the threat of nuclear
proliferation and the need for international action to prevent it. It reaffirms that the proliferation of weapons of mass
destruction and their means of delivery are threats to international peace and security and agrees on a broad range of actions
to address nuclear proliferation and disarmament and the threat of nuclear terrorism.

Broadly, the resolution supports:

• A revitalized commitment to work toward a world without nuclear weapons, and calls for further progress on
nuclear arms reductions, urging all States to work towards the establishment of effective measures of nuclear
arms reduction and disarmament.
• A strengthened Nuclear Non-proliferation Treaty (NPT) and a Review Conference in 2010 that achieves
realistic and achievable goals in all three pillars: nuclear disarmament, non-proliferation and peaceful uses of
nuclear energy.
• “Universality” of the NPT, calling on all Sstates to adhere to its terms—an oblique reference to hold-outs such
as India and Pakistan—and makes clear the Council’s intent to immediately address any notice of intent to
withdraw from the Treaty.

The resolution also calls for better security for nuclear weapons materials to prevent terrorists from acquiring them,
including through the convening of a Nuclear Security Summit in 2010, locking down vulnerable nuclear weapons
materials in four years, minimizing the civil use of highly enriched uranium to the extent feasible, and encouraging the
sharing of best practices as a practical way to strengthen nuclear security.

The Obama resolution was backed by Russia and China among other countries in what is only the fifth meeting of the
Security Council involving heads of government of its member States, and the first time the US President has chaired such
as meeting.

But, aside from presenting a time-table of agenda-packed conferences, the US President did not present any specific
numbers, metrics, or dates on the road to eliminating nuclear weapons. He said the US will move forward with the
ratification of the Comprehensive Test Ban Treaty, and open the door to deeper cuts in its own arsenal.

The pressure on India to sign the Nuclear Non Proliferation Treaty (NPT) is all set to increase sharply with US President
Barack Obama rsday leading the UN Security Council to insist that all countries must sign the treaty that New Delhi has
called discriminatory. India made its resolve not to fall in line plain. The position was conveyed by H.S. Puri, India’s
permanent representative to the UN, to his US counterpart as well as the Security Council. The US is the current UNSC
head.

Stressing that India cannot accept obligations arising out of a treaty which it hasn’t signed, the letter said nuclear weapons
were vital for the country’s security. ‘‘This position is consistent with the fundamental principles of international law and
the Law of Treaties. India cannot accept calls for universalisation of the NPT. As India’s Prime Minister stated in
Parliament on July 29, 2009, there is no question of India joining the NPT as a non-nuclear weapon State. Nuclear weapons
are an integral part of India’s national security and will remain so, pending non-discriminatory and global nuclear
disarmament,’’ stated the letter.

INTERNATIONAL RELATIONS
US aid to Pak comes with ‘accountability’ rider
A new US Legislation triples US aid to Pakistan authorises military assistance to help the country in its fight against Al-
Qaida and other terrorists, but it also includes new and painstakingly negotiated accountability measures to ensure that this
aid is not misused. India had expressed concern that Pakistan would divert US military aid toward bolstering its defences
against a perceived threat from India.

The so-called Friends of Democratic Pakistan got something to applaud when the US Senate passed the compromise
legislation in a voice vote. A statement from the sponsor of an identical Bill in the House of Representatives said the
legislation required that military assistance be focused “principally on helping Pakistan with its critical counter-insurgency
and counter-terrorism efforts”. The bill addresses India's concerns, which Congressional sources and South Asia analysts in
Washington say are valid.

Congressional aides laboured hard to reach a compromise between the earlier Senate and House versions of the Bill. The
sticking points at the time had been language governing oversight of funds to Pakistan's military. The House Bill had linked
the release of these funds to the President’s certification that the Pakistani government “demonstrated a sustained
commitment to and made progress towards combating terrorist groups.”

The new version states that the President has to certify that Pakistan is “making significant efforts towards combating
terrorist groups ... including taking into account the extent to which the government of Pakistan has made progress on
matters” related to counter-terrorism. The new version also doesn’t specify a dollar amount for military aid, only saying
“such sums as are necessary.”

Senator John Kerry, who along with Senator Richard Lugar co-sponsored the Bill in the Senate, said: “The clear, tough-
minded accountability standards and metrics contained in the original Bill are carried through in this version.”

SUMMITS
G-20 Summit
The G-20 Summit was held at Pittsburgh, USA in September-end 2009. The G-20 leaders’ statement from Pittsburgh has a
tough message for the finance community. They have to raise far more capital, say bye-bye to bonuses that soar even if
medium term profits of the institutions they worked for do not, and face tough regulation, starting with full compliance with
the enhanced Basel II Capital Framework by 2011, including a limit on borrowing. The leaders’ statement is unequivocal
and tough: “Where reckless behaviour and a lack of responsibility led to crisis, we will not allow a return to banking as
normal.”

With this bare-knuckled preface, the communiqué goes on to identify changes needed in regulation, coordination among
regulators across nations, increasing capital adequacy, reforming compensation to remove incentives for risky short-term
behaviour, bringing compensation under the purview of regulators, fixing a ceiling on remunerations as a proportion of net
revenues, raising the capital requirement of banks that fail to implement sound compensation policies and practices
improving over the counter (OTC) derivatives markets, tightening accounting norms and harmonising them globally. The
G-20 also wants commodity exchanges to become more transparent, collect data on large trader positions on oil futures and
derivatives markets and to comply with the recommendations of the International Organisation of Securities Commissions
(IOSCO). There are timelines for achieving each one of these changes.

On reform of compensation the Summit statement said: “Excessive compensation in the financial sector has both reflected
and encouraged excessive risk taking. Reforming compensation policies and practices is an essential part of our effort to
increase financial stability. We fully endorse the implementation standards of the FSB aimed at aligning compensation with
long-term value creation, not excessive risk-taking, including by (i) avoiding multi-year guaranteed bonuses; (ii) requiring a
significant portion of variable compensation to be deferred, tied to performance and subject to appropriate claw back and to
be vested in the form of stock or stock-like instruments, as long as these create incentives aligned with long-term value
creation and the time horizon of risk; (iii) ensuring that compensation for senior executives and other employees having a
material impact on the firm’s risk exposure align with performance and risk; (iv) making firms’ compensation policies and
structures transparent through disclosure requirements; (v) limiting variable compensation as a percentage of total net
revenues when it is inconsistent with the maintenance of a sound capital base; and (vi) ensuring that compensation
committees overseeing compensation policies are able to act independently.”

The G-20 has large ambitions on energy security and climate change and its Pittsburgh communiqué binds members to
phase out subsidies on fossil fuels over the medium term. It also recognises that the poor might need subsidies to consume
at least a minimal amount of energy and calls for cash transfers to target beneficiaries, while abandoning the policy of
subsidising fuels in general. This would bring pressure on India to abandon its present policy of subsidising kerosene and
cooking gas and even diesel and petrol when their prices rise above what the government thinks is above the level of
political tolerance.

Studies have shown that 40% of subsidised kerosene gets diverted for adulteration of diesel. This not only foils the goal of
offering subsidy on the fuel but also reduces engine life across our transport fleets and adds to pollution and diesel
consumption through reduced fuel efficiency.

The Group of 20 (G-20), which includes developing nations like India, Brazil, and South Africa, will replace the Group of 7
(G-7), the mostly-western club of rich industrial nations, as a global forum for economic policy, it was announced during
the Summit. “Dramatic changes in the world economy have not always been reflected in the global architecture for
economic cooperation. This all started to change today,” the White House said of the makeover, “The G-20 leaders reached
a historic agreement to put the G-20 at the centre of their efforts to work together to build a durable recovery while
avoiding the financial fragilities that led to the crisis.”

For India, this means a regular, perhaps annual or twice-yearly pow-wows beyond the bi-laterals and clubby tri-laterals
(IBSA—India, Brazil, South Africa) and quadri-laterals (BRIC—Brazil, Russia, India, China) that it was fostering.

Collectively, the G-20 economies account for 85% of global gross national product, 80% of world trade, and two-thirds of
world population.

The new G20 will not have a permanent secretariat, and its chairmanship will be rotated annually, with South Korea
running the body next year and France in 2011 A final agreement on a revamped representation structure will be completed
in negotiations at the International Monetary Fund (IMF), set to conclude by January 2011. Under the proposal, the G-20
leaders will annually outline objectives for growth and then ask the IMF to carry out a form of assessment or peer review to
ensure member states are following the plan’s objectives

Prime Minister Manmohan Singh returned from the G-20 Summit at Pittsburgh with some major gains at hand that are
making the rich nations now look at the developing world in a new light. It was evident from the final communiqué issued
by the G-20 leaders at the end of the summit that it reflected a lot of what Manmohan Singh had been pointing out prior to
the summit.

In some of the other aspects of global financial structure, too, India’s stand was reflected in equal measure—notably greater
voting rights for developing countries in the International Monetary Fund (IMF). In fact, the developing countries, mainly
India, China and Brazil, also managed to secure what was rather unthinkable even a decade ago—a peer review of the
economic policy framework of rich countries.

WORLD TRADE
Doha round impasse resolved
The informal meeting of the trade and commerce ministers of key World Trade Organisation (WTO) member countries in
Bew Delhi, in the month of September 2009, agreed to resume negotiations in Geneva. A visibly pleased Commerce and
Industry Minister Anand Sharma at the conclusion of the two-day meet said, “The Delhi meeting has managed to break the
impasse of the Doha round.”

The global trade talks had been stalled since July 2008. This was an important step for Anand Sharma, who as a new
minister has been able to restart the stalled trade-talks process. India has always been seen as a spoiler in the talks.
However, this meeting re-established India’s leadership role in the multilateral talks.
In July 2008, the talks had collapsed after India and other developing countries opposed the agriculture subsidies offered by
developed nations to their farmers. The developing countries argued that the new subsidy would distort trade by making the
produce of their countries costly. India had insisted that developing countries should have the right to impose steep tariffs to
protect their farmers if there was an increase in import of farm products under a new trading deal.

At the end of the two-day talks, it is very clear that there has been no change in the position of these countries on the
matter. The important issue that still remains is about the position of the developed world—the US and EU—towards the
developing world like Africa, India, Brazil etc.

Lauding India’s initiative to revive the stalled WTO negotiations, US Trade Representative Ron Kirk said: “The US
Administration is committed to the completion of the Doha Talks by 2010.” However, Brazil said the developing countries
had already made enough concessions and new demands should not be made on them.

The talks could produce a deal that boosts the global economy by $300-700 billion a year, according to one recent study,
although other estimates of the benefits have been lower.

BILLIARDS
World Professional Crown
Pankaj Advani, the 24-year-old Bangalorean, scripted a brilliant 2030-1253 win over Mike Russell to win his maiden
World Professional Billiards title at the Northern Snooker Centre in Leeds, UK. In a thrilling finale, he reduced the greatest
billiards exponent of the modern era to a mere spectator in a five-hour clash.

Pankaj Advani is only the second Indian after Geet Sethi to win the World Professional Billiards title in its 139-year
history. He has also won the IBSF World Snooker Championship in China and has the rare distinction of being both the
World IBSF and professional champion.

He also won gold at 2006 Doha Asian Games (English Billiards singles).

BOXING
Vijender becomes first Indian boxer to be ranked No. 1
Adding to his already overflowing list of firsts in Indian boxing, Haryana lad Vijender Singh has again created history by
attaining the numero uno position in the world in the 75 kg category. Now, he has become the first Indian boxer to win a
medal at the Olympics, the first to win a medal at the World Championships and also the first to take the top spot.

CRICKET
India briefly become number one
India became world number one in ODIs on September 11, 2009 after a six-wicket win over New Zealand. However, they
could not hold on to the number one spot for long as they lost the next match against Sri Lanka. M.S. Dhoni’s men are only
the third team to hold the top slot after Australia and South Africa since the ranking system began. Indian team needed to
win the two matches against Sri Lanka in the tri-series to stay on top. But they could only win the final of the series and lost
the league match.

England-Australia One Day series

A devastating spell of fast bowling from Brett Lee at Lord’s helped Australia to a seven wicket win and an unassailable 4-0
lead in the seven-match One-day series against England. It was the ninth time Lee had taken five wickets in a One-dayer.
Australia captain Ricky Ponting’s superb century paved the way for the world champions to beat England by four wickets
in the fifth one-day international (ODI).
Tim Paine scored his maiden international century as Australia inflicted fresh one-day misery upon England with a
crushing 111-run win at Trent Bridge. Victory in this fixture left world champions Australia 6-0 up in the 7-match series.
Sri Lanka-New Zealand-India Tri-series
India defeated Sri Lanka by 46 runs to win the tri-series. India’s win was backed by a century by Sachin Tendulkar who
scored 138 runs off 133 balls. This was Sachin’s 44th century. The win was India’s first in a tournament final against Sri
Lanka in eight attempts. The win was also India’s first since January 2008 in a series involving more than two teams.

BCCI Corporate Trophy

Air India Red defeated Air India Blue by 93 runs to clinch the trophy.

All India J.P. Atray Tournament

Reliance-1 overhauled a massive 303 run target set by defending champions Indian Oil Corporation team to win the Pearls
Trophy. The tournament was held at Mohali, Punjab.

Castrol Cricket Awards, 2008

Indian opener Gautam Gamhir pipped Virender Sehwag to become the Cricketer of the year 2008. Gambhir, who scored
over 1000 runs in Tests and ODI's in 2008, also won the best bastman of the year award while off-spinner Harbhajan Singh
claimed the best bowler of the year honours, worth a trophy and Rs two lakh each.

Dashing opener Sehwag and Indian skipper Mahendra Singh Dhoni were declared the Test and One-Day cricketers.

All rounder Ravindra Jadeja was named the best young cricketer of the year.
Master blaster Sachin Tendulkar and another stalwart Rahul Dravid were given special performance awards for becoming
the first batsman to cross 12,000 runs in Tests and becoming the leading catcher in the traditional format of the game,
respectively.

Gundappa Rangnath Viswanath, former Indian captain and the first Indian to score a Test hundred against all Test-playing
nations of his time was conferred the Castrol Lifetime Achievement Award. Vishwanath joins the legendary Capt. Vijay
Hazare, Polly Umrigar, B.S. Chandrasekhar, Gavaskar, Kapil Dev and Prasanna who were the earlier recipients of the
award. G.R. Viswanath represented India in 91 Tests from 1969 to 1983, and scored 6,080 runs, inclusive of fourteen
centuries.

FOOTBALL
Durand Cup
Churchill Brothers defeated Mohun Bagan 1-0 in extra time to lift the cup.

GOLF
DLF Masters Title
Gaganjit Bhullar won the title for his fifth consecutive victory on the domestic tour.

PGTI Players Championship

Amandeep Johl clinched the rain-hit championship at Chandigarh defeating Ashok Kumar in a play-off.

BMW Championship
Tiger Woods cruised to victory in the Championship, his sixth triumph of 2009, putting him back atop the US PGA Tour’s
FedEx Cup rankings.

TENNIS
India returns to elite Davis Cup group after 11 years
India No. 1 Somdev Devvarman came back from two sets down to beat South Africa’s Rik De Voest in a match that lasted
nearly 5 hours. The thrilling win gave India an unbeatable 3-1 lead over South Africa and ensured a return to the elite Davis
Cup World Group for the first time in 11 years.
US Open, 2009
Kim Clisjsters of Belgium won the women’s singles title for the second time, defeating Caroline Wozniacki of Denmark, to
complete one of the most stunning comeback in modern sports history. In doing so, she became the first mother to win a
Grand Slam title since Australian Evonne Goolagong in 1980 and the first wildcard, man or woman, to win a US Open title
in the history of the tournament.

Juan Martin del Porto ended Roger Federer’s run of dominance at the US Open to win the men’s singles title. This was his
first Grand Slam title.

Leander Paes and his Czech partner Lukas Dlouhy won the men’s doubles title when they beat the third seeds Mahesh
Bhupathi and his partner from the Bahamas Mark Knowles 3-6, 6-3, 6-2.

Serena Williams and Venus Williams beat Cara Black and Liezel Huber to win the women doubles title.

Carly Gullickson and Travis Parrott defeated Leander Paes and Cara Black to win the mixed-doubles title.

WRESTLING
Ramesh wins World Championship Bronze ending 42-year-old wait
It takes guts to go for a high-risk three-point technical move in the final seconds of a medal bout at World Championship
Wrestling. But in Ramesh Kumar’s case, the all-out attack strategy paid off big time. The wrestler from Haryana ended
India’s 42-year wait for a medal in the men’s segment at the World Championships by winning bronze in the 74kg freestyle
category in Herning, Denmark.

Vishambar Singh was the last Indian male wrestler to win a medal at the Worlds, with a freestyle silver in 1967. In 2006,
Alka Tomar had won bronze in the women’s event. India also boasts of two Olympics bronze medal-winning wrestlers—
Kasaba Jadhav in 1952 and Sushil Kumar in Beijing 2008.

CURRENT NATIONAL AFFAIRS------OCTOBER 2009

BANKING & FINANCE

RBI monetary policy
As part of its second quarterly review of the monetary policy for 2009-10, the RBI, on October
27, 2009, hiked the Statutory Liquidity Ratio (SLR) for scheduled commercial banks to 25 per
cent from 24 per cent of their net demand and time liabilities (NDTL), with effect from
November 7, 2009, even as other key rates were left untouched.

RBI Governor D. Subbarao noted that the Indian economy was awash with liquidity and there
was possibility of considerable strain in the future from inflationary pressures. However, to
keep growth on track, the apex bank left the Bank Rate untouched at 6 per cent while the repo
rate under the liquidity adjustment facility (LAF) stay at 4.75 per cent. The reverse repo rate
under the LAF, too, remains the same at 3.25 per cent. The cash reserve ratio (CRR) of
scheduled banks also has been retained at 5 per cent of their net demand and time liabilities
(NDTL).
Mr Subbarao pointed out that the global economy has shown signs of major improvement since
the last review in July 2009. However, concerns remained of the recovery being fragile. "Even
as output is reviving, unemployment is expected to increase to over 10 per cent. Investment is
also expected to remain weak due to ruptured balance sheets, excess capacity and financing
constraints. Bank collapses are continuing. World trade still remains below its level a year ago.
On balance, while global economic prospects have improved, uncertainties remain about the
pace and sustainability of economic recovery," Subbarao said.

The RBI chief also noted that there were concerns of large government market borrowings.
"During 2009-10 so far, the Central Government has already completed over 80 per cent (Rs
3,19,911 crore) of its net market borrowing and State governments have mobilised Rs 58,683
crore (net) through the market borrowing programme," he stated.

Highlights

• Repo rate retained at 4.75 pc

• Reverse repo rate at 3.25 pc
• Cash Reserve Ratio kept at 5 pc
• Bank rates same at 6 pc
• Provisioning requirement for realty up at 1 pc from 0.40 pc
• Retains GDP growth projection for FY'10 at 6 pc
• Industrial production may revive further in coming months
• Ups inflation projection to 6.5 pc by March-end, from 5 pc
• Third quarterly review in January.

PLANNING & ECONOMY

RBI survey
The Reserve Bank of India has acknowledged the resurgence of the feel good factor in the
Indian economy but has said that growth and inflation continue to be a concern.

Maintaining a hawkish stance on inflation, the central bank has highlighted its concern over
slowdown in credit off-take and surplus liquidity in the system, giving no clear indication on its
rate stance. In its report on Macro and Monetary Developments in Q2 of 2009-10, the Reserve
Bank has noted that "The combination of a weak recovery and elevated CPI (consumer price
index) inflation has already magnified the complexity of policy challenges, notwithstanding the
subdued nature of headline WPI inflation so far."

While premature reversal of the monetary policy stance entails the risk of stifling recovery,
persistence of accommodative stance could adversely impact inflation expectations.

However, the results of its survey, based on “assessment for July- September 2009” and
“expectations for October-December 2009”, point to a strong momentum in industrial
recovery. Both the indices remained above 100 for the second consecutive quarter (100 is the
threshold that separates contraction from expansion). According to the RBI analysis, this
suggests that the industrial recovery already seen up to August 2009 in terms of trends in IIP
growth could gain further momentum.

The outlook for employment is also improving and firms are expected to increase their
workforce on the back of expected increase in demand.
Among the positive pointers to the economic recovery include improved financial conditions as
reflected in return of capital flows, significant recovery in the stock markets, and better
transmission from low policy rates to declining lending rates. The RBI has also said that there
should not be any concerns about private credit getting crowded out since over 80.4% of the
government borrowing programme has been completed so far as there is adequate liquidity in
the system.

But RBI is concerned about the deceleration in private consumption and investment demand
that it says needs to be reversed from the low levels seen in the first quarter of 2009-10 for
ensuring a sustainable recovery.

Indian economy seen cruising at 6.5% in 2010

A key economic think-tank has made the most optimistic official projection yet for growth in
the fiscal to March 2010, flagged rising food prices as a major concern, and suggested that
tighter monetary and fiscal policies are unlikely in the coming months.

The Prime Minister’s Economic Advisory Council, headed by former RBI governor C. Rangarajan,
said it sees the gross domestic product (GDP) expanding by 6.5% in 2009-10.

In its July 2009 forecast, the RBI had forecast that India’s economy in 2009-10 would grow by
6%, with an upward bias, and the Planning Commission had said in early September that it sees
GDP growth at 6.3%. India’s economy expanded by 6.7% in 2008-09 after growing at over 9% for
three years.

The improving trend is unlikely to prompt any immediate withdrawal of stimulus measures or a
tightening of monetary policy, even though the panel made clear its concern about inflation
and fiscal deterioration. It expects the consolidated fiscal deficit of the Centre and States at
10.09% for 2009-10 and sees inflation, imported and local food inflation, as a significant risk for
the Indian economy.

EDUCATION
IIMs can now set up campuses abroad
Directors of the prestigious Indian Institutes of Management (IIMs) and members of their boards
will eventually be appointed through an independent collegium of industrialists and academics.
Also, IIMs can set up campuses abroad, provided they come up with “workable proposals and
preferably function together instead of individually”.

"We want to globalise the IIM brand,” said HRD Minister Kapil Sibal. In another major move, the
government agreed that a collegium, as mooted for the appointment of vice-chancellors of
central universities, would also apply to IIMs, where majority appointments so far are cleared
by the HRD ministry, which advertises the positions before short-listing and selecting
candidates.

But that is set to change to advance the cause of transparency in appointments to top
institutes. IIM boards are also proposed to be restricted in size, with HRD ministry describing
them as “unwieldy and huge”. The membership will be limited to 13 (currently over 20 or so.

The boards are proposed to be reconstituted post January 2010, the deadline which the
government has given to IIM directors to present their views on the constitution of the
collegium, which will be empowered to recommend names of board members and directors to
the government for final selection.
For the institutes to beat competition, autonomy is the key, feel the directors. Sibal agrees,
but with a rider: “We are for IIM autonomy, for letting go, but let’s not forget that the primary
responsibility of all education systems is national.”

ELECTIONS
Congress wins in Haryana, Maharashtra and Arunachal
With a stunning result in the latest political super-bowl, the Congress has fortified its "top dog"
status, while pushing the main opposition party, BJP, into its gravest political crisis in over two
decades.

Congress survived a scare in Haryana and retained power in the State with the help of
independents as well as five Haryana Janhit Congress MLAs, who decided to join the Congress.
Congress sailed back in style in Maharashtra and Arunachal Pradesh. All three CMs—Ashok
Chavan in Maharashtra, B.S. Hooda in Haryana and Dorjee Khandu in Arunachal—have been
renominated by the party leadership.

If the Lok Sabha polls settled the Number One slot for Congress party, the altest verdict
confirmed that the gap between Sonia Gandhi’s outfit and BJP is growing. In fact, some
political pundits feel Congress could well be on the way to regaining its pre-1996 status when,
as the key player in most States, it could be fought only by a united opposition.

Some riders are, however, in order. The win in Maharashtra has been facilitated by Raj
Thackeray playing spoiler again—on a bigger scale. In Haryana, the party failed to get a
majority despite a three-way split of anti-Congress votes. The resurrection of Chautala shows
the resilience of old-fashioned politics and should be sobering for those who feel traditional
political tools—caste/community—have lost salience.

Haryana: In Haryana, the Congress vote share fell by a huge 7.4%, from 42.5% to 35.1%.
Normally such a big swing away results in the decimation of a party. But Hooda has managed to
keep his head above the water, thanks largely to a fractured opposition.

Chautala, too, lost his vote share, but by just 0.7%, while BJP’s share fell by 1.4%. The new
political outfit, Kuldip Singh Bishnoi’s HJC, accounted for 7.4% votes.

Maharashtra: In the the lead-up to the Maharashtra polls, many had wondered whether Raj
Thackeray would help Congress-NCP in as big a way as he did in the LS polls by eating into the
Sena votebank yet again. Indeed, Congress-NCP cruised back to power as Shiv Sena citadels in
Mumbai and Thane crumbled under Raj’s assault. In a result, the loser’s story is almost as
important as the winner’s. If the ruling combine beat the incumbency blues, the 144-90
scoreline was the clap of doom for the Sena-BJP camp. To add to Sena’s woes, BJP crept ahead
with 46 seats to its 44.

The revenge drama saw Raj Thackeray’s Maharashtra Navnirman Sena demolish Sena’s
prospects by not only splitting the “Marathi” vote but emerging as the second largest party in
Mumbai with six seats and a staggering 23.35% of the city vote.

MNS polled 5.7% of the State’s vote, eating into Sena and possibly NCP bases. While Sena was
the worst hit, losing 3.7% of its support since May 2009, the Raj effect may have dented others,
particularly NCP, which lost 2.4% of its vote.

Congress may have raised its tally of seats in the 288-member Maharashtra Assembly from 69 in
2004 to 82 this time round, but the party’s vote share has never been lower in any Vidhan
Sabha election in the State, except in 1978. Yet with 21% of votes, Congress has a distinct edge
over the other big parties, NCP having won just 16.4%, Shiv Sena 16.3% and BJP 14%. That also
means that the combined vote shares of the big four is down by 5.9% from five years ago. This
almost exactly matches the 5.7% won by MNS in these elections.

Independents have won 15.5% votes. In other words, despite the existence of two long-standing
coalitions in the fray, roughly one in every three Maharashtra voters did not vote for either of
them. That is perhaps the clearest indication that this verdict is not so much a positive one for
UPA as one it has got by default because of the absence of credible alternatives.

Arunachal Pradesh: The electorate in Arunachal Pradesh returned Congress to power with an
overwhelming majority but rejected the man, Gegong Apang, who not only nurtured the party
but also ruled the State for over 22 years.

The Congress romped home with 42 of the 60 Assembly seats even as Apang (60) bit the dust at
the hands of Alo Libang, a political greenhorn from NCP.

Dorji Khandu had come to power in April 2007 after Congress dissidents revolted against Apang.
Like in the last two elections, Khandu has again won from Mukto in Tawang unopposed.

With five seats each, NCP and Trinamool Congress emerged as the main Opposition, followed
by People’s Party of Arunachal (four) and BJP (three). In 2004, the BJP had won nine seats
against Congress’s 34.

EC announces five-phase polls in Jharkhand from Nov 27

Election Commission has announced five-phase Assembly polls in Jharkhand, spread over
November-December 2009. Faced with a serious threat of Maoist violence, five-phase election
for 81 assembly constituencies will take place on November 27, December 2, 8, 12 and 18.
Results will be announced on December 23.

Jharkhand has 1.8 crore voters and 23,944 polling stations. While photo electoral rolls have
been prepared in the case of 74.19% voters, 77.63% voters have electoral photo identity cards.

Admitting that conducting election in Jharkhand could be a problem due to the Maoist menace,
Chief Election Commissioner Navin Chawla said home ministry has agreed to provide sufficient
central paramilitary forces.

Jharkhand, which has seen four Chief Ministers and six governments in the nine years of its
short existence, will be looking for political stability at the end of the Assembly election.

The State was placed under President’s Rule in January 2009 but the then Governor, Syed Sibte
Razi, was shifted out following allegations of misuse and corruption. A hung House following
the last Assembly election—the State’s first—in 2005 had led to a string of unholy alliances in
which Independent MLAs and fringe political parties with one or two members in the Assembly
called the shots. The period had also seen an Independent MLA, Madhu Koda, becoming the
Chief Minister.

Since then, two former ministers of the State have been arrested and sent to jail in
disproportionate assets cases, while the Enforcement Directorate has instituted an adverse
preliminary report against Koda and two other former ministers in the State for alleged
violation of foreign exchange rules and hawala transactions.

As many as seven MLAs in the 81-member House were disqualified in August under the Anti-
Defection Act while three members chose to quit the House, which had been kept under
suspended animation.
The election will put the Bharatiya Janata Party to yet another severe test. BJP had emerged
as the single largest party in the House with 30 seats after the last Assembly election, though
the majority eluded it. It also bagged eight out of the 14 Lok Sabha seats from the State in May
2009. But with most of the party stalwarts in the Lok Sabha and the party riven by
factionalism, it faces an uphill task to put its act together.

Congress is trying to revive its fortune in the State where it was virtually marginalised,
managing to secure just nine seats in the Assembly in 2005. Even in the general election held in
May 2009, the party had managed to win only one of the 14 Lok Sabha seats. A weak
organisation and absence of leaders with acceptability throughout the State are handicaps
which the party hopes to overcome through campaigning by Rahul Gandhi and others.

The election is also crucial for the Jharkhand Mukti Morcha, which campaigned for separate
Statehood but which never managed to get anywhere close to securing the majority in the
State Assembly. The virtually one-man party is still a force to reckon with in Santhal Pargana
region and the party chief, Shibu Soren, is still a big draw among Santhals. But the JMM, which
has declared its intention to contest the election alone, may find the going tough in other parts
of the State without the support of its old ally, the Congress.

ENVIRONMENT
Ganga clean-up
Twenty two years and Rs 960 crore later, the government plans to spend another Rs 15,000
crore over the next 10 years to make the Ganga river pollution free. This decision was taken at
the meeting of the first National Ganga River Basin Authority, chaired by Prime Minister
Manmohan Singh, on October 5, 2009.

It has been decided to take up the cleaning of the Ganga river on a mission mode. Mission
Clean Ganga will ensure that by 2020 no untreated municipal sewage and industrial effluents
flows into Ganga. At present, the sewage treatment capacity is about 1,000 mld, against 3,000
mld sewage being generated in the towns along Ganga. Nearly 75% of the pollution in the
Ganga is on account of municipal waste.

The costs will be borne by both the Centre and the States. There were disagreements over the
sharing, with States asking for 100% central funding. An alternate funding pattern of 70% by the
Centre and 30% by the States has been suggested. A final decision on the sharing ratio will be
worked out by the Planning Commission, in consultation with the States and Central
government.

In the meantime, the World Bank has offered a loan of $1 billion for the mission.

JUDICIARY
Vision Statement to cut delays
The Union government has suggested a drastic dilution of the judiciary's role in the
appointment of Judges in the "Vision Statement" for cutting down delays and banishing cases
pending for more than three years.

"The Executive and the Legislature must take initiative in recommending the best possible
talent for selection to the judiciary," Law Minister V. Moily said in the 32-page document
presented to Chief Justice K.G. Balakrishnan. The "government should also be given the power
to suggest outstanding lawyers and jurists as Judges," the Minister said in the statement, which
was discussed threadbare at a conference aimed at "strengthening the judiciary towards
reducing pendency and delays."
Moily's proposals have come in the wake of the crisis-like situation that has arisen following
allegations of judicial misconduct against a number of Judges—Karnataka High Court Chief
Justice P.D. Dinakaran and Judges Soumitra Sen of Calcutta High Court and Nirmal Yadav of
Punjab and Haryana High Court. The custodial death of Ashutosh Asthana, the prime accused in
the Uttar Pradesh PF scam, which reportedly involves several Judges, has cast a further shadow
on the judiciary.

Styled as "National Consultation," the conference was attended by Supreme Court Judges and
Chief Justices of High Courts, including Justice Dinakaran, and top judicial luminaries from
across the country.

Both the Law Commission, headed by Justice A.R. Lakshmanan, and the Parliamentary Standing
Committee report have recommended reverting to the pre-1993 system which involved
appointment of High Court and Supreme Court Judges through consultation between the Chief
Justice of India and the government-primarily the Prime Minister and the Law Minister.

In all, Moily has suggested five "improvements" in the present system of appointment. The
other three are: There should be lucid and comprehensive guidelines which the Collegium
should follow in the matter of selection of judges. The Collegium should be given a timeline to
clear the backlog in vacancies. The government and the Collegium should work "hand in hand
while appointing Judges."

NUCLEAR ENERGY
India notifies N-separation plan
India has notified its separation plan in the IAEA, which formally separates India’s civilian and
military nuclear establishments. The plan, which was announced in March 2006, has passed
muster at IAEA and India’s safeguards agreement is now officially operational.

This is likely to help in the negotiations for the reprocessing agreement that is currently under
way between India and US. But more than that, this will silence many non-proliferation critics
in the new Obama-led US administration who had been looking at the delay in notifying the
safeguards agreement as an example of Indian dithering.

FOREIGN RELATIONS
India slams OIC over J&K envoy
Pakistan has succeeded in its efforts to compel the Organisation of Islamic Conference (OIC) to
appoint a special envoy for Jammu and Kashmir. At its meeting in New York earlier in first
week of October 2009, the OIC also stated that it supported people of Jammu and Kashmir in
realisation of their legitimate right to self-determination in accordance with relevant UN
resolutions and aspirations of the Kashmiri people.

A fuming India reacted sharply to the OIC action, dubbing it as interference in the internal
affairs of this country. “Jammu and Kashmir is an integral part of India and it is our firm
position that the OIC has no locus standi in matters concerning India’s internal affairs,” the
External Affairs Ministry said in a statement.

Condemning the OIC move, New Delhi said inherent in its statements and actions on the issue
of Jammu and Kashmir was a complete inability to understand India’s position.

The appointment of a Saudi national, Abdullah Bin Adbul Rahman Al Bakr, by the OIC as its
envoy on Kashmir is being seen as a move initiated by Pakistan as part of its attempts to
internationalise the Kashmir issue.
India has time and again told the international community, including major world powers, that
Jammu and Kashmir is a bilateral issue between India and Pakistan and there is no room for
third party intervention.

Under pressure from Pakistan, the OIC has at all its meetings adopted resolutions on Jammu
and Kashmir, prompting New Delhi to condemn 57-member body’s action every time. Privately,
however, many of the Islamic nations have repeatedly assured India that they are not in
agreement with OIC resolutions on Kashmir but had to support them for the sake of unanimity
and to keep Pakistan in good humour.

Well aware that its action would draw a strong response from India, the OIC is now trying to
play down the appointment of the special envoy.
OIC Secretary General Ekmeleddin Ihsanoglu was quoted as saying that the appointment would
help bridge the gap between India and Pakistan and address the issue of minorities in India.

India, Argentina sign N-accord

On October 14, 2009, India signed an agreement for civil nuclear cooperation with Argentina,
making it the seventh nation to ink such an accord with this country after New Delhi secured a
waiver from the nuclear suppliers’ group (NSG) to undertake nuclear commerce.

The agreement for cooperation in the peaceful uses of nuclear energy was among the 10
accords signed by the two countries following wide-ranging talks between Prime Minister
Manmohan Singh and visiting Argentine President Cristina Fernandez de Kichner, during which
they desired to establish strategic partnership between their two nations. The two leaders
discussed a wide range of bilateral, regional and global issues of mutual interest.

A joint statement issued by India and Argentina after the visiting dignitary concluded her talks
with Indian leaders said the two sides shared the view that civil nuclear energy could play an
important role as a safe, sustainable and non-polluting source of energy in meeting rising global
demands for energy.

The other nine accords signed between the two sides include: exchange of letters for business
visa providing for five years multiple entry gratis visa for a single stay of 90 days; programme of
cooperation in science and technology for 2009-11; MOU between ONGC Videsh Limited and
ENARSA; MOU on sports cooperation; MoU on cooperation in the field of trade promotion and
technology transfer in international trade; and agreement on outer space.

The two sides also agreed on the need to give a new impulse to multilateral negotiations in the
area of disarmament, especially weapons of mass destruction.

India-China talks
Without getting into the recent spat over Arunachal Pradesh, Prime Minister Manmohan Singh
and Chinese Premier Wen Jiabao talked peace and harmony on October 24, 2009, in a meeting
on the sidelines of the India-ASEAN summit in Thailand.

The visit of the Dalai Lama to Arunachal also did not figure in the discussions between the two
leaders who instead focused on the positives in the relationship and agreed that "differences"
should not impede cooperation between the two countries.

In an effort to ameliorate the recent strain on the bilateral relationship, Prime Minister
Manmohan Singh even proposed that the two countries observe the 60th anniversary of the
establishment of diplomatic ties in a "fitting manner". He also put stress on the trade and
economic relations, calling it a "vital pillar" in the bilateral relationship.
This exchange at the highest political level came after an escalation in the rhetoric between
the two sides over the border issue. China had objected to Mr Singh’s trip to Arunachal Pradesh
for the Assembly elections. This had elicited a strong reaction from New Delhi which had
reminded Beijing that Arunachal remained an integral part of the country. New Delhi had
further pointed out that in the democratic system leaders visited States where elections are
taking place. This was further followed by India protesting against China’s involvement in
projects in Pakistan Occupied Kashmir, which New Delhi pointed out was also disputed
territory. New Delhi had earlier also objected to Beijing’s practice of issuing visas to people
from Jammu and Kashmir on loose sheets.

Chinese Prime Minister Wen recalled Mr Singh’s remark about both sides having enough space
to develop and cooperate and added that there are sufficient areas in the world for India and
China to enhance such cooperation. The Chinese premier further suggested that the Joint
Economic Group should hold early consultations and that China would work with India to handle
the matter of the growing trade deficit.

India also rejected China’s objections to Dalai Lama’s Arunachal visit in November while
making it clear that the Tibetan spiritual leader was not allowed to indulge in political
activities on the Indian soil. The issue figured when Prime Minister Manmohan Singh and his
Chinese counterpart Wen Jiabao were seated next to each other at a gala dinner hosted by the
Thailand Prime Minister for leaders attending the ASEAN and East Asia summits.

India, China ink pact on climate change

Amidst tension over political issues, India and China have signed an agreement to cooperate on
ways to fight climate change. Moving closer, at least on an issue concerning the entire world,
the two neighbours announced setting up of a Joint Working Group (JWG) to exchange views
concerning international negotiations on global warming. The memorandum of agreement
(MoA) assumes significance in the run-up to the Copenhagen climate summit. Developed and
developing countries are at loggerheads over who should reduce emissions of greenhouse gases
that are causing climate change.

India and China are in the same bloc as the Group of 77 countries in climate negotiations.

The MOA acknowledges that climate change and its adverse effects are a common concern of
mankind and need to be addressed through international co-operation. It emphasises that the
UNFCC and its Kyoto Protocol were the most appropriate framework for addressing climate
change.

The agreement also reaffirms the principle of common but differentiated responsibilities, in
particular that developed countries should take the lead in reducing their greenhouse gases
and providing financial resources, technology transfer and capacity building support to
developing countries.

Egypt offers special industrial zone to India

Egypt has invited India to build a ‘India industrial zone’ in the Suez development area for
setting up joint ventures with Egyptian companies. Egypt’s Prime Minister Ahmed Nazif, in his
meeting with commerce and industry minister Anand Sharma in Cairo, offered to designate an
area for setting up of the zone exclusively for Indian companies.

India could gain significantly from the offer as it would give it easier entry to the European and
African markets, since Egypt has preferential access to both.

The Suez development area, located on the north-west coast of the Gulf of Suez, has lower
bureaucratic barriers to business formation and provides tax incentives. The law gives more
incentives for priority areas, such as infrastructure, auto parts, software, oil field services,
tourism and manufacturing. The terms and conditions of investing in the proposed India zones
and the tax benefits to industry are to be worked out.

Indian companies have, till now, invested about $750 million in 40 projects in Egypt. India has a
significant presence in the IT and automobile sector with companies like Wipro, Satyam,
Mahindra and Tatas having invested in the country.

Olive branch to Pak with rider

In a speech delivered at the inauguration of the Anantnag-Qazigund rail link in Anantnag, Prime
Minister Manmohan Singh focused largely on ties with Pakistan and the earlier success of cross-
LoC initiatives. Targeting domestic audience and also sending out a message to Pakistan, Mr
Singh prefixed his offer of peace with the rider that Islamabad must bring perpetrators of
terror attacks to justice and destroy terror camps. "For a productive dialogue it is essential
that terrorism must be brought under control," he said.

Mr Singh said India would put pressure on Pakistan to curb the activities of the elements
engaged in terrorism against India. "If they are non-State actors, it is the solemn duty of the
government of Pakistan to bring them to book, to destroy their camps and to eliminate their
infrastructure. The perpetrators of the acts of terror must pay the heaviest penalty for their
barbaric crimes against humanity," he said.

With Pakistan now being targeted by terrorism, Mr Singh said there could be no compromise
with the ideology of terror. "It is a misplaced idea that one can reach a compromise with the
ideology of the terrorists or that they can be used for one’s own political purpose. Eventually,
they turn against you and bring only death and destruction. The real face of the terrorists is
clear for the people of Pakistan to see with their own eyes," he said.

He maintained that India was ready to discuss humanitarian issues whose “resolution requires
the cooperation of Pakistan”. "We are ready to discuss these and other issues with Pakistan. I
hope that, as a result, things will be made easier for our traders, divided families, prisoners
and travelers," he said.

President Pratibha Patil’s visit to UK and Cyprus

President Pratibha Patil visited UK and Cyprus from October 27 to 31, 2009. During her visit to
UK she received the Baton of the Commonwealth Games from the Queen of England at a
ceremony in the Buckingham Palace in London on October 29.

This was the third State visit by an Indian President to the UK. The first was by President S.
Radhakrishnan in 1963 and the second by President R. Venkataraman in 1990. This was also the
first State visit after the commencement of the strategic partnership between India and the UK
in 2009.

During her visit, President Patil interacted with Queen Elizabeth of England as also met Prime
Minister Gordon Brown, leader of the opposition David Cameron and leader of the Liberal
Democratic Party Nick Clegg.

She also addressed in London a business meeting organised by the UK India Business Council.

Gandhi letters handed By UK to President Patil: Mahatma Gandhi won’t receive letters not
bearing stamps as a matter of principle. But he chose to write back and inform sender
Hamdiullah Afsar, a contemporary poet of those times, of his decision. These and many such
aspects of Gandhi’s personality come out in a set of letters presented by Curry King Ghulam
Noon and NRI from London Nat Purie, who bought some of the memorabilia associated with
Mahatma Gandhi in an auction in London and presented them to President Pratibha Patil at the
India House.

The memorabilia, consisting of a piece of khadi cloth, ostensibly spun by Gandhi bearing his
signatures along with those of Sarojini Naidu, Gandhi’s disciple Meerabai, secretary Pyare Lal
and some other blurred signs are part of the package bought by the NRI duo that was handed
over to the President.

Gandhi’s letters written in Urdu to his disciple Maulana Abdul Bari and a lesser known Urdu
poet of those times, Hamidullah Afsar, are a study in contrast. These letters bring out the
difference between those who were close Gandhi’s freedom movement and those who tried to
intrude upon his privacy.

The President visited Cyprus on an invitation of the then President of Cyprus Papadopoulus
who visited India in April 2006. The last time an Indian President visited Cyprus was 21 years
ago, again R. Venkataraman, whereas all former Cyprian Presidents have visited India during
their term of office.

Cyprus has always supported India on all crucial issues and expressed its understanding on our
nuclear tests in 1998 and supported Indian position during Kargil war, too.

India is planning a major headway in generating energy through solar sources. It has
approached Cyprus which has made considerable headway in that direction to develop solar
power plants ranging between one MW and 50 MW. An MoU was signed in the presence of
visiting Indian President Pratibha Patil for providing solar power to India.

The MoU states that NORASCO, UPTURN of DALCO company and CASE NEUBERG of the CASE
group of companies will supply solar photovoltaic systems, kits and technology for solar energy
projects in India. It also states that CASE will be Indian technology and engineering partners for
setting up turnkey solar energy plants in India and NORASCO will provide project finance and
investments of EURO 50 million in solar energy sector in India between 2010 and 2015. The
Photovoltaic Technology Group of University of Cyprus (PVT Group) also signed an MoU with
NORASCO whereby PVT Group will act as a technology consulting partner for developing solar
energy projects and solar energy education in India.

RESERVATIONS
Cabinet OKs 50% quota for women in civic bodies
Women will soon occupy half the seats in urban local bodies with the Union cabinet on
Thursday clearing a proposal for raising reservation for them in municipalities from 33% at
present. This provision will apply to the total number of seats to be filled by direct election,
offices of chairpersons and seats and offices of chairpersons reserved for SCs and STs.

The increased representation of women is likely to have significant benefits in terms of higher
priority to women’s issues in critical areas of urban governance and service delivery such as
water supply, sanitation, education and health.

SCANDALS
Former Jharkhand CM Koda booked for graft
Jharkhand presents an example where lack of political stability was allegedly
exploited by a group of legislators led by former Chief Minister Madhu Koda to
fatten themselves. The Enforcement Directorate, on October 9, 2009, slapped
charges under Prevention of Money Laundering Act (PMLA) on the former
Jharkhand CM and three of his former Cabinet colleagues for allegedly amassing
assets running into several hundred crores—between Rs 700 and 800 crore
according to the preliminary estimate.

Koda, the first Independent to become Chief Minister and now a member of Lok
Sabha supporting UPA government, has been charged with having business
interests of diverse kinds—cement, steel, auto, power, agro and tourism. His
alleged investments, estimated at Rs 300-400 crore, are just as widely spread—
from Singapore to Thailand to Dubai to Liberia.

His former colleagues who have also been booked under PMLA include Bhanu
Pratap Shahi, Bandhu Tirkey and Kamlesh Singh. Though they did not prosper as
much as Koda, the trio, according to ED, made personal fortunes ranging from Rs
20 crore to Rs 50 crore.

Koda and his associates milked their success in 2005 Jharkhand polls. The election
threw up a hung House, enabling them to play kingmaker with remorseless agility.
Shibu Soren, who was sworn in as Chief Minister of Jharkhand when he lacked
majority support, had to resign when the group refused to rescue his aspirations.
They helped Arjun Munda of BJP become the Chief Minister and were rewarded
with 'plum' portfolios as part of deal. The arrangement, however, did not last
long. The group ditched BJP after UPA agreed to propel Koda to Chief
Ministership. Others in the group, naturally, held on to their portfolios.

The tenure was marked by allegations of corruption, particularly allegedly dubious

decisions on mining leases to big industrial houses. Later on, with the stink rising
to embarrassing levels, Congress wanted to dissociate itself from the
arrangement, but allies RJD and Jharkhand Mukti Morcha prevailed. The import of
allegations of the ED begin to sink in deeper when two other factors are
considered. First, the last five years have seen Maoists rapidly expanding their
influence in Jharkhand, turning huge swathes into "liberated Red zones". Also, the
office of the Governor also came under a cloud, with CBI raiding two close aides
of Governor Syed Sibte Razi.

TERRORISM; LAW & ORDER

New anti-Naxal policy
The Centre’s plans to take the battle to Naxalites hinge on a strategy that will see
Central and State forces acting in concert to first wrest control of areas long
considered “Red” zones and then facilitate expeditious restoration of civil
administration. The Cabinet Committee on Security (CCS) has okayed a
comprehensive approach to Maoist extremism with a "clear and hold" doctrine at
the centre of the anti-Naxal "action plan". Moving from the current largely
reactive stance which saw occasional jabs into Maoist hinterland, forces will pro-
actively engage the ultras.

Recognising that draining Maoist swamps would also require restoration of rule of
law and demonstrable development, the government has decided that the forces
used in anti-naxal operations will not pull out after an operation. Rather,
reinforcements will beef up security and set the stage for the civil bureaucracy to
get to work. The developmental aspect of the plan is crucial to denying Maoist
ranks of fresh recruits and addressing the argument that exploitation and abysmal
conditions in tribal areas in far-flung areas has led to "popular" support for the
Red insurgency. Fixing things and making them work was important in showing the
state could deliver.

The view in government is that the offensive cannot be delayed much further.
With alarming signs of an emboldened Maoist leadership targetting urban areas
beyond their known forest hideouts—arrested politburo member Kobad Gandhy
was incharge of operations in cities like Delhi, Mumbai and Pune—the government
is gearing for action and bracing for casualties.

The strategy for acting on intelligence tip-offs and hitting at naxal bases deep in
Red "liberated" zones was put to trial in September 2009 in Chhattisgarh’s
Dantewada. The Maoists were routed but the hazardous forests and complete lack
of infrastructure underlined how difficult it would be for a force to operate
"behind the lines". It is felt that the surge in Central and State forces after the
Assembly elections in Haryana, Arunachal Pradesh and Maharashtra can be
sustained if the local population is convinced that Maoists can be defeated and
that the forces will not leave in a hurry. This would strengthen intelligence
collection and provide the administration with valuable allies as even fence sitters
opt for the winning side.

The Centre plans to deploy 70,000 paramilitary personnel—drawn from CRPF,

ITBP, BSF, SSB, CoBRA and Nagaland Armed Police—in States like Jharkhand,
Chhattisgarh, Orissa, Bengal, Bihar, Maharashtra and Andhra.

Maoists step up the gore, behead police officer

On October 5, 2009, in a barbaric, Taliban-style execution, Maoists beheaded
special branch inspector Francis Indwar and threw his body on a slip road leading
to National Highway 33 that connects Patna to Jamshedpur. The officer was
abducted and held hostage by Naxalites demanding a swap for arrested Maoist
ideologues Kobad Ghandy in New Delhi, Chhatradhar Mahato in Kolkata and
another captured leader Chandrabhushan Yadav.

CURRENT INTERNATIONAL AFFAIRS

EUROPEAN UNION
Ireland endorses Lisbon treaty
On October 3, 2009, Irish voters strongly endorsed the European Union's Lisbon
Treaty-16 months after their first vote rejecting it plunged EU reforms into
deadlock.

About 67% voted "Yes". Irish Prime Minister Brian Cowen hailed a "clear and
resounding" endorsement. Political leaders across the EU have also welcomed the
result. The President of the European Commission, Jose Manuel Barroso, said it
was a great day for Europe. He urged the leaders of Poland and the Czech
Republic-the only other countries yet to ratify Lisbon Treaty-to sign the treaty as
soon as possible.

The treaty-which is aimed at streamlining decision-making in the 27-nation bloc-

cannot take effect until all 27 member States ratify it.

Ireland was the only EU member State to hold a referendum on Lisbon Treaty,
though there have been calls for referendums in several countries.
Irish opinion is thought to have swung behind the "Yes" vote this time because of
the severity of the economic downturn, as well as the legal "guarantees" on Irish
sovereignty that the EU pledged after the first referendum.

The legally binding "guarantees" state that Lisbon Treaty will not affect key areas
of Irish sovereignty, such as taxation, military neutrality and family matters such
as abortion-significant issues in 2008's campaign in Ireland. But they have not yet
been attached to the treaty.

The treaty is intended to make EU institutions better suited to the enlarged bloc
of 27. But opponents see it as part of a federalist agenda that threatens national
sovereignty.

PAKISTAN
Multi-terror attacks on cops, 40 dead
Teams of terrorists unleashed attacks on three law enforcement facilities in
Lahore on October 15, 2009, even as car bombs exploded in two cities near the
Afghan border, killing 39 persons in an escalating wave of anti-government
violence in Pakistan.

No group claimed responsibility, though suspicion fell on Pakistan’s umbrella

Tehreek-e-Taliban movement, Al Qaeda and home-grown Islamist groups Lashkar-
e-Jhangvi and Jaish-e-Muhammad.

The co-ordinated assaults underscored the power of armed radicals to strike in

the heart of Pakistan, and the weakness of poorly equipped security forces,
despite promises of a new offensive against the Taliban. Nuclear-armed Pakistan,
a key ally in the US-led fight against terrorism, is reeling from two years of
Taliban-linked attacks that have escalated such that over 160 people have been
killed since October 5. Pakistan's weak civilian government said the country faced
a new war after the slew of militant attacks away from the insurgent hotbed of
the north-west tribal region.

WORLD ECONOMY
Human Development Index
While China figures among the only five countries across the world that improved
their Human Development Index (HDI) rankings, 2009, by three or more points,
India continues to cut a sorry figure, slipping six points (from the last compilation)
in the latest UNDP Human Development Index. Overall, however, India made
progress on HDI, improving its value from 0.556 in 2000 to 0.612 in 2007.

As against a standing of 128 in the 2008 UN Human Development Report, India has
been ranked 134th among the 182 nations surveyed. The slip represents poor
progress on some indicators of people’s well-being, including life expectancy,
literacy, school enrolment and GDP per capita.

In China (ranked 92), along with Colombia, France, Peru and Venezuela, which
improved their rankings by at least three points, the fillip has been attributed to
increase in incomes and life expectancy. China, Colombia and Venezuela’s
progress has also been driven by improvement in education. The report concludes
that disparities in life expectancy in the world can range up to 30 years. Despite
progress in the last 25 years, disparities in people’s well-being in rich and poor
countries continue to be unacceptably wide.

2009 report represents the most extensive coverage ever of 182 countries. As for
rankings, the top three ranked countries in the HDI are: Norway, Australia and
Iceland. France rejoined the top 10 countries after dropping down for one year,
while Luxembourg fell from the top 10.

US exits recession
The world's largest economy, USA, has climbed out of recession as it grew by 3.5
per cent in the third quarter ending September 30, 2009, the first quarterly
expansion in a year, thanks to higher consumer and government spending among
others.

The economy, which was battered by the worst financial turmoil since the 1930s
Great Depression, expanded last in the second quarter of 2008, when GDP rose 1.5
per cent.

The advanced estimates from the US Bureau of Economic Analysis (BEA) showed
that American GDP expanded 3.5 per cent in the third quarter.
Consumer spending, which accounts for two-thirds of the GDP, grew 3.4 per cent
in the quarter under review, compared to 0.9 per cent fall in the previous
quarter.

USA is the latest advanced economy to shrug off recession and joins the likes of
Germany, France, Japan and Singapore. However, the country would be officially
out of recession only after the National Bureau of Economic Research (NBER)
declares so. A country is said to be in recession if its economy contracts for two
straight quarters.

The third quarter growth was primarily due to rising personal consumption
expenditures (PCE), higher federal government spending and exports.

One of the main factors for the upturn in economic activities in the third quarter
is the government's 'Cash for Clunkers' programme for the auto industry, which
resulted in increased car sales. The initiative which ended in August had offered
rebate of about $4,500 for consumers to purchase new cars and sell their old
models.

ENVIRONMENT
UN climate talks end without any consensus
As the Bangkok round of talks on climate change in October 2009 came to an end,
the rift between the developed and developing countries appeared to have
deepened and widened. The developed countries would like to abandon the Kyoto
Protocol, in favour of a new agreement, while the developing countries would like
an extension of the Protocol. There has been virtually no progress on the issue of
finance and mid-term emission reduction targets for industrialised countries.

Developing countries have opposed scrapping the Kyoto Protocol as it clearly

places an obligation on developed world to deepen emission cuts and to provide
finance to help developing countries to adapt to and mitigate climate change. The
United States and Australia were among the 42 countries that sought to junk the
Protocol. They argued that the world had changed since the 1990s, and keeping in
mind the ground realities a new agreement needs to be crafted. This agreement
would require all countries to take on emission cuts. This move was resisted at
Bangkok, with the developing countries under the G-77 umbrella argued that such
a proposal would violate the Kyoto Protocol and the Bali Action Plan.

The bright spot in Bangkok was the unveiling of an aggressive emission reduction
plan by Norway. The Scandinavian country had previously committed
unconditionally to slashing emissions 30 per cent below 1990 levels by 2020. Its
new pledge is to cut greenhouse gas output by 40 per cent if an international
agreement is reached in Copenhagen in December 2009.

Lawmakers join hands to fast-track carbon cut

The time to act is now, whether or not there is an international consensus on
climate change at the UN Copenhagen talks in December, say the 100-odd
legislators from major economies representing major political parties—including
US, UK, France, China, Brazil, Mexico and India.

The lawmakers converged at the Danish capital at a GLOBE International and

COM+ meeting held over two days from October 24-25, 2009 at the Folketing, the
Danish Parliament, in preparation to the UNFCCC meeting in December that is
expected to find an alternative to the Kyoto Protocol that is to conclude in 2012.

The legislators have signed key guiding principles set out by Chinese Congressman
Wang Guangtao, chairman of the steering committee on environment and
resources protection, National People’s Conference, China and US Congressman
Edward Markey to enable enacting of climate change laws in their respective
countries.

The Wang-Markey principles outline energy standards, forestry preservation, and

renewable energy that could see 70% of the emissions cuts needed by 2020 if the
global average temperature rise is to be limited to 2°C.

They include standardized action on building and appliance standards; renewable

energy; vehicle fuel and efficiency standards; and forestry. Such coordinated
action—especially in areas like domestic, transportation and industrial energy
efficiency—will result in cost savings and more competitiveness.

The overriding theme has been to stress the need to accelerate domestic
legislation that bind national governments to short, medium and long-term targets
for emissions; a commitment to "climate compatibility assessments" for major
government policies; a duty on governments to report to parliament regularly on
their progress in meeting targets; and a commitment to a regular review to ensure
that policies are consistent with the latest science.

India joins rich nations to protect forests

India, along with five other developing countries, has joined a group of five rich
nations to work on a $350-million project to fight climate change through forest
management.

The six developing nations, which also include Brazil, Congo, Morocco, Nepal and
Romania, have joined the group of five contributing countries-the US, Australia,
Britain, Denmark and Norway-under the governing body of the Forest Investment
Programme (FIP).

The FIP Trust Fund Sub-Committee met in Washington for the first time on
October 29, 2009, to begin implementation of the Program, including
consideration of criteria for how to select pilot countries and regions.

The FIP governance structure is among the first in a new generation of

partnerships among developing and developed countries and other stakeholders
which takes account of the need for a level playing field in addressing climate
action.

INTERNATIONAL RELATIONS
RIC meeting in New Delhi
Global terrorism with special focus on Afghanistan dominated the ninth trilateral
meeting of the foreign ministers of Russia, India and China (RIC) that concluded in
Bangalore on October 27, 2009.

The ministers emphasised the need for the three countries to assist Afghanistan in
fighting terrorism, ensuring security, restoring peace and stability and building a
democratic and pluralistic Afghanistan.

The meeting was held in the backdrop of two significant bilateral issues—meeting
between Prime Minister Manmohan Singh and China’s Premier Wen Jiabao at Hua
Hin, Thailand and trade, economy, scientific and climate meeting with Russia in
Moscow on October 21—and resolved to jointly fight terrorism and narcotic
trafficking with mention also being made on diplomatic settlement of Iran nuclear
issue and denuclearization of the Korean peninsula.

The demand for a greater role for India in the United Nation affairs has gained
momentum once again. Russia and China made a strong bid for India’s status in
international affairs be accorded importance. "There is a need for a
comprehensive reform of the United Nations with a view to make it more efficient
so that it can deal with the current global challenges more effectively. Russia and
China attach importance to the status of India in international affairs. We urge
the world communities to understand and support India’s aspirations to play a
greater role in the United Nations," Russian and China’s foreign ministers Sergei
Lavrov and Yang Jie Chie, jointly stated.

Obama signs into law Pak Aid Bill

US President Barack Obama has signed into law legislation that will provide $7.5
billion in US aid to Pakistan over the next five years.
"This law is the tangible manifestation of broad support for Pakistan in the US, as
evidenced by its bipartisan, bicameral, unanimous passage in Congress," the White
House said in a statement.

Obama signed the legislation after hectic jockeying by Pakistan's Foreign Minister
Shah Mahmood Qureshi to secure assurances from Congress that the Bill does not
trample on Pakistan's sovereignty.

The United States Congress sought to allay Pakistani concerns. Lawmakers

released an explanatory statement assuring critics of the legislation that the Bill
in no way impinges on Pakistani sovereignty.

"This Act formalises that partnership, based on a shared commitment to improving

the living conditions of the people of Pakistan through sustainable economic
development, strengthening democracy and the rule of law, and combating the
extremism that threatens Pakistan and the United States," the White House
statement said.

Sen John Kerry, a co-author of the legislation, said the statement was issued "to
set the record straight". He emphasised that the legislation in no way sought to
“compromise Pakistan's sovereignty, impinge on Pakistan's national security
interests, or micromanage any aspect of Pakistani military or civilian operations".
House Foreign Affairs Committee chairman Howard Berman, an author of the
legislation, said the statement was "a reflection of our desire to be long-term
partners with the Pakistani people".

Visit of Chinese PM to N-Korea

North Korea’s leader Kim Jong-il made a rare appearance to personally greet
visiting Chinese premier Wen Jiabao at the start of a trip to North Korea in the
month of October 2009.

Kim Jong-il’s unusual outing followed by Wen’s talks with the premier was a show
of how serious North Korea is about shoring up ties with Beijing, which gives its
poor neighbour crucial economic help and diplomatic backing.

Kim Jong-il is widely believed to have suffered a serious illness in 2008, and it is
rare for him to personally greet an arriving visitor. Even audiences are uncommon.

North Korea told Jiabao that it was open to bilateral and multilateral talks on its
nuclear programmes. The comments appeared to be the latest indication of
Pyongyang’s apparent willingness to return to six-nation disarmament talks that it
broke off in early 2009.

China termed Wen’s visit a "goodwill" trip to mark the 60th anniversary of
diplomatic relations, but nuclear issues figured to be high on the agenda.

Hillary Clinton's visit to Pakistan

Stating that Pakistan was at a "critical point" of history, the US has offered to
stand soldier-to-soldier with the country in its fight against "tenacious and brutal
terror groups". "This is not Pakistan's fight alone," US Secretary of State Hillary
Clinton said during her visit to the country in October 2009.

During her maiden visit to Pakistan after assuming office, Clinton met President
Asif Ali Zardari, Prime Minister Yousuf Raza Gilani and Army Chief Gen Ashfaq
Parvez Kayani.

She refused to be drawn into the debate on whether there are "good Taliban" and
made no reference to contentious issues like differences between the US and
Pakistan on conditions attached to economic aid.

SUMMITS
ASEAN Summit
The 15th ASEAN Summit and the related summits, including the 12th ASEAN-China
Summit, the 12th ASEAN-Japan Summit, the 12th ASEAN-Republic of Korea
Summit, the Seventh ASEAN-India Summit, the 12th ASEAN Plus Three Summit and
the Fourth East Asia Summit, were held on October 23-25, 2009 in Cha-am Hua
Hin, Thailand. ASEAN Leaders discussed among themselves and with relevant
Dialogue Partners on how to realise an ASEAN Community by 2015.

Highlights for the Summits include the inauguration of the ASEAN

Intergovernmental Commission on Human Rights, the adoption of a declaration on
climate change to reaffirm ASEAN position in the negotiation under the UN
Frameworks Convention on Climate Change (UNFCCC), as well as the adoption of a
declaration on education cooperation to achieve an ASEAN Community. Other
issues affecting the well-being of the peoples, including food and energy security,
financial stability, pandemics as well as disaster management, were also
discussed.

During the Summits, ASEAN Leaders also met with representatives from the ASEAN
Inter-Parliamentary Assembly (AIPA), ASEAN Youth and ASEAN Civil Society
Organisations which reflected Thailand’s will to promote people’s participation in
ASEAN Community-building process.

The 15th ASEAN (Association of Southeast Asian Nations) Summit and the related
summits were concluded Sunday afternoon, with a series of documents being
adopted by the participating national leaders.

Key documents, such as the Cha-am Hua Hin Declaration on the Inauguration of
the ASEAN Intergovernmental Commission on Human Rights (AICHR), Cha-am Hua
Hin Declaration on Strengthening Cooperation on Education to Achieve an ASEAN
Caring and Sharing Community, Draft ASEAN Joint Statement on Climate Change,
and ASEAN Leaders' Statement on ASEAN Connectivity were adopted by ASEAN
leaders and other participating national leaders.

The next ASEAN summit and related summits will be held in Vietnam.

East Asia Summit

The Fourth East Asia Summit was rescheduled several times, had its venue
changed and one attempt to hold it was cancelled due to the 2008–2009 Thai
political crisis. It was ultimately held on October 25, 2009 in Cha-am and Hua Hin,
Thailand. ASEAN (Association of Southeast Asian Nations) countries, China, Japan,
South Korea, India, Australia, and New Zealand attended the Summit.

The Summit adopted two documents. The first was a statement on disaster
management. The second related to the re-establishment of Nalanda University by
India.

The Chairman's Statement noted: We acknowledged the importance of regional

discussions to examine ways to advance the stability and prosperity of the Asia
Pacific region. In this connection, we noted with appreciation the following:
(a) the Philippines’s proposal to invite the heads of other regional fora and
organizations in Asia-Pacific to future EAS meetings to discuss measures that will
protect the region from future economic and financial crisis and strengthen Asia
economic cooperation, including through the possible establishment of an
economic community of Asia.
(b) Japan’s new proposal to reinvigorate the discussion towards building, in the
long run, an East Asian community based on the principle of openness,
transparency and inclusiveness and functional cooperation.
(c) Australia’s proposal on the Asia Pacific community in which ASEAN will be at
its core, will be further discussed at a 1.5 track conference to be organized by
Australia in December 2009.

The East Asia Summit is a forum for dialogue on broad strategic, political and
economic issues of common interest and concern with the aim of promoting
peace, stability and economic prosperity in East Asia. It is an open, inclusive,
transparent and outward-looking forum, which strives to strengthen global norms
and universally recognised values with ASEAN as the driving force working in
partnership with the other participants of the East Asia Summit.

INTERNATIONAL TERRORISM
Pak’s Saeed farce continues
Hafiz Saeed, who has shown to be the mastermind behind the 26/11 terror assault
on Mumbai, has been allowed to go scot-free yet again. In a development which
lays bare Pakistan’s game of deceit in acting against perpetrators of the attack,
the Lahore High Court, in October 2009, dismissed two cases registered against
him on the ground that the Jamaat-ud-Dawa, the organisation headed by him, was
not 'proscribed' in Pakistan. JuD is the new avatar of the banned Lashkar-e-Taiba.

Describing the case against Saeed as arising out of a 'mala fide intention' by the
Punjab provincial government, the court quashed the cases, which were
registered at police stations in Faisalabad for allegedly inciting people to wage
'jihad' (holy war) against 'infidels'.

The first FIR was based on his preaching session at Royalton Hotel in Faisalabad’s
Canal Road on August 27, 2009, in which Saeed urged people to retaliate against
those who’ve suppressed their rights. He explained away the problems of the
American economy as God’s way of retaliation.

The second FIR was lodged over his speech at an Iftar dinner at Peoples Colony,
Jaranwala Road Faisalabad on August 26. In this tirade, Saeed accused India of
stage-managing the 26/11 attacks and conspiring against Pakistan—a clear
attempt to invoke anti-India sentiments.

Car Bomb Targets India’s Kabul Mission

In yet another reminder of the desperation of terror groups and their sponsors to
get India out of Afghanistan, Taliban terrorists executed a suicide car bomb attack
on the Indian embassy in Kabul on October 8, 2009, killing 12 people and injuring
more than 80 others. The attack came 15 months after the deadly strike near the
embassy in 2008, which left more than 60 dead, including an IFS officer and the
Indian defence attache.

The damage could have been much more but for the security arrangements put in
place after 2008’s attack that was traced to ISI-affiliate Sirajuddin Haqqani.

Taliban spokesman Zabiullah Mujahid took responsibility for the attack. In a

statement posted on a website, he claimed the attacker was an Afghan who blew
up his SUV stuffed with explosives outside the embassy. Indian security agencies,
however, said this could be a smokescreen to keep the ISI out of scrutiny.

Clearly suggesting a Pakistani link to the suicide bomb attack, India said the
terrorist act was the handiwork of forces which had their patrons residing across
the border. Undeterred by the suicide attack, India also reiterated its "unwavering
commitment" to the reconstruction of Afghanistan and its assistance to the Afghan
people "in realising a democratic, peaceful and prosperous" country.

Top military brass among 50 killed in Iran suicide blast

A suicide bomber killed seven commanders of Iran’s elite Revolutionary Guards
and up to 42 others on October 17, 2009, in an attack that President Mahmoud
Ahmadinejad charged had been plotted from neighbouring Pakistan.

The foreign ministry of Iran called in Pakistan’s charge d’affaires over the
bombing, which targeted one of the Islamic republic’s most prestigious
institutions in a region that has been a hotbed of Sunni insurgency against the
Shi’ite Muslim regime.

Several tribal leaders in the majority ethnic Baloch Sistan-Baluchestan province

also died in the bombing which left many others wounded.

The chief prosecutor in Sistan-Baluchestan, Mohammad Marziah, said Abdolmalek

Rigi, the head of the shadowy Sunni rebel group, Jundallah (Soldiers of God) had
"accepted the responsibility" for the attack.
The Iranian president hit out at Pakistan over the bombing, accusing it of
sheltering Jundallah militants.

The Revolutionary Guards accused the United States of involvement. "Surely

foreign elements, particularly those linked to the global arrogance, were involved
in this attack," a Guards statement quoted by television said. Iran often uses the
term "global arrogance" to refer to the United States, its old foe.

FBI foils LeT plan to attack India

Pakistan-based terror group Lashkar-e-Taiba (LeT), blamed for the 26/11 Mumbai
terrorist attack, was planning to use an American national to carry out another
major terrorist attack in India, according to the Federal Bureau of Investigation
(FBI) of USA.

The man, identified as David Coleman Headley, was arrested in early October
2009, by FBI Joint Terrorism Task Force at O’Hare International Airport.

Headley, 49, along with a Canadian citizen of Pakistani origin, Tahawwur Hussain
Rana, have been arrested on charges of plotting a terror attack against the
facilities and employees of a Danish newspaper which had published cartoons of
the Prophet Mohammed in 2005.

Rana is the owner of several businesses, including First World Immigration

Services, which has offices on Devon Avenue in Chicago, as well as in New York
and Toronto.
According to the FBI affidavit filed in a Chicago court, Headley was in close
contact with Ilyas Kashmiri and several unidentified leaders of LeT.

Kashmiri is the operational chief of Pakistan-occupied Kashmir section of Harakat-

ul Jihad Islami (HUJI), a Pakistani-based terrorist organisation with links to Al-
Qaida.

WORLD TRADE
SAARC Ministers promise to free services sector
Trade Ministers from SAARC countries have decided to fast-track negotiations on
liberalising the services market within the region, a move that will enable freer
movement of people within the region and give a boost to investments in areas
like tourism, financial services and telecom.

Services could be incorporated into the South Asia Free Trade Agreement (SAFTA)
soon.

SAARC Ministers, who met in Kathmandu in October 2009, also decided to work on
reducing the negative list of items that are not covered under SAFTA to make the
free trade agreement more "meaningful". SAFTA is an agreement for elimination
of tariffs on goods traded within the SAARC region, and was signed in January
2004.

Indian Commerce and Industry Minister Anand Sharma pointed out that India had
unilaterally reduced its negative list for LDCs in the SAARC region, from 744 items
to below 500 items. "We are also working towards reduction on negative list with
reference to non-LDCs of SAARC (which include Pakistan and Sri Lanka)," the
Minister said. The minister urged the non-LDC members to consider reviewing
their respective negative lists in respect of both LDCs and non-LDCs, so that intra-
SAARC trade could be further expanded.

Interestingly, Pakistan continues to trade with India based on a positive list of

items it allows from India. The SAFTA, however, requires all members to trade
with each other on the basis of a negative list, which means that all goods would
be allowed to be traded except the ones included in the negative list.

The Union government, acting on a proposal made by Bihar Chief Minister Nitish
Kumar, has declared dolphin as a national aquatic animal. The animal has been
declared as a ‘highly endangered’ under the ICUN and Schedule I of Wildlife
Protection Act (1972), Government of India.

United Arab Emirates (UAE) has become the top destination for Indian exports in
2008-09, displacing the US from the number one rank. India’s exports to UAE grew
by phenomenal 53% to $23.92 billion primarily due to sharp increase in gems and
jewellery export.

Cloud-based services are those services in which software is accessed over

internet by a company, and maintained at data centres of the service provider,
instead of a company’s computers.
Michael Jackson’s new single “This Is It” features backing vocals by Jackson’s
brothers, opens with a soft, soulful introduction and the lines: “This is it, here I
stand/I’m the light of the world, I feel grand.”

Delhi, a city people love to hate for its traffic, lack of civic services, civility and now
its inability to appear trussed and ready for the Commonwealth Games, has found a
place of honour in the National Geographic Traveller magazine’s "50 Places of a
Lifetime." The Capital and Fatehpur Sikri are the only two Indian destinations to
make it to the prestigious list that is part of the travel magazine’s compilation that
comes after a decade-long gap. In fact, the first list published in 1999 featured the
Taj Mahal and put Kerala on the international map after it was described as ‘Paradise
Found’. The 25th anniversary special October issue also includes cities like Berlin, St
Petersburg and Mexico City while short-listing Aleutian Islands in Alaska in its section
on wild places and the Hawaiian island of Molokai as paradise found.

India-born Nobel laureates: Ronald Ross (Medicine, 1902); Born in Almora.

Rudyard Kipling (Literature, 1907); Born in Bombay. Rabindranath Tagore
(Literature, 1913) C.V. Raman (Physics, 1930) Hargobind Khorana (Medicine, 1968)
S. Chandrashekhar (Physics, 1983) Amartya Sen (Economics, 1998), Venkatraman
Ramakrishnan (Chemistry, 2009).

Yudh Abhyas was the largest-ever ground combat exercise held jointly between
India and US armed forces at Babina, near Jhansi.

Kerala High Court has become the first in India to post details of the assets and
liabilities of all its judges on the Court’s official website.

Orissa has been renamed as Odisha and Oriya language has been renamed as Odia.
The proposed change will require amendment to the First and Eighth Schedule of the
Constitution to be officially accepted.

Major cities of India that have been renamed after independence include: Kanpur
(Cawnpore), Thiruvananthapuram (Trivandrum), Mumbai (Bombay), Chennai
(Madras), Kolkata (Calcutta), Pune (Poona) and Kochi (Cochin).

The world’s largest cruise liner, Oasis of the Seas, began its maiden voyage to
Florida on October 30, 2009, gliding out of a shipyard in Finland. With an
amphitheatre, basketball courts and an ice rink on board, the 16-deck liner spans
1,200 feet from bow to stern. Its 2,700 cabins can accommodate 6,300 passengers
and 2,100 crew. The ship cost $1.5 billion and took two and a half years to build. It
boasts of four swimming pools, volleyball and basketball courts, and a youth zone
with theme parks and nurseries for children.

World Sight Day is observed on October 8.

World Standards Day is celebrated on October 14.

Global Iodine Deficiency Disorders Day is observed on October 21.

India has signed agreements with the World Bank for $4.2 billion (around Rs
20,000 crore) credit to support the country's infrastructure projects and also for
recapitalising the public sector banks. State-run PowerGrid Corp of India, India
Infrastructure Finance Company Ltd (IIFCL) signed pacts for $1 billion and $1.195
billion, respectively. The Centre signed the agreement for $2 billion to recapitalise
the state-run banks. The funding to IIFCL has two components, IBRD loan of $1.195
billion long-term finance to infrastructure projects and a grant of $5 million for
capacity building of IIFCL, which finances infrastructure projects. The loan will be
utilised for strengthening transmission systems for Sasan, Mundra and
Krishnapatnam Ultra Mega Power Projects and South-West interconnection.

The 150th birth anniversary of Rabindranath Tagore will be celebrated

internationally by the UNESCO in 2010 as a mark of respect to the Nobel Laureate
whose literary work blends universal humanistic values and sympathy for the poor.
The agency will also celebrate the 100th birth anniversary of Chilean poet Pablo
Neruda and 100th birth anniversary of Afro-Martinican littérateur Aime Cesaire. The
UNESCO will establish prizes and medals in the name of these literary giants. It will
also organise a series of seminars and conferences across the world to spread
awareness about their literary works.

Larsen and Toubro (L&T) has built India’s largest ship-building yard near Chennai.

India has announced sites for setting up light water reactor-based nuclear plants in
cooperation with the United States, France and Russia. Power plants would be set up
in cooperation with the US at Chhayamithi Virdi in Gujarat and Kovvada in Andhra
Pradesh, while Jaitapaur in Maharashtra has been designated as the site for the plant
to be set up with France’s assistance. Kudankulam in Tamil Nadu and Haripur in
West Bengal have been chosen as the sites for power plants to be set up in
cooperation with Russia.

The new series of Index of Industrial Production (IIP) will have base year as
2004-05 for calculating factory production.

Cope-India 09 was joint air exercise that Indian Air Force held with US Air Forece at
Babina, near Agra.

Four-time world champion and Khel Ratna awardee woman boxer M.C. Mary Kom
was India’s flag-bearer in the third Indoor Asian Games held at Hanoi.

CURRENT GENERAL KNOWLEDGE: OCTOBER

2009
ABBREVIATIONS
EAS: East Asia Summit.
GRBA: Ganga River Basin Authority.
LCROSS: Lunar Crater Observation and Sensing Satellite.

AWARDS
Nobel Prizes 2009
For Peace: In a decision that caused worldwide jaw-drops, the Nobel Committee
awarded the Peace Prize to US President Barack Obama, citing his work in nuclear
weapons elimination and international diplomacy. Critics immediately said the award
appeared based more on hope than lasting achievement typical for nominees. But the
Nobel committee statement read, ‘‘Obama has as President created a new climate in
international politics,’’ although it evidently took into account his work in the months
since he took office and perhaps even his exertions as Senator and Presidential
candidate.

For Literature: Romanian-born German writer Herta Mueller for work that “with the
concentration of poetry and the frankness of prose, depicts the landscape of the
dispossessed”. Mueller is the 12th woman to win the Nobel Prize in literature. Recent
female winners include Austria's Elfriede Jelinek in 2004 and British writer Doris
Lessing in 200

For Economics: Elinor Ostrom and Oliver Williamson of the United States, for their
work on the organisation of cooperation in economic governance.

Ostrom is the first woman to win the Economics Prize, which has been awarded since
1969. “The research of Elinor Ostrom and Oliver Williamson shows that economic
analysis can shed light on most forms of social organisation,” the jury said.

Ostrom won “for her analysis of economic governance” especially relating to the
management of common property or property under common control. Her work
challenging the conventional wisdom that common property is poorly managed and
should be either regulated by central authorities or privatised, it added.

Williamson was honoured “for his analysis of economic governance, especially the
boundaries of the firm.” He has argued that hierarchical organisations such as firms
represent alternative governance structures, which differ in their approaches to
resolving conflicts of interest”.

The Economics Prize is the only one of the six Nobel prizes not created in Swedish
industrialist Alfred Nobel’s 1896 will—it was created much later to celebrate the 1968
tri-centenary of the Swedish central bank and was first awarded in 1969.

For Chemistry: India-born structural biologist, Dr Venkatraman ‘’Venky’’

Ramakrishnan, joins the long list of peripatetic Indians who had early education in
India but thrived in the western academic eco-system, to have won the Nobel. The
Swedish Nobel Committee awarded the Prize to Dr Ramakrishnan, who is currently
affiliated with the MRC Laboratory of Molecular Biology in Cambridge, UK, for his work
on protein-producing ribosomes, and its translation of DNA information into life. He
shares the Prize with Dr Thomas Steitz of Yale University, Connecticut, and Dr Ada
Yonath of Weizmann Institute of Science in Israel.

Ramakrishnan, Steitz and Yonath demonstrated what the ribosome looks like and how
it functions at an atomic level using a visualisation method called X-ray crystallography
to map the position of each of the hundreds of thousands of atoms that make up the
ribosome, according to the MRC.

For Physics: Three scientists, Charles K. Kao, Willard S. Boyle and George E. Smith,
who created the technology behind digital photography and helped link the world
through fibre-optic networks.

Charles K. Kao was cited for his breakthrough involving the transmission of light in
fibre optics while Willard S. Boyle and George E. Smith were honoured for inventing an
imaging semiconductor circuit known as the CCD sensor. All three had American
citizenship. Shanghai-born Kao also holds British citizenship, while Boyle is also
Canadian.

For Medicine: Three American scientists, Australian-born Elizabeth Blackburn, British-

born Jack Szostak and Carol Greider, share the award for the discovery of a built-in
protection device in chromosomes, a finding that sheds light on ageing and may help
in the fight against cancer. Their study was linked to telomerase, an ‘immortality
enzyme’ that allows cells to divide continuously without dying. The institute said the
three had "solved a major problem in biology", namely how chromosomes were copied
completely during cell division and protected against degradation.

Booker Prize, 2009

British author Hilary Mantel has won the prize for her novel Wolf Hall, which has been
hailed by the judges as an ‘extra-ordinary piece of storytelling’. She took 20 years to
decide whether to write it. Her other well-known books include a memoir Giving up the
Ghost (2003), and Beyond Black (2005).

Indira Gandhi Award for National Integration, 2008

Noted journalist from Jammu and Kashmir Balraj Puri has been given the prestigious
award “for his yeoman work in promoting and preserving the spirit of national
integration in the country”.
The award was instituted by the Congress in its centenary year to give recognition to
outstanding contribution to the cause of national integration and understanding by
individuals or institutions and comprises of a citation and cash award of Rs 5 lakh.

BOOKS
Wolf Hall
This novel has been written by British author Hilary Mantel, winner of the Booker Prize
2009. Set in the 1520s, the novel tells the story of English statesman Thomas
Cromwell’s rise to prominence through political intrigues in Henry VIII’s court.

CONFERENCE
UN Climate change conference
Indian government, in collaboration with the UNDESA, organised the ‘High-Level
Conference on Climate Change: Technology Development and Transfer’ on October 22
and 23, 2009 at New Delhi.

The conference was a step forward in the process of the international policy dialogue
on technologies needed to address climate change. The emphasis was on defining a
road map for technology development and transfer by bringing together the key
players in the international climate change community. Technology has a central and
fundamental role in addressing climate change concerns with due regard to the
imperatives of national economic growth, energy security, and sustainable
development.

The outcomes of the conference will support the United Nations Framework Convention
on Climate Change (UNFCCC) process.

CYBER SPACE
Creating Wave Google style
Google Wave is the latest buzz to hit the internet shores. The Web search giant—it has
already sent out 1,00,000 select invites for a limited preview—has announced what it
claims to be the future of all internet conversations.

What Wave does is to integrate e-mail, instant messaging (IM), collaboration, Google
maps as well as search. It actually empowers your browser to handle all your
communication needs. The Wave, however, requires a Chrome Frame plug-in to
function on the ubiquitous Internet Explorer as of now. The preferred browsers seem
to be Chrome, open source Firefox and Apple’s Safari.

As Google Wave’s engineering manager Lars Rasmussen puts it: “Wave is an attempt
at redefining communication over the internet.” It’s a contemporary take at the four-
decade-old e-mail. Google makes an innovation leap with the Wave. Wave is both a
product and an open source platform for developers for building new apps.

Wave’s most striking feature is its speed. It lets users transfer data, pictures and files
real-time and also facilitates collaborative editing. Every letter typed in is transmitted
immediately into the other user’s Wave. Even images can be transmitted with almost
no time loss.

Once a new wave is created, akin to composing a mail in your e-mail account, you can
add contacts and the wave is sent to them. All the people included in the wave can
immediately reply or start editing the wave.

Once a wave is initiated, anybody involved in the wave can reply to or edit any part of
the original wave. For one, if the initiator of the wave sends out five questions and the
other user can click on each question and answer it right below.

PERSONS
Mueleer, Herta
Romanian-born German writer Herta Mueller has won the 2009 Nobel Prize in
literature. The 56-year-old author, who emigrated to Germany from then-communist
Romania in 1987, made her debut in 1982 with a collection of short stories titled
Niederungen, or Lowlands in English, which was promptly censored by her
government.

In 1984 an uncensored version was smuggled to Germany where it was published and
her work depicting life in a small, German-speaking village in Romania was devoured
by readers there. That work was followed by Oppressive Tango in Romania.

Mueller's parents were members of the German-speaking minority in Romania and

father served in the Waffen SS during World War II. After the war ended, many
German Romanians were deported to the Soviet Union in 1945, including her mother,
who spent five years in a work camp in what is now Ukraine.

Most of her works in German, but some works have been translated into English,
French and Spanish, including The Passport, The Land of Green Plums, Travelling on
One Leg and The Appointment.

Ramakrishnan, Dr Venkatraman "Venky"

An India-born structural biologist whose quest for scientific excellence took him from
undergraduate schools in India to graduate and post-doc studies in US and research in
UK, he has been jointly awarded the Nobel Prize in Chemistry for work on proteins that
control life.
He is the fourth scientist of Indian origin to win a Nobel Prize after Sir C.V. Raman
(Physics, 1983) Hargobind Khorana, (Medicine, 1968) and Subramaniam
Chandrashekhar (Physics, 1983).

Born in Chidambaram, Tamil Nadu, to scientist parents C.B. Ramakrishnan and

Rajalakshmi, 'Venki' moved to the United States in the early 1970s to earn a PhD in
physics. Since then the scientist, who is a United States citizen, has in a career
studded with high honours pushed the frontiers of knowledge back with an almost
messianic zeal.

PLACES
Bangkok
The 7th Session of the Ad-hoc Working Group on Long-term Cooperative Action on
Climate change was held here in last week of September 2009.

Bengaluru
The meeting of Foreign Ministers of RIC (Russia-India-China) was held here in October
2009.

Kumharia
The Central government has approved this site in Fatehabad district of Haryana to set-
up a nuclear power project by Nuclear Power Corporation of India.

Rio de Janerio
Capital of Brazil, this city will host the 2016 Olympics. With this the Olympic Games
head for South America for the first time.

RESEARCH
CERN Grid
With domain names in Hindi, Arabic and Chinese set to become a reality on the Web,
the pundits in this science hub, where the internet was arguably invented, claim the
next giant leap towards internationalisation will be the grid. The grid, which is made of
thousands of desktops, laptops, supercomputers, data vaults, mobile phones,
meteorological sensors and telescopes will start work when protons beams collide with
each other in the world’s biggest experiment ever, deep in a tunnel on the French-
Swiss border.

It is a revolution, say scientists of the European Organization for Nuclear Research

(CERN) because it uses the internet but is not the internet. Using cloud computing, the
grid will combine the resources of more than 100,000 processors from more than 170
sites in 34 countries and will be accessible to thousands of physicists globally. Many
believe the grid will be a boon for countries like India, which rank low on the social
development index. The scientists claim it will change the way the information
superhighway works.

The Web merely shares information on computers, the Grid shares computing power
and data storage capacity also. Scientists can log on anywhere in the world, processing
data across the planet. CERN needs the Grid to store 15 petabytes—equivalent to a
20-km high stack of CDs.

SPACE RESEARCH
NASA bombs moon in search of water
The United States blasted the surface of the moon on October 9, 2009 with two
rockets on a mission to look for water below the lunar surface that could be used by
astronauts on future space missions. At 1130 GMT the LCROSS satellite crashed into
the Cabeus crater floor near the moon’s south pole, at around 9,000 kilometers per
hour, followed four minutes later by a shepherding spacecraft equipped with cameras
to record the impact.

The LCROSS cost 79 million dollars and was launched in June 2009, along with another
probe—the Lunar Reconnaissance Orbiter, which is tasked with producing a detailed
map of the moon.

NASA scientists looked into the 350 tonnes of debris ejected from the cold, dark
Cabeus crater, and after thorough analysis confirmed presence of water. The crater is
100 km across and between 2.5 to four km deep.

The mission came just two weeks after India hailed the discovery of water on the
moon with its Chandrayaan-1 satellite mission in partnership with NASA.

Finding water on Earth's natural satellite is a major breakthrough in space exploration

and will pave the way toward future lunar bases for drinking water or fuel, or even
man living on another planet.

The ‘Moon bombing’ Lunar Crater Observation and Sensing Satellite (LCROSS) is a
product of two years of planning. Soon after taking off LCROSS used Gravity to
slingshot itself into a wide orbit around the Earth that put it on its collision course. As
it closed in on the moment of impact, the craft divided in two. An empty rocket
plunged into the Moon’s south pole at 1.6 miles per second. The smaller probe that
followed had five cameras and four other scientific instruments. The explosion, with
the strength of 1.5 tons of TNT, threw up 772,000 pounds of lunar dirt out of Cabeus
crater.

Robots to clear dead satellites from orbit

Scientists are mulling to use German-built robots for clearing rogue satellites from
Earth's orbit or pushing them into the outer space. Robots that rescue failing satellites
and push "dead" ones into outer space should be ready in four years, British
newspaper 'The Observer' reported.

Experts have described the development by German scientists as a crucial step in

preventing a disaster in the Earth's crowded orbit. In 2008 it was reported that critical
levels of debris circling the Earth were threatening astronauts' lives and future of the
multi-billion-dollar satellite communications industry.

The robots will dock with failing satellites to carry out repairs or push them into
"graveyard orbits", thus freeing vital space in geostationary orbit.

More than 200 dead satellites litter this orbit. Within 10 years that number could
increase fivefold, the International Association for the Advancement of Space Safety
has warned.

MISCELLANEOUS
Endangered dolphins made national aquatic animal
Alarmed over the sharp drop in the number of freshwater dolphins surviving in river
systems across the country, the Union government, acting on a proposal made by
Bihar Chief Minister Nitish Kumar, has declared dolphin as a national aquatic animal.
The animal has been declared as a ‘highly endangered’ under the ICUN and Schedule I
of Wildlife Protection Act (1972), Government of India.

The Ganga River Dolphin is a flag-ship specie, meaning that their strength in river
system would indicate its health. The freshwater dolphin, a blind species, is mainly
found in the Ganga and Brahmaputra river systems in India.

Construction of dams and barrages, increase in pollution-levels, indiscriminate fishing,

the dreadful prospect of the mammal getting entangled in nets—all these factors have
contributed to a reduction in their numbers in two river systems.

In the Ganga, the dolphin is found primarily in the Bijnore-Narora section in Uttar
Pradesh and the Vikramshila sanctuary in Bihar. Thanks to greater involvement of the
community and stakeholders and application of modern technology, WWF-India has
been able to save these mammals from getting depleted.

Biggest Olympic challenge to engage youth

The International Olympic Committee is trying to keep young people around the world
from uttering a dismissive “I.O.C.UL8R” with an online campaign that encourages them
to interact with champion athletes.

Youth today have far more interests, and distractions, than in the days when the
Summer and Winter Games every four years was eagerly anticipated. That threatens
to damp their desire to participate in future Olympics—not to mention their ardour to
watch the Games on television or buy the products sold by Olympic sponsors. To help
address all that before the 2010 Olympics, the committee has been sponsoring a
global campaign carrying the theme “The Best of Us.”

Young people ages 12 to 19 will be invited to create video clips in an effort known as
consumer-generated or user-generated content. The clips are to show them
responding to challenges from athletes like the beach volleyball player Natalie Cook,
the pole vaulter Yelena Isinbayeva, the snowboarder Lindsey Jacobellis, the gymnast
Shawn Johnson, the tennis player Rafael Nadal, the swimmer Michael Phelps and the
skier Lindsey Vonn.The challenges are not in Olympic sports. And they are not
intended to encourage participants to take risks or act dangerously.

Rather, the dares are meant to be playful and lighthearted: How many clapping push-
ups can you do in 30 seconds? How long can you balance a stick? In 30 seconds, in
how many languages can you say “Hello?” How many tennis balls can you pick up in
30 seconds?

Rules will be posted on a section of the committee’s Web site

(www.olympic.org/thebestofuschallenge). Prizes will include trips to the 2010 Winter
Games, in Vancouver, British Columbia, and the first Youth Olympic Games, to be held
in Singapore in August 2010.

In keeping with the affinity for technology among the target audience, the campaign
will have a presence in social media like Facebook and Twitter. YouTube will host the
videos for the Olympic Web site, and will have a channel for the challenge.
APPOINTED; ELECTED; Etc.

Ashok Chavan: He has been re-elected as the Chief Minister of Maharashtra.

Bhupinder Singh Hooda: He has been re-elected as the Chief Minister of Haryana.

Dorjee Khandu: He has been elected as the Chief Minister of Arunachal Pradesh.

Sam Pitroda: He has been appointed as the Advisor to Prime Minister Manmohan Singh on
Infrastructure, Innovation and Information. He will have the rank of a Cabinet Minister.

K. Radhakrishnan: He has been appointed as the Chief of Indian Space Research Organisation
(ISRO).

Alok Prasad: Senior diplomat and Indian High Commissioner to Sri Lanka, he has been
appointed as the Deputy National Security Adviser.

Kanuru Sujatha Rao: She has been appointed as the Union Health Secretary in the Central
government.

DISTINGUISHED VISITORS

Stephen Smith: Foreign Minister of Australia.

Cristina Fernandez de Kirchner: President of Argentina.

Michel Sidibe: UNAIDS Executive Director.

Gen. Ken J. Gillespie: Chief of Army of Australia.

DIED

Inderjeet Hassanpuri: The maestro of Punjabi language who weaved words with pastoral
flavour like “Sare pind ch puare paye ...”, “kurti mal mal di”.

EVENTS
OCTOBER
1—China celebrates 60 years of Mao
Zedong declaring the birth of a
Communist People’s Republic of
China.

3—Floods in northern and parts of

coastal Karnataka leave more than
170 people dead. This is the first
time in 60 years that such a deluge
is experienced in Karnataka.

7—More than 800 people are killed

as a powerful earthquake rocks
western Indonesia. Padang, a
coastal city and capital of West
Sumatra province is hit the hardest.

8—Seventeen people are killed in a

blast outside India’s Kabul Embassy.
Three-ring security cordon saves
Indians inside the Embassy.

8—In yet another brazen attack on

the State, Naxalites kill 17
policemen belonging to
Maharashtra’s C-60 anti-Naxal force
on Gadchiroli district.

9—At least 50 people are killed in a

massive car bomb blast in the busy
Khyber Bazar in Peshawar, Pakistan.

10—Taliban terrorists storm

Pakistan Army Headquarters in
Rawalpindi and kill a Brigadier, a Lt
Col and four other army men, as
also take more than 50 people as
hostage.

10—The dramatic 22-hour siege of

the Pakistan Army Headquarters in
Rawalpindi ends after commandos
storm the premises and free 42
hostages from the terrorists.

12— A devastating suicide bomb hits

north-west Pakistan killing 41
people as a bomber, reported to be
aged about 13, flings himself at a
military convoy passing through a
busy market in Shangla, a north-
west district near Swat.

12—Nuclear-capable Prithvi-II
missile test-fired successfully from
the Integrated Test Range at
Chandipur.

12—Forty one people are killed in a

suicide attack in Shangla district in
Pakistan’s Malakand division.

13—Maharahtra, Haryana and

Arunachal Pradesh go to polls to
elect new Legislative Assemblies.
15—Terror strikes in three cities of
Pakistan (suicide blast in Kohat, Car
bomb in Peshawar, attack on
security forces in Lahore) leaves
more than 39 dead.

16—Police station in Peshawar,

Pakistan, is hit by a suicide car
bomb, killing more than 13 people.

18—Pakistani jets and artillery

pound Taliban bases killing 60
militants in the lawless Waziristan
region.

18—Top military brass is among 50

killed in suicide blast in the city of
Pisheen in Iran, near the border
with Pakistan.

20—At least six persons are killed in

twin suicide blasts on the new
campus of Islamabad’s International
Islamic University.

21—Twenty two people are killed as

Goa Sampoornkranti Express rams
stationary Mewar Express train near
Mathura.

23—More than 26 people are killed

in Pakistan as three blasts rock the
country in 24 hours. Among the
places targeted is Pakistan
Aeronautical Complex at Kamra, in
Punjab province.

25—Twin suicide bomb blasts in

Baghdad kill more than 135 people,
delivering a blow to the heart of the
fragile city’s government.

27—Armed cadres of People’s

Committee Against Police Atrocities
(PCPA) as well as Maoists hijack
Bhubaneshwar-New Delhi Rajdhani
Express near Jhargram town. The
train is released after a five-hour
drama.

28—Prime Minister Manmohan Singh

inaugurates Anantnag-Qazigund rail
section in south Kashmir.

28—Car bomb kills 95 people in

Peshawar, Pakistan.

28—Taliban storm UN house in Kabul

and kill 10 persons, including six of
UN staff.

29—A major blaze at Jaipur IOC

depot leaves more than 5 people
killed.

MILESTONES

Meira Kumar: Lok Sabha Speaker, she has been chosen to head Asia-Pacific
Parliamentary panel.

SPORTS NEWS IN BRIEF: OCTOBER 2009

CHESS
Delhi boy Sahaj is India’s youngest IM
Former under-10 world champion Sahaj Grover has become India’s youngest
International Master, winning the final round game against the higher-rated Nicolas
Clery to finish fifth in the International Open Chess meet, held in France. Sahaj played
in a strong field comprising seven Grandmasters and eight International Masters.

Though just 2288 as per ELO ratings of September 2009, Sahaj gained the required
points to scale his rating well past the 2400 mark. The youngster had made his maiden
Grandmaster norm in

CRICKET
Champions Trophy
Australia were crowned the 2009 ICC Champions Trophy winner after Shane Watson’s
unbeaten century guided the defending champions to a six-wicket victory over a
depleted New Zealand in the low-scoring final match played at Centurion, South Africa.

Champions League
New South Wales Blues from Australia, already the most successful domestic outfit in
cricketing history, added another feather in its cap by pulling off a 41-run victory over
Trinidad and Tobago. The final was played at the Rajiv Gandhi International Stadium,
Hyderabad. The Blues clinically hemmed in the West Indians, and in forcing them to hit
out of trouble, ensured they were bundled out for 118 chasing 160. The victory made
the Blues richer by $2.3 million while T&T pocketed $1.5 million.

NKP Salve Challenger Trophy

Munaf Patel and Sudeep Tyagi wreaked havoc with seven scalps between them as
India Red won the Trophy, steamrolling Mahendra Singh Dhoni and his India Blue
teammates by seven wickets in an extremely lop-sided final played at Nagpur.

Irani Trophy, 2009

Rest of India clinched their fourth successive Irani Cup, defeating Mumbai on the basis
of first innings lead, after the fifth and final day of the match was called off due to wet
ground conditions.

ICC Awards
Cricketer of the Year: Mitchell Johnson (Australia).
Test Player of the Year: Gautam Gambhir (India).
One-Day Player of the Year: Mahendra Singh Dhoni (India).
Twenty20 International Performance of the Year: Tillekratne Dilshan (Sri Lanka).

Umpire of the Year: Aleem Dar (Pakistan).

Spirit of Team Award: New Zealand.
Emerging Player of Year: Peter Siddle (Australia).
Associate and Affiliate Player of Year Award: William Porterfield (Ireland).
Women Cricketer of Year: Claire Taylor (England).
The ICC World ODI Team of the Year is (in batting order): Virender Sehwag (Ind),
Chris Gayle (WI), Kevin Pietersen (Eng), Tillakaratne Dilshan (SL), Yuvraj Singh (Ind),
Martin Guptill (NZ), MS Dhoni (Ind, captain, wk), Andrew Flintoff (Eng), Nuwan
Kulasekara (SL), Ajantha Mendis (SL), Umar Gul (Pak). 12th men: Thilan Thushara
(SL).

The ICC World Test Team of the Year: M.S. Dhoni (Ind, captain, WK), Gautam
Gambhir (Ind), Andrew Strauss (Eng), AB de Villiers (SA), Sachin Tendulkar (Ind),
Thilan Samaraweera (SL), Michael Clarke (Aus), Shakib Al Hasan (Ban), Mitchell
Johnson (Aus), Stuart Broad (Eng), Dale Steyn (SA), 12th man: Harbhajan Singh
(Ind).

India-Australia One Day series

Praveen Kumar and Harbhajan Singh’s batting heroics took India agonisingly close to a
sensational win before the hosts slumped to a four-run defeat against Australia in the
first match, played at Vadodra. Chasing 292, India scored 288 for 8 in the allotted 50
overs.

Captain Mahendra Singh Dhoni struck a breathtaking 124 as India put up an all-round
display to crush Australia by 99 runs in the second one-dayer to level the seven-match
series 1-1, at Nagpur. Dhoni smashed a 107-ball 124 to guide India to a record 354 for
seven, the highest against Australia.

Yuvraj Singh and captain Mahendra Singh Dhoni dealt the Australian bowling attack
with a mixture of caution and aggression to power India to a six-wicket victory to go
2-1 up in series at the Ferozeshah Kotla, New Delhi.
GAMES
Commonwealth Games, 2010
The Queen's Baton Relay, one of the traditions of the Commonwealth Games, will
travel 1,70,000 km and pass through 70 Commonwealth nations before reaching India
for the Games starting on October 3, 2010.

It will take the Queen's Baton 240 days to complete the epic journey to all of the other
70 nations. On its 100-day tour in India, the baton will visit all the capital cities in
India's 28 States and seven Union Territories and many other cities along the way,
covering well over 20,000 km.

On arrival at the opening ceremony, the Baton will have travelled in excess of 190,000
km over a 340-day period. This will make the Queen's Baton Relay one of the longest
relays in the history of the Commonwealth Games.

The Baton's run in India for the 2010 Delhi Games will be twice as long as the
Manchester and Melbourne relays, which lasted for 50 days each.

Queen's Baton Relays have been the curtain raiser to every game since Cardiff, Wales,
in 1958. The Queen's Baton for 2010 Delhi Games contains Queen Elizabeth II's
'message to the athletes.'

President Pratibha Patil joined Britain's Queen Elizabeth II to launch 2010

Commonwealth Games baton relay at a gala Indian ceremony in Buckingham Palace.
The 51-year-old tradition took place on the last day of Patil's three-day State visit to
Britain, with the Queen formally bidding farewell to Patil at the Palace's Grand
Entrance.

The Queen’s Baton for the 2010 Commonwealth Games is a delicate mix of aesthetics
and technology with an in-built location tracking system and a camera capable of
sending images to the Games website.

Built with Aluminium and Gold, this piece of art has Queen Elizabeth’s message
engraved on a miniature 18-carat gold leaf that is symbolic of the ancient Indian palm
leaf ‘patras’, using laser technology. Designed by Michael Foley of Foley design, along
with Titan Industries and Bharat Electronics, it has an embedded system to receive
SMSes sent by enthusiasts from across the world. These SMSes can be viewed when
baton is docked on its special stands or on the website of the Commonwealth Games.

GOLF
Singapore Open Amateur Championship
Rashid Khan, India’s top-ranked amateur, walked away with the title. He shot a last
round of two-under 70 to take the title ahead of overnight leader Thai Vasin
Sripattranusorn and Singapore’s Jerome Ng.

Jeev becomes first Indian to play in World Match-play

Jeev Milkha Singh has added yet another feather to his well-adorned cap. The Indian
golf pro has become the first Indian to tee up at the 16-man Volvo World Match-play
Championships in Casares (Spain). The Championship was held in Spain for the first
time in its history, moving from Wentworth Club to the magnificent 7,439-yard course
at Finca Cortesin. The total prize money for the event was $ 3,250,000.

President’s Cup
Tiger Woods delivered the clinching point as the United States won the eighth
Presidents Cup match play golf tournament.

Hero Honda Indian Open

C. Muniyappa’s dream became a reality when he triumphed in the $1.25million Hero
Honda Indian Open after beating Lee Sung on the first extra hole. The result saw him
lead from 97th position on the Order of Merit to sixth.

HOCKEY
Canada-India series
India rounded off their impressive tour of Canada with a 3-2 victory over the home
side in their final game to win the seven-match hockey Test series 6-0, at Tamanawis
Park.

MOTOR SPORTS
Raid de Himalaya
Army’s Amarinder Singh Brar won his maiden title in X-treme four-wheeler category
while Ashish Saurabh Maudgil grabbed his fourth crown in two-wheeler event in the
11th edition of the Raid de Himalaya rally.

Army also won the Team Trophy for their stupendous performance in the six-leg Maruti
Suzuki rally which covered more than 2000 kms and is touted as the longest and
toughest motorsport event in the country.

In the adventure trial category, the team of Prasad and Pradeep won in the Sports
Utility Vehicle (SUV) category in a Mahindra Scorpio, while Dharampal Jangra and Hari
won the car category. The all-women team of Suchi Thakur and Molona (of W+K
racing team) were awarded the Coup De Damsel Trophy.

SHOOTING
Asian Clay Shooting championship
World champion Manavjit Singh Sandhu shone at the 2009 Asian clay shooting
championship. He bagged the gold medal in the trap event in Almaty, Kzakhstan. He
shot 121/125 in the qualification round and in the finals he came up with a score of
19/25 to claim the top position.

Mansher Singh won the bronze in the event with a score of 113+21. The team
consisting of Manavjit (121), Mansher (113) and Anwer Sultan (109) took the silver
with a total score of 343/375. The team gold was won by Kuwait with a score of 346.

Indian shooters finished the event with four gold medals, two silver and a bronze.
Three gold were won in individual category by Ronjon Sodhi (double trap), Sangram
Dahiya (double trap junior) besides Manavjit.

WEIGHTLIFTING
Commonwealth Championships
Competing in the backdrop of a series of dope flunks, Indian weightlifters began their
Commonwealth Senior and Junior Championship campaign in Penang, Malaysia, with a
bang by winning six gold and four silver medals.

Out of the six gold, three were won by the senior lifters while the remaining were
pocketed by the juniors.
 Indians won both gold and silver in senior men's 56 kg and 62 kg. In 56 kg, V.S. Rao
clinched the yellow metal while V. Vinoth Kumar came second.

In senior men's 62 kg, Rustam Sarang won gold while Omkar Otari pocketed the
silver.

In senior women's 48 kg, Soniya Chanu won gold. Bangaru Usha bagged gold in junior
women's 48 kg, while compatriot Deeksha Gaikwad won silver in the same event.

In junior men's 56 kg, Sukhen Dey, who created history by becoming the first Indian
male lifter to win a medal at the global level by winning bronze in World Junior
Championships in Romania, bagged the gold, while Swapnil Ghagare won the silver.

K. Ramesh Kumar finished first in junior men's 62 kg to complete the tally of six gold
and four silver for Indians.

November 2009 EVENTS

EVENTS
NOVEMBER
1—Afghanistan’s Presidential challenger Abdullah Abdullah withdraws from the run-off
elections as his demands for measures to prevent fraud were rejected.

2—A Taliban suicide bomber blows himself in Rawalpindi, Pakistan’s commercial hub close to
the army headquarters, killing more than 34 people.

2—Afghanistan’s election commission proclaims Hamid Karzai as the President of the country as
the run-off elections is scrapped following Abdullah Abdullah pulling out of the elections.

9—Thirteen MLAs of Raj Thackeray’s Maharashtra Navnirman Sena (MNS) assault Samajwadi
Party (SP) MLA Abu Azmi inside the Maharashtra Legislative Assembly for taking oath in Hindi.
The Speaker suspends four MLAs for four years.

10—A suicide car bomb attack in a busy market near Peshawar, Pakistan kills 32 persons.

13—Suicide bombers strike Pakistan’s ISI operational headquarters in Peshawar. 12 people are
killed in the attack.

14—Eleven coaches of the Delhi-bound Mandore Express derail near Jaipur killing six
passengers.

19—At least 19 persons are killed outside the district courts in Peshawar as a suicide bomber
blows himself up while being frisked at the entrance gate.
22— At least seven persons are killed and over 60 injured in twin blasts that rock Nalbari town
of Lower Assam’s Nalbari district. ULFA is suspected to be behind the blasts.

22—More than 90 people die in a massive gas explosion in China’s deadliest coal mine disaster
in two years, at the Xinxing Coal mine.

25—President Pratibha Patil creates history by becoming the first woman President to fly in a
fighter jet, the Sukhoi-30MKI of the Indian Air Force.

25—Defying boycott call by Maoists, 52% voters exercise their franchise in the first phase of
Jharkhand Assembly elections.

28—President of Pakistan Asif Zardari relinquishes command of Pakistan’s nuclear arsenal to

the Prime Minister of Pakistan.
APPOINTED; ELECTED; Etc.

Hamid Karzai: He has been re-elected as the President of Afghanistan.

Herman Van Rompuy: Prime Minister of Belgium, he has been appointed as the first President
of European union (EU).

J. B. Patnaik: Former Odissa (Orissa) Chief Minister, he has been appointed as the Governor of
Assam.

D.Y. Patil: Noted educationalist from Maharashtra, he has been appointed as the Governor of
Tripura.

Kamla Beniwal: She has been appointed as the Governor of Gujarat.

Subir Gokarn: Chief economist (Asia-Pacific) of global rating agency Standard & Poor, he has
been appointed as the Deputy Governor of Reserve Bank of India (RBI).

RESIGNED

Anil Kakodar: Chairman of the Atomic Energy Commission (AEC) of India.

DISTINGUISHED VISITORS

Jose Manuel Barraso: President of European Commission.

Kevin Rudd: Prime Minister of Australia.

Stephen Harper: Prime Minister of Canada.

Fredrik Reinfeldt: Prime Minister of Sweden.

Manocheher Mottaki: Foreign Minister of Iran.

DIED

Prabhash Joshi: Noted Hindi journalist. He founded the newspaper Jansatta and later on wrote
a column Kaagad Kare for years.
1. Who becomes the first Indian to make a fifty while batting at No.9 against Australia?
Praveenkumar. He became the first batsman from India to post a fifty on Indian soil while
batting at No.9 position

2. The Income Tax department recently conducted nationwide raids at 70 addresses

linked to former Jharkhand Chief Minister who has possessing assets worth Rs 2000
crores. Name of that former Jharkhand CM who is now a MP?
Madhu Koda

3. Chief Minister V. S. Achuthanandan of Kerala laid foundation for States first Border
Security Force (BSF) unit in which place?
Kainur village in Thrissur district.

4. A modern space science complex of international standards is to be set up by Indian

Space Research Organisation (ISRO) in South India. Where is it?
Ponmudi hills in Thiruvananthapuram District, Kerala

5. Who has been inducted as SP of the prestigious National Investigation Agency (NIA)?
T.K. Rajmohan

6. Who won the Man of the Match award in the third One Day International Cricket
between India and Australia held in Delhi?
Yuvraj Singh. India beat Aussies by 6 wickets

7. Who has claimed the top slot as the highest tax payer in the country for the current
fiscal?
Lalit Modi, the Indian Premier League chief.

8. China's keystone space scientist, widely acclaimed as the country's "father of space
technology" and "king of rocketry", died of illness recently at the age of 98?
Tsien Hsue-shen.
He has also gone by the name of Qian Xuesen

9. The massive fire at which depot of Indian Oil Corporation destroys Rs 1000 crore,
ruins several lives?
Jaipur's Indian Oil Corporation depot
10. Which documentaries have been recently nominated for the prestigious 5th CMS
VATAVARAN, environment and wildlife film festival, held at the India Habitat Centre,
New Delhi?
‘My Purple Sunbird’ directed by Sunil Raj
‘Kaanam - Life Story of a Midland Hill’ by Babu Kambrath

11. Indian who was elected as member of the Italian Democratic Party National
assembly?
Sibi Kumaramangalam

12. Who is appointed as the chief justice of Himachal Pradesh?

Justice Kurian Joseph. He is the senior most judge of the Kerala High Court

13. Who has been appointed first Goodwill Ambassador of the ‘Smile Train,’ an
international charity that provides free cleft lip and palate surgery to children in need?
Aishwarya Rai Bachan

14. The Supreme Court Collegium headed by Chief Justice of India KG Balakrishnan has
dropped the name of Karnataka High Court Justice from the list of those recommended
for elevation to the Supreme Court. Name of that justice?
Justice PD Dinakaran

15. Name of the typhoon, the fourth in a month, which has hit Manila in the Philippines
bringing with it heavy rain, flooding and a tropical storm?
Typhoon Mirinae.
Typhoon Ketsana was the first to hit this region at the end of September. About 420
people died in that storm and tens of thousands of people are still living in shelters after
their homes washed away. This was followed up by Typhoon Parma that killed over 430
people and destroyed 55,000 houses. Typhoon Lupit was the third typhoon to hit the area
last week.

16. Who emerged as the winner of Airtel Delhi Half Marathon in the male category?
Deriba Merga of Ethiopia.
Marry Kitney succeeded in winning the title in women category. Around 30,000 people
participated in the Airtel Delhi half Marathon 2009.

17.

17. Name the Jammu Kashmir 'braveheart' who killed a Lashkar-e-Taiba (LeT) terrorist
has been appointed as the Special Police Officer (SPO) in the Jammu Kashmir police
force recently.
Rukhsana Kausar.
Rukhsana, who hails from Kalsi village in upper Shahdhara area of Rajouri district, 180
km north of Jammu, had grappled with LeT terrorists who entered her home, grabbed an
AK-47 from one and shot him dead. The terrorist killed was Abu Osama, LeT
commander.

18. Kerala High Court Judge who resigned from his post on 2nd November 2009 citing
personal reasons?
Justice V Giri.
He was the first permanent judge of Kerala High court who resigned from his post.
Justice K P Dandapani is the only judge of the Kerala High Court to have resigned before
him. But he was not permanent at that time.

19. Which public sector company has won "SCOPE AWARD" for Excellence and
Outstanding contribution to Public Sector Management - Special Institutional
(Turnaround) Category 2007-08?
Heavy Engineering Corporation Ltd, Ranchi

20. Who won the Man of the Match award in the fourth One Day international Cricket
match between India and Australia held in Mohali?
Shane Watson. He scored 49 runs and took 3 wickets.
Australia won the match by 24 runs.

21. American company which is a major lender to hundreds of thousands of small and
medium-sized businesses, filed for bankruptcy recently, as the global financial crisis left
it unable to fund itself and the recession clobbered its loans?
CIT Group Inc
Bankruptcy is also a blow for the U.S. government, which invested $2.33 billion in CIT
in December through the Troubled Asset Relief Program and will likely lose most of it.

22. Who won the WTA championship-2009 held in Doha?

Serena Williams. She defeated her sister and defending champion Venus 6-2 7-6(4) in the
WTA Championships final in Doha.

23. Who is the winner of Abu Dhabi Grand Prix 2009 Race?
Sebastian Vettel
24. Who is the Chairman of the International Jury of 33rd International Film Festival held
at Cairo?
Adoor Gopalakrishnan.

25. Which Indian film won the Silver Award at the just concluded 33rd Cairo
International Film Festival?
“Mudhal Mudhal Mudhal Varai” (Tamil Film) directed by Krishnan Seshadri Gomatam

26. The legendary French anthropologist and philosopher who passed away recently in
his Paris home at the age of 100.
Claude Levi-Strauss. One of his more influential fields of study involved the observation
of tribes in Brazil and North America.

27. Who has been conferred the Fellow Membership of the Kolkata-based National
Institute of Personnel Management?

Dr George Sleeba, Chairman and Managing Director of FACT, Kerala

28. Who was re-elected president of the United Arab Emirates for a second five-year
term?
Sheikh Khalifa bin Zayed al-Nahayan

29. Who won the Man of the Series Award in the ODI Cricket Series between
Bangladesh and Zimbabwe?
Abdur Razzak (Bangladesh). Bangladesh won the 5 match series 4-1

30. Which country’s central bank bought 200 metric tons of gold from the International
Monetary Fund last month, in the first major move by a major central bank to diversify
its foreign-exchange reserves?
India.
Reserve Bank of India bought 200 metric tons of gold to manage its foreign-exchange
reserves.

31. Which team was banned by BCCI from this year's Ranji Trophy cricket Season for
skipping a match against Jammu and Kashmir in Srinagar citing security reasons?
Services.
The Services cricket team is a domestic cricket team in the Elite Group of the Ranji
Trophy, the main domestic competition in India.

32. Which country made the fifth lowest total in one-day cricket by making only 44 runs
to their account?
Zimbabwe.
Bangladesh bowlers demolished Zimbabwe for 44 runs in the fourth ODI match, the fifth
lowest total in one-dayers. Nazmul Hossain, who started the slide with his 2 wickets for
10 runs and took a brilliant catch, was adjudged the man of the match
33. Who has won the World Junior girls chess championship at Puerto Madryn in
Argentina on November 3, 2009?
Soumya Swaminathan. She is from Pune, India.

34. Who won the Man of the Match award in the first ODI of the Cool & Cool Cup at
Abu Dhabi between New Zealand and Pakistan?
Shahid Afridi. He won this award for his 70runs and 2 wickets for 46.Pakistan won the
match by a whooping margin of 138 runs.

35. The tropical Storm which slammed Vietnam's central coast on November-2, 2009,
unleashing heavy rains and winds and forcing more than 80,000 people to evacuate.
Mirinae. The death toll from Tropical Storm Mirinae in central Vietnam has risen to 109.

36. Which African country establishes satellite medical link with India recently?
Sierra Leone. Officially the Republic of Sierra Leone, is a country in West Africa has
launched a satellite link-up known as telemedicine so that doctors in this country can seek
advice from their colleagues in India.

37. A British-German scientist’s team recently has identified the old ancestor of the
world’s most infamous predator, Tyrannosaurus rex which is a dinosaur. Name of that
165-million-year-old dinosaur lived during the middle Jurassic Period?
Proceratosaurus, the two-legged meat-eater would have measured about 3m long and
weighed up to 60kg.

38. Which state won Indira Priyadarshini Vriksha Mitra Award-07 for the best
contribution in tree planting activities and Indira Priyadarshini Vriksha Mitra Award-08
for increasing forest & tree cover in the State?
Kerala

39. Twelve-year-old boy who made a World record in inter-school cricket by smacking a
mammoth 439 in the prestigious Harris Shield tournament at the MB Union Cricket Club
grounds, Cross Maidan?
Sarfaraz Khan..
Harris Shield is the tournament in which Sachin Tendulkar and Vinod Kambli piled up a
world record 664 runs for the third wicket in February 1988, helping their school,
Shardashram Vidyamandir, to score 748 for 2 in 122 overs against St Xavier's School at
Azad Maidan.

40. Who won the Man of the Match award in the fifth ODI cricket match between India
and Australia held on 5th November, 2009 at Uppal, Hyderabad?
Sachin Tendulkar. He scored 175 runs and that was his 45 th ODI century. Australia won
the match by 3 runs.

41. Fugitive former Thailand Prime minister who was appointed as economic advisor to
the Cambodian government, in a move that adds to tensions between the countries?
Thaksin Shinawatra
42. Name the U.S. Army psychiatrist who has killed 13 people and wounded 30 others in
a bloody rampage at the Fort Hood military base in Texas?
Major Nidal Malik Hasan

43. Eminent public health expert of Kerala who passed away recently at the age of 71?
Dr. C.R. Soman

44. Renowned scientist and former Director of UGC who has been selected for the
prestigious Kalinga Prize 2009.?
Professor Yash Pal. The award is given by UNESCO for popularisation of science.

45. Which country won gold medal in men’s kabbadi, in the third Asian Indoor Games in
Vietnam?
India

46. Who is appointed as the new captain of Kolkatta Knight Rider’s Team for IPL-3?
Saurav Ganguly
Coach: David Whatmore
Wasim Akram selected as mentor for the Kolkata Knight Riders.

47. A never-seen-before Charlie Chaplin film was recently found in a nitrate film tin by a
man who bought it on eBay for £3.20. Name of that previously unseen Charlie Chaplin
movie which could be worth up to £40,000?
‘Charlie Chaplin in Zepped’

48. Which team claims the 2009 AFC Champions League title with a 2-1 victory over Al
Ittihad at the National Stadium in Tokyo?
Pohang Steelers of South Korea. The title was Pohang's third continental triumph
(following Asian Club Championship wins in 1997 and 1998) and means they become
the most successful team in Asian football history.

49. Coach of triple Olympic and World Championship gold medalist Usain Bolt and
president of the Racers Track Club, who has resigned after 22 years as head of the
Jamaican national track and field team?

Glen Mills

50. Who won the Man of the Match award in the second ODI between New Zealand and
Pakistan held in Abudabi?
Brendan McCullum. He scored 131 runs (His second ODI century) and New Zealand
beat Pakistan by 64 runs.

51. Name of the online reservation system of Kerala Road Transport Corporation
inaugurated by Chief Minister V.S. Achuthanandan recently?
Sarathy

52. Who won the Man of the series award of recently concluded ODI series between
India and Australia?
Shane Watson. Australia won the seven match series by 4-2. The last match abandoned
due to rain.
Man of the Match of Sixth ODI: - Doug Bollinger. Australia won that match in Guwahati

53. Which country won the Asia Cup hockey championship-2009 for women held in
Bangkok?
China.
China inflicted a 5-3 defeat on India to regain the trophy. China had won the trophy last
in 1989 at Hong Kong.

54. Which country won the Fed Cup women's tennis title with a comfortable 4-0 win over
the United States in Reggio Calabria.?
Italy

55. India's National Academy of Letters, Sahitya Akademi, recently signed a MoU
(Memorandum of Understanding) with a digital technology leader to institute the 'Tagore
Literature Awards ' named after the legendary Shri Rabindranath Tagore. Name that
electronics giant?
Samsung. The award will recognize the best of literary contributions by writers in 8
Indian languages – Bengali, Gujarati, Hindi, Kannada, Kashmiri, Punjabi, Telugu and
Bodo

56. Who is re-elected unopposed as the president of Asian Athletic Association (AAA) in
Guangzhou, China, to serve his third consecutive term at the office?
Suresh Kalmadi, Indian Olympic Association chief. He was elected for another four-year
term (2009-13)

57. Who won the Charlottesville Challenger ATP (Association of Tennis Professionals)
Challenger tournament?
Kevin Kim (U.S.A). He beat Somdev Devvarman in the final.

58. Who is the new Director of ISRO Inertial Systems Unit (IISU), Thiruvananthapuram,
Kerala?
T.R. Chidambaram

59. Who won the Swiss Indoors Tennis title beating Roger Federer in the final?

Novak Djokovic. He beat Roger Federer in his own backyard to win the Swiss Indoors
final 6-4 4-6 6-2 in Basle.
60. Which state won the South Zone inter-state badminton championship held in Andra
Pradesh?
Andra Pradesh
Guru Sai Dutt (Andra Pradesh) beat Ram C. Vijay (Kerala) in the boys’ final
Sikki Reddy, Girl’s Champion

61. Who was chosen for the C.K. Nayudu Lifetime Achievement Award 2008-2009 by
BCCI (Board of Control of Cricket in India)?
Mohinder Amarnath

62. 124 people have been killed by floods and mudslides in El Salvador after the Central
American nation was battered by a Hurricane. Name of that storm?
Hurricane Ida

63. Who won the Man of the Match award in the first ODI between South Africa and
Zimbabwe held at the Willowmoore Park, Benoni, South Africa, 8th of November 2009?
Tatenda Taibu. He remains unbeaten on 103 runs. South Africa won the match by 45 runs

64. On the first day of the new Maharashtra assembly, Maharashtra Navnirman Sena
(MNS) legislators roughed up a member of Samajwadi Party for taking the oath of office
in Hindi. Name of that SP member?
Abu Asim Azmi. Maharashtra Legislative Assembly suspended four Maharashtra
Navnirman Sena members for four years on charges of assaulting Samajwadi Party MLA
Abu Asim Azmi. The suspended MLA’s are Shishir Shinde, Ram Kadam, Ramesh
Wanzale and Vasant Gite

65. First Muslim lady who will serve as minister in the Maharashtra government?
Fauzia Khan

66. Man of the Match of third ODI between Pakistan and New Zealand held in Abudabi
on November 9, 2009?
Mohammad Aamer (Pakistan). He made 73 runs and took two wickets.
New Zealand won the match by 7 runs. They also won the 3-match series 2-1.

67. Who won India's first medal in the 18th Asian Athletics Championships held in
Guangzhou?
Kavita Raut. She won a bronze in women's 500m race on the opening day of the 18th
Asian Athletics Championship

68. Which bank has won the 'Great Mind Challenge' Award for implementing the most
innovative solution for business?
Federal Bank. Federal Bank is the first bank in the country to receive this award and the
award has been introduced by IBM for the first time in India for business development
initiatives.
69. India’s first Aerospace SEZ (Special Economic Zone) launched in?
Belgaum, Karnataka. Aerospace and engineering major QuEST Global launched the
country's first aerospace Special Economic Zone for development and manufacture of
aerospace precision engineering products.

70. Which documentary has been selected for the Recycling Fond award at the 36th
International Festival of Sustainable Development Films-ekotopfilm 2009?
‘Farming our Future’ Direction: Venu Nair

71. Who has been appointed Pakistan captain for the Test tour of New Zealand?
Mohammad Yousuf
Vice Captain: Kamran Akmal

72. Who won India's first Gold medal in the 18th Asian Athletics Championships held in
Guangzhou?
Om Prakash Singh. He won the men's shot put gold for India.

73. Goalkeeper of Germany who committed suicide by stepping in front of a train in

Hanover?
Robert Enke

74. The sniper whose murderous shooting spree in the fall of 2002 left at least 10 dead in
Washington, was executed by lethal injection at a Virginia state prison?
John Allen Muhammad

75. Who is appointed as the head of United States Agency for International
Development?
Rajiv Shaw

76. Who has been chosen for this year’s K.R. Narayanan Award?
N.Ram, Editor-in-Chief of Hindu.
He has won this award for his outstanding contribution to journalism in India. Instituted
by the K.R. Narayanan Foundation in memory of the late President, the award is to
honour individuals who have excelled in various fields.

77. Who has been selected for the K. R. Narayanan Pravasi Ratna award?
M. A. Yusuf Ali, UAE-based industrialist won this award for his contribution to the
cause of NRIs.
K. R. Narayanan Kala Puraskaram award went to Malayalam film ‘Kerala Varma
Pazhassi Raja’

78. Most-wanted cocaine kingpin of Mexico who had been ranked by Forbes magazine as
one of the most powerful people in the world.
Joaquin Guzman. He ranked 41 on Forbes' 'powerful' list.
79. A Michael Jackson portrait has sold for $812,000 (£507,500) at an auction in Los
Angeles. The artist of that portrait is?
Andy Warhol

80. Sri Lanka's armed forces chief who has resigned from his post just months after
helping secure the defeat of the Tamil Tiger rebels?
Gen Sarath Fonseka

81. Who has been selected for Ezhuthachan puraskaram-2009, highest literary honour of
Kerala State?
Sugathakumari. She is a renowned poet and social activist. She has won this award for
her valuable contribution to Malayalam poetry.

82. Who has been named captain of the Indian hockey team for the FIH Men's
Champions Challenge tournament in Salta, Argentina?
Rajpal Singh. The tournament will take place from December 6 to 13.

83. The Video game collected $550 million in 5 days, which has beaten largest
worldwide box-office opening, held by "Harry Potter and the Half-Blood Prince," which
tallied $394 million over its first five days?
"Call of Duty: Modern Warfare 2"

84. Who was sworn as the first Punjabi-American (Sikh) mayor of Yuba City in U.S.A?
Kashmir Singh Gill
Yuba City is known as the first Punjabi village in U.S.A

85. Which country leads medals in the 18th Asian Athletics Championships held in
Guangzhou, China in 2009?
China (47 Medals, 18 Gold, 19 Silver, 10 Bronze)
India occupies the sixth position(12 Medals, 1 gold, 4 Silver, 7 bronze).
47 Nations participated in the event.

86. The country which have reached the World Cup finals for the second time in their
history with victory over Bahrain in their qualifying play-off?
New Zealand

87. Who is the Man of the series of the 20-20 series between Pakistan and New Zealand
held in Dubai?
Shahid Afridi. Pakistan won the series 2-0.

88. Who has clinched the Australian Masters Golf Title held in Melbourne?
Tiger Woods
89. Which country chosen as host for the Asia-Pacific Economic Cooperation (APEC)
meetings held from February to November 2009?
Singapore

90. The 2011 meeting of the Asia-Pacific Economic Cooperation (APEC) will be held in?
Honolulu

91. National junior athletics championships from November 20 to 24 held in?

Warangal, Andrapradesh

92. What is the highest score of India in a test cricket match on a single day?
443/1 in the second day of the third test match against Sri Lanka in Mumbai.

93. Which country won FIFA Under-17 World Cup?

Switzerland. They defeated hosts and defending champions Nigeria 1-0 in the final.

94. Who became the second Indian to complete 11,000 Test runs in the recent test match
against Sri Lanka?
Rahul Dravid.

95. Who is appointed as the chief of Defence Staff of Sri Lanka?

Roshan Gunathilleke

96. Who is appointed as Australia's batting coach for the upcoming cricket season?
Justin Langer

97. President of India, Pratibha Patil recently nominated five noted personalities to Rajya
Sabha. Who are they?
1.HK Dua, Eminent journalist.
2.AK Ganguly, Former Chairman of Hindustan Lever Limited.These two will replace
Film Actor Hema Malini and Journalist Chandan Mitra, whose term has come to an end.
3. Javed Akhtar, Lyricist and poet
4. Prof CNR Rao (Chairman of the scientific advisory council to the PM)
5. G Madhavan Nair, Former ISRO chairman.

98. Which Consumer electronics and durables major recently announced the inauguration
of its split air-conditioner manufacturing line at its Sriperumbudur facility?
Samsung.
The AC manufacturing unit in India is the fifth in the world for Samsung.
99. According to the Open Doors 2009 report, which country has sent more than one lakh
students to USA for the academic year 2008-09?
India.
India retained its position as the top place of origin for international students in the US.
China remained in second place.

100. Which District panchayats of Kerala have won the ‘Nirmal Grama Puraskaram’
instituted by the Union government for their efforts in maintaining high level of public
hygiene?
Alappuzha and Pathnamthitta

101. Who becomes first Sri Lankan player to score a century in India since 1997?
Tilakaratne Dilshan

102. Ace straw picture craftsman from India who has been invited to take part in the five
day Mode Heim Handwerk fair at Munich from November 25?
Kiran Rajendran. This is the first time that straw pictures from India will get the
opportunity to be displayed in an international gallery.

103. The 11th International Meeting of the Communist and Workers Parties jointly
hosted by the Communist Party of India-Marxist (CPI-M) and the Communist Party of
India (CPI) took place in?
New Delhi.
Communist leaders from around the world met there on November 20-22, 2009 to discuss
how to 'intensify popular struggles'

104. One of Iraq's vice presidents who vetoed the country's new election law recently,
throwing into fresh doubt the feasibility of holding crucial national balloting in January ?
Tariq Hashimi. Iraq has two vice Presidents: Adil Abd Al-Mahdi and Tariq Hashimi.

105. Sri Lankan player who scored a classy double century in the first test match against
India in Ahmedabad?
Mahela Jayawardhene He scored 275 runs and it was his sixth double century.
He won the Man of the match Award of that match.
106. Who has been declared elected in the presidential elections of Afghanistan, which
was held on 20th August, this year?
Hameed Karzai

107. Who has been chosen for the prestigious Indira Gandhi Prize of 2009 for Peace,
Disarmament and Development?
Sheikh Hasina, Bangladesh Prime Minister.

108. The 32 teams qualified for the 2010 FIFA World Cup Football:
South Africa (Host), Ghana, Ivory Coast, Japan, Australia, South Korea, North Korea,
England, Netherlands, Spain, Serbia, Italy, Denmark, Germany, Brazil, Paraguay, Chile,
United States, Mexico , Switzerland, Slovakia, Argentina, Honduras , New Zealand,
Nigeria, Cameroon, Algeria, Greece, Slovenia, Portugal, France, Uruguay.

109. Who won the first Maliyama Foundation Award?

Irom Sharmila The award will be given to her for her crusade against human rights
violations and for repeal of the Armed Forces (Special Powers) Act, 1958.

110. The 1,500m champion of Beijing Olympics-2008, who has been stripped of his gold
medal after a failed drugs test.
Rashid Ramzi. The Moroccan-born runner who competes internationally for Bahrain was
the only gold medalist from Beijing caught using performance-enhancing drugs

111. Who is the richest man in India with USD 32 billion in net worth followed by steel
tycoon Lakshmi Mittal and Anil Ambani, according to the Forbes annual rich list for the
country?
Mukesh Ambani, Reliance Industries Chairman.

112. Which Indian film has bagged five awards at the South Asian International Film
Festival held in New York?
'Manjaadikkuru'. The Malayalam film bagged five awards including the ones for Best
Film, Best Direction, Best Script, Best Cinematography and Best Debutante Talent. The
film is directed by Anjali Menon

113. Who has chosen as first full-time president of European Union?

Herman Van Rompuy, Belgian Prime Minister

114. The cricketer who has reached the milestone in his career by completing a
phenomenal 30,000 runs in international cricket during the Test against Sri Lanka?
Sachin Tendulkar. He became the first batsman to complete 30,000 international runs
when he scored his 35th run in the second innings against Sri Lanka. He slammed his
43rd Test century in that match.

115. Which country won women's team title in the 19th Asian Table Tennis
Championships held in Lucknow?
China. The beat Singapore 3-1 in the final while host India finished seventh.

116. Who has been named as High Representative (Chief) for Foreign Affairs and
Security Policy of European Union?
Catherine Ashton, Britain

117. Which team won their second successive Russian Premier League title?
Rubin Kazan

118. Two Pakistani men accused of providing logistical support for last year's deadly
terror attacks in Mumbai, India, were arrested in Italy. Name of that terrorists?
Mohammad Yaqub Janjua and Aamer Yaqub Janjua
119. Which state of India won the national Junior Athletics Championship held at
Warangal for the 13th consecutive time?
Kerala.

120. Constitution bench to consider the Mullaperiyar dam dispute between Tamil Nadu
and Kerala has been formed recently. The bench consists of?
The five-judge bench would be presided by Justice DK Jain. Justice Mukundakam
Sharma, RM Lodha, D Sudharshan Reddy and Deepak Varma would be the other
members.

121. Who has been named as the Secretary of the International Monetary Fund by its
Managing Director Dominique Strauss-Kahn?
Siddharth Tiwari, Indian economist.

122. Which is the inaugural film of the 40th edition of the International Film Festival of
India (IFFI) in Panaji, Goa, on Nov 23, 2009?
“Wheat", Chinese historical drama was the inaugural film.

123. Who is the Man of the match of the second ODI between South Africa and England
at Super Sport Park, Centurion on 22-11-2009?
Paul Collingwood. He scored unbeaten 105 after took two wickets and held a superb
catch as England beat South Africa by 7-wickets.

124. Which state crowned champions in the 55th National School Games held in
Amritsar?
Kerala. Kerala won 76 medals, including 28 gold, 28 silver and 19 bronze.
Hosts Punjab came second in the medal tally with 24 gold medals and 10 bronze.

125. A long-running inquiry commissioned by the Indian government to investigate the

destruction of the disputed structure Babri Masjid in Ayodhya in 1992. In November
2009, a day after a newspaper published the allegedly leaked contents of the report, the
report was tabled in the Indian parliament by the Home Minister, P. Chidambaram. Name
of that commission?
Liberhan Commission

126. Who has been crowned Miss Earth 2009 which was held on November 22 at the
Boracay beach resort in Aklan province, central Philippines?
Larissa Ramos, Nineteen-year-old Brazilian beauty.

127. Who is the Brand Ambassador of Kerala Hockey?

Suresh Gopi, Malyalam Superstar.

128. Which athletes were crowned as the Male and Female World Athletes of the Year
2009 by International Athletic Foundation (IAF)?
Usain Bolt, Jamaica
Sanya Richard, USA

129. India’s nuclear-capable intermediate range and surface-to-surface missile which was
test—fired for the first time on 23rd of Novmber-2009?
Agni II

130. Who won the Artist of the Year Award at the 37th American Music Awards
(AMAs) beating out Michael Jackson?
Taylor Swift. She won five awards while Jackson got 4 awards.

131. Who was the oldest person to ever climb Mt Everest?

Min Bahadur Sherchan, 78 years old became the oldest person to conquer the world's
highest peak

132. China executed two people recently for their roles in a tainted milk powder scandal
in which at least six children died and more than 300,000 became sick. Who are they?
Zhang Yujun and Geng Jinping.
Zhang Yujun was executed for endangering public safety and Geng Jinping was executed
for producing and selling toxic food

133. Who has taken over as General Manager, Southern Railway on 21st November
2009?
Shri Deepak Krishan

134. Secretary Ministry of Overseas Indian Affairs who is appointed as Secretary of

Ministry of Shipping?
K Mohandas.

135. SEBI (Stock Exchange Board of India )has served an amended notice to a major
Indian company asking why it shouldn't be barred from accessing the stock markets
under the rules on fraudulent and unfair trade practices and the gains it made of Rs.513
crore not be disgorged. Which is that company?
Reliance Industries (RIL). SEBI has issued an amended notice to Mukesh Ambani-led
RIL on insider trading.

136. Who became the first woman president to fly in a fighter jet, the Sukhoi-30MKI of
the Indian Air Force?
Pratibha Patil, Indian President

137. Prosecutors in the genocide trial of a former Khmer Rouge prison chief demanded a
40-year jail sentence recently for a man they described as responsible for snuffing out
innocent lives and spreading terror across Cambodia. Name of that Jail Chief?
Kaing Guek Eav. He is also known as Duch (pronounced DOIK) oversaw the torture and
execution of about 16,000 men, women and children during the Khmer Rouge's 1975-79
rule. Some 1.7 million Cambodians died of torture, execution, disease and starvation
under the Khmer Rouge.

The Khmer Rouge was the name given to the followers of the Communist Party of
Kampuchea, the totalitarian ruling party in Cambodia from 1975 to 1979, led by Pol Pot,
Ieng Sary, Son Sen and Khieu Samphan.

138. Iran's best-selling newspaper, which has been banned for publishing a picture of a
temple belonging to the outlawed Bahai sect.?
Hamshahri.

139. Who became the fourth highest run getter in Test cricket, surpassing former
Australian captain, Allan Border?
Rahul Dravid. Border took 156 Tests to reach 11,174 Test runs at an average of 50.56.
Dravid reached 11182 runs in 136 Tests at an average of 53.50,
Tendulkar - 161 matches - 12917 runs - average of 54.76
Lara -131 matches - 11953 runs - average of 52.88
Ponting - 136 matches - 11345 runs - average of 55.88

140. Who has been appointed as chairman of Atomic Energy Commission of India?
Srikumar Banerjee. He is a leading expert in Materials and Technology in the country
and director of Bhabha Atomic Research Centre (BARC)

141. The son of a Philippines clan boss who was charged with murder recently after the
massacre of at least 57 people in last week of November-2009?
Andal Ampatuan Jr, a local mayor in Maguindanao province.

142. The United States of America has reached an agreement to station an American
antimissile defense system on a country in Central Europe recently. Which is that
country?
Poland.
United States and Poland have agreed terms for stationing US troops in Poland so that the
deployment of US Patriot missiles can start next year.

143. The search engine which apologized recently for results of image search of 'Michelle
Obama’, first lady of U.S.?
Google.
In November, when someone typed "Michelle Obama" in the popular search engine
Google, one of the first images that came up was a picture of the American first lady
altered to resemble a monkey.

144. Pakistan player who hits century on debut in the first test match against New
Zealand in Dunedin?
Umar Akmal, a blistering 129 (160b, 21x4, 2x6) on debut. He won the Man of the Match
award, but Pakistan lost that match by 32 runs.
145. The French Parliament has unanimously adopted the civil nuclear agreement with an
Asian Country. Which is that country?
India.

146. Which car has been ranked No. 1 in the mid-size entry segment (228 PP/100),
according to the 2009 J.D. Power Asia Pacific India Vehicle Dependability Study
released recently?
Ford Ikon

147. Who was awarded the man of the match in the second test match between India and
Sri Lanka played at Kanpur?
Sreesanth. He was declared Man of the Match for his 6 wicket haul.
India beat Sri Lanka by an innings and 144 runs in that match and it was India's 100th
test win in all, their first being way back in 1952 against England.

148. Former Indian Volleyball team captain who has been selected for the 21st Jimmy
George Foundation award, 2009, for his contributions to sports?
Tom Joseph

149. Iranian authorities have confiscated the Nobel Peace Prize medal awarded to Iranian
lawyer-activist in 2003 for her work as a lawyer and human rights activist. Name of that
Nobel laureate?
Shirin Ebadi

150. The Commonwealth Heads of Government Meeting (CHOGM), leaders from 51

Commonwealth countries began a three-day summit started on November 27, 2009, held
in?
Port of Spain

151. Which country n launched its fifth spy satellite on 28th November 2009 in a bid to
boost its ability to independently gather intelligence?
China

152. Which company has been awarded the 2009 CII (Confederation of Indian Industry)
National Award for Energy Efficient Unit?
Piramal Healthcare's Digwal, India, manufacturing division.

153. Who was awarded the man of the match in the first test match between Australia and
West Indies played at Brisbane?
Ben Hilfenhaus. This Australian bowler took 3 wickets in the first innings and claimed
two in the second innings. Australia beat West Indies by an innings and 65 runs.

154. Who becomes the youngest West Indian to score a Test century on debut?
Adrian Barath At just 19 years and 228 days, Barath became the seventh youngest
batsman in Test history to post a century on debut. He had scored 104 of West Indies'
total of 154 in the second innings.

155. Who was adjudged Man of the Match in the third ODI between South Africa and
England played at Cape Town on November 27, 2009?
AB de Villiers (South Africa). He scored 121 off 85 balls and South Africa won the
match by 112 runs.

156. Which Indian city will be the venue of the 97th Indian Science Congress?
Thiruvananthapuram, Kerala.
96th Indian Science Congress held at NEHU in Shillong, Meghalaya.
157. In November 2009, more than 50 employees of a nuclear plant of India were
affected due to high radiation levels. A water cooler for supplying water for the
employees was contaminated with tritiated water. Where is that nuclear plant?
Kaiga nuclear power station situated at Kaiga in Uttar Kannada district in Karnataka,
India.

158. The African nation which has been admitted into the Commonwealth of Nations,
becoming the 54th member of the organization of mostly former British colonies?
Rwanda

159. Who was adjudged Man of the Match in the fourth ODI between South Africa and
England played at Port Elizabeth on November 29, 2009?
James Anderson (England). He took five wickets and England won the match by 7
wickets.

160. Which country decided to sign civil nuclear deal with India recently?
Canada. India and Canada have agreed on a civil nuclear deal that will enable New Delhi
to access Canadian nuclear technology and uranium after a gap of 34 years. The deal is
likely to be signed when Manmohan Singh goes to Canada to attend the G20 summit in
June, 2010.

161. Chief of Telangana Rashtra Samiti (TRS) who was sent to jail for 14 days after his
arrest in Andhra Pradesh's Karimnagar district before he could begin his "fast unto death"
for a separate Telangana state?
K Chandrasekhara Rao.

162. Whom will be the new partner of Mahesh Bhupathi in doubles for the next tennis
season?

Max Mirnyi of Belarus. Bhupathi and Mirnyi had enjoyed a successful partnership in the
past when the two won the 2002 US Open and also reached the Wimbledon final in 2003.
Mark Knowles was his earlier partner which ended in the semifinals of the ATP World
Tour Finals.
 MILESTONES
Dr Rajiv Shah: A young Indian-American doctor, he has been nominated by US President Obama as
administrator of United States Agency for International Development (USAID).

Satinder Sharma: A Deputy Manager in State Bank of India, Chandigarh, he has become the first Indian
hockey umpire to get Golden Whistle Award from the International Hockey Federation. Golden Whistle is
given to only those umpires who have officiated in 100 or more international matches.

Pratibha Patil: President of India, she has become the world’s first woman President to fly in a fighter
aircraft. She flew in the Sukhoi-30 MKI from the Indian air Force’s Lohegaon air base in Pune.

Lata Mangeshkar: Noted singer, she has been conferred the “Legion d’Honneur”, the French government’s
highest award.

November CURRENT AFFAIRS 2009

NATIONAL

The Reserve Bank of India’s gold stock has shot up by more than 55 per cent with the purchase of 200
tonnes of IMF gold at an estimated cost of $6.7 billion. RBI, which pledged gold during 1991 crisis with
the Bank of England to raise resources to meet external obligations, said it has purchased 200 tonnes of
gold from International Monetary Fund (IMF).

The minimum support price (MSP) of wheat has been increased by the Union government by Rs 20 a
quintal to Rs 1,100 a quintal. The MSP for barley has been fixed at Rs 750 per quintal and chana at Rs
1,760 per quintal.

Sachin Tendulkar holds the world record for most number of fifties in One day matches (91). He also
holds the world record for most tons (9) in a calendar year (1998), as also world record for most runs in
a calendar year (1894 in 34 matches).

National Cancer Awareness day is observed on November 7.

“Sesame Street” is a landmark children’s TV show that for last 40 years has taught generations
of children to count, countless parents how to teach, and is seen in 125 countries.

Phyan was the name of the cyclone that hit Arabian Sea off the coast of Maharashtra-South
Gujarat.

July 18 has been declared as Nelson Mandela International Day by the Un General Assembly to
mark the South African anti-apartheid leader’s contribution to peace.

Caccine Vial Monitor (VVM) is a measurement of heat exposure to vaccine. Potency of a vaccine
is judged by VVM indicator present on the ampule.

Four Indians, including Prime Minister Manmohan Singh and fugitive Dawood Ibrahim, have made
it to the Forbes list of the world's most powerful people topped by US President Barack Obama,
who is followed by Chinese President Hu Jintao and Russian Prime Minister Vladimir Putin. Among
the four Indians, Manmohan Singh has been ranked highest at 36th position, while the country's
top corporate house Reliance Industries' chief Mukesh Ambani finds himself ranked 44th ahead of
Tata Group Chairman Ratan Tata (59th). Ranked very next to Manmohan Singh is al-Qaida founder
Osama bin Laden at 37th place, while Indian underworld don Dawood Ibrahim is at 50th position.

The Union government has said it would soon launch two more schemes to improve the health
status of adolescent girls and mothers. When rolled, the “Rajiv Gandhi Abla Scheme” and the
“Indira Gandhi Matritva Scheme” would be additions to the eight government schemes already in
place to fight undernourishment among children aged 0 to six years and pregnant women. These
eight schemes include: Integrated Child Development Scheme (ICDS), Midday Meal Scheme,
Targeted PDS Scheme, National Maternity Benefit Scheme, Antodaya, Annapurna and National Old
Age Pension Scheme. All schemes are closely monitored by the Supreme Court under the Right to
Food verdict.

India’s public officials and politicians continue to be perceived as “highly corrupt” by global
experts and business surveys, says the latest Corruption Perception Index (CPI) by the
Transparency International. With “Integrity Score” of 3.4, the CPI 2009 has ranked India 84th
among the 180 countries surveyed, below other developing economies like Brazil (3.7) and China
(3.6). The 2009 edition analysed 180 countries, the same number as the 2008 CPI. In 2008, India
scored 3.4, dropping from 3.5 in 2007.
Pakistan, with a score of 2.4, is ranked 139th on the list, followed by Bangladesh (2.4), Nepal
(2.3), Maldives (2.5) and Sri Lanka (3.1). Haiti, Iraq, Myanmar and Somalia have recorded the
score of less than 1.5, while leaders of the pack are New Zealand (9.4), Denmark (9.3) and
Singapore and Sweden (9.2).

Transparency International’s Corruption Index has ranked India 84 out of 180 countries.
However, with an integrity score of 3.4, India is the least corrupt country in South Asia, excluding
Bhutan.

With a fortune of $32 billion, industry leader Mukesh Ambani has topped the list of richest
Indians, where his estranged brother Anil figures at number three with nearly half the wealth. Steel
tycoon Lakshmi Mittal, who lives in London but holds an Indian passport, is sandwiched between
the Ambani brothers in the list at number two with a net-worth of $30 billion, according to the US
business magazine Forbes. The list of India's richest 100 people included 52 billionaires, nearly
double from 27 in 2008 and just short of 54 in November 2007, but there were only six women.The
collective wealth of these 100 is $276 billion (nearly Rs 13 lakh crore), which corresponds to
almost one-fourth of the country's GDP.

India’s first LTTD (Low Temperature Thermal Desalination System) plant—with a capacity of 1
lakh litres fresh water a day—was developed and commissioned in May 2005 at Kavaratti.

84-km Mughal Road, is a dream project under construction that will connect the Kashmir valley
through Shopian with Bafliaz-Poonch in the Jammu region. Mughal emperors used to ride into the
valley using this historic road which runs through high mountains. The centrally-sponsored Rs 640-
crore road project, taken up in 2006, would be thrown open to public by July 2010.

India joined China, Brazil and South Africa to prepare a joint front for tough negotiations with rich
nations at the Copenhagen Climate talks. The four countries, seen as the “BASIC” block, agreed to
a strategy that involved walking out of the conference together if western nations try to force
terms on the developing world.

Kisan Vision Yojna is ambitious project of Indian Railways to set up cold-chain facilities across
the country for fresh fruit and vegetables. The pilot project has been started at Singur in West
Bengal.

Continuing the commendable trend of the past decade, India’s forest cover increased by 728 sq
km during 2005-07—a marginal rise of 0.03%. Overall, 21.02% of the country’s geographical area
is now under green cover. In the past 10 years, forest cover has increased by 3.31 million
hectares, showing an average 0.46% increase every year. These figures are contained in the State
of Forest Report 2009. The biennial report is based on satellite imagery up to 2007. India’s
increasing forest cover deserved praise, especially compared to the loss of 2.5 million ha of forests
in Brazil every year. India, however, lagged behind China’s achievement of gaining 4 million ha of
forests annually. While India seemed to be doing well in protecting dense forests, the report
indicated that moderately dense forests weren’t faring too well.

The world’s largest atom smasher, Large Hadron Collier, broke the record for proton acceleration
on November 30, 2009, previously held by a US lab, Fermilab, since 2001, sending beams of
particles at 1.18 trillion electron volts around the massive machine.

CURRENT NATIONAL AFFAIRS

BANKING & FINANCE

E-payments to be credited directly to merchants
In what would make online commerce faster for customers, the Reserve Bank of India (RBI) has
mandated that all payments for such transactions be credited directly to merchants, instead of
getting cleared by intermediaries such as CC Avenue and Paypal.

Currently, until a payment is authorised and processed by intermediaries, a transaction is not

completed. For instance, online retailers such as eBay do not ship goods purchased online
unless funds are credited to their account, after being routed through an intermediary. CC
Avenue, BillDesk, Direc-Pay, ICICI PaySeal and Paypal are among major payment gateways in
India.

Under the new system, all payments to merchants shall be effected within a maximum of three
days from the date of transaction. From now on, no payment other than the commissions at the
pre-determined rates/frequency shall be payable to the intermediaries. The existing system
has some pitfalls. Often, there is a delay in transferring money to the merchant; at times it is
more than seven days.

SEBI allows auction of shares in follow-on offer

SEBI has allowed companies to go for pure auction of shares (offered at bid price) in a follow
on public offer for pricing of issues for institutional investors. However, the companies will
have to offer shares to retail investors, including employees, at the floor price, fixed before
start of the auction process and the existing system of public offerings of shares at an uniform
price in a band through book-build method will also continue.

To encourage small and medium firms to come out with public issues, SEBI has also allowed
existing stock exchanges to set up a separate trading platform and relax the criteria like track
record on profitability for listings. On the issue of trading hours, the board has left it on
exchanges to decide between 9 am and 5 pm.
Giving more choices to listed companies in pricing shares via book-build route, SEBI introduced
an additional method, called Dutch auction, in which the companies making public issues will
fix only floor prices. Institutional bidders will have to submit bids above the floor prices. The
bidders will be allotted shares on the basis of their bid prices. The highest bidder will be
offered shares first, followed by the second-highest.

If the demand for the highest bidder is equal to the total issue size, second-highest bidder will
get nothing. However, if the issuer wants to put a cap on allotting shares to a single bidder, it
can do so.

Under the present system, known as French auction, companies fix a band of prices for public
offers. The maximum difference between floor and ceiling prices in the band is 10%. A bidder
has to bid in the given band only. On the basis of demand at various price points, the offer
price is fixed and applied uniformly to all investors. The new methodology of pricing is likely to
be used by government while divesting its stake in REC and NTPC.

COMMISSION
Liberhan inquiry commission
It took 17 years and 48 extensions for the Liberhan Commission, probing the 1992 demolition of
the Babri Masjid in Ayodhya, to submit its report to Prime Minister Manmohan Singh in June
2009. One of the country’s longest running inquiry commissions, it has cost the government
nearly Rs 7 crore.

During the entire tenure, the one-judge probe was dogged by procedural delays, non-
cooperation from key witnesses and even constant transfers during the early days of the
commission’s functioning. The commission’s lawyer, Anupam Gupta, dissociated himself from
the one-man panel after eight years because of differences with Justice Liberhan.

The commission recorded statements of scores of politicians from the Bharatiya Janata Party
(BJP), including senior leaders Advani, Murli Manohar Joshi, then Chief Minister of Uttar
Pradesh Kalyan Singh and now Bharatiya Jan Shakti party chief Uma Bharati. Several members
of the Congress and the Rashtriya Swayamsevak Sangh (RSS) were also questioned.

Former Prime Minister Atal Behari Vajpayee, senior BJP leaders LK Advani, Murli Manohar Joshi
and ex-UP Chief Minister Kalyan Singh are among the 68 persons severely indicted by Justice
M.S. Liberhan Commission for their role in the Babri Masjid demolition 17 years ago, which led
the country to a “brink of communal discord.”

The commission, surprisingly, is soft on Congressman and the then Prime Minister P.V.
Narsimha Rao for his perceived ‘inaction’ in deploying Central forces or imposing President’s
Rule in then BJP-ruled Uttar Pradesh to protect the 16th century structure, purported to have
been built during the reign of Mughal emperor Babar. The commission refers to it as the Ram
Janam Bhoomi-Babri Masjid structure (RJBM) and has clarified that its role was not to study if
the structure was a mosque or a temple or even its history.

In his 1,029-page report, Justice Liberhan, a former Chief Justice of Madras High Court, indicts
the perpetrators for having reduced “the oldest civilisation to stark intolerance and
barbarianism, all for petty political gains.”

Coming down heavily on the troika of Advani, Vajpayee and Joshi, Justice Liberhan calls them
“pseudo-moderates" and refers to them as “icons” of the movement. The commission also
indicts Uma Bharti, RSS ideologue K. Govindacharya and Shankar Singh Vaghela, along with
Kalyan Singh, who are no more connected with the BJP or the RSS.
Silent on punitive action against those indicted for the 1992 Babri Masjid demolition,
government’s Action Taken Report (ATR) on the much-delayed Liberhan Commission findings
agrees to enact the Prevention of Communal Violence Bill to punish those who misuse religion
for politics, and set up special tribunals to prosecute related offences.

In the name of action against perpetrators of the demolition, all the ATR promises is expediting
the hearing of cases registered 17 years ago. These include the case at Lucknow special court
against lakhs of unknown karsewaks; case against eight accused (politicians also named by
Liberhan) in Rae Bareli special court and 47 other cases in the Lucknow special court.

The ATR, however, is non-condescending to Liberhan’s major recommendation of a statutory

national commission of cultural experts to determine the historical legacy of monuments, like
those in question. The government plainly rejected this proposal saying the ASI could handle
the job. It also declined Liberhan’s idea to confer statutory status on the National Integration
Council, though it accepted in part his recommendation that political leaders and holders of
public offices should not simultaneously hold positions in religions organisations.

ECONOMY
India climbs to tenth slot among top gold holders
India is the world’s largest private gold consumer, but the government’s holding of gold as an
asset is modest. Even so, the latest purchase of 200 metric tonne from IMF puts it at number
ten among the list of top 10 gold-holders in the world.

For India, the purchase, apart from signalling that its economy has come full circle, is a way of
spreading its assets which are said to be currently over-weighted with foreign currency, mainly
in the form of sovereign US Treasury bonds. In other words, it is a hedge against a falling
dollar.

Of India’s current foreign exchange reserves of nearly $285 billion, foreign currency assets
account for more than 90% ($268.3 billion), followed by gold ($10.3 billion), IMF’s Special
Drawing Rights ($5.2 billion) and a reserve position in the IMF of $1.59 billion.

While India’s current gold holdings are said to be historically low, buying 200 tons in addition to
the 358 tons it already holds is expected to bump up the gold reserves to more than 6%.

India’s gold trauma occurred in the summer of 1991, when faced with dwindling foreign
exchange reserves and a possibility of a default on payments, the government mortgaged 47
tons of gold to the Bank of England and 20 tons of gold to the Union Bank of Switzerland to
raise $ 600 million. The move helped tide over the balance of payment crisis, and also kick-
started the reforms process.

Food prices biting buyers

Even as the overall inflation rate remains at around 1.5%, prices of food articles have gone up
13.4% in the last one year. That statistic is bad news for the common man, but details of
specific commodities like potatoes, onions and pulses are even more disconcerting.

According to the latest data, prices of potatoes have doubled over the last 12 months; onions
are 50% more expensive and the prices of pulses have gone up by over 23% on average. It’s
another matter that the price of some specific pulses like arhar and moong have risen to all-
time highs of around Rs 90 per kg.

Contributing to the spike in food prices has been a weak monsoon in 2009, which is expected to
lead to foodgrain production falling by around 21 million tonnes in the current kharif season
compared to kharif 2008. Rice production is estimated to fall by over 15 million tonnes and the
output of coarse cereals by 5.5 million tonnes.

All-weather roads jack up rural income by 100%

All-weather roads in the villages of the country has doubled the income of rural households,
raised literacy rate by 10%, and appreciated land prices by up to 80%, says the World Bank. “In
2000, about 40% of India’s 825,000 villages lacked all-weather roads ... With access to roads,
incomes have soared. Household incomes rose by 50% to 100% on average.”

World Bank has been supporting India’s rural connectivity programme—Pradhan Mantri Gram
Sadak Yojana (PMGSY). It aids projects in several places like Himachal Pradesh, Rajasthan,
Jharkhand and Uttar Pradesh. Over the years, World Bank’s concessionary lending arm
International Development Association (IDA) has supported many rural roads projects, both
standalone and components of larger projects. The year-round connectivity has narrowed
gender gap with access to education for girls and raised job opportunities, IDA said adding
every Rs 10 lakh spent on rural roads has helped lift 163 people out of poverty.

The World Bank has said "a second project of $1 billion is under preparation". It would aim to
improve maintenance, weak capacity, governance and accountability, and would introduce
several efficiency measures. Meanwhile, for two-laning of 6,372-km of the total of 19,702 km
single lane highways in the country, the finance ministry has requested the World Bank for a
loan of $3 billion.

India’s GDP beats all forecasts

India's economy gave yet another indication of its rapidly improving health, prompting greater
ambition from policy-makers still chary of withdrawing the stimulus medicine responsible for
the recovery. Gross Domestic Product (GDP) expanded by a surprisingly strong 7.9% during the
July-September second quarter, its fastest pace in a year and a half. The growth was driven
largely by a pick-up in manufacturing, increased government expenditure, robust investments
and modest growth in farm output despite the drought.

The growth in the first half of the year is now a respectable 7% as against 7.8% during the same
period a year ago. In the fiscal year ended March 2009, the economy grew by 6.7%, its weakest
in six years and way below rates of 9% or more in the previous three years.

The strong growth may put pressure on RBI to hike policy rates sooner than March 2010 as
worries about inflation grow. Bond yields firmed up to 7.25%, six basis points up, as traders see
a 25-basis-point hike in key policy rates by January 2010.

There will also be pressure on the government to cut expenditure and roll back stimulus
measures such as the cut in indirect rates. The fiscal deficit between April and October 2009
was 61% of the target for the year, but slower-than-expected tax collections suggest the
government could overshoot the target of 6.8% of the GDP for the year.

ENVIRONMENT
Tougher air quality norms unveiled
India has revised its National Ambient Air Quality Standards (NAAQS), discontinuing the old
practice of different air quality standards for different land-use classes like residential and
industrial areas. The country will now have uniform health-based NAAQS with uniform
standards for all areas, whether residential or industrial.

Revised after a gap of 15 years, new air quality standards also provide legal framework for
controlling air pollution and protecting public health, meaning that any citizen can now
approach the court demanding better air quality. The revised standards include initiatives that
had been developed in consonance with globally best practices and in keeping with latest
advancements in technology and research.

The big question, however, is of enforcement, which could prove to be a difficult task.

The standards have brought two new deadly pollutants, PM 2.5 and ozone, within the ambit of
regulation. The standard for nitrogen oxide has been made more stringent, from the existing 60
micro-gm per cubic metre, it has been tightened down to 40 micro-gm per cubic metre.
Suspended particulate matter (SPM) as parameter has been replaced by fine particulate matter
(PM 2.5), which is more relevant for public health.

HEALTH
India's children stunted, undernourished, wasted: UN
India has the largest number of stunted children below the age of five in the world, according
to the latest United Nations Children's Fund report.

Approximately 200 million children, under the age of five, suffer from stunted growth in the
developing world. The report 'Tracking Progress on Child and Maternal Nutrition' found that
stunting is primarily caused due to childhood under-nutrition, which contributes to more than a
third of all deaths in children under five.

India also has one of the highest numbers of underweight children, below the age of five, and
one third of 'wasted children'—those facing a greater chance of death—in the world.

Out of a total of 19 million new-borns per year in the developing world that are born with low
birth-weight, India has 7.4 million low birth-weight babies per year—the highest in the world.
The report finds that 80 per cent of the developing world's stunted children live in 24
countries.

India, however, does not have the highest prevalence of stunted children as the high numbers
was due to its large population. In terms of prevalence, Afghanistan was first while India was
12th. In 17 countries, underweight prevalence among children under 5 years old is greater than
30 per cent. The rates were highest in Bangladesh, India, Timor-Leste and Yemen,` with more
than 40 per cent of children being underweight.

The study also found that 13 per cent of children, under 5 years old, in the developing world
were wasted, and 5 per cent were severely wasted (an estimated 26 million children).

A number of African and Asian countries have wasting rates that exceed 15 per cent, including
India (20 per cent) Bangladesh (17 per cent), and Sudan (16 per cent). The country with the
highest prevalence of wasting in the world is Timor-Leste, where 25 per cent of children under
5 years old are wasted.

In Asia, the prevalence of stunting dropped from approximately 44 per cent in 1990 to an
estimated 30 per cent in 2008, while in Africa it fell from approximately 38 per cent in 1990 to
an estimated 34 per cent in 2008. Unless attention is paid to addressing the causes of child and
maternal under-nutrition today, the costs will be considerably higher tomorrow.
JUDICIARY
Finally, SC judges declare assets
In a move that will enhance the image of the judiciary, 21 out of the 22 Supreme Court judges—including Chief
Justice K.G. Balakrishnan—have declared their assets and of their wives by posting the details on the court’s
website—supremecourtofindia.nic.in.

The step is expected to end months of controversy over the apex court's refusal to place in public domain such
details, maintaining that it was not bound to part with these under the Right to Information Act (RTI).

The details, provided under the heading “Assets of Judges,” however, did not have the total assets of each
judge and his wife. Also, the value of a number of properties owned by them is not given. Most of the judges
had provided such details to the CJI at the time of their elevation to the apex court, but these were not placed
in public domain.

FOREIGN RELATIONS
Visit of Australian PM to India
Australian Prime Minister Kevin Rudd visited India in November 2009 with a message to India that Australia
remained a safe destination for Indian students. Mr Rudd said his government was committed to using the “full
force” of law to protect Indian students.

During his visit, in an attempt to upgrade bilateral ties, both countries agreed to elevate the relationship to a
strategic partnership. Discussions between Mr Rudd and Mr Singh covered all aspects of the bilateral
relationship—from trade to climate change. On climate change, Mr Rudd said: “Indian Prime Minister and I
discussed the great challenge of climate change. We must have a good ambition for Copenhagen.” The two
sides agreed that it is an issue of concern for both countries, with the Indian side reiterating its position on
climate change.

The two sides have also decided to expedite the feasibility study to look into the impact of an FTA between the
two countries. In fact, the Australian side has made no secret of its interest in an FTA, with Mr Rudd saying
that he expects the study to recommend an FTA.

Iran seeks help to combat terror

Notwithstanding the US pressure, India has unequivocally conveyed to Iran its commitment to participating in
the 7.4 billion dollar Iran-Pakistan-India (IPI) gas pipeline project. This reassurance was given by both Prime
Minister Manmohan Singh and External Affairs Minister S.M. Krishna at separate meetings with visiting Iranian
Foreign Minister Manouchehr Mottaki in New Delhi.

At the delegation-level talks between the two foreign ministers, Iran sought greater cooperation with New
Delhi in fighting terrorism emanating from Pakistan. Like India, Iran has also been affected by terrorism
sponsored from the Pakistani soil. A horrific suicide attack in south-east Iran in October 2009 targeted the
country's Revolutionary Guards and was blamed on Pakistan-based Jundallah, a Sunni extremist outfit.

This was the first high-level contact between the two countries since the UPA government returned to power in
New Delhi and Mahmoud Ahmedinejad was re-elected as the President of Iran in June 2009.

Mottaki renewed an invitation to Manmohan Singh to visit Iran. The invitation was accepted and dates of the
visit would be finalised in consultations through diplomatic channels.

The two sides also agreed to convene an early meeting of the joint working group (JWG) on energy cooperation
between them to resolve issues connected with the pipeline project. An Iranian team would be visiting India
soon for the purpose. As Iran and India share common interests in Afghanistan, they also discussed joint
infrastructure projects like the deep sea port of Chabahar and a rail link to provide better connectivity for
Afghanistan to Central Asia.
Visit of Prime Minister Manmohan Singh to USA
Prime Minister Manmohan Singh’s deliberations with US President Barack Obama in end-November 2009, as his
first State guest, did not result in any dramatic announcements but New Delhi was satisfied that it was able to
persuade Washington to acknowledge that India was being inflicted by terrorism from neighbouring Pakistan.

Washington went a step further by calling for the defeat of terrorist “safe havens” in Pakistan and Afghanistan
and agreed to enhance collaboration in this effort.

The joint statement was prefaced with a commitment by both leaders to expand and deepen their relations.
President Obama described India as a “rising and responsible global power” to assure India that it was very
much on the US radar and that any impression to the contrary was incorrect.

The two countries signed a new memorandum of understanding on counter-terrorism cooperation to help each
other in information and intelligence sharing related to terrorism, which institutionalised an arrangement
which has been in place since the 26/11 Mumbai terror attacks.

President Obama’s commitment on the implementation of the Indo-US civil nuclear agreement during his press
conference also found mention in the joint statement, which also acknowledges India as a responsible nuclear
power. Taking note of the Obama administration’s sensitivities on non-proliferation, India was quick to reaffirm
its unilateral and voluntary moratorium on nuclear testing and agreed with US to start early negotiations on a
multilateral, non-discriminatory and internationally verifiable Fissile Material Cut-off Treaty. On its part, the
US committed to ratify the Comprehensive Test Ban Treaty (CTBT) at an early date. There are fears that such a
development would encourage the US to pressurise India to sign the CTBT, which has not been accepted by
New Delhi.

President Barack Obama assured Prime Minister Manmohan Singh that the US-China joint statement issued on
his visit to Beijing earlier in November was not an endorsement of Chinese mediation in the India-Pakistan
dispute. Mr Singh said Obama told him that the intention of that statement was not to support any “third-party
intervention in issues in South Asia.” He said he was “very satisfied” with Obama’s assurance on an issue that
caused much heart-burn in New Delhi. India opposes third-party mediation in the dispute with Pakistan over
Kashmir.

On Afghanistan, Prime Minister Singh said Obama told him that the US “highly values” India's role in
reconstruction and development of the war-ravaged country. Manmohan, who met several Republican
Democratic as well as Republican lawmakers while in Washington, said there was bipartisan support for India’s
role in Afghanistan. This role is viewed with suspicion by Pakistan.

Visit of Canadian PM to India

India and Canada have entered into an agreement for enhancing energy security. Yet another deal has been
inked between the two nations to kick off negotiations between the two with respect to free trade area. This
happened during the meeting of Prime Minister Manmohan Singh with visiting Canadian Prime Minister Stephen
Harper, in November 2009, on a range of bilateral issues, including trade and investment, civil nuclear
cooperation, the global financial crisis, terrorism and climate change.

The energy security pact will enable better cooperation between the nations in areas of renewable energy and
energy efficiency, oil and natural gas, power generation, transmission, distribution and end-use, energy
research and development.

The FTA deal will enable the formation of a joint study group for exploring the chances for developing a
Comprehensive Economic Partnership Agreement, with the first meeting slated to be held in December.

The two nations have also decided to cooperate for tackling global terrorism.

India reaches nuke agreement with Canada

On November 28, 2009, India reached a civil nuclear agreement with Canada. The agreement was firmed up
during a meeting between Prime Minister Manmohan Singh and his counterpart Stephen Harper on the sidelines
of the Commonwealth Summit.

Canada has become the eighth country with which India has reached civil nuclear agreement since the NSG
lifted a 34-year-old ban on India to join global nuclear trade in September last year. The other countries with
which India has already signed the civil nuclear deal are the US, France, Russia, Mongolia, Kazakhstan,
Argentina and Namibia.

China protests against Dalai Lama’s Tawang visit

The Chinese rhetoric against India for the Dalai Lama’s visit to Arunachal Pradesh in November 2009 picked up
again with a State-run newspaper running a report that said the Tibetan spiritual leader undertook the
Arunachal visit under pressure from New Delhi. India rubbished the assessment and took the opportunity to
remind China that the Dalai Lama was free to travel anywhere in the country.

Though the Chinese government has refrained from directly attacking India since the meeting between Prime
Minister Manmohan Singh and Chinese Premier Wen Jiabao, it is significant that China’s state-run media ran a
report attacking India over the visit of the Dalai Lama.

“India may make use of the Dalai Lama to solve the decades-long territorial conflict by encouraging his visit to
southern Tibet (Arunachal Pradesh),” Hu Shisheng, a researcher of southern Asian studies at the China
Institutes of Contemporary International Relations, was quoted as saying. China calls Arunachal Pradesh
southern Tibet.

“The Dalai Lama went to southern Tibet at this critical moment probably because of pressure from India... By
doing so, he can please the country that has hosted him for years,” Mr Hu said. He added: “India may have
forgotten the lesson of 1962, when its repeated provocation resulted in military clashes. India is on this wrong
track again...When the conflict gets sharper and sharper, the Chinese government will have to face it and solve
it in a way India has designed,” Mr Hu said.

China had protested against the visit of the Dalai Lama to Tawang monastery in Arunachal Pradesh, but India
had dismissed the protests by pointing out that the Dalai Lama continues to be a guest in India.

Responding to that attack, the Dalai Lama dismissed China’s claim that his visit was anti-China and had said
that Arunachal was an integral part of India.

Genisis of the dispute: In 1913-14, China, Tibet and Britain tried to hammer out the Shimla Accord—a deal
defining borders between Inner and Outer Tibet, and between Outer Tibet and British India. Henry McMahon, a
British administrator, drew up 550 miles of the boundary demarcating British India and Outer Tibet. China
walked out of the talks, rejecting the line between Inner and Outer Tibet, but the Accord nonetheless ceded
Tawang and other Tibetan areas to the British Empire. Since then, China has declared the line invalid, citing
the absence of its signature on the Shimla Accord. After the collapse of Chinese power in Tibet, the McMahon
line was, de facto, accepted as official, and Britain established administrations in the area. However, Tibet
and later the People’s Republic of China claimed Tawang district after India's independence. With China all set
to take over Tibet, India declared the McMahon line the official boundary in 1950.

The North East Frontier Agency was created in 1954. The Tibetan uprising was suppressed by China and its self-
ruling government abolished in 1959. The Dalai Lama fled to Dharamsala, and maps published by the Tibetan
government-in-exile now show McMahon Line as the southern border of Tibet.

During the 1962 war, China acquired large parts of NEFA but voluntarily withdrew to the McMahon line. It was
only in 1985 that China declared its ownership claims on the eastern tract roughly corresponding to Arunachal
Pradesh. Until then, it was prepared to cede this land to India if it was given the cold western desert of Aksai
Chin in Ladakh, of strategic importance to China. India rejects China’s claims over both, and post-1985 China
has insisted that Arunachal Pradesh is theirs.
India, EU ink atomic energy pact
On November 6, 2009, India and the European Union (EU) signed a major accord for cooperation in the civil
atomic energy field and pledged to conclude an ambitious free trade agreement (FTA) between them within a
year. The atomic energy agreement is aimed at facilitating India’s participation in the international
thermonuclear experimental reactor (ITER) project for fusion research.

Prime Minister Manmohan Singh led the Indian side at the 10th India-EU summit while the EU was represented
by Swedish Prime Minister Fredrik Reinfeldt, in his capacity as chairman of the EU Council and EU President
Jose Manuel Barroso.

The ITER project on fusion energy is said to be the costliest experiment of its kind that will cost some 10 billion
euros. The first fusion reactor is expected to be operational in Cadarche in southern France by 2016.

India and the EU have been negotiating an FTA since 2007 but have not been able to firm up the accord due to
differences over EU’s attempts to link trade with climate and other extraneous issues. Both sides are of the
view that a political push was need for the agreement to be wrapped up by 2010.

In a joint statement the two sides shared the understanding that the development of nuclear energy for
peaceful purposes should take place in conformity with the highest standards of safety, security and non-
proliferation. The joint statement further said India and the EU welcomed the renewed momentum in global
disarmament talks while reaffirming their shared interest in working together for disarmament and for
countering the proliferation of weapons of mass destruction and their delivery systems. In this context, they
stressed the importance of strengthening national export control laws.

On terrorism, the EU condemned the terrorist attacks in Mumbai in November 2008 and reiterated the need for
intensifying global cooperation in combating international terrorism. Without any reference to Pakistan, the
two sides emphasised the utmost importance of bringing the perpetrators of the crime to justice.

On international financial crisis and global economy, the two sides reiterated their commitment to continue to
sustain a strong policy response until the recovery was secured, to prepare internationally coordinated and
cooperative exit strategies to be implemented once the recovery has taken hold, to strengthen and reform
financial regulatory and supervisory systems to ensure global financial stability and prevent further crises, and
to ensure that the international financial institutions reflect contemporary economic realities.

French Parliament ratifies N-deal with India

Even as India and the United States iron out their differences over the reprocessing of the spent nuclear fuel
under the 123 agreement, the French Parliament has ratified the India-France nuclear accord, paving the way
for French nuclear giants to build nuclear plants in India.

The French National Assembly adopted a law authorising the ratification of the agreement signed between the
two countries on September 30, 2008, during Prime Minister Manmohan Singh’s visit to Paris. This is subsequent
to the adoption of the same law by the Senate on October 15, 2009.

It will enable the early entry into force of the agreement. It now paves the way for strengthening relations
between French and Indian partners and for more concrete developments in the industrial field.

France was the first country to sign a civil nuclear cooperation agreement with New Delhi days after India
secured a waiver from the nuclear suppliers’ group (NSG) to undertake nuclear commerce in 2008. Since then,
India has signed nuclear deals with the US, Russia, Namibia, Kazakhstan, Mongolia and Argentina.

French nuclear supplier Areva has been allocated the nuclear project site at Jaitapur in Maharashtra to initially
build two power plants.

The Indo-French nuclear agreement allows reprocessing of the spent nuclear fuel from French nuclear reactors
under safeguards, and gives an assurance of lifetime supply of nuclear fuel for these reactors. It does not bar
the transfer of enrichment and reprocessing technologies. With the ratification of the agreement by the French
Parliament, France becomes the second country after Russia to give unconditional rights to reprocess spent
nuclear fuel to India.

The agreement makes it mandatory that reprocessing be done under the safeguards of the International Atomic
Energy Agency.

SCANDALS
CBI pegs Satyam fraud at Rs 14,000 cr
Seven months after its first charge sheet in the Satyam scam, CBI on November 24, 2009, filed a supplementary
charge sheet against disgraced Satyam founder B. Ramalinga Raju and nine others, pegging the Satyam fraud at
Rs 14,000 crore instead of the Rs 7800 crore that Raju had owned up to in January 2009.

The additional charge-sheet, however, fails to nail Raju and aides on siphoning of funds from Satyam
Computer, instead saying that the investigating agency was planning to file a separate chargesheet on the
allegations of funds diversion and income-tax frauds within the next few days.

The 200-page charge-sheet filed in the CBI court charged the accused of forging board resolutions and
unauthorisedly obtaining loans worth Rs 1220 crore from banks as well as inflating Satyam revenues to the tune
of Rs 430 crore by creating fake customers and generating fake invoices.

The charge-sheet also identifies 1065 properties with a documented value of Rs 350 crore that were acquired
by the Rajus with the spoils of the fraud. These include 6,000 acres of land, 40,000 sq yd of housing plots and
90,000 sq ft of built-up property.

CBI has also slapped charges of criminal breach of trust and falsifying accounts by inflating the acquisition price
of Nipuna Services Ltd, the ITeS arm of Satyam. It also slapped a criminal breach of trust on them in the
declaration and disbursal of dividends of Satyam Computers.

Meanwhile, the Rs 1,220 crore unauthorized loans detailed by CBI in the charge-sheet are not reflected in the
company's books and are over and above the Rs 1,230 crore that Raju confessed to Satyam having received
from various Raju family owned companies including Maytas Infra and Maytas Properties.

Madhu Koda arrested for mining and money laundering

The Jharkhand Vigilance Bureau has arrested former Chief Minister Madhu Koda in the multi-crore mining and
money laundering case. A joint team of Jharkhand Police and State vigilance bureau arrested Mr Koda after he
repeatedly refused to respond to summons from the Enforcement Directorate for questioning. Mr Koda
described his arrest as part of Congress’ conspiracy to keep him away from election campaigning.

Mr Koda is alleged to have laundered thousands of crores during his stint as the Chief Minister between 2006
and 2008. ED’s probe into the money laundering operation, which is spread from Singapore to Thailand and
from Dubai to Liberia, is set to balloon into one of the biggest bribery and corruption scandals in the country.

NAGALAND
Assembly hails rebel groups
The Nagaland State Legislative Assembly has extended ‘recognition’ to the Naga undergrounds for having
“selflessly worked, fought and sacrificed” for the aspirations and rights of the Naga people. This ‘recognition’
as a resolution was adopted in the State Assembly on November 29, 2009, even as talks between the
government of India and the NSCN(IM) have yet to reach a conclusive stage. The resolution was passed
unanimously with members cutting across party lines to support it.

The State Assembly also reiterated its earlier stand on integration of all Naga-inhabited areas in the region, an
issue that also figures prominently on the NSCN agenda.
The Nagaland Assembly has so far passed four resolutions in favour of integration of Naga areas—first on
December 12, 1964, followed by August 28, 1970, September 16, 1994 and December 18, 2003. The 60-member
House in the resolution also appealed the negotiating parties of the Naga political dialogue to expedite the
political process and bring about an early resolution through a negotiated settlement which was honourable
and acceptable to the Naga people.

The State Assembly, through its resolution, also appreciated the government of India, particularly Prime
Minister Manmohan Singh and Union Home Minister P. Chidambaram for their “renewed sincerity” towards
finding a permanent solution to the decades-old “Indo-Naga” political problem.

The resolution also appreciated the civil society, churches, NGOs and the Forum for Naga Reconciliation (FNR)
for their all out efforts towards reconciliation, understanding and oneness of all sections of Naga society. The
resolution also hailed the sincerity of the underground groups, especially their commitment towards peace and
understanding by signing the “Covenant of Reconciliation” earlier at Chiangmai in Thailand on September 23,
2009.

The resolution further decided to constitute a Joint Parliamentary Committee on the Naga political issue
comprising members from all political parties. This committee would carry the voice of the House to all
concerned sections including the Centre and the Naga rebel groups.

TERRORISM; LAW & ORDER

Centre ready with anti-Naxal plan
Home Minister P. Chidambaram announced on November 1, 2009 that the Union government is a ready to
launch the much-awaited full-fledged anti-Naxal operations in three different areas, considered tri-junctions of
Maoist violence.

The tri-junctions, which have been identified for the offensive against the ‘Red Rebels’, are: Andhra Pradesh-
Maharashtra-Chhattisgarh; Orissa-Jharkhand-Chhattisgarh and West Bengal-Jharkhand-Orissa.

Around 40,000 paramilitary personnel would assist the respective State police forces during the operations.
Almost 7,000 specially trained troops in jungle warfare are also part of the total strength of the Central forces
to be deployed for the task.

The anti-Naxal plan also includes Rs 7,300 crore package for unleashing developmental works in areas cleared
off the Left-wing extremists. Officials feel that the Naxal menace, which has now spread to 40,000 sq km area
across the country, can be wiped out in a period of 12 to 30 months.

Around 25 lakh people live in areas where Maoists are now having a free run. The Naxalites have killed more
than 2,600 people, including civilians, in 5,800 incidents in last three years.

November CURRENT GENERAL KNOWLEDGE 2009

ABBREVIATIONS
MFSS: Mutual Fund Service System

AWARDS
Kalinga Prize, 2009
Professor Yash Pal of India has been awarded UNESCO's annual Kalinga Prize for the Popularization
of Science, jointly with Trinh Xuan Thuan of Vietnam.
Prof Pal was recognized for his participation in many Indian television programs that deal with
popular science, including Turning Point and Science is everywhere. He also helped establish the
Inter-University Centre for Astronomy and Astrophysics in Pune and the Centre for Educational
Communication in Ahmedabad.

Established in 1951, the Kalinga rewards honour a person who has helped interpret science,
research and technology for the general public.
Sahara Indian Sports Awards, 2009
Abhinav Bindra and Saina Nehwal have been adjudged Best Sportsman and Best Sportswoman
of the year, respectively. Saina also won the Best Young Achiever award in the female category,
with tennis ace Yuki Bhambri taking the honours in the male category.

The other winners were P. Gopichand (Coach of the Year), Mithali Raj (Best Female Cricketer),
Gautam Gambhir (Best Male Cricketer), Vijender Singh (Boxing), Sushil Kumar (Wrestling),
Gaganjeet Bhullar (Golf) and Jayanta Talukdar (Archery), all under the category of Outstanding
Performances in Other Sports.

The Indian cricket team was adjudged the Team of the Year, while there was a special award for
woman boxer M.C. Mary Kom. Badminton legend Prakash Padukone won the Sporting Legend
honour. Sylvanus Dung Dung, a member of the gold medal-winning Indian hockey squad at the
1980 Moscow Olympics, won the Unsung Hero award.

C.K. Nayudu Lifetime Achievement Award, 2009

India’s 1983 World Cup hero, former all-rounder Mohinder Amaranth has been honoured with the
Award by the BCCI. The award comprises a trophy and a cheque for Rs 15 lakh. Amarnath scored
4,378 runs from 69 Test matches, in a career that stretched from 1969 to 1988. He also played 85
One-day Internationals, in which he scored 1,924 runs.

Indira Gandhi Prize for Peace, Disarmament and Development, 2009

Bangladesh Prime Minister Sheikh Hasina has been chosen for the prestigious award for her
“outstanding contribution to the promotion of democracy and pluralism”. The award carries a cash
prize of Rs 25 lakh and a citation.

CYBER SPACE
Net turns truly Indian as .bharat goes online from 2010
During its 40 years, including the last 15 years it grew rapidly, the Internet has been an alien to
800-900 million non-English speaking Indians. The Internet started as an English language
phenomenon, but even in the later years, when technology made it possible to have content in local
languages, addresses continued to be in English.

Come February 2010, millions of non-English speaking Indians will be able to type .bharat in
Devnagari script while accessing popular websites including Google, Yahoo!, MSN and many others.

The first right of refusal for .bharat URLs will be given to those with .in registration. For example, a
google.co.in or a yahoo.co.in will get the first right of refusal to have a google.bharat or
yahoo.bharat in Indian languages.

Fake online anti-virus software pose threat

For users seeking to quarantine their computers by using anti-virus software available online, fake
anti-virus (FAV) is a growing, invisible threat. While it’s much easier to identify a malicious software
code received through spam mail, or other suspicious attachments, fake anti-virus (FAV) are
making it difficult for users to escape from them. Experts tracking cyber crime say these FAVs can
cost anywhere between Rs 500 to Rs 6,000, with malicious code writers making around $10,000 on
a good day. According to computer security firm PandaLabs, only 1,000 samples of FAVs were
reported during the first quarter of 2008. However, by the second quarter of 2009, such instances
have reached 3,74,000. Malware, which is short for malicious software, has been growing
exponentially during past few years. In 2008, over 1.5 million attacks were detected by McAfee, and
the number has already hit 1.2 million for the first half ending June 2009.

DAYS; YEARS
UN declares July 18 as Nelson Mandela Day
The UN General Assembly has declared July 18 “Nelson Mandela International Day” to mark the
South African anti-apartheid leader's contribution to peace. A resolution adopted by consensus by
the 192-member world body calls for commemorations every year, starting on July 18, 2010,
Mandela's birthday, to recognise the Nobel Peace Prize laureate's contribution to resolving conflicts
and promoting race relations, human rights and reconciliation.

Mandela led the fight against apartheid in South Africa as head of the African National Congress'
armed wing. He was convicted of sabotage and other crimes and served 27 years in prison. When
freed in 1990, he helped lead South Africa's transition toward democracy.

DISCOVERY
ONGC finds Uranium in Assam
Oil exploration firm Oil and Natural Gas Corporation (ONGC) has stumbled upon a reserve of
uranium while carrying out exploration work at the Borholla oilfield in Jorhat district. This is the first
time that uranium traces have been found in an Assam oilfield although other north-eastern States
like Meghalaya have rich reserves.

Surveys conducted by the atomic energy department indicate there could be up to 10,000 tonnes of
uranium in and around Domiasiat, about 150 km west of Meghalaya capital Shillong, the area
considered to have the largest sandstone-type deposits in India.
Spurred by the recent findings, ONGC is now contemplating setting up a nuclear power
plant if its current collaboration with Uranium Corporation results in the discovery of
uranium in Assam.

ONGC Assam's oil production is now about 1.2 million tonnes annually. Assam has over
1.3 billion tonnes of crude oil and 156 billion cubic metres of natural gas reserves, of
which about an estimated 58 percent is yet to be explored. India produces about 30
million tonnes of crude oil annually, with Assam accounting for about five million
tonnes. Apart from ONGC, Oil India Ltd (OIL) is the other major exploration firm
operating in the north-eastern State.

EXPEDITIONS
Circumnavigating the world
Commander Dilip Dhonde of the Indian Navy, the first Indian to attempt to
circumnavigate the world alone, reached Christchurch in New Zealand on November
21, 2009, after covering 9,000 nautical miles on Mhadei, the Indian Naval Sailing
Vessel.

Dhonde, 42, embarked on the solo circumnavigation of the world on August 19, 2009,
from Mumbai. Less than 300 people the world over have succeeded in this endeavour
till date, with this being the first attempt for an Indian.

Mhadei, during her voyage of over 21,600 nautical miles (38,880 km) under sail will
take on the exceptional winds and swell which are prevalent especially below 60
degree south latitude, called the Screaming 60s.

This feat is often compared to conquering of Everest (the highest peak in the world),
yet ironically is one that requires greater mettle and much longer time. The perils of
the capricious sea and the vagaries of the unpredictable weather in a lonely sail boat
become the canvas where this Herculean challenge to the human spirit unravels.

Mhadei will sail for approximately nine months and will be stopping at only four ports—
Fremantle (Australia), Christchurch (New Zealand), Port Stanley (Falkland Islands) and
Cape Town (South Africa) before returning to Mumbai.

There are four pre-requisites to qualify for a circumnavigation voyage. First, it should
start and end in the same port, crossing all meridians of longitude at least once and
the equator at least twice. Second, the distance covered should be more than the
length of a meridian, 21,600 nautical miles. Third, the boat should not pass through
any canals or straits, where use of engines or towing would be unavoidable. Fourth,
the boat should round the three Great Capes—Cape Leeuwin (Australia), Cape Horn
(South America) and Cape of Good Hope (Africa).
N-POWER
18th plant in India begins operation
India’s nuclear programme crossed a milestone on November 24, 2009, with fifth unit
of the 220 megawatt Rajasthan Atomic Power Project (Raps-5) attaining criticality.
With this, the number of operating nuclear power reactors in India has gone up to 18,
increasing the total atomic power generating capacity from 4,120 MW to 4,330 MW.
Attaining criticality in the jargon of the atomic scientists means the start of self-
sustaining nuclear fission chain.

PERSONS
Joshi, Prabhash
Noted Hindi journalist, he died on November 6, 2009. He was 72. A Gandhian at heart,
Joshi started his career in journalsim from Nai Duniya in his hometown Indore. He was
earlier involved with the Sarvodaya movement.

The launch of Jansatta by him in 1983 created reverberations in the world of Hindi
journalism when he rejected the existing pedantic style of Hindi writing to introduce
the colloquial writing style, later adopted by many a publication. He retired as editor of
Jansatta in 1995 and since then was a consulting editor of the paper and wrote his
weekly column for the paper.

PLACES
Tawang
Located in Arunachal Pradesh, this Buddhist monastery town was in news due to visit
of Tibetan spiritual leader Dalai Lama on November 7, 2009. China had protested
against visit of Dalai Lama to Arunachal Pradesh as China considers the area as
disputed territory and lays claim to it.

Tawang was once a part of Tibet. In 1914, the MacMahon line was drawn by the British
and Tawang became a part of India. Tawang came under effective Indian
administration on February 12, 1951, when Major R. Khating led Indian Army troops to
relocate Chinese squatters. India assumed sovereignty of the territory and established
democratic rule therein.

During the Sino-Indian war of 1962, Tawang fell under Chinese control. The valiant
last stand of Mahavir Chakra awardee Jaswant Singh Rawat took place in Tawang.
After the withdrawal of Chinese troops, Tawang once again came under Indian
administration. In recent years, China has occasionally voiced its claims on Arunachal
Pradesh, especially Tawang, and Chinese troop incursions continue to occur frequently.
India has rebutted the claims by Chinese government.
Today, Tawang serves as a centre for tourist attractions, thanks to the well-preserved
beauty of the Tawang Monastery.

Belgaum
Aerospace and Engineering major QuEST Global has launched India’s first aerospace
special economic zone (SEZ) at Belgaum, Karnataka, on November 14, 2009, for
development and manufacture of aerospace precision engineering products. The SEZ
has come up on a 300 acre site at an investment of Rs 150 crore.

Rome
A UN summit on the plight of the planet’s one billion hungry was held in Rome in
November 2009. Pope Benedict XVI was among the inaugural speakers at the meeting
at the Rome headquarters of the Food and Agriculture Organisation.

Darrah National Park

Rajasthan will soon have its third tiger reserve after Ranthambore and Sariska. The
new tiger reserve will come up at Darrah National Park, 50 km from Kota. The National
Tiger Conservation Authority (NTCA) has given a nod to the project and the first tiger
is likely to be relocated to Darrah by 2011.

At present, Darrah National Park is spread over an area of 250 sq km and is separated
from Ranthambore by another 250 sq km stretch which houses Ramgarh Vishdhari
Wildlife Sanctuary. The park has three wildlife sanctuaries—Darrah, Chambal and
Jaswant Sagar. The park has another positive side—a permanent source of water from
the Chambal Basin.

Meanwhile, with an aim to protect and increase tiger population, the state government
has finalised a proposal to form a tiger conservation foundation. The foundation, which
will also deal with rehabilitation of the big cats to reserve parks with lesser population,
is being set up as per the provisions of the Wildlife Conservation Act.

PROJECTS
India targets 1000 MW solar power in 2013
India is all set to open a new front, with the Solar Mission under National Action Plan
on Climate Change, aiming to generate 1,000 MW of power by 2013. The country
currently produces less than 5 MW every year. In the first phase, between 2010 and
2013, the government is proposing to generate 200 MW of off-grid solar power and
cover 7 million square metres with solar collectors. By the end of the final phase in
2022, the government hopes to produce 20,000 MW of grid-based solar power, 2,000
MW of off-grid solar power and cover 20 million square metres with collectors.

Making sea water potable @ 7 paise/litre

Scarcity of potable water could soon be a thing of the past, at least in coastal and
island States. The Low Temperature Thermal Desalination System (LTTD) converts
saline seawater into potable water—that too for six to seven paise a litre! The first
plant set up at Kavaratti in the Lakshadweep archipelago has been converting
seawater into potable water for 10 paise a litre.

Three similar plants of one-lakh litre per day capacity are proposed to be set up at
Agatti, Androth and Minicoy in the Lakshwadeep Islands. The technology—based on
indigenously designed, developed and demonstrated desalination techniques by the
National Institute of Ocean Technology (NIOT)—uses warm surface sea-water, flash
evaporated at low pressure. The vapour is then condensed with cold deep-sea water to
get potable water.

A scheme is also being formulated for large-scale desalination units at coastal power
plants and the remaining three islands of Lakshadweep Islands on public-private
partnership basis.

Experts say global water consumption is doubling every 20 years—more than twice the
rate of human population growth. The world’s water use is expected to triple in the
next 50 years. Almost half of the world’s population lives in 263 international river
basins, but two-thirds of these basins have no treaties to share water. The world’s
population is already using about 54 per cent accessible freshwater. By 2025, the
human share will be 70 per cent. If per capita consumption of water continues to rise
at its current rate, human-kind could be using over 90 per cent of all available
freshwater within 25 years, experts say.

Kisan Vision Yojna

Kisan Vision Yojana is an ambitious project of Indian Railways to set up cold chain
facilities across the country for fresh fruit and vegetables. The first pilot project is
being set up at Singur in West Bengal. The aim of the project is to provide linkage
between production clusters with consumption centres.

As much as Rs 35,000 crore worth of farm produce is wasted every year due to lack of
proper storage. If this pilot project is successful, Railways will build similar perishable
cargo centres at Nashik, Azadpur Mandi in Delhi, New Jalpaiguri, Dankuni and
Mecheda.

Container Corporation of India (CONCOR), which operates inland container depots for
Railways, will provide container facilities between production clusters and consumption
points. CONCOR’s subsidiary, Farm and Health Enterprises will provide infrastructure
support to these facilities.

RESEARCH
DRDO developing herbal shield for N-war
In the backdrop of nuclear, biological and chemical (NBC) weapons being a major
factor in the geo-political security environment, the DRDO is developing herbal
protective measures to guard the fallout of the use of such weapons. This is the first
such project of its kind in the world where extracts from herbal plants are being used
to produce agents to protect humans against radioactivity. Besides military
applications, the spin-off of this project will also have spin-offs in civilian sectors like
nuclear medicine and radiology.

At present there is only one chemical agent available to combat radioactivity, but that
is very toxic and hence dangerous to handle. The herbal products would counter this
drawback. Extracts of two plants, podophylum hexandrum and the well-known
seabuckthorn, are being used in the project being undertaken by three different DRDO
laboratories at Leh, Delhi and Gwalior.

The plants grow only in high altitude areas above 9000 feet and are native only to the
Himalayas. Efforts are on to cultivate the plants in the DRDO laboratories to ascertain
their characteristics and their ability to adapt to other geographical conditions for
mass-scale production.

Some other herbal products developed by the DRDO for use by the armed forces
include UV protection agents, high energy food items and insect repellents. So far,
NBC warfare and protection items worth about Rs 800 crore, developed by the DRDO
and manufactured by the industry, have been supplied to the armed forces. These
include sensors, detection systems, individual and collective protection systems and
medical equipment.

MISCELANEOUS
Goods and Services Tax (GST)
A comprehensive Goods and Services Tax (GST) has been proposed and the Centre
and the Empowered Committee of State Finance Ministers. GST is to have two
components; one levied by the Centre (central GST or CGST) and the other by States
(State GST or SGST). The regime is to be implemented through multiple statutes, one
for CGST and the rest for the respective SGST statutes. While there would be some
flexibility for each State in formulating its SGST regime, the basic features related to
chargeability, definition of what’s taxable, valuation, classification will be uniform and
consistent.

The dual GST (CGST and SGST) would be imposed on all transactions in goods and
services except exempted transactions and certain goods and services kept outside the
GST’s purview. The threshold limit for CGST is proposed as Rs 1.5 crore for goods and
Rs 10 lakh for services. The threshold for SGST is proposed as a cumulative total of Rs
10 lakh for both goods and services.

GST will subsume central levies like central excise duties, service tax, additional
customs duty, special additional customs duty, surcharges and cesses and State levies
such as State-VAT/sales tax, entertainment tax, luxury taxes, taxes on lottery, betting
and gambling, State cesses and surcharges and entry tax (not including octroi and
local government levies).

Taxes on alcohol, certain petroleum products (viz fuels); octroi and similar levies at
local authority level will not be covered in GST.

The GST model has taken the conflicting needs and concerns of States and Centre into
consideration. However, this has diluted the vision of a single GST regime in India and
may, therefore, achieve only a part of the objectives and benefits available under a
single GST model. There is also a significant risk that if the present GST model is not
implemented properly after taking into account the needs of trade and industry, it may
be as complex as the existing indirect tax regime.

Language issue and the Indian Constitution

Article 343 of the Constitution and the Official Languages Act says that the official
language of the Union will be Hindi. However, the attempt to adopt Hindi as the official
language was strongly opposed by several non-Hindi speaking States, especially Tamil
Nadu, which erupted in violent protests leading to a compromise in allowing the use of
English also for official purposes. Thus, the Constitution and the act allowed English to
be used for transaction of business in Parliament, by Centre and States and for certain
purposes in High Courts for 15 years. Later, the act was amended in 1967 to allow
continuation of English for official purposes.

Originally, the Constitution listed fourteen languages—Assamese, Bengali, Gujarati,

Hindi, Kannada, Kashmiri, Malayalam, Marathi, Oriya, Punjabi, Sanskrit, Tamil, Telugu,
and Urdu—in Eighth Schedule, in 1950. Since then, the list has been expanded thrice,
once to include Sindhi, second time to include Konkani, Manipuri and Nepali and yet
again to add four more languages—Bodo, Santhali, Maithili and Dogri—bringing total to
22 Scheduled languages.

The three-language formula recommends the study of a modern Indian language,

preferably a south Indian language, apart from Hindi and English in Hindi-speaking
States and the study of the regional language along with Hindi and English in non-
Hindi speaking States.
 November NTERNATIONAL AFFAIRS 2009

AFGHANISTAN
Karzai elected President
On November 1, 2009, Afghanistan's Presidential challenger announced he would not participate in the run-off election because
his demands for measures to prevent fraud were rejected. He stopped short of calling on his supporters to boycott the balloting.

Abdullah made no mention of agreeing to take part in any future unity government with President Hamid Karzai, which the US
and its international partners believe is the best hope for curbing the Taliban insurgency.

In an emotional speech, Abdullah said he did not believe a free and fair election was possible without changes in the leadership
of the electoral commission, which ran the fraud-marred first-round ballot on August 20, 2009. Abdullah said the Afghan people
should not accept results of a ballot run by the current group.

A run-off was ordered after the UN auditors threw out nearly a third of Karzai's votes in the first round ballot, dropping him
below the 50 per cent threshold for victory in the 36-candidate field.

Afghanistan's election commission declared Hamid Karzai elected as President on November 2, 2009 after it called off a run-off
following the withdrawal of his only rival, Abdullah Abdullah. With this move the political uncertainty in Kabul came to an end.

US officials hope to help restore legitimacy to Karzai's government by encouraging him to build a reform-minded government that
is ethnically representative and includes Abdullah's followers. US Secretary of State Hillary Rodham Clinton released a statement
that hinted at Abdullah's group having some voice in the government. She praised Abdullah for running a "dignified and
constructive campaign that drew the support of Afghan people across the nation. We hope that he will continue to stay engaged
in the national dialogue and work on behalf of the security and prosperity of the people of Afghanistan."

Hamid Karzai was sworn in for a second term as Afghan President on November 19, 2009. The 51-year-old has pledged to fight
corruption and take control of his country's security before his five-year term ends.

His inauguration came against the backdrop of an ever more deadly Taliban insurgency, doubts over his legitimacy after the
tainted election, and demands from Western donors that he address rampant corruption and mismanagement.

BANGLADESH
Hindu property confiscated during 1965 war to be returned
On November 2, 2009, the Bangladesh cabinet approved a proposed law to return Hindu property, which were confiscated during
the 1965 Indo-Pak war, when the country was eastern wing of Pakistan, ending a major violation of the rights of minorities in the
country.

The proposed law is meant to redress the long-disputed law of the Pakistani era, which was widely criticised as a major violation
of the minority rights. During the Pakistan period, the law was called as the Enemy Property Act.

The then Pakistani regime enacted the law to confiscate the property of the Hindu families who fled the country when the India-
Pakistan war broke out in 1965 while the post-independent Bangladesh government renamed it as the Vested Property Act 1974.

Officials familiar with the process said under the amended proposal, the government would publish lists of “returnable and non-
returnable vested property” within a certain period of times while the claimants could also seek review about “non-returnable”
property. Under the law, government committees at district and upzila or sub-district levels would settle disputes regarding the
disputed property.

The Awami League had enacted the law to return the minority property at the fag end of its previous 1996-2001 tenure setting a
two-year implementation deadline but the subsequent Bangladesh Nationalist Party (BNP) sat on it exposing it to a natural death.
The 2001 law stipulated that land that was seized be returned to its original owners, provided that the original owners or their
heirs remained resident citizens.

Mujib’s murderers convicted after 34 years

On November 19, 2009, Bangladesh's Supreme Court rejected the appeals of five former army officers and confirmed death
sentence on seven others, who are living abroad, for killing the country's founding father Sheikh Mujibur Rahman and his family
members 34 years ago.

A five-judge bench of the apex court delivered the judgement amid tight security on the court premises and key establishments
across the country, bringing to an end a long court battle on an emotive issue.

Sheikh Mujib, officially referred to with the honorific Bangabandhu, who was then the country's President, was killed in a coup on
the morning of August 15, 1975, less than four years after he led a movement that culminated in the emergence of Bangladesh
after its violent separation from Pakistan.

In its judgement, the apex court ruled that the incidents of August 15, 1975, were “a simple murder and it was not a result of
mutiny”. Also gunned down or bludgeoned in three separate attacks were most of Mujib's family members, close relatives,
political associates, Mujib's security chief and personal staff.

Referred to as “killer majors”, since most of them were junior officers, the condemned men had later openly claimed to have
carried out the killings in what they described as national interest.

Prime Minister Sheikh Hasina, Mujib's elder daughter and one of the two survivors, revived the court trial after she returned to
power in January 2009. Sheikh Rehana, the other surviving daughter of Sheikh Mujibur Rahman, in her reaction, said it was
important that the verdict had been upheld by the Supreme Court.

EUROPEAN UNION
Belgian PM chosen first President
On November 19, 2009, European Union leaders have named Belgian Prime Minister Herman Van Rompuy as the bloc’s first
President and appointed Briton Catherine Ashton as its foreign affairs chief.

A consensus was reached at a summit in Brussels after Britain dropped its insistence that former British Prime Minister Tony Blair
should become President, ending weeks of deadlock and opening the way to agreement on Van Rompuy.

The appointments are intended to bolster the EU’s standing and help it match the rise of emerging powers such as China
following the global economic crisis.

Van Rompuy, 62, and Ashton, 53, are low-profile compromise candidates little known outside the EU and at least initially will not
have the clout in foreign capitals that an established statesmen such as Blair would have had.

PAKISTAN
Zardari hands over ‘nuke button’ to Gilani
Pakistan's embattled President Asif Ali Zardari has transferred control of the country’s nuclear arsenal to Premier Yousuf Raza
Gilani and said he intended to strip the Presidency of more powers soon.

The President gave up his control over the nuclear arsenal by re-promulgating the National Command Authority Ordinance and
amending it, a move described as a “giant leap forward to empower the elected Parliament and the Prime Minister.”

Zardari also said in an interview with a TV news channel that the 17th Constitutional amendment which gives President sweeping
powers to dismiss the Premier and dissolve Parliament will also be done away with soon.

Meanwhile, a controversial law which scrapped graft cases against Asif Ali Zardari and his key allies expired on November 28,
2009, but the Pakistan President felt it will not affect him as the Constitution provides “indemnity” to the person holding the top
post in the country.

PHILIPPINES
Emergency imposed after massacre
On November 24, 2009, Philippines President Gloria Macapagal Arroyo placed two southern provinces and a city under emergency
rule after 24 people were killed in the worst-ever election related violence in the country.
The orders were issued as troops, using shovels and bare hands, dug up hastily covered graves on a grassy hillside in Maguindanao
to recover the victims of the massacre. Some of the dead men had their hands tied behind their back and one of the women was
pregnant. Eight of those found dead were local journalists. They were part of a group of 40 people abducted by gunmen when on
their way to file a candidate's nomination to contest the governorship in elections May 2010.

Elections in the Philippines are usually marred by violence, especially in the south, where security forces are battling communist
rebels, Islamic radicals and clan rivalries.

SWITZERLAND
Voters approve ban on minarets
Swiss voters approved a ban on construction of new minarets on November 29, 2009, a surprise result that is certain to embarrass
Switzerland’s neutral government and could also damage its economic ties with Muslim States.

About 57.5% of voters and all but four of the 26 cantons approved the proposal in the nationwide referendum, which was backed
by the right-wing Swiss People’s Party (SVP). The government said it would respect the people’s decision and declared
construction of new minarets would no longer be permitted. “Muslims in Switzerland are able to practise their religion alone or
in community with others and live according to their beliefs just as before,” it said in a statement. Justice Minister Eveline
Widmer-Schlumpf said the outcome of the vote reflected a fear of Islamic fundamentalism, but the ban was “not a feasible
means of countering extremist tendencies”.

Both the government and Parliament had rejected the initiative as violating the Swiss constitution, freedom of religion and the
nation’s cherished tradition of tolerance. The UN human rights watchdog had also voiced concerns.

The SVP, Switzerland’s biggest party, and Federal Democratic Union gathered enough signatures to force the vote on the
initiative opposing the “Islamisation of Switzerland”. The move has stirred fears of violent reactions in Muslim countries and an
economically disastrous boycott by wealthy Muslims who bank and vacation in Switzerland.

The right-wing campaign to outlaw minarets on mosques has received an unlikely boost from radical feminists arguing that the
tower-like structures are “male power symbols” and reminders of Islam’s oppression of women. Julia Onken, a prominent
feminist, warned that failure to ban minarets would be “a signal of the State’s acceptance of the oppression of women”.

November WORLD ECONOMY 2009

G-20 launches framework to boost global economy

The finance ministers of G-20 nations have agreed on a timetable for the new framework for
balanced and sustainable growth of the global economy, but made a little progress on financing
efforts to reduce global warming.

The world’s leading developed and emerging economies committed to have peer review and
“more specific policy recommendations” in place by November 2010. The Finance Ministers,
during the two-day meeting at St Andrews in Scotland, on November 8, 2009, hoped that if all
countries put political weight behind the negotiations over the next year, the world can
recover without developing the huge trade and financial imbalances of the past decade.

But there was no agreement on a specific set of common objectives, nor a mechanism to
resolve disputes. On the climate change issue, the Finance Ministers agreed only to keep
working for an ambitious outcome at meeting in Copenhagen but could not agree on the
amount of money developed countries will offer to poorer countries to help them reduce their
carbon dioxide emissions.

The meeting was also overshadowed by a dispute about the possibility of a global tax on
financial transactions. Addressing the meeting, British Prime Minister Gordon Brown floated the
idea of such a tax would help banks to pay for the insurance they receive from taxpayers.
Within hours of the suggestion, the idea appeared still-born when US Treasury Secretary Tim
Geithner said: “A day-to-day financial transaction tax is not something we are prepared to
support.” But some of the other measures mentioned by Brown—an insurance fee to reflect the
risk of some banks, a pre-funded pool of money to support orderly bank bankruptcies and
contingent capital arrangements-have more international support. The US is supportive of
efforts to ensure banks cannot rely on taxpayers to bail them out in future.

Eurozone pulls out of recession

Europe's deepest recession since the second world war has officially ended after the world's
biggest single trading bloc joined Japan and the United States in returning to growth. Both the
16-nation eurozone, and the 27-nation European Union as a whole, expanded their economies
in the third quarter, with a 0.4 per cent increase in the single currency area and a 0.2 per cent
rise across the bloc as a whole.

But despite exiting five quarters running of economic retreat, analysts said that the
improvement is unlikely to be robust enough to allow governments to end State support
measures, particularly with unemployment continuing to rise.

The eurozone economy had shrunk by 0.2 per cent between April and June after a record
collapse of 2.5 per cent in the first three months of 2009. But growth of 0.7 per cent in
Germany, Europe's most powerful economy, and 0.3 per cent in France, in the third quarter lay
behind the improvement.

Britain, with a 0.4 per cent contraction and Spain, with a 0.3 per cent decline, contributed to
the lower figure for the EU as a whole.

The European figures compare with a 0.9 per cent improvement in third-quarter economic
output in the United States, with Japan having already exited from recession in the second
quarter with 0.6 per cent growth.

Hoarwd Archer, the chief economist at IHS Global Insight, poured some cold water on the news
when he said the the emergence into daylight came "at a trot rather than a canter".
Cautioning that "consumer spending likely saw little or no growth," Archer warned that the
recovery "could well lose momentum for a time in 2010 before growth starts to gradually pick
up again".

But he forecast overall eurozone growth of one per cent in 2010. Clemente De Lucia of BNP-
Paribas, a French bank, said the rebound was due mainly to the industrial sector and warned
that the recovery "might fade in 2010" once the impact of schemes, such as help for boosting
new car sales, was fully withdrawn. He also pointed to high unemployment, running at more
than 22 million at the last count across the EU, acting as a brake on expansion for some time
yet.

OECD doubles 2010 forecast

The Organisation for Economic Cooperation and Development has doubled its growth forecast
for the leading developed economies in 2010 and predicted a further acceleration in 2011 as
China powers a global recovery.

The economy of the group’s 30 member countries will expand 1.9% in 2010 and 2.5% in 2011,
the Paris-based organisation said in a report. Output will contract 3.5% in 2009. The OECD,
which advises members on economic policy, forecast 2010 growth of 0.7% in June.

But the recovery will be marred by high unemployment and huge government debt across the
industrialised countries, the OECD said. Central banks and governments in major Western
economies should prepare for a gradual upwards shift in ultra-low interest rates and for fiscal
consolidation once recovery is stronger, but they will only need to move in late 2010 at the
earliest given that inflation is so low.

Output in the OECD economies will only return to the level achieved in the first three months
of 2008 in the third quarter of 2011, underlining the damage done by the banking crisis.

The OECD gave 2011 growth forecasts for the first time. The US will grow 2.8%, the euro area
1.7% and Japan 2%. The Chinese economy will expand 9.3%, it said. The global growth forecast
includes emerging giants China, Brazil, India and Russia with the mostly industrialized
economies of its own 30-country membership and in all covers some 80% of world output.

The OECD said it expected world trade to grow 6.0% in 2010 and 7.7% in 2011 after a plunge of
12.5% in 2009. China and India are poised to accelerate due to strong stimulus measures, the
OECD projected.

The Paris-based group hiked its growth forecast for China to 9.3% in 2009 and 10.2% in 2010. In
March, it projected China's growth at 6-7% in 2009. For India, the OECD boosted its growth
forecast to 6.1% in 2009 and 7.3% in 2010, rising to 7.6% the following year. The OECD, in
March, projected 4.3% expansion for India in 2009. India's recovery appeared to be only
“modestly hampered” by the driest monsoon in nearly four decades and economic data
suggested the growth “momentum is strengthening,” the OECD said. But a resurgence of
inflationary pressures pose a “key challenge” to Indian policymakers in deciding when to
withdraw stimulus in order to tackle the large public deficit, it said.

Dubai rattles global scrips with its woes

Global markets from Sydney to Sao Paulo trembled on November 26, 2009, on fears that
Dubai’s attempts to reschedule loans might trigger a fresh round of financial troubles in a
world just emerging from the worst economic crisis since the 1930s and which may be
amplified in India as thousands of expats stare at job losses and reduced trade.

India, which gets nearly a quarter of its remittances from the United Arab Emirates and has
lakhs of labourers working in the region, may be worse off than most other nations if the crisis
escalates into a full-blown one like the Russian or Argentinian crises of the past.

Indian shares and the rupee fell in sync with the rest of the global markets where investors are
fleeing for safety after Dubai World, the government investment company with $59 billion of
liabilities, sought to delay repayment on much of its debt. Investors believe that there could be
more trouble spots in emerging markets after Vietnam devalued its currency and raised rates.
The Bombay Stock Exchange’s Sensex fell 2% to 16,854.95, and the rupee fell 24 paisa to 46.55
against the dollar. The MSCI Emerging Markets Index lost 1.4%.

Dubai, which borrowed $80 billion in a four-year construction boom to transform its economy
into a regional tourism and financial hub, suffered the world’s steepest property slump in the
global recession. Home prices fell 50 percent from their 2008 peak, according to Deutsche Bank
AG. Banks around the world have written off more than $1.7 trillion as the credit crisis trashed
the value of their assets.

Dubai World’s lenders include Credit Suisse Group AG, HSBC Holdings, Barclays, Lloyds Banking
Group and Royal Bank of Scotland Group.

ENVIRONMENT
China announces ambitious emission caps
Green NGOs were elated after China announced ambitious cuts in the carbon intensity of its
economy by 2020 in a major boost to the global effort to tackle climate change. China
announced a 40-45 percent reduction in the carbon intensity from the business-as-usual
scenario by 2020. Carbon intensity measures the amount of carbon dioxide—the main
greenhouse gas that is causing global warming—emitted per unit of industrial output. India's
carbon intensity is one of the lowest among emerging economies.

International NGO Greenpeace also welcomed China's announcement but said it was not
enough. "Given the urgency and magnitude of the climate change crisis, China needs stronger
measures to tackle climate change," said Ailun Yang of Greenpeace China. "This is a significant
announcement at a very important point in time. But China could do more."

Since 2007, China is the world's largest emitter of greenhouse gases, though almost all the
carbon dioxide in the atmosphere now has been put there by developed countries since the
start of the Industrial Age.

Yang noted that the announcement by China is yet another commitment for the climate coming
from a major developing country ahead of the UN Copenhagen Climate Summit. "This is another
challenge to the industrialised world, particularly the US, which has just announced an
inadequate emissions reduction target of only 4-5 percent by 2020."

The Intergovernmental Panel on Climate Change—a grouping of over 2,500 scientists from
around the world—has said the developed world should cut emissions by at least 25-40 percent
below 1990 levels by 2020 and reduce 80-95 percent by 2050.

For China, a low carbon path is a national priority and a sure way to keep up its economic
tempo. China can ill-afford to let ‘invisible’ carbon denominated process and production
methods (PPMs) standards shackle its export offensive.

More than India, it is China that should be worried about the current efforts to re-interpret
Article XX (e) of GATT to keep out ‘goods based on carbon intensive processes’. In reality,
China has been under greater pressure to stave off the ‘climate related threat’ from the WTO
window. By sending a ‘concrete’ signal of commitment to emission intensity reduction, the
People’s Republic is doing its best to keep the trade dragon from getting into the FCCC fold.

There could be an interpretation that the Chinese concession is an implicit acceptance of

NAMA. Given the fact that China is still coal dependent and looks towards safe and cost-
effective carbon capture and storage (CCS) technologies, it does not make sense for it to
accept NAMA commitments without quid pro commitments on the technology transfer front. It
is important that India and China have a concerted position on this issue.

Earlier in the month of November, Brazil had offered to reduce its emissions if it was provided
international funding to control deforestation of the Amazonian forests. The move was
interpreted by some as a sell-out to industrialised countries. And, now India faces the
challenge of how to escape being seen as a global hurdle.

The Chinese move came a day after the US administration, that held out for long, announced
that it would offer a target of reducing its greenhouse gas emissions "in the range of" 17% by
2020 as compared to 2005 levels. When converted to benchmarks set under Kyoto Protocol, this
works out to 4% reduction below 1990 levels—almost seven times less than what the EU has
offered and less than 1/10th of what the UN IPCC requires industrialised countries to do to
check catastrophic climate change.

One senior official said: "China’s offer are not absolute reductions, please note, and they are
purely voluntary, China has not offered them as a commitment towards international compact.
This is along lines that China had informed us of. But they leave a positive impression
internationally." In fact, the Chinese are aiming to earn goodwill without doing much. The
industrialized countries are obliged under the existing UN treaty to reduce their emissions by
absolute levels below a fixed benchmarked year. China, in comparison has offered a purely
voluntary reduction in its carbon intensity. The carbon intensity target also provides enough
leverage for ‘creative accounting’ in measuring success of targets.

NUCLEAR PROLIFERATION
Chinese N-shopping mall helped Pakistan
China supplied Pakistan with enough weapons-grade uranium for two atomic bombs in 1982 and
continued to help Islamabad out with its nuclear programme, according to a report in The
Washington Post.

Outing China as a nuclear proliferator, the report, which sourced the narrative from accounts
written by disgraced Pakistani nuclear scientist A.Q. Khan, said that a Pakistani military C-130
left the western Chinese city of Urumqi with the “highly unusual cargo" in 1982.

That China supplied Pakistan with nuclear know-how has always been suspected, but this is the
first time that a detailed account of how it took place has come out and that too straight from
the accounts of A.Q. Khan. The uranium transfer was reportedly part of a secret nuclear deal
approved years earlier by Mao Zedong and Prime Minister Zulfiqar Ali Bhutto in the 1976, four
years after India tested its first nuclear weapon.

But it was realised only during the time of Zia ul-Haq, who after taking power and hanging
Bhutto was struggling under rumours of a pre-emptive strike by India. So Khan and a Pakistani
general were sent to Beijing "to borrow enough bomb-grade uranium for a few weapons."
Chinese leader Deng Xiaoping gave the approval and Khan and his team flew aboard a Pakistani
C-130 to Urumqi where Khan says they enjoyed barbecued lamb while waiting for the Chinese
military to pack the small uranium bricks into lead-lined boxes to be flown to Islamabad.

“Upon my personal request, the Chinese Minister . . . had gifted us 50 kg [kilograms] of

weapon-grade enriched uranium, enough for two weapons,” Khan wrote in an 11-page
narrative of the Pakistani bomb programme that he prepared after his January 2004 detention.
“The Chinese gave us drawings of the nuclear weapon, gave us 50 kg enriched uranium,” he
said in a separate account sent to his wife several months earlier. China in effect supplied a
"virtual do-it-yourself kit that significantly speeded Pakistan’s bomb effort."

Even before that, China sent Pakistan 15 tons of uranium hexafluoride (UF6), a feedstock for
Pakistan’s centrifuges, whose designs Khan has stolen. But it was also a give and take with
Khan sharing Europe’s best centrifuge technology in the 1980s with the Chinese in an effort to
help China’s uranium-enrichment programme.

India votes against Iran on IAEA resolution

On November 27, 2009, India joined 24 other countries at the Vienna-based International
Atomic Energy Agency (IAEA) to vote against Iran on its nuclear programme. India’s censure was
based on IAEA director-general Mohammed El Baradei’s report on Implementation of the NPT
safeguards agreement in Iran which said all efforts to negotiate with Iran to address the
international community’s concern over its ‘clandestine enrichment programme’ has reached a
“dead-end.”

This was the third time that India has voted against Iran’s alleged clandestine nuclear weapons
programme at the IAEA, the last two occasions being in September 2005 and February 2006.
This decision had kicked off a massive political storm in the country. The Left parties, which
were offering critical outside support to the UPA government at that time, had come down
heavily on the ruling combine and accused it of being arm-twisted by the US into voting against
Iran.

The vote had also raised serious concerns within the ruling Congress, which feared that this
vote would erode its minority support base. Explaining New Delhi’s third vote on the governing
body resolution Vienna, External Affairs Ministry spokesperson said: “Our support for the
resolution was based on the key points contained in the Report of the Director General.”

The IAEA has come to the conclusion that Iran was not transparent about its nuclear
programmes and concluded that it was pursuing clandestine nuclear weapons programme. In
September, Iran confirmed the doubts about its weapons programme when it disclosed the
existence of a second uranium enrichment plant in Fordo, not very far from Tehran.

India, on its part, has been doing a tightrope walk on the sensitive issue. It has consistently
opposed Tehran on this issue in multi-lateral forums but continued to engage with Tehran
bilaterally. The reasons for this were explained by Prime Minister Manmohan Singh when he
pointed to the ancient civilization links between the two countries, New Delhi’s dependence on
Iran for energy and the presence of five million Indians living in Iran.

Continuing with its balancing act, India was quick to strike a conciliatory note after its censure
of Iran at Vienna. It pointed out that this resolution should not be used to renew punitive
action or new sanctions against Iran.

The latest resolution was backed by all five permanent members of the UN Security Council.
The three countries that opposed the anti-Iran IAEA resolution were Cuba, Venezuela and
Malaysia, while Pakistan, Afghanistan, Egypt, Turkey, South Africa and Brazil abstained from
voting.

Iran to build 10 new enrichment plants

On November 29, 2009, Iran announced plans to build 10 new uranium enrichment plants in a
major expansion of its nuclear programme—a clear show of defiance after the UN nuclear
watchdog rebuked Tehran over secret such work. The decision by hardline President Mahmoud
Ahmadinejad's government will further aggravate tensions between the Islamic Republic and
major powers seeking a diplomatic solution to a long-running dispute over Iranian nuclear
activities.

It may speed up discussions in the West about possible new sanctions on Iran over its repeated
refusal to halt uranium enrichment, which the US and its allies suspect is part of a covert bid to
develop nuclear bombs. Iran denies this.

The new enrichment facilities would be the same size as Iran's main enrichment complex at
Natanz.

INTERNATIONAL RELATIONS
Visit of US President to China
On November 17, 2009, in a delicate balancing act during his visit to China, US President
Barack Obama supported early resumption of talks between China and the Dalai Lama’s
representatives while describing Tibet as part of this country. Taking note of the sensitivities of
China and the exiled Tibetan leader, Obama, during his maiden visit to China as President,
said: “We did note that while we recognise that Tibet is part of the People’s Republic of China,
the US supports the early resumption of dialogue” between the Dalai Lama’s representatives
and Beijing.

Obama’s remarks came after his meeting with his Chinese counterpart Hu Jintao during which
the two sides discussed a host of issues including India-Pakistan relations, Iran’s controversial
nuclear programme, Afghanistan, terrorism and climate change.

The US and China agreed to work together to bring about stable and peaceful relations in all of
South Asia, Obama said during his joint briefing with Chinese president Hu Jintao in Beijing.
Hu, who spoke first, didn’t mention Pakistan or South Asia. This was a rare occasion when a US
president acknowledged that Beijing has a role to play in the India-Pakistan relationship. The
move, if serious, runs counter to predictions of US foreign policy experts that the US would not
acquiesce in a future Chinese hegemony in the region.

While the joint statement was met with silence by New Delhi, it infuriated officials in the
foreign office because it brought back nasty memories of another US-China joint statement by
Bill Clinton and Jiang Zemin on June 29, 1998. Then too, it was Clinton and Jiang, in what India
considered “offensive” language, scolding India and Pakistan for their nuclear tests. India had
reacted sharply then, buffetted by general international condemnation after the tests.

But latest statement cut at the heart of an Indian effort to build a relationship with the US
without China complicating the issue. The reality is perhaps that the joint statement was
drafted by Obama’s China officials who don’t read India’s sensitivities. But that it was allowed
to go through signals to many Indian strategists that Obama may be more than pliant to China,
giving it a role in a region where it’s bound to come into conflict with a country Obama says is
a strategic US partner, India.

SUMMITS
CHOGM
Commonwealth Heads of Government Meeting (CHOGM) was hosted in the city of Port of Spain
in the Republic of Trinidad and Tobago on November 27-29, 2009. The Opening Ceremony of
the Meeting included an address by Her Majesty Queen Elizabeth II, Head of the
Commonwealth.

The CHOGM is the supreme body of the Commonwealth. It is convened every two years to
review global, political and economic developments and to conduct a strategic overview of the
Commonwealth’s work in support of the interests of member countries.

The objective of this Summit was to engage leaders of the Commonwealth in discussing global
and Commonwealth issues and to agree upon collective policies and initiatives.

The leaders agreed to admit Republic of Rwanda as the 54th member of Commonwealth.

Climate change was a major topic of discussion at 2009 CHOGM, due to the proximity of the
meeting to the Copenhagen climate change summit, but also because many Commonwealth
States are particularly vulnerable to the effects of global warming.

The 53 member States of the Commonwealth called for an “internationally legally binding
agreement” on climate change to be agreed at the Copenhagen conference in December 2009.
Leaders also pledged support for a fund to help poorer countries tackle climate change.

Heads of government endorsed the Report of the Commonwealth Ministerial Action Group
(CMAG), covering the Group's deliberations in the period since last meeting in Kampala in
November 2007. They commended CMAG's work, which has contributed significantly to the
protection and promotion of the Commonwealth's fundamental political values in member
countries.

Heads of government also welcomed the reinstatement of Pakistan in the Councils of the
Commonwealth following the conduct of credible elections in the country in February 2008 and
the assumption of office by an elected, civilian government in April 2008. However, they
expressed deep concern at the further deterioration of the situation in Fiji Islands with regard
to its adherence to fundamental Commonwealth values, including the abrogation of the
Constitution in April 2009, ongoing restrictions on human rights, including freedom of speech
and assembly, and the Interim government’s decision to further delay elections until 2014.
They noted that these actions had led to the full suspension of Fiji from the Commonwealth on
September 1, 2009.

Heads of government once again acknowledged the threats posed by weapons of mass
destruction, especially nuclear weapons, and reaffirmed their commitment towards ridding the
world of these weapons. Recognising that the ultimate objective is general and complete
disarmament under strict and effective international control, Heads reaffirmed their
commitment to the non-proliferation of weapons of mass destruction, which should be
achieved in accordance with the United Nations Charter. Heads reaffirmed the rights of States
to nuclear energy for peaceful uses in conformity with their international obligations. They also
noted the ongoing efforts towards the negotiation of a comprehensive Arms Trade Treaty (ATT)
in respect of conventional weapons, and the proposed ATT conference to be held in 2012. They
called for the finalisation of a robust and comprehensive ATT based on consensus.

CHOGM reaffirmed unequivocal condemnation of terrorism in all its forms and manifestations,
committed by whomever, wherever and for whatever purposes, as criminal and unjustifiable.
They reiterated that acts of terrorism cannot be justified or legitimised by any cause or
grievance whatsoever.

Continuing need for comprehensive efforts at all national and international levels to counter
terrorism, including efforts to build respect and understanding among peoples was stressed.
The Heads also emphasised the need to conclude negotiations on a Comprehensive Convention
on International Terrorism on a priority basis, preferably during the Sixty-Fourth Session of the
UN General Assembly and called upon all member States to accede to the UN Counter-
Terrorism Conventions and Protocols, and to effectively implement these as well as the UN
Global Counter-Terrorism Strategy and relevant Security Council Resolutions, and to prevent
the use of their territories for the support, incitement or commission of terrorist acts in other
States.

Recognising that corruption in its various forms undermines good governance, public security,
respect for human rights and economic development, CHOGM urged member States which had
not already done so to consider becoming parties to the UN Convention against Corruption
(UNCAC), and to implement its provisions, including those addressing asset recovery, to help
them combat systemic corruption at both national and international levels.

Heads expressed their support for the commitment to avoid protectionism, and to strengthen
financial supervision and regulation. They emphasised the importance of renewing the contract
between financial institutions and the society they serve, and the need to ensure the sector
bears the full cost of the risk associated with their activities. They encouraged the IMF to
consider the full range of options in their review and welcomed the steps taken by many
countries to mitigate the impact of the economic crisis, and the fragile signs of growth in the
global economy. They expressed concern, however, that the social and economic impact of the
crisis would continue to affect a vast majority of the developing countries, particularly the
smallest and most economically vulnerable members of the Commonwealth, including LDCs and
SIDS.

Australia will host the 2011 CHOGM. Sri Lanka and Mauritius will host the 2013 and 2015
CHOGMs, respectively.

INTERNATIONAL TERRORISM
Italy arrests two for aiding 26/11 attacks on Mumbai
Tracing new links to the Mumbai carnage, a Pakistani father-son duo were arrested from Italy
for allegedly managing money transfer to finance phone communications of the attackers
following leads from Indian and US investigators.

The two men, who ran a money transfer agency, were arrested in an early morning raid from
the northern Italian city of Brescia, police said. The duo have been identified by the police as
Mohammad Yaqub Janjua, 60, and Aamer Yaqub Janjua, 31. They have been accused of aiding
and abetting international terrorism as well as illegal financial activity.

On November 25, 2008, a day before the attacks, they transferred $ 229 to activate an internet
phone account that was used by the attackers and their accomplices, said Stefano Fonzi, the
head of anti-terror police in Brescia.

The funds that enabled the terrorists to be in touch with their handlers in Pakistan were
transferred under the identity of another Pakistani man who had never been to Italy and was
not involved in the attacks, reports from Italy said. The two managed a money transfer agency
where it is reported to be a common practice to transfer funds using false identities. The
Italian police arrested the two men in an early morning raid in Brescia, the police said in a
statement.

Italian police started their investigation the following month after being alerted by Indian
authorities and the FBI that funds had been transferred from Italy.

Pak court names Zaki-ur-Rehman Lakhvi as 26/11 mastermind

In what is being seen as a clever move by Islamabad to bury LeT founder and Jamaat-ud-Dawa
chief Hafiz Saeed’s role as the prime strategist behind the 26/11 attacks, a Pakistani trial
court, while framing charges against seven accused on its soil, has instead named Zaki-ur-
Rehman Lakhvi as the mastermind.

Exactly a year after the Mumbai assault, on November 25, 2009, the special anti-terror court
set up in Adiala jail in Rawalpindi framed charges against all the seven accused in Pakistan’s
custody, reportedly confirming Lakhvi as the mastermind and Zarar Shah, Abu al-Qama, Hamad
Amin Sadiq, Shahid Jamil Riaz, Jamil Ahmed and Younas Anjum as handlers/facilitators. All
seven had pleaded not guilty. They have been reportedly charged under the anti-terrorism act
and the Pakistani penal law. The charges include providing training, financial support,
accommodation, equipment and communication gear to the 10 terrorists who had attacked
Mumbai, including the lone survivor Ajmal Amir Kasab, who is now in India’s custody.

Interestingly, the dossier submitted by India on the 26/11 investigations to Pakistani names JuD
chief Hafiz Saeed as the mastermind behind the Mumbai plot. Zaki-ur-Rehman, Zarar Shah, Abu
Qama and others, now facing trial in Pakistan for their involvement in the 26/11 attacks, were
only acting under the instructions of Saeed. Saeed is alleged to have personally overseen the
preparations and events leading up to the major assault on India’s financial capital. Senior
officials of the security establishment are obviously disappointed over the absence of any
reference by the Pakistani court to Saeed’s role in the 26/11 conspiracy. The assessment in
India is that the Pakistani court’s move, timed to coincide with the eve of the 26/11
anniversary, was essentially to exhibit to the world its “commitment” to punish the attacks’
perpetrators on its soil while ensuring a complete cover-up of Hafiz Saeed’s role as the key
conspirator.

INTERNATIONAL TREATY
Arms Trade and Transfer Treaty
On November 1, 2009, even as the crucial global Arms Trade and Transfers (ATT) treaty, which
seeks to regulate the $55 billion arms trade and promote democracy, found overwhelming
support from 153 member countries at the UN. India was among the 19 who abstained from the
meet. These 153 countries—including top arms suppliers like US, Britain, Germany and France—
supported a UN disarmament committee resolution which will lead into negotiations for the
treaty starting 2010.

While India may still take part in negotiations, the treaty in its present form was not in India’s
interest. Certain binding clauses on social issues like violation of human rights and restrictions
on arms sale expanding into controls on export of advanced technologies could work against
India.

The US under George Bush in 2006 had opposed the treaty but it came round to supporting it
under Barack Obama. The fate of the UN sponsored treaty still hangs in the balance as the list
of 19 who abstained includes China and Russia, as also Pakistan.

The proposed treaty calls upon States involved in arms trade to not violate human rights,
promote democracy and refrain from getting into any armed conflict. It also calls for ban on
sale of arms to countries which promote terrorism.

The fact that India is still dependent on conventional weapons and imports a large number of
these is another major concern. The proposed treaty will seek to set up export controls on
transfers of advanced weapons, thereby extending the present Western-inspired controls on
export of advanced technologies. This could impinge on the interests of India.

November 2009 SPORTS

ARCHERY
Asian Championship, 16th
Indian compound archers made history by clinching their first ever gold medal in the 16th Asian
archery championship at Bali. India also bagged two silver medals in the men’s recurve and
women’s compound sections, according to the Archery Association of India (AAI). The Indian trio of
C. Srither, Ratan Singh and Isiah R. Sanam edged past Iran 231-230 in a nerve-wrecking contest to
reign supreme in the compound section. The Indian men’s recurve team, comprising Rahul
Banerjee, Jayanta Talukdar and Mangal Singh Champia lost to Korea 219-222 in the summit clash
to settle for a silver medal. In the women’s compound team final India once again were beaten by
Korea as the trio of Jhanu Hansdah, Namita Yadav and Manjudha Soy had to be content with a
silver medal.

ATHLETICS
Airtel Delhi Half Marathon, 2009
Deriba Merga of Ethiopia retained his title, while Kenya’s Mary Keitany won the women’s event in a
race joined by over 30,000 participants.

Deepchand Saharan bettered 2008’s third-place finish to win in the Indian men category. Saharan
had won the inaugural Delhi Half Marathon in 2005. He shaved off 56 seconds from his 2008
performance to register his personal best at 1 hour 4 minutes.

The top honour in the Indian women’s section went to Sukanya Mall of Uttar Pradesh.

Asian Championship, 2009

China once again showed its supremacy in the continental athletics topping the medals tally (18
gold, 19 silver, 10 bronze) of 18th Asian Athletics Championships, held at Guangzhou, China. Japan
(12 gold, 5 silver, 5 bronze) finished second.

India, who sent a 60-strong squad, ended the five-day competition at third with 12 medals (one
gold, 4 silver, 7 bronze).

CHESS
Anand wins rapid four-game series
World Champion Viswanathan Anand tamed former World Champion Anatoly Karpov of Russia in
successive two encounters to win the rapid four-game chess series.

World junior girls (u-20) title

India’s Soumya Swaminathan won the title when she defeated Kubra Ozturk of Turkey in the 13th
and last round at Puerto Madryn (Argentina). The 20-year-old Woman Grandmaster tallied 10 points
in this under-20 tournament. D. Harika (girls) and Abhijit Gupta (open) had won the World junior
titles on India’s Independence Day in Turkey in 2008.

CRICKET
India-Australia One-day series
Australia won the fourth match of the series at Mohali by 24 runs to level the series. Chasing a
modest total of 250 runs in 50 overs, India got bundled out for 226.

Sachin Tendulkar scored a breathtaking 175 of 141 balls, but, chasing 351, India fell short by three
runs in the fifth match played at Hyderabad. In the process Australia seized a 3-2 lead in the seven
match series.

The sixth ODI at Guwahati was won by Australia by six wickets. The visitors thus took an
unassailable 4-2 lead in the seven-match series.

The seventh and final one-dayer between India and Australia at Mumbai was abandoned without a
ball being bowled due to heavy unseasonal rains in the wake of a cyclonic storm over the Arabian
Sea. The wash-out of the day-night encounter meant that Australia clinched the series with a 4-2
margin.

Strapping Australian all-rounder Shane Watson was awarded the man of the series in the seven-
match ODI rubber.

Bangladesh-Zimbabwe One-Day Series

Bangladesh took the fifth and final match by one wicket to win the series 4-1.

South Africa-Zimbabwe One-Day Series

South Africa defeated Zimbabwe by 45 runs in the first match. This was followed by a thumping
212-run thrashing of Zimbabwe in the second match.

South Africa-England Twenty20 series

Graeme Smith and Loots Bosman went on a six-hitting spree as South Africa gained a crushing 84-
run win over England in the second and final T20 international. Smith and Bosman shared a world
record opening partnership of 170 off 81 balls in a South African total of 241 for six, the second-
highest in T20 internationals. England, who won the rain-affected first match by just one run,
struggled to 157/8 in reply.

India-Sri Lanka Test series

Gautam Gambhir and Sachin Tendulkar hit opportune centuries as India came up with a spirited
batting display to salvage a draw in the first cricket Test against Sri Lanka.

Opener Gautam Gambhir conjured up yet another marathon innings of 114 runs, before Sachin
Tendulkar (100 not out) took the centre-stage to chase down yet another milestone of 30,000
international runs en route to his 43rd Test ton.

A dominant India took one-and-half sessions to complete the formalities and spank Sri Lanka by an
innings and 144 runs in the second Test at Kanpur to take a 1-0 lead in the three-match series.

This turned out to be India’s 100th Test victory in their 432nd outing. India became the sixth nation
to win 100 Test matches, following Australia (332), England (310), West Indies (152), South Africa
(120) and Pakistan (102).

This was also India’s biggest victory margin against the Lankans, in terms of innings. The previous
mark was their thrashing of the islanders by an innings and 119 runs in the 1994 Lucknow Test.

India is now the sixth team to record 100 Test wins. It took 432 Tests to get there, the slowest
among the 6 teams. The victories include 68 wins in 221 home Tests and 32 Tests in 211 ‘away’
matches.

Since 2000, India has won 39 out of 102 Tests. That includes 19 out of 56 Tests played abroad.
Before 2000, India had won only 13 of 155 Tests played abroad. M.S. Dhoni has won 7 and drawn 3
of the 109 Tests in which he has led India so far.

New Zealand-Pakistan Test Series

Riding on comeback star and man-of-the-match Shane Bond’s brilliant match figures of eight for
153, New Zealand defeated Pakistan by 32 runs in the first Test at Dunedin.

Australia-West Indies Test Series

Australia humiliated West Indies by an innings and 65 runs, within three days, to canter to victory
in the first Test in Brisbane. Interestingly, Australia have not been beaten at Gabba ground for 21
years now, while the Windies notched up their ninth straight Test defeat Down Under.

South Africa-England One-Day series

England beat South Africa by seven wickets in the fourth one-day international at St George’s in
Port Elizabeth to lead the five-match series 2-1.

Tendulkar crosses 30,000 run mark

In yet another landmark in his illustrious 20-year-old career, Sachin Tendulkar became the first
cricketer to cross 30,000 runs in international cricket during the first Test against Sri Lanka, played
in Ahmadabad in November 2009. Tendulkar, who made his international debut in a Test against
Pakistan on November 15, 1989 in Karachi, crossed the milestone when he reached 35 in India’s
second innings.
Tendulkar ended his 160th Test in Ahmadabad sitting on 12877 runs, with 43 hundreds and 53 half
centuries at an average of 54.79. From the 436 one-day internationals he has played so far,
Tendulkar has scored 17178 runs with 45 hundreds and 91 fifties at an average of 44.50.

He scored 10 from the lone Twenty20 International he has played before voluntarily deciding not to
be part of the Indian squad in the shortest format of the game.

Record sixth wicket partnership

Mahela Jayawardene’s epic 275 in the first Test between India and Sri Lanka, played at Ahmedabad,
not only gave Sri Lanka a platform from where they could dictate terms in the Test, his sixth-wicket
stand of 351 with wicketkeeper Prasanna Jayawardene broke one of cricket’s longest-standing
records. Way back in 1936-37, Don Bradman and Jack Fingleton had put on 345 for the sixth wicket
for Australia against England in Melbourne, a mark that lasted 72 years until Ahmedabad on
November 11, 2009.

GAMES
Asian Indoor Games, 2009
The 2009 Asian Indoor Games were held in Hanoi, Vietnam in October-November, 2009. The Games
comprised of twenty sports, four demonstration sports, including the Shuttle Cock and Vovinam
martial arts offered by the host country.

China topped the medals tally, followed by Vietnam and Kazakhstan. India ranked seventh.

The mascot of the Games was the Ho Chicken, a distinctly Vietnamese rare breed of chicken.

HOCKEY
Asia Cup (Women), 7th
Indian team had to be satisfied with a silver medal after they went down 3-5 to China in an action-
packed final at Bangkok.

26th Indian Oil Surjit Tournament

Bharat Petroleum Mumbai clinched the title by defeating Indian Oil Mumbai 3-2. The tournament
was held in Jalandhar, Punjab.

TABLE TENNIS
Asian Championship, 2009
Asserting their supremacy, Chinese paddlers completed a clean sweep by clinching all the seven
titles, including men and women singles, in the 19th Asian Table Tennis Championships held in
Lucknow.
World number two Ma Long defeated compatriot Zhang Jike 4-2 to bag the men’s singles title, while
Ding Ning won the women’s singles by snatching a 4-3 victory over Li Xiaoxia.

1. What is the percentage upto which FDI in defense sector is allowed in

India?

a) 26%
b) 49%
c) 51%
d) 74%
e) 100%

2. The Open Market Operation (OMO) transactions of the RBI are meant to
regulate which of the following?

a) Inflation
b) Liquidity in economy
c) Borrowing abilities of the banks
d) Inflow of Foreign Direct Investment
e) Portfolio investments

3. Which of the following contributes the highest share of revenue earned

by the government of India?

a) Income Tax
b) Customs Duty
c) Excise Duty
d) Value Added Tax
e) Corporate Tax

4. Which of the following milestones was achieved by New Zealand captain

Daniel Vettori recently?

a) 2,000 runs and 200 wickets in Test Cricket

b) 3,000 runs and 300 wickets in One-Day Internationals (ODIs)
c) 3,000 runs and 300 wickets in Test Cricket
d) 2,000 runs and 200 wickets in One-Day Internationals (ODIs)
e) 4,000 runs and 400 wickets in Test Cricket
5. According to the target set by the government of India, the fiscal deficit
for the financial year 2009-10 should not exceed _____of the gross
domestic product (GDP).

a) 3.2 per cent

b) 4.2 per cent
c) 6.8 per cent
d) 7.4 per cent
e) 8.0 per cent

6. Which of the following statements about the recent Ashes series in

England is/are incorrect?

a) England beat Australia 2-1 to regain the five match Ashes series
b) Oval, Lord’s, Cardiff, Headingley and Edgbaston were the venues of the
five test matches
c) England’s Andrew J Strauss was the highest scorer while Australia’s
Benjamin W Hilfenhaus was the leading wicket taker in the series
d) The Compton-Miller Medal, which goes to the player who has had the
biggest impact on the series, went to Andrew Flintoff
e) Andrew Strauss was awarded England’s Man of the Series while Michael
Clarke was Man of the series for Australia.

7. Indian Readership Survey (IRS) and National Readership Survey (NRS) will
be merged to form a single survey. IRS is conduced by which of the
following?

a) Media Research Users Council

b) National Readership Studies Council
c) Indian Newspaper Society
d) Advertising Agencies Association of India
e) Audit Bureau of Circulation

8. Who has been named by Forbes magazine in its list of four ‘women to
watch’ in the next 12 months, recently?

a) Congress President Sonia Gandhi

b) Delhi Chief Minister Sheila Dixit
c) ICICI Bank CEO, Chanda Kochhar
d) Biocon CEO, Kiran Mazumdar Shaw
e) Both (3) and (4)

9. Vijay Kelkar was in news recently for having said that companies like
ONGC and RIL should be given freedom to fix natural gas prices that move in
tandem with changes in international crude oil prices. What designation
does Kelkar hold?
a) Chairman, Finance Commission
b) Chairman, Oil Industry Development Board
c) Petroleum Secretary
d) Director General of Hydrocarbons
e) Chairman, Competition Commission of India

10. Prime Minister Manmohan Singh has termed the 11th Five Year Plan as:

a) India’s health plan

b) India’s poverty eradication plan
c) India’s rural prosperity plan
d) India’s education plan
e) India’s equal opportunity plan

Answers to the above questions

1. a 2. b 3. e 4. c 5. c 6. d 7. a 8. c 9. a
10. d

Answer 2: Open Market Operations (OMO): In this case RBI sells or buys
government securities in open market transaction depending upon whether it
wants to increase the liquidity or reduce it. So when RBI sells government
securities in secondary market it sucks out the liquidity (stock of money) in the
economy. So overall it reduces the money supply available with banks in effect
the capital available with banks for lending purpose becomes scarce hence
interest rates move in upward direction. Exactly opposite happens when RBI
buys securities from open market. The transaction increases the money supply
available with banks so the cost of money (interest rate) moves in downward
direction and business activities like new investments, capacity expansion gets
boost. In a nutshell RBI buys securities when the economy is sluggish and
demand is not picking up and sells securities when the economy is overheated
and needs to cool down. OMO is also used in curbing the artificial liquidity
created to avoid strengthening of rupee against dollar in order to remain
competitive in exports.

Answer 3: Corporate tax collections in 2008-09 stood at Rs 2, 13,823 crore

while Personal income-tax collections (including the Securities Transaction Tax,
the Fringe Benefit Tax, and Banking Cash Transaction Tax) in 2008-09 were Rs
1, 23,967 crore

Answer 4: New Zealand captain Daniel Vettori became only the eighth all-
rounder in the history of Test Cricket to score 3,000 runs and bag 300 wickets.
Vettori, who has 3,329 runs to his credit, claimed his 300th wicket in Sri Lanka
in his 94th Test. Other cricketers to have achieved the milestone are Kapil Dev
(Ind), lan Botham (Eng), Richard Hadlee (NZ), Shaun Pollock (SA), Imran Khan
(Pak), Shane Warne (Aus) and Chaminda Vaas (SL).
Answer 6: The Compton-Miller Medal, which goes to the player who has had
the biggest impact on the series, also went to Andrew Strauss.

Answer 7: IRS is the flagship readership research survey from Media Research
Users Council (MRUC), the body set up by agencies, advertisers and media
houses to conduct the research required for the assessment of various media
for advertising. The NRS is published by the National Readership Studies
Council (NRSC) — a body constituted by the Indian Newspaper Society,
Advertising Agencies Association of India and Audit Bureau of Circulation for
the purpose of carrying out readership surveys in India.

Answer 8: Others in the list include Xerox CEO Ursula Burns, Iceland Prime
Minister Johanna Sigurdardottir and Bank of America’s Global Wealth
Management President Sallie L Krawcheck.

1. Which of the following has started a project called ‘Mobilising Mass Media
Support For Sharing Agro-Information’ to enhance the agricultural
communication and awareness in the country at grass-root level by using
communication and information tools recently?

a) Central Arid Zone Research Institute

b) Indian Council of Agricultural Research
c) International Crops Research Institute for the Semi-Arid Tropics
d) Institute of Rural Management, Anand
e) National Institute of Agricultural Marketing, Jaipur

2. The “World Ozone Day” was observed on September 16 recently. It is

celebrated on this date every year to commemorate the signing of which of
the following in 1987?

a) Montreal Protocol
b) United Nations Framework Convention on Climate Change
c) Cartagena Protocol on Biosafety
d) Kyoto Protocol
e) Bonn Convention

3. According to a recently released book “Hitler’s Jewish Hatred: Cliche

And Reality” by American historian Ralf Georg Reuth, which industrialist
was the major influence behind Hitler’s hatred of Jews?

a) Henry Ford
b) Andrew Carnegie
c) John D. Rockefeller
d) Thomas Elva Edison
e) George Eastman

4. Which of the following statements is/are true about the Durand Football
Tournament – 2009 organised in New Delhi from 11th to 22nd September,
2009?

I. NTPC was the main corporate sponsor of the event

II. This was the 122nd edition of the tournament
III. Durand is the third oldest Football tournament of the world and the oldest
Football tournament of Asia
a) I only
b) II only
c) I and II only
d) II and III only
e) I, II and III

5. Who won the Spanish Supercup in the final played at Barcelona recently?

a) Real Madrid
b) Real Zaragoza
c) Barcelona
d) Athletic Bilbao
e) Real Betis

6. The Union government has given Oil and Natural Gas Corp (ONGC)
permission to partner billionaire Lakshmi N Mittal for buying out 25 per cent
stake in the Satpayev oilfield in the Caspian Sea. ONGC Mittal Energy Ltd,
the joint venture of ONGC Videsh Ltd and Mittal Investment Sari plans to
invest $400 million in the oil field. Which Central Asian country owns the
Satpayev oilfield?

a) Kyrgyzstan
b) Kazakhstan
c) Tajikistan
d) Turkmenistan
e) Uzbekistan

7. According to Union Finance Minister Pranab Mukherjee which will be the

new base year for the wholesale price index (WPI) series, used to calculate
inflation in the country instead of the current 1993-94?

a) 2002-03
b) 2001-02
c) 2003-04
d) 2004-05
e) 2005-06

8. The Union government is planning to pick up the stake of the Reserve

Bank of India in the National Bank of Agriculture and Rural Development
(NABARD) and National Housing Bank (NHB). Which of the statements is/are
correct?

I. RBI holds 100% stake in NABARD

II. RBI holds 72.5% stake in NHB
III. Rangarajan Committee had recommended govt acquisition of RBI stake in
NABARD and NHB
a) I only
b) II only
c) III only
d) II and III only
e) I, II and III

9. The Employees State Insurance Corporation (ESIC) has increased the

provision of payment to unemployed insured persons under the Rajiv
Gandhi Sharmik Kalayan Yojana to which of the following durations
recently?

a) Four months
b) Six months
c) Twelve months
d) Eighteen months
e) Two years

10. The Union government has decided to provide full interest subsidy on
education loans taken by students for approved courses in recognised
technical and professional institutions in the country. What is the ceiling of
annual parental income for eligibility for the interest subsidy?

a) Rs 2 lakh per annum

b) Rs 3 lakh per annum
c) Rs 4.5 lakh per annum
d) Rs 5.5 lakh per annum
e) Rs 6 lakh per annum

Answers to the above questions

1. b 2. a 3. a 4. d 5. c 6. b 7. d 8. c 9. c
10. c

Answer 2: On 19 December 1994, the United Nations General Assembly

proclaimed 16 September the International Day for the Preservation of the
Ozone Layer or the “World Ozone Day” commemorating the date, in 1987, on
which the Montreal Protocol on Substances that Deplete the Ozone Layer was
signed.

Answer 3: Adolf Hitler, who hated America, was influenced by none other than
an American industrialist — Henry Ford, who revolutionized the world of
automobiles, according to a new book – “Hitler’s Jewish Hatred: Cliche And
Reality” by historian Ralf Georg Reuth.

Answer 4: The 122nd edition of ONGC Durand Football Tournament – 2009 was
organised in New Delhi from 11-22 September.

Answer 7: Union Finance Minister Pranab Mukherjee, in August 2009,

announced that 2004-05 will be the new base year for the calculation of
inflation of wholesale price index (WPI) series in the country.

Answer 8: Currently the RBI holds about 72.5 per cent stake in NABARD
(remaining lies with the government) and 100 per cent stake in NHB. It was the
Narasimhan Committee that recommended the transfer of RBFs stake in State
Bank of India, NABARD and NHB to the government to differentiate the Central
Bank’s functioning as the owner of banks and the sector regulator. In 2007, the
government acquired 59.73 per cent stake held by RBI in the country’s largest
bank SBI for Rs 35,531.33 crore.

Answer 9: The Employees State Insurance Corporation (ESIC) has recently

enhanced the Rajiv Gandhi Sharmik Kalayan Yojana by making provisions of
payment to unemployed insured persons up to 12 months instead of the earlier
provision of 6 months.

1. The West Khasi Hills in Meghalaya were in news recently for mining of
which radioactive element?

a) Thorium
b) Plutonium
c) Uranium
d) Radium
e) Radium

2. The ‘World Investment Prospects Survey 2009-2011’ was released

recently. Which of the following statements is/are correct?

I. India’s is in the third position in global foreign direct investments (FDI) list
II. China and USA occupy the top two positions in global foreign direct
investments (FDI) list
III. ‘World Investment Prospects Survey 2009-2011’ was prepared by the World
Bank
a) I only
b) II only
c) I and II only
d) II and III only
e) I, II and III

3. How much did the service sector contribute to India’s GDP during 2008-
09, according to a recent press note issued by the Financial Planning
Standards Board India (FPSBI)?

a) 29 per cent
b) 32 per cent
c) 48 per cent
d) 56 per cent
e) 64 per cent

4. Satnam Singh was honoured with the “Distinguished Fellowship Award-

2009” of the Institute of Directors in New Delhi recently. He is the
Chairman and Managing Director of which of the following?

a) National Thermal Power Corporation (NTPC)

b) Power Finance Corporation
c) Power Grid Corporation of India
d) Rural Electrification Corporation (REC)
e) National Hydel Power Corporation (NHPC)

5. Presumptive income taxation is employed primarily in economies where

‘hard-to-tax’ taxpayers form the majority of the population and
administrative resources are scarce. Which of the following statements
regarding Presumptive Taxation is/are true following the passage of the
Finance Bill, 2009 in the Lok Sabha recently?

I. The Presumptive Taxation scheme has been extended to all businesses with
gross receipts not exceeding Rs 40 lakh
II. The Presumptive Taxation scheme was earlier restricted to three businesses
— civil construction, retail trade and transporters
III.Presumptive Taxation was first introduced in Union Budget 2008-09
a) I only
b) II only
c) I and II only
d) II and III only
e) I, II and III
6. Which of the following is/are true about the Finance Bill 2009, which was
passed with some amendments in the Lok Sabha recently?

I. Service tax on new services proposed in Budget 2009-10 come into effect
from September 1, 2009
II. One percent interest subsidy would be provided by the Union government to
individuals for loans up to Rs 7 lakhs for houses that do not cost more than Rs
15 lakhs.
III. The sunset clause for tax holidays for industrial parks has been extended by
another two years up to March 2011 II only
a) I only
b) I and II only
c) II and III only
d) III and I only
e) I, II and III

7. Which country was world’s largest exporter with merchandise exports

worth $1.47 trillion in 2008 according to the World Trade Organization?

a) USA
b) China
c) Germany
d) Russia
e) Japan

8. Who will take over as the new Director General for the IAEA from
Mohammed ElBaradei in November 2009?

a) Yukiya Amano
b) W. Sterling Cole
c) Sigvard Eklund
d) Ernest J. Sternglass
e) Klaus Traube

9. Which of the following statements regarding the IPO Index launched by

the Bombay Stock Exchange (BSE) recently is/are incorrect?

a) The IPO Index will track the value of companies for two years from the
date of their listing after their initial public offers (IPOs)
b) This is the first such index in the country.
c) IPOs of companies with a minimum free-float market capitalisation of Rs
100 crore would be included in the index
d) A minimum of 20 stocks would be maintained to form the index at all
times
e) The maximum weight of any stock would be capped at 20%
10. Which of the following is/are true about the company that has topped
Fortune magazine’s list of the world’s 100 fastest-growing companies?

I. The company is ‘Research In Motion’

II. The company is famous for its laptops
III. The company is based in Canada
a) II only
b) I and II only
c) II and III only
d) III and I only
e) I, II and III

Answers to the above questions

1. c 2. c 3. d 4. a 5. c 6. d 7. c 8. a 9. d
10. d

Answer 2: UNCTAD (United Nations Conference on Trade and Development)

prepared the report on world investment prospects titled ‘World Investment
Prospects Survey 2009-2011’.

Answer 4: The award was presented by World Council for Corporate

Governance president Madhav Mehra. Every year the executive council of the
Institute of Directors selects persons of eminence for their outstanding
contribution to business and society. The first “Distinguished Fellowship” was
awarded to former President A.P.J. Abdul Kalam.

Answer 6: One percent interest subsidy would be provided by the Union

government to individuals for loans up to Rs 10 lakhs for houses that do not
cost more than Rs 20 lakhs.

Answer 9: A minimum of 10 stocks would be maintained to form the index at

all times. The Bombay Stock Exchange (BSE) has launched IPO Index – an index
to track the value of companies for two years from the date of their listing
after their initial public offers (IPOs). This is the first such index in the country.
IPOs of companies with a free-float market capitalisation of Rs 100 crore and
above on its first day of listing would be included in the index. Follow-on public
offers (FPOs) would be excluded. A stock would be excluded from the index on
the second Monday of a month after it had been listed for two years. At any
point in time, a minimum of 10 scrips would be maintained to form the index.
In case there were less than 10 scrips due to possible exclusion, the ouster
would be delayed until a new company was added to the index. The maximum
weight of any scrip would be capped at 20% and the constituent weight would
be reviewed at the time of inclusion or exclusion, and on a monthly re-
balancing basis.
Answer 10: Research In Motion (RIM) is known for its Blackberry brand of
mobile phones. RIM has co-CEOs Jim Balsillie and Mike Lazaridis

1. Yahoo! and Microsoft reached agreement on a long-awaited Web search

and advertising partnership recently. Which of the following statements
about the deal is/are correct?

I. The deal does not involve any transfer of cash between the two companies
II. Microsoft has agreed to use the Yahoo! search engine on its website
III. Microsoft will act as the exclusive global sales force for the two companies’
premium search advertisers
a) I only
b) I and II only
c) II and III only
d) III and I only
e) I, II and III

2. Which of the following is/are true about the Gorgon liquefied natural gas
(LNG) project that was in news recently?

I. The project was initiated by the government of Iran

II. Gorgon has entered into deals worth $41 billion and $21 billion to supply gas
to China’s PetroChina and India’s Petronet respectively
III. Gorgon project is a joint venture by Chevron, Shell and ExxonMobil
a) II only
b) I and II only
c) II and III only
d) III and I only
e) I, II and III

3. Which is the largest municipal solid waste producer in the country

according to a survey carried out by the Federation of Indian Chambers of
Commerce and Industry (FICCI) in 22 cities across the country recently?

a) Kolkata
b) Delhi
c) Mumbai
d) Chennai
e) Bangalore

4. V K Sibal was in news recently over allegations by Anil Ambani that he

favoured Mukesh Ambani’s Reliance Industries Ltd over Reliance Natural
Resources Ltd (RNRL). What designation does Sibal hold?
a) Chairman, Finance Commission
b) Chairman, Oil Industry Development Board
c) Petroleum Secretary
d) Director General of Hydrocarbons
e) Chairman, Competition Commission of India

5. Which country was the world’s largest exporter with exported goods
worth $521.7 billion for the first six months of 2009, according to the World
Trade Organization?

a) USA
b) China
c) Germany
d) Russia
e) Japan

6. Which of the following statements is/are correct regarding the RBI Annual
Report – 2008-09 released recently?

I. The value of counterfeit notes detected by RBI offices and branches of

various banks has gone up by over 180% in the last one year
II. The number of fake notes went up by over 100% in 2008-09 in the last one
year
III. Income Tax department has set up Forged Note Vigilance Cells (FNVCs) to
deal with the problem of fake notes
a) I only
b) II only
c) I and II only
d) II and III only
e) I, II and III

7. Which of the following statements about Foreign Trade Policy for 2009-
14 unveiled by the Union Commerce and Industry Minister Anand Sharma is
incorrect?

a) The Ministry has set a target of exports worth $ 150 billion in the financial
year ending March 2011
b) 26 new markets will be added for incentives under Focus Market Scheme
c) Zero-duty import of capital goods will be permitted under the Export
Promotion Capital Goods (EPCG) scheme
d) The Duty Entitlement Passbook scheme (DEPB), which neutralises the levy
of Customs duty on the import content of export products, has beer: extended
to December 2010.
e) Export of tea has been brought under the Vishesh Krishi and Gram Udyog
Yojana (VKGUY), which offers a 5% incentive
8. Who has been named as the winner of the ‘FDI Asian Personality of the
Year’ awards by the FDI Magazine of the Financial Times (FT) group?

a) RatanTata
b) Narendra Modi
c) NitishKumar
d) Nandan Nilekani
e) Sheila Dixit
f) Aditya Puri

9. India will be able to access which African country’s uranium reserves

after an agreement was signed during the visit the President Hifikepunye
Pohamba to India recently?

a) Angola
b) Namibia
c) Liberia
d) Niger
e) Ghana

10. Which of the following combinations of the newly reconstituted

Economic Advisory Council to the Prime Minister (EAC) and their
designations is incorrect?

a) Dr Saumitra Chaudhuri – Economic Adviser, ICRA

b) Dr Govinda Rao – Director-General, National Institute of Public Finance and
Policy
c) Dr Vijay Shankar Vyas – Finance Secretary
d) Suman K. Bery – Director-General, National Council of Applied Economic
Research
e) Both (1) and (3)

Answers to the above questions

1. a 2. c 3. b 4. d 5. b 6. c 7. a 8. b 9. b
10. c

Answer 1: Under the no-cash deal, Yahoo! will use Microsoft’s new Bing search
engine on its own sites, while Yahoo! will act as the exclusive global sales force
for the companies’ premium search advertisers.

Answer 2: Australia has approved a massive energy project – Gorgon liquefied

natural gas (LNG) plant off Western Australia – that will supply natural gas
worth tens of billions of dollars to China and India.

Answer 6: The value of counterfeit notes detected by RBI offices and branches
of various banks has gone up by 183.14% in the last one year The number of
fake notes went up by 103% to 3, 98,111 in 2008-09 as against 1, 95,811 during
the corresponding period last year. There has been an increase in forging of
notes of higher denominations, especially Rs 500 and Rs 1,000 notes. Many
banks have set up Forged Note Vigilance Cells (FNVCs) to deal with the
problem.

Answer 7: The Ministry has set a target of exports worth $200 billion in the
financial year ending March 2011. India’s exports were worth $168.7 billion in
2008-09

Answer 8: The award given by the FDI Magazine of the Financial Times (FT)
group recognises the political and business leaders around UK; globe, who have
been proactive, dynamic and innovative in securing foreign investment and
improving the business environment of their jurisdiction. The other regional
winners are Qasim Al Fahadawi, Governor of Al Anbar province, Iraq,
Babatunde Raji Fashola, Governor of Lagos state, Nigeria, Connie Hedegaard,
Energy Minister, Denmark, Ivonne Ortega Pacheco, Governor of Yucatan,
Mexico and Bobby Jindal. Governor of Louisana, US.

Answer 10: Dr Vijay Shankar Vyas – President, Asian Society of Agricultural

Economists

1. Which state celebrated the first anniversary of ‘Mukhyamantri Kanya

Suraksha Yojana’ under which the state government contributes Rs 2,000
for every girl child born to families below the poverty line recently?

a) Rajasthan
b) Delhi
c) Bihar
d) Madhya Pradesh
e) Uttar Pradesh

2. Historian William Dalrymple was in news for the release of which of his
following books recently?

a) ‘City of Djinns’
b) ‘From the Holy Mountain: A Journey in the Shadow of Byzantium’
c) ‘Nine Lives: in Search of the Sacred in Modern India’
d) ‘Begums, Thugs & White Mughals — The Journals of Fanny Parkes’
e) ‘The Last Mughal, The Fall of a Dynasty, Delhi 1857’
3. The Maharashtra Cabinet has approved a design submitted by Bensley
Design Studios, Thailand and Team One Architects, Mumbai for installation
of a 309 feet tall statue of who among the following off the coast of
Mumbai?

a) Jyotiba Phule
b) Shivaji
c) Bal Gangadhar Tilak
d) Jawaharlal Nehru
e) Baji Rao I

4. Playback singer Manna Dey was selected for the prestigious Dada Saheb
Phalke award for 2007 recently. Which of the following statements is/are
correct?

I. He is only the third singer to receive the award

II. He has won National award for Best Male Playback Singer twice
III. The award carries a cash prize of Rs.10 lakh, a swaran kamal and a shawl
a) I only
b) I and II
c) II and III
d) III only
e) I, II and III

5. Who is the guest at the first state dinner hosted by United States
President Barack Obama in November?

a) Afghanistan President, Hamid Karzai

b) India’s Prime Minister, Manmohan Singh
c) Russia’s Prime Minister, Vladimir Putin
d) China’s President, Hu Jintao
e) Germany’s Chancellor, Angela Merkel

6. Noted music composer Pandit Hridaynath Mangeshkar was in news for

joining which political party recently?

a) BJP
b) Shiv Sena
c) Congress
d) Bahujan Samaj Party
e) Nationalist Congress Party

7. Which chief minister flagged off ‘Kisan Jagrukata Raths’ to tour drought
affected districts to collect applications for grants, tractors, harvesters and
power tillers from farmers recently?
a) Shivraj Singh Chauhan
b) Mayawati
c) Nitish Kumar
d) Ashok Gehlot
e) Ashok Chavan

8. Who was chosen as The Economic Times Business Reformer of the Year
2009?

a) Nitish Kumar
b) Narendra Modi
c) Sheila Dixit
d) Shivraj Singh Chauhan
e) Ashok Chavan

9. Which of the following statements is/are true regarding IAEA

(International Atomic Energy Agency) Director-General, Mohammed
ElBaradei who won the Indira Gandhi Prize for Peace, Disarmament and
Development (2008) given to recently?

I. ElBaradei is a nuclear physicist by profession

II. ElBaradei succeeded Hans Blix of Sweden as Director General of IAEA in
1997.
III. He is currently serving his third term as Director-General of IAEA
a) I only
b) I and II only
c) II and III only
d) I and III only
e) I, II and III

10. The Kremlin Zoria Festival organised in Moscow recently was an

international event devoted to which of the following?

a) Classical music
b) Military music
c) Tribal music
d) Folk Dances
e) All the above

Answers to the above Questions

1. c 2. c 3. b 4. e 5. b 6. b 7. c 8. a 9. c
10. b

Answer 1: The objective of ‘Mukhyamantri Kanya Suraksha Yojana’ is to

improve the sex ratio and to encourage registration of birth. The scheme
launched was jointly by the Bihar Government Social Welfare Department,
State Women Development Corporation, and the UTI Asset Management
Company in June 2008. The state government would invest Rs. 2,000 for the
first two girls in a family living under the Below Poverty Level (BPL). The
amount of Rs.2000/- will be invested by Women Development Corporation,
Patna, Bihar on behalf Government of Bihar in UTI-Children’s Career Balanced
Plan-Growth Option. On completion of 18 years the amount equal to the
maturity value will be paid to the girl child (Rs. 18000/-).

Answer4: The award carries a cash prize of Rs.10 lakh, a swaran kamal and a
shawl. Manna Dey won the National award for Best Male Playback Singer for the
song ‘Jhanak Jhanak Tore Baaje Paayaliya’ for the Hindi movie ‘Mere Huzoor’
in 1969. He again won the National award for Best Male Playback Singer for the
song ‘Ja Khushi Ora Bole’ for the Bengali movie ‘Nishi Padma’ in 1971. Asha
Bhosle (2000) and Lata Mangeshkar (1989) are the other two singers to have
won the award. Manna Dey is also the recipient of the Padma Shri and Padma
Bhushan awards.

Answer 9: ElBaradei is a lawyer by profession. Baradei earned a Bachelor’s

degree in law from the University of Cairo in 1962, followed by a degree in
International Law at the Graduate Institute of International Studies in Geneva
and a PhD in International Law at the New York University School of Law in
1974. ElBaradei was the joint recipient of the Nobel Peace Prize in 2005 along
with the IAEA

Answer 10: Kremlin Zoria Festival is an international military music event

organised at the historic Red Square in Moscow in September.

Tennis:

Australian open, 2009: Men’s singles – Rafael Nadal (Spain), Women’s singles –
Serena Williams (USA),

Wimbledon open, 2009: Men’s singles – Roger Federer (Switzerland),

Women’s singles – Serena Williams (USA),

French open, 2009: Men’s singles – Roger Federer (Switzerland), Women’s

singles – Svetlana Kuznetsova (Russia),

US open, 2009: Men’s singles – Juan Martin Del Potro (ARG), Women’s singles –
Kim Clijsters (BEL),
David Cup, 2008: Spain (Runners-up Argentina),

Masters cup, 2008: Novak Djokovic (Serbia)

Hockey:

Azlan Shah Tournament: India (Runners-up Malaysia),

Junior Asia cup: India (Runners-up S. Korea),

National women’s Hockey: Indian Railways (Runners-up Jharkhand)

Chess:

Linares Chess championship: Alexander Grischuk (Russia), Asian Junior chess

championship: Ashwin Jayaram, Marry Ann Gomes, World chess
championship: Vishvanathan Anand (India), Mainz chess: Viswanathan Anand
(India), World Junior championship: Abhijeet Gupta and Dronavalli Harika
(both India)

Golf:

US PGA championship: Yang Yong-Eun (S.Korea),

World cup: Sweden (Runners-up Spain),

HSBC champions: Sergio Garcia (Spain),

Singapore open: Jeev Milkha Singh (India),

US Open: Lucas Glover (US),

Johnnie Walker classic: Mark Brown (US)

Cricket:

IPL-II 2009: Deccan Chargers (Runners-up Bangalore Royal challengers ),

Women’s ICC world cup: England (Runners-up Newzealand),

Men’s T-20 world cup: Pakistan (Runners-up Sri Lanka),

Women’s T-20 world cup: England (Runners-up Newzealand)

Badminton :

World Badminton championship: Men’s singles – Lin Dan (China), Women’s

singles – Lan Lu (China),

All England title: Lin Dan (China),

Indonesian open: Saina Nehwal (India),

Thomas cup: China (Runners-up South Korea)

Football:

19th Spanish league: Barcelona,

Premier league: Manchester united,

Champion league: Barcelona,

UEFA cup: Shakhtar Donetsk,

Federation cup: Mohan Bagan,

AFC challenge: India,

Euro cup: Spain,

Santosh trophy: Goa,

SAFF cup: Maldives,

Nehru cup: WINNER - India (Runners-up Syria)

1. Which of the following has started a project called ‘Mobilising Mass Media
Support For Sharing Agro-Information’ to enhance the agricultural
communication and awareness in the country at grass-root level by using
communication and information tools recently?

a) Central Arid Zone Research Institute

b) Indian Council of Agricultural Research
c) International Crops Research Institute for the Semi-Arid Tropics
d) Institute of Rural Management, Anand
e) National Institute of Agricultural Marketing, Jaipur

2. The “World Ozone Day” was observed on September 16 recently. It is

celebrated on this date every year to commemorate the signing of which of
the following in 1987?

a) Montreal Protoco lb) United Nations Framework Convention on Climate

Change
c) Cartagena Protocol on Biosafety d) Kyoto Protocol e) Bonn Convention

3. According to a recently released book “Hitler’s Jewish Hatred: Cliche

And Reality” by American historian Ralf Georg Reuth, which industrialist
was the major influence behind Hitler’s hatred of Jews?

a) Henry Ford b) Andrew Carnegie c) John D. Rockefeller d) Thomas Elva

Edison
e) George Eastman
4. Which of the following statements is/are true about the Durand Football
Tournament – 2009 organised in New Delhi from 11th to 22nd September,
2009?

I. NTPC was the main corporate sponsor of the event

II. This was the 122nd edition of the tournament
III. Durand is the third oldest Football tournament of the world and the oldest
Football tournament of Asia
a) I only b) II only c) I and II only d) II and III only e) I, II and III

5. Who won the Spanish Supercup in the final played at Barcelona recently?

a) Real Madrid b) Real Zaragoza c) Barcelona d) Athletic Bilbao e)

Real Betis

6. The Union government has given Oil and Natural Gas Corp (ONGC)
permission to partner billionaire Lakshmi N Mittal for buying out 25 per cent
stake in the Satpayev oilfield in the Caspian Sea. ONGC Mittal Energy Ltd,
the joint venture of ONGC Videsh Ltd and Mittal Investment Sari plans to
invest $400 million in the oil field. Which Central Asian country owns the
Satpayev oilfield?

a) Kyrgyzstan b) Kazakhstan c) Tajikistan d) Turkmenistan e)

Uzbekistan

7. According to Union Finance Minister Pranab Mukherjee which will be the

new base year for the wholesale price index (WPI) series, used to calculate
inflation in the country instead of the current 1993-94?

a) 2002-03b) 2001-02c) 2003-04d) 2004-05e) 2005-06

Material prepared by

veeraswamy
8. The Union government is planning to pick up the stake of the Reserve
Bank of India in the National Bank of Agriculture and Rural Development
(NABARD) and National Housing Bank (NHB). Which of the statements is/are
correct?

I. RBI holds 100% stake in NABARDII. RBI holds 72.5% stake in NHB
III. Rangarajan Committee had recommended govt acquisition of RBI stake in
NABARD and NHB
a) I only b) II only c) III only d) II and III only e) I, II and III

9. The Employees State Insurance Corporation (ESIC) has increased the

provision of payment to unemployed insured persons under the Rajiv
Gandhi Sharmik Kalayan Yojana to which of the following durations
recently?

a) Four months b) Six months c) Twelve months d) Eighteen months

e) Two years

10. The Union government has decided to provide full interest subsidy on
education loans taken by students for approved courses in recognised
technical and professional institutions in the country. What is the ceiling of
annual parental income for eligibility for the interest subsidy?

a) Rs 2 lakh per annum b) Rs 3 lakh per annum c) Rs 4.5 lakh per annum

d) Rs 5.5 lakh per annum e) Rs 6 lakh per annum

Answers to the above questions

1. b 2. a 3. a 4. d 5. c 6. b 7. d 8. c 9. c
10. c

Answer 2: On 19 December 1994, the United Nations General Assembly

proclaimed 16 September the International Day for the Preservation of the
Ozone Layer or the “World Ozone Day” commemorating the date, in 1987, on
which the Montreal Protocol on Substances that Deplete the Ozone Layer was
signed.

Answer 3: Adolf Hitler, who hated America, was influenced by none other than
an American industrialist — Henry Ford, who revolutionized the world of
automobiles, according to a new book – “Hitler’s Jewish Hatred: Cliche And
Reality” by historian Ralf Georg Reuth.

Answer 4: The 122nd edition of ONGC Durand Football Tournament – 2009 was
organised in New Delhi from 11-22 September.

Answer 7: Union Finance Minister Pranab Mukherjee, in August 2009,

announced that 2004-05 will be the new base year for the calculation of
inflation of wholesale price index (WPI) series in the country.

Answer 8: Currently the RBI holds about 72.5 per cent stake in NABARD
(remaining lies with the government) and 100 per cent stake in NHB. It was the
Narasimhan Committee that recommended the transfer of RBFs stake in State
Bank of India, NABARD and NHB to the government to differentiate the Central
Bank’s functioning as the owner of banks and the sector regulator. In 2007, the
government acquired 59.73 per cent stake held by RBI in the country’s largest
bank SBI for Rs 35,531.33 crore.

Answer 9: The Employees State Insurance Corporation (ESIC) has recently

enhanced the Rajiv Gandhi Sharmik Kalayan Yojana by making provisions of
payment to unemployed insured persons up to 12 months instead of the earlier
provision of 6 months.

Material prepared by

veeraswamy

In 1959 the Government passed the State Bank of India (Subsidiary Banks) Act, enabling
the State Bank of India to take over eight former State-associated banks as its
subsidiaries. On Sept 13, 2008, State Bank of Saurashtra, one of its Associate Banks,
merged with State Bank of India.

SBI has acquired local banks in rescues. For instance, in 1985, it acquired Bank of
Cochin in Kerala, which had 120 branches. SBI was the acquirer as its affiliate, State
Bank of Travancore, already had an extensive network in Kerala.

Associate Banks
There are six associate banks that fall under SBI, and together these six banks constitute
the State Bank Group. All use the same logo of a blue keyhole and all the associates use
the "State Bank of" name followed by the regional headquarters' name. Originally, the
then seven banks that became the associate banks belonged to princely states until the
government nationalized them between October, 1959 and May, 1960. In tune with the
first Five Year Plan, emphasizing the development of rural India, the government
integrated these banks into State Bank of India to expand its rural outreach. There has
been a proposal to merge all the associate banks into SBI to create a "mega bank" and
streamline operations. The first step along these lines occurred on 13 August 2008 when
State Bank of Saurashtra merged with State Bank of India, which reduced the number of
state banks from seven to six. Furthermore on 19th June 2009 the SBI board approved the
merger of its subsidiary, State Bank of Indore, with itself. SBI holds 98.3% in the bank,
and the balance 1.77% is owned by individuals, who held the shares prior to its takeover
by the government.

The acquisition of State Bank of Indore will help SBI add 470 branches to its existing
network of 11,448. Also, following the acquisition, SBI’s total assets will inch very close
to the Rs 10-lakh crore mark. Total assets of SBI and the State Bank of Indore stood at Rs
998,119 crore as on March 2009.

The Subsidiaries of SBI till date

• State Bank of Indore

• State Bank of Bikaner & Jaipur
• State Bank of Hyderabad
• State Bank of Mysore
• State Bank of Patiala
• State Bank of Travancore

State Bank of Indore

State Bank of Indore (Indore Bank) is government-owned Indian bank and a subsidiary
of State Bank of India (SBI), whose logo it shares. Indore Bank's main branch and
headquarters is in the city of Indore, located on the Malwa Plateau, just north of the
Vindhya Range. Presently the bank has over 470 branches in more than 300 cities and
towns. In March 2009, the business turnover of State Bank of Indore has crossed
Rs.50000 crore.

• In October 2009, the Government of India gave its in-principle approval to a

merger between State Bank of India and State Bank of Indore. The managements
of the banks are now working out the details and expect to have a final proposal
ready by December 2009.[1] SBI currently holds a 98.05% stake in Indore Bank,
which is the smallest of SBI’s six associate banks. 1920 The Bank of Indore was
incorporated under a special charter from Maharaja Tukoji Rao Holkar III, who
 was the ruler from 1903 to 1927 of the the former princely state of Indore. Indore
State awarded the Bank a monopoly for 10 years, granted it certain concessions,
and subscribed to the Bank's share capital.
• 1960 The Bank of Indore became a subsidiary of State Bank of India w.e.f. 1st
January 1960 and was renamed as State Bank of Indore.
• 1962 The State Bank of Indore acquired the Bank of Dewas, which had been
established in 1936 and had been the first bank in Dewas district.
• 1965 The State Bank of Indore acquired Dewas Senior Bank, which had been
incorporated in 1941.
• 1971 The State Bank of Indore was up-graded to class 'A' category bank.

State Bank of Bikaner & Jaipur (SBBJ)is an associate bank of State Bank of India.
Currently, SBBJ has over 848 branches, mostly located in the state of Rajasthan, India.
Its branch network out of Rajasthan covers all the major business centers of India. In
1997, the Bank entered in the capital market with an Initial Public Offering of 13,60,000
shares at a premium of Rs 440 per share. State Bank of Bikaner & Jaipur came into
existence on 1963 when what earlier were two banks, State Bank of Bikaner (established
in 1944) and State Bank of Jaipur (established in 1943), merged. Both banks had been
made a subsidiary of the State Bank of India under the State Bank of India (Subsidiary
Bank) Act, 1959 in 1960. On April 25, 1966 SBBJ took over Govind Bank, Mathura.

In 1984 SBBJ opened the Ganganagar Kshetriya Gramin Bank as a district Regional
Rural Bank. Then in 1985 SBBJ opened the Bikaner Kshetriya Gramin Bank. Lastly,
SBBJ opened the Marwar Gramin Bank for Pali, Jalore and Sirohi districts. On 12 June
2006 SBBJ merged all three banks into the MGB Gramin Bank, with headquarters in
Pali.

State Bank of Hyderabad (SBH) is an associate bank of State Bank of India (SBI), and
is one of the scheduled banks in India. The Bank's Head Office is situated at Gunfoundry
Area, in Hyderabad, India. SBH has over 1031 branches and about 12,800 employees.
Assets are in excess of Rupees 767 billion.

The bank has performed well in the past decades, winning several awards for its banking
practices. The bank originated as the central bank of the erstwhile Nizam state under the
name, Hyderabad State Bank. It was established in 1942, during the reign of the last
Nizam of Hyderabad, Mir Osman Ali Khan. The bank also managed the Osmania Sicca,
the currency of Hyderabad state, which had the distinction of having its own currency
during British rule.

In 1956, the bank absorbed, by merger, the Mercantile Bank of Hyderabad, which Raja
Pannalal Pitti had founded in 1935.[2] (Other accounts give year of founding as 1946 and
that of merger as 1952).
Hyderabad State Bank was renamed State Bank of Hyderabad in 1956, and its entire
share capital was vested with the Reserve Bank of India. Later, after the Subsidiary
Banks Act was passed in 1959, it and the other banks of the princely states became
subsidiaries of SBI. SBH was the first subsidiary of State Bank of India.

State Bank of Mysore was established in the year 1913 as Bank of Mysore Ltd. under the
patronage of the erstwhile Govt. of Mysore, at the instance of the banking committee
headed by the great Engineer-Statesman, Late Dr. Sir M.Visweswaraiah (Bharat Ratna).
Subsequently, in March 1960, the Bank became an Associate of State Bank of India.State
Bank of India holds 92.33% of shares. The Bank's shares are listed in Bangalore,
Chennai, and Mumbai stock exchanges.

As an associate bank, State Bank of Mysore has a team of employees with a

management.This bank has in excess of 650 branches, and 10200 employees. The bank
has regional offices in
Bengaluru,Mysore,Mangalore,Mandya,Hassan,Shimoga,Davanegere,Bellary,Tumkur,Kol
ar,Chennai,Coimbatore,Hyderabad,Mumbai and New Delhi. The bank's turnover in the
year 2008-2009 was around US$10 Billion and Profit about US$65 Million.

State Bank of Patiala is an associate bank of State Bank of India. State Bank of Patiala
(SBP), originally named Patiala State Bank, and currently an associate bank of the State
Bank of India, was founded on 17 November 1917. SBP was founded by Bhupinder
Singh, Maharaja of the princely state of Patiala of Undivided India, and the functions of
the Bank included the normal functions of commercial banks, as also some functions
similar to functions of a central bank for the princely state of Patiala.

After India’s independence, the Bank was made a wholly owned subsidiary of the
Government of Punjab. On 1 April 1960, SBP was accorded the status of an Associate
bank of the State Bank Group. Presently, the State Bank of Patiala has a network of 830
service outlets, including 750 branches, in all major cities of India, but most of the
branches are located in the Indian states of Punjab, Haryana, Himachal Pradesh,
Rajasthan, Madhya Pradesh, Jammu & Kashmir, Delhi and Gujarat.

State Bank of Travancore (SBT), is a subsidiary of the State Bank Group and also has
private share-holders. It the premier bank of Kerala State, India, where it has 580
branches. Overall, SBT has a network of over 712 branches spread over 16 Indian states.

The bank provides a range of banking products, which includes the products aimed at
Keralites who are working abroad. The bank possess a computerized core banking
solution. SBT's total business reaches at Rs.66644 crores, in which the NRI business
touched Rs.8755 crores.

The bank was established in 1945 as the Travancore Bank Ltd, at the initiative of C. P.
Ramaswami Iyer, then Divan of Travancore. Following violent resentment against the
dictatorial rule of Sir. C.P.Ramaswamy Iyer, the bank no longer credits his role. Instead,
the Bank now credits the Maharaja of Travancore as the founder, though the Raja had
little to do with the founding. Although the Travancore government put up only 25% of
the capital, the bank undertook government treasury work and foreign exchange business,
apart from its general banking business. Its registered office was at Madras. In 1960, it
became a subsidiary of State Bank of India under the SBI subsidiary Banks Act,1959,
enacted by the Parliament of India.

Between 1959 and 1965, SBT has taken over numerous small, private banks in Kerala. [1].

• 1959: SBT acquired the assets and liabilities of Indo-Mercantile Bank, which Sri
Popatlal Goverdhan Lalan had helped found in Cochin in 1937.
• 1961: SBT took over Travancore Forward Bank, Kottayam Orient Bank, and
Bank of New India (est. 1944) after the Reserve Bank of India put the banks
under moratorium.
• 1963: SBT took over Vasudeva Vilasom Bank.
• 1964: SBT took over Cochin Nayar Bank (est. 1929) and Latin Christian Bank
after the Reserve Bank of India put the banks under moratorium. It also acquired
Champakulam Catholic Bank.
• 1965: SBT took over Bank of Alwaye (est. 1942), and Chaldean Syrian Bank,
which several leading families of Syrian Christian origin had founded in 1918.[2

State Bank of Mysore was established in the year 1913 as Bank of Mysore Ltd. under the
patronage of the erstwhile Govt. of Mysore, at the instance of the banking committee headed by
the great Engineer-Statesman, Late Dr. Sir M.Visvesvaraya. Subsequently, in March 1960, the
Bank became an Associate of State Bank of India.State Bank of India holds 92.33% of shares.
The Bank's shares are listed in Bangalore, Chennai, and Mumbai stock exchanges.

The Bank has a widespread network of 682 branches(as on 30.09.2009) and 20

extension counters spread all over India which includes 5 specialised SSI
branches, 4 Industrial Finance branches, 3 Corporate Accounts Branches, 4
specialised Personal Banking Branches, 10 Agricultural Development
Branches, 3 Treasury branches, 1 Asset Recovery Branch and 8 Service
Branches, offering wide range of services to the customers.

Managing Director Mr. Dilip Mavinkurve

Financial
Profile
The paid up capital of the Bank is Rs.360 Millions as on 31.03.2009 out of which State Bank of India holds
92.33%. The networth of the Bank as on 31.03.2009 is Rs.1619.44 Crores and the Bank has achieved a capital
adequacy ratio of 12.99% as at the end of March 2009. The Bank has an enviable track record of earning profits
continuously and uninterrupted payment of dividend since its inception in 1913. The Bank earned a net profit of
Rs.336.91 Crores for the year ended March 2009 and earning per share is at Rs.94.

Business Profile
Total deposits of the Bank as at the end of March 2009 is Rs.32915.76 Crores and the total advances stood at
Rs. 25616.05 Crores which include export credit of Rs. 1158.13 Crores. The Forex Merchant turnover of the
Bank is Rs.19607.42 Crores and the Forex Trading turnover is Rs.82197.27 Crores at the end of March 2009.

State Bank of Mysore

H .O.: K.G.Road, Bangalore - 560009
 The rich heritage of State Bank of Patiala dates back to the year 1917, when it was
founded by Late His Highness Bhupinder Singh, Maharaja of erstwhile Patiala state,
with one branch by the name of 'Chowk Fort, Patiala' to begin with. The Bank, then
known as the 'Patiala State Bank' was state owned and setup for the explicit purpose of
fostering growth of agriculture, trade and industry. The constitution, scope and
operations of the Bank underwent a sea change with the formation of the Patiala and
east Punjab States Union (PEPSU) in 1948.The Bank was then reorganized and brought
under the control of Reserve Bank of India.

It was christened as the Bank of Patiala. Another milestone in history of the Bank was its
becoming a subsidiary of the State Bank of India on 1st April,1960 when it was named as the
State Bank of Patiala and since then it has grown significantly both in size and volume of
business. During these glorious years, the Bank has been playing an important role in banking
sphere.

Our bank has now added a golden chapter to its history by fully networking all its
brances on Core Banking Solutions on 08.08.2005 and become the first fully networked
Public Sector Bank in the country.

Md Shri Ashok Nayar,

Managing Director,
State Bank of Patiala,
Head Office,
The Mall,
PATIALA 147001
Performance Highlights for 2008-09

• Total Income increased by 31.19% and total expenditure increased by

31.43%.

• Net Profit increased from Rs. 413.73 crore to Rs. 531.54 crore.

• Earning Per Share increased from Rs. 151 to Rs. 193.

• Book value of Rs. 100 share improved from Rs. 986 to Rs. 1141.

• Return on Assets remained stagnant despite growth of 17.96% in total

assets.

• Return on Average Equity increased from 15.92% to 18.20%.

• Deposit increased by 23.54% and advance increased by 19.87%.

 • The Capital Adequacy Ratio under BASEL-I is 11.43% against the
stipulated 9%.

• Bank’s Credit-Deposit Ratio stood at 73.77%.

• Business per Employee increased from Rs. 7.60 crore to Rs. 9.10 crore.

• The Yield on Advance increased from 10.53% to 11.32%.

• Ratio of Gross NPAs to Gross Advances declined from 1.42% to 1.31%.

• Expense Ratio declined from 44.04% to 42.44%.

Malwa Gramin Bank is a Regional Rural Bank sponsored by State Bank of Patiala

In order to provide excellent service to its customers, Malwa Gramin

Bank initiated the process of computerisation of its branches on 7th

july 2005 and become a 100% computerized Bank on 13.10.2005.

Thereafter Bank has opened 10 new fully computerised branches. AT

present bank has 51 branches out of which 47 branches are in Rural

Area undertaking to the needs of different section of the society. The

Bank is shortly shifting towards Core Banking Solutions, which will

bring our services at per with commercial Banks

State Bank of Travancore (SBT) was originally established as Travancore Bank

Ltd. in 1945 sponsored by the erstwhile Princely State of Travancore. Under a
special statute of the Indian Parliament (SBI subsidiary Banks Act 1959) it has
been made an Associate of the State Bank of India and a member of the State
Bank Group, the largest banking group in India.

Regd. office/Head Office at: Poojapura, Trivandrum 695 012, Kerala state, India

Mr. A.K.
Managing Director
Jagannathan

About State Bank of Indore

History
State Bank of Indore popularly known as Indore Bank in Malwa Region, originally known as Bank
of Indore Ltd. was incorporated under a special charter of His Highness Maharaja Tukojirao
Holker-III, the then ruler of this region. In terms of State Bank of India (Subsidiary Banks) Act,
1959 the Bank of Indore Ltd. became a subsidiary of State Bank of India w.e.f. 1st January 1960
and was renamed as State Bank of Indore The Bank acquired business of The Bank of Dewas
Ltd. in 1962 and The Dewas Senior Bank Ltd. in 1965 and was up-graded to class 'A' category
bank in 1971. Ever since the Bank has been making steady progress and at the end of Mar.
2009, the business turnover has crossed Rs.50000 crore

Ahmedabad, Nov. 12 State Bank of India is likely to conclude the merger of its associate bank
State Bank of Indore (SBIN) with itself by March 2010.

The board of directors of ‘Indore Bank’, as it is popularly known had, on October 31, 2009,
approved the Scheme of Acquisition of State Bank of Indore (SBIN) by SBI, under Section 35 of
the SBI Act, 1955, subject to approval by the Reserve Bank of India and the Government of India.

allotment

The scheme provides for allotment of 34 equity shares of Rs 10 each of SBI for every 100 shares
of Rs 10 each of SBIN. The above swap ratio has been determined through independent
valuation by chartered accountants Haribhakti &Co, and merchant banker Axis Bank. Kotak
Mahindra Capital Company Ltd, another merchant banker, independently vetted the valuation.

Grievance redressal

A grievance redressal mechanism has been created for shareholders of SBIN to file their
objections, if any, with regard to the share-swap ratio, by November-end. The threshold level for
such shareholders has been fixed at 0.10 per cent, i.e. shareholders individually or collectively
holding 17,500 shares of SBIN or 100 shareholders acting collectively, irrespective of the number
of shares they hold, would be eligible to do so. These objections would be examined by an
independent experts’ committee.

State Bank of Bikaner and Jaipur was established in 1963 after amalgamation of erstwhile State
Bank of Jaipur (established in 1943) with State Bank of Bikaner (established in 1944) as a
subsidiary of State Bank of India. The Bank's main area of operation is in the State of Rajasthan,
with a presence at all important centres in the country. The Bank has 864 branches spread over
the country.

The Bank follows transparent corporate governance policies and has smoothly migrated to Basel
II. On the technology front, the Bank migrated all branches to Core Banking Solution (CBS) and
became among the first few banks in India to offer online banking facility across the country. The
Bank has installed more than 800 ATMs and is part of the State Bank Group networks of ATMs.
Internet Banking has been extended to all branches for retail and corporate customers. The Bank
has rolled out Business Process Reengineering (BPR) initiatives to improve operational efficiency
and better customer service and is committed to offer value added services to its customers.

The Bank has been earning profit continuously since its inception and its business has crossed
the level of Rs 69,000 crore with a net profit of Rs. 403.45 crore at the end of March,2009.

KEY PERSONS :
Shri TCA Ranganathan, Managing Director

Shri Supratik Chatterjee, Chief General Manager

Sbi

SBI DFHI LTD is a State Bank of India Group Company with impeccable lineage, created out of
the merger in 2004 of the two leading players in the domestic Money and Debt markets, the RBI
promoted Discount & Finance House of India (DFHI) and SBI Gilts Ltd, a subsidiary of India’s
largest commercial bank. It is a market leader in the Primary Dealer segment of the domestic
debt market, with a Net Worth of Rs.1084 crores (as on 31st March 2009) and a presence in all
major financial centers of the country. It posted an impressive total turnover of Rs.62,138 crores
in Government Securities and Rs.25,139 crores in Treasury Bills respectively.

As Primary Dealers, we trade in Fixed Income Securities (Treasury Bills, Government securities,
State Development Loans, Non SLR Bonds, Corporate Bonds) and Short Term Money Market
instruments (Certificates of Deposit, Commercial Paper, Inter- Corporate Deposits, Call & Notice
Money Deposits). We are active in retailing of Government securities, including small lots, and
are the distributors of Mutual Fund products of all leading funds. We also actively participate in
the domestic interest rate derivatives and equities/equity futures markets.

The Company is led by a team of experienced professionals, backed by strong research

capabilities and driven by core-values. The affairs of the Company are managed by the MD &
CEO , an official of the rank of a Deputy Managing Director in SBI, under the overall supervision
and guidance of a Board of Directors chaired by the Chairman of SBI and comprising of reputed
market professionals and academicians of eminence

As an investor, you derive the following advantages in transacting with us

•A SBI group company with the highest market standing.
• Complete safety of your investments- the strongest Networth amongst Primary Dealers.
• Fully transparent prices, no hidden costs.
• Wide range of products and services to meet your investment needs.
• Presence in all major centres.

The Investment Banking Subsidiary of State Bank of India (SBI), the largest and oldest Bank in
India and also the exclusive Indian member of M&A International, a federation of M&A firms
across 39 countries. Headquartered in Mumbai, has office across India and in London. Ranked
Global No #1 Project Finance and Debt Syndication.

Specialties
Debt Syndication, Project Finance, Capital Markets, M&A

SBI Mutual Fund (SBI MF) is one of the largest mutual funds in the country with an
investor base of over 5.8 million. With over 20 years of rich experience in fund
management, SBI MF brings forward its expertise in consistently delivering value to its
investors.
SBI MF draws its strength from India's Largest Bank State Bank of India and Société
Générale Asset Management, France.

About SBI Cards

1998 saw a new vista opening for the Indian credit card users. GE Capital Services, the largest
issuer of private label credit cards in the world and State Bank of India, the largest Indian bank
created two companies to address the market: namely, SBI Cards and Payment Services Ltd.
(SBICPSL) and GE Capital Business Process management Services ltd. (GECBPMSL). The joint
venture was set up to leverage the brand equity, customer relationship and the unparalleled
network of SBI and the technological processes and service capabilities of GE Capital to offer you
products that are value for money and supported by quality and service.

The State Bank of India - Bankers to the Nation

State Bank of India is the largest bank in India in terms of profits, assets, deposits, branches and
employees. As of 31st March, 2000, the Bank possessed total assets worth Rs.2,615,049 million
(US$59,951 million) and total deposits worth Rs.1,968,211 million (US$45,122 million).

Since its inception in 1806 as the Bank of Calcutta, it has gone from strength to strength and has,
over the years, richly merited its status as the flagship of Indian banking.

With a network of over 9,000 branches in India and 51 foreign offices in 32 countries, the Bank
commands about one-fifth of the total deposits and loans in all scheduled commercial banks in
the country. The Reserve Bank of India is the single largest shareholder of the Bank. SBI's shares
and bonds are listed for trading on all the major Indian stock exchanges. Its GDR is listed on the
Luxembourg Stock Exchange.

The State Bank of India has pioneered innovative measures and contributed significantly to the
growth of the Indian economy. It has been taking new initiatives with the changing economic
environment and is poised to establish itself in the new millennium as a premier Indian financial
services group with a global perspective and world class standards of efficiency.

Efficiency, Trust & Reliability

These are words that epitomise the State Bank of India. Known for its efficient customer service
and commitment to excellence, it has grown immensely since its inception to become India's
largest bank, with over 80% of the top corporate companies as its clientele. For more information
on SBI click here.

About GE Capital
GE Capital Services is a global diversified financial services company with 28 distinct businesses.
With assets of US $300 billion,GE Capital Services had net earning of US $3.8 billion and
achieved a 23.5% return on equity in 1998. Its businesses are in the areas of Equipment
Management, Consumer Services, Mid-Market Financing, Specialised Financing and Specialty
Insurance and include global operations in Europe, Asia and Latin America.

GE Capital Services India

GE Capital Services India was established in October 1993 as a wholly owned subsidiary of GE
Capital Services. It is one of the largest capitalised financial services companies with a combined
and estimated asset base of Rs. 3,500 crore (Rs.35 billion) and a credit rating of AAA (SO) by
CRISIL and Duff & Phelps (highest safety). GE Capital Services India has been delivering
innovative financial solutions since 1993. We offer a kaleidoscopic range of products and services
that meet the diverse needs of corporate and retail customers. The major businesses in India are:
• GE Money
GE Money is the new consumer finance brand of GE. One of the 11 GE businesses, it is
a leading provider of credit services in more than 40 countries with assets more than
US$105 billion. It meets the needs of over 100 million customers world wide through
product offerings of private label credit cards and promotional retail finance to the world's
leading retailers and manufacturers, personal loans, auto financing, corporate cards for
commercial customers, and diversified financial products directly to consumers. In
December 2004, GE Money Home Loan and GE Money Personal Loan were launched In
India with strong operations backed by the latest information technology support.
Products such as, New & Used Car Loans, Auto refinance, Two wheeler loans, Loans
Against Property, Consumer Durable Loans and CRM products are under GE
Countrywide at present. These products will be migrated to GE Money in a phased
manner over 2005.

With strong joint venture partner in Maruti and expertise spanning geographies, GE
Money continues to add value to its customers and partners in India through Maruti
Countrywide.

• Commercial Finance
GE Capital Transportation Financial Services, provides innovative financial solutions for
the transportation segment. It has recently ventured into the construction and mining
equipment financing business.

• Commercial Finance
Commercial Finance offers a range of financial services, which include Corporate
Finance, Infrastructure Finance, Acquisition Finance, Private Equity and Syndication
Services for a broad cross-section of Indian industry.

The Corporate Finance business focuses on providing finance to corporates to meet their
working capital needs, capital expenditure plans, project finance and general corporate
requirements.

Infrastructure Finance provides structured finance to the power and telecom sectors.

Commercial Finance also provides Investment Support for equity investment and
Acquisition Finance through loans against equity-linked debt instruments such as
Convertible Bonds, Redeemable Preferred Stocks, Optionally Convertible Debentures,
and Equity Collateralised Loans.

The Private Equity business focuses on helping closely held unlisted companies who are
significantly expanding their businesses by raising the necessary funds through private
placement of equity.

Syndication Services offer advisory restructuring, placement and distribution of corporate

finance products across a wide segment of institutional and retail investors.

• Business Process Management Services

GE Capital International Services was established as a wholly-owned subsidiary in
October 1996 to assist client organisations maximise speed and efficiency of current
internal and external processes with a cost, quality and service advantage. The business
currently offers world class business process management services and back office
support to meet the diverse needs of its international and domestic customers. It provides
back office processing services to GE companies in America, Europe and Asia Pacific.
The focus is to develop Centres of Excellence in Transaction Processing, Accounting
Services and Call Centres to service both GE and non-GE companies worldwide.
 It has established its first world class remote processing centre in Gurgaon (near Delhi)
and is in the process of setting up another world class facility at Hyderabad (Andhra
Pradesh) to cater to the expansion of its remote processing services business. Also
established a Decision Science Centre in Bangalore that is responsible for developing
predictive tools and models for all aspects of customer management.

To know more about our business, visit gecapitalindia.com

Our Mission: "To emerge as the leading company offering a comprehensive range of life
insurance and pension products at competitive prices, ensuring high standards of customer
satisfaction and world class operating efficiency, and become a model life insurance company in
India in the post liberalisation period".

Our Values :

• Trustworthiness
• Ambition
• Innovation
• Dynamism
• Excellence

SBI Life Insurance Company Limited is a joint venture between the State Bank of India and BNP
Paribas Assurance. SBI Life Insurance is registered with an authorized capital of Rs 2000 crores
and a Paid-up capital of Rs 1000 Crores. SBI owns 74% of the total capital and BNP Paribas
Assurance the remaining 26%.

State Bank of India enjoys the largest banking franchise in India. Along with its 6 Associate
Banks, SBI Group has the unrivalled strength of over 16,000 branches across the country,
arguably the largest in the world.

BNP Paribas Assurance is the life and property & casualty insurance unit of BNP Paribas - Euro
Zone’s leading Bank. BNP Paribas, part of the world’s top 6 group of banks by market value and
a European leader in global banking and financial services, is one of the oldest foreign banks with
a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest life
insurance company in France, and a worldwide leader in Creditor insurance products offering
protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries mainly
through the bancassurance and partnership model.

SBI Life has a unique multi-distribution model encompassing vibrant Bancassurance, Retail
Agency, Institutional Alliances and Corporate Solutions distribution channels.

SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance products
along with its numerous banking product packages such as housing loans and personal loans.
SBI’s access to over 100 million accounts across the country provides a vibrant base for
insurance penetration across every region and economic strata in the country ensuring true
financial inclusion.
Agency Channel, comprising of the most productive force of more than 68,000 Insurance
Advisors, offers door to door insurance solutions to customers.

State Bank of Saurashtra to merge with State Bank of India

Central Board of State Bank of India on August 25 2007, gave it's go
ahead to the merger of State Bank of Saurashtra with itself. Merger
is subject to approval of the government and Reserve Bank in
accordance with State Bank of India Act, 1955.. In a communication
to the Bombay Stock Exchange, SBI said its central board on August
25 approved the merger, subject to approval of the government and
Reserve Bank in accordance with State Bank of India Act, 1955.

"This is the beginning of whole group's restructuring. SBS is the

smallest of the seven associates and based on the experience we
will look at other banks," said SBI Managing Director T S
Bhattarcharya.

The other associates are State Bank of Travancore, State Bank of

Mysore, State Bank of Bikaner and Jaipur, State Bank of Hyderabad,
State Bank of Indore and State Bank of Patiala.

Of these, the first three are listed on stock exchanges. SBI's interest
in the associate banks ranges from 75-100 per cent. After SBS, SBI
is likely to merge the other three unlisted arms and then follow it up
with the listed ones.

SBS has 460 branches and the merger would help eliminate
duplication of branches in the same area. Its net profit rose 45 per
cent to Rs 87.4 crore in 2006-07. The bank has paid-up equity capital
of Rs 314 crore. The total deposits stood at Rs 15,804 crore while
total advances were at Rs 11,081 crore.

The merger would help SBI consolidate its position as the country's
biggest bank and widen the gap with nearest rival ICICI Bank. With
9,579 branches, SBI has total assets of Rs 5,66,565 crore and
posted a net profit of Rs 4,541 crore as on March 31, 2007. ICICI TEST
Bank had assets of Rs 3,44,658 crore and posted a net profit of Rs
3,110 crore in 2006-07. I
The merger comes at time when the bank has decided to go in for
big expansion. The bank is also looking at freeing up capital by
setting up a holding company for its life insurance and asset
management businesses. SBI’s move to merge its arms could pave
the way for further consolidation in the industry, which faces
imminent competition from foreign banks from 2009.
!.“The rural Development Program” initiated by U.P government for the integrated development of
villages with the help of …?
A) ICICI B) SBI C) RBI D) SIDBI E) NABARD
Ans. E
2. State Bank of India opened it’s ……………….branch Puduvalai, SivaGanga district, Tamilnadu?
A) 1000 B) 70,000 C) 100 D) 10000 E) 1, 00,000
Ans. D
3. Recently in which country the plastic money introduced and due to which the Reserve Bank of India
also wanted to introduce?
A) Nepal B) Malta C) Australia D) France E) Cyprus
Ans. C

4. By providing more services to its Customers, Which Public Sector Bank intends to introduce the
programme “Parivarthan”?
A.Canara Bank B) SBI C) SBH D) UTI E) IDBI
Ans. B

5. Which bank received the Best Bank Award for Initiatives in Mobile Payments and Banking"
-2009 award?
A) Canara Bank B) Corporation Bank D) ICICI D) AXISE) Allhabad Bank
Ans. C

6. A Magazine released from London by name “THE BANKER” releases from London marked a
Public sector bank from India as the “Best Bank-2008”. Which bank received that appreciation?
A) SBI B) IDBI C) AXIS D) HDFC D) DENA E) YES
Ans. A

7. Which Bank is the biggest Private bank lender in India?

A) HDFC B) LVB C) ICICI D) INDUSIND E) CITI
Ans. C

8. Of which of the following statements is true about 11th five year plan (2007-2012)?
A) Achieve 4%growth in Agriculture sector B) to double the percapita income by 2017

C) To reduce the educated unemployment below by 5% D) To give Broadband service to

all villages by 2012 E) All of above
Ans. E
9. 13th Finance Commission is headed by…………………..?
A) Vijay C Kelkar B) B.N.Srikrishana C) Abhijith sen d) Jagannadha Rao E)
Hariharan
Ans. A

10.Prime Minister’s Employment Generation Proramme ( PMEGP) is the merger of………?

A) PMRY&REGY B) PMRY&IAY C) IAY&CMEY D) IRDP&IAY E)NRY&CESS
Ans. A

11.Which Mandal/Taluk, stood first in the execution of programmes under National Rural
Employment Programme by providing 2.87 lakh working days in the year of 2008-2009?
A) Sirpa, Haryana B) Ernakulam, Kerala C) Khammam,A.P D) Singur, WestBengal
E) Kurg, Karnataka
Ans. C

12. Which Finance Minister at the center introduced the Central Budget for more times?( 8
times)
A) Chidambaram B) Manmohan Singh C) Morarji Desai
D) R.venkratraman E) C.RangaRajan
Ans. C
13. The Financial Year runs between…………..?
A) Jan-dec B) Apr-Apr C) Apr-Mar D) Jun-May E) Dec-Jun
Ans. 5
14. To keep stock of grain to protect our country, against starvation during natural calamities,
the scheme started was………….?
A) Rural Seed Hoarding Scheme B) Regional Grain Bank Scheme C) Central
Pulse Hoard Scheme
D) Gramina Grain Bank E) Village Grain Bank scheme
Ans. 5
15. Which hotel was partially destroyed and on which the Operation Cyclone was conducted in
26/11 attacks?
A) Sherton B) Obroi C) Taj D) Welcome E) ITC
Ans. C

16. Which organization is going to introduce , EURO IV Standard petrol and diesel in 13 cities
across the country by early 2010?
A) ONGC B) HP C) IOC D) RPC E) SHELL
Ans. C

17. Which company acquired the beleaguered Satyam group of Computer services by taking
51% stake in it?
A) L &T B) GMR C) TECH MAHENDRA D) TCS E) INFOSYS
Ans. C

18. Which cyclone attacked Tamilnadu and the coastal districts of Andhra Pradesh and caused
the destruction of crops?
A) Gustav B) Nargis C) Nisha D) Kaimuck E) Aile
Ans. C
19. Which state attracted more investments in the all sectors in the financial year of 2008-
2009?
A) west Bengal B) Uttar Pradesh C) Andhra Pradesh D) Delhi
E) Maharastra
Ans. C

20. Which of the following organizations said that half of the population is not getting enough
food?
A) IMF b) IBRD C) UNOD) ADB E) US BANK
Ans. C
21.Sunderbans in the state of West Bengal belong to the group of …………….?
A) Monsoon B) Deciduous C) Xerofatic D) TidalE) Equatriol
Ans. D
22. 96th National Science Congress ( Feb16-28 2009) was held at……………?
A) Hyderabad B) Vishakapatnam C) Calcutta D) Shillong E) Tiruvananthapuram
Ans. D

23. Who was recently appointed as Special Senor Advisor to Miguel D.Escoto, the president of
General Assembly?
A) kamalesh sharma B) Deepa gopalan C) Nirupama sen D)vikram pandit E)
Manjula sud
24.2009 Annul session of the world Bank & IMF intended to mobilize 45 $ dollars to
infrastructure facilities and 12 billion dollars to agriculture. This summit was held
at…………………….?
 A) new York B) Washington c) Carolina D) sanfransico E) Alaska
Ans. C
25.Stability, Growth, Jobs are the main projections of the London Summit 2009, held on APR 2,
2009. This summit is of…….?
A) G-8 B) G-77 C) EU D) G-20 E) Arab league
Ans. D

TEST II
1) Neel kumar katyal is the new appointed ………………… of U.S.A, Who is Indian?
1. General Adviser in white house 2. Neuron surgeon 3. Vice-president
4. Dep.solicetar general 5. Defence minister
Ans. 4

2) To which country the supply of gas was stopped by Russia on the allegation of theft?
1. Iran 2. Iraq 3. China 4. India 5. Ukraine
Ans. 5

3) Gross National Happiness Policy is being adopted by………………….?

1. Nepal 2. Bhutan 3. Pakistan 4. Sweden 5. Norway
Ans. 2

4) According to Status of Forces Agreement the U.S.A withdraws its Army from Iraq by 31
Dec…………?
1. 2011 2.2009 3.2010 4.2015 5.2020
Ans. 1

5) UNESCO observed 2008 year as the year of………………….?

1. Languages 2. Potatoes 3. Industrial safety 4. Agricultural safety 5. Polar year
Ans. 1

6) According to UNICEF reports, the major cause for the death of infants is…………….?
1. Pregnancy 2. Lung problems 3. Diaoreaha 4. Aids 5. Brain problems
Ans. 1

7. Of the following statements, which statement is correct, relating to the second summit of
BIMSTEC?
1. It means Bay of Bengal Initiative for Multi Sectoral technical and economic Co-operation (1997
2. The summit was held on Nov 13, 2008 3. Passed the declaration against terrorism
4. Want to set up a peramenent secretariat and strive to fight against terrorism
5. All of the above
Ans. 5

8. The first India-Africa Forum summit, organized by 14 countries, is held at…………..?

1. Nairobi 2. Cairo 3. Johens berg 4. Mumbai 5. New Delhi
Ans. 5
9. Konkan is the joint military exercise of India and of………..?
1. Britain 2. U.S.A 3. China 4.China 5.Egypt
Ans. 1

10. In how many states the delimitation process of constituencies is postponed?

1. 4 2. 3 3. 11 4.5 5.6
Ans. 4

11. EVM stands for………..?

1. Electronic voting Memory 2. Electrical Voting Machine
3. Electronic voting Mean4. Electronic vote Mouse 5. Electronic voting Machine
Ans. 5

12. National Means cum Scholarship scheme introduced to …………………?

1. Reduce the literacy rate2. Increase the attendance 3. To achieve the 100% primary education
4. To reduce the rate of drop-outs 5. To achieve the 100% primary education
Ans. 4

13. Which Bank is the first of its kind to introduce the chip-based ATM/DEBIT card?
1. ICICI 2. AXIS 3. UTI 4. Andhra Bank 5. Barclays Bank
Ans. 3

14. Reserve Bank of India does not do the duty of………………….?

1. Minting of currency 2. Regulate the credit rate 3. Minting the coins
4. Control the circulation of money 5. Fixes C.R.R
Ans. 3

15. The first kisan SEZ was established in the state of…………………….?
1. Bihar 2. Goa 3. Maharastra 4. Tamilnadu 5.Andhra Pradesh
Ans. 5

16. Which company is exploring the oil from Godavari – Krishna basin in the state of Andhra
Pradesh?
1. IOC 2. ONGC 3. RPCL 4. SHELL 5. HP
Ans. 3

17. The central Human Resources minister Kapil Sibal written …………..
1. Versions of bhagavadgita 2. My country-my life 3. Mohini kahani viswam
4. The idea of Freedom 5. The partial observations
Ans. 5

18. ‘A SPACE ODYSSY’ is the work of ………….?

1. Arthur c Clark 2. Hopkins 3. Madhavan Nair 4. B. Raman 5. Taslima Nasreen
Ans. 1
19. Which country has more internet connections by Jan 2009?
1. Germany 2. India 3. China 4. Russia 5. Australia
Ans. 3

20. Which city in the world gets the power by only means of non-conventional energy?
1. London 2. sirpa3. kujumaki 4. Moscow 5. Paris
Ans. 3

21. The city of fashion in 2008 is…………….?

1. London . Mumbai 3. Canberra 4. Paris 5. new York
Ans. 3

22.132 billion dollars capitalized silk City is being built in ………..?

1. Kuwait 2. India 3. Netherlands 4. Pakistan 5. Iran
Ans. 1

23. Who is the first lady speaker of Pakistan National Assembly?

1. mere kumar 2. shanno devi 3. famida mirza 4. Engochi adichi 5. Taslima
Ans. 3

24. Which south Asian country released RS s1000 coin recently?

1. India 2. Bhutan 3. srilanka 4. Burma 5. Mauritius
Ans. 3

25.In the name of which Indian economist a chair is constituted in the Harvard University?
1. Ragnar Frisch 2. Marshall 3. Ranga Rajan 4. Amartya Sen 5. Keynes
Ans.4

TEST III

1. Which is the oldest mint in India?

1. Hyderabad 2. Dewas 3.Mumbai 4.Noida 5.Hoshangaband
Ans. 3

2. The college of Agricultural Banking is situated at.............?

1. Hyderabad 2. Mumbai 3. Kolkatta 4. Bangalore 5. Pune
Ans. 5
3. According to Micro Small Medium Enterprises Development Act 2006, the capital of Small
scale Industries raised from RS. 1 crore to..?
1. 5 cr 2. 3 cr 3. 6 cr 4. 10cr 5. 14 cr
Ans. 1

4. Jawharlal Nehru University is at.........?

1. Mumbai 2. New Delhi 3. Kolkata 4. Coachin 5. Visakapatnam
Ans. 2

5. The present number of goods remained in the reserve list of SSI goods?
1. 14 2. 18 3. 24 4.101 5. 21
Ans. 5

6. The approximate share of Service sector to the third sector in India is nearer to………?
1. 21% 2. 32% 3.63% 4.11% 5.50%
Ans. 5
7. Which theory suggests that the investment in the Large Scale Industries is necessary for the
development?
1. Major Push 2. Pull 3. Big Push 4. Giant 5. Robust
Ans. 3

8. How many constituencies are there in 2009 General Elections in the S.C. Category? /
1. 47 2. 79 3. 84 4. 41 5. 412
Ans. 3

9. In 81 Oscar Film Awards, which Indian short Film bagged the best Documentary Short Film? /
1. Slum dog Millionaire 2. Man on wire 3. Departures 4. Smile Pinky5. Wall-e
Ans. 4

10. The origin of Spices by means of natural selection is the work of…..?
1. Galileo 2. Louise Pasture 3. Leaven Halk 4. Einstein 5. Charles Darwin
Ans. 5
11. It is the practice that the president of United States of America takes the oath on
1. July 4 2. Dec 31 3. Jan 16 4. Jan 20 5. Aug 15
Ans. 4

12. Which mission is launched from Cape Canerval on Mar 6 2009, to see whether there are any
planets like earth?/
1. Messenger 2. Path Finder 3. kepler 4. Voueger 5. Kupair
Ans. 3

13. Azlan Sha Hockey Cup lifted for the fourth time by……………..defeating the host
Malaysia?
1. India 2. Pakistan 3. Australia 4. Netherlands 5. Canada
Ans. 1

14. 75th Ranji Trophy lifted by……….defeating Uttar Pradesh, held in Jan 2009 at Hyderabad?
1. Punjab 2. Mumbai 3. Kerala 4. Hyderabad 5. Maharastra
Ans. 2
15. In the memory of which great military man, the Indian government issued the postal stamp,
renowned to play a major role in the 1971 Indo-Pakistan war?
1. Kariappa 2. Nachikethan 3. vaidya 4. Manekshaw 5. Krishna rao
Ans. 4

16. In the ending of 3 decades rule, Maldives elected the new president . He is ……….
1. Laghari 2. Khomaini 3. Gadaffie 4. Naushed 5. El Baradi
Ans. 4

17. The guest of Republic Day celebrations on 26 Jan 2009 is Nur Sulthan Nazar Baiv. He is the
president of…?
1. Uzbekistan 2. Iran 3. Italy 4. Azar Baizan5. Kazikistan
Ans. 5

18. Jan 24th of every year to be celebrated as ………………………….?

1. National Literacy day 2. National Education day 3. National martyr’s day
4. National Army day 5. . National girl child day
Ans. 5

19. Financial Literacy and Credit Counseling Center is established by R.B.I to give advice to
…………..?
1. banks 2. financial institutes 3. exporters 4. importers 5. investors
Ans. 1

20. The second stage testing of Indian light weight Combat Aero plane was completed by Mar 5
2009. it is..?
1. Lakshya 2. Pruthvi 3. agni 4. k-32 5. Tejas
Ans. 5
21. Whose Name was deleted from the Red corner notice list, alleged to receive kickbacks in
Bofors deal?
1. Dawood Ibhrahim 2. Chota Shakiel 3. Khatorcchi 4. Chora raja 4. Mohhamad Ifthikar
Ans. 3

22. The 60th NATO summit was held in …………….on Apr 4, 2009 ?
1. Pari 2. London 3. Hokkayado 4. Newdelhi 5. Starasburg
Ans. 5

23. UNESCO’s World Press Freedom Award received by ………….?

1. Vikramathunge 2. Albert Duanto 3. mark Tully 4. kuldeep nair5. Vincent smith
Ans. 1
24. France supplied 30 tonnes of Uranium on Apr 9 2009. It stores at the National Fuel Complex
at…..?
1.Hyderabad 2. Kudamkalam 3. Ranabhatt 4. Tarapur 5. Trivendrum
Ans. 1
25. 2009 is celebrated as the year of……..?
1. potato 2. polar 3. languages 4. girl child 5. Agriculture
Ans. 2

TEST IV
1. The head quarters of North Atlantic Treaty organization is at …………..?
1. Katmandu 2. Washington 3. Paris 4. Geneva 5. Brussels
Ans. 5
2. Where India starts a Jaipur Leg factory?
1. South Korea 2.srilanka 3. Angola 4. South Africa 5. Bhutan
Ans. 3

3. India and …..Have 21st century joint vision pact after Manmohan Sing toured this nation in
2008?
1. Pakistan `2. Bhutan 3. Srilanka 4. China 5. U.S.A
Ans. 4

4. Which country is the second highest newspaper market in the world according to W.A.N?
1. China 2. U.S.A 3. India 4. Japan 5. Russia
Ans. 3

5. The biggest tulip garden started by Sonia Gandhi in the sate of……….?
1. Pune 2. Hyderaabd 3. Bangalore 4. Kolkatta 5. Jammu
Ans. 5

6. India celebrated her………….th Republic Day on 26 Jan 2009?

1. 59 2. 57 3.47 4. 61 5. 60
Ans. 4
7. The retirement age of the teaching faculty of Indian Public Health Services Institutes increased
to..?
1. 70 2. 62 3. 68 4. 58 5. 65
Ans. 5

8. Which IIM in India got European Quality Improvement System (EQUIS) Status?
1. Delhi2. Hyderaabd 3. Ahemdabad 4. Chennai 5. Bangalore
Ans. 3

9. Africa meets Asia is a summit of great musicians held in 2008. The summit was held at….?
1. Bangalore 2. Hyderabad 3. Pune 4. maholi 5. simla
Ans. 1

10. Of the following sites which was recognized as the World Heritage site among Indian
Railways?
1. Kalka-Simla 2. CST 3. Darjiling lane4. Ootmakandu lane 5. All of the above
Ans. 5

11. Indian History Congress summit was held at………….in the state of Kerala on Dec 29, 2008?
1. Tiruvananthapuram 2. Eranakulam 3. Cochin 4. Cannore 5. Aluvai
Ans. 4

12. Hoggenkul water project dispute risen between Tanilnadu and the state of …………?
1. Andra Pradesh 2. Kerala 3. Karnataka 4. Orissa 5. Goa
Ans. 3
13. The integrated Greenfield Automotive field is established at………?
1. Wardha 2. Jamshedpur 3. Belguam 4. Vijayawada 5. Aragadam
Ans. 4
14.Bijapur and ………..district of Chattisgarh were selected by central government by central
home ministry to develop them, as they are most effected areas of Naxalites?
1. Siliguri 2. Danthevada 3. Panthnagar 4.Singuru 5. Sandand
Ans. 2

15. Which state speaker resigned on the allegation that he harassed a woman in his peshi?
1. Andhra Pradesh 2. Tamilnadu 3. Orissa 4. West Bengal 5. Delhi
Ans. 3

16. Jallikattu is the play cum festival came in to controversy but allowed by the supreme court
with some limitations. This one is celebrated in the state of ……………?
1. Andhra Pradesh 2. Kerala 3. Orissa 4. West Bengal 5. Tamilnadu
Ans. 5

17. Which state government decided to apply reservation system in the outsourcing system also?
Andra Pradesh 2. Kerala 3. Uttar Pradesh4. Orissa 5. Goa
Ans. 3

18. NTPC started its second phase of Mega thermal project in the state of Bihar. It is….?
1. Kosi 2. Baglihar 3. Punatsugu 4. Barah 5. Metor
Ans. 4
19. The future projects of ISRO are……….
1. Launch Mars orbitor ( 2009-2015) 2. Launch solar mission by 2012
3. Chandrayan -2 4. send manned moon mission by 2020 5. All of the above
Ans. 5
20. As she suggested the usage of Garlic in the place of chemicals, an asteroid named after……?
1. Nandini sarma 2. kalpana chawla 3. sunitha Williams4. Indira sinha5. sonal sha
Ans. 1

21. According to Global Hunger Index (G.H.I), India occupied 66th rank. Maritus occupied the
first rank. And the last rank got by………?
1. congo 2. china 3. france 4. Russia 5. Somalia
Ans. 1

22. The largest bank in the private sector is………………?

1. uti 2. axis 3. hdfc 4. lic 5. icici
Ans. 5

23. In Slumdog Millionaire film, the quiz master character acted by……………….?
1. Amitab Bacchan 2. Rajkapoor 3. Sharukh Khan4. Anil kapoor 5.Mahendra Kapoor
Ans. 4
24. Which one among the following is not the field to be given in Nobel prizes?
1. physics 2. chemistry 3. mathematics 4. literature 5. Economics.
Ans. 3

25. Which bank ATM has in orange colour?

1. SBI 2. ICICI 3. ING VYSYA 4. HDFC 5. ANDHRA BANK

TEST V
1. Which committee suggested having 10 rupee coins, in the place of currency bills?
1. Abhijith sen 2. Kelkar 3. Tarapore 4. Rangarajan 5. Persimistri
ANS. 3

2. Which Indian bank has the largest number of branches outside India?
1. Allahabad bank 2. Corporation bank 3. S.B.I 4. I.C.I.C.I 5.H.D.F.C
ANS. 3

3. Which Banks in the world suggest that India is the better country to have long time
investments?
1. American 2. Australian 3. Japanese 4. Russian 5. Canadian
ANS. 3

4. Of all the banks in India, which bank ATM has the orange colour?
1. S.B.I 2. ICICI 3. HDFC 4. Corporation Bank 5. ING Vysya
Ans. 5

5. Name the bank which was awarded the best ATM Maintenance Award-2008 by the famous
magazine Business Line releases from England?
1.AXIS 2. Bank of India 3. Allahabad Bank 4. ICICI 5. Corporation Bank

7. Which scheme provides 35 kgs of Food Grains to BPL families by Indian government?
1. Jawahar Rojagar Yojana 2. Dhanalaxmi 3. Amtyodaya Anna Yojana 4. National
Pension Scheme 5. Indian Ration scheme
ANS. 3
8. Among the following Indians , Who is the first Indian to receive the Golden Globe Award ?
1. A.R.Rahaman 2. Jakir Hussain 3. Sivamani 4. Latha Mangeshkar 5. Ilaya Raja
Ans. 1

9. In which city, the Brail Foot Ball Academy was established ?

1. Kolkatta 2. Mumbai 3. Hyderabad 4. Goa 5. Chennai
Ans. 4

10. According to recent studies, which country bypassed Germany to become the third biggest
economy of the world?
1.China 2. Japan 3. India 4. Russia 5. Australia
Ans. 1

11. By and large which country became the threatening factor to U.S.A, in the eastern globe in all
means?
1. Pakistan 2. North Korea 3. India 4. Russia 5.china
Ans. 2
12. The following two countries established the embassies in the other country, by ending the
differences arisen in the last decade?
1. Syria, Saudi 2. Saudi, Israel 3. India, Pakistan4. U.S.A and Canada 5. Syria, Lebanon
Ans. 5

13. The voters eligible to participate in the 15th Loksabha elections?

1. 60 cr 2. 100 cr 3. 120 cr 4. 84 cr 5. 72 cr
Ans. 5

14. Global studies say that the percentage of forests in the country must be 33 %. In India, the
percentage of forests is.,?
1. 44% 2. 33% 3. 21% 4. 41% 5. 12%
Ans. 3

15. Recent survey conducted by the magazine Economics Intelligence Unit, the costliest city in
the world is……?
1. Washington 2. New York 3.Tokyeo 4. New Delhi 5. Moscow
ANS. 3

16. 6th chief of R.S.S is Mohan Bhagavath. R.S.S stands for………………….?

1. Rastriya swayamsevak sangh 2. Reliance Stainless steel 3. Recurring Saving Scheme
4. Religion and spiritual society of India 5. Rastriya swayamsevak samstha
Ans. 1

17. Garuda shield is the joint Military exercise of India and ………………………?
1. U.S.A 2. China 3. Indonesia 4 Britain 5 France
ANS. 3

18. The first elected President of any political party in India is Dr.Jayaprakash Narayan . He
founded………….?
1. Loknayak 2. Lokjana 3. Lokmanch 4. Loksakthi5. Loksatta
Ans. 5

19. RPCL became successful in the finding of oil fields in K.G. basin. K.G means?
1. Kaveri-Godavari 2. Kaveri-Gandak 3. Krishna-Godavari 4. Kalindi-Godavari
5. Kosi-Gandak
ANS. 3

20. Reverse Repo is the interest rate as ………………………………………………………….?

1. RBI borrows money from world bank for the short purpose
2. RBI borrows money from Govt. for the short purpose
3. RBI borrows money from banks for the short purpose
4. Govt. borrows money from for the short purpose
5. RBI provides loan to individuals for the short purpose
ANS. 3

21. To measure the inflation in India, ‘Whole Sale Price Index’, which goods occupy 63.5
percentage of weightage?
 1. Oil 2. Consumer goods 3. Food grains 4. Housing Appliances
5. machine produced goods
Ans. 5

22. 11th five year plan add the power of……………………..to Indian Power Sector production?
1. 77,577 MW 2. 60,500 MW 3. 45,000 MW 4. 90, 000 MW 5. 12,050 MW
Ans. 1
23. The first Knowledge museum was established in India at ………………?
1. Delhi2. Mumbai 3. Kolkatta 4. Pune 5. chandigarh
Ans. 5

24. Operation Cast Lead is the operation conducted by the………………..?

1. Indian Army attacks on Punjab terrorists
2. U.S.A attacks on Iraq terrorists
3. Entering of Pak army in Lal Mosque and killing the terrorists
4. operation of China’s Army on Bhutan revolutionaries
5. Israel attacks on the Hamas terrorists in Gaza Strip
Ans. 5

25. Pradhan committee submitted its report on………………..?

1. Mumbai attacks 2. increasing the prices 3. banking 4. oil 5. Manipur attacks
Ans. 1

TEST VI

1. A foreign Bank should bring ………dollars to business to India in the first year?
1. 10 million 2. 20million 3. 30 million 4. 1 billion dollars 5. 21 million dollars
Ans. 1

2. The winner of Australian junior open Title won by Yuki Bambri belongs to the state of……….?
1. Haryana 2. Andhra Pradesh 3. Jammu 4. Karnataka 5. Delhi
Ans. 5

3. Which country had given the order to buy DRUVA helicopters from HAL ( INDIA) ?
1. England 2. U.S.A 3. Equodar 4. Russia 5. China
Ans. 3
4. Earth hour is celebrated on……….?
1. Mar 24 2. Mar 23 3. Mar 14 4. Mar 18 5. Mar 28
Ans. 5

5. 5600 MW capacity Pancheswar project is the joint venture of India and ……..?
1. Bhutan 2. Bangladesh 3. Mynmar 4. Pakistan 5. Nepal
Ans. 5

6. The first Armed forces Tribunal is headed by……..?

1. K.G.Balakrishnan 2. A.S.Annand3. Y.V.Chandra Chud 4. G.Sinha 5. A.Mathur
Ans. 5
7. Lisbon Treaty belongs to the ……….?
1. NATO 2. EU 3. CENTO 4. UNO 5. AU
Ans. 2

8. The U.S.A.Democratic Party’s symbol is………..?

1. Dog 2. Elephent 3. Computer 4. Tiger 5.Ass
Ans. 5

9. India becomes the top producer of the steel by………..in the world?
1. 2012 2. 2013 3. 2014 4. 2015 5. 2020
Ans. 4

10. In srilanka, the tamilians dominated in the area of……….?

1. north west 2. south east 3. south west 4. north east 5. north central
Ans. 4

11. Telayya power project with the outlay of Rs. 20,000 crores in Jharkahand belongs to …….?
1. NTPC 2. LANCO 3. GVK 4. VTPC 5. RELIANCE
Ans. 5

12. 90 billion dollars worth an industrial corrider is being built between Delhi and …….with the
co-operation of Japan.
1. Kolkatta 2. Pune 3. Agra 4. Mumbai 5. Jodhpur
Ans. 4

13. The miimum capital of Medium Term capital industry is………?

1. 1 cr 2. 2 cr 3. 3 cr 4. 4 cr 5. 5 cr
Ans. 5

14. 100th Indian Constitution Bill refers to…..?

1. inclusion of languages 2. woman reservation 3. information bill 4. compulsory
education 5. none
Ans. 1

15. In May 2009, R.B.I withdrawn Special Market Operations ( SMO ) for supporting the……
sector?
1. Steel 2. Coal 3. paper 4. Petrol Refine Sector 5. Defense
Ans. 4

16. Of the following banks, which one among the following was closed in U.S.A by Jan 1, 2009?
1. Lehman Brothers 2. Silverton Bank 3. Citizens Community Bank4. America West Bank
5. All of the above
Ans. 5
17. ………the former Governor of R.B.I was appointed as the member in UN panel of economists
to suggest measures to deal with current economic crisis?
1. Bimal Jalal 2. C.D.Deshmuck 3. D.Subba Rao 4. Manmohan Singh 5.
Y.V.Reddy
Ans. 5

18. Indira Gandhi National Widow Scheme provide pension of Rs. ….to the age of 40-60 years of
age?
1. 100 2. 300 3. 500 4. 200 5. 1000
Ans. 4

19. Forbes Magzine mentioned ………….as one of the richest Indian Billionaire heiress?
1. Vanisha Mittal 2. Iswarya Roy 3. Kokila Ben 4. Usha Sandhya 5. Gayatri devi
Ans. 1

20. Which Indian Player is the only non-Russian to become the only FEDE chess Oscar winner for
the 5th time?
1. Koneru Hampi 2. Harikrishna 3. Viswanath Anand 4. Baruva 5. none
Ans. 3

21. Of the following which statement is incorrect?

1. INS Virat is warship 2. INS Sivalick is missile boat 3. INS Akula is made in France
4. INS Godavari is Air Craft Carrier 5. All of the above
Ans. 5

22. On Apr 18 2009, the Indian branch of London Court Of International Arbitration is
estbablished at….?
1. Mumbai 2. Kolkatta 3.Chennai 4. Pune 5. New delhi
Ans. 5

23. In the alternative sources of energy, Ethanol as a viable bio-fuel can be obtained from…….?
1. Soya 2. potato 3. Beetroot 4.Sugar cane 5. Neem
Ans. 4

24. On Apr 19, 2009 Asian Billiards Championship-2009 clinched by………?

1. Geeth Sethi 2. Chandulal 3. Michel Andrew 4. Ramiz Anand 5. Pankaj Advani
Ans. 5
 TEST VII
1. The slogan of Jun 5th , 2009 World Environment Day is………….
1. Do not cause damage to climate, It hurts you
2. Dream world from climatic change 3. one world and one globe
4. This is your planet and love it 5. Your planet needs you-unite to combat climate change
Ans. 5

2. According to Indian Statistatical senses the percapita income of India risen to RS. 37,490
(2008-209). The average Indian income risen to Rs……………..?
1. 3000 2. 2500 3. 5000 4. 6000 5.1000
Ans. 1
3. According to WHO records, the life span of Indian man is 63 years. And the life span of Indian
woman is……….?
1. 65 2. 60 3. 81 4. 45 5. 66
Ans. 1

4. First H1N1 case in India registered at…………………………..in India, according to National

Institute of Communicable Diseses?
1. Hyderabad 2. pune 3. Mumbai 4. nagpur 5. lucknow
Ans. 1

5. New Pension scheme introduced by the central governemet is effective from 2009. which
among the following is incorrect relating to that scheme?
1. This scheme can be opened by any citizen of the country.
2. This one can be opened by man and woman 3. the ages between 18-55
4. This scheme is not applicable to the army personnel
5. The withdrawals allowed in the mid periods also
Ans. 4

6. The Reserve Bank of India projected the GDP growth of......................as per its annual growth
according to Annual Policy statement 2009-2010?
1. 6% 2.4% 3. 5.1% 4. 7.9% 5. 5.7%
Ans. 5

7.Project Kuarava is the project to.....................................

1. gnome sequencing project on Zebra Project 2. Hi-tech project launched by Hyderabad police
to nab the culprits 3. The project of ISRO to locate bactiria in the space
4. to capture the hoarders of food grains 5. zee t.v show to interview the political leaders
Ans. 1

8. Among the following which player was declared as the Golden Player of 2009 Indian Premier
League?
1. Adam Gilchrist 2. Brain Lara 3. Sachin 4. Dhoni 5. M.Hayden
Ans. 1

9. State Bank of India and Macqurie, the famous financial powerhouse want to float $ 1 billion
venture fund to boost infrastructure in India. Macquire belongs to.....?
1. U.S.A 2. India 3. Italy 4. Australia 5. Canada
Ans. 4

10. Which country inagurated the first floating nuclear plant in the world?
1. Japan 2. Britan 3. Russia 4. France 5. China
Ans. 3

11. The highest number of candidates an electronic voting machine can support
is............................. If the number exceeds this , manual ballot is used/
1. 51 2. 62 3. 91 4. 100 5. 64
Ans. 5

12. which is India's largest international trading organisation?

1. IOC 2. ONGC 3. MMTC 4. BHEL 5. DRDO
Ans. 3

13. Which among the foloowing is correct regarding the Deepak Parekh committe?
1.to suggest the private banking 2. to make Mumbai as the financial city 3. To suggest measures
for financing the development of infrastructre.
4. to ban the forword trading in agricultural goods 5. to lift the service tax in totally
Ans. 3

14. Which among the following is not correctly matched?

1.BARCLAYS BANK-ENGLAND 2. KOOKMIN BANK-SOUTH KOREA3. ABN-AMRO
BANK – ENGLAND 4. U.K - FTSE 5. U.S.A – Nasdaq
Ans. 3

15. Where the first Export Processing Zone was set up in India?
1. Kakinada 2. visakapatnam 3. Kandla 4. Mumbai 5. Kolkatta
Ans. 3

16. Who among the following is considered to be the founder of World Economic Forum?
1. Robert Zollick 2. Ban ki Moon 3. Klaus Schwab4. Paul Krugman5. Roselana Higgins
Ans. 3

17. In a dry cell, which ofthe following are used as electrolytes?

1. Ammonium chloride and zinc chloride 2. Ammonium chloride and Calcium chloride
3. Ammonium Chloride and Calcium carbonate4. Magnesium chloride and Zinc chloride
5. Zine Phospate and Ammonium Chlorite
Ans.4

18. Devi Ahalya Bhai Holkar Award is given to .....?

1. Peace 2. Literature 3. international understanding 4. Courage and valour 5.
medicine
 Ans. 4
19. 2,10,000 refugee camp with the daily new arrival of 200, is found in............as they are
migrating more from Somalia?
1. nigeria 2. kenya 3. jambia 4. zimbwabe 5. chad
Ans. 2

20. Which country quit the Russian dominatded C.I.S in 2008?

1. Uzbekistan 2. Khazikistan 3. Georgia 4. Azerbaizan 5. Osettia
Ans. 3

21. In which state, India's largest private sector sea port been commissioned recently?
1. Bihar2. Karnataka 3. Tamilnadu 4. Andhra Pradesh 5. Orissa
Ans. 4

22. Audiacity of hope is the book written by................?

1. Obama 2. Hillary clinton 3. Al gore 4. Manmohan Singh
5. Abdul Kalam
Ans. 1

23. In the recent news, we hear the word MCX-SX. It is...........?

1. Bike 2. rocket 3. super computer 4. Stock exchange 5. power plant in U.S.A
Ans. 4

24. Which among the following is wrongly matched?

1. Asian Development Bank- Manila 2. Asia-pacific Economic Co-operation-Singapore
3. World Bank- Newyork 4. ASEAN-Bangkok 5. I.M.F-Washington
Ans. 3

25. The climate change Accountability Bill is passed by................one of it's kind in the world?
1. U.S.A 2. India 3. Italy 4. Australia 5. Canada
Ans. 5

Test VIII
1. Which bank issued the first transparent credit card in the world?
1. CITI BANK 2. AXIS BANK 3. ABN-AMRO BANK 4. HDFC 5. STANDARD CHARTED
Ans. 3

2. The name of the scheduled bank is found in the ……..schedule of R.B.I Act?
1. I 2. IV 3. V 4. VI 5. II
Ans. 5

3. In 2009, which bank claimed that its ATM is nothing but a mini bank?
1. SBI 2. AXIS 3. SBH 4. HDFC 5. UTI
Ans. 4

4. Which bank conducts the internal training program Parivarthan for its employees?
1. SBH 2. ANDHRA Bank 3. SBI 4. Standard Charted 5. ICICI
Ans. 3

5. In TAPI pipe line, T means

1. Turkey 2. Tunisia 3. Thailand 4. Turkmenistan 5. Tajikistan
Ans. 4

6. When Indian Space Age is started?

1. 1958 2. 1969 3. 1957 4. 1921 5. 1981
Ans. 3

7. 97th Indian Science Congress summit held at……..?

1. Visaka patnam 2. Shillong 3. Hyderabad 4. Thiruvananthapuram 5. New Delhi
Ans. 4

8. Who received the prestigious Dronancharya Award recently?

1. Karanam Malleswari 2. Sunil Gavaskar 3. Gopichend Pullela 4. Vijender 5. Karthikeyan
Ans. 3

9. Which among the following is not the term of Indo-Russian Agreement-2008, made during Medvadev visit in
Dec-2008?
1. To give M-18 helicopters to India 2. Help India in the sending of manned mission to Moon
3. Sending of Russian troops to keep peace in Kashmir4. Help India in the developing of KudamKalam reactors
5. Supply 20,000 tones of Uranium
Ans. 3

10. Which parliamentary committee suggested not giving even one acre of fertile Land to the SEZ?
1. Manmohan singh 2. Lallu Prasad Yadav 3. Murali Manohar Joshji
4. Karunanidhi 5. Manohar joshi
Ans. 3

11. Which among the following is not found in the UNESCO’S heritage site in the rail projects in India
is………?
1. Darjeeling rail 2.Mumbai-CST 3. Mahaparinirvan Express
4. Mettupalem Rail Lane 5. kalka-simla
Ans. 3

12. In which year conference, the International Astronomical Union (IAU), remove Pluto from the Planet list?
1. 2001 2. 2002 3. 2009 4. 2006 5. 2010
Ans. 4

13. Which country registers the more polio cases after 1998?
1. Nigeria 2. Iran 3. India 4. England 5. Libya
Ans. 3

14. Which country in the world registers 10 cr populations in 2050, as its population in 2008 is 12.78 cr?
1. Germany 2. China 3. Japan 4. India 5. Iran
Ans. 3

15. At which place the State Bank of India has no foreign subsidiary?
1. London 2. California 3. Canada 4. Mauritius 5. Nigeria
Ans. 1
16. Samanwith is the programme started by which bank, for the welfare of tribal in Orissa?
4. 1. HDFC 2. ANDHRA Bank 3. Syndicate Bank 4. State Bank of India 5. ICICI
Ans. 4

17. Madhu Babu Pension scheme introduced by Orissa government to provide the pension of Rs. 200
to…….patients?
1. Andhra Pradesh 2. Maharastra 3. Orissa 4. Tamilnadu 5. Karnataka
Ans. 3

18. Yashpal committee enquires in to the study of……….?

1. establishment of universities 2. computer technology 3. national educational services
4. recruitment of teachers 5. school bags
Ans. 5

19. Which Indian Student is believed to have more I.Q than Albert Einstein (Einstein I.Q – 160)?
1. Raguhnath Jha 2. Madhav sruthi 3. Pranave veera
4. Maeka gourav 5. Ratna Kumar Mangal
Ans. 3

20. The Assent of Money- A Financial History of world is the book written by?
1. Chidambaram 2. Y. V.Reddy 3. Rangarajan 4. Bimal Jalal 5. manisankar Iyyer
Ans. 5

21. By what year World records 9 Billion population?

1. 2015 2. 2050 3. 2045 4. 2060 5. 2030
Ans. 2

22. Who headed the Boeing India, who is non-resident Indian?

1. Rahul Aditya 2. Indira Nuyu 3. Dinesh Koskar 4. Ranjan Deepak 5. Usha Madokar
Ans. 3

23. Ladli Laxmi Yojana is the scheme of ………………government, for the welfare of the girl child?
1. Uttar Pradesh 2. Madhya Pradesh 3. Maharastra 4. Rajasthan 5. Tamilnadu
Ans. 2

24. Delaram- Geranj is the highway between India and………………..?

1. Pakistan 2. Myanmar 3. China 4. Afghanistan 5. Srilanka
Ans. 4

25. The first solar city in India will ber………….?

1. Delhi 2. Kanpur 3. Hyderabad 4. Faridabad 5. Gurgoan
Ans. 5
 TEST IX
1. On Jun 24, 2009 how many days agenda fixed by the textiles ministry to achieve the
results in the ministry?
1. 200 2. 300 3. 400 4. 50 5. 100
ANS. 5

2. The food crisis affect ……….cr people according to F.A.O statistics?

1. 50 2. 250 3. 400 4. 175 5. 100
ANS. 5
3. Of the following statements which one is correct to the Bailout package declared by
the center on Dec 8, 2008
1. the refund of service tax paid by the exporters 2. 2% exemption of export taxes on
labour oriented textile units. 3. to withdraw the export duty on iron
4. 20,00 cr more allocation on non- plan expenditre. 5. all of the above.
ANS. 5

4. The new system to be adopted to measure the poverty in India depends on the
measurement of……?
1. calorie food taken2. mobile usage3. holding of personal computer4. power usage 5.
consumer Goods
ANS. 5

5.Who among the following is called the ‘AgniPutri’?

1. Kalpana Chawla 2. sunitha Chawla 3. Thessy Thomas 4. Navaneetham Pillai
5. Nandini Sharma
ANS. 3

6. The recipient of Mahatma Gandhi Peace Award is……..?

1. Mujibar Rahaman 2. Abdul Kalam 3. Bhim sen joshi 4. Salman Rushdie5.
Angan san Suki
ANS. 5

7. Who among the following received Miss India World wide 2009 crown?
1. Priyanka Chopra 2. Gayatri Devi 3. Nikitasha Marha 4. Ektha Chowdary5.
Shilpa shetty
ANS. 3

8. The recipient of Man Booker prize-2009 is……..?

1. Salman Rushdie 2. Romilla Thaper 3. Amrthya Sen 4. suresh Tendulkar5.
Elisa Manroe
ANS. 5

9. The first ever Wizdon award received by a lady player is ………..?

1. mithila raj 2. serena Williams 3. koneru hampi 4. saina shewal 5.
Carley Taylor
ANS. 5
10. Bandra Worli bridge having the length of 5.6k.m is named after………?
1. indira Gandhi 2. rajiv Gandhi 3. p.v.narasimha rao 4. sivaji 5. bal
thakre
ANS. 2

11. Pradhan mantri Adarsa grama yojana provides the integrated development where the
50 % of people belongs to?
1. S.C 2. S.T 3. OBC 4. O.C 5. PHC
ANS. 1
12. Jatiya Mahila saksharatha mission aims to reduce the literacy among the woman
by…….% as per 2009-10 budget?
1. 10 2. 60 3. 15 4. 25 5. 50
ANS. 5
13. According to Rail budget 2009-2010, Kanchan para-Harishahar railway complex
produces…….?
1. railway bogies 2. sleeper chair 3. signals 4. electric engines 5.
bogies engines
ANS. 1

14. Which planet has the features of comet, found by the scientists in our galaxy?
1. kepler 2. cereus 3. Homea 4. Pluto 5. Nandini
ANS. 3

15. Of all the following which one is correctly matched?

1. Hot money—drain of money from the country of lower interest to higher rate of
interest
2. cheap money- when the C.R.R. is reduces the avail of money become more at less rate
of interest
3. Fiat money- the money minted by the government and has recognition
4. Call money- A bank take money from another bank for 14 days to meet urgent needs.
5. All of above
ANS. 5

16.the only batallion (88) of woman of……………is exiting in the world?

1. Assam Rifiles-18352. N.C.C.-1948 3. Territorial Army- 1949 4. B.S.F.-1965
5. C.R.P.F-1939
ANS. 5
17. 70 k.m range surface to air missile manufactured with technology of Isreal is………?
1. Trishul 2. Pithchora 3. prudvi 4. tejas 5. astra
ANS. 2

18. On jan 29-31, ;where the National Oil seeds summit was held?
1. delhi 2. mumbai 3. chennai 4. banglore 5. Hyderabad
ANS. 5

19. Credit khajana is the new scheme of …to provide the further loan of home loan, if
there is no default payments?
1. HDFC 2. SBH3. SBI 4. AXIS 3. CORPORATION BANK
ANS. 3

20. Of the following statements which one is wrong relating to Rail Budget 2009-2010?
1. Yuva A.C train for the journey of E.B.C unemployed youth
2. Ijjath is the new scheme allowing to get monthly pass of Rs. 25, for working force in
the un-organised sector
3. Maa-Mathi-Manush to provide the ticket service in postofffices 4. Mushkil Assan to
give tickets in mobile vans
5. All of the above
ANS. 5
21. Of all the following statements which one is correct relating to Financial Budegt
2009-2010?
1. the daily wage increased from Rs. 80 to Rs. 100 for the N.R.E.G.P benificiares
2. to bring 50% of village woman under the coverage of DWACRA ( OR) SHG
3. One post- One pension for the 12 lakh ex-servicemen
4. All B.P.L families get the coverage of insureance from Rashtriya Swastya Bhima
Yojana 5. All of above
ANS. 5

22. Father of Al Bombs test fired by …on sep 11, 2007, deemed to be the biggest non-
nuclear bombs in the world?
1. Russia 2. U.S.A 3. France 4. Italy 5. Australia
ANS. 1
23. Find the wrongly matched one relating to the new states demand in India?
1. Sourastra- Maharastra 2. Andhra Pradesh- Telangana 3. Kurg- Karnataka
4. Bundelkhand- U.P & M.P 5. Bhojpur- U.P,
Bihar, Chattisgarh
ANS. 1
24. Integrated Naval Development In Rural Areas And Model Muncipal Areas
( INDIRAMMA) is the scheme of..?
1. Bihar 2. Maharstra 3. Tamilnadu 4. Andhra Pradesh 5. Punjab
ANS. 4

25. The first Asian Rubber dam is constructed on the river ………………… in the state
of…………..?
 1. Gomathi – Uttar pradesh 2. Kaveri- Tamilnadu 3. Narmada-M.P
4. Satlaj- Punjab 5. Jhamjavathi- Andhra
Pradesh
ANS. 5

TEST X
1. Which programme started by the central government to keep the consumer awareness recently?
1. grahak sraddha suno 2. suvidha sradhha suchan3. Jago grahak jago 4. suno grahak suno 5.none
ANS. 3

2. Nag is the missile launched from ………………to …………..?

1. air air 2. air surface 3. water water 4. surface surface 5. air surface
ANS. 4

3. The biggest Air show ‘AERO INDIA- 2009 between feb 11-15 2009 held in…….?
1. Hyderabad 2. pune3. kanpur 4. Chennai 5. Bangaluru
ANS. 5

4. The 153 member in WTO is…?

1. Vatican 2. san marino 3. Taiwan 4. Singapore 5. Capavardhe
ANS. 5
5. International Translationary Research (ITR) is being established at?
1. Mumbai 2. pune3. kanpur 4. Hyderabad 5. Bangaluru
ANS. 4
6. The navy day is celebrated on Dec 4th in India to memories the victory over…….port?
1. Islamabad 2. Dhaka 3. Alexandria 4. Rome 5. Karachi
ANS. 5

7. India registers ………..rank in the Aids cases?

1. 1 2. 2 3.5 4. 3 5. 10
ANS. 4

8. Which police constable held the Mumbai terrorist main accused Kasab, though he is firing towards
him?
1. Vijay karkare 2. Ahluwalia monte 3. Tukaram Ombley`4. Ampte 5. Madhu vallia
ANS. 3

9. India establishes 500 MW thermal plant in Srilanka in ……….?

1. Colombo 2. Male 3. Jafna 4. Trinkomali 5. Andrews Mathur
ANS. 4

10.Polavaram benefits the states of………….?

1) Andhra Pradesh, Orissa, Chattisgarh 2) Orissa, Tamilnadu, Maharastra 3) Andhra Pradesh,
Orissa, Tamilnadu 4) Jammu & Kashmir 5) Tamilnadu, Orissa, Maharastra
ANS. 1

11. Tropex is the joint army, navy and air force exercise of India held at Madhavapur beach in the state
of ……?
1. Andhra Pradesh 2. Tamilnadu 3. Orissa 4.Karnataka 5. Gujarat
ANS. 5

12. Four C.F.L lamps are provided to each person under the Atal Bijali Bachat Yojana. This is the
scheme of …?
1. Himachal Pradesh 2. Orissa 3. Maharstra 4. Tamilnadu 5. Maharastra
ANS. 1

13. The biggest multi-specialty private hospital was established at ……….by name Kokilaben
Dhirubai Ambani Hospital?
1. Kolkatta 2. Jaipur 3. Pune 4. Hyderabad 5. Mumbai
ANS. 5

14. The only small nuclear power is established at………to use the local uranium mines?
1. Kerala 2. Maharastra 3. Kerala 4. Tamilnadu 5. Meghalaya
ANS. 5

15.Gay marriages are not allowed under sec………… of I.P.C, though the high court of Delhi
highcourt said it was against to the human and constitutional rights?
1. 302 2. 377 3. 498 4. 34 5. 100
ANS. 2

16. Samarupa and Gaima are the names of……….?

1. cloning sheep 2. cloning camel 3. cloning cheetah 4. cloning calf 5. cloning cat
ANS. 4

17. Asian Center For Human Rights estimated that there are more custodial deaths in the state
of……..?
1. Maharastra 2. Uttarpradesh 3. Andhra Pradesh 4. West Bengal 5. Bihar
ANS. 1

18. Which nation among the following one saved by moving the one hour day time to save the labour
apart from Pakistan in south Asia?
1. Bhutan 2. Nepal 3. Bangladesh 4. India 5. India
ANS. 3
19. The highest number of grand slams ( 15) won by ……….. Who over ride the record of Pete
samprass?
1. Rafel Nadal2. Serena Williams 3. Liander Peas4. Martina Navrathilova 5. Rojer Fedarar
ANS. 5
20. We are the world’ is the music album, really planned to be made by Michel Jockson and
…………?
1. Bhimsen Joshi 2. Lata Mangeshkar 3. A.R.Rahaman4. Ustad Bismalla Khan 5. chowrasia
ANS. 3

21. The 9th Pravasi Bharathiya Sadassu was held at………?

1. Bangalore 2. kanpur 3. Newdelhi 4. Mumbai 5. Chennai
ANS. 5

22. Rajiv Gandhi Manava seva Award received by…………………?

1. Anna Hazare 2. Aravinda Adiga 3. Ajaria Korabandi 4. Gundappa viswanath 5.
Manek singh Ahluwalia
ANS. 3

23. Which commercial gaint received the prestigious Golden Peacock Award—2009?
1. HDFC 2. AXN 3. TATA 4. RELIANCE5. KHTHAN
ANS. 3

24. Which candidate from Tamilnadu took the gunnies record for the contesting for 100 times
recently?
1. Subramanyam swamy 2. jayalalitha 3. K.Padmarajan 4. Pandian 5. Karunanidhi
ANS. 3

25………..replaced sister Nirmala for the post of Superior General of Mother Theressa missionaries of
Charities?
1. devikasena 2. alfonsa 3. Prema 4. theressa 5. Karunamayi
ANS. 3

PAPER 4
1. Which bank signed with World Bank for implementation of chiller energy efficiency project?
(CEEP) in India?
1. SBI 2. AXIS 3. IDBI 4. ICICI 5. ANDHRA BANK
2. National Award for excellence in Khadi and village industries received by ………bank?
1. Corporation 2. Allahabad 3. SBH 4.CBI 5. Andhra Bank
3. Which Bank received 5 national awards from the ministry of Micro Small Medium Enterprises?
1. SBI 2. Bank of India 3. PNB 4. Vijya bank 5. Syndicate Bank
4. On 3rd Sep 2009, which bank announced the large scale reduction over the interests of loans?
taken by farmers in the drought hit areas?
1. Corporation 2. Allahabad 3. SBH 4.CBI 5. SBI
5. Recently which bank got license to work in Dubai, stunningly though protest from the Gulf banks?
1. Corporation 2. HDFC 3. SBI 4.CBI 5. Andhra Bank
6. The central Government decides that India Infrastructure Finance Company Limited would
refinance...percent of commereical bank loans for public-private partnership projects in critical
areas in the next 15-18 months from sep 2009?
1. 50 2. 40 3. 70 4. 20 5. 60
7. On 29 Aug 2009, the Reserve bank of India transfers surplus funds to the tune of Rs…….
to the Union Government during 2008-2009?
1. 10,000 cr 2. 50,000 cr 3. 35,000 cr 4. 11,000 cr 5. 25,009 cr
8. To implement …………….., The Bill and Melinda Gates foundation signs a memorandum of
Cooperation with the National AIDS Control Organization ( NACO ). Both take initiative
to check the spread of HIV / AIDS in India. They signed on 24-08-2009
1. DISHA 2. ASHA 3. KAREGA 4.PEHECHAN 5. AVAHAN
9. Indian prime minister Man Mohan Singh inaugurated the new campus of Indian Institute of Space
Science and Technology ( IIST) at Valiamala, …………………?
1. New Delhi 2. Mumbai 3. kolkatta 4. Bangalore 5. Hyderabad
10. PEHACHAN cards are issued for the beneficiaries of ………., the first of its kind in India,
issued in Bangalore by the union minister of Labour Mallikarjun Karge.
1. ESI 2. NREGP 3. AIDS 4. INCOME TAX 5. EXPORTERS
11.Which university established a visiting professor ship in the memory of Sanjay Lall—regarded
As member of the second generation of globally renowned Indian economists?
1. Harvard 2. Cambridge 3. Oxford 4. JNU 5. OU
12. Which High court in India ordered to allow only 4 stroke auto rickshaws with LPG on roads?
1. Andhra Pradesh 2. Madras 3. Kolkatta 4. Delhi 5. Kerala
13.Bharat Refractors was amalgamated with …………..?
1. BHEL 2. SAIL 3. ONGC 4. AIRTEL 5. Bharathi Life Insurance
14. UIDAI selected ……..state to introduce the cards on a pilot basis on Aug 29,2009?
1.karnataka 2. Andhra Pradesh 3. Goa 4. Assam 5. Orissa
15. Mukyamantri shishu shakthi and Mukayamantri mehtari shakti is the schemes of ……..
to provide the nutritious food to women and children?
1. Madhya Pradesh 2. Uttar Pradesh 3. Chattisgarh 4. Tamilnadu 5. Sikkim
16. Oscar winner and Globe Award winner and Grammy nominee of 2010 win the Grass Root
Grammy for his…………?
1. Mucchhimandu 2. Kanchivaram 3. Malanadu 4. kedra pashuy 5. Varaluru
17. The Central Government declared new liberalized policy in Foreign Direct Investment ( FDI)
Norms for micro and small enterprises ( MSEs) replacing the current 24 percent ceiling.
Which among the following is correct statements regarding this one?
1. increased the limit to 90 % 2. increased the limit to 80 % 3.lifted the ceiling
4. increased the limit to 70% 5. decreased the limit to 15 %
18. Best Law Teacher Award conferred on ………………….by Bar Association of India?
1. Noraman 2. Madhav menon 3. subhash Kasyap 4. J.N. Pandey 5. D.D Basu
19. Asia’s first centre for higher education for the physically and visually challenged
Persons –the Shakuntala Mishra Rehabailitaion University-is established in ?
1. Lucknow 2. Chennai 3. jaipur 4. Hyderabad 5. New Delhi
20. Delivery Monitoring Unit ( DMU) is established by PMO headed by …….?
1. Prudeveeraj Chowhan 2. A.K. Acharya 3.D.Subba rao 4. T.K.A. Nair
21. The French Anthropologist, the father of Anthropology died on 5 Nov 2009. He is .?
1.Robert Brass Fruit 2. John Marshall 3. Neelakantam 4. Mary hondorous 5. Claude Leivs struass
22. International Revival Fund to relive the banks dipping in crisis in needed. This call given by….
on 7 Nov 2009?
1. U.S.A 2. India 3. Japan 4. U.K 5. U.N.O
23.On 25 Oct 2009 India send the message to WHO that ………..disease is no more in India. It is..?
1. Swine Flu 2. Cholera 3. T.B 4. AIDS 5. Bird Flu
24. It is estimated that there is one death in India per minute due to …………?
1. AIDS 2. H1N1 3. Heart Attack 4. Pneumonia 5. Cholera
25. Vigilance Awareness Week is observed between……….Nov……. & ……?
1. 7 , 13 2. 3 , 9 3. 4, 10 4. 7, 13 5. 9 , 15
26. On Nov 5, 2009 the government of India declared new support price for wheat. It is…. Rs. ?
1. 1000 2. 990 3. 1050 4. 1600 5. 1100
27. Government of India declared that the average Higher Education in the developed country is
23 % . In India it is only……..percentage?
1. 06 2. 12.4 3. 14.5 4. 22 5. 21
28. National Public Transport Help line started on 8 Nov 2009 by the central government. It is..
1. 100 2. 139 3. 155131 4. 155220 5. 1345
29. client doctor ration in India is 1500: 1. But the international standards tell the ratio should be
least not more than ……………..according to prathiba Patil inaugurating the 37 AIIMS conference
at New Delhi on 14 Nov 2009?
1. 150: 1 2. 450 :1 3. 250:1 4. 1000:1 5. 750:1
30. Which famous Hindi Film lyricist was nominated to Rajya Sabha on 17 Nov 2009?
1. Manna Dey 2. Kadar Khan 3. Javed Akthar 4. Shabna Azmi 5. Lata Mageshkar
31. Forecast the scams like Satyam the government of India want to start ………….with 15 caution
Lines. It warns the state and central government and agencies. The decision taken on 5 Nov 2009?
1. EWS 2. FWS 3. TPS 4. ZPS 5. None
32. Next to Maruti and Bajaj which company in India wants to infuse the new car of undisclosed price
1. Honda 2. Kawasaki 3. BSA 4. Chevrolet 5. Fiat
33. On 5 Nov 2009 the government of India decided to disinvest the PSU’S. The correct statements are
a) 10 % stake of total holding must be disinvested from PSU”S , given to public in the form of
I.P.O.
b) Peoples participation is necessary to have more transparency, the other aim of disinvestment
c) the amount received from the disinvestment used to spend on social sector
d) the government stake in NTPC is 89.5 %. Now it wants to disinvest up to 5 %.

e) In Satlej Jal Vidyuth Nigam Limited ( SJVNL) , the disinvestment up to the stake of 10 %.
central government wants to loose 10 % stake reduce from 75 % to 65%. Where as the
Himachel Government retains is 25 % stake.
1. a b e 2. b c d 3. d e 4. a b c d e 5. None
34. ………became the first lady to head Associated Chambers of Commerce and Industry of India
1. Sikha Sarma 2. Swathi Piramal 3. usha throat 4. Chanda Kocchar 5. Nirupama Rao
35. Universal Smile Award conferred on ………….who made to free cleft lip state.
1. Tarun Gagoi 2. Naveen patnaik 3. Mayawathi 4. K. Rosaiha 5. Karunanidhi
36. American Courage award conferred on …………..who protects the human rights in India?
1. Mallika DAttha2. Mallika Sherawat 3. Mallika Arjun 4. Mallika Donthem 5. None
37. Unmasked; the final years of Michel Jackson is the book written by…….who mentioned that
Michel is Homo?. He is from Canada the investigative Journalist.
 1. Ian HolePerim 2. Morsey monto 3. Avian terms4. Rustak than 5. Mary timber
38. on which day there is appearance of longest solar eclipse, not surpassed until June 2132. its
duration
1. 22 h 32 m 2. 6 h 39 m 3. 36 h 12 m 4. 2 m 59 s 5. 6 m 39 s
39. Which state decided t set up Arsenic removal plants in all the districts to enable it self to
Provide arsenic free drinking water to all the people by 2010-2011. the state is………?
1. Andhra Pradesh2. Bihar 3. West Bengal 4. Goa 5. Tamil Nadu
40. Which state issued the E-sakthi cards to stream line the funds to be spend on MGREGP ?
1. Andhra Pradesh2. Kerala 3. Bihar 4. Goa 5. Tamil Nadu
41. Ganandeep project is the brain child of .university to continue the studies even for army personal?
1. JNU 2. IGNOU 3. JNTU 4. DHU 5. Osmania University
42. .received the ISRO merit award -2008 who is the director of ISRO Advanced Data Research?
1. Tessy Thomos 2. abdul Kalam3. Geetha Vardan 4. Madhavan nair 5. Kasturi Rangan
43. ..town is closed due to outbreak of Pneumonic Plague in China
1. XinXhu2. Beijing 3. Shangai 4. Monzou 5. Ziketen
44. .of AMC’s won best drama for the second year at the 2009 Emmy Awards ?
1. misley 2. I am hero 3. Michel Jackson 4. sure it is 5, Mad men
45. Golden Jubilee Celebrations of DD celebrated on ………………...sep , 2009 ?
1. 25 2. 15 3. 5 4. 1 5. 30
46. ……cr of rupees sanctioned by sarad pawar, the agriculture minister to farmers on use of
Diesel by farmers for the agriculture use?
1. 750 2. 1500 3. 1000 4. 50 5. 100
47…......... to attract FDI’S Central and state governments started the fund of…………recently?
1. Come On Invest 2. Invest For benefit 3. India and Invest 4. India and Goal 5. Invest –India
48. Shubha Gruha Pari Yojana is the scheme introduced by ……to construct the Budget houses?
1. Reliance 2. Suvarna Bhumi 3. RK 4. TATA 5. Birla Group
49. Camov helicopters buy from………………as India put an order on 19 Aug 2009?
1. U.S.A 2. Japan 3. Russia 4. England 5. France
50. ……..airline company in India unveiled the 36 months Turn Around Plan to fill the gap of losses
due to strike and recession?
1. Air India 2. King Fisher 3. Deccan 4. East West Air Lines 5. Cathay pacific

PAPER 4 KEY

1. 3 2.4 3.3 4.5 5.3 6.5 7.5 8.5 9.4 10.1

11.3 12.3 13.2 14.1 15.3 16.5 17.5 18.2 19.1 20.4

21.5 22.4 23.5 24.4 25.2 26.5 27.2 28.4 29.3 30.3
 31.1 32.4 33.5 34.2 35.1 36.1 37.1 38.5 39.3 40.3

41.2 42.3 43.5 44.5 45.2 46.3 47.5 48.3 49.3 50.1

PAPER 5

1.On Dec 3, 2009 India declared that it will cut the gas emissions by ………percentage
of base year 2005 by 2020?
1. 20-30 2. 25-30 3. 5-10 4. 1-5 5. 20-25
2. On Dec 3, 2009 whose name is nominated from the Grammy Award 2010. Jakir Hussain
Win the Grammy 2009 for his Global Drum Project in 2009?
1. Hariprasad Chorurasia 2. Jakir Hussain 3. Ilayraja 4. Keera vani 5. A.R.Ramahan
3. IIFI awards were presented in the closing session at Panaji. The best film no pueodo vivir
Sin Ti received the golden peacock. It is the film of ?
1. India 2. Romania 3. hungary 4. Taiwan 5. japan
4. Which bank agreed to finance Jharkand to the tune of 200 million for the development
of roads the naxal effected states?
1. IBRD 2. IMF 3. ADB 4. IFC 5. IDA
5. The country’s cabinet ministers were killed in the bomb blast in the lawlessness prevail
in this African horn state. It is……..?
1. South Africa 2. Chatd 3. Zimbwabe 4. Zambia 5. Somalia
6. Clan Tchonolgy trade mission lead by ……………. t visit India to supply
geen oriented technologies?
1. U.S.A 2. Japan 3. Canada 4. Iran 5. England
7. Unitech and the Telenor of ………………..introduced the service provider Uninor GSM
in seven circles.
1. Norway 2. Canada 3. England 4. finland 5. japan
8. Which famous company having base in U.S.A introduce the crop soulutions and micro
irrigation products?
1. Mont Bloc 2. EKA 3. john dorre 4. maxitian 5. moarse
9.On Dec 2, 2009 the world bank had taken the decision to give huge loan to India.
Which among the following statements is correct regarding the loans to India by
the same?
a) World bank lend the average loan assistance of $ 2.3 billion in the last
four fiscal years
b) This year the world bank intends to rise the loan up to the tune of $7
billion
c) It already declared $ 4.3 billoion to India in sep in the last year
 d) In this year amount the amount of $2.96 billion loan may be used to
convert or expand the national highways
e) The director of IBRD is Robert Zollick
f) The head quarters of IBRD is at newyork
1. a b c e f 2. b c d e 3. c d e f g 4. a b e f 5. a b c d e
10…..released 3 D note book on Dec 2 2009 at newdelhi starting the range of 43,500 to 60,000?
1. Micro soft 2. IBM 3. ACER 4. ACCENTURE 5. MAX
11.Which Supremecourt Judge retired on Oct 14, 2009 who had given the landmark judgements like
ordering the v.i.p’s to vacate the official bunglows at newdelhi, declaring dissoulution of bihar
assembly as unconstitutional, stay the setusamudram project , calling Bandh called by Tamilnadu
government as unconstitutional e.t.c?
1. Chandra chud 2. Gargeya 3. Agarwal 4. Markendey Katju 5. G.N.Ray
12 A court replaced the long standing of House of Lords in England , which had given the land mark
Judgements. It is………………?
1. Supreme Court 2. Queen’s court 3. Marshal Court 4. Angel court 5.None
13.Biju Patnaik Award for wild Life conservation rececived by Oarnithologist Udaya Narayan and
environmentalist………………….?
1. Sunder Lal Bahuguna 2. Narayan Patro 3. Megha Patel 4. Markendya 5. None
14 South Asia Foundation organized the festival by name Peace Festival 2009 at…….?
1. New delhi 2. Pune 3. Hyderabad 4. Amritsar 5. Goa
15.The Genetic Engineeing Approval Committee ( GEAC), country’s Bio-Tech regulator on Oct,14
2009 approved the commercial cultivation of genetically modified ( GM) …………..?
1. mango 2. apple 3. Potato 4. Carrot 5. Brinjal
th
16. In 5 Asian Grand Prix archery Tarun Deep Rai team performed well. This event was held at…?
1. Bejing 2. Jakartha 3. New Delhi 4. Dhaka 5. Colombo
17.Who clinched the ONGC $ 15,000 ITF championship held at Kolkatta?/
1.Limba Ram 2. Rupesh Roy 3. Yuki bambri 4. Mastana Prem 5. None
18.Who designed the Mahatma $ 1 stamp, released by UN assembly president Ali Abdusalam Treki
on the eve of non-voilence day celebrated on October 2, 2009?
1. M.F.Hussain 2. Master Ram 3. Ferdie Pacheco 4. Sunitha syam 5.None
19.………………cyclone effected west Bengal recently?
1. Gustav 2. Nargis 3. Aila 4. Garuda 5. Kaimukh
20.A country is agreed to set up a working group with India on climatic change, which held the
annual Meetings reitetrating the United Nations Frame Work convention on Climate Change?
It is?
1. china 2. U.S.A 3. Brazil 4. Swedan 5. Russia
21. On 20 October 2009, CIC resigned and took up his new assignment as RTI watch dog in Jammu
and Kashmir. He is……….?
1. Gopala Swamy 2. Suresh Tendulkar 3.Suresh Methatha 4. Madhavan Nair
5. Wajhat Habibulla
22. Jagannatha Pahadia, the governer of Haryana administred Bhupendra Singh Hooda as the
Chief minister for ………….term?
1. Third 2. Fourth 3. Sixth 4. First 5. Second
23. Standing conference of Public Enterprises (SCOPE) award conferred on………..?
1. BHEL 2.NTPC 3.HCL 4.RIL 5.ONGE
24. International Press Institute ( IPI) award was conferred on………….of the week Magzine?
 1. Kuldeep Nair 2. Kushwanth singh 3. Priya Mensez 4. Bidisha Goshal 5. None
25. “A conversation between Gandhi and Tagore” is the familiar drama written by…?
1. M.K.Raina 2. Mandur Shedan 3. Adduri 4. Vidyalatha 5.None
26.GEAC lead by……………?
1. Mantek Singh Ahluwalia 2. Deepak Pental3. Manmohan Singh4. Vijay c Kelkar 5. None
27. 5 sites are reconised for setting up Light Water Reactor ( LWR). a) Jaitapur( Maharstra)
Collaberated by France b) Kudamkalam ( Tamilnadu) Collaberated by Russia c) Haripur
( west Bengal) Collaberated by Russia d) Chayya mitthivriddhi ( Gujarath ) Collaberated by
U.S.A. Another one is Kovvada in Andhra Pradesh Collaberated by ………………..?
1. Mangolia 2. England 3. Japan 4.Italy 5. U.S.A

28.On October 22, 2009 the union cabinet approved the proposal for a constitutional amendment Bill
for enhancement of reservation for woman in Urban Local Bodies up to………%, from the present
1/3 of the total seats contested?
1. 45 2. 37 3. 65 4. 75 5.50
29.On October 29,209 the union Food ministry intended to give an additional bonus of Rs. ….
Over the MSP, becoming Rs. 1000 for ordinary rice and Rs.1030 for Super fine rice?
1. 80 2.100 3.145 4.200 5.50
30.How much assistance was given to Andhra Pradesh , to carry out the relief and rehabilitation
Measures after flood hit the state. State sought Rs. 6,000 Cr
1. 200 Cr 2. 2000 Cr 3. 1000 Cr 4. 5000 Cr 5. 6,000 Cr
31.Orissa would become ODISHA and ORIYA become……………?
1. ODIYA 2. ODI 3. ODHIYA 4. ODISSY 5. ODIA
32.Rajasthan Highcourt stayed the bill moved by Rajasthan government to give …
…% reservations to Gujjars and -------------% to EBC’s held that it exceeds the 50% quota as
restricted by Supreme Court in the Indira Sahani Case?
1. 5,25 2.30,15 3.5,14 4. 5,5 5. 12,15
33.The following statement are related to HDI.HDI ranks released by UNDP human development
Report. Which among the following is correct relating to it?
1. HDI developed jointly by Mahabud Ul Haq of Pakistan and Amartya Sen of India
2. Education , Life Expectency and income are measuered as 3 key factors.
3. HDI ranks are divided in to very high developed country, highdevelped country,Medium
Developed country, low developed country.
4. The present data is released on the data of 2007
5. All of above
34.Of the following statements which is correct relating the UNDP report released recently?
1. India’s life Expectancy 63.4 years 2. Japan’s life Expectancy is 82.74 years
3. India’s Adult Literacy is 66% 4. Georgia’s Literacy is 100%
5. All of Above
35.Of the following statements which one is correct relating to UNDP report depend on HDI?
1. In Very High Developed Countries, Norway, Australia, Iceland occupied 1,2,3 ranks
2. In High Developed Countries, Argentina, Mexico, Saudi occupied 49,53,59 ranks
3. In Medium Developed Countries, Thailand, China, Sri Lanka
and India got 87,92,102,134 ranks
4. In Low Developed Countries, Sierra Lone , Afghanistan and Niger got 180,181,182 ranks
36.Chicago Marathon clinched by ……….in men’s event and by…………..in women’s event?
 1. Dortisi Mannan of China and Malovan Paul of Mexico
2. Abderrahim Goumi of Monacco and Irina Mikitenko of Germany
3. Sammy Wanjauru of Kenya and Liliya Shobukova Russia
4. Marendez dantheru of Isreal and Marena Prathuva of Russia
5. None
37.Who clinched the Life Achivement Award in 11th edition of Osian’s Cinfen Film Festival held
at New Delhi?
1. A.R.Rahaman 2. Prakash Raj 3. Gulzar 4. Amitab Bachan 5. Dilip Kumar
38.India and …………..made a military cooperation for the period between 2011-2020 recently?
1. 2010-2020 2. 2009-2019 3. 2010-2020 4. 2011-2020 5. None
39.On October 20,2009 the government of India launched the National Skill Development
Corporation ( NSDC) to skill 30% of the overall target of 500 million of people by …..?
1. 2050 2. 2025 3. 20405 4. 2011 5. 2022
40.India is the winner of ONGC Nehru cup title defeating ………..?
1. Iran 2. Iraq 3. Indonesia 4. Syria 5. Argentina
41.Which Gulf country made mandatory to raise government flag and play the national anthem
In all schools and hospitals?
1. Kuwait 2. Iraq 3. UAE 4. Iran 5. Saudi
42. Which Chinese company got the permission to manufactre the vaccaine for H1N1.
1. mosovac 2. novortis 3. sonovac 4. malphanic 5. chelsitmac
43.Rs. 5.47 lakhs fectched in the auction for selling Buddha statue given by Gandhi to his
Irish friend. He is
1. Vijay Mallya 2. Anup Chakravarthy3. Emma harker 4. Malsisty monte 5. none
44. Which state relesed the prisoners in U.S.A, to limit the inmates to 16,000. This state governor
is Arnold Schwarzenegger, the Hollywood hero.
1. Lousiana 2. newyork 3. California 4. newjersy 5. losangles
45. $ 13 billion worth of gold released by IMF for sales . India and ………had shown to interest.
It sold 403.3 tonnes of Gold, one eighth of the total load of yellow metal had by it.
1. china 2. arentina 3. brazil 4. japan 5. u.s.a
46. Which country made an apopgy to Nigeria for the allowing of sale of fake drugs labeled as
made in India?
1. England 2. Russia 3. China 4. Japan 5. Norway
47.Which nuclear submariane given to India on lease basis to India by Russia?
1. Akula 2. Apsara 3. Nerpa 4. Kudumkallam 5. kalpakam
48. ATM manufacturer Diebold inc. got a tender to supply of 1750 machines from…….?
1. State Bank Of India2. OBC 3. ICICI 4. AXIS 5. BOB
49. ……..regains Ashes on 23 aug 2009?
1. Australia 2. U.S.A 3. England 4. Newzland 5. India
50……marathon runner Liza Hunter Galvan is banned for two years after testing positive for the
Blood boosting drug erythropoietin ( EPO ) ?
1. Australia 2. U.S.A 3. New Zealand 4. U.K 5. India

PAPER 5 KEY
 1.5 2.5 3.4 4.3 5.5 6.3 7.1 8.3 9.5 10.3

11.3 12.1 13.2 14.4 15.5 16.4 17.3 18.3 19.3 20.1

21.5 22.5 23.4 24.4 25.1 26.2 27.5 28.5 29.5 30.3

31.5 32.3 33.5 34.5 35.5 36.3 37.3 38.4 39.5 40.4

41.3 42.3 43.3 44.3 45.1 46.3 47.3 48.1 49.3 50.3

PAPER 6
1. Who dircted Kanchivaram, won the Best Feature Film and Best Actor at the 55th National
Film awards for 2007 recently?
1. Adduri Gopalakrishnan 2. MrunalSen 3. Priyadarsan 4. Ramgopal verma 5. None
2. National Mission for Female Literacy, to make 60 million women functionally literate and 70
million people as literate started on September 8, 2009 on the eve of International Literacy
Day, by …………?
1. 2020 2. 2017 3. 2030 4. 2012 5. 2018
3. Chen Shubian is the former president of ………..who was imposed with life imprisonment
the first top brass punished in this way.
1. China 2. U.S.A 3. Taiwan 4.Sri Lanka 5.Hong Kong
4. Obama appointed …………..as the head of new office created i.e, Office of Social
innovation and Civic participation?
1. Arjun Majumdar 2. Sanjay guptha 3. preeti Bansal4. Marshe Pande 5. Sonal Sha
5. Pipe line of IOC in east India from ………….to Baruni is laid down, though being
threatned by the Maoist to ablaze it.
1.Baruni 2. Baruhat 3. Bandra 4. Baisaki 5. Bori Bunder
6. In KG basin Reliance struck the gas at Gadimoga near Kakinada from Andhra Pradesh,
and ONGC also struck the gas in the same gas basin at………….near Amalapuram?
1. Krishna Puram 2. Racharlapadu 3. Agaraharam 4. Ranga puram 5. Lepakshi
7. World Economic Forums’s rating of ‘Global Competitiveness Report’ 2009 released and in it
India secured 49th rank. Its previous rank is………..?
1. 12 2. 134 3. 48 4. 1 5.2
8. Del Potro Juan Martin up set the highest 15 grand slam winner Roger Federar of Swiss in the
U.S.Open held on 14, Sep 2009. He belongs to …………?
 1. India 2. U.S.A 3. Argentina 4. Russia 5. England
9. Kim Clijsters of……..win woman title of U.S open 2009?
1. Belgium 2. U.K 3. Russia 4. Australlia 5. Newzland
10. Mens Dobles win by Lukas Doulhy of ……..and Leander peas of India?
1. U.S 2. Argentina 3. Czech Republic 4. Russia 5. Australia

11. Women Doubles win by serena and venus William sisters. They won this title over
Alisa Kelbanova and Eketerino Makorava of ……..?
1. Argentina 2. U.S 3. Russia 4. U.K 5. Spain

12. Bagru Kalan, near……………is the place where Sonia Gandhi inaugurated 1,054 K.M
Mundra-Delhi Pipe Line. ?
1. Jodhpur 2. Jaipur 3. Pokran 4. Nagur 5. Jaisalmeer
13. First Gay head of Government, First lady prime minister of Ireland, the social democrat…?
1. Johana Sigurdardottir 2.MarZieh Vajid Dastjerdi 3.Irina Bokova
4.Kethena tontevc 5. None
14. which government banned the use of plastic in Four and Five Star hotels as per the order of
the High court?
1. West Bengal 2. Tamilnadu 3. Delhi 4. Punjab 5. Kerala
15. Economic Survey submitted on 2 July 2009, has stipulated 3D vision for sweeping
financial sector reforms. 3D denotes?
a. Decontrol b. Disinvestment c. Deliberation d. Delink e. Development
f. Deregulation g. Decentralise h. Denatinolise i. Discussion j. Derliction
1. a, b, d 2. b,g,h 3. c, e, j 4. d, f, h 5. a, b, i
16. China began the construction of its space launch centre in …on the coast of the island
province of Hainan, scheduled to be completed by 2013.
1. Shangai 2. Bejing 3. Wenchang 4. Tawang 5. XhunXhun
17. 2009 Nelson Mandela Award recvied by …..for his efforet for promoting minority rights,
who is a senior congress leader in India?
1. Arjun Singh2. Oscar Fernandes 3. Anand Sarma 4. Gulam Nabi Azad5. Shila Dekshit
18. Venice Film Festival Best Picture is………..?
1. Tonga 2. Lebanon 3. Slum Dog Millionere 4. Kanhevaram 5. Smile Pinky
19. IFC offered $ 15 million for providing ….to 30 lakh people in the villages of Madhya
pradesh, Andhra Pradesh, Uttara Pradesh, Maharastra, Chhatisgarh, Gujrath.
1. Free Housing 2. Free education 3. free drainage facilty 4. clean drinking water 5. None
20. According to UNESCO’s estimates, the climate change in Indiabring the following damages
due to Global warming?
a) sudden rainfall in Rajasthan b) No big help of South West monsoon in time
c) If the temeperature increases from 2.5 c to 4.9 c, the import of paddy decreaseds by 42%
d) the import of wheat decreases by 55 % e) G.D.P. reduces by 1.8 -3.4 %
1. a b c d e 2. a b d e 3. b d 4. a c d 5. b c d e
21. How much percentage of G.D.P must be spend to reduce the Green House gases threat?
1. 3 % 2. 14% 3. 1% 4. 9 % 5. 10 %
22. Of the following pairs which one is correctly matched?
1. Jagannath Pahadia-Governor of Haryana 2. Margeret Alwa- Governor of UttaraKhand
3. Syed Sibety Razi- Assam 4. Iqbal Singh-- Governor of Puducchery
 5. All of above
23. First woman to be appointed as Additional Soliciter General of India?
1. Indir Jaisingh b) Gopal Subramanium3. Navaneetham Pillai 4. Meira Kumar 5.Usha throat
24. Who is appointed as F.A.O policy consultant who is an Indian. He is …….
1. Y.V.Reddy 2. Suresh thendulkar 3. Prof.Acharya 4. Sonal Sha 5. Mashelkar
25. Vikas Swarup who is the authour of Q & A, which was screened as Slum Dog Millionere
Appointed as Consulate Genral of India recently in………
1. U.S.A 2. Japan 3. Thailand 4. China 5. Hong Kong
26. Law passed by ……….heeding to the pressure of Mulim groups that the wife can be denied
The food and sustenance if they refuse to obey their husband’s sexual demands?
1. Iran 2. Afganisthan 3. Saudi 4. Maleysia 5. Pakistan
27. British Oil explorer Cairn Energy, annundec to start crude oil production from its Mangla
Oil fields in ………., in Rajasthan.
1. Barhauth 2. Barmaer 3. Badaduri 4. baithan 5. buckinghalm
28. 2009 Rajlakshmi award received b;y ……..the environment activist. She is also the director
Of Centre of Science and Environment?
1. Manu sarma 2. Sunita Narain 3. Nanditha Das 4. Medha Patkar. 5. Kamla sen

29. The economic survey presented on July 2, 2009 suggested changes in fundamental
policy for merchandise trade sector. Which one of the following is not the part of strategy
to give boost to merchandise trade sector?
1. provide the stimulaus packages 2. reduce the custom and import duties
3. green signal to export promotion scheme 4. no harrasement of traders
5. increasing the excise duties
30. From 2010, the …….based Indian Naitonal Centre for surface currents of the Indian Ocean?
1. Hyderabad 2. Pune 3. Bengaluru 4. Kolkatta 5. Chennai
31. ………was appointed to link U.S administration with the Asian-American and pacific Islander
Communities and arts and entertainment groups. He was the Indian –American actor and also
Associate Director of the White House of Public Management of U.S.A
1. Kiran srilaxmi 2. Maha Mohopadyaya 3. Kalpen Suresh Modi
4. Nasiruddin Sha 5. Manjrekar mondi
32. Accelerated Programmme of Restoration and Regeneration initiated by the Union Environment
Forest Ministry on July 9, 2009. this programme aims to increase the …………
1. Forest cover 2. provide shelter to tribals 3. provide offices to offiecals in forest area
4. provide drinking water to tribals 5. All of the above
33. Global Vipasana pagaoda the largest stone dome in the world built without supporting pillars
Was inaguraated by Pratiba patil. It is at…….?
1. Kolkatta 2. Mumbai 3. Jaipur 4. Chennai 5. Hyderabad
34. 75th Ranji and 38th time, which team clinched this indigenous match held at Hyderabad on jan
16, 2009?
1. Uttar Pradesh 2. Mumbai 3. Andhra 4. Hyderabad 5. Jaipur
35. Peace Mission 2009 is………………….?
1. Joint military exercise of Russia and china
2. The peace mission launched by U.N.O to communicate the polices of Gandhi
3. To bring peace and unity among the people of Sri Lanka disserted by LTTE war
4. Initiated programme of Barack Obama to bring peace in Iraq
 5. All of Above
36. Which among the places got the eastern railway corridor, a new factory as announced in Railway
Budget?
1. Purulia 2. Patna 3. Kanchrparra 4. Tharwad 5. Chennai
37. Adra, the base in west Bengal will have………….., according to Railway budget?
1. PowerPlant 2. Railway bogies unit 3. Bunds unit 4. diesel engines unit 5. coaches
unit
38. To asses Aila, the Ministry of Water Resources send the committee headed by…….?
1. D.K.Tyagi 2. Liberhan 3. Raghavan 4. Veerappa Moliey 5. S.K.Das
39. Which prize is equal to be treated as the noble in Architecture in received by Peter Zumthor
the swiss architect?
1. Noble Laurte Signature 2. Abel Prize 3. Prizker prize 4. Jonathaman 5. Jefferson
40. CNN –IBN life time Acheivement award win by ………………film star for 2009?
1. Amitab 2. Shermil tagaore 3. Dilip Kumar 4. Dharmendra 5. Latha
mangeshkar
41. Ezhimala Naval Academy inaugurated by manmohan singh at ………in kerala?
1. Ernakulam 2. Kochi 3. Srirangam 4. Tiruvananthapuram 5. Kannur
42. Which company got the tender ot erect 120 MW power station at Belarus?
1. NTPC 2. IOC 3. BHEL 4.APGENCO 5. BHEL
43. Which bank provided the facility to file Income Tax returns recently?
1. Andhra Bank 2. Allahabad Bank 3. Corporation Bank 4. ICICI 5. Axis
44. Of the following statement which one is correct regarding host of International games?
a. Asian games 2010 held at Gangzou in Chinab.
b.Asian Games 2014 held at Incheon South Korea
c. Common wealth games held in Delhi in 2010
d. Common wealth games held in Glasgow, Scotland in 2014
e. FIFA cup held in 2010 in South Africa
f. FIFA cup held in 2014 in Brazil
g. Men World Hockey held in 2010 at new delhi
h. Men World Hockey held in 2010 at Minsk, the capital of Belarus.
1. a b c d 2. b c e 3. a d e f 4. d e f g 5. a b c d e f g h
45. India and….sgned an agreement with .for access t copper and diamond mines in India?
1. South Africa 2. Australia 3. Niger 4. Namibia 5. U.S.A
46. Which bank’s ATM colour is blue?
1. ING vysya 2. Axis 3. SBI 4. Bank of Baroda 5. ICICI
47. Which bank opened 1540 ATMs and 154 branches in India,a record in the banking history?
1. ICICI 2. AXIS 3.SBI 4. Corporation Bank 5. HSBC
48. Which bank intends to open its customer grivences centers in public palces from 2011/
1. BOB 2. ANDHRA BANK 3.SBI 4. Allahabad bank 5. HDFC
49. Which bank had an agreement with Mahendra and Mahendra to get the old tractors of
Farmers and give the new one. The difference amount is treated as?
1. Indian Bank 2. Bank Of India 3.SBI 4. KOTAK MAHENDRA 5. SBH
50. Which Bank was given the award of Clean ATM maintance award in 2009?
1. Standard Charted 2. ICICI 3. CITI 4. Indian Bank5. SBI
 PAPER 6 KEY

1. 3 2.4 3.3 4.5 5.1 6.4

7.3 8.4 9.1 10.3 11.3 12.2

13.1 14.3 15.5 16.3 17.2 18.2

19.4 20.1 21.3 22.5 23.1 24.3

25.2 26.2 27.2 28.2 29.5 30.1

31.3 32.1 33.2 34.2 35.1 36.3

37.1 38.5 39.3 40.3 41.5 42.5

43.3 44.5 45.4 46.3 47.3 48.3

49.3 50.3

PAPER 7
1. On October 2, 2009 India celebrated the 50th anniversary of introduction of Panchayath Raj
System. It was introduced in the district headquarters of Nagur in……………………?
1. Maharastra 2. Andhra Pradesh 3. Karnataka 4. Tamilnadu 5. Rajasthan
2. With which country India had an agreement to have exemption of payment of Social security contributions in the
1. U.S.A 2. Australia 3. Netherlands 4. Canada 5. Afghanistan
3. India retained its rank……………….out of 182 countries, the same as in 2006, in the Human Development
Report released in the month of October, 2009?
1. 182 2. 1 3. 14 4. 134 5. 111
4. Who was recently appointed as the Adviser to Manmoohan Singh on infrastructure, innovation and information
on October 7, 2009?
1. Rangarajan 2. V.K.Saraswath 3. Sam Pitroda4.
5. China celebrated her……….anniversary, exposing its military might and popular support at Tiananmen Square?
1. 61 2. 53 3. 60 4. 5 5. 100
6. Oil and Natural Gas Corporation was approved to construct and develop the gas field in the state of ……
As approved by the Cabinet Committee on Economic Affairs (CCEA) on October 1, 2009?
1. Saudi 2. Iran 3. Iraq 4. Australia 5. Vietnam
7. The capital Gains tax is levied on ……………..in India, which is another form of Direct Tax?
1. Working capital 2. Fixed capital 3. Deposited capital 4. Roll capital 5. Sale of assets
8. Three Americans Willard S.Boyle, George E. Smith and Charles K.Kao shared the 2009 Nobel Prize in Physics
for the development of…..
1. light and sound 2. the birth of stars 3. the moment of force 4. the kinetic energy 5. the fiber-optic cable
9. Which Indian clinched the Gold in the Asian Clay Shooting Championship at Almaty, Kazakhstan in Oct’09?
 1. Marvath Singh 2. Milka Singh3. Manavajit Sing 4. Mary Singh 5. Mallika Singh
10. BSNL and MTNL joined the hands to acquire Zain Telecom on October 5, 2009, in the state of…….?
1. Vietnam 2. Kuwait 3. Iran 4. South Africa 5. Fiji
11. North eastern states intended to combat militancy by having the agreement of…….. . The militants have the
Practice of taking shelter in one state and indulging the violence in the other state?
1. NIA 2. CoBRA 3. NSG 4. SMAC 5. CBI
12. Which international Organization appointed a special envoy, Abdullah Bin Abdul Rahaman Al Bakr
to Jammu& Kashmir , on Oct 2, 2009 resisted by India?
1. OPEC 2. AL 3. OIC 4. IFC 5. OIFC
13. G-24 vice chairmanship given to India and it is headed by……………..?
1.Manmohan Singh 2. Pranab Mukarjee 3. Kapil Sibal 4. Mantek Singh Ahluwalia 5. D.subba rao
14. For the popularization of Science, who received the UNESCO’s Kalinga prize?
1. Yash Pal 2. Kasturi Rangan 3. Ramakrishnan 4. Madhavan Nair 5. Abdul Kalam
15. ATTA-DAL is the scheme introduced by ……….providing wheat flour and dal through PDS?
1. Rajasthan 2. Maharastra 3.Andhra Pradesh 4. Kerala 5. Karnataka
16. Which state government was given the permission to do the mining in area of about 600 hectors in Aravali
Ranges?
1. Uttar Pradesh 2. Madhya Pradesh 3. Rajasthan 4. Kerala 5. West Bengal
17. To check anti-national elements and circulation of fake Indian currency, India and….agreed to launch Joint
Operations in the borders of both countries?
1. Bhutan 2. Pakistan 3. Bangladesh 4. Srilanka 5. Nepal
18. In which state State Bank of India and other banks agreed to provide micro-finance loans to village communities
to install solar lightning systems ?
1. Andhra Pradesh 2. Haryana 3. Orissa 4. Uttar Pradesh 5. Goa
19. C.B.Mutthamma died on 14 Oct 2009, the first lady ambassador to ………in 1970?
1. U.S.A 2. Nepal 3. Hungary 4. U.K 5. Saudi
20. Devadasi Awardf-2009 conferred on ……..the award given in the filed of dance?
1. padma Subramanian 2. Reddy couple 3. Vempati Satyam4. Meernada Barthakur 5. none
21. 1400 MW nuclear power station in Mandla district in ………will be established by Nuclear
Power corporation
Of India ( NPCL)?
1. Madhya Pradesh 2. Chattisgarh 3. Uttara Khand 4. Jammu 5. Goa
st
22. 121 Assembly of the Inter-Parliamentary union in Geneva lead by……….from India?
1.Meira Kumar2. Man Mohan Singh 3. Hamid Ansari 4. Purandareswari 5. Somnath
Chaterjee
23. Gram Choukidars ( Security Guards) appointed by …….to strengthen intelligence net work in
the
naxal affected areas?
1. Jharkand 2. Chhattisgarh 3. Orissa 4. West Bengal 5.Assam
24. India becomes the capital of Diabetes and by 2030 9% of Indian population will be affected by
this joyful
Disease. This was declared by the World Diabetic Congress held recently in………..?
1. New York 2. New Delhi 3. Ho Noi 4. Montreal 5. Osaka
25. To protect domestic market, India imposed anti dumping duty on imports of fiber board to
protect
Domestic industry from the cheap shipments from ………..
 1. Canada, Sri Lanka, Indonesia 2. U.S.A, Japan, Australia 3. China, U.S.A, Russia
4. Canada, Brazil, Argentina 5. China, Malaysia, Thailand
26. Legion d’ Honneur ,the highest award of France conferred on ………., who contributed for the
development
for the development of French language, who is an Associate Professor in Rajasthan University?
1. Asha chakravarthy 2. Asha Pandey 3. Asha Volta 4. Asha Chandra 5. Asha
Kuroop
27. Manna Dey received the prestigious Dad Saheb Phalke award recently. He is fame Hindi
film…….?
1. Director 2. Lyricist 3. play back singer 4. costumes designer 5. producer
28. For the welfare of…….the union cabinet decides to include three more schemes. 1. National
Rural Drinking
Water Programme 2. Urban infrastructure Development Scheme for Small and Medium
Enterprises 3. Urban
Infrastructure and Governance Scheme.
1. minorities 2. EBC 3.SC and ST communities 4. Woman 5. Senior
Citizens
29. ……..th Law commission was constituted for the period of 3 years form 1 sep 2009?
1. 18 2. 94 3. 21 4. 36 5. 19
30. Springer Link is……………………..?
1. water shed programme 2. rain fall habituation 3. computer soft ware 4. e-source of books 5.
cycling of paper
31. On 26 October 2009, who chaired the Prime Minister’s council on climate change on the national
mission
on sustain the Himalayan Eco-systems in New Delhi?
1.Kapil Sibal 2. Pauchori 3. Amartya Sen 4. Abdul Kalam 5. Man Mohansingh
32. YudhAbhyas, the Indo-US military exercise on October 26 2009, at ………..in Uttar Pradesh?
1. Kanpur 2. Jhansi 3. Varanasi 4. Oudh 5.
Babina
33. BAUMA-2010 is………..?
1. Military Tank of India 2. International Trade Fair on Construction
3. India’s satellite on Mars 5. India’s new warship
34. Which three tech giants agreed to provide wireless broadband internet and affordable
computers in Rural India?
1. Airtel,Satyam, Vodafone 2. BSNL, IDEA,INFOSYS 3. BSNL, HCL, INTEL
4. HCL, BSNL, Virgin 5. IDEA, HCL, BHEL
35. A country allowed having an “INDIA ZONE” along the Suez Canal development area. It is..?
1. Egypt 2. Saudi 3. Nepal 4. Bangladesh 5. Sri lanka
36. EKUVERIN is…………….?
1. cotton seed 2. U.S helicopter 3. Russian aircraft
4. President’s painting 5. joint navy exercise of India and Maldives
37. CADEX-2009 is……….?
1. India’ research centre in Arctic2. U.S aircraft carrier 3. U.K’s war ship
4. India and France joint military exercise 5. India and Srilanka joint military exercise
38. 2009 Man Booker prize received by………….?
1. Salman Rushdie 2. Hillary mantel3. Englila Markel 4. Aravinda Adiga 5. Mishori Banga
39. Which south Asian country decided to go to U.N to settle a long –standing dispute with India and
Myanmar over a maritime boundary dispute?
1. Nepal 2. Pakistan 3. Bangladesh 4. Sri lanka 5. Mauritius
40. …………,the first lady deputy prime minister of Nepal .
1. Manjula Koirala 2. Pramila Koirala 3.Rani Koirala 4. Sruthi Koirala 5. Sujatha Koirala
41. Which Hindu festival was celebrated by Barrack Obama amid the chanting of Vedic mantras, a gesture of
his religious tolerance and his country men/
1. Duseera 2. Sankranthi 3. Diwali 4. Holi 5. Vinayaka Chathurdi
42. In connection of which disease , US government declared National Emergency on 23 October, 2009?
1. Aids 2. Cancer 3. T.B 4. H1N1 5. H5N5
43. Irani Cup 2009 lifted by ………………….?
1. West Zone 2. Mumbai 3. East Zone 4. Rest of India 5. South Zone
44. Petroleum Sports promotion Award—2009 given to ………..?
1. Saina Sehwal 2. Gopichand 3. Abhinav Bhindra 4. Sachin 5. Sania Mirza
45. Which Indian was given fellowship by an Italian based TWAS, which promotes the scientific capacity
and excellence recently?
1. Ramakrishan 2. Madhavan Nair 3. T.K.Chandrasekar 4. Majula Bhargav 5. Mani Shanker
46. On October 17, 2009 which state cabinet held a meeting in sea, to get attention of globe to tell about
the global warming?
1. U.S.A 2. Russia 3. Norway 4. Sweden 5. Maldives
47. Red Panda is one of the rare and endanger animal species in the globe categorized in Schedule I of the
Wild life protection Act, 1972. it is more seen in the country of………?
1. India 2. Russia 3. China 4. Armenia 5. South Africa
48. Who is the first Sikh permitted to wear turban and do the active duty in U.S.army ?
1. Milka Singh 2. Mohinder Singh 3. Kamaljeet Singh 4. Vruddha Singh 5. Nalini Singh
49. Akshya Samman-2009 received by ?
1. Hari Prasad Chourasia 2. Pt. Ravi Shankar 3. Alla Rakha Khan 4. Lata Mangeskar 5. None
50. Asian Power Utility award-2009 received by……………?
1. North Delhi Power Distribution 2. Uttar Pradesh Power Distribution 3. Sikkim Power Distribution
4. Andhra Pradesh Power Distribution 5. GoaPower Distribution

PAPER 7 key
1.5 2.3 3.4 4.3 5.3 6.5 7.5

8.5 9.3 10.2 11.4 12.3 13.2 14.1

15.1 16.3 17.5 18.4 19.3 20.4 21.1

22.1 23.2 24.4 25.5 26.2 27.3 28.1

 29.5 30.4 31.5 32.5 33.2 34.3 35.1

36.5 37.3 38.2 39.3 40.5 41.3 42.4

43.4 44.1 45.3 46.5 47.3 48.3 49.1

50.1

PAPER 8
1. On Dec 7, 2009 who was elected as the president of Rajasthan Cricket Association , defeating
the present
chairman Lalith Modi?
1. Sarad Pawar 2. Sival Lal Yadav 3. Dungarpur 4. Sachin Tendulkar 5. C.P.Joshi
2. Technology up gradation fund (TUF) also used for...industry as decided on 7 Dec 7, 2009.
Dayanidhi Maran
also used this fund to upgrade Textiles?
1. Cement 2. Diamond 3. Steel 4. Oil 5. Paper
3. Dubai World crisis cause much tension in the Gulf and few projects in India indirectly. In India
it is a partner
in the building of trans-shipment hub on the ………..island off the Kochi coast as it said on 7
Dec, 2009?
1. Wheeler 2. Andaman 3. Nicobar 4. Vallarpadam 5. Mannar
4. To reduce the inequality between the teledensity between town and village, the central ministry
of Teleco-
mmunication decided to declare the subsidy of ……….cr to the service providers in the form of
subsidy?
1. 10000 2. 80,000 3. 1,00,000 4. 6,000 5. 18,000
5. Who was arrested on the charges of conspiracy 26/11 attacks in India in the U.S. Court on Dec 7,
2009?
1. sayeed Hamed 2. Bankath Mulla 3. Richard Hadley 4. Gornika Chrestin 5.
Monthern Pubi
6. Russia and India made agreements at Moscow as the prime minister of India is on tour in Russia.
On Dec 7
2009, few highlights of the agreements are given below. Pick up the wrong one?
1. Russia agreed to set up more Nuclear Reactors in India 2. Russia provides uninterrupted
supply of
Nuclear fuel to India 3. India rejected the buying of camov helicopters
4. Apart from 190 Sukhois, Russia supply another 50 sukhois.
5. Gorshakov price is almost settled though the price is not disclosed
7. On 7 Dec, 2009 the Un Climate Change Conference was begun at Copenhagen. Among the
following,
Which one is wrong statement?
 1. Head of the UN’s InterGovernmental Panel on Climate Change ( IPCC) R.K. Pachauri had
given
given the narration of the previous summit report, 2007
2.He said it was 90 % certain that the humans were to blame for global warming.
3.P.M. Lars Lokka Rasmussen said it was opportunity to use this meeting for to give good conclusion
4. Secretary of the UN Frame Work Convention on Climate Change Yo De Boer attended
5. On first day Indian Prime minister Man Mohan Sing participated in this meeting
8. Which among the following statements is incorrect regarding the UN Climate change
conference?
1. This is the 15th climate summit attended by 192 states.
2. It decides the aims of the Global Nations to reduce the emissions between 2012-2020.
3. Noble Laureate Amartya Sen on the first day warn to raise the funds for climate change
4. Kyoto Protocol expires in 2012. 5. it is not better to increase the emissions by 44 Billion
tones
9. Of the following statements which one is correct regarding the glossary of carbon emission?
1. under Clean Development Mechanism ( CDM) India permitted 1455 projects. We get carbon
Emission
Reduction (CER) certificates which can be sold
2. Selling CER , India fetches not less than 6 Billion Dollars. We get 33.7 Billion Dollars due to
1400 projects.
3. One Carbon Credit equal to 1 tonne carbon 4. Carbon credits we get either by carbon
set-off
Or by establishing non-carbon emission projects like solar, wind power projects 5. All of Above
10. Indian Institute of Nephrology in the 40th conference at Gawhati conferred the fellowship on……
who is the Principal of Gandhi Medical College , Hyderabad?
1. Dr. Soma Raju 2. Dr. Nageswar Reddy 3. Dr. Setu Babu 4. Dr. Prateep Desh Pande 5.
None
11. Bolivia reelected …….as the president of Nation for second time that is leftist on Dec 7, 2009?
1. Christian Fernedes 2. Evo Morales 3. Rajpkse 4. Hamid Karzai 5. Abijith Navanae
12. Anarkali fame Bollywood heroine died on Dec 6, 2009. She is……….?
1. Bina Roy 2.Madhu Bala 3. Nargis Dutt 4. Devika Rani 5. Helen
13. A blow to Indian representation in U.N Climatic Conference in Copenhagen. Chandra Sekhar
Guptha and
……………….. were left out from the troop of Indian Nation on the differences over Per Capita
Carbon
omission, technology transfer e.t.c?
1. Pradeep Das Guptha 2. R.K.Pachuri 3. Sunder Lal 4. Medha Patker 5.
Yuga Ratna
14. ……..year Anniversary of Babri Masijid demolition over with the discussion of Liberhan report in
Indian parliament on 6 Dec 5 2009?
1. 15 2. 18 3. 20 4. 21 5. 17
15. Indian National Science Academy celebrated ……year celebrations on Dec 6, 2009 having base at Kolkatta
1. Silver 2. Golden 3. Diamond 4. Platinum 5. Centenary
16. In the newspapers we are reading that the People’s Court ( Praja Nyayasthan), was conducted the
proceedings
 against the land scam of Nandi Infrastructure Corridor Enterprise , alleged to occupy 5000 acres
of land. This
SEZ is the part of Bangalore-Mysore Infrastructure Corridor Project ( BMICP ). Who presided
over this court?
1. Medha Patker 2. Arurn Roy 3. Anna Dorai 4. Dorai Swamy 5. Abdul Kalam
17. The import of Copra continue as the minimum support price of Copra increased to Rs. ….with
additional
Bonus of Rs. 790.The minimum Support price of Rice is Rs. 1000 & Minimum Support Price of
Wheat is Rs. 1100 presently.
1. 5000 2. 4500 3. 4000 4. 3500 5. 4450
18. On 6 Dec 2009, a statement made by Agriculture minister Sarad Pawar. Which statement is
correct in the blow?
a. India constantly keeps an eye in the usage of Pesticides and its side effects on the lives of
Human Beings.
b. The Indian Labs are equipped with such technology to guard the interest
c. Endosulfan can not be banned though Kerala Scientists observed the mental retard ness,
giddiness of its use
d. Though the few countries banned it , U.S.A and Japan did not ban
e. this pesticide manufactured by Nandiya Bio-tech, Indore, Madhya Pradesh
1. abd 2. bcd 3. bde 4. ab 5. abcde
19. By stunning victory over Sri lanka finishing 2-0 series in Test Matches, India got …..rank of ICC ratings?
1. 2 2. 1 3. 4 4. 5 5. 6
20. Jwala Gutta and V.Diju stood second in the world Super series Badminton series held on 6 dec
2009 in
1. India 2. China 3. Australia 4. Indonesia 5. Malaysia
21. Which university allows writing exam at the choice of the student. Any date he can choose to attempt exam?
1. JNU 2. OU 3. IGNOU 4. MKU 5. AU
22. A new scholarship scheme announced by the Central government to sanction the scholar ship to
High school studies and for 10+2 students also. This scheme applies to……….?
1. minorities 2. EBC 3. SC 4. ST 5. PHC
23. Which facts are correct related to Indian Railways?
a. IRCTC on line reservation increased by 128 % in PY. ( Rs 3.966 Cr)
b. 4.41 cr on line tickets are bought c. Railway runs 9,000 passenger to mobilize 1.8 cr
passengers in a day
d. It fetches 64,000 cr by moving 20 lakh tonnes of goods in a year
e. its track extends up to 63,465 k.m, linking 6,909 stations
1. abc 2. bcde 3. abcde 4. abcde 5. cde
24. On 5 Dec 2009, ISRO declared that it is going to launch a science satellite in 201. it is……..?
1. Ocean Sat 2. Mat Sat 3. Megha Sat 4. Raman Sat 5. Astro Sat
25. On 5 Dec 2009 the chairman of outlawed ULFA was presented before the court. He is….?
1. Kobady Gande 2. Arabinda Rajkowa 3. Raj Barua 4. Richard Hadley 5. Sayeed

26.Big explosion caused the claims of 112 members in a Russian hotel on 5 Dec 2009. Name of hotel is?
1. Sherton 2. Perm 3. Oberai 4. Sodka 5. Maccue
27. Which committee is associated with Infrastructure financing?
1. Sunglu 2. Liberhan 3. Deepak Parekh 4. Chaturvedi 5. Hooda
28. Cristina Fernandez De Kirchner who visited India recently is the president of ..?
1. Cuba 2. Italy 3. Argentina 4. Greece 5. Japan
29. Which country wanted its nationals not to visit India, as there is threat to the lives of Jews?
1. U.S.A 2. Dubai 3. Israel 4. Portugal 5. Italy
30. Jan Ausjadjo is the programme of the Central Government to infuse the funds in the sick units of…?
1. Iron and steel industries 2. Cement 3. Aero space 4. Ayurveda 5. Pharmaceutical
31. Shera is the official mascot of …….games to be held in 2010?
1. international men hockey 2. FIFA 3. Asian games 4. Common Wealth 5. None
32. The first African team wins the under-20 FIFA world cup held in Cairo in 2009?
1. South Africa 2. Nigeria 3. Eritrea 4. Zimbabwe 5. Ghana
33. Sanatan Sanstha, is the right wing Hindu extremist Organization suspected of Diwali blast in
…….?
1. Andhra Pradesh 2. Delhi 3. Madhya Pradesh 4. Jammu 5. Goa
34. Pradhan Mantri Gram Sadak Yozana to link Indian rural roads is running the target behind to complete the
schedule of the original 2007-2008. it accomplished only 59 % in the total. The aim pushed to the years of
1. 2012-13 2. 2014-2015 3. 2016-2017 4. 2018-2019 5. 2020-2021
th
35. 34 National games are to be scheduled in the state of……….which were postponed due to elections slated
to be held in 2009. 2010 games will be held in kerala, 2011 games will be held in Goa, 2012 games are
scheduled to be held in Chandigarh, 2013 National Games bidding by U.P ?
1. Andhra Pradesh 2. Tamilnadu 3. Chattisgarh 4. Jammu 5. Orissa
36. London based Charted Accountant Maoist brain arrested in India and send to various courts. He is …?
1. Ganapathi 2. KobadGandy 3. Mallojula 4. Ramakrishna 5. Richard Hadely
37. Churchill Brothers defeated ………to become the winner of Durand Cup 2009?
1. Andhra Pradesh 2. Dempo 3. Mohan Bagan 4. Mahendra 5. East Bengal
38. On 21-22, Sep 2009 Moinu Dowla Cup held in Hyderabad. In this cricket event, who defeated the
Hyderabad team ?
1. Calcutta 2. Andhra 3. Jammu 4. Mumbai 5. Uttar Pradesh
39. Rajiv Awas yojana and Jawahar Lal Nehru National Urban Renewal Mission are the targets of develop
1. Rural Areas 2. Roads 3. Urban areas 4. Water Tanks 5. Education
40. Which operation was launched by the security forces to end the Naxalisam in the Baster region ?
1. Cobra 2. Blue Star 3. Green Hunt 4. Demolition 5. Salam
41. Displacing U.S.A in the top destination for exports in the fiscal year 2008-2009, which country
got
First rank due to hike in the value of Gems and Jewllery?
1. U.K 2. Japan 3. Mauritius 4. U.A.E 5. Australia
42. Central government decided to shift to a ……………WPI from the currently trend of Weekly one?
1. Yearly 2. Half-yearly 2. Monthly 3. Fortnight 4. Quarterly
43. In practice we follow the base year of 1993-1994 to calculate WPI. Now it is changed in to….?
1. 1995-1996 2. 1996-1997 3. 2001-2002 4. 2004-2005 5. 2008-2009
44. …….was arrested by West Bengal Government under Unlawful Prevention Act?
1. Ganapathi 2. Kobad Ghandy 3.Chataradhar Mahato 4. RamaKrishna 5.
Kishnaji
45. Nagaland got Nikhil Kumar as the new Governor. He is the ex police commissioner of …..
1. Hyderabad 2. Chennai 3. Mumbai 4. Delhi 5. Nagapur
46. How many banks in India are equipped with banking service in India as per R.B.I. In India there
are
seven lakh villages are there.
1. 30,000 2. 30,500 3. 31,000 4. 31,500 5. 32,000
47. Elinor Ostrom and Olover Williamson won the noble 2009 in the field of Economics. They
received this
prestigious award as they did research on ………..
1. demand and supply 2. corporate ranking 3. closure of banks 4. international crisis
5. people exercise authority in companies and corporate systems
48. The high level task force headed by …….will look in to the problems of MSE’s by the PM?
1. Chaturvedi 2. Ranga RAjan 3. Persi Mistri 4. Lekhi 5. TKA Nair
49. IBSF world snooker champion ship held in
1. Goa 2. Delhi 3. Jammu 4. Hyderabad 5. Kanpur
50. In India the first solar city will be……….?
1. Delhi 2. Indore 3. Hyderabad 4. Mumbai 4. Gurgoan

PAPER 8 KEY

1.5 2.5 3.4 4.5 5.3 6.3 7.5 8.3 9.5 10.4

11.2 12.1 13.1 14.5 15.4 16.4 17.5 18.5 19.2 20.5

21.3 22.1 23.3 24.5 25.5 26.2 27.3 28.3 29.3 30.5

31.4 32.5 33.4 34.1 35.3 36.2 37.3 38.5 39.3 40.3

41.4 42.3 43.4 44.3 45.4 46.3 47.5 48.5 49.4 50.4

AWARDS
Ernst & Young Entrepreneur of the Year Awards, 2009
Entrepreneur of the year: Anand G. Mahindra, Vice Chairman and MD of Mahindra Group.
Lifetime Achievement award: N. Vaghul, Ex-Chairman of ICICI Bank Ltd.
Entrepreneur of the year (Start-up): Amit Mittal, Chairman and Managing Director of A2Z
Maintenance & Engineering Services Pvt. Ltd.
Entrepreneur of the year (Business transformation): Dr Vikram Akula, Chairperson & founder
SKS Microfinance Ltd.
Entrepreneur of the year (Manager): O.P. Bhatt, Chairman, State Bank of India.
Entrepreneur of the year (Manufacturing): Harsh C. Mariwala, Chairman and Managing
Director, Marico Ltd.
Entrepreneur of the year (Healthcare and Life Sciences): Pankaj R. Patal, Chairman and
Managing Director, Zydus Cadila Healthcare Ltd.
Entrepreneur of the year (Services): Shashi Kiran Shetty, Chairman and Managing Director,
Allcargo Global Logistics Ltd.

Sasawaka Prize of UNEP, 2010

A portable light that can be recharged by pedalling for 20 minutes and was developed for use in
areas not wired for electricity, has won a Canadian of Indian origin, Sameer Hajee, the prestigious
Sasakawa Prize of the United Nations Environment Programme (UNEP).

The device has been developed by Nuru Design (Nuru means light in Swahili). A pilot project is
already in place in Madhya Pradesh and Orissa. The device, called the Nuru light, is essentially a
lighting system that can be recharged by a pedal generator—the Nuru POWERCycle.

Nuru Light’s objective is to replace the use of expensive, polluting, unhealthy, and dangerous
kerosene as a source of lighting for the two billion people without access to electricity. Of those,
nearly 580 million are in India.

Sangeet Natak Akademi Awards

Punjab has for the first time bagged the highest number of awards in the performing arts category
for 2009, since the inception of the Sangeet Natak Akademi in 1952.
The winners of the coveted honour include Ustad Lachhman Singh Seen (classical music tabla),
Ustad Vilayat Khan, Goslan Khanna (ragi/dhadi) and Neeta Mahindra (theatre). Besides Kamal Arora
(theatre make-up) from Chandigarh is another recipient.

The award carries a citation, a shawl, a memento and a cash prize of Rs 1,00,000.

Grammy Awards, 2010

Life Time award: Michael Jackson, posthumously.
Album of the Year: Taylor Swift, Fearless.
Song Written for Motion Picture, Television or Other Visual Media: Jai Ho, written by Gulzar,
A. R. Rahman and Tanvi Shah, from “Slumdog Millionaire”.
Record of the Year: Use Somebody, Kings of Leon.
New Artist: Zac Brown Band.
Song of the Year: Single Ladies (Put a Ring on It), written by Thaddis Harrell, Beyoncé Knowles,
Terius Nash and Christopher Stewart (Beyoncé).
Female Pop Vocal Performance: Halo, Beyoncé.
Male Pop Vocal Performance: Make it mine, Jason Mraz.
Pop Performance, Duo Or Group: I Gotta Feeling, the Black Eyed Peas.
Pop Collaboration: Lucky, Jason Mraz and Colbie Caillat.
Pop Instrumental Performance: Throw Down Your Heart, Béla Fleck.
Pop Instrumental Album: Potato Hole, Booker T. Jones.
Pop Vocal Album: The E.N.D., the Black Eyed Peas.
Solo Rock Vocal Performance: Working on a Dream, Bruce Springsteen.
Hard Rock Performance: War Machine, AC/DC.
Metal Performance: Dissident Aggressor, Judas Priest.
Rock Song: Use Somebody, written by Caleb Followill, Jared Followill, Matthew Followill and Nathan
Followill.
Rock Album: 21st Century Breakdown, Green Day.
Alternative Music Album: Wolfgang Amadeus Phoenix, Phoenix.
Female R&B Vocal Performance: Single Ladies (Put a Ring on It), Beyoncé.
Male R&B Vocal Performance: Pretty Wings, Maxwell.
Female Country Vocal Performance: White Horse, Taylor Swift.
Male Country Vocal Performance: Sweet Thing, Keith Urban.
Score Soundtrack Album for Motion Picture, Television or Other Visual Media: Up.

CYBER SPACE
Google plunges into social networking with Buzz
On February 9, 2010, Google introduced a new service called Google Buzz, a way for users of its
Gmail service to share updates, photos and videos. Buzz is Google’s boldest attempt to build a
social network that can compete with Facebook and Twitter. The service is built into Gmail. And
Buzz comes with a built-in circle of friends, a group that is automatically selected by Google based
on the people that a user communicates with most frequently in Gmail and on Google’s chat service.

Like other social services, Buzz allows users to post status updates that include text; photos from
services like Google’s Picasa and Yahoo!’s Flicker; videos from YouTube; and messages from
Twitter. Analysts say many of its features mimic those of Facebook.

Google executives say that Buzz would help tackle the problem of information overload, as Google
would apply its algorithms to help people find the information most relevant to them.

EDUCATION
SEBI takes investor education to schools
Class 8 and 9 students at 26 schools all over the country are taking lessons in investor education
these days, courtesy the capital market regulator SEBI. The optional three-month course teaches
these students the importance of money, how to manage it and concepts of budgeting and saving.

The initiative follows the Securities and Exchange Board of India’s (SEBI) decision to facilitate
financial literacy to children before they complete their secondary education. The regulator feels
catching them young is the only way of increasing the number of households investing in the equity
market. The number is paltry, even after decades of a free capital market. Consumer Pyramid, a
survey of 120,000 households done by the Center for Monitoring Indian Economy (CMIE), showed
only 6.5 per cent of Indian households invest in shares and only 1.12 per cent of the total savings
flow into listed shares and mutual funds.

SEBI is implementing the financial literacy programme through the National Institute of Securities
Markets (NISM), set up by the regulator to improve the quality of the market through educational
initiatives. A pilot project, called the School Financial Literacy Programme, is being supervised by
the National Progressive Schools Conference. Of the 26 schools, 13 are from north India, 11 from
the south and two from the east.

N-ENERGY
India’s 18th nuclear plant
India’s 18th nuclear power plant at Rawatbhata in Rajasthan (RAPS-5) began production on
February 6, 2010. The plant has been set-up by the Nuclear Power Corporation of India. The
indigenously built 220 MW unit uses fuel imported from Russia which has been acquired after India
got waiver from Nuclear Suppliers Group guidelines in September 2008. The operationalisation of
RAPS-5 has increased the capacity of Rawatbhata plant to 96 MW. The project, set-up in September
2002, took six years to complete. It had remained idle for some months because of lack of fuel.

With the commissioning of RAPS-5 the total installed nuclear power capacity of India has risen to
4,340 MW.

RESEARCH
Path-breaking energy source unveiled
Indian American Silicon Valley entrepreneur and former NASA scientist, K.R. Sridhar, has unveiled
his "Bloom Box," which can generate energy by combining air and a range of fuels without going
through the dirty process of combustion—all in its owner's back yard. He describes it as "the plug-
and-play future of electricity."

The Bloom Energy Server, a patented solid oxide fuel cell (SOFC) technology, provides a cleaner
and more reliable alternative to both today’s electric grid as well as traditional renewable energy
sources. Sridhar says each Bloom Box can power up to six homes in India.

Bloom's fuel cell works in this way: Oxygen is pumped in on one side and natural gas on the other.
The two combine inside the cell to create a chemical reaction that produces electricity, without any
combustion or power lines. A Bloom Energy Server consists of thousands of Bloom's fuel cells—flat,
solid ceramic squares made from a common sand-like “powder”. Each server provides 100 kilowatts
of power in roughly the area of a parking space. Unlike traditional renewable energy technologies,
like solar and wind, which are intermittent, Bloom’s technology can provide renewable power 24/7.
World’s most precise clock
Scientists claim to have created the world's most precise clock based on the oscillation of a trapped
aluminium-27 atom. According to the New Scientist, the new record-holder for the most precise
timekeeper, built at the National Institute of Standards and Technology in Colorado, USA, could tick
off the 13.7-billion-year age of universe to within 4 seconds. The optical clock monitors the
oscillation of a trapped atom of aluminium-27 and is more than twice as precise as the earlier
version, reported in 2008.

MISCELANEOUS
Panel to study merits of another time zone for India
India may be looking at another time zone in the near future, a move that could fulfill a long-
standing demand. A committee, chaired by the director-general of Bureau of Energy Efficiency
(BEE), is trying to examine the implications of another time zone in India.

The committee will report on the energy savings that would result because of a number of
interventions, of which another time zone for the country is a possibility.

While another time zone is desirable, a lot of problems can crop up that have to be carefully
examined. The magnitude of the task of setting up another time zone is enormous.

A separate time zone for the north-eastern and eastern parts has been a longstanding demand. The
east-west spread of India extends for about 28 longitudinal degrees, accounting for about 2 hours
as a result of which the sun rises two hours earlier in the eastern part of the country.

MPs can now wear tricolour to Lok Sabha

On February 18, 2010, Lok Sabha decided to allow Members of Parliament to wear the Tricolour to
the House. Amending the long-standing rules of procedure of the Lower House that prohibited the
members from wearing badges of any kind to the House, the Rules Committee of the Lok Sabha
made a vital exception to the norm to honour the National Flag.

The altered rule number 349 reads, “MPs shall not wear any badges to the Lok Sabha, except in the
form of the Tricolour as a lapel pin”. The change comes courtesy Kurukshetra MP Naveen Jindal,
who made a proposal to this effect to the committee.

Feb 2010 sports

BOXING
Vijender wins silver in Champion of Champions tournament
Olympic hero Vijender Singh broke the bronze jinx and fetched one of India’s two silver medals at
the two-day Champion of Champions invitational boxing tournament in Guangzhou, China. The 24-
year-old Olympic and World Championship bronze medallist lost 0-6 to China's Zhang Jin Ting in the
in the middle weight (75kg) category final.

The other silver medal for India came through Olympian Dinesh Kumar, who settled for silver in
81kg after losing 2-10 to Chinese Meng Fan Long.

CRICKET
Cricket can now bid for 2020 Olympics
Cricket’s push to be a part of the Olympic Games received a major boost with International Olympic
Council (IOC) granting recognition to International Cricket Council (ICC) on February 12, 2010. This
could be seen as a first step towards cricket becoming Olympic sports. Its Twenty20 version can
now bid to join the 2020 Olympic Games though ICC has not made it clear which format it will push
for.

Cricket was granted the status of a recognised Olympic sport in 2007, for sports not in the Olympic
programme but which conform to certain criteria, pending a decision for a permanent slot in the
Games.

Cricket was part of the 1900 Olympics in Paris and has not appeared since then. The game was part
of the 1998 Kuala Lumpur Commonwealth Games and its Twenty20 version is set to feature at
Asian Games in Guangzhou, China.
Sachin becomes first batsman to hit a double hundred in an ODI
Sachin Tendulkar rewrote the record books on February 24, 2010, hammering the first double
century in the history of one-day cricket to add another feather to his well-adorned cap. The
capacity crowd at the Captain Roop Singh Stadium, Gwalior witnessed history as Tendulkar,
statistically the greatest batsman the game has ever seen, pushed South African bowler Charl
Langeveldt’s delivery through the off-side and ran a single to achieve a feat which no other cricketer
has achieved.

One Day International cricket, since its 1971 inception, had to wait nearly four decades to see a
batsman score 200. The previous best mark was shared by Zimbabwean Charles Coventry (194 not
out) and Pakistan’s Saeed Anwar (194).

Top 5 highest individual knocks in the history of one day cricket are:
200*: Sachin Tendulkar (Ind) vs South Africa in Gwalior on February 24, 2010.
194*: Charles Coventry (Zim) vs Bangladesh in Bulawayo on August 16, 2009.
194: Saeed Anwar (Pak) vs India in Chennai on May 21, 1997.
189*: Viv Richards (WI) vs England in Manchester on May 31, 1984.
189: Sanath Jayasuriya (SL) vs India in Sharjah on October 29, 2000.

India-South Africa Test Series

India crashed to a humiliating innings and six runs defeat in the first Test played in Nagpur. This
was the first Test defeat under Mahinder Singh Dhoni’s captaincy.

India levelled the two-Test series after winning the second Test at Eden Gardens, Kolkata by an
innings and 58 runs. With this win India managed to retain the number one Test team title it
received when it first topped the ratings in December 2009, as also pocketed a cheque for Rs 78.75
lakh.

India-South Africa One-day series

India eked out one-run victory in the first match played at Jaipur. India, batting first, had set a
target of 299 runs. South Africa was bowled out by India for 297. The second match at Gwalior by
153 runs. The highlight of the match was Sachin Tendulkar becoming the first batsman in the world
to hit a double century in One-day format.

India lost the third and last match at Ahmedabad by 90 runs thus depriving itself a chance to
register their first ever clean sweep against South Africa. India won the series 2-1. Sachin
Tendulkar was declared the man-of-the-series.

Australia-West Indies One-day series

Australia defeated West Indies by 113 runs in the first match played at Melbourne.

GAMES
South Asian Games, 2010
The 11th edition of South Asian Games (SAG) opened at the Bangabandhu National Stadium,
Dhaka, on January 29, 2010. The aquatic show was the main attraction of the opening ceremony, in
which a concert hosted by Pt. Ravi Shankar and Beatles star George Harrison for Bangladesh’s
Independence day and the March 7 address of Sheikh Mujibur Rehman were displayed on a water
screen.

This was the third time that the Bangladeshi capital hosted the Games, thus becoming the first city
to hold the games three times.

Athletes from eight countries— Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan
and Sri Lanka—competed in 23 different sports. India continued its dominance with 175 medals,
including 90 gold medals. Pakistan narrowly beat the host to occupy the second spot with 19 golds,
while the host Bangladesh capture 18 golds, including the most popular and prestigious football and
cricket titles. Sri Lanka’s Shehan Abeypitiya became the fastest man while Pakistan’s Naseem
Hamid was crowned the fastest woman of the region.

The logo of the Games was 'Kutumb', a flying doel, known in English as the Oriental Magpie Robin.
It is the National Bird of Bangladesh. The mascot also featured a Magpie Robin.
Delhi will host the next South Asian Games. India was picked to host the regional sporting event
after Bhutan, whose turn it was to host the next SAG, expressed its inability to stage the meet.
India has hosted the South Asian Games twice thus far—in 1987 (Kolkata) and in 1995 (Chennai).

Winter Olympics, 2010

The 2010 Winter Olympics, officially the 21st Winter Olympics, were a major international multi-
sport event held on February 12–28, 2010, in Vancouver, British Columbia, Canada.

Approximately 2,600 athletes from 82 nations participated in 86 events in fifteen disciplines.

Cayman Islands, Colombia, Ghana, Montenegro, Pakistan, Peru and Serbia made their winter
Olympic debuts. Also Jamaica, Mexico and Morocco returned to the Games after missing the Turin
Games.

The 2010 Winter Olympics were the third Olympics hosted by Canada, and the first by the province
of British Columbia. Previously, Canada hosted the 1976 Summer Olympics in Montreal, Quebec and
the 1988 Winter Olympics in Calgary, Alberta.

Canada topped the medals tally with 14 gold, 7 silver and 5 bronze medals. Germany was second,
followed by USA.

The 2014 Winter Olympics will be held from February 7 to February 23, 2014 in Sochi, Krasnodar
Krai, Russia.

GOLF
Asian Tour International crown
Gaganjeet Bhullar scripted a sensational come-from-behind victory at Asian tour International
crown, played at Bangkok. This was his second Asian tour title.

SHOOTING
Commonwealth Championships, 2010
With 23 gold medals, 17 silver and 9 bronze medals, India topped the medals tally of the
championships held in Delhi in February 2010. England was second in the medals tally, followed by
Australia.

PLANNING & ECONOMY

Union Budget, 2010
On February 26, 2010, Finance Minister Pranab Mukherjee presented a Budget that broadly
focused on fiscal stabilization. The Union Budget was presented at a time when the Indian
economy was on the path of revival and almost all demand indicators had turned significantly
positive. Investment and consumption demand was also on a revival mode. The buoyancy in the
manufacturing sector and up-tick in import and export were also working well for economic
growth prospects. In the current economic scenario, what was required from the Budget was a
further push for consumption and investment. The Budget announcements tried to do just that.

Highlights:

• Additional Rs 1,65,000 cr for bank re-capitalisation

• Rs 3000 cr for agricultural impetus
• Farm loan payments to be extended for six months
• Fertilizer subsidy to be reduced
• Rs 100 cr woman farmer fund scheme
• Coal regulatory authority to be set up
• Clean energy fund to be established
• Interest subvention of 2% to be extended for handicrafts and SMEs
• Rs 200 cr for Tamil Nadu textile sector
• Interest subvention for housing loans up to 1 lacs
 • Allocation to defence raised to Rs 1.47 lakh cr
• Defence capex raised to Rs 60,000 cr
• Divestment target of Rs 25,000 cr
• Rs 1200 cr assistance for drought in Bundelkhand
• Rs 48000 cr for Bharat Nirman
• NREGA scheme allocation raised to Rs 41,000 cr
• Allocation to health Rs 22,300 cr
• Allocation for school education up from Rs 26,800 cr to Rs 31036 cr
• Allocation to power sector at Rs 5130 cr
• Rs 10,000 cr allocated for Indira Awaas Yojna
• Social Security Fund to have corpus of over Rs 1000 cr
• Rs 2400 cr for MSMEs
• Government to contribute Rs 1000 per month for pension security
• Rs 5400 cr allocated for urban development
• Rs 66100 cr allocated for rural development
• Rs 1900 cr allocated for UID project
• Gross tax receipts Rs 7.46 lakh cr
• Government to set up National Mission for delivery of justice
• 15% rise in planned expenditure
• Fiscal deficit target of 5.5% in FY11
• Excise on all non smoking tobacco raised
• Televisions to be costlier
• Mobile phones to become cheaper
• Cement to be costlier
• Refrigerators to be costlier
• Jewellery to be more expensive
• Monorail granted project import status
• CDs to be cheaper
• Excise duty on CFL halved to 4%
• Bank farm loan target: Rs 3.75,lakh crore
• Nutrient based fertiliser subsidy scheme to come into force from April 1, 2010
• To build 20 km of highway every day
• Income tax on income upto Rs 1.6 lakh: Nil
• Income tax on income above Rs 1.6 lakh and upto Rs. 5 lakh: 10 per cent
• Income tax on income above Rs.5 lakh and upto Rs. 8 lakh: 20 per cent
• Income tax on income above Rs. 8 lakh: 30 per cent

Economic Survey 2010

• Economy likely to grow by up to 8.75 per cent in 2010-11.

• Full recovery; return to 9 per cent growth in 2011-12.
• Broad recovery gives scope for gradual stimulus roll back.
• High double-digit food inflation in 2009-10 major concern.
• Signs of food inflation spreading to other sectors.
• Farm & allied sector production falls 0.2% in 2009-10.
• Need serious policy initiatives for 4% agriculture growth.
• Moots direct food subsidy via food coupons to households.
• Favours making available food in open market.
• Favours monthly ration coupons usable anywhere for poor.
• Gross fiscal deficit pegged at 6.5 pc of GDP in 2009-10.
• India 10th largest gold holding nation at 557.7 tonnes.
 • Exports in April-December 2009 down 20.3 per cent.
• Imports in April-December 2009 down 23.6 per cent.
• Trade gap narrowed to USD 76.24 bn in April-December.
• 32.5% savings & 34.9% investment (of GDP in 2008-09) put India in league of world's
fastest growing nations.
• Government initiates steps to boost private investment in agriculture.
• Wants credit available at reasonable rates on time for private sector to invest in
agriculture.
• Slowdown in infrastructure that began in 2007, arrested.
• Domestic oil production to rise 11 per cent in 2009-10.
• Gas output up 52.8 per cent to 50.2 billion cubic meters with RIL starting production.
• India world's 2nd largest wireless network with 525.1 million mobile users.
• Virtually every second Indian has access to phone.
• Auction for 3G spectrum to provide existing and foreign players to bring in new
technology and innovations.

Railways Budget, 2010

Union Railways Minister Mamata Banerjee presented the Railways Budget, 2010, on February
24. No change in passenger fares was announced—Planning Commission was pitching for a hike
—and the freight rates on select, but significant items such as kerosene and food grains, were
cut to keep prices down.

54 new trains, including 10 Durantos, were announced. The Minister also promised to construct
over 1,000 km of new rail lines over next one year.

The operating ratio, proportion of expenses to earnings, which was a healthy 75 per cent in
2007-08, was up to 94.7 per cent in 2009-10. The Railways hope to bring it down to 92.3 per
cent in 2010-11. Though the budget proposes to raise net surplus from Rs 951.03 crore in 2009-
10 to Rs 3,173 crore in 2010-11, these figures were called “peanuts” by experts when
compared to the figures of some years ago.

CURRENT INTERNATIONAL AFFAIRS

DISASTER
Chile hit by 8.8 magnitude earthquake
On February 27, 2010, more than two million people were affected in some way and more than
300 people were killed as an 8.8-magnitude earthquake hit coastal Chile. Santiago, capital of
Chile, is 200 325 km northeast of the epicentre.

The quake was 700 to 800 times stronger, but at a greater depth—35 km—compared to the
shallow 14 km depth of the Haiti quake, which contributed towards much of the damage there.

Coastal Chile has a history of deadly earthquakes, with 13 quakes of magnitude 7.0 or higher
since 1973. As a result, experts said that newer buildings are constructed to help withstand the
shocks. Still, the damage from Chile's earthquake was widespread. A 15-story high rise near the
southern city of Concepción collapsed; the country's major north-south highway was severed at
multiple points; and the capital city's airport was closed after its terminal sustained major
damage.

The epicentre was just a few kilometres north of the largest earthquake recorded in the world:
a magnitude 9.5 quake in May 1960 that killed 1,655 and unleashed a tsunami that crossed the
Pacific.

WORLD ECONOMY
US Fed signals end to emergency liquidity
On February 20, 2010, the US Federal Reserve Board sent its most explicit signal yet that the
emergency supply of liquidity to financial markets is done and the most aggressive monetary
policy easing in its 96-year history will eventually reverse. Chairman Ben S Bernanke and his
colleagues at the Board of Governors raised the rate charged to banks for direct loans by a
quarter-point to 0.75 per cent. It was the first increase in the discount rate since June 2006.

The Fed portrayed the decision as a “normalization” of lending that would have no impact on
monetary policy. The assurances didn’t stop investors from increasing bets that the Fed would
tighten policy in the fourth quarter. The dollar rose and US stock futures fell after the
announcement.

US central bankers closed four emergency lending facilities in February 2010 and are preparing
to reverse or neutralize the more than $1 trillion in excess bank reserves they have pumped
into the banking system. The discount-rate increase will encourage banks to borrow in private
markets rather than from the Fed. In any case, financial institutions have reduced their
reliance on the Fed window. Banks had borrowed $14.1 billion as of February 17, 2010,
representing less than 1 per cent of the central bank’s $2.28 trillion in total assets. A year ago,
borrowing stood at $65.1 billion.

Greek debt crisis tests euro zone

The euro, the single currency that 16 EU (European Union) countries share, is usually
highlighted as one of the main achievements of the European project; a rare example of
“success” in what has increasingly become a beleaguered tale of EU infighting and lack of
vision. But, a threatening debt crisis, with Greece as the main offender, has put the euro-zone
to test like never before in its 11-year-long history. February 2010 saw the euro coming in for a
pummelling, sending ripple across global markets.

However, it is the political crisis that is posing a question mark before the very future of the
EU. The result is a monetary union that features a common currency without a matching fiscal
or political union. Thus, although the European Central Bank sets interest rates for the euro-
zone, it does so in a vacuum, with constituent governments retaining control over fiscal and
economic policy.

The large disparities between euro-zone nations have been thrown into sharp relief by the
global economic crisis. On the one hand, you have the unflatteringly named PIGS (Portugal,
Ireland, Greece and Spain), all of whom are finding accruing debt increasingly expensive,
leading to the spectre of State bankruptcy. The worst of the lot is Greece. Its economy shrank
by 1.2 per cent in 2009. Having been found out to be cooking its books for years, Greece’s
public debt is expected to break 120 per cent of output.

The poor economic condition of the PIGS, in particular Greece, has thrown up a conundrum for
the large, surplus economies of the euro-zone like France, Germany and the Netherlands.

There are three options on the table, none of which are finding immediate takers. The first is
to issue a common euro-zone bond, which would be placed at Greece’s disposal. But countries
with good credit, like Germany, are opposed to the idea because of the higher interest rates
that would result.

An alternative is giving bilateral financial aid with economically healthy countries in the euro-
zone taking out loans on the financial market at good rates and passing these on to Greece.

The final option is an old-style IMF bailout, perhaps the most sensible of the choices. But, for
the IMF to come to Greece’s rescue would be a slap in the face of EU, implying that it cannot
take care of its own house and requires an institution that has always been sceptical of the
euro to act as saviour.

Basic Capabilities Index 2009

The Basic Capabilities Index (BCI), 2009, has found that South Asia will get 80 points on the
index by 2015, 10 points higher than the present value of 70. India received 68 points in the
index, an increase of meagre four points since 2004.

The global NGO Social Watch’s index of 130 countries says 100 points defines well-being of the
citizens based on children getting education till primary level, child mortality rate and
percentage of births attended by skilled labourers. The BCI does not use income as an
indicator.

According to the index, South Asia, a region with worst BCI in 2004, has been making fast
progress, but the situation is still “extremely critical”. Since 2004, the report said, one-third
of the countries failed to raise their BCI value by more than one per cent and only one out of
six countries showed significant progress.

The index also tells about the increasing gap in living standards of rich and poor in the world.
The highest BCI is 97 of Iran and lowest is 44 of Chad in Africa, followed by Afghanistan,
Ethopia, Bangladesh and Nepal.

Japan still world’s second largest economy

Retaining its position as the world's second largest economy, the Japanese economy grew at a
faster-than-expected pace of 1.1 per cent in the last three months of 2009.

China, the fastest-growing large economy, clocked a growth of 10.7 per cent in the December
2009 quarter, bringing it at a sniffing distance to surpass Japan as the second largest economy
in the world.

Japan’s economy, which is primarily exports-driven, rose 1.1 per cent in the fourth quarter of
2009. On an annual basis, GDP expanded a much higher pace at 4.6 per cent. For the whole of
2009, the Japanese economy shrank 5 per cent and is valued at 474.92 trillion yen (about $5.1
trillion). The better-than-expected Japanese growth in the December 2009 quarter was mainly
driven by better exports and effects of stimulus measures. To bolster the recession-hit
economy, Japan had unveiled stimulus measures worth over $130 billion.

NUCLEAR PROLIFERATION
Iranian President declares Iran a nuclear State
Iranian President Mahmoud Ahmadinejad declared on February 11, 2010, that Iran had
produced its first batch of 20 per cent enriched uranium, amidst a growing view in the West
that Tehran is bluffing.

“Iran was now a nuclear State,” Ahmadinejad told a huge rally of supporters on the 31st
anniversary of the Islamic Revolution. Experts say that once Iran can enrich uranium to 20 per
cent it should move relatively quickly toward 90 per cent purification, weapons-grade fuel.

Former U.S. officials and independent nuclear experts say continued technical problems could
delay—though probably not halt—Iran’s march towards achieving nuclear-weapons capability,
giving the US and its allies more time to press for a diplomatic solution.

While Iran says its nuclear program is entirely peaceful, Western nations suspect that the
country is intent on developing an atomic bomb.

CURRENT NATIONAL AFFAIRS

AGRICULTURE
Scientists slam study behind Bt Brinjal ban
A vital study cited by Environment Minister Jairam Ramesh to justify his decision to disallow
the commercial cultivation of Bt brinjal in India is flawed, claim top European scientists. Mr
Ramesh had referred to the findings of France-based Caen University professor Gilles-Eric
Séralini and his team, which had branded Bt brinjal—India’s first genetically modified (GM)
food crop—“unsafe”.

Experts claim that Séralini was unduly influenced by the renowned international NGO
Greenpeace—with its aggressive green agenda—which sponsored the study, and never carried
out a peer-reviewed laboratory study on GM crops he called hazardous, including Bt maize and
Bt brinjal, its gene or seeds.

The European Food Safety Association, a risk assessment body, has trashed Séralini’s findings
on Monsanto’s MON 863, a variety of Bt maize.

On February 9, 2010, the Union government decided to freeze the introduction of Bt Brinjal in
India till independent scientific studies established health and environment safety of the
product to the satisfaction of both public and experts.

Bt Brinjal is a genetically modified vegetable that is infused with Cry1Ac gene from a
bacterium, bacillus thuringiensis, to make the plant resistant to fruit and shoot borers and
certain pests.

The Environment Ministry has appointed a Genetic Engineering Approval Committee (GEAC) to
regulate research, testing and commercial release of genetically modified crops, foods and
organisms. The GEAC had cleared Bt Brinjal for commercial release in October 2009. According
to GEAC Bt Brinjal would reduce farmers’ dependence on pesticides and enable higher yields.

EDUCATION
Uniform Math and Science content for Class 11 and 12
From the 2011 academic session, students of Classes XI and XII across the country will study a
uniform science and math curriculum. Currently, course content of these critical subjects
varies with the State school board an institution is affiliated to.

The idea is to have for every student a level playing field for entry to professional colleges.
The government has also received the approval of all school boards—including State boards—to
work towards a single, national-level entrance exam for all engineering and medical courses in
India from 2013. Gradually, such an exam would be extended for entry to colleges of other
disciplines, such as law.

One test would mean the end of plenty like IIT-JEE, AIEEE and State exams for engineering
colleges and various State-level PMTs, beside national level PMT, which the CBSE conducts.
This, the Human Resource Development (HRD) Ministry believes, would lessen the burden on
students, who have to prepare for different exams, which bring their own levels of stress.

ENVIRONMENT
India to launch mission to cut emissions
India will spare no efforts to contribute to the success of post-Copenhagen process, Prime
Minister Manmohan Singh declared on February 6, 2010, as he announced the launch of a
National Mission on Enhanced Energy Efficiency, aimed at cutting carbon emissions by 99
million tonnes. Within the ambit of our National Action Plan on Climate Change, India has
already unveiled one of the world's most ambitious plans for promoting solar energy, targeting
an installed capacity of 20,000 MW by the year 2022. The initiative is expected to lead to
avoidance of capacity addition of nearly 20,000 MW and reduce carbon dioxide emissions of
almost 99 million tonnes.

LAW POINT
Courts do not need nod for CBI probe: SC
On February 17, 2010, the Supreme Court upheld the constitutional validity of courts’ powers
to order CBI probe without the consent of State governments but with a rider: the powers
should be used cautiously and sparingly. The five-judge Constitution Bench, headed by Chief
Justice K.G. Balakrishnan, said that such powers have to be used sparingly in exceptional and
extraordinary circumstances in cases having national and international ramifications.
Otherwise, the CBI will be flooded with such directions in routine cases. Such powers are
vested with the apex court and High courts to ensure protection of fundamental rights of
citizens under Article 21 of the Constitution, it said.

LEGISLATION
Judicial Standards and Accountability Bill
The proposed Judicial Standards and Accountability Bill, which will replace the four decade-old
Judges Inquiry Act, has laid down 14 guidelines for judges. These guidelines will be called
judicial standards.

Major highlights of the Bill are:

• No judge shall give an interview to the media in relation to any of his judgement
delivered, or order made, or direction issued, by him in any case adjudicated by him.
• No judge shall enter into a public debate or express his views in public on political
matters, except views expressed by a judge in his individual capacity on issues of
public interest, other than as a judge during a private discussion or at an academic
forum.
• The Bill bars the judges from allowing any member of his family, who is a practising
lawyer, from using the residence in which the judge actually resides or use of any other
facilities provided to the judge, for professional work of any family member.
• The proposed law expects judges not to delay delivering a judgement beyond three
months after conclusion of arguments and have bias in judicial work or judgements on
the basis of religion, race, caste, sex or place of birth.
• Any wilful breach of judicial standards could be treated as misbehaviour and lead to a
disciplinary panel initiating proceedings against the erring judge.
• A complaint alleging misbehaviour or corruption would be referred to a scrutiny panel
comprising three judges. If the panel finds merit in any complaint, it would be
forwarded to an Oversight Committee, which after investigating the matter can refer it
to the President for initiating action against the judge.

N-liabilities Bill
In an important step towards the implementation of the Indo-US civilian nuclear deal, the
Union government is to introduce a Bill to facilitate the entry of American companies in the
nuclear sector. The Civil Liability for Nuclear Damage Bill, 2009 is commonly known as the
nuclear liability Bill.

The Bill aims at limiting the liability of a nuclear plant operator to Rs 300 crore in the
eventuality of an accident and provides for appointing a claims commissioner with powers of a
civil court to arbitrate such cases. It also provides for the penalty to be paid by the operator
and not the supplier companies, which would mainly be American in this case.

The operator would not be liable for any nuclear damages if the incident is caused by “grave
national disaster of exceptional character”, armed conflict or an act of terrorism and is
suffered by the person on account of his own negligence.

The Bill also provides for the establishment of the Nuclear Damage Claims Commission, which
will have one or more claims commissioners for a specified area. The claims commissioner shall
have all the powers of a civil court for the purpose of taking evidence on oath, enforcing
attendance of witnesses, compelling the discovery and production of documents and other
material objects.

Environment activists have described the attempt to cap the level of compensation for victims
of a nuclear accident as a violation of fundamental rights. Currently, the Atomic Energy Act,
1962, allows the government-owned Nuclear Power Corporation of India to operate nuclear
power plants in the country.

POLITICAL
Justice Srikrishna committee to look into formation of Telangana
The Union government has set-up a five-member committee headed by Justice B.N. Srikrishna
to look into the modalities of forming the separate State of Telangana. The committee has
been given time till December 31, 2010 to consult all sections of the society and submit report.
The terms of reference of the committee are:

• Examine the situation in Andhra Pradesh with reference to demand for separate
Telangana State, as well as the demand for maintaining the present status of a united
Andhra Pradesh.
• Review developments in the State since its formation and their impact on the progress
and development of different regions of the State.
• Examine the impact of recent developments in the State on different sections of
people such as women, children, students, minorities, OBCs, SC and STs.
• Consult all sections of people, especially political parties and elicit their views on a
range of solutions that would resolve the present difficult situation.
• Identify the key issues that must be addressed.
• Consult organisations of other civil societies such as industries, trade unions, farmer
organisations, women students.
• Make any other suggestion and recommendations that the committee may deem
appropriate.
• The protagonists of separate State, however, rejected the terms of reference of the
Justice Srikrishna committee and vowed to intensify their agitation. The Telangana
Rashtra Samithi (TRS), which has been spearheading the statehood agitation, struck a
belligerent note and announced that its MPs, MLAs and MLCs would resign in protest.
• Rejecting the terms of reference and the ten-month time frame given for the
committee, the TRS chief said the Centre had once again cheated the people of
Telangana by backtracking on its December 9, 2009 statement announcing initiation of
the process for formation of separate State.
Taking serious objection to the inclusion of the demand for continuation of united Andhra
Pradesh among the terms of reference, he said: “what is the point in looking into the demand
for united Andhra Pradesh when it already exists now? There is only one popular movement
going on in the State and that is for separate Telangana State.”

However, the leaders from coastal Andhra and Rayalaseema regions found comfort in the open-
ended nature of the panel’s terms. “We welcome the terms of reference, which are fairly
balanced. It will give an opportunity for a thorough assessment of the ground situation,” a
ruling Congress MP from coastal Andhra region said.

FOREIGN RELATIONS
Asian group endorses seat to India in UN Council
India's candidacy for a non-permanent seat in the Security Council has been endorsed by all 53
member States of the Asian group in the UN General Assembly. Nineteen countries, including
Nepal, Sri Lanka, Afghanistan and Bangladesh, spoke in favour of giving India a slot on the
Security Council table from January 2011.

In January 2010, India's path to a non-permanent seat got cleared after its sole competitor
from Asia, Kazakhstan, backed out of the race.

The Security Council is made up of 15 States—five permanent members who have the veto
power and 15 non-permanent members elected for a two-year term. To win, India needs two-
thirds of the General Assembly vote, which adds up to about 128 counties saying yes to India's
presence in the Council.

Running after more than a decade, India orchestrated a year-long campaign led by India’s
envoy to the UN Hardeep Singh Puri, who campaigned in New York and at multilateral events at
the United Nations.

The last time India had a seat at the Council was in 1992. In 1996, Japan won with India trailing
behind with approximately 40 votes.

Visit of Nepalese President

President of Nepal Ram Baran Yadav visited New Delhi from February 15, 2010. In an effort to
make the visit a truly successful event, India offered a 250-million dollar soft loan through EXIM
Bank and signed four major accords with the Himalayan nation.

India also offered to supply 50,000 tonne of wheat, 20,000 tonne of rice and 10,000 tonne of
yellow peas to its neighbour. An additional 2,000 tonne of wheat would be provided to Nepal, if
required.

The four accords signed by the two countries are: new air services agreement, MOU on
development of railway infrastructure at five border points, MOU on development of India-
Nepal friendship polytechnic at Hetavda in Makwanpur district of Nepal; and MOU on
establishment of India-Nepal friendship convention centre at Birgunj in Nepal.

During the delegation-level talks, the Indian Prime Minister hoped that the peace process and
drafting of the constitution would be completed in Nepal as per the schedule. Sixty-two-year-
old India-educated Yadav expressed his gratitude to the Indian leadership for assisting his
country in its economic development.

The Presidential visit came on the eve of a new constitution the Nepal government has pledged
to promulgate in May 2010. Nepal's fragile peace process that began after a decade of
insurgency is expected to be consolidated by the new statute. However, hiccups continue, with
the Maoists now saying they will agree to the rehabilitation of their guerrilla army, the People's
Liberation Army (PLA), only after the new statute came into effect.

Talks with Pakistan end without much headway

A breakthrough eluded India and Pakistan at the Foreign Secretary-level talks with New Delhi
rejecting Islamabad’s plea for the resumption of the composite dialogue process (CDP) and
handing over three fresh dossiers to the neighbouring country linking elements in Pakistan,
including JuD chief Hafiz Saeed, with terrorist activities on the Indian soil.

At the first official dialogue between the two countries after a 14-month hiatus, on February
25, 2010, India focused on terrorism emanating from the Pakistani territory, while Pakistan
raised the Kashmir, water and Baluchistan issues.

The three-hour talks, seen by diplomatic observers more as an exercise in scoring brownie
points by the two sides, ended with Foreign Secretary Nirupama Rao and her Pakistani
counterpart Salman Bashir announcing at separate press briefings that they would remain in
touch and continue endeavours to restore trust in the relationship. However, it was quite clear
from the statements of the two top diplomats that they would have to cover a lot of distance
in putting the peace process between the two neighbours back on track.

Prime Minister Manmohan Singh’s visit to Saudi Arabia

On February 26, 2010, Prime Minister Manmohan Singh became the first Indian Prime Minister in
28 years to visit Saudi Arabia. During the visit, Saudi Arabia expressed concerns over extremism
in Pakistan as New Delhi and Riyadh firmed up a strategic partnership.

Prime Minister Manmohan Singh unveiled a roadmap for comprehensive economic partnership
as he addressed captains of industry from both the countries.

Foreign Minister Prince Saud al-Faisal, who had a discussion with Singh, later spoke of the
“dangerous trend” of extremism in Pakistan and made it clear that Riyadh had nothing to do
with the Taliban. Saudi Arabia and Pakistan were among the few countries that had recognised
the Taliban regime in Afghanistan.

The Saudi minister said, “Pakistan is a friendly country. Therefore, any time one does see
dangerous trends in a friendly country, one is not only sorry but worried. And it is indeed the
duty of all political leaders in Pakistan to unite to see that extremism does not find a way to
achieve its aim in the country and this can only happen with united political leadership in
Pakistan. This, we hope, Pakistan will possibly achieve.”

India sees Saudi Arabia as a strategic partner for promoting peace, stability and economic
development. Such a partnership will bring benefits not only to the two countries but to the
region. After discussions between Mr Singh and King Abduallah, the two sides signed the Riyadh
declaration.

The Delhi Declaration, signed during the historic visit of King Abdullah to India in 2006 as the
chief guest on India's Republic Day, had charted out a new path of cooperation between India
and Saudi Arabia across a range of fields including security, bilateral trade and investment,
culture, science and technology. According to the new declaration, keeping in view the
development of relations between the two countries, and the potential for their further
growth, the two leaders decided to raise their cooperation to a strategic partnership covering
security, economic, defence and political areas.

Visit of President of Turkey

The Turkish President, Abdullah Gul, visited India on February 9, 2010 and held wide-ranging
talks with Prime Minister Manmohan Singh on all issues of mutual interest, including the
international situation. Apart from the declaration on terrorism, the two countries issued a
document on cooperation in the field of science and technology.

Days after keeping New Delhi out of the Istanbul conference on Afghanistan at the instance of
Pakistan, Turkish President Abdullah Gul sought to placate India by strongly endorsing its
position on the issue of terrorism.

Turkey is the first Organisation of Islamic Conference (OIC) member to support India’s call for
early conclusion of a comprehensive convention on international terrorism, which finds a
mention in the joint declaration on terrorism. Turkey’s position is being seen as a major
departure from that of OIC, which is not willing to exclude armed forces from the purview of
the convention.

On Afghanistan, the Turkish President praised the role being played by India in the
reconstruction plan in the embattled nation.

India, UK ink N-pact

On February 11, 2010, India signed a civil-nuclear cooperation declaration with Britain, making
it the eighth country to sign such a pact with New Delhi after India secured approval of the
Nuclear Suppliers’ Group (NSG) to undertake nuclear commerce in September, 2008. It is a
general umbrella agreement on civil-nuclear cooperation between the two countries.

India has already signed nuclear deals with France, the USA, Russia, Kazakhstan, Namibia,
Mongolia and Argentina. A nuclear agreement between India and Canada has also been
finalised. Germany and South Korea have also expressed their desire to cooperate with India in
the field of civil-nuclear energy.

The pact is expected to provide legal framework to British companies to export components
and products.

RESERVATIONS
Andhra HC quashes quota for Muslims
In a major setback to the Andhra Pradesh government’s Muslim reservation policy, the High
Court, on February 8, 2010, struck down a legislation providing four per cent quota for the
minority community in jobs and educational institutions.

A seven-member constitutional bench headed by Chief Justice A.R. Dave found fault with the
way the survey was conducted by the Backward Classes Commission, whose recommendations
had formed the basis for quota policy.

The State Assembly had passed the legislation in July 2007 providing four per cent reservation
for socially and educationally backward Muslims by including them among backward classes.
The quota was made applicable to 15 Muslim groups identified by the Andhra Pradesh Backward
Classes Commission as socially and educationally backward. These were categorised as BC-E
Group for the purpose of providing reservation.

Acting on a bunch of writ petitions filed by several individuals and organisations challenging the
legislation, the court—in a majority verdict—termed the commission’s survey as “irrational and
unscientific” and held the legislation as “unsustainable”.

TERRORISM; LAW & ORDER

Maharashtra, West Bengal ‘poor performers’ in fight against naxalites
Maharashtra and West Bengal, which have been hit by terrorist and Maoist violence, are among
the seven States that have fared poorly in modernising their police force. According to official
documents, put together by the Home Ministry, Maharashtra and West Bengal have been
labelled as “poor performing States” as they failed to use the funds sanctioned to them by the
Centre for upgrading their police force and intelligence apparatus.

The Centre earmarked Rs 1,230 crore for 2009-10 for the scheme for modernisation of the
State police forces (MPF), which is meant primarily to equip State governments to deal with
emerging challenges to internal security like terrorism and naxal violence.

The poor performing States have outdated and obsolete weapons and even the extremist-prone
police stations are often not supplied with modern weapons, and even when it is supplied
police personnel are not trained to use them. Their police communication network does not
function efficiently, they do not have enough vehicles and their forensic laboratories lack
proper infrastructure.

APPOINTED; ELECTED; Etc.

S.C. Sinha: Haryana cadre IPS officer, he has been appointed as the Director General of the
National Investigation Agency (NIA).

Salil Shetty: He has been appointed as the Secretary-General of Amnesty International. He is

the first Indian to be appointed to the job and will succeed Irene Khan in June 2010.

RESIGNED

Shyam Saran: Prime Minister’s special envoy on climate change.

DISTINGUISHED VISITORS

Abdullah Gul: President of Turkey.

Horst Koehler: President of Germany.

Salman Bashir: Foreign Secretary of Pakistan.

DIED

Fred Morrison: Inventor of the Frisbee, a flying-saucer shaped toy. He was 90.

Nanaji Deshmukh: One of the founder members of Bhartiya Jan Sangh, social worker and
former member of Lok Sabha and Rajya Sbha. He was 93.

Kakkadah Nandanath Raj: Leading economist of India who made a significant contribution in
preparation of India’s first five-year Plan (1951-56). He was 85.

Nirmal Pandey: Hindi films actor. He was 46. A graduate rom National School of Drama, he is
best known for his roles in “Bandit Queen”, “Iss raat kee subha nahin” and “Pyar Kiya to darna
kya”.
Tahir Hussain: Well-known Hindi film-maker and father of film star Amir Khan. He is known for
producing hits like “Hum hain rahi pyar ke”, “Zakhmee”, “Anamika” and “Caravan”.

EVENTS

FEBRUARY 2010
5—Twin blasts in Karachi claim 25 lives. Terrorists target a Shia religious procession and a
hospital.

7—India successfully test-fires its indigenous, nuclear-capable Agni-III missile, with a range of
over 3,000 km.

13—More than 11 people are killed in a high-intensity bomb explosion at the German bakery at
Koregaon Park, Pune. This is the first major terror strike in India after 26/11 strikes in Mumbai.

15—Maoists kill 24 jawans during s daring attack at a police camp at Simplipal in the West
Midnapore district of West Bengal.

18—Naxals gun down 11 persons in a village under Jamui district of Bihar.

21—Taliban behead a Sikh in Pakistan for refusing to pay ‘jazia’ (money to protect a non-
Muslim community).

24—Railways Budget is presented in the Lok Sabha by Union Railways Minister Mamata
Banerjee.

24—Sachin Tendulkar becomes the first cricketer in the world to hit a double century in One-
Day format (in ODI against South Africa, played in Gwalior).

26—Finance Minister Pranab Mukherjee presents his fifth Union Budget in the Lok Sabha.

26—Nine Indians are among 18 people killed in a series of attacks by militants in central Kabul,
Afghanistan.

27—Earthquake measuring 8.8 on Richter scale hits areas around Santiago, Chile, killing more
than 500 people and destroying property worth billions of dollars.

27—Prime Minister Manmohan Singh becomes the first Prime Minister in 28 years to visit Saudi
Arabia.

“Exercise Milan” was the largest naval war game hosted by India, in February 2010,
with the participation of 12 navies of the Asia-Pacific region.
It was in India that letters were taken by air for the first time in the world. The
historic event took place in Allahabad on February 18, 1911, coinciding with Kumbh
Mela in that year.

The Rail Coach Factory (RCF) at Jalandhar has developed India’s first air-conditioned,
double-decker prototype coach. The Railways has decided to introduce these coaches
on the ‘yuva’ trains.

Indian Standard Time (IST) is set in accordance with the 82.5 degree East longitude.
While India has just one time zone, Russia has 11 times zones, USA 10, Australia 9,
and Canada 6. France and its dominions have 12 time zones and UK and its overseas
territories use 8 time zones.

Under Project Saraswati, which is the first of its kind in India, ONGC proposes to dig
deep—more than half a kilometre—into aquifers along the path the ancient Saraswati
river is once believed to have taken.

The fifth global steel summit was held in Goa in February 2010 to serve as a forum
to strengthen ties between steel makers and miners.

South Africa will host the Champions League Twenty20 cricket tournament in
September 2010. In 2009 India had hosted the tournament. The tournament will
feature 12 teams, including three from 2010 IPL.

Vancouver, Canada has been named as the world’s most liveable city. Delhi and
Mumbai are placed at 113th and 117th, respectively, in the survey conducted by
Economist Intelligence Unit (EIU). Among the top ten are four Australian cities—
Sydney, Melbourne, Perth and Adelaide. Zimbabwe’s Harare is lowest ranked.

Morarji Desai holds the record of presenting the Union Budget in the Lok Sabha ten
times. Yashwant Sinha has presented seven Budgets and C.D. Deshmukh and P.
Chidambaram have done it six times.

The first 600 MW unit of the prestigious Rajiv Gandhi Thermal Power project at
Khedar, near Hisar, Haryana became operational on February 10, 2010. The coal
handling capacity of the plant, at 2,400 tonnes per hour, is the highest in India.

The per capita income of India in 2009-10 was Rs 43,749 according to the advance
estimates of Central Statistical Organistation. It was Rs 40,141 in 2008-09. After
taking inflation into account, per capita income isc estimated to grow by 5.4 per cent
at Rs 33,540 in 2009-10, against Rs 31,821 during 2008-09.

Contribution of exports to the economic expansion during 2009-10 is estimated to

fall to 18.6 per cent from 23.5 per cent in 2008-09.

CSO estimates that the population of India will go up from 1.15 billion to 1.17 billion
during 2009-10, registering an annual increase of 1.38 per cent
 POETRY
In a world that could provide for all its people, extreme poverty and hunger are the daily lot of
millions. Of the world’s more than six billion people, 2.8 billion—almost half—live on less than $2 a
day, and 1.2 billion—a fifth—live on less than $1 a day, with 44 per cent living in South Asia. In rich
countries, fewer than one child in 100 does not reach its fifth birthday, while in the poorest
countries as many as a fifth of children do not.

Over two million childhood deaths occur annually due to vaccine-preventable diseases; hunger daily
stalks nearly 800 million people in the developing world. Every day, 31,000 people die from
preventable causes, half of them hunger-related. UNICEF says that some 1,400 girls and women die
each day from causes related to child-birth, 99 per cent of them in developing countries. About 1.1
billion people still lack access to clean drinking water. More than 40 million people are living with
HIV/AIDS, and there are 14 million AIDS orphans under the age of 14.

This destitution persists even though human conditions have improved more in the past century
than in the rest of history—global wealth, global connections, and technological capabilities have
never been greater. But the distribution of these global gains is extraordinarily unequal. The
average income in the richest 20 countries is 37 times the average in the poorest 20—a gap that
has doubled in the past 40 years.

The global economic crisis has wiped out developing Asia’s recent gains in poverty eradication as
the meltdown is expected to have driven more than 21 million people in the region into poverty. A
joint report by the United Nations and the Asian Development Bank shows that the global economic
slowdown slackened trade, slashed export and tourism receipts and raised unemployment levels.
This makes it difficult for the region to achieve its Millennium Development Goals (MDGs), which
range from halving extreme poverty to halting the spread of HIV and AIDS and providing universal
primary education, all by the target date of 2015. The latest data suggests that the Millennium
Summit target will be reached only in 2030.

Understanding & Responding to Poverty

The right to development and the right to a life free from poverty are basic human rights. The UN
Charter, the Universal Declaration of Human Rights, the World Summit on Social Development and
many other multilateral declarations and conferences have recognized and reconfirmed economic,
social, political, civil, and cultural rights with the goal of eradicating poverty and its consequences.
Among these rights are an adequate standard of living, food, housing, education, health, work,
social security and a share in the benefits of social progress.

Traditionally, poverty has been defined in terms of shortfalls of consumption or income. Income
poverty lines are set against the cost of a basic diet for a group and/or the combination of dietary
needs and a few non-food essential items. One commonly used income poverty definition is
subsisting on US$1 per day or less.
UNDP addresses poverty as a denial of human rights. Good health, adequate nutrition, literacy and
employment are not favours or acts of charity to be bestowed on the poor by governments and
international agencies. They are human rights, as valid today as they were 50 years ago when the
Universal Declaration of Human Rights was adopted. UNDP defines poverty from a sustainable
human development perspective. Poverty is the denial of various choices and opportunities basic to
human development. These include the ability to lead a long, creative and healthy life, to acquire
knowledge, to have freedom, dignity, self-respect and respect for others, and to have access to the
resources needed for a decent standard of living.

Nature and Determinants of Poverty

Under-nutrition and hunger are the hallmarks of poverty. Poverty goes beyond lack of income. It is
multi-dimensional, encompassing economic, social and governance perspectives. Economically, the
poor are not only deprived of income and resources, but of opportunities. Markets and jobs are
often difficult to access, because of low capabilities and geographical and social exclusion. Limited
education affects their ability to get jobs and to access information that could improve the quality of
their lives. Poor health, due to inadequate nutrition and health services, further limits their
prospects for work and from realizing their mental and physical potential. This fragile position is
exacerbated by insecurity.

Not surprisingly, the poor generally fare the worst in terms of social indicators, such as illiteracy,
malnutrition, ill health (incidence of communicable diseases such as tuberculosis and HIV/AIDS),
and mortality and morbidity rates. Among this group, women and girls are often the most severely
disadvantaged, as evidenced by low school enrolment rates and higher incidence of maternal
mortality rates.

Strategies for poverty reduction

The approach to reducing poverty has evolved over the past 50 years in response to deepening
understanding of the complexity of development. In the 1950s and 1960s, many viewed large
investments in physical capital and infrastructure as the primary means of development. In the
1970s, awareness grew that physical capital was not enough, and that at least as important were
health and education. World Development Report, 1980, articulated this understanding and argued
that improvements in health and education were important, not only in their own right but also to
promote growth in the incomes of poor people.

The 1980s saw another shift of emphasis following the debt crisis and global recession and the
contrasting experiences of East Asia and Latin America, South Asia, and Sub-Saharan Africa.
Emphasis was placed on improving economic management and allowing greater play for market
forces. World Development Report, 1990, proposed a two-part strategy: promoting labour-intensive
growth through economic openness and investment in infrastructure and providing basic services to
poor people in health and education. In the 1990s, governance and institutions moved towards
centre stage—as did issues of vulnerability at the local and national levels.

Actions at the country level

The lives of poor people are most affected by actions at the country-level. Countries need to get on
a path of sustainable, pro-poor growth that provides opportunities for all, a voice in decision-making
and protection from shocks.

The World Development Report, 2000, proposed a strategy for attacking poverty in three ways:
promoting opportunity, facilitating empowerment, and enhancing security.

Opportunity: Expanding economic opportunity for poor people by stimulating economic growth,
making markets work better for poor people, and working for their inclusion, particularly by building
up their assets, such as land and education.
Although economic growth is crucial for generating opportunity, poverty remains intractable despite
economic growth in many countries, partly because of income inequality within countries. In
societies with high inequality, greater equity is particularly important for rapid progress in reducing
poverty. This requires action by the State to support the build-up of human, land, and infrastructure
assets that poor people own or to which they have access. Investments in the physical and financial
assets of poor people are, thus, necessary—adequate schooling and skill development, secured
nutrition, preventive health care, rural infrastructure and credit.

And, there is a two-way relationship between poverty and growth. Rapid growth is a necessary—but
not a sufficient—condition for poverty reduction. What is too seldom mentioned, however, is that
persistent poverty and inequality reduce growth rates and undermine economic stability and
security. Vigorous and comprehensive investments in reducing poverty, in other words, is a
necessary component of long-term growth.
In addition to achieving faster growth rates, it is essential that economic growth be broad-based to
maximize its impact on reducing poverty. Economic growth also needs to be labour absorbing,
providing jobs and economic opportunities for self-employment—a challenging task, because
industries need to be internationally competitive as well. This requires diversified industrial and
service sectors and the networking of international and local enterprises of different sizes, to
enhance synergism between different economic segments.

Market reforms and the expanding to international markets can be central in expanding
opportunities for poor people, but reforms need to reflect local institutional and structural
conditions. And mechanisms need to be in place to create new opportunities and compensate the
potential losers in transitions.
Policies that promote low inflation, realistic and stable exchange rates, reasonable fiscal deficits,
effective integration into the global economy, and private sector activity, are all needed.

Empowerment: Strengthening the ability of poor people to shape decisions that affect their lives
and removing discrimination based on gender, race, ethnicity, and social status.

The potential for economic growth and poverty reduction is heavily influenced by State and social
institutions. Action to improve the functioning of State and social institutions improves both growth
and equity, by reducing bureaucratic and social constraints to economic action and upward mobility.
The importance of good governance for economic growth and poverty reduction is now generally
accepted. Participatory democratic systems and the rule of law are essential to ensure that leaders
are held accountable to the people and that open and transparent systems exist for the
management of public resources.

Good governance also has a direct bearing on poverty, for poor people are often direct victims of
bad governance. Due to their lack of representation, they tend to be left out of public expenditure
programmes, especially those related to access to productive assets and the delivery of social
services.

Social structures and institutions form the framework for economic and political relations and shape
many of the dynamics that create and sustain poverty—or alleviate it. Social structures that are
exclusionary and inequitable, such as class stratification or gender divisions, are major obstacles to
the upward mobility of poor people. Governments can help by fostering debate over exclusionary
practices or areas of stigma and by supporting the engagement and participation of groups
representing the socially excluded. Groups facing active discrimination can be helped by selective
affirmative action policies. Other actions could include removing ethnic, racial, and gender bias in
legislation and the operation of legal systems and encouraging the representation and voice of
women and disadvantaged ethnic and racial groups in community and national organizations.
The promotion of gender equality is expected to contribute to the achievement of several goals at
the same time. Accordingly, a general policy framework is required to reduce the marginalization of
women, helping them participate effectively in economic, political, and social life and increasing
their involvement in the development of policies that affect their lives. Achieving this requires
conscious allocations of public resources in favour of women and of production areas where women
are most concentrated. In short: gender-sensitive budgeting.

Security: The poor are often the most severely affected by adverse shocks of macro and micro-
economic origin, so mechanisms to reduce the incidence of shocks, and help the poor cope with
them are essential. These mechanisms should guarantee minimum consumption levels and access
to basic services, protect investments in human capital during crises, and reduce the risk exposure
faced by the poor in their productive choices. Such mechanisms range from making fiscal policy
counter-cyclical and improving management of natural disaster risks, to instruments that help the
poor cope with illness, crop failure, unemployment and old age. These include subsidies targeted to
the poor, public works and “food for work” programmes, sustainable, well-designed pension,
unemployment and social assistance programmes, and severance payments to those laid off during
civil service retrenchment or public enterprise reform.

Special measures are also needed to ensure that spending on programmes important to poor people
—social programmes and targeted transfers—does not fall during a recession, especially relative to
the rising need.

To manage the risk of financial and terms of trade shocks, sound macro-economic policy and robust
financial systems are fundamental. But they have to be complemented by prudent management of
the opening of the capital account, to reduce the risk of volatile short-run flows.

Thus, reducing poverty calls for a three-pronged approach: promoting pro-poor growth, securing
social development, and ensuring good governance. The three are inter-related and complementary.
Pro-poor growth stimulates employment and other economic opportunities, and generates
revenues, which can be directed, through good governance, at providing services needed by the
poor and vulnerable groups.

Globalization and Poverty Reduction

Appropriately structured and sequenced, trade liberalization can be an engine of development and
poverty reduction. Countries that participate in the global economy, show higher economic growth
than those that maintain closed trade regimes. This is because of incentives created by export
opportunities and import competition, and the doors it opens for productive domestic-foreign
partnerships.
Increased openness to trade creates opportunities for new investments and jobs, and promotes
more efficient use of resources and higher productivity. The liberalization of capital flows permits
greater access to the external resources, needed to finance such investments, and foreign direct
investment can also encourage the transfer of technology, managerial expertise and skills. But,
relatively few developing countries have benefited from trade liberalisation.

The lesson? If trade is to contribute all it can to development and poverty reduction, the poorest
countries must be able to participate more fully in its benefits. For these countries, agricultural
trade liberalization is critical. They depend far more heavily than the better-off developing countries
on agriculture for their GDP and exports.

Although developing countries have been constantly lectured, pushed and pressured to open their
markets, reduce tariffs and remove subsidies by developed countries, yet, markets in developed
countries and in the US are increasingly closed to them, as new and additional subsidies and
protectionist measures are being implemented. Increasingly, these are for products that are critical
to the majority of the population in poor countries.

For example, Africa accounts for less than 1% of world exports. Both the European Union and the
US have promised action to tackle marginalisation. What have they done? Continued business as
usual, including the business of damaging African agriculture through farm subsidies.

The challenge for developing countries is to enact domestic policies that attract more foreign direct
investments of a relatively long term and stable nature, as well as adopting structural reforms to
enable domestic adjustment when necessary.

Aid Effectiveness and Debt Relief

Donor countries could strengthen developing countries’ ability to pursue poverty reduction by
increasing aid flows to countries with a sound policy environment, supportive of poverty reduction.

Aid should be delivered in ways that ensure greater ownership by recipient countries and effectively
helps poor countries help themselves.

In fact, the “rethinking development” has led the World Bank, in partnership with the IMF, to begin
intensive work on a new, more sharply focused approach to supporting member countries’ poverty
reduction strategies. Indeed, it has already started to work with selected countries on “Poverty
Reduction Strategy Papers” (PRSPs).

The PRSP emphasizes on two fundamental changes. First, poverty reduction strategies will no longer
be drafted in Washington by the IMF and World Bank and presented to national authorities as a fait
accompli. Rather, concessional support will be based on the strategy developed by national
authorities, with the broad participation of local civil society, especially the voices of the poor.
Second, the PRSP forces much closer co-operation between the two institutions, which should lead,
at least, to better analysis. Extraordinary as it seems, there has in the past been little connection
between the IMF’s macroeconomic analysis and the World Bank’s work on poverty. The strategy will
benefit from the intellectual contributions of all providers of external support—and will provide a
single, transparent direction for the future.

Supporting country-owned poverty reduction strategies will, hopefully, go some way to achieving
greater poverty reduction than in the past, but will not be sufficient if more aid is not made
available.

The real value of aid to developing countries is down about 8 per cent in the past decade. Recent
studies show that achieving the MDGs would require doubling present ODA flows.

Security and Conflict

The incidence of poverty can worsen substantially in conflict situations and may not be reversed for
a prolonged period after the conflict has ended. The international community should seek to stem
armed conflict—which affects poor people the most—by taking measures to reduce the international
arms trade, promote peace, and support physical and social reconstruction after conflicts ends.
Donors also need to avoid any gap between the provision of humanitarian and reconstruction
assistance, so that both contribute in a mutually reinforcing way to an early restoration of durable
peace. This calls for substantial technical and financial assistance for demilitarization,
demobilization, and rehabilitation, and the restoration of domestic institutional capacity. The
industrial countries further need to ensure greater coherence and transparency in their own policies
on arms sales.

Just as conflict can lead to poverty, the scourge of poverty can lead to unrest, rebellion and
terrorism The forces unleashed will not recognise national borders. That is why poverty should be at
the heart of the international security agenda.

The lack of consensus on poverty alleviation has itself proved unhelpful by pulling countries in
different directions. Most of the large bilateral government donors tread a middle path. They
increasingly downplay governance issues whilst promoting the concept of inclusive growth with pro-
poor institutional capacity building and the provision of social safety nets to protect the poorest. The
L’Aquila Food Security Initiative announced at the 2009 G8 summit in Italy suggests a new priority
of investment in agriculture.

There is justifiable concern that these attempts to fine-tune solutions to global poverty may be
overwhelmed by the pace of events. The failure of politicians to respond to signals of climate and
economic breakdown has almost certainly provoked an inexorable rise in global poverty with
unpredictable consequences. A fundamental reordering of priorities is the only available remedy for
the poor. It may also prove to be the critical first step on the road to a sustainable future for us all.
 Un Millennium Development Goals for 2015

• Eradicate extreme poverty and hunger. Halve the proportion of people with less than one
dollar a day. Halve the proportion of people who suffer from hunger.
• Achieve universal primary education. Ensure that boys and girls alike complete primary
schooling.
• Promote gender equality and empower women. Eliminate gender disparity at all levels of
education. Reduce child mortality. Reduce by two thirds the under-five mortality rate.
• Improve maternal health. Reduce by three quarters the maternal mortality ratio.
• Combat HIV/AIDS, malaria and other diseases. Reverse the spread of HIV/AIDS.
• Ensure environmental sustainability. Integrate sustainable development into country
policies and reverse loss of environmental resources. Halve the proportion of people without
access to potable water. Significantly improve the lives of at least 100 million slum
dwellers.

Develop a global partnership for development. Raise official development assistance

Budget 2010 Essay

On February 26, 2010, Finance Minister Pranab Mukherjee presented a Budget that broadly focused
on fiscal stabilization. The Union Budget was presented at a time when the Indian economy was on
the path of revival and almost all demand indicators had turned significantly positive. Investment
and consumption demand was also on a revival mode. The buoyancy in the manufacturing sector
and uptick in import and export were also working well for economic growth prospects.

In the current economic scenario, what was required from the Budget was a further push for
consumption and investment. The Budget announcements have tried to do just that.

The continued thrust on agriculture, infrastructure and rural development will unlock much of the
economic growth potential in the medium-term. Along with maintaining the focus on broad based
growth, the Budget has also addressed concerns on the fiscal deficit front.

Given that overall demand in the economy is still firming up, it is unlikely that the 2% hike in excise
duty will be passed on, thus mitigating any immediate inflationary concerns. Also, the focus on
improving food security should aid in containing food price inflation. It remains to be seen, however,
how the increase in excise duty for petrol and diesel pans out in terms of its impact on inflation.

The corporate sector was slapped with a higher minimum alternate tax (MAT) at 18 per cent, in
comparison to 15 per cent earlier. However, the reduction in surcharge by 2.5 percentage points to
7.5 per cent will offset much of the higher MAT impact.
On the reforms' front, Mr Mukherjee accepted the 13th Finance Commission’s recommendations on
the suggested tax-sharing formula with States, but decided to wait for a status paper to study the
implications of the Commission’s proposal on capping the government’s combined debt at 68 per
cent of GDP. He also deferred announcing the roadmap for the introduction of a goods and services
tax (GST) to April 2011, bas also the implementation of the Direct Taxes Code.

On the crucial question of implementing oil pricing reforms, as suggested by the Kirit Parikh
Committee report, the Finance Minister put the ball in his colleague Murli Deora’s court, saying the
petroleum minister would take an appropriate decision in due course.

In the financial sector, the Finance Minister proposed that private players would be considered for
some additional licenses for banks and non-banking finance companies, subject to the fulfilment of
the Reserve Bank of India’s eligibility criteria. He also allocated over Rs 16,500 crore to ensure that
public sector banks are able to attain a minimum eight per cent Tier-I capital by March 2011.

On the expenditure side, the Finance Minister provided generous allocations for the rural
development and social sectors. Total plan expenditure is slated to go up 18 per cent to Rs
3.73 lakh crore, while the Centre’s budgetary support would go up by a higher margin of 22 per
cent to Rs 2.8 lakh crore. Agriculture, too, received special attention with a four-pronged strategy
that focused on agricultural production, reduction in wastage, credit support to farmers and a thrust
on the food processing sector.

Direct Taxes

• Those falling under the tax slab of up to Rs 1.6 lakh now do not have to pay any tax. From
Rs 1.6 lakh to Rs 5 lakh the tax rate is at 10 per cent; Rs 5 lakh to Rs 8 lakh at 20 per
cent; and income above Rs 8 lakh will be taxed at 30 per cent.
• To promote savings, deduction of an additional amount of Rs 20,000 has been allowed,
over and above the existing limit of Rs 1 lakh on tax savings, for investment in long-term
infrastructure bonds notified by the Central government.
• Apart from contributions to health insurance schemes currently allowed as a deduction
under the Income-tax Act, contributions to the Central Government Health Scheme will also
be allowed as a deduction.
• The current surcharge of 10 per cent on domestic companies has been reduced to 7.5 per
cent. Minimum Alternate Tax (MAT) has been increased from 15 per cent to 18 per cent of
book profits.
• To encourage R&D, the weighted deduction on expenditure incurred on in-house R&D has
been enhanced from 150 per cent to 200 per cent.
• Limits for turnover over which accounts need to be audited have been enhanced to Rs 60
lakh for businesses and to Rs 15 lakh for professions.
• Limit of turnover for the purpose of presumptive taxation of small businesses has been
enhanced to Rs 60 lakh.

Indirect Taxes

• Rate reduction in central excise duties has been partially rolled back and the standard rate
on all non-petroleum products enhanced from 8 per cent to 10 per cent ad valorem.
• Excise duty on large cars, multi-utility vehicles and sports-utility vehicles has been
increased from 20 per cent to 22 per cent.
• The basic duty of 5 per cent on crude petroleum, 7.5 per cent on diesel and petrol, and 10
per cent on other refined products has been restored. Central excise duty on petrol and
diesel has been enhanced by Re 1 per litre each.
 • Excise duty on all non-smoking tobacco such as scented tobacco, snuff, chewing tobacco
etc has been enhanced.
• Certain services, hitherto untaxed, are being brought within the purview of Service tax,
which include health checkups, services by electricity exchanges, services of sponsorship of
sports, services of promoting of a "brand" of goods, services and events, amongst others.
However accredited news agencies which provide news feed online and meet certain criteria
have been exempted from service tax.
• Refrigeration units required for the manufacture of refrigerated vans or trucks will be fully
exempt from customs duty. Specified equipment for preservation, storage and processing
of agriculture and related sectors will be exempt from Central excise.
• To build the corpus of a National Clean Energy Fund, a clean energy cess on coal produced
in India, at a nominal rate of Rs 50 per tonne, will be levied. This cess will also apply to
imported coal.
• Monorail projects for urban transport will be granted project import status and be charged a
concessional basic duty of 5 per cent.

Income-tax management simplified

In 2010-11, the salaried can look forward to easy tax filings. The new Saral-II form, which will
only have two pages, will ease tax filing pains. It has been decided to phase-out the current,
cumbersome form, 2F.

Tax-payers can also look forward to less interaction with the tax authorities, thanks to the
computerisation and modernisation of the Income Tax Department. The Centralised Processing
Centre at Bengaluru is fully functional and is currently processing around 20,000 returns a day.
Tax experts say that such systems will make the audits more computerised and free from the
control of any individual assessing officer.

The government has also introduced a pilot project, called ‘Sevottam’, to provide single window
system for registration of all applications, including those for redressal of grievances, as well as
paper returns. Currently, the scheme is on in Pune, Kochi and Chandigarh. Four more centres will
be added in 2010-11.

Fiscal Consolidation Plan

In line with the recommendations of the 13th Finance Commission, Mr Pranab Mukherjee
presented a roadmap for fiscal consolidation and set the fiscal deficit target at 5.5 per cent of
the gross domestic product (GDP) for 2010-11. He also moved towards a transparent fiscal
accounting system by including expenses due to oil and fertilizer subsidies as liabilities (of 2008-09)
and cash subsidy in 2009-10, and stated the deficit for 2009-10 to be at 6.9 per cent of GDP,
as against a comparable figure of 7.8 per cent of GDP in 2008-09. The target of 5.5 per cent for
2009-10 includes expenses on account of oil and fertilizer subsidies.

The actual net borrowing of the government in 2010-11 would be Rs 3,45,010 crore. The
revenue deficit is also expected to show significant decline to 4 per cent of GDP from 5.3 per
cent in 2009-10. The fiscal consolidation plan would be met through the availability of disinvestment
proceeds and an overall reform in the expenditure management of the government including
subsidies.

For 2009-10, the fiscal deficit was revised downwards to 6.7 per cent, from a projected target
of 6.8 per cent. The fiscal deficit for 2009-10 is the widest deficit in the last two decades. In
absolute terms, however, the fiscal deficit for 2009-10 was revised up by 3.25 per cent to Rs
4,14,041 crore from a target set at Rs 4,00,996 crore. For 2010-11, the fiscal deficit in absolute
terms is estimated to be at Rs 3,81,408 crore.
Such an increase in fiscal deficit in absolute terms is on account of lower revenue receipts in the
current fiscal, even as expenditure more or less met the targets. In proportion to GDP, the
revenue deficit increased to 5.3 per cent, up from an earlier projection of 4.8 per cent.

With the government’s focus shifting to fiscal consolidation and tightening expenditure, it expects
to spend 66 per cent of total expenditure on non-plan activities during 2010-11, compared
to 70 per cent in 2009-10. The main reason for this is that the burden on account of Sixth Pay
Commission report is off its back now.

The total government expenditure during 2010-11 would be Rs 11,08,749 crore, of which
non-plan would be Rs 735,657 crore. Despite the austerity drive, the non-plan expenditure
during the current year rose 15 per cent to Rs 706,371.23 crore. This was mainly on account of Rs
19,749 crore increase in subsidy payout, of which petroleum subsidy alone accounted for Rs 12,000
crore.

The total Central Plan outlay is Rs 524,484 crore during 2010-11, as against Rs 425,590 crore in
the revised estimate for 2009-10.

The government has proposed a shift from bonds to cash for compensating the oil and fertiliser
companies. The move will help in improving the cash flows of companies in both these sectors.
However, the government allocated a lower subsidy of Rs 3,108 crore on petroleum products,
primarily domestic LPG and kerosene, for 2010-11, compared to revised estimates of Rs 14,954
crore in 2009-10 over and above the grant of Rs 10,306 crore through bonds.

Infrastructure
Mr Pranab Mukherjee has allocated a large chunk of the total plan outlay of Rs 3,73,000 crore
for 2010-11 to infrastructure sectors, including road, power, railway, ports and airports. To
build the corpus of the National Clean Energy Fund set up earlier, he announced a cess on coal
production at a nominal Rs 50 per tonne. This will be levied on imported coal, too. Around 75 per
cent of the power generated in the country is coal-based.

In another step at cutting domestic carbon emissions, the government increased the plan outlay
for the Renewable Energy Ministry by 61 per cent to Rs 1,000 crore for 2010-11. The Ministry is
implementing the ambitious National Solar Mission, aimed at setting up 20,000 MW of solar
power capacity by 2020.

Budget 2010 has also provided a concessional customs duty of five per cent for solar power
generating equipment.

Allocations for roads and railways together were over 36,600 crore, an increase of Rs 3,300
crore. The government has targeted construction of national highways at the pace of 20 km a day.

Disbursements of the India Infrastructure Finance Company, set up to provide long-term

financial assistance, would touch Rs 9,000 crore by March 2010 and reach around Rs 20,000 crore
by March 2011.

Rural Infrastructure
Bharat Nirman, the six-fold action plan for rural infrastructure development, charted out in 2006
by the then UPA government, will enter the second year of its second phase with Rs 48,000 crore,
with the bulk of the increase going to rural electrification, housing and roads.

The umbrella scheme, which has a clutch of six different programmes under it, had entered the
second phase in 2009 with an allocation of Rs 40,900 crore. In 2010 it has gone up to Rs 48,000
crore.
The main areas covered under it are roads, houses, drinking water, irrigation, telephony
and electricity in rural areas. The budget for the first phase was Rs 1,74,000 crore. But in the
second phase, the road component alone is expected to cost Rs 1,32,000 crore, as per the Budget
document.

The Pradhan Mantri Grameen Sadak Yojana (PMGSY), which targets to connect villages with a
population of 1,000, has got an allocation of Rs 9,995 crore as against 2009-10 revised allocation of
Rs 9,475 crore. The Yojana was launched on December 25, 2000 as a 100 per cent centrally
sponsored scheme. But today it meets its expenses also through loans from the Asian Development
Bank and World Bank.

In addition, an allocation of Rs 10,000 crore has been made as loan for PMGSY through the RIDF
window of NABARD.

The PMGSY was to connect 66,000 habitations in the previous four years. The target now is to
reach 1,67,000 habitations at a cost of Rs 1,32,000 crore by 2012.

The Bharat Nirman component on housing, called Indira Awas Yojana, which was to build 6
million dwellings in the four years ending 2009, now has a target of 12 million houses by 2014.
The funds for this scheme implemented by the rural development ministry have gone up from Rs
7,918 crore in 2009-10 to Rs 8,996 crore in 2010-11.

About Rs 5,000 crore for this scheme will be provided by the National Investment Fund.

The funds for rural electrification have gone up in 2010-11 with fund transfers to Rajiv Gandhi
Grameen Vidyutikaran Yojana going up from Rs 3,100 crore to Rs 5,000 crore. The entire
funding for the scheme is coming from the National Investment Fund.

The scheme was started with the aim of providing power connections to 100,000 villages and
release electricity connections to 23 million rural BPL households in five years.

The National Rural Employment Guarantee Scheme (NREGS) will continue with its mammoth
agenda of providing 100 days of work in the country’s rural areas, drawing its oxygen mainly from
the National Investment Fund (NIF). A major part of the scheme’s allocation will come from the NIF
for the second consecutive year. NIF draws money from disinvestment of government stake in
public sector undertakings.

The allocation for NREGS has gone up marginally from Rs 39,100 crore in 2009-10 to Rs 40,100
crore in 2010-11. But the share of NIF component in NREGS funding has gone up from Rs 11,730
crore in 2009-10 (when the total allocation was Rs 39,100 crore) to Rs 18,768 crore in 2010-11
(against the total allocation of Rs 40,100 crore). Therefore, the government expenditure on NREGP
has been declining.

The NIF proceeds for 2009-10, estimated at Rs 25,000 crore, will come on account of disinvestment
of government stake in NHPC Ltd, NTPC Ltd, Oil India Ltd, Rural Electrification Corporation Ltd and
NMDC Ltd. The NIF, which was constituted in 2009, is expected to part-fund social sector schemes
till 2011-12.

The increased funding of Rs 1,000 crore will barely be enough to create the over 300,000 Panchayat
Bhawans or Rajiv Gandhi Seva Kendras proposed by the Rural Development Ministry in every
panchayat in the country, or to fund NGOs in these panchayats to help run the scheme.

Meanwhile, this Budget has extended the Rashtriya Swasthya Bima Yojana (RSBY) benefits to all
NREGS beneficiaries who had worked for more than 15 days during the preceding financial year.

The insurance coverage would be through the Rs 30 per year smart cards which would provide the
entire family health insurance cover worth Rs 30,000.

Agriculture Sector
The agriculture sector is in for a major push with an unprecedented 21.6 per cent hike in the central
plan allocation to address the supply side constrains that have led to high food inflation.

Besides measures to boost production, stress has been laid on opening up of retail trade to reduce
the wide differences between the farm gate, wholesale and retail prices. Tax sops to infrastructure
have also been proposed to facilitate storage and safe handling of perishable foods until the retail
points.

A four-pronged strategy has been mooted in the Budget to spur growth in farm production. It
involves measures to raise agricultural production; reduce wastages; strengthen credit support to
farmers; and lend a thrust to the food processing sector for value addition of farm produce.

The Central Plan allocation for 2010-11 for the agriculture and allied sectors has been raised by
Rs 2,185 crore to Rs 12,185 crore. It was Rs 10,123 crore in 2009-10 (revised estimates).

The food supplies are proposed to be augmented by extending the Green Revolution to the
eastern States of Bihar, Chhattisgarh, Jharkhand, West Bengal and Orissa and eastern-Uttar
Pradesh. Rs 400 crore have been set apart for this purpose.

About 60,000 villages are proposed to be selected for devoting exclusive attention to producing
more pulses and oilseeds in the dry land areas through better water conservation measures. A
sum of Rs 300 crore has been fixed for this scheme.

The 2010-11 target for total credit flow to the farm sector has been raised to Rs 3,75,000 crore
from Rs 3,25,000 crore in 2009-10, to improve farmers’ access to credit. Besides, the debt waiver
and debt relief scheme has been liberalized further by giving the farmers six more months, until
June 30, 2010, for repaying the outstanding loans to get a concession on the interest. The interest
subvention for the farmers who repay their debts in time has been stepped up from 1 per cent
earlier to 2 per cent.

To lend impetus to the food processing sector, five more mega food parks are planned to be set
up. These will be in addition to the 10 already being put up for value-addition of farm produce.

Service tax concessions, including exemptions, have been proposed for seed certification and
transportation of cereals and pulses.

To sustain Green Revolution areas through conservation farming, which involves attention to soil
health, water conservation and preservation of biodiversity, Rs 200 crore has been allocated for
launching this climate-resilient agriculture initiative.

Public Debt
The biggest commitment of the government is to reduce public debt. The combined debt of the
Centre and the States will be capped at 68 per cent of the gross domestic product (GDP) by
2014-15, as recommended by the Thirteenth Finance Commission. This is the first time the
government will target an explicit reduction in its domestic public debt as a proportion of GDP.

Public Health
Mr Mukherjee raised the healthcare allocation for 2010-11, initiated mapping the country’s health
profile and gave some tax relief on imported medical equipment. In an announcement of far-
reaching importance for public health in India, he said a health profile of all districts will be
prepared in 2010. The findings will be fed into major public health initiatives, especially the National
Rural Health Mission (NRHM), a flagship programme of the United Progressive Alliance (UPA)
government.

In keeping with its promise of increasing the spending on this sector, Finance Minister proposed to
increase the plan allocation for the ministry of health and family welfare from Rs 20,217 crore in
2009-10 (revised estimates) to Rs 23,350 crore in 2010-11, a rise of 15.5 per cent.

The overall allocation for public health has been increased from Rs 1,928 crore in 2009-10
(revised estimates) to Rs 3,181 crore in 2010-11. The NRHM allocation has been raised from Rs
12,096 crore to Rs 13,910 crore. But, that for medical education, training and research has come
down slightly from Rs 2,699 crore in 2009-10 (revised) to Rs 2,678 crore in 2010-11.

Given the rapid increase in diabetes and cardiovascular diseases in India, the allocation for
programmes related to control and prevention of these diseases have been raised manifold—from
Rs 17 crore in 2009-10 to Rs 90 crore in 2010-11.

The minister has also sought to bring some relief for state-of-the-art medical equipment. He
announced a uniform, concessional basic duty of five per cent and CVD (countervailing duty) of four
per cent, with full exemption from special additional duty on all medical equipment.

Environment
With India committing itself to a goal of 20-25 per cent cuts in its carbon emission intensity by
2020, Finance Minister Pranab Mukherjee announced a slew of measures to reduce dependence on
fossil fuels in the long run and promote clean energy technology, as well as check pollution.

A National Clean Energy Fund for funding research and innovative projects would be established.
Finance Minister also proposed a clean energy cess on coal produced in India, as well as on
imported coal. ‘Polluter pays’ will remain the basic criterion, he said in his speech.

In addition, Mr Mukherjee announced a series of customs and excise duty cuts for photovoltaic and
solar thermal power units, in keeping with the government’s resolve to implement the National
Solar Mission.

Central budgetary allocation for the ministry of environment and forests has risen by about
10 per cent, from Rs 2,129 crore in 2009-10 to Rs 2,351 crore in 2010-11. However, the allocation
for Project Tiger, a key programme to save the rapidly-dwindling tiger population in the country,
has been cut by about Rs 30 crore.

With climate change on top of the government’s list of priorities, pollution control has seen a
substantial increase in allocation. The allocation for control of river water pollution programmes has
gone up.

States to get 32% of gross tax receipts

The Union government has used the Thirteenth Finance Commission’s devolution formula to transfer
32 per cent of its budgeted gross tax receipts for 2010-11 to the States, as against 30.5 per cent
earlier.

According to the new devolution formula, 35 per cent weight will be given to area and population,
fiscal discipline has 17.5 per cent weight with the remaining 47.5 per cent has been given to fiscal
capacity distance.
In line with the revised formula, the net proceeds of union taxes and duties is budgeted at Rs
2,08,997 crore during 2010-11, with the Centre’s gross total revenue budgeted to rise by 17.94 per
cent to Rs 7,46,651 crore during 2010-11, compared with Rs 6,33,095 crore in the revised
estimates for 2009-10. The receipts in 2009-10 would, however, be 1.25 per cent lower than the
budget estimates of Rs 6,41,079 crore with corporation tax, excise and service collections likely to
be lower than what was expected in July 2009.

While Mr Mukherjee has estimated a revenue loss of Rs 26,000 crore on account of income tax
concessions, he has budgeted for a net revenue gain of Rs 46,500 crore from indirect taxes.

UID Project
The Nandan Nilekani-headed Unique Identification Authority of India (UIDAI) has been allotted an
outlay of Rs 1,900 crore for 2010-11, significantly up from Rs 31 crore the authority spent in 2009-
10. The UIDAI was set up in 2009 with the intent of providing unique identity (UID) numbers to 1.2
billion people of the country.

The authority would provide an effective platform for financial inclusion and targeted subsidy
payments. The first set of UIDs is expected to be issued between August 2010 and February 2011.

The UIDAI has also been roped in by other ministries to manage their resources. The human
resource development ministry, for instance, will take the authority’s help to introduce educational
reforms by using UID to bring the over 8 million ‘out of school’ children into the education system.

UIDAI plans to issue 600 million UIDs over the next five years but the project, first to its kind, faces
several challenges. The first hurdle is the collection of data on everyone. The project will collect data
such as iris profiles, biometric prints of 10 fingers, gender, mother and father’s names and address,
among other details.

Package for Women

The outlay for Women and Child Development has been increased by almost 50 per cent. A mission
for empowerment of women is being set up. The ICDS platform is being expanded for effective
implementation of the Rajiv Gandhi Scheme for Adolescent Girls. A Mahila Kisan Sashaktikaran
Pariyojana to meet the needs of women farmers is being launched, with Rs100 crore.

Energising India through Solar Power

The plan outlay of the Ministry of New and Renewable Energy has been increased by 61 per cent,
from Rs 620 crore in 2009-10 to Rs 1,000 crore. The government envisages establishing India as a
global leader in solar energy, targeting 20,000 MW of solar power by 2022.

Helping the Disabled

An Indian Sign Language Research and Training Centre for the benefit of the hearing-impaired is
being set up. Also, District Disability Rehabilitation Centres are being set up in 50 additional
districts, along with two composite regional centres for persons with disabilities.

Coal Regulatory Authority

A Coal Regulatory Authority is to be established. This will facilitate resolution of issues like economic
pricing of coal and benchmarking of standards of performance. It is also proposed to introduce a
competitive bidding process for allocating coal blocks for captive mining.

New Action on Internal Security

The Planning Commission will prepare an integrated action plan for areas hit by Left-wing
extremism. Adequate funds will be made available for the plan. To build confidence, 2,000 youth
will be appointed as constables from J&K in five Central paramilitary forces in 2010.
Special Golden Jubilee Package for Goa
Rs 200 crore has been provided as a Special Golden Jubilee package for Goa, to preserve its natural
resources and increase its green cover through sustainable forestry.

Making Ganga cleaner

The allocation for National Ganga River Basin Authority has been doubled to Rs 500 crore.
‘Mission Clean Ganga 2020’ aims to ensure that no untreated municipal sewage or industrial effluent
is discharged into the river.

Alternate Port for West Bengal

Recognising the need for developing an alternate port facility in West Bengal, it is proposed to
develop a project at Sagar.

Skill Development Plans

The Prime Minister’s Council on National Skill Development has the mission to create 50 crore
skilled people by 2022. The government proposes to launch an extensive skill development
programme in the textile and garment sector by leveraging the strength of existing institutions and
instruments of the Textile Ministry. The ministry plans to train 30 lakh persons over five years.

Defence Outlay Hiked

The Defence budget for 2010-11 is pegged at Rs 147,344 crore, up 8 per cent from the revised
estimates of Rs 136,264 crore and four per cent from the budget estimates of Rs 141,703 crore in
2009-10. The armed forces will get around Rs 11,000 crore extra in 2010-11.

Hits and Misses of Union Budget ‘10

Hits

• Fiscal deficit contained at 5.5%.

• Disinvesment target increased from Rs.30,000 crore to Rs.40,000 crore.
• Curtailment on borrowings at Rs 3,81,409 crore from Rs 3,86,344 crore.
• Increased focus on rural infrastructure to help in inclusive growth of economy.
• Reductions in Individual tax rates to result in more disposable income for individuals.
• Reduction in surcharge on domestic companies to boost bottom-line.
• Decline in subsidy burden to help control fiscal deficit.
• Exhibit 2: Misses for this budget.

Misses

• Oil sector de-regulation.

• Increase in MAT from 15% to 18%.
• Inflation concerns ignored at cost of growth.
• Food inflation left at the mercy of rainfall.
• Limited measures to boost agriculture output.

BUDGET IN A NUTSHELL

• Additional Rs 1,65,000 cr for bank re-capitalisation

• Rs 3000 cr for agricultural impetus
• Farm loan payments to be extended for six months
• Fertilizer subsidy to be reduced
• Rs 100 cr woman farmer fund scheme
• Coal regulatory authority to be set up
• Clean energy fund to be established
• Interest subvention of 2% to be extended for handicrafts and SMEs
• Rs 200 cr for Tamil Nadu textile sector
• Interest subvention for housing loans up to 1 lacs
• Allocation to defence raised to Rs 1.47 lakh cr
• Defence capex raised to Rs 60,000 cr
• Divestment target of Rs 25,000 cr
• Rs 1200 cr assistance for drought in Bundelkhand
• Rs 48000 cr for Bharat Nirman
• NREGA scheme allocation raised to Rs 41,000 cr
• Allocation to health Rs 22,300 cr
• Allocation for school education up from Rs 26,800 cr to Rs 31036 cr
• Allocation to power sector at Rs 5130 cr
• Rs 10,000 cr allocated for Indira Awaas Yojna
• Social Security Fund to have corpus of over Rs 1000 cr
• Rs 2400 cr for MSMEs
• Government to contribute Rs 1000 per month for pension security
• Rs 5400 cr allocated for urban development
• Rs 66100 cr allocated for rural development
• Rs 1900 cr allocated for UID project
• Gross tax receipts Rs 7.46 lakh cr
• Government to set up National Mission for delivery of justice
• 15% rise in planned expenditure
• Fiscal deficit target of 5.5% in FY11
• Excise on all non smoking tobacco raised
• Televisions to be costlier
• Mobile phones to become cheaper
• Cement to be costlier
• Refrigerators to be costlier
• Jewellery to be more expensive
• Monorail granted project import status
• CDs to be cheaper
• Excise duty on CFL halved to 4%
• Bank farm loan target: Rs 3.75,lakh crore
• Nutrient based fertiliser subsidy scheme to come into force from April 1, 2010
• To build 20 km of highway every day
• Income tax on income upto Rs 1.6 lakh: Nil
• Income tax on income above Rs 1.6 lakh and upto Rs. 5 lakh: 10 per cent
• Income tax on income above Rs.5 lakh and upto Rs. 8 lakh: 20 per cent
• Income tax on income above Rs. 8 lakh 30 per cent