OCT Issue

CURRENTAFFAIRSMASTER.
COM
Nobel Prize in
Sudhir Vasudeva 20Oct Medicine 4Oct
Robert Edwards of
Sudhir Vasudeva will be Britain won the 2010
the chief of Oil and Nobel Prize in medicine.
Natural Gas Corporation He was awarded for
-ONGC. He will take over developing in-vitro
as Chairman and fertilization, a breakthrough that has
Managing Director of ONGC. Vasudeva is helped millions of infertile couples
currently Director (Offshore) in ONGC. worldwide have children.
Edwards a professor emeritus at the
M Narendra 29Oct University of Cambridge, started
M. Narendra will be working on IVF as early as the 1950s.
joining Indian Overseas He developed the technique, in which
Bank as Chairman and egg cells are fertilized outside the body and
Managing Director with then implanted in the womb, together with
effect from November gynocologist surgeon Patrick Steptoe.
1. On July 25, 1978, Louise Brown in Britain
He is currently the Executive Director of became the first baby born through the
Bank of India and prior to it was Chief groundbreaking procedure, marking a
General Manager at Corporation Bank. revolution in fertility treatment.
The medicine prize committee in Stockholm
said in its citation that the achievements of
Edwards have made it possible to treat
infertility, a medical condition afflicting a
large proportion of humanity, including
more than 10 percent of all couples
worldwide.
Nobel Prize in Physics 5Oct
Russian-born scientists Andre Geim and
Konstantin Novoselov shared the Nobel
Prize in physics for "groundbreaking
experiments" with a new material expected
to play a large role in electronics.
The Royal Swedish Academy of Sciences
cited Geim and Novoselov, who are both
linked to universities in Britain, for
experiments with graphene, a flake of
carbon that is only one atom thick.
Experiments with graphene could lead to the
development of new material and the
manufacture of innovative electronics.
Since it is practically transparent and a good
Copyright © 2010 Current Affairs Master. All Rights Reserved.

CURRENTAFFAIRSMASTER.COM
conductor, graphene is suitable for The awards were established by Swedish

producing transparent touch screens, light industrialist Alfred Nobel the inventor of
panels and maybe even solar cells. dynamite and are always handed out on Dec.
Geim is a Dutch national while Novoselov 10, the anniversary of his death in 1896.
holds British and Indira Gandhi Award for National
Russian Integration 7Oct
citizenship. A.R. Rahman and the
Kishore Kumar Ramakrishna Mission
Award 5Oct Ashram, located in
The prestigious Chhattisgarh's Narainpur,
national Kishore have jointly won the 25th
Kumar award will Indira Gandhi Award for
be presented to noted film maker Yash National Integration for the
Chopra for the year 2009-10 while national year 2009 for their services in promoting
Lata Mangeshkar award will be given to and preserving national integration.
noted play back singer Anuradha Paudwal. The award, which consists of a citation and
These awards are given by the Madhya Rs.2.5 lakh, will be presented by Sonia
Pradesh government every year. A jury Gandhi on October 31, the death anniversary
constituted by the Madhya Pradesh of the former Prime Minister, Indira Gandhi.
government unanimously chose names of The award was instituted by the Congress in
Yash Chopra and Anuradha Paudwal. Both 1985 to recognise distinguished persons for
the awards consist of two lakh cash and a outstanding contributions to the cause of
citation. national integration.
Chemistry Nobel 7Oct Literature Nobel 8Oct
American Richard Heck and Japanese Mario Vargas Llosa has won the Nobel
researchers Ei-ichi Negishi and Akira Prize for Literature for his cartography of
Suzuki won the 2010 Nobel Prize in structures of power and his trenchant images
chemistry for developing a chemical method of the individual's resistance, revolt, and
that has allowed scientists to test cancer defeat.
drugs and make thinner computer screens. Llosa is known for his prolific writing that
The Royal Swedish Academy of Sciences included comedies and murder mysteries,
said the award honors their development of his most powerful novels have contained
palladium-catalyzed cross couplings in commentary on historical and political
organic systems. conditions in his native Peru and other parts
The academy called that one of the most of Latin America. The “monumental” work
sophisticated tools available to chemists and that Conversation in the Cathedral (1969)
one that is used by researchers worldwide represents for example, was
and in commercial production of deeply concerned with the
pharmaceuticals and molecules used to ravaging of Peruvian
make electronics. politics and government
Heck is a professor emeritus at the under the dictatorship of
University of Delaware. Negishiis a Manuel A. Odría in the
chemistry professor at Purdue University in 1950s.
West Lafayette, Indiana, and 80-year-old Llosa's first major
Suzuki is a professor at Hokkaido University international breakthrough came in 1963,
in Sapporo, Japan. with the publication of the novel The Time

of the Hero. However the book which drew SCOPE Award 9Oct
upon his military school experiences also Partha S. Bhattacharyya, Chairman, Coal
raised a controversy back in Peru and “a India Limited (CIL)
thousand copies were burnt publicly by has won the SCOPE
officers” of the school. “Special award of the
His other profoundly influential novel was jury”.
The Feast of the Goat (2000). This major Standing Conference
work was again a political thriller and was of Public Sector Enterprises (SCOPE)
loosely based on the dictatorship of Rafael excellence awards have been conceptualised
Trujillo of the Dominican Republic between and instituted to recognise the contribution
1930 and 1961. Other well known works of public enterprises and to encourage
include Aunt Julia outstanding persons for their hard work and
and the Scriptwriter leadership qualities. Earlier, under the
(1977), The War of chairmanship of Bhattacharyya, Coal India
the End of the had won the “SCOPE gold trophy 2007-08
World, (1981) and, for excellence and outstanding contribution
more recently, to the public sector management” in
Death in the Andes (1993). institutional category.
Born in Arequipa, Peru, Llosa grew up with Economic Noble Prize 11Oct
his mother in Bolivia after his parents were The US researcher Peter A Diamond, Dale T
divorced. After his family moved back to Mortensen and British Cypriot citizen
Peru in 1946, his parents were reunited and Christopher A. Pissarides
they settled in Lima. Llosa attended both a shared the Noble prize for
Catholic school in Lima as well as Leoncio Economics.
Prado Military Academy the place that gave The trio was awarded the
him material for The Time of the Hero prize for their "analysis of
following which he studied law and markets with search
literature in Madrid. frictions", in relation to the
Nobel Peace Prize 8Oct labour market.
A Chinese dissident, Liu They are to share the award, worth 10
Xiaobo won the 2010 Nobel million kronor ($1.5 million) equally.
Peace Prize for championing The prize - formally called The Sveriges
reform and human rights. Riksbank Prize in Economic Sciences in
At present, Liu Xiaobo is Memory of Alfred Nobel - was last year
behind the bars and he was awarded to US researchers Elinor Ostrom
unaware of Nobel Peace and Oliver Williamson for their work in the
Prize. field of economic governance.
The Nobel Committee Ostrom was the first woman to win the
president, Thorbjoern Jagland, announced economics prize that was first awarded in
his name for the Pece Prize. 1969.
He said that the writer and university Finance Minister of Asia Award
professor has been honoured "for his long 12Oct
and non-violent struggle for fundamental Finance Minister Pranab Mukherjee has won
human rights in China. this year's ‘Finance Minister of the Year for
The 54-year-old dissident was sentenced 11- Asia' award. This award is based on
year-jail last year. nominations from public and private sector

economists, analysts, outstanding contributions by very young

bankers, investors and other mathematicians in areas influenced by
experts. Indian mathematician Srinivasa Ramanujan.
This award unequivocally The age limit for the prize has been set at 32
signals the confidence the because Ramanujan achieved so much in his
Minister has inspired in key brief life of 32 years. The $10,000 prize will
stakeholders, by virtue of his be awarded at the International Conference
fuel price reforms, fiscal transparency and on Number Theory and Automorphic Forms
inclusive growth strategies. at SASTRA University in Kumbakonam, on
The award is from ‘Emerging Markets', the December 22, Ramanujan's birthday. Dr.
daily newspaper of record for the World Wei has made far-reaching
Bank and the International Monetary Fund contributions by himself,
(IMF). and in collaboration with
It may be recalled that others, to a broad range of
Mukherjee was rated one of areas in mathematics,
the best Finance Minister in including number theory,
the world in 1984 as well. automorphic forms, L-
Man Booker Prize 14Oct functions, trace formulas, representation
British writer and journalist theory and algebraic geometry.
Howard Jacobson's novel Born in China, Dr. Wei has a 2004
The Finkler Question, a bachelor's degree from Beijing University,
semi-autobiographical and completed his Ph.D in Columbia
comic take on Jewish identity, is the surprise University under the supervision of Shou
winner of this year's Man Booker Prize. Wu Zhang in 2009 and joined Harvard
It was not the unanimous choice of the jury. University as a post doctoral fellow.
Manchester-born Jacobson, who lives in Yale Award 19Oct
London, beat two of the bookies' favourites Ratan Tata will be conferred with the Yale
Tom McCarthy's C and Emma Donoghue's School of Management's prestigious
Room to win the £50,000 prize. "Legend in Leadership" award.
SASTRA Ramanujan Prize 14Oct Ratan Tata will be conferred with the Yale
The 2010 SASTRA Ramanujan Prize will be School of Management's prestigious
awarded to Wei Zhang, a Benjamin Pierce "Legend in Leadership" award.
Instructor at the Department of Tata Sons Chairman Ratan Tata will be
Mathematics, Harvard University, United conferred with the Yale School of
States. Management's prestigious "Legend in
According to a release from the Shanmugha Leadership" award in Mumbai.
Arts, Sciences, Technology, Research The award will be presented to Tata at a
Academy (SASTRA) University, Dr. Zhang conference of renowned business leaders
was the unanimous choice of the SASTRA from all over the world who will meet in
Ramanujan Prize Committee, comprising a Mumbai Oct 25. Organized by the Yale
panel of international experts, chaired by School of Management, the conference will
University of Florida's Professor see the world business leaders discussing
Krishnaswami Alladi, for making a "Leading Global Enterprises across Global
profound influence at the young age of 29 in Cities: Aspirations, Realities and
a wide range of areas in mathematics. Alternatives."
Established in 2005, this annual prize is for Past winners of the Yale Legend in

Leadership Award include Alan Mulally of Director.

the Ford Motor Company, Jamie Dimon of Dr Singh also presented CSIR's award for
J.P. Morgan Chase, Robert Iger of The Walt S&T Innovations for Rural Development for
Disney Corporation, Stephen Schwarzman 2009 to Indian Oil Corporation's Research
of Blackstone Group, Roger Enrico of and Development Centre at Faridabad.
PepsiCo, John Pepper of Proctor & Gamble; The awardees for 2010
Don Keough of The Coca Cola Co., and include G K
McKinsey founder Marvin Bower. Ananthasuresh of
Indian Institute of
Science (IISc),
Bangalore, Swapan K
Pati and Umesh Vasudeo Waghmare of
Human Rights Prize Jawaharlal Nehru Centre for Advanced
21Oct Scientific Research (JNCASR), Bangalore,
The European Parliament has awarded its Shubha Tole and Kalobaran Maiti of Tata
Sakharov human rights prize to Cuban Institute of Fundamental Research, Mumbai.
dissident Guillermo Farinas. Farinas has U.S. Award 23Oct
staged more than 20 hunger strikes and The San Francisco-based Electronic Frontier
spent more than 11 years in prison during Foundation (EFF), a leading civil liberties
his campaign for human rights. group, will confer the 2010 Pioneer Award
In July, he ended a hunger strike after on researcher Hari Prasad, who was recently
Cuba's communist government announced it released on bail after having been jailed for
was freeing 52 his security work on electronic voting
political prisoners. machines.
Doctors said Hari Krishna Prasad Vemuru is a security
Farinas, a researcher in India who recently revealed
psychologist, security flaws in India's paperless electronic
journalist and voting machines.
former soldier, had been near death while on Prasad hopes to help his
hunger strike this year. country build a transparent
The Sakharov Prize was named after the late and verifiable voting
Soviet dissident Andrei Sakharov and was system. The EFF's Pioneer
first awarded in 1988. It includes a cash Awards recognise leaders
award of 50,000 euros. who are extending freedom
Bhatnagar Prizes 21Oct and innovation on the
Prime Minister Manmohan Singh gave away electronic frontier.
the coveted Shanti Swarup Bhatnagar Prize Prasad is the first Indian to receive the
for 2009 and 2010 to 20 scientists for their prestigious award.
achievement in the field of science and Top international Award 26Oct
technology. A committed Indian nurse has been
For the first time in the 53-year-old history honoured with the first International
of the Prize, three awards were bagged by Neonatal Nursing Excellence Award, in
women scientists for the year 2010. recognition of her commitment for working
The Prize was instituted in 1957 by the on the frontlines of newborn care in
Council for Scientific and Industrial resource-challenged countries, where the
Research (CSIR) in honour of its founder majority of newborn deaths occur.

Rekha Kashinath Samant from Mumbai and his political career with the Pakistan
Regina Obeng from Kumasi in Ghana were People's Party but fell out with it when he
selected from nominations sent from all over dismissed then Prime Minister Benazir
the world to receive the award at the Bhutto's government in 1996.
opening ceremony of the 7th International Born on May 2, 1940, Leghari did his
Conference of the Neonatal Nurses at the schooling and graduation in Pakistan before
Inkosi Albert Luthuli International going to Oxford University for post-
Convention Centre in graduation. He returned to Pakistan to join
Durban. the Civil Services from which he resigned in
Regina and Rekha were 1973 to join the PPP.
selected over many David Thompson 25Oct
outstanding candidates for Prime Minister David Thompson of
their unwavering leadership Barbados died. Thompson, who became
and passion for ensuring prime minister of the Caribbean nation of
every new-born has a chance to survive and 270,000 people in January 2008, died.
thrive.
Norman Wisdom 5Oct FTTH Tech 4Oct
British comedy actor Norman Wisdom, Bhartiya Sanchar Nigam Limited (BSNL)
famous for his slapstick film roles in his launched the FTTH (Fibre-To-The-Home)
trademark cloth cap and ill-fitting jacket, has technology in Vadodara.
died. The FTTH network has been built on the
Wisdom rose to stardom with a string of hits Gigabyte Passive Optical Technology
in the 1950s and 1960s, such as "Trouble in (GPON) concept.
Store" and "A Stitch in Time", which It has a downlink speed of 2.5 Gbps and
usually involved his cheery cloth-capped uplink speed of 1.25 Gbps. Single optical
"Gump" character as an underdog battling fibre will cater to 32 customers with the
adversity. above stated band with.
P. Pendharkar 10Oct Now, BSNL will offer high speed
Film director and writer Prabhakar Bhalji broadband access (internet) upto 100 Mbps
Pendharkar passed away. with facilities of multi channel IPTV,
Pendharkar, son of legendary Marathi Video/Audio on demand, interactive
filmmaker Bhalji Pendharkar, recently gaming, conferencing, high speed lease line,
received a special mention at the National voice services etc
Film Awards 2009 for his book Eka on this technology.
Studioche Atmavrutta. The award was to be FTTH is very useful
conferred on him on October 21. technology to meet
His books include Rarang Dhang, Pratiksha, demands of TNF
Sansar Sansar, and Ani Chinar Lal Zala. areas, new developing commercial
Rarang Dhang had won a State award. /residential areas, corporate bulk
Farooq Leghari 21Oct demands,etc.
Farooq Ahmed Khan Leghari, Pakistan's It is the latest technology and offers
eighth President, died night in a Rawalpindi replacement to existing copper network with
hospital after a prolonged illness. better reliability and high speed data
Leghari was President from November 14, transmission.
1993, to December 2, 1997. Leghari began Fifth Gen Fighter Aircraft 4Oct

The Chief of Air Staff, upto 3,000 crore rupees during the 11th plan
Air Chief Marshal P.V for the setting up of 13 new Central
Naik has said that the Universities and conversion of three state
country will be universities into central universities.
acquiring 200 to 250 Fifth Generation Bilateral Cooperation 5Oct
Fighter Aircraft in a few years time. India and Belgium have agreed to enhance
These ultra modern aircraft will have all bilateral cooperation in the fight against
round situation-awareness with advanced terrorism and in the
avionics and stealth capability. It can be fields of science and
achieved by 2017. technology. The matter
came up for discussion
Judicial Accountability Bill 5Oct during discussions
The Cabinet gave its approval for a Bill between visiting Vice
which will provide a mechanism for inquiry President Hamid Ansari and Belgian Prime
into the complaints against the Judges of the Minister Yves Leterme in Brussals.
Supreme Court and the High Courts. In the other bilateral discussion, India and
The proposed Judicial Standards and Greece agreed to increase bilateral
Accountability Bill has been given a go cooperation in the fields of shipping,
ahead with some amendments. terrorism, piracy and tourism.
The Bill lays down judicial standards and Post-Matric Scholarship 5Oct
requires the judges of the Supreme and the The government has released over 120 crore
High Courts to declare their assets and rupees as a central assistance to the
liabilities. Government of Andhra Pradesh under the
The Bill seeks to replace the Judges Inquiry centrally sponsored scheme of Post-Matric
Act, 1968 while retaining its basic features. Scholarship to students belonging to the
She also said that a five-member National Scheduled Castes.
Judicial Oversight Committee to be chaired The anticipated expenditure during this
by the Chief Justice of the Supreme Court financial year under this scheme is about
will be set up. 578 crore rupees out of which, the
It will have the Attorney General, the committed liability of the State of Andhra
Supreme Court Judge nominated by the Pradesh is about 258 crore rupees.
Chief Justice, the Chief Justice of the High The objective of the scheme is to provide
Court nominated by the Chief Justice of financial assistance to the Scheduled Caste
India and an eminent person nominated by students studying at post matriculation or
the President on the panel. The Bill provides post-secondary stage to enable them to
for complaints to be made to the Oversight complete their education.
Committee which will then be sent to a Defence Deals 8Oct
three-member scrutiny panel for India and Russia inched closer to two mega
investigations. defence deals that have been under
The investigations will have negotiation for a while. The two sides also
to be completed in three decided to step up the tempo of joint
months time and the report exercises by making them an annual event.
submitted to the Apex Both sides will hold the Indra exercises
Oversight Committee. after a gap of three years, and moves are
The cabinet has also on to hold the next edition in Russia next
approved an expenditure of year.

India will receive 250-300 Fifth Generation performance, with respect to the thrust and
Fighter Aircraft (FGFA), that both countries weight ratio than Agni-II, which has a range
intend developing together. The of 2,000 km.
announcement comes against the backdrop Saraswat said the DRDO was developing
of bleak chances for the MiG-35 of making ballistic missiles with both short and long-
it to the top, in another $10 billion tender for range radars which were highly
126 multi-role fighters. manoeuvrable.
The 10th Meeting of the India-Russia Inter- On the indigenous light combat aircraft
Governmental Commission on Military (LCA) Tejas, negotiations were going on to
Technical Cooperation (IRIGC-MTC) also acquire the GE4141 engines and this would
tied up the loose ends of another ambitious be completed within a month.
co-development project the multirole Projects for Urban Amenities 11Oct
transport aircraft (MTA), for The government will launch ten pilot
which the shareholder projects from January next year with a view
agreement was signed in to provide Urban amenities in the rural areas
September. of the country.
These two projects are the These pilot projects are proposed in the
“major achievements of this states of Rajasthan, Maharashtra, Kerala,
year, and for the next 10 Orissa, Puducherry, Tamil Nadu, Andhra
years these two projects, the Pradesh and Uttarakhand. The project will
FGFA and the MTA, will be shining be expanded further after asserting the
examples of India-Russia defence ground reality.
cooperation. These projects are being launched through
Power Project 8Oct private-public partnership
The Punjab government had signed a mode with an average
Memorandum of Understanding with investment of 100 crore
National Thermal Power Corporation rupees in each project.
(NTPC) for setting The project aims to
up a 2640 Mw Coal improve the livelihood
based Thermal opportunities and holistic
Power Project at development of the rural areas. 248 crore
Gidderbaha with an rupees are proposed to be ear-marked in the
estimated outlay of next five year plan.
Rs 15,000 crore. India & Vietnam 14Oct
This will be the biggest thermal power India and Vietnam had decided to extend the
project in Punjab in terms of capacity. frontiers of their defence-related
The MoU was signed by Power (Punjab) cooperation. As the centrepiece, New Delhi
Principal Secretary Arun Goel and NTPC agreed to expand assistance to Hanoi in its
Director I J Kapoor. ongoing military modernisation.
Agni-II Plus 10Oct The modalities of toning up cooperation
Director-General of the Defence Research were discussed, from a broad political
and Development Organisation (DRDO) perspective, by Defence Minister A. K.
V.K. Saraswat said that Agni-II Plus, a Antony and his Vietnamese counterpart
modified version of the Agni-II strategic Phung Quang Thanh in Hanoi. Their talks
missile, would be launched next year. followed India's participation in the first-
It would have a higher range, higher ever Asia-Pacific Defence Ministers'

meeting, which ended in the Vietnamese disasters all over Russia and coordinates
capital. relief and mitigation efforts.
Both countries expressed satisfaction at the We badly need such a centre in India and
progress made so far under their defence our Home Minister will be visiting Russia
cooperation memorandum of November soon to firm up specific agreements.
2009. The two sides agreed to explore the
Specifically, India now agreed to share its possibility of setting up a joint venture in
expertise in defence-related information India to produce silicon chips and telecom
technology and the usage of English for equipment. The idea came up during the
military purposes. Such cooperation was Minister's visit to the Moscow-based Micron
seen as a promising possibility. Company, which boasts an integrated chip-
However, it was not immediately clear making facility.
whether the model of India's assistance to Priority areas
Indonesia, specifically an army-oriented IT We are looking to Russia, which is among
lab, would apply to Vietnam as well. the few countries manufacturing 3G and
There was no authoritative word on whether WiMax chips, to assist India in achieving
Vietnam would, like Malaysia, seek to self-sufficiency in this field. India and
capitalise on India's expertise in the training Russia are planning to sign an MoU in the
of pilots for Russian-made combat aircraft. field of IT and Telecom when Shchegolev
The two sides discussed military training, as visits India. We have identified three
different from joint exercises, as a key priority areas for
aspect of cooperation. cooperation in IT: e-
New Delhi agreed to host the Vietnamese governance,
Army for joint training in mountain and telemedicine and
jungle warfare at a suitable Indian location techno parks.
next year. India offered to help Vietnam in Interestingly, the same areas were identified
mastering the art of United during the previous visit of an Indian IT and
Nations peace-keeping Communications Minister to Russia in 2001.
operations. However, there has been no follow-up since
Cooperation between the then.
defence institutes of the two Military Drills 15Oct
countries was also agreed After a gap of three years, India and Russia
upon. will conduct a 10-day joint anti-terrorism
Vietnam, for its part, wanted more port-calls exercise starting in the picturesque setting of
by the Indian warships and offered Uttarakhand's Ranikhet district, home of the
maintenance-and-repair facilities at its ports. highly-decorated
Joint Venture 14Oct Kumaon Regiment as
Union IT and Communications Minister A. well as elements of
Raja said that India will be seeking Russia's the Gorkha and Naga
assistance in setting up a national disaster Regiments.
management centre modelled on a Russian Termed Indra 2010,
facility. Indian and Russian military personnel will
The Minister was ‘highly impressed' by the form a joint task force and plan and carry
high-tech National Emergency Management out a series of mock anti-terrorism missions
Centre he visited. The centre gathers online in the mountains.
information about natural and manmade Kalpeni Commissioned 15Oct

The indigenous Water Jet Fast Attack Craft accounts for 70-75 percent of total diamond
(FAC), INS Kalpeni, was commissioned by exports and employs 850,000 people,
Chief Justice of the Kerala High Court Jasti making it the largest cutting centre by value
Chelameswar at a formal ceremony held at and number of employees.
the Navy's Southern Naval Command. It is All top 400 exporters are over here (at the
the seventh of the 10 new generation Car bourse), which accounts for 90 percent of
Nicobar class FACs designed and built by the turnover.
Garden Reach Shipbuilders and Engineers Incorporated in 1984 with a group of
(GRSE), Kolkata. diamond exporters in the city, the exchange
Kalpeni, propelled by three powerful water expects the turnover to rise 10-15 percent
jets, can achieve speeds in excess of 35 annually the next five years.
knots. Currently, it has a turnover of $27-28 billion
Based at the Southern Naval Command, it and hopes to grow substantially on higher
will bolster the capabilities of the Command participation from diamond traders across
in coastal surveillance and search and the globe. We expect diamond traders from
destruction of fast moving targets. Its main Israel and Belgium to start trading over here.
armament is a 30mm CRN-91 gun with an The diamond industry is one of the fastest
Optronic Pedestal Sight as its director. growing in the world. India is leading in
It has also been fitted every aspect of the trade, whether it be the
with 11 machine guns number of pieces manufactured, maximum
of various types and carats being exported and highest volumes.
shoulder-fired IGLA And the BDB will now afford it the best
surface-to-air missiles. equipped infrastructure in the world.
Commanded by India is a major diamond manufacturing
Lieutenant Commander Subhal Nathan, it centre with 11 out of 12 diamonds in the
has a crew of three officers and 38 sailors. world being cut, polished and processed.
Diamond Bours17Oct The BDB will ultimately help make India an
The world's largest diamond exchange opens international trading centre for ms and
in the Mumbai's business district Bandra- jewellery and take the step towards creating
Kurla Complex, taking India from a a Brand India in the world of diamonds.
manufacturing to a trading hub and With state-of-the-art facilities and security,
challenging the dominance of traditional the centrally-
centres like Belgium and Israel. airconditioned BDB
Bharat Diamond Bourse (BDB), designed by would have an
eminent architect Balakrishna Doshi and inflow of over
spread over 20 acres with nine interlinked 20,000-27,000
nine-storey towers each, has been set up at a people a day when it
cost of Rs.1,100 crore (over 200 million is fully operational
USD). in the next few months.
The objective is to establish necessary Youth Festival 19Oct
infrastructure facilities for the promotion of National Youth Festival (NYF) would be
diamonds, diamond jewellery from India organized in Udaipur city of Rajasthan on
and provide all support and service facilities January 12 next year.
to the traders, importers, exporters and other The sixteenth annual National Youth
stakeholders. Festival (NYF) would be organized in
India's diamond processing industry Udaipur city of Rajasthan on January 12

next year in collaboration with the State and

Central governments.
Indian Military
Deals 19Oct
With the Indian
armed forces looking at a possible
$50-billion worth of purchases in the next
five years, US major Boeing has set its eyes
on garnering a large chunk of that pie which
includes the Indian Air Force’s (IAF) and
Navy’s requirements of airborne early
warning system and mid-air refuellers.
Boeing’s vice-president and India head
Vivek Lall said here that his company had
already carried out a briefing for the Navy
and IAF on its B 737-700 platform airborne
early warning and command aircraft
(AEW&C), apart from receiving
the IAF’s tenders for the refuellers.
The two deals are estimated to be
worth over $1- billion each.
The AEW&C system that provides
for long distance beyond horizon
radar coverage encompasses both
the B 737-700 aircraft platform and a variety
of aircraft control and advanced radar
systems.
Comprising components created by Boeing
and Northrop Grumman, the B 737
AEW&C represents the future in this force
multiplier system.
IAF plans to have at least 10 AEW&C, apart
from developing its own system through the
Defence Research and Development
Organisation to be fitted on the Embraer
platform.
Boeing has received RFP for IAF’s
requirement of refuellers.
Boeing has the KC-767 tanker/transport
refueller based on its commercial 767
platform. Boeing is also contemplating
developing a variant of its larger 777 design.
European consortium EADS’ Airbus A330
multi role tanker transport (MRTT) is
Boeing’s competitor for the contract.
India has already bought three Israeli

Phalcon early warning Centre to look into the conduct of the

systems and plans to get Commonwealth Games would have a much
two more of it soon. broader mandate, going beyond allegations
of corruption and misappropriation of funds.
Social Security Even while focusing on “alleged
Agreement 22Oct misappropriation, irregularities, wasteful
A reciprocal social expenditure and wrongdoings in the conduct
security agreement (SSA) and protocol that of the Games,” the terms of reference of the
will benefit a huge number of Indians panel approved include examination of
particularly those working in the fields of “weaknesses” in management and issues
Information Technology, medicine and relating to coordination among various
finance was signed in Seoul. agencies involved in the development of
Overseas Indian Affairs Minister Vayalar infrastructure and conduct of the Games.
Ravi and Korean Minister for Trade Kim The panel, headed by the former
Jong-hoon signed the pact. Comptroller and Auditor-General of India,
An SSA with Korea would enhance the V.K. Shunglu, would look at planning and
movement of professionals, and strengthen execution of development projects and
the trade and investment, between the two contracts for service delivery, with reference
countries. to time, cost and quality and the role of
Small Dam 25Oct advisers, consultants and officials of the
An expert committee formed after a Organising Committee.
tripartite meeting of the Centre, State govt, India & Japan 2Oct
and AASU has prescribed construction of a India and Japan has decided to extend their
small dam instead of the 2000 MW hydel cooperation to areas such as joint ventures in
dam at Lower Subansiri in Arunachal rare earth minerals, some hitherto
Pradesh. unexplored areas in defence, and transport
Interacting with locals after visiting the and industrial corridors in south India.
Lower Subansiri dam project at These will build on a recently finalised
Gerukamukh, members of the expert economic pact, more intimate security ties,
committee were of the opinion that a small two mega infrastructure projects in north-
dam was feasible in the area. western India and ongoing
Committee Coordinator Dr Jatin Kalita of talks on a nuclear agreement.
Gauhati University said that the sand Prime Minister Manmohan
structure, seismic and earthquake report Singh and his Japanese
does not favour a dam of 2000 MW capacity counterpart Naoto Kan, during
and so we have suggested construction of a restricted and delegation-level
small dam. talks, resolved to continue the
The members said the dam will not contain talks on a civil nuclear
flood as it was not a run of the river project agreement. They instructed officials to
and that the model of the mega dam for ensure the smooth implementation of the
lower Subansiri had to be changed. Comprehensive Economic Partnership
Agreement (CEPA) and accelerate
discussions on the reform of the United
Nations Security Council (UNSC), to which
Shunglu Panel 26Oct both countries are aspirants as permanent
The high-level committee set up by the members.

Both India and Japan would move towards (DoT) will begin MNP testing for the
long-term cooperation including the Haryana circle on November 8 and go live
implementation of joint ventures in rare on November 25. For the rest of the circles,
earth minerals. it will be implemented in phases.
Joint Exercise 26Oct Number portability was scheduled to be
After a two-day break, fliers of the Indian started in metros and category-A circles on
Air Force and the Royal Air Force were December 31, 2009, and for the rest of the
back in the skies as part of Indradhanush, country it was slated for April 1, 2010. It
the joint exercise between the two countries was to be fully operational by October 31.
that started in the Kalaikunda Air Force But issues related to operators testing their
Station in West Bengal's Paschim networks and a Foreign Investment
Medinipur district. Promotion Board clearance to Telcordia
While pilots would continue with being stuck due to security issues
missions related to Large Force derailed the schedule.
Engagements for DoT had given licences to Syniverse
now, the next phase Technologies and MNP
of the exercise will Interconnection Telecom Solutions,
begin on October for 74:26 joint venture between US-
27, which includes based Telcordia and Deepak Talwar
RADAR denial. Consultants Pvt Ltd to implement MNP. In
The missions in March 2009, the Ministry of Home Affairs
this exercise are focussed on air defence. revoked the FIPB approval to Telcordia,
The first phase is ‘Large Force Engagement,' citing security concerns. DoT has now asked
deals with the deployment of a large number Syniverse to get ready to implement MNP
of aircraft within a limited air-space, a across the country, as it may have to
situation that can be a nightmare for air withdraw the licence to Telcordia.
traffic controllers, but commonly faced in C-130J Plane 26Oct
combat situations. The US will hand over the first of the six C-
Since the attack and defence aircraft come in 130Js ordered by India to its Air Force in
waves, planes come into close proximity in December and it is expected to reach its base
the skies and the skills of both the fighter near here by February next year.
pilots and fighter-controller (the person The C-130J made for India by American
manning the RADAR) are tested. aerospace major Lockheed Martin at its
The second phase of the exercise, RADAR Marietta facility had recently carried
denial, deals with a situation when due to out its first flight successfully after it
unforeseen circumstances, the RADAR was painted in IAF colours.
stops functioning. The first of the six C-130Js ordered by
Number Portability 26Oct India will be handed over in December
Haryana will experience India’s first mobile this year in
number portability (MNP) on November 25. Georgia and it
MNP allows mobile subscribers to change will reach its Indian
their service providers without changing base by February
phone numbers. It has been delayed thrice in next year.
less than a year, with the deadline now being India had bought
December 20 for pan-India rollout. the C-130Js from
The Department of Telecommunications the US through an agreement signed in 2007

for USD 950 million. marking the ninth such pact that New Delhi
International Airport 31Oct has finalised since getting the NSG waiver
Himachal Pradesh chief minister Prem in 2008.
Kumar Dhumal has said that the first This announcement was made after Prime
international-level airport in the state would Minister Manmohan Singh met South
be set up near Shimla under the PPP mode at Korean President Lee Myung-bak in Hanoi
an initial cost of Rs 1,000 crore. on the sidelines of the ASEAN Summit.
He also announced that that 10 more Korea will be the ninth country with which
helipads would be set up in Sirmour, India will be signing the nuclear agreement
Kinnaur and Mandi districts thereby after it got the waiver from the Nuclear
increasing the total number of helipads in Suppliers' Group (NSG) in 2008.
the state to 70. He also said that heli-taxis The others are the US, France, Russia,
services in the state would be started soon. Canada, Mongolia, Kazakhstan, Argentina
The government had finalised and Namibia.
the names of three heli-taxi The NSA noted that the two countries have
operators and a formal MoU made considerable progress in various
with them would be signed. aspects of the relations, including civil
In the initial stage, all district aviation and space.
headquarters would be The two leaders also discussed issues
connected by heli-taxis relating to G-20 and stressed that it is
services. important not only to take decisions but
India-Nepal 31Oct have a system of systematic implementation
India and Nepal have inked a pact to boost so that they are carried forward over several
cooperation in the education sector as New years.
Delhi pledged to provide Rs 25 million to Both agreed to work together in G-20,
improve infrastructure in one of the oldest whose Summit is taking place in Seoul, the
institutions in the country's eastern capital of South Korea, next month.
Taplejung district.
An MoU was inked between the Embassy of
India and the Department of Urban
Development and Building Construction,
Annual Conference of ANRPC 5Oct
Ilam district.
New Delhi's financial grant of Rs 25 million India will be hosting the the third Annual
for the construction of hostels of Shri Sinam Rubber Conference, the 33rd Assembly and
Higher Secondary School comes under other committees of the Association of
Nepal-India Economic Cooperation. Natural Rubber Producing Countres
Established in 1950 as a primary school and (ANRPC).
later upgraded as higher secondary school in The theme of this year's confernce is
2001, the school is one of the oldest
'Natural Rubber Industry in the New Decade
educational institutions in Nepal.
The new infrastructures would cater to the Opportunties, Challenges and Strategies'..
educational need of over 1,200 students, About 400 delegates including rubber
about half of them girls. Industry players, policy makers, researchers
Civil nuclear Cooperation 31Oct and analysts are among those who would be
India and South Korea have reached an participating.
agreement on civil nuclear cooperation,
The first session focusing on the theme

'Outlook for Global Supply and Demand of These include 27 countries from the
Rubber' will be chaired by Dr Asoka European Community, ten ASEAN
Nugawela, Director, Rubber Research countries and six NESA countries, besides
Institute of Sri Lanka, Prof Djoko S the three newly admitted members.
Damardjati, Secretary General ANRPC and The European Commission and the ASEAN
Jom Jacon, Senior Economist of ANRPC Secretariat are also partners in the group.
will jointly present the paper titled 'Global U.N. Security Council 13Oct
Supply and Demand of Rubber'. India was elected as a non-permanent
Another paper 'Outlook member of the United Nations Security
for Global Demand for Council with an overwhelming number of
Natural and Synthetic countries endorsing its sole candidature
Rubber' will be chaired from the Asian group.
by Dr Stephen V Evans, In polling for 10 seats that took place at the
Secretary General U.N. headquarters in New York, India
International Rubber Study Group, received the highest number of votes 187
Singapore. out of 192 among all countries in the fray.
The focus of the second session will be on This resounding
'Natural Rubber Industry in ANRPC endorsement of India's
member Countries: Present Status, candidature at the United
Opportunties, Challanges and Strategies for Nations reaffirms the
the Future'. overwhelming support India
Another session on 'Developments in enjoys in the international
Rubber Market and Downstream Sectors in community.
Natural Rubber Producing Countries' will Longest Tunnel
also be held besides a panel discussion of 17Oct
'Supply and Demand of Rubber in the new A giant drilling
Decade-Emerging issues and Strategies'. machine punched its
ANRPC is an intergovernmental way through a final
organisation having 11 mebers presently section of Alpine rock
including China, Indonesia, Malaysia, Sri to complete the world's
Lanak, Thailand besides India. longest tunnel, after 15 years of sometimes
The committee's aim is to improve lethal construction work.
productivity of rubber holdings, reduce cost, The 57 Km high-speed rail link, which will
increase value addtiion in downstream open in 2017, will form the lynchpin of a
rubber sector among others. new rail network between northern and
ASEM 5Oct southeastern Europe and help ease
The two day Asia-Europe Summit which congestion and pollution in the Swiss Alps.
concluded in Brussels has admitted Russia, It is the third tunnel to be built through the
Australia and New Zealand as the new snowbound St Gotthard area but it is much
partners of ASEM. With this, the number of the longest and three Km longer than a rail
partners in ASEM has gone up to 48. link between two Japanese islands, the
current record holder at 53.8 Km. A super typhoon has struck the northern
Nuclear Plant in Venezuela 17Oct Philippines with heavy rain and winds of up
Venezuelan President Hugo Chavez reached to 260 kilometers an hour leaving at least
a deal with Russia to build the South three people dead. Typhoon Megi made
American country's first nuclear plant, as landfall in Isabela province at 1125
questions arose why a nation rich in oil and destroying buildings and crops, cutting
gas would feel the need to venture into power and telecommunications.
atomic energy. Thousands sheltered in public
The two nations also signed other energy buildings or fled to higher ground,
agreements. and a "state of calamity" was
Russia has cultivated close ties with declared in Isabela.
Chavez's government to expand its global Privatisation Plans 21Oct
clout and counter US influence in Latin Russia has announced further details of
America. plans for its biggest privatisation since the
Russia plans to 1990s - which could rise up to 1.8 trillion
build two 1,200 roubles. The sale could involve the total or
megawatt nuclear part-sale of stakes of up to 900 companies,
reactors at the including the oil giant Rosneft and Russian
Venezuelan plant. Railways. The announcement was made by
APEC Meet Russia's First Deputy Prime Minister, Igor
17Oct Shuvalov. Among the details given,
The first-ever ministerial meeting on food Shuvalov said Russian airline Aeroflot may
security of the Asia-Pacific Economic form part of the sell-off.
Cooperation (APEC) was kicked off in the Fastest Train 27Oct
Japanese port city of Nigata. China has unveiled what it described as the
Ministers from the APEC member countries world's fastest bullet train, which will
started talks on issues, including the connect two of the country's industrial hubs
sustainable development of agriculture to travelling at an average speed of 350 km per
ensure long-term food security. hour.
Japanese minister of Agriculture, Foresty The rail link between
and Fisheries, Michihiko Kano said at the Shanghai and Hangzhou,
opening ceremony that increasing the the latest addition to
availability of food was necessary not only China's fast-expanding
for APEC region but also for the food high-speed rail network
security in the world. that is already the
An action plan aimed world's largest, covers
at preventing food the 200-km distance in only 45 minutes,
shortages is set to be reducing the travelling time from 78
drawn up in the two- minutes.
day meeting along with a declaration. The home-built CRH380 bullet train has
Megi 19Oct been recorded travelling at 420 km per hour,
a world record. It will, however, travel woodlands traditionally found around

between the two cities at less than full tilt, at Japanese villages.
an average speed of 350 km per hour. The 12-day UN conference aims to secure
China's high-speed rail network now agreement on how to stop the rapid loss of
stretches over 7,431 km. The government the world's plant and animal species, as well
plans to expand the network to over 16,000 as their habitats, to stem what biologists say
km by 2020. is a global extinction crisis underway.
Investment in the high-speed rail network EAS 29Oct
has gathered pace since the first line, The United States and Russia will be the
connecting Beijing with the port city new members of the East Asia Summit
Tianjin, opened in 2008. (EAS), a forum of native states of the region
Following the $586- and their dialogue partners among major
billion stimulus plan powers of the world.
that was announced in This follows a decision taken by the leaders
November 2008, of the Association of Southeast Asian
spending on Nations (ASEAN) at their latest annual
infrastructure projects has increased summit in Hanoi.
substantially. Washington and Moscow will be invited to
China is investing an estimated $300 billion attend the annual meetings of the EAS from
on its high-speed rail network. 2011.
Biodiversity Aid 27Oct Founded over four years ago, the EAS now
Japan plans to give about $60 million to help has 16 members all the 10 ASEAN
developing countries protect species and countries, Australia, China, India, Japan,
habitats at a UN conference on biodiversity New Zealand, and the Republic of Korea.
it is hosting. The ASEAN leaders emphasised the need
The government is preparing to announce for “ensuring centrality” to an expanded
aid worth roughly five billion yen to EAS as well. Currently, the ASEAN
developing countries. Chair presides over the EAS meetings.
The fund, to be announced during the 193- As “a leaders-driven strategic forum,”
nation meeting of the UN's Convention on the EAS functions as a key organisation
Biological Diversity (CBD) in Nagoya, for regional
would be offered to the CBD secretariat cooperation on a
between now and 2014. range of issues
The aid aims to help developing countries including security.
draft national strategies for biodiversity “An effective regional architecture should
conservation, and pay for expert training and be based on existing processes which are
cooperation in scientific data-gathering. complementary to each other,” the ASEAN
The aid would also promote Japan's leaders decided. These processes include the
"Satoyama Initiative" a worldwide effort to ASEAN+3 forum, the +3 countries being
help preserve so-called socio-ecological China, Japan, and the Republic of Korea.
production landscapes such as the semi-wild
Affairs has allowed a discount of 5 per cent

to retail investors on the issue price and
Portfolio Management 5Oct allowed reservation of shares of 0.50 per
The Securities and Exchange Board of India cent of the issue size along with discount of
has streamlined the norms for charging of 5 per cent on the offer price for employees
fees by portfolio managers, a move that will of the largest shipping company in the
check the practice of levying arbitrarily by country owning 75 vessels. The ownership
them. of the government in SCI will come down to
Under the proposed norms, a portfolio 63.75 per cent from the current 80.12 per
manager, who manages the wealth, will be cent after the sale and further issue of
allowed to charge performance fee on the shares. The government hopes to develop a
basis of increase in the value of portfolio. road map for higher public participation in
It has come to the notice of SEBI that the the company while ensuring that
clauses relating to fees and charges in the government equity did not fall below 51 per
portfolio manager-client agreement do not cent.
always clearly reflect Textile parks
the fees and charges The Union Cabinet has cleared a proposal to
payable by the client sanction more integrated textile parks under
and the manner of the Textile Ministry's Scheme for Integrated
computation of the Textile Parks.
same. The number of additional parks would,
The new norms for portfolio managers will however, be limited so that the committed
apply from November 1. As regards the liability for the new projects were within the
existing customers, the portfolio managers balance amount of Rs.200 crore available
will be required to implement the norms under the scheme for the XI Plan.
from January 1, 2011. The Cabinet cleared a modification of the
“Henceforth, profit/performance shall be guidelines for appraisal of proposals under
computed on the basis of high watermark the scheme. There will be now a two-tier
principle (the highest level achieved during system, an inter-Ministerial project scrutiny
a period) over the life of the investment, for committee to appraise the proposals. Its
charging of performance/profit sharing fee. recommendations would be then processed
Divestment in SCI 6Oct by a Project Approval Committee for the
The Centre has embarked on a two-pronged final approval. The new system is expected
strategy, allowing disinvestment of 10 per to provide for a deeper and a more incisive
cent of its stake in Shipping Corporation of appraisal. Funds for 10 sick PSEs
India (SCI) and allowing it to raise The Cabinet Committee on Economic
additional equity of like quantum. Affairs (CCEA) has approved Rs.70.76
The disinvestment in this Navratna company crore for payment of salaries, provident
is expected to generate about Rs.1,300 crore. fund, gratuity, pension and other dues to
The Cabinet Committee on Economic employees of 10 sick central public sector
enterprises (CPSEs). The CCEA approved
the non-plan support for sick or loss making problem of working capital for the execution
CPSEs for the nine months from January of the orders. The extension of the benefit of
2010. The CPSEs which will benefit from 30 per cent reservation quota with 70 per
the decision are: Hindustan Cables cent advance from BSNL and MTNL will
(Rs.20.93 crore), HMT (5.6 crore), HMT ensure enough orders for ITI for the
(Watches) (Rs.14.31 crore), HMT (CW) production activities.
(Rs.96 lakh), Hindustan Photo Films RBI Panel 8Oct
(Rs.3.10 crore), Triveni Strucurals (Rs.71 The Reserve Bank of India has constituted
lakh), Tungbhadra Steel Products (Rs.60 an Expert Committee headed by Y. H
lakh), Nepa (Rs.11.46 crore), Scooters India Malegam for studying the advisability of
(Rs.11.01 crore) and HMT Bearings granting new urban co-operative banking
(Rs.2.32 crore). licences.
The CCEA also delegated its power to Some of the issues the committee will look
Minister of Heavy Industry and Public into include the role and performance of
Enterprises Vilasrao Deshmukh to sanction UCBs over the last decade, the need for
budgetary support, through re-appropriation organisation of new UCBs in the context of
from out of the approved non-Plan budget the existing legal framework and the
outlay, to loss-making public sector existing regulatory policy on setting up of
enterprises. It was considered essential that new UCBs. It will
the interim financial support from the also examine
government be provided so that the whether licensing
operations of the companies will not be could be restricted
affected. The salary or wages support is only to financially
being provided to these CPSEs since May sound and well
2004. Earlier, an amount of Rs.1,883 crore managed co-operative credit societies
was sanctioned on 16 occasions. In 2004, through conversion route.
there were 24 CPSEs which had defaulted in The RBI had announced in the Annual
payment of wages and salaries. Policy Statement 2010-11 that it would set
Reservation quota for ITI extended. up a committee comprising all stakeholders
The Cabinet Committee on Economic for studying the advisability of granting new
Affairs has approved the continuation of 30 UCB banking licences.
per cent reservation quota of the requirement Exchange of Tax Info 8Oct
of Bharat Sanchar Nigam and Mahanagar India had entered into an agreement with the
Telephone Nigam for procurement of Caribbean tax haven Bermuda for exchange
equipment from debt-ridden ITI, Bangalore- of information to check tax evasion and
based public sector undertaking under the money laundering.
Ministry of Communication and IT. The Tax Information
The extension has been granted for two Exchange Agreement
years. The two telecom firms will also give (TIEA), as it is known
70 per cent advance against the orders under the parlance of the Organisation for
placed on ITI so that it does not face the Economic Cooperation and Development
(OECD), is the first such pact signed by OECD to address harmful tax practices.
India with any country. Bermuda is a British overseas territory in the
Under the agreement, signed here by the North Atlantic ocean with an population of
Prime Minister of Bermuda Ewart Brown little less than 70,000. It is one of the world's
and India's Minister of State for Revenue in most famous 'tax
the Ministry of Finance S S Palanimaickam, havens' or offshore
both countries can share details on banking, financial centre.
ownership and past information in tax Indian Exports
matters. 8Oct
There is a specific provision for providing Though Indian exports rose for the 10th
banking and ownership information...The consecutive month in August, growing an
agreement also allows exchange of past annual 22.5 percent to $16.64 billion
information in criminal tax matter. (Rs.77,509 crore), the trade deficit widened
It also provides for the two countries to to a huge $56.62 billion, underlining the
share information relevant to the need to increase the country's outbound sale
administration and enforcement of the of goods.
domestic laws of India and Bermuda. India is targeting a 15 percent growth in this
The requesting side has to provide some fiscal's exports at around $200 billion,
minimum details about the information having seen a 4.7 percent dip in 2009-10,
requested and any information provided is to owing to the global financial crisis.
be treated as secret and can be disclosed The trade deficit for April-August, 2010 was
only to relevant tax authorities and oversight estimated at $56.62 billion which was higher
bodies. than the deficit of $40.27 billion during the
There is a specific provision that the previous corresponding period.
requested party shall use its information Imports during August rose 32.2 percent at
gathering measures to obtain the requested $29.67 billion (Rs.138,211 crore), resulting
information even though the part may not in a gap of $13.04 billion
need such information for its own tax between exports and
purposes. imports in the month.
During that visit, Brown had expressed Cumulative value of
Bermuda's interest in signing a exports increased 28.6
comprehensive Double Taxation Avoidance percent during first five
Agreement with India. months of 2010-11 at
The concept of TIEA was developed by the $85.27 billion compared to $66.3 billion in
Paris-based Organisation for Economic the same period last fiscal.
Cooperation and Development (OECD) Value of imports for the period April-
Global Forum Working Group on Effective August rose 33.1 percent at $141.89 billion
Exchange of Information for promoting against $106.6 billion the likewise period in
international co-operation in tax matters 2009-10.
through exchange of information. Innovation Fund 9Oct
It grew out of the work undertaken by the A $1-billion fund to facilitate innovations
for inclusive economic growth in India has Foreign Exchange Market 11Oct
been proposed. Amid Indian rupee's rising to two-year high
The proposal, yet to be approved by the last week, Reserve Bank said, it may
Centre, was agreed to at a recent meeting of intervene in the foreign exchange market if
the National Innovation Council , according FII inflows are volatile. Foreign institutional
to Sam Pitroda, Adviser to Prime Minister investors FIIs have pumped a record 96,000
Manmohan Singh on Information crore rupees so far this year into Indian
Infrastructure and Innovations. stock markets.
Pitroda said 20 industry clusters and 20 Taking part in a panel discussion in
university clusters would be identified to Washington, RBI Governor D. Subbarao
help “seed innovations” for promoting said, intervention will come if the inflows
inclusive economic growth under this new are volatile or if they disrupt the
initiative. The modalities of creating and macroeconomic situation. He said, such a
operating the proposed investment fund move will be able to help keep liquidity
were now being explored. conditions consistent with activity in the real
Tracing the “do-able” projects for the economy and to maintain financial stability.
development of information infrastructure in However, RBI Deputy Governor Subir
India he said: “We are a nation of a billion Gokarn had said the central bank could
connected people now.” Nearly 700 million intervene in forex markets
cell-phones were in use across the country. if capital surge leads to
“Pretty soon, we will have 800 million.” any disruptions. Market
And, the “real challenge now is to provide regulator SEBI had last
broadband.” The current 10-million week exuded confidence
broadband connections should be scaled up that there would not be
to the required 100-million mark. “We can any reversal of foreign fund flows into
capitalise on the [existing] 800,000-km of equity markets as long as Indian economy is
fibre [optics] to connect broadband facilities on a strong wicket.
to our companies, government, homes and FSDC Panel 13Oct
all that. That's one do-able. In the next three Even as the Financial Stability and
years, we should have pretty much100 Development Council (FSDC) is to be
million connections and started rolling out headed by the Finance Minister, the
3G.” Some of the other “do-able” initiatives government has sought to
were the UID process, which has started; the allay the apprehensions of
prospective connectivity among the IITs, the Reserve Bank of India
IIMs, and some CSIR labs; the programme (RBI) over the autonomy
of linking 2,50,000 panchayats; and the of regulators by appointing
computerisation of all the court cases. the apex bank's Governor
Following the Supreme Court's recent as the head of a sub-
intervention on the issue of public committee of the body being set up to
distribution, the NIC is going to put together maintain financial stability.
a software package to develop real data. FSDC will be announced shortly,” Finance
Minister Pranab Mukherjee said after his acquisition cost and second, how the
meeting with various regulators in the acquisition would supplement the strengths
financial sector, namely, the RBI, SEBI (for of the bank.
markets), IRDA (for Although the bank has had limited overseas
insurance) and PFRDA presence, it has been able to garner non-
(for pensions) on the proposed FSDC. resident Indian
The Council would have one sub-committee deposits. The bank
which would be headed by RBI Governor. has two branches in
Ostensibly, the move to appoint the RBI the UK and one
Governor as head of the FSDC sub- branch each in Hong
committee to look into inter-regulatory Kong and Shanghai.
issues has come about in the wake of the The bank is in the final stages of deciding to
apex bank expressing concerns over breach expand its presence to include Bahrain,
of the regulators' Sharajah and Qatar. Setting up branches in
autonomy. African countries like Nigeria and Kenya,
Axis Bank 13Oct apart from South Africa and Sri Lanka, are
Axis Bank has received still in the embryonic stage.
Reserve Bank of India's ATM Facility 14Oct
nod to set up a Customers of regional rural banks, urban co-
subsidiary in the UK. It has also got the operative banks and other co-operative
central bank's permission to upgrade its banks will be able to withdraw cash and
presence in Shanghai from a representative make balance enquiries at any of the 63,000-
office to a branch. Currently, Axis Bank has odd ATMs across the country in a few
a branch in Singapore, Dubai and Hong months.
Kong besides a representative office in The National Payments Corporation of India
Shanghai. (NPCI) will allow standalone RRBs and co-
Small Bank 14Oct operative banks with core banking solution
With the Reserve Bank of India giving it platform and an ATM switch to be
approval to open offices in nine international connected to the National Financial Switch
locations, Canara Bank expects to ramp up through a sponsor bank which is already
its overseas operations. The third largest linked to the NFS.
public sector bank is open to buying a small Mainstream banks can enrol RRBs and co-
bank in the US. operative banks as their sub-members for
S. Raman, Chairman and Managing offering the customers of the latter all-India
Director, Canara Bank, told that to expand ATM connectivity after profiling them for
in the international market, it would look at potential risks.
acquiring a small bank in the US essentially Meanwhile, NPCI handled 111 million
to have a foot hold. However, he clarified transactions during September against 100
that there are no immediate plans to take million transactions in August.
over a US bank. It will have to work on two The rise in volume of transactions was
criteria for a takeover to happen first, the mainly due to increase in the number of
ATMs in the NFS network (from 61,000 government in July, 2008, acquired the
plus to 63,000), dissolution of bilateral RBI's entire 59.73 per cent stake in State
agreements between banks and increase in Bank of India at over Rs.35,531 crore.
consumers' The move was in line with the Narasimham
spending. Committee II report which held that it was
Stake in Nabard inconsistent with the principles of effective
15Oct supervision that the regulator was also an
Amid debate over owner of a bank.
whether the Reserve Bank of India should On the same principle, it was decided that
hold stake in lending institutions or only be the government would also acquire RBI's
a regulator, the central bank has sold almost shareholding in NHB and Nabard.
all its holding in the National Bank for Supplementary demand
Agriculture and Rural Development For buying stake of RBI in Nabard and
(Nabard), to the Central Government. NHB, the
The RBI divested its stake amounting to government had
Rs.1,430 crore in Nabard on October 13. earlier this year,
With this, the RBI's holding in Nabard has provided for Rs.1,900
come down to one per cent of crore in the first
shareholding in the bank. The Central supplementary
Government now holds 99 per cent of the demand for grants.
stake. The buying of stake in these institutions
The move comes more than three years after would enable the government to have
the central bank sold its entire stake in the greater say in the boards of these institutions
country's largest lender State Bank of India and issue directions to meet its credit
to the government. objectives for targeted areas.
The RBI held 72.5 per cent of equity in Index for no frills Accounts 15Oct
Nabard, amounting to Rs 1,450 crore. The Credit Rating and Information Services of
remaining shareholding worth Rs.550 crore India (Crisil) is developing an index to
was with the Centre. analyse the management of over 5 crore no
The Union Cabinet, in May 2008, had frills accounts operated by Indian banks in
approved the RBI's proposal to transfer its rural and semi-urban areas.
share holding in Nabard to the government. There are about 5 crore no frills accounts
Now, the only major institution where the in the country and the operational nature
RBI holds a stake is the National Housing of these accounts varies from bank to
Bank (NHB). The central bank holds 100 bank. In order to assess the operational
per cent stake in the housing finance nature of the banks, Crisil is developing an
regulator. index for financial institutions on how much
Nabard is the apex rural and farm these accounts are operational," Department
development bank, whose role is to promote of Financial Services Secretary D Gopalan
credit growth in these areas. told .Gopalan said, "When the government
In its biggest ever cash purchase, the evaluates the bank's performance, the index
developed by Crisil would be applied and it banks in the state has jumped from Rs 7205
will assess how these in 2005-06 to Rs 17,438 by the end of 2008-
no frills accounts are 09, a growth of 58.68 per cent. The national
and how they are average of per capita deposits at the
operational." commercial banks stood at Rs 20,146 by the
About 38,000 end of 2008-09.
habitations in rural The total amount of bank deposits in the
and semi-urban areas state has also surged from Rs 33922.72 crore
are covered under the banking in 2005-06 to Rs 70,680.66 crore by the end
correspondent’s model, while plans are of 2008-09, an increase of 107.47 per cent.
being unfolded to cover another 73,295 The commercial banks had the largest share
habitations, hitherto uncovered. of deposits by the end of 2008-09 at 95.87
SBI 16Oct per cent with the balance 4.13 per cent share
State Bank of India (SBI) will raise up to Rs of the cooperative banks.
1,000 crore through a lower Tier-II bond Among the commercial banks, the total
issue, primarily being hawked to retail deposits of public sector banks stood at
investors. Rs 54817.30 crore, that of private banks
This is part of the bank’s Tier-II offering at Rs 6390.03 crore, cooperative banks at
and will comprise an issue of Rs 500 crore Rs 2914.30 crore and Regional Rural
with an option to retain oversubscription up Banks (RRBs) at Rs 6558.93 crore.
to Rs 500 crore for issue of additional bonds Another interesting trend is the declining
totalling Rs 1,000 crore. CD (Credit Deposit) ratio among the public
The bank will launch the bond issue for sector commercial banks in the state. The
retail investors next week, and will have a CD ratio of 25 PSU banks operating in the
range of such products in future. state has plunged from 67.3 per cent in
This bond issue comes as a part of our Tier- 2006-07 t 56.32 per cent by the end of 2008-
II offerings and to some extent will help the 09.
bank meet its capital The CD ratio of the private sector banks is
requirements. It will also even lower at 53.24 per
increase our ability to cent and that of RRBs at
raise long-term resources. 53.13 per cent. The
The bonds will be issued overall CD ratio of all the
in two series and will commercial banks,
have a maturity of 10 years and a face value including the PSU banks,
of Rs 10,000. private sector banks and RRBs is 61.65 per
Per capita Bank Deposits 16Oct cent by the end of 2008-09.
The per capita deposits at commercial banks Panel for MFIs' 16Oct
in Orissa has recorded a consistent increase The Reserve Bank of India (RBI) has
from 2005-06 to 2008-09 and is fast formed a sub-committee to look into the
catching up with the national average. functioning of microfinance institutions
The per capita deposit of the commercial (MFIs) and what bearing they have on its
policy to take further action. Circle may approach IRDA for prior
According to RBI Governor Duvvuri approval of further division in the circle as
Subbarao, we have discussed the evolving separate units to obtain licence to act as
situation of the MFI sector and as part of our corporate agent in view of the large
responsibility to look at what is happening population.
in the financial sector. According to him, a The DOP has divided the whole country into
vast number of MFIs don’t come under the 22 postal circles for providing postal
purview of RBI and the apex bank does not services.
have an MFI category of non-banking The Insurance Regulatory and Development
financial intermediaries. As a part of priority Authority (IRDA) allowed each circle to tie
sector lending, MFIs mobilise funds under up with two non-life insurance companies,
the realm of organised lending. According to two life insurance companies; one
him, MFIs are alternatives to private agricultural insurance company and one
moneylenders in the unorgansied sector and stand alone Health Insurance Company for
the apex bank is marshalling this. this purpose.
These bonds are not redeemable at the Corporate agents act as
option of the bondholder or without the insurance agent for insurers
consent of the Reserve Bank of India. The and procure business on
bonds are proposed to be listed on the behalf of the insurance
National Stock Exchange of India. companies through its
The bonds will be open for subscription executives.
from October 18. The Gold ATMs
issue closes on October 18Oct
25, with an option to Indians might soon get a chance to buy gold
close earlier in the event from ATMs, as Germany's Ex Oriente Lux
of oversubscription. The AG is in talks with Indian entities for setting
allocations of all up gold dispensing automated machines in
categories will be made on a first-come- India.
first-serve basis. Ex Oriente Lux AG, which also operates an
Insurance Policies 18Oct online shop for the yellow metal, is the
Post offices can now distribute insurance maker of gold vending machines.
products with IRDA, allowing each circle of The Gold ATM, known as 'Gold to go',
the Department of Post (DOP) to act as a made its debut in Abu Dhabi earlier this
corporate agent of insurers. year.
Each Circle of India post should be treated a It can issue up to ten different products and
separate unit in order to grant independent their real time prices are updated every ten
corporate agent licence with various minutes.
insurers," insurance regulator IRDA said Other features include the option to see a
while granting permission to postal circles to selected product before making the purchase
distribute insurance products. decision.
In the case of metropolitan areas, head of Currently, such ATMs are there in four
countries the UAE (Abu Dhabi), Germany, returns bond on October 18.
Italy and Spain. Most of these machines are The SBI bond, which is available for short
located in Germany. period, is expected to produce high returns.
Divestment 19Oct The SBI bonds are available for two fixed
The Centre aims to raise a minimum Rs maturity periods of 10-year and 15 year. The
45,000 crore within a year by divesting stake bond is issued at the point of 9.50 percent
in about half-a-dozen public sector units to for 15 years and 9.25 percent for 10 years.
pump funds into social and infrastructure P N B JV 19Oct
sectors. Efforts are on to raise at least Rs Punjab National Bank said the Reserve Bank
45,000 crore by offloading shares in several of India (RBI) has issued certificate of
PSUs in a year's time for investment in registration to the former's non-banking joint
education, health and other social sectors. venture (JV) firm India Factoring & Finance
The government in the Budget for 2010-11 Solutions.
had proposed to raise around Rs 40,000 The state-run lender had entered into JV
crore through divestment this fiscal. It has agreement with three firms - FIM Bank
mopped up over Rs 1,000 crore by divesting (Malta), Banca IFIS, Italy and Blend
stake in Satluj Jal Vidyut Nigam, and around Financial Services - on November 4, 2009.
Rs 1,000 crore through Engineers India The JV would provide
FPO. At least six schemes, including the factoring, forfaiting and
Rajiv Gandhi Gramin Vidyutikaran Yojana trade finance solutions.
(RGGVY), National Rural Health Mission Report on MFIs
(NRHM) and Mahatma Gandhi National 20Oct
Rural Employment Guarantee scheme, Amid growing criticism
would be funded by the money generated over the use of coercive ways of micro
thus. finance institutions (MFIs) to recover loans,
Funds are also required for infrastructure the Reserve Bank of India said its sub-panel
development, technological modernisation looking into the functioning of such lenders
and rural development. would submit its report in three months.
While CIL's IPO seeks to generate at least The sub-committee will submit its report in
Rs 15,000 crore, there are proposals of Rs three months.
8,000 crore through public offer of equities The RBI has set up a sub-committee of the
in Powergrid Corporation, Rs 22,000 crore Central Board of Directors of the central
in Indian Oil Corporation, Rs 4,000 in SAIL bank to study the issues and concerns of the
and Rs 10,000 in ONGC. microfinance sector, including interest rates
The government had charged by the lenders in this area. Y. H.
raised Rs 25,000 crore Malegam, a senior member on the Central
through stake sale in Oil India, NMDC, Board of Directors of the Reserve Bank of
REC and NTPC in the last fiscal. India, will chair the sub-committee.
SBI Bonds 19Oct The RBI further said that there had been
Country’s leading private sector bank State some concerns expressed in the media over
Bank of India (SBI) has introduced elevated high interest rates, coercive recovery
processes and multiple lending practised by times to be used in periods of stress,

some microfinance institutions. minimum global liquidity standards and
The Reserve Bank regulates only those stronger standards of supervision, public
MFIs which are registered with it as non- disclosure and risk management, are some
banking finance companies (NBFCs). of the other facets.
Although the registered companies cover Wellink added that these fundamentals “will
over 80 per cent of the microfinance substantially reduce the probability and
business, in terms of number of companies severity of banking crises in the future and
they constitute a small percentage of the help safeguard the financial stability and
total number of MFIs in the country. economic growth and reduce the exposure to
Basel Committee the public sector and the taxpayers.
20Oct The Finance Minister, Mr Pranab
Ahead of the meeting Mukherjee, and the Reserve Bank of India
of G-20 Finance Governor, Dr D. Subbarao, will attend the
Ministers and Central G-20 Finance Ministers and central bank
Bank governors at Gyeongju, South Korea, governors meeting on October 22-23 in
the Basel Committee on Banking South Korea. At the end of meeting, the
Supervision met in Seoul to finalise its Basel Committee also released a report on
reforms programme for ensuring systemic its comprehensive regulatory reform
stability of the global financial architecture. programme to address the lessons the crisis.
The Chairman of the Basel Committee The report said the depth and severity of the
and President of the Netherlands Bank, crisis were amplified by weaknesses in the
Nout Wellink, said that “the Basel banking sector such as excessive leverage,
Committee reforms address the identified inadequate and low-quality capital and
weaknesses of the pre-crisis banking sector, insufficient liquidity buffers. It said the
thus delivering on the G-20 mandate given crisis was exacerbated by a procyclical de-
at the Pittsburgh summit to develop a more leveraging process and the inter-
resilient banking sector.” connectedness of systemically important
The new global standards to address both financial institutions.
firm-specific and broader systemic risks In response, the Committee's reforms seek to
have been referred to as ‘Basel III.' improve the banking sector's ability to
The building blocks of Basel III include absorb shocks arising from financial and
higher quality of capital to ensure that banks economic stress, whatever the source, thus
can better absorb the types of losses such as reducing the risk of spill over from the
those associated with this past crisis, better financial sector to the real economy.
coverage of risk, especially for the capital The proposed reforms, strengthen bank
market activities, an internationally level or micro-prudential regulation,
harmonised leverage ratio to constrain which would help raise the resilience of
excessive risk-taking and to serve as a individual banking institutions in periods
backstop to the risk-based capital measure. of stress.
Capital buffers that should be built in good The reforms also have a macro-prudential
remit, addressing system-wide risks, which 188088

can build up across the banking sector, as US 1056043 1605296
well as the procylical amplification of these -549253
risks over time. “Clearly, these micro and JAPAN 58079 551960
macro prudential approaches to supervision 28759
are inter-related, as greater resilience at the HOLLAND 498330 445496
individual bank level reduces the risk of 52834
system wide shocks. FRANCE 484725 559817
As the Committee's reforms would -75092
transform the global regulatory framework ITALY 405777 412721
and promote a more resilient banking sector, -6944
it has undertaken a comprehensive BELGIUM 369854 351945
assessment of Basel III's potential effects, 17909
both on the banking sector, and on the KOREA 363534 323085
broader economy. 40449
This work corroborates that the transition to UK 352491 481707
stronger capital and liquidity standards is -129216
expected to have “a modest impact on INDIA 162613 249590
economic growth,” while the long-run -86977
economic benefits substantially outweigh India has the world's third largest
the costs associated with higher standards. merchandise trade deficit after the US and
Going forward, the Basel Committee will the UK, according to data from the World
focus its efforts on the implementation of Trade Organisation's just-released
the Basel III framework and related International Trade Statistics 2010.
supervisory sound practice standards. In 2009, the country's trade deficit – arising
Alongside, it is also conducting work in from its import of goods being more than its
areas covering review of the trading book, exports – amounted to $87 billion, against
the use and impact of external ratings in the $549 billion for the US and $129 billion for
securitisation capital framework, policy the UK.
response to systemically-important banks The Commerce Ministry has projected
and the treatment of large exposures and India's trade gap to touch $135 billion
enhanced cross-border resolution. during 2010-11, though this figure pertains
Trade Deficit 22Oct to the fiscal year ended March 31, 2011,
TRADE BALANCE OF TOP 10 whereas the WTO data is based on calendar
EXPORTERS AND INDIA IN 2009 year.
If the $135 billion projection holds for the
COUNTRY EXPORT IMPORT calendar year as well and there is no change
BALANCE to the UK's $129 billion number both not
CHINA 12O1534 1005688 wholly unrealistic assumptions – India's
195846 trade deficit would end up being next only to
GERMANY 1126383 938295 the US.
The country's $87-billion deficit in 2009 is, WTO Meet 22Oct

incidentally, lower than The World Trade Organisation's eighth
the record $126 billion for ministerial summit will take place from 15th
the previous calendar to 17th September, 2011, in Geneva, despite
year. That year saw India the continuing uncertainty over when Doha
occupying the No. 4 Development Agenda (DDA) trade
position, behind the US negotiations will be concluded.
($882 billion), the UK ($173 billion) and At a meeting of the WTO's powerful
Spain ($139 billion). But since then, India General Council, which oversees day-to-day
has overtaken Spain, which registered a business of the trade body, Chair
much bigger contraction in foreign trade on Ambassador John Gero of Canada
account of the global economic downturn. announced the dates for the eight meeting.
The impact of the downturn can be seen The last ministerial meeting took place in
from the accompanying table, with every December, 2009, in Geneva.
major economy experiencing a decline in The current WTO Chief, Pascal Lamy, who
both exports and imports in 2009. was then the European Union Trade
The end-result has been a reduction in trade Commissioner, and present World Bank
surpluses (of countries such as China, President Robert B Zoellick, who was then
Germany, Saudi Arabia and Russia) as well the United States Trade Representative,
as trade deficits (of the US, the UK, Spain worked overnight to launch the Doha
and India). Round.
In 2009, India ranked 21st among the Credit Agreement 25Oct
world's exporters of goods, while being 14 India has decided to export 5 lakh tonnes of
in imports. The picture was, however, rice and wheat to Bangladesh despite ban on
different in services, where the country was outward shipments of
placed at No. 12 in exports. At $87.43 the foodgrains. Both
billion, its exports were higher than imports nations have also
of $79.77 billion, thereby translating into a agreed to establish
$7.66 billion surplus on this account. ‘Border Haats' along
Moreover, the WTO's $87.43 billion the Meghalaya-Bangladesh border and open
estimate covers only ‘commercial services'. the Chittagong and Mongla ports to boost
They do not include private remittances, trade ties.
which stood at $53.90 billion for the fiscal The two countries have signed $1 billion
ended March 31, 2009. If this figure – Line of Credit agreement and some
representing export of ‘manpower' – is important pacts for power transmission.
added, India's services exports would cross Apart from the Line of Credit, the bulk
$140 billion. That would push it closer to power transmission agreement and an MoU
the US ($474 billion), the UK ($233 billion), between NTPC and the Bangladesh Power
Germany ($227 billion) and France ($143 Development Board have also been signed
billion), though these, it may be noted, in the power sector.
exclude private transfers. The two-way trade had the potential to touch
$5 billion in the next two years from the If you look at past experience, the complaint
current $3 billion. There is also from the general investing public and the
arrangements for supply of 3-lakh tonnes of issuers has been that the retail quota is not
par-boiled rice and 2-lakh tonnes of wheat being subscribed fully. The issue before the
from India to Bangladesh were being put in board was that the limit had been fixed long
place and that the supply would take place back. If you take inflation into account, it is
soon. justification enough (for raising the limit),”
Out of the quota of duty free export of 80- said Sebi Chairman C B Bhave.
lakh pieces of textiles from Bangladesh to The regulator, however, did not make any
India, around 17-lakh pieces could be changes in the quota of shares reserved for
exported for the last quarter ending retail investors in public issues.
December 2010. A fresh quota of 80-lakh Market players were divided in their opinion
pieces of textiles would be available from on the raise in the retail investor limit.
January 2011. “Sebi’s move limit is better late than never.
Both sides had recently visited several land The market regulator approved an additional
customs stations to review the state of set of disclosures for life insurance
infrastructure. India was now constructing companies, based on the recommendations
seven integrated check posts and eight land of the Sebi Committee on Disclosures and
custom stations under a $125-million Accounting Standards.
scheme. The two sides were also in MARKET REGULATOR
discussion to construct the bridge across # Enhances retail application limit to Rs 2
Feni to begin trade between Sabroom and lakh from Rs 1 lakh across all issues.
Ramgarh. # Disclosures of risk factors specific to IPOs
Armoured Vehicles 25Oct by insurance companies.
Jaguar Land Rover (JLR) has unveiled the # Tightens preferential allotment framework
armoured range of its Range Rover and for promoters
Discovery sports utility vehicles (SUVs) that # Mandatory for companies to pre-announce
would be priced at dates for dividend payment and bonus shares
Rs.4.75 crore and # QIB status to insurance funds set up by
Rs.3.75 crore, Department of Posts
respectively. The Tata Insurance companies which want to take the
Motors-owned initial public offer route will have to
company is also looking at launching the disclose the risk factors specific to life
armoured version of the Jaguar XJ sedan, insurance entities and provide a glossary of
which could be priced around Rs.5.50 crore. terms and disclosures specific to the sector.
Insurers have been exempted from
Retail Limit 26Oct appointing a monitoring agency and
The Securities and Exchange Board of India disclosure of a disclaimer clause of the
(Sebi) has increased the application limit for Insurance Regulatory and Development
retail investors to Rs 2 lakh, from Rs 1 lakh Authority (Irda) in the offer document.
at present. Merchant Acquiring Biz 26Oct
State Bank of India (SBI) has said it will training and maintenance, to name a few.
soon start facilitating payments through The State Bank Group presently has over
debit or credit cards at retail outlets and was 21,000 ATMs across the country and has
finalising the shareholding pattern with issued over 60 million debit cards.
foreign partners. Banks Borrowings 26Oct
According to SBI Chairman O P Bhatt we Banks borrowed Rs 89,900 crore from the
would be finalising the equity ratio with the Reserve Bank of India’s (RBI’s) repo
joint venture (JV) partner soon, post which window to cope with the liquidity shortage.
merchant acquiring would Mutual funds have preferred to remain on
become operational. the sidelines due to tight liquidity and as
Merchant acquiring most are eyeing the Reserve Bank of India’s
involves the facilitation of policy.
payments through debit or Fund houses are mostly restricting their
credit cards at retail investments to three-month papers on slight
outlets. inflows in their liquid
SBI is planning to place about 1.5 lakh point schemes.
of sale (PoS) terminals for debit and credit Three-month CDs
card payments across the country. It plans to were dealt at 7.6-7.8
deploy six lakh of these terminals in the first per cent, up from 7.5-
five years of its operations. 7.7 per cent. Three-month commercial
The Reserve Bank of India (RBI) has papers were dealt at 8-8.1 per cent, up from
already approved the setting up of a wholly- 7.9-8 per cent.
owned subsidiary for the bank to conduct One-year CDs were quoted at 8.45-8.65 per
merchant acquiring in the name of SBI cent, as against 8.4-8.5 per cent.
Payment Services. Online Shopping 26Oct
US-based Elavon Incorporation and Visa Shopping online through foreign websites
International are the JV partners of SBI. can come a cropper with the Reserve Bank
The business penetration of the new line of insisting on an additional password for all
operation is envisaged on a pan-India scale, kinds of online transactions.
having metro, urban, semi-urban and rural The requisition of an additional
centres. Last year, the bank had floated a authentication hampers online shopping
Request For Proposal (RFP) for the selection when Indian credit/debit cards are used on
of JV partners for merchant acquiring foreign websites and also when foreign
business. cards are used on Indian sites.
The business would include acquiring bank In a notification to the banks,
identification numbers from schemes, as RBI made it clear that it's not
well as managing services for PoS terminals, going to compromise on the
among others. security of online
The managed services would include transactions. It had on
deployment of PoS terminals at customer August 1, 2009, made a
locations, their replacement, merchant second factor or an additional authentication
mandatory for online transaction using The Committee presented its report to the
credit and debit cards. Before that, users government on June 30 this year, making a
required only the 16-digit card number and number of recommendations on the HR
the CVV number for online shopping. issues.
Bank Vacancies 27Oct Canara Bank 27Oct
The PSBs have a tentative plan of The third largest public sector bank Canara
recruitment of around 34,000 officers and Bank expects to recruit around 4,000 people
51,000 clerks during the next three years for by June next year.
2010-13," the government said in a S. Raman, Chairman and Managing
background paper for Economic Editors' Director, Canara Bank, told that human
Conference prepared by Finance Ministry. resource would be a challenge with about
The system of recruitment 5,000 employees retiring in the next three to
through Institute of four years. At present,
banking personnel Canara Bank employs
selection (IBPS) will be 42,363 people. The bulk of
transparent, speedier and the recruitment would be in the clerk grade -
cost effective. around 2,000 employees - and 1,00
The government also informed that it has employees in the officers' cadre.“Currently,
been decided to entrust IBPS the we have about 40 Chartered Accountants but
responsibility to conduct the common would require more for specialised areas. At
recruitment examination for PSBs. present, business per employee is at Rs 10.6
The IBPS, established in 1984, is an crore in the second quarter of 2010-11 from
autonomous body engaged in recruitment of Rs 8.4 crore last year. Profitability per
personnel and internal promotion in banks employee jumped by Rs 3 lakh to Rs 10 lakh
and financial institutions. in the second quarter of 2010-11 against Rs
During the year 2009-10, IBPS conducted 7 lakh a year-ago, which the bank expects to
test for around 60 lakh candidates at 125 enhance further.
centres across the country for recruitment in Canara Bank expects to hire around 700
PSBs. investment officers who would sell
The Indian Banks' Association (IBA) had insurance and mutual fund products.
recommended to the government that a Economic Pact 27Oct
common recruitment programme in public India and Malaysia has announced
sector banks should be conducted by the completion of negotiations on the
IBPS. Comprehensive Economic Cooperation
In order to professionalise the human Agreement (CECA), saying it will
resources of the state-run banks and align significantly transform their bilateral
them with the new and ever changing engagement.
requirements of the banking industry, the Indian Prime Minister Manmohan Singh and
government had constituted a committee his Malaysian counterpart Najib Tun Razak
under the chairmanship of A K Khandelwal, said the agreement will be signed by Jan 31,
former Chairman, Bank of Baroda. 2011, and come into force July 1.
Razak said the two countries had concluded Top Science Official 19Oct
"very productive" bilateral discussions. Indian-American academician and IIT
He told a joint news conference that when Madras alumnus, Subra Suresh was sworn in
he visited New Delhi in January this year, as the director of the National Science
his desire was to make Manmohan Singh's Foundation (NSF,) the top US science body
return trip "equally significant and historic". that leads scientific research in the country.
Reliance Power 29Oct Nominated by US President Barack Obama,
Reliance Power announced that it has given Suresh as Director will lead the USD 7.4
a $8.3-billion contract to Shanghai Electric billion independent federal agency that
Group Co Ltd (SEC) for supply of 36 coal- supports all fields of science and
fired thermal power generation units, spare engineering research, as well as a wide span
parts and related services over a 10-year of educational programmes that reach more
period. than 2,000 institutions across the US.
This takes the total deal size between "We are very grateful to have Subra taking
Reliance Power and this new task," Obama said in his remarks at
the Chinese power the White House Science Fair after Suresh
equipment maker over was sworn in yesterday as the 13th NSF
the past couple of director by John Holdren, Obama's science
years to $10 billion. advisor. "He has been at MIT and has been
SEC will supply boiler, turbine and leading one of the top engineering
generator packages for 30,000 MW capacity programmes in the country, and for him now
of coal-based power at six plants including to be able to apply that to the National
the 3,960-MW ultra mega power project at Science Foundation is just going to be
Krishnapatnam, the 5,940-MW project in outstanding," he said.
Chitrangi, and the 3,960-MW project in "So we're very grateful for your service," he
Tilaiya. said acknowledging the contribution of
Reliance and SEC have also agreed to set up Suresh in the field of science and
a `centre of excellence' in India that will technology. The swearing in ceremony took
work towards deployment of ultra-super place in the Secretary of War Ceremonial
critical technology being developed by SEC. Room of the Eisenhower Executive Office
Liquidity Adjustment 31Oct Building of the White House.
Banks have borrowed more than Rs 11,000 Suresh was confirmed by the US Senate on
crore from the Reserve Bank of India under September 30, for a six-year term. Suresh,
the special liquidity adjustment facility. 54, served as dean of the engineering school
RBI received 17 bids for Rs 11,025 crore and as Vannevar Bush Professor of
under the two-day repo auction conducted. Engineering at the Massachusetts Institute of
The RBI had announced this special facility Technology.
as part of its liquidity easing measures. A mechanical engineer, who later became
interested in materials science and biology,
Suresh has done pioneering work studying
the biomechanics of blood cells under the
influence of diseases such as malaria. episodes in the days leading to this

From 2000 to 2006, Suresh served as the spectacular event were forgotten and the
head of the MIT Department audience of around 60,000 at the Jawaharlal
of Materials Science and Nehru Stadium carried home memories of a
Engineering. He joined MIT gala evening that presented a fine mix of the
in 1993 as the R P Simmons country's glorious past, a dynamic present
Professor of Materials and a promising future.
Science and Engineering and
held joint faculty appointments in the
Departments of Mechanical Engineering and Most Powerful Women 8Oct
Biological Engineering, as well as the At No. 6: Indra Nooyi, Chairman and CEO,
Division of Health Sciences and PepsiCo, No. 89: Shikha Sharma, CEO and
Technology. MD, Axis Bank, No.92: Chanda Kochhar,
Suresh holds a bachelor's degree from the MD & CEO, ICICI Bank.
Indian Institute of Technology in Madras, a Indian Wealth 10Oct
master's degree from Iowa State University, Wealth in India and the Asia-Pacific region
and earned his ScD from MIT in 1981. is growing faster than that of developed
Suresh was nominated by President Obama economies in line with their higher growth
to become the new NSF director on June 8, rates. According to the Global Wealth
replacing Arden L Bement Jr, who led the Report by the Credit Suisse Research
agency from 2004 until he resigned in May Institute, India's total wealth tripled to $3.5
of this year. trillion (Rs 154 lakh crore) over the last
NSF's budget for 2010 is USD 6.9 billion. decade against the global growth rate of 72
The agency's budget request for 2011 is per cent at $195
USD 7.4 billion, an eight-per cent increase trillion.
over 2010, which supports the President's The report defines
goal of increasing the nation's total public wealth as (value of
and private investment in research and financial assets and non-financial assets
development to at least 3 per cent of the (mainly real estate) minus household debt.
gross domestic product. Going forward, India is expected to almost
double its wealth to $6.4 trillion by 2015
against the 61 per cent global growth rate.
Commonwealth Games 4Oct The report confirms that Asia-Pacific
India switched on its spotlights to display its countries, which now make up the bulk of
new vibrant, energetic and progressive the world's middle class of emerging
avatar providing its guests from the consumers, are driving the growth of the
Commonwealth nations a glimpse of its art world's wealth.
and culture at the opening ceremony of the India, however, has a long way to go as its
Games. total wealth is far behind that of the US
For precisely three hours, all the unsavoury ($54.6 trillion), Japan ($21.0 trillion) and

China ($16.5 trillion). and hunger levels are inversely correlated.

However, while several Indians may top the In South and Southeast Asia, Bangladesh,
world's rich list, wealth in India is India, Pakistan and Timor-Leste are among
distributed very disproportionately and only countries with hunger levels considerably
0.4 per cent of the total adult population higher than their gross national income
owns more than $100,000 (R45 lakh) on an (GNI) per capita.
average. Undernutrition in
Global Hunger Index 11Oct the first two years
India has been ranked 67, way below of life threatens a
neighbouring countries like China and child's life and can
Pakistan, in a new global hunger index by jeopardise physical, motor and cognitive
the International Food Policy Research development. It is therefore of particular
Institute. importance that we take concerted action to
The index rated 84 countries on the basis of combat hunger, especially among young
three leading indicators -- prevalence of children.
child malnutrition, rate of child mortality, It further said that the global food security is
and the proportion of under stress. Although the world's leaders,
people who are calorie through the first Millennium Development
deficient. Goal, adopted a goal of halving the
China is rated much proportion of hungry people between 1990
ahead of India at the and 2015, "we are nowhere near meeting
ninth place, while Pakistan is at the 52nd that target."
place on the 2010 Global Hunger Index, The 2010 world Global Hunger Index (GHI)
released by the International Food Policy shows some improvement over the 1990
Research Institute (IFPRI) in association world GHI, falling from 19.8 points to 15.1
with a German group Concern Worldwide or by almost one-quarter. The index for
and Welthungerhlife. hunger in the world, however, remains
In India, the high Index scores are driven by serious.
high levels of child underweight resulting In recent years, however, the number of
from the low nutritional and social status of hungry people has actually been increasing.
women in the country, the report pointed In 2009, on the heels of a global food price
out, adding that India alone accounts for a crisis and in the midst of worldwide
large share of the world's undernourished recession, the number of undernourished
children. peopled surpassed one billion, although
India is home to 42% of the world's recent estimates by the UN body Food and
underweight children, while Pakistan has Agriculture Organisation suggest that the
just 5%. number will have dropped to 925 million in
Among other neighbouring countries, Sri 2010.
Lanka was at the 39th position and Nepal Gender Gap Index 13Oct
ranked 56 by index. Bangladesh listed at the Europe's Nordic countries remain global
68th position. The economic performance leaders in the campaign to close the gender
equality gap, according to a study released childcare... and financial services,

that said women could play a key role in particularly in emerging
leading the world out of economic crisis. markets."
Iceland, Norway and Finland topped the Lesotho rose two places
World Economic Forum (WEF) annual to eighth in the index. It
gender gap index, while Pakistan, Chad and had a top ranking for
Yemen were bottom of the 134-nation education and health and
rankings. was the highest-ranked among the 134
The report -- which assesses how equitably countries on the economic participation sub
income, resources and opportunities are index.
distributed between the sexes -- gave New Zealand at fifth and the Philippines, at
particular praise to the Philippines in Asia ninth, led the Asia-Pacific nations.
and Lesotho in Africa, which were both in The Philippines is the only country in Asia
the world top 10. this year to have closed the gender gap on
The United States surged from 31st last year both education and health, and is among
to 19th, while France dropped more than 25 only eight countries in the world to have
places to 46th, mainly because of its "poor done so.
performance" in women's political The United States entered the index top 20
empowerment. for the first time mainly because of
Many of the world's other top economies education improvements, with women
also lag. Japan is 94th and China 61st. outstripping men in higher education.
Britain was unchanged in 15th place, but China fell one place to 61st, which the WEF
Germany fell for the fifth straight year to blamed on lower scores on labor force
13th. participation, perceived wage equality and
The report said Iceland had made new gains the lower number of reported births of girls.
"because of an increase in the number of China becomes the second-last ranking
women ministers, a near gender-balanced country on the health and survival sub index
parliament and the continued tenure of a (133), the result of its disproportionate sex
female Prime Minister. ratio at birth, which contributes to China's
The only blemish was "a significant 'missing women' phenomenon.
difference between men's and women's
salaries."
It said new research on the growing "power Commanders’ Conference 25Oct
of the purse" showed how women will be The Army Commanders’ Conference will
among the drivers of post-crisis growth. begin in New Delhi. Defence sources say,
"The combined impact of growing gender the five-day event will review the security
equality, the emerging middle class and situation, emerging challenges, options and
women's spending priorities will lead to strategies.
rising household savings rates and shifting Issues pertaining to operational logistics to
spending patterns that are likely to benefit include infrastructure development and
sectors such as food, healthcare, education, modernization are the other highlights. The
deliberations will also focus on training of

the forces for attaining a high state of RESEARCH INSTITUTE
combat readiness. It is likely to address CECA- COMPREHENSIVE ECONOMIC
issues impacting enhancement of overall COOPERATION AGREEMENT
operational efficiency. Matters pertaining to
career progression and cadre management
will also be discussed.
9OCT- WORLD POSTAL DAY
The conference will commence with the
12 OCT-WORLD SIGHT DAY
address by Defence Minister AK Antony. It
17OCT-INTERNATIONAL POVERTY
is to be chaired by Chief of the Army Staff,
ERADICATION DAY
General VK Singh. The Army Chief will
24OCT-UNITED NATIONS DAY
also present the COAS flight Safety Trophy
and release the book, ‘Military Quotations
and Humour in Uniform’.
*CONVERSATION WITH MYSELF-
nuclear energy, security, economic issues.
NELSON MANDALA
Economic Editors’ Conference 25Oct
*THE FEAST OF THE GOAT-MARIO
Finance Minister Pranab Mukherjee will
VARGAS LLOSA
inaugurate the two-day annual Economic
*HARMONY- PRINCE CHARLES
Editors' Conference in New Delhi. It will
*GLOBALIZATION AND
provide the editors a comprehensive view of
SUSTIANABLE GOOD GOVERNANCE-
the overall economy in the country.
PERMANAND SINGH
About 300 editors and financial writers are
likely to attend the event.
NPCI- NATIONAL
PAYMENTS
CORPORATION
OF INDIA
GPON-GIGABYTE
PASSIVE OPTICAL
TECHNOLOGY
FGFA- FIFTH GENERATION FIGHTER
AIRCRAFT
NYF- NATIONAL YOUTH FESTIVAL
UNSC- UNITED NATIONS SECURITY
COUNCIL
IFPRI- INTERNATIONAL FOOD POLICY

OCT Issue

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

OCT Issue

Uploaded by

Copyright:

Available Formats

CURRENTAFFAIRSMASTER.

Copyright © 2010 Current Affairs Master. All Rights Reserved.

conductor, graphene is suitable for The awards were established by Swedish

Copyright © 2010 Current Affairs Master. All Rights Reserved.

Copyright © 2010 Current Affairs Master. All Rights Reserved.

economists, analysts, outstanding contributions by very young

Copyright © 2010 Current Affairs Master. All Rights Reserved.

Leadership Award include Alan Mulally of Director.

Copyright © 2010 Current Affairs Master. All Rights Reserved.

Copyright © 2010 Current Affairs Master. All Rights Reserved.

Copyright © 2010 Current Affairs Master. All Rights Reserved.

Copyright © 2010 Current Affairs Master. All Rights Reserved.

Copyright © 2010 Current Affairs Master. All Rights Reserved.

Copyright © 2010 Current Affairs Master. All Rights Reserved.

next year in collaboration with the State and

Copyright © 2010 Current Affairs Master. All Rights Reserved.

Phalcon early warning Centre to look into the conduct of the

Copyright © 2010 Current Affairs Master. All Rights Reserved.

Copyright © 2010 Current Affairs Master. All Rights Reserved.

Copyright © 2010 Current Affairs Master. All Rights Reserved.

a world record. It will, however, travel woodlands traditionally found around

Affairs has allowed a discount of 5 per cent

processes and multiple lending practised by times to be used in periods of stress,

remit, addressing system-wide risks, which 188088

The country's $87-billion deficit in 2009 is, WTO Meet 22Oct

influence of diseases such as malaria. episodes in the days leading to this

Copyright © 2010 Current Affairs Master. All Rights Reserved.

China ($16.5 trillion). and hunger levels are inversely correlated.

equality gap, according to a study released childcare... and financial services,

deliberations will also focus on training of

Copyright © 2010 Current Affairs Master. All Rights Reserved.

You might also like