National Affairs

January 2011 NATIONAL AFFAIRS RBI’s Mid-Term Policy Review
On January 25, 2011, the Reserve Bank of India raised its policy interest rates by a quarter percentage point, squeezing money supply again in the economy in its battle to control price rise. It also upped its inflation forecast, underlining a grim posture. The RBI raised the repo rate, at which it lends to banks, by 25 basis points to 6.5%, while the reverse repo, at which it takes bank funds, rose by the same measure to 5.5%. Such squeezes are aimed at making loans costlier to control demand, and thus, inflation. The RBI kept options open for a further squeeze on rates, even as it maintained that GDP growth would be a strong 8.5% in 2010-11, although it might ease the following year. It revised up the benchmark inflation estimate based on wholesale prices to 7.0% at endMarch from 5.5%. “Inflation stemming from structural demand-supply mismatches in several non-cereal food items such as pulses, oil-seeds, eggs, fish, meat and milk is likely to persist till supply response kicks in," said the RBI.

Rural job Plan turns five but a lot needs to be done
The Mahatma Gandhi National Rural Employment Guarantee Act, UPA’s flagship aam admi scheme, turned five on February 2, 2011. However, more than 30% of the rural India working under the right-to-work act continues to receive wages below the guaranteed minimum as per the minimum wages act. On January 14, the Ministry of Rural Development issued a notification revising the wage rates under the MNREGA from Rs 100 per day to between Rs 117 and Rs 181 (17-30 % hike) in different States. The revision under Section 6(1) of the 2005 Act, coming in wake of inflationary pressures on the poor, adjusts the wages by indexing it to the Consumer Price Index of Agricultural Laborers (CPIAL). Though the Ministry claims the revision takes NREGA wages above the minimum wages in 26 States and Union Territories, analysis shows the other eight States that continue getting less than minimum wages constitute 1.3 crore households or 31% of the total 4.1 crore households provided work till January 31, 2011. The eight include smaller States such as Goa and Mizoram, which have less number of workers under the scheme. But, the States also include the two showpieces under MNREGA—Andhra Pradesh and Rajasthan—that brought in reforms like social audit, post office-bank payments into the mother of all schemes with a budget allocation of Rs 40,100 in 2010-11.

Though numerous villages, like Saru in Udaipur district of Rajasthan, have benefited from MNREGA, the average they receive is under Rs 100 a day, forcing many to go in search of work as far as Ahmedabad, Surat where they Rs 200 to Rs 250 per day.

Srikrishna panel report
The Justice B.N. Srikrishna Committee report was made public on January 6, 2011. It has strongly advocated maintaining united Andhra Pradesh along with creation of statutory Telangana Regional Council to address the core socio-economic concerns of the backward region. “This is the most workable option in the given circumstances and in the best interest of the social and economic welfare of people of all the three regions in the state,” the committee said in its 500-page report. The five-member panel was set up in February 2010 to examine the competing demands for carving out a separate Telangana State and maintaining the status quo. After an elaborate exercise involving interactions with various groups, field visits and examining over 2.50 lakh petitions, the committee presented a set of six options and discussed their pros and cons in great detail. The stress on maintaining unity formed a common thread that ran through the report. On bifurcation, which has been the single point agenda of Telangana protagonists, the Committee said it was the “second best option” but could be recommended “only in case it is unavoidable and if this decision can be reached amicably among all three regions.” However, the committee warned that division of the State would have repercussions in other regions. “If earlier agitations are anything to go by, this decision will give rise to serious and violent agitations in coastal Andhra and Rayalaseema regions where backlash will be immediate, the key issues being Hyderabad and sharing of water and irrigation resources,” the report said. Elaborating further on consequences of splitting the State, the Committee said: “The division will also have serious implications outside AP. It will give fillip to other similar demands. The matter should also be seen in the larger context of whether a region can be allowed to decide for itself what its political status should be, as that would only create a demand for a great number of smaller States resulting in problems of coordination and management.” The panel said: “We are convinced that the development aspect is of utmost importance for the welfare of all the three regions and could best be addressed through a model that includes deeper and more extensive economic and political de-centralisation.” The OPTIONS —Maintaining status quo but allow economic and political de-centralisation. —Bifurcation of the State into Seemandhra and Telangana; with Hyderabad as a Union Territory. The two States will develop their own capitals in due course of time.

—Bifurcation into Rayala-Telangana and coastal Andhra regions with Hyderabad being an integral part of Rayala-Telangana. —Bifurcation into Seemandhra and Telangana with enlarged Hyderabad Metropolis as a separate Union Territory. This Union Territory will have geographical linkage and contiguity via Nalgonda district in the south-east to district Guntur in coastal Andhra and via Mahboobnagar district in the south to Kurnool district in Rayalaseema. —Bifurcation into Telangana and Seemandhra as per existing boundaries with Hyderabad as the capital of Telangana and Seemandhra to have a new capital.

Historical Timeline
—Andhra, Rayalaseema were part of Madras province. —Telangana was part of the Hyderabad State for 400 years. —In 1953, Andhra and Rayalaseema separated from Madras. —In 1956, Andhra merged with Telangana. —1969: Telangana Praja Samiti was formed. —1972: Jai Andhra movement in Rayalaseema and coastal Andhra. —2000: TDP opposes creation of Telangana. —2001: K. Chandrashekhara Rao forms Telangana Rashtra Samiti (TRS).

Visit of President of Indonesia
History met geography when Indonesian President Susilo Bambang Yudhoyono took the salute as the Chief Guest at India’s 62nd Republic Day parade on January 26, 2011. President Soekarno, whose close friends Jawaharlal Nehru and Biju Patnaik helped defy the Dutch colonial embargoes of the late 1940s that enabled Indonesia gain independence, was the Chief Guest at the founding of the Indian republic, in 1950. President Yudhoyono came to Delhi with a large business delegation and witnessed the signature of a clutch of agreements, including between private enterprises. New investment commitments worth $12 billion were signed, with the Indians looking to put their money in infrastructure projects such as airports, railways and ports. Indian business interest in Indonesia is kindled not only by the fact of its large, 238 million population, and therefore, a large market, but also because it is the gateway to the ASEAN, a region of over 300 million people that spans 10 States from Myanmar to the Philippines. India and Indonesia signed nearly 30 agreements, including an extradition treaty and a mutual legal assistance treaty, and pledged to achieve a bilateral trade target of $ 25 billion by 2015, from about $ 11 billion in 2009-10. The main accords signed by the two sides were: MOU for cooperation in the field of education; MOU on the establishment of biennial trade ministers’ forum; protocol for extension of the MOU on cooperation in marine and fisheries; MOU for the development of urea manufacturing plant in Indonesia; air services agreement; MOU on cooperation in oil and gas; MOU on cooperation in the field of micro, small and medium enterprises; MOU on cooperation in science and technology; and MOU between the Press Council of India and the Press Council of Indonesia.

In a joint statement issued after the talks between the Prime Minister and the Indonesian President, the two countries unequivocally condemned terrorism in all its forms and manifestations and stressed that there could be no justification whatsoever for any act of terrorism. In the field of tourism, the two leaders recognized that a quantum leap in tourism between India and Indonesia was desirable to strengthen vibrant and long-standing people-to-people ties. As a step towards this objective, the Prime Minister announced a scheme of granting visa on arrival to the citizens of Indonesia.

India, Italy to set-up joint trade panel
On January 31, 2011, India and Italy decided to set up a Joint Business Council (JBC), a bilateral trade cooperation body, to work together in areas like ICT, infrastructure and manufacturing. The decision was taken during the meeting of India’s Commerce and Industry Minister Anand Sharma and Italian Minister for Economic Development Paolo Romani, in Rome. The JBC will be managed by FICCI from the Indian side and by CONFINDUSTRIA from the Italian side. It will meet once a year, coinciding with the bilateral ministerial meeting. The two ministers also discussed the importance of SMEs and it was agreed that soon industry chambers of both the countries would organise workshops and seminars. Seeking closer cooperation in infrastructure sector, Sharma informed Romani that India would soon come out with a manufacturing policy aimed at increasing the contribution of manufacturing to 24 per cent of the GDP, from 16 per cent now. Romani assured India that Italian entrepreneurs would take huge advantage of the investment opportunities in India.

USA lifts export curbs on DRDO, ISRO
The US has removed nine Indian space and defence related companies, including those from ISRO and DRDO, from its export control ‘Entity List’ in an attempt to expand high technology trade and strategic cooperation with India. The US decision meets a long pending Indian demand and is the first step to implement the export control policy initiative announced by US President Barack Obama and Prime Minister Manmohan Singh on November 8, 2010, after their summit talks in New Delhi. The nine entities are Bharat Dynamics Ltd (BDL), four remaining subsidiaries of the Defence Research and Development Organisation (DRDO) in the US sanction list and another four of the Indian Space Research Organisation (ISRO). The DRDO subsidiaries are Armament Research and Development Establishment (ARDE), Defence Research and Development Lab (DRDL), Missile Research and Development Complex and Solid State Physics Laboratory Liquid Propulsion Systems Center, Solid Propellant Space Booster Plant (SPROB), Sriharikota Space Center (SHAR), and Vikram Sarabhai Space Center (VSSC) are the four ISRO subsidiaries. Removal from the ‘Entity List’ eliminates a licence requirement specific to the

companies, and results in the companies off the list being treated the same way as any other destination in India for export licensing purposes. “These changes reaffirm the US commitment to work with India on our mutual goal of strengthening the global non-proliferation framework,” said US Under-Secretary of Commerce Eric L. Hirschhorn.

Justice Patil report on 2G Scam
The one-man committee headed by retired Supreme Court judge Justice Shivraj V. Patil, who was appointed by the Telecom Ministry to look into the lapses in the allocation of the 2G Spectrum, has identified the guilty in the report which was submitted on January 31, 2011. After former Telecom Minister A. Raja resigned, the panel was set up on December 13 2010 to look into the Spectrum allocation procedures and policies from 2001 to 2009. The period also included the issuing of telecom licences during the NDA regime. During 2001-04, the BJP-led NDA Government was at the Centre and Raja had been saying that he only followed the policies of his predecessors. The panel has nailed A. Raja for procedural lapses. The report also named seven other officials in the Department of Telecom (DoT), including former DoT Secretary Siddharth Behura and R.K. Chandolia, a former lieutenant of Raja. Justice Patil clarified that procedural lapses of different types were found in different periods and that referred to not just the particular year in question but also before that. He said that procedural shortcomings were found in applications of telecom operators and that there were many shortcomings on the part of DoT officials in implementing procedures. The panel was also asked to examine if procedures were followed consistently and if these were followed in fair and transparent manner and report any deviation, shortcomings and lapses. Country’s top audit body Comptroller and Auditor General (CAG) had earlier alleged that several operators had suppressed information while applying in 2007 to bag licences and the 2G Spectrum from A Raja. Justice Patil said that in the report he had suggested remedial measure with regard to the licensing policies and procedures. Concerning the guilty identified in the report, Patil said he could not produce supporting documents as they were with the CBI.

Prime Minister draws up 20-point agenda on Corruption
Prime Minister Manmohan Singh has outlined a comprehensive agenda to make transparency and ethics the core focus of governance at all levels. A 20-point agenda to bring about procedural improvements to achieve this goal is on the anvil. Adoption of Finland’s procedural model is also under consideration. Critical steps under active consideration by the government include instructions to clearly mention on files involving clearances by them whether the decision was a government one (taken by the Cabinet) or one by the official himself. Other steps being planned are: Proper scrutiny of officials before appointments, especially to critical posts, posting on websites the names of officials involved in corruption cases and permission to prosecute identified cases.

INTERNATIONAL AFFAIRS Dilma Rousseff is Brazil’s first woman President
On January 1, 2010, Dilma Rousseff became the Brazil's first female President. She has promised to build on an unprecedented run of economic success achieved by her popular predecessor and mentor, Luiz Inacio Lula da Silva. Thousands of admirers braved a driving rain and cheered as Rousseff rode to her inauguration in a 1953 Rolls Royce flanked by an all-female security detail. The former Marxist guerrilla, who evolved over the years into a pragmatic civil servant with a professed obsession for reducing poverty, smiled broadly and clapped along with spectators as she was sworn in before the Congress. More than 20 million Brazilians were lifted out of poverty during Lula's eight years in office, thanks largely to his social welfare policies and stable economic management that made Brazil a darling among Wall Street investors. The coming decade also looks bright, with massive, newly discovered offshore oil reserves due to be exploited and the World Cup and Olympics to be hosted here. Yet, Rousseff also faces a long list of daunting challenges that Lula failed to tackle, including an overvalued currency that is hurting industry, rampant public spending that is fueling inflation, and notorious bureaucracy that stifles investment and discourages innovation. Perhaps the biggest task will be living up to the example set by Lula, a former metalworkers' union leader who leaves office with an approval rating of 87 per cent and near folk-hero status, especially among the poor.

New PM appointed in Jordan following protests
On January 31, 2011, Marouf Bakhit was appointed as the Prime Minister of Jordan by King Abdullah. The move came following protests inspired by mass demonstrations in Tunisia and Egypt, but the opposition dismissed the move as insufficient. The earlier Prime Minister Samir Rifal was criticized for following a pro-Western reforms agenda. His opponents sought to reverse free market reforms they say have cut State support for East Bank Jordinians, the original inhabitants of the country who depend on government support more than Jordinains of Palestinian origins.

UN ends Peace Mission in Nepal
On January 15, 2011, the UN ended its peace mission as the government and the main Opposition Maoists inked a crucial eleventh-hour deal to monitor fragile peace process. The UN mission was tasked to supervise the arms and the army of the former rebels and the military. The UNMIN closure, however, makes the fate of the 19,000 Maoist combatants confined in the cantonments uncertain, as there is no clear road-map regarding the future monitoring, integration and rehabilitation of the former combatants. The government said a special committee comprising representatives from the main political parties would monitor the ex-guerrillas, which the Maoists do not agree to.

Governor of Punjab province of Pakistan assassinated for supporting a woman convicted under blasphemy law
The assassination of former Governor of Punjab province of Pakistan, Salmaan Taseer, on January 4, 2011, once again drew attention to Pakistan's controversial blasphemy laws, which have been at the center of debate of late. Religious parties have been able to force Prime Minister Yousuf Raza Gilani to step back from the government's earlier stance of changing these laws Taseer's killing due to his support for a woman convicted under the blasphemy law is yet another addition to the list of those killed as a direct or indirect consequence of this legislation. Threats were made, and protests held against Taseer after he visited Aasia Bibi, a Christian woman awarded the death sentence for committing blasphemy, and expressed his support for her. According to data compiled by the National Commission for Justice and Peace, a local NGO, extra-judicial killings of those accused under the country's blasphemy laws started in 1990, but the laws were in place since 1980, instituted by military strongman General Zia Ul Haq.

South Sudan says “Yes” to secession
South Sudan has overwhelmingly voted to split from the north in a referendum intended to end decades of civil war, as per the result declared on January 30, 2011. Thousands cheered, danced and ululated after officials said 99.57 per cent of voters from the south’s 10 States chose to secede. The vote was promised in a 2005 peace-deal which ended decades of north-south conflict, Africa’s longest civil war which cost an estimated 2 million lives. Kiir, the head of the former southern rebel Sudan People’s Liberation Movement (SPLM), praised his former civil war foe, Sudan’s overall president Omar Hassan alBashir, for agreeing to the 2005 accord. According to the terms of the accord, south Sudan will be able to declare independence on July 9, 2011, pending any legal challenges to the results. Leaders from the SPLM and Bashir’s northern National Congress Party (NCP) still have to agree on a list of politically sensitive issues, including the position of their shared border, how they would split oil revenues after secession and the ownership of the disputed Abyei region. UN Secretary General Ban Ki-moon praised north and south Sudan for the peaceful vote but said he was concerned about the unresolved issues.

Visit of Chinese President to USA
President Hu Jintao of China visited USA in second week of January 2011 to narrow rifts between the world’s top two economies. This was the first visit of a Chinese President to USA in 13 years. The State-run Chinese media recorded the visit as a successful summit of equals. However, the pomp and rhetoric did little to resolve acrimony between the two countries over ‘US interference’ in South China Sea, US policies on Taiwan, the Dalai Lama, currency and trade differences. During the joint press conference President Jintao admitted that his country needed to do a lot more on human rights. The human rights were clearly the top concern of USA despite the economic ties between the two countries. President Jintao warned USA to keep away from Tibet or else bilateral ties will be greatly effected, a day after President Obama asked him to talk to representatives of the Dalai Lama to resolve the issue.

Global Innovation Report, 2010
Innovation levels, as measured by patent volume, shifted across 12 major technology areas from 2009 to 2010, according to the second annual analysis of world patent activity published by the IP Solutions business of Thomson Reuters. The 2010 Innovation Report: Twelve Key Technology Areas and Their States of Innovation tracks patent activity in key technology areas using the Thomson Reuters Derwent World Patents Index® (DWPISM) database, the world's most trusted source of patent information.

Key findings between 2009 and 2010 innovation data include:
Aerospace technology area blasts into a new orbit: In addition to increasing overall activity by 25% year over year, the largest aerospace sub-sector increase from 2009 to 2010 occurred in the field of Space Vehicles and Satellite Technology, which jumped up 108%. The three companies in this area were Japanese manufacturer Sharp, followed by Korean manufacturers LG and Samsung. Semiconductor innovation short circuits: The Semiconductor technology area saw the largest drop in innovation activity across the 12 areas tracked, falling 9% last year. The drop was driven by sub-sector declines in Integrated Circuits; Discrete Devices; and Memories, Film & Hybrid Circuits. The one Semiconductor sub-sector showing growth in 2010 was Materials and Processes. The innovators with the most patent activity in this sub-sector were Korean manufacturers Samsung and Hynix Semiconductor, followed by Japan's Toshiba. Computers & Peripherals tops the list of the most innovative technology areas with the highest volume of patent activity for second consecutive year, despite an overall decline from 2009: The Computers & Peripherals technology area published 212,622 unique inventions in 2010, earning it the top slot among the 12 areas in the analysis. However, this is a 6% decline from the level seen in 2009.

Muslim demographic peak over next 20 years
The world's Muslim population will grow at double the rate of non-Muslims over the next 20 years, according to a broad new demographic analysis that is likely to spark controversy in the West. The Future of the Global Muslim Population may be the first to attempt to map the Muslim population of most of the world's countries. The analysis was conducted by two giant non-profit groups interested in religion: the Pew Research Center and the John Templeton Foundation. This is part of a larger project to map the population of all the world's religions. Among its other projections are: —Muslim populations in some parts of Europe will reach the double digits, with France and Belgium at 10.3 percent by 2030. —Pakistan will overtake Indonesia as the world's most populous Muslim nation. —Muslim population growth and fertility rates will continue to decline. —India will remain home to the world's third largest Muslim population.

—The number of US Muslims will more than double, from 2.6 million in 2010 to 6.2 million in 2030. The analysis could fuel critics of Islam in Europe and the United States, who argue that the religion is at odds with Western values and worry that the number of Muslim extremists is on the rise. Or it could calm those fears by providing evidence that Muslim populations in the West will remain relatively tiny. The study—which uses a dizzying mix of public and private data sources—makes it clear that even rapid growth among Muslims will not produce dramatic demographic shifts in most parts of the world. Eighty-two percent of the world's Muslims live in Asia, West Asia and North Africa, and that number is projected to be around 79 percent in 2030. According to the study's projections, Muslims make up 23.4 percent of the world's population of 6.9 billion; in 2030, that percentage will be 26.4. Europe is home to 2.7 percent of the world's Muslims, a percentage that is predicted to remain stable.

Business News
The NASDAQ-listed iGate has sealed the deal to buy Patni Computers, India’s seventh largest IT services firm, to create a $1-billion entity Starbucks, the world’s largest coffee retailer, has entered into an agreement with Tata Coffee for a strategic alliance in India. Under the non-binding MoU between the two, Starbucks will set up stores in the Tata group’s retail outlets and hotels and source roast coffee beans from Tata Coffee’s Kodagu facility. Infrastructure, Leasing & Finance Services (IL&FS) will be the new promoter of Maytas Properties, the cash-strapped company owned by family members of disgraced Satyam founder Ramalinga Raju. Wipro Chairman Azim Premji has done away with the dual helmsman-ship model and appointed T.K. Kurien as Wipro’s new CEO. Google Inc co-founder Larry Page has taken over as CEO from Eric Schmidt. Page’s assumption of day-to-day operations marks a return to Google’s technological roots, 13 years after he and fellow Stanford University student Sergy Brin founded what has become the world’s number one internet search engine. Mahindra & Mahindra, the market leader in utility vehicles, has launched a pick-up vehicle based on the Xylo model. The vehicle has been named Genio. The Aditya Birla group has bought the $1-billion revenue earning US firm Colombian Chemicals for $875 million, catapulting the group to become the world leader in carbon black, from its number four position that it held before the acquisition. Opening another chapter in aviation history, G.R. Gopinath, known as the pioneer of

low-cost carriers in India, has had his Deccan Charters Ltd join hands with Taj Air, the executive charter service of Indian Hotels Company Ltd and with Business Jets India Pvt Ltd, to launch Powerfly, an alliance in the air charter industry. Maruti Suzuki India Ltd has entered into luxury sedan segment with launch of its carKizashi. ICICI Bank has entered into an agreement with Indian Army for extending modern banking products to the personnel in uniform.

February 2011 Union Budget 2011 Highlights
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Standard rate of excise duty held at 10 percent; no change in CENVAT rates. Personal income tax exemption limit raised to Rs 180,000 from Rs 160,000 for individual tax payers. For senior citizens, the qualifying age reduced to 60 years and exemption limit raised to Rs 2.50 lakh. Citizens over 80 years to have exemption limit of Rs 5 lakh. To reduce surcharge on domestic companies to 5 percent from 7.5 percent. A new revised income tax return form 'Sugam' to be introduced for small tax papers. raise minimum alternate tax to 18.5 percent from 18 percent. Iron ore export duty raised to 20 percent Nominal one per cent central excise duty on 130 items entering the tax net. Peak rate of customs duty maintained at 10 per cent in view of the global economic situation. Service tax widened to cover hotel accommodation above Rs 1,000 per day, A/C restaurants serving liquor, some category of hospitals, diagnostic tests. Service tax on air travel increased by Rs 50 for domestic travel and Rs 250 for international travel in economy class. On higher classes, it will be ten per cent flat. Works of art exempt from customs when imported for exhibition in state-run institutions; this now extended to private institutions. Subsidy bill in 2011-12 seen at 1.44 trillion rupees. Food subsidy bill in 2011-12 seen at 605.7 billion rupees. Revised food subsidy bill for 2010-11 at 606 billion rupees. Revised fertilizer subsidy bill for 2010-11 at 550 billion rupees. Revised petroleum subsidy bill in 2010-11 at 384 billion rupees. State-run oil retailers to be provided with 200 billion rupee cash subsidy in 201112. Fiscal deficit seen at 5.1 percent of GDP in 2010-11. Fiscal deficit seen at 4.6 percent of GDP in 2011-12.

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Total expenditure in 2011-12 seen at 12.58 trillion rupees. Plan expenditure seen at 4.41 trillion rupees in 2011-12, up 18.3 percent. Gross tax receipts seen at 9.32 trillion rupees in 2011-12. Non-tax revenue seen at 1.25 trillion rupees in 2011-12. Corporate tax receipts seen at 3.6 trillion rupees in 2011-12. Tax-to-GDP ratio seen at 10.4 percent in 2011-12; seen at 10.8 percent in 201213. Customs revenue seen at 1.52 trillion rupees in 2011-12. Service tax receipts seen at 820 billion rupees in 2011-12. Economy expected to grow at 9 percent in 2012, plus or minus 0.25 percent. Inflation seen lower in the financial year 2011-12. Disinvestment in 2011-12 seen at 400 billion rupees. Government committed to retaining 51 percent stake in public sector enterprises. Net market borrowing for 2011-12 seen at 3.43 trillion rupees, down from 3.45 trillion rupees in 2010-11. Gross market borrowing for 2011-12 seen at 4.17 trillion rupees. Revised gross market borrowing for 2010-11 at 4.47 trillion rupees. To create infrastructure debt funds. FDI policy being liberalized. To boost infrastructure development with tax-free bonds of 300 billion rupees. Food security bill to be introduced. To permit SEBI registered mutual funds to access subscriptions from foreign investments. Raised foreign institutional investor limit in 5-year corporate bonds for investment in infrastructure by $20 billion. Setting up independent debt management office; Public debt bill to be introduced in parliament soon. Bills on insurance, pension funds, banking to be introduced. To allocate more than 1.64 trillion rupees to defence sector in 2011-12. Corpus of rural infrastructure development fund raised to 180 billion rupees in 2011-12. To provide 201.5 billion rupees capital infusion in state-run banks in 2011-12. To allocate 520.5 billion rupees for the education sector. Rs.21,000 crore forSarva Shiksha Abhiyan. To raise health sector allocation to 267.6 billion rupees. Rs.500 crore more for national skill development fund. Rs.54 crore each for AMU (Aligarh Muslim University) centres at Murshidabad and Mallapuram. Rs.58,000 crore for Bharat Nirman; increase of Rs.10,000 crore. Mahatma Gandhi National Rural Employment Guarantee Scheme wage rates linked to consumer price index; will rise from existing Rs.100 per day. Infrastructure critical for development; 23 percent higher allocation in 2011-12.

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Removal of supply bottlenecks in the food sector will be in focus in 2011-12. To raise target of credit flow to agriculture sector to 4.75 trillion rupees. 3 percent interest subsidy to farmers in 2011-12. Cold storage chains to be given infrastructure status. Capitalisation of National Bank for Agriculture and Rural Development (NABARD) of 30 billion rupees in a phased manner. To provide 3 billion rupees for 60,000 hectares under palm oil plantation. Food storage capacity to be augmented; 15 more mega food parks to be set up in 2011-12; of 30 sanctioned in previous fiscal, 15 set up. Comprehensive policy on further developing PPP (public-private-partnership) model. To move towards direct transfer of cash subsidy for kerosene, LPG and fertilizers. Financial Sector Legislative Reforms Commission, headed by former Supreme Court judge B. Srikrishna, to complete its work in 24 months; to overhaul financial regulations. Five-fold strategy against black money; 13 new double taxation avoidance agreements; foreign tax division of CTBT strengthened; strength of Enforcement Directorate increased three-fold. Bill to be introduced to review Indian Stamp Act. New coins carrying new rupee symbol to be issued. Anganwadi workers salary raised from Rs.1,500 to Rs.3,000. Housing loan limit for priority sector lending raised to Rs.25 lakh.

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Railway Budget, 2011
For the third year in a row, Railway Minister Mamata Banerjee made an attempt to come out with the “aam aadmi” budget sparing the passengers and industry from fare and freight hikes and announcing the highest ever investment of Rs 57,630 crore, with 68 new trains. On February 25, 2011, presenting her third Railway Budget in UPA-II in the Lok Sabha, Mamata vowed to build a stronger railroad infrastructure based on the Vision 2020 document while announcing a slew of concessions, including reducing the eligibility age of senior women citizens from 60 to 58 years and raising the fare concession for senior citizens (above 60) from 30 to 40 per cent. The budget estimates for 2011-12 project a freight loading of 993 million tonne and a passenger growth of 6.4 per cent. Ordinary working expenses have been estimated at Rs 73,650 crore and appropriation to depreciation reserve fund pegged at Rs 7,000 crore. A provision of Rs 6,735 crore has been made for dividend payment and the excess for railways for the new fiscal has been projected at Rs 5,258 crore, with an operating ratio of 98.1 per cent. Gross traffic receipts have been fixed at Rs 94,840 crore, which is higher by Rs 75 crore over budget estimates. The ordinary working expenses have been fixed at Rs 67,000

crore. A target of 1,300 km of new lines, 867 km of doubling of lines and 1,017 km of gauge conversion has been set. Indian Railways, the world’s second largest under a single management, has a network of 64,099 km to ferry as many as 18.9 million passengers on 7,000 trains daily, from 6,906 stations. It also runs 4,000 freight trains to carry 850 million tonne of cargo.

Highlights
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No hike in passenger fare and freight rates. Highest ever plan outlay of Rs 57,630 crore proposed. Rs 9,583 crore provided for new lines. 1,300 km new lines, 867 km doubling of lines and 1,017 km gauge conversion targeted in 2011-12. 56 new Express Trains, 3 new Shatabdis and 9 Durontos to be introduced. 16,000 ex-servicemen to be given jobs in railways. Ten-year backlog of 1.75 lakh jobs to be addressed. Durontos on the Allahabad-Mumbai, Pune-Ahmedabad, Sealdah-Puri, Secunderabad-Visakhapatnam, Madurai-Chennai routes. Integrated suburban network to be set up in Mumbai, Chennai, Ahmedabad. A bridge factory in Jammu & Kashmir and a state-of-art institute for tunnel and bridge engineering proposed at Jammu. New Shatabadi to link Ludhiana with New Delhi. New weekly train, "Vivek Express", on Bandra (T)-Jammu Tawi Express route via Marwar-Degana- Ratangarh -Jakhal-Ludhiana. Industrial park in Nandigram, Metro coach factory for Singur. Centre for excellence in software at Darjeeling. Concession for senior citizens increased from 30% to 40%. Age for senior women citizens’ concession reduced to 58 from 60. Pradhan Mantri Rail Vikas Yojana to be launched. Student special .trains to be started; start of Rajrani Express. Multi-purpose smart card to be introduced for all-India travel.

Review of economic growth story of India
As per the Economic Survey 2011, non-Congress States are scripting India’s economic growth story. The Survey places Bihar on top in terms of performance on growth, with the State posting a whopping 16.59 per cent growth in 2008-2009, the latest year for which the data is available. But Gujarat pips Bihar (which is followed by Orissa, Haryana and Uttrakhand) to the lead spot when the growth performance is measured from 2002-2003 onwards to 2009. Interesting to see is the fact that out of top five growing States in the country, four are ruled by non-Congress governments, with the exception of Haryana which stands fourth in this list. The Economic Survey reveals that though Rajasthan, followed by Andhra Pradesh, UP, Madhya Pradesh, Tamil Nadu and Bihar, provided maximum employment under

MNREGA in 2009-2010, it was Punjab (ruled by the Shorimani Akali Dal-BJP combine) which employed the maximum Scheduled Castes under the programme (Punjab also reports the lowest number of people below poverty line in India) while the BJP-ruled Madhya Pradesh employed the maximum STs, followed by Jharkhand, Gujarat and Chhattisgarh. After Punjab, the maximum SC employment under MNREGA was reported from Tamil Nadu, UP, Haryana and Bihar. On gross enrollment ratios in elementary education also, the Opposition-ruled States of Jharkhand (where the JMM and BJP are in coalition), Madhya Pradesh, Chhattisgarh and Gujarat rank the highest. So far as the progress under the National Rural Health Mission goes, the maximum health centers have come up in Tamil Nadu, followed by Karnataka, Andhra Pradesh, Maharashtra, Uttar Pradesh and Bihar. Ironically, though they are doing well in terms of economic growth, non-Congress ruled states like Orissa and Bihar continue to perform poorly on poverty indicators. “The percentage of people below the poverty line is very high in Orissa, Bihar, Chhattisgarh, Jharkhand, Uttrakhand and Madhya Pradesh. Rural income inequality is the highest in Haryana and urban income inequality is the highest in Madhya Pradesh.

Plan to deal with black money menace
Union Finance Minister Pranab Mukherjee has said that the government had adopted a five-fold strategy to deal with the problem of generation and circulation of black money. Presenting the Budget, he said: “The five-fold strategy consists of joining the global crusade against black money, creating an appropriate legislative framework, setting up institutions for dealing with illicit funds, developing systems for implementation and imparting skills to the manpower for effective action.” He added that while the membership of the Financial Action Task Force was secured in June 2010, the government has also joined the Task Force on Financial Integrity and Economic Development, Eurasian Group and Global Forum on Transparency and Exchange of Information for Tax Purposes. “Discussions have also been concluded for 11 Tax Information Exchange Agreements and 13 new Double Taxation Avoidance Agreements (DTAAs), along with revision of provisions of 10 existing DTAAs,” he said.

India, Japan sign free trade agreement
On February 16, 2011, India and Japan signed a comprehensive economic partnership agreement (CEPA) to open markets and reduce barriers on goods, services and movement of people between the two countries. The pact was signed between Commerce and Industry Minister Anand Sharma and Japanese Foreign Affairs Minister Seiji Maehara in Tokyo.

Indian government has set a target of doubling bilateral trade to $25 billion by 2014, which is currently at $10.3 billion. CEPA will lead to a quantum increase in bilateral trade and investment flows, by relaxing barriers to trade in goods, services and movement of natural persons, besides enhanced cooperation on protection of intellectual property. This agreement is the most ambitious agreement signed by India so far and covers trade in goods, services and investment under its ambit. This agreement follows from the commitment of the two Prime Ministers in October 2010. The agreement has ensured that the sensitive sectors for India are fully protected, including agriculture, fruits, spices, wheat, basmati rice, edible oils, wines and spirits and also certain categories of industrial products such as auto and auto parts.

India, Malaysia ink free trade pact
On February 18, 2011, India and Malaysia signed a comprehensive market opening pact that throws up myriad trade opportunities for both sides and give a boost to India's LookEast Policy and the prospects for its economic integration with South-East Asia. India’s Commerce Minister Anand Sharma and his Malaysian counterpart Mustapa Mohamed, in the presence of Prime Minister Najib Razak and several leading captains of industry from both sides, signed the Comprehensive Economic Cooperation Agreement (CECA). The agreement, which was reached after seven rounds of negotiation, will see Indian mangoes, cotton, motorcycles, trucks and basmati rice attract less duty in Malaysia, among other things. As a quid pro quo, the South-East nation will face less barriers on the sale of its fruit, engineering goods and chemicals in India.

Shivraj V. Patil panel report on 2G scam
Unveiling the report of the Shivraj V Patil panel that went into the lapses made during the allocation of the 2G Spectrum, Telecom Minister Kapil Sibal said on February 4, 2011, the committee had concluded that all decisions on Spectrum allocation since 2003 by successive governments, including the UPA regime, were procedurally wrong. In what could be a damning admission of Raja not following procedures despite advice from other ministries, the report says that the DoT did not follow the advice of the Law Ministry or the views of the Finance Ministry over Spectrum pricing. The findings on procedural lapses are being sent to the CBI, which is looking into the criminal culpability in the scam.

ULFA agrees to unconditional talks
After three decades of armed conflict that cost thousands of lives in Assam, the outlawed United Liberation Front of Assam( ULFA) has finally decided to sit for “unconditional” talks with the Government of India. On February 5, 2011, leaders of the outfit informed that ULFA had been invited by Union

Home Minister P. Chidambaram for a preliminary round of talks in New Delhi, as a prelude to formal negotiations that would materialize once ULFA submitted its charter of demands. With this ULFA has finally given up its earlier preconditions of, one, holding talks in a third country; two, including “sovereignty” as the core issue; three, of having a UN observer for the talks. The ULFA foreign secretary, Sasadhar Choudhury, pointed out that preconditions set by both ULFA and the government had stood in the way of holding peace talks since 1992, the year ULFA leaders had met then Prime Minister P.V. Narasimha Rao only to renege on their promise to come forward for a dialogue on a later date. On ULFA commander-in-chief Paresh Barua airing his opposition to dialogue, the outfit leaders said he had done it before the general council of ULFA decided on unconditional talks. “The decision of the general council is binding on everyone. Anyone defying it will face disciplinary action as per the provision of the ULFA’s constitution. Paresh Barua was invited to both the central executive committee and general council meeting, but he didn’t come. We have conveyed our decision for talks to him and are waiting for his response,” the ULFA leaders said. ULFA claims to have been founded on April 7, 1979. It initiated major violent activities in 1990, which led the Union government banning the organisation. Military operations against it by the Army also began in 1990. In the past two decades, some 10,000 people have died in clashes between the rebels and the government. In December 2009, the chairman and the deputy commander-in-chief of ULFA were arrested. There has also been a large ULFA crackdown in Bangladesh in last one year, which significantly assisted India and led to ULFA softening its stand and dropping the demand for independence as a condition for talks.

Godhra Train Burning Case
On February 22, 2011, thirty one persons were convicted and 63 others, including the main accused Maulvi Umarji, were acquitted by a special court in the 2002 Godhra train burning incident that left 59 persons dead and triggered violence in Gujarat that claimed the lives of over 1200 people. The trial, conducted inside the Sabarmati Central Jail, Ahmedabad, began in June 2009 with the framing of charges against 94 accused. The accused were charged with criminal conspiracy and murder in burning of the S-6 coach of the train on February 27, 2002, near Godhra, about 125 km from Ahmedabad, in which 59 people were killed. As many as 253 witnesses were examined during the trial and over 1,500 documentary evidences were presented before the court by the Gujarat police. There were a total of 134 accused in the case, out of which 14 were released due to lack

of evidence, five were juvenile, five died during proceedings of over nine years, and 16 are absconding. Of the 94, against whom the trial was conducted, 80 are in jail and 14 are out on bail. Two different panels appointed to inquire into the 2002 case had given different views on the Godhra train burning incident. The Nanavati Commission, appointed by the Gujarat government to probe the carnage, had in the first part of the report concluded that the fire in the S-6 coach was not an accident, but was caused by throwing petrol inside it. The one-man U.C. Banerjee Commission appointed by the Railway Ministry under Lalu Prasad Yadav had said that the fire was "accidental". The Court accepted the conspiracy theory.

People power forces Hosni Mubarak to quit as President of Egypt
On February 11, 2011, Hosni Mubarak stepped down as Egypt's President, handing over to the army and ending three decades of autocratic rule, bowing to escalating pressure from the military and protesters demanding that he go. A military council would run the affairs of the Arab world's most populous nation, till a free and fair presidential election is held in September. After a speaker made the announcement in Cairo's Tahrir Square, hundreds of thousands of protesters broke down in tears, celebrated and hugged each other chanting: “The people have brought down the regime.” The 82-year-old Mubarak's downfall after 18 days of unprecedented mass protests was a momentous victory for people power and is sure to rock autocrats throughout the Arab world and beyond. The sharpening confrontation had raised fear of uncontrolled violence in the most populous Arab nation, a key US ally in an oil-rich region where the chance of chaos spreading to other long stable but repressive States troubles the West. Washington has called for a prompt democratic transition to restore stability in Egypt. Hundreds of thousands of protesters rallied across Egypt, including in the industrial city of Suez, earlier the scene of some of the fiercest violence in the crisis, and the second city of Alexandria, as well as in Tanta and other Nile Delta centers. Since the fall of Tunisia's long-time leader Zine al-Abidine Ben Ali, which triggered protests around the region, Egyptians had been demonstrating in huge numbers against rising prices, poverty, unemployment and their authoritarian regime.

Nepal finally gets a Prime minister after seven months and sixteen attempts
Ending a seven-month-long standoff over the Prime Ministerial election, Nepal's Parliament, on February 3, 2011, elected veteran communist leader and chairman of the Communist Party of Nepal-Unified Marxist Leninist (CPN-UML) Jhalanath Khanal as the new Prime Minister of the Federal Republic of Nepal. UML chairman Khanal, 61, was elected by securing 368 votes in the 601-member Parliament. Khanal proved lucky and became the third communist Prime Minister after the April 2006 uprising by replacing his fellow comrade Madhav Kumar Nepal after the Unified CPNMaoists, the single largest party in the Parliament, decided to withdraw its candidate and forge a Left alliance by extending support to Khanal. Jhalanath Khanal, who was elected chairman of the UML in February 2009, was born in Ilam in May 1950. A graduate in political science and history from Tribhuvan University, Khanal entered politics in 1965. He was one of the founding members of the National Co-ordination Committee for all Communist Revolutionaries of Nepal in 1975 and CPN (ML) in 1978. He was jailed for a total of 26 months in his early political career and went underground in 1979. After restoration of democracy, he was a minister in the interim government formed in 1990. He was elected as a lawmaker in the 1991 and 1994 general elections.

G-20 ministers reach deal to correct economic flaws
G-20 Finance Ministers have reached a compromise deal to correct global economic imbalances and expressed concern over excessive commodity price volatility impacting the world food security, an issue pressed by India. After two days of hard bargain by their Finance Ministers, major economies, faced with uneven recovery and downside risks, reached a text in the face of tough resistance from China to agree on guidelines for removal of structural flaws in the global economy. However, the document did not talk about an issue of much interest to India. New Delhi wanted that G-20 should urge all jurisdictions to conclude Tax Information Exchange Agreements so that menace of black money in tax havens can be tackled. This issue seems to have been put on back seat as a lot of time was spent on reaching an agreement with China, which was opposed to inclusion of foreign exchange reserves and its exchange rate among the guidelines. China is sitting on a $2.8 trillion forex reserves and is accused by the US of manipulating its currency yuan. Faced with a double-digit food inflation, India also pressed for a coordinated approach to tackle food, commodity and oil price volatility, which make emerging economies "vulnerable". The ministers agreed on a plan to strengthen the international monetary system (IMS) with regard to disruptive capital flows and disorderly movement in exchange rates, a matter of great concern to India.

The document also expressed its worries on the impact of rising oil prices, which have exceeded $100 per barrel. On the most contentious guidelines to remove structural imbalances, the communique appeared to have accommodated China's objections to including forex reserves and current account deficit. The communiqué, instead, said that indicative guidelines, without targets will be used to assess: i) public debt and fiscal deficit; private savings and private debt; ii) external imbalances composed of trade balance and net investment income flows and transfers, taking into due consideration of exchange rate, fiscal, monetary and other policies.

US, Russia launch nuclear arms reduction pact
On February 5, 2011, US Secretary of State Hillary Clinton launched a landmark nuclear arms reduction pact with Russia, a showpiece of Washington’s “reset” of ties with its former Cold War enemy. The new START officially came into force when Clinton and Russian counterpart Sergei Lavrov exchanged ratification documents at a security conference in the German city of Munich. “Today we exchange the instruments of ratification for a treaty that lessens the nuclear danger facing the Russian and American people and the world,” Clinton said. The chief US diplomat hailed the pact as another example of “clear-eyed” cooperation between the two military powers, “part of a journey we have been taking for more than 60 years.” Lavrov told the Munich conference that the agreement would “enhance international stability.” The pact slashes existing warhead ceilings by 30 per cent over the next 10 years and limits each side to 700 deployed long-range missiles and heavy bombers. The original 1991 pact expired at the end of 2009 amid stark differences over how the two sides planned to proceed.

Business News
Reliance Industries Ltd and UK’s oil and gas exploration company BP have announced a historic deal under which BP will pay $7.2 billion to acquire 30 per cent equity stake in 23 oil and gas production sharing contracts that RIL operates in India, including the KG D6 block. Future performance payments of up to $1.8 billion could be paid based on exploration success. Fortis Global Healthcare Holdings will acquire a majority stake in Australia’s Dental Corporation Holdings (DCH). Fortis Global is the wholly-owned overseas investment vehicle of Fortis Healthcare Ltd. Educomp Solutions has picked up a majority stake in test preparation company

Gateforum Educational Services which provides preparatory tools for Graduate Aptitude Test in Engineering (GATE), an entrance test for admission to postgraduate courses in technical institutes in India. Nokia Oyj, the world’s biggest maker of mobile phones, has formed a software partnership with Microsoft Corp., betting that together the two companies can challenge Google Inc and Apple Inc.

DO YOU KNOW
India’s first inland fish processing unithas been set up in the village of Bhutana in Karnal district of Haryana. The unit has been set up in technical collaboration with ZTM BPD Unit, South Zone, Central Institute of Fisheries Technology, Cochin, which comes under the Indian Council of Agricultural Research (ICAR). As per the Economic Survey, 2011,India has the fourth largest foreign exchange reserves in the world. India’s foreign exchange reserves touched $ 297.3 billion in December 2010, from 279.1 billion in March. The National Science Day is observed on February 28 to mark the discovery of Raman Effect by Sir C.V. Raman in 1928, for which he was awarded the Nobel prize. To reduce the burden of small tax-payers, a new, simplified income tax return form, Sugam, has been introduced. The Union Budget 2011 has increased the Defence budget by 11 per cent. Additional Rs 17,071 crore have been allotted over 2010 Budget figure of Rs 1,47,344 crore. About Rs 69,199 crore has been earmarked for capital expenses like weapons, planes, ships, special classified projects etc. The Budget 2011 has earmarked Rs 52,000 crore for education, out of which Rs 21,000 crore will be spent on Sarv Shiksha Abhiyan, Rs 6,213 crore on secondary education and Rs 2,200 crore on higher education. The Hyderabad international airport has bagged the first rank in its category in the latest Airport Service Quality (ASQ) rankings of the Airports Council International (ACI). The theme song of Cricket World Cup, 2011 was “De Ghuma Ke”. It was composed by the trio of Shankar, Ehasan and Loy India received foreign direct investment (FDI) worth $21 billion 9Rs 96,104 crore) in the calendar year 2010, a decline of 22 per cent over 2009. The SAARC Foreign Ministers’ meet was held in Thimpu, Bhutan on February 8, 2011. The NASSCOM India Leadership Forum (NILF) was held in Mumbai in February 2011. Mahatma Gandhi and the Tibetan spiritual leader the Dalai Lama have been listed by

the Time magazine as the world’s top 25 political icons. Time’s top 25 political icons are: Mahatma Gandhi, Alexander the Great, Mao Zedong, Winston Churchill, Genghis Khan, Nelson Mandela, Abraham Lincoln, Adolf Hitler, Ernesto ‘Che’ Guevara, Ronald Reagan, Cleopatra, Franklin Roosevelt, the Dalai Lama, Queen Victoria, Benito Mussolini, Akbar the Great, Lenin, Margaret Thatcher, Simón Bolívar, Qin Shi Huang, Kim Il-Sung, Charles de Gaulle, Louis XIV, Haile Selassie, King Richard the Lionheart and Saladin. India has agreed to temporarily lend fragments of Buddha’s bones, famously known as Kapilavastu relics, to Sri Lanka for an exposition to celebrate his 2600th year of enlightenment in 2011. China has emerged as the world’s largest economy, surpassing Japan, which had held on to the position for over four decades. At the end of 2010, Japanese economy was estimated to be worth about $5.5 trillion and that of China $5.8 trillion. USA continues to be the largest economy of the world with the economy worth $14.6 trillion.

March 2011

NATIONAL AFFAIRS Passive euthanasia permissible: SC
The Supreme Court of India has rejected the petition for mercy killing of Aruna Shanbaug, who has been in a “persistent vegetative state” for the past 37 years. There is no law to allow it. However, the surprise is that the apex court has permitted passive euthanasia under certain, supervised by a High Court. The conditions require the High Court to seek the opinion of three eminent doctors as well as listen to the government and close relatives of the terminally ill patient. Under passive euthanasia the life support system of a terminally ill patient is withdrawn, while under active euthanasia the patient is given a lethal injection by a doctor. During the arguments Attorney General G.E Vahanvati had contended that the withdrawal of food to the victim “will be a cruel, inhuman and intolerant approach unknown and contrary to Indian laws”. Euthanasia, also called assisted suicide, has been debated worldwide. Only a small number of countries permit it: Belgium, Holland, Luxembourg and Switzerland in Europe, Thailand in Asia and the two US States of Washington and Oregon. Australia and the UK have toyed with the idea but dropped it due to opposition from the believers. Pope John Paul II dubbed it “a crime that no human law can claim to legitimize”. However, support for mercy killing is growing, especially in Europe. Polls in the UK and France have shown up to 80 per cent support for a law to shorten life if illness is terminal and causes intolerable suffering.

Cabinet nod for Banking Reform Bill
The Union Cabinet has given its nod to the Banking Regulation (Amendment) Bill, which proposes to increase the voting rights of foreign investors in private sector banks. The Bill—which seeks to align the voting rights of foreign shareholders in banks in proportion to their equity holding—will make it easier for banks to raise capital. Going forward, as we need capital in banking, this will make it easy for those who are standing on the sidelines to put more capital into banks as and when there are initial and follow-on public offers. It will strengthen the Indian banking system at a time the economy is going great guns. The Bill, first introduced in the Lok Sabha in May 2005, had lapsed as the Lok Sabha was dissolved for general elections in 2009. The government could not move it ahead in its previous tenure due to stiff opposition from the Left parties, which were its allies. The Bill also proposes to make it mandatory for a person who wants to acquire 5 per cent or more share capital of a bank to get approval from the Reserve Bank of India (RBI). It also proposes to give RBI more operational flexibility in the conduct of monetary policy and power to specify the statutory liquidity ratio without any floor or ceiling. The restriction on bank lending to directors and companies in which the directors have an interest is leading to problems in appointing competent independent directors. The Bill says it is necessary to empower RBI to grant exemption from this rule in appropriate cases.

Law to deal with sexual offences against kids
A government study says that 53 per cent of children below 18 years of age have undergone some or the other form of sexual victimisation. What is even more worrisome is that more than half the abusers are known to the children. The gravity of the situation has set the wheels rolling for a crucial Bill that will give the country, for the first time, a comprehensive law to deal with sexual offences against children, by providing for stringent punishment of up to 10 years in jail, which may even extend to life imprisonment. The Protection of Children from Sexual Offences Bill, 2011, will deal exclusively with sexual offences against children. It will protect children from sexual assault, sexual harassment and pornography and provide for establishment of special courts for trial of such offences and for matters connected therewith or incidental thereto. The legal tool also provides for treating sexual assault as “aggravated offence” where it is committed by a person in position of trust or authority over a child, including a member of the security forces, police officer, public servant, management or staff of a children’s home, hospital or educational institution. It will be treated as an aggravated offence where the child victim is below the age of 12 or suffers from a mental or physical disability or the sexual offence causes grievous hurt or injury to the child with a long-term adverse effect on the child’s mind and body. The

punishment for such an offence would be imprisonment of up to seven years with fine. The punishment for penetrative sexual assault has been proposed to be at least five years in jail and a minimum fine of Rs 50,000. Sexual assault also includes fondling the child in an inappropriate way, which will invite a penalty of minimum three years in jail. Section 7 of the Bill provides for “no punishment” if the consent for sexual act has been obtained with a person aged between 16 and 18 years.

Pension Bill introduced in Parliament
Paving the way for setting up of a regulator for the insurance sector, the Union government, on March 24, 2011, introduced the long-awaited Pension Fund Regulatory and Development Authority (PFRDA) Bill in the Lok Sabha. The move aims at providing social security to millions of employees through efficient intermediation of long-term household savings. The proposed legislation, however, steered clear of making any mention of a ceiling on foreign direct investment (FDI) in the sector. The government will separately notify the ceiling. The Bill also allows for part investment in stock markets although Left leaders are against equity investment option given to pension scheme. The Bill, which provides powers to sectoral regulator PFRDA to oversee multiple pension funds in the country, will largely follow the suggestions made by a Parliamentary standing committee in 2005. The PFRDA is yet to get statutory powers as the Bill pertaining to that effect lapsed in Parliament with the dissolution of the last Lok Sabha in 2009. The interim PFRDA is functioning since 2003 through an executive order. Unlike other regulators such as the Reserve Bank of India, the PFRDA does not have statutory status or the quasi-judicial powers of other regulators. Hence, if one of the entities regulated by the PFRDA violates norms, it cannot impose penalties. The New Pension System, introduced by the government in January 1, 2004, was opened to all citizens of India from May 1, 2009 on a voluntary basis.

Census 2011: Population pegged at 1.21 billion
India's most backward and populous States slowed down their rate of population growth, helping the country register its sharpest decline in population growth since Independence. India's population grew to 1.21 billion, according to provisional results of the decadal headcount declared by Census Commissioner C. Chandramouli on March 30, 2011. The absolute addition of about 181 million people is slightly less than the population of Brazil—the world fifth most populous country—but the slower decadal growth rate of 17.64% has offered hope to policy makers. This is the first time since 1921 that the country has actually added lesser people in a decade compared to the previous decade.

Eight States, including India's most backward States—Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh—broke the jinx to reduce their percentage decadal growth to 20.9%. This is a significant achievement since the growth rates of these States had frozen at 24-25% since 1971. The absolute number of children in the 0-6 age group also recorded decline, from 163 million in the 2001 census to 158 million in 2011, signalling a fall in fertility. But worryingly, this decline is sharper in case of females than males. The figures broadly indicate a drop in fertility across the country except in Jammu & Kashmir, where the proportion of children has in fact increase to 16.01%, compared to 14.65 in 2001. There are 57 more Indians for every square kilometer in addition to those already jostling for space in the country. Census 2011 shows that from 325 per square km in 2001, the average density of population has increased to 382 in 2011—up by 17.5%. While the cow-belt and West Bengal continues their dominance, the density spread is more in the urban areas, pointing to the pressure on the natural resources, infrastructure and government aid. India accounts for a meager 2.4% of the world surface area of 135 million sq km and supports 17.5% of the world’s population. In contrast, the US accounts for 7.2% of the surface area with only 4.5% of the population. At 11,297 people for every sq km, Delhi tops the list of States and Union Territories in terms of density. Chandigarh comes next, with 9,252 people. Among States, however, the top slot goes to Bihar with 1,102 people/ sq km. West Bengal is the only other State to have a density in excess of 1,000. Uttar Pradesh, otherwise the most populous State, has a density of only 828. Andaman and Nicobar and Arunachal Pradesh are the least densely populated territories, with 46 and 17 people, respectively, in every sq km. Dibang valley of Arunachal has only one person in a sq km, while Samba in J&K has two. Nagaland is the only State that has statistically demonstrated a negative growth rate and a marginal decline in density. Women steal literacy lead over men: More Indian women gained literacy over the past decade than men, according to the 2011 census. A total of 110 million additional women have become literate since 2001, as opposed to 107 million men over the same period. Never before have women outdone men in numbers gaining literacy over any decade. India’s overall literacy rate has risen from 64.8 % in 2001 to 74.04% — but the surge in women literates means the gap between male and female literacy has shrunk.

While male literacy has increased from 75.2% in 2001 to 82%, female literacy has jumped from 53.6% to 65.4% over the same period. The literacy increase—overall and for women—follows a decade in which successive governments have focused on school education like never before since Independence. The Sarva Shiksha Abhiyaan launched in 2001, along with the universalisation across government schools of the mid-day meal scheme, are credited by most experts as critical interventions that have helped India achieve near universal enrollment in primary education. Bihar and Uttar Pradesh—traditional laggards in education—have shown maximum improvement both in improving overall literacy and in their female literacy rate. Bihar’s overall literacy has gone up from 47% in 2001 to 63.8% in 2011, while UP’s overall literacy has risen from 42.2% to 59.3% over the same period. The female literacy rate of Bihar has jumped a startling 20%—from 33.1% in 2001 to 53.3% now. UP has a seen a rise from 42.2% to 59.3% in female literacy. Kerala remains at the top of the pile in overall, male and female literacy.

Direct Subsidy Payout Plan
The Union government has approved a three-step strategy to create a foolproof system for transferring fertilizer subsidy directly to farmers. In the first step, the government plans to track the movement of fertilizers from factories to farmers via retailers. This is expected to be over by December. After this, based on the collected data, it would start paying retailers. According to DoF, there are around 230,000 retailers who will be paid based on the quantity of fertilizer they receive from companies or through the wholesale route. In the third stage, the government would gradually start paying farmers directly. Fertilizer companies said the strategy might cause delays and the deadline of March 2012 for directly transferring kerosene, LPG and fertilizer subsidies to consumers could be missed. In order to account for all subsidy liabilities and lower the outgo, the government has set up a task force under Nandan Nilekani, the chairman of the Unique Identification Authority of India. It has been given a deadline of March 2012. The revised estimates put the subsidy bill—food, kerosene and fertilizers—at Rs 1,64,153 crore for 2010-11. The subsidy bill for food, petroleum and fertilizers is estimated at Rs 1,34,210 crore for 2011-12. Direct subsidy transfer is positive for the industry, as it removes the working capital issues which arise from delayed payments and under-recoveries.

FDI policy liberalised
Relaxing the rules for foreign direct investment (FDI) in the country, the Union government, on March 31, 2011, decided to permit the issuance of equity to overseas firms against imported capital goods and machinery. Furthermore, the norms for overseas investment in production and developments of seeds have been liberalised. The measure which liberalises the conditions for conversion of non-cash items into equity, is expected to significantly boost the prospects for foreign companies doing business in India. In the agriculture sector, FDI will now be permitted in the development and production of seeds and planting material without the stipulation of having to do so under 'controlled conditions'. The government has further decided to abolish the condition of prior approval in case of existing joint ventures and technical collaborations in the 'same field'. It is expected that this measure will promote the competitiveness of India as an investment destination and be instrumental in attracting higher levels of FDI and technology inflows into the country. Further, companies have now been classified into only two categories—'companies owned or controlled by foreign investors' and 'companies owned and controlled by Indian residents'. The earlier categorisation of 'investing companies', 'operating companies' and 'investingcum-operating companies' has been done away with.

Cricket diplomacy—Pakistan’s PM invited to watch cricket World Cup semifinal at Mohali
Much against the opinion of his own Cabinet, Prime Minister Manmohan Singh invited Pakistani leaders—both Prime Minister and President—to witness the cricket World Cup semi-final match at Mohali, played between the teams of the two nations on April 29, 2011. Pakistan’s Prime Minister Yousaf Raza Gilani accepted the invitation to take forward the peace initiative taken by the Indian Prime Minister. At the dinner table in the stadium itself, Mr Manmohan Singh was quick to remind Mr Gilani that there was a need to create an atmosphere free of violence and terrorism for truly realising the goal of normal ties. Prime Minister Gilani full shared the views expressed by Mr Singh. Before leaving for Islamabad, Mr Gilani said the two countries had the will and ability to resolve their problems and stressed the need to give this ‘positive message’ to the world. Prime Minister Singh termed the meeting as a ‘very good beginning’.

SC strikes down CVC appointment
On March 3, 2011, the Supreme Court of India ruled that the appointment of P.J. Thomas “was in contravention of the provisions” of the CVC Act, 2003, and hence “it is declared” that the September 3, 2010, recommendations of the HPC “is non-est in law” and consequently his appointment “is quashed”. The verdict was given by a threemember Bench headed by Chief Justice S.H. Kapadia. The Bench, which included Justices KSP Radhakrishnan and Swatanter Kumar, ruled that the HPC neither considered the “personal integrity” of Thomas nor the need for maintaining the institutional integrity and competence of the Central Vigilance Commission, a statutory body set up to fight corruption by guiding the CBI. The HPC, which included Home Minister P. Chidambaram and Leader of Opposition Sushma Swaraj, failed to consider the 2003 corruption case relating to the import of palm oil in 1992 by Kerala, where Thomas was Food Secretary, and the four departmental recommendations between June 2000 and November 2004 for initiating “penalty proceedings” against Thomas in the light of the allegations against him in the case. The SC and the Kerala High Court had also rejected the pleas for quashing the FIR filed in the corruption case and that fact was also not brought before the HPC. The explanation that the HPC could not consider these details as these were not included in the file put up before the committee by the Department of Personnel was immaterial, the Bench ruled. “The fact remains that the HPC, for whatsoever reason, has failed to consider the relevant material keeping in mind the purpose and policy of the 2003 CVC Act,” the apex court pointed out in its judgment while disposing of two PILs challenging the appointment of Thomas. The HPC should take into consideration whether the candidate would or would not be able to function as a CVC. “Whether the institutional competency would be adversely affected by pending proceedings and if by that touchstone the candidate stands disqualified, it shall be the duty of the HPC not to recommend such a candidate,” the apex court ruled. The verdict was “strictly confined” to the legality of the September 3, 2010, recommendation of the HPC, the Apex Court clarified. The Central Vigilance Commission (CVC), set up in 1964, is India’s top corruption watchdog, which is empowered to conduct inquiries in departmental actions against public servants. It is the designated agency to receive written complaints and recommend action in cases of graft or misuse of office by officials. The jurisdiction of the CVC extends to all central government departments, central government companies, including nationalised banks, and central government organisations. It is not an investigating agency. CVC gets the investigations done either by the CBI or through chief vigilance officers in government offices.

INTERNATIONAL AFFAIRS Canadian Parliament Dissolved On March 26, 2011, Canada's Governor-General dissolved the Parliament after a vote of no-confidence in Tory Prime Minister Stephen Harper's government, setting up a May 2 election, the fourth in seven years. From the steps of the official residence of Queen Elizabeth II's representative in Canada, Harper announced the official launch of the campaign, contrasting his Conservatives' economic recovery plan with the prospects of opposition parties forming a leftist coalition. The snap poll was forced following the passage of the no-confidence vote against the minority government engineered by the opposition Liberal Party and backed by two other opposition parties, on the heels of a historic contempt of Parliament charge. Junta rule ends in Myanmar On March 30, 2011, Myanmar’s military handed power to a nominally civilian government after almost half a century of army rule, as the junta was disbanded and a new President appointed. But the army hierarchy retains a firm grip on power in the resource-rich Southeast Asian country, and many analysts believe Senior General Than Shwe will attempt to retain some sort of control behind the scenes. The handover came after controversial elections in November 2010, the country’s first in 20 years, which were marred by the absence of democracy icon Aung San Suu Kyi and claims of cheating and intimidation. Former PM Thein Sein, a key Than Shwe ally, was sworn in as President. He is among a slew of generals who shed their army uniforms to contest the elections and are now civilian members of Parliament, which also has a quarter of its seats kept aside for the military. Dalai Lama announces his retirement as political head On March 10, 2011, the Dalai Lama announced his retirement plan on the 52nd anniversary of the Tibetan Uprising Day. Announcing that he would step down as political head of the Tibetan government-in-exile, the Dalai Lama in his speech said he would hand over his “formal authority” to a “freely-elected” leader. “As early as the 1960s, I have repeatedly stressed that Tibetans need a leader, elected freely by the Tibetan people, to whom I can devolve power. Now, we have clearly reached the time to put this into effect,” the 75-year-old Nobel Peace Laureate, who has been at the forefront of a six-decade-long struggle for freedom of Tibetans, said. The Dalai Lama further said he was committed to playing his part for the "just cause" of Tibet. “The decision to devolve authority has not been taken because I feel disheartened. It is to benefit the Tibetans in the longer run. I feel gradually people will

come to understand my intention and will support my decision and let it take effect,” said the spiritual leader. He has formally proposed to the Tibetan Parliament in-exile to make necessary amendments to the Charter for Tibetans-in-Exile reflecting his decision to devolve his authority. As per the Tibetan Charter, according to which the Tibetan government-inexile runs, the Dalai Lama is the head of state and also the political and administrative head of Tibetans. By devolving his powers, the Dalai Lama hopes to give the Prime Minister greater clout as the region seeks autonomy from China. The aging Dalai is concerned about the future of Tibetan struggle after him. He wants that a Tibetan leadership should evolve during his lifetime that has the acceptance of all members of the community and can take the freedom struggle further after him. However, most Tibetans, especially those living in Tibet, are still spiritual and believe in the institutions of lamas. There is also an apprehension that the political leadership elected by around 80,000 Tibetans living in exile might not have legitimacy of the people in Tibet in the absence of the Dalai Lama. They believe only a spiritual leader could take place of Dalai Lama rather than the political leadership. Japan faces its worst disaster since World War II After a cataclysm so powerful that it moved the Earth 10 inches off its axis, Japan woke to find itself a country that had, literally, been shunted two meters from where it was on March 11, 2011 morning. Neighbourhood after neighbourhood was submerged under a grotesque soup of water and debris. Homes were flattened. Tens of thousands of once orderly acres became a jumble of broken homes, cars, boats, and concrete, with shipping containers cluttering the landscape. Only 300 km from Tokyo, radiation leak from a nuclear plant crippled by an explosion threatens to convert into a major nuclear disaster. Officials were swift to assert that any meltdown, if it came, would not be on anything like the scale or severity of Chernobyl. The 8.9 Richter scale earthquake was the most monstrous that Japan, the world's most tremor-prone country, has ever recorded. This was strong enough to leave a 300 km rupture on the ocean floor. The subsequent tsunami—sending 30ft-high waves lashing into Japan's north-east coast—turned a disaster into a cataclysm. The wall of water, moving at an estimated 50 kmph, swallowed boats, homes, cars, trees and even small planes, and used these as battering rams as it charged up to 15 kms inland, demolishing all that stood in its way. The first estimates of the total insured loss caused by the quake and tsunami were put at USD 12 billion—an unwelcome burden on an economy that had just starting to show signs of revival. US and European planes hit Libya

Starting March 19, 2011, Western forces launched a series of air and missile strikes against forces of Libyan leader Muammar Gaddafi to force him to stop war on opposition forces in Libya. Earlier, on March 18, a UNSC resolution had imposed a no-fly zone over Libya. India stayed away from voting. India, along with four other countries, wanted the UNSC to wait for the report of the special envoy of the Secretary-General. India also made it clear that it was very important to fully respect sovereignty, unity and territorial integrity of Libya. Away from principles of democracy, the need to secure oil supplies and tackle a history of appeasement toward Muammar Gaddafi are some of the less-publicised reasons for Europe taking on a leadership role in prodding the world to act over Libya, analysts say. Days into the enforcement of a no-fly zone and with the US continuing to take a backseat, there is much speculation over the surprising swiftness with which France and Britain have galvanised European military action on Libya. While the UN resolution authorizing the enforcement of a no fly zone is aimed at protecting civilians and backed by the Arabs, it is also pushed by a mix of unstated personal and political factors rooted in Europe. In Britain, Prime Minister David Cameron defended committing British forces by declaring the action "necessary, legal and right". Even more than Cameron, it is French President Nicolas Sarkozy who has led calls for military intervention. His reasons could be far more personal than Cameron's: in 2007, Sarkozy became the first western leader in decades to welcome Gaddafi on an official State visit. With his approval ratings sinking to record lows and a presidential election due in summer 2012, Sarkozy has strong domestic political reasons to be seen to be acting swiftly and decisively. Italy has more reasons to be wary of events in Libya than Britain or France. Libya's most important European economic partner, Italy sources some 25 percent of its oil imports and 10 percent of its gas from Libya and billions of Euros are tied up in infrastructure and security projects in the country. Some strategic analysts, however, disagree that domestic political reasons characterize European action. "This is a European, American and Canadian action supported by a UN resolution aimed at protecting civilians—they will deny that it is about Gaddafi," said Christian Le Miere of the International Institute for Strategic Studies. Business News AT&T Inc has decided to but T-Mobile USA for $ 39 billion. The deal will give AT&T additional capacity to expand and meet ever-increasing demands for videos and data from devices such as Apple Inc’s iPhone. Berkshire Hathaway, owned by Warren Buffet, one of the world’s most successful investors, will distribute general insurance products in India through its online portal and tele-marketing arm. It has become a “corporate agent” of Bajaj Allianz General Insurance.

HDFC Ltd is the only Indian company on a list of 110 world’s most ethical companies, according to an annual survey by US think-tank Ethisphere Institute. The list does not give ranks and has 42 companies from outside USA—six from Japan. No Chinese firm could make the cut. Japanese insurance firm Nippon Life Insurance Company has decided to acquire 26% share in Reliance Life Insurance for Rs 3,062 crore. Manchester United Cafe, the franchise model bar and restaurant of the English Premier League football team, has planned to invest Rs 100 crore in India as part of its expansion. The cafe had entered the Indian market in 2010 and currently has presence in three metros. Maruti Suzuki India Ltd rolled out its 10 millionth car from its facility in Gurgaon on March 15, 2011, to become the first Indian automobile manufacturer to attain this milestone. Philippine Airlines (PAL) has entered into a code share agreement with Kingfisher Airlines. Pratip Chaudhuri has been appointed as the new Chairman of State Bank of India. Software giant Microsoft has appointed Bhaskar Pramanik as chairman for its India operations. Subway has surpassed McDonalds to become the largest restaurant chain in the world. Tata Consultancy Services (TCS) has launched iON—a fully integrated information technology solution for small and medium businesses (SMBs). Tata Motors have become the first Indian company to produce one lakh commercial vehicles in a financial year. The International Council for Small Business (ICSB) has decided to launch its operations in India through the Indian Council for Small Business and Entrepreneurship. ICSB is a global membership organisation for those interested in theory and practice of entrepreneurship and the development of small and medium enterprises. US firm Sara Lee Corp has terminated the licence of Godrej Household Products Ltd to sell Kiwi shoe care and Kiwi Kleen brands in India and Sri Lanka. US-based paper and packaging firm International Paper Co. Has picked-up 53.3% share in Andhra Pradesh Paper Mills for around $257 million. DO YOU KNOW Child sex ratio of India, as per Census 2011, is 914 females against 1000 males. This

is lowest since independence. The overall sex ratio has risen by 7 points to 940 females per 1000 males. Chinese President Hu Jintao has been named the most powerful person in the world by Forbes, ahead of US President Barack Obama, who is ranked second among 68 people "who matter", a list that also includes Congress President Sonia Gandhi and Prime Minister Manmohan Singh. Sonia ranks 9th on the Forbes 2010 list of the "world's most powerful people". Singh comes in at number 18. India's business tycoons Reliance Industries chairman Mukesh Ambani, Tata Sons chairman Ratan Tata and head of ArcelorMittal Lakshmi Mittal also make the list. Cricket is known as “ban qiu” in Chinese. Denmark is ranked first in the list of world’s happiest countries, followed by Finland, Norway and Sweden. India is ranked 115 and shares the spot with Sri Lanka and Afghanistan. Pakistan is ranked 58, while China is ranked 125. Facebook Credits is a virtual currency which enables the users of Facebook to watch films on the site or buy various applications. Beam, a mobile-commerce company has applied to the RBI for permission to make Facebook Credits available in India. Five most populated States of India are (as per 2011 Census): Uttar Pradesh, Maharashtra, Bihar, West Bengal and Andhra Pradesh. Five least populated States/UTs are: Lakshadweep, Daman & Diu, Dadar & Nagar Haveli, Andaman & Nicobar and Sikkim. In its credit policy review, on March 17, 2011, Reserve Bank of India (RBI) raised key policy rates by 25 basis points (100 basis points equals 1 per cent) for the eighth time since March 2010 to cool down inflation. It raised short-term lending (repo) and borrowing (reverse repo) rates to 6.75 per cent and 5.75 per cent, respectively. The move will make loans costlier. India now accounts for 17.5% of the world’s population. China accounts for 19.4%. India Post has launched online portal ‘e-post office’ to provide postal transactions and tracking service online. This portal will provide electronic money order (eMO), instant money order (iMO), sale of philatelic stamps, postal information, tracking of express and international shipments, PIN code search and registration of feedback and complaints online. Through this portal, DoP will also sell products, handicrafts and other products made by small-scale industries. The content of the portal is in English. The next version of the portal is expected to be launched in Bangla and Kannada language. India’s per capita income, often used to measure a country's standard of living, increased by 14.5 per cent during 2009-10 to Rs 46,492. The per capita income at factor cost is estimated as Rs 46,492 at current prices. As per the base year 2004-05, the per capita income in rural areas was Rs 16,327, while in the urban areas it stood at Rs 44,223.

India’s total population, as per the 2011 Census is 12102.2 million. Out of this 586.5 are females and 623.7 are males. Literacy rate of India, as per Census 2011 has gone up to 74.04% from 64.83% a decade ago. 82.4% is male literacy and 65.46 is female literacy. NLU-Delhi, NALSAR-Hyderabad, NLSIU-Bangalore, NUJS-Kolkata and RGSOIPL-IIT Kharagpur have come together to set up the Legal Information Institute of India. The online portal provides for 300,000 decisions from 37 courts and tribunals, 800 bilateral treaties, 500 law journal articles and much more. Over 4,000 cities, including New Delhi and Mumbai, from 131 countries turned off their lights during the global Earth Hour observed on March 26, 2011 Seismic zones are divided into zones from 1 to 5 with 1 being least active to 5 being highest. Indian N-plants at Kakrapar, Gujarat, Tarapur, Maharashtra and Kaiga, Karnataka are in zone 3. Narora in Uttar Pradesh lies in zone 4. Kalpakkam, TN, Kudankulam, TN and Rawatbhata, Rajasthan lie in zone 2. Steel tycoon Lakshmi Mittal has overtaken Mukesh Ambani to become the wealthiest Indian, according to the annual Forbes list of World Billionaires for 2011. With a net worth of $31.1 billion (Rs 1.4 lakh crore), Mittal is ranked sixth richest in the world. Globally, Carlos Slim Helu, the Mexican telecom baron stayed the richest, increasing his worth by $ 20.5 billion. India, with its 55 billionaires, has the third largest pool of billionaires, after the US and China. The 11th Info-Poverty World Conference was held in March 2011 at the United Nations. The 2011 BRICS summit was hosted by China at Sanya. The biennial Wind Power India conference was held in Chennai. The Constitution (115 Amendment) Bill, 2011, proposes to give powers to both the Centre and the States to make laws with respect of Goods and Services Tax (GST). The amendment is required as currently the Centre cannot impose excise duty beyond the manufacturing stage and the States cannot levy a tax on services. The decadal growth rate of population in 2001-11 was 17.64%. It was 21.54% in the previous decade. The density of population of India (as per Census 2011) is 382 persons per sq km. Delhi (11,297) is the densest State, followed by Chandigarh (9,252). Arunachal Pradesh is the least dense State with a density of 17. The Financial Sector Legislative Reforms Commission (FSRLC) has been set up by the Union government to re-write and clean-up financial laws of India. It is headed by Justice B.N. Srikrishna

The three-day world Sufi music festival was held on March 11-13, 2011 in New Delhi. World House Sparrow day is observed on March 20. World Water Day is observed on March 22.

NATIONAL AFFAIRS Possession of Naxal literature is not sedition, rules SC On April 15, 2011, the Supreme Court granted bail to civil rights activist Dr Binayak Sen, holding that possessing Naxal literature or visiting jailed Maoists did not amount to sedition. “If Gandhi’s books were found in my house, would that make me a Gandhian,” said Justice C.K. Prasad. Justice H.S. Bedi, who headed the Bench, clarified that the State could not slap sedition charges on Sen unless there was material to show that he was actively preaching or propagating Maoist ideals. The Bench made the remarks in connection with the State government’s contention that Sen had visited his co-accused Piyush Guha 30 times in a jail and pamphlets and documents relating to Maoist activities were recovered from his possession. The apex court said none of this amounted to seditious activities or waging a war against the State. Being a sympathiser did not make him guilty of sedition, the Bench felt. In December 2010, the trial court had sentenced Sen to life imprisonment after convicting him for sedition and having links with Naxalites. He was convicted along with Naxal ideologue Narayan Sanyal and Kolkata businessman Piyush Guha. Sixty one-year-old Sen, a child specialist who had studied medicine at the prestigious Christian Medical College (CMC) in Vellore, Tamil Nadu, has worked for 25 years in the tribal and Naxal-infested belt of Chhattisgarh. He is also the vice-president of the People’s Union for Civil Liberties (PUCL). Chinese troops in PoK worry India The presence of Chinese troops in Pakistan-occupied-Kashmir (PoK) has been causing anxiety to New Delhi, which has started strengthening infrastructure along the border. Responding to media reports about the involvement of China’s PLA (People’s Liberation Army) troops in various infrastructure projects in PoK, External Affairs Minister S.M. Krishna said that the government was seized of media reports on the subject. The Minister said India continuously reviewed and took all necessary measures to ensure the safety and security of its people, as well as the territorial integrity of the nation.

Another cause of worry for India is that China has been developing infrastructure in the border region opposite India in the Tibet and Xinjiang Autonomous Regions. This includes the Qinghai-Tibet railway line, with proposed extension up to Xigaze and Nyingchi, and development of road and airport facilities. India has also started paying special attention to the development of infrastructure in the border areas opposite China in order to meet the country’s security requirements and also to facilitate the economic development in these areas. Visit of Prime Minister Singh to Kazakhstan On April 16, 2011, during the official visit of Prime Minister Manmohan Singh to Kazakhstan, India and Kazakhstan signed seven key accords, including one on cooperation in the civil nuclear energy field and another for joint exploration in the oil and gas sector, and condemned terrorism in all its forms and manifestations and those who supported the menace. The other five accords were: joint action plan for further strengthening strategic partnership (road map), MoU between the Indian Computer Emergency Response Team (CERT-In) and the Kazakhstan Computer Response Team, treaty on mutual legal assistance in civil matters, agreement for cooperation between the agriculture ministries of the two countries and an agreement between their health ministries. Kazakhstan rolled out the red carpet for Prime Minister Manmohan Singh, who became the first top world leader to visit the Central Asian nation following the re-election of President Nursultan Nazarbayev for a fourth consecutive term. With his victory coming close on the heels of widespread pro-democracy protests in West Asia and North Africa, the Kazakh leader left no stone unturned to demonstrate his democratic credentials by inviting the envoys of nearly 50 countries to the Akorda Presidential Palace for the ceremony to accord welcome to Manmohan Singh, leader of the largest democracy in the world. From India’s point of view, it is obviously the nuclear accord that is being considered the singular achievement of Manmohan Singh’s two-day visit. Under the Indo-Kazakh nuke accord, Kazakhstan would supply 2100 tonne of uranium to India by 2014. The umbrella nuclear accord envisages a legal framework for mutually beneficial cooperation between the two sides for the peaceful use of nuclear energy, including fuel supply, nuclear medicine, use of radiation technologies for healthcare, reactor safety mechanisms, exchange of scientific and research information, exploration and joint mining of uranium, design, construction and operation of nuclear power plants. The agreement on cooperation in the oil and gas sector signed between the ONGC Videsh Limited and Kazakh national company Kazmunaigas gives effect to the transfer of participating interest of 25 per cent in the Satpayev Block from the Kazakh firm to the Indian company. The Satpayev exploration block, located in the Kazakh sector of the Caspian Sea, covers an area of 1482 sq km and is at a water depth of 6-8 meters. It is situated in a highly prospective region of the North Caspian sea and is in close proximity to major discoveries.

Visit of Prime Minister of Thailand On April 5, 2011, India and Thailand agreed to intensify their cooperation in the areas of trade and investment, education, tourism and culture and to aim towards doubling of their trade by 2014. The decisions were taken during the visit of Abhisit Vejjajiva, Prime Minister of Thailand.. The visit helped to impart a new momentum to the relations between the two countries. The two sides also agreed to expedite the conclusion of negotiations on a bilateral Free Trade Agreement that would include goods, services and investment. Prime Minister Manmohan Singh described Thailand as a close friend and a valued regional partner for India and noted that the two countries shared civilisation links and were maritime neighbours. A joint statement, which was released after the summit meeting announced the establishment of a regular High-Level Dialogue on Defence Cooperation that would consider widening the scope of cooperation in the sector. This dialogue is expected to lead to a Memorandum of Understanding on Defence Cooperation and is part of India's burgeoning defence ties with ASEAN (Association of Southeast Asian Nations) countries, South Korea and Japan. In addition to taking a closer look at the ongoing exchanges between the armed forces, the dialogue would attempt to broaden the scope of cooperation to include the Defence industry and technology. The summit meeting saw both sides agreeing to intensify “coordinated patrolling”, which would be aimed at sanitising the busy but narrow and vulnerable Malacca Straits. Ever since the September 11, 2001 attacks, naval ships from both countries jointly patrol their respective stretches to foil any piracy or disruption of shipping through the deliberate disabling of a ship. On the security side, the two Prime Ministers resolved to improve sharing of intelligence, develop more effective counter-terrorism policies and increase interaction between law enforcement agencies. In this respect, they decided to expedite discussions on some of the building blocks, such as the Extradition Treaty, the Mutual Legal Assistance Treaty in Civil and Commercial Matters. CWG Scam On April 25, 2011, the Central Bureau of Investigation (CBI) arrested Suresh Kalmadi, Member of Parliament and former chairman of the Organising Committee (OC) of the Delhi Commonwealth Games (CWG). The CBI has charged him with criminal conspiracy to buy timing, scoring and result (TSR) system from a Swiss company at an inflated cost of R141 crore. The CBI has alleged that this cost the government Rs 95 crore extra. "Investigation has revealed that the OC committee for short-listing prospective bidders for TSR was constituted by selecting handpicked officials who favoured the Swiss company while

members of the tenders evaluation committee were coerced and threatened to disqualify other bidders". The CBI had earlier arrested former OC secretary general Lalit Bhanot and director general V.K. Verma in the case. 2G Spectrum Scam Five corporate honchos, including Unitech’s Sanjay Chandra and Reliance ADAG’s Gautam Doshi, were arrested on April 20, 2011, and sent to jail after a Delhi court dismissed their bail plea saying they might tamper with evidence and even flee to avoid prosecution in the “highest magnitude” 2G Spectrum allocation scam. The court also rejected the bail plea of co-promoter of Swan Telecom Vinod Goenka and Reliance ADAG’s Surender Pipara and Hari Nair. “A bare perusal of the facts of the case and the allegations in the charge-sheet make it out a case of the highest magnitude and gravity and there is enough incriminating material on record against the accused.” The court also dealt with the arguments of defence lawyers that they be granted bail “ipso facto” (by default) as they were not arrested during the probe. The court, however, concurred with CBI’s apprehension that the accused might tamper with the evidence “by trying to win over witnesses. On April 25, 2011, the Central Bureau of Investigation (CBI) named DMK Member of Parliament Kanimozhi as a co-accused in the supplementary charge-sheet filed by it before the special CBI court in the 2G Spectrum case. Kanimozhi has been charged under Section 7 and 11 of the Prevention of Corruption Act (PCA), which relates to acceptance of alleged gratification. Besides Kanimozhi, Kalaignar TV Managing Director Sharad Kumar, and Karim Morani of Cineyug Films (Pvt) Ltd were also charge-sheeted. CBI disclosed in the charge-sheet that Rs 200 crore connected with the 2G Spectrum had travelled from DB Realty to Kalaignar TV which has Kanimozhi, Dayalu Ammal and Sharad Kumar (MD Kalaignar TV), with 20, 60 and 20 per cent shares in the channel, respectively. Answering the question as to why Dayalu Ammal, wife of Tamil Nadu Chief Minister K. Karunanidhi has been left out in the charge-sheet, while the other two stakeholders of the channel (Kanimozhi and Sharad Kumar) have been charged, CBI said that “Dayalu Ammal does not have a single signature on any paper that we have come across. All the papers, wherever required, have been signed by Sharad Kumar. She cannot understand any language besides Tamil and we had a hard time questioning her. Under such circumstances, it is highly unlikely that she could have been part of the conspiracy”.

INTERNATIONAL AFFAIRS President Saleh of Yemen agrees to step down

On April 24, 2011, Yemen's embattled President agreed to a proposal by Gulf Arab mediators to step down within 30 days and hand power to his deputy in exchange for immunity from prosecution. A coalition of seven opposition parties said they also accepted the deal but with reservations. Even if the differences are overcome, those parties do not speak for all of the protesters seeking President Ali Abdullah Saleh's removal, and signs were already emerging that a deal on those terms would not end protests. Under the latest draft, Yemen's Parliament would grant Saleh legal protection from prosecution. The President would submit his resignation to lawmakers and hand power to his Vice President, who would call for new Presidential elections. BRIC expands to BRICS BRIC, the grouping of the four countries thought to radiate the largest lessons in developing an economy–Brazil, Russia, India and China–has decided to transform itself to BRICS, with the much-awaited induction of South Africa into the cohort, making it more representative. Started in year 2009, the 2011 summit, held in Sanya on south China's tropical island of Hainan on April 13-15, was the first one for South Africa. Bringing South Africa makes the grouping more representative of the emerging powers from all the developing regions. All of them are members of the G-20, the high table of global economic policy coordination. This gives them a significant clout. If they can coordinate their positions in G-20 Summits, they will be more effective. Although the BRICS grouping is in a nascent stage it has been able to emerge as an important voice. BRICS represent the world’s fastest growing market, comprising 44 per cent of the world population. All of them are members of the UN, of which two are permanent. Experts say all the member-countries must take advantage of the moment and come out with a clear map for long-term sustenance. And, that the grouping should take a leadership role in closing the Doha round of multilateral trade deals under World Trade Organisation (WTO). Besides, focusing on financial cooperation and an effective mechanism for global development, the leaders also dwelled on some of the recent events around the world, such as the unrest in West Asia, turmoil in North Africa and the disaster in Japan. Leaders of BRICS countries adopted a far-reaching declaration that, among other things, called for restructuring of international financial institutions to reflect changes in the world economy, thus increasing the voice and representation of emerging economies. The cooperation among BRICS countries was neither directed against nor was at the expense of anyone, Prime Minister Manmohan Singh said while addressing the plenary of the BRICS leaders. Recognising that the international financial crisis has exposed the inadequacies and deficiencies of the existing international monetary and financial system, the leaders supported the reform and improvement of the international monetary system, with a

broad-based international reserve currency system providing stability and certainty. At a joint press conference by summit leaders, Prime Minister Manmohan Singh announced that the designated banks of BRICS nations have signed a framework agreement on financial cooperation which envisaged grant of credit in local currencies and cooperation in capital markets and other financial services. Under the agreement, banks in each country would work out modalities so that projects and loans could be encouraged in other BRICS nations, if national laws permit them to do so. The five nations also signed an MoU on BRICS long-term business contacts to facilitate trade amongst them. The FICCI will be the focal point for this on the Indian side. The Chinese leader also sought to dispel the impression that BRICS wanted to emerge as a grouping aimed at countering leading global economies The BRICS countries also resolved to carry out closer cooperation on food security, support development and use of renewable energy resources, and recognise its importance as a means to address climate change. Supporting the G-20 initiative, the BRICS leaders desired that the grouping should play a bigger role in global economic governance as the premier forum for international economic cooperation. In an action plan, the five nations decided to hold a meeting of high representatives for security issues in the latter half of 2011 in China, engage in joint research on economic and trade issues, encourage cooperation in sports and promote cooperation in scientific, technological and innovation cooperation in BRICS format. Business News Mahindra & Mahindra (M&M) has renamed its Logan car as Verito. Anup Bagchi has taken over as the MD and CEO of ICICI Securities. Veteran banker K.V. Kamath has been appointed as the Chairman of Infosys, in place of founder N.R. Narayana Murthy. S.D. Shibulal has been elevated as the CEO and MD. Ashok Soota, the ousted chairman of the Bangalore-based software major MindTree,has launched a new company by the name of Happiest Minds Technologies Pvt Ltd with a mission to “creating the happiest customers and the happiest team”. Italian luxury sports car maker Maseratihas announced its foray into the Indian market with its complete range of cars. The latest Nielson corporate image monitor has rated Tata Steel as the best in a list of Indian firms, followed by Tata Motors and Aditya Birla Nuvo. Wipro retained the fourth rank and Bharti Airtel was ranked fifth.

The Union Ministry of Defence has signed a Rs 1,904-crore contract with Tata Power’s Strategic Electronics Division (Tata Power SED) for modernising 30 Indian Air Force airbases across India. The project is officially called Modernization of Airfield Infrastructure (MAFI) Leading global consumer goods firm Reckitt Benckiser Group plc. has appointed Indiaborn Rakesh Kapoor as its global CEO. DO YOU KNOW As many as 57 Indian companies, including Reliance Industries, State Bank of India and ONGC figure in The Forbes Global 2000 list of public companies based on their rankings for sales, profits, assets and market value. Other companies in India's top ten were ICICI Bank, NTPC, Coal India, Bharti Airtel, Larsen & Toubro and Tata Motors. JP Morgan Chase is in the top spot for the second consecutive year as the world's largest company, followed by HSBC. According to International Monetary Fund (IMF) India’s economic growth rate will moderate to 8.2 per cent in 2011, mainly because of tight monetary policy measures. The Ashoka Pillar in Delhi was uprooted from Topra village near Yamunanagar, Haryana by Feroz Shah Tughlaq in 14th century and taken to Feroz Shah Kotla in Delhi. According to Tuglaq’s court historian Shams-i-Siraj, author of Tarikh-i-Feroze Shahi, the pale pinkish sandstone pillar was ferried to Delhi by 8,000 people. The Delhi pillar is the only Ashoka pillar that has seven edicts issued by Ashoka. The rest of Ashoka pillars have only six edicts. The ancient Brahmi script used to write on the pillars was first deciphered on Ashoka pillar at Delhi by a British expert James Prinsep in 1837. The Union Finance Ministry has introduced simpler income tax return forms ‘Sahaj’ and ‘Sugam’. While ‘Sahaj’ is for salaried people, ‘Sugam’ return form is applicable for small businessmen and professionals covered under presumptive taxation. With only 17 per cent people describing themselves as “thriving”, India ranked 71 in a new Gallup study on overall well-being conducted in 124 countries. According to the study, which combined the results of Gallup's 2010 global well-being surveys, majority of Indians (64 per cent) believe they are “struggling” while 19 per cent think they are “suffering”. Pakistan, whose economy is in tatters, has been ranked as the 40th happiest nation in the world. With only 12 per cent happy respondents, China is ranked 92. Denmark topped as the most contented. Sweden and Canada ranked as the second happiest countries, followed by Australia, Finland and Venezuela. The African nation of Chad remained at the bottom of the list with less than one per cent reporting they were thriving. BRIC or the group of four most developing countries—Brazil, Russia, India, China—has transformed itself to BRICS with induction of South Africa. Indira Gandhi Scholarship Scheme offers scholarships to single girl child for post-

graduate studies. Earlier the scholarship was offered to 1200 single girl children in a year. Now the UGC has decided to lift the cap and open the scholarship programme to all girls who meet the eligibility criteria. India’s exports for 2010-11 have clocked $245.9 billion registering a growth of 37.5 per cent. This is the first time exports have crossed $200 billion.

World Heritage Day, also known as the international day for monuments, is observed on April 18. World Health Day is observed on April 7. World Haemophilia Day is observed on April 17. Haemophilia is a genetic blood disorder in which blood does not clot properly. Civil Services Day is observed on April 21. May 2011 NATIONAL AFFAIRS RBI paves way for financial holding company The Reserve Bank of India (RBI) has paved the way for a holding company structure for financial entities. But it was done with an important caveat—the apex bank has sought to be the sole regulator of financial holding companies (FHCs), irrespective of a bank’s presence in the holding company. In addition, it has called for a separate regulatory framework and a new Act for regulation of FHCs. A working group headed by RBI Deputy Governor Shyamala Gopinath has recommended that the FHC model can be extended to all large financial groups, irrespective of whether they have a bank or not. RBI feels that the implicit mandate of the central banks to ensure financial stability and monitor systemic risks makes it imperative to vest the responsibility of regulating FHCs with RBI. A holding company structure would ring-fence a bank or any other financial entity from the downside risks of its subsidiaries. It has been suggested that a separate unit within RBI should undertake the function of FHC regulation, with staff drawn from both RBI as well as other regulators. Till the time a new law is enacted and existing regulations are amended, the panel wants the FHCs to be registered with RBI as non-banking financial companies, while financial conglomerates having a bank within the group will need to convert to the FHC model in a time bound manner. In cases the business conglomerates do not want to convert to FHCs, the panel wants such entities to confine to only banking activities.

For all other banking groups, conversion to the FHC model may be optional till the enactment of the FHC Act. However, all new banks and insurance companies, as and when licensed, will be mandatory to operate under the FHC framework. In case the holding company wishes to function as an anchor for capital support for all its subsidiaries, the panel proposes either to have the holding company listed with the subsidiaries unlisted or some of subsidiaries listed along with the holding company. Since the transition to the FHC model would involve de-merger of various bank subsidiaries and transfer of ownership from bank to the holding company, the panel has suggested suitable amendments to various taxation provisions to make the transition tax and stamp duty neutral. In addition, the working group proposes exemption of dividend distribution tax for dividends paid by subsidiaries to the FHC if the dividends are used by the FHC for investment in other subsidiaries. State Elections, 2011 The results of Assembly elections declared on May 13, 2011 signaled a vote for change and a vote against corruption and poor governance. The spectacular rout of the Left in West Bengal and of the DMK in Tamil Nadu, however, overshadowed an equally spectacular vote for continuity in Assam. Four of the five governments seeking renewed mandate in the States were tossed out by the electorate, with only the Congress government in Assam returning to power for the third consecutive term. And barring a photo-finish in Kerala, where the Congress-led United Democratic Front barely secured a majority, the voters dished out clear and decisive mandates in West Bengal, Tamil Nadu, Assam and Puducherry. West Bengal: The Mamata juggernaut steamrolled the Left Front in West Bengal, dislodging the longest communist government in a democratic country after 34 long years. With her call for ‘Poribartan’ (change), Mamata (56) swept everything before her, ensuring the victory of even political greenhorns like Anup Ghoshal (singer), Bratya Basu (playwright) , Amit Mitra (economist and FICCI secretary general), Upen Biswas (former Joint Director of the CBI), Debashree Roy and Chiranjeet (cine stars), Sultan Singh and Rachpal Singh (retired IPS officers) and even Manish Gupta, a retired IAS officer and Chief Secretary, who defeated Chief Minister Buddhadeb Bhattacharjee. Buddhadeb Bhattacharjee became the first Chief Minister since 1967 to lose his seat in the Assembly. Other CPM stalwarts who lost included industry minister Nirupam Sen, who spearheaded the land acquisition for Tata Nano at Singur, Housing minister Gautam Deb, IT minister Debesh Das and urban development minister Ashok Bhattacharya. The TMC-Congress combine won 225 of the 294 Assembly seats, up from 52 in the last Assembly. The CPM+ could manage only 63 seats against 229 in the out-going Assembly.

Tamil Nadu: The J. Jayalalithaa-led AIADMK front struck the DMK-Congress combine like a tsunami and won a landslide victory in Tamil Nadu Assembly elections, sweeping everything on its way, including the freebies, cash-for-votes and caste politics. The AIADMK, which contested 160 seats in the 234-member Assembly, won 151 seats. As the Jaya juggernaut rolled throughout Tamil Nadu, most of the DMK ministers, including Deputy Chief Minister M.K. Stalin, bit the dust, while Chief Minister M. Karunanidhi was elected to the Assembly for the 12th time from his native town of Tiruvarur. The DMK government’s free colour TVs, Re 1 a kg rice, medical insurance, marriage assistance and other populist schemes failed to bring it back. The ruling DMK, which won 96 seats last time, was routed this time, winning only 23 seats in the 234-member Assembly. AIADMK’s ally and actor Vijaykanth’s DMDK came out with flying colours, winning 28 of the 41 seats it contested. The other allies of the AIADMK, the CPM, which contested 12 seats, won 10 and the CPI, which fielded candidates in 10 constituencies, emerged successful in eight. The Congress was decimated, winning only five of the 63 constituencies it contested. Kerala: In a photo finish, the Congress-led United Democratic Front (UDF) unseated the CPM-led Left Democratic Front (LDF), winning 72 seats in the 140-member Assembly, the thinnest majority margin in the last four decades. The UDF, which had won 16 of the 20 Lok Sabha seats two years ago and over 50 per cent local bodies in the civic body polls held six months ago, had hoped to sweep the election by cashing in on the disenchantment of the people against the incumbent government. The UDF, however, lost the political momentum after Chief Minister V.S. Achuthanandan raked up old scandals involving several senior UDF leaders. The scandals put the UDF on the defensive. Instead of focusing on the failures of the government, the Opposition tried to attack the Chief Minister and his family members. However, the campaign did not click in the face of massive corruption scams emanating from the UPA dispensation. The determined effort made by the BJP to prove its strength in the State also affected the UDF to a great extent. Though the BJP was not been able to achieve its objective of opening its account in the Assembly, the party considerably improved its vote share in several seats. This affected the UDF all the more. Political observers feel that the victory of the UDF by a slender margin will plunge the State into political uncertainty. They believe that the Congress, which has won only 38 seats, may not be able to withstand the political pressures from small parties, especially those with one or two seats in the Assembly. Assam: It was a hat trick for the Congress in Assam and that too in the form of a landslide victory, thanks to leadership of Tarun Gogoi who has become the Chief

Minister for the third consecutive term at the age of 75. The Congress government’s policy to take the party closer to the common people, especially those from rural areas and from the lower income bracket, apparently paid rich dividends to the party in the election though the opposition parties had sounded skeptical about those schemes, terming those as “sops only meant for Congress members”. Some of these included laptops to all students who have passed Class X Board exams in the first division, bicycles for girl students, cash incentives against every girl child born in government hospitals, cash incentives to pregnant women, working capital to unmarried women and young widows, free thread to BPL weavers, mosquito nets and blankets to BPL families and umbrellas to students from BPL families. Moreover, massive improvement in healthcare system in the State during the last 10 years, successful implementation of mobile health clinics to take health care to far flung areas and introduction of emergency healthcare scheme were instrumental in endearing the Congress to the common man. The Gogoi government’s achievement in tackling insurgency in the State by bringing in many insurgents groups to the negotiation table, coupled with firm initiatives in improving infrastructure development in the State during the last 10 years also paid dividends for the party. The AGP and the BJP failed to make any impact in the election because the entire Opposition failed to forge an alliance to present a viable alternative before the people. To make matters worse for the Opposition, the regional AGP was dogged by internal squabbles. The regional party instead of giving chances to young leaders preferred to field old horses, who had already been rejected by the people in the 2001 and 2006 elections. Congress has won 76 Assembly seats in the 126-member Assam Assembly. AGP got 10 and BJP only 4. Independents and others together got 36 seats. Puducherry: Making a spectacular electoral debut, the All India NR Congress in alliance with AIADMK secured a two-third majority in the 30-member Puducherry Assembly, ending the DMK-supported Congress rule. Former chief minister N. Rangasamy led the AINRC he formed on the eve of the polls to power with the party winning 15 seats and its ally AIADMK five. The Congress ended with a tally of seven and DMK two. DMK rebel VMC Shivakumar won the Neravi TR Pattinam segment. It was a sweet revenge for Rangasamy who floated his own outfit after resigning from the Congress about two years after he was removed as Chief Minister in the face of revolt against his leadership.

SC quashes Speaker’s decision to disqualify Karnataka MLAs On May 13, 2011, the Supreme Court of India set aside Karnataka Speaker K.G. Bopaiah’s decision to disqualify 16 MLAs, including 11 rebel BJP and five Independent MLAs, ahead of the no confidence motion in 201 that had ensured survival of the Yeddyurappa government. A Bench, comprising Justices Altamas Kabir and Cyriac Joseph, ruled out that the Speaker had failed to observe the basic constitutional values and principles of natural justice, while disqualifying the MLAs under the Anti-Defection Act. The MLAs were disqualified as it was apprehended that they would support the no-trust motion against the government during the voting. The 16 MLAs had withdrawn their support to the government on October 6, 2010 and were suspended on October 11. In their appeal, the MLAs had contended that their disqualification had raised substantial questions of constitutional and administrative laws of public importance having serious implications for the democratic representative government and involving an interpretation of the provisions of the Tenth Schedule and the rules made there under. The legislators had submitted that they had made a categorical statement in their replies to the show-cause notice issued by the Speaker before their suspension that they had no intention at all to leave BJP or the membership of its legislature party and that their letter to the Governor was aimed at "cleansing the image of the party by getting rid of Yeddyurappa as Chief Minister." According to the petition, democratic dissent, without any intention of leaving the party but in the hope of saving its image and reputation by getting rid of a "corrupt" Chief Minister, cannot be regarded as voluntarily giving up the party membership as such. It was submitted that they were disqualified before the voting actually took place in the Assembly apprehending that they would vote against the Chief Minister on the specious ground that they had voluntarily given up BJP membership. The SC also held that the Independents had not “sacrificed their independent identity” by extending support to Yeddyurappa or by joining the Council of Ministers. Rising food prices and poverty line For a country that has been reeling under the impact of higher food prices, here are some chilling numbers. Food prices single-handedly seem to have considerable power to reverse our progress as an economy. The price rise in food staples between June and December 2010 could have pushed as many as 10 million more Indians into poverty. In its recent report “Estimating the short-run poverty impacts of the 2010-11 surge in food prices”, the World Bank estimates that the price increases in the second half of 2010 have increased the poverty head count in India by 0.8 percentage points. We infer the increase in the number of poor from their data measure on total population (1.19 billion) and the poverty rate used for their analysis (43.8%). Typically, given that poor households spend a majority of their income on food, rising food prices hit them the

hardest. Sugar, rice and wheat price increases have also resulted in a rise in the poverty headcount in India. And this is despite the fact that price hikes in India are nowhere near global levels. However rising import prices of food will compound the inflation situation further. The prices of sugar, rice and wheat globally have increased between 20-75%, but in India price increases for all three are at sub-10% levels. This is an alarming wake-up call for a country that has not seen abatement in food price increases even now. Food inflation jumped to a two-month high of 9% in terms of annual growth recently. Seems like anti-poverty schemes also increase the levels of poverty when they push prices up. The key number to look for is how much they reduce poverty and how much they increase it through wage-price inflation. Panel recommends FDI in retail On May 27, 2011, the Inter-Ministerial Group (IMG) suggested two major steps to control inflation including opening up multi-brand retail to foreign companies and changes in agriculture marketing laws to bridge the margin between farm gate prices and retail price. The IMG warned that though it was important to allow the entry of FDI into this sector in a properly regulated fashion and there is a need to guard against the risk of these new corporations becoming monopolistic and charging high prices. “We are taking a clear position on FDI in multi-brand retail. Of course, it is a recommendation, not policy,” chief economic advisor and IMG chairman Kaushik Basu said. The debate on opening up the retail sector has been going on for a while now but is being strongly opposed by the domestic lobby that says that large MNC retail formats like Walmart coming in will wipe out the neighbourhoodkiryana stores, which are huge in numbers and form an important constituency. The IMG said that the APMC Act ought to be amended so as to enable farmers to bring their products to retail outlets and also allow retailers to directly purchase from the farmers, without facing blockades by incumbent traders. The APMC system has abetted monopolistic behaviour and reduced the choices available to small farmers. The wellintentioned APMC law helped cartelisation and collusion amongst incumbent traders, the group said. The group IMG recommended that the government consider this at the earliest. Its logic is that India’s retail sector continues to be primitive and there is evidence that there are large losses that occur as products pass through the supply chain from farm to the retail customer.

This will get new technology and expand organised retail and provide remunerative prices for farmers and fair prices for consumers especially during the peak marketing season. Once large corporations begin to source their products from Indian outlets it is very likely that they will gradually take these products to sell in their outlets in other countries, opening up exports. The IMG said that correcting the margin between the price that farmers get and price that consumers pay is not going to solve the problem of inflation for all times to come but it can have a sharp desirable effect in the short run of bringing down food inflation. Visit of President of Uzbekistan On May 18, 2011, during the visit of Mr Islam Karimov, President of Uzbekistan, India and Uzbekistan entered into a long-term and strategic partnership based on equality and mutual understanding and concluded as many as 34 agreements in diverse fields, including pharmaceuticals and hydrocarbons. The two countries also agreed to cooperate closely in stabilising the situation in Afghanistan and condemned terrorism in all its forms and manifestations. Uzbekistan reaffirmed its support for India’s candidature for a permanent seat on the UN Security Council. The two sides also resolved to expand their cooperation within the framework of the Shanghai Cooperation Organisation (SCO). India is currently an observer at the SCO and is keen to become a member of the six-nation Central Asian organisation. Great importance is being attached to the establishment of the strategic partnership which envisages active cooperation in a wide spectrum on areas, including political, counter-terrorism, economic, education, health, human resource development, energy, science and technology, tourism and culture. Prime Minister Manmohan Singh’s Afghanistan visit Prime Minister Manmohan Singh visited Afghanistan on May 12, 2011, on a two-day trip to reassure the Hamid Karzai government of New Delhi’s commitment to help stabilise the situation there. In a statement on the eve of his departure, the PM asserted that India could not remain unaffected by developments in Afghanistan, emphasizing that New Delhi took a longterm view of its partnership with the embattled country. “The quest of the Afghan people for peace, stability and reconciliation needs the full support of all countries in the region and the international community,” he said. The PM held wide-ranging discussions with the Afghan leadership on ways to advance India’s partnership to a new level in the coming years. “We will also exchange views on developments in the region and our common fight against the scourge of terrorism.”

The visit took place three days after Manmohan Singh discussed with US President Barack Obama on phone the situation in the region in the aftermath of the killing of the Al-Qaida chief deep inside Pakistan. The visit was initially scheduled to take place in the first week of May but the American side had apparently advised New Delhi to postpone it without disclosing anything about the impending action by US forces in Abbottabad (Pakistan) in which bin Laden was killed. India has become a key ally of the Afghan government since the fall of the Taliban regime, spending more than $ 1.3 billion in Afghanistan to help build highways, hospitals and the electricity grid. It is now the sixth largest contributor to Afghanistan’s reconstruction programme. During the visit Prime Minister Manmohan Singh announced a fresh aid package of $500 million for Afghanistan with focus on social sector, agriculture, capacity building and infrastructure projects. Second Africa-India Summit On May 24-25, 2011, Prime Minister Manmohan Singh attended the second Africa-India Forum Summit in Addis Ababa, Ethiopia. A ministerial meeting, in which Anand Sharma, Minister for Commerce & Industry, led the Indian side, preceded it. Addressing the meet, Prime Minister Manmohan Singh made a strong call to African countries to work collectively with India to combat the scourge of terrorism. "Apart from bilateral cooperation, India and Africa can and should work together on regional and international issues," he said at the retreat attended by leaders from 15 African countries. Mr Singh also highlighted the need to chart new pathways of engagement, take stock of the global economic and political situation and review the progress the two sides have made in their cooperation in the last three years. Singh noted that the current international economic and political situation was far from easy, particularly for developing countries and spoke about "new challenges" confronting the world in meeting the requirements of food and energy security. Manmohan Singh announced a mammoth $5 billion credit line to Africa for various development projects, reflecting India’s growing ties with the resource-rich continent. He also declared an additional $700 million package to establish new institutions and training programmes across the continent. Major sops offered during the Summit meeting were:
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$5 billion line of credit for 3 years Additional $700 million for new institutions, training programmes $300 million for Ethio-Djibouti rail line India-Africa virtual university with 10,000 new scholarships

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India-Africa business council $2 million for African Union mission in Somalia Increased access of African airlines to India in next 3 years India-Africa food processing and textiles clusters More than 22,000 scholarships to African students An India-Africa centre for medium-range weather forecasting, university for life and earth sciences, institute of agriculture and rural development Soil, water and tissue-testing laboratories, regional farm science centres, seed production-cum-demonstration centres, material testing laboratories for highways Institutes for English language training, information technology, entrepreneurship development and vocational training Rural technology parks, food testing laboratories, food processing business incubation centres and centres on geo-informatics applications and rural development.

The eight-page Addis Ababa Declaration adopted at the end of the two-day Africa-India Forum Summit said the African members of the UN Security Council and India affirm their commitment to coordinate closely during India's tenure as non-permanent member of the Council. “In this context, we underscore the imperative of urgent and comprehensive reform of the UN system. We share the view that the UN should function in a transparent, efficient and effective manner and that the composition of its central organs must reflect contemporary realities.” “The expansion of the UN Security Council, in permanent and non-permanent categories of membership, with increased participation of developing countries in both categories, is central to the process of reform and for enhancing the credibility of the United Nations,” the declaration read. The joint declaration also expressed support for an International Convention prohibiting the development, production, stockpiling and use of nuclear weapons, leading to their destruction. It called for negotiating specific steps to reduce and finally eliminate nuclear weapons, leading to a world free from all weapons of mass destruction as envisaged in the Rajiv Gandhi Action Plan of 1988. The first India-Africa Forum Summit in New Delhi in April 2008 produced a ‘Framework of Cooperation’. However, bureaucratic procedures in the African Union and in India slowed down the momentum. It took the two sides two years to finalize the joint ‘Plan of Action,’ overshooting the deadline by a year. But thereafter, more concerted efforts have been evident. Throughout 2010, New Delhi played host to Presidents and Prime Ministers from Africa. India’s Vice-President as well as key ministers also travelled to several African capitals. With Africa’s rise no longer in doubt, India is concentrating on building partnerships at bilateral, regional and continental levels and not seeking a role in internal affairs of African States or intra-African conflicts. It reacted cautiously during the recent troubles in Tunisia, Egypt, Libya and the Ivory Coast. Africa is host to 90% of world’s Cobalt, 50% of Gold, 98% of Chromium, 64% of Manganese & 34% of Uranium. Trade between India and Africa crossed US $ 46 billion in 2010 and is expected to reach US $ 70 billion by 2015.

Indian private sector entrepreneurs have already made investments in excess of US $ 25 billion in a wide range of sectors from telecom, automobiles, IT, pharmaceuticals and agriculture. Bharti’s $ 8.5 billion acquisition of Zain in Africa is one of the largest outbound investments by India. According to a FICCI study, Africa is on the brink of an economic take off. At present India’s OFDI is the 9th largest source of FDI into Africa. Among the Indian groups that have substantial presence in Africa include Bharti Airtel, Karuturi Global, the world’s largest producer of cut-roses, Tata Africa Holdings also has a strong presence in over 10 African countries with investments exceeding US$ 100 million. Essar has steel, oil and gas and telecom assets across Africa. The other players include M&M, Larsen & Toubro (L&T) and Shapoorji Pallonji. Visit of German Chancellor Angela Merkel On a 24-hour visit to New Delhi on May 31, 2011, German Chancellor Angela Merkel tried to hard sell the Eurofighter Typhoon jets to India as she discussed a whole range of issues with Prime Minister Manmohan Singh, including the situation in Afghanistan and Pakistan in the wake of the killing of Osama bin Laden. Four accords were signed during her visit to expand cooperation in the fields of education, research and nuclear physics between India and Germany. The meeting between the two leaders also marked the launching of the first intergovernmental consultations between the countries on the entire gamut of bilateral relations—from security, defence policy, trade, vocational training, education and research to infrastructure and sustainable energy and environment technologies. Chancellor Merkel also received the prestigious Jawaharlal Nehru Award for International understanding for 2009. “I accept this award not only as an honour to the Chancellor, but especially as a tribute to the achievements of my fellow citizens in fulfilling the values of friendship and international understanding that the award recognises,” said Merkel. She also formally launched the ‘Year of Germany in India’ with Lok Sabha Speaker Meira Kumar. The leaders of the two countries agreed to boost trade between the two countries to 20 billion Euros by 2020 from the present volume of 15 billion Euros. The meeting came a day after Germany announced it would phase out all its 17 nuclear plants by 2022. Merkel agreed to help India in areas related to nuclear safety and pledged support for the development of renewable energy. Chancellor Merkel was also appreciative of the role being played by India in the reconstruction programme under way in Afghanistan. She said a military solution was not an option in Afghanistan. Ultimately, Afghanistan would have to develop its own independent security architecture.

Indo-Pak defence talks In the month of May 2011, India and Pakistan began their first attempt in three years to demilitarize the Siachen glacier, the world's highest battlefield in the Himalayan region, that has claimed the lives of hundreds of soldiers. Here are some main facts about the Siachen glacier region:
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Siachen is in the northern part of Kashmir. Muslim-majority Kashmir is at the heart of hostility between India and Pakistan and was the cause of two of their three wars (the third was over the founding of Bangladesh). Indian and Pakistani forces, estimated to number between 10,000 and 20,000 troops combined, have faced off against each other in mountains above the Siachen glacier in the Karakoram range since 1984. The no-man's-land of Siachen is 20,000 feet (6,000 metres) above sea level. Military experts say the inhospitable climate and avalanche-prone terrain have claimed more lives than gunfire. The strategic importance of the glacier is debatable, military experts say. Until 1984, neither side had troops there. Both countries agree on a need to demilitarize the glacier, but neither side wants to take the first step. India controls the heights and is loath to withdraw for fear Pakistan might walk in. India says it is unwilling to bring its forces down until Pakistan officially authenticates the positions they hold. Pakistan has said it is willing to do so on the condition that it is not a final endorsement of India's claim over the glacier, a source of melt water for Pakistan's rivers.

Prime Minister Manmohan Singh’s Tanzania visit On May 27, 2011, during the three-day visit of Prime Minister Manmohan Singh to Tanzania, India announced a new line of credit of $180 million for Tanzania and signed a pact on avoidance of double taxation as the two countries agreed to intensify cooperation to combat terrorism and piracy and work closely for comprehensive UN reforms. Prime Minister Manmohan Singh said after wide-ranging discussions with Tanzanian President Jakaya Kikwete that the new line of credit will be for water supply projects in country's capital Dar-e- Salaam. Addressing a joint press conference with Kikwete, Prime Minister voiced concern over the two major problems of terrorism and piracy both countries faced and said they have decided to intensify consultations and coordination to combat such threats. Kikwete felt that threats from piracy had never abated in the region and said it was agreed that there should be stronger collaboration through intelligence-sharing and other mechanisms.

On the issue of UN reforms, Kikwete reaffirmed Tanzania's support for India's candidature for permanent membership. 2-G Scam: Kanimozhi lands in jail On May 20, 2011, the CBI Special court hearing into the 2G Spectrum allocation scam dismissed the bail application of DMK MP Kanimozhi. She was arrested and sent to Tihar jail. Denying her bail, the judge said there was a possibility of witnesses being influenced considering the "magnitude" of the crime. 43-year-old Kanimozhi is daughter of former Chief Minister of Tamil Nadu Karunanidhi's second wife Rajathi. The judge also rejected the bail plea of Sharad Kumar, MD and CEO of Kalaignar TV Private Ltd, who along with Kanimozhi, faces the charge of conspiracy and bribery in accepting Rs.200 crore from DB Realty ordering their arrest “forthwith”. Kanimozhi and Kumar, both of whom are 20 per cent stake holders in Chennai-based Kalaignar TV have been charge sheeted by the CBI of having received Rs. 214 crore in “illegal gratifications” from Dynamix Balwa (DB) Realty, a company promoted by Shahid Usman Balwa and Vinod Goenka, one of the beneficiaries of 2G Spectrum allocation. As per CBI, DB Group’s Swan Telecom was ineligible for a 2G Spectrum licence and Rs. 214 crore was paid to Kalaignar TV in lieu of the licence granted by the then Telecom Minister A. Raja, who is also a DMK member and close to Kanimozhi. India ratifies UN protocol against human trafficking India has ratified the United Nations Convention against Transnational Organized Crime and its three protocols, including one to combat trafficking in persons. The Convention remains, by far, the most potent international instrument in the fight against trans-national organised crime. Currently, human trafficking is the third largest organised crime in the world after the narcotics trade and illicit arms trading. Together, these crimes generate annual revenue of $ 9.5 billion, with the share of human trafficking gradually rising. For India, the development is significant considering it took 12 years to ratify the Convention, which is supplemented by protocols to combat human trafficking; migrant smuggling and illicit trafficking in firearms. The fact that India has ratified the ‘Protocol to Prevent, Suppress and Punish Trafficking in Persons, especially Women and Children’ means the country would now have to evolve a comprehensive anti-trafficking legislation that conforms to international standards and provisions. Right now, the laws are unclear. It would also have to find ways to train law enforcers who continue to book trafficked women under the provisions of Immoral Traffic Prevention Act, rather than booking them under provisions of the law which would see them as “victims” and not “offenders”. The National Human Rights Commission says only 6.6 per cent of the country’s law enforcers have any kind of training in trafficking issues. Most rescued victims currently have little access to rehabilitation and care, which means

even after being freed, they run the risk of getting back to brothels. A woman caught under the ITPA for example is required to pay a fine to walk free. Because she has no money, her brothel owner walks in again promising to rescue her from jail provided she agrees to return to sex work.

INTERNATIONAL AFFAIRS Germany to abandon all N-power Germany, Europe’s biggest economy, will shut down all its nuclear power plants by 2022, a decision that would make it the first major industrialised power to go nuclear-free in the aftermath of the atomic disaster in Japan. Germany’s coalition government announced the decision after seven hours of negotiations that stretched into the small hours at Chancellor Angela Merkel’s office. “We want the electricity of the future to be safe, reliable and economically viable,” Merkel said. Merkel pushed through measures in 2010 to extend lifespan of the country’s 17 reactors, with the last one scheduled to go offline in 2036, but she reversed her pro-nuclear stance after the earthquake and tsunami crippled the Fukushima Daichi plant on March 11, 2011, triggering nuclear meltdowns. Germany’s energy supply chain “needs a new architecture,” necessitating huge efforts in boosting renewable energies, efficiency gains and overhauling the electricity grid, Merkel said. To make up for the loss of nuclear energy, the German government will begin to switch to renewable energy and increase investments in energy research. G-8 Summit The 37th G-8 summit was held on May 26-27, 2011 in the commune of Deauville in France. The G-8 is comprised of the eight main industrialised countries: Canada, France, Germany, Italy, Japan, Russia, the United Kingdom and the United States. The Middle East and North Africa, nuclear safety and economic recovery topped the agenda of G-8 leaders. G-8 countries and multilateral development banks pledged $20bn in backing for democratic reform, with the EU offering new. The G8 also endorsed the EU's call for worldwide stress tests on nuclear power plants as part of a review of international safety standards. The G-8 partners shared the EU's resolve to strengthen the multilateral system and liberalise free trade in line with the World Trade Organisation's 2001 Doha mandate, which calls for a fair global trade deal. On the impetus of the President of the French Republic, the members of the G-8 have committed, within the framework of the "Deauville Partnership", to helping the Arab

countries in their transition to free and democratic societies. Tunisia and Egypt are the first countries to commit to this transition and to join the "Deauville Partnership". The multilateral development banks are prepared to raise more than USD 20 billion, of which EUR 3.5 billion will come from the EIB, to benefit Egypt and Tunisia by 2013. Osama bin Laden killed by US forces inside Pakistan On May 2, 2011, Osama bin Laden, the leader of Al-Qaida and the most recognisable face of global terrorism, was killed in a US military operation at a heavily fortified compound, around 60 km north of Islamabad. The operation was wrapped up in 40 minutes and the US team left with Laden’s body. Three adult males—two Qaida couriers and a son of Laden—and one woman were killed in the operation. Laden's body was buried at sea. US President Obama said. “On nights like this one, we can say to those families who have lost loved ones to Al-Qaida’s terror: Justice has been done”. Laden’s death came almost 10 years after Al-Qaida’s deadliest act of terrorism — attacks on the World Trade Centre’s twin towers in New York City and the Pentagon — killed nearly 3,000 persons. The small team of commandos found Laden living in a plush mansion on a secured compound in the suburb of Islamabad and not in a cave along the rugged and lawless Pakistan-Afghanistan border region, where Pakistani officials said he was hiding. Senior US officials said the Obama Administration did not inform Pakistani authorities of the mission. Only a handful US officials were aware of the plan. The US official added that since 9/11 the US had made it clear to Pakistan that it would pursue Laden wherever he might be. “Pakistan has long understood that we are war with Al-Qaida. The US had a legal and moral obligation to act on the information it had,” he said. Senior US officials said they traced Laden by monitoring an Al-Qaida courier they believed was a trusted confidant of the terrorist leader. Over the years, the CIA gathered leads on bin Laden’s inner circle, including his personal couriers. Business News The Adani group’s Mundra Port and Special Economic Zone has announced acquisition of Abbot Point Port in Australia for Rs 9,000 crore. Apple has overtaken Google as the world’s most valuable brand, ending the four-year reign by the Internet search leader.

Microsoft has decided to buy Skype of $8.5 billion in cash, a move that will bolster the software major’s presence in the highly competitive Internet market. iGate has announced the completion of acquisition of Patni Computer Systems, one of the biggest acquisitions in the Indian IT industry. Glenmark Pharmaceuticals SA, a subsidiary of Glenmark Pharmaceuticals Limited, has out licensed its novel monoclonal antibody, GBR 500, to French drug-maker Sanofi for as much as $613 million. Under the agreement, Glenmark will receive an upfront payment of $50 million, which will be used to repay debt. The Union Cabinet has cleared the sale of loss-making Scooters India, the first strategic sale of a state-owned company in eight years. Bharti-Airtel has tied up with mobile software maker Comviva to manage its “valueadded” services across 16 African nations where it has presence. Italian luxury sports car-maker Ferrari has made its official debut in India with the opening of its first dealership in India in New Delhi. Star India and Zee group have decided to come together to form an alliance to distribute television content. Schneider Electric has decided to buy 74 per cent stake in Luminous Power Technologies for Rs 1,400 crore, a move that will help the French major strengthen its access to the retail market in India for electrical goods. DO YOU KNOW The operation by US Special forces that killed Osama bin Laden in Pakistan was codenamed “Operation Geronimo”. Thanks to the efforts by India, the world has recognised mental disorders as one of the non-communicable diseases (NCDs) that continue to be leading causes of premature deaths across the world. The recognition was granted at the first Global Ministerial Conference held at Moscow—in the run-up to the first UN Summit on NCDs to be held in September 2011. The move will go a long way in de-stigmatising mental disorders simply by bringing them on the global discussion agenda. India’s premier sports institution, the Netaji Subhash National Institute of Sports, Patiala, celebrates its golden jubilee in 2011 The Indian Naval Marine force, called the “Marcos”, is modelled on the US Navy Seals in the training pattern, working style and secrecy. US Navy Seals had conducted the operation against Osama bin Laden in Pakistan. A five-day UN Summit with 48 leaders of the world’s Least Developed Countries

attending was held in Istanbul, Turkey in May 2011, to discuss a new 10-year aid plan to help lift nations out of poverty. LDC countries are defined as those with per capita income of less than $745, and include 33 African countries, 14 from Asia, and Haiti. International Nurses Day is observed on May 12. India is ranked 143rd globally in Internet speed, with an average connectivity speed of 0.8 Mbps. South Korea tops the list with an average speed of 13 Mbps. In broadband connectivity, India ranks 129th. The average Internet speed in the world has been recorded at 1.9 Mbps. The French government has conferred its highest civilian award ‘Knight of the National Order of the Legion of Honour’ to Indian businessmen Rahul Bajaj, Chairman of Bajaj Auto, and Baba Kalyani, MD of Bharat Forge Ltd. “Vijayee Bhave” was the Indian Army’s first full-scale exercise to transform itself into a force aided by high-end technology that will ramp up the speed and accuracy of its striking capabilities. Indian Army had last conducted a transformation exercise in 2000, but with a limited scope. Hindustan Unilever Limited (HUL), India’s largest FMCG company, has announced the launch of India Water Body, an initiative aimed to drive water security for India by 2030 through public-private partnership (PPP). The India Water Body will be conducting a nation-wide study to assess the demand-supply gap for water in India. This initiative builds on the Sustainable Living Plan launched by Unilever in November 2010. The Health Ministry has approved a new scheme for easy access to sanitary napkins as part of the menstrual hygiene promotion programme for adolescent girls aged 10 to 19 years in villages. This scheme aims to spread hygiene awareness among girls. The girls will henceforth get a pack of six sanitary napkins under the National Rural Health Mission’s brand called “Freedays”. A pack of six napkins will cost Rs 6 (Re 1 per piece), and will be distributed by Accredited Social Health Activists (ASHAs). In the first phase, the scheme will cover 25 per cent of the target population—1.5 crore girls aged 10 to 19 years in 152 districts of 20 States. On May 20, 2011, Prime Minister Manmohan Singh dedicated the world-class, six million-tonnes per annum Bina Refinery to the nation. The refinery at Bina, Madhya Pradesh, has been set up by Bharat Oman Refineries Ltd, a joint venture promoted by Bharat Petroleum Corporation Ltd with 26 per cent equity participation by Oman Oil Company and about one per cent by the Madhya Pradesh government. India, along with 14 other nations, has been elected to the UN Human Rights Council, which is based in Geneva. Non-paper is an off-the-record or unofficial presentation of (government) policy. In diplomatic parlance, a “non-paper” is used when a government is conveying a point to other government/s or State actors while keeping nothing on record.

Bangalore has become the first city of India to be selected for Street View on Google Maps. Street View is a popular feature in Google Maps which allows users to explore and navigate neighbourhoods with the help of panoramic street level images. Singer Shaan has been signed by the Union Ministry of Health to be its anti-tobacco ambassador. The V.K. Shunglu committee was appointed to give recommendations for improving the financial position of power distribution utilities. Its major recommendation is to sack all non-performing power regulators. On June 4, 2011, India hosted its maiden pavilion at the Venice Biennale, the world’s oldest and most prestigious art fair held in Venice every two years. The Madhya Pradesh government, under Chief Minister Shivraj Singh Chauhan, has formed India’s first agriculture cabinet. It held its first meeting on June 18, 2011. From June 1, 2011, for the first time in India’s history, maternity treatment has been made “free of cost” in all government facilities, to ensure improvements in India’s institutional delivery rate and benefits at the level of maternal and infant health. Henceforth, every pregnant women entering a government facility for delivery will be entitled to free service—whether it is blood, consumables, drugs or diagnostics. India’s first sports gallery on Science of Sports has been set up at the Pushpa Gujral Science City in Kapurthala, Punjab. World No-Tobacco Day is observed on May 31.