CA January

January- Current Affairs 2014
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In a major achievement for the power sector, Southern Grid
synchronously connected with the National Power Grid

The Southern Grid has been synchronously connected to the rest of the Grid in the country. With this,
the mission of One Nation One Grid One Frequency has been successfully accomplished.
The southern grid connectivity was achieved on the evening of December 31, 2013 through
commissioning of Raichur-Solapur 765 kV single circuit transmission line by Power Grid
Corporation of India Limited, the Central Transmission Utility of the country, interconnecting the
Southern grid synchronously with the rest of the national power grid facilitating bulk transfer of
power across regional boundaries. This line of 208 circuit kilometers (ckm) and 765/400 kV
substations at Raichur and Sholapur has been commissioned five months ahead of its contractual
schedule i.e. 31st May, 2014 at a cost of approximately Rs.815 crores. With this interconnection,
Indian power system has entered into a new era and become one of the largest
operating synchronous grids in the world with about 232GW of installed power
generation capacity.

Synchronous integration of Southern Grid with rest of the national power Grid shall not only augment
the inter-regional power transfer capacity of Southern region but also relieve the
congestion being experienced in few transmission corridors. This will be a great boost for
further economic growth of the country. It is likely to take a few months before power flow over this
line is stabilized.

Indian Power System is operating through five Regional Grids and a Pan India synchronous
grid was envisaged for optimal utilization of the generation resources in the country.
Till now, four regional grids namely Northern, Eastern, Western and North-eastern regions (NEW
grid) were connected synchronously and Southern Region (SR) was connected to this NEW grid
through HVDC links. Synchronous interconnection of SR with NEW grid was envisaged through
high capacity 765 kV Raichur Sholapur lines, as an ultimate step towards establishment of an All
India Synchronous National Grid facilitating bulk transfer of power across regional boundaries.

GSLV-D5 launch places India in elite league

Indigenous cryogenic engine puts a 1,982-kg communication satellite in orbit
One of Indias most ambitious dreams became a reality on Sunday when its Geosynchronous
Satellite Launch Vehicle (GSLV-D5), powered by an indigenous cryogenic engine, effortlessly put
the 1,982-kg GSAT-14 communication satellite into a perfect orbit after 17 minutes of flight.

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The cryogenic engine built by the Indian Space Research Organisation (ISRO) fired for 12 of those 17
minutes. The precision of the cryogenic upper stage was such that it put the GSAT-14 into an orbit
with a perigee of 179 km, against the target of 180 km, and the apogee achieved was off by a mere 50
km for a target of 36,000 km.
The grand success caps 20 years of hard work by ISROs engineers, after being denied cryogenic
technology under pressure from the U.S., suffering a heartbreaking failure with an indigenous
cryogenic engine flight in April 2010 and having had to scrub its second attempt with an indigenous
cryogenic engine in August 2013.
The missions success means India now has the ability to put satellites weighing more
than two tonnes in orbit, joining the elite club of the U.S., Russia, France, Japan and
China who have mastered this perilous technology of using cryogenic propellants --
liquid oxygen at minus 183 degrees Celsius and liquid hydrogen at minus 253 degrees
Celsius.
The World Bank assisted Rural Drinking Water Supply and
Sanitation Project for Low Income States of Assam, Bihar,
Jharkhand and Uttar Pradesh
The Cabinet Committee on Economic Affairs has approved the implementation of the Rural Water
Supply and Sanitation Project for Low Income States (RWSSP-LIS) of Assam, Bihar,
Jharkhand and Uttar Pradesh with World Bank assistance over a period of six years
(from 2013-14 to 2019-20).
The project is expected to directly benefit a rural population of about 78 lakh persons including 44
lakh Scheduled Castes and more than 8 lakh Scheduled Tribes, with improved piped water supply
covering approximately 17,400 habitations in 2,150 Gram Panchayats (GPs) in the following 33
districts of the four States: a) Assam: b) Bihar c) Jharkhand: d) Uttar Pradesh
The key features of the project are:
(i) Strengthening and empowering of Panchayati Raj Institutions (PRIs) as well as ensuring
direct involvement of beneficiary communities in the scheme implementation.
(iii) The project will implement pilot programs such as 24/7 water supply provision in select areas,
and new technologies such as use of solar energy,
(iv) There shall be an intensive Capacity Building programme for all stakeholders down to
the GP level,

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(vi) The project will support the universal provision of household connections, meters for bulk water
supply, and promotion of household meters, wherever appropriate,
(vii) There will be a focus on monitoring and surveillance of drinking water quality,
(viii) Grievance redressal measures of a GP, District and State level will be captured by the
Monitoring and Evaluation (M&E) system proposed under the project,
The project will improve access and usage of piped drinking water supplied into individual homes.
Women and children will benefit significantly from project intervention as they currently bear most of
the burden of securing daily water supplies.
The Project will improve sanitation conditions in the targeted districts by adopting the convergence
approach with the Nirmal Bharat Abhiyan (NBA) and the National Rural Drinking Water
Programme (NRDWP) and saturate the project area in terms of access to water supply, household
and institutional toilets and solid and liquid waste management.
24 quality affected (arsenic/fluoride/iron) districts will be covered under the program to provide
potable water. The rural population will benefit from effective IEC and Behavioural Change
Communication (BCC) programs.
Background:
The 12th Five Year Plan for Rural Water Supply envisages achieving piped water supply coverage for
50 percent rural population in the country with 30 percent rural population having household tap
connections. This project is therefore conceptualized to provide a focused thrust in the four low
income states of Assam, Bihar, Jharkhand which have less than 10 percent piped water coverage) and
Uttar Pradesh (Eastern) which has high incidences of JE/AES cases.
Security for women in public road transport in the country
The Cabinet Committee on Economic Affairs has approved setting up of a unified system at the
national level (National Vehicle Security and Tracking System) and State level (City Command and
Control Centre) for Global Positioning System (GPS) tracking of the location of emergency buttons in
and video recording of incidents in public transport vehicles, in 32 cities of the country with a
population of one million or more according to the 2011 census.
The project will be implemented within a period of two years after allocation of funds to set up a
National Level Vehicle Security and Tracking System and City Command & Control
Centre with installation of GPS / CCTV / Panic buttons in public road transport.
The scheme for security for women in public road transport has been formulated with purpose of
improving safety and protection of women from violence by using information technology in the
following manner:

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I. Tracking of all public transport vehicles: This shall be done in accordance with Sections 72,
74, 75 and 76 of Central Motor Vehicle Act, 1988. Defaults will be reported and updated on the data
base of the vehicle.
II. Emergency button in all public transport vehicles: The button will generate an alarm in the
system. For vehicles which are also provided with facilities for video recording, the City Command and
Control Centre can receive pictures of actual incidents and raise an alarm with the nearest police and
transport patrol to reach the bus.
III. Video recording in public transport vehicles with large seating capacity: Incidents
recorded will be kept for seven days in the on-board unit and can be used as evidence and arrest of
accused in case of any incident.
Background:
The Justice JS Verma Committee constituted in December, 2012 to look into the possible
amendments in the criminal laws related to sexual violence against women made various
recommendations for public transport vehicles in its report
Kelkar panel for retaining production sharing model
for NELP X
Calls for moving to an open acreage regime, suggests setting up a National Data
Repository
Even as the Petroleum Ministry is bracing up to showcase nearly 56 new oil and gas blocks during the
forthcoming Petrotech 2014 conference under the new revenue sharing regime, the Vijay Kelkar
Committee has favoured retaining the production sharing contract (PSC) system for the oil and
gas exploration sector in the country.
The Ministry has proposed to put before national and international delegates the profile of these oil
and gas blocks likely to be auctioned under the New Exploration Licensing Policy (NELP)
round X. Although, the government has stated that it will issue the notice of bids under the revenue
sharing regime next month only after the Cabinet grants its approval, the Kelkar Committee report
is likely to further create confusion.
The committee, which submitted the first part of its report to Petroleum and Natural Gas Minister
Veerappa Moily early this week, dwells on issues such as shifting to an open acreage regime, setting up
a data repository, administering signed contracts and strengthening the Directorate-General of
Hydrocarbons (DGH). The second part of the report is likely to be submitted next month.
The Kelkar Committee, sources in the Ministry said, had favoured the production sharing
model for deep sea exploration because guarantees for the recovery of all sunk costs
were important to attract oil majors with proprietary technology. Under the present

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regime, oil companies can recover all costs of successful and unsuccessful wells
from sales of oil and gas before sharing profit with the government.
The Comptroller and Auditor General (CAG) had criticised the PSC regime on grounds
that it encouraged companies to increase capital expenditure and delay the
governments share. The Rangarajan panel had last year suggested moving to a revenue
sharing regime that required companies to state upfront the quantum of oil or gas they
would share with the government from the first day of production.
The Kelkar panel, it is learnt, favours the revenue sharing model for shallow and on-
land blocks that are less cost-intensive than deep sea exploration. It also reportedly calls for
moving to an open acreage regime where companies can pick exploration areas through
the year rather than wait for periodic auctions that offer areas identified by the
government. To facilitate this, the panel has called for setting up a National Data Repository
(NDR) that will preserve and promote the countrys natural resources data. It suggested
administering PSCs without any changes and strengthening the DGH for better administration.
NELP-X: A primer
All you need to know about the tenth round of India's New Exploration Licensing
Policy
What is NELP?
NELP or the New Exploration Licensing Policy is a scheme launched by the government of
India to accelerate the speed of hydrocarbon exploration and production in India.
NELP is currently in its 10th round. The first bids under NELP-I were invited in January 1999
for a total of 48 blocks and for the first time in India's hydrocarbon exploration history,
production sharing contracts were signed after offering blocks (onshore, shallow water offshore,
deep water offshore) for competitive bidding. Subsequently in the last 15 years, the
government has conducted nine NELP rounds with several PSUs and private
companies participating in the process. NELP allows up to 100% participation by
foreign companies and gives participating companies several incentives such as tax
holidays for a period post commercial production etc to lure bids.

What's been the progress?

So far, from round one to nine, 302 blocks have been given out for exploration. Of these, 128
have resulted in discoveries. An investment of $20 billion, has been committed on blocks given
out, although half of this investment has been on Reliance Industries KG-D6 block alone
according to reports. But the development and exploration in the fifth, sixth and seventh rounds
will be completed this year so the figure of investment is likely to go up further.


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Success or failure?

While there is no doubt that NELP has been successful in giving the oil and gas sector a thrust,
resulting in discoveries such as RIL's KG-D6 block and Cairn Indias Barmer fields, 15 years down
the line the fact that only six blocks have started production also suggests its implementation
failures. Nonetheless before the implementation of NELP, barely 11% of India's sedimentary
basins area was under exploration. That increased to 50% after NELP-VII according to
petroleum ministry data, and the target is to increase coverage to 80%.

The key challenges

The industrys interest in NELP rounds has been on the wane. While NELP-VIII,
where 70 blocks were on offer received only 36 bids, in NELP-IX most global explorers
stayed away from putting in bids leaving the round to be largely supported by PSUs. Investors
point out many concerns including faulty production sharing contracts, perception about
poor quality of reserves, flip flops in government regulation on gas prices and
marketing terms, lack of clarity on tax and cost implications as well as delays in
getting clearances which has resulted in global giants like BHP Billiton relinquishing nine
blocks late last year.

NELP-X: What's in it?

Prime Minister Manmohan Singh unveiled the 10th round of NELP on Sunday putting 46 to 60
blocks covering 166,053 sq km on bid. The final number will be decided depending on how
many inter-ministerial clearances are received. These include 17 on-land, 15 shallow water and
14 deep water blocks. On offer are also areas that the government had reclaimed from RIL and
Cairn India. The 10th round has the second highest blocks on offer and contrary to the
PSCs or production sharing contracts model followed till date, the government could
be following a revenue sharing model based on the Rangarajan Panel
recommendations, although clarity is yet to emerge on the same. This is likely to be the
last round of NELP as India could soon begin moving towards the Open Acerage regime
where bids can be submitted for blocks at any time following requisite procedures. A doubling of
gas prices announced ahead of NELP-X could recover bidder sentiment and unlock potential
interest in several other reserves that were considered uneconomical at current prices

India signs labour pact with Saudi Arabia
This will go a long way in protecting Indian workers"
India signed a labour cooperation agreement with Saudi Arabia on Thursday that will cover about a
quarter of the 28 lakh Indian expatriates working there and could be the stepping stone for a
more comprehensive pact covering all Indian workers in the Gulf Kingdom, said official sources.

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The Agreement on Labour Cooperation for Domestic Service Workers Recruitment,
inked by Overseas Indian Affairs Minister Vayalar Ravi and Saudi Arabian Labour Minister Adel bin
Mohammed Fakeih, will be monitored by a committee of senior officials.
This would go a long way in protecting the interests of Indian workers, said Mr. Ravi who also
thanked the Saudis for adopting a humanitarian approach while implementing the Nitaqat work
policy under which Riyadh had cracked down on expatriates who had no proper documentation.
While the law caused considerable apprehension in Kerala, in the end only 1.41 lakh Indians returned
home while a larger number found employment in Saudi Arabia during this period.
Over 70 lakh Indians work in the six Gulf countries and India has put much store on ensuring
reasonable work conditions and eliminating middlemen from the recruitment process. The agreement
with Saudi Arabia, though restricted only to domestic workers, could lead to more such pacts with
other major employers of Indian workers, officials hoped.
The agreement regulates contractual relations between employers and domestic
workers, ensures authenticity and implementation of the employment contract,
promises action against recruitment agencies violating laws and seeks to establish a
mechanism to provide 24 hours assistance to domestic workers. A standard
employment contract would set out minimum wages, working hours, paid holidays and
a dispute settlement mechanism.
The Saudi Minister will meet External Affairs Minister Salman Khurshid on Friday to discuss the
regional situation. Saudi Arabia has high stakes in the Syrian conflict and also has views different
from India on Iran. Riyadh caused consternation in the international community last year when it
refused to take up its two-year seat on the United Nations Security Council.
Cabinet clears new framework for TV ratings
The Union Cabinet on Thursday cleared a comprehensive regulatory framework proposed by the
Information & Broadcasting Ministry (I&B) for television rating agencies that includes
procedures for registration, eligibility norms, and limits on cross-holdings,
methodology for audience measurement, sale and use of ratings and a complaint
redress mechanism.
The issue has been under review for several years now with questions being asked about the accuracy
of Television Rating Points (TRPs) on the basis of which the visual media seeks advertisements and
their rates.
As per the new guidelines, which come into effect from the date of notification, all
rating agencies, including the existing ones, will have to obtain registration from the
I&B Ministry.

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No single company or legal entity can either directly, or through its
associates/interconnect undertakings, have substantial equity holding (10 per cent or
more of paid-up equity) in both rating agencies and
broadcasters/advertisers/advertising agencies.
Further, ratings have to be technology-neutral and should capture data across multiple
viewing platforms including cable television, direct-to-home television and terrestrial
television. The guidelines also stipulate sample size for rating. To begin with, six months
from the date of notification the minimum panel size should be 20,000. Thereafter, the
panel size has to increase by 10,000 annually till it reaches 50,000. Secrecy and privacy of the panel
homes has to be maintained.
Besides an effective complaint redress system with a toll free number, the rating
companies have to set up an internal audit mechanism to get its entire methodology
audited internally on a quarterly-basis and through an independent auditor annually.
And, all audit reports have to be put on the website of the rating agency with the
government and the TRAI reserving the right to audit their systems and procedures.
There are also punitive provisions, including cancellation of registration and forfeiture of bank
guarantees up to Rs. 1 crore, in the case of non-compliance.
Centre issues new guidelines for phone interception
The Union government has announced a fresh set of procedures for interception of
telephones. The Standard Operating Procedures (SOP) for Lawful Interception
and Monitoring of Telecom Service Providers (TSP), bearing No.5- 4/2011/S-II and
dated January 2, 2014, have been accessed by The Hindu. Significantly, this comes two
weeks after the Central government set up a commission to inquire into the Gujarat-based
snooping scandal, allegedly involving BJPs prime ministerial candidate Narendra Modi.
According to the norms, requests would include interception and monitoring under the Indian
Telegraph Act, 1885, for voice, SMS, GPRS, MMS, Video and VoIP calls.
Additionally, authorised security agencies can seek information under Section 92 of the
Criminal Procedure Code (CrPC) of call records (CDRs), home and roaming network,
CDR by tower location and by calling/called number, location details of target number
within home or roaming network, and so on.
One specification detailed in the section Validation of Interception Request is that only the
Chief Nodal Officer of a telecom company can provide interception if the order is issued
by the Secretary to the Government of India in the Home Ministry, in case of

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Government of India, or a Secretary to the State Government in charge of Home
Department, in case of State Government. In unavoidable circumstances, such orders can be
issued by an officer not below the rank of Joint Secretary to the GOI who has been fully
authorised by the Union Home Secretary or the State Home Secretary.
Interception is subject to eight checks before monitoring is allowed. These include
receiving the request in a sealed envelope, ensuring the delivery of interception by an officer not
below the rank of sub-inspector of police or equivalent.
Any inquiry process could, under the new SOP, check whether the request was in original and
addressed to the Nodal Officer and from which designated security agency it came from.
The SOP mandates that, any request received by telephone, SMS and fax, should not be
accepted under any circumstances. This would mean that the government concerned
would have to produce an original copy of its request that bears the Union/State
Secretarys order number with date, or an order and date by an officer of the rank of
Joint Secretary who has been duly authorised. Non-compliance with the provisions
can result in prosecution as per the law of the land.
The SOP document is 45 pages long and divided into 11 sections. The sections include the operational
structure, types of request, validation of interception request, legal intercept under number
portability, reconciliation and pruning processes, consequences, list of 10 law enforcement agencies
authorised to intercept and a set of 10 annexures relating to interception.
The SOP require that if a request is made on e-mail, unless a physical copy is not reached
to the telecom service provider within 48 hours the interception should be terminated
and an intimation provided to [the] concerned Home Secretary as a part of the
fortnightly report.
The SOP require that records pertaining to such interception, such as letter and envelope,
intercept form and internal interception request form should be destroyed within 2
months of discontinuance of interception of such messages.
If, however, it is a case of emergent request where Home Ministry Order for approval was not
conveyed to the telecom company, then the telecom company cannot destroy such records until the
Home Ministry order is conveyed or a list of such numbers is provided to the concerned Home
Secretary intimating this fact.
An inquiry could seek to find out whether an acknowledgement was sent within 2 hours of the receipt
of the [interception] request, to the requesting agency confirming that the request has been complied
with, from the mobile operator.

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The date and time of the actual provisioning of target in the TSP network should be mentioned, too.
The confusion in the case of the Gujarat-based snooping case, over whether the Union Home
Secretarys permission is required to intercept a subscriber roaming out of the State stands clarified.
According to the new SOP document, the interception order of the State Home Secretary in which the
subscriber is registered should be honoured by the State in which the subscriber is roaming. In effect,
no new order from a second State that may be involved, or from the Union Home Secretary, is needed.
However, evidence under the new SOP will need to be provided to the effect that a formal request was
made to the other State for interception while roaming.
New norms notified, natural gas prices set to double
The Petroleum and Natural Gas Ministry, on Friday, notified a new natural gas pricing guidelines
under the Rangarajan Committee formula that will lead to almost doubling of prices for
all domestically-produced gas, including conventional, shale, coal bed methane (CBM),
from the present price of $4.2 mbtu starting April . In a statement issued here this evening,
the Ministry said it had notified the Domestic Natural Gas Pricing Guidelines, 2014 that will
apply to all natural gas produced domestically, irrespective of the source, whether conventional, shale
or coal-bed methane (CBM) from April 1, 2014 produced in the public sector or by the private sector
firms.
The notification said gas from April will be priced at an average price of liquefied natural gas
(LNG) imports into India and benchmark global gas rates. This formula will be
applicable till March 31, 2019. The new rates will change every quarter, based on the 12-
month average of global rates and LNG import price with a lag of one quarter. ``The
guidelines shall also be applicable for natural gas produced by ONGC/OIL from their nominated
fields, the notification added.

Implications for RIL
Reliance Industries Limited (RIL) will get the benefit of the new gas price for its existing fields like
MA in the KG D6 block and new/upcoming ones like R-Series and satellite in the KG Basin block and
the ones in North East Coast block NEC-25. However, for the D1&D3 gas fields in KG-D6 block, it will
have to submit a bank guarantee to cover its liability if the charges of hoarding gas by deliberately
producing less during last three years are proved by independent observers or an arbitrator.
In respect of D1 and D3 gas discoveries of Block KG-DWN-98/3, these guidelines shall be applicable
subject to submission of bank guarantees in the manner to be notified separately, the notification
said.

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The bank guarantee will be encashed if it is proved that the company hoarded gas or deliberately
suppressed production at the main D1&D3 fields in the Eastern offshore KG-D6 block since 2010-11.
Experts estimate that price of gas from April will be around $8 to 8.4 mbtu during 2014-15 as against
the current rate of $4.2 per mbtu.
India, South Korea sign nine pacts
Work on the Posco steel plant in Odisha to start soon, assures India
India and South Korea signed nine pacts aimed at imparting forward momentum to their bilateral ties
that have seen intensification over the past four years. During a meeting between Prime Minister
Manmohan Singh and visiting South Korean President Park Geun-hye here on Thursday, India
assured that work on the multi-billion-dollar Posco steel plant in Odisha would start in the coming
weeks.
As Dr. Singh noted, the Agreement on the Protection of Classified Military Information
would boost defence engagement and take it beyond the purchase of South Korean defence equipment
to an area where Seoul is strong maintaining the sanctity of its land and maritime borders.
Another forward looking aspect was exploring the possibility of setting up a Korean
Industrial Park in India. South Korea is one of the few countries with a trade surplus with China
and Indias intention is to not only to provide a new avenue for its industry suffering from sluggish
growth in exports that account for half of the countrys GDP, but also get integrated in the global
supply chain. The two sides also announced the conclusion of negotiations for revision of the
existing Double Taxation Avoidance Convention.
Mining concessions
On Posco, the Prime Minister also held out the promise of grant of mining concessions which are at an
advanced stage of processing. I conveyed to President Park our hope that this project will confirm
that economic growth and environmental protection can go hand in hand, he observed.
However, there was no comfort to South Korea on its desire to set up nuclear power plants in India.
New Delhi has conveyed its intention to take up this proposal when it starts work on phase II of large
nuclear power plants.
In order to further security cooperation, it was agreed to hold annual interactions between the
national security structures of the two countries as also launch a Cyber Affairs Dialogue.
In Science and Technology, both countries will build on the experience of working on many practical
projects financed through a $10 million Joint Fund by inking a MoU on Joint Applied Research. They
also plan to step up collaboration in the peaceful uses of space science and technology.

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Dr. Singh conveyed to Ms. Park his Governments decision to extend a tourist visa on arrival facility
to South Korean nationals.
The two leaders also touched on regional issues, particularly developments in the Korean peninsula
and cooperation in the East Asia Summit processes. Ms. Park said the Korean peninsula had been
facing the threat of nuclear weapons and efforts must be made to ensure peace and stability in the
region.
Disposing of mercy plea a constitutional obligation:
court

"It is not a mere prerogative for the President and his decision will be subject to
judicial review"
Exercising of power under Article 72/161 of the Constitution to consider and dispose of mercy
petitions of convicts by the President or the Governor is a constitutional obligation and
not a mere prerogative and such a decision would be subject to judicial review, the
Supreme Court held on Tuesday.
A Bench of Chief Justice P. Sathasivam and Justices Ranjan Gogoi and Shivakirti Singh,
allowing writ petitions of 15 death row convicts, said: Considering the high status of office, the
constitutional framers did not stipulate any outer time limit for disposing of mercy petitions under the
said Articles, which means it should be decided within reasonable time. However, when the delay
caused in disposing of mercy petitions is seen to be unreasonable, unexplained and exorbitant, it is the
duty of this court to step in and consider this aspect. Right to seek mercy under Article 72/161 is a
constitutional right and [it is] not at the discretion or whims of the executive.
Writing the judgment, the Chief Justice said: Every constitutional duty must be fulfilled with due
care and diligence; otherwise, judicial interference is the command of the Constitution for
upholding its values. It is clear that after the completion of the judicial process, if the convict files a
mercy petition to the Governor/the President, it is incumbent on the authorities to dispose of the
same expeditiously. Though no time limit can be fixed for the Governor and the President, it is the
duty of the executive to expedite the matter at every stage
Laying down guidelines, the Bench deprecated the practice of keeping death row convicts in solitary
confinement and said such a practice, prior to rejection of the mercy petition by the President, was
unconstitutional.
It said: There is no provision in any of the prison manuals for providing legal aid, for preparing
appeals or mercy petitions or for accessing judicial remedies after the mercy petition has been
rejected. Since this court has held that Article 21 rights inhere in a convict till his last
breath, even after rejection of the mercy petition by the President, the convict can

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approach a writ court for commutation of the death sentence on the ground of
supervening events, if available, and challenge the rejection of the mercy petition and
legal aid should be provided to the convict at all stages. Accordingly, Superintendent of Jails
are directed to intimate the rejection of mercy petitions to the nearest Legal Aid Centre, apart from
intimating the convicts.
The Bench said: As and when any such mercy petition is received or communicated by the State
government after the rejection by the Governor, necessary materials such as police records, judgment
of the trial court, the High Court and the Supreme Court and all other connected documents should be
called at one stroke, fixing a time limit for the authorities to forward the same to the Ministry of Home
Affairs. Even after sending the necessary particulars, if there is no response from the office of the
President, it is the responsibility of the Ministry of Home Affairs to send periodical reminders and to
provide required materials for early decision.
The Bench pointed out that no prison manual has any provision for informing the prisoner or his
family of the rejection of the mercy petition by the Governor. Since the convict has a constitutional
right under Article 161 to make a mercy petition to the Governor, he is entitled to be informed in
writing of the decision on that mercy petition. The rejection of the mercy petition by the
Governor should forthwith be communicated to the convict and his family in writing or
through some other mode of communication available. Similarly all the States should
inform the prisoner and their family members of the rejection of the mercy petition by
the President.
Obligation
The Bench said that giving 14-day notice for execution allows the prisoner to prepare himself
mentally for execution, to make his peace with God, prepare his will and settle other earthly affairs. It
allows the prisoner to have a last and final meeting with his family members. Without sufficient notice
of the scheduled date of execution, the prisoners right to avail themselves of judicial remedies will be
thwarted and they will be prevented from having a last and final meeting with their families. It is the
obligation of the Superintendent of Jail to see that the family members of the convict receive the
message of communication of rejection of the mercy petition in time.
The Bench said there must be a regular mental health evaluation of prisoners as in some
cases, death-row prisoners lost their mental balance on account of prolonged anxiety and suffering
experienced on death row. There should, therefore, be regular mental health evaluation of all death
row convicts and appropriate medical care should be given to those in need. If the Superintendent is
of the opinion that the prisoner is not fit, he should forthwith stop the execution, and produce the
prisoner before a medical board for a comprehensive evaluation and shall forward the report of the
same to the State Government for further action.

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The Bench said: Most of the death row prisoners are extremely poor and do not have copies of their
court papers, judgments, etc. Since the availability of these documents is a pre-requisite for the
accessing of these rights, it is necessary that the copies of relevant documents should be furnished to
the prisoner within a week by the prison authorities to assist in making mercy petition and petitioning
the courts. While some prison manuals provide for a final meeting between a condemned prisoner and
his family immediately prior to execution, many manuals do not. Such a procedure is intrinsic to
humanity and justice, and should be followed by all prison authorities. It is therefore, necessary for
prison authorities to facilitate and allow a final meeting between the prisoner and his family and
friends prior to his execution.
The Bench said although none of the jail manuals provide for compulsory post mortem on death
convicts after the execution, we think in the light of the repeated arguments by the petitioners herein
asserting that there is dearth of experienced hangman in the country, the same must be made
obligatory. By making post mortem obligatory, the cause of the death of the convict can be found out,
which will reveal whether the person died as a result of the dislocation of the cervical vertebrate or by
strangulation which results on account of too long a drop.
Urjit panel suggests 4 % CPI inflation target

An expert committee appointed to examine the current monetary policy framework of the Reserve
Bank of India (RBI) has suggested that the apex bank should adopt the new CPI (consumer
price index) as the measure of the nominal anchor for policy communication. The expert
committee was headed by Urjit R. Patel, Deputy Governor of the Reserve Bank of India.
The committee felt that inflation should be the nominal anchor for the monetary policy
framework. The nominal anchor or the target for inflation should be set at 4 per cent with a
band of +/- 2 per cent around it.
It should be set by the RBI as its predominant objective of monetary policy in its policy statements,
the report said. The nominal anchor should be communicated without ambiguity, so as to ensure a
monetary policy regime shift away from the current approach to one that is centred around the
nominal anchor, it added. Subject to the establishment and achievement of the nominal anchor,
monetary policy conduct should be consistent with a sustainable growth trajectory and
financial stability, it added.
The nominal anchor should be defined in terms of headline CPI inflation, which closely reflects
the cost of living and influences inflation expectations relative to other available metrics, the
committee felt. This target should be set in the frame of a two-year horizon that is consistent with the
need to balance the output costs of disinflation against the speed of entrenchment of credibility in
policy commitment, the report said.

15

In view of the elevated level of current CPI inflation and hardened inflation expectations, supply
constraints and weak output performance, the committee said the transition path to the target
zone should be graduated to bringing down inflation from the current level of 10 per
cent to 8 percent over a period not exceeding the next 12 months and to 6 per cent over
a period not exceeding the next 24 month period before formally adopting the
recommended target of 4 per cent inflation with a band of +/- 2 per cent.
Since food and fuel account for more than 57 per cent of the CPI on which the direct influence of
monetary policy is limited, the commitment to the nominal anchor would need to be demonstrated by
timely monetary policy response to risks from second-round effects and inflation expectations in
response to shocks to food and fuel, the committee pointed out.
The committee asked the Central Government to ensure that the fiscal deficit as a ratio
to GDP (gross domestic product) is brought down to 3.0 per cent by 2016-17.
Administered setting of prices, wages and interest rates are significant impediments to monetary
policy transmission and achievement of the price stability objective, it said. As such, these required a
commitment from the government towards their elimination.
Monetary policy committee
The Patel panel felt that the monetary policy decision-making should be vested with a
monetary policy committee (MPC). It went on to recommend that the Governor of the
RBI should be the Chairman of the MPC. It felt that the Deputy Governor in-charge of monetary
policy could be the Vice-Chairman. The Executive Director in charge of monetary policy could be its
member. It could have two external members. The full-time external members would have full access
to information/analysis generated within the Reserve Bank. They (external directors) should not hold
any office of profit, or undertake any activity that is seen as amounting to conflict of interest with the
working of the MPC, it said. The term of office of the MPC could be three years, without
prospect of renewal. Each member of the MPC will have one vote with the outcome determined by
majority voting, which has to be exercised without abstaining. Minutes of the proceedings of the MPC
will be released with a lag of two weeks from the date of the meeting, the committee said.
It said all fixed income financial products should be treated on a par with bank deposits for the
purposes of taxation and TDS. With a sharp rise in the ratio of agricultural credit to
agricultural GDP, the need for subventions on interest rate for lending to certain
sectors would have to re-visited, it said.
In view of the cross country and Indian experience with global spillovers driving
episodes of large and volatile capital inflows as well as outflows, the committee felt that
a flexible setting of monetary policy by the RBI in the short-run was warranted. This
presages readiness to use range of instruments at its command, allowing, it said. With regard to

16

inflows that are excessive in relation to external financing requirements and the need for sterilised
intervention, the RBI should build a sterilisation reserve out of its existing and evolving portfolio of
GoI securities across the range of maturities, but accentuated towards a strike capability to rapidly
intervene at the short-end. The central bank should introduce a remunerated standing deposit facility,
which would effectively empower it with unlimited sterilisation capability. As a buffer against
outflows, the RBIs strategy should be to build an adequate level of foreign exchange reserves, it
added.
Towards a rules-based policy
A Reserve Bank-appointed committee headed by Deputy Governor Urgit Patel was
asked to revise and strengthen the monetary policy framework in India. In its core
recommendations it wants monetary policy to formally move towards using
headline CPI (Consumer Price Index) as its nominal anchor. Communicating the
nominal anchor without any ambiguity will be a key task. The objective is to ensure a
monetary policy regime shift away from the current approach, which has
multiple objectives, to one that is centred on the target CPI.
However, taking into account the current macroeconomic scenario, the committee has
conceded the need for flexibility in inflation-targeting to enable the central bank to deal with
other objectives in the short run. The ultimate goal is to contain CPI inflation within
a target band of 4 per cent plus or minus 2 per cent. A smooth two-year
transition is envisaged. From the current 10 per cent levels, CPI inflation is to be brought
down to 8 per cent in 12 months and to 6 per cent in 24 months. Monetary policy will
henceforth be conducted by a new Monetary Policy Committee which will have
the Governor as its head and three senior officers of the RBI as its members. In
addition, two outside experts will be nominated. All members will vote on the policy
at meetings every two months. The MPC will be accountable for any failure to achieve the
inflation target.
The committee has suggested crucial changes in the operating framework and instruments in
the conduct of monetary policy. Its report has generally been received well by banks and
financial markets. It enables policy formulation in a phased and transparent
manner using a real policy rate as reference. Over the medium term, the
recommendations will help develop a term money market, reduce fluctuations in market
liquidity and remove distortions in interest rates. Its unrelenting focus on inflation is
justified on several counts India has the highest rate of inflation among G-20 countries.
Inflation expectations are deeply entrenched and inflation at current levels is
inimical to medium-term growth and macroeconomic stability. Understandably,

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Finance Ministry officials are not happy with proposals that would strengthen the central
banks case for complete autonomy in matters of monetary policy. The fact that monetary
policy has very little influence over high food inflation that has pushed up the CPI, could
limit the efficacy of the new approach. All these do not detract from the fact that a shift to a
rules-based policy framework recommended will replace the purely discretionary approach
the RBI has followed so far, and is therefore to be welcomed.
New notes for old
The move by the Reserve Bank of India to withdraw from circulation all
currency notes issued prior to 2005 is interesting indeed. These notes will be legal
tender until March 31, and from April 1 holders will have to exchange them with banks for
new ones. Two months thereon that is, from July 1 those wanting to
exchange more than 10 such notes of Rs.500 or Rs.1,000 denomination will
have to provide proof of identity and residence if they go to a bank where they
do not regularly transact. In the interim period, it is not known if banks have to note
down details of those exchanging such notes and pass them on to relevant authorities. But
obviously they will have to do so if the objective of the RBI move is what it is widely believed
to be: to flush out unaccounted money and either bring it back into the system or strip it of
its value. Those who are hoarding currency notes issued before 2005 right now
will have to get it out into the open either to transact until March 31 or to
exchange with banks. It will not be easy to get large volumes of currency into the system
unnoticed in such a short period. Even if some of it does get exchanged, the RBI will not
mind that as it would have achieved the objective of getting such money into the legal
system.
The RBI move will also help eliminate counterfeit notes from the system. Notes
issued after 2005 have security features built into them that are absent in
counterfeit currency. As of December 31, 2004, the value of notes issued and in
circulation was Rs.3,43,658 crore as per RBI data. That is approximately the amount of
older currency that will need to be exchanged before the RBI closes the window. As of now it
has not specified any time limit for the exchange. To be sure, some part of that would have
been already replaced in the normal course by the RBI. But it will be safe to assume that a
good part is still in the system given that the value of notes in circulation has shot up to
Rs.11,40,621 crore as per latest available data (January 11, 2013). Sceptics can still point
out that not all black money is held as cash and not all unaccounted cash will be
in the form of notes issued prior to 2005. While that may be true, the fact
remains that the RBIs move will make life difficult for those who have hoarded

18

currency notes. The timing of the move, just ahead of general elections, is also interesting.
It is no secret that unaccounted money plays a major role in funding elections in this
country, and in recent times to even buy votes through cash inducements. The RBIs move
may or may not dent the finances of the politicians, but one thing is clear: it is a good step to
get at least a part of the stock of unaccounted cash back into the system.
Change in Policy Gives Fillip to MRO Industry
Maintenance, Repair and Overhaul (MRO) industry will now be considered as
part of the sub-sector of airport in the transport sector infrastructure for the
purpose of External Commercial Borrowings (ECBs) in accordance with a policy
change announced by RBI Circular No. 85 dated January 6, 2014. Consequently, the MRO
industry which is a nascent vertical with an annual turnover of about $800 million in the
aviation sector, will get a boost.
Global MRO market is estimated to be about $50 billion and market analysis suggests that
given the right environment, MRO industry in India has the potential to achieve an annual
growth rate of 10% for the next 10 years. Expanding fleet size of incumbent carriers and with
the entry of more players in the Indian aviation market, MRO industry is set to grow at a
faster rate than before. Policy change at this juncture to classify MRO as transport
infrastructure is quite timely, feel the industry representatives.
MRO industry is potentially capital intensive, involving substantial import of
equipment and related technical knowhow and services. Since MRO has a long
gestation period, access to foreign debt is vitally important and critical.
MRO industry will now be able to avail ECBs for long tenure and cheaper debts from
international markets. Access to cheaper sources of credit in a high interest rate environment
in domestic market will improve viability of the industry and pave the way for robust growth
of this high-tech industry in India
India Successfully Test Fires Agni-IV
AGNI-IV, the 4000 kms range Nuclear Capable Ballistic Missile was successfully launched
today at 1052 hrs from the Wheeler island off the coast of Odisha. This was the third
consecutively successful trial and the last one in the series of development launches. The
missile took off majestically, rose to a height of over 850 km, covered the intended range in

19

about 20 minutes, hit the target with two digit accuracy; meeting all mission objectives and
proving the capabilities of the missile. The AGNI-IV missile propelled by composite
solid fuel rocket motor technology was launched from its road mobile launcher
indigenously developed by DRDO. The long range Radars and Electro-Optical Tracking
Systems (EOTS) located all along the coast have tracked and monitored all the parameters
throughout the flight. Two ships located near the target point tracked the vehicle and
witnessed the final event.
The event is of greater significance since the system was tested in its deliverable
configuration with the active participation of Strategic Forces Command (SFC) personnel.
The missile is now ready for induction and its serial production will now begin. Todays
launch takes Indias level of deterrence and its preparedness and effectiveness to newer
heights. Seen together with recent momentous events: the second launch of Agni 5,
operational clearance of Tejas Light Combat Aircraft, achieving the criticality of nuclear
reactor of Indias first nuclear powered submarine Arihant, completion of development
phase of underwater launched missile BO5 and development of mark II version of Arjun
Main battle tank, Shri Chander said. He further stated that it also reflects the high maturity
level of Indias capabilities in design development and leading to production, contemporary
weapons and platforms for strengthening its deterrence and defence capabilities.
Agni-IV is equipped with state-of-the-art Avionics, 5th generation On Board Computer and
distributed architecture. It has the latest features to correct and guide itself for
inflight disturbances. The most accurate Ring Laser Gyro based Inertial
Navigation System (RINS) and supported by highly reliable redundant Micro
Navigation System (MINGS), ensured the vehicle reach the target within two digit
accuracy. The re-entry heat shield withstood temperatures in the range of 4000 degree
centigrade and made sure the avionics function normally with inside temperature remaining
less than 50 degree centigrade. Agni-I, II, III and Prithvi are already in the arsenal of armed
forces, giving them reach of over 3000 km, giving India an effective deterrence capability.
India, Japan agree to enhance security and defence
ties
The summit meeting between the Prime Ministers of India and Japan here on Saturday was a
continuation of the efforts to forge closer security, political and defence ties by putting in place new
building blocks and expanding the horizons of ongoing initiatives. However, the talks between
Manmohan Singh and Shinzo Abe also reflected the gap on the nuclear issue.

20

The visiting Japanese Prime Minister spoke on the importance of the Comprehensive Test Ban Treaty
(CTBT), which has not been put into force mainly due to Indias resistance. But Dr. Singh felt Indias
own commitment not to test any more nuclear bombs should suffice to convince Japan into signing a
bilateral civil nuclear deal.
The two countries signed eight pacts, of which half were connected with Japanese aid, thus indicating
that soft loans and outright grants will continue to remain an integral component of Tokyos
strategy of reaching out to New Delhi. Mr. Abe held out the promise of more aid, of which 70 per cent
will go for implementing phase-III of the Delhi Metro project.
On the defence side, the two countries decided to make joint naval exercises a permanent
feature and India, despite the experience of 2007, invited Japan to join the Indo-U.S Malabar series.
Seven years ago, the presence of Japan and Australia in the Malabar series fuelled protests at home
and from China leading to the dropping of the duo from subsequent chapters.
The Prime Ministers reviewed the progress made in selling hi-tech US-2 amphibious aircraft to
India, with government sources saying final plans envisaged a transfer of a substantial number of such
planes. This is the first time Japan is offering to sell a plane which has military uses as well.
With Mr. Abe setting up a National Security Council for the first time in Japans history, the Prime
Ministers decided to hold politico-security consultations on a regular basis with Indias National
Security Advisor, besides stepping up the pace of meetings between the Defence Ministers.
With a new government slated to take over here towards the middle of this year, two leaders decided
not to let the momentum drop by affirming the need for holding three important consultations in the
security arena after the change of guard dialogue between India, Japan and the U.S.,
defence policy dialogue and two-plus-two talks, a unique forum for India involving the Defence
and Foreign Secretaries of both countries.
Non-tariff barriers
Japan also lowered non-tariff barriers to import of shrimps that will help Indian fishermen.
Recognising the importance of people-to-people exchanges, the Prime Ministers hoped that the
Japanese Overseas Cooperation Volunteer scheme would be expanded to uncovered sectors
while visa regimes are being relaxed by both sides. Taking into account the potential of the Tamil
Nadu Investment Promotion Programme for Indias economic development, the Prime Ministers
looked at the possibility of extending similar programmes to other States.


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A strengthening relationship

Japanese Prime Minister Shinzo Abes visit to India as chief guest at the Republic Day
parade, and the clutch of agreements signed between the two countries during the 36 hours
he spent in the country, add more cement to a relationship that has been growing steadily
since 2005 and is valued by both sides. As Prime Minister Manmohan Singh said, there are
no two opinions in India on the importance of building ties with Japan; the country is at the
heart of New Delhis Look East Policy. The strategic component of the relationship has
increased dramatically over the last four years. Besides an annual summit, an
institutionalised multi-layered strategic dialogue at several levels between
the Defence Ministers, a two plus two among the Foreign Secretaries and
Defence Secretaries of both sides, one on maritime security, and a trilateral
between India, U.S. and Japan has kept up the momentum. In addition, as
announced significantly during Mr. Abes visit, the head of Japans recently set up National
Security Council and Indias National Security Adviser are to hold regular consultations. The
Indian Navy and the Japan Maritime Self-Defense Force (JMSDF), as the
countrys navy is called, held a joint maritime exercise off Chennai in December
2013. India is also in negotiations with Japan to buy its amphibious aircraft, Utility
Seaplane-2, used by the Japanese Navy. Even as both sides deepen their strategic
partnership, they should be clear that their shared wariness of China cannot be the basis for
healthy ties.
Indeed, Mr. Abes arrival in India along with a huge business delegation was a reminder that
there is a significant economic dimension to the relationship, even though this is its
underperforming side. Japan-India bilateral trade, which was $18.61 billion in
2012-13, is only around 1 per cent of Japans total foreign trade, while it is about 2.2
to 2.5 per cent of Indias total foreign trade, despite a comprehensive free trade agreement,
implemented in 2011. Tokyo has generously helped fund Indias infrastructure
development, including the Delhi-Mumbai Industrial Corridor, and is also
interested in a similar project in the Chennai-Bangalore belt. Discussions on a
civilian nuclear deal continue, despite opposition to nuclear energy within Japan, and in
particular to a deal with a country that is a Comprehensive Nuclear Test Ban Treaty holdout.
An agreement, if and when it comes through, will be the icing on the cake of India-Japan
ties.


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Reopen the Pathribal case

The Indian Army has not covered itself with glory by closing the cases against the officers
involved in the infamous Pathribal fake encounter in Jammu and Kashmir in which five
civilians were killed. Taking over the investigation of the case after an uproar over the 2000
incident, the Central Bureau of Investigation concluded that a Brigadier, a Lieutenant
Colonel, two Majors, and a Subedar of 7 Rashtriya Rifles had staged the encounter, picking
up civilians from the Anantnag area and killing them in cold blood. They lied to the police
that the five were foreign militants who had carried out the massacre of Sikhs in
Chattisinghpora a few days earlier. Backed by the Ministry of Defence and the Army top
brass, the officers named contested the CBI charge sheet, making the argument that under
the Armed Forces Special Powers Act, prior sanction was required to prosecute them. When
the legal battle reached its portals, the Supreme Court upheld the officers case. It also
directed the Army to either sanction the prosecution of the officers or court-martial them.
The Army was offered the same options back in 2001, but chose to prolong the legal battle.
This time, its back to the wall, it chose the latter option. The Army court has egregiously
concluded that the evidence recorded could not establish a prima facie case against any of
the accused. The finding flies in the face of the CBI investigation, but that was only to be
expected. The last hope the families of the dead had that justice might be done, lies buried.
It was only in December 2013 that the Army was patting itself on the back for ordering the
court martial of three officers involved in the Machchil fake encounter case, citing that as
evidence of its willingness to improve its human rights record. But the Pathribal case,
through all its legal twists and turns, ending in the exoneration of the accused officers, sends
exactly the opposite message. It is a textbook illustration of why the AFSPA is flawed, and
strengthens the case to do away with the provision that requires previous sanction from the
Central government for prosecution, if not to repeal the law itself. The Armys whitewash job
can only increase resentment against the military in Kashmir, and feed into the sense of
alienation. Chief Minister Omar Abdullah, who understands this well, has rightly said
Pathribal cant be closed or wished away. The leader of the National Conference, already
criticised as a Congress stooge, will have to face the political backlash from the
exoneration. If the Centre is serious about winning hearts and minds in Kashmir, it should
step in to undo the damage, and find a legal way to reopen the case and pave the way for a
civilian trial.
Related Article.

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Tombstones do not remain mute
The Armys clean chit to the accused in the Pathribal fake encounter case is an insult
to the sacrifices made by its men in Kashmir
Let us not go to Pathribal first. Let us go to Shopian instead, not very far from Pathribal. In May
2009, two women went to work in their orchard in this town in south Kashmir and did not return till
late in the night. In the ensuing search, the two were found dead by a rivulet. The separatist
machinery in the Kashmir Valley was quick to cash in on this tragedy. The deaths were immediately
dubbed as rape and murder, committed by who else? the Indian security forces. Jammu and
Kashmir Chief Minister Omar Abdullah had assumed office only a few months before and he was keen
to prove that he meant business. He issued orders in haste. Four police officers were suspended and
later jailed for almost two months.
It was a CBI investigation that brought out the truth after a few months. The investigation revealed
that the two women had drowned in the flooded rivulet while they were attempting to cross it. The
CBI filed a charge sheet against six doctors and others, including the brother of one of the deceased,
for fabricating evidence. One of the doctors, the CBI found, had fudged the vaginal swab samples to
prove that the women were raped.
The fake murder case had led to violent protests across Kashmir Valley. But, in the wake of the CBI
charge sheet the separatist propaganda rang hollow. Though once in a while, the Delhi lobby of
sympathisers still brings it up in TV discussions.
Around three years before its investigation in the Shopian incident, the CBI filed a charge sheet
against seven men of the Armys 7 Rashtriya Rifles unit, accusing them of killing in cold blood five
innocent villagers and passing them off as foreign militants. On the night of March 20, 2000, the eve
of American President Bill Clintons visit to India, suspected militants of Lashkar-e-Taiba had shot
dead 35 Sikhs in the village of Chittisinghpora, near Pathribal. Five days later, the Army said that it
had, in a joint operation with the police in Pathribal, eliminated five foreign militants responsible for
the Chittisinghpora massacre. Prior to this, five men had been picked up from villages around
Pathribal on the nights of March 23 and 24, 2000. The picking up of youth by various security
agencies was a routine practice those days in Kashmir. But the families of the five missing men got
suspicious after the Armys press conference on the encounter. Subsequent protests forced the State
government to orderan exhumation of the bodies of the foreign militants. It was done two weeks after
the killings. They turned out to be the bodies of the five missing men. Apart from being shot, the
bodies were badly charred and their body parts were chopped off.
In May 2006, the CBI completed its investigation and found the five Army men guilty of cold-
blooded murder. It sought trial for exemplary punishment of the accused. The CBI investigation
exonerated the police chief of the area based on a letter written by an Army major to the police, asking
them to file an FIR in an encounter they had conducted in Pathribal. According to standard operating

24

procedure, if it were a joint operation, there would have been no need to ask the police to file an FIR;
they would have done it on their own.
The Army challenged the CBI charge sheet in the court, claiming immunity under the Armed Forces
(Special Powers) Act. The CBI counsel argued that the accused could only seek immunity if there were
discharging duty, and in Pathribal it was clear that they were not. In 2012, the Supreme Court gave the
Army the option of trying the accused on its own or through a civil court. The Army chose the former
and on June 29, 2012, it announced that court martial proceedings would be initiated against the five
officers named in the CBI charge sheet.
But the family members of the victims had no faith in the Armys justice system, especially after it sent
summons to the father of one of the victims who had passed away six years before the fake
encounter.On January 23, the Army gave a clean chit to the accused, saying it could not establish a
prima-facie case against any of them. It declared the killing of the five innocent men as closed.
The people of Kashmir have heard multiple sermons over the last two decades on how they are a part
of India. From prime ministers to army chiefs, they have heard it from everyone: there will be zero
tolerance against human rights violations. But time and again their rights are violated. In the murky
underworld of counter-insurgency, nobody thinks much of a little blood spilled for a medal or a cash
reward. But tombstones do not remain mute. They may not come to a court room to testify. But the
judgment they pronounce leaves its scar on the nation. They leave stains on the righteousness of other
men; they are like razor cuts slashing through this righteousness.
Posthumously undermined
Think of a young man from a humble background who went to a school meant for children so poor
that they could not afford uniforms. Through sheer grit and determination he made it to the final
steps of the Chetwood Hall at the Indian Military Academy. He fought wars for India from Sri
Lanka to Sopore. His record was unmatchable. In his long stint in the Kashmir Valley, he and his
friends from the Armys elite 9 Para eliminated hundreds of terrorists, many of them foreign
mercenaries. During the Kargil war in 1999, he led his men in an assault on the Zulu ridge in the
Mashkoh Valley. When the then Army chief V.P. Malik, whose aide-de-camp he had served as earlier,
called him up and asked him why he went to lead the assault without acclimatisation, he laughed and
replied: Sir, I am from the hills, I dont need to be acclimatised. He was awarded the Vir Chakra for
his courage. A month later, on August 29, 1999, the officer led a group of five commandos, on a
search and destroy mission against a group of foreign terrorists in the Hafruda forests of Kupwara.
He jumped in front of their sentries, taking them by surprise and neutralised them. But in the ensuing
gunfight, he was shot in his stomach. In spite of this grave injury, he kept on directing his men and
refused to be evacuated. By the time he was, it was too late. Major Sudhir Kumar Walia was
posthumously awarded the countrys highest peacetime gallantry award, the Ashok Chakra. General
Malik and his wife flew in an army helicopter to Palampur in Himachal Pradesh to be with his family.

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The events of Pathribal are an insult to the memory of Major Walia and hundreds of other men like
him who fell in Kashmir. And no Operation Sadbhavna can rectify it. A certain set of retired Army
officers may rough it out in TV studios especially those who maintain a certain kind of moustache
and defend actions like the one in Pathribal.
The current Army chief, General Bikram Singh, has spilled his blood in Kashmir in a terrorist attack.
It is he who should, at this time, remember Howard Zinns lines: There is no flag large enough to
cover the shame of killing innocent people.
Indias illiterate population largest in the world, says
UNESCO report
Headway in improving access to education acknowledged
The latest Education For All Global Monitoring Report (GMR) released worldwide by the UNESCO
on Tuesday acknowledges the headway made by India in improving access to education but the
countrys population of illiterate adults has been identified as the drag factor.
India currently has the largest population of illiterate adults in the world with 287 million. This is 37
per cent of the global total. While Indias literacy rate rose from 48 per cent in 1991 to
63 per cent in 2006, population growth cancelled the gains so there was no change in
the number of illiterate adults, the report stated.
There are better tidings for India at the pre-primary and primary level. India features among the
countries likely to achieve the pre-primary enrolment target of at least 70 per cent by
2015 along with countries like Australia, Austria, Canada, Denmark, Norway, Sweden and United
Kingdom.
Similarly, India is in the top bracket of countries likely to achieve a primary enrolment target of at
least 95 per cent by 2015. This league includes Australia, Belgium, Finland, France, Germany, Japan,
Netherlands, New Zealand, Norway, Sweden, United Kingdom and United States.
However, the report questions the quality of education; placing India among the 21
countries facing an extensive learning crisis. Referring to the new analysis, the GMR said
less than half of the children were learning the basics in 21 of the 85 countries with full data available.
India features in this list along with 17 countries from sub-Saharan Africa, Mauritania, Morocco and
Pakistan.
Part of the learning crisis has been attributed to the ambitious curriculum drawn out
for children in India; including disadvantaged learners. Contrasting this to Vietnam where
the curriculum focuses on foundation skills and is closely matched to what children are able to learn,

26

especially disadvantaged learners the report pointed out that Indias curriculum outpaces what
pupils can realistically learn and achieve in the time given.
According to the report, India despite spending a considerable amount on education has reduced
its expenditure on education from 13 per cent of the entire government budget in 1999 to 10 per cent
in 2010
Uniform tax rate for foreign portfolio investors
The new system will especially be beneficial for QFIs
In a major boost for overseas entities, the government has said that foreign portfolio investors (FPIs)
will attract uniform tax rate across categories. FPIs bring together all the three investment categories
foreign institutional investors (FIIs), their sub-accounts and qualified foreign
investors (QFIs).
Besides, the tax rate for FPIs would be the same as that extended to FIIs. The new system would be
especially beneficial for QFIs, who were subjected to higher tax rate earlier. The Central Board of
Direct Taxes has notified that the new class of investors, FPIs, would be treated as FIIs under the
Income Tax Act, 1961.
With the notification, issued on January 22, FPIs would now be subject to the same tax treatment as is
applicable to FIIs under the current tax regime. The move clears the air over taxation regime for FPIs,
created with the aim of rationalising overseas investments in the domestic capital market.
Global consultancy EY said that QFIs would also become eligible to concessional tax rates in respect
of, inter-alia, capital gains earned on off-market transactions in securities (such as buyback and open
offers in equity shares). The Securities and Exchange Board of India notified the FPI norms on
January 7, replacing the regulations for FIIs.
Under the new norms, FPIs have been divided into three categories as per their risk profile and the
KYC (Know Your Client) requirements, and other registration procedures would be much simpler for
FPIs compared to the current practices.
Besides, the new class would be given a permanent registration, as against the current practice of
granting approvals for one year or five years to the overseas entities seeking to invest in Indian
markets.
Such registration would be permanent unless suspended or cancelled by SEBI or surrendered by the
FPI. Category I FPIs, classified as entities with lowest risk, would include foreign governments and
government related foreign investors. Category II would cover appropriately regulated broad based
funds, appropriately regulated entities, broad-based funds whose investment manager is

27

appropriately regulated, university funds and pension funds, among others. Those who are not eligible
to be in the first and second set of classifications would be considered under Category III.
Massive investments, emission cuts needed: U.N.
climate science panel

Emissions grew by 2.2% on average during 2000-10
The U.N. climate science panels yet to be released report will come up with a dire warning that the
world would have to reduce greenhouse gas emissions by 40-70% below 2010 levels by
2050 in order to have a fair chance to keep the rise in the global temperature below 2
degree Celsius.
This warning is one of the key summations in the Fifth Assessment report of Working Group
III of the Inter-governmental Panel on Climate Change (IPCC). The Hindu accessed the final
draft of the reports summary for policymakers, which works like a synopsis of the voluminous science
on how the world can reduce emissions. The summary is going to be an integral input into the climate
negotiations for the 2015 global deal. The final draft is to be negotiated once by the government
representatives before it is released to public in the later half of 2014.
In contrast to the drastic reduction required in emissions to keep temperatures below dangerous
levels, the report notes, emissions have grown by 2.2% on average during 2000-10 and the
recession has not abated the growth of emissions which clocked at 3% growth during
2010-11 and 1-2% during 2011-2012.
Tight control

28

The summary says that maintaining global temperature rise below 2 degree Celsius
would require the concentration of greenhouse gases between 430-480 parts per
million (ppm) of Carbon dioxide equivalent by the turn of century and keeping peak
concentration levels below 515 ppm. The concentration of emissions has already
breached the 400 ppm limits and is growing rapidly. With such tight control on emissions,
the chances of keeping the temperature within safe range would be between 66-100%.
The report notes that keeping the emission concentration levels under this limit would
require tripling or even quadrupling of the renewable and other clean energy
production by 2050 compared to 2010 levels.
Considering the low ambition the countries have shown to take action in the short run, the report
warns that delaying mitigation through 2030 will increase the challenges and reduce the options for
keeping emissions within the dangerous levels. The world might be forced to deploy yet-untested
technological changes which tamper with natural climatic processes at a large scale.
Consumption losses
The report acknowledges that such massive transformation of economies will come at great costs.
Even under what would be ideal conditions, the actions to keep emissions within check would lead to
global consumption losses by 1-4% in 2030, 2-6% in 2050 and 2-12% in 2100 compared to business as
usual emission rates.
The varied levels of growth of economies have made the authors of the report also put the question
before the countries of how the burden of reducing emissions would be shared. A majority of
accumulated GHG emissions so far have originated from the rich countries that have
relatively low population levels but the spurt of economic growth in emerging
economies is increasing current emissions. The ratio in per capita emissions between
developed and poor countries is 9 times for the median value. At the same time, these developing
countries such as India and China are building up massive new infrastructure where the potential to
reduce emissions exists at lower costs. To be able to do so, the report says, The financial transfers to
ameliorate this asymmetry could be in the order of hundred billions of USD per year before mid-
century to bring concentration in the range of 450 ppm of Carbon dioxide equivalent by 2100.
What it has to say about the current level of commitment by countries to fight climate change is not
new but the U.N. climate science panel officially admitting it promises to get these figures used in the
political negotiations. The IPCC says in its reports, The Cancun pledges are broadly consistent with
scenarios reaching 550-650 ppm Carbon dioxide equivalent ppm by 2100. The Cancun pledges refer
to the commitments countries made to cut the emissions between 2010 and 2020. The 550-650 ppm
emission concentration mark refers to the levels where the chance of preventing dangerous climate

29

change is less than 33%. The scientists panel notes, the pledges correspond to scenarios that
explicitly delay mitigation through 2020 or beyond relative to what would achieve lowest global cost.
In other words, the pledges are so weak that the countries are basically delaying taking the level of
action required to fight climate change.
Over a quarter of enrolments in rural India are
in private schools

Growing prevalence of private tuitions among elementary school students
Even as the Right to Education and the Sarva Shiksha Abhiyan have made access to elementary
education a reality for 99 per cent villages across the country, more than a quarter of enrolments in
rural India are in private schools.
As per the ninth Annual Status of Education Report (ASER), released here on Wednesday, 29 per cent
of enrolments in the six-to-14 age-group are in private schools. This is a 10 per cent increase in seven
years from 18.7 per cent in 2006 to 29 per cent in 2013.

30

While this reflects a shifting of public faith in government schools, the growing preference for private
schools is also indicative of a willingness to invest in a childs education by parents who very often are
themselves illiterate. The preference for private schools is not necessarily reflective of the quality of
public schooling. In Kerala, where the quality of public schools and teaching was found to be fairly
good, 68.6 per cent of all children in the elementary level were in private schools. Manipur recorded
the highest private school enrolment at 70 per cent.
Other States and Union Territories with a high percentage of elementary school children in private
institutions include Puducherry (54.3 per cent), Haryana (51.4 per cent), Uttar Pradesh (49 per cent),
Punjab (46.7 per cent), Jammu & Kashmir (45.5 per cent) and Meghalaya (45.3 per cent). As with
private schooling, there is also a growing prevalence of private tuitions among elementary school
students. The figure stands at 24.1 per cent.
Taking note of this trend, Planning Commission Deputy Chairman Montek Singh Ahluwalia said while
the State should keep putting money into school education, the time might have come for a re-think
on the more controversial issue of whether it should all go into government schools. As for the poor
learning outcomes of children in government schools, Mr. Ahluwalia sought to give some perspective
to the otherwise bleak picture that emerged out of the statistics. In his view, poor learning outcomes
would remain a problem for another decade or two since many of the children getting enrolled now is
first generation learners with no back-up at home.
While there was no significant improvement in childrens ability to read or deal with basic arithmetic,
the better percentage recorded in reading ability from 38.8 per cent in 2012 to 40.2 per cent in 2013
has been courtesy the better performance of private school children.
According to Madhav Chavan, president of Pratham Education Foundation which has been carrying
out this survey since 2005 the preference for private education is not just because of the clear failure
of government schools to deliver on basic achievements in learning, but also mirrors growing
urbanisation and increase in wealth and access to the external world and information. On
urbanisation, he said, it was not just migration but includes increasing urban influence on rural
population; thanks to television penetration.

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January- Current Affairs 2014

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