02.ga feb-2014

CSB, Ch-17, Ph: 044-24333346 GA/Feb2014’14/Page-1

CURRENT AFFAIRS FEBRUARY-2014

Reserve Bank of India • The RBI Working Paper Warns of Strains in Asset Quality of Banks – A Reserve Bank of India

(RBI) working paper ha warned banks of further strains on their asset quality. The working paper titled, Re-emerging Stress in the Asset Quality of Indian Banks: Macro-financial Linkages, stated if the current adverse macro-economic condition persisted, the system level gross Non-Performing Assets (NPA) ratio could rise to 4.4% by end March, 2014. − This ratio could go up to 7.6% under the severe risk scenari. In October, 2013, the International

Monetary Fund (IMF) scaled down its projection of world Gross Domestic Product (GDP) growth for 2013 to 2.9%.

− In its First Quarter Review of Monetary Policy 2013-14, the RBI has also revised its growth projection for 2013-14 downwards to 5.5%. While the credit growth in the recent period had ebbed, the RBI projected the non-food credit growth to be around 15% in 2013-14. Thus, notwithstanding the fact that credit growth is not going to be significantly robust, muted economic prospects and global headwinds could lead to further deterioration in asset quality.

− The position is not alarming at the current juncture, and some comfort is provided by the sound capital adequacy of banks, which ensure that the banking system remains resilient even in the unlikely contingency of having to absorb the entire existing stock of NPAs.

• The RBI Working Paper Warns of Strains in Asset Quality of Banks – A Reserve Bank of India (RBI) working paper has warned banks of further strains of their asset quality. The working paper titled, Re-emerging Stress in the Asset Quality of Indian Banks: Macro-financial Linkages, stated if the current adverse macro-economic condition persisted, the system level gross Non-Performing Assets (NPA) ratio could rise to 4.4% by end March, 2014. − This ratio could go up to 7.6% under the severe risk scenari. In October, 2013, the International

Monetary Fund (IMF) scaled down its projection of world Gross Domestic Product (GDP) growth for 2013 to 2.9%.

− In its First Quarter Review of Monetary Policy 2013-14, the RBI has also revised its growth projection for 2013-14 downwards to 5.5%. While the credit growth in the recent period had ebbed, the RBI projected the non-food credit growth to be around 15% in 2013-14. Thus, notwithstanding the fact that credit growth is not going to be significantly robust, muted economic prospects and global headwinds could lead to further deterioration in asset quality.

− The position is not alarming at the current juncture, and some comfort is provided by the sound capital adequacy of banks, which ensure that the banking system remains resilient even in the unlikely contingency of having to absorb the entire existing stock of NPAs.

• Non-Bank Entities to Set-up WLA – The Reserve Bank of India (RBI) has issued Certificate of Authorisation to four non-bank entities, including Tata Communications Payment Solutions and Muthoot Finance, to set-up White Label ATMs (WLAs) in the country on February 7, 2014. The other two non-bank entities to which the RBI has issued the certificate for setting up and operating the White Label ATMs are Prizm Payment Services and Vakrangee Limited. − White Label ATM – Most of the ATMs belong to banks, but the cash dispensing machines which

are owned and operated by non-banking companies are called White Label ATMs.

Other Banks • NABARD Sanctions over Rs.19100 crore under RIDF Scheme to States – National Bank for

Agriculture and Rural Development (NABARD) has sanctioned loans worth over Rs.19100 crore under Rural Infrastructure Development Fund (RIDF) to States for agriculture and allied activities on February 9, 2014. Started is created out commercial banks’ shortfall in lending to agriculture or priority sector.


Supreme Court • Supreme Court gave Adoption Rights to Muslims – The right to adopt a child (till now restricted

to Hindus, Buddhists and Jains) now extends to Muslims, Christians, Jews, Paris and all other communities. In a landmark judgement, the Supreme Court on February 20, 2014 ruled that any person can adopt a child under the Juvenile Justice (Care and Protection of Children) Act 2000 irrespective of religion he or she follows and even if the personal laws of the particular religion does not permit it.

Centre Government • National Mission on Libraries – President Pranab Mukherjee launched the Rs.400 crore National

Mission on Libraries (NML) in New Delhi on February 3, 2014. National Mission on Libraries is an initiative of Ministry of Culture to ensure sustained and long term focus on the development of Libraries. The mission has been set up in keeping with the recommendations made by the PM-backed National Knowledge Commission.

States • RAJASTHAN – Chandoli – India’s first Minority Cyber Village was inaugurated by the Minister for

Minority Affairs K. Rehman Khan on February 19, 2014 in Chandoli in Alwar district of Rajasthan. − Chandoli has been selected as the first village for the pilot project as it holds more than 80% of

minority population and also because the minorities of the Mewat region is still backward in education. The project will be carried in other areas after the success of the pilot project. The Cyber village project will provide computer education to people in the age group of 15 to 59.

• DELHI – President’s Rule Imposed – The Union Cabinet accepted the Delhi LG’s report on February 15, 2014 and decided to impose President’s rule in Delhi following the resignation of Chief Minister Arvind Kejriwal. Najeeb Jung had sought imposition of Central Rule but did not accept Kejriwal’s recommendation of dissolution of assembly and fresh elections.

• ASOM – 1st State to Ban Smokeless Tobacco – Asom became the first State in India to legally ban consumption of all forms of smokeless tobacco, including pan masala containing tobacco and nicotine, through an act which comes into effect on February 12, 2014.

• CHHATTISGARH - BUDGET 2014-15 The budget has made a provision of Rs.3900 crore for providing rice at Rs.1 per kg to 85% families of the state under Mukhyamantri Khaddyanna Suraksha Yojana towards implementation of the Chhattisgarh Food and Nutrition Security Act. The State government has offered several bonanzas in the education sector and announced free education to girl students of government colleges up to graduation. Interest rates have also been further reduced to one percent for education loans under the Mukhyamantri Uchcha Siksha Kirnn Anudan Yojana while giving interest-free education loans under the scheme for students of Naxal-affected districts.

• ODISHA – Odia became the 6th Classical Language of the country to get classical language status after the Union Cabinet conceded a long-pending demand for putting it in the same league as Sanskrit, Tamil, Telugu, Kannada and Malayalam on February 20, 2014.

• HARYANA – The 28th Surajkund International Crafts Mela Kicked-off – The Mela had began in Surajkund (Faridabad) on February 1, 2014. Goa was the ‘Theme State’ and Sri Lanka was the ‘Partner Country’ this year. The main purpose of the fair is to give a platform to artisans from remote areas to sell their products without the help of middlemen.

• MAHARASHTRA – New Law for Recovery of Bad Loans – Maharashtra government appointed a committee to bring a legislation that will improve the recovery of loans given as part of government schemes on January 31, 2014. The proposed legislation will create a mechanism for forceful recoveries of loans given under government schemes. It will not be applicable to agricultural and other loans.


What are Non-Performing Assets (NPA) or Bad Loans? Any asset, including a leased asset, becomes a non-performing when it ceases to generate income for the banks are called Non Performing Assets or Bad Loans.

As per RBI guidelines, the NPA is defined as under: Non performing asset (NPA) is a loan or an advance where: Interest and/or installment or

principal remain overdue for a period of more than 90 days in respect of a term loan. The account remains ‘out of order’ in respect of an Overdraft/Cash Credit (OD/CC). The bill remains overdue for a period of more than 90 days in the case of bills purchased and

discounted. The installment of principal or interest there on remains overdue for two crop seasons for short

duration crops. The installment of principal or interest there on remains overdue for one crop season for long

duration crops. The amount of liquidity facility remains outstanding for more than 90 days, in respect of a

securitisation transaction undertaken in terms of guidelines on securitisation dated February 1, 2006.

In respect of derivative transactions, the overdue receivables representing positive mark-to-market value of a derivative contract, if these remain unpaid for a period of 90 days from the specified due date for payment.

• GUJARAT – ‘Amul’ Launched its First Milk ATM – India’s dairy major ‘Amul’ has launched India’s first milk ATM which will sell milk through Any Time Milk vending machines. The 24×7 ATM has been installed at the Amul Dairy at Anand in Gujarat. The ATM machine can store 150 pouches of milk, each of 300 ml. The milk costs Rs.10 per pouch. The milk pouches are kept in the automatic dispensing machine which also keeps them chilled under 4°C.

Place in the News • Ennore Port (Chennai) – The Ennore Port in Chennai, one of the 12 major ports in the country, will

now be known as Kamarajar Port on February 20, 2014. K. Kamaraj was a freedom fighter and architect of modern Tamil Nadu.

• Kandahar (Afghanistan) – First national agriculture university, a major capacity-building project backed by India was inaugurated at Kandahar on February 15, 2014.

• London (UK) – Network Rail inaugurated the world’s largest solar-powered bridge at Blackfriars Bridge across the river Thames on January 28, 2014.

• Centenary celebrations of the Pamban railway bridge - Palk Strait (Indian Ocean) - Former President APJ Abdul Kalam inaugurated the centenary celebrations of the Pamban railway bridge – India’s first cantilever bridge, connecting the pilgrim-island of Rameswaram with the mainland. Official name of the bridge is Annai Indira Gandhi Bridge Also; Kalam unveiled a plaque and released a book Marvels of South Indian Railway.

• On 19th February, 2014, the Minister of Culture Chandresh Kumari Katoch inaugurated the Archaeological Survey of India’s (ASI) office building Puratatva Bhawan at New Delhi.

• Vizag Zoo – First Zoo to have a Conservation Breeding Centre – The Indira Gandhi Zoological Park (IGZP) or Vizag Zoo will be the first zoo in India to have a conservation breeding centre for the endangered wild dog or ‘Dhole’. The Central Zoo Authority selected IGZP to have a breeding centre for Dholes. Dhole – Also called the Asiatic Wild dog or Indian wild dog.

Personalities • Aarti Devi, a 28-year-old MBA graduate from Sikkim Manipal University who quit her job as an

investment banker at IDBI Bank in Berhampur, Odisha, to become a sarpanch in a backward panchayat of Ganjam district in 2012, will represent India in the International Visitors Leadership Programme on State and Local governments in the US next month.


• Kautilya Pandit, the 6yr old child prodigy from Karnal in Haryana, has been conferred the title of Bal Manishi by the Kashi Vidvat Parishad on February 11, 2014. He is popularly known as ‘Google Boy’.

• Li Na of China was ranked World Number 2 in the latest Women’s Tennis Association (WTA) singles ranking released on February 17, 2014.

• Kumar Sangakkara – Sri Lanka Cricketer Kumar Sangakkara, became the second person in the history of Cricket to score a triple century and a century in the same test match on February 7, 2014.

• MS Dhoni became the first captain to be involved in four tied One Day International matches on January 24, 2014. Indian cricket team captain achieved this feat in Auckland, while playing third ODI match against New Zealand.

• PepsiCo CEO Indra Nooyi (3) and ICICI Bank Managing Director Chanda Kochchar (18) are among Fortune magazine’s list of 50 most powerful women in business. General Motors CEO Mary Barra, the first woman to run a global automaker.

• Facebook founder and CEO Mark Zuckerberg became the youngest and the most generous philanthropist of America in 2013 revealed by the Chronicle of Philanthropy.

• Yuvraj Singh, the Indian Cricketer cancer foundation named YouWeCan joined its hand with an NGO Navbharat Sewa Samiti on February 10, 2014 to roll out a campaign named Cancer Mukt Purvi Dilli.

Defence and National Security • Lombok Strait (Indian Ocean) – The Chinese Navy has conducted rare exercise in the Lombok

Strait in the Indian Ocean near Indonesia, with the drills seen by analysts as underlining China’s expanding capabilities in carrying out operations in waters far beyond its borders.

• 8th Defexpo India, a biennial exhibition on Land, Naval, Internal Security and Defence System was organized by Ministry of Defence, Department of Defence Production, Defence Exhibition Organisation, from February 6 to 9, 2014 at Pragati Maidan, New Delhi. The exposition would be showcasing India’s capabilities in Land, Naval and Security Systems as well as its emergence as an attractive destination for investment in Defence Sector by providing a platform for forging alliances and joint ventures in the defence industry.

• Akash Missile Successfully Test-fired – India test-fired the indigenously developed surface-to-air Akash missile from the Integrated Test Range launch complex at Chandipur near Balasore in Odisha on February 21, 2014. The missile targeted a floating object supported by Pilot Less Target Aircraft (PTA) ‘Lakshya’.

• Asia’s First SBTF Commissioned into Indian Navy – India has joined the elite group of nations when the Shore Based Test Facility (SBTF) was commissioned into the Indian Navy at INS-Hansa at Panaji, Goa on February 1, 2014. This is the third such facility in the world, after the United States and Ukraine. The SBTF, which was commissioned recently, is primarily used for flight testing of naval aircraft that operate from aircraft carriers.

• First Naval War Games in the Mediterranean – Russia and China have begun their first naval war games in the Mediterranean in what is seen as preparation for joint military operations in the world ocean far away from their territorial waters on January 25, 2014. The joint naval drill involved Russia’s heavy nuclear missile cruiser Peter the Great and Chinese frigate Yancheng.

Committees/Commissions • Mudgal Committee Report on Matching Fixing – The Justice Mukul Mudgal Committee,

investigating spot-fixing and betting in the Indian Premier League (IPL), has reported that allegations of betting and passing of information against Gurunath Meiyappan stand proved on February 11, 2014. This puts to risk the future of the IPL franchise Chennai Super Kings. According to report, Meiyappan was the face of Chennai Super Kings while rejecting N. Srinivasan’s contention that he was merely a cricket enthusiast.


− The report highlighted that there is a conflict of interest on Srinivasan holding the post of BCCI chief and ownership of IPL franchise, and that it is a serious issues and needs to be considered by court. The report also stated that allegations of fixing require further investigation.

• India to have Equal Opportunity Commission - A high-level Indian delegation led by Minister for Minority Affairs K. Rahman Khan met senior British Ministers and officials to formulate the framework of an equal opportunity commission for India. − The formation of a commission for India’s minorities, which constitute about, 18.4% of the

population, is one of the recommendations of the Rajinder Sachchar Committee. A Bill towards the constitution of the Equal Opportunity Commission of India will be tabled in the next Parliament session.

• 7th Pay Commission Approved – Prime Minister Manmohan Singh has approved composition of the 7th Pay Commission, which will revise the salaries of over 50 lakh central government employees on February 4, 2014. Former Supreme Court Justice Ashok Kumar Mathur has been appointed as chairman of the Commission, will Oil Secretary Vivek Rae as full time Member. Earlier in September, 2013, the Prime Minister had approved setting up of the 7th Pay Commission.

• Committee to Review Safety Standards of Tourist Vessels – Lt. Gen. AK Singh, the Lieutenant Governor of Andaman and Nicobar Islands constituted a high level committee on January 27, 2014. The Committee will be headed by the Commissioner-cum-Secretary of Shipping. The committee will review the safety standards of all tourist vessels that are being operated at different tourist spots of the island. The Committee has been formed in the wake of accident in which a boat named Aqua Marine loaded with 43 tourists on board overturned between the Ross Islands and North Bay near Port Blair in Andaman on January 26, 2014.

• Total Autonomy for Prasar Bharati – A multi-member committee, appointed by the government, has recommended amendment to the Prasar Bharati Act of 1990 to give ‘effective’ freedom to the public broadcaster ‘Prasar Bharati’ with administrative and financial powers. The committee, headed by Sam Pitroda, has submitted its report with a set of twenty-six recommendations on issues such as governance, funding, content, technology, social media and global outreach.

Schemes/Initiatives • 40 Lakh Families to get Samajwadi Pension – The Uttar Pradesh Cabinet approved the ‘Samajwadi

Pension’ scheme, aimed at giving direct benefits to 40 lakh families in the state on January 28, 2014. The Cabinet meeting, presided over by Chief Minister Akhilesh Yadav, also cleared a proposal for assimilation of 1.7 lakh Shiksha Mitra (teachers hired on contractual basis) into service. − The Cabinet also decided to modernise police stations and control room in Gautam Buddha

Nagar, and the project will be funded by New Okhla Industrial Development Authority (NOIDA). The excise policy of the state has also been passed in which the revenue realisation would be 21.4% more than the current fiscal.

• MSNP and NRP Launched – Women and Child Development Minister Krishna Tirath launched a Multi Sectoral Nutrition Programme (MSNP) and National Resource Platform (NRP) on the occasion of National Girl Child Day i.e., on January 24, 2014. National Girl Child Day commemorates the day when Indira Gandhi was sworn-in as the first woman Prime Minister of the country on January 24, 1966.

• Finance Ministry approved Rs.1000 Minimum Monthly Pension Plan – The Finance Ministry has approved a proposal for providing a minimum monthly pension of Rs.1000 to workers in the organised sector, a move which would benefit 27 lakh pensioners immediately on January 23, 2014. The ministry has also approved a proposal for raising the basic wage ceiling under the Employees Provident Fund Scheme to Rs.15000 from existing Rs.6500 per month.

• Speed Post launched a special service for booking and delivery of Notices/Summons of the High Court of Delhi with ‘Proof of Delivery’ (PoD) facility. The ‘PoD’ in its return transmission will also be booked under Speed Post Service.


• On 3rd February, 2014, Prime Minister Dr. Manmohan Singh inaugurated 101th Indian Science Congress in Jammu.

• Gulam Nabi Azad, the Union Minister for Health and Family Welfare inaugurated AIIMS at Rishikesh, Uttarakhand. AIIMS, Rishikesh is a project under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY).

• Approval of National Mission for a Green India Scheme – The Cabinet Committee on Economic Affairs (CCEA) has approved a proposal of the Ministry of Environment and Forests for a National Mission for a Green India (GIM) as a centrally sponsored scheme on February 20, 2014. Of the total expenditure of Rs.13000 crore envisaged in the 12th Plan, the plan outlay is Rs.2000 crore. − The objective of the Mission during 12th Plan period includes increased forest/tree cover and

improved quality of forest cover in 2 to 8 million hectares, along with improved ecosystem services including biodiversity, hydrological services, increased forest-based livelihood income of households, living in and around the forests, and enhanced annual carbon dioxide sequestration.

Summit/Conference • 24th Meeting of the National Steel Consumers’ Council – The Union Minister of Steel, Beni Prasad

Verma chaired the 24th meeting of the National Steel Consumers’ Council of Ministry of Steel in Lucknow on February 3, 2014. The members of the council raised various issues related to expansion of dealership networks, securitisation of iron ore, and supply of steel to various segments of the market. India is today the 4th largest steel producer in the world.

Agreement/Deal/Sign • ONGC Signed Pact with ‘Mitsui’ – Oil and Natural Gas Corporation (ONGC) and Japanese

conglomerate Mitsui & Corporation have signed a Memorandum of Understandings (MoU) for cooperation in exploration and production for conventional and unconventional petroleum and natural gas opportunities in India and third countries on January 28, 2014.

• Six PSUs Sign-up for World’s Largest Solar Plant – 6 state-owned companies have come together to set-up the world’s largest single-location 4000 MW ultra mega solar power project in Rajasthan on January 29, 2014. The joint venture company will have equity participation of 26% from Bharat Heavy Electricals Limited (BHEL), 23% from Solar Energy Corporation of India (SECI), 16% from Sambhar Salt Limited (SSL), 16% from Power Grid, 16% from Satluj Jal Vidyut Nigam (SJVNL) and 3% from Rajasthan Electronics & Instruments Limited (REIL). The Memorandum of Understandings (MoU) signed need to get the approval of the Cabinet.

• Bharat Electronics Limited Ties-up with Textron – The agreement between Bharat Electronics Limited (BEL) and Textron was signed during Defexpo 2014 on February 7, 2014 the eighth biennial Land, Naval and Internal Homeland Security Systems Exhibition that began at Pragati Maidan. The Pact has been signed for enhancing border security, surveillance and enhancing protection of critical infrastructure. It is seen as a first step for supplying the Textron Systems Micro Observer Unattended Ground Sensor (UGS) system to Indian security agencies.

Textron is an American industrial conglomerate. Textron includes Bell Helicopter, Cessna Aircraft, and other components.

• India – Argentina India and Argentina has agreed to enhance cooperation in the field of renewable energy on February 19, 2014. In a meeting with a delegation led by Dr. Antonio Bonfatti, Governor of Santaa Fe.Rosario Province, Argentina and Dr. Farooq Abdullah, Union Minister for New and Renewable Energy. Collaboration in sectors of bio-diesel and possibilities of future commerce and business in bio-fuel were also discussed.


• India – Kyrgyz Republic Two Agreements Signed – India signed two agreements with Kyrgyz Republic during the visit of Abdyldaev Erlan Bekeshovich, Foreign Minister of Kyrgyz to India on February 14, 2014. The two sides exchanged documents to facilitate mutual legal assistance in criminal mattes and to simplify visa regime for diplomatic and official passport holders. The two agreements are as follows: Signing of Protocol on Mutual Legal Assistance Treaty in Criminal Matters-Exchange of

Instrument of Ratification. Exchange of Notification on the completion of internal procedures from both the sides for

implementation of Visa Free Agreement for diplomatic and official passport holders.

• India – Bahrain India and Bahrain signed three agreements to expand cooperation in key areas, including trade and business. The agreements were signed in the presence of Prime Minister Manmohan Singh and King Hamad bin Isa Al Khalifa. Both sides signed three agreements in the fields of economic engagement and sports and to ensure cooperation between the Foreign Service Institute of the External Affairs Ministry and the Diplomatic Institute of the Bahrain Ministry of Foreign Affairs.

• India – Fiji Double Taxation Avoidance Agreement Signed - India and Fiji have signed a Double Taxation Avoidance Agreement (DTAA) that provides for among other things, exchange of banking information for tax administration purpose on January 30, 2014.

Double Taxation Avoidance Agreement (DTAA) also referred as Tax Treaty is a bilateral economic agreement between two nations that aims to avoid or eliminate double taxation of the same income in two countries.

• India – The Netherlands Cooperation in Renewable Energy Sector – India and the Netherlands signed a Memorandum of Understandings (MoU) for cooperation in renewable energy on February 11, 2014. Under this agreement, an Indo-Dutch Joint Working Group will be set-up and the exchange of technical and institutional knowledge on clean energy will be facilitated. Both India and the Netherlands have ambitious sustainable energy targets and face similar challenges in realising clean energy options in densely populated areas.

• India – Nepal Bilateral Transit Treaty Amended – Nepal and India have amended a bilateral transit treaty to facilitate the export of goods from a third country through India on February 1, 2014. Earlier, only goods of Nepalese origin were allowed to be exported through India to third countries.

• India – Poland Collaboration in Culture Sector – India and Poland have agreed for deepening collaboration in culture sector covering diverse activities including conservation, museums, archaeology, archives, science museums, and performing arts in a meeting between Secretary Culture, Ravindra Singh and the visiting Deputy Minister of Culture and National Heritage of Poland Prof. Malgorzata Omilanowska on February 19, 2014.

• Contract Signed for Exploring Oil and Gas – ONGC Videsh Limited (OVL) and its partner Oil India Limited (OIL) have signed contracts to explore for oil and gas in tow areas in Bangladeshi waters on February 17, 2014. An equal joint venture of OVL, the overseas arm of state-owned Oil and Natural Gas Corporation (ONGC), and OIL signed production sharing contracts (PSC) for shallow water blocks SS-04 and SS-09 in Bangladesh. The consortium was officially notified as the winner of two shallow water blocks (2) (2)-09 and SS-04 on August 20, 2013.

• NRLM Pact with Digital Green – A Memorandum of Understandings (MoU) was signed between the National Rural Livelihoods Mission (NRLM) and Digital Green (a Microsoft Research Project) in New Delhi on January 28, 2014. The NRLM was the biggest programme for women empowerment.


− Digital Green aim to exchange livelihood practices among rural communities using locally produced videos and mediated dissemination.

National Rural Livelihood Mission (NRLM) is a poverty alleviation project implemented by Ministry of Rural Development, government of India. This scheme is focused on promoting self-employment and organization of rural poor.

• Union Government and GAVI Signed a Contribution Agreement – A Contribution Agreement was signed between the government of India and Global Alliance for Vaccination and Immunisationi (GAVI) on January 30, 2014. As per the terms of agreement, the government of India has decided to contribute to GAVI at $1 million per year for the four years from 2013-14 to 2016-17. India supports multi-lateral institutions such as the GFATM and now GAVI in the health sector.

Bills • Odisha – Lokayukta Bill Passed – State Assembly passed the Odisha Lokayukta Bill, 2014, with

provision of keeping Chief Minister, ex-Chief Ministers, other ministers and public servants under the purview of a six-member anti-corruption panel on February 14, 2014. The Bill has provisions similar to that of the Central Act which was passed in Parliament in December, 2013. − With the passage of the Bill, Odisha became the first State to enact the law after the Central Act

was passed in Parliament. As per the provisions of the Bill, the incumbent as well as former chief ministers, ministers, MLAs, government officers, heads of panchayats and municipalities and trusts receiving government grants will come under the purview of the Lokayukta who is empowered to probe into graft charges.

• Street Vendors Bill Passed – The Rajya Sabha passed the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Bill, 2014. The Bill provides for protection of livelihoods rights, social security of Street vendors, regulation of urban Street vending in the country and for matters connected therewith or incidental thereto. The Lok Sabha had passed the Bill on September 6, 2013. Main features: The provisions of the Bill are aimed at creating a conductive atmosphere where street vendors,

are able to carry out their business in a fair and transparent manner, without the fear of harassment and eviction.

The Bill provides for constitution of a Town Vending Authority in each Local Authority, which is the fulcrum of the Bill, for implementing the provisions of the Bill.

In order to ensure participatory decision making for aspects relating to Street vending activities like determination of natural market, identification of vending zones, preparation of Street vending plan, survey of Street vendors etc. the TVC is required to have representation of officials and non-officials and Street vendors, including women vendors with due representation from SCs, STs, OBCs, Minorities and persons with disabilities. It has been provided that 40% members of the TVC will be from amongst Street vendors to be selected through election, of which one-third shall be women.

To avoid arbitrariness of authorities, the Bill provides for a survey of all existing street vendors, and subsequent survey at-least once in every five years, and issue of certificate of vending to all the Street vendors identified in the survey, with preference to SCs, STs, OBCs, women, persons with disabilities, minorities etc.

All existing Street vendors, identified in the survey, will be accommodated in the vending zones subject to a norm conforming to 2.5% of the population of the ward or zone or town or city.

Where the numbers of street vendors identified are more than the holding capacity of the vending zone, the Town Vending Committee (TVC) is required to carry out a draw of lots for issuing the certificate of vending for that vending zone and the remaining persons will be accommodated in any adjoining vending zone to avoid relocation.

Those street vendors who have been issued a certificate of vending/license etc. before the commencement of this Act, they will be deemed to be a street vendor for that category and for the period for which he/she has been issued such certificate of vending/license.


It has been provided that no street vendor will be evicted until the survey has been completed and certificate of vending issued to the street vendors.

It has also been provided that in case a street vendor, to whom a certificate of vending is issued, dies or suffers from any permanent disability or is ill, one of his family member i.e., spouse or dependent child can vend in his place, till the validity of the certificate of vending.

Section-29 of the Bill provides for protection of street vendors from harassment by police and other authorities and provides for an overriding clause to ensure they carry on their business without the fear of harassment by the authorities under any other law.

The Bill specifically provides that the Rules under the Bill have to be notified within one year of its commencement, and Scheme has to be notified within six months of its commencement to prevent delay in implementation.

• Report on the Civil Aviation Authority of India Bill, 2013 – A Parliamentary Panel on Transport, Tourism and Culture headed by Sitaram Yechury on February 6, 2014 submitted its report on the Civil Aviation Authority (CAA) of India Bill, 2013 to Parliament. The parliamentary panel has asked the government to come out with a comprehensive Bill after revisiting the Aircraft Act 1934.

• On 3rd February, 2014, the Delhi Cabinet cleared the Delhi Lokpal Bill, 2014 that aims to bring all public servants from the Chief Minister to all Group-D employees – under its ambit with no safeguards or ‘special privileges’ extended even to the Chief Minister’s Office.

Economy • New Automatic Info Exchange Framework – As India and 41 countries adopted a new global

standard for automatic exchange of information on offshore tax evasion on February 13, 2014, Swiss banks commented that framework is very complex and involves high costs. The reaction from Swiss banks, through their apex body Swiss Bankers Association (SBA), followed a “single global standard for automatic information exchange” developed by Paris-based Organisation of Economic Cooperation and Development (OECD) after consultation with G-20 countries.

• Institutional Trading Platform on BSE-SME Launched – Country’s premier stock exchange Bombay Stock Exchange (BSE) Limited launched institutional trading platform in the BSE-SME segment to facilitate the start-up companies and SMEs to list without IPO on February 11, 2014. The launch of BSE-SME ITP is consequent to SEBI’s provision in Issue of Capital and Disclosure Requirements (ICDR) guidelines allowing SMEs to list on the exchange without bringing in Initial Public Offer (IPO). Eligibility Any company with a paid up capital not exceeding Rs.25 crore in any of the previous financial

years and has at least one full year’s audited financial statements for the immediately preceding financial year at the time of making listing application is eligible to get listed at the BSE-SME ITP.

Any company that has not completed a period of more than 10 years after incorporation and its revenues have not exceeded Rs.100 crore in any of the previous financial years is also one of the eligibility criterions.

Companies/Industry • ‘Facebook’ bought ‘WhatsApp’ – Social media giant ‘Facebook’ has announced that it has

purchased popular mobile messaging company ‘WhatsApp’ for a whopping $ 19 billion. It is the largest acquisition by the Mark Zuckerberg-led firm so far that will give it a stronghold in the market for messaging. WhatsApp has more than 450 million monthly users.

Agriculture/Production • World Congress on Agroforestry 2014 – The World Congress on Agroforestry 2014 was held on

February 10-14, 2014 in Delhi for the first time under the theme Trees for Life. It was organised by the World Agroforestry Centre, the Indian Council of Agricultural Research (ICAR), the Indian Society of Agroforestry and Global Initiatives.


Space • NASA Launched New Communication Satellite – The National Aeronautics and Space

Administration (NASA) has launched a new communications satellite on January 23, 2014. The piece of space technology is the latest part of the agency’s effort to strengthen its communication network between the International Space Station and Earth. Boeing-built satellite on board, called TDRS, will be the 12th member of the Tracking and Data Relay Satellite System Each satellite has a pair of dish antennas 4.5 m in diameter.

Science and Technology • Continuation of the Mission on Nano Science and Technology – The Union Cabinet gave its

approval for continuation of the Mission on Nano Science and Technology (Nano Mission) in its Phase-II in the 12th Plan Period at a total cost of Rs.650 crores on February 20, 2014. Nano Technology is a knowledge-intensive and ‘enabling technology’ which is expected to influence a wide range of products and process with far-reaching implications for the national economy and development.

• Robotic Floats in Indian Ocean – India has joined hands with Australia to learn ‘what makes the Indian Ocean tick’ and how both countries can benefit from it. The researchers from the two countries will launch robotic floats, armed with sensors, in the Indian Ocean in mid 2014 to get data which would help them predict the ocean’s impact on regional climate and weather patterns and effectively manage resources. − The Bio Argo Floats are expected to enhance the successful Argo float technology to measure

large-scale changes in the Chemistry and Biology of marine ecosystems below the ocean’s surface.

What are Argo Floats? The Argo floats are a network of 3600 free-floating sensors, operating in open ocean areas to provide real-time data on ocean temperature and salinity.

• Artificial Muscles made from Thread – University of British Columbia Electrical and Computer Engineering professor John Madden and Ph.D candidate Seyed Mohammad Mirvakili, created inexpensive artificial muscles that generate far more force and power than human or animal muscles of the same size.

• GPS System to track e-mails Developed - A new system e-mail Miles using Global Positioning System (GPS) technology to calculate the number of miles an e-mail has travelled before reaching an inbox was developed on February 18, 2014. The system uses GPS technology and internet tracking to determine where a message was sent and where it was received. The system was developed by inventor Jonah Brucker-Cohen.

• World’s First NFC-enabled Desktop PC in India – Multinational computer hardware company ASUS announced the launch of the M70AD Desktop PC with the latest 4th generation Intel Core processor for improved performance and graphics for the most demanding of tasks, and Near Field Communication (NFC) technology for wireless pairing with Android-based devices.

• HAL Delivers Crew Module Structural Assembly to ISRO – Hindustan Aeronautics Limited (HAL) announced recently that it has delivered the first Crew Model Structure Assembly for the Human Spaceflight Programme to Indian Space Research Organisation (ISRO). Defence major HAL handed over the Crew Module to ISRO’s Vikram Sarabhai Space Centre (VSSC) in Thiruvananthapuram.

Health/Diseases/Drugs • Bidies are First Tobacco Product Banned by FDA using New Powers – For the first time, the Food

and Drug Administration (FDA) of USA used its powers to stop a manufacturer from selling and distributing a tobacco product on February 21, 2014. − Bidis are thin, had rolled cigarettes that are made mostly in India and other Southeast Asian

countries.


• Three Different Detection Kits Launched – The Union Minister of Health & Family Welfare, Ghulam Nabi Azad launched indigenously technologies developed by the National Institute of Nutrition (NIN) Hyderabad on February 20, 2014. These include three different kits for detection of food borne pathogens, diagnosing iron deficiency anemia and diagnosing Vitamin-A deficiency.

• Retail Sale of Oxytocin Banned – The government has banned the retail sale of the controversial hormone drug ‘Oxytocin’ by pharmacies to curb its misuse by dairy owners and farmers who use it boost milk production and plump up the size of vegetables and fruits.

• India Launched HIV Salvage Therapy – India launched third-line drug therapy for people living with HIV/AIDS and extended free Anti-Retroviral Therapy (ART) to more of them by revising the eligibility norm on February 12, 2014. The third-line therapy, sometimes called salvage or rescue therapy is prescribed for people who have limited drug options left-after the failure of at least two drug regimens and with evidence of HIV resistance to at least one drug in each line or the latter cause alone.

• Mother and Child Tracking Facilitation Centre Inaugurated – A ‘Mother and Child Tracking Facilitation Centre’ was inaugurated by Union Minister of Health and Family Welfare Ghulam Nabi Azad in Delhi on January 31, 2014. This centre, set up with the support of GVK EMRI, tracks the health of pregnant women and newborn. Objective – This project is aimed at supporting pregnant women and newborn with healthcare records and immunisation and vaccination status of newborn.

Energy/Gas/Oil • India Became World’s Third Biggest Crude Oil Importer – With 3.86 million barrels per day of

crude oil imports, India has overtaken Japan as the world’s third biggest crude oil importer in 2013. World’s Top Five Oil-Importing Countries China imports 6.30 million barrels per day USA imports 6.24 million barrels per day India imports 3.86 million barrels per day Japan imports 3.64 million barrels per day Germany imports 2.67 million barrels per day

Environment • NGT Banned Tyre Burning in Public – The National Green Tribunal (NGT) has banned the

burning of tyres at public places, such as roads and areas surrounded by residential buildings and also during protests by political and religious groups as it is likely to cause health hazard. The Western Zone Bench of NGT was hearing the petition against the Maharashtra Pollution Control Board (MPCB) and the State of Maharashtra, filed by a group of 14 lawyers who argued that burning tyres on the streets creates toxic smoke and poses a serious threat to the environment by increasing air pollution.

• Environmental Performance Index 2014 – India has been ranked at a low 155th position in a global list that places countries on how well they perform on high-priority environmental issues on January 25, 2014. The 2014 Environmental Performance Index (EPI), released has ranked 178 countries in total.

Transport/Cars/Scooters • Pune Metro Rail Project Approved – Union Minister of Urban Development and Parliamentary

Affairs Kamal Nath has accorded ‘in principle’ approval to the Pune metro rail project. It will cover a length of 31.51 km along two corridors viz. Corrider-1 covering 16.59 km from PCMC to Swargate and Corridor-2 covering 14.92 km from Vanaz to Ramwadi. This metro rail project will improve the public transport system in the city of Pune.

• Purushottam Express to get First Braille-Signage Coach – Purushottam Express is slated to become the first train in the country to have a Braille-embedded AC coach for visually-challenged passengers on February 16, 2014.


− The first coach with Braille signages, manufactured at Integrated Coach Factory in Chennai is ready and stationed to be rolled out with the Purushottam Express. The AC coach is equipped with Braille-embedded signages on berths, toilets, wash basins and doors as well. The Purushottam Express runs from Delhi to Puri.

• India’s First Monorail Inaugurated - Maharashtra Chief Minister Prithviraj Chavan inaugurated India’s first monorail in Mumbai on February 1, 2014. The major new addition to the city’s public transport system was made available for public use on February 2, 2014. The First phase of Mumbai Monorail is comprised of 8.9 km long Wadala-Chembur section.

Films/Film Festival • Black, the popular Indian film starring Amitabh Bachchan and Rani Mukherjee was screened at

Fakel Theatre, Shosse Enthusiastov in Moscow. Festival • Taj Mahotsav - The ten day annual festival began in Agra, Uttar Pradesh on February 18, 2014. The

theme of the festival for this year is Paigham-e-Mohahabbat or the message of love.

• Khajuraho Dance Festival – The world famous Khajuraho Dance Festival began at Khajuraho, Madhya Pradesh on February 20, 2014. The Dance Festival will be celebrated from February 20-26, 2014.

• Maru Mahotsav – The famous desert festival in Jaisalmer began on February 12, 2014. A three-day long extravaganza of dances, music, handicraft fairs and interesting competitions.

• Attukal Pongala Festival 2014 Celebrated (Kerala) – The festival begins on February 8, 2014 and concludes on February 17, 2014. Attukal Pongala is a famous festival celebrated annually at the renown of Attukal Devi Temple. The significance of Attukal Devi Temple Pongala is entered the Guinness Book of World Records is the largest annual gathering of women in the world in a single place on a single day irrespective of caste, creed or religion.

• Sammakkaa Saarakka Fair – This fair is also called Jatara, the largest tribal religious congregation of the world began in Andhra Pradesh at Medaram in Warangal district on February 12, 2014.

Media/IT/Telecommunication • Free Wi-Fi Zone Unveiled – Chief Minister Nitish Kumar unveiled the 20-km free Wi-Fi zone, the

longest across the globe, at a function christened e-Bihar Summit in Patna on February 19, 2014. He also unveiled a City Surveillance and Dial 100 scheme under which at least 100 CCTV cameras installed in different localities of the state capital became operational. − A State Data Centre has also been opened for storing of the ‘data’ collected by these cameras. The

state’s free Wi-Fi zone is the longest in the world since China’s 3.5 km zone was treated as the longest so far.

• HYLITES Developed by SCR – The South Central Railway (SCR) launched Hyderabad Live Train Enquiry System (HYLITES) on February 10, 2014. It is the first of its kind in India developed by South Central Railway on out-sourcing basis. − HYLITES is a Global Positioning System (GPS) and General Packet Radio Service (GPRS) based

smart phone application that operates on android platform. HYLITES will display real time information of the live status information like arrival, departure, platform numbers etc from Secunderabad, Hyderabad and Kachiguda stations. It also gives information about all running Multi-Modal Transport System (MMTC) and local trains.

• National Cloud under MeghRaj Launched – Kapil Sibbal, Minister of Communications and Information Technology, launched the National Cloud under ‘MeghRaj’ Initiative on February 4, 2014. The National Cloud is being implemented by the NIC. In order to utilise and harness the benefits of Cloud Computing, government of India has embarked upon an ambitious initiative GI Cloud which has been named as ‘MeghRaj’.


− The focus of this initiative is to accelerate delivery of e-services in the country while optimizing ICT spending of the government. This will ensure optimum utilisation of the infrastructure and speed up the development and deployment of e-governance applications.

What is Cloud Computing? It is a type of computing that relies on sharing computing resources rather than having local servers or personal devices to handle applications. In cloud computing, users access software applications remotely through the internet or other network via a cloud application service provider.

• Worldfloat Introduced Citydeals – Worldfloat, a social networking site announced that it had introduced e-commerce feature named Citydeals that would take on the major players like Flipkart, Snapdeal and OLX in discount deals market on February 18, 2014. The new feature would allow users to sell and buy products locally.

• On the country’s 65th Republic Day, National broadcaster Doordarshan for the first time beamed the live telecast of the ceremony from Rajpath in superior High Definition Transmission and also streamed it on YouTube.

Appointments/Election • CPN-UML’s Subash Chandra Nembang was elected unopposed as Chairperson of the Constituent

Assembly on February 18, 2014. The CA Chair is also the Speaker of the Legislature Parliament.

• Mukul Mudgal – Former Chief Justice of Punjab and Haryana High Court Mukul Mudgal will take over as the new chairperson of Broadcasting Content Complaints Council (BCCC), a self-regulatory body for non-news channels.

• Major General Konsam Himalay Singh, the first army officer from the North-East has been cleared for promotion to the rank of Lieutenant General on February 13th, 2014. He was awarded the Ati Vishisht Sewa Medal in 2013.

• N. Srinivasan – President of the Board of Control for Cricket in India (BCCI), N. Srinivasan, will be the first chairman of the revamped International Cricket Council (ICC) board.

• Marco Lambertini was appointed as Director General of WWF International on 6th February, 2014. World Wide Fund for Nature (WWF) formerly known as World Wildlife Fund.

• Satya Nadella – Microsoft’s board named Hyderabad-born Satya Nadella as Chief Executive Officer (CEO) of the legendary tech giant that has given the world products which have become household names like Windows, Word, Excel, PowerPoint and Outlook Express on February 4, 2014. He will be only the third CEO of Microsoft after founder Bill Gates and Steve Ballmer.

Satya Nadella, 46, becomes world’s top-ranked CEO of Indian origin, well ahead of Peosico’s Indra Nooyi (on all parameters).

• B.N. Talukdar – Union Ministry of Petroleum and Natural Gas confirmed the appointment of B.N. Talukdar as the head of Directorate General of Hydrocarbon (DGH) on February 5, 2014. He succeeded Rajiv Narayan Choubey.

• Harish Rawat – a Union Minister has been sworn-in as the new Chief Minister of Uttarakhand on February 1, 2014 succeeding Vijay Bahuguna.

• Vivek Lall – Renowned aerospace and cyber security expert Vivek Lall has been appointed Speical Advisor to United Nations to help steer the multi-nation body frame a policy and ensure its implementation in the area of broadband and associated cyber security issues on January 31, 2014.

• Dr. Poonam Khetrapal Singh takes charge as WHO Regional Director for South-East Asia Region from February 1, 2014. She is the first woman to hold this post.

• Saurabh Sarkar – MCX Stock Exchange (MCX-SX), the country’s newest full-fledged bourse, announced the appointment of Saurabh Sarkar as its new CEO and Managing Director, following approval from market regulator SEBI on February 2, 2014.


• Manoj Vaish took charge as Managing Director and CEO of the country’s leading commodity exchange MCX on February 1, 2014 that is under the regulatory glare following troubles at the promoter group.

• Edward Snowden – Former National Security Agency contractor, Edward Showden, was elected as the new Rector of the University of Glasgow on February 18, 2014.

• John Thompson was appointed as the Chairman of Microsoft on February 5, 2014 by the Board of Directors at a meeting held in Washington, US. He succeeded Bill Gates who assumed the role of Technology Advisor to the CEO of Microsoft.

• Archana Sunadaram, IPS officer of Tamil Nadu cadre, has been appointed special director in the CBI. She is the first woman officer to have been appointed for the post.

• Actor Mithun Chakraborty (West Bengal), T. Subbirami Reddy (Andhra Pradesh) and Sanjay Singh (Assam) elected as member of Rajya Sabha.

• New Prime Minister in Nepal – The leader of Nepal’s largest political party, Sushil Koirala, has been elected Prime Minister, nearly three months after Constituent Assembly elections on February 10, 2014.

Resignation/Dismissed/Retired/Quit • Archana Bhargava, the CMD of United Bank of India (UBI) has resigned on February 21, 2014.

• Chief Minister of Andhra Pradesh, N. Kiran Kumar Reddy submitted his resignation to Governor ESL Narasimhan on February 19, 2014 in protest against the Union government’s decision to ‘divide Telugus for the sake of votes and seats’.

• Arvind Kejriwal quit as Chief Minister of Delhi after a stint of 49 turbulent days on February 14, 2014 putting the blame for his government’s demise on Mukesh Ambani along with Congress and BJP, whom he accused of colluding to thwart the Aam Aadmi Party’s efforts to get Jan Lokpal Bill approved. The AAP government’s decision to file FIRs against Ambani and Congress leaders for ‘illegally’ raising the price of natural gas was the reason for the Jan Lokpal Bill being defeated.

• Enrico Letta – Italian Prime Minister Enrico Letta resigned after less than a year in office on February 14, 2014. President accepted the resignation.

• Kumari Selja, who has been nominated to the Rajya Sabha, has quit the Union Council of Ministers to work in the party on January 27, 2014. She is second woman minister to have quit the Union Council of Ministers in the recent past after Jayanthi Natarajan.

• V.P. Aggarwal – Government relieved Airports Authority of India (AAI) Chairman VP Aggarwal from this post on January 24, 2014. The additional charge as AAI chief was given to Alok Sinha, a joint Secretary in Aviation Ministry.

• P. Waythamoorthy, a prominent ethnic Indian Minister in Malaysia has resigned from the Cabinet over the government’s failure to fulfil its promises to protect the rights of minority groups in the Muslim-majority nation on February 11, 2014.

• Sumit Malik’s Gold Medal Stripped-Off – India’s Sumit Malik, who won the 400 m gold in the men’s 400 m race has been stripped off his medal for violating anti-doping rules and illegally participating in Lusofonia Games in Lieu of a provisional suspension imposed by the National Anti-Doping Agency (NADA) on January 28, 2014.

Deaths • Famous Chhau dancer Makardhwaj Darodha passed away on February 17, 2014.

• Olympian distance runner Ranjit Bhatia, who represented India in 1960 Games in Rome passed away on February 9, 2014.


• Eminent Carnatic vocalist R.K. Srikantan passed away in Seshadripuram on February 17, 2014. Winner of the Padma Bhushan, Srikantan was on September 3, 2013.

• Amarkant – Noted Hindi litterateur and Jnanpith award winner Amarkant passed away in Allahabad on February 17, 2014.

• Balu Mahendra – Film maker and Cinematographer, passed away on February 13, 2014.

• Philip Seymour Hoffman – The Oscar award-winning American actor Philip Seymour Hoffman has been found dead in New York on February 2, 2014.

• Silverine Swer – Meghalaya’s oldest voter and the first Padmashri awardees from the State, Silverine Swer, passed away at the age of 103 years on February 1, 2014. She was affectionately called Kong Sil.

• Renowned Bhajan singer Juthika Roy passed away in Kolkata on February 6, 2014. She was honoured with Padma Shri in 1972.

• Raymond Well, the founder of the watch brand of his name died on January 27, 2014.

• On 16th February, 2014, veteran congress leader Parasram Maderna considered as strong pillar of Jat politics, died in Rajasthan.

• On 21st February, 2014, Odisha Tourism and Cultural Minister Maheshwar Mohanty was shot at by two unidentified gunmen in Puri.

Awards/Honours • 64th Berlin International Film Festival – The Chinese film ‘Bai Ri Yan Huo’ (Black Coal, Thin Ice)

has won the Golden Bear for Best Picture. Liao Fan - Best Actor, while Haru Kuroki won Best Actress for her role in the Japanese movie ‘Chiisai Ouchi’ (The Little House). − Marathi film Killa, directed by Avinash Arun, has bagged the Crystal Bear for the Best Film

awarded by the Children’s Jury at the Berlin International Film Festival.

• BAFTA Awards – The 3-D space disaster movie Gravity and the drama 12 Years a Slave scooped the awards at the 2014 BAFTA awards, with the harrowing portrayal of 19th century American slavery taking out best film and best actor awards. Alfonso Cuaron - the Best Director, Disney’s Frozen – Best Animated film and Dame Helen Mirren – highest award, a fellowship.

• International Gandhi Award – President Pranab Mukherjee presented the International Gandhi Award for the year 2013 to Dr. Vijaykumar Vinayak Dongre and Prof. Guocheng Zhang for making outstanding contribution in the field of leprosy on February 16, 2014.

• Arunima Sinha received Amazing Indian Award on February 6, 2014 for scaling Mount Everest despite being physically challenged.

• World Press Photo Award – US photojournalist John Stanmeyer has won 1st prize in World Press Photo Awards for his image of African migrants near Dijibouti city on February 14, 2014.

• Krishi Karman Awards – The President presented Krishi Karman Awards to Chief Ministers of Madhya Pradesh, Odisha, Bihar, Meghalaya and Agriculture Ministers of other nine States for excellence in foodgrain production on February 10, 2014.

• Zayed’s International Prize – Indian environment expert Ashok Khosla has been awarded the UAE’s Prestigious Zayed’s international prize in environment with a prize money of $300000 for his scientific and technological achievement on February 3, 2014.

• Othmer Gold Medal - Kiran Mazumdar-Shaw of the country’s largest biotech research firm, Biocon Limited, has been named winner of the 2014 Othmer Gold Medal, a top award of the US-based Chemical Heritage Foundation on January 23, 2014.


• 26th Moorti Devi Award – The Vice President of India, M. Haamid Ansari Presented the award to Haraprasad Das, one of the most influential contemporary poet and thinker in Odia Literature at a function organised by Bharatiya Jnanpith on February 4, 2014.

• Republic Day Parade Awards – West Bengal has won the ‘Best Tableau Award’ at this year’s Republic Day Parade while Tamil Nadu and Asom came in second and third on January 28, 2014. Showcasing the spirit of ‘Purulia Chhau’, the Ministry of Defence adjudged the West Bengal tableau the best of the total of 18 tableaux that rolled down Rajpath on January 26, 2014. − The Tamil Nadu tableau was on Pongal festival while Asom paid tributes to its iconic artiste and

Padma Vibhusan award winner Bhupen Hazarika, depicting his achievements in the field of cinema, music, culture and literature.

• The President of India, Pranab Mukherjee was conferred Award of Honour on February 11, 2014 in New Delhi by Ron Burton, President of Rotary International. − The Rotary Club is one of the World’s first service organisations established on February 23, 1905

in Chicago with the vision of Paul P. Harris.

• FICCI Sports Awards – India’s top archer Deepika Kumari was named the ‘Sports person of the Year’ at the India Sports Awards, presented by FICCI on February 13, 2014. Former India captain Rahul Dravid was conferred with the ‘Lifetime Achievement’ award. PV Sindhu, bronze medallist at the Badminton World Championships – ‘Breakthrough

Sportsperson of the Year’, cricketer Yuvraj Singh - Most Inspiring Sportsperson of the Year’. Sunil Chhetri was awarded the ‘All India Football Federation (AIFF) Player of the Year’. Devendra Jhajharia, who won the gold medal at the 2004 Athens Olympics, was named the

‘Para-sportsperson of the Year’. The ‘Team of the Year Award’ went to the Indian women’s archery team.

All India Football Federation, (AIFF) received the ‘Best National Sports Federation Award’ while Oil and Natural Gas Corporation (ONGC) was given the ‘Best Company Promoting Sports Award’. Among other awardees were Rani Rampal (Comeback of the Year Award) and Baldev Singh (Coach or Support Staff Category).

• DMRC Awarded for Energy Efficiency – For its energy efficient measures, the Delhi Metro has become the first rail system in the world to be awarded the Gold Standard foundation – a globally accepted certification standard for carbon mitigation projects on February 2, 2014. The Delhi Metro Rail Corporation (DMRC) registered for the certification as the energy efficiency measures undertaken in 51 of its stations in Phase-II qualified under the criterion verified by the auditors.

• Consecutively for the third year in a row, SJVN’s flagship 1500 MW Nathpa Jhakri Hydro Power Station has been selected for ‘Silver Shied’ for the year 2012-13.

Sports/Game • TENNIS – ATP Challenger Trophy – Indian tennis player Yuki Bhambri won the first ever ATP

Challenger singles title of his career after scoring a straight-set win over Israeli fourth seed Amir Weintraub in Fergana, Uzbekistan on February 8, 2014.

• CRICKET India-New Zealand ODI Series – New Zealand won the ODI Series of 5 matches against India by 4-0 after defeating India in the fifth match at the Westpac Stadium at Wellington on January 31, 2014. Indian captain Mahendra Singh Dhoni in the fifth match became the fourth fastest batsman to complete 8000 runs in one-day cricket. Man of the match – Ross Taylor.

Irani Cup - Rest of India lost to Ranji Trophy winners Karnataka in Irani Cup triumph on February 12, 2014 at the M. Chinnaswamy Stadium in Bengaluru.

Ranji Trophy – Karnataka defeated Maharashtra by seven wickets to win the 2013-14 season’s Ranji Trophy on February 2, 2014 at the Rajiv Gandhi International Stadium, Hyderabad. Man of the match – Lokesh Rahul.


• BASKETBALL – Lusofonia Games – India won the basketball gold in the men’s section at the Lusofonia Games, defeating Angola on January 27, 2014 at the Shyam Prasad Mukherjee Indoor Stadium in Taleigao in Goa. The women’s gold was bagged by Mozambique, who defeated Angola. India won the bronze.

• MOTOR RACE – MRF Challenge 2013 – Rupert Svendsen-Cook, the 23-year-old from Britain, emerged champion in the 2013 MRF Challenge series on February 1 with two podium finishes. The Londoner took home a purse of Rs.25 lakh, the most in Indian motorsport.

• SQUASH – Winnipeg Open – Veteran Indian player Joshna Chinappa lifted her maiden WSA World Tour title with the Winnipeg Winter Club Open trophy after beating Egypt’s Heba El Torky in final on February 3, 2014.

• BOXING – Bocskai Invitation Tournament – Boxer L. Devendro Singh won a gold at the Bocskai Invitation Tournament as India finished with four medals in the event held in Debrecen, Hungary on February 9, 2014.

• WRESTLING – Dave Schultz International – Indian women and men’s freestyle wrestlers finished third in the Wrestling Tournament at the Olympic Training Centre in Colorado Springs (USA) on February 3, 2014. Titan Mercury (USA) lifted the men’s freestyle trophy.

• ATHLETICS – Om Prakash Singh – Shot putter Om Prakash Singh Karhana gave the lone gold to India in the 6th Asian Indoor Athletics Championships as he won the gold medal on the second and final day of the event at Hanghou, China on February 16, 2014.

• SHOOTING – Abhinav Bindra won his second gold medal at the Inter Shoot Tri Series Shooting at The Hague, the Netherlands on February 7, 2014. Abhinav Bindra is the first Indian to win an individual Gold medal in Olympic.

Heena Sindhu – Indian Pistol Shooter Heena Sindhu was officially declared a world record holder by the International Shooting Sports Federation (ISSF) on January 30, 2014. Heena, who shot gold in the 10m air pistol event at the World Cup Finals in Munich, Germany in November last year, had scored 203.8 in the finals.

− Though the score was the highest in the finals following the new format (January, 2013) the ISSF gave the confirmation now. She also won gold medal at the 2010 Commonwealth Games in New Delhi.

• IOC Lifted Ban on IOA – India was welcomed back by the International Olympic Committee (IOC) within days of conducting a fresh election in the IOA on February 11, 2014. The IOC lifted the 14-month old ban on India after the Indian Olympic Association (IOA) barred charge-framed officials from its fresh election held on February 9, 2014 in which World Squash Federation Chief N. Ramachandran, was elected as the President.

Flashback – It all started 14 months ago when on December 4, 2012, the IOC suspended the IOA for adhering to the government’s Sports Code and for a allowing tainted persons to take part in the election process.

Report • Arms Sales Rise – The Stockholm International Peace Research Institute (SIPRI) stated in its new

report released on January 31, 2014 that India’s remains the top buyer of Russian arms. According to SIPRI’s annual list of the world’s 100 largest arms manufacturers, arms sales by Russian firms increased by 28%. The report also revealed that India is the world’s top arms importer by volume from 2008 to 2012.

General - National • Withdrawal of Wendy Doniger’s Book – Penguin India has agreed to withdraw American

Indologist Wendy Doniger’s book The Hindus: An Alternative History from the Indian market which had created a stir among various right-wing groups over allegedly ‘defaming the Hindu religion and freedom fighters’.


Other Books being Blacked Out in Recent Past The Satanic Verses – Salman Rushdie (1998) El Sari Rojo – Javier Moro Shivaji - Hindu King in Islamic India – James Laine Three Hundred Ramayanas – AK Ramanujan

• NALSA Opened Free Legal Services – With the motto that “no person in the country should starve from hunger of justice”, the Supreme Court and National Legal Services Authority (NALSA) opened more than 2600 village legal aid clinics across the states for the people to avail free legal services at their doorstep on January 24, 2014.

• On 5th February, 2014, the government approved plan to extend visa-on-arrival facility to almost all countries barring Pakistan, Sudan, Afghanistan, Iran, Iraq, Nigeria, Sri Lanka and Somalia.

• On 8th February, 2014, Commemorative stamp in honour of late ghazal singer Jagjit Singh was released by Prime Minister Manmohan Singh, Ghazal singer passed away in October, 2011.

International • United States – A giant winter storm is unleashing a second wave of heavy snowfall on the US

north-east, as hundreds of thousands of people remain without power in the States in its southern wake. This Storm has been named Snomegeddon.

• Indonesia – President Susilo Bambang Yudhoyono declared a state of emergency on the main island of Java because of a major volcanic eruption. Mount Kelud in the east Java erupted and sends a cloud of ash 30 km into the sky and blanketed villages up to 500 km away.

• Hong Kong – The Hong Kong Police successfully dismantled the largest World War-II bomb yet found in the city after its discovery on a construction site on February 7, 2014. The nearly one-tonne US Navy ANM66 bomb was discovered by building workers in the Happy Valley district. It was the biggest bomb ever found in Hong Kong.

• Guinness World Record - President of Israel Shimon Peres set a new Guinness World Record on February, 2014. He delivered the largest online civics class in the world. He delivered the classes using Cisco’s advanced technology.

• China marked the arrival of its Year of the Horse on January 31, 2014 which is celebrated across the world by Chinese people. This is the Chinese Lunar New Year is the only traditional day of holiday for the people of China.

• Russia – Olympic torch was lit in Russia at its highest point on the western peak of Mount Elbrus, the highest peak of Europe on February 1, 2014.

• The Vice-President of India M. Hamid Ansari and the visiting Chinese State Councilor Yang Jiechi launched the India-China Year of Friendly Exchanges. The Year 2014 has been designated by the governments of India and China as the Year of Friendly Exchanges.

• Belgium allowed Euthanasia – Belgium became the first country to allow Euthanasia for terminally ill children of any age on February 13, 2014 when its Lower House of Parliament passed new right-to-die legislation by a large majority. The law goes beyond Dutch legislation that set a minimum age of 12 for children judged mature enough to decide to end their lives. − Euthanasia refers to the practice of intentionally ending a life in order to relieve pain and

suffering. There are different Euthanasia laws in every country.

• Historic Talk between Two Rivals – North and South Korea have held their first high-level government talks in seven years on their fortified border at the Panmunjom truce village on February 12, 2014 and discussed a range of issues including reunions of families separated during the Korean War.


− North Korea sent the second-highest ranking official in the ruling Workers’ Party department charged with ties with the South. It was the first high-level sit-down by the rivals since South Korean President Park Geun-Hye took office a year ago.

• Scotland - Same Sex Marriage Bill Passed – The Scottish Parliament approved the Same Sex Marriage Bill on February 3, 2014. The Scotland became the 17th country to give the green signal to same sex marriages which was an important step for equal rights.

Abbreviation BIS - Bank for International Settlements CIIL - Central Institute of Indian Languages CNN - Cable News Network DCSEM - Directorate of Construction, Services and Estate Management FSSAI - Food Safety and Standards Authority of India HESCO - Himalayan Environmental Studies and Conservation Organisation IANS - Indo-Asian News Service IDC - International Data Corporation IIFM - Indian Institute of Forest Management ISAC - ISRO Satellite Centre LBSNAA - Lal Bahadur Shastri National Academy of Administration NASA - National Academy of Statistical Administration PUCL - People’s Union for Civil Liberties SAIEVAC - South Asia Initiative to End Violence Against Children SECI - Solar Energy Corporation of India UNCRPD - United Nations’ Convention on the Rights of Persons with Disabilities

Books and Author The Hindus: An alternative History – by Wendy Doniger

Public Issues Before Parliament – by Vijay Darda

ModiNomics: Inclusive Economics, Inclusive Governance – by Sameer Kochhar

Hashiye Par Padi Duniya – by Baldrishna Gupta

Healer: Dr. Pratap C. Reddy and the Transformation of India – by Pranay Gupte

My Father, Our Fraternity – by Amjad Ali Khan

Reflections of Contemporary India – by Shekhar Dutt, Governor of Chattisgarh


INTERIM BUDGET

Finance Minister P.Chidambaram presented the Interim Budget 2014-15 in Lok Sabha on February 17, 2014. In his Budget Speech Finance Minister has rejected the charge of policy paralysis. He presented Interim budget of four months due to upcoming Lok Sabha elections in April/May this year.

The Current Economic Situation and the Challenges The state of world economy has been the most decisive factor affecting the fortunes of every

developing country. The world economy has been witnessing a sliding trend in growth, from 3.9% in 2011 to 3.1% in 2012

and 3% in 2013. The economic situation of major trading partners of India, who are also the major source of our foreign

capital inflows, continues to be under stress. The United States has just recovered from long recession, Euro zone, as a whole, is reporting a growth of 0.2%, and China’s growth has also slowed down.

The economic challenges faced by our country are common to all emerging economies. Despite these challenges, we have successfully navigated through this period of crisis.

Apart from embarking on the path of fiscal consolidation, the objectives of price stability, self sufficiency in food, reviving the growth cycle, enhancing investments, promoting manufacturing, encouraging exports, quickening the phase of implementation of projects and reducing a stress on important sectors were the goals set in 2012-13.

STATE OF ECONOMY

Deficit and Inflation The fiscal deficit for 2013-14 contained at 4.6%. The current account deficit projected to be at $ 45 billion in 2013-14 down from $ 88 billion in 2012-13. Foreign exchange reserve to grow by $ 15 billion in this financial year. No more talk of down grade of Indian Economy by Rating Agencies. Fiscal stability at the top of the Agenda. The government and the RBI have acted in tandem to bring down inflation. WPI inflation down to 5.05% and core inflation down to 3.0% in January, 2014. Food inflation down to 6.2% from a high of 13.8%.

Agriculture Agriculture sector has performed remarkably well. Foodgrain production estimated for the current year is 263 million tonnes compared to 255.36 million

tonnes in 2012-13. Agriculture export likely to cross $ 45 billion higher from $41 billion in 2012-13. Agriculture credit to exceed the target of Rs.7 lakh crore. Agriculture GDP growth for the current year estimated at 4.6% compared to 4.0% in the last four years.

One Rank, One Pension

In his interim budget speech, Finance Minister P. Chidambaram announced that the Defence Budget was being raised to Rs.224000 crore. Rs.500 crore will be transferred in 2014-15 for implementing the one rank one pension decision.

Under the one rank, one pension rule, retired soldiers of the same rank and length of service will receive the same pension, regardless of when they retire. Currently, pensioners who retired before 2006 receive less pension than their counterparts, even their juniors. There are 14 lakh serving and 24lakh retired military personnel in the country this time.


Investment Savings rate at 30.1% and investment rate of 34.8% in 2012-13. The government set up a Cabinet Committee on Investment and the Project Monitoring Group to boost

investment. By end of January 2014, Projects numbering 296 with an estimated project cost of Rs.660000 crore cleared.

Foreign Trade Despite a decline in growth of global trade, our export has recovered sharply. The estimated merchandise export is estimated to reach $326 billion indicating a growth rate of 6.3% in

comparison to the previous year.

Manufacturing The sluggish import is a matter of concern for manufacturing and domestic trade sector. Due to deceleration in investment, the manufacturing sector has witnessed a sluggish growth. The National Manufacturing Policy has set the goal of increasing the share of manufacturing in GDP to

25% and to create 100 million jobs over a decade. 8 National Investment and Manufacturing Zones (NIMZ) along Delhi Mumbai Industrial Corridor

(DMIC) have been announced. 9 Projects had been approved by the DMIC trust. 3 more Industrial Corridors connecting Chennai and Bengaluru, Bengaluru and Mumbai & Amritsar

and Kolkata are under different states of preparatory works. Additional capacities are being installed in major manufacturing industries. Notification of a public procurement policy, establishing technology and common facility centres, and

launching the Khadi Mark are steps taken to promote Micro Small and Medium Enterprises.

Infrastructure In 2012-13 and in nine months of the current financial year, 29350 MW of power capacity, 3928 km of

National Highways, 39144 km of Rural Roads, 3343 km of New Railway track and 217.5 million tonnes of capacity per annum in our ports have been created to give a big boost to infrastructure industries.

19 Oil and Gas blocks were given out for exploration and 7 new Air ports are under construction. Infrastructure debt funds have been promoted to provide finances for infrastructure projects.

Exchange Rates Rupee came under pressure following indications by US Federal Reserve of reduction in asset

purchases in May, 2013. The government, RBI and SEBI undertook a number of measures to facilitate capital inflows and

stabilize the foreign exchange markets. As a result among emerging economy currencies rupee was least affected when actual reduction took place in December, 2013.

The GDP slow-down which began in 2011-12 reaching 4.4% in Q1 of 2013-14 from 7.5% in the corresponding period in 2011-12 has been controlled by numerous measures taken by the government. Growth in the third and fourth quarter of the current year is expected to be 5.2% and that for the whole year has been estimated at 4.9%.

The declining fiscal deficit, stable Exchange Rate and reducing Current Account Deficit, moderation in inflation, increasing exports are reflection of a more stable economy today.

Economic Initiative Centrally Sponsored Schemes were restructured into 66 Programmes for greater synergy. Funds under

these programmes will be released as Central assistance to State Plan, thus giving greater authority and responsibility. As a result, Central assistance to plans of States & UTs will rise substantially from Rs.136254 crore in B.E. 2013-14 to Rs.338562 crore in 2014-15.

Record Capital expenditure of Rs.257641 crore in 2013-14 by public sector enterprises. About 50000 MW of Thermal and Hydel Power capacity is under construction after receiving all

clearances and approvals. 78000 MW of power capacity have been assumed coal supply. Liberalised FDI policy in tele-communication, pharmaceuticals, civil aviation, power trading exchange,

and multi brand retail to attract large investment.


Approval to establish 2 semi conductor wafer fab units. Approval of IT modernisation project of Department of Post. Kudankulam Nuclear Power Plant Unit-I achieved criticality and is generating 180 Million Units of

power. Fast breeder Reactor at Kalpakkam and 7 Nuclear Power Reactors under construction. National Solar Mission to add 4 Ultra Mega Solar Power Projects each with the capacity of over 500

MW in 2014-15. Ministry of MSME will create the ‘India Inclusive Innovation Fund’ to promote grass root innovations

with social returns to support enterprises in the MSME sector with an initial contribution of Rs.100 crore to the corpus of the fund.

Social Sector Initiative A Venture Capital Fund to provide concessional finance to Scheduled Caste will be set up by IFCI with

an initial capital of 200 crore which can be supplemented every year. The restructured ICDS, under implementation in 400 districts, will be rolled out in remaining districts

from April 1, 2014. A National Agro-Forestry Policy 2014 has been approved. A mechanism for marketing minor Forest produce has been introduced and an allocation of Rs.444.59

crore has been made to continue the Scheme in 2014-15. A new Plan Scheme with an allocation of Rs.100 crore has been approved to promote community radio

station. New technologies such as JE vaccine, a diagnostic test for Thalassaemia and Magnivisualizer for

detection of cervical cancer have been delivered to people.

Additional Central Assistance to some States

A sum of Rs.1200 crore as additional central assistance to North Eastern states, Himachal Pradesh and Uttarakhand in this financial year.

Space India joined a handful of countries when it launched the Mars Orbiter Mission. The country has acquired capability in launch vehicle technology, cryogenics and navigation

meteorological and communication satellites. Several flight tests, navigational satellites and space missions are planned for 2014-15.

Redeeming promises A Corpus has been created for Nirbhaya Fund with a non lapsable grant of Rs.1000 crore. 2 Proposals

to ensure the dignity and safety of women have been approved which will be funded from the Nirbhaya Fund. A sum of Rs.1000 crore has again been provided in FY 2014-15.

The National Skill Certification and monitary reward schemes launched in August 2013 with an allocation on Rs.1000 crore has been widely hailed as a success. A sum of Rs.1000 crore is proposed to be transferred to the NSD Trust to scale up its programme rapidly.

The government remains fully committed to Aadhaar under which 57 crore Unique Numbers have been issued so far and to opening bank accounts for all Aadhaar holders to promote financial inclusion.

Through the Direct Benefit Transfer (DBT) Scheme, a total of Rs.628 crore (5420114 transactions) has been transferred directly to the beneficiaries till January 31, 2014 under 27 Schemes.

Overview of the Interim Budget In order to sustain the pace of plan expenditure, it has been kept at the same level in 2014-15 at which,

it was budgeted in 2013-14. The Ministries/Departments which run key flagship programmes have been provided adequate funds

in 2014-15 either equal to or higher than in the B.E. 2013-14. These include Ministries namely, Minority Affairs, Tribal Affairs, Housing & Poverty Alleviation, Social Justice & Empowerment, Panchayat Raj, Drinking Water and Sanitation, Women & Child Development, Health & Family Welfare, Human Resource Development and Rural Development.


Railways Budgetary support to Railways has been increased from Rs.26000 crore in B.E. 2013-14 to Rs.29000

crore in 2014-15. It is proposed to identify new instruments and new mechanisms to raise funds for Railway Projects.

SC Sub-Plan and Tribal Sub-Plan, Gender Budget and Child Budget Rs.48638 crore and Rs.30726 crore are allocated to the SC Sub-Plan and Tribal Sub-Plan respectively. Gender Budget and Child Budget has Rs.97533 crore and Rs.81024 crore respectively.

Non Plan Expenditure Non Plan expenditure is estimated at Rs.1207892 crore. The expenditure on subsidies for food, fertilizer & fuel will be Rs.246472 crore slightly higher than the

revised estimates of Rs.245453 crore in 2013-14. Rs.115000 crore has been allocated for food subsidies taking in to account, government’s firm and

irrevocable commitment to implement the National Food security Act throughout the country.

Hike in Defence Budget 10% hike in Defence allocation has been give in comparison to B.E. 2013-14. The government has accepted the principle of one rank one pension for the Defence Forces which will

be implemented prospectively from the FY 2014-15. A sum of Rs.500 crore is proposed to be transferred to the Defence Pension Account in the current Financial Year itself.

Central Armed Police Forces A Modernisation Plan at a cost of Rs.11009 crore has been approved to strengthen the capacity of

Central Armed Police Forces and to provide them the state-of-art, equipment and technology.

Financial Sector All the announcements concerning the Financial sector made in the Budget Speech of February, 2013

have been implemented. Rs.11300 crore is proposed to be provided for Capital infusion in Public Sector Banks. 5207 new branches have been opened against the target of 8023. Bharatiya Mahila Bank has been established. Rs.6000 crore and Rs.2000 crore have been provided to Rural and Urban Housing Funds respectively. The target of Rs.700000 crore of Agricultural Credit is likely to be exceeded by the Banks. The target for

2014-15 is Rs.800000 crore. Rs.23924 crore has been released under the Internet Subvention Scheme on farm loans, with effective

rate of interest on farm loans at 4% including subvention of 2% and incentive of 3% for prompt payment.

Credit to Minority Communities The number of bank accounts of minorities has increased to 4352000 at the end of March, 2013 from

1415000 ten years ago. The volume of lending has soared to Rs.66500 crore from Rs.4000 crore in the same period.

Loans to minorities stood at Rs.211451 crore at the end of December, 2013.

Self-Help Groups (SHGs) Loans Ten years ago, only 971182 women Self-Help Groups (SHGs) had been credit linked to banks. At the

end of December 2013, 4116000 women SHGs had been provided credit and the outstanding amount of credit was Rs.36893 crore.

Education Loans A moratorium period is proposed for all education loans taken up to March 31, 2009 and outstanding

on December 31, 2013. The government will take over the liability for outstanding interest as on December 31, 2013 but the borrower would have to pay interest for the period after January 1, 2014. An amount of Rs.2600 crore has been provided this year and it will benefit nearly 9 lakh student borrowers.


Financial Markets

Steps envisaged deepening the Indian Financial Market: ADR/GDR Scheme revamp an enlargement of the scope of depository receipt. Liberalisation of rupee denominated corporate bond market. Currency Derivatives Market to be deepened and strengthened to enable Indian Companies to fully

hedge against foreign currency risk. To create one record for all financial assets of every individual. To enable smoother clearing and settlement for international investors looking to invest in Indian

bonds.

Insurance The LIC and the four public sectors general insurance companies have opened around 3000 offices in towns with a population of 10000 or more to serve peri-urban and rural areas.

Commodity Derivatives Markets Swift action taken to sequester National Stock Exchange Limited (NSEL) after the payment crisis in the

NSEL, this prevented spill over of the crisis to the other regulated segment of the financial markets. Proposal to amend the Forward Contracts (Regulation) Act.

Key Pending Bills The Insurance Laws (Amendment) Bill and the Securities Laws (Amendment) Bill have not been

passed by Parliament for reasons that have nothing to do with the merits of the Bills.

Public Debt Management Agency Public Debt Management Agency Bill is ready with the Government. It is proposed to establish a non

statutory PDMA than can begin work in 2014-15.

Revenues GST & DTC The government appeals to all political parties to resolve to pass the GST Laws and the Direct Tax Code in the year 2014-15.

Funding Scientific Research It is proposed to set up a Research Funding Organisation that will fund Research Projects selected through a competitive process. Contribution to that organisation will be eligible for tax benefits. The required legislative changes can be introduced at the time of regular Budget.

Off-shore Accounts The government has succeeded in obtaining information on illegal off-shore accounts held by Indians in 67 cases and action is under way. Prosecution for willful tax evasion has also been launched in 17 other cases. More enquires have been initiated in to accounts reportedly held by Indian entities in no tax or low tax jurisdictions.

Changes in Tax Rates Following changes in some indirect tax rates are proposed. States to partner in development so as to enable the Centre to focus on Defence, Railways, National

Highways and Tele-communication. The Excise Duty on all goods falling under Chapter-84 & 85 of the Schedule to the Central Excise Tariff

Act is reduced from 12% to 10% for the period upto June 30, 2014. The rates can be reviewed at the time of regular Budget.

To give relief to the Automobile Industry, which is registering unprecended negative growth, the excise duty is reduced for the period up to June 30, 2014 as follows:

Small Cars, Motorcycle, Scooters and Commercial Vehicles from 12% to 8% SUVs from 30% to 24% Large and Mid-segment Cars from 27/24% to 24/20%


It is also proposed to make appropriate reductions in the excise duties on chassis and trailors – The rates can be reviewed at the time of regular Budget.

To encourage domestic production of mobile handsets, the excise duties for all categories of mobile handsets is restructured. The rates will be 6% with CENVAT credit or 1% without CENVAT credit.

To encourage domestic production of soaps and oleo chemicals, the custom duty structure on non-edible grade industrial oils, and its fractions, fatty acids and fatty alcohols is rationalized at 7.5%.

A concessional custom duty 5% on capital goods imported by the Bank Note Paper Mill India Private Limited is provided to encourage domestic production of security paper for printing currency notes.

The loading and un-loading, packing, storage and warehousing of rice is exempted from Service Tax.

The services provided by cord blood banks are exempted from Service Tax.

The current financial year will end on a satisfactory note with the fiscal deficit at 4.6% (below the red line of 4.8%) and the revenue deficit at 3.3%.

Fiscal Deficit in 2014-15 estimated to be 4.1% which will be below the target set by new Fiscal Consolidation Path and Revenue Deficit is estimated at 3.0%.

The estimate of Plan Expenditure is Rs.555322 crore. Non Plan expenditure is estimated at Rs.1207892 crore.

What is Interim Budget? National Interim Budget refers to the budget of a government that is going through a transition period. These budgets are common in democracies where one political party or a coalition is voted out and another political party or a coalition is voted into office. The two governments often have different fiscal plans, so the old government budget is cut short and a new budget is created. The interim Budget helps span the transition time between the two governments so that the government can continue to function. Countries like India use the term interim Budget specifically to describe this period. A national Interim Budget is created out of necessity. National governments require interim budgets to function in the months it takes for a new government to create its own budget plan. First Interim Budget was presented in the year 1951, when the first General Elections were held in India. Vote on Account A vote-on-account presents an estimate of expenditures to be sanctioned by the exchequer till the Budget is passed. The Budget announces new programmes and estimates the public expenditure fro the fiscal year. A vote-on-account cannot alter direct taxes since they need to be passed through a finance bill. In the Budget, fresh taxes may be imposed, old ones may go, Direct taxes like income tax and indirect taxes are both open to change. The common feature is that both include the previous year’s financial performance of the government. The Significance The Government cannot present a full budget because in such a short session, there’s no time to debate proposals in Parliament. Expenditure for new schemes will have to form part of the new budget, which can be approved only after April 1. Also, it is ideally the new government’s prerogative to decide how it’ll raise and spend money. The newly formed government cannot be burdened by the previous government’s budgetary allocations. While these are the technicalities, many look upon the vote on account as election rhetoric. Many look at it as a window where the government highlights its achievements ahead of elections.


Interim Rail Budget 2014-15

Railway Minister Mallikarjun Kharge presented the Interim Rail Budget 2014-15 for the next fiscal on February 12, 2014 sans much fanfare with no hike in fares or freight rates, and announced 73 new trains and connectivity to two more north-eastern states.

In what was his personal first and the last such exercise in the 15th Lok Sabha for the United Progressive Alliance (UPA) government, the Minister also promised a new tariff-setting body and said work on eastern and western freight corridors was progressing well.

In this Interim Budget, 73 new trains were being introduced, including 17 premium trains, 39 express trains, 10 passenger trains, four suburdan trains and three diesel locomotive inter-city trains for medium distances were announced.

Despite the resource constraints, the targets for the current fiscal were fully achieved, with some 2207 km of new lines, adding two more northeastern states on the country’s railroad map this fiscal-Arunachal Pradesh, Meghalaya.

Anticipating a healthier economic growth, the freight traffic target, he said, was also proposed higher at 1101 million tonnes-an increment of 49.7 million tonnes over the current year’s revised target of about 1052 million tonnes.

In terms of electrification of the network, 4556 km railway line was completed this fiscal, against the target of 4500 km, while the target of doubling the gauge was also surpassed with 2227 km, against 2000 km.

Train services will also start for Vaishno Devi shrine at Katra in Jammu and Kashmir.

Three new rail factories in Bihar, Uttar Pradesh and West Bengal have already been commissioned – a wheel plant at Chhapra, a coach factory in Rae Bareli and a diesel component factory at Dankuni, respectively.

Specially designed coaches for adverse weather conditions have been inducted for rail travel in Kashmir valley. Also corrosion-resistant and lighter wagons to carry extra pay-load and higher speed of up to 100 km/hr have been developed.

At far as safety is concerned, there are no unmanned level crossings left, even as induction-based cooking was introduced in the pantry cars to prevent fire and improved audio-video systems installed to warn road users of approaching trains.

Ranked among the world’s top five, the Indian railroad network ferries 23 million people and 2.65 million tonnes of goods daily from 7083 stations on 12000 passenger and 7000 freight trains over more than 64000 route km. It is also among the largest employers with an estimated 1.4 million people on its rolls.

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02.ga feb-2014

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