Starred Articles

GKCA Update
1st to 31st Jan
Starred Articles
01 No Cliffhanger for the US economy
Jan Corporate > USA
The American Taxpayer Relief Act of 2012, which includes a rare increase in taxes on the wealthiest households
in US, was approved by the US Congress. The tax rates would rise to 39.6 per cent from 35 per cent for
individual incomes more than $400,000 and couples more than $450,000, while tax deductions and credits
would start to be phased out on incomes as low as $250,000. This bipartisan budget deal will prevent the
world's largest economy from falling into another fiscal crisis.
Background:
A package of significant tax cuts, first enacted under President George W. Bush expired in December 2012. As
the marginal tax rate was reduced from 39.6 per cent to 35 per cent by these cuts, after these cuts expired tax
rates would have increased in January 2013.
The Budget Control Act of 2011, effective from January 2013, would automatically cut or “sequester” the
government spending if it would exceed the budget resolution.
This increase in taxes coupled with spending cuts in the budget would have resulted in reduction in the US
Budget deficit and would have pulled the nation dependent on financial stimulus into another official
recession. So the US Congress debated about the measures to make the deficit larger by reducing taxes or
increasing spending.
By signing the American Taxpayer Relief Act of 2012, the US has successfully avoided the conundrum. Although
the bill is passed on 1st January 2013, the passing of this bill is backdated to help the US to technically avoid
going over a "fiscal cliff”.
04 Kingfisher Airlines loses license to fly
Jan India > Aviation
The troubled Kingfisher Airlines has lost its permit to fly after a deadline to renew its suspendd license expired.
Directorate General of Civil Aviation Arun Mishra said Kingfisher Airlines has failed to provide additional details
on the funding of operations in reference to Kingfisher’s reinstatement plans submitted to the DGCA last
month. Recently, the troubled airline said it was in talks with Etihad Airways and other investors to take a stake
in it. The Vijay Mallya owned Kingfisher airlines has made losses for 5 years in a row and it is $1.4bn in debt
and has been unable to pay staff, airports, tax authorities and its lenders. Meanwhile, 17 member consortium
met in Bangalore to discuss the company’s turnaround plans amidst demands by the staff to sell assets and pay
them their dues.
06 Pre-Trial Proceedings to start for the Delhi Gang - Rape case
Jan India > Crime
A Delhi court today acted on the chargesheet filed by the Delhi Police on the Gang Rape case. Five of the
accused have been booked for murder, attempt to murder, gang rape, unnatural offences, causing hurt in
committing robbery, dacoity, dacoity with murder, destruction of evidence, common intention and dishonestly
receiving stolen property. Two of the accused, Pawan Gupta and Vinay Sharma expressed their wish to become
prosecution witnesses but the police said that they had doubts on the reliability of the accused.
GKCA Update
1st to 31st Jan
The sixth accused, who is a juvenile, will be tried before a Juvenile Justice Board. He will attain majority in 5
months. With older Juveniles getting away, there is a demand that the Juvenile Justice Act needs to be
amended.
As an answer to the demands from various quarters, the UPA government has decided to implement all the
recommendations of the Justice Malimath Committee and tighten laws on sexual assault in an attempt to make
the criminal justice system more efficient.
08 Hate Speech accused Akbaruddin Owaisi arrested
Jan India > Andhra Pradesh
The Andhra Pradesh Police have arrested hate speech accused Majlis-e-Ittehadul Muslimeen MLA Akbaruddin
Owaisi. The police have registered four cases against Owaisi, the MLA of Chandrayangutta constituency in
Hyderabad, on charges of promoting enmity between different groups and waging or attempting to wage war
or abetting waging of war against the government of India. Owaisi had allegedly delivered an inflammatory
speech on Dec 22 last year in Nirmal Town of Adilabad district against a particular religious community. He had
been remanded to a 14-day judicial custody by a magistrate court in Nirmal Town. Owaisi had previously been
accused on many occasions of delivering communal speeches against the Hindu community.
08 Arjun Munda recommends dissolution of Jharkhand State Assembly
Jan India > Jharkhand
Jharkhand Chief Minister Arjun Munda has recommended the dissolution of the state assembly to Jharkhand
Governor Syed Ahmed. The Shibu Soren led Jharkhand Mukti Morcha (JMM) met the governor and officially
withdrew support to the Bharatiya Janata Party. The Munda government has technically become a minority
after the JMM withdrew support. With JMM withdrawing support, the BJP-led NDA government has the
support of only 26 MLA’s in the 81 member assembly.
Background:
The political crisis started when JMM chief Shibu Soren wrote to the Chief Minister Arjun Munda on 25th
December asking him to hand over the Chief Minister’s post to JMM as part of a 28 month power sharing deal.
However, Munda denied in writing that any such deal had happened at the time of forming the government
and refused to step down stating that the government has to take a decision keeping the stability of the state in
mind. The BJP had firmly stated its support to Munda and dismissed any such claims of a power sharing deal.
08 Messi wins Player of the Year Award for the 4th consecutive time
Jan Sports > Soccer
Argentine football great Lionel Messi won the FIFA Balon d’or the FIFA Men Player of the year Award for the 4th
consecutive time. This came as an expected achievement for the 25 year old, who had an astounding year with
91 goals for Argentina and Barcelona in 2012. Messi beat Christiano Ronaldo of Spanish champion Real Madrid
and Barcelona teammate Andres Iniesta to win the trophy. Messi’s fourth award broke former records of
soccer legends Brazil’s Ronaldo and France’s Zinedine Zidane who had each won the FIFA Player of the Year
award thrice.
GKCA Update
1st to 31st Jan
09 Train fares to go up from January 21st midnight
Jan India > Railways
Railways Minister Mr. Pawan Kumar Bansal announced today that train fares will go up from January 21st,
Midnight. The increase ranges from 2 paise per kilometre for second class ordinary (suburban) trains to 10
paise per km for AC 1st class trains. Usually the hike in train fare is announced during the Railway Budget.
However the Railway Minister said that this was the need of the hour as fares have not been increased for a
decade and the railways had incurred a loss to the tune of 20000 crores in 2010-11. The fare hike is expected to
contribute 6000 crores to the railways.
09 Pakistani Troops behead and mutilate two Indian soldiers
Jan India > LOC
In a major disruption of the ceasefire agreement that has been in force since 2003, Pakistani troops entered
Indian territory, and beheaded an Indian soldier and mutilated his counterpart before killing him. India has
termed the incident ghastly, inhuman and unacceptable and asked the Pakistani government to immediately
investigate the matter. Indian Foreign Secretary Ranjan Mathai summoned Pakistan High Commissioner Salman
Bashir and made it clear that such events were unacceptable and Pakistan must uphold the sanctity of the Line
of Control. The attacks are seen as a clear attempt to disrupt diplomatic relations between the two countries
and an already slow moving peace process since the 2008 attacks in Mumbai.
10 Pakistan and India violate LOC norms
Jan Politics and Government > Indo-Pak Relations
In what is said to be the largest blow to Indo-Pak relations since the 2003 ceasefire, the last week has seen as
many as five soldiers losing their lives in cross-border firing.
It all started with the Indian Army accusing Pakistani troops for violating the ceasefire between the two
countries and mutilating the bodies of two jawans on December 8th 2012. One of the jawans, Lance Naik
Hemraj was beheaded. In reply to this, Pakistan accused India of killing one of its soldiers in a cross-border
attack. The Indian army has released a statement saying that it did open fire on Pakistani troops but it had not
crossed the border.
The Pakistan government had summoned Indian High Commissioner Sharat Sabharwal about the Indian attacks
on Pakistani troops, calling them ‘unacceptable and unprovoked’. On 11th January 2012, Pakistani troops fired
across the LoC at five posts in the Krishna Ghati and Sona Gali sectors of Jammu and Kashmir. The Indian army
said that this was a Pakistani attack whereas the Pakistani army says that it was a counter-attack.
Firing was also seen in Nangitikri and Krishnagati areas in Poonch district of J&K. On 14th January 2013, both
countries held a flag meeting at Chakan da Bagh in Poonch district along the Line of Control (LoC) in Kashmir.
The meeting which lasted thirty-five minutes, was the first on-ground contact between the two armies since
last week’s tension. Pakistan agreed to the meeting after much persistence from India for the last four days.
Meanwhile, Indian martyr Lance Naik Hemraj’s family went on a six day hunger strike which ended on 14th
January 2013 after being assured by political forces that justice will prevail.
In response to the entire episode, Indian External Affairs Minister Salman Khurshid has said that India “will
continue to make efforts to get to the bottom of the matter and that truth was a necessary ingredient of any
reconciliation.”
GKCA Update
1st to 31st Jan
11 Apple penetrates into Chinese markets
Jan Corporate > Apple
Chief Executive Officer of Apple, Tim Cook, has visited China twice in one year and has said that the Asian giant
will soon be taking over the United States of America as the largest market for Apple products in the world.
Currently China is the second-largest market for Apple products and the technology biggie sold more than two
million iPhone 5 handsets in just three days of it being launched in China, on 14th December 2012.
Cook has shown excitement in launching new products in China and has plans to launch a cheaper iPhone for
emerging markets in Asia.
11 Barack Obama, Hamid Karzai meet at White House
Jan Politics and Government > U.S. - Afghanistan
Afghanistan President Hamid Karzai arrived in the U.S. on 11th of January 2013. His day began in the White
House with President Barack Obama discussing post-war relations between the two countries. The U.S. has
certain commitments towards Afghanistan which it will look to fulfill. The discussion also covered the number
and nature of NATO troops to remain in Afghanistan.
The two hour meeting was followed by lunch and then a short press conference. President Barack Obama also
discussed with President Karzai a schedule to bring all 68,000 American troops back to their homeland and the
future needs of Afghanistan to meet its own security needs.
In the press conference Obama stated plans of an anti-terror operation to get to the root of the Taliban and
eliminate Al-Qaeda. Obama discussed troops of 3,000, 6,000 and 9,000 for various post-war operations. The
White House suggested that Obama was looking to fast-track operations so that zero Americans remain in
Afghanistan.
15 Inflation slows to 3-year low, RBI may cut rates
Jan Economy > Inflation
According to India’s Commerce and Industry Ministry, the country’s overall inflation has fallen to a three-year
low, based on monthly wholesale price index. Currently, the country’s inflation stands at 7.18% as of December
2012. This may lead to a drop in interest rates to support faltering growth.
The Ministry also said that good news was in store as inflation has been showing signs of moderation,
especially in the manufacturing sector. This comes as a relief from the more-or-less stubborn inflation rates in
the past months. The government has also revised the October inflation number from 7.455 to 7.32%.
On the downside, retail inflation went back to double digits, according to the nationwide consumer price index.
Meanwhile, the RBI has tightened monetary policy to keep a check on sticky inflation but the rates will be
eased when it reviews its policy on January 29.
15 2 year high for Sensex
Jan Economy > Macro economy
The decision of the Finance Ministry to fasten the economic reforms process by modifying the General AntiAvoidance Rules (GAAR) has had a positive effect on the Stock Market. The SENSEX and NIFTY, both rose to a 2
year high.
GKCA Update
1st to 31st Jan
Investors gained up to Rs 80,000 crore and were also pleased with relaxed inflation figures, which dropped to a
three-year low, that in turn raised chances of a cut in rates by RBI later this month.
Market experts and investors say that the tough decision to change the provisions of GAAR will also boost
foreign investment in India. Gautam Trivedi, MD & head of equities-India, Religare Capital Markets said that the
foreign investors are happy with the way the government of India is responding to their concerns.
The banking and finance sector saw company stocks soar, with HDFC up 1.9% at Rs 825 and ICICI Bank closing
1.7% higher at Rs 1,185.
IT stocks also soared as the sector’s stalwarts like Infosys and TCS performed very well in the first quarter
making high profit margins to gain bigger contracts. The Infosys stock gained 3.5% to add to its 17% gain on
11th January 2013 and close at Rs 2,807, while TCS was up 2.1% at Rs 1,334. The IT index on BSE was up 2.6%.
Infosys chief executive, S.D. Shibulal had something positive to say since June 2012, TCS said that it will surpass
Nasscom’s revenue forecast of 11 to 14 percent growth for the year end of 31st March.
15 Urjit Patel takes charge as RBI deputy governor
Jan Economy > RBI
The Reserve Bank of India has a new deputy governor in the form of Urjit Patel. Patel will be heading the
department of monetary policy which was earlier headed by Subir Gokarn.
Mr. Patel has been appointed as deputy governor for a period of three years, effective from 11th January 2013.
He will be joining the other three deputy governors namely K C Chakrabarty, Anand Sinha and Harun R. Khan.
Urjit Patel has a Ph.D. in economics from Yale University and an M. Phil from Oxford.Prior to his appointment as
the deputy governor of the Reserve Bank, Patel was adviser (energy & infrastructure), Boston Consulting
Group.
16 Pakistan SC orders arrest of Prime Minister Raja Pervez Ashraf
Jan Politics and Government > Pakistan
The Pakistan Supreme Court on Tuesday ordered the arrest of Prime Minister Raja Pervez Ashraf on grounds of
receiving bribes in Rental Power Projects (RPPs) as Federal Minister of Water and Power. This is the second case
of a Prime Minister losing office in less than a year after the exit of Yusuf Raza Gilani in June 2012. The Pakistan
Supreme Court had, in March 2012, declared all RPP contracts as illegal and ordered authorities to take steps
against those involved in clearing the contracts including Pervez Ashraf.
Meanwhile, accompanied by thousands of supporters, Pakistani-Canadian Sufi cleric Tahir-ul Qadri launched his
‘Million-Man Long March’ from Lahore to Islamabad on Sunday. He said the march would mark the protest of
the Pakistani people against corruption and the oppression of the poor by those in power. Early on Tuesday,
Qadri had demanded the dissolution of the National and State Assemblies. The Supreme Court’s recent order is
seen by many as an immediate reaction to Qadri’s demands. Soon after the Supreme Court issued the order,
Qadris’s supporters cheered and welcomed the decision.
17 Tahawwur Rana, convicted of aiding terrorist outfit LET, sentenced to 14
Jan years in prison
World > Crime
Tahawwur Rana, a 52 year old Pakistani-Canadian and accomplice of convicted terrorist David Headley was
sentenced to 14 years of prison by a US Court for providing material support to the 2008 Mumbai attack group
GKCA Update
1st to 31st Jan
LET and helping plan an aborted plot to behead staff at a Danish newspaper. He was, however, cleared of the
more serious charge of helping plot the Mumbai attacks which resulted in the loss of 160 lives.
Convicted terrorist David Headley was the government’s star witness in the trial. Pakistani-American David
Headley had earlier pleaded guilty of laying the groundwork for the Mumbai attacks and help plan the attack
on the Danish newspaper. During the trial, prosecutors had argued that Rana had allowed Headley to open
offices of his Chicago based immigration services in Mumbai which Headley used as a cover to survey sites and
gain access to newspaper offices for the 2008 Mumbai terrorist attacks.
17 DLF to sell wind energy business for 900 crore
Jan Corporate > DLF
India’s biggest real estate company DLF will sell its wind energy business to an unlisted firm, Bharat Light and
Power (BLP), owned and founded in 2010 by former General Electric President and CEO for India, Sri Lanka and
Bangladesh, Tejpreet Singh Chopra. DLF plans to first sell windmills that can generate up to 200 megawatts of
power. Assets that can generate another 28 MW of power will be sold later. The latest sale follows a string of
disposals done by the real estate giant in recent months to reduce its debt pile acquired in the past decade to
acquire large tracts of land, build hotels and develop real estates across the country. Last month, DLF
announced a deal to sell its stake in luxury hotel group Aman Resorts. Last year, it sold another hotel firm in
Kolkata and also a large land parcel in Mumbai.
Background:
DLF, founded by billionaire Kushal Pal Singh, has a land bank of 10,255 acres, the biggest in the real estate
sector. At its peak, its debt pile stood at Rs 23,000 crore. It hopes to end March 2013 with an overall debt level
of 18,000 crore.
22 Foreign Investment Promotion Board (FIPB) clears IKEA’s investment
Jan proposal
Corporate > IKEA
The Foreign Investment Promotion Board has approved Swedish Home Furnishings Company IKEA’s Rs. 10,500
crore investment proposal which the Board had earlier rejected in November 2012. This approval allows the
company to set up retail stores along with its popular cafes in stores and also increase its product categories in
India from 15 to 18. The Cabinet Committee on Economic Affairs will take the final call on the endorsement as
the FIPB can endorse investments upto Rs. 1,200 crore only.
22 Government hikes import duty on Gold
Jan Economy > Gold
Import duty on gold and platinum will now be 6% against 4% earlier. The government has also directed gold
exchange –traded funds to park a part of their gold holdings with banks. It has also eased the terms of gold
deposit schemes of banks to encourage individuals to deposit some of their idle gold to partially meet the
demand through domestic sources. This move comes after India’s Current Account Deficit (CAD) widened to a
record 5.4% of gross domestic product in the first half of the current fiscal as gold and crude oil imports
remained high.
GKCA Update
1st to 31st Jan
22 Former Haryana CM Om Prakash Chautala and son sentenced to 10 years in
Jan Jail
Politics and Government > Teacher Recruitment Scam
Former five-time Haryana CM Om Prakash Chautala and his son Ajay Chautala were sentenced to 10 years of
rigorous imprisonment by a special CBI Court for illegal recruitment of junior basic trained (JBT) teachers. On
January 16, the court had held Chautala, his son and 53 others guilty of illegally recruiting 3,206 junior basic
trained teachers in Haryana in 2000. In protest against the judgement, over 600 supporters of Indian National
Lok Dal (INLD) chief Chautala clashed violently with the police outside the court.
22 Rahul Gandhi appointed Congress Vice-President, Rajnath Singh to replace
Gadkari as BJP chief
Jan Politics and Government >Political Party
The Congress on 20 January appointed Rahul Gandhi as the vice-president of the Congress party, a position
that elevated him to the number two position in the party after mother Sonia Gandhi. The decision was taken
at the recently concluded two-day Chintan Shivir intended to create an agenda for 2014.
In another development, BJP party President Nitin Gadkari resigned after protests following Income Tax raids
on businesses that had invested in Purti group founded by him. Former BJP chief and UP leader Rajnath Singh
has been appointed as the new party president.
24 Developing nations on top in 2012 FDI index
Jan Economy > FDI
According to the United Nations Trade and Investment Think Tank (UNCTAD), developing nations have, for the
first time, attracted more foreign direct investment than the industrialized nations, where FDI flows have
dipped 18 percent in the last year. Weak investments in the crisis-hit developed economies of the United
States, European Nations and Japan have been largely responsible for the USD 300 billion-decline in global FDI
last year. However, developing countries have also registered a dip in FDI inflows. Asia, which raked in 59 per
cent of all FDI to developing countries, saw its inflow drop 9.5 per cent, with China, the world's second-largest
recipient of such investments, registering a 3.4-per cent drop in 2012 FDI inflows dropped despite the fact that
the world economy grew 2.3 percent in 2012.
28 Toyota regains position as world’s biggest car maker
Jan Corporate > Toyota
Japanese carmaker Toyota has regained its position as the world’s biggest car maker after the company posted
22% increase in sales from 2011. Toyota sold 9.75 million vehicles in 2012, more than General Motor’s sales of
9.29 million vehicles. In 2011, General Motors held the top spot. Toyota’s sales in 2011 had been hit by natural
disasters in Japan and Thailand which had slowed down production at its factories. Toyota’s rivals such as
Nissan Motor and Honda Motor have also reported record number for vehicle sales in 2012. The decline in the
Yen against the dollar since last November, might have aided Toyota which relies heavily on overseas sales.
29 RBI cuts REPO rates by 25 basis points, reduces the Cash Reserve Ratio
Jan Economy > Macro economy
The Reserve Bank of India cut the short-time lending rate, also called REPO by 0.25 percent to 7.75 percent for
the first time in the past nine months to support the slow economic growth. In another unexpected move, the
GKCA Update
1st to 31st Jan
RBI has reduced the CRR, the share of deposit banks must keep with the RBI, by 25 bps to 4 percent which will
release 18,000 crore additional liquidity into the system. The cut in REPO rates is expected to reduce the cost of
borrowing for individuals and the CRR reduction would improve the availability of funds.
30 Philips to sell home entertainment business
Jan Corporate > Philips
Amsterdam based Philips Electronics has decided to quit its traditional business of home entertainment by
selling its audio and video businesses to Japan based Funai Electronics Company for 150 million Euros, a move
intended to focus more on its profitable home appliances and healthcare businesses. Philips had already hived
off its television business last year by setting up a joint venture with Hong Kong-based TPV, after facing steepcompetition from low-cost Asian manufacturers including Samsung and LG. With most people turning to online
download of movies, games and music, Philips decided to get out of home entertainment even though it was
profitable last year. In future, the consumer division will focus on appliances such as shavers and electric
toothbrushes as well as toasters, juicers and coffee makers.
30 Etihad Airways to buy 24% stake in Jet
Jan Corporate > Aviation
Abu Dhabi based airline Etihad will pick up 24% stake in Naresh Goyal owned Jet Airways for about $330
million. The 24% stake is to be valued at Rs. 7,652 crore, a substantial premium to Jet’s market capitalization of
almost Rs. 5,100 crore. FDI in the aviation sector has paved the way for Indian carriers to get both funds and
expertise from foreign airlines. Senior officials from Etihad will be meeting the Commerce and Aviation
ministers to apprise them of the decision.
Background:
Naresh Goyal, a non-resident Indian, owns 80% stake in Jet, with 79.9% through his Isle of Man-based company
Tailwinds. Previously, Goyal had to buy back 40% stake in Jet Airways which was held equally by Gulf Air and
Kuwait Airlines when FDI by foreign airlines was disallowed in 1996.
Awards
26 Padma Vibhushan and Padma Bhushan awards announced
Jan Padma Awards
The government came out with a list of 108 Padma awardees that included actors, sportspersons and other
distinguished personalities from the field of art, science and literature. Noted physicist Yash Pal, space scientist
Roddam Narasimha, renowned sculptor Raghunath Mohapatra and painter S. Haider Raza were chosen for this
year’s Padma Vibhushan, India’s second highest civilian award after the Bharat Ratna. 24 people were chosen
for the Padma Bhushan which included names like Rahul Dravid, Rajesh Khanna and Sridevi. Among the 80
Padma Shri awardees are B. Jayashree (art) from Karnataka, film Director of Sholay fame Ramesh Sippy, noted
Photo journalist Pablo Bartholomew, and fashion designer Ritu Kumar. Olympians Mary Kom, Yogeshwar Dutt
and Vijay Kumar also featured among the Padma awardees.
Nobody was named for the Bharat Ratna for this year too. The last awardee was the late Pandit Bhimsen Joshi
in 2008.
GKCA Update
1st to 31st Jan
Bank Specific
24 ING exits Life Insurance in India, sells entire stake
Jan ING
ING has sold its entire 26% stake in ING Vysya Life Insurance to its joint venture partner Exide Industries Ltd. in
a deal that valued the company at 1,100 crore. Although ING held only the maximum permissible stake of 26%,
it had controlled the life insurance operations for over a decade whereas the Indian shareholding changed
several hands. ING said it was exiting India as part of its plans to divest its insurance and investment
management business in Asia. However the company clarified that this decision does not impact ING Vysya
Bank in which ING has a 44% stake nor its fund-management businesses in the country. Exide is now looking for
a foreign insurer who will buy the 26% stake. ING is the fourth insurer to exit India after the opening up of the
insurance sector.
Background:
The ING Group is a Dutch multinational banking and financial services corporation headquartered in
Amsterdam. Its primary businesses are retail banking, direct banking, commercial banking, investment banking,
asset management, and insurance services.
Automotive battery manufacturer Exide is a Rajan Raheja group company and has a market capitalization of
over Rs 10,000 crore. The company got into the life insurance business by buying out GMR group.
24 Banks step up hiring at IIMs, offer 1-crore plus salaries
Jan Jobs
Banks seem to be the top hirers at IIMs this placement season and have offered at least three 1-crore salary
packages so far. Deutsche Bank has given two such offers at IIM-Ahmedabad for its London office and Morgan
Stanley has offered a 1-crore package to a student at IIM-Calcutta for a stint abroad. Most global and Indian
banks are hiring more than last year and are offering pay packages which are 10-15% higher. Leading banks
such as Standard Chartered, HSBC, HDFC and Axis Bank are offering salaries in the range of 15-18 lakhs. The
top five consulting firms, including BCG and McKinsey, are also likely to hire more than 200 people this year.
However, e-commerce companies, which had been the largest recruiters in campuses last year, are hiring less
this year.
Corporate
03 Mid-Sized Technology Outsourcing Companies to cut down on pay hikes and
campus hiring in 2013
Jan IT Outsourcing
Slowdown in the US and European markets has forced mid-sized technology outsourcing companies to decide
on lower pay hikes and cut down on campus hiring this year. Since the financial crisis of 2008, the $100 billion
Indian IT industry has been facing slower growth and lower revenues. Software services exporters such as
Infinite Computer Solutions, Mastek, Mahindra Satyam and Infotech Enterprises said the pay hikes could be as
low as 5% this year. Also, IT hiring figures of close to 1.5 lakh students every year, might go down drastically.
GKCA Update
1st to 31st Jan
In a similar development, India’s 2nd largest software company, Infosys has started to lay off underperforming
employees in an attempt to reduce operational costs and focus on a more aggressive sales strategy. Infosys is
asking about 5000 of the 1.5 lakh workforce to leave straightaway.
04 US Federal Trade Commission dismisses allegations of unfair practices by
Google
Jan Google
In an investigation spanning 19 months, the US Federal Trade Commission (FTC) declared that they didn’t find
enough evidence to suggest that Google unfairly favors its own services in search results. The judgement came
as a blow to Microsoft Corp. and other Google rivals who had complained against the search major’s business
practices. However, Google will sign an agreement requiring the company to charge "reasonable" prices to
license hundreds of patents for rival mobile devices such as Apple Inc.’s iPhone, Research in Motion Ltd.’s
BlackBerry and smartphones running on a Microsoft Corp's Windows software. Upon request, Google will also
exclude snippets from other websites in its summaries of key information.
Background:
Google gained ownership of the patents when it acquired Motorola Mobility Holdings at $ 12.4 billion in 2012.
07 Bank of America to pay billions as mortgage loans to Fannie Mae
Jan US Mortgage Loans
Bank of America will pay US Mortgage Agency Fannie Mae $ 10.3 bn as a settlement of claims related to
residential home loans and $1.3 bn as compensation. Fannie Mae had held bank of America responsible for the
losses as it complained that the Bank had sold all its toxic debts. In a related development, 10 big mortgage
providers which include Bank of America, Citigroup, JP Morgan and Wells Fargo, will provide $8.5 bn as
compensation to individual owners for mistakes in repossessing homes. In October, 2012, the US Government
had sued Bank of America, JP Morgan Chase and Wells Fargo for alleged mortgage fraud.
Background:
Fannie Mae and Freddie Mac are two US government Mortgage agencies. Both these agencies buy mortgages
from banks providing them with more funds to lend out. The US Mortgage market collapsed in 2008 after the
housing bubble burst. Both Fannie and Freddie suffered $30 bn because of their investments in the subprime
mortgages. They were later bailed out by the US government.
14 Tata Motors aims to become No. 2 carmaker
Motors
Jan Tata
Four month old managing director of Tata Motors, Karl Slym, is a man on a mission. He has initiated a major
restructuring program which looks to make Tata Motors, which is India’s largest automaker by revenue, the
world’s second-largest car maker, by 2020.
One of these restructuring elements including a common vision statement for the two types of cars –
commercial cars and passenger cars. The vision will be called ‘One Team One Vision’. Also, the company has
appointed the man behind the Tata Nano and Tata Ace concept, Mr, Girish Wagh to head the product planning
team.
GKCA Update
1st to 31st Jan
Tata Motors further plans to improve the co-ordination between its four engineering centers viz. India, UK, Italy
and South Korea and also improve backend services like designing, engineering and sourcing. It also aims at
repositioning its ‘micro car’ and creating a number of two -seater in the vehicle industry.
16 Bharti Airtel India CEO, Sanjay Kapoor steps down, Gopal Vittal takes his
Jan position
Bharti Airtel
Sanjay Kapoor, CEO of India and South Asia, Bharti Airtel, has decided to step down from his position after a
stint of 15 years. Bharti started an organizational restructuring after Kapoor's exit, placing Gopal Vittal as the
new CEO (India). Gopal Vittal had rejoined the company in April 2012 as group director (special projects).
Kapoor will continue to be associated with the company as a director on board of Indus Towers and Bharti
Global and will be available for a smooth transitional process until March 31st, 2013.
18 Reebok India plans revival as Adidas appoints new MD
Jan Adidas
Reebok India is looking at plans to revive operations throughout the country. The German sportswear major
suffered a severe setback last year in a 870-crore scam that made headlines. Erick Haskell has been named the
India MD of Adidas AG which owns Reebok. Haskell, who was COO of Adidas China before being transferred to
India, said that his immediate priority is to put forth a growth plan for Reebok India and to introduce an
aggressive marketing campaign in the coming months. Haskell also said that Reebok is contemplating opening
its own retail outlets in India as India currently allows 100% foreign investment in single brand retailing. The
fraud, last year, had prompted Adidas to announce closure of two-thirds of Reebok stores and overhaul its
entire Indian business model. Haskell further said that no more stores will be closed and its previous 800-odd
franchisees have agreed to switch to a new model of business.
29 Manchester United becomes first football team to be valued at over $ 3
billion
Jan Manchester United
English Premier League soccer club Manchester United became the world’s first professional sports team to be
valued at over $3 billion, according to a Forbes magazine report. Manchester United is listed on the New York
Stock Exchange. New sponsorship deals and lucrative payouts in the Champions League and the English
Premier League seem to have contributed to the surge in United’s shares. 19 times EPL champion Manchester
is ahead of the world's second-most valuable sports team, the National Football League's Dallas Cowboys
which is valued at $2.1 billion. United, who claim to have 659 million followers worldwide, are owned by the
American Glazer family who retained a tight grip on the club after the shares of the club were floated on the
NYSE last year.
29 Samsung Buys US medical imaging firm NeuroLogica
Jan Samsung
Samsung Electronics has brought a full stake in a Massachusetts-based medical imaging firm NeuroLogica as it
wants to expand in the medical sector. NeuroLogica makes medical devices including CT scanners. Samsung
GKCA Update
1st to 31st Jan
plans to leverage its global brand name in consumer electronics, IT and communications to grow in the medical
imaging business.
Background:
Samsung Electronics, the world's top maker of smartphones, memory chips and flat-screen TVs, is the flagship
unit of the Samsung group. Samsung, in 2010, declared that it would spend $20 billion over the following 10
years on five "new growth" areas including light-emitting diode technology, medical devices, biotech drugs,
electric-vehicle batteries and solar panels.
31 Research in Motion changes name to Blackberry, launches new mobile
computing platform
Jan Blackberry
Research in Motion, the makers of Blackberry smartphones have changed their corporate name to Blackberry
in a move to leverage on the global brand name of its Blackberry mobile devices and revive its smartphone
business. The move also coincides with the launch of a new mobile computing platform BB 10 and the launch
of two revamped smartphones, one in the touch format known as BlackBerry Z 10 and another in the physical
keyboard format known as Blackberry Q 10. Blackberry has been facing tough competition in recent times from
Apple Inc.’s IPhone and Samsung’s Galaxy devices in the smartphone market. The name change is seen as a
crucial marketing move for the company that has undergone a management change and a major restructuring
in recent times.
Economy
04 Following on US footsteps, India contemplates higher taxes for the
superrich
Jan Tax
Prominent economists around the country urged the government to bring inflation down to 4-5% at the
earliest. Key economic advisor to the Prime Minister Mr. C Rangarajan had suggested that the government
should impose a marginal tax rate higher than the current 30% on individuals with substantially higher income.
His suggestion came a day after the US Congress approved a rare tax increase on the nation’s wealthiest, the
first time in two decades. Also, there were suggestions for higher investment in health and education sector,
higher capital expenditure on agriculture and also for expanding the Tax base so that that the government’s
revenue could increase significantly.
04 Gold Imports not responsible for growing Current Account Deficit
Jan Gold
The widely perceived notion that rising Gold imports were responsible for the worsening of the Current
Account Deficit had much less to do in reality with the actual issue. The CAD worsened to a record $22.4 billion
or 5.4% of the GDP in July-September last year. The overall merchandise trade deficit attributable to the
growing difference between Oil imports and exports caused the CAD to widen to such alarming figures.
However, the government increased customs duty twice to curb the import of Gold. Since the increase, gold
imports have come down significantly as compared to last year but the CAD has not decreased much. To
GKCA Update
1st to 31st Jan
address the issue, ideally the government should increase exports significantly and cut down on unnecessary
imports of some finished goods.
12 Nobel laureate warns India about FDI leading to instability
Jan FDI
Nobel laureate and American economist, Joseph Stiglitz said that the current craze for FDI in India is not going
to be productive. He has said that FDI in multi-brand retail would lead to instability as MNCs adopt corrupt and
exploitative ways to gain monopoly in competitive markets.
Mr. Stiglitz gave an example of Wal-Mart in Mexico where the retail giant was offering bribes to officials at
various levels to gain monopoly. He said that the same will happen in India and the labor force will be the worst
affected. He also denounced the “myth” of benefits of FDI in the agricultural sector – farmers, producers and
consumers.
18 Chinese economy grows 7.8% in Q4
Jan China
The Chinese Economy grew 7.8% in Q4, up from 7.4% in Q3. This is the slowest growth in 13 years. It is down
from 9.3 per cent in 2011 and 10.4 per cent in 2010. In 2012, the gross domestic product reached 51.93 trillion
yuan (USD 8.28 trillion). Amid apprehensions whether the GDP would miss the official target, it picked up in the
last three months of the year mainly driven by Christmas and New Year sales. Analysts said that government
stimulus measures introduced since early 2012 have helped to avert further slowdown.
18 Oil Companies’ Shares gain as Sensex crosses 20,000 mark
Jan Sensex
The government’s bold economic reforms measure of hiking diesel price seemed to bear fruits as the shares of
major oil companies such as RIL and ONGC gained and the Sensex crossed the 20,000 mark. The government
had, on 17th January, partially deregulated diesel price allowing a hike of 40-50 paise a litre per month for
retail customers and nearly Rs 11 for bulk consumers. The BSE benchmark Sensex on Friday rose 123.75 points,
or 0.62 per cent, to 20,087 with stocks of oil and gas, auto, PSUs, metal and banking sectors extending support.
Shares of ONGC were trading at Rs 348.10 apiece, up 10.68 per cent in the early morning trade, RIL rose
897.30, up 7.65 per cent.
21 Indian IT Companies eye software outsourcing deals coming up for renewal
worth $50 billion in 2013
Jan Information Technology
Software Outsourcing Deals worth $ 50 billion (2.7 lakh crore), worth almost half the size of the Indian IT
Industry, are coming up for renewal in 2013. There is expected to be fierce competition among companies in
the form of aggressive discounting. HCL Technologies, which recently won a contract from Deutsche Bank
worth several millions dollars, could get it only because of aggressive discounting. Some of the long-term
contracts coming up for renewal in 2013 are from Procter & Gamble, Bank of America, American Express and
Unilever, first signed during 2002-03.
The top four Indian IT companies Tata Consultancy Services (TCS), Infosys, Wipro and HCL Technologies have
posted better growth figures. However, it doesn’t mean that the period of slow growth is entirely coming to an
GKCA Update
1st to 31st Jan
end. India’s software exports are expected to barely grow by double digits as companies cope with
fundamental technological and business model transformations.
Environment
weather worldwide
12 Erratic
Weather Patterns
Jan 2012 saw floods, droughts, deluges, storms and hurricanes in different parts of the world. People everywhere
have become desensitized to these natural calamities and have accepted these erratic weather patterns as the
new normal.
While China is experiencing the coldest winter in thirty years, Brazil is going through a heat spell. Parts of
Russia are freezing with -50 degrees Celsius. Australia has seen bush fires in the previous year and Pakistan has
seen devastating floods. The Middle East and the United States of America are also experiencing record
breaking heat. The U.K. saw floods on three different occasions in 2012.
These are just a few examples of the unpredictable weather conditions that we are facing. Forecasters and
experts say that such uncertainty in climate may be seen throughout 2013 as well.
India
14 World’s largest religious gathering, Kumbh Mela, begins
Mela
Jan Kumbh
The Maha Kumbh Mela, which is the world’s largest religious gathering, started off on 14th January 2013 in
Allahabad. Devotees flocked in large numbers to take a holy dip in the Ganges.
The festival will last for fifty-five days and is expected to have over one crore devotees participating in it.
The next festival will take place at Ujjain, Madhya Pradesh in the year 2016.
31 Government to toughen anti-rape laws, provide for life imprisonment
Jan Legal
Prime Minister Manmohan Singh said that the government would act on the recommendations of the Justice J
S Verma Committee and toughen laws dealing with crimes against women by providing for life imprisonment
for rape-murder and addition of new offences such as disrobing of women, voyeurism, stalking and trafficking.
The government also agreed to the committee’s recommendations to reject death penalty and chemical
castration as punishment for rapists.
Meanwhile, the Supreme Court agreed to look into the demand for tighter laws for juveniles based on the
nature of the crime committed by them.
GKCA Update
1st to 31st Jan
Others
03 Legendary Violinist M S Gopalkrishnan passes away
Jan Arts
Violin maestro Padmabhushan M.S. Gopalkrishnan passed away after a brief illness. He was 82. MSG, as he is
fondly referred to in the business circles, started performing at the age of 8. He has since then went on to
perform with stalwarts before becoming an expert himself on Hindustani and Carnatic systems of classical
music. His amazing quality of interpreting an artist’s musical expressions and complementing it with his unique
sensitivity earned him the Padma Bhushan, the Padma Shri and the ‘Sangita Kalanidhi’ title conferred by the
Music Academy, Chennai. He is survived by his wife, two daughters and a son.
10 Top ten with 100 percentiles at CAT 2012
2012
Jan CAT
Engineers emerged as toppers yet again of the Common Admission Test 2012, with nine engineers and two
Indian Institute of Technology-Bombay graduates in top ten students who scored 100 percentile.
The results for the 1.9 lakh candidates who took the test were declared on 9th January, and it revealed that
Mumbai fared better than other metros. Out of nearly 17,000 Mumbai candidates in 2012, 180 scored more
than 99 percentile ahead of Delhi's 168 out of 21,224 candidates and Bangalore's 157 out of 19,553 candidates.
About 19 candidates have scored in the 99.99 percentile this year and around 1,895 candidates scored in
between 99 and 100 percentiles.
Politics & Government
22 Barack Obama begins 2nd term as US President, pledges to end war
Jan U.S.
Barack Obama began his 2nd term at the White House after his re-election and swearing in as US President for
4 more years. In his inaugural address, Obama pledged to focus more on internal social, political and economic
dynamics and involve in less confrontation with the world. He was sworn in for a second term by Chief Justice
John Roberts in a grand ceremony watched by more than 600,000 people.
31 Anna renames India Against Corruption as Jantantra Morcha
Jan Anna Hazare
Anna Hazare declared that India Against Corruption (IAC) would henceforth be called as Jantantra Morcha.
Hazare stressed on the importance of civil society participation in the legislation process and said that the
Morcha will mobilize people on a host of issues with a demand for effective legislation to strengthen the
democratic process.
GKCA Update
1st to 31st Jan
Science and Technology
04 30th Birthday of the Internet
Jan Internet
One of the greatest inventions of our times, the internet, turned 30 on the 4th of January. On the 1st of
January, 1983, the US Department of Defence commissioned Arpanet Networks, replaced all previous
networking systems and fully switched to the use of the Internet Protocol Suite (IPS) communications system.
The new system was designed to overcome the failures associated with the previous programme. The internet,
has since then, gone on to change the way millions work across the globe.
26 India successfully test fires medium range underwater ballistic missile
Jan Nuclear Missile
India today successfully test fired a medium range nuclear capable K-5 ballistic missile from an underwater
platform in Bay of Bengal. With this achievement, India has successfully completed the nuclear triad which will
give it the capacity to successfully fire nuclear- tipped missiles from land, air and sea. The missile has been
developed by the Hyderabad laboratory of the Defence Research and Development Organisation and is part of
the Indian Strategic Forces’ underwater platforms. U.S., China, Russia and France are the only other nations
who have an underwater nuclear-capable ballistic missile.
Sports
06 Michael Hussey retires from Test Cricket
Jan Cricket
Michael Hussey, fondly nicknamed Mr.Cricket because of his spectacular performances on the field, bid adieu
to his Test Cricket career on 6th January, 2013. The Australian great announced his retirement on a winning
note after Australia beat Sri Lanka in a 3-0 series whitewash. Hussey, who is 37 years old had an illustrious
career and had been the man behind many of Australia’s wins. Hussey scored 6,235 runs at an average of 51.52
in 79 Tests.
18 Lance Armstrong admits to doping
Armstrong
Jan Lance
Disgraced former cycling champion Lance Armstrong admitted to doping, in the first part of an elaborate twopart interview with Chat Show host Oprah Winfrey on her Own Network. Armstrong revealed that he had taken
performance enhancing drugs that put him to the top of the Tour de France seven consecutive times. Earlier, he
had been served with a lifetime ban from participating at all sanctioned events. World Anti-Doping Agency
director-general David Howman said that Armstrong could provide information that might get his ban reduced
to 8 years. Armstrong had returned to triathlons, where he begun his professional career as a teenager, after
retiring from cycling in 2011 and had since then expressed his desire to make a comeback.
GKCA Update
1st to 31st Jan
27 Novak Djokovic wins Australian Open for record third consecutive time
Jan Australian Open
World Tennis No. 1 Novak Djokovic became the first person to win the Australian Open for the third
consecutive time in the 45-year professional era. Djokovic defeated Andy Murray in a final that lasted 3 hours
40 minutes. It is Djokovic’s 4th Australian Open title joining Roger Federer and Andre Agassi, who had each won
the Australian Open title 4 times.
29 Mumbai win 40th Ranji Trophy title
Jan Ranji Trophy
Mumbai defeated Saurashtra by an innings and 125 runs, in less than 3 days to win the Ranji Trophy title at the
Wankhede stadium. Mumbai’s pace attack headed by Ajit Agarkar and Dhawal Kulkarni helped the hosts defeat
Saurashtra who were playing their first Ranji Trophy final. Though Mumbai were restricted to 355, Saurashtra
could only manage 82 in 36.3 overs. Mumbai have reached the Ranji Trophy final 44 times. They have won the
trophy a record 40 times and finished runners-up on 4 occasions.
World
17 Air India to ground six Dreamliners over safety concerns
787
Jan Boeing
On the lines of US Airline Regulator FAA, the Directorate General of Civil Aviation (DGCA) has ordered Air India
to ground all six Boeing 787’s, known as Dreamliners, over rising concerns on the safety standards of the
batteries used in the aircraft. The issue surfaced when All Nippon Airways (ANA) and Japan Airlines (JAL), which
are among the biggest customers of the Boeing 787, decided to ground their entire fleet. This was because
ANA reported that a snag in the battery triggered a cockpit error message that forced the planes to land in
Southwestern Japan. The DGCA directive might prove to be a hurdle in Air India’s revival plans as it was relying
heavily on Boeing 787s for its return to profitability.
The Dreamliner is the first commercial airliner to use Lithium-ion batteries so extensively. Investigations are on
to find out the error. Lithium-ion batteries are notorious for overheating and have caused major issues for auto,
computer and cell phone manufacturers.
GKCA Update
1st to 28th Feb
Starred Articles
28 India’s 82nd Union Budget announced
Feb India > Union Budget
Finance Minister Mr. P. Chidambaram presented India’s 82nd Union Budget on the 28th Of February. The total
budget expenditure for 2013-14 is seen at 16.65 lakh crore rupees. Out of this, non-planned expenditure is
estimated at Rs. 11.1 lakh crore whereas planned expenditure is Rs. 5.5 lakh crore.
Highlights of the Union Budget 2013-14:
No change in basic tax slabs. Surcharge of 10 percent on those with a taxable income of over Rs. 1
crore. Surcharge on corporates with income over Rs. 10 crore raised to 10 percent from 5 percent. A
tax credit of Rs. 2000 to every person with total income in the tax bracket of Rs. 2 lakhs to Rs. 5 lakhs
Fiscal deficit for FY 2013 seen at 5.2 percent and for FY 2014 at 4.8 percent
Additional deduction of interest up to Rs 1 lakh for a person taking first home loan up to Rs 25 lakh
from 1st April, 2013 to 31st march, 2014
Foreign Portfolio Investment in excess of 10 percent will be considered as a Foreign Direct Investment.
The entry rules for Foreign Institutional Investors (FIIs) will be eased further
Government will borrow Rs. 6.3 lakh crore from the market
The excise duty on mobile phones priced over Rs. 2000 will be hiked to 6 percent
Rs. 1000 crore Nirbhaya Fund announced for the welfare of women.
Duty free limit for Gold raised to Rs. 50,000 in case of male passengers and Rs. 1, 00,000 in case of
female passengers.
10,000 crores set apart for expenditure likely under the Food Security Bill
Rs. 3511 crore allocated to Minority Affairs Ministry
Key Budget proposals across various sectors:
Auto:
1) Excise Duty on SUVs hiked from 27% to 30%
2) Customs Duty on Luxury Vehicles hiked to 100 %
3) Higher allocation to JNNURM leading to additional demand of 10,000 buses augurs well for all
commercial vehicle manufacturers
FMCG:
1) Excise Duty on cigarettes increased by 18%
2) Tax on royalty increased from 10% to 25%
Oil and Gas:
1) Import Duty on crude-oil might be re-imposed
2) Removal of 5% customs duty on LNG and Natural Gas
Banking:
1) Rs. 14,000 crore capital infusion into Public Sector banks by 2013-14
2) PSU Banks to have ATMs at all their branches by 2013-14
3) Reduction in STT. Introduction of commodity transaction tax on non-agri products
Infrastructure:
1) Constitution of a regulatory authority for road sector
2) 3000 km of road projects to be awarded in first 6 months of FY 14
3) Infrastructure Development Funds (IDFs) to provide long-term low-cost debt
GKCA Update
1st to 28th Feb
4) Two new ports to be set up in West Bengal and Andhra Pradesh to add 100 million tonnes handling
capacity
5) Tax-free infrastructure bonds of Rs.50,000 crore to be issued
6) Textile Ministry and Handloom Sector to be allocated Rs. 50 crore and Rs. 96 crore respectively
7) Incentive allowance of 15 percent over and above permitted depreciation to those investing over
Rs.100 crore in infrastructure projects
8) Seven new cities identified along Delhi-Mumbai Industrial Corridor
Healthcare:
1) Rs. 37,333 crore allocated for health and family welfare in 2013-14
2) Royalty / technical fees paid to NRIs increased to 25 percent
Agriculture:
1) Rs.27,049 crore allocation to the Agriculture Ministry in 2013-14
2) Target of Rs. 7 lakh crore fixed for agriculture credit for 2013-14 compared to Rs. 5.75 lakh crore in the
current year.
3) Eastern Indian states to get Rs. 1,000 crore allocation for improving agricultural production
Costlier
Mobile Phones
Cigarettes
Set Top Boxes
MP3 Players
Silk
marble
Cheaper
Diamonds
Leather goods
Readymade garments
Imported jewellery
Handmade carpets
Electrical plants
26 Railway Budget reveals Rs.63, 363 crore Annual Plan for Railways in 2013-14
Feb India > Railway Budget
Railway Minister Pawan Kumar Bansal presented the railway budget on Tuesday, 26th Feb and announced that
the annual plan for Railways in 2013-14 financial year is proposed at Rs.63, 363 crore. The amount of money
for doubling of tracks, safety, and passenger and staff welfare has also been increased significantly from about
Rs 11,410 crore in 2012-13 to Rs 13,220 crore for 2013-14, an increase of 16 per cent. The number of
passengers is expected to increase by 5.2 per cent and as such the freight earning target has been increased by
9 per cent to Rs 93,554 crore.
Financing sources of the annual Railways Plan for 2013-14:
Gross Budgetary
Support (GBS)
Road Safety Fund
Internal Resources
Market Borrowings
Public-Private
Partnerships
Rs. 26,000 crore
Rs. 2,000 crore
Rs. 14,260 crore
Rs. 15,103 crore
Rs. 6000 crore
Highlights of the budget:
Financial:
No increase in passenger fares - but reserved passengers to pay more
Railways will absorb Rs. 850 crore on account of no hike in passenger fare
Railways hopes to end 2013-14 with a balance of Rs. 12,506 crore
Rs. 3,000 crore loan from Finance Ministry re-paid with interest by Railways this financial year
5 per cent average increase in freight
GKCA Update
1st to 28th Feb
Infrastructural:
26 new passenger trains and 67 express trains to be launched along with 9 Electric Multiple Unit (EMU)
trains
500-km new lines to be completed in 2013-14
New coach manufacturing and maintenance facilities to be set up in various places including Rae
Bareli, Bhilwara, Sonepat, Kalahandi, Kolar, Palakkad and Pratapgarh
26 new passenger trains and 67 express trains to be launched along with 9 Electric Multiple Unit (EMU)
trains
500-km new lines to be completed in 2013-14
New coach manufacturing and maintenance facilities to be set up in various places including Rae
Bareli, Bhilwara, Sonepat, Kalahandi, Kolar, Palakkad and Pratapgarh
Induction of e-ticketing through mobile phones, SMS alerts to passengers
New e-ticketing system to support 7200 users per minute
Free wi-fi facilities in select trains. 60 more 'adarsh' stations
Target of Rs. 4,000 crore for railway production units in 2014
Trying to connect Manipur through railways
Safety measures including new coaches with anti-climb features to be brought in
More ladies specials in metros and a helpline number to be implemented
Labs to test food provided in trains. ISO certification for all rail kitchens
Rs. 100 crore to be spent to augment facilities at Delhi, New Delhi and Nizamuddin railway stations
Hiring:
Seek to fill 1.52 lakh vacancies in railways this year. 47,000 vacancies for weaker sections and
physically challenged to be filled up soon
Impact:
With increase in freight rates, that would be linked with the diesel price movements, the prices of
those products which use the railways for transportation purposes might go up.
The stock market has not reacted positively to the Railway Budget. Attainment of the revenue targets
might be difficult given that it is based more on higher traffic on both passenger and freight, which is
based largely on the state of the economy.
Railway’s network expansion plans are also not in sync with the need of the hour. It has propsed only
500 km of new lines, and 450 km of converting to broad gauge, both of which are less than that of last
year.
BJP has termed the budget as “Rae Bareilly” budget. UPA allies Samajwadi party and Bahujan Samaj
Party too have expressed discontent for ignoring Uttar Pradesh in the budget.
04 Solicitor General of India Rohinton F Nariman resigns over differences with
law minister
Feb Politics and Government > Solicitor General of India
Rohinton F Nariman resigned on Monday, ending his tenure as the Solicitor General of India from July 2011 to
January2013. It is believed that Nariman had resigned over serious differences of opinion with Law Minister
Ashwani Kumar on representing the government in certain cases outside Delhi. Nariman was drafted in as
Solicitor General of India in July 2011 after Gopal Subramaniam quit in protest against Nariman’s engagement
as lawyer for Kapil Sibal in the 2G scam case. In the last four decades, only three people have managed to
complete a full five-year term as Solicitor General — L N Sinha (1972-77), Dipankar Gupta (1992-97) and G E
Vahanvati (2004-09).
GKCA Update
1st to 28th Feb
05 Europol uncovers match fixing in international football
Feb Sports > Football
European anti-crime agency Europol declared that it had found evidence that around 680 matches including
qualifying games for the World Cup and European Championships and for the champion’s league for European
club sides had been fixed around the world in a scam run from Singapore. About 380 of the suspicious matches
were played in Europe and a further 300 were played in Asia, Africa, South and Central America between 2008
and 2011. The racket involved a network of 425 corrupt officials, players and criminals in 15 countries and
there was proof of 8 million Euros ($11 million) in gambling profits from the match fixing.
05 IMF lowers India’s 2012 growth forecast to 4.5 percent
Feb Economy > Growth
The International Monetary Fund has lowered its projections for India’s economic growth to 4.5 percent for
2012 from its earlier projected figure of 4.9 percent, less than other South Asian nations such as Indonesia,
Philippines and even Bangladesh. Although the size of the Indian economy is larger than these countries, their
interest rates are lower and exports are growing compared to India. The IMF world economic outlook update
showed the ASEAN 5 region comprising Indonesia, Malaysia, Philippines, Thailand, and Vietnam growing by
5.7% in 2012, while the Emerging Market and Developing Economies block is forecast to grow 5.1%. Policy
missteps, administrative paralysis and weak investments have been primarily responsible for India’s slow
growth last year. However, the IMF predicted that the Indian Economy is likely to grow by 5.9percent in 2013,
slightly lower than its earlier projection of 6 percent.
06 Dell to go private in $ 24.4 Billion buyout
> Dell
Feb Corporate
World’s third largest PC maker Dell decided to go private in a $ 24 billion leveraged buyout by a group of
investors that include company founder Michael Dell, private-equity firm Silver Lake and Microsoft
Corporation. Dell’s decision to go private is part of an attempt to revive its PC business away from the financial
pressures of the Wall Street. The deal is the largest leveraged buyout of any type since November 2007 when
Alltel sold for $25 billion to TPG Capital and a Goldman Sachs subsidiary. PC sales had fallen 3.5 percent last
year, the first annual decline in more than a decade and Dell and fellow technology companies such as
Hewlett-Packard, Intel and Microsoft Corp. are witnessing slow growth because of the shift from PCs to
smartphones and tablet computers.
09 Parliament Attack convict Afzal Guru hanged in Tihar Jail
Feb India > Parliament Attacks
Afzal Guru who was convicted in the 2001 Parliament attack case was hanged and buried in secrecy in Delhi’s
Tihar Jail on Saturday, 9th February, 2013. President Pranab Mukherjee had rejected Guru’s mercy petition on
3rd February and the Home Minister had given his approval on February 4 for the hanging. Curfew was
imposed in Kashmir valley and local TV channels and SMSes were shut down in anticipation of protests against
Guru’s hanging. Despite the curfew, at least 50 persons were injured in different incidents of stray violence
across the Kashmir Valley.
The government faced strong criticism for not adequately informing Guru’s family about his execution and not
giving them one last chance to meet him. Afzal Guru’s family received a letter on Monday 11th February, two
days after his execution, disclosing that he was to be hanged on February 9, for his role in the 2001 attack on
Parliament. Guru’s family said that they heard of the execution via news channels. However, Home Minister
GKCA Update
1st to 28th Feb
Sushil Kumar Shinde said that the letter had been sent by speed post two days before the execution i.e. on the
midnight of 7th February.
Meanwhile, Human Rights activists expressed their dissent at Afzal Guru’s sudden hanging as advocate Kamini
Jaiswal who was representing Guru said that the government failed to consider a petition in the Supreme
Court that challenged on whether death sentence should be applicable if not implemented within a certain
time period. Jaiswal also questioned on why the government had hanged Guru in such hurry when the
Supreme Court was still hearing the petition.
11 Pope Benedict XVI to resign over age related health issues
Feb World > Roman Catholic Church
Pope Benedict XVI announced that he’ll retire on February 28, saying that he is too old to discharge his duties
of office as the head of the world’s Roman Catholics. This is the first Papal resignation after Gregory XII in
1415. The next Pope will be chosen by members of a 117 member nominating conclave held in the Sistine
Chapel at the Vatican.
Background:
Cardinal Joseph Ratzinger was elected Pope Benedict XVI on 19th April, 2005 after Pope John Paul II's death.
Pope Benedict was a doctrinal conservative who asserted that Catholicism is true and other religions are
deficient and that Catholicism is in competition with Islam. He also opposed homosexuality, the ordination of
women priests, stem cell research, abortion and the use of condoms to stop HIV/AIDS.
Some specific controversies during his papacy;
1. In 2006 the Pope, while delivering a lecture, referred to a controversial 14th century statement by a
Byzantine emperor that had called Muhammad’s preaching evil and inhuman and also referred to ‘Jihad’ as
violence in the name of religion. This sparked off protests throughout the Muslim World.
2. On 24 January 2009 the Pope lifted the excommunication of four bishops, Bernard Fellay, Bernard Tissier de
Mallerais, Richard Williamson, and Alfonso de Galaretta. A number of progressive Catholics expressed surprise
at the Pope’s decision to revoke the excommunications. Bishop Williamson’s denial of the Nazi genocide
killing six million Jews have lent credibility to the accusation that he is a Holocaust denier. The lifting of his
excommunication presented problems for Catholic-Jewish relations, culminating in the Chief Rabbinate of
Israel severing ties with the State of the Vatican City in protest on 28 January 2009.
3. Benedict’s tenure as Pope was marked by the expose of sexual abuse scandals in the Roman Catholic Church
and his lenient behavior towards the accused priests.
12 Head of Italian firm arrested on bribery charges in a helicopter purchase
deal with India
Feb Politics and Government > Helicopter Deal Scam
Italian authorities have arrested Giuseppe Orsi, CEO of Italian military consortium Finmeccanica on charges of
bribery related to a helicopter purchase deal with India. On Feb 8, 2010, the Defence Ministry signed a Rs.
3,546 cr deal to buy a dozen AW-101 helicopters for Indian VVIPs from UK-based AgustaWestland, a subsidiary
of Finmeccanica. Italian authorities suspect that about 51 Million Euros (Rs. 350 cr) had been paid in bribes to
politicians and other middlemen involved in the deal. The arrests have put substantial pressure on the Indian
government forcing it to launch a CBI probe into the deal. The names of an Indian lawyer Gautam Khaitan,
Sanjeev Tyagi (the cousin of a former IAF chief) and a firm Aeromatrix also allegedly figured in tape
conversations according to the Italian probe.
GKCA Update
1st to 28th Feb
14 American Airlines and US Airways to merge in $ 11 billion deal
Feb Corporate > Mergers
AMR Corporation’s American Airlines and US Airways are set to merge in a $ 11 bn deal that would form the
world’s biggest airline. American Airlines had sought bankruptcy protection on November 29, 2011. American
Airlines’ bankruptcy creditors will have 72% share of the new company while 28% will go to US Airways
shareholders. US Airways Chief Executive Officer Doug Parker will run the new airline, which will retain the
name American Airlines whereas AMR’s CEO Tom Horton will become the new chairman. The AMR-US Airways
merger still requires approval from the US Justice Department and needs to be endorsed by the court
overseeing AMR’s bankruptcy.
14 Securities and Exchange Board of India (SEBI) orders freezing of accounts of
Sahara Group Companies
Feb two
Corporate > Sahara
The Securities and Exchange Board of India (SEBI) has ordered freezing of the bank accounts of Sahara India
Real Estate Corporation Ltd and Sahara Housing Investment Corporation Ltd on its failure to refund money in a
high-profile investor refund case involving over Rs. 24,000 crore. SEBI has also ordered the attachment of
properties of the two companies, their top executives, including the Group Chairman Subrata Roy and has also
asked the two Sahara firms to furnish, within 21 days, details of their investments.
Background:
SEBI said that Sahara India Real Estate Corporation Ltd and Sahara Housing Investment Corporation Ltd had
raised Rs 6,380 crore and Rs 19,400 crore respectively from bondholders; and various illegalities were
committed in raising of these funds. The Supreme Court, in August 2012, had asked Sahara group firms to
refund the money with 15 per cent interest and had asked SEBI to facilitate the refund. The group, in
December 2012, was allowed to pay the money in three installments, including an immediate payment of Rs
5,120 crore, followed by an installment of Rs 10,000 crore in the first week of January and remainder by the
first week of February 2013. SEBI said that neither of the two installments had been paid and therefore it was
initiating action as per Supreme Court orders.
14 Oscar Pistorius charged with girlfriend's murder
Feb World > Oscar Pistorius
Paralympic sportstar from South Africa, Oscar Pistorius, has been charged with murder after his girlfriend
Reeva Steenkamp was shot dead at his home. The exact circumstances surrounding the murder are yet not
clear. The news that he may have killed his girlfriend has shocked the country as the athlete is one of South
Africa's national icons.
In 2009 Pistorius was arrested and charged with common assault by South African police for slamming a door
on a woman at his home. The charges were later dropped.
Background:
Oscar Pistorius is a Johannesburg-born athlete, who was born without fibulas in his legs and had his limbs
amputated below the knee when he was just 11 months old.
Pistorius made history at the London 2012 Olympics when he became the first double-amputee sprinter to
compete in the able-bodied Games, running in the 400m and 4x400m relay. He reached the 400m semi-finals
in the London 2012 Olympics. At the Paralympics he won silver in the T44 200m, gold in the 4x100 relay and
gold in the T44 400m, setting a Paralympic record.
GKCA Update
1st to 28th Feb
In 2008 he won a legal battle over his blades with the International Association of Athletics Federations (IAAF)
for the right to compete in able-bodied competitions.
14 French Prez Hollande in India to dicuss defence & trade deals
Feb World > Indo-French Relations
India and France, went one step further to cement their trade ties during the visit of French President Francois
Hollande to India. This is the first visit of the newly-elected French President to an emerging country in Asia.
The ties between the two countries cover areas such as defence, civil nuclear energy, space and counterterrorism, besides education, science and technology and culture.
Among the defence deals likely to be inked would be for India’s $2-billion light utility helicopter (LUH)
programme. Eurocopter of France is one of the competitive bidders to sell 197 LUHs to India. India and France
have also been working on the short-range surface-to-air missile (SRSAM) project for the past few years.
The two big ticket deals with France — the over $10-billion contract for the purchase of 126 Rafale fighter jets
and French reactors for the Jaitapur nuclear power plant —are not ready for being inked during the visit.
19 Reader's Digest files for bankruptcy
Feb Corporate > Reader's Digest
The parent company of Reader's Digest magazine, RDA Holding Co., filed for a Chapter 11 bankruptcy, which
allows the firm the opportunity to reorganize its debt and to try to re-emerge as a healthy organization, as part
of a financial restructuring move that includes reducing its $465 million debt and converting it to equity .The
company also has a commitment for $105 million in debtor-in-possession financing. Last year, RDA sold its
Allrecipes.com property to Des Moines-based magazine publisher Meredith for $175 million and its Weekly
Reader to Scholastic for an undisclosed sum.
According to RDA Holding CEO Robert Guth, this course of action will most effectively enable them to maintain
their momentum in transforming the business and allow them to capitalize on the growing strength and
presence of their outstanding brands and products.
The 91-year-old magazine was once among the world's best-selling magazines.
21 14 killed and several injured in Hyderabad blasts
Feb India > Hyderabad Blasts
Two powerful bombs fastened to parked bicycles exploded in Hyderabad’s busy Dilsukhnagar Area on
Thursday, 21st February killing 14 people and injuring 119 others. The two bombs went off at around 7pm in
the evening near the Dilsukhnagar bus stop and a popular movie theatre. The blasts are suspected to be the
handiwork of banned outfit Indian Mujahideen. The government has ordered the National Security Guard to
probe into the blast and has sanctioned Rs 2 lakh each to next of kin of those killed and Rs 50,000 each to
those seriously injured.
22 Air Asia to launch low-fare flight plan for tier-II and tier-II I Indian cities
Feb India > Aviation
Malaysia based budget airlines Air Asia will launch low-fare flight plan for tier-II and tier-III city routes. It is
expected to give tough competition to Spice Jet which already has a strong regional presence and Jet Airways
and Indigo which have aggressive expansion plans in tier II and II cities. Air Asia’s primary strategy has been its
low-cost structure which has enabled it to offer some of the lowest fares among airlines in Asia. In 2001, Air
GKCA Update
1st to 28th Feb
Asia had a domestic market share of 9.8% in Malaysia and by 2011; it had grown to become the largest carrier
in the country with 58% market share. On international routes, it had a share of 0.9% in 2001, which rose to
39% in 2011. Air Asia CEO Tony Fernandez said that price would be the key differentiator with other Indian
carriers and it would avoid certain airports which are most costly. Air Asia’s cost per available seat per
kilometer or CASK was the lowest globally at $4.1 in 2011. Indian competitor Spice Jet’s CASK was $4.7 while
Jet Airways’ CASK was even higher at $7.9.
22 Reserve Bank of India to allow private players to enter the banking sector
Feb Bank Specific > RBI
The Reserve Bank of India, on Friday 22nd Feb, released new rules that would allow private players and nonbanking finance firms to enter the tightly regulated banking sector. Private sector companies, public sector
groups and non-banking finance companies are eligible to apply for new bank licenses by July 1 by setting up
non-operative financial holding companies. The minimum equity capital required for setting up a bank under
the new rules is Rs. 500 crore. Also, foreign shareholding should not exceed 49 per cent in the first five years.
Yes Bank was the last private sector bank to enter in 2004, as the RBI had kept tough entry barriers to protect
depositors and ensure stability of the financial system.
25 Kingfisher loses international flying rights and domestic slots
> Kingfisher
Feb Corporate
The Ministry of Civil Aviation has decided to withdraw with immediate effect the international bilateral traffic
rights of Kingfisher Airlines because of non-utilization affecting routes to Bangladesh, Hong Kong, Nepal,
Singapore, Sri Lanka, Thailand, UAE and the UK. These international traffic rights, which are in much demand,
will be made available to others carriers which will help increase 25,000 extra seats per week. In another
significant move, the domestic slots allotted to Kingfishers Airlines were also withdrawn so that they can be
made available to other domestic carriers.
Kingfisher, controlled by Vijay Mallya, was once India's second biggest airline but has reported annual losses
for five years in a row. It has $1.4bn (£870m) in debts and its license to fly has expired at the end of 2012. The
airline has been grounded since October 2012, following repeated strikes by workers over unpaid wages.
26 No party wins clear majority in Italian parliamentary Elections
Feb Politics and Government > Italy Elections
The recently concluded parliamentary elections in Italy might result in a hung parliament as none of the parties
had succeeded in obtaining a majority in the Upper House of Parliament known as the Senate. The center-left
coalition headed by Pier Luigi Bersani has won the lower house vote but has failed to secure a majority in the
Senate. Bersani's coalition won 29.54% of the vote cast for the lower house, less than half a percentage point
more than the center-right coalition headed by controversial three-time Prime Minister Silvio Berlusconi,
which garnered 29.18% of the vote. Of the total vote cast for the Senate, the center-left won 31.63% of the
vote, compared with the center-right's 30.72%. Comedian turned politician Beppe Grillo's anti-austerity Five
Star Movement seemed to have gained widespread popularity among the masses and won 25.55% of the
votes in the Lower House. Meanwhile, a bloc led by current Prime Minister Mario Monti came fourth, with
only about 10% of the votes in the Lower House.
Italy’s large government debt is a problem for the entire Eurozone. The absence of a clear majority in the
Italian parliament will likely delay Italy’s efforts to achieve economic growth and strengthen public sector
finances.
GKCA Update
1st to 28th Feb
Background:
Italian parliamentarians are elected for five-year terms, with the current one due to end in April, 2013. But in
December, the People of Freedom Party (PDL) led by Berlusconi withdrew its support of the reformist
government led by Mario Monti, saying it was pursuing policies that "were too German-centric." Monti
subsequently resigned, and the parliament was dissolved.
Former Prime Minister Silvio Berlusconi left office in November 2011, facing claims of economic
mismanagement as the Eurozone struggled to contain Italy's debt crisis. Berlusconi was convicted of a tax
fraud in 2012 for which he was sentenced to four years in jail. The verdict will be delivered after the elections.
26 85th Academy Awards announced, Daniel Day Lewis wins best actor for
time
Feb third
Awards > Oscars
The Academy of Motion Picture Arts and Sciences (AMPAS) presented the 85th Academy Awards, more
commonly referred to as the Oscars, on the 4th of February to honor the best films of 2012. The ceremony was
held at the Dolby Theatre in Hollywood, California. It was the most watched ceremony since the 76th Academy
Awards in 2004, with 42.40 million viewers. Life of Pi won four awards (the most for the evening), including
Best Director for Ang Lee. Argo won three awards, including Best Picture. Les Misérables also won three
awards. Django Unchained, Lincoln and Skyfall won two awards each. Other winners were Silver Linings
Playbook, Brave, Zero Dark Thirty, Anna Karenina, Searching for Sugar Man, Inocente, Curfew, Amour and
Paperman with one award each. Daniel Day-Lewis won the Best Actor award for a third time, portraying the
titular character in Lincoln. With his win, Lewis became the first actor to win three best-actor Academy
Awards, adding the top prize to those for 2007's There Will Be Blood and 1989's My Left Foot. Jennifer
Lawrence won the Best Actress award for her role in Silver Linings Playbook.
Awards
12 Pandit Ravi Shankar awarded Best World Music Album Grammy
Feb Grammy
Sitar Maestro Pandit Ravi Shankar was on Sunday, 10th Feb, posthumously awarded the best world music
album trophy at the 55th Grammy Awards held in Los Angeles. Pandit Shankar had also been conferred the
Lifetime Achievement Award by the Recording Academy a day prior to the Grammies. His album “The Living
Room Sessions Part 1” beat competition from daughter Anoushka Shankar’s “Traveller”, Amadou and
Mariam’s “Folila”, Daneil Hoe’s “On a Gentle Island Breeze “ and Hugh Masekela’s “Jabulani” to win the award.
Bank Specific
15 SBI net up 4% on bad loan provisions
Feb SBI
State Bank of India's (SBI) third quarter net profit rose at a slower pace by only 4 percent year-on-year to Rs
3,400 crores on the back of lower net interest income, which declined nearly 3% year-on-year to Rs 11,154
crore during the same period.
Over the last one year, the bank has been aggressively cutting its base rate, which has impacted its interest
margin. Its strong CASA (Current Account Saving Account ) base will help protect its interest margin.
GKCA Update
1st to 28th Feb
While SBI expanded its loan book nearly 16 per cent to Rs 9.78 lakh crore, gross non-performing asset ratio
increased to 5.30 per cent (at Rs 53,460 crore) as against 5.15 per cent in the July-September quarter.
Corporate
01 Court denies rights to Bisleri to market Maaza in India
Feb Maaza
The Delhi High Court in a recent verdict declared that Bisleri could not market Maaza in India though it could
use the brand in overseas markets. The verdict follows a five-year old court case between Bisleri International
proprietor Ramesh Chauhan and Coca Cola International over the trademark rights of Maaza mango drink.
Though Bisleri cannot sell Maaza in India, it can manufacture it for export outside India. Bisleri already sells
Maaza in four countries outside India, whereas Coca Cola has yet not marketed Maaza overseas.
Background:
Coca Cola reentered India in 1993 and bought out Parle beverage brands namely Thums Up, Limca, GoldSpot,
Citra and Maaza from Ramesh Chauhan. Coca Cola had filed for registration of Maaza in some international
markets in 2007 following which Bisleri sent a legal notice to Coca Cola in 2008 stating that it was the neither
the owner nor proprietor of the trademark Maaza.
13 Banks decide to recall loans given to Kingfisher Airlines
Feb Kingfisher
A consortium of lenders led by SBI has decided to start the process of recovering Rs. 7,500 cr outstanding loans
from the non-operational Kingfisher Airlines, because of the airline’s failure to come up with a specific revival
plan. Each bank will decide its individual course of action. The banks might start encashing securities including
Kingfisher owner Vijay Mallya’s personal property if the airline fails to repay the loans as well as overdue
payments amounting to more than Rs. 1,000 cr.
13 Philips stops production of TV sets and video players
Feb Philips
Philips has decided to stop production of TV sets and video players to focus more on the profitable consumer
lifestyle, healthcare and lighting businesses. With this, Philips aims to completely shut down its poorly
performing home-entertainment business. Philips’ Chief Executive Frans Van Houten has also cut jobs and
overheads, including office space and IT systems, scaled back inventory to free up cash flow, and launched a 2
billion euro share buyback aimed at bringing Philips back on a profitable note. All these reform measures have
pushed the stock to its highest level since March, 2011.
18 Uninor shuts services in Mumbai, 18 lakh users suffer
Feb Uninor
Telecom operator Uninor shut down its Mumbai operations following a Supreme Court order. The court had
cancelled 22 licences of Uninor in February 2012. The shutdown follows a Supreme Court order that all
operators who did not win spectrum in the previous auctions close down services immediately.
The majority stakeholder of the company, Telenor, participated in November 2012 auction through new entity
Telewings Communications and won spectrum in six circles .Telenor is now in process of transferring business
GKCA Update
1st to 28th Feb
of Uninor in Maharashtra and Goa, Gujarat, UP East, UP West, Bihar and Jharkhand and Andhra Pradesh
service areas, to Telewings Communications.
Uninor said it will sign roaming agreements with other operators to ensure that all Uninor customers get
seamless connectivity when travelling to Mumbai.
21 Exxon Mobil Corp. to acquire Celtic Exploration in a $ 2.6 billion deal
Feb Acquisitions
The Canadian government has approved the acquisition of Celtic Exploration Ltd by Exxon Mobil Corporation.
In October, 2012, Exxon Mobil agreed to buy Celtic Exploration at a price of $2.6 bn with an objective to
increase its presence in some of Western Canada’s most promising shale oil and gas regions. The Investment
Canada Act requires the government to approve certain foreign investments only after determining whether
those investments are of net benefit to the country. In December, Canada had approved China's biggest
foreign takeover, the $15.1 billion bid by CNOOC Ltd for energy company Nexen Inc, but later put forth strict
restrictions on future acquisitions by foreign state-owned companies.
21 Info Edge India acquires 57.9 percent stake in online restaurant guide
Zomato
Feb Acquisitions
Info Edge India has acquired a majority stake of 57.9 % in Zomato by investing Rs. 55 crore. Info Edge had
earlier invested Rs. 31 crore in Zomato, which makes its total investment in the company Rs 86 crore. Although
Info Edge has become a majority shareholder, it wouldn’t change the operating relationship between the
investors and the founders. Over the last 3 years, Info Edge has invested almost Rs. 200 crore in 7 to 8
unrelated internet companies, with a view to increase its presence in the e-commerce segment.
Background:
Info Edge is an on-line classifieds company that has websites and associated businesses in recruitment,
matrimony, real estate and education.
Zomato is a restaurant discovery platform with in-depth information on restaurants.
22 iGATE CEO Phaneesh Murthy aims to change the IT industry’s traditional
billing model
Feb iGATE
iGATE CEO and former Infosys executive Phaneesh Murthy aims to change the IT industry’s traditional billing
model by following a model of outcome based billing, instead of basing fees on the time and labour put in by
the workers of IT companies. Such a billing model might be appealing to clients with less-certain budgets in a
tough economy. If the services don't deliver an agreed-upon result, the customer pays less. The strategy is
also expected to boost profit margins for IT companies. However, opinion remains divided as to which one of
the two is a better billing model.
26 GSM Players to jointly boycott spectrum auctions next month
Feb Spectrum Auctions
GSM companies will jointly boycott next month’s CDMA spectrum auctions complaining that the reserve price
was too high and that there were issues in the reallocation process which needed legal resolution before
deciding on a bidding strategy. Russian conglomerate Sistema’s Indian mobile phone unit is the only company
GKCA Update
1st to 28th Feb
to have filed its application to participate in the bidding process. The boycott could serve as a major setback to
the Finance Ministry’s objective to raise revenue of Rs. 30,000 crore from the sale of mobile airwaves, to help
in containing the fiscal deficit. The telecom industry’s current strategy is in sharp contrast to 2010 when the
same companies bid over Rs. 1 lakh crore for 3G and BWA spectrum.
28 Indian IT companies eye HP deals coming up for renewals
Feb Software Industry
Indian Outsourcing Companies are looking forward to acquire many of Hewlett Packard’s deals that are coming
up for renewal. HP has key outsourcing deals worth billions of dollars such as those with American Express and
Bank of America that are coming up for renewal. About $100 billion (Rs 5.4 lakh crore) worth of IT outsourcing
deals will expire in 2013, with almost 15% of it being with HP. HCL Technologies and Tata Consultancy Services
(TCS) seem to be the most successful ones among India’s top tier outsourcing firms competing for HP clients. A
major concern for HP could be that clients are asking for flexible engagement models with elements of
computing offered as a service, lower costs, and higher value and Indian companies are aggressively pitching
newer technology-based solutions to these clients at lower price points.
28 Facebook buys Atlas Ad Business from Microsoft
Feb Facebook - Microsoft
Facebook announced that it has acquired Microsoft's Atlas Advertiser Suite, an online ad business and
management service. Facebook did not disclose the price of the deal but said that the deal will benefit both
marketers and users. The company said it looked to Atlas to help marketers and agencies get a full view of
campaign performance, noting the service's capabilities for this type of analysis and measurement.
Economy
14 Japanese economy shrinks 0.4% in 4th quarter due to declining exports and
business investment
Feb Japan
The Japanese economy contracted at an annualized rate of 0.4% in the October to December quarter, marking
it the third consecutive quarter of contraction due to declining exports and business investment. The economic
contraction is largely due to a 3.7 percent decline in the export of Japanese goods and services abroad and a
decline in domestic demand. Efforts to revive the economy are on with the Japanese Government approving a
10.3 trillion yen ($116bn; £72bn) stimulus package in January. Further, reform measures by Japan’s Central
Bank have reduced the value of the Yen which has made Japanese goods affordable in foreign markets and has
increased earnings of Japanese exporters.
19 Finance Ministry to pay Rs. 34,000 crore to states for losses from Central
Sales Tax rate cut
Feb Finance Ministry
The Union Finance Ministry has agreed to pay Rs. 34,000 crore compensation package to states that have lost
revenue in 2010-11 due to the reduction of Central Sales tax to 2 percent. The centre will compensate states
fully for 2010-11, pay for 75% of the losses in 2011-12 and refund half the losses for 2012-13. The Centre has
already paid Rs 6,393 crore as compensation to states for 2010-11 but claims amounting to Rs 19,000 crore are
still pending. The Finance Ministry is likely to introduce the Goods and Services Tax in the 2013-14 budget and
make a provision in it for fully compensating states for CST losses in 2010-11.
GKCA Update
1st to 28th Feb
21 Income Tax Department asks HSBC Geneva A/C holders to submit details of
accounts and surrender rights under the Swiss Secrecy Law
Feb Income-Tax
Income-tax officials have asked account holders of HSBC Geneva to sign on a two-page letter spelling out their
account details and surrendering their rights under the Swiss secrecy law. The individuals concerned have been
told by tax officials to mail the signed letter to two in-house lawyers of the bank and submit a copy to the
Income - Tax Department. A letter from account holders, authorizing the bank to share account records will
allow the Indian Income- Tax Department to access transaction details and raise tax claims on undisclosed
income. The department's decision to seek account holders' consent is probably aimed at saving time. Invoking
the information-sharing agreement between the two countries, which came into effect on Jan 1, 2012, in
Switzerland and on April 1, 2012, in India, could have been a more time-consuming process. The I-T
department has already launched prosecution proceedings against persons named in the list of Indian account
holders with LGT Bank in Liechtenstein, a tax haven near Germany.
India
05 Kalmadi and 9 others put on trial in Commonwealth Games corruption case
Feb Commonwealth Games
Former Commonwealth Games chief organizer Suresh Kalmadi and 9 others including Lalit Bhanot and V K
Verma were put on a trial for illegally awarding contracts to a Swiss firm that caused a loss of Rs. 90 crore to
the exchequer. The contract for the CWG's timing, scoring and results system awarded to Swiss Timing cost Rs
157 crore while Spanish firm MSL's Rs 62 crore bid was unfairly eliminated by the Kalmadi-led organizing
committee. The accused, who have been charge sheeted by a CBI special court, face charges of criminal
conspiracy, forgery, cheating and other offences invoked against them.
11 36 killed in Stampede at Allahabad Kumbh Mela
Feb Kumbh Mela
36 people were killed in a stampede at the Kumbh Mela in Allahabad where around 30 million people had
gathered to bathe at the point where the Ganga and the Yamuna rivers are said to meet the mystical Saraswati
river. Twenty seven of the dead were women – most elderly and poor. There are contradictory versions of
what caused the stampede. Railway officials attributed it to a baton charge by the police which triggered the
stampede. According to the State government, it was caused by a footbridge handrail collapse which sent
people slipping down the stairs starting a stampede. UP minister Mohammad Azam Khan resigned as Kumbh
Mela in charge owing moral responsibility for the stampede.
12 Public Prosecutor A.K. Singh removed from 2G spectrum case trial
Feb 2G Spectrum Case
The Central Bureau of Investigation (CBI) has removed public prosecutor A.K. Singh from the 2G spectrum trial
case after allegations surfaced that Singh was in touch with Sanjay Chandra, the managing director of Unitech.
Chandra is one of the prime accused in the 2G Spectrum case. The CBI possesses an audio clip containing the
purported conversations between Mr. Singh and Mr. Chandra discussing specifics of the ongoing 2G trial. The
CBI has initiated an enquiry to probe the charges against Singh and has appointed a new prosecutor in his
place.
GKCA Update
1st to 28th Feb
12 Suryanelli Rape case Convict claims involvement of P J Kurien
Feb Suryanelli Rape Case
Dharmarajan, the lone convict in the Suryanelli Gang Rape case has claimed that P J Kurien, the Deputy
Chairman of the Rajya Sabha was involved in the incident as claimed by the victim. Dharmarajan, who alone
was convicted by the High Court in 2005 while acquitting 35 others in the case, alleged that former ADGP Sibi
Mathews, who headed the SIT, insisted that he should not name Kurien in the case. Kurien and Sibi both
rejected Dharmarajan’s claim. Dharmarajan has been absconding since being convicted in 2005.
Background:
The Suryanelli rape case concerns a 16-year-old girl who was sexually harassed and assaulted continuously for
40 days by 42 men in 1996. The girl from Suryanelli in Idukki district of Kerala in India was transported from
place to place across Kerala. The accused included some well-known and well-placed individuals including the
congress leader P J Kurien.
18 More evidences in 2G call transcripts
Feb 2G Spectrum Case
New evidence has surfaced in the 2G call transcripts controversy which suggests that the public prosecutor
A.K. Singh had been in communication with the accused Shahid Balwa of Swan Telecom, either directly or
through a third party. Mr. Singh further cited judgments favouring the accused, suggesting that these should
be used by defence counsel to destroy the prosecution’s case.
Earlier the CBI had removed public prosecutor A. K. Singh from the 2G spectrum trial case after allegations
surfaced that he was in touch with Sanjay Chandra, the Managing Director of Unitech. Detailed call transcripts
of a conversation allegedly between A.K. Singh and Sanjay Chandra, reveal that the prosecutor was additionally
in discussion with Shahid Balwa of Swan Telecom.
19 Weak realty market a blessing in disguise for big corporates
Feb Realty Market
The slow real estate market has helped many companies, both Indian and foreign, to move their headquarters
to bigger and better offices. Multinational giants such as Bayer CropScience, L'Oreal, Pepsi-Co, Volkswagen and
FedEx along with Indian corporate majors such as Cipla, Britannia and HDFC have cleverly used the slow
market trend to save on both fronts — cost and space.
Global financial majors like Goldman Sachs and Citigroup have also used the current weak market to strike
large realty deals for increasing their operations in Mumbai and Bangalore, respectively.
This is a much-awaited opportunity for commercial occupiers who are looking to shift operations. The prices
and rentals of commercial properties aren't likely to move up, which will attract more such deals.
CBI name former IAF chief Tyagi and his 3 cousins in preliminary enquiry in
25 the Rs. 3,600 crore helicopter deal
Feb Scam
The Central Bureau of Investigation (CBI) has registered a preliminary enquiry against 11 persons, including the
former IAF Chief, Air Chief Marshal S.P. Tyagi, and his cousins, besides four companies, in connection with the
alleged payment of bribes by Italian firm AgustaWestland through middlemen in India to bag the Rs. 3,600crore deal for supply of 12 VVIP helicopters. The names of Indians in the chopper deal came to light during a
GKCA Update
1st to 28th Feb
probe by the Italian agencies. The former IAF chief has already denied his role in the matter. According to the
preliminary enquiry, Finmeccanica, parent company of AgustaWestland, paid a commission to European
intermediaries, through whom payments in installments were made to Indian nationals to ensure that the
contract for supply of choppers was awarded to the company. The bribe money was transferred allegedly
through two Indian companies, IDS Infotech and Aeromatrix, which have been named in the PE, besides
Finmeccanica and AgustaWestland. The former Finmeccanica head, Giuseppe Orsi, and the former
AgustaWestland Chief Executive Officer, Bruno Spagnolini, have also been named.
28 Etihad wants Indian government assurance for protection of Jet investment
Feb Aviation
The Etihad management wants an assurance from the government of India that its investment in Jet Airways
would be protected. Etihad had expressed concerns that it might meet a fate similar to Etisalat, the UAE-based
telecom company which lost over Rs 3,000 crore in the 2G fiasco. The Jet-Etihad deal is likely to be delayed till
the government gives an assurance regarding its commitment to protect Foreign Direct Investment. Earlier,
the UAE-based airline Etihad had announced that it will pick up a 24% stake in the Naresh Goyal owned Jet
Airways and the Ministry of Civil Aviation had given its nod to the deal.
Others
18 PSU banks to hire 56,500 jobs in next 6 months
Feb Jobs
Public sector banks in India will recruit over 56,500 personnel in the next six months in the highest ever
recruitment drive by the banking industry in more than a decade. The Reserve Bank of India (RBI) is also set to
issue new licences to PSU banks permitting them to open new branches.
The Institute of Banking Personnel Selection (IBPS) , which is in charge of conducting common written exam
and common interview for nationalized banks, said 20 nationalized banks excluding State Bank of India will
hire 22415 officers and 32453 clerks.
28 General Studies to carry more weight in UPSC
Feb UPSC
The Union Public Service Commission (UPSC) notified that it will give more weight to General Studies by
introducing new papers replacing optional subjects in its Main examination. This will ensure that all candidates
are judged on the basis of in-depth knowledge and understanding rather than information gathered at the last
moment. The civil services examination (CSE), which is meant for selecting candidates for elite central services
like IAS, IFS, IPS, IRS and others, has three stages comprising preliminary, mains and personality test
(interview). The Commission has, so far, temporarily withheld issuance of a notification for this year's civil
services examinations, which was scheduled to be notified on February 2. The Commission, however, later said
it could not notify the CSE due to some unforeseen circumstances.
GKCA Update
1st to 28th Feb
Politics & Government
02 Pakistan hands over operation of Gwadar Port to China
Feb China
Pakistan’s cabinet, in its latest decision, transferred the operation responsibility of the strategically located
Gwadar Port to China from the Port of Singapore Authority (PSA). Gwadar port, a deep-sea port situated on
the Arabian Sea in Baluchistan Province of Pakistan, was built by China but managed by PSA, which had
recently decided to withdraw from the contract over issues of land transfers, security and poor infrastructure.
Pakistan expects China to complete the port development in record time and turn it into a naval base. Gwadar
can be an important strategic port for China for transporting oil and gas through pipelines into northwestern
China. In case of a conflict, China’s energy supplies can be routed through Gwadar where Pakistan navy can
add to the security.
18 Nagaland Minister detained for carrying 1 cr, arms
Feb Nagaland
Nagaland Home Minister Imkong L Imchen was detained for allegedly transporting Rs 1.10 crore in cash, arms
and ammunition and liquor in a vehicle in Wokha district in the poll-bound state. He was going to his
constituency Koridanga from Kohima when Assam Rifles personnel conducting search of vehicles near Wokha
district found the arms and ammunition, liquor and cash.
Imchen is the Nagaland People's Front (NPF) candidate from Koridanga and is also the NPF campaign in-charge
of Mokokchung district.
Earlier in June 2010, Imchen was detained at Kathmandu’s Tribhuwan International Airport after he was found
carrying Rs.9 lacs in Indian currency, in denominations of Rs. 500 and Rs.1000.To prevent counterfeit, Indian
currency of both denominations are banned in Nepal.
19 Govt cash-strapped, keeps bloating
Feb Crisis
The government is fighting to restore the health of its battered public finances - and even contemplating
measures like taxing the super rich - but there is hardly any talk of reducing the government employee
population.
The government has budgeted over Rs 1.15 lakh crore in salaries, allowances and travel bills for 34.1 lakh
employees, which is very large as compared to the expenditure on almost the same employee population a
decade ago when the government roughly had the same number of employees (32.2 lakh) and spent Rs 31,000
crore in paying their salaries, allowances and travel bill.
While the government has maintained a freeze on fresh hiring for the past several years, it has increasingly
depended on contract workers for odd jobs, which has also added to expenditure.
26 Park Geun-hye becomes South Korea's first female president
Korea
Feb South
Park Geun-hye became South Korea's first female president on Monday, 25th February securing 52% of the
votes. She is the daughter of Park Chung-hee, one of the founders of modern Korea who took power after a
coup d'etat and ruled for 18 years before being shot dead by his intelligence chief in 1979. Park pledged to
build a policy of trust between North and South Korea and stressed on her policy of trustpolitik which speaks
GKCA Update
1st to 28th Feb
of establishing mutually binding expectations based on global norms. She also vowed to restructure welfare
programs and increase job opportunities for the people of South Korea.
28 Joint Parliamentary Committee (JPC) to be set up to inquire into bribery
on the Rs. 3,600 crore helicopter deal
Feb allegations
Chopper Scam
The government has moved to set up a Joint Parliamentary Committee (JPC) to inquire into allegations of
bribes being taken in the procurement of VVIP helicopters from Augusta Westland and the role of alleged
middleman in the transaction. The entire opposition protested this move and walked out saying that the
government was trying to divert from the topic as the JPC had no investigative powers and the matter required
custodial interrogation which the JPC couldn’t do. The CBI had, already, framed a charge sheet accusing former
IAF chief S P Tyagi and 10 others for allegedly taking bribes for securing the chopper deal.
Science and Technology
02 Hackers gain access to 2, 50, 00 users’ data on Twitter
Feb Twitter
Social Networking site Twitter said on Friday that hackers may have gained access to usernames, e-mail
addresses and encrypted passwords of around 2, 50,000 of its users. Twitter said that it shut down one attack
just moments after it was detected. Twitter has reset the pilfered passwords and sent mails to all users
requesting them to create new ones. The incident might have happened after an employee’s home or work
computer was hacked through loopholes in the Java computing language.
13 Mice not the perfect test-subject for all humans’ ills
Feb Mice
Researchers have found that mice, which have been the favourite test-subject of researchers since ages, might
not be the perfect model for all human diseases. Researchers in the study said that the mice-model has been
totally misleading for three major diseases – sepsis, burns and trauma. Researchers also said that mice as a
test-subject might be doubtful to research diseases involving the immune system, including cancer and heart
disease. For instance, Mice can have something that looks like sepsis, but is very different from the condition
in humans. Medical experts said that the revelation would change the course of research worldwide for Sepsis,
a potentially fatal infection that is considered as one of the main reasons of ICU deaths in the US every year.
14 Air pollution fifth leading cause of death in India: Study
Feb Pollution
According to the Centre for Science and Environment's (CSE) analysis of government data and the Global
Burden of Disease report's data on India, air pollution has become the fifth leading cause of death in India after
high blood pressure, indoor air pollution, tobacco smoking and poor nutrition, with about 6,20,000 premature
deaths occurring from air pollution-related diseases.
Out of the 180 cities that were monitored, only two towns - Malapuram and Pathanamthitta in Kerala - met
the low pollution norms for all pollutants. The top five critically polluted cities include Gwalior, West
Singbhum, Ghaziabad, Raipur, and Delhi.
GKCA Update
1st to 28th Feb
The analysis concluded that the number of premature deaths due to air pollution had increased six fold over
the last 10 years.
16 Bhabha Atomic Research Centre (BARC) launches technology transfer
to boost rural development
Feb initiative
BARC
The Bhabha Atomic Research Centre, Mumbai is launching a technology transfer initiative in and around
Madurai to focus on areas of water, agriculture, food processing, storage and preservation and solid waste
management. The technology transfer and collaboration division of BARC will demonstrate affordable
technologies to farmers, entrepreneurs, officials, students, women self-help groups and non-governmental
organizations which will boost rural development and make villages self-reliant. Foldable solar driers for
farmers, shelf-life increasing technology for onions and preservation models are part of the technology
transfer initiative that will facilitate production and help in revenue generation.
20 Iceland to export excess electricity to Europe
Feb Iceland
Iceland has one of the world’s largest reserves of Geo-thermal Energy which allows it to produce a large
amount of electricity. Iceland, which has a population of 3,20,000 people, sells only about 17% of its electricity
to households and local industry and the rest goes to aluminum smelters owned by foreign companies. The
cost of electricity in Ireland is less than half the going rate in the European Union.The state-owned power
company, Landsvirkjun, which operates the Krafla facility, Iceland’s first geo-thermal power station, is
contemplating ways to transport the excess electricity to the 500 million customers of the European Union and
sell it at a much higher price. The power company has conducted extensive research into the possibility of a
massive extension cord or a “submarine interconnector,” to transport the electricity. Such a cable would
probably go first to the northern tip of Scotland, which, about 700 miles away, is relatively close and then all
the way to continental Europe, nearly 1,200 miles away. That is more than three times longer than a link
between Norway and the Netherlands, which is currently the world’s longest. A connection to Europe would
not only allow Iceland to tap the export market but also to import electricity from Europe in the event of a
crisis, a backup that would allow it to stop keeping large emergency reserves, as it does now. A government
committee is looking into idea of the cable project to transmit electricity.
Sports
12 Wrestling removed from 2020 Olympics
Feb Wrestling
The executive board of the International Olympic Committee has decided to remove Wrestling from the 2020
Olympic Games. The World Wrestling Body and several international wrestlers have expressed their dissent at
the decision. The decision came as a shock to India, which hoped to increase its medal count in the 2020
Olympics. India’s wrestling brigade had performed brilliantly in the 2012 London Olympics, with Indian
wrestlers Sushil Kumar and Yogeshwar Dutt winning a silver and bronze medal respectively.
GKCA Update
1st to 28th Feb
World
06 Subra Suresh to head Carnegie Mellon University
Feb US
Subra Suresh was announced as the new president of Carnegie Mellon University, replacing Jared L Cohon who
had been on the role for 16 years. Prior to this, Suresh was the director of the National Science Foundation, an
independent US government science agency charged with advancing all fields of fundamental science,
engineering research and education. Suresh, a native of Chennai, had been nominated in 2010 to be the NSF
director by President Barack Obama. Suresh will be the 9th President in CMU’s 113-year old history. Earlier,
Suresh had also served as the dean of the School of Engineering at the Massachusetts Institute of Technology.
12 North Korea conducts third nuclear test
Feb North Korea
North Korea confirmed on 12th February that it had conducted a successful third underground nuclear test.
The test was reported to have taken place at a test site in the North Hamgyeong province, where the Punggyeri nuclear complex that conducted tests in 2006 and 2009 is located. The tests are aimed at perfecting North
Korea’s aim of building nuclear warheads, small enough to be placed on long-range missiles. The test was
heavily condemned by the United Nations and also by neighbouring South Korea and Japan, with Japan saying
that it was considering imposing unilateral sanctions on the North.
China, which is North Korea’s biggest ally and its only source of financial and food aid, expressed strong
dissatisfaction and firm opposition to the test and demanded to the North Korean Ambassador that his country
cease making further threats. However, China, views North Korea as a crucial strategic buffer against the U.S.
and its allies in the region, and has, till now, shown no signs of rethinking its close strategic ties.
15 Pakistan tests another nuclear-capable missile
Feb Pakistan
Pakistan has successfully test fired the Short Range Surface to Surface Ballistic Missile Hatf II (Abdali), as part of
the process of validation of land based ballistic missile systems. Hatf II with a range of 180 km, can carry
nuclear as well as conventional warheads with high accuracy. The missile capable of carrying nuclear warheads
for delivery over short ranges is said to possess ‘shoot and scoot’ attributes, which refer to the military tactic
of firing at a target with accuracy and immediately relocating to another position to avoid counter-fire from
enemy positions.
It was the second missile test by Pakistan in a week.
22 Europe’s horse meat scandal spreads to Asia
Feb Horse Meat Scandal
The horse-meat scandal of Europe spread to Asia with Hong Kong Authorities asking ParknShop, one of the
biggest supermarket chains in Hong Kong to remove lasagne made by frozen food giant Findus, one of the
firms at the centre of the European Horse Meat scandal. The product was imported from Britain and made by
French firm Comigel. Hong Kong's Centre for Food Safety said on Wednesday that the item might be
adulterated with horse meat which has not undergone tests for veterinary drugs.
Background:
GKCA Update
1st to 28th Feb
The 2013 horse meat adulteration scandal is ongoing in Europe. Foods sold as containing beef were found to
contain undeclared horse meat, as much as 100% of the meat content in some cases. The issue came to light
on 15 January 2013, when it was reported that horse DNA had been discovered in frozen beef burgers sold in
several Irish and British supermarkets. While horsemeat is not harmful to health and is eaten in many
countries, it is considered a taboo food in many countries including the UK and Ireland, in addition to being a
lower-cost ingredient than beef.
26 Rajat Gupta ordered to pay Goldman Sachs $6.2 million for legal fees
Feb Insider Trading
Rajat Gupta, a former Goldman Sachs board member has been ordered by a New York Court to pay $ 6.2
million for legal fees incurred by Goldman Sachs during his trial, in which he was convicted for insider trading.
Rajat Gupta was convicted last June, of revealing boardroom trading secrets to his friend Raj Rajaratnam, the
former Galleon hedge fund tycoon who was earlier sentenced to 11 years in prison for insider trading.
Currently, Gupta is free on bail while appealing his two-year prison sentence.
In addition to his spot on the Goldman Sachs board, Gupta had been head of the renowned consultancy
McKinsey & Co, and a director of Procter & Gamble making him one of the most successful Indian Immigrants
in the United States.
GKCA Update
1st to 31st Mar
Starred Articles
01 Bangladesh War Crimes accused sentenced to death, violent protests kill 44
Mar people
World > Bangladesh Riots
A special war crimes tribunal in Bangladesh has sentenced Jamaat-e-Islami top policy maker Delwar Hossain
Sayedee to death after he was found guilty of eight counts out of 20 involving mass killings, rape and atrocities
during the nine-month war against Pakistan. The sentence sparked off violent protests between Jamaat-eIslami supporters and police which led to the death of more than 44 people. The Jamaat and its students wing,
Islami Chatra Shibir, had called for a two-day nationwide strike from March 3. Meanwhile, the young activists,
who had called for the February Shabagh protests demanding death penalty to Jamaat leaders, have vowed to
resist the strike. Militant activists of the Jamaat attacked temples and houses belonging to Hindus at Noakhali’s
Begumganj. The police retaliated with tear gas and rubber bullets and had to open fire in some places to
control the situation. Opposition Khaleda Zia’s party has questioned the conduct of the trial saying that it was a
politically motivated move to destroy the opposition. International Human Rights Organizations have also
questioned the fairness of the trial after the disappearance of a witness for Sayedee.
Background:
Sheikh Hasina's government initiated the special war crimes tribunal in 2010. Two Jamat leaders had been
convicted earlier and several top leaders of Jamaat are on trial for their alleged role in the atrocities during the
war. Jamaat-e-Islami, the largest Islamic party in Muslim-majority Bangladesh, had campaigned against the
1971 independence war, but it denies committing any atrocities. Jamaat is a key ally of the country's largest
opposition party, the Bangladesh Nationalist party, led by the former premier Khaleda Zia and was a partner in
her government from 2001 to 2006.
03 US Government orders broad cuts in US Government spending
Mar Economy > Budget Sequestration
US President Barack Obama formally announced budget sequestration after he and fellow congressional
Republicans failed to reach a deal to avert automatic reductions that could dampen economic growth and
defence spending. The US federal government is reducing spending by $1.2 trillion over the next nine years,
including $85 billion over the final seven months of this fiscal year. The area most affected is called
discretionary spending, which requires an annual appropriation bill and is typically set by the House and
Senate Appropriations Committees. It includes defense spending and non-defense discretionary spending such
as cabinet departments and agencies. There will be a decrease of $42.7 billion in defense spending outlays and
$28.7 billion in non-defense spending outlays for 2013.
The sequestration also affects certain mandatory spending. Mandatory spending represents outlays to
qualified program participants and does not have to be renewed annually. Major categories of mandatory
spending include Medicare, Medicaid and Social Security. The latter two programs are not in the scope of the
sequestration. However, Medicare and other mandatory spending totaling $47 billion would also be reduced
during the 2013-2022 period. The automatic budget reductions will cause a 0.6 percentage-point reduction in
U.S. economic growth in 2013.
Background:
Budget Sequestration is an U.S. legal procedure in which automatic spending cuts are triggered. The law
requires that each program, project or activity at every federal agency be cut an equal percentage; though the
definitions of these terms may vary across agencies.
GKCA Update
1st to 31st Mar
Republicans rejected the Democrats’ call for additional higher taxes for top earners. On the other hand, Senate
Republicans’ proposal would have kept the $85 billion in cuts this year while requiring Obama to submit a
proposal by March 15 on how to allocate them. Both plans failed to advance in the Democrat-controlled
Senate last week which led to the budget sequestration.
04 Child born with HIV cured for the first time
Mar Science and Technology > HIV
A baby girl born in Mississippi infected with the HIV virus has been cured after early treatment with standard
HIV drugs. This is the first instance where a child has been remitted of the disease completely without the
need for regular drugs and standard blood tests showed no signs of the virus making copies of itself. This path
breaking case could offer insights on how to eradicate the HIV virus among new-born children.
04 Narendra Modi’s keynote address at the Wharton Economic Forum
Mar scrapped
World > Wharton Economic Forum
The Wharton India Economic Forum revoked its decision to invite Gujarat chief minister Narendra Modi to
deliver a key note address after three Indian-American professors from the University of Pennsylvania sent a
petition signed by more than 250 people against inviting Modi to the forum. Modi was invited by the Forum to
deliver the keynote address at its annual conference on March 23 via video conference. The three professors
and some students who signed the petition said that Modi’s political model is flawed and based on serious
flouting of human rights. Immediately after Modi’s address was called off, Shiv Sena leader Suresh Prabhu and
Adani Group Chairman Gautam Adani, both of whom are known to be close to Narendra Modi, opted out of
the programme. However, it was officially conveyed by the Adani group that Gautam Adani won’t be attending
the programme as he has other prior commitments.
05 Bhabha Atomic Research centre to design world’s largest magnet
Mar Science and Technology > BARC
The Bhabha Atomic Research Centre is designing the world’s largest magnet weighing 50,000 tonnes and
slated to be several times bigger than the one at the Compact Muon Solenoid detector at CERN, Geneva. The
massive magnet will play a major role in the Rs 1,500-crore India-based Neutrino Observatory coming up 4,300
feet below a cave in a mountain not far from Madurai in Tamil Nadu.
06 Venezuelan President Hugo Chavez dies at 58
Mar World > Venezuela
Hugo Chavez, the president of Venezuela died on Tuesday, the 6th of March after a prolonged period of
cancer. Chavez’s election to the Presidency in 1999 ushered in a new era of Venezuelan politics and its
international relations. Chavez was a socialist and his presidential rule of 14 years made him popular among
the poor of the country but a hate figure for the opposition. Chavez’s first major foray into national politics
happened when he led the Revolutionary Bolivarian Movement or MBR-200 in 1982. On February 4, 1992,
Chavez led a failed military rebellion against then president Carlos Andres Perez. Chavez served two years in
prison before then President Rafael Caldera granted him amnesty. Chavez went on to form a new political
party, the Fifth Republic Movement, which carried him to a presidential election victory in 1998. Chavez was a
strong critic of the US calling them “Imperialist” and was a major ally of socialist countries. He accused the
United States of fuelling his overthrow. His fiery campaign speeches blamed the traditional parties for
corruption and poverty. Chavez wanted to make Venezuela, a major oil producer, into a socialist state in his
GKCA Update
1st to 31st Mar
Bolivarian Revolution, which took its name from Chavez's idol, Simon Bolivar, who won independence for
many South American countries in the early 1800s. Chavez redirected much of the country's vast oil wealth,
which increased to a great extent during his tenure, to massive social programs for the country's poor. He
authorized the state owned oil department to pay millions for programs that seek to eradicate illiteracy,
provide affordable food staples and grant access to higher education, among other things. His detractors
accused him of being authoritarian, populist and even dictatorial for having pushed through a constitutional
reform that allowed indefinite re-election. Chavez was also criticized for turning former independent
institutions such as the judiciary, the electoral authorities and the military into partisan loyalists and
concentrating all power in the hands of the executive branch. Chavez’s government has also been accused of
barring political opponents from running in elections and passing laws and decrees that curbed the freedom of
opposition broadcasters and forced them off the air.
Chavez’s death was deeply mourned by regional and international allies such as Ecuador, Cuba, Iran and China.
Cuba loses a benefactor in Chavez, whose provision of an oil lifeline at below-market prices could be at risk
under a new government. Elections will be held in 30 days, and Vice President Nicolas Maduro, whom Chavez
had referred to as his preferred successor in a previous address, will assume the presidency in the interim. A
controversy has surged up following Chavez’s death when Maduro said that scientific proof would prove that
Chavez’s cancer had been injected by ‘imperialist forces’. Venezuelan authorities have said that they will set up
an enquiry to investigate Chavez’s death. Chavez had made the assertion himself in 2011, saying at a military
event that he wondered whether the United States could be infecting Latin American leaders with the illness.
07 Air Asia- Tata budget airline deal receives approval from the Indian
Government
Mar India > Aviation
A bid by Malaysian carrier Air Asia to start a budget airline in India in a joint venture with the Tatas has got
approval from the India’s Foreign Investment Promotion Board. It would be the first foreign company to foray
into the Indian aviation scenario. India's aviation industry, which has suffered major losses, was opened to
foreign investment last year. Foreign companies are now allowed to own up to 49% of a local airline. Air Asia,
which is Asia's largest low-cost carrier, will make an initial investment of 800million rupees and will own 49%
of the new airline, while Tata Sons will have a 30% stake. Arun Bhatia, the owner of investment firm Telestra
Tradeplace, will have the remaining share. Air Asia already operates flights into Indian cities including
Bangalore, Kochi and Chennai.
12 Roman Catholic Cardinals begin conclave to elect the 266th Pope
Mar World > Pope Election
115 Cardinal electors, under the age of 80, have gathered in the Vatican to elect the new Pope to take over as
head of Roman Catholic Church after Pope Benedict abdicated last month. The cardinals will start their
meeting at the Sistine Chapel behind closed doors and cast their first vote on Tuesday, 12th Of March. From
Wednesday, they will vote twice each morning and twice each afternoon. The cardinals will suspend voting on
Saturday if they have not chosen a pontiff by then. A candidate needs a two-thirds majority or at least 77 votes
in order to win. The person chosen as Pope does not have to be one of the cardinal electors, but in practice
now always is. Two eligible cardinals are not taking part in the electoral process, one because of health reasons
and the other because of his involvement in a sex scandal. The elector cardinals come from 48 countries, with
28 out of the 115 cardinals, from Italy. After cardinals cast their votes on paper, the ballots are burned and
smoke pours from a makeshift chimney above the Sistine Chapel. Black smoke marks an inconclusive vote
while white smoke and the tolling of the bells of St. Peter’s Basilica means a Pope has been elected. When the
Pope is chosen, a senior cardinal appears on the balcony of St. Peter’s Basilica and announces the new Pope by
his given name, with his first name translated into its Latin version and then announces the papal name the
GKCA Update
1st to 31st Mar
new leader of the Church has chosen. The papal names most often chosen have been John (23 times), Gregory
(16), Benedict (16), Clement (14), Innocent (13), Leo (13) and Pius (12). The focus of the church, this time, will
be to elect a Pope who can restore the image of the Church which had been tarnished by sexual abuse
scandals worldwide and allegations of corruption at the Vatican Bank.
12 Italy refuses to send back two marines facing trial in fishermen killing case
Mar India > Italy Marines
Italy’s refusal to send back its two marines who are facing trial in a fisherman killing case in India has sparked
strong reaction from all quarters. Prime Minister Manmohan Singh has asked External Affairs Minister Salman
Khurshid to take up the matter diplomatically. The government has summoned the Italian Ambassador Daniele
Mancini to lodge a strong complaint against Italy’s refusal to send back the two marines and the ambassador
might face contempt of court since the ambassador had filed an affidavit in the Supreme Court whereby he
had taken full responsibility for the petitioners to proceed to Italy and ensure their return to India. Senior
advocate and counsel for the Italian marines, Harish salve, indicated that he didn’t support the Italian
Government’s decision not to send back the marines and termed the incident unacceptable.
Background:
The two marines, Massimiliano Latorre and Salvatore Girone, are facing trial for killing two fishermen off the
Kerala coast in February 2012, mistaking them for pirates. Italy claims the incident occurred in international
waters and has been trying to get Latorre and Girone tried in Italian courts, while India contends the shooting
occurred in its own territory. The Supreme Court of India, in February, allowed Latorre and Girone to return to
Italy to vote in the Feb 24-25 national election. It had earlier allowed them to go home for Christmas.
12 Japan extracts world’s first oceanic methane hydrates gas, hopes to resolve
nation’s energy crisis
Mar Science and Technology > Japan
Japan said that it had extracted gas from offshore deposits of methane hydrate — sometimes called
“flammable ice”. The gas extraction from an undersea hydrate reservoir, the world’s first, could be an
alternative source of energy to known oil and gas reserves. This discovery of an alternative energy source
could prove to be vital for Japan which is the world’s largest importer of liquefied natural gas. The Fukushima
Daiichi nuclear crisis has halted Japan’s nuclear energy program and caused a sharp increase in the country’s
fossil fuel imports which has weakened the Japanese economy and led to a trade deficit. Methane Hydrates
contain almost twice the carbon found in other fossil fuels and could change Japan’s energy crisis if
successfully produced.
13 US demands China stop the widespread theft of US cyber data and agree to
cyberspace norms
Mar acceptable
World > US Cyber Theft
The US government demanded on Tuesday, 12th March that the Chinese government block the cyber-attacks
on American corporations and some US government agencies. President Obama’s national security adviser,
Tom Donilon said the US is seeking three things from Beijing: public recognition of the urgency of the problem;
a commitment to crack down on hackers in China; and an agreement to take part in a dialogue to establish
global standards. This was the first public confrontation with China over cyber espionage and came two days
after the Chinese foreign minister, Yang Jiechi, rejected growing evidence that his country’s military was
involved in cyber-attacks on America. The New York Times, three weeks ago, published evidence tying one of
the most active of the Chinese groups to a neighborhood in Shanghai that is headquarters to a major cyber
GKCA Update
1st to 31st Mar
unit of the People’s Liberation Army. The chief of the US military’s newly created Cyber Command told
Congress on Tuesday that he is establishing 13 teams of programmers and computer experts who could carry
out offensive cyber-attacks on foreign nations if the United States were hit with a major attack on its own
networks, the first time the Obama administration has publicly admitted to developing such weapons for use
in wartime. However, a Chinese spokesperson said that China opposes Internet attacks and wants
“constructive dialogue” with the United States and other countries about cyber security issues.
13 Naresh Goyal alters promoter stake for Etihad Deal valuing Jet Airways at
$1.2 billion
Mar India > Aviation
Jet Airways boss Naresh Goyal is putting a multi-phase structured deal that will allow Etihad airways to buy a
substantial stake in Jet Airways valuing the Indian carrier at 1.2 billion. The structuring will also see Goyal and
Etihad jointly hold 75% in the listed carrier, complying with SEBI’s new public shareholding norms. Jet is 80%
held by Tail Winds, an overseas corporate body (OCB) incorporated in the Isle of Man, while Goyal and his wife
directly own just about 11,000 shares or 0.01%. An OCB is an entity in which at least 60% is owned by a nonresident Indian (NRI). Though OCBs are currently not clubbed as part of FDI, the government had granted a
special dispensation to Goyal in the nineties. Goyal is considering transferring whole or part of 6.9 crore Jet
Airways shares from Tail Winds to a company, owned by Goyal directly and which will be the new holding
company of Jet Airways. In the second phase of the deal, Goyal will sell 11% of Jet Airways through an Offer for
sale (OFS) to comply with SEBI’s new norms that cap promoter holding at 75%. After the OFS, Etihad through a
fresh issue of shares will acquire a significant stake in Jet. The fresh issue of shares to Etihad will also help Jet
to reduce its debt.
14 Argentine Cardinal Jorge Mario Bergoglio elected as the 266th Pope
> Papal Election
Mar World
Argentina’s George Mario Bergoglio has been elected as the 266th Pope of the Roman Catholic Church, taking
the name of Francis. The 76-year-old from Buenos Aires is the first Latin American and the first Jesuit to be
pontiff. Pope Francis replaces Benedict XVI, who resigned last month at the age of 85, saying he was not strong
enough to lead the Church. Pope Francis assumes responsibility at a time of turmoil in the church and he’ll be
facing an array of challenges including restoration of the Church’s image which has been tarnished by sexual
abuse scandals worldwide and allegations of fraud at the Vatican Bank.
14 Sundar Pichai to replace Andy Rubin as head of Google’s Android division
and Technology > Google
Mar Science
Google announced that Andy Rubin, who was heading the company’s Android division, will be replaced by
Sundar Pichai. Pichai joined Google in 2004 and currently heads the Chrome and Apps division of Google. With
this transition, Pichai will be leading both Chrome and the Android division of Google. Sundar, originally from
Tamil Nadu India, is a topper from IIT Kharagpur and a silver medal winner for excellence in academics at IIT
Kharagpur. He holds an M.S. from Stanford University and an MBA from the Wharton School of the University
of Pennsylvania. Google CEO Larry Page said that Sundar will do a tremendous job managing Android as he has
a talent for creating products that are technically excellent yet easy to use and gave the example of Chrome,
which has now become one of the most widely used browsers because of its speed, simplicity and security.
GKCA Update
1st to 31st Mar
15 Li Keqiang becomes new Chinese premier, XI Jinping named as Chinese
Mar president
Politics and Government > Chinese Elections
The annual parliament session of China, the National People’s Congress, confirmed Li Keqiang as the new
Chinese Premier on Friday, March 15th, replacing former Premier Wen Jiabao. Xi Jinping who had been named
the Communist Party’s General Secretary last November and was handed the leadership of the Central Military
Commission has been made the new President. Mr. Li has been elected for a 5 year term but, like his
predecessor, would be expected to spend a decade in office. Li’s appointment as the Chinese Premier was
confirmed by 3000 Legislators at the National People’s Congress. He received 2,940 votes to three, with six
abstentions. As premier, he will oversee a large portfolio of domestic affairs, managing China’s economic
challenges, environmental problems and the country’s urbanization drive. The son of a local official in China’s
Anhui province, Li rose through the party ranks through the Communist Youth League. Li became China’s
youngest provincial governor by assuming responsibility of Henan province and from 1998-2004 served as the
governor of the province, and the province’s party secretary and then the Liaoning party secretary which made
him first-in-charge in that province. A PhD in Economics, Li is a leading figure of the "fifth generation" (Xi-Li
Administration) of Communist Party leadership and from 2008 to 2013, served as the Executive Vice-Premier
under then-Premier Wen Jiabao. Li Keqiang has already taken a new approach by eliminating some ministries
and increasing the size of others paving the way for a more streamlined government.
19 DMK pulls out of UPA government over the issue of war crimes on Eelam
Tamils in Sri Lanka
Mar Politics and Government > UPA
DMK has pulled out of the United Progressive Alliance (UPA) over the issue of alleged war crimes on the Eelam
Tamils in Sri Lanka. DMK had demanded that the government should adopt a resolution in Parliament
supporting two amendments to the U.S. sponsored draft resolution against Sri Lanka in the United Nations
Human Rights Council (UNHRC). The first amendment should state that genocide and war crimes had been
committed on Eelam Tamils by the Sri Lankan Army and administrators and a second amendment for the
constitution of a credible, independent international commission of inquiry into the allegation of war crimes in
the draft resolution. DMK chief Karunanidhi said that continuing in the UPA government would be an injustice
to Tamils as the government was not adopting the resolution in Parliament and taking a tough stance on the
Sri Lankan government. He also ruled out giving outside legislative support to the UPA.
Meanwhile, the Tamil Nadu government has shut down 525 engineering colleges affiliated to Anna University
indefinitely following massive protests by students across the state against human rights violations in Sri
Lanka. Students have also been told to vacate the college hostels. Students said the government’s decision to
shut colleges was aimed at dispelling the protests. The Tamil film industry has also united for the cause in a
one-day fast.
19 Reserve Bank cuts REPO rate by 25 basis points, lending rates might remain
unchanged
Mar Economy > Reserve Bank of India
The Reserve bank of India (RBI) has reduced the repo rate under the liquidity adjustment facility (LAF) by 25
basis points from 7.75% to 7.5% and has left the cash reserve ratio (CRR) unchanged at 4%. REPO rate is the
rate at which banks borrow from RBI and CRR is the portion of deposits that banks have to mandatorily
maintain with the central bank. RBI has reduced the REPO rate a 2nd time this year but has warned that there
is very little scope for another reduction. However, with the reduction of the REPO rate, a reduction in lending
rates by banks seems unlikely since the RBI had not reduced the CRR which could have helped banks to bring
GKCA Update
1st to 31st Mar
down their cost of funds. RBI said that although financial market conditions have improved since the third
quarter policy review in January, global economic activity has weakened and domestic growth has decelerated.
20 Cyprus’s Parliament rejects EU-IMF bailout tax on bank deposits, sparks
fears of similar scenario in other debt-ridden EU nations
Mar Economy > Cyprus Bailout
Cyprus’s Parliament rejected a proposal on 19th March for levying taxes on bank deposits as a condition for a
EU bailout aimed at saving Cyprus from bankruptcy. The rejection of the proposal by Cyprus came as a surprise
for the 17-nation Eurozone, since lawmakers in Greece, Portugal, Ireland, Spain and Italy had accepted
unpopular austerity measures in the past to secure European aid. Under the bailout deal reached at the
weekend, the troika of the European Union, European Central Bank and International Monetary Fund were to
provide Cyprus with 10 billion euros ($13 billion) on condition the island raises another 5.8 billion euros by
imposing a tax of 9.9 percent on all Cyprus bank deposits, a move that has triggered outrage among the
common people and MPs in Cyprus. The Cypriot government backtracked, and on Tuesday dropped the
proposed tax on savings below 20,000, while keeping it at 6.75 percent for deposits of 20,000-100,000 euros
and 9.9 percent for those above 100,000. But this move of the Cypriot government too was rejected in the
Cyprus Parliament in a vote, plunging the Eurozone into uncertainty and leaving Cyprus looking for alternative
sources of financing. The Cyprus bailout crisis also triggered fears that the EU might try to impose similar
conditions on other debt-ridden countries like Spain and Italy. This would aggravate an already bad economic
scenario in these countries as it would increase bank shortfalls since savers would resort to fewer deposits,
which would mean a worse deposit-to-liability ratio. This might lead to a continent-wide crisis of the kind
observers have feared since the euro zone started its slow-motion collapse back in 2009.
21 Obama visits Middle East, stresses on key diplomatic issues
> US-Middle East Relations
Mar World
President Barack Obama’s March 2013 visit to the Middle East was successful in many aspects.
Reconciling Israel – Turkey Relations: He got an end to the bitter 3 year conflict between the USs’ most
important allies in the Middle East. Obama got Israeli Prime Minister Benjamin Netanyahu to talk to the
Turkish Prime Minister, Recep Tayyip Erdogan, and apologize for deadly errors in Israel’s 2010 raid on a Turkish
ship that was trying to bring aid to Palestinians in Gaza.
Change in Stance on Talks: While Obama criticized the Israeli government’s controversial policy of building
new settlements in disputed territories and urged young Israelis to pressure their leaders to seek peace with
Palestinians he also pushed the Palestinians to resume talks.
Jordan: The US will provide an additional $200 million in aid to help Jordan with the burden of caring for
460,000 Syrian refugees who have taken shelter in the country.
Syria: Obama reiterated his refusal to give US military assistance to the Syrian opposition movement but said
that the use of chemical weapons, if proved, could prove to be a big game changer. This was in the context of
an alleged chemical weapons attack in Syria on a village near Aleppo which killed 25 people and injured many.
It was unclear as to who was responsible for the chemical attack, the Syrian government or the armed
opposition.
GKCA Update
1st to 31st Mar
21 Lockheed Martin to upgrade D-Wave’s Quantum computer on a commercial
scale
Mar Science and Technology > Quantum Computing
Lockheed Martin, a major American military contractor, is taking commercial computing to the next level by
planning to use a quantum computer, as part of its business. Quantum computing which involves quantum
mechanics is a huge diversion from traditional computing. Though D-Wave has still not proved to outside
scientists about its mastery over the myriad problems associated with quantum computing, the design, if it
performs perfectly could be used to supercharge even the most powerful systems, solving some science and
business problems millions of times faster than can be done today. Lockheed would use the quantum
computer to create and test complex radar, space and aircraft systems. D-Wave’s quantum computers could
find their use in many other applications. Cancer researchers could rapidly analyze vast amounts of genetic
data. The technology could also be used to determine the behaviour of proteins in the human genome.
Researchers at Google have worked with D-Wave on using quantum computers to recognize cars and
landmarks, a critical step in managing self-driving vehicles.
21 Supreme Court sentences Sanjay Dutt to 5 years in prison for his connection
with the 1993 Mumbai blasts
Mar India > Sanjay Dutt
The Supreme Court has ruled that Sanjay Dutt must return to prison to serve another three and a half year
sentence, the remaining of his total sentence of five years. In 2006, a special anti-terror court had convicted
100 people for the blasts. 12 of the convicts were given death penalty and 20 others were given life sentence.
Dutt was convicted of buying weapons from underworld don Dawood Ibrahim’s aide Abu Salem and others
convicted of the 1993 bombings in Mumbai. He spent 20 months in jail. The actor has been on bail since 2007
when he appealed against his original sentence of six years. On 21st March, Thursday, the Supreme Court
reduced his sentence to five years. The Supreme Court also upheld the death sentence of Yakub Memon, one
of the main convicts, while death sentences of 10 others were commuted to life. Dutt, originally charged with
criminal conspiracy and possession of illegal weapons, was found guilty of illegally possessing a rifle and a
pistol but cleared of conspiracy. Dutt had previously said in his defence that the weapons were necessary in
order to defend his family during the Hindu-Muslim rioting of 1993 which happened in the aftermath of the
Babri Masjid demolition in Ayodhya by Hindu zealots. There is nearly 100 crores worth of films pending in
Bollywood on Dutt’s name and the Bollywood fraternity has expressed shock at the Supreme Court’s verdict.
The court has asked Dutt to surrender in 4 weeks.
22 Cyprus secures bailout to avoid bankruptcy
Mar Economy > Cyprus Bailout
Cyprus secured a 10 billion euro ($13 billion) package of rescue loans, saving the country from a banking
system collapse and bankruptcy that could have destabilized the entire Eurozone. In return for the bailout,
Cyprus must drastically shrink its outsized banking sector, cut its budget, implement structural reforms and
privatize state assets, he said. Under the plan, Cyprus' second-largest bank, Laiki, will be restructured and
holders of bank deposits of more than 100,000 euros there will have to take losses. The measures are likely to
deepen the recession in Cyprus and lead to more job losses. Earlier, the European Central Bank (ECB)
threatened to cut off crucial emergency assistance to the country's banks if no agreement was reached which
forced Cyprus to agree to the Eurozone’s bailout plan after 10 hours of negotiations in Brussels between
Cypriot officials and the troika of creditors involving the International Monetary Fund, the European
Commission and the ECB.
GKCA Update
1st to 31st Mar
22 Italian marines come back to face trial in India
and Government > Italian Marines
Mar Politics
In a major breakthrough, the Italian government has reversed its earlier decision and sent back the two
marines facing trial for the murder of two fishermen off the Kerala coast. Earlier, diplomatic tensions had
escalated between the two countries and the Supreme Court had said that the Italian Ambassador could not
leave the country and might face contempt of court. The Italian authorities reversed their earlier stance after
the Indian government assured them that the two marines would not be facing death penalty and their
fundamental rights would be protected. Prime Minister Manmohan Singh welcomed the Italian Government’s
decision and said that the integrity and dignity of the Indian judiciary had been upheld.
23 Financial Sector Legislative Reforms Committee (FSLRC) calls for 2-regulator
Mar structure
Economy > Financial Regulators
The Financial Sector Legislative Reforms Committee (FSLRC) has called for unifying the Securities and Exchange
Board of India (SEBI), Pension Fund Regulatory and Development Authority (PFRDA), Insurance Regulatory and
Development Authority (IRDA) and Forward Markets Commission (FMC) into a single regulator. The Reserve
Bank of India (RBI) should remain the monetary authority regulating banks. The proposed regulatory structure
will be governed by the Financial Regulatory Architecture Act that will ensure a uniform legal process for the
financial regulators. The finance ministry will unify the regulatory structure before modifying the legislative
structure. The committee has also recommended that the financial sector laws be reviewed every 10 years and
appropriate attention be given to debt management and setting up of a financial redressal agency and a
financial stability and development council. The report has also proposed doing away with multiple agency
structure for foreign capital inflows and converting the Securities and Appellate Tribunal into a Financial
Appellate Tribunal, which will hear appeals against both RBI and the unified regulator.
27 Major depositors in Cyprus banks face losses, extensive controls imposed on
movement of capital
Mar Economy > Cyprus Bankruptcy
Cyprus’s central bank has confirmed that major depositors will lose 60 percent of savings over 100,000 Euros.
The bank would give depositors shares worth just 37.5 percent of savings over 100,000 euros. The rest of such
holdings might never be paid back. The assets of Laiki, Cyprus’s second largest bank will be transferred to Bank
of Cyprus. At Bank of Cyprus, about 22.5 percent of deposits over 100,000 euros will attract no interest. The
remaining 40 percent will continue to attract interest, but will not be repaid unless the bank does well. Capital
controls were also imposed on the Euro, the first time since it was launched a decade ago. Cypriots and
foreigners are allowed to take only up to 1,000 euros in cash when they leave the island. The imposition of
capital controls is seen as an unwelcome measure for the European Union founded on the principle of free
movement of capital and payments. The capital controls might pave the way for a second class ‘Cyprus Euro’
with funds trapped within the country less valuable than euros that can be freely spent abroad as well as
partial breakup of the Eurozone with a euro held in Cyprus no longer worth the same as a euro held in
Germany.
GKCA Update
1st to 31st Mar
Bank Specific
15 Finance Ministry and RBI investigating accusations of money laundering
against ICICI Bank, HDFC Bank and Axis Bank
Mar Banking Fraud
The Finance Ministry and RBI are investigating money laundering accusations against top private sector lenders
ICICI, HDFC and Axis bank after an independent journalist alleged that he had video footage of the lenders’
branch employees suggesting to an undercover reporter methods to launder money. ICICI Bank, HDFC Bank
and Axis Bank have initiated their own investigations but have strongly defended their internal controls to
prevent money laundering. ICICI Bank has already suspended 18 officials pending investigations and Axis Bank
and HDFC Bank have hired an independent audit firm to conduct a forensic inquiry into the allegations.
22 ICICI, HDFC offer immunity to staff who expose unfair practices
Mar Bank News
Although the Reserve Bank of India (RBI) has dismissed money laundering allegations made about ICICI and
HDFC banks by a sting operation, chief executives at these banks have offered to provide immunity to staff
who expose wrongdoings and violation of guidelines by colleagues. Managing Directors of HDFC, ICICI and Axis
banks have said that there would be zero tolerance for money laundering activities by bank staff. A review of
the relevant systems and processes and an audit of some of the branches and the corresponding back-end
processes at each of the three banks is also being undertaken.
Corporate
12 Oil and Gas likely to contribute Wipro Rs. 5,400 crore in annual revenue
Mar Wipro
The energy and utilities sector which, usually, is not a big contributor for the IT sector, is likely to contribute $ 1
billion (Rs. 5,400 crore) to IT services provider, Wipro in annual revenue. In April 2011, Wipro had acquired the
oil and gas practice of US-based Scientific Applications International Corp (SAIC) for about $150 million and this
has made Wipro’s energy and utilities vertical, the fastest growing business unit after it contributed about
$900 million or 15% of total sales. In the three months to Dec 31, the unit had grown 18% compared to a year
ago, 3 times faster than any business unit in Wipro. A major shift in the energy industry from crude oil to shale
gas and the acquisition of SAIC has helped Wipro expand its presence to the US. Beyond basic IT support
services, Wipro now works with oil companies to analyze the large amount of data generated by sensitive
sonar probes sent to oil wells to generate intelligence on the presence of oil or gas. Wipro currently has BP and
Royal Dutch Shell as its clients which are among the world’s second and third largest oil companies.
12 Reliance Big Entertainment buys gaming companies in japan and Korea
Mar Mergers and Acquisitions
Reliance Big Entertainment has acquired two major gaming companies In Japan and Korea, which are two of
the world’s top five mobile gaming markets. While the Korean mobile gaming market is estimated at about $1
billion, the Japanese gaming market size is about $5.5 billion. Reliance Big Entertainment has acquired a 100%
stake in the gaming division of Funnel Japan along with its team and all the games under development. It has
created a wholly owned subsidiary Reliance Big Entertainment Japan Co Ltd, in the region with the buyout. It
has also acquired a 51% stake in Busan, Korea-based gaming studio Bluesom Inc, which will develop games for
GKCA Update
1st to 31st Mar
both Japan and Korean markets. Both acquisitions are at an estimated consideration of under $5 million (about
27 crore). In India, Reliance Entertainment Digital operates its mobile gaming business under the brand Zapak.
Reliance said that with the present acquisitions and expected acquisitions in China and Taiwan over the next
12 months, it aims to be among the top 10 leaders in the international gaming markets of the US, UK, China,
Japan and Korea.
19 Italian Fashion Group Benetton’s annual retail sales crossed Rs. 1,000 crore
India
Mar in
Benetton
Italian fashion group Benetton's annual retail sales have crossed Rs 1,000 crore in India, making it the first
international fashion brand to cross that mark in India. Benetton had grown rapidly since it snapped a local
joint venture with DCM, nine years ago. At that time Benetton had sales of only about $8 million as compared
to figures of more than $200 million now. India now accounts for about 8% of Benetton's $2.5 billion global
sales, making it the largest market for Benetton outside Europe. Benetton chairman Alessandro Benetton said
that Benetton’s strength lies in combining global fashion with local sensibilities. At present, the group controls
prices by sourcing 96% of sales locally, and has left behind rivals like Levi's (Rs 800cr) and Marks & Spencer (Rs
550cr). Benetton will likely face tough competition from global rivals as more and more foreign retailers are
attracted to India since FDI norms now allow single-brand retailers to own 100 percent of the store operations.
Benetton will now move into tier-III and tier-IV towns like Dimapur, Bhavnagar and Kota. Benetton owns only
10% of its 500-odd exclusive stores in the country and has sold most of its full - owned stores to franchisees.
21 Infosys, TCS compete for Rs. 200 crore Corporation bank contract
Mar Software Industry
Infosys and TCS are competing to acquire the Rs. 200 crore technology services contract from public sector
lender Corporation Bank (CorpBank). The contract is for upgrading the bank's core banking software from the
current version made by Chennai-based software company Polaris Financial Technology. TCS and Infosys both
have their own core banking software called Bancs and Finacle respectively. With 1.6 crore customers and
1,600 branches, Mangalore-based Corporation Bank has been among the first public sector banks to adopt CBS
technology around 2003. The bank expects its customer base to grow to 5.8 crore by 2020 and its network to
expand to 3,500 branches during the same period. Compared to TCS which gets a major chunk of its business
from the domestic market, Infosys has only about 2% of its $7 billion revenues from the domestic market. For
TCS, India market contributes about 7.5% of its $10.8 billion sales.
23 Department of telecommunications rejects Bharti Airtel, Vodafone’s
Mar applications for license renewal
Telecommunications
The Department of Telecommunications (DoT) has rejected the applications of Bharti Airtel and Vodafone for
renewal of their licenses in circles like Delhi, Mumbai and Kolkata when they expire in November this year. The
DOT said that on expiry of the license, only a new unified license would be given to operators while spectrum
would have to be obtained through a market-related process. The licenses of Bharti are coming up for renewal
in November for Delhi and Kolkata, while Vodafone's due for the Mumbai circle. The DoT had asked companies
like Bharti and Vodafone to participate in the auctions which were slated for March 11, to procure spectrum,
but they did not participate in the process. Both companies hold the 900-MHz spectrum in these circles, which
the government wanted to refarm from them and put up for auction at a base price that was double of the
1,800-MHz spectrum band. The companies had protested against this move of the DOT and moved the Delhi
High Court.
GKCA Update
1st to 31st Mar
23 Maruti aims to expand its utility Vehicles segment to increase market share
Mar Maruti
Following on the success of its latest offering Ertiga MPV, which has become the country's largest selling model
in the UV space, Maruti Suzuki is planning to launch new cars in the fast moving utility vehicles space to
expand its market share in India. Maruti Suzuki, which is one of the leading players in the small car segment,
said that competition in the hatchback segment has intensified and the company, in order to increase or
maintain the market share plans to expand its UV offering. Maruti has consistently witnessed a demand for
diesel models such as Swift, DZire and Ertiga. As per Society of Indian Automobile Manufacturers data, car
sales in the country declined 4.64% to 17.14 lakh units in the April-February period while sales of utility
vehicles grew 55% to 4.99 lakh units from 3.23 lakh units of the last fiscal.
26 Yahoo to buy start up run by 17-year old entrepreneur
Mar Yahoo
Yahoo announced that it would buy London based 17-year old entrepreneur Nick D'Aloisio’s start-up Summly,
the maker of a mobile app for reading content on the small screen of smartphones. The mobile application
condenses content so readers can scroll through more information more quickly. The deal is Yahoo’s fifth small
acquisition in the past five months and is part of CEO Marissa Mayer's effort to attract more engineers with
expertise in building services for smartphones and tablet computers, an important technological area, which
she felt Yahoo had been neglecting until now.
26 Ericsson sues Micromax for patent infringement, claims about Rs 100 crore
in damages
Mar Ericsson
Ericsson, the world’s largest mobile network infrastructure player has moved the Delhi High Court against
mobile handset manufacturer Micromax Ltd. for patent infringement claiming about Rs. 100 crore in damages.
Ericsson alleged that Micromax has refused to enter into a licensing agreement covering its patented
innovations across several wireless technology standards such as GSM, EDGE and 3G. If the Delhi High Court
upholds Ericsson’s claim, it might significantly undermine the low-cost business strategy of several domestic
handset and tablet companies. The claimed damages make it the largest patent suit in India's IT and telecom
space. Despite exiting the handset space, Ericsson continues to be among the biggest patent-holders in the
mobile phone industry along with Nokia, Qualcomm and Samsung.
26 Foxconn posts record quarterly profit on growing demand for Apple
products
Mar Foxconn
Taiwanese firm, Foxconn Technology has posted record quarterly profits of $ 1.2 billion in the October to
December quarter helped by growing demand for iPhones and iPads. Foxconn is the world's biggest contract
electronics maker and Apple is one of its biggest clients. Orders from Apple account for almost half of
Foxconn's total revenue. In the October to December quarter, Apple had sold 47.8 million iPhones, up from 37
million a year earlier. Meanwhile, the launch of iPad mini, also boosted sales of its tablet PCs - it sold 22.9
million iPads, compared with 15.4 million in the same period in 2011.
GKCA Update
1st to 31st Mar
27 Prudential fined $30m over its bid to buy AIA
Mar Prudential
The Financial Services Authority (FSA) has fined Insurance major Prudential $30 million over its 2010 bid to buy
AIA, an Asian subsidiary of US insurer AIG. The FSA has also censured Tidjane Thiam, Prudential's chief
executive. FSA said that Prudential had failed to inform it of its plans to buy AIA and FSA should have had more
time to decide on whether to approve the deal or not on regulatory grounds since Prudential's proposed
£14.5bn rights issue to fund the purchase would have significantly changed the company's risk profile and
might have impacted upon the stability and confidence of the financial system in the UK and abroad.
Prudential eventually failed in its $35.5bn (£23bn) attempt to buy AIA after shareholders vetoed the deal,
fearing the purchase price was too high. The incomplete deal cost shareholders £377m.
India
12 Delhi Gang Rape case main accused Ram Singh found hanging in Tihar Jail
Mar Delhi Gang Rape Case
Ram Singh, the main accused in the Delhi Gang Rape case, was found dead, hanging from a grill in the ceiling in
his cell in Tihar Jail on Monday morning, hours before he was supposed to appear in Saket court for the incamera trial proceedings. The death which appears to be a case of suicide has raised questions about Tihar’s
security arrangements. Both Singh’s lawyer and family claimed that he had been murdered by his cell inmates.
Questions rose on the suicide as it seemed impossible for Singh to reach the ceiling to tie the rope without
waking up his 3 fellow inmates. A magisterial inquiry has been ordered and Tihar authorities have also begun
an internal probe into the death.
Meanwhile, the brother of the Delhi gang rape victim, who succumbed to injuries in December last year, has
been promised a seat in Indira Gandhi Rashtriya Uran Akademi (IGRUA) in Rae Bareli after the government
expressed its inability to fulfill his first demand for admission to the National Defence Academy (NDA), Pune,
on the ground that its admission rules do not allow for a student to be taken in on compassionate grounds.
13 Government to give 1200 crores to drought hit Maharashtra
Mar Maharashtra Drought
The government has decided to give 1200 crores to Maharashtra to improve the drought scenario in the state.
Maharashtra was hit by drought, the worst in four decades, after receiving lower rainfall during the monsoon
season June to September 2012. There has been an acute shortage of drinking water. Nearly 12,000 villages in
the state have been affected by drought and the state government has deployed nearly 2,500 tanker trucks to
supply drinking water. Maharashtra is India’s biggest sugar and pulses producer and the second biggest
producer of cotton and soybean and the drought will hamper the agricultural output of the state to a great
extent in the present year.
18 60th National Film Awards declared
Film Awards
Mar National
The Directorate of Film Festivals announced its annual National Film Awards to honor the best Indian films of
2012. Irrfan Khan won the Best Actor award for his powerful performance in Tigmanshu Dhulia's 'Paan Singh
Tomar' and Marathi actress Usha Jadhav won the Best Actress award for Marathi film 'Dhag'. 'Paan Singh
Tomar' also won the best Hindi feature film award. Shivaji Lotan Patil won the Best Director Award for Marathi
film 'Dhar'. Vicky Donor and Ustad Hotel shared the award for best popular film for providing wholesome
GKCA Update
1st to 31st Mar
entertainment. Prasoon Joshi won the best lyricist award and Pt. Birju Maharaj won the best Choreography
award. Nawazuddin Siddiqui and Rituporno Ghosh were declared the joint winners for the Best Jury award.
Bedabrata Pain’s ‘Chittagong’ won the Indira Gandhi Award for Best Debut Film of a Director. Chittagong also
won the award for best song and Shankar Mahadevan won Best Playback Singer for ‘Bolo Na’ from the same
film.
19 China’s satellite deals with Sri Lanka, Maldives and Bangladesh raise security
concerns In India
Mar Chinese Satellite Deals
China’s collaboration with neighbouring countries’ space related programmes has raised a concern in India
with the possibility that China might be encircling India strategically with large communication networks. China
is helping build a space academy and satellite ground station in Sri Lanka. A Sri Lankan firm has struck a deal
with Chinese state-owned companies to launch Sri Lanka’s maiden telecom satellite. Maldives and Bangladesh
are both in talks with China for building or launching satellites for them. The Indian department of space,
ministries such as information technology, information & broadcasting, and external affairs, along with
multiple intelligence agencies, are likely to examine the situation and formulate a plan of action to match
China’s space diplomacy.
19 B-school placements hit as hiring slows down
Mar B-School Placements
The global economic slowdown seems to have affected the hiring scenario in B-schools this placement season.
Many management students are left without job offers and the placement procedures are taking longer than
usual. From the prestigious management institutes such as the IIMs to other top and mid-tier management
institutes, everyone is facing the impact of the slow hiring season. B-schools like Great Lakes Institute of
Management and Loyola institute of Business Management have called a lot more companies to campus this
year in order to ensure 100 percent placements.
25 Government to set up tough real estate regulator
Estate
Mar Real
The Ministry of housing is trying to introduce a tough real estate regulator Bill in the parliament, aimed at
protecting home buyers with provisions of even jail term for developers for putting out misleading
advertisements about projects. . The legislation will clearly define 'carpet area', and private developers will not
be allowed to sell houses or flats on the basis of ambiguous 'super built up area'. Private developers can give
advertisements or start a housing project only after getting all projects registered before sale of property and
after getting all necessary clearances from a real estate regulator. The developers will also have to maintain a
separate bank account for a particular project and will not be allowed to divert the money for other projects.
The Bill aims to address major concerns of buyers about incomplete or fraudulent land acquisition and delays
and cost escalation. The Bill has faced tough opposition from private developers and builders and has been
pending since 2009.
GKCA Update
1st to 31st Mar
Others
16 Mark Zuckerberg becomes highest rated CEO by employees
Mar Mark Zuckerberg
Mark Zuckerberg topped Glassdoor’s list of the highest rated Chief Executive Officer (CEO) by employees.
Zuckerberg got a 99% approval, a 14% jump over last year. Glassdoor, bases its rankings on anonymous
reviews by employees. Comparatively, some of the most famous CEO’s such as Google CEO Larry Page was
ranked at No. 11 with 95%. Amazon's Jeff Bezos was No. 16 with 93%. Apple CEO Tim Cook came in at No. 18
with 93%. However, Glassdoor had not clearly revealed the methodology of the study or the number of people
who had been surveyed.
19 Herbal Medicines behind kidney failure and bladder cancer in India and
China
Mar Herbal Medicines
Scientists from King's College London have found that many herbal medicines used for a wide range of
conditions including slimming, asthma and arthritis are derived from a botanical compound containing
Aristolochic acids. Researchers have found evidence to suggest that herbal medicines containing Aristolochic
Acids are widely used in India, and if taken in sufficient amounts, can lead to Aristolochic Acid Nephropathy
(AAN), a type of kidney failure and chronic kidney cancer. These products are now banned in the US and many
European countries, but herbs containing these toxic acids can still be bought in China, India and other
countries in Asia, and are also available worldwide over the internet. The study will help to raise awareness on
the issue and India must exercise better regulation on herbal medicines and also assessment of patients with
chronic kidney disease and kidney cancer for the presence of Aristolochic Acids.
19 IIM Ahmedabad Graduate Nirmal Kumar drives innovative auto rickshaw
benefitting both auto drivers and commuters
Mar business
Placement Scenario
Nirmal Kumar, a 2008 IIM Ahmedabad has come up with an innovative auto rickshaw model that has
benefitted commuters and auto drivers alike. Kumar manages a fleet of 10,000 autos In Gujarat under the
brand name ‘G Auto’. When Kumar first started, he asked auto rickshaw drivers parked outside the IIM campus
to give him in writing that they would charge proper fares in exchange for free newspapers and a health-cumpersonal insurance cover, for which he spent his own money. The idea gained success and now G auto has
funding from some corporates in Gujarat as well as from government funds sanctioned by Chief Minister
Narendra Modi. The autos also carry advertisements which help in generating a sizeable amount of the
revenue. The drivers get benefits like subsidized health care and education for their wards, besides the
insurance. The vehicles are fitted with GPS, which help in better monitoring of the vehicles and computerized
meters which cannot be tweaked. Customers can request a G auto from a call centre or through a free mobile
phone app. G Auto was voted second in the SMART Mobility Awards by the University of Michigan on
transportation solutions. Recently, the union urban development secretary has written to all the states to
emulate the model. Kumar recently met Delhi chief minister Sheila Dixit with expansion plans in Delhi. Kumar
has formed a trust by the name of ‘Nirmal Foundation’ which pays the salary of Kumar and 21 of his
employees. Nirmal foundation also ensures that the auto rickshaw drivers get more trips with the help of the
call centre facility to compensate for the low margins on wages.
GKCA Update
1st to 31st Mar
Politics & Government
05 Former Maldives President Nasheed arrested by police
Mar Indo-Maldives Relations
Former Maldivian President Mohamed Nasheed was arrested by the Maldives police after a warrant was
issued by a court in connection with his trial over the arrest and subsequent detention of a judge during his
reign. The arrest came less than a fortnight after Nasheed left the Indian High Commission where he took
refuge for 11 days to escape two arrest warrants issued by the court earlier. Nasheed had called it a politically
motivated trial to bar him from contesting in the presidential election. He left the Indian High Commission on
February 23 after India received assurances from Maldivian authorities that Nasheed would be free to
campaign for Presidential elections. Nasheed’s arrest is seen as a blow to the diplomatic efforts of the Indian
government, which is seen as a regional power, to resolve the political standoff between the Maldives
government and the ex-president. In December 2012, the Maldives government had taken over the Male
Airport from India’s GMR consortium breaching the agreement inked by the previous government headed by
Nasheed.
05 Rahul Gandhi says he doesn’t want to marry and become a Status Quoist,
in race for PM’s job
Mar nor
Rahul Gandhi
Rahul Gandhi , in a rare conversation with Congress MPs and journalists, said that he didn’t wish to get married
and have children, because that would make him a Status Quoist and he would like his children to take his
place. Rahul said that he did not want any vested interest in the status quo to destabilize his mission to
democratize the party and decentralize its decision- making. He also said that he was not in the race for the
Prime Minister’s post, despite his recent appointment as the Congress Vice-President which is widely regarded
by many as an essential precursor to become the party’s prime ministerial candidate in the upcoming Lok
Sabha elections.
07 Afghanistan demands blacklisting of ISI as a Terrorist entity
Mar Afghan-Pak Relations
The Afghan national Security Council has strongly recommended that Pakistan’s Inter-Services Intelligence
should be declared a terrorist entity. Afghanistan's deputy national security adviser Rahmatullah Nabil said
that Afghanistan would continue its efforts to build peace but added that there was not much hope of
cooperation from the Pakistani side. This was the most public outburst from the Afghan government after the
chief of the Pakistan Ulema Council Tahir Mehmood Ashrafi declared that the Taliban insurgency in
Afghanistan was "legitimate". Afghanistan president Hamid Karzai also echoed Nabil’s concern and said that
Pakistan had not taken any practical steps to tackle terrorism in Afghanistan coming from Pakistan.
Afghanistan’s outburst is supposed to strain peace process with Pakistan for support on a reconciliation
programme with the Taliban.
08 North Korea announces scrapping all non-aggression ties with South Korea
Mar North Korea
North Korea announced that it was scrapping all non-aggression ties with South Korea, closing its hotline with
Seoul and shutting their shared border point after the US and Seoul launched a joint military exercise. The
declaration also followed on the steps of a fresh round of sanctions imposed by the UN on North Korea for its
nuclear test last month. Earlier, North Korea had said that it had the right to carry out a preemptive nuclear
GKCA Update
1st to 31st Mar
strike. The US warned North Korea against its threat to carry out a nuclear strike and urged China, which is the
only ally of the North, to join in further isolating North Korea.
21 Chidambaram forces CBI to call off raids at M.K. Stalin’s house
Raid
Mar CBI
The CBI, on March 21 , carried out raids at 19 places across Tamil Nadu including DMK chief M Karunanidhi's
st
son M K Stalin’s residence. The raid has created a stir in the political arena since the raid happened only two
days after the DMK pulled out of the United Progressive Alliance (UPA). The Congress ministers in the UPA
including P Chidambaram and Kamal Nath strongly disapproved of the CBI searches, as the Centre said that it
was not aware of the raids. Chidambaram conveyed his disapproval of the raid to the Minister in-charge of CBI,
V Narayanasamy, who immediately called off the raid. The DMK termed the CBI raid a “political vendetta”,
since the DMK had pulled out of the UPA coalition on March 19th.
22 Government approves 12 FDI proposals worth over Rs 2,609 crore
Mar FDI
The government has approved 12 FDI proposals, totaling over Rs 2,609 crore. The biggest proposal that was
cleared was Ahmedabad-based Claris Otsuka Ltd's plan to hive off its Infusions business into a new joint
venture with FDI worth Rs 1,050 crore. The Foreign Investment Promotion Board (FIPB) also cleared the
proposal of Decathlon Sports India's proposal for induction of foreign equity worth Rs 700 crore to engage in
single brand retail. The board, however, deferred nine proposals and rejected one. The proposals which were
deferred include that of Alliance Insurance Brokers to induct foreign equity to carry out the business of
insurance broking. Mumbai-based Erica Healthcare's proposal to increase foreign equity was rejected by the
FIPB.
31 Central African Republic leader Djotodia announces caretaker government
Mar Central African Republic
Michel Djotodia, the leader of the Seleka Rebel Coalition, who had declared himself as the president of the
Central African Republic (CAR) last week after ousting Presdent Francois Bozize, has announced a caretaker
government in which he controls several ministries. The interim government will consist of a 34-member
cabinet where Djotodia would act as defence minister while several members of his Seleka rebel coalition
would run other ministries. Another eight members of the former opposition would also be in the cabinet. The
rebels had joined a power-sharing government in January after talks brokered by regional leaders to end a
rebellion they launched last year. But the deal quickly collapsed, with the rebels saying their demands,
including the release of political prisoners, had not been met. CAR, which has a population of about 4.5 million,
has been hit by a series of rebellions since independence from France in 1960.
Science and Technology
21 Astronomers release pictures of just 3,80,000 years old universe, appears to
be fatter and lumpy
Mar Universe
Astronomers of the European Space Agency released the latest and most exquisite baby picture yet of the
universe on Thursday, one that showed it to be 80 million to 100 million years older and a little fatter than
previously thought, with more matter in it and perhaps slightly lopsided. Recorded by the European Space
GKCA Update
1st to 31st Mar
Agency’s Planck satellite, the image is a heat map of the cosmos as it appeared only 370,000 years after the Big
Bang, showing space speckled with faint spots from which galaxies would grow over billions of years. The map
shows an universe that seems to have endured an explosive burp known as inflation, which was the dynamite
in the Big Bang. The patterns within the microwaves detected by Planck date from less than a trillionth of a
second after the Big Bang, when the universe is said to have undergone a violent burst of expansion that set
cosmic history on its present course. These patters form Planck’s most important gatherings. The new data
have allowed astronomers to change their existing model. It now seems the universe is 13.8 billion years old,
instead of 13.7 billion, and consists by mass of 4.9 percent ordinary matter like atoms, 27 percent dark matter
and 68 percent dark energy.
22 India’s first Mars Orbit Mission might prove to an exciting ground for Indocollaboration
Mar US
US-India Collaboration
The United States feels that India’s Mars orbit mission slated for October this year, can prove to be an
interesting ground for collaboration between the two countries in this field. In the US-India Civil Space Joint
Working Group held on March 21st, Geoffrey Pyatt, Principal Deputy Assistant Secretary, Bureau of South and
Central Asian Affairs, said that India and the US should seek to increase commercial space cooperation and
create opportunities for companies of both countries. The US-India Science and Technology Endowment Fund,
established in 2009 and with an annual budget of USD 2-3 million was set up to promote commercialization of
innovative technologies between the two countries, boost job opportunities in the sector and work on some of
the big challenges across the world.
23 Indian Start Up among 23 teams competing for Google Lunar X Prize to land
on the moon
Mar Lunar X
Rahul Narayan, a Delhi-based IT professional has started team Indus, a Delhi-based startup that is the only
entrant from India in the Google Lunar X prize competition. With a prize of $ 30 million, the competition will
reward the first privately funded team to softland on the moon, travel 500metres and transmit back to earth,
at a distance of nearly 4 lakh km, pictures, video and data. The target must be achieved before December 31,
2015. Narayan’s venture is modest in comparison to other entrants in the competition that are superbly
funded and staffed. But Team Indus has an advantage in the form of technical knowhow and everything that is
available in premier institutions and engineering companies across the country. In addition, India has the
cheapest space programme in the world. If Narayan can garner support and funds for the project and convince
the Indian Space Research Organization to launch his moon rover on its workhorse PSLV rocket, Team Indus
might emerge the winner in this prestigious competition.
World
05 China hikes defence budget to $ 115.7 billion
Mar China
China on Tuesday hiked its defence budget by 10.7 per cent to USD 115.7 billion. The hike in the defence
spending was announced as the Chinese legislature, the National People's Congress (NPC) opened its annual
session, which also marked the once-in-a-decade power transfer. As per the budgetary papers placed at the
NPC, a sum of 720.168 billion Yuan was allocated for defence, which at the current exchange rate amounted to
USD 115.7 billion. The newly elected leader Xi Jinping and his fellow leaders would formally take over power
GKCA Update
1st to 31st Mar
from President Hu Jintao in the course of next ten days. The 10 per cent hike this year comes when China is
rapidly modernising its armed forces in the back drop of deepening standoff with Japan over the disputed
islands as well as differences with several South Asian Countries over the South China Sea.
07 European Union fines Microsoft $731 million for breaching terms of an
antitrust deal
Mar Microsoft
The European Commission of the European Union has fined Microsoft Corporation $731 million for failing to
offer Windows users a choice of Internet browser, as it had agreed to do in 2009 for a five-year period. In
return for that initial agreement, the EU had dropped an antitrust case. The Commission said that 15 million
users in the European Union were only given the choice of using Microsoft’s Internet Explorer programme
which seemed to be a suspected abuse of market dominance.
09 Uhuru Kenyatta wins Kenya’s Presidential Election, opposition claims vote
Mar fraud
Kenya Elections
Uhuru Kenyatta, the son of Kenya’s first president has been declared as the winner in the country’s
Presidential election. Mr. Kenyatta has been a controversial figure, who has been accused by prosecutors at
the International Criminal Court in The Hague of bankrolling death squads during Kenya’s last election crisis in
2007 and his trial is set for July. Kenyatta has said that he is innocent and will cooperate with the proceedings
of the International Criminal Court but said in his winning speech that the international community should
respect the sovereignty and democratic will of the people of Kenya. The US increasingly relies on Kenya as a
key partner in the African region and Kenyatta’s victory could prove to be a challenge for the Obama
Administration which has pledged support to the International Criminal Court. Meanwhile, Raila Odinga,
Kenya’s prime minister, has refused to admit defeat saying that there has been massive illegality and
tampering with the election results. Mr. Odinga plans to appeal to Kenya’s Supreme Court to overturn the
results, which some independent observers said were unsatisfactory and suspicious.
19 India emerges as world’s top arms buyer, Asia is top importer of major
conventional weapons worldwide
Mar Arms Purchase
India has emerged as the world’s largest importer of conventional weapons worldwide according to new data
on international arms transfers published by the Stockholm International Peace Research Institute (SIPRI). Asia
and Oceania have accounted for almost half (47%) of global imports of major conventional weapons. The top
five importers of major conventional weapons worldwide are all in Asia: India (12% of global imports), China
(6%), Pakistan (5%), South Korea (5%) and Singapore (4%).
Meanwhile, China replaced UK as the world's fifth largest exporter of major conventional arms worldwide. This
is the first time China has featured in the top five arms exporters since the end of Cold War. Pakistan
accounted for 55% of Chinese arms exports and is likely to remain the largest recipient of Chinese arms in the
coming years. Overall, the volume of international transfers of major conventional weapons grew by 17%
between 2003-2007 and 2008-12.
GKCA Update
1st to 31st Mar
22 Interpol rejects Pakistan’s appeal to arrest Musharraf
Mar Pakistan
The Interpol has rejected Pakistan's request to issue a Red Corner Notice against former military ruler Pervez
Musharraf in connection with Benazir Bhutto's assassination case by stating the case against Musharraf
constitutes a matter of a predominantly ‘ political character’. Musharraf, who went into self-exile in early 2009,
has said he intends to return to Pakistan on March 24 to lead his party All Pakistan Muslim League in upcoming
polls. This is the second refusal by Interpol to arrest Musharraf after it refused to arrest Musharraf last year
due to insufficient proof by Pakistani authorities.
23 Buddhist Monks clash with Muslims in Myanmar
Mar Myanmar
Members of the Buddhist and Muslim communities in Meiktila township of Myanmar have clashed this week
after a dispute between a Muslim gold shop owner and two Buddhist sellers which has spurred communal
tensions in Myanmar once again. A group of about 100 Buddhists, including some monks, went around
Meiktila on Thursday night torching mosques, houses and schools prompting thousands of residents to flee
their homes. More than 5,000 Buddhists are also estimated to have fled to monasteries around the city to
escape the violence. Last year, similar communal tension had killed scores of people in western Myanmar.
30 Growing fuel shortage leads to food crisis in Egypt, sparks fear of economic
fiasco
Mar Egypt
A fuel shortage has led to a crisis in Egypt with food prices soaring and gun fights in fuel stations killing at least
5 people and injuring others. The government’s reserve of hard currency has fallen to about $13 billion from
$36 billion two years ago since half of its currency reserves are in illiquid forms like gold while billions are owed
to the foreign companies operating Egypt’s oil and gas fields. Scarcity of hard cash has drastically reduced fuel
imports and the fuel shortage is raising questions about Egypt’s ability to keep importing wheat that is
essential to subsidized bread supplies. Farmers already lack fuel for the pumps that irrigate their fields and to
reap their harvest next month. Rising Prices and employment, together with the fuel shortage has sparked fear
of an economic catastrophe. Economists are of the opinion that Egypt must carry out tax increases and subsidy
cuts tied to a $ 4.8 billion loan from the International Monetary Fund (IMF) which would make Egypt
creditworthy enough to secure loans from other lenders. Mohamed Morsi’s government has, till now, rejected
an IMF agreement, fearing further public outrage and prefers to wait until the election of a new parliament, a
delay which might cost Egypt dearly.
Egypt imports much of its fuel and energy subsidies make up 30 percent of government spending. Egypt also
imports about 75 percent of its wheat to improve its subsidized bread. The two years of protests since the
ouster of Hosni Mubarak have reduced tourism and foreign investment, crippling the economy. And as a result
of the outflows of hard currency, the value of the Egyptian pound has also been falling.
GKCA Update
1st to 30th Apr
Starred Articles
01 Supreme Court rejects Novartis AG’s plea to preserve patent for cancer drug
Glivec
Apr Corporate > Novartis
The Supreme Court of India has rejected Swiss drug maker Novartis AG’s plea to preserve patent for its cancer
drug Glivec, ending fears among patients of a 15-fold price increase of the drug if Novartis won the patent.
Glivec, invented in 1991, is a miracle cure for a type of fatal blood cancer called chronic myeloid leukemia
(CML) and has produced results of over 95% survival rate among affected patients. India has an estimated 3
lakh CML patients, with 20,000 added every year. Glivec is sold by Novartis for about Rs 1.2 lakh per month
whereas Indian manufacturers sell the same drug at a monthly cost of only Rs 8,000. The Supreme Court’s
judgement means that Indian companies like Natco and Cipla can continue making and selling Glivec to India
and most third world countries. The Indian pharma market is $11 billion, growing at 13 – 14% annually and
Indian companies sell over $26 billion worth of cheap non-patent drugs to most of the poor and still
developing countries.
Background:
Glivec was first commercially sold in India in 2001 and the new patent law came into force in 2005. The patent
tribunal rejected Novartis’s claim for a patent in 2006 as it dated from an earlier time when a different patent
law prevailed. After going through various appeals, Novartis appealed in the apex court pleading that a crucial
section 3 (d) of the new patent law was not applicable to Glivec. This section says that just discovering a new
form of a substance is not enough to grant a patent, if it does not enhance its "known efficacy". Novartis was
arguing that a new "beta crystalline" form of Glivec is more effective and hence qualifies as a new invention,
and hence should get patent protection. The Supreme Court said that the beta crystalline form was nothing
new. It has always existed in the original amorphous form and hence could not be patented.
01 Shuffling in BJP, Modi appointed to Parliamentary Board
and Government > BJP
Apr Politics
Parliamentary Board:
The BJP has appointed Narendra Modi to the party’s Parliamentary Board, the party’s top decision making
body as well as to its main election committee. BJP President Rajnath Singh backed Modi’s appointment saying
that Modi deserved to be on the Parliamentary Board because of his stature as the only BJP chief minister to
have won three consecutive assembly elections as well as by virtue of being the party’s most popular face. The
decision is significant since Rajnath has thwarted opposition to Modi within the party to appoint him to the
two committees taking key decisions in the run up to the 2014 elections. Rajnath also inducted a lot of fresh
faces in his team and tried to reconcile the demands from all lobbies within the party.
General Secretaries: Modi confidant and former Gujarat minister of state for home, Amit Shah and Pilibhit MP
Varun Gandhi have been appointed as general Secretaries.
Vice Presidents: Smriti Irani, Uma Bharti and S S Ahluwalia have been made vice-presidents
Omissions: senior BJP leaders Yashwant Sinha and Jaswant Singh, who had previously voiced their discontent
with Modi, have been dropped from the committee. Najma Heptulla, Hema Malini and Shanta Kumar have
been removed from their posts as vice-presidents.
GKCA Update
1st to 30th Apr
02 Reliance Industries signs Rs. 1,200 crore deal with Reliance Communications
Apr Corporate > Reliance
The telecommunication unit of Mukesh Ambani owned Reliance Industries has signed a 1200 crore deal to use
Anil Ambani’s Reliance Communications fibre optic network to roll out its 4G services. This is the first ever deal
since the two brothers split their father’s business enterprise 8 years ago. As part of the deal, Reliance Jio
Infocomm, the telecom arm of RIL, which is the only company to have 4G airwaves for all of India's 22 service
areas, will get access to Reliance Communications' national and international optic fibre. The deal is supposed
to be the first in a comprehensive framework of intended business cooperation and will benefit the debt-laden
Reliance Communications.
03 New anti-rape law comes into force
> Anti-rape
Apr India
President Pranab Mukherjee has given his assent to the Criminal Law (Amendment) Bill 2013 brought in the
aftermath of the Delhi gang rape case which provides for life term and even death sentence for rape convicts
besides stringent punishment for offences like acid attacks, stalking and voyeurism. The law was passed by Lok
Sabha on March 19 and by Rajya Sabha on March 21.With an aim to prevent heinous crimes such as rape, the
new law states that an offender can be sentenced to rigorous imprisonment for a term which shall not be less
than 20 years, but which may extend to life, meaning imprisonment for the remainder of the convict’s natural
life and with a fine. It has provisions for handing out death sentence to offenders who may have been
convicted earlier for such crimes. The law, for the first time, defines stalking and voyeurism as non-bailable
offences if repeated for a second time.
04 Deep seabed mining of polymetallic nodules to become a reality
and Technology > Polymetallic Nodules
Apr Science
U.K. firm Lockheed Martin, for the first time in the world, will mine polymetallic nodules in a 58,000 sq. km.
area in the Pacific Ocean. This venture could add 40 billion pounds to the U.K. economy over the next 30 years.
India, which has been a pioneer to invest in research of polymetallic nodules in the deep seabed, has been
allocated 150,000 sq. km in the Central Indian Ocean Basin (CIOB) by the International Seabed Authority (ISA)
for pursuing mining of nodules. The Indian Ocean has a vast area of 10-18 million sq.km covered by
polymetallic nodules. Of this, the mass of polymetallic nodules in the area allocated to India (Indian Pioneer
area) is estimated to be 380 million metric tonnes (mmt). Of the total amount, manganese may account for
about 92.60 mmt whereas metals like cobalt, nickel and copper account for 0.56 mmt, 4.70 mmt and 4.30 mmt
respectively. The mining of these metals is of extreme importance to India which does not have a terrestrial
source of these metals. However technology for this is still at a nascent stage and the National Institute of
Ocean Technology (NIOT), Chennai is developing the technology for mining polymetallic nodules found at a
depth of 6000 metres on the Indian Ocean.
08 Pakistan allowed US drone strikes in secret deal by insisting drones should
mountains camps where Kashmiri militants were trained
Apr avoid
World > Pakistan-US Drone Deal
An article from the book “The Way of the Knife: The C.I.A., a Secret Army, and a War at the Ends of the Earth,”
to be published by Penguin Press reveals a covert deal between the United States’ C.I.A and Pakistani’s InterServices Intelligence (ISI) to engage in drone strikes in Pakistan’s tribal areas. In a secret deal, the C.I.A. had
agreed to kill Nek Muhammad, a Pakistani ally of the Taliban who led a tribal rebellion and was marked by
GKCA Update
1st to 30th Apr
Pakistan as an enemy of the state, in exchange for access to airspace it had long sought so it could use drones
to hunt down its own enemies. Muhammad’s rise to power ultimately forced Pakistani authorities to allow US
drones into Pakistani airspace. Ultimately, Muhammad was killed by a drone strike in June2004 which the
Pakistani military claimed was its own handiwork. The terms of the negotiations were stunning. ISI agreed to
allow armed drone flights over the tribal areas but insisted that US drones couldn’t venture where Pakistan’s
nuclear facilities were situated or the mountain camps where Kashmiri militants were trained for attacks on
India. ISI also asserted that each drone strike would be approved by them giving them complete control on the
selection of targets.
The C.I.A. has since conducted drone strikes in Pakistan that have killed a huge number of militants and
civilians alike and which is the subject of a major debate in the United States. Pakistan seemed to have become
the testing ground for targeted killing operations that have come to define a new American way of fighting,
ignoring the normal mechanisms by which the United States goes to war.
09 Supreme Court cuts down austerity measures in Portugal, government
of severe economic woes
Apr warns
Economy > Portugal Recession
Portuguese Prime Minister Pedro Passos Coelho has warned that his government would be forced to introduce
more spending cuts and people would face more difficulties in everyday life after Portugal's constitutional
court struck down four of nine contested austerity measures that the government had introduced last year as
part of a 2013 budget that included about 5 billion of tax increases and spending cuts. The court ruled as
unconstitutional and discriminatory the government’s plans to cut holiday bonuses for civil servants and
pensioners, as well as to reduce sick leave and unemployment benefits. The ruling left the government short of
about 1.4 billion of expected revenue, or more than one-fifth of the 2013 austerity package. In May 2011,
Portugal became the third Eurozone country, after Greece and Ireland, to negotiate an international bailout.
Portugal had received 78 billion from the International Monetary Fund and European creditors in return for
introducing spending cuts and tax increases. However, it has failed to meet its economic goals and plunged
further into one of the most prolonged and deepest economic recessions in the Eurozone, prompting street
demonstrations and labour strikes.
09 Notices to Vodafone, Essar, HSBC for Rs. 35000 crore under-reporting;
Adani, Tata, Essar, JSW face Rs. 2500 crore import duty evasion charges
Apr Corporate > Under Reporting and Tax Evasion
Tax authorities in Mumbai circle have issued notices to four Essar group firms, Vodafone India Services, HSBC
Securities & Capital Markets and Bharti Telecom for under-reporting revenues amounting to Rs 35,000 crore
because of lower valuation of transactions. A sizeable portion of this amount is on account of the difference in
valuation of shares between the companies and the government's transfer pricing department. Transfer
pricing is the price at which related companies or associated enterprises transact with each other.
In another case, the Directorate of Revenue Intelligence (DRI) has accused Adani Power, Tata Power, Essar
Power and JSW Energy and other companies of evading import duty amounting to Rs. 2500 crore on coal
imports worth about Rs. 28,000 crore. The companies had allegedly imported bituminous coal by labeling it as
steam coal to lower their duty outgo. But the power ministry has disputed DRI's claim and supported the cause
of producers who argued that there was ambiguity in a finance ministry directive that allowed a lower duty
regime for steam coal.
GKCA Update
1st to 30th Apr
11 Mukesh Ambani to take on lease 50,000 towers owned by Anil Ambani’s
Reliance Infratel
Apr Corporate > Ambanis
Mukesh Ambani owned Reliance Jio Infocomm will take on lease 50,000 towers owned by Anil Ambani’s
Reliance Infratel to launch his 4G mobile services business. This is a part of intended business collaborations
between the two brothers. A few days ago, Reliance Jio Infocomm had struck a Rs 1,200-crore deal to share
fibre optic network of Reliance Communications. The telecom infrastructure deal will provide a ready platform
for Mukesh to launch his 4G business and provide a steady flow of revenues to Anil to manage his debt.
12 SFI activists heckle Mamata Banerjee to protest SFI leader Sudipto Gupta’s
death; in retaliation Trinamool vandalize Presidency University
Apr Politics and Government > Trinamool Congress
Left supporters heckled West Bengal Chief Minister Mamata Banerjee and Finance Minister Amit Mitra outside
the Planning Commission Office in New Delhi to protest the death of SFI leader Sudipto Gupta in police
custody.
Sudipto Gupta, an SFI leader, was allegedly killed in police custody on April 2nd after he was thrashed brutally
by the police while leading a peace protest March in Kolkata. Mamata maintained that Sudipto’s head hit a
lamp post when he put his head out while being taken in a police van whereas according to the police, Sudipto
fell from the bus carrying SFI supporters and died. The incident has outraged a large number of students and
incited protests from all quarters. The Left has demanded a judicial probe into the cause of death. Mamata
faced strong criticism from the Left after she termed the incident a ‘petty’ matter.
In protests against the heckling of party leaders, Trinamool Congress Chhatra Parishad members vandalized
and ransacked the physics department of Presidency University on April 13th and assaulted students, including
women. The Trinamool Congress termed the incident trivial and blamed the media for giving more importance
to the vandalism than the heckling of Banerjee.
12 Infosys misses its annual revenue guidance and forecasts slow revenue
for 2013-14
Apr growth
Corporate > Infosys
Infosys missed its full-year revenue guidance by 0.97 per cent in rupee terms and 0.6 per cent in dollar terms
despite an 18.1 percent increase in revenues in the third quarter ending March 31st. Infosys also announced
that its revenue growth forecast for 2013-14 would be 6 to 10 percent which is much lower than the industry
average of 12 to 14 percent projected by NASSCOM. This prompted Infosys’ shares to dip by over 20 percent.
Infosys reported revenues of Rs. 40,352 crore for 2012-13, up by 19.6 per cent compared to the previous
financial year. However, on a sequential basis, revenues grew by a mere 0.3 per cent. Infosys cited the volatile
business environment as the reason for the low revenue guidance for 2013-14.
15 3 killed and more than 140 wounded at Boston Marathon Bomb blasts
Apr World > Boston Bomb Blasts
Two powerful bombs exploded at the popular Boston Marathon killing 3 and critically injuring over 140 people.
The two blasts occurred within seconds on a sidewalk along the 42-kilometre route of the Boston Marathon,
where thousands of people had lined up to cheer on the marathoners. Although no militant outfit has claimed
responsibility for the blasts, White House is approaching it as an act of terror. FBI has revealed that bombing
was carried out with kitchen pressure-cookers packed with explosives, nails and other lethal shrapnel.
GKCA Update
1st to 30th Apr
15 Gold prices drop 9 percent, biggest one-day fall in 30 years
Apr Economy > Gold Prices
Gold prices plunged $140.30 to $1,361.10 an ounce on Monday, 15th April, a decline of 9% and its biggest oneday drop since 1983. In the last two trading days, the price of Gold has dropped $200 an ounce i.e. nearly a
drop of 13 percent. After the sharp drop in gold prices, worried traders hurried to sell their shares and move
out of the market. Gold is often seen as a safe investment and investors tend to invest in gold when they are
fearful of rising prices and sell it when they see inflation receding. A proposal to Cyprus to help its banks by
selling off some of its gold reserves led investors to a selling frenzy as they worried that Spain, Italy and other
weak European countries might also sell their gold reserves, at a time when the demand for the metal is
weakening.
15 BJP must name Prime Ministerial candidate by year end, rule out Narendra
Modi; demands Nitish Kumar
Apr Politics and Government > BJP – JD (U)
A rift in the National Democratic Alliance seems apparent after the BJP rejected JD (U) chief and Bihar Chief
Minister Nitish Kumar’s demand that the BJP rule out Narendra Modi as the party’s Prime Ministerial
candidate in 2014. Kumar also demanded that the BJP name its Prime Ministerial candidate by the year-end to
avoid bringing in Modi suddenly, either in the immediate run-up to the polls or afterwards. In a hard-hitting
speech, Kumar, without taking names, rejected Modi’s candidature for the PM’s post by citing lack of secular
credentials and a growth model which cannot address the issue of malnutrition or drinking water. The BJP
responded by saying that it rejected all unfounded inferences against Narendra Modi and reprimanded Nitish
for losing focus of removing the UPA coalition.
16 Massive Earthquake strikes Iran, 40 feared dead; tremors felt in North India
Apr too
World > Iran Earthquake
A powerful earthquake measuring 7.8 on the Richter scale struck the border regions between Iran and
Pakistan. The quake happened at 10.44am and tremors were felt across the Gulf region, across Pakistan and
parts of North-West India. The epicenter of the earthquake was 50miles to the remote town of Khash in South
East Iran. 40 people were feared to be dead as communications were cut off from the affected regions in Iran
and Pakistan.
19 Former Pakistani President Pervez Musharraf arrested
Apr Politics and Government > Pakistan
Former Pakistan President Pervez Musharraf has been arrested for not cooperating with police officials
investigating a case registered against him for imposing an emergency in 2007 and detaining over 60 members
of the superior judiciary, including chief justice Iftikhar Choudhry. The police want Musharraf to be placed in
judicial custody and don’t want to keep him in jail because of threats to his life. Musharraf has been
disqualified for the May 11 parliamentary election because of the criminal charges.
In a related development, a Pakistani anti-terrorism court, conducting the trial of suspects charged with
involvement in the 2007 assassination of former Prime Minister Benazir Bhutto, has ordered that former
Pakistani President Pervez Musharraf be included in the investigation process. Investigators said that
GKCA Update
1st to 30th Apr
Musharraf, despite being aware of the danger to Ms. Bhutto’s life, did not take the adequate security
measures to prevent her assassination.
20 Gold prices increase by Rs. 500 /10 gram on retail sales
> Gold
Apr Economy
Gold prices increased by Rs. 500 in Delhi to reach 27,000 per 10 gram, on 20th April, after the recent meltdown
in global bullion prices. The gold in New York climbed 1.4 per cent to 1,412.40 dollar an ounce and spurted one
per cent to Rs. 26,069 per 10 gram on the MCX. The recovery of gold prices was backed by retailers buying it at
attractive low levels. The increase was further fuelled on speculators covering their short positions created in
the bear markets and a rise in futures trade on the Multi Commodity Exchange. However, buying activity was
mostly confined to gold as silver continued to fall for the sixth straight day on April 20th by losing Rs. 100 to Rs.
45,300 per kg.
Despite the recent crash in Gold prices, the RBI's gold stock of about 400 tonnes, currently valued at $25.7
billion, has appreciated 41% since it bought 200 tonnes in October-November 2009 from the International
Monetary Fund. During the same period, returns from alternative liquid assets were just one- fourth of gold.
The share of gold in its $295-billion foreign exchange reserves is 8.7%, up from less than 5% at the time of the
purchase from IMF and its value is substantially higher than the returns from other currencies in its reserves.
22 Sahara India amongst top defaulters, owes Rs. 3,341.67 lakh to the
Provident Fund Organization
Apr Employees’
Corporate > Sahara
Sahara India faces fresh allegations of owing Rs. 3,341.67 lakh as dues and is amongst the top defaulters of the
Employees’ Provident Fund Organization (EPFO). Five of the group firms are part of the top 50 companies in
the country that have defaulted on depositing contributions to the Employees’ Pension Fund on behalf of its
employees. It is a criminal offence for an employer to deduct but not deposit employees’ provident fund and
related contributions. In such cases, the EPFO can also seize property of the defaulter to recover dues and can
be charged under the Indian Penal code. Currently, Sahara India is under investigation by the Securities and
Exchange Board of India (SEBI) for not refunding Rs. 24,000 crore, collected from over 3 crore investors.
23 Standing Committee on Coal and Steel says all coal blocks awarded after
1993 illegal
Apr India > Coalgate
The standing committee on Coal and Steel has said that all coal blocks distributed between 1993 and 2008
were done in an unauthorized manner and allotment of all mines where production is yet to start should be
cancelled. The committee has also recommended that all personnel directly or indirectly involved in the
allocation should be investigated. The committee’s report is in line with the Comptroller and Auditor General’s
(CAG) report of August 17, 2013, which says that the government extended windfall benefit of Rs. 1.86 lakh
crore to private entities by distributing blocks without bidding. The allegations have put the UPA government
in a bad light with the opposition demanding its removal.
23 Bengal Chit Fund boss Sudipta Sen held in Jammu and Kashmir
Apr India > Cheat Fund Scam
Sudipta Sen, the alleged kingpin of West Bengal’s multi-crore chit fund scam has been arrested along with
Saradha group executive director Debjani Mukherjee and a senior official of Saradha’s Jharkhand Operations,
GKCA Update
1st to 30th Apr
Arvind Chauhan, at a hotel of Sonamarg on the Shrinagar-Leh highway. On 10th April, Sen fled to Ranchi,
where he changed his car and drove through a 2500 km road stretch before finally checking into the posh hotel
of Sonmarg. SEBI has barred Saradha Reality from the Securities Market and ordered it to close all its collective
schemes and refund the money collected from investors within three months. The West Bengal government
has frozen about 35 bank accounts, while 36 cars and four office buildings belonging to Saradha Chairman
Sudipta Sen and his company have been seized. Lakhs of investors of the chit fund group have hit the roads
alleging they have been duped of over Rs 30,000 crore. An agent of the company tried to commit suicide and a
woman who had deposited 30,000 with the company set herself on fire.
Meanwhile, Trinamool Congress is facing accusations of being in close links with the fraud company. Trinamool
Rajya Sabha MP Kunal Ghosh headed Saradha's media interests whereas another Trinamool MP, Shatabdi Roy,
featured in Saradha's promotional material. The opposition also alleged that Mamata Banerjee had
inaugurated two Saradha publications. Trinamool has denied the allegations and accused the previous Left
government for allowing chit funds to flourish in Bengal since the 1980s. On April 6, Sen couriered letters to
several agencies, including CBI, the finance ministry and SEBI,listing politicians, including Trinamool leaders and
a minister in Assam who had allegedly taken money from Saradha. The content, if true, could reveal a nexus
between politicians and fraud chit funds
Background:
Saradha had mopped up about Rs. 1200 crore through its chit funds. About 2.5 to 3.5 lakh agents worked for
Saradha group, many of who also invested their own money. These agents got a commission ranging from 15
to 40 per cent. The schemes were simple and attractive. An investor could invest as little as 100 rupees and
there was no upper limit. Saradha promised huge returns of 15 per cent to 50 per cent. It also promised land
and fancy holidays, always with the assurance that if it failed to deliver, it would give cash. In reality, it merely
gave money collected from one depositor to pay off another. There is speculation that the chit fund scam bust
after a crackdown by the SEBI and the Reserve Bank of India. Also, many policies held by depositors were
beginning to mature and Saradha simply did not have the cash to pay up.
23 Reliance Jio inks agreement with Bharti to share Telco Infra, Airtel acquires
Telecom Uganda
Apr Warid
Corporate > Reliance –Bharti
Reliance Jio, the telecommunications unit of Reliance Industries owned by Mukesh Ambani had joined hands
with arch rival Bharti Airtel to use the latter’s i2i submarine cables for its 4G launch. A joint statement said that
the two companies will continue to build on this strategic framework and consider other mutual areas of
cooperation to leverage their respective assets towards offering customers a much richer experience. The deal
is significant, especially for reliance Jio because it can utilize the dedicated fibre pair on Bharti’s i2i submarine
cable that connects India and Singapore as well as get direct access and ultra-fast connectivity to major hubs
across Asia-Pacific. The deal between the two major competitor companies has surprised industry insiders.
Meanwhile, Airtel has acquired rival Warid Telecom Uganda, giving it a combined market share of almost 40%
in Uganda. Bharti is said to have closed the deal at about $ 100 million, though the financial details of the
transaction have not been disclosed. At present, Airtel is present across 17 African countries through its $ 10.7
billion acquisition of Zain’s continental unit in 2010.
Banks invoke letters of credit worth more than 4000 crore to Mumbai-
24
based Winsome Jewellers
Apr Economy > Winsome Issue
Standard Bank of South Africa, Standard Chartered London and Scotiabank from whom Winsome imported the
bullion and a dozen banks in India have invoked letters of credit (LCs) worth more than 4,000 crore after the
GKCA Update
1st to 30th Apr
company, formerly Su-Raj Diamonds, failed to cough up a smaller amount. The overseas banks invoked the
letters of credit following the devolvement of LCs worth about 500 crore. Of the LCs, many are yet to reach the
due date. But the bullion banks are unwilling to take chances with the price of gold falling sharply. Banks have
the right to invoke LCs before maturity if they fear the buyer may default. The company, having contracted
imports at a higher price, is backing out with gold falling unexpectedly. Winsome has moved the Bombay High
Court to stay the invocation of LCs by Standard Bank. In 2012, Su-Raj, came under the glare of US investigative
agencies following allegations of undisclosed sale of synthetic diamonds. In the same year, the listed entity
rechristened itself Winsome. Crisil has downgraded Winsome’s rating to ‘A4’ and the company continues to
remain on the rating agency’s ‘Watch Negative’ list.
Letters of credit are issued by the banks of the buyers to comfort sellers that they will be paid as long as the
terms of trade are fulfilled.
25 Jet to sell 24% stake to Etihad Airways for Rs 2,058 crore, Etihad extends
$300 million soft loan to Jet
Apr Corporate > Jet-Etihad Deal
Jet Airways would sell 24 per cent equity to Etihad Airways for about Rs 2,058 crore, as part of a strategic
alliance that would lead to a major expansion in their global network. The 24 percent equity would comprise
27.26 million shares in a preferential offer to Etihad at Rs 754.74 apiece. The market value of the carrier
climbed Rs 628 crore to Rs 5,582 crore. Substantial ownership and effective control will remain with Indian
nationals with Goyal as non-executive chairman holding 51% of the company. The deal will give Etihad a bigger
foothold in the fast growing market in India and provide Jet with cash to repay debt and give it a partner with
global expertise.
Etihad has extended a $ 300 million soft loan to Jet Airways at a rate of only 3 percent. Jet will use the money
to partially replace its high-cost loans. Jet Airways had a debt of $ 2.1 billion at the end of December 2012 and
is paying an annual interest of about Rs. 1000 crore. The soft loan will help Jet save $30 million (Rs. 162.75
crores) annually on interest alone.
26 China denies crossing LAC, says it’ll resolve standoff amicably
Apr Politics and Government > Indo-China Standoff
China denied that its forces have crossed the Line of Actual Control (LAC) but at the same time said that its
forces are in talks with the Indian side to resolve the latest standoff issue. Indian troops might increase troops
in the LAC if the Chinese army does not back out from the present location. The Chinese soldiers have pitched
one more tent near the face-off site in Despang valley after 3 failed flag meetings between the two armies.
This has diminished the Indian government’s assessment that there was no need of diplomatic-level talks and
that the issue can be resolved through dialogue between the local commanders.
Background:
Chinese troops set up a post inside Indian Territory, about 10 km from the LAC, the de-facto border between
India and China, and have been staying there since April 15th. Indian border forces, too, have stationed a
matching contingent just opposite the Chinese post.
Chit fund scam accused blames Nalini Chidambaram and prominent
27
Trinamool Congress MPs in letter to CBI
Apr India > Saradha Chit Fund Scam
The alleged kingpin of the West Bengal Chit Fund scam Mr. Sudipta Sen had written a letter to the CBI on April
6th which has sprouted fresh political controversy of national proportions. Sen said that he met prominent
GKCA Update
1st to 30th Apr
Trinamool leaders, Kunal Ghosh and Srinjay Bose, as representatives of Bengali newspaper Protidin and agreed
to pay Protidin 60 lakhs per month and made Ghosh the CEO of his company Channel 10 at a salary of Rs. 15
lakhs per month. The Trinamool MPs, in turn, assured Sen that they had close links with West Bengal Chief
Minister Mamata Banerjee and promised that they would protect Sen’s business from the Central and State
governments. He also alleged that Nalini Chidambaram, wife of Union Finance Minister P. Chidambaram, who
was Union Home Minister at the time, sought his help for the establishment of a television channel in NorthEast India. The letter accuses other businesspersons and politicians of putting pressure on the fund to lend
money for various projects.
The Congress has dismissed allegations against Nalini and has demanded, along with the CPI (M), a CBI enquiry
into the murky affairs of the Chit Fund.
The West Bengal government will set up a 500-crore relief fund to help out those depositors, recommended by
the Inquiry commission, who have lost everything in the Saradha Group’s collective investment schemes. Ms.
Banerjee announced an additional 10 per cent tax on tobacco and tobacco products to raise money for the
fund. In addition, seized property and assets of the Saradha group will be auctioned off to repay investors.
28 Govt hikes import tariff value of gold to $472/10 grams
Apr Economy > Gold
Government has raised the tariff value of gold to $472 per 10 grams on account of a volatile price trend in
global markets. Tariff value is the base price on which the customs duty is determined to prevent underinvoicing. It was only 10 days back that tariff value of gold was changed bringing it down to $449 per 10 grams
due to weak global prices. The government has cut the import tariff value of gold as international prices of the
precious metal have started firming up after witnessing a sudden fall in last few weeks. Last week in Delhi,
Gold rates were firm at Rs 28,100 per 10 grams.
29 More than 350 dead as building housing textile factories collapses in
Bangladesh
Apr World > Bangladesh
More than 350 people have died and more than 800 people have been badly wounded after an 8-storey
building that housed several readymade garment factories collapsed in Savar, in the outskirts of Dhaka. The
dead were mostly low-paid garment workers from the factories. Police say they ordered an evacuation of the
building on the previous day after cracks in the building were found. But textile factories forced their workers
to come to work. The disaster is the worst ever for the country’s booming and powerful garment industry,
surpassing a fire five months ago that killed 112 people and brought widespread pledges to improve workersafety standards. The police have arrested five people including the owner of the building.
Corporate
02 Bombay High Court rejects UB Holdings’ plea to restrain banks from selling
Apr shares
Kingfisher
The Bombay High Court has rejected UB Group’s plea to restrain banks from selling shares of United Spirits
pledged as security against loans to Kingfisher Airlines. UB moved court after the SBI sold USL shares valued at
Rs. 100 crore last week. The action by the banks, with SBI as the lead lender is likely to hamper Vijay Mallya’s
plans to revive Kingfisher as well as sell a majority stake in United Spirits Ltd. (USL) to London based drinks
major Diageo, announced last November for over Rs 11,000 crore. The banks have lent close to 7500 crore to
GKCA Update
1st to 30th Apr
Kingfisher Airlines till now and the Bombay High Court ruling means that the consortium of 17 banks would be
free to sell shares of the subsidiary companies of the UB Group which had been pledged with the lenders
under an agreement in 2010.
02 Sterlite Industries fined Rs. 100 crore
Industries
Apr Sterlite
The Supreme Court has imposed a fine of Rs. 100 crore (Rs. 1 billion) on Sterlite Industries for flouting green
norms at its Tuticorin plant in Tamil Nadu. Despite the fine, the Supreme Court overruled the Madras High
Court’s directive in 2010 to shut down its Tuticorin plant over long standing environmental concerns. However
the Supreme Court’s ruling will have no bearing on the Tamil Nadu Pollution Control Board’s 30 March
directive to close the smelter till further orders after allegations of a harmful gas leak from the factory. The
Tuticorin plant is the largest copper smelter in India, capable of producing 300,000 tonnes a year.
05 India’s most traded 50 large-cap companies may report worst aggregate top
growth in two years
Apr line
Top 50 Companies
India's 50 most frequently traded large-cap companies are likely to report the worst aggregate top line growth
in two years in the quarter to March on lower spending by consumers, although operating margins have
improved. Companies which constitute the Nifty 50 index expected to grow by 4% from a year ago while net
profit will rise by 5%. Sales are likely to grow at the slowest pace in nine quarters. In the previous quarter, at
9.4%, revenue growth fell below 10% for the first time in two years. The trend of slower sales growth is likely
to continue in the medium term. Overall demand has fallen and corporates are hesitant to make major
investments because of policy uncertainty, governance and execution issues. The only positive can be that at
19.8%, operating margins will be 150 basis points better than a year ago. Apart from cost control and lower
raw material expenses, higher operating profits of select companies, including Asian Paints, Cairn India, Gail,
Reliance Infrastructure and Tata Power will likely boost aggregate margin.
09 Tata Consultancy Services to buy French Enterprise Solutions Provider Alti
SA for about 533 crore
Apr TCS
Tata Consultancy Services (TCS) will acquire France - based Enterprise Solutions Provider Alti SA for 75 million
Euro (about Rs 533 crore) in an all-cash deal. Alti SA is a leading French technology services firm with expertise
in IT services including Enterprise Solutions, Assurance and CRM solutions. TCS said that the acquisition would
help to increase its foothold and presence in France, the third-largest IT services market in Europe, and better
service its clients in France and Europe more comprehensively with an expanded set of services and solutions.
09 Wipro dips 11% after hiving off non-IT business into unlisted entity
Apr Wipro
IT major Wipro’s shares plunged over 11% in early trade after it demerged its non-IT business into an unlisted
entity Wipro Enterprises (WEL) to comply with SEBI’s minimum public holding for all listed non-PSU companies.
SEBI's norm mandates a 25 per cent minimum public holding by June. Wipro said that the demerger would
help to focus on its growth strategy in the IT products and services sector and increase its competitiveness in
the market. Wipro’s non-IT businesses comprise consumer care and lighting, medical equipment and
infrastructure engineering.
GKCA Update
1st to 30th Apr
09 BMW to manufacture sub-500cc motorcycles for the first time in
collaboration with TVS
Apr BMW
BMW Motorrad, the motorcycle division of BMW and Chennai based TVS Motors have entered into a long
term technical agreement to jointly manufacture a range of sub-500cc motorcycles. The new premium
motorcycle range will come in two distinct varieties — one badged BMW to be sold by BMW in India and
globally and the other badged TVS to be sold in India and any global market that TVS wants. BMW is venturing
into the sub-500 cc motorcycle segment for the first time. The tie-up will also feature TVS in the 250cc
segment where it isn’t present right now and a technological rub-off across its manufacturing line-up. The new
motorcycles are expected to roll out in 2015.
09 Supreme Court allows Bharti to continue 3G services, Sunil Mittal’s case to
decided next week
Apr be
Bharti
The Supreme Court has issued a status quo order in the 3G roaming case, allowing Bharti to continue offering
high-end data services till April 11, the next date of hearing for the case. The Telecom department had earlier
declared as illegal the 3G roaming pacts that enabled these companies to offer pan-India data services and
imposed stiff penalties on them.
In a different case in which Mittal had appealed to the Supreme Court to quash the summons issued against
him by a lower Court in the 2G spectrum allocation case, the Supreme Court has said that it would decide on
the validity of the summons by April 15 and has asked the CBI special court not to deal with the issue till April
16.
11 Toyota, Honda, Nissan to recall 3.4 million vehicles worldwide
Apr Toyota, Honda, Nissan
Toyota, Honda and Nissan are recalling more than 2 million vehicles globally for an identical problem with air
bags on the passenger side whose inflator may burst, sending plastic pieces flying. No injuries have been
reported relating to the problem. The auto makers recalled the vehicles after airbag manufacturer Japan’s
Takota Corporation recalled them. Toyota Motor Corp. is recalling 1.7 million vehicles whereas Honda Motor
Co. is recalling 1.1 million vehicles worldwide. Toyota’s affected models include the Corolla, Tundra, Lexus SC,
produced between November 2000 and March 2004 whereas Honda has recalled its Civic and Odyssey models.
17 Iconix Lifestyle enrolls Kapsons to launch 80-year old American Fashion
London Fog in India
Apr Brand
Iconix Reliance
Iconix Lifestyle India, a joint venture between Iconix Brand Group and Reliance Brands, has enlisted North
India-based retailer Kapsons to roll out the 80-year old American fashion brand London Fog in India. Mukesh
Ambani’s Reliance Brands controls the India rights for more than 20 international fashion brands of Iconix as
part of an equal joint venture deal struck last year. London Fog is famous for manufacturing coats and jackets
for a niche market. Chandigarh-based retailer Kapsons is the pan-India licensee for brands like Nike Action,
Jordan kids and Levis kids along with retailing brands like Nautica, Tommy Hilfiger, Gant, Fcuk, Gas, Benetton
and Calvin Klein Jeans, among others.
GKCA Update
1st to 30th Apr
28 Tata Steel to shut down two UK Research facilities, job cuts expected
Apr Tata Steel
Tata Steel plans to shut down two research and development facilities in the UK and shift them overseas to the
Netherlands and India, resulting in 300-400 job cuts. This move is seen as a major blow to Britain’s already
struggling industrial base. The European steel operations of Tata, which started by acquiring Corus back in
2007 for an estimated 6.7 billion pounds, is believed to be operating with towering debts of 3.4 billion pounds
hit by high energy costs, falling demand and plummeting steel prices. Tata Steel employs around 19,000
workers in Britain and controls 46 per cent of the domestic market.
30 Aircel lenders contemplate merger or infusion of additional equity for fear
default
Apr of
Aircel
Lenders to Aircel cellular company, led by SBI, are exploring a possible merger with Tata Teleservices as well as
infusion of addition equity from Maxis, which owns 74% of Aircel, to prevent their loans, amounting to Rs.
23,000 crore, from turning into a non-performing asset. Aircel had taken loans from State Bank of India, Bank
of Baroda and Punjab National Bank among a clutch of 15 banks. Aircel needs $ 4 billion of investment,
through issue of new shares and from selling Broadband Wireless Access spectrum (BWA) won by the company
in 2010 and fresh debt. However, Aircel faces major regulatory issues in India following a CBI complaint by
Sivasankaran that he was forced to sell his stake to Maxis in 2006 because of pressure from Dayanidhi Maran,
the telecom minister at the time, and Kalanithi Maran, Dayanidhi’s brother and the owner of Sun TV. The talks
with Tata Teleservices might not fructify into a deal and banks might be apprehensive to lend money because
of Maxis’s difficulties with the Indian authorities, following which Aircel might find it difficult to run smoothly.
Economy
19 RBI issues strict orders to curb money laundering, banks to ask customers to
resubmit ids
Apr RBI Anti Money-Laundering
The RBI has issued orders asking banks to tell their customers to resubmit ids to prevent wrong documentation
that allowed people to open false accounts and launder money. The RBI, in its probe following the
cobrapost.com sting operation on staff of private banks, found several aberrations which suggest that staff at
ICICI, HDFC and Axis banks might have flouted KYC norms and helped clients evade taxes. RBI has also asked
banks to provide information on negative news and scam-related statements which they have issued to print
media and social media such as Twitter, Facebook, and suggested tightening employees' incentive structure to
prevent them from going overboard in selling financial products.
In March, 2013, a sting operation conducted by theCobrapost.com alleged that some bank officials of Axis,
ICICI and HDFC banks had offered to launder unaccounted money by investing in insurance schemes.
19 World Bank welcomes decision to establish the BRICS bank
Apr BRICS Bank
The World Bank has said that it alone cannot meet the huge infrastructure needs of the emerging nations and
has welcomed the decision of Brazil, Russia, India, China and South Africa to establish the BRICS Bank. Jim Yong
Kim, the president of World Bank said that countries such as India had an infrastructure deficit of USD 1
GKCA Update
1st to 30th Apr
trillion, half of which can be met by public resources whereas the other half cannot be financed by World Bank
alone. The BRICS bank would help in a major way in such investments in infrastructure in the emerging
nations.
India
01 Police reveal Olympic medalist Vijender Singh took heroin 12 times
Singh
Apr Vijender
Punjab Police have revealed that Olympic bronze medalist boxer Vijender Singh and his boxing partner Ram
Singh had taken heroin 12 and 5 times respectively for personal consumption between December 2012 and
February 2013. However, neither of them could be arrested at this time as they had not conspired or actively
aided the smugglers in their activities and nothing had been recovered from them. The police in its
investigation report have mentioned the 56 call logs between drug kingpin Kahlon and Vijender, GPS location
of Vijender's cellphone and an SUV registered in Vijender’s wife’s name recovered near Kahlon’s flat. There
had been controversery surrounding the police claims and Vijender said that the police had planted the SUV to
frame him in the case. The Union Sports Ministry on Monday, 1st of April, directed the National Anti-Doping
Agency (NADA) to carry out heroin tests on Vijender. However, NADA has has expressed its inability to test him
for heroin citing World Anti-Doping Agency's protocol.
Background:
On March 3, police recovered 26 kg Heroin worth over Rs. 130 crore from a flat in the Zirakpur area of Mohali
district, following which Kahlon alias Ruby and his associate Rocky were arrested. Vijender Singh’s name was
dragged into the case while questioning Kahlon and Ram Singh.
08 Ajit Pawar apologizes for making objectionable comment on Maharashtra
Apr drought
Ajit Pawar
Maharashtra Deputy Chief Minister Ajit Pawar has tendered an apology, hours after making objectionable
comments on the drought situation in Maharashtra. Addressing a rally in Pune's Indapur, Pawar reportedly
said: "What can we do if there is no water in the dams in Maharashtra? Should we urinate?" Pawar’s remarks
were first highlighted by the Aam Admi Party (AAP) and went on to create a political uproar in Maharashtra,
with opposition parties demanding Powar be removed from the cabinet.
17 Blast near BJP office in Bangalore
Apr Bangalore Blasts
A blast took place in the Malleshwaram area of Bangalore, a crowded residential neighbourhood, at around
10:30 am injuring 8 policemen and 8 civilians. Several vehicles in the area were damaged in the blasts. The
policemen, who were injured, were on duty near the BJP office because of the upcoming Karnataka elections
on May 5. A team from the National Investigation Agency (NIA) has inspected the site.
23 China Troops refuse to retreat from the Indian side of the LAC in Ladakh
Apr Indo-China Relations
On April 15, a set of around 30 Chinese troops entered the Indian side of the LAC at Raki Nala, around 10 km
into what India perceives as the line of Actual control in Depsang plains along the Sino-Indian border in Ladakh,
GKCA Update
1st to 30th Apr
with no signs of retreat till now. The ITBP tents were set up after consultation with the Indian Army and the
Ministry of defence. The ITBP personnel manning the nearest Burtse Border outpost didn’t find the intrusion
unusual as there had been nearly 400 such incursions by Chinese troops in 2012 and around 100 since January
1 this year. With different perceptions of the LAC on either side, the Chinese say that they are stationed 1 km
into their side of the LAC. However, unlike normal times when the Chinese troops retreat almost immediately,
this time, inspite of a flag meeting on April 18 between the local commanders, the Chinese Army stayed put.
India is pursuing the matter at the highest diplomatic level with Beijing and the Indian government has said
that the incident should not mar Chinese Premier Li Keqiang’s visit to India in May which is considered crucial
to progress of relations between the two countries.
Others
25 Sudden rise in cases of depression among IT workers
Apr IT workers’ Depression
Psychiatric and counselling centres across the country are reporting increasing cases of depression, wherein
more and more IT executives are coming in with problems of acute depression, insecurity, low confidence,
dejection, aversion to social life and panic. Earlier, fewer people came with mostly stress-related issues such as
anxiety and lack of appetite. The IT industry which was once known for its fat salaries and swanky offices is in
the face of a serious slowdown. This year, the IT industry will hire 50,000 people less than last year. It is
enforcing a zero-tolerance policy for laggards and small differences in performance ratings make a large impact
on take-home salary. Financial pressures can easily crack someone who lacks nurturing emotional relationships
and even a hint of a negative communication causes heightened fear and anxiety. About 80% of India's tech
workforce is under 40 years of age. They are at the peak of their earning careers and have taken on significant
loan repayment commitments. All these things have contributed to the heightened cases of depression among
techies.
Politics & Government
16 Non-partisan independent review concludes that US engaged in torture
interrogation post 9/11
Apr during
US 9/11 Interrogation
A non-partisan, independent review of interrogation and detention programs in the years after the Sept. 11,
2001, terrorist attacks in the US, conducted by an 11-member panel convened by the Constitution Project, a
legal research and advocacy group, concludes that “it is indisputable that the United States engaged in the
practice of torture” and that the US’s highest officials were responsible for it. The study found that there was
no firm evidence that the torturous interrogation techniques produced valuable information which could not
have been obtained by other means. The review concludes that there was no justification for the torture
employed and it reduced US capacity to deliver moral censure and increased the danger to US military
personnel taken captive. Although the task force didn’t have access to classified documents, this was the most
detailed study of interrogation and detention programmes till date.
23 Malabar royals to claim Rs. 5000 crore from the Saudi government
Apr Rs. 5000 Crore Claim
Forty-five descendants of the Arakkal family, erstwhile rulers of the Malabar Coast, will jointly stake a claim for
Rs 5,000 crore due to them as compensation from the sultanate of Saudi Arabia. In 1971, the Saudi
GKCA Update
1st to 30th Apr
Government had demolished a bungalow built in 1848 by Mayin Kutty Keyi, married to Arakkal Beevi of the
Arakkal family; to provide shelter to Hajis from Kerala. The Saudi government, at that time, had fixed 1.4
million Saudi riyal as compensation but the amount was not released because of the row between the Keyi and
Arakkal families claiming to be Keyi’s real heirs. However, the Arrakal family pointed it out that the Shariah
follows only the marumakkathaya (matriarchal) system and according to it they were the true heirs. Later, the
Keyi family withdrew its claim. A list of all 45 successors of Arakkal Beevi will be submitted to the Saudi
government through a representative to be appointed with the help of the Indian consulate.
27 Sarabjit Singh, death row convict, attacked in Pakistani Jail
Apr Sarabjit Singh
Sarabjit Singh, a prisoner on death row in Pakistan, has been attacked by inmates armed with bricks in Lahore's
Kot Lakhpat jail. Singh is in intensive care with severe injuries on his head, abdomen, jaws and other body
parts, and has been put on ventilator. Two prisoners have been charged with attempted murder. Pakistan has
granted visas for four family members to visit Sarabjit. His family made a plea to allow them to take him to
India for treatment. Indians throughout the country have protested the attack on Sarabjit and the incident has
incited strong reaction from the government.
Background:
Sarabjit Singh was convicted of spying for India and involvement in a series of bomb blasts in 1990 in Pakistan
in which 14 people died. His family says he is innocent and merely strayed across the border in Punjab by
accident.
28 Greek parliament approves 15,000 civil service job cuts
Apr Greece
The Greek parliament has passed a bill which will see 15,000 state employees lose their jobs by the end of next
year. The new law will overturn the constitutional guarantee for civil servants of a job for life. Some 2,000 civil
servants will lose their jobs by the end of June, another 2,000 by the end of the year, and a further 11,000 by
the end of 2014. State workers who have broken rules will be targeted for dismissal, but many are expected to
be replaced by younger employees in key sectors such as health. The new law is a condition for Greece to
receive loans worth 8.8bn Euros and is part of continuing moves by the centre-right government to cut costs
and ensure more bailout money from international creditors. The new law was vehemently opposed by
protestors outside Parliament.
28 Center-right parties return to power in Iceland
Apr Iceland
Iceland’s center-left government that restored the country to solvency after the 2008 financial crisis has been
surprisingly voted out of power paving the way for the two largest center-right parties, the Independence
Party and the Progressive Party to return to power. The center-right parties, which many people blamed for
causing the crisis, have won at least 38 of the 63 seats in Parliament, enough to form a coalition government
with a comfortable majority. The center-right government led by the Social Democrats lost even though
Iceland’s economy has grown last year, unemployment rate now is 5 percent down from 10 percent and
inflation is down to 4 percent a year from a peak of 17 percent. Although the government cut spending and
raised taxes to tackle the personal debt problem, it failed to appease the voters who took out loans in foreign
countries. The government’s two big initiatives, rewriting Iceland’s Constitution and applying to join the
European Union, also failed to seize the popular imagination.
GKCA Update
1st to 30th Apr
29 Syrian Government campaigns to persuade United States to change sides,
Prime Minister escapes bomb attack
Apr Syrian
Syria
Syrian Prime Minister Bashar-al Assad is waging an active campaign to persuade the United States that it is on
the wrong side of the Civil War by pointing out the growing number of Islamists in the ranks of the Syrian
rebels. The captured rebels are projected as vicious Islamic extremists who came from all over the world to
wage Jihad in Syria and the government is unofficially relying on a Syrian-American businessman, Khaled
Mahjoub, to tap into the U.S. fears of groups like Al-Qaeda. The Syrian Prime-Minister has even said that the
US and Syria are partners in fighting terrorism. Although the US administration has backed the demand for
Assad’s removal and increased non-lethal aid to Syrian rebels, it has expressed a growing discomfort with the
increase of radical Islamists in the Syrian rebel opposition and remains unwilling to provide armed help to the
rebels and step in more forcefully.
Syrian Prime Minister Wael al-Halqi on Monday, 28th April, escaped an assassination attempt when a bomb
went off near his convoy in Damascus. One of al-Halqi’s bodyguards was killed and one of his drivers is in a
critical condition. The blast exposed the government’s vulnerability in the very seat of President Assad’s
powerbase.
Science and Technology
08 India has world’s highest number of Dengue cases: study
Apr Dengue
A multinational study conducted by a team of Oxford researchers and published by Nature has estimated that
as many as 390 million people across the globe could be affected by Dengue, a rapidly spreading mosquitoborne viral disease, every year. The study estimated that India had the largest number of dengue cases, with
about 33 million apparent infections, where the disease was severe enough to disrupt an individual’s regular
routine, and another 100 million asymptomatic infections occurring annually. Asia bore 70 percent of the
apparent infections that took place since Asia has large number of densely populated areas suitable for disease
transmission. The study’s estimate of 390 million infections was much larger than WHO’s estimate of 50
million infections. The model used in the study could provide a framework to estimate the burden of disease.
11 Scientists make brains transparent, enable viewing of neurons
Apr Transparent Brains
Scientists at Stanford University have made a whole mouse brain, and part of a human brain, transparent so
that networks of neurons that receive and send information can be highlighted in stunning color and viewed in
all their three-dimensional complexity without slicing up the organ. Unlike earlier methods, this new process,
called Clarity by its inventors, preserves the biochemistry of the brain so well that researchers can test it over
and over again with chemicals that highlight specific structures and provide clues to past activity. This new
method might help reveal the foundations of serious mental disorders like schizophrenia, autism, posttraumatic stress disorder and others. The brain is put in a soapy substance called hydrogel and an electric
current is applied, which drives the solution through the brain, washing out the lipids. The brain then becomes
transparent, so it may be infused with chemicals, that also have a dye attached, that show fine details of its
structure and previous activity.
GKCA Update
1st to 30th Apr
13 World’s largest telescope to be built in Hawaii
Telescope
Apr Largest
The University of California system, the California Institute of Technology and the Association of Canadian
Universities for Research in Astronomy have received approval from the Hawaii government to build the
world’s largest telescope at the summit of Hawaii’s Mauna Kea volcano. The telescope’s segmented primary
mirror, which is nearly 30-metre-long (100 feet), will give it nine times the collecting area of the largest optical
telescopes in use today. Its images will also be three times sharper. China, India and Japan have signed on to
be partners in the project and the University of Hawaii is also involved because it leases the summit land from
the State of Hawaii. The project faced opposition from native Hawaiian groups and environmentalists, but has
ultimately got the Hawaiian government’s approval which has imposed a number of conditions including a
requirement that employees be trained in culture and natural resources.
14 Scientists make laboratory engineered kidneys
Apr Laboratory Grown Kidney
Researchers at Massachusetts General Hospital have created engineered kidneys and transplanted them into
rats where they started to produce urine. The kidney is one of the most complicated organs reproduced in the
laboratory. Although the reengineered kidneys were less effective than natural ones, it is a major
advancement in the field of regenerative medicine. The researchers' vision is to take an old kidney and strip it
of all its old cells to leave a honeycomb-like scaffold. The kidney would then be rebuilt with cells taken from
the patient. Researchers followed the same process for a rat kidney which was regenerated in the laboratory.
The engineered kidneys, if successfully created, have two major advantages over current organ transplants.
The tissue would match the patient, so they would not need a lifetime of drugs to suppress the immune
system to prevent rejection. It would also vastly increase the number of organs available for transplant, since
the rejected organs could be used as templates for new ones.
25 Scientists engineer quantum biology molecules in lab
Biology
Apr Quantum
For the first time scientists at the University of Chicago have engineered a series of molecules that show
quantum effects similar to the efficient mechanism of light transfer happening in plants. Aside from other
benefits, this would lead to the production of artificial energy-transfer devices which could use the mechanism
efficiently. Although, biological light-harvesting systems are very complex, the model systems engineered by
the group are simpler yet manage to capture the physics involved. The discovery of this molecule series and
the mechanism of energy transfer may initiate the development of synthetic light harvesters which could lead
to highly efficient and green energy manufacturing units in the future.
World
05 World Health Organization (WHO) confirms 5 deaths from bird flu in China
Apr China Bird Flu
The World Health Organization (WHO) has confirmed that there have been 5 deaths from a new bird-flu virus.
There have been 11 laboratory-confirmed cases of the H7N9 Bird flu virus which has been not been seen
previously in humans. The WHO has however said that there has been no evidence of human-to-human
transmission of the virus and tests suggested that it could be treated with anti-influenza drugs like Tamiflu and
GKCA Update
1st to 30th Apr
Relenza. The Chinese government is closely monitoring bird flu cases and has advised people to maintain
good personal hygiene including washing hands frequently and avoiding contact with sick or dead animals.
08 WikiLeaks reveals Rajiv Gandhi may have worked as middle-man in fighter
aircraft deal
Apr WikiLeaks
WikiLeaks in its latest revelation has said that former Prime Minister Rajiv Gandhi may have worked as a
middleman for Swedish company Saab-Scania, which had tried to sell its Viggen fighter aircraft to India in the
1970s, much before he became Prime-Minister. However, Saab-Scania could not acquire the deal as it went to
British SEPECAT Jaguar. According to the latest bunch of classified cables of the US administration released by
WikiLeaks, Rajiv was considered to be a valuable negotiator because of his family connections. The first cable
said that former Air Marshal OP Mehra's son-in-law was the chief negotiator for the Jet fighter deal, but it does
not give his name. The Congress has denied WikiLeaks’ claims saying that the last line of the cable says that it
couldn’t be confirmed whether Rajiv was a negotiator for the deal.
08 Former British Prime Minister Margaret Thatcher dies at 87
Apr Margaret Thatcher
Former British Prime Minister Margaret Thatcher, aged 87, has died in London following a stroke. Thatcher was
suffering from health related problems for the last few years. She was Prime Minister of U.K. from 1979 to
1990 and was the leader of the Conservative Party from 1975 to 1990. Thatcher was the longest serving British
Prime Minister of the 20th century and earned the nickname of ‘Iron Lady’ because of her tough stand on
governance and foreign policy issues. She led Britain into war with Argentina over the Falkland Islands in 1982,
which Britain won and resulted in her re-election in 1983. Thatcher had led her Conservative Party to three
election victories and had initiated several significant changes in Britain’s political scenario.
17 Rare Indian pink diamond, Princie, sells for more than $ 39 million
Apr Princie Diamond
One of the largest pink diamonds in the world called the Princie diamond has been purchased by an
anonymous bidder from Christie’s auction house in New York for more than $39.3m (£25m). The 34.65 carat
diamond, which is supposedly the third largest pink diamond in the world, was found 300 years ago in ancient
diamond mines of Golconda in southern India. The diamond was once owned by the Nizam of Hyderabad, who
was proclaimed the richest man in the world by Time magazine in 1937. All four of the world's top pink
diamonds have been found at Golconda, which has some of the earliest known diamond mines in the world,
producing the stones as early as 800BC.
19 7.0 magnitude earthquake strikes Northern Japan and Eastern Russia
Apr Japan, Russia Earthquake
A 7.0 magnitude earthquake has struck off far northern Japan and far eastern Russia around midday on Friday,
19th April. The tremor around midday on Friday was in the Pacific Ocean at a relatively shallow depth of 10
kilometers (6.2 miles). The epicenter was 58 kilometers (160 miles) east-northeast of Kuril’sk, Russia, and 528
kilometers (328 miles) northeast of Nemuro, Japan. Though there might be sea changes, there were no
damages.
GKCA Update
1st to 30th Apr
22 185 killed in Nigerian fighting
Apr Nigeria
185 people in a fishing community were killed in a fierce fighting between the military and Boko Haram Islamic
insurgents in Nigeria’s northern state of Borno. The military said that the insurgents used human shield and
attacked soldiers with rocket propelled grenade and sophisticated machine guns. In similar fights in the past,
soldiers had been accused of shooting civilians. Boko Haram has been carrying out attacks in northern Nigeria
since 2009.
23 Boston bombings suspect says older brother was the driving force behind
attack
Apr the
Boston Bombings
Boston Marathon bombing suspect Dzhokhar Tsarnaev has told investigators that his older brother Tamerlan,
who was killed in the bombing, was the driving force behind last week's attack and that no international
terrorist groups were behind them. Tsarnaev said that his elder brother wanted to protect Islam from attack.
Investigators have said that a lot of investigation was left to confirm that no others were involved in the attack.
Tsarnaev has been charged with using and conspiring to use a weapon of mass destruction resulting in death,
and one count of malicious destruction of property by means of an explosive device resulting in death.
25 Taiwan confirms first H7N9 bird flu case
Apr Bird Flu
Taiwan reported the first case of the H7N9 bird flu outside of mainland China. The 53-year-old patient, who
had been working in the eastern Chinese city of Suzhou, showed symptoms three days after returning to
Taiwan via Shanghai and is currently in a critical condition. Tourist arrivals in Taiwan, this season, are expected
to be less after the H7N9 virus affected 100 people in the mainland, killing more than 20 of them.
25 U.N. to establish peacekeeping force for Mali
Apr Mali
The United Nations Security Council has voted to establish a peacekeeping force for Mali composed of 11,200
soldiers and 1,440 police officers. The resolution says that the French Troops deployed in January to drive out
Islamist Militants out of the north, will intervene, should the peacekeeping troops face an imminent and
serious threat. The mandate for the force, called the Multidimensional Integrated Stabilization Mission in Mali,
or Minusma, says it will be deployed to help establish stability and, along with a European training mission, to
resurrect the Malian armed forces.
GKCA Update
1st to 31st May
Starred Articles
01 Apple Inc sells $17 billion in bonds in record deal
> Apple
May Corporate
In a record deal, Apple Inc. sold USD 17 billion in bonds to raise money to pay shareholders in an effort to
pacify them regarding the company's shrinking profit margins and reverse a 37 percent drop in its share price
during the past 7 months, as it faces tough competition in the mobile computing market. However, the
downturn in Apple's stock price hasn't dampened investors' entusiasm for Apple bonds. Although, Apple has
USD$145 billion in cash, enough to run the $USD 100 billion cash return programme, Apple does not plan to
bring the money to the US from its overseas accounts as the federal corporate tax rate is high and as such it
makes sense for Apple to borrow a large sum of money rather than pay a hefty tax bill.
02 Sarabjit Singh dies in Pakistan hospital
May India > Sarabjit Singh Case
Indian death row prisoner Sarabjit Singh died of cardiac arrest in a Lahore hospital after being comatose for
nearly a week following a brutal assault by other inmates of a high-security jail in Lahore. Sarabjit, 49,
sustained severe injuries, including a fractured skull, when at least six prisoners attacked him in a barrack at
Kot Lakhpat Jail in Lahore. The Indian government and the opposition parties have called it a cold-blooded
murder and accused Pakistan of failing to provide protection to Indian prisoners languishing in Pakistani jails.
Pakistan has assured India that it will hand over Sarabjit's Singh's body after completion of formalities.
03 RBI cuts lending rates by 25 basis points; still no changes in retail lending
rates
May Economy > RBI
The Reserve bank of India has reduced its key lending rate (repo rate) from 7.50 per cent to 7.25 per cent but
has kept the Cash Reserve Ratio (CRR) unchanged at 4 percent. However, the rate cut of 25 basis points was
too small to have an impact on retail lending rates immediately. RBI said that the repo rate cut wasd in
accordance with the measures set forth since January last year towards supporting growth in the face of
gradual moderation of headline inflation.
Repo rate is the rate at which banks borrow funds from the central bank. The Cash Reserve Ratio (CRR) is the
portion of total deposits banks are mandated to keep with the Reserve Bank of India.
04 CBI books railway minister's nephew and several others in a 10 crore bribery
scam
May Politics and Government > Railgate
The Central Bureau of Investigation (CBI) has booked railway minister Pawan Bansal's nephew Vijay Singla for
allegedly demanding Rs. 10 crore as bribe for getting Mahesh Kumar, General Manager (Western Railways),
posted as Member (Electrical) Railway Board, which is considered next to Railway General Manager in
hierarchy. Singla, used to look after the Bansal's business interests and is involved in running his campaign in
Chandigarh, Bansal's Lok Sabha constituency. Singla and Sandeep Goyal, a businessman and official railway
contractor, were arrested in Chandigarh for allegedly accepting Rs 90 lakh as part payment from Narayan Rao
Manjunath,a Bangalore-based industrialist and the conduit of Mahesh Kumar. Bansal has said that he has no
business links with his nephew and denied any wrongdoing. The CBI would also question Bansal’s private
GKCA Update
1st to 31st May
secretary Rahul Bhandari as it has found close links between him and Vijay Singla. Ajay Garg, a close aide of
Vijay Singla and an alleged middleman in the case, has also been arrested after he surrendered in a Delhi court.
The CBI is also investigating the involvement of four-five more senior officers and is looking into all top-level
appointments in the railway ministry in the recent past. Meanwhile, Sushil Daga, an associate of Manjunath
and an accused in the case, is all set to turn approver for the CBI.
06 CBI alleges law minister and officials in the PMO changed coalgate enquiry
reports
May status
Politics and Government > Coalgate
CBI director Ranjit Singh has filed an affidavit in the Supreme Court stating that law minister Ashwani Kumar
had deleted a finding from the draft report of the enquiry about the screening committee not preparing any
chart about the coal block applicants and also a sentence about the scope of the enquiry. The letter also
alleged that the tentative findings about the non-existence of a system regarding specific weitage/points was
deleted at the instance of the officials of the Prime Minister's Office and the Coal Ministry. The affidavit also
mentions that Attorney General G. E. Vahanvati too asked for changes. The CBI's submission contradicts the
stand taken by the Law Minister and the AG, who had refuted the allegation that they had suggested changes
in the draft report.
06 Chinese Army pulls out from Depsang Plains in Ladakh, ends faceoff
May Politics and Government > Indo-China
The India-China faceoff that started on April 15th drew to a close on Monday, May 6th after the Chinese Army
withdrew from the Indian side of the LAC in Ladakh's Depsang plains. The Indian ambassador to Beijing relayed
that India was ready to act tough and would cancel the tour of foreign minister Salman Khurshid to Beijing as
well as the visit of the Chinsese PM Li Keqiang to India which might have forced Beijing to withdraw troops.
However, there was talk of a deal about China agreeing to pull back its troops from ladakh only if India pulled
down a bunker, strategically located in Chumar in Ladakh. Indian authorities said that there was no such deal
and in the withdrawal tradeoff with the Chinese, the Indian Army had only pulled down a tin-shed which it had
erected on April 18th, 7-8 km down from where Indian troops conduct regular patrols. China is keen to prove
its ability to get along with neighbours and has said that India and China have reached an agreement to resolve
the issue in the western section of the border.
10 Congress elects Siddaramaiah as Karnataka's new chief minister
May Politics and Government > Karnataka CM
The Congress has elected K. Siddaramaiah as Karnataka’s new chief minister through a process of secret ballot.
This is the first ever instance in which the Congress party has adopted this method to select a leader.
The Congress earlier this week won the Karnataka Assembly elections with a comfortable majority of 121 MLAs
in the 224-member House, defeating the BJP which won only 40 seats, down by 70 compared to the 2008 poll.
11 Congress sack Aswani Kumar and Pawan Bansal
and Government > Congress
May Politics
The Congress has sacked Law Minister Ashwani Kumar and Railway Minister Pawan Kumar Bansal to dismiss
the impression of protecting the accused ministers. The Congrss was forced to take the decision after Mr
Kumar faced the charge of openly intervening in the CBI’s investigation into the coalfield allocation scandal,
and Bansal was found to be involved in a 10 crore Railway cash-for-jobs scam.
GKCA Update
1st to 31st May
12 Nawaz Sharif wins Pakistan polls, likely to serve third term as Prime Minister
May World > Pakistan Polls
Nawaz Sharif’s Pakistan Muslim League – N (PMN-L), won an outstanding victory after millions of Pakistanis
braved Taliban threats and voted in the landmark election that marked the first transition from one civilian
government to another in the country’s 66-year history. Unofficial election results represented a comeback for
Sharif, who was deposed as prime minister in a 1999 military coup and spent years in exile. Sharif is set to
serve a third term as Prime Minister and pledged on improving relations with India. Sharif also said that he
would end Pakistan’s involvement in the US-led war on terror which might cause concern among Western
leaders as it could lead to militants having greater freedom to operate in Pakistan. Sharif has invited all
political parties including that of rival Imran Khan to sit together and solve the country’s problems.
13 Tata Steel to book $1.6 billion impairment charge
May Corporate > Tata Steel
Tata Steel will write off goodwill and impair assets worth $ 1.6 billion, for the financial year that ended March
31st, for the loss of value of Tata Steel Europe (TSE), and other overseas assets in Thailand and South Africa.
Although goodwill write off may affect its FY2013 financial performance, there will possibly be no impact on its
cash flows.
13 Samsung announces superfast 5G wireless transmission breakthrough
> Samsung
May Corporate
Samsung Electronics said that it has successfully tested superfast fifth generation (5G) wireless data
transmission of more that one gigabyte per second over a distance of two kilometres. The new technology
might not be available before 2020, but once launched, would be able to transmit massive data files including
high quality digital movies practically without limitation. Samsung has found out a way to harness millimeterwave bands, which had, till now, proved to be an obstacle in launching 5G transmission. 5G would eventually
allow users to download an entire movie in one second.
15 India back on the Olympic fold after Indian Olympic Association accepts
Olympic Committee’s demands
May International
India > IOC
India is back in the Olympic fold after the Indian Olympic Association agreed to International Olympic
Committee's demands of holding fresh AGM and election and also to declare the December 5 elections, which
elected Lalit Bhanot, null and void. The fresh IOA elections will be held in a month under the supervision of
Election Commission. India was suspended five months ago for failing to adhere to the Olympic charter.
16 Gold demand in India rises by 27 percent in 1st quarter
May Economy > Gold
Demand for gold in India rose by 27 per cent to 256.5 tonnes during the January-March 2013 quarter, while its
imports declined by 5.7 per cent to 215 tonnes. In the previous year, the demand for gold stood at 202.1
tonnes and imports at 228 tonnes. Gold demand in India for jewellery and investment is likely to remain
strong. However, imports are low as stockists had already purchased heavily in the previous quarter in
anticipation of rise in import duty. At the global level, gold demand fell by 13 per cent to 963 tonnes in the first
quarter of 2013 as strong demand for gold jewellery, bars and coins was exceeded by substantial net outflows
from gold exchange traded funds (ETFs).
GKCA Update
1st to 31st May
17 Government implements National Pharmaceutical Pricing Policy to reduce
of essential drugs by 80 percent
May prices
India > National Pharmaceutical Pricing Policy
The government has issued the Drug Price Control Order (DPCO), paving the way for implementation of the
National Pharmaceutical Pricing policy which will reduce prices of medicines by 20-25 percent and in case of
some life-saving drugs by as much as 80 percent. Prices of 652 formulations under 27 therapeutic areas like
anti-allergic (cetrizine), cardiac (aten), gastro-intestinal medicines (ocid), pain-killers (paracetamol) and antidiabetic drugs (insulin) are expected to come down. Others in the list include anti-fungal, anti-tuberculosis,
anti-leprosy, anti-hypertensives and cancer drugs. The DPCO 2013 will regulate prices of drug formulations on
the basis of a market-based mechanism, as against a cost-based system which existed till now.
19 China resumes cyber attacks on US agencies
and Government > US-China
May Politics
Hackers working for the People’s Liberation Army (PLA) of China have resumed attacks on US government
agencies and private organisations after remaining on the low for three months following direct accusations by
the US administration. Private cyber security company, Mandiant has said that hackers have resumed attacks
on many of the old victims. The hackers are behind scores of thefts of intellectual property and government
documents since the past five years and have been targeting US defence contractor Lockheed Martin and
companies with access to the nation’s power grid. The Chinese hackers had changed base and removed spying
tools after being discovered in February this year. However, Chinese attack on US cyberspace seems to be back
in full swing and US officials said that the matter would have to be taken up once again with Chinese
authorities.
20 Yahoo to buy blogging service Tumblr for $ 1.1 bn
> Yahoo
May Corporate
Yahoo Inc will buy blogging service Tumblr for $1.1 bn in cash. This is the largest deal made by Marissa Mayer,
since she took charge as CEO of Yahoo last July. The Tumblr team will remain unchanged and David Karp will
remain the Chief Executive Officer of Tumblr. David Karp co-founded Tumblr with Marco Arment in 2007 and
has a 25percent stake in the privately owned company. The $ 1.1bn price tag represents a significant increase
from Tumblr’s $800million valuation when it raised money from private investors.
20 Chinese Premier LI Keqiang visits India, pledges to resolve border issue
May Politics and Government > Indo-China
Chinese Premier Li Keqiang visited India on Sunday, 19th May, in his maiden foreign trip after assuming office.
Li pledged his commitment to peace and tranquility and urged the need to end the border row. Singh
conveyed to Li that incidents like the recent standoff at Ladakh could hamper relations between the two
countries. It was agreed that joint representatives from the two countries would meet soon to continue
discussions on a fair, acceptable and mutually acceptable boundary settlement. The two sides also discussed
trade ties and other bilateral issues and signed eight agreements. Despite border tensions, China is one of
India's top trading partners and both countries have already agreed to a new $100bn (£65bn) bilateral trade
target for 2015.
Meanwhile, China has assured Pakistan that its improved relations with India and the regime change in
Pakistan won’t affect its healthy relations with Pakistan.
GKCA Update
1st to 31st May
21 Indian-American teen Esha Khare invents world’s first 20-sec charger
May Science and Technology > Invention
An 18-year old Indian American teen, Esha Khare from Saratoga, California, has invented a tiny super-capacitor
device that fits inside mobile phones and can potentially charge a cell phone in less than 20 seconds. Esha has
been awarded the Young Scientist Award by the Intel Foundation and has received a prize award of USD
50,000. The device can last for 10,000 charge-recharge cycles, compared with 1,000 cycles for conventional
rechargeable batteries. The device is very flexible and can fit inside other portable electronic devices besides
mobile phones.
24 India to issue 27000emergency certificates to enable Indians working in
Saudi Arabia to return home
May World > Saudi Arabia Nitaqat Law
India will issue 27000 emergency certificates to its citizens working in Saudi Arabia, to allow them to return
home, after a new labour policy came into force there. The new law called the 'Nitaqat' law makes it
mandatory for local companies to hire one Saudi national for every 10 migrant workers. There has been a rush
for emergency travel documents with about 60, 000 applicants looking for one, following widespread
perception that the new policy will lead to denial of job opportunities for a large number of Indians working
there.
25 Scientists develop artificial skins for robots
and Technology > Artificial Robot Skin
May Science
The European Union-funded project 'Skin-based technologies and capabilities for safe, autonomous and
interactive robots' (ROBOSKIN), has developed artificial skins for robots and new sensor technologies and
management systems which will give robots an artificial sense of touch and improve the way robots work in
unconstrained settings, as well as their ability to communicate and cooperate with each other and with
humans. The artificial skin is modelled largely on real skin, which has a tiny network of nerves that sense or
feel changes like hot/cold or rough/smooth.
26 27 people killed in Maoist attack on Congress motorcade
> Maoist Attack
May India
27 people were killed and more than 30 injured when 250 Naxalites opened fire on a 16 car Congress
motorcade in Chattisgarh’s Darbha valley, which is a part of Bastar region in Jagdalpur district. Among the
people dead was the Pradesh Congress Committee Chief Nand Kumar Patel, his son Dinesh and former home
minister of state Mahendra Karma, architect of Salwa Judam, a people's movement against Naxalism. The
Maoists used country-made and sophisticated automatic weapons and fired indiscriminately. The Darbha
valley has always been an area of concern for security forces and various plan s to counter the Maoist threat
had to be shelved because of opposition from within the Congress. An investigation into the attacks has begun
but no arrests have been made so far.
27 Economists predict Q4 growth at 4.8 percent
> Growth
May Economy
Economists have forecasted the March Quarter GDP growth at 4.8 percent, pulling down the overall economic
expansion to a decade low of around five percent. The government however expects GDP growth for March
Quarter to the tune of 5.2 percent. Till the third quarter, the economy grew 5.1 per cent. The March quarter
GKCA Update
1st to 31st May
GDP growth is expected to remain less than 5%, due largely to a reduction in government spending. However,
the lower interest rate and improving investment combined with pick up in capital goods and consumer goods
production and improvement in exports should result in better growth from the June quarter.
28 Iran offers oilfields on lucrative terms to prod India into buying more oil
and Government > Indo-Iran Relations
May Politics
Iran offered oilfields on lucrative terms and a host of other benefits to prod India into buying more oil, after
India reduced its crude purchase from Iran to 13 million tonne in 2012-13 from 18 million tonne in the
previous year following US and the EU sanctions which have blocked international gateways for payments. Iran
has offered to re-route the Iran-Pakistan-India gas pipeline through an under-sea route to avoid going through
Pakistan as India had previously expressed safety concerns. Alternatively, Iran offered to ship the gas in its
liquid form (liquid gas) via Oman and also offered a production sharing contract to ONGC Videsh Ltd for the
Farzad-B gas field, which is estimated to hold 13 Trillion cubic feet of recoverable reserves. Iran has also
offered insurance cover to refineries. However, the Indian side has been skeptical about Iran’s assurances
because of Western sanctions and the absence of any financial intermediary.
30 TOP five Indian IT companies exceed global IT services industry growth
> IT Industry
May Corporate
The top five India-based IT services companies, TCS, Cognizant, Infosys, Wipro and HCL Technologies, grew by
13.3% to reach a combined revenue of $34.3 billion in 2012, exceeding the global IT services industry growth
of 2%. The global industry recorded a growth of 7.7 percent as against a recorded growth of 21.8% percent by
the five India-based IT companies. However, the growth in 2012 is much lower than that of 2011.
Samsung Electronics to use Intel Corp Processor for one of its top-tier
31
android tablets
May Corporate > Samsung – Intel
Samsung Electronics has chosen an Intel Corporation processor Clover Trail+ mobile chip for at least one
version of its Galaxy Tab 3 10.1. The deal comes as a major success for Intel which has long been trying to
establish its footprint in the mobile market. Samsung has previously used chips designed with energy-efficient
technology from the UK's ARM Holdings for its best-selling mobile devices. It employs Intel processors for its
line of Microsoft Windows "ATIV" tablets, a much smaller market compared with devices based on Google Inc's
Android. Now, Samsung will unveil new ATIV tablets using Intel chips at a June event in London.
31 India’s economic growth falls to 5 percent, India surpasses Japan as the
world’s 3rd largest economy
May Economy > Growth
India’s economic growth slowed to 4.8 percent in the January-March quarter and fell to a decade low of 5
percent for the entire 2012-13 fiscal as compared to 6.2 percent growth for the 2011-12 fiscal. Growth was
primarily affected by poorly performing farm, manufacturing and mining sectors.
The Organisation for Economic Cooperation and Development has said that India has recently probably
surpassed Japan as the world’s third largest economy after the US and China. Until 2020 China is likely to have
the highest growth rate among major countries, but could then be surpassed by India.
GKCA Update
1st to 31st May
Japan's consumer prices fell by 0.4% in April, the sixth month of decline, even as it tried to move out of years
of deflation and set a 2 percent inflation target for its central bank. The core consumer price index figure,
which includes oil products but excludes volatile prices of fresh food, followed a 0.5% drop in March.
Bank Specific
10 Taxpayers to never rescue a failing bank again, biggest US banks asked to
less to avoid crisis
May borrow
Bank Bailouts
Bank bailouts in the US have been widely criticized and the common opinion is that taxpayers should never
again rescue a failing bank. In order to ensure that government intervention is not required in case of a future
crisis, international regulators are requiring the biggest banks to borrow less. Three years ago, the USA passed
laws to liquidate a collapsing financial institution and end the perception that some banks are too big to fail. At
that time, Obama had said that because of this reform, US taxpayers would never have to fund bailouts again.
However, bondholders who lend money to the six biggest US banks believe that the government would once
again bail out bankrupt institutions in case of a crisis and as such they are willing to accept lower returns, a
marketplace subsidy worth 82 billion from 2009 through 2011. The financial advantages for the six biggest
banks, Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan
Stanley and Wells Fargo & Co. since the start of 2009 amounted to at least $102 billion and because of the
implicit promise of bailouts, ratings agencies have boosted the credit grades of the six banks, which makes
borrowing less expensive for them.
Corporate
01 Honda's excise duty payment on discounted prices comes undere scanner,
to pay 164 crore more
May asked
Honda
The Central Board of Excise & Customs (CBEC) has served a show-cause notice on Japanese car maker Honda,
demanding that it pay Rs 164 crore more as excise duty, on the grounds that the levy should have been paid on
the cost of production of the cars, and not on their discounted sales price. This follows the Supreme Court
judgement in the Fiat case last year, that if a company sells products at a loss for a long period because of
commercial considerations or under competitive pressures, then price is not the sole consideration and excise
duty should be paid on manufacturing cost plus a 'reasonable' profit margin. Honda had been facing a slump in
demand in India following a shift from petrol to diesel cars and had been offering discounts on models such as
the Brio and Jazz.
Excise duty is an inland tax on the sale of goods produced domestically. It is paid by the manufacturer, but
often passed on to the customer.
02 Bharti Airtel reports 50 percent fall in quaterly profit
Airtel
May Bharti
Bharti Airtel's net profit fell to Rs 509 crore ($94 million) for its fiscal fourth quarter to end-March, from Rs
1006 crore reported a year earlier. Although, it was expected that the company would report a net profit of Rs
741 crore, it was cut by higher net interest costs and a tax charge. The company's revenues were in line with
estimates at Rs 20,488 crore, up 1.23 per cent, as compared to Rs 20,239 crore a quarter ago.
GKCA Update
1st to 31st May
08 India-born Ivan Menezes apointed CEO of Diageo
May Diageo
India-born Ivan Menezes has been appointed as the CEO of Diageo, the world's largest drinks company and the
maker of coveted brands such as Johnnie Walker, Smirnoff, Captain Morgan etc. Menezes will replace longserving CEO Paul Walsh. Ivan was frontrunner for the job after his elevation as the Chief Operating Officer
(COO) last year and his appointment as CEO comes six months after he led the $2.6 billion takeover of Vijay
Mallya's United Spirits Ltd. (USL). A graduate of St. Stephen's college, Menezes has studied management from
IIM-A and Kellogg School of Management. Ivan's appointment as CEO reflects the growing trend among
multinationals to appoint Indians for the top spot.
09 Sony Corp. expects smartphone sales to rise to 42 million this financial year
May Sony Corp
Sony Corp. expects that smartphone sales will rise to 42 million in the year to March 31, compared to 33
million smartphones sold in the business year just ended. Sony is trying to increase its hold and establish itself
prominently at no.3 in the global smartphone market behind Apple Inc. and Samsung Electronics Co.
10 YouTube starts paid subscription service
May You Tube
Google’s You Tube, the world’s largest video site, is venturing into pay television by starting a paid subscription
service with 30 content creators. It will allow creators to set subscription fees and accept advertisements, at
their discretion, for the channels they create. You Tube will subsidize the development of new content
offerings and will feature content from traditional TV and film producers. Till now, YouTube has spent more
than $100 million to help about 150 media partners create and promote specialized YouTube video channels
dedicated to topics ranging from food to sports. The launch featured children's videos from National
Geographic and videos from cable channel HDNet.
14 Ranbaxy to pay $ 500 million to US Justice Department for settlement of
charges
May felony
Ranbaxy
Gurgaon based Ranbaxy Laboratories Ltd. will pay $500 million as penalty to the US Department of Justice to
settle a criminal and civil lawsuit related to the manufacture and distribution of three adulterated drugs made
at two of Ranbaxy’s manufacturing facilities in Paonta Sahib and Dewas in India. This is the largest drug safety
settlement case of a generic drug maker in the US and Ranbaxy will pay $150 million for a criminal fine and
forfeiture and $350 million for civil claims.
15 Air Asia appoints Mittu Chandilya as CEO of India operations
May Air Asia
Air Asia has appointed Chennai born Mittu Chandilya to head the operations of the company in India. 32 year
old Mittu will be amongst the youngest CEO's to operate an airline in the country. Chandilya, educated at
INSEAD in France, was formerly the head of services practices for Asia Pacific at Egon Zehnder International, an
advisory firm. The appointment of the India CEO was a much awaited decision as the Home Ministry would
give a clearance to Air Asia to start operations only after the appointment of the CEO and the board. The
airline company has tied up with Indian partners Tata group and Telstra Tradeplace to form the joint venture
and operate in India.
GKCA Update
1st to 31st May
21 iGATE terminates employment of CEO Phaneesh Murthy for sexual
misconduct
May iGate
iGATE has terminated the employment of president and Chief Executive Officer Phaneesh Murthy as a result of
an investigation surrounding a relationship that Murthy had with a subordinate employee, Araceli Roiz, and a
claim of sexual harassment. The Board has appointed Gerhard Watzinger, former CEO of iGATE Solutions
business, as President and CEO on an interim basis.
In 2003, Murthy was involved in a similar sexual harassment case involving Reka Maximovitch, his former
executive secretary at Infosys, where he was head of sales .Reka had filed a lawsuit for sexual harassment and
wrongful termination of employment. Infosys sacked Phaneesh and settled the lawsuit out of court for $3
million.
30 FIPB to allow Jet-Etihad deal only after clarity on the issue of control in a
May firm
Jet-Etihad Deal
The Foreign Investment promotion Board (FIPB) has said that it would give its approval to the Jet-Etihad deal,
only after the Centre clarifies the issue of control in a firm which is in line with the new Companies Bill.
Currently, the Finance Ministry, in consultation with the Department of Industrial Policy and Promotion (DIPP),
is in the process of defining ‘control’ in companies. According to DIPP, if 51% equity is held by the domestic
shareholder, the company is seen as Indian and controlled by it. Once the Centre clearly defines ‘control’ in a
firm, along with the shareholding, the stakeholders’ agreement would also be examined to see whether any
special management rights have been conferred to the minority stakeholder that allows it to control the
company. This means that even if Jet amends its Articles Of Association (AOA) in such a manner that it
complies with SEBI rules, it would have to wait for approval from the FIPB.
30 China’s Shuanghui to take over US pork producer Smithfield Foods in a $ 4.7
deal
May billion
US-China
China’s biggest pork firm Shuanghui International will take over USA’s biggest pork producer Smithfield Foods
in a $ 4.7 billion deal, which is the largest takeover of an US company by a Chinese rival. Shuanghui has agreed
to pay cash for Smithfield Foods, which including debt, values the firm at $7.1bn. The deal highlights the
growing power of Chinese firms and their desire to set a strong foothold on the global market through the use
of global resources. Smithfield said it has accepted Shuanghui's bid of $34 per share for the company.
However, rival bidders may emerge since Smithfield has another 30 days to hold talks with other interested
parties.
Economy
13 RBI unearths various discrepancies in banking operations
May RBI
The Reserve Bank of India (RBI) has found out various unethical practices of banks including non-compliance of
KYC norms and fictitious PAN in its probe following the Cobrapost sting operation which accused banks of
GKCA Update
1st to 31st May
money laundering practices. RBI has completed its investigation and has said that it would take necessary
steps on the banks for violating prudential banking norms.
16 Japan achieves robust growth rate, Europe falls deeper into recession
May Japan-Europe
In stark contrast to Europe which has fallen deeper into recession, Japan ended two decades of stagnation and
posted a robust growth rate of 3.5 percent helped by new measures adopted by Japan’s Prime Minister Shinzo
Abe. Since taking office in December, Mr. Abe has pushed the three-arrowed approach which involves a strong
expansionary monetary policy, increased fiscal spending and structural changes to improve competitiveness.
The fall in yen against the dollar, have improved exports along with rising consumer sentiment and household
spending. All these have helped Japan come back remarkably from back to back recession in 2011 and 2012. In
reality, the more countries adopt austerity measures, the more the debt ratio increases. However, Europe,
seems reluctant to follow the Japanese model of growth and particularly in Germany, the hostility towards
unconventional measures is greater than in any European society. German economists feel that the period of
retrenchment is near and the austerity measures would yield promised gains very soon.
23 Finance Ministry agrees to pay oil subsidy bill of Rs. 40,000 crore
May Oil Subsidy
The Finance ministry has agreed to pay Rs. 40,000 crore of pending subsidy bill to the public sector oil
marketing companies for the last fiscal but has laid down a condition that the pricing of oil products would be
reviewed by a committee, that will give its report within two months. The finance ministry had suggested that
petrol and diesel to be priced at a rate they can fetch in the export market, rather than current practice of
pricing the fuels after adding transportation and customs duty to the international price. However, the
government would retain the present system of trade parity pricing for the public sector companies by
claiming it would generate the surplus necessary for investments in the sector which implies that the
government will stick to the current method of calculating retail prices of petrol and diesel.
31 New RBI norms to lead to a surge in bad loans
May RBI
The Reserve Bank of India has said that from April 2015, banks would no longer have the freedom to relax
repayment norms for financially distressed companies and would have to classify their loans as nonperforming assets which might lead to an increase in bad loans. Classifying a loan as a bad loan forces the bank
to set aside a large portion out of its earnings to make up for loss arising out of a potential default. However,
RBI has made exceptions for project delays in infrastructure and commercial real estate. RBI has also asked
banks to increase provisions on loans restructured from June 2013 to 5% from the present requirement of
2.75% and has made it mandatory for banks to obtain a personal guarantee on all restructuring cases in future.
India
12 Tesco, Walmart and Carrefour seek clarity from the government on retail
FDI norms
May Retail FDI
Retail giants Walmart and Carrefour have sought written clarifications from the Indian government on certain
rules guiding multi-brand retail, including those related to compulsory sourcing of inputs from the small and
medium enterprises (SMEs) and investing in back-end infrastructure. The retailers want written assurances
from the government so that their FDI proposals get easy approvals. One of the main worries of the foreign
GKCA Update
1st to 31st May
retailers is that their suppliers may grow in size and cease to be SMEs once they start supplying to them.
Although retail chain Tesco hadn’t asked the government for a written clarification, it had wanted to know if
sourcing from farmers would qualify as domestic sourcing.
21 Dawood’s man masterminded betting syndicate in IPL, Vindoo Dara Singh
arrested for links with bookies
May IPL Spot Fixing
The mastermind of the cricket betting syndicate is said to be a Dubai-based Dawood Ibrahim man named Sunil
Ramchandani alias Sunil Dubai while the principal bookie referred to as 'Jupiter' in phone intercepts is a person
called Chandresh. He is reportedly close to several politicians, builders and police officers. Police are probing
Dawood’s connection with the bookies and feel that the betting syndicate extends to Karachi, Dubai, Jaipur,
Kolkata and Ahmedabad.
Bollywood actor Vindoo Randhawa, son of late wrestler-actor Dara Singh, was on Tuesday arrested in
connection with the IPL spot-fixing scandal after he was found to be in contact with the bookies.
Background:
The Special Cell of Delhi police had arrested Sreesanth, his Rajasthan Royals teammates - Ajit Chandila and
Ankeet Chavan on May 15 for allegedly indulging in spot-fixing in at least three IPL matches.
27 Amway India Chairman and two directors arrested on charges of financial
irregularities
May Chit Fund Fraud
Network marketing firm Amway's India Chairman and CEO William S Pinckney and two company directors,
Sanjay Malhotra and Anshu Budhraja, were arrested in Kozhikode on charges of financial irregularities
following a complaint by a woman, who claimed to have incurred losses through the network and on the basis
of three cases registered against the company last year. Last year, the crime branch had conducted searches at
Amway offices at Thrissur, Kozhikode and Kannur as part of its crackdown on money chain activities. The
godowns at these centres were closed and goods produced were also seized.
30 CBI wants Anil Ambani and wife to be summoned in 2G spectrum trial
May 2G Spectrum Trial
The CBI has asked a Delhi court to summon Reliance Anil Dhirubhai Ambani Group chairman Anil Ambani, his
wife Tina Ambani and 15 others as prosecution witnesses in connection with the 2G Spectrum trial. The CBI
made the plea after some bank documents pertaining to money transaction of Rs. 997 crore in October 2007
between the DB Group Company and Reliance ADA Group companies, surfaced. Top Reliance executives
Gautam Doshi, Surendra Pipara and Hari Nair are facing trial in the case along with Swan Telecom promoters
Shahid Usman Balwa and Mr. Vinod Goenka, Managing Director of DB Realty Ltd. The CBI had alleged that RTL
used Swan Telecom, an ineligible firm, as its front company to get 2G licenses and the costly radio waves.
GKCA Update
1st to 31st May
Politics & Government
03 Former Health Minister Anbumani Ramadoss arrested
May Hate Speech
Former union minister and PMK youth wing leader Anbumani Ramadoss was arrested by Tamil Nadu police in
connection with an alleged hate speech case filed against him. Ramadoss made this speech at a public meeting
last year. Ramadoss blamed the AIADMK, calling the arrests an act of political vendetta and urged party cadres
to hold peaceful protests against the arrests.
08 US government directly balmes China's military for cyberattacks
May US-China
The US government has directly accused the Chinese government and military of cyberattacks on US
government computer systems and defence contractors, saying one motive could be to map military
capabilities that could be exploited during a crisis. Although almost 90% of cyber espionage in the US
originates in China, the US government has till now avoided directly accusing the Chinese government and
military of unleashing cyberattacks on the US. China's military has denied the allegations and said that the two
countries should cooperate on the global threat of cybercrime.
Science and Technology
02 Harvard scientists invent world's smallest flying robot
May Flying Robot
Scientists of Harvard University have created a robot, the size of a fly, that can perform almost accurate
movements and has the same agility as a common fly. This "robo-fly", built from carbon fibre, weighs a fraction
of a gram and has super-fast electronic "muscles" to power its wings. Just like a real fly, the robot's thin,
flexible wings beat approximately 120 times every second. In future, the robo-fly can be used in rescue
operations like navigating through tiny spaces in collapsed buildings or environmental monitoring to sense
trace chemicals or other factors and could also be used like real insects to assist in the pollination of crops.
02 Scientists develop digital camera with compund eye-like lenses
Lenses Digital Camera
May Compound
A digital camera that has a lens that very closely mimics the compound eye of arthropods in all respects —
wide-angle field of view of nearly 160 degrees, low aberration, high sharpness of vision, and infinite depth of
field has been developed by a team of scientists led by Young Min Song from the University of Illinois at
Urbana-Champaign, U.S. Compound eyes of arthropods are by default hemispherical and have multiple lenses.
Digital cameras available today have a planar sensor with a single lens and the biggest challenge that the
scientists faced was in developing such a hemispherical sensor that has multiple microlenses. They took
advantage of the recent developments in stretchable electronics to achieve this.
GKCA Update
1st to 31st May
05 NASA's curiosity rover back to work after a week-long communication gap
May NASA Curiosity Rover
NASA’s Curiosity rover is back in work and within the command of NASA scientists, after a long communication
gap since early April, when Mars slipped behind the sun from Earth's perspective. The Sun can disrupt
communications between the two planets in this alignment, which is known as a Mars solar conjunction.
Curiosity landed inside Mars's huge Gale Crater in August last year, kicking off a two-year surface mission to
determine if Mars has ever been capable of supporting microbial life.
07 India tops list of most number of newborns who die on the first day
Deaths
May Newborn
A report by US-based 'Save the Children' which ranks 176 countries on maternal and child mortality, says that
more newborns die on the first day in India than in any other country. Every year, over 309,300 children (29%
of global share) in India don't live beyond the first day because of complications associated with preterm birth,
hygiene and maternal health. Despite being more populated, China ranks 4th and accounts for only 5% of the
global share of first-day deaths. Nearly two-thirds of all first-day deaths occur in just 10 countries and most of
these countries have very large populations like India, China and Indonesia. Other countries high up on the list
are Pakistan, Afghanistan and African nations like Nigeria and Ethiopia. Just 1% of the global first-day deaths
occur in developed countries and US tops that list.
12 $325,000 hamburger made from cultured meat developed in laboratory
May Cultured Meat
Dr. Mark Post of Maastricht University has created a five-ounce hamburger assembled from tiny bits of beef
muscle tissue grown in a laboratory. The idea of creating actual meat in the laboratory and not a substitute
made from soybeans and other protein sources has long been a subject of discussion and Dr. Post has found it
extremely difficult and expensive to create cultured meat from stem cells in the laboratory. His burger consists
of about 20,000 thin strips of cultured muscle tissue and the burger was created at a phenomenal cost of
250,000 euros or about $325,000, provided by a donor who so far has remained anonymous. Full-scale
production of cultured meat could greatly reduce water, land and energy use, and emissions of methane and
other greenhouse gases, compared with conventional raising and slaughtering of cattle or other livestock.
However full scale production of cultured meat such that it could be used alongside conventional mate and
compete with it in price is a long way off.
17 Scientists make 3D images without digital camera
Images
May 3D
Scientists from the University of Glasgow’s department of physics and astronomy have found a way to make
sophisticated 3D images without using the conventional digital cameras. Their system uses simple, cheap
detectors which have just a single pixel to sense light instead of the millions of pixels used in the imaging
sensors of digital cameras. The technology could open up affordable forms of 3D imaging and open up new
possibilities including medicine and geography.
GKCA Update
1st to 31st May
23 Government gives go-ahead to quadricycles to ply as public transport
May vehicles
Quadricycles
A government panel has given the go-ahead for the quadricycle to ply as a public transport vehicle within city
municipal limits. Quadricycles are considered to be safer than three-wheeler as they have fully enclosed body
structure with hard top and doors. Their maximum speed limit and engine capacity are considerably lower
than that of a regular car. Quadricycles will have to carry a ‘Q’ sign in order to distinguish them from cars.
However, these vehicles are unlikely to be allowed as personal transport.
24 Cockroaches evolve taste buds that make sweet insecticide baits taste bitter
May Cockroach
North Carolina State University entomologists have discovered cockroaches’ aversion to glucose, the simple
sugar that is a popular ingredient in cockroach-bait poison. Glucose set off bitter receptors in cockroach taste
buds, causing them to avoid foods that bring on this taste bud reaction. This aversion eventually spreads to
offspring, resulting in increasingly large groups of cockroaches that reject glucose and any baits made with it.
The tests showed the unexpected electrophysiological reactions that glucose stimulates both sugar and bitter
receptor neurons, confirming behavioural tests that showed cockroaches quickly fleeing from glucose when
presented with it.
28 Hospitals resort to technology and other innovative ways to compel staff to
hands
May wash
Hand Hygiene Among Hospital Workers
Hospitals are using various methods to promote a basic tenet of infection prevention, hand-washing or handhygiene. With hospital-acquired infections costing $30 billion and leading to 100,000 patient deaths a year,
hospitals are willing to reduce risk of infection by all means. Without encouragement, hospital workers wash
their hands as little as 30 percent of the time that they interact with patients. So, workers are resorting to
monitoring via video, training hand-washing coaches, interactive badges, handing out rewards like free pizza
and admonishing with ‘red coupons’ as in a soccer match. Hospitals are using Radio-frequency ID chips that
note when a doctor has passed by a sink and undercover monitors to watch whether their colleagues are
watching their hands for the requisite 15 seconds. All this effort is to coax workers into using more soap and
water, or alcohol-based sanitizers like Purell. The incentive to do something is strong under new federal rules
which say that hospitals will lose Medicare money when patients get preventable infections.
Sports
23 Pakistani umpire Asad Rauf withdrawn from Champion’s Trophy
May Spot- Fixing
Pakistani Umpire, Asad Rauf, who has been on the ICC’s elite panel of umpires, has been withdrawn from the
Champion’s trophy to be held in England in June, after media reports said that the umpire is being investigated
upon by police in India following a recent spot-fixing scandal. Rauf was one of the umpires in the controversial
Indian Premier League match that saw Rajasthan Royals players S Sreesanth, Ajit Chandila and Ankeet Chavan
arrested for alleged spot-fixing.
GKCA Update
1st to 31st May
26 Government to put in place anti-fixing law by August
Law
May Anti-Fixing
The government has said that it will put in place an anti-fixing law by August to tackle match fixing and spot
fixing but ruled out promulgation of an ordinance on it. The government will hold discussions with all political
parties and other stake holders to ensure smooth passage of the Bill in parliament.
World
02 Former Pakistani President Pervez Musharraf arrested over killing of Baloch
leader
May Pervez Musharraf Arrest
Pakistani police on Thursday arrested and interrogated former president Pervez Musharraf, over the killing of
Baloch leader Akbar Bugti in a 2006 military operation. Musharraf was the army chief when the operation
against Bugti was ordered and a Balochistan court had issued a warrant for his arrest in 2011. Since his return
to Pakistan in March, Musharraf has also been arrested for detaining more than 60 judges during the 2007
emergency and over the assassination of former Prime Minister Benazir Bhutto.
03 Prosecutor investigating Benazir Bhutto murder case shot dead
May Pakistan
Chaudhry Zulfiqar Ali, the top prosecutor investigating the murder of Pakistan's ex-Prime Minister Benazir
Bhutto and the 2008 Mumbai attacks, died in hospital after being shot dead by unidentified gunmen as he was
driving from his Islamabad home to a court hearing in the Bhutto case in Rawalpindi. Police have not
speculated on a reason for the shooting.
06 Radical Islamists clash with authorities in Dhaka, 15 people dead
May Bangladesh
Radical Islamists of the Jamaat-e-Islami and its student wing, thousands of members of the Hefazat-e-Islam
threw Molotov cocktails and set on fire and looted banks and offices and also burnt down scores of vehicles,
including those belonging to police and paramilitary forces on 5th May in Dhaka, Bangladesh. BNP chief and
former Premier Khaleda Zia, also lent support to the radicals asking her supporters to rally around the radicals.
In a decisive drive, the joint forces of police, paramilitary Bangladesh Border Guard (BGB) and the elite Rapid
Action Battalion (RAB) closed in on the thousands of Hefajat activists and drove them out of Dhaka. Hefajat
had placed a list of demands including curbs on women’s rights, including free mixing between men and
women in public, abolition of the national women development policy and enactment of anti-blasphemy law,
which the Sheikh Hasina government refused to accept.
13 Global retailers agree on safety plan for Bangladesh factories
Garment Industry
May Bangladesh
Several of the world’s largest apparel companies have agreed to a plan to help pay for fire safety and building
improvements after Rana Plaza factory complex which housed international garment companies collapsed and
led to the death of more than 1,100 people, mostly workers. The plan is endorsed by H & M, the largest
purchaser of garments from Bangladesh and Inditex, owner of the popular Zara chain. Dutch retailer C & A and
GKCA Update
1st to 31st May
British retailers Primark and Tesco have also joined the agreement. Bangladesh has the worst practices in the
global garment industry and international trade unions and workers alike have welcomed the agreement. PVH,
the parent company of Calvin Klein, Tommy Hilfiger and Izod, announced it would sign the deal, and also
contribute $2.5 million to underwrite factory safety improvements. Meanwhile, Bangladesh’s cabinet
approved changes in labor laws as part of efforts to comply with international labour standards and improve
on-the-job conditions.
16 Bangladesh building collapse accident prompts global textile industry to
search for new locations
May Textile Industry
The Rana Plaza collapse in Bangladesh, considered the deadliest industrial accident in the global garment
industry, that left 1127 people dead, has prompted major players in the global garment industry to shun
Bangladesh and search for other locations. Western executives of top textile and retail companies are visiting
Cambodia, Indonesia and Vietnam to search for potential new suppliers. Along with the recent factory
collapse, a lethal factory fire in Bangladesh last November, 33 regional or national strikes there since January,
hundreds of deaths in factional street fighting there since February, have left multinational corporations
scrambling for other options. Yet safety problems could exist anywhere and many social activists feel that
shifting focus to other countries was an excuse to avoid improving safety standards in Bangladesh.
Garment manufacturing makes up a fifth of the economy in Bangladesh and four-fifths of its exports and
Bangladesh is desperately dependent on continued export orders to stop soaring unemployment and possibly
further political unrest.
18 Immigrants staying in America face risks of heart disease, high blood
pressure and diabetes
May Health
Immigrants living in America, since a long time, face high rates of heart disease, high blood pressure and
diabetes and their American-born children tend to live shorter lives than their parents. Still, the foreign-born
Hispanics, America’s largest immigration group live about 3 years longer than their American born
counterparts. Gradual adoption of American lifestyle - fast food, smoking and drinking leads to a variety of
diseases and reduces their life span. With fast-food being available easily, Children lose their taste for
traditional Mexican healthy food such as cactus and beans. 15-20 years ago, as disposable earning increased,
fast-food fare along with its taste, was also a sign of success, a family treat that new earnings put in reach.
Today, fast-food has become a necessity to match America’s frantic work pace. Food habits advised by doctors,
which consists of more fiber and less meat, were exactly the lifestyle habits that immigrants were normally
keeping. That is why immigrants who have less education and lower income, factors usually associated with
worse health, tend to live longer than their American counterparts.
23 Soldier hacked to death and beheaded in London
May Soldier Beheading
A serving soldier was hacked to death in broad daylight, in Woolwich, south-east London, by two armed men
who asked shocked passers-by to take their photographs as they beheaded their victim with a machete-style
knife. Eye witness accounts said that the attackers chanted Allahu Akbar as they beheaded the soldier and one
of them was seen on the witnesses’ video making political statements and warning of more violence. The two
accused, Michael Adebolajo, 28, and Michael Adebowale, 22, were shot and captured by the police. Adebolajo
had been previously arrested in Kenya in 2010 with five others near the country’s border with Somalia. Police
GKCA Update
1st to 31st May
believed Adebolajo was going to work with al-Shabab, which is the Somali-based cell of the militant Islamist
group al-Qaeda.
24 Obama defends drone strikes as an act of self defence against terrorists
May US Drone Strikes
US President Barack Obama has defended drone attacks as a just war of self defence against militants and as a
campaign that has made America safer. He also defended the drone strikes on four US citizens saying that
America was at war with an organization which could kill as many American citizens if America didn’t strike
first. The US administration said that drone strikes were sanctioned only after taking into consideration that
capture wouldn’t be feasible and civilians wouldn’t be hurt. He also mentioned his long-standing commitment
to close the detention centre at the US base in Guantanamo Bay, Cuba.
GKCA Update
1 to 30th June
st
Starred Articles
01 Narayana Murthy returns as Infosys executive chairman
Jun Corporate > Infosys
The Infosys board has announced that it is bringing back N R Narayana Murthy as the executive chairman with
effect from June 1. The decision comes at a time when Infosys has a revenue growth far below that of peers
TCS, Cognizant and HCL. Murthy had founded the company and retired in 2011. Murthy’s team will include his
son Rohan Murthy as executive assistant. K V Kamath, who was appointed non-executive chairman on
Murthy's retirement in 2011, will step down from his position and take up the position of lead independent
director. The Board said that the decision was taken keeping in mind the requests from shareholders to
strengthen the executive leadership and Murthy’s vast experience and entrepreneurial abilities would enable
him to lead the company and provide strategic direction.
02 FDI inflows dip by 38% to $22.4 billion in 2012-13
Jun Economy > FDI
Government initiatives to promote India as an investment destination seem to have failed as FDI inflows
registered 38 per cent decline to $22.42 billion in 2012-13 compared to the previous year. FDI inflows were
worth $35.12 billion in 2011-12. The government had taken several policy decisions such as allowing FDI in
multi-brand retail and civil aviation sectors and seeking legislative approval for increasing FDI cap in insurance
and pension sectors to attract foreign investment. Decline in foreign investments could put pressure on the
country's balance of payments and may also impact the value of the rupee.
Government likely to curb gold imports to check widening of Current
03
Account Deficit
Jun Economy > Gold Imports
The government is likely to take more steps to curb rising imports of Gold, which may include a ban on sale of
gold coins by banks, after various other steps taken by the RBI and the government to bring down the CAD
failed to yield results. Remarkable rise in Gold imports, which stood at 162 tonnes in May alone, have caused
the CAD to widen to alarming proportions. Last month, the RBI had imposed curbs on gold import by banks
and also imposed restrictions on them and non-banking finance companies (NBFCs) to check loans against gold
coins as well as units of gold ETFs (exchange traded funds).
03 Violent anti-government protests break out in Turkey
Jun World > Turkey
Major protests broke out all over Turkey and thousands of protestors took to the streets against Prime
Minister Recep Tayyip Erdogan, who after 10 years in office, is seen as an uncompromising figure with undue
influence in every sphere of Turkish life and labeled a dictator. Around 10,000 people protested in Taksim
Square in Istanbul, calling on Mr. Erdogan’s government to resign and around7000 people protested in capital
Ankara, where the protests turned violent with protestors throwing fire bombs and police firing tear gas. More
than 1750 protestors have been detained. Mr. Erdogan called the protests ideological, an extremist ‘fringe’
and manipulated by an opposition that was unable to secure victory at the elections.
GKCA Update
1 to 30th June
st
06 RIL to invest Rs 1.5 lakh crore over three years
Jun Corporate > RIL
Reliance Industries on Thursday announced an investment of Rs 1.5 lakh crore in core business of
petrochemicals and oil and gas as well as in retail and telecom sectors in the next 3 years. The investments
span oil and gas exploration and production, refining and marketing, petrochemicals, retail and broadband and
digital services. RIL's retail business has crossed Rs. 10,000 crore and has achieved break-even.
07 Foreign Retailers not allowed franchisee route in multi-brand retailing
Jun India > FDI
The Department of Industrial Policy and Promotion (DIPP) has said that foreign retailers will not be allowed to
franchise their stores, and will have to put 50 per cent of their investments in back-end infrastructure
specifically for the chain they are setting up. Investments in multiple infrastructure companies would not be
counted as investing 50 per cent in the back-end infrastructure. The front-end retail stores must also be set up
as an additionality, and not through acquisition of existing stores and investment in the equity of the existing
infrastructure company will not be treated towards the fulfillment of the conditionality of 50 percent
investment in back-end infrastructure. The mandatory 30 per cent sourcing from small industries will be
counted only for sales through the front-end stores and the sourcing condition pertains only to manufactured
and processed products.
10 Rupee hits all-time low of 58.98
Jun Economy > Rupee
The rupee fell to an all-time low of 58.98 per dollar intra-day on Tuesday, 11th June, at the foreign exchange
market. However, dollar selling by public sector banks and exporters prevented the Indian currency from
dipping below the 59 per dollar mark. Concerns related to widening trade and Current Account Deficit have led
to a sharp fall in the rupee. India’s heavy dependence on fickle Foreign Institutional Investments (FIIs), to
bridge the wide Current Account Deficit (CAD) has made it vulnerable to such potential developments.
11 BJP appoints Narendra Modi chairman of National Election Campaign
Advani quits but later takes back resignation
Jun Committee,
Politics and Government > BJP
The BJP has appointed Gujarat Chief Minister Narendra Modi as chairman of the National Election Campaign
Committee, enforcing the belief that the party leadership and workers consider Modi as the best person to
take on the UPA in the 2014 elections. In the evening following Modi’s appointment, senior BJP leader L K
Advani, quit from all party posts which hinted at his displeasure over Modi’s elevation as the campaign leader
for the 2014 Parliamentary elections. Following a two-day crisis, Advani agreed to take back his resignation
after RSS chief Mohan Bhagwat spoke to him and assured him that all his concerns regarding functioning of the
party, would be properly addressed.
However, the BJP top brass unanimously agreed that there was no question of revoking Modi’s appointment.
12 USA’s secret surveillance programme revealed, global phone and internet
of millions compromised
Jun records
World > US Secret Surveillance
Secret documents about an US government secret surveillance programme called ‘Prism’ has been leaked,
which reveal that the US National Security Agency and the FBI had been secretly obtaining the call records of
GKCA Update
1 to 30th June
st
millions around the world and tapping directly into the central servers of nine leading US Internet companies,
including Apple, Facebook, Microsoft Corp and Google Inc., to extract massive amounts of data including
audio, video, photographs, emails, documents and connection logs. The US government has defended ‘Prism’
as an “internal government computer system” designed to sort through court-supervised collection of data,
and that Congress has been briefed 13 times on the programs since 2009. The hearings of the Foreign
Intelligence Surveillance Court (FISA) are closed to the public, and, while records of the proceedings are kept,
those records are also not available to the public. However, it is interesting to note that a poll showed a
majority of Americans (56%) saying they can live with the National Security Agency (NSA) phone-tracking
program to investigate terrorism.
Google, Microsoft, Yahoo and Facebook have denied the allegations that the government has direct access to
their servers or data, saying that they only comply with orders for requests about specific accounts or
identifiers. Google, Facebook and Microsoft have asked the government for permission to reveal details about
the classified requests they receive for the personal information of foreign users.
Edward Snowden, an US national security contractor, was the whistle blower behind the secret surveillance
programme. The US administration has registered a case against Snowden and he’ll potentially face a criminal
sentence. Snowden had been hiding in Hong Kong, when he leaked the secrets. Russia has stepped up to offer
asylum to Snowden although Snowden has till now not made any such requests.
The entire surveillance programme might put the US in the face of a debate, since the US itself opposes similar
programmes and had accused the Chinese military of cyber attacks on American corporations and citizens, a
few months back.
16 Leaked documents show Britain and US tracked diplomats at world
Jun conferences
Politics and Government > Secret Surveillance
Barely a week after the US secret surveillance programme was leaked by Snowden, the Guardian newspaper
has disclosed a new set of classified documents that reveal that American and British intelligence agencies had
eavesdropped on world leaders at conferences in London in 2009,including that of Dmitri A. Medvedev, then
the Russian president and now the prime minister. The agencies monitored the e-mail and phones of other
countries’ representatives at two London conferences, in part by setting up a monitored Internet cafe for the
participants. The revelations came before a meeting of the G8 Summit was to open in Northern Ireland, where
some of the leaders who were intelligence targets four years ago will be in attendance.
16 Unemployment rate increases in China as economic growth falters
Jun Economy > China
China’s faltering economic growth has resulted in a weak job market as a record seven million students are set
to graduate from universities and colleges across China in the coming weeks, but their job prospects appear
bleak. Companies are flooded with job applications but there are very few posts to offer. The Chinese
government has ordered schools, government agencies and state-owned enterprises to hire more jobless but
educated youths temporarily to help relieve joblessness. There is a huge demand for blue-collar jobs as
compared to white-collar jobs and while the wages for blue-collar jobs have increased manifold, for the whitecollar workers, it has barely stayed steady or even declined. Although the Chinese economy has grown at a
much faster pace than in the West, China’s main problem lies in the sheer growth in graduates every year. All
these graduates are reluctant to join small private companies or set up new companies which have further
contributed to unemployment.
GKCA Update
1 to 30th June
st
16 Hassan Rowhani wins Iran’s Presidential elections
Jun World > Iran
Moderate cleric Hassan Rowhani has achieved a landslide victory in Iran’s Presidential elections, winning more
than 50 percent of the vote beating five hard-liners. His victory has come as a surprise to the outside world and
people all over Iran have erupted in celebrations. Though Rowhani cannot be categorized as a reformer, he can
certainly be called a moderate conservative. Rowhani’s first priority would be to resolve the differences
between the leadership and Iran’s citizens, strengthen Iran’s failing economy and ease international sanctions.
Rowhani’s pragmatic approach is seen in the way he handled student protests, the aftermath of devastating
earthquakes, or in his stint as nuclear negotiator, working to ease international pressure as Iran moved
forward with its nuclear programme. Rowhani wants to renew talks with the West over the nuclear program,
which had failed under President Ahmadinejad. Another challenge for Rowhani would be to resolve issues such
as relations with the neighbouring Gulf countries and Iran’s involvement in the Syria crisis. Rowhani’s election
would likely mark important changes in Iran and could soften its stand on regional issues. But it all depends on
how much the president-elect will be able to disengage himself from the powerful control of the Supreme
Leader Ayatollah Khomeini and follow his own policy.
16 JD (U) ends ties with BJP; post split regional parties moot for third front idea
Jun Politics and Government > BJP-JD (U) Split
The 17-year old alliance between the JD (U) and the BJP under the banner of the National Democratic Alliance
ended on June 16th, with JD (U) announcing to break ties. The split happened after Narendra Modi’s
appointment as BJP’s election campaign chief and his probable selection as the NDA’s prime ministerial
candidate angered the JD (U). Chief Minister Nitish Kumar called on Governor DY Patil and recommended
removal of 11 BJP ministers including deputy CM Sushil Kumar Modi, while JD (U) president Sharad Yadav
announced his resignation as convener of the NDA.
Post split, regional parties are looking at the possibility of establishing a third front. Trinamool leader and West
Bengal CM Mamata Banerjee had broached the idea to Nitish Kumar and Biju Janata Dal chief Naveen Patnaik,
and the effort has met with the approval of Telugu Desam Party president Chandrababu Naidu and even UP
chief minister Akhilesh Yadav, a Samajwadi Party leader. However, the major obstacle to a third front lies in
the divergent political views of the parties involved on every national issue as well as the the egos of the
personalities mooting for the front.
18 Ratan Tata to be chief advisor to Air Asia India, former TCS chief Ramadorai
Chairman
Jun named
Corporate > Air Asia India
Ratan Tata, chairman emeritus of Tata Sons, will be the chief advisor to AirAsia India, a new venture that
Malaysian airline is setting up with the Tatas as investors. Tony Fernandes, founder and chief executive officer
of AirAsia, has said that it has been tough to persuade Tata to take up the post of chief advisor and his massive
experience would help Air Asia India plan a successful run.
Former TCS chief S. Ramadorai has been named the Chairman of the airline. Previously, AirAsia India had
announced the name of its new CEO Mittu Chandilya.
GKCA Update
1 to 30th June
st
19 China builds world’s fastest supercomputer
Jun Science and Technology > Super Computer
China has built the world's fastest supercomputer, which is almost twice the speed of the previous recordholder from the US. The Tianhe-2, which means Milky Way – 2, has been developed by the National University
of Defence Technology in central China's Changsha city and is capable of 33,860 trillion calculations per
second. The news was revealed in the semi-annual TOP500 listing of the world's fastest supercomputers and it
underlines China’s rise as a science and technology powerhouse.
24 Devastating floods break out in Uttarakhand, more than 1000 dead
Jun India > Uttarakhand Floods
A massive cloudburst and heavy rainfall from 14th -17th June near the revered Kedarnath shrine in
Uttarakhand triggered large flash floods and massive landslides that ravaged the hills of Uttarakhand and
caused heavy destruction to life and property. The number of casualties was more than 1000 as thousands of
devotees visited Gangotri, Yamunotri, Kedarnath and Badrinath, the hallowed Hindu Chardham (four sites)
pilgrimage centers. Entire villages and settlements such as Gaurikund and the market town of Ram Bada, a
transition point to Kedarnath, have been obliterated, while the market town of Sonprayag suffered heavy
damage and loss of lives. With vast stretches of mountain roads and bridges cut off, around 70000 pilgrims and
tourists and thousands of locals were stranded in the hills.
Flooding of the Dhauliganga and the Mahakali rivers in Nepal also caused extensive damage to life and
property. Locals in Nepal blamed the floods on the rapid release of water from the Dhauliganga Dam, located
on the Indian side. India refuted the claim and attributed the flooding to heavy rainfall on the river catchment
area.
Rescue operations:
The IAF has airlifted a total of 10,731 persons till now and around 6500 people are still left stranded in relief
camps and waiting to be rescued. . The Army, Air Force, Navy, Indo-Tibetan Border Police, Border Security
Force, National Disaster Response Force, Public Works Department, local administrations and several NGOs
worked together for quick rescue operations. Food, water and medical supplies have been made available
through air drops to meet basic needs.
Financial aid:
Prime Minister, Dr. Manmohan Singh, has announced a Rs. 1000 crore aid package for disaster relief efforts in
the state. Several state governments have announced financial assistance and United States government has
announced financial aid of USD 1, 50,000 to the NGOs working in the area.
Present situation:
Heavy rains continued to trouble rescue missions. Uttarakhand's Chief Minister Vijay Bahuguna said that the
floods had set back the state by at least three years in terms of development and there is an initial estimated
loss of Rs. 3000 crore. Rs. 5 crore in proceedings from the Kedarnath temple deposited with the State Bank of
India, Kedarnath branch, was washed away in the floods. The police have recovered Rs. 83 lakh from a man,
which they believe is part of the 5 crore. There were reports of rings being stolen after cutting the fingers of
the victims. Government agencies and priests of Kedarnath temple are planning mass cremation of the
hundreds of victims, who are identified or unclaimed till now as the decomposed bodies might spark off an
epidemic.
GKCA Update
1 to 30th June
st
25 Snowden charged with theft of government property, Russia refuses to
arrest or extradite whistleblower
Jun World > US Secret Surveillance Leaks
Edward J. Snowden, the former US National Security Agency contractor who had leaked classified documents
about an US secret surveillance programme, has been charged with violating the Espionage Act and stealing
government property for disclosing classified information. The charges against Snowden carry a maximum
prison sentence of 10 years, for a total of 30 years.
Snowden was believed to be hiding in Hong Kong when he leaked the documents. The American authorities
had asked Hong Kong to detain Snowden till the time an indictment and an extradition request are prepared.
However, China refused to arrest Snowden and allowed him to fly to Russia. Snowden has been at the transit
lounge of a Moscow airport for the past two days. Russian authorities have lashed back at US criticism for
sheltering Snowden saying that Snowden had not crossed the Russian border. Russia also said that Snowden is
a free man and Russia had no reason to apprehend or extradite him.
25 Protests break out in Brazil, with 8, 00,000 in streets
Jun World > Brazil Protests
Protests:
Anger over a hike in public transport fares sparked off protests in Brazil which gradually gathered steam as a
protest movement over the quality of public services and the high cost of staging the World Cup at the
expense of basic needs. It became the biggest street protests in Brazil since the last 20 years, as 8, 00,000
people rallied across the country. Police fired tear gas and rubber bullets in Rio de Janeiro and Brasilia, to
break the protestors. Although the controversial transit fare hikes were cancelled, it failed to placate the
demonstrators. Protesters rallied against the rampant corruption within the political class and demanded
higher funding for education and health and a cut in salaries of public officials.
Reforms proposed:
Brazil President Dilma Rousseff proposed a referendum of political reforms focusing on five broad areas: Fiscal
responsibility, investing 100% of Brazil's oil royalties in education, improvement in the health sector,
establishing an assembly to eventually amend Brazil's constitution and improving the state of public transport
and lowering costs.
Hatred against soccer:
Brazil, a five time world-cup winner, where soccer reflects unparalled pride and common bond, has become an
object of hate. A growing number of protesters are telling fans around the globe to boycott the 2014 World
Cup in Brazil. Some of the nation’s most revered heroes have become targets of rage. Protesters criticized
former soccer greats Pele and Ronaldo after Pele called on Brazilians to “forget the protests” and a video
showed Ronaldo commenting that World Cups are accomplished “with stadiums, not hospitals.” The
protestors have asserted that the protests have no political connection and are entirely a social movement of
the common Brazilians. As in all recent protests throughout the world, social media has played a key role in
spreading word about the protests and calling people to join.
GKCA Update
1 to 30th June
st
26 Government bans analgin and two popular diabetes and anti-depressant
Jun drugs
India > Medicine
The government has banned three popular medicines, the widely prescribed anti-diabetes drug
pioglitazone, painkiller analgin and anti-depressant deanxit in the wake of health risks associated with them.
Pioglitazone can cause heart failure and increase the risk of bladder cancer, analgin has been discarded the
world over on grounds of patient safety. Deanxit, on the other hand is a harmful combination, which has been
long banned even in Denmark, its country of origin. The decision follows a strong stand by the government to
suspend marketing of all drugs prohibited for sale in other countries like the US, the UK, EU and Australia.
26 Rupee hits all-time low of 60, Gold, silver prices fall
Jun Economy > Rupee
The rupee fell to an all-time low of 60.73 on 26th June in the foreign exchange market as the RBI failed to
defend the rupee at the 55.98 level through intermittent dollar sales. The fall was triggered by month-end
demand for dollars. Besides making all imports expensive, a weak rupee will severely hurt those planning to
travel or study abroad.
Gold prices slumped to a one-month low of Rs. 26, 145 per 10 kg on 26th June, on the back of a steep fall in
global prices while silver dropped to a three-year low, at $18.63 an ounce after reports that the US was
withdrawing its stimulus programme.
26 New solar system found with 3 habitable planets
Jun Science and Technology > New Solar System
Astronomers from the University of Gottingen have identified a new solar system having five to seven planets
revolving the star Gliese 667C. A record-breaking three of these planets are super-Earths found in the so-called
habitable zone around the star, the zone where liquid water could exist. This makes them good candidates for
the search for life. Gliese 667C is a very well-studied star. It is just over one third of the mass of our Sun, and is
part of a triple star system known as Gliese 667. Gliese 667 is remarkably similar to our solar system,
compared to other stars studied in the search for habitable planets.
29 Mahindra Satyam suspends trading following merger with Tech Mahindra
> Mahindra-Satyam Merger
Jun Corporate
Mahindra Satyam (Satyam Computer Services) will be suspended from trading with effect from July 4, 2013,
following its merger with Tech Mahindra. On 25th June,Tech Mahindra had formally announced the
completion of Mahindra Satyam’s merger with itself. The merged entity is called Tech Mahindra now with
Anand Mahindra as its chairman. Post-merger, the new entity has become the fifth largest IT company in the
country with revenues of $2.7 billion.
GKCA Update
1 to 30th June
st
Corporate
03 Windows phone captures third place in the US market after Android and
Apple
Jun Smartphone Sales
Windows seemed to have gained from the rivalry between Android and Apple smartphones that has cut into
the overall market share, as Windows powered smartphones captured the third spot in the US market in early
2013, after Android and Apple. Microsoft's Windows, boosted by the Windows Phone 8 introduced last year,
boosted its share to 5.6 per cent from 3.8 per cent. Android, the free operating system from Google, remained
the top platform with 51.7 per cent of US sales in the three months to April, up from 50.3 per cent a year
earlier; whereas Apple's iOS was second with 41.4 per cent, up from 39.1 per cent a year earlier. BlackBerry,
had a minuscule 0.7 per cent of US sales compared with 5.3 per cent a year ago.
20 Ranbaxy, 8 other companies fined Rs. 1,000 crore
Jun Ranbaxy
EU antitrust regulators have imposed fines totalling 146 million euros (Rs 1,150crore) on nine
global drugmakers, includingRanbaxy, for blocking the supply of cheaper versions of Danish
company Lundbeck's antidepressant drug citalopram. Ranbaxy needs to pay a penalty of 10.3
million euros (aroundRs 80 crore). In 2002, Lundbeck had entered into agreements with each of these
companies to delay the entry of cheaper generic versions of its famous drug Citalopram. Lundbeck has to pay
damages of 94 million euros while the others fined include Alpharma, Merck KGaA/Generics UK and Arrow.
Punishments follow a European Commission report which says that "pay-for-delay" deals lead to consumers
paying as much as 20% more for their medicines.
Economy
06 Trading agencies to reduce Gold imports, restrictions in imports may
increase gold smuggling
Jun Gold
India's gold imports could drop by up to 10% to around 880 tonnes this fiscal, following restrictions on gold
purchases imposed by the Reserve Bank of India (RBI). The RBI restrictions came after the Current Account
Deficit (CAD) widened to alarming proportions following 162 tonnes of gold imports in May. The government
has raised the import duty on gold and the RBI has asked banks, nominated agencies and star trading houses
not to import gold on a consignment basis for domestic sales. RBI has also insisted that imports will be on
'documents against payments' as against the earlier norm of 'documents against acceptance'.
Jewellers and bullion traders said that nearly 200 -250 tonnes of gold may be smuggled into India this year
following the Reserve Bank of India's moves to check Gold’s shipments. The import duty, the value-added tax
and premiums for spot delivery were very likely to lead to a rise in smuggling.
GKCA Update
1 to 30th June
st
11 Greece shuts state-run television and radio broadcaster to cut public
Jun employment
Greece
The Greece government has closed down its state-run television and radio broadcaster, idling 2,900 people,
less than 1 percent of the public work force. The move came just days after one of Greece’s lenders, the
International Monetary Fund ,while acknowledging “serious errors” in the austerity policies it has imposed on
the country, chastised the government as having failed to take “politically difficult measures” to shrink the
public sector since it received its first bailout in 2010. Greece has promised its creditors this week to dismiss
4,000 civil servants this year, including 2,000 by the end of the summer and 15,000 by the end of 2014. Greece,
along with Spain, Portugal and other bankrupt countries, are under increased pressure to revitalize the
government by cutting older, low-skilled workers and bringing in younger workers with advanced degrees and
computer skills, who would improve efficiency from policy making to tax collection and set Greece on the path
to recovery.
21 Putin proposes loans upto $ 43.5 billion from pension reserves to accelerate
growth
Jun economic
Russian Economic Stimulus Programme
Faced with meager growth and decline of Russia’s oil and gas reserves, President Vladimir Putin has
announced a risky economic stimulus programme and an amnesty plan for imprisoned white collar criminals to
boost investor confidence. Russia would distribute at least $14 billion from the pension reserves as loans to
modernize the storied Trans-Siberian Railway, to construct a 500-mile high-speed rail line between Moscow
and Kazan, and to build a superhighway ringing Moscow. The amnesty plan intends to release about 13,000
businessmen caught for economic crimes and is intended to signal easing police pressure on private
entrepreneurs. But experts say that with nearly full employment, new government spending is more likely to
cause wage inflation than to create new jobs. Instead, the government should reduce its dependence on oil
and gas and create new industries, review manufacturing and attract foreign capital.
21 US Federal Reserve to reduce post 2008 financial stimulus to economy
Jun Wall Street
The US Federal Reserve clearly laid out the steps it would take to reduce the extraordinary stimulus it has
injected into the US financial system and economy since the financial crisis of 2008. It assured that it would
withdraw support only when the economy becomes strong enough. However, the assurance failed to pacify
investors and the benchmark Standard & Poor’s 500-stock index dropped 2.5 percent, its steepest one-day
decline since November 2011, and ended the week down 2.1 percent. The challenge for Wall Street, as of now,
would be to stand on its own without Federal intervention, at a time when the world economy is facing
uncertainty about tightening credit in China and continuing debt woes in Europe. If stocks prices recover now
and keep increasing without Federal support, it would increase investor confidence in the market.
India
07 NHAI makes 24x7 ambulance service on national highways mandatory
Jun Highway Safety
National Highways Authority of India (NHAI) has mandated that developers and government agencies
managing and maintaining National Highways (NHs) will have to ensure that ambulances and patrolling
vehicles are available 24x7.The NHAI has decided to install vehicle tracking system (VTS) in all such vehicles
GKCA Update
1 to 30th June
st
with global positioning system (GPS) within a month to monitor their uninterrupted movement. As per rules,
every developer needs to deploy one ambulance and one patrolling vehicle for every 50 km stretch. At
present, the deployment is inadequate and only a small portion of the 80,000 km NH stretch has such a facility.
18 Defence ministry rejects fresh proposal for a permanent chairman of the
of staff committee
Jun chiefs
Defence
The Ministry of Defence (MOD) has expressed major reservations against the fresh proposal for a permanent
Chairman of the chiefs of Staff Committee (CoSC).The government had rejected such a proposal after the 1999
Kargil conflict. A permanent CoSC chairman would exercise "administrative control" over the nuclear arsenal,
head a separate joint special forces command, prioritize modernization of the armed forces and prepare
annual defence operational status reports. The MOD said that the current system of the three Service chiefs
and the collegiate CoSC briefing the defence minister was functioning well and the creation of a permanent
CoSC was not possible because of a lack of political consensus, as also lack of complete agreement among the
three Services, the Army, the Navy and the Airforce.
Others
04 Actress Jiah Khan commits suicide
Jun Jiah Khan
Jiah Khan, of ‘Nishabd’ fame, has committed suicide. She was found hanging at her flat in Sagar Sangeet
Building in the posh Juhu area of northwest Mumbai around midnight on June 7th. Jiah, who was dating
bollywood actor Aditya Pancholi's son Sooraj Pancholi, was under depression after coming to know of Suraj's
new love interest, who supplied jewellery to the Pancholis. Sooraj has been arrested for abetment of suicide
on the basis of Jiah’s mother’s statement and a six-page letter found in her flat three days after her death.
Even in the fresh letters recovered, Jiah had accused Sooraj of physical abuse, rape, threats, cheating and
abortion of a baby. Sooraj has accepted that he had beaten up Jiah, and they were in a live-in relationship.
12 World's oldest person dies in Japan at age 116
Jun World’s Oldest Person
Japan’s Jiroemon Kimura, who had been recognized by Guinness World Records as the world’s oldest living
person and the oldest man ever, died Wednesday of natural causes. He was 116. Kimura of Kyotango, Japan,
was born April 19, 1897.Hhe had been undergoing treatment for pneumonia. The title of oldest living person is
now held by another Japanese, 115-year-old Misao Okawa, of Osaka. Okawa was born March 5, 1898.
17 RAW founder B Raman dies
Jun RAW Founder
One of India's foremost security experts and one of the founders of India's external intelligence wing, the
Research and Analysis Wing (RAW), Bahukutumbi Raman passed away in Chennai at the age of 77.He was
suffering from cancer. Raman was a former additional secretary with the Cabinet secretariat. He was also the
director of the Institute for Topical Studies, Chennai. An author of several books, Raman used to write on
security, counter-terrorism and military issues of India and South Asia.
GKCA Update
1 to 30th June
st
20 Dolce and Gabbana sentenced to jail for tax evasion
Jun Dolce and Gabbana
Celebrated fashion house duo Domenico Dolce and Stefano Gabbana have been sentenced to one year and
eight months in prison for avoiding taxes totalling 200 million euros ($268 million). The pair were also ordered
by the court in Milan to pay a fine of 500,000 euros ($670,000) to Italy's national tax agency.
Politics & Government
05 Fear of economic breakdown looms large as continued political unrest
shakes Turkey
Jun Turkey Unrest
The Turkish stock market has fallen 9 percent in the past week, interest rates have risen and the currency, Lira
has fallen 8 percent in the recent months and just 1 percent just since the protests began. Turkey which has
achieved enviable economic success, because of the huge amounts of short term loans from foreign investors,
could fall into a currency crisis and, eventually, a collapse in the property markets that could threaten the
nation’s banks, if investors leave the country in search of a safe haven because of the recent political turmoil.
Turkey’s two previous financial implosions, in 1993 and 2001, were largely currency disasters, set off by fleeing
investors and lenders. This year Turkey’s private sector will require $221 billion, about 25 percent of Turkey’s
G.D.P, in outside financing alone, with most of it coming in short-term loans. Moreover, in preparation for the
100th anniversary of the founding of the Turkish republic in 1923, Mr. Erdogan’s government has unveiled a
$400 billion public works program, which is more than half the size of the $770 billion Turkish economy. On
top of a slew of equally large projects in high-speed rail, subways, ports and other amenities, Turkey is also a
leading contender to secure the 2020 Olympic Games and if Turkey wins, the lending and borrowing will only
speed up.
06 Hunger strike continues at the US military prison in Guantanamo bay
Jun Guantanamo Bay Prison
A hunger strike started by a handful of prisoners at the US military prison at Guantanamo Bay, has now
become a mass protest with 103 out of the 166 detainees still held there taking part. The protest began in
February and has been growing for almost four months. Lawyers representing detainees say it was sparked by
tougher prison searches, which according to the US military, uncovered various contraband items, including
homemade weapons that have been used to attack prison guards. The detainees' lawyers claim that during
those searches the Koran was mishandled which the US military strongly deny. The US military's cultural
adviser, who liaises with the prisoners, says it is a familiar tactic to attract the attention of the outside world.
Journalists who visit Guantanamo are still not allowed to identify or talk to the detainees. Though the US army
now applies the Geneva Conventions at Guantanamo, shackles used to restrain detainees are still there. They
are however referred to as "humane restraints" whereas force-feeding is called "enteral feeding". President
Obama’s renewed pledge to close down the prison facility might have raised hopes of the prisoners, but how
he’ll achieve it or how the hunger strike will end is still a matter of question. The hunger strike has been called
an asymmetric war and prison officials say that many detainees are dangerous and still in the fight for their
cause.
GKCA Update
1 to 30th June
st
16 Turkey cracks down violently on street protestors
Jun Turkey Protests
The Turkish government cracked down violently on the anti-government protestors, targeting not just the
demonstrators but also the medics who treat the injured protestors, the hotel owners who shelter them and
the foreign media coming to Turkey to cover the protests. At places, protests took a more dangerous turn as
anti-government protestors clashed with Erdogan’s civilian supporters. Erdogan also rallied thousands of his
supporters from all over Turkey andsaid that the protests were the results of a foreign plot, along with
financial speculators and terrorists, to overthrow his government.
The escalating protests could lead to a continued period of civil unrest that could undermine Turkey’s image as
a rising global power and a model of Islamic democracy.
Obama defends authorization of surveillance programme; technology
17 companies publish data of customer information requests from the
Jun government
US Secret Surveillance Programme
President Barack Obama defended his authorization of the recently revealed domestic and international
surveillance programme and said he had made important changes from the policies of George W. Bush;
including making sure that surveillance was approved by Congress and a secret foreign intelligence court. He
said these programmes have disrupted terrorist plots in the United States and overseas.
Facebook, Microsoft, Apple and Yahoo have released reports about the overall number of data requests they
had received from United States law enforcement agencies in a bid to reassure their users that the
government gets information on just a tiny number of people. However, it is not known that out of all the
requests received, how many of them were from investigators seeking out a terrorist link. The companies said
they were not allowed to say, although they noted that the requests were commonly related to things like
local police investigations and searches for missing children. Google and Twitter said they would not publish
similar data until they could separate national security requests from the rest.
18 Congress announces reshuffle of its working committee, UPA reshuffles
Cabinet with eye on 2014 Assembly elections
Jun UPA
The Congress has announced a new working committee with 12 general secretaries and 42 secretaries.
Congress vice president Rahul Gandhi will look after frontal organisations while senior party leader Digvijaya
Singh has been made general secretary of Andhra Pradesh, Karnataka and Goa. Ajay Maken, CP Joshi, Ambika
Soni, Shakeel Ahmed and Gurudas Kamat have been made new AICC general secretaries. Making largescale
changes in the organisation, Congress President Sonia Gandhi retained Ahmed Patel as her political secretary
but significantly made Ambika Soni as general secretary incharge of the Congress President’s Office (CPO).
Oscar Fernandes, Vilas Muttamwar, Ghulam Nabi Azad and Birender Singh were dropped as general
secretaries
Prime Minister Manmohan Singh inducted 8 new ministers taking the size of the cabinet to 77, as part of a
cabinet reshuffle to focus on the 2014 general elections. Rajasthan leader Girija Vyas replaced C P Joshi after
the latter got a party assignment. Vyas filled the Brahmin slot, while 85-year-old Jat leader Sisram Ola was
recalled to the Cabinet and given charge of the labour ministry, almost four years after he was last minister.
Gandhi loyalist Oscar Fernandes’ appointment as highways minister and Mallikarjun Kharge's shift to railways
from labour is viewed as a reward to the Karnataka contingent in the wake of Congress's return to power in
GKCA Update
1 to 30th June
st
the state. Unlike the changes in the Congress organization, the Cabinet inductions did not reflect a younger
profile.
19 Afghan government to shun US peace talks with Taliban
Jun Afghanistan
Afghan President Hamid Karzai said his government would not join U.S. peace talks with the Taliban in Doha,
the capital of Qatar, and would halt negotiations with Washington on a post-2014 troop pact. The Afghanistan
government was angered and accused the US government of violating assurances that it would not grant
official status to the Taliban insurgents, after the Taliban opened a political office in Doha. The Taliban office
was decorated with a banner referring to the Islamic Emirate of Afghanistan, the name the Taliban used during
their 1996-2001 rule of the country. Afghanistan also said that negotiations with the US would remain
suspended, until the US government clarifies its stand on the peace process.
26 Labour Party brings back former diplomat Kevin Rudd as Australia PM
replacing Julia Gillard
Jun Australia
Australia’s ruling Labour Party has elected former leader Kevin Rudd as PM replacing Julia Gillard in a move to
try and avoid a major defeat at elections due within three months. Rudd, a former diplomat, won a Labour
Party ballot with 57 votes to Gillard’s 45. The leadership change followed a series of opinion polls showing
Gillard’s minority government could lose upto 35 seats at the coming elections, giving the conservative
opposition a massive majority in the 150-member parliament. The polls also showed that Rudd is more popular
with voters and his return to the prime ministership, which he lost to Gillard in June 2010, could reduce the
Labour Party’s election loss.
Science and Technology
13 New cornea layer named after Indian
Body
Jun Human
Researchers from the University of Nottingham in the UK have found a previously undetected layer in the
cornea at the front of the human eye that could help surgeons to greatly improve outcomes for patients
undergoing corneal grafts and transplants. The new layer has been dubbed the Dua's Layer after the academic
Professor Harminder Dua who discovered it. Scientists previously believed the cornea to be composed of five
layers, from front to back, The new layer that has been discovered is located at the back of the cornea, and is
just 15 microns thick.
13 Google launches world’s first tablet café
Café
Jun Tablet
Google has launched the world’s first tablet cafe, replacing traditional PCs with tablet computers. Google had
offered funding last year and picked up one cyber cafe, Equinoxe cyber cafe, in Senegal, Africa into a pilot
tablet cafe. In Africa, frequent power cuts and exorbitant electricity bills are a major headache for cyber café
owners and their customers. While tablets have reduced dependence on cyber cafes in the developed world,
tablet cafes could succeed in Africa because most people cannot afford to buy the devices, and tablets use
batteries and mobile data connections which make them immune to power cuts. The Equinoxe now sports 15
tablets and has installed cabins for private video chats. The tablet café charges the same price as its
GKCA Update
1 to 30th June
st
predecessor and café owners can save on electricity bills and invest more into improving their connection
speeds.
16 Japanese Scientist develops body-double robot
Jun Robots
Japanese roboticist Hiroshi Ishiguro, director of the Intelligent Robotics Laboratory at Osaka University, Japan,
has developed a body-double robot which resembles him closely, with tiny human-like movements and
blinking eyes. The new ‘Geminoid’, an android resembling a real person was tele-operated i.e. controlled
remotely by a person offstage. Ishiguro has also developed another Geminoid, a fashionably dressed female
android, which he has shown off in the windows of clothing stores. Ishiguro has also taken his robots on the
road as part of a travelling “android theatre,” where they act out scenes with human-like expressions. The
roboticist also made the “Telenoid,” a pillow-like bot deliberately designed to appear ageless and genderless
so that people can project an imagined face onto its neutral appearance. Another of Ishiguro’s inventions is
the “Elfoid” — a smaller version of the Telenoid that functions as a mobile phone.
16 Google launches balloon internet to connect remote areas without laying
fibre cables
Jun Internet Balloons
In an unusual technological breakthrough, Google has launched helium-filled balloons to beam internet down
to earth. Google calls Project Loon, in recognition of how wacky the idea may sound. If successful, the
technology might allow countries to avoid the expense of laying fibre cable, dramatically increasing Internet
usage in places such as Africa and South-east Asia. Google made its first experiment in the heart of New
Zealand’s South Island. Google eventually hopes to launch 20 kilometers (12 miles) into the stratosphere in
order to connect the world’s 4.8 billion unwired people and their 2.2 billion plugged-in counterparts.
How it works:
Google’s balloons fly free and out of eyesight, scavenging power from card table-sized solar panels that dangle
below and gather enough charge in four hours to power them for a day as the balloons sail around the globe
on the prevailing winds. Far below, ground stations with Internet capabilities about 100 kilometers (60 miles)
apart, bounce signals up to the balloons. The signals would hop forward, from one balloon to the next, along a
backbone of up to five balloons. Each balloon would provide Internet service for an area twice the size of New
York City, about 1,250 square kilometers (780 square miles), and terrain is not a challenge.
Costs involved:
Google has not mentioned the costs involved, although they’re striving to make both the balloons and
receivers as inexpensive as possible, drastically less than laying cables. The signals travel in the unlicensed
spectrum, which means Google doesn’t have to go through the onerous regulatory processes required for
Internet providers using wireless communications networks or satellites.
20 Scientists develop battery made of wood
Jun Battery Made of Wood
Scientists at the University of Maryland have found that a sliver of wood coated with tin could make a tiny,
long-lasting, efficient and environmentally friendly battery. The components used in the battery are thousand
times thinner than a piece of paper and sodium used in the batteries, instead of lithium, makes it environment
friendly. Its low cost and common materials would make it ideal to store huge amounts of energy at once, such
as solar energy at a power plant.
GKCA Update
1 to 30th June
st
27 Google to float helium balloons over rural India for internet connectivity
Internet Balloons
Jun Google
Google will float helium balloons over rural India for Internet connectivity if its pilot project Project Loon yields
promising results. The project has several balloons floating around the earth at an altitude of 20 km, or twice
the height at which commercial aircraft fly, and beaming internet connectivity to remote and rural areas, that
are not served by traditional copper or fibre optic networks. However, Google has not mentioned any time
frame to launch the project in India.
30 Researchers develop camera that captures smells
Capturing Camera
Jun Smell
Amy Radcliffe, a student at Central Saint Martins College of Arts and Design has developed a camera that can
capture the scent of memories, recording smells instead of images. A person needs to place the funnel over
the object or environment they wish to capture, and then a pump sucks the air across an odour trap made of
Tenax - a porous polymer resin which adsorbs the volatile particles that make up the smell. Users can take
their exposed odour traps to the local lab to be processed into delicate vials of the scent.
Sports
05 M S Dhoni’s 15 percent stake in sports management firm Rhiti raises issues
conflict of interest
Jun of
M S Dhoni
Dhoni’s stake in sports management firm Rhiti that also manages him, has raised issues of propriety and
conflict of interest in at least two occasions. Rhiti manages four other current cricketers, Suresh Raina,
Ravindra Jadeja, Pragyan Ojha and RP Singh. This puts Dhoni in the conflicting position where he has a 15%
share of the profits earned by Rhiti Sports from managing these four players, even as he opines or votes on
them in team selection meetings as the Indian captain. In overseas tours also, where the captain has a say in
the playing eleven, the players managed by Dhoni's company might have an unfair advantage.
The second situation is in Dhoni's position as the captain of the Chennai Super Kings (CSK), the Indian Premier
League franchise, for which he, Raina and Jadeja play and whose team principal Gurunath Meiyappan is
currently in custody on charges of illegal betting. Dhoni’s silent stance on the issue is perhaps influenced by the
ties that bind Rhiti and him to CSK and its ownership.
However, Rhiti claimed that Dhoni held 15% equity in Rhiti to secure certain outstanding payments due for
more than one year and that the shares had been sold back to promoters when payments were cleared in April
2013, but there is no evidence on record. Even if Dhoni did not have any share in Rhiti Sports Management Pvt.
Ltd, there are at least two other firms where Dhoni and his family held shares, where the only other partners
were Arun Pandey and Rhiti sports.
Background:
Dhoni and Pandey have been friends for the past 15 years and in 2010, Dhoni left his previous well-known
sports management firm and got into a 3-year deal with Rhiti sports for Rs 210 crore, or an average of Rs 70
crore a year, the priciest ever in Indian cricket.
GKCA Update
1 to 30th June
st
World
04 Floods surge in Europe, cause widespread disaster
Jun Floods
Disaster warnings have been issued in large parts of Central Europe and Southern and Eastern Germany after
flood waters continued to swell rivers following days of heavy rain. Thousands have been evacuated from cities
and governments have deployed defence forces to help build flood defences. Several people have died and
dams have broken open. Many roads and train lines as well as schools have been closed, while shipping has
been stopped on many major rivers. In some states, there are warnings of higher water levels than the record
floods of 2002. Hungary and the Czech Republic have issued a nationwide state of emergency and around 3000
people have been forced to leave their homes across the west of the Czech Republic. The governments of
Germany, Czech Republic and Austria have pledged full support to the affected people and German Chancellor
Angela Merkel has promised 100m euros ($130 million) in emergency aid for flood-hit areas.
10 China jails brother-in-law of Chinese Nobel laureate
Jun China
Chinese authorities have arrested Liu Hui, the brother-in-law of 2010 Nobel peace prize winner Liu Xiaobo, on
charges of committing fraud and sentenced him to 11 years in jail. Liu Hui was convicted of cheating a person,
Zhang Bing, of $490,000 working along with a colleague. Meanwhile, Liu Xiaobo has been undergoing a 11-year
jail sentence on charges of subversion and organizing a petition to overthrow the government since 2009. His
wife Liu Xia is not allowed to visit her husband in jail and has complained that the government has placed
restrictions on her movement around her own house, although there are no charges against her.
These grand projects will have a visible aesthetic effect on Istanbul that infuriates the protestors. Although it
might be too early to predict an economic crisis, financial jitters including the fall of the Lira has been
noticeable since the protests began.
26 Former South Africa President Nelson Mandela on life support
Jun Nelson Mandela
One of the biggest personalities behind the end of Apartheid rule in South Africa, former president, Nelson
Mandela’s health has become critical. He has been placed on life support and is no longer able to breathe
unassisted. Mandela had been undergoing treatment, including renal dialysis, at the Mediclinic Heart Hospital
in Pretoria since June 8.
GKCA Update
1st to 31st July
Starred Articles
Job title key to inner access by Snowden, leaked documents reveal US spied
01
on European allies
Jul World > US Secret Surveillance
How he got access to classified documents: Snowden’s job was actually that of ‘an infrastructure analyst’, who
looks for new ways to break into internet and telephone traffic around the world. Because of his position,
Snowden got hold of the secret documents.
Asylum requests: Snowden’s American passport has been revoked and without travel documents, he would be
unable to pass through Russian immigration control or to travel to another country. Snowden has submitted
asylum requests to 19 countries, including India (which has rejected it). Russia said that Snowden could stay in
Russia, provided he stopped publishing classified documents that hurt the United States’ interests.
Reaction of European allies: The documents leaked by Mr. Snowden showed 38 embassies and missions on a
list of United States electronic surveillance targets. Some of those offices belong to allies like France, Italy,
Japan and Mexico. European officials reacted angrily and said that the claims could threaten talks with
Washington on an important trade-sharing deal and have a severe impact on EU-US relations.
01 Nokia to buy out Siemens in joint venture for $2.2 billion
Jul Corporate > Nokia Siemens Networks
Nokia had entered into an agreement to buy Siemens’ entire stake in their telecom equipment joint venture
Nokia Siemens Networks for 1.7 billion euro (about $2.2 billion). The 50:50 joint venture was set up in 2007.
Post-acquisition, Nokia Siemens Networks (NSN) will become a wholly-owned subsidiary of Nokia.
02 Massive protests break out in Egypt to oust Morsi, military serves 48 hours
Jul ultimatum
World > Egypt Protests
Protests: Millions of people across Egypt demanded the ouster of their first elected head of state, President
Mohamed Morsi, in an outpouring of anger at his not being able to transcend his roots in the Muslim
Brotherhood (MB). Clashes between Mr. Morsi’s opponents and supporters broke out in several cities around
the country, killing at least 15 people. The police are in open revolt against Mr. Morsi and did nothing to stop
the assault or the arson on MB offices.
Background: The protests began in November, when Mr. Morsi tried to declare himself above the courts until
the passage of a new Constitution. Mr. Morsi continued to battle institutions within his own government left
over from Mr. Mubarak, most notably the judiciary and the police.
Military Involvement: The military has served an ultimatum to Morsi to resolve issues within 48 hours, failing
which they will enforce a roadmap. The military, however, specifically denied a ‘coup’. Egypt’s future stability
is now in question. It economy has been beset with issues: fuel shortages, dwindling hard currency reserves
and worries about its wheat supplies. The military’s move to force the MB from power, despite its electoral
victories, could set a precedent for future instability.
GKCA Update
1st to 31st July
02 PMO asks for discussion on Jet-Etihad deal in Cabinet, wants to examine
stake sale
Jul Corporate > Jet-Etihad Deal
The Prime Minister’s Office (PMO) has asked the civil aviation ministry to bring the Jet-Etihad deal for
discussion in the Union Cabinet and also wants to examine the stake sale. The PMO asked for the discussion
after it was felt that the deal was "complex" and several MPs opposed it on the ground that it will divert
business away from Indian centres like Delhi to Abu Dhabi. The over Rs 2,000 crore planned acquisition by
Etihad would have ordinarily gone to the Cabinet Committee on Economic Affairs, but the PMO has pointed to
SEBI’s concerns over the structure of the company being proposed as well as the Foreign Investment
Promotion Board’s (FIPB) concern that whether the deal is within the contours of Indian law and policies.
02 India launches first dedicated navigation satellite
Jul Science and Technology > Indian Navigation Satellite
India on Monday successfully launched its first dedicated navigation satellite from the Satish Dhawan Space
Centre in Sriharikota. Launched at a cost of approximately Rs. 125 crore, the IRNSS-1A is the first of the seven
satellites constituting the Indian Regional Navigation Satellite System (IRNSS) space segment and has a mission
life of 10 years. It is designed to provide accurate position information service to users in the country as well as
the region extending up to 1,500 km from its boundary.
04 Army puts Morsi under house arrest, more than 50 pro-Morsi supporters
dead
Jul shot
World > Egypt
Egypt Army detains Morsi
Egypt’s military has toppled Egyptian president Mohamed Morsi and reportedly put him under house arrest
and has arrested some of his top supporters. Adly Mansour, head of the country's Supreme Constitutional
Court, will replace Morsi as Egypt's interim president. A liberal economist Hazem el-Beblawi has been
appointed as the Prime Minister and diplomat Mohamed ElBaradei as a vice president for foreign relations,
both appointments aimed to assure the western allies and donors that Egypt must depend on. The Muslim
Brotherhood has rejected the new political roadmap announced by the military-backed interim leadership that
sets a fast track for amending the Islamist-drafted constitution and holding new parliamentary and presidential
elections by early next year.
Morsi supporters shot dead
In one of the worst single incidents of violence, 54 pro-Morsi supporters, who were staging a sit-in, have been
shot dead near a military barrack in Cairo, where Morsi is believed to be in detention. The Army has denied
involvement and said that a ‘terrorist group’ had tried to storm the barracks. Mansour has ordered the
formation of a judicial committee to investigate the attacks.
Aid from Arab states
The United Arab Emirates would provide a grant of $1 billion and an interest-free loan of $2 billion, while Saudi
Arabia would reportedly provide an additional $5 billion, to stabilize the turmoil surrounding Morsi’s
overthrow that has pushed the teetering Egyptian economy closer to the brink of collapse and to steer clear of
the chances of Arab Spring democracy movements.
United States to review aid to Egypt
GKCA Update
1st to 31st July
The United States is reviewing the implications for American aid to Egypt after the ouster of President
Mohamed Morsi, and if the U.S. government determines that the army's move qualifies as a coup it would
have to cut off more than $1 billion in aid to Egypt, mostly to the military.
04 CBI names officials of Gujarat Police and IB in Ishrat Jahan fake encounter
case
Jul India > Ishrat Jahan Fake Encounter Case
The CBI has named officials of the Gujarat police and the Intelligence Bureau in the fake encounter case of 19year-old Mumbra college student Ishrat Jahan and three others in June 2004 and called it a cold-blooded
murder. Among the accused are absconding additional DGP P P Pandey and DIG D G Vanzara, who is already
charged with murder in Sohrabuddin Sheikh and Tulsiram Prajapati fake encounters. Although no IB officer has
been named, the CBI has accused the IB of providing the weapons to place them on the bodies of the
encounter victims.
04 Newspaper reveals France has secret data collection programme, US Postal
Jul Service tracks all mails of US citizens
World > US Secret Surveillance Programme
French newspaper Le Monde has disclosed that France has its own large program of data collection, which
sweeps up nearly all the data transmissions, including telephone calls, e-mails and social media activity that
come in and out of France, without clear legal authority. It also accused the government of recording data
from large American networks like Google and Facebook. Although French officials didn’t comment on this, the
disclosures, made the French outrage against the US programme of spying on its allies seem hollow.
Fresh revelations have brought to light a longtime surveillance system of the US Postal service called mail
covers, a forerunner of a vastly more expansive effort, the Mail Isolation Control and Tracking program, in
which Postal Service computers photograph the exterior of every piece of paper mail that is processed in the
United States. It is not known how long the government saves the images. The program was created after the
anthrax attacks in late 2001 that killed five people, including two postal workers and have since then helped
avert and detect various crimes and illegal activity. The programme shows that all postal mail is subject to the
same kind of scrutiny that the National Security Agency has given to telephone calls and e-mail.
05 Delhi doctors create software to differentiate malaria from dengue
Jul Science and Technology > Software
A team of doctors from Sir Ganga Ram Hospital (SGRH) in Delhi in collaboration with a Russian lab have
developed software to differentiate dengue, malaria and other viral fevers, otherwise a challenging task due to
their similar symptoms. The software expected to aid in faster detection, reduction in cost of treatment and
minimization of antibiotic resistance as only fever-specific antibiotics need to be given to patients.
07 9 explosions rock Mahabodi Temple at Bodh Gaya, 2 injured
Jul India > Bodh Gaya Blasts
A series of 9 low intensity blasts went off in and around the Mahabodhi temple, a UNESCO World Heritage site
associated with the Buddha’s enlightenment on the 7th of July. The first blast occurred at 5:45 a.m. Nine
explosions followed in the next hour — four at temple sites and five in a 500-meter radius. A 50-year-old
Tibetan and a 30-year-old Myanmar national were injured in the attack. The terror outfit Indian Mujahideen
(IM) is believed to be behind the blasts. Arrested IM operatives had revealed during interrogation in October
2012 that Dilsukhnagar in Hyderabad and Buddhist temples in Bodh Gaya were targeted by them. Both the
GKCA Update
1st to 31st July
places saw blasts and now security agencies are seriously looking at other targets revealed by them. The
National Investigation Agency (NIA) has taken over the investigation of the serial bomb blasts.
09 Currency controls in Cyprus increase worry about Euro system
Jul Economy > Cyprus
Capital controls introduced in Cyprus as part of a bailout for the country’s ailing banks has made a euro in
Cyprus no longer the same as one in France, Germany or Greece. With a gross domestic product of only about
$ 23 billion, Cyprus has introduced currency controls on the Euro to restrict the flow of capital from the
country. It has raised a crucial question that whether the breakup of the Eurozone had already started since
the Euro can’t have restricted movement and can’t have a different value and status within the 16 countries in
the Eurozone. The rules of the European Union ban restrictions on the movement of capital, but the measures
by Cyprus have been endorsed by the European Central Bank as essential to prevent money from fleeing the
country. Although rigid capital controls introduced in March have been steadily relaxed, Cypriots need to
present invoices and other documents to justify moving their money. Transfers over 500,000 euros by a
company and 300,000 euros by an individual, require the central bank’s approval.
10 Arundhati Bhattacharya to be named SBI's first woman managing director
Jul Corporate > SBI
SBI Caps chief Arundhati Bhattacharya will be appointed as the State Bank of India's first woman managing
director, a decision that is expected to pave the way for her to take over as the chairman of the bank.
Bhattacharya will succeed Diwakar Gupta, who retires at the end of the month. Even now, there are at least
three women public sector bank chiefs although SBI is yet to match its smaller peers. In the private sector,
Chanda Kochhar is ICICI Bank MD & CEO and Shikha Sharma heads Axis Bank.
11 Supreme Court says MPs and MLAs to be disqualified if they face conviction
Jul charges
India > Supreme Court
In a path-breaking judgement, the Supreme Court has scrapped a provision in the Representation of the
People Act that offered convicted politicians a three month window to appeal convictions and keep their seats
while those appeals were pending. MPs or MLAs could henceforth be disqualified even if they are slapped with
minor fines and jail terms in offences such as insulting the national flag or defiling a place of worship. However,
lawmakers who have already been convicted by courts would not incur disqualification if they had appeals
against such convictions pending. As of now, 31% legislators are said to be facing some trial or the other in a
variety of cases.
11 RBI curbs currency derivatives trade by banks and raises Marginal Standing
(MSF), SEBI raises margin for non-bank traders
Jul Facility
Economy > RBI
The combined steps of the RBI and the SEBI to reduce speculation helped the rupee recover and brought in
signs of stability, though a sustained recovery might prove elusive unless the trade balance improves. The
Reserve Bank of India banned banks from indulging in proprietary trading in currency derivatives, which took
the pressure off the currency, and the Securities & Exchange Board of India raised margin requirements for
non-bank traders.
The RBI also raised the Marginal Standing Facility (MSF) rate and Bank Rate each by 200 basis points to 10.25
percent and capped the amount up to which banks can borrow or lend under its daily liquidity window at 1
GKCA Update
1st to 31st July
percent of banks' deposits, roughly 750 billion rupees. It also announced a 120 billion rupee sale of
government bonds for Thursday, 18th July.
13 Modi accuses Congress of hiding in veil of secularism, his ‘puppy’ comment
on Gujarat riots irks many
Jul Politics and Government > Narendra Modi
Gujarat CM and BJP’s chief campaigner Narendra Modi’s recent comments on the Congress and the 2002
Gujarat riots has created quite an upheaval in the Indian political scenario. Accusing the UPA government over
the downturn in economy, falling rupee and corruption at a rally in Pune, Modi said that “the moment there is
a crisis, they (Congress) wear the burqa (veil) of secularism and hide in a bunker.” The Congress responded
that it was much better than "naked communalism".
In yet another incident, defending himself against accusations over the 2002 riots in an interview to the
newswire Reuters, Modi said he was sad about the riots, adding he would be sad even if a “puppy” came under
a car. He said his government used its “full strength” to “do the right thing” and he had no guilty feeling.
Modi’s comments came under fire from the ruling Congress, the BSP and estranged ally JD (U) as well.
15 India’s fifth generation fighter to miss development deadline as Russia hikes
cost
Jul India > 5th Generation Fighter Aircrafts
India’s biggest defence project, development of the Fifth-Generation Fighter Aircraft (FGFA), with Russia is
unlikely to be concluded in the 2013-14 fiscal as Russia has hiked costs. India was planning to induct the FGFA
from 2022 onwards, with IAF test pilots getting three prototypes in 2014, 2017 and 2019 for trials. The
timeframes would now have to be revised. India will eventually end up spending close to $35 billion over the
next two decades to induct over 200 such fighters. The final design contract now being negotiated was pegged
at $11 billion, with India and Russia sharing $5.5 billion each. Each fighter was to cost over $100 million. Now,
a committee of specialists and finance officials will verify the rise in costs and an internal contract negotiation
committee is also in progress to steer the project.
15 Egypt to investigate Morsi’s 2011 jailbreak, freezes assets of top
brotherhood leaders
Jul World > Egypt
Egyptian prosecutors will investigate allegations of jailbreak by ousted president Mohamed Morsi and more
than 30 other Muslim Brotherhood leaders during the 2011 revolution to topple Hosni Mubarak. It has been
alleged that Morsi had escaped from prison with help from the Palestinian militant group Hamas. Hamas has
denied any role and Morsi says local residents helped him escape.
Egypt's public prosecutor has ordered the freezing of assets belonging to 9 top Muslim brotherhood leaders,
including the group's general guide Mohamed Badie. Assets of five Islamists from other groups were also
frozen in connection with four deadly incidents since Morsi's ouster.
15 Government shuts down Telegraph service
Jul India > Telegraph Service
The government of India officially closed down the 160 year old Telegraph service on Sunday, July 14, 2013.
The Government decided to wind up the department to minimise losses to the Bharat Sanchar Nigam Limited
(BSNL). Owing to poor usage of the service and dwindling revenue, the government has taken this extreme
GKCA Update
1st to 31st July
step. The Telegraph service was established in 1850 in Calcutta (Now Kolkata). Many people visited telegraph
offices to send the last telegram to their near and dear ones and experience a slice of the soon to become
history.
16 Jamaat Boss, Ghulam Azam, 91, gets 90 years in jail for war crimes
Jul World > Bangladesh
The leader of Bangladesh's fundamentalist Jamaat-e-Islami, 91 year old Ghulam Azam, has been sentenced to
90 years in jail for masterminding atrocities during the 1971 Bangladesh liberation war in which around 3
million people were killed. The wartime head of Jamaat and now its spiritual leader was spared the death
penalty because of his age and health. He was found guilty of murder and torture by the International Crimes
Tribunal. Azam was the fifth Jamaat leader to be sentenced for war crimes but his was the most awaited
verdict in Bangladesh swept by the anti-fundamentalist Shahbag movement. With Jamaat calling a strike in
protest against the sentence, clashes broke out in various parts of Bangladesh.
16 Supreme Court lifts ban on dance bars in Mumbai
Jul India > Dance Bar Ban
Dance bars in Mumbai are set to make a comeback after a gap of 8 years with the Supreme Court upholding a
Bombay High Court’s decision against the ban. In 2005, the Maharashtra Government imposed a ban on dance
performances in permit rooms, beer bars and eating houses. In 2006, The Bombay High Court ruled that the
ban violated the constitutional right to earn a living and was against the public interest. The Supreme Court
ruled that there was no justification that a dance permitted in dance bars would be derogatory, exploitative or
corrupting of public morality and the ban was an overreaction on the part of the state government. The
judgement was welcomed by hoteliers and bar dancers while the state government said that it would seek
legal advice on how to keep dance bars shut.
16 22 children die after consuming mid-day meal in Bihar
> Mid-Day Meal Tragedy
Jul India
22 children have died till now and 25 more have fallen sick after consuming free mid-day meal at a
government school in the village of Masrakh in Bihar’s Saran district. The children were admitted to hospitals
in the nearby town of Chhapra and the state capital, Patna. The poisoned meal consisted of rice, pulse and
soyabean and a preliminary investigation suggests the food had traces of an organo-phosphate used as an
insecticide on rice and wheat crops. It’s believed the food was not washed before it was served at the school.
Chief Minister of Bihar, Mr. Nitish Kumar, has ordered a high-level enquiry into the incident and has
announced a compensation of Rs. two lakh each to the families of the deceased. Following the incident, violent
protests erupted in Chhapra where people armed with sticks and rods set ablaze a bus and damaged public
property.
19 Detroit, world’s largest auto-making capital, files for bankruptcy
Jul Economy > Detroit
Detroit, the auto capital of the world, became the largest US city ever to file for bankruptcy. Detroit has more
than USD18 billion in debt and unfunded liabilities and doesn't have the revenues to meet those obligations
and provide an adequate level of services to its people, who pay the highest taxes per capita in Michigan.
Detroit which at one time had some two million population has now reduced to just 70,000 and bankruptcy is
the only feasible option to fix the city’s finances. Detroit's move, if successful, could prove to be a model for
other financially distressed cities across the US.
GKCA Update
1st to 31st July
20 Six sentenced to life imprisonment over Swiss Gang rape case
Jul India > Swiss Gang-Rape Case
Six men accused in the gang rape and robbery of a Swiss tourist in March this year in Madhya Pradesh ,have
been sentenced to life imprisonment and a fine of Rs. 10,000 has been imposed on each of them. The victim, a
38-year-old Swiss national, had come to India along with her husband on a holiday. They were cycling from
Orchha to Agra and had stopped near Jhadia village in Datia, 405 km north of Bhopal, when they were targeted
by these six men. The accused had also robbed the couple of their belongings.
22 Japan set to have a stable govt. as PM Shinzo Abe wins thumping victory in
House
Jul Upper
World > Japan Upper House Polls
Japanese Prime Minister, Shinzo Abe’s Liberal Democratic Party (LDP) won a thumping victory in the Upper
House elections of the Japanese parliament. His party won 65 of the 121 seats being contested; with its junior
partner New Komeito securing 11. The country's main opposition party, the Democratic Party of Japan, won
just 17 seats. Since 2007, the upper house parliamentary deadlock has led to a new Prime Minister assuming
office every year. The ruling party’s victory in both houses of parliament will ensure Japan's first politicallystable government since 2006. Mr. Abe’s primary focus, now, would be to pursue his radical economic policies
to revitalise the Japanese economy and rewrite the pacifist post-war constitution, which confines the nation's
military to only a self-defence force. Another challenge would be restarting Japan’s nuclear reactors because a
strong anti-nuclear sentiment is still present following the March 2011 Fukushima disaster.
22 Amartya Sen says he doesn’t want Modi to be India’s PM
Jul Politics and Government > Amartya Sen
Coming out strongly against Gujarat Chief Minister Narendra Modi, Nobel laureate Amartya Sen said he does
not want him to become India's prime minister as he does not have secular credentials and did not do enough
to make minorities feel safe. Sen also criticised Modi's model of governance saying he did not approve of it and
said that Gujarat needs to do much more on the health and education sectors and bring equity.
22 Major earthquakes strike China and New Zealand, death toll rises to 94 in
China
Jul World > Earthquakes
A 6.6 magnitude earthquake struck a rural, semi-arid area of northwestern China's Gansu province killing 94
people and injuring more than 1000. About 1, 23, 000 people were affected by the quake and almost 2,000
homes were completely destroyed, and about 22,500 damaged. Paramilitary People's Armed Police has
launched a massive search for survivors. The Chinese Red Cross would help with relief work. Heavy rains
predicted for the next week could hamper rescue efforts.
Meanwhile, a 6.9 magnitude earthquake struck about 35 miles south of New Zealand’s capital, Wellington, in
the channel between its northern and southern islands. No fatalities or serious injuries were reported. A
disaster warning has been issued to all people working in the central city.
GKCA Update
1st to 31st July
22 Al Qaeda militants flee Iraq jail in violent mass break-out, blasts rock
northern Iraq
Jul World > Iraq
More than 500 inmates, most of them convicted senior members of al Qaeda who had received death
sentences, escaped from Iraq’s Abu Ghraib jail as Al Qaeda comrades launched a military-style assault to free
them. Suicide bombers armed with car bombs blasted their way into the compound and attacked guards with
mortars and rocket-propelled grenades. Other militants fought off security reinforcements sent from Baghdad.
Ten policemen and four militants were killed in the ensuing clashes.
A similar attack followed on another prison, in Taji, around 20 km (12 miles) north of Baghdad, but guards
managed to prevent any inmates from escaping. Sixteen soldiers and six militants were killed. Recent attacks
by Sunni insurgents backed by Al Qaeda have targeted mosques, amateur football matches, shopping areas
and cafes. Two attacks on Monday, 21st June, rocked Mosul, the northern Iraq metropolis, where blasts killed
at least 20 people and injured many.
Planning Commission says poverty ratio declined 15% in 2011-12 from
25 2004-05, Congress says full meal available for Rs. 12 and 5 at Mumbai and
Jul Delhi
Politics and Government > Poverty Ratio
The Planning Commission on Tuesday said poverty ratio in India had declined to 21.9 percent in 2011-12 from
37.2 percent in 2004-05 on account of increase in per capita consumption. The Planning Commission’s report
means that the people whose daily consumption of goods and services exceed Rs.27.20 in villages and Rs.33.33
in cities are not poor. The BJP has slammed the Planning Commission over the formula for calculating poverty
figures.
Congress spokesperson Raj Babbar said that one can have a full meal for Rs.12 in Mumbai whereas Congress
leader Rasheed Masood of Delhi said that on can get a meal for Rs. 5 in Delhi Jama Masjid. The comments have
received widespread criticism from all angles, including the BJP and the JD (U). The Congress has downplayed
the comments saying that the Planning Commission has compared the decline in poverty in 2004 during the
NDA regime with that of 2012 during the UPA tenure.
26 120 Morsi supporters shot dead in deadly state massacre, US not to classify
Jul Morsi ouster as a coup
World > Egypt
Millions of Morsi supporters took to the streets in protest after former president Mohamed Morsi was charged
with espionage and murder. In a violent massacre by the state, at least 120 supporters of Morsi have been
shot dead by security officials at a sit-in in East Cairo. Morsi supporters allege that people were shot in the
head and above the waist. Medics said that bullet holes in the centre of the head and in the back of the skull
proved that the snipers were shooting to kill and not just to injure.
The United States has determined the ouster of Morsi by the military as not being a coup. A coup
determination would force the United States to end military aid to Egypt.
28 Publicis and Omnicom merge to create world’s biggest advertising company
Jul Corporate > Mergers and Acquisitions
France's Publicis and US firm Omnicom have announced a merger to create the world's biggest advertising
company worth $35.1bn (£22.8bn). Omnicom chief executive John Wren and Publicis Groupe boss Maurice
GKCA Update
1st to 31st July
Levy are to become joint CEOs. The companies see savings of $500m from the merger, and the deal is
expected to be finalised by the end of the March 2014. The merger should be "tax-free" and the holding
company would be based in the Netherlands.
30 Government announces bifurcation of Andhra Pradesh to create Telangana
Jul India > Telangana
The government on Tuesday, 30th July, announced the bifurcation of Andhra Pradesh to create a separate
state of Telangana. With a population of over 3.5 crore, India’s 29th state will have 17 Lok Sabha seats and 119
assembly seats. The decision is expected to strengthen the Congress Party’s fortune in the state ahead of the
2014 Lok Sabha elections. Hyderabad will remain the common capital of the splintered states for at least 10
years. The creation of Telangana is expected to overcome the poverty and backwardness in the region which
were at the roots of the separate state movement.
Bank Specific
01 Shadow banking grows in China
Jul China
China’s biggest banks are using lightly regulated wealth management products to repackage old loans and
prop up risky companies and projects that might not otherwise be able to borrow money. The loans are often
made off the balance sheet, and therefore outside the purview of bank regulators, which is why experts call it
shadow banking. They are made at higher interest rates, so everyone right from the borrower, the banks, to
the investor of the wealth management product, benefits, as long as the borrower repays. Shadow banking is
helping drive the rapid growth of credit in a weakening economy, which could lead to a series of bank failures.
By the end of last year, China’s shadow banking activity was valued at $6 trillion, twice the level in 2010, and
now the government is taking all possible steps to curb the practice.
02 Big Indian corporates seek banking license
Jul Banking License
26 companies, including conglomerates, such as Aditya Birla Group, Tata Sons, and Anil Ambani's Reliance
Group and large corporates such as L&T Finance, Venugopal Dhoot's Value Industries and Bajaj Finserv have
applied for a bank license. The RBI will face the tough job of selecting a handful of candidates who it feels are
best placed to run a bank. Among the 26 applicants, are also public sector promoted entities such as India
Post, LIC Housing Finance and post-liberalization finance companies, including Edelweiss, India Infoline and
Indiabulls etc. After YES Bank in 2003, no new bank has been given a licence.
22 ICICI Bank ties up with Movida for mobile payments
Jul ICICI
Movida, the mobile payments joint venture between Visa and Monitise, today said private bank ICICI Bank will
utilise its payment services. The service will enable ICICI Bank payment card holders to pay bills and recharge
prepaid airtime among others. The payment solution is designed to operate across all mobile networks using
any payment card and can be accessed through all kind of mobiles including basic handsets.
GKCA Update
1st to 31st July
29 UIDAI and banks disagree on use of biometric authentication at ATMs
Jul Aadhar for ATM Transactions
The Unique Identification Authority of India (UIDAI) that issues AADHAR cards is pushing for biometric
authentication for credit card and ATM transactions. However, bankers are disagreeing saying that upgrading
each and every automated teller machine and point of sale terminal will be very expensive. An RBI-constituted
panel has pegged the cost of banks' readiness for Aadhaar at 4,259 crore compared with 3,556 crore the
banking industry has to spend to upgrade machines to implement biometric authentication. UIDAI might give
dissent note on cost figures arrived at by the panel. UIDAI is of the view that Aadhar-based payment
technology can be cost effective and beneficial as it will take electronic payments to the masses.
Corporate
01 Vodafone offers Rs.4, 000 crore for retaining 2G spectrum
Jul Vodafone
Vodafone India has offered to pay Rs.4,000 crore for retaining premium 2G spectrum in Delhi, Mumbai and
Kolkata, where its licences will expire in November, next year. The government, however, has plans to auction
spectrum in the three circles in the forthcoming round scheduled later this fiscal.
02 Google might launch Flight Search in India, flight aggregators cry foul play
Jul Google Flight Search
Google would likely launch its ‘Flight Search’ service in India, which might put the business model of Indian
flight aggregators such as Makemytrip, Yatra, and Cleartrip etc. under threat. Flight Search lets users compare
fares offered by airlines and book tickets directly from airline websites. This could, in effect, make flight
aggregators redundant. The companies are considering steps to protect their interests, including a possible
complaint to the Competition Commission. They further claim discrimination by Google when it comes to
search results for queries relating to online travel.
10 Yahoo shuts down early web search engine AltaVista
Jul AltaVista
Yahoo has closed down AltaVista, one of the most popular early web search engines. AltaVista was introduced
in 1995, three years before Google Inc. was founded. AltaVista's popularity had already faded by the time
Yahoo acquired it as part of its $1.7 billion purchase of Overture Services Inc. in July 2003. Overture had
bought AltaVista earlier that year from Massachusetts-based CMGI Inc. AltaVista's decline began after it
expanded to become more like Yahoo, offering a bevy of online services instead of sticking solely with search.
By the time it decided to revert and focus solely on search, its finances had declined and Google had gained
ground as the top search engine.
10 Flipkart raises $200 million, biggest in Indian e-commerce space
Jul Flipkart
Online retailer Flipkart has raised $200 million (about Rs 1,200 crore) from its existing investors, the single
largest round of investment in the Indian e-commerce space. The investment values the company at $1.5
billion. The investors are Naspers, the South African internet major that recently bought out bus ticketing
startup redBus, private equity firms Accel Partners and Tiger Global, and San Francisco-based family
GKCA Update
1st to 31st July
office Iconiq Capital. The total investment in the company, over five rounds of funding, is now over $380
million.
Economy
01 Gold prices increase after falling to 3-year low last week
Jul Gold
Gold rose by Rs. 45 to Rs. 26,475 per 10 grams and silver increased by Rs. 200 to Rs. 41,200 per kg on increased
offtake by jewellers and coin makers. Gold and silver, rose in the bullion market following sustained buying by
stockists and retailers, after Gold dropped to its lowest level in 34 months on 29th June which lured buyers and
led to an increase in its demand.
04 2 prime European banks promise to keep rates low, assure investors of easy
Jul money
Europe
The European Central Bank and the Bank of England have promised that they would keep interest rates at the
present level or even lower for an extended period of time. The extended period would definitely be more
than 12 months. The forward guidance is aimed at providing more certainty to investors at a time when
tensions in Europe are rising again following a political crisis in Portugal, which has raised questions about
whether the region’s governments will be able to withstand popular discontent with their policies of cutting
budgets to bring public debt under control. Although investors had pushed up the risk premium on bonds
issued by troubled Eurozone countries, market rates on Italian and Spanish bonds retreated after the banks’
announcement. The commitment to keep rates low reassured investors that they can count on easy money for
the foreseeable future.
10 PM backs plan to raise FDI across sectors to boost economy
Jul FDI
Prime Minister Manmohan Singh has backed the plan to raise foreign direct investment (FDI) ceiling in telecom
to 100%, besides allowing overseas funds to flow into several sectors without prior government approval. The
list of sectors where companies will be allowed to invest through the so-called automatic route includes oil and
gas refining, courier and commodity and power exchanges. The higher cap for telecom is intended to send an
encouraging message to global investors. Regarding FDI in defence, Defence minister A K Antony has opposed
higher foreign investment in the sector citing vulnerabilities. However, he has left the door open for allowing
over 26% FDI backing in case-to-case clearances by the Cabinet Committee on Security (CCS).
23 Gold may get dearer as RBI takes measures to boost export
Jul Gold
Gold jewellery may become expensive as the Reserve Bank of India (RBI) has made it mandatory to export 20%
of all imported gold in the form of ornaments. Besides, traders will now be prompted to sell gold to overseas
buyers even at lower prices to meet the latest export rules. This might force them to raise domestic jewellery
prices to cover losses. RBI also specified that gold importers would have to supply gold in any form only to
jewellers or dealers supplying ornament manufacturers to stem investment in gold in order to bring down the
country’s Current Account Deficit (CAD) and strengthen a falling rupee.
GKCA Update
1st to 31st July
30 Government and RBI, both say promoting growth is the other’s
Jul responsibility
Growth
Finance Minister P Chidambaram endorsed the measures taken by the RBI recently to stabilise the rupee, but
said that the RBI’s mandate should not be limited just to price stability, but also promote growth and generate
employment. He added that banks had enough funds to meet the credit demands and the industry should
come up with large investment projects.
In response, RBI governor D Subbarao has made it clear in his policy that the responsibility of bringing back the
growth momentum lay with the government. The government should undertake structural reforms to ease
supply side bottlenecks and thereby push growth.
31 Detroit bankruptcy puts $2.5 billion city art collection under threat
Jul Detroit
Detroit which has a $18 billion long-term debt is looking at all sources of revenue to pay back creditors, even
selling off Detroit’s prized art collection at the Detroit Institute of Arts (DIA). The world-famous 60,000-piece
collection is worth up to $2.5 billion and includes world famous works by Rembrandt, Matisse, Cézanne, Degas,
Van Gogh and Gauguin. Any attempts to liquidate the museum's collection could face resistance from arts
patrons, who still donate millions of dollars a year to the DIA. Michigan Attorney General Bill Schuette wrote a
legal opinion arguing that the collection is held by a charitable trust for the people of Michigan and that the
city doesn't actually own the art and hence can't sell it.
India
09 Penguin Random House asks author Vikram Seth to return $ 1.7 million
advance
Jul Vikram Seth – Penguin Random House deal
The newly merged entity and now the World’s largest book publisher Penguin Random House has asked
author Vikram Seth to return his $1.7 million (approx Rs ten crore and thirty lakh) advance, a part of which was
paid to him for A Suitable Girl, the sequel to his best-selling novel, A Suitable Boy. Seth was scheduled to
submit his manuscript this June but has been unable to do so leading to the publishers' demand. The drastic
step might have been taken by Penguin Random House in an effort to cut costs and streamline operations.
Seth, who commands million dollar advances and took eight years to write the voluminous ‘A Suitable Boy’,
works on his own terms and his agent is trying to negotiate with the publishers for a new date.
13 13 Mumbai policemen sentenced to life in jail for Lakhan encounter killing
Encounter
Jul Lakhan
21 convicts including 13 policemen have been handed out life sentences in the case of the 2006 fake
encounter killing of former Chhota Rajan aide Lakhan Bhaiya alias Ramnarayan Gupta. Among the six police
officers and seven constables convicted is former encounter specialist Pradeep Suryavanshi. The main accused,
former encounter specialist Pradeep Sharma, has been acquitted. Lakhan Bhaiya was picked up from Vashi and
killed in an encounter at Versova on Nov 11, 2006. This is the first encounter case in Mumbai in which so many
policemen have been convicted.
GKCA Update
1st to 31st July
13 CBI says Intelligence Bureau (IB) tapes, which reveal LET’s motive to kill
Modi, made up
Jul Ishrat Jahan Fake Encounter
Police Inspector Bharat Patel who has been arrested by the CBI in the Ishrat Jahan fake encounter case has said
that IB officials Rajinder Kumar, M K Sinja and others made alleged terrorist Amjadali Rana speak to Pakistanbased Lashkar-e-Toiba commander Muzammil over satellite phone and cell phone and recorded the
conversation while he was in their "illegal" custody at Arham Farm on the outskirts of Ahmedabad. The IB
tapes pointed to Muzammil instructing Javed, an alleged terrorist killed in the fake encounter to convince
Jishan Johar, another alleged terrorist, to eliminate right wing leaders including Narendra Modi and L K Advani.
However, the CBI chargesheet claims that Rana told crime branch officials that LeT had no plan to kill Modi,
but he was sent to target crowded places.
22 India among countries facing highest risk of importing deadly MERS virus
Jul MERS Virus
Scientists from St. Michael’s hospital in Toronto have warned that the deadly MERS coronavirus that has
emerged in the Middle East could spread faster and wider in India during the annual festivals of Umrah and
Haj, when millions of domestic Muslims will visit Saudi Arabia in the month of October this year. Around 1.7
lakh Indian Muslims will visit Haj this year. Mumbai and Kozhikode are at the top of the list of susceptible
cities, as both cities have received more than 3, 50, 000 commercial air travellers between June and November
2012 from the four countries where MERS cases have been traced back to.
23 22 killed in Bengal Panchayat polls violence
Jul Bengal
22 people have been killed and several others, including minors, have been injured in the violence that has
engulfed West Bengal’s Panchayat polls. Mangled by splinters from a cruse bomb, a child’s hand had to be
amputed whereas three children, aged below 10 years, were injured when they mistook stockpiled bombs for
balls at the house of a Trinamool woman candidate. Even the Central forces were targeted in Malda’s Ratua,
where they were forced to open fire, in which a villager died. Five people have died and more than 50 people
from the CPI (M), the Congress and the Trinamool Congress have been injured in post-poll clashes in
Murshidabad district. The fifth and final phase of polling is on July 25.
23 Maharashtra to ban all forms of chewable tobacco, except raw tobacco and
raw supari
Jul Tobacco Ban
The Maharashtra government has banned the manufacture, storage, distribution, or sale of tobacco and betel
nut, which is either flavoured, scented or mixed with any of the said additives, and whether going by the name
or form of gutka, paan masala, flavoured / scented tobacco, flavoured / scented supari, kharra (also known as
mawa, which is a mixture of tobacco and betel nut). Except raw tobacco and raw supari, all other forms of
tobacco would be banned.
23 Wal-Mart tells government it cannot meet 30% sourcing clause
Jul FDI
The world's largest retailer Wal-Mart has expressed its inability to the government on meeting the sourcing
norm in the multi-brand segment that requires 30% procurement from Indian small industries, stating it can
procure only about 20%. However, officials have said that it would be really difficult for the government to
GKCA Update
1st to 31st July
ease this provision as it is a politically sensitive issue. Several global retailers have raised their concerns over
the sourcing restriction. Although 51 percent FDI is now allowed in multi-brand retail, no formal proposal has
been received by the government yet.
24 Salman Khan charged with culpable homicide, charges 130 crores for Bigg
7
Jul Boss
Salman Khan
Bollywood star Salman Khan has been charged with culpable homicide by a Mumbai court. In September 2002,
he allegedly drove his car into a bakery in Mumbai, killing a man sleeping on the street and seriously injuring 3
others. If convicted, he faces 10 years in prison. The trial will begin on 19th August.
Salman, who was reportedly getting a whopping Rs. 2.5 crore per episode for anchoring Bigg Boss Season 6,
will now be tucking in Rs. 5 crore per episode for the reality show's season 7. Rs. 5 crores per episode
multiplied by 26 episodes totals to a huge amount of Rs. 130 crores. With this, he will become the highest paid
actor on small screen.
25 Tablets register growth of 424% in India, Apple iPhone sales also record
400% growth
Jul Tablets and iPhones
Tablets are eating into the PC market and have registered a phenomenal growth of 424 percent. The decline in
the growth of PC is a matter of concern which is growing by only 5 percent, as India still has very low PC
penetration. The combination of basic functioning of a PC coupled with affordability has made tablet PCs a
favourite among consumers.
Apple Inc. CEO Tim Cook has said that iPhone sales in India beat all expectations to soar 400% in the April-June
quarter just a year after he famously said he loved India but felt business opportunities were much more
elsewhere.
26 Bihar teachers stay off mid-day meal duties
Jul Mid-Day Meal
Nearly three lakh government teachers boycotted the mid-day meal scheme on the grounds that it constituted
non-academic work. Bihar Primary School Teachers' Association said that their repeated requests to the
government to remove primary teachers from mid-day meal duty had not been attended. It also said that the
Saran school principal, arrested on charges related to the mid-day meal deaths of July 16, had been wrongly
framed in the case.
Politics & Government
02 India loses $ 5 billion Kazakhstan oilfield deal to China
Jul India-Kazakhstan Oil Deal
India's ONGC has lost the giant Kashagan oilfield to the Chinese after Kazakhstan blocked its $5 billion deal to
buy US energy major Conoco Phillips' stake in the Caspian Sea oilfield. ONGC had in November last year struck
a deal with Conoco Phillips to buy its 8.4 percent stake in Kazakhstan's biggest oilfield, Kashagan. According to
Kazakh law, the government has the right to buy any oil asset for sale in the country at the price agreed on by
the buyer and seller. Kazakhstan will now buy the 8.4 stake and sell it to China National Petroleum Corp (CNPC)
for a reported $5.3-5.4 billion. India has lost at least $12.5 billion of deals to China in past years.
GKCA Update
1st to 31st July
09 Chinese Army enters Ladakh yet again, raids Indian post
Jul Indo-China Relations
In yet another incursion, Chinese troops crossed over into the crucial Chumar post area and smashed bunkers
and cut wires of cameras before taking away an Indian surveillance camera after dismantling it on June 17. The
Chumar post is in the same area which had sparked off the 21-day faceoff between the two sides in April. The
video camera was returned on July 3 after an Army-ITBP team lodged a strong protest during a flag meeting at
Spanggur Gap in Chushul sector. Despite the need for good relations harped by both countries during the
recent visits of Chinese Premier Le Keqiang to India and the Indian Defence Minister A. K. Antony to China,
Chinese Troops continue to infiltrate into the Indian territory along the Line of Actual Control (LAC).
09 Leaked report suggests Bin Laden lived undetected because of Pakistani
Jul negligence
Pakistan
A leaked Pakistani government report suggests Osama Bin Laden lived in Pakistan undetected after fleeing
Afghanistan in 2001, because of the culpable incompetence and negligence at almost all levels of the Pakistani
military and government. Over a period of six years the unusual nature of the compound, where Laden lived,
failed to draw the attention of Pakistan’s intelligence services. The report said it could not rule out "the
possibility of some degree of connivance inside or outside the government". The report also voiced harsh
criticism of the Navy Seal raid on Abbottabad, describing it as an "American act of war" and Pakistan's
"greatest humiliation" since East Pakistan seceded in 1971. It quotes officials as saying that Pakistan air force
jets were scrambled to shoot down the US helicopters, but were too late. The 336-page document was the
result of interviews with more than 200 witnesses, including senior civilian and military officials, as well as with
Bin Laden's three widows prior to their deportation to Saudi Arabia. Javed Iqbal, the head of the Abbottabad
Commission, formed to establish whether the failures of the government were due to incompetence or
colluding with al-Qaeda, said that the report was based on “assumptions" and did not include even one out of
more than 100 recommendations made by the Commission.
15 Mayawati seeks ban on RSS, VHP
Jul Mayawati
Following the ban on caste-based rallies by the Allahabad High Court, Bahujan Samaj Party chief Mayawati
justified such gatherings organized by her party and instead demanded a ban on RSS, VHP and Bajrang Dal. She
said outfits like them which claim to be non-political, control the BJP in reality and design caste-based and
religion-based political strategies for the BJP besides finalizing its Prime-Ministerial candidate. She said that
they are a bigger threat to the nation.
21 China to invest $160 billion in Andhra Pradesh
Indo-China
Jul China is ready to invest about $160 billion in Andhra Pradesh in different sectors like food processing, smallscale industries, infrastructure and education, among others, and improve bilateral ties with India. However,
any timeframe or phases in which such a huge investment could materialize was not mentioned. Additionally,
China would send 10,000 students to Hyderabad for education in various streams.
GKCA Update
1st to 31st July
22 US vice-president Joe Biden on maiden visit to India to bolster ties
Jul Indo-US
In his first official visit to India after assuming office in 2009, US vice-president Joe Biden arrived on 2nd July
with his wife, Jill, on a four-day trip aimed at bolstering ties in key sectors of trade, energy, defence and
security. Biden will hold meetings with top Indian leadership, including President Pranab Mukherjee and Prime
Minister Manmohan Singh.
Science and Technology
04 Scientists Fabricate Rudimentary Human Livers
Jul Rudimentary Human Livers
Researchers in Japan have used human stem cells to create tiny human livers like those that arise early in fetal
life. When the scientists transplanted the rudimentary livers into mice, the little organs grew, made human
liver proteins, and metabolized drugs as human livers do. Although the scientists warned that this was very
basic research and the method would have to be scaled up enormously in order to treat a patient, it was a
major breakthrough in terms of its application in future medical treatment.
09 World’s first solar-powered family car developed
Jul Solar Family Car
Students from the Netherlands' Eindhoven University of Technology unveiled ‘Stella’, the world's first solarpowered family car with room for four people, a trunk, intuitive steering, that expands or contracts when you
are driving too fast or too slowly, and a range of 600km. The solar cells of 'Stella' generate more electricity on
average than the car uses and that means the surplus electricity can be returned to the power grid, thereby
making the car 'energy-positive'. The solar-powered cars manufactured to date are usually built for just one
person and ‘Stella’ comes as a welcome innovation.
12 NASA finds blue planet where it rains glass
Jul Astronomy
—
—
13 Scientists develop artificial heart from cow tissue
Jul Artificial Heart
Carmat, a company based in Paris, has designed an artificial heart fashioned in part from cow tissue. The
device, soon to be tested in patients with heart failure, is regulated by sensors, software and microelectronics.
And its power will come from two external, wearable lithium-ion batteries. Fifteen years in development, the
artificial heart has been approved for clinical trials at cardiac surgery centers in Belgium, Poland, Saudi Arabia
and Slovenia. Surfaces in the new heart that touch human blood are made from cow tissue instead of artificial
materials like plastic that can cause problems like clotting.
GKCA Update
1st to 31st July
Sports
22 Indian Badminton League (IBL) holds auction of players
Jul Indian Badminton League
The first-ever auction of players for the Indian Badminton League (IBL) saw success as the franchisees spent
$861,000 on 36 Indian players. Billed as the world’s richest badminton league, with $1 million as the prize
fund, the event is aimed at benefiting the home players as well as improving the popularity and conditions of
the sport in India. Each of the franchisees had a budget of about $2, 75,000 (Rs 1.6 crore) to buy 10 players for
their team. Men’s world number one player Lee Chong Wie was bought by Mumbai Masters, for $135,000
(over Rs 80 lakh). The most valued female player was Saina Nehwal, who was bought by Hyderabad Hotshots,
for $1, 20,000 (Rs 71 lakh). Other icon players included P.V. Sindhu who was sold to Awadh Warriors (Lucknow
Warriors) while P. Kashyap was bagged by Banga Beats. The Chinese, however, have stayed away from the
event. IBL will begin from August 14 and will be played across the six franchise cities till August 31.
World
01 Deadly wildfires ravage Arizona, 19 firefighters killed
Wildfire
Jul Arizona
A deadly wildfire in Arizona killed 19 firefighters and ravaged more than 8,000 acres of land. The fire spread
rapidly owing to the ravaging monsoon winds. Scientists say that an increasingly hot and dry West has become
the new normal and would result in more catastrophic fires. Since 1970, Arizona has warmed at a rate 0.72
degrees per decade, the fastest among the 50 states. The fire potential is exacerbated by the past policy,
beginning around 1900, of putting out all fires which are a natural way of clearing out the dry combustible
underbrush. Moreover, in the 1990s, more than 2.2 million housing units were added in these fire-prone areas,
suppressing natural fires, while allowing a buildup of combustible materials like the “slash” debris left behind
by logging.
12 Malala Yousafzai, Pakistani girl shot by Taliban, makes appeal at U.N.
Jul Malala Yousafzai
In a speech at the United Nations Youth Assembly in New York on her 16th birthday, Malala Yousafzai, who
was shot in the head by the Taliban for promoting education for girls in Pakistan, called on world leaders to
provide “free, compulsory education” for every child. She said that the terrorist attack on her and her
colleagues have been unable to silence them and have made them even stronger. Yousafzai has been an
outspoken critic of the Taliban since 2009 when Taliban militants attacked more than 800 schools as part of
their violent campaign against girls’ education in northwestern Pakistan.
14 Former watch volunteer George Zimmerman cleared of charges in the 2012
Martin killing
Jul Treyvon
Treyvon Martin Killing
Neighborhood watch volunteer George Zimmerman was cleared of all charges in the shooting of Trayvon
Martin, the black teenager, whose killing in February 2012 unleashed furious debate across the US over racial
profiling, self-defense and equal justice. The jury of six women acquitted Zimmerman on the basis that he had
shot Martin in self-defence. Previously in 2012 soon after the killing, protesters nationwide had lashed out
against the police as it took 44 days for Zimmerman to be arrested.
GKCA Update
1st to 31st July
Demonstrators upset with Zimmerman’s acquittal protested mostly peacefully throughout the US but some
protesters broke windows and vandalized a police squad car in Oakland during protests. Hundreds took to the
streets in New York to protest Zimmerman’s acquittal.
16 Snowden reveals Microsoft’s cooperation with NSA, seeks temporary
asylum in Russia
Jul US Secret Surveillance Programme
US secret surveillance programme whistleblower Edward Snowden has alleged that Microsoft cooperated with
the American National Security Agency (NSA) to intercept users' data, including helping the agency to crack
Microsoft's own encryption codes. It also said that the NSA had tapped into Skype customers worldwide.
Microsoft said that legal obligations forced it to provide the NSA access to its services. However, Microsoft
does not provide any government with blanket or direct access to SkyDrive, Outlook.com, Skype or any
Microsoft product.
Snowden has requested temporary asylum in Russia, until he is able to travel to Latin America, where three
countries have offered him political asylum. He had been holed up at the transit zone of Moscow's
Sheremetyevo airport since his arrival from Hong Kong on June 23.
18 Purported letter from Taliban tells Malala Yousafzai why she was targeted
Jul Malala Yousafzai
In a letter to Malala Yousafzai, a senior Taliban commander, Adnan Rashid, purportedly tells her that she was
targeted not because she advocated education for all girls, but rather for her provocative criticism of the
militant group. The letter was released just days after 16-year-old Malala delivered an emotional plea at the
United Nations for the right to go to school on behalf of all children. Malala was 15 when she was shot in the
head by Taliban militants on her way home from school in Pakistan on October 2012. Rashid said he was
writing to express shock and regret at the shooting. The letter went on to say that the Taliban supports the
education of women, as long as it adheres to Islamic law. He urged her, according to the letter, to return to
Pakistan and use her pen for Islam and the plight of the Muslim community.
19 Obama addresses nation in surprise speech on Trayvon Martin verdict
Jul Trayvon Martin Killing
While addressing the nation on the Trayvon Martin verdict, Barack Obama called Martin’s death a tragedy
saying that Martin could have been his son or could have been him 35 years ago. Though he didn’t explicitly
criticize the jury verdict, he understood the response to the verdict. He went on to say how the AfricanAmerican community was treated with mistrust and insecurity and also mentioned at one point that if a white
had been involved in the same kind of scenario, the outcome and the aftermath might have been different.
Obama gave some ideas such as reconsidering legislation like ‘stand your ground’ which encouraged the
confrontation as well as reducing mistrust in local law enforcement and racial profiling. Obama also urged
celebrities and authority figures to embrace and strengthen the community of young male African Americans.
Obama ended his speech on a hopeful note saying that, talking to his daughters, he sees that things are getting
better.
GKCA Update
1st to 31st July
19 Indian-American Nisha Biswal nominated as assistant-secretary of state for
Asia
Jul South
Indian Origin Asst. Secretary of State
President Barack Obama has nominated Nisha Desai Biswal, an accomplished Indian-American administrator,
to head the South Asia bureau, which oversees US foreign policy and relations with India, Pakistan,
Bangladesh, Afghanistan, Sri Lanka, Nepal, Maldives and Bhutan. Upon confirmation by the Senate, Desai will
become the first person of Indian or even South Asian origin to head the bureau.
22 Kate Middleton, wife of Prince William, gives birth to royal baby boy
Jul Royal Baby
Prince William's wife Kate Middleton gave birth to a baby boy, their first child who will be third in line to the
British throne. The birth was welcomed by well-wishers and media gathered outside St. Mary's Hospital in west
London, where William was born to the late Princess Diana in 1982. The news has been displayed on an easel
in the forecourt of Buckingham Palace in line with tradition.
23 Top US general outlines military options for Syria
Jul Syria Conflict
Top US military officer, Gen Martin Dempsey, has outlined the costs, risks and benefits of possible American
military involvement in the Syrian conflict. He has offered five military options, including limited strikes and
establishing a no-fly zone but said that using force in Syria would be similar to an act of war and could cost the
US billions of dollars. More than 90,000 people have been killed in Syria since the uprising again President
Assad began in 2011. Washington has so far ruled out military intervention in Syria but has delivered
humanitarian aid to Syrian refugees in neighbouring countries and provided non-lethal help to the Syrian
opposition.
25 56 killed and 70 injured as train derails in Spain
Jul Spain Train Disaster
At least 56 people were killed and 70 injured when a train derailed on the outskirts of the northern Spanish
city of Santiago de Compostela on 24th July. The train was driving at 192 kilometres per hour in a curve, where
the speed limit was 80 kilometres. The driver has been charged with professional recklessness.
29 Pope Francis says gays must not be judged or marginalized
Jul Pope On Gays
In a conversation with journalists, Pope Francis said that gays should not be judged or marginalized and should
be integrated into society, but he reaffirmed Church teaching that homosexual acts are a sin. The Pope also
said that he is no one to judge a priest for being gay. The Pope however said that lobbying by the gay
orientation is a problem as with Masonic lobbies, political lobbies or other such lobbies. Francis also said the
Roman Catholic Church's ban on women priests was definitive, although he would like them to have more
leadership roles in administration and pastoral activities.
31 Mamnoon Hussain wins Pakistan presidential election
Jul Pakistan
Agra-born Mamnoon Hussain, the ruling Pakistan Muslim League-Nawaz's nominee, won the country's
presidential election with a huge margin on Tuesday securing 432 votes against his rival's 77. Hussain, 73, will
take oath as the 12th president of Pakistan on August 9, a day after President Asif Ali Zardari's five-year term in
GKCA Update
1st to 31st July
office gets over. The main opposition, Pakistan Peoples' Party, and two other parties boycotted the polls saying
they haven’t been given enough time to campaign.
31 China indicts top politician Bo Xilai on corruption charges
Jul China
Bo Xilai, former member of the Communist Party of China’s powerful 25-member Politburo has been indicted
for bribery, corruption and abuse of power. Bo has been in detention since April 2012. Bo took advantage of
his position to secure other’s interests in return for money and properties. He also embezzled a huge amount
of public money harming the interests of the state and the party. Bo was credited with a spectacular
crackdown on organized crime as well as his economic policies on social housing. However, allegations of
murder against his wife in April last year led to further unravelling of his own political misdeeds.
Bo’s wife Gu Kailai had been convicted and had received a suspended death sentence for the murder of British
businessman Neil Heywood, in November 2011.
GKCA Update
1st to 31st Aug
Starred Articles
01 FDI limit increased in Print media, telecom, defence and retail
Aug Economy > FDI
The Indian Newspaper Society (INS) passed the FDI limit in Print media to increase from 26 per cent to 49 per
cent in order to sustain the growth in the print media business through an inflow of funds.
The government has also raised the cap on foreign direct investments to 100% in telecom and more than 26%
on a case-to-case basis in defense, and allowed FDI up to 49% under automatic route in nine sectors including
single-brand retail, state-run oil refineries, commodities, power exchanges, stock exchanges and clearing
corporations. India has also eased key rules on foreign direct investment in multi-brand retail.
04 Durga supported by Muslim clergy; UP government lashed for using
communal shield
Aug India > Sand Mafia
Durga Shakti Nagpal, an IAS officer has been suspended by the UP government for demolishing an underconstruction mosque's wall. She oversaw a massive operation to stop sand mining in Noida, Faridabad and
used surprise and secrecy to arrest illegal miners. The sand mining was illegal as no environment impact
assessment (EIA) was carried out and thus responsible for soil-erosion and changing the natural flow of the
Yamuna and Hindon rivers. The Akhilesh Yadav government has been highly criticized for its decision. Several
Muslim clerics have lashed out at the government for suspending the officer and giving a communal colour to
its political decision.
04 Jet-Etihad deal likely to get approval from SEBI and CCI
Aug Corporate > Jet-Etihad Deal
The Jet-Etihad deal is likely to get approvals from market regulator SEBI (Securities and Exchange Board of
India) and the CCI (Competition Commission of India). Jet and Etihad have agreed to change their shareholder
agreement to address the control-related and other concerns raised by SEBI and CCI. As per the changes, the
direct and indirect control of the airline would remain with Naresh Goyal, while Etihad would not get any
excess power beyond its 24 per cent stake. The deal was approved by the Foreign Investment and Promotion
Board (FIPB) last month and referred to the Cabinet Committee on Economic Affairs (CCEA) for clearance,
where it is still pending.
06 Washington Post sold to billionaire Amazon founder Jeff Bezos for $250
Million.
Aug World > Washington Post
The Washington Post has been sold to Amazon founder Jeff Bezos for $250 Million. It came as a surprise for
the employees of the Post. The Washington Post Company's newspaper division, of which the Washington Post
newspaper is the flagship title, has suffered a 44 per cent decline in revenues over the past six years. The sale
comprises the newspaper, its website and a handful of other newspapers and printing operations. It does not
include its potentially lucrative headquarters in downtown Washington.
GKCA Update
1st to 31st Aug
07 Pakistan army, terrorists kill 5 soldiers in LoC attack putting peace talks in
jeopardy.
Aug India > Pakistan
Five Indian soldiers were killed in a surprise attack by heavily armed group of Pakistani soldiers along the LoC in
the Poonch sector of Jammu &Kashmir. This event and the resultant anger in the Parliament dulled out the
chance of composite dialogue with Pakistan which was scheduled in a few weeks over the Wullar Barrage.
Defence Minister A K Antony said that the attack was carried out by 20 heavily-armed terrorists in Pakistani
Army uniform and added that the Indian Army was fully prepared to take all necessary steps to uphold the
sanctity of LoC.
09 Communal clashes break out in Kishtwar, Jammu; 3 dead and several others
injured
Aug India > Jammu Clashes
3 people were killed and more than 60 injured in communal clashes on 9th August, in Kishtwar town in Jammu.
The violence reportedly erupted after Hindus objected to Muslims chanting anti-India slogans after EID prayers
and threw stones at them. Several shops, two hotels and a gas station were set on fire as Hindus and Muslims
attacked each other with firearms, stones and sticks. The army has been called out and curfew has been
imposed over nine towns throughout Jammu and Kashmir.
Meanwhile, senior BJP leader Arun Jaitley was detained at Jammu airport and barred from visiting Kishtwar.
Jaitley called it undemocratic and unconstitutional and said that the J & K government wanted to hide the
truth. J & K’s minister of state for home Sajjad Ahmed Kichloo resigned after allegations of allegedly inciting
violence surfaced against him.
11 Bolt regains world 100 metres crown in Moscow
> Usain Bolt
Aug Sports
Jamaican sprinter Usain Bolt reclaimed his world 100 m title by winning Gold in the IAAF World Championships
held in Moscow, Russia. Bolt completed the run in only 9.77 seconds, the season’s best, with American Justin
Gatlin claiming silver in 9.85sec and Nesta Carter, also of Jamaica, taking bronze in 9.95sec.
12 India launches indigenous aircraft career INS Vikrant
Aug India > INS Vikrant
India launched its first indigenous aircraft carrier INS Vikrant on Monday, 12th August. The 40,000 tonne
carrier is the biggest warship to be built by India and will also mark its entry into a select club of countries
capable of designing and building a carrier of this size. India is now only the fifth county in the world, after the
US, the UK, Russia and France, to build a ship of this size. INS Vikrant is supposed to give India a huge
advantage over China that is still far behind on experience in aircraft carriers. However, Vikrant will not be
ready to go to war before 2020.
12 Government to hike import duties as part of strategy to bolster rupee
Aug Economy > Rupee
In an attempt to bolster the weak rupee, the Government has decided on a multi-pronged strategy to increase
inflow of dollars and check outflows. The measures include a planned increase in import duty on several high
import goods like gold and silver, allowing three public sector financial institutions to raise dollar funds
through bonds and making NRI deposits more attractive and easing foreign loan norms. These steps together
are expected to bridge the forex gap by $ 18 billion and contain the CAD at 3.7% of the gross domestic
GKCA Update
1st to 31st Aug
product, lower than last year’s 4.8. CAD has been blamed as the key factor behind the sharp volatility of the
rupee against the US dollar.
17 LeT’s top bomb maker, Abdul Karim Tunda, arrested
Aug India > Abdul Karim Tunda
Abdul Karim Tunda, one of India's 20 most wanted terrorists, has been arrested by the Special Cell of Delhi
Police from the Indo-Nepal border. The Lashkar-e-Taiba chief bomb maker has been arrested with a Pakistani
passport issued in January this year.
Tunda, around 70 years old and wanted in 21 cases, is accused of masterminding over 40 bomb blasts
throughout India. He was involved in the 1993 Mumbai serial blasts case and had planned to carry out
bombings during the Commonwealth games in 2010 which was thwarted. Tunda had been trained by the ISI
and was a close aide of Lashkar chief Zaki-ur-Rehman Lakhvi and is thus expected to reveal critical information
about LeT’s pan-India operations and other terror plots.
18 Situation worsens in Egypt as death toll nears 1000
Aug World > Egypt
Deaths of 36 detainees and 25 policemen
The deaths of 36 detainees and 25 policemen have taken the death toll in Egypt to nearly 1,000. The Egyptian
government has acknowledged that its security forces had killed 36 Islamists in its custody on August 18.
Though Egyptian authorities said the deaths were the consequence of an escape attempt, the Muslim
Brotherhood called them “assassinations,” and said that the victims, which it said numbered 52, had been shot
and tear-gassed through the windows of a locked prison van. In a deadly response in Egypt’s northern Sinai
Peninsula, suspected militants forced two minibuses carrying 25 off-duty policemen to stop, ordered the
policemen out and forced them to lie on the ground before they shot them to death.
General Abdel-Fatah el-Sissi vowed that the military would stand firm in the face of the rising violence but also
called for the inclusion of Islamists in the post-Morsi political process.
In a latest development, the Egyptian army has arrested the spiritual leader of the Muslim Brotherhood,
Mohamed Badie.
Hosni Mubarak to be released soon
Hosni Mubarak, the former Egyptian president overthrown in an uprising in 2011, will be released from jail
soon after a prosecutor cleared him in a corruption case.
Stand taken by foreign governments
United States officials said they had taken preliminary steps to withhold financial aid to the Egyptian
government, though not crucial military aid, and the European Union announced Sunday that it would
“urgently review” its relations with the country. But the Egyptian military retains the support of the oil-rich
states of the Persian Gulf, especially Saudi Arabia and the United Arab Emirates, which have pledged billions in
aid to the new government.
19 28 pilgrims trapped in tracks mowed down by Train in Bihar
Aug India > Bihar Train Tragedy
28 people were crushed to death by a speeding train at Dhamara Ghat station in Bihar’s Khagaria district. Six
injured people are being treated in a hospital. The station is a crammed facility with a three-line track, having
no platform. A group of pilgrims returning from a nearby shrine was walking on the middle track. Two trains
stood on tracks on either side. The Rajyarani Express had received the clearance to pass through the station.
GKCA Update
1st to 31st Aug
Running at a speed of 80 km, it mowed down 80 people before coming to a halt. Angry locals beat up the two
drivers of the train and set two other trains on fire in protest against the accident.
20 Rupee slides at an all-time low of Rs. 64 to the dollar, RBI moves to capital
Aug controls
Economy > Rupee
The rupee slid below the 64-mark for the first time ever, touching 64.13 to the dollar on 20th August, before
closing at 63.13. The British Pound also crossed the 100-mark, plunging to an all-time low of 100.35 before
closing at 99.03. The Pound is the most expensive major foreign currency in the world against the rupee. The
RBI put restrictions on the amount of foreign exchange Indian companies and individuals can invest, remit or
spend overseas in an attempt to curb dollar outflows from the country and defend the rupee. Indian
companies can now send out only 100% of their net worth as overseas direct investment (ODI), way below the
current cap of 400%, under the automatic route. The RBI has also said that it will inject 80bn rupees ($1.3bn;
£806m) into the country's banking system by buying long-term government bonds.
22 Photojournalist gang raped in Mumbai, 5 arrested
Aug India > Shakti Mills Gang Rape Case
Three among a group of five men raped a 22-year-old photographer, interning for a lifestyle magazine, after
bashing up her male colleague at the abandoned Shakti Mills close to the railway tracks in the Mahalaxmi area
of Mumbai on the evening of 22nd August. The incident happened when the girl and her colleague were
shooting pictures at the mill for a magazine assignment. A 12-year old boy, who knew the suspects by face,
gave critical information to the police which ultimately helped them in nabbing all five. The incident has been
condemned throughout the country and people have called for stricter actions by the government.
26 Alleged chemical attack in Syria kills hundreds, West ready to launch strikes
Aug against Syria
World > Syria
On August 21, Syria's opposition accused government forces of killing more than 300 people by firing rockets
that released deadly fumes over rebel-held Damascus suburbs. If confirmed, it would be the worst chemical
weapons attack in 25 years.
The US has claimed that there was an undeniable proof of a chemical attack by President Bashar al Assad’s
forces. The Syrian government has rejected these claims as baseless. The US, Britain and France have
demanded that UN experts investigate the claims.
Snipers shot at a UN team set to inspect the site of the suspected chemical attack on Monday, 26th August.
The attack forced them to suspend their inspection but no injuries were reported. The incident ratcheted up
tensions further as the West warned of possible military action against Syria. Syria’s key ally Russia and also
China and Iran have warned that any strike by the US and its allies would have dangerous consequences for
the entire region. The US has said that its military is ready to launch strikes should President Barack Obama
order an attack.
26 Lok Sabha passes Food Security Bill
Aug India > Food Security Bill
The Lok Sabha passed the Food Security Bill on Monday, 26th August, barely eight months ahead of the 2014
Lok Sabha election. The Food Security Bill took longer time than expected to pass in the Lok Sabha as the
GKCA Update
1st to 31st Aug
opposition parties insisted on a vote of amendments such as further reducing the rack rates for cheap
foodgrain and making the law’s coverage universal.
Provisions and implications:
i)
ii)
iii)
iv)
v)
5 kg per person, per month of rice, wheat or coarse grain.
Proposes to cover 67 % of India’s population or 82 crore people, 75 % rural and 50% urban.
Rs. 3 for rice, Rs. 2 for wheat and Rs. 1 for bajra, jowar.
Cost of scheme approx. Rs. 1.3 lakh crore, up from current subsidy bill of Rs. 75,000 crore in 2012-13.
States to get 1 year to rollout scheme
28 Rupee hits historic low of 68.82 against dollar, gold prices reach record high
of Rs. 34,500
Aug Economy > Rupee
The rupee slumped past the 68 per dollar mark on Wednesday, 28th August, hitting a record low of 68.82, as
concerns weighed heavily in the financial markets on the expected increase in government's subsidy burden
following the passage of the Food Security Bill in the Lok Sabha and uncertainty over a possible US led military
strike against Syria.
Gold prices reached a record high of Rs. 34,500 per ten gram with a biggest ever single day surge of Rs. 2,500
in opening trade in bullion market on Wednesday, 28th August. The current upsurge surpassed its record price
of Rs. 32,975 per ten gram, set on November 27 last year. Gold demand increased as the rupee touched record
low and equities tumbled leaving investors with no option but to park their funds in gold as a safe- haven.
29 Yasin Bhatkal, founder of Indian Mujahideen, arrested
Aug India > Yasin Bhatkal Arrest
Yasin Bhatkal, the Indian Mujahideen mastermind and a key suspect in several terror blasts since 2008, has
been arrested at the India-Nepal border in Bihar in a joint operation by the central intelligence agencies and
the Bihar Police. It is seen as a major breakthrough in the agencies' protracted efforts to destroy the Indian
Mujahideen, the Lashker-e-Taiba-backed indigenous jihadi outfit behind the Mumbai, Delhi, Hyderabad,
Bangalore, Ahmedabad, Pune and Jaipur blasts. Another IM operative, Asadullah Akhtar alias Haddi, is
reported to have been detained along with him.
30 India's first defence satellite GSAT-7 launched successfully
Aug Science and Technology > Indian Defence Satellite
India's maiden dedicated defence satellite, the advanced multi-band, state-of-the-art GSAT-7 was successfully
launched into space by European space consortium Arianespace from Kourou spaceport in South America on
August 30. The 2625-kg satellite would help marine communications with coverage over India landmass as well
as surrounding areas, seen as a significant asset from security and surveillance points of view. Custom-made
for the Navy by the Indian Space Research Organisation (ISRO), the GSAT-7 gives a boost to Navy's
modernisation push to improve space-based communications and intelligence gathering.
GKCA Update
1st to 31st Aug
Corporate
08 IBM and STMicroelectronics look to invest Rs. 50,000 cr in chip-making in
India
Aug IBM and STMicroelectronics
Two of the largest global chipmakers, IBM and STMicroelectronics, are in advanced stages of talks with the
government for an investment of over Rs. 50,000 crore. Through the investment, the government is hoping to
get valuable foreign exchange as well as go for import substitution. The location for the facility has not yet
been finalized. Although India is an important centre for chip design and verification, production is nonexistent as of now.
09 Apple wins key patent case against Samsung
Aug Apple and Samsung
Apple has won a key patent case against rival Samsung at the US International Trade Commission (US ITC). The
ruling upheld that Samsung had infringed two of Apple’s patents in the production of mobile phones, media
players and tablets. The first is the so-called "Steve Jobs patent", named after the company's founder, which
involves touch-screen technology. The other patent is related to the audio socket on devices. Samsung devices
affected by the ruling are banned from the US. However, the ban is on hold till the US President reviews the US
ITC’s findings within 60 days.
11 SBI appoints Arundhati Bhattacharya as new CFO
Aug SBI
The SBI has appointed Arundhati Bhattacharya as the new CFO and DM, and has promoted seven of its CGMs
as deputy MDs. This is the second time in a month when the SBI has shuffled its top and middle-level
management. The bank will have a new chairman by September end, unless the government gives an
extension to incumbent Pratip Chaudhuri.
19 Diageo CEO Ivan Menezes to get upto Rs. 105-cr pay package
Aug Diageo
The world's largest spirits maker Diageo Plc has proposed an annual pay package of up to 10.9 million British
pound (about Rs 105 crore) for its newly appointed, Indian-origin, CEO Ivan Menezes. 53-year-old Menezes,
had studied at St Stephen's College and IIM-Ahmedabad besides Kellogg School of Management in the US.
Prior to joining Diageo, Menezes held senior positions with companies like Nestle, Booz Allen Hamilton and
Whirlpool. Diageo, which owns brands like Johnnie Walker, Smirnoff, Baileys and Guinness, recently acquired a
significant stake in India's leading liquor firm United Spirits from Vijay Mallya-led UB group in a deal worth over
USD 2 billion and Menezes is said to have been instrumental in the deal.
26 Micromax, Karbonn beat Samsung, Apple in India
Aug Mobile Companies
Rising demand for affordable smartphones in the emerging markets of India and China have helped local
mobile manufacturers surpass shipments by established global brands like Apple and Samsung in April-June
quarter this year. In the Asia-Pacific region, excluding Japan, Local vendors have shipped 46 million units as
compared to 35 million units shipped by Samsung and Apple. Research firm IDC identified Micromax, Karbonn,
Lava, Maxx and Intex as the rising players in the emerging smartphone market in India and brands like
Coolpad, K-Touch, Xiaomi, Gionee and Oppo in China. The homegrown players comprised 38% of second
GKCA Update
1st to 31st Aug
quarter 2013 volumes, up from 20% in the same quarter of 2012 and 7% in 2011 second quarter. Local players
have aggressively scaled up their operations and are competitive on both price and hardware specifications
which must have added to their demand.
27 Yahoo beats Google in US web traffic, buys image search startup IQ Engines
Aug Yahoo
Yahoo has topped the comScore's monthly US web rankings in terms of 196.5 million unique U.S. visitors for
the month of July, beating out long-time rival Google which had 192 unique visitors for July. The figures
exclude Yahoo's newly acquired Tumblr blog sites. The data also showed that Yahoo! sites were seen by 87% of
the 225 million American internet users in July. Meanwhile, Google continues to dominate in search engine
with 67% of that market captured in June. Microsoft's search engine, Bing, was ranked second with 17% of
search engine traffic in the U.S and Yahoo! came in third with 12% search engine users in U.S.
Yahoo has bought image search specialty startup IQ Engines to add the company's technology to its Flickr
photo service. IQ Engines is known for software that analyzes, sorts, and categorizes images using techniques
including facial recognition. Yahoo has been on a buying spree since Mayer became chief last year with a
mission to revive its internet presence.
29 Wipro bags $100 million deal from US company
Aug Wipro
Software services provider Wipro has won a $100 million (Rs 680 crore) technology outsourcing contract from
a United States-based healthcare services company. The contract, spread over five years, will require the
Bangalore-based company to provide infrastructure management including consolidating the client's multiple
data centres. In June, Wipro had won another large contract, valued at around $500 million (Rs 3,400 crore)
from Citigroup as well as another $100 million contract from a healthcare services provider during the AprilJune quarter. Although the company has been lagging the industry for nearly two quarters, it has given a
robust growth forecast for the July-September period.
30 Exit of senior management at Infosys a cause of concern
Aug Infosys
Three top level exits in Infosys in the past 50 days has been a cause of concern for investors and has cast
doubts on the company’s revenue growth and turnaround plans. Ever since Narayana Murthy’s comeback,
reorganization of portfolios might have resulted in the resignation of key executives. The latest to resign was
Ashok Vemuri, head of Infosys' North American operations and a member of its board. Vemuri has joined iGate
as its new CEO. Vemuri was regarded as a potential future CEO of Infosys and his resignation comes as a
setback to Infosys, which has already been struggling to achieve management stability. Sudhir Chaturvedi,
former head of banking and financial services in the US and Basab Pradhan, ex-global head, sales and
marketing were the two top executives, who resigned prior to Vemuri.
Economy
01 Goldman Sachs downgrades Indian economy, says market is 'underweight'
Sachs
Aug Goldman
US multinational investment banking firm Goldman Sachs has downgraded its rating on Indian markets, on
concerns of sluggish economic growth recovery. The external funding environment has caused the RBI to
tighten liquidity. According to Goldman, earnings would grow at 5 per cent this year and 11 per cent next year
GKCA Update
1st to 31st Aug
which are still below their expectations. It expects the dollar/rupee to remain at 60 for the year but expects
continued weakness to 65 through 2016.
01 HDFC Bank, Axis Bank raise fixed deposit rates by upto 4%, others may
follow suit.
Aug Fixed Deposit Rates
Axis Bank has raised interest rate on term deposits with maturity between 14-29 days by 4 per cent to 8 per
cent, while in case of 7-14 days the increase is by 3.5 per cent to 7.5 per cent on bulk deposits above Rs 1
crore. The fixed deposit rates of India's second largest private sector lender HDFC have also been raised by 1
per cent for maturities between 15 days to 6 months one day effective July 2. Yes Bank has also raised its rates
by 0.5%. Other private sector banks are also likely to follow suit. Due to the rupee depreciation, RBI has taken
slew of measures resulting in the tight liquidity situation for the banks.
06 RBI to issue subsidiary norms for MNC banks soon
Aug RBI
The RBI may soon issue the final guidelines on subsidiarisation of foreign banks. In the draft guidelines issued
in 2011, it was proposed to make it mandatory for foreign banks entering India to set up their local units as
wholly-owned subsidiaries. This was the reason behind the MNC banks going slow on conversion to avoid huge
tax liabilities. RBI has said that the final decision of the subsidiary model is delayed because of some taxation
and legal issues.
India
03 India's new state Telangana brings more demands for smaller states from
across the country
Aug Telangana
Demands for smaller states have surfaced from all over the country following the creation of Telangana. The
Jammu State Morcha (JSM) said that it would revive its campaign seeking statehood for Jammu. Amongst the
other prominent demands for statehood is Bodoland, a part from Assam, and Gorkhaland being demanded by
the Gorkha Janmukti Morcha to be created from West Bengal. India may have at least 50 states in future if all
demands for new states are to be conceded as the home ministry has received representations for creation of
more than 20 states.
04 FICCI says govt should increase expenditure on R&D
Aug FICCI
FICCI has said that the government should increase expenditure on research and development activities and
also create an aggressive policy environment for boosting private sector investment. India’s investment in
private sector R & D is less than 25 percent of overall spend. FICCI has also suggested the introduction of
legislation allowing private scientists to file patents, create new enterprises and share financial returns of their
inventions. It also suggested the government should facilitate exchange program between researchers and
public to create better synergy in public-private. Such a strategy would raise the country's overall spend on
scientific and technological R&D from the current level of 0.98 percent of GDP.
GKCA Update
1st to 31st Aug
07 Raghuram Rajan appointed as next RBI Governor, youngest to hold post
Aug RBI
Chief Economic Adviser Raghuram Rajan has been appointed as the new Governor of the Reserve Bank of India
for a term of three years. He is preceded by D. Subbarao who will leave office on September 4. Previously,
Rajan was the chief Economist of the International Monetary Fund and at age 50, he is the youngest to hold
the post of the RBI Governor. Rajan’s primary challenges would be managing high consumer price inflation,
industrial slowdown, a free fall of the rupee and a widening Current Account Deficit (CAD).
Raghuram Rajam is a gold medallist from both IIT-Delhi (Electrical Engineering) and IIM-Ahmedabad. He has
done his Phd from Massachusetts Institute of Technology (MIT) and taught at the University of Chicago.
07 Micromax promoter Rajesh Agarwal arrested on charges of bribery
Aug Corruption
Micromax co-owner and promoter Rajesh Agarwal and another senior executive of the company named
Manish Tuli have been arrested by the CBI for allegedly bribing four engineers of North Delhi Municipal
Corporation and DDA to obtain clearance for making a banquet hall in Wazirpur. The engineers involved in the
case and a middleman have also been interested. Agarwal has stepped down as the managing director of the
company.
08 Tough new rules proposed for $ 2.3 billion surrogacy industry
Aug Surrogacy
The Directorate General of Health Services (DGHS) has proposed that the option of surrogacy should be
available only to married, infertile couples of Indian origin. The proposal rules out surrogacy options for
foreigners, unless they are married to a person of Indian origin. The suggestions also say that a woman may
become a surrogate mother only once in her lifetime. The DGHS is an arm of the health ministry, which is
engaged in a tussle with the Planning Commission on NGO consultations over a law to regulate the “infertility”
industry, which is a $ 2.3 billion industry in India.
Foreigners make up 40 percent of the clientele, and are inevitably those who pay the most. It is estimated that
approximately 2,000 babies are born every year in India through commercial surrogacy.
14 UGC gives go-ahead to students to pursue two degree courses
simultaneously
Aug UGC
Giving in to long-standing demands from students and universities, the University Grants Commission has
given the go-ahead to students to pursue two degree programmes simultaneously. A student pursuing a
regular degree will also be allowed to pursue an additional certificate/diploma/advanced diploma/PG diploma
programme simultaneously either in regular or open/distance mode from the same university or another
institution.
15 Eighteen feared dead in Indian Submarine explosion
Aug INS Sindhurakshak
Eighteen sailors, including three officers, were feared dead when multiple explosions ripped through the
torpedo compartment of one of India’s mainstay kilo-class submarines, INS Sindhurakshak. The submarine
was parked in the Mumbai Naval Dockyard and the explosions caused water to enter the vessel and result in
GKCA Update
1st to 31st Aug
its sinking. The navy plans to begin salvage operations after the rescue operation is completed. Seven bodies
have been recovered till now.
19 13 crucial files for the ongoing enquiry into allocation of coal blocks missing
Aug Coalgate
Around 13 crucial files for the ongoing enquiry into the allocation process of captive coal blocks between 1993
and 2004 are missing from its domain. Among the 13 are two key files of 1990 and 1993 related to the
Screening Committee meetings, which the CBI is pursuing with the ministry. Coal Minister, Sriprakash Jaiswal’s
admission on the missing files is bound to lend further credence to the CBI’s contention that it has not been
getting the needed cooperation from the coal ministry. Earlier, Ashwani Kumar, who held the law portfolio,
had to resign in the wake of revelations that he had vetted the draft probe report of the CBI regarding the coal
block allocations.
20 Activist Narendra Dabholkar, who fought superstition, shot dead
Aug Narendra Dabholkar Shooting
Activist Narendra Dabholkar, who was running a successful anti-superstition movement in Maharashtra, was
shot dead by unidentified assailants in Pune on the morning of 20th August. The activist was campaigning to
persuade the state government to pass an anti-superstition and black magic bill. But the bill was opposed by
hardline Hindu groups as it hurt their religious sentiments. He headed the Andhashraddha Nirmoolan Samiti
(committee for eradication of blind faith). Dabholkar had authored several books and was the editor of
progressive magazine Sadhana.
22 Self-styled Godman, Asaram Bapu, booked for raping minor
Aug Asaram Bapu
Self-styled spiritual guru Asaram Bapu has been booked for sexual assault on a 16-year-old inmate at an
ashram in Jodhpur run by his trust. The girl, who hails from Shahjahanpur in Uttar Pradesh, has alleged in her
complaint that she was molested by the godman in his ashram on the pretext of a special ritual for the
betterment of her health. Asaram Bapu, who has a large following, was earlier in the news after the Gujarat
police filed a case of attempted murder against him and two others. He was also accused of illegally acquiring
land in Gujarat and Madhya Pradesh. He also attracted much attention for his remark that the victim of the
2012 Delhi bus gang-rape case could have escaped rape if she had called her attackers brothers, and pleaded
to be let off.
22 CBI to investigate Leave Travel Concession (LTC) racket, 9 Rajya Sabha
found to submit inflated bills
Aug members
LTC Racket
The Central Vigilance Commission (CVC) has asked the CBI to investigate a widespread racket in claims of leave
travel concession (LTC) involving central government and public sector employees as well as travel agents.
Large sums are said to have been siphoned out of the government by producing fake Air India tickets and
boarding passes (the only airline that government and PSU employees are allowed to use for LTC). Most of
them claimed to have travelled with their family to the Northeast, Kerala and the Andamans. Employees are
claiming LTC by providing forged boarding passes and e-tickets of domestic travel and undertaking foreign
trips, which this facility doesn't allow. In some cases, it is possible that the MPs are not aware of their bills
being forgeries and have been victims of a travel agent racket. At least nine Rajya Sabha members have been
found to have submitted inflated flight tickets till now.
GKCA Update
1st to 31st Aug
29 India developing e-bombs to paralyze enemy networks
Aug E-Bombs
The Defence Research and Development Organisation (DRDO) is developing an E-bomb which will emit
electromagnetic shock waves that destroy electronic circuits and communication networks of enemy forces.
The bomb will destroy radars, information gathering sensors, controls and other electronic equipment. The
GPS – guided E-bomb would give an option to the military as the bomb can target the enemy's mobile targets,
air defence systems, mobile or static radars, naval vessels with communication systems and even ill-shielded
communication or electronic systems at a military base.
Others
19 13-year-old son of a farmer cracks IIT
Aug IIT
Satyam, the 13-year-old son of a farmer in Bihar, is the youngest to crack the IIT entrance exam. He now
aspires to be an IAS officer. He secured an all India rank of 679 out of 1,50,000 who had taken the IIT-JEE exam.
He was home-schooled till standard 8 as his family didn't have the necessary financial means to send him to a
school and the government institution in his village lacked basic teaching facilities. The CBSE granted him
special permission to take the Rajasthan Board Exam. After completing B-Tech in computer science from IIT,
Satyam wants to launch a social media platform and then take the UPSC exam to become an IAS officer.
Politics & Government
11 Modi launches BJP election campaign in Hyderabad, draws strong crowd
Aug Narendra Modi
Narendra Modi addressed a mega youth rally on 11th August, Sunday in Hyderabad to kickstart BJP’s election
campaign in the South. Modi appealed to all to rid the country of the Congress at the Centre. He made a
specific appeal to Telugu Desam Party (TDP), mentioning NTR's efforts for formation of a non-Congress
government at the Centre. Modi also praised the governance model of Tamil Nadu Chief Minister J. Jayalalitha
of AIADMK in whom the NDA sees a possible ally. Modi said that there were celebrations when the BJP created
new states. But the Congress had created rifts between Telangana & Seemandhra. At the end, Modi made the
crowd chant 'yes we can' and ‘yes we will do’ and mentioned that the only vision of a government at the
Centre should be 'India first'.
Modi has been invited by British MP and chairman of ‘Labour Friends of India’, Barry Gardiner, to visit the
House of Commons and deliver a lecture on ‘The Future of Modern India’. The invitation ends UK’s decadelong boycott of Modi after the 2002 Gujarat riots.
11 Subramaniam Swamy merges Janata Party with BJP
Aug BJP
Subramaniam Swamy, the president of Janata Party announced the merger of his party with the BJP. Mr.
Swamy said his decision was borne by need for unity for nation building. The Janata Party was formed in the
aftermath of the Emergency. The BJP top brass welcomed him saying that his decision to merge would be a
benefitting factor. An economist, Mr. Swamy has been a member of both Houses of Parliament and served as a
Cabinet Minister and Planning Commission member.
GKCA Update
1st to 31st Aug
12 Centre moves Supreme Court against its order on criminal MPs and MLAs
Aug Criminal MPs and MLAs
Backed by all political parties, the Centre has moved the Supreme Court (SC), seeking a review by a five-judge
constitution bench of its ruling directing the immediate disqualification of MPs and MLAs on being sentenced
to more than two years in a criminal case. The two-judge SC bench had given the verdict against criminal
politicians on July 10. The government had earlier planned to amend the Constitution to nullify the SC’s
verdict. The parliamentary affairs ministry said that disqualification of MPs and MLAs upon conviction was not
open for reconsideration by a two-judge bench as a five-judge bench had in 2005 decided the issue in favor of
politicians.
Science and Technology
09 Researchers develop robot-arm capable of removing blood clots
Aug Robotics
Researchers from Vanderbilt University have designed a robot-arm system that reaches deep into the brain to
remove fatal clots using steerable needles. The steerable needles are about the size of those used for biopsies
to penetrate the brain with minimal damage and suction away the blood clot that has formed. The robot which
has shown a 92 percent success rate in removing simulated blood clots would help in saving more patients
from intracerebral hemorrhages.
22 India is world’s third largest internet using nation
Aug Internet
Research firm ComScore has said that India with 73.9 million internet users is the world's third largest Internet
population, overtaking Japan but behind China and the US. Consumers are increasingly becoming digital media
savvy and staying up to date on email, news, and social media. Riding on a 31 percent year-on-year increase,
India’s online population has reached 73.9 million, and can be a great market for online businesses. India
overtook Japan by adding 17.6 million users in 2012. Of the total 644 million home and work internet users in
Asia-Pacific as of March 2013, China accounted for a lion’s share of 54 per cent followed by India (11.5 per
cent), Japan (11.4 per cent), Southeast Asia (9.6 per cent) and rest of APAC (13.5 per cent).
World
01 Harvard Scientists develop device to send signals from human brain to rat's
brain
Aug Harvard
Neuroscientist Seung-Schik Yoo and colleagues at Harvard have found a way by which signals from the brain of
a human can be sent to the brain of a rat. First, they put an EEG device on a human that measures the brain's
electric signals through the skull. When the humans wanted to signal "move your tail" to the rat, they would
look at the monitor and their brains would send the signal. The EEG picked up the signal, and then a computer
translated it into a command sent to the rat's brain via Focussed UltraSound (FUS). This is an example of how
brain-to-brain interface might work.
01 Musharraf to be indicted in Benazir Bhutto killing
Aug Pakistan
GKCA Update
1st to 31st Aug
Pakistan’s former president Pervez Musharraf is expected to be indicted next week in connection with the
death of Pakistan’s first female Prime Minister Benazir Bhutto. Musharraf will be charged with his alleged
failure and negligence to provide adequate security for Bhutto. Bhutto was assassinated in a gun-suicide attack
in December 2007 after she came back to Pakistan to participate in the 2008 elections. Musharraf was
President at the time.
05 Scientists create world's first lab-grown burger
Aug Synthetic Burger
Scientists from Maastricht University have created the world's first synthetic lab-grown burger which was
tasted at London recently. Developing and producing the burger cost $325,000. Muscle stem cells painlessly
harvested from two cows raised on organic farms were used to make the cultured beef. It was tasted by two
volunteer food experts. The new technology could be a sustainable way of meeting the world's growing
appetite for meat.
08 Despite law, Irish hospital says no to abortions
Aug Ireland
The Mater Hospital in Dublin, Ireland, which is among the 25 institutions named in the recently passed
‘Protection of Life during Pregnancy’ Act to carry out legal abortions, has refused to do so citing its Christian
values and ideals.
Background:
The law was passed after Indian dentist Savita Halappanavar died in hospital in Galway in 2012 after being
denied a termination. An inquest was told that Savita was denied abortion twice because Ireland "is a catholic
country."
19 Partner of Guardian journalist, Glenn Greenwald, who wrote Snowden’s
detained by UK authorities for 9 hours
Aug revelation,
Snowden Revelations
David Miranda, the partner of Guardian journalist, Glenn Greenwald, was detained for questioning at London's
Heathrow airport on his way home to Rio de Janeiro. Greenwald had written a series of stories on revelations
by Edward Snowden on the US secret surveillance programmes. Miranda had gone to Berlin to visit Laura
Poitras, the US film-maker who has been working on the Snowden files with Greenwald and the Guardian.
Miranda was questioned under the Terrorism Act 2000 and was held for the full nine hours, the maximum the
law allows before officers must release or formally arrest the individual. Officials confiscated his mobile phone,
laptop, camera, memory sticks, DVDs and games consoles. Greenwald has called it a profound attack on press
freedom and a failed attempt at intimidating them. Journalists and an independent reviewer have said that the
police and the UK government must explain their action. Brazil has also reacted strongly to the incident.
20 Musharraf indicted in Benazir Bhutto Murder
Aug Pakistan
Former Pakistan President Pervez Musharraf was on Tuesday, 20th August, formally indicted for the murder of
Benazir Bhutto during an election rally after her return from exile in December 2007. Musharraf, two senior
police officers and four suspected militants were indicted on charges of murder, criminal conspiracy to murder
GKCA Update
1st to 31st Aug
and facilitation of murder. The anti-terrorism court’s decision to indict Musharraf could upset the all-powerful
army and trigger an angry reaction.
28 Bombs kill 86 in Baghdad as sectarian violence spreads
Aug Iraq
A series of car bombings and other attacks across Baghdad killed 86 people and wounded 263, extending the
worst wave of sectarian bloodshed in Iraq for at least five years. Sunni Muslim insurgents including the al
Qaeda-affiliated Islamic State of Iraq have significantly stepped up bombings this year. More than two years of
civil war in neighbouring Syria have aggravated deep-rooted sectarian divisions in Iraq, fraying the country's
uneasy coalition of Shi'ite Muslim, Sunni Muslim and Kurdish factions. August 28th’s violence was worst since
August 10, when nearly 80 people were killed during a religious holiday. More than 1,000 Iraqis were killed in
July, the highest monthly death toll since 2008, according to the United Nations.
30 China's Sinopec signs $3.1bn Egypt oil deal with Apache
Aug China
China Petrochemical Corporation, also known as Sinopec, has agreed to buy a 33% stake for $3.1 billion in the
Egyptian oil and gas business of US firm Apache Corporation. The deal is the latest in a series of similar moves
by Chinese oil firms as they look to secure energy supplies to meet growing domestic demand.
China is the world's second-largest consumer of oil, behind the US, and imports are key to meeting its needs.
GKCA Update
1st to 30th Sep
Starred Articles
03 Microsoft to buy Nokia’s mobile business for $ 7.2 billion
Sep Corporate > Microsoft – Nokia
Microsoft has announced that it will buy Nokia’s mobile phone business for 5.44 billion Euros ($7.2 billion).
Microsoft will pay 3.7 billion pounds for Nokia’s devices unit and another 1.65 billion for patents. Nokia, once
the undisputed leader in mobile phones, has been struggling to respond to competition from smartphone
makers Samsung and Apple. Nokia will continue to own the Nokia brand and will concentrate on its networking
equipment unit, navigation business and technology patents. President and CEO of Nokia, Stephen Elop, who
ran Microsoft’s software business before moving to Nokia in 2010, will return to Microsoft as head of its
mobile devices business. The deal is expected to close in early 2014.
03 Verizon to buy Vodafone’s 45% in JV for $130bn
Sep Corporate > Verizon – Vodafone
Verizon Communications will buy out Vodafone Group's 45% stake in Verizon Wireless for $130 billion. The
deal marks the third largest announced acquisition in corporate history, after Vodafone's 1999 buyout of
Germany's Mannesmann for $203 billion and AOL's $165 billion takeover of Time Warner in 2000. It also marks
British telecom giant Vodafone's exit from the large but mature US mobile market. Under the terms of the
deal, Vodafone would get $58.9 billion in cash, $60.2 billion in Verizon stock, and an additional $11 billion from
smaller transactions that would take the total deal value to $130 billion.
04 US Senators’ draft backs limited action in Syria, allies divided on support to
military intervention
Sep World > Syria
US senators in a key committee have agreed on a draft resolution backing the use of US military force in Syria.
The measure to be voted on next week sets a time limit of 60 days on any operation. It also bans the use of any
ground forces in Syria. U S President Barack Obama and Secretary of State John Kerry have been endorsing a
military intervention in Syria since the alleged chemical attack in Syria on 21st August and claimed that there
was reasonable evidence that Syrian President Bashar al Assad’s forces had carried out the chemical weapons
attack. Obama had said that the attack was a violation of international norms and posed a serious threat to the
US and its allies. A refusal to act would undermine the credibility of America's other security commitments,
and that a limited strike was needed to degrade the Syrian government's capabilities. However, the U.N.
mission investigating the suspected chemical attack is still to declare its final report concluding the
investigation.
Key US allies are divided on whether to support an US military intervention in Syria. Key NATO ally Britain,
which had supported previous US campaigns, voted against joining a coalition sought by Obama to respond
militarily. NATO allies want the United Nations to authorize any military response, something that Obama said
was unlikely because of opposition by permanent Security Council member Russia, a Syrian ally. France and
Turkey followed by Germany have strongly backed the US plan for military intervention in Syria. However,
Obama still faces a tough task winning the support of the American people, whose opposition to the US
intervention in Syria is growing.
GKCA Update
1st to 30th Sep
04 Japan government to take steps to contain deadly Fukushima nuclear
radiation leaks
Sep World > Japan
Japanese authorities have revealed that the crippled Fukushima Daiichi nuclear power plant has radiation leaks
which could be fatal within hours. Radiation readings near water storage tanks at the Fukushima Daiichi
nuclear power plant were as high as 2,200 millisieverts [mSv] per hour – a rise of 20% from the previous high.
The Japanese government has stepped in to help contain the highly toxic leaks. Japan's nuclear regulation
authority, Tepco's admission in August that about 300 tonnes of radioactive groundwater is escaping into the
nearby Pacific Ocean every day, and the more recent discovery of leaking storage tanks and pipes, prompted
the government to inject more than £300m to contain the water crisis. The government will also involve
building a mile-long impenetrable frozen wall beneath the plant to prevent groundwater from mixing with
contaminated coolant water. About 3, 30, 000 tonnes of toxic water is held in about 1000 tanks installed at the
site. The government also wants to speed up the development of a new water treatment system that can
remove most radioactive substances from the water.
05 Gold buyers rush to restart imports as new import rules clarified
Sep Economy > Gold
Gold buyers lined up to restart imports as the Indian Customs department clarified new rules on how the
Reserve Bank’s call for gold imports to be split 80 percent for domestic use and 20 percent for export would be
monitored. The move aims to boost exports but could also rein in imports to around 30 tonnes a month and
keep India on track to meet the government's target of 845 tonnes in the 2012/13 fiscal year. The Reserve
Bank of India (RBI), in a bid to help the government stem the tide of gold imports which had pushed the
Current Account Deficit to a record high, had told importers on July 22 that a fifth of their purchases would
have to be turned around for export. But the vague details of the rule had caused buyers to hold off and
instead use stocks that had piled up in April - May when record imports of 304 tonnes provoked the
government into hiking duty to an all-time high of 10 percent.
09 Leander Paes - Radek Stepanek win US Open Men’s Double title, Rafael
Nadal and Serena Williams clinch US Open Men and Women’s title
Sep Sports > US Open
Leander Paes won his eighth men's doubles Grand Slam title, and 14th overall, as he combined with Radek
Stepanek to clinch the US Open men’s doubles trophy with a dominating victory over second seeded Alexander
Peya and Bruno Soares in the title clash on August 8. Paes and Stepanek had won the Australian Open last
year.
Rafael Nadal claimed his second US Open title and 13th Grand Slam crown defeating world number one Novak
Djokovic in a tough final match on August 9. Nadal’s win edged him closer to Roger Federer's record of 17
majors and put him one behind Pete Sampras.
World number one Serena Williams captured her fifth US Open title, and second in a row, by outlasting
second-ranked Victoria Azarenka to claim her 17th career Grand Slam crown on Sunday, August 8. She is the
first top-seeded champion since Justine Henin in 2007 and the first woman to defend the US Open crown since
Kim Clijsters in 2010. The 31-year-old Serena also became the oldest Open Era women's winner in US Open
history.
GKCA Update
1st to 30th Sep
10 US to hold back military strike against Syria as Russia proposes plan for
surrender of Syria’s chemical weapons
Sep World > Syria
Russia, has said that it would soon submit an action plan that would result in Syria surrendering its stock of
chemical weapons and an internationally supervised destruction of its arsenal of poison gas. Mr. Obama has
agreed to discuss Moscow’s proposal in the U.N. Security Council. The Syrian government has accepted the
Russian proposal. Following the development, the U.S. Senate has decided to delay voting, which was earlier
scheduled for Wednesday, on endorsing Mr. Obama’s decision to attack Syria. President Obama has said he
will pursue diplomatic efforts to remove Syria's chemical weapons but has ordered the US military to "be in a
position to respond" if such measures fail. Russia’s initiative has generated wide support across the globe,
from countries including India, China and Iran. US Secretary of State John F. Kerry had suggested on Monday
that the Syrian government could avert a U.S. attack by placing its chemical weapons under international
control.
rd
11 Raghuram Rajan becomes 23 RBI Governor, his immediate measures help
recover
Sep rupee
Economy > Rupee
Raghuram Govinda Rajan became the 23rd Governor of the Reserve Bank of India on 5th September, succeeding
Mr. Duwuri Subbarao. The measures announced by him were well received by the markets and helped the
rupee recover to around 63 per US dollar. Unlike his predecessor, Ranjan hinted at shifting focus from inflation
control to boosting growth.
Measures:
(i). To attract inflows from overseas investors and NRIs, Rajan announced a special window to swap foreign
currency non-resident (FCNR) dollar funds mobilised by banks.
(ii). The RBI also doubled the re-booking amount that exporters can do on their cancelled forward contracts
to 50 per cent from 25 per cent. It also extended the facility to importers.
(iii). The RBI restored the permission to invest 400 per cent of a domestic corporate's networth in foreign
market provided it has raised the funds through external commercial borrowing (ECBs) route.
(iv). Rajan also set up a number of committees for revising and strengthening monetary policy framework,
financial stability, financial inclusion, NPAs and an outside panel of experts headed by former Governor
Bimal Jalan to screen applications for new bank licenses. Rajan said the new bank licences will be issued
around January next year.
12 India to launch Mars Orbiter Mission by October end
Sep Science and Technology > Mars
The Indian Space Research Organisation (ISRO) is preparing to launch the Mars Orbiter Mission (MOM)
spacecraft, India’s own Mars excursion project, between October 21 and November 19 from Sriharikota. The
MOM spacecraft carries five instruments or payloads to study as many aspects of Mars, including the detection
of methane in its atmosphere.
13 Narendra Modi named BJP’s Prime-Ministerial candidate
Sep India > BJP
The BJP formally announced Gujarat Chief Minister Narendra Modi as its Prime-Ministerial candidate for the
2014 elections on Friday, 12th September, even as veteran leader L.K. Advani opposed the decision. The
formal announcement came after the BJP Parliamentary Board, which Mr. Advani skipped. It was preceded by
GKCA Update
1st to 30th Sep
discussions between BJP president Rajnath Singh and two senior leaders Sushma Swaraj and Murli Manohar
Joshi, who were initially opposed to the decision but later supported Modi as the Prime-Ministerial candidate.
13 Twitter files for Initial Public Offering (IPO)
Sep Corporate > Twitter
Famous microblogging site Twitter Inc has filed for an initial public offering with U.S. regulators, under a 2012
law intended to help emerging corporations with less than $1 billion in revenue go public. Chief Executive Dick
Costolo has for years waved off suggestions it intended to go public, saying the company remained flush with
cash. Last year, Facebook had filed for an IPO and after a mismanaged debut, has come back strongly with its
stock reaching a record-high of $45 this week. Twitter, which has been valued by private investors at more
than $10 billion, should break even this year and is on track for 40 percent annual growth.
16 US, France and Britain demand strong resolution to implement US-Russian
accord on Syria
Sep World > Syria
The United States, France and Britain are demanding a strong UN resolution to implement the U.S.-Russian
accord on destroying Syria’s chemical weapons. The framework document says Syria must provide full details
of its weapons stockpile within a week, with the chemical arsenal eliminated by mid - 2014. If Syria fails to
comply, the deal could be enforced by a UN resolution with the use of force as a last resort. Syria also recently
agreed to join the global Chemical Weapons Convention, and the UN said it would come under the treaty from
14 October. Obama said that if diplomacy fails, the United States was prepared to act.
19 RBI allows banks to open branches without its permission
Sep Bank Specific > RBI
The Reserve Bank of India is allowing banks to open branches, including in big cities, without its permission.
The general permission to domestic scheduled commercial banks (other than RRBs) was given with the
objective of further liberalising and rationalising the branch authorisation policy. However, the automatic
permission is subject to certain conditions including at least 25 percent of the total number of branches
opened during the financial year to be opened in unbanked rural (Tier 5 and Tier 6) centres. At the same time,
RBI said, total number of branches opened in Tier I cities cannot exceed total number of branches opened in
Tier 2 to 6 centres and all centres in the North Eastern States and Sikkim.
Tata-Singapore Airlines to start $100m airline; AirAsia partner says he was
20 not informed; Tata-SIA and Jet-Etihad deal a sign of foreign companies' long
Sep term investment intentions
Corporate > Aviation
Tata Sons has entered into a joint venture with Singapore International Airlines, with a 51% stake to launch a
full service carrier in India. The JV will have an initial investment of $100 million. This is the Tata Group's
second JV after its alliance with budget carrier AirAsia (in which it holds 30% stake) 7 months ago.
Arun Bhatia, the Tatas' AirAsia India partner said that he was “shocked to hear about Tata Sons' new JV with
Singapore Airlines”. He said he was kept in the dark about the venture and has offered to buy out the Tatas'
stake in the JV.
UAE's national carrier Etihad Airways had announced a 24% stake in Jet Airways 5 months ago.
GKCA Update
1st to 30th Sep
Both deals signal the willingness of foreign carriers to do business in India, with a long term perspective. There
have been three foreign direct investments in India so far (Tata-SIA, Tata-AirAsia and Jet-Etihad) after the
government's 2012 decision to allow upto 49% foreign stake in domestic carriers.
23 Blackberry to be taken over by Fairfax in $4.7bn deal
Sep Corporate > Blackberry-Fairfax
Blackberry has agreed to be bought by Fairfax Financial Holding for $4.7 billion. Fairfax is owned by Canadian
billionaire Prem Watsa. Blackberry is expected to write off almost $1 bn in the second quarter, due to poor
sale of its handsets.
Fairfax, Blackberry's largest shareholder with 10% of the stock, has offered $9 a share in cash.
Blackberry will have time until November 4 to seek superior offers, which the Fairfax-led consortium has the
right to match.
The India-born Prem Watsa has often been referred to as the 'Canadian Warren Buffett' because of his long
term views on investments.
24 NSA surveillance targets Indian politics, space and nuclear programmes
Sep India > US Secret Surveillance
A top secret document by Edward Snowden has revealed that the United States deployed its Prism programme
in India to gain access to live communications as well as stored information on three vital issues related to
India’s geopolitical and economic interests. They are: Nuclear, Space and Politics. Much of the communication
targeted by the NSA is unrelated to terrorism, contrary to claims of Indian and American officials. The
document carries the brand logos of companies like Gmail, Facebook, MSN, Hotmail, Yahoo!, Google, Apple,
Skype, YouTube, paltalk.com and AOL implying that the NSA tapped directly into the servers of these tech
giants.
The NSA document also has names of several Asian, African and Latin American countries from where they
picked data on oil to WTO to government policies, making it clear that the NSA spying was focused on
commercial and business areas, and not on its stated objective of national security.
24 VK Singh refutes J&K Govt coup charges; admits to 'secret fund'
Sep India > VK Singh
Former Army chief Gen VK Singh refuted allegations that he had set up the Technical Support Division(TSD), a
counter-intelligence unit to topple the J&K government. However, he admitted having a secret fund to be used
for bringing Kashmiri people together and not for carrying out a change of government, as alleged. Singh said
that Ghulam Mir, the Kashmir agriculture minister, was paid for carrying out certain tasks in the interest of the
nation, and that paying ministers was nothing new in J&K.
Background:
Gen VK Singh was alleged to have set up and used the Technical Support Division to topple the J&K
government, conducting activities like tapping phones of top Defence Ministry officials and misuse of general
staff funds close to 8 crore. He was also alleged to have used the TSD to thwart the appointment of current
Army chief Gen Bikram Singh. The TSD routed money via a Kashmiri NGO that filed a case against Gen Bikram
Singh for a fake encounter during his posting as a brigadier in J&K. Currently, the TSD is defunct and will
probably be shut down.
GKCA Update
1st to 30th Sep
25 67 people dead in Kenya mall siege
> Nairobi Attack
Sep World
Gunmen laid siege to Westgate mall in Nairobi, Kenya killing 67 people and injuring about 175 in an attack that
lasted for 4 days. Somali group al-Shabab claimed responsibility for it, saying that it had carried out the attack
in retaliation for operations of Kenyan army in Somalia. Intelligence reports indicated the involvement of
American and British citizens in the attack, but have not been confirmed yet. The Kenyan government
announced a 3 day mourning following the incident.
26 RBI bans zero per cent EMI Schemes
Sep Economy > RBI
As a move intended to protect customers, the Reserve Bank of India (RBI) has banned zero per cent interest
rate scheme for purchase of consumer goods. The RBI also said that no additional charges can be levied on
payment through debit cards. According to the notification, the only factor that can justify differential rate of
interest for the same product, tenor being the same, is the risk rating of the customer, which may not be
applicable in case of retail products where the interest is generally kept flat and is indifferent to the customer
risk profile.
Lifetime ban for Lalit Modi, former IPL cricket chief; Srinivasan re-elected
26
BCCI president
Sep India > Ban for Lalit Modi
The Board of Control for Cricket in India (BCCI) has banned Lalit Modi, former Indian Premier League (IPL)
commissioner, for life on grounds of indiscipline and misconduct. He was suspended 3 years ago owing to
claims of corruption. Meanwhile, N Srinivasan, former BCCI President, has been reappointed as the president.
Srinivasan was forced to resign after his son-in-law Gurunath Meiyappan’s name cropped up in a betting
scandal in the latest IPL. Srinivasan won’t be able to exercise his powers as president till the Supreme Court
clears a PIL filed against him.
29 Leaders from US and Iran meet to discuss Tehran nuclear issue
Sep World > US-Iran
US President Barrack Obama and Iranian President Hassan Rouhani initiated talks over resolving suspicion
about Tehran’s nuclear plans on 27th September. The discussion was a huge step towards ending three
decades of estrangement. According to Rouhani, resolving the Tehran nuclear issue would help in easing USIran relations that went sour after the Iranian revolution in 1979.
Earlier on 26th September, Mohammad Javad Zarif the Iranian foreign minister had a discussion with the
foreign ministers of the five permanent members of the United Nations i.e. France, Russia, Britain, China and
the United States as well as the foreign minister of Germany regarding Iran’s nuclear Programme.
Sanctions imposed by the superpowers have for long adversely affected Iran’s economy. However a new
proposal has been placed before Iran provided it scaled back its uranium enrichment.
30 Ex Bihar chief minister Laloo Prasad Yadav convicted in fodder scam
Sep India > Fodder Scam
Laloo Prasad Yadav has been convicted of corruption and criminal conspiracy in a fodder scam for siphoning off
9.5 billion rupees in 1996 when he was the chief minister of Bihar. The money was meant to be used to buy
fodder for cattle in Bihar. Last March charges were framed against him for withdrawing funds from the
GKCA Update
1st to 30th Sep
treasuries in Banka and Bhagalpur districts between 1994 and 1996 to which Yadav said that the accusations
were untrue. He will be sentenced on the 3rd of October.
Awards
17 Nina Davuluri becomes first Indian-American to be crowned Miss America,
racist tweets follow
Sep Miss America
24 year old, Nina Davuluri, an Indian-American from New York, has been crowned Miss America 2014. She is
the first Miss America winner from an Indian background. Nina is an aspiring doctor who plans to use the
$50,000 prize money to fund her studies. Soon after she was declared the winner, a number of racist
comments surfaced on Twitter. There were tweets referring to her Indian descent distastefully with one tweet
even calling her a terrorist. Davuluri however brushed aside the criticism saying that she had to rise above that
and that she always viewed herself as a first and foremost American.
Bank Specific
19 SBI increases interest rates, makes loans costlier
Sep RBI
SBI has increased the spreads on auto and home loans by as much as 0.20 per cent, which will affect new
borrowers. Earlier SBI announced that it had hiked the base rate or the minimum rate of lending from 9.70
percent to 9.80 percent. Home and auto loan borrowers typically pay a margin, or a spread, above the base
rate, which is arrived at as per the risk and quantum of borrowing. SBI has hiked rates for loans to 14.55
percent from 14.45 percent. New housing loans under Rs 30 lakh will come at 10.10 percent as against 9.95
percent earlier, while interest rates on auto loans will go up to 10.75 percent.
23 JPMorgan's legal complications set to increase
Sep JPMorgan
JPMorgan Chase is in talks with state and federal agencies to settle a probe into sale of mortgage securities to
investors in the years before the 2008 financial crisis. During the talks, amounts from $3 billion to $7 billion
were proposed as settlement. However, the amounts are sure to be significantly higher than those of the other
settlements the bank has reached for resolution of separate regulatory issues. Along with the crisis-era
mortgage business, the investigations include JPMorgan's debt collection practices and its hiring of children of
Chinese officials.
Corporate
05 BlackBerry sale likely to happen by November
Sep Blackberry
BlackBerry Ltd's board hopes to run a "fast" auction process that could result in a sale of the company by
November. A special committee of board members has narrowed its list of potential bidders since the
company put itself up for sale in August, and is now pushing for quick resolution.
GKCA Update
1st to 30th Sep
12 Ashok Vemuri to take over as CEO, president of iGate
Sep iGate
Software services company iGate Corporation announced the appointment of Ashok Vemuri as its president
and CEO on Thursday. He will also serve on the company’s board. Mr. Vemuri recently quit Infosys as board
member and head of its America business and Global Head of Manufacturing and Engineering services. He had
also established and ran Infosys’ financial services and insurance vertical for almost a decade. Mr. Vemuri also
served as Chairman of Infosys’ China operations.
17 Wal-Mart to take a call on its India plans by month end, decide on its JV fate
with Bharti
Sep Bharti - Wal-Mart
Wal-Mart will take a call by the month-end on whether it will continue to do business in India or exit the
country altogether. A section of top executives of the company feel that doing business in India is difficult with
issues ranging from stringent entry conditions for foreign multi-brand retailers to the country's notoriously
corrupt system that makes it difficult for American corporations to do business cleanly in the country without
flouting US anti-bribery laws.
The fate of the joint venture between Bharti Enterprises and Wal-Mart would also be decided by the end of
October. The Indian government has clarified the FDI policy and made it more attractive for multi-brand retail.
Bharti and Wal-Mart have 50:50 joint venture for wholesale retail while the Easyday front-end stores are
wholly owned by Bharti Retail.
19 Google to pursue quest to reverse ageing process
Sep Google
Internet search giant Google is funding Calico, a new company that will attempt to find ways to slow the
ageing process and other associated diseases. Larry Page, CEO of Google, did not disclose how much money
will be poured into Calico, but said that it will not be a major commitment.
Arthur Levinson, a former Google board member who is the ex-CEO of biotechnology company Genentech, will
head Calico.
26 Larsen & Toubro toll road IPO in Singapore
Sep L&T
India's Larsen & Toubro Ltd is planning to list its toll road assets in Singapore in an Initial Public Offering (IPO)
worth between $500 million to $1 billion using a business trust structure. Standard Chartered PLC and Nomura
Holdings Inc are working with Larsen & Toubro on the deal and others may also join the transaction.
A number of other companies such as Apollo Hospitals and Infrastructure Leasing and Financial Services, have
been working on Singapore business trust IPOs for their different subsidiaries in recent months.
30 Kingfisher Airlines suspected over aircraft lease loans
Sep Kingfisher Airlines
Kingfisher Airlines faces Central Bureau of Investigation’s suspicion turning towards it for allegedly misusing
the aircraft sale and lease-back model to draw off bank funds of around Rs. 2,200 cr. On the basis of tip-offs
from banks, CBI suspects that Kingfisher obtained loans for the leasing amount on inflated quotations from
GKCA Update
1st to 30th Sep
dummy leasing firms, which were apparently floated by it. A Kingfisher Airlines spokesperson denied the
allegations, while a CBI official said no details can be made public as the matter is under investigation.
Economy
06 BRICS economies plan $100bn reserves fund
Sep BRICS
Leaders of the BRICS group of nations - Brazil, Russia, India, China and South Africa have said they will set up a
$100bn (£65bn) fund to guard against financial shocks. The move comes as emerging economies across the
world have been hit by speculation that the US may scale back its key economic stimulus programme soon.
The BRICS leaders said the details of the fund were still being worked out.
19 Rupee gains 158 paise to reach 61.80 against dollar
Sep Rupee
The rupee rose by 158 paise on Sept 19, to reach a 1 month high of 61.80 against the dollar. The rise is due to
hopes of increased capital inflows after the US Federal Reserve's surprising decision to keep its massive bondbuying program intact. It had settled on 63.38 in trade just one day ago.
India
01 Asaram Bapu arrested
Sep Asaram Bapu
The Jodhpur police have arrested spiritual guru Asaram Bapu from his ashram at Indore city in Madhya
Pradesh for allegedly sexually assaulting a 16-year-old schoolgirl. The girl had lodged a complaint with the
police on August 20, accusing Asaram of sexually assaulting her at his Jodhpur ashram. Thousands of Asaram
supporters took to the streets to protest against his arrest and clashed with media persons in his Indore
ashram. The victim's father, who had started a hunger strike in Shahajahanpur in Uttar Pradesh demanding
Asaram's arrest, has reportedly ended his fast.
03 Air fares to go up significantly as oil companies hike aviation fuel prices
Sep Aviation
Commuters will see a steep increase in air-fares as oil companies have hiked aviation turbine fuel (ATF) prices
by 7%, taking the prices of jet fuel, which is the single largest component of an airline's operating cost, to an
all-time high. Now ATF per kilo-litre costs Rs 75,031 in Delhi; Rs 77,632.4 in Mumbai and is the steepest in
Kolkata at Rs 85,645.1. The only way to escape high fares will be to book as early as possible. Advance
domestic fares are very reasonable as airlines want to fill planes and also generate some much-needed cash.
Low-cost carrier (LCC) SpiceJet has already raised both spot and advance purchase fares from Tuesday, 3rd
September evening by over 25%. Jet Airways said it was planning a hike shortly. Other Low Cost Carriers (LLCs)
are also likely to follow suit.
03 Jailed IPS officer Vanzara slams Gujarat govt ‘treachery’ in resignation letter
Sep Fake Encounter Case
Jailed Deputy Inspector General of Police D G Vanzara, the man who allegedly carried out successive fake
encounters in post-Godhra Gujarat, resigned from the Indian Police Service (IPS) on Tuesday, 3rd September,
GKCA Update
1st to 30th Sep
accusing the Narendra Modi government of betraying its loyal officers to save its own face from the CBI and
gain political benefits. Vanzara clearly indicated that what he did to counter the ‘Jihadi menace’ was done with
the explicit sanction and encouragement of the Gujarat government. In his 10-page letter, Vanzara has
portrayed Amit Shah, former home minister of Gujarat, as the main villain and said that Gujarat Chief Minister,
Narendra Modi, whom he used to adore like a God could not stand up to the occasion under the evil influence
of Amit Shah and save him and his officers from arrest. He said that the place of the Gujarat government
should either be in Taloja Central Prison at Navi Mumbai or in Sabarmati Central Prison at Ahmedabad. The
Congress has called for Modi’s resignation following the letter.
05 Indian author Sushmita Banerjee killed by Taliban
Sep Taliban
Indian author Sushmita Banerjee has been killed by the Taliban late on Wednesday, 4th September, in
Afghanistan. Married to an Afghan businessman, Jaanbaz Khan, Banerjee had recently moved back to
Afghanistan after spending a few years in India. Her best-selling book, Kababuliwalar Bangali Bou (A
Kabuliwala's Bengali Wife), was written in 1995 after she escaped from the clutches of the Taliban. Banerjee
had possibly attracted the ire of the Taliban for writing about the atrocities faced by women in Afghanistan as
well as for her ceaseless social work, especially for women's healthcare and upliftment. In July, a female police
officer was killed and recently a female MP was abducted by suspected Taliban militants. Banerjee's execution
does not bode well for Afghanistan's women, especially when their empowerment under the Hamid Karzai
regime was held up as one of the greatest successes of the NATO coalition forces.
09 Over 250 projects worth Rs. 11 lakh crore to seek fast-track clearance by
PM-backed cell
Sep Pending Projects
Prime Minister Manmohan Singh’s initiative to revive investor sentiment by fast-tracking long-stalled
investment projects through the Cabinet Committee on Investments (CCI) and a special cell under it, is
encouraging Indian as well as foreign companies to approach the government. Over 250 projects worth Rs 11
lakh crore are now being considered, more than double the 120 cases worth Rs 5 lakh crore it started with in
July. The Aditya Birla group, Shell, Vedanta, GMR, Cairn India, Essar, Jaypee, Reliance Power and ITC are
among the many corporates seeking to free big-ticket investments tangled in red tape and see hope in this
mechanism. Industry body ASSOCHAM had said that 43 percent of all investment projects worth Rs 52 lakh
crore remained nonstarters as of March 2013.
10 38 killed in communal riots in Muzaffarnagar, Uttar Pradesh
Sep Muzaffarnagar Riots
38 people have been killed in communal clashes in Muzaffarnagar of Uttar Pradesh. On August 27, a youth was
murdered by two youth from another community following alleged eve-teasing in Kawal. Later the alleged
murderers were also killed by an angry mob. Following the incident, sporadic clashes and riots broke out
between the Hindu and Muslim communities. Incidents of violence were reported from Sisauli, Shahpur,
Fugna, Kalapar and Dhaurakala areas of Muzaffarnagar. Cars and houses were set on fire and many had to flee
from their homes for fear of getting killed. The army and police have been called in to control the situation and
curfew has been imposed on the violence-hit areas.
GKCA Update
1st to 30th Sep
13 Delhi has highest per capita income in the country
Sep Per-Capita Income
The per capita annual income in Delhi has increased to Rs 2.01 lakh in 2012-13 compared to Rs 1.73 lakh in the
previous fiscal, which is three times the national average and highest in the country. A whopping 3.36 lakh
vehicles hit the city roads in 2012-13 and around 2.55 crore cases of Indian Made Foreign Liquor, country
liquor and beer were sold in the city during the year as against 1.08 crore cases in 2011-12. The consumption
of diesel has decreased and dependence on LPG is also decreasing with increase in use of piped cooking gas
PNG.
19 Prices likely to soar as 85-90% of onion stock over
Sep Onions
Onions are likely to see a steep rise in prices over the next 15-20 days as 85-90% of the country's onion stock is
over and only 3-4 lakh tonnes remain available for consumption. Traders, aware of the depleting stock and
knowing that the arrival of the Kharif crop from October will reduce prices, are looking to extract maximum
profits by exploiting the current crisis. The government has indicated that the Minimum Export Price (MEP)
would be raised to $900 per tonne in the next couple of days from $650 to practically halt exports. However,
fresh produce coming from Karnataka, Andhra Pradesh, Tamil Nadu and Pakistan is likely to bring down the
price substantially in the next 15-20 days.
23 Suspended IAS officer Durga Shakti Nagpal reinstated, inquiry called off
Sep Durga Shakti Nagpal
The Uttar Pradesh government has reinstated suspended IAS officer Durga Shakti Nagpal and the inquiry
against her has been called off. The move comes as very surprising since the government had been claiming
that any decision on her would only be taken after the inquiry is completed. A day before, Durga and her IAS
officer husband Abhishek Singh met chief minister Akhilesh Yadav at his official residence and offered an
explanation about the events at Gautam Budh Nagar's Kadalpur village on July 27 that led to her suspension.
Background:
Durga Shakti Nagpal was suspended for ordering the demolition of a wall surrounding a mosque in Gautam
Budh Nagar in Uttar Pradesh. Her suspension had led to a countrywide public outcry and it was alleged that
Nagpal was punished for taking action against the sand mafia. The Akhilesh government also chargesheeted
Nagpal, asserting that her actions could have led to communal tension in the surrounding area. Nagpal cited
the Supreme Court orders in defence of her actions. The government, however, found "discrepancies" in her
reply to its chargesheet and ordered a second inquiry into the matter.
Others
12 Audio pioneer Ray Dolby dies aged 80
Sep Ray Dolby
Ray Dolby, the US engineer who founded Dolby Laboratories and pioneered noise reduction in audio
recordings, has died in San Francisco aged 80. Mr Dolby had suffered from Alzheimer's disease for several
years and was diagnosed with leukaemia. Mr Dolby won an Oscar for his contributions to cinema. He shared
the award with Dolby executive Loan Allen. He also received a Grammy award in 1995 and Emmy awards in
1989 and 2005.
GKCA Update
1st to 30th Sep
Politics & Government
26 Omar says Jammu and Kashmir’s accession was not a merger with Union of
India
Sep Jammu & Kashmir
Omar Abdullah, on Wednesday, 25th September, stated that Jammu & Kashmir acceded to the union of India
but did not merge with it whereas all the other states that are now a part of India first acceded and then
merged with the Indian union in 1947. J & K have their own constitution and flag. He said that during the
partition the future of all the states was decided except that of Jammu and Kashmir which led to the Kashmir
issue. He also stressed on the need for talks with Pakistan and the separatists.
30 Modi Accuses Nawaz Shariff, Rahul Gandhi of insulting PM Manmohan
Singh
Sep Modi-Rahul Gandhi
According to reports by Pakistan’s Geo TV, Pakistan PM Nawaz Shariff called Indian PM Manmohan Singh a
‘dehati aurat’ (village woman). Shariff uttered the words out of protest since India has raised the issue of
Pakistan harbouring terrorists with US President Barrack Obama. BJP’s Prime Ministerial candidate Narendra
Modi expressed anger and stated that such an insult of the PM will not be tolerated.
Narendra Modi also stated that Rahul Gandhi had disrespected the Prime Minister by publicly denouncing the
ordinance that will protect convicted legislators. On the other hand, Nitish Kumar, the chief minister of Bihar
supported Rahul Gandhi saying that the ordinance should be recalled. According to Nitish Kumar, before
framing any law a debate should be held about it in parliament.
Meanwhile, Rajnath Singh replaced Narendra Modi as Bharatiya Janata Party’s national election campaign
committee chief.
Science and Technology
05 Gut bacteria from fat or lean humans can make mice fat or lean, might be
reason for obesity
Sep the
Gut Bacteria
Researchers from Washington University have found that gut bacteria that helps digest foods, making vitamins
and amino acids, might help in explaining why a person is slim or fat. The evidence for this was found from a
spectacular experiment involving humans and mice as part of research on gut bacteria and their role in health
and diseases. The focus for this particular experiment was on obesity. Researchers found pairs of human twins
in which one was obese and the other lean. They transferred gut bacteria from these twins into mice. The mice
with bacteria from fat twins grew fat; those that got bacteria from lean twins stayed lean. The next big step
might be to try using gut bacteria from thin people to treat obesity.
12 Estrogen regulates fat accumulation in men
In Men
Sep Estrogen
The male sex hormone testosterone is usually attributed to changes in a man’s body. As men make less
testosterone as the years go by, they lose much of the energy, or the sexual desire of younger years. However,
a new study has revealed that Estrogen, the female sex hormone plays a much bigger role than previously
GKCA Update
1st to 30th Sep
thought and could redefine the study of how men’s bodies age. While dwindling testosterone levels are to
blame for middle-aged men’s smaller muscles, falling levels of estrogen regulate fat accumulation. Some of the
symptoms routinely attributed to testosterone deficiency are actually partially or almost exclusively caused by
the decline in estrogens. This path-breaking discovery might redefine hormone therapy and provide a new
understanding of testosterone and estrogen in men.
16 Research shows individuals can have multiple genomes
Sep DNA
A single genome from a person can’t reveal everything about a person’s genetic information as was thought
earlier. Scientists have found that it’s common for an individual to have multiple genomes. Scientists are
finding links from multiple genomes to certain rare diseases, and are now investigating genetic variations to
shed light on more common disorders. The discovery is also raising questions about how forensic scientists
should use DNA evidence to identify people. It’s also posing challenges for genetic counselors, who can’t
assume that the genetic information from one cell can tell them about the DNA throughout a person’s body.
Genome from cells taken from one part of the body might not be the same as the genomes in other parts of
the body. Chimerism, as such conditions came to be known, was deemed rare until recently. The variation in
the genomes found in a single person is too large to be ignored. Twins can end up with a mixed supply of blood
when they get nutrients in the womb through the same set of blood vessels. Also, women can gain genomes
from their children. The existence of multiple genomes in an individual could thus have a tremendous impact
on the practice of medicine.
26 Cedric, first computer made of carbon nanotubes, developed
Sep Carbon Nanotube Computer
A basic prototype of a computer made completely of carbon nanotubes has been developed. Carbon
nanotubes are hollow cylinders made out of a single sheet of carbon atoms. CNTS are so thin that thousands
can fit beside one another in very little space as a result it takes little energy to switch them off. This computer
can be the stepping stone to machines that will be smaller, faster and more efficient than the computers today
that use silicon chips and can be the next commercial success.
29 Mobile Games, apps market in India may touch Rs 2,700 cr in 2016
Apps Market
Sep Mobile
Driven by strong smartphone growth and expanding 3G user-base, mobile games and applications in India are
expected to be a Rs 2,700 cr market by 2016 says a report by Avendus Capital. Smartphone users in India are
expected to grow to 67 million this year and 382 million by 2016. Similarly, 3G subscriptions are also expected
to rise from 11 million in 2011 to 56 million this year and touch 266 million by 2016, it added. Five categories
that dominate Indian content landscape on mobile phones include news, videos, music and games. WhatsApp,
Facebook, and Google lead in terms of time share.
Sports
02 Gareth Bale joins Real Madrid from Tottenham for a world record fee of
£86m
Sep Gareth Bale
Gareth Bale has signed for Real Madrid for £85million, making him the most expensive footballer in history. He
played for Tottenham Hotspur for six years, after joining them for £10m as a left-back from Southampton in
GKCA Update
1st to 30th Sep
2007. The 24-year-old scored 26 goals last season and was named player of the year by both the Professional
Footballers' Association and the Football Writers. He's agreed to a pay deal of £300,000 per week on a six-year
contract. The £85.3m (100m euros) move tops the former record transfer deal which was when Real paid
Manchester United £80m for Cristiano Ronaldo in 2009.
World
05 NSA able to crack basic safeguards of privacy on web
Sep US Secret Surveillance Programme
Newly disclosed documents by Edward Snowden have shown that the U.S. National Security Agency has
cracked much of the encryption that guards global commerce and banking systems, protects sensitive data like
trade secrets and medical records, and automatically secures the e-mails, Web searches, Internet chats and
phone calls of people around the world. The NSA, after losing a public court case in the 1990s to insert a ‘back
door’, set out to accomplish its goal by stealth. The NSA accessed messages before they were encrypted and
forced technology companies in the United States and abroad to build entry points into their products and
hand over master encryption keys. Using its influence, the N.S.A. has been deliberately weakening the
international encryption standards adopted by developers. The NSA and its British equivalent GCHQ have
broken into protected traffic of popular Internet companies such as Google, Yahoo, Facebook and Microsoft’s
Hotmail. Google, Yahoo, Microsoft and Facebook have pressed for permission to reveal more about the
government’s requests for cooperation. One e-mail encryption company, Lavabit, closed and another, Silent
Circle, ended its e-mail service rather than comply with the agency’s demands for customer information.
12 NSA shares raw intelligence data with Israel, Facebook Yahoo CEOs hit out
at government and critics
Sep US Secret Surveillance
Recently leaked documents by Edward Snowden have revealed that the US government handed over
intercepted communications likely to contain phone calls and emails of American citizens to its Israeli
counterpart. The agreement places no legally binding limits on the use of the data by the Israelis. This is in vast
contrast to Obama’s previous assurances that there are rigorous safeguards to protect the privacy of US
citizens subjected to surveillance.
Facebook CEO Mark Zuckerberg and Marissa Mayer, ceo of Yahoo have both hit out at the US government and
also the critics who have charged tech companies with doing too little to fight off NSA surveillance. Mayer said
that releasing classified information was treason and executives faced jail if they revealed government secrets.
Zuckerberg said that the US government had done a bad job of balancing people’s privacy and its duty to
protect. Also, the government’s previous assurance that American citizens were not spied upon, didn’t help
global tech companies which served people the world over. Yahoo, Facebook, Google and Microsoft have filed
suits in the FISA court to allow them to disclose more information.
12 Militants kill soldiers as Egypt’s military broadens crackdown
Sep Egypt
Suicide bombers killed at least six soldiers in two separate attacks in northern Sinai as the new government
broadened its crackdown on Islamist militants there and also appeared to be moving against non-Islamist
voices of dissent. Military forces claim to have killed more than 100 militants in Sinai till now. Unwarranted
raid of the offices of the famous left-leaning April 6 group and detention of its activists is seen as strong signal
sent out to dissenters. The government has also filed charges in a military court against a prominent journalist
covering Northern Sinai, Ahmed Abu Deraa, over claims of reporting false information contradicting the army’s
GKCA Update
1st to 30th Sep
statements about operations in Sinai. The new government has already taken several Islamist satellite
channels off the air and detained journalists, ensuring that only those Egyptian channels, supportive of the
military takeover, remain on air.
17 Shooting spree at Washington naval base leaves 13 dead
Sep US Navy Yard Shooting
A US naval reservist launched out a shooting rampage on a navy yard in the heart of Washington on Monday,
killing 13 people and exchanging fire with police before losing his own life. Police identified the alleged shooter
as 34-year-old African-American Aaron Alexis, of Fort Worth, Texas, who served full-time in the Navy from
2007 to 2011. The motive for the attack was unknown.
19 One year needed to destroy chemical weapons: Assad; UN Security Council
must act on Syria: Kerry
Sep Syria
Syrian President Bashar al-Assad has said that it could take up to one year for his country to destroy its
chemical weapon stockpile. The disarmament plan was declared by the US and Russia on Sep 12, 2013.
US Secretary of State John Kerry called on the UN Security Council to act on the enforcement of the US-Russia
plan next week.
22 Bo gets life sentence for graft
Sep China
Bo Xilai, the tainted Chinese politician, tried on charges of bribery, embezzlement and abuse of power, has
been given a life sentence. Bo will be deprived of political rights for life. The life sentence is likely to end Bo’s
brand of Pro-Maoist populism, which made him a popular name in Chinese politics. He was Communist Party
chief in Chongqing city and tipped to be a member of China’s highest political body, the politburo standing
committee before his fall from grace. A murder investigation against his wife, Gu Kailai, came to light and
revealed graft charges against him.
23 Angela Merkel’s Conservative Party wins Germany election
Sep Germany
Chancellor Angela Merkel's conservative party has won Germany's election, but finished just short of an
absolute majority. Her outstanding victory reflects the voters’ endorsement of her steady leadership during
the Euro Zone crisis. Her conservative bloc took about 41.5% of the vote - but her liberal partners failed to
make it into parliament. She is likely to seek a grand coalition with the Social Democrats (SPD) who won 26%.
23 78 killed in deadliest attack on Christians in Pakistan
Sep Pakistan
In one of the deadliest attacks ever on Christians in Pakistan, 75 people and more than 130 were injured when
two suicide bombers discharged their explosives outside the All Saints Church in the city of Peshawar on
Sunday, 22nd August. Most of the poor worshippers had gathered at the church's lawn for free food, after the
Sunday morning service, when the bombers struck. The blasts were preceded by gunfire. Imran Khan-led
Pakistan Tehreek-i-Insaf rules the northwestern Khyber Paktunkhwa where the blasts occurred.
GKCA Update
1st to 30th Sep
26 Documents reveal Martin Luther King on the list of those spied upon by NSA
Sep US Secret Surveillance
Latest declassified documents reveal that the NSA had drawn a watch list of critics of the US War in Vietnam
and spied on them. Civil rights leader, Martin Luther King and Whitney young and boxer Muhammad Ali were
spied on by the US National Secret Agency (NSA) during the Vietnam War protests.
The NSA also spied on 2 senators as well as journalists from the New York Times and the Washington Post. The
operation that was exposed in the 1970s was called ‘Minaret’.
28 Pakistan to grant MFN status to India
Sep Indo-Pak Trade
While seeking a $6.64 billion bailout package from the International Monetary Fund (IMF), the Pakistan
government has told that as a part of confidence-building measures it was taking steps to eliminate the
negative list on trade with India and grant the Most Favoured Nation (MFN) status as part of its new policy to
promote trade and economic ties in the region.
Interestingly, India had granted the MFN status to Pakistan way back in 1996.
30 Pakistan Bombings - Death Toll reaches 42
Sep Pakistan
After the third attack in a week, the death toll from a car bomb explosion in an ancient market in Peshawar
rose to at least 42. In recent months, Islamist violence has been on the rise in Pakistan, undermining Prime
Minister Nawaz Sharif's efforts to tame the insurgency by launching peace talks with the Taliban. Pakistan's
main Taliban group, which earlier expressed willingness to talk peace on its conditions, denied responsibility
for this attack.
GKCA Update
1st to 31st Oct
Starred Articles
07 Govt. appoints first Woman Chairperson of SBI
Oct Bank Specific > SBI
Ms. Arundhati Bhattacharya will be the first woman chairperson of the State Bank of India (SBI). Succeeding
Pratip Chaudhuri who retired on September 30, she is the first ever female chairman to head SBI in its 206year history. Prior to her elevation she was the Managing Director and Chief Financial Officer of the bank.
Bhattacharya joined SBI as a Probationary Officer in the year 1977 spending 36 years in the state-owned bank.
SBI is now the only Fortune 500 company in India to have a woman chairperson.
07 God Particle and Cell Transport Theory fetch Noble Prizes
Oct Awards > Noble Prize 2013
Peter Higgs of Britain and Francois Englert of Belgium have won the Nobel prize in physics for the discovery of
the "God particle", or Higgs boson, that explains why mass exists. The pair was honoured on Tuesday for "the
theoretical discovery of a mechanism that contributes to our understanding of the origin of mass of subatomic
particles, and which recently was confirmed through the discovery of the predicted fundamental particle", the
jury said.
Two Americans, James Rothman and Randy Schekman, and Germany's Thomas Sudhof won the 2013 Nobel
prize for medicine for research into how the cell organises its transport system.
The three scientists have solved the mystery of how the cell organizes its transport system. Each cell is a
factory that produces and exports molecules. These molecules are transported around the cell in small
packages called vesicles. They discovered the molecular principles that govern how this cargo is delivered to
the right place at the right time in the cell.
08 US shut down: Possibility of a debt default, fall of the dollar
Oct World > US Shutdown
Last week the US began a partial shutdown since the Republican-led House of Representatives did not agree
on passing a budget that included Obamacare. It is the first shut down in 17 years and led to a fall of the dollar.
More than 7 lakh federal employees have been forced to take unpaid leave.
The Federal Reserve will delay reducing its monetary stimulus programme till the shut down is lifted. This will
in turn boost emerging market currencies at the expense of the dollar.
Obama said he would not negotiate with Republicans on budget matters until house lawmakers pass a
temporary financing bill to reopen federal operations and raised the $16.7 trillion dollar debt ceiling.
If the borrowing limit is not lifted by the middle of the month, the US government could default on its debts for
the first time in history.
08 Telangana: Blackouts in Seemandhra, Ministers resign
Oct India > Telangana
Anti Telangana protests in the Seemandhra region have lead to blackouts as electricity employees who
ensured a shut down at various power generating stations further halted the distribution network from 6th
October. A lot of areas in Andhra Pradesh, Karnataka, and Tamil Nadu are facing power cuts and huge
industrial losses. Trains schedules have been thrown off track or been forced to cancel because of the power
cut or due to train routes being blocked by protestors. Angry protestors also blocked national highways in the
east-south belt i.e. Odisha, West Bengal, Tamil Nadu and Karnataka and restricted movement of goods. Prices
GKCA Update
1st to 31st Oct
of essential goods have shot up in Odisha and the transporter sector in the Seemandhra region has suffered
huge losses.
Meanwhile, textiles minister KS Rao and HRD minister Pallam Raju from the Seemandhra region opposed the
move to create Telangana in a cabinet meeting. The cabinet however decided to go ahead with the decision of
creating Telanagana as a separate state with Hyderabad as the joint capital for both Telangana and
Seemandhra. As a result, HRD minister Pallam Raju, tourism minster K Chiranjeevi, MoS for commerce D
Purandeswari and MoS for railways K Suryaprakash Reddy resigned.
Congress MP V Arunkumar also resigned along with 2 of his collegaues.
09 Apax acquires GlobalLogic for US $ 420 mn
Oct Corporate > Apax - GlobalLogic
Private equity major Apax Partners has acquired GlobalLogic, an offshore software R&D services provider for
US $ 420 mn. The acquisition is being done through ODSA Topco Ltd, a company backed by Apax Partners.
GlobalLogic, founded by four IITians, is based in California, with large development centres in India, Ukraine
and Argentina. It has been backed by venture capital investors like New Atlantic Ventures (NAV), New
Enterprise Associates (NEA), WestBridge Capital and Sequoia Capital. The deal is expected to give an exit to
these investors.
10 Flipkart gets $160 m fresh funding
Oct Corporate > Flipkart
Flipkart has raised another $160 million in funding just three months after it raised $200 million in July. This
additional funding came from four new investors- Morgan Stanley Investment Management, Dragoneer
Investment Group, Sofina and Vulcan Capital-alongside existing investor Tiger Global.
Flipkart is now worth more than the total market cap of all 15 listed retail firms, including Shoppers Stop,
Future Retail etc. Flipkart's valuation, among brand led firms, is comparable with retail giants such as Tata
Global Beverages and P&G India.
This is now the single largest amount to be ever raised by any Indian Internet business firm.
10 Walmart, Bharti enterprises call off India Joint Venture
Oct Corporate > Bharti - Walmart JV
Wal-Mart and Bharti Enterprises have announced the termination of their retail joint venture in the cash-andcarry-space. Wal-Mart will buy out Bharti's 50 per cent stake in Bharti Wal-Mart Pvt Ltd, which runs 20
wholesale stores under the Best Price Modern Wholesale brand.
Bharti will now acquire $100 million worth of compulsory convertible debentures (CCDs) held by Walmart in
Cedar Support Services, a company owned and controlled by the Indian firm. It will also continue to run the
‘EasyDay’ retail stores on its own. The financial details of the transaction were not disclosed.
The appointment of former Walmart India Country Head Raj Jain as an advisor to Bharti group is being seen as
the immediate fallout of the termination.
GKCA Update
1st to 31st Oct
10 Libyan PM Ali Zeidan abducted and held hostage
Oct Politics and Government > Libya
Libyan Prime Minister Ali Zeidan was abducted from a luxury hotel called Corinthia in Tripoli and held for
several hours in an unknown location by militia gunmen on 10th October. The militia that took him said that
they had detained him on corruption charges related to financial and administrative matters however, the
justice ministry denied issuing an arrest warrant against him and stated that it was an incident of kidnapping.
Justice and Security has become a cause of concern in Libya since the ouster of Gadhafi in 2011 as the
successive interim governments have failed to assert control over the militia. Instead the interior ministry and
the militia work together many a times seeking security services from the militia and considering them as
parallel forces to the army and police.
14 Odisha, Andhra Pradesh hit by Cyclone Phailin
Oct India > Cyclone
On October 12th, a severe cyclone, Phailin hit the coast of Odisha and Andhra Pradesh. The cyclone is the
worst to hit the eastern coast in the last 14 years with wind speeds of up to 210 km. The coastal district of
Gajam was badly affected with a loss of around Rs. 3,000 crore and 2.4 lakh houses damaged. Officials have
reported 14 casualties in Odisha. Telecom towers have been damaged, train services disrupted, flights
cancelled and electricity supply has been cut. There was loss of business as well since major businesses
remained shut during the festive season after reports of the approaching cyclone.
Loss of life was minimal since India’s disaster preparedness teams took proactive measures before the cyclone.
Around 4.50 lakh people in Odisha and over 1 lakh people in Andhra Pradesh were evacuated. Emergency
response teams and supplies were prepositioned in areas expected to be majorly affected by the cyclone and
helicopters and boats were kept ready to aid rescue operations. Helplines and control rooms were set up and
heads of districts were provided with satellite phones and generators to help them contact the state capital.
15 Archers from Arunachal issued stapled visas miss event in China
Oct India > Arunachal Pradesh
Two young archers who were flying to China to participate in the Youth world championships were stopped
from boarding the flight at the Delhi airport. According to an official from the Archery Association of India
(AAI), the embassy officials said that the stapled visas would do but the airline authorities advised against
sending the girls since they faced the risk of being deported back home.
Background:
China considers Arunachal Pradesh as a part of China and not India and has been issuing stapled visas to
residents of Arunachal Pradesh since 2010. Before that no visas were issued to Indian citizens from Arunachal
Pradesh stating the territorial issue. According to China their practice of issuing stapled visas allows people
from Arunachal to travel to China even though the border issue remains unresolved and in turn shows China’s
flexibility. India on the other hand thinks that this move violates Indian sovereignty and has decided that those
issued stapled visas will not be allowed to travel to China.
15 Nobel Prizes for Peace, Chemistry and Economics announced
Oct Awards > Nobel Prize
Michael Levitt, Martin Karplus and Arieh Warshel will share the Nobel Prize in Chemistry. The trio devised
computer simulations to understand chemical processes which may lead to development of new medicines.
GKCA Update
1st to 31st Oct
The Organisation for the Prohibition of Chemical Weapons (OPCW) won the Nobel Peace Prize for its work to
rid the world of chemical weapons. The Hague-based OPCW is backed by the UN and was founded in 1997. The
OPCW and the UN have been destroying Syria's production facilities since October 1. Syria has now become
the 190th member of the OPCW.
Eugene Fama, Lars Peter Hansen and Robert J Shiller were given the Nobel Prize in Economics for their
empirical analysis of asset prices. They developed a statistical method that is particularly well suited to testing
rational theories of asset pricing.
18 Wal-Mart gets clean chit in FEMA case
Oct Corporate > Wal Mart
The Enforcement Directorate has given a clean chit to Wal-Mart in an alleged violation of Foreign Exchange
Management Act (FEMA). Wal-Mart can now pursue its India investment plans more aggressively.
Background:
In 2010 CPI's Rajya Sabha member M P Achuthan had written to PM Manmohan Singh, accusing Wal-Mart of
violating rules when it invested $100 million in a Bharti subsidiary, Cedar Support Services, which in turn
allegedly diverted it to retail chain Easyday. The issue was then flagged as there was no policy of FDI in retail at
that time.
18 US shutdown ends as Obama signs bill
Oct World > US Shut Down
US President Barack Obama signed the "Continuing Appropriations Act, 2014," which provides fiscal year 2014
appropriations for projects and activities of the Federal Government through January 15, 2014. The effective
time for the continuing resolutions begins on October 1, 2013. The signing put an end to the 16-day US
government shut down and increased the debt ceiling to 16.7 trillion USD through February 7, 2014. The bill
was passed just in time since the US was close to exhausting its borrowing power and heading for a debt
default.
20 China's arms industry makes global inroads
Oct World > China
China’s foreign arms sales have seen a rapid growth. Chinese exports have nearly doubled over the past five
years to $2.2 billion, surpassing Canada and Sweden, making China the world’s eighth-largest exporter by
value.
In the past, Chinese companies have been known mainly as suppliers of small arms, but that is changing
quickly. From drones to frigates to fighter jets, they are aggressively pushing foreign sales of high-tech
hardware, mostly in the developing world. Industry executives and arms-sales analysts say the Chinese
probably beat out their more established rivals by significantly undercutting them on price.
China’s investment has been heaviest in fighter planes, both traditional and stealth versions, as well as in jet
engines, an area in which China had until now been dependent on Western and Russian partners. New
customers for Chinese equipment include Argentina, which in 2011 signed a deal with the Chinese company
Avicopter to build Z-11 light helicopters under license.
GKCA Update
1st to 31st Oct
21 BHP Billiton exits Indian projects
Oct Corporate > BHP Billiton
The world's biggest miner BHP Billiton will exit most of its Indian oil and gas projects. BHP said its operations in
the country were often blocked by delays in permits from India's defence ministry.
India is looking to attract foreign investment in a fresh round of energy block auctions in January 2014.
BHP Billiton now joins the list of foreign giants abandoning India because of overly restrictive regulations that
includes names like Wal-Mart, Posco and Arcelor Mittal.
22 UK nuclear power plant gets go-ahead
Oct World > Britain
The British government has signed a $26-billion deal with French energy giant EDF to build two reactors at
Hinkley Point C. French group Areva and Chinese nuclear firms CGN and CNNC are also involved in the
contract. Hinkley Point C will be the first new nuclear power plant in the UK in 20 years. Also, it will be the first
new nuclear contract in Europe since the 2011 Fukushima disaster.
The project is aimed at providing Britain with secure and reliable low-carbon electricity, and will create
thousands of jobs.
23 Attorney General says RTI will cover political parties
Oct Politics and Government > RTI Act
Attorney general G E Vahanvati opposed the bill that is pending in parliament which seeks to keep political
parties outside the scope of the Right to Information Act. Vahanvati appeared before Parliament's standing
committee on departments of personnel, public grievances, law and justice and stated that political parties
should accept the Central Information Commission's June 3 ruling bringing them within the purview of RTI Act.
He disregarded the argument that subjecting them to RTI would render political parties vulnerable to
harassment or embarrassment. He also said that political parties could individually challenge the CIC order in
higher courts.
BJP had opposed the bill which was brought to negate the CIC order, resulting in the matter being referred to
the standing committee.
25 Singtel gets approval for 100% stake in Indian telecom company
Oct Corporate >Singtel
Singapore’s SingTel proposal to increase its stake in its local unit from 74% to 100% for Rs 2.98 crore was
approved by the Foreign Investment Promotion Board (FIPB) last week. As a result of the approval, SingTel
became the first foreign company to entirely own an Indian telecom unit. The company can now buy stakes
from its Indian partners, including Bharti Enterprise which holds about 9.9% stake in SingTel’s Global (India)
according to the proposal.
28 Precious metals, minerals found at Bundelkhand
>Precious Metals In Bundelkhand
Oct India
A treasure trove of metals and minerals worth atleast Rs 4,000 crore has been found by the department of
mineral and mines in Bundelkhand. Gold deposits have also been found at Sonbhadra in eastern Uttar Pradesh.
According to the mining directorate's report, Bundelkhand has deposits of gold, platinum as well as minerals
like asbestos, silica, potash used for industrial purpose worth more than Rs 1,000 crore. The seven districts of
GKCA Update
1st to 31st Oct
Bundelkhand, Jhansi, Mahoba, Jalaun, Banda, Hamirpur, Lalitpur, Chitrakoot, may soon become a potential
revenue mine for Uttar Pradesh. For the first time presence of such minerals have been confirmed in the state
and UP may soon make it to the list of mineral generating states in India.
28 8 blasts at Modi's rally in Patna, 2 arrested and 10 detained
Oct India > Patna Blasts
In an opposition rally in northern state of Bihar, the crowd was attacked with bombs. The blasts killed 6 people
and left 102 injured. 6 of the bombs went off inside and near a park where Narendra Modi was to deliver a
speech. The remaining two blasts took place at Patna junction inside a public convenience complex. 2 men
including the main accussed have been arrested and 10 people have been detained in connection with the
blasts.
29 Top Al Shabaab militant killed in Somalia drone strike, PM Nawaz Sharif
Oct urges Obama to end drone strikes on Pakistan
World >Drone Strikes
In a recent drone strike in southern Somalia a senior militant in charge of suicide attacks for al-Qaida-linked alShabaab rebels has been killed. The militant, Ibrahim Ali Abdi also known as Anta Anta and who well known for
making car bombs and suicide bomber vests, was being tracked by Somali intelligence for quite some time
before he was killed in the strike. A UN-mandated African Union force has driven Al-Shabaab out of Somalia's
major towns including the capital Mogadishu. But the militant group still controls a large part of southern
Somalia.
Nawaz Sharif, Pakistani PM spoke to Obama about ending drone strikes in Pakistan. Relations between US and
Pakistan were strained following certain events like the Navy Seal raid in 2011 in which Al Qaida chief Osama
Bin Laden was killed in his hiding place in Pakistan and the NATO air strike also in 2011 in which Pakistani
border guards were mistakenly killed. Obama in turn acknowledged that there were misunderstandings and
tensions between both the countries and said that he and Sharif had pledged to resolve security together in
ways that respect Pakistan's sovereignty.
29 NSA spying on top leaders, white house to review intelligence collection
Oct programs
World >NSA
Germany's interior minister said that his confidence in the US had been shaken following reports of the U.S.
National security agency monitoring Chancellor Angela Markel's cell phone for more than 10 years. Mrs Merkel
demanded a complete explanation for the incident. Obama in turn stated that her phone was not being spyed
on at present and assured her that it won't happen in the future either.
There were reports that phones of 35 word leaders had been monitored. Swedish Prime Minister Fredrik
Reinfeldt as well as Italian PM Enrico Letta said that eavesdropping on the leader of an ally was unacceptable.
France, where several phone calls were spied by the NSA, and Germany want to hold talks with the US by the
end of this year to settle the issue.
The white house acknowledged that the spying carried on by the NSA in various nations was wrong and stated
that more constraints are needed to ensure that the agency's practices do not breach privacy. Obama may also
ban spying on leaders of American allies, administration and congress officials.
GKCA Update
1st to 31st Oct
Corporate
04 Jet-Etihad deal gets SEBI nod
Oct Jet-Etihad Deal
The Securities Exchange Board of India (SEBI) has approved the Etihad Airways’ plan to buy a 24% stake in the
Jet Airways as both carriers revised their deal to comply with conditions set by the market regulator.
SEBI was of the opinion that the Rs 2,058 crore transaction would not trigger a mandatory open offer for
purchase of shares from public shareholders and that Etihad would not be considered as a promoter entity in
Jet Airways. Jet promoter Naresh Goyal would eventually have a 51% stake in the company, Etihad 24% and
the public shareholding of the remaining 25%. Apart from this, Etihad will give Jet Airways $300 million as lowcost debt, pay $150 million for buying a share in Jet's frequent flyer programme and get three slots of Jet at
London Heathrow for $70 million, making the overall deal size as $ 900 million.
Etihad will now take 2 seats on the 12 member board instead of 3. Naresh Goyal, besides appointing 4 board
members, will have the right to nominate the chairman, whereas Etihad will appoint a vice-chairman. Jet has
also dropped the clause from its earlier application of shifting revenue management to Abu Dhabi.
It is the first foreign investment in India's airline sector since ownership restrictions were eased in 2012.
04 Twitter Files for IPO, but still not profitable
Oct Twitter IPO
Twitter Inc.’s initial public offering documents suggested a valuation of $12.8 billion for the microblogging
service. Twitter will be offering up 472 Million shares of stock in this initial release. It said that it currently has
218.3 million monthly active users, and those users have created over 300 billion tweets.
Twitter’s revenues have been revealed for the first time, as well. Revenues for 2012 were $316.9 million, for a
loss of $79.4 million and in the first half of 2013 they’ve already earned $253.6 million for a loss of $69.3
million. Overall, Twitter has lost $418.6 million since it began.
Twitter has gained over 900 employees in the year since June 2012, an increase of 90 per cent over last year. It
currently employs over 2,000 people.
18 HSBC hit with $2.46bn fine
Oct HSBC
A unit of HSBC Holdings has been hit with a $2.46 bn fine in a US securities class action lawsuit against a
business formerly known as Household International. The judgment was the largest in a securities fraud class
action that went to a trial. The suit was filed in 2002 when it was alleged that Household International and its
top management made false and misleading statements that inflated the company’s share price.
21 JPMorgan to pay $13bn to settle probes; Also pays $100 mn ‘London Whale’
Oct fine
JP Morgan Chase
JPMorgan Chase has almost reached an agreement to pay a record $13 billion fine to the Justice Department
to settle probes into its residential mortgage-backed securities. It would be the largest amount ever paid by a
US company in this type of settlement with the government. JPMorgan has been under investigation by
several US regulatory agencies.
GKCA Update
1st to 31st Oct
In a settlement with the US Commodity Futures Trading Commission, the bank agreed to pay $100 million and
admitted that its traders acted recklessly. The settlement follows one month after it paid $920 million to four
other US and British regulators to resolve probes of the bank's $6.2 billion in derivative losses involving its
chief investment office.
24 Jet Airways losses touch Rs. 891 crore
Oct Jet Airways
Jet Airways, run by Naresh Goyal recorded a loss of Rs. 891 crore in the september quarter due to various
reasons like poor market conditions, economic slow down, fall in rupee, high fuel prices as well as grounding of
some of its aircraft and increases in airport charges at select domestic airports. Last year in the same quarter,
the airline company had recorded a loss of Rs. 99.7 crore. Revenues were around 4,200 crore
24 TATA – Singapore airlines joint venture gets FIPB approval
Oct TATA-Singapore Airlines
The airline venture proposed by the Tata group with Singapore Airlines got approval from the Foreign
Investment Promotion Board (FIPB) last week. The proposal entails foreign direct investment (FDI) of $49
million. Tata SIA Airlines Ltd, Tata Sons will hold 51% stake and Singapore Airlines will hold 49%. The venture is
expected to have a $100 million investment. It has also got the corporate affairs ministry's approval to use the
name Tata SIA Airlines and has got itself registered.
Tata SIA will launch operations as a full-service air carrier in India by next year after it gets all the clearances
required. Tata has also announced that it has another venture with Malaysia's AirAsia in the pipeline which will
be a low-cost carrier. That venture was approved by FIPB earlier in April.
30 Rs 215 crore penalty on Infosys against visa fraud case in US
Oct Infosys
Infosys has agreed to pay around Rs 215 crore as penalty in a settlement against allegations by the US justice
department regarding visa fraud. Infosys acknowledged receiving a federal grand jury subpoena seeking
records related to its sponsorships for B-1 business visas and its use of them. Infosys was accussed of using B-1
visas to bring an undisclosed number of staff to work in the US for long term instead of getting H-1B work visas
which are hard to get.
31 Indian-born Gurdeep Singh Pall named next VP at Skype
Oct Microsoft
Microsoft has announced that software engineer Gurdeep Singh Pall, an Indian national from Chandigarh, will
be the next corporate vice president of Skype. 46 year old Pall did his schooling in Chandigarh and graduated in
computer science from BITS Pilani and did his masters in computer science from the University of Oregon. He
joined the company as a software design engineer and is now working as corporate vice president at Microsoft
and heads the experience team and information platform in Microsoft's new applications and services division.
Pall was named one of the ‘15 Innovators & Influencers Who Will Make A Difference’ in 2008 by Information
Week.
GKCA Update
1st to 31st Oct
Economy
07 Inflation Control - RBI Hikes Repo Rate, Reduces Marginal Standing Facility
rate
Oct Inflation Control Measures
RBI unexpectedly hiked short-term lending (repo) rate by 0.25 per cent to 7.5 per cent as it kept its focus on
controlling inflation, which it felt would be above the expected levels in the current fiscal. The hike is effective
immediately.
However, in his maiden policy review, RBI Governor Raghuram Rajan eased liquidity through a reduction in the
Marginal Standing Facility (MSF) rate by 0.75 per cent to 9 per cent.
Normally, the MSF rate is 100 bps higher than the repo rate. RBI's latest move narrowed the gap to 150 bps.
The Cash Reserve Ratio (CRR) has been kept unchanged at 4 per cent.
29 Repo rate increased to 7.75% and MSF decreased by RBI
Oct Repo Rate
The RBI increased the repo rate, at which RBI lends to banks, to 7.75%. The MSF was cut to 8.75% which
restored the gap between the two to 100 bps. 1 basis point is equal to 0.01 percentage point. These measures
are being taken to curb inflation during this period of weak growth and to ease the availability of cash. The
cash reserve ratio and statutory liquidity ratio were retained at 4% and 23%, respectively.
India
03 Indian troops fight Pakistani militants in Indian administered Kashmir
Oct Kashmir
On 24th September, in Shala Bhata, an abandoned village near the LOC, Indian soldiers came across some 40
armed Pakistani militants who had crossed the Line of Control (LoC), which divides Kashmir. The Indian army
has been fighting them for more than a week and till now, around 10-12 militants have been killed. Some of
the militants who escaped the earlier confrontation barged into a police station and an army camp in the
Poonch area of Indian-administered Kashmir which led to clashes that left 10 people dead.
Pakistan denied India’s claim stating it as a lie.
06 2G Spectrum Auction – Telcos that lost permits may not be allowed to bid
Oct 2G Spectrum Auction
Telecom companies whose 2G permits were cancelled by the Supreme Court may not get another chance to
bid for spectrum in the next round of auction, according to official sources.
Inter-ministerial panel Telecom Commission has accepted the recommendation to remove the eligibility rule
that allowed such companies to participate, the sources said.
The Supreme Court had cancelled 122 telecom licences in the 2G spectrum allocation case last February. They
covered 22 licences of Uninor, 21 of Loop Telecom, 21 of Sistema-Shyam, 15 of Etisalat DB, 6 of S Tel, 21 of
Videocon, 3 of Tatas and 9 of Idea Cellular.
GKCA Update
1st to 31st Oct
08 Weak manufacturing and services sector leads to cut in India growth
estimate to 3.75% by IMF
Oct IMFs Projected Growth Rate
The IMF has revised the projected growth rate for India in 2013 to 3.75% from 5.7% citing poor demand due to
monetary tightening, weak performance by manufacturing and services sectors. It also said that the Indian
economy needed steps to address inflation pressure from capacity constraints and the recent currency
depreciation. The projected growth rate for the fiscal year 2014 is 5%.
India’s growth rate was 3.2% in 2012 and 6.3% in 2011.
10 NSEL Scam- Two arrests made
Oct NSEL Scam
The Mumbai Police made two arrests in the Rs 5,600-crore National Spot Exchange (NSEL) scam by taking into
custody Jay Bahukhundi and Amit Mukherjee, who were AVP’s at the crippled spot exchange.
Background:
NSEL scam is a Rs 5600 Cr fraud in which the National Spot Exchange Ltd failed to pay out its investors in
commodity pair contracts after 31 July 2013. It was subsequently found out that most of the underlying
commodities did not exist and buying and selling of commodities like Steel, Sugar, Ferrochrome etc. was being
conducted only on paper.
As an effect of the NSEL fraud the share prices of its promoter company FTIL have crashed by 60-70 % resulting
in a massive erosion in market cap. The share prices of sister company MCX (Multi Commodity Exchange Ltd)
also took a massive beating.
10 Power sector strike called off in Andhra Pradesh, Ministers on fast as a sign
of protest
Oct Telangana
The strike by power sector employees was called off after reports of the approaching cyclone Phailin. They
were on strike to protest against creation of Telangana. The strike led to widespread blackouts in many parts
of the state.
Jagan Mohan Reddy, a member of the opposition party was forcibly taken to a hospital in Hyderabad after
being on a hunger strike. His blood sugar level had dropped and kidneys were getting affected. Similarly,
Chandrababu Naidu, leader of Telugu Desam party and former chief minister of state, was also forcibly evicted
from Andhra Pradesh Bhavan and taken to a hospital on the 5th day of his indefinite fast. However, he
continued his fast in the hospital as well.
10 Aadhar card to facilitate mobile transfer of funds
Oct Aadhaar Card
Bank account holders can now transfer through mobile banking by entering their aadhar card number.
Customers now only need to have their bank a/c linked to their aadhaar card and need to be registered for
mobile banking services. National Payments Corporation of India launched this facility and says it can be used
to make microtransactions. Transactions can be carried on through SMS or mobile apps (amounts > Rs. 5000/-)
Till now ebanking required pre enrollment of the person using it under the internet banking service. And
mobile banking required the bank a/c no and branch IFSC code of the person using it.
GKCA Update
1st to 31st Oct
11 IITs taking faculty hiring seriously, huge start up grants being offered
Oct IITs
Start-up grants, incentive schemes, special young faculty awards and job scouting for spouses, setting up
faculty search committees and fast-tracking the hiring process are some of the major steps the premier
engineering institutes are taking to ensure better infrastructure and research prospects. In a first of its kind, IIT
Kanpur has opened a new office in New York. IIT Roorkee has created a global network of researchers and
foreign faculty members to give leads on bright candidates willing to relocate and work in India.
Over 40% of the teaching slots in the older IITs are lying vacant. Recruitments have not kept pace with the
huge expansion in the number of seats because of the 27% OBC quota implementation. The teacher-student
ratio at most of the older IITs averages 1:15, as compared to the ideal 1:10 ratio.
15 CBI files corruption case against Kumar Mangalam Birla
Oct Coal Block Scam
CBI has registered a corruption case against Aditya Birla Group chief Kumar Mangalam Birla and former Coal
Secretary P C Parekh in connection with alleged irregularities in allocation of coal blocks in 2005. Naming
Kumar Mangalam Birla in the chargesheet that specifically mentions cheating and forgery has led to a
significant decline in the share prices of Hindalco Industries, an Aditya Birla Group subsidiary. Prominent
business leaders including Deepak Parekh and Ajay Piramal criticized the development. Illegal coal block
allocation scam was brought to light by the Comptroller and Auditor General (CAG) in September last year.
16 Rs. 600 crore penalty on idea for violating telecom license conditions
Oct Telecom Sector
The telecom department had given instructions in January 2010 that the merger of Idea Cellular with Spice
communications was not legally permissible since it violated the cross-holding norms where Idea cellular,
acquired a 41.09% stake in Spice communications. Still they went ahead with the merger which according to
the panel is a ‘wilful’ violation of the telecom license conditions.
Idea had bought into Spice in 2008 and had merged Idea Cellular in Punjab, Haryana, Delhi, Karnataka and
Maharashtra with six of the telecom permits of spice communications. Following this, show-cause notices
worth Rs. 300 crore were issued to Idea Cellular. This may now be increased to a penalty of Rs. 600 crores.
A telecom company or its promoter cannot hold equity of more than 10% in another telecom company in the
same service area according to the cross holding norms of the unified access service license (UASL)
17 India’s growth forecast cut down to 4.7% from 6.1% by World Bank
Oct Economic Growth Forecast
India’s economic growth forecast for the current financial year was cut from 6.1% to 4.7% by the World Bank.
In the first quarter of the current fiscal year, output growth fell to 4.4%. In the second half of 2013-14 growth
is expected to rebound strongly since core inflation is expected to trend down, depreciation in the rupee is
expected to positively influence exports and agriculture is expected to be a major contributor to the overall
growth. Agricultural growth was 1.9% last year and is expected to go upto 3.4% this year owing to a 5%
increase in area used for agriculture.
GKCA Update
1st to 31st Oct
18 Study says India is home to half the world’s modern slaves
Oct Global Slavery Index
According to Australia based Walk Free Foundation’s recently published global slavery index, India has around
13.3 to 14.7 million people who live like slaves in India out of the total 29.6 million people living like slaves
world wide. Then come China, Pakistan, Nigeria, Ethiopia, Russia, Thailand, Democratic Republic of Congo,
Myanmar and Bangladesh.
Iceland, Ireland and the United Kingdom have the lowest rankings in the index. The slavery index is the first of
its kind and ranked 162 countries based on 3 factors: child marriage, human trafficking in and out of the
country and an estimated prevalence of modern slavery which includes slavery, practices like debt bondage,
forced labour, forced marriage and sale or exploitation of children as well as grown up individuals.
India ranks fourth in terms of modern-day slaves as a percentage of the population, just after Mauritania, Haiti
and Pakistan.
The chairman of Fortescue Metals Group, Andrew Forrest and his wife Nicola founded WFF in May this year.
The index was created after consulting an international panel of experts.
18 World Bank all praise for India’s evacuation efforts before Phailin
Oct OSDMA
Odisha State Disaster Management Authority (OSDMA) and the Government of Odisha were praised by the
World Bank for their disaster preparedness and risk mitigation. Around 10 lakh people were evacuated in
Odisha and Andhra Pradesh following reports of the approaching fatal hurricane Phailin which ensured
minimal loss of human life. It involved planning, setting up evacuation protocols and volunteer teams, building
cyclone shelters, evacuation routes and strengthening coastal embankments well in advance.
In March 2011, a $255 million project called National Cyclone Risk Mitigation Project (NCRMP—Phase I),
financed by the International Development Association - the World Bank’s fund for the poorest, was started in
the states of Odisha and Andhra Pradesh. These investments are being used by the Government of India to
help communities during natural disasters and to help them prepare to cope with the changing climate system.
21 Saint’s dreams cause Gold rush in Uttar Pradesh
Oct Gold Rush
Uttar Pradesh was hit by a Gold rush after saint Soham Sarkar dreamt of gold hidden underneath the land of a
temple in Unnao. His astonishing claims have led to an excavation of the place by the Archeological Survey of
India. ASI, however, said that its decision to excavate the Unnao town is not on the basis of a dream, but on a
Geological Survey of India report. Security has tightened around the temple as thousands of onlookers
gathered at the site in curiosity.
The gold rush has attracted reactions from several politicians.
24 Manna Dey, the legend of the music world, passes away
Oct Music
Manna Dey, the legendary playback singer, died in a city hospital in Bangalore on 24th October. Dey was 94
years of age and was admitted to the hospital in May for respiratory problems. In his career span of 70 years,
he sang more than 3500 songs in 16 languages. He had received the Dadasaheb Phalke award, and the Vishesh
Maha Sangeet Samman.
GKCA Update
1st to 31st Oct
29 Air Marshal Arup Raha to take over as next IAF chief
Oct IAF
Air Marshal Arup Raha will be the next chief of the Indian Air Force, according to an announcement by the
government of India. Current Air Chief Marshal NAK Browne will retire on December 31, 2013. Air Marshal
Raha, currently the IAF vice-chief was commissioned into the IAF in December 1974 in the Fighter Stream.
Before this he commanded the Central Air Command and the Western Air Command and also served as the ir
Attache at the Indian embassy in Ukraine.
Politics & Government
02 Ordinance withdrawn by Indian cabinet-Convicted lawmakers face ban
Oct Ordinance
A Supreme Court directive earlier this year had banned convicted law makers from running for office. Later the
union cabinet cleared an ordinance to protect these convicted law makers from immediate disqualification.
Clashes between the Congress and the opposition parties followed and while PM Manmohan Singh was on an
unofficial US trip, Rahul Gandhi had stated that it was "complete nonsense" and "should be torn up and
thrown away".
On 2nd October, PM Manmohan Singh met Rahul Gandhi before a cabinet meeting to discuss the ordinance
following which the cabinet withdrew it. As a result, as per the Supreme Court ruling, convicted MPs and state
legislators will be barred from office if they have been sentenced to imprisonment for two years or more. In
compliance with this order two former minsters face disqualification from parliament since they have been
sent to prison in corruption cases.
03 Fodder Scam: Lalu Prasad Yadav Sentenced to 5 years in jail
Oct Fodder Scam
Lalu Prasad Yadav, former Bihar Chief Minister and RJD leader, was sentenced to five-year imprisonment with
a fine of Rs 25 lakh in one of the 'fodder scam' cases. Jagannath Mishra, another former Bihar Chief Minister
and sitting JD (U) MP was sentenced for four years with a Rs 2 lakh fine. Six other politicians and four IAS
officers were also sentenced to prison terms for fraudulent withdrawal of Rs 37.7 crore.
Science and Technology
02 Google in the midst of accusations of wiretapping
Oct Google
Google has once again been accused of illegal wiretapping and this time two separate cases have been filed
against the company. According to the plaintiffs, Google has been gathering information about users by
collecting data through gmail and street view by accessing emails. The data is then used to display ads
accordingly. As a result, emails of those who use gmail or those who send or receive mails from gmail users are
accessed. Google has said this is just a normal process like detecting spam, viruses. According to google, users
agreed to such usage of data by accepting Google's terms of service and privacy policy.
A US Judge denied Google's motion to dismiss the case. She stated that Google is illegally accessing user
information, storing it and then using it to display related ads and that the process was not related to
transmission of emails. She also dismissed Google’s argument that non gmail users had no expectation of
GKCA Update
1st to 31st Oct
privacy when corresponding with Gmail users. The out-come of this case will have long term consequences on
all email services.
08 World’s first malaria vaccine developed by GlaxoSmithKline
Oct Malaria Vaccine
RTS, S - the world’s first vaccine has been developed by GlaxoSmithKline. GSK will be submitting a regulatory
application to European Medicines Agency (EMA) in 2014 to get marketing approval. The vaccine has been
developed with funding from the Bill & Melinda Gates Foundation.
The trial involved 15,500 children in 7 countries in Africa. 18 months of follow up showed that malaria cases in
young children used in the trial have become half and that in infants has reduced by a quarter.
If EMA gives approval, World Health Organization (WHO) may recommend use of the vaccine from 2015 as an
additional prevention along with mosquito nets, insecticides and anti-malaria drugs. RTS,S will be priced at 5%
above cost, and the margin will be reinvested in malaria research.
Sports
29 Vettel wins Indian Formula One Grand Prix
Oct Indian Grand Prix
Sebastian Vettel won the recently concluded Indian Grand Prix at the Buddh International Circuit beating four
former world champions, Fernando Alonso, Lewis Hamilton, Kimi Raikkonen and Jenson Button. This is his third
consecutive victory in the Indian Grand Prix, 10th victory of the season and 36th of his career. He's the third
driver in history to win four Formula one world titles in a row.
World
04 Lampedusa Boat Wreckage: Death toll reaches 220
Oct Italy
At least 220 people have died and up to 100 are feared drowned after a ship carrying African migrants toward
Italy caught fire and sank off the Sicilian island of Lampedusa. A three-year-old boy, a two-year-old girl and two
pregnant women are among those said to have died. So far 159 people have been rescued, but the boat is
believed to have been carrying as many as 500 people. A Tunisian man, the alleged skipper of the Lampedusa
boat, is being held in Sicily, suspected of manslaughter.
07 Mass evacuation in eastern China as Typhoon Fitow hits eastern China
Oct Typhoon in China
The Fujian province in eastern China has been affected by typhoon ‘Fitow’. The authorities had issued a red
alert before the typhoon hit the coast and around 1.7 Lakh people had been evacuated. Winds up to 151km/h
(93mph) were reported.
In nearby Zhejiang province some 574,000 people had to leave their homes and economic damage of over
$330m has been reported. The storm caused heavy rain and widespread power cuts. Bullet trains and coach
services in several cities in the area were suspended. Dozens of flights to and from Wenzhou airport in
Zhejiang were cancelled.
GKCA Update
1st to 31st Oct
10 Janet Yellen – First woman to head Federal Reserve
Oct Federal Reserve
Janet Yellen, was nominated by Obama to head US Federal Reserve. The Federal Reserve is the equivalent of
India’s RBI, and is one of the most influential financial positions in the world. It is the first time that a woman
will be occupying this position.
Yellen has a doctorate in economics from Yale University, she has taught at UC Berkeley, London School of
Economics and Harvard University, was the chairperson of President Clinton's Council of Economic Advisers in
1997-1999, she was the President and CEO of the Federal Reserve Bank of San Francisco (2004-2010), before
she moved to the Bank’s Board of Governors as vice-chairperson in 2010. She is married to Nobel Prize winning
economist George Akerlof.
15 Al Qaeda suspect held by US
Oct Libya
Earlier this month, U. S. forces had seized a man named Anas al-Liby in Tripoli, one of the most wanted
terrorists in the world. His real name is Nazih Abdul-Hamed al-Ruqai and he is accused of having links with Al
Qaeda and has been indicted in the 1998 American Embassy bombings in East Africa. He has been transferred
to US and will face charges in New York.
16 Obama seeks for solution on govt. shutdown impasse
Oct US Shut Down
The US government impasse is continuing. The Republicans have proposed increasing the debt ceiling by six
weeks so that negotiations can continue. President Obama is insisting on a longer term solution. If a solution is
not found, the first ever US govt. default may happen by the end of October.
22 Report by Amnesty International says killings by US drone strikes in Pakistan
Yemen are unlawful
Oct and
US Drone Strikes
According to a recent report by Amnesty International, the drone attacks in Pakistan by the CIA are responsible
for unlawful killings, some of which could amount to war killings. The human rights group reviewed 45 recent
drone strikes and found that a number of the victims were unarmed. In the 6 drone strikes carried out in
Yemen, two of them killed around 57 civilians at random. A UN investigation has revealed that at least 400
civilians have been killed in Pakistan in drone strikes, more than US has ever acknowledged.
US in the pursuit of al-Qaeda and Taliban has started using drone warfare quite regularly. And few details are
known about the drone warfare conducted by Central Intelligence Agency and not by military where they use
unmanned aircrafts operated remotely from control rooms, often on other continents. The group asked the US
to disclose information and the legal basis for strikes carried out in Pakistan. The secrecy that the US maintains
about the strikes deters victims from getting compensation or justice since no US official can be held
accountable for the unlawful killings by drones in Pakistan.
22 NSA spying report – Obama discusses privacy issue with French President
Oct NSA
According to recent reports, over 70 million phone calls in France were spied on by the NSA from 10th
December, 2012 to 8th January, 2013. In just 30 days phone calls of Officials, businesses and terror suspects
GKCA Update
1st to 31st Oct
were tracked. Texts were also accessed based on key words. Similar programs were in operation in Germany,
Brazil, Mexico and Britain.
French President, Francois Hollande expressed disapproval over the same and stated that such an intrusive
program by a friend and ally was unacceptable and asked US for an explanation. Following this, President
Obama had a telephonic conversation with him and assured him that US is reviewing its intelligence-gathering
system to make sure that balance between privacy and security is maintained. The reports were based on
documents leaked by former NSA contractor Edward Snowden.
23 Over 10 mn BBMs downloaded by non BlackBerry users in just 24 hrs
Oct BBM
BlackBerry Ltd announced that BBM - its popular chat application designed for Apple Inc smartphones and
Android-based handsets was downloaded by more than 10 million users within the first 24 hours of its relaunch. On Apple's App store, BBM rose in the free app rankings and made it to the number one slot in over 75
countries which include US, UK, Canada, Middle east. The app has got extremely positive reviews on Google
play store getting 60,000 five star reviews out of the 87,000 reviews as well as positive reviews on the App
store. Earlier in September, Blackberry had paused the global roll out of the app owing to delay caused by an
unreleased old version of BBM.
31 $ 34 m fine on Infosys to be paid as settlement to avoid affecting future
visas
Oct Infosys
US recently announced that Infosys committed visa fraud by knowingly and unlawfully using employees
holding B-1 visas for skilled labour allowed only for H-B visa holders. Infosys was also accused of submitting
materially false representations regarding the purpose of travel of its employees holding B-1 visas to the US.
Infosys however denied and disputed the allegation in a settlement claiming that its use of B-1 visas was for a
legitimate purpose and not to circumvent the requirements of the H-1B program.
The company however accepted that it committed civil violations and agreed to pay $ 34 million in fines in
order to escape a protracted legal battle that may have involved criminal proceedings.
GKCA Update
1st to 30th Nov
Starred Articles
01 Google launches Android software, KitKat
Nov Science & Technology > KitKat
Google Inc launched Kit Kat, the newest version of its Android smartphone software, which allows more
smartphone users to access its online services like driving directions and voice-activated search. The new
version of the OS will be able to run on both inexpensive, low-end smartphones as well as the most advanced
devices. This may help google by ensuring that more users gain access to profitable online services.
Google also displayed Nexus 5, the smartphone which will be the first device to feature the KitKat software.
The phone, built by LG, will be available in 10 countries for $349.
04 £3,000 visa bond scheme to be scrapped by UK
Nov World > UK Visa Bond Scheme
Britain has decided to abandon its controversial plan to impose a £3,000 immigration bond on visitors from
"high-risk" countries in Africa and Asia. The scheme if introduced would have been applicable to visitors from
India, Pakistan, Bangladesh, Sri Lanka, Nigeria and Ghana. The fee would be over and above the existing visa
costs. The bond was to deter over stayers as part of the government's intention to reduce the number of
immigrants to less than 100,000 per year. An applicant would have to forfeit the amount unless they left when
required.
India, which was also targeted with the bond, had lodged strong protests with outrage from all corners of the
country. And being the third largest investor in the UK in 2011, the protests were a major reasons for Britain's
U-turn over the plan. The decision was also influenced by Britain's deputy prime minister Nick Clegg
threatening to block the policy and opposition other top British Bureaucrats.
05 BlackBerry sale called off, CEO John Chen to sell software and not devices
> BlackBerry
Nov Corporate
BlackBerry mobile handsets may soon cease to exist since BlackBerry’s new chairman and interim chief
executive, John Chen wants to sell software and services and not mobile devices. It could mean that the
company might stop selling smartphones.
BlackBerry's largest shareholder, Fairfax Financial, with a 10 percent stake, said it won't buy the struggling
smartphone company and privatize it. Instead as part of a revised investment proposal, Fairfax and other
investors will put in $1 billion.
More than 20 million users downloaded BlackBerry Messenger since it became available on Google's Android
and Apple's iOS platforms last month. John Chen wants to hire someone with a strong software and services
background as the CEO to help him monetize that.
06 PSLV C 25, 'Mangalyaan' Orbiter launched successfully by ISRO
Nov India > Mars Mission
Indian Space Research Organisation (ISRO)’s PSLV C 25 successfully launched the 1,350-kg 'Mangalyaan'
Orbiter ('Mars craft' in Hindi) into the orbit around Earth some 44 minutes after a text book launch at 2.38 PM
from the Satish Dhawan Space Centre here. At Rs 450 crore, it the cheapest mission to Mars.
GKCA Update
1st to 30th Nov
India's first Mars Orbiter Mission (MOM), is aimed at establishing India's capability to reach Mars and would
focus on looking for presence of methane, an indicator of life there. The mission would also explore Mars
surface features, morphology, minerology and Martian atmosphere by indigenous scientific instruments. The
satellite is expected to reach Mars’ orbit by September 2014.
06 US missions in Asia used for spying, Snowden to testify in investigations in
Germany
Nov World > NSA
According to media reports American and Australian embassies in China and Southeast Asia were being used
as hubs for Washington's secret electronic data collection programme. Following the report China and
Southeast Asian governments demanded an explanation from the US and its allies. In an intelligence
programme called "Stateroom" US, British, Australian and Canadian embassies secretly stored surveillance
equipment to collect data. These countries as well as New Zealand, have an intelligence-sharing agreement
known as "Five Eyes." Australian embassies involved are in Jakarta, Bangkok, Hanoi, Beijing and Dili in East
Timor; and High Commissions in Kuala Lumpur and Port Moresby, Papua New Guinea. Indonesia's foreign
minister strongly protested the wiretapping facilities at the US embassy in Jakarta.
Edward Snowden is willing to testify in German investigations into alleged U.S. wiretapping of Chancellor
Angela Merkel’s telephone, but cannot leave Russia because of U.S. “persecution”. He agreed to go to
Germany to help in the investigation of the phone tapping charges.
The United States is working towards improving intelligence cooperation with Germany but a complete "nospy" agreement between the two countries is not likely.
07 Cadbury loses trademarks of Chocolate Eclairs over dispute with ITC
Nov Corporate > Cadbury
Cadbury has lost three trademarks of its popular Cadbury Eclairs in a major case against ITC. Cadbury had filed
an injunction against ITC for marketing Eclairs confectionary along with its ‘Candyman’ trademark. ITC moved
Intellectual Property Appellate Board (IPAB), making a case that the trademark hasn't been used since 1994.
Cadbury, in defence, said Cadbury's Eclairs was registered as a trademark in India since 1974, and that it has
been continuously used since. They also have trademarks for Cadbury Chocolate Eclairs and Chocolate Eclairs
Pop. But the IPAB said that there was no evidence to prove Cadbury’s point and mere registration of the
trademark does not prove their use. It stands cancelled for a non-user.
08 Super Typhoon Haiyan strikes Philippines, around 10000 feared dead
Nov World > Philippines Typhoon
Super Typhoon Haiyan struck the Philippines on Friday, 8th Nov early morning with winds of upto 235 miles an
hour. It is thought to be the strongest storm to ever make landfall anywhere in the world in modern records.
An estimated 10,000 people are feared dead and nearly 620,000 people were displaced and 9.5 million
affected across nine regions. Relief operations were hampered because roads, airports and bridges had been
destroyed or were covered in wreckage. The death toll is expected to rise once more remote villages are
accounted for. President Benigno Aquino has ordered soldiers to Tacloban to fight looters, and may impose
martial law. About 90 U.S. Marines and sailors headed to the Philippines in a first wave of promised military
assistance for relief efforts. The United Nations and various other NGOs are also helping in providing relief
efforts in cash as well as in kind.
GKCA Update
1st to 30th Nov
09 Supreme Court stays Gauhati High Court’s order calling the Central Bureau
of Investigation (CBI) unconstitutional
Nov India > CBI
The Supreme Court has stayed the Gauhati High Court’s order which called the Central Bureau of Investigation
(CBI) as unconstitutional and has fixed December 6 as the date for the next hearing. The SC Court has said that
the judgement had to be stayed as the accused in two sensational cases, Sajjan Kumar and A Raja, have sought
stay of the trial. Around 9000 cases would have been affected as a result of the High Court’s judgement.
Meanwhile, Finance Minister P. Chidambaram cautioned the Central Bureau of Investigation (CBI) saying that
investigating agencies should draw a line between policy making and policing and functional autonomy didn’t
mean that the CBI was free from general rules. He further said that the CBI must investigate whether there
was any criminal intent before pressing charges in matters of financial crimes. Chidambaram also refuted
allegations that the CBI was impeded by the government for protecting its interests. His comments came a day
after Prime Minister Manmohan Singh said that the government will take all necessary steps to establish the
CBI’s legitimacy and protect its “past and future work”.
Background:
A division bench of the Gauhati High Court termed the CBI as illegal after quashing the April 1, 1963 home
ministry resolution setting up the agency under the Delhi Special Police Establishment Act, 1946. The
petitioner, a BSNL employee, questioned the existence of the CBI after the investigation agency filed a case
against him in 2001.
10 Marc Marquez becomes the youngest Moto GP champion
Nov Sports > Moto GP
Following a third-place finish at the season-ending Valencia Grand Prix, Spain's Marc Marquez became the
youngest Moto GP champion. He only needed to finish fourth to ensure that the 13-point lead he took into the
race could not be overhauled.
At 20 years and 266 days old, he beats the previous record set by American Freddie Spencer who won the
500cc title in 1983 when he was 21 years, 258 days old.
12 Rs. 2058 crore Jet-Etihad deal gets approval from CCI
Nov Corporate > Jet-Etihad Deal
The Jet-Etihad deal which had been pending approval for months has finally been approved by fair trade
regulator the Competition Commission of India (CCI). Under the deal Abu Dhabi-based Etihad Airways is
acquiring a 24% stake in Naresh Goyal-led Jet Airways for Rs. 2058 crore. This is the first-ever FDI (Foreign
Direct Investment) in an Indian carrier by an overseas airline.
13 Usha Ananthasubramanian named the first CEO of Bhartiya Mahila Bank
Nov Bank Specific > Bhartiya Mahila Bank
The finance ministry has identified Usha Ananthasubramanian, Executive Director (ED) of Punjab National Bank
(PNB), to be the first chief executive of Bhartiya Mahila Bank, which will launch its operations from November
with six branches.
Ananthasubramanian is leading the core management team (comprising employees from various public-sector
banks) set up to put in place the systems and processes necessary to start the bank's operations. The
GKCA Update
1st to 30th Nov
government will formally announce the name of the CEO after the Reserve Bank of India will have issued the
licence.
17 Axis Bank to be 'foreign-owned' after hike in overseas investments
Nov Bank Specific > Axis Bank
Axis Bank will become a foreign- owned lender, to be governed by FDI policy, following the go- ahead to its
proposed increase in foreign investment holding to 62 per cent, entailing inflow of over Rs 6,200 crore.
The proposal, recently cleared by the Foreign Investment Promotion Board, now requires go-ahead from the
Cabinet Committee on Economic Affairs as it envisages investment of over Rs 1,200 crore.
The lender seeks to raise foreign investment holding from the existing 49 per cent to 62 per cent.
Following the hike in stake by foreign investors the bank will become foreign-owned, whereby every future
investment in seven subsidiaries will be governed by the FDI policy, according to sources.
18 Sachin Tendulkar, CNR Rao get Bharat Ratna
Nov India > Bharat Ratna
Sachin Tendulkar received the Bharat Ratna, the country's highest civilian award. His cricketing career came to
an end after his 200th test match in Mumbai recently.
Eminent scientist Professor C N R Rao, the man behind India's Mars mission, also received the award. Prof. Rao
is former director of the Indian Institute of Science, Bangalore, and currently works at the Jawaharlal Nehru
Centre for Advanced Scientific Research in Bangalore. Rao also serves as the chairman of the 32 member
Science Advisory Council to the Prime.
18 HCL Infosystems to soon shut PC manufacturing business
Nov Corporate > HCL Infosystems
HCL Infosystems will soon stop manufacturing PCs. This move is expected to help them increase organizational
efficiency and improve margins by slowly phasing off its manufacturing business in the next few years. They
intend to focus on the distribution of PCs of multiple brands and after sales services. This move comes after
HCL Infosystem's PC business faced pressure as new devices like tablets, etc. gained popularity. PC makers in
the country have also faced losses due to the rupee's fluctuation against other currencies, especially the US
dollar since 90-95% of the components are imported.
HCL Infosystems has transferred its solutions, services and learning business to wholly-owned subsidiaries --HCL Infotech, HCL Services, and HCL Learning.
19 Spying by Australia damaged ties says Indonesian President
Nov World > Spying on Indonesia
Indonesian president, Susilo Bambang Yudhoyono, recently said that Indonesian ties with Australia have been
damaged following reports of spying on his phone calls and those of his ministers. He said that it was a hurtful
action and that Australia had belittled the row. He further stated that Jakarta would review its bilateral cooperation agenda with Australia.
The allegations published by Australian media came from documents leaked by whistleblower Edward
Snowden.
GKCA Update
1st to 30th Nov
21 Jet Airways- Etihad close deal worth Rs. 2,069-cr; stock rallies over 3%
Nov Corporate > Jet Airways & Etihad Deal
Jet airways and Etihad recently closed a deal worth Rs. 2,069 crores with Etihad picking up 24% equity in Jet
airways. This is the first Foreign Direct Investment by an airline in the Indian aviation sector. All the regulatory
approvals needed from Indian authorities have been secured by both the airlines.
22 Magnus Carlsen, Norwegian prodigy is new chess champion
Nov Sports > Chess
Magnus Carlsen, 22, Norwegian chess prodigy beat Indian title holder Viswanathan Anand and became the
world champion.
Carlsen, won the World Chess Championship in 10 games by securing a draw at the end with two left to play.
He won the match with a score of 6.5-3.5 in Chennai and has now achieved the highest rating of all time. He
just missed out on being the youngest player to win the title. The youngest player to win the title is Russian
Garry Kasparov who was younger by just a few weeks.
26 Narendra Modi shortlisted by Time for Person of the Year title
Nov Politics and Government > Narendra Modi
Time magazine shortlisted around 42 entrepreneurs, global leaders and celebrities for its 'Person of the Year'
title and Narendra Modi is one of them. He is the only Indian to be shortlisted. According to reports, in an
online poll he’s already one of the favorites among readers and is currently leading the poll followed by
Snowden. The winner will be announced next month. The list consists of people like US President Barack
Obama, NSA whistleblower Edward Snowden, Pakistani teenage education activist Malala Yousafzai, Amazon
CEO Jeff Bezos, the new heir to the British throne Prince George and even Chechen brothers Dzhokhar and
Tamerlan Tsarnaev, the suspects in the Boston Marathon terror bombings.
Time said that, Modi - the controversial Hindu nationalist and Chief Minister of the Indian state of Gujarat - is
the most likely candidate to unseat India's ruling Congress party in the world's largest democracy.
26 Aarushi Talwar case: Rajesh and Nupur Talwar get life imprisonment for
Murdering daughter and servant
Nov India > Aarushi Talwar Case
Rajesh and Nupur Talwar were sentenced to life imprisonment for murdering their daughter, Aarushi Talwar,
and their Nepalese servant, Hemraj Banjade. They were also found guilty of destroying evidence and
misleading investigators. Since forensic evidence was lost during investigations, the verdict was based on
circumstantial evidence.
In 2008, 14-year-old Aarushi Talwar was found murdered at home. Suspicion of the murder was on Hemraj till
his body was found on the roof of the Talwars a day later. According to prosecution, the wound on Aarushi’s
throat looked like the job of someone with medical skills and the victims had been hit by a golf club. Dr Rajesh
Talwar later tried to hide one of the golf clubs used in the murder but failed resulting in him being linked to the
murder and getting additional punishment for destruction of evidence. The Talwars' lawyers have said they will
appeal against the verdict.
GKCA Update
1st to 30th Nov
27 Tehelka journalist alleges sexual assault by founder-editor Tarun Tejpal
Nov India > Tehelka
A Tehelka journalist stated that she was sexually assaulted by the magazine's founder-editor Tarun Tejpal at
the ThinkFest in Goa. Following the complaint, Goa police issued a call letter to Tejpal and asked him to report
to the crime branch police station in Dona Paula, Panaji. If he failed to do so then a non bailable arrest warrant
would be issued against him. Tejpal however said that both the instances of sexual assault reported by the
woman were infact consensual.
After the incident, the victim did not press charges against Tejpal but mailed her complaint to Ms Chaudhary,
the managing editor. Following a lack of support from the organisation, the woman quit her job with Tehelka.
The reporter alleged that Ms Chaudhary's reaction to her complaint was prejudiced since she was more
concerned about protecting Tehelka.
4 other journalists also quit Tehelka due to dissatisfaction with the company’s reaction to the incident. Also,
Urvashi Butalia – noted feminist publisher, who was to preside over the Vishaka committee (the inhouse
Sexual Harassment Enquiry Committee) has refused to do so.
30 Tarun Tejpal, founder-editor of Tehelka arrested; Shoma Chaudhury resigns
as managing editor
Nov India > Tehelka
Tarun Tejpal the founder – editor of Tehelka magazine, accused of sexually assaulting a woman colleague, has
been arrested. The decision came just a day after Goa court gave relief to him barring the police from arresting
him. According to the victim she was sexually assaulted and the CCTV footage confirms this to a certain extent.
Tejpal will be sent for a medical check-up before being interrogated a she waits for a decision on his plea for
bail.
Before Tejpal’s arrest Shoma Chaudhury, managing editor of Tehelka magazine, resigned from her post. The
reason she gave was that she did not want questions raised about her integrity to tarnish the image of
Tehelka.
Awards
11 Venezuela's Gabriela Isler crowned Miss Universe 2013
Nov Miss Universe
Gabriela Isler, a 25 year old Venezuelan television presenter, has been crowned Miss Universe 2013 in Moscow
on Saturday, 9th November. Gabriela was picked from a total of 86 contestants at the show. Beauty pageants
are a major source of national pride in Venezuela and Isler’s win was the 7th Miss Universe win for Venezuela.
GKCA Update
1st to 30th Nov
Corporate
02 IBM India to seek judicial recourse following Rs. 5357 crore tax notice
Nov IBM India
After Indian income tax authorities issued a tax demand of over Rs 5,300 crore, the Indian branch of IBM said it
will seek judicial recourse. The notice issued by the IT department is a draft assessment order that IBM can
challenge.
According to the tax department IBM under-reported export revenues earned by it in the financial year 200809 from its facilities located in tax-exempt zones. IBM claimed that Information technology services companies
in India enjoy tax exemption on profits earned from export of software and related services. To avail the
benefits, the export facilities had to be located in Software Technology Parks of India. But the rule was
interpreted in different ways due to lack of clear definitions leading to disputes between the software industry
and the IT department.
05 Bharti Airtel will acquire Warid's operations in Congo
Nov Bharti Airtel
Bharti Airtel announced its agreement with the Warid Group to fully acquire its operations in Congo. Airtel is
the second largest telecom operator in Congo with over 1.6 million customers and Warid is the third largest
with around one million customers. The acquisition will help the telco in becoming the largest mobile operator
in the Republic of Congo with around 2.6 million customers. The company had acquired Warid’s Uganda
operations earlier this year.
Bharti Airtel Operates in 20 countries ranks fourth amongst the largest mobile operators the world over. It had
over 280 million customers by September 2013.
08 Kedaara Capital raises India’s largest maiden Private Equity fund of $550
million
Nov Largest Maiden PE Fund
Kedaara Capital, a private equity firm co-founded by former Temasek chief Manish Kejriwal and General
Atlantic Partners MD Sunish Sharma, has raised a $540-million (Rs 3,200-crore) fund, making it the largest
independent first-time fund ever raised for India. The huge fund proved that long-term providers of global risk
capital were beginning to re-enter India.
Former Hindustan Unilever CEO Vindi Banga, ex-Genpact CEO Pramod Bhasin and former Idea Cellular boss
Sanjeev Aga have been appointed as executive chairmen to take care of Kedaara’s investments. Kedaara
focuses on both buyout deals and large minority investments.
12 American Airlines and US Airways merger creates world's largest airline
Nov Mergers
US Airways and American Airlines have settled an anti-trust suit with US regulators, paving the way for their
proposed merger to be finalised. The merger would create the world's largest airline.
As a part of the agreement, the two airlines will each give up 57 slots to low-cost carrier airlines at Ronald
Reagan International Airport in Washington DC and 34 slots at LaGuardia Airport (LGA) in New York City.
GKCA Update
1st to 30th Nov
Earlier in August 2013, the US Justice Department had sued to stop the $11bn merger, arguing it would reduce
competition and result in higher prices for consumers.
14 Over 50% reduction in wholesale sales by value of Blackberry in India.
Nov Blackberry
Blackberry smartphone sales have sharply gone down in India. They were 70,000 units in the third quarter,
which is 55% lower than 1.5 lakh units it sold in the quarter before. The company has seen heavy losses and is
trying to work out a revival strategy.
The company introduced its latest devices (Q and Z series), working on its latest operating system, BB10. It also
reduced prices of its Z10 phone to Rs 29,990 from Rs 43,490. The sales still didn’t seem to be picking up.
14 Micromax will soon start assembling phones in India
Nov Micromax
Micromax has plans to start assembling phones in India in the beginning of next year. Till now it had tie ups
with manufacturers like Foxconn in China and was importing devices from there. Micromax has started
assembling phones in its plant, which employs around 400 people, in Rudrapur in Uttarakhand. Micromax has
plans to position itself as a global brand and it intends to enter Russia by December and Romania in the first
quarter of next year. With support from the Indian government and with the Rupee stabilizing the company
now has incentive for switching from China to India.
14 Sahara to sell London and New York hotels to Arab family for £1-billion
Nov Sahara Group
Sahara Group has put up its luxury hotels, Grosvenor House in London and Dream Downtown and The Plaza in
New York, for sale. Sahara had acquired the luxury hotels over the last 3 years and recently an Arab business
family interested in hospitality has made a £1-billion offer for all of them. If the deal is finalized Sahara will get
a profit of around Rs 4,000 crore, almost thrice the amount it invested in the hotels, after repaying its $1 billion
debt to Bank of China.
Sahara has been asked by the Supreme Court to refund, with interest, all the money raised from investors who
had subscribed to the optionally fully convertible debentures issued by two group companies worth more than
Rs 24,000 crore.
The court has also asked Sahara to deposit land title deeds worth Rs 20,000 crore with Sebi. In February this
year, the regulator had directed the attachment of bank accounts and property of the two Sahara companies
as well as Roy's personal assets.
17 At Dubai airshow orders worth $ 100 million for Boeing
Nov Gulf Airlines
On the first day of the Dubai airshow gulf airlines placed orders worth over $100 billion. Maximum orders were
for the newly launched boeing 777 jet previously codenamed 777X followed by Airbus's A380 superjumbo.
Emirates led the buying spree by placing an order for 150 of Boeing's new 777 mini-jumbo, in a deal worth $76
billion at list prices. It also ordered 50 Airbus A380s, the world's biggest passenger plane, in a deal worth $23
billion.
Demands from Etihad Airways, Qatar Airways and Lufthansa for the new 777 jet has led to Boeing committing
to a total of 259 of the new 777 jet. This is the largest combined order in its history.
GKCA Update
1st to 30th Nov
18 Etihad Airways: Europe flights deal is 'win-win scenario'
Nov Etihad – Europe Flights Deal
Etihad Airways based in Abu Dhabi bought a 33.3 percent stake in Darwin Airline and will become the first Gulf
carrier to have its brand flying between European destinations. The small Swiss regional carrier will rebrand its
own planes as 'Etihad Regional'. Once the deal receives regulatory approval, the acquisition will be completed.
Etihad has also received regulatory approval to acquire 24 percent stake in India's Jet Airways and it will
acquire 49 percent of Air Serbia from January 2014.
21 US jury orders Samsung to pay Apple $290 million
Nov Samsung - Apple
Samsung Electronics was ordered to pay Apple $290 million by a Silicon Valley jury for copying important
features of the iPad and iPhone. The verdict covers 13 older Samsung devices that a previous jury found were
among 26 Samsung products that infringed Apple patents. The previous jury awarded Apple $1.05 billion. But
US District Judge Lucy Koh ordered the new trial and tossed out $450 million of the damages after concluding
the previous jury miscalculated the amount Samsung owed.
Apple has argued in courts, government tribunals and regulatory agencies around the world that Samsung's
Android-based phones copy vital iPhone features. Samsung is fighting back with its own complaints that some
key Apple patents are invalid and Apple has copied Samsung's technology. A third trial is scheduled for March
to consider Apple's claims that Samsung's newest devices on the market also copied Apple's technology.
28 Rs 24K cr investment turns into sunk capital due to de-allocation of 11 coal
blocks
Nov De-allocation of Coal Blocks
The allocation of 11 captive coal blocks to 18 companies was cancelled by the government. This may cause the
Rs 24,000 crore investments into the development of these mines to turn into sunk capital. 12 other firms are
bearing the brunt of financial penalties in the form of forfeiture or deduction in their bank guarantees which in
turn means revenue outgo of a few hundred crore rupees for them. The firms include JSPL promoted by
Naveen Jindal, Birla Corporation, SAIL, Rungta Mines and Monnet Ispat and Energy. The worst hit is Monnet
Ispat and Energy. Later come JSPL, Birla Corporation and Sunflag Iron and Steel and Dalmia Cement JV.
29 Google might be fined for breach of Dutch privacy laws
Nov Google
Google has been accused of breaching Dutch law on personal data protection since the introduction of its
privacy policy last year by a privacy watch dog. The watchdog stated that Google does not provide adequate
information to users about it combining users’ personal data from different services including surfing multiple
websites to personalize services like YouTube and to tailor ads. It added that consent, required by Dutch law,
for the combining of personal data from different Google services cannot be obtained by accepting general
(privacy) terms of service.
Where as a Google spokesman said the company's privacy policy respects European law and allows them to
create simpler, more effective services. In March 2012, Google had unilaterally imposed new terms of service
on users of all its cloud services, which include the YouTube video streaming site, the GMail email service, and
the Google search engine.
GKCA Update
1st to 30th Nov
The Dutch Data Protection Authority, or DPA, asked Google to attend a meeting to discuss its concerns, after
which it would decide whether to take any action against Google, which could include fines.
Economy
20 Banks capture retail broking segment as traditional brokerages struggle to
survive
Nov Brokerage
Brokerage firms in India are having a tough time as banks try to cash in on the opportunity. The advent of
electronic trading in the mid-90s as well as internet and mobile applications now are posing tough challenges
to broking houses. Famous brokerage firms such as Motilal Oswal, Anand Rathi and Edelweiss have survived
but they are now operating on extremely low margins due to surge in costs on human resources. HSBC and
India Infoline, both were forced to wind up their retail broking business. Nearly 600 brokers and over 26,500
sub-brokers have shut shops since April 1, 2011. On the other hand, banks like ICICI, Axis and HDFC Bank are
thriving in the business. These banks offer investment and trading account to all their savings bank account
holders and advise better based on strong fundamental and technical research. Many customers do not feel
the need to go to a retail brokerage as banks are offering customers the facility to trade and invest in stocks,
bonds, fixed deposits, mutual funds and gold at the click of the mouse. The trust factor, because of the fact
that none lost money with a bank, also helps.
21 IFC raises Rs 1,000 cr from maiden rupee bond sale
Nov IFC
International Finance Corp (IFC), raised Rs 1,000 crore, by selling of rupee-denominated bonds under a $1
billion programme for the first time. The programme is designed to help deepen India’s capital markets. In
India, the debt market was restricted for certain class of foreign investors, one had to acquire auction quotas
to invest. The programme is intended to develop a rupee-denominated bond market offshore where, other
issuers can raise funds. Also, an offshore market would attract long-term investors who prefer to hold rather
than those who look for quick returns.
The proceeds of the rupee bond issue will be brought into India and invested here. IFC currently has
commitments of $4.5 billion in India. IFC will pay an interest of 7.75% on these bonds, the lower end of the
pricing guidance of 7.75-7.8% offered by the issuer. These bonds would be settled in US dollars on redemption
and investors will bear the risk of movement of dollar/rupee currency pair.
India
02 G. K. Pillai appointed Chairman of MCX-SX
Nov MCX-SX
The MCX Stock Exchange (MCX-SX) on Friday announced the appointment of former Union home secretary
Gopal Krishna Pillai as chairman of its board of directors and of former Life Insurance Corporation of India
chairman Thomas Mathew as its new vice-chairman.
Three weeks back Jignesh Shah resigned as vice-chairman of MCX-SX. Joseph Massey, the managing director
and chief executive officer, had also resigned last month and a replacement is being sought.
GKCA Update
1st to 30th Nov
08 Siddharth Tiwary to be the next Chief Economic Advisor
Nov Economy
IMF economist Siddharth Tiwari is likely to be appointed as the chief economic advisor, replacing Raghuram
Rajan, who became the governor of Reserve Bank of India. Tiwari, an Indian national, is currently the director
of the strategy, policy, and review department which is responsible for developing IMF policies and overseeing
their implementation at the country level and coordinating IMF's interactions with the G-7, G-20, and G-24
blocs.
Earlier, the names of Ajay Chhibber from the Planning Commission, Jehangir Aziz from J P Morgan, Arvind
Subramanian from the Center for Global Development, and Gita Gopinath from Harvard University were doing
the rounds for the post that fell vacant when Rajan moved to the Reserve Bank of India.
10 Pranab Mukherjee urges IITs to attract more students to research
programmes
Nov Education
President Pranab Mukherjee at the 44th convocation of IIT Delhi, expressing his concern at fewer students
opting for post-graduate and Ph.D programmes at the IITs, said that this trend is not good as the country needs
specialized people for its future. Giving figures, he said there are only 3,000 Ph.D students at the IITs despite
60,000 students on their rolls.
Asserting that the present day economy is knowledge-driven, he said IIT-Delhi needs to play an important role
as a contributor of knowledge. This can happen only by further strengthening and enhancing post graduate
education and research in IITs.
17 India made 15 user data requests a day to Google
Nov User Data Requests
According to reports, India made an average of around 15 requests to Google per day to gain access to users’
personal web details between January and June this year. In terms of number of requests for web user details
during the first half of 2013, India is next to only the US, which made 66 requests a day on an average -- the
highest for any country, as per Google's latest Transparency Report.
In case of India, the number of user data requests rose by 16% to 2,691 in January-June this year from 2,319 in
the same period in 2012.
21 CAG questions Rs 3,000 crore of investments by two Tata trusts
Nov TATA Trusts
The Comptroller and Auditor General of India recently did a detaied audit on some of the major trusts run by
business houses and sports bodies. The audit revealed that these trusts had misused the income tax
exemptions that they had been granted with and that some of the trusts have invested, or transferred to other
trusts, large surpluses instead of spending the money for charitable purposes.
These include two trusts run by Tata i.e. Jamshetji Tata Trust and Navajbai Ratan Tata Trust and a lot of state
cricket associations. The CAG has brought this to the finance ministry’s notice and the ministry in turn has
advised the income-tax department to initiate action. The two Tata trusts together invested over Rs 3,000
crore in 'prohibitive modes', meaning investments that cannot be accepted as charitable in nature. Following
the audit, the government has initiated steps to recover over Rs 1,000 crore from the two trusts.
GKCA Update
1st to 30th Nov
27 After Helen, Andhra coast faces cyclone Leher
Nov Cyclone Helen
Recently Cyclone Helen, crossed Andhra coast near Machilipatnam, claiming six lives and damaging crops over
4.6 lakh hectares. Losses of Rs. 1,628 crore were incurred according to the disaster management department.
The state had prepared for cyclone Helen by evacuating people from the danger zones and deploying National
Disaster Response Force personnel for rescue operations.
Meanwhile The Indian Meteorological Department (IMD) has predicted another cyclone Lehar. The cyclonic
storm is expected to move west-north-westwards and cross Andhra Pradesh coast between Machilipatnam
and Kalingapatnam near Kakinada around Nov 28.The IMD has forecast heavy to very heavy falls at a few
places and isolated extremely heavy falls over north coastal Andhra Pradesh on Thursday with initial wind
speed reaching 45-55 kmph gusting to 65 kmph along and off Andhra Pradesh and south Odisha coasts.
30 Andhra Pradesh bans online ticketing for private buses
Nov Andhra Pradesh
Andhra Pradesh Transport Department has issued a ban on booking tickets for private buses online after more
than 50 people were killed in 2 major accidents. Ticketing companies like Abhibus and Redbus will be majorly
affected by this move. According to the transport department authorities the Indian law states that private
players get permissions only to operate group tours between places and sale of individual tickets is prohibited.
Following non compliance with safety requirements, hundreds of private buses have been taken off the roads.
In AP around 800 buses were taken off roads and authorities in Karnataka have seized hundreds of buses and
have registered 4,000 cases against private bus operators. Nearly 90% of the private buses are off the roads
now. The bus owners are worried about the outcome if this state of affairs continues.
Politics & Government
04 TRS chief says Seemandhra employees will have to quit jobs in Telangana
Nov Telangana
Telangana Rashtra Samithi (TRS) chief K Chandrasekhar Rao recently stated that people from Seemandhra
employed in Telangana will have to vacate the posts they hold in the region after the formation of a new state.
The TRS said that people from Telagana went through injustice since the united Andhra government recruited
non-locals for decades in violation of the law. He said that according to a rough estimation, 30% of the
government employees currently working in Telangana belong to Seemandhra and that they were illegally
recruited.
TRS has said it would not accept making Hyderabad the common capital for 10 years and said it must not be
the joint capital for more than two years.
05 Indian Mujahideen had planned Modi’s assassination
Nov Attacks on Modi
Initial interrogation of arrested IM operative Imtiaz Ansari revealed that Indian Mujahideen's Ranchi module
was formed to assassinate Narendra Modi. The plotters were using the code- 'Machhli 5'- for the job. 18
bombs were planted in and around Gandhi Maidan, the venue for Modi’s rally, to create a stampede like
GKCA Update
1st to 30th Nov
situation. The assassination attempt failed because the people carrying out the operation were newly
recruited and could not carry out the task with precision.
Later, security around Modi was tightened following an intelligence alert about an ISI plot to use Khalistani
terrorists to eliminate Modi.
22 Sting hits AAP, Shazia Ilmi offers to quit poll race
Nov AAP
In a recent sting operation by a web portal on eight AAP candidates and one member some of them were
found willing to accept cash donations without receipts and get work done in return for funds. The operation
included well known faces like Shazia Ilmi and Kumar Vishwas.
Senior AAP member Yogendra Yadav asked the web agency to send them the raw footage in order to decide if
the members concerned were actually guilty. According to him those people had something else to say. But he
made it very clear that if anyone was found guilty then they wouldn’t contest the elections. Party national
secretary Sanjay Singh, who along with Yadav will investigate the matter from the party's side, said AAP did not
want blame anyone for conspiring against it.
Science and Technology
13 PSU banks running Windows XP face security risks as Microsoft announces
end of support
Nov Microsoft XP
Microsoft has said that it will provide support to Windows XP only for the last 100 working days and after April
8 2014, no anti-virus software will be able to protect computers running on XP. According to a Microsoftfunded study, 34,115 PSU bank branches in India face a security threat as 40 to 70 percent of their machines
use the Windows XP OS. Many of the 45 Indian banks using XP have shown little intent to switch completely to
Windows 7 or 8.1. The banks that do not upgrade will face heavy maintenance costs, as high as $300 (Rs
19,000) per PC, as opposed to $95 (Rs 6,000) for upgrading to a newer OS. Upgrade cost is even low for PSU
banks till January as Microsoft is offering around 50 percent discounts for upgrades to Windows 7.
World
04 IDB to launch $10 billion Islamic bond
Nov IDB
The Islamic Development Bank (IDB) will set up a $10 billion sukuk issuance programme on the Nasdaq Dubai
exchange. This will boost Dubai’s efforts to become a top centre for Islamic finance in competition with other
cities.
IDM already issues Islamic bonds in London and Kuala Lumpur and this would be it’s third sukuk programme.
But it’s first in a Middle Eastern country. The international lender, which has 56 member countries, promotes
economic development in Muslim countries and communities.
A sukuk is an Islamic financial certificate, similar to a bond in Western finance that complies with Sharia,
Islamic religious law.
GKCA Update
1st to 30th Nov
08 Iran to cap some atomic activities in exchange for selective sanctions relief
Nov Iran
Iran’s chief nuclear negotiator Abbas Araghchi has said that International negotiators have agreed to Iran’s
proposed framework to cap some of its atomic activities in exchange for selective relief from economic
sanctions that have hit Iran’s economy badly. The negotiators are expected to reach an agreement on the
details by Friday, 15th November in the latest round of talks being held in Geneva. International negotiators,
representing the US, Russia, China, Britain, France and Germany, however, declined to comment on Araghchi's
statement.
15 Saudi anti-migrant operation creates a mess
Nov Saudi Anti-Migrant Operation
In Saudi Arabia, foreign workers are fleeing, have gone into hiding or are under arrest following a crackdown
targeting the kingdom's 9 million migrant labourers. Grocery stores are shut and almost half of Saudi’s small
construction firms have stopped working on projects since most businesses rely on foreign workers. Since early
this year, hundreds of thousands of foreign workers have been deported. Some were able to avoid arrest by
getting proper visas in an amnesty programme. That amnesty ended recently, and some 33,000 people have
since been placed behind bars.
For many years, lax on immigration policies had made it easy for migrants to take up low-wage, manual,
clerical and service jobs. The citizens rejected such jobs for better paying, more comfortable work. Authorities
now say that driving away migrant workers will open up job opportunities for the citizens since unemployment
among Saudis was at 12.1% towards the end of last year according to the International Monetary Fund.
16 Wall Street Journal and Reuters sites blocked in China
Nov Sites Blocked in China
The Wall Street Journal and Reuters’ Chinese versions have been blocked in China. The websites’ English
versions are still operable. The reasons for blocking the websites are not very clear and it is not certain if the
block is permanent or temporary. A veteran reporter for Reuters, was denied a journalist visa.
In a similar move last year, the Chinese government had blocked several high profile news sites, including NYT,
Bloomberg, and Businessweek, after revelations about a secret fortune held by then-premier Wen Jiabao
surfaced.
17 Qatar migrant workers 'treated like animals' – Amnesty
Nov Qatar
As work begins on Fifa World Cup 2022 stadiums in Qatar, a report published by Amnesty International (AI)
says that Qatar's construction sector is full of abuse. The report says that migrant workers are subjected to
non-payment of wages, dangerous working conditions and squalid accommodation.
Interviews were conducted with 210 workers, employers and government officials for the. The workers said
they worked like cattle up to 12 hours a day, seven days a week, even during the hot summer months in Qatar.
Some workers were threatened with penalty fines, deportation or loss of income if they did not show up to
work even though they were not being paid.
Qatari officials have however stated that conditions will be suitable for those involved in construction of World
Cup facilities.
GKCA Update
1st to 30th Nov
18 US Midwest states hit by tornadoes
Nov US Tornado
The US Midwest has been hit by powerful tornadoes with winds of up to 111km/h (68mph) that have
overturned vehicles and destroyed buildings in the states of Indiana, Kentucky and Illinois. Around 8 people
have died and it is feared that hundreds of people are injured and a number of people might be trapped inside
buildings. According to forecasts people in 10 states had been at risk. There were reports of large hail stones as
well.
18 Google and Microsoft agree steps to block abuse images
& Microsoft
Nov Google
Google and Microsoft have agreed to take measures to make it more difficult to find child abuse images online.
Around 100,000 search terms will not return any result that can be termed as illegal material. And an attempt
to search for such images will return warnings stating that child abuse imagery is illegal.
UK PM, David Cameron, has welcomed the move but said it needs to be implemented or he would bring
forward new legislation. However, child protection experts have said that most images are uploaded on hidden
networks. Google and Microsoft's Bing together account for 95% of search traffic. Hence, earlier this year, Mr
Cameron had asked Google and Microsoft's Bing to undertake more measures to prevent people from gaining
access to illegal images. He said that they needed to ensure that searches which were unambiguously aimed at
finding illegal images should return no results.
The issue of online images showing the sexual abuse of children has made headlines in recent months after the
convictions of Stuart Hazell and Mark Bridger for the murders of Tia Sharp and April Jones.Both Hazell and
Bridger were known to have sought out and viewed child abuse images online.
19 NASA launches new spacecraft to orbit Mars
MARS Mission
Nov NASA’s
NASA recently launched a $671 million mission to Mars. The spacecraft to Mars is called MAVEN -- short for
Mars Atmosphere and Volatile Evolution. It's the first mission dedicated to studying the Mars’ upper
atmosphere and its influence on the Martian environment. The spacecraft will help understand Mars’ climate
state, how the atmosphere is lost to space i.e. how Mars may have lost a magnetic field. The scientists intend
to take this information and map it back in time.
MAVEN lifted off from Cape Canaveral Air Force Station in Florida, starting a 10-month trip. The spacecraft will
reach Mars on September 22, 2014.
23 Philippines typhoon death toll feared to hit 7,000
Nov Philippines Typhoon
Close to 7,000 are feared dead or missing after Super Typhoon Haiyan struck the Philippines destroying towns
across a long stretch of islands. The death toll confirmed by the government confirmed went up to 5,235, with
1,613 people still missing. In the nine provinces affected by the storm many people are still exposed to bad
weather. Tacloban, a coastal city was one of the worst-hit areas where five-metre (16-feet) waves surged deep
inland and destroyed most buildings, survivors continued to complain about a lack of help.
The World Bank yesterday added $480 million in emergency aid to the Philippines, taking its support to nearly
USD 1 billion, in an effort to spur efforts to rebuild homes and infrastructure.
GKCA Update
1st to 30th Nov
25 Facebook CEO slams US govt on cybersnooping
Nov Facebook
Mark Zuckerberg, CEO of Facebook, criticized the government's data collection programmes, and stated that
the US government 'really blew it' out. He said that the government needed to strike a balance between doing
the right things and informing people about whatever they were doing.
In an interview on ABC's "This Week", Zukerberg stated that the US government really blew it on this one, and
that they're continuing with it in certain ways.
After reports about several Internet companies giving the US government direct access to its servers,
Zuckerberg issued a categorical denial in June. He said that Facebook never received such a court order or
blanket request from any government agency asking for bulk information or metadata, like the one received
by Verizon and that if his company did receive such a request if then it would fight it aggressively.
25 Japan PM calls China’s new air defence zone as dangerous
Nov China’s Sir Defence Zone
Shinzo Abe, Japan's Prime Minister described China's move to create a new air defence identification zone
over disputed waters as dangerous. China expressed anger at objections from Japan and US and lodged
complaints with their embassies. Mr Abe stated that the zone if created may invite unexpected occurrences
and that it can be dangerous. He wants China to revoke any such measures that infringe upon the freedom of
flight in international airspace.
The zone covers disputed islands controlled and claimed by Japan. According to China, aircraft entering the
zone should obey its rules.
US Defence Secretary referred to the move as a destabilising attempt to alter the status quo in the region.
26 Iran signs nuclear deal with World powers
Nov Iran Nuclear Deal
Recently Iran signed a deal on its nuclear programme with the world powers. Iran has agreed to curb its
nuclear activities in return for about $7bn in sanctions relief. Washington said the changes called for in the
agreement will make Iran less of a threat to Israel and people in Iran welcomed the move. US President,
Barrack Obama also defended the deal.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu said that he considered the Iran nuclear deal as a
mistake. He thought that the deal had made the world a more dangerous place. Netanyahu said the deal
leaves Iran taking steps can reverse easily within a few weeks in return sanctions that took years to put in
place are going to be eased. He further said that without constant pressure Iran will have incentives to take
serious steps that actually dismantle its nuclear weapons capability.
If the nuclear deal holds and sanctions ease, Iran may want India to make oil payments in dollars, which will
not be in India's best interests and it may signal an end to cheap oil supply for India.
28 US spied on 2010 G20 summit in Canada: Report
Nov US Spying
According to documents leaked by former NSA contractor Edward Snowden, National Security Agency was
allowed to spy in Canada by the countries authorities during the G8 and G20 summits in 2010. The documents
GKCA Update
1st to 30th Nov
state that the US embassy in Ottawa was used by the NSA as a command post for a spying operation that
lasted close to a week in June 2010 while President Barack Obama and other foreign leaders were present in
Canada.
28 Syrian chemical weapons set to be destroyed at sea
Nov Syria
US Navy auxiliary vessel MV Cape Ray will be used to destroy Syria's chemical weapons at sea. According to
industry sources, a mobile destruction plant that uses water will be used to dilute the chemicals to safer levels.
The process called hydrolysis will produce estimated 7.7m litres of effluent. The OPCW says this will be packed
in 4,000 containers. Syrian army convoys will start to move the chemicals, more than 200 standard freight
containers' worth, to a Mediterranean port.
31st December is the deadline set up by The Organisation for the Prohibition of Chemical Weapons (OPCW) for
the removal of the toxic substances from Syria. So far countries have been reluctant to take on the task.
Though the international community said that disposal of chemical weapons was one of the most urgent
security problems in the world still Countries like Albanis and others have said that they will not take any such
measures towards disposal.
GKCA Update
1st to 31st Dec
Starred Articles
01 China launches first lunar rover mission
Dec Science & Technology > China Lunar Mission
China launched its first lunar rover mission, a symbol of its rising global stature and technological
advancement, as well as of China's success in reversing the fortunes of the once impoverished nation. It is also
the third robotic rover mission to land on the lunar surface.
A landing module and a six-wheeled robotic rover called Yutu (or Jade Rabbit) is a part of the Long March
rocket's payload. Mid –December is when the mission is expected to land in the Moon's northern hemisphere.
The vehicle has ground-penetrating radar which will gather measurements of the lunar soil and crust.
The mission, that is a part of China's long-term space exploration programme, is aimed at exploring the Moon's
surface and looking for natural resources such as rare metals. Upon the missions success China plans to
establish a permanent space station in Earth orbit.
02 16 plus to be treated as adults in heinous crimes
Dec India > Punishment for Juveniles
Youngsters above 16 years of age and found guilty of heinous crimes should be treated on par with adult
offenders says government. If the existing law is amended and if the Indian Penal Code relating to adult
offenders becomes applicable to juveniles between 16-18 years then they will denied protection of the
Juvenile Justice Act.
05 India to host 2017 Under-17 FIFA World Cup
Dec Sports > Football
FIFA, the international football body, has awarded India the right to host the Under-17 FIFA World Cup in 2017.
India beat other bidders South Africa, Ireland and Uzbekistan in the fight to host the 24-nation mega event.
This will be the biggest ever football tournament India will be hosting and the first FIFA event in the country's
history.
By virtue of being the host country, India will take part in the tournament for the first time in its history.
06 Nelson Mandela, South Africa's first black president, dies aged 95
Dec World > Nelson Mandela
South African anti-apartheid revolutionary Nelson Mandela died aged 95 at his Johannesburg home after a
prolonged lung infection. He had been receiving intensive medical care at home for a lung infection after
spending three months in hospital. Mandela led South Africa's transition from white-minority rule in the
1990s, after 27 years in prison for his political activities.
More than 80,000, including scores of international politicians, attended the gathering for Nelson Mandela at
the stadium in the Soweto Township where he made his last public appearance at the closing ceremony of the
2010 football World Cup.
GKCA Update
1st to 31st Dec
07 WTO agrees on $ 1 trillion landmark global trade deal, India wins stand to
provide subsidized food beyond WTO limit
Dec World > WTO Food Subsidy Limit
In a major breakthrough, all 160 members of the World Trade Organisation agreed to a package of measures
that is expected to boost global trade by $ 1 trillion and allowed developing countries to provide subsidized
food to the poor over and above the farm subsidy limit. India had stood firm on its right to provide food to the
poor and had asked for immunity from the WTO agreement on agriculture that limits food subsidies. The
historic agreement allows India to offer farm subsidies for public stockholding and food security programmes
without inviting any censure.
09 Star Group replaces Sahara as Team India’s official sponsor
Dec Sports > Team India Sponsorship
Star India Pvt. Ltd. has bagged the sponsorship rights of the Indian Team for a period of three years from 1st
January 2014 to 31st March 2017. Star will cover BCCI, ICC and ACC events and sponsorship rights include the
right to be called the 'Official Team Sponsor' and to display a commercial logo on the team clothing of the Sr.
Men's Cricket Team, the U-19 Men's Cricket Team, the Men's A-Team and the Women's Team. The Indian
Team would have been without a sponsor this month as Sahara had withdrawn its sponsorship owing to
financial dispute with the BCCI during the IPL.
09 BJP wins 3-0 in Assembly Elections, AAP stuns with second highest votes in
Delhi
Dec India > Assembly Elections
The Bharatiya Janata Party (BJP) has defeated the Congress and won 407 of the 589 seats in the recently held
Assembly elections in Madhya Pradesh, Rajasthan, and Chhattisgarh and has emerged as the single largest
party in the Delhi Assembly. The assembly elections were seen as crucial in the run up to the 2014 polls and
the BJP’s success is seen as a result of Modi’s popularity as well as the BJP’s choice of strong Chief Ministerial
candidates. However, Arvind Kejriwal ‘s Aam Aadmi Party (AAP) surprised everyone by winning 28 seats in the
70 member Delhi Assembly and denying BJP, which won 31 seats, a clear victory. Kejriwal defeated three-time
Delhi CM Sheila Dikshit of the Congress. The BJP bagged 165 seats in the 230-strong Madhya Pradesh assembly
making Shivraj Singh Chouhan, Chief Minister for a third term. In Rajasthan, the BJP led by Vasundhara Raje
defeated the ruling Congress Party 162 to 21 whereas in Chhattisgarh, the BJP won 49 of the 90 seats, with a
10 seat lead over the Congress.
09 MGNREGS and Indira Awas Yojana to be combined to save on costs
Dec India > Rural Development Ministry
The rural development ministry has decided to use its flagship rural employment scheme, the Mahatma
Gandhi National Rural Employment Guarantee Scheme (MGNREGS), to provide free labour to build houses for
poor under another big social scheme, the Indira Awaas Yojana (IAY).
This could substantially bring down the cost of building a house for the poor in rural areas and also incentivise
such construction as the beneficiary will also have an income while he builds the house.
GKCA Update
1st to 31st Dec
11 Supreme Court terms Gay Sex as criminal offence, rejects Delhi High Court’s
ruling
Dec India > SC on Gay Sex
The Supreme Court of India dealt a major blow to the gay community after it overruled a 2009 ruling by the
Delhi High Court that had decriminalized gay sex and termed it a criminal offence again. The Supreme Court
said that the 2009 Delhi High Court order is constitutionally unsustainable as only the government can change
a law. Gay sex between consenting adults is a criminal offence under Section 377, a British colonial era law
banning "carnal intercourse against the order of nature", which had been struck down by the high court. Gay
Rights Activists said they would seek a review of the decision. Noted and common people alike took to social
media to express their disgust at the verdict.
12 Doha Bank gets licence for operations in India
Dec World > Doha Bank
Doha Bank has been granted licence to commence banking operations in India and has been permitted to open
a branch in Mumbai to provide full-scale banking services. It will offer wholesale banking, retail banking,
treasury and trade finance services. Sheikh Fahad Bin Mohammad Bin Jabor Al-Thani, Chairman of Doha Bank’s
board of directors said that this licence will further enhance the role Doha Bank is playing and facilitating the
movement of trade between Qatar and India.
16 Government to launch internet spy system ‘Netra'
Dec India > Defence Ministry
According to a Department of Telecom’s internal note, Intelligence Bureau and Cabinet Secretariat are
currently testing 'Netra', the defence ministry's internet spy system which can capture any dubious voice
traffic passing through softwares such as Skype or Google Talk.
Netra, the internet spy system, will be capable of detecting words like 'attack', 'bomb', 'blast' or 'kill' in a
matter of seconds from reams of tweets, status updates, emails, instant messaging transcripts, internet calls,
blogs and forums.
The 'Netra' internet surveillance system has been developed by Centre for Artificial Intelligence & Robotics
(CAIR), a lab under Defence Research & Development Organisation (DRDO).
17 Indian Deputy Consul General in New York, Devyani Khobragade, arrested
on visa fraud charges
Dec India > Devyani Khobragade
Indian Deputy Consul General in New York, Devyani Khobragade, was arrested on Monday, 16th December, on
charges of visa fraud for the visa application of an Indian national employed as a babysitter and housekeeper
at her home in New York. Significantly, Khobragade was serving as the acting Consul General at the time of her
arrest. She was released on a USD 250,000 bond and submitted her diplomatic passport in court. Khobragade
was apparently arrested on the basis of allegations raised by her former domestic assistant, Sangeeta Richard,
who has been absconding since June this year. In this context the Delhi High Court had issued an-interim
injunction in September to restrain Richard from instituting any actions or proceedings against Khobragade
outside India on the terms or conditions of her employment. Khobragade had allegedly asked Sangeeta to give
false statements about hourly wage and hours worked which were much lower than US-mandated hours and
wage standards.
GKCA Update
1st to 31st Dec
India has been deeply offended by the manner in which Khobragade was treated by the US authorities who
chose to ignore her status as a middle-level diplomat from a friendly country. She was strip-searched, confined
with drug addicts and also subjected to DNA swabbing. She had certain privileges, if not diplomatic immunity,
which New Delhi believes were denied to her. The US has said that it will look at its internal procedures to see
if appropriate steps were followed, while recognizing the agitation that the issue has caused in India.
18 Lok Sabha clears Lokpal Bill
Dec India > Lokpal Bill
The Lok Sabha has passed the long awaited Lokpal bill with a clear majority. Earlier on Tuesday, 17th
December, the Rajya Sabha passed the bill. It will now be sent to the President for his approval. Anna Hazare
who had been fasting for a stronger anti-corruption bill, broke his fast and thanked all parties who supported
the Lokpal bill and said that 40 – 50 % of the corruption can be controlled through the bill. The Samajwadi
Party opted to walk out of the House in protest and AAP leader Arvind Kejriwal expressed his opposition and
surprise at Anna’s acceptance to the bill, which is a toned-down version of the original Lokpal bill proposed by
Anna.
20 US rules out apology or withdrawal of Khobragade case even as John Kerry
expresses regret
Dec India > Devyani Khobragade
India had demanded either an apology from the US for the treatment meted out to Devyani Khobragde, the
Indian Diplomat arrested in connection with a visa fraud case, or complete withdrawal of the case. However,
the US has ruled out acceding to either of the two demands, saying that it was a serious law-enforcement issue
and the US was taking the allegations very seriously.
Secretary of State John Kerry called up National Security Advisor Shivshankar Menon and expressed regret
over the treatment meted out to Khobragade and said that this ‘isolated’ statement should not hurt ‘close and
vital’ bilateral ties.
22 Apple Signs iPhone Deal with China Mobile
Dec Corporate > Apple China Mobile Deal
After more than six years of negotiations, Apple has reached a multiyear deal with China Mobile, China’s
largest wireless carrier, to sell its flagship iPhone device.
Under the agreement, according to a statement by Apple, iPhone 5s and iPhone 5c phones will be available at
China Mobile and Apple retail stores across mainland China starting January 17. The partnership gives Apple
much greater access to the world’s largest mobile market, with an estimated 1.2 billion users. The companies
didn't disclose pricing or the terms of the agreement.
23 AAP announces it will form government in Delhi, Kejriwal to be next Delhi
CM
Dec Politics & Government > Delhi
The Aam Aadmi Party has announced that it will form the government in Delhi with the support of the
Congress, ending days of suspense after elections in the capital threw up a hung assembly. Arvind Kejriwal is
their Chief Minister designate. The swearing-in ceremony is expected to take place on December 26.
He is expected to hand-over a formal letter to Delhi lieutenant governor Najeeb Jung staking claim to form the
GKCA Update
1st to 31st Dec
government, capping a stunning debut in the just-concluded elections, which blasted the duopoly enjoyed by
Congress and BJP.
25 Japan approves a record $922 bn budget spending
Dec World > Japan
Japan approved its biggest ever budget and a sales tax hike made room for more defence spending and the
first step towards achieving a balanced budget. The plan that will see the Japanese government spend 95.88
trillion yen ($922 billion) in the year from April 2014.
The figure is the largest in Japan’s history due to changes in accounting rules and a sales tax hike.
28 Arvind Kejriwal sworn in as Delhi chief minister
Dec Politics and Government > AAP
Aam Aadmi Party leader Arvind Kejriwal took oath as the seventh chief minister of Delhi. Lieutenant Governor
Najeeb Jung administered the oath of office and secrecy to Kejriwal and six other ministers at the Ramlila
Maidan in New Delhi.
Six ministers -- Manish Sisodia, Somnath Bharti, Rakhi Birla, Satyendra Jain, Saurabh Bharadwaj, Girish Soni –
also took oath of office and secrecy at the ceremony.
Awards
06 Malala awarded 2013 United Nations Human Rights Prize
Dec International
Pakistani activist Malala Yousafzai, who survived an assassination attempt last year, has been awarded the
2013 UN Human Rights Prize. This honour was previously given to icons like late Nelson Mandela in recognition
of outstanding achievement in human rights.
The prize is awarded every five years and has previously been bestowed on Amnesty International and former
US president Jimmy Carter.
Bank Specific
06 SBI to invest in technology to bring down costs
Dec SBI
State Bank of India (SBI) is planning on increasing its investments in technology to bring down the costs it
incurs in opening and operating accounts in rural and semi-urban areas as part of its financial inclusion efforts.
A number of zero-balance accounts have been opened which are adding to costs even though they are not
significant deposits. It is trying to put it an automated technology platform through which they can take out
manual intervention in financial inclusion accounts mobilized by business correspondents and thereby cut
down on costs.
GKCA Update
1st to 31st Dec
12 Award of new bank permits likely to be delayed owing to scrutiny of
applicants
Dec New Bank Permits
Permits for new banks are unlikely to be given out in January 2014 as indicated earlier by the Reserve Bank of
India. An expert committee for screening new bank licenses headed by former RBI Governor Bimal Jalan has
said that the RBI is doing an intensive scrutiny of all the applicants and all parameters as per the guidelines.
Originally, 26 applicants had sought new bank permits from the RBI, including Aditya Birla Group and Anil
Ambani led Reliance Capital. But Value Industries (part of Videocon Industries) and Tata Sons have since then
withdrawn their applications.
Corporate
02 GAIL puts $3-billion pipelines on hold for want of buyers
Dec GAIL
GAIL India has put two natural gas pipelines with envisaged investments of $3 billion on hold as it has not been
able to find customers on these routes. Due to the shortage of domestic gas and the high cost incurred in
imported or regasified liquid natural gas (R-LNG) the pipelines won’t be able to meet the 50-60% utilisation
levels essential for them to remain commercially viable.
In the current economic situation GAIL cannot find clients for gas even at about $15 per million metric British
thermal units (mmBtu), compared with past sales at $20 per mmBtu. As a result, GAIL is now adopting a
strategy of synchronising pipeline construction with the supply of gas.
The availability of domestic gas has fallen over the last two years. On the other hand, R-LNG imports in FY 13
was high and is expected to grow further by 2020-21, when India will likely become a net importer of gas.
Major customers of gas are from the power, fertiliser and refineries sectors, and the R-LNG prices are not
commercially viable for these entities.
04 Indians clueless about faulty implants by Johnson & Johnson
Dec Johnson & Johnson
Johnson & Johnson will pay compensation of over Rs 15,000 crore to around 8,000 US citizens who had sued
the company after being fitted with its faulty hip implants.
J&J had globally recalled the metal-on-metal Articular Surface Replacement (ASR) implant, manufactured by its
subsidiary DePuy Orthopedics. The metals used for the implant, cobalt and chromium were reacting adversely
in the body leading to pain or discomfort and increasing chances of metal poisoning.
In India out of the 4,500 patients only one known case was registered against the company in a consumer
court since most patients were clueless about the faulty implant. A US litigant got compensation of Rs 15.6cr
under the plan apart from legal fees. But for Indians, the company only offered to bear costs of testing and
treatment for reasons related to the recall, which included revision surgery. The Maharashtra Food and Drug
Administration (FDA) later wrote to the CBI to take over the case. FDA had also filed an FIR with the Mahim
police station in 2011. Johnson and Johnson however refuted charges of differential treatment.
GKCA Update
1st to 31st Dec
05 Airtel raises 750 m euros in bonds, attracts huge investor interest
Dec Airtel
The country's largest mobile operator, Bharti Airtel has said that it has raised 750 million euros (about Rs 6,350
crore) in the first such bond issue by an Indian corporate and received bids worth 3.8 billion euros. The
company raised the money at a coupon rate of 4.05% for the five-year paper and will use the proceeds to
refinance its existing debt. The coupon rate is the yield paid by a fixed income security. This is the third bond
issue by Airtel this calendar year.
16 SpiceJet looks for potential investor with eyes on revamp, seals deal with
Singapore’s Tigerair
Dec SpiceJet
SpiceJet is revamping its route network to return to profitability and is looking for a potential investor. SpiceJet
posted a record loss of Rs. 559 crore in the quarter ended September 30 owing to rupee depreciation, high fuel
prices and lean travel season. The airline is expecting to make a complete turnaround in a year on all fronts
including increasing the fleet size. SpiceJet Ltd. has also signed a three-year interline agreement with
Singapore's largest budget airline, Tigerair for greater connectivity between their carriers.
16 Amazon workers go on strike in Germany
Dec Amazon
Amazon.com workers in Germany went on strike in a dispute over pay and conditions that has raged for
months. A delegation of German workers also protested at Amazon's headquarters in Seattle, helped by U.S.
unions.
Currently, Germany does not have a national minimum wage, but rather relies on collective wage agreements
that govern things like minimum pay. The agreements are negotiated between employers and employees on a
sector-by-sector and region-by-region basis.
17 Boeing authorizes $ 10 billion record buyback of its own shares
Dec Boeing
Chicago-based Boeing airlines has authorized a $10bn (£6.1bn) buyback of its own shares, the largest in the
company's history, in addition to raising its quarterly dividend. Its dividend will increase by about 50% to 73
cents a share, to be paid in March 2014. Boeing's previous buyback record was $7bn in 2007, with $800m still
unused. Higher production and sales of Boeing 787 Dreamliners have contributed to increased cash flows for
the company.
19 Etihad fined Rs. 1 core for non-disclosure of information in Jet-Etihad deal
Dec Jet-Etihad
Abu-Dhabi based Etihad Airways has been fined Rs. 1 crore by the Competition Commission of India (CCI) for
non-disclosure of full information in the course of seeking approval for its purchase of 24 per cent stake in
Naresh Goyal's Jet Airways. The Rs. 2060 crore deal has faced opposition from various quarters since its
announcement in April, 2013. The penalty would not affect the approval given by CCI last month.
GKCA Update
1st to 31st Dec
19 Saab wins $ 4.5 billion Brazil fighter jet contract over rivals Boeing and
Dassault
Dec $ 4.5 billion Brazil Fighter Jet Deal
Swedish aerospace and Defence Company Saab has won a $ 4.5 billion deal to supply 36 fighter jets to Brazil.
Saab had defeated rivals Boeing and Dassault Aviation to win the deal which is considered to be one of the
most valuable ones in emerging markets. Experts said that Boeing had lost the deal because of the recent
fallout of the between the US and Brazil over spying allegations. Boeing had also recently lost out to Lockheed
Martin in a multi-billion dollar fighter jet deal in South Korea.
24 Blackberry reports massive $4.4 bn loss in the third quarter
Dec Blackberry
BlackBerry reported a massive $4.4 billion loss in the third quarter and a 56 per cent drop in revenue in its first
quarterly report. Despite the results, new chairman and chief executive John Chen, said that BlackBerry "has a
really good shot" of turning a profit in 2016 and management will try its best to achieve the goal.
26 BHEL wins Rs 1,023 crore contract from Neyveli Lignite Corp
Dec BHEL
BHEL has bagged a Rs 1,023 crore contract from Neyveli Lignite Corporation for supplying turbine generator
package at a thermal power project in Tamil Nadu. BHEL has established the capability to deliver power plant
equipment of 20,000 MW per annum.
30 Top executives quit Bharti Airtel after Gopal Vittal becomes CEO
Dec Airtel
Three-fifths of Bharti Airtel India's top executives have left the company over the past nine months, coinciding
with the elevation of Gopal Vittal as CEO.
While a few left on their own, the majority have quit either because they were "sidelined" in the new scheme
of things or were asked to leave as they didn't fit into the new structure which the new management was
aiming to bring in amid tighter budgets.
India
01 Punching PIN compulsory for debit card transactions from Dec 1
Dec Debit Card PIN
Punching in the pin number will now become compulsory for Debit card holders after each time that they use
their card to minimize frauds. In June, RBI had extended the deadline for implementation of mandatory PIN
punching at point-of-sales (PoS) and merchant outlets till November 30 following representation of banks.
SBI in a notice asked its customers not to hand over ATM-cum-Debit card to any person as part of the
awareness drive. Customers were also advised against keeping any records of the PIN in physical form.
For international transactions through credit cards including those on the internet, this requirement has been
made mandatory. In such cases, users will have to replace their existing credit cards with the EMV chip card
and get a PIN.
GKCA Update
1st to 31st Dec
03 SBI To Raise around Rs 9,576 crore through Share Sale and Rs 11,575
through preferential issue, FPO
Dec SBI
State Bank of India to raise up to Rs 9,576 crore through a share sale to institutional investors or a follow-on
public offer. It also plans to raise another 20 billion rupees through sale of shares to the government on a
preferential basis.
SBI also plans to raise Rs11,575 crore from the equity market. It has sought approval from shareholders to
raise Rs 2,000 crore in the form of preferential basis to be subscribed by the government. It plans to raise the
rest, Rs 9,576 crore, through a follow-on public issue from qualified institutional buyers (QIB).
The bank will have a shareholders' meeting on December 30 to seek their approval. It is raising money to
improve its capital adequacy ratio, which serves as a buffer against possible risks.
12 Banks oppose Aadhaar enabled ATMs
Dec RBI
Leading banks are set to oppose the Reserve Bank of India (RBI) diktat that all new automated teller machines
(ATMs) and Point of Sale (POS) machines should be tailored to accept Aadhaar. Senior bankers went into a
huddle to list out the pitfalls of the central bank's directive, which they think is being rushed through without
understanding the implications for banks and the huge costs involved.
13 Two companies that put Rs 28 cr in Tehelka linked to Jindal firm named in
coal scam FIR
Dec Tarun Tejpal
According to an investigation by The Indian Express, two firms that together invested Rs 28.35 crore in Tarun
Tejpal's holding company, Anant Media, have links to a Jindal group company that is named in a CBI FIR in the
coal blocks allotment scandal. Records show that Enlightened Consultancy Services invested Rs 16.75 crore and
Weldon Polymers Private Ltd Rs 11.60 crore in Anant Media. This effectively valued Anant Media at Rs 93.1
crore while its loss was Rs 21.06 crore.
13 Govt, Congress set to scrap SC ruling on gay sex rights
Dec Homosexuality
The government has decided to reverse the Supreme Court judgment making homosexuality a crime again.
The intervention marks a new boldness on a socially controversial issue, as well as an acknowledgement of the
power of the campaign of the LGBT community's right to equality, and the response it has generated. The
Congress is sure to get support from the Left which has attacked the restoration of Section 377 as retrograde.
13 Lalu Prasad gets bail in Fodder scam case
Dec Fodder Scam – Lalu Prasad
The Supreme Court of India has granted bail to Rashtriya Janata Dal president Lalu Prasad, who was accused in
a Fodder scam case and sentenced to five years in prison. He was lodged in a Ranchi Jail on September 30. Mr.
Prasad had appealed against the October 31 judgement of the Jharkhand High Court, rejecting bail for him.
GKCA Update
1st to 31st Dec
19 Captain Sunil James and Vijayan acquitted from Togo jail
Dec Captain Sunil James
Captain Sunil James and Vijayan, two sailors held captive by the Togo police have been released. The third
crew member, who is also being held captive, has not been released as the court is still deciding his case. Togo
police had arrested James and two other Indian crew members on July 31 on charges of helping pirates who
attacked and looted his ship, M T Ocean Centurion, 45 nautical miles southeast of Togo's coastal capital Lome,
on July 16. James’s family had been fighting for his release for many months and it ultimately took the PMO’s
intervention to secure his release.
Politics & Government
02 Ex- RSS pracharak Sunil Joshi muder case - BJP youth wing leader held
Dec BJP
National Investigation Agency (NIA) arrested Jitendra Sharma, a youth wing leader from BJP for facilitating the
murder of former RSS Pracharak Sunil Joshi in Dewas, Madhyapradesh. Joshi was murdered by his own
associates, Lokesh Sharma and Rajendra Chaudhary, following a dispute over a liquor shop owned by the three
of them and Joshi’s misbehavior with Pragya Singh Thakur accused in the 2008 Malegaon blasts.
Earlier RSS and BJP were accused of promoting Hindu terrorism by home minister Sushil Kumar Shinde.
Sharma, the mastermind behind several blasts like those in Samjhauta express, Mecca Masjid and Malegaon,
was the vice president of the Indore rural unit of BJP’s youth wing called Bhartiya Janata Yuva Morcha. Jitendra
sheltered various Hindutva terror accused in the past and in the Joshi murder case he arranged for the weapon
and later hid it.
23 V K Duggal named Manipur governor
Dec Manipur
The President has appointed former Union home secretary V K Duggal as the governor of Manipur. He will
replace Ashwani Kumar, who was a former CBI director.
During the early part of his career, Duggal served both as an officer of the Indian Army and then as a district
magistrate in Mizoram. He retired as Union home secretary in 2007, and discharged several key responsibilities
thereafter, including as member secretary of the Justice B N Srikrishna committee that examined the
Telangana issue.
30 AAP delivers on water promise, but bills to rise for big consumers
Dec AAP
The Aam Aadmi Party kept its promise of free water - 20 kilolitres per month or an average of about 660 litres
a day per family. If consumption exceeds 20 kl, citizens would be billed for the entire water consumed, and
water rates would be hiked by 10%. Delhi chief minister Arvind Kejriwal said that the sop would be effective
from January 1, 2014.
GKCA Update
1st to 31st Dec
Science and Technology
12 Health ministry issues recall alert for J & J’s ASR hip replacement devices
following reports of metal poisoning
Dec Johnson & Johnson Hip Replacement Devices
The health ministry has issued a recall of Johnson & Johnson’s (J&J’s) hip replacement devices and asked
doctors not to implant them in patients in India following reports of metal poisoning and high failure rate of
the product. The ministry has also directed that all unused ASR hip replacement devices should be returned to
the manufacturer and has directed doctors to schedule all patients implanted with ASR hip replacements for a
clinical examination. Between 2004 and 2010, India imported 15,829 hip implant devices from J&J. In 2010,
when J&J initiated a voluntary recall in India, only 1,295 devices were sent back to the company while the
remaining continues to be used by orthopaedic surgeons. About 90 percent of the patients are still in the dark
about the possible dangers of the implant. While as many as 4,700 Indians underwent ASR implants till date,
only 280 patients have registered with the ASR helpline put up by J&J and 68 have had to undergo revision
surgeries to replace the faulty implant. J & J’s subsidiary DePuy Orthopaedics said that it is committed to
address customary costs of testing and treatment for the recall. Last month, J&J agreed to pay compensation
of $2.5 billion to settle consumer lawsuits filed by around 8,000 US citizens who sued the company after being
fit with faulty hip implants.
Sports
30 Michael Schumacher in critical condition after skiing accident
Dec Michael Schumacher
Michael Schumacher is in critical condition after suffering severe head trauma in a skiing accident in the French
Alps. According to the hospital officials, the he fell and hit his head on a rock and was in a coma when he
arrived at the University Hospital Center of Grenoble and required immediate brain surgery.
World
01 6.3-magnitude earthquake strikes off Indonesia
Dec Indonesia Earthquake
An earthquake of magnitude 6.3 struck the sea off Indonesia.
The quake hit a remote strip of sea between the Pacific and Indian oceans, north of Australia and east of
Timor-Leste, some 5.6 miles (9 kilometres) deep.
It was centered approximately 212 miles (340 kilometres) west-northwest of Saumlaki in Indonesia's Tanimbar
Islands, 217 miles east-northeast of Dili, Timor-Leste, and 226 miles of Ambon, Indonesia.
Tsunami warnings haven’t been issued by either the Japan Meteorological Agency or the Pacific Tsunami
Warning Center after the tremor.
GKCA Update
1st to 31st Dec
03 Vice President of the US Joe Biden says US is deeply concerned about
air zone
Dec China's
China Air Zone
Vice-President of the US, Joe Biden, recently told Japanese PM Shinzo Abe that the US is deeply concerned
about China's new air defence identification zone (ADIZ) which is an attempt to unilaterally change the status
quo in the East China Sea. According to Mr Biden the risk of accidents and miscalculations has increases with
the creation of the zone. In order to reduce the risk of escalations, Mr Biden urged China and Japan to improve
communications.
China's establishment of an ADIZ has been strongly criticized by both the US and Japan. The zone includes
islands claimed and controlled by Japan as well as a submerged rock claimed by South Korea. According to
China, aircrafts operating within its ADIZ must follow certain rules such as filing flight plans, or face defensive
emergency measures.
09 Thailand protests: PM dissolves parliament, rejects resignation call
Dec Thailand
After weeks of large anti-government demonstrations in Bangkok, Thai Prime Minister Yingluck Shinawatra
dissolved the parliament and called for new elections. Demonstrators have been calling for Yingluck
Shinawatra to resign and be replaced with a "people's prime minister".
Background:
The current protests in Bangkok were prompted by a botched attempt by Yingluck's government to pass an
amnesty bill that would have opened the door for her brother Thaksin's return. Thaksin was ousted in a
military coup in 2006 and has spent most of the time since then in exile overseas. If he returns, he risks a twoyear prison sentence on a corruption conviction, which he says was politically motivated.
09 Ukraine crisis: President ready to resume EU talks
Dec Ukraine Crisis
Ukraine President Viktor Yanukovych has said that the association agreement between Ukraine and the
European Union may be signed in March 2014 if a compromise is reached.
The government's decision to withdraw from a free-trade deal with the EU last month sparked huge street
rallies. There were protests in Ukraine ongoing since November 2013 due to a massive public outpouring for
closer European integration, as well as the resignation of the government, after the Ukrainian government
suspended preparations for signing an Association Agreement and Deep and Comprehensive Free Trade
Agreement with the European Union. Protesters demanded the resignation of the current government, the
impeachment of the president, and had called for snap elections.
10 Leaked documents reveal US and UK spying on the virtual world of online
games
Dec US –UK Online Games Spying
Leaked documents by former US Security Contractor Edward Snowden have revealed that spies from the US
and UK used to disguise themselves as characters in the fantasy world of online games to carry out surveillance
against terrorists and collect data. Intelligence agents went undercover in online multi-player shooter games,
particularly on Microsoft's Xbox Live Internet community for players. Intelligence agencies feared that online
GKCA Update
1st to 31st Dec
games could serve as meeting places for groups to communicate secretly, move money or plot attacks. The
documents backed the reasoning by referring to ‘America’s Army’ shooter game made by the US military that
is so good at identifying candidates that it is now used for training.
12 Bangladesh Islamist Abdul Kader Mullah hanged for war crimes
Dec Bangladesh
Abdul Kader Mullah, a Bangladeshi Islamist leader and a senior member of the Jamaat-e-Islami party, has been
executed. He was convicted of atrocities committed during the 1971 war of independence with Pakistan. He is
the first person convicted by Bangladesh's International Crimes Tribunal (ICT) to be executed. There were
charges against him of the massacre of unarmed civilians and intellectuals who supported independence from
Pakistan.
13 North Korea’s Kim executes his uncle Jang Song-thaek
Dec North Korea
North Korea executed its second-ranked official Jang Song-thaek — uncle of the current leader Kim Jong-un —
after accusing him of attempting to “overthrow” his nephew with “dirty political ambitions”. Mr. Jang, who
served as the vice-chairman of the National Defence Commission and was seen as the second-most powerful
leader in the reclusive State, was removed from all of his posts last week.
The decision to purge him has come as the clearest indicator yet of power struggles within the North’s ruling
leadership, and has been seen as Kim's attempt to underline his authority in the strongest terms.
15 Nelson Mandela buried in the rolling hills of South Africa
Dec Nelson Mandela
Nelson Mandela, former South African President, was buried in his home village after funeral rituals. Several
thousand gathered in a huge white tent at the Mandela family compound for the state funeral that preceded a
private service at the gravesite.
23 Mikhail Kalashnikov, maker of iconic AK-47 rifle, dead
Dec Russia
Mikhail Kalashnikov, the designer of the assault rifle died at 94. Kalashnikov died in his home city of Izhevsk,
near the Ural Mountains, where his gun is still made.
Background:
In 1938, he was called up by the Red Army and his design skills were used to improve the effectiveness of
weapons and equipment used by Soviet tank regiments. He designed the machine gun after being asked by a
fellow soldier why the Russians could not come up with a gun that would match the ones used by the
Germans. He received many state honours, including the Order of Lenin and the Hero of Socialist Labour.
24 South Sudan witnesses mass ethnic killings
Dec South Sudan
A week of continuous fighting between rival factions has led to alleged mass ethnic killings in South Sudan. The
violence follows a power struggle between President Salva Kiir, a Dinka, and his Nuer ex-deputy Riek Machar.
Witnesses reported that more than 200 people, mostly from the Nuer ethnic group have been shot dead by
GKCA Update
1st to 31st Dec
security forces. Other reports also suggested that gunmen from the majority Dinka ethnic group were shooting
people in Nuer areas. Rebels supporting Mr Machar seized the major towns of Bor and Bentiu. Mr Kiir has
accused Mr Machar, who he sacked in July, of mounting a coup. Mr Machar denies he is trying to seize power,
while the government has denied it is behind any ethnic violence.
26 Japanese Prime Minister Abe visits controversial Yasukuni war shrine
Dec Japan
The Japanese Prime Minister Shinzo Abe visited a shrine infuriating China and South Korea and prompting
concern from the United States.
China and South Korea have repeatedly expressed anger in the past over Japanese politicians’ visits to
Yasukuni Shrine, where Japanese leaders convicted as war criminals by an Allied tribunal after the Second
World War are honoured along with those who died in the battle.
27 Okinawa Governor Approves U.S. Air-Base Plan
Dec Japan
The governor of Okinawa approved a landfill permit that will clear the way for construction of a new base on
Japan's southernmost main island, potentially ending a long-running dispute that has been an irritant to
relations between Japan and the US.
The Futenma airbase, located in a densely populated area, has been problematic for Okinawan residents for
years, mainly due to US military personnel’s alleged and confirmed crimes.
29 Saudi Arabia gives $3bn boost to Lebanese army
Dec Middle-East
Lebanon's President Michel Suleiman announced that Saudi Arabia is giving the Lebanese army $3-billion to
help strengthen the country's armed forces and purchase weapons from France. The Lebanese army has
struggled to contain rising violence linked to the civil war in Syria, a conflict that has inflamed sectarian
tensions in Lebanon and threatened its stability.
The grant amounts to more than twice the Lebanese army’s national budget.