Career makers september2011

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Career makers september2011

  1. 1. September 2011 Volume : 09 Editor D.V.RAGHURAM M.A., P.G.D.H.R.M., D.T.E.M e-mail : sreemedia2010@gmail.com Executive Editor P. SUBHASHINI M.Com NOTE: Printing of this book process through many stages - Writing, Composing, Proof Reading etc. We try our best to make this book error free. if any mistake has inadvertently crept in, we regret it and would be deeply indebted to those who bring it to our notice. We do not take any legal responsibility. The publishers shall be obliged if mistakes are brought to their notice for carrying out correction in the next edition. “Fulfilling a great need.....” Career & Competition Series CONTENTS PERSONS - 3 AWARDS / PRIZES - 4 ENVIRONMENTAL ISSUES - 5 SCIENCE & TECHNOLOGY - 6 PACE RESEARCH - 8 DEFENCE - 11 SUMMITS/ CONFERENCES - 12 ECONOMY GLOSSARY - 14 PROGRAMMES - 16 REPORTS - 17 BANKING SECTOR - 19 COMMITTEES - 23 INTERNATIONAL AFFAIRS - 25 NATIONAL AFFAIRS - 29 SPORTS - 31 CURRENT AFFAIRS QUESTIONS - 32
  2. 2. Career Makers September 2011, Volume: 09 2 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123451234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123451234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123451234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345 FOR SURE SUCCESS IN BANK EXAMS.... READ....... JAYAM SERIES 16-2-875/1, Sayeedabad, Hyderabad - 500 059 Cell: 9290882406
  3. 3. Career Makers September 2011, Volume: 09 3 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 PERSONS Leila Lopes of Angola crowned 60th Miss Universe Leila Lopes from Angola was crowned Miss Universe, smoothly handling an interview question about what physical trait she would change if could, while wearing a strapless cream-colored gown. Lopes, Angola’s first winner, beat out 88 other competitors to win the title during the 60th anniversary of the world’s biggest beauty pageant. She replaces last year’s winner, Ximena Navarrete of Mexico. The first runner-up was 23- year-old Olesia Stefanko of Ukraine and the second runner-up was Priscila Machado of Brazil. The third was Miss Philippines and the fourth Miss China. The globe’s biggest beauty contest is held in Brazil for the first time. The contestants, who must never have been married or had children and who must be at least 18 years of age and under 27 years of age by Feb. 1 of the competition year. Miss Universe 2011, the 60th anniversary of the Miss Universe pageant, will be held at the Credicard Hall, in Sao Paulo, Brazil on September 12, 2011. Ximena Navarrete of Mexico will crown her successor. 89 contestants are participating in this year´s pageant, surpassing the previous record of 86 contestants in 2006. Miss Universe is an annual international beauty contest run by the Miss Universe Organization. The pageant is the most publicized beauty contest in the world with 600 million viewers. The contest was founded in 1952 by California clothing company Pacific Mills. The pageant became part of Kayser- List of Miss Universe titleholders Year Country/Territory Miss Universe National title Location 2011 Angola Leila Lopes Miss Angola Sao Paulo, Brazil 2010 Mexico Ximena Navarrete Nuestra Belleza México Las Vegas, Nevada U.S. 2009 Venezuela Stefania Fernandez Miss Venezuela Nassau, Bahamas 2008 Venezuela Dayana Mendoza Miss Venezuela Nha Trang, Vietnam 2007 Japan Riyo Mori Miss Universe Japan Mexico City, Mexico 2006 Puerto Rico Zuleyka Rivera Miss Puerto Rico Universe LosAngeles, California U.S. 2005 Canada Natalie Glebova Miss Universe Canada Bangkok, Thailand 2004 Australia Jennifer Hawkins Miss Universe Australia Quito, Ecuador 2003 Dominican Republic Amelia Vega Miss Dominican Republic Panama City, Panama 2002 Panama Justine Pasek Senorita Panama Crowned by Donald Trump in NYC 2002 Russia Oxana Fedorova Miss Russia San Juan, Puerto Rico 2001 Puerto Rico Denise Quiñones Miss Puerto Rico Universe Bayamon, Puerto Rico 2000 India Lara Dutta Miss India Nicosia, Cyprus Roth and then Gulf and Western Industries, before being acquired by Donald Trump in 1996. In 1998, Miss Universe changed its name from Miss Universe, Inc. to Miss Universe Organization and the headquarters moved from Long Beach California, to New York City that year. Donald Trump brought in a new team of professionals to the contest headed by its new CEO, Molly Miles, and president Maureen Reidy. The contest would use the slogan "Redefined for Today" for promotion of the pageants.
  4. 4. Career Makers September 2011, Volume: 09 4 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 AWARDS / PRIZES Prem Bhatia award for excellence in reporting, 2011 For the first time since its inception 15 years ago, the Prem Bhatia Awards for excellence in political reporting and analysis, as well as that for excellence in environmental reporting have been shared by two journalists each. The award for political reporting goes to Josy Joseph of The Times of India for his consistently fine reporting of the scandals that have made headlines, like the 2-G Spectrum allocation, Commonwealth Games andAdarsh Housing Society scams. Jyotirmoy Dey of Mid-Day shares the award posthumously for his superlative work all through his career in exposing Mumbai's underworld and corruption in the police and bureaucracy, and he had to pay for that with his life. The two winners of the environmental award are Madhuraj, chief news photographer of Matrubhumi, for his vivid photographs that focused national and international attention on the catastrophic consequences of the use of endosulfan pesticide in Kerala, and G. Nirmala, who has written powerfully on the same subject in one of the publications of Samakalika Malyalam Vaarike. Rajiv Gandhi Khel Ratna award, 2011 Ace Indian shooter Gagan Narang has been conferred India’s highest sporting honour. Arjuna Awards, 2011 Arjuna Awards were instituted in 1961 by the government of India to recognize outstanding achievement in National sports. The award carries a cash prize of Rs 500,000, a bronze statuette of Arjuna and a scroll. The 2011 awardees are: Zaheer Khan (Cricket), Rahul Bannerjee (Archery), Preeja Sreedharan (Athletics), Vijas Gowda (Athletics), Ashish Kumar (Gymnastics), Rakesh Kumar (Kabaddi), Tejaswini Bai (Kabaddi), Rajpal Singh (Hockey), Sanjay Kumar (Volleyball), Sunil Chhetri (Football), Ravi Kumar (Weightlifting), Ravindra Singh (Wrestling), Suronjoy Singh (Boxing), Jwala Gutta (Badminton), Virdhaval Khade (Swimmimg), Sandhya Rani Devi (Wushu), Somdev Devvarman (Tennis) and Prashant Karmakar (Disabled). Dhyan Chand Award, 2011 Former India striker Shabbir Ali, who took up full-time coaching after hanging up his boots, has become the first footballer to get the prestigious Dhyan Chand award as recognition for his lifetime achievement in sports. The other awardees are: Sushil Kohli (Swimming) and Rajkumar (Wrestling) The Dhyan Chand Award is India’s highest award for lifetime achievement in sports and was instituted in 2002. Dronacharya Award, 2011 Inukurthi Venkateshwara Rao (Boxing), Devender Kumar Rathore (Gymnastics), Shri Ramphal (Wrestling), Kuntal Roy (Athletics) and Rajinder Singh (Hockey) have been given the award. Dronacharya Award is an award presented by the government of India for excellence in sports coaching. The award comprises a bronze statuette of Dronacharya, a scroll of honour and a cash component of Rs.500,000. The award was instituted in 1985. Swadhinata Sammanona Award Former Indian Prime MinisterIndira Gandhiwas honoured posthumously with the highest Bangladesh award the Bangladesh Swadhinata Sammanona (Bangladesh Freedom Honour ). The award was meant to honour Indira Gandhi’s for her outstanding contributions to Bangladesh's Liberation War fought in 1971. During the tumultuous days of 1971, the great Indian leader Indira Gandhi had taken a firm, principled stand to side with the oppressed people of then East Pakistan. Under Indira Gandhi’s leadership India sheltered 10 million Bangladeshi war refugees, lobbied for Bangladesh internationally, secured the release of Sheikh Mujib from a Pakistani jail as well as risked a war to hasten Bangladesh’s freedom.The award included a 200 tola gold medal and a citation.Bangladesh President Zillur Rahman presented the award, the highest honour for any foreign national after 40 years of Bangladesh's independence from Pakistan. The award was received by her daughter-in-law Sonia Gandhi who visited Bangladesh at the invitation of Sheikh Hasina. The award recognised Indira Gandhi’s direct support, cooperation, her strong role and unique contribution to Bangladesh’s independence. Bangladesh set up the honours to decorate 47 foreigners who helped the country during its struggle for independence and mark the 40th anniversary of its achievement. Mphasis Universal Design Awards 2011 The National Centre for Promotion of Empowerment of Disabled People (NCPEDP) in
  5. 5. Career Makers September 2011, Volume: 09 5 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 ENVIRENVIRENVIRENVIRENVIRONMENTONMENTONMENTONMENTONMENTALALALALAL ISSUESISSUESISSUESISSUESISSUES association with AccessAbility and BarrierBreak Technologies announced the winners of the NCPEDP-Mphasis Universal Design Awards-2011 in July 2011.The awards honour organisations and individuals for their exemplary work in promoting the cause of accessibility for the disabled. The awards are given out in three categories -- persons with disabilities, working professionals, and companies and organisations on the eve of Independence Day (15 August).The Awards will cover accessibility in the following fields: Built Environment, Transport, Information and Communication Technology, Services and Aids and Appliances. The Total Volume of Arctic Sea Ice Fell to a Record Low in 2010 The total volume of Arctic sea ice fell to a record low in 2010, according to a new study. Scientists at the Polar Science Center of the University of Washington estimated that last year broke the previous 2007 record for the minimum volume of ice, which is calculated from a combination of sea ice area and thickness. Axel Schweiger of University of Washington, led the study. According to the scientists, ice volume is now plunging faster than it did at the same time last year when the record was set. The Arctic sea ice area fell below 4.6 million sq km recently, compared with the record low of 4.13 million sq km in 2007, whereas the minimum ice extent in the early 1970s was 7 million square km. Delhi to have world- class institute on climate change Delhi will soon have a world- class institute that will impart training to people and chalk out strategies to curb the effects of climate change, CM Sheila Dikshit said. Replying to a short duration discussion on environment in New Delhi on Thursday, Dikshit said her government has decided to set up Mahatma Gandhi Institute for Combating Climate Change at Bakauli spread over an area of 18 acres. "The institute will come up in the campus of Mahatma Gandhi Institute of Integrated Rural Energy Planning and Development which is presently under utilised," she said. Noting that multi-pronged strategies are needed to control pollution in the city which has 65 lakhs vehicles, she said her government was also looking for a technology to generate energy from the waste. "The number of vehicles is much more than number of total vehicles in other metro cities together," she said. Around 8,000 metric tonne garbage is being generated in Delhi on daily basis, she said. To control air pollution in Delhi, air ambience fund has been created by imposing a fee of Rs 0.25 per litre of diesel sale in Delhi, she added. For promotion of vehicles operated with clean fuel, the government is giving subsidy to battery operated vehicles from air ambience fund, Dikshit said. Impact of Climate Change on Agriculture The Indian Council for Agriculture Research (ICAR) initiated a project titled “Impact, Adaptation and Vulnerability of Indian Agriculture to Climate Change” in 2004 to study the impact of climate change and global warming on agriculture crops, horticulture, forests, livestock, fishery etc. The Government has prepared the National Mission for Sustainable Agriculture under National Action Plan on Climate Change. The Mission identifies 10 key dimensions for promoting sustainable agriculture practices which will be realized by implementing a Programme of Actions that covers both adaptation and mitigation measures through four functional areas, namely Research & Development, Technology Products & Practices, Infrastructure and Capacity Building and sponsored research. In Projects in Eco-Sensitive Areas The Ministry of Environment and Forests has issued the Environmental ImpactAssessment (EIA) Notification in September, 2006 mandating prior environmental clearance for developmental projects and activities as detailed in the Schedule to this Notification. The project proponents are required to undertake preparation of the Environmental Impact Assessment (EIA) Reports, based on the Terms of Reference, for appraisal of the project for the environmental clearance.The Notification further prescribes under General ndition the procedure for consideration of projects within 10 kms. from the boundary of notified Eco-Sensitive Areas and Protected Areas, notified under Wildlife (Protection) Act, 1972.
  6. 6. Career Makers September 2011, Volume: 09 6 addition, a new scheme namely “National Initiative on Climate Resilient Agriculture (NICRA)” has been launched in year 2011 to enhance resilience of Indian agriculture against climate change. As per the Greenhouse Gas Emission Inventory 2007 published under the aegis of Indian Network for Climate Change Assessment (INCCA), agriculture sector contributes to 17% of the net green house gas emissions from India in 2007. ICAR and different State Agriculture Universities have been evolving technologies to reduce emissions from agriculture sector without compromising the food grain production. These tchnologies include improved irrigation management techniques, cultivation of aerobic rice, System of Rice Intensification (SRI) and use of neem-coated urea. 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 SCIENCE & TECHNOLOGY World’s First Double Leg Transplant Doctors in Spain performed on 15 July 2011 the world’s first double-leg transplant, giving two new legs to a man whose legs were severed in an accident.The man lost both of his legs above the knee in an accident and the attempts to fit him with artificial limbs were not successful.Pedro Cavadas of La Fe hospital in Valencia performed the operation. He is the first doctor in the world to successfully transplant a jaw and a new tongue while doing a face transplant. Intel develops world’s smallest data centre Chip maker Intel is showing off what they are calling the world’s smallest data centre. Dubbed as “Cloud-in-a-Box” system, the Intel unit is designed to be used as a demonstration tool to illustrate the power and efficiencies of cloud com- puting. Intel is powering the unit with Xeon processors, but they are also promoting several other security and optimisation technologies like Intel AES New Instructions for more effi- cient encryption, Intelligent Power Node Manager to better control power needs for increased server density and Intel's Virtualisation Technology. Intel anticipates that by 2015, 2.5 billion people with more than 15 billion devices will access the Internet. By then, online traffic will reach a zettabyte or ‘one million mil- lion billion bytes’. Intel foresees that soon com- panies will have to develop data centres with smaller footprint, which are at the same time secure and energy-efficient. According to the company, their new technology will cater to this necessity and will help companies to deploy cloud faster than ever before. The “Cloud Vision 2015”, Intel’s futuristic vision, anticipates an environment where cloud data cen- tres are seamlessly and securely connected, fully automated “with little or no human interaction and client-aware” providing secure ac- cess and optimal experience across a range of devices, from smartphones to notebooks. Sriharikota to be an assembling hub The Indian Space Research Organisation (ISRO) is drawing up plans to develop the Satish Dhawan Space Centre at Sriharikota into a centre for assembling satellites and rockets in the near future. “Our vision is a quantum jump in satellites and launch ve- hicles to be dealt with in future years. The space port in Sriharikota should further develop into an area where the industries in India working for space would come together, as- semble satellites and rockets there and move to the launch pad,” ISRO Chairman K. Radhakrishnan said. He was addressing a meet- ing after the inauguration of the Oceansat-2 ground station at the Indian National Centre for Ocean Information Services (INCOIS) in Hyderabad recently. ISRO and INCOIS were working together in the area of en- vironment and climate monitoring, he said, adding that INCOIS was sending forecast to coastal areas based on inputs received from Oceansat-2 launched two years ago. Japanese ‘K’ Com- puter The Fujitsu-designed K Computer, was recently announced the winner of the biannual Top 500 supercomputer list at the Interna- tional Supercomputing Conference (ISC) held in Hamburg. It is three times faster on the Linpack high-per- formance computing (HPC) bench- mark than last winner, the Tianhe-
  7. 7. Career Makers September 2011, Volume: 09 7 First renewable energy-based mini-grid system On Jluy 1, 2011, a renewable energy-based smart mini-grid system, the first of its kind in the country, was formally commissioned on the campus of The Energy and Resources Institute (TERI) in Gurgaon. The system, which uses advanced digital and control techniques, has been designed and developed by TERI, with support from the Union Ministry of New and Renewable Energy and others. A smart mini-grid is an intelligent electricity distribution network, operating at or below 11KV, to provide electricity to a community. The smart mini-grids use advanced sensing, communication and control technologies to generate, manage, distribute and utilise electricity at the local distribution levels more intelligently and effectively. The system intelligently manages and balances multiple loads through inter- connected energy resources, providing rapid responses to network disturbances, minimising outages and preventing black-outs. The electricity is supplied by a diverse range of Distributed Energy Resources (DERs) and typically include small conventional generators such as diesel gensets, and/or a range of renewable generators such as solar PV, micro-hydro power plants, wind turbines, biomass etc. These smart mini-grids can be wisely used to strengthen the country’s electricity sector and also enhance the performance of rural electricity supply systems. 1A. K Computer is capable of over eight quadrillion calculations per second with an Rmax score of 8.16 petaflops. This makes it more pow- erful than the next five systems in the top 10 combined. Unlike previ- ous winners, K Computer does not use graphical processing units (GPUs), such as those made by Nvidia, nor does it use x86 proces- sors from Intel and AMD; instead, it is based on Fujitsu- designed Sparc processors. K Computer is based at the independent Riken research lab in Japan. Riken caries out research in physics, chemistry, medical science, biology and engineering. It needs to be noted here that Japan was last home to the world’s most powerful Top 500 system in 2004, with the 36- teraflop Earth Simulator. In the new Top 500 list, Tianhe-1A of China came second and US Oak Ridge National Lab’s Jaguar came third. National Optical Fibre Network The Telecom Commission has recommeneded the Scheme for creation of National Optical Fiber Network (NOFN) for providing Broadband connectivity to Panchayats. The objective of the scheme is to extend initially the ex- isting optical fiber network which extends upto districts HQ's/Block HQ's level upto the Gram Panchayat level by utilizing Universal Service Obligation Fund (USOF) .The cost of the initial phase of the NOFN scheme is likely to be in the region of RS 20,000 crore. Similar amount of investment is likely to be made by private sector complementing the NOFN infrastructure while providing services to individual users. A High Level Committee (HLC) to steer and coordinate all activities related to the creation and implementation of NOFN was earlier constituted by DOT on 26th April 2011 under the Co- Chairmanship of Sam Pitroda, Adviser to PM on Public Information, Infrastructure and Innovation and Nandan Nilekani, Chairman, UIDAI. The HLC has already held 3 meet- ings and has initiated steps to put the implementation on a fast track. ASpecial Purpose Vehicle (SPV) will assume the responsibility for execu- tion of the project after approval of the scheme by the cabinet. The SPV will be finally owned by the Govern- ment/USOF. The BSNL has been entrusted with the task of undertak- ing the preparatory activity for project execution and establishment of the SPV. Green Growth The government of India re- cently announced the setting up of a high-level expert group to assess the impact of economic growth on environment. The expert group has been constituted under environment economist Partha Dasgupta to pro- vide a roadmap for Green National Accounting System (GNA) to evalu- ate impact of economic growth on environment by 2015. The group is set up jointly by the Planning Com- mission and Ministry of Environ- ment. The panel will also include distinguished economists Nitin Desai, Vijay Kelkar and Kirit Parikh. The committee has been mandated to evaluate the environmental and ecological implications of high GDP growth on ecology and biodiversity. Largest water mass Two teams of astronomers has discovered the largest and farthest reservoir of water ever detected in the universe. The water, equivalent to 140 trillion times all the water in the world’s ocean, surrounds a huge, feeding black hole, called a quasar, more than 12 billion light-years away. A quasar is powered by an enormous black hole that steadily consumes a surrounding disk of gas and dust. As it eats, the quasar spews out huge amounts of energy. Both groups of astronomers studied a particular quasar called APM
  8. 8. Career Makers September 2011, Volume: 09 8 08279+5255, which harbours a black hole 20 billion times more massive than the sun and produces as much energy as a thousand trillion suns. Astronomers expected water vapour to be present even in the early, distant universe, but had not detected it this far away before. There’s water vapour in the Milky Way, although the total amount is 4,000 times less than in the quasar, because most of the Milky Way’s water is frozen in ice. Water vapour is an important trace gas that reveals the nature of the quasar. In this particular quasar, the water vapour is distributed around the black hole in a gaseous region spanning hundreds of light-years in size. Its presence indicates that the quasar is bathing the gas in X-rays and infrared radiation, and that the gas is unusually warm and dense by astronomical standards. E. coli Infection E. coli stands for Escherichia coli — bacteria (germs) that cause severe cramps and diarrhoea. E. coli is a leading cause of bloody diarrhoea. The symptoms are worse in children and older people, and especially in people who have another illness. E. coli infection is more common during the summer months and in northern states. Symptoms of E. coli Infec- tion: (a) bad stomach cramps and belly pain. (b) Vomiting. (c) Diarrhoea, sometimes with blood in it. Complications related to E. coli: The most common complication is called haemolytic uremic syndrome. People with this problem get haemolytic anaemia (which is a low red blood cell count), thrombocytopenia (which is a low platelet count) and renal failure (which is kidney damage). Haemolytic uremic syndrome is more common in children. It can cause acute renal failure in children. This problem starts about 5 to 10 days after the diarrhoea starts. Recent Outbreak of E. coli: A new strain of E. coli containing gens from two distinct groups of enters aggregative E. coli (EAEC) and enter haemorrhagic E. coli (EHEC) has hit European nations. This outbreak of E. coli linked to contaminated salad vegetables had caused at least 22 deaths and hundreds of infections in Germany, Sweden and other countries. 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 SPACE RESEARCH NASA's GRAIL Mission: Studying the Moon from Crust to Core You can get as poetic about the moon as you want — and everyone from lovers to lyricists to astronauts has had a go at it. But the fact is, the thing's a lump — beautiful, to be sure, but a lump all the same, created more than 4 billion years ago when a Mars-size planetesimal whizzed by, collided with Earth and blasted out a mass of molten debris that eventually cooled into the moon. In fact, the moon is a series of lumps within lumps. Even as it was congealing, it did so unevenly, with scattered areas of high density that senologists labeled mascons — for mass concentrations. The highlands and plains are made of differing materials too. Higher local density means stronger local gravity, which can not only wreak havoc on precisely calibrated spacecraft orbits but can also reveal a lot about the innards and the history of the moon itself — provided you know how to read those gravitational flutters. NASA is preparing to do just that, launching the GRAIL mission (Gravity Recovery and Interior Laboratory) on a nine-month journey to deepen our understanding of Earth's closest neighbor. The GRAIL spacecraft, which launched on Sept. 10, is actually two spacecraft, each about the size of a washing machine. Named, prosaically enough, GRAIL- A and GRAIL-B, they were lofted aboard the same booster and then released in space for separate but closely coordinated flights to the moon. A translunar journey typically takes less than three days, but the GRAIL ships will exceed that by just
  9. 9. Career Makers September 2011, Volume: 09 9 25th nuclear power plant India is moving forward with nuclear power generation despite worldwide concerns about the safety of civilian nuclear power electricity generation after the March disaster in Japan’s Fukushima complex. India recently began construction of its 25th atomic power plant and announced to build four more indigenous 700 MW units than planned earlier. The first pour of concrete for the 700 MW indigenous Pressurized Heavy Water Reactor (PHWR), the seventh nuclear plant at the Rajasthan Atomic Power Station (RAPS), took place about 65 km from Kota. RAPS currently operate six PHWRs at the facility, five of which are producing more than 1,180 MW, India’s largest nuclear power electrical generation from a single facility. The new complex will be RAPS’ seventh nuclear power plant built at the Rajasthan site. The 700-megawatt PHWR was designed by NPCIL by scaling up the design of its 540-megawatt PHWRs operating at Tarapur since 2005. The new RAPS facility is expected to be completed by 2016. a bit — not arriving until New Year's Eve in the case of GRAIL-A and New Year's Day in the case of GRAIL-B. Rather than covering the 239,000- mi. (385,000 km) distance from the Earth to the moon in a straight, as- the-crow-flies shot, the ships will follow a looping, 2.5-million-mi. (4 million km) trajectory. The longer route and slower speed allow the spacecraft to carry less fuel and ensure that when they do arrive at the moon they can be inserted into orbit more precisely — and precision is everything when it comes to the GRAILs. During the three months the ships will spend actively studying the moon — from early March to late May — they will maintain a distance of 100 to 225 km (62 to 140 mi.), depending on what part of the lunar anatomy they're surveying. A tracking system aboard the ships will measure any change in range between the two within a difference of a few microns — or about the size of a red blood cell. And that shifting distance is exactly what the scientists will be looking for. Flying over a mascon will be like driving over a speed bump, jolting the two ships and causing them to shake a bit relative to each other. The denser the mass concentration — and the bigger the gravity jolt — the greater the degree of disruption will be. "We'll use the moon's gravity to tell us what's inside the moon, all the way down to the core," says principal investigator Maria Zuber of MIT. NASA is prepared for glitches and false positives in the data. No unmanned spacecraft have ever flown in such balletic tandem around another world, and flight planners will thus be refining their navigational skills in real time. Even the solar wind — the stream of charged particles that flow outward from the sun — could disrupt the readings. Indeed, one more reason for the roundabout translunar route was so that scientists could measure the wind precisely and correct for it as the data is analyzed. Assuming the mission achieves what it's designed to achieve, the GRAILs will do more than reveal new insights about the innards of the moon and the origins of the solar system. They will also help NASA select promising sites for future lunar landings. Such ambitious future missions, of course, require both funding and programmatic clarity that are nowhere in evidence at the moment. But in the event policymakers ever do set their sights moonward again, GRAIL will help tell them precisely where to aim. T.K. Anuradha, Pramodha Hegde & K.S. Anuradha For the first time in the history of the Indian Space Research Organisation, three senior women scientists monitored and carried out crucial manoeuvres of the communication satellite GSAT-12 which was launched on July 22, 2011. Project Director of GSAT-12 T.K. Anuradha, Mission Director Pramodha Hegde and Operations Director K.S. Anuradha, who have been with ISRO for over two decades, were involved in crucial tasks undertaken before declaring the satellite fully operational. Oceansat-2 ground station inaugurated in Hyderabad A state-of-the-art Oceansat- 2 ground station was inaugurated on September 12 by Union Minister Vilasrao Deshmukh at the Indian National Centre for Ocean Information Services (INCOIS) at Hyderabad. The Department of Space and INCOIS established the ground station to receive and process data from Ocean Colour Monitor on- board the Indian Remote Sensing Satellite Oceansat-2 in real time. The Oceansat-2 ground station, fitted with a 7.5 m diameter antenna, could cover an area of 5,000 km diameter circle, covering the Bay of Bengal on the east and the Arabian Sea on the west, a note issued by INCOIS on the occasion said. The ground station consists of various sub-systems like antenna and feed system, radio frequency and tracking, base band, automation, modulation and de- modulation systems, direct archival and quick—look browsing and
  10. 10. Career Makers September 2011, Volume: 09 10 Oceansat data production generation system. INCOIS said, the 7.5 meter diameter antenna system at the new ground station could also be used to receive data from satellites launched by ISRO in the future study of oceans. The chlorophyll data received from OCM at the ground station would be integrated with Sea Surface Temperature from NOAA satellites for providing the Potential Fishing Zone (PFZ) advisory services. The PFZ advisories generated by INCOIS using Oceansat-2 data advise fishermen on the optimal locations for fishing. INCOIS said an estimated 65,000 users regularly access the PFZ service, thereby benefiting by 60-70 per cent reduction in search time for fish shoals and 2-3 times increase in net profit. “The recent study, carried out by National Council of Applied Economic Research, on the socio— economic benefits of PFZ advisory services and ocean state forecasts, has estimated the net annual benefits to be in the range of Rs 34,000 to Rs 50,000 crore due to scientific identification of PFZs based on satellite information,” INCOIS said. Andhra Pradesh Chief Minister N Kiran Kumar Reddy, ISRO chairman K Radhakrishnan, Secretary in the Ministry of Earth Sciences Shailesh Nayak, Incois director Satheesh Shenoi and other officials were present on the occasion. NASA launches twin satellites bound for moon Twin satellites blasted off aboard a rocket September 10 on a mission to unveil the inner secrets of the moon, the US space agency NASA said. The Grail spacecraft launch at 9.08 am aboard a Delta II rocket from an Air Force base adjacent to NASA’s facilities at Cape Canaveral, Florida. The blastoff had been postponed twice due to bad weather on September 8th and 9th. The two small Grail spacecraft - which are about the size of washing machines - will fly in formation above the moon’s surface to map its gravity. “Trying to understand how the moon formed, and how it evolved over its history, is one of the things we’re trying to address with the Grail mission,” said researcher Maria Zuber of the Massachusetts Institute of Technology. By measuring variations in gravity across the moon’s surface over three months, scientists hope to learn how the interior formed, which should also provide general clues about how rocky planets form, Ms. Zuber said. Atlantis Returns The 135th, and final, space-shuttle mission was completed recently with the safe return of Atlantis back to earth after making resupplies to the International Space Station and deliver an experiment intended to help develop a refuelling system for telecommunications satellites. The STS-135 crew consisted of Commander Chris Ferguson, Pilot Doug Hurley, Mission Specialists Sandra Magnus and Rex Walheim. They delivered more than 9,400 pounds of spare parts, spare equipment and other supplies in the Raffaello multi-purpose logistics module - including 2,677 pounds of food - that will sustain space station operations for the next year. The 21- foot long, 15-foot diameter Raffaello brought back nearly 5,700 pounds of unneeded materials from the station.Atlantis will now become a museum piece, on display at the space centre. STS- 135 was the 33rd and final flight for Atlantis, which spent 307 days in space, orbited Earth 4,848 times and travelled 125,935,769 miles. The end of the shuttle programme, which leaves America without the ability to launch people into orbit for the first time since 1962, has been the subject of much controversy between those who think manned space flight a waste of money and those who see space as the country’s manifest destiny and the final frontier of human exploration. Alternative systems for launching humans, employing singleshot rockets, are under development by severalAmerican companies. In the meantime,American astronauts bound for the space station will have to hitch a lift with the Russians.
  11. 11. Career Makers September 2011, Volume: 09 11 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 DEFENCE Nod given to develop Gujarat's Deesa Airport as air base The Defence Ministry has approved a proposal to develop Deesa Airport in North Gujarat as a full fledged air base, a top IAF officer said. "We had mooted this proposal to the Defence Ministry, which has granted approval. The first phase of the project will cost over Rs 3,000 crore," saidAK Gogoi Commanding in Chief, South Western Air Command (SWAC). Considering the strategic importance of the airport, it was thought fit to develop a full-fledged air base at Deesa, which is close to the Pakistani border, he told reporters after induction of 25 squadron at IAF station in Vadodara on Thursday. The IAF base at Jodhpur will have a permanent squadron of SU- 30 fighter jets in the next couple of years, he said. Two squadrons armed with Akash, the medium range surface to-air missile, are set to be deployed in Pune and Gwalior. Six more squadrons will be deployed for checking any threat from China, Gogoi said. To a question on shortage of aircraft, he said "IAF is expecting to expand the fleet of its fighters after 2012. This will lead to increase in the number of squadrons." "We are getting upgraded MIG aircraft from Russia. Five such aircraft are expected to arrive soon," he said. "SWAC is in the process of strengthening surveillance by inducting a few state-of-the-art Medium Power Radars (MPRs)," Gogoi said. "The MPR has been developed with a view to detect small targets at ranges greater than 300 km," Gogoi said. Talking about 25 Squadron, popularly known as Himalayan Eagle', he said it was formed on 1st March 1963 in the wake of 1962 Chinese aggression in the Northern Sector. The unit, equipped with AN- 32 aircraft, has been adjudged the best transport unit in the IAF three times. Russia successfully test-launches ballistic missile Russia on August 27 successfully test launched its Bulava inter-continental ballistic missile to its maximum range of 8,000 km, in a boost to the country's defence capabilities. The missile was fired successfully by the White sea-based Russian nuclear submarine Yuri Dolgoruky, the Defence Ministry said. The successful launch of the Bulava came after a string of setbacks suffered by this programme. Only eight of its previous 15 launches were officially declared successful. "The regular launch of the missile was conducted at 7:20 am Moscow time from a submerged position from the regular carrier in line with the state flight development tests at a maximum flight range of the missile," a defence ministry spokesman was quoted as saying by Russian news agency Ria Novosti. The missile successfully reached its target in the Pacific Ocean in accordance with the necessary shipping security measures, the spokesman said. The successful test of the missile was reported to President Dmitry Medvedev by the defence minister Anatoly Serdyukov. The Bulava, expected to become Russia's main naval strategic missile, is capable of carrying 10 warheads with a range of 8,000 km. The first test launch from the Yuri Dolgoruky was conducted on June 28, 2011. Before that the missiles were fired from the typhoon-class Dmitry Donskoy submarine. The three-stage missile is specifically designed for deployment on Borey class nuclear submarines. Project ‘SANGAM’ A software project ‘SANGAM’ for defence pensioners has been launched. The project ‘SANGAM’ will provide useful Management Information System (MIS) to the financial planners in the Ministry of Defence. Project ‘SANGAM’ is a software which will facilitate issuance of corrigendum pension payment orders. This will address the demand from the ex- servicemen for issue of individual corrigendum pension payment order consequent to implementation of recommendations of Sixth Central Pay Commission (6th CPC). This software project is one step forward from the project ‘SUVIGYA’ which was launched in October last year on the occasion of Defence Account Department Day and is very popular among defence pensioners. There are about 18 lakh defence pensioners who will be benefitted with the launch of project ‘SANGAM’ in the long run. It will also help in grievance redressal of pensioners with regard to the correctness of payment of pension.
  12. 12. Career Makers September 2011, Volume: 09 12 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 SUMMITS/ CONFERENCES 5th India-EU Seminar on Employment and Social Policy - Occupational Safety & Health’ The 5th India-EU seminar on Employment and Social Policy - Occupational Safety & Health is commencing on Monday 19th,2011 at Symposia Hall, Indian Council of Agricultural Research, National Agriculture Science Centre (NASC)Complex, Dev Prakash Shastri Marg, New Delhi. The two day seminar will be inaugurated and chaired by Union Minister for Labour & Employment Shri Mallikarjun Kharge and be attended by senior officials from the European Commission and from the member countries of European Union. Ministers from some countries are also likely to attend the seminar. The senior representatives from Workers’ organizations, Employers’ Organisation and senior officers from of various State Governments and Central Ministries/Departments of Govt. of India will also be participating in the seminar. The seminar will have four sessions spread over two days in which deliberations on the following issues will be made : “Overview of OSH Institutional Framework in India and the European Union”; “Effective and "Topical Issues in Occupational Health Management" The seminar is in the sequence of a Joint Action Plan entered in between India and European Union (EU) to have a policy dialogue and cooperation in the fields of employment and social policy. Accordingly, the Ministry of Labour & Employment, Government of India has signed an Memorandum of Understanding (MOU) with the European Commission to strengthen dialogue and exchange of views and information on issues of common interests within the area of employment and social policy such as: skills, training and employment, social security, occupational health and safety; workers’ participation in management; and other relevant issues jointly identified. The structured dialogue consists of exchanges of experience, best practice, views and information on topics of common interest, trends and policy developments related to the above areas. As a part of this structured dialogue, it has been agreed upon to organize a joint seminar on mutually identified issues every year. These seminars will bring together EU and India government experts, social partner representatives, academic experts and other relevant stakeholders to exchange views, information, experience and best practice on topics of common interest. As a result, the first Seminar on Skills Development and training was held on 27-28 November, 2006 at New Delhi. The second seminar on social security and social protection was held on 17-18 September, 2007 at Lisbon, Portugal. The third Seminar on “Employment Relations and Resolution of Conflicts” was organized on 22nd & 23rd September, 2008 at New Delhi. The 4th India-EU Seminar on the `Skills and Jobs’, with a particular focus on the impact of the global crisis and recovery was held in Brussels from 5th to 6th July, 2010. India Convenes meeting of BRICS Finance Ministers in Washington DC on September 22, 2011 The Union Finance Minister Shri Pranab Mukherjee said that India is convening a meeting of BRICS Finance Ministers in Washington DC on September 22, 2011 on the sidelines of the Fund-Bank and G-20 Meetings. The Finance Minister said that we would explore the manner in which BRICS could coordinate in addressing the evolving economic and financial situation in the various countries of the world. The Finance Minister Shri Mukherjee said that the objective of the meeting is to discuss our concerns regarding the current state of the Global Economy and our Policy Response. Shri Mukherjee said that we will discuss the progress on the report commissioned by India on the role that BRICS can play in the global economy going forward, and also our role in the international financial institutions such as IMF and the World Bank. Rio+20 UN meet to focus on sustainable building The impact of the building sector on climate change, sustainable construction and green buildings will have to be on the top of the agenda of the Rio+20 United Nations Conference on Sustainable Development, according to Mr Arab Hoballah, Chief, Sustainable Consumption and Production Branch, United Nations Environment Programme. The world cannot afford to miss this opportunity as the built-up
  13. 13. Career Makers September 2011, Volume: 09 13 space accounts for one-third of the Green House Gas emissions globally, and consumes nearly half the world's energy and resources. At the Rio +20 UN conference to secure renewed political commitment for sustainable development, the challenge of creating a sustainable building sector will have to be brought to the fore. The opportunity was missed out earlier and does not figure in the Kyoto Protocol because of the lack of awareness two decades back on this issue. Addressing the International Green Building Conference 2011 organised by the Building and Construction Authority, a Singapore Government body that regulates real estate development, he said, a multipronged approach is needed in the form of multilateral agreements, economic and fiscal incentives and regulatory regimes. Population growth and economic development are driving the demand for buildings with the major growth regions being China, Asia, Latin America and Africa. By 2030 more than 80 per cent of the population will be living in cities where housing will be needed for three billion people. The UNEP green economic report released in February looks at the investments needed to make the process of development sustainable. Two of the 11 chapters deal with buildings and cities. These two also have a direct impact on most of the other sectors the report deals with – agriculture, forest, manufacturing, tourism, transport, water and energy. Conference on Public Private Partnership in National Highways A Conference on “Public Pri- vate Partnership (PPP) in National Highways: Challenges and Opportu- nities” organized by the Ministry of Road Transport & Highways with the assistance of the Planning Commis- sion concluded in New Delhi at Sep- tember 12. The one-day conference was inaugurated by the Prime Minis- ter, Dr. Manmohan Singh. The Union Minister for Road Transport & High- ways, Dr. C. P. Joshi gave a broad overview of the “Vision Ahead” of the Ministry and the Deputy Chairman of Planning Commission, Dr. Montek Singh Ahluwalia delivered the key- note address. The Ministers of State for RT&H, Shri Jitin Prasada and Dr. Tusharbhai A. Choudhary also ad- dressed the inaugural session. Rabi Conference 2011 The National Conference on Agriculture for Rabi Campaign-2011 will begin in New Delhi on Septem- ber 14. Strategy for the forthcoming rabi season will be deliberated upon and finalized during the two day Conference. Discussion on progress in sowing of crops during the cur- rent kharif season will also take place. Kharif assessment and rabi planning, possibility of additional areas under boro/summer rice, pulses and wheat, procurement plan for ensuring timely supply of inputs to farmers and promotion of micro- nutrients are some of the important issues on the agenda of the Con- ference. Centrally sponsored flag- ship schemes of the Ministry of Ag- riculture will also be discussed dur- ing the Conference. The Conference will be inau- gurated by Shri Sharad Pawar, Min- ister of Agriculture and Food Pro- cessing Industries. The Conference will be at- tended by Senior Officers of State Agriculture Departments, experts and representatives of the con- cerned ministries, scientists from ICAR, other research institutes and crop directorates. Twenty-Second World Mining Congress Twenty-Second World Mining Congress and Expo was held at Istanbul, Turkey between 11-16 September 2011. World Mining Congress & Expo is a unique opportunity for companies and manufactures to showcase their latest achievements and equipment technologies to a wide audience especially to t h o s e officials and specialists from all over the world.
  14. 14. Career Makers September 2011, Volume: 09 14 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 ECONOMY GLOSSARY India and Malaysia FTA The free trade agreement (FTA) between India and Malaysia has come into force from July 1, 2011. The Indian Government has assured that sensitive sectors like agriculture, fisheries, textiles, chemicals and automobiles have been given protection from imports without duty or with significant cuts. India-Malaysia CECA is India’s fourth bilateral Comprehensive Economic Cooperation Agreement, after Singapore, South Korea and Japan. The India-Malaysia CECA also facilitates cross-border investments between the two countries. It aims to promote investments and create a liberal, facilitative, transparent and competitive investment regime. The CECA creates an attractive operating environment for the business communities of both countries to increase bilateral trade and investment. Benefits: 1. This FTA is likely to provide greater opportunity to Indian professionals professionals in commercially meaningful sectors including accounting and auditing, architecture, urban planning, engineering services, medical and dental, nursing and pharmacy, Computer and Related Services (CRS), and Management Consulting Services to have access to the key South-EastAsian nation and render their services to them. 2. Besides that like basmati rice, mangoes, eggs, trucks, motorcycles and cotton garments, will attract lower or no duty in Malaysia with the implementation of the Comprehensive Economic CooperationAgreement (CECA) and therefore would have better access in Malaysian markets. 3. Further, the CCEAwould facilitate temporary movement of business people, including contractual service suppliers and independent professionals in accounting, architecture, engineering services, medical and dental, nursing and pharmacy, computer services and management consulting. 4. It has been expected that the agreement will also help boost crossborder investment between the two countries, which achieved bilateral trade of USD 10 billion in the fiscal year of 2010-11, an increase of 26 per cent from the previous year. With the implementation of this agreement the bilateral trade is likely to touch US$15 billion by 2015. Cloud Computing Cloud computing is a comprehensive solution that delivers IT as a service. It is an Internet-based computing solution where shared resources are provided like electricity distributed on the electrical grid. Computers in the cloud are configured to work together and the various applications use the collective computing power as if they are running on a single system. The flexibility of cloud computing is a function of the allocation of resources on demand. This facilitates the use of the system’s cumulative resources, negating the need to assign specific hardware to a task. Before cloud computing, websites and server-based applications were executed on a specific system. With the advent of cloud computing, resources are used as an aggregated virtual computer. This amalgamated configuration provides an environment where applications execute independently without regard for any particular configuration. Thus Cloud computing is a paradigm for large- scale distributed computing that makes use of existing technologies such as virtualization, service- orientation, and grid computing. It offers a different way to acquire and manage IT resources on a large scale. A simple example of cloud computing is webmail. The webmail provider maintains the server space and provides access; the webmail user just plugs a web address into a browser and submits user information to access an account. Benefits of the Cloud Computing: (a) Reduced cost: Cloud computing can reduce both capital expense and operating expense costs because resources are only acquired when needed and are only paid for when used. (b) Refined usage of personnel: Using cloud computing frees valuable personnel allowing them to focus on delivering value rather than maintaining hardware and software. (c) Robust scalability: Cloud computing allows for immediate scaling, either up or down, at any time without long-term commitment. Global economic growth to slow down to 3.1% in 2011: UNCTAD Projecting a slowdown in global economic growth in 2011 to around 3 per cent, compared to almost 4 per cent last year, a UN agency said developing economies could be affected by recession in developed nations. "The pace of global economic recovery has been slowing down in 2011... This year,
  15. 15. Career Makers September 2011, Volume: 09 15 world Gross Domestic Product (GDP) is expected to grow by 3.1 per cent, compared to 3.9 per cent in 2010," the United Nations Conference on Trade and Development said in a report released. It said the developing economies have sustained their strong growth path, despite the recent global downturn, mainly due to domestic demand. "However, they must face financial instability and speculative capital flows generated in developed economies and would not be spared by a new recession in the North," UNCTAD's Trade and Development Report 2011 (TDR 2011) said. Projecting a slowdown in global economic growth in 2011, UNCTAD said private demand alone is not sufficient to maintain momentum of recovery due to high unemployment and stagnant wages in many countries. While developing economies are expected to regain the pre-crisis growth rate of 6 per cent this year, growth in developed economies is expected to be between only 1.5-2 per cent, it said. Regarding South Asia, of which India is a part, UNCTAD said the region is likely to be among the best performers with a growth of 7 per cent in 2011. "Although growth in developing countries has become more and more dependent on the expansion of domestic markets, these countries face significant external risks because of economic weakness in the developed economies and a lack of significant reforms in international financial markets," UNCTAD said. It said that emerging economies remain vulnerable to trade and financial shocks that could strongly affect volume of their exports and the prices of primary commodities, as happened in 2008. The report said that growth in US is likely to remain low on account of low domestic demand, stagnating wages and employment and low interest rates. The debt crisis, along with spreading fiscal austerity, is also expected to act as a drag on the global growth. According to the TDR 2011, trade remains an area of concern, especially for the richer nations. "In 2011, the volume of international trade is expected to return to single-digit from 14 per cent in 2010, particularly in developed economies. Recovery of trade has been faster in developing than in developed economies," it said. Financial Inclusion Necessary for Inclusive Growth Financial inclusion is necessary for inclusive growth. To extend the reach of banking to those outside the formal banking system, the Union Finance Minister Shri Pranab Mukherjee in his Budget Speech 2010-11 had stated that the Government has decided to provide appropriate banking facilities to habitations having population in excess of 2000 (as per 2001 census) by March, 2012. Accordingly, 73,000 such habitations across the country have been identified and allocated to Public Sector Banks, Regional Rural Banks, Private Sector Banks and Cooperative Banks for extending banking services by using the services of Business Correspondents and other models, with appropriate technology back up by March, 2012. According to Dr. Rangarajan Committee Report on Financial Inclusion (2008), the reach of rural cooperatives in terms of number of clients and accessibility is better but the health of a very large population of rural credit cooperatives has deteriorated significantly. RBI guidelines on KYC (Know Your Customer) are similar to both Commercial Banks and Urban Cooperative Banks. Primary Agriculture Cooperative Societies (PACS) affiliated to District Central Cooperative Banks and State Cooperative Banks were having a deposit base of Rs.26,245 crore as on 31.3.2009 that increased to Rs.35,286 crore as on 31.3.2010 registering an increase of 34.45%. The loans issued by such Primary Societies (PACS) were of the order of Rs.58,787 crore as on 31.3.2009 and Rs.74,938 crore as on 31.3.2010 registering an increase 27.47% over the previous year. New set of coins and Rs 10 notes On July 8, 2011, Finance Minister Pranab Mukherjee launched a new set of coins and Rs 10 notes bearing the rupee symbol. With this India became the second country after England to have its currency symbol printed on its notes.
  16. 16. Career Makers September 2011, Volume: 09 16 Janani Shishu Suraksha Karyakaram UPA chairperson Sonia Gandhi recently unveiled the Janani-Shishu Suraksha Karyakram — an ambitious national healthcare programme aimed at providing free child delivery and neonatal care services across the country. Inaugurated at Mandikhera village located in the relatively backward and predominantly Muslim Haryana district of Mewat, the scheme is expected to bring safe medical services to more than one crore rural and urban families every year. This scheme will give right to all pregnant women to have free delivery in government health organisations. It is here underlined that the ambitious scheme of the Centre, to be implemented under the National Rural Health Mission (NRHM), has been patterned on the Haryana Government’s scheme “Janani Suraksha Yojana”, and would cost Rs 1100 crore per month. Under the programme, expecting mothers would get care and treatment, including medicines, food and testing facilities free of cost in all government hospitals and dispensaries, she said. They would also be provided, if needed, blood and transport facility to the hospital for delivery free of cost, and the mother-child duo would be transported back home. Rehabilitation of Sex Workers The Central Government is implementing ‘Ujjawala’, a comprehensive Scheme for prevention of trafficking and rescue, rehabilitation and reintegration of victims of trafficking for commercial sexual exploitation since 4th 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 PROGRAMMES Rural Business Hubs Scheme Since the inception of the Central Sector Scheme of Rural Busi- ness Hubs (RBHs) in 2007-08, the Government has released a total of Rs. 540.45 lakh upto the period 2011-12 for the Scheme. Rs. 86.17 lakhs was released for the period 2010-11. For the period 2011-12, 13.32 lakhs has been released till date. The Ministry of Panchayati Raj has been implementing a Central Sector Scheme of RBHs for promoting manufacturing of products using raw materials / skills available in the rural areas. The scheme works on a 4P (Public-Private-Panchayat-Partnership) model and is applicable in all the BRGF districts and all the districts in the North-Eastern Region. Setting up of RBHs is primarily done through convergence of resources from various ongoing schemes. Assistance under the RBH Scheme is available for professional support services, training/skill development and for purchase of minor equipment. RBH is a demand driven scheme and, therefore, no targets can be fixed under the Scheme. There is no State-wise allocation of funds. The financial assistance is provided to the Implementing Agencies in two installments keeping in view the vi- ability of their projects and proper utilization of the funds released. December, 2007. The Minister of State (I/C) for Women & Child Development Smt. Krishna Tirath stated in Lok Sabha that the Scheme is envisaged for women and children who are vulnerable to trafficking and those who are victims of trafficking for commercial sexual exploitation. However, sex workers who are voluntarily in the trade and wish to be rehabilitated, can also avail of rehabilitation services provided under the Ujjawala Scheme. The Minister informed the House that under the Scheme, 76 Protective and Rehabilitative Homes have been sanctioned, in the country, which can accommodate upto 3800 beneficiaries. These Rehabilitative Homes are given financial support for providing the inmates basic amenities such as food, clothing and shelter, medical care, legal aid, education in case the victims are children as well as for undertaking vocational training and income generation activities to provide the victims with alternate livelihood option. Smt. Tirath said that a comprehensive study on ‘Girls and Women in Prostitution’, conducted in 2004, which was sponsored by the Ministry of Women and Child Development, had estimated that there were about 2.8 million prostitutes in the country of which 36% are children. It is to be noted here that the Hon’ble Supreme Court vide its order dated 14.2.2011 had asked the State and Central Governments to prepare schemes for rehabilitation of sex workers in all cities in India by giving them technical/vocational training. Subsequently, vide order dated 19.7.2011, the Hon’ble Court has a Panel which will make suitable suggestions to the Court on different aspects including rehabilitation of sex workers who wish to leave sex work. The Court has asked the Panel to first take up the problems of sex workers in the 4 metropolitan cities i.e. Delhi, Kolkata, Mumbai and Chennai. The Panel has met three times to discuss the issues before it.
  17. 17. Career Makers September 2011, Volume: 09 17 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 REPORTS Global Innovation Index 2011 India has continued to deteriorate in the index as it has slipped to 62nd position in the 2011 edition of the Global Innovation Index rankings from being 56th in 2010 and 41st in 2009. India has performed poorly on the Input side at ranked 87th: India is in the last quintile on sub-pillars business environment, elementary education, tertiary education, and knowledge workers. In the Innovation Efficiency Index, India however improved its ranking to 9th this year. It was followed by Sri Lanka (82), Bangladesh (97), and Pakistan (105). The 2011 rankings were by the leading international business school INSEAD and its knowledge partners, Alcatel-Lucent, Booz & Company, the Confederation of Indian Industry, and the World Intellectual Property Organisation (WIPO). Switzerland has been regarded as ranked one ahead of Sweden, Singapore, Hong Kong and Finland. The other major countries are; US (7), China (29), Brazil (47) and Russia (56). The Global Innovation Index has been computed as an average of the scores across inputs pillars (describing the enabling environment for innovation) and output pillars (measuring actual achievements in innovation). It added that five pillars constitute the Innovation Input Sub-Index: ‘Institutions,’ ‘Human capital and research,’ ‘Infrastructure’, ‘Market sophistication’ and ‘Business sophistication’. The Innovation Output Sub-Index is comprised two pillars: ‘Scientific outputs’ and ‘Creative outputs’. The Innovation Efficiency Index, calculated as the ratio of the two Sub-Indices, examines how economies leverage their enabling environments to stimulate innovation results. World Trade Report 2011 The WTO and preferential trade agreements: From co-existence to coher- ence: The ever-growing number of preferential trade agreements (PTAs) is a prominent feature of international trade. The World Trade Report 2011 describes the historical development of PTAs and the current landscape of agreements. It examines why PTAs are established, their economic effects, and the contents of the agreements themselves. Finally it considers the interaction between PTAs and the multilateral trading system. According to the latest report of the WTO accumulated trade opening — at the multilateral, regional and unilateral level — has reduced the scope for offering preferential tariffs under PTAs.As a result, only a small fraction of global merchandise trade receives preferences, and preferential tariffs are becoming less important in PTAs. The report highlights the fact that global production networks have promoted the emergence of these “deep” PTAs as good governance on a range of regulatory areas is far more important to these networks than further reductions in already low tariffs. WTO projects that the world trade will grow 6.5 per cent by volume in 2011: The latest report of the WTO has projected that the world trade will grow by 6.5 percent this year, which is above the average rate between 1990 and 2008 of 6 percent, but if fails short of last year’s dramatic rebound. The WTO maintains that the growth in merchandise trade in 2010 as measured by volume of exports was 14.5 percent, revised up from its previous forecast of 13.5 percent. UN Millennium Development Goals Report According to the UN Millennium Development Goals Report, as many as 320 million people in India and China are expected to come out of extreme poverty by 2015, while India’s poverty rate is projected to drop to 22%, from 55% in 1990. Those living on less than $1.25 a day are considered extremely poor.
  18. 18. Career Makers September 2011, Volume: 09 18 Developing country’ trade as measured by exports growth is projected to grow by 9.5 percent, while that of developed countries is set to grow only 4.5 percent. India is 10th top services exporter: According to the latest report of the WTO, India has achieved 10th rank in export of services worldwide, while emerged as the 20th biggest merchandise exporter in 2010. In value terms last year, India exported services and merchandise worth USD 110 billion and USD 216 billion respectively. India’s goods exports went up by 31 per cent in 2010, helping the country to expand its market share to 1.4 per cent from 1.2 per cent in 2009. According to the report, China ranked first in terms of merchandise exports followed by the US and Germany. In services export, the US is on the top slot followed by Germany and UK. Asian Development Bank Economic Report 2011 The Asian Development Bank (ADB) has released its economic report on Asian economies titled as ‘Asia 2050 - Realizing theAsian Century’, saying that by the year 2050, over 45 per cent of the entire world’s gross domestic product (GDP) will be contributed by sevenAsian nations. According to the report, Asia’s rise will be led by China, India, Indonesia, Japan, the Republic of Korea, Malaysia, and Thailand. In this exclusively prepared comprehensive report, the Asian Development Bank has referred to these seven countries as the driving engines for the re-emergence of the entire Asia. According to the estimates, around 3.1 billion total populations were living in these seven Asian nations in the year 2010. This population makes 78 per cent of the entire population living in Asia. In 2010, these seven countries were generating around $ 14.2 trillion gross domestic product. World Competitiveness Rankings 2011 India has slipped one rank, to 32nd position in overall competitiveness among 59 nations, according to the latest ‘World Competitiveness Rankings’, announced by the International Institute for Management Development, Lausanne (Switzerland). The recovery of financial markets pushed the US and Hong Kong to first place, followed by last year’s topper, Singapore, which fell to third spot. In 2010, the US and Hong Kong ranked second and third, respectively. India’s neighbouring competitor, China, also slipped one rank, to 19th and Japan went up one rank to 26th slot. Though India’s ranking is below the midway mark, it still did better than Indonesia (37) Philippines (41), Brazil (44) and Russia (49). Sharply different trends were observed in India’s ranking in four major parameters. UNEP Report 2011 “Investing an additional US$40 billion a year or 0.034 per cent of global Gross Domestic Product (GDP) in the forestry sector could halve deforestation rates by 2030, increase rates of tree planting by around 140 per cent by 2050, and catalyse the creation of millions of new jobs,” says a new report launched by the United Nations Environment Programme (UNEP). The report, “Forests in a Green Economy: A Synthesis”, examines the role of forests in a green economy, and provides policy recommendations to adjust the forest sector in such a way that it can effectively contribute to sustainable development and poverty eradication. The report further highlights that right kind of enabling policies, such as investment equivalent to about 2/3 more than what is spent on the sector today, could help in removing an extra 28 per cent of carbon from the atmosphere, thus playing a key role in combating climate change. The report further highlights that more than a billion people around the world depend on forests for incomes and employment. Forests are also a major source to provide nutrition and diminish energy scarcity. Besides, forests serve as carbon sinks, regulate water cycles and contribute to the world biodiversity. Thus we can convincingly say that economic progress and human well-being are dependent on healthy forests. World Investment Report 2011 The UNCTAD's World Investment Report (WIR) 2011, the FDI inflow to India has taken a nosedive. In this regard, India position has come down from eighth rank in 2009 to the 14th rank in the top-20 league for global FDI inflows
  19. 19. Career Makers September 2011, Volume: 09 19 in 2010. As per the report, India's FDI inflows in 2008 stood at $42.5 billion. This had come down to $35.6 billion in 2009 and $24.64 billion in 2010. India attracted FDI worth USD 25 billion last year, much lower than the inflows of USD 36 billion seen in 2009. Whereas United States with $228 billion has topped the list; China stood at 2nd position with inflows totalling $106 billion in 2010, and Brazil stood at 5th position with inflows at $48 billion during the last year. In fact, FDI inflows to South, East and South-East Asia rose 24 per cent to $300 billion, nearly one- fourth of the global total of $1.24 trillion in 2010. FDI to South Asia declined to $32 billion, reflecting a 31 per cent slide in inflows to India and a 14 per cent drop in flows to Pakistan. By contrast, inflows to Bangladesh, a rising low-cost production location, increased by nearly 30 per cent to $913 million. FDI inflows in India stood at $ 9.42 billion in 2010-11. UN women Report 2011 UN women has issued a new report on women’s access to justice worldwide, “Progress of the World’s Women: In Pursuit of Justice”. The report focuses on women’s access to justice in every country around the world. The report is a global survey of women’s access to justice – looking both at legislation passed by governments and the steps taken or not taken to implement those laws. The “paradox” confronted by the report is that despite the recent and rapid expansion of women’s legal entitlements, what is written in the statute books does not always translate into real progress on equality and justice on the ground. The report looks at which countries have passed special legislation on women’s political rights and economic opportunities and on women’s reproductive health and rights. It looks at which countries have laws against domestic violence, sexual harassment and marital rape. It catalogues data on development indicators related to women, and looks country-by- country at women’s participation in politics. Major Highlights of the Report: (a) 139 nations guarantee gender equality, 117 countries have equal pay laws, and 115 coun- tries guarantee women’s equal property rights. (b) Globally, 53 per cent of working women are in vulnerable em- ployment and women are paid up to 30 per cent less than men in some countries. (c) 125 countries outlaw domestic violence, but 127 countries do not explicitly criminalise rape within marriage. (d) Around the world, 603 million women live in countries where domestic violence is not consid- ered a crime and more than 2.6 billion live in countries where marital rape is not a criminal of- fence. (e) 61 countries severely restrict women’s rights to abortion. (f) 50countrieshavealowerlegalage of marriage for women than for men. 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 123456789012345678901234567890121234567890 BANKING SECTOR Marginal Standing Facility Scheme The Reserve Bank of India (RBI) has introduced a new Marginal Standing Facility (MSF) scheme, which was announced to be imple- mented in its Monetary Policy for the year 2011-12. Under the new facil- ity, banks will borrow overnight up to 1 per cent of net demand and time liabilities (NDTL) outstanding at the end of the second preceding fort- night. The MSF will be 100 basis points above the repo rate – the rate at which banks borrow from RBI. It needs to be noted that the repo rate has now become the only indepen- dent variable policy rate, marking a shift from earlier method of calibrat- ing various policy rates separately. The reverse repo rate — the rate at which RBI borrows – will be kept 100 basis points lower than the repo rate. All scheduled commercial banks that have current account and sub- sidiary general ledger (SGL) ac- count with RBI are eligible to par- ticipate in the MSF scheme. RBI will receive requests for a minimum amount of Rs 10 million and in multiples of Rs 10 million thereafter. The central bank has the right to accept or reject partially or fully, the request for funds under this facility. Marginal Standing Facility will curb inter-bank lend- ing volatility: The Reserve Bank of India’s new Marginal Standing Facility is expected to curb volatility in the overnight lending rates in the banking system. The banks will use Marginal Standing Facility to borrow overnight money only when they have exhausted all other existing
  20. 20. Career Makers September 2011, Volume: 09 20 channels like collateralized borrowing and lending obligation (CBLO) and liquidity adjustment facility (LAF). Difference between Liquidity Adjustment Facility-Repo Rate and Marginal Standing Facility Rate: Banks can borrow from the RBI under LAF-Repo Rate, which stands at 7.25 per cent by pledging government securities over and above the statutory liquidity require- ment of 24 per cent. Though in case of borrowing from the marginal standing facility, banks can borrow funds up to one per cent of their net demand and time liabilities at 8.25 per cent. However, it can be within the statutory liquidity ratio of 24 per cent. Merger of SBI Commercial with SBI The Union Cabinet has approved acquisition of the State Bank of India Commercial and International Bank Ltd. (SBICI Bank Ltd.) by State Bank of India (SBI), in terms of sub-section (2) of section 35 of the State Bank of India Act, 1955. SBICI, with two branches in Mumbai, is a wholly owned subsidiary of State Bank of India (SBI) and functions as a private sector bank offering an array of financial products and services. The terms and conditions for the acquisition have been approved by board of directors of both the banks and also by the Reserve Bank of India. It is hoped that the merger would help in eliminating the cost involved in maintaining the administrative structure of SBICI as both the branches of SBICI would be easily absorbed in the operations of the main bank. Significance of the merger by the government: In the overall analysis, continuation of SBICI in its present form would not create a sustainable organization with a separate niche, able to hold on its own in the medium term. As an independent Bank also, SBICI has had to maintain a full-fledged, elaborate administrative setup to conform to regulatory requirements. The cost of maintaining such a structure is disproportionate to the level of operations of the SBICI. The proposed merger would help in eliminating the cost involved in maintaining the administrative structure of SBICI as both the branches of SBICI would be easily absorbed in the operations of the main Bank. While no present beneficiary of the State Bank of India would be affected, the number of beneficiaries would be the clients of SBI Commercial and International Bank Ltd. who will have access to the bigger network of State Bank of India. SBICI: SBICI Bank Ltd. is a wholly owned subsidiary of SBI, which was set up in 1994 after taking over the Indian operations of the erstwhile Bank of Credit and Commerce International Ltd. (BCCI), which went into liquidation in 1991. SBICI Bank Ltd. has only two branches, both in Mumbai. Self-Help Groups The RBI has allowed urban cooperative banks (UCBs) to give loans to selfhelp groups (SHGs). This decision by the RBI is definitely going to promote financial inclusion in the nation in addition to expand the scope of UCBs. If the reach of the UCBs is expanded, it will result in promoting financial inclusion. According to the latest guidelines of the RBI, lending to SHGs and JLGs (Joint Liability Groups) would be considered as normal business activity of the bank. UCBs will be required to frame a comprehensive policy on lending to SHGs and JLGs. The maximum amount of loan to SHGs should not exceed four times of the savings of the group. With regard to loans given to JLGs, the guidelines stated that the JLGs were not obliged to keep deposits with the bank and hence the amount of loan granted to them would be based on their credit needs and the bank’s assessment of the credit requirement. Definition of Self-Help Group: A Self-Help Group is a small voluntary association of poor people preferably from the same socio- economic back drop. The micro- credit given to them makes hem enterprising; it can be all women group, all-men group or even a mixed group. However, it has been the experience that women’s groups perform better in all the important activities of SHGs. In other words we can define the SHGs as a group of micro entrepreneurs with homogeneous social and economic background who voluntarily come together to save small amounts regularly and mutually agree to contribute to a common fund to meet their emergency needs. Defining Joint Liability Groups: A Joint Liability Group (JLG) is an informal group comprising preferably of 4 to 10 individuals coming together for the purposes of availing bank loan either singly or through the group mechanism against mutual guarantee. The JLG
  21. 21. Career Makers September 2011, Volume: 09 21 members are expected to engage in similar type of economic activities. The management of the JLG is to be kept simple with little or no financial administration within the group. JLGs can be formed primarily consisting of tenant farmers and small farmers cultivating land without possessing proper title of their land. Foreign Currency Convertible Bonds Foreign Currency Convertible Bonds are debt instruments issued in a currency different than the issuer’s domestic currency with an option to convert them in common shares of the issuer company. It’s a quasi-debt instrument to raise foreign currency funds at attractive rate. FCCB acts like a bond by making regular coupon and principal payments; and also gives the bondholder an option to convert the bond into stock. In other words we can say that, Foreign currency convertible bond (FCCB) is a convertible bond issued by a country in a currency different than its own currency. This is the powerful instrument by which the country raises the money in the form of a foreign currency. The bond acts like both a debt and equity instrument. Like bonds it makes regular coupon and principal payments, but these bonds also give the bondholder the option to convert the bond into stock. Guidelines for issuing FCCBs in India: (a) Any company that requires to raise the foreign funds by issuing FCCB, require prior permission of the Department of Economic Affairs, Ministry of Finance, Government of India. (b) The company issuing the FCCB should have the consistent track record for a minimum period of three years. (c) The Foreign Currency Convertible Bonds shall be denominated in any freely convertible foreign currency and the ordinary shares of an issuing company shall be denominated in Indian rupees. (d) The issuing company should deliver the ordinary shares or bonds to a Domestic Custodian Bank as per regulation. The custodian bank on the other hand instructs the Overseas Depositary Bank to issue Global Depositary Receipt or Certificate to non-resident investors against the shares or bonds held by the Domestic Custodian Bank. Advantages of FCCBs: (a) It is more stable and predictable than domestic currency. (b) It gives issuers the ability to access investment capital available in foreign markets. (c) Companies can use the process to break into foreign markets. (d) The bond acts like both a debt and equity instrument. Like bonds it makes regular coupon and principal payments, but these bonds also give the bondholder the option to convert the bond into stock. (e) It is a low cost debt as the interest rates given to FCC Bonds are normally 30-50 percent lower than the market rate because of its equity component. (f) Conversion of bonds into stocks takes place at a premium price to market price. Conversion price is fixed when the bond is issued. So, lower dilution of the company stocks. Some of the perceived disadvantages of FCCBs: (a) The exchange risk is more in FCCBs as interest on bond would be payable in foreign currency. Thus companies with low debt equity ratios, large forex earnings potential only opted for FCCBs. (b) FCCBs mean creation of more debt and a forex outgo in terms of interest which is in foreign exchange. (c) In case of convertible bond the interest rate is low (around 3-4 per cent) but there is exchange risk on interest as well as principal if the bonds are not converted in to equity. (d) If the stock price plummets, investors will not go for conversion but redemption. So, companies have to refinance to fulfill the redemption promise which can hit earnings. (e) It remains as debt in the balance sheet until conversion. FCRA The central government notified the Foreign Contribution Regulation Act, 2010 and it came into force from May, 1, 2011. Salient Features of the Act: (a) Any association granted prior permission or registered with the Central Government under Section 6 or under the repealed FCRA, 1976, shall be deemed to have been granted prior permission or registered, as the case may be, under FCRA, 2010 and such registration shall be valid for a period of five years from the date on which the new Act has come into force. (b) While the provisions of the repealed FCRA, 1976 have generally been retained, the FCRA, 2010 is an improvement over the repealed Act as more stringent provisions have been made in order to prevent misutilisation of the foreign contribution received by the associations. (c) Any organization of a political nature and any association or
  22. 22. Career Makers September 2011, Volume: 09 22 company engaged in the production and broadcast of audio or audio visual news or current affairs programme have been placed in the category prohibited to accept foreign contribution. (d) A new provision has been introduced to the effect that no person who receives foreign contribution as per provisions of this Act, shall transfer to other person unless that person is also authorized to receive foreign contribution as per rules made by the Central Government. (e) Another new provision has been made to the effect that foreign contribution shall be utilized for the purpose for which it has been received and such contribution can be used for administrative expenses up to 50 per cent of such contribution received in a financial year. (f) No funds other than foreign contribution shall be deposited in the FC account to be separately maintained by the associations etc. Every bank shall report to such authority, as may be prescribed, the amount of foreign remittance received, sources and manner and other particulars. (g) Provision has been made for inspection of accounts if the registered person or person to whom prior permission has been granted fails to furnish or the intimation given is not in accordance with law. (h) Any person contravening the provisions of the Act shall be punishable with imprisonment for a term which may extend to five years or with fine or with both. Credit Default Swap CDS are a financial instrument for swapping the risk of debt default. Credit default swaps may be used for emerging market bonds, mortgage backed securities, corporate bonds and local government bond. The buyer of a credit default swap pays a premium for effectively insuring against a debt default. He receives a lump sum payment if the debt instrument is defaulted. The seller of a credit default swap receives monthly payments from the buyer. If the debt instrument defaults they have to pay the agreed amount to the buyer of the credit default swap. Process: A CDS contract involves the transfer of the credit risk of municipal bonds, emerging market bonds, mortgage- backed securities, or corporate debt between two parties. It is similar to insurance because it provides the buyer of the contract, who often owns the underlying credit, with protection against default, a credit rating downgrade, or another negative “credit event.” The seller of the contract assumes the credit risk that the buyer does not wish to shoulder in exchange for a periodic protection fee similar to an insurance premium, and is obligated to pay only if a negative credit event occurs. It is important to note that the CDS contract is not actually tied to a bond, but instead references it. For this reason, the bond involved in the transaction is called the “reference obligation.” A contract can reference a single credit, or multiple credits. CDS have the following two uses: (a) Hedging: A CDS contract can be used as a hedge or insurance policy against the default of a bond or loan. An individual or company that is exposed to a lot of credit risk can shift some of that risk by buying protection in a CDS contract. This may be preferable to selling the security outright if the investor wants to reduce exposure and not eliminate it, avoid taking a tax hit, or just eliminate exposure for a certain period of time. (b) Speculation: The second use is for speculators to “place their bets” about the credit quality of a particular reference entity. With the value of the CDS market, larger than the bonds and loans that the contracts reference, it is obvious that speculation has grown to be the most common function for a CDS contract. CDS provide a very efficient way to take a view on the credit of reference entity.An investor with a positive view on the credit quality of a company can sell protection and collect the payments that go along with it rather than spend a lot of money to load up on the company’s bonds. An investor with a negative view of the company’s credit can buy protection for a relatively small periodic fee and receive a big payoff if the company defaults on its bonds or has some other credit event. A CDS can also serve as a way to access maturity exposures that would otherwise be unavailable, access credit risk when the supply of bonds is limited, or invest in foreign credits without currency risk. Infrastructure Debt Funds Infrastructure Debt Funds is a debt instrument being set up by the finance ministry in order to channelize long term funds into infrastructure projects which require long term stable capital investment. According to the structure laid out by the finance ministry, after consultations with stakeholders, infrastructure NBGCs, market regulators and banks, an IDF could either be set up as a trust or as a company. IDFs in India: The government of India has unveiled the structure of infrastructure debt
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