Indian Current Affairs: 20.01.2007

RBI is considering a new proposal which aims to allow firms to lend 200% of their net worth to overseas’ ‘step-down subsidiaries’ to fund acquisitions.
Step-down subsidiaries are ventures promoted by the holding company of the Indian corporate group.
At present Indian firms are allowed to remit funds for overseas acquisitions to a direct subsidiary but not to a group subsidiary where it holds no shares. The proposed changes will enable the step-down subsidiaries to leverage the balance sheet of both the Indian corporates as well as the parent holding company that has floated the step-down arm.

Inflation rises to 6.12% for the first week of January 2007, driven largely by supply side constraints.
Fire arm found in Nusli Wadia’s bag at Dubai airport

He was found carrying a licensed firearm; reportedly by oversight, as his domestic help packed it in his baggage without his knowledge. Nusli Wadia is the Chairman of Bombay Dyeing.
As per rules, a person cannot carry a licensed firearm out of India. The purview of the arms license stops within the boundaries of the country. Even on domestic flights, if a weapon has to be carried by a passenger, he has to pack it in his registered baggage. He is also required to fill up a form declaring the firearm and satisfy the airline regarding the validity of the license.

Takers for 3G cellular technology may be few with WiMAX being a more cost effective alternative.

Using the USOF (Universal Service Obligation Fund), the DoT (Department of Telecom) is setting up about 8000 telecom towers across the country at an estimated cost of Rs. 4,000 crores.
This project will cover about 212,000 villages where both fixed line and mobile services are not provided currently.

Air India is launching its first freighter service with two A310 aircraft in June-July this year.
Indian is also looking at entering this segment during this year.

The government will consider imposition of sectoral caps on SEZs once 100 SEZs are notified. As of now government has notified 63 SEZs.

Why should developing or least developed countries prefer multilateral trading pacts over bilateral or regional trading pacts?

In bilateral and regional trading agreements, the bargaining powers of these countries is often less than the other party. Hence the outcomes are bound to be skewed.
In a multilateral trading pact, where the principle of one-country one-vote is followed, like in the WTO, the strengths of all parties is going to be equal. Hence the outcomes cannot be as disastrous as in the other type of agreements.

Punjab and Haryana have 90% and 71% of their arable land irrigated. Maharashtra has 85% irrigated.

In the current frenzy of cross-border M&A activity seen in the Indian business scene, increasingly international bankers are found willing to lend to Indian business houses non-recourse debt.
What this means is the borrower is not personally liable.

At the ripe age of 87, he has gone to the Antarctic for ‘one last time’, as he put it.
He accompanied New Zealand Prime Minister Helen Clark and other dignitaries who flew to Antarctica to mark the 50^th anniversary of the Scott Base, which the adventurer helped build in 1957.

It has banned the commercial hunting of whales in 1986.
Japan and a few other countries are seeking a lifting of this ban. But unless 75% of the Commission members agree, the lifting of the ban is not possible.

The government is thinking of coming out with an ordinance empowering the RBI to fix SLR at even below the 25% floor that is currently existing.
Before convening a session of Parliament, the President issues summons at least 21 days before the session is expected to commence. After summoning the Parliament session, President cannot sign an ordinance. The government has to introduce a bill rather than choose the ordinance route.

Indian Current Affairs