05.02.2007

• BCTT may go
• The Finance Minister may withdraw the BCTT (Banking Cash Transaction Tax) which is presently charged at 0.01% of the cash withdrawal from bank accounts.
• This move follows the stiff opposition the state governments have put up for the continuation of the levy.
• It is applicable on individuals and HUFs withdrawing more than Rs. 25,000 on a single day. Corporates are also subject the levy if they withdraw more than Rs. 1,00,000 within a day.
• The government collected Rs. 404 crores till January 31, 2006.
• BCTT was introduced in the Budget 2005-06 with the aim of setting an audit trail and to prevent money laundering using banking channels.
• Cauvery water dispute
• This is an inter-state water dispute between Karnataka and Tamilnadu.
• In 1990 a tribunal was constituted to look into the dispute and give a verdict. After almost 17 years now, the tribunal is expected to release its verdict today.
• When its interim award was announced in 1991, the violence that followed led to loss of 16 lives in Bangalore alone and property worth several crores was damaged.
• Cauvery is the fourth largest river in south India after Godavari, Krishna and Mahanadi. It originates at Talacauveri in Kodagu, Karnataka at about 1341 meters above sea level. It travels through the southern Karnataka districts before entering Tamilnadu’s Thanjavur tracts before joining the Bay of Bengal.
• About Aero India air show
• Its larger global counterparts are the shows at Farnborough, Le Bourget and Dubai.
• Aero India is a biennial event and has evolved into a meeting ground for buyers and sellers in defence and civil aviation in south Asia.
• Bologna process
• It aims to streamline the educational systems within Europe and bring them at par with each other.
• Mani Bhaumik and LASIK
• Dr. Mani Bhaumik achieved international fame as the co-inventor of the laser technology that make LASIK vision correction possible.
• Laser-Assisted in Situ Keratomileusis, is a form of refractive laser eye surgery procedure performed by ophthalmologists intended for correcting myopia, hyperopia, and astigmatism. The procedure is usually a preferred alternative to photorefractive keratectomy, PRK, as it requires less time for full recovery, and the patient experiences less pain overall. Many patients choose LASIK as an alternative to wearing corrective glasses or contact lenses.
• Group on farm revival
• The Planning Commission has set up a group with C.H. Hanumantha Rao as its head to come out with a clear cut policy regime for kick-starting the revival plan for the agriculture sector.
• More FDI into capital goods sector
• The ministries of commerce and heavy industries are in talks to allow 49% FDI for textile machinery, leather equipment, automated machines in the construction sector, mining and computer numerical control (CNC) machines.
• At present about 40% of the country’s demand for capital goods was met through imports.
• Leather Export Parishad
• Chairman: Mukhtarul Amin
• SPV for affordable housing
• The government is planning to float a special purpose vehicle – the National Shelter Fund. This will be done in association with FIIs and PE firms to provide affordable housing in the country.
• The government would raise its contribution through a 1% cess on stamp duty collection. This would be possible because, following the centre’s goading, many states have reduced the stamp duties from a high of 14% to about 5% in recent times. This has resulted in lot of revenue buoyancy for the states.
• About Milk availability in India
• The per capita availability of milk in India is lower than the world average of nearly 300 gm/day. It was 232 gm/day in 2004-05.
• Although India is the largest producer of milk, the average yield/animal/year is less than half the world average and nearly one-tenth that of the high-yield countries such as Israel.
• Less than 15% of the total milk production comes from the organized cooperative dairy sector.
• RBI identified factors contributing to inflation
• Prices of primary food articles are firm and have not exhibited the usual seasonal decline.
• Prices of manufactured products have also shown an increase.
• Business surveys suggest that capacity utilization in the manufacturing sector has risen.
• There are indications of demand pressure building up for manufactured goods.
• There is a sizeable and worrisome expansion in bank credit.
• Asset prices have increased beyond even the elevated levels at the time of the mid-term review.
• INS Jalashwa
• Is the first major ship purchase made by India from the US. It was purchased last year.
• NTT
• National Tax Tribunal. An Act was passed in 2005 constituting this tribunal. But the tribunal could not be formed in view litigation. Once established, the NTT will be capable of disposing the tax appeals in six months to one year. At present, the High Courts are taking 7 to 15 years to decide a tax matter.