Indian Current Affairs: 07.04.2010

Politics & the Nation

Take a look at this sad story.
An editorial comment that is very well reasoned in this context:
In fact, a frenzied state response is clearly what the Maoists want. Operation Green Hunt has not produced enough violence against ordinary tribal people so far, but still has got the Maoists on the run. This does not suit the Maoists. They claim that Green Hunt is nothing short of the Indian state’s war against its own people. The only way to prove that is to get the state to launch a massive assault that does not distinguish between Maoists and tribal people. The cold-blooded massacre of 80-odd policemen is transparently an attempt to provoke brutal reprisal. The blood they spill of ordinary policemen as talisman of their revolutionary earnestness, and the blood they hope would inundate the jungles of central India as the state mows down entire villages in retaliation, as proof of the need for such revolution — thus runs Maoist logic.
This logic must be defeated, firmly and resolutely, to win the war against Maoism. For that, restraint and logic must temper and guide the force that is used to respond to the latest outrage

Finance & Economy

The Comptroller and Auditor General (CAG) has accused telecom minister A Raja of causing a loss of over Rs 26,000 crore to the government by disregarding the advice of many experts and persisting with a faulty and outdated policy for issuing new telecom licences.
Raja, who has survived several calls for his removal over charges of corruption, ‘single-handedly’ decided to continue with the policy that cost the government Rs 26,685 crore in revenue, CAG has said in its annual report.
CAG’s audit of DoT relates to the issue of new pan-India licences in 2008 at Rs 1,651 crore, a price fixed in 2001 when mobile subscriber base was 45 million and industry valuations were poor. Nine companies were issued licences in a process that was controversial from the very beginning.
DoT advanced the cut-off date suddenly and then incorporated a first-come, first-served clause which some of the bidders got to know of in advance.
Some months later, Swan Telecom and Unitech, two of the winners, sold a large stake in their operations to overseas companies at stupendous valuations.

The UPA government’s flagship job guarantee scheme is all set to target sophisticated and skills-intensive projects, such as watershed development and farm productivity enhancement schemes. The revamped national rural employment guarantee scheme (NREGS) will thus seek to create higher value assets and also impart newer skills to the beneficiaries.
The idea behind the revamped NREGS is that dependence on it should go down over time. Where durable assets are created, water conservation happens, agriculture productivity is raised and all this is dovetailed with micro-finance, then migration from outside the area is reduced and people go back to farming or other livelihood created by NREGS.
A laudable objective indeed.
It is estimated that in 2009-10, nearly 5 crore families would be provided around 300 crore person-days of work under the programme. In four years, the programme has provided nearly 600 crore person-days of work at a total expenditure of around Rs 70,000 crore.

Investors pushed Indian shares and the rupee to multi-month highs expecting a sustained earnings and economic growth, but the sharp gains have also triggered fears of policy brakes to prevent overheating of the economy.
Stocks rose to a 25-month high on Monday, tailing a global rally across asset classes after the best US jobs data in three years. The rupee rose to a 19-month high against the US dollar as global investors poured in funds to buy Indian assets.
The optimism has led to price increases, including in steel and auto, which are threatening to lead to an inflationary spiral that could force faster interest rate hikes.

At a little less than half the size of the world’s largest health bill, US pharmaceutical sales are estimated at $315 billion. Almost 40% of the drugs and 80% of medicinal active ingredients consumed in the US are imported.
That's why Indian pharma companies go after the USFDA approval for their manufacturing facilities. Because unless their manufacturing facilities are USFDA approved, products made in those facilities cannot be exported to the US market.
India has the largest number of USFDA approved plants outside the US — estimated at 175 now, from around a 100 in early 2007.
Any alteration to the current systems to meet USFDA’s specifications can cost drug companies up to $50 m. The cost of an additional trial, if mandated by the US drug regulator, is pegged at over $50 million.

On the new regulatory landscape that is causing lot of consternation among the big retailers

New rules on foreign direct investment in wholesale trade have caused consternation among Indian business houses with big plans for retail such as Sunil Mittal’s Bharti and the Tatas and their partners, global giants like Wal-Mart and Tesco. The guidelines have also disrupted plans by India’s largest retailer Kishore Biyani to team up with French company Carrefour for a foray into wholesale trading, also known as cash & carry.
So, what exactly are the new rules?
The new rules, issued by the industry ministry on March 31, say sales to ‘group companies’ should not exceed 25% of a cash & carry company’s turnover and should only be for ‘internal use’.
But the main irritant is the 25% cap on sales to group companies because some agreements had been structured so that cash & carry companies owned by foreign investors sell the bulk of their goods to Indian owned retailers selling to consumers.
India allows foreigners to own 100% in companies carrying out wholesale trade but prohibits FDI in retailers selling to consumers. Foreign-owned wholesale traders can sell to shops and restaurants or other retailers but not to individual buyers.

Separate Trading of Registered Interest and Principal of Securities
Take a look at this ET in the Classroom column that gives a lowdown on the concept.

This is yet anotherET in the Classroom columnthat gives us some gyan on these entities. Take a look.

Language Lessons

Utterly astounded
eg: The unique interpretation of the words left most people gobsmacked, scurrying for dictionaries.

Plausible glib talk (especially useful to a salesperson);
Verb: Replay (as a melody); Speak at great length (about something)
eg: Our superpower spiel sounds so hollow when our elite forces are blown to bits and Chinese hackers snoop on our defence secrets.

A clandestine rescue operation to bring a defector or refugee or an operative and family out of danger

A privately owned warship commissioned to prey on the commercial shipping or warships of an enemy nation

Indian Current Affairs