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Home » Current Affairs » Current Affairs of June 2010

Current Affairs of June 2010


Compulsory public float rule issued

On June 5, 2010, the Union government made it mandatory for all listed companies to have a minimum public float of 25 per cent. Those below this level will have to get there by an annual addition of at least 5 per cent to public holding.

The move is expected to result in equity dilution of about Rs 1,60,000 crore by 179 listed companies. These include Reliance Power, Wipro, Indian Oil Corporation, DLF and Tata Communications.

According to the notification, ‘public’ will not include the promoter, promoter group, subsidiaries and associates of a company. ‘Public shareholding’ will mean equity shares of the company held by the public and not the shares held by the custodian against depository receipts issued overseas.

A company can increase its public shareholding by less than 5 per cent in a year if such increase brings its public shareholding to the level of 25 per cent in that year. If the public shareholding in a listed company falls below 25 per cent at any time, the company will have to bring the public shareholding to 25 per cent within 12 months from the date of such fall, compared with the two years allowed at present.


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Bhopal Gas Tragedy verdict

On June 7, 2010, nearly 26 years after the world's worst industrial disaster left more than 15,000 dead in the Bhopal gas tragedy, former Union Carbide India Chairman Keshub Mahindra and seven others were convicted and sentenced to two years imprisonment.

Chief Judicial Magistrate Mohan P. Tiwari held the 85-year-old non-executive chairman of the Indian subsidiary of the US-based company and gave them punishment under less stringent provisions of the Indian Penal Code for causing death by negligence.

The 89-year-old Warren Anderson, the then Chairman of Union Carbide Corporation of USA, who lives in the United States, appeares to have gone scot free for the present as he is still an absconder and did not subject himself to trial. There was no word about him in the judgement.

The US based company reacted to the judgement saying neither it nor its officials were subject to the jurisdiction of the Indian court since they were not involved in the operation of the plant, which was owned and operated by Union Carbide India Limited.

In his 93-page verdict, Tiwari said the accused were not sentenced under section 304 IPC (culpable homicide not amounting to murder that provides a maximum of life imprisonment) since they were old age and were suffering from serious ailments including heart disease.

All the convicts applied for bail immediately after the sentencing and were granted relief on a surety of Rs 25,000 each.

Law Minister M. Veerappa Moily described the verdict as an example of “justice buried” and said there was need for fast-tracking such cases and ensuring proper investigation.

The BJP termed the order as “painful” and said the prosecution should appeal against the lower punishment. It also utilised the opportunity to reconsider the provisions of the nuclear liability Bill.


ONGC, OIL get freedom to price natural gas

In a significant development, the Union government has given national oil companies, Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL), freedom to price any additional natural gas produced from blocks given to them on nomination basis at market rates. So far, all gas—current and future—produced from blocks given to ONGC and OIL was priced at government-controlled rates, called administered price mechanism (APM).

Even the price of APM gas from June 1 has been more than doubled to $4.2 per million British thermal units, on a par with the rate at which Reliance Industries sells gas from its eastern offshore KG-D6 fields.

The government has also made a significant departure from the previous practice of pricing natural gas in rupees and has now decided to price it in US dollars.

State-run ONGC and OIL produce 54.32 million cubic metres of gas per day — about 40 per cent of the total amount originating from the country — through fields given to them on a nomination basis.


Petrol, Diesel prices freed from government control

On June 25, 2010, the Union government announced that prices of petrol and diesel would become market-driven, in line with the recommendations of a panel headed by former Planning Commission member Kirit Parikh.

An empowered group of ministers led by Finance Minister Pranab Mukherjee agreed to raise diesel prices by Rs 2 a litre for now. The fuel will eventually be freed from State control. Petrol has been freed fully.

The panel also increased prices of liquefied petroleum gas (LPG) by Rs 35 a cylinder and of kerosene by Rs 3 a litre, though both will remain under government control.

The decision will help to cut fuel subsidies and limit losses of State-run refiners.

The market-driven mechanism would mean users would have to pay more whenever international crude oil prices rise and less when they fall.

The move would bring down the government’s huge subsidy bill and relieve State-owned oil marketing companies of some of the burden they bear by selling fuels much below the market prices. This burden, also called under-recovery, is estimated at Rs 215 crore every day.


Jharkhand again under President’s rule

On June 1, 2001, Jharkhand came under Central rule with President Pratibha Patil accepting a recommendation of the Union Cabinet after the Congress and the BJP gave up efforts to form an alternative government following resignation of Chief Minister Shibu Soren.

The State Assembly will be kept in suspended animation during the President’s rule, which has been imposed for a second time in two years.

The Soren government was reduced to a minority on May 24 when the BJP, with 18 MLAs and the JD(U) with two, withdrew support to it. The JMM, with 18 MLAs and having the support of seven other legislators, was short of the required 42 in the 82-member House. The BJP took the decision after Soren voted against the cut motions sponsored by the opposition in Lok Sabha on April 27.

Jharkhand has seen seven CMs since its creation on November 15, 2000, came under President’s rule for the first time on January 19, 2009.


India, Canada sign civil nuclear pact

On June 28, 2001, India and Canada signed a civil nuclear cooperation agreement. The pact was signed during Prime Minister Manmohan Singh’s visit to Canada.

The deal, the ninth signed by New Delhi, significantly alters Canada’s stance towards India. The North American nation had led the world in pushing for nuclear isolation after the 1974 tests in Pokhran.

The US, France, Russia, Mongolia, Kazakhstan, Argentina, Namibia and Britain are the eight countries that have already signed similar pacts with India.

Among other things, the India-Canada Agreement for Cooperation in Peaceful Uses of Nuclear Energy provides for tie-ups in design, construction, maintenance, supply of uranium and waste management. The two countries can also promote cooperation in the development and use of applications related to health, industry, environment and agriculture.


Visit of South African President

On his maiden visit to an Asian country as the President of South Africa, Jacob Zuma was given a rousing reception by the Indian leadership on June 4, 2010, as the two countries signed three key pacts, including one on air services, and agreed to support each other’s candidature for the non-permanent seat at the UN Security Council for the 2011-2012 term.

A wide range of bilateral issues as well as global developments, including reforms of the UN Security Council, closer cooperation between the two countries at various international fora, particularly on climate change, and increasing the volume of bilateral trade, came for discussions during the talks.
Apart from the pact on enhancing air connectivity, the two countries signed an MoU on agriculture cooperation and another for linkages between the Foreign Service Institute of India and the Diplomatic Academy of South Africa.

Both India and South Africa are keen to increase the two-way trade, which currently stands at $7.5 billion annually. Zuma said he wanted that to grow to $10 billion by 2012.


Visit of Sri Lankan President

Sri Lankan President Mahinda Rajapaksa visited New Delhi on June 9, 2010. During his talks with Prime Minister Manmohan Singh, he sought to cool down tempers in India over the plight of Tamils in his island nation by promising to quickly resettle displaced Tamils and expedite a political solution to the ethnic issue.

The two countries also signed seven agreements, including a treaty on mutual legal assistance in criminal matters and an MOU on sentenced prisoners, after wide-ranging talks.

The two countries announced a major initiative to undertake a programme of construction of 50,000 houses for internally displaced persons (IDPs) in Northern and Eastern provinces of Sri Lanka with India’s assistance. India would also be taking up several projects for the reconstruction of the North and the East, including rebuilding of railway infrastructure, rehabilitation of Kankesanthurai harbour and Palaly Airport, construction of a cultural centre in Jaffna and several vocational training centres, renovation of the Duraiappaj stadium and rehabilitation of war widows.

The two countries also decided to resume the ferry services between Colombo and Tuticoran and between Thalaimannar and Rameswaram. India would also establish consulates general in Jaffna and Hambantota. India would also assist the island country in setting up a thermal power plant at Trincomalee.

At their one-on-one meeting which was followed by delegation-level talks, the Indian PM and the Sri Lankan President also discussed a wide range of bilateral issues, including the proposed comprehensive economic partnership agreement (CEPA), as well as international issues. Sri Lanka supported India’s case for inclusion in an expanded UN Security Council, as well as its candidature for a non-permanent seat for the 2011-2012 term.

The five other agreements, signed after the talks between the two sides, were: renewal of MoU on SDP schemes, MoU on setting up of a women’s trade facilitation centre and community learning centre, renewal of cultural exchange programme, MoU on interconnection of electricity grids and MoU on Talaimannar-Madhu railway line.


Indo-US strategic dialogue

The Strategic Dialogue between India and US is another “milestone” in bilateral relationship with the Obama Administration. External Affairs Minister S.M. Krishna and US Secretary of State Hillary Clinton co-chaired the first Cabinet-level Indo-US Strategic Dialogue, which helped to set the pace for the long-term strategic relationship between the two countries.


Police strength in India

The total number of sanctioned posts as on March 31, 2010, in all ranks, is about 21 lakhs. Of these, about 3,35,000 posts are vacant. Thus, the police: population ratio for the whole country is about 160 per 100,000 persons. This ratio, much lower than the international norm, conceals more than it reveals. It is an average. In a State like Bihar the number is about 75; in UP it is about 115; in Andhra Pradesh it is about 125; in Orissa it is about 135; in Chhattisgarh and Jharkhand, two States most affected by Left Wing Extremism,the number is about 205.


Indira Gandhi Paryavaran Puraskar

In reverential memory of late Prime Minister Smt. Indira Gandhi, the Ministry of Environment and Forests, in the year 1987, instituted an award called “Indira Gandhi Paryavaran Puraskar “ to give recognition to those having made or have the potential to make the measurable and major impact in the protection of environment.

Any citizen of India or organization working in India for the cause of environment is eligible for the award.

Isha Foundation, founded by Sadhguru J Vasudev, is getting the Indira Gandhi Pariavaran Puraskar for the year 2008 in recognition of Isha Foundation’s massive ecological initiative, called ‘Project Green Hands’ to prevent and reverse environmental degradation and to enable sustainable living.

Project Green Hands is a massive people’s movement to raise the green cover of Tamil Nadu by 10%. In the last 5 years, over 300,000 Isha volunteers across Tamil Nadu and Pondicherry have raised 8.2 million trees for plantation. The goal is to mobilize the entire population of Tamil Nadu to plant an additional 106 million trees within the next 10 years.


International Congress of Mathematicians (ICM) at Hyderabad

India will host the International Congress of Mathematicians (ICM) at Hyderabad from August 19 – 27, 2010. This is the first time in more than hundred years of history of the ICMs that the Congress will be held in India and only the third time in an Asian country (the 1990 Congress was held in Kyoto and the 2002 Congress in Beijing).

The Awards given out at the ICM are one of the most attractive features of the Congress from the point of view of the public at large. The Fields Medal, the Nevanlinna Prize and the Gauss Prize are given out at these ICMs.

At Hyderabad, a new prize called the Chern Prize, named after S S Chern, a well known figure in geometry in the twentieth century, will also be awarded for thefirst time to an individual whose lifelong outstanding achievements in mathematics warrant the highest level of recognition. A onetime ‘Lilavati’ Award, named after the daughter of legendary astronomer and mathematician Bhaskaracharya, will also be given to anindividual recognised for contributions towards popularization of mathematics. The Fields Medal is considered by the mathematical community as an equivalent of the Nobel Prize.

The medals are awarded, once in four years at the inaugural function of the Congresses. The prize is administered by an international organization – the International Mathematical Union (IMU).


SDR to be used for SME loans

  • The Cabinet Committee on Economic Affairs  approved the proposal for making a budget provision of Special Drawing Rights (SDR) equivalent of USD 100 million (approx. Rs.450 crore) of International Development Association (IDA) loan for on-lending to Small Industries Development Bank of India (SIDBI) through the budget of Department of Financial Services, Ministry of Finance.

  • The fund will be used to promote responsible and balanced growth of microfinance outreach, particularly in the under served areas where microfinance penetration is low, thereby serving the larger objective of promoting financial inclusion.

  • The growth in the microfinance sector has been very high in the last few years with some of the Micro Finance Institutions registering 100% year on year growth.


Global Campaign on Making Cities Resilient

The Global Campaign on Making Cities Resilient was launched here today with the call to make South Asian cities ready to face challenges of urban risk management with effective governance and urban planning.

The campaign will be run with the close coordination of United Nation and Governments of the region and urban local bodies of the major cities.

Under the campaign all the agencies will work towards disaster reduction, planning and raise awareness and commitment for sustainable development practices.

The campaign will convince city leaders and local Governments to commit a checklist- of ten essentials for making cities resilient and to work alongside local activist, grass root networks and national authorities.

Ministry of Urban Development and National Institute of Disaster Management will jointly coordinate the campaign in the country.


List of Biosphere Reserves in India

Sixteen Biosphere Reserves have been designated in the country. They are :

  • Nilgiri (Tamil Nadu, Kerala and Karnataka),

  • Nanda Devi (Uttrakhand),

  • Nokrek (Meghalaya),

  • Manas and Dibru-Saikhowa (Assam),

  • Sundarban (West Bengal),

  • Gulf of Mannar (Tamil Nadu),

  • Great Nicobar (Andaman & Nicobar Islands),

  • Similipal (Orissa),

  • Dehang-Debang (Arunachal Pradesh),

  • Khangchendzonga (Sikkim),

  • Pachmarhi (Madhya Pradesh),

  • Achanakmar-Amarkantak (Chattisgarh and Madhya Pradesh),

  • Agasthyamalai (Tamil Nadu and Kerala),

  • Katchchh (Gujarat) and Cold Desert (Himachal Pradesh).

The primary criteria for selection of sites for Biosphere Reserves as laid down in the Guidelines issued by the Government are ,a site that must contain an effectively protected and minimally disturbed core area of value of nature conservation and should include additional land and water suitable for research and demonstration of sustainable methods of research and management and the core area should be typical of a biogeographical unit and large enough to sustain viable populations representing all trophic levels in the ecosystem.

The secondary criteria are areas having rare and endangered species, areas having diversity of soil and micro-climatic conditions and indigenous varieties of biota and areas potential for preservation of traditional tribal or rural modes of living for harmonious use of environment.


Young Environmentalist of the Year Award (YEYA)

Young Environmentalist of the Year Award (YEYA) is an national level award given by National Museum of Natural Museum (NMNH) (Ministry of Environment and Forests) every year to the best-performing teenager in the of age group of 13 – 16 years on the occasion of its Foundation Day on 5th June, coinciding with World Environment Day.

The aim of the award is to create awareness among teenagers to observe and understand nature and to encourage them to play an important role in conserving nature and wildlife.

This award was launched on 5th June, 1999.

This year Ishita Vishnoi won the “Young Environmentalist of the Year Award – 2010” for showing best performance in the National Level Written Quiz Contest conducted by National Museum of Natural History, New Delhi


Short definition of PMGSY

Pradhan Mantri Gram Sadak Yojana is a 100 % centrally sponsored scheme to provide road connectivity in the rural areas of the country. PMGSY envisages connectivity to all habitations with a population of 500 persons and above in the rural areas and about 250 persons and above in respect of the hilly states, tribal areas and desert areas through good and all weather roads.


Some initiatives by Culture Ministry

In the last year, the Indira Gandhi National Centre for the Arts (IGNCA) has organized eight major cultural events, namely, the Braj Bhumi festival, Nature Bazar, Surabhi Theatre festival, Inter-cultural Dialogue between North East India and South East Asia, International Federation of Library Association Conference, Vasant Bazar, Gharana festival and Women on Record: A Musical event. It is estimated that approximately seven to eight lakh people witnessed these events.

Preparations have started to commemorate the 150th birth anniversaries of Rabindranath Tagore and Swami Vivekananda, both nationally and internationally.

A project to set up a memorial for Shaheed Bhagat Singh, at his native place at Khatkar Kalan, has been sanctioned at a cost of Rs. 16.80 crore.

Rs. 46.38 crore have been released to the Government of Punjab for development of Talwandi Sabo and Anandpur Saheb as part of the concluding phase of the ter-centenary of Guru-ta-Gaddi of the Guru Granth Saheb.”


National Monuments Authority planned

In a major intervention to further safeguard India’s priceless monuments and archaeological sites, the Central government has recently amended the Ancient Monuments and Archaeological Sites and Remains Act, which prohibits construction, including public projects, within the 100 metre ‘prohibited area’.

It has also been stipulated that Heritage Bye-laws shall be prepared for each of these protected monuments so as to regulate building activities in the next 200 metre ‘regulated area’ that lies beyond the 100 metre ‘prohibited area’. A National Monuments Authority is being set up as the apex body to oversee the implementation of the Act.


India boceoms member of the Financial Action Task Force (FATF)

After nearly a five-year wait, India has finally become a full-fledged member of the Financial Action Task Force (FATF), an inter-governmental body responsible for setting global standards on anti-money laundering (AML) and combating financing of terrorism (CFT).

With its induction as the 34th member-country of the global body that chalks out policies to counter financial frauds, India will have access to information on suspicious financial transactions in Switzerland, China, the U.S. and the U.K. The development marks a significant step towards tracing the source of terror financing and black money stashed away in tax havens abroad.


550 new mobile towers to boost communication facilities

The Centre has started work on installing over 550 new mobile towers to boost communication facilities in the Naxal-affected districts in Jharkhand, Chhattisgarh and Bihar.

“The state-owned Bharat Sanchar Nigam Ltd. (BSNL) has already started work on the project so that adequate communication facility could be provided to security personnel and citizens living in these three States.

Mobile towers have become vulnerable targets and are often destroyed by the Maoists. The BSNL as well as private operators are finding it hard to re-erect destroyed towers due to security and financial reasons.


Central Scheme for Interest Subsidy for Edu. Loans

Ministry of Human Resource Development has finalized the modalities for implementation of a new Central Scheme to provide full interest subsidy during the period of moratorium on educational loans for students belonging to economically weaker sections (with parental family income from all sources of less than Rs.4.5 lakh annually) from scheduled banks under the Educational Loan Scheme of the Indian Banks’ Association (IBA) for pursuing courses of studies in professional/technical streams from recognized institutions in India.

The modalities have been finalized in consultation with the Indian Banks’ Association. The Scheme is effective for all IBA approved educational loans sanctioned in form of eligible students’ in respect of approval course of studies from the academic year 2009-10.


Intl Awards for Young People

The Vice President of India Shri M. Hamid Ansari presented the International Awards for Young People (IAYP) – India Gold Awards to the young awardees at a function here today. He presented 44 Gold Awards in 4 categories i.e Service, Adventurous Journey, Skills and Physical Recreation.

The International Awards for Young People (IAYP) is an exciting self-development programme for all young people aged between 14 and 25 years worldwide. It equips them with like skills, builds their confidence and engages them with their communities.

There are three Award Levels, Bronze, Silver and Gold, each requiring increasing commitment and effort. Bronze usually takes 6-12 months to complete, Silver 12-18 months and Gold 18-24 months.

The Award Programme comprises four Sections: Service develops a sense of community and social responsibility; the Adventurous Journey cultivates a spirit of adventure and an understanding of the environment; the Skills Section develops cultural, vocational and practical skills; and Physical Recreation encourages improved performance and fitness


Petrol and Diesel prices deregulated

To arrive at a viable and sustainable system of pricing of petroleum products, Government had set up an Expert Group under the chairmanship of Dr. Kirit Parikh.

In the light of Government’s budgetary constraints and the growing imperative for fiscal consolidation, and the need for allocating more funds to social sector schemes for the common man, the Government has decided that the pricing of Petrol and Diesel both at the refinery gateand the retail level will be market-determined. However, in respect of Diesel, the initial increase in retail selling price of Diesel will be Rs.2 per litre at Delhi, with corresponding increases in other parts of the country.

Further increases will be made by the Public Sector Oil Marketing Companies (OMCs) in consultation with the Ministry of Petroleum & Natural Gas. It has also been decided that in case of a high rise and volatility in international oil prices, Government will suitably intervene in the pricing of Petrol and Diesel.


Schemes to develop cold storage chains

National Horticulture Board (NHB) provides back-ended capital investment subsidy to the eligible organizations for creation/modernization/expansion of cold storage/Controlled Atmosphere Storage @ 25% of the project cost.

Under National Horticulture Mission (NHM) scheme, financial assistance is provided for the development of post harvest management including for cold storages and cold chain component. Subsidy @ 40% (for general areas) and 55% (for hilly and tribal areas) of capital cost of the project is available for both public and private sector enterprises. The subsidy for the private sector is credit linked and back-ended.

Under the Technology Mission for North East (TMNE) scheme, back-ended capital investment subsidy is provided for creation/modernization/expansion of cold storages @ 25% of the project cost.

For North Eastern Region, the subsidy is 33.33% of the project cost with a cost ceiling of Rs. 2.00 crore for 5000 MT.


10% Divestment in Coal India ltd

The Cabinet Committee on Economic Affairs gave its approval to divest 10% equity of the Coal India Limited out of its holding of 100% through book building process in the domestic market.

One percent of the equity will be offered to the employees of CIL and its eight subsidiaries. The CCEA has also decided to allow 5% price concession to the retail investors in order to encourage greater public ownership of the public sector companies.

After this disinvestment, Government of India’s shareholding in the company would come down to 90%..

Coal India Ltd. (CIL), a Central Public Sector Enterprise, is a Navratna Company engaged in production and marketing of coal and coal products. At present, the paid up equity capital of the company is Rs.6316.36 crore and the Government of India holds 100% of the equity in the company. .


BWA- Broadband Wireless Access.

BWA- Broadband Wireless Access. The BWA spectrum was auctioned by the Govt. BWA Spectrum is essential for rolling out WiMAX services enabling hand held devices and laptops to access Intranet. It will allow firms to offer high speed Net, Web telephony & TV Services. The govt fixed Rs.1750 crore as base rate for BWA license. The auction was held for 117 rounds and in 16 days. Rs.12848 crore was the pan India BWA license price which was won by Infotel Broadband services ( in all 22 circles). The Govt auctioned the BWA license for a total of Rs.38,543 crore. Mumbai had the highest bid of Rs.2293 crore followed by Delhi with Rs.2241 crore respectively.


India signed Civil Nuclear agreement with Canada.

India signed Civil Nuclear agreement with Canada. The agreement was signed by Manmohan Singh and Canada’s PM Stephen Harper. Canada is the 8th nation to enter into such an agreement with India. Canada served nuclear ties with India in 1974 when India conducted its first nuclear test at Pokhran in 1974. India’s nuclear power programme is based on the CANDU ( Canada Deuterium Uranium) reactor.


India become a full fledged member of the Financial Action Task Force (FATF)

India become a full fledged member of the Financial Action Task Force (FATF), a 34 member inter governmental body that devises policies at both national & international levels to combat money laundering and terrorist financing. FATF membership will enable Indian authorities to access information on suspect accounts in nations such as Switzerland & UK. India become its 34th member.

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