Vol 92 3rd September 2015 to 9th September 2015

7/25/2019 Vol 92 3rd September 2015 to 9th September 2015

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News from PIB & Various Sourcs

Following the Acceptance of the Recommendation of theJustice A.P.Shah Committee by the Government, CBDT

Advises its Field Authorities to keep in Abeyance, forthe Time being, the Pending Assessment Proceedingsin Cases of FIIS/FPIS Involving the Applicability ofMinimum Alternate Tax (MAT) on FIIS/FPIS for thePeriod Prior to 01.04.2015;

CBDT fu r t he r Adv i sed t hem no t to Pu rsue th e Recover y o f

Out s tand in g Dem ands , i f any , in such cases

A Committee on Direct Tax Matters chaired by Justice A.P.Shah , was constituted toexamine the issue of applicability of Minimum Alternate Tax (MAT) on FIIs/ FPIs for theperiod prior to 01.04.2015. The Committee has submitted its Final Report to the Govern-ment on 25.08.2015. The Committee has recommended that Section 115JB of the IncomeTax Act , 1961 (Act) may be amended to clarify the inapplicability of the provisions ofSection 115JB to FIIs/ FPIs having no permanent establishment (PE)/ place of business inIndia. The Government has accepted the said recommendation and it has been decided tocarry-out the appropriate amendment in the Act so as to prescribe that MAT provisionswill not be applicable to FIIs/ FPIs not having a place of business / permanent establish-ment in India, for the period prior to 01.04.2015.

The field authorities are accordingly advised to take into consideration the aboveposition and keep in abeyance, for the time being, the pending assessment proceedings incases of FIIs/ FPIs involving the above issue. They are further advised not to pursue therecovery of outstanding demands, if any, in such cases. An instruction to this effect has

been issued by the Central Board of Direct Taxes (CBDT) here yesterday.

President of India to present Gandhi Peace Prize 2014to ISRO

The President of India, Shri Pranab Mukherjee will present the Gandhi Peace Prize

for the year 2014 to Indian Space Research Organization (ISRO) tomorrow (September 9,2015) at a function at Rashtrapati Bhavan.

The Gandhi Peace Prize was instituted by the Government of India in 1995 on theoccasion of the 125th birth anniversary of Mahatma Gandhi. This annual award is givento individuals and institutions for their contributions towards social, economic and po-litical transformation through non-violence and other Gandhian methods.

Agriculture Expert Ramesh Chand appointed as new fulltime member of NITI Aayog

The Prime Minister has approved the appointment of agriculture expert Prof RameshChand as one of the full-time members in the NITI Aayog. He has been a member of atask force on agriculture development under NITI Aayog which is formulating strategies
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to give a boost to the agriculture sector. Shri Ramesh Chand has also headed a govern-ment panel on Minimum Support Price and has been working as Director of NationalInstitute of Agricultural Economics and Policy Research (NIAP) in New Delhi since 2010.

The National Institute of Transforming India, NITI Aayog under the Chairmanshipof Prime Minister Narendra Modi has been set up in place of place of Planning Commis-sion. It has noted economist Aravind Panagariya as its Vice Chairman while economistBibek Debroy and former DRDO Chief VKSaraswat along with agriculture expert RameshChand now as full time members.

Approval of National Offshore Wind Energy Policy

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi, has given itsapproval to the National Offshore Wind Energy Policy.

With this approval, the Ministry of New & Renewable Energy (MNRE) has beenauthorized as the Nodal Ministry for use of offshore areas within the Exclusive EconomicZone (EEZ) of the country and the National Institute of Wind Energy (NIWE) has been

authorized as the Nodal Agency for development of offshore wind energy in the countryand to carry out allocation of offshore wind energy blocks, coordination and allied func-tions with related ministries and agencies. The approval paves way for offshore windenergy development including, setting up of offshore wind power projects and researchand development activities, in waters, in or adjacent to the country, up to the seawarddistance of 200 Nautical Miles (EEZ of the country) from the base line.

Preliminary assessments along the 7600 km long Indian coastline have indicatedprospects of development of offshore wind power. With the introduction of the NationalOffshore Wind Energy Policy, the Government is attempting to replicate the success of theonshore wind power development in the offshore wind power development. The policy

will provide a level playing field to all investors/ beneficiaries, domestic and interna-tional. All the processes would be carried out in a transparent manner by NIWE.

The development would help the country in moving forward towards attaining en-ergy security and achievement of the NAPCC targets.

The scheme would be applicable throughout the country depending upon offshorewind potential availability.

Backg r ound :

Worldwide, wind energy is accepted as one of the most developed, cost-effectiveand proven renewable energy technologies to meet increasing electricity demands in a

sustainable manner. While onshore wind energy technologies have reached a stage oflarge scale deployment and have become competitive with fossil fuel based electricitygeneration, with supportive policy regimes across the world, exploitation of offshore windenergy is yet to reach a comparable scale. India has achieved significant success in theonshore wind power development, with over 23 GW of wind energy capacity alreadyinstalled and generating power.

Introduction of Sovereign Gold Bonds Scheme

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gaveits approval for introduction of the Sovereign Gold Bonds Scheme, as announced in theUnion Budget 2015-16.

The scheme will help in reducing the demand for physical gold by shifting a part ofthe estimated 300 tons of physical bars and coins purchased every year for Investment


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into gold bonds. Since most of the demand for gold in India is met through imports, thisscheme will, ultimately help in maintaining the countrys Current Account Deficit withinsustainable limits.

The issuance of the Sovereign Gold Bonds will be within the governments marketborrowing programme for 2015-16 and onwards. The actual amount of issuance will bedetermined by RBI, in consultation with the Ministry of Finance. The risk of gold pricechanges will be borne by the Gold Reserve Fund that is being created. The benefit to theGovernment is in terms of reduction in the cost of borrowing, which will be transferred tothe Gold Reserve Fund.

The salient features of the scheme are:-

i. Sovereign Gold Bonds will be issued on payment of rupees and denominated ingrams of gold.

ii. Bonds will be issued on behalf of the Government of India by the RBI. Thus, theBonds will have a sovereign guarantee.

iii. The issuing agency will need to pay distribution costs and a sales commission to theintermediate channels, to be reimbursed by Government.

iv. The bond would be restricted for sale to resident Indian entities. The cap on bondsthat may be bought by an entity would be at a suitable level, not more than 500grams per person per year.

v. The Government will issue bonds with a rate of interest to be decided by theGovernment. The rate of interest will take into account the domestic and internationalmarket conditions and may vary from one tranche to another. This rate of interestwill be calculated on the value of the gold at the time of investment. The rate could

be a floating or a fixed rate, as decided.

vi. The bonds will be available both in demat and paper form.

vii. The bonds will be issued in denominations of 5,10,50,100 grams of gold or otherdenominations.

viii. The price of gold may be taken from the reference rate, as decided, and the Rupeeequivalent amount may be converted at the RBI Reference rate on issue andredemption. This rate will be used for issuance, redemption and LTV purpose anddisbursement of loans.

ix. Banks/ NBFCs/ Post Offices/ National Saving Certificate (NSC) agents and others,as specified, may collect money / redeem bonds on behalf of the government (for a

fee, the amount would be as decided).

x. The tenor of the bond could be for a minimum of 5 to 7 years, so that it would protectinvestors from medium term volatility in gold prices. Since the bond, will be a partof the sovereign borrowing, these would need to be within the fiscal deficit target for2015-16 and onwards.

xi. Bonds can be used as collateral for loans. The Loan to Value ratio is to be set equal toordinary gold loan mandated by the RBI from time to time.

xii. Bonds to be easily sold and traded on exchanges to allow early exits for investorswho may so desire.

xiii. KYC norms will be the same as that for gold.

xiv. Capital gains tax treatment will be the same as for physical gold for an individualinvestor. The Department of Revenue has agreed that amendments to the existing


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provisions of the Income Tax Act, for providing indexation benefits to long termcapital gains arising on transfer of bond; and for exemption for capital gains arisingon redemption of SGB will be considered in the next budget (Budget 2016-17).Thiswill ensure that an investor is indifferent in terms of investing in these bonds and inphysical gold- as far as tax treatment is concerned.

xv. The amount received from the bonds will be used by Gol in lieu of government

borrowing and the notional interest saved on this amount would be credited in anaccount Gold Reserve Fund which will be created. Savings in the costs of borrowingcompared with the existing rate on government borrowings, will be deposited in theGold Reserve Fund to take care of the risk of increase in gold price that will be borne

by the government. Further, the Gold Reserve Fund will be continuously monitoredfor sustainability.

xvi. On maturity, the redemption will be in rupee amount only. The rate of interest on thebonds will be calculated on the value of the gold at the time of investment. Theprincipal amount of investment, which is denominated in grams of gold, will beredeemed at the price of gold at that time. If the price of gold has fallen from the time

that the investment was made, or for any other reason, the depositor will be given anoption to roll over the bond for three or more years.

xvii. The deposit will not be hedged and all risks associated with gold price and currencywill be borne by Gol through the Gold Reserve Fund. The position may be reviewedin case Gold Reserve Fund becomes unsustainable.

xviii.Upside gains and downside risks will be with the investor and the investors willneed to be aware of the volatility in gold prices.

xix. In order to ensure wide availability, the bond will be marketed through post offices/banks/ NBFCs and by various brokers/ agents (including NSC agents) who will bepaid a commission.

Review of Foreign Direct Investment (FDI) Policy - topermit FDI, up to 100 percent, under the automaticroute, in White Label ATM Operations

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi, has given itsapproval to permit Foreign Direct Investment (FDI), up to 100 percent, under the auto-matic route, in the activity of White Label ATM (WLA) Operations subject to the follow-ing conditions:

i. Any non-bank entity intending to set up WLAs should have a minimum net worthof Rs. 100 crore as per the latest financial years audited balance sheet, which is to bemaintained at all times.

ii. In case the entity is also engaged in any other 18 Non-Banking Finance Companies(NBFC) activities, then the foreign investment in the company setting up WLA, shallalso have to comply with minimum capitalization norms for foreign investments inNBFC activities, as provided in Para 6.2.18.8.2 of the Consolidated FDI Policy Circular2015.

iii. FDI in the WLAO will be subject to specific criteria and guidelines issued by RBIvide Circular No. DPSS.CO.PD. No. 2298/ 02.10.002/ 2011-2012, as amended from

time to time.This decision, will ease and expedite foreign investment inflows in the activity and

thus give a fillip to the Governments effort to promote financial inclusion in the country,


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including the Pradhan Mantri Jan Dhan Yojana. It is expected that consequent to easeof investing in India, adequate investments would be available in WLA Operations. Thiswould help in the governments objective of enhancing ATM networks in semi-urban andrural areas (mainly in Tier III to VI areas).

Participation of foreign investors in the sector will contribute to furthering financialinclusion.

Backg r ound :

One of the main objectives of the Government is to achieve financial inclusion in thecountry. In this regard, ATMs have been leveraged for delivery of a wide variety of bank-ing services to customers such as the facility of accessing their accounts for dispensingcash and to carry out other financial and non-financial transactions without the need foractually visiting their bank branch. While, there has been year-on-year growth in thenumber of ATMs, yet their deployment has been predominantly in Tier I & II centres. Toexpand the reach of ATMs in Tier III to VI centres, non-banks entities were also allowed toset up ATMs, and such ATMs are known as White Label ATMs.

Till date foreign investment in White Label ATM Operations (WLAO), was beingallowed only through government approval route. This required some processing timeand projects were consequently delayed, dissuading investors from investing in such criti-cal areas.

Constitution of 21st Law Commission of India for aperiod of three years

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi, has given itsapproval on the Constitution of the 21st Law Commission of India, for a period of three

years w.e.f. 1st September. 2015 to 31st August, 2018.The 21st Law Commission will consist of:-

(i) a full-time Chairperson;

(ii) four full-time Members (including a Member-Secretary);

(iii) Secretary, Department of Legal Affairs as ex off do Member;

(iv) Secretary, Legislative Department as ex offcio Member; and

(v) not more than five part-time Members.

The Law Commission shall, on a reference made to it by the Central Government orsuo-motu, undertake research in law and review of existing laws in India for making

reforms therein and enacting new legislations. It shall also undertake studies and re-search for bringing reforms in the justice delivery systems for elimination of delay inprocedures, speedy disposal of cases, reduction in cost of litigation etc.

The other functions of the Law Commission shall, inter-alia, include:-

a) identification of laws which are no longer relevant and recommending for the repealof obsolete and unnecessary enactments;

b) suggesting enactment of new legislations as may be necessary to implement theDirective Principles and to attain the objectives set out in the Preamble of theConstitution;

c) considering and conveying to the Government its views on any subject relating tolaw and judicial administration that may be specifically referred to it by theGovernment through Ministry of Law and Justice (Department of Legal Affairs);


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d) considering the requests for providing research to any foreign countries as may bereferred to it by the Government through Ministry of Law & Justice (Department ofLegal Affairs);

e) preparing and submitting to the Central Government, from time to time, reports onall issues, matters, studies and research undertaken by it and recommending in suchreports for effective measures to be taken by the Union or any State; and

f) performing such other functions as may be assigned to it by the Central Governmentfrom time to time.

Before concretizing its recommendations, the Commission will consult the nodalMinistry/ Departments and such, other stakeholders as the Commission may deem nec-essary for the purpose.

Backg r ound

The Law Commission of India is a non-statutory body constituted by the Govern-ment of lndia from time to time. The Commission was originally constituted in 1955 and

is re-constituted every three years. The tenure of the 20th Law Commission was upto 31stAugust, 2015.

The various Law Commissions have been able to make important contribution to-wards the progressive development and codification of laws of the country. Law Com-missions have so far submitted 262 reports.

Preferential Treatment by India to Least Developed Countries (LDCs) in Trade inServices in the WTO

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gaveits approval for notification of Preferential Treatment by India to Least Developed Coun-

tries (LDCs) in Trade in Services in the WTO.

India will notify preferential treatment to the LDCs in Trade in Services in respectof:

1. Article XVI of the GATS (Market Access);

2. Technical Assistance and capacity building; and

3. Waiver of visa fees for LDC applicants applying for Indian Business and Employmentvisas.

The preferences will be bound with validity for 15 years

from the date of notification by India.

A generous offer in Trade in Services by India should win the country goodwill ofLDCs. India has already made a very generous offer to LDCs in the area of Trade inGoods in the form of a Duty Free Tariff Preference (DFTF) scheme. An equally generousoffer in Trade in Services will help India preserve and consolidate its leadership positionon LDC issues. Further, given the development dimension of the Doha Round of theWTO, it is important that India makes liberal offers to LDCs in Trade in Services also.Moreover, several of the LDCs are located in South Asia while majority are in Africa withwhom India maintains special relations.

Indias preferential treatment to the LDCs in Trade in Services would involve a costof Rs. 6.5 crore annually on account of waiver of visa fees and Rs. 2.5 to 3 crore, perannum, for providing training in management and technical consultancy courses to LDC


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applicants. As regards offers under Article XVI of the GATS (Market Access) is concerned,there are no direct financial implications.

Backg r ound :

As per the WTO mandate, decisions of the WTO Ministerial Conferences and re-quests made by the Least Developed Countries (LDCs), developed country and develop-

ing country members of the WTO, in a position to do so, were to voluntarily considerproviding LDCs preferential treatment in Trade in Services.


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National News

India has added 52 million Internet users in first sixmonths

India has added 52 million Internet users in first six months of the year, taking thetotal user base to 352 million as on June 30, 2015, industry body IAMAI today said.

Interestingly, 213 million (over 60%) users accessed the worldwide web throughmobile devices.

The number of Internet users has grown over 26% from 278 million in October 2014.The number of mobile Internet users has also grown about 40% from 159 millionusers in October last year.

The Internet in India took more than a decade to move from 10 million to 100 millionand 3 years from 100 to 200 million. However, it took only a year to move from 200 to300 million users. Clearly, Internet is mainstream in India today, it said.

Another blow for Greenpeace India

Stating that Greenpeace India has continued to violate FCRA norms, the Ministryof Home Affairs (MHA) has cancelled the registration of the NGO under the ForeignContribution Regulation Act.

In an affidavit filed before the Delhi High Court Thursday, the MHA said the decisionto cancel the FCRA registration was taken at a meeting Wednesday. The MHA hadearlier said Greenpeace India mixed foreign and domestic funds and had not

disclosed the movement of funds properly. Responding to the MHA affidavit, Greenpeace India issued a statement that it would

continue its campaign despite the governments onslaught against thecommunitys right to dissent.

In April this year, the MHA suspended registration of the NGO saying it had violatednorms by opening five accounts to use foreign donations without informing theauthorities concerned. On MHA directions, the IDBI, ICICI and Yes Bank had frozenthe NGOs accounts.

Greenpeace India then moved an application challenging the arbitrary decision ofthe MHA and was granted relief on May 27 by the court which allowed it to use two

of its accounts for receiving and utilising fresh domestic donations for day-to-dayfunctioning.

It also allowed the NGO to liquidate its fixed deposits, saying these and freshdonations should be used for its aims and objectives, and in accordance with law.

The NGO moved an application seeking an order directing respondents 1 (MHA)and 2 (IDBI) to remit/ transfer 148,608 Euros, that was blocked by the incidentalmeasures impugned in the writ petition, transferred by Stichting Greenpeace Council(Greenpeace International) to petitioners (Greenpeace India) FCRA account

HC allows permanent commission for women in Navy

In a major relief for women naval officers, Delhi High Court on Friday allowed abunch of pleas seeking permanent commission for them in the force, saying "sexistbias and service bias" would not be allowed to block progress of women.


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The court, while granting their plea, said the "women are here to stay" and sincethey "work shoulder to shoulder" with their male counterparts, it would "frownupon any endeavour to restrain the progress of women".

While the Army and Air Force allow permanent commission for women, the Navyhas limited women officers only to short service commission of 14 years.

A bench of justices Kailash Gambhir and Najmi Waziri also allowed the womennaval officers' plea seeking retirement benefits like pension.

Women naval officers were not eligible for pension as it required 20 years of service.

The order came on the plea of several naval women officers, both retired and serving,from the logistics, education and air traffic control departments of the Navy.

The women naval officers in their pleas in the high court had sought similar rights astheir counterparts in the other two wings of the armed forces.

They had also alleged gender discrimination, saying while women officers wereonly entitled to short service commission, men were entitled to both short service aswell as permanent commissions

Government to modernize Nehru Museum The National Implementation Committee constituted by the government has

recommended plans for modernization of the Nehru Museum in New Delhi as partof the 125th Birth Anniversary of India's first prime minister Jawaharlal Nehru.

The recommendations were made with a view to spread the Nehru's ideas andawareness about freedom struggle and history of modern India.

"There will be a special focus on the governance of India under Jawaharlal Nehru asthe first Prime Minister of India which has been largely left out in the presentexhibition," a statement from Nehru Museum said.

The modernization plan includes the Teen Murti Bhavan, home of Nehru as theprime minister.

Govt find new way to resolve call drops

The Department of Telecom may go slow for auction of spectrum next year if operatorsdo not invest in infrastructure to make optimum use of available airwaves andimprove quality of services, sources said.

According to official sources, the DoT is of the view that despite auctioning the largestamount of spectrum earlier this year, operators are not investing in infrastructure, as

required, which is leading to call drop problem.

The DoT had planned to conduct the auction early next year but is now reconsideringon the timeframe.

The DoT has already written to sectoral regulator TRAI for seeking reserve price ofvarious bands including 700, 800, 900, 1800, 2100 and 2300 MHz that can be used for2G, 3G and 4G services.

The government expects a revenue Rs 42,865.62 crore from communication servicesin 2015-16, which include proceeds from spectrum auction and other charges levied

by the DoT.

An audit by DoT recently found out lack of investment in infrastructure along withoperators putting more equipment for 4G services than for 2G or GSM as the mainreasons for call drops.


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World Hindi Conference in Bhopal

The three-day World Hindi Conference in Bhopal is going to be a mega event; atleast the preparations afoot suggest so.

But the ministry of external affairs and the state government are tight-lipped aboutthe budget of the conference that will be inaugurated on September 10 by Prime

Minister Narendra Modi.

There is dynamism in the budget process. Funds would be no constraint for such aprogramme, said minister of state for external affairs, Gen (retired) VK Singh.

The Bhopal Municipal Corporation and district administration, which has beencarrying out various beautification works across the city, told HT that most of theworks were being carried out in anticipation that the budget would be sanctioned.

Some officials hinted that the ministry of external affairs had decided upon a budgetof Rs 20 crore for the event.

But the expenses are expected to go much beyond the mark and the state governmentis expected to bear the budget above this limit, said the official, not wishing to benamed.


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International News

China commemorating Japan's World War II defeat Tanks, missiles and troops in lock-step filed past Beijing's iconic Tiananmen Square

in a massive parade Thursday commemorating Japan's World War II defeat 70 yearsago and underlining President Xi Jinping's determination to make China the pre-eminent Asian power.

To underline China's position that its rise is peaceful and poses no threat to neighbors,Xi pledged to cut 300,000 troops from the 2.3 million strong People's Liberation Army,the world's largest standing military. Helicopters zoomed overhead in an arrayforming the number

Xi kicked off the proceedings with a speech at the iconic Tiananmen Gate in the heartof Beijing, flanked by Chinese leaders and foreign dignitaries, including Russianleader Vladimir Putin, South Korean President Park Geun-hye and U.N. Secretary

General Ban Ki-moon. The spectacle involved more than 12,000 troops, 500 pieces of military hardware and

200 aircraft of various types, representing what military officials say is the Chinesemilitary's most cutting-edge technology.

The parade is part of commemorations packaged to bolster the ruling CommunistParty's self-declared role as the driving force behind Japan's defeat 70 years ago andsavior of the nation, though historians say the rival Nationalists did most of thefighting. The events also minimize the role of the U.S., Britain and others.

Guatemala,s internal crisis

An arrest warrant has been issued for Guatemalan President Otto Prez Molina, theAttorney General's Office said Wednesday.

The development came a day after the nation's congress voted to strip Prez Molinaof his immunity. The move paved the way for his possible prosecution as part of acorruption investigation that has shaken his government and sparked protests callingfor his resignation.

The President is prohibited from leaving the country, Attorney General Thelma Aldanatold CNN en Espaol.

According to the Attorney General's Office and a U.N. investigating commission,

Prez Molina and a group of close aides within his administration received bribes inexchange for lowering taxes for

England set to accept more migrants

David Cameron is expected to announce plans later to increase the number of refugeesbeing allowed into the UK.

No specific figure has been agreed, but Mr Cameron has previously said the UKwould continue to take in "thousands".

The extra refugees are expected to come from UN camps bordering Syria, and not

from among people already in Europe. The PM, who has faced growing pressure to do more to address the crisis, is likely to

make an announcement in Spain after talks with fellow leaders.


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He is meeting his Portuguese and Spanish counterparts for talks that had beenintended to focus on his desire for EU reform, but which will be overshadowed bythe migrant crisis.

He still thinks opening up Europe's borders and agreeing quotas will not solve therefugee crisis. In fact, he thinks it would make it worse by increasing pull factors andencouraging people traffickers.

But, as the crisis gets worse and the public and political pressure grows, the primeminister does now accept that Britain has a moral duty to do more.

Seeking asylum in the UK

25,771 people applied for asylum in the UK in the year ending June 2015

41%(11,600) were granted asylum

14% of applicants were from Eritrea

9% were from Pakistan

8.5% were from Syria

2,168 applications were from unaccompanied children

Germany allots refugee funds, speeds up asylumprocedures

The German government earmarked additional 3 billion ($3.35 billion) for federalstates and municipalities to help cope with this year's record influx of refugees, saida joint statement by the ruling coalition issued on Monday.

German Chancellor Angela Merkel said on Sunday that there was no need to hike

taxes to cope with the migrants' influx. Leaders from Chancellor Angela Merkel's governing coalition also agreed at a

marathon high-level meeting on other measures such as speeding up asylumprocedures and facilitating the construction of asylum shelters.

The government is also planning to free up an additional 3 billion to fund its ownexpenses, such as paying benefits for asylum seekers, the joint statement said.

Germany expects a record influx of 800,000 migrants and refugees this year, by farthe most in the European Union. In August alone, more than 100,000 asylum seekerswere registered in Europe's largest economy

North-South Korea agree to family reunions North and South Korea have agreed to host family reunions for families separated

by the Korean War, according to media reports.

The reunions for 100 separated families will be held Oct. 20-26 at Mount Kumgang,a resort on the North's east coast., South Korea's Yonhap news agency reportedTuesday.

They will be the first reunions since February 2014 and only the second in the pastfive years.

The BBC reported that the talks were being held by Red Cross officials from bothsides.

The two countries remain technically at war as the Korean War only ended in anarmistice.


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The discussions come after tense weeks on the Korean peninsula, which includedexchanges of fire at the border and the evacuation of thousands of South Koreansfrom the border region.

Tensions began when a border landmine injured two South Korean soldiers. SouthKorea responded by broadcasting propaganda messages into the North.

The two sides reached an agreement to defuse the situation after marathon talks, theBBC reported.

Shinzo Abe Re-elected as Leader of Ruling Party

Japans governing Liberal Democratic Party re-elected Prime Minister Shinzo Abeas its president on Tuesday after his potential rival, Seiko Noda, failed to achieveenough support from lawmakers to contest the post. Mr. Abe will remain party leaderfor a second three-year term.

Mr. Abe also pledged to push forward with his plan to permit Japans military to bedispatched to conflicts abroad, which has been banned for 70 years under the pacifist

Constitution.

Legislation allowing that change is expected to be enacted next week, despite rarelarge-scale protests across the country.

Denmark: launches anti-migrant ad campaign

The Danish immigration ministry has placed adverts in leading Lebanese newspapersto discourage refugeesfrom heading to Denmark.

They warn that benefits have been cut by up to 50% for asylum seekers. 20,000 refugeesare expected in Denmark this year, compared to 14,000 in 2014.

Lebanon, with a population of four million, is sheltering 1.1 million people.

The situation in Denmark

Hundreds have crossed from Germany into Denmark over the last few days.

Many want to travel on to Sweden and so try to avoid being registered in Denmark.

Danish rules on accepting refugees are seen as stricter than many other Europeannations.

UPDATE 1-China monthly copper imports flat in August

China's copper imports were flat in August from the previous month despite weakinternational prices, hit by slowing growth in the world's No.2 economy.

Imports of anode, refined copper, copper alloys and semi-finished copper productsstood at 350,000 tonnes in August, little changed from July and June, data from theGeneral Administration of Customs showed on Tuesday.

The inflows rose 2.9 percent from a year ago. In the first 8 months of this year, arrivalsstood at 2.94 million tonnes, down 8.1 percent from the same period last year, aftermany importers cut term shipments for 2015 on worries over the slowing domesticeconomy.

He said the demand for fresh arrivals would rise as the supply of bonded copperstocks was drying out, which could push up imports in September.

Copper touched a six-year low of $4,855 a tonne last month.


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Business and Economy

Centre,s u-turn now auction 69 state-owned oil, gasfields

The 69 small and marginal fields holding 89 million tonne of oil and gas resources,worth Rs 70,000 crore at current rates, will be given to explorers offering the maximumrevenue from hydrocarbon produced to the government.

Bidders will be asked to quote the revenue they will share with the government atlow and high end of price and production band to capture windfall of steep rise inprices as well as quantum jump in production.

The government will allow companies to sell oil as well as natural gas producedfrom these fields at market price and with no restriction on who they sell the produceto.

While oil is priced at global benchmark currently, a complex international hub based

formula determines gas price, which is roughly half of the rate at which India importsgas.

This model was criticised by CAG which said it encouraged companies to keep raisingcost so as to postpone higher share of profits to the government.

Import of ammonium nitrate in loose form banned In a major relief to domestic manufacturers and security agencies, the Ministry of

Home Affairs is learnt to have asked the Department of Industrial Policy & Promotion(DIPP) not to allow bulk import of ammonium nitrate (AN) in loose form because itposes a threat to the national security.

As per the directive, the chemical has to be imported in bagged form only,irrespective of the quantity in each bag, and the consignment has to be packed at thepoint of origin.

With this, the August notification of the Ministry of Shipping that allowed a southIndian port to facilitate bulk import in any form has become null and void.

The green signal for bulk import in any form was interpreted as import in a looseform. A possible indiscriminate import raised security concerns as ammonium nitrateis an extremely dangerous explosive substance.

What had prompted the Shipping Ministry to grant the relaxation is not known.

Domestic manufacturers such as Rashtriya Chemicals & Fertilizers Ltd., Gujarat State

Fertilizers & Chemicals Ltd. and Deepak Fertilisers & Petrochemicals CorporationLtd., which together have an installed capacity of 770,000 MT of ammonium nitrate,had raised objections as cheaper imports would have severely affected their business.

Besides, they had invested in bar-coding of ammonium nitrate bags, IT infrastructureand tracking devices to comply with the guidelines for ensuring that even a smallquantity does not fall into the wrong hands.

The chemical is so dangerous that the Home Ministry, in its latest order, has made itmandatory for vehicles transporting it to have two armed guards with the GPS system.

India consumes 700,000 MT of ammonium nitrate, a raw material for making civilexplosives for mining and infrastructure.

Since imports are 15-20 per cent cheaper, explosive manufacturers who supply tomining and infrastructure companies have been lobbying for bulk import, especiallyin loose form.


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India & the world

Australia, India step up defence ties

AUSTRALIA and India are stepping up defence ties, holding a joint naval exercise

every two years and launching new partnerships in defence science, peacekeepingand countering terrorist bombs.

IN a joint communique, Defence Minister Kevin Andrews and his Indian counterpartManohar Parrikar said they wanted to broaden and deepen the defence relationship.

Given common interest in the Indian Ocean and its importance to regional and globaltrade, maritime security would remain a central component of the bilateral defencerelationship, the ministers said following Mr Andrews' visit to India this week.

India's GVK wins court fight over Australian coal mine

Green groups lost a fight to stop billionaire Gina Rinehart and India's GVK frombuilding a giant coal minein Australia, as a court on Friday dismissed an appealagainst the state of Queensland's environmental approval for the project.

Conservation group Coast and Country, originally working for three farmers, hadsought to have the state environmental approval for GVK-Hancock's 30 million tonnesa year Alpha mine overturned based on the impact it would have on water supplyand climate change.

The state Land Court last year ruled that the mine should be approved with strictwater management conditions or rejected.

But the green group appealed that decision to the Supreme Court saying the LandCourt did not have the right to issue two alternative recommendations and shouldhave rejected the mine outright.

The Queensland Supreme Court dismissed the appeal on Friday.

The ruling eliminated one hurdle for the $10 billion Alpha mine, rail and port project,which has effectively been put on ice until it obtains a mining permit and overcomesa lack of funding due to a slump in coal prices.

India cant compete with China on INDCs

As the world eagerly awaits Indias climate action, there is absolute clarity that thecountrys intended nationally determined contributions (INDCs) will not be similarto that of China.

The inter-governmental consultations on framing up the INDCs have shown thatIndia is nowhere close to China on energy generation and consumption -- drivers fordeciding a nations climate action.

Chinas installed energy capacity is five times that of India; every household in Chinahas access to electricity unlike 56% households in India and just a quarter ofhouseholds in China use biomass for cooking as compared to 85% of rural homes inIndia.

When it comes to emissions, more than one-fourth of global emissions were by Chinaas compared to just 6% for India in 2014. Indias per capita emissions are one-third ofChinas.


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These are some facts that energy ministries -- power, coal and new and renewableenergy (RE) -- have conveyed to the environment ministry during consultation forfirming up Indias INDCs. They have also highlighted why coal-based thermal powerplants were necessary for India to continue high economic growth trajectory in thenext 15 years or so.

Documents accessed by Hindustan Times show these ministries have strongly voicedtheir opposition towards any attempt to match China on INDCs as it could haveimplications on the countrys economic growth.

Former Planning Commission member Kirit Parikh too has strongly advocated againstpushing renewable beyond a certain threshold to match Chinas ambitious RE goal.

China has committed to generate 20% of its energy needs from renewable sources by2030, reduce carbon dioxide emissions per unit of GDP by 60-65 per cent by 2030from 2005 levels and limit power generation from thermal power plants.

Something similar could be disastrous for India, which is expected to submit itsINDCs in September to the United Nations Framework Convention on Climate

Change (UNFCCC) after getting Cabinets nod.

Chinas installed energy capacity is five times that of India, every household in Chinahas access to electricity unlike 56% households in India and just a quarter ofhouseholds in China use biomass for cooking as compared to 85% of rural homes inIndia.

When it comes to emissions, more than one-fourth of global emissions were by Chinaas compared to just 6% for India in 2014. Indias per capita emissions are one-third ofChinas.


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Sports

Pujara,Sharma break into top 20 of ICC Test rankings

Pacer Ishant Sharma broke into the bowlers' top-20, while Cheteshwar Pujara entered

the top-20 of batsmen's list as Indian cricketers gained significantly in the latest ICCTest rankings following their first series triumph in Sri Lanka in 22 years.

"Cheteshwar Pujara has broken into the top 20 of the ICC Player Rankings for TestBatsmen for the first time in his career following the conclusion of the Colombo Test,which India won by 117 runs to clinch the series 2-1," the ICC said in a statement.a

The 27-year-old batsman carried his bat in the first innings and returned unbeatenon 145 not out, his seventh career century, which was the cornerstone of India's firstinnings score of 312.

For this performance, Pujara has been rewarded with a jump of four places, which

puts him in 20th position. Pujara is now the second India batsman to feature in the top 20, but following Virat

Kohli's drop to 11th (down by one place), the fifth-ranked side has no batsman insidethe top 10.

Rohit Sharma has moved up two places to 48th, Ravichandran Ashwin has gainedfive places and is now in 50th spot, while Amit Mishra, who scored 59 in the firstinnings and featured in a 104 runs eighth wicket partnership with Pujara, has vaulted56 places to 91st.

India rise a spot to 155th in FIFA rankings

India have jumped a place to the 155th spot in the global football rankings releasedon Thursday.

According to the rankings released by world football governing body FIFA, Indiafared marginally better as they moved up a place from their previous 156th position.

India dropped 15 places to the 156th spot earlier in July following two consecutivedefeats in the 2018 FIFA World Cup qualifiers.

India will face Iran in a World Cup qualifier in Bengaluru on September 8.

The team, coached by Stephen Constantine, was held goalless by Nepal in a practice

match in Pune on August 31. Copa America runners-up Argentina continued to top the list, which they attained

in July, ahead of second-placed Belgium and world champions Germany, who arethird.

Colombia and five-time world champions Brazil round off the top five list, in thefourth and fifth places, respectively. Portugal are sixth in the rankings, ahead ofseventh-placed Romania and Chile.

Haryana government grants Vijender permission to turn

professional Vijender Singhs bout with the Haryana government over chasing his professional

boxing dreams is over.


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The Beijing Olympics bronze medallist can go ahead with his plans with the Haryanagovernment finally approving his leave application to train in England to competein the professional circuit.

Vijender, a Deputy Superintendent in Haryana Police, had in July sought a yearsextraordinary leave (from August 2015) to train and compete.

The government didnt give its approval, which whipped up a controversy. However,it gave its approval a couple of days ago.

Around 15 athletes from Haryana Police figure in various professional leagues,including the pro-kabaddi league.

Anirban Lahiri becomes first Indian to qualify forPresidents Cup team

Anirban Lahiri added another feather to his cap by becoming the first Indian toqualify for the prestigious Presidents Cup.

Lahiri, World No.40, came through as one of the automatic qualifications for theInternational Team, which will take on United States in the biennial Presidents Cupin Korea.

In the International Team standings, the deadline for which ended on Monday, Lahirifinished seventh to make the team.

Also becoming the first from his country to make the team was Thailands ThongchaiJaidee, who was ninth

At one stage, Lahiri had fell out of the Top-10, but his fifth place finish at the PGAChampionships hauled him back into the zone.


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History

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24/40



Science & Tech

Enzyme responsible for protection against asthma andallergy identified

The reason why children who grow up on dairy farms are less likely to suffer fromallergies and asthma has been unravelled by a study.

Using mice and human samples, a team of scientists found that high-level exposureto bits of bacteria (endotoxin or lipopolysaccharide (LPS)) found in farm dust initiallytriggers an inflammatory response in the lungs of the animals but eventually goeson to protect them from asthma. The results of the study were published today in the

journal Science.

Martijn J. Schuijs, the first author of the paper from the VIB Inflammation ResearchCenter, Ghent, Belgium, and others tried to establish whether exposure to

environmental endotoxin offered the protective effect against asthma in mice andalso study the mechanism of protection.

To do this, they exposed mice to low dose of endotoxin every day for two weeksbefore challenging them with dust mites. While the mice exposed to endotoxins didnot develop allergic features, the mice in the control group did.

India,s initiative to save the vulture

In a major step, the Union Ministry of Health has banned multi-dose vials of humanformulations of diclofenac, a painkilling drug that is responsible for the death ofvultures in large numbers, reducing them to a critically endangered species in Indiaand other Asian countries.

The ban has come into force with immediate effect.

The painkiller was banned from veterinary use in India in 2006 because of its lethaleffects on vultures, which feed on carcasses of treated cattle and buffaloes.

But since then human formulations of the drug have been illegally used to treatanimals.

The ban restricts diclofenac production to human formulations in a single 3ml dose,according to a note from Bird Life International, a global partnership of independent

organisations working together for nature and people across more than 120 countriesworldwide.

In India it partners with the Bombay Natural History Society (BNHS).

Veterinary diclofenac caused a decline in the populations of three species of SouthAsias Gyps vulture: white-rumped, long-billed and slender-billed vultures.

Oriental white-backed vultures declined by more than 99.9 per cent between 1992and 2007, a loss of tens of millions.

After years of campaigning by conservationists, the governments of Bangladesh,India, Nepal and Pakistan banned veterinary formulations of diclofenac between

2006 and 2010. In India vulture population declined from over four crore to about a lakh in 2007.

Recently, experts recorded a slowing of the Gyps vulture decline as a result of thebans.


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However, human formulations of diclofenac are still widely available and illegallyused to treat livestock, the carcasses of which are the main food source for vulturesin South Asia, the note said.

Rapid TB tests could reduce mortality: New study

Three new tests for more rapidly diagnosing drug-resistant forms of tuberculosis(TB) could help make treatments more effective and reduce mortality,according to astudy conducted in three countries including India.

Drug-resistant forms of TB are much harder and more expensive to treat and representa major threat to global public health, experts say. "Our study shows that TB testingthat once took two to three months can now be done in as little as a day," said co-author Richard Garfein, professor at the University of California, San Diego Schoolof Medicine.

TB remains one of the world's deadliest infectious diseases, causing (or contributingto) an estimated 1.5 million deaths in 2013, according to the World Health

Organisation.TB is also the leading killer of people who have HIV, researchers said. For the study, sputum (a mixture of saliva and mucus coughed up from the lungs)

from 1,128 study participants at TB clinics in India, Moldova and South Africa wereexamined using three rapid tests for detecting drug-resistant forms of TB.

Two of these tests use molecular techniques to look for genetic mutations in thepathogen's DNA that confer resistance to antibiotics.

The third test employs a low-cost and easy-to-use version of the standard bacterialculture technique, making it suitable for resource-limited community clinics andhospitals.

An estimated 95% of TB deaths globally occur in low- and middle-income countries.Results from the rapid tests were then compared to the reference standard techniquefor detecting resistance to seven of the most important anti-TB drugs.

These comparisons showed that all three rapid assays accurately identified resistanceto first- and second-line oral antibiotic treatments (isoniazid, rifampin, moxifloxacinand ofloxacin). They were less accurate but still very good at detecting resistance toinjectable antibiotics (amikacin and capreomycin) typically administered to thosewith multi-drug resistant TB, researchers said.

The rapid tests performed poorly in detecting resistance to only one drug, theinjectable antibiotic kanamycin, which is also used to treat multi-drug resistant TB.

The study also documented the time it took to obtain results. The molecular techniquesshowed themselves to be superior, with a mean time of 1.1 days for both DNA testingmethods; 14.3 days for the rapid culture method; and 24.7 days for the referencestandard test.


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Selected Articles from variousNewspaper & Magazines

A pernicious lawThe Union governments contention in the Supreme Court that the provisions in the

Indian Penal Code on criminal defamation do not have a chilling effect on free speechwill disappoint proponents of fundamental freedoms. The zeal to retain a law that thestate can use to stifle criticism is at the heart of the governments position. It also goesagainst democratic opinion in many jurisdictions that treats defamation essentially as acivil wrong, and not something to be remedied by the use of the states coercive policepowers. The United Nations Special Rapporteur on freedom of expression, the HumanRights Committee of the International Covenant on Civil and Political Rights and otherinternational bodies have called upon states to abolish criminal defamation, recognising

that it intimidates citizens and dissuades them from exposing wrongdoing. The groundscited by the Centre now to justify the continuance of Sections 499 and 500 of the IPC,which deal with defamation and prescribe a maximum jail term of two years, are spe-cious: that in India, citizens are unlikely to have enough liquidity to pay damages for civildefamation; that online defamation in the Internet age can be effectively countered only

by making it a criminal offence, and that the law is part of the states compelling inter-est to protect the dignity and reputation of citizens. What it fails to see is that the mainfeature of criminal defamation is its potential for harassment. It is a tool that can be easilyinvoked and that enables allegedly defamed persons to drag anyone to courts across thecountry.

Criminal defamation has a pernicious effect on society: for instance, the state uses itas a means to coerce the media and political opponents into adopting self-censorship andunwarranted self-restraint; groups or sections claiming to have been hurt or insulted,abuse the process by initiating multiple proceedings in different places; and, more impor-tantly, the protracted process itself is a punishment. Further, magistrates tend to mechani-cally summon defendants without first assessing whether the allegedly offending con-tent comes within one of the many exceptions to defamation found in the statute. Crimi-nal defamation should not be allowed to be an instrument in the hands of the state, espe-cially when the Code of Criminal Procedure gives public servants an unfair advantage byallowing the states prosecutors to stand in for them when they claim to have been de-

famed by the media or political opponents. Thanks to past verdicts of the Supreme Court,the government and its organs can no more file civil suits seeking damages for defama-tion, yet the pernicious law of criminal defamation is invoked to stifle free speech. Evenas the court deliberates the matter, the government ought to reconsider its stand andcome out against the criminal defamation law.

Manipurs dilemma

The fear of every state with a predominant indigenous population was summed upthus by the Naga leader A.Z. Phizo: Nagaland cannot accept the Indian excess popula-tion [as] our country is too small. Many of the recent exclusivist outbursts in the north-

eastern States, including in Manipur, can be attributed to such a fear of losing ancestralland to outsiders. Manipurs crisis intensified four months ago when its Congress-ma-

jority Legislative Assembly passed the Manipur Regulation of Visitors, Tenant and Mi-grant Workers Bill, 2015. It was opposed widely, including by womens and students


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groups, and even by a section of the ruling party. Eventually the Opposition became moreunited in demanding the withdrawal of the Bill, which failed to address their key concernof protecting the land rights of the original inhabitants. On July 14, the Bill was with-drawn by the Manipur government in a nod to the protesters demands. The united Op-position rather underscored the long-standing demand for the imposition of an InnerLine Permit system, as in a few other northeastern States. The ILP regime, introduced by

the British to protect tribal populations from encroachment into their areas, but later usedto advance commercial interests, involves a system akin to the issue of visas to Indiancitizens to enter a State of the Union.

The dilemma of the Indian state over the ILP is understandable. Can the Union af-ford to introduce a quasi-visa to its citizens to enter one State from another State? Thequestion could be complex for a central party that advocates the removal of all speed-

breakers when it comes to citizens access to travel and work in her own country. Thedilemma of Manipur is perhaps even more severe. The 2001 Census indicated the size ofthe migrant community was nearly as much as that of the dominant ethnic Meiteis, thus

bolstering the demand from Manipurs erudite civil society to impose curbs on inward

movement. But there has also been out-migration of the indigenous people. The demandis sought to be substantiated by citing many examples that indicate how Manipuris arelosing land to extractive non-Manipuri industries.

The leasing out of one-sixth of the total area of Manipur for oil exploration anddrilling to international oil majors, unthinkable in the other States, is one of many suchexamples. In this backdrop, a half-baked Bill was passed, that exacerbated the insecurity.The demand, though, is more legitimately a consequence of the hill-valley divide in theState and the congestion in the valley rather than any huge influx of outsiders. The situa-tion is thus complex but not out-of-control. But the State should ensure that alien-inves-tor-driven development does not disrobe its people. After all, they are supposed to ben-

efit from the growth generated out of its own domestic resources.

India, and the Talibans changing dynamics

The first officially acknowledged dialogue between the Taliban and the Afghan gov-ernment took place in Murree, Pakistan, on July 7. Among those attending were represen-tatives of Pakistan, China and the U.S. This comes eight months after Afghan PresidentAshraf Ghanis meeting with Gen. Raheel Sharif and the subsequent assurance that Paki-stan would help convince the Taliban to negotiate. The major outcome, according to Paki-stani media sources, is that the next round of talks is provisionally planned for August 15and 16 in Doha, Qatar. Another projected win was the reported endorsement by Talibanleader Mullah Omar on the Taliban website. Since Omar hasnt been seen in public foryears now, the authenticity of this approval is suspect. The Murree talks were significantin that they highlighted a shift in the stance of Talibans Qatar office, which has nowemerged as its official voice. While not formally repudiating the talks, the Qatar officemade a convoluted pronouncement indicating that future negotiations needed its impri-matur for any chance of success. This suggests that Murree was a preliminary round oftalks about talks, and is borne out by the announcement of the Doha round.

The Taliban is no longer the monolith that it was and many streams have emerged inthe movement. None of them are watertight compartments, allowing individuals and

factions to flow from one to another. Each has several factions that may or may not haveproblems with each other. There are problems between the Talibans political leader, AkhtarMohammad Mansour, considered close to the ISI, who favours negotiation, and AbdulQayum Zakir, Talibans military commander and former Guantanamo Bay detainee, who


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is opposed to any talks. Zakir insists that the Afghan government lacks legitimacy and itwas the U.S., the occupying power, which was in control. Zakirs position has been rein-forced after the Afghan government signed the Bilateral Security Agreement with theU.S., and he will oppose talks over the presence of foreign troops.

Yet another line of thought is the one that is open to talks, provided it is held on theirterms. This means two things: one, they are not comfortable with Pakistan leading thetalks and two, they see escalation in violence as a means to get to a vantage point beforediscussions begin. It is averse to a ceasefire, as that would allow the beleaguered unitygovernment to consolidate its control. This led to the rejection of the Afghan Ulemas callfor a Ramzan ceasefire. A third group is not openly supportive of talks, as this could drivesome extreme elements into joining movements like the Daesh, but it also wants someform of normalcy and will not oppose talks.

With pressure mounting on Pakistan, it had thrown its weight behind the latest roundof talks in Murree. Given the mounting international criticism that it had misled the AshrafGhani government, it had to display its earnestness and influence over the Taliban by

mediating talks on its soil.India has been on the sidelines because of its limited relationship with the Taliban.

Though India has never recognised the Taliban, what often goes unnoticed is that therewas limited interaction even during the Kandahar hijacking. An Indian delegation wasallowed in without visas and the External Affairs Minister entered into talks with repre-sentatives of a government it did not recognise. The point person for all of this was Talibanforeign minister Wakil Ahmed Muttawakil. However, times are changing. The perceptionthat talks with at least some of the Talibani elements might bring an end to the imbrogliois gaining ground in Afghanistan. This, coupled with the existence of several lines ofthought in Taliban, allows India to reconsider its position on Afghanistan. Considering

the social capital that India has built in Afghanistan, India might, at an appropriate mo-ment and in consultation with the Afghan government and other stakeholders, consideropening a channel to factions associated with Talibans Qatar office. Diplomacy is oftenabout picking the lesser evil to serve the national interest.

Breaking the ice and avoiding a refreeze

As Prime Minister Narendra Modi is discovering, somewhat to his discomfiture,managing relations with Pakistan is one thing but managing expectations about India-Pakistan relations is a different cup of tea, because the two often adopt divergent trajecto-ries. Every Indian Prime Minister, from Jawaharlal Nehru onwards, has had to deal with

this challenge. However, it has only become infinitely more difficult today with the In-dian media (and its Pakistani counterpart) seeking to convert every summit encounterinto a limited-overs cricket match. A diplomatic negotiation only succeeds if the outcomeis perceived by both sides as a win-win situation but this requires long-term planningand careful management. If either side makes it a zero sum game by firing up expecta-tions for a quick victory, the dialogue quickly flounders.

The five follow-on steps identified in the Joint Statement are precise and modest the National Security Advisers (NSA) are to discuss all issues connected to terror-ism; meetings between the chiefs of the Border Security Force and Pakistan Rangers andDirectors-General of Military Operations; releasing fishermen in each others custody;

facilitating religious tourism; and an agreement to discuss ways and means to expeditethe Mumbai 26/ 11 attack trial, including additional information like providing [Mumbaiattack mastermind Zaki-ur-Rehman Lakhvis] voice samples. Finally, Mr. Modi also ac-


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cepted Mr. Sharifs invitation to visit Pakistan in 2016 for the South Asian Association forRegional Cooperation (SAARC) summit. From all accounts, the meeting between the twoPrime Ministers developed positively. Mr. Modi had realised that not engaging Pakistanwas proving unhelpful. Having abruptly called off the Foreign Secretary-level talks lastAugust meant that he had to find a way to get a dialogue going. The SAARC summit inKathmandu last November came too soon after the cancellation of talks and the tit-for-tat

shelling across the Line of Control (LoC). After Indian Foreign Secretary S. Jaishankarsexploratory visit to Pakistan early this year and a couple of phone exchanges, the deckswere cleared. However, the old format could not be restored because it would signal

business as usual. The media and the Opposition would describe Mr. Modis policy asflip-flop or even worse, a climbdown under (god forbid) U.S. pressure! So, the resumeddialogue had to have its focus on tackling the menace of terrorism and for this, IndiasNSA Ajit Doval would be the most suitable person. Other issues such as religious tourismand the release of fishermen were humanitarian issues and would resonate well. Mr.Modi had emphasised the importance of regional diplomacy and even as he notchedup successful visits to Bhutan, Nepal, Sri Lanka and Bangladesh, he realised that resum-

ing a dialogue with Pakistan, and where he could set the agenda, was necessary for en-suring Indias leadership in the region and image as a responsible major power.

The Pakistani response was predictable. It pointed out that diplomatic phrases likeall outstanding issues and terrorism in all its forms included Kashmir and state spon-sored terrorism. India had sought the meeting (a victory for Pakistan), Mr. Modi hadcommitted to visit Pakistan for the SAARC summit (a victory for Pakistan), and addi-tional information was to be provided by India regarding the 2008 Mumbai attacks (avictory for Pakistan). However, the genie refused to go back into the bottle and the Paki-stan Army was unhappy. Eventually, three days later, Pakistans Foreign Policy and Secu-rity Adviser Sartaj Aziz took the stage to make it clear that the outcome at Ufa did not

mark the beginning of a new dialogue process, and that Kashmir tops the list of outstand-ing issues. For good measure, he added that Pakistan would continue to provide moral,diplomatic and political support to its Kashmiri brethren, the NSAs would discuss Indianinterference in Pakistan particularly in Balochistan, additional information would alsocover progress on the investigations into the Samjhauta Express bombings in 2007, andthere was no commitment on providing Lakhvis voice samples. The Pakistani HighCommissioners Iftar with Hurriyat leaders that had been postponed was resurrected asan Eid Milan event and recent LoC firings have again raised tensions. The chest-thump-ing protagonists on either side examined in terms of protocol how many steps Mr. Modiand Mr. Sharif each walked to greet the other. The Ufa moment had become an ouch

moment for both sides. Instead of a win-win, both sides retired hurt and sulking.Neighbourhood diplomacy for a large country like India needs a lighter touch, and

far more attention to managing expectations than has been in evidence during the last 12months. We also need to understand that as the larger power, the Indian media resonatesloudly in the region, often reflecting an insensitivity which generates a backlash. Mr.Modis media team has yet to understand this. There will be more engagements withPakistan, and at different levels, but New Delhi will have to change its tone to ensure thatwell-crafted diplomatic initiatives do not get reduced to a farce. From Mr. Narasimha Raoonwards, I have personally witnessed how he and his successors and their senior col-leagues, used to keep key political leaders, including the Opposition, fully briefed; in

parallel, senior officials used to provide background briefings to retired officials and for-eign policy commentators so that expectations could be managed in terms of media pro-jection. This ensured that both the pace and the outcome of the dialogue was kept undercontrol, with an eye to the domestic political environment while taking into account the


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What you will Get (?)

General Studies (Paper I, II, III & IV) Online 100 % Reading Material of the

Syllabus (Which can be saved easily)

Slides (For Giving Summary of Each Topics)

Categorized Unit and Sub-Unit Wise Question Papers of General Studies

Current General Studies Magazine (Indispensable Magazine for General Studies)

Daily Answer Writing Challenge for IAS Mains Contemporary Issues

It is full of tips on areas of emphasis, caution while reading and writing , how to

write the answer (?) .

Model Test Question Paper for General Studies - I, II, III and IV for Mains Exam

2015

Online and Telephonic interaction with the course director, and continuous

evaluation through a regular online writing session in every chapter and topic.

http://iasexamportal.com/civilservices/courses/ias-mains-gs-combo
http://iasexamportal.com/civilservices/current-affairs/ias-mains-general-studieshttp://iasexamportal.com/civilservices/current-affairs/ias-mains-general-studieshttp://iasexamportal.com/civilservices/answer-writing-challenge/ias-mains-gs/26-november-2014http://iasexamportal.com/civilservices/courses/ias-mains-gs-combohttp://iasexamportal.com/civilservices/courses/ias-mains-gs-combohttp://iasexamportal.com/civilservices/courses/ias-mains-gs-combohttp://iasexamportal.com/civilservices/answer-writing-challenge/ias-mains-gs/26-november-2014http://iasexamportal.com/civilservices/current-affairs/ias-mains-general-studies


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larger games being played on the geopolitical canvas. After last August, Mr. Modi under-stood the need for a dialogue with Pakistan. Hopefully, after Ufa, he will also understandthe need to manage it in a more productive manner.

Stimulated economy, sluggish investmentsWhile there are signs that economic growth is reviving, the concern is that invest-

ments are not as forthcoming as expected. During the last year or so, the government hasput in place a comprehensive set of measures to restore investor sentiments, ranging acrossthe tax regime, ease of doing business, Foreign Direct Investment limits, and administra-tive and environmental clearances. A number of large-scale initiatives have been intro-duced to act as magnets for investments, including Make in India, the Smart City missi

Vol 92 3rd September 2015 to 9th September 2015

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Transcript of Vol 92 3rd September 2015 to 9th September 2015