Persons in News

Indias

Prime

Minister Dr

Manmohan

Singh and

Congress

President Sonia

Gandhi have been named among the top 20 most powerful persons in the world by Forbesmagazine in its annual power rankings which placed the U.S. President Barack Obama as number one for a second year in a row. Indias richest businessman Reliance Industries chairman Mukesh Ambani and and

ArcelorMittal CEO Lakshmi Mittal also feature in the list that comprises 71 mighty heads of state, CEOs, entrepreneurs and philanthropists who truly run and shape the world of 7.1 billion people. Ms Gandhi dropped a notch from last years list and ranks at number 12 this year, ahead of Chinese Vice Premier Li Keqiang and French President Francois Hollande. Coming in at the 20th spot is Dr Singh, the Oxford and Cambridge-educated economist who is the architect of Indias economic reforms. He had ranked 19th in the list last year. Mr Ambani, owner of the worlds most expensive private residence, ranks 37th in the list. Forbes said the petrochemical billionaire is Indias richest and Reliance Industries is the nations most valuable company. Mr Mittal, ranked 47th in the most powerful people list, has a net-worth of U.S.$16 billion but also has lots of headaches, including S&P and Moody downgrades of his companys debt to junk status.

The centre-left coalition of Victor Ponta, Romanias prime minister, won a decisive victory in parliamentary elections. In spite of his big win it is uncertain whetherTraian Basescu, the president, will reappoint Mr Ponta, his arch-rival, to office.

Nearly four years after the Mumbai terror attack, Pakistani terrorist Ajmal Kasab, the lone person caught alive during the 26/11 attacks on Mumbai in 2008, was hanged to death at the Yervada Jail in Pune. Mr Kasabs mercy plea was rejected by President Pranab Mukherjee on 5th November. The hanging was done very secretly. After the mercy petition was rejected by Rashtrapati Bhawan, the Lashkar-e-Toiba operative was shifted from high-security Arthur Road Jail cell in Mumbai to the Pune jail two days before the hanging. Since his arrest in 2008, Mr Kasab was kept in a bullet proof cell in Mumbais Arthur Road jail. He was sentenced to death by the Bombay High Court in October last year. He was convicted on charges ranging from treason to waging war against India. He then appealed to the Supreme Court, which ruled against him in August 2012. His mercy petition was filed first with the Maharashtra Home Ministry, which rejected it in

September, and forwarded it to the Union Home Ministry. Then in October, the Home Ministry recommended that the President reject his plea. A total of 166 people were killed in the 26/11 attacks in 2008.

Legendary sitar maestro Pandit Ravi Shankar, who spearheaded the worldwide spread of Indian music and had a major influence on Western musicians like The Beatles, died in San Diego, U.S. at the age of 92. A recipient of Bharat Ratna in 1992, Pandit Shankar maintained residences in both India and the United States. He is survived by his wife Sukanya; daughter Norah Jones; daughter Anoushka Shankar Wright and husband Joe Wright; three grandchildren, and four great-grandchildren. A three-time Grammy Award winner, Pandit Shankar last performed in California in the first week of November 2012 along with his daughter Anoushka Shankar. He has also been nominated for the 2013 Grammy Awards for his album The Living Room Sessions Part-1 and was pitted against daughter Anoushka in the same category. A Bengali Brahmin, he was born Robindra Shankar on April 7, 1920 in Varanasi, the youngest of four brothers, and spent his first 10 years in relative poverty, brought up by his mother. He was almost eight before he met his absent father, a globe-trotting lawyer, philosopher, writer and former minister to the Maharaja of Jhalawar. In 1930, his eldest brother Uday Shankar uprooted the family to Paris, and over the next eight years Pandit Shankar enjoyed the limelight in Udays troupe, which toured the world introducing Europeans and Americans to Indian classical and folk dance. As a performer, composer and teacher, Pandit Shankar was an Indian classical artist of the highest rank, and he spearheaded the worldwide spread of Indian music and culture. Pandit Shankar achieved worldwide fame in the 1960s when he was embraced by the Western counterculture. Through his influence on his great friend George Harrison (of the Beatles), and appearances at the Monterey and Woodstock festivals and the Concert for Bangladesh, he became a household name in the West, the first Indian musician to do so.

Egyptian President Mohammed Mursi has assumed sweeping powers, drawing flak that he is acting like a new pharaoh and is endangering the gains of the popular uprising which ousted Hosni Mubaraks dictatorial regime. Mr Mursi made the constitutional declaration that granted him far-reaching powers and also ordered retrials of officials involved in the killing of protesters during the 2011 mass uprising against the Mubarak regime. The constitutional declaration has sparked a fierce debate in Egypt, with supporters calling it revolutionary and detractors slamming the

sweeping powers it grants Egypts presidency as a coup. The opposition called for nationwide protests. The declaration also said no court can dissolve the Constituent Assembly, which is drawing up a new constitution. The Constituent Assemblys timeline for drafting the new constitution has also been extended by two months. Mr Mursi also sacked the chief prosecutor and ordered the re-trial of people accused of attacking protesters when Mr Mubarak held office. According to the declaration, all investigations into the killing of protesters or the use of violence against them will be re-conducted. Trials of those accused will be re-held. According to the declaration, all constitutional declarations, laws and decrees made since Mr Mursi assumed power on 30 June 2012 cannot be appealed or cancelled by any individual, or political or governmental body. The president is authorised to take any measures he sees fit in order to preserve the revolution, to preserve national unity or to safeguard national security. The essence of the declaration guards decisions of Mr Mursi against annulment by the judiciary and gives him almost autocratic rule. Indias former Prime Minister Inder Kumar Gujral passed away after prolonged illness. Mr Gujral, 92, was on dialysis for over a year and suffered a serious chest infection some days ago. He served as the 12th Prime Minister of India from April 1997 to March 1998. He was the second PM to from the Rajya Sabha, the first being his immediate predecessor H. D. Deve Gowda

A Pakistani government committee has endorsed the renaming of a roundabout in Lahore after freedom fighter Bhagat Singh despite stiff opposition from extremist groups like the Jamaat-ud-Dawah (JuD). The City District Government of Lahore had put on hold a move to rename Shadman Chowk after Bhagat Singh due to objections from hardline groups like the JuD and Jamaat-e-Islami and a section of local residents. The matter was then referred to Dilkash Lahore, a committee set up to revitalise and beautify Lahore and to finalise new names for squares, roads and intersections after assessing their historical significant before the creation of Pakistan. The committee finally rejected all objections and asked the authorities to notify Bhagat Singh Chowk as the new name of the roundabout without any further delay. Members of the Dilkash Lahore Committee, while discussing the renaming of Shadman Chowk after Bhagat Singh, highlighted the importance of the place where the freedom fighter was hanged by the British. Bhagat Singh was hanged in March 1931 in the erstwhile Lahore Jail, which stood at the spot where the roundabout was built later.

Kweku Adoboli, a former trader at UBS in London, was sentenced to seven years in prison for fraud. The rogue traders unauthorised gamble, which was disclosed in

September 2011, cost the Swiss bank U.S.$2.3 billion and led to the resignation of its then chief executive, Oswald Grbel.

Shiv Sena patriarch Bal Thackeray, who could bring Mumbai to a standstill, passed away after a prolonged illness. Born on January 23, 1926, in Pune, into the family of progressive socialist Keshav Thackeray aka Prabodhankar, Bal Thackeray started off as cartoonist with Free Press Journal in Mumbai. Soon, he launched a weekly magazine called Marmik, that was predominantly satirical and full of cartoons. In 1966, he launched the Shiv Sena, a party that espoused the son-of-the-soil ideology. In February 1969, his party took up the Maharashtra-Karnataka border dispute and Mr Thackeray, along with several others, were imprisoned the only time he found himself behind bars. In 1975, he found himself in political wilderness for supporting the Emergency. But he soon bounced back and forged an alliance with the Bharatiya Janata Party. In 1999, he was banned from voting or contesting elections; however, the ban was lifted after six years. Despite being the chief of one of Mumbais most powerful political organisations, he always played the king-maker in Maharashtra, as well as the national arena, as Shiv Sena MPs joined the BJP-led National Democratic Alliance while voting for presidential candidates propped up by the Congress. In 2006, he received a jolt when his nephew Raj, whom he had personally groomed, left the Shiv Sena to float a party of his own, the Maharashtra Navnirman Sena (MNS). However, Bal Thackeray reaffirmed the peoples faith in his political acumen this year, trouncing almost all political parties in the Mumbai civic elections. For the past one year, Mr Thackeray was suffering from lung ailment and pancreatic complications.

Senior IPS officer Alok Joshi will be the new chief of Research and Analysis Wing (RAW) and Syed Asif Ibrahim will be the next Director of Intelligence Bureau (IB). The Appointments Committee of the Cabinet (ACC) headed by Prime Minister Dr Manmohan Singh cleared the name of Mr Joshi, a 1976 batch officer from Haryana cadre, to succeed Sajeev Tripathi as an organisation entrusted with the task of gathering external intelligence. Mr Joshi has served the Intelligence Bureau and Haryana Police with key operations in Nepal and Pakistan to his credit. Another contender for the RAW post was Amitabh Mathur, a 1977 batch IPS officer, who has been moved to Aviation Research Centre (ARC), an organisation which forms part of RAW and is entrusted with gathering of imagery intelligence, Aerial surveillance, monitoring of borders and photo reconnaissance flights.

59-year-old Mr Ibrahim, a 1977 batch IPS officer from Madhya Pradesh cadre, succeeds Nehchal Sandhu. He will have a fixed tenure of two years beginning 1 January 2013.

Senior IPS officer Ranjit Sinha has been appointed as the Director of the Central Bureau of Investigation (CBI). A 1974-batch Bihar cadre officer, Mr Sinha, who is also holding charge as Director General Indo-Tibetan Border Police, succeeds A. P. Singh who retired on November 30.

Places in News
A rebel army in eastern Congo, known as the M23, retreated from Goma, the largest city in the Democratic Republic of Congo (DRC), 11 days after capturing it. The M23 were under pressure from Rwanda and Uganda, neighbouring countries that had been backing them. The M23, which is thought to be allied to Rwanda, captured Goma, a city in the east of Congo on the border with Rwanda. A UN force mandated to protect civilians was unable to stop it. Congos President, Joseph Kabila, flew toUganda to discuss the crisis with President Yoweri Museveni and his Rwandan counterpart, Paul Kagame.

John Mahama has been reelected as the President of Ghana. Ghana, one of the worlds fastest-growing economies, is regarded as one of Africas most stable democracies.

Awards & Honours

Pt Ravi Shankar to receive Lifetime Achievement Grammy Award

Sitar maestro Pandit Ravi Shankar will be honoured with a Grammy Lifetime Achievement Award posthumously, organisers of the Recording Academy announced. He would be the first Indian to get the prestigious award. The award would be presented at the 55th Grammy Awards ceremony in Los Angeles. 92-year-old Mr Shankar, a three-time Grammy winner, died after undergoing a heartvalve replacement surgery at the Scripps Memorial Hospital in La Jolla, California. The decision to honour [Pandit] Ravi [Shankar] was made before his death. He was personally notified by phone by our President/CEO Neil Portnow a week before his death, the Grammy spokeswoman said after the award was announced. In the past, the Lifetime Achievement Award has been bestowed on icons like Elvis Presley, Frank Sinatra, The Rolling Stones, Paul McCartney, Michael Jackson, Julie Andrews, and Glen Campbell.

Web Ratna Awards for AIR & DRDO

The National Institute of Open Schooling, AIR portal for news dissemination, and DRDOs website have been awarded for outstanding content at the Web Ratna Award 2012. The awards were presented by Minister of Communication and IT, Kapil Sibal in presence of Ministers of State for Communication and IT Milind Deora and Kruparani Killi. Mr Sibal said that the awards like this will motivate developers. The Web Ratna Awards, now in their second year, have been instituted under the ambit of the national portal of India by National Informatics Centre to promote exemplary initiatives in e-governance using the medium of World Wide Web.

Indira Gandhi Prize for Lula Da Silva

President Pranab Mukherjee conferred the Indira Gandhi Prize for Peace, Disarmament and Development on former President of the Federative Republic of Brazil, Luiz Inacio Lula da Silva. The President Mr Mukherjee stated that this prestigious award celebrates the legacy of the former Prime Minister of India, Indira Gandhi, as an untiring crusader for global peace, universal disarmament and a new international economic order. The prize has been awarded to Mr da Silva for his contribution to the cause of eliminating hunger and promoting inclusive growth in Brazil, for his advocacy of stronger ties among the developing economies and for his signal contribution to the cause of the India-Brazil partnership.

Sports

CRICKET England in India Test Series Result: England beat India 2-1 to win the 4-match series. Player of the Series: Alastair Cook (England) New Zealand in Sri Lanka ODI Series Result: SL won the 5-match series 3-0, with two matches abandoned. Player of the Series: BJ Watling (NZL) Test Series Result: NZL & SL draw the 2-match series 1-1. Player of the Series: Rangana Herath (Sri Lanka) South Africa in Australia Test Series Result: SA beat Aus 1-0 to win the 3-match series. Player of the Series: Michael Clarke (Australia) West Indies in Bangladesh ODI Series Result: Bangladesh won the 5-match series 3-2. Player of the Series: Mushifqur Rahim (Bangladesh)

Test Series Result: West Indies blank Bangladesh 2-0 in the two-match series. Player of the Series: Shivnarine Chanderpaul (West Indies) MOTORRACING Brazilian Grand Prix, Sao Paulo Winner: Jenson Button (Great Britain/McLaren-Mercedes) Second: Fernando Alonso (Spain/Ferrari) Third: Felipe Massa (Brazil/Ferrari) U.S. Grand Prix, Austin (Texas) Winner: Lewis Hamilton (Great Britain/McLaren-Mercedes) Second: Sebastian Vettel (Germany/Red Bull-Renault) Third: Fernando Alonso (Spain/Ferrari) TENNIS Barclays ATP World Tour Finals, London Winner: Novak Djokovic (Serbia) Runner-up: Roger Federer (Switzerland) Davis Cup World Groups Finals, Prague Winner: Czech Republic Runner-up: Spain Sebastian Vettel of Germany and Team Red Bull-Renault is the winner of the 2012 F1 World Championship, his third consecutive title.

Miscellaneous-1

The U.S. Senate has unanimously passed a sweeping U.S.$631 billion defence bill, which issues new sanctions against Iran, changes the detention policy of American citizens and seeks quick action for withdrawal of American combat troops from Afghanistan. The Defence Authorisation Bill passed by 98-0 votes by the U.S. Senate would require the Chairman of the U.S. Joint Chiefs of Staff to submit to Congress assessment of the risk to the U.S. mission and security interests associated with a reduction of American forces in Afghanistan. In view of the attack on the U.S. Consulate in Benghazi in Libya, the defence spending bill also authorises an increase of up to 1,000 additional Marine Corps personnel assigned to the Marine Corps Embassy Security Group. It also provides the resources, training, equipment and authorities necessary for our military to succeed inAfghanistan and provides continued support to the Afghanistan National Security Forces as they assume increased responsibility throughout Afghanistan.

The U.S. House of Representatives has already passed the Defence Authorisation bill. Since there are differences in the two versions of the bill, it now goes to the HouseSenate Conference Committee, which needs to sort out the differences. The bill would provide U.S.$526 billion for the base defence budget, U.S.$17 billion for defence programmes in the Energy Department, and U.S.$88 billion for the war inAfghanistan. It also added new sanctions on Irans energy and shipping sectors in a fresh bid to scuttle its nuclear ambitions. The White House has threatened to veto the bill, if a series of measures, including restrictions on detainee transfers to foreign countries in the House version of the bill, make it to the final bill.

North Korea successfully launched a long-range rocket in defiance of UN sanctions threats over what Pyongyangs critics have condemned as a disguised ballistic missile test. North Korea said the three-stage rocket, which Pyongyang insists was solely aimed at placing a satellite in orbit, had achieved all its objectives. The second version of the Kwangmyongsong-3 satellite was launched from the Sohae Space Centre. The Norths decision to launch the rocket in winter had led analysts to suggest a political imperative behind the timing, which may have overruled technical considerations. New leader Kim Jong-Un is believed to be extremely keen that the launch fell around the first anniversary of the death of his father and former leader Kim Jong-Il on December 17.

The Supreme Court issued notices to the Centre, Delhi, Maharashtra and West Bengal governments on the Cyber Law 66 (A) while hearing a Public Interest Litgation (PIL) on amending the Information Technology Act. The Apex Court also sought explanation from Maharashtra government on the arrest of two girls for posting comments on Facebook. Attorney General G. Vahanvati told the Court that the government will come out with guidelines to ensure that section 66A of IT Act is not misused. This follows the government amending the Act in the wake of the uproar over the arrests of two girls in Maharashtra who questioned in social media the rationale for bandh after Shiv Sena chief Bal Thackerays demise. The government issued guidelines that state approval from an officer of DCP level at metro cities and IG level in other places will have to be sought before registering complaints under the controversial section. The SC also questioned the misuse of Section 41 of the CrPC that empowers the police to arrest any person without an order from the magistrate and without a warrant in the event that the offence involved is a cognizable offence. Section 156 (1) empowers the investigation by the police into a cognizable offence without an order of a magistrate.

Voicing concern over recent incidents of people being arrested for posting alleged offensive messages on websites, the Supreme Court agreed to hear a PIL seeking amendment to the Information Technology Act. A bench headed by Chief Justice Altamas Kabir said that it was considering taking up suo motu cognisance of recent incidents and wondered why nobody had so far challenged the particular provision of the IT Act. Taking the case on urgent basis, the bench agreed to hear the PIL filed by a Delhi student Shreya Singhal.

ceasefire,

mediated

mainly

by Egypt with U.S. support,

was

accepted

by Israel and Hamas, the radical Palestinian group that rules Gaza, after a weeklong war between the two adversaries that had cost the lives of five Israelis and at least 140 Palestinians, most of them civilians. Hamas agreed to stop firing rockets at Israel, which said it would lift the siege of Gaza.

Miscellaneous-2

Palestine becomes UN Non-Member State The UN General Assembly has voted overwhelmingly to grant Palestine a non-member observer state status at the world body. The vote represents a long-sought victory for the Palestinians but a diplomatic defeat for Israel and the US, two of the nine countries which voted against the upgrade. In all, 138 countries voted in favour and 41 others abstained. The new status is an indirect recognition of the Palestinians claims on statehood in the West Bank, East Jerusalem, and Gaza Strip. It allows them to join a number of UN agencies, as well as the International Criminal Court (ICC). Mahmoud Abbas, the president of the Palestinian Authority in the West Bank, addressed the General Assembly, saying that Palestinians were not seeking to delegitimize Israel, but to affirm the legitimacy of Palestine as a state. He referenced the recent Israeli assault on Gaza, saying that Palestine had come to the UN at a time when Palestinians were still tending to [their] wounds and still burying [their] beloved martyrs of children, women and men who have fallen victim to the latest Israeli aggression. What permits the Israeli government to blatantly continue with its aggressive policies and the perpetration of war crimes stems from its conviction that it is above the law and that it has immunity from accountability and [the] consequences [...] The moment has arrived for the world to say clearly: Enough of aggression, settlements and occupation. The General Assembly is called upon today to issue a birth certificate of the reality of the State of Palestine. The moment has arrived for the world to say clearly: Enough of aggression, settlements and occupation.

The U.S. Ambassador to the United Nations Susan Rice branded the move counterproductive, and the state department warned the status change could lead to a reduction of the U.S. economic support for the Palestinians. Todays unfortunate and counter-productive resolution places further obstacles in the path to peace. That is why the United States voted against it, Ms Rice said. The backers of todays resolution say they seek functioning, independent Palestinian state at peace with Israel so do we. But we have long been clear that the only way to establish such a Palestinian state and resolve all permanent status issues is through the crucial if painful work of direct negotiations between the parties. Long after the votes have been cast, long after the speeches have been forgotten, it is the Palestinians and the Israelis who must still talk to each other and listen to each other. Other countries that voted against the upgrade include Canada,

the Czech Republic, Marshall Islands, Micronesia, Nauru, Palau, and Panama. Meanwhile, Ban Ki-moon, the UN secretary-general, renewed his call for the resumption of direct negotiations between Israel and Palestine. Todays vote underscores the urgency of the resumption of meaningful negotiations, Mr Ban said. My position has been consistent all along. I believe that the Palestinians have a legitimate right to their own independent state. I believe that Israel has the right to live in peace and security with its neighbors. There is no substitute for negotiations to that end. Israel said that the comments made by Mr Abbas make it more difficult for it to negotiate with Palestine. Instead of speaking the language of reconciliation, we had libelous charge after libelous charge against the Israeli people, the Israel Government spokesperson said. He called a distortion of history how Mr Abbas characterised the UN resolution calling for a two-state solution exactly 65 years ago. The way he talked about it. He forgot the most important thing. It was the Israeli side, the Jewish side that accepted two states for two people, the spokesperson said.

India ranks 94th in Corruption Perception Index ratings Country Rank 1 1 1 4 5 6 7 7 9 Country / Territory Denmark Finland New Zealand Sweden Singapore Switzerland Australia Norway Canada CPI 2012 Score 90 90 90 88 87 86 85 85 84

Netherlands

84

Indias image on tackling corruption has not improved with Transparency Internationals Corruption Perception Index (CPI) placing it at 94th rank out of 176 nations this year. Though India was ranked at 95th position last year, the international watchdog said it has started evaluating the positions through a different formula beginning this year and hence this cannot be compared to last years ranking. However, the last years rank of 95 would be 96 if it is calculated using the new methodology which implies there was a slight improvement in the index. This year, India has a score of 36 out of 100 on a scale from 0 (highly corrupt) to 100 (very clean) which is a result of an average of 10 studies including World Banks Country Performance and Institutional Assessment and Global Insight Country Risk Ratings. India was ranked 72 among 180 countries for the first time in 2007 and since then the countrys rankings have been showing a decline. While India was placed at 87 in 2010, the position was 95 in 2011. This year, India is ranked below neighbouring countries like Sri Lanka and China, while Afghanistan, Iran, Nepal, Pakistan and Bangladesh fared much worse than India when it came to corruption in public sector undertakings. Sri Lanka, which is slowly limping back to normalcy after a three-decade civil war, is ranked at 79 while Chinais ranked at 80. Denmark is placed at the top spot with a score of 90 while Finland and New

Zealand follow very closely. Countries that occupy the bottom ranks in the index areMyanmar, Sudan, Afghanistan, Somalia, and North Korea.

Deadly shooting spree at U.S. school leaves 20 children dead A young gunman killed his mother and 25 other people, including 20 children, when he went on a shooting rampage inside a U.S. school, before turning the gun on himself, in one of the deadliest such incidents witnessed in the U.S. The incident occurred at the Sandy Hook Elementary School in Newtown city of Connecticut state. The shooter whose act of firing indiscriminately at students and staff left

the Connecticut city of Newton shocked and paralyzed was identified as 20-year-old Adam Lanza. According to the New York Times, Adam Lanzas mother was a teacher at the school and he walked up to her classroom loaded with two 9mm handguns and wearing all black, and opened fire, killing her and 25 other adults and children. He first shot and killed his mother and then shot 18 students in the classroom before killing himself inside the school. Appearing shaken by the death of 20 children in one of the deadliest school shooting in American history, the U.S. President Barack Obama choked up several times as he said our hearts are broken today before the White House Press Corps. Our hearts are

broken today for the parents and grandparents, sisters and brothers of these little children, and for the families of the adults who were lost, Mr Obama said. Our hearts are broken for the parents of the survivors, as well, for as blessed as they are to have their children home tonight, they know that their childrens innocence has been torn away from them too early and there are no words that will ease their pain, he said.

India-China resolve to deepen engagement India and China pledged to deepen economic and commercial ties and create

environment for promoting investment to the mutual benefit of the two nations in New Delhi during a day-long 2nd India-China Strategic Economic Dialogue. As many 11 agreements, entailing investment of U.S.$5.2 billion, were inked in New Delhi between the two countries. With a view to promote greater economic and commercial engagement, the two sides have agreed to improve trade and investment environment, remove market barriers and deepen business co-operation, said the minutes of the meeting between Planning Commission Deputy Chairman Montek Singh Ahluwalia and Chinas National Development and Reform Commission Zhang Ping. India and China also agreed to enhance transportation links, encourage greater bilateral investments and work toward achieving a more balanced and sustainable bilateral trade. Mr Ahluwalia said that the message that we are getting from them is that they would like to see deepening of co-operation. He also expressed the confidence that the dialogue will look at measures to increase investment interest and activity through mutual co-operation. He said that India and China would look at the possibility of initiating pilot projects in different sectors such as water treatment. The bilateral trade between the two countries has shot up from U.S.$3 billion in 2000 to U.S.$74 billion currently. On the major issues of security and widening India-China trade deficit, Mr Ahluwalia said there was no discussion on these issues during the dialogue. About government being cautious about investment by Chinese telecom companies in India, he said, Security issues are relevant not just for Chinese investments. In certain areas, the country would want to have security in infrastructure and telecom is one of them. This is not the issue which came up for discussion. They did not raise this issue. Mr Ahluwalia also revealed that India raised the issue of after sale service of the Chinese equipment. However, he admitted that Chinese equipment is very competitive and their financing is also very good. The 3rd India-China Strategic Economic Dialogue will be held next year in Beijing

India plans for missile defence shield installation

Indias plans to set up a missile defence shield in Delhi in next two years moved a step further with the successful test-firing of an interceptor missile off the coast ofOdisha. As part of the exercise, the Defence Research and Development Organisation (DRDO) testfired a supersonic interceptor missile which destroyed a hostile ballistic missile off the Odisha coast. DRDO is ready to deploy the system in the NCR region by 2014. The hostile ballistic missile, a modified surface- to-surface Prithvi, mimicking an incoming enemy weapon, first lifted off from a mobile launcher at the Integrated Test Range (ITR) at Chandipuron-Sea, about 15 km from Balasore, Odisha. Within about four minutes, the interceptor, Advanced Air Defence (AAD) missile positioned at Wheeler Island, about 70 km from Chandipur, after getting signals from tracking radars roared through its trajectory to destroy the incoming missile mid-air in an endo-atmospheric altitude. A simulated test was also done to check the system and it was also successful. The hostile missile was simulated to be a ballistic missile fired from the range of 1,500 km. The interceptor missile is a 7.5-metre-long single-stage solid rocket propelled guided missile equipped with a navigation system, a hi-tech computer and an electromechanical activator.

Kyoto Protocol extended to 2020 After desperate attempts by the host country Qatar to save the talks, the UN Conference on Climate Change has agreed to extend the life of the Kyoto Protocol, which controls the greenhouse gas emissions of rich countries, through 2020. As the talks went into an extra day and the President of the Conference of the Parties made a passionate plea to strike some deal before they pack up, nearly 200 participating countries agreed to keep the Kyoto Protocol alive for the next eight years. The historic pact, which was agreed to by countries in 1997, expires this year-end. However, the new agreement only covers developed nations whose share of world greenhouse gas emissions is less than 15 per cent. The protocol locks in only developed nations, excluding major developing polluters such as China and India, as well as the U.S. which refuses to ratify it. The Protocol got extension with the European Union, Australia, Switzerland, and eight other industrialised nations signing up for binding emission cuts by 2020. Conference Chairman Abdullah bin Hamad al-Attiyah (Qatar), who begged to the countries to offer something out of the conference, termed the deal as the Doha Climate Gateway. The deal also includes agreement to scale up funding to help poor countries deal with global warming and convert to planet-friendlier energy sources. The 12-day

meeting in Doha also aimed to adopt in 2015 a wider treaty that would apply to all countries and eventually replace the Kyoto Protocol. The U.S. rejected the idea of equity by refusing to associate itself to any new agreement that is under the Convention. Russia outrightly rejected proposal while G77 and China, BASIC groups support Doha outcome. Amid Russias continued protests against his decision, President Al-Attiyah said, It was my sense that the decision reflects the will of party as a whole to resolveDoha. The developments came after negotiators worked through intrinsic details and language that could be acceptable to all. It was a long day, said Mr Al-Attiyah, summing up the sentiment of the tired and weary negotiators, some of whom were seen catching small naps in the plenary as they waited for the dissent-hit slow proceedings to move. While everyone is unhappy but everyone wants an agreement (nevertheless). I didnt want to open the Pandoras Box by opening the entire texts again because we will never finish. I am not carrying a magic trick, but please help me, this is at least a good text, we cannot find a text satisfying everyone. I beg you to help the President, this is my final begging to accept what we can offer, he told the delegates. The 12 days of talks saw bitter wrangling over the poor countries insistence that the rich nations make substantial pledges to cut greenhouse gases and finance mitigation and adaptation efforts in the poor countries that have not historically contributed to global warming but are presently the most vulnerable. The talks failed to deliver increased cuts to carbon pollution, nor did they provide any credible pathway to U.S.$100 billion per year in finance by 2020 to help the poorest countries deal with climate change, the 700 NGOs, who are members of Climate Action Network-International, said in a statement while reacting on the deal. Two weeks of negotiations have not altered that path and that politicians need to reflect the consensus around climate change through funds, targets and effective action, said Greenpeace International executive director Kumi Naidoo. The WWF head of delegation, Tasneem Essop, said Doha was supposed to be an important element in setting up for a fair, ambitious and binding deal in 2015 and therefore needed to rebuild trust and instill equity. These talks have failed the climate and they have failed developing nations, Ms Essop said. U.S. imposes record U.S.$1.9 bn penalty on HSBC for illegal practices The U.S. has imposed a U.S.$1.9 billion fine on the British bank HSBC as part of settlement to end allegations of money laundering. This is the largest penalty ever imposed on a bank.

American authorities cited astonishing dysfunction at the British bank HSBC and said that it had helped Mexican drug traffickers, Iran, Libya and others under U.S.suspicion or sanctions to move money around the world. The U.S. stopped short of charging executives, citing the banks immediate, full cooperation and the damage that an assault on the company might cause on economies and people, including thousands who would lose jobs if the bank collapsed. The settlement avoided a legal battle that could have further savaged the banks reputation and undermined confidence in the banking system. HSBC does business in almost 80 countries, so many that it calls itself the worlds local bank. The U.S. Justice Department cited a stunning, stunning failure by the bank to monitor itself. It said that it enabled countries subject to the U.S. sanctions Cuba,Iran, Libya, Myanmar, and Sudan to move about U.S.$660 million in prohibited transactions through the U.S. financial institutions, including HSBC, from the mid-1990s through September 2006. The U.S. Justice Department noted that HSBC officers in the United States had warned counterparts at the parent company that efforts to hide where financial transactions originated would expose the bank to sanctions, but the protests were ignored. In fact, HSBC even instructed an Iranian bank in one instance how to format messages so that its financial transactions would not be blocked, the U.S. Justice Department said. The U.S. Justice Department said that the bank let over U.S.$200 trillion between 2006 and 2009 slip through relatively unmonitored, including more than U.S.$670 billion in wire transfers from HSBC Mexico, making it a favorite of drug cartels and money launderers. HSBC Bank USA at the time rated Mexico in its lowest risk category. Before the government stepped in, HSBC used only one or two compliance officers to monitor its banknotes business the wholesale buying and selling of bulk cash around the world even though the business is highly vulnerable to money launderers. Despite the high risk, discrepancies and suspicious activity in banknotes transactions were not reported from July 2006 to July 2009, when the banks compliance staffing was at its worst. In March 2008, when 13,000 to 15,000 suspicious wire alerts were generated per month by such transactions, only four employees were around to review them, according to court papers. HSBC Bank USA now has 430 employees reviewing suspicious wire alerts. HSBC CEO, Stuart Gulliver, said that the bank accepted responsibility for its mistakes and was profoundly sorry, adding that the HSBC of today is a fundamentally different organization from the one that made those mistakes. The U.S. Justice Department said the banks blatant failure to implement proper antimoney laundering controls permitted drug organizations in Mexico to launder at least

U.S.$881 million in drug proceeds through the U.S. financial system. Court documents show that HSBC expanded its banking links with Mexico in 2002 when it acquired Mexicos fifth-largest bank with approximately 1,400 branches and 6 million customers. Besides forfeiting U.S.$1.25 billion in its deal with the government, HSBC also agreed to pay U.S.$665 million in civil penalties, including U.S.$500 million to the Office of the Comptroller of the Currency and U.S.$165 million to the Federal Reserve. The U.S. said the United Kingdoms Financial Services Authority was pursuing a separate action. It was not the first time that the bank has gotten in trouble with American authorities. In July, a U.S. Senate subcommittee on investigations criticized HSBC for lax controls that allowed money laundering. Money laundering by banks has become a target for U.S. law enforcement. Since 2009, Credit Suisse, Barclays, Lloyds and ING have all paid big settlements related to allegations that they moved money for people or companies under U.S. sanctions. The money-laundering affair is the latest scandal to strike the banks since the 2008 financial crisis. Standard Chartered, another British bank, signed an agreement with New

York regulators recently to settle a money-laundering investigation involving Iran with a U.S.$340 million payment. HSBC should easily be able to absorb the U.S.$1.9 billion penalty; it turned a profit of U.S.$17 billion last year alone.

Unemployment rises in Euro Area The Euro Area (EA17) seasonally-adjusted unemployment rate was 11.7% in October 2012, up from 11.6% in September. The EU27 unemployment rate was 10.7% in October 2012, up from 10.6% in September. In both zones, rates have risen markedly compared with October 2011, when they were 10.4% and 9.9% respectively. These figures are published by Eurostat, the statistical office of the European Union. Eurostat estimates that 25.913 million men and women in the EU27, of whom 18.703 million were in the euro area, were unemployed in October 2012. Compared with September 2012, the number of persons unemployed increased by 2.04 lakh in the EU27 and by 1.73 lakh in the EA. Compared with October 2011, unemployment rose by 2.160 million in the EU27 and by 2.174 million in the euro area. Among the Member States, the lowest unemployment rates were recorded

in Austria (4.3%), Luxembourg (5.1%), Germany (5.4%) and the Netherlands (5.5%), and the highest in Spain (26.2%) and Greece (25.4% in August 2012). Compared with a year ago, the unemployment rate increased in sixteen Member States, fell in nine and remained stable in Austria and Slovenia.

The largest decreases were observed in Estonia (11.5% to 9.6% between September 2011 and September 2012), Lithuania (14.2% to 12.4%) and Latvia (15.7% to 14.2% between the third quarters of 2011 and 2012). The highest increases were registered in Greece (18.4% to 25.4% between August 2011 and August 2012),Cyprus (9.2% to 12.9%), Spain (22.7% to 26.2%) and Portugal (13.7% to 16.3%). Between October 2011 and October 2012, the unemployment rate for males increased from 10.3% to 11.6% in the euro area and from 9.8% to 10.7% in the EU27. The female unemployment rate rose from 10.7% to 11.8% in the euro area and from 10.0% to 10.7% in the EU27. In October 2012, 5.678 million young persons (under 25) were unemployed in the EU27, of whom 3.609 million were in the euro area. Compared with October 2011, youth unemployment rose by 279 000 in the EU27 and by 350 000 in the euro area. In October 2012, the youth unemployment rate was 23.4% in the EU27 and 23.9% in the euro area, compared with 21.9% and 21.2% respectively in October 2011 In October 2012 the lowest rates were observed in Germany (8.1%), Austria (8.5%) and the Netherlands (9.8%) and the highest in Greece (57.0% in August 2012) andSpain (55.9%). In October 2012, the unemployment rate was 7.9% in the USA. In Japan it was 4.2% in September 2012.

DCTS & Other Schemes to roll out through Aadhar Benefits under 29 welfare schemes being operated by different ministries would be transferred through Aadhaarenabled bank accounts in 51 districts spread over 16 states from 1 January 2013, Finance Minister P. Chidambaram said. The scheme of Direct Cash Transfer into bank accounts, the Minister said, would enable the government to extend benefits to the needy at the click of a button without any fear of misuse or duplication. ... roughly about 29 schemes are ready to start from the January 1. It is possible that one or two schemes may start a few days or a couple of weeks late. But ultimately we want to load all these schemes on the system. Out of the 42, we think about 29, give or take one or two, will be ready, Mr Chidambaram said. At present, the government operates about 42 schemes, of which 29 would be covered by the cash transfer scheme that is to be launched from 1 January 2013 in 51 districts. The second roll-out to cover more districts would be launched in April 2013, he said. The schemes which would come under the purview of the cash transfer scheme would include those of Ministry of Social Justice and Empowerment, Human Resources Development (HRD) Minority Welfare, Women and Child Development, Health and Family and Labour and Employment. With the introduction of the Direct Cash Transfer Scheme, Mr Chidambaram said, falsification and duplication will be practically eliminated and I believe that (it) would result in considerable savings to the exchequer. He said in the later phase the benefits of the direct cash transfer would be made available for subsidies which are given for food, fertiliser and petroleum products.

The cash subsidy, he said, would be given to the beneficiaries having Aadhaarenabled account number through the bank branches or banking correspondents. Aadhaar, a 12digit number, serves as a proof of identity and address anywhere in the country. The UIDAI has already issued 21 crore Aadhaar cards. To start with there will be Banking Correspondents with miniature ATMs ... they will act as the bank account operator with a handheld ATM to enable the beneficiary to withdraw the cash benefit. But in course of time other distributors can also join the system. Self Help Groups, primary Cooperative society, any other body which can operate a handheld ATM can be a distributor. We expect multiple distributors to open as many distribution points as possible over a period of time, he added. Mr Chidambaram said he expects that in the 51 districts Aadhar penetration would be 80 per cent and the list of digitised beneficiaries for the schemes would be loaded on to the system. If the Aadhaar penetration is 80 per cent and more, then it is a fair assumption that the beneficiary penetration of Aadhaar will be close to 95 per cent. We hope to be able to do that by 31 December 2012. The infrastructure is in place, he said.

Indias credit rating outlook is stable Leading credit rating agency, Moodys said India rating outlook is stable because of the countrys strong economic growth along with high savings and investment rates. Indias Baa3 rating and stable outlook are supported by credit strengths which include a large, diverse economy, strong GDP growth and savings, and investment rates that exceed emerging market averages, the global rating agency said in its Credit Analysis on India report. It, however, said the rating is constrained by the credit challenges posed by Indias poor social and physical infrastructure, low per capita income, high government deficit and debit ratio. The rating has also been constrained due to the countrys complex regulatory environment and a tendency towards inflation, Moodys added. The government aims to restrict the fiscal deficit to 5.3 per cent of GDP this fiscal. It has also announced a slew of measures to spur infrastructure development and liberalised foreign direct investment (FDI) norms. However, given the delayed timing and still modest scope of these measure, growth may remain subdued in the near term amid continued domestic political uncertainty and a global slowdown, Moodys added. The agency said its stable outlook on Indias rating is based on our expectations that Indias structural strengths a high household savings rate and relatively competitive private sector will ultimately raise the GDP growth rate from around 5.4 per cent in FY 2013 to 6 per cent or higher in FY 2014".

In October this year, Standard & Poors had said that there was one-in-three likelihood of rating downgrade for India within 24 months if the economic growth prospects dim, its external position deteriorates, its potential climate worsens, or fiscal reforms slow. Earlier in April, S&P had changed the rating outlook of India from stable to negative, reflecting the possibility of a downgrade. Moodys annual report further said Indias fiscal position has long been a constraint for rating. The governments annual deficits tend to be among the highest within the Baa range, and have proven relatively more vulnerable to growth downturns due to elastic revenues and rigid expenditures, it said. Although absolute debt levels have risen steadily, the governments debt to GDP ratio has been declining over the last few years, it said. Its assessment of low government financial strength is based on its expectation that the governments debt and interest payment burden will remain high relative to its annual revenues over the medium term. However, Moodys cautions that unanticipated domestic political turmoil, a further worsening in global growth and financial conditions, or a surge in food and other commodity prices could all affect the pace and timing of the recovery.

2G spectrum auction is damp squib, govt receives just Rs.1700 cr! The Central Government has received a net payment of `1,706.92 crore from telecom companies which have won spectrum in the recently concluded 2G spectrum auction. This amount is far less than the targeted `40,000 crore from spectrum sale in the current financial year. The Central Government was banking heavily on the targeted amount to narrow down the fiscal deficit. The winners, in the recently-held spectrum auction, have the option of making deferred payments under which they are required to pay 33 per cent upfront and the rest in equal installments after a moratorium of two years. Telenor-promoted Telewings Communications has paid `1,326.03 crore out of `4,018.28 crore it needed to pay, while Vodafone paid `372.22 crore out of the required`1,127.94 crore. Bharti Airtel paid the entire amount of `8.67 crore. Videocon and Idea Cellular needed to pay `733.08 crore and `670.33 crore, respectively, but they adjusted their payments against licence fee they had paid for permits that were cancelled by the Supreme Court in February this year. The Empowered Group of Ministers on telecom in October had decided to adjust the earlier payment made by companies whose licences were cancelled by the Supreme Court in February on a rider that there are no criminal proceedings pending against them in 2G scam case. Telenor was hopeful of adjusting `1,658 crore licence fee of its joint venture Uninor, but it was not granted the benefit. Telewings is a separate company and hence it has to make payment, the Department of Telecommunications said. The bids received for spectrum in the recent auction were valued at `9,407.64 crore.

GDP growth hits bottom, grows at 5.3% in Q2 The Indian economy grew by 5.3 per cent in the July-September period of the current financial year (2012-13), pulled down by poor performance of manufacturing and agriculture sectors, showing persistent signs of slowdown. The Gross Domestic Product (GDP) had expanded by 6.7 per cent in the same period of last fiscal. It had grown by 5.5 per cent in the first quarter (April-June) of 2012-13. During the three-month period ended September 30, the manufacturing sector grew marginally by 0.8 per cent, against 2.9 percent growth in the same period of 2011-12, according to data released by the Central Statistical Organisation (CSO). Farm sector output expanded by just 1.2 per cent in the July-September period this fiscal, against 3.1 per cent in the same period last year. Mining and quarrying sector, however, showed some improvement and recorded a growth of 1.9 per cent during the quarter, as against a contraction of 5.4 per cent in the second quarter of 2011-12. The economic growth in the first six month of this fiscal (April-September) is 5.4 per cent, lower than 7.3 per cent growth clocked in the year-ago period. In the JulySeptember quarter, trade, hotels, transport and communications segment also witnessed lower pace of growth at 5.5 per cent compared to 9.5 per cent expansion in the same quarter in year ago. The growth rate of electricity, gas and water supply also dipped to 3.4 per cent in the second quarter, from 9.8 per cent witnessed in the same quarter of 2011-12. Construction sector expanded by 6.7 per cent Q2 of 2012-13, as against 6.3 per cent in the year-ago period. Growth rate of services sector, including insurance and real estate, stood at 9.4 per cent in the second quarter, against 9.9 per cent recorded in same quarter last fiscal.

Energy Security: ONGC buys massive stake in Kazakh oil field for U.S.$5 bn In its biggest acquisition ever, state-owned Oil & Natural Gas Corporation (ONGC) has agreed to buy U.S. energy giant ConocoPhillips 8.4 per cent stake in the Kashagan oilfield in Kazakhstan for about U.S.$5 billion. ONGC Videsh (OVL), the overseas arm of the state explorer, will pay a base price of U.S.$4.25 billion plus a share of working capital and other cash calls together with interest for the 8.4 per cent stake in the field that produces 370,000 barrels per day (18.5 million tons a year) of crude oil. OVL is seeking oil and gas properties overseas to meet the nations rising energy needs. Last year, India spent U.S.$140 billion on import of crude oil. OVL, under the Perspective Plan 2030, is targeting oil and gas production of 20 million tons of oil and oil equivalent gas by 2018 from current 8.75 million tons. This is to rise to 60 million tons by 2030.

The

stake

buy

in

Kashagan

field

is

subject

to

approval

of

governments

of Kazakhstan and India and also to other partners in the Caspian Sea field waiving their pre-emption rights. Italys Eni, Royal Dutch Shell, Frances Total, ExxonMobil and KazMunayGas have 16.81 per cent stake each, while Inpex of Japan has the remaining 7.56 per cent. It is believed that ExxonMobil and Shell are seeking bigger stakes in the Kashagan oil field and operating control before starting to expand the project. OVL concluding the deal would depend on the two firms waiving their right of first refusal (ROFR) or pre-emption rights. Kashagan, the biggest world oilfield discovery since 1968, holds an estimated 30 billion barrels of oil-in-place, of which 8-12 billion are potentially recoverable. Plans have already been firmed to ramp up output to 450,000 bpd (22.5 million tons per annum). The Kashagan Field, located in the shallow waters (about 5 meters to 8 meters) of the Kazakh North Caspian Sea, is the worlds largest current development project. The acquisition also bears a significant strategic importance for India in terms of contributing towards its energy security. The acquisition would mark OVLs entry into the largest oil proven North Caspian Sea of Kazakhstan. From Phase 1, the acquisition is likely to add an average annual production of about 1 million tons for a period of over 25 years with a peak of about 1.6 million tons, OVL said. When Phase 2 and 3 are implemented, the OVLs share will be significantly higher. This will be OVLs second acquisition this year. It had a couple of months back bought stake in a group of oil fields in Azerbaijan for about U.S.$1 billion. This will be the biggest acquisition by OVL, surpassing its U.S.$2.2 billion buyout of Russia-focused Imperial Energy in January 2009. It will be the biggest acquisition by an Indian company this year and the sixth largest in the history. Deals bigger than this one include Tata Steels U.S.$12.2 billion takeover of European steel giant Corus, Vodafone taking over controlling stake in Hutch-Essar from Hutchison for about U.S.$11 billion and Bharti Airtels acquisition of Zain Telecoms African assets for about U.S.$10.7 billion. Billionaire Anil Agarwal-led Vedanta Groups U.S.$8.6 billion acquisition of Cairn India is fourth and Hindalco Industries buyout of Canadian firm Novelis Inc. for U.S.$6 billion is fifth biggest. Deals announced this year include Hinduja Group firm Gulf Oil Corps acquisition of U.S.based specialty chemicals maker Houghton International Inc for U.S.$1.045 billion. Besides, Rain Commodities reached an agreement this year to buy Belgium-based specialty chemicals group Ruetgers in a U.S.$918 million deal.