News Highlights : 15 september 2016

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Giant Sea wall

CURRENT AFFAIRS SEP 15, 2016

01. Paying with plastic: Britain brings in polymer banknote:

A new polymer banknote featuring wartime leader Winston Churchill went into circulation on Tuesday in Britain — one of the first European countries with notes that, literally, can be laundered. The Bank of England will initially issue 440 million of the new £5 notes ($6.7, 5.9 euros) and the old note will cease to be legal tender in May next year. “The use of polymer means it can better withstand being repeatedly folded into wallets or scrunched up inside pockets and can also survive a spin in the washing machine,” bank governor Mark Carney said. “We expect polymer notes to last at least two-and-a-half times longer than the current generation of fivers and therefore reduce future costs of production,” Mr. Carney said. He said it was estimated to last five years.The new note has security features intended to make it harder to counterfeit. These include a see-through window with Queen Elizabeth II’s portrait and a picture of Big Ben in gold foil.

02. Lenders to gauge borrowers intent to pay, not just ability to pay loans :

Borrowers may no longer judged solely on the ability to repay the loan, intent to repay too may become a critical parameter to avail loan. A number of finance companies have tied up with consulting firm Index Advisory which specialises in psychometric testing in lending that gauges the borrower's creditworthiness on the basis of their intent to pay, instead of their ability to pay. So far, banks and finance companies have factored borrower's ability to repay the loan rather than their intent to repay. This issue gains significance after billionaire Vijay Mallya, defaulted on Rs 7000 crore loan taken by his company Kingfisher Airlines and fled the country. The technique operates according to a system where they take 2-3 months to design an appropriate questionnaire for the targeted group of borrowers. The questions that can be taken with pen-paper or digitally are suitably modified and reflect the needs and challenges of the sector that the borrower belongs to. So, the questionnaire for vehicle loans will differ from that for education loans or MSMEs, Mariwala said adding that there are checks in place that make sure no one is able to bluff.

03. RCom-Aircel merge to create Rs 65,000 crore entity in “largest-ever” telecom consolidation:

Reliance Communications (RCom) board on 14th Sept 2016, approved the company’s merger with Aircel, in one of the biggest deals in the telecom space in recent times. It also comes at a time when Mukesh Ambani’s Reliance Jio has made an aggressive entry into the telecom industry, sending jitters among incumbents. RCOM and MCB will each hold a 50% stake in the merged entity (“MergedCo”), with equal representation on the Board of Directors and all Committees. The company will be managed by an independent professional team under the supervision of the Board. RCOM’s overall debt will reduce by Rs 20,000 crore ($3 billion) or over 40% of its total debt, and Aircel’s debt will reduce by Rs 4,000 crore (4600 million), upon completion of the transaction in 2017. The MergedCo will be one of India’s largest private sector companies, with an asset base of over Rs 65,000 crore ($9.7 billion) and net worth of Rs 35,000 crore ($5.2 billion), said Reliance’s release. The MergedCo will have the second-largest spectrum holding amongst all operators, aggregating 448 MHz across the 850, 900, 1800 and 2100 MHz bands, and will enjoy enhanced business continuity through extended validity of spectrum holdings till 2033-35, the release added.

04. Finance Ministry to probe into bankers depositing money in Jan Dhan accounts :

Finance Ministry said that it will ascertain facts with regard to instances of bankers depositing small amounts in the Jan Dhan accounts to reduce the number of zero balance accounts. Observing that there was no requirement of minimum balance in the Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts, the Ministry said “in view of the specific instances mentioned (in a media report), facts are being ascertained to assess if there has been any misunderstanding at the branch level of the objectives of the scheme.” A section of media in a report yesterday cited specific instances where Re one or more was deposited by bankers themselves to bring down the number of zero balance accounts. In a release, it said it needs to be appreciated that since the absence of balance in PMJDY accounts in no way diminishes the benefits associated with these accounts, there is no requirement of even a small balance in the accounts. The PMJDY, it said, continues to be a robust scheme which provides benefits even when there is no balance in the accounts. “Government remains committed to adding value to the PMJDY by routing benefits directly into bank accounts under various schemes.” Over 24 crore PMJDY accounts have been opened and they have a total balance of more than Rs 42,000 crore. PMJDY, the flagship financial inclusion scheme of the government, aims to provide financial services, deposit accounts, remittances, credit and accident insurance to everyone.

05. India takes US renewable energy dispute to the World Trade Organization :

India has complained to the World Trade Organization about support given to the renewable energy industry in eight US states, the WTO said in a statement on 12th Sep 2016. The complaint alleges the states of Washington, California, Montana, Massachusetts, Connecticut, Michigan, Delaware and Minnesota prop up their renewables sector with illegal subsidies and domestic content requirements - an obligation to buy local goods rather than imports. By filing the complaint, India has triggered a 60-day window for the United States to settle the dispute, after which India could ask the WTO to adjudicate.

06. China has world’s longest bullet train network :

China’s high-speed railway has completed over 20,000 kms of track network in the country, becoming the world’s longest bullet train network. A high-speed railway linking Zhengzhou in China’s central Henan Province with Xuzhou in eastern Jiangsu Province opened on 11th Sept 2016. With the operation of the new line, China’s high-speed railway lines have exceeded 20,000 kms in total length, the world’s longest. The 360-km line connects high-speed railway in the west with two major north-south lines, helping cut travel time between the west and east. The travel time between Xi’an and Shanghai is cut to six hours from nearly 11 hours. The line has nine stations and trains run at a speed of up to 300 kph in the initial period. Construction of the line started in December 2012 and test operation started in April 2016.

07. Indonesia to resume work on “Giant Sea Wall” to save sinking Jakarta :

Indonesia will resume land reclamation that will help prevent Jakarta from sinking below sea level, a Cabinet Minister said, five months after work was suspended due to regulatory and environmental concerns. Greater Jakarta, one of the world's most densely populated cities, sits on a swampy plain and is sinking at a faster rate than any other city in the world. Jakarta has focused its attention on bolstering its defences with a 15-mile sea wall and refurbishing the crumbling flood canal system. The government decided late on 13th Sept 2016, to allow work to continue on a key phase of the “Giant Sea Wall", which aims to shore up northern Jakarta while revamping the capital's image into a Singapore-like waterfront city. “If this Giant Sea Wall is not done, that will create a big impact on Jakarta with regards to salt water penetration," Coordinating Maritime Minister Luhut Pandjaitan told reporters. Included in the master plan is the building of 17 artificial islands off Jakarta's northern coast, where property developers plan to build shopping malls and attractions similar to Singapore's Sentosa Island.

08. Automation to replace people for repetitive work: Report

Employees in India are getting ready for automated workplace as 63 per cent of workforce believes that machines will replace people for repetitive work. According to a study by ADP, a leader in Human Capital solutions, nearly two thirds (63 per cent) of employees in India believe automation, smart machines and artificial intelligence will replace people for repetitive work, and 61 per cent of those surveyed welcomed the trend. Employees in India were more positive than their counterparts from across Asia when it comes to automation, it revealed. The study was conducted across North America, Europe, Latin America and Asia-Pacific to understand how trends are impacting the workplace and the needs of employees, ADP said in a statement. The majority of employees in Australia and Singapore were not positive about this technological shift, according to the study titled ‘Evolution Of Work’. Employees in India were found to be more eager than employees across the region to adopt new workplace technologies with 82 per cent of respondents in India excited about the ability to do all work on a mobile device.

09. India declares itself free from bird flu :

India is free from Avian influenza (H5N1), popularly known as bird flu, from September 5, the department of animal husbandry, dairying and fisheries in the ministry of agriculture and farmers welfare has declared. In a notification, the ministry of agriculture has said that there was outbreak of bird flu on May 9 at Humnabad, Bidar in Karnataka. There has been no further outbreak, thereafter. Spelling out the control measures taken, the department said it had stamped out the entire poultry population, destroyed eggs, feed, litter and other infected materials, restricted movement of poultry and poultry products to and from the area of outbreak, disinfected and cleaned up infected premises. Surveillance was carried out throughout the country, it said. In a letter to the state chief secretaries, the Center has emphasized the need for continued surveillance especially in the vulnerable areas bordering infected countries and in areas visited by migratory birds.

10. Prices of LED bulbs drop to Rs 38 :

Prices of LED bulbs being distributed by state-run Energy Efficient Services Ltd (EESL) under a government programme have fallen to one-tenth of their rates two years ago. A senior government official said EESL has received bids at Rs 38 for a 9-watt LED lamp. Fourteen companies participated in the tender opened last week for procuring five crore LED bulbs. Prices of LEDs procured by EESL under the Unnat Jyoti by Affordable LEDs for All (Ujala) scheme have been consistently falling. The company had in March received bids at Rs 55 per piece. The company had purchased the LEDs at Rs 310 in 2014. LED bulbs are available in the market at Rs 90-100 a piece. Production of LED lamps in the country has increased to about four crore per month from 10 lakh two years ago. LED bulbs consume 80% less energy than incandescent bulbs and almost half of that used by CFLs. Prime Minister Narendra Modi had in his Independence Day speech said the government was distributing LED bulbs for Rs 50 a piece against the earlier price of Rs 350.