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INDEX

1. National news

1.1Dialogue with India a ‘must’ to resolve conflicts Imran

1.2 India committed to boosting BIMSTEC connectivity: PM

1.3 Curbing open urination is next step

1.4 Own house for every India family by 2022, says PM

2. International News 2.1 ILO report flags wage inequality in India

2.2 India, China to improve military links

2.3 BIMSTEC envoys bat for FTA

3. Polity and Governance

3.1 SC scraps NOTA option for RS Polls

3.2 Will not weaken privacy protections: whatsapp

3.3 Law Commission calls for re-think on sedition clause

4. Economy

4.1 Credit registry: RBI Act may need tweak

4.2 BIS to set up panel for service sector

4.3 RBI flags risk of higher inflation

4.4 Centre moots overseas UDAN

5. Science and Tech

5.1 ISRO telemedicine nodes for soldiers in high altitude areas

5.2 New copters to enable tech transfer

5.3 Manned space mission before 75th I-day: ISRO chief

6. Environment / Geography

6.1 NDRF aid only for severe calamities

6.2 Mullaperiyar: genesis of a dispute

6.3 What the new CAF rules imply

7. Security

7.1 Govt. nod for 111 Naval utility choppers

7.2 Cabinet clears Rs 1600 Cr mission to map coasts


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Current Affairs (21 to 31 August, 2018)

1. National News

1.1 Dialogue with India a ‘must’ to resolve conflicts Imran

Pakistan’s new Prime Minister Imran Khan has said Islamabad and Delhi “must dialogue” to resolve their

conflicts, including that of Jammu and Kashmir. His comments came a day after Prime Minister Narendra

Modi called for constructive engagement with Pakistan.

In two tweets on Tuesday, Mr. Khan also came out in support of his friend and Punjab Minister Navjot

Singh Sidhu’s presence at his swearing-in ceremony in Islamabad on Saturday. “I want to thank Sidhu for

coming to Pakistan for my oath taking. He was an ambassador of peace & was given amazing love &

affection by ppl of Pakistan. Those in India who targeted him are doing a gt disservice to peace in the

subcontinent —without peace our ppl cannot progress,” he said.

“To move forward Pakistan and India must dialogue and resolve their conflicts incl Kashmir: The best

way to alleviate poverty and uplift the people of the subcontinent is to resolve our differences through

dialogue and start trading,” he said in a second tweet.

In Chandigarh, Mr. Sidhu hit out at the BJP for adopting “double standards” on his gesture of hugging

Pakistan Army chief General Qamar Javed Bajwa.

“When Mr. Narendra Modi became Prime Minister of India, he invited heads of SAARC nations including

former Pakistani Prime Minister Nawaz Sharif for the swearing-in ceremony. Mr. Sharif was accorded a

warm welcome when he reached India. Not only this, Mr. Modi, with a hope in mind, had suddenly gone

to Lahore to attend a family function of Mr. Sharif and greeted him without even any official

formalities,” Mr Sidhu said

A warm invitation

Pointing out that his visit was not political but was in response to a “warm invitation” from a friend, he

said, “Such things [visits] have happened before and also at times when there was tension between the

two countries and when our jawans were martyred. But now I hope that the new political change in

Pakistan is capable of bringing a constructive change in the region.”

“Former prime minister Atal Bihari Vajpayee had gone to Lahore with a message of peace but what

followed was the Kargil war. Five hundred twenty-seven Indian jawans attained martyrdom. Will you

blame him?,” the cricketer-turned-politician asked.

“Then, Modi sahib went to Pakistan without even any official formalities and hugged former Pakistan

PM Nawaz Sharif. Will you not call him a patriot?” he said, referring to Prime Minister Narendra Modi’s

surprise visit to Lahore in 2015.


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Mr Sidhu pointed out that after Also, Mr. Modi’s unannounced visit and later there was the terrorist

attack in Pathankot. “But does that mean attempts to peace making were stopped?” he said, adding

that talks between the two countries were the only possible way to end the conflicts.

On his meeting with Pakistan’s Army Chief Gen.Qamar Javed Bajwa, Mr. Sidhu said, “Gen. Bajwa met

[me] with enthusiasm after seeing me sitting in the first row. He told me that they were making efforts

to open the corridor from India’s Dera Baba Nanak to Kartarpur Sahib to facilitate the pilgrims to pay

obeisance on the occasion of 550th “Parkash Diwas” of Guru Nanak Dev.”

“'It was an emotional moment for me and the result [hug] was for everyone to see, which was natural

human reaction. Should I have turned my back?”' he asked, adding that he was disappointed and hurt

over the criticism over this sudden meeting and a spontaneous emotional reaction.

Reacting to Punjab Chief Minister Capt Amarinder Singh’s adverse remarks on his gesture towards Gen.

Bajwa, Pakistan’s Army Chief, Mr. Sidhu said he had great respect for his leader. “'I am not hurt. In a

democracy everyone can express his view. If he has spoken against me that doesn’t mean that I also

have to reply. I did what I felt was correct,” he said.

1.2 India committed to boosting BIMSTEC connectivity: PM

Making a strong pitch for enhanced regional connectivity, Prime Minister Narendra Modi said on

Thursday that India was committed to working with the BIMSTEC member states in the critical sector

and to combating the menace of terrorism and drug trafficking.

“I believe that there is a big opportunity for connectivity — trade connectivity, economic connectivity,

transport connectivity, digital connectivity, and people-to-people connectivity,” Mr. Modi said,

addressing the inaugural session of the fourth BIMSTEC summit here.

The Prime Minister said the region had become a meeting point for India’s ‘Neighbourhood First’ and

‘Act East’ policies. “India is committed to working with the BIMSTEC member states to enhance regional

connectivity,” he said.

The BIMSTEC is a regional grouping, comprising India, Bangladesh, Myanmar, Sri Lanka, Thailand, Bhutan

and Nepal.

“There is no country in the region which has not suffered from terrorism and transnational crimes, such

as drug trafficking linked to networks of terrorism,” Mr. Modi told the summit, which was inaugurated

by Nepal Prime Minister Khadga Prasad Sharma Oli.

‘No substitute’

Addressing the summit, Mr. Oli said the BIMSTEC was not a substitute to the SAARC, and the two

organisations could complement each other. He underlined the need for implementing the BIMSTEC


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poverty plan as well as the Millennium Development Goals for the benefit of the member states. He

stressed the need for deeper economic integration and collaboration among the members for speedy

development of the region.

Addressing the summit, Prime Minister Narendra Modi said the BIMSTEC member states, situated

between the Himalayas and the Bay of Bengal, face frequent natural disasters such as flood, cyclone and

earthquake, and called for “cooperation and coordination” among them in humanitarian assistance and

disaster relief efforts.

“As no single country can move alone for attaining peace, prosperity and development, we need to

collaborate and cooperate with each other in this interconnected world,” he said.

For research on art, culture and other subjects in the Bay of Bengal, India would set up a Centre for Bay

of Bengal Studies at the Nalanda University, he said.

Prime Minister Modi said India will host the International Buddhist Conclave in August 2020 and invited

all BIMSTEC leaders to attend the event as guests of honour.

He also said India was committed to enhance its national knowledge network in the field of digital

connectivity in Sri Lanka, Bangladesh, Bhutan and Nepal. India also plans to extend it to Myanmar and

Thailand. Mr. Modi hoped that the BIMSTEC member states will attend the India Mobile Congress in

New Delhi scheduled for October.

1.3 Curbing open urination is next step

Under new norms, cities and towns wanting to be declared ODF+ (Open Defecation Free Plus) must also

be free of public urination and not just open defecation. This is the first time that the Swachh Bharat

Mission (Urban) is officially including the elimination of public urination in its agenda.

The rural division of SBM had previously said preventing public urination was not on their agenda.

The Mission is focussed on infrastructure and regulatory changes, on the assumption that this will lead

to behaviour change.

“Cities are different from rural areas,” SBM-U mission director Vinod Kumar Jindal told The Hindu .

“In the case of urban areas, the problem is not one of usage, but of availability...In cities, if toilets are

available, accessible and clean, people will automatically use them rather than using the road.”

Sustainability is key

The ODF+ and ODF++ protocols, which were released by the Ministry of Housing and Urban Affairs last

week, are the next step for the SBM-U and aim to ensure sustainability in sanitation outcomes.


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The original ODF protocol, issued in March 2016, said, “A city/ward is notified as ODF city/ward if, at any

point of the day, not a single person is found defecating in the open.” So far, 2,741 cities have been

certified as ODF, based mostly on third-party verification of toilet construction.

The new ODF+ protocol, issued last week, says that a city, ward or work circle could be declared ODF+ if,

“at any point of the day, not a single person is found defecating and/or urinating in the open, and all

community and public toilets are functional and well-maintained.”

The ODF++ protocol adds the condition that “faecal sludge/septage and sewage is safely managed and

treated, with no discharging and/or dumping of untreated faecal sludge/septage and sewage in drains,

water bodies or open areas.” “Urination has always been implied as part of the ODF agenda,” said Mr.

Jindal. “That’s why there is a subsidy for urinals, not just toilets.”

1.4 Own house for every India family by 2022, says PM

Prime Minister Narendra Modi on Thursday said that “each paisa of every rupee released by his

government from Delhi” now reaches the beneficiaries because his government has rooted out

middlemen and corruption from the system.

Taking a dig at former prime minister Rajiv Gandhi’s remark that “if one rupee is released from Delhi,

only 15 paisa reaches the poor”, Mr. Modi said that his government had ensured every single penny

reached the poor.

Mr Modi expressed commitment of his government to provide house to every family by 2022 while

dedicating over one lakh houses built under Pradhan Mantri Avas Yojna in his home state Gujarat’s

Valsad district.

"While talking to women beneficiaries of the Pradhan Mantri Awas Yojna, I was watching the houses

built for them. Even you would be wondering how such good quality houses were built under the

scheme," Mr Modi said after interacting with some of the beneficiaries in various districts

of Gujaratthrough video conferencing from Valsad.

"This was made possible because there is no place for bribe or paying commission in my government. If

one rupee goes from Delhi, the entire 100 paise reach the house of the poor,” he said, adding his

government has shown “guts” to end corruption from the system.

"Mothers and sisters could say with satisfaction that they got homes as per the rules and they did not

have to pay a single rupee bribe for the same,” he added after interacting with a few beneficiaries via

video conference.

Mr Modi stressed on transparency brought in in the system after he became Prime Minister following a

landslide victory in 2014 national polls.


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"Gujarat has taught me a lot. This lesson has taught me to fulfil dreams within a specific time. It is my

dream, it is our endeavour to ensure that every Indian family has its own home by 2022," PM Modi said

while handing over a key of a new house to a woman beneficiary from Gujarat.

If housing for all was his theme of his speech in Valsad, in his next destination in Junagadh, PM talked

about his another ambitious scheme to provide healthcare services at affordable costs to every citizen

of the country.

While inaugurating a Gujarat government built hospital in Saurashtra’s Junagadh, PM talked about

Ayushman Bharat and said it will transform health sector in the country.

“Health sector must keep pace with the technological advancements globally. The coming of Pradhan

Mantri Jan Arogya Yojana- Ayushman Bharat will transform the health sector and ensure the poor get

top class healthcare and that too at affordable price,” PM said.

He also said prices of medicines have fallen drastically after his government started Jan Aushadhy stores

to sell generic medicines across the country.

During his day long visit to his home state Gujarat, PM Modi dedicated houses under PMAY, laid

foundation for a drinking water scheme, inaugurated a hospital and fisheries colleges, attended

convocation of Gujarat Forensic Sciences University (GFSU) and also attended a meeting of Somnath

temple Trust in presence of BJP patriarch LK Advani, party chief Amit Shah and former CM Keshubhai

Patel besides other trustees.


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2. International News

2.1 ILO report flags wage inequality in India

Real average daily wages in India almost doubled in the first two decades after economic reforms, but

low pay and wage inequality remains a serious challenge to inclusive growth, the International Labour

Organization warned in its India Wage Report published on Monday.

The ILO has called for stronger implementation of minimum wage laws and strengthening of the

frameworks for collective bargaining by workers. This is essential to combat persistent low pay in some

sectors and to bridge the wage gaps between rural and urban, male and female, and regular and casual

workers.

Overall, in 2009-10, a third of all of wage workers were paid less than the national minimum wage,

which is merely indicative and not legally binding. That includes 41% of all casual workers and 15% of

salaried workers.

In 2011-12, the average wage in India was about ₹247 rupees a day, almost double the 1993-94 figure of

₹128. However, average labour productivity (as measured by GDP per worker) increased more rapidly

than real average wages. Thus, India’s labour share — or the proportion of national income which goes

into labour compensation, as opposed to capital or landowners — has declined.

Yawning gap

The rise in average wages was more rapid in rural areas, and for casual workers. However, these groups

started at such a low base that a yawning wage gap still remains. Thus, the average wage of casual

workers — who make 62% of the earning population — was only ₹143 a day.

Daily wages in urban areas (₹384) also remain more than twice as high as those in rural areas (₹175), the

report said. Regional disparities in average wages have actually increased over time, with wages rising

more rapidly in high-wage States than in low-wage ones.

The gender wage gap decreased from 48% in 1993-94 to 34% in 2011-12, but still remains high by

international standards. And of all worker groups, the average wages of casual rural female workers was

the lowest, at just ₹104 a day.


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The ILO also highlighted the lack of timely data as a hindrance, pointing out that its analysis — and the

decisions of Indian policy makers — was dependent on 2011-12 data from the Employment and

Unemployment Survey (EUS) of the National Sample Survey Office (NSSO), as that was the last year in

which the survey was done. State-specific and comparative studies on wages are needed, said the ILO,

urging collaborative work between government agencies, academic institutions and expert

organisations.

2.2 India, China to improve military links

India and China on Thursday agreed to work towards full implementation of ongoing confidence-

building measures (CBM) along the border as well as improve military to military interactions. This was

agreed during bilateral consultations between Defence Minister Nirmala Sitharaman and visiting

Chinese State Councillor and Defence Minister General Wei Fenghe.

“It was decided to expand the engagement between the Armed Forces relating to training, joint

exercises and other professional interactions. Both sides also decided to work towards a new bilateral

Memorandum of Understanding (MoU) on defence exchanges and cooperation to replace the MoU

signed in 2006,” the Defence Ministry said in a statement.

General Wei is on a four-day visit to India, which comes exactly a year after the 73-day military stand-off

at Doklam.


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The 27-member delegation accompanying him consists of key military officials, including Vice Chief of

the Central Military Commission Air Marshal Dingqui Chang and Lieutenant General Guiqing Rong, Vice

Commander of the Western Theatre Command, which handles the entire border with India.

The statement further added that in order to ensure peace and tranquility on the border, both Ministers

agreed on greater interactions at the working level, including operationalisation of the hotline between

the relevant departments of the Armed Forces.

The two countries are also working on setting up additional Border Meeting Points (BPM) along the Line

of Actual Control (LAC). There are five BPM points along the Line of Actual Control (LAC) at Bum La and

Kibithu in Arunachal Pradesh, Daulat Beg Oldi and Chushul in Ladakh, and Nathu La in Sikkim. Another

BPM was added earlier this month on the eve of Independence Day.

The two armies are expected to resume the bilateral joint training exercise Hand-in-Hand this year. Last

year, it did not happen because of the Doklam stand-off. The exercise is normally scheduled for

November and officials said the modalities have to be worked out.

There was a suggestion from China for joint patrolling on the LAC. But it is not expected to move

forward as India is not keen on it. “It cannot be done as there is no demarcated boundary,” an official

source said.

General Fenghe had called on Prime Minister Narendra Modi on Tuesday, a meeting during which Mr.

Modi termed India-China relations as a factor of stability in the world.

2.3 BIMSTEC envoys bat for FTA

BIMSTEC suffers from a “lack of visibility” in the region, said the envoys of seven member countries who

form the “Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation,” who also

called for the speedy conclusion of a Free Trade Agreement within the group comprising Bangladesh,

Bhutan, India, Nepal, Sri Lanka, Myanmar and Thailand.

Prime Minister Narendra Modi will join a summit of leaders from BIMSTEC countries in Kathmandu on

August 30-31 and hold bilateral talks with most of them, including Bangladesh Prime Minister Sheikh

Hasina and Nepal Prime Minister K.P. Oli. At an event organised by business chamber FICCI just ahead of

the summit, envoys of BIMSTEC countries said the FTA should be the top priority for them.

“It is really disappointing that we are yet to finalise and conclude the FTA which was negotiated in 2004.

We need to expedite the BIMSTEC FTA to boost our intra-regional trade from its present level of 7% to

21%,” said Bangladesh High Commissioner Syed Muazzem Ali. “The visibility of BIMSTEC needs to be

enhanced in a region where already a few other regional cooperation groups like ASEAN, SAARC, SASEC

are in place,” he added. When asked about a timeline to complete the FTA, Sri Lankan High

Commissioner Chitranganee Wagiswara said it was still unclear whether the agreement would go

forward during the summit.


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“Even for the framework (2004) it took seven years. It is easy to negotiate an FTA between two

countries. India and Sri Lanka have it. But when seven countries are involved maybe it is not so easy,”

she said. Others added that at present the negotiations of the 16-nation Regional Comprehensive

Economic Partnership (RCEP), due to be completed by the end of 2018, were taking precedence.

The envoys also spoke about the need for the upcoming summit to promote security issues including

“terrorism and violent extremism” in the region.

“Terrorism is the most significant threat in the Bay of Bengal region as well as South East Asia and we

call for more cooperation amongst the member states on this issue,” said Myanmar Ambassador Moe

Kyaw Aung.

Thailand’s Ambassador Chutintorn Gongsakdi pointed out that the India-Myanmar-Thailand Trilateral

Highway had not been completed, which is crucial to trade movement between the countries.


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3. Polity and Governance

3.1 SC scraps NOTA option for RS Polls

The Supreme Court on Tuesday scrapped the use of NOTA (none of the above) option for Rajya Sabha

polls, saying it would usher back the “Satan of defections.”

A three-judge Bench, led by Chief Justice of India Dipak Misra, held that the option is meant only for

universal adult suffrage and direct elections and not elections held by the system of proportional

representation by means of the single transferable vote as done in the Rajya Sabha.

“The option of NOTA may serve as an elixir in direct elections but in the election to the Council of States,

it would not only undermine the purity of democracy but also serve the Satan of defection and

corruption,” Chief Justice Misra, who authored the judgment, observed.

‘Counterproductive’

The court pointed out that in the voting in Rajya Sabha elections, there is a whip and the elector is

bound to obey the command of the party.

“The party discipline...in this kind of election is of extreme significance, for that is the fulcrum of the

existence of parties. It is essential in a parliamentary democracy. The thought of cross-voting and

corruption is obnoxious...”

The court held that NOTA in an indirect election would not only run counter to the discipline expected

from an elector under the Tenth Schedule but also be “counterproductive to the basic grammar of the

law of disqualification... on the ground of defection.”

3.2 Will not weaken privacy protections: whatsapp

The Indian government and WhatsApp appear to be at loggerheads over tracing the origin of fake

messages. The messaging platform has said it will not comply with the government’s demand as the

move will undermine the privacy of WhatsApp users.

“People rely on WhatsApp for all kinds of sensitive conversations, including with their doctors, banks

and families. Building traceability would undermine end-to-end encryption and the private nature of

WhatsApp, creating potential for serious misuse,” the Facebook-owned firm said on Thursday.

“WhatsApp will not weaken the privacy protections we provide,” a company spokesperson stressed,

adding, “Our focus remains working closely with others in India to educate people about misinformation

and help keep people safe.”


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However, a source in the Ministry of Electronics and Information Technology said that given the

increased instances of crime due to fake news circulated on various platforms, including WhatsApp, the

government expects the company to “continue to explore technical innovations whereby, in case of

large scale circulation of provocative and nefarious messages leading to violence and crime, the origin

can be ascertained.” “It [WhatsApp] needs to set up an Indian corporate entity subject to Indian laws in

a defined time frame,” the source added.

3.3 Law Commission calls for re-think on sedition clause

Dissent and criticism of the government are essential ingredients of a robust public debate in a vibrant

democracy, the Law Commission of India said on Thursday.

The Commission, which is the Centre’s topmost advisory body on laws, headed by former Supreme

Court judge, Justice B.S. Chauhan, published a consultation paper recommending that it is time to re-

think or even repeal the provision of sedition (Section 124A) from the Indian Penal Code.

Right to free speech

The Commission has invited public opinion on the prospect of either redefining or doing away with

Section 124A in the “largest democracy of the world, considering that right to free speech and

expression is an essential ingredient of democracy.” Why should India retain sedition when the British,

who introduced sedition to oppress Indians, have themselves abolished the law in their country, the

Commission asked. Sedition attracts imprisonment from three years to life.

The Commission said an “expression of frustration over the state of affairs cannot be treated as

sedition.”

Safety valve

The consultation paper was published a day after the Supreme Court lashed out at the government,

saying “dissent is the safety valve of democracy,” while hearing a petition challenging the pan-India

crackdown and arrests of five activists.

“For merely expressing a thought that is not in consonance with the policy of the government of the

day, a person should not be charged under the Section… If the country is not open to positive criticism,

there lies little difference between the pre- and post-Independence eras. Right to criticise one’s own

history and the right to offend are rights protected under free speech. While it is essential to protect

national integrity, it should not be misused as a tool to curb free speech,” the Commission said in its

consultation paper.


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“In a democracy, singing from the same songbook is not a benchmark of patriotism. People should be at

liberty to show their affection towards their country in their own way,” the Commission said.

It said “every restriction on free speech and expression must be carefully scrutinised to avoid

unwarranted restrictions.”

But the Commission has also posed the query that if contempt of court invites penal action, should

“contempt of government” also attract punishment. The Commission asks whether it would be

“worthwhile” to rename Section 124A and find a “suitable substitute” for the term ‘sedition’.


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4. Economy

4.1 Credit registry: RBI Act may need tweak

The Reserve Bank of India Act, 1934, may need to be amended to facilitate the setting of a public credit

registry (PCR), RBI Deputy Governor Viral Acharya said on Monday.

Underscoring the vital need for the registry — the PCR is planned as an extensive database of credit

information for all credit products in the country from point of origination of credit to its termination —

Dr. Acharya said its main benefit would be to provide lenders with a 360 degree view of the borrower’s

outstanding credits and past performance. This would allow better screening at the time of providing

credit and superior monitoring during the life of the borrowing.

Highlighting some legal issues around setting up the PCR, Dr. Acharya said while the PCR is initially being

set up within the existing RBI infrastructure, the fact that the RBI as a statutory corporation can only

engage in those activities that are permitted by the RBI Act, or other relevant legislation, creates

complications.

He said in addition to its core central banking functions, RBI also performs certain promotional functions

which is only limited to ‘financial institutions’.

“Since no financing activity is contemplated for the proposed PCR, it might be difficult to label PCR as a

‘financial institution’. This takes it out of the purview of a promotion under the Reserve Bank of India

Act, 1934,” he said.

Other options

Another option, would be to promote an organisation for a matter incidental to the functions of RBI —

as part of the RBI Act or Banking Regulation Act, 1949.

He said collection of information, including credit information, from regulated entities is an important

aspect of the RBI’s regulatory and supervisory functions and hence such an activity could be done by

setting up a subsidiary or a department.

“Otherwise, the Reserve Bank of India Act, 1934, can be suitably amended conferring the Reserve Bank

powers to conduct the business of PCR, he said.

In October 2017, RBI had set up a high-level task force (HTF) chaired by Y.M. Deosthalee to review the

availability of information on credit and assess the gaps.

“The HTF submitted its report on April 4, 2018, recommending that a PCR should be set up by the RBI in

a phased and modular manner,” Dr. Acharya said.


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Highlighting the importance of the interplay of the GST Network and PCR, he said with such an

infrastructure in place “we expect the costs for onboarding those users who are currently excluded by

formal credit to nosedive.”

4.2 BIS to set up panel for service sector

The Bureau of Indian Standards (BIS) standards is set to formulate a framework for quality services that

should be provided to consumers and also talk about the benchmarks to deal with consumer complaints

or after sales service in an effort to ensure quality in the services sector.

At a meeting with industry bodies on Friday, it has been decided that the BIS will set up a separate

‘divisional council’ for services in a month’s time. Under this, different technical committees will be set

up — one for each service. The committees will have various stakeholders such as government officials,

experts and industry representatives.

Poll feedback

The process was initiated after concerns over lack of standardisation, particularly with regards to after-

sales service, in their feedback to the Ministry of Consumer Affairs.

In a poll, online community network LocalCircles found that in the absence of defined customer service

standards in the country, a majority of consumers were not happy with after-sales services. As per the

poll, 43% feel that mobile handset and computer manufacturers are the worst in after-sales services,

followed by white goods firms (38%) and automobile companies (11%). About 93% of respondents said

brands should at least acknowledge complaints from users within 72 hours. “Many consumers

complained that customer service numbers of many companies do not work,” according to LocalCircles.

4.3 RBI flags risk of higher inflation

The Reserve Bank of India (RBI) has warned about upside risks to inflation during the remaining part of

the current financial year, ‘warranting vigil and readiness’ to deal with them.

The risks could emanate from rising commodity prices, especially crude oil, global financial market

developments and second-round impact from revision of house rent allowance for central government

staff.

“Headline inflation which averaged 4.8% during Q1:2018-19, is likely to face upside risks over the rest of

the year from a number of sources,” the central bank said in its annual report released on Wednesday.

Inflation concerns have led RBI to raise the key policy rate, or the repo rate, twice in the last two

monetary policy meetings by 25 basis points each, to 6.5%.


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“A further rise in households’ inflation expectations in the June 2018 round of the Reserve Bank’s survey

warrants caution, especially to prevent wage-cost spirals from developing,” the central bank cautioned.

RBI has projected headline inflation at 4.6% in Q2 of 2018-19; 4.8% in the second half of the year; and

5% for the first quarter of 2019-20, taking into account the HRA impact for the central government. The

central bank said the stage is set for the ‘intensification of structural reforms that will unlock new

growth energies and place the Indian economy on a sustainable trajectory of higher growth.’

‘Favourable conditions’

On growth, RBI said incoming data pointed to favourable conditions for an acceleration of activity in the

Indian economy.

RBI said the Indian economy is set to step up its growth trajectory, adding that two aspects warrant

priority if this aspiration is to be ‘realisable and sustainable.’ The first is infrastructure that holds the key

to unleashing faster growth. “During 2018-19, this aspect of the infrastructure mission is set to

accelerate. Second, even as infrastructure development provides the thrust, sustaining the momentum

of growth will hinge around its inclusiveness and... its employment intensity.”

The pace and quality of growth will be anchored by progress on structural reforms over the medium-

term, it said. These include resolution of banking and corporate financial stress, taxation, agriculture,

liberalisation of the economy’s external interface and galvanising the business environment. “Hard-

earned gains of macroeconomic stability that have defined the recent period as its greatest achievement

need to be preserved as an imperative within this endeavour,” the report noted.

4.4 Centre moots overseas UDAN

State governments will be able to encourage tourism on preferred international air routes by offering

subsidy to domestic airlines for a period of three years. The Ministry of Civil Aviation has prepared a

draft scheme document for “UDAN International” and invited comments from stakeholders till

September 4.

The scheme is designed for State governments that are keen to promote air connectivity on

international routes identified by them and for which they are willing to provide subsidy to airlines.

As per the draft, a State will identify international routes for which the Airports Authority of India (AAI)

will determine a subsidy amount per seat and invite bids from domestic carriers. This will be followed by

airlines submitting their proposals, which will include the routes they wish to connect as well as the

subsidy needed by them.

The airlines will bid on the percentage of flight capacity for which they require financial assistance,

provided that the figure doesn’t exceed 60% of the flight capacity. The entity that quotes the lowest

amount will be awarded subsidy for a particular route.


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However, the government will grant financial aid only for the actual number of passenger seats that are

unsold, even if the airline had sought subsidy for a higher percentage of seating capacity at the time of

bidding.

No cap on fares

An airline that is awarded a particular route will have exclusive rights to a subsidy on that route for a

period of three years. The key difference between this scheme and the regional connectivity scheme

(RCS) for domestic routes is that there is no capping of fares. Under RCS, fares are capped at ₹2,500 for

one hour of flight on a fixed wing aircraft in order to make air travel affordable, which was why the

scheme was called Ude Desh Ka Aam Nagrik (UDAN).

“When we look at international connectivity, we are looking at people with disposable incomes looking

to undertake air travel for the purpose of tourism,” a source said, explaining the rationale behind not

capping fares. The financial assistance to an airline will be offered from the International Air

Connectivity Fund (IACF), which will be created through the contributions made by the State

government.

The scheme is meant for domestic airlines. Only fixed wing aircraft with more than 70 seats can be

operated under the scheme and airlines will have to conduct a minimum of three and a maximum of

seven departures on a given route on three days in a week.

The Centre has allowed airlines to enter into a code-sharing arrangement with international and

domestic airlines for UDAN international. The AAI may also offer additional discounts at its own

discretion such as landing, parking and housing charges at airports owned by it.

So far, Assam has proposed to offer ₹100 crore per year for flights to Kathmandu, Dhaka, Singapore,

Bangkok, Kuala Lumpur and Yangon. Andhra Pradesh has also expressed its keenness to the Civil

Aviation Ministry to encourage tourism.

At present, the low-cost carrier AirAsia operates daily flights to Kuala Lumpur from Bhubaneshwar with

a subsidy from the State government on a per-flight basis.


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5. Science and Tech

5.1 ISRO telemedicine nodes for soldiers in high altitude areas

In a major effort to improve emergency medical support to soldiers posted in high-altitude areas,

especially Siachen, the Integrated Defence Staff of the Defence Ministry and the Indian Space Research

Organisation (ISRO) signed a memorandum of understanding on Friday to set up telemedicine nodes in

critical places across the country.

“ISRO will establish 53 more nodes in the first phase over and above the existing 20, in various

establishments of the Army, Navy and Air Force across the country,” a defence official said.

In Siachen

As part of this, in addition to a functioning node on the Siachen glacier, four more nodes are being

established to enable medical consultation between soldiers deployed on the glacier and medical

echelons in the rear.

During winter months, many of the remote posts are cut off for several months because of adverse

terrain and extreme weather, making emergency evacuation near impossible. Communication through

satellite-enabled telemedicine nodes will be a paradigm shift in the delivery of lifesaving health care till

the weather clears up and movement is possible.

This joint initiative by ISRO and the Armed Forces Medical Services will transform the reach of

telemedicine to soldiers, airmen and sailors in remote and isolated posts, the official added.

5.2 New copters to enable tech transfer

The Defence Ministry is shortly expected to release project-specific implementation guidelines for the

111 naval utility helicopters to be procured under the Strategic Partnership (SP) model. However,

foreign companies say there is still some clarity required on crucial legal, liability and technology transfer

issues.

“There are two important issues that need clarity. One is legal. We can’t sell a submarine or fighter jet to

a private company. Global regulations do not allow that. It has to be to a government-owned company.

So, there has to be a government-to-government component in the end,” a top executive of a foreign

company said.

Large infrastructure

For the first time, under the SP model, Indian private companies will get to tie up with global original

equipment manufacturers (OEMs) and build major defence platforms in India under technology transfer.

So far, it was defence public sector undertakings (DPSUs) which played the lead role.


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The other issue, he said, was about the liability of the end product. “For us to stand guarantee to the

finished product built by a local company is a problem. There has to be a back-end mechanism to enable

us,” he said.

Industry seeks clarity on legal, liability issues under the Strategic Partnership model for defence buys

This liability issue was one of the major reasons the earlier medium multi-role combat aircraft (MMRCA)

deal for 126 jets got derailed at the contract negotiation stage, after Dassault Aviation refused to stand

guarantee to the aircraft manufactured by Hindustan Aeronautics Ltd. (HAL).

Another senior executive observed that there is large infrastructure already present in the country with

DPSUs and this must be utilised for the benefit of both the country as well as form a business sense.

“We hope to try and use that. There is no point reinventing everything. It will be risk mitigating for

everyone,” he said.

There is need for some clarity from the MoD on production transfer and technology transfer as well, the

executive added.

In July-end, the Defence Acquisition Council (DAC) cleared the general as well as project-specific

implementation guidelines for the naval helicopters that would lay emphasis on transfer of technology

and high absorption of indigenous content. The guidelines and the qualification guidelines are yet to be

communicated to the industry.


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All procurements under the SP model would be executed by specially constituted empowered project

committees (EPC) to ensure timely execution, the Ministry said. Apart from the helicopters, the projects

to be processed under the SP model are fighter aircraft, P-75I submarines and armoured vehicles.

5.3 Manned space mission before 75th I-day: ISRO chief

If everything goes according to plan, in 40 months, three Indians will be launched into space by an Indian

rocket. This is the aim of India’s ambitious manned spaceflight mission, Gaganyaan, the contours of

which were outlined by Dr. K. Sivan, Chairman of the Indian Space Research Organisation (ISRO) on

Tuesday.

“We will do it before the 75th Independence Day. I will say that we will target six months before that.

Sceptics have been doubtful but we are confident. Most of the technologies are already developed,” Dr.

Sivan told a press conference.

He stated that ISRO began work on the manned mission in 2004 and some of these technologies have

been demonstrated successfully through various tests — Space Capsule Recovery Experiment, Crew

module Atmospheric Re-entry Experiment and Pad Abort Test.

In the Independence Day address from the Red Fort, Prime Minister Narendra Modi had announced that

an Indian will go to space by 2022 “with the tricolour in his hand.”

ISRO will use its GSLV Mk-III launch vehicle, which has the necessary payload capability to launch

Gaganyaan, Dr. Sivan said. Two unmanned missions will be undertaken prior to sending humans on the

first manned flight within 30 months and manned mission in 40 months.

“The mission will aim to send a three-person crew to space for a period of 5-7 days. The spacecraft will

be placed in a low earth orbit of 300-400km,” Dr. Sivan said.

The total programme is expected to cost less than ₹10,000 crore and will result in significant spinoffs in

multiple dimensions, including technology spinoffs in the social sector.

“This is very cost-effective when you look at it from a larger perspective, more so when you compare it

with similar missions sent by other countries. The benefits which we are going to obtain from them are

invaluable,” Dr. Jitendra Singh, Minister of State for Space, said.

Launch sequence

A crew module, along with the service module, together called the orbital module weighing seven

tonnes, will be mounted atop the GSLV launch vehicle.

“The crew will reach low earth orbit in 16 minutes and stay in orbit for 5-7 days. During orbit, the

astronauts will carry out micro gravity experiments,” Dr. Sivan said.


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In the return phase, at 120 km above earth, the crew module will separate from the service module and

head towards earth in a controlled manner. “It will take 36 minutes to reach the earth,” he stated.

The crew module will splash down on the Arabian Sea closer to Ahmedabad. However, Dr. Sivan said

ISRO is drawing up plans to land the module on the Bay of Bengal or even on land in case of any

contingency to “ensure safety of the crew.”

The mission crew can be either Air Force pilots or even civilians. However, Dr. Sivan said that for the first

flight the preference is for pilots. The selection of the crew is expected to begin shortly as it will take 2-3

years to complete the training. “You can expect an advertisement soon,” Dr. Sivan stated.

National effort

Given the complexity of the programme, Dr. Sivan said, it will truly be a national endeavour with the

participation of ISRO, academia, industry as well as other government and private agencies as stake-

holders.

The project will also result in employment for 15,000 people most of it in the private sector.

To accelerate the programme, ISRO is considering seeking collaborations with space agencies from

friendly countries with advanced space programmes.

The programme once launched, will make India the fourth nation in the world to have a manned space

mission. So far only the U.S., Russia and China have launched human space flight missions.


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6. Environment / Geography

6.1 NDRF aid only for severe calamities

The Union government has declared the Kerala floods a “calamity of severe nature”. Here is a look at

what this means, whether the State can expect additional help from the Centre and how the various

disaster relief funds in the country are funded and deployed.

What are the classifications of disasters, and how does this affect funding?

According to the National Disaster Management Policy, the State governments have to provide disaster

relief from their respective State Disaster Response Funds (SDRFs), and only for a “calamity of severe

nature”, will additional assistance be provided from the National Disaster Response Fund (NDRF).

There is, however, no provision in the law or rules for the government to designate a disaster as a

“national calamity”.

Minister of State for Home Kiren Rijiju informed Parliament recently that the guidelines of the NDRF and

the SDRFs did not contemplate declaring a disaster a national calamity.

How are the NDRF and the SDRFs funded?

The NDRF is funded through a National Calamity Contingent Duty levied on pan masala, chewing

tobacco and cigarettes, and with budgetary provisions as and when needed. A provision exists to

encourage any person or institution to make a contribution to the NDRF. However, this source of

funding has not been tapped so far, according to the government.

The 14th Finance Commission recommended changes to this structure once the cess was discontinued

or subsumed within the Goods and Services Tax. However, the government, instead, decided to

continue with the National Calamity Contingent Duty even in the GST regime. The SDRF corpus is

contributed by the Union government and the respective State governments in a 75:25 ratio for general

category States and 90:10 for Special Category States.

The allocation of the SDRF for each State is done by the Finance Commission, and the Centre contributes

its specified share each financial year. The Central share of SDRF is released in two equal instalments, in

June and then in December.

What has been the trend in budgetary allocations to the NDRF and SDRFs?

The Union government has maintained a steady flow of funds to the NDRF each year, ranging from Rs.

5,690 crore in 2015-16 to a budgeted amount of Rs. 2,500 crore for the current financial year. In

addition, the Centre has also been contributing to the SDRFs every year, amounting to Rs. 8,374.95 crore

in 2016-17 and Rs. 7,281.76 crore in 2017-18.

How have NDRF funds been allocated to States in the recent past?


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In 2017-18, up to December 27, 2017, the Union government released NDRF funds to nine States —

Arunachal Pradesh, Bihar, Himachal Pradesh, Karnataka, Kerala, Nagaland, Rajasthan, Tamil Nadu, and

Telangana — over and above its contributions to their respective SDRFs. The recipient of the highest

amount was Karnataka, which got Rs. 913 crore that year.

Over the four years till December 27, 2017, the Centre has released the most cumulative funds to

Maharashtra (Rs. 5,244.69 crore), Karnataka (Rs. 5,122.45 crore), Uttar Pradesh (Rs. 4,949.04 crore),

Tamil Nadu (Rs. 3,115.31 crore), and Madhya Pradesh (Rs. 1,958.93 crore). For specific calamities, the

Centre released Rs. 1,365.67 crore for the Chennai floods of 2015 and Rs. 218.76 crore after Cyclone

Vardah in 2016. Andhra Pradesh received Rs. 400 crore and Rs. 230 crore after Hudud ravaged

Visakhapatnam.

6.2 Mullaperiyar: genesis of a dispute

The colonial-era Mullaperiyar dam has again become a source of friction between Tamil Nadu and

Kerala. Though the original dispute was over the appropriateness of the dam’s water level, Kerala,

already reeling under severe adverse impact from floods, has surprised everyone this time by accusing

Tamil Nadu of having carried out “sudden releases” of water. This, Kerala says, forced it to discharge

more water from the downstream Idukki reservoir, about 40 km away from Mullaperiyar, which has

been cited as one of the causes for the “deluge”. In Kerala’s assessment, Tamil Nadu should have

heeded its request immediately and lowered the water level in Mullaperiyar to 139 ft for moderating

floods.

‘Far less’

Tamil Nadu, on its part, has defended its position and stated that, well before shutters of the

Mullaperiyar were opened in the early hours of Independence Day (August 15), excess water was being

discharged through the flood gates of several dams in Kerala. Besides, compared to about 36 thousand

million cubic feet (TMC) of water released from the Idukki and Idamalayar dams in the Periyar basin

from August 14-19, the amount of water released from Mullaperiyar at the same time was hardly 6.65

TMC, which was “far less” than the quantities of water that flowed from the other two dams.

Mullaperiyar, the safety of which has been confirmed by experts on several occasions, has enough

provision to handle flood flows: this is how Tamil Nadu justified its stand, and denied the charge made

by its neighbour.

For those uninitiated into the history of the Mullaperiyar, here are some facts: the dam, located in the

Idukki district of Kerala, is operated and maintained by Tamil Nadu for meeting the drinking water and

irrigation requirements of five of its southern districts. As a sequel to an agreement signed between the

then Travancore and Madras governments in October 1886, about 8,000 acres was leased by the former

to the latter for the execution of the dam project. The dam was built over the period from 1887 to 1895.


https://www.thehindu.com/news/national/tamil-nadu/mullaperiyar-water-release-tamil-nadu-shares-details-with-supreme-court/article24781853.ece

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Troubles begin

Everything went smoothly for nearly 80 years. But, in 1979, a row erupted over the safety of the dam.

Consequently, in November 1979, a tripartite meeting chaired by the then head of the Central Water

Commission, K.C. Thomas, decided that water level had to be brought down from the full reservoir level

of 152 ft to 136 ft, in order to enable Tamil Nadu carry out dam strengthening works. By mid-1990,

Tamil Nadu started demanding restoration of the water level in the Mullaperiyar as it had completed the

task assigned to it. When no consensus was reached through negotiations, the Supreme Court was

approached. In two separate judgements, in 2006 and 2014, the apex court held that the water level be

raised to 142 ft.

It is against this background that the latest controversy has to be viewed. An element of uneasiness has

entered the ties between Tamil Nadu and Kerala on the subject of water. The equation between the two

States is far more complex than those of Tamil Nadu with Karnataka. With Kerala, Tamil Nadu has issues

on several river waters, such as Parambikulam-Aliyar, Siruvani of the Bhavani sub-basin, Neyyar, and the

proposal for linking the Pamba and Achankovil rivers of Kerala with Vaippar of Tamil Nadu. But, in the

case of Karnataka, Cauvery is the only river to be considered.

As for events concerning the present Kerala floods, there has been criticism in certain quarters that the

authorities in the State delayed the release of surplus water until the end. Officials of Tamil Nadu, too,

are of the view that it was their counterpart that had “mismanaged” the release of water from its

reservoirs, and only a “negligible amount” of water flowed from the Mullaperiyar to Kerala.

Overlooked

What is being overlooked in the current discourse is that Kerala, after a gap of five years, is experiencing

a bountiful southwest monsoon (June-September). As a matter of fact, between 2010 and 2017, there

was only one excess monsoon — in 2013. There were three deficit years (2012, 2015 and 2016), while

the remaining four years had a ‘normal monsoon’. Even in the ‘normal’ years, two years recorded a

negative value of departure for rainfall. So, Kerala’s water managers were under enormous pressure to

store as much water as possible. This could have possibly come in the way of their judgement in

commencing the release of water even at the beginning of August, when the storage in two important

dams — Idukki and Idamalayar — was a little more than 90% of their capacity. According to an August

19 report by the Meteorological Department, in all of 35-odd major reservoirs in Kerala, storage was

close to the full reservoir level (FRL) by the end of July, and there was no buffer storage left to

accommodate heavy inflows from August 10.


https://www.thehindu.com/news/national/tamil-nadu/mullaperiyar-dam-safe-to-store-water-up-to-142-ft-says-panneerselvam/article24730978.ece

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Tendency to store

Indeed, the tendency to store water to almost the full level of reservoirs is becoming a norm among

water managers across States. In mid-July, Karnataka, too, started releasing surplus waters from the

Kabini and Krishnaraja Sagar dams on the Cauvery system only when it knew that it could not hold any

more water. Fortunately, the Mettur dam in the Salem district of Tamil Nadu is big enough to

accommodate all the flood flows. For the last one month, Mettur, too, has been releasing excess water

flows. In December 2015, Tamil Nadu also faced criticism for delaying the release of surplus water from

the Chembarampakkam tank, causing floods in Chennai.

In the current battle over the Mullaperiyar, the Supreme Court has come Kerala’s rescue by telling Tamil

Nadu to keep the water level in the dam at 139 ft till the end of August. But Kerala and Tamil Nadu must

introspect seriously over their respective positions and avoid acrimony while protecting their interests.


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6.3 What the new CAF rules imply

Former Environment Minister Jairam Ramesh has, in a letter, raised serious objections to the rules

governing the administration of the Compensatory Afforestation Fund. He has described them as a

“blatant breach of assurances” given to Parliament. Here us a look at the key issues involved:

What is the Compensatory Afforestation Fund (CAF)?

The CAF is a nationally constituted authority that presides over a corpus of ₹66,000 crore. This is money

paid by developers who have razed forest land for their construction projects, and the idea is that such

land destroyed needs to be made good by regenerating forest elsewhere on non-forest land. The

amount to be paid depends on the economic value of the goods and services that the razed forest would

have provided. These include timber, bamboo, firewood, carbon sequestration, soil conservation, water

recharge, and seed dispersal. Industrialists pay this money and this is eventually transferred to the

States concerned to carry out afforestation. Until now, a Compensatory Afforestation Fund

Management and Planning Authority was in charge of the funds. However a new Act, the CAF Act 2016,

that came into being after over a decade since it was devised, now establishes an independent authority

to execute the fund. However, it was not until August that the rules governing the management of the

fund were finalised. And this has stoked controversy.

What was the controversy?

The CAF Bill was finally passed, in 2016, after the then Environment Minister, the late Anil Dave, assured

the House that all objections raised, particularly by Mr. Ramesh — such as the provisions of the Bill

vesting greater powers in the forest bureaucracy than on resident tribal people; the possible violation of

tribal rights, and gram panchayats not having the final say in deciding what kind of forests could be

grown — would be addressed within the Rules of the Bill. Several members had also raised doubts on

whether it would lead to an ecologically sustainable replenishing of forests, and whether tribal people

would be persecuted by officialdom under the garb of regenerating forests. Once the Rules became

public, Mr. Ramesh said they were a “breach” of promises made. In a letter to Union Environment

Minister this month, he pointed out several concerns.

What are these concerns?

Mr. Ramesh has alleged that the CAF Rules “undermined” several aspects of the Forest Rights Act (FRA)

and the Panchayats (Extension to Scheduled Areas) Act (PESA). In the current form, they significantly

reduced the authority of the gram sabhas in having a say in their local compensatory afforestation

projects and reduced them to the role of “consultants”. Much power instead was vested with the State-

level forest bureaucracy, according to Mr. Ramesh’s letter. The gram sabhas were put on the same

footing as panchayats; consequently there would be great control exerted by the State authorities in the

disbursal of the fund. The provisions laid out in the rules limit compliance with the FRA only to those

areas where rights holders have been formally recognised.


https://www.thehindu.com/news/national/forest-fund-rules-blatant-breach-of-assurances-says-jairam-ramesh/article24773987.ece

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What does the government say?

The government has said there was ample time for objections — after the rules were framed — to be

recorded. Mr. Ramesh hadn’t raised concerns then. Moreover, there was no undermining of the FRA

and the heads of the bodies, who had the authority to decide on CAF projects, were all members of the

community.


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7. Security

7.1 Govt. nod for 111 Naval utility choppers

The Defence Acquisition Council (DAC), which met on Saturday gave formal approval for procurement of

111 Naval Utility Helicopters worth over Rs. 21,000 crore.

The Navy had issued the Request for Information (RFI) last year but clarity was awaited on the

implementation guidelines under the Strategic Partnership (SP) model. The guidelines were approved

recently and are expected to be issued shortly.

“This is the first project under the MoD’s prestigious Strategic Partnership (SP) Model that aims at

providing significant fillip to the Government’s ‘Make in India’ programme,” the Defence Ministry said in

a statement.

SP model envisages indigenous manufacturing of major defence platforms by an Indian Strategic Partner

under technology transfer from a foreign Original Equipment Manufacturer (OEM).

The DAC decision will be valid for 18 months within which the Navy has to process the deal.

The selected manufacturer will then tie up with a suitable Indian partner to manufacture the helicopters

in India.

For the Army

In another deal for the Army, the DAC granted approval for procurement of 150 indigenously developed

155 mm Advanced Towed Artillery Gun Systems (ATAGS), at an approximate cost of Rs. 3,364.78 crore.

These guns have been indigenously designed and developed by the Defence Research and Development

Organisation (DRDO) in partnership with the private sector. They will be manufactured by production

agencies as nominated by the DRDO, the statement said.

The DAC also cleared the procurement of 14 Vertically Launched Short Range Missile Systems for the

Navy, which will boost the self-defence capability of ships against Anti-Ship Missiles. Of these, 10

systems will be indigenously developed.

7.2 Cabinet clears Rs 1600 Cr mission to map coasts

India is set to get more disaster warning systems along its coasts. While it already has a tsunami warning

system in place, the new systems will keep an eye out for “tsunamis and storm surges,” according to an

official release.


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The system is part of a programme called O-SMART (Ocean Services, Technology, Observations,

Resources Modelling and Science) that is being piloted by the Union earth sciences ministry. It was

cleared by the Cabinet Committee on Economic Affairs on Wednesday, at an outlay of Rs. 1,623 crore.

O-SMART will provide economic benefits to a number of user communities in the coastal and ocean

sectors, namely, fisheries, offshore industry, coastal States, defence, shipping, ports, etc.

Other key missions under O-SMART include, according to the press release, strengthening of Ocean

Observations and Modelling, strengthening of Ocean Services for fishermen, setting up marine

observatories for monitoring marine pollution, setting up Ocean Thermal Energy Conversion Plant

(OTEC) in Kavaratti, acquiring two coastal research vessels, continuation of ocean survey and exploration

of minerals and living resources, technology development for Deep Ocean Mining and manned

submersibles and the setting up six desalination plants in Lakshadweep.


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