Non-food Credit grew 17.8% to over Rs 43.66 lakh crore in the 12 months ending 2 December 2011

Non-food credit grew 17.8% to over Rs 43.66 lakh crore in the 12 months ending 2 December 2011 according to data released by the Reserve Bank of India. The offtake had stood at Rs 37.04 lakh crore during the 12 months to 3 December 2010. For the second consecutive fortnight when the annualised credit growth stayed below 18%.

A per the experts, slowdown in credit growth is on account of the high interest rate regime, which was increased 13 times since March 2010 with a view to reining in high inflation. Deposits rose to Rs 58.69 lakh crore as on 2 December 2011 as against Rs 49.89 lakh crore as of 3 December 2010 marking a growth of 17.6%.

RBI raised key policy rates by 350 basis points through 13 hikes since March,2010 to curb inflation, which has been above the 9% mark since December 2010. The rate of price rise was 9.11% in November 2011.

RBI had in its first quarterly monetary policy review for 2011-12 in July projected  credit growth to be around 17-18% in 2011-12, as against the earlier estimation of 19%, while deposit growth had been pegged at 17%.
During the financial year 2011 bank credit offtake increased by 21.5%, while deposits grew by only 15.5%.

Economic growth slowed to a nine-quarter low of 6.9% in the July-September 2011. industrial growth also entered the negative trajectory in October and contracted by 5.1%.

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George Whitman, Owner of a Fabled English-language Bookstore, Shakespeare & Company died

George Whitman, the American-born owner of Shakespeare & Company, a fabled English-language bookstore on the Left Bank in Paris died in Paris on 14 December 2011. His bookstore served as a magnet for writers , poets and tourists for close to 60 years.

For him the book business was the business of life. More than a distributor of books, Whitman saw himself as patron of a literary haven and the heir to Sylvia Beach, the founder of the original Shakespeare & Company.
Whitman founded his bookstore in 1951 and named it Le Mistral, then later named it after Sylvia Beach's earlier Paris bookstore Shakespeare and Company.

Overlooking the Seine and facing the Cathedral of Notre-Dame , the store that look beat-up behind a Dickensian facade and spread over three floors, has been an offbeat mix of open house and literary commune.

Whitman provided food and makeshift beds to young aspiring novelists or writing nomads, often letting them spend a night, a week, or even months. He welcomed visitors with large-print messages on the walls.
He was a contemporary of such Beat poets as Jack Kerouac and Allen Ginsberg.

Born in East Orange, New Jersey, United States he was awarded the Officier des Arts et Lettres medal by the French government for his contribution to the arts over the previous fifty years.

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Reserve Bank of India kept its Policy Repo Rate unchanged at 8.5 percent at its Mid-quarter Review

The Reserve Bank of India on 16 December 2011 left its policy rate unchanged at a three-year high of 8.5 per cent. RBI paused the hike after 13 consecutive rate hikes since March 2010.

The Reserve Bank of India kept its policy repo rate unchanged at 8.5 percent at its mid-quarter review two days after data showed November wholesale price index inflation at 9.11 percent, far lower than the 9.73 percent clocked in October.

The RBI also left the cash reserve ratio unchanged at 6 percent, despite market specualtion that it might cut the ratio in order to boost market liquidity.

The central bank noted that while inflation remained on the projected trajectory, downside risks to growth clearly increased. It reiterated that further rate hikes might not be warranted as the growth momentum was moderating.
Retaining its option to raise rates again if inflationary expectations persist, the RBI mentioned that the timing and magnitude of further action would depend on how things panned out on the inflation and rupee fronts.

RBI’s policy statement stated that inflation risks remain high and inflation could quickly recur as a result of both supply and demand forces. Also, the rupee remains under stress.

The central bank that the GDP growth declined to 6.9 per cent in the second quarter (July-September) from 7.7 per cent in the first (April-June), and key deficit indicators worsened mainly due to higher expenditure and lower revenues.

Noting that liquidity conditions were tight, consistent with the policy intent, the RBI mentioned that it would conduct open market operations as and when it felt the need for it.

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Supreme Court:Water Level in Mullaperiyar Dam should not exceed 136 Feet

The Supreme Court of India directed Tamil Nadu to ensure that the water level in the Mullaperiyar dam does not exceed 136 feet but declined to entertain Kerala’s plea for reducing the level to 120 feet. A five-Judge Constitution Bench, headed by Justice DK Jain gave the order.

The Supreme Court asked Tamil Nadu and Kerala to maintain restraint on their statements on the Mullaperiyar dam row. Urging for sanity and sensitivity, the court lamented that they were adding fuel to the fire instead of dousing it. The Bench also asked the Centre to clarify its position on Tamil Nadu's plea for deployment of Central Industrial Security Force to protect the dam from possible vandalism.

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Lok Sabha approved the Amendments to the Petroleum and Minerals Pipeline Act

The Lok Sabha on 12 December 2011 passed the amendments to the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962.

 The Bill aims to make provisions for sufficient deterrence to criminals from committing the offence of pilferage or sabotage. The existing sub-section (2) of section 15 provides that whoever willfully removes, displaces, damages or destroys any pipeline, shall be punishable with rigorous imprisonment of a term which shall not be less than one year, but which may extend to three years and shall also be liable to fine. Section 16 provides that offence under sub-section 15 shall be deemed to be cognizable under the Cod of Criminal Procedure, 1973.

The proposed amendments provide for higher quantum of punishment in terms of imprisonment and provision for death penalty in rare cases where the Act of sabotage is dangerous and is likely to cause death of any other person. The Bill further proposes to amend section 16 of the aforesaid Act to make the offences under sub-section (2), (3) of section 15 of the said Act to be cognizable and non-bailable. The amendment to the act was necessary to prevent pilferage of petroleum by organized gangs and saboteurs.  

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NATO announced the Withdrawal of its Iraqi Mission by the End of 2011

NATO  on 11 December 2011 announced that it would withdraw its Iraq training mission by the end of 2011. The decision follows a nearly complete pullout of US troops from Iraq. Meanwhile, the Iraqi Prime Minister Nuri al-Malki left for the United States to hold talks on ties between the two countries after the withdrawal of the American military troops.

 The NATO had earlier agreed in principle to extend its stay till the end of beyond 2013. At present around 4,000 US troops are left in Iraq on four bases.

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The Senate of Brazil approved Legislation to Preserve Forests

The Senate of Brazil on 7 December 2011 approved the bill that reforms rules on the amount of land farmers must preserve as forest. Brazilian senators voted by 59 to seven to approve the legislation.


The Key Features of the Bill
• The forest alongside rivers and lakes can be counted by farmers on their land as part of their conserved area. It reduces the total amount of land they need to safeguard or reforest.
• The bill allowed agriculture closer to environmentally fragile areas.
• The bill suspended fines for land cleared illegally before 2008 if farmers sign up to replant trees over the next 20 years.


 Although Brazil needs land for food production, environmentalists warn of increased Amazon destruction. Latest data show tree clearance at its lowest since 1988. As per the data released, there had been an 11% drop in the amount of rainforest cleared between August 2010 and July 2011 compared with the year 2010.

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Pentagon’s DSCA Report ranked India Third Amongst the Largest Purchasers of US Arms

According to the Defence Security Cooperation Agency (DSCA) report, India emerged as the third largest purchaser of US arms with contracts worth $4.5 billion in the year ended 30 September 2011 as US weapons sales rose to $34.8 billion in fiscal 2011. Defence Security Cooperation Agency is the Pentagon agency that oversees foreign arms sales.


Even though the US firms lost the bid for an estimated USD 10 billion contract for sale of 126 jets to Indian Air Force (IAF), India was listed as the third largest purchaser of US arms through the government to government channel Foreign Military Sales (FMS).


American arms sales to India include Naval Reconnaissance planes, giant transporters, sea-skimming missiles and other weapon systems.


According to the report government-to-government foreign military sales totalled $28.3 billion in fiscal 2011, while other sales managed by various government agencies reached $6.5 billion. The Pentagon had projected government-to-government sales would reach $36.3 billion for the year ending 30 September 2011.


Afghanistan, Taiwan, India, Australia and Saudi Arabia emerged the top buyers of US arms.


Topping the list for the fiscal year 2011 ending 30 September 2011 were- the Afghan Security Forces ($5.4 billion); Taiwan (US $4.9 billion); India ($4.5 billion); Australia ($3.9 billion); Saudi Arabia ($3.5 billion); Iraq ($2.0 billion); the United Arab Emirates ($1.5 billion); Israel ($1.4 billion); Japan ($0.5 billion); and Sweden ($0.5 billion).


The DSCA expected foreign military sales to continue to be about $30 billion for fiscal 2012.
Australia with USD 3.9 billion was fourth on the list, followed by Saudi Arabia (USD 3.5 billion), Iraq (USD 2.0 billion), the UAE (USD 1.5 billion), Israel (USD 1.4 billion), Japan (USD 0.5 billion) and Sweden (USD 0.5 billion).
US Foreign Military Sales passed the USD 30 billion mark for the fourth consecutive year, with the 2011 figure starting USD 34.8 billion.

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Japan decided to impose a Fresh Round of Financial Sanctions against Iran

Japan announced on 9 December 2011 that it is imposing a fresh round of financial sanctions against Iran. Japan will freeze the assets of 106 organizations, one individual and three Iranian banks.
More than 350 Iran-based entities are now subject to Japanese sanctions. However, the move will not restrict imports of Iranian crude oil, a step many Western nations have been urging.


Resource-starved Japan relies on Iranian oil for 10 percent of its energy supply.

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Mobile Subscriber Base in India increased to 881.4 million by October 2011 from 873.61 million

According to the data released by the regulator TRAI on 8 December 2011, mobile subscriber base in India increased to 881.4 million by October 2011 from 873.61 million in September 2011 registering a growth of 0.89%. The overall teledensity (telephones per 100 people) in India reached 76.03%.


Telecom operators added 7.79 million mobile subscribers in October 2011, taking the total number of telephone users in the country to 914.59 million.


The number of active mobile subscribers, according to the visitor location register (VLR) data, during the month of was 626.18 million. VLR numbers provide details on active customers at any given point of time, excluding switched-off and out-of-the-coverage area customers.


Performance by the telecom operators


The growth in the wireless category was led by Uninor, which added 2.66 million new users, taking its subscriber base to 32.31 million by the end of October 2011. Tata Teleservices  on the other hand lost 0.93 million and its subscriber base stood at 87.83 million.


The country’s largest private operator Bharti Airtel added 0.94 million subscribers, taking its user base to 173.73 million. Vodafone added 0.92 million new customers to take its user base to 145.91 million.


Idea Cellular and Aircel added 1.63 million and 0.48 million users, respectively, during the period. Idea's subscriber base stood at 101.81 million at the end of October 2011, while that of Aircel stood at 60.28 million.
RCom (Reliance Communications) added 1.03 million new subscribers to take its user base to 148.11 million, while SSTL added 0.74 million new users to take its total userbase to 14.01 million.


State-run telcos BSNL and MTNL added 0.40 million and 31788 new users in October. The subscriber base of BSNL stood at 96.19 million and 5.61 million, respectively.


Mobile Number Portability (MNP)


As per TRAI’s report, about 25.38 lakh subscribers submitted request for MNP in October 2011. Since the introduction of MNP in November 2010, about 231.66 lakh subscribers across India had submitted requests, till October, for changing their service providers while retaining their mobile numbers.


In MNP Zone-I (Northern and Western India), maximum number of requests were received in Gujarat (22.39 lakh), followed by Maharashtra (19.10 lakh).


In MNP Zone-II (Southern and Eastern India), maximum number of requests have been received in Andhra Pradesh (19.46 lakh) followed by Karnataka Service area (19.18 lakh).


Broadband


Wireline category subscriber base declined to 33.19 million in October from 33.31 million in September. Broadband subscription reached 12.98 million in the reported month from 12.84 million in September 2011.

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Defence Minister A.K. Antony ordered Probe into Controversial Rs. 500-crore Contract

Defence Minister A.K. Antony on 8 December 2011 ordered a probe into reports that a key military intelligence unit's imagery intelligence gathering and analysis equipment is below par. The probe was ordered based on a revelation that possible corruption in the procurement of Rs. 500-crore worth of equipment had compromised its ability to use satellite images of enemy troop movements and assets.


According to reports,  the Indian Army's imagery interpretation capabilities that are critical to provide information on enemy troops locations and military assets were compromised due to faulty procurement processes leading to critical software upgrades being denied to the unit by the contracted firm.


The Army's image-analysis capabilities, which allow it to cull information of military relevance from satellite images, were hit by a controversial 2008 contract. The contract relieved the supplier, Rolta, of its responsibility of providing periodic upgrades of the software — though the Army continued to pay crores of rupees to the company.
The reports of a leading daily also claimed that the Indian company was being contracted again for a Rs.165-crore order for supply of software for which it does not hold licenses anymore.


It was also established that the military officials involved in giving the contract to Rolta went on to work with the firm — raising fears of conflict of interest.

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American Multinational Conglomerate 3M, Launched New R&D Facility

American multinational conglomerate 3 M on 23 September 2011 announced the launch of its second research and development facility in Bangalore, India. 3 M established R&D centre with an investment of 100 crore rupees. Although the company had a bigger presence in China, revenues in China were growing faster.

The company plans to increase its sales in India from 1175 crore to 5000 crore rupees within the next five years. American multinational conglomerate 3M, was earlier known as the Minnesota Mining and Manufacturing Company.

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India Signed Double Taxation Avoidance Agreement with Estonia

India signed DTAA (Double Taxation Avoidance Agreement) with Estonia on 19 September 2011 and forged a pact to work with it in the field of information, communications and technology (ICT).  The DTAA and the pact on ICT was signed during the visit of communications and Information Technology Minister Kapil Sibal to Estonia. Kapil signed the DTAA with Estonian Minister of Finance Jurgen Ligi.

India will also set up a Chair on Cyber Security in Tallinn University and a Chair on Indian languages, history and literature in another of Estonia’s universities.

The government of Estonia also announced 20 scholarships for Indian students that enroll with Estonian universities for accredited doctoral programme leading to a PhD degree in information and communication technology, environment technology, biotechnology, material technology power engineering or health.

 Sibal travelled to Helsinki, Finland, to participate in a summit on information and network security for emerging markets following his visit to Estonia. Estonia is a state in the Baltic region of Northern Europe.

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Goa became the First Indian State to Launch Health Insurance Policy Covering all its People

Goa became the first state in India to launch Swarnajayanti Aarogya Bima Yojana providing health insurance cover for the entire resident population of the State. The State Government on 20 September 2011 signed a Memorandum of Understanding with ICICI Lombard which is the implementing agency for the new health insurance cover. About 3.2 lakh families in the state would be entitled to be in the purview of the scheme.

The novel and unique cash less health insurance scheme provides for meeting expenses of hospitalization for medical and/or surgical procedure including maternity benefit to the enrolled families upto 60000 rupees per family per year subject to limits in any of the government and private hospitals and nursing homes. The benefit to the family will be on floater basis and a sum insured of 60000 rupees can be availed individually or collectively by members of the family per year. Under the scheme, pre existing conditions/diseases are to be covered from day one. The scheme covers family comprising of household head, spouse and upto three dependents resident of Goa for over five years. A beneficiary will have to pay 100 rupees to the insurance company at the time of enrollment.

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Milky Way's Spiral Arms Caused by its Crashes with Dwarf Galaxy

Scientists stated that the two powerful collisions with a dwarf galaxy in the past two billion years was the cause of the spiral arm structure of the Milky Way. The new findings were published in the journal Nature. In trying to explain the shape of our own galaxy, the Milky Way, with its prominent spiral arms rooted in a central bar, scientists had earlier dismissed the influence of outside forces.

However, in the new study, scientists focused on the nearby Sagittarius dwarf galaxy, much of which had been ripped apart by the gravitational pull of the Milky Way, leaving debris that formed a large but very faint stream of stars around our galaxy.  This dwarf galaxy might have once been 100 times more massive.

 This dwarf galaxy's collision with the Milky Way triggered the formation of our galaxy's spiral arms, caused the flaring seen in the outermost disk and influenced the growth of its central bar.  The impact could have generated ringlike structures wrapping around the Milky Way, similar to ones actually seen in our galaxy, such as the Monoceros ring.

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Australia under the Captaincy of Michael Clarke won Test Series against Sri Lanka

Australia  under the captaincy of skipper Michael Clarke won the Test series against Sri Lanka 1-0 when the sexcond test concluded on 20 September 2011 Tuesday. It was Clarke’s first Test tour as captain. In the first test Australia won 125-run victory in Galle. The second Test in Pallekele ended in a rain-affected draw.

Clarke scored a fluent century and Michael Hussey narrowly missed a third consecutive hundred as Australia piled up 488 in their second innings before they were all out shortly before close with a lead of 331 runs. Clarke hit 112 and Hussey made 93 in a remarkable batting revival after Australia had conceded a first innings lead of 157 runs in good batting conditions.

The victory saw Australia and Sri Lanka exchange positions in the official Test rankings, with Clarke’s men moving to fourth place and Sri Lanka dropping to fifth.

Tim Nielsen stepped down as Australia's coach after helping the side to a series victory in Sri Lanka. Nielsen, who took over from John Buchanan in 2007, made the announcement after Australia managed a draw in the final Test at the SSC in Colombo.

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Finance Ministry relaxed Norms for Foreign Institutional Investments in Infrastructure Space

The finance ministry on 12 September 2011 relaxed the norms for foreign institutional investments (FII) in the infrastructure space by reducing the residual maturity and lock-in periods for investments in listed and unlisted bonds.

As per the new norms, FIIs were allowed to invest up to $5 billion in long-term infrastructure bonds having an initial maturity of five years and a residual maturity of one year compared to five years residual maturity before. FIIs were permitted to invest a maximum of $17 billion in long-term infrastructure bonds of an equivalent initial maturity but with a residual maturity period of three years compared to five years before. While the lock-in period for the $5 billion investment window was cut down from three years to one year, it will remain three years for the $17 billion investment.

The finance ministry had created a USD 3 billion window 9 August  2011 from the overall USD 25 billion limit. Qualified foreign investors (QFIs) were permitted to subscribe to debt schemes pertaining to infrastructure sector. $3 billion will continue to remain open to qualified foreign investors (QFIs) for investing in mutual fund debt schemes that invest in infrastructure sector.

The government had in May 2011 raised the FII investment limit to $25 billion for investments in listed and unlisted bonds from $5 billion before. The maturity period for these investments had been set at a minimum of five years and the lock-in period for three years. The scheme had been conceived to open new channels of funding for the infrastructure sector while deepening the corporate bond market. However the response to the scheme was founf to be tipid. The above changes were therefore introduced after consulting the Reserve Bank of India and the Securities Exchange Board of India (SEBI).

The new norms are expected to kick-start FII flows into the long-term corporate bonds and facilitate funding of infrastructure projects. Despite the $25 billion ceiling, only $109 million entered the market through this route as on 31 August 2011.

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India and Turkey Agreed for Future Cooperation in Coal Related Areas

India and Turkey on 12 September 2011 agreed for future cooperation in coal related areas during the meeting between Sriprakash Jaiswal, Minister of Coal, Government of India and Taner Yildiz, Minister for Energy and Natural Resources, government of Turkey. The meeting took place at Istanbul, Turkey on the sidelines of the 22nd World Mining Congress inaugural session.

India and Turkey discussed about the energy situation in the two countries, particularly in the field of coal mining. India offered technical cooperation to develop coal and lignite deposits and coal washing in Turkey. Turkey is planning to set up some 15000 MW coal based power generation plants and requested Indian companies to participate in the tenders.

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Scientists Found 2 New Species of Fish in Arunachal Pradesh

Scientists at the GB Pant Institute of Himalayan Environment and Development discovered two new species of fish in rivers of Arunachal Pradesh. The two new species of catfish are Erethistoides Senkhiensis and Glyptothorax Dikrongensis. The new species of fish were found at Senkhi stream and Dikrong River in Papum Pare district.

The new species which were named after their Arunachalee sources are ample proof of the rich flora and fauna of Arunachal Pradesh. Besides publishing about the discovery of Balitora brucei, Glyptothorax telchitta and Pseudolaguvia shawi, 88 species of freshwater fishes have been assessed and evaluated by the institute for the Red Data Book for International Union for Conservation of Nature (IUCN).

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Sri Lankan Golfer Anura Rohana emerged victorious in the Global Green Bangalore Open

Sri Lankan golfer Anura Rohana completed pole to finish victory in the Global Green Bangalore Open on 17 September 2011 thereby ending a decade-long wait for a title on Indian soil.

He wobbled a bit but steadied his nerves in authoritative style. Leading by a comfortable five shots from Mukesh Kumar overnight, Rohana overcame a minor blip to finish with three-under 69 for the round, and a card of 12-under-276 for the competition. Mukesh finished second (282) after shooting two-under 70.

Rohana's only previous triumph as a professional was in the Surya Nepal Masters in 2009. In the Surya Nepal Masters he had won dramatically when he won by two strokes with an eagle on the final hole.

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