Current Affairs for IAS Exams - 18 July 2015

Current Affairs for IAS Exams – 18 July 2015

:: National ::

Decision on net neutrality yet to take

  • Amid criticism of a DoT panel report suggesting 'regulatory framework' for Internet calls, Telecom Minister Ravi Shankar Prasad today said it is not the final view of the government and a "structured" decision will be taken only after looking into views of all stakeholders.

  • The suggestions of the panel, if implemented, may lead to free calls offered by apps like Skype and WhatsApp coming to an end.

  • The panel has proposed regulation of domestic calls on Internet-based apps like Skype, Whatsapp and Viber by putting them on par with services offered by telecom operators.

  • The panel was chaired by DoT Advisor for Technology A K Bhargava and members included officers A K Mittal, V Umashankar, Shashi Ranjan Kumar, G Narendra Nath and R M Agarwal. The minister had asked the panel to study net neutrality operation in various parts of the world and the debate on the issue.

  • Prasad said that the report is now in public domain for comments and it will be sent to TRAI also.

  • Net neutrality implies that equal treatment be accorded to all Internet traffic and no priority be given to an entity or company based on payment to content or service providers such as telecom companies, which is seen as discriminatory.

  • The DoT panel has said that international Internet-based calls and messaging services should not be regulated.

  • Telecom Watchdog, an NGO and co-petitioner in 2G spectrum case, has alleged that the report was a "protectionist policy for the incumbent telecom service providers" and anti-consumer.

  • Telecom operators, which have hailed the report, contend that they are under financial distress and there should be a level-playing field between them and Over-the-Top (OTT) players like WhatsApp and Viber, as these apps are eating into their revenues while using their infrastructure.

  • The pricing difference is around 12.5 times in the case of a voice call and 16 times for messages between services offered by telecom operators and OTT players, data put together by TRAI showed.

  • For a one-minute phone call, a customer is charged around 50 paise, but a call made using Internet costs 4 paisa to customer, according to TRAI calculations.

  • Indian telecom operators have said their cumulative investments in the sector stand at approximately Rs 7.5 lakh crore and further investments of around Rs 5 lakh crore will be required in the next five years to meet the demand.

:: International ::

Greece Bailout Moves Ahead After Germany Gives Its Backing

  • The bailout of Greece cleared some further key hurdles Friday after German lawmakers overwhelmingly gave their backing to another financial rescue and the European Union said it would release an interim loan that will ensure Athens avoids an imminent debt default.

  • The developments, along with Greek parliamentary approval early Thursday of creditor-demanded austerity measures, prompted a positive assessment from Europe's bailout fund, which approved a "decision to grant, in principle, stability support to Greece in the form of a loan program."

  • Prime Minister Alexis Tsipras, meanwhile, made changes to his government after he faced a rebellion in his party's ranks over the austerity measures, replacing two ministers who voted against him and changing another eight ministers or deputy ministers.

  • Though the broad outlines of the Greek bailout were agreed Monday by the eurozone's 19 leaders, the decision by the bailout fund known as the European Stability Mechanism formally kick-starts the process by which Greece negotiates the details.

  • The discussions, which are expected to last four weeks, will include economic targets and reforms deemed necessary in return for an anticipated 85 billion euros ($93 billion) over three years.

  • In recent weeks, the Greek economy has suffered a number of shocks as the country's euro future was on the line. The hope now is that the banks, which have been shut for the past three weeks, will reopen soon and that the paltry 60-euros a day withdrawal limit at ATMs will be raised.

  • The first big development Friday was the news that German lawmakers, in the wake of their Austrian counterparts, voted 439-119 in favor of opening detailed discussions on the bailout package. Chancellor Angela Merkel had warned them Greece would face chaos without a deal.

  • That was later followed by confirmation that the 28-country EU will release a loan of 7.16 billion ($7.7 billion) in short-term cash by Monday, when it has a 4.2 billion-euro debt repayment due to the European Central Bank.

  • The funds, which will come from a long-dormant EU program called the European Financial Stabilization Mechanism, will also help Greece clear arrears with the International Monetary Fund, and with the Bank of Greece.

  • The loan will be for three months and disbursed over two instalments, and comes a day after the ECB raised emergency liquidity assistance to Greek banks.

  • Germany is likely to continue playing a key role in Greece's future as it is the largest single bailout contributor. It's taken a hard line, insisting on stringent spending cuts, tax hikes and wide-ranging economic reforms in return.

:: India & world ::

Iran,India pact & Pakistan

  • Iranian President Hassan Rouhani has asked India to invest in infrastructure projects worth $8 billion, including an expanded role in developing a strategic port that will open up access to Central Asia, according to Iran's envoy to New Delhi on Friday.

  • The port of Chabahar in southeast Iran is central to India's efforts to circumvent arch-rival Pakistan and open up a route to landlocked Afghanistan where it has developed close security ties and economic interests.

  • Rouhani suggested the larger role for India during a meeting with Prime Minister Narendra Modi on the sidelines of a summit in Russia days before the historic nuclear deal between Iran and world powers, Iran's ambassador to India told Reuters.

  • Ansari said that with sanctions likely to be lifted soon, it was a "golden time" for India to seize investment opportunities because of the two countries' close trade ties and shared interest in improving Central Asian transport links.

  • Iran and six world powers reached a nuclear deal on Tuesday, clearing the way for an easing of sanctions on Tehran.

  • India and Iran agreed in 2003 to develop Chabahar on the Gulf of Oman, near Iran's border with Pakistan, but the venture has moved slowly because of the sanctions over Iran's atomic programme.

  • The two countries maintained a close relationship despite the US-led trade restrictions that halved their oil trade to 220,000 barrels per day last year.

  • In May, India's Shipping Minister Nitin Gadkari and his Iranian counterpart, Abbas Ahmad Akhoundi, signed an $85 million deal for India to lease two existing berths at the port and use them as multi-purpose cargo terminals.

  • Under the new proposal India could help build second and third terminals at the port, as well as railway connections into the rest of Iran,

  • India has moved slowly on opportunities in Iran in the past, including the giant Farzad B gas field. Ansari said India was the "first priority" to develop Farzad B, but urged New Delhi to move fast: "If they drag their feet, the market will not wait."

:: Science & Technology ::

Mass less particle for gen-next electronics found

  • A massless particle that eluded scientists for 85 years has been discovered and it could pave the way for faster and more efficient electronics and new types of quantum computing.

  • An international team led by Princeton University scientists has discovered Weyl fermions theorised 85 years ago.

  • The researchers reported in the journal Science the first observation of Weyl fermions, which, if applied to next-generation electronics, could allow for a nearly free and efficient flow of electricity in electronics, and thus greater power, especially for computers.

  • Proposed by the mathematician and physicist Hermann Weyl in 1929, Weyl fermions have been long sought by scientists because they have been regarded as possible building blocks of other subatomic particles.

  • Their basic nature means that Weyl fermions could provide a much more stable and efficient transport of particles than electrons, which are the principle particle behind modern electronics. .

Scientists detects how mosquitoes always end up biting you

  • This week a study has been published on the ways and means mosquitoes employ to find their prey - namely you.

  • Instead of just plopping down on whatever land they see, hoping to find some blood inside, the mosquito employs a range of senses to hunt you down and pierce your skin. Mosquitos, researchers suggest this week, use a combination of olfactory, visual, and thermal cues to find your arm, your leg, or your cheek. Whatever they need to do to suck your blood: they're going to do it.

  • The first step a mosquito takes in finding its prey is to smelling you. Once they've smelled you, they see you. Once they're close enough, they seek out the warmest spot on your body - or at least a suitably warm spot - and they land. Once they've landed... you know the rest. Here's how it all goes down:

    Step 1: Mosquito detects CO2 - likely through your breath.
    Step 2: CO2 activates mosquito's visual senses - the bug looks for you, looking for recognizable human or animal features.
    Step 3: Once the mosquito is close enough to its target, it begins detecting thermal clues to guide it to the optimal place for blood-sucking.

  • According to this study, humans become visible to mosquitoes at a distance of between 5 and 15 meters. Mosquitoes are able to detect CO₂ plumes of at distances further than 15 meters, at which point the tracking begins.

  • This information may help bug repellant sprays, ways, and means become far more successful in the near future. For now all we can tell you is - hold your breath.

  • You can find out more in the paper "Mosquitoes Use Vision to Associate Odor Plumes with Thermal Targets" as published with Science Direct by.

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:: Business ::

If Posco cancels $12 bn Odisha project & Modi's 'Make in India'

  • South Korean steel giant Posco has decided to suspend work at its proposed $12 billion steel project in Odisha after 10 years of delay.

  • According to a report in Bloomberg, company CEO Kwon Oh Joon has said the suspension will continue "until Indian Prime Minister Narendra Modi offers better deals".

  • The suspension of work assumes significance as it may result in a complete pullout from the project.

  • With the latest development the only thing certain about the controversial project is that that all parties involved - the governments and the company - are still committed to it.AFP

What is the project all about?

The Odisha government signed a memorandum of understanding with South Korea's Posco in 2005 to set up a 12 million tonnes per annum (mtpa) steel facility. As per the agreement, the project includes iron ore mine development over 30 years (total 600 million tonnes) at captive mines located in the Keonjhar and Sundergarh districts of Odisha and also development of related infrastructure like ports. The Posco project required 4,004 acres of land. The Odisha government has reportedly acquired 2,700 acres and handed over 1,700 acres to the steel giant. In all eight villages were to be directly impacted. It is the largest FDI commitment the country has received yet.

Why is the project controversial?

There are many reasons. First one is the protests from the betel vine farmers in the affected villages. Soon after the signing of the MoU villagers who were to be affected by the project started protesting against it. Posco Pratirodh Sangram Samiti was established by Sishir Mohapatra and fights for the rights of the tribals. The government has taken violent means to crush the protests against the project, resulting in deaths of villagers. The epicentre of the protests is Dhinkia village. In October 2013, a UN human rights panel asked the company to halt the work. "Construction of a mega-steel plant in Odisha in Eastern India should be halted immediately... The project reportedly threatens to displace over 22,000 people in the Jagatsinghpur district, and disrupt the livelihoods of many thousands more in the surrounding area," the panel of experts said.
Second issue is the environmental clearance. The project first got environmental clearance in 2007. On 30 March 2012, the National Green Tribunal suspended the clearance and directed the ministry of environment and forest to review the approval accorded earlier. An expert appraisal committee recommended that the clearance for the project could be revalidated until 2017. The critics of the project allege that the company does not have a valid MoU with the state government as the first pact got lapsed in 2010.
Thrid issue is iron ore linkage. The state government in January 2009 had recommended 2,500 hectares of Khandadhar iron ore reserve in Sundergarh district for Posco. The arrangement did not take off and it had a lot of twists and turns. In 2010, the Odisha High Court cancelled it and then the Supreme Court upheld it but wanted the Union mines ministry to take a final call. In January 2014, the central government sought more information from the state government on its recommendation in favour of Posco. Now, with the new mining ordinance promulgated by the Centre in the after of the coal scam, it is imperative that all companies have to participate in an auction to get mining licence. If the company is to participate in a competitive bidding, the costs are sure to go up, which is why the company has suspended its work now.
Fourth controversy was regarding the captive port. There is a view that the company should use the Paradip port, instead of setting up a captive port. According to this Business Standard article, state BJP leaders had voiced concerns about the iron ore arrangement recommended by the state government, the SEZ status accorded to the project and the captive port.

Why is the suspension of the project critical?

Because the chances of scrapping the project completely is now the highest. Also one cannot escape the irony that it is happening under the prime ministership of Modi, who projects himself to be a business-friendly politician. Moreover, what has hastened the decision to suspend the works is the mining ordinance promulgated by the government, which has been touted as one of the key reforms taken up by the government. If the project is indeed cancelled, it is likely to dent the government's investor friendly image. It will also be a setback to Modi's Make in India campaign. Meanwhile, for the fighting tribals, it will be a big victory.

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Sources: Various News Papers & PIB

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