9 PM Daily Current Affairs Brief – April 7 2017

[1]. Not just happy endings

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Live Mint

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Front Page / NATIONAL

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1. Supreme Court proposes joint trial of Babri cases

Context

The Supreme Court says that the delay in Babri case amounts to evasion of justice.

Babri Masjid Demolition Issue

• On December 1992, a large crowd of Kar Sevaks (volunteers) demolished the 16th-century Babri Mosque in the city of Ayodhya, in Uttar Pradesh.
• The demolition occurred after a political rally at the site turned violent.
• An inquiry into the incident found 68 people responsible for the demolition.

Article 142

“The Supreme Court in the exercise of its jurisdiction may pass such decree or make such order as is necessary for doing complete justice in any cause or matter pending before it, and any decree so passed or order so made shall be enforceable throughout the territory of India.”

Supreme Court can use its extraordinary constitutional powers under Article 142.

Precautions

Following precautions must be taken while exercising Article 142:

• Article 142 is not a source of unlimited power to go far ahead.
• There should be self-restrain
• It can’t be a tool for judicial dictatorship.

Stand of Supreme Court

• Culprits should not go scot-free.
• Doing justice by using extraordinary powers given by the Constitution.
• Case to be wrapped up in two years.

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2. India, Russia seal deal on Kudankulam Unit 1

Context

India has taken full control of Unit 1 of the Kudankulam Nuclear Power Plant (KKNPP).

Kudankulam Nuclear Power Plan

• Kudankulam Nuclear Power Plan is the single largest nuclear power station in India.
• It is situated in Koodankulam in the Tirunelveli district of the southern Indian state of Tamil Nadu.
• KKNPP is scheduled to have six reactors built in collaboration with Russia and India – Nuclear Power Corporation of India Limited (NPCIL), with an installed capacity of 6,000 MW of electricity.

Agreement

• Joint statement with Russia for the final takeover of the plant.
• Russia and India have confirmed fulfillment of all warranty terms and obligations of the contractor for the construction of Unit 1.
• Warranty period shows reliable and safe operation of Unit 1.

Why was the Final takeover delayed?

• It was delayed to fully ensure reliability of the plant and equipment, as this is the first of a series of six reactors.
• Technical issues: Unit 1 had encountered technical issues and was shut down briefly after it started power generation.
  

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Editorial/OPINION

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1. Friendship is a flowing river

Context

Maintaining a good relationship between India and Bangladesh would be beneficial for the people of both the countries.

Introduction

The support and cooperation of India had accelerated the goal to earn the independence of Bangladesh. India played a leading role in the independence of Bangladesh.

Bangladesh Liberation War and the role of India

The Bangladesh Liberation War, also known as the Bangladesh War of Independence was a revolution and armed conflict started by the rise of Bengali nationalists and self-determination movement in East Pakistan and the 1971 Bangladesh genocide. It resulted in the independence of the People’s Republic of Bangladesh.

Developments:

• The Pakistani military started a genocide launching armed attacks on the innocent Bangalees on March 1971.
• The Bangalee nation was subjected to oppression and subjugation, and deprived of its rights.
• The nation was close to lose its right to speak in its mother tongue.
• People of Bangladesh took arms and the liberation war began.
• India stood beside the oppressed community.
• India gave food and shelter to nearly 10 million refugees of Bangladesh.
• India extended full cooperation in the liberation war and played an important role in creating global opinion in favor of Bangladesh.
• The support of India helped Bangladesh to earn victory and Bangladesh was freed from enemy occupation.

Areas of cooperation

• Both India and Bangladesh have a common stand on tackling terrorism.
• Similar  views on how organizations like South Asian Association for Regional Cooperation (SAARC) should be going forward
• Indian investment in Bangladesh
• Defense deals

Potential of Bangladesh

• Bangladesh is moving ahead rapidly. There is 7.1% GDP growth currently.
• Inflation is contained within 5.28%.
• Poverty rate is reduced to 22%.
• On the socio-economic front, Bangladesh is standing better than many other South Asian nations.

Way Forward

• Poverty and malnutrition are the main enemies of both India and Bangladesh.
• Eradication of poverty needs to be the priority for both the nations.
• Regional cooperation and improved connectivity is the key.
• Issues to resolve: Teesta issue.

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2. RBI monetary policy: Growth, with caveats

Context

RBI has increased the reverse repo rate. RBI was not expected to change its key policy rates after its shift from an accommodative to a neutral monetary policy stance.

First Monetary Policy Review 2017-18

The following was decided:

• Raising the rate at which RBI borrows funds from banks (the reverse repo rate) by 25 basis points, from 5.75% to 6%.
• Other policy rates remained same.
• RBI has proposed a new liquidity management tool that would make draining of surplus liquidity a priority.

What is Reverse Repo Rate?

Reverse repo rate is the rate at which the Reserve Bank of India borrows money from commercial banks. An increase in the reverse repo rate will decrease the money supply and vice-versa. An increase in reverse repo rate means that commercial banks will get more incentives to park their funds with RBI, and thus decreasing the supply of money in the market.

Reason for changing reverse repo rate

The change made in reverse repo rate is aimed at sucking out excess liquidity from the system.

Conclusion

• RBI is very optimistic about the growth rate of India. It is projecting 7.4% growth in Gross Value-Added this year.
• A comeback of consumer spending in India is likely.
• RBI will unveil a new Prompt Corrective Action framework.
  

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Economy

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1. RBI holds policy rate, raises reverse repo rate

Context

RBI has raised the Reverse Repo Rate, while holding the other policy rates.

Decision taken in the bimonthly policy review

• Reverse Repo Rate increased to 6%, from 5.75%.
• All 6 members of the Monetary Policy Committee (MPC) – which decides interest rates, have voted in favor of the decision.

What is Monetary Policy Committee (MPC)?

The Monetary Policy Committee (MPC) is a committee of Reserve Bank of India (RBI). It is headed by its Governor. It is given the task of fixing policy interest rate (repo rate) to contain inflation within the specified target level.

Reasoning behind RBI’s decision

RBI’s neutral policy stand of achieving medium-term target for retail inflation, which is at 4%.

Observations by MPC

Following observations were made by the Monetary Policy Committee (MPC):

• Task of 4% inflation targeting is a challenging one.
• It has proposed a Standing Deposit Facility (SDF) to the government, which is awaiting approval. Introduction of SDF would give greater flexibility to the RBI for managing its liquidity operations.

What is Standing Deposit Facility (SDF)?

Standing Deposit Facility (SDF) is a mechanism that RBI uses while lending funds to primary dealers. Lending facilities provide financial institutions with access to funds in order to satisfy reserve requirements using the overnight lending market.  This framework would help drain surplus cash from the system.

Conclusion

Banks have the option of cutting lending rates, even though RBI has not reduced the repo rate. Also, the decision of RBI in the Monetary Policy Committee Review to reduce the Reverse Repo Rate resolves its stand to attain 4% inflation target over the medium term.

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2. Centre to seek parliament nod for RDA

Context

India’s first rail regulator Rail Development Authority (RDA) to be set up by an executive order.

Rail Development Authority (RDA) and its functions

• The Rail Development Authority (RDA) will decide on tariffs, ensure fair play and a level playing field for stakeholder investment in the railways, set up efficiency and performance standards and disseminate information.
• The authority will work within the parameters of the Railways Act, 1989.
• The authority will have a chairman and three members and can engage experts from relevant areas. The team will have a five-year term.
• The RDA will help the government take appropriate decisions on important policy and operational issues. These will include suggesting measures for enhancement of non-fare revenue, ensuring protection of consumer interests, promoting competition, encouraging market development, creating positive environment for investment and promoting efficient resource allocation.
• It will also benchmark service standards, suggest measures for absorption of new technologies and human resource development and provide a framework for non-discriminatory open access to the dedicated freight corridor infrastructure.

Drawbacks

Following are the drawbacks:

• It can only recommend changes to passenger and goods fares to the Railway Ministry which will taken a final call on fixing tariff.
• Lacks autonomy. Its recommendations are not binding on the government.
  

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Indian Express

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Not just happy endings

Context

Education in India must discuss depression and mental health issues.

What is depression?

Depression is a common but serious mood disorder. Depression is a state of low mood and aversion to activity that can affect a person’s thoughts, behavior, feelings, and sense of well-being.

Signs and symptoms

• Persistent sad, anxious, or “empty” mood
• Feelings of hopelessness, or pessimism
• Irritability
• Feelings of guilt, worthlessness, or helplessness
• Loss of interest or pleasure in hobbies and activities
• Decreased energy or fatigue
• Difficulty concentrating, remembering, or making decisions
• Difficulty sleeping, early-morning awakening, or oversleeping
• Appetite and/or weight changes
• Thoughts of death or suicide, or suicide attempts
• Aches or pains, headaches, cramps, or digestive problems without a clear physical cause.

Statistics

• Depression and suicides resulting from it is the second leading cause of morbidity amongst 15 to 29 year olds globally.
• Every year, more than 8,00,000 people die having committed suicide.

Other issues

• Unrecognized depression leads to suicide or substance abuse. Depression is part of a psychiatric disorder.
• Social pressures are rising. Depression has become a taboo subject.

Suggestions

• We need to understand the complexities, their causes and where they lead us.
• Once we understand that, we will have acceptance and it will be easier to discuss about this.
  

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Live Mint

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