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19
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January 2011

1. Cabinet to consider 51 p.c. FDI in multi-brand retail
With the recent uproar on rising food and vegetables prices providing a handy trigger, the
Manmohan Singh Government is all set to give its approval to 51 per cent Foreign Direct
Investment (FDI) in the multi-brand retail sector with the Commerce and Industry Ministry
likely to move a Cabinet note. The move to open up the multi-brand retail sector, a politically
sensitive issue, comes following feedback received from State governments which have
argued that allowing foreign investment in retail would improve the required infrastructure and
provide a remunerative price to farmers for their produce. The Government is proposing some
safeguards to ensure that non-serious players and fly-by-night operators are not entertained.
To this end, any player who seeks entry into the Indian market will be required to invest a
minimum of Rs. 500 crore. The Government is also seeking certain other investment
commitments, including establishing back-end cold chain outlets.

2. Centre's new proposal on MNREGS wage
Firm in its decision not to grant statutory minimum wages to MNREGS workers, the United
Progressive Alliance government now seems to be considering a statutory national floor level
wage as a way out of the impasse. Planning Commission deputy chairman Montek Singh
Ahluwalia made it clear that the MNREGS wage rate hike offered by Prime Minister Manmohan
Singh was final but added that the government would abide by any court ruling favouring
application of minimum wages for them.

3. Governor refers Tiwari issue to Supreme Court
Maharashtra Governor K. Sankaranarayanan made a reference to the Supreme Court for the
removal of State Information Commissioner Ramanand Tiwari, who is embroiled in the Adarsh
Cooperative Housing Society scam. Mr. Sankaranarayanan made the reference under Section
17 (1) of the Right to Information Act. The section pertains to the removal of State Chief
Information Commissioner or State Information Commissioner.

4. Geospatial technology meant for public welfare: Sibal
A bill to establish a National Geospatial Data Authority would be introduced in the budget
session of Parliament, Union Minister of Science and Technology Kapil Sibal announced. The bill
was being discussed at inter-ministerial meetings and would be introduced once the Cabinet
approved it, he told after inaugurating a four-day meet of Geospatial World Forum, 2011.
Geospatial technology was a priority area. It was a powerful tool that rationalises and
contextualises information, he pointed out. Mr. Sibal said the proposed Authority would
facilitate the setting up of an independent regulator for issuing licenses and regulating the
activities of the geospatial sector. The Survey of India had embarked on a project of creating a
national topographic database on a 1: 10,000 scale for rural areas. Simultaneously, the project
would generate 1:2,000 scale maps for 800 cities and 1: 1,000 scale maps for metros. The
exercise, to be taken in a public-private partnership mode, would be completed in three years.

5. Lavasa illegal but will OK it on our stiff terms: MoEF
The Environment Ministry said the Lavasa lake city project outside Pune is unauthorised, and
directed Lavasa Corporation Ltd (LCL) to maintain status quo, and carry out no
construction activity at the site. However, given the major investments and rights in Lavasa,
and the employment that has been generated, it is prepared to consider the project, subject
to tough terms and conditions set by it, the Ministry said. The LCL project is in violation of
the Environmental Impact Assessment (EIA) notifications of 1994.the Ministry said

6. FSSAI guidelines for healthy food in midday meal on anvil
With several incidents of food poisoning due to sub-standard midday meals served to students
coming to the fore and in view of school cafeterias selling junk food, the Food Safety and
Standards Authority of India (FSSAI) is in the process of framing a set of guidelines to ensure
standard norms for nutritious diet to all. The proposed guidelines will be based on scientific
parameters and reliable survey data on the food habits of schoolchildren, besides food
handling and hygienic practices in school kitchens.



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7. India lends support to Nepal's leadership on peace process
Foreign Secretary Nirupama Rao held high-level consultations on the first day of her official
visit to Nepal, holding meetings with President Ram Baran Yadav and Prime Minister Madhav
Kumar Nepal, among others. During her meeting with Nepal PM, Rao conveyed India's strong
support to a satisfactory culmination of the peace process and strengthening of multi-party
democracy in Nepal.

8. USAID favours Sulabh model of sanitation for Pakistan
The USAID, a key body of the United States providing economic and humanitarian assistance
worldwide, has recommended Sulabh model of low-cost sanitation for Pakistan. Pakistan-based
senior officer of the USAID, Marilyn Wyatt, who visited the Sulabh International campus,
appreciated the efforts of the NGO headed by Bindeshwar Pathak in promoting low-cost
sanitation not only in India, but also in cities across south and central Asia.

9. Pakistan seeks quick resolution of Kishenganga dispute in arbitration court
Pakistan sought a quick resolution of its dispute with India on the 330-MW Kishenganga
hydropower project in Jammu and Kashmir and wanted an immediate site-inspection by the
International Court of Arbitration during its preliminary hearing on January 14 at The Hague.
Pakistan did not seek an interim stay on India's Rs. 3600-crore project as in the case of the
Baglihar Dam dispute, which went to a neutral expert but did seek an early decision before
the project construction reached an irreversible stage. Both India and Pakistan will have to
spend an estimated $2.5 million each towards the settlement of the dispute that was taken by
Islamabad to the international arbitration court that was specially set up as per the provisions
of the Indus Waters Treaty of 1960.

10. $1.5-million Chinese aid for Sri Lanka
China would provide 10 million RMB ($1.52 million) in emergency humanitarian relief to flood-
hit Sri Lanka. Flooding has left at least 40 people dead and more than one million people
displaced in the north, east and central parts of the country. Chinese Foreign Ministry
spokesperson Hong Lei said in addition to the government's $1.52-million relief package, the
Red Cross Society of China would provide cash assistance of $30,000.

11. Crisis hits new Tunisian government
Three opposition Ministers inducted in the day-old national unity government have resigned,
escalating further Tunisia's deep political crisis which began with the collapse of 23-year old
dictatorship of the former President, Zine El Abidne Ben Ali. The three who resigned Anouar
Ben Gueddour, Abdeljelil Bedoui and Houssine Dimassi belong to the General Union of
Tunisian Workers (UGTT). The UGTT played a key role in bringing down the Ben Ali regime by
participating in month-long protests which began on December 17 after a university graduate
driven to selling vegetables set himself on fire in the city of Sidi Bouzid. The announcement of
the national unity government by Prime Minister Mohammed Ghannouchi, which saw the
Constitutional Democratic Rally (RCD) Party holding on to the plum Foreign, Interior, Defence
and Finance ministerial posts, apparently did not go down well with the protesters.

12. Medvedev backs Palestinian state
Russian President Dmitry Medvedev reaffirmed Moscow's commitment to an independent
Palestinian state with east Jerusalem as its capital, on a visit to the West Bank. Russia stated
its position on this issue in the 1980s, in the last century, and we fully support the inalienable
right of the Palestinian people to the establishment of an independent, united and viable state
with east Jerusalem as its capital, said Mr. Medvedev on his first-ever visit to the Palestinian
territories.

13. Demand to ban rubber futures rejected
Rejecting the demand of tyre manufacturers to ban futures trading in rubber, Managing
Director and CEO of National Multi Commodity Exchange of India (NCME) Anil Mishra has urged
trye-makers to actively get involved in futures market rather than keeping away from it. Not
many from the tyre industry are seen taking the calculated method to recover their costs and


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January 2011

participate in the futures trade in rubber. Instead of doing so, they are blaming the futures
trading in the commodity as one of the key reasons for price escalation, which is not correct,
he said.

14. Govt mulls strict norms for wealth management advisers
The Government is pooling in its regulatory resources to frame a comprehensive rule-book for
wealth management advisors and has sought inputs for the same from RBI, Sebi and other
financial sector regulators. The move follows an estimated Rs 400-crore fraud allegedly
perpetuated by a relationship manager at a Gurgaon branch of Citibank and initial probe into
the matter pointing towards various loopholes in existing regulations. Besides RBI and Sebi,
other financial sector regulators, namely commodity regulator FMC, insurance watchdog IRDA
and pension fund regulator PFRDA, will also be roped in to formulate the all-encompassing
wealth management guidelines.

15. TRAI to start consultation process on 4G by June
Telecom regulator TRAI said it would come out with a consultation paper on fourth generation
mobile (4G) services by the middle of this year. The fourth generation or 4G technology offers
download at faster speed known as ultra-broadband and high definition video on demand
among other such services. 4G or LTE is a successor to 3G and 2G standards, with the aim to
provide a wide range of data rates up to ultra-broadband (gigabit-speed) Internet access to
mobile as well as stationary users. TRAI would look into the various aspects, including
spectrum band to be allotted for 4G service and quantum and modes of allotment to the
operators.

16. Pathan powers India to a thrilling win vs South Africa
Yusuf Pathan's pyrotechnics helped India recover from a top-order collapse and eke out a
thrilling two-wicket win over South Africa in the third cricket one-dayer. Pathan proved that
fortune favours the brave during his breezy 50-ball 59-run knock as he took his chances and
hammered the South African bowlers, especially the spinners, to all parts of the ground.
Chasing 221 for win, Pathan teamed up with Suresh Raina (37 off 47) to bring India back in
contention with less than a run-a-ball 75-run sixth wicket stand after the visitors were reeling
at 93 for five at one stage.

17. 2nd test drawn, Pakistan clinch series win vs NZ
Pakistan clinched a 1-0 series win and its first test series victory for five years by securing a
draw against New Zealand in the second test. Chasing 274 for victory on the final day, Pakistan
looked well placed to push for a 2-0 series clean sweep when it moved to 160-4 at tea.
However, Pakistan was unwilling to risk a rare series victory and took a no-risk approach in the
final session to ensure a draw.