Friday, 26 April 2019

GENERAL UPDATES 27.04.2019





CRYPTO CURRENCY IS 'PONZI SCHEME', SHOULD BE BANNED IN INDIA: GOVT OFFICIAL

Crypto currency is a ponzi scheme and should be banned to protect the interest of investors, a government official said Friday. Amid continuing debates about crypto currencies such as Bitcoins, the Investor Education and Protection Fund (IEPF) Authority, which comes under the corporate affairs ministry, is in favour of banning trade in such currencies. Crypto currencies are based on blockchain technology and there are concerns about its viability in the long-term and risk to investors, especially considering steep fluctuations in the prices. These are digital units in which encryption techniques are used for trading and these currencies operate independently of a central bank. When it comes to investor protection, the IEPFA has to take a stand against certain things. Against ponzi schemes, we are taking a stand. We think that crypto currency is a ponzi scheme and it should be banned, Anurag Agarwal said. Agarwal, also a Joint Secretary in the corporate affairs ministry, said the government would also take a stand on the issue. While the government is yet to take a final call on whether crypto currencies should be banned or not, the Reserve Bank of India (RBI) last year tightened the rules to discourage use of such currencies. Agarwal said the authority plans to start gathering primary data from persons who have put in their money in chit funds and deposit-taking schemes. A mobile application, as well as an online platform for such investors, would be introduced in 10 days, he added. Such a system would help in having an understanding about entities taking deposits as well as curb illicit money raising activities.
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RBI EXTENDS OMBUDSMAN SCHEME TO NON-DEPOSIT TAKING NBFCS

Provides a cost-free and expeditious complaint redressal mechanism relating to deficiency in the services by NBFCs covered under the Scheme. As announced in the Monetary Policy Statement dated 4 April 2019, the Reserve Bank of India (RBI) has extended the coverage of Ombudsman Scheme for Non-Banking Financial Companies (NBFCs), 2018 (the Scheme) to eligible Non Deposit Taking Non Banking Financial Companies (NBFC-NDs) having asset size of Rs 100 crore or above with customer interface vide Notification dated 26 April 2019. The Non Banking Financial Company-Infrastructure Finance Company (NBFC-IFC), Core Investment Company (CIC), Infrastructure Debt Fund-Non-banking Financial Company (IDF-NBFC) and an NBFC under liquidation, are excluded from the ambit of the Scheme. The Scheme was launched on 23 February 2018 for redressal of complaints against NBFCs registered with RBI under Section 45-IA of the RBI Act, 1934 and covered all deposit accepting NBFCs to begin with. It provides a cost-free and expeditious complaint redressal mechanism relating to deficiency in the services by NBFCs covered under the Scheme. The offices of the NBFC Ombudsmen are functioning at four metro centres viz. Chennai, Kolkata, Mumbai and New Delhi and handle complaints of customers in the respective zones.
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120 STARTUPS GET PATENTS UNDER EXPEDITED EXAMINATION PROCESS: DPIIT SECY

As many as 120 start-ups have been granted patents under the expedited examination process for applications since 2016 when the facility was introduced, a top official said Friday. A total of 450 start-ups have filed applications under this facility. Ramesh Abhishek said that the government is taking several steps such as hiring more manpower to reduce the time for examination of IPR (intellectual property rights) applications. Under the expedited examination facility, a total of 1,021 applications were received and 351 patents were granted by the Indian IP Office. The facility can be availed by start-ups that meet stated criteria on payment of stipulated fees. We have taken several steps but we need to do more on strengthening the start-up ecosystem in the country, Abhishek said. He also said that the time for the first examination of trademarks applications has been reduced to about one month from 13 months earlier. We are using technology and artificial intelligence for the examination of IP applications, Abhishek added. The department has floated a draft rule to amend the Patents Rules, 2003 under which a patent application filed by a female innovator will be examined expeditiously with a view to promoting women entrepreneurship in the country. According to the draft rules, if the applicant or at least one of the applicants in a group seeking patent is a female, that application would get an expedited examination by the Indian Patent Office.
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ATM-CUM-DEBIT CARD COMPLAINTS INCREASE 50% IN FY18: RBI DATA

About 15.1 per cent of consumers have filed the complaints with the Reserve Bank of India (RBI) in connection with the issues related to the usage of ATM-cum-debit card and around 7.7 per cent complaints were filed with regard problems arising with the usage of credit cards during the financial year 2017-18, according to the RBI data released on Wednesday. Complaints relating to ATM/debit cards increased by 50 per cent from the last fiscal year. Of the total number of ATM/debit cards complaints, a major sub-category was ‘Account debited but cash not dispensed by ATMs’ which accounted for almost 60 per cent of the ATM-related complaints, RBI said. The complaints relating to digital transactions (mobile, internet, ATM and credit cards) accounted for 28 per cent of total complaints in FY18, up by 9 per cent from the previous year. Other major consumer complaints that were received in the said duration include 22.1 per cent for ‘non-observance of fair practices code’, 6.8 per cent for ‘failure to meet commitments’, 5.2 per cent for mobile and electronic banking, 5 per cent for ‘levy of charges without prior notice’, 4.8 per cent for ‘pension payments’, 4.1 per cent for ‘deposit accounts’ and 3.8 per cent for ‘loans and advances’, etc.
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RBI ALLOWS FPIS INVESTMENT IN MUNICIPAL BONDS

FPI investment in municipal bonds shall be reckoned within the limits set for FPI investment in State Development Loans. As a measure to broaden access of non-resident investors to debt instruments in India, the Reserve Bank of India (RBI) has permitted Foreign Portfolio Investors (FPI) to invest in municipal bonds. FPI investment in municipal bonds shall be reckoned within the limits set for FPI investment in State Development Loans (SDLs). All other existing conditions for investment by FPIs in the debt market remain unchanged. Necessary amendments to Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017 have been notified by the Government on 18 April 2019.
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FINANCE MINISTRY RATIFIES 8.65% INTEREST RATE ON EPF FOR 2018-19

The Finance Ministry has approved 8.65% rate of interest on Employees' Provident Fund (EPF) for 2018-19 as decided by retirement fund body EPFO, benefitting more than 6 crore formal sector workers. The Department of Financial Services (DFS), a wing of Finance Ministry, has given its concurrence to Employees Provident Fund Organisation's (EPFO) decision to provide 8.65% rate of interest for 2018-19 to its subscribers, a source privy to the development told PTI. The DFS has approved the proposal subject to fulfilment of certain conditions related to efficient management of the retirement fund, the source said further. After the Finance Ministry concurrence, the Income Tax Department and the Labour Ministry would notify the rate of interest for 2018-19. Thereafter the EPFO would give directions to its over 120 field offices to credit the rate of interest into subscribers' account and settle their claims accordingly. According to the EPFO estimates, there would be a surplus of 151.67 crore after providing 8.65 per cent rate of interest for 2018-19 on EPF. There would have been a deficit of 158 crore on providing 8.7 per cent rate of interest in EPF for last fiscal. That is why the body decided to provide 8.65 per cent rate of interest for 2018-19.
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TRAI EXTENDS COMMENTS DEADLINES FOR OSP REGISTRATION PAPER

The telecom regulator has extended the deadline for stakeholder comments and counter-comments on its discussion paper seeking to upgrade the regulatory structure around registration of other service providers (OSPs), offering services such as tele-banking, tele-medicine, tele-education, e-commerce, call centre, and other IT-enabled services. The Telecom Regulatory Authority of India (Trai) in a statement Friday, said it has sought comments by May 20 instead of April 29, and counter-comments by June 3 instead of May 13, following requests from stakeholders. In a consultation paper, floated on March 29, Trai had sought industry views on aspects such as validity of such registration to the charges, connectivity, interconnectivity aspects and even security conditions. Trai had also invited stakeholder views on whether the definition of application service in context of OSPs needs to be changed and whether the application services which are purely based on data/ internet should be covered under application service for the purpose of defining OSP. The Trai paper had said that as per current definition, an OSP is a company providing application services such as telebanking, telemedicine, tele-education, tele-trading, ecommerce, call centre, network operation centre and other IT enabled services by using telecom resources or infrastructure provided by licensed telecom operators. Trai had also sought to know if any other regulatory framework – rather than the current registration process for a fee - be adopted for OSPs so that the purpose of registration specified by government is met. The consultation paper had come in the backdrop of the telecom department’s (DoT) reference last September seeking a recommendation from the regulator on the matter. In a letter to the regulator last year, DoT had underlined that the time had come to devise a technology-neutral framework so as to promote innovations for setting up the OSP service delivery platform in a most cost-efficient manner, for faster promotion of these service providers. Trai is also in the midst of a separate consultation paper on whether to regulate apps that provide communication services, such as WhatsApp and Skype.
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TRAI WITHDRAWS 2012 ORDER ON ‘WANGIRI’ CALLS

The Telecom Regulatory Authority of India (TRAI) has withdrawn its earlier order on Wangiri calls, following an appeal by some of the service providers. The issues start with scammers hiring a premium-rate number from a telecom provider and giving missed calls to unsuspecting people. As the latter calls back, they pay a higher charge, and a part of the money goes to the scammer. Such calls are termed as Wangiri, a Japanese word literally meaning one (ring) and cut. In its September 18, 2012, order, TRAI had directed telecom operators not to activate international long distance calling on pre-paid cards without taking the user’s explicit consent. The regulator had also told operators to take pre-paid users’ permission for ISD services within 60 days. Industry body COAI had approached the telecom tribunal seeking quashing of the TRAI order, citing revenue loss from genuine long-distance callers. In its latest direction, dated April 22, the regulator has decided withdraw its earlier order. The COAI has proposed a technical solution aimed to tackling the menace of such calls. In India, where nearly 97 per cent of users are on pre-paid connections, international long distance facility provided as default. While ministry sources confirmed the development, they also said the issue is currently before the TDSAT, and the tribunal has to take a final call. TRAI had been getting complaints from users about calls and SMS from international numbers informing them about winning prizes or lotteries. The scamsters encourage consumers to call a premium tariff number, at times attracting charges as high as 200 a minute, to claim the prize.
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NO CLARITY FROM BANKS ON PAYING SALARY DUES: JET CEO

Hinting that Jet Airways employees are unlikely to receive their salary dues till the stake sale process is completed, Vinay Dube, told airline employees that the lenders have so far provided no clarity on releasing emergency funds required to meet salary dues. In a letter to the employees, Dube also wrote that the consortium of lenders to the now-grounded Jet Airways has put the blame for the airline's collapse on shareholders, suggesting that the latter could have agreed to a resolution plan a long time ago. While we will continue to support the lender-led bid process in our effort to leave no stone unturned it pains us to communicate that no clarity or commitment on salaries has been provided by any of our stakeholders, Dube said. He also described the company's efforts to take up the issue with the government at the highest levels, seeking its intervention and assistance, which, however, had not yielded positive results so far. While on the one hand, we are being told to preserve the value of Jet Airways during the bid process, our colleagues, who are the very factor and value of the airline, have no choice to find employment elsewhere, the CEO said. Dube told the employees that it has tried to convince the state-run State Bank of India (SBI)-led consortium to release some funds for the over 20,000 employees who have not received their dues for months, while the bank-led resolution process for the airline is on. We have old them repeatedly that our employees are facing grave hardships owing to non-payment of their salaries and that if this were to continue any longer, our employees will have no option but to find employment elsewhere, he said. Unfortunately, the banks have said that they are unable to make any salary commitments. We face this reality despite our best efforts to portray the very real suffering that is being endured by each one of you. The Jet CEO also highlighted that fact in numerous board meetings of the airline payment of salary arrears was deliberated with no favourable outcome.
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JET AIRWAYS HAS LIABILITIES AROUND RS 25K CRORE, SPICEJET TOO SMALL TO TURN AROUND AIRLINES, SAYS AJAY SINGH

Ajay Singh, chairman and managing director of SpiceJet, has said that the low-cost airline was too small to take over and turnaround Jet Airways, which needs a deep-pocketed strategic investor. Singh also said that SpiceJet has leased 28 aircraft, including Boning 737-800 NG and Bombardier Q400s, from Jet Airways’ grounded fleet so far and plans to add 15 more in the coming weeks. He said that SpiceJet has hired 1,000 employees, including pilots and cabin crew, from Jet which temporarily suspended all operations from April 17. We have signed LoI (letters of intent) for 28 Jet aircraft and we are starting to induct those aircraft tomorrow. We are in discussion to add 15 more Jet aircraft so it should be around 40 aircraft in all. These planes are going to need people to fly them and who better to fly them than people who are already trained to do it. We have recruited about 1,000 of Jet’s staff and as and when we require more people we will do it, Singh told. When asked by the channel if SpiceJet would be interested in bidding for Jet, Singh said, SpiceJet is too small to turnaround operations like Jet Airways. Jet Airways needs someone with deep pockets to turn around Would not want SpiceJet to have any financial engagement in Jet Airways bidding process. Singh said SpiceJet had evaluated Jet during the preliminary round of bidding but it did not move forward due to huge liabilities of the full-service carrier. He pegged Jet’s total liabilities at more than Rs 25,000 crore, which includes Rs 14,000 crore of dues to vendors. Jet’s gross debt at the end of December 2018 quarter stood Rs 7,654 crore. We were among the first to be approached to participate in the bidding process for Jet. The big deterrents are really the big liabilities that Jet has accrued over this time frame. In our opinion, those liabilities are close to Rs 25,000 crore or even higher. This is our estimate we have seen the number quite carefully. There were vendor liabilities close to Rs 14,000 crore and advance from sale of seats which will have to be paid back to customers as well, Singh pointed out. Jet’s lenders headed by State Bank of India are currently holding a bidding process to sell stake in the grounded carrier and have shortlisted four suitors — Jet’s equity partner Etihad Airways, India’s sovereign wealth fun NIIF, US-based TPG Capital and Indigo Partners. Singh said the airline will be offering business class seats to passengers on the newly-leased Boning 737-800 NG aircraft from May 7. The carrier will be inducting 22 such planes to be deployed on the domestic routes. Singh also refuted rivals’ claim of unfair distribution of Jet’s slots to SpiceJet, saying the government is trying to protect connectivity to less popular sectors by allowing only new capacity to be deployed in prime slots vacated by Jet. It makes very little sense for people to start pulling out aircraft, let’s say from the North-East or other such areas and use those aircraft on Delhi and Mumbai slots. What the government is saying that operate your network as you were doing and to take the space of Jet Airways network please get new capacity. I think that is only fair because doing anything else would mean you would deprive someone else (region) of flights, he added. IndiGo has written a letter to the civil aviation ministry on April 24 alleging inequitable distribution of landing and take-off slots to a particular carrier.
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NO HIKE IN POWER TARIFF FOR THIS YEAR, SAYS GUJARAT ELECTRICITY REGULATORY COMMISSION

The state's power regulator Gujarat Electricity Regulatory Commission (GERC) said on Thursday that there would not be any hike in power tariff for this year. This is the third straight year when tariff has not been hiked, but officials clarified that as in the past, power bills would go up in case of fuel surcharge going up. GERC issued the power tariff order on petitions filed by Torrent Power and four state owned power distribution companies on Wednesday, a day after voting for Lok Sabha elections. There is no change in power tariff for this year, Anand Kumar, said. He said that for residential consumers, number of slabs have been reduced to four by merging the slabs of 100-200 units and 200-250 units into one slab of 100-250 units. The new tariff order would come into force from May 1, he said further. In a release, GERC said that for the four government discoms, it had approved power purchase cost of Rs 4.32 per unit (Rs 4.22 last year), and base fuel and power purchase price adjustment charge (fuel surcharge) of Rs 1.61 per unit (Rs 1.49 last year). For Torrent Power, power purchase cost of Rs 4.80 per unit (Rs 4.66 last year), and base fuel surcharge of Rs 1.38 (Rs 1.23 last year) was approved. Since there is no change in the methodology for calculating fuel surcharge, there will not be any increase in electricity bill due to change in base FPPPA charge, said a senior GERC official. However, the bill would increase in case of higher fuel prices rise, as it would necessitate upward revision in fuel surcharge, he added.
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PEPSICO OFFERS OUT-OF-COURT SETTLEMENT TO SUED GUJARAT POTATO FARMERS

The legal tussle between four potato farmers in Gujarat and global food and beverages giant PepsiCo India Holdings Pvt Ltd (PIH) MAY be headed for an out-of-court settlement. Alleging Intellectual Property Rights (IPR) infringement, PepsiCo India had sued the farmers from Sabarkantha district for buying seeds and selling potato of the FL 2027 variety, also known as FC-5, which the former has registered under the Protection of Plant Varieties and Farmers’ Rights (PPV&FR) Act, 2001. The variety is used for PepsiCo's chips product Lay's. However, on Friday, during a hearing at the commercial court in Ahmedabad, the legal counsel representing PepsiCo suggested a possibility of out-of-court settlement. The counsel told judge M C Tyagi that PepsiCo could withdraw the case if the farmers were willing to sign an agreement for buying the registered variety of FC-5 potato seeds and selling the produce to the company only. It has been suggested that the farmers could give an undertaking that they would never buy and sow the said registered variety of FC-5 potato seeds in future. PepsiCo is learnt to have engaged 1,200 farmers in Gujarat for sowing and producing the FC-5 variety of potato for its snacks division. The out-of-court settlement would eventually depend on the willingness of the four farmers to accept the same or not. In the meantime, the legal counsel representing the farmer sought time till June 12 for filing written submissions based on the allegations made by PepsiCo. PepsiCo's legal counsel too sought time till June 12 for filing rejoinders to the farmers' submissions. In the interim, the court's previous order of a stay on the farmers from growing and selling the potatoes continues till the next hearing on June 12.
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CENTRE SANCTIONS RS 4,000 CR FOR WOMEN SAFETY PROJECTS UNDER NIRBHAYA FUND

The Centre has sanctioned nearly Rs 4,000 crore for various women safety projects under the Nirbhaya Fund that include financial assistance to rape and acid attack victims and setting up of special police units for women and children. According to a Home Ministry document, the highest Rs 2,919.55 crore has been sanctioned under the ‘Safe City Project’ being implemented in eight cities — Delhi, Kolkata, Mumbai, Chennai, Hyderabad, Bengaluru, Ahmedabad and Lucknow — to provide safety to women in public places. A total of Rs 200 crore has been released for the Central Victim Compensation Fund. The key objectives of the project is to support the victims of rape, acid attacks, crime against children, human trafficking etc, it said. All these projects are being implemented under the central government’s ‘Nirbhaya Fund’, which was named after the 2012 Delhi gang-rape victim, a Home Ministry official said. The ministry has sanctioned Rs 321.69 crore under the Emergency Response Support System (ERSS) to provide a pan-India single emergency response number — 112. The project has already been operationalised in 20 States and Union Territories, according to the document. A total of Rs 23.53 crore has been sanctioned for setting up of the Special Unit for Women And Children (SPUWAC) and the Special Unit for North East Region (SPUNER) at Nanakpura in Delhi. Both the SPUWAC and the SPUWAC have already become operational, it said. A state-of-the-art DNA laboratory is being set up at the Central Forensic Science Laboratory in Chandigarh at a cost of Rs 99.76, while projects have been sanctioned for setting up or strengthening of the DNA facilities in Forensic Science Laboratories in 12 states at a cost of Rs 131.09 crore, as per the document. The Home Ministry has also sanctioned Rs 7.09 crore for training of investigation, prosecution and medical officers and Rs 5.07 crore for providing facility of social workers and counsellors at the district and sub-divisional police station level in Delhi, it said.
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FSSAI PARTNERS WITH A US FIRM TO IMPROVE FOOD TESTING

A new food testing facility coming up in Ghaziabad can make the process of finding adulterants and contaminants in food easier and more accurate. The Food Safety and Standards Association of India (FSSAI) has partnered with Thermo Fischer Scientific, a US based biotechnology firm, to address food safety and food quality concerns in India. The objective of the partnership is to facilitate and build world class food testing capabilities in India. Thermo Fisher Scientific will offer skilled analysts to conduct high quality food testing and to also train food scientists. The CSC is equipped with latest innovations in liquid, gas and ion chromatography, mass spectrometry, and trace element analysis. The upcoming Customer Solution Center (CSC) at Ghaziabad is equipped with advanced analytical solutions that will overcome a wide range of challenges presently faced by food safety scientists. For example, detecting organic pollutants like brominated flame retardants and chlorinated paraffin in food. The CSC will be equipped to find these pollutants within a routine food safety analysis laboratory environment, says Amit Chopra. Similarly, finding and accurately measuring trace pesticides on apple skins and micro concentrations of lead and nickel in foods will also be possible at this new food testing facility.
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MUMBAI UNIVERSITY PASSES A RS 695 CR BUDGET

Mumbai University passed a budget of Rs 695 crore on Thursday at a senate meeting held at its Fort campus. The budget covers a cell for international collaboration, women's welfare schemes, incubation centre and others to bring Mumbai University among 100 best universities. The Budget which which Vice Chancellor Suhas Pednekar approved under his chairmanship has shown a deficit of 68.81 crores indicating the sad state of varsity's finances currently. The Budget's priority is clearly aimed at investing funds in initiatives that will help the university in bettering it's ranking. The initiatives include promoting research culture, to lauch a new prize for groundbreaking research, scholarship to M.Phil students, introduce vice chancellor fellows, incubation centers, welfare schemes for women, organising national and international study tours for management council, academic council and senate members of Mumbai University. The student centric budget was approved unanimously in the assembly today by emphasizing university reforms with special budget provisions based on such innovative initiatives like the Bal Apte Chapter Centers. In addition, special priority has been given to the planned constructions in 2019-2020, in which museum complex building, 100 guest hostels and hostel for 500 girls is included. The varsity is also banking on the fact that this year it has improved it's National Institutional Ranking Framework (NIRF) to 81 rank among University category.
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2.9 MILLION CHILDREN IN INDIA MISS FIRST DOSE OF MEASLES VACCINE: UNICEF

India has 2.9 million children who have missed out on the first dose of measles vaccine between 2010 and 2017 despite over 80 per cent of immunisation coverage, the UNICEF said on Thursday. India, with its large annual birth cohort of 25 million, is followed by Pakistan and Indonesia - 1.2 million each, and Ethiopia 1.1 million, it said, adding that the situation is critical in low and middle-income countries. In 2017, for example, Nigeria had the highest number of children under one year of age who missed out on the first dose of vaccine, at nearly 4 million, the United Nations child health body said. The United States topped the list of high-income countries with most children not receiving the first dose of the measles vaccine between 2010 and 2017 at more than 2.5 million. It is followed by France and the United Kingdom, with over 600,000 and 500,000 unvaccinated infants, respectively, during the same period. An estimated 169 million children missed out on the first dose of the measles vaccine between 2010 and 2017, or 21.1 million children a year on an average, the UNICEF said. Widening pockets of unvaccinated children have created a pathway to the measles outbreak around the world. The ground for the global measles outbreaks we are witnessing today was laid years ago, UNICEF Executive Director Henrietta Fore said. The measles virus will always find unvaccinated children. If we are serious about averting the spread of this dangerous but preventable disease, we need to vaccinate every child, in rich and poor countries alike, Fore said. In the first three months of this year, more than 1,10,000 measles cases were reported worldwide - up nearly 300 per cent from the same period last year. An estimated 1,10,000 people, most of them children, died from measles in 2017, a 22 per cent increase from the year before, the body said in a statement. Two doses of measles vaccine are essential to protect children from the disease. However, due to lack of access, poor health systems, complacency, and in some cases fear or skepticism about vaccines, the global coverage of the first dose of the measles vaccine was reported at 85 per cent in 2017, a figure that has remained relatively constant over the last decade despite population growth. Global coverage for the second dose is much lower at 67 per cent. The World Health Organization (WHO) recommends a threshold of 95 per cent immunisation coverage to achieve so-called 'herd immunity'. Worldwide coverage levels of the second dose of the measles vaccines are even more alarming. Of the top 20 countries, with the largest number of unvaccinated children in 2017, nine have not introduced the second dose, it said in the statement. Twenty countries in sub-Saharan Africa have not introduced the necessary second dose in the national vaccination schedule, putting over 17 million infants a year at higher risk of measles during their childhood. Measles is far too contagious, said Fore, adding that it is critical not only to increase coverage, but also to sustain vaccination rates at the right doses to create an umbrella of immunity for everyone.
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INDIA NEEDS TO CREATE MILLIONS OF JOBS ANNUALLY

India’s working age population or those above the age of 15 is seen to be expanding by 1.3 million a month and therefore, the country needs to create millions of jobs a year but the number depends on the estimates of the employment rate, says a new book. Jobonomics: India’s Employment Crisis and What the Future Holds by Goutam Das goes beyond the data or the lack of it to analyse the story of India’s job and income scenario through real life stories. It shifts the discussion from the Centre’s role in job creation to the states’ responsibilities and provides insight on how they need to go about it. According to the author, job creation remains Prime Minister Narendra Modi’s biggest challenge. For that matter, it is the biggest challenge for any government in 2019 and beyond, he says. Das is of the view that it is difficult to come across reliable data about jobs and job creation. Most of the government surveys either have design flaws or are released once in many years. One audacious private effort by the CMIE at tabulating unemployment – a household survey to measure unemployment that it started in 2016 – isn’t quite liked by many in the government, he writes in the book, published by Hachette. The numbers aren’t encouraging. The employment needle, according to the CMIE, hasn’t moved in the past year. The number of people employed in 2017-18 was 406.2 million, 0.1 per cent lower than the year before. The employment rate, or the proportion of working age population that is employed, slid in 2017-18 to 41.45 per cent compared to 42.59 per cent the year before, he goes on to add. He terms the government’s unemployment estimates as more conservative, but feels its surveys are not really comparable to those of the CMIE, whose computations are based on the status of the respondents as on the day of the survey or as on the preceding day. He says an unemployment rate of 5 per cent or slightly lower appears manageable right now. It does not indicate a job crisis. But consider this: more than a million young people enter the working age population in India every month. The World Bank’s South Asia Economic Focus Spring 2018 report states that between 2015 and 2025, India’s working age population, or those above the age of 15, is seen to be expanding by 1.3 million a month. India, therefore, needs to create millions of jobs a year – exactly how many millions depends on the estimates of the employment rate, he suggests. Manufacturing, according to the book, is getting more technology intensive and so is the services industry. The ability of these two sectors to absorb people migrating from the unproductive and less remunerative farm sector is on the decline. Robots and bots are also decimating the higher-paying white-collar jobs. Technological disruptions imply that jobs of the future would need people with higher technical skills, it says. The book also seeks to connect the dots on what’s coming and why the economy’s ability to absorb so many into the workforce every year is a slippery slope. The first section of the book is about why the demand for jobs could shrink in the future, and how it could accelerate the pay crisis. The second section narrates the problems with the supply side of India’s human capital and the conversations around poor primary and vocational education, health and attitudes. It also explores the implications that the shrinking demand for jobs and our poorly prepared human capital will have on the country. The final section narrates success stories or best practices. Some of the ideas are scalable, others not so much.
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EXPERTS REJECT CLAIMS OF PESTICIDES CAUSING CANCER IN PUNJAB'S MALWA REGION

An industry body and experts Friday rejected claims that use of pesticides was the only reason for a spike in cancer deaths in Malwa region of Punjab, stressing that the life-threatening disease can be caused by multiple factors. A team comprising eminent toxicologist and researchers at an outreach event organised by the Crop Care Federation of India along with the Centre for Environment and Agriculture mentioned how other reasons were causing cancer deaths, a release said. When pesticides are applied in accordance to the Good Agricultural Practices (GAP), they do not pose any health risks and India has a robust regulatory system in this regard, Crop Care Federation of India Chairman (Technical Committee) Ajit Kumar said. Toxicologist Tejas Prajapati emphasised that socio-economic factors affect cancer rates and mortality and will become a bigger challenge in the future. Cancer rates, cancer types and cancer mortality vary widely around the world and at least environmental or lifestyle risk factors that account for 50 per cent of all cancer deaths, he said, adding that tobacco exposure is by far the most prominent reason for cancer deaths. In this context, strategies to reduce these risk factors will have a tremendous impact on reducing the burden of cancer globally, he added.
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SUPREME COURT DENIES MEDICAL INSURANCE CLAIM TO MAN

Noting that a contract of insurance involves utmost good faith, the Supreme Court has denied medical insurance claim of a man who did not disclose past history of a disease he was suffering while buying the policy. A Bench of Justice D.Y. Chandrachud and Justice Hemant Gupta said: The failure of the insured to disclose the past history of cardiovascular disease was a valid ground for repudiation. Manish Gupta had obtained a mediclaim policy from Life Insurance Corporation of India (LIC) in June 2008. The policy was issued under the category of Non-Medical General (NMG) for a sum of 1.6 lakh. The proposal form required a disclosure of health details and medical information. Among them was whether Mr. Gupta had suffered from cardiovascular disease like palpitations, heart attack, stroke or chest pain. He denied having any of the above ailments in the form. The next year, he submitted a claim after undergoing a Mitral Valve Replacement (MVR) surgery. The claim was denied by LIC on the ground that he was suffering from a pre-existing illness. When challenged LIC’s decision before the District Consumer Disputes Redressal Forum, Ambala, which pass an order in his favour. The District Forum directed LIC to pay a sum of 2.21 lakh with interest. This order was concurred by the State Consumer Disputes Redressal Commission and later by the National Consumer Disputes Redressal Commission. LIC subsequently moved the apex court. Before the top court, LIC submitted that the Health-plus policy falls under the NMG category where the insured is not subjected to a medical examination before the issuance of the policy. It argued that the onus was on the insured to provide material particulars of his health since no medical examination was mandated. Mr. Gutpa argued that he was not suffering from any other ailment and that he cannot be faulted for any noting which has been made by the doctor in the course of treatment. But the Bench pointed out that the treatment record indicates that Mr. Gupta was operated for MVR, the nature of the diagnosis was rheumatic heart disease. Bench said they have made a fundamental error in allowing the claim for reimbursement of medical expenses in the face of the uncontroverted material on record.
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‘MY WIFE WILL LEAVE ME IF I JOIN POLITICS’: EX-RBI GOVERNOR RAGHURAM RAJAN

The former governor of the Reserve Bank of India (RBI) Raghuram Rajan doesn’t think about joining politics or floating a political party will do any good to his family life. The 56-year-old spoke about Congress’ minimum income guarantee scheme Nyunatam Aay Yojna or NYAY and the BJP-led government’s successes in the interview in Chennai recently, where he attended a board meeting of liberal arts university Krea as a member of its governing council. First, my wife has said she will not stay with me if I join politics. Politics everywhere is similar. It is not particularly noisy or whatever, I don’t have any taste for it. Somebody else can give the speeches and gain the votes, Rajan said when asked if he has something against joining politics. He said he will not be floating a party. My writings are all out there, you know my views. The point is I have no interest in politics. Absolutely none. And to speculations that he will be appointed as a minister if the Congress party is elected to power, Rajan said he is happy where he is. That’s too many steps, too far. Unfortunately, given the kind of work that I have done here, there is an expectation that my primary function is in the public arena. No, my primary job is academic. I like the job. I am a reasonably engaged academic. I have written a book recently (The Third Pillar) which is more intellectual than polemic. So given all that, I am very happy where I am, the Katherine Dusak Miller Distinguished Service Professor of Finance at the US’ University of Chicago’s Booth School of Business said. Rajan said he will also be happy to help in some useful way. I am happy to do it. Sometimes people want advice, and I’m happy to do it. He said, we have not moved the needle unlike what was anticipated. It may be good enough to keep going, 7% is nothing to be sneezed at. Then is it 7% with or without jobs? That is another issue. The underlying theme is that growth has some concerns. Have we changed the kind of economic framework for the world of tomorrow? I’d say no. I’d say this is pretty much the framework we had for a long time. He, however, said the parameters of the successes of the government needs to be looked at carefully. There is continuity in governance. NDA looks a lot like what UPA did— emphasised the same thing like GST, Direct Benefit Transfer, Aadhaar. If you tick off all the reforms that have been done, there is a continuity in that. The question again is, is that good news? It goes back to, can we afford the average? And the job situation would suggest that we really need to think about do we need a reboot, he pointed out. The next government whether it is the BJP coming back to power or a new one, he said, has to contemplate on the future of the reforms, think about the structures to tackle economic challenges and that jobs will be no 1 for any new government. It is not that there are no jobs, there are no good jobs. Do we have the economic apparatus to enable us for the next phase of growth? Do we have research forces in various universities that are gonna help industries become a force? I have not seen that, Rajan said. Are we investing in areas of those researches are also not clear. Electric batteries for example. Are we able to take up the jobs that are leaving China? I’d argue, anecdotally, that investors prefer coming to Vietnam, or even some times Bangladesh, than here. So, jobs will be no 1 for any new government, he added. When asked whether Congress’ NYAY is a better way to transfer cash than welfare schemes, he said the country needs structures around the market to help people live productive lives. The broader point about direct income transfers, which both NDA and UPA have agreed on, is that it can empower people. That doesn’t mean in every place the government will open a medical dispensary for the people to be able to buy. But once they have money power, people can go to private dispensary set up. And now that people have money to buy, the medicine is actually there. This is how they will evolve. It is not just about what it will do today, he said. He also talked about the similarities in the anger people have in India and the west and suggested that communities to be empowered to be able to bring in more place-based growth network. Let’s push more powers and funding down to the community so that they can actually respond. Some of these direct income transfer schemes are a way of pushing more power directly to the people. Of course, the devil lies in the details. You have done attempts of poverty alleviation for so many decades, with very limited results. So we should experiment, carefully, he said. This anger, he said, is affecting the society over the absence of good middle-class jobs which tends to have negative effects on the family, especially when you used to have those jobs and you don’t have now. They are getting very angry because they are slipping on social security.
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INDIA SETS A RECORD FOODGRAINS TARGET OF 291 MILLION TONNES

The government has set an ambitious foodgrains target of 291.1 million tonnes (mt) for 2019-20, nearly 2.6 per cent more than the previous year’s 283.7 mt, as a favourable monsoon is anticipated in the current season. While the target set for rice is 116 mt, 3 mt more than that in 2018-19, wheat production target is set at 100.5 mt, which is marginally higher than the previous year’s (July-June) 100 mt, said Agricultural Ministry sources at the National Kharif Campaign conference on Thursday. However, as per the second advance estimates for 2018-19, rice output is projected to be 115.6 mt, while that of wheat is 99.12 mt. The government, on the other hand, is hoping to have a substantial 10 per cent increase in pulses production at 26.3 mt, as against the target of 24 mt in the previous year. The target set for coarse cereals is 48.3 mt as against 46.7 mt last year. The output of oilseeds, however, is expected to be 36.1 mt (36 mt in 2018-19). So is cotton, whose tentative target for 2019-20 is 35.75 million bales of 170 kg each, marginally higher than 35.5 million bales in 2018-19. However, as per the second advance estimates, projected oilseeds production in 2018-19 was 31.5 mt, while that of cotton was a poor 30 million bales. Targeted sugarcane production, on the other hand, is 385.5 mt, nearly 30 mt more than that targeted in the previous year, but only 5 mt more than that was estimated in the 2018-19 second advance estimates. Maize target for the current year is 28.9 mt, while that for bajra and jowar are 9.5 mt and 4.9 mt respectively.
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INDIA-DOMICILED COS FILED OVER 4,600 PATENTS IN US BETWEEN 2015-2018: NASSCOM

India-domiciled companies filed over 4,600 patents in the US between 2015-2018, a majority of which were from the technology domain, a report by industry body Nasscom said Friday. Interestingly, Indian start-ups have filed nearly 200 patents in the US during 2015-18, and a majority of these focused on emerging technology areas including image processing, artificial intelligence, cyber security, vehicle technology and Internet of Things (IoT). Overall, the share of technology patents from India-domiciled companies has consistently increased to 64.8 per cent in 2017-18 from 51 per cent in 2015, the report said. Within technology patents, the share of emerging technologies has increased consistently to 56.3 per cent in 2017-18 from 38.3 per cent in 2015, while the share of computer and communication technology patents witnessed a decline. AI led the emerging technologies patent race both in terms of number of patents (330 patents) as well as growth over the period 2015-18. Apart from AI, there has been a consistent growth on building IP in other emerging tech domains with patents being filed in cyber security (193), IoT (107) and cloud computing (88) accounting for over 50 per cent of the tech patents filed in 2017-18, the report said. Innovation is the key to driving transformation and such patents and trademarks are a testimony to this transformational growth, Nasscom President Debjani Ghosh said. As a country, India can further strengthen its potential as an innovation hub through more investments in research and strategic collaborations. We are confident that we will usher in a new wave of innovation and intelligence in the country, she added. The study also highlighted the patent growth story in newer application areas including cyber security (96), digital payments (31), e-commerce (87) and navigation (58).
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JUSTICE INDU MALHOTRA APPOINTED TO IN-HOUSE INQUIRY PANEL TO PROBE ALLEGATIONS AGAINST CJI

Supreme Court judge Indu Malhotra was Thursday appointed as the third member of the in-house inquiry panel set up to examine allegations of sexual harassment against Chief Justice of India Ranjan Gogoi following recusal of Justice N V Ramana. Senior-most judge S A Bobde, who is heading the panel, has appointed Justice Malhotra to the committee. Justice Indira Banerjee is also part of the panel. The development assumes significance as the former woman employee of the apex court had written a letter on Wednesday to the panel expressing reservation over the inclusion of Justice Ramana on the ground that he is a close friend of the CJI and a regular visitor to his house. In her letter to Justice Bobde, she had also raised question over the presence of only one woman apex court judge — Banerjee — in the panel to examine her allegations against the CJI which according to her is not in accordance with the Vishaka Guidelines. The woman is supposed to appear before the panel on Friday. During the day, Justice Ramana recused himself from the panel by writing a letter to Justice Bobde. Sources said that Justice Ramana did not recuse owing to the objections raised by the former woman employee who has levelled allegations of sexual harassment against the CJI. Justice Ramana has recused and letter has been sent to Justice Bobde. It is a big three pages letter. The recusal is not based on the grounds raised by the former woman employee. But it is done so that the whole exercise does not get vitiated, a source said.
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GOVERNMENT SCHOOLS ENCOURAGE HEALTHIER LIFESTYLES: STUDY

The study was done in 19 co-educational schools located in Delhi that had primary and senior-secondary level classes to understand how many of them encouraged healthy habits in children. Researchers assessed school health policies, canteen and lunch box policies, infrastructure for sports and physical activity, measures for tobacco and alcohol control. It was found that almost all schools had some policies and practices in place to address a healthy lifestyle. Almost 80% private and 89% government schools said they were following the Comprehensive School Health Programme suggested by the Central Board of Secondary Education (CBSE). However, there was considerable variation in the type and number of policies amongst the schools. All government schools provided a free and balanced lunch to students of primary and upper primary classes under the mid-day meal scheme, thus discouraging consumption of junk food. None of the government schools had a canteen, while 60% of private schools had one. Advertisements of food and beverage companies (in and outside school campus) were observed in private schools, but not in any of the government schools. The visual impact of advertisements tempts children to purchase unhealthy foods. When it came to displaying signs related to nutrition policy, only 10% private and about 55% government schools did so. While all schools had a playground, they were suitable for sports in 60% of the private schools as against only 33% in government schools. Adequate or good sports equipment was available in all private and 71% government schools. All the schools had physical education periods for each class. There were however, only two physical education periods per week of 40–50 minutes, which is less than the minimum duration in the CBSE guidelines. Most government schools provided information about harmful effects of tobacco and alcohol in the school curriculum. But only 40% (at primary school level) and 60% (at secondary school level) private schools had similar information in their curriculum. Tobacco vendors within a 100-yards radius of the school were observed in 40% of private and 11% of government schools. Most government schools had anti-smoking signs on display, while only one private school had such displays. One private school had an alcohol outlet in its immediate vicinity. Schools are important setting for delivering health interventions. Despite this, little is known about existing school-based health initiatives in the Indian context. We have comprehensively assessed existing school policies, built environment and practices in relation to prevention and control of non-communicable diseases, beyond what is officially documented, explained Shalini Bassi, a member of the study team from the Public Health Foundation of India (PHFI). The onset of many lifestyle or non-communicable diseases like diabetes, obesity and cardiovascular diseases can be prevented or delayed by addressing these risk factors earlier in life. By increasing awareness about risk factors like unhealthy diet, physical inactivity and tobacco use, children can be encouraged to develop healthy practices.
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GOAIR TO EXPAND NETWORK WITH 28 NEW FLIGHTS FROM APRIL 26

Budget carrier GoAir on Wednesday said it will launch 28 additional flights in its network, including eight services from its hub in Mumbai and another seven from New Delhi, starting April 26. Its bigger rivals, IndiGo and SpiceJet, have already announced the roll out of additional flights from the city following the temporary grounding of Jet Airways and subsequently steep reduction in capacity, mainly in the domestic market amid peak demand season. GoAir announced 28 flight options this summer in addition to our existing flights. There are two sectors that GoAir is launching for the first time, namely, Delhi-Nagpur-Delhi and Delhi-Kochi-Delhi, GoAir managing director Jeh Wadia said in a release. The airline also announced fare as low as 1,368 on select routes, he added. As per the company, the roll out of 28 additional flights covering across airports will alleviate the shortage of flights and inconvenience caused to passengers due to the Jet Airways flight cancellations, the release said.
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INDIGO'S APRIL 2 PUNE INCIDENT DUE TO ENGINE STALLING: AAIB PROBE

An initial probe by the apex aircraft investigation body AAIB has found that one of the Pratt & Whitney-powered engines of the A320 Neo flight of IndiGo, which had made a turn back to Pune early this month, stalled mid-air with a loud bang, according to sources. The investigation into the incident that took place on April 2 were handed over to the Aircraft Accident Investigation Bureau (AAIB), after a preliminary probe by the aviation regulator Directorate General of Civil Aviation (DGCA). The bureau has the mandate to investigate all serious incidents/accidents involving aircraft. The Pune-Nagpur flight being operated by an A320 Neo plane (VT-ITG) was later grounded at the Pune airport as it required a major engine overhaul. While climbing out of FL150 (15,000 ft), a loud bang was heard by the crew which was followed by one engine stalling and high EGT (exhaust gas temperature) going over the limit, the AAIB said in its initial probe. The report has been shared with the French aviation authorities. The preliminary report also found damages to the engine's low pressure turbine (LPT), which forced the pilot to return to Pune. Significantly, IndiGo spokesperson on April 2 had termed the incident only as an 'engine caution message, while the incident was a grave safety risk as per the bureau report. After take-off from Pune for Nagpur, the pilot observed engine caution message in the flight (6E-134) operated by an A320 Neo plane. Following this the aircraft returned to Pune, the spokesperson said even without admitting that the plane was a P&W-powered A320 Neo. When reached for comments on the AAIB probe, the airline Friday said as a matter of policy it does not comment on an on-going investigation and parried a query on why such a serious incident was dubbed as simply engine 'caution message. We immediately reported the occurrence as per the laid down SOP to the DGCA. Subsequently, the matter was also referred to the AAIB, whose investigation is still on, Indigo said in the statement.
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CONSUMERS TO FACE POST-ELECTION FUEL PRICE SHOCK, ECONOMISTS WARN HIGHER OIL PRICES MAY HIT GDP, BUDGET

Surging global oil prices will pose a first big challenge to India’s new government whoever wins an election now under way, especially as domestic prices have been allowed to lag, meaning consumers are in for a painful surge as they catch up. For oil-import dependent India, higher global prices could lead to a weaker rupee, higher inflation, the ruling out of interest rate cuts and could further weigh on twin current account and budget deficits, economists warned. But compounding the future pain, state-run fuel suppliers and retailers have held off passing on to consumers the higher prices during a staggered general election, which began on April 11 and ends on May 23, according to sources familiar with the situation. That delay is expected to be unwound once the election is over. And there could be additional price increases to make up for losses or profits missed during the period of delayed increases, the sources said. In some major Asian countries, such as Japan and South Korea, pump prices are adjusted periodically so they move largely in tandem with international crude prices. That was what was supposed to happen in India but the election means there have been many days when pump prices have been unchanged. In New Delhi, for example, while crude oil prices have gone up by nearly $9 a barrel, or about 12 percent, in the past six weeks, gasoline prices have only risen by 0.47 rupees a litre, or 0.6 percent. State-controlled fuel suppliers and retailers declined to say why they had delayed price increases, or discuss whether there has been any pressure from the government of Prime Minister Narendra Modi. The opposition Congress party said Modi’s government was violating its own policy of daily price revision by advising the state oil companies to hold prices steady. The government should cut fuel taxes otherwise consumers will have to pay much higher oil prices once the elections are over, said Akhilesh Pratap Singh. Nitin Goyal, said prices were similarly held down for 19 days in the southern state of Karnataka last year, when it held state assembly elections. Only for them to surge after the vote. Consumers should be ready for a rude shock of a massive jump in retail prices, similar to the level we have seen in the Karnataka state election, Goyal said.bSri Paravaikkarasu, said retail prices of gasoline and gasoil prices would have been up to 6 percent, or about 4 rupee, higher if they had been allowed to rise in line with global prices. Indian pump prices have failed to keep up with the recent uptrend in crude prices, Paravaikkarasu said. With the country’s general elections underway, the incumbent government has been keeping pump prices relatively unchanged. India had switched to a daily price revision in June 2017 from a revision every two weeks, as the government allowed retailers to set prices. But the government faced protests last October when retailers raised prices by up to 10 rupees a litre after the crude oil price went above $80 a barrel, forcing it to cut fuel taxes. Global prices rose to their highest level in 2019 on Thursday, days after the United States announced all Iran sanction waivers would end by May, pressuring importers including India to stop buying Tehran’s oil. Higher oil prices will mean Asia’s third largest economy is likely to see growth of less than 7 percent rate this fiscal year, economists said. Growth slowed to 6.6 percent in the October-December quarter, the slowest in five quarters. Rating agency CARE has warned that a 10 percent rise in global oil prices could increase demand for dollars, putting pressure on the rupee and widening the current account deficit. India’s oil import bill rose by nearly one-third in the fiscal year ending March 31 to $140.5 billion, against $108 billion the previous year. Policymakers are worried that a sustained increase in the oil price in the range of $70-75/barrel or higher can move the rupee down by 3-4 percent on an annual basis. The rupee has depreciated by 1.24 percent against the dollar since a year high in mid-March. ($1 = 70.1800 Indian rupees)
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INDIA'S SMARTPHONE SHIPMENT GROWS 4% TO 31 MILLION IN MARCH QUARTER: COUNTERPOINT

Smartphone shipment in the country grew four per cent year-on-year to 31 million units in the January-March 2019 quarter, according to a report by Counterpoint Research. Anshika Jain, said the overall growth was slower than expected as some of the major brands were sitting on inventory after a stock build-up during the festive period last quarter. This quarter, we have seen all major brands expanding their footprint in offline channels to gain market share, Jain added. While the report did not disclose the shipment numbers for feature phones, it said Jio had a 30 per cent share, followed by Samsung (15 per cent), Lava (13 per cent), Nokia (8 per cent) and Itel (7 per cent). While the smartphone market offers a big opportunity, one can't ignore 400 million feature phone users in the market which is also likely to stay for the next five years in India, the report added. Xiaomi continued to lead the smartphone tally with 29 per cent share, followed by Samsung (23 per cent), Vivo (12 per cent), Realme and Oppo (7 per cent each). Volume of the Chinese brands is estimated to have grown 20 per cent year-on-year driven by growth of brands like Vivo, Realme, and OPPO. The market share of Chinese brands in the Indian smartphone market reached a record 66 per cent during the first quarter of 2019. India's smartphone market continues to attract a lot of attention from global and Chinese players. Data consumption is on the rise and users are upgrading their phones faster as compared to other regions, Counterpoint Research associate director Tarun Pathak said. This has led to users spending more on their purchase which is driving up the overall average selling price in the market, he added. As a result of this, the premium specifications are now diffusing faster into the mid-tier price brands. We estimate this trend to continue leading to a competitive mid-tier segment in coming quarters, Pathak said. Samsung surpassed OnePlus to become the number one player in the premium smartphone segment, driven by the good response for its Galaxy S10 series.
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ISRO POSTPONES CHANDRAYAAN-2 AFTER ISRAEL'S UNSUCCESSFUL ATTEMPT TO LAND ON MOON

Wary of failure after Israel's unsuccessful attempt to land on Moon, Chandrayaan-2 has been further postponed to July, an ISRO official said. We saw Israel's example and we don't want to take any risk. Despite Israel being such a technologically advanced country, the mission failed. We want the mission to be a success, he said. The launch of India's Moon mission was scheduled in April but it was postponed after Israel's Beresheet spacecraft crashed during moon landing early this month. The ambitious mission was a first for a private effort. Landing on the Moon is a very complex mission and all the exigencies have to be factored in, the official added. The next launch window is available in mid-July for 10 days, he said. Chandrayaan-2 was scheduled to be launched in April last year, but it was postponed to October after ISRO lost contact with GSAT-6A in March 2018. Following the setback, the ISRO grew cautious about its missions to ensure there was no failure. The postponement of the ambitious mission was due to two setbacks it faced in two years.
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J&J FACES MORE PAIN AS MUMBAI COPS REOPEN IMPLANTS CASE

The Mumbai Police has opened investigation into an eight-year-old case against DePuy Medical Pvt. Ltd, a subsidiary of Johnson and Johnson Pvt. Ltd (J&J), for its faulty hip replacement implants, a top police official said on Thursday. The city police is in the process of recording statements of patients and doctors to collect evidence. The investigation concerns a complaint filed against DePuy at the Mahim police station in 2011 by an inspector in Food and Drug Administration (FDA), Maharashtra. The police, having ignored the matter, has now sprung into action after a spate of recent media reports on the subject and the findings of an expert committee. The central government too became serious about the issue after a Mint investigation brought to light the plight of Indian patients, who had suffered because of faulty implants. A high-level panel set up by the government to look into the matter recommended that every affected patient be compensated. The suggested amounts range from 33 lakh to 1.25 crore. We have been contacting patients and the doctors to record their statements. We are also looking into the medical records of the patients and their present status with regard to presence of chromium and cobalt levels in their body for the purpose of evidence, Ajinath Satpute, said on the phone. Around 4,700 patients have undergone acetabular surface replacement (ASR) surgeries in India between 2004 and 2010. However, only 1,080 patients have been traced so far through the company’s ASR helpline. The Mahim police station has written to the patients asking for their medical records. During the course of investigation, it has come to our knowledge that a medical procedure was conducted and an allegedly faulty ASR hip implant marketed by the accused company was implanted in your body. As such, your assistance in this regard is necessary for further investigation. You are therefore requested to attend this office with all medical papers in respect of pre and post above said medical procedure, reads the letter. The case has been pending for long. However, it has now gathered speed due to the recent expert committee report. We will do a thorough investigation to take the case to its logical conclusion, said Satpute.
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MOTHER-OF-PEARL! SCIENTISTS CREATE SYNTHETIC PEARL USING BACTERIA

Scientists have used bacteria to create synthetic mother-of-pearl that is tough but bendable, and could be used as medical implants or for constructing buildings on the Moon in future. Nacre, also known as mother-of-pearl is an exceptionally tough, stiff material produced by some mollusks and serving as their inner shell layer. It also comprises the outer layer of pearls, giving them their lustrous shine. However, while nacre’s unique properties make it an ideal inspiration in the creation of synthetic materials, most methods used to produce artificial nacre are complex and energy intensive. Scientists at the University of Rochester in the US invented an inexpensive and environmentally friendly method for making artificial nacre using an innovative component: bacteria. The artificial nacre is made of biologically produced materials and has the toughness of natural nacre, while also being stiff and bendable. In a research published in the journal Small, the team outlined their method of using two strains of bacteria to replicate these layers. When they examined the samples under an electron microscope, the structure created by the bacteria was layered similarly to nacre produced naturally by mollusks. One of the most beneficial characteristics of the nacre produced at the University of Rochester is that it is biocompatible — made of materials the human body produces or that humans can eat naturally anyway. This makes the nacre ideal for medical applications like artificial bones and implants, Anne S Meyer, an associate professor at University of Rochester. If you break your arm, for example, you might put in a metal pin that has to be removed with a second surgery after your bone heals. A pin made out of our material would be stiff and tough, but you wouldn’t have to remove it, she said. The nacre might also be an ideal material to build houses on the moon and other planets: the only necessary ingredients would be an astronaut and a small tube of bacteria, Meyer said. The moon has a large amount of calcium in the moon dust, so the calcium’s already there. The astronaut brings the bacteria, and the astronaut makes the urea, which is the only other thing you need to start making calcium carbonate layers, she said. Although nacre-inspired materials have been created synthetically before, the methods used to make them typically involve expensive equipment, extreme temperatures, high-pressure conditions, and toxic chemicals, said Meyer. Many people creating artificial nacre use polymer layers that are only soluble in nonaqueous solutions, an organic solvent, and then they have this giant bucket of waste at the end of the procedure that has to be disposed of, she said. To produce nacre in Meyer’s lab, however, all researchers have to do is grow bacteria and let it sit in a warm place. In order to make the artificial nacre, researchers create alternating thin layers of crystalised calcium carbonate — like cement — and sticky polymer. They first take a glass or plastic slide and place it in a beaker containing the bacteria Sporosarcina pasteurii, a calcium source, and urea (in the human body, urea is the waste product excreted by the kidneys during urination). This combination triggers the crystallization of calcium carbonate. To make the polymer layer, they place the slide into a solution of the bacteria Bacillus licheniformis, then let the beaker sit in an incubator. Right now it takes about a day to build up a layer, approximately five micrometers thick, of calcium carbonate and polymer. Researchers are currently looking at coating other materials like metal with the nacre, and we’re trying new techniques to make thicker, nacre-like materials faster and that could be the entire material itself, Meyer said.




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