National Current Affairs February 2012
France's Rafale Clinches $ 10.2-Billion Indian MMRCA Deal
India chose on January 31, 2012 the French fighter aircraft Rafale over the Eurofighter Typhoon in the high-profile deal for the supply of 126 Medium Multi-Role Combat Aircraft (MMRCA). It is the country's largest defence deal to date. Rafale fighters are manufactured by the French giant Dassault. It may be mentioned here that Dassault had faltered at the beginning of the bidding process, with the Indian Defence Ministry suggesting that Rafale was out of the race. However, the French aviation giant made a comeback and went on to win the bid.
The length of the Rafale fighter is 15.27 metres and it has a wingspan of 10.80 metres. Its empty weight is 9,500 kg, while the loaded weight is 14,016 kg. The aircraft with a 2xSnecma M88-2 powerplant and 4,700-kg fuel capacity can accommodate a crew of 1-2. It has a range of 3,700 km and can reach a top speed of 2,130 km/h. In comparison, the Eurofighter Typhoon, manufactured by Cassidian, features the following specifications : length 15.96m wingspan 10.95m; empty weighi 11,150 kg; loaded weight 16,000 kg powerplant 2xEurojet EJ200; fuel capacity 4,500 kg; top speed 2,495 km/h range 2,900 km, and a crew of 1-2.
The Defence Ministry said in a statement that Rafale was selected on the basis of it being the Lowest Bidder (LI). The decision was arrived at after complex calculations, including the life-cycle costs. The final shortlist of the two aircraft—Rafale and Eurofighter—was put together from a list of six, which also included US Boeing (F/A18) and Lockheed Martin (F-16), Russian MiG-35 and Swedish Saab (Gripen). The shortlist was made in April 2011.
The landmark deal is estimated,to be worth $10.2 billion or Rs. 54,000 crore. According to the clauses of the deal, India would acquire from France the first consignment comprising 18 Rafale fighters that are in fly-away condition. The rest of the 126 fighters are to be made in India at the Hindustan Aeronautics Limited (HAL) facility in Bengaluru under transfer of technology. It is worth noting here that this is the third big defence contract for France from India in recent times. In the 2011-12 financial year itself, the Government of India cleared the S2.4-billion upgrade of 51 Mirage-2000 aircraft and the $970-million supply of MICA fire-and-forget missile for the same aircraft
India Unveils New Rating Index
According to a report released on January 31, 2012, a new rating index has been developed by the Finance Ministry. The index has been christened Comparative Rating Index of Sovereigns (CRIS). It is compiled on the basis of sovereign ratings of various countries put together through rating data of Moody's and GDP data of the International Monetary Fund (IMF). By this new yardstick, the prospects of investment in India have markedly improved over the last five years. As per CRIS, Paraguay, Indonesia and Peru were the countries that posted the maximum increase in their ratings between 2007 and 2011. On the other end of the spectrum were Portugal, Ireland and Pakistan, which were the three countries that witnessed the biggest fall in the index.
Going by CRIS, India's score has risen from 66.47 in 2007 to 69.83 in 2011. In other words, in relative terms, India has become a better investment destination by 5.06 percent. As per this yardstick, India's rank moved up from 61 st position in 2007 to 55th in 2011. India's Chief Economic Adviser Dr. Kaushik Basu said that the improved score was partly due to the decline in scores of some European nations, which led to the deterioration of the world average by over 4.8 percent.
It was announced that the release of CRIS data would henceforth be a periodic feature and details of this index would be contained in the Economic Survey of India, a publication which the Government of India brings out every year.
Highlights
• The new index has been christened Comparative Rating Index of Sovereigns (CRIS).
• It is compiled on the basis of sovereign ratings of various countries put together through rating data of Moody's and GDP data of the IMF.
• Going by CRIS, India's score has risen from 66.47 in 2007 to 69.83 in 2011.
• In other words, in relative terms, India has become a better investment destination by 5.06 percent.
India Inks Global Tax Treaty
According to reports released on January 29, 2012, in a move to get information on black money stashed abroad, India has signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. It is a multilateral agreement that promotes international cooperation while respecting the rights of taxpayers.
The Convention provides for administrative cooperation among the parties in the assessment and collection of taxes, with a view to combating tax avoidance and evasion. It is based on international standards of transparency and exchange of information. This instrument is multilateral and is a single legal basis for multi-country cooperation as against the DTAAs/TIEAs which are bilateral. It not only facilitates the exchange of information, but also provides for assistance in the recovery of taxes.
As of now, the signatories to the Convention are : Argentina, Australia, Belgium, Brazil, Canada, Denmark, Finland, France, Georgia, Germany, Iceland, India, Indonesia, Ireland, Italy, Japan, South Korea, Mexico, Moldova, the Netherlands, Norway, Poland, Portugal Russia, Slovenia, South Africa, Spain, Sweden, Turkey, Ukraine, the UK and the US.
Highlights
• It is a multilateral agreement that promotes international cooperation while respecting the rights of taxpayers.
• The Convention provides for ao'ministrative cooperation among the parties in the assessment and collection of taxes.
• It is based on international standards of transparency and exchange of information.
• This instrument is multilateral and is a single legal basis for multi-country cooperation as against the DTAAs/TIEAs which are bilateral.
Krishna Makes Sri Lanka Visit
External Affairs Minister Mr. S.M. Krishna concluded his four-day official tour of Sri Lanka on January 19, 2012. His main achievement during the visit was getting Sri Lankan President Mr. Mahinda Rajapaksa to reiterate that Sri Lanka would take the "13th Amendment plus approach" to solving the ethnic problem in the country. It set the stage for a fresh approach to the Sri Lankan Tamils' quest for a political say in the nation.
On the concluding day of his visit, Mr. Krishna formally handed over to the Sri Lankan authorities the completed section of the Galle-Hikkaduwa railway link, constructed by the Indian public sector company IRCON International Ltd. Apart from this completed 19-km stretch, IRCON is also currently constructing the Phase-II of the 45-km Galle-Matara section. The total cost of revamping Sri Lanka's Southern Railway is $167.4 million, for which India has extended a line of credit.
Mr. Krishna also announced a substantial increase in India's assistance to Sri Lanka's education sector, amounting to a grant of Sri Lankan Rs. 2.5 billion. Under this programme, scholarships and self-financing slots for undergraduate, masters and doctorate-level courses will be increased to nearly 270 per year. This marks a three-fold increase.
Highlights
• Mr. Krishna reached points of convergence with Sri Lankan President Mr. Mahinda Rajapaksa on the Tamil question.
• He formally ended the completed Galle-Hikkaduwa railway, built by IRCON, to Sri Lanka.
• Mr. Krishna also announced a substantial increase in India's assistance in the education sector, amounting to a grant of Sri Lankan Rs. 2.5 billion.
Air In India World's Most Toxic: Study
As per a new study released by the American universities of Yale and Columbia on January 27, 2012, India has the world's most toxic air. In the study, India is ranked at the very last position among 132 nations in terms of air quality with regard to its effects on human health. The rankings are part of a wider study to create an index of the world's nations in terms of their overall environmental performance. The Yale University and the Columbia University have been bringing out the Environment Performance Index rankings every two years since 2006.
India scored a laughable 3.73 out of a maximum of 100 points in the latest survey. It lagged far behind next worst performer Bangladesh, which scored 13.66. The enrire South Asian region fared poorly, as Nepal, Pakistan and China took up the remaining three places in the bottom five. In the overall rankings—which take 22 policy indicators into account—India fared minimally better, but was still stuck in the bottom ten along with traditional poor performers such as Iraq, Turkmenistan and Uzbekistan. At the other end of the scale, the European nations of Switzerland, Latvia and Norway took the top three ranks.
According to the survey, India's performance over the last two years was relatively satisfactory in such sectors as forests, fisheries, biodiversity and climate change. However, in the case of water— both in terms of ecosvstem effects to water resources and the human health effects of water quality—the country's performance was poor.
Highlights
• According to the report, India has the world's most toxic air.
• India is ranked at the very last position among 132 nations in terms of air quality with regard to its effects on human health.
• India scored a mere 3.73 out of a maximum of 100 points in the survey.
India's School Dropout Rate Still High
As per data released by the National University of Education Planning and Administration (NUEPA) on January 18, 2012, the school drop-out rate in India is still quite high. It is common knowledge that the country's primary school enrolment is regarded as one of its great achievements. Near 100 percent enrolment is one of the Millennium Development Goals the nation has reached ahead of time. However, this seemingly laudable feat hides a real bad news, which is that only half the kids who enrol in Class I make it to Class VIII.
In 2009-10 (the latest year for which official data is available), 133.4 million children enrolled in Classes I-V, but only 54.5 million made it to Classes VI-VIII. Most of these children dropping out of school end up with practically no education at all, as over 50 percent of all drop-outs quit school before Class III. In rural areas, most drop-outs leave school in Class V, while in urban areas a third of all drop-outs leave in Class II.
Another matter that has compounded the problem is the fact that even theschool-going children are not learning enough. A recent report on the level of learning in rural schools shows that half of all children in Class V cannot read texts meant for Class II students; two-thirds cannot solve a division sum.
In 2009, the Centre had set up the Rashtriya Madhymik Shiksha Abhiyan to achieve a General Enrolment Ratio (GER) of 75 percent in secondary education (Class XI to XII) by 2020. Then in 2010, the government brought into force the landmark Right to Education (RTE) Act, enshrining Indian children's right to free and compulsory education in the Constitution. However, all this seems to have borne little fruit due to the persisting high drop-out rate.
Highlights
• The school drop-out rate in India is still quite high.
• Only half the kids who enrol in Class I make it to Class VIII.
• Most of these drop-outs end up with practically no education at all, as over 50 percent of all drop-outs quit school before Class III.
• Another report shows that the level of learning in rural schools is very low, with Class V students unable to read texts meant for Class II.
India Scores Low On Nuclear Security
The first-ever index of security of nuclear materials, compiled by the US nuclear think-tank Nuclear Threat Initiative (NTI) and Economist Intelligence Unit (EIU), was released on January 14, 2012. The Nuclear Materials Security Index dealt a blow to India, ranking the country at a lowly 28th position among 32 countries. In the index, India is just above Iran, Pakistan and North Korea.
In the index, countries were scored on the following indicators : quantities and sites, which included material production and transportation; securitymeasures, particularly on-site protection; accession to global norms, including taking on voluntary commitments; domestic commitments and capacity, including political stability and corruption. India scored well on on-site physical protection, response capabilities and accounting procedures. It scored poorly in political stability and because of the lack of domestic legislation. India also scored nil on "security of materials during transportation".
Nations like Australia (94 points out of 100), the Netherlands (84), the UK (79), the US (78), etc., are at top of the heap. China (52), India (49), Vietnam (48), Iran (46), Pakistan (41) and North Korea (37) bring up the rear.
Highlights
• The Nuclear Materials Security Index ranked India at a lowly 28th slot among 32 countries.
• In the index, India is just above Iran, Pakistan and North Korea.
• India scored well on on-site physical protection, response capabilities and accounting procedures.
• It scored poorly in political stability and because of the lack of domestic legislation.
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