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Volume 7 Issue 09

YSR Reddy dead • 55th National Awards • Cloud Computing • Profiles : Sunil Mittal •Brand icon: Reebok • Book review – A Suitable Boy

Volume 8 Issue 03

16 Sep –15 Oct 2009 www.PTeducation.com Rs. 40 The monthly news magazine of the PT education family

the life
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China, also called 'The Dragon',
has exhibited exemplary growth, material progress and
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Know how an ancient civilization transformed
into a mighty nation capable of taking on the world.
Contents
Major news stories
Simplifying knowledge dissemination
q YSR Reddy dies in chopper crash ....................................... 05
Editor-in-Chief : Sandeep Manudhane q 55th National Awards ........................................................... 09

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Manish Saraf - 97555-99509 Cover Story
Volume 8. Edition 03. September2009 q Flight of the dragon out of the great wall ............................ 10
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Opp. Railway Station Indore - 452001 Current events
Ph : 0731-307 00 00
Fax : 0731-3070099 q India ........................................................................................ 16
E-mail : preptalk@PTeducation.com q World ...................................................................................... 24

© 2008 All rights reserved.


q Business and Economy.......................................................... 28
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Articles and contributions – courier or emails – should Profiles


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Unaccepted articles may not be returned.
q Sunil Mittal ............................................................................ 40
q M .S. Oberoi .......................................................................... 41
Published by Manish Saraf on behalf of
PTETSL, 4th Floor, Yeshwant Plaza,
Opp. Railway Station, Indore 452001. PT Panorama
q Cloud Computing .................................................................. 39
Disclaimer :
The information given in this magazine is true to the best
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will not be responsible in any manner for inadvertent
News in brief
errors that may have crept into this publication. PT does
not take responsibility for returning unsolicited q India ........................................................................................ 58
publication material.
q World ....................................................................................... 61
q Business and Economy ......................................................... 65
q Sports ..................................................................................... 69

Regulars
q Opinion .................................................................................. 42
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“To be a world class training and education q Logo Quiz .............................................................................. 45
organisation shaping careers through innovative
products and services & the use of human q Business Trivia ...................................................................... 46
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q General knowledge ............................................................... 48
q Brand icon: Reebok .............................................................. 71
q Book review: A Suitable Boy.................................................. 72
Dear friends / PTzens,
Take Quote
In a pond no dragon is meant to lie; “The secret of success is to know
He will ride the thunder to the sky! something nobody else knows.”
– Luo Guanzhong, Three kingdoms – Aristotle Onassis

Asia is on the rise and the world seems to be in awe of the emerging prowess of “The optimist proclaims that we
China- the rising dragon and India on the move. The whole world is talking about live in the best of all possible
the success of the two nations. These two are being hailed as the next power worlds, and the pessimist fears this
centres of the globe. is true.”
– James Branch Cabell
Our cover story provides snippets of China. China has been consistently
growing since late 1970s and its all round development has started challenging the “If everything seems under control,
position of the only superpower on the globe. The spectacular show by China at
you're just not going fast enough.”
the Beijing Olympics, both in organizing the event and in performance, has
– Mario Andretti
emboldened its image of being the next superpower. It has given clear indications
that it is moving steadily on the path of success on all the economic parameters
“Discontent is the first necessity of
with strong growth fundamentals. It now seems to be a developed country with a
progress.”
tag of a developing nation.
– Thomas Alva Edison
China is reckoned as economically, militarily and culturally robust and has
tried to become the cultural fulcrum of Asia. “When you blame others, you give
up your power to change.”
China's military muscle is now at par with the developed world nations like – Robert Anthony
USA and India lacks on many fronts to match it. It is imperative to study its
hegemonic intentions through its territorial claims in Arunachal Pradesh, Sikkim “The problems facing the world
and Aksai Chin, a part of western Jammu and Kashmir. today are not susceptible to military
solution.”
China plays a leading role in the outsourcing of manufacturing and is making – J F Kennedy
strong headway in IT industry and may soon pose a threat to India's supremacy.
China's domestic market is estimated to be four times the size of India's. Looking “You must do the things you think
at the export and import sector sans IT service, it has overtaken the US also. you cannot do.”
– Eleanor Roosevelt
There also has been a paradigm shift in the priorities of its foreign policy and it
has focused on forging working relationships with as many states as possible “An expert is someone who knows
especially in its neighbourhood.
some of the worst mistakes that can
be made in his subject and how to
While China remains a formidable competitor, the opportunities of a peace
process far outnumber the threats. India needs to adopt a policy of engagement avoid them”
rather than a policy of isolated approach. At the same time we need to remember – Karl Heisenberg
what Napoleon said “When China awakes it will shake the world”.
“Retirement kills more people than
Manish Saraf hard work ever did.”
COO, PT education – Malcolm s. Forbes

“Success usually comes to those


who are too busy to be looking for
it.”
– Henry David Thoreau

02 PT’s PrepTalk – September 2009


Letters to the editor
Though Mr. Nilekani faces
Swine Flu daunting challenges in implementing
the system as it is a colossal exercise
The article Swine Flu rightly gave yet given his past track record he is
an insight into the pandemic that has sure to be a resounding success.
rocked our nation. Kudos to our Prime Minister for
appointing a man of mettle who could
The deadly disease swine flu is, give a facelift to the identity card
without a speck of doubt, causing a system.
massive havoc among the common
people of India and has created panic The appointment of Infy's
across the various strata of the society. Nandan Nilekani as the head of
Whether a three year old kid or a India's UID project did not come out
septuagenarian, whether a of the blue. It seems PM got the wind
businessman or a construction of NN's own writings that talked about
worker, people from all walks of life providing Unique ID to all Indian
are getting affected by the swine flu citizens. It is not surprising that UPA
virus, directly or indirectly. government is linking the UID to the
better delivery of social programs.
The Government has strived to
mobilize resources and treat the – Abhijit Dube, Nasik
affected but there have been certain Profile: Nandan Nilekani
loose ends. Firstly, the inadequate
stock of Tamiful, the drug used in the The profile of Nandan Nilekani was
treatment compounded the problem very informative. As the Chairman of
and then the government had to 'Unique Identification Authority of
grapple with the problem of scarcity of India, he has an onerous responsibility FEEDBACK !
masks and the inadequacy of testing to shoulder. This project is indeed Your comments and
laboratories. The Government at this touted as a revolutionary change for our views on PrepTalk
juncture needs to think of an nation and this project will assume
are needed to help
alternative medical system. There is global importance when stalwarts like
Us make it better.
a need to pay greater attention to Bill Gates too would join hands with him
issues relating to basic hygiene that in the scheme. Which articles did you like?
would ensure a disease – free life for Which columns do you
all. Government has to exercise It is really good to know that a person like to read regularly?
caution in preventing the disease with a vision is overseeing this project. Which are the best parts of
from spreading to villages as it would This project will not only help channel the magazine?
be more difficult to control then. the resources to the targeted people but Which are not?
will also be a tool to detect the large How to improve?
If the Government follows the illegal immigrants who cause numerous
above measures diligently, then swine problems in India. Moreover, it makes a Send feedback to:
flu can be kept at bay in India. giant step towards meaningful e- preptalk@PTeducation.com
governance in the largest democracy in
– Rajesh Chouhan, Ajmer the world.

PT’s PrepTalk – September 2009 03


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E s t a b l i s h e d 1 0 th J u l y 1 9 9 3
Major news stories

YSR Reddy dies in chopper crash


hief Minister of Andhra Pradesh, Y. S.

C RajasekharaReddy, known better as YSR, died


in a helicopter crash, on September 3, 2009.
Four others were also killed in the helicoptercrash.

His helicopter was traced in mangled state on


Rudrakonda hill, 40 nautical miles east of Kurnool, 24
hours after it went missing over a dense forest area
dominatedby Maoist rebels.

The state-owned twin engine, seven-seater


helicopter, Bell-430, he was flying in disappeared over
the Nallamalla forest area in heavy rains at 9.35am on
September 2, about an hour after it started, state Between 1999 and 2004, he was the leader of the Opposition
officials said. in the eleventh State Assembly. And earlier, from 1980 to 1983,
YSR had also served as a minister in the state government,
The chief minister was on his way from Hyderabad to holding portfolios of rural development, medical and health and
Chittoor in Rayalaseema region in southern Andhra Pradesh on education.
an official programme.
Becoming chief minister was a long cherished dream for
Reddy, 60, a powerful politician who had never lost an YSR. Prior to the 2004 state elections, he led an unprecedented
election during his 30-year political career, led the Congress 1,400km-long paadayatra covering all the backward areas in the
party to victories in both state and Parliament elections in May, state. He said he was on a mission to understand the ground
and was just months into his second term as chief minister. realities of the people.
He had won his first term as chief
minister in 2004, defeating N. YSR DREAM PROJECT LIKELY TO COME UP BEFORE
Chandrababu Naidu of the Telugu CABINET
Desam Party, or TDP, son-in-law of the
popular actor-politician and former The national project status for the Polavaram multipurpose
chief minister, N. T. Rama Rao. irrigationproject on the Godavari,the most importantpart of Y S
Rajasekhara Reddy's ambitious Jalayagnam irrigational
Reddy, a second generation Roman Catholic Christian, was programme, is likely to come up before the Cabinet for
born on 8 July 1949 in Pulivendula, a small town in the Kadapa clearance.
district. Before taking a plunge into politics in 1978, Reddy
served as medical officer at CSI Campbell Hospital in With the project caught up in inter-state tussle after its
Jammalamadugu in Kadapa district after graduating in medical launch in 2004, YSR had been trying to revive it by securing
science from the MR College of Gulbarga. national project status which would have enabled the Centre to
fund up to 90 per cent of the project. While the Centre was till
The four-time Lok Sabha member had served in various now undecided on according it national project status due to
capacities both in the state government and in the Congress objections raised by neighbouring Orissa, sources in the Union
party. He served the Andhra Pradesh Congress Committee as its Water Resources Ministry said they were thinking of placing it
president twice, once in 1983-85 and then in 1998-2000. before the Cabinet soon.

PT’s PrepTalk – September 2009 05


YSR had performed bhoomi pooja of the Polavaram project,
estimated to irrigate 7.21 lakh acres in the upward areas of West
Godavari, Krishna, East Godavari and Vishakhampatnam
districts, generate 960 MW of power and also provide industrial
and drinking water to these districts, in November 2004, soon
after he came to power dislodgingthe TDP.

But YSR wanted the project to be accorded national project


status, so that the Centre could provide funding of up to Rs 6,000
crore. Orissa, however, has been protesting against any such
move by the Central government, with Chief Minister Naveen
Patnaik writing to Prime Minister ManmohanSingh objectingto
the national project status. Patnaik said the project would
inundatemany of its villages without any benefit to Orissa.
However, there was no independent confirmation of this.
However, sources in the Water Resources Ministry said that The police said they did not have any figures to confirm this
while pushing for national project status YSR had offered to report.
construct embankments on either side of the reservoirs in
Orissa side from Andhra Pradesh's funds to prevent villages in This is the first time in the state's history that such a large
the neighbouringstate from being submerged. number of people have died over the death of any political leader.

OVER 100 DIE AFTER YSR'S DEATH A large number of those who died of shock included young
supporters of YSR and the beneficiaries of the various welfare
As many as 122 people across Andhra Pradesh reportedly schemeslaunchedby him in the last five years.
died of shock or committed suicide after the death of their chief
minister Y.S. Rajasekhara Reddy, prompting his MP son Y.S.
JaganmohanReddy to appeal to the people to be stoic and brave. “ YSR dedicated his life to people, I am dedicating my life to
him,”
'I appeal to all of you to be stoic and brave in this hour of – a youth wrote in his suicide note before consuming
tragedy. He (YSR) wanted to see a smile on the faces of all and if pesticide.
you resort to such things (suicide) this will hurt him,' said
Jaganmohan,trying hard to control his tears.

Profile
YSR Reddy: an astute politician
r. Yeduguri Sandinti Rajasekhara Reddy, popularly After completing MBBS, he served

D known as YSR, was an astute politician and a


charismatic mass leader who had carved for himself a
niche in State politics by his exemplary devotion and dedication
to the upliftmentof the downtrodden and neglected segments of
as Medical Officer at the
Jammalamadugu Mission Hospital for
a brief period. In 1973, he established a
70-bed charitable hospital, named after
society. Born on July 8, 1949, in Pulivendula in the backward his father late YS Raja Reddy at
Rayalaseema region, YSR had always struggled to secure the Pulivendula. His family established one
rights of the poor and the underprivileged. polytechnic and one degree college in
Pulivendula, which were later handed
Son of late Sri YS Raja Reddy, a dynamic leader in his heyday, over to the well-known Loyola group of
Rajasekhara Reddy evinced interest in politics right from his institutions.
student days. While studying in MR Medical College, Gulbarga,
Karnataka, he served as president of the Students union. He was Rajasekhara Reddy's sound business acumen,
elected leader of the House Surgeon's Association in SV Medical entrepreneurial skills, and, above all, his transparency brought
College,Tirupati. him laurels in the business arena. On the flip side, his success

06 PT’s PrepTalk – September 2009


also brought him many adversaries, political and otherwise, who his leadership in August 2000 to register protest against the hike
were desperately looking for a shred of evidence to prove in power charges is still fresh in the memory of people. By
umpteen charges against him. In the end, their mud-slinging systematically exposing the misdeeds of the then Government,
did not yield a single point that could paint the mass leader in both inside and outside the Assembly, YSR was playing his
bad light. In fact, his detractors became red-faced, as they had to political role to the hilt.
swallow their words.
During mid-summer in 2003, he led an unprecedented 1400
Groomed by a family deeply involved in public service, YSR Km long Paadayaatra covering all backward areas in the state to
entered active politics in 1978 and contested elections, four understand the ground realities of living conditions of the
times to enter the State Legislative Assembly and an equal people there.
number of times to enter the Lower House of Parliament. A
winner in all that he does, YSR won all the elections he Amidst a bewildering number of turncoats among
contested. Even today his admirers exclaim: "He (YSR) defeats politicians, who thrive in "shifting loyalties", YSR stands out as a
defeat." sterling exampleof the old guard in pristine Indian politics.

During his 25-year-long political career, YSR has served the YSR'S PERSONALITY
people in multiple capacities, both in Government as well as in
Party. He was President of the Andhra Pradesh Congress
Committee (APCC) twice - 1983-1985 and 1998-2000. During A MODEST PERSONALITY:
1980-1983, he was a minister holding
important portfolios related to Rural Dr.Reddy, unlike most politicians,
Development, Medical & Health and reflects the spirit of a true Indian who
Education etc. From 1999 to 2004 he walks his talk.While his thought was
was the Leader of Opposition in the dressed with all that is modern and
eleventhstate assembly. ennobling, Dr.Reddy's person was
invariably clothed in traditional
As a champion of the masses, his costumes that include dhoti and a
stentorian voice in the assembly, shirt made of handloom cloth. In all of
raised particularly during debates his public and private conversations,
that sought to lend voice to the he spoke from the core of his heart.
voiceless millions, forced the Naturally, he hate hypocrisy.
Government to retrace several anti-
people steps it contemplated.YSR has As a demanding chief minister,
been instrumental in orchestrating YSR expected bureaucrats to do their
several mass struggles, while job meticulously, and present before
highlighting issues facing peasants, him only facts that are shorn of all
weavers,Dalits, youth and women. publicity-oriented and manipulative
figures. He did not tolerate hype and
His relentless fight for clearance extravaganza in communicating
of pending irrigation projects, particularly in the backward official messages. He wanted incontrovertible facts stated in a
Rayalaseema region, has earned for him a special place in the simple language that is intelligible even to the unlettered,
hearts of millions of farmers. His unremitting struggle against because taking administration to the people was an article of
certain anti-people economic measures that were sought to be faith for him.
introduced in the name of "reforms", including the frequent
increases in power tariff and indiscriminate privatization of HIS PHILOSOPHY OF LIFE:
public sector units, exalted him far above the street smart
politicians. Dr. Rajasekhara Reddy strongly believed that the human life
is a boon provided by the Almighty to share one's blessings with
Even as a novice in the legislature, YSR rallied all the others, while serving less privilegedhuman beings.
Congress MLAs from the Rayalaseema region and led an
indefinite hunger strike demanding solution to the water crisis. "Don't count the years you want to live. Ask yourself how
He also led a Paadayaatra from Lepakshi to Pothireddipadu in much you have done for society at large with whatever
Kurnool district. The 14-day hunger strike of legislators under opportunities the Almighty has provided you", was Dr. Reddy's

PT’s PrepTalk – September 2009 07


word of advice for those who have excuses for not doing even Even after becoming the Chief Minister in May 2004, Dr
what is within their means. It is this humane principle that Reddy made it a point to address all the problems that were
prompted him to take pioneering steps to ensure delivery of brought before him directly by people, cutting through
social security pensions to the needy in the first week of every bureaucratichurdles, every day.
month.
If any scheme or programme under formulation was placed
HIS STATURE: before him for approval, its outcome was a foregone conclusion
that was dependent on Dr. Reddy's invariable query: "How best
Though measuring 5'7", Reddy looked majestically simple in will it benefit the people at large or ensure good governance?"
his appearance with an ever-smiling genial countenance. This
in fact overshadowed his unfailing willpower to achieve his HIS 'PASTIME':
targets with the resilienceand tenacity of a spider.
A curious 'pastime' of Dr Reddy was to feel the pulse of
When YSR undertook his unprecedented 1500-KM-long people in rural areas on Sundaysthrough the Rajiv Palle Batta.
Padayaatra (march on foot) in scorching sun during summer in
2003, covering backward areas of the state in particular, few The Rajiv Palle Baata was a novel mass contact programme
people could discern the underlying motive: knowing first-hand under which the Chief Minister reached out to even
the real problems of the people in their own language and their unmotorable areas in the rural areas for personally collecting
doorstep. feedback on the implementation of various programmes. This
programme had become extremely popular, because it
HIS MISSION: highlighted not what the Chief Minister did in the glare of
official publicity, but what his officials may not have done in the
As around 75% of the population in India depends upon people's own words.
agriculture for livelihood, most administrative efforts should be
focused on the rural economy, he believed. In view of the rational changes brought about in
administrativematters followingthe success of Rajiv Palle Baata,
Citing renowned economists, Dr. Reddy regreted that the Chief Minister now extended the programme to urban areas
neglect of the agriculture and irrigation sectors in recent years through Rajiv Nagara Baata.
have become the bane of rural economy. As a proactive chief
minister, he embarked upon a massive programme of executing HIS APPROACH:
26 major irrigationprojects to create 65 lakh acres of new ayacut.
The chief minister's emphasis on development of the rural
HIS MOTTO: economy did not presuppose a blinkered approach towards new
and emerging technologies.
Dr. Reddy's motto was that the ultimate objective of any
program executed under a democratic set-up should be prompt Dr.Reddy was committed to a balanced approach towards
and dependabledelivery of sevices to the commonman. giving thrust to information technology, bio-technology and all
sectors that enhance industrial and agricultural production. His
With this as the guiding principle, YSR had advised watchword was total
bureaucrats at all levels to help revive the functioning of the transparency in all transactions
administrative system at all levels without habitually looking for and deals that envisage public-
autocratic 'diktats'. 'Decentralisation of administrative power private partnerships or involve
within the guidelines of the policy framed by the government private investments. Because,
reflected the true spirit of democratic governance", Dr. Reddy YSR believed he was simply a
argues. custodian of people's trust that
is invaluable.
HIS STRENGTH:
It was not a coincidence
Dr Reddy's strength lay in his stature as a mass leader since that he loved the company of
his advent in politics. Whether in or out of power, he had always children and often "got lost" in
championed the cause of the common man. This had endeared their World that was founded
him to all segmentsof the Congress party as well. on trust of the highest order.

08 PT’s PrepTalk – September 2009


Major news stories

55th National Awards:


Prakash Raaj Bags Best Actor
T he National Film Awards for
2007 were announced on
September 7, 2009. It is neither
Shah Rukh Khan nor Aamir Khan but
Tamil actor Prakash Raaj who has won
the best actor award for 2007 for his
p e r f o r m a n c e i n Ta m i l f i l m
"Kanchivaram".

Raaj had earlier won the best


supporting actor award for his film
"Iruvar" in 1998 and a special jury award
in 2003.

Umashree got the best actress


award for her performance in Girish
Kasaravalli's Kannada film "Gulabi
Talkies".
Lyricist Prasoon Joshi got the award for the best lyrics for
"Kanchivaram" has also been chosen as the best film for "Maa" from "Taare Zameen Par". The song also got Shankar
2007. Directed by Priyadarshan, the film depicts the lives and Mahadevan the National Award for best playback singer.
times of silk-weavers of Kancheepuram in pre-Independent
India. Farah Khan's Om Shanti Om bagged the best art direction
award for Sabu Cyril while choreographer Saroj Khan won an
Renowned Malayalam director Adoor Gopalakrishnan has award for the song 'Yeh Ishk Hai' in Jab We Met.
been adjudged best director for "Naalu Pennungal".
Bhavna Talwar's directorial debut Dharm, which deals with
The best child actor award went to Sharad Goyekar for his communal harmony in the religious city of Varanasi, won the
role in the Marathi film "Tingya". Nargis Dutt Award for best film on national integration.

Darshan Zariwala got the best supporting actor award for The Indira Gandhi Award for best first film of a director
his role in "Gandhi My Father". Feroz Abbas Khan, the director went to Shivajee Chandrabhushan for Frozen, which also won
of the film, bagged the National Award for best screenplay. the best cinematography award.
There was also a special jury award for this film, which
explores the troubled relationship between Harilal Gandhi Foto (Hindi) won the best children's film award, while Inimey
and Mahatma Gandhi. Naangathaan (Tamil) won the best animation film award.

Best Supporting Actress award went to Shefali Shah for her Hindi film 1971 won the best audiography award and it also
performance in The Last Lear. won the award for best film in Hindi under the language
specified in schedule VIII of the Constitution category.
But the Khans were not disappointed with Aamir Khan's
directorial debut “Taare Zameen Par” made the 'Best Family The jury was headed by Sai Paranjpe; other members
Welfare Film' and Shah Rukh Khan starrer “Chak De India” included Ashok Viswanathan and Namita Gokhale. About 102
taking home the trophy for 'Best Overall Entertainer'. films and 106 non-feature films were considered.

PT’s PrepTalk – September 2009 09


Cover story

Flight of the dragon out of


The Great Wall
S ince man has learnt to live
as a society his innate
hunger for power and
greed for questionable luxury has
MODERN HISTORY
In the year 1910 ,young
officials, military officers,
forced him to wage wars against
and students, inspired by
his own kind. One country which
the revolutionary ideas of
has seen this happen on its land
Sun Yat-sen, began to
time after the other is China. It is
advocate the overthrow of,
the land that has seen rise and fall
then ruling, the Qing
of civilizations and dynasties as
Dynasty and the creation of
that of tides in a full-moon night.
a republic. Slavery in China
was abolished in 1910.
HISTORY
A revolutionary military
Chinese civilization uprising, the Wuchang
originated in various city- Uprising, began on Oct. 10, Sun Yat-sen,
states along the Yellow River 1 9 1 1 i n Wu h a n . T h e founder and first president of
valley in the Neolithic era. The provisional government of The Republic of China.
written history of China begins the Republic of China was
with the Shang Dynasty formed in Nanjing on March 12, 1912 with Sun Yat-sen as
(1550BC - 1046 BC). The President, but Sun was forced to turn power over to Yuan Shikai,
origins of Chinese culture, who commanded the New Army and was Prime Minister under
literature and philosophy, the Qing government, as part of the agreement to let the last
developed during the Zhou Qing monarch abdicate (a decision Sun would later regret).
Dynasty (1045BC - 256 BC) Over the next few years, Yuan proceeded to abolish the national
that followed the Shang. It was and provincial assemblies, and declared himself emperor in late
the longest lasting dynasty and 1915. Yuan's imperial ambitions were fiercely opposed by his
spans the period in which the subordinates; faced with the prospect of rebellion, he abdicated
written script evolved from in March 1916, and died in June of that year. His death left a
ancient oracle script to the beginnings of modern Chinese power vacuum in China; the republican government was all but
writing. In 221 BC, Qin Shi Huang united the various warring shattered. This ushered in the warlord era, during which much
kingdoms and created the first Chinese empire. Successive of the country was ruled by shifting coalitions of competing
dynasties in Chinese history developed bureaucratic systems provincial military leaders.
that enabled the Emperor of China to directly control the vast
territories. Hence a major civilization came into being. In 1919, the May Fourth Movement began as a response to
the insult imposed on China by the Treaty of Versailles ending
The conventional view of Chinese history is that of a dynasty World War I, but quickly became a protest movement about the
alternating between periods of political unity and disunity and domestic situation in China. The discrediting of liberal Western
occasionally becoming dominated by foreign Asian people, most philosophy amongst Chinese intellectuals was followed by the
of who were assimilated into the Han Chinese population. adoption of more radical lines of thought. This in turn planted
Cultural and political influences from many parts of Asia, the seeds for the irreconcilable conflict between the left and
carried by successive waves of immigration, expansion, and right in China that would dominate Chinese history for the rest
assimilation, merged to create modern Chinese culture. of the century.

10 PT’s PrepTalk – September 2009


In the 1920s, Sun Yat-Sen established a revolutionary base in China, today, is the largest country in East Asia and the most
south China, and set out to unite the fragmented nation. With populous in the world with over 1.3 billion people, approximately
Soviet assistance, he entered into an alliance with the fledgling one-fifth of the world's population. It is a socialist republic
Communist Party of China (CPC). After Sun's death from (specifically a people's democratic dictatorship according to its
cancer in 1925, one of his protégés, Chiang Kai-shek, seized constitution) ruled by the CommunistParty of China under a
control of the Kuomintang (Nationalist Party or KMT) and single-party system, and has jurisdiction over twenty-two
succeeded in bringing most of south and central China under its provinces, five autonomous regions, four municipalities, and
rule in a military campaign known as the Northern Expedition. two largely self-governing Special Administrative Regions
Having defeated the warlords in south and central China by (Hong Kong and Macau). The PRC's capital is Beijing.
military force, Chiang was able to secure the nominal allegiance
of the warlords in the North. In 1927, Chiang turned on the CPC China's importance in the world today is reflected through
and relentlessly chased the CPC armies and its leaders from its role as the world's third largest economy (second largest by
their bases in southern and eastern China. In 1934, driven from PPP) and a permanent member of the UN Security Council as
their mountain bases such as the Chinese Soviet Republic, the well as being a member of several other multilateral
CPC forces embarked on the Long March across China's most organizations including the WTO, APEC, East Asia Summit,
desolate terrain to the northwest, where they established a and Shanghai Cooperation Organization. In addition, it is a
guerrilla base at Yan'an in Shaanxi Province. recognized nuclear weapons state and has the world's largest
standing army with the second largest defense budget.
During the Long March, the
communists reorganized under
EFFORTS TO PAINT THE WORLD RED
a new leader, Mao Zedong or
Mao Tse-tung. The bitter
The dragon has unfolded its
struggle between the KMT and
wings and is ready to fly big!
the CPC continued, openly or
clandestinely, through the 14-
With one simple mission in
year long Japanese occupation
mind, i.e. to sore high in the skies
(1931-1945), of various parts of
of international diplomacy and to
the country. The two Chinese
gain new grounds…….literally!!!
Mao Tse-tung parties nominally formed a
united front to oppose the
Japanese in 1937, during the With Beijing committed to
Sino-Japanese War (1937-1945), which became a part of World keep its people occupied with
War II. Following the defeat of Japan in 1945, the war between the some or the other agenda, so that
KMT and the CPC resumed, after failed attempts at they do not repeat incidents like
reconciliation and a negotiated settlement. the one in Xinjiang and show no
disregard towards their
By 1949, the CPC had occupied most of the country. At the compromised RIGHT TO
end of WWII in 1945 as part of the overall Japanese surrender, SPEECH, China is taking well calculated steps. Be it time to
Japanese troops in Taiwan surrendered to Republic of China time incursion into the Indian territory (which, by the way,
troops giving Chiang Kai-shek effective control of Taiwan. When China claims to be her own) or be it forceful suppression of
Chiang was defeated by CPC forces in mainland China in 1949, protest in Tibet which now is under Beijing's control and a part
he fled to Taiwan with his government and the remnants of his of China's mainland. This is done also to show the world and
army, along with most of the KMT leadership and a large USA what it is really capable of. Signs are pretty clear. Dragon is
number of their supporters. set to paint the world-red. How far does China gets with this
intention, only time will tell but this is surely going to affect its
With the CPC's victory, and their proclamation of the present relationship with many-a-countries.
People's Republic of China on October 1, 1949, Taiwan was again
politically separated from mainland China, and continues to be SINO-INDIA RELATIONS
governed by the Republic of China to the present day. No peace
treaty has ever been signed between the two opposing parties. Sino-Indian relations, also called India-China relations,
Hence China of what we know today is actually People's Republic refer to the ties and relations between China and India. The
of China or PRC. Taiwan, on the other hand is Republic of economic and diplomatic importance of People's Republic of
China. China (PRC) and the Republic of India, which are the two most

PT’s PrepTalk – September 2009 11


populous states in the world, as emerging economies, has in world's largest army with over 7 million arms personnel in all,
recent years increased the significance of their bilateral which outnumbers India by almost double, but also has a wide
relationship. Historical relations between Beijing and New array of military equipments all being state-of-art, thanks to her
Delhi can most accurately be described as being controversial at defense budget which is more than 70 billion US$, again more
best. Their relationship has undergone times of both war and than twice of that of India. Practically speaking a war of any scale
peace. It has been characterized by both border disputes, with China at this juncture will prove fatal for India.
resulting in military conflict, and by economic cooperation. The
dispute over the border is because of difference in the stands of SINO-AMERICAN RELATIONS
governments at both the sides. The McMahon Line is the
effective boundary between China and India.
Most analysts have
The line is named after Sir Henry McMahon, foreign characterized present Sino-
secretary for the British-run Government of India and the chief American relations as
British negotiator of the convention. It came into being as part of complex and multi-faceted,
Shimla Accord; a treaty signed in 1914 and was agreed upon by with the United States and the
British India and Tibet. Although its legal status is disputed, it People's Republic of China
extends for 550 miles (890 km) from Bhutan in the west to 160 being neither allies nor
miles (260 km) east of the great bend of the Brahmaputra River enemies. Generally, the
in the east, largely along the crest of the Himalayas. The American government and
McMahon Line is military establishment do not
regarded by India as the regard the Chinese as an adversary, but as a competitor in some
legal national border. The areas and a partner in others. At the same time, it is
Dalai Lama's Tibetan acknowledged that the nature of Sino-American relations will be
government-in-exile also a major factor in determining the fate of the world in the 21st
accepts the line as an century.
official border. China
rejects the Shimla Accord, The U.S. has the world's largest economy. China's economy
contending that the is the second largest. The two countries are the two largest
Tibetan government was consumers of motor vehicles and oil. They are the largest
not sovereign and emitters of greenhouse gases and thus have a disproportionate
therefore did not have the power to conclude treaties. Chinese impact on climate change.
maps show some 56,000 square miles (150,000 km2) of the
territory south of the line as part of the Tibet Autonomous Relations between the People's Republic of China and the
Region, popularly known as South Tibet in China. Chinese United States have generally been stable with some periods of
forces briefly occupied very small portions of this area during tension, especially after the fall of the Soviet Union, which
the Sino-Indian War of 1962-63. China does recognize a Line of removed a common enemy and ushered in a world characterized
Actual Control (LAC) which includes the "so called McMahon by American dominance. There are also grievances which relate
line," according to a 1959 diplomatic note by Prime Minister to human rights in the People's Republic of China and the
Zhou Enlai. political status of Taiwan.

There have been times when relationship between India and While there are many irritants in Sino-American relations,
China have been sour. Giving shelter to Dalai Lama is one of the there are also many stabilizing factors. The People's Republic of
reasons. China wants India to refrain from giving shelter to this China and the United States are major trade partners and have
Tibetan religious and political figure whereas India advocated common interests in the prevention and suppression of
that since Lama has come to India as a refugee, he can stay as terrorism and in preventing nuclear proliferation. While the end
long as he wants. Recently, even as India prepares to celebrate 50 of the Cold War removed a common enemy, the War on Terror
years of friendship with China next year, China in-turn has has produced a new common enemy, which has stabilized
increased activities along the LAC, be it invasion of Indian air relations to some degree.
territory or writing CHINA on Indian mountains or
construction of road along the Himalayan range. In addition, while there is still a great deal of Chinese
mistrust at American intentions, there is also the realization that
But why does Indian government pay no real heed to all these the United States will likely remain a sole superpower for a great
incidences? The answer is simple. China not only houses deal of time, and any direct challenge to the United States'

12 PT’s PrepTalk – September 2009


position is likely beyond PRC's capability for several decades. The politically correct term "cross-Strait relations" has been
There is also a realization that most of PRC's challenges and adopted by the two sides concerned and many observers so that
difficulties are internal, and therefore there is a desire on the the relationship between mainland China and Taiwan would not
part of the PRC to maintain stable relations with the United be referred as "China–Taiwan relations" or "PRC–ROC
States. The Sino-American relationship has been described by relations". The former term implies the exclusion of Taiwan
top leaders and academics as the world's most important from China, and is considered non-neutral. The latter term
bilateral relationship of the 21st century. implies the co-existence of the two governments as states, and
does not reflect the official positions of either government.
Americans tend to see China as a far off and distant land. There is also no commonly used Chinese language term
Since the 19th century, there has been a missionary impulse in equivalent to the latter two terms.
American dealings with China, and the United States often
believes that as part of its mission to advance freedom and PRESENT STATUS
democracy, it has the duty to advance the cause of human rights
in China. Over the past 150 years, Americans have also tended to On September 2, 2008,
see the Chinese people as oppressed and abused by either the the ROC President Ma
Japanese in World War II and more recently by the Communist Ying-jeou was interviewed
Party of China. Americans do not generally accept the notion by the Mexico based
that many Chinese support the PRC government, because of its newspaper Sol de Mexico
authoritarian nature, and are critical of the non-democratic and he was asked about his
government's ability to make decisions to benefit the Chinese views on the subject of 'two
people. Americans tend to believe that any authoritarian Chinas' and if there is a
government is necessarily intolerable — a viewpoint not shared solution for the sovereignty Ma Ying-jeou
by most Chinese. As a result, Americans tend to be baffled by the issues between the two. The ROC President replied that the
suggestion that most Chinese people find American criticism of relations are neither between two Chinas nor two states. It is a
human rights "abuses" to be hypocritical and meddlesome. special relationship. Further, he stated that the sovereignty
issues between the two cannot be resolved at present, but he
CROSS-STRAIT RELATIONS quoted the '1992 Consensus', currently accepted by both sides,
as a temporary measure until a solution becomes available. The
Cross-Strait relations refers to the relations spokesman for the ROC Presidential Office Wang Yu-chi later
between mainland China and Taiwan or the elaborated the President's statement and said that the relations
relations between their respective are between two regions of one country, based on the ROC
governments, the People's Republic of China Constitutional position, the statute governing the relations
(PRC) and the Republic of China (ROC). between the peoples of the Taiwan Area and Mainland Area and
the '1992 Consensus'. On 7 October 2008 Ma Ying-jeou was
In 1949, with the Chinese Civil War turning decisively in the interviewed by a Japan based magazine “World”.
Communists' (CPC) favour, the ROC government led by the
Kuomintang (KMT) retreated to Taipei, in Taiwan, while the He said that laws relating to international relations cannot be
CPC proclaimed the PRC government in Beijing. Since then, applied regarding the relations between Taiwan and mainland
the relations between mainland China and Taiwan have been China, as they are parts of a state. This statement though, as
characterized by non-contact and animosity. In the early years, many others in the world diplomatic arena, is open to one's own
military conflicts continued, while diplomatically both interpretation.
governments competed to be the legitimate government of all
China. More recently, the legal and political status of Taiwan has CHINA JAPAN RELATIONSHIP
become more controversial, with the expression of Taiwan
independence sentiments in Taiwan which were formerly China and Japan are
outlawed. At the same time, there has been increasing non- geographically separated by only a
governmental and semi-governmental exchanges between the narrow strip of water. China has
two sides. From 2008, negotiations began to restore the "three strongly influenced Japan with its
links" (transportation, commerce, and communications) writing system, architecture,
between the two sides, cut off since 1949. Party-to-party talks culture, religion, philosophy, and
between the CPC and the KMT have resumed and semi-official law. When Western countries
negotiations through organizations representing the interests of forced Japan to open trading in the
their respective governments are being scheduled. mid-nineteenth century, Japan moved towards modernization

PT’s PrepTalk – September 2009 13


(Meiji Reformation), viewing China as an antiquated CHINA–RUSSIA RELATIONS
civilization, unable to defend itself against Western forces
(Opium Wars and Anglo-French Expeditions from 1840s- Sino-Russian relations have never been better. But despite
1860s). Japan's long chain of invasions and war crimes in China some significant successes, their bilateral engagement
between 1894 and 1945 as well as modern Japan's attitude continues to be partial and ambivalent.
towards its past are major issues affecting current and likely,
future Sino-Japanese relations. Russia and China have
contrasting world-views,
Japan and China are different approaches to
respectively the world's second foreign policy and
and third-largest economies. In sometimes conflicting
2008, China-Japan trade grew to priorities. There is no
$266.4 billion, a rise of 12.5 genuine 'China card' in
percent on 2007, making China Moscow's energy relations
Japan's top two-way trade with the EU. The threat to
partner. China was also the divert Russian gas
second biggest destination for eastwards is bogus. The
Japanese exports in 2008 with Japanese exports to China totaling Sino-Russian partnership does not threaten western interests.
$124.2 billion, up 13.8 percent. Moscow and Beijing are more interested in engaging with the
West than with each other.
But there are some grey shades to this story as well. The
relationship commercially does in no way reflects the true state Over the past two decades, a once acrimonious relationship
of relationship politically. has evolved into one of the success stories of the post-Cold War
era. This startling transformation has provoked polarized
There are some issues that this relationship faces the wrath reactions. Unsurprisingly, Moscow and Beijing celebrate the
of. The PRC joined other Asian countries, such as South Korea, progress in their relationship, both for its own sake and as an
North Korea and Singapore, in criticizing Japanese history influential factor in world politics. But many outsiders see this
textbooks that whiten Japanese war crimes in World War II. They apparent confluence of values and interests as inimical to the
claimed that the rise of militarism became evident in Japanese West.
politics. Much anti-Japanese sentiment were raised, and this
had been exacerbated by burgeoning feelings of Chinese Although the Sino-Russian partnership has elicited growing
nationalism and former Prime Minister Junichiro Koizumi's interest in recent years, it continues to be more a subject of
visits to the Yasukuni Shrine. There also remains the dispute polemic than reasoned analysis. This policy brief aims to set the
over the Senkaku Islands (Diaoyu Islands), which has resulted record straight and to do so in the form of ten defining
in clashes between Taiwanese (Chinese) protesters and the propositions. Each proposition focuses on a key aspect of the
Japanese government. complex dynamic between Moscow and Beijing. Taken together,
they encapsulate an interaction that is at once co-operative,
The latest disputes, in April 2005, have led to anti-Japanese ambivalent and much misunderstood.
protests and sporadic violence across the PRC, from Beijing to
Shanghai, later Guangzhou, Shenzhen and Shenyang. Relations are better than at any time in history. Russian and
Furthermore, the PRC and Japan continually debate over the Chinese leaders routinely claim that bilateral relations have
actual numbers killed in the Rape of Nanking. The PRC allege at never been better. They are right. In every dimension, there has
least 300,000 civilians were murdered while Japan argues it to be been significant progress over the past 20 years. The 4,300
far less. Some questions if the Rape of Nanjing even occurred; a kilometer border was agreed in its entirety in October 2004,
Japanese-produced documentary film released just prior to the thereby resolving a territorial dispute dating back more than
60th anniversary of the massacre, titled The Truth about 300 years. The Chinese still lament the "lost one-and-a-half
Nanjing, denies that any such atrocities took place. These million square kilometers transferred to the Russian Empire as a
disputes have stirred up enmity against Japan from the global result of a series of 'unequal treaties' in the nineteenth century.
Chinese community, including Taiwan. There is a Japanese But there is no interest in regaining these territories, least of all
newspaper article from 1937 that reports a murdering contest by force. With the frontier now settled, there are no
between two Japanese officers who killed more than 200 outstanding bilateral disputes. The once controversial issue of
Chinese civilians combined. Both soldiers survived the war and Chinese 'illegal migration' into the Russian Far East has been
were executed by the Chinese government after extradition. largely defused. Trade is booming.

14 PT’s PrepTalk – September 2009


After a period of stagnation in the 1990s, there has been an multipolar world is a distant prospect. Iraq and Afghanistan have
eight-fold increase over the past decade, from $5.7 billion in inflicted severe damage on American prestige, but there is still
1999 to $48 billion in 2007. This is projected to increase to $60 no centre of power remotely comparable to Washington.
billion by 2010.The two countries are in substantial agreement Ironically, the current global financial crisis reinforces this
on many international issues. Moscow subscribes fully to the point: when America sneezes, the world catches cold. Beijing
one-China policy and supports Chinese mediation efforts in also sees the concert of great powers as a largely western
the Korean peace process. Beijing has consistently backed construct. The G-8 exemplifies this: it includes Russia and
Russia on a long list of regional and international issues: Japan (an honorary western power), but excludes China, India
Chechnya, Iraq, missile defense, NATO enlargement, Iran, and Brazil. Moscow's lack of enthusiasm for expanding the G-8
Kosovo, the Middle East peace process. China poses no military into a G-13/G-14 highlights the western-centric essence of
or demographic threat to Russia. One of the paradoxes in the concert ideas even today.
Sino-Russian relationship is the contrast between
the talking-up of strategic partnership and the Another area of divergence arises from the rapidly
persistent under-current of a 'China threat'. changing balance of power within the bilateral
Russian commentary is much more relationship. Beijing scarcely envisages Russia as a
positive than in the 1990s, but this threat strategic equal in a future world order. Its longer-
remains implicit. term vision is based more on a new bipolarity
between China and the US -
But then there are differences e i t h e r a
here as well. Russia and China condominium or a
have very different visions of a growing rivalr y.
post-unipolar world. Moscow Russia will continue
aspires ultimately to a tripolar to occupy an
system in which the US, Russia important place in
and China are strategic equals international
and where Russia acts as the affairs, but as a
natural bridge between East and secondar y great
West. In the meantime, it strives to recreate power, along with
the nineteenth century concert of great powers in Japan, India and the
place of the western-dominated institutions formed at the end EU. Russia s ambition to become the "interface" between
of the Second World War. Like the original, such a concert would East and West is dismissed as fantasy.
be a de facto condominium of great powers - 'a multipolar world
order' - that would collectively manage the world's affairs. Russia Driven with the urgent need to become the world power
would reclaim its 'birthright' as a leading global player. China may come up with acts and ideas that may one time again
write history but in the near future even she knows that throne is
Beijing, on the other hand, believes that the US will remain still a long way to go. How long will that be is something that only
the sole superpower for the foreseeable future and that a time will tell.

Facts and Figures of Beijing Olympic Games


Items Description Rank Countries/
Sports/ events 28/302 Regions G S B Total
Gold Medals 302
1 China 51 21 28 100
Athletes 10,708
2 USA 36 38 36 110
Competition Venues in Beijing 31
Competition Venues outside Beijing 6 3 Russia 23 21 28 72
Accredited Written Press & Photographers 5,600 4 UK 19 13 15 47
Rights Holding Broadcaster staff 12,000 5 Germany 16 10 15 41
BOB staff 4,000
Olympic Games Volunteers 70,000

PT’s PrepTalk – September 2009 15


Current events

India
ASSEMBLY ELECTIONS IN MAHARASHTRA, HARYANA, He also asked the DEO to retain a master copy of the CD, so
ARUNACHAL PRADESH ON OCT.13 that it will help the commission to produce the details in case of
any writs were filed in the court relating the election disputes.
Election Commission of India (ECI)
announced Electronic Voting Machines tututu
will be used in all the three States–
Maharashtra, Haryana, and Arunachal INDIA BEAT SYRIA TO WIN NEHRU CUP TOURNAMENT
Pradesh – that undergo elections on
October 13. Defending champion India beat Syria by 5-4 in a penalty
shootout in a
The single-phased elections will be held for total 438 State thrilling final match
Assembly seats – 288 (Maharashtra), 90 (Haryana), and 60 to win the ONGC
(Arunachal). Nehru Cup football
tournament held at
Addressing a press conference, Chief Election the Ambedkar
Commissioner Naveen Chawla said that the three States of Stadium.
Maharashtra, Haryana, and Arunachal Pradesh will undergo
Assembly elections of October 13 and the counting will be held The win came
on October 22. after a nail-biting
finish as no goals
He added that the decision has been taken after could be scored in the normal time, and had to be decided on
considering the all the factors including public holidays, penalty shoots, where India missed just two shots, while Syria
academic calendar, climatic conditions, time required to missed three of the seven shots.
deployment of forces etc.
Goalkeeper Subroto Paul was awarded the man of the match
The voting will be done through Electronic Voting Machines for his superb performance in the match.
(EVMs). Use of any religious place for election campaigning and
seeking votes on the basis of religion or Jaati will amount to Led by its star striker Bhaichung Bhutia, India entered the
violation of code of conduct for elections, the CEC said. third consecutive final of the Nehru Cup and anticipations were
high, as they had defeated Syria in the 2007 final.
The notification of the election would be issued on
September 18, the last day for filing of nomination will be Indian team had strikers in the form of Bhutia and Sunil
September 25, scrutiny of nomination will be held n September Chettri, while Anthony Pereira, N.P. Pradeep, Climax Lawrence
26, and the last day for withdrawing of nomination will be and Steven Dias handled midfield.
September 29. The election process will complete on
October 25. Defence was well held by Mahesh Gawli, Anwar, Gourmangi
Singh and Surkumar Singh.
Chawla also said a camera will be installed in each and every
polling booth and the CD will remain with the custody of the The tournament had been quite difficult for the home team,
District Election Officer (DEO). Any individual, who would like as they had won two and lost two league matches, including one
to have a copy of the CD, can get the same from the DEO by against Syria. On the other hand Syria, with a strong defence,
paying the prescribed fee. had won all their league matches.

16 PT’s PrepTalk – September 2009


CBSE SCHOOLS TO HAVE GRADING SYSTEM FROM FIRST ROUND OF INDO-SWISS TALKS ON BLACK MONEY
ACADEMIC YEAR 2010-11 TO BE HELD IN DECEMBER
The Government announced The first round of consultations
that it will introduce grading between New Delhi and the Swiss
system in all Central Board of Government on tracing the black
Secondary Education (CBSE) money deposited in tax havens in
schools and make Class X board that countr y will be held in
exams optional from coming December.
academic year (2010-11).
However, there is no guarantee of
Union Human Resource prosecution of offenders on the basis of information secured
Development minister Kapil Sibal, during a press conference in from them.
the national capital, said: "Central Advisory Board of Education
(CABE) supports making Class X examination optional in According to Finance Ministry sources, Indian officials will
CBSE system." have their first round of discussions with officials of Swiss
government to evolve a legal system that will enable India to
"There is a pan-India consensus over the issue. So we have trace black money.
decided to go ahead with this," Sibal said.
They said that such a system could be evolved through a
The Class X board exams will become optional in all CBSE Double Taxation Avoidance Treaty (DTAT) with Switzerland on
schools from the coming academic year (2010-11). the model of the agreements reached with countries of the
Organisation of Economic Cooperation and Development
As per sources, the CBSE has prepared the format of an (OECD).
aptitude exam which schools can use to test Class X students on
their level of understanding in each subject. The emphasis, Although, the DTAT could lead to information being
however, will be on continuous and comprehensive evaluation
secured from Switzerland in specific cases (in which individuals
(CCE) through the year instead of a single public exam at the
would have violated laws in India), but it cannot guarantee that
end of Class X.
such persons could also be prosecuted for that offence, they
pointed out.
tututu
Getting information from the Swiss banks was not an easy
CCEA REVIEWS PRICES OF ESSENTIAL COMMODITIES task, and Indian government will have to become eligible to ask
for such information under a proper bilateral treaty.
The Cabinet Committee
on Economic Affairs (CCEA) Recently, the US government successfully tracked some
reviewed the prices of cases of American citizens stashing away their money there. The
essential commodities and US could even prosecute them.
observed that the major areas
of concern were prices of tututu
pulses and sugar.

The CCEA has said that


VICE ADMIRAL NIRMAL VERMA TAKES OVER AS NEW
several steps have been taken to increase the availability of NAVY CHIEF
pulses and sugar, which would help in controlling the price
increase. Vice Admiral Nirmal Kumar Verma took over as the new Navy
Chief.
The need to enforce stock limits, carry out de-hoarding
operations and use the powers available under the Essential Vice Admiral Verma has succeeded Admiral Sureesh Mehta
Commodities Act and the Prevention of Black-marketing and who retired on August 31, 2009. Born on November 14, 1950,
Maintenance of Supplies of Essential Commodities Act have Vice Admiral Verma was commissioned on July 1, 1970, into the
also been emphasised. Executive Branch of Indian Navy.

PT’s PrepTalk – September 2009 17


During his long and distinguished According to reports, JPSK Sports, promoter of the event in
service spanning nearly 39 years, he has India, has already acquired land for construction of a F1 track in
served in a variety of Command, Staff and Greater Noida and have started building the track.
Instructional appointments.
tututu
Vice Admiral Verma's Sea Command
includes Leander class Frigate "Udaigiri", INDIA AND NAMIBIA SIGN TWO BILATERAL
Guided Missile Destroyer "Ranvir" and
the Aircraft Carrier "Viraat".
AGREEMENTS ON ENERGY
India and Namibia on August 31, 2009
Before taking over as FOC-in-C, Eastern Naval Command,
he was Vice Chief of the Naval Staff at the Naval Headquarters. signed two bilateral agreements on Pan-
Namibian Network project and three
Vice Admiral Verma is an alumnus of Royal Naval Staff Memorandum of Understandings
College, UK and Naval War College, USA. He has instructional (MoUs).
experience at National Defence College as Senior Directing
Staff and at Defence Services Staff College, Wellington. He also The two bilateral agreements were in
commanded the Naval Academy at Goa. the field of communication and
cooperation in the field of peaceful uses of
Vice Admiral Verma was decorated with Param Vishist Seva nuclear energy.
Medal (PVSM) and Ati Vishist Seva Medal (AVSM). He is one of
the Honorary ADCs of the President of India. The memorandums related to exemption from Visa
requirement for diplomatic and official passports holders,
tututu Geology and Mineral Resources and cooperation in the field of
defence.
FORMULA ONE IS NOT A SPORT INSISTS SPORTS
After signing the bilateral agreements, Prime Minister
MINISTER GILL Manmohan Singh said that India is committed to help Namibia
in all spheres.
Union Sports Minister MS Gill
stuck to his remarks over Formula Namibian President Hifikepunye Pohamba said that he was
One (F1), and said that it is a source completely satisfied with the talks that he had with Manmohan
of entertainment and the Ministry's Singh.
focus is on other sports.
Both the countries were committed to Non-Aligned
Addressing media in the national Movement and wanted continuation of reform process of United
capital Gill said: “I will stand by my earlier comment that F1 is Nations, particularly democratisation of United Nations
not a sport. Our view on F1 not being a sport was taken months Security Council.
ago. This is the most expensive entertainment event in the west.
The technology used for the same is far beyond anything here.” tututu
“We are focused in promoting other sports. What they want
to do is their business, we are nowhere concerned with that,” he PAKISTAN MODIFYING US MISSILE POSED A DANGER
added. TO INDIA, SAYS SUREESH MEHTA
Gill's comments were a snub to Force India owner Vijay Outgoing Navy Chief Admiral Sureesh Mehta alleged that
Mallya, who had said that F1 was indeed a sport and was a viable Pakistan's attempt to modify Harpoon missile posed a danger to
sport in India. “When hundreds of millions of people worldwide India's interest.
follow it as a sport, what makes them believe otherwise?” Mallya
had said. As per media reports, the Obama administration have
protested to Pakistan for illegally modifying U.S.-made missiles
It is believed that Sports Minister's comment would have a to expand its ability to hit land-based targets.
significant influence on Mallaya's dreams of bringing F1 to India
in 2011. Citing senior administration and Congressional officials,

18 PT’s PrepTalk – September 2009


the reports said the charge came in late June through an On August 30, ISRO called off
unpublicized diplomatic protest to Prime Minister Yusuf Raza the maiden lunar mission after
Gilani and other top Pakistani officials. Indian Deep Space Network at
Byalalu near Bangalore lost control
The accusation, made amid over the Chndrayaan -I spacecraft.
growing concerns about Pakistan's
increasingly rapid conventional and Though Chandrayaan- I was
nuclear weapons development, slated to be a two-year mission,
triggered a new round of U.S.- Nair claimed that ISRO scientists have achieved nearly 95% of
Pakistani tensions, the report added. Chandrayaan's scientific goals in less than a year.

Reacting to the same, Mehta said that US authorities are tututu


constantly being told that their aid to Pakistan is not necessarily
used for self-defence. MANMOHAN SINGH WARNS OF ALARMING
MULTIPLE ENVIRONMENTAL CRISES
A senior Pakistani official called the accusation "incorrect,"
saying that the missile tested was developed by Pakistan, just as
Prime Minister Dr. Manmohan Singh said that the multiple
it had modified North Korean designs to build a range of land-
environmental crises that confront our country have created in
based missiles that could strike India, according to the Times.
many ways an alarming situation.
U.S. officials said the disputed weapon is a conventional one
Addressing at the National Conference
based on the Harpoon antiship missiles that were sold to of Ministers of Environment and Forests,
Pakistan during the Reagan administration as a defensive Dr. Singh said: "Climate change is
weapon, the newspaper reported, but the charges come as the threatening our fragile ecosystems. We are
Obama administration is seeking Congressional approval for 7.5 staring at the prospect of an impending
billion dollars in aid for Pakistan over the next five years. drought. Water scarcity is becoming a way
of life. Pollution is a growing threat to our
U.S. military and intelligence officials suspect Pakistan of health and to our habitats.”
modifying the Harpoon sold to them in the 1980s, which would
violate the Arms Control Export Act. "We have to make fundamental choices
about our lifestyles," he said, assuring his audience that the
Pakistan denied the charge and said it developed the missile, "challenges are not insurmountable".
the media report said.
Terming climate change as a major global challenge, he said:
According to experts, the missiles would bolster Pakistan's "We are conscious of our responsibilities to both the present and
ability to threaten India, stoking fears of heating up the two the future generations. We seek to enhance the ecological
nations' arms race. sustainability of our development path.”

tututu The Prime Minister sought the cooperation of all State


Governments to implement the eight missions that the Centre
ISRO TO LAUNCH MARS MISSION BY 2013 has outlined under the National Action Plan on climate change.

Indian Space research Organisation (ISRO) chairman G. "I would urge each State Government to create their own
Madavan Nair said that India would launch a mission to Mars by State level action plans consistent with the strategies in the
2013. national plans," he added.

The ISRO has begun the preparations for sending a Speaking on need to modernize the existing Forest and
spacecraft to Mars. Wildlife management system, he said that there are a large
number of positions of frontline personnel lying vacant in many
Earlier on Aug 13 the Union Government sanctioned seed states in the Forests and Wildlife sector.
money of Rs 10 crore for Mars project, to carry out various
studies on experiments to be conducted, route of the mission Underlining the need to ensure that local communities
and other related details necessary to scale the new frontier. benefit from forest, conservation, he said, Tribals have guarded

PT’s PrepTalk – September 2009 19


our forests for centuries. The Tribal Rights Act was the best way with the Deputy Commandant of
to guarantee these rights. CSIF and one channel is in my office
so that we can keep an eye on all the
The Prime Minister expressed concern that rivers all over people coming here," says N C
India were still being degraded. He referred to the increased Bansal, General Manager of NJPS.
allocation in this year's national Budget to clean rivers, and asked
state pollution control boards to curtail release of industrial To enter the power station one
effluents into waterways, "which account for 25 per cent of total has to go through three-tiered
pollution in rivers". security check, which is managed by CISF (Central Industrial
security Force). There are a total of 52 cameras installed in all
Drawing attention to the view that environmental clearances the key points to check the movement of people working and
have become a new form of Licence Raj and a source of coming to the station.
corruption, he said that this is a matter that needs to be
addressed head-on. The station usually produces 6.6 billion units of power a year
but this year it produced a record 1.14 billion units of power in
"There are trade-offs that have to be made while balancing the month July alone despite the drought-like condition.
developmental and environmental concerns. But the procedures
must be fair, transparent and hassle free. Decisions must be The power station generates the electricity worth 1400 crore
taken within a specified time," he said. Indian rupees annually. This year this power station has
generated the highest ever power Units despite the drought in
On discrepancies in the Environmental Impact Assessment the country.
(EIA) Reports, he said: "I would urge all the States who have not
yet established State EIA Authorities to do so at the very earliest. NJPS provides power to the entire north Indian states of
Effective coordination between the Union Ministry of Uttarakhand, Jammu and Kashmir, Uttar Pradesh, Punjab,
Environment and Forests and the State Ministry is vital if we are Haryana, Delhi, Rajasthan and Himachal Pradesh.
to build a credible and efficient system of assessment and
clearance.” Nathpa-Jhakri Power Station (NJPS) is the biggest
hydropower project, which produces 6.6 billion units of power a
"The recent introduction of the National Green Tribunal Bill year. The power plant in Rampur, nearly 140 kilometres from
in Parliament is a positive step forward. This will strengthen capital Shimla in the Himachal Pradesh state, is under a close
environmental adjudication and settlement of disputes. We surveillance to thwart any terrorist attack.
should consider setting up a National Environment Protection
Authority supported by regional Environment Protection tututu
Authorities," the Prime Minister added.
ISRO LAUNCHES DESI VERSION OF GOOGLE EARTH
tututu
Isro took a leap into satellite imagery of geographical regions
SECURITY STEPPED UP FOR COUNTRY'S BIGGEST with the launch of 'Bhuvan', a mapping application website like
HYDRO POWER STATION IN HIMACHAL Google Earth. The day marks the 90th birth anniversary of the
father of Indian space programme Vikram Sarabhai.
Security has been beefed up around India's biggest 1500 MW
Nathpa Jhakri Hydro Power Station as a precautionary measure Top space scientists were present at the launch ceremony at
to avert any terrorist attack. a workshop organised by Astronautical Society of India in New
Delhi. Hyderabad-based National Remote Sensing Agency
The central control of the Nathpa-Jhakri Power Station (NRSA), a part of Isro, had a lead role in designing and
(NJPS) is under Central Industrial Security Force (CSIF). The developing 'Bhuvan'.
station is now equipped with Close Circuit TV cameras, metal
detectors and a bomb disposal squad. NRSA director V Jayaraman told TOI that in November 2008
he picked up young scientists from Isro to work on the project.
"After the Bombay attack (26/11) we got the information that ''They were extremely enthusiastic and right from the word ‘go’
many hydro power stations are on terrorists' list. Keeping this our focus was that it should be useful to users in India,'' he said.
threat in mind, we have decided that all the sensitive places in
the 1500MW Nathpa Jhakri Hydro power project will have CCTV NRSA scientists developed the content using data provided
cameras, which are now functional. The central control of it is by Indian satellites like Resourcesat-1. 'Bhuvan', which in

20 PT’s PrepTalk – September 2009


Sanskrit means the earth, also "The Scatterometer is a very good instrument for getting
focus on rural and thematic surface wind on the sea. It again requires for sea state
applications like wasteland forecasting. And for maritime navigation, the wave height and
mapping and terrain profile. It disturbance is also important," Nair said.
contains weather details like
humidity levels. The new portal The eight-band OCM is similar to the one in Oceansat-I
shows data which has been with appropriate spectral bandwidth modifications based on the
approved by the government of experience gained. OCM, with 360 metres spatial resolution and
India. ''Sensitive information has a swath of 1,420 kms, would provide two-day receptivity, he
been kept out of the public domain,'' said Jayaraman. added.

Isro chief spokesperson S Satish said compared to Google The rocket would also carry six nano satellites from Europe
Earth, 'Bhuvan' is more ''versatile'' and provides data about as piggybacks, Nair, also Secretary in the Department of Space,
different Indian cities. ''It's more viewer-friendly,'' said Satish. said.

Space officials requesting anonymity said viewers can zoom Considering that Oceansat-2 is a continuity mission to
into 'Bhuvan' maps up to 10 metres compared to Google Earth's Oceansat-I, the same polar sun-synchronous orbit of 720 kms
200 metres and Wikemapia's 50 metres. The website can be has been retained, he said adding data from Oceansat-1 was very
accessed on http://www.bhuvan.nrsc.gov.in. widely used by fishermen.

tututu tututu

INDIA TO LAUNCH OCEANSAT-2 RAHMAN TO OFFER FREE PEACE CONCERT IN


AUSTRALIA
India would, by the second-half of September, launch
Oceansat-2 into the space, Indian Space Research Organisation Oscar winner musician A. R.
(ISRO) Chairman G Madhavan Nair said. Rahman (Slumdog Millionaire)
will deliver a free concert in
The integration of the spacecraft, Sydney (Australia) to make a
Oceansat-2, designed to identify “statement of peace” in view of
potential fishing zones, assist in sea state recent racial attacks on Indian
forecasting and coastal zone studies and students in Australia.
provide inputs for weather forecasting
and climate studies, has been completed, He reportedly said that this
Nair said. concert, to be held at Parramatta
Park on January 16, 2010 was an
Oceansat-2 is in-orbit replacement to attempt to “reunite culturally and
Oceansat-1, launched by the space spiritually” in view of the recent
agency in May 1999 to study physical and bad vibe. He hopes that it creates a “bridge of understanding and
biological aspects of oceanography. It love” and breaks down “cultural misunderstandings”. Premier
would blast off on board India's home grown workhorse Polar Nathan Rees of New South Wales has congratulated Rahman for
Satellite Launch Vehicle (PSLV) from Sriharikota on the East this offer.
coast.
Prominent Australian entertainers should respond with a
The spacecraft would carry an Ocean Colour Monitor similar gesture of a free concert in a major city of India, said
(OCM) and a Ku-band pencil beam Scatterometer - for the first Indian American leader Rajan Zed.
time, besides a Radio Occultation Sounder for Atmospheric
Studies (ROSA), developed by the Italian Space Agency - ASI. Rahman, who has reportedly recorded sales of over 300
million, was called “Mozart of Madras' by Time magazine. Pop
The Scatterometer with a ground resolution cell of 50 kms x icon Michael Jackson reportedly approached him before his
50 kms is expected to provide the wind vector range of four to 24 death to partner on a peace anthem on the lines of “We are the
metres/second with better than 20 per cent accuracy in speed World”. Rahman sees music as a “way to connect to spirituality
and 20 deg in wind direction. and embrace it”.

PT’s PrepTalk – September 2009 21


JASWANT SINGH RULES OUT WALKING AWAY FROM Madhav Kumar Nepal held discussions with Mukherjee
about developing economic ties between both countries.
POLITICS
" We h a v e a l r e a d y
Expelled Bharatiya Janata Party identified certain projects
(BJP) leader Jaswant Singh ruled out which can be taken up
walking away from active politics, immediately. We have made
saying he will continue to remain in commitments of making
public life. our contribution about
rupees 2000 crores for
He also said that he would implementing these
continue with his literary and creative projects, including Terai
pursuits while being in politics. ro u t e p ro j e c t , p o l i c e
academy, integrated check
In a meeting held immediately after the debacle of the party post, railway links,”
in the elections to the Lok Sabha in May, Singh is said to have Mukherjee said.
written a note titled Inaam (Award) and Parinaam (Result).
He added that both countries have decided to undertake
Singh said he has never associated himself with the projects on a need basis, and a joint committee consisting of
Rashtriya Swayam Sevak Sangh (RSS), nor violated any officials from both sides would be set up to monitor the project
ideological stand of the party. and also to tackle issues arriving on hand.

"I have not violated the ideology of the party; I don't know Nepal also held discussions with Union Home Minister P.
which core ideology of the party they are speaking about. I don't Chidambaram regarding the joint border monitoring and other
want to explain any conduct," he said. security- related issues.

Singh also criticised the BJP's comparison of vote and vichar tututu
(thinking).
'NUTRITION PROGRAMME FOR ADOLESCENT GIRLS'
Commenting on the banning of his controversial book
"Jinnah, India- Independence, Partition" by the Gujarat State APPROVED
Government, Singh asked "Where I made derogatory remarks
about Sardar Patel in that book? Whether they read the book The Cabinet Committee
before banning? on Economic Affairs (CCEA)
gave its approval for
A spokesperson of the Gujarat Government announced that continuation of the 'Nutrition
the state is banning the publication of the book because of Programme for Adolescent
derogatory remarks made about India's first Home Minister Girls' in 2009-2010 in 51
Sardar Vallabhbhai Patel. “Banning the book means shutting the districts as per existing
door for thought" Singh said. guidelines till the Rajiv
Gandhi Scheme for
"If any individual or organisation stops reading, writing, Empowerment of Adolescent
debating, thinking, and reflecting then it is heading towards Girls is approved.
darkness," Singh added.
The decision was taken at a meeting of the CCEA, Union
tututu Home Minister P Chidambaram said.

The CCEA also approved the releasing of funds as


MUKHERJEE REITERATES INDIA'S COMMITMENT ON central assistance (100 per cent grant basis) to States/UTs
NEPAL DEVELOPMENT out of the allocated amount of Rs.162.77 crore for the year
2009-2010.
Union Finance Minister Pranab Mukherjee assured visiting
Nepalese Prime Minister Madhav Kumar Nepal of India's With the implementation of this project, it is expected that
commitment to provide economic assistance for developmental the nutritional status of the adolescent girls in the selected
projects in Nepal. districts would improve.
22 PT’s PrepTalk – September 2009
INDIAN MISSIONS TO HAVE INDIAN COMMUNITY
WELFARE FUND
The Union Cabinet approved setting up the Indian
Community Welfare Fund (ICWF) in the Indian Missions in 17
countries to meet contingency expenditure incurred by them for
carrying out various onsite welfare activities for overseas Indian
citizens who are in distress.

The proposed ICWF is


aimed at providing several
services. They are boarding
and lodging for distressed
overseas Indian workers in
household/domestic sectors Dhoni, Gambhir and Harbhajan Singh have made the cut for
and unskilled labourers; the Cricketer of the Year award.
extending emergency
medical care to the overseas The trio has also been nominated, in the initial list, for the
Indians in need; providing Test player of the year award along with stylish V V S Laxman.
air passage to stranded overseas Indians in need; and providing
initial legal assistance to the overseas Indians in deserving cases. For the coveted One-day International player of the year,
skipper Dhoni, prolific batsman Yuvraj Singh and opener
Other objective is expenditure on incidentals and for Virender Sehwag have made it to the initial list of nominees.
airlifting the mortal remains to India or local cremation/burial of
the deceased overseas Indian in such cases where a sponsor is Indian pacer Zaheer Khan is a strong contender for the T20
unable or unwilling to do so as per the contract and the family is Performer of the Year award.
unable to meet the cost.
Indian opener Virender Sehwag and former cricketer Ravi
Overseas Indian workers duped by unscrupulous Shastri announced the names of the nominees along with the
intermediaries in the host countries, runaway house maids, Chief Executive of the International Cricket Council, Haroon
those who become victim of accidents, deserted spouses of Lorgat.
overseas Indians or undocumented overseas Indian workers in
need of emergency assistance or any other overseas Indian The sixth ICC annual awards ceremony is to be held at
citizens who are in distress would be the main beneficiaries of Johannesburg during the ICC Champions Trophy.
the Fund.
There are eight individual prizes, including the Sir Garfield
The Fund will also be utilised to meet the expenditure for Sobers Trophy for the ICC Cricketer of the Year. The winners of
airlifting the mortal remains of overseas Indian citizens to India seven individual awards would be chosen on the basis of voting
on the recommendation of the respective Heads of Missions. done by a 25-person panel from around the world made up of
former players, media personnel and an elite umpire and match
tututu referee.

SEVEN INDIAN CRICKETERS DOMINATE ICC 2009 Another 16-person group featuring former players and other
AWARDS LIST experts on the women's game would vote the nominations for
the Women's Cricketer of the Year award.
Seven Indian cricketers dominate this year's various LG ICC
Annual Awards for 2009 to be announced in Mumbai later on. The other three awards are reserved for the Test Team of the
Year, the ODI Team of the Year and the Spirit of Cricket award.
Indian skipper Mahendra Singh Dhoni, openers Gautam
Gambhir and Virender Sehwag, off-spinner Harbhajan Singh, Performances of players in the period between August 2008
middle-order bats V V S Laxman and Yuvraj Singh and fast and August 2009 would be taken into account for deciding the
bowler Zaheer Khan feature in the list. awards, according to the ICC website.

PT’s PrepTalk – September 2009 23


Current events

World
GOOGLE UNVEILS SPEEDIER SEARCH ENGINE "The new infrastructure sits "under the hood" of Google's
search engine, which means that most users won't notice a
Google Inc is working on a new test version of its search difference in search results. But web developers and power
engine, which the company claims will be faster and more searchers might notice a few differences, so we're opening up a
relevant than ever before. web developer preview to collect feedback," they said.

Google spokesperson added: "Google is always working on


new technologies to improve the quality of our search services.
We hope this new system will improve search in the areas of
speed, accuracy, and comprehensiveness."

Martin McNulty, director of search marketing specialist,


Trafficbroker, who has tried the new version, said: "Google's
caffeine is undoubtedly faster, almost twice as fast at times. It's
like a Google GTi. Caffeine may be 'under the hood' but with this
noticeable injection of speed it won't remain under the radar for
long.

As for accuracy, it's hard to say at this early stage but Google
is clearly upping its game by including real-time results and
more breaking news, as well as updates from the likes of
Facebook and Twitter.”

The company has dubbed the new search engine "caffeine". tututu

Look-wise, the new engine doesn't appear different, but its


ANGELA MERKEL STILL WORLD'S MOST POWERFUL
developers hope that the technology they have used will
noticeably index new content faster. WOMAN: FORBES

Google engineers are said to have invited web developers to German leader Angela Merkel
test the new search engine, and give their feedback. and businesswomen dominate
Forbes magazine's new list of
Matt Cutts, a principal engineer at Google, and Sitaram Iyer, powerful women, while First Lady
a staff software engineer, have posted an entry on the company's Michelle Obama and secretary of
webmaster central blog, appealing to the developers to try the state Hillary Clinton didn't break
newly improved service and send them some feedback. the top 30.

"For the last several months, a large team of Googlers has Merkel headed the list,
been working on a secret project: next-generation architecture published on August19, 2009 for
for Google's web search. It's the first step in a process that will let the fourth year running, with the
us push the envelope on size, indexing speed, accuracy, magazine highlighting her role as
comprehensiveness and other dimensions," the Telegraph leader of the huge German economy and her likely re-election in
quoted them as having written on the blog. September.

24 PT’s PrepTalk – September 2009


Reflecting the world's focus on recession and the struggle to The pageant, held in Nassau, Bahamas was hosted by Billy
keep the financial markets afloat, Merkel was followed almost Bush an actress and former Miss Rhode Island USA Claudia
exclusively by businesswomen. Jordan.

In second place came Sheila Bair, chairman of the Federal Miss Universe 2008, Dayana Mendoza, also of Venezuela,
Deposit Insurance Corp, which insures US banks. crowned her successor.

Third was Indra Nooyi, chief executive at PepsiCo, then tututu


Cynthia Carroll, the chief executive of mining giant Anglo
American, and Ho Ching, chief executive at Singapore's INTERPOL ISSUES NOTICES AGAINST ZARAR SHAH, ABU
government investment company Temasek Holdings.
AL-QAMA
Hillary Clinton slipped from 28 last year, when she was close
to winning the Democratic presidential nomination to 36, Hours after Pakistan
despite heading the powerful US State Department. rejected India's 6th dossier
on the Mumbai terror
Michelle Obama came into the list for the first time. attacks, sources told that
Although she has the ear of the US president around the clock, the Interpol has issued more
she ranked only 40. Red Corner Notices against
two more 26/11 accused.
Below her, at 42, came Britain' Queen Elizabeth II. This comes a day after they
issued RCNs against
Herewith the full top 10 in the list: Lashkar-e-Taiba founder
1. Angela Merkel, chancellor. Germany chief Hafiz Saeed and
2. Sheila Bair, chairman, Fed. Deposit Insurance Corp. US. mastermind of Mumbai
3. Indra Nooyi, chief executive, PepsiCo. US. terror strike Zaki-ur-Rehman Lakhvi.
4. Cynthia Carroll, chief executive, Anglo American. UK.
5. Ho Ching, chief executive, Temasek Holdings. Singapore Sources have said that the Interpol has issued notices to
6. Irene Rosenfeld, chief executive, Kraft Foods. US. Zarar Shah and Abu al-Qama for their involvement in the
7. Ellen Kullman, chief executive, DuPont. US. November 26, 2008 Mumbai terror attacks, which killed over 180
8. Angela Braly, chief executive, WellPoint. US. people.
9. Anne Lauvergeon, chief executive, Areva. France
10. Lynn Elsenhans, chief executive, Sunoco. US. India had earlier sent proof and requested for issuing a
similar warrant against Lashker commander Zarar Shah and
tututu Abu Al Qama, to which the Interpol has said that it was analysing
the evidence against them.
MISS VENEZUELA WINS CROWN, INDIA OUT
The Interpol has issued these notices after a Mumbai court
Indian hopes were dashed issued a non-bailable warrant against the LeT operatives for
when Miss India Ekta Choudhry their role in the November 26, 2008 attacks.
failed to make the top 15 in the
Miss Universe 2009 contest. Besides Saeed and Lakhvi, two other top leaders of LeT –
Haji Muhammad Ashraf and Zaki-ur-Bahaziq – have also been
Miss Venezuela Stefania declared as terrorists by UNSC.
Fernandez, named winner of the
2009 Miss Universe pageant. India had sought a ban on JuD after LeT was blamed for the
terrorist attacks in Mumbai.
Miss Australia, Rachael Finch
and Miss Puerto Rico, Mayra The United States had sought a ban on Lakhvi, operations
Matos Perez were the first leader of LeT, who is suspected to have planned the Mumbai
runner ups, while Miss Kosovo, attacks, Ashraf, a JuD financier, and Bahaziq, an India-born
Gona Dragusha was second Saudi national who was suspected of collecting funds for the
runner up. banned organisations in Saudi Arabia.

PT’s PrepTalk – September 2009 25


“GREEN DAM YOUTH ESCORT” SOFTWARE WAS 'NOT UN APPOINTS FIRST SPECIAL ENVOY FOR
HANDLED WELL' IN CHINA HUMANITARIAN AFFAIRS FOR PAKISTAN
A senior Chinese government official has said that the UN Secretary General Ban Ki-moon has appointed French
implementation of the "Green Dam Youth Escort" software, UN ambassador Jean-Maurice Ripert
which filters online pornographic, was "not thoughtful enough". as the first Special Envoy in charge of
humanitarian affairs for Pakistan.
The government had
demanded in May, through a Ban's spokeswoman, Michele
directive issued by the Ministry of Montas, said Ripert would assist the
Industr y and Information Pakistan Government and the
Technology (MIIT) that all international community to respond
personal computer manufacturers to the current humanitarian crisis in
should ensure that the filtering the country.
software was included with all
computers sold in China by July 1. “Ripert is to assist the government of Pakistan and the
international community in responding to the present
It was intended to offer PC owners the opportunity to screen humanitarian recovery and reconstruction needs related to the
Internet sites featuring pornography and violence, it was also country's displacement crisis,” The Dawn quoted Montas, as
supposed to protect minors from such content and need not saying.
have been used by other users.
Ripert, who will step down as UN ambassador at the end of
"The choice of words in the directive was not clear enough, this month, would be on the post for an initial period of six
which led to people's misunderstanding of why the Green Dam months. Ripert, 56, has addressed humanitarian issues
software was ordered to be available on all computers," The concerning several countries such as Myanmar, Darfur and Sri
China Daily quoted Li Yizhong, Minister of MIIT, as saying. Lanka in the Security Council in the past.

Yizhong has also said that the software would now be tututu
"voluntary", providing users an opportunity to decide if they want
to install it or not. WIKIPEDIA TO RESTRICT EDITING BIOS OF LIVING
PEOPLE
"When users buy computers, they will be provided the
software disk. It is up to the buyers to decide use it or not," said Wikipedia, the free online
Yizhong. encyclopedia to which anyone can
make contributions, will soon be
Yizhong, however, added that China would still push ahead introducing restrictions on editing
with the installation of Green Dam in schools and public information about living people.
Internet cafes. The encyclopedia, better known
for allowing users to edit and
"We will install it in computers located in schools and contribute to articles, would be
Internet cafes. We entirely respect customer’s benefit and bringing in the restrictions only for
freedom. We will definitely not make installation compulsory for bios of living people, which are at
all computers on sale," he said. high risk of being vandalised.

Yizhong further explained that MIIT wanted the software to "This (restrictions) is a two-month trial. It will probably be
be included with PCs sold in China, but it was never the in place in the next few weeks – we are doing final testing now," a
ministry's intention to demand that the software be pre- Wikipedia spokesperson said.
installed.
As per the plan, a set of experienced users of Wikipedia
He also said that the ministry wanted PC makers to include would have to approve the changes made to the bios of living
the program's setup files on new PC's hard drives or provide CD- people before a casual reader can see it on the site. These would
ROMs containing code with PC packages. be termed as "flagged revisions".

26 PT’s PrepTalk – September 2009


According to the official, the restrictions would not be Commonwealth Secretary-
applied on all living bios but only on the ones which could be General Kamalesh Sharma said
targets of vandalism. the decision was made with deep
regret and sorrow.
"Anything in a living bio that is dubious, needs a good source
and evidence of relevance, or it can be summarily removed," the "Following the militar y
spokesperson noted. overthrow of civilian government
in December 2006, sustained
Currently, Wikipedia, which has over three million articles, efforts have been made by the Commonwealth to engage the
keeps away from "abusive or libelous information" in a living bio interim government, so as to promote a return to constitutional
by locking it – whereby the user would not be able to make any democracy," Sharma said.
changes.
The failure by Fiji's military commander and interim prime
About 1,000 out of 400,000 living bios including that of US minister Voreqe "Frank" Bainimarama to commit to credible
President Barack Obama and former President George W Bush elections, meant his country had been suspended, effective
are locked at any time, the official said. immediately.

"With 'flagged revisions', a version can be flagged as 'good' The Commonwealth's deputy secretary-general, Masire
and will be visible to casual readers. Editors can still edit the live Mwambe told Radio New Zealand that Fiji would not be able to
version. participate in intergovernmental meetings at a head-of-
government or ministerial level.
"So, we have the visible result of locking the page, but now,
we will be able to improve the article as well," the spokesperson Technical assistance has been suspended, and Fiji is not
noted. allowed to participate in the Commonwealth Games.

Regarding people who would be approving the versions, the New Zealand Foreign Minister Murray McCully, who sits on
official said that in the beginning there would be 1,500 of them. the Commonwealth's ministerial action group, told Radio New
Zealand that his country's current sanctions against Fiji's
"There will be about 1,500 people who can approve versions regime would not change.
at the start, we expect to add lots more fairly quickly. Keeping the
time for approval, short, is very important," the spokesperson Earlier, Bainimarama told Radio Australia that his regime
added. would not budge from the 2014 election date he has set.

About the idea of "flagged revisions", Wikipedia in a recent Fiji is now the second country to be suspended from the
posting on the site said only a small percentage of cases would Commonwealth, after Nigeria.
require changes to be patrolled before becoming the default
view for readers.
Fiji : Facts at a Glance
"The proposal is to do so initially in the case of articles at high r Population as at 31 December 2007, stood at 837,271. Of
risk of vandalism, including high risk biographies of living this total, 475,739 are Fijians; 313,798 are Indians and
people, where false information can do the most serious harm to 47,734 are classed as Others.
an individual," according to the posting.
r Suva is the country's capital city and is one of the two
The "flagged revisions" are already in place for the German cities in Fiji. The other city, Lautoka, is also located on
language Wikipedia for more than a year now. the country's main island of Viti Levu.

tututu r Fiji lies in the heart of the Pacific Ocean and has an
Exclusive Economic Zone (EEZ) containing about 330
FIJI SUSPENDED FROM THE COMMONWEALTH islands, of which one third are inhabited.

The Commonwealth has fully suspended the South Pacific r Fiji's total land area is 18,333 square kilometers. Viti
Island of Fiji after it failed to meet a deadline to set a 2010 Levu and Vanua Levu are its two main islands. Other
election date, according to a statement released from London. main islands are Taveuni, Kadavu, Gau and Koro.

PT’s PrepTalk – September 2009 27


Current events

Business and Economy


AIRTEL'S $500M OUTSOURCING DEAL UP FOR GRABS telecom gearmaker Alcatel-Lucent to manage its landline and
broadband business.
India's largest telco Bharti
Airtel will outsource the Bharti is the minority partner in the 26:74 joint ventures, and
management and maintenance is paying the JV Company about $500 million over a five-year
of its 80,000 km-plus inter-city period for managing its landline and broadband business in
optic fibre cable network in a about 100 cities for the next five years.
deal estimated at around $500
million over a five-year period, tututu
two executives familiar with the development said.
READER'S DIGEST TO FILE FOR BANKRUPTCY
Bharti has sounded out several telecom equipment majors
about the contract that will be issued soon, said an executive The publisher of the world's largest-circulated magazine,
privy to the development. The deal is in line with the company's Reader's Digest-sold across dozens of countries including
policy of outsourcing non-core activities to save costs and India, has decided to file for
become a telecom marketing company. bankruptcy in the US, but its
operations in rest of the world
Inter-city optic fibre cables, or transmission network in would remain unaffected.
telecom industry parlance, carry voice (STD) and data
(internet) traffic across the country. In revenue terms, Bharti is The filing for bankruptcy protection by Reader's Digest
the largest carrier of voice and data traffic across the country and Association (RDA), the company said in a statement, is aimed at
many of the smaller telcos use Airtel's inter-city network for reducing its debt burden by 75 per cent and to strengthen its
carrying their STD calls. future financial position.

Bharti has made outsourcing the cornerstone of its business RDA, a global multi-brand media and marketing company
strategy, and has signed multibillion dollar contracts with based in the US, has offices in 44 countries and sells books,
network vendors such as Ericsson, Nokia and Siemens, which magazines, music, video and educational products reaching a
build, operate and manage its mobile network. customer base of 130 million in 78 countries.

It pioneered the network outsourcing model in 2004 by It publishes 94 magazines, including 50 editions of Reader's
awarding contracts to Ericsson and Siemens (which later Digest, the world's largest-circulated magazine and sells
merged with Nokia Networks) and this business model has now approximately 40 million books, music and video products
been replicated by over 100 operators globally. Bharti was also across the world each year.
the first to outsource its IT requirements when it was awarded a
10-year $750-million contract to IBM, which is now worth $2.5 The company said it has reached an in-principle agreement
billion. Another billiondollar pact exists with six BPOs, which with its lenders to reduce its debt from $2.2 billion to $550
collectively handle Bharti's customer services for a 10-year million and its 'Debt-for-Equity Restructuring Plan' is
period. supported by a majority of the lenders.

The Alcatel-Lucent-Bharti JV is the front runner to manage The restructuring agreement provides that the company's
and maintain the telco's inter-city networks, said another senior secured lenders will exchange a substantial portion of the
industry executive aware of the development. In April 2009, company's $1.6 billion in senior secured debt for equity and provide
Bharti Airtel entered into a joint venture with Franco-American foratransferofownershipofthecompanytothelendergroup.

28 PT’s PrepTalk – September 2009


ONGC EYES GAS DISTRIBUTION BUSINESS INDIA RECEIVES FIVE TIMES MORE FDI IN APRIL-JUNE
QUARTER: RBI
After oil exploration, Oil and Natural Gas
Commission (ONGC) is all set to enter the Signs of India's economic recovery appear
city gas distribution business as well. "We have to have lifted confidence levels among foreign
already signed a MoU with GAIL and we are investors, as the country received a foreign
also working for gas distribution... Hopefully investment flow that was five times more in the
in the coming years ONGC will fulfill its in April-June quarter this year.
dream" ONGC chairman and Managing
Director R.S. Sharma told mediapersons in the capital. According to data released by the Reserve
Bank of India (RBI), in the preceding quarter of January- March,
"Gas," he added, "is going to play vital role in the times to the country received three billion US dollars worth of foreign
come." Sharma was in city on the occasion of 53 years of investment, while in the April-June quarter it received 15-billion
formation of ONGC. Even in the time of global meltdown, the US dollars in foreign investment.
public sector company has performed well, he said.
The data further showed that of the total investment flows
tututu during the quarter, portfolio investments accounted for 8.270
billion dollars, while direct inflows contributed 7.016 billion
RETURNING TO 9 PCT GROWTH BIGGEST CHALLENGE: dollars.
Manmohan Singh
tututu
Returning to a high growth rate is the greatest challenge
facing India, with a weak monsoon making the task harder, but CHINA REPLACES US AS JAPAN'S LARGEST TRADING
the economy may improve by year-end, Prime Minister PARTNER
Manmohan Singh said in his Independence Day speech.
China has become Japan's biggest
India's economy is likely to grow by 6.5-7 percent in the year trading partner, replacing the
to March 2010, a top policy advisor said this week, matching the recession-hit United States, in the first
6.7 percent growth in 2008/09, and well below the growth rates of six months this year, the Japan External
9 percent or more in the previous three years. Trade Organisation (JETRO) said.
Though Japan's export to China fell 25.3
"Restoring our growth rate to 9 percent is the greatest per cent from last year to USD 46.5
challenge we face," Singh said in his annual address from the billion and imports from the country dropped 17.8 per cent to
ramparts of Delhi's historic Red Fort. USD 56.2 billion, trading with other countries, including the
US, showed larger declines, JETRO said in its report.
"We expect that there will be an improvement in the situation
by the end of this year," he said, after unfurling the Indian It is the first time exports to China surpassed those to the
tricolour to the sound of the ceremonial 21-gun salute. US, Xinhua said, citing the report. In the January-June period,
while the trade with China accounted for 20.4 per cent of total
Monsoon rains in India, Asia's third-largest economy, are 29 trade volume of Japan that with the US amounted to 13.7 per
percent below average so far, raising concerns of weaker farm cent and that with South Korea 6.1 per cent.
output and inflation. Economists say a bad monsoon could
knock as much as 2 percentage points off growth. tututu

But India has adequate stocks of foodgrains, and the


government will keep food prices in check, Singh said.
FORTIS TO BUY 10 WOCKHARDT HOSPITALS IN RS
909-CR DEAL
"All efforts will be made to control rising prices of
foodgrains, pulses and other goods of daily use," he said, In the largest acquisition in the Indian healthcare
speaking from behind a bullet-proof enclosure. businesses, Fortis Healthcare, promoted by the former owners
of drug maker Ranbaxy, has acquired some of rival Wockhardt
"The goal is 4 percent annual growth in agriculture, and I am Hospital's assets comprising eight operational and two
confident it will be achieved in the next five years," he said. greenfield projects for Rs 909 crore.

PT’s PrepTalk – September 2009 29


The deal will help Habil Khorakiwala-promoted Wockhardt Wockhardt with 10 hospitals, including seven super-specialty
Hospital repay its entire debt of Rs 500 crore. The remaining hospitals in Rajkot, Surat, Nashik, Nagpur and Hyderabad. In
amount is to be used to expand 10 facilities and set up new ones. most cases, these hospitals are run by Wockhardt, but not owned
by them.
Before this deal, the largest
healthcare acquisition was the Khorakiwala put the 10 hospitals on the block as part of a
Rs 650-crore acquisition of move to bail out the listed pharmaceutical company, Wockhardt
Escorts Heart Institute, also by Ltd, which has accumulated debt of over Rs 3,400 crore. The
Fortis Healthcare, in 2005. company, which borrowed heavily over the last few years to
expand its global footprint, recently announced the sale of an
The acquisition of the 10 hospitals by Fortis will help the overseas subsidiary and its nutrition business to rise around Rs
company, promoted by the Singh family, add 1,902 beds to its 900 crore. Khorakiwala's healthcare business came under
current capacity of 3,278 beds. pressure after Wockhardt aborted its Rs 800-crore public offer
plan in February 2008. The Khorakiwala family was earlier
A Business Transaction Agreement (BTM) was signed and trying to sell the entire chain for a valuation of Rs 1,200 to
the deal will be concluded by December, Fortis and Wockhardt Rs 1,500 crore. The suitors had included Fortis, Apollo, Manipal
Hospitals said in a joint statement. Group and some private equity players.

Fortis will finance the acquisition through a mix of debt and “This has been a fair agreement for us. We believe Fortis will
equity. It will use Rs 350 crore from an earlier initial public offer continue to deliver quality care and patient safety,” said
(IPO) and proceeds from a proposed Rs 1,000 crore rights issue Khorakiwala.
in a few months to fund the acquisition.
tututu
Talking to reporters at a press conference in Mumbai, Fortis
Healthcare Managing Director Shivinder Mohan Singh said the INDIA-NEPAL BILATERAL TRADE TO TOUCH US THREE
acquisition would help the company move closer to its current
target of reaching 6,000 beds and revenues of $1 billion (around
BILLION DOLLARS
Rs 5,000 crore based on current exchange rate) by 2012.
Commerce and Industry Minister
Anand Sharma has stressed on the need
“With the acquisition of Wockhardt Hospitals, we will revise
for increasing bilateral trade between
our target," he said.
India and Nepal to energize economic
development in the region.
Singh told Business Standard that Fortis would not retain
the identity of Wockhardt Hospitals and would rename the
He revealed this during his
facilities Fortis Hospitals.
interaction with Rajendra Mahato,
Nepal's Commerce Minister. Senior
The acquisition will include four hospitals in Bangalore, two
officials of both countries were also present.
in Mumbai and three in Kolkata. This includes two projects
under construction at Yeshwantpura at Bangalore and Anandpur
Both Ministers discussed the proposed revised Treaty of
in Kolkata, which together will have 534 beds.
Trade and Agreement of Co-operation.
The acquisition includes Rs 190 crore earmarked towards
Sharma hoped the proposed treaty would lead to a furthering
capital work-in-progress for these two projects under
of economic engagement by increasing the mutually agreed
construction.
points of trade and result in both investment and employment
generation.
The top management of Wockhardt Hospitals – including its
chief executive Vishal Bali – will also move to the Fortis fold after
the acquisition, along with 650 doctors and 1,300 other medical The present trade between India and Nepal during the year
staff. The acquisition is free of debt and all the movable and 2008-09 (April-Feb) is 1862.02 million dollars and is expected to
immovable assets and manpower of the 10 hospitals will move to touch over three billion dollars.
Fortis.
Nepal's major exports to India consist of vanaspati ghee,
The acquired hospitals accounted for 85 per cent of the yarn, textiles, GI sheet and other wires, juice, sacks, twins and
revenue for Wockhardt's chain in 2008-09. The deal leaves chemicals.

30 PT’s PrepTalk – September 2009


Nepal depends upon India for most of its essential foodgrain taken, it would not be improper on the part of banks to levy the
supplies like rice, medicines, and petroleum products, charges if they wanted.
infrastructure items such as cement and steel, transport
vehicles, spare parts, machinery equipment, chemicals, There are a little over 40,000 ATMs in India, of which nearly
electronic and agricultural equipments. 30,000 are in urban centres and metros. The remaining 10,000
are in semi-urban centres with only a sprinkling in rural areas.
India is also a major investor in Nepal. Currently, it is
estimated that there are over 400 Indian-sponsored projects. There are around 80 public sectors, private, cooperative and
Over 44 per cent of Nepal's FDI is contributed by India. foreign participating banks in the ATM network in the country.

tututu After the ATM transactions fees on using other banks' ATMs
was scrapped in April, the IBA studied the entire gamut of ATM
BANKS TO RATION FREE USE OF OTHER ATMS transactions.

Barely five months after the "We found that a majority of the ATM transactions were in
s e r v i c e c h a rg e o n u s i n g the range of average withdrawals of Rs.3, 500-4,000, and 90
automated teller machines percent of all transactions were below Rs.10,000. Hence, the
(ATMs) of other banks was intended purpose to serve the common man was achieved,"
scrapped, it will be re-introduced Unnikrishnan said.
if someone uses this facility more
than five times a month, a high- However, there was a small minority of users who withdrew
ranking banking sector official very large sums on account of high card limits given by some
said. Also the Reserve Bank of banks to privileged customers.
India has said that not more than
Rs 10,000 can be withdrawn each At the other extreme, there were some customers who
time they are used. withdrew miniscule amounts, or made other kinds of inquiries.
This created several logistics problems causing avoidable
The apex bank has sent a communication in this regard to expenditure for banks at the cost of the common user, he said.
Indian Banks' Association (IBA) and this is expected to be
implemented shortly, IBA Chief Executive K Ramakrishnan Taking into account these and related aspects, the IBA
said. submitted a proposal to RBI last month.

The Indian Banks Association (IBA), the representative “We shall give sufficient notice to the customers before
organisation of private and public sector banks in India, has implementing it, and individual banks can also inform their
proposed that instead of allowing an unlimited number of free customers about the proposal and whether or not they would
transactions at another bank's ATM, there should be a limit of up charge their customers. It will give time to affect suitable
to five free transactions a month. modifications in the ATM programmes to implement it,"
Unnikrishnan said.
"Beyond five transactions, we propose to levy a transaction
fee of Rs.20 per transaction for using another bank's ATM," said tututu
IBA deputy chief executive K Unnikrishnan.
NETAPP, TATA COMM UNVEIL NEW SERVICES
The Reserve Bank of India (RBI) has accepted the IBA
proposal, but it will be implemented only by October, As per the new initiative Tata
Unnikrishnan said. communication will use NetApp
technologies to provide cloud-based
An RBI spokesperson confirmed the development. services to monitor the infrastructure
and manage the IT requirements of
"It will be optional on the part of the banks to levy this charge the customers.
on customers. We have not made it mandatory but left it to their
(banks') discretion," Unnikrishnan said. The new technologies provided by NetApp will help Tata
Communication to provide customers easy and cost effective
He explained that since the RBI's permission has been services and also to address various challenges like

PT’s PrepTalk – September 2009 31


infrastructure requirements, opined Tata Communications ANITA DAS JOINS ONGC BOARD
Vice-President (managed service& Marketing) Alok Bardiya.
The government has appointed former bureaucrat Anita
NetAPP also announced the launch of Data ONTAP-8 a new Das to the board of state-run Oil and Natural Gas Corp
platform that will serve as foundation to address various needs of (ONGC) as an independent director. A veteran administrator
the customers. and a 1972 batch IAS officer of the Madhya Pradesh Cadre, Das
retired as Secretary, AYUSH in the Ministry of Health and
tututu Family Welfare in October last year, a company press release
said.
INDUSTRIAL OUTPUT RISES 7 PC IN JULY
With Das' nomination, the ONGC Board now has 13
“The index of industrial production for the month of July has members, including seven functional directors (including
shown a growth rate of 7 per cent and the core sectors have also chairman and managing director) and six non-executive
demonstrated an upward trend,” Commerce & Industry directors. The six non-executive directors are made up of two
Minister Anand Sharma said while unveiling the Foreign Trade part- term government nominee directors and four part-time
Policy. non- official directors.

The Index of Industrial Production (IIP) had recorded a Besides, the Managing Director of ONGC Videsh Ltd, the
growth rate of 7.8 per cent a month ago in June. It had posted a overseas subsidiary of the state-run firm is an invitee to the
growth rate of 7.1 per cent a year ago in July 2008. meetings of the board. "She (Das) has vast experience in the
field of industrial promotion as the Additional Director and
tututu Deputy Secretary Industry and later as Principal Secretary Rural
Industry at the state level," the release said.
FORD TO LAUNCH SMALL CAR IN 2010
tututu
US-based carmaker Ford said it will launch its new small car
during the first half of next year and was planning to start GOVT LOOKS TO IMPLEMENT NEW I-T LAW FROM 2011
exporting the product by the end of 2010. The company said the
sub-B segment car would be made The government unveiled the draft
to meet the statutory requirements of a brand new direct tax law, which will
of having an engine capacity of 1.2 replace the four-decade Income-Tax
litre petrol engine and 1.5 litre Act, "... to improve the efficiency and
diesel engines. equity of our tax system by eliminating
distortions in the tax structure,
"Our planned small car will be launched in India in by early introducing moderate levels of taxation
2010. We also plan to export it to markets in Asia Pacific and and expanding the tax base", said
Africa by the end of next year," Ford India President and finance minister Pranab Mukherjee.
Managing Director Michael Boneham told reporters on the
sidelines of the Annual Siam Convention. The tax code makes radical changes
in all areas of taxation: it lowers the incidence of tax on corporate
He said the company was looking at exploring the overseas and individual incomes but reintroduces wealth tax and capital
market for the new car, but did not give details about the number gains tax, albeit at lower levels. It also proposes to bring a
of units planned. uniform pattern of taxation on all long-term savings in the form
of EET– exempt at the stage of contribution, exempt during
Ford India has recently launched new advanced version of its accumulation and taxed during withdrawal.
SUV Endeavour.
Releasing the draft direct taxes code, Mr Mukherjee said if a
Boneham, meanwhile, said that the company has no plans to reasonable level of discussion happens on the code, a bill could
phase out its existing small car Fusion from India at present. be placed in the winter session of Parliament. The government
The company is also planning to start exporting diesel and petrol is hoping to implement the new code from 2011.
engines from its Chennai plant by early 2010. The company
hopes to maintain a sales figure of 30,000 units this year, similar Home minister P Chidambaram, who during his tenure as
to last year's figure. finance minister had initiated work on the Code and was

32 PT’s PrepTalk – September 2009


intensely involved with its drafting, said this was a brand new to adjust to new regime. A minimum alternate tax on assets of
Code written from scratch. Mr Chidambaram also said the companies is being proposed as it provides incentive for
underlying philosophy behind the Code is the philosophy of the efficiency at the rate of 2%. It also proposes rationalisation of tax
government, which is wedded to a well-regulated free market provisions for amalgamations and demerger so that tax remains
system. neutral when businesses reorganise.

The code proposes to exempt income up to Rs 1, 60,000 a Dividend distributed by companies would be taxed at the
year from tax. Income up to Rs 10 lakh will be taxed at 10%, 10-25 rate of 15%.
lakh at 20% and beyond Rs 25 lakh at 30%. Currently, there is no
tax till Rs 1, 60,000 of income in a year. However, there is a 10% In move that would have major impact on foreign companies
tax on income between Rs 1, 60,000 and Rs 3 lakh, 20% between or companies that have made investments in foreign countries,
Rs 3 lakh and Rs 5 lakh, and 30% beyond Rs 5 lakh. the code is proposing to treat a company as an Indian resident
even if it is partly controlled in India. Presently, a company is
But under the new tax law, an individual's gross salary would treated as an Indian resident and taxed, only if full control of that
also include perquisites such as value of rent-free company lies here. the measure is primarily aimed at preventing
accommodation, medical reimbursements and leave travel escape of any income from taxation.
encashment. Taxpayers will also not be able to claim tax benefit
on interest repayment on housing loans. However, the benefit “The thrust of the code is to improve the efficiency and
would be available if the house is rented. equity of our tax system by eliminating distortions in the tax
structure, introducing moderate levels of taxation and
All savings schemes would also come under EET, implying expanding the tax base,” Mr Mukherjee said.
that they would face tax at the time of withdrawal. However, tax
exemption would be available to the Public Provident Fund and tututu
other pension fund schemes on withdrawals of amounts
accumulated up to March 31, 2011. INDIA'S GDP RECORDS 6.1 PERCENT GROWTH IN FIRST
The Code further proposes abolition of STT. Capital gains
QUARTER
on shares and securities have been proposed to be taxed as
India managed a reasonable economic
income, added to other income after indexation with base year
growth of 6.1 percent during the first quarter
2000. “The capital gains regime is proposed to be simplified by
of the current fiscal despite the global
eliminating the distinction between long-term and short-term
financial crisis impacting manufacturing and
capital assets,” Vikas Vasal, executive director, KPMG.
services sectors.
Wealth tax provisions are proposed to be overhauled. Net
Country's Gross Domestic Product (GDP) growth rate
wealth, which would include all wealth of an individual in excess
during April-June 2009 at 6.1 percent was higher than 5.8
of Rs 50 crore, will be chargeable to wealth tax at the rate of
percent in the previous quarter.
0.25%. One of the key changes suggested by the Code includes
giving supremacy to the Indian tax law in case of a dispute
India witnessed a 7.8 percent economic expansion during
between provisions of a tax treaty and the Code, and introduction
the corresponding period of the last fiscal.
of a general anti-avoidance rule to combat tax avoidance.
According to sources, mining and electricity in industrial
This would help the tax authority's deal with cases such as
sector, and financing among services sector posted higher
Hutch-Vodafone, where if they infer that a tax treaty was being
growth of 7.9, 6.2 and 8.1 percent, respectively, in the first
abused for tax benefits, those cases are denied.
quarter of this fiscal, against 4.6, 2.7 and 6.9 percent a year ago.
Besdies, a massive overhaul is suggested for corporate
taxation besides slashing the corporate tax rate to 25%. The new Infrastructure development and community services also
rate would not have any surcharge or cess unlike present. managed to register a growth of 7.1 and 6.8 percent against 8.4
Moreover, the current profit-linked tax incentives for and 8.2 percent, in the last fiscal.
businesses will be replaced with investment-linked incentives.
However, agriculture and manufacturing industry expanded
To put it simply, a company would be able to enjoy tax benefit at a slower rate of 2.4 and 3.4 percent respectively.
only to the extent it invests. But, all the tax exemptions such as
those available to Special Economic Zones would be given time The growth of hotels, trade, transport and communication

PT’s PrepTalk – September 2009 33


was significantly lower at 8.1 percent against 13 percent in the To another query if Tata would meet Banerjee, given her
last fiscal, sources said. keenness to do something in Singur, Tata said: “Why should I
meet her? The land doesn't belong to her.”
Earlier, speaking in a function of the Federation of Indian
Chambers of Commerce and Industry (FICCI) in Bangalore, tututu
Planning Commission Deputy Chairman, Montek Singh
Ahluwalia said drought situation prevailing in the country might HYUNDAI LAUNCHES NEW SANTRO
prevent from achieving seven percent growth this year.
India's second largest car maker
"Seven percent growth rate this year is unlikely. People are
Hyundai Motors India launched a
talking about six and six-and-a-half percent growth, which we
new range of its flagship Santro car,
agree and I think is reasonable,"Ahluwalia said.
priced between Rs 2.63 and Rs 3.48
lakh (ex-showroom, Delhi).
Ahluwalia expressed confidence that "The economy should
be able to rebounce by 2010. It would be normal in the 12th
"Santro has been a phenomenal
Plan.”
success in India right from the
tututu launch till now. The new Santro has been designed with
luxurious interiors and improved exterior features to further
enhance its appeal to the customers" Hyundai Motors India
TATA WANTS COMPENSATION FOR SINGUR LAND (HMIL) Managing Director H S Lheem said in a statement.
Almost 10 months after pulling out of
The company has so far sold about 15 lakh units of Santro in
Singur, Ratan Tata has declared that he is
the country. The new model under Santro Non-Ac are priced at
ready to vacate the 997 acres of the
Rs 2.63 lakh, while Santro GL and GLS are priced at Rs 3.28 lakh
aborted Nano plant, provided he is
compensated for his investment. and Rs 3.48 lakh respectively.

“We do not wish to sit on the land. We The LPG variant of Santro GL is priced at Rs 3.49 lakh,
will give it back if the state compensates whereas the LPG variant of Santro GLS is priced at Rs 3.69 lakh.
us,” said Tata when asked about Tata
Motors' plans with the land of the aborted car project. However, tututu
he didn't comment on the quantum of compensation he was
expecting. TELECOM REGULATOR AMENDS VALUE ADDED
SERVICES RULES
In October 2009, before pulling out Tata had said they had
sunk about Rs 1,500 crore for the project. India's telecom regulator made it mandatory for operators to
twice seek confirmation from cell phone users before they
As soon as Tata's comment spread, Trinamool Congress
subscribe to value-added services (VAS).
leaders raised their claim of the land being returned to the
government and the unwilling farmers. “Let them first return
Under the amended rules, subscribers will be required to
400 acres that belong to unwilling farmers, then they can do
first confirm their subscription by pressing any cell phone key
whatever they like with the rest,” said Trinamool Parliamentary
Party chief Sudip Bandopadhyay. other than '*' (star) or '9'.

Mamata Banerjee had launched a strident campaign in The second time, the subscriber will have to reconfirm the
Singur in 2008 against acquisition of land from farmers, which VAS subscription by pressing either '*' or '9', the Telecom
eventually forced Tata Motors to vacate the site and relocate to Regulatory Authority of India (TRAI) said in a statement.
Sanand in Gujarat.
'TRAI considered the matter, and worked out a solution
Tata, who had come to attend Tata Tea's annual general which shall address the concern of the industry as well as protect
meeting, said “Bengal still remains in our heart,” and added that the interest of consumers about ease of subscription to value
his company has no intention of being an impediment to the added services and prevention of unintentional or accidental
overall development of the state. activation of value added service,' it said.

34 PT’s PrepTalk – September 2009


The amendment also mandates service providers to production, digital cinema mastering studios/shooting floors
intimate the subscriber, at least three days before the due date of film and TV equipment rentals, visual effects and image
renewal of a subscribed value added service, the due date for enhancement, film restoration BPO and other value added
renewal, the charges for renewal, and the toll-free telephone services.
number for un-subscribing such value added service.
Adlabs' television venture, BIG Synergy is among the leading
TRAI April 27 had directed operators to seek written consent players in India in the television programming industry.
from subscribers to VAS such as call ring back tone and hello
tunes to prevent accidental activation of such services. The company's operations include a 100 per cent owned
facility in Los Angeles, California - Lowry Digital - which is
However, industry associations and operators such as the universally regarded one of the premier digital restoration
Cellular Operators Association of India (COAI), Association of facilities in the world.
Unified Telecom Service Providers of India (AUSPI) and Bharat
Sanchar Nigam, told TRAI that the directive could slow the tututu
growth of VAS on account of the multi-stage activation process.

tututu INDIA HAS QUIT IRAN GAS PIPELINE DEAL: REPORT


India has exited from a gas pipeline deal it earlier planned
ADLABS FILMS TO BE RENAMED RELIANCE with Iran and Pakistan, Mehr news agency reported citing a
MEDIAWORKS Pakistani diplomat.

Adlabs Films, India's leading film and media Services "India definitely quitted the IPI
Company, and a member of the Reliance Anil Dhirubhai Ambani (India-Pakistan-Iran) gas pipeline deal,"
Group, announced that it the report said citing Pakistani
proposes to change its name to ambassador to Iran, Muhammad Bux
Reliance MediaWorks Limited, Abbasi, as saying.
subject to shareholders and
other requisite approvals.
Abbasi added that Pakistan plans to
increase its crude oil import from Iran. Iranian officials,
For the year ended March
however, said India has not yet officially declared its intention.
31, 2009, the Company delivered total revenues of Rs. 733 crores
($152 million), reflecting a Compounded Annual Growth Rate
(CAGR) of 80 per cent in the last three years. In May this year, Tehran and Islamabad signed a $7.5-billion
deal to supply gas from Iran to Pakistan. As per the deal, Iran
The original name, Adlabs Films, was reflective of the would initially supply 30 million cubic meters of gas per day to
company's initial business as a film processing laboratory. Pakistan which would be later increased to 60 million cubic
Pursuant to the Reliance ADA Group acquiring the controlling meters per day.
stake in Adlabs in the year 2005, the company has witnessed
transformational growth in the canvas and scale of its Iran, Pakistan and India had conceptualised the project in the
operations. 1990s to help boost peace and security in the region, besides
mitigating the power crisis. India stopped negotiations on the
Commenting on the development, Anil Arjun, Chief project due to tension with Pakistan, although Iran repeatedly
Executive Officer said, “The name Reliance MediaWorks encouragedNewDelhitorejointheprocess,accordingtothereport.
Limited more accurately reflects our identity as a diversified
film and media services company with a global presence. We are The pipeline would run 2,775 km when linked with the three
privileged to draw upon the international recognition of the countries. The project would have greatly benefited India, which
Reliance Anil Dhirubhai Ambani Group brand, to further do not have sufficient natural gas to meet its rapidly increasing
strengthen our leadership position in the media and domestic demand.
entertainment business. ”
Pakistan has been facing electricity shortfall of more than
The company has a presence in the film exhibition business 3,000 megawatts and plans to generate 4,600 megawatts from
in India and internationally; and has entered new segments of Iranian gas. Islamabad has been under pressure from
the film production value chain including digital post- Washington to abandon the deal.

PT’s PrepTalk – September 2009 35


GK Bytes
r Konark Beach is located on the r Digha, Bakkhali Sea Resort, Bandel, Tarakeswar,
coast of Bay of Bengal in the Kamarpukar, Gadiara, Bakreshwar, Mukutmanipur and
eastern part of Orissa. The 13
JD
Vishnupur are the places of tourist attractions in West
Century Sun temple is situated 3 Bengal.
kms from sea coast.
r Lonavala, a hill station set amongst
r Meenakshi Temple, a fine example of Dravidian the slopes of the Sahyadri
architecture, is a popular tourist attraction in Madurai. mountain range and situated 106 km
The temple situated in an area of six hectors was designed southeast of Mumbai at an altitude
in 1560 AD and was built at the reign of Thirumalai Nayak. of 625 m above sea level, was an
important Buddhist center in the
r A prized tourist destination for travelers around the world, 2nd century BC.
Kochi offers variety of attractions such as St. Francis
Church, Vasco House, Santa Cruz Basilica, and Cherai r Perched at an altitude of 2,510 m above sea level amongst
Beach. the foothills of the Himalayas, Kufri near Shimla has other
attractions such as Himalayan Nature Park and Indira
r Almora is a hill station in Uttar Pradesh houses the temple Tourist Park.
of Kaushiki Devi on the Kashyap Hill. According to the
Puranas, Kaushiki Devi appeared from the body of r Jain Temples, Nakki Lake, Toad Roak,
Goddess Parvati to kill the demons Shumbh-Nishumbh. Gau Mukh temple, Om Shanti
Bhawan and Sunset Point are
r A city of seven islands, Mumbai popular tourist attractions in Mt.
had the honor of hosting the first Abu.
I n d i a n N a t i o n a l C o n g re s s
meeting in 1885. It was also the r Ujjayanta Palace, which was built in the Indo-Saracenic
place from where the Quit India style in 1901 by Maharaja Radhakishore Manikya is the
campaign was launched. major place of tourist interest in Tripura's capital Agartala.
It is a two-storied mansion, with 28 hectares of parkland.
r Surrounded by Tibet to the east, Kinnaur in Himachal
Pradesh is home to three mountain ranges i.e. r Lansdowne is a picturesque hill station in Uttaranchal
Dhauladhar, GreatHimalayas and Zanskar. Chandika which houses the command office of the Garhwal Rifles
temple and Mathi temple are some of its famous pilgrim of the Indian Army.
centers.
r The Kerala town of Alappuzha was founded by Divan of
r The Mazar of famous Sufi saint Waris Ali Shah is situated Travanacore - Raja Keshawadasan in 1762. Major places
at Dewa, about 40 kms from Bara Banki in UP. A fair is held of interest are Kuttanad, Champakulam Church, Light
every year in the month of Kartik on the occasion of his House, Mannarasala Sree Nagaraja Temple and
annual 'Urs'. Karumadikuttan.

r The Sweet Falls also called 'Weitden,' in r The Taj Lake Palace, located in the middle of Lake
the native dialect is the most beautiful of Pichola (Udaipur). The palace was built in 1746 by
all the waterfalls in Shillong. It lies Maharana Jagat Singh II, 62nd successor to the royal
about 5 kms from the Happy Valley and is dynasty of Mewar – believed to be descendants of the Sun
about 96 m in height. God.

38 PT’s PrepTalk – September 2009


PT Panorama

Cloud Computing
A revolution in IT

I n the beginning computers were human. Then they took the


shape of metal boxes, filling entire rooms before becoming
ever smaller and more widespread. Now they are
evaporating and becoming accessible from anywhere.
additional service as and when needed from the cloud
computing vendor without having to pay for additional hardware.

another incentive to opt for cloud computing is that it is


more environmentally friendly. Reducing the number of
Computing is taking on yet another new shape. It is hardware components and replacing them with cloud
becoming more centralized again as some of the activity moves computing systems reduces energy costs for running hardware
into data centres. But more importantly, it is turning into what and cooling as well as reducing carbon dioxide emissions and
has come to be called a “cloud”, or collections of cloud. conserving energy
Computing power will become more and more disembodied and
will be consumed where and when it is needed. In a cloud computing system, there's a significant workload
shift. Local computers no longer have to do all the heavy lifting
In cloud computing, a company can store information and when it comes to running applications. The network of
applications in data centres located outside the customer's computers that make up the cloud handles them instead.
internal network, rather than on local server. The source of data Hardware and software demands
called “cloud” can be tapped remotely through a personal on the user's side decrease. The
computer, cellphone or other device. only thing the user's computer
needs to be able to run is the
CLOUD COMPUTING COULD BE A GAME CHANGER cloud computing system's
interface software, which can be
Cloud computing could be a game changer for the IT as simple as a Web browser, and
professionals because out o the total budget allocated for the IT the cloud's network takes care of the rest
in an organization, 70% of the budget goes towards maintaining
status quo and rest 30 % goes towards innovation and this is WORRY OF “CLOUDS”
where virtualization can play role. It has been assumed that
computing can save up to 50-60% in capital cost, 25% in Perhaps the biggest concerns about cloud computing are
operational cost and 33% human energy. security and privacy. The idea of handing over important data to
another company worries some people. Corporate executives
Many chief information officer would love to take their IT might hesitate to take advantage of a cloud computing system
infrastructure out to sea and perhaps drown it there. Even as because they can't keep their company's information under lock
demand for corporate computing continues to increase, IT and key.
budgets are being cut. At the same time many firms' existing
infrastructure is bursting at the seams. Privacy is another matter. If a client can log in from any
location to access data and applications, it is possible the client's
Cloud computing will be a huge opportunity for business not privacy could be compromised. Cloud computing companies
only in IT but also in R&D areas such as aerospace, nuclear, will need to find ways to protect client privacy. One way is to use
mechanical and chemical engineering. By offering computer authentication techniques such as user names and passwords.
power over the internet, the companies could free up their Another is to employ an authorization format – each user can
customers from having to pay for their own hardware and access only the data and applications relevant to his or her job.
facilities.
The rise of the cloud is more than just another platform shift
One of the advantages of cloud computing is, that both small that gets geeks excited. It will undoubtedly transform the
and medium sized businesses can instantly obtain the benefits information technology industry, but it will also profoundly
of the enormous infrastructure without having to implement change the way people work and companies operate. It will allow
and administer it directly. This also permits accessibility to digital technology to penetrate every nook and cranny of the
multiple data centers anywhere on the globe. It also means that economy and of society, creating some tricky political problems
as the need for resources increases, companies can add along the way.

PT’s PrepTalk – September 2009 39


Profile

Sunil Mittal
Chairman & Managing Director, Bharti Group

S unil Mittal can be called as originator of cellular phone rates in the country by rolling the countries first private national
revolution in India. He is the founder, Chairman and as well as international long-distance service under the brand
Managing Director of Bharti Group and runs India's name ‘IndiaOne’. In 2001, the company entered into a joint
largest GSM-based mobile phone service. Sunil Bharti Mittal's venture with Singapore Telecom International for a $650-
father was an MP. Sunil did not follow his father's footsteps. million submarine cable project, the countries first ever
After graduating from Punjab University in 1970s, he set up a undersea cable link connecting Chennai in India and Singapore.
small bicycle business in Ludhiana in partnership with his
friend. Always on the move and making an impact and excelling in
whatever he did, this clear thinking risk taker has changed the
By 1979, Sunil Mittal realized that his ambitions could not be face of the Indian ICT space. For his contributions he has been
fulfilled in Ludhiana, so he moved out to Mumbai from honoured with several awards. He was chosen as one of the top
Ludhiana. He spent a few years in Mumbai and entrepreneurs in the world for the year 2000
in 1982; Sunil Mittal started a full-fledged and amongst 'Stars of Asia', by 'Business
business selling portable generators imported Week', he received IT Man of the Year
from Japan. This gave him a chance to acquaint Award 2002 from Dataquest and CEO Of
himself with the nitty-gritty's of marketing and the Year, 2002 Award (World HRD
advertising. His business was running smoothly Congress).
but later on the government banned the import
of generators as two Indian companies were He is the member of National Council
awarded licenses to manufacture generators of Confederation of Indian Industry (CII),
locally. Federation of Indian Chambers of
C o m m e rc e & I n d u s t r y ( F I C C I ) ,
Sunil Mittal got interested in push button Chairman, Indo-US Joint Business
phones while on a trip to Taiwan, and in 1982, Council, Member, Advisory Committee
introduced the phones to India, replacing the old constituted by Ministry of IT. Mittal has to
fashioned, bulky rotary phones that were in use his credit the breaking up of the 100 year old
in the country then. Bharti Telecom Limited monopoly of state run companies to operate
(BTL) was incorporated and entered into a technical tie up with telecom services in India.
Siemens AG of Germany for manufacture of electronic push
button phones. By the early 1990s, Mittal was making fax Now he heads a successful empire focused on different areas
machines, cordless phones and other telecom gear. of business through independent Joint Venture companies with
a market capitalization of approximately $ 2 billion, employing
The turning point came in 1992 when the Indian over 5,000 people and still growing. Bharti Foundation has
government was awarding licenses for mobile phone services for funded over 50 schools in Madhya Pradesh and also donated Rs
the first time. One of the conditions for the Delhi cellular license 200 million to IIT Delhi for building a Bharti School of
was that the bidder has some experience as a telecom operator. Technology and Management.
Mittal clinched a deal with the French telecom group Vivendi.
Two years later, Sunil secured rights to serve New Delhi. In In spite of his deep involvement in work, Mittal the man is
1995, Bharti Cellular Limited (BCL) was formed to offer calm, seldom ruffled and very down to earth. He says he achieves
cellular services under the brand name AirTel. a sense of detachment and peace with regular practice of yoga.
He is thankful for a supportive family including a daughter and
Within a few years Bharti became the first telecom company twin sons, with whom understandably he doesn't get much time
to cross the 2-million mobile subscriber mark. The company is to, spend. His brothers Rakesh and Rajan are with him in the
also instrumental in bringing down the high STD/ISD, cellular business.

40 PT’s PrepTalk – September 2009


Profile

M.S. Oberoi
Father of 20th century India's hotel business

M .S. Oberoi Known as the Grand Old Man of the


Indian Hospitality business, Rai Bahadur Mohan
Singh Oberoi was the founder of the well known
Oberoi Group which today owns several luxury hotels, resorts
and a luxury cruise line. His tireless efforts helped mark India as
In 1938, he leased the Grand Hotel in Calcutta for a sum of
Rs. 7000 every month. He turned around the fortunes of the
ailing hotel with a brilliant move. World War II was on and
Calcutta was teeming with soldiers. Oberoi completely
refurbished the hotel and set up facilities to accommodate 1500
a major site for world tourism. beds, which he then offered to the British army for a sum of Rs.
10 each. Oberoi was not just rewarded by success but he was also
Mohan Singh Oberoi's life is a literal rags-to-riches story. He given the title of Rai Bahadur by the British Government for his
was born on August 15, 1898 in Bhaun, a small village in efforts.
erstwhile undivided Punjab. His father Attar Singh Oberoi was a
small time contractor in Peshawar. Unfortunately the young In 1943, he took over Associated Hotels of India Limited and
Attar Singh soon died because of a cholera gained control over hotels located in Delhi,
epidemic, leaving behind his 18 year old Lahore and Rawalpindi. He then gradually
widow Bhagwanti and small six month old son. added more hotels to the group beginning
They returned to Bhaun where he and his with establishments in Darjeeling and
mother were sheltered by his grandfather. Orissa. Under his leadership, the company
diversified restaurants and tour services.
After completing his basic education in
the village school, he matriculated from DAV Oberoi Group was one of the first
School in Rawalpindi. He then passed his companies to have women employees in the
intermediate examinations from Lahore. His Hospitality Sector. He also founded the
first job was as a supervisor in a shoe factory. O b e ro i C e n t re o f L e a r n i n g a n d
However the factory closed down and he was
Development.
left unemployed. It was at this time that he was
married to Ishran Devi from his native village.
He also had a successful political
career. He was elected to the Rajya Sabha
In 1922, he decided to apply for a
twice, in 1962 and 1972. He became an
government job in Simla. He did not get the
elected member of the Lok Sabha in 1968.
appointment but with typical panache, he
MS Oberoi has won several honors over his
approached Mr. Grove, the manager of the luxurious Hotel Cecil
lifetime. He was chosen as an "Elite Winner of 1978" by
and was hired as a clerk. Mr. Grove was succeeded by Mr. Clarke,
who promoted the young man to the post of cashier and Newsweek Magazine and honoured by the Government of India
stenographer. Pandit Motilal Nehru, who was a frequent guest at with the Padma Bhushan in 2001.
the hotel was impressed by his dedication and hard work and
rewarded the young Oberoi with the princely sum of Rs.100. By Today, The Oberoi Group owns or manages 37 luxury and
thistime,theOberoishadtwochildrencalledRajraniandTilakRaj. first class international hotels in seven countries.

In 1924, when Mr. Clarke decided to go into business for He passed away at the age of 103 on May 3, 2002.
himself, he invited the industrious Oberoi to join him. The first
business venture was a catering contract for the elite Delhi Club. M.S. Oberoi was a quick learner and shouldered many
The next project was leasing an old Simla hotel called the additional responsibilities along with the job of desk clerk. M. S.
Carlton. Renamed to Clarke's Hotel, it was soon a raging Oberoi's diligence prompted Mr. Clarke to request Mohan
success. After five years, with the retirement of Mr. Clarke, Singh Oberoi to assist him when he acquired Clarkes Hotel. At
Oberoi took over the business. It was the first of the hotels that the Clarkes Hotel, M.S. Oberoi gained first hand experience in
Oberoi eventually acquired. all aspects of hotel operations.

PT’s PrepTalk – September 2009 41


opinion
“We will remove all our troops from Iraq by the “Once I was portrayed as Hanuman of the party,
end of 2011. For America, the Iraq war will end.” now I am treated as Ravana.”
– Barack Obama, said in his address to the – Jaswant Singh, after his expulsion from
Veterans of Foreign Wars Convention in BJP
Phoenix, Arizona

“I know that some Americans fear that greater


partnership with India will mean lost jobs or
“(L.K.) Advani created an ideological confusion falling wages in the United States. But if we
by lauding Jinnah. Jaswant Singh has added to manage our relationship well, both sides can
it.” benefit from India's economic progress.”
– Bal Thackeray, said in an editorial in Sena – Hillary Clinton, Secretary of State, said in
mouthpiece 'Saamana’ response to a question which was texted to
her during her trip to India last month

“There is credible information of ongoing


plans of terrorist groups in Pakistan to carry out “If required, the government would not hesitate
fresh attacks.” to undertake open market intervention and
– Manmohan Singh, said while addressing release of wheat and rice under the open market
the Conference of CM in New Delhi sale scheme.”
– Sharad Pawar, Food and Agriculture
Minister said that 246 districts in 10 states
“I was asked bizarre questions by the airport have been declared drought hit
officials. It wasn't a drama. I don't want
publicity. But, I feel routine procedure was not
followed there. We should not be treated on the
basis of our colour or nationality.” “I lost the (semifinal) bout. It would have been
– Shahrukh Khan, Bollywood superstar nice to have won and ensured that India's first
addressed mediapersons after his detention at Olympic medal in boxing was gold.”
Newark International Airport in the US – Vijender Singh, Indian boxer

“It is a universal rule that the young generation “India has not responded to Pakistan's request
must replace the old generation.” for intelligence-sharing on New Delhi's
– Mohan Bhagwat, RSS chief told television concerns about terrorist attacks being planned
channel 'Times Now' when asked about the from Pakistani soil.”
aging top leadership of the BJP – Shah Mahmood Qureshi, Foreign
Minister Pakistan

“The recovery has started. Sustaining it will “Hindi is necessary for students to integrate
require delicate rebalancing acts, both within with the rest of the country.”
and across countries.” Kapil Sibal, Union HRD minister said while
– Olivier Blanchard, chief economist, said addressing the Council of Boards of Secondary
in an IMF's article Education, New Delhi

42 PT’s PrepTalk – September 2009


Guestroom

‘Situation’ Writer
Lt. Col P. Deogirikar (Retd.)

We can hear the songs through out the 24 hours and at any place, especially after the mobiles have infiltrated our
lives. And these songs could be anything, old or new, classical or jazz, Bhajans or ghazals. While these songs may
have been written for some reel-situations, we could invent some interesting real-situations given in these songs. If
only a part of this song is taken, we could imagine a dozen interesting situations. Shall we try this “reverse
engineering”?

1. A youngster is at the ground floor of a multistorey building The same song can also be useful to the traffic police man in
considering whether to take the lift or use the stairs when a song Indore. He could help the two-wheeler riders beat the traffic jam
comes alive - “Jeena nahin tere bina”. He realizes that his by indicating towards a by-lane.
girlfriend is not with him and coolly takes the lift for the
second floor! 7. When a young man is appearing in an important
examination and knows nothing about the subject, he would be
2. If an overweight youth was taking the stairs as per doctor’s desperate to copy from other student who might be scared of
advice, the song ‘Aaj phir jeene ti tammanna hai, aaj phir allowing for the fear of getting caught. The background should
marne ka irada hai’ could well be played in the background. have this song blaring, “Tujhme rab dikhta hai, yaara main
kya karun?”
3. Another person, typical one with his mouth full of ‘paan’ is
in dire need to spit it out. But he is taking the stairs and finds the 8. If a boy comes back after ‘seeing a girl’ and is humming
God’s photos pasted at the appropriate corners. (Wonder how ‘Tere judwa naina’, it means that so far he was shown only
the God would react if he knows - which he must as he is the those girls who did not have twin (identical) eyes! and are not
‘know-all’- that one of his primary duties is to ensure no spitting in “looking London talking Tokyo!”
the multistoried buildings!) The man takes a good aim and
‘shoots’ between two such photos. Fachhak! And the radio Let us invent some more situations not involving youth.
starts, “Dekh tere insaan ki haalat kya ho gayi bhagwan,
kitna badal gaya insaan..”! Unfortunately, a building 9. If a mali (gardener) is working in the garden while the
occupant, inspired by Lage Raho Munnabhai, may not be owner is reading the newspaper and the song in the background
expected to be cleaning the stains which would remain for long. is “Bagon mein bahar hai, kaliyon pe nikhar hai”, the mali
(By the way, we are so smart that we would spit on the walls if the might confront the owner, “Well, that was the performance
notice says, ‘Deewar par thukna mana hai’. appraisal, now where is the increment?

4. One dutiful brother is late for Rakhi and is desperate to 10. If an old man like me gets excited on his 25th wedding
catch the train from Bhopal while taking a bus from Indore to anniversary and dances with the song, “Dard-e-disco”, next
Bhopal. It appears that he might be late reaching Bhopal railway day the doctor may diagnose the pain to be “Dard-e-khisko’,
station. Which song should he listen to then? “Tu bas de de for some bone (although well padded by the meat around) would
mera saath”! The same song would also be useful when his have shifted.
girlfriend is in the bus and he is not sure that he would be able to
board it through a huge rush. 11. While a salesperson is in the process of displaying the socks
on the pavement, “Mauza hi mauza’ in the background may
5. While on Rakhi, another song “Bhaiyya mere Rakhi ke not be a bad idea.
bandhan ko nibhana” would be apt when Elesh Parujanwala
is walking around. 12. When a tournament is going on and the foreign team is
contemplating leaving for threat of disease or terrorism (as it
6. If a boy is in his hostel room and radio sings “nikal bhi ja, happened in World Badminton tournament at Hyderabad
patli gali se nikal bhi ja”, it could be a hint that the house recently), the loudspeaker in stadium must play, “Pardesi,
owner is downstairs gunning for his room rent. pardesi jana nahin..”

PT’s PrepTalk – September 2009 43


Brand icon

ROLEX

I n 1905 Hans Wilsdorf and his brother-in-law Alfred Davis


founded "Wilsdorf and Davis" in London. Their main
business at the time was importing Hermann Aegler's Swiss
movements to England and placing them in quality watch cases
made by Dennison and others. These early wrist watches were
Rolex also came up with certain trend setting
innovations like:

r
r
The first waterproof watch case
The Datejust (1945), the first wristwatch with an
sold to jewellers, who then put their own names on the dial. The automatically changing date on the dial
earliest watches from Wilsdorf and Davis were usually r The first watch to show two time zones at once
hallmarked "W&D" inside the case back. r The first watchmaker to earn chronometer certification
for a wristwatch
In 1908 Wilsdorf registered the trademark "Rolex" and
opened an office in La Chaux-de-Fonds, Switzerland. The Significant events in Rolex history
company name "Rolex" was registered on 15 November 1915.
The word was made up, but its r Rolex is the official time keeper of Wimbledon and The
origin was obscure. Wilsdorf was Australian Open tennis grand slams.
said to want his watch brand's
name to be easily pronounceable r Sherpa Tenzing Norgay and other members of the
in any language. He also thought Hillary expedition wore Rolex Oysters in 1953 at
that the name “Rolex" was altitude 8,848 m on Mount Everest while there are
onomatopoeic, sounding like a attestations and speculation that Sir Edmund Hillary
watch being wound. It was also either carried a Smiths Deluxe or a Rolex to the
short enough to fit on the face of a summit, or both.
watch.
Since its birth at the turn of the century, this powerful brand
In 1914 Kew Observatory has become an icon of sophistication and a possession revered by
awarded a Rolex watch a Class “A” the world's high achievers (a point nicely illustrated by Sir
precision certificate, a distinction Edmund Hilary, who took his to the summit of Mount Everest).
which was normally awarded But today's desire for digital consumerism and the mass-market
exclusively to marine chronometers. medium of the world wide web has meant a host of new
challenges for luxury goods, and many brands are struggling to
In 1919 Wilsdorf moved the company to Geneva, Switzerland retain exclusivity when transferring their products to the net.
where it was established as the Rolex Watch Company. Its name
was later changed to Montres Rolex, SA and finally Rolex, SA. As a part of its brand development strategy, Rolex does not
The company moved out of the United Kingdom because taxes allow the sale of its watches in the virtual world. There are
and export duties on the silver and gold used for the watch cases several instances of counterfeiting goods and in no way Rolex
were driving costs too high. wants to lose its reputation of making world class, reliable,
quality watches. Rolex fears that if the watches are sold in second
Upon the death of his wife in 1944, Wilsdorf established the life, there may be duplications and this might in turn lead to
Hans Wildorf Foundation in which he left all of his Rolex shares, customer confusion and dissatisfaction.
making sure that some of the company's income goes for charity.
The company is still owned by a private trust and shares are not It believes that the watches will speak for it. Rolex has
traded on any stock exchange. carefully and strategically lived up to its brand image. Rolex is in
fact the only company to have shelled out a wide range of watches
During the period when Rolex introduced wristwatches, the as compared to any other company. The uniqueness manifested
pocket watches were more popular. However, it was the in its watches sets it apart from the rest of the crowd. In order to
farsightedness of the founders that the pocket watches would be develop its brand, it manufactures goods after extensive
eventually replaced by the wristwatches. research.

44 PT’s PrepTalk – September 2009


Logo Quiz
Identify the brands/companies/mascots from the following logos

1. Credit and debit 2. Indian public-sector 3. Global telecom. corp. 4. Banking Services
cards brands petroleum co. solutions & services

5. Private sector 6. One of the earliest 7. News service 8. Widely accepted


Banking Services banks in South India broadcasters payment cards brands

9. Automobile 10. Banking Services 11. Networking 12.


mfg. company Computing Tech.

13. Mobile services 14. Largest gas 15. Pharma and 16. Cable and
transmission co. healthcare products satellite TV

17. India's leading 18. Leaders in 19. Diverse fields 20. Pharma &
industrial conglomerate Agriculture goods healthcare products

Answer key on page 64


PT’s PrepTalk – September 2009 45
Business Trivia
r Aditya Birla Nuvo was incorporated r ABB India, a p o w e r
in 1956 as Indian Rayon by M Vaidya equipment and automation
which was later acquired by the Birla technology company, was
Group. Indian Rayon transferred the incorporated in 1949 as
cement business to Grasim and Hindustan Electric Co
acquired Madura Garments & IT companies PSI Data Ltd (HEC). It entered into a collaboration with Brown
Systems & TransWorks in the 1990s. In 2006, Indian Boveri Co Ltd, Switzerland in 1962 and was renamed
Rayon merged its businesses, Indo Gulf Fertilizers and Hindustan Brown Boveri Ltd in 1965. A merger with Asea
Birla Global Finance, with itself and changed its name to Electric Ltd in 1989 led to the formation of Asea Brown
Aditya Birla Nuvo. Its businesses include: garments, VFY, Boveri Ltd.
caustic soda ash, allied chemicals, carbon black and textiles
and telecom (IdeaCellular) r Abbott India Ltd (Abbott) was incorporated in 1944 as
Boots and renamed Knoll Pharmaceuticals in 1995 and
r Sao Paulo, Brazil has more private helicopters than any Abbott in 2001. Major brands include Brufen, Digene,
place else in the world. Cremaffin and Norvir.

r “The future is now” is a slogan used by Microsoft. r Agro Tech Foods is an ITC Group company Its brands
Philosopher JidduKrishnamurti coined this phrase. include Sundrop, Sudham mustard oil, Crystal and Rath
Vanaspati, Healthy World Atta and Dried Green Peas,
r Two of Henry Ford's last possessions were a test tube and Act II popcorn and JustFries snacks.
a theatre seat. The test tube is said to preserve the last
breath of Thomas Alva Edison, and the theatre seat was the r The Oldest Joint Stock Bank of the Country,
one on which Abraham Lincoln was sitting when he was Allahabad Bank was founded on April 24,
shot. 1865 by a group of Europeans at Allahabad.
The Bank became a part of P & O Banking
r Federal Express actually saved Corporation's Group in 1920.
millions of dollars by just
shortening its name to Fed Ex and r In international post the words Par Avion indicate
saving on the paint cost. In fact, transportation by Aeroplane.
that was one of the reasons for
shortening the name. r In 1979, UK businessman Mohamedal-
Fayed bought the Ritz Hotel in the Place
r John Wanamaker created the first department store in Vendôme in Paris.
1876 in US and was the first to issue moneyback
guarantees for retail products. He also pioneered the use r Colonel Mustard is a suspect in the
of newspaper ads to advertise his retail goods. game of Cluedo who holds a military
rank.
r Cosmopolitan' magazine is called the “Women's bible”.
r A cruciverbalist likes to solve CrosswordPuzzles.
r One of the largest Indian contractor in the private sector for
offshore drilling, Aban Loyd was promoted by M A r On a standard British Monopoly board, Mayfair is the
Abraham in 1986 as a tie-up with India Offshore Inc, US. most expensive property to buy.

46 PT’s PrepTalk – September 2009


r US mathematician Edward Kasner introduced the word r The numeral “9” appearing in all Bata pricing is linked to
Googol for the number made up of one followed by a the company's founder, Thomas Bata. He was a ninth
hundred zeroes. generationshoemaker, determined to become the “King
of Shoemakers”.
r Superbowl was first held in 1967 when it was won by the
Green Bay Packers. r Mahindra & Mahindra launched
Scorpio in Europe and South Africa
r The stethoscope was invented in under the name MahindraGoa.
France in 1816 by René-Théophile-
Hyacinthe Laennec. Rappaport r “If people find the No. 2 so good, they
and Sprague designed a new will believe the No. 1 to be even better!” said Ardeshir
stethoscope in the 1940s which Godrej. He launched No. 2 soap in 1919 and No. 1 soap in
became the standard and was made 1920.
by Hewlett-Packard.
r The name Bon Marche, regarded as one of the first true
r HP's medical products division was spun off as Agilent departmentalstores, means 'Goodbuy' in French.
Technologies.
r The logo of HSBC Bank signifies that
r Yahoo! is an acronym for 'Yet another Hierarchal the doors of the Hong Kong and
OfficiousOracle'. Shanghai Banking Corporation are
openfor business.
r PhilipB Crosby wrote 'Qualityis Free'.
r Netaji Subhash Chandra Bose was the president of a
r Instead of reacting defensively, The Dutch giant, Philips tradeunion for eight years of TataSteel.
Electronics chose to cooperate with a community of
hackers who were interested in tinkering with the software r The bar code, invented by Joe Woodland in 1949 is a
of Pronto–an intelligent remote control's embedded technology that revolutionised the retail industry.
software.
r Before it became a part of Hindustan Lever, Brooke Bond
r Polyester was called “Chamak” and Reliance Industries India acquired Karnataka ScootersLtd in the early 1980s.
founder Dhirubhai Ambani was called “Chamatkar” in
the textile market of Mumbai. r Tactical Mobile Robots have performed tens of
thousands of missions in Iraq and Afghanistan and are
r Aer Rianta International, a subsidiary of Dublin Airport credited with saving scores of soldiers' lives. Pacbots made
Authority, wasworld's first duty-free airport store or by the iRobot company, USA. Over 700 of them are now
facility. deployed worldwide.

r Sales feedback from men's wear showrooms of an exclusive r VAIO is a sub-brand for many of Sony's
brand for men showed that there was a great demand for computer products. It was originally an
trousers in sizes 26-28, from women. This led the company acronym for Video Audio Integrated
to introduce a range of garments for women too. Allen Operation, but since 2008 amended to
Solly, owned by Madura Garments, launched the brand's Vi s u a l A u d i o I n t e l l i g e n c e
women's wear range. Organizer to celebrate the brand's
10th year anniversary.
r The world-famous candy bar
Snickers, which is more than 70 r The branding was created by Timothy Hanley to
years old, was named after a horse distinguish items that encompassed the use of consumer
owned by the Marsfamily. audio and video, as well as being conventional computing
products.
r Colonel Sanders, the mascot of US fried chicken
restaurant chain KFC. The image covers 87,500 sq ft in the r The VAIO logo also represents the integration of analog
Nevadadesert. KFC claims that it is the first brand visible and digital technology. The 'VA' represents an analog
from space. wave and the 'IO' represents digitalbinary code.

PT’s PrepTalk – September 2009 47


General knowledge
1. In the UK sporting circles, which form of racing is 8. Which 1974 Charlton Heston film saw an earthquake of
informally referred to as 'The Dogs'? unimaginable magnitude hit Los Angeles?
(1) Dog cart Racing (1) Richter Hit
(2) Cart Racing (2) Earthquake
(3) Car Racing (3) The Hit
(4) Greyhound Racing (4) Magnihit

2. Which Oscar-winning British actor and writer played 9. Who was vice-president of the US from 1989 to 1993?
Kilwillie in the TV series 'Monarch of the Glen'? (1) Richard Nixon
(1) Julian Fellowes (2) John Adams
(2) Robert Pattinson (3) Jimmy Carter
(3) Robert Tillman (4) Dan Quayle
(4) Niel Patrick Harrison
10. In radio terminology, what do the initials 'DAB' stand for?
3. Edele & Keavy Leach were members of which 1990's Irish (1) Digital Air Broadcasting
girl group? (2) Detected Audio Broadcasting
(1) Spiced Gals (3) Digital Audio Broadcasting
(2) B*Witched (4) Detected Air Broadcasting
(3) Bitches and Witches
(4) None of the above 11. Which instrument is traditionally played by the leader of an
orchestra?
4. The overthrow in 1989 of the communist regime in (1) Violin (2) Harp
Czechoslovakia is known as what revolution? (3) Mouth Organ (4) Nothing
(1) Velvet
(2) Operation underground 12. On 14th November 1973, which member of the Royal
(3) Velvet Underground Family was married at Westminster Abbey?
(4) Velvet cushion (1) Princess Anne
(2) Prince Williams
5. Which bird, a member of the Columbidae, is used as a (3) Princess Diana
symbol of peace? (4) Prince David
(1) Pigeon (2) Dodo
(3) Dove (4) Ostrich 13. Tipperary, Meath & Kilkenny are countries in which
European country?
6. In which BBC TV spy drama is Adam Carter played by (1) Germany
Rupert Penry-Jones? (2) Republic of Ireland
(1) Spooks (3) Netherlands
(2) Monarch of the Glen (4) Poland
(3) Dalziel and Pasco
(4) The chase 14. Which playwright was killed in a fight in a tavern in
Deptford in 1593?
7. Which British Rock star duetted with Tina Turner on the (1) Jenise McLevin
1990 UK chart hit, 'It Takes Two'? (2) Josh Bernard
(1) Elvis Priestly (2) Rod Stewart (3) Christopher Marlowe
(3) Michelangelo (4) None of the above (4) None of the above
48 PT’s PrepTalk – September 2009
15. Which shellfish are used in the French dish 'moules 24. Who wrote Tarzan of the Apes in 1912?
marinieres'? (1) Richard Attenborough
(1) Oyster Shells (2) Ben Kingsley
(2) Mussels (3) Edgar Rice Burroughs
(3) Mushells (4) Simon Napes
(4) None of the above
25. Which Japanese martial art translates into English as
16. What is the common name for the large bird that is "empty hand"?
sometimes called the South American Ostrich? (1) Taekwondo (2) Judo
(1) Rhea (2) Dodo (3) Karate (4) Hyuki
(3) Khea (4) Emu
26. Who played the Toymaker in the 1968 film 'Chitty Chitty
17. By what name is a five-sided polygon more commonly Bang Bang'?
known? (1) Roger Moore
(1) Pentax (2) Pentahex (2) Bill Riley
(3) Pentacon (4) Pentagon (3) Benny Hill
(4) Henry Thurman
18. In October 2006, the historic cricketing trophy known as
'The Ashes' left for a three-month tour of which country? 27. Who wrote the novel Chitty Chitty Bang Bang : The
(1) England Magical Car?
(2) Australia (1) David Husselman
(3) India (2) Neigella Atherton
(4) West Indies (3) John Caren
(4) Ian Fleming (he was more famous for James Bond)
19. Which German composer's work includes nine
symphonies, thirty-two piano sonatas and one opera? 28. What is the chemical symbol for Copper?
(1) Michelangelo (1) Cu (2) Co
(2) Banatas (3) Cp (4) Cr
(3) Hublot
(4) Ludwig Van Beethoven 29. In what year was Margaret Thatcher elected as Britain's
first female Prime Minister?
20. Jerome K Jerome's book 'Three Men in a Boat' is an account (1) 1979
of a boating holiday on which English river? (2) 1969
(1) River Thames (3) 1976
(2) River Nile (4) 1981
(3) River Ganges
(4) Pacific ocean 30. Which of these countries does NOT border the Russian
Federation?
21. Who played JR Ewing in the TV series Dallas? (1) Georgia
(1) Rud Kurtson (2) Armenia
(2) Larry Hagman (3) Azerbaijan
(3) Jamie Kings (4) Latvia
(4) Robert Deniers
31. What number is represented by the Roman numeral XLV?
22. How many wives of Henry VIII were beheaded? (1) 45 (2) 25
(1) 2 (2) 3 (3) 35 (4) 50
(3) 5 (4) 8
32. In which field was Frenchman Eugene Ferdinand Victor
23. Where were the 1992 Summer Olympic Games held? Delacroix famous in the 19th Century?
(1) Athens, Greece (1) Poetry
(2) Barcelona, Spain (2) Drama
(3) Morocco (3) Painting
(4) None of the above (4) Architecture

PT’s PrepTalk – September 2009 49


33. In physics, what letter is used to represent to fundamental 41. In which battle was Richard III slained?
constant that is equal to "9.80665 metres per second (1) Waterloo
squared"? (2) Qubus Raid
(1) E (3) Bosworth Field
(2) Mc (4) Trafalgar
(3) G (constant is Earth's gravity pull, the acceleration of
free fall) 42. Which is the longest river in Great Britain?
(4) None of the above (1) The Thames
(2) Mary
34. What is the capital of the US State of Florida? (3) Abbey
(1) Tallahassee (4) The Severn
(2) Freehut
(3) Florence 43. What is the patella bone better known as?
(1) The shin
(4) St. Luis
(2) The kneecap
(3) The Rib
35. What sport is played in the USA by the Minnesota (4) None of the above
Timberwolves, Cleveland Cavaliers and Houston Rockets?
(1) Baseball 44. Which book features the characters Passepartout, Mr. Fix
(2) Ice hockey and Aouda?
(3) Basketball (1) Around The World In Eighty Days
(4) Soccer (2) French on Tour
(3) France: In & Out
36. What is the orbital period of Halley's Comet? (4) Francois
(1) 65 years
(2) 86 years 45. In the song, Solomon Grundy was born on Monday, what
(3) 71 years happened to him on Thursday?
(4) 76 years (1) Died
(2) Took Leave
37. In which battle on August 1st 1798 did Nelson destroy the (3) Nothing
French fleet, 7 years before doing it again at the Battle of (4) Took ill
Trafalgar?
(1) Battle of the Nile 46. Who was the leader of the USSR during World War Two?
(2) Battle of the Nieafra (1) Karzov Mitzy
(3) Battle of the Troy (2) Gorshov
(4) Battle of the Kruacus (3) Joseph Stalin
(4) James Stalin
38. Which football club plays its home games at Brunton Park?
(1) Brunton United 47. What is the fourth planet from the Sun?
(2) Carlisle United (1) Earth (2) Mercury
(3) Vextor (3) Mars (4) Venus
(4) Ajax
48. Which game's name comes from the French for "little
wheel"?
39. Which US state's flag has a Union Jack in the canton?
(1) Roulette
(1) Illinois
(2) Dart
(2) Ohio
(3) Fortune
(3) Hawaii (4) Kido
(4) Florida
49. Which gas is the most abundant in air, making up over
40. From which plant do we get Vanilla? 77%?
(1) Vanillium (1) Oxygen
(2) Vanum (2) Nitrogen
(3) Orchid (3) Carbon Di Oxide
(4) Eggplant (4) Hydrogen

50 PT’s PrepTalk – September 2009


50. Which of William Shakespeares' plays has the most lines? 59. Who released the album "All That You Can't Leave Behind"
(1) Macbeth in 2000?
(2) The Twelfth night (1) Backstreet Boys (2) Blue
(3) Hamlet (3) Boy zone (4) U2
(4) None of the above
60. Who won the Best Actor Oscar for his performance as
51. What country has an area of approximately 7.7 million Judah Ben Hur in the 1959 epic Ben-Hur?
square kilometres, a population of 18 million and her flag (1) Charlton Heston
comprises the colours red, white and blue? (2) Ben Rolcer
(1) Australia (3) Daniel Wiseley
(2) America (4) Jacob Dumas
(3) England
(4) None of the above 61. What country owns the Canary Islands?
(1) Seychelles
52. Who wrote the classic thriller 'The Thirty-Nine Steps'? (2) Spain
(1) David Grather (3) Mauritius
(2) John Buchan (4) Hawaii
(3) Harren silvio
(4) Rubious Ciso 62. What river flows through the Grand Canyon in the USA?
(1) Nevada
53. Which religion features 'The Four Noble Truths'? (2) Afficus
(3) Colorado
(1) Hinduism
(4) Oakley
(2) Islam
(3) Buddhism
63. Which English football club won the League and FA Cup
(4) Jewish
"double" in 1986?
(1) Manchester
54. Who designed the spectacular Church of the Holy Family
(2) Chelsea
and the Casa Mila block of flats, both in Barcelona?
(3) Arsenal
(1) Fabio Guardo
(4) Liverpool
(2) Caesar Cavalli
(3) Antonio Gaudi 64. What is the lightest of all the elements and has the atomic
(4) None of the above number 1?
(1) Oxygen
55. What type of animal is the oriole? (2) Sodium
(1) Reptile (3) Hydrogen
(2) Amphibian (4) Helium
(3) Bird
(4) None of the above 65. Before the French Revolution in 1789, who is reported to
have said "Let them eat cake"?
56. In which US state are the cities of Las Vegas and Reno? (1) Mark Antoinette
(1) Texas (2) Florida (2) Mary Antoinette
(3) Nevada (4) Ohio (3) Marie Antoinette
(4) Marquee Antoinette
57. Who defeated the Persian king Darius III in the Battle of
Issus in 333 BC? 66. Which 'note' does an orchestra tune to?
(1) Porous (1) A (2) A*
(2) Alexander the Great (3) E (4) E*
(3) Napoleon Bonaparte
(4) None of the above 67. What is the capital city of Morocco?
(1) Sicily
58. What is the chemical symbol for sodium? (2) Krijack
(1) Na (2) Sd (3) Rabat
(3) S (4) So (4) Turad

PT’s PrepTalk – September 2009 51


68. In the world of weaponry, what do the initials ICBM stand 76. Which mountain range runs along the west coast of South
for? America for over 4,000 miles?
(1) Inter-camp Blast Missile (1) Alps
(2) Inter-coast Ballistic Missile (2) Bures
(3) Inter-continental Ballistic Missile (3) Andes
(4) None of the above (4) None of the above

69. In the medical world what do the initials ENT stand for? 77. What is the SI unit for time?
(1) Eyes Nose and Tongue (1) Minutes
(2) Ear Nose and Throat (2) Hours
(3) Eyes Neck and Throat (3) Second
(4) None of the above
(4) Days
70. Which country has an area of approximately 3.85 million
78. For which two films did Steven Spielberg win the Best
square miles, a population of 29 million and her flag is
Director Oscar?
coloured red and white?
(1) ET and Transformers
(1) Russia
(2) Japan (2) AI and Star Wars
(3) Canada (3) Indiana Jones and The Temple of Dome
(4) Korea (4) Schindler's List and Saving Private Ryan

71. Which author and comedian has released the novels "Time 79. Which male athlete won 4 gold medals at the 1984 Los
for Bed" and "Whatever Love Means"? Angeles Olympics for the 100 metres, 200 metres, 400
(1) David Baddiel metre relay and the long jump?
(2) Benny Hill (1) Usain Bolt
(3) Ben Arthur (2) Mark Lewis
(4) Russell Peters (3) Carl Lewis
(4) None of the above
72. Which Commonwealth country had the Prime Ministers
Bill McMahon, Edward Whitlam and John Frasier in the 80. Who wrote the novel Black Beauty, first published in 1877?
1970s? (1) Richard Goweth
(1) Britain (2) Hannah Bourdain
(2) Austria (3) Billy Reidner
(3) Australia (4) Anna Sewell
(4) None of the above
81. Which metallic element has the chemical symbol Pb and
73. What colour light is displayed from the starboard side of a atomic number 82?
ship? (1) Plutonium
(1) Green (2) Red
(2) Lead
(3) White (4) Orange
(3) Platinum
(4) Palladium
74. Who was the leader of the USSR when Yuri Gagarin
became the first man to go into space?
(1) Yvek Krusvek 82. The Gobi desert covers territory in which two countries?
(2) Nikita Krushchev (1) China and Tibet
(3) Niytak Khomonv (2) Tibet and Mongolia
(4) Gistov Richards (3) China and Mongolia
(4) None of the above
75. Who played Edmund Blackadder in the BBC comedy series
Blackadder? 83. Which American city is known as 'the city of brotherly love'?
(1) Ben kingsley (1) New York
(2) Benny Hill (2) Houston
(3) Rowan Atkinson (3) Philadelphia
(4) Bob Carney (4) Florence

52 PT’s PrepTalk – September 2009


84. Who preceded Margaret Thatcher as Prime Minister of the 92. Which Welsh city is called Abertawe in Welsh?
United Kingdom? (1) Swesity
(1) William Carter (2) Welshity
(2) James Rupert (3) Swansea
(3) James Callaghan (4) None of the above
(4) David Blair
93. What is the longest river in Asia?
85. Odin, a one-eyed bearded old man was the most powerful (1) Yangtze
god in which mythology? (2) Ganges
(1) Persian (3) Narmada
(2) Norse (4) Sindhu
(3) Chinese
(4) Roman 94. With which instrument is American B B King chiefly
associated?
86. What country did ex-Liverpool goalkeeper Bruce (1) Violin (2) Guitar
Grobbelaar represent? (3) Flute (4) Harp
(1) Germany
(2) Holland 95. Who won the 1992 FA Cup Final?
(3) Denmark (1) Manchester united
(4) Zimbabwe (2) Chelsea
(3) Liverpool
87. What flag does a ship traditionally fly to indicate it is about (4) Arsenal
to set sail?
(1) The go green 96. In Greek mythology, who killed Achilles?
(2) The black jack (1) Tussads (2) Paris
(3) The Blue Peter (3) Cathilus (4) Famicus
(4) The white cross
97. Who plays Mike Baldwin in the soap opera Coronation
88. What is the capital city of Iran? Street?
(1) Tehran (1) John Travolta
(2) Baghdad (2) Mickey James
(3) Istanbul (3) Johnny Briggs
(4) None of the above (4) Tony Calra

89. If diamond is for the 60th and gold for the 50th, what is used 98. Which racecourse in the Republic of Ireland is also a
to celebrate the 20th wedding anniversary? palindrome?
(1) China (1) Cavan
(2) Platinum (2) Navan
(3) Silver (3) Raven
(4) Bronze (4) None of the above

90. Which English scientist discovered Sodium, Potassium, 99. What town was the birthplace of William Shakespeare?
Barium, Calcium and Magnesium? (1) Paris
(1) Madam Marie Curie (2) Vatican city
(2) Stephen Hawkins (3) Stratford-upon-Avon
(3) Sir Humphrey Davy (4) Port Louis
(4) Dennis Cuman
100. Which fruit is also known as the 'Love Apple'?
91. What term is used for the male voice higher than bass and (1) Tomato (2) Pear
lower than tenor? (3) Plum (4) Pomegranate
(1) Vociferous
(2) Basstuner 101. What is the name of the Israeli Secret Service?
(3) Baritone (1) KRG (2) MI5
(4) None of the above (3) Mossad (4) Mustaid

PT’s PrepTalk – September 2009 53


102. Adam West was most famous for playing which comic book 111. If you suffered from 'arachnophobia', what would you have
character on television? an irrational fear of?
(1) He-man (1) Spiders
(2) Superman (2) Lizards
(3) Batman (3) Snakes
(4) Ninja Turtles (4) Heights

103. What sport is contested between the United States and 112. What city does Sugar Loaf Mountain overlook?
Great Britain for the Walker Cup? (1) Jakarta
(1) Polo (2) Brisk walking (2) Rio de Janeiro
(3) Golf (4) Snooker (3) Sao Paolo
(4) Santa Maria
104. How many squares are on a chessboard?
(1) 32 (2) 72 113. What was the name of the time machine Doctor Who
(3) 64 (4) 16 travelled in?
(1) TIMA
105. How was Eric Hugh Blair, born in 1903, better known? (2) AHEADO
(1) Mark Twain (3) RAPTURED
(2) Charles Dickens (4) TARDIS
(3) George Orwell
(4) None of the above 114. How many players in total are on the field at the start of a
regular game of Gaelic Football?
106. Who was the American president when Neil Armstrong first (1) 30 (2) 22
walked on the moon? (3) 24 (4) 32
(1) Dan Quayle
(2) John Adams 115. What is Britain's largest freshwater fish?
(3) Richard Nixon
(1) The Spook
(4) Jimmy Carter
(2) The Reno
(3) The Pike
107. Which cast member of the TV comedy show Friends also
(4) The Quilo
starred in the movie Scream?
(1) David Schwimmer
116. What is the chemical symbol for Sodium?
(2) Courteney Cox
(1) So (2) Sm
(3) Mathew Perry
(3) Na (4) Nu
(4) Lisa kudrow

108. In North America, what sport is played by the New Jersey 117. How many stars are on the flag of the United States?
Devils and the Florida Panthers? (1) 50 (2) 51
(1) Basketball (3) 53 (4) 55
(2) Ice Hockey
(3) Air Hockey 118. Which actor has played Ken Barlow on Coronation Street
(4) Baseball for over 40 years?
(1) Rick Afferson
109. What was the former name of the country Mynamar? (2) William Roach
(1) Vietnam (3) Buick Quanterly
(2) Indonesia (4) Rodrick Fumbley
(3) Burma
(4) None of the above 119. What country is completely landlocked within the Republic
of South Africa?
110. Which author wrote the "Foundation" series of science (1) Kumbwa
fiction novels? (2) Quavaba
(1) Isaac Asimov (2) Roger Nikson (3) Lesotho
(3) Marie Foster (4) Isaac Kyuzikov (4) None of the above

54 PT’s PrepTalk – September 2009


120. What is the first part of JRR Tolkien's "The Lord of the 128. Anubis is the god of funerals who transports the souls of
Rings" trilogy called? the dead to the other world in which ancient civilization?
(1) The Fellowship of the Ring (1) Greek
(2) The Resurrection (2) Roman
(3) The Reinstated Rings (3) Egyptian
(4) None of the above (4) None

121. What European capital city stands on the River Tiber? 129. What is the chemical symbol for Potassium?
(1) Berlin (1) K (2) P
(2) Athens (3) Ps (4) Pm
(3) Rome
(4) Brussels 130. Which renaissance artist painted Primavera and The Birth
of Venus?
122. Who was disqualified and stripped of his gold medal for the (1) Michelangelo
100 metres at the 1988 Olympic Games? (2) Leonardo D Vinci
(1) Ben Johnson (3) Dumas
(2) John Mason (4) Botticelli
(3) David Gehlet
(4) Gustov Chvosky 131. The island of Bahrain is connected by a causeway to which
country?
123. What American author wrote the classics "East of Eden", (1) Qatar (2) Saudi Arabia
"Of Mice and Men" and "The Grapes of Wrath"? (3) Somalia (4) Jordan
(1) Isaac Asimov
(2) Roger Nikson 132. Which country's flag (bizzarly) has a garden hoe and a
(3) John Steinbeck Kalashnikov rifle inside a star?
(4) Marie Foster (1) Nigeria
(2) Namibia
124. In which US State is Kilauea, the world's most active (3) Mozambique
volcano? (4) Somalia
(1) Alabama
(2) Arkansas 133. Which Italian author published Pinocchio in 1880?
(3) Hawaii (1) Raymond Cavalli
(4) Utah (2) Valentino Vetra
(3) Carlo Collodi
125. In distance, which planet is sixth farthest from the Sun? (4) None of the above
(1) Saturn
(2) Earth 134. Which scientist published the ground breaking book
(3) Jupiter "Principia Mathematica" in the 17th Century?
(4) Neptune (1) Thomas Jefferson
(2) Isaac Newton
126. What is the well known Japanese word for "empty (3) Robert Hooke
orchestra"? (4) Blaise Pascal
(1) Genre
(2) Karaoke 135. Who was the last Tsar of Russia, who was murdered along
(3) Kliedo with all his family by Bolshevik guards?
(4) Lido (1) Nicholas II (2) Nicholas III
(3) Nicholas IV (4) Rasputin
127. What is the official name of the bottom 9 miles (15 KM) of
the Earth's atmosphere? 136. What is the more common name for ascorbic acid?
(1) Stratosphere (1) Vitamin D
(2) Biosphere (2) Vitamin K
(3) Troposphere (3) Vitamin C
(4) Lithosphere (4) Vitamin B

PT’s PrepTalk – September 2009 55


137. In computing, what does RAM stand for? 146. Which country's flag consists of just the colour green?
(1) Read Access Memory (1) Pakistan
(2) Random Accessible Memory (2) Bangladesh
(3) Random Access Memory (3) Libya
(4) Right Access Memory (4) Iran

138. By area, what is the largest country in Africa? 147. Who played Vivien in the BBC comedy The Young Ones?
(1) Namibia (2) Sudan (1) Benny Hill
(3) Zambia (4) Nicaragua (2) George Hopkins
(3) Adrian Edmondson
139. What American band has released the albums "Out of (4) Henry Sopers
Time" and "Automatic for the People"?
(1) Linkin Park 148. In which European country is Transylvania?
(2) ACDC (1) Czechoslovakia
(3) R.E.M. (2) Germany
(4) Metallica (3) Romania
(4) None of the above
140. Which country won the football World Cup in 1934 and
1938? 149. Who wrote the novel Jurassic Park, which the Spielberg film
(1) England (2) Italy was based on?
(3) Argentina (4) Mexico (1) Michael Crichton
(2) Mikhail shvosky
141. How many minutes of play are in an American football
(3) Emily Dickinson
match?
(4) None of the above
(1) 60 (2) 45
(3) 90 (4) 120
150. How many 'dimes' are in a US dollar?
(1) 10 (2) 9
142. Which company produces the computer operating system
(3) 11 (4) 16
Windows?
(1) Microsoft
151. What is the chemical symbol for Gold?
(2) Apple
(3) IBM (1) Au (2) Gu
(4) Non of the above (3) Go (4) Av

143. Which novel, first published in 1719, is based on the real- 152. Which television character has the car registration plate
life exploits of Alexander Selkirk? FAB1?
(1) Alexander (1) Peter Parker
(2) Elixir (2) Batman
(3) Robinson Crusoe (3) Lady Penelope
(4) None of the above (4) None of the above

144. What is the deepest lake in the world, with depths over 153. Which king was killed in the Battle of Bosworth Field in
1,600 metres? 1485?
(1) Lake Superior (1) Richard III
(2) Lake Victoria (2) Richard IV
(3) Lake Tanganyika (3) Richard V
(4) Lake Baikal (Baykal) (4) Richard VI

145. Complete this advertising slogan "Murraymints, 154. Who composed the ballets "The Nutcracker" and "Swan
Murraymints..."? Lake"?
(1) Murraymints (1) Peter Kuisko
(2) Mints (2) Peter Teraky
(3) Too good to hurry mints (3) Peter Tchaikovsky
(4) Free Mints (4) Peter Swarosky

56 PT’s PrepTalk – September 2009


Brand Trivia

Ashok Leyland
r The genesis of Ashok Leyland lies in a young nation's quest for self-reliance. On Pandit Jawaharlal Nehru's persuasion,
RaghunandanSaran entered automotive manufacture and set up Ashok Motors in Madras for the assembly of Austin cars,
in 1948. Later, in 1955, with equity participation from British Leyland, Ashok Leyland commenced the manufacture of
commercial vehicles.

r A turning point in Ashok Leyland's history came in 1987 when Land Rover Leyland
International Holdings Ltd (LRLIH), the holding company of Ashok Leyland was taken
over by the transnational, multi-billion dollar conglomerate, the Hinduja Group, along with
IVECO, the European trucking giant.
r Since July 2006, the Hinduja Group has become a 100% share holder of LRLIH. Ashok
Leyland is the largest supplier of logistics vehicles to the Indian Army supplying a host of
modern special purpose vehicles such as the Stallion 4x4s. 'Engineeringyour tomorrows'
has been Ashok Leyland's punchline.

r Ashok is the name of the company's founder Saran's son. When India reached out to Pakistan at Wagah in February 1999, it was
an Ashok Leyland bus that took people across the border. Ashok Leyland buses have also been the choice for the
Srinagar–Muzzafarabad and the Poonch-Rawalkot cross-overs.

Answers to General knowledge

1. Ans.(4) 23. Ans.(2) 45. Ans.(4) 67. Ans.(3) 89. Ans.(1) 111. Ans.(1) 133. Ans.(3)
2. Ans.(1) 24. Ans.(3) 46. Ans.(3) 68. Ans.(3) 90. Ans.(3) 112. Ans.(2) 134. Ans.(2)
3. Ans.(2) 25. Ans.(3) 47. Ans.(3) 69. Ans.(2) 91. Ans.(3) 113. Ans.(4) 135. Ans.(1)
4. Ans.(3) 26. Ans.(3) 48. Ans.(1) 70. Ans.(3) 92. Ans.(3) 114. Ans.(1) 136. Ans.(3)
5. Ans.(3) 27. Ans.(4) 49. Ans.(2) 71. Ans.(1) 93. Ans.(1) 115. Ans.(3) 137. Ans.(3)
6. Ans.(1) 28. Ans.(1) 50. Ans.(3) 72. Ans.(3) 94. Ans.(2) 116. Ans.(3) 138. Ans.(2)
7. Ans.(2) 29. Ans.(1) 51. Ans.(1) 73. Ans.(1) 95. Ans.(3) 117. Ans.(1) 139. Ans.(3)
8. Ans.(2) 30. Ans.(2) 52. Ans.(2) 74. Ans.(2) 96. Ans.(2) 118. Ans.(2) 140. Ans.(2)
9. Ans.(4) 31. Ans.(1) 53. Ans.(3) 75. Ans.(3) 97. Ans.(3) 119. Ans.(3) 141. Ans.(1)
10. Ans.(3) 32. Ans.(3) 54. Ans.(3) 76. Ans.(3) 98. Ans.(2) 120. Ans.(1) 142. Ans.(1)
11. Ans.(1) 33. Ans.(3) 55. Ans.(3) 77. Ans.(3) 99. Ans.(3) 121. Ans.(3) 143. Ans.(3)
12. Ans.(1) 34. Ans.(1) 56. Ans.(3) 78. Ans.(4) 100. Ans.(1) 122. Ans.(1) 144. Ans.(4)
13. Ans.(2) 35. Ans.(3) 57. Ans.(2) 79. Ans.(3) 101. Ans.(3) 123. Ans.(3) 145. Ans.(3)
14. Ans.(3) 36. Ans.(4) 58. Ans.(1) 80. Ans.(4) 102. Ans.(3) 124. Ans.(3) 146. Ans.(3)
15. Ans.(2) 37. Ans.(1) 59. Ans.(4) 81. Ans.(2) 103. Ans.(3) 125. Ans.(1) 147. Ans.(3)
16. Ans.(1) 38. Ans.(2) 60. Ans.(1) 82. Ans.(3) 104. Ans.(3) 126. Ans.(2) 148. Ans.(3)
17. Ans.(4) 39. Ans.(3) 61. Ans.(2) 83. Ans.(3) 105. Ans.(3) 127. Ans.(3) 149. Ans.(1)
18. Ans.(2) 40. Ans.(3) 62. Ans.(3) 84. Ans.(3) 106. Ans.(3) 128. Ans.(3) 150. Ans.(1)
19. Ans.(4) 41. Ans.(3) 63. Ans.(4) 85. Ans.(2) 107. Ans.(2) 129. Ans.(1) 151. Ans.(1)
20. Ans.(1) 42. Ans.(4) 64. Ans.(3) 86. Ans.(4) 108. Ans.(2) 130. Ans.(4) 152. Ans.(3)
21. Ans.(2) 43. Ans.(2) 65. Ans.(3) 87. Ans.(3) 109. Ans.(3) 131. Ans.(2) 153. Ans.(1)
22. Ans.(1) 44. Ans.(1) 66. Ans.(1) 88. Ans.(1) 110. Ans.(1) 132. Ans.(3) 154. Ans.(3)

PT’s PrepTalk – September 2009 57


News in brief

India
r The Union Cabinet decided to set up a Group of Ministers r Even as Prime Minister
to assess the impact of the high price of Aviation Turbine Manmohan Singh has
Fuel (ATF) on the aviation industry and suggest steps to promised that “nobody will go
reduce the burden on airlines. The decision to set up the hungry” in the country, the
GoM came within days of the chiefs of major private Centre is asking the States to
airlines as well as Air India apprising Mr. Patel of the put a ceiling on the number of
financial crisis caused by the high ATF prices, steep airport Below Poverty Line (BPL)
charges and low volume of passengers at a time of global beneficiaries under the
downturn. Targeted Public Distribution
System for the purpose of the
r The United States Commission on International National Food Security Bill that
Religious Freedom (USCIRF) placed India on its is in the making. The Union
“Watch List” for 2009 because it found the Central government wants to limit the “targeted” BPL
government had failed to take effective measures to ensure beneficiaries to 5.91 crore as per 2009 population
the rights of religious minorities in several States. estimates, instead of the present 6.52 crore. The majority
of the States have disputed the Centre's poverty estimates
r India and the Association of South and demanded “food for all” under the Bill.
East Asian Nations signed a Free
Trade Agreement, which took nearly r Almost at the fag end of the kharif sowing season, the
six years to negotiate. The FTA, Centre has announced an increase of Rs. 100 a quintal in
relating only to goods, was signed by the minimum support price (MSP) of paddy and a hike
Union Commerce and Industry of Rs. 300 a quintal for arhar (tur) dal over last year. The
Minister Anand Sharma and his MSP for moong dal was raised by Rs. 240 and for sesame by
ASEAN counterparts at a ceremony in Rs.100 a quintal. The move is aimed at encouraging
Bangkok after the two sides held annual consultations. farmers to sell their produce to official procurement
agencies for the central pool.
r The rate of inflation dipped further to minus 1.74 per
cent for the week ended August 1 from (-)1.58 per cent r The Interpol issued Red Corner Notices (RCN) against
despite soaring prices of essential commodities such as Lashkar-e-Taiba (LeT) founder chief, Hafiz
cereals, pulses, sugar, fruits and vegetables. Muhammad Saeed, and mastermind of the Mumbai
terror attacks, Zaki-ur-
r The truce between the former Rehman Lakhvi. The
Rajasthan Chief Minister, warrants were issued by
Vasundhara Raje, and the BJP a Mumbai court on June
leadership remained shortlived as 23 against Saeed and 22
the party suspended two of her others, including
most vocal supporters among the Lakhvi and suspected
MLAs charging them with military official Colonel
“indiscipline.” The orders R. Saadat Ullah, for
suspending Rajendra Singh allegedly hatching a
Rathore, former Minister and party Whip in the Assembly, conspiracy to carry out
and Gyandev Ahuja were issued by the State unit. Both have the attacks in Mumbai
been asked to reply in seven days. last November.

58 PT’s PrepTalk – September 2009


r The former Rajasthan Chief Minister Vasundhara Raje r The Union Cabinet approved a proposal to set up seven
is likely to maintain her profile as Leader of the Opposition. Indian Institutes of Management in Tamil Nadu,
Ms. Raje, who returned after reportedly tendering her Haryana, Rajasthan, Jammu and Kashmir, Jharkhand,
resignation from the post on the directive of the Bharatiya Chhattisgarh and Uttarakhand. Four of the IIMs – in Tamil
Janata Party leadership, presided over a joint meeting of Nadu, Haryana, Jharkhand, and Chhattisgarh – would be
Opposition MLAs, being held on the eve of the session to set up this year and become operational from the next
decide on floor strategies. academic year. The others would be set up next year and
become operational in 2011.
r India called on China to increase its efforts to clamp down
on trade in tiger parts even as Beijing mulls lifting a trade r After wrapping up a comprehensive review of the security
ban, a move conservationists say will deal a fatal blow to cover provided to about 435 VIPs, the Home Ministry has
India's wild tigers. Much of the poaching in India is driven decided to withdraw the X-category security given to 30
by demand from China, which has the world's biggest persons. With this, the list of the protectees under the
market for tiger parts. category has shrunk to 20. It is learnt that the list includes
names of mostly politicians and some former judges.
r Over tele-link from New Delhi, Prime Minister
Manmohan Singh inaugurated the new campus of r Hundreds of farmers from Dadri in Ghaziabad district of
Indian Institute of Space Science and Technology Uttar Pradesh, whose land was
(IIST), an institution moulding the next generation of acquired for building a gas-based
space scientists for the country, at Valiamala, near Reliance power project, staged a
Thiruvanthpuram. dharna in Lucknow to protest
against what they alleged was the
r The judges of the Supreme “forcible acquisition of fertile
Court, including Chief Justice of land.” They have demanded that
India K.G. Balakrishnan, will the land be returned to them and an alternative site in
make public the statements of Dadri allotted for the mega power project. About 2,500
assets they declared at the time of acres had been acquired for the power project.
their appointment to the Supreme
Court and subsequent additions, if r Telecommunications Secretary Siddharth Behura
any. This decision was taken at a Full has asked the chiefs of the country's top mobile operators
Court meeting, presided over by to adopt a policy of self-regulation in sourcing telecoms
Justice Balakrishnan. equipment. Operators including Bharti Airtel, Reliance
Communications, Vodafone and Idea have been asked to
r The UPA government raised reservation for women at come out with guidelines on sourcing equipment but a
all tiers of the panchayat raj system from 33 to at least 50 decision on whether to ban Chinese equipment was
per cent. The Cabinet, presided over by Prime Minister pending.
Manmohan Singh, also cleared the proposal to amend
Article 243(D) of the Constitution for the purpose. The r India started field trials to buy 126 fighter jets, moving
Ministry of Panchayati Raj has been directed to draft a bill forward on a $10.4 billion deal to modernise the air force.
for making the amendment. Boeing's F/A-18 Super Hornet, France's Dassault Rafale,
Lockheed Martin Corp's F-16,
r Ending all confusion over the pricing of Russia's MiG-35, Sweden's Saab
spectrum for 3G services, the empowered JAS-39 Gripen and the
Group of Ministers (e-GoM) finalised the Eurofighter Typhoon, produced by
reserve price for auction of radio waves for next a consortium of European
generation mobile services at Rs. 3,500 crore. companies, are in the race for the
The e-GoM, headed by Finance Minister contract, one of the biggest in play.
Pranab Mukherjee, decided to allow a maximum of five 3G
operators per telecom circle, including a government- r Even after the start of this year's academic session, the
owned company (BSNL or MTNL). It fixed the base price Basic Education department is still to distribute around
for pan-India WiMAX spectrum for wireless Internet at Rs. 94,000 Urdu workbooks to the students –45,000 Class I
1,750 crore, and decided to sell only three slots initially. and 49,000 Class II students.

PT’s PrepTalk – September 2009 59


r India and Nepal signed a r Delhi's Indira Gandhi International Airport is now
trade treaty to allow equipped with thermal scanners to screen passengers
Nepalese goods duty-free arriving from swine flu-hit countries. Four thermal
access to India and agreed to scanners have been installed at the airport. The scanner
bolster security along their helps in detecting passengers with high fever, which is a
border to thwart militant symptom of the flu.
attacks. India will allow
Nepal to use the southern r Olympic heroes boxer Vijender
port of Vishakhapatnam for foreign trade, Indian officials Singh and wrestler Sushil
said. Trade between the two neighbours stood at $1.9 Kumar, along with four-time
billion and they hope it will more than double in a few years world champion woman pugilist
time. India is Nepal's sole fuel supplier and is the M C Mary Kom, were conferred
Himalayan nation's main foreign investor. the prestigeous Rajiv Gandhi
Khel R atna award in a
r The Cabinet cleared a proposal on providing full interest glittering ceremony . For the first time in the history of
subsidy on education loans from scheduled banks to national sports awards, three sportspersons were
economically backward students. "Any student whose individually bestowed India''s highest sporting honour,
parents' income is below Rs 4.5 lakh a year is entitled to which comes with an enhanced cash prize of Rs 7.5 lakh
the subsidy, provided he is doing a professional course from and a newly-designed statuette.
a recognised institute," Union Human Resources
Development Minister Kapil Sibal said. The schemes r The government is understood to have decided to infuse
will apply from the current academic year 2009-10. additional equity in Air India and give a soft loan to
Students can avail of the interest subsidy scheme once – counter the financial crunch, as a high-level Committee
either for the first undergraduate degree course or the asked the Civil Aviation Ministry to move a note on the
postgraduate degrees/diplomas. issue for consideration of the Union Cabinet. There were
indications that its equity base, which now stands at only Rs
r Haryana will be the first state to use satellite maps for 145 crore, would be enhanced by at least Rs 2,500 crore.
urban planning, under a MoU signed by the Survey of
India, a mapping and surveying organisation, and the r A newspaper which has become the voice of the lower class
Haryana Space Applications Centre. women in Bundelkhand has been chosen for the
prestigious King Sejong Literacy prize instituted by
r Seven legislators of the Jharkhand assembly lost their UNESCO. Run by all-women staff, 'Khabar Lahariya'
membership under the anti-defection law. This is perhaps was launched in May 2002. The eight-page Bundeli
the first time after the introduction of the Tenth Schedule fortnightly has a circulation of almost 25,000, with a
that so many MLAs have been disqualified in a single day in readership that spreads across 400 villages in the
such a small assembly. The Jharkhand assembly has 81 Chitrakoot and Banda districts of the state.
legislators.
r Laishram Sarita Devi, a seven times
r IT czar Nandan Nilekani gold medallist in various international
intends to deliver the first unique women's boxing tourneys has been
identity number within the next bestowed with the Arjuna Award, India's
18 months and cover half the prime honour for sportspersons. Sarita
country's billion plus population Devi (24) hails from Thoubal in Manipur.
in four years. The Prime
Minister's Council on Unique r Jaswant Singh, expelled leader of India's main opposition
Identification (UID) Authority BJP approached the Supreme Court over a ban on his
approved Nilekani's strategy paper controversial book in the BJP-ruled Gujarat. Gujarat
at its first meeting. government said it would reply after a notice is served to it.

r Prime Minister Manmohan Singh brought back noted r Petroleum and Natural Gas Minister Murli Deora
economist, C. Rangarajan as head of his five-member described the activation of the Mangala Processing
Economic Advisory Council, for the second time. Terminal ( MPT) as a historic achievement, as the crude
Rangarajan, 77, resigned as Rajya Sabha MP, and took over oil production from this block will meet about 20 percent of
as chairman of the important council. the nation's current crude oil production.
60 PT’s PrepTalk – September 2009
News in brief

World
r Leaders of the United States, Mexico and Canada gathered r A 400 billion euro plan to power Europe with Sahara
to present a united front to try to limit the spread of the sunlight is gaining momentum, even as critics see high
H1N1 swine flu , but there is less unity on simmering risks in a large corporate project using young technology in
trade issues. North African countries with weak rule of law. Desertec, as
the initiative is called, would be the world's most ambitious
r U.S. Secretary of State Hillary Clinton solar power project. Fields of mirrors in the desert would
arrived inAngola in a bid to bolster gather solar rays to boil water, turning turbines to electrify a
opportunities for U.S. business in the new carbon-free network linking Europe, the Middle East
major oil producer . Clinton said the and North Africa.
United States wanted to strengthen
relations with Angola, from which the r Saudi Arabia has stopped United
United States imports 7 percent of its oil Arab Emirates citizens entering the
and which rivals Nigeria as Africa's kingdom using identification cards it
biggest oil producer. says show Saudi territory as part of the
UAE. Riyadh has suspended the
r Billions of dollars have been invested by major oil mechanism of using national IDs for
companies Chevron and Exxon Mobil in recent years to moving between the two countries," the
increase production in Angola – both firms pump over half Interior Ministry's Passport Authority
of the country's daily oil production. informed at the Foreign Ministry's website.

r Iran ready for nuclear talks with West. U.S. President r Japan gave Kenya 587millionshilling($7.69million)
a
BarackObama has given Iran until September to take up grant to buy food in response to an appeal by the east
a six-power offer of talks on trade benefits if it shelves food shortage
African country's president who declared a
sensitive nuclear enrichment, or face harsher sanctions. a national disaster.

r Iranian President Mahmoud r African leaders will ask rich nations for $67 billion per
Ahmadinejad has submitted a list of year to mitigate the impact of global warming on the
his proposed new cabinet to parliament, world's poorest continent, according to a draft resolution.
nominating current Commerce Ten leaders are holding talks at African Union (AU)
Minister Massoud Mirkazemi as the headquarters in the Ethiopian capital to try to agree a
new oilminister. common stance ahead of a U.N. summit on climate change
in Copenhagen in December.
r North, south Sudan agrees on implementing peacedeal.
Representatives from Sudan's north and south have agreed r President Obama has condemned
to implement several disputed or neglected elements of a Aung Sun Suu
the sentence given to
2005 peace deal that ended more than two decades of Kyi by the ruling military junta and
fighting. joined the international community in
calling for her immediate release.
r Don Hewitt CBS News'
, the creator of ground-breaking Burmese democracy icon Suu Kyi will
"60 Minutes" program and one of the most influential be detained for a further 18 months
behind-the-scenes figures in television journalism, died at after she was found guilty of violating
the age of 86. the terms of her house arrest.

PT’s PrepTalk – September 2009 61


r World Bank President Robert r An expensive satellite launched by South Korea's first
Zoellick p l e d g e d t o b o o s t space rocket is thought to have burned up in the Earth's
development aid to Rwanda to help atmosphere after missing its designated orbit. The nation
rebuild the country ripped apart by had invested more than 500billion won (£245.3m) into the
genocide. The tiny landlocked east failed project. The extra weight prevented the rocket from
African state is reviving its economy achieving enough thrust to place the satellite in orbit. Its
by spending on tourism. speed fell to 6.2km per second instead of an optimum 8kps.

r Iran's Supreme Leader appointed r South African President Jacob Zuma travels to
Ayatollah Sadeq Larijani as the new head of the Zimbabwe in a bid to ease tensions
country's judiciary. Larijani, a brother of parliament within the strained unity government,
speaker Ali Larijani and a member of Iran's hardline though analysts held out little hope for
constitutional watchdog the Guardian Council, replaces a breakthrough. During his two-day
Ayatollah Mahmoud Hashemi-Shahroudi whose 10-year visit, Zuma met with long-ruling
term has ended. President Robert Mugabe and his new
partner in government, Prime
r Afghanistan went to the polls to elect a president for just MinisterMorganTsvangirai .
the second time in its war-torn history with a sweeping
security clampdown in force to prevent threatened r Taiwan's President Ma Ying-jeou and his government
Taliban attack. had agreed to allow Tibet's spiritual leader the Dalai
Lama to visit the typhoon-hit island. They have decided to
r One of the best known figures in American politics - (agree to) the Dalai Lama's visit to pray for the souls of the
SenatorEdwardKennedy- has died aged 77 after a long deceased and seek blessings for the survivors of the
battle with cancer. After following his brothers into politics, typhoon.
he eventually became the most senior representative of
Massachusetts . He backed Barack Obama to win the 2008 r Israeli Prime Minister Benjamin Netanyahu was set
election and was working closely with the President to help to discuss peace efforts with German leaders and made an
him push through his liberal healthcare reforms. emotional visit to the place where Nazi leaders plotted the
"final solution". The hawkish Israeli leader was to meet
r Russia is worried about North Korean missile and German Chancellor Angela Merkel for talks focused on the
nuclear tests and has deployed sophisticated air defences latest US-backed drive to revive the Middle East peace talks
in its Far East region to protect against any potential test as well as attempts to halt Iran's disputed nuclear
mishap, informed Russia's top general. They have an S-400 programme.
division there," informed General Nikolai Makarov, chief of
staff of the Russian armed forces, confirming that Russia r Iran's hardline President MahmoudAhmadinejad called
had deployed its most advanced anti-missile defence for the first time for the punishment of opposition leaders
system near the border with North Korea. over the street unrest unleashed by his disputed re-election
in June. Ahmadinejad also renewed the Islamic republic's
r Pakistani helicopter gunships stepped up attacks on allegations that Britain sought to overthrow the regime. It is
Taliban positions in the South Waziristan region
, a day the first time Ahmadinejad has made such a call against his
after militants confirmed that their leader was dead and political opponents, who have charged his re-election was
announced his successor. fraudulent.

r Venezuelan President Hugo r Icelands' parliament has voted in favour of a bill to pay
Chavez has warned he will break off back Britain the billions of pounds lost in the collapse of
diplomatic ties with Bogota over a online bank Icesave. The Icelandic
controversial US deal to use £3bn
government will pay more than
Colombian military bases, which he to the UK and Netherlands in a
termed a "declaration of war." Chavez move that may pave the way for
was speaking just three days before a further international aid to repair the
regional summit of South American island's hard-hit economy. The bill
leaders in Argentina called to discuss Bogota's agreement authorises repayment to the two
to allow US troops to operate at seven of its bases. countries over 15 years.

62 PT’s PrepTalk – September 2009


r Afghanistan's bitter presidential r Hardline pro-Israel groups in the U.S. are confronting
election, tainted by vote-rigging President Barack Obama's demands for a halt to
allegations, has become a pivotal settlement expansion by accusing him of promoting the
issue in increasingly frosty ties ethnic cleansing of Jews and jeopardising Israel's security.
between Kabul and Washington. Members of Congress allied with Israel and powerful lobby
As concerns mount about the groups in Washington are also trying to shift the focus of
extent of fraud in the August 20 administration policy from the Jewish settlements –
elections, a US official said arguing they are not an obstacle to peace – to demands for
Wa s h i n g t o n ' s e n v o y t o Arab governments to recognise Israel.
Afghanistan and Pakistan, Richard Holbrooke, raised
concerns about irregularities with President Hamid r Issuing a set of guidelines for the use of drugs against
Karzai. swineflu, the WHO has said patients with uncomplicated
illnesses do not need to take antiviral drugs. Worldwide,
r Prince Mohammed bin Nayef, a Saudi royal family most infected patients continue to display typical influenza
member who heads the kingdom's anti-terror fight, symptoms and fully recover within a week without any form
escaped little harmed from a suicide bomb attack in of medical treatment, the WHO said.
Jeddah. The deputy interior minister suffered only
superficial injuries after the suicide bomber got close to r Even asChina continues to reject accepting a time-frame
him and detonated his explosives . The Saudi wing of Al- greenhouse gas emissions
for reducing , a report by a
Qaeda was swift in claiming responsibility. government panel called for the country to set a 2030
deadline for its emissions to peak. This is the first time a
r One of Iraq's top Shia leaders Abdul-Aziz Al-Hakim
, , government body has hinted at a possible time-frame for
died of lung cancer in Tehran, at a time when Iraq is reducing emissions. With only four months to go before the
threatened with fresh political instability. Mr. Al-Hakim climate change summit in Copenhagen begins the
was the head of the Supreme Islamic Iraqi Council (ISCI) question of whether China will agree to a near-term cap in
since 2003, after his brother, Grand Ayatollah Muhammad its emissions remains crucial to a deal being struck.
Baqer Al-Hakim, was killed in a deadly car bombing in
Najaf. r High Commissioner of India to Sri Lanka, Alok
Prasad handed over to the U.N. Resident Representative,
r Nepal's Vice-President Paramananda Jha said he Neil Buhne, and the fourth consignment of relief goods
would rather quit his post than retake from India meant for the war-displaced population in
his oath. The Supreme Court has northern Sri Lanka. The 600-tonne consignment, valued
asked Mr. Jha, who took his oath in at over $3-million, arrived in Colombo on August 8. It
Hindi, to take it again in Maithili, his consists of more than 6,00,000 packages of grocery items,
mother tongue. The Supreme Court utensils, plastic mats, clothing materials including
has given him two options and Mr. Jha children's clothing, footwear, jerry cans and personal
told representatives of the Linguistic hygiene items.
Rights Joint Struggle Committee
Nepal that he will quit than retake the r Sri Lanka signed two key developmental projects worth
oath. $350 million with the Exim Bank of China.The Sri
Lanka Board of Investment
r A meeting in London between U.S. President Barack informed that Secretary to
Obama's special envoy George Mitchell and visiting t h e Tr e a s u r y S u m i t h
Israeli Prime Minister Binyamin Netanyahu was Abeysinghe signed the
reported to have paved the way for resuming the stalled agreements relating to the
peace process in West Asia. The meeting, which took place construction of the
a day after Mr. Netanyahu's talks with British Prime Colombo-Katunayake
Minister Gordon Brown, was said to have been aimed at Expressway and the
preparing the ground for Mr. Obama to announce a Hambantota Bunkering
Palestinian-Israel peace deal next month either during the Project with Vice-president
annual U.N. General Assembly session in New York, or at Zhu Xinqiang of the Exim
the G20 summit in Pittsburgh. Bank of China.

PT’s PrepTalk – September 2009 63


r Oxford University's first overseas r South Korea pressed North Korea to hold regular
campus in India, which is going to be set reunion of families separated for half a century, after the
up in Lavasa near Pune, has been two sides agreed in rare talks to host the next event this
embroiled in a land grabbing row, with autumn.
accusations of human rights violations
against the land developers. r Over 100,000 Indians , including former test cricketers
and chief justices, have signed a mercy petition addressed
r Indonesia's seismology agency said on August 9, it had to PresidentAsif Ali Zardari seeking clemency for Indian
recorded a powerful 7.3 earthquake near the main island of prisonerSarabjitSingh, who is on death row in a Pakistani
Java. The U.S. Geological Survey recorded the quake with a prison.
magnitude of 7.4 at a depth of 37 km (23 miles). Its
epicentre was 142 km (88 miles) southwest of r Iranian supreme leader, Ayatollah Ali Khamenei
Tasikamalaya in West Java, the Indonesian agency said. praised leading Iraqi Shiite politician Abdel Aziz al-
Residents in the capital Indonesia reported buildings Hakim as the symbol of the struggle against Saddam
shaking and some offices were evacuated. Hussein's regime as Iranians mourned his death.

r US officials are stepping up pressure on Israeli Prime r U.S. Senator Edward Kennedy , a
Minister BenjaminNetanyahu to cut a deal on curtailing towering figure in the Democratic Party
Israeli settlements, and they're holding out a prize that who took the helm of one of America's
both Netanyahu and President Barack Obama badly most fabled political families after two
want; strong ties between both leaders. older brothers were assassinated, died at
age 77, his family said.
r Amnesty International said that even though Iraq has
addam Hussein's regime
been free from S for six years, r Chinese vaccine maker Sinovachas received approval from
more than 1,000 prisoners are still facing death penalty in Chinese health authorities to mass produce the vaccine,
the country. Panflu, for the H1N1 flu
. The State Food and Drug
Administration gave the green light for the vaccine, which
r The Dalai Lama, on a controversial Sinovac says needs only one 15 microgram dose to be
humanitarian visit to flood-ravaged effective.
Taiwan denounced by China, steered clear
of talking about Tibet but said he was r Celebrity fashion designer Anand Jon was sentenced to
dedicated to the promotion of democracy. a minimum of 59 years in prison for
sexually assaulting aspiring models as
r Australian scientists have set out on a research for the young as 14, the Los Angeles County
proteins that cause multiple sclerosis
(MS). The District Attorney's Office said. Jon, 35,
research will be coordinated by Adelaide University along who had dressed socialite Paris Hilton
with other researchers from Perth, Brisbane and and singer Janet Jackson before his arrest
Melbourne. in 2007, was last November found guilty
of 16 counts, including rape, sexual
r After weeks of denial, the Pakistani Taliban battery and performing lewd acts on a
acknowledged for the first time that their chief Baitullah
Mehsud has died of wounds sustained in a US drone strike Logo Quiz: Answer Key
in the country's lawless tribal belt. Top militant
commanders Hakimullah Mehsud and Wali-ur-Rehman 1. VISA 11. Sun-microsystems
confirmed that the Taliban leader is dead. 2. Indian oil 12. Steel Authority of India
3. alcatel-lucent 13. Vodafone
r Disgraced Pakistani scientist, A Q 4. Andhra-bank 14. Gas Authority of India
Khan , who ran a clandestine nuclear 5. Yes Bank 15. Wockhardt
proliferation network, filed a petition 6. deutsche bank 16. DirectTV
in a court seeking the removal of the 7. Reuters 17. RPGGroup
protocol accorded to him by the 8. MasterCard 18. Kisan Group
government, saying that it made him 9. Hindustan-Motors 19. Bharat electronics
feel like a"prisoner" . 10. Indian Bank 20. Unichem

64 PT’s PrepTalk – September 2009


News in brief

Business and Economy


r Britain will pledge 340 million pounds in loans to plane- r India's top mobile firm Bharti Airtel hopes to conclude a
maker Airbus to make sure a part of its upcoming A350 merger deal next month with South Africa's MTN to create
passenger jet is built in the UK. Business Minister Peter a telecom giant and has no plans to sweeten its bid. Talks
Mandelson said at an Airbus plant in Filton, Bristol that between the two companies that were prolonged until the
the support would create and sustain more than 1,200 jobs end of September, are focused on "administrative issues".
within Airbus at its sites in Filton and Broughton in North
Wales, as well as over 5,000 jobs within the supply chain r Amazon, Microsoft and Yahoo! is
across Britain. planning to join a coalition of library
associations and non-profit groups in
r India's Tata Motors said it no opposing Google's ambitious book
longer needed UK guarantees scanning project. The settlement,
on loans for its Jaguar Land which gives the Internet search and
Rover (JLR) unit as it had advertising giant the rights to
secured private funding and was commercialize digital copies of
close to finding a commercial millions of books, is already facing anti-trust scrutiny from
backer for a European the Justice.
Investment Bank (EIB) loan.
r Cairn Energy, the exploration group would begin
r Microsoft and Nokia announced an alliance to bring pumping its first oil from a huge field in western India this
advanced business software to smartphones in a bid to week, a decade after taking a gamble on the area.
counter the dominance of Research in Motion's Blackberry
device. The alliance between the world's largest software r Russiaand Mongolia signed a deal to form a joint venture
firm and the largest mobile phone maker means the latest to exploit the Dornod uranium deposit in the resource-rich
online versions of Microsoft's Office suite of applications, former Soviet satellite state. The agreement between
including Word, Excel and PowerPoint, will be available on a Russia's state-owned nuclear energy giant Rosatom and
range of Nokia handheld devices. Mongolia's Mon-Atom is also potentially controversial as a
Canadian company, Khan Resources, still has a 58 percent
r General Motors has finalised an stake in the licence to the Dornod area.
agreement to sell the car
manufacturer Saab to a consortium r China's goods exports edged ahead those of the world's
which includes the head of the largest exporter, Germany, for the first time ever during
Swedish sports vehicle firm the first half of 2009, according to World Trade
Koenigsegg. The US car giant GM Organisation data. Chinese goods exports reached 521.7
is in bankruptcy protection in the US billion dollars over the first six months of the year, while
and put Saab up for sale in February Germany's reached 521.6 billion dollars.
in a bid to slim down its range of
brands and become profitable again. r Australia approved a massive energy project that will
supply natural gas worth tens of billions of dollars to China
r Australia and China struck their biggest trade deal ever, and India, but laid down extra environmental conditions.
as the world's two most valuable listed oil companies, The project is a joint venture by Chevron, Shell and
Exxon Mobil Corp and PetroChina , reached a $41 ExxonMobil, which has signed a record 41 billion US
billion (25 billion pound) liquefied natural gas (LNG) dollar contract with Chinese giant PetroChina and another
agreement. worth 21 billion dollars with India's Petronet.

PT’s PrepTalk – September 2009 65


r Tata Steel, the world's No.8 steelmaker by output, r The board of Adlabs Films has
posted a consolidated June quarter loss as poor demand at approved the raising of an amount
its European unit Corus and lower steel prices weighed on of up to Rs. 600 crore by way of
earnings. Tata Steel, which bought Corus, Europe's rights offer of equity shares to
second-largest steelmaker, in 2007,said that the the shareholders, subject to
consolidated April-June net loss was at 22.39 billion necessary sanctions. The funds
rupees, (282.6 million pounds) compared with 39.15 billion raised through the rights issue
rupees profit a year earlier. would, according to a company statement, be utilised for
expansion and growth opportunities, including investment
r Dell reported stronger-than-expected quarterly profit, in various projects in India and abroad.
showing it was better able to cut costs and protect prices on
its products than analysts, or its own executives, had r The Volkswagens ' supervisory board approved absorbing
predicted. Shares of Porsche into VW by the end of 2011, with an initial stake to
the world's No. 2 be acquired this year for euro 3.3 billion ($4.72 billion).
personal computer Under the agreement, the merger is to be fully completed
maker rose 7 percent in the next two years, and Volkswagen's solid financial base
after the earnings and Porsche's independence will be preserved.
announcement,
which preceded the close of stock market trade by a few r JP Morgan Asset Management India
minutes, as investors welcomed signs that its business has launched its first investment
could be stabilizing. confidence index (ICI) in association
with ValueNotes. It will be published
r Japanese core consumer prices fell at the fastest annual on a quarterly basis. The key objective
pace on record in July and the slide broadened on weak of the ICI is to quantify confidence in
final demand, potentially putting pressure on a reluctant the investment environment among
Bank of Japan to rein in a deepening deflation. The investors and advisors.
politically sensitive jobless rate also hit a record high 5.7
percent. r Stung by the front page advertisements in newspapers
issued by Anil Ambani-owned Reliance Natural
r US high-tech giant Apple and China Resources Ltd. (RNRL), questioning the role of the
Unicom announced they had reached a Petroleum and Natural Gas Ministry and the Empowered
multi-year deal to launch the widely Group of Ministers (EGoM) on the gas price, a divided
popular iPhone in the world's largest Petroleum Ministry is contemplating various options
mobile market later this year. They have including looking closely at the issue of advertisement code
signed a multi-year deal with China violation to nail RNRL in its ad blitz.
Unicom to bring iPhone to China, and expect the launch to
be in the fourth quarter of 2009. r India's foreign exchange reserves eased by $616
million to $271.025 billion during the week ended
r The public sector Coal India Ltd (CIL) is planning to August 14 from $271.641 billion a week earlier, the Reserve
import around four million tonnes of coal within this fiscal, Bank of India informed.
CIL Director, Marketing, A. K. Sarkar, said. Given the
lower calorific value of Indian coal, the proposed quantum r SBI Life Insurance has emerged as number one life
is equivalent to six million tonnes of domestic coal. insurer across the
globe in number of
r MphasiS, the Bangalore-based IT Million Dollar Round
and business process outsourcing Table (MDRT) members.
(BPO) company, is acquiring AIG Over the last three years
Systems Solutions Pvt Ltd SBI Life has steadily
(AIGSS), an Indian captive back moved up the MDRT ranks with 2,677 members in 2009.
office arm of the insurance major, The MDRT membership is an exclusive honour that is
American International Group achieved by less than one per cent of the world's life
(AIG). insurance and financial services advisors.

66 PT’s PrepTalk – September 2009


r L&T has bagged four EPC orders from Qatar, UAE and r Citigroup plans to sell 20 businesses in consumer finance
Oman aggregating $217.45 million (Rs. 1,040 crore) for area, many of them located in Europe, its Chief Executive
constructing electrical substations for Vikram Pandit said. He said
customers such as Qatar Petroleum, the move was due to the shift in
Kahramaa, Dewa and OETC. These the consumer finance market
projects will be executed by Electrical & where "there is less funding
Gulf Projects Operating Company availability and they are probably
(E&GP OC), part of L&T's less robust as businesses.”
Construction Division.
r Home appliances manufacturer Whirlpool Corporation
r IBM has signed a multi-year service agreement with will close its manufacturing facility in neighbouring
Nomura Services India, a subsidiary of leading financial Indiana by next year, resulting in approximately 1,100 job
services group based in Tokyo, Japan. Nomura will cuts, as it seeks to cut costs and trim excess capacity.
implement IBM's end-to-end business continuity and
resiliency services to bolster its business continuity, r A member of German chancellor Angela Merkel's
disaster and system failure response strategies. IBM will conservative party has pushed for a delay of the decision
also provide Nomura with an in-city work area recovery about the fate of General Motors' European unit Opel
solution. until after Germany's federal elections.

r R amalinga R aju f a m i l y r Ireland's government opposes nationalising top banks


promoted Maytas Infra Ltd Bank of Ireland and Allied Irish Banks as it would hit their
reported a net loss of Rs 489.79 funding and "torch" shareholders, Finance Minister Brian
crores for FY''09 and attributed Lenihan said.
the poor showing to what it
called "unprecedented events" r Lloyds Banking Group has
linked to Satyam Computer. offered to sell Scottish branches
of Lloyds TSB as well as its
r Toyota Motor Corp will end production at a California Cheltenham & Gloucester
plant it has shared with General Motors for 25 years, network to ease European
prompting regret and criticism from labor and politicians Commission concerns over state
facing more job losses in an industry and a state pummeled aid and market share. Lloyds and
by recession. RBS , which was bailed out by the
British government in the wake of
r HCL Technologies has raised 5 billion rupees through the credit crunch, has to come up
bonds, two sources with knowledge of the deal said. The with restructuring plans to comply with EU antitrust
company sold two-year bonds carrying a coupon rate of regulations.
7.55 percent and three-year bonds yielding 8.20 percent.
The coupon payments will be made quarterly. r The European Commission approved Lufthansa's
takeover of Austrian Airlines (AUA) but said the
r U.S. motorcycle maker Harley-Davidson Inc is German flag carrier must make promised changes to
optimistic about a recovery in the U.S. economy but would resolve competition concerns. Lufthansa swiftly accepted
continue to tread carefully by adopting cost-saving the conditions to seal a deal which makes it the
measures. Milwaukee-based Harley- uncontested leader in the European airline industry.
Davidson also said it plans to start
selling its motorcycles next year in India, r The Reserve Bank of India (RBI)
the world's second-largest market for has transferred surplus funds to the
bikes. It is betting on a rising middle- tune of Rs. 25,009 crore to the Union
class population in the world's second- Government during 2008-09. This is
fastest growing major economy to create about Rs. 10,000 crore more than what
a demand for its large and powerful it had transferred in 2007-08,
machines. according to RBI annual report.

PT’s PrepTalk – September 2009 67


r State-run Gas Authority India Ltd has signed a contract r Amazon.com Inc joined the opposition to Google Inc's
to buy natural gas from Reliance Industries for plan to digitize millions of books, saying
production of LPG. GAIL signed a Gas Sales and Purchase that the proposed deal would
Agreement (GSPA) for buying 2.6 million standard cubic fundamentally change copyright law
meter per day of gas from RIL's KG-D6 fields at and violate antitrust law.
Government approved price of USD 4.2 per million British
thermal unit. r The government exempted business auxiliary services
provided by sub-brokers to stock brokers, or by anybody
r India has finalised negotiations for a to someone engaged in manufacturing of excisable items
$1.2 billion loan from the World Bank like pharmaceuticals, medicines and perfumes from
to help recapitalise state-run banks. paying service tax.
Last year, the World Bank's India head
said the bank agreed to increase lending r China's threat to put ban on the seafood import from India
to $14 billion for three years, including has caused worry to exporters of Veraval in Gujarat since
loans for recapitalising state-run banks. fishing is one of the biggest export businesses of the state.

r General Motors has agreed to set up a light commercial r IT Company Tata Consultancy Services (TCS) said it
vehicle production venture with major Chinese automaker was hoping to implement the Centre's ambitious Rs 1,000-
FAW Group, with total investment of 2 bn yuan ($293 mn). crore 'Passport Seva Project' at six pilot locations in October
The 50-50 joint venture, based in the northeast China city this year and will take this number to 77 by June 2010.
of Changchun in Jilin province, will make light-duty trucks
and vans. r The presidents of Russia and India
have pledged to increase the volume
r Mukesh Ambani led Reliance Industries Ltd (RIL) has of trade between their huge nations
decided to get the security covers from the Central to $10 billion next year. Russia's
Industrial Security Force (CISF) for its Jamnagar refinery Dmitry Medvedev and India's
in Gujarat. RIL's Jamnagar refinery is world's biggest Pratibha Patil met in the Kremlin
Greenfield refinery. during Patil's fist visit to Russia.

r Sejal Architectural Glass Limited r In a bid to support drought-hit farmers, State Bank of
(SAGL) plans to invest Rs 1,500 crore to India launched a bouquet of measures for farm loan
meet the increasing demand of float glass borrowers including interest rate reductions on irrigation
in the country, a top company official and crop loans. SBI reduced interest rates for minor
said. irrigation loans upto Rs 25 lakhs to eight per cent in the first
one year and nine per cent in the second and third years.
r The Reserve Bank of India fixed the The existing rates in this category are 10.5 per cent-13, 25
Reference rate for the US currency at Rs 48.88 per dollar per cent.
and the single European unit at Rs 69.81 per euro from Rs
49.06 per dollar and Rs 69.78 per euro respectively. r Competition watchdogs of BRIC (Brazil, Russia, India and
China) countries sought co-operation in tackling cartels
r India's financial hub Mumbai is emerging as one of the and anti-competitive agreements and said they would
"world capitals of the future", with an expanding promote fair and free practices in the market by proper
industrial base, the world's largest movie industry and a enforcement of competition laws.
burgeoning middle class making the city globally
prominent, a latest study has said. r The government has formed a five- member committee
headed by Kirit S Parikh to suggest reforms in pricing of
r Auto component manufacturer, auto and cooking fuels. "The Expert Group headed by
Sona Koyo Steering Systems Ltd, Parikh will submit its recommendations in three months,"
has joined hands with four domestic Petroleum Secretary, R S Pandey told reporters.
and international companies for
producing car parts and will set up r Market regulator SEBI has notified the ICDR guidelines
four manufacturing units for the setting new disclosure norms for companies wishing to
purpose. raise funds from the capital markets.

68 PT’s PrepTalk – September 2009


News in brief

Sports
r The England badminton team has withdrawn from the r Andy Murray has seized the
World Championships in India due to "a specific momentum a fortnight before
terrorist threat." They took this decision based on their the US Open , the Scot
own assessment of the situation on the ground, having exploding into form with his
takenintoaccounttheFCOTravelAdvicewarningofahigh fifth title of the season at the
threat from terrorism in parts of India, including MontrealMasters.
Hyderabad.
r Dean Richards has been banned from any involvementin
r Andy Murray defeated Jo-Wilfried Tsonga 6-4, 7-6 (10/8) the Heineken Cup for three yearsafter beingfoundguilty
in the semi-finalsof the ATP Montreal Masters to rise to of organising the fabrication of a blood injury and a
secondintheworldforthefirsttimeinhiscareer. TheScot subsequent cover-up when he was director of rugby at
will replace Rafael Nadal in the slot behind Roger Federer Harlequins.
whenthenewrankingswillbereleased.
r Jamaica's Usain Bolt shattered his own 200 metres
r Britain's 2005 marathon world world record to win gold at the world championships in a
champion Paula Radcliffe won breathtaking 19.19 seconds and secure his place as the
theNewYorkhalfmarathon.The35- greatestsprintereverseen.Oneyearexactlyafterheposted
year-old - a world silver medalist at 19.30 seconds at the Beijing Olympics to beat Michael
10,000 metres in 1999 - has been Johnson's "untouchable"19.32 from the Atlanta Games, he
struggling for several months with a sliced another 11 hundredths of a second off just as he did
foot injury whichhad cast doubtover inSunday's100whenheran9.58.
herparticipation.
r The Indian team received an 8-2 plastering at the hands
r Wayne Rooney scored the winner as Manchester of Spain in its first hockey Test. The Spaniards, who are
United began their bid for a fourth consecutive Premier World No. 3, simplytoyedwiththe Indians,pumpingin five
League title with a 1-0 defeat of Birmingham City but goals in the first half before adding three more in the
Liverpoolcrashed2-1atTottenhamHotspur. secondsessiontocompletetherout.
r Britain's Jessica Ennis won her r India let in an early goal and then failed to convert the
country's first-ever world scoring chances to lose 0-1 to England in its first medal
heptathlontitle afterdominating round Group E match of
the gruelling seven-discipline, the women's Junior
two-dayevent.Enniswentintothe World Cup. India, which
final event, an energy-sapping has carried forward three
800m,171pointsaheadofPoland's points to the second phase
Kamila Chudzik and produced a after topping the group,
run of 2min 12.22sec to ensure her place atop the podium now needs to win both its
with a world leading total of 6,731 points. The 23-year-old, matches against Chile and
who had the best personal best around two laps of the top Korea in order to make it
eight competitors, went out hard, overtaking Ukraine's to the semifinals. India
Olympic champion, Nataliya Dobrynska almost began strongly earning two penalty corners, but both were
immediatelyandbuildingupa15-metrelead. wellanticipatedbyEnglandgoalkeeper,GemmaIble.

PT’s PrepTalk – September 2009 69


r S p a - Fr a n c o r c h a m p s r The Indian Premier League II (IPL)
(Belgium), Force India's hosted in South Africa earlier this year
Giancarlo Fisichella created helped Cricket South Africa (CSA) record a
history by giving India their turnaround of over 80 million rands (1
first-ever Formula One race rand=US 13 cents) for the 2008-09 season
point, finishing a sensational after budgeting for a loss of 75.9 million
second in the Belgian Grand rands.
Prix, even as Ferrari's Kimi
Raikkonen overtookthe Italian, r Muhammad Shabbir and Muhammad Munir of
who started from the pole, to Pakistan created history by taking their team to their first-
wintherace. ever appearanceat the Omega Mission Hills World Cup
as they finished in the top-three at the Asian Qualifiers.
r Domestic cricketers have reason to be more motivated Pakistan's golf community erupted into celebration when
when they play the Ranji Trophy this season. The Board the national team qualified for the Omega Mission Hills
of Control for Cricket in India (BCCI) at its working World Cup for the first time after finishing in the top three
committeemeetingraised the prize moneyfor the national attheAsianQualifierinMalaysia.
champions to Rs 2 crore, from 60 lakh in the previous
season.Therunners-upwouldbericherby a crore withthe r Pakistan is eyeing a compensation package of around $18
losingsemi-finalistsgettingRs50lakheach. million in exchange for dropping its legal proceedings
against the International Cricket Council (ICC) over
r TheBoard of Control forCricket in India(BCCI)willwrite staging the 2011 World Cup. Ijaz Butt, the Pakistan
to the Attorney-General Goolam E. Vahanvati on the Cricket Board (PCB) chairman, said in Lahore that in
controversial "whereabouts" clause of the World Anti addition to the $10.5 million that is guaranteed to Pakistan
Doping Agency (WADA) code adopted by the as the hosting fees of its share of 14 World Cup games, the
InternationalCricket Council(ICC). PCB is expecting to receive around $8 million more from
theICC.
r What is it about Twenty20 leagues and controversy? Not
long ago the Karnataka State Cricket Association r New Zealand captain Daniel Vettori
announced that it was launching a franchise-based T20 has joined the ranks of Test cricket's elite
state league with eight teams taking part from the all-rounders, becoming the eighth player
different districts of Karnataka. The proposed model was to completethe doubleof 300 wickets and
a low-cost, low-return version of the Indian Premier 3,000runs. Vettori beganthesecondTest
League. against Sri Lanka here needing two
wicketstotakehistallyto300.
r Shiv Kapur played his best golf of the
year, with no less than 21 birdies and an r Indian skipper Bhaichung Bhutia celebrated his 100th
eaglein fourrounds,butat theendof the international appearance in style, slotting home a goal in
week, his double bogeys, two of them on India's 2-1 victory over Kyrgyzstan in the ONGC Nehru
the final day, pegged him back to tied Cupfootball attheAmbedkarstadium.
sixth at the Johnnie Walker
Championships at the Gleneagles r India's Sania Mirza crashed out of
HotelGolfcourse. the US Open second round after
being handed one of her worst
r Somdev Devvarman, who became the first Indian in career defeat by Italian Flavia
seven years to qualify for the Grand Slam singles main Pennetta 6-0, 6-0 at Flushing
draw, making to the US Open, hopes to become a regular Meadows. The 10th seed Italian
feature in all the four Majors. In a rain-interrupted final took just 50 minutes to complete
qualifying match, Somdev defeated Poland's Jerzy thewhitewash. Sania, who had
Janowicz 6-3, 6-2 to enter the main draw. He now plays reached the fourth round of US
110th-ranked Frederico Gil of Portugal in the first round Open in her breakthrough year in 2005, committed 28
of the US Open. unforcederrorstoheropponents10.

70 PT’s PrepTalk – September 2009


Brand icon

REEBOK
Celebrate Individuality in Sport and Life

R eebok International Limited, a subsidiary of German


sportswear giant Adidas, is a producer of athletic
footwear, apparel, and accessories. The name comes
from the Afrikaans spelling of rhebok, a type of African antelope
or gazelle. The company, founded in Bolton, England in 1895,
Reebok's global marketing
campaign, 'Your Move' launched in
March of 2008 and evolved Reebok's
positioning as the brand that
celebrates individuality and supports
was originally called J.W. Foster and Sons but was renamed those who choose to do things their
Reebok in 1958. The company's founders, Joe and Jeff Foster, way. Expressed as a global brand
found the name in a dictionary won in a race by Joe Foster as a campaign, 'Your Move' was an invitation to people to do it their
boy; the dictionary was a South African edition, hence the way in sport and in life. The 'what's your move?' ad was a literal
spelling. expression of this philosophy: key assets including Thierry
Henry and Alexander Ovechkin showed us their moves and
Reebok surged in invited consumers to show us theirs.
popularity in 1982 after
the introduction of the Reebok understands that people are, above all, unique.
Freestyle athletic shoe, Reebok's positioning reflects this; celebrating the distinct
which was designed for qualities that make people who they are - their unique points of
women and came out view, their individual style and their remarkable talents and
when the aerobics craze accomplishments. Reebok celebrates their individuality, their
started. Not only was the authenticity and the courage it takes to forge their own path to
Reebok Freestyle popular as athletic wear, but also as casual greatness. While some may call them crazy or eccentric, Reebok
wear. As a result the Freestyle became an icon of the 1980s calls them visionary and original.
fashion scene with hi-top versions (including two velcro straps
at the top) and colors, including white, black, red, yellow, and Commitment to Corporate Responsibility is an important
blue. Reebok continues to produce the Freestyle as it is popular legacy and hallmark of the Reebok brand. For two decades,
with cheerleading, aerobic dancing, the gym and consumers. Human Rights, through the Reebok Human Rights program,
was the primary focus of this effort. Reebok has expanded on
Following the Freestyle success, Reebok also introduced an what had been built and created a Global Corporate Citizenship
athletic shoe for men, called the Ex-O-Fit. Similar to the platform with a purpose for the brand that will help
Freestyle, it came in low-top and hi-top versions; however, underprivileged, underserved youth around the world fulfill
unlike the Freestyle hi-top with two velcro closure straps, the their potential and live healthy, active lives.
Ex-O-Fit only had one strap. One of the designers of this early
footwear was the founder's son, David Foster. Endorsements

In the late 1990s, Reebok made a strategic commitment to Cricket teams with kits manufactured by Reebok
align its brand with a select few of the world's most talented, Football clubs/leagues with kits manufactured by Reebok
exciting and cutting-edge athletes. Since then, the company has Rugby League
focused on those athletes who represent the top echelon of Colleges
sports and fitness.
Reebok is dedicated to providing each and every athlete -
In 1992, Reebok began a transition from a company from professional athletes to recreational runners to kids on the
identified principally with fitness and exercise to one equally playground - with the opportunity, the products, and the
involved in sports by creating several new footwear and apparel inspiration to achieve what they are capable of. We all have the
products for football, baseball, soccer, track and field and other potential to do great things. As a brand, Reebok has the unique
sports. That same year, Reebok began its partnership with golfer opportunity to help consumers, athletes and artists, partners
Greg Norman, resulting in the creation of The Greg Norman and employees fulfill their true potential and reach heights they
Collection. may have thought un-reachable.

PT’s PrepTalk – September 2009 71


Book review

A Suitable Boy
by Vikram Seth

A Suitable Boy is the story of several Indian


families whose paths intersect continually
over a period of about a year. India has only
recently gained its independence from the British,
and in his lengthy tome, Seth takes us through all the
Savita and Pran start their family life after marriage.
Pran's brother Maan falls in love with a girl from an
unsuitable family and his whole life gets
transformed. On the other hand, Lata's brother has a
fight in Calcutta. The story delves into the normal
phases of that momentous change, from the modern and day to day routine life activities of India in
city to the backward country, and from the political to 1951-52.
the intensely personal. But, as the title suggests, A
Suitable Boy never strays far from the subject of love Seth also does an admirable job handling the
and marriage–indeed, the book both begins and ends enormous cast of characters. Even the most minor
with weddings. characters are easily distinguishable from each other,
and by the end of the book it is hard to avoid the
Winner of 1994 commonwealth Writers Prize, Vikram Seth's feeling that you know these characters intimately (in some
A Suitable Boy is a novel very realistically depicting the social and cases, quite literally so). Even more impressively, Seth deals
political life of post independence India. deftly with the dizzying complexity of India's historical
background.
The story revolves around four families-the Kapoors,
Mehras, Chatterjis and Khans. The backdrop of the story is the The novel is basically a love story and efforts of Lata's mother
political upheaval in the post independent and post partitioned to find a suitable boy for her daughter. There are four families
India of the 1950s. Particularly, the story deals with the life of involved in the story and the backdrop is the newly independent
Mrs. Rupa Mehra (a widow) and her youngest daughter Lata for India of 1950s still struggling and grappling with the aftermath
whom Mrs. Mehra is looking for a suitable boy. Lata is of of partition. The author weaves a compelling tale revolving
marriageable age but quite an independent and rebellious kind around these four families and their love, hatred, sadness, daily
of a girl who is already in love with a Muslim boy. Mrs. Mehra's chores, lives, etc. the novel deals with the common man in times
sole aim in life is to look after and take care of her family, of crisis and a society that is a mix of different cultures,
especially finding a suitable match for her youngest daughter. communities, and castes undergoing a change. These ordinary
people are busy and trapped in the web of their own complex
The background of the novel is the underlying social and personal relationships, having their own prejudices
Hindu/Muslim conflict which flooded the period immediately and ambitions.
after independence of India and Pakistan, and which is even
today a threat to the South Asian subcontinent. The novel shows This is one of the longest novels published in literature and
a conflict between Hindus and Muslims in the fictional city of it proves you wrong if you think lengthy novels are boring!!
Brahmpur, where the story is primarily set. One of the main aims
of the novel is to infuse the spirit of religious tolerance among About Vikram Seth
the Hindus and Muslims.
Vikram Seth was born in India. He was
The story begins with Savita (Lata's elder sister and Rupa's educated here and in England, China and
daughter) and Pran Kapoor's wedding. It is here that Lata the USA.
decides and makes it vocal that she will not go in for an arranged He has written great books in every genre:
marriage like her sister. With time passing by, three suitors come verse novel (The Golden Gate), travel
in Lata's life, all from diverse backgrounds. Lata likes a Muslim book (From Heaven Lake, the winner of
boy who was her classmate and is a writer, but her mother has the Thomas Cook Travel Book Award),
chosen a self-made business man for her. Life moves on and and epic masterpiece (A Suitable Boy).

72 PT’s PrepTalk – September 2009

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