Snapping of connectors caused GSLV failure: ISRO

1. A Preliminary Failure Analysis Team constituted to study the flight data of GSLV-F06,
which crashed seconds after its launch on December 25, said that the primary cause of
the failure was “the untimely and inadvertent” snapping of a group of 10 connectors
located at the base of the Russian Cryogenic stage.
2. The Preliminary Failure Analysis Team was chaired by the former ISRO Chairman, G.
Madhavan Nair, and analyzed the flight data along with members of the Launch
Authorisation Board, the Mission Readiness Review Committee as well as senior
functionaries of the GSLV Project and experts.
3. The ISRO has now constituted a Failure Analysis Committee to carry out an in-depth
analysis of the flight data of GSLV-F06 and data from the previous six flights of GSLV.
The committee will establish reasons for the failure of GSLV-F06 and recommend
corrective actions on the GSLV vehicle, including the remaining solitary Russian
Cryogenic engine. The Failure Analysis Committee has 11 experts drawn from within
ISRO and outside.
4. The ISRO has also constituted a Programme Review and Strategy Committee to look
into the future of the GSLV Programme and the launches of the INSAT/GSAT Series,
INSAT-3D and Chandrayaan-2. It will work towards the operationalisation of the
indigenous Cryogenic Stage and come up with a strategy for meeting the demands of
communication transponders in the immediate future, the statement said. This seven-
member committee will be headed by K. Kasturirangan, former ISRO chairman.
5. These two Committees have been requested to submit their reports by the end of
January 2011. The reports will be presented to eminent scientists and engineers,
including A.P.J. Abdul Kalam, M.G.K. Menon, Yash Pal, U.R. Rao, K. Kasturirangan, Mr.
Madhavan Nair, R. Chidambaram, and R. Narasimha.
6. A panel chaired by S.C. Gupta, former member of Space Commission, will guide and
facilitate an “internal exercise” by the ISRO chairman, and elicit “views from the ISRO
community at all levels to gear up for the complex and challenging space missions
ahead.”
No pressure on Iran front: India
1. The Foreign Office on Friday denied that India acted under pressure from any other
country while asking its companies not to use the Asian Clearing Union (ACU)
mechanism in settling transactions in oil and gas.
2. India is a member of the nine-country ACU and has utilised it extensively to settle gas
and oil transactions with Iran. But on Monday, the Reserve Bank of India asked
companies not to use this mode.
3. “We have seen reports regarding problems with respect to settlement of current
account transactions with Iran under the Asian Clearing Union mechanism. This is a
technical issue and the Reserve Bank of India is seized of the matter. Efforts are being
made to resolve the issue as soon as possible,” said the Foreign Office.
4. The Ministry of External Affairs' denial comes even as the sole appreciation for this step
came from the U.S. Treasury's Department's pointman on Iran sanctions Stuart Levey.
“It is a significant action,” he had told the Wall Street Journal.
5. Under the ACU mechanism, third countries find it difficult to trace transactions by
companies because the settlements are made by the Central banks of the member
countries. The RBI circular did not mention Iran but this is the only country with
significant crude exports settled with India through the ACU which was set up by the
United Nations.
2.5 times pay hike recommended for newspaper employees
1. The Wage Boards for working journalists and non-journalists and other newspaper
employees submitted their recommendations to the government on Friday,
recommending 2.5 to 3 times hike in basic pay and fixing the retirement age at 65.
2. The revised basic pay has been computed after merging the existing basic pay, the
dearness allowance and the 30 per cent interim relief already granted besides 35 per
cent variable pay, said Chairman of the Wage Boards Justice G.R. Majithia.
3. The recommendations have been proposed to be implemented from January 8, 2008.

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 4. The Boards proposed a variable pay of 35 per cent.
5. This will be implemented from July 1, 2010.
6. “We have also proposed establishment of a permanent tribunal to redress grievances
between employers and employees,” Justice Majithia said after presenting the
recommendations to the Labour and Employment Secretary Prabhat Chaturvedi.
7. The recommendations would be examined by the Ministry before they are tabled before
the Union Cabinet for approval, Mr. Chaturvedi said.
8. The Boards also recommended that the dearness allowance shall be paid by-annually
with effect from July 1 and January 1 every year and the rate of neutralisation for
determining the DA would be 100 per cent of the basic pay for all groups of employees.
9. It has been recommended that the HRA be paid at the rate of 30 per cent, 20 per cent
and 10 per cent of the basic pay to employees posted in areas defined as area X, Y and
Z respectively.
10. Similarly, transport allowance at the rate of 20 per cent, 10 per cent and five per cent
shall be paid by newspaper establishments to its employees posted in respective areas
defined as X, Y and Z respectively.
11. The hardship allowance has been recommended at Rs. 1000 for employees working in
hilly areas.
12. “The employees working in the newspaper establishment of classes I and II and classes
III and IV shall be paid medical allowance at the rate of Rs. 1,000 and Rs. 500 per
month per employee respectively. But no medical allowance shall be paid to employees
who are covered by the Employees State Insurance Corporation.”
13. News agencies with a revenue of over Rs. 60 crore have been put in the same place as
top rung newspapers following the Boards' reclassification of news papers and news
agencies.
14. The Boards were constituted three years ago for the purpose of fixing or revising rates
of wages in respect of working journalists and non-journalists and other newspaper
employees.
Aim each move in chess for better results: Nebolsina
1. Vera Nebolsina of Russia - World junior chess champion
Tendulkar features in IAF calendar
1. Cricketer Sachin Tendulkar can now be seen in Indian Air Force fatigues with Sukhoi
fighter aircraft in the backdrop in the IAF's 2011 calendar.
2. Mr. Tendulkar appears on the January page with a Su-30MKI in the background.
3. Mr. Tendulkar is the only person appearing in the calendar which otherwise carries the
pictures of various fighter planes and transport aircraft of the IAF.
4. On September 3, the IAF conferred the honorary rank of Group Captain on Mr.
Tendulkar for his cricketing achievements and contribution to the nation. He is the first
person with no aviation background to receive the honour.
Thousands flee Australian floods
1. Floods triggered by tropical cyclone Tasha have hit the farming and mining belt near
Brisbane particularly hard, cutting road and rail links and crippling the region's all-
important coal production.
Strains in Egypt-Iran ties affect Gaza aid
1. Strains in Egypt's ties with Iran have come in the way of the delivery of humanitarian
aid that is being ferried by Asian peace activists, the majority of whom are Indians, to
the besieged Palestinians residing in Gaza.
2. The humanitarian aid caravan which began its journey from Rajghat in New Delhi has
now passed through Pakistan, Iran, Turkey, Lebanon and Syria.
3. However, the relief material that is to be shipped from the Syrian port of Latakia to Al
Arish in Egypt cannot be moved because of Cairo's refusal to grant visas to Iranian
nationals who are part of the caravan, said a statement from the New Trade Union
Initiative (NTUI), the organisers of this trans-Asia event.

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 4. Egypt and Iran have a tense political relationship, which had once led Iranian President
Mahmoud Ahmadinejad to accuse the Egyptian government of being a “partner in
crimes in Gaza”.
5. During its journey, the caravan has grown to reach a strength of 164 members. Out of
these, 60 are from India, 32 from Jordan, 20 from Iran, 13 from Indonesia, 10 from
Lebanon, nine from Pakistan, six from Turkey, four from Bahrain, three from Malaysia,
two each from Japan and Bangladesh and one each from Syria, Azerbaijan and
Tajikistan.
6. The delegates are carrying with them, medicine, foodstuffs and toys, worth one million
dollars.
NRIs in U.K. New Year honours list
1. London-based Indira Patel has been appointed Dame Commander of the British Empire
(DBE) for her services in the field of human rights.
2. Ravi Parkash Chand, Head of Equality and Diversity, Home Office in Northamptonshire;
and Dr. Minaxi Sharad Desai, Consultant Cytopathologist and Clinical Director at the
Manchester Royal Infirmary, have been made Commanders of the British Empire (CBE).
3. Among those who have been appointed Officers of the Order of the British Empire (OBE)
are Buckinghamshire-based Nirpal Singh Riat for services to charity; and Purnima
Tanuku for services to families in Lancashire.
4. Sarup Singh Dhandia, a Leicester-based artist, is among the three NRIs who have been
made Members of the Order of the British Empire (MBE). Others are: Carolyn Dhanraj
for services to the public and voluntary Sectors, and Surinder Kaur Dhillon for services
to community relations.
5. Doctors honoured in various categories include Dr. Sanjoy Kumar, Dr. Ashok Pathak and
Dr. Satya Vrat Sharma.
6. Leicestershire-based sitar player and teacher, Dharambir Singh Dhadyalla, has been
recognised for services to Indian music; and Ratilal Devchand Shah for services to the
Indian community in London.
7. Also honoured are Adil Rajput, executive officer, Jobcentre Plus, Department for Work
and Pensions, Durham; Dr. Jacques Rangasamy, senior lecturer, University of Salford,
for services to multicultural arts education, in Greater Manchester; Urmila Thakkar for
services to the community; Pam Vedhara for services to local government; and Chelliah
Yogamoorthy of Highways Agency, Department for Transport.
The challenges confronted by Supreme Court in 2010
1. The Supreme Court faced a stiff challenge in 2010 in dealing with allegations of
corruption against judges of the higher judiciary. It took a bold decision not to elevate
the then Karnataka High Court Chief Justice, P.D. Dinakaran (who is at present Chief
Justice of Sikkim High Court), as a judge of the Supreme Court following a controversy
over alleged land grab.
2. Even as Justice Dinakaran was shifted out of the Karnataka High Court, Parliament
initiated removal proceedings against him in respect of certain allegations and the probe
is pending before a committee headed by Justice Aftab Alam, Judge of the Supreme
Court, who succeeded Justice V.S. Sirpurkar, who resigned.
3. In a big relief to the Tamil Nadu government, the court granted protection for the
continuance, for one more year, of the law that provides the Backward Classes, the
Most Backward Classes and the Scheduled Castes/Scheduled Tribes 69 per cent
reservation in jobs and education.
4. It asked the State Backward Classes Commission to revisit the reservation issue on the
basis of the quantifiable data in respect of the communities in question. If the
Commission wanted to exceed the 50 per cent ceiling while re-fixing the quota, it could
take into consideration the parameters laid down by the Supreme Court in the Mandal
case judgment: compelling circumstances based on local conditions.
5. To deal with the problem of foodgrains rotting in godowns, the Court asked the Centre
to consider distributing them at “very low cost” or “no cost” as a short-term measure.
When Union Agriculture Minister Sharad Pawar confronted the court by saying that no
order was passed but only a suggestion was made, the court again reiterated that is its

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 direction on supply of rotting foodgrains was only an order and not a suggestion. The
court referred to media reports on Mr. Pawar's statement and said, “It was not a
suggestion. It is there in our order.”
6. Efforts of the former Tamil Nadu Chief Minister, Jayalalithaa, to get the disproportionate
case against her and four others pending in a Bangalore court stayed on two occasions
during the year did not fructify as the court was firm that the trial must proceed.
However, the Supreme Court permitted the trial court to appoint an expert translator to
assist in the trial.
7. The court agreed to reopen the Bhopal gas tragedy case by admitting a curative petition
filed by the Centre for restoration of the stringent charge of culpable homicide not
amounting to murder, which attracts the maximum punishment of 10-year jail term,
against the accused. A trial court in Bhopal had convicted the accused to undergo two-
year imprisonment.
8. Subsequently, coinciding with the anniversary of the 1984 Bhopal gas tragedy, the
Centre filed a curative petition seeking enhancement of the compensation of $470
million determined by the Supreme Court in 1989 on the ground that this settlement
was arrived at on the basis of assumptions of truth unrelated to realities. Both the
matters are still pending.
9. While determining the question as to which parent the care and control of a child should
be given, the paramount consideration remains the welfare and interest of the child and
not the rights of the parents under the statute, the court said.
10. In a big relief to the Mayawati government in Uttar Pradesh, the Court held that the
Noida park area would not come under the ambit of ‘forest' and hence permitted the
erection of statues and other structures in the park.
11. The court decided to examine industrialist Ratan Tata's petition, which alleged that the
publication of the tapes of his private conversations with corporate lobbyist Niira Radia
had infringed his right to privacy. Mr. Tata has raised an important question relating to
the interpretation of the Article 21 of the Constitution concerning right to life, “which
also includes the right to privacy.”
12. The court came to the rescue of the press and whistle-blowers when it said, “If a speech
or article, editorial contains something which appears to be contemptuous and this
Court or the High Court is called upon to initiate proceedings under the Contempt of
Court Act, the truth should ordinarily be allowed as a defence unless the court finds that
it is only a camouflage to escape the consequences of deliberate or malicious attempt to
scandalise the court or is an interference with the administration of justice.”
13. It also decided to examine, by a Constitution Bench, the conflict between the right of
citizens to obtain information under the Right to Information (RTI) Act and the right to
immunity enjoyed by the judiciary not to disclose information pertaining to appointment
of judges.
14. In the Sethusamudram case, the court ruled out giving any direction relating to the
project or vacating the stay on the project till the final report of the expert committee
examining the feasibility of carrying it through Dhanuskodi instead of Rama Setu,
submitted its report in February 2011.
15. On the whole, the Supreme Court stood up to the expectations and reaffirmed the faith
people continued to have in the judiciary when other institutions fail to perform their
duty satisfactorily.
Current account deficit surges 72 % to $15.8 b in July-Sept
1. FDI declines to $2.5 billion from $7.5 billion.
2. Trade deficit widens to $66.9 billion – reason is due to higher imports.
External debt rises 13 per cent in first-half
1. Rupee appreciation led to rise in external debt by $6.3 billion or 18.8% of
the total increase.
2. The total India’s external debt is $295.8 billion – mainly to due to overseas
borrowings by the Corporates and also due to appreciation of the rupee
vis-à-vis other currencies.
Pranab chairs first FSDC meeting

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 1. Union Finance Minister Pranab Mukherjee on Friday chaired the first meeting of the
Financial Stability and Development Council (FSDC) formed to sort out inter-
regulatory issues. FSDC includes Reserve Bank of India Governor, Finance Secretary
and heads of regulators like Securities and Exchange Board of India (SEBI) and
Insurance Regulatory and Development Authority (IRDA).
2. In his Budget speech last year, Mr. Mukherjee had proposed to set up the FSDC to deal
with financial stability, financial sector development, inter-regulatory coordination,
financial literacy, financial inclusion and macro-prudential supervision of the economy,
including the functioning of large financial conglomerates. The Council is also expected
to coordinate the country's international interface with financial sector bodies such as
the Financial Action Task Force (FATF) and Financial Stability Board (FSB).
IOB to tap overseas markets through MTN
1. Indian Overseas Bank (IOB) is planning to tap overseas markets through the issue of
Medium Term Notes (MTN).
2. Several leading banks, including State Bank of India, have adopted the MTN route, an
instrument to ensure constant cash flows and allowing the financial institutions to
design their debt issuances in line with the financing needs of their overseas branches.
IOB will raise funds to the tune of $250-500 million through the MTN route.
Aviation sector growth slowing towards normal levels: IATA
1. Indicating a gear shift in recovery cycle in the face of a strong year end, the growth in
aviation is slowing towards normal levels and more hard work will be needed next year
to achieve sustainable levels of profitability.
2. This was the conclusion drawn by the International Air Transport Association (IATA) in
its international scheduled traffic results for November which suggested a 0.8 per cent
fall in air travel and a dip of 1.1 per cent in freight business.
3. While passenger traffic registered a year-on-year growth of 8.2 per cent, the air freight
recorded a 5.4 per cent increase.
4. According to IATA, the slowdown this year was partially skewed because of the
exceptionally rapid rise in traffic volumes recorded during the fourth quarter of 2009.
5. It does not signal a negative trend as the sector is still expanding at annualised rates
between 5 per cent and 6 per cent. According to Giovanni Bisignani, IATA Director-
General and CEO, the relative weakness in developed markets is being offset by the
momentum of economic expansion in developing markets.
Tender areca nut price touches new high
1. Tender areca nut prices are spiralling in the district owing to scanty production and rise
in demand.
2. The price was Rs.50-51 a kg at the Meenangadi market on Thursday against Rs.36
weeks ago. (The price was Rs.41-43 during the corresponding period last year).
3. The supply of tender areca nut had not been able to match demand this season owing
to a sharp decline in production.
4. Tender areca nut is used in making red areca nut, a main ingredient in ‘gutka' and
‘pan.'
5. The crop on many plantations were affected by yellow leaf disease this time. Some
plantations had also reported bud rot and nut rot diseases also.
6. Many farmers had turned to areca nut cultivation after pepper cultivation turned out to
be a loss for them.
Norms tightened for investment by banks in NCDs
1. Tightening investment norms, the Reserve Bank of India on Friday directed banks not to
invest in non-convertible debenture (NCD) of corporates unless they disclose the
purpose for which the funds are being raised.
2. Non-convertible debentures mean a debt instrument issued by a corporate (including
NBFCs) with original or initial maturity up to one year and issued by way of private
placement.

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