Saturday, July 28, 2012

NATIONAL NEWS

• As monsoon remains deficient, plans on to give diesel subsidy to farmers
  • The first meeting of the Empowered Group of Ministers on Drought, scheduled next week, will take a decision on extending diesel subsidy to farmers in the northwest region where monsoon is deficient by 40%;
  • With low levels in reservoirs, farmers in Punjab, Haryana and western Uttar Pradesh are having to use excessive diesel and power to pump ground water to keep their paddy crop alive. After the deficient rains of 2009, the Centre had given diesel subsidy to Bihar and Tamil Nadu;
  • The meeting will look at southwest monsoon, kharif sowing, foodgrains stocks, prices and demands from States to mitigate the effects of deficient rain. The meeting may also consider rescheduling loans by farmers in distressed areas.
• Where is the gas to implement the Gujarat High Court order?
  • The Gujarat High Court’s order regarding natural gas allocation for compulsory usage in all vehicles in the State has been hailed by environmental activists and the State Government alike, but the fact still remains that India simply does not have enough gas to cope with higher demand;
  • In directions issued on a writ petition filed by the Gujarat Rajya Autorickshaw Federation, the Gujarat High Court directed the State Government to compel owners of all vehicles registered in the State to start using natural gas — even if it be at higher prices — within a year. In an order on another petition by Dhrangadhra Prakruti Mandal (DPM), the court directed the Central Government to supply compressed natural gas (CNG) to the city of Ahmedabad at the same rate at which it is supplied in Delhi and Mumbai;
  • Gujarat Energy Minister Saurabh Patel welcomed the order against the Central Government’s discriminatory allocation and pricing and estimated that CNG prices in Ahmedabad would come down by about Rs.10 per kg from the present Rs.53 a kg if the order is followed. In Delhi, CNG costs Rs.38-40 per kg and Rs.34-35 per kg in Mumbai;
  • With domestic gas production falling short, the fertiliser and power sectors — the biggest users — have already been feeling the pinch and are likely to resist any move to shift additional allocation to city distribution networks for vehicular usage;
  • If imported gas is used instead, the economics could end up seriously unviable for vehicle users. There is plenty of gas available in the world market, but it’s over three times the cost of domestic gas. Further, even if you were to import, it would take 24-36 months for new re-gasification facilities to be set up as there are too few facilities at the moment.

INTERNATIONAL NEWS

• India bans US-sanctioned ships from its waters
  • In a development that is likely to affect crude oil supplies to the country, India has banned U.S.-sanctioned Iranian ships from entering its waters
  • After the European Union’s sanctions came into effect on July 1, the Centre allowed few oil companies to import crude from Iran in ships arranged by Tehran and on a Cost, Insurance, Freight (CIF) basis. It was left to Tehran to arrange for ships and insurance. However, permission was revoked within days;
  • Crude imports from Iran are possible only if the state insurers, led by General Insurance Corporation (GIC), provide cover for domestic ships carrying Iranian crude. However, the matter of sovereign guarantee for ships is still pending with the government;
  • GIC has agreed to provide domestic ships with $50-million cover for hull and machinery and a similar one for protection and indemnity, but this has been delayed as the company has not got approval from the insurance regulator.
• The escalating conflict in Syria, which is spiralling border tensions with Turkey, has reached a decisive stage with government forces and the armed opposition locked in a high intensity battle over control of the city of Aleppo, the country’s largest
• John Atta Mills, president of Ghana, died this week at a military hospital in the capital, Accra, five months short of finishing his first term in office. He helped create a very stable atmosphere in Ghana and Ghana also became an oil exporter during his time

EDITORIALS, OPINIONS & COLUMNS

• Read this article about Timothy Ray Brown who is believed to be the only man cured of AIDS
• Read this editorial on the new initiative to provide books to the blind and disabled which has been blocked by the US and EU
• Read this article on the protests in Russia