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Need to clean up banking system : Raghuram Rajan
- The RBI Governor stressed the need for sustainable growth in the country while keeping the inflation rate low.
- He stressed that extremely fast growth will lead to higher inflation , higher deficits and lower growth in the subsequent years.
- With the amount of bad loans rising , he stressed on cleaning up the banking system of distressed assets instead of softening RBI ‘s stance on bad loans.
- The RBI chief has been facing constant criticism over the past few weeks from various sectors with regards to him refusing to lower the interest rate.
India cannot reinvent language of liability : GE Chief
- Unless an agreement is reached with the US on “common language” on the civil nuclear liability law , General Electric will not invest in India’s nuclear energy industry, CEO Jeff Immelt said here on Monday.
- He stressed on the need for India to follow the rules that rest of the world abide by in case of civil nuclear liability.
- General Electric is the largest infrastructure company in the world and any hesitation on their part will seriously impact PM Modi’s plan of modernising India.
- The GE chief also called for reducing subsidies in the electricity sector and let prices be determined by market rates to removes lingering doubts of investment in India’s energy sector.
- Expressing optimism , he stated that India represented a huge opportunity that remained untapped.
India calls back Ambassador to Nepal
- Deeply concerned over the continuing violence in Nepal’s border regions with India , the Ministry of External Affairs called the Indian Ambassador to Nepal back to Delhi for consultations.
- The clashes between the Madhesi protesters and the Nepali forces has caused Indian transporters to be stuck at the Biratnagar integrated border post .
- The clashes are due to certain clauses in the Nepali constitution that was promulgated on Sunday that were unfavourable to the Madhesi groups living near the border.
- The MEA stated that it was extremely concerned over the tension in the Nepali side of the border and the possibility of its spillover of violence to neighbouring regions of Bihar which is slated to undergo elections very soon.
- Nepali Ambassador to India termed the allegations as completely surprising and wondered as to why India did not express its reservations earlier and that the constitution was only the beginning and any further differences would soon be resolved.
Natural gas and oil production increase
- According to the Oil Ministry , production of natural gas has increased by 3.7% and crude oil production has increased by 5.6%.
- This increase in the production of natural gas is the first increase in almost 5 years.
- Increase in gas production to 2,836.5 million cubic meters is due to ONGC’s fields in AP where production jump seven fold and in Tripura where production increased 1.5 times.
- ONGC’s eastern offshore fields also registered an increase from 1.3 mcm in August 2014 to 21.3 mcm last month.
- Domestic crude oil production jumped from 3 million tonnes in August 2014 to 3.2 million tonnes last month.Here again, ONGC’s western offshore fields and Cairn India’s Rajasthan fields increased production .
- ONGC , Oil India and Cairn India requested the petroleum minister Dharmendra Pradhan to remove the cess they pay on crude oil which they produce.
NTPC to start work in Jharkand coal mine
- National Thermal Power Corporation stated that it will soon start production from Pakri-Barwadih coal block in Jharkand this year with production from three more coal blocks commencing over the next two years.
- In March, NTPC was re-allotted five coal blocks, including Chatti-Bariatu, Chatti-Bariatu (South) and Kerandari in Jharkhand; Dulanga in Odisha and Talaipalli in Chhattisgarh.
- The PSU had earlier said it would soon appoint a mine developer and operator for its Pakri-Barwadih coal block and Kerandari coal block.
- Following the SC ‘s cancellation of mining allotments in wake of the coal scam , this is the first instance where production from a new field has started.
GK QUESTIONS FOR THE DAY
1. What is the World’s largest functioning Oil Refinery?
(1) Reliance Refinery in Jamnagar, Gujarat
(2) IOC Refinery in Digboi, Assam
(3) HPCL Mumbai Refinery
(4) Paraguana Refinery, Venezuela
(5) Exxon Mobil Refinery, Singapore
Answer: Reliance Refinery in Jamnagar, Gujarat is the world’s largest functioning Oil Refinery.
2. Which of the following countries facing debt crises was recently under the threat of exiting from the Eurozone ?
Answer: Greece recently faced debt crisis.
3. The main purpose of Panchayati Raj is –
(A) To create employment
(B) To make people politically conscious
(C) To increase agriculture production
(D) To make people participate in developmental administration
Answer: Panchayati Raj was introduced to increase participation of the locals in developmental administration.
4. Which Article of the constitutions empower a state government to borrow written the territory of India?
(A) Article – 291
(B) Article – 292
(C) Article – 293
(D) Article – 294
Answer: Article 293. For more info click here.
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