Mentor july 2017 national india launches South-Asia satellite

Infrastructure Investment Trusts

The initial public offering (IPO) for IRB InvIT, India’s first infrastructure investment trust fund will shortly be opened for subscription. Sponsored by road developer IRB Infrastructure Developers Ltd., the trust aims to raise up to rs 4,035 crore.

What are InvITs?

InvITs are similar to mutual funds. While mutual funds provide an opportunity to invest in equity stocks, an InvIT allows one to invest in infrastructure projects such as road and power. InvITs are registered as trusts with SEBI and there are four parties — trustee, sponsors, investment manager and project manager. As per present regulations, InvIT investments are not open for small and retail investors. The minimum application size for InvIT units is ₹10 lakh. The main investors could be foreign institutional investors, insurance and pension funds and domestic institutional investors (like mutual funds, banks) and also super-rich individuals.

Significance of InvITs:

Infrastructure projects suffer from lack of availability of long-term capital and have depended on bank finance which typically has a short tenure. InvITs are designed to attract low-cost, long term capital and the underlying focus is to reduce the funding pressure on the banking system as well as generating fresh equity capital for infrastructure projects. InvITs allow developers of infrastructure assets to monetise their assets by pooling multiple projects under a single entity (trust structure).

How do InvITs work?

InvITs raise funds from a large number of investors and directly invest in infrastructure projects or through a special purpose vehicle. Two types of InvITs have been allowed: one, which invests in completed and revenue generation infrastructure projects; the other, which has the flexibility to invest in completed or under-construction projects. InvITs which invest in completed projects take the route of public offer of its units, while those investing in under construction projects take the route of private placement of units. Both forms are required to be listed on stock exchanges.

Sebi finalizes norms for listing of green bonds

Regulator Sebi has finalized norms for issuance and listing of green bonds, which will help in raising funds from capital markets for investment in the renewable energy space. The rules have been finalised by the Securities and Exchange Board of India (Sebi) after taking into account inputs from the finance and environment ministries, as also from the Ministry of New and Renewable Energy (MNRE).

What are Green bonds?

Green bonds are like any other debt instrument but the funds raised from such a bond sale are used exclusively for renewable energy projects.

Why are green bonds important for India?

India has embarked on an ambitious target of building 175 gigawatt of renewable energy capacity by 2022. This requires a massive $200 billion in funding. However, higher interest rates and unattractive terms under which debt is available in India raise the cost of renewable energy by 24-32% compared to the U.S. and Europe. Budget allocations have also been insufficient and the market is also very limited. Therefore, green bonds help raise funds for the projects in this sector.

What are its benefits?

Green bonds enhances an issuer’s reputation, as it helps in showcasing their commitment to wards sustainable development. It also provides issuers access to specific set of global investors who invest only in green ventures. With an increasing focus of foreign investors towards green investments, it could also help in reducing the cost of capital.

DIPP & WIPO to set up Technology and Innovation Support Centers

The Department of Industrial Policy and Promotion (DIPP) and World Intellectual Property Organization (WIPO) have signed an agreement to establish Technology and Innovation Support Centers (TISC).

What you need to know about TISC?

These centres will be set up under WIPO’s Technology and Innovation Support Centers (TISC) program. The programme provides innovators in developing countries with access to locally based, high quality technology information and related services, helping them to exploit their innovative potential and to create, protect, and manage their intellectual property (IP) rights.

Services offered by TISCs may include:

Access to online patent and non-patent (scientific and technical) resources and IP-related publications. Assistance in searching and retrieving technology information. Training in database search. On-demand searches (novelty, state-of-the-art and infringement). Monitoring technology and competitors. Basic information on industrial property laws, management and strategy, and technology commercialization and marketing.

Key facts:

The Cell for IPR Promotion and Management (CIPAM) is designated as the National Focal point for the TISC national network. As the national focal point, CIPAM will identify potential host institutions, assess their capacities and support them in joining the TISC project. CIPAM will also act as the main intermediary between WIPO and TISC host institutions and coordinate all the activities of the national TISC network.

About WIPO:

The World Intellectual Property Organization (WIPO) is one of the 17 specialized agencies of the United Nations.

It was created in 1967 “to encourage creative activity, to promote the protection of intellectual property throughout the world.” It has currently 188 member states, administers 26 international treaties, and is headquartered in Geneva, Switzerland. Non-members are the states of Marshall Islands, Federated States of Micronesia, Nauru, Palau, Solomon Islands, South Sudan and Timor-Leste. Palestine has observer status. India is a member of WIPO and party to several treaties administered by WIPO.
Anti-dumping duty imposed on clear float glass imports from Iran

The Finance Ministry has imposed definitive anti-dumping duty on ‘clear float glass’ imports from Iran. The definitive anti-dumping duty, imposed by the Revenue Department and which will be valid for five years, ranged from ‘nil’ to $55.59 per tonne, depending on the producer and exporter. Clear float glass, which is a superior quality of glass, is used in the construction, refrigeration, mirror and solar energy industries.

What you need to know about Anti-dumping duty?

Anti dumping is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect. Purpose: The purpose of anti dumping duty is to rectify the trade distortive effect of dumping and re-establish fair trade.

Is it permitted? The use of anti dumping measure as an instrument of fair competition is permitted by the WTO. It provides relief to the domestic industry against the injury caused by dumping. It is levied on distrustfully low-priced imports, so as to protect the domestic manufacturers.

Need for anti-dumping duty: Dumping is an unfair trade practice of exporting goods to another country at a price lesser than what is paid in the exporting nation or their normal production cost, thereby distorting international trade and causing injury to the domestic manufacturers of the goods in the importing country.

INTERNATIONAL

Nepal Prime Minister Pushpa Kamal Dahal ‘Prachanda’ Resigns

Nepal Prime Minister Pushpa Kamal Dahal ‘Prachanda’ has resigned from his post. He was elected as the 39th Prime Minister of Nepal. Prachanda has stepped down honouring a power sharing agreement entered by him with the ruling partner Nepali Congress on August 3, 2016. As per the agreement, Dahal, who is the Chairman of CPN (Maoist Centre) was to have a brief stint of 9 months and will be succeeded by Nepali Congress president Sher Bahadur Deuba. It was agreed that the government will be run on a rotational basis until elections to Parliament are held in February 2018. Prachanda’s tenure has helped to ease the hostile relationship between the Government of Nepal and Madhesis. Both Prachanda and Sher Bahadur Deuba are committed to amend the constitution to accommodate the aspirations of Madhesi people who have been protesting since 2015 against those constitutional provisions that excludes them from the power structure.

First local level polls were held in Nepal on May 14 which is a first in two decades. After 1997, local level elections could not be held in Nepal due to the decade-long Maoist insurgency and ensuing political instability. Nepal has seen around 25 prime ministers in the last 25 years. Nepal is also recovering from the devastating earthquake which killed over 9,000 people. In addition, it is also plagued by the protests of the minority ethnic Madhesis who demand amendment of the Nepali Constitution.
Hassan Rouhani Wins Iran’s Presidential Election

Hassan Rouhani has been re-elected as the President of Iran. He was elected as president for his first term in 2013. He won 2013 elections by pledging to end Iran’s isolation and improve civil rights at home. Rouhani was born in Semnan province on November 12, 1948. He is a graduate of University of Tehran and did his PhD from Scotland’s Glasgow Caledonian University. The 68 year old Rouhani is a lawyer, academic and a former diplomat. Rouhani has won his second term by presenting himself as the candidate of change and social freedoms that ended many sanctions and a 13 year standoff over Iran’s nuclear programme. He has held various key positions like the key defence portfolios during the 1980 -88 Iran-Iraq war. He had spent 16 years as secretary of the Supreme National Security Council, which is Iran’s top security post. Rouhani consistently worked to rebuild Irans’ relations with the West. He also became the first Iranian leader to speak with the President of United States when Barack Obama phoned in September 2013.

India and Palestine Inks 5 Agreements

India and Palestine has signed five agreements during the 4 day visit of Palestinian President Mahmoud Abbas to India. This is Abbas’s fifth visit to India and the third state visit after his earlier visits in 2008 and 2012. These 5 MoUs signed were on visa exemption for diplomatic passport holder, agriculture cooperation, cooperation in field of IT & Electronics, health sector and cooperation in the field of youth affairs and sports.

Salient Highlights

India has called for early resumption of talks between Palestine and Israel and hoped to see a sovereign, independent, united and viable Palestine, co-existing peacefully with Israel. Palestine for its part has thanked India for supporting it in various international forums. Palestine also hopes that India can play a vital role in Middle East Peace process. The Palestinian President also condemned terrorism in all its forms and manifestations and called for regional and international efforts to fight the menace. India is assisting developmental projects in Palestine. It has been contributing to material & technical assistance and is building a techno Park in Ramallah at the cost of $12 million. Both the countries also called for enhancing cultural exchanges between the two sides. India has sought Palestine’s participation in the International Yoga Day to be observed next month.

India and Palestine enjoy a long standing friendship. In 1947, India registered its vote against he partition of Palestine at the United Nations General Assembly. In 1974, India became the first Non-Arab State to recognize PLO as sole and legitimate representative of the people of Palestine. In 2012, India co-sponsored a resolution that resulted in up-gradation of the status of Palestine to a “non-member state‟. In 2014, India voted in favor of Palestine at the UN Human Rights Council. In 2015, India supported installation of Palestinian flag at the UN Premises similar to the flags of the member states.
Outcomes of OBOR Summit

Belt and Road Forum (BRF) is a gathering of world leaders from across the globe, organized by China to showcase its plans to build a network of trade routes under the One Belt, One Road (OBOR) initiative. As of now, 68 countries and international organisations have signed belt and road agreements with China. China has stated that the Belt and Road initiative is an open and inclusive platform to explore and co-develop the China-led blueprint of reviving the Silk Road. India, however, has boycotted the summit owing to sovereignty concerns related to the China-Pakistan Economic Corridor (CPEC). Unlike India, none of the other countries have sovereignty related issues with OBOR initiative.

Outcomes

The two-day Belt and Road Forum identified and agreed on 270 deliverable goals of Belt and Road Initiative.The Forum resulted in signing of a joint communique by 30 heads of state that promised to implement plans for cooperation in trade and infrastructure programs across Asia, Europe and Africa. However, the forum ended with only promises of joint action by participating countries and did not result in establishment of an institutional framework for implementing the planned construction program. The Signatories to the joint communique also pledged their support for promoting a rules-based, open and multilateral trading system with the World Trade Organisation at its core. China has assured the participating countries that it would not attempt to push a country’s political ideologies and systems onto another country during the implementation of the Belt and Road Initiative. China has taken the first step to institutionalise the Belt and Road Forum (BRF) by announcing that the next edition of the BRF would be held in Beijing in 2019 indicating that China will continue to control the Belt and Road Initiative.

Infrastructure Deals

Although India skipped the initiative, 6 of its neighbours namely Pakistan, Sri Lanka, Nepal, Bangladesh, Myanmar and Afghanistan attended the summit and signed 20 infrastructure deals with China at the Belt and Road Forum (BRF). They have also sought China’s financial help for advancing infrastructure, power, banking and finance sectors.

OBOR is an ambitious China’s ambitious development strategy and framework that aims to boost its connectivity and trade that will that will connect Asia, Africa, the Middle East and Europe. It was proposed by Chinese President Xi Jinping in 2013. It comprises two components viz. the Silk Road Economic Belt and the 21st Century Maritime Silk Road. OBOR initiative is part of China’s revived 21st century Silk Road diplomacy that seeks to push it to take a bigger role in global affairs as a major global power. It is basically investment and trade promotion scheme aiming to deepen economic connections between China and rest of the world.
Edouard Philippe appointed as Prime Minister of France

French President Emmanuel Macron has appointed Edouard Philippe as the new prime minister of France. At 46, Edouard Philippe would be the second-youngest Prime Minister of France after Laurent Fabius (1984 to 1986), who was 37 at the time of appointment. Philippe is the Mayor of the port city Le Havre since 2010 and is a member of the Les Républicains party . Edouard Philippe appointment as the new Prime Minister comes at the backdrop of Emmanuel Macron’s plans to draw support from the conservative opposition and appeal to rightwing voters in elections for the National Assembly to be held next month. Although, Emmanuel Macron has won with 66% of the vote, his party En Marche!, which was founded only last year has never held a single National Assembly seat. Macron needs to have a majority in the National Assembly to have the mandate to push his legislative agenda through.

China, ASEAN Countries Agree on Framework for South China Sea Code of Conduct

China and the 10 member of the ASEAN grouping have agreed to a framework of a legally binding code of conduct aimed at preventing disputes in the strategic South China Sea. Though the draft of the framework has been finalised, no details about the text of the framework agreement has been released. Also, no date has been given on which the full code of conduct is set to be adopted by the parties. However, all the parties have agreed to continue to constructively advance the negotiations and work towards the early conclusion of the code of conduct.

China and the ASEAN members had committed to sign a code of conduct around 15 years ago. But the pace of the negotiations was slow as China claimed the South China in its entirety. ASEAN members like Philippines, Malaysia, Vietnam and Brunei also maintain claims in the South China Sea. In the absence of the code of conduct, each country followed a separate document called the Declaration on the Conduct of Parties in the South China Sea (DOC), which has a provision committing parties to explore ways to build trust and confidence based on the principles of equality and mutual respect. Last year, China was enraged by the Permanent Court of Arbitration (PCA) in Hague, the Netherlands, which in its ruling has rejected China’s claims to economic rights across large swathes of South China Sea in a case brought by the Philippines.

10 ASEAN Members: Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. South China Sea South China Sea is part of Pacific Ocean spreading an area of some 35 lakh square km with eight littoral countries / territories viz. China, Taiwan, Philippines, Malaysia, Indonesia, Brunei, Singapore and Vietnam. It is strategically located in the international shipping route that sees the passage of world’s half of the merchant ships. The sea is rich in energy reserves including petroleum, mineral and fishing resources. It is made of some 200 tiny islands, coral reefs, shoals, sandbanks etc. grouped into three archipelagos of Spratlys, Paracels and Pratas. The Macclesfield Bank and Scarborough Shoal are also part of South China Sea. Several countries have made competing territorial claims over the South China Sea. Such disputes have been regarded as Asia’s most potentially dangerous point of conflict.

South Korea Election: Moon Jae-in elected as President

Moon Jae-in has been declared winner in South Korea’s presidential election by that country’s National Election Commission. Moon, the Democratic Party’s candidate has won with 41.08% of votes. Moon will replace the ousted President Park Geun-hye, who was ejected from office in March after a corruption scandal for which she’s awaiting trial. Moon narrowly lost to Park in 2012 election. Park was South Korea’s first female President who has been impeached in a corruption scandal. Moon is a 64 year old former human rights lawyer and a liberal who favors a more open policy toward North Korea. He is likely to overhaul South Korea’s policy on North Korea. Unlike his predecessors, Moon favors engagement with North Korea and has challenged the deployment of US missile defense system in South Korea. Moon is a strong proponent of the “Sunshine Policy”, which aimed to improve relations between the two Koreas from 1998 to 2008.

India- Indonesia Co-Ordinated Patrol Commences

The 29th India–Indonesia CORPAT has commenced at Port Blair under the aegis of Andaman and Nicobar Command. The bilateral exercise is scheduled to be held from 9th to 25th May. The Indonesian Naval Ship KRI Sutedi Senoputra has arrived to take part in the 29th series of IND–INDO CORPAT. An Indonesian Maritime Patrol Aircraft has also arrived with the Indonesian Naval delegation. Defence relations between India and Indonesia are growing steadily with regular joint activities and interactions between the Armed Forces of the two countries. The bilateral exercise aims to enhance mutual understanding and inter–operability between the two navies. It also reflects the shared concerns between the two navies for a peaceful Indian Ocean for the benefit of international community.

CORPAT CORPAT is a bilateral maritime exercise held between India and Indonesia under thebroad ambit of strategic partnership. Both countries have been carrying out maritime exercise twice a year since 2002. The CORPAT exercise between the two navies carries search and rescue operations, institutes measures for vessels indulged in unlawful activities as well as control pollution. The main aim of CORPAT is to keep the vital part of the Indian Ocean Region (IOR) safe and secure for commercial shipping, International trade and legitimate marine activities. The CORPAT has helped to strengthened understanding and interoperability between the two navies and also has promoted net maritime security in the region.
India & Japan to Strengthen Defence Cooperation

India and Japan has decided to strengthen their military cooperation and hopes to pursue a strategic partnership for ensuring regional peace and stability. The visit of Defence minister Arun Jaitley to Tokyo comes at the backdrop of rising tension in the region such as territorial rows over the South China Sea and nuclear and missile threats from North Korea. The purpose of visit of Arun Jaitley to Tokyo was to attend an annual meeting of the Asian Development Bank. India and Japan have been increasing their defence cooperation amid China’s increasing assertiveness in the region. India has welcomed the conduct of a planned trilateral naval exercise among the US, India and Japan in July as a means to strengthen cooperation in the Asia-Pacific. The Malabar trilateral exercise between Japan, the U.S. and India are slated to be held in the Bay of Bengal from July 10. Japan would send its helicopter carrier Izumo which is its largest warship to take part in the exercise.

India elected as President of UN-Habitat

India has been unanimously elected as the President of the UN-Habitat. UN-Habitat, an organ of the United Nations’ Organisation (UNO) reports to the United Nations General Assembly. UN-Habitat promotes socially and environmentally sustainable human settlements across the world. India has been elected as the President of UN-Habitat after a gap of 10 years. This is only the third time that India has been elected as the President of UN-Habitat after 2007 and 1988. The UN-Habitat was established in 1978. The Governing Council of UN-Habitat is an inter-governmental policy making and decision making body that aims to promote integral and comprehensive approach to human settlements, assist the countries and regions in addressing human settlement problems and strengthen cooperation among countries over the issue of human settlement. Subsequent to the election, Union Minister of Housing & Urban Poverty Alleviation M.Venkaiah Naidu will preside over the deliberations of the Governing Council of UN-Habitat for the next two years. Accordingly he will chair the 26th Meeting of 58 member Governing Council of UN-Habitat in Nairobi, Kenya. The theme of the meeting is “Opportunities for effective implementation of the New Urban Agenda” He will also chair the Bureau Meeting of the Asia-Pacific Ministers’ Conference on Housing and Urban Development in Nairobi. The New Urban Agenda which was adopted by the world community at Quito, Ecuador would focus on inclusive, sustainable and adequate housing for a better future and sustainable urbanization and integrated human settlements.

UN-Habitat UN-Habitat, also known as United Nations Human Settlements Program is a UN agency responsible for sustainable urban development and human settlements. It was established in 1978 and has its headquarters in the UN Office at Nairobi, Kenya. It is mandated by the United Nations General Assembly to promote socially and environmentally sustainable towns and cities with the goal of providing adequate shelter for all. It is also a member of UNDP. UN-Habitat works in more than 70 countries in five continents focusing on seven areas: Urban Legislation, Land and Governance; Urban Planning and Design; Urban Economy; Urban Basic Services; Housing and Slum Upgrading; Risk Reduction and Rehabilitation; Urban Research and Capacity Development.