INTERNATIONAL

Reactor restart in Japan: Japan approved the full resumption of commercial operations of an atomic reactor for the first time since the March 11 quake and tsunami sparked the Fukushima nuclear accident. Hokkaido Electric Power Co. restarted commercial operations at the Tomari plant's reactor number three Almost three-quarters of Japan's 54 reactors are now offline, mostly for regular safety checks, and many host communities have been reluctant to approve their restarts as anti-nuclear sentiment has grown in the quake-prone nation after Fukushima.

India Signs DTAA with Georgia: The Government of India signed an Agreement for Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital (DTAA) with Government of Georgia. The Agreement was signed by Mr. M. C. Joshi, Chairman, Central Board of Direct Taxes (CBDT) on behalf of the Government of India and Mr. Zurab Katchkatchishvili, Ambassador of Georgia to India on behalf of the Government of Georgia. The DTAA provides that business profits will be taxable in the source state if the enterprises constitute a Permanent Establishment (PE) in the source state. The Agreement incorporates provisions for effective exchange of information between tax authorities of the two countries in line with best international standards, including exchange of banking information and supplying of information without recourse to domestic interest. The Agreement also provides for sharing of information to other agencies with the consent of supplying state. The Agreement will provide tax stability to the residents of India and Georgia and will facilitate mutual economic cooperation between the two countries. It will also stimulate the flow of investment, technology and services between India and Georgia.

UGC-British Council sign MoU under second phase of UK India education and Research Initiative (UKIERI): Prof. Ved Prakash Chairman of University Grants Commission(UGC) and Rob Lynes Director of British Council (on behalf of UK UKIERI partners) formally signed a Memorandum of Understanding (MoU) to support all activities and programmes agreed under Phase Two of the UKIERI programme relating to the University sector across the four strands. This MoU aims to work with UGC for implementation of strand programmes and activities in the Higher Education Institutions in India. This MoU is in continuation to the MoU signed between Ministry of Human Resource Development of the Government of India and the Department for Business, Innovation and Skills on behalf of the Government and the Devolved Administrations of the UK including Northern Ireland, which sets out the framework for UKIERI from 2011-2016.

Teachers Exchange Programme with United States: The teachers from all over India from 6th to 12th grade are eligible for the Fullbright Teacher Exchange programme conducted under the auspices of United States India Educational Foundation (USIEF). There is no financial implication for the school from which the teacher is selected. Indian teacher selected for this exchange will have the opportunity to work within a U.S. school system and experience U.S. society and culture.

New Ties between India and Bangladesh: India-Bangladesh ties have received a significant boost after US President Barack Obama asked India to "look east". The most interesting development will be the agreement to open Chittagong port to northeaster India. This issue of access will be addressed as the countries resolve disputes over the Feni River. The Feni flows through Tripura and Bangladesh, and the prime minister are expected to resolved the long pending issue of sharing its waters and building a bridge on the border. The bridge will open Chittagong one of the best ports in eastern South Asia to northeastern India, said venna Sikri, former Indian high commissioner to Bangladesh. Once the bridge is built, Tripura and Assam will be just two and a half hours away from Chittagong. India and Bangladesh are connected by almost 54 rivers. Bangladesh will ask for a water-sharing agreement that covers all the rivers since it will help ensure security and safety of both nations.

Sahara Power, Korean co to set up 6,000 MW plants: Sahara India Power Corporation announced a partnership with Korea East-West Power Co. a Korean government company, to set up power plants with combined capacity of up to 6,000 mega watt. The agreement signed between the two companies allows them to jointly participate in tariff-based bidding for ultra-mega power projects (UMPPs) and other opportunities in India.

ECONOMY

Rangaran Wants Plan Panel to Shed Funds Allocation Role: The Planning Commission may lose its power to decide allocations to central ministries if the government accepts recommendations of a high-level expert panel. The panel has sought abolition of the present system of classifying government expenditure into Plan and non-Plan, saying allocations should be the primary domain of the finance ministry. The panel, headed by C Rangarajan, chairman of the Economic Advisory Council to the Prime Minister, was set up by the Planning Commission last year to suggest measures for efficient management of public expenditure.

India Losing Rs. 18k cr. a year Due to FMD in Cattle: ICAR: India is losing a whopping Rs 18,000 crore annually due to the dreaded foot and mouth disease (FMD) in cattle and livestock, a senior official of the Indian Council of Agricultural Research (ICAR) said. "According to the latest research conducted by ICAR on FMD in livestock, the country is loosing directly Rs 18,000 crore per annum." The losses are because of lesser milk production due to FMD in animals and the meat of the infected animals is not good for consumption.

4% Growth Target for Farms Sector in 12th Plan: The Planning Commission has set a 4% growth target for agriculture and related sectors for 12th Plan. Planning Commission Member and Steering Committee Chairman Abhijit Sen said.

Sebi imposes 150 fee on new MF investments: Market regulator Sebi said new investors will now have to pay an extra Rs 150 for investment of Rs 10,000 and above in mutual funds, while the charge will be Rs 100 for existing investors. No charge can be made for investments below Rs 10,000. "As an incentive to attract new investors, the distributor may be paid Rs 150 as transaction charge for a first time investor in mutual fund.

Improvement in industrial production in 2011: The rate of growth of industrial production measured in terms of Index of Industrial Production (IIP), with 2004-05 as the base, has been gradually increasing from 2.5 % in 2008-09 to 5.3% in 2009-10 and 8.2% in 2010-11. The growth rate of exports valued in rupee terms during this period was 28.19 % in 2008-09, 0.6% in 2009-10 and 32.3% in 2010-11. The overall investment measured in terms of gross capital formation has continuously been higher than gross domestic savings indicating a positive contribution of capital inflows. The major focus areas for improving the industrial climate during the 11th Plan have been the creation of world class infrastructure and devising regulatory mechanism to reduce transaction costs; promotion and facilitation of industrial investment including the foreign direct investment; improvement in business environment; development of industrial infrastructure through public private initiatives; removal of regional industrial imbalances; and development of industry relevant skills. The Union Budget 2011-12, has clearly indicated that for sustained growth of GDP and productive employment for younger generation, it is imperative that the growth in manufacturing sector picks up. Government is considering a manufacturing policy, which will bring down the compliance burden on the industry through self-regulation and help make Indian industry globally competitive. This will improve the growth rates for manufacturing and industry

Dish TV set to Launch CAM Technology: Dish TV, India's largest direct-to-home (DTH) operator, is set to launch Conditional Access Module (CAM), a device that will enable consumers with set-top boxes of other DTH service providers to switch to Dish TV's feed of television channels. Popular in Europe, CAM is a small gadget that enables consumers to shift from one DTH service provider to another without buying a new set-top box. "We expect inactive DTH households in metros and smaller cities which are not happy with their direct-to-home connections to buy our product and switch to Dish TV signals," said Salil Kapoor, COO, and Dish TV.

PSU's may not Get Bank Licence: The government is not keen on state-run firms securing bank licences under the proposed new banking licence policy. Currently, there are 21 public-sector banks besides five subsidiaries of the State Bank of India. The government has so far supported merger in public sector banks but has maintained that any merger proposal should come from the banks themselves. The RBI is expected to make the norms for new licences public soon. Several state-owned firms, including Power Finance Corporation (PFC) and LIC Housing Finance have shown interest in opening new banks under the proposed policy.