Game Changers for MSME Sector in the 12th Five Year Plan

The recommendation of the Working Group on MSMEs Growth for 12^th Five Year Plan aims at giving a new thrust to the MSME sector. The working Group has identified the following Game Changers, implementation of which will give a boost to the MSME sector in the Global Market.

Finance

• Operationalization of SME exchanges for enabling access to Equity Finance.

Technology

• Scheme for acquisition and up-gradation of technology.

Infrastructure

• Developing clusters of excellence.

• Setting up of 100 Tool Rooms and PPDCs.

Marketing

• Procurement policy for Goods/services from MSEs by the Government Deptts. and Central PSUs.

• B2B International portal.

• Enabling global footprints of MSMEs.

• Leveraging Defence Offset Policies in favour of MSMEs.

 Skill Development

• Revamped Skill Development & Capacity Building Programme.

• Encouraging young/ first generation entrepreneurs by upscaling  PMEGP and other programmes.

Institutional Structure

• Strengthening of Institutions – MSME-DIs, EDIs and KVI Institutions.

• Application of E-tools in promotional and regulatory matters for facilitating easy entry.

• Real time Statistical & Policy Analysis through strengthening of Database.

The Working Group recommends focused efforts for time-bound implementation of the Game Changers.

Umbrella Schemes

The Working Group recommends 6 umbrella schemes – (i) Credit and Finance, (ii) Technology and Innovation, (iii) Infrastructure, (iv) Marketing, (v) Skill and Entrepreneurship Development, (vi) Institutional Structure. The schemes/proposals mentioned under each would be treated as components of the Umbrella Scheme. The advantages of such an approach are manifold. There would be flexibility of utilization of funds under each Umbrella Scheme. Funds can be transferred to components which are doing well from those experiencing tardy implementation. The implementation of different components would be cost-effective and time saving since the inter-linkages between different components can be addressed simultaneously. For example, the land procurement and construction of building relating to setting up of CFCs, Testing Labs, Flatted Factory Complexes, Modular Industrial Estates, Tool Rooms/TDCs etc. can be addressed simultaneously under the Umbrella Scheme on Infrastructure whenever the land and building under different components are planned in the same place. The greatest advantage of implementation of Umbrella Scheme is the visibility of impact of implementation of such Schemes.

A New Index of Sovereign Credit Rating and an Estimation of CRIS over the Last Five Years

Major credit rating agencies give out the sovereign credit rating of each nation as an absolute grade. How other nations fare does not matter in a particular nation’s rating score. This is very different from a comparative rating. An example of comparative rating is the percentile score—the way GRE results are at times given. If a student is described as belonging to the 99th percentile, it clearly says something about this student’s performance vis-à-vis other students.

It is arguable that even for sovereign credit ratings there is a case for providing some kind of a comparative score. When an investor searches across nations for a place to put her money, the relative rating of nations is important. If nation i’s rating remaining the same, other nations’ ratings improve over time, there may well be a case to invest less in nation i.

Over the last five years, the global economy has gone through lots of highs and lows. Nations have moved up and down the ratings ladder. This makes it entirely possible that a particular nation that has had no rating change may now be better off or worse off in comparative terms. Also, a nation that has travelled down the rating ladder in absolute terms may be, in relative terms, better off because others have done even worse. Since, for investors, relative or comparative rating is such an important concept, it was felt that the Ministry of Finance ought to develop a new index which captures precisely this idea. Accordingly, the new index that has been developed is called the “Comparative Rating Index for Sovereigns” (CRIS). The detailed derivation of CRIS is available in the full paper on which this summary is based. The full paper is currently classified.

The computation of CRIS is based on nothing apart from Moody’s ratings and data on the GDPs of different nations as given by the IMF. In the paper we define CRIS formally and then track how nations have done over time. In order to capture this impact, the Ministry of Finance developed a new system for comparing the relative ratings of sovereign debt based on the historical evolution of their ratings over five years and the volume of their economic activity as measured by their GDP (not adjusted for Purchasing Power Parity (PPP)). The Finance Ministry develops a relative rating index and rank 101 economies according to this for the years 2007 to 2011. The index uses external data on GDP and ratings combined in terms of pure mathematical and statistical methods without interventions or interpretations.

The Moody’s ratings that the Ministry has used for all countries are the long term foreign currency sovereign ratings. To clarify, the Moody’s rating by this measure for India in 2007 and 2011 was the same (Baa 3). The CRIS score for these years for India were 66.47 (2007) and 69.83 (2011).

In other words, in relative terms India has become a better investment destination by 5.06%. In addition, India’s rank in terms of CRIS has moved up from 61st to 55th. If we view the rankings in terms of quintiles (blocks of one-fifth of the distribution) India moves from the fourth quintile to the third, that is, the middle quintile.

As expected the CRIS score for Greece has dropped sharply from 74.24 in 2007 to 13.97 in 2011—a decline of 81%; and that of Ireland and Portugal have dropped by more than 14%. Interestingly, in terms of CRIS, the U.S. has seen its score rise from 78.20 to 81.81. Ironically, this is accompanied by a loss of rank from the top of the chart to the 16th position. This shows that CRIS is distinct from a percentile score which is also a relative measure of status. In 2007 the 1st rank was shared between 20 economies but by 2011 this cohort had shrunk to 15.

The improvement in CRIS scores of nations such as India, China and Indonesia are partly due to the dramatic falls of scores of some European nations leading to a deterioration of the world average by over 4.8%.

This was especially evident in the cases of Greece, Ireland, Italy, Portugal and Spain. Dramatic falls of this type across the 2007 to 2011 period include Portugal’s fall from 23rd to 74th position with an index erosion of almost 15%, Ireland’s descent from the 1st rank club to 70th position with an over 14% fall in its index value and Greece’s precipitous dive from 30th rank to 101st (last) position accompanied by an over 81% fall in index value across the same period. Italy descended from 23rd to 37th rank with an index value loss of around 0.5%.Spain moved down from 1st to 34th rank and its index value lost approximately 1.35%. Iceland also suffered a great fall from 1st rank to 61st with an index fall of about 11.5%.

Other interesting developments include China’s index value increase of about 7.3% across the 2007 to 2011 time span. Brazil’s index value increased by 11.8%, Russia’s by about 7.5% and South Africa’s by about 5.79% in the same period. All the BRICS had improvements in rank as well as index value.

Among other economies, Israel increased in terms of CRIS value from 73.01 in 2007 to 77.58 in 2011 and Saudi Arabia had a CRIS value jump from 74.24 to 78.82 across the same period. Botswana’s CRIS value increased from 73.01 to 76.25 across the 2007 to 2011 interval.

The ten highest increases in the CRIS from 2007 to 2011 were achieved by (1) Paraguay (31.26%), (2) Lebanon (22.71%), (3) Bolivia (21.2%), (4) Uruguay (18.09%), (5) Belize and Nicaragua (both 15.63%), (7) Philippines (14.26%), (8) Indonesia (12.83%), (9) Peru (12.75%) and (10) Ecuador (12.27%). In interpreting these results, it needs to be borne in mind that for countries which began with low CRIS values, the scope for improvement is more. Seventeen economies had negative growth in the CRIS across this period. The ten highest decreases were (1) Greece (-81.19%), (2) Portugal (-14.82%), (3) Ireland (-14.14%), (4) Iceland (-11.52%), (5) Belarus (-10.05%), (6) Jamaica (-7.45%), (7) Egypt (-7.16%), (8) Cyprus (-5.94%), (9) Pakistan (-5.83%) and (10) Hungary (-4.66%).

Inland water transport gets a boost as NTPC, FCI commit cargoes

In order to fast track the development of the inland waterways for transporting bulk cargo, the Prime Minister Office has pushed for private and public sector partnership. To begin with a series of agreements were initiated at a meeting of the inter-ministerial co-ordination committee, according to an official statement issued here on Saturday.

It was agreed that NTPC will provide long-term cargo commitment for three million tonne of coal for Barh power project once all its five units are operational by 2016-17, while the execution of coal handling facility at Jogighopa and rail connectivity will be taken up under the Non-Lapsable Central Pool of Resources scheme.

“The initiative will harness potential of inland waterways in transporting bulk cargo such as coal, foodgrains, fertilisers, project cargo, fly ash, over dimensional cargo and containers at competitive cost for the public and private sector companies.

“Adequate use of waterways will also ease the burden on rail and road infrastructure,” the statement said.

Cargo commitment

Among other decisions, it was also concluded that the Food Corporation of India will provide a three-year cargo commitment for transportation of foodgrains to Tripura and Assam from Kolkata and within Assam, while ONGC and Oil India will convey a firm commitment of cargo through waterways in two weeks to the Inland Waterways Authority of India. Concor will also provide a firm commitment for transportation part of their container cargo from Pandu. “The Ministry of Shipping will consider providing additional money, if need be, to ensure night navigation facilities on the Indo-Bangladesh Protocol route. The progress on these decisions will be reviewed in two months time by the Principal Secretary to PM,” the statement said.

The Ministry of External Affairs will try to extend the period of Trade and Transit Protocol beyond March when vessel operators come for renewal. Also, efforts shall be made for early completion of Ashuganj multi-modal port by Bangladesh.

This follows the signing of a tripartite agreement on the Farakka Power Project between NTPC, Inland Waterways Authority of India and a private developer. With a committed investment of Rs 650 crore by the private entity, this deal will lead to competitive transportation rates for NTPC.

Polio eradication, a dubious claim

Health officials seem to be in a self-congratulatory mode, since no case of paralytic polio has been reported during 2011. But that doesn't mean that polio has been eradicated. As has happened in some other countries, polio cases can reappear.

Secondly, different public health experts have pointed out that polio cannot be eradicated through vaccination alone. Poliomyelitis, like many other infectious diseases, is primarily a disease of poverty, leading to insanitation and malnourishment. In developed countries, polio declined along with improvement in living standards, including sanitation. Vaccination played only a supplementary role in the disappearance of polio cases.

However, now an illusion has been created that we can overcome polio through vaccination alone. Polio incidence can be substantially brought down through immunisation. But there are technical reasons why, unlike small pox, polio cannot be eradicated through vaccination.

HIGHER LIMB PARALYSIS

Under the Indian eradication programme, three doses of oral polio vaccine were introduced from 1978–79 into the National Immunisation programme. This reduced paralytic polio cases by 80 per cent — from 24,257 in 1988 to 4,793 in 1994. But in 1995, under the influence of international agencies, the polio eradication strategy was launched, with a manifold increase in expense and human power deployment in polio vaccination.

The Central Government spent Rs 1,747 crore on pulse polio in 2009-10, and a total of more than Rs 12,000 crore during the last 12 years. When, in 2006-07, it spent Rs 1004 crore on Pulse polio, routine immunisation with some other vaccines received only Rs 327 crore, and tuberculosis control Rs 184 crore. And the context is — we have approximately 1.5 crore in tuberculosis cases and four lakh annual tuberculosis deaths compared with the estimated 20,000 cases, and less than 500 deaths annually, when the polio eradication programme was launched.

The justification for the polio eradication programme is that it would substantially reduce the incidence of lameness in children, because polio constitutes the most important cause of preventable lameness in children. But in reality, the incidence of limb-paralysis in children has increased after the Polio Eradication Initiative!

The Web site of the National Polio Surveillance Project (NPSP) reveals that the number of cases of Acute Flaccid Paralysis (AFP) in children increased from 3,047 to 60,466 (20 times) during 1997 to 2011! Officials argue that this rise in figures is because of thorough documentation and increased sensitivity of the surveillance system for recording AFPs, and that most of these children are later found to be normal. However, if the sensitivity of the surveillance system is increased in, say, the year 2000, we would see a steep rise in AFP cases in only 2001, and may be 2002. The continuous steep rise in AFP cases from 1998 till today belies this ‘explanation'.

Dr Jacob Puliyel, invoking the Right to Information, accessed Uttar Pradesh data which revealed that in 2005, of the 10,055 AFP cases, 2,553 cases were followed up for two months, 898 (39 per cent) continued to have paralysis. These were thus not ‘false positive cases' but were cases of paralysis as such. Dr Satyamala confirmed this for 2006, by again invoking the RTI. That most of these cases of ‘residual paralysis' don't have a polio virus in their stools is no consolation for the paralysed children and their parents.

It is possible that massive use of Oral Polio Vaccine (which contains attenuated but live polio virus) has mutated into a new virus which doesn't have identical morphological properties of the polio virus, but which causes paralysis. A rational and humane response to this rise in paralysed children should have been to suspend the additional dosages of the Oral Polio Vaccine and to investigate the matter. If any other scientific explanation is found, this programme can be exonerated. But till then, to continue with these additional dosages of Oral Polio Vaccine is unethical.

It is necessary that all these children who have lost their limbs be fully rehabilitated, and their parents adequately compensated. Criminal liability should be ascertained for those officials who have suppressed this information of breakup of follow-up of AFP cases, and those officials and policymakers who are responsible for continuing this policy of PEI.

VAPP CASES

It is well-known that Oral Polio Vaccine inevitably causes Vaccine Associated Paralytic Polio (VAPP) in a miniscule proportion of Oral Polio Vaccine receivers — an average 1 case of VAPP per 4 million doses of polio. In India, due to Pulse Polio, it is expected that annually there would be approximately 200 cases of VAPP till Pulse Polio continues. These children have to sacrifice their limbs involuntarily on the altar of ‘Public Good', that too, without getting rehabilitated, and without their parents getting compensated! The Jan Swasthya Abhiyan made the demand for rehabilitation and compensation for VAPP cases. The National Human Rights Commission recommended it. But the government ignored it.

Till polio isn't eradicated globally, developed countries will have to continue polio-vaccination even if there have been no cases of polio in these countries. Hence, it is in their interest that Polio Eradication is continued, even if it may not be the priority of the developing countries. One way of doing this is to exaggerate the problem of polio. In 1988, 32,419 cases of paralytic poliomyelitis were reported globally. While estimating the paralytic cases, WHO increased this figure 10-fold, to 3,50,000, with the argument that the actual cases were ten times the reported cases. By a sleight of hand, in subsequent literature, the word “reported” was deleted and it was claimed that annually polio paralyses ‘more than 3,50,000 children'!

It should also be pointed out that polio is only one cause of lameness in children, and the overwhelming majority of AFP cases are due to non-polio viruses. Hence, even if polio is eradicated, it will reduce lameness in children by only approximately 20 per cent. We should certainly try to control polio through vaccination and sanitation. But to create an impression that we are eliminating lameness in children through polio-vaccination is misleading.

Andhra Sugars begins supplying liquid hydrogen to ISRO

Andhra Sugars Ltd has started supply of liquid hydrogen, cryogenic fuel to the Indian Space Research Organisation (ISRO).

Liquid hydrogen is used as a propellant in the Geostationary Satellite Launch Vehicle (GSLV) by the national space agency.

GSLV is used in placing bigger satellites in a stationery orbit. India is testing its capabilities in this area. The liquid hydrogen tanker was flagged off by Mr S. Ramakrishnan (Director – LPSC) and Mr P. Narendranath Chowdary, Joint Managing Director of Andhra Sugars today from the Tanuku plant.

According to Mr Chowdary, the company has set up a facility to liquefy hydrogen gas with the technical guidance from ISRO.

In ISRO's satellite launch vehicle's solid propellant is used in the first stage, liquid propellant in the second stage and cryogenic propellant in the third stage of GSLV. All these propellants are now manufactured by Andhra Sugars.

The Tanuku-headquartered company has been supplying propellant's to the ISRO for some time as part of its national commitment and indigenous technology capability demonstration.

SEBI hikes minimum investment level in portfolio management schemes

The SEBI Board  decided to hike the minimum investment level under portfolio management schemes (PMS) to Rs 25 lakh from current level of Rs 5 lakh per client.

This has been done to protect the retail investors, Mr U.K.Sinha, SEBI Chairman said here after the Board meeting. He highlighted that PMS regulations are light touch regulations. Many retail investors are being drawn into PMS when their interests are not as tightly protected or guarded as it is in mutual fund regulations, he pointed out.

Mr Sinha also said that the enhanced minimum investment level of Rs 25 lakh per client will apply on a prospective basis. It’s only for new investors that the enhanced level will apply. The existing accounts will not be affected. However, existing investors in PMS are welcome to increase the investments in PMS if they have the capacity to do so.

Portfolio managers and wealth managers were keen that the existing minimum investment level of Rs 5 lakhs be maintained under the PMS. However, the SEBI Board has not acceded to their demands.

World Economic Forum at Davos

India will oppose any attempts by developed countries to sign a limited market-opening pact and also call for a check on rising protectionism at the meeting of trade ministers from key WTO member countries at Davos later this week.

Switzerland is hosting a meeting of trade ministers from select countries that include India, China, Brazil, the US and the EU on Saturday on the sidelines of the on-going World Economic Forum at Davos to assess the impact of the economic turmoil on trade and discuss the future of the WTO.

"We have got reports that some developed members are talking about a plurilateral pact in services. We are yet to know the details, but principally we are against plurilateralism within the multilateral framework of the WTO.

A pluriltateral agreement involves a few countries, while a multilateral pact includes all countries that are members of a global organisation, in this case the WTO.

In the absence of a breakthrough in the on-going Doha round of global trade talks that aims to open up markets in both goods and services for all 153 member countries, a number of members, led by the US, have been talking about limited trade opening pacts in select sectors involving just a few important countries.

Last week, Australia hosted a meeting of 16 WTO members that included the EU, the US, Japan, Chile, Honk Kong and even Pakistan, but excluded India, Brazil, China and South Africa, where the US proposed negotiating a plurilateral services agreement.

The Doha talks have reached an impasse as developing countries like India, China and Brazil have refused to give in to the US demand of opening up their markets more than others.

Acidic oceans - a closer reality

Most people invariably associate carbon emissions with atmospheric pollution, and the resultant negative impact on human life and health. However, elevated levels of atmospheric carbon dioxide can also leach into oceans over time, throwing the pH balance of the seawater completely off-balance and making them increasingly acidic.

How it happens

Of all the carbon emissions generated by human activities, 45 percent still remains in the atmosphere-the remainder is absorbed by oceans, and a small percentage is taken up by terrestrial plants. The absorbed carbon is largely in the form of inorganic carbon compounds such as carbon dioxide and carbonates, which react with water to form compounds such as dissolved free carbon dioxide, carbonic acid, bicarbonate and carbonate.

A result of this dissolution of carbon dioxide in seawater is an increase in the oceans' hydrogen ion concentration, thus decreasing the ocean pH. Since the Industrial Revolution of the 18th Century, the hydrogen ion content of the oceans has increased by approximately 29 percent. Experts estimate that by the year 2100, the acid concentration of the world's oceans will increase dramatically-even tripling from the existing levels if no substantial control measures are undertaken.

The rapid pace of acidification is triggering alarm bells for ecologists and marine life experts, who predict that if this acidification were to continue unabated, it will soon reach levels that are higher than anything the planet has witnessed in the past 65 million years.

Why is it dangerous?

The biggest threat from changes in the chemistry of ocean water is to marine organisms and their habitats. Increasing acidity is especially deleterious to the process of calcification, which involves the creation of calcium carbonate shells and plates. Calcification is a vital component of the lifecycles of a wide range of marine organisms, and a decrease in oceanic pH will prove threatening to their sustenance. Besides this, organisms may also suffer a variety of other harmful effects to their reproductive systems and general physiological health due to increased exposure to carbon dioxide. Recent research also suggests that acidification may interfere with the acoustic properties of seawater, allowing sound to propagate further. The resultant increase in ocean noise will adversely affect marine animals that use sound for navigational purposes.

While the planet's oceans have long served as a safety net of sorts in regulating the carbon content of the atmosphere, their carbon absorption abilities come at a steep cost-severe changes to ocean chemistry and a barrage of damaging implications for aquatic life. If this trend of arbitrarily dumping carbon into the atmosphere continues for much longer, scientists fear a relapse of the greenhouse event that struck the planet 55 million years ago, rendering many deep-water species extinct because of dramatic chemical changes to their underwater environment. Even as research is still underway to gauge the complete impact of acidification on the planet's oceans, the fact still remains that without timely measures, the damage may just go too far to be undone.

Green power sector: The India advantage

The country's status as a developing nation may actually prove to be a blessing in disguise for the green power sector

A yawning rural-urban divide, exploding population, inadequate facilities, low standard of living-these are only but a few of the many challenges that lie ahead before India as it forges up on a steep, development gradient. On the other hand, the world at large is confronted by the urgent need to make industry, business and lifestyles greener and more environmentally responsible.

For government and regulatory bodies in India, balancing the need to 'go green' with developmental issues seems difficult, even more so when the demand for resources and amenities far outstrips the available means. In such a situation, it seems but obvious for sustainability to take second place to economic growth. But if green development experts are to be believed, India's current situation places it at a unique vantage point for harnessing green technology to further its economic growth.

A power-hungry nation

Rapid urbanisation and booming industries have generated a huge demand for energy, one that far outstrips the supply. India's traditional dependence on thermal, coal-fired power plants is proving grossly insufficient, while also increasing power costs as resources become scarcer and more difficult to come by. For power producers, therefore, it makes more sense to invest in low maintenance, high output green energy technologies such as wind and solar power, which will prove to be a long-term, sustainable and cost-effective solution, in times to come.

A multi-pronged advantage

India's topography and geographic situation ensure that it receives ample sunlight and wind all through the year, making it an ideal candidate to harvest wind and solar energy. The Indian government is also a signatory on several international 'green' forums such as the Kyoto Protocol, and has accordingly issued legislature that incentivises the use and generation of sustainable power.

Considering that the cost of setting up a sustainable power plant is only slightly higher than a traditional fossil fuel-based unit, investing in the former is increasingly viable for Indian power players. Further, favourable government policies make it that much more cost-effective to set up these plants. Low running costs mean a shorter payback period-all the more reason for the renewable energy sector to flourish on the domestic front.

Opportunities from challenges

India's existing power grid is the number one reason why despite increased interest from the government and a booming power sector, the close-to-100 GW disparity between demand and supply continues to exist. The good news is that revamping this now obsolete grid structure is the only feasible way forward for the domestic power sector, and hence power producers will have to invest in developing newer, smart grid technologies.

The opportunities-from-challenges scenario exists in other areas as well: with India facing an acute shortage of potable water, the urgency to investigate alternative technologies such as desalination and wastewater recycling units is much higher than in other developed nations, which can go without such initiatives in the short term. India is poised for a sea change in terms of sustainable technologies, provided the private and public sector discard short-term profits in favour of long-term, sustainable rewards.

Social Responsibility for SMEs

The ongoing debate in Western economies regarding the role of corporates in widening the gap between the rich and the poor, exemplified by the Occupy Wall Street movement, has brought focus on ‘Corporate Social Responsibility' in public discourse in India. CSR in India is several decades old, where large corporate houses have been role models in adopting the local society they depend on for land, labour and some other resources. However, CSR has remained an elusive practice, adopted only by a limited number of large corporates, and is yet to become a mainstream initiative even among large companies. In this context, SMEs in India have a key role to play, in bridging the social divide while building a prosperous India.

BUSINESS WITH ETHICS

Some CSR initiatives that any SME can strive to achieve include simply conducting its business in an ethical manner; paying all taxes and duties, providing a healthy working environment, adhering to basic social security regulations such as minimum wages, ESI, PF, etc, shunning cash-based transactions, and avoiding corrupt practices to solicit business — each of these will contribute to a much more equitable society than what we have currently inherited. SMEs are the bulwark of the economy, accounting for more than 45 per cent of industrial output, and more than 40 per cent of India's exports. A widespread adoption of ethical business practices among SMEs can have far-reaching implications for the country.

LOCAL COMMUNITIES

It may not be always cost-effective for an SME to source all its resource requirements — manpower, basic raw material, components, etc — from the local vicinity. However, building a relationship with the local community by co-opting them in some form would definitely help the enterprise in the long run. Entrepreneurs must realise that they are utilising a fair share of local resources such as land, water, power, etc, and should strive to return the favour to the local community. While adopting schools or hospitals could be possible only for large corporates, SMEs could meet their CSR goals through providing local employment, developing local vendors for supplies, using local agricultural produce or farm waste, etc.

Many entrepreneurs interpret CSR initiative as charity; however, this isn't a sustainable model, as such initiatives would suffer at the slightest pressure on the profitability of the enterprise. Entrepreneurs should recognise that CSR is their inalienable responsibility for the society, and strive to interweave CSR initiatives with their regular business goals.

NREGA, Food Bill can distort labour market

It appears that collectively we may not have learnt appropriate social or economic lessons from the National Rural Employment Guarantee Act (NREGA) operations.

One would have assumed that the NREGA recipients would adopt it as a supplementary employment opportunity, instead of giving up their regular occupation.

The government's infusion of Rs 70,000 crore through NREGA should have created an additional primary employment for about 2 crore people assuming Rs 35,000 (inclusive of wages, leakage, and material) per person. Given the low savings level in the rural areas — our national average household savings is 18-19 per cent and a lot less in rural areas — and hence a very high level of consumption, the income multiplier is very high.

Even if one assumes a much more sober employment multiplier of three, it should have created 6 crore jobs in the rural areas — capable of wiping out unemployment (and the associated problems such as hunger and malnutrition). But there is hardly any evidence of such a big-bang impact in the rural areas.

Instead, there is a far-greater-than-expected increase in absenteeism from regular employment — organised and unorganised — and consequent increase in wage levels in traditional vocations. Instead of working additional hours and enhancing incomes and climbing aspirational ladders, the rural recipients seem to have given up their regular occupation and chosen to be satisfied with their current levels of income and consumption.

Ignoring social dynamics

This unanticipated and counter-intuitive outcome of NREGA needs to be understood. It is an uphill task to change social behaviour and personal habits of people; even aspirations and desires seem to rigidify with advancing age. Leisure is not the privilege of the rich alone; even the poor fancy such pursuits.

Demand for products depends on aspirations and desires, availability and exposure to temptations, and peer pressure. Clearly, peer pressure among the rural poor is feeble to begin with, and the penetration level of many products in our rural areas, except for shampoos, soaps, toothpastes, mobile phones and sweetmeats, is very low. Desires have been marinated at very low levels for ages of poverty and under-nourishment. Most of the NREGA wages has hence invaded just food, causing high food inflation.

The current Food Bill does not seem to incorporate the lessons from these social dynamics — low aspirations resulting in substitution of employment instead of supplementing it, leading to rising wage levels in traditional occupations, and food inflation. The Food Bill might provide short-term succour, but in the long term both damage the system and stymie individual growth and eagerness to work.

Negative aspects

Let us assess some of the possible negative side-effects of the Food Bill.

Firstly, if farm labour takes the benefits of food security and ‘shrinks' its work to a corresponding extent, we could have a steep increase in agrarian labour costs. Our agriculture, which is already ailing for want of public or private investments or research (the last significant breakthrough came about four decades ago), could hardly cope with a crisis on the key input — labour costs.

Secondly, if the labour takes NREGA and food subsidies and shrinks from other work, labour costs can go up steeply for rural industries which are, as it is, not that competitive. Rural industrialisation may receive a setback.

Thirdly, and perhaps the most dreadful, is the long-term consequence. Like aspirations, desires and lifestyle even lethargy and leisure can be hard-coded into personal DNA. Easy money from NREGA and Food Bill could easily lead to long-term lethargy in people, who are already used to unemployment, under-employment-induced work inertia and might get used to subsidies. Any development or poverty reduction depends in equal measure on individual desire and initiative, and external help and intervention. A Food-Bill type of initiative will blunt the effectiveness of future developmental initiatives.

Fourth, such large infusions into ‘aspiration trapped' markets can cause high food inflation.

Go for skill building

Social security to cover cyclical unemployment or temporary unemployment between jobs, like in the West, may be all right. But it may be an inappropriate medicine for solving chronic unemployment, which can be solved only with expansion of employment opportunities. A more beneficial approach would be skill-building leading to better productivity and lower ‘effective' labour costs.

Luckily India is woefully short — both quantitatively and qualitatively — in several social and economic services that only the Government can render, such as police, justice, traffic regulation, public administration, urban waste disposal, civic administration, among others. Just catching up with the world averages in such social services will create enough primary employment to largely address the unemployment and poverty issues. Fortunately not all government services require high prior education — more on-the-job training would improve the quality of services far better.

GENERAL AWARENESS PRACTICE QUESTIONS FOR BANK EXAMS

1. The Govt of India has decided to declare which of the following rivers a National River?

a) Brahmaputra
b) Yamuna
c) Ganga 
d) Kaveri    
e) None of these

2. Who amongst the folIowing economists gave the concept of "economies of scale", which says "many goods and services can be produced more cheaply in long series"?

a) Edward C Prescott
b) Amartya Sen
c) Gary S Becker
d) Edmund S Phelps
e) Paul Krugman

3. Very often we read in newspapers/magazines about "Sovereign Wealth Funds". Which of the following is/ are the correct description of the same?

(A) These are the funds or the reserves of a government or central bank of a country which are invested further to earn profitable returns.

(B) These are the funds which were accumulated by some people over the years but were not put in active circulation as they retain them as Black Money for several years.

(C) The funds which are created to be used as relief funds or bailout packages are known as sovereign funds.

a) Both B & Conly
b) Only B
c) Only C
d) Only A
e) None of these

4. Very often we read about Special economic Zones (SEZs) in newspapers. What is the purpose of promoting SEZs in India?

(A) They are established to promote exports.

(B) They are established to attract investments from foreign countries.

(C) They are established to help the poorest of the poor in India as the activities of these zones are reserved only forthe poors and those living below poverty line.

a) Only A    
b) Only B
c) Only C
d) Both A & B only
e) None of these

5. The ratio of the Cash Reserves that the banks are required to keep with the RBI is known as

a) Liquidity Ratio    
b) SLR
c) CRR    
d) Net Demand & Time Liability
e) None of these

6. The-Govt ofIndia in order to provide some relief to the exporters announced a relief-package of Rs

a) 1000 cr
b) 2500 cr
c) 4000 cr    
d) 5000 cr
e) 7000 cr

7. The availability of cash and other cash-like marketable instruments that are useful in purchases and investments are commonly known as

a) Cash crunch
b) Liquidity
c) Credit
d) Marketability
e) None of these

8. The White Tiger is a book written by

a) Amitav Ghosh    
b) Arundhati Roy
c) VS Naipaul    
d) Kiran Desai
e) Aravind Adiga

9. Besides USA and France, India has a Civil Nuclear Deal with

a) Britain    
b) Russia
c) Germany 
d) Canada
e) Australia

10. Jnanpith Award is given for excellence in the field of

a) Music    
b) Literature    
c) Sports
d) Films    
e) Social Services

11. As per newspaper reports, India's trade gap has been showing a negative growth for the last few months. "Trade Gap" means what?

a) Gap between total GDP and total consumption
b) Gap between total imports and total exports
c) Gap between available liquidity and expected demand in next five months
d) Gap between budgeted revenue collection and actual collection of the same
e) None of these

12. 'Equity schemes managed strong NAV gains, which, boost their assets' was a news in some financial newspapers. What is the full form of the term NAVas used in above head lines?

a) Nil Accounting Variation
b) Net Accounting Venture
c) Net Asset Value
d) New Asset Venture
e) None of these

13. As per reports published in various newspapers, mutual fund companies showed 94 per cent growth in their total profits during 2009-10. This means the profits earned by these companies were 94 per cent

a) in their total investments they made collectively during the year
b) more than their profits during previous year
c) of the total capital of the company
d) less than the total expenditure of the companies
e) None of these

14. As per the reports published in some major news papers "ADAG companies" made good profits during the year. ADAG companies are popularly known as

a) Companies owned by Tata Group
b) Aditya Birla Companies
c) Reliance Companies
d) Companies owned by Aptech
e) None of these

15. "Mutual Funds reported exceptional performance in 2009-10" was the news in major financial news papers recently.  What is a mutual fund?

A. A type of collective investment scheme that pools money from many investors and invests it in stocks, bonds or other money market instruments.

B. It is a subsidiary of a bank or financial company created specially to raise money to be invested in a particular industry, ie housing or insurance etc. The money raised thus cannot be invested anywhere else.

C. When several banks and financial companies come together and create a common pool of money to fund mega infrastructural project like bridges, roads, power plants etc, the common pool is known as Mutual Fund.

a) Only A
b) Only B
c) Only C
d) All A, B & C
e) None of these

16. We very frequently read about Europe's sovereign debt crisis these days. Which of the following statements/is/are true about the same?

A. In early 2010 the Euro crisis developed in some countries like Greece, Spain and Portugal.

B. This created a credit default swap between the countries of the European Union ..

C. SAARC countries have offered some assistance to some of the severely affected countries like Portugal, Spain and Greece.

a) Only A
b) Only B
c) OnlyA & B
d) All A, B & C
e) None of these

17. As per the announcement made by the RBI, some Stock Exchanges in India are allowed to introduce Plain Vanilla Currency Options. The term Plain Vanilla Currency Options is associated with which of the following activities/operations?

a) Dollar-Rupee Exchange Rate
b) Floating of Commercial Papers
c) Launch of new mutual funds
d) Deciding the opening price of a share on a particular" business day
e) None of these

18. The process of "Artificial Application of Water to the soil usually for assisting in growing crops" is technically known as

a) water harvesting
b) irrigation
c) water recharging
d) percolation
e) none of these

19. Waste Water generates which of the following gases. which is more powerful and dangerous than C02?

a) Nitrogen    
b) Sulphur dioxide
c) Hydrogen
d) Methane
e) None ofthese

20. Which of the following days was observed as World Water Day 2010?

a) 20th June
b) 22nd July
c) 22nd March
d) 20th May
e) None of these

21. "Indira Gandhi Canal", which is around 450 km long, provides irrigation facility mainly to which of the following states?

a) Punjab
b) Haryana
c) Madhya Pradesh
d) Gujarat
e) Rajasthan

22. Who amongst the following is the director of the popular Hindi film "OyeLucky ! Lucky Oye"?

a) Mani Ratnam    
b) David Dhavan
c) Dibakar Banerjee    
d) R Balakrishnan
e) None of these

23. Which of the following is NOT a missile developed by the Defence Research and Development. Organisation (DRDO) ?

a) Shaurya
b) Pinaka
c) Brahmos
d) Agni    
e) Nag

24. Which ofthe following metals is used for generation of Nuclear Energy by most of the Nuclear Power Plants?

a) Zinc    
b) Platinum    
c) Uranium
d) Nickel    
e) None of these

25. Indus Water Treaty is a pact on' sharing of river water between India and

a) Bangladesh    
b) Pakistan
c) Nepal
d) Afghanistan
e) Myanmar

26. Which of the following is/are considered a Renewable Source of Energy?

A. Wind Energy

B. Solar Energy

C. Nuclear Energy

a) OnlyA  
b) OnlyB
c) OnlyC
d) Only A & B
e) All A, B' & C

27. Mrs. Pratibha Patil is the _______the President of India 

a) 10th President of India
b) 11th President of India
c) 12th President of India
d) 1st President of India
e) 15th President of India

28. How many intertwined rings are shown in the Olympic Flag used these days in the games?

a) Five
b) Six   
c) Seven
d) Three
e) None of these

29. India's 'Look East' trade policy is designed to help particularly members of which of the following group of nations?

a) SAARC    
b) ASEAN
c) WTO
d) NAT
e) EU

30. Which of the following countries has signed a 22-Point Agreement with Madhesi People's Right Forum (MPRF)?

a) China    
b) Nepal    
c) India
d) Bangladesh    
e) Myanmar

31. 'Brahmos' is designed to be used by which of the following?

a) Indian Navy
b) Indian Army
c) Indian Air Force
d) Border Security Force
e) All of these

32. Which of the following agencies/organisations is setting up India's first Natural Resource Data Centre in Kolkata?

a) RBI 
b) SEBI
c) NABARD
d) S~C    
e) BARC

33. The Finance Minister ofIndia recently made a mention that Infrastructure Development in India should be done on PPP model only. What is the full form of'PPP'?

a) Purchasing Power Parity
b) Public Private Partnership
c) Purchase Produce Provide
d) People's Programme & Priority
e) None of these

34. The Global Non-Violence Day was observed on which of the following days?

a) 15th August
b) 14th November
c) 19th September
d) 2nd October
e) 30th January

35. The period for 11 th Five Year Plan is

a) 2005-10
b) 2006-11    
c) 2007-12
d) 2008-13    
e) None of these

36. Who amongst the following has played the main/lead role in the film Chak De India?

a) Abhishek Bachchan    
b) Salman Khan
c) Aamir Khan    
d) Shah Rukh Khan
e) None of these

37. 'Ranji Trophy' is associated with the game of

a) Hockey    
b) Football
c) Badminton
d) Cricket
e) Tennis

38. Which ofthe following awards is given for excellence in literary work?

a) Bharat Ratna
b) Shanti Swamp Bhatnagar Award
c) DronacharyaAward
d) Arjuna Award
e) Pulitzer Prize

39. Roger Federer, who won the US Open 2007 Tennis Championship, is a citizen of

a) Belgium
b) France
c) Russia
d) USA    
e) Switzerland

40. Which of the following awards is NOT a 'Gallantry I Award'?

a) Mahavir Chakra    
b) Vir Chakra
c) Vishista Sewa Medal
d) Ashok Chakra
e) Saraswati Saminan

41. As per the to Commerce Ministry data released on 2 January 2012, India’s exports recorded their slowest pace of growth in two years in November 2011. What was the per centage of growth recorded?

a) 4.2%
b) 3.8%
c) 2.2%
d) 0.94%

42. The capital market regulator SEBI on 3 January 2012 allowed auctioning of securities through stock exchanges and introduced a new method for institutional placement of stocks. Which of the following facts related to the above statement is/are not true?

1. Under the institutional placement programme (IPP), shares can be sold only to qualified institutional buyers.

2. There shall be at least 25 allottees in every IPP issuance. No single investor shall receive allotment for more than 25% of the offer size

3. The IPP method can be used to increase public holding by 10% and could be offered to only qualified institutional buyers with 25% being reserved for mutual funds and insurance companies

4. Under the IPP, companies will have to announce the ratio of buy-back, as is done in the case of rights issues and fix a record date for determination of entitlements as per shareholding on record date

a) Only 1
b) Only 3
c) Only 2
d) Only 4

43. What is the Finace Ministry’s decision on the rates applicable on small savings instruments schemes that would be announced on April 1 each year?

a) rate would remain valid till the maturity of the scheme
b) rate would change in the first qurter of that respective year
c) rates would change depending on different maturity period
d) rates would remainvalid for six months post the maturity

44. Scientists discovered unknown species off the coast of Antarctica. Consider the following statements: i) The temperature in this region rises to 380 degree Celsius. Ii) There is plenty of light in this region.

Which of the above statements is/ are correct?

a) Only i
b) Only ii
c) Both i and ii
d) Neither i nor ii

45. Scientists produced artificial human semen to help infertile men.  Consider the following statements:

i) The scientists grew the sperm by enveloping the germ cells in a special compound called agar jelly.

ii) The artificial human semen could help infertile men father their own children.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

46. Health Authorities in Australia recently detected Deadly Disease, Murray Valley Encephalitis.  The disease is caused by the__.

a) Flies
b) Mosquitoes
c) Birds
d) Dogs

47. Which PSU announced on 2 January 2012 that its board approved in a meeting held on 30 December 2011 the switching over to internationally-accepted Gross Caloric Value-based pricing mechanism?

a) BHEL
b) ISPAT
c) CIL
d) IOC

48. Mukesh Ambani’s Reliance Industries Ltd (RIL) entered the media and entertainment sector by making a major investment in one of India’s largest broadcast companies. Name the broadcast company.

a) Network18 Group
b) Adlabs Films
c) Balaji Telefilms
d) Bag Films

49.  India approved the acquisition of French advanced missile systems to arm the Mirage-2000 fighter jets. Consider the following statements:

i)  The cabinet committee on Security cleared the contract for the fire and forget MICA with French company MBDA.

ii) MICA are interception and aerial combat missiles.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

50.  The Union government approved Katra-Quazigund Railway line project. The project is located in__.

a) Jammu and Kashmir
b) Bihar
c) Punjab
d) Haryana

51.

(1) Theatre director, screenplay writer and actor Satyadev Dubey, credited with introducing existential and absurd theatre, passed away on 25 December 2011. Which facts about the concerned person is/are not true?

(2) he got attracted to the post-1947 theatre and joined Theatre Unit, the theatre group-cum-school founded by Ebrahim Alkazi

(3) Dubey came into prominence with Dharamvir Bharati’s radio-play Andha Yug that brought to the fore the pervasive criminal and homicidal tendencies during the times of war.

(4) He penned screenplays/dialogue of some acclaimed films in the 1970s, including Shyam Benegal's Nishant, Ankur, Kalyug and Bhumika

(5) He won the Filmfare Award for Best Dialogue in 1980 for the film Ankur

a) Only 1
b) Only 4
c) 2 & 3
d) Only 2

52. Lok Sabha on 27 December 2011 passed the Lokpal and Lokayukta bill, 2011. Consider the following statements:

i) The setting up of Lokayuktas by the states would not be mandatory.

ii) The constitutional amendment bill fell through.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

53.

(1) Reserve Bank of India deregulated non-resident external (NRE) deposits on 16 December 2011 allowing banks  to offer higher interest rates to dollar-denominated accounts. Which of the following facts related to the above statement is/are not true?

(2) Reserve Bank freed the rates on non-resident external accounts, offering interest as high as 9.6% per annum

(3) Following RBI’s deregulation five Indian banks, including HDFC Bank and Yes Bank on 23 December 2011 raised their interest rates on such deposits in order to lure foreign money

(4) Private lender Yes Bank increased the interest rates on fixed deposits held by non-resident Indians (NRIs) to 8.4 per cent from 3.82 per cent

(5) The new rates are effective from 24 December for fresh deposits as well as those being renewed on maturity.

a) 1 & 2
b) Only4
c) Only 3
d) 1 & 4

54. According to the RBI data, India's foreign exchange reserves fell by what amount to $302.1 billion during the week ended 16 December  2011 on account of a fall in foreign currency assets?

a) $4.67 billion
b) $3.33 billion
c) $5 billion
d) $5.75 billion

55. Telecom Commission, the decision-making body of the Department of Telecommunications recommended a uniform licence fee of what per cent of adjusted gross revenues (AGR) as against the prevalent rate of 6-8 per cent?

a) 10%
b) 8%
c) 5.2%
d) 9.3%

56.  NASA's Kepler mission discovered the first Earth-size planets orbiting a sun-like star outside our solar system. These planets are called ___ and____.

a) Kepler-20e; Kepler-20f
b) Kepler-20a; Kepler-20b
c) Kepler-20c; Kepler-20d
d) Kepler-20m; Kepler-20n

57. Scientists at the Salk Institute for Biological Studies report discovered a missing link between the body’s biological clock and sugar metabolism system. Consider the following statements
i) Sugar Metabolism is a process by which the body uses sugar for energy.

ii) If the human body produces too little insulin, the amount of sugar in the blood increases abnormally, a condition known as hyperglycemia.  Choose the right option:

a) Both i and ii are correct.
b) Neither i nor ii is correct.
c) Only i is correct.
d) Only ii is correct.

58. Name the gene found by the neuroscientists, which could help in creating and altering memory.

a) Mpas 4
b) Npas 4
c) Npas 3
d) Mpas 2

59. Name the Rashtriya Lok Dal (RLD) leader who was inducted into the Union Cabinet as civil aviation minister on 18 December 2011.

a) Ajit Singh
b) Jayant Chaudhary
c) Devendra Nagpal
d) Sanjay Singh Chauhan

60. Popularly known as Adam Gondvi, this Hindi poet who  wrote revolutionary poetry focusing on the pathetic state of dalits and the poor breathed his last in Lucknow on 18 December 2011. Name the poet.

a) Bharat Bhusan
b) Ram Nath Singh
c) Uday Prakash
d) Shail Chaturvedi
e) Naresh Mehta

61. The Union cabinet of India on 22 December 2011 approved __ percent share for minorities within the 27% OBC quota in jobs and university seats.

a) 4.5
b) 5.6
c) 3.4
d) 5

62. The Manipur Legislative Assembly passed the Manipur Lokayukta Bill, 2011. Manipur will be the __state in North-Eastern India to have alegislation of Lokayukta.

a) Second
b) Third
c) First
d) Fourth

63.

(1) Former Czech president Vaclav Havel who had been suffering from chronic respiratory problems died on 18 December 2011. Which of the following facts mentioned about him is/are not true?

(2) He was the tenth and last president of Czechoslovakia (1989–92) and the second President of the Czech Republic (1993–2003)

(3) He played a seminal role in the Velvet Revolution that ended four decades of repression by a regime which Havel ridiculed as Absurdistan.

(4) He co-authored the human rights manifesto Charter 77, which drew wide attention in the West.

(5) As president, he oversaw the country's transition to democracy and a free-market economy and also the peaceful 1993 breakup into the Czech Republic and Slovakia.

a) Only 3
b) Only 1
c) 1 & 4
d) Only 4

64. The enigmatic leader of North Korea Kim who led his nation for 17 years through a devastating famine while frustrating the United States and other global powers with approach to talks on giving up nuclear arms in return for food and other assistanceon died on 17 December 2011 after he suffered a massive heart attack. Name the leader

a) Kim Jong-il
b) Kim Il-sung
c) Kim Jong-un
d) Kim Jong-chul

65. Which Controversial film based on the 116-year-old Mullaperiyar dam and directed by Sohan Roy made it to a shortlist for the Oscars under the Best Picture category?

a) Rio and The Muppets
b) Undefeated
c) Project Nim
d) Dam 999

66. India and Australia on 16 December 2011 signed an agreement to amend DTAA (Double Taxation Avoidance Agreement).  DTAA was signed between India and Australia in__.

a) 1990
b) 1991
c) 1992
d) 1995

67. The Indian women's hockey team defeated Ireland 4-1 win to clinch the bronze medal in the four-nation tournament held in Parana, Argentina in December 2011. Which team won the gold medal?

a) South Africa
b) USA
c) Argentina
d) Pakistan

68. Who defeated ace badminton player and World No. 4 Saina Nehwal of India in the women’s singles final of the $500000 BWF World Super Series badminton championship in China on 18 December 2011?

a) Zhang Ning
b) Xie Xingfang
c) Xu Huaiwen
d) Wang Yihan

69. Which India striker was on 20 December 2011 voted Player of the Year by the All India Football Federation?

a) Sunil Chhetri
b) Savio Medeira
c) Kyrshan Lyngshing
d) Babu Mani

70. Diesel consumption in Delhi declined by a startling 26% in 2010-11 compared to 2009-10. Delhi was however found to have used 2.24% more petrol in the same period. As per the latest Delhi government figures, the consumption of diesel in the city stood at what amount in 2010-2011?

a) 10.98 lakh metric tonnes
b) 7.5 lakh metric tonnes
c) 8.11 lakh metric tonnes
d) 6 lakh metric tonnes

71. Fears of continuing economic slowdown, lack of decision making at the centre, rising fiscal deficit combined with not-so-impressive revenue collections upset Dalal Street investors on 20 December 2011. Which of the foolowing facts  related to the above statement is/are not true?

1. Fears of continuing economic slowdown, lack of decision making at the centre, rising fiscal deficit combined with not-so-impressive revenue collections led to a 204 points loss in sensex that ended at 15175

2. The slide on 20 December 2011 was triggered by FII selling which recorded a net outflow of Rs 600 crore, taking the month’s total net outflow to about Rs 1700 crore.

3. The combined effect of the market’s slide and the depreciation of the rupee forced India to exit from the select group of countries with a $1 trillion market capitalization

4. There was not even a single ADR issue in 2011. However, companies raised about $220 million through GDRs (Global Depository Receipts) during 2011

a) Only 1
b) 3 & 4
c) Only 3
d) Only 2

72. Credit rating agency Moody's on 21 December 2011 upgraded the credit rating of the Indian government's bonds from the speculative to investment grade. Which of the following facts related to the above statement is/are true?

1. According to a release issued by the Finance Ministry, Moody's unified India's local and foreign currency bond ratings at Baa3

2. Moody's Investor Service upgraded its local currency rating for Indian government bonds to Baa3 which is speculative grade as compared to the earlier Ba1 which is junk or investment grade.

3. India's foreign currency bond ceiling is unchanged at Baa2, and the foreign currency bank deposit ceiling is Baa3. The local currency bond and bank deposit ceilings are unified at A1.

4. The government's local currency short-term rating has been changed to P-3 from NP, indicating the government's ability to repay short-term debts.

a) Only 2
b) Only 1
c) 1 & 3
d) Only 4

73. According to official data released here on 22 December 2011, food inflation dropped sharply to an almost four-year low of what per cent during the week ended 10 December indicating an overall easing of prices?

a) 1.5%
b) 1.32%
c) 1.81 %
d) 2.32%

74. Which of India's leading commodity bourses on 20 December 2011 became the world's fifth-largest commodity futures exchange?

a) National Multi Commodity Exchange of India
b) Bharat Diamond Bourse
c) Multi Commodity Exchange
d) Bombay Stock Exchange

75. Ravi Ruia decided on 21 December 2011 to step down as chairman of which of the following London-listed after a trial court admitted a criminal chargesheet filed by the investigating agency, CBI?

a) Essar Energy
b) Essar Shipping
c) Essar Oil
d) Eaasr Technologies

76. Which company won the award for Alternative Thinking and Driving Positive Change in the Fleet Owner category at the Mahindra Navistar Transport Excellence Awards 2011 at Hotel Ashok here on 20 December 2011?

a) Tata Motors
b) Hero Group
c) Edu Comp
d) Agarwal Packers & Movers

77. Which PSU lender decided to aggressively market its gold loan scheme for farmers to prevent defaults after the agriculture sector witnessed a sharp spike in bad debt in the past one year?

a) Union Bank
b) United Bank of India
c) Industrial Development Bank of India
d) State Bank of India

78. Who did the Central Government appoint as Chairman and Managing Director (CMD) of Andhra Bank?

a) B. A. Prabhakar
b) O. P. Bhatt
c) Pratip Chaudhuri
d) S. Vishvanathan

79. The directorate general of hydrocarbons (DGH), the technical arm of the oil ministry approved which company’s proposal to commence production from Bhagyam, the second-largest oil field in the Rajasthan block?

a) Essar Oil
b) ONGC
c) Cairn India
d) Indian Oil

80. Scientists discovered that the protein__ is responsible for regulating fatty acid oxidation in the liver and is critical for metabolism.

a) CPT1
b) CTP1
c) CTT1
d) CPT2

81. British Scientists recently developed a technology to produce pocket TV. Consider the following statements:

i) Scientists developed a new form of light-emitting crystals, known as quantum dots.

ii) These tiny crystals are 100000 times smaller than the width of human hair.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

82. Scientists developed a hydrogel that regenerate healthy and scar-free tissue on skin damaged by severe burns.  Consider the following statements:

i) The hydrogel helps in formatting of new blood vessels and skin including hair follicles.

ii) The injured soldiers, fire victims and people with third degree burns can avail of the gel.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

83. The Sangita Kalanidhi M.S. Subbulakshmi Award was presented to whom at the inauguration of the 85th annual conference of the Music Academy in Chennai on 15 December 2011?

a) S.R. Nathan
b) Trichy Sankaran
c) Subramania Pillai
d) Subramaniyam Iyer

84. The 40th anniversary of vijay diwas was celebrated on which day marking the finest hour of the Indian armed forces when they defeated Pakistan, leading to the creation of Bangladesh in 1971?
a) 12 December
b) 15 December
c) 16 December
d) 18 December

85. The Himachal Pradesh Cabinet on 15 December 2011 approved amendment to the state industrial policy. Consider the following statements:

i) The amended industrial policy seeks to promote environmentally sustainable development in the state and encourage cleaner production and adoption.

ii) Under this policy, disincentive industries will be put on negative list.

Choose the right option:

a) Both i and ii are correct.
b) Only i is correct.
c) Only ii is correct.
d) Neither i nor ii is correct.

86. The Supreme Court of India directed Tamil Nadu to ensure that the water level in the Mullaperiyar dam does not exceed __but declined to entertain Kerala’s plea for reducing the level to__.

a) 136 feet; 120 feet
b) 120 feet; 136 feet
c) 140 feet; 112 feet
d) 150 feet; 140 feet

87. A parliamentary committee on 13 December 2011 rejected the proposal to allow what percentage foreign direct investment in the insurance sector?

a) 51%
b) 49%
c) 43%
d) 29%

88. According to data from research body All India Organisation of Chemists and Druggists (AIOCD), Indian drugmakers posted a certain per cent month-on-month growth in sales of November 2011 which was the highest in the past 14 months. What was the per cent of sales growth projected for the month?

a) 23%
b) 31%
c) 21%
d) 43%

89. The government waived loan of handloom weavers in India to help revive the sector under the scheme of Revival, Reform and Restructuring Package for Handloom Sector. What amount of loan was waived?

a) Rs 548.35 crore
b) Rs 420.66 crore
c) Rs 506.64 crore
d) Rs 3521 crore

90. A committee on mutual funds, constituted by SEBI in december 2011 recommended to the regulator’s board to break down the bifurcation within the fee structure known as expense ratio. Which of the following facts are not true with regard to the above statement?

1. Currently  mutual funds are allowed to charge up to 2.25% as expense ratio. fund houses are allowed to accept only 1.25% as asset management charges

2. Funds with large corpuses currently charge 1.55% as expenses charges

3. SEBI was suggested to keep overall scheme expenses unchanged at 2.25% for schemes with assets under management not exceeding Rs 400 crore

4. Expense ratio is more than important in debt schemes where the rate of return is not hig.

a) 1 & 2
b) 3 & 4
c) 1 & 3
d) Only 2
e) None of the above

91. Which player became the first player to win the Orders of Merit on both sides of the Atlantic on 11 December 2011 when he shot a closing 66 to finish third in the Dubai World Championship?

a) Luke Donald
b) Alvaro Quiros
c) Rory McIlroy
d) Paul Lawrie

92. Which country defeated Spain 1-0 to win for the 4th time hockey’s Champions Trophy title on 11 December 2011?

a) Pakistan
b) New Zealand
c) Australia
d) Greece

93. Name the woman squash player who on 10 December 2011 annexed the elusive women’s title while in the Senior National Squash Championship in Chennai.

a) Sarah Fitz-Gerald
b) Dipika Pallikal
c) Anaka Alankamony
d) Sushma Pillai

94.

(1) The Centre for Development of Telematics (C-DoT) on 5 December 2011 transferred indigenously-developed Gigabit Passive Optical Network (GPON) technology to seven telecom equipment manufacturers. Which of the following facts about the technology is not true?

(2) The GPON technology is a pivotal component required for broadband connectivity over optical fibre.

(3) C-DOT indigenously designed and developed GPON technology, which can be used to provide triple play (voice, video and data) through fibre-based networks

(4) The GPON technology was tested, validated, field-evaluated and made operational in MTNL's/VSNL’s network in Ajmer (Rajasthan)

(5) The technology will help fulfil requirements of major national programmes like the National Optical Fibre Network and the State Wide Area Network.

a) Only 1
b) Only 3
c) 1 & 4
d) Only 4

95. Bank lending to the priority sector grew at what percentagein October 2011 on an annual basis due to lower offtake by agriculture and MSME segments as well as decline in micro credit?

a) 10%
b) 12%
c) 13.7%
d) 8.3%

96. With the inauguration of the first state-of-the-art ATDC-SMART (Skill for Manufacturing Apparels through Research and Training) in Egmore, Chennai, the Ministry of Textiles launched which of the following schemes?

a) National Technology Mission for Technical Textiles
b) Integrated Skill Development Scheme
c) Technology Upgradation Fund Scheme (TUFS) For Textile
d) Rural Textiles Technology Development Skill


97. Which bank signed a memorandum of understanding with Life Insurance Corporation of India (LIC) to use the National Electronic Funds Transfer (NEFT) facility  to facilitate electronic funds transfer of policy payments to policyholders?

a) IDBI
b) Corp Bank
c) Indian Overseas Bank
d) Dhanlaxmi Bank

98. World Aids Day is observed anually on 1 December 2011. What was the theme of World AIDS Day 2011?

a) Getting to Zero
b) Stigma and Discrimination
c) Women & AIDS
d) Force For Change: World AIDS Campaign With Young People

99.

(1) An icon of Indian cinema and evergreen star Dev Anand died at the age of 88 in London on 3 December 2011 (4 December according to IST) after suffering a massive cardiac arrest. Which of the following facts about him is/are not true?

(2) Dev Anand started his career with Prabhat Films' Hum Ek Hain (1946) soon after he joined IPTA

(3) Anand started producing films after the success of Ziddi. He launched his own company Navketan in 1949 which, by 2011, had produced 31 films

(4) His first colour film, Johny Mera Naam with Waheeda Rehman was based on the novel of the same name by R. K. Narayan

(5) The Government of India honoured him with the Padma Bhushan in 2001 and the Dadasaheb Phalke Award in 2002

a) 1 & 4
b) Only 3
c) 2 & 4
d) 1 & 4

100. The Golden Peacock Award for the Best Film was given to which of the following films at the 42nd International Film Festival of India which came to an end at the Kala Academy in Panaji, Goa on 3 December 2011?

a) Russian film Elena
b) an Israeli film Restoration
c) Columbian Film Porfirio
d) Malayalam film Adaminte Makan Abu

 

Answer
1.	(c)	26.	(d)	51.	(b)	76.	(d)
2.	(e)	27.	(c)	52.	(a)	77.	(d)
3.	(d)	28.	(a)	53.	(c)	78.	(a)
4.	(d)	29.	(b)	54.	(a)	79.	(c)
5.	(c)	30.	(b)	55.	(b)	80.	(a)
6.	(d)	31.	(b)	56.	(a)	81.	(a)
7.	(b)	32.	(c)	57.	(a)	82.	(a)
8.	(e)	33.	(b)	58.	(b)	83.	(b)
9.	(b)	34.	(d)	59.	(a)	84.	(c)
10.	(b)	35.	(c)	60.	(b)	85.	(a)
11.	(b)	36.	(d)	61.	(a)	86.	(a)
12.	(c)	37.	(d)	62.	(b)	87.	(b)
13.	(b)	38.	(e)	63.	(b)	88.	(c)
14.	(c)	39.	(e)	64.	(a)	89.	(d)
15.	(a)	40.	(e)	65.	(d)	90.	(d)
16.	(a)	41.	(b)	66.	(b)	91.	(a)
17.	(a)	42.	(c)	67.	(c)	92.	(c)
18.	(b)	43.	(a)	68.	(d)	93.	(b)
19.	(d)	44.	(a)	69.	(a)	94.	(b)
20.	(c)	45.	(a)	70.	(c)	95.	(a)
21.	(e)	46.	(a)	71.	(d)	96.	(b)
22.	(c)	47.	(c)	72.	(a)	97.	(d)
23.	(a)	48.	(a)	73.	(c)	98.	(a)
24.	(c)	49.	(a)	74.	(d)	99.	(b)
25.	(b)	50.	(a)	75.	(a)	100.	(c)