November 1st, 2008

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Indian banking system sound and deposits safe, Prime Minister tells Parliament

Prime Minister Dr. Manmohan Singh has assured depositors that their deposits in Indian banks was entirely safe. Making a suo motu statement in Parliament on the global financial crisis, on October 20, he said that the Indian banking system was not directly exposed to the sub-prime mortgage assets.

Excerpts:

• Honourable Members are aware that this crisis had its origins in the U.S. and spread quickly to Europe. While the crisis began in the housing mortgage market, it soon extended to the money and credit markets. As a result, several financial institutions were pushed to the brink of insolvency.

• The financial storm has shaken confidence in the system and precipitated a steep decline in stock markets. It has produced a sharp slowdown in economic activity, with the prospect of a prolonged recession. India, like other developing countries, is experiencing the ripple effects of the financial crisis. However, we have taken a number of steps to minimise the impact.

• Our first concern was to ensure the stability of our banking system. I am happy to inform the House that the Indian banking system is not directly exposed to the sub-prime mortgage assets. Our banks, both in the public sector and in the private sector, are financially sound, well capitalised and well regulated. I wish to assure depositors in our banks that their deposits are entirely safe.

• Although our banks are safe, and they are also providing credit in line with anticipated credit targets, the global turmoil has led to a contraction in other forms of commercial credit. This contraction produced a liquidity crisis in the system.

• We have taken a number of steps to address this problem. Between October 6 to October 15, the RBI cut the Cash Reserve Ratio by a total of 250 basis points. The Government also arranged to provide, in advance, a sum of Rs. 25,000 crore to the banking system under the Debt Waiver and Debt Relief Scheme.

Development strategies must ensure equity: PM

Palling for a fair and equitable "distribution of the economic dividend",

Prime Minister Dr. Manmohan has said that development strategies must help preserve the environment. Dr. Singh was speaking on sustainable development at the Seventh ASEM Summit in Beijing on October 25.

Excerpts:

• Sustainable development is among the biggest challenges of our times. However, a lot of cooperative work is needed to transform it from a mere buzz word to an operational strategy for development. The development strategies that we adopt have to result in a fair, equitable and balanced distribution of the economic dividend. At the same time, it must also preserve and protect the environment. Only then can we make faster progress in meeting the Millennium Development Goals.

• We, therefore, need to put in place a global action plan to promote both food and energy security for managing the challenges of both accelerated growth and its environmental sustainability.

• Climate change threatens our environment and our development. A holistic approach is needed to tackle this problem. The challenge ahead is to put in place development strategies which improve living standards, create opportunities for job creation and are also environment friendly.

• Thus, common but differentiated responsibility should be the cardinal principle of negotiations to find practical and pragmatic solutions within the U.N. Framework Convention on Climate Change.

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Mayor of London visits Bharatiya Vidya Bhavan, London

Talling for a fair and equitable "distribution of the economic dividend",

Excerpts:

• Sustainable development is among the biggest challenges of our times. However, a lot of cooperative work is needed to transform it from a mere buzz word to an operational strategy for development be associated with the great metropolis, which was London. He went on to say that the Bhavanwas very much involved in the main stream activities of London environment and our development. A holistic approach is needed to tackle this problem. The challenge ahead is to put in place development strategies which improve living standards, create opportunities for job creation and are also environment friendly.

• Thus, common but differentiated responsibility should be the cardinal principle of negotiations to find practical and pragmatic solutions within the U.N. Framework Convention on Climate Change.

India launches its first moon mission

A rocket carrying 'Chandrayaan, India's first-ever lunar spacebar, was launched from the country's spaceport in Sriharikota, Andhra Pradesh, on October 22, catapulting the country into a select club that has sent missions to the moon, after the United States, the former Soviet Union, the European Space Agency, China and Japan.

Carrying aloft Chandrayaan, the rocket, Polar Satellite Launch Vehicle (PSLV C11) lifted off from the Satish Dhawan Space Centre and broke through the cloud cover at 6.22 am. The 44-metre-tall 316-tonne PSLV moved into its designated orbit within minutes, to sling Chandrayaan into geostationary transfer orbit, as scientists of the Indian Space Research Organisation cheered.

Chandrayaan will orbit the moon for two years. It carries 11 experimental payloads. They include five instruments designed and developed in India, three from European Space Agency (one of which is developed jointly with India and the other with Indian contribution), one from Bulgaria and two from the U.S. At lift-off, PSLV C11 weighed 22 tonnes more than earlier PSLV models, as its six strap-on motors were 3.5 metres bigger at 13.5 metre and the rocket carried 12 tonnes of solid propellant as against the usual 9 tonnes.

On October 29, Chandrayaan was pushed closer to lunar orbit after the fourth orbit-raising manoeuvre lifted the spacecraft to 267,000 km away from the earth.

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Anand retains World Chess Champion title

India's Viswanathan Anand has retained the World Chess Championship title in Bonn. On October 29, Anand drew the 11th game of the 12-game World Chess Championship final with white pieces against Vladimir Kramnik to take an unbeatable 6.5-4.5 lead and retained his world title at Bonn, Germany.

The latest win also gave Anand the World Chess title in three formats - a 128-player championship format in 2000 followed by a closed tournament in Linares- Morelia last year and now in matchplay against Kramnik. President Smt. Pratibha Patil congratulated Anand and in her message said that she was "delighted to learn about the victory and that Anand's consistent performance throughout his long and successful career is testimony to his hard work and dedication towards the challenging game of chess". Prime Minister Dr. Manmohan Singh said that Anand had made the country proud with his exemplary performance and with his dedication and consistency had set a stellar example to all sportspersons in India.