Kishenganga Hydro-electric project (KHEP)

Kishenganga Hydro-electric project (KHEP)

February 26th, 2013

Court of Arbitration the Court permits India to go ahead with the construction of the Rs. 3600 crore KHEP
In a key decision, the Court of Arbitration the Court chaired by Stephen M. Schwebel, at the Hague has permitted India to go ahead with the construction of the Rs. 3600 crore Kishenganga Hydro-electric project (KHEP) in North Kashmir. The court eliminated Pakistan’s plea that this was a violation of the 1960 Indus Waters Treaty.
Thus, India can go ahead with the diversion of the waters of Kishanganga for hydro-electric power generation.

• Kishanganga is a tributary of Jhelum.
• Kishenganga is called ‘Neelam’ in Pakistan.
• KHEP is a 330 MW run-of-the-river Kishenganga project.

Project is under construction by the NHPC (National Hydro Power Corporation) in Gurez valley near Bandipura in north Kashmir.
What was Pakistan’s contention?
Pakistan had contended that as per the 1960 Indus Waters Treaty, the following are impermissible:

1. The KHEP’s planned diversion of the waters of the Neelum (or Kishenganga)
2. The use of the drawdown flushing technique both at the KHEP and at other Indian hydroelectric projects that the Treaty regulates.

Pakistan had raised objections to the above holding that it will affect Pakistan’s water availability downstream and thus it sought setting up of a Court of Arbitration on May 17, 2010.
What was India’s contention?

• India had asserted that both the design and planned mode of operation of the KHEP are in full conformity with the Indus Waters Treaty of 1960.

What is the verdict of the Court of Arbitration?

• A Court of Arbitration was set up under the chairmanship Stephen M. Schwebel was set up on May 17, 2010 at The Hague.
• The members of the Court of Arbitration visited India and Pakistan for site inspection in June, 2011.
• The court eliminated Pakistan’s plea that this was a violation of the 1960 Indus Waters Treaty.
• Thus, India can go ahead with the diversion of the waters of Kishanganga for hydro-electric power generation.
• At the same time, the court has confined India from adopting the drawdown flushing technique for clearing sedimentation in the run-of-the river project.
• Thus, now India will have to adopt a different flushing technique for clearing sedimentation in the run-of-the river project.
• The Court had limited India from constructing any permanent works on or above Kishenganga at Gurez that may suppress the restoration of the full flow of the river.
• The court has permitted India to construct a temporary by-pass tunnel for diversion of waters.

TOD ( Transit-Oriented Development )

TOD ( Transit-Oriented Development )

February 24th, 2013

First phase of TOD pilot projects approved in Delhi
Approval has been granted for the implementation of Transit-Oriented Development (TOD) pilot projects along four metro corridors and another pilot project near Karkardooma in Delhi.  It will be implemented by the UTTIPEC (Unified Traffic and Transportation Infrastructure (Planning and Engineering) Centre) which is working to develop a vision and strategy for the creation of a mass-rapid transport system in the Capital. The UTTIPEC, which is a division of the Delhi Development Authority, will conduct at least 25 workshops in the months ahead focusing on the metro corridors b/w Chattarpur to Arjangarh and Peeragarhi to Teekri Kalan.
What is TOD and why it is being implemented?
Transit-oriented development (TOD):

• It is a mixed-use residential and commercial area in such a fashion so as to maximize access by Transit and Non-motorized transportation. In a TOD residential and commercial districts are located near and around a transit station/corridor which provides high quality service, good walking area, good parking management and many other design features that facilitate transportation use and maximize overall availability.

Objective:

• TOD is designed in order to maximize access to public transport. It would make public transport the first choice of travel for all sections of society.
• It incorporates features that promote transit ridership.
• Emphasize on building a transport system friendly to walkers, cyclists and women.

Features:

• A TOD neighborhood typically has a center with a transit station or stop (train station, metro station, bus stop, etc.)
• Streets have good Connectivity.
• Traffic control features.
• Parking Management.
• Mixed-use development that includes shops, schools and other public services, and a variety of housing types and prices, within each neighborhood.
• A TOD is surrounded by relatively high-density development with progressively lower-density development spreading outward from the center.
• Radius of a TOD generally varies from 400 to 800 m from a transit stop, as this is considered to be an appropriate scale for pedestrians. Intense Zone: Inner zone of radius 300 meters, it will have high-density mixed use development, pedestrians and non-motorized transport.
• Then there are two more concentric zones of 800 meters and 2 km with high-density street network and equitable distribution of road space.
• It is generally believed that transit riders will walk up to a quarter-mile to a bus stop and a half-mile to a train station, albeit in practice a portion of transit riders will walk somewhat more.

Some of the benefits of TOD include:

• Reduced household driving and thus lowered regional congestion, air pollution and greenhouse gas emissions.
  Walkable communities that accommodate more healthy and active lifestyles.
  Provides Housing and Mobility choices
  Improves environmental performance
  Results in infrastructure cost savings
  Helps supports healthy life-styles
  Strengthens Transit systems
  Creates lasting value
• Increased transit ridership and fare revenue.
  Improved access to jobs and economic opportunity for low-income people and working families
  Expanded mobility choices that reduce dependence on the automobile, reduce transportation costs and free up household income for other purposes

“Europa”

“Europa”

February 22nd, 2013

About Europa:

• Moon of Jupiter
• 6th closest moon of Jupiter
• Smallest of Jupiter’s 4 Galilean satellites
• Discovered in 1610 by Galileo Galilei
• Slightly smaller than Earth’s Moon

Composition:

• - Primarily made of silicate rock
• - Likely has an iron core
• - Thin atmosphere composed mainly of oxygen
• - Surface is composed of water ice and is one of the smoothest in the Solar System.

Time Line:

• 1610 – Discovered by Galileo Galilei
• 1979 – Studied by the Voyager mission
• 1989 – The Galileo mission was launched which provided the bulk of the present data that we have on Europa.
• 2022 – JUICE (Jupiter Icy Moon Explorer), the next mission to Europa by the European Space Agency.

“Europa” is most promising in habitability in universe after Earth: NASA
As per NASA, Jupiter’s sixth closest moon Europa is the most likely heavenly body in the universe beyond the Earth that could be habitable. Europa which bears an ocean, a thin shelf of ice and oxidants on its surface is far more likely to be habitable than the desert-covered Mars, which has been the focus of recent exploration.
Europa’s evident youth and smoothness of the surface have led to the theory that a water ocean exists underneath it, which could possibly be a home for extraterrestrial life.
This theory suggests that the heat energy from tidal flexing is the reason behind the ocean to stay in liquid state and causes geological activity very similar to the plate tectonics.
Mission “Clipper”:

• NASA is planning a new $2-billion exploration project called “Clipper”.
• The mission follows the success of Cassini, a probe that closely explored Titan, a moon of Saturn.
• NASA will send a spacecraft to Jupiter’s orbit and conduct a number of fly-bys to study Europa in its entirety.
• Clipper could be launched by 2021 and would take a further three-six years to reach Europa.

* As per scientists, Enceladus, the 6^th largest moon of Saturn, could also be habitable.

Mercury Treaty

Mercury Treaty

February 22nd, 2013

Mercury treaty to be adopted by 140 countries
Around 140 nations will adopt the world’s first legally binding treaty on mercury.
Objective: The Treaty aims at reducing global emission levels of the toxic heavy metal also known as quicksilver, which poses risks to human health and the environment.
Nations will be asked to ink the treaty next October in Minamata, Japan, in honour of the town’s inhabitants who for decades have suffered the consequences of serious mercury contamination.
Where is Mercury found?
Mercury is found in products ranging from electrical switches to thermometers to light-bulbs, to amalgam dental fillings and even facial creams, and large amounts of the heavy metal are released from small-scale gold mining, coal-burning power plants, metal smelters and cement production.
What are the hazards of mercury?
Mercury poisoning affects the body’s immune system and can lead to problems including psychological disorders, loss of teeth and problems with the digestive, cardiovascular and respiratory tracts. It also affects development of the brain and nervous system and poses the greatest risk to fetuses and infants.
As per United Nations Environment Programme (UNEP) report:

• In the past 100 years, man-made emissions have raised the mercury concentrations in the top 100 metres of the world’s oceans to double.
• Concentrations in deeper waters have increased by up to 25%.
• Much human exposure to mercury is through the consumption of contaminated fish.
• Around 200 tonnes of the substance are deposited in the Arctic every year.
• Developing countries were especially vulnerable to direct mercury contamination mainly due to the extensive use of the element in small-scale gold mining and to the burning of coal for electricity generation.

‘Gwadar Port’ and ‘Chabahar port’

February 22nd, 2013

China assumes control of Gwadar Port
China has taken control of Pakistan’s Gwadar Port located at the mouth of the Persian Gulf just outside the strategically important Strait of Hormuz. Previously, the control of the port was with Port of Singapore Authority (PSA) which was recently transferred to the China Overseas Port Holding Company.
Gwadar Port

• Why the port offered to China?
• What are the Advantages and Disadvantages for China?
• What Pakistan gets here?
• Why India is concerned?

Chahbahar Port

• Why Afghanistan needs to use port of Iran?
• Strategic location of Chabahar port.
• What is the India’s role in this whole gambit?
• Why the deal b/w Iran and Afghanistan will be a win-win situation for Afghanistan, India, Iran and also for US?
• But, what India may lose in this ploy?

China assumes control of Gwadar Port: Pakistan has handed over the operations responsibility of its strategically located Gwadar port to China’s Overseas Port Holdings. Previously it was with Singapore’s PSA (Port of Singapore Authority) International.
The port which has been bragged as Pakistan’s biggest infrastructure project, has failed as a business venture till date because the security situation in Balochistan discouraged PSA from investing in the development of the port and off-shore infrastructure. Besides, the government had also failed to transfer 584 acres under Navy’s possession to the port.
All these reasons forced PSA to move out of the 40-year management, operation, maintenance and development contract. The issue of land transfer is still unresolved despite the federal and provincial governments offering land elsewhere in lieu to the Navy.
Why the port offered to China?
There occurred some discords b/w the PSA International and Pakistani navy over land transfers, security issues and lack of infrastructure which led to PSA withdrawal from the contract.
What are the Advantages and Disadvantages for China?
Handling operations of Gwadar port will be not easy for due to the worsening security situation in Balochistan opposition fron Baloch people. The turbulence in Afghanistan which is going through transition is also likely to affect it. Gwadar was built by China but during its operation by PSA, it barely attracted any commercial traffic. There is also a lot of port development that remains to be built.
China can use the port to transport fuel into northwestern China, by transporting oil and gas from the port through pipelines that traverse Balochistan and the federal agencies to feed into China’s Xinjiang province. As China’s oil imports increase, it would prefer to insulate its energy transports from the troubled waters of the Straits of Malacca and the South China Sea.
China transports 60% of its oil through the Straits of Hormuz. Having Gwadar under its command would change the security dynamics for China.
Furthermore, if we go by the strategic perspective of ‘String of Pearls’then the move will strengthen China’s objective to have an ideal staging ground for its ships. China already has a firm bearing in Sri Lanka’s Hambantota port, it is attracting Maldives, though no port presence is planned yet. China is also creating a port in Chittagong, Bangladesh, as well as Sonadiya, near Cox’s Bazar.
What Pakistan gets here?
Pakistan expects China to develop the port further and turn it into a naval base.
Why India is concerned?
This development in Pakistan may have significant implications for India as the country thinks it is China’s attempt to encircle India (String of Pearls) and gain strategic advantage in the region. India has apprehensions that these ports could be used for military purpose as well.
It may be to counter this India has bolstered its relations with Oman,though there is no security presence there yet. India has been stressing to develop the Iranian port of Chahbahar.
About Chahbahar Port:
Afghanistan and Iran inked an agreement which will permit Afghanistan to use Iran’s south-eastern Chabahar port for shipments and trade.
Why Afghanistan needs to use port of Iran?

• Afghanistan is a landlocked country thus it needs to use Iran’s port for its shipments and trade.

Strategic location of Chabahar port

• Chah Bahar is Iran’s southernmost city.
• Iran’s closest and best access point to the Indian Ocean.
• It is the only Iranian port with direct access to ocean.
• For this reason, Chabahar is the focal point of Iran for development of the east of the country through expansion and enhancement of transit routes among countries situated in the northern part of the Indian Ocean and Central Asia.
• Chabahar is just 72 km west of Pakistans Gwadar Port, being built with Chinese help.

What is the India’s role in this whole gambit?

• A plan being finalized by India to construct a 900-km railway line that will connect Chabahar port in Iran, being built with Indian assistance, to the mineral-rich Hajigak region of Afghanistan.
• When finished, this line will throw up both geo-political and economic opportunities for India.

Why the deal b/w Iran and Afghanistan will be a win-win situation for Afghanistan, India, Iran and also for US?
Afghanistan:

• Access to the sea.
• Decrease in dependence on Pakistan.
• This will resolve trade related transit issues of Afghan traders and thus promote trade and commerce.

India:

• Increase in Indian influence in Afghanistan.
• Increase in strategic presence of India in the region.
• It will open opportunities for Indian companies to explore Afghanistans mineral wealth, believed to be worth $1-3 trillion, for mutual benefit.
• It will add to the economic rationale for Indian investment in Chabahar.
• Once the entire network comprising of road, rail and port is in place, it can become a launching pad for greater economic and strategic involvement of India in the oil and mineral-rich Central Asia.

(Behind the curtains):

• It is believed that the Chabahar port is being financed by Indian government in order to maintain Iranian and Indian influence in Afghanistan after US forces leave Afghanistan in 2014.
• It is also believed that this is a move by India in order to counter Gwadar port of Pakistan.

Iran:

• Business opportunities for Iran as its facilities are used.
• Chabahar port being built with Indian assistance
• Iranian influence in Afghanistan increases.

US:

• Relieves the pressure on the US-backed Afghan Government to rely on trade routes via Pakistan, as relations b/w US and Pakistan have seen substantial restrains in recent times.
• The agreement b/w Iran and Afghanistan will assist Afghan traders including those directly working with US contracting companies as they will now be able to use the south-eastern port – Iran’s only port with direct access to the sea – for importing and exporting goods.
• Relief to US/NATO officials as the shutdown of NATO supplies from Pakistan has induced enormous setback in terms of finance to US/NATO.

So, except Pakistan which looses business in the process, it is a win-win situation for all.

But, what India may lose in this ploy?

• Nevertheless, India’s larger collaboration with Iran in Chabahar (and, presumptively, in other areas) will more or less surely disturb US, whose support is necessary if India is to play a greater role in the region.

 

Goal-line technology to be adopted in 2014 FIFA World Cup

Goal-line technology to be adopted in 2014 FIFA World Cup

February 22nd, 2013

World football’s governing body FIFA has announced that goal-line technology will be used during the 2014 World Cup in Brazil.
Why is ‘Goal-line technology’?

• A method to determine whether the Football has completely crossed the goal line or not.
• This is done using electronic devices.
• This technology will assist the referee in taking the final decision that whether it was a goal or not.
• On 5 July 2012, IFAB officially approved the use of goal line technology.
• FIFA has already approved two systems – Hawk Eye and GoalRef. The Hawk Eye system, used in cricket and tennis, involves the strategic placing of cameras from different points within the stadium while GoalRef uses an electronic chip inside the ball.

Criticism: The Critics (many from the FIFA itself) have pointed out that use of such a technology would affect the human element of the game and eliminate the joy of debating mistakes.

Dongria Kondh tribe

Dongria Kondh tribe

February 21st, 2013

MoEF justifies cancellation of environmental clearance to Vedanta
The Ministry of Environment and Forests (MoEF) has held that its decision of cancellation of the environmental clearance granted to Vedanta for the Lanjigarh Bauxite mining project in Odisha was right and that forest land cannot be diverted under the provisions of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006.
As per MoEF, the diversion of forest land on the proposed mining site of the Lanjigarh bauxite mining lease is violative of the fundamental rights of the Dongria Kondh tribals as well as the spirit of Forest Rights Act especially for the vulnerable tribal groups such as the Dongria Kondh and thus cannot be allowed for this reason alone.
As per Govt. the Lanjigarh bauxite mining lease is located in Scheduled Areas as referred to in Clause (1) of Article 244 of the Constitution. Circumscribing or extinguishing of forest rights in such areas shall not be in conformity with the provisions of the clause-5 of the Fifth Schedule to the Constitution.
About Dongria Kondh tribe:
The Dongria Kondh, a primitive tribal group [now termed as particularly vulnerable tribe], has been protecting more than 7 sq. km. of the sacred undisturbed forests on top of the mountain, where the proposed mining lease area of the Lanjigarh bauxite mining lease is located. They consider the land and forests sacred to their deity. Diversion of these sacred areas for mining will undermine the customary rights of the Dongria Kondhs to protect their sacred places of worship and thereby amount to a violation of their fundamental right to manage their own affairs in the matter of religion and fundamental right to conserve the culture of their own. It was also in direct violation further of the specific provisions of the Forest Rights Act.

NASA discovers ‘Youngest Black Hole’ in Milky Way:

NASA discovers ‘Youngest Black Hole’ in Milky Way:

February 21st, 2013

NASA has claimed to have discovered the youngest black hole, named W49B, in Earth’s galaxy or the Milky Way.
The black, located within a supernova remnant, was formed by a rare supernova explosion of a massive star. The agency’sChandra X-ray Observatory captured its images which is located 26,000 light-years away.
The remnant is estimated to be about 1,000 years old. It is very young as compared to the average age of a black hole in the Milky Way which ranges b/w 17,000 and 21,000 years. The agency is still to confirm the event.
The formation of this black is very unusual as most supernova lead to the formation of a neutron star (a small and highly dense body comprised almost entirely of neutrons). These neutron stars are identified by their unique X-ray characteristics which were not found in W49B indicating that it has instead formed a black hole.

Severe extinction threat to various Indian reptiles

Severe extinction threat to various Indian reptiles

February 21st, 2013

As per an analysis of Zoological Society of London along with IUCN species survival commission:

• 19% of turtles, lizards, snakes, crocodiles and other reptiles were facing severe threat of extinction.
• One out of every five out of 10000 species of reptiles in the world, many of which are from India, is facing a threat of extinction.
• Out of the endangered species are the King cobra, Indian crocodile (mugger), South Andaman krait and four kinds of turtles namely, Red-crowned Roofed Turtle, Bengal Roof Turtle, Jaggedshelled turtle and Hawksbill turtle. These species were identified to be extinct forever.
• There is no information about conservation status of around one in every three reptiles in India.
• 30% of the freshwater reptiles were almost close to extinction.
• 50% freshwater turtles are close to extinction. These reptiles are affected by international and national trade.
• 15% reptiles in Indo-malayan region were threatened.
• Out of 1500 species samples in the study, 112 were from India.
• Out of these 1500 species, 12.2% had threat of extinction.

Value of currency note has not increased with inflation: RBI

Value of currency note has not increased with inflation: RBI

February 21st, 2013

As per a RBI study, the average value of a currency note did not keep pace with inflation in the past four decades.
As per the study:

• There has been only eight fold increase in the average value of a currency note (for denominations of Rs 10 and above) while there was a 18-fold rise in the inflation.
• The evolving denominational distribution of currency notes, even with the introduction of higher denomination notes (Rs 500 and Rs 1,000) was not commensurate with the underlying demand for the various denominations necessitated by the inflation path.
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• Implication: A consumer would need to carry a much larger number of currency notes than was the case earlier to purchase the same volume of goods and services.
• Due to inflation, there has been a decline in the average real value of a currency note of Rs 10 and above (Base: 1971-72) from Rs 21.6 in 1971-72 to Rs 5.8 in 1997-98 before a modest rise to Rs 8.9 in 2008-09.

Possible factors behind such trends in the denominational pattern of currency circulation:

• Presence of only two government note printing units at Nashik and Dewas till the setting up of two more note presses in Mysore and Salboni in 1995-96.
• Use of alternative payment channels such as cheques, credit/debit cards and internet banking which are not only more efficient instruments than paper currency but also leave paper/electronic trails facilitating tax audit.
• The possibility of use of high denomination notes for black economy transactions and the demonetisation of Rs 1,000 and higher denomination notes in 1978 to curb hoarding/circulation of black money.

Meteor hits Earth outside Chelyabinsk city in Russia

Meteor hits Earth outside Chelyabinsk city in Russia

February 20th, 2013

A meteor which was about 17 metres across and weighed 10,000 tons impacted Earth nearly 30 to 50 km above the ground near Russian city Chelyabinsk. The meteor is also being said as the largest celestial body to have hit the Earth over the past hundred years. Shock waves from its explosion over Chelyabinsk injured 1,200 people and shattered doors and windows of houses, schools and hospitals.
As per NASA, the tiny asteroid released 300 to 500 kilotons of energy when it exploded, which is roughly equivalent to 20 atomic bombs of the type dropped on Hiroshima and Nagasaki. This makes the meteor the largest since 1908 when a 50 meter wide meteor hit Tunguska in Siberia, levelling an estimated 80 million trees. The energy of the Tunguska blast is estimated to have been up to 50 megatons.
In response to this event scientists have called for the need to develop sophisticated meteor warning system. Presently, we can detect only 10% objects of the size of Chelyabinsk meteor in the solar system.
What is an asteroid?

• An asteroid is a small rock in orbit around a star – a bit like a tiny planet.

What are meteoroids?

• Small pieces of space debris such as parts of asteroids or parts of comets on a collision course with earth are called meteoroids.

What are meteors and meteorites?

• When meteoroids enter the earth’s atmosphere they are called meteors. Most meteors burn up in the atmosphere, but if they survive and strike the surface of the earth they are called meteorites.

What is a comet?

• A comet is an object consisting of a central mass surrounded by dust and gas that may form a tail, orbiting a star, usually in an eccentric orbit.

‘Letter of Comfort’

‘Letter of Comfort’

February 20th, 2013

‘What is ‘Letter of Comfort’?

• A comfort letter is a document prepared by an accounting firm assuring the financial soundness or backing of a company.
• This letter is issued by a parent company to a lending institution in which it acknowledges its support of a subsidiary company’s attempt for financing.
• A letter of comfort does not imply that the parent company guarantees repayment of the loan being sought by the subsidiary company.
• It merely gives reassurance to the lending institution that the parent company is aware of the credit facility being sought by the subsidiary company, and supports its decision.
• As such, a letter of comfort creates a moral obligation for the parent company rather than a legal one.

News: The Finance Ministry has issues  “Letter of Comfort” sanctioning Rs 25,000 crore additional cash subsidy
To compensate the revenue loss incurred by the state-owned fuel retailers on selling auto and cooking fuel below cost this fiscal, the government has decided to pay them Rs 25,000 crore additional cash subsidy. The Finance Ministry has issued a “comfort letter” to Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) sanctioning Rs 25,000 crore for part of the revenue they lost on selling diesel, domestic LPG and kerosene below cost. Earlier, the government had shelled out Rs 30,000 crore in subsidy.
Losses incurred by Oil Companies: IOC, BPCL and HPCL lost Rs 39,268 crore in revenue on selling diesel, LPG and kerosene at government controlled rate in October-December quarter. Fuel retailers currently lose Rs 9.22 a litre on diesel, Rs 31.60 per litre on kerosene and Rs 481 on every 14.2-kg LPG cylinder. They lose Rs 443 crore per day of sale of the three fuels.
Cash subsidy is paid by the Finance Ministry to state oil retailers who sell crude oil and products like LPG products at a discount.

MCX-SX starts trading

MCX-SX starts trading

February 16th, 2013

India’s new stock exchange MCX-SX has started trading in equities, competing against the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
MCX-SX is the third national equity market trading platform. MCX-SX started trading in the shares of 1,116 listed companies.
India’s oldest stock exchange BSE has 5,191 firms on its list.
There are 1,665 companies listed on the National Stock Exchange that started trading in 1994 and has now emerged as the largest stock exchange in the country.
The benchmark index for the MCX-SX is called SX-40, just like BSE Sensex and NSE Nifty.
About SX-40 index:

• A free-float based index of 40 large-cap and liquid stocks, representing diverse sectors of the economy.
• Base value: 10,000
• Base date: March 31, 2010
• The index will measure the economic performance with better representation of various industries and sectors based on ICB, a leading global classification from Britain’s FTSE.

Iran test fires cruise missile "Ghader"

Iran test fires cruise missile "Ghader"

February 16th, 2013

Iran test-fired a surface-to-surface cruise missile named “Ghader”, which means Capable in Farsi, in international waters near the Strait of Hormuz.

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• About “Ghader”:
• Surface-to-surface, ground-to-ship cruise missile
• Range of 200 kilometres
• Highly advanced with radar, satellite communications, precision in target destruction, as well as range and radar-evading mechanism

Iran’s war games ‘Vilayat-90’ and the missile firing are being perceived as a practice exercise for closing the Strait of Hormuz if the West were to block Iran’s oil sales. The US and the EU is considering imposing more sanctions on the sale and purchase of Iran’s oil to make the country financially weak to thwart Iran’s nuke program.
Where is Strait of Hormuz?
It is a narrow strait located b/w the Gulf of Oman and the Persian Gulf. Iran borders the Strait of Hormuz to the north, and the United Arab Emirates and Oman’s Musandam Peninsula border it to the south.
Importance: Much of the Persian Gulf relies on the Strait of Hormuz to export its petroleum and reach the ocean, making it one of the world’s most important oil supply routes.

Asteroid 2012 DA14

Asteroid 2012 DA14

February 16th, 2013

Asteroid 2012 DA14 fly-by closest to Earth
Newly discovered asteroid 2012 DA14 flew by closest to Earth.

• DA14 is the largest known object of its size which passed this close without making any impact.
• It shot past in a south-north direction above Earth on Feb 15-16, 2013.
  
• About 2012 DA14
  It is a near near-Earth asteroid with an estimated diameter of 50 meters (160 ft) and an estimated mass of 190,000 metric tons. It was detected in February 2012 by La Sagra Observatory in southern Spain.

The asteroid flashed passed with a speed of 12,427mph (20,000kph) and 18,641mph (30,000kph). It flew inside the orbits of high geostationary satellites some 22,000 miles (35,406km) above the Earth. It is one of the moderate size asteroids which fly past Earth, on average, every 40 years, yet actually strikes our planet only every 1200 years or so. In 1908 a similar sized asteroid exploded in the atmosphere above Siberia and leveled hundreds of square miles of forest.

• How its observations will help?
  It will help scientists to determine its minerals and spin rate.
• The information will also help in plotting DA14′s future visits and also aid in development of techniques to prevent future asteroids.

Priority sector lending (PSL)

Priority sector lending (PSL)

February 16th, 2013

Priority sector lending (PSL) by public sector banks to minorities to minorities surpassed 15% mark.
Priority sector lending by public sector banks to minorities has increased from 10.6% in 2007-08 to 15.01% in 2012-13 with a total lending of Rs 1,71,960.71 crore to minorities. Priority sector lending to minorities is one of the schemes covered under prime minister’s new 15 point programme for the welfare of minorities.
What is Priority Sector Lending?
Priority Sector Lending is an important role given by the Reserve Bank of India (RBI) to the banks for providing a specified portion of the bank lending to few specific sectors like agriculture or small scale industries. Basically this is meant for all round development of the economy apart from only focusing on the financial sector.

Are there minimum limits?
The limits are prescribed according to the ownership pattern of banks. While for local banks, both the public and private sectors have to lend 40 % of their net bank credit, or NBC, to the priority sector as defined by RBI, foreign banks have to lend 32% of their NBC to the priority sector.
Are there specific targets within the priority sector?
Domestic banks have to lend 18 % of NBC to agriculture and 10 % of the NBC has to be to the weaker section. However, foreign banks have to lend 10 % of NBC to the small-scale industries and 12 % of their NBC as export credit. However, for the balance, there are a vast number of sectors that banks can lend as priority sector. The Reserve Bank has a detailed note of what constitutes a priority sector, which also includes housing loans, education loans and loans to MFIs, among others.
What if a bank does not achieve priority sector lending targets?
Domestic banks having a shortfall in lending to priority sector/ agriculture are allocated amounts for contribution to the Rural Infrastructure Development Fund ( RIDF ) established in NABARD. In case of foreign banks operating in India, which fail to achieve the priority sector lending target or sub-targets, an amount equivalent to the shortfall is required to be deposited with SIDBI for one year.

Special Purpose Vehicle (SPV)

 Special Purpose Vehicle (SPV)

February 16th, 2013

Cabinet approves setting up of SPV for TAPI gas pipeline
The Union Cabinet has given nod to set up the Special Purpose Vehicle (SPV) for the $9-billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project. It has also granted permission to GAIL (India) to join the SPV.
The Dubai-based SPV, TAPI Ltd., will scout for consortium leader, who will develop and operate the project, arrange finances and be accountable for safe supply of gas through the pipeline.
TAPI Ltd. needs an initial contribution of $20 million, that is, $5 million from an identified entity from each of the four-participating countries. All four nations have inked an Inter-Governmental Agreement (IGA) along with a Gas Pipeline Framework Agreement (GPFA) which includes necessary provisions for security and safety of the pipeline.
Now lets see:

• What is an SPV?
• What is the difference between a company and an SPV?
• How an SPV is set up?
• What are the benefits of creating an SPV?

What is an SPV?
SPV is the acronym for Special Purpose Vehicle which is also called Special Purpose Entity. An SPV is primarily a business association of persons or entities eligible to participate in the association meant for a single, well-defined and narrow lawful purpose. No SPV can be formed for an unlawful purpose, or for undertaking activities which are contrary to the provisions of law or public policy. An SPV is very similar to a company which is mainly formed to raise funds by collateralizing future receivables.
What is the difference between a company and an SPV?
Although both these entities are established as per Company Act and also follow the all the regulations in the Company Act, the difference lies in the purpose. The company, as distinguished from an SPV, may be called a general purpose vehicle. A company may do several things which are mentioned in the memorandum of association (MoA) or permitted by the Companies Act. An SPV may also do the same, but its scope of operation is limited and focused. The MoA is quite narrow in the case of an SPV. This is primarily to provide comfort to lenders who are concerned about their investment.

How an SPV is set up?
An SPV is set up with the help of its promoter(s) or sponsor(s). The sponsoring company diverts some of its assets from the rest of the company into an SPV. This isolation of assets creates a distance b/w the SPV and the sponsoring company which is important as it provides comfort to investors by almost insulating the SPV from the ups and downs of the originating entity. What is significant here is the distance b/w the sponsoring company and the SPV. In the absence of adequate distance b/w the sponsor and the new entity, the later will not be an SPV but only a subsidiary company. A good SPV should be able to stand on its feet, independent of the sponsoring company. Unfortunately, this does not happen in practice.

What are the benefits of creating an SPV?
The key advantage is that it helps in separating the risk and freeing up the capital. As a result, the SPV and the sponsoring company are protected against risks like insolvency, which may arise during the course of operation. The SPV also allows securitization of assets without disturbing the managerial relationship. Under the arrangement, any predictable income stream generated by secure assets can be securitized.

PMGSY upgraded to include left-out habitations

PMGSY upgraded to include left-out habitations

February 14th, 2013

The Union Cabinet has given its approval to the following regarding Pradhan Mantri Gram Sadak Yojna (PMGSY):
(i) Revision of the Core Network by including:

• 2,687 left-out unconnected habitations in Tribal (Schedule-V) areas and blocks adjoining the international border under the Border Area Development  Programme (BADP). New connectivity will also be provided to these habitations, at an estimated cost of Rs. 5,929 crore and  certain roads measuring about 2,000 km in these areas will be upgraded at an estimated cost of Rs.1,000crore.
• 1,410 left out unconnected habitations with population of 250 persons and above in the 10 Hill States and desert areas (as identified under the Desert Development Programme (DDP)) to provide new connectivity to these habitations, at an estimated cost of Rs. 8,551 crore.
• 9,112 left out unconnected habitations with population of 500 persons and above in plain areas to provide new connectivity to these habitations, at an estimated cost of Rs.13,850 crore.

(ii) Extension of the cluster approach from international border blocks to international border districts of the State of Arunachal Pradesh,  by clubbing the  population within a path distance of 10 km, and treating as a cluster for eligibility and to provide new connectivity to 126 habitations at an estimated cost of Rs.1,200 crore.
(iii) ‘In principle’ approval for covering unconnected habitations with population of 100 persons and above in the Left Wing Extremists affected blocks with a limited provision to complete missing links, to form closed loops from through routes of the core network at an estimated cost of Rs. 8,000 crore.
About PMGSY
The programme was launched in the year 2000 and with the objective of providing all-weather road connectivity to all unconnected habitations with population of 500 persons and above 250 persons and above in hilly states, desert areas (as identified under DDP), Tribal Schedule-V areas and 82 selected tribal and backward districts as identified under Integrated Action Plan  in rural areas of the country.
Current status:
The net number of total eligible unconnected habitations are 1,64,849. The total cost of sanctioned projects, including the projects for upgradation of roads under PMGSY is Rs.1,42,945 crore. A total of 3,66,789 km roads including upgradation have been constructed till December 31, 2012 and all-weather connectivity has been provided to 89,382 habitations.
Govt considers enhancing NABARD capital base to Rs 20,000 crore. The government is cogitating to expand the capital base of India’s apex farm development bank National Bank for Agriculture and Rural Development (NABARD) to Rs 20,000 crore from existing Rs 5,000 crore.
The increase in authorised capital will augment the operations and broaden the activities of NABARD. Following these changes NABARD would be able to undertake short term lending operations and introduce new credit products.

Rajiv Gandhi Equity Savings Scheme (RGESS)

February 13th, 2013

RGESS schemes to become more investor-friendly – Finance Minister P. Chidambram
Finance Minister P. Chidambaram has expressed the need revisit the Rajiv Gandhi Equity Savings Scheme (RGESS) to make its provisions more retail investor-friendly. It was felt by the minister that the in current form the scheme is too complex for the small investor to understand and that complying would be difficult. He is expected to bring necessary changes to in the coming Budget.
More about RGESS:

Union Government has approved the new Tax saving scheme called the ‘Rajiv Gandhi Equity Savings Scheme”, with a view to provide tax benefits. The scheme is exclusively for first time retail investors in the securities market with annual income of below 10 lakh rupees in a financial year. The maximum investment permissible under the scheme is 50 thousand rupees and the investor would get a 50 per cent deduction of the amount invested from the taxable income for that year. The scheme will not only encourage the flow of savings and improves the depth of domestic capital markets, but also aims to promote an equity culture in the country. To benefit the small investors, the investments are allowed to be made in instalments in the year in which tax claims are made.
Important features of the Scheme:
Retail investors participating in this scheme will be identified on the basis of their PAN numbers. This includes those who have opened the Demat Account but have not made any transaction in equity and /or in derivatives till the date of notification of this Scheme and all those account holders other than the first account holder who wish to open a fresh account.

• Investors of the scheme should have annual taxable income is ≤ Rs. 10 lakhs.
• Rs 50,000 is maximum Investment permissible limit and the investor would get a 50% deduction of the amount invested from the taxable income for that year.
• Stocks listed under the BSE 100 or CNX 100, or those of public sector undertakings which are Navratnas, Maharatnas and Miniratnas would be eligible. Follow-on Public Offers (FPOs) of the above companies would also be eligible under the Scheme. IPOs of PSUs, which are getting listed in the relevant financial year and whose annual turnover is not less than Rs. 4000 Crore for each of the immediate past three years, would also be eligible.
• Exchange Traded Funds (ETFs) and Mutual Funds (MFs) that have RGESS eligible securities as their underlying and are listed and traded in the stock exchanges and settled through a depository mechanism have also been brought under RGESS
• Investors can make the investments in installments in the year in which tax claims are made.
• 3-year is the total lock-in period for investments including an initial blanket lock-in period of 1 year, commencing from the date of last purchase of securities under RGESS.
• After the first year, investors would be allowed to trade in the securities in furtherance of the goal of promoting an equity culture and as a provision to protect them from adverse market movements or stock specific risks as well as to give them avenues to realize profits.
• Investors should maintain their level of investment during these 2 years at the amount for which they have claimed income tax benefit or at the value of the portfolio before initiating a sale transaction, whichever is less, for at least 270 days in a year. The calculation of 270 days includes those days pursuant to the day on which the market value of the residual shares /units has automatically touched the stipulated value after the date of debit.
• The general principle under which trading is allowed is that whatever is the value of stocks / units sold by the investor from the RGESS portfolio, RGESS compliant securities of at least the same value are credited back into the account subsequently. However, the investor is allowed to take benefits of the appreciation of his RGESS portfolio, provided its value, as on the previous day of trading, remains above the investment for which they have claimed income tax benefit.
• For the purpose of valuation of shares, the closing price as on the previous day of the date of trading will be considered so that new investors are certain about their debits and credits into the account.
• The tax benefit will be withdrawn if the investor fails to meet the stipulated conditions.

Similar to other financial products (post office savings, life insurance policies etc.) which provide tax benefits to the retail investors, this tax break for direct investment in equity is expected to encourage the retail participation in securities market as well as to enhance their participation in the growth of Indian industry. Entry of more retail investors are expected to further deepen the securities markets as they bring in long-term stable funds, which can counteract the volatility created by the liquidity providers of the market. The Scheme, thus, also promotes the goal of financial stability and is in furtherance to financial inclusion. Since Exchange Traded Funds and Mutual Funds have also been brought under the Scheme, the Scheme is expected to provide encouragement and re-assurance to the first time investors.
Finance Minister P Chidambaram had approved the RGESS on September 21, 2012.

• Implementation delayed due to the deliberations on inclusion of Mutual Funds (MF) in it. Thus, further consultations with the RBI, SEBI and the law ministry on the coverage of RGESS.
• It might be so that only MFs fitting in specific conditions would be allowed.
• Tax benefits for investing up to Rs 50,000 in the capital markets for first-time retail investors with an annual income of Rs 10 lakh.
• The scheme initially announced in Budget 2012 had allowed tax benefits for investments in stocks. Later, Exchange Traded Funds (ETFs) and MFs were included under its ambit.
• Open to retail investors who have opened demat accounts but have not made any transactions in equity or derivatives till the notification of the scheme.
• All those opening fresh accounts would also be eligible to participate in RGESS.
• Investments can be made in various installments during a year,
• Total lock-in period: 3 years, including an initial lock-in of one year in the stock/ETF/MF in which the money has been invested.
• Stocks listed under BSE 100 or CNX 100 or those of PSUs which are Navratnas, Maharatnas and Miniratnas would be eligible.
• Investment in follow-on offers of these companies would also be eligible for tax deduction.
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India, Austria ink Social Security Agreement

India, Austria ink Social Security Agreement

February 12th, 2013

India signed a Social Security pact with Austria. As per the pact, the Indian professionals working in Austria would be exempted from paying the social security contribution of the country, if such payments are already made in India.
This agreement would also enhance cooperation in labor market expansion in Austria which has more than 17000 Indian professionals.
What are the Salient features of the agreement?
What is social security contribution?

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• Salient features of the agreement: Indians working in Austria on short-term contracts of up to 5 years are exempted from paying social security contribution in Austria if they continue making the payments in India.
• The workers sent by an Indian company from a third would also be eligible for the relief.   
• The benefits of social security to Indian workers would also be exportable in case they relocate to India once his/her service term in Austria ends. The same benefits will be extended to self employed Indians on relocation to India.
• India already have signed similar pacts with nations like Czech Republic, Belgium, Germany, France, The Netherlands, Switzerland, Hungary, Luxembourg, Denmark, South Korea, Finland, Canada, Norway and Japan.

What is social security contribution?

• Social security contribution is similar to India’s Employees Provident Fund (EPF).  As per Indian Labour Law, it is mandatory for every employer and employee who falls under the umbrella of Employees Provident Fund Act 1952 to make contribution towards the provident fund. Likewise, Austria has a mandatory contribution fund known as Social Security. In the absence of this pact, the Indian workers in foreign nations paid social security tax in the countries of their stay although they contributed there part in India.

AWACS

February 13th, 2013

Union Cabinet nod to DRDO for developing AWACS
The Defence Research and Development Organisation (DRDO) has received approval from the Union Cabinet of India for developing an indigenous Airborne Early Warning and Control System (AWACS) for IAF.

What is AWACS?

AWACS stands for Airborne Warning And Control System that helps the Air Force detect incoming missiles and enemy aircraft from across the country’s border.

• AWACS is described as an ‘Eye in the Sky’ as it can carry out surveillance at about 400-km range under all-weather situations, and to lock on to 60 targets at a time simultaneously.
• They are capable of detecting hostile aircraft, cruise missiles and other incoming aerial threat far before ground-based radars at a cost of over $800 million soon.

How does it work?

• It is basically an aircraft fitted with sophisticated radar and can be said to be radar on the move.
• It can provide advance warning about enemy’s intrusion into country’s air space.
• It can also track and attack enemy’s targets in air. India has an agreement with Israel for supply of its awacs called phalcon.
• Recently, it was reported that India will order another two advanced Israeli Phalcon AWACS.

What is India-Israel AWACS Deal?

• The new “draft contract” for the two new AWACS “is now finally in the final stages of being examined” before it’s inked as a follow-on order to the $1.1-billion tripartite agreement among India, Israel and Russia in 2004, under which IAF inducted three Phalcon AWACS in 2009-10.
• The purchase comes at a time when Pakistan is fast snapping at India’s heels in this complex military arena, having first inducted four Swedish Saab-2000s and on the verge of getting four Chinese ZDK-03 AWACS.

India and AWACS:

• India’s tryst with AWACS has been beset with several problems. First, delivery of the first three AWACS , which have the Israeli 360-degree Phalcon early-warning radar and communication suite mounted on Russian IL-76 heavy-lift military aircraft, was delayed by over two years.
• Then, there were major teething problems in them getting fully operational, with the Phalcons even being grounded at Agra for some time.

Importance of Phalcons:

• The Phalcons significantly boost the effectiveness of both offensive and defensive operations. Their enhanced detection and interception capability, connected to fighters and surface-to-air missile systems, are tremendous force-multipliers.
• Apart from detection of incoming cruise missiles and aircraft from over 400-km away in all-weather conditions, and direction of air defence fighters during combat operations, the Phalcons while flying well within Indian airspace can also monitor troop build-ups or activity at airbases and missile silos deep inside Pakistan.

Researchers discovered world’s largest prime number

Researchers discovered world’s largest prime number

February 12th, 2013

Researchers have discovered the world’s largest prime number which consists of over 17 million digits.

• The number has now shot up to 2 multiplied by itself 57,885,161 times minus 1.
• The finding was made as part of the Great Internet Mersenne Prime Search (GIMPS).

What is GIMPS?

• GIMPS is a distributed computing project designed to discover a particular kind of prime number first identified in the 17th century.
• All prime numbers can only be divided by themselves and 1.

What are Mersenne prime numbers?

• The Mersenne prime numbers are rare which occur in the form 2 multiplied by itself p times minus 1, where p is itself a prime number. Thus its general form is 2^p-1.
• The latest finding is only the 48^th  Mersenne prime ever found and the 14th discovered by GIMPS.

Dell ready to become private in $24 billion deal

Dell ready to become private in $24 billion deal

February 11th, 2013

PC manufacturer Dell is ready to go private in a $24.4-billion buyout. The company which is facing slump will pay its stockholders $13.65 per share to leave the company on its own. The company will be sold to a group of investors that includes investment firm Silver Lake. Once this is done, DELL will stop trading on the NASDAQ.
Dell did rapid growth through the 1990s which brought its founder Michael Dell into one of the world’s richest people. Michael Dell, who owns nearly 16% stake in the company, will remain the CEO after the sale closes. Dell’s sale is the highest-priced leveraged buyout of a technology company.
What is a “Leveraged buyout (LBO)”?

• LBO = Acquisition of a company (or a part of a company or it can also be single asset like a real estate) using a substantial amount of borrowed money (bonds or loans /  debt) to meet the cost of acquisition.
• The financial buyer (e.g. private equity fund) puts a small amount of equity (relative to the total purchase price) and utilizes leverage (debt or other non-equity sources of financing) to fund the rest of the amount that is paid to the seller.
• LBOs can have many different forms such as Management Buy-out (MBO), Management Buy-in (MBI), secondary buyout, tertiary buyout, etc.

Can LBO be employed in public companies also?

• YES. Though, mostly LBOs occur in private companies, but it can also be employed with public companies.

The +ves of Leveraged buyout::

• In LBO transactions, financial buyers seek to generate high returns on the equity investments and use financial leverage (debt) to increase these potential returns.
• Financial backers of Dell are of the view that it will be easier to engineer a turnaround without having to pander to the stock market’s fixation on whether the company’s earnings are growing from one quarter to the next.
• Taking the company private will leave it without publicly traded shares to attract and reward talented workers or to help buy other companies.

The -ves of Leveraged buyout:

• LBOs need companies to reserve some of their incoming cash to reduce the debt taken on as part of the process of going private.
• The obligations mean Dell will have less money to invest in innovation and expansion of its business.

Equity holders – Risk arises due to significant financial leverage. Interest amount that has to be paid for the debt taken by the company are are "fixed costs" and thus they can in future force the company into default if they not paid.
Debt holders – The debt holders assume the risk of default compared with higher leverage as well, but as they have claims on the assets of the company, they are likely to realize a partial, if not full, return on their investments, even in bankruptcy.
What is “Management Buyout (MBO)”?
MBO is quite similar to a LBO, but the difference is that in an MBO the Management Team of the target company acquires the company instead of a financial sponsor as in case of a LBO.
Example: Mr. Ram is the sole owner of XYZ company. Mr. Ram is now 65 years old and is set to retire in coming months and exit the business. Now, the Higher Management Team at the company believes strongly that the company has good future ahead and so the Management people come together and they buy out the Mr. Ram’s (owner’s) equity in the company and assume control in the XYZ company.

Rising CAD, a major concern: RBI

Rising CAD, a major concern: RBI

January 31st, 2013

The Reserve Bank of India (RBI) has stated that the increasing Current Account Deficit (CAD) has become a major obstacle in relaxing monetary policy. The CAD stood at a record high of 5.4% of GDP in the second quarter of 2012-13. The central bank stressed at the need of using expenditure-reducing policies in addition to expenditure-switching policies to bring CAD down to a more sustainable level of around 2.5 per cent of GDP. The bank’s concerns about Inflation have not dissipated and it has indicated that growth in 2012-13 might fall below the Reserve Bank’s October 2012 projection of 5.8 per cent.

Singer S. Janaki declines Padma Bhushan

Singer S. Janaki declines Padma Bhushan

January 31st, 2013

South-India playback singer Sreeramamurthy Janaki refused to accept Padma Bhushan award announced for her on the eve of 64^thRepublic Day. She did this showing her dissatisfaction over the number of people from South India chosen for Padma awards list for 2013.
Janaki (74) started her singing career with 1957 Tamil film “Vidhiyin Vilayattu”. She has sung more than 15,000 songs in all southern languages and in Hindi.
She has won four National Awards and the prestigious “Kalamamani” state award of Tamil Nadu.

At 105, Ustad Abdul Rashid Khan is the oldest to get Padma Award

At 105, Ustad Abdul Rashid Khan is the oldest to get Padma Award

January 31st, 2013

Hindustani vocalist Ustad Abdul Rashid Khan (105) has become the oldest person to be chosen for this year’s Padma Shri award.
Previously, in 2011, India’s first woman photo-journalist Homai Vyarawala was honoured with the Padma Vibushan at the age of 97. She passed away in 2012. Khan is also a poet who has penned around 2000 compositions under the pseudonym ‘Rasan Piya’.

JJB rejects bone ossification test plea

JJB rejects bone ossification test plea

January 31st, 2013

“The Juvenile Justice Board rejected the police request for his bone ossification test for age determination.”

“The inquiry against the accused who will be 0f 18 years in June 2013, will continue by the Juvenile Justice Board nevertheless as per Section 3 of the Juvenile Justice Act.”

What is bone ossification test?

• Ossification is the process of formation of new bone by cells called osteoblasts. As per scientific evidence, by the age of 25 years nearly all bones are completely ossified in humans. Ossification test is a guess work based on the fusion of joints in the human body b/w birth and age 25. If all joints are fused the person must be of 25yrs of age or older. As per experts that there can be an error of about 2 years in the age determined by the ossification test, but it is still more reliable than ascertaining the age on mere appearance basis. 
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Different ways to tell age of a person:

• School Records
  Methods like Orchodometry which measures testicular volume. The test is available in India.
  Teeth (Forensic experts check teeth first. All molars are up by 18.)
  X-Ray of elbow, hip, knee, wrist, shoulders and collar-bones are taken for bone ossification (hardening) test. Bone age is correlated to chronological age.
  TW3 Test (Tanner-Whitehouse Tests) or Bone Maturation Test – Has been introduced by BCCI to check age fraud in junior cricket. It works out skeletal maturity from hand and wrist bones.
  Telomeres Age determination based on the length of telomeres, the protective cap of chromosomes. Telomere length varies with age.
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•  What does Section 3 of the Juvenile Justice Act say?
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• Section 3 reads: “Where an inquiry has been initiated against a juvenile in conflict with the law or a child in need of care and protection and during the course of such inquiry the juvenile or the child ceases to be such, then, notwithstanding anything contained in this Act or in any other law for the time being in force, the inquiry may be continued and orders may be made in respect of such person as if such person had continued to be a juvenile or a child.”