Saturday, 4 April 2015

4-apr


Iran Nuclear Agreement

1)      The joint comprehensive plan of action(JCPOA) on Iran’s nuclear programme announced by Iran and the EU 3+3 (the United Kingdom, France, Germany along with China, Russia and the United States) is a significant breakthrough that will have long-lasting implications globally.

2)      A “framework agreement” will take forward twin objectives of reducing Iran’s nuclear capabilities for civilian use only, while lifting financial sanctions imposed by the U.N., the European Union and the United States.

3)      Steps to be taken by Iran :

                                i.            ramping down its uranium enrichment capabilities and stockpiles of enriched uranium : bring uranium stocks down from 10,000 kg to 300 kg LEU (low enriched uranium)

                              ii.            reducing the number of centrifuges : Iran will reduce the number of installed centrifuges by two-thirds

                            iii.            allowing for thorough inspections by the International Atomic Energy Agency : All the excess stockpile and nuclear parts will be kept at an IAEA-monitored location

                             iv.            giving up nuclear reprocessing : turn its nuclear facility in Fordow into an R&D facility for 15 years

4)      What will Iran get in return?

Ø  the U.N., the U.S. and the EU will withdraw all sanctions that have crippled the Iranian economy for years

India's response to deal

1)      India hailed the agreement reached between Iran and the P5+1 group — U.S., U.K., France, Russia, China and Germany,  calling it a “significant step” towards a comprehensive settlement.

2)      Problems faced by India due to sanctions :

a)      Even the most normal transactions had become very tedious for Indian businesses, from insurance to raising capital, every deal faced international hurdles.

b)      Extremely high Balance of Trade problems : India and Iran have an annual bilateral trade of about $14 billion. India has been unable to pay Iran about $8.8 billion for oil due to sanctions.

c)      India had to cut its oil imports from Iran, and in March 2015 halted oil imports altogether for the first time in more than a decade in order to keep its international commitments.

3)      Once the deal is finalised, India could stand to benefit greatly :

a)      A significant withdrawal of sanctions,  would benefit our economic engagement greatly

b)      Economists are predicting India-Iran trade could double.

c)      In the short run, the big advantage for India could be a further reduction in the price of oil that India used to source at a much higher quantity pre-2012, when Iran was India’s second biggest supplier.


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Centre extends deadline for implementation of NFSA for third time

1)      The Centre has given another six months to the States for rolling out the National Food Security Act (NFSA).

Ø  The deadline has already been extended twice earlier.

2)      Only 11 States and Union Territories have so far implemented the Act passed in 2013.

Ø  only Punjab, Haryana, Rajasthan, Himachal Pradesh, Madhya Pradesh, Bihar, Chhattisgarh, Maharashtra, Karnataka, Delhi and Chandigarh have so far implemented the Act

3)      NFSA, 2013 aims at providing a legal entitlement to 5 kg of subsidized foodgrains a person per month at Rs 1-3 a kg to two-thirds of the country’s population.

4)      The Centre had warned the States that it would stop the supply of subsidized APL foodgrains if they failed to meet the April deadline.

5)      To ensure proper distribution of PDS supplies,  the Centre had decided to give a fixed cash amount of Rs. 87 per quintal, to be contributed equally by the Centre and the State, to ration shop dealers.

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