Major News and Events of 30 January 2014
What Happened on 30 January 2014
Andhra Assembly rejects bill on Telengana
Sensex dips by 149 points, lowest in 2 months
Motorola sold to Lenovo for just $2.9 billion, Google got it for $12.4 billion
LPG cylinders cap raised from 9 to 12 cylinders
Jayalalitha to face trial for tax evasion: Supreme Court
Finance Minister P. Chidambaram has stated that the US Federal Reserve's decision to reduce the economic stimulus will not be affecting the Indian market. He also specified that this was expected and it should not come as a surprise. The economic stimulus programme has been slashed by $ 10 billion to $65 billion. Chidambaram also stated that the government as well as the RBI will take the necessary steps to see that the financial market is stable. US Federal Reserve will also reduce its purchases of US Treasuries and mortgage bonds equally. Chidambaram also added that $65 billion was still a large amount and would generate a huge amount of liquidity into the world markets and the Indian economy was geared up for the reduction.
The Andhra Pradesh Reorganisation Bill 2013 for assigning statehood to Telangana was rejected today by both houses of the Andhra Pradesh legislature by a voice vote. There were protests by the legislators of Telangana but it was announced in both the houses that the official resolution for rejecting the bill was done and then the houses were adjourned. The resolutions were moved by the Chief Minister N. Kiran Kumar Reddy and the Endowments Minister C. Ramachandraiah. Reddy in the resolution has requested the President not to refer the bill to the Parliament as it was meant to divide Andhra Pradesh. 86 members took part in the debate. The official records will be presented before the President of India who had referred the bill to the state legislature for presenting its views. The bill tabled on December 16 but could not be discussed for many days as protests affected the normal procedure of the houses. The views had to be presented by January 23 and even though three weeks time was asked on Tuesday after that only one week was given by the President.
The Sensex plummeted 149 points which is lowest in two months. The reason assigned was that there were fears of capital outflows from emerging markets as a repercussion to the slash of the stimulus programme by $10 billion by the US Federal Reserve. The stocks of banking, metal, realty, oil&gas affected 10 of the 12 indices of the BSE to run lower. At the same time there was a gain in consumer durables and auto. The Sensex ended at 20,498.25 that is 149.05 points or 0.72% lower than where it closed on Wednesday. In fact in 5 days the Sensex has crashed by 875 points from its close of 21373.66 on January 23 and in this month it has dipped by 672.43 points.The 50-scrip NSE also slumped by 46.55 points, or 0.76% and closed at 6,073.70.
Science and Technology
Google will be selling its smartphone business of Motorola to Lenovo for mere $2.9 billion. It should be noted here that Google acquired the business for $12.4 billion in 2012. The mistake of acquiring Motorola seems to have cost Google a lot. In fact things were never right since the time Google got hold of Motorola Mobility and its finances was draining. There was a loss of $2 billion while workforce was slashed to 3800 from 20000. Google got some of its money back by selling off the set-top operation of Motorola to Arris Group for $2.35 billion. Most of the patents will lie with Google which came when it purchased Motorola. On the other hand, Lenovo seems to be engrossed in the expansion business what with smartphones being the popular option with the people to access internet these days rather than laptops or PCs.
Subsidy cap on LPG has been increased from 9 to 12 cylinders. Parliament agreed to the request of Rahul Gandhi days after he had demanded this. The Oil Minister, Veerappa Moily informed that the Cabinet Committee on Political Affairs has agreed households will get 12 cylinders from April 2014 on subsidized rates. This will be putting an extra burden of Rs 5,000 crore to the exchequer. At the same time the process of crediting the subsidy to Aadhaar linked bank has been put on hold as of now. It was agreed upon that Rahul Gandhi had made a valid demand. It was also stated that this decision has no bearing with the forthcoming Lok Sabha Polls. Government had earlier put a cap of only 6 subsidized LPG cylinders per household in September 2012. Then it was raised to 9 cylinders in a year in January 2013.
The Supreme Court rejected the plea to remove cases against Tamil Nadu CM, J Jayalalithaa. These cases were for non-filing of the IT return from 1991-94 when she was a partner of Sashi Enterprise along with her associate N Sasikala. The Supreme Court bench led by justice KS Radhakrishnan and justice Vikramjit Sen sent direction to Chennai’s trial court for completion of the trial within four months. No income tax return was filed by Sashi Enterprise nor its partners for 1991-92, 1992-93 and 1993-94. Jayalalitha had stated that there were no earnings from the organization so there cannot be any charges of tax evasion. This was dismissed by economic offence court in Chennai which stated that non-filing of ITR was an offence. In fact their appeal was also rejected by the Madras High Court. They have moved the apex court against the judgment of the High Court but the Supreme Court stated they will not interfere with the high court order.