| | 5 THINGS FIRST | 15th India-EU summit to be held via video conference; Supreme Court to hear pleas on Maratha quota; Reliance Industries’ 43rd AGM; CBSE to announce Class X results; Premier League: Arsenal vs Liverpool (00:45 IST, Thursday) | |
| | 1. Pathway cleared for Pilot to join BJP? |  | - Cracking the whip: The Congress on Tuesday sacked Sachin Pilot both as the Deputy Chief Minister of Rajasthan and the state party chief. Rajasthan CM Ashok Gehlot accused the BJP of hatching a conspiracy to destabilise his government, saying that “there is nothing in Sachin Pilot’s hands, it is the BJP which is running the show”. Gehlot, who later held a cabinet meeting at his residence, had earlier met the state governor and it's likely that there'll be a cabinet reshuffle in the coming days.
- Flight plan: Pilot, who tweeted a cryptic message after his sacking, saying that “Truth can be rattled, but it cannot be defeated”, is said to have put forth certain conditions in order to make peace with Gehlot. These included a public commitment from the party to announce him as the CM-candidate before the next assembly election due in 2023, plum postings for his supporters and replacing the current General Secretary and Congress in-charge of Rajasthan, Avinash Pande, who, he alleged favoured Gehlot.
- The undoing: Pilot was reportedly incensed at being summoned by the Special Operations Group (SOG) of the Rajasthan Police which is investigating the alleged attempt at bribing certain Congress MLAs ahead of the Rajya Sabha elections last month by the BJP. According to reports, the former PCC chief ‘felt humiliated’ and had camped in the national capital, insisting on meeting the interim Congress president Sonia Gandhi. Additionally, while Pilot was claiming the support of 30 MLAs — the Congress has 107 seats in the 200-member state assembly — the CLP meeting on Tuesday, where the decision to remove Pilot was taken, was attended by 104 MLAs.
- Utility value: While Pilot has not given any indication about his future plans, he changed his Twitter bio to remove all references of his association with the Congress. Pilot’s importance in the caste-dominated politics of Rajasthan stems from his unique ability to draw upon the support of both the Gurjar and Meena communities in the state, who have traditionally been antagonistic towards each other as the former haven’t been given ST status, unlike the latter. Pilot, who himself hails from the Gurjar community, has been able to unite the two communities to the extent that one of the two ministers sacked along with him from the cabinet, Ramesh Meena, belongs to the Meena community. The two communities together constitute 16% of the state’s population — with the Gurjars at 6% and the Meenas at 10%. In fact, fearing a law and order situation, the state police has been alerted to maintain peace.
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| | 2. Trump administration abandons student visa rule |  | - Collective pressure: Facing eight federal lawsuits by several universities and tech companies and at least 18 different state attorneys general, the Donald Trump administration on Tuesday rescinded a rule that would have required international students to leave the country if their schools held classes entirely online, or transfer to an institution that provides in-person classes at least in part. The settlement was announced at the start of a hearing in a federal lawsuit in Boston brought by Harvard University and MIT, and later joined by several other universities as well as major technology companies, including Google, Microsoft and Facebook. The rules will “return to the status quo,” US District Judge Allison Burroughs said.
- The United States Secretary of State Mike Pompeo, in a statement, rejected China’s claims in the South China Sea, saying Beijing has “offered no coherent legal basis” for its so-called Nine-Dashed Line. “Beijing’s claims to offshore resources across most of the South China Sea are completely unlawful,” the statement said. The US rejected China’s claims over Spratly Islands (disputed with the Philippines), Vanguard Bank (off Vietnam), Luconia Shoals (off Malaysia), waters in Brunei’s Exclusive Economic Zone, and Natuna Besar (off Indonesia). In response, Chinese Foreign Ministry spokesman Zhao Lijian said China’s “effective jurisdiction over the relevant islands reefs and waters in the SCS has been there for over 1,000 years”.
- The UK will bar telecom carriers from buying any Huawei equipment for 5G network from the end of this year, and carriers that already use equipment from the Chinese firm will be given time till 2027 to strip them off, the British culture secretary said Tuesday, reversing its policy under US pressure.
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| | 3. Daily cases cross 30,000 for the first time |  | - The pandemic worsened in the country as fresh cases on Tuesday zoomed past the 30,000 mark for the first time, even as total deaths from the virus crossed 24,000 (582 fatalities on the day). As many as 30,142 new infections emerged across the country on Tuesday, taking the total caseload to 936,994, per data collated from state governments.
- On Sunday and Monday, India’s daily cases were the second highest globally after the US, having overtaken Brazil’s tally on both days (see above graphic). Brazil’s daily count had fallen sharply since Friday, when the country had reported over 45,000 new infections, while India’s was gradually rising. (Global data for Tuesday was awaited.)
- As many as 10 states reported more than 1,000 fresh infections each on the day, with at least seven states recording their highest single-day rise in infections — Tamil Nadu (4,526 new cases), Bihar (1,432), Gujarat (915), Madhya Pradesh (798), Haryana (699), Kerala (608) and Goa (170). Major Covid states such as Maharashtra (6,741 new cases), Delhi (1,606), Assam (1,001) and Rajasthan (635) too reported higher numbers than Monday. Maharashtra again had the highest death toll at 213, followed by Karnataka (87), Tamil Nadu (67), Andhra Pradesh (43), Delhi (35) and Uttar Pradesh (28).
- Now, two indigenous Indian candidate vaccines — from Bharat Biotech and the Serum Institute of India — have got clearances to start early phase human trials this month with both having approximately 1,000 human volunteers each, the Indian Council of Medical Research (ICMR) said on Tuesday. Balram Bhargava, ICMR’s director-general added that it is a “moral duty” to ensure there is not even a day's delay in regulatory clearances.
- Also, the Supreme Court said the exorbitant cost of Covid treatment must not dissuade patients from going to private hospitals during a pandemic and asked petitioners and representatives of private hospital associations to meet health ministry officials and resolve the issue in two weeks.
- Finally, the rail coach factory in Punjab’s Kapurthala unveiled two ‘Post Covid Coaches’ – one AC and another non-AC. The coaches have titanium dioxide coating to kill viruses and prevent infections. Provision for plasma air purification, hands-free amenities such as foot-operated soap dispensers and handrails coated with antimicrobial copper are among the features planned to be introduced in coaches.
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| | 4. Now China a factor in India-Iran relations |  | - A setback: Iran has dropped India from a rail line project linking the Chabahar port to Zahedan, along the border with Afghanistan. Iran said it was going ahead alone after delays by India. Iran, remember, is under sanctions from the US. Though India has negotiated a sanctions exemption, the work has yet to begin on the rail project. Iran inaugurated the track-laying last week, and plans to complete the project by March 2020, The Hindu reports. Iranian Railways will proceed without India’s assistance, using approximately $400 million from its National Development Fund, the report said.
- The project: The 628-km rail line was a crucial piece in laying a reliable corridor of trade between India and Afghanistan through Iran; India was wary of Pakistan blocking it from Afghanistan, but with Tehran India enjoys “historic ties”. India had taken control of the Chabahar port in early 2019. In 2016, during Prime Minister Narendra Modi’s visit to Tehran, Indian Railway Construction Ltd (IRCON) and Iranian Railways signed an MoU to construct the rail line as “part of transit and transportation corridor in trilateral agreement between India, Iran and Afghanistan”.
- A corridor: In 2017, India sent a consignment of wheat as assistance to Afghanistan through the Chabahar. Last year, Afghanistan sent its first consignment to India through the port: 570-tonne cargo of carpet, dry fruits, cotton and talc. The railway line would fast-track such activities.
- But... despite the sanctions exemption, work had not begun on the rail project as key suppliers were wary of falling afoul of the US.
- And China? Following US sanctions, India has reduced its oil imports from Iran to near zero. So has China. But, China is to sign a 25-year, $400 billion deal with Iran to ensure supply of Iranian oil. In return, China is to help develop airports, high-speed railways, subways, banking and 5G telecommunication, the New York Times reports. The deal is yet to be submitted before the Iranian parliament. Nonetheless, it strikes three birds with one stone: Iran gets money, China oil, and the two get to snub the US. Also: China is to develop Iran’s port — which port is not clear — as well as conduct joint security exercises with Iran. China already is working on the Gwadar port in Pakistan’s Balochistan, which borders Iran.
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| | | 6. Calls for Varavara Rao’s release |  | - Who: Revolutionary Telugu poet and writer P. Varavara Rao was arrested on August 28, 2018, by the Pune police investigating the Elgar Parishad event of December 2017 which preceded the Bhima Koregaon anniversary that turned violent. Arun Ferriera, Gautam Navlakha and Vernon Gonsalves were among the nine others arrested. In June that year, Pune police claimed it had recovered a letter detailing a Maoist plan to assassinate PM Narendra Modi from the house of co-accused Rona Wilson; Rao’s name was on it, police claimed. Rao, like others, has been in jail since, charged under the anti-terror law, UAPA. The case is now being probed by the NIA. The accused have said the letter is not authentic; activists and lawyers involved in the case were among those targeted with the Pegasus spyware by unknown actors. Besides his literary work, decades back Rao had been an emissary for Naxalites in talks with Andhra Pradesh.
- Deteriorating health: Rao, 81, is detained at the Taloja prison in Navi Mumbai. His health is said to be deteriorating, prompting his family members, civil rights activists and others to call for his release. His family said co-accused Ferriera, who has been caring for Rao, informed them he is barely able to do his daily chores — he reportedly can't walk or even hold a toothbrush. Rao was admitted to JJ Hospital, Mumbai, after he felt “dizziness”. On Monday, Rao’s lawyer filed two petitions at the Bombay High Court seeking temporary bail.
- Many voices: In a press statement, Rao’s wife P. Hemalatha and daughters P. Sahaja, P. Anala and P. Pavana stated that the once “eloquent and articulate public speaker and writer” was found “fumbling” for words and in a state of “incoherence and loss of memory” during a phone call on July 11. In May, the family had written a letter to the Centre, asking they be informed of his health following reports of hospitalisation. The Telangana Forum Against Oppression has appealed to the Maharashtra authorities to ensure Rao is not hurriedly discharged from the hospital. On Tuesday, Congress MP Adhir Ranjan Chowdhury wrote to PM Modi, saying at 81 years of age Rao “cannot be a threat to one of the strongest countries”, and be granted bail.
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| | 7. Why is WPI falling and CPI rising? |  | - The index: Prices in the wholesale market fell for the third straight month, declining 1.81% in June, due to sharp decline in fuel and power items even as food articles remained expensive. Inflation, based on the monthly Wholesale Price Index (WPI), in May and April was (-) 3.21% and (-) 1.57%, respectively while in March it was 0.42%.
- The rise: However, prices of food articles hardened with inflation at 2.04%, as against 1.13% in May. While inflation in vegetables and onion stood at (-) 9.21% and (-) 15.27%, respectively, potatoes saw a spike in prices with inflation at 56.20%. Pulses too saw rise in cost with inflation at 10.10%, while the same for wheat was 5.17% during June. Manufactured products witnessed inflation of 0.08% in June, against (-) 0.42% in May.
- The fall: In the fuel and power basket, inflation stood at (-) 13.60% in June, against 19.83% in the previous month.
- The gap: Data released on Monday showed retail inflation, as measured by consumer price index (CPI), increasing to 6.09% in June. The difference in the WPI- and CPI-based food inflation since March has been the result of the food supply chains between the mandis and the consumer breaking down due to the lockdown. While the disruption led to an increase in prices for the end consumer, the farmers didn’t gain much. Read the full story here
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| | 8. A US federal execution in nearly two decades |  | - The US government on Tuesday carried out the first federal execution in almost two decades — the first by the Bureau of Prisons since 2003. Daniel Lewis Lee, 47, of Yukon, Oklahoma, was put to death by lethal injection at the federal prison in Terre Haute, Indiana. He was convicted of torturing and killing an Arkansas family and dumping their bodies into a lake, in a 1996 plot to build a whites-only nation in the Pacific Northwest.
- This after several executions were initially delayed when a judge ruled on Monday that there were still unresolved legal challenges. The condemned prisoners had argued that lethal injections constitute "cruel and unusual punishments". However, the Supreme Court voted 5-4 that "executions may proceed as planned".
- It also drew scrutiny from civil rights groups and the relatives of Lee's victims, who had sued to try to halt it, citing concerns about the pandemic. Critics argued that the government was creating an unnecessary and manufactured urgency for political gain. FYI: Lee was in the execution chamber with two men, who the Bureau of Prisons identified as “senior BOP officials”, a US Marshal and his spiritual advisor. They did not wear masks and Lee was also not wearing a mask.
- Two other federal executions are scheduled for later this week, though one remains on hold in a separate legal claim. There have been two state executions in the US since the pandemic forced shutdowns nationwide in mid-March — one in Texas and one in Missouri, according to the Death Penalty Information Center. Alabama carried out one in early March.
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| | | 9. Pegasus spyware targeted Catalan leader |  | - Pegasus, the spyware created by Israel-based NSO Group and the subject of a US lawsuit by Facebook and WhatsApp, was used to spy on the speaker of the Catalan regional parliament, The Guardian reports, worsening the political rift between the pro-independence leader and the Spain government. Roger Torrent, the speaker, was warned of the attack by Canada-based Citizen Labs. The spyware was also used to target over 100 members of civil society, including journalists in India, human rights activists in Morocco, diplomats, and senior government officials.
- Amazon has a new trick up its sleeve to disrupt the retail business. Its new shopping cart, called Amazon Dash Cart, to be deployed at its physical store in Los Angeles, is also the store’s cashier. It is equipped with cameras, sensors and AI smarts to detect what and how much a shopper drops in it, and will tally and bill the amount when they leave the store. Now streaming: Black Mirror.
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| | BEFORE YOU GO | | 10. In 5 days, Ambani adds $5 billion to his wealth |  | - India’s, as also Asia’s richest person, Mukesh Ambani, whose company Reliance Industries (RIL) is scheduled to hold its Annual General Meeting (AGM) later today, is threatening to enter the top 5 of Bloomberg’s Billionaire Index, having climbed to 6th spot on the richest persons’ ranking — ahead of Tesla founder Elon Musk, Berkshire Hathaway founder Warren Buffett and Google’s co-founders, Sergey Brin and Larry Page.
- The speed at which Ambani’s net worth has increased is also astounding — on July 9, Ambani’s net worth was $67.4 billion, placing him at the 9th spot, just behind Buffett. He ended Tuesday with a net worth of $72.4 billion — this means Ambani has added nearly Rs 8.74 lakh per second to his wealth in less than a week. That’s due to the appreciation in the stock price of RIL, which has zoomed over 5% in the last 5 days to make it the first Indian company with a market cap in excess of Rs 12 lakh crore, at over Rs 12.15 lakh crore.
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| | Answer to NEWS IN CLUES |
Flipkart. Walmart has increased its stake in the e-commerce company to a "little over 80%" by investing an additional $1.2 billion. The fresh equity round from the world’s largest retailer, which bought the majority stake in Flipkart for $16 billion in 2018, values Flipkart at $24.9 billion after the investment, the companies said on Tuesday. A group of existing shareholders also participated in the round, Walmart said in a statement, adding that the investment would be funded in two tranches over the remainder of the fiscal year. Tiger Global, Tencent and Accel are Flipkart’s other existing backers. | |
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| Written by: Rakesh Rai, Judhajit Basu, Sumil Sudhakaran, Tejeesh N.S. Behl
Research: Rajesh Sharma
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