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Thu 23rd of November 2017

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IAS EXPRESS - Free Download

Pakistan's Gwadar port leased to Chinese company for 40 years
  •  Pakistan has leased the operations of its strategic Gwadar port to a State-run Chinese firm, the China Overseas Port Holding Company (COPHC) for a period of 40 years.
  •  COPHC is slated to carry out all the developmental work on the port situated in the Balochistan province of Pakistan.
  •  COPHC took over the operations of the port in 2013. Previously, the control of the Gwadar port was with Singapore’s PSA (Port of Singapore Authority) International.
  •  As per the contract, 91% share of revenue collection from gross revenue of terminal and marine operations as well as 85% share from gross revenue of free zone operation will go to the COPHC.
  • The provinces will not be given any share in the revenue collection.
  •  Gwadar Port is a warm-water, deep-sea port situated on the Arabian Sea at Gwadar in Balochistan province of Pakistan. It is located at the mouth of the Persian Gulf just outside the strategically important Strait of Hormuz.
  • It features as the southern Pakistan hub of the $57 billion China-Pakistan Economic Corridor (CPEC) plan. It is considered as a vital link between the Chinese One Belt, One Road initiative and the Maritime Silk Road project.

Advantages for China

  • Gwadar offers China a shortest route to oil-rich West Asia and Africa.
  • China can use the port to transport fuel into north-western China, by transporting oil and gas from the port through pipelines to China’s Xinjiang province.
  • Having Gwadar under its command would change the security dynamics for China.
  • 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.

Implications for India

  • Gwadar port offers serious strategic implications for India. Gwadar provides China a key listening post to observe the Indian naval activities around the Persian Gulf and Gulf of Aden.
  • The Gwadar port, if fully operationalised, will wean Pakistan away from near-total dependence on Karachi, which is much closer to India and hence within the Indian military’s strike range.
  • Lease of Gwadar port also helps China 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.
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Prelims Question of the Day

With reference to 'Natural Rate of Unemployment', consider the following statements.

1. It is the level of unemployment in an economy that is just consistent with a stable rate of Inflation.

2. It is the unemployment that prevails when all markets in the economy are in equilibrium.

 

(a)1 and 2

(b)2 only

(c)1 only

(d)None of the above

Mains Question of the Day

1.GS-No party in power can afford to ignore Directive Principles of State Policy. Comment.(200 Words)

2.Political Science - Explain the role of non state actors, like IMF, World Bank, European Union and MNCs, in modulating and transforming the broad dynamics of international relations. (250 Words).

3.SOCIOLOGY - What is the impact of Globalization on the structure and mobilization of the working class in India? (250 Words).

Sociology - Thinkers