Raus IAS Compass C3 April To August 2020 @CivilServicesPDF

CONTENTS
►PERSONS WITH DISABILITIES ENTITLED TO SAME

Section-1 RESERVATION AS GIVEN TO SC/ST 09
►RESERVATION FOR MARATHAS 09
Indian Polity and governance
BODIES IN NEWS 10
01-22 ►NATIONAL RECRUITMENT AGENCY 10
CURRENT AFFAIRS 02 ►DRUG CONTROLLER GENERAL OF INDIA (DCGI) 10

►NFRA CONSTITUTES TECHNICAL ADVISORY COMMITTEE 11
►SUPREME COURT SUO MOTU REGISTERED A CASE OF
CONTEMPT AGAINST LAWYER PRASHANT BHUSHAN 01 ►NATIONAL INTELLIGENCE GRID (NATGRID) 11
►GOVERNMENT CANNOT BRAND ANY ORGANISATION AS ►PRASAR BHARATI & PTI 12
POLITICAL 02 ►UNMANNED AIRCRAFT SYSTEM (UAS) RULES OF 2020
►CONSTITUTION BENCH ON COMPENS-ATION UNDER LAND NOTIFIED 12
ACQUISITION ACT, 1894 02 ►DRAFT OF DEFENCE PROCUREMENT PROCEDURE 2020 13
►PUDUCHERRY LT. GOVERNOR 02 ►CAUVERY WATER MANAGEMENT AUTHORITY 13
►HARYANA GIVING RESERVATION IN PRIVATE JOBS 03 ►NATIONAL COMMISSION FOR PROTECTION OF CHILD
►THE MINERAL LAWS (AMENDMENT) ACT, 2020 04 RIGHTS 14
►NGT ORDER OF VIZAG GAS TRAGEDY 04 ►NORTH EAST WATER RESOURCES MANAGEMENT (NEWMA)
14
►MIZORAM PROVIDES INDUSTRIAL STATUS TO SPORTS 04
►ANDHRA PRADESH: SC SCRAPS 100% RESERVATION IN
SCHEDULED AREAS 04
►COURT HEARINGS THROUGH VIDEO CONFERENCING 04 SCHEMES 14
►DEEMED UNIVERSITIES COME UNDER PREVENTION OF ►NATIONAL INITIATIVE FOR SCHOOL HEADS AND TEACHERS
CORRUPTION ACT 04 HOLISTIC ADVANCEMENT (NISHTHA) 14
►HORIZONTAL RESERVATION FOR NEET 05 ►AMENDMENTS TO PRIME MINISTER RESEARCH
FELLOWSHIP SCHEME (PMRF) 15
►OVERRULING OF DELHI CM’S ORDER BY LIEUTENANT-
GOVERNOR 05 ►THE URBAN LEARNING INTERNSHIP PROGRAM (TULIP) 15
►REPLACING PERMANENT RESIDENTS OF J & K 05 ►23 ADDITIONAL MINOR FOREST PRODUCE INCLUDED IN
MINIMUM SUPPORT PRICE LIST 16
►THE ELECTION COMMISSION OF INDIA (ECI) HAS MADE IT
POSSIBLE FOR SENIOR CITIZENS ABOVE THE AGE OF 65 TO ►NATIONAL DIGITAL HEALTH MISSION 16
VOTE BY POSTAL BALLOT 06 ►NEW EDUCATION POLICY 2020 16
►SECRET BALLOT 06 ►WORLD BANK'S STARS PROJECT 17
►S.C’S FIVE-JUDGE CONSTITUTION BENCH -100 PER CENT ►SWADES: SKILL MAPPING EXERCISE FOR RETURNING
RESERVATION FOR SCHEDULED TRIBES IN SCHEDULED CITIZENS 17
AREAS OF A STATE IS NOT PERMISSIBLE 07
►JAGANANNA CHEDODU SCHEME LAUNCHED 17
►COURT RECORDS DO NOT FALL UNDER RTI – SUPREME
COURT 07 ►PANCHVATI YOJANA LAUNCHED 18
►POWER OF SPEAKER TO SUSPEND MEMBERS OF ►“OPERATION SHIELD” LAUNCHED BY THE DELHI

PARLIAMENT 07 GOVERNMENT 18
►SALARY CUT OF MEMBERS OF PARLIAMENT 08 ►NITI AAYOG LAUNCHES “SURAKSHIT DADA-DADI” & “NANA
NANI ABHIYAN” 18
►NHRC SUBMITS REPORT TO UNHRC 08
►STATE HEALTH REGISTER TO BE LAUNCHED BY
►RIGHT TO RESERVATION IS NOT A FUNDAMENTAL RIGHT: KARNATAKA GOVERNMENT: FIRST OF ITS KIND 18
SUPREME COURT 09
►SHAHAKAR MITRA SCHEME LAUNCHED 18
►PRADHAN MANTRI GAREEB KALYAN ANNA YOJANA 18
i
►SPECIAL WINDOW FOR AFFORDABLE AND MID INCOME ►HEALTHY AND ENERGY EFFICIENT BUILDINGS INITIATIVE 36
HOUSING (SWAMIH) 19
►BORDER ADJUSTMENT TAX (BAT) 36
►YUKTI 2.0 19
►EQUALISATION LEVY 37
►MANODARPAN INITIATIVE 19 ►AUTHORITY FOR ADVANCE RULING (AAR) 37
►PRAGYATA GUIDELINES ON DIGITAL EDUCATION
►PROMOTION OF SELF-RELIANCE IN PHARMACEUTICAL
RELEASED 20
SECTOR 37
►INITIATIVES TO BOOST SOLAR POWER 38
INDEX AND REPORTS 20 ►NATIONAL PENSION SYSTEM 38
ND ►RECENT CHANGES IN FDI POLICY 39

►NITI AAYOOG SUBMITS INDIA’S 2 VOLUNTARY NATIONAL
REPORT 20
►INDIA REGISTERS A STEEP DECLINE IN MATERNAL EXTERNAL SECTOR 40
MORTALITY RATIO 20
►RBI’S STATUS REPORT ON EXTERNAL DEBT 40
►NIRF RANKINGS 20
►DOLLAR SWAP LINE 40
►WORLD PRESS FREEDOM INDEX 21
RD ►FOREX RESERVES CROSS $500BN 41
►INDIA RANKS 53 IN BUDGET TRANSPARENCY AND
ACCOUNTABILITY 21 ►ISSUE OF H1B VISA 41
►GLOBAL EDUCATION MONITORING (GEM) REPORT 21 ►NET INTERNATIONAL INVESTMENT POSITION (NIIP) 41
►GLOBAL NUTRITION REPORT 22 ►OFF-SHORE DERIVATIVE INSTRUMENTS 41
►FREEDOM IN THE WORLD 2020 REPORT 22 ►STAGES OF TRADE INTEGRATION 42
►“LOST AT HOME”: A REPORT RELEASED BY UNICEF 22 ►INTERNATIONAL MONETARY AND FINANCIAL COMMITTEE
(IMFC) 43
Section-2 BANKING 43
►SPECIAL LIQUIDITY WINDOW FOR NBFCS 43
Indian economy ►BANKS BOARD BUREAU 43
►PAYMENTS INFRASTRUCTURE DEVELOPMENT FUND (PIDF)
23-55 43
►RARE CURRENT ACCOUNT SURPLUS 44
RBI AND MONETARY POLICY 23
►RBI’S ECONOMIC PACKAGE TO DEAL WITH COVID-19 23
TAXATION AND FISCAL STRENGTH 45
►INCREASE IN CPI RATE OF INFLATION 24
►NEED OF A FISCAL COUNCIL 45
►CIRCUIT BREAKER 25
►FISCAL EMPOWERMENT OF THE STATES 46
►COOPERATIVE BANKS BROUGHT UNDER SARFAESI ACT
25 ►DIRECT MONETISATION OF GOVERNMENT’S DEFICIT 46
►GDP-LINKED BONDS 46
GOVERNMENT POLICIES 25
►ECONOMIC STIMULUS PACKAGE FOR SELF-RELIANT INDIA
INFRASTRUCTURE 47
25 ►PPP IN INDIAN RAILWAYS 47
►REFORMS IN THE AGRICULTURE SECTOR INCLUDING ►AGRICULTURE INFRASTRUCTURE FUND 47
AGRICULTURAL MARKETING 28
►ANIMAL HUSBANDRY INFRASTRUCTURE DEVELOPMENT
►STRUCTURAL REFORMS IN SECTORS SUCH AS COAL, FUND 47
MINERAL, CIVIL AVIATION, DEFENCE ETC. 30
►RAISE PROGRAM 48
►REFORMS IN EMPLOYMENT, EDUCATION, HEALTH ETC. 32
►ECONOMIC BOYCOTT OF CHINA 33
►GARIB KALYAN ROJGAR ABHIYAAN 34 STOCK EXCHANGE AND BOND MARKET 48
►CODE ON WAGES 35 ►BHARAT BOND ETF 48
►PM SVANIDHI 35 ►SOCIAL STOK EXCHANGES 49
►INDIA’S FIRST GAS TRADING HUB 35 ►GOLD-BASED ETF 49
►NATIONAL RUBBER POLICY 36 ►CONSOL BONDS 50
ii
►RBI SAVINGS BONDS 50 ►RED SNOW 63
►SURETY BONDS 50 ►BLACK CARBON LEVEL 63
►IMPACT OF AEROSOL ON CLIMATE CHANGE 64
INTERNATIONAL INSTITUTIONS 51
►GOVERNMENT BORROW $ 500 MILLION FROM AIIB 51 INTERNATIONAL INITIATIVES 65
►OPEC PLUS 51 ►EU CLIMATE LAW 65
►THE ‘STATE OF INDIA’S BIRDS 2020’ REPORT 65
MISCELLANEOUS 51
►KISAN SABHA APP 51 NATIONAL EVENTS/ INITIATIVES 65
►CHAMPIONS PORTAL FOR MSMEs 52 ►MAHADAYI / MANDOVI RIVER DISPUTE 65
►CENTRAL BANK DIGITAL CURRENCY/ CHINA LAUNCHES ►NEW GUIDELINES FOR IMPORT OF EXOTIC SPECIES 66
NEW DIGITAL CURRENCY s 52
►ULSOOR LAKE 66
►IRAN ADOPTS NEW CURRENCY "TOMAN" s 52
►LONAR LAKE POLLUTION 66
►NAGAR VAN SCHEME 66
REPORT & INDICES 53 ►PROJECT LION 66

►PROJECT DOLPHIN 66
►SOUTH ASIA ECONOMIC FOCUS REPORT s 53
►SCHOOL NURSERY PROGRAM 67
►“MIGRATION AND DEVELOPMENT BRIEF” REPORT 53
►ENERGY TRANSITION INDEX (ETI) 54
►EXPORT PREPAREDNESS INDEX 2020 54 IMPORTANT CONCEPTS 67
►WORLD UNCERTAINTY INDEX 54
►ALTERNATIVE PROTEIN 67
►WORLD PANDEMIC UNCERTAINTY INDEX 54 ►DEEP SEA MICROPLASTICS 67
►GOODS TRADE BAROMETER 54 ►CANINE DISTEMPER VIRUS (CDV) 68
►IMPORTANT COMMITTEES IN NEWS 54
Section-4
Section-3
Science & Technology
Environment, Ecology & Biodiversity
69-79
56-68
SPACE 69
IMPORTANT SPECIES 56
►PERSEVERANCE 69
►INDIAN GAUR 56
►EMIRATES MARS MISSION (HOPE PROBE) 69
►FISHING CAT 57
►CHINA'S MARS MISSION (TIANWEN1) 69
►SMOOTH COATED OTTER 57
►INDIAN NATIONAL SPACE PROMOTION & AUTHORISATION
►OLIVE RIDLEY TURTLES 57 CENTRE (IN-SPACE) 69
►HIMALAYAN IBEX 58 ►ARAB WORLD'S FIRST NUCLEAR POWER PLANT 70
►ANTARCTIC IMPULSIVE TRANSIENT ANTENNA (ANITA) 70
IMPORTANT EVENTS 58 ►SUNRISE MISSION 70

►SOUTH ATLANTIC ANOMALY 70
►ANNULAR SOLAR ECLIPSE 58
►ARTEMIS ACCORD 70
►AMPHAN CYCLONE 59
►CREW DRAGON 71
►HEAT WAVES 61
►BLACK HOLE MERGER 71
►LOCUST ATTACK 61
►COMET NEOWISE 71
►BIOREMEDIATION 62
►SKYROOT AEROSPACE 71
►EARTHQUAKE AND EARTHQUAKE PREDICTION 62
►ITER 71
iii
►FACILITY FOR ANTIPROTON AND ION RESEARCH (FAIR) 72
►BLACK NITROGEN (NEW ALLOTROPE OF NITROGEN) 72 Section-5
►SARABHAI CRATER 72
►CHANDRAYAAN-3 72
Other Important Events
80-90
HEALTH & BIOTECHNOLOGY 72
►INNATE IMMUNITY 72
INTERNATIONAL AFFAIRS 80
►TESTS FOR COVID-19: A COMPARATIVE ANALYSIS 73
►INDIAN OCEAN COMMISSION 80
►FISH CRYOBANKS 73
►OPERATION SANJEEVANI 80
►PATENT POOLS 74
►IUSSTF 80
►MEDICINES PATENT POOL 74
►SOUTH CHINA SEA 81
►COVID-19 TECHNOLOGY ACCESS POOL 74
►UN SECURITY COUNCIL (INDIA’S ELECTION AS A NON
►COVAX 74
PERMANENT MEMBER) 81
►GAVI 74
►TAIWAN ISSUE 82
►CEPI 75
►UN SECRETARIAT “6+2+1” MEETING 82
►INDIAN INITIATIVE ON EARTH BIOGENOME SEQUENCING
►OPEN SKIES TREATY (OST) 82
75
►INDIA CHINA BORDER DISPUTE 83
►fastMRI 75
►CHINA STUDY GROUP 84
►BREAKING BARRIERS TO HEALTH DATA PROJECT 75
►MISSION SAGAR 84
►DENGUE CONTROL 75
►VANDE BHARAT MISSION 85
►ARMS TRADE TREATY 85
MISCELLANEOUS 75 ►G7 & G11 85
►HARITH PATH APP 75 ►HONG KONG'S BASIC LAW 86
►HARIT BHARAT SANKALP 75 ►GLOBAL ALLIANCE FOR VACCINE AND IMMUNIZATION
►L7 VEHICLES 76 (GAVI) 86
►DEEPFAKE 76 ►INTERNATIONAL ATOMIC ENERGY AGENCY (IAEA) 86
►SWADESHI MICROPROCESSOR CHALLENGE 76 ►RIC TRILATERAL GROUPING 87
►'TRAVEL BUBBLE' ARRANGEMENT 76 ►NEW ORIENTATION FOR REFORMED MULTILATERAL

SYSTEM OR NORMS 87
►SRIJAN PORTAL 76
►MALABAR NAVAL EXERCISE 87
►NAVAL INNOVATION AND INDIGENISATION ORGANISATION
(NIIO) 76 ►NEPAL POLITICAL MAP 88
►IMPORT EMBARGO ON 101 DEFENCE ITEMS 76 ►ISRAEL UAE AGREEMENT 88
►GREENDEX 77
►PRESIDIO PRINCIPLES FOR BLOCKCHAIN TECHNOLOGY HISTORY & CULTURE OF INDIA 88
77
►NEW CIRCLES OF ARCHAEOLOGICAL SURVEY OF INDIA 88
►XENOBOTS 77
TH
►150 ANNIVERSARY OF ABANINDRANATH TAGORE 89
►QR CODE 77
►INTERNATIONAL BUDDHIST CONFEDERATION (IBC) 89
►NATIONAL GIS ENABLE LAND BANK SYSTEM 77
►ASHADHA PURNIMA 89
►NATIONAL DETERMINED CONTRIBUTIONS- TRANSPORT
INITIATIVE FOR ASIA 77 ►MONGOLIAN KANJUR 89
►DECARBONIZING TRANSPORT IN EMERGING ECONOMIES ►NATIONAL MISSION FOR MANUSCRIPTS 90

(DTEE PROJECT) 78 ►CULTURAL HERITAGE OF HYDERABAD 90
►ATL AI STEP UP MODULE 78 ►NUAKHAI JUHAR 90
►INDIAN ENERGY MODELLING FORUM 78 ►BON-BIBI PALAGAAN 90
►qkdSim 78 ►RECENT GEOGRAPHICAL INDICATIONS 90
►QUANTUM KEY DISTRIBUTION 78
►MRNA BASED VACCINES 79
iv
SECTION 1
I P NDIAN OLITY &
G OVERNANCE
months, or with fine which may extend to Rs 2,000, or

CURRENT AFFAIRS both.
ο However, Section 12 of the Act also adds an exception
►SUPREME COURT SUO MOTU
to the punishment prescribed. “Provided that the
REGISTERED A CASE OF CONTEMPT accused may be discharged or the punishment awarded
AGAINST LAWYER PRASHANT BHUSHAN may be remitted on apology being made to the
Two contempt of court cases are before the Supreme Court satisfaction of the court.
against lawyer Prashant Bhushan. The first case dates back to • Act divides contempt into civil contempt and criminal
2009 and the other relates to two of the Twitter posts by contempt:
Prashant Bhushan in June this year. ο Civil contempt means ‘wilful disobedience to any
CONTEMPT OF COURT judgment, decree, direction, order, writ or other
• Contempt of court refers to an act of disrespect or processes of a Court or wilful breach of an undertaking
disobedience towards a judge or court’s officers or given to the court’.
interference with its orderly process. ο Criminal contempt means the publication of any
• Contempt of Courts Act, 1971 lays down the procedure matter or doing an act which—
to be followed in contempt cases. (i) Scandalises or lowers the authority of a court; or
ο It also says that the offence is punishable with simple (ii) Prejudices or interferes with the due course of a
imprisonment for a term which may extend to six judicial proceeding; or
RAU’S IAS FOCUS SPECIAL EDITIONS | PRELIMS COMPASS (C3 CURATION) for CSE 2020
1
INDIAN POLITY & GOVERNANCE
(iii) Interferes or obstructs the administration of justice ο Where no award under Land Acquisition Act 1894 has
in any other manner. been made, then, the award shall be given as per the
ο However, innocent publication and distribution of some 2013 Act which provides for higher compensation.
matter, fair and accurate report of judicial proceedings, ο If an award has been made under Land Acquisition Act
fair and reasonable criticism of judicial acts and 1894, then such proceedings shall continue under the
comment on the administrative side of the judiciary do old Act of 1894.
not amount to contempt of court. • Section 24(2) - In cases where an award under the 1894 Act
• Article 129 and 215 of the Constitution of India empowers has been made five years or more before the
the Supreme Court and High Court respectively to punish commencement of the 2013 Act but
people for their respective contempt. ο Physical possession of the land has not been taken or
• Article 142(2) of the Indian Constitution also empowers ο Compensation has not been paid
the court to punish for its contempt.
Then the proceedings for compensation shall be initiated
• However, what is contempt of court per se has not as per the new Act of 2013.
been defined by the Indian Constitution.
►PUDUCHERRY LT. GOVERNOR

►GOVERNMENT CANNOT BRAND ANY
The Madras High Court has set aside judgment of Single Bench
ORGANISATION AS POLITICAL which had held that Puducherry Lt Governor cannot interfere in
Supreme court held that the central government cannot brand the day-to-day affairs of the elected government in the Union
an organisation ‘political’ and deprive it of foreign funds for using Territory. It ruled that the Centre will take the final decision in
legitimate forms of dissent’ like bandh, hartal, road roko or jail matters referred by the Administrator in case of difference of
‘bharo’ to aid a public cause. opinion between her and the Union Territory Government.
• Any organisation which supports the cause of a group of BACKGROUND
citizens agitating for their rights without a political goal or • Earlier, Single Judge Bench of Madras High Court in 2019
objective cannot be penalised by being declared as an had ruled that the Lieutenant-Governor (LG) of Puducherry
organisation of a political nature. cannot interfere in the day-to-day administration of the
• Their foreign funding could continue as long as these Union Territory when there is an elected government.
organisations worked for the “social and political welfare • High Court held that the LG is bound by the aid and advice
of society” and not to further “political interests”. of the Council of Ministers in matters where the Legislative
• The verdict came on a petition challenging certain Assembly is competent to enact laws as contemplated
provisions of the Foreign Contribution Regulation Act under Section 44 of the Government of Union Territories
(FCRA), 2010 and the Foreign Contribution (Regulation) Act, 1963. The Court said incessant interference from the
Rules of 2011, both of which confer the Centre with L-G would amount to running a “parallel government.”
“unguided and uncanalised power” to brand organisations ARTICLE 239A
‘political’ and shut down their access to foreign funds.
• Constitution (Fourteenth Amendment) Act, 1962 added
Article 239A to the Indian Constitution which provides that
►CONSTITUTION BENCH ON COMPENS- Parliament may by law create Legislature having Council of
ATION UNDER LAND ACQUISITION ACT, Ministers for the UT of Puducherry.
1894 • Accordingly, Parliament enacted the Government of

Union Territories Act, 1963.
A five-judge Constitution Bench of the Supreme Court held that
land acquisition proceedings under the 1894 Act will not be • Section 44 of the Act – Council of Minister – There shall be
deemed to have lapsed under Section 24(2) of the Right to Fair a Council of Ministers in each Union territory with the
Compensation and Transparency in Land Acquisition, Chief Minister at the head to aid and advise the
Rehabilitation and Resettlement Act, 2013, if the authorities have Administrator in the exercise of his functions who shall act
deposited the compensation in government’s Treasury. in his/her discretion only in so far as any special
responsibilities were concerned.
COMPENSATION
• However, the Act does not specify the ‘special
• Section 24(1) – It provides for the following instances
responsibilities’ in relation to which the L-G could apply
where land acquisition which took place under the 1894
his/her discretion.
Act would have lapsed:
2
►HARYANA GIVING RESERVATION IN import by amending Mineral (Development and Regulation) Act
1957 and The Coal Mines (Special Provisions) Act, 2015.
PRIVATE JOBS
IMPORTANT ASPECTS OF THE AMENDMENT
State Government of Haryana has prepared draft of the Haryana
State Employment of Local Candidates Ordinance, 2020. The • Companies with no prior experience can apply -
ordinance aims to provide “75% of the new employment to local Companies which do not possess any prior coal mining
candidates for jobs having salary of less than Rs 50,000 per experience in India and/or have mining experience in
month in various privately managed companies, societies, trusts, other minerals or in other countries can participate in
limited liability partnership firms, partnership firms, etc., situated auction of coal/lignite blocks.
in the state of Haryana. • Lifting End-Use-Restriction - The government has lifted
EXPLAINED end-use-restriction for coal mines to end captive mining
regime. Now, the companies which are not ‘engaged in
• The Ordinance of Haryana can be constitutionally
specified end-use’ can also participate in auctions of
challenged to violate Article 19(1)(g) which states that all
Schedule II and III coal mines.
citizens have right to practise any profession, or to carry
on any occupation, trade or business • Wider Participation - The removal of the end use
restriction would allow wider participation in auction of
• The Ordinance can be challenged to violate Article 14 of
coal mines for a variety of purposes such as own
the constitution which ensures equality before the law or
consumption, sale or for any other purpose, as may be
the equal protection of the laws within the territory of
specified by the Central Government.
India.
• PL-cum-ML - The Bill also allows prospecting licence-
• Earlier even Andhra Pradesh Government had provided
cummining lease (PL-cum-ML) for coal/lignite which
75 per cent reservation to locals in government and
increases the availability of coal & lignite blocks, and coal
private jobs. The Andhra Pradesh High Court directed the
blocks of varying grades in a wide geographical
State government to inform if the law on quota for locals
distribution will be available for allocation.
was enacted as per the Constitution.
• Successful Bidders Free to use Coal - The successful
• It was contented that the Reservation provided by Andhra
bidders/allottees have now been entitled to utilize mined
Government is violative of Article 16(2) and Article 16(3) of
coal in any of its plants or plants of its subsidiary or
the Constitution.
holding company. Amendments also provide for allocation
• Article 16 - Equality of opportunity in matters of public of the coal mine to the next successful bidder or allottee,
employment subsequent to termination of its allocation.
(1) There shall be equality of opportunity for all citizens in • Designated Custodian for Management of the Mines - A
matters relating to employment or appointment to any provision has also been made for appointment of
office under the State. Designated Custodian for Management of the Mines, apart
(2) No citizen shall, on grounds only of religion, race, caste, from Schedule II mines, which have come under
sex, descent, place of birth, residence or any of them, be production and whose vesting/ allotment order has been
ineligible for, or discriminated against in respect of, any cancelled.
employment or office under the State. • Environment and Forest Clearances - shall automatically
(3) Nothing in this article shall prevent Parliament from get transferred to the new owners of mineral blocks for a
making any law prescribing, in regard to a class or classes period of two years from the date of grant of new lease.
of employment or appointment to an office under the This will allow new owners to continue with hassle free
Government of, or any local or other authority within, a mining operations. During this period, they may apply for
State or Union territory, any requirement as to residence the fresh licence beyond the period of two years.
within that State or Union territory prior to such • Deciding about New Lease Holders before Expiry of
employment or appointment. Term - It will enable the state government to take advance
action for auction of mineral blocks so that the new lease
►THE MINERAL LAWS (AMENDMENT) holder could be decided before the existing lease gets
ACT, 2020 expired.
• Composite License Allowed - The new provisions will also
Both houses of Parliament have passed The Mineral Laws
augment the exploration of the deep seated minerals and
(Amendment) Bill, 2020 to improve ease of doing business in coal
minerals of national interest by allowing Non Exclusive
sector, boost coal production in India and reduce dependence on
3
Reconnaissance Permit (NERP) holders to apply for A government order had provided absolute reservation in
Composite Licence or Mining Lease (PL-cum-ML). teaching jobs for Scheduled Tribes in the scheduled areas.
BACKGROUND
►NGT ORDER OF VIZAG GAS TRAGEDY • Article 371 (D) of the Constitution of India safeguards
The National Green Tribunal recently passed an order regarding the rights of local people in employment and education
the Vizag Gas Tragedy. Under the order, the LG Polymers, where and was created after agitation in the state of Andhra
the gas leak occurred was held liable according to the Principle of Pradesh. It was incorporated as the 32nd Amendment of
“Strict Liability” of 19th century English law. the Constitution in 1974.
Legal experts claim that the term “absolute liability” should have • The President, under Article 371(D), has issued orders that
been used. a resident of a district/zone cannot apply to another
district/zone for appointment. Thus, the 100% quota
WHAT IS STRICT LIABILITY PRINCIPLE?
deprived residents of the Scheduled Areas of any
According to Strict Liability Principle, a company or a party is
opportunity to apply for teaching posts.
not liable and does not require to pay compensation in case
hazardous substance leaks out from its premises. The
leakage is considered accident. The strict liability evolved in ►COURT HEARINGS THROUGH VIDEO
1868 and provides exemptions from assuming liability. CONFERENCING
WHAT IS ABSOLUTE LIABILITY? The Supreme court stated that under Article 142 of the
According to absolute liability principle, a company operating Constitution “The Supreme Court of India and all high courts are
a hazardous industry cannot claim any exemption. The authorized to adopt measures required to ensure the robust
company has to mandatorily pay compensation. The fact that functioning of the judicial system through the use of video
the tragedy was caused by its negligence or not does not conferencing technologies”.
matter. The principle of “Absolute Liability” is considered as ARTICLE 142 IN CONSTITUTION OF INDIA
part of Article 21 (Right to Life). (1) The Supreme Court in the exercise of its jurisdiction may pass
such decree or make such order as is necessary for doing
►MIZORAM PROVIDES INDUSTRIAL complete justice in any cause or matter pending before it.
STATUS TO SPORTS (2) Subject to the provisions of any law made in this behalf by
Parliament.
Mizoram has become the first Indian state to
accord sports an industry status. The main aim of the decision is
to professionalise sports in the state. ►DEEMED UNIVERSITIES COME UNDER
The government had also recognised tourism as an industry in PREVENTION OF CORRUPTION ACT
2019 for the same reason. Supreme Court ruled that Deemed universities fall within the
BENEFITS ambit of the Prevention of Corruption Act, 1988, and their
• Hassle-free loans at subsidised interest rates employees and trustees are ‘public servants’ who can be
prosecuted for illegal gratification.
• Bring huge private investment into the sector.
The ruling is significant because this is the first time any court in
• Industrial benefits including subsidies, banking facilities
India has held that deemed universities or its staff come under
would now be extended to sports.
the purview of the anti-graft legislation meant for public
• Facilitate the generation of employment in the sports
servants.
sector.
IMPLICATIONS
• Besides football, hockey, wrestling, there are a
• “Deemed Universities” will now be covered under the
number of indigenous games in Mizoram such as, stick
ambit of Prevention of Corruption Act.
fighting, Insuknawra (rod pushing), Kalchhet kal (relay
race using bamboo), Inarpathai (cock fighting) in • No distinction has been carved out between the University
Mizoram. and “Deemed to be University”, so far as it relates to the
term “Public Servant” as defined under Section – 2(c) (xi) of
the Act 1988.
►ANDHRA PRADESH: SC SCRAPS 100%
• It has also widened the scope of the definition of the
RESERVATION IN SCHEDULED AREAS
“Public Servant” and has defined that even if they are not
4
Public Servants; such persons are discharging “Public Duty” NATIONAL CAPITAL TERRITORY OF DELHI
by providing and imparting education. • Article 239AA - It was added by Constitution (Sixty-ninth
Amendment) Act, 1991. The Union Territory of Delhi shall
►HORIZONTAL RESERVATION FOR NEET be called the National Capital Territory of Delhi (NCT) and
the Administrator thereof appointed under Article 239
• The State Government of Tamil Nadu, in a cabinet meeting
shall be designated as the Lieutenant Governor (LG).
has given the go ahead to pass an ordinance to allow
horizontal quota of 10 per cent for students who pass the • Delhi to have Legislative Assembly - There shall be a
National Eligibility cum Entrance Test (NEET) for admission Legislative Assembly for the National Capital Territory
to undergraduate course in medical colleges. (NCT) of Delhi and the seats in such Assembly shall be
filled by members chosen by direct election from territorial
• It is likely that the draft ordinance bill will provide for
constituencies in the NCT of Delhi.
reservation within the existing quota system for students
who clear NEET and who have studied from Classes 1 to 12 • Legislative Powers - The Legislative Assembly of Delhi
in state government schools. shall have power to make laws for the whole or any part of
NCT with respect to any matters enumerated in State List
WHAT IS THE MEANING OF HORIZONTAL RESERVATION?
or in the Concurrent List.
• The concept of vertical and horizontal reservation was
• Restrictions on Legislative Power - Legislative Assembly
explained by the Supreme Court in the famous Indra
of Delhi cannot make laws on the following entries under
Sawhney judgment.
the State List
• The reservations in favour of Scheduled Castes, the
ο Entry 1: Public Order;
Scheduled Tribes and the other backward classes [under
Article 16(4)] may be called vertical reservations. ο Entry 2: Police (including railway and village police);
• Whereas reservations in favour of physically handicapped ο Entry 18: Land

[under Clause (1) of Article 16] can be referred to as • Relation between Council of Ministers & LG of Delhi -
horizontal reservations. There shall be a Council of Ministers consisting of not
• So, we can say that horizontal reservations cut across the more than ten percent, of the total number of members in
vertical reservations - what is called inter-locking the Legislative Assembly. The Chief Minister at the head to
reservations. aid and advise the Lieutenant Governor in the exercise to
his functions in relation to matters with respect to which
the Legislative Assembly has power to make laws, except
►OVERRULING OF DELHI CM’S ORDER BY
when the LG is required to act in his discretion by or under
LIEUTENANT-GOVERNOR any law.
Delhi’s Lieutenant-Governor Anil Baijal in his capacity as • Reference to the President - If there is any difference of
Chairperson of the Delhi Disaster Management Authority has opinion between the Lieutenant Governor and his
overruled two decisions of Delhi government related to COVID-19 Ministers on any matter, the Lieutenant Governor shall
treatment. refer it to the President for decision and act according to
In the first, decision of Delhi Government allowed only residents the decision given thereon by the President.
of Delhi to be treated and admitted in government and private • Immediate Action by LG - However, if the matter sent to
hospitals of Delhi and the second decision, Delhi Government the President is pending before the President, then the
had ordered COVID-19 Test only for symptomatic patients. Lieutenant Governor can take immediate action or give
RIGHT TO HEALTH AS PART OF ARTICLE 21 such direction if he thinks the matter is of urgency or
• The Supreme Court in Bandhua Mukti Morcha vs. Union importance.
of India has held that the right to live with human
dignity is enshrined in art 21 and therefore includes ►REPLACING PERMANENT RESIDENTS OF
protection to health. J&K
• The Supreme Court in Consumer Education and
The term “Permanent Resident” as per Article 35A has been
Resource Centre Vs Union of India - held that the right
replaced by “Domicile of Union territory of Jammu and Kashmir”
to health and Medical care is a fundamental right
as per an order of Ministry of Home Affairs.
under Article 21 of the constitution as it is essential for
making the life of the workman meaningful and purposeful
with dignity of person.
5
CONCEPT OF DOMICILE and includes an elector belonging to the class of senior
• Subsequent to changes to Articles 370 and 35A in August citizen or persons with disability
2019, in March 2020, the concept of “permanent resident • ‘person with disability’ means a person flagged as person
of the State” was discontinued in J&K. with disability in the data base for the electoral roll;
• As per the new domicile rules, those persons and their • ‘senior citizen’ for the purpose of this Part means an
children who have resided for 15 years in J&K, or have elector belonging to the class of absentee voters and is
studied for 7 years and appeared in the Class X or XII exam above 80 years of age;
in an educational institution in the Union Territory of • Engagements in various capacities in the discharge of
Jammu and Kashmir, are eligible for grant of domicile. Essential Services include railways, state transports,
aviation etc.
►THE ELECTION COMMISSION OF INDIA • Section 60 of RPA, 1951 provides for Special procedure
for voting by certain classes of persons
(ECI) HAS MADE IT POSSIBLE FOR SENIOR
Voting by certain classes of persons determined by EC: It
CITIZENS ABOVE THE AGE OF 65 TO
includes such persons as Election Commission may
VOTE BY POSTAL BALLOT determine including any person subjected to preventive
Due to severe impact of COVID-19 on senior citizens, Election detention under any law in India.
Commission has decided not to extend the facility of postal ballot
to voters above 65 years of age in the coming General Elections ►SECRET BALLOT
in Bihar and by- elections due in the near future. However, facility
Supreme Court has highlighted the importance of secret ballot as
of optional postal ballot to electors who are above 80 years of
secrecy of ballot is the cornerstone of free and fair elections in
age, People with Disabilities (PwD) Voters, the electors engaged in
India.
essential services and voters who are COVID-19 positive/suspect
in quarantine (home/institutional) will be extended in these ARTICLE 326
elections. Article 326 highlights that elections to the House of the
WHO ARE ALLOWED TO VOTE THROUGH POSTAL BALLOT People and to the Legislative Assembly of every State shall be
on the basis of adult suffrage and every person who is a
Postal ballot allows such person to vote who cannot be
citizen of India and who is not less than 18 years and is not
present at their voting booth on the day of voting. Voting
otherwise disqualified under this Constitution or any law
through postal ballot is allowed to
made by the appropriate Legislature on the ground of non-
1. Service Voters residence, unsoundness of mind, crime or corrupt or illegal
2. Absentee Voters practice, shall be entitled to be registered as a voter at any
3. Voters on Election Duty such election.
4. Voting by certain classes of persons determined by EC. IMPORTANCE OF SECRECY OF BALLOT
WHO ARE SERVICE VOTERS • The Court highlighted that choice of a voter should be free
and the secret ballot system in a democracy ensures such
• According to the provisions of sub – section (8) of Section
freedom.
20 of Representation of People Act, 1950, service
qualification means • The principle of secrecy of ballots is an important
postulate of constitutional democracy and accordingly has
ο a member of the armed Forces of the Union ; or
been laid down as a statutory law under Section 94 of The
ο a member of a force to which provisions of the Army
Representation of the People Act, 1951 to protect secrecy
Act, 1950 (46 of 1950), have been made applicable
of the ballot.
whether with or without modification;
• Section 94 - Secrecy of voting not to be infringed — No
ο a member of an Armed Police Force of a State, and
witness or other person shall be required to state for
serving outside that state; or
whom he has voted at an election. Provided that this
ο a person who is employed under the Government of section shall not apply to such witness or other person
India, in a post outside India. where he has voted by open ballot.
WHO ARE ABSENTEE VOTERS • Even a remote or distinct possibility that a voter can be
A person belonging to such class of persons as may be forced to disclose for whom she has voted would act as a
notified, under clause (c) of section 60 of Representation of positive constraint and a check on the freedom to exercise
People Act, 1951 and who is employed in essential services of franchise.
6
CAN A VOTER VOLUNTARILY WAIVE THE PRIVILEGE OF specified. The Governor may make regulations for the
NON-DISCLOSURE? peace and good government of any area in the State which
• Supreme Court held that a voter can also voluntarily waive is for the time being a Scheduled Area.
the privilege of non-disclosure. Elaborating on this point, • In making such regulations, the Governor may repeal or
the Court stated that the privilege ends when the voter amend any Act of Parliament or of Legislature of the State
decides to waive the privilege and instead volunteers to or any existing law after obtaining assent of the President.
disclose as to whom she had voted. STATES HAVING FIFTH SCHEDULE AREAS
• No one can prevent a voter from disclosing whom he/she • At present, 10 States namely Andhra Pradesh,
has voted for if they so want to do. Nor can a complaint be Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand,
entertained from any, including the person who wants to Madhya Pradesh, Maharashtra, Odisha, Rajasthan and
keep the voter’s mouth sealed as to why he/she disclosed Telangana have Fifth Schedule Areas.
for whom she voted. • The Fifth Schedule of the Constitution deals with the
administration and control of Scheduled Areas as well as
of Scheduled Tribes residing in any State other than the
►S.C’S FIVE-JUDGE CONSTITUTION
States of Assam, Meghalaya, Tripura and Mizoram. Tribal
BENCH -100 PER CENT RESERVATION habitations in the states of Kerala, Tamil Nadu, Karnataka,
FOR SCHEDULED TRIBES IN SCHEDULED West Bengal, Uttar Pradesh and Jammu & Kashmir have
AREAS OF A STATE IS NOT PERMISSIBLE not been brought under the Fifth or Sixth Schedule.
A five-judge constitution bench struck down a government order

issued by Andhra Pradesh governor which had provided absolute ►COURT RECORDS DO NOT FALL UNDER
reservation for members of the STs for teaching jobs in the RTI – SUPREME COURT
scheduled areas. The apex court has reiterated the Indra A recent Supreme Court verdict has barred citizens from
Sawhney vs Union of India judgement, which capped reservations accessing court records under the RTI Act.
at 50%.
EXPLAINED
CONSTITUTIONAL BENCH
In its recent decision, in the Chief Information Commissioner v.
• Constitution bench is the bench of the Supreme Court of High Court of Gujarat case, the Supreme Court, regrettably,
India which consist of at least five judges of the court. barred citizens from securing access to court records under
• The Chief Justice of India has the power to constitute a the Right to Information (RTI) Act.
Constitution Bench and refer cases to it. • As per S.C’s ruling. The following are “public authorities” as
• It sits to decide any case “involving a substantial per the RTI Act of 2005 and therefore fall under its ambit:
question of law as to the interpretation” of the • Non-governmental organisations (NGOs) “substantially”
Constitution of India” or "for the purpose of hearing any financed by the government
reference" made by the President of India under
• Office of the Chief Justice of India (CJI)
Article 143.
• This provision has been mandated by Article 145 (3) of the
Constitution of India. ►POWER OF SPEAKER TO SUSPEND
SCHEDULED AREAS MEMBERS OF PARLIAMENT
• In the Article 244(1) of the Constitution, expression Seven Congress members were suspended on march,2020 for
Scheduled Areas means such areas as the President may unruly behaviour in the Lok Sabha.
by order declare to be Scheduled Areas. EXPLAINED
• The Governor of each State having Scheduled Areas (SA) • The general principle is that it is the role and duty of the
shall annually, or whenever so required by the President, Speaker of Lok Sabha to maintain order so that the House
make a report to the President regarding the can function smoothly.
administration of Scheduled Areas in that State. • In order to ensure that proceedings are conducted in the
• The Union Government shall have executive powers to proper manner, the Speaker is empowered to force a
give directions to the States as to the administration of the Member to withdraw from the House (for the remaining
Scheduled Areas. part of the day), or to place him/her under suspension.
• The Governor may, by public notification, direct that any THE RULE UNDER WHICH THE SPEAKER CAN SUSPEND AN
particular Act of Parliament or of the Legislature of the M.P
State shall or shall not apply to a SA or any part thereof in
the State, subject to such exceptions and modifications, as
7
• Rules 373, 374 and 374A of the Rules of Procedure and CYCLES OF THE UNIVERSAL PERIODIC REVIEW
Conduct of Business are used by the Speaker to deal with • A review cycle is a four-and-half year period within which
disorderly conduct of MPs. all UN Member states’ human rights records are reviewed.
• The rule 373 gives the Speaker the power to order the MP The working group convenes three two-weeks sessions per
to withdraw from the House for the day. year, or 14 sessions over the course of an entire cycle.
• The rule 374 is used for more unruly members and leads ο First Cycle – 2008-2011
to suspension. ο Second Cycle – 2012-2016
• The rule 374A was introduced to skirt the need for moving ο Third Cycle – 2017-2022
and adopting a motion for suspension.
WHAT IS THE UNIVERSAL PERIODIC REVIEW?
NOTE : The Chairman of the Rajya Sabha does not have the
• The Universal Periodic Review (UPR) is a unique process
power to suspend a member, unlike the Speaker. The
which involves a periodic review of the human rights
Chairman of the Rajya Sabha is empowered to order an MP
records of all 193 UN Member States.
to withdraw from the House for the rest of the day through
• The UPR is a significant innovation of the Human Rights
rule 255 of its Rule Book. He/ she can also suspend the
Council which is based on equal treatment for all
member by using a motion that’s to be passed by the
House.(Unlike Lok Sabha, the motion for suspension of countries.
member of Rajya Sabha is not moved by the Chairman • It provides an opportunity for all States to declare what
but is adopted by the Council.) actions they have taken to improve the human rights
situations in their countries and to overcome challenges to
the enjoyment of human rights.
►SALARY CUT OF MEMBERS OF
• The UPR also includes a sharing of best human rights
PARLIAMENT
practices around the globe.
Cabinet approves ordinance to reduce salaries of PM, Ministers,
HOW WAS THE UPR ESTABLISHED?
MPs by 30% for a year.
• The UPR was established when the Human Rights Council
EXPLAINED
was created on 15 March 2006 by the UN General
• The Salary, Allowances and Pension of Members of Parliament Assembly.
(Amendment) Ordinance, 2020 was promulgated on April 7,
• This mandated the Council to undertake a universal
2020. It amends the Salary, Allowances, and Pension of
periodic review, based on objective and reliable
Members of Parliament Act, 1954.
information, of the fulfilment by each State of its human
• Reduction in salaries: The Act entitles a Member of rights obligations and commitments in a manner which
Parliament (MP) to receive a salary of Rs 1,00,000 per ensures universality of coverage and equal treatment with
month during his term. The Ordinance reduces the salary respect to all States.
of MPs by 30% for a period of one year. This is to raise
WHAT IS THE GOAL OF UPR?
resources to meet the urgent needs arising out of the
COVID-19 pandemic. The reduction will apply from April • The ultimate goal of UPR is the improvement of the human
2020. rights situation in every country with significant
consequences for people around the globe. The UPR is
• The saved amount will go to the Consolidated Fund of
designed to support and expand the promotion and
India to fight the Covid-19 pandemic.
protection of human rights at the ground level.
• The amendment will only cut MPs’ salaries, not
• To achieve this, the UPR involves assessing States’ human
allowances or the pensions of ex-MPs.
rights records and addressing human rights violations
wherever they occur.
►NHRC SUBMITS REPORT TO UNHRC
• UPR assesses the extent to which member states of UN
NHRC submitted the report to UNHRC as part of the third round respect their human rights obligations set out in:
of the Universal Periodic Review (UPR) process, which is done
ο The UN Charter
every four and half years.
ο The Universal Declaration of Human Rights
NHRC report, dated “May 2020”, reviewed the implementation of
ο Human rights instruments to which the State is party
152 recommendations of the UPR Working Group that the Indian
(human rights treaties ratified by the State concerned)
government had accepted in September 2017.
8
ο Voluntary pledges and commitments made by the State • Further, the Parliament (under Article 32) can empower
(e.g. national human rights policies and/or programmes any other court to issue these writs.
implemented) and
ο Applicable international humanitarian law ►PERSONS WITH DISABILITIES ENTITLED
• The UPR also aims to provide technical assistance to States TO SAME RESERVATION AS GIVEN TO
and enhance their capacity to deal effectively with human
SC/ST
rights challenges and to share best practices in the field of
The Supreme Court, in a significant decision, confirmed that
human rights among States and other stakeholders.
persons suffering from disabilities are also socially backward and
Note – For National Human rights commission Act,2019 – entitled to the same benefits of relaxation as Scheduled
Refer Page No 24 (Polity Compass part 1) Caste/Scheduled Tribe candidates in public employment and
education.
►RIGHT TO RESERVATION IS NOT A EXPLANATION
FUNDAMENTAL RIGHT: SUPREME COURT • A three-judge supreme court bench led by Justice Rohinton
Nariman upheld a 2012 judgment of the Delhi High Court
The Supreme Court held that reservation of seats to certain
in Anamol Bhandari (minor) through his father/Natural
communities was not a Fundamental Right, as it refused to
act on a writ petition filed by all political parties from Tamil Nadu Guardian v. Delhi Technological University in a significant
who sought 50% OBC reservation in the all-India NEET seats decision.
surrendered by states. • In Anamol Bhandari Case, the High Court held that
The Supreme Court pointed that a writ petition under Article 32 people suffering from disabilities are also socially
of the Constitution can be filed only in case of violation of backward, and are therefore, at the very least, entitled to
fundamental rights.
the same benefits as given to the Scheduled Caste/
In an earlier judgement, the Court had also ruled that Scheduled Tribe candidates.
reservation in promotion too is not a fundamental right.
EXPLANATION
►RESERVATION FOR MARATHAS
• The Supreme Court has ruled that there is no fundamental
right to reservations in appointments and promotions The Bombay High Court upheld reservation for Marathas in
under articles 16(4) and 16(4A) of the Constitution. the State but quashed the 16% quota by calling it “not
justifiable”. The court held that it should not exceed 12-13%
• That it was the discretion of the governments, either at the
state or central level, to grant reservation. reservation as recommended by the Maharashtra State
Backward Class Commission (MSBCC).
OTHER BACKWARD CLASS (OBC) RESERVATION
• The state (both Centre and the states) is empowered to BACKGROUND
make provision for the advancement of OBCs regarding • The law created a group called ‘Socially and
their admission to educational institutions and Educationally Backward Class’ and included Marathas as
government jobs. the sole group under the category, and extended 16%
• In the Indra Sawhney 1992 judgement (Mandal reservation outside the existing quotas for Scheduled
Commission Case), the Supreme Court fixed quota limit for Castes and Tribes, and other tribes and backward classes.
OBCs at 27%. Further it held, the upper limit for the
ο The foremost hurdle was the fact that the additional
combined reservation quota i.e. should not exceed 50% of
Maratha component would take the reservation up to
seats.
68%, thus going beyond the limit of 50% imposed by the
• State governments have different quota limits for OBCs in
Supreme Court.
their state. E.g Tamil Nadu has mandated 50% reservation
for OBCs. ο Secondly, there were doubts whether one particular
WRIT JURISDICTION caste group could constitute a special class.
• The Supreme Court under Article 32 and the High courts JUDGEMENT
under Article 226 of the Constitution can issue the writs of • The judgement ruled that there were “exceptional
habeas corpus, mandamus, prohibition, certiorari and circumstances and an extraordinary situation” to warrant
quo-warranto. the crossing of the 50% limit.
9
• It has upheld the government’s decision to accept the • CET will be held in 1,000 centres across India in a to bid
Maharashtra Backward Classes Commission’s report on remove the currently prevalent urban bias. There will be
the backwardness of the Maratha community. But faulted an examination centre in every district of the
it for exceeding the panel’s recommendation to 12% for country. There will be a special thrust on creating
examination infrastructure in the 117 aspirational districts.
education and 13% for jobs and asked to pull back the
figure to the recommended level. • CET will be a first level test to shortlist candidates and the
score will be valid for three years.
• Court held that the failure to treat this group as backward
• The best of the valid scores shall be deemed to be the
for decades has pushed its members deeper into social
current score of the candidate. There shall be no
and educational backwardness. Thus, an extraordinary
restriction on the number of attempts to be taken by a
situation has been created wherein the State had to treat
candidate to appear in the CET subject to the upper age
them as a separate category. limit. Relaxation in the upper age limit shall be given to
candidates of SC/ST/OBC and other categories as per the
extant policy of the Government.
BODIES IN NEWS • Initially the scores would be used by the three major
recruitment agencies. However, over a period of time it is
►NATIONAL RECRUITMENT AGENCY expected that other recruitment agencies in the Central
• It is a multi-agency body that will conduct a Common Government would adopt the same. Further, it would be
Eligibility Test (CET) to screen/shortlist candidates for open for other agencies in the public as well as private
Group B and C (non-technical posts). It will have domain to adopt it if they so choose. Thus, in the long run,
representatives of Ministry of Railways, Ministry of the CET score could be shared with other recruiting
Finance/Department of Financial Services, SSC, RRB and agencies in the Central Government, State
IBPS. It is envisioned that the NRA would be a specialist Governments/Union Territories, Public Sector Undertaking
body bringing the state-of-the-art technology and best and Private Sector. This would help such organizations in
practices to the field of Central Government recruitment. saving costs and time spent on recruitment.
• The NRA will conduct the Common Eligibility Test (CET) for • There shall be no restriction on the number of attempts to
recruitment to non-gazetted posts in government and be taken by a candidate to appear in the CET subject to the
public sector banks. This test aims to replace multiple upper age limit. Age relaxation for SC/ST and OBC
examinations conducted by different recruiting agencies candidates as per existing rules will apply.
for selection to government jobs advertised each year, • The Government also plans to provide outreach and
with single online test. awareness facility to assist candidates in rural and far flung
• The body will be headed by an officer of the rank of areas to familiarize them with the online examination
Secretary to Government of India. National Recruitment system. 24x7 helpline will be set up for answering queries,
Agency will be a Society registered under the Societies complaints and queries.
Registration Act. It will function under the Ministry of
Personnel, Public Grievances and Pensions. ►DRUG CONTROLLER GENERAL OF INDIA
SALIENT FEATURES (DCGI)
• CET will be held twice a year.
The Drug Controller General of India (DCGI) has approved the
• There will be different CETs for graduate level, 12th Pass first fully indigenously developed conjugate vaccine for
level and 10th pass level to facilitate recruitment to pneumonia- Pneumococcal Polysaccharide Conjugate Vaccine.
vacancies at various levels.
DRUG CONTROLLER GENERAL OF INDIA (DCGI
• The CET will be conducted in 12 major Indian languages.
• Drugs Controller General of India (DCGI) is a department of
This is a major change, as hitherto examinations for
the Central Drugs Standard Control Organization of the
recruitment to Central Government jobs were held only in
Government of India.
English and Hindi.
• It is responsible for approval of licences of specified
• To begin with CET will cover recruitments made by three
categories of drugs such as blood and blood products, IV
agencies : viz. Staff Selection Commission, Railway
fluids, vaccines, and sera in India.
Recruitment Board and the Institute of Banking Personnel
• It comes under the Ministry of Health & Family Welfare.
Selection. This will be expanded in a phased manner.
10
CENTRAL DRUGS STANDARD CONTROL ORGANIZATION standards and suggest measures for improvement in
(CDSCO) the quality of service;
• The CDSCO under Directorate General of Health Services, ο Perform such other functions and duties as may be
Ministry of Health & Family Welfare is the National necessary or incidental to the aforesaid functions and
Regulatory Authority (NRA) of India. duties.
• The Drugs & Cosmetics Act,1940 and rules 1945 have • Powers:
entrusted various responsibilities to central & state ο It can probe listed companies and those unlisted public
regulators for regulation of drugs & cosmetics to ensure companies having paid-up capital of no less than Rs 500
safety, rights and wellbeing of the patients. crore or annual turnover of no less than Rs 1,000 crore.
• Under the Drugs and Cosmetics Act, CDSCO is responsible ο It can investigate professional misconduct committed
for approval of New Drugs, Conduct of Clinical Trials, laying by members of the Institute of Chartered Accountants
down the standards for Drugs, control over the quality of of India (ICAI) for the prescribed class of body corporate
imported Drugs in the country and coordination of the or persons.
activities of State Drug Control Organizations by providing
TECHNICAL ADVISORY COMMITTEE (TAC) TERMS OF
expert advice with a view of bring about the uniformity in
REFERENCE (TOR)
the enforcement of the Drugs and Cosmetics Act.
• Advice on the development of measures of audit quality.
• Further CDSCO along with state regulators, is jointly
• Advice on suitable methods for promoting awareness.
responsible for grant of licenses of certain specialized
categories of critical Drugs such as blood and blood • Relating to compliance with accounting and auditing
products, I. V. Fluids, Vaccine and Sera. standards.
• Of the role of the NFRA in protecting investors through
►NFRA CONSTITUTES TECHNICAL independent auditor regulation.
ADVISORY COMMITTEE
►NATIONAL INTELLIGENCE GRID
The audit regulator, National Financial Reporting Authority
(NFRA), has constituted a Technical Advisory Committee (TAC) (NATGRID)
under the Chairmanship of R Narayanaswamy, Professor, Indian National Intelligence Grid (NATGRID) has signed a memorandum
Institute of Management, Bengaluru. of understanding with the National Crime Records Bureau
NATIONAL FINANCIAL REPORTING AUTHORITY (NFRA) (NCRB).
• After the Satyam scandal took place in 2009, the Standing NATGRID
Committee on Finance proposed the concept of the • National Intelligence Grid or NATGRID is the integrated
National Financial Reporting Authority (NFRA). intelligence master database structure for counter-
• Companies Act, 2013 then gave the regulatory framework terrorism purpose connecting databases of various core
for composition and constitution of an independent security agencies under Government of India.
regulator to oversee the auditing profession and • It was conceptualised in 2009, in the wake of the 2008
accounting standards in India. Mumbai attack that exposed several weaknesses in India's
• It came into existence in October 2018. intelligence gathering and action networks.
• The Companies Act requires the NFRA to have a • A master database of 21 databases designed to provide
chairperson who will be appointed by the Central real-time information to fight terror and crime.
Government and a maximum of 15 members. • The database shall involve data including that related to
• Duties: credit and debit cards, tax, telecom, immigration, airlines
ο Recommend accounting and auditing policies and
and railway tickets, passports, driving licenses.
standards to be adopted by companies for approval by • It will be available for nine central agencies including
the Central Government; the Intelligence Bureau, Research and Analysis Wing, the
Enforcement Directorate and Department of Revenue
ο Monitor and enforce compliance with accounting
standards and auditing standards; Intelligence.
ο Oversee the quality of service of the professions

• It is expected to be rolled out by the end of 2020.
associated with ensuring compliance with such
11
NATIONAL CRIME RECORDS BUREAU • The objectives of public service broadcasting are achieved
• NCRB was set-up in 1986 to function as a repository of in terms of Prasar Bharati Act through All India Radio and
information on crime and criminals so as to assist the Doordarshan, which earlier were working as media units
investigators in linking crime to the perpetrators. under the Ministry of Information & Broadcasting and
since November 1997 have become constituents of Prasar
• It was set up based on the recommendation of the Task
Bharati.
force and National Police Commission by merging the
Directorate of Coordination and Police Computer (DCPC), ►UNMANNED AIRCRAFT SYSTEM (UAS)
Statistical Branch of BPR&D, Inter State Criminals Data RULES OF 2020 NOTIFIED
Branch of CBI and Central Finger Print Bureau of CBI.
• The Ministry of Civil Aviation notified the draft rules, known as
• NCRB brings out the annual comprehensive statistics of Unmanned Aircraft System Rules, 2020, for importing,
crime across the country through ‘Crime in India’ report. manufacturing and owning drones as well as for drone ports,
Being published since 1953, the report serves as a crucial or airports for drones.
tool in understanding the law and order situation across
• Earlier, the government had issued drone regulations 1.0
the country.
and the drone regulations 2.0. The government has also
• It developed Crime and Criminal Tracking Network and finalized National Counter Rogue Drone Guidelines for
Systems (CCTNS) in 2009 that digitises data related to FIR handling the threats from Unmanned Aircraft Systems.
registration, investigation and charge sheets in
RULES
approximately 15000 police stations and 6000 higher
offices across the country, leading to the development of a • The notification gave powers to Directorate General of Civil
national database of crimes and criminals. Aviation (DGCA) to carry out the registrations to ensure
easier restrictions can be imposed on their operations
based on their threat perceptions and payload capacities.
►PRASAR BHARATI & PTI
• Applicability:
Prasar Bharati in a letter to Press Trust of India (PTI) has
ο UAS registered in India, wherever they may be; or
expressed displeasure over the kind of reporting done by the
agency as PTI carried an interview with Chinese ambassador ο a person owning or possessing or engaged in importing,
Sun Weidong, where the Chinese Ambassador blamed India manufacturing, trading, leasing, operating, transferring
for the India-China violent standoff. According to Prasar or maintaining a UAS in India; or
Bharati, PTI’s recent coverage was “detrimental to national ο all UAS for the time being in or over India
interest” and undermined India’s “territorial integrity”. • Categories of Unmanned Aircraft System (UAS)
PRESS TRUST OF INDIA ο Remotely Piloted Aircraft System (RPAS);
• PTI is headquartered in the national capita is the largest ο Model Remotely Piloted Aircraft System;
news agency in India.
ο Autonomous Unmanned Aircraft System.
• It is a non-profit cooperative of more than 500 Indian
• The Unmanned Aircraft (UA) shall be classified based
newspapers.
upon the Maximum All-Up-Weight (including payload)
• PTI took over the operations of the Associated Press of of the UA as under:
India from Reuters after India's independence in 1947.
ο Nano: Less than or equal to 250 gram;
• PTI is a non-profit trust and is run by a Board of Directors
ο Micro: Greater than 250 gram and less than or equal to
with the Chairmanship going by rotation at the Annual
2 kilogram;
General Meeting.
ο Small: Greater than 2 kilogram and less than or equal
• The day-to-day administration and management of PTI is
to 25 kilogram;
headed by the Chief Executive Officer.
ο Medium: Greater than 25 kilogram and less than or
PRASAR BHARATI
equal to 150 kilogram; and
• Prasar Bharati, which is the Broadcasting Corporation for
ο Large: Greater than 150 kilogram.
India is a statutory autonomous body established under
the Prasar Bharati (Broadcasting Corporation of India) Act, A Nano-class unmanned aircraft shall be regarded in the
1990 and came into existence in November 1997. next higher category if it exceeds either the maximum
speed in level flight limited to 15 meters/second or
• It is the Public Service Broadcaster of the country.
maximum attainable height limited to 15 metre and range
limited to 100 metre from the remote pilot.
12
• Requirements/Eligibility conditions for authorisation: • New Category Buy (Global – Manufacture in India) has
An individual who is been introduced with minimum 50% indigenous content
on cost basis of total contract value.
ο A citizen of India, and
• Leasing introduced as a new category i.e, Lease (Indian)
ο 18 years of age or more; or
where Lessor is an Indian entity and is the owner of the
A company or a body corporate provided that- assets and Lease (Global) where Lessor is a Global entity.
ο it is registered and has its principal place of business
within India, and
►CAUVERY WATER MANAGEMENT
ο the Chairman and at least two-thirds of its directors are
AUTHORITY
citizens of India, and
Cauvery Water Management Authority (CWMA) as per the
ο the substantial ownership and effective control shall
directions of Supreme Court has been brought within the
vest in Indian nationals;
administrative control of Union Ministry of Jal Shakti. However
• Unless suspended, revoked or cancelled, an authorisation apart from meeting the procedural requirement, the notification
issued for a drone shall remain valid up to five years and does not alter the character, functions or powers of the CWMA.
can be renewed through application, provided all eligibility
But, some opposition party as well as some farmers’ association
criteria is met by the applicant.
in Tamil Nadu are upset with this move of the central
• No drone or part or component shall be imported or government as it makes CWMA more of a central appointee
manufactured in India unless ‘Certificate of Manufacture‘ is without any discretionary power at the level of state.
obtained. For import of a drone or part or component, the
BACKGROUND OF CWMA
‘Authorised UAS Importer‘ shall apply to the DGCA for
clearance. • Supreme Court in its judgment of February, 2018 had
directed the Central Government to draft a scheme under
• The owners and operators of a drone would have to
Section 6A of the Inter-State River Water Dispute Act, 1956
acquire a ‘Unique Identification Number’ (UIN) and the
within a span of six weeks to implement the Tribunal’s
drones are to fly only in permitted areas pre-identified on Award.
an online mapping platform.
• Section 6A authorises the Central Government to make
• No imported or manufactured drone other than a schemes to implement decision of Tribunal constituted for
compliant one, as specified by the DGCA, shall be operated adjudication of disputes.
in India.
• The Central Government as per the directions of the
honourable Court had submitted the Cauvery Draft Water
►DRAFT OF DEFENCE PROCUREMENT Management Scheme - comprising – Cauvery Water
Management Authority (CWMA) and Cauvery Water
PROCEDURE 2020
Regulation Committee (CWRC) to give effect to the decision
Unveiled draft Defence Procurement Procedure (DPP) 2020 aims of Cauvery Water Dispute Tribunal (CWDT) as modified by
at further increasing indigenous manufacturing and reducing the Hon’ble Supreme Court as per its 2018 judgment.
timelines for procurement of defence equipment.
STATES CONCERNED
KEY CHANGES PROPOSED IN THE NEW DPP Kerala, Karnataka, Tamil Nadu and Puducherry
• Indigenous Content ratio hiked - The Draft proposes COMPOSITION
increasing the Indigenous Content (IC) stipulated in various
• It will be headed by the Chairman, a senior and eminent
categories of procurement by about 10% to support the
engineer or a Secretary/Additional Secretary-level
‘Make in India’ initiative. A simple and realistic
executive with experience in handling inter-state water
methodology has been incorporated for verification of disputes.
indigenous content for the first time.
• The Authority will have two whole-time members and six
• Use of raw materials, special alloys and software part-time members, including one each nominated from
incentivised as use of indigenous raw material is a very the riparian States.
important aspect of ‘Make in India’ and Indian Companies
TENURE
are world leaders in software.
The tenure of the Chairman will be for five years, while the
• Assurance of procurement on a single vendor basis tenure of other members will be three years and can be
from Aero Engine manufacturing unit and chips from FAB extended upto five years.
manufacturing units established in the country.
13
FUNCTIONS • NEWMA will also evolve a consolidated strategy for
• The Authority will regulate management of the region’s water resources and also will take
care of conservation aspects of natural resources.
ο The control of Cauvery water,
ο Supervise of operation of reservoirs,
• Union Ministry of Jal Shakti aims to create NEWMA through a
draft Bill which will be presented very soon in the Parliament.
ο Regulate the release of water by Karnataka to Tamil
Nadu from the Biligundlu gauge and discharge station. ABOUT NORTH EAST WATER MANAGEMENT AUTHORITY
(NEWMA)
►NATIONAL COMMISSION FOR • A high-level committee for proper management of water

resources in the north-eastern region has been set up
PROTECTION OF CHILD RIGHTS
under the chairmanship of Vice Chairman, NITI Aayog.
National Commission for Protection of Child Rights (NCPCR) has
• The committee has prepared an action plan for
pulled up the Rajasthan government for its new guidelines on
development of water resources in the region, including
elementary education that “violate” the Right to Education Act,
hydro power, inland transport, irrigation and drinking
2009 and deny children from economically weaker sections the
water.
right to free education in nursery classes.
• The committee has recommended setting up a new
ABOUT NATIONAL COMMISSION FOR PROTECTION OF
entity—North Eastern Water Management Authority
CHILD RIGHTS (NCPCR)
(NEWMA)—parallel to the Brahmaputra Board for the
• It is a statutory body Set up in 2007 under the proper management of water resources in the north-
Commissions for Protection of Child Rights (CPCR) Act, eastern region.
2005.
• The report of the expert committee for suggesting
• It’s under the administrative control of the Ministry of immediate measures for proper management of water
Women & Child Development. resources in north-eastern India and a draft report of the
• The National Commission's Mandate is to ensure that all high-level committee has already been submitted and
Laws, Policies, Programmes, and Administrative circulated to the states for their views and suggestions.
Mechanisms are in consonance with the Child Rights • The final report of the high-level committee for proper
perspective as enshrined in the Constitution of India and management of resources in the north-east has been
also the UN Convention on the Rights of the Child. ( The published and circulated to states. The formation of the
Child is defined as a person in the 0 to 18 years age group). NEWMA is in process.
• The Commission shall, while inquiring into any matter of
children shall have all the powers of a Civil Court trying a
suit under the Code of Civil Procedure, 1908 . SCHEMES
• The Commission shall submit an annual report to the
Central Government and to the State Government ►NATIONAL INITIATIVE FOR SCHOOL
concerned and may at any time submit special reports on HEADS AND TEACHERS HOLISTIC
any matter which according to the Commission is of urgent
ADVANCEMENT (NISHTHA)
necessity.
ABOUT
• For the purpose of providing speedy trial of offences
against children or of violation of child rights, the State • It is a capacity building programme for "Improving Quality
Government may, with the concurrence of the Chief Justice of School Education through Integrated Teacher Training".
of the High Court, by notification, specify at least a court in • It aims to build competencies among all the teachers and
the State or specify, for each district, a Court of Session to school principals at the elementary stage.
be a Children's Court to try offences against children. • The functionaries (at the state, district, block, cluster level)
shall be trained in an integrated manner on learning
►NORTH EAST WATER RESOURCES outcomes, school based assessment, learner – centred
pedagogy, new initiatives in education, addressing diverse
MANAGEMENT (NEWMA)
needs of children through multiple pedagogies, etc.
• India will soon set up a North East Water Management
• This is being organized by constituting National Resource
Authority (NEWMA) as an apex body to develop all water and
Groups (NRGs) and State Resource Groups (SRGs) at the
river based projects in the region.
National and the State level who will be training 42 lakhs
teachers subsequently.
14
• A robust portal/Management Information System (MIS) for Ministry of Housing & Urban Affairs (MoHUA), and All India
delivery of the training, monitoring and support Council for Technical Education (AICTE) have jointly launched an
mechanism has been infused with this capacity building online portal for “The Urban Learning Internship Program
initiative. (TULIP)”. It is a program to provide internship opportunities to
fresh graduates in all Urban Local Bodies (ULBs) and Smart Cities
MAIN EXPECTED OUTCOMES FROM NISHTHA ARE
across India.
• Improvement in learning outcomes of the students.
BENEFITS TO LAUNCH TULIP
• Creation of an enabling and enriching inclusive classroom
• TULIP has been conceived pursuant to the Budget 2020- 21
environment
announcement by the Finance Minister under the theme
• Teachers become alert and responsive to the social, ‘Aspirational India’.
emotional and psychological needs of students as first • Budget Announcement: “The Government proposes to
level counsellors. start a program whereby the urban local bodies across the
• Teachers are trained to use Art as pedagogy leading to country would provide internship opportunities to fresh
increased creativity and innovation among students. engineers for a period up to one year.” TULIP will help reap
• Teachers are trained to develop and strengthen personal- the benefits of India’s demographic dividend as it is poised
to have the largest working-age population in the world in
social qualities of students for their holistic development.
the coming years.
• Creation of healthy and safe school environment.
• Exposure of technical graduates - India has a substantial
• Integration of ICT in teaching learning and assessment. pool of technical graduates for whom exposure to real
• Developing stress free School Based Assessment focused world project implementation and planning is essential for
on development of learning competencies. professional development. General education may not
• Teachers adopt Activity Based Learning and move away reflect the depth of productive knowledge present in
society. Instead of approaching education as ‘doing by
from rote learning to competency based learning.
learning,’ our societies need to reimagine education as
• Teachers and School heads become aware of new
‘learning by doing.’
initiatives in school education.
• Creating Potential Talent Pool - TULIP would help
• Transformation of the Heads of Schools into providing enhance the value-to-market of India’s graduates and help
academic and administrative leadership for the schools for create a potential talent pool in diverse fields like urban
fostering new initiatives. planning, transport engineering, environment, municipal
finance etc. Thus not only catalysing creation of
►AMENDMENTS TO PRIME MINISTER prospective city managers but also talented private/
nongovernment sector professionals.
RESEARCH FELLOWSHIP SCHEME (PMRF)
• Benefiting ULBs & SMART Cities - TULIP would benefit
Union HRD Minister announces modifications in PMRF Scheme to ULBs and smart cities immensely. TULIP- “The Urban
enable more students to avail of the benefits and to boost Learning Internship Program” would help fulfil twin goals
research in the country. of providing interns with hands-on learning experience as
PMRF SCHEME 2020 well as infusing fresh energy and ideas in the functioning
• The candidates pursuing master’s level courses from any of India’s ULBs and Smart Cities.
Indian institute can now apply for the research • Fresh Ideas by Youth Engagement -It will lead to infusion
programme. of fresh ideas and energy with engagement of youth in co-
creation of solutions for solving India’s urban challenges.
• Now the candidates have a choice to apply for the
More importantly, it will further Government’s endeavours
scholarships through direct or lateral mode.
to boost community partnership and government -
• The GATE scores have been revised for the PMRF academia-industry-civil society linkages.
programme, reduced from 750 to 650.
MEMORANDUM OF UNDERSTANDING (MOU) SIGNED FOR
• The changes would be effective from the academic session TULIP
of 2020-21. • An MoU has also been signed between MoHUA and AICTE
which lays down roles and responsibilities of AICTE and
►THE URBAN LEARNING INTERNSHIP MoHUA over a period of 5 years.
PROGRAM (TULIP) • Technical support for the platform shall be anchored by

AICTE and the programmatic non-technical support shall
be anchored by MoHUA.
15
• A Steering Committee under the Chairmanship of • DigiDoctor: It is a comprehensive of all doctors that has
Secretary, HUA including Chairman AICTE and other details pertaining to their qualification, specialisation and
officials from MoHUA and AICTE has also been constituted work experience.
to review the progress of the program on a periodical
• Health Facility Registry: It is a searchable, centrally
basis.
managed, comprehensive repository of all health facilities,
public and private available in the country.
►23 ADDITIONAL MINOR FOREST • Personalised Health Records: A managed record of
PRODUCE INCLUDED IN MINIMUM patients information in electronic format, that is
SUPPORT PRICE LIST manageable and interoperable with various subsystems. It
also provides a consolidated view of information from
Ministry of Tribal Affairs has announced Inclusion of 23
multiple sources and conforms to industry standards.
additional Minor Forest Produce (MFP) items under the Centrally
Sponsored Scheme titled "Mechanism for Marketing of Minor • Electronic Medical Records: An electronic version of the
Forest Produce (MFP) through Minimum Support Price (MSP) patients medical history, generated at a particular medical
and development of value chain of MFP” (MSP for MFP facility.
Scheme). This decision enhanced the coverage from 50 to 73 PRIVACY FEATURES
items. • It is a purely voluntary scheme with the citizens and their
MINOR FOREST PRODUCE. rights at the core.
MFP comprises all non-timber forest produce of plant origin • Privacy and data security by design architecture
such as bamboo, brush wood, stumps, cane, tussar, cocoons, • Digital identity will be shared only after patient's informed
honey, wax, lac, tendu or kendu leaves, medicinal plants and consent and only with certified doctors
herbs, roots, tubers, etc, according to the Forest Rights Act,
• Patients can determine time and duration of consent and
2006.
revoke it anytime
ABOUT MSP FOR MFP SCHEME
• No personalised information will be shared
• The scheme, launched by the Centre in August 2013,
• No sharing for commerical use
provides fair price for MFP collected by tribals through
MSP.
►NEW EDUCATION POLICY 2020
• It is designed as a social safety net for improvement of
livelihood of MFP gatherers by providing them fair price for • Union cabinet approved the New Education Policy 2020
the MFPs they collect. to replace the thirty-four year old National Policy on
Education (NPE), 1986. The policy is built on the
• The scheme is applicable in all States.
foundational pillars of Access, Equity, Quality, Affordability
and Accountability.
►NATIONAL DIGITAL HEALTH MISSION
• The Policy was set up after wide deliberations. Two
• The scheme will be implemented by National Health committees T S R Subramaniam Committee for Evolution
Authority. National Health Authority also implements of New Education Policy and finally the K Kasturirangan
the PM-Jan Arogya Yojana. Committee drafted the New Education Policy.
• Under this scheme, Health ID will be given to every Indian. SALIENT FEATURES OF NEW EDUCATION POLICY
This health account will contain details of every test, every
• New Policy aims for Universalization of Education from
disease, the doctors visited, the medicines taken and the
pre-school to secondary level with 100 % GER in school
diagnosis. This information will be very useful as it is
education by 2030
portable and easily accessible even if the patient shifts to
• NEP 2020 will bring 2 crore out of school children back into
new place and visits a new doctor. National digital health
the main stream
mission is holistic, voluntary healthcare programme which
will integrate doctors, hospitals, pharmacies, insurance • New 5+3+3+4 school curriculum with 12 years of schooling
companies and make a digital health infrastructure. The and 3 years of Anganwadi/ Pre-schooling
health ID card is created with details like Aadhar and • Emphasis on Foundational Literacy and Numeracy, no rigid
mobile number and generate unique ID for each separation between academic streams, extracurricular,
individual. The national digital health mission includes vocational streams in schools ; Vocational Education to
health ID, digidoctor, telemedicine, ePharmacy , healthcare start from Class 6 with Internships
registry and personal health records digitally stored.
16
• Teaching upto at least Grade 5 to be in mother tongue/ • In line with the Sustainable Development Goal for
regional language education (SDG 4), the program will help produce better
• Assessment reforms with 360 degree Holistic Progress data on learning levels by improving the National
Card, tracking Student Progress for achieving Learning Achievement Survey (NAS). India’s participation in PISA is a
Outcomes historic strategic decision by the Government of India to
obtain data on how India’s learning levels compare
• GER in higher education to be raised to 50 % by 2035 ; 3.5
globally.
crore seats to be added in higher education
• India has successfully achieved gender parity in
• Higher Education curriculum to have Flexibility of Subjects
enrolment in primary education. However, for many
• Multiple Entry / Exit to be allowed with appropriate children, secondary education is the stage when they leave
certification school and enter the workforce. Under STARS, each state is
• Academic Bank of Credits to be established to expected to not only stabilize this downward trend but
facilitate Transfer of Credits also improve the completion rate for secondary
• National Research Foundation to be established to foster a education.
strong research culture
• Light but Tight Regulation of Higher Education, single ►SWADES: SKILL MAPPING EXERCISE
regulator with four separate verticals for different
FOR RETURNING CITIZENS
functions
The Union Govt. has launched a new initiative SWADES (Skilled
• Affiliation System to be phased out in 15 years with graded
Workers Arrival Database for Employment Support) to conduct a
autonomy to colleges
skill mapping exercise of the returning citizens under the Vande
• NEP 2020 advocates increased use of technology with
Bharat Mission.
equity; National Educational Technology Forum to be
EXPLAINED
created
• Initiative by - the Ministry of Skill Development and
• NEP 2020 emphasizes setting up of Gender Inclusion
Entrepreneurship, Civil Aviation Ministry and External
Fund, Special Education Zones for disadvantaged regions
Affairs Ministry.
and groups
• MSDE’s implementation arm National Skill Development
• New Policy promotes Multilingualism in both schools and
Corporation (NSDC) is supporting the implementation of
HEs; National Institute for Pali, Persian and Prakrit , Indian
the project.
Institute of Translation and Interpretation to be set up
• Aim- to create a database of qualified citizens based
on their skill sets and experience.
►WORLD BANK'S STARS PROJECT
• The collected information will be shared with the
The World Bank recently approved a $500 million Strengthening
companies for suitable placement opportunities in the
Teaching-Learning and Results for States Program (STARS) to
country.
improve the quality and governance of school education in six
Indian states. • The returning citizens are required to fill up an online
SWADES Skills Card.
EXPLAINED
• The states include Himachal Pradesh, Kerala, Madhya
►JAGANANNA CHEDODU SCHEME
Pradesh, Maharashtra, Odisha, and Rajasthan.
• The STARS program builds on the long partnership
LAUNCHED
between India and the World Bank (since 1994), for The Andhra Pradesh government recently launched
strengthening public school education. “Jagananna Chedodu” scheme. The scheme is to provide
• At the national level, through the Samagra Shiksha, and in financial assistance to barbers, tailors and washer men.
partnership with the states of Himachal Pradesh, Kerala, EXPLAINED
Madhya Pradesh, Maharashtra, Odisha, and The Jagananna Chedodu scheme is to provide Rs 10,000 per
Rajasthan, STARS will also help improve learning person. It is to benefit 2.47 lakhs of barbers, washer men and
assessment systems; strengthen classroom instruction tailors.
and remediation; facilitate school-to-work transition; and
strengthen governance and decentralized management.
17
►PANCHVATI YOJANA LAUNCHED ►STATE HEALTH REGISTER TO BE

The government of Himachal Pradesh launched the Panchvati LAUNCHED BY KARNATAKA
Yojana for senior citizens in the rural areas of the state. GOVERNMENT: FIRST OF ITS KIND
EXPLAINED Karnataka State Government announced that it will launch a
• About 100 parks are to be developed in the state under “State Health Register” to collect data of all its citizens.
the scheme. It aims to help the senior citizens spend their EXPLAINED
leisure time in these parks and gardens.
• The register is first of its kind in the country.
• The scheme is to be implemented with the help of local
• Register will hold names of all the citizens of the state. The
labourers that will receive wages under MGNREGA.
need to maintain such a register has been raised by
COVID-19.
►“OPERATION SHIELD” LAUNCHED BY
• Aim- The survey to create the register is to be conducted
THE DELHI GOVERNMENT by visiting to each and every household. The data will help
Delhi Government has launched the ‘Operation SHIELD’ to curb the the state government in allocating funds, better
spread of COVID-19 in the national capital. implementation of the schemes, efficient resource
EXPLAINED management.
• The Operation SHIELD will be implemented in 21

containment zones as a necessary action to protect the ►SHAHAKAR MITRA SCHEME LAUNCHED
people of Delhi from COVID-19.
Sahakar Mitra, a Scheme on Internship Programme (SIP) was
• In the Operation SHIELD: launched by the Ministry of Agriculture & Farmers’ Welfare.
ο S stands for: Sealing of area EXPLAINED
ο H stands for: Home quarantine • Aim-The scheme has been launched to assist the
ο I stands for: Isolation of infected patients cooperative institutions to access innovative ideas of
ο E stands for: Essential services ensured young professionals. In return the young interns will gain
confidence to become self-reliant in the field.
ο L stands for: Local sanitisation
• The cooperative on the other hand will learn about the
ο D stands for: Door to door survey
latest technologies and practices that help boost
• The Delhi government has made it mandatory for the agriculture and its allied sector.
people of Delhi to wear masks while stepping out of their
• It is an initiative of the National Cooperative Development
houses.
Cooperation (NCDC).
►NITI AAYOG LAUNCHES “SURAKSHIT

►PRADHAN MANTRI GAREEB KALYAN
DADA-DADI” & “NANA NANI ABHIYAN”
ANNA YOJANA
NITI Aayog has virtually launched a campaign in association
Union Government has extended PM Garib Kalyan Anna
with Piramal Foundation to protect senior citizens during COVID-
Yojana for five months till November-end for distributing free
19. The campaign has been titled as “Surakshit Dada-Dadi & Nana-
food grains to the poor.
Nani Abhiyan”.
EXPLAINED
EXPLAINED
• Aim- ensuring sufficient food for the poor and needy
• NITI Aayog along with Primal Foundation launched
during the Covid-19 crisis.
Surakshit Dada-Dadi and Nana-Nani Abhiyan.
• Beneficiaries will be provided 5 kg free wheat/rice per
• It aims to ensure the well-being of senior citizens during
person / month along with 1 kg free whole chana to each
the COVID-19 pandemic.
family per month for a period of three months between
• The “Surakshit Dada-Dadi & Nana-Nani Abhiyan” targets to April and June 2020, which has now been extended
cover 2.9 million senior citizens in 25 AspirationalDistricts for five more months.
across various states such as Assam, Bihar, Jharkhand, MP,
Maharashtra, Rajasthan & Uttar Pradesh.
18
ELIGIBILITY • The green shoe option is a clause in the underwriting
• Families belonging to the Below Poverty Line - Antyodaya agreement of an IPO, which allows the company to sell
Anna Yojana (AAY) and Priority Households (PHH) additional shares, usually 15% of the issue size, to the
categories. public if the demand exceeds expectations and the stock
trades above its offer price. This option is also known as
• PHH are to be identified by State Governments/Union
an over-allotment provision.
Territory Administrations as per criteria evolved by them.
• Also known as Over-allotment options.
• AAY families are to be identified by States/UTs as per the
WHAT WILL BE THE CRITERIA FOR THE SELECTION OF THE
criteria prescribed by the Central Government:
PROJECTS ?
ο Households headed by widows or terminally ill persons
Funding shall be provided to the projects that meet the
or disabled persons or persons aged 60 years or more
following criteria:
with no assured means of subsistence or societal
support. • Stalled for lack of adequate funds
ο Widows or terminally ill persons or disabled persons or • Affordable and Middle Income Category
persons aged 60 years or more or single women or • Net worth positive projects (including NPAs and projects
single men with no family or societal support or assured undergoing NCLT proceedings)
means of subsistence. • RERA registered
ο All primitive tribal households. • Priority for projects very close to completion.
ο Landless agriculture labourers, marginal farmers, rural • Recently, the Ministry of Human Resource Development
artisans/craftsmen such as potters, tanners, weavers, (MHRD) has released.
blacksmiths, carpenters, slum dwellers, and persons
earning their livelihood on daily basis in the informal
►YUKTI 2.0
sector like porters, coolies, rickshaw pullers, hand cart
• It is an initiative of Ministry of Human Resource
pullers, fruit and flower sellers, snake charmers, rag
Development to help systematically assimilate
pickers, cobblers, destitutes and other similar
technologies having commercial potential and information
categories in both rural and urban areas.
related to incubated start-ups in higher education.
ο All eligible Below Poverty Line families of HIV positive
• The portal will be implemented by AICTE and MHRD
persons.
Innovation Cell.
►SPECIAL WINDOW FOR AFFORDABLE

►MANODARPAN INITIATIVE
AND MID INCOME HOUSING (SWAMIH)
It is an initiative of Ministry of Human Resource Development
The performance of Special Window for Affordable and Mid to provide psychosocial support to students for their Mental
Income Housing (SWAMIH) was recently reviewed by the Union health and well-being.
Finance Minister.
• Advisory Guidelines for students, teachers and faculty of
EXPLAINED School systems and Universities along with families.
• The fund was formed in 2019 to complete stalled • Web page on the MHRD website, which will carry
construction, mid-income housing projects, RERA- advisory, practical tips, posters, videos, dos and donts for
registered affordable projects. psychosocial support, FAQs and online query system.
• The fund has a target corpus of Rs 12,500 crores. The • National level database and directory of counsellors at
green shoe option of the fund is Rs 12,500 crores. School and University level whose services can be offered
• The fund has so far approved 81 projects with an voluntarily for Tele-Counselling Service on the National
investment of Rs 8767 crore. Helpline.
• The Secretary of Ministry of Finance is the sponsor of • National Toll-free Helpline by the MHRD for a country
the fund on behalf of Government of India. wide outreach to students from school, universities and
• The projects sanctioned under the funds are spread in colleges.Handbook on Psychosocial Support: Enriching
Delhi, Pune, Bengaluru and in Tier 2 locations such as Life skills & Wellbeing of Students to be published
Panipat, Karnal, Lucknow, Dehradun, Jaipur, Chandigarh, online. The booklet will include FAQs, Facts & Myths and
Vizag, Nashik and Jaipur. will also cover ways and means to manage emotional and
behavioural concerns (from young children to college
WHAT IS GREENSHOE OPTION?
youth) during the COVID-19 pandemic and beyond.
19
• Interactive Online Chat Platform for contact, Future We Want".
counselling and guidance by psychologists and other The Forum’s first meeting was held on 24 September 2013. It
mental health professionals which will be available for replaced the Commission on Sustainable Development, which
students, teachers, and families during COVID-19 had met annually since 1993.
and beyond. The High-level Political Forum on Sustainable Development
• Webinars, audio-visual resources including videos, meets:
posters, flyers, comics, and short films to be uploaded • Every four years at the level of Heads of State and
as additional resource materials on the webpage. Government under the auspices of the General Assembly
for two days;
►PRAGYATA GUIDELINES ON DIGITAL • Every year under the auspices of the Economic and Social
EDUCATION RELEASED Council for a period of eight days, including a three-day
ministerial segment.
Guidelines on digital education titled 'PRAGYATA' released by the
Ministry of Human Resource Development (MHRD). The HLPF is the main United Nations platform on sustainable
development and it has a central role in the follow-up and
EXPLAINED
review of the 2030 Agenda for Sustainable Development the
• These Guideline are advisory in nature and state
Sustainable Development Goals (SDGs) at the global level.
governments can formulate their own rules, based on
In the HLPF, UN member countries present their Voluntary
local needs.
National Review (VNR) on the implementation of SDGs. The
• They have been prepared by the National Council of
VNRs thus serve as a basis for the international review of
Educational Research and Training (NCERT).
progress for the SDGs.India is presenting its second Voluntary
• It includes eight steps of online/digital learning i.e. Plan- National Review at the HLPF in July, 2020. The title of the
Review- Arrange- Guide- Yak (talk)- Assign- Track- presentation is “Decade of Action: Taking SDGs from Global
Appreciate. to Local.”
• The HRD Ministry has suggested that the online classes for
pre-primary students should not be for more than 30 ►INDIA REGISTERS A STEEP DECLINE IN
minutes a day.
MATERNAL MORTALITY RATIO
• For Classes 1st to 8th, it has suggested that not more than
The Office of the Registrar General’s Sample Registration System
two online sessions of upto 45 minutes each should be
(SRS) recently released an Special bulletin on Maternal Mortality
conducted in a day.
in India 2016-18.
• For the senior students, from class 9th to 12th, the
EXPLAINED
Ministry has suggested to limit the online classes to a
maximum of four sessions of upto 45 minutes each. • Maternal Mortality Ratio (MMR) is defined as the number
of maternal deaths during a given time period per
1,00,000 live births during the same time period.
INDEX AND REPORTS • The the United Nation’s Sustainable Development Goals
(SDGs) set to aims at reducing the global maternal
►NITI AAYOOG SUBMITS INDIA’S 2ND mortality ratio to less than 70 per 1,00,000 live births.
VOLUNTARY NATIONAL REPORT • According to World Health Organization, maternal death is

the death of a woman while pregnant or within 42 days of
NITI Aayog presented India’s second Voluntary National
termination of pregnancy, from any cause related to or
Review (VNR) at the United Nations High-level Political Forum
aggravated by the pregnancy or its management.
(HLPF) on Sustainable Development, 2020. The HLPF is the
foremost international platform for follow-up and review of • As per the findings MMR has declined to 113 in 2016-18
progress on the 17 Sustainable Development Goals (SDGs). from 122 in 2015-17 and 130 in 2014-2016.
The report is titled ‘Decade of Action: Taking SDGs from Global • Highest MMR Assam (215) lowest is that of Kerala (43).
to Local’
HIGH LEVEL POLITICAL FORUM ►NIRF RANKINGS
The establishment of the United Nations High-level Political National Institutional Ranking Framework (NIRF) under ministry
Forum on Sustainable Development (HLPF) was mandated in of HRD has released “India Rankings 2020” of Institutions of
2012 by the outcome document of the United Nations Higher Education in 10 categories on the basis of their
Conference on Sustainable Development (Rio+20), "The performance on five broad categories of parameters. This year, a
20
new domain i.e. “Dental” has been introduced for the first time EXPLAINED
thereby increasing the total tally to 10 categories or subject • It has been published every year since 2002 by Reporters
domains. Sans Frontieres (RSF) or Reporters Without Borders.
ABOUT NIRF • Reporters Sans Frontieres is based in Paris, It is an
• The National Institutional Ranking Framework (NIRF) was independent NGO with consultative status with the United
approved by the MHRD and was launched in September Nations, UNESCO.
2015. • The parameters include media independence, pluralism,
• This framework outlines a methodology to rank legislative framework, media environment and self-
institutions across the country, based on total sum of censorship, transparency, and the quality of the
marks assigned for each of these five broad groups of infrastructure that supports the production of news and
parameters- information.
1. Teaching, Learning and Resources (TLR) • India has dropped to two places on the World Press
2. Research and Professional Practice (RP) Freedom Index, 2020 to be ranked 142nd.
3. Graduation Outcomes (GO) • 1st rank- Norway
4. Outreach and Inclusivity (OI)

5. Perception (PR)
►INDIA RANKS 53RD IN BUDGET
WHAT ARE THE 10 CATEGORIES OR SUBJECT DOMAIN IN TRANSPARENCY AND ACCOUNTABILITY
WHICH RANKING IS PROVIDED? India has been placed at 53rd position among 117 nations in
• Overall Ranking terms of budget transparency and accountability.
• University wise Ranking EXPLAINED
• Engineering • The survey conducted by the International Budget

Partnership (IBP). It rates the level of transparency in
• Management
budget across nations on a scale of 0-100.
• Colleges
• International Budget Partnership (IBP) has provided a
• Pharmacy transparency score of 49 out of 100 to India’s Union
• Medical budget process.
• Architecture • The provided score to India is higher than the global
• Law average score of 45.
• Dental • New Zealand has gained the highest score of 87.
WHAT IS THE PURPOSE OF NIRF? • The survey evaluated every country based on their
issuance of information to the public in a timely manner.
1. Rankings provided by NIRF acts as a guide to students for
Also, they assessed how far the countries allowed public
selection of universities based on a set of criteria and
participation in order to prepare the ranking.
helps universities to improve their performance on various
ranking parameters.
2. It also helps the universities to identify gaps in research ►GLOBAL EDUCATION MONITORING
and different areas of improvement. (GEM) REPORT
3. The ranking of Institutions at national level instil a UNESCO released the Global Education Monitoring Report, 2020.
competitive spirit amongst institutions to perform better EXPLAINED
and secure higher rank in international ranking.
• The Report assesses progress towards SDG 4 on
4. Participation in such ranking framework by universities education and its ten targets, as well as other related
shows the confidence of the institution as ranking is education targets in the SDG agenda.
necessary for transparency and healthy competition.
• Covid-19 had worsened the inequalities in education
systems across the world.
►WORLD PRESS FREEDOM INDEX
• Nearly 40% of low and lower middle income Nations have
In World Press Freedom Index 2020, India ranked to 142 out of not supported learners at risk of exclusion during the
180 countries. crisis of Covid-19, such as the poor, linguistic minorities
and learners with disabilities.
21
• India has used a mix of all three systems (radio, TV and country disparities in stunting, where the levels varied
online platforms) for educational continuity. four-fold across communities.
►GLOBAL NUTRITION REPORT ►FREEDOM IN THE WORLD 2020 REPORT

The Global Nutrition Report 2020 has stated that India is • Freedom in the World 2020 report ranked India at the 83rd
among 88 countries that are likely to miss global nutrition position out of 195 nations, along with Senegal and Timor-
targets by 2025. Leste.
EXPLAINED • The report is released by Freedom House, a U.S.-based
• It is a multi-stakeholder initiative, consisting of a think-tank.
Stakeholder Group, Independent Expert Group and Report • Freedom in the World Report is based on an analysis on
Secretariat. the following parameters:
• The Global Nutrition Report was conceived following the ο Electoral process
first Nutrition for Growth Initiative Summit (N4G) in 2013. ο Political pluralism and participation;
• The first report was published in 2014. ο Functioning of the government;
• The World Health Assembly in 2012 has identified and ο Freedom of expression and belief;
fixed 6 nutrition targets for maternal health, infant and
ο Associational and organizational rights;
young child.
ο Rule of Law
• The six targets are
ο Personal autonomy and Individual Rights.
1. Stunting
• The report derives its methodology from the Universal
2. Wasting
Declaration of Human Rights, adopted by the United
3. Anemia Nations General Assembly (UNGA) in 1948.
4. Breast feeding • The Freedom in the World 2020 report assessed 195
5. Low birth weight countries and rates them as 1. Free 2. Partly Free and 3.
6. & Childhood overweight. Not Free. The share of countries rated free has declined by
3% in the last decade.
• The deadline to achieve these targets was set to 2025.
• India is near the bottom of the pile among the countries
Report mentions that India will miss the targets for all
categorised as “Free”, with only Tunisia receiving a lower
four Nutritional indicators:
score.
• Stunting among under-5 children
• Anaemia among women of reproductive age
►“LOST AT HOME”: A REPORT RELEASED
• Childhood overweight
BY UNICEF
• Exclusive breastfeeding
‘Lost At Home’ report of UNICEF says largest number of children
ο The report has identified India as the country having the displaced in 2019 year.
highest rates of inequality in terms of domestic
KEY FINDINGS
malnutrition.
• The report highlighted that 19 million children were living
ο From 2000 to 2016, rate
in displacement within their own countries due to conflict
of underweight have decreased from 66.0% to 58.1% for
and violence in 2019.
boys and 54.2% to 50.1% in girls. But its still high
compared to the average of 35.6% for boys and 31.8% • In 2019, an estimated 46 million people were internally
for girls in Asia. displaced by conflict and violence.
ο Rate of overweight and obesity continues to rise,

affecting almost a fifth of the adults, at 21.6% of women
and 17.8% of men.
ο 37.9% of children under 5 years are stunted and 20.8%
are wasted, compared to the Asia average of 22.7% and
9.4% respectively.
ο India is identified as among the three worst countries,
along with Nigeria and Indonesia, for steep within-
22
SECTION 2
I NDIAN E CONOMY
RBI AND MONETARY

banking financial companies (NBFCs) and micro finance
institutions (MFIs)
POLICY New Announcement: The RBI conducted targeted long-

term repo operations (TLTRO 2.0) . The funds availed by
banks under TLTRO 2.0 should be invested in investment
►RBI’S ECONOMIC PACKAGE TO DEAL
grade bonds, commercial paper, and non-convertible
WITH COVID-19 debentures of NBFCs. At least 50 per cent of the total amount
COVID-19 has put economic activity and financial markets availed should go to small and mid- sized NBFCs and MFIs.
across the world under severe stress. According to IMF, the LIQUIDITY COVERAGE RATIO (LCR) REDUCED TO 80%
global economy is expected to plunge into the worst
The LCR is designed to ensure that banks hold a sufficient
recession since the Great Depression, far worse than the
reserve of high-quality liquid assets (HQLA) to allow them to
Global Financial Crisis. The IMF has named it as the ‘Great
survive a period of significant liquidity stress lasting 30
Lockdown’, estimating the cumulative loss to global GDP over
calendar days. HQLA are cash or assets that can be converted
2020 and 2021 at around 9 trillion US dollars.
into cash quickly through sales (or by being pledged as
ECONOMIC PACKAGE ANNOUNCED BY RBI collateral) with no significant loss of value. The LCR requires
ISSUANCE OF TARGETED LTROs banks to hold a stock of HQLA at least as large as expected
RBI injected Rs 1 lakh crore into the economy through the total net cash outflows over the stress period of 30 days.
Targeted Long-Term Repo Operations (TLTROs) Stock of HQLA/Total net cash outflows over the next 30
• It will be of 3 years’ tenure. calendar days ≥ 100%
• The interest rate on the term repos would be floating • Total net cash outflows are defined as the total expected
interest rate, linked to policy Repo Rate. cash outflows minus the total expected cash inflows
• The liquidity availed by banks has to be deployed in arising in the stress scenario.
investment grade corporate bonds, commercial paper and • Announcement: In order to ease the liquidity position at
other financial instruments. Hence, it is referred to as the level of individual institutions, the LCR requirement for
Targeted LTROs. Scheduled Commercial Banks is being brought down from
Problem: The RBI has observed that the deployment of 100 per cent to 80 per cent with immediate effect. The
TLTRO funds so far has largely been to bonds issued by requirement shall be gradually restored back in two
public sector entities and large corporates. However, the phases – 90 per cent by October 1, 2020 and 100 per cent
disruptions caused by COVID-19 have more severely by April 1, 2021.
impacted small and mid-sized corporates, including non-
23
INDIAN ECONOMY
RE-FINANCING FACILITIES FOR ALL INDIA FINANCIAL loan as NPA on 31st July (29 days in Feb + 30 days in June + 31
INSTITUTIONS (AIFIS) days in July)
The RBI has decided to provide loans of around Rs 50,000 REDUCTION IN CASH RESERVE RATIO (CRR)
crore to NABARD, SIDBI and NHB to enable them to meet The moratorium on the term loans by the banks could have
sectoral credit needs. an adverse impact on the cash flows of the banks. Hence, in
REDUCTION ON THE REVERSE REPO RATE order to improve their liquidity situation, the RBI has decide
In its first announcement of economic package the RBI had to reduce the CRR from existing 4% to 3%. The reduction in
reduced the reserve repo by 90 basis points from 4.90% to CRR would release Rs 1.37 lakh crores for the banks which
4%. RBI has decided to reduce the reverse repo rate 25 basis then can be injected into the economy.
points from 4% to 3.75%. RELAXATION IN BORROWINGS UNDER MARGINAL
STANDING FACILITY (MSF)
What is Reverse Repo? The Reverse Repo is the rate at
which the RBI borrows money from the market. So, when the The MSF is a tool used by the Banks to borrow money from
Banks park their surplus funds with the RBI, the rate of the RBI on an overnight basis. The MSF enables the banks to
Interest which the RBI pays to the Banks is called as Reverse borrow money using G-Secs which are part of SLR. Presently,
Repo. the Banks can borrow only up to 2% of their NDTL. The RBI
has decided to increase the borrowing limit to 3% of Net
How does reducing repo rate help?
Demand and Time Liabilities (NDTL).
Repo rate is reduced to ensure banks do not park their
DEFERMENT OF LAST TRANCHE OF CAPITAL
surplus fund with the RBI. Rather, they should use their
CONSERVATION BUFFER (CCB)
surplus funds to give loans within the economy next line
announcement in order to encourage banks to deploy the As part of BASEL-III requirements, the RBI has mandated the
surplus funds in the form of loans rather than parking them Banks to maintain CAR of 9% and an additional Capital
with RBI Conservation Buffer (CCB) of 2.5%. The banks were required
to fulfil the CCB requirements by end of March 31,2020. The
• RBI has now decided to increase the WMA limit of states by
RBI were given additional time till September 30, 2020 to
60% to provide greater comfort to the states. The increase
comply with the Capital Conservation buffer requirements.
limit will be available till September 30 2020
• Exemption from distribution of dividend announcement
the banks must conserve capital to retain to support the
►INCREASE IN CPI RATE OF INFLATION
economy and absorb losses. Hence, the schedule The lockdown imposed due to COVID-19 has limited the
commercial bank in cooperative bank shall not make any financial transactions within the Indian Economy.
further dividend pay-outs from profits pertaining to the Consequently, it has become quite difficult for the National
financial year 2019-2020. Statistical Office (NSO) to come out with the full-fledged
STAND STILL FOR ASSET CLASSIFICATION estimates of Inflation numbers for the month of May 2020.
The NSO has come out with truncated report on Inflation
In the first economic package the RBI had permitted the
which comprises of Inflation numbers of only some of the
banks to allow a moratorium of three months on the
commodities. Accordingly, the NSO report has highlighted
payment of instalments of all the terms loans which on which
st that the Consumer Food Price Index (CFPI) for the month of
are outstanding as of March 1 2020. Usually, in case of delay
May 2020 has increased to 9.28% at all India level.
of more than 30 days the loans are categorized as special
mention account (SMA). If the delays more than 90 days the CONSUMER FOOD PRICE INDEX (CFPI)
loan is categorized as NPA. However, in this case since the The base year and methodology of calculation of CFPI is
RBI has had enabled moratorium the term loans would not similar to CPI. However, in order to calculate CFPI, we take
be labelled as SMA or NPA during the moratorium period of into account only the category of Food and Beverages. Within
three months problem. Then the banks are required to follow this category, there are 12 sub-groups such as cereals, Meat,
90-day norm for classifying such loans as in NPAs. fish, Fruits etc. Out of these 12 sub-groups, CFPI is based on
Now the bank would be required to exclude the period of ten sub-groups, excluding ‘Non-alcoholic beverages’ and
moratorium (31 days in March +30 days in April + 31 days in ‘Prepared meals, snacks, sweets etc.’.
May) for the classification of NPA. So, if a company continues

to default, then the bank would be required to categorize this
24
INDIAN ECONOMY
►CIRCUIT BREAKER This was challenged by the petitioners arguing that the
Parliament lacks the legislative competence to regulate
The benchmark Index, SENSEX has decreased from all-time
financial assets related to the non-banking activity of a co-
high of 42,000 in January 2020 to 52-week low of 25,000
operative society. They argued that the Banking business
points in March 2020.
carried out on by the cooperative societies are merely an
• A circuit breaker is a measure to stem the steep fall or a
incidental/ ancillary activity and hence doctrine of pith and
sharp rise in the price of a security / stock or the index as a
substance should be applied to hold that the regulation of
whole.
such activities is outside the ambit of subject matter on which
• Any steep increase or fall in the share market can lead to Parliament can legislate. The SC has now ruled that the
crash of the entire capital market. Hence, there is a need SARFAESI act shall be applicable to the multi-state
to halt trading in the share market in event of large-scale Cooperative Banks as well.
fluctuations.
• The system applies at three stages of the index movement,
either way, at 10 per cent, 15 per cent and 20 per cent. GOVERNMENT POLICIES
These breakers, when triggered, bring about a coordinated
trading halt. ►ECONOMIC STIMULUS PACKAGE FOR
SELF-RELIANT INDIA
►COOPERATIVE BANKS BROUGHT Recently, Prime Minister gave a clarion call for Atmanirbhar
UNDER SARFAESI ACT Bharat or Self-Reliant India movement in response to
economic hardship created by COVID-19 pandemic. The five
The Supreme Court has recently held that the provisions of
pillars of the Self-Reliant India movement are - Economy,
the Securitization and Reconstruction of Financial Assets and
Infrastructure, technologically driven System, Vibrant
Enforcement of Security Interest Act, 2002 (SARFAESI Act) will
Demography and Demand.
be applicable to multi-state cooperative banks, and not just
commercial banks. ECONOMIC PACKAGE FOR THE MSMEs
ABOUT SARFAESI ACT, 2002 The MSME sector employs around 111 million people and is
the second largest employer after agriculture. It contributes
The SARFAESI Act essentially empowers banks to directly
30% of India's GDP and 45% of our manufacturing export.
auction residential or commercial properties that have been
These MSMEs which have been badly hit by COVID-19 need
pledged with them to recover loans from borrowers. As per
additional funding to meet their operational liabilities, buy
the SARFAESI Act, if a borrower defaults on a loan, the Banks
raw materials and kickstart their business operation.
can give a notice period of 60 days to the borrower to repay
Accordingly, the Government has come out six-point
the loans. If the borrower fails to repay within 60 days, the
economic package to infuse liquidity into the MSMEs.
Banks can take the following actions:
COLLATERAL FREE AUTOMATIC LOANS FOR THE
1. Take possession of the pledged assets and then lease or
STANDARD MSMEs
sell it off to recover the loan amount.
Banks and NBFCs to extend collateral free loans worth Rs 3
2. Take over the management of the business of the
lakh crores to the standard MSMEs.
borrower.
• Standard MSMEs are those MSMEs who have not
3. Appoint a person to manage the assets
defaulted on their repayment of loans and their accounts
PRESENT JUDGEMENT OF THE SUPREME COURT
are categorized as Standard Assets by Banks).
Initially, the Multi-state Co-operative banks were not covered
EQUITY INFUSION THROUGH MSME FUND OF FUNDS
under the definition of banks for which the SARFAESI Act was
U.K. Sinha Committee Recommendations: Based upon the
applicable. In 2003, a notification was issued (without
previous experiences, the U.K. Sinha Committee on MSMEs
amending the law) to bring co-operative banks within ambit
had recommended for the setting up of Fund-of-funds worth
of SARFAESI. Later, in 2013, the government amended the Act
Rs 10,000 crores for the MSME sector.
to include multi-state co-operative banks formally under the
definition of banks.
25
IN
NDIAN ECONOMY
NEW DEFINITIO
ON OF MSME
In the turnoverr of the MSM MEs, export e arnings will not be would
w pay 244% of the contribution off both emplo oyee and
addded. Thus, inccentive will be
e provided to exporting MSSMEs. employer
e for the next 3 months.
m This would be ap pplicable
This, definition has
h been don ne according tto the provisions of only
o those wo orkers whose basic salary iis below Rs 15
5,000 per
MSSME Develop pment Act, 2006. The new definittion is month
m and arre employed in industries having less tthan 100
com
mposite criterria. If an enteerprise crosse es the ceiling
g limits workers.
w This scheme was applicable fo or the next 3 months
spe
ecified for its present category in eitherr of the two ccriteria i.e. for the sallary months of
o March, Apri
ril and May 20 020.
of investment or turnover, it will ceasse to exist in that New
N Announ ncement: Th he scheme inntroduced ass part of
category and be e placed in the next high her category bbut no PMGKP
P will be
b extended by another 3 months fo or salary
entterprise shall be placed in the
t lower cat egory unless it goes months
m of Jun
ne, July and Au
ugust 2020.
below the ceilin ng limits speccified for its p
present categgory in EPF
E CONTRIBUTION TO BEE REDUCED FFOR EMPLOYE
ERS AND
botth the criteria of investmennt as well as tu
urnover. EMPLOYEES
E FOR
F 3 MONTH
HS
PREFERENCE TO
O MSMEs FOR
R GOVERNME
ENT New
N Announ ncement: PF contribution of both emp ployer
TEN
NEDERS and
a employee e reduced to 10% each frrom existing 12%
Preesent Scenarrio: Whenever the Governm ment has comme out each
e for all establishmen nts covered b
by EPFO for next 3
witth the tenderss for the proccurement of ggoods and se
ervices, months.
m Howeever, the CPSEs and State PPSUs will how
wever
succh tenders have had higherh beneffit for the fforeign continue
c to contribute
c 12
2% as emplo oyer contribuution.
commpanies. Thee MSMEs with hin India are unable to co
ompete This
T scheme will
w be appliccable for worrkers who are e not
witth the deep-pocketed and technological
t ly advanced fforeign eligible
e for 24% EPF support under PM Garib Ka alyan
commpanies to geet the governmment tenderss. Package
P and its extension n i.e. employyed in indusstries
General Financ
cial Rules (GF
FR) of the Goovernment w
will be having
h more than
t 100 workkers.
am
mended to disallow globalg tend
der contraccts in Benefits:
B It would provide relief to the employers inn the
pro
ocurement of Goods payment
p of Provident fundd. At the sam
me time, the lower
EM
MPLOYEES PRO
OVIDENT FUN
ND SUPPORT
T FOR BUSINE
ESS contribution
c to PF would le
ead to higherr take home ssalary
AN
ND ORGANISEED WORKERS for
f the emp ployees leadding to dem mand within the
economy.
e
Preesent Status: The Govern nment is pressently implem
menting
soccial security schemes succh as Employyee provident fund FINANCIAL
F SU
UPPORT TO THE
T NBFCs
(EP
PF), Employe ee pension scheme(EPS)), Employee state • Special Liq
quidity Schem
me for NBFC//HFC/MFIs
Insurance etc. for
f the benefit of workerrs in the org ganised ο The Gov
vernment hass come out w
with Rs 30,0
000 crore
secctor. and Serv
vices of value of
o less than R
Rs 200 crores. special liquidity sche
eme in ordeer to incentiivise the
PREVIOUS ANNOUNCEMENT T UNDER PRA
ADHAN MANTRI Banks too borrow money from R RBI through targeted
GA
ARIB KALYAN PACKAGE (PMGKP) LTROs and use that borrowed
b mooney to injectt liquidity
As can be seen in
i above figurre, both emplloyee and em
mployer into NBF
FCs, HFCs and MFIs.
e required to make contrib
are bution of 12%% each, totallin
ng 24% ο Under th
his scheme, the money bo
orrowed by th
he Banks
to EPF and EPS S. The Government has announced that it from th
he RBI would have to be invested
d in the
RAU’S IAS FOCUS SPEC

CIAL EDITION
NS | PRELIMS COMPASS (C3 CURATION
N) for CSE 20020
26
INDIAN ECONOMY
investment grade bonds, commercial papers issued by and Development) Act, 2016 provides for the extension of
the NBFCs. In case of default by the NBFCs, the real estate project by the Real estate development authority
Government would repay the entire amount i.e. 100% by invoking Force Majeure clause. Under this clause, the
government guarantee on repayment of such financial extension of real estate project could be given on account of
instruments. war, flood, drought, fire, cyclone, earthquake or any other
• Partial credit guarantee Scheme 2.0 – Expansion of calamity caused by nature affecting the regular development
existing Scheme to cover liabilities of NBFCs and HFCs of the real estate project.
Existing Partial Credit Guarantee Scheme: Under this New Announcements: Due to the impact of COVID-19, most
scheme, the Public Sector Banks would purchase highly of the real estate projects have got struck and accordingly the
rated assets of the NBFCs and HFCs in order to inject timeline for the completion of real estate projects need to be
liquidity and address the temporary liquidity crunch. extended. Accordingly, the Ministry of Housing and Urban
The existing Partial credit guarantee scheme has now Affairs will advise States/UTs and their Regulatory Authorities
been extended to cover even the liabilities such as the following:
Commercial papers, bonds etc. issued by the NBFCs, • Treat COVID-19 as an event of ‘Force Majeure’ under RERA.
HFCs etc. Under the new scheme, the Banks would be • Extend the registration and completion date Suo-moto by
allowed to make investment in the commercial papers, 6 months
Bonds issued by the NBFCs. In case of months for
• Regulatory Authorities may extend this for another period
completion of contractual obligations. The default, first
of up to 3 months, if needed.
20% of the loss would be guaranteed by the Government.
REDUCTION IN THE RATE OF TAX DEDUCTION AT
LIQUIDITY INJECTION FOR DISCOMS
SOURCE (TDS) AND TAX COLLECTION AT SOURCE
Present problem with DISCOMs: (TCS)
• Decrease in demand for Electricity due to COVID-19 Understanding Tax Deduction at source (TDS) and Tax
• Cash flow problem for the DISCOMs collection at Source (TCS): TDS and TCS was introduced to
• Unable to clear its dues to the power generating collect the tax at the source from which individual’s income is
companies generated. Both these tools are used to minimise tax evasion
by taxing the income at the time when it is generated rather
• Inability of the power companies to repay their loans
than at a later date.
• Possible increase in the NPAs of the Banks
Tax Deducted at Source is the tax that is deducted by
• Poor Credit Creation. Payer or buyer. For example, let’s say you earn interest on
New Announcement: The Power Finance Corporation the fixed deposit with the Bank. Here, as part of TDS, the
and Rural Electrification Corporation will infuse liquidity bank would deduct the tax income and pay only the
in the DISCOMS to the extent of Rs 90000 crores in two remaining amount to you. The tax deducted by the Bank
equal instalments. This amount will be used by DISCOMS would then be paid to the Government on your behalf. Later,
to pay their dues to Transmission and Generation while filing Income tax returns, TDS would be considered as
companies. tax paid and this amount would be adjusted against the total
Further, Central Public sector Generation companies such tax liability. Similar, on winning lottery prize, the tax amount
as NTPC will give a rebate to DISCOMS on the condition of 5% would be deducted as TDS.
that the discount is passed on to the final consumers as a Some of the payments on which the TDS is applicable include
relief. Interest on Securities, Dividend income, Payment of
RELIEF TO CONTRACTORS contractors, Lottery prize, Payment for availing professional
services etc.
All central agencies like Railways, Ministry of Road Transport
and Highways and CPWD will give extension of up to 6 Tax Collected at source is the tax that is collected by the
months for completion of contractual obligations. The Seller from the buyer and then paid to the government.
obligations could be in the nature of extending the time for TAX DEDUCTED AT TAX COLLECTED AT SOURCE
the completion of a project or procurement of goods and SOURCE (TDS) (TCS)
services.
Tax that is deducted at
RELIEF TO REAL ESTATE PROJECTS Tax which is collected at the
the time of making
Present Status: Presently, the Real Estate (Regulation and time of selling certain Goods.
payment
Development) Act, 2016 provides for time bound completion
Deducted by the entity Collected by the entity that
of real estate projects. Section 6 of the Real Estate (Regulation
27
INDIAN ECONOMY
that makes the payment sell the Goods. scheme will cover urban as well as rural vendors doing
business in the adjoining urban areas.
Deducted on Payments
like salary, Interest, EXTENSION OF CREDIT LINKED CAPITAL SUBSIDY
Collected on sale of certain SCHEME TO BOOST HOUSING SECTOR
professional fee, Lottery
specified goods such as tendu
prize, payment to The Credit Linked Subsidy Scheme for Middle Income
leaves, scrap, Mineral ores,
contractors, Rent Group has been extended by one more year from 31st
Motor vehicles etc.
purchase of immovable March 2020 to 31stMarch 2021.
property etc. • About Credit linked Capital Subsidy Scheme: It is a
New Announcement: The TDS rates for all non-salaried component of Pradhan Mantri Awas Yojana (PMAY). Under
payment to residents, and tax collected at source rate will be this component, the Government pays certain part of
reduced by 25 percent of the specified rates for the interest on the home loans taken by the home buyers
remaining period of FY 20-21. This will provide liquidity to the from Banks and NBFCs.
tune of Rs 50,000 Crore. Beneficiaries of Economically Weaker Section (EWS)/Low
AFFORDABLE RENTAL HOUSING COMPLEXES Income Group (LIG), Middle Income Group (MIG)-I and
Middle Income Group (MIG)-II seeking housing loans from
Government will launch a scheme under Pradhan Mantri
Banks, Housing Finance Companies and other such
Awas Yojana (PMAY) for migrant labour/urban poor to
institutions for acquiring/constructing houses are eligible
provide ease of living at affordable rent. This would be done
for an interest subsidy of 6.5%, 4% and 3% on loan amount
through:
up to Rs. 6 lakhs, Rs. 9 lakhs and Rs. 12 lakhs respectively.
1. Converting government funded housing in the cities into
The Interest subsidy is credited upfront to the loan
Affordable Rental Housing Complexes (ARHC) under PPP
account of beneficiaries resulting in reduced effective
mode;
housing loan and Equated Monthly Instalment (EMI).
2. Incentivizing manufacturing units, industries, institutions,
• Creating employment using CAMPA funds:
associations to develop Affordable Rental Housing
Approximately Rs 6,000 crore of funds under
Complexes (ARHC) on their private land and operate; and
Compensatory Afforestation Management & Planning
3. Incentivizing State Government Agencies / Central Authority (CAMPA) will be used for Afforestation and
Government Organizations on the similar lines to develop Plantation works, including in urban areas, Forest
Affordable Rental Housing Complexes (ARHC) and operate. management, soil & moisture conservation works, forest
INTEREST SUBVENTION FOR MUDRA-SHISHU LOANS and wildlife related infrastructure development etc. This
About Mudra Scheme: The Pradhan Mantri MUDRA Yojana will create job opportunities in urban, semi-urban and
(PMMY) providing for loans up to Rs. 10 lakhs to the non- rural areas and also for Tribals.
corporate, non-farm small/micro enterprises. Under PMMY, • Emergency Working Capital for farmers through
all banks are required to lend to non-farm sector income NABARD: NABARD will extend additional re-finance
generating activities below Rs.10 lakhs. These loans are support of Rs 30,000 crore for meeting crop loan
classified as MUDRA loans under PMMY as given below: requirement of Rural Cooperative Banks and RRBs.
• Shishu (loans up to Rs. 50,000); • Concessional credit through Kisan Credit Cards (KCC):
• Kishore (loans from Rs. 50000 to Rs. 5 lakhs); Special drive to be undertaken to provide concessional
credit to PM-KISAN beneficiaries through Kisan Credit
• Tarun (loans from Rs.5 lakhs to Rs. 10 lakhs)
Cards. Fishermen and Animal Husbandry farmers will also
New Announcement: The total loan disbursed under the
be included in this drive.
MUDRA-Shishu is around Rs 1.62 Lakh crore. Government of
India will provide Interest subvention of 2% for prompt
payees for a period of 12 months (applicable only to Mudra- ►REFORMS IN THE AGRICULTURE
Shishu loanees) SECTOR INCLUDING AGRICULTURAL
Note: The Interest subvention means that the Government MARKETING
pays a part of Interest taken on loans
AGRI INFRASTRUCTURE FUND FOR FARM-GATE
Special Credit Facility for Street Vendors: Government
INFRASTRUCTURE FOR FARMERS
will launch a special scheme within a month to facilitate
A High-level Expert Committee constituted by Ministry of
easy access to credit to street vendors. Under this
Agriculture has estimated that 25 to 30 % of fruit and
scheme, bank credit facility for initial working capital up
vegetables and 8 to 10 % of food grains are wasted annually
to Rs. 10,000 for each enterprise will be extended. This
28
INDIAN ECONOMY
due to lack of post-harvest technology and non-existence of 15,000 crores worth Animal Husbandry Infrastructure
integrated transport, storage and marketing facilities, etc. The Development Fund.
total estimated post-harvest losses amounts to around Rs Under this fund, financial incentives would also be given
92,000 crores. for private sector investment in certain niche products
New announcement: The Government has unveiled Rs 1 such as Milk powder, Ghee, butter, Cheese etc.
lakh crore worth Agri Infrastructure Fund to improve the PROMOTION OF HERBAL CULTIVATION
farm-gate infrastructure such as collection centres, storage,
In order to promote medicinal plants sector, the
cold chain infrastructure etc. This fund would provide
Government of India has set up National Medicinal Plants
necessary funding support to Primary Agricultural
Board (NMPB) in 2000. Currently, the board is located in
Cooperative Societies, Farmers Producer Organizations,
Ministry of AYUSH (Ayurveda, Yoga & Naturopathy, Unani,
Agriculture entrepreneurs, Start-ups, etc. to invest in post-
Siddha & Homoeopathy).
harvest management infrastructure.
NEW ANNOUNCEMENT
FORMALISATION OF MICRO FOOD ENTERPRISES
(MFE) • The National Medicinal Plants Board (NMPB) has so far
supported 2.25 lakh hectare area under cultivation of
Background: The agriculture export policy 2018 calls for
medicinal plants.
doubling India's exports of agricultural commodities from
$ 30 bn to $ 60 bn by the end of 2022. Further, the • Additional 1 million hectares will be covered under Herbal
agricultural exports from India are basically dominated by cultivation in next two years with outlay of Rs. 4,000
Rice, Marine products and Meat, which comprise of crores. This will lead to Rs. 5,000 crore income generation
around 50% of our exports. Accordingly, the policy calls for farmers.
for diversification of India's export basket. • NMPB will bring 800-hectare area by developing a corridor
New Announcement: The Government has launched Rs of medicinal plants along the banks of Ganga.
10,000 crores Scheme for Formalisation of Micro-food • Network of regional Mandis for Medicinal Plants would also
enterprises. Under this scheme, the Existing micro food be set up.
enterprises, Farmer Producer Organisations, Self Help BEEKEEPING INITIATIVES – RS 500 CRORE
Groups and Cooperatives would be supported for
Government has now announced a new scheme for boosting
undertaking technical upgradation.
beekeeping activities within India. The scheme would focus
Doing so, would enable them to meet international food on:-
standards, build brand value and market their products.
• Infrastructure development related to Integrated
The focus of the Government would be on Cluster based Beekeeping Development Centres, Collection, Marketing
approach (e.g. Mango in UP, Kesar in J&K, Bamboo shoots in and Storage Centres,
North-East, Chilli in Andhra Pradesh, Tapioca in Tamil Nadu,
• Post-Harvest & value Addition facilities etc;
Ragi in Karnataka, Turmeric in Telangana etc.
• Implementation of standards & Developing traceability
NATIONAL ANIMAL DISEASE CONTROL PROGRAMME
system;
The Government has stated that it would ensure 100%
• Capacity building with thrust on women;
vaccination of cattle, buffalo, sheep, goat and pig
• Development of quality nucleus stock and bee breeder
population (total 53 crore animals) for Foot and Mouth
Disease (FMD) and for brucellosis. Till date, 1.5 crore cows FROM ‘TOP’ TO TOTAL - RS 500 CRORE
& buffaloes tagged and vaccinated. Background: Operation Greens was announced in the
ANIMAL HUSBANDRY INFRASTRUCTURE Budget 2018-19 with an outlay of Rs 500 crores to stabilize
DEVELOPMENT FUND - RS. 15,000 CRORES the supply of Tomato, Onion and Potato (TOP) crops. It seeks
to ensure availability of TOP crops throughout the country
Background: India is the largest producer of Milk in the
round the year without price volatility. This scheme is
world with an annual milk production of around 180 MT.
implemented by the Ministry of Food Processing Industries
The per-capita availability of milk has increased to
and NAFED acts as the nodal agency.
375 grams/day as against the global average of 300
grams/day. Most of the milk in the country is produced by New announcement: Operation Greens will be
small, marginal farmers and landless laborers and hence extended from Tomatoes, Onion and Potatoes (TOP) to
considered vital to promote inclusive growth and ALL fruits and vegetables (TOTAL).
development in India. The Scheme features will be as follows:
New announcement: the Government has launched Rs
29
IN
NDIAN ECONOMY
• 50%
5 subsidy on transporttation from ssurplus to de
eficient FACILITATIVE
F LEGAL FRAMEWORK FO
OR CONTRAC
CT
markets. FARMING
F
• 50%
5 subsidy on
o storage, in
ncluding cold sstorages. What
W is Co ontract farm ming? Undeer contract farming,
Pilo
ot for 6 month
hs – Will be ex
xpanded and extended agricultural
a production (including livesttock and pou ultry) can
be
b carried ou ut based on a pre-harvestt agreement between
AM
MENDMENTS TO ESSENTIA
AL COMMODIITIES ACT
buyers
b (such as food processing unitss and exportters) and
Esssential Commodities Ac ct and its rationale: T The producers
p (farmers or farmer organizaations). The p producer
Esssential Comm modities Act was
w enacted in n 1955 to ma ake can
c sell the agricultural
a produce
p at a specific pricce in the
avaailable certainn commoditie es to the con nsumers at ffair future
f to the buyer as pe er the agreem ment. These benefits
pricces. It is useed by the Government
G tto regulate tthe both
b the prod ducers as well as the buyeers. The producer can
prooduction, supply and distribbution of com mmodities which get
g support from the buyerr for improvin ng production
n through
are
e declared as essential und der the act. T The list of items inputs (such as technolog gy, pre-harveest and post-harvest
und der the Act includes drugs,, fertilizers, puulses and edibble infrastructure) as per the agreement.
a TThe producer can also
oilss, and petrole
eum and petroleum produ ucts. The Centtral reduce
r the rissk of fluctuatiing market p rice and dem
mand. On
Gov vernment ma ay add or remmove a comm modity from tthe the other ha and, the buy yer can redu uce the risk of non-
sch
hedule in conssultation withh the State Go overnments. F For availability
a of quality
q produ
uce.
instance, in Marrch 2020, the Union Gover nment declarred
Current
C Lega
al Framework: The centtral governm ment has
maasks and hand-sanitisers as essentia al commoditties
formulated
f Model Agricultuure Produce aand Livestock Contract
und der the Esse ential Commo odities Act, 1 1955. This w was
Farming
F and Services (Pro omotion & FFacilitation) A Act, 2018
don ne in order to
o ensure that they are ava ailable to peopple
which
w provide
es for contracct farming. Acccordingly, the central
at the
t right pricee and in the right quality.
Government
G has asked th he states to u use this as rreference
AGRICULTURE MARKETING
M REFORMS
R TO
O PROVIDE while
w enacting
g their respecttive laws.
MA
ARKETING CH
HOICES TO FA
ARMERS
New
N Announ ncement: The T Governm ment will ffinalize a
Neew Announ ncement: The Inter-sttate trade and facilitative
f legal frameworkk to enable faarmers to enggage with
commmerce is placed under the Union l ist. So, accorrdingly, processors,
p aggregators, la
arge retailerss, exporters etc. in a
the
e Centre can formulate a law to prom mote, regulatte and fair
f and transparent man nner. Risk m itigation for farmers,
resstrict the inte
er- state trading of variou
us goods. Preesently, assured
a returns and qu uality standa rdization shall form
the
e APMC Acts area highly resstrictive and p
prohibit the fa
armers integral part of
o the framewwork.
from selling the eir produce too whomsoeve er they want to. We
neeed to give ad dequate freed dom to the faarmers to sell their
prooduce anywhere within India where th hey are likely to get
hig
gher prices.
►S
STRUCTUURAL REFORMS IN SECTORS
S
SU
UCH AS COAL, MIN
NERAL, CIV
VIL
AV
VIATION, DEFENCE
E ETC.

CIAL EDITION
N) for CSE 20020
30
INDIAN ECONOMY
Taking these reforms forward, some new announcements CIVIL AVIATION SECTOR
were made in the coal Sector. Efficient utilisation of Air Space: Currently, only 60 percent
1. Auction of Coal mine blocks through the Revenue sharing of the Indian airspace is freely available for passenger
mechanism instead of present fixed Rupee/tonne aircrafts and rest is controlled by military. Utilizing the rest
mechanism. of the airspace will reduce flying cost of Rs 1000 crore by
2. The entry norms will be liberalised. Nearly 50 Blocks will be saving fuel and time. The Government has stated that
offered immediately. restrictions on utilisation of the Indian Air Space will be
eased so that civilian flying becomes more efficient.
3. Coal Gasification / Liquefication will be incentivised
through rebate in revenue share. This will result in Airports through PPP: 6 more airports have been identified
significantly lower environment impact and also assist for Operation and Maintenance on Public-Private Partnership
India in switching to a gas-based economy (PPP) basis.
MINERAL SECTOR POWER SECTOR
Composite Licensing Regime: Presently, the private sector Tariff Policy laying out the following reforms will be released:
companies willing to undertake mining are required to apply Consumer Rights: DISCOM inefficiencies not to burden
for multiple licenses from the Government. For example, consumers. Standards of Service and associated penalties for
Reconnaissance Permit is granted for preliminary DISCOMs. DISCOMs to ensure adequate power. Load-
prospecting of a mineral through regional, aerial, geophysical shedding to be penalized
or geochemical surveys and geological mapping. Prospecting Promote Industry: Progressive reduction in cross subsidies.
License is granted for undertaking operations for purpose of Time bound grant of open access. Generation and
exploring, locating or proving mineral deposit. Mining Lease transmission project developers to be selected competitively
is granted for undertaking operations for mining minerals.
Sustainability of Sector: Timely payment of power
DEFENCE SECTOR generation companies. DBT for Power subsidy. Installation of
The following steps have been taken to promote "Make in Smart prepaid meters.
India" for defence production and reduce India's import of BOOSTING PRIVATE SECTOR INVESTMENT IN
defence Goods. SOCIAL INFRASTRUCTURE
Corporatisation of Ordnance Factory Board (OFB): Viability Gap Funding (VGF) Scheme: The Ministry of
Presently, the OFB is a subordinate/attached office of the Finance is presently implementing Viability Gap Funding
Department of Defence Production and has 41 factories. Scheme in order to provide financial support to the PPP
Since, it is a government department directly managed by the projects that are socially and economically desirable but
Government, it faces number of problems: financially unviable on account of lower returns, long
1. Lack of functional and operational flexibility--> Almost all gestation period etc. For such projects, the Ministry of
the approvals related to Human resource, finance, Finance provides one-time grant of up to 20% of the project
modernization etc need to be taken from government. cost.
2. Bureaucratic delays and red-tapism--> More focus on The Government or statutory entity that owns the project
rules and regulations rather than meeting the production may provide additional grants out of its budget up to further
goals. 20% of the project cost.
3. Low capacity to innovate and improve the efficiency. New Announcement: In order to boost Social Infrastructure,
4. Restrictions on entering into joint venture partnerships the Government will enhance the quantum of Viability Gap
with private sector entities etc. Funding (VGF) up to 30% each of Total Project Cost as VGF by
the Centre and State/Statutory Bodies. For other sectors, VGF
Nair Committee (2000), Kelkar Committee (2005)
existing support of 20 % each from Government of India and
recommended for corporatisation of OFB to do away with the
States/Statutory Bodies shall continue.
above-mentioned problems.
SPACE SECTOR: BOOSTING PRIVATE PARTICIPATION IN
Liberalisation of FDI norms: The FDI limit in the defence
SPACE ACTIVITIES
manufacturing under automatic route will be raised from
49% to 74%. There shall be level playing field provided to private
companies in satellites, launches and space-based services.
Reducing Defence Import Bill: Government to notify a list of
Predictable policy and regulatory environment to private
defence weapons whose import would be banned. Idea here
players will be provided. Private sector will be allowed to use
is to boost their domestic production.
ISRO facilities and other relevant assets to improve their
31
INDIAN ECONOMY
capacities. Future projects for planetary exploration, outer NATIONAL DIGITAL HEALTH MISSION
space travel etc shall also be open for private sector. Background: The National Health Policy 2017 emphasises
ATOMIC ENERGY RELATED REFORMS that lofty health ideals such as Citizen centricity, quality of
Research reactor in PPP mode for production of medical care, better access, universal health coverage, and
isotopes shall be established to promote welfare of humanity inclusiveness could be achieved by leveraging the power of
through affordable treatment for cancer and other diseases. the digital technologies. In order to give shape to such an
Facilities in PPP mode to use irradiation technology for food endeavour, the Ministry of Health and Family welfare
preservation shall also be established. appointed a committee under the leadership of
Satyanarayana to create a framework for leveraging digital
technology in the field of health.
►REFORMS IN EMPLOYMENT,
The committee has recommended for the adoption of
EDUCATION, HEALTH ETC. National Digital Health Blueprint- a document which would
The Finance Minister has come out with 7 measures for act as reference for the creation of National Digital Health
providing employment, support to businesses, Ease of doing Ecosystem (NDHE).
business and improving access to Education and Health. The Government has accepted the recommendations of the
INCREASE IN ALLOCATION FOR MGNREGA committee and has decided to implement the National Digital
The Union Budget 2020-21 had allocated Rs 61,500 crores for Health Blueprint under the National Digital Health Mission.
the MGNREGA Programme. In order to provide higher Some of the measures announced by the Government such
employment opportunities in the rural areas, the Finance as National Digital Health Mission, setting up of district level
Minister has decided to allocate an additional amount of Rs Infectious Diseases Hospitals, ramping up of diagnostic labs
40,000 crores for the MGNREGA. are noteworthy. However, these initiatives would be
HEALTH REFORMS & INITIATIVES successful only when the private sector entities and state
governments are willing to come forward. For example,
Increased investments in Public Health
diagnostic labs in the rural areas would be set up by the
• Public Expenditure on Health will be increased. (This was private sector only when the Government comes out with
already provided under the National Health Policy 2017). attractive incentives.
• Investments in grass root health institutions: Ramp up Similarly, Health is a subject under the state list and hence
Health and Wellness Centres in rural and urban areas. ultimately, the state Governments would have to take
ο Note: Under the Ayushman Bharat Scheme, the existing responsibility.
1.5 lakh Sub Health Centres and Primary Health Centres TECHNOLOGY DRIVEN EDUCATION WITH EQUITY POST-
being transformed into Health and Wellness Centres. COVID
The HWCs are to provide preventive, promotive,
PM eVIDYA programme for multi- mode access to
rehabilitative and curative care for an expanded range
digital/online education has been launched. It consist of:
of services encompassing reproductive and child health
services, communicable diseases, non-communicable • DIKSHA for school education in states/UTs; e-content and
diseases, palliative care and elderly care etc. QR coded Energized Textbooks for all grades (one nation,
one digital platform).
ο Preparing India for any future pandemics
ο National Teacher Platform (NTP) known as "DIKSHA"
• Setting up of Infectious Diseases Hospital Blocks in all
is an initiative of the Ministry of Human Resource
districts to deal with COVID-19 like pandemics in future.
Development. It is a state-of-the-art platform built to
• Strengthening of lab network and surveillance by setting host Open Educational Resources (OER) and tools for
up integrated Public Health Labs in all districts & block Teachers in Schools.
level Labs & Public Health Units to manage pandemics.
• One earmarked TV channel per class from 1 to 12 (one
• Setting up of National Institutional Platform for One health class, one channel)
under ICMR. This platform seeks to bring together various
• Extensive use of Radio, Community radio and Podcasts
Indian institutions involved in the R&D of infectious
diseases such as COVID-19. This platform seeks to develop ο Special e-content for visually and hearing impaired.
core capacity to deliver the One health Approach to ο Top 100 universities will be permitted to automatically
prevent, detect, and respond to infectious disease start online courses by 30th May, 2020.
outbreaks in animals and humans. ο Manodarpan- An initiative for psychosocial support of
students, teachers and families for mental health and
32
INDIAN ECONOMY
emotional wellbeing to be launched immediately. least one enterprise will remain in the public sector but
EASE OF DOING BUSINESS THROUGH IBC RELATED private sector will also be allowed
MEASURES • In other non-strategic sectors, PSEs will be privatized.
Increase in threshold for invoking IBC for the Corporate: SUPPORT TO STATE GOVERNMENTS
Since, the COVID-19 pandemic has made it difficult for the • The Constitution of India confers the power of borrowing
MSMEs to repay their loans, the Government has decided to on both the Centre (Article 292) and the States (Article
increase the threshold for invoking IBC for the corporate 293).
entities from Rs 1 lakh to Rs 1 crore.
• However the Central Government has unrestricted powers
DECRIMINALIZATION OF COMPANIES ACT DEFAULTS of borrowing in India and from abroad subject only to
• Company Law Committee (CLC) appointed by the Ministry such limits as may be fixed by the Parliament by law
of Corporate affairs has given number of (Article 292). On the contrary, the borrowing powers of the
recommendations to decriminalize various provisions of States are limited (Article 293). Presently, these limits are
the Companies Act to improve the ease of doing business. set in accordance with a formula that ensures that the
• Companies (Amendment) Bill, 2020 was put before the fiscal deficit of no State exceeds 3% of Gross State
Lok Sabha in March 2020 to decriminalize number of Domestic Product.
provisions. NEW ANNOUNCEMENT
• The Companies (Amendment) Bill, 2020 was not taken up • The Centre has decided to increase the borrowing limit of
for discussion in the Parliament due to COVID-19. The the States from 3% to 5% for 2020-21. This will give States
Government would go for ordinance route in order to give extra resources of Rs. 4.28 lakh crores.
effect to the amendments to the Companies Act. • However, the increase in the borrowing limit of the states
DIRECT LISTING OF INDIAN COMPANIES IN FOREIGN is conditional wherein the state governments are required
JURISDICTIONS to bring in reforms to avail the enhanced limit. Some of
Background: The existing legal framework in India does not these reform measures are: universalisation of ‘One
permit the direct listing of equity shares of companies Nation One Ration card’, Ease of Doing Business, Reforms
incorporated in India on foreign stock exchanges. Similarly, in Power distribution and Improvement in Urban local
companies incorporated outside India cannot directly list body revenues.
their equity shares on Indian stock exchanges.
The only available routes for companies incorporated in India ►ECONOMIC BOYCOTT OF CHINA
to access the equity Capital markets of foreign jurisdictions is The Economic boycott of China within India may take
through the American Depository Receipts (“ADR”) and different forms as delineated below:
Global Depository Receipts (“GDR”) regime.
A. Vocal for Local Campaign:
Companies incorporated in India can list their debt
• Boost local Manufacturing of Goods: This has to be done
securities on foreign stock exchanges directly through the
by both domestic companies and foreign companies in
masala bonds and/or foreign currency convertible bond
India. This is same as "Make in India" wherein we need to
(“FCCB”)/foreign currency exchangeable bonds (“FCEB”)
boost manufacturing sector.
framework.
• Boost Local Supply Chain: The entire supply chain for the
On the other hand, companies incorporated outside India
manufacture of Goods should be set up in India to give
can access the Indian capital markets only through the
further thrust to manufacturing sector and make India
Indian Depository Receipts (“IDR”) framework
self-reliant.
PUBLIC SECTOR ENTERPRISE POLICY FOR A NEW, SELF-
• Boost demand for Goods manufactured in India: The
RELIANT INDIA
Indian Consumers need to be vocal about the Indian
New Announcement: Government will announce a Public Goods. They must not only buy such Goods but must also
Sector Enterprise Policy. The broad contours of the policy promote them.
is as given under:
B. Boycott of Chinese Goods: India had a total merchandise
• All the sectors would be opened up for private sector. The trade deficit of around $184 bn in 2018-19. Out of this,
Public sector enterprises would play important role in China alone accounted for trade deficit of around $ 54bn.
certain strategic sectors only. The higher trade deficit with India is on account of entry of
• List of strategic sectors requiring presence of PSEs in cheaper Chinese Goods into the Economy.
public interest will be notified. In such strategic sectors, at
33
IN
NDIAN ECONOMY
C. Stringent
S FDI Norms: the decrease in tthe share pricces has ADVERSE
A IMP
PACT ON INDIAN ECONOM
MY
exposed
e the Indian
I compaanies to hostille and opporttunistic The
T boycott off Chinese Goo ods and impo osition of high
her tariffs
take
t over by y Chinese Companies.
C H
Hence, in ord der to on
o such Good ds may have e an adversee impact on d domestic
prevent the hostile takeo overs of Inddian Compan nies by manufacturing
m g and Job cre eation within India. In som me of the
foreign
f Comp panies, the Goovernment off India has twweaked cases,
c we do o not have other altern native suppliers. For
the
t FDI Policy making it difficult for China based example,
e China accounts for almost 3/4th of th he global
companies
c to
o invest throug
gh FDI. battery
b manu ufacturing cap pacity and heence India's ability to
D. Cancellation
C n of projec cts awarded d recently
y: the adopt
a electric vehicles is criitically depen dent on China.
Dedicated fre
eight corridorr Corporation
n (DFCCL) can
ncelled STRATEGIES
S TO
T BE ADOPT
TED BY THE G
GOVERNMENT
T
the
t project of
o signalling which was earlier award ded to
In the age of Globalisation,
G we must reallise that everyy country
Chinese
C Company
can
c aspire to o become self-dependen nt. But it ca an never
E. Imposition of
o higher tariffs on Chine se Goods: Re ecently, become
b so. Itt has to rely on other couuntries for nu umber of
the
t Ministry of
o Commerce e and Industrry has stated that it reasons
r such as cheaper raw r materialss, market forr finished
may increasee the import duties on a round 300 C Chinese Goods,
G attractting FDI and FPI
F etc. Hencee, India’s call ffor “Vocal
products in order to boostt domestic maanufacturing. for
f Local” mu ust factor in this reality. India’s path towards
F. Country
C of Origin
O in the GeM
G Portal: IIn order to prromote “Aatmanirbhar” has to tak ke support off Globalisatio on rather
local produccts, the Union governm ment has made it than going against it. Strategies to be adopted by
mandatory for all sellers on the e Governme ent e- Government:
G
Marketplace (GeM) to lisst the counttry of origin while • Slogan for “Vocal for Local” must be accompa anied by
registering ne
ew products. The sellers on n portal shou uld also structural reforms
r which
h would makke it easier fo
or foreign
indicate perceentage of loca
al content in p
products. companies to establish their
t base in I ndia.
G. Digital Strike e: The Goverrnment has b banned 59 CChinese • Focusing on providing enhanced skkill sets to ou
ur young
apps
a includinng very pop pular ones li ke the TikTo ok, UC work force and reap dem
mographic divvidend.
Browser, ShareIt, and Cam mScanner. Th ese measure es have
• Ensure free and fair competition b between Fore eign and
been underta aken based onn credible info
ormation thatt these
domestic companies. Domestic ccompanies m must be
apps
a are engaged in acttivities which h are prejudicial to
encouraged d to invest in n R&D, impro ove the stan
ndards of
sovereignty
s and integrityy of India, Defence of India,
their produucts and compete with forreign companies. They
security
s of sta
ate and publicc order.
have to winn the supportt of Indian coonsumers on tthe basis
CHALLENGES AS
SSOCIATED WITH
W SUCH ST
TRATEGIES of their qua
ality, innovatio
on and pricess.
Minnimal Impac ct on Chines se Economy: India accoun nts for • India’s aspiration of $ 5 trillion
t econo
omy cannot bee fulfilled
onlly around 3.1% of China's exports. Sim ilarly, China'ss FDI in by followinng closed eco onomic modeel. India need ds to be
Ind
dia stands at hardly
h aroundd $ 2.3 bn outt of the total $ 50 bn even more competitive, open and in nnovative to g
grow into
ann
nual FDI inflow
ws into India. larger econ nomy. Hence e, the Goverrnment must refrain
from follow
wing protectionist and anti--globalisation policies.
►GARIB
► KALYAN
N ROJGAR
R ABHIY
YAAN
SALIENT
S FEAT
TURES GARIB
B KALYAN ROJ
OJGAR ABHIYA
AAN
• Objective: Massive employment generation-ccum-rural
infrastructu
ure creation programme.
p
• Target bene
eficiaries: Returnee Migran
nts
• Duration: 125
1 days
• Coverage: 116 districtts in the sixx States- UPP, Bihar,
Rajasthan, MP, Jharkh hand, Odishaa. Emphasis on 27
Aspirationa
al Districts.
• Scope of Work:
W Engage
ed in 25 Publlic works- Community
Sanitation, Roads, Co
onstruction of wells, National
Highways, Jal Jeevan Mission, PMAY ettc.

CIAL EDITION
N) for CSE 20020
34
INDIAN ECONOMY
• Ministries involved: Coordinated effort between 12 Gender discrimination: The Code prohibits gender
different Ministries/Departments, namely, Rural discrimination in matters related to wages and recruitment of
Development, Panchayati Raj, Road Transport & Highways, employees for the same work or work of similar nature.
Mines, Drinking Water & Sanitation, Environment, Advisory boards: The central and state governments will
Railways, Petroleum & Natural Gas, New & Renewable constitute advisory boards. The Central Advisory Board will
Energy, Border Roads, Telecom and Agriculture. consist of: (i) employers, (ii) employees (in equal number as
• Is it a new scheme? No. It is the amalgamation of the employers), (iii) independent persons, and (iv) five
existing schemes/programmes which are presently representatives of state governments. State Advisory Boards
implemented by the 12 Ministries and departments. will consist of employers, employees, and independent
persons. Further, one-third of the total members on both the
central and state Boards will be women. The Boards will
►CODE ON WAGES
advise the respective governments on various issues
Previously there was 44 central laws regulating different including: (i) fixation of minimum wages, and (ii) increasing
aspects of labour. In line with the recommendations of employment opportunities for women.
Second National Commission on Labour, the government
simplified, rationalized and amalgamated various labour laws
into four Labour Codes – ►PM SVANIDHI
• Code on Wages The Ministry of Housing and Urban Affairs has launched a
Special Micro-Credit Facility Scheme - PM SVANidhi PM Street
• Industrial Relations
Vendor's Atma Nirbhar Nidhi, for providing affordable loans
• Social Security and Occupational Safety to street vendors who have been adversely affected due to
• Health and Working Conditions COVID-19 pandemic.
Now, the Union Labour and Employment Ministry published Beneficiaries: Street vendors/ hawkers vending in urban
the draft rules framed for the implementation of the Code on areas, surrounding peri-urban and rural areas.
Wages Act, 2019. Who will provide the Credit? Scheduled Commercial Banks,
IMPORTANT PROVISIONS OF THE CODE ON WAGES Regional Rural Banks, Small Finance Banks, Cooperative
Objective: It seeks to regulate wage and bonus payments in Banks, Non-Banking Financial Companies, Micro-Finance
all employments where any industry, trade, business, or Institutions and SHG Banks.
manufacture is carried out. The Code replaces the following SIGNIFICANCE OF THE SCHEME
four laws: (i) the Payment of Wages Act, 1936, (ii) the • This is for the first time in India’s history that street
Minimum Wages Act, 1948, (iii) the Payment of Bonus Act, vendors from peri- urban/ rural areas have become
1965, and (iv) the Equal Remuneration Act, 1976. beneficiaries of an urban livelihood programme.
Coverage: The Code will apply to all central and state • It is also for the first time that MFIs/ NBFCs/ SHG Banks
government employees. have been allowed in a scheme for the urban poor due to
Floor wage: The central government will fix a floor wage, their ground level presence and proximity to the urban
taking into account living standards of workers. It may vary poor including the street vendors.
for different geographical areas.
The minimum wages decided by the central or state ►INDIA’S FIRST GAS TRADING HUB
governments must be higher than the floor wage. In case the
The Government of India has envisaged ushering a Gas Based
existing minimum wages fixed by the central or state
economy by increasing the share of natural gas in primary
governments are higher than the floor wage, they cannot
energy mix of the country from current level of about 6 % to
reduce the minimum wages.
15% by 2030. In this regard, the government has recently
Fixing the minimum wage: The Code prohibits employers
launched India's first Gas Trading Hub, Indian Gas Exchange
from paying wages less than the minimum wages.
Limited (IGX).
Overtime: The central or state government may fix the
• It facilitates buyers and sellers to come together and
number of hours that constitute a normal working day. In
transact in natural gas as the underlying asset.
case employees work in excess of a normal working day, they
• Its core function is to ensure fair and transparent
will be entitled to overtime wage, which must be at least
transactions as well as efficient price discovery.
twice the normal rate of wages.
35
INDIAN ECONOMY
• Allow buyers and sellers of natural gas to trade both in the The Energy Efficiency Services Limited (EESL) has launched
spot market and in the forward market for imported “Healthy and Energy Efficient Buildings” in partnership with
natural gas across three hubs —Dahej and Hazira in the U.S. Agency for International Development’s (USAID)
Gujarat, and Kakinada in Andhra Pradesh. MAITREE program.
The Market Integration and Transformation Program for
►NATIONAL RUBBER POLICY Energy Efficiency (MAITREE) is aimed at accelerating the
adoption of cost-effective energy efficiency as a standard
• India is currently the sixth largest producer and second
practice within buildings, and specifically focuses on cooling.
largest consumer of natural rubber in the world.
MAITREE is a part of the US-India bilateral Partnership
• Traditional rubber-growing states comprising Kerala and between the Ministry of Power and USAID. The program
Tamil Nadu account for 81% of production. works closely with Energy Efficiency Services Limited (EESL),
• Major non-traditional rubber growing regions are the Bureau of Energy Efficiency (BEE) as well as other government
North Eastern states of Tripura, Assam and Meghalaya, agencies and public and private sector partners.
Odisha, Karnataka, Maharashtra and West Bengal. ABOUT EESL
LEGAL AND INSTITUTIONAL FRAMEWORK It is a joint venture of PSUs under Ministry of Power. The
• The Rubber Act, 1947 provides for the development of the Initiatives of Energy Efficiency Services Limited (EESL) include:
rubber industry under the control of the Union. • UJALA SCHEME: UNNAT JYOTI BY AFFORDABLE LEDS
• The Rubber Board, headquartered at Kottayam, Kerala, FOR ALL: It involves distribution of the energy efficient LED
under the administration of the Ministry of Commerce bulbs to the consumers.
and Industry has been effectively supporting the rubber • Street Lighting National Programme (SLNP): Under the
industry. programme, EESL replaces the conventional streetlights
• 100% Foreign Direct Investment (FDI) in plantations of with LEDs at its own costs.
rubber, coffee, tea, cardamom, palm oil tree and olive • Atal Jyoti Yojana (AJAY): To illuminate dark regions
oil tree. through establishment of solar streetlights.
BROAD CONTOURS OF NATIONAL RUBBER POLICY 2019
• The government must explore the possibility of treating ►BORDER ADJUSTMENT TAX (BAT)
natural rubber as an agricultural product and income from
The Ministry of Commerce has urged the Department of
rubber production as agricultural income for all practical
Revenue to consider imposing a Border Adjustment Tax in
and legal purposes.
the form of an additional customs duty
• The domestic production of natural rubber should be able
WHAT IS BORDER ADJUSTMENT TAX (BAT)?
to meet at least 75% of the requirement in 2030.
The Border Adjustment Tax (BAT) is form of additional
• Government must explore the possibility of increasing the
customs duty which is imposed on the imported goods. The
area under rubber plantation, particularly in the non-
idea behind the imposition of such a tax is to ensure that the
traditional states.
prices of imported Goods are brought on par with domestic
• Import policy on natural rubber should accord protection Goods. Thus, it seeks to create a level playing field between
to rubber growers against unwarranted imports adversely domestic Goods and Imported Goods.
influencing domestic prices, and at the same time ensure
WILL A BORDER ADJUSTMENT TAX BE WTO COMPATIBLE?
availability of the raw material for consumers at affordable
prices. • Under the WTO, the member countries have already
decided on the upper limits on the Customs duties on
• Further, the brand “Indian Natural Rubber” distinguishing
various products. The Imposition of additional customs
Indian rubber in the international market with its assured
duty in the form of BAT may violate this upper limit. Hence,
and consistent quality parameters may also be promoted.
other member countries may file case against India under
• Capacity of existing departmental nurseries under Rubber the WTO dispute Settlement mechanism.
Board should be fully utilized for propagation of
• However, India’s Commerce Ministry believes that the
genetically superior and quality planting materials.
proposed extra customs duty through the Border
Adjustment Tax is compatible to global trade norms. The
►HEALTHY AND ENERGY EFFICIENT argument of Commerce Ministry is based on article II: 2(a)
BUILDINGS INITIATIVE of GATT. Under this provision, member countries can
impose additional customs duties to bring the prices of
36
INDIAN ECONOMY
imported Goods on par with the domestic Goods. India • Clear and Unambiguous taxation regime would attract
believes that it can take support of such a provision to more FDI.
impose Border Adjustment Tax (BAT). AAR FOR GST
• The Authority for Advance Ruling (AAR) and Appellate
►EQUALISATION LEVY Authority for Advance Ruling are the statutory bodies
A number of countries across the world such as Austria, constituted under the provisions of State Goods and
Brazil, the Czech Republic, the EU, France, India etc. have Services Tax Act or Union Territory Goods and Services Tax
imposed digital tax on the Internet-based non-resident Act.
companies such as Amazon, Google, Facebook etc. • The ruling given by the AAR & AAAR will be applicable only
DETAILS ABOUT EQUALIZATION LEVY within the jurisdiction of the concerned state or union
territory.
The equalization levy of 6% is applicable to the income
accruing to a foreign E-commerce company which is not a • An advance ruling pronounced by AAR or AAAR shall be
resident of India. Any person or entity in India which makes a binding only on the applicant who has sought the advance
payment exceeding Rs 1 lakh in a financial year to a non- ruling and on the concerned officer or the jurisdictional
resident technology company (such as Google) for some B2B officer in respect of the applicant. This clearly means that
(Business to Business) transactions needs to withhold 6% of an advance ruling is not applicable to similarly placed
the gross amount to be paid as equalization levy. other taxable persons in the State. It is only limited to the
person who has applied for an advance ruling.
The two conditions to be met to be liable to equalization levy:
• The payment should be made to a non-resident service
provider;
►PROMOTION OF SELF-RELIANCE IN
• The annual payment made to the service provider should PHARMACEUTICAL SECTOR
exceed Rs. 1 lakh in one financial year. • The Indian Pharmaceutical Industry is the third largest in
EXPANSION OF EQUALISATION LEVY IN UNION BUDGET the world in terms of volume and 14th largest in terms of
2020 Value.
The Finance Act, 2020 has inserted a provision to impose • The total revenue from Pharmaceutical products in 2018-
Equalisation levy of 2% on the revenues generated by non- 19 was $ 41 bn, including $ 20 bn worth exports.
resident e-commerce companies. The Equalisation levy would • There is a need to reduce our dependence on the import
be applicable only if the aggregate revenues for a non- of Active Pharmaceutical Ingredients (APIs) from China.
resident e-commerce companies exceed a threshold of Rs 2
• Currently, the APIs in the Indian market are mainly used
crores.
for the development of generic drugs.
UNDERSTANDING ACTIVE PHARMACEUTICAL
►AUTHORITY FOR ADVANCE RULING INGREDIENTS (APIs)
(AAR) • All drugs are made up of two core components – API
• In some of the cases, the taxpayers may be confused or (Central ingredient) and Excipient (Helps deliver the
uncertain about certain tax provisions. Hence, before medication).
starting the proposed activity, they would want an • The Active Pharmaceutical Ingredient (API) is the part of
authoritative direction from the government to provide any drug that produces the intended effects. Some drugs,
clarification on tax liability. such as combination therapies, have multiple active
• In this regard, advance tax ruling is a written interpretation ingredients. The Excipients are chemically inactive
of tax laws issued by the Authority for Advance Rulings substances, such as lactose or mineral oil in the pill.
(AAR) to the individuals and corporations to provide • For example, if the API is a solid and the drug is required to
clarification on tax related matters. have a liquid dosage form, such as a cough syrup, then the
BENEFITS OF ADVANCE RULINGS excipients would be the liquids that are used to formulate
the syrup.
• Provide certainty in tax liability in advance in relation to an
activity proposed to be undertaken. MAIN REASONS FOR THE INCREASE IN IMPORTS INCLUDE:
• Reduced tax litigation • Imports from China work out to be cheaper and cost-
effective. (China is largest producer of APIs accounting for
• Improve Ease of Doing Bussiness
20% of world's production)
37
INDIAN ECONOMY
• Uncertainty of price fluctuations from other producers needs.
such as US, Italy etc. • Grid-connected Areas: Replacement of diesel agriculture
• Lack of suitable policies and incentives to boost indigenous pump sets with 15 lakh Solar Agriculture Pumps--> Use the
development and production of essential APIs within India. generated solar power to meet the irrigation needs and
• Time consuming environmental clearances and Red- the excess solar power will be sold to DISCOMs.
tapism National Wind-solar Hybrid Policy
INITIATIVES TAKEN BY GOVERNMENT TO PROMOTE • Rationale: Superimposition of wind and solar resource
MANUFACTURE OF APIs maps shows that there are large areas where both wind
• Scheme for Promotion of Bulk Drugs: This scheme seeks to and solar have high to moderate potential. The existing
finance common infrastructure facilities in 3 mega Bulk wind farms have scope of adding solar PV capacity and
Drug parks in partnership with States. Government of similarly there may be wind potential in the vicinity of
India will give Grants-in-Aid to States with a maximum limit existing solar PV plant.
of Rs. 1000 Crore per Bulk Drug Park. • Strategy: Hybrid System--> Wind Turbine Generators
• Production Linked Incentive Scheme: Financial incentive to (WTGs) and Solar PV systems can operate on same land.
eligible manufacturers of identified 53 critical bulk drugs However, for being considered as Hybrid system, the
on their incremental sales over the base year (2019-20) for Installed capacity of at least one of them should be
a period of 6 years. minimum 25%.
• Champion Sectors: As part of Make in India, Government

has identified 27 Champion sectors- 15 in Manufacturing ►NATIONAL PENSION SYSTEM
and 12 in Services. Apart from Pharmaceuticals, the 27 The National Pension System (NPS) has recently released its
champion sectors also include bio-technology, capital subscription numbers for the first quarter of 2020-21. The
goods, chemicals and petro-chemicals, electronics, leather scheme has seen 30% increase in the subscriber base during
& footwear, food processing, gems and jewellery, railways, this period. The total number of subscribers presently stand
tourism, transport and logistics, accounting and financial at around 10.13 lakh in the age group of 18 to 65 years.
services, education and legal services etc.
NATIONAL PENSION SYSTEM
• Pension cum investment scheme to provide old age
►INITIATIVES TO BOOST SOLAR security to Citizens of India. Regulated by Pension Fund
POWER Regulatory and Development Authority (PFRDA)
Rewa Ultra Mega Solar Power project has been • Any individual citizen of India (both resident and Non-
inaugurated recently. resident) in the age group of 18-65 years
• Top 3 States in Installed Wind Power (as on 31st Dec 2019): PENSION SCHEMES FOR THE UNORGANISED SECTOR
Tamil Nadu, Gujarat and Maharashtra Pradhan Mantri Shram Yogi Maan-Dhan
• Top 3 States in Installed Solar Power (as on 31st Dec 2019): • Ministry: Labor and Employment
Karnataka, Rajasthan and Tamil Nadu • Voluntary and contributory pension scheme
INITIATIVES TO BOOST SOLAR ENERGY • 50:50 contribution by subscriber and central Government.
National Solar Mission • Eligibility: Unorganized Workers with less than Rs 15,000
• Target: 100 GW of Solar Power by the end of 2022 monthly salary and in age group 18-40 years.
• 40,000 MW of Solar power through 50 Solar Parks • Minimum Assured Pension: Rs 3000/- per month after
(Capacity of 500 MW and Above) attaining the age of 60 years.
• 40,000 MW by Grid-connected roof up Solar Programme • Family Pension: Death of Subscriber --> 50% of the pension
PM-KUSUM scheme to the spouse
• Setting up of 10,000 MW of Grid-Connected Solar and • Contribution by Subscriber: Depends upon age of entry.
Other Renewable energy plants on Barren/Uncultivable Atal Pension Yojana
land--> Sell Power to DISCOMs and earn Income. • Guaranteed pension of Rs.1000 to Rs.5000 (depending
• Off-Grid Areas: Replacement of diesel agriculture pump upon contribution) receivable at the age of 60 years.
sets with 20 lakh Solar Agriculture Pumps--> Reduce the • Eligibility: Primarily focused on Unorganised workers (But
dependence of farmers on diesel and meet their irrigation any Indian Citizen in the age-group 18 to 40 years can join
38
INDIAN ECONOMY
through their savings bank account or post office savings
Automatic
bank account)
up to 49%
• Government Contribution: 50% of total prescribed
3 Defence 100% Government
contribution up to Rs 1000 per annum.
Route
• Conditions:
beyond 49%
ο Available only for a period of 5 years.
ο Subscribers should not be Income tax payers Government
4 Print Media 26%
Route
►RECENT CHANGES IN FDI POLICY

5 Airports 100% Automatic
The outbreak of COVID-19 has adversely affected various
firms in India. Recently, Chinese Central Bank brought 1.75
Automatic
crore shares of HDFC Bank leading to increase in its
up to 49%
ownership from 0.8% to 1.01% of the total shareholding of
6 Telecom 100% Government
HDFC. Hence, in order to prevent the hostile takeovers of
Indian Companies by foreign Companies, the Government of Route
India has tweaked the FDI Policy. beyond 49%
UNDERSTANDING FOREIGN DIRECT INVESTMENT

Automatic
• According to the guidelines issued by the Government,
up to 49%
foreign investment of less10% in a listed Indian Company
7 Single Brand Retail 100% Government
is considered as Portfolio Investment. Foreign Investment
Route
of 10% or more in a listed Indian company is considered as
beyond 49%
Foreign Direct Investment.
• FDI leads to both ownership and management control of a
Automatic
company, while FPI provides for only ownership in
up to 49%
accordance with the shareholding.
8 Private Sector Banks 74% Government
PRESENT FDI POLICY route
Since, the 1991 LPG Reforms, the Government of India has beyond 49%
opened up FDI in almost all the sectors of Indian Economy as
shown below: Government
9 Public Sector Banks 20%
Route
Sl. FDI
Sector Route
No Limit
Automatic
10 Insurance and Pension 49%
Route
Agriculture and allied activities:
• Floriculture, Horticulture, and FDI under sectors is permitted either through Automatic
Cultivation of Vegetables & route or Government route. Under the Automatic route, the
Mushrooms under controlled non-resident or Indian company does not require any
conditions; approval from Government of India. Whereas, under the
1 • Development and Production of 100% Automatic Government route, approval form the Government of India is
seeds and planting material; required prior to investment. Proposals for foreign
investment under the Government route are considered by
• Animal Husbandry, Pisciculture,
the respective Administrative Ministry/Department.
Aquaculture, Apiculture; and
SECTORS WHERE FDI IS PROHIBITED
• Services related to agro and
allied sectors • Lottery Business including Government/private lottery,
online lotteries, etc.
2 Coal Mining 100% Automatic • Gambling and Betting including casinos etc.
• Chit funds and Nidhi company
• Trading in Transferable Development Rights (TDRs)
39
INDIAN ECONOMY
• Manufacturing of cigars, cheroots, cigarillos and cigarettes, under multilateral institutions such as World
of tobacco or of tobacco substitutes External Debt Bank, IMF, ADB etc.
• Activities/sectors not open to private sector investment • Bilateral Debt: Debt from sovereign
such as Atomic Energy and Railway operations. countries such as Japan, Germany etc.
RECENT CHANGES • Trade Credits/Export Credits: Loans
Earlier Regime: A citizen of Bangladesh or an entity and credits extended for imports
incorporated in Bangladesh and Pakistan can invest only directly by overseas supplier, bank and
under the Government route. Further, FDI from Pakistan is financial institutions
not allowed in sectors such as defence, space and atomic • External Commercial Borrowings:
energy. Loans from commercial banks, other
New Regime: According to the new regime, entities from commercial financial institutions
countries which share a land border with India will now be • Non-Resident Deposits in Banks and
permitted to invest only under approval route. This means Financial Institutions
that the FDI proposal from bordering countries will now
• Cumulative External Debt: At end of
require government clearance, even if foreign investments
March 2020, India’s external debt was
for that sector is placed under approval route. So, going
placed at US$ 558 billion (20.6% of the
forward, FDI from China, Pakistan, Bangladesh, Nepal,
GDP). This is $ 15bn higher as
Myanmar, Bhutan and Afghanistan would compulsorily
compared to India's external debt of $
require Government’s approval.
543 bn at the end of March 2019.
The rules have been tightened not just for fresh but existing
• Composition of Debt: Non-Sovereign
FDI as well. Transfer of ownership of any existing or future
Debt (Non-Government Debt) : 17% of
FDI where the direct or indirect beneficiary is from these
the GDP; Sovereign Debt (Government
countries will also require government approval.
Debt): 3.6% of the GDP.
Note: • Components of Debt: External
1. India shares a land border with China, Pakistan, Present status Commercial Borrowings (ECBs)
Bangladesh, Nepal, Myanmar, Bhutan and Afghanistan. of External accounting for 40% of external debt
2. As of now, changes have been made only to foreign direct Debt remains the largest source of External
investment and not foreign portfolio investment (FPI) Debt followed by Non-resident
rules. There are speculations that SEBI may also come out deposits.
with such restrictions. • Duration of Debt: Long term debt
(maturity of more than 1 year)
accounts for 81% of external debt;
EXTERNAL SECTOR Short-term debt (maturity of less than
1 year) accounts for 19% of external
►RBI’S STATUS REPORT ON EXTERNAL debt
DEBT • Denomination of Debt: US dollar

(53%); remaining in Rupee, Yen, SDR
The External debt includes the total money owed by the
and Euro.
Government, Corporations or Indian Citizens to foreign
creditors. The Foreign Creditors could be Foreign
Government, Multilateral Institutions (World Bank, IMF etc), ►DOLLAR SWAP LINE
private commercial banks etc.
Recently, there has been large-scale outflow of FPIs from
• Duration of loan- Short-term (less than India leading to shortage of dollars and consequently record
1 year) and long-term (more than 1 fall in the value of Rupee vis-a-vis dollars. Hence, in order to
Categorisation address the current volatility in the exchange rate and to
year)
of External make available dollars in the domestic market, India is in
• Sovereign Debt (Government) and
Debt discussion with US for Dollar Swap line. India has already
Non- Sovereign Debt (Other than
entered into currency swap agreements with number of
Government, including private sector)
countries such as Japan, UAE, SAARC countries etc.
Major Heads • Multilateral Debt: Debt from the
40
IN
NDIAN ECONOMY
UNDERSTAND
U DING THE H1B VISA
• The H1B Visa is a special form of non n-immigrant w work visa.
It enables the compan nies based in n USA to te emporary
employ the foreign em mployees forr the speciallized job
designation
n. They can hire
h the non--residential wworker in
the specialized occupatiions like arch hitecture, eng
gineering,
mathematics, science, and mediccine which requires
technical expertise. Further, the students w who are
HO
OW WOULD IT
T BENEFIT INDIA? pursuing th
heir higher Ed ducation in U USA can also get H1B
• The
T dollars availed
a under this route w
would act as ssecond Visa to work in USA afterr their graduaation.
line of defence after the Forex Reservves to deal with the • Apart from the H-1B visas, the US go overnment alsso issues
volatility.
v L1 visas wh
hich allows co
ompanies to ttransfer high
hly skilled
• Reduce the speculation
s in
n the forex m
market and p
provide workers to US to work fo
or a certain du
uration.
stability
s to the
e exchange ra
ate.
►NET
► INTERNATIONAL IN
NVESTME
ENT
►F
FOREX RE
ESERVES CROSS $ 500bn POSITION
P N (NIIP)
Acccording to the latest data
a released byy the RBI, the e forex Recently,
R the RBI has re eleased the Net Internattional
resserves have crossed
c $500
0-billion markk for the firsst time Investment Poosition (NIIP) of the Indian
n Economy a
as on
eveer. March
M 2020.
REA
ASONS FOR INCREASE IN THE FOREX R
RESERVES WHAT
W IS NET INTERNATION
I NAL INVESTMEENT POSITION
N (NIIP)?
Apppreciation in Non-Dollar Major Curren ncies: As disccussed The
T Balance of
o payments (BoP)
( shows transactions between
beffore, the Foreign currency y assets is h
held in the foorm of residents
r and non-residents of an econ
nomy for a pperiod of
maajor currencie es like Dollar,, Euro, Pound
d, Yen etc. but it is one
o year. These economic transactionns may lead d to two
exppressed in te erms of dolllars. The vallue of the F Foreign results:
r
Currrency assetss could chan nge on accou unt of increaase or
1 Residents from India owning
1. o assetts in other ccountries
deccrease in the value of the e non-dollar mmajor currenccies. In
(such as Foreign Investmment, Equitiess, Debt, Depossits etc in
lastt 2-3 weeks, the dollar has depreciated by around 4.5% vis-
other counttries) - Assetss for Indian Ecconomy
a-v
vis other currrencies such as Euro, Po ound, Yen etc. This
increase in the value of oth her major cu rrencies has led to 2 Residents from
2. f other countries ownin ng assets in In
ndia such
increase in Forex x Reserves as FDI, FPI, Deposits etc. – Liabilities fo
for Indian Econnomy
• Increase in FPI Inflows:: In March 2 2020, the FPIs had Due

D to these e transactions recorded o on BoP, a p particular
pulled out Rs R 60,000 crrores from tthe capital m market economy
e builds up stock of external financial assets and
leading to Ru upee Depreciation. Howevver, in the la ast 2-3 liabilities. Thus, NIIP has be
een introduceed in order to measure
weeks,
w the FP
PIs have noww returned to the Indian mmarkets the total stock k of external financial asseets and liabilities. It is
due
d to posittive investor sentiment. FFurther, the recent calculated
c as (Assets owneed by residentts in other co ountries -
rights issue of Jio Pla atform also attracted record Assets
A owned by non-residents within In ndia).
FPI inflows. RBI'S
R REPORT
T ON NIIP
• Decrease in Crude Oil Prrices: The deccrease in the Crude The
T NIIP of India stands at - 379 $ bn ass on March 2 2020. The
oil
o prices alsoo meant deccrease in our oil import bbill and negative
n value
e of NIIP ind
dicates that o
our external liabilities
thus
t saving our Forex Rese
erves. ($1094 bn) are higher than
n our Externaal Assets ($715 bn). In
• RBI's Interve
ention: The RBI has also
o intervened in the terms of perce
entage of GDP, NIIP standss at -14% as o
on March
Forex Marke et to buy doollars and e
enhance the Forex 2020.
2
Reserves.
►OFF-SH
► HORE DER
RIVATIVE
E
►ISSUE OF H1B VIISA INSTRUM
I MENTS
Thee US Econom my has been severely
s hit b
by COVID-19 leading The
T Investments through participatory
p notes (P-note es) in the
to increase in thet unemplo oyment rate to around 13%. In capital
c markett has increase
ed to Rs 62,0000 crores till June-end,
ressponse, the Trump
T Administration has decided to rrestrict making
m it the third
t consecu
utive monthly rise.
the
e issuance off various categories of n on-immigrantt work
Offshore
O Derrivative Instrruments (ODDIs), also kn
nown as
visaa, including H1 B Visa for th
he rest of the calendar yea
ar.
Participatory
P notes (p-notes) are instrruments used
d by the

CIAL EDITION
N) for CSE 20020
41
IN
NDIAN ECONOMY
foreign investors to investt in India’s securities m markets 1. Preferential Trade Agree
ement (PTA): countries ma
ay decide
witthout getting registered with
w the SEBI. Participatoryy notes to reduce th
he customs duty on commmonly agreed g
goods.
are
e issued by FPIs registeredd with SEBI to
o overseas/ fforeign Eg: India- Afghanistan
A PT
TA (2003)
inv
vestors. Thesee FPIs make investmentss on behalf of the
2.
2 Free Trade e Agreement (FTA): coun ntries may d decide to
oveerseas investo
ors.
reduce or eliminate the customs duty on co ommonly
WH
HY DO INVEST
TORS PREFER
R TO INVEST T
THROUGH P-- agreed goo ods. Normally y, the FTAs co over trade in g
goods or
NO
OTES? trade in services. FTAs can
c also coveer other areass such as
• Ease of Trading since they are no
ot required to be intellectual property righ
hts (IPRs), invvestment, govvernment
registered witth SEBI procurement and compe etition policy, etc.
• It gives the Investors the necessary leve
el of anonymitty Example: India-ASEAN FTA
F in Goods
• Used by som
me of the Investors as a strategy o
of Tax 3.
3 Comprehen nsive Econoomic Coopperation Ag
greement
Avoidance
A (CECA)/Commprehensive Economic Paartnership Ag greement
• Preferred route for haw wala operatorrs wherein money (CEPA): The
ese terms desscribe agreem
ments which cconsist of
initially goes out of the country through
h Hawala rou
ute and an integratted package on
o goods, serrvices and invvestment
then
t enters back
b through P-Notes
P along with other areas including
i IPR,, competition etc. The
India Japan
n CEPA is on ne such exam mple and it covers a
WH
HAT ARE THE CONCERNS??
broad rang ge of other areas like ttrade facilitattion and
Increase in P-NNotes may po ossibly lead to increase in the customs coooperation, inv
vestment, commpetition, IPR
R etc.
infllow of unacccounted money where in Capital M Market
4.
4 Custom Union: countrries may deccide to trade e at zero
Reggulator, SEBI may not be aware
a of the ownership off these
duty among themselvess, however th hey maintain common
Funnds.
customs duty against rest
r of the w
world. An example is
Southern African
A Customs Union (SSACU) among gst South
►STAGES OF TRAD
DE INTEG
GRATION
N Africa, Leso
otho, Namibia
a, Botswana annd Swaziland.
Ind
dia and UK hav ve recently he
eld the virtuall meeting of the 5.
5 Common Market:M It is a Customs Un
nion with provvisions to
14tth Joint Econoomic and Trad de Committee e meeting. During facilitate fre
ee movementts of labour an
nd capital.
thiss interaction, both the countries have afffirmed their 6.
6 Economic Union: It iss a Commo on Market e extended
com
mmitment to signing of Fre ee Trade Agreeement. Let uss through further harmon nization of fisscal/monetaryy policies
und derstand som me important aspects
a of FTAA, which would be and sharedd executive, judicial
j and llegislative insstitutions
impportant from the Prelims perspective.
p among the member cou untries. Europ pean Union (EU) is an
UN
NDERSTANDIN
NG THE BASIC
CS OF TRADE
E INTEGRATIO
ON example.
IND
DIA AND FREE-TRADE AGR
REEMENTS

CIAL EDITION
N) for CSE 20020
42
INDIAN ECONOMY
►INTERNATIONAL MONETARY AND • The SBICAP, which is a subsidiary of the State Bank of India
has set up a Special Purpose Vehicle(SPV) known as Special
FINANCIAL COMMITTEE (IMFC)
Liquidity Scheme (SLS) Trust to manage this operation.
The Committee discusses matters of common concern
• The SLS Trust would raise money by issuing government
affecting the global economy and advises the IMF on the
guaranteed special securities to the RBI. The total amount
direction of its work. This year, due to the COVID-19
of value of such securities would be Rs 30,000 crores.
Outbreak, the meeting took place through video-conference.
• Under this scheme, certain eligible NBFCs and HFCs would
ABOUT INTERNATIONAL MONETARY FUND (IMF)
be issuing commercial papers to borrow money from SLS
• Both IMF and World Bank came into being after the trust. These commercial papers should have maturity
Bretton Woods Conference in 1944. These institutions period of less than 3 months.
were mainly set up in order to ensure global financial
• The borrowed money should be used by the NBFCs and
stability and to promote growth and development.
HFCs only for the purpose of repaying back their borrowed
• The role of the World Bank is to give loans to the poor and money. The money cannot be used by the NBFCs and HFCs
developing countries to promote growth and for any other purpose.
development. The IMF's main role is to give loans to the
member countries which are facing Balance of Payment
►BANKS BOARD BUREAU
(BoP) crisis.
The Banks Board Bureau (BBB) has recommended three
ABOUT INTERNATIONAL MONETARY AND FINANCE
candidates for the position of Managing Director and CEO in
COMMITTEE (IMFC)
Bank of Baroda, Canara Bank and Bank of India
• The highest decision-making body of the IMF is the Board
P. J. Nayak Committee recommended for the setting up of the
of Governors. It consists of one governor and one
Banks Board Bureau (BBB) to improve the governance of the
alternate governor for each member country.
PSBs. Accordingly, Banks Board Bureau was set up in 2016 as
• The governor is appointed by the member country and is
a non-statutory body to advise the Government on
usually the minister of finance or the head of the central
appointments of the chiefs of the PSBs. Role of BBB is limited
bank.
to recommendation of names. The appointment is finally
• The IMFC advises and reports to the IMF Board of approved by the Cabinet Committee on Appointments.
Governors on the supervision and management of the
OTHER FUNCTIONS
international monetary and financial system.
• Develop an appropriate methodology to enable the search
The IMFC has 24 members who are drawn from the pool of
and selection of high calibre wholetime Directors of PSBs.
189 governors. Its structure mirrors that of the IMF Executive
• Advise the Central Government on the formulation and
Board. The IMFC meets twice a year and discusses matters of
enforcement of a code of conduct and ethics.
common concern affecting the global economy and also
advises the IMF on the direction its work. • Build a data bank containing data relating to the
performance of PSBs and share the same with Central
Government.
BANKING • Help the banks in terms of developing business strategies

and capital raising plan.
►SPECIAL LIQUIDITY WINDOW FOR
NBFCs ►PAYMENTS INFRASTRUCTURE
As financial Intermediaries, the NBFCs and HFCs borrow DEVELOPMENT FUND (PIDF)
money through the issuance of short-term commercial The RBI has recently announced creation of a Payments
papers and then the borrowed money is given in the form of Infrastructure Development Fund (PIDF) in order to give fillip
loans. Now, the lockdown imposed due to COVID-19 has to cashless payments within India
adversely affected the cash flows to the NBFCs and HFCs. This
BACKGROUND
has made it difficult for them to fulfil their repayment
obligations on the commercial papers. The RBI's Payment Systems Vision 2021 with its core theme of
‘Empowering Exceptional (E)payment Experience’ aims at
Hence, in order to prevent the default by the NBFCs and HFCs
empowering every Indian with access to a bouquet of e-
and to improve their liquidity position, the Government has
payment options that is safe, secure, convenient, quick and
announced a special liquidity window worth Rs 30,000 crores.
affordable. However, one of the biggest constraints in
43
IN
NDIAN ECONOMY
pro
omotion of e-payments is the poo or penetration of contribution will be fro
om card issuuing banks a
and card
accceptance infrrastructure such as Po oint of Sale (PoS) networks operating in th
he country.
maachines. Accordingly, the Payment
P Systtems vision a
aims to • The PIDF will
w be manag
ged and adm
ministered byy Reserve
increase the pe enetration of acceptance iinfrastructure e to at Bank.
least six times off the present levels in the n
next 3 years.
DET
TAILS ABOUT
T PAYMENTS INFRASTRUC
CTURE ►RARE
► CU
URRENT ACCOUNT
A T SURPLU
US
DEV
VELOPMENT FUND (PIDF))
Recently,
R RBI published the statisticcs related to o India's
• It aims to en ncourage acqquirers to de ploy Points o
of Sale
Balance
B of Payment
P (BoP) account ffor the last quarter
(PoS)
( infrastrructure (both physical andd digital mod
des) in
(JJanuary-March 2020) of the financial yeear 2019-20. A According
tier-3
t to tier-6
6 centres and north eastern
n states.
to RBI, India's current acco
ount under Bo oP recorded a surplus
• The
T Reserve Bank will mak ke an initial ccontribution o
of ₹250 of
o $600 millio on (0.1% of GDP) in thee last Quarte er of the
crores
c to the
e PIDF coverin
ng half the ffund and rem maining financial
f year 2019-20 for the first time i n last 50 quarters.
REA
ASONS FOR THE
T CURRENT
T ACCOUNT S
SURPLUS DURING • Some of th he economists have highliighted that In
ndia may
JAN
N- MARCH 20
020 report Currrent Account Surplus of aaround $ 25 bbn in the
Decline in Trad de Deficit: The
T decline i n the International financial year
y 2020-21. Undoubted dly, Current Account
cru
ude oil prices and fall in th
he consumpt ion demand due to surplus (CAAS) benefits the Indian EEconomy. It leads to
eco
onomic slowdown has led to t decline in i mport bill. strengthening of Indian n Rupee (du ue to higherr foreign
inflows), im
mprovement in BoP and d accretion of forex
Inc
crease in Inviisibles:
reserves.
• The
T remittancces increased d by around 1 4% as compa
ared to
• However th
he current acccount surpluss should take place on
previous finan
ncial year.
account of positive facttors such as Increase in E
Export of
• Net services receipts
r also increased
i on account of inncrease Goods and d Services. The
T Higher exports from m Indian
in net earning
gs from comp puter service s on a year-o
on-year economy would lead d to creatio on of emp ployment
basis. opportunitiies, boost pro
oduction of Go
oods and servvices and
IS CURRENT
C ACCOUNT SURP
PLUS A REASO
ON FOR CHEE
ER hence leadss to higher GD
DP growth rattes.
FOR INDIAN ECONOMY?

CIAL EDITION
N) for CSE 20020
44
IN
NDIAN ECONOMY
STA
ANDING DEPOSIT FACILIT
TY (SDF)
UN
NDERSTANDIN
NG STANDING DEPOSIT FA
ACILITY (SDF
F) down
d the inteerest rate structure. This will also red
duce the
The
e SDF works similar
s to Rev
verse Repo. HHowever, SDF would Interest cost of
o the RBI.
be different from
m Reverse Rep
po in the follo
owing ways:
1. Under the SDDF route, the e RBI would not be requiired to
provide G-Seccs as collaterral to the Ban
nks. Hence, it would TAXAT
T TION AND
A F
FISCAL
enable
e RBI to
o absorb hug ge amount off liquidity fro
om the
economy
e with
hout G-Secs acting as collatteral. STREN
S NGTH
2. The
T SDF woulld be lower th
han Reverse R
Repo.
►NEED
► OF
O A FISC
CAL COU
UNCIL
3. Reverse Repoo exercise is carried
c out ass per the disccretion
of
o the RBI de epending upo on market co onditions. Ho
owever, The
T Government needs to borrow moree amount of m money in
the
t SDF wou uld enable th he Banks to keep their ssurplus order
o to pro
ovide fiscal stimulus an d revive the e Indian
funds
f with the RBI at their own discretio
on. Economy.
E Howwever, this would
w lead to increase in tthe Fiscal
Deficit
D and Public Debt, which can have an adverse im mpact on
Thee introduction of the sta anding depossit facility re
equired
the medium-term GDP growth g rates of Indian E Economy.
am
mendment to the RBI Act. In this regarrd, the Finan nce Act
Apart
A from th
hat, this can also lead to downgrade iin India's
(20
018) introduceed as part off Budget am ended the R RBI Act,
Sovereign
S Cre
edit Ratings. Due
D to such feears, the Govvernment
193
34 to enable e the RBI to t use the new tool of SDF.
has
h restraineed from ann nouncing higgher Fiscal Stimulus
Subbsequently, th
he liquidity management
m fframework ad dopted
measures.
m
by the RBI in Feb
F 2020 has decided to o use SDF in India.
However, the RBI
R has so faar not notifi ed the operational Hence
H fiscal stimulus
s meaasures should d be accompanied by
dettails. strong
s Fiscal Consolidatio
on roadmap after the e economic
recovery.
r Thiss would ensurre that the higgher Fiscal De
eficit and
NEED TO INTRO
ODUCE SDF IN
N INDIA
Public
P Debt do not have an adverse im mpact on Econ nomy. At
In order to cou unter the eco onomic slow down, the R RBI has the same time, it would se end a strongg signal to the e market
conntinuously been reducing the
t Repo Rate e. However, th he risk-
that the Gov vernment is committed tto the path of Fiscal
aveerse banks ha ave been reluuctant to lendd loans. Instea ad, the Discipline.
D
liqu
uidity availed by Banks from the RBI is in turn parked back
One
O of the best ways to ensure
e such a fiscal conssolidation
witth the Central bank through the Reverse e Repo route. On an
post
p economiic recovery iss through thee setting up of Fiscal
aveerage, the bannks have park ked around R Rs 8 lakh crore es with
Council.
C
thee RBI through Reverse Repo o route. The l ack of availabbility of
adeequate amount of G-Secs would
w make itt difficult for tthe RBI WHAT
W IS FISCAL COUNCIL?
to continue withw the Rev verse Repo route. Hence, the A fiscal counccil is an independent and d non-partisan
n agency
intrroduction of SDF
S would he elp the RBI in b
better manag gement which
w is set up
u to publicly y assesses th
he governmen nt’s fiscal
of the
t present liqquidity situatiion. performance
p against its stated objecctives. Some e of the
Apaart from that, the introduction of SDF w
would enable tthe RBI functions
f thatt can be perfo
ormed by Fiscaal Council include:
to absorb excess liquidity ata lower rate es and hencee bring

CIAL EDITION
N) for CSE 20020
45
INDIAN ECONOMY
• Producing independent forecasts related to GDP growth, ►DIRECT MONETISATION OF
tax buoyancy, inflation rate
GOVERNMENT’S DEFICIT
• Review the government’s forecasts and assumptions
related to tax collections, Fiscal Deficit, GDP Growth etc. The lockdown imposed due to COVID-19 has further
accentuated the slowdown in the economy. In this regard,
• Monitoring governments’ fiscal performance including
some of the economists have pointed out that the
adherence to fiscal rules
Government must resort to direct monetization of its deficit
• Analysing the long-term sustainability of public finances to revive the Indian Economy.
The FRBM Review committee headed by N.K Singh and D.K. WHAT IS DIRECT MONETIZATION OF GOVERNMENT'S
Srivastava Committee on Fiscal Statistics have proposed to DEFICIT?
set up independent Fiscal Council in India.
• Presently, the Government borrows money from Market
by issuing various Financial instruments such as T-Bills and
►FISCAL EMPOWERMENT OF THE Dated Securities. Similarly, in recent times, the RBI has
STATES been carrying out the Open Market Operations (OMOs) in
order to indirectly lend money to the Government.
CURRENT CONSTITUTIONAL AND LEGAL FRAMEWORK
However, in case of Direct Monetization, the Government
• Constitutional Framework: Public Health is under the State borrows money directly from the RBI by using T-Bills and
List. The Centre has powers only over preventing the Dated Securities.
spread of diseases from one State to another (Entry 29 of
• Excess Liquidity in Economy: The Banks are sitting on
the Concurrent List).
surplus liquidity of around Rs 8 lakh crores. However, they
• Legal Framework: The Disaster Management Act, 2005 are reluctant to lend due to fear that the loans may turn
empowers the Centre to take necessary actions for the into NPAs due to prevailing economic conditions. That is
prevention and mitigation of disaster. The Epidemic why, a major chunk of the Government's support under
Diseases Act,1897 enables the States to take necessary the Atma Nirbhar Bharat Package is in form of Credit
actions to prevent the outbreak or spread of dangerous Guarantee on the loans. The Credit guarantee given by the
epidemic diseases. It limits the Centre’s role to inspecting Government is expected to nudge the Banks to kick start
ships in ports and detaining persons. credit creation and improve the Investment rates.
PROBLEMS WITH THE CURRENT FRAMEWORK ο Hence, Direct Monetization should be used only when
• The Parliament has enacted the Disaster Management Act, Atma Nirbhar Bharat Package fails to revive the Indian
2005 by invoking entry 23 in the concurrent list i.e. ‘Social Economy.
security and social insurance, employment and ο Poor Monetary Policy Transmission: The Interest rates
unemployment’ even though all aspects of crisis on the loans has not reduced in spite of reduction in
management cannot be said to be covered by this entry. policy rates by the RBI due to poor monetary policy
This is so because disaster includes natural calamities, transmission. The Government and the RBI has to fix
health related disasters (epidemics), industrial disasters this problem before contemplating on Direct
and disasters caused by hostile elements such as Monetization.
terrorists. Some of the states have also passed their own
laws to deal with the disasters.
►GDP-LINKED BONDS
• Hence, to avoid this confusion, the Second Administrative
reforms commission had recommended that there should Government can raise finances for the economic package
be a separate entry of "Management of Disasters and without affecting the macro-economic stability. These
Emergencies, natural or manmade" in the concurrent list. innovative mechanisms include:
• The Centre has invoked Disaster Management Act, 2005 • Issuance of GDP-linked bonds
(DM Act) to impose a blanket lockdown throughout India. • Monetisation of Non-core Assets of PSUs
However, even before the DM Act was invoked, several • Tapping into Excessive Liquidity of PSUs
State Governments had used their powers under the
ISSUANCE OF GDP-LINKED BONDS
Epidemic Diseases Act, 1897 (ED Act) to deal with the
Governments typically issue bonds with fixed Interest rates.
Covid-19 outbreak. Although public order and public
However, the GDP linked Bonds are the floating rate bonds
health are subjects that lie with the States as per the
issued by the countries to borrow money from the market.
Indian Constitution, the Centre has used the DM Act to
The rate of Interest is linked to GDP growth of a country.
effectively bypass States and assume complete control.
46
INDIAN ECONOMY
Higher the GDP growth, higher would be the Interest rate and Steady Income
vice-versa. Almost around 5
• Haulage As of now, only
crore passengers
MONETISATION OF NON-CORE ASSETS OF PSUS Charge 5% of routes are
could not be given
• Share of opened up for
What is Asset Monetisation? The assets of the PSUs could confirmed tickets in
Revenue of private sector.
be categorized broadly into various types (a) Land and 2019-20.
Private sector
Buildings (b) Operational assets such as pipelines, mobile
towers etc. (c) Financial assets such as equity shares, debt Reduce Indian
securities etc. Normally, it is observed that some of the Railway’s Private sector
Paves way for
reliance on participation would
assets of the PSUs such as land and buildings are not higher Private
borrowed funds expand the
efficiently used and more importantly, such assets may be sector
for investment passenger capacity
considered as non-core assets as they may not be integral participation in
in Expanding and hence benefits
to the efficient working of such PSUs. Indian Railways
Railway passengers.
Hence, Asset Monetisation refers to the selling of the non- Network
core and sub-optimally utilized assets of the central public
enterprises.
►AGRICULTURE INFRASTRUCTURE
TAPPING INTO EXCESS LIQUIDITY OF PSUS
FUND
The outstanding cash and bank deposits of the 15 identified
is around Rs 65,000 crores which is much higher than their Agriculture Marketing Infrastructure Fund was announced as
operational requirements. The PSUs must be allowed to part of Aatma Nirbhar Bharat Package. The purpose is to
retain cash and bank deposits to meet their operational improve the overall marketing Infrastructure.
expenses for next 6 months. The excess cash and bank • The Government has unveiled Rs 1 lakh crore worth Agri
deposits should be transferred to the Government in the Infrastructure Fund to improve the farm-gate
form of dividend payments. infrastructure such as collection centres, storage, cold
chain infrastructure etc.
• This fund would provide necessary funding support to
INFRASTRUCTURE Primary Agricultural Cooperative Societies, Farmers
Producer Organizations, Agriculture entrepreneurs, Start-
►PPP IN INDIAN RAILWAYS ups, etc. to invest in post-harvest management
infrastructure.
The Ministry of Railways recently invited Request for
Qualifications (RFQ) for operation of passenger trains by • All loans under this financing facility will have interest
private operators in PPP mode on 109 routes with 151 subvention of 3% per annum up to a limit of Rs. 2 crores.
modern trains. Such a move by the Ministry comes after the • Credit guarantee coverage will be available for eligible
successful launch of India's first corporate Train "Tejas borrowers from this financing facility under Credit
Express", which is operating on Lucknow-Delhi and Guarantee Fund Trust for Micro and Small Enterprises
Ahmedabad-Mumbai routes (CGTMSE) scheme for a loan up to Rs. 2 crores. The fee for
this coverage will be paid by the Government.
BENEFITS FOR THE STAKEHOLDERS
• In case of FPOs the credit guarantee may be availed from
INDIAN PRIVATE SECTOR PASSENGERS
the facility created under FPO promotion scheme of
RAILWAY
Department of Agriculture, Cooperation & Farmers
Independence Welfare (DACFW).
No Political
and autonomy to
interference in Greater Choice to
decide on the
Fixing of the passengers
Passenger Fares
fares on such ►ANIMAL HUSBANDRY
trains.
INFRASTRUCTURE DEVELOPMENT
Private sector
Decrease in
operates would be FUND
operating cost
forced to attract
due to higher Spoke to earn DAIRY INDUSTRY IN INDIA
passengers and
revenue higher Profits • India is the largest producer of Milk in the world with an
hence provide
collections from annual milk production of around 180 MT.
world-class
Private sector
amenities.
47
IN
NDIAN ECONOMY
• The
T per-capitta availability
y of milk hass increased tto 375 • 2 years moratorium periiod for princippal loan amou
unt.
grams/day
g ass against the global
g average
e of 300 gram
ms/day. • Credit Guarrantee Covera
age would be up to 25% off Credit
• Most of the milk in the Country is p
produced by small, facility of bo
orrower
marginal farrmers and landless labborers and hence
considered
c vital to promote inclu
usive growth
h and
development
d in India. ►RAISE
► PROGRA
P AM
In order to incentivise private secto r investmen nt, the The
T Ministry of
o Power hass recently lauunched Retroffit of Air-
Gov vernment haas launched Rs 15,000 crrores worth A Animal conditioning
c to
t improve Indoor Air Q Quality for Sa
afety and
Husbandry Infrrastructure Development
D Fund. Undeer this Efficiency”
E (R
RAISE) nation
nal program mme with tthe twin
fun
nd, financial incentives would
w also be
e given for p
private objective
o of enhancing Energy
E Efficieency and Im
mproving
secctor investme
ent in certain
n niche prod ducts such a
as Milk Indoor quality y.
powwder, Ghee, butter,
b Cheese
e etc. ABOUT
A RAISE
E PROGRAM
Elig
gible Beneficiaries: Farm mer Producerr Organizatio
ons • Air conditio
oners are anticipated to co
onsume 45 pe
ercent of
(FPOs), MSMEs, Section 8 Companies, Privvate Companies Indian hou useholds’ powwer demand by 2050, in ncreasing
andd individual entrepreneu urs. (Section 8 Companies expenditure for consumers and co ontributing tto global
include Compan nies set up un
nder Section 8 of Companies warming. AtA the same, Poor
P air qualitty has been a concern
Actt for charitable and non-pro
ofit objectivess). in India for quite some tiime.
BEN
NEFITS AVAIL
LABLE FOR TH
HE BENEFICIA
ARIES • Hence, Energy Efficien
ncy Services Limited (EE
ESL) has
• 90%
9 of the inv
vestment to be
b provided in
n the form of loan launched “R
Retrofit of Air--conditioningg to improve In
ndoor air
by the Schedu
uled Banks. quality forr Safety and d Efficiency””. It is laun nched in
partnership
p with USAID'ss MAITREE Pro ogram
• 3%
3 Interest su
ubvention to the
t beneficiarries.
STOCK
S K EXCH
HANGE AND
D
The
T Departme ent of Investm
ment and Pub lic Asset management
(DIPAM) has recently decid
ded to releasse the Second
d tranche
of
o Bharat Bond ETF.
BOND
B M
MARK
KET WHAT
W IS EXCH
HANGE TRAD
DED FUND (ETTF)?
►BHARAT
T BOND ETF
E
• ETF is a fund that is created by pooling ttogether asseets and listed in the
e stock exchaanges are sim
milar to like sh
hares and
then
t dividing
g this accumuulated asset i nto individua
al units can be trad ded like ordinary shares. In
n nature, the ETFs are
that
t are traded on the sttock exchange e. The value of the index funds because the ey comprise of shares of different
ETF comes froom the value of the underrlying assets ((shares companies.
of
o stock, bon nds, foreign currency, etcc.). These ETTFs are

CIAL EDITION
N) for CSE 20020
48
IN
NDIAN ECONOMY
• A bond ETF in
nvests in a ba
asket of bond
ds in the underlying enable social enterprise
es such as NG
GOs to raise ccapital to
index. It can invest
i in the government,
g corporate, orr public meet their social cause.
sector
s unit boonds. • SEBI had appointed a ta
ask force und
der the Chairrmanship
of Ishaat Hussain
H to re
ecommend th he various m
modalities
related to the working off Social Stock Exchanges.
►SOCIAL STOCK
S EXCHANG
E GES
• In the Union
n Budget 202
20-21, the Fin
nance Ministe
er had
proposed to establish Social
S Stock Exchange (S
SSE) to
WH
HAT IS SOCIAL STOCK EXC
CHANGE (SSE))?
• India needs huge amount of capita l for social sector economic recession
r lead
ding to huge selloffs of the
e shares.
expenditure
e s
such as Educa
ation, Health, Sanitation, Housing During such times of un ncertainty, thee normal ten
ndency of
etc.
e Usually, thet investors are reluctan
nt to invest in
n these the investors is to invest in safe instru
uments such aas Gold.
sectors
s due to poor financial returrns. Howeve er, the • Accordinglyy, according to the World d Gold Coun ncil, gold-
investment in these secctors has hu uge socio-eco onomic backed Excchange Traded Funds (ETFFs) attracted a around $
returns in teerms of imprrovement of standard of living, 23 billion in the first qu
uarter of 20220.This is higgher ever
poverty alleviation, womenn empowerme ent etc. investmentt in gold ETFs in a single qu
uarter since 20
016.
• Hence, in ord
der to increase investmentt in the social sector WHAT
W ARE GO
OLD-BASED EXCHANGE
E TR
RADED FUND
DS?
expenditure,
e the Governm ment has prooposed Social Stock
• What is Goold-based ETF Fs? The Gold- based ETFs a are those
Exchange (SSE). It enables various socie
eties, trusts, n
not-for-
ETFs whichh invest in Go old. The comp pany issuing the gold
profit comp panies to raiser capital for underrtaking
ETFs investts its money in physical G Gold and con nverts its
expenditure
e in social secto
ors.
investmentt in different units
u of paperr-based ETF. N
Normally,
• For example, Brazil's Socio-envirronmental Impact 1 unit of gold ETF in paper form represents 1 gm of
Exchange (BV VSA) was the first
f SSE. Som
me of the othe
er SSEs physical gold. So, when a person buyys 10 units off ETF, it is
across
a the woorld include- UK Social Sto
ock Exchange,, South akin to buying of 10 gmss of gold.
Africa's
A SASIX
X, Canada's Soocial Venture C
Connexion.
• Please notee that the pe
erson does no ot get custod
dy of the
physical go
old on buying the ETF. He gets only thee units of
►GOLD-BA
ASED ETF
F ETF which represents
r physical Goldd. These ETFss can be
bought or sold in the sto
ock exchangee.
• The
T outbreak
k of COVID-1
19 has sparkked fears of global

CIAL EDITION
N) for CSE 20020
49
INDIAN ECONOMY
• Redemption of Gold-based ETFs: Only some of the ETFs • The Government of India had announced the launch of
provide the option of redemption of Gold based ETF in 7.75 percent Savings (Taxable) Bonds, 2018 to enable
terms of physical Gold for the retail Investor. However, for resident citizens to invest in a taxable bond, without any
large Investors, the Redemption in terms of physical Gold monetary ceiling.
is allowed only after their investment exceeds a certain • These Bonds provided higher interest returns of 7.75% per
threshold. This threshold varies across ETF and is usually annum as compared to other savings schemes. For
above 1 kg (1000 Units). example, the public provident fund offers 7.1 per cent and
the senior citizen saving scheme offers 7.4 per cent rate of
interest. Bank fixed deposits for senior citizens offer
►CONSOL BONDS
around 6.5 per cent. Hence, fall in the Interest rates made
• Recently, the Union Finance Minister has announced Rs these bonds an attractive investment option.
1.70 Lakh Crore relief package under Pradhan Mantri
PROBABLE REASON FOR CESSATION OF RBI SAVINGS
Garib Kalyan Yojana. However, the fiscal stimulus
BONDS
provided by the Government is hardly around 1% of India's
Since 2018 RBI has consistently reduced the Repo Rate in
GDP which is insufficient.
order to increase the consumption and investment
• In this regard, some of the economists have highlighted expenditure within the economy. Hence, the interest rate of
that, we need to look at war-time methods of raising
these bonds are much higher than the prevailing interest
finances. One such innovative method of financing is
rates within the economy. This in turn led to two problems:
CONSOL Bonds.
1. Incentivised the people to save more money through
UNDERSTANDING CONSOL BONDS
investment in such bonds and hence disincentivised
• The CONSOL Bonds are the perpetual interest-bearing consumption expenditure.
bonds which are issued by the Governments to raise
2. Higher Interest Burden on the Government.
finances during war-like situations. Being perpetual bonds,
these bonds do not have maturity period. The investor is
paid only interest on such bonds. ►SURETY BONDS
• Since the Bonds do not have maturity period, the Recently, the Union Ministry of Road Transport and Highways
Government is not under any obligation to pay back the had requested the Insurance regulator, IRDAI to examine the
money. Usually, the Government repays back its possibility of insurance companies offering Surety Bonds to
borrowings, when its financial position is strong enough. ensure completion of the highway projects by the
For example, the British Government had issued CONSOL Contractors.
Bond in 1917 to finance its first world war. The Bonds
WHAT ARE SURETY BONDS?
carried an interest rate of 5%. In 2014 (almost a century
later), the British Government repaid 10% of the total • The Surety Bond is form of contractual agreement
between 3 parties –
outstanding CONSOL Bond debt.
1. Principal (Contractor)
BENEFITS
• Investors get annual interest payments through 2. Obligee (Government) and
investment in CONSOL Bonds 3. Surety company.
• Risk-Free Investment (Issued and guaranteed by the • As part of such an agreement, the surety company gives
Governments) an undertaking that the Principal (contractor) would
complete the project as per the timeline keeping in mind
• Enables the Citizens to contribute financially to the cause
all the specifications laid down by the Government.
of a country. This would give them a sense of participation
and promote unity within the country. • If the Contractor fails to complete the project on time or if
the contractor does not fulfil any requirement laid down
by the Government, then Surety company comes into
►RBI SAVINGS BONDS picture and is required to compensate the Obligee
• Recently, the Government issued a notification stating that (Government) for the loss.
7.75% Savings (Taxable) Bonds, 2018, also known as RBI • Presently, these surety Bonds are commonly used in
bonds or government bonds, shall cease for subscription countries such as US, UK, Australia etc.
from 28th May 2020. • Now, we are trying to create an enabling framework
which would enable the Insurance companies to act as
50
INDIAN ECONOMY
surety companies.
►OPEC PLUS
INTERNATIONAL • Recently, price of crude oil in US touched very low. In this
respect, OPEC plus has decided to cut production of crude
INSTITUTIONS oil.
• OPEC Plus is an alliance of OPEC member countries and
►GOVERNMENT BORROW $ 500 certain 10 non-OPEC crude oil exporting countries formed
to accelerate the stabilisation of global oil markets through
MILLION FROM AIIB voluntary production adjustments.
The Indian Government and the Asian Infrastructure • It came into existence by Declaration of Cooperation
Investment Bank (AIIB) signed a US$ 500 million “COVID-19 signed in December 2016
Emergency Response and Health Systems Preparedness
• Non-Opec Members of OPEC Plus:
Project” . This is the first ever health sector support from the
1. Bahrain 2. Azerbaijan
Bank to India
3. Brunei 4. Kazakhstan
NEW ASIAN
5. Malaysia 6. Mexico
CRITERIA DEVELOPMENT INFRASTRUCTURE
BANK INVESTMENT BANK 7. Oman 8. Russia
9. Sudan 10. South Sudan
BRICS Countries ABOUT OPEC
through Fortaleza China-led multilateral
Establishment • Organization of the Petroleum Exporting Countries (OPEC)
declaration in Bank in 2016
2014 is a permanent, intergovernmental Organization, created
at the Baghdad Conference on September 10–14, 1960, by
Around 80 members Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
Number of BRICS member
Approved: Additional • It aims to coordinate and unify petroleum policies of
Members countries
22 members member countries and ensure stabilisation of oil markets
in order to secure an efficient, economic and regular
All members of IBRD supply of petroleum to consumers, a steady income to
All UN Members or Asian Development producers and a fair return on capital for those investing
(Voting rights of Bank in petroleum industry.
Membership
BRICS countries (Non-regional
open to? • Current Members: Iran, Kuwait, Saudi Arabia, Venezuela,
shall not reduce Members from
Iraq, Libya, UAE, Algeria, Nigeria, Gabon, Angola, Equatorial
below 55% outside Asia can also
Guinea and Congo.
join)
• Members of OPEC are: OPEC Secretariat is located in
Total $ 100 bn. $ 100 bn Vienna, Austria.
The Initial capital
Authorised
of $ 50 bn has
been contributed
MISCELLENOUS
Capital
by BRICS countries
equally.
►KISAN SABHA APP
The lockdown imposed due to COVID-19 has made it difficult
Voting depends upon for the farmers to sell their produce and buy various inputs
Same contribution the share capital such as seeds, fertilizer etc. Accordingly, recently, KISAN
by BRICS provided. Sabha App was launched to streamline the supply chain
Voting countries-- > all Countries management and benefit the farmers.
Weightage countries given highest
ABOUT KISAN SABHA APP
equal voting rights:
weightage (20%) (26.64%); • Connects the farmers, transporters, Service providers (like
(7.6%); Russia (6%) pesticides/ fertilizer/ dealers, cold store and warehouse
owner), mandi dealers, customers (like big retail outlets,
51
INDIAN ECONOMY
online stores, institutional buyers) and other related Central Bank can enable the usage of CBDC for certain
entities. selected users - either the people or only the Financial
• Acts as a single stop for every entity related to agriculture- Institutions.
a farmer who needs better price for the crops or mandi • Further, the CBDC is also referred as a programmable
dealer who wants to connect to more farmers or truckers money because it can be programmed only for certain
who invariably go empty from the mandis. selected transactions or they may be enabled in certain
• Developed by CSIR-Central Road Research Institute (CSIR- specific regions of the country only.
CRRI). • Lastly, just like cryptocurrencies, the CBDC works on
Blockchain technology
►CHAMPIONS PORTAL FOR MSMEs • Experiments of CBDC in other Countries:
• Recently, the Union Ministry of MSME has launched ο Tunisia became one of the first countries in the world to
CHAMPIONS portal aimed at assisting Indian MSMEs issue a block chain based national currency called
march into big league as National and Global CHAMPIONS. eDinar also known as Digicash and BitDinar.
• CHAMPIONS stands for Creation and Harmonious ο Ecuador, which officially banned Bitcoin in 2014,
Application of Modern Processes for Increasing the Output introduced SISTEMA de Dinero Electronico, its own
and National Strength. digital currency.
• The portal is basically for making the smaller units big by ο Venezuela has also launched its own oil- based
solving their grievances, encouraging, supporting, helping cryptocurrency to circumvent US sanctions that had
and handholding. It is a real one-stop- shop solution of adversely impacted the economy.
MSME Ministry. • Issuance of CBDC in India: The Committee to study issues
related to Virtual Currencies (2019) headed by Subhash
Chandra Garg has recommended that we need to have an
►CENTRAL BANK DIGITAL
open mind regarding the introduction of an official digital
CURRENCY/ CHINA LAUNCHES NEW currency in India. It recommended that, if required, a
DIGITAL CURRENCY Committee may be setup to examine and develop an
appropriate model of digital currency in India. If such a
Central Banks are quite worried that the launch of
digital currency is issued, RBI should be the regulator.
cryptocurrencies by large number of private sector entities
would pose a threat to the existing paper-based currencies • The Draft National Blockchain Strategy tabled by the
and may have an adverse impact on the monetary stability. National Institute for Smart Governance has also called for
Accordingly, a number of Central banks across the World India to develop a Central Bank Digital Rupee.
have been experimenting with the idea of issuing their own
digital Currency i.e. Central Bank Digital Currency (CBDC). ►IRAN ADOPTS NEW CURRENCY
Such an idea has been supported by both IMF and Bank of
"TOMAN"
International Settlement.
The Iranian Parliament has recently passed a bill to introduce
China has finally decided to experiment CBDC in a pilot
new currency "Toman" in order to replace its existing
mode. The Chinese Central Bank has recently decided to test
currency Rial. The Value of the new currency "Toman" has
its CDBC named as "Digital Currency Electronic Payment
also been recalibrated wherein 1 Toman would be equal to
(DCEP)" in four Chinese cities. Subsequently, it wants to carry
10,000 Rials. The Rial will remain legal tender alongside the
out a trial run of its CDBC during the 2022 Winter Olympics in
Toman during a two-year transition period.
Beijing.
REDENOMINATION
WHAT IS CENTRAL BANK DIGITAL CURRENCY (CBDC)?
• The Redenomination is the process of replacing the
• Firstly, it is a digital currency backed by the Central bank of
existing currencies with new currencies of different face
a country. Just like currency notes issued by the Central
value. It is basically undertaken in the event of
Bank, the CDBC is a legal tender and accepted for the
hyperinflation. Now, during the hyperinflation, the
payment of various transactions within a country.
excessive increase in the prices of goods and services
• Secondly, unlike the cryptocurrencies, the CBDC is backed
leads to decrease in the purchasing power of the
by the Central Bank and hence enjoy more amount of
currency. For example, in 2008, Zimbabwe experienced an
stability and less volatility.
unprecedented hyperinflation of 79,600,000,000%.
• Thirdly, it is considered as "programmable money". The
52
INDIAN ECONOMY
• The problem is solved by replacing the existing low-value domestic migrant workers who had escaped rural poverty
currency notes with new currency notes of higher face by finding work in cities are being forced back into rural
value. In case of Zimbabwe, the Government issued poverty again. Hence, the COVID-19 may accentuate
currency note with one hundred trillion dollars economic inequalities within South Asia.
denomination.
ISSUE OF NEW CURRENCY TOMAN IN IRAN ►“MIGRATION AND DEVELOPMENT
• The value of Iran’s currency has been steadily declining BRIEF” REPORT
since the Islamic Revolution in 1979. The decline in value of
The World Bank has recently released a report titled as
currency has accelerated in recent years fuelled by U.S.
“Migration and Development Brief”. This report is prepared
sanctions. The value of Iran’s currency has fallen by
by Global Knowledge Partnership on Migration and
roughly 60% since 2015. For example, the Iranian Rial has
Development (KNOMAD), an initiative of World Bank. This
fallen from 1 dollar = 71 Rials (1970s) to 1 dollar =
report provides updates on global trends in migration and
42,000 Rials (presently). Apart from that, since the Islamic
remittances. Further, the report provides a prognosis of how
Revolution in 1979, Iran has experienced inflation on a
the events related to COVID-19 might affect global trends in
regular basis. There have been only four financial years
international
with single-digit inflation.
HIGHLIGHTS OF THE REPORT
• In response, Iran has long been contemplating to
redenominate the currency since number of years and Impact on COVID-19 on International Migrants
finally now, it has decided to introduce new currency • The economic disruption caused due to COVID-19 has
Toman. The value of Toman would be equal to 10,000 adversely affected the income levels of the migrants across
Rials. the world. Migrant remittances provide an economic
lifeline to poor households in many countries. Hence, a
reduction in remittance flows could increase poverty and
REPORTS & INDICES reduce households’ access to healthcare services.
• Further, migrants face the risk of contagion and also the
►SOUTH ASIA ECONOMIC FOCUS possible loss of employment, wages, and health insurance
REPORT coverage. The crisis could also exacerbate xenophobic,
discriminatory treatment of migrants, which calls for
World Bank has released its biannual report titled "South Asia
greater vigilance against such practices.
Economic Focus". This report has highlighted that countries in
• The Remittances as a share of GDP tend to be largest in
the South Asian Region (Including India) could see sharp
poor countries as compared to rich countries. In 2020, the
slump in the economic activity due to the outbreak of COVID-
remittance flows to low and middle‐income countries are
19.
expected to drop by around 20 percent to $445 billion
HIGHLIGHTS ABOUT THE REPORT
from $554 billion in 2019. This is projected to the largest
• The economic crisis caused due to COVID-19 is unique in fall in the global remittances in the recent history.
number of ways.
• The low- and middle- income countries have been
ο Firstly, the economic crisis is on account of both witnessing decline in the foreign investment since the
demand and supply side disruptions. outbreak of COVID-19. Hence, even though, remittances
ο Secondly, the disruption has been seen in almost all have declined, these countries could see higher
sectors of economy including Manufacturing and dependence on remittances as source of external
Services. financing.
ο Thirdly, panic buying of food commodities may • The World Bank closely monitors three Sustainable
jeopardize food security. Development Goal (SDG) indicators for which it is a
• South Asia will likely experience the worst economic custodian: increasing the volume of remittances as a
performance of the last 40 years. The regional GDP growth percentage of GDP, reducing remittance costs and
will fall to a range between 1.8 and 2.8 percent in 2020, reducing recruitment costs paid by migrant workers. The
down from 6.3 percent projected six months ago. In a progress on all three indicators is projected to slowdown
worst-case scenario, the whole region would experience a in 2020.
contraction of GDP.
• The poor people have higher likelihood of losing work, and
53
INDIAN ECONOMY
►ENERGY TRANSITION INDEX (ETI) ►WORLD UNCERTAINTY INDEX

• India has improved its positions by 2 places to rank 74th The World Uncertainty Index is a new measure that tracks
on a Global ‘Energy Transition Index (ETI)’ 2020 published uncertainty across the globe by text mining the country
by the World Economic Forum (WEF). reports of the Economist Intelligence Unit. The index is
• The Energy transition refers to shift in the energy system available for 143 countries.
from fossil-based fuels towards renewable energy. The ETI It is published by IMF.
measures the extent of energy transition taking place
across 115 countries, including India.
►WORLD PANDEMIC UNCERTAINTY
HIGHLIGHTS OF REPORT
INDEX
• Of the 115 countries monitored, 94 countries have
• It is a sub-index of World Uncertainty Index to measure
improved their composite ETI score over the past six years.
economic uncertainty related to pandemics and other
These nations represent more than 70% of the global
disease outbreaks. According to the Index, the uncertainty
population and 70% of global CO2 emissions from fuel
during the times of Coronavirus has been far higher than
combustion.
past pandemics.
• Sweden leads the rankings table for the third consecutive
• It is published by IMF.
year, followed by Switzerland and Finland. France and the
United Kingdom are the only G20 countries in the top 10.
►GOODS TRADE BAROMETER
►EXPORT PREPAREDNESS INDEX • It is a composite leading indicator designed to signal of
current and near-term trade developments in world
2020
merchandise trade. The overall Goods Trade Barometer
• Niti Aayog in partnership with the Institute of index combines information on several component indices
Competitiveness has prepared Export Preparedness Index. representing trade-related variables including export
• It examines the export preparedness and performance of orders, international air freight (IATA), container shipping,
Indian states. It also intends to identify challenges and automobile sales and production, electronic components
opportunities, enhance the effectiveness of government and agricultural raw materials. The Goods Trade
policies and encourage a facilitative regulatory framework. Barometer anticipates changes in the trajectory of world
• The report ranks states on 4 parameters: merchandise trade volume relative to recent trends by
three to four months on average, so for example the value
1. Policy: Comprehensive trade policy providing strategic
of the index for January would provide an indication of
direction for exports and imports
trade conditions in April-May.
2. Business Ecosystem: An efficient business ecosystem can
• It is published by World Trade Organisation.
help states attract investments and create an enabling
infrastructure for individuals to initiate start-ups.
3. Export ecosystem: Aims to assess the business ►IMPORTANT COMMITTEES IN NEWS
environment, which is specific to exports
4. Export performance: This is the only output-based pillar Expert Committee set up by RBI to
and examines the reach of export footprints of States and K V Kamath decide on the parameters of one
1.
Union Territories. Committee time loan restructuring due to
FINDINGS COVID-19 pandemic
• In the coastal states category: Gujarat emerged as the best

D B Pathak RBI Committee for Analysis of QR
performing state followed by Maharashtra and Tamil 2.
Committee code
Nadu.
• In the landlocked states category: Rajasthan was the best
Committee to evaluate issues
performing state.
related to Infant Mortality Rate,
Jaya Jaitly
• In the Himalayan States category: Uttarakhand 3. Total Fertility Rate, Sex Ratio at
Committee
• In the City State category: Delhi Birth and Child Sex Ratio. Set up by
Ministry of Women and Child
54
INDIAN ECONOMY
Development Expert Committee on Non-personal

data governance.
Committee set up by RBI to look Non Personal Data: Any data which
P K Mohanty into ownership structure and does not contain personally
4.
Committee corporate governance of Indian identifiable information. Thus, no
private banks.
Kris individual or living person can be
12. Gopalakrishnan identified by looking at such data.
• Set up with the aim to facilitate
Committee Major Recommendation:
interaction, cooperation and
• Sharing of non-personal data to
coordination amongst public
help Indian companies and
sector science communication
government.
institutions.
• Data businesses which is a new
Science • Set up by Ministry of Science and
business category
5. Communication Technology.
Forum • It would be served by a
Secretariat at the National
Council for Science & Technology
Communication (NCSTC),
Department of Science &
Technology.
Committee set up by Union Health

Rajesh Bhushan
6. Ministry to reform India's drug
Committee
regulatory system.
It is a body set up by Government

of India to boost rice exports. It has
Rice Export
been set up under the Agricultural
7. Promotion
and Processed Foods Export
Forum
Promotion Development Authority
(Apeda).
Expert Committee on Vaccine

V K Paul Administration to decide on the
8.
Committee modalities of procurement,
dissemination of COVID 19 vaccine
Expert Committee on overhaul of

P Ramgopal Rao
9. Defence Research and Defence
Committee
Organisation (DRDO).
It is a committee formed by
Dr K S Reddy National Human Rights
10.
Committee Commission to assess the impact of
COVID-19 on human rights.
Supreme Court appointed

Niranjan Bhatt
11. committee to draft model law on
Committee
mediation
55
SECTION 3
E NVIRONMENT,
E COLOGY &
B IODIVERSITY
IMPORTANT SPECIES
exacerbating the probability of having problematic interactions
with humans.
►INDIAN GAUR ABOUT GAUR
IN NEWS The gaur, also called the Indian bison, is native to South and
The first population estimation exercise of the Indian gaur Southeast Asia and has been listed as Vulnerable on the
carried out in the Nilgiris Forest Division has revealed that more IUCN Red List since 1986. The global population has been
than an estimated 2,000 Indian gaurs inhabit the entire division. estimated at maximum 21,000 mature individuals by 2016. It
The exercise has also revealed that the majority of the animals in declined by more than 70% during the last three generations,
“conflict-prone” areas in the division live perilously close to and is extinct in Sri Lanka and probably also in Bangladesh. In
human habitations due to habitat loss and fragmentation, well-protected areas, it is stable and increasing.
56
ENVIR
RONMENT, ECOLOGY
Y & BIODIVE
ERSITY
• Distributio
on: It is distrib
buted through hout the counntry from
the Himalaayas and to the t south in India. It is ssympatric
with other otter specie es in the Weestern Ghats and the
northeast India. Smooth h-coated otterrs are found in areas
where fres shwater is plentiful,
p pre eferring shalllow and
placid watters— wetlan nds and seassonal swamp ps, rivers,
lakes, and rice
r paddies. Where
W they aare the only species of
otter, they may be foun nd in almost any suitable e habitat,
but where they are sy ympatric with h other speccies, they
avoid smalller streams an nd canals in fa
favour of large
er bodies
of water. Although
A they are often fo und in saltwa ater near
the coast, especially on n smaller islaands, they rrequire a
nearby source of freshw water.
• Protection
n status: Liste
ed as Vulneraable on the IU
UCN Red
Gaur and itts distributio
on
List.
►F
FISHING CAT
C ►OLIVE
► RIDLEY
R TU
URTLES
Ressearchers havee found preseence of Fishing
ng cat and Eu
urasian Lakhs
L of Olive e Ridley sea turtles
t have ccome ashore for mass
Ottter in Odisha’ss Chilika Lake.. Both the speecies are suppo osed to nesting
n at the six-kilometre-long Rushikuulya beach off Odisha’s
enjoy conservatiion measures of the high est accord in n India Ganjam
G districct.The olive rid
dley sea turtle also known ccommonly
acccording to the country’s lawss, much like thee tiger and eleephant. as
a the Pacific ridley
r sea turrtle.
• Range: It is a globally end
dangered spe
ecies that is e
elusive • Range: It iss found in warrm and tropiccal waters, priimarily in
and
a found inn very few places in soutth and soutth-east the Pacificc and Indian n Oceans, bu ut also in th he warm
Asia.
A waters of thet Atlantic Ocean. Thuss,olive ridley tturtle has
• Speciality:
S U
Unlike other cats which hunt on g ground, a circumtropical distrib bution, livingg in tropical and warm
fishing
f cat hunts in wateer. It has speccialised featurres like waters of thhe Pacific and
d Indian Oceaans from India a, Arabia,
partially web bbed feet and water-resisstant fur that helps Japan, and Micronesia south
s to soutthern Africa, A Australia,
it to thrive in wetlands. and New Ze ealand.
• The
T flat-head
ded cat of soouth-east Asiaa is the onlyy other • Olive ridley
y turtles are best
b known ffor their beha
aviour of
feline
f that shares
s simila
ar features. This makes them synchronizeed nesting in mass numbeers, termed arrribadas.
unique among all 39 extannt cat species. Females re eturn to the e same beacch from whe ere they
hatched, too lay their egggs in nests w
which they lab
boriously
• The
T fishing ca
at is nocturna
al and apart ffrom fish also
o preys
dig with the
eir hind flippe
ers.
on
o frogs, cru ustaceans, snnakes, birds, and scaveng ges on
carcasses
c of larger animalss. • In the India
an Ocean, thhe majority off olive ridleys nest in
• Protection sttatus: The fisshing cat is lissted as Endanngered two or three large group
ps near Gahirrmatha in Odisha.
on
o the IUCN N Red List. The
T Conventio on on International • The coast of Odisha in India is o one the large
est mass
Trade
T in Endaangered Species (CITES) listts the fishing cat on nesting site
e for the oliv
ve ridley, alon
ng with the c
coasts of
Appendix
A II part of Artiicle IV of CIT TES, which governs Mexico and d Costa Rica.
international trade in this species. In In ndia, the fishing cat CONSERVATIO
C ON STATUS
is included in Schedule I of the e Indian W Wildlife IUCN: Vulnera able; CITES: It is listed in
n Appendix I of CITES;
(Protection)
( Act, 1972 and thereb by protected from
India: enlistedd in schedulee 1 of Wildlifee protection A
Act, 1972
hunting. which
w giver this species hig
ghest level of p
protection in India.
THREATS
T
►S
SMOOTH COATED OTTER
• Predators of eggs and Hatchlings: The include vultures,
• Range: Occurs in most off the Indian subcontinen nt and crabs, racco
oons, coyotess, iguanas, and
d snakes.
Southeast
S A
Asia (disjunct population iin Iraq). Fur of this
• Anthropog genic: Mortality associatedd with boat ccollisions,
species
s is sm
moother and shorter than that of othe er otter
and inciden
ntal takes in fisheries
f espeecially by traw
wlers, gill
species.
s Desscribed as fish specialistt, they are strong
nets, pot fishing etc. To
o reduce accid
dental killing in India,
swimmers
s an
nd hunt in groups.
the Orissa government has made it mandatory ffor trawls

CIAL EDITION
N) for CSE 20020
57
ENVIR
RONMENT, ECOLOGY
Y & BIODIVE
ERSITY
to
t use Turtle Excluder Devices (TED Ds), a net sp pecially
designed
d with an exit cover which al lows the turrtles to
escape
e while retaining the catch
►H
HIMALAY
YAN IBEX
• A recent studdy by the Zooological Surveey of India (ZSI) has
proved that Himalayan
H Ibex is a distin ct species fro
om the
Siberian
S Ibex..
• Siberian
S Ibexx is a species of wild goat aand is distribu
uted in
diverse
d habitats, rangin ng from co old deserts, rocky
Arrangement of Sun Mo
oon and Earth
h during an e
eclipse
outcrops,
o ste
eep terrain, high-land fl ats and mo ountain
(Image)
ridges to low mountains an nd foothills.
THE
T MOON ORBITS
O EARTH
H; BOTH SWIN
NG AROUND THE
• In India, the
e Ibex is disstributed ma
ainly in the trans-
Himalayan ranges
r of thee Union Ter ritories of L
Ladakh SUN.
S IN A PER
RFECT UNIVERSE, WE’D SEEE TOTALITY EVERY
and
a Jammu and Kashmir and Himacchal Pradesh h up to MONTH.
M BUT WE DON’T, AND
A HERE’S W
WHY
the
t river Sutle
ej. • Both the Sun and Moon vary in anggular size thrroughout
• The
T genetic analysis conducted by ZSI is genetically the year (S
Sun) or month (Moon). Th
he Moon's variation is
different
d from
m all other ran
nges of Siberia
an Ibex. more prono
ounced.
• IUCN status: Least Concerrned • First, the apparent
a size of the Sun vvaries during the year
because Ea
arth’s orbit is an ellipse, no
ot a perfect ciircle. Our
planet is closest to the
e Sun (periheelion) in earlyy January
IM
MPORT
TANT EVEN
NTS and farthesst (aphelion) in early July.. So the Sun appears
about 3% larger in January than in
n July (not th
hat you’d
►A
ANNULAR
R SOLAR ECLIPSE
E
notice), which means att times it’s haarder for the Moon to
Thee first solar ecllipse of 2020 took
t place on JJune 21. This was be completely cover the Sun
n and create a total eclipse
e.
an annular solarr eclipse, durin ng which the MMoon was not able to
• More dram
matic is the change in tthe Moon’s a
apparent
covver the Sun com mpletely, whichh caused a rin
ng of fire to appear in
the
e sky. diameter due to its ellip
ptical orbit aro
ound Earth. W
When the
Moon is clo
osest to Earth (perigee), itss apparent dia
ameter is
SOLAR ECLIPSE IS A RESULT OF COSMIC C
COINCIDENC
CE
14% largerr than when it’s farthest (apogee). Wh
hen near
• The
T Sun’s dia ameter is abo out 400 timess that of the Moon.
perigee, the Moon can easily cover the entire solar disk
The
T Sun is alsso (on average) about 400 times fartherr away.
and create a total solar eclipse. But aat apogee the
e Moon is
As
A a result, th he two bodiess appear almo ost exactly thee same
angular
a size in the sky, about
a ½°. Th is truly rema arkable too small to
t cover all of
o the Sun's brilliant face.. At mid-
coincidence
c i what givess us total so
is olar eclipses. If the eclipse an annulus (ring
g) of sunlightt surrounds tthe lunar
Moon were slightly
s smalle er or orbited a little farther away silhouette, resulting in an annular ecliipse.
from
f Earth, itt would neverr completely ccover the sola ar disk. A NUMBER OF FACTORS DETERMINE
D W
WHETHER THE
E MOON
If the Moon were w a little larger or orbbited a bit clooser to COMPLETELY
C Y COVERS THE
E SUN (A TOTTAL SOLAR EC
CLIPSE)
Earth, it wou uld block mu uch of the so olar corona during
OR
O DOESN’T (AN
( ANNULA
AR ECLIPSE)
totality,
t and eclipses
e would dn’t be nearlyy as spectaculaar.
• The variabiility in the ap
pparent size o
of the Sun an
nd Moon
• Of
O course the e Moon doessn’t totally ec lipse the Sunn every
doesn’t pre
eclude a montthly solar ecliipse. What do
oes is the
month, if it did,
d seeing tootality wouldnn’t be as mucch of a
tilt of the Moon’s
M orbit, which is abo
out 5° to the plane of
thrill.
t And ev
ven when the e lunar disk encroaches o on the
Sun,
S it doesn
n’t always commpletely cove er the solar d
disk. In Earth’s orb
bit around th
he Sun or, eq
quivalently, tthe Sun’s
fact,
f at new Moon — the only lunar p phase when a solar apparent path
p around the
t sky as seeen from Earrth. (This
eclipse
e can occur, the Moon
M usuall y misses thhe Sun path is called the eclip
ptic, for reaso
ons that will become
altogether.
a G
Given all the variables, it’ss almost surprising obvious in a moment.) More
M often thaan not, the ne
ew Moon
that
t we see eclipses at all. passes abo
ove or below
w the Sun, an
nd the lunarr shadow
misses Eartth completely
y.

CIAL EDITION
N) for CSE 20020
58
ENVIR
RONMENT, ECOLOGY
Y & BIODIVE
ERSITY
• But every 173.3 days (rou
ughly every 6 months), th
he new
Moon passess through one
e of two crosssover points (nodes)
where
w the Mo
oon’s tilted orbit
o intersectts the ecliptic. Here,
at
a last, a sola
ar eclipse is possible, tho
ough the Moo
on can
pass through
h a node witthout the ecl ipse being to
otal or
annular
a — a partial
p eclipse
e can occur insstead.
• Does this lim
mit eclipses to
o twice a yea
ar?
ο Not quite, because the
e Moon doe
esn’t have to move
exactly through the middle
m of a node to cau
use an
eclipse. It can
c be off by a little, which
h means it’s po
ossible
to have two solar eclipses within a m
month of each
h other,
though botth will be parttials.
The
e complicatiions doesn’tt end there.. The nodes slowly
shift (precess) westward,
w which means th
he months in which
eclipses take pla
ace slowly cha
ange as the yyears pass. Th
his also
affe
ects the type of eclipse tha
at occurs: currrently long an
nnulars
are
e more likely in January, lon
ng totals in Jully.
Finally, after 6,5
585.32 days (18 years, 11 days, 8 hourrs), the
enttire eclipse cy
ycle repeats. This
T is known as the Saross cycle.
Wh
hen two eclipses are separated by a pe
eriod of one Saros,
the
e Sun, Earth, and
a Moon re
eturn to appro
oximately the
e same Three
T kinds shadows
s gen
nerated due tto varying alignment
rela
ative geomettry, and a ne
early identica
al eclipse will occur of the three
e planetary b
bodies
(tho
ough the eclip
pse path will be
b shifted we
est by eight ho
ours — • Total Solarr Eclipses: A total
t solar ec lipse occurs w
when the
one
e third of Eartth’s rotation). Moon com mpletely covers the Sun, as seen from m Earth.
Totality during such an eclipse can only be seen n from a
NO
OTHING LAST
TS FOREVER
limited area
a, shaped likee a narrow b elt, usually about 160
• The
T cosmic coincidence
c that gives us total solar e
eclipses km (100 mi) wide and 16,000
1 km (1 0,000 mi) lon ng. Areas
isn’t permane
ent. The Moon is ever so sslowly moving
g away outside this track may be able to seee a partial e eclipse of
from
f our planet
p at rate of abou t 1.5 inche
es (3.8 the Sun.
centimeters)
c per year. As it recedes, it s average apparent • Partial Sola
ar Eclipse: A partial solar eeclipse happe
ens when
diameter
d shriinks. Eventually, the Moon
n will never be
e large the Moon only
o partially covers
c the dissk of the Sun.
enough
e to completely cove
er the Sun, an
nd total eclipsses will • Annular So olar Eclipsess: An annularr solar eclipsse occurs
no longer be visible from Earth’s
E surface
e. when the Moon
M appearss smaller thann the Sun as it passes
• And
A when miight this come to pass? Th
he calculation
n is not centrally accross the solar disk and a b
bright ring, or annulus,
precise — the
ere are many
y unknowns ssuch as wheth
her the of sunlight remains visibble during the eclipse.
lunar retreat will continue

e at a constan
nt rate and w
whether
the
t solar diam
meter will rem
main stable ovver a long period of ►AMPHAN
► N CYCLON
NE
time.
t Still, ab
bout a billion years from n
now, give or take a • The storm system
s in the Bay of Bengaal, Amphan, d
developed
few
f hundred
d million yea
ars, the surrface of Eartth will into a supe
er cyclone and made a laandfall along the West
experience
e itts final total eclipse of the Sun. A
Annular Bengal-Bang
gladesh coast.
eclipses
e will continue
c to occur,
o though
h the percenttage of • Cyclones arre caused by atmosphericc disturbancess around
the
t solar su
urface hidden
n by the M
Moon will gra
adually a low-presssure area distinguished
d by swift an nd often
decrease.
d destructive air circulatio
on. They are usually accompanied
by violent storms
s and baad weather.
• So,
S when you stand in the
t lunar sha
adow watchin
ng the
• There are six main requirements for ttropical cyclog
genesis:
Moon pass between Earrth and the Sun, revel in the
knowledge that you are
e witnessing one of the
e most ο sufficiently warm sea surface temp
peratures;
unusual and spectacular

s ev
vents in the ccosmos. ο atmosph
heric instabilitty;

CIAL EDITION
N) for CSE 20020
59
ENVIRONMENT, ECOLOGY & BIODIVERSITY
ο high humidity in the lower to middle levels of the • As an RSMC, the IMD names the cyclones developing over
troposphere; the north Indian Ocean, including the Bay of Bengal and
ο enough Coriolis force to sustain a low pressure centre; Arabian Sea, after following a standard procedure. The
IMD is also mandated to issue advisories to 12 other
ο a pre-existing low level focus or disturbance;
countries in the region on the development of cyclones
ο low vertical wind shear.
and storms.
(But keep in mind that these are just necessary FEW RULES OF NOMENCLATURE
conditions and not sufficient.)
• There is no retirement of tropical cyclone names in this
Cyclones are given many names in different regions of the basin as the list of names is only scheduled to be used
world – They are known as: once before a new list of names is drawn up.
• Typhoons in the China Sea and Pacific Ocean; • Should a named tropical cyclone move into the basin from
• Hurricanes in the West Indian islands in the Caribbean Sea the Western Pacific, it will retain its original name.
and Atlantic Ocean. • WMO maintains rotating lists of names which are
WHEN DOES A “DEPRESSION” BECOMES A “CYCLONE”? appropriate for each Tropical Cyclone basin. The Panel
• The World Meteorological Organisation uses the term Member’s names are listed alphabetically country
'Tropical Cyclone’ to cover weather systems in which winds wise.
exceed ‘Gale Force’ (minimum of 34 knots or 63 kph). A • The names will be used sequentially column wise.
gale is a strong wind, typically used as a descriptor in • The first name will start from the first row of column one
nautical contexts. and continue sequentially to the last row in the column
• Further categories are determined similarly by wind thirteen.
speeds. • The names of tropical cyclones over the north Indian
Type of Wind Speed in Wind Speed Ocean will not be repeated, once used it will cease to be
Disturbances Km/h in Knots used again. The name should be new. It should not be
there in the already existing list of any of the RSMCs
Low Pressure Less than 31 Less than 17
worldwide including RSMC New Delhi.
Depression 31-49 17-27 • The name of a tropical cyclone from south China Sea
which crosses Thailand and emerge into the Bay of
Deep Depression 49-61 27-33
Bengal as a Tropical cyclone will not be changed.
Cyclonic Storm 61-88 33-47
FREQUENCY OF CYCLONES
Severe Cyclonic • It’s increasing. If you see in 2019, there were 3 Very Severe
88-117 47-63
Storm Cyclonic Storms and 2 Extremely Severe Cyclonic Storm.
More than • This year, just before the beginning of monsoon we have
Super Cyclone More than 221
120 Super cyclone (highest in intensity in last 20 years).
REASON OF INCREASED FREQUENCY: WARMING OF BAY
So basically the category is determined by the speed of
OF BENGAL
the surface winds which the cyclone generate.
Temperature plays a big role in over-all process. Cyclones
By the time it made landfall in West Bengal, Amphan toned
gain their energy from the heat and moisture generated from
down into a category 4 Extremely Severe Cyclonic (ESC) storm
warm ocean surfaces. Higher than normal temperatures in
with wind speed of 165-175 kmph and gusting to 195 kmph.
the Bay of Bengal (BoB) may be whetting ‘super cyclones’ and
HOW ARE THEY NAMED?
the lockdown, indirectly, may have played a role.
• Cyclones that form in every ocean basin across the world
WHAT COULD BE THE REASONS BEHIND THE WARMING OF
are named by the Regional Specialised Meteorological
BAY?
Centres (RSMCs) and Tropical Cyclone Warning Centres
• Long term climate change
(TCWCs). There are six RSMCs in the world, including the
India Meteorological Department (IMD), and five TCWCs. • Lockdown:
• The RSMC New Delhi Tropical Cyclone Centre is ο Reduced particulate matter emissions during the lockdown
responsible to name the tropical cyclones that have meant fewer aerosols, such as black carbon, that are
formed over the Bay of Bengal and the Arabian Sea when known to reflect sunlight and heat away from the surface.
they have reached the relevant intensity.
60
ο Every year, increased particulate pollution from the Indo- • But on some occasions, heat wave may also develop over
Gangetic plains is transported towards the BoB and this any region in situ under the favourable conditions.
also influences the formation of clouds over the ocean. HEALTH IMPACTS OF HEAT WAVES
The health impacts of Heat Waves typically involve
►HEAT WAVES dehydration, heat cramps, heat exhaustion (fatigue,
Severe heat waves were witnessed in the last week of May. weakness, cramps etc) and/or heat stroke (high body
temperature with seizures, coma; fatal). The signs and
HEAT WAVE
symptoms are as follows:
• A Heat Wave is a period of abnormally high temperatures,
• Heat Cramps: Ederna (swelling) and Syncope (Fainting)
more than the normal maximum temperature that occurs
generally accompanied by fever below 39 i.e.102*F.
during the summer season (mostly March and June and
sometime extending to July) in the North-Western parts of • Heat Exhaustion: Fatigue, weakness, dizziness, headache,
India. nausea, vomiting, muscle cramps and sweating.
• The extreme temperatures and resultant atmospheric • Heat Stoke: Body temperatures of 40*C i.e. 104*F or more
conditions adversely affect people living in these regions along with delirium, seizures or coma. This is a potential
as they cause physiological stress, sometimes resulting in fatal condition.
death.
The Indian Meteorological Department (IMD) has given ►LOCUST ATTACK
the following criteria for Heat Waves : Over the past several weeks, locust attacks emanating from the
Heat wave is considered if maximum temperature of a desert area in Pakistan have struck parts of Rajasthan and
station reaches at least 40°C or more for Plains, 37°C or more Gujarat, causing heavy damage to standing crop.
for coastal stations and at least 30°C or more for Hilly ABOUT LOCUSTS
regions. Following criteria are used to declare heat wave:
• Locusts are a collection of certain species of short-horned
a) Based on Departure from Normal grasshoppers in the family Acrididae that have a
ο Heat Wave: Departure from normal is 4.5°C to 6.4°C swarming phase.
ο Severe Heat Wave: Departure from normal is ≥ 6.4°C • Swarm behaviour, or swarming, is a collective behaviour
b) Based on Actual Maximum Temperature (for plains only) exhibited by animals, of similar size which aggregate
together, perhaps milling about the same spot or perhaps
ο Heat Wave: When actual maximum temperature ≥
moving en masse or migrating in some direction.
45°C
Normal situation: These grasshoppers are innocuous, their
ο Severe Heat Wave: When actual maximum
numbers are low, and they do not pose a major economic
temperature ≥ 47°C
threat to agriculture.
To declare heat wave, the above criteria should be met at
Attack situation: However, under suitable conditions of
least in 2 stations in a Meteorological subdivision for at
drought followed by rapid vegetation growth, serotonin in
least two consecutive days and it will be declared on the
their brains triggers a dramatic set of changes: they start to
second day.
breed abundantly, becoming sociable and nomadic (loosely
WHAT ARE FAVOURABLE CONDITIONS FOR HEAT WAVE? described as migratory) when their populations become
• Transportation / Prevalence of hot dry air over a region dense enough.
(There should be a region of warm dry air and appropriate Is the difference in environmental condition also
flow pattern for transporting hot air over the region). reflected on their morphology? Yes, differences in
• Absence of moisture in the upper atmosphere (As the morphology and development are seen.
presence of moisture restricts the temperature rise). HOW DO THESE LOCUSTS HARM AGRICULTURE?
• The sky should be practically cloudless (To allow maximum • The swarms eat leaves, flowers, fruits, seeds, bark and
insulation over the region). growing points, and also destroy plants by their sheer
• Large amplitude anti-cyclonic flow over the area. weight as they descend on them in massive numbers.
• Heat waves generally develop over Northwest India and • Desert locusts can have about 40 million to 80 million
spread gradually eastwards & southwards but not locust adults in each square kilometre of a swarm and
westwards (since the prevailing winds during the season travel up to 150 kilometres a day, according to the FAO.
are westerly to north westerly).
61
• There is an exponential increase in locust numbers with • In many cases, bioremediation is less expensive and more
every new generation of breeding and a swarm the size of sustainable than other remediation alternatives.
one square kilometre, containing about 40 million locusts, • The most important principle of bioremediation is that
eats the same amount of food in one day as about 35,000 microorganisms can be used to destroy hazardous
people. contaminants or transform them into less harmful
HOW MANY SPECIES OF LOCUSTS ARE NATIVE TO INDIA? forms. Bioremediation relies on stimulating the growth
Only four species of locusts are found in India: of certain microbes that use contaminants like oil,
solvents, and pesticides as a source of food and energy.
1. Desert locust
These microbes consume the contaminants, converting
2. Migratory locust them into small amounts of water and harmless gases like
3. Bombay Locust carbon dioxide.
4. Tree locust • Effective bioremediation needs a combination of the
• The desert locust is regarded as the most important in right temperature, nutrients, and food; otherwise, it
India as well as internationally. may take much longer for the clean-up of contaminants. If
conditions are not favourable for bioremediation, they can
• The attack of 2019-2020 has been caused mainly due to
be improved by adding “amendments” to the environment,
Desert locust.
such as molasses, vegetable oil or simply air.
HOW DOES INDIA PLANS TO CONTROL THESE ATTACKS?
There are two ways in which bioremediation is carried
• India has a locust control and research scheme that is
out:
being implemented through the Locust Warning
• In-Situ:
Organisation (LWO) under Ministry of Agriculture.
o It is done at the contamination site itself. It can be
• The LWO’s responsibility is monitoring and control of the
described as the process whereby contaminants are
locust situation in Scheduled Desert Areas, mainly in
biologically degraded under natural conditions to either
Rajasthan and Gujarat, and partly in Punjab and Haryana.
carbon dioxide and water or an attenuated transformation
• India is most at risk of a swarm invasion just before the
product. The benefit of in situ treatment is that it prevents
onset of the monsoon. The swarms usually originate in the
the spread of contamination during the displacement and
Arabian Peninsula and the Horn of Africa.
transport of the contaminated material.
• What are the situations which exacerbate these
• Ex-Situ:
attacks? The task is more difficult because of political
o Ex-situ refers to treatment that occurs after the
instability in some countries. In Somalia, for example, the
contaminated waste has been removed and taken to a
FAO says that aerial spraying has been ruled out in areas
treatment area. If we take the example of contaminated
not controlled by the government. The civil war in Yemen
soil, the soil may be removed and transported to an area
may also have contributed to the outbreak.
where the bioremediation methodologies may be
employed.
►BIOREMEDIATION
o Ex-situ bioremediation may be necessary if the climate is
• A team of The Energy and Research Institute (TERI) and an too cold for microbe activity, or the soil is too dense for
accredited private agency have begun assessing the impact on nutrients to be spread evenly. The main advantage of ex-
the environment around the Baghjan natural gas well that situ bioremediation is that it helps to contain and control
caught fire after a blowout. the bioremediation products, as well as making the area
• The well in eastern Assam’s Tinsukia district adjoins the that was contaminated available for use.
sensitive Maguri-Motapung wetland and is close to the
Dibru-Saikhowa National Park that houses some wild
►EARTHQUAKE AND EARTHQUAKE
horses. It underwent a blowout – uncontrolled escape of gas
at tremendous velocity.
PREDICTION
WHAT IS BIO-REMEDIATION? Eleven minor earthquakes have been recorded in and around
Delhi since May, the most powerful of which happened to be of
• Bioremediation deals with the use of living organisms
magnitude 3.4. These recent earthquakes have triggered
such as microorganisms like bacteria and fungi to
discussions on the possibility of increased seismicity around
remove contaminants, pollutants and toxins from soil and
Delhi, and fears of an impending big earthquake sometime soon.
water. It can be used to clean up environmental problems
None of these apprehensions have any scientific basis. In this
like an oil spill or contaminated groundwater.
62
regards, it becomes important to cover Earthquake and why the • Identifying some kind of geophysical trend or pattern
predictions regarding earthquakes are so difficult. in seismicity that might precede a large earthquake.
• Earthquake : An earthquake is what happens when two • The most studied earthquake faults appear to have distinct
blocks of the earth suddenly slip past one another. segments. Since continuous plate motions cause the strain
• Fault plane: The surface where they slip is called the fault to accumulate steadily, seismic activity on a given segment
or fault plane. should be dominated by earthquakes of similar
characteristics that recur at somewhat regular intervals.
• Epicentre and Hypocentre: The location below the earth’s
surface where the earthquake starts is called the hypo- • However, it is unlikely they will be able to predict
center, and the location directly above it on the surface of earthquake in near future. On any particular fault,
the earth is called the epicenter. scientists know there will be another earthquake
sometime in the future, but they have no way of telling
• Foreshock: Sometimes an earthquake has foreshocks.
when it will happen.
These are smaller earthquakes that happen in the same
place as the larger earthquake that follows. Scientists can’t
tell that an earthquake is a foreshock until the larger ►RED SNOW
earthquake happens. • In the month of February, photographs of “red snow” around
• Mainshock: The largest, main earthquake is called the Ukraine’s Vernadsky Research Base, off the coast of
mainshock. Mainshocks always have aftershocks that Antarctica’s northernmost peninsula, have gone viral. “Red
follow. These are smaller earthquakes that occur snow” or “watermelon” is a phenomenon that has been known
afterwards in the same place as the mainshock. since ancient times. Now, it raises concerns about climate
Depending on the size of the mainshock, aftershocks can change.
continue for weeks, months, and even years after the • It is a phenomenon caused by Chlamydomonasnivalis, a
mainshock! species of green algae containing a secondary red
EARTHQUAKE PREDICTION carotenoid pigment (astaxanthin) in addition to chlorophyll
• It is about predicting the earthquakes occurrence with to keep itself warm ..
respect to time, location, and magnitude of future • Unlike most species of fresh-water algae, it is cryophilic
earthquakes (cold-loving) and thrives in freezing water
• Prediction is different from earthquake warning systems, • The red pigmentation on snow reduces albedo and
which upon detection of an earthquake, provide a real- increases melting of glacial ice
time warning of seconds to neighbouring regions that • While the melt is good for the microbes that need the
might be affected. So before we jump into prediction, it is liquid water to survive and thrive, it’s bad for glaciers that
important to note that Earthquake prediction is an are already melting from a myriad of other causes.
immature science—it has not yet led to a successful
prediction of an earthquake from first physical principles.
►BLACK CARBON LEVEL
RESEARCH INTO METHODS OF PREDICTION THEREFORE
FOCUS ON EMPIRICAL ANALYSIS, WITH TWO GENERAL It has been reported that Black Carbon concentration near the
APPROACHES Gangotri glacier rose 400 times in summer due to forest fires and
stubble burning from agriculture waste. According to Wadia
• Either identifying distinctive forerunner to
institute of Himalayan Geology (WIHG), this also triggered glacial
earthquakes
melt.
ο For example: Animal Behaviour -> In cases where
India is the second largest contributor of black carbon in the
animals display unusual behaviour some tens of
world.
seconds prior to a quake, it has been suggested they
are responding to the P-wave. WHAT IS BLACK CARBON?
ο For Example: Radon-> Most rock contains small • Black Carbon is produced both naturally and by human
amounts of gases like radon that can be isotopically activities as a result of the incomplete combustion of
distinguished from the normal atmospheric gases. fossil fuels, biofuels, and biomass. It is black in colour as
There are reports of spikes in the concentrations of its particles strongly absorb sunlight and give soot its black
such gases prior to a major earthquake; this has been colour.
attributed to release due to pre-seismic stress or
fracturing of the rock.
63
• Black Carbon (BC) has recently emerged as a major livelihoods, for example by disrupting monsoons, which
contributor to global climate change, possibly second only are critical for agriculture in large parts of Asia and Africa.
to CO2 as the main driver of change.
• Primary sources include emissions from diesel engines, ►IMPACT OF AEROSOL ON CLIMATE
cook stoves, wood burning and forest fires.
CHANGE
DIFFERENCE BETWEEN CARBON DIOXIDE AND BLACK
• Atmospheric aerosols are tiny solid/liquid/mixed particles
CARBON
suspended in the air originating from natural or
• Reducing CO2 emissions is essential to avert the worst anthropogenic sources. With a typical lifetime of days to
impacts of future climate change, but CO2 has such a long weeks in the troposphere and about a year in the
atmospheric lifetime that it will take several decades stratosphere, aerosol size ranges from a few nanometers
for CO2 concentrations to begin to stabilize after to several tens of micrometers.
emissions reductions begin.
• Fundamentally, aerosol particles absorb and scatter
• In contrast, BC remains in the atmosphere for only a incoming solar radiation modifying the global and regional
few weeks, so cutting its emissions would immediately radiative budget.
reduce the rate of warming, particularly in those areas
• Non-absorbing aerosols like sulfate, nitrate, and sea
which have witnessed fast changes in the level of Black
spray scatter shortwave radiation back to space leading to
Carbon.
a net cooling of the climate system while absorbing
WHAT ARE THE IMPACTS OF BLACK CARBON? aerosols produce the opposite effect.
Climate impacts • Carbonaceous aerosols (black carbon, organic carbon)
• Black carbon is an important contributor to warming and mineral dust can absorb and scatter sunlight
because it is very effective at absorbing light and producing either warming or cooling effects determined by
heating its surroundings. Per unit of mass, black carbon aerosol properties and environmental conditions.
has a warming impact on climate that is 460-1,500 times Absorbing aerosols also affect climate when present in
stronger than CO2. surface snow by lowering surface albedo, yielding a
• When suspended in the atmosphere, black carbon positive radiative forcing, directly changing the melting of
contributes to warming by converting incoming solar snow and ice.
radiation to heat. It also influences cloud formation and • Although depending on the local emissions and transport
impacts regional circulation and rainfall patterns. processes, regionally, the anthropogenic aerosol radiative
• When deposited on ice and snow, black carbon and co- forcing can be either negative or positive; it is well
emitted particles reduce surface albedo (the ability to established that globally, the radiative effect of
reflect sunlight) and heat the surface. anthropogenic aerosols produces cooling of the planet.
Health impacts • Additionally, aerosol particles act as cloud condensation

nuclei (CCN) and ice nuclei (IN) and therefore have a
• Black carbon and its co-pollutants are key components of
significant impact on cloud properties. and
fine particulate matter (PM2.5) air pollution, the leading
precipitation. An increase in CCN forming aerosols in a
environmental cause of poor health and premature
cloudy region produces more, but smaller, cloud
deaths.
droplets reflecting more solar radiation to space
• Its small size allows them to penetrate into the deepest leading to a cooling of the Earth’s surface, known as the
regions of the lungs and facilitate the transport of toxic first indirect effect (cloud-albedo effect). Also, smaller
compounds into the bloodstream. droplets suppress collision coalescence requiring longer
Impacts on vegetation and ecosystems growth time to reach raindrop size, increasing the cloud
• Black carbon can affect the health of ecosystems in several albedo and enhancing the cooling effect, known as the
ways: cloud-lifetime effect or the second indirect effect. In
contrast, in a saturated and buoyant environment, an
 by depositing on plant leaves and increasing their
increase in CCN forming aerosols can invigorate the cloud
temperature,
through microphysical processes; however, there is
 dimming sunlight that reaches the earth, and
significant uncertainty in such impacts.
 modifying rainfall patterns.
• Furthermore, absorbing aerosols alter the air temperature
Changing rain patterns can have far-reaching causing an increase in lower level static stability inhibiting
consequences for both ecosystems and human convection leading to a decrease in cloud cover, known as
64
NATIONAL EVENTS/
the semi-direct effect. However, the net effect of absorbing
aerosols on precipitation depends on the vertical variation
of the particles and background conditions.
INITIATIVES
INTERNATIONAL ►MAHADAYI/MANDOVI RIVER DISPUTE
The dispute over Mahadayi River has resurfaced again and
INITIATIVES tensions have been rife between Goa and Karnataka. The bone of
contention is Kalasa-Banduri Nala project in the Mahadayi
►EU CLIMATE LAW basin. Only a section of the project is nearing completion, with
work on both reservoirs yet to be taken up owing to forest
• The draft climate law, unveiled in Brussels, would make a clearance.
legally binding commitment for the EU to reduce its
ABOUT THE RIVER
greenhouse-gas emissions to net zero by 2050.
• The Mandovi and the Zuari are the two primary rivers in
• It is not a goal which each country needs to achieve
the state of Goa.
individually but EU-wide goal
• Mandovi originates in the Western Ghats in the Belagavi
• Has it become binding? No, The climate law needs the district of Karnataka.
approval of the European Parliament and member states.
• Mandovi joins with the Zuari at a common creek at Cabo
Aguada, forming the Mormugao harbour. Panaji, the state
►THE ‘STATE OF INDIA’S BIRDS 2020’ capital and Old Goa, the former capital of Goa, are both
situated on the left bank of the Mandovi.
REPORT
• The Mandovi is important for Goa also because it is one of
• The first comprehensive assessment of range,
the few sweet-water sources at the state’s disposal.
abundance and conservation status of birds in India,
Most of Goa’s 11 rivers contain salt water and Mandovi
has underlined concerns about some bird species and ensures water security as well as being an important place
good news about a few others. to source fish for the state.
• The report was released during Conservation of KALASA-BANDURINALA PROJECT
Migratory Species CMS COP13, the international
• Goa is opposing Karnataka’s move to divert water from
conference held in Gandhinagar. tributaries of the river through the Kalasa-BhanduriNala
• The report was prepared as a partnership among 10 project towards the parched Malaprabha river basin.
organisations including the World Wildlife Fund, While the demand for drawing water from the Mahadayi is
Wildlife Institute of India and Nature Biodiversity four decades old, it was in 2002 that Karnataka drew up
Authority-India. the Kalasa-Bhanduri project to supply drinking water to
four parched districts (Belagavi, Dharwad, Gadag and
• Much of its data is based on citizen science —
Bagalkot) of north Karnataka.
information provided by birdwatchers through various
• While Goa fears the project will cause deficit of water,
platforms.
Karnataka claims the river is water-surplus. Goa has also
• The two key species which need mention: raised concerns over the potential ecological disaster that
ο House Sparrow: The report cites new analysis to show would be likely created if the tributaries are diverted.
that the house sparrow has been fairly stable overall THE CENTRE HAS NOTIFIED THE MAHADAYI WATER
during the past 25+ years. DISPUTE TRIBUNAL FINAL AWARD
ο Indian peafowl: The national bird since 1963, the • With this, Karnataka's longstanding demand is fulfilled and
species finds itself under the highest level of legal the state government can implement Mahadayi project to
protection, placed in Schedule I of the Wildlife provide drinking water to parched Hubballi-Dharwad and
(Protection) Act, 1972 and further amendments. Peafowl Belgaum region.
are spread across plains and hills of India, except in • As per the Inter-State Water Dispute Act, the Jal Shakthi
extremely dry or wet regions. The abundance trend is Ministry issued a notification with the subject to
that of a general increase, both long term and currently. outcome of the final verdict of the Supreme Court on the
water sharing dispute between Karnataka, Goa and
Maharashtra.
65
►NEW GUIDELINES FOR IMPORT OF • Formed 35,000 to 50,000 years ago, Lonar is the only
“fresh” impact structure in basalt on Earth, making it an
EXOTIC SPECIES
important analog for impact craters on the surface of the
The Ministry of Environment Forest and Climate Change Moon.
(MOEFCC) has issued an advisory saying people importing “exotic
live species” will have to make a voluntary disclosure. The move
comes as the outbreak of COVID-19 has raised global concern
►NAGAR VAN SCHEME
about illegal wildlife trade and zoonotic diseases. • The scheme aims to develop 200 urban forests on forest
HOW IS EXOTIC LIVE SPECIES DEFINED? land by adopting a collaborative approach, involving NGOs,
private sector partners and forest department.
• Two conditions needs to be satisfied:
• It is a scheme of Ministry of Environment, Forest and
ο A animal or plant species moved from their original
Climate Change.
range (location) to a new one.
• Parje Forest in Pune has been recognised as a best
ο The animals named under the Appendices I, II and III of
practice in Urban Forests.
the Convention of International Trade in Endangered
Species (CITES) of Wild Fauna and Flora.
 Several exotic species of birds, reptiles, small mammals, ►PROJECT LION
fishes and even some plants are imported. It is project announced by the Prime Minister on the occasion
HAS ANYTHING CHANGED REGARDING THE IMPORTS? of Independence Day. The project will involve conservation of
Asiatic Lion and its landscape in a holistic manner. It will
• For new “exotic live species”, the importer should obtain a
address issues of
no-objection certificate from the Chief Wildlife Warden
(CWLW) of the State. • Habitat development
• For existing species, stocks “shall be declared by the • Use of modern technologies in Lion management
owner/ holder (stock, as on 1 January 2020) to the Chief • Tackling diseases in Lions and associated species through
Wildlife Warden (CWLW) of the concerned State or UT”. research and veterinary care.
• Address human wildlife conflict and involve local
►ULSOOR LAKE communities in the vicinity of Lion landscape and create
livelihoods for them.
• Ulsoor Lake' or Halasuru Lake is one of the biggest lakes
in Bangalore, located on the eastern side of the city. It is a scheme of Ministry of Environment, Forest and Climate
Change.
• The southern bench of the National Green Tribunal (NGT)
has directed the constitution of a joint committee to take
samples of water from Bengaluru’s Ulsoor lake and ►PROJECT DOLPHIN
neighbouring areas to ascertain whether the lake is being
It is project announced by the Prime Minister on the occasion
polluted due to illegal activity and tasked the panel with
of Independence Day. The project will aim at conservation
also carrying out an analysis of the water in the lake.
and protection of Dolphins in the rivers and oceans of the
country.
►LONAR LAKE POLLUTION It is a scheme of Ministry of Environment, Forest and Climate
In early June 2020, a crater lake in west-central India promptly Change.
changed from green to pink. For now, the reason why remains a IT WILL INCORPORATE
mystery. Lonar Lake’s color shift occurred over the span of a few
• Use of modern technology in enumeration and anti-
days. The change is visible in this image pair.
poaching activities
• Lonar Lake (also known as Lonar Crater) is located in
• Engage fishermen and other river/ocean dependent
India’s west-central state of Maharashtra.
population; improvement of livelihoods of local
• The crater was initially thought to have a volcanic origin communities.
due to its location amid volcanic basalt of the Deccan
• Habitat improvement which will also help reduce pollution
Plateau.
in river bodies.
• Scientists in the 1970s, however, confirmed the presence
DOLPHINS IN INDIA
of Maskelynite—a naturally occurring glass that is only
1. Gangetic Dolphin
formed by extremely high-velocity impacts.
2. Indus Dolphin
66
3. Irrawaddy Dolphin (Found in Chilika Lake) ο Species extinctions due to livestock-related habitat
destruction (especially feed-cropping)
►SCHOOL NURSERY PROGRAM • Monocultures
• It aims at involving school students from the young age in • To support the livestock industry, a small group of
nursery and plantation operations. It aims to inculcate the “commodity” crops have taken up the majority of the
spirit of forest and environment in the mind of young world’s agricultural land. In the United States, corn, wheat,
students. rice, and soybeans are planted at unprecedented rate, yet
only a small percentage of these crops feed people.
• It is a scheme of Ministry of Environment, Forest and
Climate Change. • So you can understand that as the global demand for
cheap meat grows, the expansion of agricultural land is
putting more and pressure on our forests, rivers and
IMPORTANT CONCEPTS oceans, contributing to deforestation, soil erosion, marine

pollution zones and the global biodiversity crisis. This can
be addressed by diversification of protein source an
►ALTERNATIVE PROTEIN
using alternative proteins to fulfil our dietary needs
As the demand for animal protein is rising across the world, the
• Food security and agricultural income are among our
suppliers are increasingly adopting Intensive animal farming (or
nation’s major challenges in the coming years. We should
disparagingly known as “Factory farming”). This approach to
turn this crisis into an opportunity by stimulating research
animal rearing may be devastating to the environment.
and entrepreneurship in alternative proteins.
FIRST, WHAT IS FACTORY FARMING (OR INTENSIVE
ANIMAL FARMING)?
►DEEP SEA MICROPLASTICS
• Large-scale, industrial animal agriculture for meat, eggs,
Although microplastics are known to pervade the global seafloor,
and dairy — also called factory farming.
the processes that control their dispersal and concentration in
• It a style of animal husbandry designed to maximize
the deep sea remain largely unknown. A recent publication in
production, while minimizing costs.
“Science” has come out with a research which shows that
• To achieve this, agribusinesses keep livestock such as thermohaline-driven currents, which build extensive seafloor
cattle, poultry, and fish at high stocking densities, at large sediment accumulations, can control the distribution of
scale, and using modern machinery, biotechnology, and microplastics and create hotspots with the highest
global trade. concentrations reported for any seafloor setting (190 pieces per
SO HOW CAN IT CAUSE DAMAGE TO ENVIRONMENT? IT IS 50 grams).
JUST FARMING, RIGHT? (HAZARDS OF FACTORY FARMING) WHAT ARE MICRO PLASTICS?
• Uses vast tracts of land for raising Feed crops (which • Microplastics are very small pieces of plastic that pollute
could be used for human food crops), the environment.
• For Grazing (causing deforestation), • Microplastics are not a specific kind of plastic, but rather
• Quantities of water to raise those animals (watering the any type of plastic fragment that is less than 5 mm in
crops that farm animals eat, providing drinking water for length.
billions of animals each year, and cleaning away the filth in • Micro Plastics are of two kinds:
factory farms, transport trucks, and slaughterhouses, the
ο Primary microplastics are any plastic fragments or
animal agriculture industry has a huge impact on the
particles that are already 5.0 mm in size or less before
water supply) ,
entering the environment. These include microfibers
• Antibiotic use (Pollutes water bodies, affects Human from clothing, microbeads, and plastic pellets (also
Health by creating antibiotic resistant superbugs), known as nurdles).
• Air Pollution (Over 37 percent of methane emissions ο Secondary microplastics are microplastics that are
result from factory farming) , created from the degradation of larger plastic products
• Loss of Biodiversity once they enter the environment through natural
weathering processes.
ο Due to eutrophication, acidification, pesticides and
• Such sources of secondary microplastics include water and
herbicides
soda bottles, fishing nets, and plastic bags. Both types are
ο Worldwide reduction of genetic diversity of livestock recognized to persist in the environment at high levels,
and loss of traditional breeds particularly in aquatic and marine ecosystems
67
• Troubles with Microplastics: Owing to their small size, is a similar rise from 2010. But according to the experts, the data
microplastics can be ingested by organisms across all about the deaths of the Lions due to CDV disease have not been
trophic levels, enabling transfer of harmful toxic reported.
substances. Therefore, determining where microplastics CANINE DISTEMPER VIRUS (CDV)
accumulate and their availability for incorporation into the
• Canine distemper is a contagious and serious disease
food chain is fundamental to understanding threats to
caused by a virus.
globally important deep-seafloor ecosystems.
• Canine distemper virus is known mainly to cause a severe
• What causes these microbeads to spread:
infection in dogs respiratory, gastrointestinal, respiratory
ο Converging surface currents in oceanic gyres are and central nervous systems, as well as the conjunctival
responsible for the global distribution of plastics on the membranes of the eye.
ocean surface.
• A lion does not eat the entire prey at one go. In between,
ο These gyres effectively concentrate these lighter plastics
the dogs consume the kill and infect it with the CDV. Once
into the now-infamous “garbage patches”.
the lion returns to finish it off, its gets the deadly disease.
• What is interesting about that?
• The virus does not affect humans however they may be
ο Although being lighter, sea surface accumulations only
carriers.
account for ~1% of the estimated global marine plastic
budget. Most of the remaining 99% of plastic ends up in • The devastating link between the CDV and potential
the deep sea . epidemics has been known since 1994, when within the
ο A considerable proportion (estimated at 13.5%) of the Serengeti-Mara ecosystem of East Africa (Tanzania) nearly
marine plastic budget occurs as microplastics: a third of the lion population died or disappeared.
 Small (<1 mm) fragments and fibers that originate as • Babesiosis outbreak was also reported in Gir
manufactured particles or are derived from synthetic recently and around two dozen lions were reported to be
textiles or the breakdown of larger plastic debris. killed. Babesia is protozoa that infects red blood cells and
 The seafloor is a globally important sink for plastics; is usually transmitted by a tick bite. Infection with Babesia
however, the physical controls on the distribution of is called babesiosis.
microplastics and the effectiveness of their • ICMR has recommended that the animals should be placed
sequestration once deposited at the seafloor remain in 2-3 different sanctuaries.
unclear.
• The Supreme Court in 2013 ruled in favour of translocation
SO WHAT DOES THIS STUDY CONCLUDE? of the Asiatic lion to Kuno in the interest of the genetic
• It have shown that the overall pattern of bottom currents stability of the species.
controls the distribution of microplastics at the seafloor.
• Bottom currents are efficient conveyors of nutrients and
oxygen, and consequently they dictate the location of
important biodiversity hotspots. Unfortunately, the same
seafloor currents can also transport and emplace
microplastics.
HOW IS THIS RESEARCH SIGNIFICANT?
• It is very important indeed because previous studies have
so far proposed that microplastics are transported to the
seafloor by vertical settling from surface accumulations;
• But this study shows that the spatial distribution and
ultimate fate of microplastics are strongly controlled by
near-bed thermohaline currents (bottom currents).
• These currents are known to supply oxygen and nutrients
to deep-sea benthos, suggesting that deep-sea biodiversity
hotspots are also likely to be microplastic hotspots.
►CANINE DISTEMPER VIRUS (CDV)

Results of the 2020 Asiatic Lion Census have been published that
put the number of lions at 674, a 28% rise from 2015 and which
68
SECTION 4
S CIENCE &
T ECHNOLOGY
SPACE ►EMIRATES MARS MISSION (HOPE
PROBE)
►PERSEVERANCE It is a mission developed by UAE which employ an orbiter. It
• It is a NASA’s mission for Mars. In the Mission, a rover will aims to the first probe to provide a complete picture of the
be launched which will visit Mars. It will be largest rover till Martian atmosphere and its layers. It will reach Mars in
date to land on the surface of Mars. The mission will 2021. Martian atmosphere and the loss of hydrogen and
advance NASA's quest to explore past habitability of Mars. oxygen gases into space over the span of one Martian year.
• The mission will also carry, Mars Helicopter named

INGENUITY. It will be the first powered flight on another ►CHINA'S MARS MISSION (TIANWEN1)
world for the first time. The Helicopter flies on its own, • It will be China's first mission to Mars. The mission involves
without human control. an orbiter, lander and rover. The mission is named
OBJECTIVES Tianwen1 which means Questions to Heaven.
1. Looking for Habitability: Identify past environments • The mission aims to study the thickness and sub layer
capable of supporting microbial life distribution of Martian soil.
2. Seeking Biosignatures: Seeks signs of past microbial life
3. Caching Samples: Collect core rock and soil samples and ►INDIAN NATIONAL SPACE PROMOTION
store them on the Martian surface with objective to bring it & AUTHORISATION CENTRE (IN-SPACe)
back to earth by a future mission.
• It is an independent nodal agency under Department of
4. Preparing for Humans: Test oxygen production from the Space for allowing space activities and usage of
Martian atmosphere. Department of Space owned facilities by
69
SCIENCE & TECHNO
OLOGY
• It will be established as a single
s window
w nodal agenccy with ►ANTARC
CTIC IMPU
ULSIVE T
TRANSIEN
NT
its own cadrre, which will permit and d oversee folllowing
ANTENNA
A A (ANITA)
activities
a of NGPEs.
N
• It is a radio
o telescope to
o detect ultraa-high energyy cosmic-
• Space
S activities including building of la
aunch vehicle
es and
ray neutrin nos from a scientific ballloon flying over the
providing spaace based servvices
continent of
o Antarctica. It is the first NASA observvatory for
• Sharing
S of spa
ace infrastruccture and pre mises under ISRO neutrinos of
o any kind.
• Establishmennt of new spacce infrastructu
ure and facilitties, by • Scientists have detecte ed high eneergy particle es which
NGPEs, for sp
pace activities seemed to o come up out o of Earth.. This is see
en as an
• Initiation of launch cam mpaign and launch, based on evidence off Parallel univ
verse.
readiness of launch
l vehicle
e
• Building, op peration and d control o
of spacecraft for ►SUNRIS
► E MISSIO
ON
registration as Indian satelllite
Itt is a proposeed mission of NASA where it will study how the
• Usage of spaccecraft data Sun
S generatess and releasess giant weatheer storms - kn nown as
• Promotion an nd hand holdding, sharing of technolog gy and solar
s particle storms
s into planetary spacce.
expertise
e to encourage
e private participa
ation in space
e
• It will provide
e a level playin
ng field for prrivate companies to ►SOUTH
► ATLANTIC
C ANOMA
ALY
use Indian space infrastruccture.
• Earth's mag gnetic field acts like a pro
otective shield
d around
• It will also hand-hold,
h promote
p and guide the pprivate the planet, repelling and trapping ch harged particcles from
industries in space activities through e
encouraging p
policies the Sun. But
B over Soutth America aand southern n Atlantic
and
a a friendly y regulatory environment.
e Ocean, an unusually weak w spot in the earth's mmagnetic
field called
d the South Atlantic Ano omaly allows charged
►A
ARAB WO
ORLD'S FIR
RST NUCL
LEAR POW
WER particles from the Sun to reach closser to earth'ss surface
than norma al.
PL
LANT
• Particle rad
diation in this region can
n knock out o
on-board
• UAE has commpleted first nuclear rea ctor at Barakah. It
computers and interfere with data ccollection of satellites
employs
e 1400 0 MW APR-14400 nuclear rreactor design
ned by
that pass th
hrough it.
South
S Korea.
• European Space Agen ncy's Swarmm Constellattion are
• Three
T more similar
s reacto
ors will be de
eveloped at the site
dedicated satellites
s for measuring
m Earrth's magnetic field.
with
w a total ca
apacity of 560
00 MW. The rreactor is loca
ated on
the
t Persian Gulf,
G close to the border of Qatar.
►ARTEMI
► S ACCOR
RD
NASA
N plans to
o land the firsst woman andd the next maan on the
Moon
M by 202 24 by the Artemis
A Proggram. NASA plans to
partner
p with private agencies and otther countrie es for a
sustainable
s prresence on Moon
M while prreparing to conduct a
historic
h human mission to Mars.
M
Artemis
A Accorrd aims to esttablish a com
mmon set of p principles
to govern the civil explo oration and use of oute er space.
International Space agencies that join NASA in the e Artemis
program
p will do so by ex xecuting bilatteral Artemis Accords
agreements,
a which
w will describe a sharedd vision for principles,
grounded
g in the
t Outer Spaace Treaty of 1967 to crea ate a safe
and
a transpare ent environmment which fa facilitates exp
ploration,
science
s and coommercial acttivities.
Oth
her proposed nuclear prop
posed in Arab world:
PRINCIPLES
P
1. Saudi
S Arabia: (Site not seleccted)
1.
1 Peaceful Purpose
P
2. Jordan: Qasr Amra
A
2.
2 Transpare
ency
3. Egypt:
E El Dabb
ba (on the Me
editerranean S
Sea)
4. Sudan
S
70
CIAL EDITION
N) for CSE 20020
SCIENCE & TECHNOLOGY
3. Interoperability: Utilise open international standards, • Scientists at Caltech Zwicky Transient Facility have spotted
develop new standards and strive to support what might be a flare of light from a pair of coalescing
interoperability to the greatest extent possible. black holes. The merger was detected by LIGO
4. Emergency Assistance: Partners will commit to render observatory.
assistance to astronauts in distress and also fulfil • At the centre of most galaxies lurks a supermassive
commitments under Agreement on Rescue of Astronauts, blackhole. It is surrounded by a swarm of stars and dead
the Return of Astronauts and Return of Objects Launched stars, including black holes. These objects swarm like
into Outer Space. angry bees around the monstrous queen bee at the
5. Registration of space objects: Partner countries will be centre. These black holes rotating usually pair up form a
urged to ratify Registration Convention. now larger blackhole. This larger blackhole experiences a
kick that send it in a random direction. This creates a
6. Release of scientific data
bright flare, visible with telescopes.
7. Protecting Heritage
8. Space Resources: Space resource extraction and
►COMET NEOWISE
utilisation can and will be conducted under the auspices
of the Outer Space Treaty. • Comet Neowise officially known as C/2020F3 is the
brightest comet that can be seen in the sky and will be
9. Deconfliction of Activities: partner nations will provide
visible across the globe as it is closest to the earth these
public information regarding the location and general
days. The Neowise, once disappears will be visible only
nature of operations which will inform the scale and
after 6800 years.
scope of ‘Safety Zones’. Notification and coordination
between partner nations to respect such safety zones will • It was first spotted by NASA's spacecraft mission NEOWISE
prevent harmful interference, implementing Article IX of hence the comet has been named as Neowise.
the Outer Space Treaty and reinforcing the principle of ABOUT COMET
due regard. Comet is an icy small body which consists mostly of rocky
10. Orbital Debris and Spacecraft Disposal: Participants will materials, dust and ice. As they come closer to the sun there
abide by Space Debris Mitigation Guidelines of the UN is evaporation of volatile contents from these comets. When
Committee on Peaceful Uses of Outer Space. Partner they start melting, the particles start glowing by the reflected
countries will agree to plan for mitigation of orbital debris, sunlight. This makes the 'dust tail' of Comets.
including safe, timely and efficient passivation and
disposal of spacecraft at the end of their missions. ►SKYROOT AEROSPACE
• It is an Indian start-up in the aerospace sector which has
►CREW DRAGON successfully test fired an upper-stage rocket engine. It has
SpaceX Crew Dragon is a commercial spaceflight mission become the first Indian company to display the capability
which is capable humans to space. On May 30, SpaceX to build a homegrown rocket engine.
became the first private company to take humans (two • The company has developed Vikram series of rockets.
astronauts from NASA) to International Space Station. It
became the first spaceflight carrying humans from US soil in
►ITER
more than a decade.
ITER will be a 500 MW tokamak fusion device designed to
prove the feasibility of fusion as a large-scale and carbon-free
►BLACK HOLE MERGER
source of energy. The European Union is contributing almost
LIGO observatory has detected merger of two unequal mass half of the cost of its construction, while the other six
blackholes. members (China, India, Japan, South Korea, Russia and the
BLACK HOLE MERGER USA) are contributing equally to the rest. The target for first
• When two black holes spiral around each other and plasma is 2025.
ultimately collide, they send out gravitational waves. Since CRYOSTAT OF ITER
black holes and black hole mergers are completely dark, L&T, an Indian company, has supplied the Cryostat for the
these events are invisible to telescopes and other light ITER Tokamak reactor being built. The ITER cryostat will be
detecting instruments. However, theorists have come up largest stainless steel high vacuum pressure chamber ever
with ideas about how a black hole merger could produce a
light signal by causing nearby material to radiate.
71
built. It provides high vacuum, ultra-cool environment for the • This is the first time that a lander will be designed and
ITER vacuum vessel and superconducting magnets. implemented by ISRO.
►FACILITY FOR ANTIPROTON AND ION

RESEARCH (FAIR) HEALTH &
• It is one of the world's biggest under-construction particle
accelerator facility
BIOTECHNOLOGY
• Member countries: Finland, France, Germany, India, ►INNATE IMMUNITY
Poland, Romania, Russia, Slovenia and Sweden. UK is an
It is non-specific type of defence, that is present at the time of
associated and Czech Republic is still an associated partner
birth. It is accomplished by providing different types of
in FAIR. India is third largest collaborating country
barriers to entry of the foreign agents into our body.
committed to contributing to building the advanced
IT CONSISTS OF
accelerator and detector systems for this. Department of
Science and Technology, GOI is the nodal ministry for the 1. Physical barriers: Skin, mucus coating etc stop microbes
project from India. to enter our body.
2. Physiological barriers: Acid in stomach, Saliva in mouth,
►BLACK NITROGEN (NEW ALLOTROPE OF tears prevent microbial growth.
NITROGEN) 3. Cellular barriers: Certain types of leukocytes (WBC) of our

body and monocytes and natural killer (type of
• Researchers from a German university have succeeded in
lymphocytes) in the blood as well as macrophages in
creating a crystalline structure out of nitrogen, which
tissues can phagocytose and destroy microbes.
under normal conditions, occurs in black phosphorus and
4. Cytokine barriers: Virus infected cells secret proteins
arsenic. The structure contains two-dimensional atomic
called interferons which protect non-infected cells from
layers (similar to graphene) and is therefore of great
further viral infection.
interest for high tech electronics. The scientists have
named it black nitrogen. ACQUIRED IMMUNITY
• Black nitrogen, which is new allotrope ! Continued from • It is pathogen specific. It is characterised by memory. This
page 3 S&T NEWS of nitrogen, is formed when nitrogen is means when our body encounters a pathogen for the first
placed in a diamond stamp cell between opposite time it produces a response called primary response which
diamonds and pressed together under extremely high is of low intensity. Subsequent encounter with the same
pressures. It took truly extreme conditions to produce pathogen elicits a highly intensified secondary or
black nitrogen. anamnestic response.
• Both B cells and T cells are lymphocytes that are derived
►SARABHAI CRATER from specific types of stem cells, called multipotent
hematopoietic stem cells, in the bone marrow. After they
• To mark completion of one year of centenary celebrations
are made in the bone marrow, they need to mature and
of Dr Vikram Sarabhai, the Father of India's Space
become activated. Each type of cell follows different paths
Program, ISRO has announced that a crater discovered on
to their final, mature forms.
the Moon has been named as Sarabhai Crater.
Primary and secondary responses are carried out with the
• "Sarabhai" Crater is named after Dr Vikram Sarabhai and
help of two special types of lymphocytes:
around 250 to 300 kilometres east of this Crater is where
the Apollo 17 and Luna 21 Missions had landed. 1. B-Lymphocytes (Also called B cells): produce an army of
proteins in response to pathogens into our blood to fight
• Chandrayaan 2 continues to perform as per design and
with them. These proteins are called antibodies.
providing valuable scientific data.
2. T-Lymphocytes (Also called T cells): T-cells themselves do
not secrete antibodies but help B cells to produce them. It
►CHANDRAYAAN-3
provides long lasting immunity.
• It is a planned mission for Moon by ISRO. This mission will
involve a lander, rover and a propulsion system to carry
the modules to move but it would not have orbiter.
72
►TESTS FOR COVID-19: A COMPARATIVE ANALYSIS
Rapid Antigen
RT-PCR TrueNat Saliva Based Test Antibodies Test
Tests
• It detects viral RNA. The • These tests were • It is a new test for • It tests for It tests for antigen
specimen required is Nasal or originally designed to COVID-19 which presence of of COVID-19
Oral swab. It is considered as detect TB and drug utilises saliva sample. antibodies for present in nasal
gold standard for COVID-19 resistance to rifampicin. Since taking saliva COVID-19 in the swab.
testing. They have been sample is easy, the blood samples
• PCR tests try to capture a redesigned to test for test is easy to of people.
specific gene from DNA in the COVID-19. conduct. • The presence of
swab sample, and multiply it • TrueNat is a chip-based, antibodies
through a series of chemical battery operated RT-PCR shows that the
processes so that it can be kit. It can identify E-gene person has been
detected using fluorescent in COVID-19 which helps infected by the
dyes. These tests can work in the virus build a corona virus in
real time. spherical envelop the past.
• However, since COVID-19 around it.
does not have a DNA, but
RNA molecule. The reverse
transcription process (RT in
RT-PCR) converts the DNA
into RNA which is then tested.
Advantages: Advantage: Advantage: Advantages: Advantages:

• Tests directly for virus • Machine is portable• No requirement of • Antibodies tests • Delivers results
• Gives accurate results • Costs less than RT-PCR specialised health are useful for very fast (15-20
test workers sero-survey of minutes)
• High specificity
populations.
Disadvantages: • Last mile diagnostics • Sample taking errors • Cheaper than
and remote locations is limited • Sero-surveys RT-PCR test
• High cost of test can determine • High specificity
• Battery operated
• Takes a day to share results how much
Disadvantages:
(Laboratory required) percentage of
population has • High rate of
• Required trained staff and
false negative
labs been infected in
the past. (ie the tests
shows a
• It will help
person is not
determine if
infected,
herd immunity
despite being
has been
infected)
achieved.
• It will help
determine when
lockdown needs
to be eased.
►FISH CRYOBANKS country, which will facilitate all time availability of fish
sperms of desired species to fish farmers. This would be
• Union Ministry of Fisheries, Animal Husbandry & Dairying
first time in the world when Fish Cryobank will be
will establish 'Fish Cryobanks' in different parts of the
established.
73
• Cryomilt technology has been developed by NBFGR along access to safe and effective vaccines, once they are
with NFDB which can be helpful in establishment of fish licensed and approved. COVAX currently has world's
cryobanks. largest and most diverseCOVID-19 vaccine portfolio.
• It is the only global initiative that is working with
►PATENT POOLS governments and manufacturers to ensure COVID-19
vaccines are available worldwide to both higher-income
• Costa Rica suggested pooling of rights to deal with the
and lower-income countries.
COVID-19 pandemic through free or minimal, affordable
licensing to ensure equitable access to drugs during the • It is the vaccine pillar of the COVID-19 Tools (ACT)
World Health Assembly. Accelerator. It is co-led by CEPI, GAVI and WHO working in
partnership with developed and developing countries
• According to WIPO, patent pools are defined as an
vaccine manufacturers.
agreement made between two or more patent holders for
licensing their patents to one another or any third party COVAX FACILITY
for the purpose of sharing their intellectual property • The COVAX Facility is a Gavi-coordinated pooled
rights. Generally, patents pools are made for complex procurement mechanism for new COVID-19 vaccines,
technologies which necessitate complementary patents for through which COVAX will ensure fair and equitable access
providing productive technical solutions. These patent to vaccines for each participating economy, using an
pools impart essential technologies by way of patents to allocation framework currently being formulated by WHO.
various companies or firms for developing competent The COVAX Facility will do this by pooling buying power
products. Moreover, patent pools also cover those from participating economies and providing volume
technologies which are not yet full-fledged developed. guarantees across a range of promising vaccine
• Patent pools are generally used in electronics and candidates, allowing those vaccine manufacturers whose
communication sector wherein they are used for Standard expertise is essential to large scale production of the new
Essential Patents. vaccines, to make early, at-risk investments in
manufacturing capacity – providing participating countries
and economies with the best chance at rapid access to
►MEDICINES PATENT POOL doses of a successful COVID-19 vaccine.
• It is a United Nations backed public health organisation • The success of COVAX hinges not only on countries signing
working to increase access to and facilitate development of up to the COVAX Facility, but also filling key funding gaps
life saving medicines for low and middle income countries for both COVAX R&D work and a mechanism to support
through an innovative approach to voluntary licensing and participation of lower-income economies in the COVAX
patent pooling. It was established in 2010 by Unitaid. It Facilit
first started to focus on HIV AIDS, TB and Hepatitis C. The • CEPI is leading COVAX vaccine research and development
organisation's mandate was expanded to patented work, which aims to develop three safe and effective
essential medicines included in the WHO Essential vaccines which can be made available to countries
Medicines List. participating in the COVAX Facility.
• In 2020, MPP's Board decided to temporarily expand COVAX ADVANCE MARKET COMMITMENT (AMC)
MPP's mandate to include any health technology that
It is a financing instrument aimed at supporting the
could contribute to global response to COVID-19 and
participation of 92 low and middle income countries in the
where licensing could facilitate innovation and accelerate
COVAX facility. The COVAX AMC has raised more than US$
access.
600 million against an initial target of securing US$ 2
billion seed funding from sovereign donors as well
►COVID-19 TECHNOLOGY ACCESS POOL as philanthropy and the private sector, needed by the end of
• It will compile, in one place, pledges of commitments 2020. Funding the COVAX AMC will be critical to ensuring
made under the Solidarity Call to Action to voluntarily ability to pay is not a barrier to accessing COVID-19 vaccines,
share COVID-19 health technology related knowledge, a situation which would leave the majority of the world
intellectual property and data. unprotected, with the pandemic and its impact continuing
• Implementing Agencies: Medicines Patent Pool, Open unabated
Covid Pledge, Tech Access Partnership & Unitaid.
►GAVI
►COVAX • Gavi, the Vaccine Alliance is a public-private partnership
• It is a global initiative aimed at working with vaccine that helps vaccinate half the world’s children against some
manufacturers to provide countries worldwide equitable of the world’s deadliest diseases.
74
• It was founded in 2000. of about one hour. This makes taking MRI difficult specially
for children and some category of patients.
►CEPI
• It is a partnership between public, private, philanthropic, ►BREAKING BARRIERS TO HEALTH DATA
and civil organisations, launched at Davos in 2017, to PROJECT
develop vaccines to stop future epidemics. CEPI has
It is a project of World Economic Forum to ensure that people
moved with great urgency and in coordination with WHO
living with rare and other complex diseases were not missing
in response to the emergence of COVID-19. CEPI has
out on life saving diagnoses and treatments.
initiated nine partnerships to develop vaccines against the
novel coronavirus. The programmes are leveraging rapid
response platforms already supported by CEPI as well as ►DENGUE CONTROL
new partnerships. • Scientists in Indonesia infected mosquitoes with a
• India is one of the founding members of CEPI. bacteria called Wolbachia, which occurs naturally in
• Before the emergence of COVID-19, CEPI’s priority diseases some species of insects including mosquitos. However,
included Ebola virus, Lassa virus, Middle East Respiratory Wolbachia does not naturally occur in Aedes aegypti, the
Syndrome coronavirus, Nipah virus, Rift Valley Fever and mosquito species that spreads dengue and other diseases
Chikungunya virus. CEPI also invested in platform like chikungunya, Zika and yellow fever.
technologies that can be used for rapid vaccine and
• In 2008, scientists at Australia's World Mosquito Program
immunoprophylactic development against unknown
discovered that Aedes Aegypti mosquitoes can no longer
pathogens (Disease X).
spread dengue when they are carrying Wolbachia. As
dengue virus struggles to replicate inside mosquito when
►INDIAN INITIATIVE ON EARTH these bacteria are present.
BIOGENOME SEQUENCING • Trial of this method was conducted in the Indonesian city
• It is a project of Department of Biotechnology under of Yogyakarta. Researchers discovered that incidence of
Ministry of Science and Technology under which genetic dengue was 77% lower in areas where Wolbachia infected
sequencing of all known species of plants and animals in mosquitos has been released.
the country will be undertaken.
WORLD MOSQUITO PROGRAM
• National Institute of Plant Genome Research is the
The World Mosquito Program uses safe and natural bacteria
coordinating centre for the project which will involve total
called Wolbachia to prevent the transmission of mosquito-
24 institutes.
borne viral diseases such as dengue, Zika, chikungunya and
• In the initial phase, whole genome sequencing of 1000 yellow fever.
species of plants and animals will be undertaken.
• The project is a part of Earth BioGenome Project, an
international initiative.
MISCELLANEOUS
EARTH BIOGENOME PROJECT
It is described as 'moonshot for biology'. It aims to sequence ►HARITH PATH APP
genetic code of all of earth's eukaryotic biodiversity over a NHAI, a PSU under the Ministry of Road Transport and
period of 10 years. Highways has developed a mobile app called Harit Path to
monitor location, growth, species details, maintenance
►fastMRI activities, targets and achievements of each of its field units
It is Artificial Intelligence powered Magnetic Resonance for each and every plant under all plantation projects.
Imaging tool developed by Facebook and NYU Langone. It can

create images with 25% data as compared to traditional MRI ►HARIT BHARAT SANKALP
machines. It is a nationwide plantation drive, under which NHAI has
MAGNETIC RESONANCE IMAGING planted over 25 lakh plants in 25 days along national
MRI scan helps diagnose organs, muscle and other soft highways.
tissue. Traditional require data to be captured for a duration
75
►L7 VEHICLES ►SRIJAN PORTAL

• Ministry of Road Transport and Highways has recently • It is a portal launched by Department of Defence
notified emission norms for L7 vehicles. Production, under the Ministry of Defence which is a one
• L7 vehicles are Quadricycles. stop shop online portal that provides access to the
vendors to take up items that can be taken up for
indigenization.
►DEEPFAKE
• On this portal, DPSUs/OFB/SHQs can display their items
It is a technology which uses a form of artificial intelligence
which they have been importing or are going to import
called deep learning to make images of fake events. In it a
which the Indian Industry can design, develop and
person in an existing video or image is replaced with
manufacture as per their capability or through joint
someone else's likeness.
venture with OEMs. The Indian Industry will be able to
It employs Generative adversarial Networks to generate show their interest. The concerned DPSUs/OFB/SHQs,
visual or audio content with a high potential to deceive. based on their requirement of the items and their
They have been used for: guidelines & procedures will interact with the Indian
• Celebrity pornographic videos industry for indigenization.
• Fake news • The portal displays information in a structured way, which

includes the item name, image and specification, values of
• Financial frauds
imports, NATO Classification (indicative), etc. It also has a
search facility.
►SWADESHI MICROPROCESSOR
CHALLENGE ►NAVAL INNOVATION AND
Ministry of Electronics & Information Technology (MEITY) has INDIGENISATION ORGANISATION (NIIO)
launched Swadeshi Microprocessor Challenge to provide
• The NIIO puts in place dedicated structures for the end
impetus to innovation and research.
users to interact with academia and industry towards
Indigenous Microprocessors: fostering innovation and indigenisation for self-reliance in
IIT Madras and CDAC have developed two microprocessors defence in keeping with the vision of Atmanirbhar Bharat.
using Open Source Architecture under the aegis of • The NIIO is a three-tiered organisation. Naval Technology
Microprocessor Development Program of MEITY. Acceleration Council (N-TAC) will bring together the twin
1. SHAKTI (32 bit) aspects of innovation and indigenisation and provide apex
2. VEGA (64 bit) level directives. A working group under the N-TAC will
implement the projects. A Technology Development
Acceleration Cell (TDAC) has also been created for
►'TRAVEL BUBBLE' ARRANGEMENT induction of emerging disruptive technology in an
• During the COVID-19 lockdowns, countries had stopped accelerated time frame.
allowing foreign visitors and international travel. However, • The Draft Defence Acquisition Policy 2020 (DAP 20)
as the threat of COVID-19 eased in countries they signed envisages Service Headquarters establishing an Innovation
agreements on bilateral basis for allowing travel to certain & Indigenisation Organisation within existing resources.
countries which they perceive has less incidence of COVID- Indian Navy already has a functional Directorate of
19 infection and travelling to them will be safe. These Indigenisation (DoI) and the new structures created will
agreements are called as Travel Bubble arrangements. build upon the ongoing indigenisation initiatives, as well as
• India has signed travel bubble arrangements with: US, focus on innovation.
Germany, France and UK.
REPORTS ►IMPORT EMBARGO ON 101 DEFENCE
ITEMS
1. Future of Nature and World Economic Forum
Business Report • Ministry of Defence (MoD) has prepared a list of 101 items
for which there would be an embargo on the import
2. COVID-19: The Great Reset World Economic Forum beyond the timeline indicated against them. These items
will be procured from domestic manufacturers.
• It will create self-dependence in defence sector.
76
►GREENDEX of data QR Code size. They were developed by Denso, a

company from Japan.
• It is an index compiled annually by National Geographic
and GlobeScan.
►NATIONAL GIS ENABLE LAND BANK
• It measures the way consumer patterns are responding to
environmental concerns. SYSTEM
• In the survey of 18 countries, India came number 1 in • Department for promotion of Industry & Internal Trade
terms of contribution to sustainability and environment. (DPIIT, under the Ministry of Commerce and Industry) has
developed Industrial Informal System (IIS) portal.
• It is a GIS enabled database of Industrial areas/clusters
►PRESIDIO PRINCIPLES FOR
across the country to adopt committed approach towards
BLOCKCHAIN TECHNOLOGY resource optimisation, industrial upgradation and
• World Economic Forum's Global Blockchain Council sustainability.
drafted the following principles to help safeguard the • The portal serves as a one-stop solution to the free and
promise of Blockchain technology. easy accessibility of all industrial information including
• According to the principles, applications build on top of availability of raw material â€“ agriculture, horticulture,
Blockchain should preserve the following participant minerals, natural resources; distance from key logistic
rights: nodes; layers of terrain and urban infrastructure.
1. Transparency & Accessibility • The initiative is being supported by Invest India, the
2. Agency & Interoperability national investment promotion & facilitation agency,
National Center of Geo-Informatics (NCoG), National e-
3. Privacy & Security
Governance Division (NeGD), Ministry of Electronics &
4. Accountability & Governance. Information Technology and Bhaskaracharya Institute for
Space Applications and Geo-Informatics (BISAG).
►XENOBOTS • Industrial Information System (IIS) aims to provide:
• The scientists in the United States have created the world’s (i) Information on available land for prospective investors
first “living machines” – tiny robots built from the cells of looking at setting up units in the Country
the African clawed frog, that can move around on their
(ii) GIS Mapping of Industrial Clusters
own.
(iii) The system also holds the information about the existing
• They have named the millimetre-wide robots “Xenobots” –
External and Internal Infrastructure such as rail, road, air
after the species of aquatic frog found across sub-Saharan
and port connectivity and other common facilities in and
Africa, from Nigeria and Sudan to South Africa, Xenopus
around the manufacturing clusters
laevis.
(iv) Links to State GIS Portals and State Land Banks
►QR CODE
►NATIONAL DETERMINED
• QR Code stands for Quick Response Code. The main
CONTRIBUTIONS- TRANSPORT INITIATIVE
purpose of its development was to create a Code that
could be read quickly. FOR ASIA
• The features of the QR Codes are: • It a program to promote decarbonisation of transport
sector in India, Vietnam and China. It is a joint program
1. High capacity of encoding of data.
supported by the International Climate Initiative (IKI) of the
2. Small printout size.
German Ministry for the Environment, Nature
3. Dirt and damage resistant. Conservation. It is being implemented by a consortium of 7
4. Readable from any direction in 360 degrees. organisations: GIZ, International Council for Clean
5. Structured appending feature. Transportation, World Resources Institute, International
Transport Forum, AGORA, SLoCaT Foundation, REN21.
• The QR Code has an error correction capability to restore
data, if the Code is dirty or damaged. Four error correction • The Indian component will be implemented by 6
levels are available for the users to choose, according to organisations all except, SLoCaT.
the operating environment. Raising this level improves • On behalf of Government of Inda, Niti Aayog will be
error correction capability, but also increases the amount implementing partner.
77
• It is a 4 year program and will allow India and other ►ATL AI STEP UP MODULE
partner countries to achieve accountable long term targets
• Atal Innovation Mission (under the NITI Aayog) has
by making a sectoral contribution through various
launched ATL AI Step Up Module along with NASSCOM for
interventions. This will contribute towards achieving NDCs
students in order to drive AI education and innovation.
and increasing their ambition in the transport sector of
• It aims to bring AI to Indian classrooms and is a successor
2025 NDCs.
to ATL AI module launched earlier.
• The NDC–TIA India Component will focus on establishing a
multi-stakeholder dialogue platform for decarbonizing
transport in India, strengthening GHG and transport
►INDIAN ENERGY MODELLING FORUM
modelling capacities, providing technical support on GHG • Sustainable Growth Pillar of the India-US Strategic Energy
emission reduction measures, financing climate actions in Partnership co-chaired by NITI Aayog and USAID launched
transport, offering policy recommendations on electric India Energy Modelling Forum. India Energy Modelling
vehicle (EV) demand and supply policies, evaluating Forum will aim to:
business models through cost-benefit analyses and so 1. Providing a platform to examine important energy and
forth. environmental related issues
• A significant focus will be given on electric mobility, which 2. Inform decision making process of Indian government.
would require coupling of transport and energy sectors 3. Improve cooperation between modelling teams,
and receiving cross-sectoral expertise from ministries, government and knowledge partners, funders
international development agencies, think tanks, public
4. Facilitate exchange of ideas, ensure production of high
and private organisations. Ultimately, the programme
quality studies
intends to support the development of policies and
5. Identify knowledge gaps at different levels and across
regulations to promote electric vehicle charging
different areas
infrastructure uptake and smooth widescale adoption of
EVs in India. 6. Build capacity of Indian institutions
• NITI Aayog will initially coordinate the activities of the
forum and finalizing its governing structure. The forum
►DECARBONIZING TRANSPORT IN
would include knowledge partners, data agencies and
EMERGING ECONOMIES (DTEE PROJECT) concerned government ministries.
• It is a joint project of NITI Aayog and International
Transport Forum of OECD which will help India develop a ►qkdSim
pathway towards a low-carbon transport system through
Raman Research Institute (RRI), an autonomous institute of
the development of modelling tools and policy scenarios.
the Department of Science & Technology (DST), Government
• The project will design a tailor made transport emissions
of India have come up with a unique simulation toolkit for
assessment framework for India. end-to-end QKD simulation named as ‘qkdSim’, which is
• It will provide the government with a detailed based on modular principles that allow it to be grown to
understanding of current and future transport activity and different classes of protocols using various underpinning
the related CO2 emissions as a basis for their decision- technologies. It has been developed as part of Quantum
making. Experiments using Satellite Technology (QuEST) project,
• This project is a part of ITF's Decarbonising Transport India’s first satellite-based secure quantum communication
Initiative. It is part of the “Decarbonising Transport in effort, supported by the ISRO.
Emerging Economies” (DTEE) family of projects, which
supports transport decarbonisation across different world ►QUANTUM KEY DISTRIBUTION
regions. India, Argentina, Azerbaijan, and Morocco are • It is a cryptographic method that enhances the security of
current participants. communication link by exploiting principles of quantum
ABOUT INTERNATIONAL TRANSPORT FORUM mechanics such as uncertainty principle and no-cloning
India has been a member of ITF which is an theorem.
intergovernmental organisation for transport policy. It came • A shared random secret key known only to the
into being in 2008. communicating parties is employed to encrypt and
decrypt messages. A unique property of quantum key
distribution is that any break in attempt by an
78
unauthorized party is immediately detected. This is • Production: vaccines can be produced more rapidly in the
because any process of measuring a quantum laboratory in a process that can be standardised, which
system creates detectable anomalies improves responsiveness to emerging outbreaks.
• Heisenberg’s uncertainty principle which puts a IMPORTANT CHALLENGES
fundamental limit to the knowledge an observed might • The methods to make mRNA vaccines can be very
have of a quantum system. effective. However, there are technical challenges to
• No-cloning theorem which states any arbitrary quantum overcome to ensure these vaccines work appropriately:
state cannot be copied to generate replicas. • Unintended effects: the mRNA strand in the vaccine may
• Quantum Entanglement which creates a non-classical elicit an unintended immune reaction. To minimise this the
correlation between two quantum entities. mRNA vaccine sequences are designed to mimic those
produced by mammalian cells.
►mRNA BASED VACCINES • Delivery: delivering the vaccine effectively to cells is
• Moderna is developing mRNA based vaccine for COVID-19. challenging since free RNA in the body is quickly broken
down. To help achieve delivery, the RNA strand is
• Messenger RNA (mRNA) is a single-stranded RNA molecule
incorporated into a larger molecule to help stabilise it
that is complementary to one of the DNA strands of a
and/or packaged into particles or liposomes.
gene. The mRNA is an RNA version of the gene that leaves
• Storage: many RNA vaccines, like conventional vaccines,
the cell nucleus and moves to the cytoplasm where
need to be frozen or refrigerated. Work is ongoing to
proteins are made. During protein synthesis, an organelle
called a ribosome moves along the mRNA, reads its base reliably produce vaccines that can be stored outside the
cold chain, since these will be much more suitable for use
sequence, and uses the genetic code to translate each
in countries with limited or no refrigeration facilities.
three-base triplet, or codon, into its corresponding amino
acid.
• Conventional vaccines usually contain inactivated disease-
causing organisms or proteins made by the pathogen
(antigens), which work by mimicking the infectious agent.
They stimulate the body’s immune response, so it is
primed to respond more rapidly and effectively if exposed
to the infectious agent in the future.
• RNA vaccines use a different approach that takes
advantage of the process that cells use to make proteins:
cells use DNA as the template to make messenger RNA
(mRNA) molecules, which are then translated to build
proteins. An RNA vaccine consists of an mRNA strand that
codes for a disease-specific antigen. Once the mRNA
strand in the vaccine is inside the body’s cells, the cells use
the genetic information to produce the antigen. This
antigen is then displayed on the cell surface, where it is
recognised by the immune system.
BENEFITS
Benefits of mRNA vaccines over conventional approaches are:
• Safety: RNA vaccines are not made with pathogen
particles or inactivated pathogen, so are non-infectious.
RNA does not integrate itself into the host genome and the
RNA strand in the vaccine is degraded once the protein is
made.
• Efficacy: early clinical trial results indicate that these
vaccines generate a reliable immune response and are
well-tolerated by healthy individuals, with few side effects.
79
SECTION 5
O THER I MPORTANT
E VENTS
INTERNATIONAL
• It has also helped the country after the 2004 tsunami, and
has also supplied drinking water when `Operation Neer’
was launched in 2014.
AFFAIRS
►IUSSTF
►INDIAN OCEAN COMMISSION
The Indo-U.S. Science and Technology Forum (IUSSTF), has
India has been approved as an observer state for Indian
invited Proposals for ‘COVID-19 Indo-U.S. Virtual Networks’
Ocean Commission (IOC). India has become the fifth observer
that would allow Indian and U.S. scientists and engineers
in the commission.
currently engaged in COVID-related research to carry out
joint research activities through a virtual mechanism,
►OPERATION SANJEEVANI leveraging existing infrastructure and funding.
• Indian Air Force has launched `Operation Sanjeevani’ to ABOUT INDO-U.S. SCIENCE AND TECHNOLOGY FORUM
deliver 6.2 million tonnes of essential medicines to (IUSSTF)
Maldives
• The IUSSTF was established under an agreement between
• Medicines including influenza vaccines, anti-viral drugs the Governments of India and the United States of
such as Lopinavir and Ritonavir (these two medicines are
• America in March 2000.
being used in other countries to treat COVID-19) have gone
• It is an autonomous bilateral organization jointly funded
to the Maldives.
by both the Governments that promotes Science,
• The Indian Armed Forces have helped the government of
Technology, Engineering, and Innovation through
the neighbouring Maldives in the neutralization of the
substantive interaction among government, academia, and
1988 coup attempt.
industry.
80
OTHER IMPPORTANT EVENTS
• The
T Department of Science and Techno ology, Governnments ►UN
► SECURITY CO
OUNCIL (IINDIA’S
of
o India, and the U.S. Dep
partment of S
State are resp
pective
ELECTION
E N AS A NO
ON PERMA
ANENT
nodal departm
ments.
MEMBER)
M
►S
SOUTH CHINA SEA
A India has been
n elected for the non-perm
manent seat a
at the UN
Security
S Council.
Jap
pan recently vo
oted to renamee an area inclu uding islands
WHAT
W IS UNS
SC?
disp
puted with Chiina and Taiwa an in the South
h China Sea. It has
ren
named Senkaku u Islands -- known by Taiwan n and China aas the The
T Security Council, the
e United Nattions’ princippal crisis
Dia
aoyus -- from "Tonoshiro"
" to "Tonoshiro Seenkaku". management
m body, is empowered
e to impose binding
obligations
o on
n the 193 UN member
m statees to maintain
n peace.
ROLE
R
• Ensuring international peace and secu
urity;
• Recommennding that thhe General A
Assembly acccept new
members to the United Nations;
N
• Approving any
a changes to
t its charter.
No
N changes to t the UN ch harter or no new member can be
admitted
a into
o UN withoutt the approvaal of UNSC ((as these
resolutions
r require agreem
ment of all the P5 memberss).
VETO
V POWER
The
T veto power originates in Article
e 27 of the United
DISPUTED
CLAIMANT
C CO
OUNTRY Nations
N Charrter, which sta
ates:
ISLANDS
• Each memb
ber of the Seccurity Council shall have a vvote.
Senkaku Island China & Japan
• Decisions of
o the Security Council on n procedural matters
shall be ma
ade by an affirrmative vote o
of nine memb
bers.
Spartly Island China & Philippines;
P M alaysia, Indonnesia
and Brune
ei too claim pparts of the issland • Decisions ofo the Security y Council on aall other mattters shall
Chain be made by y an affirmative vote of ninne members including
the concurrring votes of the
t permanen nt members; provided
Sca
arborough China & Ph
hilippines that, in decisions under Chapter VI, an nd under parragraph 3
Shoal of Article 52
2, a party to a dispute shalll abstain from
m voting.
Parcel Island China and Vietnam • P5 membe ers were granted with a special votin ng power
known as thhe "right to veto".
v It was aagreed by the
e drafters
• More than $5
5 trillion of wo
orld trade ship
ps pass throu
ugh the that if any
y one of the five perman nent memberrs cast a
SCS
S every year.
y The SCCS is also rresource rich h, with negative vote
v in the 15-member SSecurity Cou uncil, the
numerous offfshore oil andd gas blocks. resolution or decision would
w not bee approved.
• South
S China Sea
S has emerrged as the ge
eopolitical center of • All five perm
manent mem mbers have exxercised the
e right of
gravity.
g veto at one e time or ano
other.
• China
C has claimed 90% of the
t area with its conceptio
on of 9- • If a permaanent memb ber does nott fully agree e with a
dash
d line. proposed resolution
r bu
ut does not w wish to cast a veto, it
• Japan
J has inccreased its presence as a result of dissputed may choose to abstain, thus allowingg the resolutiion to be
Senkaku/Dia
S aoyu Island. adopted iff it obtains the requireed number of nine
• Philippines, Vietnam
V have
e emerged aas regional p
players favourable votes.
asserting
a theeir rights in Spartly and
d Paracel Islands WHAT
W IS THE SECURITY CO
OUNCIL’S STR
RUCTURE?
respectively. • Five permanent memb bers—China,, France, Russsia, the
• Other
O playerss include Mala
aysia, Indonessia and Brunie
e. United Kinngdom, and the United d States—co ollectively
known as th
he P5. Any on
ne of them ca n veto a reso
olution.
• Ten non-p
permanent members:
m U
UNSC has te
emporary
members that
t hold their seats on
n a rotating basis by
81
CIAL EDITION
N) for CSE 20020
geographic
g r
region. These
e members d
do not have
e veto • It is part of
o a string of islands off tthe coast of East and
powers Southeast Asia extendin ng from Japaan south thro ough the
NO
ON-PERMANE
ENT SEATS AT
T THE UNSC Philippines to Indonesia..
• Tenure
T of Non-permane ent memberss : Elected fo or two- • Taiwan is bounded
b to th
he north and northeast by the East
year
y terms — Every year, the General AAssembly eleccts five China Sea, with the Ryukyu Islands (tthe southernm
most part
non-permane ent members out of the tottal 10. of Japan) to
o the northeasst.
• Distribution of seats am mong the reg gions of the world: • To the easst there lies the great exxpanse of th
he Pacific
five
f seats for African and Asian countriies; one for E
Eastern Ocean and d to the sou uth is the Baashi Channeel, which
European cou untries; two fo
or Latin Amerrican and Caribbean separates Taiwan
T from the
t Philippinees.
countries;
c an
nd two for Western Eurropean and Other • To the we est is the Taiwan
T (Form
mosa) Strait, which
Countries.
C separates Taiwan
T from the
t Chinese m
mainland.
• Within
W the Fiive seats for Africa and A
Asia, three a
are for
Africa
A and tw
wo for Asia. ►UN
► SECRETARIAT
T “6+2+1”” MEETIN
NG
• The
T current non-perman nent membe ers of the Se
ecurity • UN Secretaariat held a “6
6+2+1” meetin
ng on regiona
al efforts
Council
C - Belgium, Do ominican Re epublic, Gerrmany, to support peace in Afghanistan.
Indonesia, annd South Africa, all of wh ose terms ennd this
• 6 neighbo ours of Afghanistan (Ch hina, Iran, Pakistan,
year;
y and Esto
onia, Niger, Sa
aint Vincent a
and the Grena
adines,
Tajikistan, Turkmenistan
T n, and Uzbekisstan), 2 globa
al players
Tunisia,
T and Vietnam,
V whose terms end in 2021.
(the USA and
a Russia) and
a 1 (Afghaanistan) atten
nded the
• India begins its term in the
e beginning o
of 2021 and w
will hold meeting
the
t position until
u the end of
o 2022.
• India was not
n invited to the
t meeting
• India has earrlier been a non-permaneent member of the
Security
S Council in 1950--51, 1967-68,, 1972-73, 19
977-78,
►OPEN
► SK
KIES TRE
EATY (OST
T)
1984-85, 1991
1-92 and 2011 1-12.
The
T United States of America a (USA) has annnounced that iit will exit
the
t Open Skies Treaty (OST) due d to changinng environmen nt of
►T
TAIWAN ISSUE
I
security
s and coontinuous viola ation of the treeaty by Russia. USA is
Uniited States ha
as backed partticipation of TTaiwan at the United expected
e to forrmally pull outt of Open Skiess in six monthss.
Nattions. Howeveer, this move of US has b been condemn ned by
ABOUT
A OPEN
N SKIES TREAT
TY
Chiina as it consiiders Taiwan as
a its provincee and its inaliienable
• It was firstt proposed in
i 1955 by fformer US President
parrt.
Dwight Eis senhower ass a means to
o deescalate tensions
during the Cold War.
• The landm
mark treaty was
w eventuaally signed aafter the
demise of the Soviet Union in 19992 between NATO
members and
a former Warsaw
W Pactt countries.
• The treaty entered into o force on JJanuary 1, 20
002, and
currently 34
4 states are party to the treeaty
• The OST aims
a at build
ding confiden
nce among m members
through mutual openne ess, thus red
ducing the ch
hances of
accidental war.
w
• Under the treaty,
t a mem mber state can n “spy” on an
ny part of
the host na
ation, with the
e latter’s conseent.
• A country can
c undertake e aerial imaginng over the hhost state
after giving
g notice 72 hours before, and sharing its exact
flight path 24 hours befo ore. The treatty permits ea ach state-
party to co onduct short-notice, unarrmed, reconn naissance
flights overr the others' entire
e territorries to collectt data on
military forces and activities.
82
CIAL EDITION
N) for CSE 20020
• The
T informattion gathered, such as on troop movements,
military exerrcises and missile
m deployyments, has to be
shared
s with all
a member sta ates.
• All
A of a sta ate-party's te
erritory can be overflow wn. No
territory
t can be
b declared off-limits
o by th
he host nationn. Even
the
t treaty allo
ows for multiple states-pa rties to take part in
an
a overflight.
• India is not a member co
ountry.
►IINDIA CHINA BORD

DER DISP
PUTE
20 India soldiers died in a clash
h with People’ss liberation arm
my of
Chiina in a clash at
a the Galwan valley in Ladaakh region. WESTERN
W SEC
CTOR I.E. AKS
SAI CHIN SECTTOR
IND
DIA - CHINA BOUNDARY
B DISPUTE
D • The two sides differ over the bboundary line that
• India shares a 3488-long boundary wiith China along the separates Jammu
J and Kashmir
K from
m Xingjiang p
province
states
s of Jam
mmu and Kas shmir, Uttarrakhand, Himmachal of China.
Pradesh, Sikkim and Arunachal Prade esh. • India accusses China of illegally occup
pying Aksai C
Chin, and
• However, the e border between India and China is not some otherr parts of Lada
akh region.
clearly
c demarcated throug ghout and th
here is no mutually • According to
t China, Akssai Chin is thhe extension of Tibet
agreed
a Line of
o Actual Conttrol (LAC). plateau whereas India claims it as an
n extension o
of Ladakh
• The
T differencce in percepttion of bound dary lines be
etween plateau.
India and Ch hina has resu ulted in one of longest p political • The region is mostly unin
nhabited.
battles over boundaries
b in the history.
• Significanc
ce for China:: Aksai chin iss important ffor China
as it conne
ects two back
kward provincces of China i.e. Tibet
and Xinjiang.
83
CIAL EDITION
N) for CSE 20020
• British advoccated farther northern Kasshmiri borderr in the
form
f of John
nson Line where
w Aksai Chin was p
part of
Kashmir. And sometime they advocatted McDonalld line
under which
h Aksai Chin falls under Xinjiang Pro
ovince
of
o China.
• Disagreement prevails witth India claim
ming Johnson Line
to
t be correctt and China claiming MccDonald Line
e to be
correct.
c
EAS
STERN SECTO
OR: MCMAHO
ON LINE
Background
B
• In the eastern
n sector, the boundary wa
as delineated in the
1914
1 Shimla conference of British Ind
dia, China and
d Tibet.
Accordingly,
A t
the British prroposed the fformation of Outer-
Tibet
T borderin
ng India and Inner-Tiber
I bo
ordering Chin
na.
• A boundary demarcating
d Tibetan
T regio
on of China and the
North-east Frontier
F Area
as of India (current Aru
unachal
Pradesh) wa
as agreed upon by Brittish and Tibetan
representatiives which ca
ame to be ca
alled the McM
Mahon
Line.
• This
T is another contentiou
us issue beca use China do
oes not
recognize the
e McMahon line as it wa
as signed be
etween
British and Tibet
T which was
w not a sovvereign state at the Location
 off LAC
time.
t
• The LAC lies east of the confluence
c off the Galwan a
and
• As
A a result, China claimss Arunachal Pradesh esp
pecially Shyok riverrs in the valley
y up to which
h both India an
nd China
Tawang
T as a part
p of Tibet. have been patrolling in recent
r years.
• Though
T India
a recognizes Chinese
C suze rainty over T
Tibet, it • After the re
ecent clash Chhina has claim
med the entire
e valley li
considers
c McMahon line to
o be the offici al boundary. es on its sid
de of the LAC..
Location of Galwan
L G Valley
y • China has been
b objeccting to India’ss road construction
activities at
a the weste ern end of tthe valley, in the area
• It lies along the
t course off river Galwan
n. Galwan rivver is a between th he Galwan Shyyok confluencce and the LAC
C.
tributary
t to th
he Shyok riverr.
• China now claims that th
he entire valleey is on its sid
de of the
Source
S LAC.
• Aksai
A Chin, on
n China’s side of the LAC, a
and it
flows
f east into Ladakh, where it meets tthe Shyok rive
er on ►CHINA
► STUDY
S GR
ROUP
India’s side off the LAC Itt is a gov vernment orrganisation w which comp prises of
Strategic Imp
S portance secretaries
s off important ministries
m andd three servicce chiefs.
The
T body advises government on policiees towards China. It is
• It is strategiccally located between Lad
dakh in the we
est and
headed
h by National Securitty Advisor. Th
he body was fo ormed in
Aksai
A Chin in the east, wh
hich is curre
ently controllled by
1975 under Inndira Gandhi Government.
G It was first he
eaded by
China
C as part of its Xinjiang
g Uyghur Auto
onomous Reg
gion. M K Narayana an, who later became
b Presi dent of India..
• At
A its western
n end are the
e Shyok riverr and the Darrbuk -
Shyok
S Daulet Beg Oldie (DSDBO) road
d. ►MISSION
► N SAGAR
• Its eastern mouth lies closse to China’s vvital Xinjiang
g Tibet Responding
R to
o the requestss for assistancce in dealing with the
road, now called the G219
9 highway. Covid-19
C panddemic, India ha
as sent Indiann Naval Ship Kesari to
Southern
S India
an Ocean as part
p of Missioon Sagar initia
ative. The
ship
s carries on board two Medicaal Assistancee Teams,

CIAL EDITION
N) for CSE 20020
84
OTHER IMPORTANT EVENTS
consignments of Covid related essential medicines and essential annual reporting of imports and exports to a treaty
food items. secretariat.
• The supplies are sent to five island nations -- Maldives, • It applies to all conventional arms within the seven
Mauritius, Madagascar, Comoros and Seychelles. categories of the UN Register of Conventional Arms
• The Mission involves two major ministries of India-- (battle tanks, armoured combat vehicles, large-calibre
Ministry of Defence and Ministry of External Affairs-- along artillery systems, combat aircraft, attack helicopters,
with several other Government agencies. warships, and missiles and missile launchers) and small
arms and light weapons.
• ‘Mission Sagar’ is inspired by Prime Minister’s vision of
SAGAR - Security and Growth for All in the Region. STATUS OF THE TREATY
• 106 states have ratified or acceded to the ATT, including
►VANDE BHARAT MISSION five of the world's top 10 arms producers (the United
Kingdom, France, Germany, Italy, and Spain). 32 countries
India launched a massive evacuation operation to bring back
have signed but not ratified the treaty(Ex – United States of
Indians stranded in different parts of the world due to the
America).
coronavirus pandemic with the help of Air India.
• While 56 countries have not yet joined the treaty. India
• The mission aims at operating non-scheduled commercial
has abstained from joining the treaty.
flights.
• Under the mission, the people evacuated are to
►G7 & G11
compulsorily download “Arogya Setu” application. After
returning to India, these people are to be kept under American president Donald trump had recently dismissed the
quarantine for 14 days. configuration of Group of Seven – G7 as “outdated”. He also said
that America intends to expand the G7 grouping into a G11
• The flights are being operated based on the Standard of
grouping which would include India while excluding China.
Procedure (SOP) issued by Ministry of Home Affairs.
WHAT IS THE G7?
• This should not be confused with Vande Bharat Express
which is Semi High-Speed Train. • The G7 (or Group of Seven) is an organisation made up of
the world's seven largest so-called advanced economies:
Canada, France, Germany, Italy, Japan, the United Kingdom
►ARMS TRADE TREATY
and the United States.
China has recently announced that it will join UN Arms Trade
• The group regards itself as "a community of values", with
Treaty that is designed to regulate the flow of weapons.
freedom and human rights, democracy and the rule of law,
• The ATT was adopted by the UN General Assembly on 2 and prosperity and sustainable development as its key
April 2013. principles.
• It entered into force on 4th December 2014 HISTORY OF G7
• It is a multilateral treaty that regulates trade in • When the group was formed in 1975, it was known as the
conventional Weapons. G6, comprising France, West Germany, Italy, Japan, the
• It comes under UN office for disarmament affairs. United Kingdom, and the United States.
OBJECTIVES • The G6 was intended to provide major industrial powers of
• The Arms Trade Treaty (ATT) establishes common the non-communist world a venue in which to address
standards for the international trade of conventional economic concerns, which at the time included inflation
weapons and seeks to reduce the illicit arms trade and the recession sparked by the oil crisis of the 1970s.
• The ATT does not place restrictions on the types or • It became G 7 After Canada joined it in 1976
quantities of arms that may be bought, sold, or possessed • It was further expanded into G8 in 1998 when Russia
by states. It also does not impact a state’s domestic gun became a fully participating member.
control laws or other firearm ownership policies. • It again became G7 in 2014 when Russia was suspended
• The Arms Trade Treaty requires all states-parties to adopt following the annexation of Crimea.
basic regulations and approval processes for the flow of • Emerging economies were invited at the meetings of the
weapons across international borders. G8, which came to be Known as G8 + 5. The emerging
• IT establishes common international standards that must economies included – India, Brazil, Mexico, China and
be met before arms exports are authorized, and requires South Africa.
85
►GLOBAL
► L ALLIANC
CE FOR V
VACCINE A
AND
IMMUNIZA
I ATION (GA
AVI)
India
I pledged $15 million to
t Global Allia
iance for Vacccine and
Immunization n(GAVI) at a virtual
v summiit hosted by th
he British
PM
P Boris Johnsson.
GAVI
G ALLIANC
CE
• Global Allia
ance for Vacciines and Immmunization is a public-
private inte
ernational heaalth partnersship that aimss to save
children’s lives and improve people’ss health by inncreasing
access to vaaccines in poo
or and develooping countrie
es.
• It does this by bringing g together aall the stakehholders –
PRO
OPOSED G-11
1 GROUPING donor governments, de eveloping coountries, Worrld Bank,
• It will include the memberrs of the pressent G7 along
g with – UNICEF, WHO,
W Bill & Melinda Gates Fou undation,
India, Russia a, South Kore
ea and Austra alia. international finance and developmeent organizatiions, and
pharmaceu utical industryy – in one deciision making body.
• The
T Americaan president has deliberrately avoide
ed the
inclusion of China
C in this ex
xpanded grou
up. • The GAVI Alliance
A was started
s in 20000 at a time w
when the
number of children gettting immunizeed were stagn nating or
• This
T is mainly
y because of the on-going trade war be
etween
even dwind
dling in the de
eveloping cou ntries.
the
t two coun ntries along with
w the accu
usation by th
he USA
that
t China in
nfluenced WH HO in delayeed the reportting of • India startted receiving
g support fo
for its immu
unization
COVID-19
C Panndemic outbreak. programme e from GAVI in
n 2002.
• Apart from that, India is the largest ssupplier of vaccines to
►H
HONG KO
ONG'S BAS
SIC LAW GAVI with 55%
5 of its vacccines coming from the cou untry.
Chiinese parliameent has passed d new Nationa

al Security law which , • Recently, itt also agreedd to contribuute $4 million to the
greatly expands Beijing’s pow wer in Hong K Kong, and ha as been alliance oveer the next fo
our years. Thiis will give it a chance
critticised by the United
U States as
a “draconian””. to interactt with the donor consttituency and discuss
relevant isssues with them
m.
• The
T 1898 Co onvention forr the Extenssion of Hong g Kong
Territory,
T leassed the New Territories
T to Britain for 99
9 years.
Under the terrms of the tre eaty, China w
would regain ccontrol ►INTERN
► ATIONAL ATOMIC ENERGY
of
o Hong Kong g on July 1, 1997. AGENCY
A (IAEA)
(
• As
A the 99-yea ar treaty wass to expire on
n July 1, 1997
7, both IA
AEA has starte
ed its meeting over
o the Iran’ss Nuclear proggramme.
Britain and China signed a joint declarration on the future It has expressed “serious conncern” in a repport that Iran h
has been
of
o Hong Kong g in 1984. blocking
b inspecctions at the tw
wo sites wheree nuclear activiity may
• Under the joint declaratio
on, an innovaative “one co ountry, have
h occurred in the past.
two
t systems” was deviised, under which Hong g Kong INTERNATION
NAL ATOMIC ENERGY AGEENCY (IAEA)
reverted to Chinese sovere
eignty while rretaining its p
political • It was Se et up as the t world’s “Atoms forr Peace”
and
a economicc system. organizatio
on in 1957 witthin the Uniteed Nations fam
mily.
• The
T political process in Hong
H Kong is guided as p
per the • It reports to both the United Nation
ns General A
Assembly
province’s Baasic Law, whiich says that: and UN Security Counc cil.
• The
T socialist system and policies
p shall not be practiced in • India is a founding mem
mber of the IA
AEA.
the
t Hong Kon ng Special Addministrative Region, an nd the
• The IAEA is
i an autono omous orga
anisation witthin the
previous cappitalist system
m and way o of life shall rremain
United Nattions system
m.
unchanged fo or 50 years.
• It is conside
ered to be a ‘related organ
nization’ by th
he United
• The
T Chief Ex
xecutive (CE)) is the high hest representative
Nations.
leader in Hon
ng Kong and he
h shall be sselected by election
or
o through coonsultations held
h locally an
nd be appoin
nted by • It is not a specialised
d agency beccause of the political
the
t Central Peeople's Goverrnment. nature of th
he work done
e by it.

CIAL EDITION
N) for CSE 20020
86
• It seeks to promote the peaceful use of nuclear energy, ►NEW ORIENTATION FOR REFORMED
and to inhibit its use for any military purpose, including
MULTILATERAL SYSTEM OR NORMS
nuclear weapons.
In line with its agenda in its 8th term as the non-permanent
• Works with its Member States and multiple partners
member of the UNSC, India has reaffirmed its commitment to
worldwide to promote the safe, secure and peaceful use of
New Orientation for Reformed Multilateral System or NORMS at
nuclear technologies.
the UN Economic and Social Council meeting.
• It aims at applying mandatory comprehensive safeguards
The 5-fold objective of NORMS include
in non-nuclear weapon states (NNWS) under the Nuclear
Non-Proliferation Treaty (NPT) and other international 1. Finding new opportunities for progress
treaties. 2. Effective response to international terrorism
3. Reforming multilateral systems
►RIC TRILATERAL GROUPING 4. Comprehensive approach to international peace and
Recently a special foreign minister level meeting of the trilateral security
group of Russia-India-China (RIC), was held. The meeting took 5. Technology with a human touch
place in the backdrop of ongoing border tensions between India
and China. The special meeting was held to mark 75 years of the
►MALABAR NAVAL EXERCISE
victory over the Nazi Germany in the second World war.
There is speculation that Australia will join the Malabar military
ABOUT RIC GROUPING
exercise along with China and USA. All the members of this drill
• RIC as a strategic grouping first took shape in the late are also the members of the Quadrilateral grouping which aims
1990s as a counterbalance to the Western alliance. at countering China in the Indian Ocean region.
• It was formulated in the backdrop of Cold war rivalry just ABOUT THE EXERCISE
years before the disintegration of erstwhile USSR.
• There is increasing consensus at the official level that
• The group was founded by PM of Russia Yevgeny Primakov Australia should join the naval war games.
for renewing old ties with India and fostering the newly
• The final decision is likely before the exercise, which could
discovered friendship with China.
take place towards the end of this year.
• The group presently faces challenges in terms of the
• The Malabar exercises were first established in 1992
growing differences between India and China and the
between India and the United States, but due to
growing Bonhomie between Russia and China.
tensions arising from India’s nuclearization in 1998, it
IMPORTANCE OF THE GROUP FOR INDIA became an annual feature only in 2002.
• RIC countries comprise the Core of the BRICS and the SCO. • In 2007, the scope of Malabar was enhanced and a five-
• These countries are also on the same page regarding the nation multilateral naval exercise taking on board three
reform of multilateral institutions like IMF and the other nations Japan, Australia and Singapore was
World Bank. organised.
• India is increasingly interested in connectivity with the • However, this display of multilateral naval cooperation
Central Asian nations. The conception of International heightened China’s anxiety. Both India and the US sought
North South transport corridor in which Russia is an to allay Chinese concerns and the Malabar exercise was
important player. made bilateral.
• The grouping can also play an important role in bringing • After 2007 Australia ceased to participate. Japan joined
peace in Afghanistan which is crucial for India’s regional the Malabar exercises as a permanent member in
stability. 2015.
• This group will also help India in pursuing its interest in • With China’s growing military strength and its increasing
the Arctic region due to the opening up of the routes presence in the Indian Ocean, Malabar exercise has
because of global warming. assumed greater importance.
• It is a reflection of India following the principle of Non – • The Malabar exercise enhances India’s credibility in the
alignment and counters the perception that India is tilting maritime domain and prioritizes collective effort to secure
towards USA. the first of the three global commons (oceans, space, and
cyberspace).
87
►N
NEPAL PO
OLITCAL MAP
M western branch, which will
w mean thee territory of Kalapani
is with Nepal.
• Nepal’s Parliiament passsed the Sec ond Constitu utional
Amendment
A wherein it inccluded territo
ories of Indian
n state
of
o Uttarakhand ie Lipulekh, Kalapani and Limpiya adhura ►ISRAEL
► UAE AGR
REEMENT
into its territo
ory. Nepal has claimed tha at according to treat • The Israel--UAE Peace agreement
a (A
Also called A
Abraham
of
o Sugauli, it has
h claim over the area. Accord) ma
aking UAE the third Arab co
ountry after E
Egypt and
• India has ou utrightly denied this deci sion of Nepal and Jordan to formalize
f diplomatic ties w
with Israel. A
Also, UAE
claims
c the are
ea to be its so
overeign territtory. will be the first
f Persian Gulf
G country to
o do so.
• The
T move ca ame after Ind dia commissi oned a perm
manent • After the signing of the agreement, Israel has su
uspended
road via lipule
ekh to lake Mansarovar in China. plans for an
nnexing partss of West Bankk region of Pa
alestine.
• Territorial
T disspute with Nepal:
1. Region of Kala
apani and con
ntiguous area
as east of the river
Kali HISTO
H ORY & CULT
TURE OF
2. Region close to
t Susta river close to Utta
ar Pradesh and
d
Bihar border (West Champ paran District,, Bihar) INDIA
I
►NEW
► CIR
RCLES OF
F ARCHAE
EOLOGICA
AL
SURVEY
S OF
O INDIA
Ministry
M of Culture has decided to const itute 7 new ciircles of
Archaeologica
A al Survey of India (ASI). Min istry of Culture is the
administrative
a e ministry in charge
c of ASI.
THE
T 7 NEW CIIRCLES FORM
MED BY ASI AR
RE:
1. Trichy
2.
2 Raiganj
3.
3 Rajkot
4.
4 Jabalpur
5.
5 Jhansi
6.
6 Meerut
TRE
EATY OF SUG
GAULI (1816)
7.
7 Hampi whicch was earlierr a mini circle has been con
nverted
• It was treat signed
s betwee
en East India Company an
nd King into full-fled
dged circle
of
o Nepal follo
owing the Ang
glo-Nepalese War. The Ne
epalese
STATES
S WITH MORE THAN
N ONE CIRCLEE:
side
s lost the war and had to cede ce
ertain territorry. The
1.
1 Karnataka
a: Bangaluru and
a Hampi
treaty
t marke
ed the territo
orial boundarries of present day
Nepal. Sugauli is located in
n Champaran district of Bih
har. 2.
2 Tamil Nadu: Madras and Trichy
• According
A to the
t treaty: 3.
3 West Beng
gal: Kolkata an
nd Raiganj
1. The
T treaty marked the we
estern bound ary of Nepal as the 4.
4 Madhya Prradesh: Rajko
ot and Vadodaara
Kali river. 5.
5 Uttar Prad
desh: Jhansi, Meerut,
M Agra, Lucknow, Sarrnath
2. The
T territory east of Mecchi river belo
ongs to Britissh East ABOUT
A ARCHAEOLOGICAL
L SURVEY OF INDIA
Company.
C Hence, Kali riv
ver and Mecchi river mark the ASI
A is the prem
mier organisation for the a rchaeologicall
western
w and eastern
e boundary of Nepa l, respectivelyy. researches
r and protection of cultural heeritage of India.
• However, the
e treaty doe
es not clearlyy say the po
oint of Maintenance
M of
o ancient mo
onuments and
d archaeological sites
origination
o of Kali river. The
T kali riverr is formed b
by two and
a remains of
o national importance is p
prime concern
n of ASI.
tributaries
t on
ne starting at Limpiyadhurra and other at Kali • It regulatess all archaeolo
ogical activitiees as per provvisions of
Temple
T near Kalapani. India accepts the
e eastern bra
anch as Ancient Monuments
M and Archae
eological Sittes and
original
o river of Kali, whille Nepal callss for accepting the Remains Act,
A 1958.

CIAL EDITION
N) for CSE 20020
88
• It also regulates the Antiquities and Art Treasure Act, • Putting the Buddhist principles of welfare of all sentient
1972. beings in practice for preservation of the environment and
• For the maintenance of ancient monuments and nature conservation.
archaeological sites it is organised into circles. • Fostering and engaging interfaith dialogue, exchange,
• Alexander Cunningham was appointed as the first collaboration and understanding
Archaeological Surveyor from 1861 by Canning. • Deepening understanding among different Buddhist
traditions
►150TH ANNIVERSARY OF • Facilitating constant dialogue between Buddhism and
modern sciences
ABANINDRANATH TAGORE
• He is an important figure in modern Indian art. He painted
a range of subjects.
►ASHADHA PURNIMA
• He had a leaning towards painting images with historic • IBC is celebrating Asadha Purnima in partnership with
and literary allusions. Ministry of Culture. It will be the annual flagship event of
IBC.
• He liked to paint sets of images dealing with a theme or a
text such as the 'Arabian Nights' and the 'Krishna • The auspicious day of Asadha Poornima which falls on the
Leela'. first full moon day of the month of Asadha as per Indian
sun calendar is also known as Esala Poya in Sri Lanka and
• He also enjoyed painting theatrical subjects.
Asanha Bucha in Thailand. It is the second most sacred day
for Buddhists after the Buddha Poornima or Vesak.
►INTERNATIONAL BUDDHIST
• The day marks Buddha's first teaching after attaining
CONFEDERATION (IBC) Enlightenment to the first five ascetic disciples
• At the Global Buddhist Congregation organised in New (pañcavargika) on the full-moon day of Asadha at ‘Deer
Delhi by Buddhist organisations and institutions from Park', Ṛiṣipatana in the current day Sarnath, near Varanasi,
around the world a resolution was adopted to form an India. This teaching of Dhamma Cakka- PavattanaSutta
international umbrella body - International Buddhist (Pali) or Dharma chakra Pravartana Sutra (Sanskrit) is also
Confederation. The purpose of the body is to create a role known as the First Turning of Wheels of Dharma and
for Buddhism on the global stage so to preserve Buddhist comprised of the Four Noble Truths and Noble Eightfold
heritage, knowledge and promote and represent a united Path.
front for Buddhism to enjoy meaningful participation in • The Rainy Season retreat (Varsha Vassa) for the Monks and
global discourse. Nuns also starts with this day lasting for three lunar
• It is headquartered in New Delhi. months from July to October, during which they remain in
• Council of Patrons is the highest decision making body of a single place, generally in their temples dedicated to
the IBC. It is a permanent body and includes Patrons the intensive meditation. They are served during this period by
supreme religious heads of the Sanghas of various lay community who also observe Uposatha i.e. to observe
traditions and countries. eight precepts and meditate under the guidance of their
teachers.
AIMS AND OBJECTIVES
• The day is also observed as Guru Poornima by both
• Leading a united voice to all Buddhist organisations,
Buddhists and Hindus as a day to mark reverence to their
towards addressing and engaging in issues of common
Gurus.
global concern
• Conserving Buddhist practices, traditions and heritage
►MONGOLIAN KANJUR
worldwide and exploring Buddhist cultural assets.
Ministry of Culture has taken up a project of reprinting
• Acting united against all forms of violence and propagating
Mangolian Kajur under the National Mission for Manuscripts.
compassion and the concept of interdependent nature to
foster true peace in the world. ABOUT MONGOLIAN KANJUR
• They are buddhist canonical text in 108 volumes. They are
considered to be the most important religious text of
Mongolia.
89
• In the Mongolian language, Kanjur means Concise Orders: target Golconda Fort. The tomb’s lower storey was used as
the words in Buddha in particular. stables for the mughal army horses.
• It is held in high esteem by the Mongolian Buddhists and
they worship the Kanjur at temples and recite the lines of ►NUAKHAI JUHAR
Kanjur in daily life as a sacred ritual. The Kanjur are kept It is an agricultural festival celebrated in the Odisha
almost in every monastery in Mongolia.Mongolian Kanjur (principally) and some parts of Chhattisgarh. Nua means new
has been translated from Tibetan. The language of the and Khai refers to food. The festival thus celebrates newly
Kanjur is Classical Mongolian.The Mongolian Kanjur is a harvested food by farmers.
source of providing a cultural identity to Mongolia.
►BON-BIBI PALAGAAN
►NATIONAL MISSION FOR MANUSCRIPTS Bon bibi is the forest goddess of Sundarban region. Bon-Bibi
• It is national mission launched by Ministry of Culture in Palagaan is the musical dance drama which is popular in the
2003. It seeks to unearth and preserve vast manuscript Sundarban region.
wealt of India.
• The Mission has the mandate of identifying, documenting, ►RECENT GEOGRAPHICAL INDICATIONS
conserving and making accessible the manuscript heritage
of India. Jammu & Kashmir
Kashmir Saffron
(Agricultural)
►CULTURAL HERITAGE OF HYDERABAD Thanjavur Pith Works Tamil Nadu (Handicraft)

Muhammad QuliQutb Shah established Hyderabad in 1591 to
Arumbavur Wood Carvings Tamil Nadu (Handicraft)
extend the capital beyond the fortified Golconda. In 1687, the
city was annexed by the Mughals. In 1724, Mughal governor Telia Rumal Telangana (Handicraft)
NizamAsaf Jah I declared his sovereignty and founded the
AsafJahi dynasty, also known as the Nizams. Hyderabad Sohrai-Khovar Painting Jharkhand (Handicraft)
served as the imperial capital of the AsafJahis from 1769 to
1948. As capital of the princely state of Hyderabad, the city
housed the British Residency and cantonment until Indian
independence in 1947.
IMPORTANT CULTURAL SITES OF HYDERABAD:
1. Golconda Fort
2. Chowmahalla Palace: This palace was built by Asaf Jahi
dynasty in Hyderabad. It was the seat of power of Nizams.
It has bagged UNESCO Asia-Pacific Heritage Merit Award
for cultural heritage conservation.
3. Charminar: The monument was erected by Quli Qutab
Shah shifted his capital from Golconda to Hyderabad. The
monument got its name from its structure as it consists of
four minarets.
4. Mecca Masjid: One of the oldest and the largest mosques
of India is the grandest historical places in Hyderabad was
completed by Aurangazeb in 1693.The bricks used here
are believed to be from Mecca, and hence the name.
5. Qutab Shahi Tombs: Located in the Ibrahim Bagh,
QutubShahi Tombs are a group of small and big mosques
and tombs built by the rulers of the Qutub Shah dynasty.
The tombs are all built on a raised platform and have a
dome-shaped structure. The little historical places in
Hyderabad are single-storeyed while the bigger ones are
double storeyed. The site was used by the mughal army to
90

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CONTENTS

►PERSONS WITH DISABILITIES ENTITLED TO SAME

CURRENT AFFAIRS 02 ►DRUG CONTROLLER GENERAL OF INDIA (DCGI) 10

►POWER OF SPEAKER TO SUSPEND MEMBERS OF ►“OPERATION SHIELD” LAUNCHED BY THE DELHI

INDEX AND REPORTS 20 ►NATIONAL PENSION SYSTEM 38

ND ►RECENT CHANGES IN FDI POLICY 39

REPORT & INDICES 53 ►PROJECT LION 66

IMPORTANT EVENTS 58 ►SUNRISE MISSION 70

►DEEPFAKE 76 ►INTERNATIONAL ATOMIC ENERGY AGENCY (IAEA) 86

►SWADESHI MICROPROCESSOR CHALLENGE 76 ►RIC TRILATERAL GROUPING 87

►'TRAVEL BUBBLE' ARRANGEMENT 76 ►NEW ORIENTATION FOR REFORMED MULTILATERAL

►IMPORT EMBARGO ON 101 DEFENCE ITEMS 76 ►ISRAEL UAE AGREEMENT 88

►DECARBONIZING TRANSPORT IN EMERGING ECONOMIES ►NATIONAL MISSION FOR MANUSCRIPTS 90

months, or with fine which may extend to Rs 2,000, or

►PUDUCHERRY LT. GOVERNOR

1894 • Accordingly, Parliament enacted the Government of

• Whereas reservations in favour of physically handicapped ο Entry 18: Land

4. Voting by certain classes of persons determined by EC. IMPORTANCE OF SECRECY OF BALLOT

A five-judge constitution bench struck down a government order

►RIGHT TO RESERVATION IS NOT A EXPLANATION

WRIT JURISDICTION caste group could constitute a special class.

ο Oversee the quality of service of the professions

►NATIONAL COMMISSION FOR • A high-level committee for proper management of water

PROGRAM (TULIP) • Technical support for the platform shall be anchored by

►PANCHVATI YOJANA LAUNCHED ►STATE HEALTH REGISTER TO BE

• The Operation SHIELD will be implemented in 21

►NITI AAYOG LAUNCHES “SURAKSHIT

►SPECIAL WINDOW FOR AFFORDABLE

VOLUNTARY NATIONAL REPORT • According to World Health Organization, maternal death is

3. Graduation Outcomes (GO) • 1st rank- Norway

4. Outreach and Inclusivity (OI)

• University wise Ranking EXPLAINED

• Engineering • The survey conducted by the International Budget

• Dental • New Zealand has gained the highest score of 87.

►GLOBAL NUTRITION REPORT ►FREEDOM IN THE WORLD 2020 REPORT

ο Rate of overweight and obesity continues to rise,

RBI AND MONETARY

POLICY New Announcement: The RBI conducted targeted long-

May) for the classification of NPA. So, if a company continues

RAU’S IAS FOCUS SPEC

RAU’S IAS FOCUS SPEC

MINERAL SECTOR POWER SECTOR

RAU’S IAS FOCUS SPEC

• Champion Sectors: As part of Make in India, Government

►RECENT CHANGES IN FDI POLICY

UNDERSTANDING FOREIGN DIRECT INVESTMENT

DEBT • Denomination of Debt: US dollar

• Increase in FPI Inflows:: In March 2 2020, the FPIs had Due

RAU’S IAS FOCUS SPEC

RAU’S IAS FOCUS SPEC

BANKING • Help the banks in terms of developing business strategies

RAU’S IAS FOCUS SPEC

RAU’S IAS FOCUS SPEC

RAU’S IAS FOCUS SPEC

RAU’S IAS FOCUS SPEC

The Initial capital

►CHAMPIONS PORTAL FOR MSMEs • Experiments of CBDC in other Countries:

►ENERGY TRANSITION INDEX (ETI) ►WORLD UNCERTAINTY INDEX

• In the coastal states category: Gujarat emerged as the best