Daily Current Affairs - Civil Services - 24-05-2021

Useful compilation of Civil Services oriented - Daily Current Affairs - Civil Services - 24-05-2021

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• SECTION 1 - TEN NEWS HEADLINES

1. World Politics - US's Guantanamo Bay detention camp - The administration of US President Joe Biden declared its intention to shut down the Guantanamo Bay detention camp. This camp is a United States military prison, located within Guantanamo Bay Naval Base, also referred to as Guantánamo, or "Gitmo", on the coast of Guantánamo Bay in Cuba. As of January 2021, 731 of the 780 people detained were transferred, 40 remain and 9 died while in custody. The camp was established by US President George W. Bush's administration in 2002 during the War on Terror following the September 11, 2001 attacks. The camp was repeatedly condemned by international human rights and humanitarian organizations—including Amnesty International, Human Rights Watch, and the International Committee of the Red Cross—as well as by the European Union and the Organization of American States (OAS), for alleged human rights violations. Violations of international law at Guantánamo include illegal and indefinite detention, torture, inhumane conditions, unfair trials (military commissions), and many more. These human rights violations, however, remain unpunished or remedied.
2. Indian Economy - New rules notified under the Insurance Act - As per new rules notified under the Insurance Act, Indian promoters of insurance joint ventures with foreign partners will no longer be able to nominate a majority of the board members. This follows the recent amendments to enhance the foreign direct investment (FDI) limit in the insurance sector from 49% to 74%. But a majority of board members, key management persons (KMP) need to be resident Indian citizens. Also, at least one of the three top positions — the chairperson of the board, the MD and CEO – need to be resident Indian citizens. This new norm will apply to all insurers, irrespective of the stake held by the foreign partner. Further conditions have also been specified on the composition of the board for firms where foreign investors’ stake exceeds 49%. While the rules are a step forward for enabling fresh investments in the insurance sector, more changes are needed before transactions can begin. The significant change introduced is the deletion of the requirements pertaining to Indian ownership and control, irrespective of whether the insurer has majority foreign ownership or not. (Previously, Indian promoters or investors were required to nominate a majority of the Board)
3. Environment and Ecology - World Bee Day - May 20 is observed as World Bee Day annually. The 2021 theme was - “Bee Engaged – Build Back Better for Bees”. Efforts by the Indian government include promoting beekeeping as part of its aim to double farmers’ income. The Government has allocated 500 crores towards Beekeeping under the Atmanirbhar Abhiyan. The National Bee Board has created four modules to impart training as part of the National Beekeeping and Honey Mission (NBHM). 30 lakh farmers have been trained in beekeeping. They are also being financially supported by the Government. The Government has launched ‘Honey Mission’ as part of ‘Sweet Revolution’. India is among the world’s top five honey producers. Compared to 2005-06 honey production has risen by 242% and exports have increased by 265%. As per Food and Agricultural Organization database, in 2017-18, India ranked 8th in the world in terms of honey production (64.9 thousand tonnes) while China stood first (551 thousand tonnes). Although bees have hairs on their bodies as mammals do, and are part of the animal kingdom, bees are not mammals but are insects. Mammals are warm-blooded vertebrates with mammary glands for feeding milk to their young. There are three types of honey bees within a hive: the queen, the workers, and the drones. A queen bee is the only female bee in the hive that gets to reproduce.
4. Healthcare and Medicine - Amphotericin-B for black fungus - Several States and UTs reported a shortage of Amphotericin-B drug that is used for treatment of the Mucormycosis or Black Fungus disease (a form of COVID complication). Amphotericin B is an antifungal medication that is used to treat serious fungal infections in neutropenic patients, cryptococcal meningitis in HIV infection, and leishmaniasis. It was isolated from Streptomyces nodosus in 1955 and came into medical use in 1958. It is typically given by injection into a vein. It slows down the growth of fungi that cause infection. It is listed in the World Health Organization’s (WHO’s) List of Essential Medicines, the safest and most effective medicines in a health system. It is also available as a generic medication. India has reported an outbreak of black fungus disease, followed by minor cases of white fungus and one case of yellow fungus also. Yellow fungus infection is mainly caused by bad hygiene. It is very important to clean out the enclosure around your home and keep it as clean as possible. Remove old foods and fecal matter as soon as possible to help prevent the growth of bacteria and fungus.
5. Environment and Ecology - Study on Arctic tundra - A study found that the warming Arctic tundra will make it harder for the world to curb climate change, as its long-frozen soil releases the carbon dioxide and methane trapped in them. They are released as the temperature rises, and permafrost thaws and wildfires release greenhouse gases that aren’t fully accounted for in global emissions agreements. The deeper the thaw, the more gas is released. That threatens to create a feedback loop that contributes to even more warming of the atmosphere. The researchers estimate that fires along with abrupt thawing events could increase carbon emissions up to 40% by the end of the century. These events would blow the global "emissions budget" unless fossil fuel emissions are drastically reduced. [Emissions budget is a scientific estimation of how much more the world can emit before average global temperatures rise more than 1.5 Celsius beyond pre-industrial levels (2015 Paris Agreement).]. In total, scientists say permafrost holds twice as much carbon as what is already in the atmosphere.
6. Indian Economy - Rise in currency with public - As per Reserve Bank of India (RBI), in the fortnight ending May 7, 2021, the currency with the public rose by Rs 35,464 crore to hit an all-time high of Rs 28.39 lakh crore. The currency with the public has been rising over the last 14-month period, since the pandemic broke out. Between March and June 2020, people withdrew cash heavily from banks in the wake of lockdown as dependence on cash transactions rose. Its pace slowed after July 2020, in one with decline of cases. However, it gathered momentum in February 2021 as the cases started rising. Also, in the festive months of October and November, the currency with public had risen. Since the government announced demonetisation on November 8, 2016, the currency with public has risen by 58 per cent. Traditionally, it has been seen that an uncertain environment leads to increase in cash holding by public. As the second wave of Covid pandemic started spreading and daily fresh cases rose exponentially in the first week of May, public grew anxious about announcement of stringent lockdown by the central government. Also, many individuals are withdrawing cash to meet any urgent cash requirements in case of a health emergency in the current times. In many cases as people have lost jobs or have seen a cut in their salaries, they are dipping into their bank savings to meet their monthly expense.
7. Governance and Institutions -  E-Courts Services Mobile App - Supreme Court of India's E-Committee released a manual for its top citizen-centric service-free "e-Courts Services Mobile app" in 14 languages. The app is available in English, Hindi, Assamese, Bengali, Gujarathi, Kannada, Khasi, Malayalam, Marathi, Nepali, Odia, Punjabi, Tamil and Telugu. The "e-Courts Services Mobile app" aimed to benefit litigants, citizens, lawyers, law firms, police, government agencies and other institutional litigants has so far crossed 57 lakh downloads. The App which acts as a personalized digital case diary with case details available on handset at any hour of the day and free of cost. Dr Justice Dhananjaya Y Chandrachud, Judge, Supreme Court of India and the Chairperson of e-Committee, fore-worded the manual and stressed the importance of this free mobile app and highlighted the reach of this citizen-centric mobile app .
8. Social Issues - Gujarat Love Jihad law - The Gujarat Governor has given his assent to the Gujarat Freedom of Religion (Amendment) Bill, 2021, which has been projected as the “anti-love jihad” Bill. The Bill was passed in the state assembly during the budget session held in March 2021. The Gujarat Freedom of Religion (Amendment) Bill 2021 proposes punishment of 3-10 years in jail for forcible or fraudulent religious conversions through marriage. The bill amends the Gujarat Freedom of Religion Act, 2003. The amendment aims to reduce the “emerging trend” where women are “lured to marriage” for the purposes of religious conversion. The 2003 act dealt with religious conversions through “force or by misrepresentation or by any other fraudulent means”. The amendment bill mentioned promises of a better lifestyle, impersonation, and ‘divine blessing’. The states of Madhya Pradesh and Uttar Pradesh also enacted similar “anti-love jihad” laws that banned “fraudulent” conversions through marriage.
9. World Economy - Crypto market updates - (i) A plot of land in US was recently sold for 1,60,000 Dogecoin, worth about $50,000 at the time of the deal. Dogecoin Co-founder Billy Markus said "he thought it was pretty darn cool." This is believed to be the first real estate deal negotiated with meme-inspired cryptocurrency Dogecoin. (ii) Cryptocurrency investors lost $748 billion in the last seven days, according to data from CoinGecko. The total value of 7,459 cryptos (tracked) plummeted 33% from nearly $2.25 trillion as of May 16 to $1.50 trillion on May 23, data revealed. Bitcoin's price contracted by 27% during the period from $48,696 to the week's lowest at $34,224 before increasing to $35,487. (iii) Cryptocurrency exchange Huobi has stopped its miner hosting services in mainland China following warnings from China that it would crackdown on cryptocurrency mining. (iv) The widespread adoption of central bank digital currencies (CBDCs) may be disruptive for financial systems if associated risks are not managed, Fitch Ratings said. CBDC's key benefit lies in the potential to enhance authority-backed cashless payments, it added. Fitch also said that some advocates see it as a way to address challenges presented by the declining use of cash.
10. Indian Politics - Covid Update - India became the third nation after US and Brazil to cross the 3 lakh COVID-19 deaths mark. It recorded 4,454 more deaths reported in last 24 hours. The daily number of cases dropped to 2,22,315, marking a steady trend. With this, India has reported a total of 2,67,52,447 COVID-19 cases and 3,03,720 deaths so far. AIIMS chief Guleria has claimed that in Covid, children have suffered collateral damage due to mental stress, smartphone addiction, and education challenges. A total of 14.56 crore (1st & 2nd doses) vaccines have been administered to people above 45 years of age. While 1.06 crore vaccines (1st dose) has been administered to people b/w 18 & 44 years of age. The WHO chief said he wanted Covid vaccination of 10% in every country by September. The RDIF and Panacea Biotec launch the production of Sputnik V in India. India's Panacea Biotec now to produce 100 million doses of Sputnik V per year. Bhutan Prime Minister Lotay Tshering has expressed concern over the prevailing threat of Covid-19 in the country and said: "We will be wiped out if we can't control the virus now." The SC said that process for registration of migrant workers, directed by the court in 2020, was woefully slow and that it will issue directions on this to Centre and states. However, Justices Ashok Bhushan & M R Shah said it won't order cash transfers which is a policy decision. NUMBERS - INDIA - Total cases: 26,751,681; New cases: 222,835; Total deaths: 303,751; New deaths: 4,455; Total recovered: 23,720,919; Active cases: 2,727,011.

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• SECTION 2 - DAILY CURRENT AFFAIRS

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• 1. ECONOMY (Prelims, GS Paper 3, Essay paper)

Indian companies making record profits

• The story: The apparent truth is Covid, and the balance sheet truth reads "profits". Despite the Covid-19 crisis hitting India hard, most large businesses suffered limited impact as they remained resilient in the three months to March 2021. This is visible from corporate earnings figures. Performance of companies in the Q3 of FY 2020-21 reveals a dramatic improvement, after a long period of earnings recession.

• Data and learning: An analysis of major listed companies showed that net sales and net profit were at over a 25-quarter, or six-year high in Q4FY21.

1. Net sales of the companies grew 25.71% year-on-year in the quarter, compared to a fall of 8.64% Y-o-Y, and rose 10.95% compared to the previous three months. (The analysis excluded banking, financial services and insurance (BFSI), and oil and gas companies, as they follow a different revenue model)
2. The metals sector, biggest beneficiary of the robust global rally, contributed majorly to the overall improvement in corporate earnings. The low base of the year-ago period, recovery in consumer demand and cost cutting measures by companies led to the strong rebound in earnings.

• Reasons for robust earnings: First was a benign base, so operating leverage happened. Second was cost rationalization, with most sectors doing it and enjoying higher profitability. Third was higher commodity prices that aided the metals sector. But steep commodity inflation has shrunk the margins of companies in sectors such as automobiles, consumer durables and fast-moving consumer goods (FMCG), while a few of them offset the impact with price hikes.
• Inflation: The three months ended March saw sharp commodity inflation with steel prices rising over 15%, and key metals, such as copper and aluminium up by 13% and 11%, respectively. Crude prices were up by 23%. The Information Technology (IT) and cement sectors showed firm March quarter earnings, while a few continued to see sluggish business.
• So who is crying: The real impact of lockdowns and restrictions is now visible in the vast unorganized sector, which is not represented by the Nifty indices. The formalization of the economy has gained pace in this Covid crisis, and larger companies have got the benefit of increased market share and revenues. That explains the rise in corporate earnings, too. Some sectors have faced a massive brunt, like movie theatres, restaurants, retail, hotels and travel, which also are not represented well in leading stock indices. The adverse impact on manufacturing sector was limited this time as labour migration and supply chain were relatively lesser impacted.
• Summary: The Securities and Exchange Board of India (Sebi) extended the deadline for listed Indian firms to announce their financial results in view of the second wave. Despite the localized lockdowns and rural India getting deeply impacted by the second wave, analysts largely remain hopeful of earnings momentum to continue. It is quite clear that Indian economy is getting restructured in a K-shape format, with clear winners and losers. The problem is simple, and profound: the losers are where most of India is employed. But that problem is nobody's baby, for now.

A massive Rs.2,00,000 crore GST cess gap arriving

• The story: The government is anticipating goods and services tax (GST) collection to fall below Rs 1 trillion in June 2021, which will be the first time in nine months, due to Covid disruption. That means the compensation to states will exceed cess collection for the second year in a row.
• Details: The GST compensation of states may widen to Rs 2.5-3 trillion in FY22 as against the cess collection of Rs 1 trillion estimated in the Budget. It is higher than Rs 2.35 trillion compensation requirement estimated last year by the Centre for FY21. The cess collection may fall short by Rs 1.5-2 trillion as compared to the compensation requirement, suggesting that the government may again need to borrow from the markets to fill the gap like in 2020.
• New strategy: The Centre may agree to borrow part of the shortfall due to GST implementation and not due to Covid-19 under the special window and give to states as back-to-back loans, like in 2020. The slowdown in e-way bill generation in April and May 2021 showed a nearly 30 per cent decline in collection in May against April and collection may fall below Rs 1 trillion in June. There is lack of economic activity in industrial states. Demand may show some pickup from July, which will show up in GST collection later. Recovery will hinge on opening up in producing states like Karnataka, Maharashtra, and Tamil Nadu.
• GST Council meet: After a long break of 6 months, the GST Council is meeting soon, and will discuss the issue. As earlier, government will bifurcate the shortfall (a process many states objected to) into "due to Covid-19" and "due to GST implementation". Government worries that borrowing the entire amount of shortfall would impact yields.

1. The state GST inflows are estimated to be twice those of last year in the first quarter at Rs 1.7 trillion, but a GST compensation requirement of Rs.2.5-2.7 trillion for FY22 is being seen clearly.
2. So, overall, the GST compensation requirement may finally be also aruond Rs.3 trillion, of which only Rs.1 trillion may be collected by way of compensation cess, leaving a gap of Rs.2 trillion.
3. GST collection in the first half of FY22 is expected to continue double-digit growth performance.

• The cess promise: Indian states were promised compensation for five years after GST implementation in July 2017, assuming a 14 per cent annual growth rate since states lost autonomy over indirect taxes. The compensation cess is levied on a few items in the 28 per cent GST slab such as automobiles, cigarettes, and aerated drinks. But since 2020, the Centre had estimated a cess shortfall of Rs 2.35 trillion for 2020-21. Of the amount it attributed Rs.1.1 trillion to GST implementation and the rest to Covid. Centre offered a special borrowing window of Rs.1.1 trillion and the states were additionally allowed to borrow by 0.5 per cent of their respective state GDP from the markets. Centre had proposed two options. First, borrowing Rs.1.1 trillion, where the interest cost will be paid through the extended cess period, or borrow the full Rs.2.35 trillion, where the cess will be used for paying only the principal, not the interest. Government released Rs.70000 crore to states as on March 2021 for FY22 of Rs.85500 crore collected by way of cess.

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• 2. ENVIRONMENT AND ECOLOGY (Prelims, GS Paper 3, Essay paper

International Day for Biological Diversity

• The story: The International Day for Biological Diversity (IDB) (International Biodiversity day) is observed on 22nd May every year.
• Points to note: The United Nations General Assembly (UNGA) in 1993 proclaimed 22nd May as IDB to increase understanding and awareness of biodiversity issues. It also declared the period 2011-2020 as the United Nations (UN) Decade on Biodiversity to promote the implementation of a strategic plan on biodiversity and its overall vision of living in harmony with nature. It declared 2021-2030 as the UN Decade of Ocean Science for Sustainable Development and the UN Decade on Ecosystem Restoration.
• 2021 Theme: This year’s theme is “We’re part of the solution” which is a continuation of 2020 theme - Our solutions are in nature. It serves as a reminder that biodiversity remains the answer to several sustainable development challenges.

• Global initiatives: Since the 1990s, there has been an understanding on the fundamental issue of biodiversity destruction in the world. Consequently, many summits were organised, and decisions taken.

1. Convention on Biological Diversity (CBD) - It is a legally binding treaty to conserve biodiversity that has been in force since 1993. India is a party to the convention.
2. Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES): It provides public, private and non-governmental organisations with the knowledge and tools that enable human progress, economic development and nature conservation to take place together. India is a member of the convention.

• Biodiversity: It is a term used to describe the enormous variety of life on Earth. It can be used more specifically to refer to all of the species in one region or ecosystem. Biodiversity refers to every living thing, including plants, bacteria, animals, and humans. It is often understood in terms of the wide variety of plants, animals and microorganisms, but it also includes genetic differences within each species.
• Concerns: The World Wide Fund for Nature in its flagship Living Planet Report 2020 warned that global biodiversity is in steep decline. It has revealed a global species loss of 68% in less than 50 years, a catastrophic decline never seen before.
• Need for conservation - It boosts ecosystem productivity where each species, no matter how small, all have an important role to play. A larger number of plant species means a greater variety of crops. Greater species diversity ensures natural sustainability for all life forms. The world should conserve it so as to maintain the food chain. The disturbance in the food chain may affect the whole ecosystem.

• Knowledge centre:

1. Endemic species - Some areas in the world, such as areas of Mexico, South Africa, Brazil, the southwestern United States, and Madagascar, have more biodiversity than others. Areas with extremely high levels of biodiversity are called hotspots. Endemic species—species that are only found in one particular location—are also found in hotspots.
2. Keystone species - A keystone species is an organism that helps define an entire ecosystem. Without its keystone species, the ecosystem would be dramatically different or cease to exist altogether. Keystone species have low functional redundancy. This means that if the species were to disappear from the ecosystem, no other species would be able to fill its ecological niche. The ecosystem would be forced to radically change, allowing new and possibly invasive species to populate the habitat.
3. Keystone Mutualists - Keystone mutualists are two or more species that engage in mutually beneficial interactions. A change in one species would impact the other, and change the entire ecosystem. Keystone mutualists are often pollinators, such as bees. Pollinators often maintain gene flow and dispersal throughout widespread ecosystems. In the woody grasslands of Patagonia (at the southern tip of South America) a species of hummingbird and indigenous plants act together as keystone mutualists.

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• 3. FOREIGN AFFAIRS (Prelims, GS Paper 3, Essay paper)

Belarus uses State Power to "hijack" passenger plane

• The story: Perhaps for the first time in history, authorities in Belarus scrambled a fighter jet and flagged what turned out to be a false bomb alert to force a Ryanair plane to land. They then detained an opposition-minded journalist, not a Belarus citizen, making intentions clear.
• Dramatic event: The dramatic incident saw a Soviet-era MiG-29 fighter jet escort a Ryanair-operated passenger plane flying from Athens to Lithuania. The plane was instead suddenly diverted to Minsk, the capital of Belarus, where authorities detained journalist Roman Protasevich who had been on board. The flightradar24.com website showed the plane was diverted just two minutes before it was due to cross into Lithuanian airspace from Belarus. Lithuanian President Gitanas Nauseda called for an international response.
• State terrorism: EU member state Lithuania, where Roman Protasevich is based, urged the European Union and NATO to respond. Germany called for an immediate explanation and Poland's prime minister called it a "reprehensible act of state terrorism". Ms. Ursula von der Leyen, the head of the European Commission, said Belarus's action was "utterly unacceptable", while British foreign minister Dominic Raab said there would be serious implications for what he called "outlandish action." Belarusian opposition leader Sviatlana Tsikhanouskaya, who like Protasevich operates from Lithuania, called on the International Civil Aviation Organization (ICAO) to kick Belarus out of the organisation.
• A desperate Lukashenko: The incident is certain to worsen already dire relations between the West and Belarus, which has been tightly controlled since 1994 by President Alexander Lukashenko. Opponents accuse him of rigging a presidential election in his own favour last year and of then cracking down violently on the opposition. He denies electoral fraud.
• The man: Protasevich, 26, worked for an online opposition news service NEXTA, a Telegram channel that broadcast footage of mass protests against Lukashenko in 2020 at a time when it was hard for foreign media to do so. Protasevich, who now works for a different Telegram channel called Belamova and who describes himself on Twitter ironically as the first "journalist-terrorist" in history, is based in Lithuania. He is wanted in Belarus on extremism charges and stands accused of organising mass riots and of inciting social hatred, allegations he denies. It emerged that Lukashenko had personally ordered the warplane to escort the Ryanair plane to Minsk. No explosives were found.
• Belarus unrest: Around 35,000 people have been detained in Belarus since August, human rights groups say. Dozens have received jail terms. Authorities say that more than 1,000 criminal cases have been launched.
• History of the crisis: Belarus was earlier known as Belorussia or White Russia. It became independent in 1991, and was the smallest of the three Slavic republics in the Soviet Union (the larger two being Russia and Ukraine). Like Ukraine, this nation of 9.5 million is caught in rivalry between the West and Russia. President Lukashenko, an ally of Russia, is called "Europe's last dictator" and is in power for 26 years. He uses censorship and police crackdowns against opponents. A huge opposition movement started in 2020, demanding new, democratic leadership and economic reform. Allegations are that Lukashenko rigged the 9 August election but officially won by a landslide. His fans say his toughness has kept the country stable.

Foreign affairs updates

• Israel's political situation: A potential coalition deal to oust Benjamin Netanyahu as Israeli prime minister is back on, as Naftali Bennett, the leader of the right-wing Yamina party, resumed talks with the centrist Yesh Atid party. If a deal is struck, Bennett will reportedly be first in line for prime minister in a rotation arrangement. Bennett had previously withdrawn from negotiations with Yesh Atid during Israel’s 11-day conflict with Hamas. A cease-fire, now in its fifth day, still holds.
• Turkey’s drones: Poland become the first NATO member to purchase Turkish drones. The contract for 24 armed Bayraktar TB2 drones is due to be signed by Polish President Andrzej Dda when he travels to Turkey. The sale underlines Turkey’s status as the world’s fourth largest drone producer and comes after its unmanned aircraft were seen as crucial in securing victory for Azerbaijan in its war with Armenia in 2020.
• Outrage against Belarus: Outraged U.S. and EU leaders are considering sanctions against Belarus after it scrambled a fighter jet to forcibly divert a Ryanair flight headed to Lithuania—forcing it to land instead in the Belarusian capital, Minsk, in order to arrest a dissident. The decision to ground the Vilnius-bound flight was reportedly made directly by Belarusian President Alexander Lukashenko, using the pretext of a bomb threat on board. Ryanair’s CEO told Irish media that Belarusian intelligence agents were reportedly on board. One immediate action Western leaders could take would be to ban all air traffic over Belarus, a move suggested by the leaders of eight countries.
• India's vaccine purchases: The Centre’s vaccine policy comes a cropper every day. It asked states to bargain independently and source their own vaccines. Now, Moderna has declined Punjab’s request to sell directly to the state. Earlier, Pfizer had also said it wanted to deal with the Centre. The Delhi government has met with a similar response. As the virologist Gagandeep Kang said, “The rest of the world has been buying vaccines at risk for a year, so where’s the supply for us to go now and say we want to buy vaccines?” The government has virtually ruled out the possibility of using compulsory licensing to ramp up vaccine production due to “implementation challenges”. Why the IP and manufacturing recipe for Covaxin can’t be shared with other Indian companies given that the Indian Council of Medical Research helped Bharat Biotech develop it is a mystery.
• Big cat roaring: Madhya Pradesh’s Kuno National Park will get eight African cheetahs as part of India’s first inter-country big cat relocation project. The translocation of the big cats from South Africa begins more than a decade after the proposal was first mooted in 2010 by the Centre. The Asiatic cheetah was declared extinct in India in 1950.

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• 4. GOVERNMENT SCHEMES (Prelims, GS Paper 2, Essay paper)

National Financial Reporting Authority

• The story: India's NFRA - National Financial Reporting Authority - is in the process of creating a verified and accurate database of companies (Public Interest Entities) and auditors that come under the regulatory ambit of it.

• Details: In this regard, the NFRA has been engaging with the Corporate Data Management (CDM) division of the Ministry of Corporate Affairs (MCA) and three recognised stock exchanges in India.

1. Constitution - The NFRA was constituted in 2018 by the Government of India under section 132 (1) of the Companies Act, 2013. It is an audit regulator.     Its account is monitored by the Comptroller and Auditor-General of India. It is headquartered in New Delhi.
2. Why - The decision to constitute the NFRA was taken after the role of auditors and the Institute of Chartered Accountants of India came under the scanner for alleged lapses in various corporate scams including that at the Punjab National Bank.
3. Structure - It consists of a chairperson, who shall be a person of eminence and having expertise in accountancy, auditing, finance or law, appointed by the Central Government and such other members not exceeding 15.
4. Functions - It recommends accounting and auditing policies and standards to be adopted by companies for approval by the Central Government. It monitors and enforces compliance with accounting standards and auditing standards. It oversees the quality of service of the professions associated with ensuring compliance with such standards and suggest measures for improvement in the quality of service.

• Powers: It can undertake investigation related to the following class of companies and bodies corporate called Public Interest Entities: Companies whose securities are listed on any stock exchange in India or outside India. Unlisted public companies having paid-up capital of not less than Rs. 500 crores or having annual turnover of not less than Rs. 1,000 crores or having, in aggregate, outstanding loans, debentures and deposits of not less than Rs. 500 crores as on the 31st March of immediately preceding financial year. Insurance companies, banking companies, companies engaged in the generation or supply of electricity. Where professional or other misconduct is proved, it has the power to make order for imposing penalty of —not less than one lakh rupees, but which may extend to five times of the fees received, in case of individuals; and not less than ten lakh rupees, but which may extend to ten times of the fees received, in case of firms.

• Knowledge centre:

1. CAG - The Comptroller and Auditor General (CAG) of India is an authority instituted vide Article 148 of the Constitution of India. He or she is the head of Indian Audit and Accounts Department, and is responsible for safeguarding the public exchequer. The Indian Audit and Accounts Service aids the CAG in the discharge of his/her functions. V. Narahari Rao, a former civil servant was the first CAG who remained in his office from 1948 to 1954. In recognition of his significant contributions to the civil service in India, the government of India awarded him the highest civilian award namely Padma Bhushan in the year 1954. The present CAG is G.C. Murmu (14th CAG).
2. CGA - The Controller General of Accounts (CGA), in the Department of Expenditure, Ministry of Finance, is the Principal Accounting Adviser to Government of India and is responsible for establishing and maintaining a technically sound Management Accounting System. The present CGA is Ms. Soma Roy Burman.
3. SEBI - The Securities and Exchange Board of India (SEBI) is the leading regulator securities markets in India, analogous just like the Securities and Exchange Commission (SEC) in the U.S. SEBI has wide-ranging regulatory, investigative, and enforcement powers, including the ability to impose fines on violators. It is a statutory body, established on the 12th of April, 1992. Present chairperson is Ajay Tyagi.
4. ICAI - The Institute of Chartered Accountants of India set up by an act of parliament. ICAI was established under the Chartered Accountants Act, 1949. The ICAI is responsible and accountable for setting the Standards on Auditing (SAs) to be followed in the audit of financial statements in India. Members of the Institute are known as Chartered Accountants (either Fellow or Associate). However, the word chartered does not refer to or flow from any Royal Charter.
5. FSDC - The Financial Stability and Development Council is a non-statutory apex council under the Ministry of Finance constituted by an Executive Order in 2010. It envisages to strengthen and institutionalize the mechanism of maintaining financial stability, financial sector development, inter-regulatory coordination along with monitoring macro-prudential regulation of the economy. The Finance Minister heads it. Its members are - Governor Reserve Bank of India (RBl), Finance Secretary and/ or Secretary, Department of Economic Affairs (DEA), Secretary, Department of Financial Services (DFS), Secretary, Ministry of Corporate Affairs, Secretary, Ministry of Electronics and Information Technology, Chief Economic Advisor, Ministry of Finance, Chairman, Securities and Exchange Board of India (SEBI), Chairman, Insurance Regulatory and Development Authority (IRDA), Chairman, Pension Fund Regulatory and Development Authority (PFRDA), Chairman, Insolvency and Bankruptcy Board of India (IBBI). The Additional Secretary, Ministry of Finance, DEA, is the Secretary of the Council.

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• 5. POLITY AND CONSTITUTION (Prelims, GS Paper 2, GS Paper 3)

Air India data breach - Legal and financial risks

• The story: In May 2021, India's national airline informed that its passenger processing system, supplied by multi-national information technology company SITA, was a target of a sophisticated cyber attack on February 25, 2021. Nearly 45 lakh “data subjects” registered over a period of 10 years between August 2011 to February 2021 were affected around the world, including passengers of other airlines such as Singapore Airlines, Lufthansa, Cathay Pacific, United Airlines, among others. The attack was on SITA’s servers at its data centre in Atlanta, United States.
• Immediate impact: The breach of passenger data at Air India may pose litigation risks for the airline that could further delay the privatisation process. The national carrier will need to put efforts to contain the damage from the cyber attack by informing passengers about steps they can still take to prevent fraud. A new buyer will be spooked by the fear of unquantified litigation risks. The government may be able to separate past versus future liabilities, but it opens up a new avenue for a discussion with potential bidders.
• What was lost: The extent to which individual airlines were affected due to the cyber attack varied from one airline to another. Some airlines wrote to their passengers saying only passenger names and frequent flyer numbers were stolen. In the case of Air India, the theft pertained to “name, date of birth, contact information, passport information, ticket information, Star Alliance and Air India frequent flyer data (but no passwords data were affected) as well as credit cards data (but no CVV data).”
• How to rectify: Experts suggested that Air India must focus on remedial and protective measures rather than on investigation alone. Air India should be releasing a public advisory either through e-mails or SMSes asking customers to beware of dubious emails, SMSes or calls. Customers must be told to change their passwords and credit and debit cards, to instill confidence. But there was no need to panic,as there was nothing much a hacker could do just by having a passport number in isolation.
• SITA's stand: It said that by global and industry standards, it identified this cyber-attack extremely quickly. The matter remains under active investigation. Each affected airline has been provided with the details of the exact type of data that has been compromised.

Air India data breach - Legal and financial risks

• The story: Various analysts point that in addition to lack of political vision from top leaders, during the Covid crisis, the Indian bureaucracy too emerged as a major concern for the ineffective response to the COVID-19 crisis. This inadequacy was a reflection of the outdated nature of bureaucracy, and an overhaul was in order.
• Working of India's bureaucracy: In the 21st century, democratic countries are still relying on traditional bureaucracies, that perform the roles of public policy formulation and implementation. This traditional bureaucracy prefers a generalist over a specialist. A generalist officer (IAS and State civil service officials) is deemed an expert. Traditional bureaucracy is stuck with the leadership of position over leadership of function, and has become an end in itself rather than a means to an end. The rigid adherence to rules has resulted in the rejection of innovation.
• Performance in COVID-19 crisis: In such a structure, specialists in every government department have to remain subordinate to the generalist officers. The COVID-19 pandemic has exposed this weakness. Healthcare professionals who are specialists have been made to work under generalist officers. The policy options have been left to the generalists when they should be in the hands of the specialists. The justification was that the generalist provides a broader perspective compared to the specialist. Also, under rigid adherence to rules, COVID-19 aid got stuck in cumbersome clearance processes even during the pandemic.
• Alternative: Leadership of function is when a person has expert knowledge of a particular responsibility in a particular situation. The role of the leader is to explain the situation instead of issuing orders. Every official involved in a particular role responds to the situation. They do not rely on some dictation from someone occupying a particular position.
• NPM reform movement: A reform often suggested in India is new public management (NPM). The NPM as a reform movement promotes privatisation and managerial techniques of the private sector. This is seen as an effective tool to seek improvements in public service delivery and governance. But this is not a viable solution, not the least in India where there is social inequality and regional variations in development. It renders the state a bystander among the multiple market players with accountability being constantly shifted, especially during a crisis.
• India's case: The righ administrative reform is the model of new public governance, based on collaborative governance. Here, the public sector, private players and civil society, especially public service organisations (NGOs), work together for effective public service delivery. There is no domination of public bureaucracy as the sole agency in policy formulation and implementation. As part of new public governance, a network of social actors and private players would take responsibility in various aspects of governance.

• Summary: During the pandemic, the civil society is playing a major role in saving lives. As part of new public governance, this role has to be institutionalised. It needs a change in the behaviour of bureaucracy, through -

1. flexibility in hierarchy
2. a relook at the generalist versus specialist debate
3.  an openness to reforms such as lateral entry and collaboration with a network of social actors
4. All major revolutions with huge implications on public service delivery have come through the collaboration of public bureaucracy with so-called outsiders. Examples include the Green Revolution (M.S. Swaminathan), the White Revolution (Verghese Kurien), Aadhaar-enabled services (Nandan Nilekani) and the IT revolution (Sam Pitroda).

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• 6. SCIENCE AND TECHNOLOGY (Prelims, Various GS Papers)

Saving the world’s orange groves

• The story: The 'Citrus-greening disease' is a bacterial infection of citrus-fruit trees, spread by insects called psyllids. It was first recorded a century ago, in China, and has since spread widely. It can be extremely harmful. Within a decade of its arrival in Florida, for example, it had wreaked $4.6bn-worth of damage and reduced yields by 74%. If its spread continues, citrus fruits risk becoming niche products.
• The problem with it: The basic issue is less the bacteria than the host plant’s reaction to them. They are injected when the insects feed on sap-carrying phloem tissues—the parts of a plant’s internal plumbing responsible for transporting sugar around. To stop the bacteria spreading, the plant mounts an immune response which thickens the walls of phloem cells with callose, a polymer made of sugar molecules. In the case of citrus-greening disease this response is overenthusiastic, and the phloem tubes get blocked.

• Battling nature: Attempts to control the psyllids have proved futile. Nor is any way known to halt or reverse infections. One scientist, Anne Simon of the University of Maryland, thinks she may have an answer. Her approach is based on a discovery made in 2013, that a harmless discolouration sometimes seen in the veins of citrus trees is caused by molecules of so-called independently mobile infectious RNA (iRNA).

1. iRNAs are about the simplest self-reproducing structures imaginable. Though virus-like, they have no proteins of their own. Instead, they encode an enzyme called RNA-dependent RNA polymerase, which then churns out copies of the RNA they are composed of.
2. They do need to be able to move from cell to cell in order to spread. To that end, they disguise themselves with plant proteins that let them pass through the passages connecting neighbouring cells.
3. Dr Simon wondered if that mobility might be exploited to carry other molecules around as well. In particular, she has in mind to yoke the iRNA in question to a specially designed string of RNA that would interfere either with the manufacture of the pathogen’s proteins or with proteins involved in manufacturing callose.

• Summary: To develop this idea commercially, she has started a firm called Silvec Biologics. Should it prove successful, which will probably take a decade to determine, she thinks other trees will benefit too. The iRNAs seem capable of tunnelling between cells in trees of all kinds, so they could one day be used to protect woody plants with similar problems, including grape vines, olives and cacao.

Was the Covid-19 virus artificial - Wuhan lab staff raise suspicion

• The story: America's famous publication the Wall Street Journal said three researchers from China’s Wuhan Institute of Virology (WIV) sought hospital care in November 2019, months before China disclosed the COVID-19 pandemic. This was also mentioned in US intelligence reports.

• Significance: The newspaper said the report — which provides fresh details on the number of researchers affected, the timing of their illnesses, and their hospital visits — may add weight to calls for a broader probe of whether the COVID-19 virus could have escaped from the laboratory.

1. A special meeting of the World Health Organisations decision-making body is expected to discuss the next phase of an investigation into the origins of COVID-19.
2. The Biden administration continued to have “serious questions about the earliest days of the COVID-19 pandemic, including its origins within the Peoples Republic of China.”
3. The U.S. government was working with the WHO and other member states to support an expert-driven evaluation of the pandemic’s origins “that is free from interference or politicisation.”

• More: The WSJ said current and former officials familiar with the intelligence about the lab researchers expressed a range of views about the strength of the report’s supporting evidence,with one unnamed person saying it needed “further investigation and additional corroboration.” The United States, Norway, Canada, Britain and other countries in March expressed concerns about the WHO-led COVID-19 origins study, and called for further investigation and full access to all pertinent human, animal and other data about the early stages of the outbreak. The US is keen to ensure greater cooperation and transparency by China, according to a source familiar with the effort.
• What China says: China’s foreign ministry noted that a WHO-led team had concluded a lab leak was extremely unlikely after a visit in February 2021 to the virology institute. China said that the U.S. continues to hype the lab leak theory, just to divert attention. The Trump administration had said it suspected the virus may have escaped from a Chinese lab, which Beijing denies.
• Summary: Trump administration believed that the several researchers inside the WIV became sick in autumn 2019, before the first identified case of the outbreak,with symptoms consistent with both COVID-19 and common seasonal illnesses. China refused to give raw data on early COVID-19 cases to the WHO-led team probing the origins of the pandemic, potentially complicating efforts to understand how the outbreak began.

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• 7. SOCIAL ISSUES (Prelims, GS Paper 2)

Huge population reduction arriving

• The story: While strong growth in human population was a cause of concern till 2010, now a different worry haunts policymakers.  Countries are now confronting population stagnation and a 'fertility bust', a reversal unmatched in history that will make infant birthday parties a rarer sight than funerals.
• First change: The first visible change will be the strain of longer lives and low fertility, leading to fewer workers and more retirees. It will change how societies are organised, as today the core notion is that a surplus of young people will drive economies and help pay for the old.
• Physical signals visible: Maternity wards are shutting down in Italy. Ghost cities are appearing in northeastern China. Universities in South Korea cannot find enough students, and in Germany, thousands of properties have been razed, with the land turned into parks. The new demographic forces, pushing toward more deaths than births, seem to be expanding and accelerating.
• Is everyone reducing: No. Some countries are seeing their populations grow, especially in Africa, but fertility rates are falling nearly everywhere else. Demographers predict that by the latter half of the century or possibly earlier, the global population will enter a sustained decline for the first time. For India, the present total fertility rate is 2.1, the replacement rate, and after peaking in 2050s, its population is likely to sharply reduce.
• That will be good, or not: An Earth with fewer people could ease pressure on resources, slow the destructive impact of climate change and reduce household burdens for women. Census announcements in May 2021 from China and the United States showed the slowest rates of population growth in decades. (a) Imagine entire regions where everyone is 70 or older. Imagine governments laying out huge bonuses for immigrants and mothers with lots of children. Imagine a gig economy filled with grandparents! (b) Nations may need a paradigm shift, and countries need to learn to live with and adapt to decline.
• East Asia and Europe: From Hungary to China, from Sweden to Japan, governments are struggling to balance the demands of a swelling older cohort with the needs of young people whose most intimate decisions about childbearing are being shaped by factors both positive (more work opportunities for women) and negative (gender inequality and high living costs).
• When numbers exploded: The 20th century presented a very different challenge. The global population saw its greatest increase in known history, from 1.6 billion in 1900 to 6 billion in 2000, as life spans lengthened and infant mortality declined. In some countries — representing about one-third of the world’s people — those growth dynamics are still in play. By the end of the century, Nigeria could surpass China in population; across sub-Saharan Africa, families are still having four or five children. But nearly everywhere else, the era of high fertility is ending. As women have gained more access to education and contraception and as the anxieties associated with having children intensify, more parents are delaying pregnancy, and fewer babies are being born. Even in countries long associated with rapid growth, such as India and Mexico, birthrates are falling toward or are already below the replacement rate of 2.1 children per family.
• Take in more immigrants: Some countries, like the United States, Australia and Canada, where birthrates hover between 1.5 and 2, have blunted the impact with immigrants. But in Eastern Europe, migration from the region has compounded depopulation, and in parts of Asia, the “demographic time bomb” that first became a subject of debate a few decades ago has finally gone off. South Korea’s fertility rate dropped to a record low of 0.92 in 2019 — less than one child per woman, the lowest rate in the developed world. Every month for the past 59 months, the total number of babies born in the country has dropped to a record depth. That declining birthrate, coupled with a rapid industrialization that has pushed people from rural towns to big cities, has created what can feel like a two-tiered society. While metropolises like Seoul continue to grow, putting intense pressure on infrastructure and housing, in regional towns it is easy to find schools shut and abandoned. Governments are handing out bonuses to motivate people to have more kids.
• Models show a sharp decline for China, with its population expected to fall from 1.41 billion now to about 730 million in 2100. So China would have as many 85-year-olds as 18-year-olds. In Japan, where adult diapers now outsell ones for babies, municipalities have been consolidated as towns age and shrink. In Sweden, some cities have shifted resources from schools to elder care. And almost everywhere, older people are being asked to keep working. Germany, which previously raised its retirement age to 67, is now considering a bump to 69, and has also worked through a program of urban contraction: Demolitions have removed around 330,000 units from the housing stock since 2002.
• Summary: This is the endgame. No country with a serious slowdown in population growth has managed to increase its fertility rate. There is little sign of wage growth in shrinking countries, and there is no guarantee that a smaller population means less stress on the environment.

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• 8. MISCELLANEOUS (Prelims, GS Paper 1, GS Paper 2)

Covid-19: India is third with more than 3 lakh deaths

• The story: While in 2020, India seemed slightly comfortable with the lower number of Covid deaths, the second wave in 2021 has changed that. India has now (by 23rd May 2021) recorded a grim milestone as it became the third country in the world after the United States of America and Brazil to record more than three lakh deaths due to the covid-19 pandemic.
• Others: America was the first country to record three lakh fatalities due to covid-19 followed by the Latin American country of Brazil. India, currently in the second wave of covid-19, recorded 2,40,842 daily new cases and also 3,741 deaths were reported in on 23rd May, taking the total number of deaths due to covid-19 in India to 2,99,266 which crossed three lakh in the evening of that day.
• Case load: India’s total active caseload has decreased to 28,05,399 on Sunday.A net decline of 1,18,001 is witnessed in the last 24 hours. It now comprises 10.57% of the country's total Positive Cases. Seven states cumulatively account for 66.88% of India’s total active cases.
• Summary: India saw more than 4000 deaths (officially) for a straight many days, despite dropping rate of infections. Many cases in rural areas went unrecorded. The nation will need a lot to pull itself back from this brink in coming months.

US restrictions on Ethiopia and Eritrea

• The story: United States has put visa restrictions on officials of Ethiopia and Eritrea, who are accused of increasing six-month-old war in Tigray region of Ethiopia.
• The Tigray problem: The US accused them as they had not taken meaningful steps to end hostilities in Tigray region. US Secretary of State Antony Blinken said curbs on economic and security assistance to Ethiopia were also imposed. However, it will continue providing humanitarian aid for health, food and education.
• The Ethiopia-Eritrea War: Conflict between Ethiopia and Eritrea started in May 1998 and ended in June 2000. While final peace treaty was agreed twenty years after initial confrontations in 2018. Both spent huge dollars on war and have suffered many casualties as a direct consequence. But it resulted in only minor border changes. As per the ruling of international commission in The Hague, Eritrea triggered the war against Ethiopia by breaking international law. After the war, Ethiopia held all the disputed territory and advanced to Eritrea.
• Eritrea–Ethiopia Boundary Commission: This was founded by United Nation. It established that the disputed territory of Badme belongs to Eritrea. But, as of 2019, Ethiopia still occupies Badme and territory near it. The Tigray region is the northernmost regional state of Ethiopia. Region is homeland of Tigrayan, Irob and Kunama people. In the federal constitution, it is also called as “Region 1”. Largest city, Mekelle is the capital of Tigray Region.

Ana - First named Atlantic storm of 2021

• The story: According to National Hurricane Centre, Miami, subtropical storm Ana is drifting northeast across the Atlantic Ocean after causing rain to Bermuda. Thus, first named Atlantic storm will cause no damage to land and will dissipate soon.
• Details: The Ana storm was located about 435 kilometres northeast of Bermuda. It had a maximum sustained wind of 75 kilometres per hour. Ana was the first named storm in Atlantic in 2021, even though hurricane season is not started yet. Hurricane season usually start on June 1.
• Atlantic hurricanes: Atlantic hurricanes, also called tropical storms, are a tropical cyclone forming in Atlantic Ocean. They form usually in months of June and November. A hurricane is different from cyclone or typhoon based on their location, only.  Hurricane storm occurs in Atlantic Ocean and north-eastern Pacific Ocean, typhoon in north-western Pacific Ocean while cyclone in South Pacific Ocean or Indian Ocean.

Delhi records 8 new snake species

• The story: After an extensive five-year study by researchers from Delhi University, eight more species were added to the list of snakes in Delhi.
• Points to note: With the addition of eight species, number of snake species recorded in Delhi is increased to 23. It has updated 1997 list mentioned in ”Fauna of Delhi” book. This book is widely used to track native species in Delhi. Study was conducted by Gaurav Barhadiya, researcher from Department of Environmental Studies in Delhi University. As per study, there are 329 snakes in 23 species and 9 families.
• New members: These were - Common bronzeback tree snake, common cat snake, common trinket snake, common kukri, common sand boa, barred wolf snake, streaked kukri, and saw-scaled viper are the new additions in species of snakes.
• Research: Techniques such as pitfall traps, opportunistic encounters, road kills encounters and nocturnal road cruising were used to collect data. Secondary information on snake rescue were also taken from NGOs like Wildlife Trust of India and Fauna Foundation of India. Rapid urbanization is the main cause of concerns for reptilian population, including snakes in cities. Green spaces are reducing with increasing urbanisation. Thus, future planning should include plans for preservation of green spaces and wildlife. Delhi is an important site for conservation because it is a part of ancient Aravalli mountains. Though, it has now fragmented either in the form of urban forests or urban parks. Despite that, it experiences regular snake occurrences across houses, gardens and industrial areas. Thus, Delhi still has good potential and provides an opportunity to conserve native flora, fauna and biodiversity.

9.1 Today's best editorials to read

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• SECTION 3 - MCQs (Multiple Choice Questions)

Solve the online quiz given, right now. Check scores, and relative performance!

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