Daily Current Affairs - Civil Services - 18-06-2021

Useful compilation of Civil Services oriented - Daily Current Affairs - Civil Services - 18-06-2021

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• SECTION 1 - TEN NEWS HEADLINES

1. Healthcare and Medicine - New COVID-19 variant 'Lambda' identified - The WHO (World Health Organisation) said in June that a new variant of COVID-19, named Lambda, has been identified in 29 countries, including Argentina, Chile and Ecuador. First identified in Peru, the Lambda lineage was classified as a global Variant of Interest over an "elevated prevalence" in South America, the WHO added. Peru has reported 81% of COVID-19 cases since April 2021 associated with this variant. The SARS-CoV-2 virus is doing nothing special, but mutating as per natural evolution pressures. Humanity has let it spread around the world, giving it more opportunities to mutate as it replicates. The virus is beginning to adapt to man's natural defenses. Stopping its transmission is the only way to stop newer mutations from emerging.
2. Infrastructure - MoU for seaplane services in India - The Ministry of Ports, Shipping and Waterways (MoPSW) and Ministry of Civil Aviation (MoCA) signed a Memorandum of Understanding (MoU) for Development of Sea Plane Services in India. The goal is development of Non Scheduled/Scheduled operation of seaplane services within territorial jurisdiction of India under RCS-UDAN scheme. A Co-ordination Committee will work on timely completion of operationalisation of Seaplane services at various locations, with members from among officials of MoCA, MOPSW and Ministry of Tourism (MoT). Enhanced smooth connectivity by promoting eco-friendly transportation through seaplanes will boost the tourism industry. The roadmap will expedite the development of new water aerodromes and operationalization of new seaplane routes in India.
3. World Politics - International vaccine institute, Bangladesh - India's neighbour Bangladesh will set up an international institute for vaccine production, including for COVID 19. PM Sheikh Hasina said that the government will sign an agreement with South Korea to set up the institute. She informed the parliament that a vaccine developed by one of the Bangladeshi companies Globe Biotech Ltd is now in the trial stage. It is obvious that Bangladesh has taken the initiative to produce COVID 19 vaccine alongwith collecting vaccines from across the world, in view of the Corona pandemic. Bangladesh received 1.08 crore doses of the COVID 19 vaccines from foreign sources, of which 1.02 crore doses came from India including the gifted doses of over 3 million doses. Later, the exports from India stopped. African nations too are suffering from a lack of vaccines, and are planning on starting their own production lines.
4. Arts, Cultre and Literature - National Maritime Heritage Complex (NMHC) - The Ministry of Culture (MoC) and Ministry of Ports, Shipping and Waterways (MoPSW) signed a MoU for Cooperation in Development of National Maritime Heritage Complex (NMHC) at Lothal, Gujarat. Originally, the foundation stone was laid by PM in March 2019. The National Maritime Heritage Complex is to be developed in the vicinity of the ASI site of Lothal, located about 80 kms away from Ahmedabad, Gujarat. It will showcase and preserve India’s rich and diverse maritime heritage, and display objects relating to ships and travel on large bodies of water. It also intends to highlight the ancient shipbuilding and navigational technologies developed by India. The project is being implemented by the Ministry of Shipping through its Sagarmala programme, with the involvement of the Archaeological Survey of India (ASI). India and Portugal will cooperate in the setting up of this, and the Portuguese Navy has agreed to assist with their experience of administering the maritime museum in Lisbon.
5. Defence and Military - Corporatisation of India's OFBs - The Union Cabinet approved the corporatisation of the British-era Ordnance Factory Board (OFB) located in Kolkata, with 41 factories, into seven new fully government-owned corporate entities. This will be on the lines of Defence Public Sector Undertakings (DPSUs). The corporatisation process will be supervised by the Empowered Group of Ministers (EGM) chaired by Rajnath Singh and this would address implementation issues. The corporatisation is aimed at bringing autonomy, better accountability and higher efficiency into the functioning of the two-and-a-half-century-old institutions. On 18th March 1801, the first Ordnance Factory, now known as the ‘Gun and Shell Factory’ at Cossipore was established under the aegis of its corporate headquarters Ordnance Factory Board (OFB) in Kolkata. Under the ‘Make-In-India’ initiative, Ordnance Factories have made considerable progress with the development of the 155 mm 45 calibre ‘Dhanush’ and the upgrading of existing 130 mm M-46 artillery guns to 155 mm 45 calibre ‘Sharang’ gun systems.
6. Social Issues - Cross-disability centres - The Minister for Social Justice & Empowerment inaugurated 14 Cross-Disability Early Intervention Centres located at 7 National Institutes and 7 Composite Regional Centres. These have been established under the Department of Empowerment of Persons with Disabilities (DEPwD), Ministry of Social Justice and Empowerment, and setup at 7 National Institutes at Delhi, Mumbai, Dehradun, Secunderabad, Kolkatta, Cuttack and Chennai and 7 Composite Regional Centres at Sundernagar, Lucknow, Bhopal, Rajnandgaon, Patna, Nellore and Kozhikode in the first phase. These 14 Centres will provide contiguous facilities for therapeutic, rehabilitative care services and pre-school training for children with disabilities (0-6 years) covering all types of disabilities covered under the Rights of Persons with Disabilities Act, 2016. These services will be provided under a single roof with accessible and aesthetically designed environments.
7. Indian Economy - Army tried out Railways' DFC - The Indian Army has successfully conducted trial runs of military trains loaded with vehicles and equipment on the dedicated freight corridor. It ferried heavy equipment from New Rewari station in Haryana to New Phulera in Rajasthan. The Dedicated Freight Corridor Corporation of India is constructing the Western DFC (1506 Route km) and Eastern DFC (1875 route km including Sonnagar-Dankuni PPP Section). The EDFC starting from Sahnewal near Ludhiana (Punjab) will pass through the states of Punjab, Haryana, Uttar Pradesh, Bihar and Jharkhand to terminate at Dankuni in West Bengal. The Western Corridor connecting Dadri in Uttar Pradesh to Jawaharlal Nehru Port (JNPT) in Mumbai will traverse through the states of UP, Haryana, Rajasthan, Gujarat and Maharashtra of WDFC. The following two (2) sections of DFC have been commissioned and dedicated to the nation by Hon’ble Prime Minister of India:- Bhaupur to Khurja (351 km) of Eastern Dedicated Freight Corridor (EDFC) on January 29, 2020. Rewari to Madar (306 km) of Western Dedicated Freight Corridor (WDFC) on January 7, 2021. Goal of the DFC is to decouple freight and passenger train routes, and thereby speed up freight train speeds.
8. World Economy - Cryptos may get an index soon - Global securities index publisher MSCI is looking at launching indices for cryptocurrency assets, as per CEO Henry Fernandez. In May 2021, S&P Dow Jones Indices launched three cryptocurrency indices tied to the performance of Bitcoin and Ethereum. Earlier, Bank of New York Mellon, Mastercard, Visa and Goldman Sachs moved to support cryptocurrencies. These efforts will take cryptos "more" mainstream, and garner more acceptance. Various governments have had differing perspectives on cryptos, with Indian govt. being ambivalent about its regulation or banning. China recently banned mining of cryptos.
9. Science and Technology - Various updates - (a) Google and Alphabet's CEO Sundar Pichai said Google's charitable arm Google.org will give $15.5 million (Rs.113 crore) to build oxygen generation plants and train healthcare workers in rural India. "Our hearts go out to those in India impacted by the ongoing COVID-19 crisis," Pichai tweeted. (b) Union IT Minister Ravi Shankar Prasad spoke about new IT rules and said, "If you (social media companies) lecture us on democracy, we'll ask questions." (c) A bean-shaped 'underwater island' in the Arabian Sea near Kerala's Kochi is visible on Google Maps' satellite imagery. Experts assume it to be an underwater structure and officials of Kerala University of Fisheries and Ocean Studies (KUFOS) plan to investigate it. (d) China's government summoned Meituan CEO Wang Xing and warned him to keep a low profile after the billionaire shared a 1,100-year-old Chinese poem on social media. Meituan lost $26 billion in market value in two days after some interpreted Xing's post as a criticism of the government.
10. Indian Politics - Covid Update - (a) Active COVID-19 cases in India have fallen below 8 lakh after 73 days, as India reported 62,480 new COVID-19 cases and 1,587 deaths in 24 hours. India reported 3,83,490 COVID-19 deaths so far, while 2,85,80,647 people have been discharged. (b) Medical experts in India fear a third wave of coronavirus infections likely by October. It may also be controlled in a better way than the second wave. (c) Sri Lankan authorities said that the highly transmissible Delta variant of Covid-19 was detected in the community. The strain was detected in samples collected from an area in the Colombo central suburb of Dematagoda. (d) The PM Modi launched six customised crash courses for Covid-19 frontline workers, under 'Skill India'. He said that the govt. was working towards preparing 1 lakh frontline workers in India.

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• SECTION 2 - DAILY CURRENT AFFAIRS

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

K Shape recovery's deep footprint

 

• The story: India went through a strong second Covid wave, starting April 2021. A clear result now visible is that stronger enterprises are gaining at the expense of weaker ones. The RBI's estimate of loss of economic output has been approx. Rs.2 lakh crore.
• State of the economy report: RBI issues a report each month, and the latest indicates the impact of regional lockdowns. The second wave spread to smaller cities and villages, impacting rural demand. India's GDP in 2020-21 was insulated from any rural shock, largely.

1. RBI's optimism about the future was seen in its quoting the late British PM Churchill: “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty."
2. RBI then points out: “Life- and work-style transformation such as increased remote work and online shopping may likely endure. When patterns of demand shift, some firms may face closure. Some industries may become permanently smaller."

• Under-statred: The RBI has almost silently said the most visible damage from the pandemic, to Indian economy. Many small shops and micro, small and medium enterprises (MSMEs) have shut shop in the past 12 months. That's so because of localized lockdowns leading to a loss of regular business, and the business was captured by big e-commerce companies. That's normal for any free market economy, but with India's level of per capita and joblessness, a rather bad omen.
• Theory of it: The point of economic activity is consumption, and producers produce in order that consumers may consume. Sellers sell in order to buy. But what’s good for the consumer comes at a cost, borne today by the smaller fish. Surveys indicate clearly that many MSMEs are in trouble. Most will have no cash left in a few months, and may retrench workers on a large scale. It is only to be expected as for 12 months now, India has had some type of disruption or the other. The big fish sail through, given huge balance sheets and cash reserves.
• Squeeze the small guy: India's big firms have been renegotiating their supply and work contracts with suppliers and contractors, and the MSMEs have had to bear the brunt of this. Listed companies of India continue to make record profits, leading to share prices going through the roof. Financial results of 1,481 listed companies for the January-March 2021 period show they made a net profit of Rs.1.8 trillion, nearly 15% higher than the record profits of the previous quarter.
• Summary: As the youth enter the workforce and find jobs, they earn money and spend, creating more demand, leading to more job creation. In India, the big have become bigger and the small have been destroyed. Since most of new jobs are created in the process of smaller businesses growing bigger, the so-called demographic dividend itself may remain under-utilised.

Where is "Made in India" content Govt questions e-commerce firms

 

• The story: The Traders’ associations of India such as the Confederation of All India Traders (CAIT) had in January 2021 urged the government to take action against e-commerce behemoths for violating norms pertaining to mandatory display of the ‘country of origin’ tag. Now, the govt. has sent notices to e-commerce players for not complying with the mandatory display of the ‘country of origin’ tag on products sold.
• Rules: Every product has to display the country of origin, along with other basic information. In the case of e-commerce companies, these details have to be clearly displayed on their portals. Companies are given a chance to explain their case and asked exactly where one can find the product details (online).

1. In 2020, the government made it compulsory for all vendors selling on marketplaces such as Amazon and Flipkart to mention the name and details of any importer or seller to help consumers make an informed choice before buying a product. That was when India and China were engaged at the LAC in Ladakh.
2. Various laws, including the Legal Metrology (Packaged Commodities) Rules, 2011, and the Geographical Indications of Goods Registration and Protection Act, 1999, require the declaration of country of origin for goods.

• The Consumer Protection (E-Commerce) Rules 2020, notified by the consumer affairs ministry, require the display of the country of origin alongside product listings. However, the enforcement mechanism for this lies primarily with the government and consumers as it would be tough to catch any misrepresentation by a seller on a platform unless brought to one’s notice. Adequate mechanisms and triggers should be put in place by platforms to ensure that once such mismatches are pointed out, appropriate corrective actions are taken to prevent future misrepresentations.
• Penalty: According to the Legal Metrology Act, such violations can result in a penalty of up to Rs 1 lakh each. Of the 148 notices sent, 56 have compounded it (the offence) and paid up around Rs 34 lakh.

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

Electronic waste hurting children - WHO 

• The story: The World Health Organization (WHO) in a report titled “Children and Digital Dumpsites” says that children working in informal processing are facing huge risks due to discarded electronic devices, or e-waste. There are as many as 18 million children (as young as five years) and about 12.9 million women work at these e-waste dumpsites every year. The e-waste from high-income countries is dumped in the middle- or low-income countries for processing every year.
• Points to note: E-Waste is the short for "Electronic-Waste", and is a term used to describe old, end-of-life or discarded electronic appliances. It includes electronic equipment, completely or in part discarded as waste, by consumers or bulk users, as well as rejects from manufacturing, refurbishment and repair processes. Such waste has over 1,000 precious metals and other substances like gold, copper, lead, mercury, cadmium, chromium, polybrominated biphenyls and polycyclic aromatic hydrocarbons.
• Volume of E-waste: According to the 'Global E-waste Statistics Partnership', the volume of e-waste generated is surging rapidly across the globe, with more than 53.6 million tonnes of e-waste generated in 2019. Only 17.4% of this was processed in formal recycling facilities, and the rest dumped in low- or middle-income countries for illegal processing by informal workers. That is as bad as it gets!
• The Indian case: According to the Central Pollution Control Board (CPCB), India generated more than 10 lakh tonnes of e-waste in 2019-20, an increase from 7 lakh tonnes in 2017-18. The e-waste dismantling capacity did not increase from 7.82 lakh tonnes since 2017-18.

1. In 2018, the Ministry of Environment had told the NGT that 95% of e-waste in India is recycled by the informal sector and scrap dealers unscientifically dispose of it by burning or dissolving it in acids.
2. Digital dumpsites have a grave effect on the children working there, who are more prone to improper lung function, deoxyribonucleic acid damage and increased risk of chronic diseases like cancer and cardiovascular disease. They are less likely to metabolise or eradicate pollutants absorbed.
3. Several women, including expectant mothers, also work there. Processing e-waste exposes them as well as their children to these toxins.
4. The hazardous impact of working at such sites is also experienced by families and communities that reside in the vicinity of these e-waste dumpsites.

• Management of E-waste (International Convention):

1. Basel Convention on the Control of the Trans-boundary Movement of Hazardous Waste, 1992 - The Convention did not mention e-waste but later it addressed the issues of e-waste in 2006 (COP8). It seeks to ensure environmentally sound management; prevention of illegal traffic to developing countries and; building capacity to better manage e-waste.
2. The Nairobi Declaration - It was adopted at COP9 of the Basel Convention, and aimed at creating innovative solutions for the environmentally sound management of electronic wastes.
3. India - For producers, the government implemented the E-waste (Management) Rules (2016) which enforces the Extended Producer Responsibility (EPR). Under EPR principle the producers have been made responsible to collect a certain percentage of E-waste generated from their goods once they have reached their “end-of-life”. The enforcement has been quite lax. The states have been entrusted with the responsibility for maintaining industrial space for e-waste dismantling and recycling facilities, and are expected to establish measures for protecting the health and safety of workers engaged in the dismantling and recycling facilities for e-waste.
4. India’s first e-waste clinic for segregating, processing and disposal of waste from household and commercial units has been set-up in Bhopal, Madhya Pradesh.

• Summary: Since most of the e-waste is recycled in India in unorganized units, engaging large manpower, the recovery of metals from Printed Circuit Boards (PCBs) by primitive means is a most hazardous act. Proper education, awareness and most importantly alternative cost effective technology need to be provided so that better means can be provided. Integration of smaller units with larger ones, to create one value chain, will help a lot.

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

Foreign affairs update

 

 

• NATO pursues Qatar base: Kabul airport security isn’t the only item on NATO’s Afghanistan agenda but alliance members have approached Qatar about providing NATO with a base to train Afghan forces, with the United Kingdom, the United States, and Turkey participating. NATO has already indicated its desire to continue its training and advising mission in Afghanistan through remote channels and in third countries. Qatar is home to the Taliban’s political office and the venue for recent talks among the insurgents, the U.S. government, and, more recently, the Afghan government. The Taliban’s 2020 agreement with the United States says nothing about training Afghan forces abroad, so the group has no grounds to reject such an arrangement.
• Pakistan's national budget: The Pakistani Finance Minister Shaukat Tarin presented encouraging new economic data in his Budget. Despite the pandemic, the country’s GDP grew nearly 4 percent in the first nine months of the 2020-2021 fiscal year, which ends this month—notably higher than earlier targets of 2.1 percent. Tarin attributed this success to strong performances from Pakistan’s industrial and services sectors. The GDP growth target for next year is 4.8 percent. The Budget highlights include increased development spending, 10 percent raises for government employees, and emergency agriculture spending. But such generous spending isn’t ensured, given that Pakistan’s participation in an International Monetary Fund bailout program may necessitate more austerity. The FM warned about the country’s long-standing structural constraints, including its inability to generate tax revenue.
• India-China border clash anniversary: June 15 marked one year since 20 Indian and five Chinese soldiers were killed in a clash in the disputed border region of Ladakh, the deadliest conflict between the countries in more than 40 years. The incident exposed India’s vulnerabilities in the region, likely prompting New Delhi to pursue a border truce with Pakistan in February to dedicate attention to its border with China. News media reported that Chinese soldiers remain mobilized along the disputed border even months after the Chinese military disengaged from areas near the clash.
• US Maldives talks: The exchange between Colin Kahl and Abdulla Shahid, which addressed U.S. pandemic assistance and common interests in the Indo-Pacific region, may hint at an emerging Biden administration policy in South Asia. Most of Biden administration's high-level engagements in the region so far have been with Afghanistan, India, and Pakistan, with the exception of a trip to Bangladesh by climate czar John Kerry. But South Asia is becoming a major battleground for India-China rivalry, with many small South Asian states—including the Maldives—caught up in the strategic competition. Washington has a strong interest in engaging more with them.
• Iran's presidential election: A presidential election was held in Iran on 18th June, but it was not a contest. Four candidates, already vetted for their ideological purity by the country’s Guardian Council, vied for the presidency, with one—Ebrahim Raisi, the head of the judiciary—widely tipped to win. Raisi, 60, comes to the job with an unimpeachable pedigree within Iran’s hierarchy. He has served as both attorney general and chief justice, and earned a spot on U.S. and EU sanctions lists for his role in the sentencing of over a thousand dissidents to death in 1988. Iran’s unique political system usually does not leave much room for dissent, but this election appears to go even further to eliminate the risk of ideological diversity. Experts said that this year’s election is the hard-liners’ most transparent attempt in Iran’s modern history to not just disqualify their rivals but remove their line of thinking entirely from Iran’s political landscape.
• Rejuvenation of JCPOA delayed: The nuclear deal between Obama administration and President Rouhani came apart as Trump walked away from it. Now, President Biden is trying to recover lost ground. But negotiations in Vienna on reviving the 2015 nuclear deal and lifting U.S. sanctions have not yet concluded. That will create an awkward start to the likely new Raisi presidency. A deal before election day would have allowed Raisi to blame any ill outcomes on his soon-to-be predecessor Hassan Rouhani. Iran’s new president won’t take office until August, leaving time for political cover should a deal fail to live up to Tehran’s expectations.

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

IBC bankruptcy resolutions see 80% haircuts 

 

• The story: For decades, recovering stuck money in sinking firms was a nightmare in India, given the multiple laws and resolution regimes. Then came the big promise in the form of the 2016 Insolvency and Bankruptcy Code, or the IBC. But now, in 2021, India’s bankruptcy resolution system is hit by very meagre recoveries and long delays, despite various attempts to streamline the 2017 regime.
• Videocon case: In July, the National Company Law Tribunal (NCLT) questioned the extensive "haircut" that lenders have agreed to take in the insolvency resolution of Videocon group companies. A "haircut" refers to the loss of money while recovering unpaid dues, from a debtor firm or promoter.

1. Vedanta billionaire Anil Agarwal’s Twin Star Technologies proposed to pay a paltry Rs.2,962 crore against admitted claims of Rs.64,838 crore, implying a 95.85% loss to all Videocon creditors. This is close to the liquidation value of these companies.
2. Steep haircuts are not new for lenders who have earlier taken bankrupt companies to the courts.

• IBBI data: Data from the Insolvency and Bankruptcy Board of India (IBBI) shows that in over 363 major NCLT resolutions since 2017, banks took an average haircut of 80% over the past four years. Some of the large haircuts include Deccan Chronicle (95%), Lanco Infra (88%), Ushdev International (94%) and Zion Steel (99%). Among the 40 large cases referred by the Reserve Bank of India, the highest recovery was in the case of Essar Steel, where lenders managed to recover 92% of the outstanding dues of Rs.49,000 crore. This case, which went all the way to the Supreme Court, saw the Ruias cede control of the firm to Arcelor Mittal.

1. In the case of Bhushan Power & Steel, banks recovered 41% of their dues. The resolution plan submitted by JSW Steel included payment of Rs.19,350 crore to lenders against outstanding dues of Rs.47,157 crore.
2. Since 2017, nearly 4,300 cases have been admitted for resolution under the Insolvency and Bankruptcy Code (IBC). Of these, 8% have seen resolution and 30% gone into liquidation, while 40% await resolution. (12% closed on appeal/review/settled, 10% closed by withdrawal).

• Delays: Bankruptcy resolution, which initially was prescribed within 180-270 days, now happens even beyond the extended timeline of 330 days. It is clear that the IBC is just another tool for loan recovery, and the main reason for the large haircuts may be the delay in admitting cases.

1. Lender should do it when the default looks imminent. The enterprise value of the company needs to be retained if it has to get a good value. Early identification is therefore the only way for better recovery.
2. IBC still remains a better option than other modes of recovery. According to the RBI’s Trend and Progress Report, recovery through IBC stood at 45% during fiscal year 2020. Barring the top nine accounts, the recovery rate has been just 24%.

• Other options: In contrast, other modes of recovery like debt recovery tribunals (DRTs) saw just 4% recovery, and Securitisation and Reconstruction of Financial Assets Enforcement of Securities (Sarfaesi) 26% and Lok Adalats 6%.

1. Banks may consider resolution outside IBC also. Pre-packs (pre-packaged insolvency resolution) could be expanded to mid-sized cases.
2. Relaxing Section 29 A if promoters are not dishonest or diverted funds, may be tried.

• Summary: The pandemic and the consequent suspension of IBC proceedings for the entire fiscal year 2021 led to a sharp slowdown in the resolution process. ICRA said that the realization for financial creditors from IBC declined to Rs.26,000 crore in fiscal year 2021. The rating agency expects financial creditors could realize Rs.55,000-60,000 crore in FY22, with 20% of the estimated realization coming from eight to nine big-ticket accounts.

Sellers on GeM must share local content details

• The story: The government has said that sellers who do not declare the amount of local content while uploading product and creating catalogue on the Government e-Marketplace (GeM) will lose out on business and not be able to participate in bids in which buyer has chosen to procure only Make in India (MII) compliant products.
• Compulsory: The commerce and industry ministry said that now it is mandatory for all sellers to upfront declare the Country of Origin without which they cannot upload products on GeM.

1. Launched in 2016 as India’s national online marketplace for government procurement, GeM was the first e-commerce portal in the country to start displaying the 'Country of Origin' of all products prominently for giving its buyers the right to make informed decisions of procurement.
2. Going a step further, GeM started highlighting the local content percentage on the product description page prominently. Even within the products made in India, buyers can identify products that have higher local content and take informed decisions.

• A filter: A "Make in India filter" was given on the portal using which a buyer can filter out all non-local suppliers and restrict the procurements under direct purchase and L-1 (lowest bid) purchase from among local suppliers only. Sellers who do not declare local content percentage while uploading product and creating catalogue on GeM will lose out on business and will not be able to participate in bids in which the buyer has chosen to procure only MII compliant products.
• MSME, works contracts: The GeM is providing increasing market access to seller groups like MSEs (micro and small enterprises), women SHGs, and startups. It has over 6.9 lakh MSE sellers and service providers who contribute over 56% of the total order value on the platform. MSEs can now get a loan at the point of acceptance of an order on the GeM platform. It will help in meeting the working capital needs and ensure access to finance for them.
• Summary: The GeMSAHAY app has been rolled out to address the credit access challenges faced by MSMEs and it will provide sellers who are sole proprietors, with the best loan offers from top lenders in the country including public sector banks, private banks and NBFCs. The GeM is exploring ways to bring works on the platform with an aim to further widen its scope and the work on integration of GeM with the Integrated Material Management System (iMMS) and Indian Railways Electronic Procurement System (iMMS/ IRePS) is underway.

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

Indian polity and Governors

 

• The story: The post of Governors in Indian states was always a much-debated one. In the constituent assembly debates, the post was considered necessary but with certain limitations. Elections to the post were ruled out finally. Over the past seven decades, many controversial issues came up.
• West Bengal: Since few years, the role of the Governor of West Bengal has been under a scanner. Present Chief Minister has described the Governor of the state as the 'central government’s own person', implying he is not a constitutional person. The Chief Minister wrote to the President of India demanding the withdrawal of the Governor.
• Points: There is a delicate federal balance in this Governor-State govt relationship.

1. Constitutional provisions - Article 153 says that there shall be a Governor for each State. One person can be appointed as Governor for two or more States. A Governor is appointed by the President and is a nominee of the Central Government. It is stated that the Governor has a dual role: (a) He is the constitutional head of the state, bound by the advice of his council of ministers (CoM), and (b) He functions as a vital link between the Union Government and the State Government.
2. Eligibility - Articles 157 and 158 specify eligibility requirements for the post of governor.
3. Other powers - Governor has the power to grant pardons, reprieves, etc. (Article 161). There is a CoM with the CM at the head to aid and advise the Governor in the exercise of his functions, except some conditions for discretion (Article 163). The Governor appoints the Chief Minister and other Ministers (Article 164). The Governor assents, withholds assent, or reserves the bill for the consideration of the President passed by the Legislative Assembly (Article 200). The Governor may promulgate the Ordinances under certain circumstances (Article 213).

• Controversies related to Governor’s role: Starting with the governments of PM Indira Gandhi, many instances of abuse of power (via Centre) were seen.

1. Abuse of power by Centre - There are examples of the Governor’s position being abused, usually at the behest of the ruling party at the Centre. The process of appointment has generally been the cause behind it.
2. Ideology - In some cases, politicians and former bureaucrats identifying with a particular political ideology were appointed Governors by the central government. This goes against the constitutionally mandated neutral seat and has resulted in bias, as appears to have happened in Karnataka and Goa.
3. Puppets - The Governor of Rajasthan was charged with the violation of the model code of conduct. His support of the central ruling party went against the spirit of non-partisanship that is expected from the person sitting on constitutional posts. Hence, negative terms like an agent of the Centre, Puppet and rubber stamps are used to describe a governor of the state.
4. Favouritism - The Governor’s discretionary powers to invite the leader of the largest party/alliance, post-election, to form the government has often been misused to favour a particular political party.
5. Misuse of power - A Governor's recommendation for President's Rule (Article 356) in a state has not always been based on 'objective material', but on political whim or fancy.

• Recommendations to improve the system: First and foremost comes the process of appointment and removal. The "Punchhi commission - 2010" recommended that there should be a provision for the impeachment of the governor by the state legislature, and that the state CM should have a say in the governor’s appointment.

1. Use of Article 356 - The "Punchhi commission - 2010" recommended that Articles 355 & 356 be amended. The Sarkaria Commission (1988) recommended that Article 356 should be used in very rare cases when it becomes unavoidable to restore the breakdown of constitutional machinery in the State. Recommendations were given by the Administrative Reforms Commission (1968), Rajamannar Committee (1971) and Justice V.Chelliah Commission (2002) as well.
2. On dismissal of State Government under Article 356 - The S.R. Bommai Judgment (1994) was the milestone ase. It put an end to the arbitrary dismissal of State governments by a hostile Central government. The verdict ruled that the floor of the Assembly is the only forum that should test the majority of the government of the day, and not the subjective opinion of the Governor.
3. On discretion - The Supreme Court in the Nabam Rebia judgment (2016) ruled that the exercise of Governor’s discretion Article 163 is limited and his choice of action should not be arbitrary or fanciful.

• Summary: For the smooth functioning of government, it is essential that the governor must act judiciously, impartially and efficiently while exercising his discretion and personal judgment. There is a need to strengthen federal setup in India, if economic progress without friction is to be achieved. The Inter-State council and the role of Rajya Sabha as the chamber of federalism must be strengthened. The appointment can be made from a panel prepared by the state legislature and actual appointing authority should be the Inter-state Council, not the central government. A 'Code of Conduct' should lay down certain 'norms and principles' which should guide the exercise of the governor's 'discretion' and his powers.

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

India will solarise agri feeders

 

• The story: The government is planning to spend Rs.20,000 crore under a new scheme for solarising agricultural feeders. In the new scheme, the cost of solarisation will be met by agricultural subsidy by states. At present, the KUSUM scheme provides for solaring of individual pumps of farmers. Now, money will be given for for solarising the entire agricultural feeders so no need to set up individual panels for farmers.
• Details: For solarising the entire agricultural sector, 110 gigawatt (GW) capacity will have to be installed. Energy access was a huge challenge for the world and without this energy transition – global energy sector’s shift from fossil-based system to renewable energy – cannot happen.
• Solar city: The govt has said that the solar city plan – where the government has proposed to run entire cities on renewable energy – earmarking of 17 cities is done already.
• Ladakh RE: The government is setting up a 10 GW renewable energy park in Ladakh. Power evacuation survey for the project has been completed and construction will begin by year end. Power will also be exported from the project, which would increase the revenues of the region.
• Future RE: On future clean energy technologies, the government plans to invite bids for setting up large-scale green hydrogen projects in the next three to four months. The projects will be based on green hydrogen purchase obligations similar to renewable purchase obligations. India has tripled its renewable energy capacity to 96 GW in the past five years while its solar energy capacity has gone up about 15.5 times.
• Discom viability: The government is working on a four-pronged strategy for boosting discom viability. That includes launching a new distribution reforms scheme and notifying a new National Tariff Policy soon. The recommendation of the finance commission for permitting the states to borrow additional half a  percentage of their state GDP every year, subject to their meeting the distribution reforms, was formally launched by the Ministry of Finance. The Power Finance Corp (PFC) and Rural Electrification Corp (REC) have enforced additional prudential norms for discoms for availing loans and the government wants to ensure these norms are extended to all financial institutions including banks.
• Knowledge centre: Farm access to electricity has two challenges: (i) ensuring farmers have access to the energy they need in the day time hours and (ii) ensuring that the sector's energy demands don't further aggravate contribute to DISCOMS stress. Solar energy, which has proved itself as the star of India’s energy transition, provides a pathway. One of the simplest ways to implement solar energy is by solarizing the agricultural feeders deployed to transmit energy to the farms by DISCOMS. A solar agri-feeder is a 1-10 MW community-scale solar power plant, linked to a sub-station. Necessitating five acres of land, power generation from a single 1 MW solar plant can support around 350, five horsepower (HP) pumps. Pumps connected to dedicated agri-feeders can receive eight to 10 hours of reliable and sustainable day-time electricity, without farmers having to spend on installation,maintainance and operation. In the case of solar intermittency (e.g. due to cloud cover), DISCOMS can still assist the agriculture sector. Agri-feeder solarisation is highly scalable, as an entire array of small solar power plants can rapidly be set up in the open or unused land of substations across India.

Eggs for vaccines bring big money 

• The story: A vaccine producer has isolated a disease-causing virus, procured specialised raw materials and glass vials, and is set to start producing life-saving boosters. To replicate the virus for mass-immunisation, eggs are being made on mass scale. India’s largest poultry producer Venky’s, which has almost 100% market share in the country for specific pathogen-free (SPF) eggs and supplies to Serum Institute of India, has seen demand going up.
• Father of Indian poultry: Venky's founder B V Rao, known as the father of poultry farming in India, started a poultry vaccine production facility called Ventri Biologicals in 1979.
• The science of it: Viruses used for several vaccine production need host cells to grow. Fertile chicken eggs are an effective medium for virus replication and have been in use for over 70 years. At present, SPF eggs are not being used for the production of Covid vaccines. But research is on. The present high demand is due to the rise in the cost of imported eggs and increased requirement of other vaccines, including for poultry.

1. Of the 10 lakh SPF eggs being produced by us every month, a substantial quantity is used for the production of human vaccines for diseases like rabies and flu (including H1N1)
2. For Covid vaccines which require virus replication, alternatives like cell culture are being used
3. The price of SPF eggs depends on quantity & supply frequency. The price quoted by US-based producers is $2-2.5 per egg. The landing price in India will be higher because of freight & duty. Venky’s eggs are priced at around $1 per egg. Venky’s completed SPF egg capacity expansion in October 2020
4. It is targeting 85% utilization of the annual capacity of 1.4-crore SPF eggs in FY22 and reach 90% in FY23
5. From being the first Asian company to make eggs for vaccine production in 1983, Venky’s has grown to become the world’s fourth-largest SPF egg producer.
6. To avoid dependence on imports, Venky’s signed a technology transfer deal with a US company in 1983 for local production of SPF eggs. Since 1988, India has been self-sufficient in SPF egg requirements.
7. Venky’s has virtually no competitors in SPF egg production in the country due to a complex and lengthy manufacturing process. To produce an SPF poultry flock one has to select pure lines (pedigree stock) on the basis of characteristics like disease resistance, eggshell quality, feed intake, superior production, and maximum livability. These flocks then have to be cleaned against vertically and laterally transmitted poultry disease agents for three generations, which takes at least 6-7 years. During their lifetime, the birds cannot be vaccinated nor can they be treated with antibiotics.
8. The flocks also have special requirements like filtered air positive pressure houses, pre-heated feed, filtered water supply, and strict biosecurity.

• Summary: The SPF division is important for Venky’s not just from a revenue perspective but due to its potential for diversification. It is engaged in immunisation of SPF birds against human/poultry viruses with repeated doses. The antibodies produced are then transferred to egg yolks, which are purified & used for treatment, particularly in rotavirus infection in children (which causes severe diarrhea).

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

India sex ratio update - less than 900 in most states

 

• The story: Data on birth and death registrations in 2019 reveals a mixed picture as far as sex ratio at birth (SRB) is concerned. The good news is that, unlike in the past, for all states the number of girls born for every 1,000 boys born is not less than 900. The bad news is that many recorded lower ratios than in 2018 or 2017. The data is from the annual report of the Civil Registration System for 2019.
• Details: With most states that had a low SRB in previous years showing an improvement, there is convergence towards a middling level. Assam is one of the few states where an already low ratio of 921 in 2017 has fallen steeply to 903 two years later.

1. Though tribal communities have traditionally had better sex ratios than the rest, Chhattisgarh, a tribal state, has recorded the highest fall in SRB, from 968 in 2017 to 931 in 2019.
2. Among larger states, Telangana has recorded the biggest improvement, from 915 to 953, followed by Uttarakhand, where the SRB went from 929 to 960.

• Natural birth rate: The World Health Organisation (WHO) estimates that the natural sex ratio at birth is about 952 females to every 1,000 males. It can also be seen as 105 boys born for every 100 girls born. So, the ratio is 1 : 1.05 (girl : boy).

1. Six states have an SRB higher than 952. Arunachal Pradesh had a ratio of 1,024 followed by Nagaland and Mizoram, which recorded 1,001 and 975 respectively, a significant improvement
2. In Kerala, the SRB was still a high 960 but has worsened from 965 in 2017
3. Similarly, in Himachal Pradesh, it has been steadily worsening and is now 918
4. Punjab and Chandigarh, notorious for sex selective abortions, showed significant improvement as did Odisha, where it went up from 930 to 947.

• How to calculate: To avoid any distortions, the SRB is now calculated only after excluding births registered more than a year after the event. The result of this has been that the SRB is not available for states like Bihar, Jharkhand, Maharashtra or Uttar Pradesh since the data on delayed registration was not submitted by these states. A look at the ratio of male and female births registered in these states shows that barring Jharkhand, where it is just 881, it is well above 900 in the rest.
• Summary: It is safe to assume that with the possible exception of Jharkhand, the SRB is over 900 for all states. Even Jharkhand just may have an SRB over 900.

Class 12th evaluation: 30:30:40 weightage for class 10, 11 and 12 scores

 

• The story: Fourteen lakh Class 12 students from the Central Board of Secondary Education (CBSE) will be assessed on the new criteria. The Council for the Indian School Certificate Examinations (CISCE) is also expected to largely follow the CBSE formula with some additions. The final score of a Class 12 student will be determined by the CBSE based on his performance in classes 10, 11 and 12 in a 30:30:40 ratio, while the CISCE will also take into account the overall performance in the last six years, as per the evaluation criteria submitted by school boards before the Supreme Court.
• The CBSE Class 12 formula: For the theory section, 40% weight will be given to marks obtained in school unit tests, mid-term exams and pre-board exams in Class 12. Another 30% will go to the final exam results of Class 11. The remaining 30% will be based on the “best of three” subjects’ average score in Class 10. The Class 10 scores are being added to the evaluation formula to bring in a standardised and objective indicator, the CBSE conveyed in its affidavit before the apex court. The practical/internal assessment of Class 12 will be “on actual basis” as uploaded by the school on the CBSE portal. It has also been made clear that the total marks awarded should be in consonance with the past performance of the school in Class 12 board examinations. CBSE results of Class 10 and 12 are expected to be out by July 20 and by July 31, respectively. In case a student is not able to meet the qualifying criteria, the student will be placed in the “Essential Repeat” or “Compartment” category. Those not satisfied with this evaluation formula will be permitted to opt for a physical exam, as and when the pandemic situation eases up.
• Results committee: Every school will have to set up a five-member ‘Result Committee’ to handle all result calculation matters. This committee will be chaired by the school principal and have on board two senior-most teachers of the school teaching in Class 12 besides two teachers of Class 12 from a neighbouring school. Assistance of a teacher with an IT background is also advised. Subject teachers are to be present in committee deliberations on subject-specific performance assessment.
• Other issues: To ensure standardisation of Class 11 and 12 scores awarded internally by schools, each school has been asked to internally moderate the marks by using a reliable reference standard which could be clearly explainable.

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

Chairman & CEO: Satya Nadella gets top job at Microsoft

 

• The story: Satya Nadella was unanimously elected as executive chairman of Microsoft in June 2021, three decades after he joined the iconic software maker that has since transformed into a cloud computing giant under his watch. Today, Microsoft is the world’s second most valuable company after phone maker Apple. Nadella is only the second chief executive officer, after cofounder Bill Gates, to also serve as the chairman of the $143 billion global technology corporation.
• Magic touch: The soft-spoken 54-year old, architect of Microsoft’s aggressive makeover into one of the world’s leading providers of cloud computing services under the Azure brand, has overseen the rise in the company’s market capitalisation by a whopping 600% to nearly $2 trillion, while revenues have nearly doubled from $77.85 billion in financial year 2013. Nadella replaced Steve Ballmer as CEO of the Seattle-headquartered giant in 2014, at the same time that Gates stepped down as chairman of the company's board to be replaced by John Thompson.
• Many Indians: Nadella joins a long list of India-born executives who now occupy the chair at some of the world’s largest corporations. Fellow-Hyderabad native Shantanu Narayen, a friend and guide to Nadella, has been the CEO and chairman of Adobe since December 2007. Mastercard elevated its CEO Ajaypal Singh Banga as its chairman in January 2021. Arvind Krishna, IBM CEO was elevated as Chairman in December last year and Google CEO Sundar Pichai was elevated as CEO of Alphabet, the holding company in December 2019, after founder Larry Page stepped down.
• History: Nadella took charge at Microsoft at a time when the personal computer-focused company was struggling to make the shift to a world of mobile-led computing and was steeped in corporate culture that accorded primacy to internal competitiveness. Nadella brought in fundamental changes by introducing a collaborative team culture while shifting the business focus from selling yearly software licences to the pay-as-you-rent model on the cloud. Microsoft has also moved to partner with arch rivals such as Apple that has helped install Office software on iPhones, the de facto device for enterprise users globally.

India at 43rd rank on IMD's World Competitiveness Index

 

• The story: India maintained 43rd rank on an annual World Competitiveness Index compiled by the Institute for Management Development (IMD) that examined the impact of COVID-19 on economies around the world this year.
• Details: The 64-nation list was led by Switzerland, while Sweden has moved up to the second position (from sixth last year), Denmark has lost one place to rank third, the Netherlands has retained its fourth place and Singapore has slipped to the fifth place (from first in 2020).

1. At eighth, Taiwan reached the top-10 for the first time since the ranking began 33 years ago (moving up from 11th last year). The UAE and the USA remain in their same spots as last year (9th and 10th, respectively).
2. The top-performing Asian economies are, in order, Singapore (fifth), Hong Kong (seventh), Taiwan (eighth) and China (16th).

• What it checks: The IMD World Competitiveness Ranking ranks 64 economies and assesses the extent to which a country promotes the prosperity of its people by measuring economic well-being through hard data and survey responses from executives. This year, the rankings expose the economic impact of the pandemic across the globe. Among the BRICS nations, India is ranked second after China (16), followed by Russia (45th), Brazil (57th) and South Africa (62th).
• India's rank: India's improvements in the government efficiency factor are mostly due to relatively stable public finances (despite difficulties brought by the pandemic, in 2020 the government deficit stayed at 7 per cent) and to the positive feedbacks we registered among Indian business executives with respect to the support and subsidies provided by the government to the private companies. The short term performance of India's economy will depend on its ability to address the pandemic.

1. The report finds that qualities such as investment in innovation, digitalisation, welfare benefits and leadership, resulting in social cohesion have helped countries better weather the crisis the best and thus ranked higher in competitiveness.
2. Top-performing economies are characterised by varying degrees of investment in innovation, diversified economic activities, and supportive public policy, according to the experts at the World Competitiveness Center.

• Summary: The ranking, produced annually by the IMD World Competitiveness Center, measures the prosperity and competitiveness of 64 nations by examining four factors -- economic performance, government efficiency, business efficiency, and infrastructure.

World Day to Combat Desertification and Drought

 

• The story: The "World Day to Combat Desertification and Drought" was observed on June 17, 2021 to raise awareness on land degradation, desertification and drought.
• Points to note: This is a unique moment to remind about land degradation neutrality which can be achieved through problem-solving, strong community involvement and co-operation across all the levels. India is on track to achieve target of land degradation neutrality and will restore 26 million hectares of degraded land by 2030.
• World Day to Combat Desertification and Drought: The United Nations observes this day on June 17, every year. Its purpose is to raise awareness on existing desertification and drought and highlighting methods to prevent desertification & recovering from drought. This day was proclaimed by a United Nations General Assembly Resolution on January 30, 1995 following the day when United Nations Convention to Combat Desertification was drafted.
• 2030 Agenda for Sustainable Development: This day seeks to protect planet from degradation through sustainable consumption & production and sustainably managing its natural resources. It also takes urgent action on climate change to support the needs of present and future generations. The SDG Goal 15 focuses on “Life on Land”. It officially reads as “Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, halt & reverse land degradation and halt biodiversity loss”.

Hebbal-Nagawara Valley Project

 

• The story: Environmentalists are opposing the proposal to clear over 6,000 trees in Singanayakanahalli to construct a lake under Hebbal-Nagawara Valley Project by Minor Irrigation Department in Karnataka. The Forest Department, in a recent notification, proposed to fell 6,316 trees.
• Hebbal-Nagawara Valley Project: This project was launched with the aim of filling 65 tanks in Bengaluru Urban, Rural and Chickballapur. The Bengaluru lake was the first lake to receive treated water from this project. The project was to act as an impounded reservoir to supply water in 11 other lakes in this region. Direct use of treated water for drinking and agricultural purposes was prohibited but farmers were of the view that, project is increasing the water table.
• The trouble: Activists are questioning the need and logic of removing such huge number of trees. The Hebbal lake is located in Bangalore at the mouth of National Highway 7, near the junction of Bellary Road and Outer Ring Road. These lakes were created in 1537 by Kempe Gowda. It was formed by damming natural valley systems. It spreads over an area of 75 ha with plans for extending it up to 143 ha.

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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