Daily Current Affairs - Civil Services - 13-07-2021

Useful compilation of Civil Services oriented - Daily Current Affairs - Civil Services - 13-07-2021

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• SECTION 1 - TEN NEWS HEADLINES

1. World Economy - Onion export ban dispute at WTO - India is second largest onion producing country after China. Now, USA and Japan dragged India to the World Trade Organisation (WTO) over the frequent ban imposed on onion exports. Both have alleged that the export ban without prior notice creates problems for importing countries. Also, onion growers in India demanded that the centre draft a comprehensive policy on the import and export of onion instead of taking such ad hoc decisions. Onion growers have suffered losses due to the erratic ban on onion exports, and now it is becoming an irritant in the bilateral trade relationship with countries like Bangladesh. Pakistan has started competing with Indian onions share in the Gulf market recently. In FY21, India exported $378 million worth of onions, 15% higher than the previous year. The top exporting destinations were Bangladesh Malaysia, UAE and Sri Lanka.
2. Governance and Institutions - ‘Right to Repair’ movement - In recent years, countries have been attempting to pass effective 'right to repair' laws. The movement is facing tremendous resistance from tech giants such as Apple and Microsoft. The movement traces its roots back to the very dawn of the computer era in the 1950s, and its goal is to get companies to make spare parts, tools and information on how to repair devices available to customers and repair shops, to increase the lifespan of products and to keep them from ending up in landfills i.e., electrical waste (e-waste) generation. It will contribute to circular economy objectives by improving the life span, maintenance, re-use, upgrade, recyclability and waste handling of appliances. The US President called on the Federal Trade Commission (FTC) to force tech companies to allow consumers to fix their own electronic devices - either themselves or using a technician of their choice. As of 2021, almost all of the 50 US states have proposed a right to repair bill. The UK government introduced right-to-repair rules with the aim of extending the lifespan of products by up to 10 years.
3. Science and Technology - Suborbital flights - With the era of space tourism dawning upon mankind, terms like orbial and sub-orbital flight are popular now. When the launched spacecrafts cross the ill-defined boundary of space, they won’t be going fast enough to stay in space once they get there, and will be “Suborbital”. If a spacecraft or anything else reaches a speed of 28,000 km/h or more, instead of falling back to the ground, it will continuously fall around the Earth. That continuous falling is what it means to be in orbit and is how satellites and the Moon stay above Earth. Anything that launches to space but does not have sufficient horizontal velocity to stay in comes back to Earth flies a suborbital trajectory. So it won’t complete one orbital revolution (it does not become an artificial satellite) or reach escape velocity. Those aboard the suborbital flights will for a few minutes be in space, experience a few minutes of weightlessness and may also be called 'astronauts'!
4. Arts Culture and Literature - National Archives of India - Culture Minister G. Kishan Reddy said the National Archives’ records related to freedom fighters would be digitised within a year as a part of the commemoration of 75 years of Independence next year. The National Archives of India is an Attached Office under the Ministry of Culture. It was established in 1891 at Kolkata(Calcutta) as the Imperial Record Department. Following the transfer of the capital from Calcutta to Delhi in 1911, the present building of the National Archives of India was constructed in 1926 in Delhi. There are over 50 lakhs files/documents presently in the holdings in the National Archives of India.
5. Polity and Constitution - Konga Nadu plan may break Tamil Nadu - A list of new Union Cabinet ministers issued by the BJP has triggered a debate in political circles in Tamil Nadu, as well as on social media, by referring to ‘Kongu Nadu’, the informal name for a region in the western part of the state. The list mentions new minister L Murugan as hailing from ‘Kongu Nadu’. This has led to allegations that the BJP is trying to bifurcate the state, with the ruling DMK-Congress alliance saying the “agenda” will not succeed. It has also been considered an AIADMK stronghold in the recent past, and is also where the BJP’s limited influence in the state is concentrated. Similar allegations surfaced about West Bengal, earlier.
6. Indian Economy - International Trade Finance Services Platform (‘ITFS’) - IFSCA issued a framework for Setting up and operating International Trade Finance Services Platform (‘ITFS’). The International Financial Services Centres Authority (IFSCA) was set up vide IFSCA Act, 2019 to develop and regulate the financial products, financial services and financial institutions in the International Financial Services Centres (IFSCs). Now, IFSCA issued a framework for setting up and operating International Trade Finance Services Platform (‘ITFS’) for providing Trade Finance Services at International Financial Services Centres (‘IFSCs’). It will enable exporters and importers to avail various types of trade finance facilities at competitive terms, for their international trade transactions through a dedicated electronic platform viz, ITFS. This will help in their ability to convert their trade receivables into liquid funds and to obtain short term funding.
7. Infrastructure - Lower Arun Hydro project - A MoU was signed for execution of 679 MW Lower Arun Hydro Electric Project in Nepal between Satluj Jal Vidyut Nigam (SJVN) Central Public Sector Enterprise under Ministry of Power, Government of India & Investment Board of Nepal (IBN) in Kathmandu Nepal. The Lower Arun HEP (679 MW) is a downstream development of Arun-3 HEP, located in Sankhuwasabha and Bhojpur Districts of Nepal. The project will not have any reservoir or dam and will be a tail race development of 900 MW Arun3 HEP. It will have four francis type turbines. On completion the Project will generate 2970 million units of electricity per annum. It is scheduled to be completed in four years after commencement of construction activities and has been allocated to SJVN for 25 years on Build Own Operate Transfer basis.
8. Science and Technology - National Forensic Science University - The Union Home Minister inaugurated the newly built Center of Excellence for Research & Analysis of Narcotics and Psychotropic Substances of the National Forensic Science University in Ahmedabad. In June 2019, it was decided to establish this Center. Seven states of India have expressed their desire to open Colleges and Centers of Excellence affiliated to the National Forensic Science University, Gujarat. The Cyber ​​Defence Center and Ballistic Research Center set up in this Center are unique in Asia and the nation is on course to be self-reliant in this field.
9. Social Issues - Third Covid wave has started already: Claim - A Hyderabad-based physicist has claimed that the third wave of COVID-19 may have already set in on July 4, 2021. Based on trends over 15 months, Dr Vipin Srivastava, the former Pro Vice Chancellor of University of Hyderabad, said the pattern of the new COVID-19 cases and deaths since July 4 mirrors the graph of the first week of February 2021. Meanwhile, India's top doctors' body, the Indian Medical Association (IMA) appealed to the Central and state governments to not let the guard down on the Covid front warning that a third wave was just around the corner. It expressed pain over complacency shown by authorities and the public in various parts of India at this crucial juncture. "Tourist bonanza, pilgrimage travel, religious fervour are all needed but can wait for a few more months. Opening up these rituals and enabling people without vaccination to go scot-free in these mass gatherings are potential super spreaders for the Covid third wave," it said.
10. Science and Technology - Various updates - (a) Google and Alphabet's CEO Sundar Pichai told BBC that "free and open internet is under attack" globally. He was responding to a question on whether the Chinese model of the internet was on the rise. Many countries "are restricting the flow of information" and the idea of an open internet is taken for granted, Pichai added. (b) After a solar flare caused a radio blackout over the Atlantic Ocean, a solar storm is approaching the Earth at a speed of 1.6 million kilometres per hour, as per NASA. The storm is likely to hit Earth's magnetic field on 13th July and may affect power supply, GPS and phone signals. Satellites in Earth's upper atmosphere may be affected. (c) During a US trial over SolarCity's acquisition, billionaire Elon Musk said he tried "very hard not to be the CEO of Tesla, but I have to or frankly Tesla is going to die". He added "I prefer to spend my time on design and engineering" rather than being the boss of anyone. He also insisted that the board controlled Tesla. (d) Central bank digital currencies (CBDCs) have the potential to enhance the efficiency of cross-border payments, the World Bank, IMF and BIS said in a report. "CBDCs offer the opportunity to start with a 'clean slate'," they wrote. The report suggests that cross-border payments could become faster, cheaper, and more transparent with CBDCs but countries would need to work together.

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• SECTION 2 - DAILY CURRENT AFFAIRS

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

Industrialist Gautam Adani thinks consumption may take economy to $15 trn level

• The story: India's powerful industrialit Gautam Adani has said that consumption by India’s middle class will help create a $15-trillion economy in two decades and give businesses opportunity for growth. He also rejected "reckless, irresponsible reporting" about the company’s shareholding in June 2021 that led to a sharp fall in share value. (Fact is today's GDP is worth $2.8 trillion, and to reach $15 trillion, it needs to grow by more than five times overall)
• Five trillion is certain: Adani said that India’s target to be a five-trillion-dollar economy in four years should not be doubted. He thinks it is an inconsequential question. He also feels that the pandemic has taught good lessons to the world and India.

1. Adani said that India will be 5 trillion-dollar economy and then go on to be a 15 trillion-dollar-plus economy over the next two decades.
2. India will emerge as one of the largest global markets, both in terms of consumption size and market cap.
3. There will be bumps along the road, as has been the case in the past, and is expected to be the case in the future. But there is no doubt that the largest middle class that will ever exist, augmented by an increase in the working age and consuming population share, will have a positive impact on India’s growth as demographic dividend kicks in.

• Share price drop: Adani said the group's focus is on creating long-term sustainable value. He said that a few media houses indulged in reckless and irresponsible reporting related to administrative actions of regulators, causing unexpected fluctuations in the market prices of Adani stocks. Some small investors were affected by this "twisted narrative" in which some commentators and journalists seemed to imply that companies have regulatory powers over their shareholders and that companies can compel disclosure.
• Various group firms:

1. Adani Ports and Special Economic Zone (APSEZ) had become an integrated ports and logistics company. In financial Year 2021, APSEZ crossed a landmark after its share of India’s port-based cargo business rose to 25% and the container segment market share grew to 41%. It continued to diversify further, with LNG & LPG business in Mundra added to the portfolio and LNG operations being added in Dhamra. Adani claimed he was running the biggest port company in the world.
2. Adani Green Energy, in 2020, became the largest solar company in the world, following the acquisition of SB Energy’s five-gigawatt portfolio, at an enterprise valuation of about $3.5 billion. He again claimed there was no other company like it anywhere else.
3. Through Adani Enterprises, the group made its move into airports. Today, one of every four passengers in India flies through an Adani airport. He again claimed that no other company anywhere in the world has 25% share of total market.

• I am the king: Adani proudly acclaime that "whatever businesses the group is in – seaports, airports, logistics, natural resources, thermal and renewable power generation, transmission, distribution, data centres, defence, agri and food, real estate, city gas utilities, and several others – all of them are individually high growth businesses but every one of them has adjacencies within themselves as well as new sectors we can move into.”

Factory output rises 29.3% on low base

• The story: India’s industrial production (as measured by IIP) grew 29.3 per cent in May '21 as compared to the same period in 2020, as the impact of a low base continued for yet another month. In May 2020, factory output, measured by Index of Industrial Production (IIP), contracted 33.4 per cent, as factories remained shut due to the imposition of the nationwide lockdown.
• Clarification: "The indices are to be interpreted considering the unusual circumstances on account of the Covid-19 pandemic since March 2020," the ministry of statistics and programme implementation said.

1. On a sequential basis, IIP fell nearly 8 per cent from April 2021, making the impact of the state-wise lockdowns during the second wave of the pandemic in May 2021 evident.
2. The sequential fall in activity levels also reflected in manufacturing activity as well as electricity generation. To get a real picture, the real comparison should be done with pre-pandemic data. Compared with May 2019, the industrial output is lower than the current level.
3. Covid 2.0 was a setback for the industrial output, which had surpassed the pre-Covid-19 level both at the aggregate and also at the use-based classification level in March 2021. Clearly, FY22 has not begun on an encouraging note despite the fact that during Covid 2.0 lockdowns, industries were allowed to remain operational with Covid protocols/lower employee headcounts.

• Total contraction: The cumulative contraction during April-May (2021-22) was 68.8 per cent, compared to a de-growth of 45 per cent during the same period a year ago. Factory output in April 2021 was 94.3 per cent of the February 2020 level. This clearly shows that some of the ground that industrial output had covered till March 2021 has been lost due to the impact of Covid 2.0 lockdowns imposed in different parts of the country.

1. Manufacturing sector output, which accounts for more than 77 per cent of the entire index, saw growth of 34.5 per cent YoY in May 2021 as compared to a contraction of 37.8 per cent during the same period a year ago.
2. A 9.5 per cent decline in manufacturing output from April can be attributed to restrictions imposed across states during the first two months of the current fiscal to control spread of the second wave.
3. Growth in electricity generation stood at 7.5 per cent YoY in May but witnessed a 7 per cent month-on-month contraction, mainly due to low commercial sector demand. Mining activity, which accounts for over 14 per cent of the entire index, grew 23.3 per cent YoY. However, on a sequential basis, it witnessed an uptick of 0.6 per cent from April.
4. As far as use-based classification is concerned, consumer durables output witnessed the sharpest expansion of 98.2 per cent in May 2021 as compared to a contraction of 70.3 per cent in May last year and fell nearly 28 per cent sequentially.
5. Consumer non-durables output grew 0.8 per cent in May 2021, as compared to a degrowth of 9.7 per cent and 3.7 per cent in May 2020 and April 2021, respectively. Sequential decline is indicative of weak consumer demand.

• Summary: Capital goods output, which is reflective of the private sector investment scenario, grew 85.3 per cent, while intermediate goods grew 55.2 per cent in May. On a discouraging note, the index levels for the IIP, its three sectors and all the use-based categories in May 2021 were lower than the pre-Covid levels of May 2019.

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

Ramsar site East Kolkata Wetlands damaged; Measly compensation awarded

• The story: The cost of damage caused by garbage dumping and contamination of the 55-acre East Kolkata Wetlands, a Ramsar site, is Rs 1.46 crore, according to a joint report by state and central government agencies. Experts said this was ridiculous, and the actual cost is much higher and the duration of the study was very short.
• The study was carried out in October 2020 over three days, which the experts feel was too short for this kind of assessment. The report was ordered by the National Green Tribunal in context to a petition filed by a local environmentalist in May 2019.

1. Nearly 3,00,000 metric tonnes of solid waste has been dumped over Mollar Bheri (water body) in Salt Lake since the city came up in the 1970s in the northeastern fringes of Kolkata.
2. The study was done by West Bengal Pollution Control Board, National Environmental Engineering Research Institute (NEERI) and Central Pollution Control Board. The investigation found that the levels of several highly toxic heavy metals in the areas adjoining the dumping site “violate the acceptable limits for pond water and ground water”.
3. The petitioner Subhas Datta had alleged that the dumping of waste in Mollar Bheri by Bidhannagar Municipal Corporation and other urban local bodies has severely polluted the water bodies.

• Claims were correct: The report submitted to NGT vindicated Datta’s claims. It said that "It is observed that attributes like TDS (total dissolved solid), alkalinity, hardness, magnesium and TC (total colliform) … violates the acceptable limits. Volumes of lead, iron, manganese, cadmium, zinc and aluminum violate the acceptable limits for the pond water and that of aluminum, manganese, iron, cadmium violate the acceptable limits for the ground water."
• Toxic hazard: Most of the metals mentioned are highly toxic and contaminates aquatic plants and animals, particularly fishes. The toxins pose health hazards to a sizable population of Calcutta and Bidhannagar who consume these fishes, said a public health expert. The study was completed in haste during monsoon when the pollution level naturally get diluted, and the agencies should have consulted an environmental economist. The damage cost has not been taken into account for most toxic metals due to “lack of damage values available”, the authors wrote in the report.
• Mollar Bheri: The site is highly vulnerable to the environmental impacts from solid waste dumping, poses a potential threat to the surrounding water bodies and also contaminate the ground water table. The area is a legacy waste dumpsite of concern, where unsegregated solid waste was accumulated through December 2019. Mollar Bheri is part of a unique ecosystem where 234 ponds are inter-connected, the report said. A senior official from the environment department accepted that the report should be reviewed.

Chinese ship waste endangering reefs

• The story: Many Chinese vessels have dumped human waste and wastewater for years in a disputed area of the South China Sea, causing algae blooms that have damaged coral reefs and threatened fish in an unfolding catastrophe. These claims were made by US experts.
• What images show: Satellite images over the last five years show how human waste, sewage and wastewater have accumulated and caused algae in a cluster of reefs in the Spratlys region where hundreds of Chinese fishing ships have anchored in batches. At least 236 ships were spotted in the atoll, internationally known as Union Banks, on June 17, 2021, alone. China has claimed South China Sea virtually in its entirety.
• Movement is crucial: The hundreds of ships that are anchored in the Spratlys are dumping raw sewage onto the reefs they are occupying. Chinese officials did not react to assessment of damage, but said they have taken steps to protect the fisheries stock and the environment in the South China Sea. Aside from the Chinese, Vietnamese forces have also occupied some coral outcrops in Union Banks, which is also claimed by the Philippines, although it has no presence in the vast atoll.
• Huge problem: Experts say this was a catastrophe of epic proportions and we are close to the point of no return. They warned that schools of fish, including migratory tuna, breed in the reefs that are being damaged and could cause fish stocks to considerably decline in an offshore area that is a key regional food source. (Separately, China's military said it chased a US warship out of another disputed area of the South China Sea on 12th July after Washington warned an attack on the Philippines might activate a mutual defense treaty.)
• China and the Philippines: China is increasingly assertive about pressing its territorial claims, which are fueling tension with neighbors including Japan, India, Vietnam and the Philippines. China's PLA (army) said it sent ships and planes after the USS Benfold entered waters claimed by Beijing around the Paracel Islands.

1. In March, Philippine authorities spotted more than 200 Chinese fishing vessels at Whitsun Reef, in the northeastern periphery of Union Banks, and demanded that China withdraw them from the area. China ignored the demand for weeks, while continuing to assert the reef is its own territory.
2. The Philippines argued that Whitsun Reef lies well within an internationally recognized stretch of waters where it has exclusive rights to exploit fisheries, oil, gas and other sea resources.
3. It cited the international tribunal's 2016 ruling that invalidated China's vast claims to the waterway on historical grounds and unanimously upheld the Philippines' sovereign rights to the so-called exclusive economic zone.
4. The protesters lashed out at President Rodrigo Duterte, who has nurtured closer ties with Beijing, for refusing to aggressively demand that China comply with the landmark ruling.

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

Foreign affairs update

• WHO slams third vaccine booster: The World Health Organization chief Tedros Adhanom Ghebreyesus singled out vaccine makers Pfizer and Moderna for criticism as the two companies push for a third vaccine shot to further boost immunity levels against the virus. Offering a reminder that current two-dose vaccine regimens offer long-term immunity, Tedros said that the “priority now must be to vaccinate those who have received no doses and protection.” Mike Ryan, the head of the WHO’s emergencies program was more blunt. “What part of ‘This is a global crisis’ are we not getting?” he said. “We will look back in anger and we will look back in shame if we don’t now move to use the increasing [vaccine] production capacity that is coming on line … to protect the most vulnerable, protect the frontline health workers around the world.”
• Jamaica calls for reparations: Jamaica is to soon ask the United Kingdom for compensation, potentially totaling billions of dollars, to address the damage done by the Atlantic slave trade in the former British colony. Although a total figure for reparations is still being debated, Jamaican lawmaker Mike Henry has suggested 7.6 billion pounds ($10.5 billion)—a contemporary figure roughly equivalent to the 20 million pounds paid in the 19th century by the British government to compensate slaveholders after the British Parliament abolished the practice of slavery.
• World hunger on the rise: After five years of relatively stable numbers, world hunger shot up last year amid the coronavirus pandemic, according to a new United Nations report. The number of people facing hunger rose by 118 million to around 768 million in 2020—10 percent of the world’s population. Nearly one in three people worldwide didn’t have access to adequate food last year—320 million people more than in 2019.
• Brazil's President under fire: In Brazil the Supreme Court authorised an investigation into Jair Bolsonaro for failing to comply with his public duty. The case claims that the president overlooked irregularities in a deal on a covid-19 vaccine, Covaxin. A senate inquiry into the government’s handling of the pandemic is also looking into allegations that one official asked for a $1-per-dose bribe to purchase the AstraZeneca vaccine. Thousands of Brazilians took to the streets, the third mass protest in just over a month to call for Mr Bolsonaro’s impeachment.Ever Given deal: Egypt agreed to a compensation deal with the owners and insurers of the Ever Given, which ran aground and blocked the Suez canal for six days in March, seriously disrupting global trade. The terms were not made public. Egypt, which had demanded $550m, refused to release the vessel until a deal was reached.
• End of Covid restrictions: Britain’s prime minister, Boris Johnson, confirmed that covid-19 restrictions would end in England on July 19th. The vaccination campaign has gone well, and although cases are surging and hospital admissions rising sharply, the number of deaths remains low. Social distancing will end, as will the mandatory use of face masks, a controversial topic in Britain. The chief medical officer named three situations where he would still wear a mask.
• Covid updates: Luxembourg’s prime minister, Xavier Bettel, was in a serious but stable condition in hospital after contracting covid-19. In a reciprocal deal Israel said it would send 700,000 doses of the Pfizer vaccine that are about to expire to South Korea, where infections are rising. South Korea will return the same number of freshly produced jabs to Israel in September and October. Sydney’s two-week lockdown was extended for another week. Australia’s vaccine programme is not going well. A study found that men in England have been 30% more likely than women to test positive for covid-19 recently. It blamed football fans cramming into pubs to watch the Euro tournament.

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

Governance in UP - a letter of complaint

• The story: A group of 74 former bureaucrats and police officers have written an open letter alleging a "complete breakdown of governance" and "blatant violation of rule of law" in Uttar Pradesh. The letter was endorsed by over 200 eminent citizens. In the four-page letter, the IAS, IPS, IFS officials alleged arbitrary detentions and torture of and police attacks on peaceful protesters, demanded an end to extra-judicial killings, targeting of Muslim men with the law against "love jihad", alleged misuse of the National Security Act in the name of cow slaughter and against dissenters.
• Constitutional values dying: The letter expressed a sense of mounting alarm that the present ruling regime in UP has ushered in a model of governance which swerves further and further away from the values of the Constitution and the rule of law with each passing day. The letter also sought that the Covid crisis in the state be properly handled, pointing to the uncounted deaths and the collapse of the healthcare system.
• Facts: The letter provided data and examples under every head. Alleging crackdown against peaceful protesters, it mentioned the case of Kerala journalist Siddique Kappan, who was arrested while on his way to Hathras to report on the brutal gang-rape of a Dalit woman and the "complicity of the administration in the hurried overnight cremation of her body that had caused national outrage". It reminded that Kappan had spent more than 200 days in prison. More recently, these repressive measures have taken the form of punitive actions against those highlighting lethal shortcomings in UP's healthcare system.
• 2022 elections: Pointing to the assembly elections in the state due in 2022, the letter claimed: "Since coming to power, the bias of the present government of UP against Muslims has been open and uninhibited… Further, keeping in mind the forthcoming elections, we apprehend that such actions by the UP government, if not controlled, may cause communal polarisation and disturbances."
• Precedence: The letter writers are part of a group that had flagged the issue of the appointment of a new administrator in Lakshadweep and the situation after that.

Indian corporates paying record dividends

• The story: India Inc. paid record dividends in FY21 despite the tough Covid times, due to recovery in earnings, cashflows and improved balance sheets due to low-interest rates. Equity dividends paid by the top 155 of NSE 200 companies jumped 38 per cent or Rs 61,000 crore in FY21 compared with FY20.
• More dividends: The dividend payouts are at an all-time high as companies made record profits. With the pent-up demand following the Covid-led lockdown last year, companies’ profitability growth has been high. Companies have been reporting good profit numbers since the September 2020 quarter, which was replicated in the December 2020 and March 2021 quarters too.

1. PSUs like BPCL, Indian Oil, NTPC, SBI, HPCL, Coal India and SAIL contributed the maximum to the dividend kitty in FY21. Among private companies Hindustan Unilever, Infosys, Ambuja Cement, Britannia, Tech Mahindra and L&T significantly increased dividends for the period.
2. Cost-cutting efforts and tightening working capital requirements helped firms, especially the large ones, to report better earnings. While the drop in interest rates has benefited the companies’ bottom line, the larger conglomerates have cornered a better market share. This drove strong profitability, enabling better dividend payouts. While the bigger companies managed costs, it was clearly tough for smaller companies.

• Big profits: For the Nifty 500 companies, profitability in the December 2020 quarter stood at Rs 2.20 lakh crore and will be even higher in the March quarter. State-owned oil marketing company Bharat Petroleum declared a record Rs 17,137 crore dividend in FY21 compared with Rs 3,245 crore paid in FY20. The firm received Rs 9,876 crore from the sale of its 61.5 per cent stake in Numaligarh Refinery in Assam. Consumer major Hindustan Unilever, whose net profits have risen 18 per cent in FY21 to Rs 7,995 crore, distributed Rs 9,518 crore compared with Rs 5,400 crore it paid in FY20. IT bellwether Infosys paid Rs 27 per share in FY21 compared with Rs 17.50 in FY21; there is a 54 per cent increase in terms of the amount paid — from Rs 7,452 crore to Rs 11,502 crore.
• Investment cycle is dead: Companies see no reason to save money for capital expenditure in an economy starved of demand. With the economy slowing down, there is no re-investment cycle. With the fixed income yield coming down from 7-8 per cent to 3-4 per cent, it’s better to reward the shareholders through dividends. Several PSUs increased their payout ratio to fund the government’s fiscal situation. NTPC increased its payout ratio from 31 per cent to 40 per cent, Coal India raised its payout ratio from 66 per cent to 78 per cent while Indian Oil, HPCL, PowerGrid and NMDC, among others, increased their payout ratios drastically.
• Other observations: Indian markets showed resilience and scaled new highs amid encouraging corporate earnings in March 2021 quarter led by the upswing in key commodities prices and strong underlying demand prospects. Companies expect economic activity to bounce back by December 2021. GST collection of Rs 1.02 lakh crore for May 2021 (eighth consecutive month of more than Rs 1 lakh crore) was a testimony to robust domestic macroeconomics.
• Steep tax: To strengthen corporate governance practices and disclosure requirements, market regulator Sebi has notified new rules, including that top 1,000 listed firms will have to formulate a dividend distribution policy. However, shareholders are not too happy with raining dividends as the dividend income is taxable up to 43 per cent in the hands of the recipient, effective from April 2020. Budget 2020 had abolished dividend distribution tax on dividends paid by corporates and transferred the tax burden to the recipient. Earlier, an individual taxpayer was required to pay 10 per cent tax only if the dividend received from Indian companies was more than Rs 10 lakh. Also, no tax was payable on dividends received from mutual funds. As per the new rules, recipients of dividends would be liable to pay income tax according to their tax slabs.

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

New Union Ministry of Cooperation

• Cooperatives in focus: Indian cooperative sector is quite strong in some states and sectors - Maharashtra, Gujarat, Karnataka, Kerala, MP, Odisha - and the July 2021 decision to make a Union ministry of Cooperation is quite significant. Why do it?
• Scale of it: India has 8 lakh registered cooperatives, mostly in rural and semi-urban areas. More than 40 crore people are directly impacted, so controlling this means tremendous political leverage.
• Funding in cooperatives: The first funding in any cooperative is always from the members, who pool money as share capital to start the cooperative. At this stage, a State or the Centre can also become members and give some capital contribution. Later comes bank financing.

1. Loans can be taken from specialied bodies like National Cooperative Development Corporation (NCDC) as long-term loans, or working capital needs or making infrastructure
2. The key leverage for Union govt. is the "grant component under Central govt. scheme" as part of the NCDC infrastructure loans; it can be 15 to 30% and is favoured by most coops
3. NCDC: It is based at Delhi, under Ministry of Agriculture, and is a statutory body.
4. Funding also arrives when governments engage cooperatives in schemes like food processing, animal husbandry, rural employment, etc. They get grants.
5. AIF - Agriculture Infrastructure Fund - can give funds for storage infra creation

• Guarantors: Governments can also be guarantors of loans taken by cooperatives. Example: Chhattisgarh's Markfed borrows Rs.10000 cr p.a. from NCDC to procure foodgrains from farmers, and state stands guarantee for it.
• Why a new Ministry: Today, respective Ministries have some control over their cooperatives like NAFED (Agriculture ministry), Fiscopfed (Animal husbandry and fisheries ministry). But now the top policy decisions will be taken by Amit Shah directly, and a new Union versus State stage will be set. Why? States have major say in their cooperatives.
• Summary: The 97th amendment 2011 tried bringing uniformity in laws governing this sector in India, and asked for mandatory registration of cooperatives. The Supreme Court is now (2021) hearing a plea if that amendment hurts states' exclusive power to deal with cooperatives.

Speaker and Deputy Speaker - process of election

• The story: Maharashtra has been without a Speaker since February, 2021 while Lok Sabha and several State Assemblies are without a Deputy Speaker. The Constitution provides that the office of the Speaker should never be empty.
• Election of Speaker: The Constitution of India requires the Speaker to be a member of the House. Although there are no specific qualifications prescribed for being elected the Speaker, an understanding of the Constitution and the laws of the country is considered a major asset for the holder of the Office of the Speaker. Usually, a member belonging to the ruling party is elected Speaker. The process has evolved over the years where the ruling party nominates its candidate after informal consultations with leaders of other parties and groups in the House. This convention ensures that once elected, the Speaker enjoys the respect of all sections of the House.

1. Voting - The Speaker (along with the Deputy Speaker) is elected from among the Lok Sabha members by a simple majority of members present and voting in the House. Once a decision on the candidate is taken, his/her name is normally proposed by the Prime Minister or the Minister of Parliamentary Affairs.
2. Term of Office of the Speaker - The Speaker holds Office from the date of his/her election till immediately before the first meeting of the next Lok Sabha (for 5 years). The speaker once elected is eligible for re-election. Whenever the Lok Sabha is dissolved, the Speaker does not vacate his office and continues till the newly-elected Lok Sabha meets.

• Role and powers: The speaker has a wide-ranging role.

1. Interpretation - He/She is the final interpreter of the provisions of the Constitution of India, the Rules of Procedure and Conduct of Business of Lok Sabha and the parliamentary precedents, within the House.
2. Joint sitting of Houses - He/She presides over a joint sitting of the two Houses of Parliament. Such a sitting is summoned by the President to settle a deadlock between the two Houses on a bill.
3. Adjournment of sitting - He/She can adjourn the House or suspend the meeting in absence one-tenth of the total strength of the House (called the quorum).
4. Casting Vote - The speaker does not vote in the first instance but in the case of a tie; when the House is divided equally on any question, the Speaker is entitled to vote. Such a vote is called a Casting Vote, and its purpose is to resolve a deadlock.
5. Money Bill - He/She decides whether a bill is a money bill or not and his/her decision on this question is final.
6. Disqualifying members - It is the speaker who decides the questions of disqualification of a member of the Lok Sabha, arising on the ground of defection under the provisions of the Tenth Schedule. The 52nd amendment to the Indian Constitution vests this power in the Speaker. In 1992, the Supreme Court ruled that the decision of the Speaker in this regard is subject to judicial review.
7. Chairing the IPG - He/She acts as the ex-officio chairman of the Indian Parliamentary Group (IPG) which is a link between the Parliament of India and the various parliaments of the world. He also acts as the ex-officio chairman of the conference of presiding officers of legislative bodies in the country.
8. Constitution of Committees - The Committees of the House are constituted by the speaker and function under the speaker’s overall direction. The Chairmen of all Parliamentary Committees are nominated by him/her. Committees like the Business Advisory Committee, the General Purposes Committee and the Rules Committee work directly under his Chairmanship.
9. Privileges of the House - The Speaker is the guardian of the rights and privileges of the House, its Committees and members.

• Removal: Under following conditions, the speaker, may have to vacate the office earlier -

If he ceases to be a member of the Lok Sabha.
If he resigns by writing to the Deputy Speaker.
If he is removed by a resolution passed by a majority of all the members of the Lok Sabha.
Such a resolution can be moved only after giving 14 days’ advance notice. When a resolution for the removal of the Speaker is under consideration of the House, he/she may be present at the sitting but not preside.

• Deputy Speaker of the Lok Sabha: The Deputy Speaker is also elected by the Lok Sabha from amongst its members right after the election of the Speaker has taken place. The date of election of the Deputy Speaker is fixed by the Speaker (date of election of the Speaker is fixed by the President).

• Term of Office and removal - Like the Speaker, the Deputy Speaker remains in office usually during the life of the Lok Sabha (5 years). The Deputy Speaker may vacate his/her office earlier in any of the following three cases:

If he ceases to be a member of the Lok Sabha.

If he resigns by writing to the Speaker.

If he is removed by a resolution passed by a majority of all the then members of the Lok Sabha.Such a resolution can be moved only after giving 14 days’ advance notice.

• Responsibilities and powers - The Deputy Speaker performs the duties of the Speaker’s office when it is vacant. He/She also acts as the Speaker when the latter is absent from the sitting of the House. He/She also presides over the joint sitting of both the Houses of Parliament, in case the Speaker is absent from such a sitting. The Deputy Speaker has one special privilege, that is, whenever he/she is appointed as a member of a parliamentary committee, he/she automatically becomes its chairman.

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• 6. SCIENCE AND TECHNOLOGY (Prelims, GS Paper 3)

Micro-organisms and tea-making

• The story: People drink more than 200 crore cups of teac every day. New research has shown that the flavours of tea owe their origin to more than mere chemicals in tea leaves.
• Latest research: Tea producers have always assumed that the flavours of the most widely drunk varieties of this beverage, so-called black teas like Darjeeling, Assam and English Breakfast, were a consequence of some of the chemicals in tea leaves being oxidised while those leaves were being dried.

1. Researchers have found that like the flavours of more expensive and rarefied “dark” teas such as kombucha, Pu-erh and anhua, black-tea flavours are at least partly a product of fermentation. This would mean they could be manipulated by tweaking the mix of micro-organisms doing the fermenting.
2. To test this hypothesis researcher obtained some leaves from the Dongzhi tea plantation in Anhui province, China. They then sampled the microbes thereon before sterilising half of the leaves in mild bleach for five minutes.
3. After that (having washed the sterilised leaves thoroughly, to get rid of the bleach) they processed both the sterilised and the unsterilised leaves in the normal way (they withered, rolled, oxidised and dried them).
4. They then tested them all for microbes once more. They also tested the result of all this treatment in a more time-honoured manner, by brewing numerous cups of tea.

• Result: If oxidation were the main cause of chemical change in black-tea leaves as they were processed, the sterilisation would have made little difference either to the chemistry or the taste of the final product. But this was not the case. Black tea brewed from unsterilised leaves had, as per normal, lots of catechins and theanine, both of which made it flavourful. Tea made from sterilised leaves did not, and its taste suffered as a consequence. Black tea, then, seems to get its flavour in the same way that dark tea does.
• Which bugs are involved: The researchers are trying to identify the bugs involved. Once they do that, tweaking the microbial mixture to produce novel flavours should become possible.

Solar storm arrives on Earth on 13th July

• The story: A high-speed solar storm approached Earth at a speed of 1.6 million kilometres per hour, according to National Aeronautics and Space Administration (NASA). Its arrival will hit the planet’s magnetic field later today, affecting electricity supply and communication infrastructure around the world.
• Solar winds: These are powerful storms that travel throughout the Solar System at a speed of over one million miles per hour. These winds are visible in the halo around the Sun during an eclipse and sometimes when the particles hit the Earth’s atmosphere — they are seen as the aurora borealis or northern lights. As the Sun spins on its axis, it creates complex swirls and eddies of particles comprising of protons and electrons that flow towards the Earth and other planets of the Solar System. These flowing particles are called solar winds, which has the power of affecting telecommunications.
• First identified: The solar winds were first observed by physicist Eugene Parker, who in 1957 started research around the question "Are particles coming off of the sun?" Parker calculated the Sun’s corona was a million degrees hot and particles had to be flowing outwards expanding away from its surface, reaching speeds faster than that of sound.
• Geomagnetism: Earth is shielded by strong magnetic fields that protect it from the deadly radiations of the Sun. However, at times the Sun emits stronger flares throwing a billion tons of material into space. Shockwaves and material from these Coronal Mass Ejections (CME) could damage telecommunication across the world.
• 2021 solar flare: The solar flare, flowing from an equatorial hole in the sun’s atmosphere that was first detected on July 3, can travel at a maximum speed of 500 km/second. The satellites in the Earth’s upper atmosphere are also expected to get impacted by the incoming flares. This will directly impact GPS navigation, mobile phone signal and satellite TV. Power grids can also be hit by solar flares. The storm can also lead to a blackout of high-frequency radio communication for nearly an hour in a vast area. The Centre has marked the solar flares at X1 level, ‘X’ denoting the classification and the numerical suffix denoting the strength of the flare.
• Class of flares: Solar flares are massive explosions on the surface of the sun that release energy, light and high-speed particles into space. According to Nasa, the biggest flares are known as “X-class flares” based on a classification system that categorises solar flares as per their strength. The smallest ones fall under A-class, followed by B, C, M and X. The solar flare that hit Earth’s magnetic field in July was an X-class flare.

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

JJM and Acute Encephalitis Syndrome

• The story: The Jal Jeevan Mission (JJM) has provided tap water supply to more than 97 lakh households in five JE-AES (Japanese Encephalitis-Acute Encephalitis Syndrome) affected states. The five states with priority districts are Assam, Bihar, Tamil Nadu, Uttar Pradesh and West Bengal. The JJM envisages supply of 55 litres of water per person per day to every rural household through Functional Household Tap Connections (FHTC) by 2024. The Jal Shakti Ministry is the nodal ministry for the implementation of the scheme.
• Acute Encephalitis Syndrome (AES): The AES is a severe case of encephalitis transmitted by mosquitoes and is characterized by high fever and inflammation of the brain. The World Health Organisation (WHO) in 2006, coined the term AES to signify a group of diseases which seem similar to one another but are difficult to differentiate in the chaotic environment of an outbreak.

1. Vulnerable - The disease most commonly affects children and young adults and can lead to considerable morbidity and mortality.
2. Causative agents - Viruses are the main causative agents in AES cases, although other sources such as bacteria, fungi, parasites, spirochetes, chemicals, toxins, and noninfectious agents have also been reported over the past few decades. It is not vaccine-preventable.
3. Japanese Encephalitis virus (JEV) - It is the major cause of AES in India (ranging from 5%-35%). Herpes simplex virus, Nipah virus, Zika virus, Influenza A virus, West Nile virus, Chandipura virus, mumps, measles, dengue, scrub typhus, S.pneumoniae are also found as causative agents for AES.
4. Symptoms - Confusion, disorientation, coma, or inability to talk, high fever, vomiting, nausea, and unconsciousness.
5. Diagnosis - The National Vector Borne Disease Control Programme (NVBDCP) in India has set up countrywide surveillance for AES through sentinel sites with a focus on detecting Japanese Encephalitis (JEV). In the sentinel surveillance network, AES/JE is diagnosed by IgM Antibody Capture ELISA, and virus isolation is done in the National Reference Laboratory.

• In India: According to the NVBDCP, 10,485 AES cases were diagnosed in 2018 with 632 deaths across 17 states. India records fatality rate at 6% in AES, but the fatality rises to 25% amongst children. Bihar, Assam, Jharkhand, Uttar Pradesh, Manipur, Meghalaya, Tamil Nadu, Karnataka, and Tripura are worst affected.
• Efforts: To reduce morbidity and mortality the government of India developed a multi-pronged strategy with the convergence of the concerned ministries.

1. The Ministry of Health and Family Welfare - Strengthening and expanding JE vaccination, Strengthening of public health activities, Better clinical management of JE/AES Cases etc.Ministry of Jal Shakti for the provision of safe water supply.
2. Ministry of Women and Child development for providing high-quality nutrition to vulnerable children
3. Ministry of Social Justice and Empowerment for establishing District Disability Rehabilitation Centers for disability management and rehabilitation
4. Ministry of Housing and Urban Affairs for ensuring the supply of safe water in slums and towns
5. Ministry of Education to provide special facilities for disabled children for their education

Supreme Court wants Covid testing in mental health homes

• The story: The Supreme Court directed the Centre to ensure that people lodged in mental health establishments are tested for COVID-19 and are completely vaccinated at the earliest. A bench of Justices D Y Chandrachud and M R Shah took serious note of Maharashtra government's shifting patients lodged in mental health institutes to homes for beggars and asked it to discontinue the practice immediately saying it is counter-productive and runs against the provisions of the Mental Health Act.
• Details: The top court directed all the states and Union Territories to extend all cooperation and participate in the meeting of Ministry of Social Justice and Empowerment to be held on July 12. It also directed all the states and Union Territories to extend all cooperation and participate in the meeting of Ministry of Social Justice and Empowerment to be held on July 12. It asked the states/UTs to remove the discrepancies in figures submitted about the people who have been cured but are still languishing in mental health institutions or who still needs treatments.
• Summary: The bench said that from now on it will monitor the case and would start listing the matter after three weeks as it is very sensitive matter. The top court was hearing a plea filed by advocate Gaurav Bansal in which he has said that around 10,000 people, who are fit to be discharged, are forced to
• live in different mental hospitals across the country and institutes due to social stigma.

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

Ladakh: 100% first dose coverage done

• The story: Ladakh became the first Union Territory to vaccinate all residents and guest population; comprising of migrant labourers, hotel workers and Nepalese citizens earning their livelihood in the territory; with first dose of Covid-19 jab.
• Points to note: Desspite Ladakh’s low population, this was a good achievement because of challenging terrain, extreme weather and isolated centres of population. Many of the population are in fact difficult to access. As per data, total of 89,404 people from all eligible age groups have been administered with first dose of Covid vaccine. Second dose wa administered to 60,936 people. Vaccination was done in less than three months after third phase of vaccination started in India. About 6,821 Nepalese citizens living in UT were administered the vaccine.
• Ladakh: It is a region administered by India as union territory, comprising parts of larger Kashmir region, which has been a subject of dispute due to aggressive actions of Pakistan and China. Ladakh was established as a Union Territory on October 31, 2019 after passing “Jammu and Kashmir Reorganisation Act”.
• Region: Ladakh is bordered by Tibet Autonomous Region in east, Himachal Pradesh in south, Jammu & Kashmir and Gilgit-Baltistan in west while southwest corner of Xinjiang along the Karakoram Pass in north. Ladakh extends from Siachen Glacier in Karakoram range in north to main Great Himalayas in south. Eastern end of UT comprises of uninhabited Aksai Chin plains. Aksai Chin is claimed by Indian Government as part of Ladakh, however it is under Chinese control since 1962.

US approves Blue Origin for Human Space Travel

• The story: US's Federal Aviation Administration (FAA) has approved “Blue Origin license” in order to carry humans on New Shepard launch system into space. (Blue Origin is an American aerospace manufacturer and sub-orbital spaceflight services company. It is privately funded and is headquartered in Kent, Washington. It was founded in 2000 by Jeff Bezos who is also the founder & executive chairman of Amazon)
• Points to note: Former Amazon.com Chief Executive, Jeff Bezos, is to fly to space on July 20 through Blue Origin’s maiden crewed voyage. Blue Origin is authorized to carry humans while FAA license is valid through August, and wass approved to conduct these missions from its Launch Site One facility in Texas. This flight is coming after space-tourism rival Virgin Galactic successfully sent its crew to the edge of space.
• History: Virgin Galactic, Blue Origin, spaceX firm are working to usher in new era of routine commercial civilian space travel. Space travel has been popularized as “billionaire space race.” Proving rocket travel is safe for public is a significant key of developing a space tourism market which is going to be $3 billion market, as per an estimate of Swiss-based investment bank UBS.
• Space Tourism: It is human space travel for recreational purposes, just like on Earth! There are different types of space tourism such as orbital, suborbital and lunar space tourism. Orbital space tourism has been performed only by Roscosmos so far, but different agencies like Blue Origin & Virgin Galactic are working to develop suborbital space tourism vehicles.

Bihar's deaths due to lightning strikes

• The story: India’s second annual "Lightning Report" was recently published. It informs that lightning in India has become the biggest cause of death by forces of nature.
• Details: On July 11, 2021 lightning strikes killed about 70 people in different parts India, including Uttar Pradesh and Rajasthan.
• Findings of second annual Lightning Report: Bihar has reported most deaths because of lightning. In between April 1, 2020 to March 31, 2021 about 401 deaths were reported. It was followed by Uttar Pradesh where 238 deaths were reported in same period, which was followed by Madhya Pradesh with 228, Odisha with 156 deaths and Jharkhand with 132 deaths. Other states reported less than 100 deaths in same period. Bihar recorded a jump of 81% in deaths from 221 deaths in 2019-20 to 401 during April 2020 and March 2021.
• Lightning strikes: Overall, there has been a 34% increase in Lightning strikes in the country. It has increased from 1.38 crore strikes in 2019-2020 to 1.85 crore strikes in 2020-2021. Punjab reported a 331% rise in thunderbolt strikes. Bihar witnessed 168% increase in lightning strikes. It is followed by Haryana (164%), Puducherry (117%), Himachal Pradesh (105%), and West Bengal (100%).
• Lightning: It is a huge spark of electricity in atmosphere between clouds, air, or ground. There are three kinds of lightning viz., Inter-cloud, Intra-cloud, and Cloud-to-ground. Humans are killed because of cloud-to-ground lightning. Greatest number of deaths were because people were standing under isolated tall trees while 25% of people were struck in open.

UK exports apple to India first time in five decades

• The story: The United Kingdom exported apple to India for the first time in 50 years! Exports of apple was welcomed by UK Secretary of State for International Trade Liz Truss, as a sign of strengthened trade partnership between the UK and India.
• Which partnership: Apples were exported under the Enhanced Trade Partnership, which was agreed by Prime Ministers of both the countries in May 2021. Enhanced Trade Partnership is considered as predecessor of Comprehensive Free Trade Agreement (FTA). Truss and Minister of Commerce and Industry Piyush Goyal formally signed the agreement, setting the goal of doubling bilateral trade between the United Kingdom and India by 2030.
• History: In May 2021, UK government started 14 weeks of talks, seeking public and corporate views before formally negotiating on UK-India FTA. According to UK, it wants to trade with India’s £ 2 trillion economy and the market of 1.4 billion consumers by removing barriers of doing business. Some of the measures include- elimination of tariffs of up to 150 percent on whiskey and 125 percent on British cars.
• FTA: A Free Trade Agreement (FTA) with India was done with the objective of facilitating UK service companies to do business in Indian market and enhance UK’s position as an international service hub. The trade between UK and India in 2019 was around £ 23 billion. Both the countries seek to double the trade value under roadmap 2030 timeline. India’s goods exports to UK reduced by 6.4% in Financial Year 2021 at $8.2 billion. Imports were also contracted by 26.17% to $4.95 billion. India is second largest investor in UK while UK has been second fastest growing G20 investor in India.

9.1 Today's best editorials to read

• We offer you 7 excellent editorials from across 10 newspapers we have scanned. 

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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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