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GS Paper: GS3

  • [pib] Novel Corona Virus (nCoV)

    The Union Ministry of Health and Family Welfare has been closely monitoring the situation after the reports of 41 confirmed cases of novel Corona virus (nCoV) including one death from Wuhan, China, 2020.

    About Novel Corona Virus

    • Corona viruses are large family of viruses, which cause illnesses to people and also circulate in animals including camels, cats and bats.
    • They cause illness ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome and Severe Acute Respiratory Syndrome.
    • 2019-nCoV is a new strain that has not been previously identified in humans.
    • Much remains to be understood about the new coronavirus, which was first identified in China earlier this month.
    • Not enough is known about 2019-nCoV to draw definitive conclusions about how it is transmitted, clinical features of disease, or the extent to which it has spread. The source also remains unknown.

  • [pib] APNA UREA – SonaUgle

     

    APNA UREA – SonaUgle

    • The Union Minister for Chemicals and Fertilizers launched the “APNA UREA – SonaUgle” brand of Hindustan Urvarak & Rasayan Limited (HURL).
    • HURL is Joint Venture Company promoted by the three Maharatna Companies i.e. Coal India Limited (CIL), NTPC Limited (NTPC) and Indian Oil Corporation Limited (IOCL) as the lead promoters with FCIL and HFCL as other two partners.
    • The commissioning of the HURL’s three Units in the states of UP, Bihar and Jharkhand will open forward and backward linkages for business activity in the Eastern part of India.
    • It will be instrumental in opening new avenues for the generation of income and employment in the Eastern part of our country.

  • TrueNat

    The WHO has endorsed TrueNat, an Indian indigenous molecular diagnostic tool for tuberculosis (TB) diagnosis.

    TrueNat

    • The TrueNat TB test is a new molecular test that can diagnosis TB in one hour as well as testing for resistance to the drug rifampicin.
    • The TrueNat MTB and MTB Plus assays also show comparable accuracy to the TB-LAMP assay as replacement tests for sputum smear microscopy.
    • The data for TrueNat MTB-Rif shows similar accuracy to WHO-approved commercial line probe assays.
    • It is developed by the Goa-based Molbio Diagnostics.
    • The company was provided with technical assistance and resources by the Foundation for Innovative New Diagnostics (FIND) to help commercialise Truenat.
    • ICMR had assessed and validated the diagnostic tool. It has high diagnostic accuracy as initial test to diagnose TB.
    • It will be used as an initial test thus replacing sputum smear microscopy.

  • Telecommunication Consumers Education and Protection Fund (TCEPF)

    The Telecom Regulatory Authority of India (TRAI) has informed that telecom service providers will need to deposit all unclaimed money of consumers, including excess charges and security deposit, in the Telecommunication Consumers Education and Protection Fund (TCEPF).

    Telecommunication Consumers Education and Protection Fund (TCEPF)

    • The TCEPF Regulations, 2007 have been amended to provide the basic framework for depositing unclaimed money of consumers by service providers, maintenance of the TCEPF and other related aspects.
    • Any unclaimed / unrefundable amount belonging to consumers in the TCEP fund will be utilized for the welfare measures of the consumers.
    • With this amendment, service providers will deposit any unclaimed consumer money of any form such as excess charges, security deposit, plan charges of failed activations, or any amount belonging to a consumer, which service providers are unable to refund to consumers.

    Why such move?

    • The TRAI observed that there is a need to bring clarity among service providers in depositing money which they are unable to refund to the consumers.
    • While some service providers were depositing money only on account of excess billing revealed in the audit, others were depositing unclaimed money such as security deposits and plan charges of failed activations.

  • [op-ed snap] Maoist rebellion: policy fade-out, policy fade-in

     Context

    When much is made of peace talks with rebels in Northeast India, avoidance of peace talks with Maoist rebels is strange.

    States left to deal with the Maoists

    • Scale and extent of the problem: Officially in 2019, there are 11 states and 90 affected districts.
    • State subject: This is because policing and maintaining law and order are matters devolved to states.
    • The approach adopted to deal with the problem: According to MHA-
      • Capacity building: Primarily by capacity building of the state governments.
      • Areas of capacity building: Capacity building is to be carried out in areas of security and development. This will continue with the-
      • Better police training.
      • Better intelligence gathering.
      • Reinforcing police stations in conflict zones.
      • And recruiting locals into auxiliary forces.
    • Support by MHA: MHA will continue to provide the Central Reserve Police Force (CRPF) and other paramilitaries under its command.
      • Support of NTRO: Intelligence gathering outfits such as the National Technical Research Organisation (NTRO).
      • NTRO has in the past year increased drone surveillance over the densely forested Abujhmad area in southwest Chhattisgarh, which remains the main rebel hub.

    The success achieved so far

    • Influence reduced to 90 districts: The policies so far has certainly contained the rebels across 90 affected districts.
    • Surrender and rehabilitation policy: Most Maoist-affected states in India have a surrender and rehabilitation policy.
    • Surrender policy along with search and destroy : Surrender policy rides in tandem with search-and-destroy missions that police and paramilitaries provide.
    • This pincer has massively depleted rebel leadership and ranks with regular killings, arrests, and surrender of its leaders and cadres.

    Return of conflict displaced people

    • It is crucial for the conflict-displaced to return to their homes.
    • Issues related to return of displaced: Agencies discourage those returning from going back to their old home and instead are offered state-mandated enclaves.
      • No or little economic imperatives: Those returning are offered little economic imperative besides daily wage labour and scrambling for government handouts.
      • Some government jobs: For some, jobs are offered in
      • That is, in any case, the present for much of the 50,000 or so who did not manage to escape to Telangana and elsewhere.

    Conclusion

    • The central government would do well to focus here and in beginning negotiations for peace.
    • The Left-wing rebellion, a reality for over 50 years, is difficult to end until poor governance is improved.

     

  • [op-ed snap] The perils of RBI’s fixation on inflation

    Context

    The RBI’s responsibility to regulate the financial sector may have taken a back seat after the adoption of inflation targeting as the main objective. Has a fixation with inflation rate made the RBI take its eyes off the loan books of the banks?

    Evolution of the role of the Central Banks

    • Maintaining financial stability: The establishment of some of the world’s oldest central banks was inspired by the goal of maintaining financial stability.
      • Harm to the depositors: It was recognised that when private commercial banks fail, whether due to malfeasance or misjudgement, they harm their trusting depositors.
      • Harm to the entire system: But when banks fail they not only harm the depositors they can also take down with them the rest of the financial system.
    • Banks lending to one another: The entire financial system also gets harmed when banks have lent to one another, which is not uncommon.
      • The collapse of credit: In the crisis that ensues, there is a collapse of credit which, in turn, leads to a downturn in economic activity.
    • Lender of last resort: To avoid this, the central bank was conceived of as the lender of last resort.
      • Prevention of run on the banks: Lender of last resort is the one that could pre-empt a run on banks and give them time to put their books back in order.
      • Regulation of banks: However, this was to be accompanied by the adoption of a tough regulatory stance.
      • Whereby the central bank would stay hawk-eyed towards the activities of banks, particularly risky lending.
    • Rise of neo-liberalism and change in a role: With the rise of neoliberalism, the central tenet of which is that markets should be given free play, the regulatory role of central banks took a back seat.
      • Inflation control as primary role: The Central banks came to be primarily mandated with inflation control.

    Inflation targeting and regulation of the financial market by RBI

    • Multiple indicator approach: In India, the RBI had earlier pursued a ‘multiple indicators approach’.
      • What was the multiple indicator approach: The approach involves concern for outcomes other than inflation, including even the balance of payments.
      • Discouraging the approach: Developments in economic theory discouraged ‘multiple indicators approach’.
      • It was argued that having economic activity as an objective of monetary policy leads to higher inflation.
    • Favouring low inflation over lower unemployment: Discouraging the ‘multiple indicator approach’ encouraged low inflation over low unemployment.
    • Inflation targeting as the sole objective of monetary policy: The Indian government also instituted inflation targeting as the sole objective of monetary policy.
      • The fixed target for the RBI: The RBI was permitted to exceed or fall short of a targeted inflation rate of 4% by a margin of 2 percentage points.
    • But have the RBI’s original mandate as a central bank been met?
      • IL&FS crisis: In 2018, within three years of the adoption of inflation targeting goal, a crisis engulfed IL&FS, a non-banking financial company in the infrastructure space.
      • Not a small player: It operated over 100 subsidiaries and was sitting on a debt of ₹94,000 crores.
      • Effects of default: Given this, IL&FS default had a chilling effect on the investors, banks and mutual funds associated with it both directly or indirectly.
      • PMC bank crisis: In 2019, a run on the Punjab and Maharashtra Co-operative Bank had to be averted by imposing withdrawal limits.
      • Outright fraud in PMC case: While in the case of IL&FS, some part of the problem may have been caused by a slowing economy, outright fraud underlay the crisis at PMC Bank.
      • Raghavendra Sahakara Bank case: In early 2020, curbs have had to be placed on withdrawals from the Bengaluru-based Sri Guru Raghavendra Sahakara Bank.
    • Pertinent question
      • Regulatory sector at the backseat? It is not too early to ask if the RBI’s responsibility to regulate the financial sector may have taken a back seat after the adoption of inflation targeting as the main objective.
      • Has a fixation with inflation rate made the RBI take its eyes off the loan books of the banks?

    The recent rise in inflation and shortfall of currency notes

    • Inflation at 7%: At over 7%, the inflation rate in December is the highest in five years.
      • Not cause of concern: This may not be the reason to panic, for the price rise could be seasonal and may well abate.
      • Question on inflation targeting: But it does raise a question on the efficacy of inflation targeting as a means of inflation control.
      • Reason for moderate inflation so far: If the inflation rate was within the intended range so far, that may have been due to both declining food prices and, for a phase, oil prices.
    • The shortfall of notes: The central bank has a monopoly on the issue of notes.
      • There is an absolute shortage of small denomination notes in the bazaars of India.
      • Small-denomination notes are mostly unavailable.

    Conclusion

    While focusing on the inflation, the Central bank also needs to keep the other mandates especially the regulation of the finance sector in check.

     

     

  • Punjab’s new Right to Business Bill

    The Punjab Cabinet this week gave its approval to a Punjab Right to Business Bill, 2020, a law aimed at ensuring ease of doing business for the Micro, Small and Medium Enterprises (MSME) sector.

    Punjab Right to Business Bill, 2020

    • Under the law, an MSME unit can be set up after ‘In-Principle’ approval from the District Bureau of Enterprise, headed by the Deputy Commissioner, working under the guidance of the State Nodal Agency, headed by the Director, Industries.
    • Approval for units in approved Industrial Parks will be given in three working days.
    • For new enterprises outside approved Industrial Parks, the decision on the Certificate shall be taken by the District Level Nodal Agency within 15 working days, as per the recommendations of the Scrutiny Committee.

    What is the timeframe for unit owners to comply?

    • Unit owners will have three and a half years after setting up the unit to obtain seven approvals from three departments: the sanction of building plans; issuance of completion/occupation certificate for buildings; registration of new trade licences.
    • The industries involving hazardous processes will have to obtain a Fire NOC and get approval for the factory building plan before setting up the unit.
    • All units will have to get environmental clearance from the Pollution Control Board beforehand.

    Why was a law needed, rather than an executive order?

    • According to the government, the Act will have overriding powers over various Acts of different departments that make approvals necessary before the setting up of small and medium units.
    • This purpose could not have been achieved by an executive order.
    • How the law actually works on the ground remains to be seen, however.

  • GSAT-30 successfully launched

    India’s first satellite of 2020, the GSAT-30 was successfully launched. The launch vehicle Ariane 5 VA-251 lifted off from Kourou Launch Base, French Guiana.

    GSAT-30 

    • GSAT-30 derives  its  heritage  from ISRO’s  earlier INSAT/GSAT  satellite  series  and  will  replace  INSAT-4A  in 
    • In the  days  ahead,  orbit-raising  manoeuvres  will  be  performed  to  place  the satellite  in  Geostationary  Orbit  (36,000  km  above  the  equator)  by  using  its  onboard  propulsion
    • During the  final  stages  of  its  orbit  raising  operations,  the  two  solar  arrays  and  the antenna  reflectors  of  GSAT-30  will  be
    • Following this,  the satellite will be  put in  its final orbital .     The satellite will  be  operational  after  the successful  completion  of  all in-orbit  tests.

    Utility of the satellite

    • GSAT-30 will provide  DTH  Television  Services, connectivity to  VSATs for  ATM,  Stock-exchange,  Television unlinking and Teleport  Services,  Digital  Satellite  News  Gathering  (DSNG)  and e-governance applications.
    • The satellite  will  also  be  used  for  bulk  data  transfer  for  a  host  of an emerging  telecommunication

  • [pib] Assam Inland Water Transport Project

    India and the World Bank signed a loan agreement of $88 million for Assam Inland Water Transport Project.

    Assam Inland Water Transport Project

    • A majority of Assam’s more than 361 ferry routes cross the Brahmaputra or serve its islands, providing a crucial means of transport to thousands of commuters in both the urban and rural areas of the Brahmaputra Valley.
    • The project will draw guidance from ‘working with nature’ principles that aim to design new infrastructure or rehabilitate existing infrastructure in a way that works with natural river processes.
    • The terminals will have better access, lighting and signage while the new vessels will allow for individual seats, and separate toilets. Moreover, a strengthened regulatory regime will ensure reduction in overloading, adherence to time schedule and better crew standards.
    • The Project will help Assam improve the passenger ferry infrastructure and its services and strengthen the capacity of the institutions running the inland water transport.

    Significance

    • Inland Water Transport is also a more sustainable mode of transport. And Assam has the largest network of navigable waterways in India.
    • It provides low-carbon and low-cost options when compared to the cost of constructing and maintaining flood-resilient roads and bridges across the long stretches of the Brahmaputra river.
    • Technically better-designed terminals and energy-efficient vessels (both new and retrofitted) will make the ferry services more sustainable with least disruption to nature.

  • [op-ed snap] Power replay

    Context

    Five years after the launch of UDAY, power-sector once again seems to be going deep into the troubles.

    Where the Discoms stand now?

    • Losses increased: The losses of state-owned distribution companies (discoms) risen.
    • Dues increased: Discom’s dues for power purchases have also surged.
      • Dues owed by discoms to power producers, both independent and state-run entities, stood at Rs 80,930 crore.
      • Of these, Rs 71,673 crore extends beyond the allowed grace period of 60 days.
      • Rajasthan leads the states with the most dues, followed by Tamil Nadu and Uttar Pradesh.

    Components of UDAY and progress made

    • The UDAY scheme, which involved state governments taking over the debt of discoms, had three critical components
    • First-Reduction in AT&C losses: While progress has been made on some of these fronts, it hasn’t been in line with the targets laid out under UDAY.
      • AT&C (Aggregate Technical and Commercial) losses have declined in some states, but not to the extent envisaged.
      • Under UDAY, discoms were to bring down AT&C losses to 15 per cent by FY19.
    • Second- Timely revision of tariffs: While some states have raised power tariffs, the hikes have not been sufficient.
      • In tariff revision decisions political considerations prevailed over commercial decisions.
    • Third- elimination of the gap between per unit of cost and revenue realised: The gap between the average cost per unit of power and the revenue realised has not declined in the manner envisaged.
      • Because of this discoms were forced to reduce their power purchases and delay payments to power producers.

    Way forward:

    • The new plan, being formulated by the government reportedly, aims to address these issues by-
      • Reducing electricity losses.
      • Eliminating the tariff gap.
      • Smart metering.
      • Privatising discoms.
      • Having distribution franchisees.
    • Altering incentive structure: Along with the above, the Centre should also look at altering the incentive structures of states in order to ensure compliance.
    • Provision of penalties: Stiff penalties need to be imposed for not meeting the targets laid out in the new scheme.