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  • What is Infrastructure Investment Trusts (InvITs)?

    The National Highways Authority of India (NHAI) has come up with its Infrastructure Investment Trust (InvIT) issue.

    Try this PYQ:

    Q.Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?

    (a) Certificate of Deposit

    (b) Commercial Paper

    (c) Promissory Note

    (d) Participatory Note

    Significance of the issue

    • The issue will enable NHAI to monetize its completed National Highways that have a toll collection track record of at least one year.
    • The NHAI reserves the right to levy a toll on identified highways and it will help the company raise funds for more road development across the country.

    What are InvITs?

    • Infrastructure investment trusts are institutions similar to mutual funds, which pool investment from various categories of investors and invest them into completed and revenue-generating infrastructure projects, thereby creating returns for the investor.
    • Structured like mutual funds, they have a trustee, sponsor(s), investment manager and project manager.
    • While the trustee (certified by Sebi) has the responsibility of inspecting the performance of an InvIT, sponsor(s) are promoters of the company that set up the InvIT.
    • In the case of Public-private partnership (PPP) projects, it refers to the infrastructure developer or a special purpose vehicle holding the concession.
    • While the investment manager is entrusted with the task of supervising the assets and investments of the InvIT, the project manager is responsible for the execution of the project.

    How will it work for NHAI?

    • NHAI’s InvIT will be a Trust established by NHAI under the Indian Trust Act, 1882 and SEBI regulations.
    • The InvIT Trust will be formed the objective of investing primarily in infrastructure projects.
    • The fund raised can be invested in the project SPVs by way of an issue of debt.
    • The trust can utilise it to repay their loans or even for prepayment of certain unsecured loans and advances.

    Why does NHAI need fund?

    • At a time when private sector investment in the economy has declined, fund-raising by NHAI and spending on infrastructure will not only provide a fillip to the economy but will also crowd-in private sector investment.
    • So NHAI’s InvIT offer is a way for the government to tap alternative sources of financing to boost public spending in the roads and infrastructure sector.
    • It is important to note that in October 2017, the Centre had launched Bharatmala Pariyojana, its flagship highway development programme, for development of 24,800 km of roads.
    • In order to complete the projects, NHAI needs adequate funds and one of the options is to monetize the completed and operational NH assets.

    How does it benefit the investor?

    • Retail or even large financial investors may not be typically able to invest in infrastructure projects such as roads, power, energy etc.
    • InvITs enable these investors to buy a small portion of the units being sold by the fund depending upon their risk appetite.
    • Given that such trusts comprise largely of completed and operational projects with positive cash flow, the risks are somewhat contained.
    • The investors can benefit from the cash flow that gets distributed as well as in capital appreciation of the units.
    • Unitholders also benefit from favourable tax norms, including exemption on dividend income and no capital gains tax if units are held for more than three years.

  • [pib] ABHYAS Air Vehicle

    Successful flight test of ABHYAS – High-speed Expendable Aerial Target (HEAT) was today conducted by Defence Research and Development Organisation (DRDO) from the Interim Test Range, Balasore in Odisha.

    Try this PYQ:

    What is “Terminal High Altitude Area Defense (THAAD)”, sometimes seen in the news?

    (a) An Israeli radar system

    (b) India’s indigenous anti-missile programme

    (c) An American anti-missile system

    (d) A defence collaboration between Japan and South Korea

    ABHYAS Air Vehicle

    • ABHYAS is designed & developed by Aeronautical Development Establishment (ADE), DRDO.
    • The air vehicle is launched using twin underslung booster.
    • It is powered by a small gas turbine engine and has a MEMS-based Inertial Navigation System (INS) for navigation along with the Flight Control Computer (FCC) for guidance and control.
    • The vehicle is programmed for fully autonomous flight. The check out of air vehicle is done using laptop-based Ground Control Station (GCS).
    • During the test campaign, the user requirement of 5 km flying altitude, vehicle speed of 0.5 mach, the endurance of 30 minutes and 2g turn capability of the test vehicle were successfully achieved.

    Its uses

    • Abhyas’s radar cross-section (RCS), as well as its visual and infrared signatures, can be augmented to simulate a variety of aircraft for air-defence weapon practices.
    • It can also function as a jammer platform and decoy.
    • The HEAT system is utilized to do away with the post-launch recovery mode, which is time-consuming and difficult in a scenario as the sea.

  • [pib] Maulana Azad National Fellowship (MANF) Scheme

    The Ministry of Minority Affairs has provided information about the progress of MANF Scheme in the Parliament.

    Note: As the name suggests, the scheme particularly aims to target the Minority community. Here, six major groups are considered a minority. Statement based questions often create bluffs on such conditions.

    MANF Scheme

    • The Ministry of Minority Affairs implements MANF Scheme for educational empowerment of students belonging to six notified minority communities i.e. Buddhist, Christian, Jain, Muslim, Sikh, Zoroastrian (Parsi).
    • The Scheme is implemented through the University Grants Commission (UGC) and no waiting list is prepared under the Scheme by UGC.
    • Candidates belonging to the Six centrally notified minority are considered for award of fellowship under the MANF Scheme.
    • The selection of candidates is done through JRF-NET (Junior Research Fellow- National Eligibility Test) examination conducted by the National Testing Agency.
    • Prior to 2019-20, the merit list was prepared on the basis of marks obtained by the candidates in their Post Graduate examination.
    • However, in 2018-19, only the candidates who had qualified CBSE-UGC-NET/JRF or CSIR-NET/JRF were eligible to apply.

  • [pib] YuWaah Platform

    Ministry of Youth Affairs & Sports and United Nations Children Fund (UNICEF) are set to establish YuWaah, Generation Unlimited (GenU), a global multi-stakeholder platform in India.

     YuWaah Platform

    As per the Statement of Intent, the objectives of this project are:

    • Support young people by providing entrepreneurship classes (online and offline) with successful entrepreneurs and experts, towards establishing an entrepreneurial mindset among young people.
    • Upskilling of young people on 21st-century skills, life skills, digital skills through online and offline channels and support them through self-learning, for their productive lives and the future of work.
    • Create linkages with aspirational economic opportunities to connect young people with employment opportunities, including building pathways to connect them with jobs or self-employment.
    • Providing career guidance support to young people through career portal as well as through job-readiness and self-exploration sessions to make young people career-ready.

  • Difficulties faced by India and Russia in following convergent policies

    The article analyses the challenges in the India-Russia relations against the background of changing global order.

    Context

    • India decided to pull out of Russia’s Kavkaz 2020 military exercises, where it was scheduled to participate alongside other Shanghai Cooperation Organisation (SCO) member states.

    Russia’s role in India-China dispute

    • The ongoing conflict between two prominent members, and both close partners of Russia, has given rise to concerns about its impact on India-Russia ties.
    • Moscow has been playing a quiet diplomatic role during the recent border clashes without actively taking sides.
    • Recent visits by India’s Defence Minister to Russia saw detailed discussions around furthering the India-Russia defence relationship alongside the promise to accelerate certain supplies based on New Delhi’s requirements.
    • The September visit coincided with the biannual Indo-Russian naval exercises, INDRA.

    India-Russia relations

    • India and Russia have spent the past few years strengthening their partnership, particularly since the 2018 Sochi informal summit.
    • From substantive defence engagement to regional questions in Central Asia, Afghanistan and West Asia, a conversation with Moscow remains an important element of Indian foreign policy.
    • India and Russia are pragmatic players looking at maximising their strategic manoeuvrability,
    • Both recognise the value of having a diversified portfolio of ties. .
    • India on its part has sought to include Russia in its vision of the Indo-Pacific that does not see the region as ‘a strategy or as a club of limited members’.
    • Reports indicate that a proposal for a India-Russia-Japan trilateral is being explored.

    Multilateral forums and Challenges in India-Russia relation

    • The multilateral forums are important as they foster continued India-Russia cooperation at the bilateral and multilateral levels.
    •  Increasingly divergent foreign policies of its members pose challenges of agenda-setting and overall scope.
    • At this moment of flux, countries such as India and Russia are keeping all their options open.
    • We live in a ‘curious world’ where one cannot view engagement with different parties as a ‘zero-sum game’.
    • Worsening India-China ties or a burgeoning China-Russia relationship does not automatically mean a breakdown of the India-Russia strategic partnership.
    •  It is the combination of a changing regional order, closer Russia-China ties and India’s alignment with the United States and other like-minded countries to manage Beijing’s rise that has the potential to create hurdles for India-Russia cooperation in the Asia.

    Consider the question “Despite difficulties in pursuing convergent policies, India-China relations retains its relevance. Comment.”

    Conclusion

    Although the evolving global order makes it difficult for India and Russia to pursue fully convergent policies, it does not preclude the bilateral relationship from retaining its relevance.

  • 22nd Sep 2020 | Prelims Daily with Previous Year Questions

    [WpProQuiz 526]

    [WpProQuiz_toplist 525]

  • Parliament is not just about technicalities, deference to process builds trust

    The article deals with the issue of importance of parliamentary procedures and how it has been neglected in the passage of several Bills recently.

    2 contexts that explain the crisis Parliament faces

    1) Neglecting the procedure

    • Three simple procedural matters are the cornerstone of parliamentary practice.
    • The first is Question Hour, which was suspended.
    • Even in taking that decision, the Speaker did not accede to the demand for a division.
    • The second is referring bills to committees.
    • It is increasingly the case with important pieces of legislation that they are not being either referred to committees, nor are they being fully debated in Parliament.
    • The third and most important is “division.”
    • If a member of a House asks for a division of votes, the Speaker needs to grant it.
    • The Speaker can refuse under some circumstances, but even then he has to take something like an informal headcount vote before refusing division.

    2) Substantive context

    • There are three bills relating to agriculture that have occasioned serious protests.
    • There are three far-reaching pieces of legislation pertaining to labour reform.
    • Each of these bills can be improved and crafted in ways that make them more the object of consensus.
    • The bills pertaining to agriculture were debated, ffter the debate,  deputy chairperson refusesed a division.
    • By allowing a division we would at least record where each member of Parliament stood on a question of monumental importance.

    Concerns

    • We seem to not want to give flexibility to states when it comes to farmers.
    • Flexibility is given to states, in the most unrestrained manner possible, when it comes to the interest of capital against labour.
    • It seems that the hurried interests of corporate India take precedence over farmers and labour, rather than a well negotiated social contract between all three.

    Why the farmers are concerned

    • A lot of the farmers’ legitimate fear is that in a fiscal crunch, MSP will be rolled back or procurement curtailed.
    • There is genuine uncertainty over what private procurement will mean.

    Way forward

    • It is also possible that in the case of the APMC, a more creative solution could have been found for concerns of the states, like an opt-out clause for them.
    • In case of amendments to labour laws, there is need to examine whether it fulfils the twin objectives of both protecting workers and being compliance-friendly at the same time.

    Conclusion

    Some deference to process can build trust because it is a sign of a government that listens. At least on the APMC this was a possibility. Let us hope on labour bills there is more reasoned deliberation. Parliamentary practice will not be able to knit an enduring social contract between labour, capital and farmers if it does not inspire confidence.

  • Ethics group on Civilsdaily’s Habitat | Link and instructions inside

    Enroll here for Ethics Masterclass 2021

    Join our Habitat now for Ethics discussion by Sukanya Ma’am at 7:30 pm. Know the best answer writing structure and technique for both section-A and case studies, develop examples/understanding from current, professional/social life, your areas of interest etc.

    If you are already on Habitat, you don’t need to register again. Discussion by Sukanya Ma’am will take place in Ethics group at 7:30 pm. Others follow these steps:

    INSTRUCTIONS:

    1. Click on the link provided above.
    2. Choose Web Application. (Mandatory)
    3. Enter your details. Click on ‘Register a new account’.
    4. Choose a username.
    5. That is it. Welcome to Habitat.

    For access through Mobile app:

    1. Install the Mobile application (click here) from your App store.
    2. Click on Join a Workspace.
    3. Enter this in the Workspace URL – habitat.civilsdaily.com
    4. Use the same email id and password as you used above.

    Should you encounter any issue in this process or you have a query, reach out to us at +91 89299 87787 or hello@civilsdaily.com

  • Last Minute Expected questions – UPSC CSE Prelims 2020 by Zeeshan sir at 8 pm| Join Habitat session. (Links inside)

    Register here for Nikaalo Prelims 2020 – FLTs

    Gear up yourselves for the penultimate session(today and tomorrow) on Expected questions for the UPSC CSE Prelims 2020 exam by Zeeshan Sir. You don’t want to miss out on these most important questions.

    Instructions for joining Habitat at the bottom.

    Join Civilsdaily’s Habitat (Click here)

    If you are already on Habitat, you don’t need to register again. Discussion by Zeeshan sir will take place in General group at 8.00 pm. Others follow these steps:

    1. Click on the link provided above.
    2. Choose Web Application. (Mandatory)
    3. Enter your details. Click on ‘Register a new account’.
    4. Choose a username.
    5. That is it. Welcome to Habitat.

    For access through Mobile app:

    1. Install the Mobile application (click here) from your Appstore.
    2. Click on Join a Workspace.
    3. Enter this in the Workspace URL – habitat.civilsdaily.com
    4. Use the same email id and password as you used above.

    Should you encounter any issue in this process or you have a query, reach out to us at +91 89299 87787 or hello@civilsdaily.com

  • Explained: Suspension of Members of Parliament

    Recently eight Rajya Sabha MPs were suspended for unruly behaviour in the House.

    Try this PYQ:

    Q.Consider the following statements:

    1. Speaker of the legislative assembly shall vacate his/her office of he/she ceases to be a member of the assembly
    2. Whenever the legislative assembly is dissolved the speaker shall vacate his/her office immediately

    Which of the statements given above is/are correct? (CSP 2018)

    a) 1 only

    b) 2 only

    c) Both 1 and 2

    d) Neither 1 not 2

    What is the reason for suspending an MP?

    • The general principle is that it is the role and duty of the Presiding Officer — Speaker of Lok Sabha and Chairman of Rajya Sabha — to maintain order so that the House can function smoothly.
    • In order to ensure that proceedings are conducted in the proper manner, the Speaker/Chairman is empowered to force a Member to withdraw from the House.

    What are the rules under which the Presiding Officer acts?

    • Rule Number 373 of the Rules of Procedure and Conduct of Business provides for the suspension of MPs by the Speaker of the House.
    • To deal with more recalcitrant Members, the Speaker make take recourse to Rules 374 and 374A.
    • Rule 374 says: The Speaker may, if deems it necessary, name a Member who disregards the authority of the Chair or abuses the rules of the House by persistently and wilfully obstructing the business thereof.
    • Rule 374A was incorporated in the Rule Book on December 5, 2001. The intention was to skirt around the necessity of moving and adopting a motion for suspension.

    Procedure in Rajya Sabha

    It’s largely similar, with one important difference.

    • Like the Speaker in Lok Sabha, the Chairman of Rajya Sabha is empowered under Rule Number 255 of its Rule Book to “direct any Member whose conduct is in his opinion grossly disorderly to withdraw immediately” from the House.
    • Unlike the Speaker, however, the Rajya Sabha Chairman does not have the power to suspend a Member. The House may, by another motion, terminate the suspension.
    • The Chairman may “name a Member who disregards the authority of the Chair or abuses the rules of the Council by persistently and wilfully obstructing” business.
    • In such a situation, the House may adopt a motion suspending the Member from the service of the House for a period not exceeding the remainder of the session.

    Is suspending an MP a decent practice?

    • It is a strong action, but it is not uncommon. In general, a balance has to be struck.
    • There can be no question that the enforcement of the supreme authority of the Presiding Officer is essential for smooth conduct of proceedings.
    • However, it must be remembered that the job of the Presiding Officer is to run the House, not to lord over it.

    Alternatives to suspension

    • The solution to unruly behaviour has to be long-term and consistent with democratic values.
    • A previous Speaker had ordered that television cameras be focussed on the demonstrating members so that people could see for themselves how their representatives were behaving in the House.

    Present situation

    • In the present case, however, the Opposition has accused the Chairman of stopping the telecast of the proceedings in Rajya Sabha.
    • What cannot be denied is that Speaker’s/Chairman’s actions are often dictated more by expediency and the stand of the party that they belong to, rather than by the Rules and principles.
    • So, the ruling party of the day invariably insists on the maintenance of discipline, just as the Opposition insists on its right to protest. And their positions change when their roles flip.

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