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  • New approach to economic revival: SNAP

    In this article the author suggests a new approach to deal with multiple bankruptcies and stressed assets that would come up post COVID. So, what is the new approach and how it is different from the existing IBC? Read further.

    Why is speed of resolution important?

    • First, because it is the only way to revive the economy.
    • As revenues have dried up cash flow problems have cascaded down the supply chain.
    • Firms will consequently be unable to restart production unless they first get credit to pay their suppliers and workers.
    • But impaired firms cannot get credit and impaired banks cannot provide it.
    • So, the entire economy will be stuck unless the balance sheet problem is sorted out.
    • Second, speed will also minimise the losses from the COVID crisis.
    • The value of bankrupt firms decays rapidly over time, and the bill for this loss will have to be borne ultimately by the government.
    • So, speed is necessary to contain the damage to the government’s financial position, which has been badly eroded by the COVID crisis.
    • But moving quickly will be difficult.
    • The only real mechanism that currently exists to handle stress and bankruptcy is the Insolvency and Bankruptcy Code (IBC) system, which has been suspended for six months.

    Why the IBC cannot help much?

    • Many have therefore argued for bringing the IBC back into operation as soon as possible.
    • Why such a strategy would not be very effective? The system is slow, with many cases taking two years or more; it could easily become overwhelmed completely if it is forced to absorb a large new set of bankrupt firms.
    • In addition, the IBC envisages that banks maximise their recoveries by auctioning off the bankrupt firms to the highest bidder.
    • But in a nation and indeed a world, where all balance sheets are damaged, it is not obvious who would be able to buy these firms, or at what prices.
    • So recovery rates from sales could be low, undermining the objective of the exercise.
    • Even if strong bidders could be found, there is a fundamental political, even philosophical, question of whether it is really right to take these firms away from their promoters.
    • After all, many of these firms did nothing wrong; they got into financial difficulties because of the corona crisis.

    So, what is the solution?

    • What is needed is a new set of procedures that can utilise much of the existing IBC framework, but are simple, straightforward, and prompt, with a built-in expiry clause.
    • Let’s Call them Special Non-Adversarial Procedures (SNAP).
    • As soon as the lockdown is largely over, the IBC creditor committees (CoCs) could meet to assess the new wave of NPAs.
    • The largest, most complex cases — say, those with debts exceeding Rs 10,000 crore — would be sent to the IBC for regular treatment.
    • But all other cases would be eligible under SNAP
    • After all, the wider the set of companies that are put back on their feet quickly, the stronger the recovery will be.

    How would the SNAP work?

    • Under SNAP, CoCs would, over the next three months, examine delinquent firms’ financial records, checking to see whether they are actually viable.
    • If so, these firms would be designated as Lockdown Affected Enterprises (LAEs), eligible under SNAP.
    • Since the basis of the designation would be that the firm is fundamentally sound but because of COVID impact, an Insolvency Professional (IP) appointed by the CoC would work with existing management (who would continue to run the firm) to arrange for interim finance.
    • Then, the IP would assess how much of a debt reduction the firm needs, and within three months would present a specific proposal to the CoC.
    • If the CoC can reach a two-third majority in favour of the proposal, the promoter would keep the firm, while the firm would be granted immediately released from bankruptcy.
    • Since the National Company Law Tribunal (NCLT) is already overloaded, it would not be involved at all in SNAP.
    • If the CoC cannot reach agreement within the three-month deadline, or if at any subsequent point the firm defaults on its newly reduced debt, it would be sent to the IBC for resolution.
    • SNAP would be disbanded by end-December 2020.

    Checks and balances under SNAP

    • Such a system would have a series of checks and balances, to prevent firms from securing undeserved debt reductions.
    • Banks would need to certify that defaulters are truly LAEs.
    • IPs would need to certify the size of the debt reduction.
    • A large majority of creditor banks would need to agree to the IP’s proposal.

    What should be the role of the government in SNAP?

    • With these checks and balances in place, the government should then commit to two things.
    • First, it should provide some legal cover, ensuring that bankers would not be subject to investigations by the anti-corruption agencies, as long as they followed the LAE rules.
    • Second, the public sector banks would be compensated for the costs of the reduction in the value of the asset, automatically and fully.

    Major advantage of SNAP

    • Besides speed, SNAP would have one further major advantage.
    • It would reduce the adversarial nature of the IBC process, arising because promoters are forced to cede their firms.
    • Under the proposed system, promoters would not only have incentives to cooperate; they would actually want to take the initiative, applying for LAE designation themselves, in the hopes that they could get back to business as soon as possible.
    • Such a system might seem difficult to envisage, but it is certainly feasible: It is a design feature under Chapter 11 of the American bankruptcy act.
    • If SNAP succeeds, some of the special procedures could be introduced permanently into the IBC framework, adding a new dimension: Not just liquidation and rehabilitation under new promoters but rehabilitation under existing management.

    Way forward

    • After SNAP, repair of the financial system would have to go back to addressing the long-standing problems, which will have been aggravated by the crisis.
    • Firms that were unviable even before the COVID crisis would be sent directly to the IBC, but with the IBC reformed.
    • The government should issue guidelines focusing on the following three-
    • 1. Focusing the COCs on the goal of maximising value, disregarding non-commercial objectives.
    • 2. Directing the NCLT courts to focus on the CoCs’ adherence to the procedure rather than on the merits of their decisions.
    • 3. Increasing competition in the auction by allowing promoters to bid for their assets, as long as they have not been declared wilful defaulters.
    • For the power and real estate sectors, a sui generis approach via the creation of a bad bank is still the best way forward.
    • Real estate resolutions need to take into account the interests of home-owners, something that is almost impossible to do under the IBC.

    Consider the question, “Economic revival after the pandemic would require some tweaks in the IBC as it was not designed to handle such situations. Suggest the ways to handle the bankruptcies more effectively and changes that are desired in the IBC.”

    Conclusion

    Introducing three-pronged strategy quickly would set the stage for the economic recovery of India:  1) Special, expedited, non-adversarial and time-bound bankruptcy procedures (SNAP) for COVID-affected firms 2) A reformed IBC focused squarely on loss-minimisation 3)Bad banks for stressed assets in the power and real estate sectors.


    Back2Baciscs: What is Insolvency and Bankruptcy Code-2016?

    1. The Code creates time-bound processes for insolvency resolution of companies and individuals.  These processes will be completed within 180 days.  If insolvency cannot be resolved, the assets of the borrowers may be sold to repay creditors.
    2. The resolution processes will be conducted by licensed insolvency professionals (IPs).  These IPs will be members of insolvency professional agencies (IPAs).  IPAs will also furnish performance bonds equal to the assets of a company under insolvency resolution.
    3. Information utilities (IUs) will be established to collect, collate and disseminate financial information to facilitate insolvency resolution.
    4. The National Company Law Tribunal (NCLT) will adjudicate insolvency resolution for companies.  The Debt Recovery Tribunal (DRT) will adjudicate insolvency resolution for individuals.
    5. The Insolvency and Bankruptcy Board of India will be set up to regulate functioning of IPs, IPAs and IUs.
  • Explained: How can Inter-State workers be protected?

    Context

    • Following the novel coronavirus pandemic, the nationwide lockdown announced on March 24 at short notice has caused immense distress to migrant workers around the country.
    • Hundreds have been seen trying to walk home to Uttar Pradesh, Bihar, West Bengal and Odisha from their places of work in Rajasthan, Delhi, Maharashtra, Gujarat and so forth.

    Try a mains question on this issue:

    Inter state migrants face social, economic and cultural shocks. Discuss some steps taken by center and state governments. Also suggest further reforms.

    Inter-State workers: Where is their almighty?

    • Recently, 16 migrant labourers who were trying to return to Madhya Pradesh, their home State, on foot were killed when a goods train ran over them.
    • Questions are being raised about their welfare and the lack of legal protection for their rights.
    • Those working in the field of labour welfare have recalled a 1979 law to regulate the employment and working conditions of inter-State migrants.
    • The lack of serious implementation has led to their rights being ignored.

    What about occupational safety?

    • As part of the present regime’s efforts towards consolidating and reforming labour law, a Bill has been introduced in Parliament called the Occupational Safety, Health and Working Conditions Code, 2019.
    • The proposed code seeks to merge 13 labour laws into a single piece of legislation.
    • The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, is one of them.
    • Activists fear that specific safeguards given to migrant workers may be lost as a result of this consolidation.

    Inter-State Migrant Workmen Act, 1979: What does the law envisage?

    • The Act seeks to regulate the employment of inter-State migrants and their conditions of service.
    • It is applicable to every establishment that employs five or more migrant workmen from other States; or if it had employed five or more such workmen on any day in the preceding 12 months.
    • It is also applicable to contractors who employed a similar number of inter-State workmen.
    • The Act would apply regardless of whether the five or more workmen were in addition to others employed in the establishment or by the contractors.
    • It envisages a system of registration of such establishments. The principal employer is prohibited from employing inter-State workmen without a certificate of registration from the relevant authority.
    • The law also lays down that every contractor who recruits workmen from one State for deployment in another State should obtain a licence to do so.

    What are the beneficial provisions for inter-State migrants in it?

    • The provision for registration of establishments employing inter-State workers creates a system of accountability and acts as the first layer of formalizing the utilization of their labour.
    • It helps the government keep track of the number of workers employed and provides a legal basis for regulating their conditions of service.
    • As part of the licensing process, contractors are bound by certain conditions.
    • These include committing them to provide terms and conditions of the agreement or any other arrangement on the basis of which they recruit workers.
    • In no case, shall the wages be lower than what is prescribed under the Minimum Wages Act.

    What does the proposed Code say on migrant workers?

    • The attempt to consolidate laws relating to occupational safety, health and working conditions means that many separate laws concerning various kinds of workers and labourers will have to be repealed.
    • The proposed law seeks to repeal 13 Acts such as the Factories Act, Mines Act, Dock Workers’ Act, the Inter-State Migrant Workmen Act, and other enactments relating to those working in plantations, construction, cinema, beedi and cigarette manufacture, motor transport, and the media.

    What does the news law promise for migrant workers?

    • Regarding inter-State migrant workers, the Act includes them in the definition of ‘contract labour’.
    • At the same time, an inter-State migrant worker is also separately defined as a person recruited either by an employer or a contractor for an establishment situated in another State.
    • The Code has a chapter on ‘contract labour and inter-State migrant workers’, but the Parliamentary Standing Committee has recommended that the provisions relating to migrant workers be covered in a separate chapter.
    • The Code contains provisions similar to the 1979 Act regarding registration of establishments, licensing of contractors and the inclusion of terms and conditions on hours of work, wages and amenities.
    • Further, both the old Act and the proposed Code envisage the payment of a displacement allowance and a journey allowance to inter-State migrant workers.

    Trade Union’s response

    • Even though the Code seeks to preserve many of the protections and rights are given to inter-State workers, trade unions feel that it is always better to have a separate enactment.
    • The unprecedented distress and misery faced by migrant workers due to the current lockdown have drawn attention to beneficial legislation dedicated to their welfare.
    • The Centre of Indian Trade Unions (CITU) has highlighted the fact that both the States where they work and home States have obligations cast upon them in the existing law.
    • Despite the fact that it has been poorly implemented at all, labour unions feel that preserving the separate enactment and enforcing it well is a better option than subsuming it under a larger code.
  • Relaxation in labour laws due to COVID-19 outbreak and their impacts

    • Amid the coronavirus-induced lockdown, an increasing number of states that include Uttar Pradesh, Madhya Pradesh, Rajasthan and Gujarat have pushed through changes to their labour laws by way of amendments — ordinances or executive orders.
    • They aim to provide some sort of blanket exemption to employers from labour laws.

    Practice Question

    Q. Multiplicity of Labour laws in India has done little to address the plight of Labourers. Critically comment in context to the nationwide lockdown imposed due to the coronavirus outbreak.

    What is the move all about?

    • Most states cleared an ordinance exempting businesses from the purview of most labour law provisions for the next three years.
    • However, labour laws related to bonded labour, deployment of women and children and timely payment of salaries are not changed.

    Changes in the law

    • The changes in the labour laws will apply to both the existing businesses and the new factories being set up in the state.
    • Similarly, the Madhya Pradesh government has also suspended many labour laws for the next 1000 days.
    • Few important amendments are:
    • Employers can increase working hours in factories from 8 to 12 hours and are also allowed up to 72 hours a week in overtime, subject to the will of employees.
    • The factory registration now will be done in a day, instead of 30 days. And the licence should be renewed after 10 years, instead of a year. There is also the provision of penalty on officials not complying with the deadline.
    • Industrial Units will be exempted from majority of the provisions of the Industrial Disputes Act, 1947.
      • Organisations will be able to keep workers in service at their convenience.
      • The Labour Department or the labour court will not interfere in the action taken by industries.
      • Contractors employing less than 50 workers will be able to work without registration under the Contract Labour (Regulation and Abolition) Act, 1970.

     Major relaxations to new industrial units are:

      • Exempted from provisions on ‘right of workers’, which includes obtaining details of their health and safety at work, to get a better work environment which include drinking water, ventilation, crèches, weekly holidays and interval of rest, etc.
      • Exempted from the requirement of keeping registers and inspections and can change shifts at their convenience.
      • Employers are exempt from penalties in case of violation of labour laws.

    Rationale Behind the Changes in Labour Laws

    • States have begun easing labour laws to attract investment and encourage industrial activity.
    • To protect the existing employment, and to provide employment to workers who have migrated back to their respective states.
    • Bring about transparency in the administrative procedures and convert the challenges of a distressed economy into opportunities.
    • To increase the revenue of states which have fallen due to closure of industrial units during Covid-19 lockdown.
    • Labour reform has been a demand of Industries for a long time. The changes became necessary as investors were stuck in a web of laws and red-tapism.
    • Businesses and economic activities have slowed down due to which labour welfare has also been affected due to the national lockdown.

    What are the Indian Labour Laws?

    • Labour falls in the Concurrent List and there are many laws enacted by the Centre that a state cannot just brush aside.
    • Estimates vary but there are over 200 state laws and close to 50 central laws. And yet there is no set definition of “labour laws” in the country.

    Their types

    Broadly speaking, they can be divided into four categories. Refer to the image.

    • The main objectives of the Factories Act, for instance, are to ensure safety measures on factory premises and promote the health and welfare of workers.
    • The Shops and Commercial Establishments Act, on the other hand, aims to regulate hours of work, payment, overtime, a weekly day off with pay, other holidays with pay, annual leave, employment of children and young persons, and employment of women.
    • The Minimum Wages Act covers more workers than any other labour legislation.
    • The most contentious labour law, however, is the Industrial Disputes Act, 1947 as it relates to terms of service such as layoff, retrenchment, and closure of industrial enterprises and strikes and lockouts.

    Why are labour laws often criticised?

    • Indian labour laws are often characterized as “inflexible”. Most of them are inadequate to make the sector formalized.
    • At present 90% of India’s workers are parts of the informal economy. The Chart shows, even the organised sector are increasingly employing workers without formal contracts.
    • Others have also pointed out that there are too many laws, often unnecessarily complicated, and not effectively implemented. This has laid the foundation for corruption and rent-seeking.

    Issues with the recent relaxation

    1.Exploitation

    • The state of UP has summarily suspended almost all labour laws including the Minimum Wages Act.
    • Hence this move is characterized as “creating an enabling environment for exploitation”.
    • That’s because far from being a reform, which essentially means an improvement from the status quo, the removal of all labour laws will not only strip the labour of its basic rights but also drive down wages.
    • For instance, what stops a firm from firing all existing employees and hiring them again at lower wages.
    • For one, as Chart 3 shows, even before the Covid-19 crisis, thanks to the deceleration in the economy, wage growth had been moderating.
    • Moreover, there was always a wide gap between formal and informal wage rates. For example, a woman working as a casual labourer in rural India earns just 20% of what a man earns in an urban formal setting.
    • If all labour laws are removed, most employment will effectively turn informal and bring down the wage rate sharply. And there is no way for any worker to even seek grievance redressal.

    2.Informalization

    • Moreover, far from pushing for a greater formalization of the workforce, this move will in one go turn the existing formal workers into informal workers as they would not get any social security.

    3. Will reduce demand in the economy

    • Scrapping labour laws to save on labour costs will not help start the economy but will do exactly the opposite.
    • It will reduce wages, lower earnings (particularly of low wage workers) and reduce consumer demand.

    4.Unlikely to spur economic growth?

    • Theoretically, it is possible to generate more employment in a market with fewer labour regulations.
    • However, as the experience of states that have relaxed labour laws in the past suggests, dismantling worker protection laws have failed to attract investments and increase employment.
    • It is unproven if they can cause an increase in worker exploitation or deterioration of working conditions. However, in the long run, employment will not increase, because of several reasons.

    5. Enacted without any scrutiny:

    • Usually, any change in an Act follows a rigorous process of public consultation, scrutiny by committees of Parliament, and debates in the House before being approved.
    • The changes described here have not gone through such a process.
    • However, most of these have a three-month time limit, and any extension would need to be approved by the legislature.

    What else could have been done?

    1.Allow two shifts

    • There is already too much-unused capacity. Firms are shaving off salaries up to 40% and making job cuts. The overall demand has fallen. Which firm will hire more employees right now, he asked.
    • If the intention was to ensure more people have jobs, then states should not have increased the shift duration from 8 hours to 12 hours.
    • They should have allowed two shifts of 8-hours each instead so that more people can get a job.
    • This move and the resulting fall in wages will further depress the overall demand in the economy, thus hurting the recovery process.

    2.Partnered with the industry

    • Most governments have done across the world have partnered with the industry and allocated 3% or 5% of the GDP towards sharing the wage burden and ensuring the health of the labourers.
    • Moreover, beyond labour regulations, firms face a lot of other hurdles like the shortage of skilled labour and the weak enforcement of contracts etc.
    • Time demands to secure the labour most than their employers.
  • Indigenous antibody test: COVID Kavach ELISA

    Indian Council of Medical Research (ICMR)-National Institute of Virology (NIV) at Pune has developed and validated the indigenous IgG ELISA test “COVID KAVACH ELISA” for antibody detection for COVID-19.

    Our thumb rule suggests that the ELISA test is being used only for the diagnosis of HIV infection. Right?

    But the ELISA test is a broader term to diagnose antibody-antigen interaction after certain virus infection to a person.  UPSC can test your basic knowledge of core biology with a question based on this concept.

    What is ELISA test?

    • ELISA (enzyme-linked immunosorbent assay) is a plate-based assay technique designed for detecting and quantifying substances such as peptides, proteins, antibodies and hormones.
    • Other names, such as enzyme immunoassay (EIA), are also used to describe the same technology.
    • In an ELISA, an antigen must be immobilized on a solid surface and then complexed with an antibody that is linked to an enzyme.
    • Detection is accomplished by assessing the conjugated enzyme activity via incubation with a substrate to produce a measurable product.
    • The most crucial element of the detection strategy is a highly specific antibody-antigen interaction.

    What are antibodies?

    • An antibody is a large, Y-shaped protein produced mainly by plasma cells that are used by the immune system to neutralize pathogens such as pathogenic bacteria and viruses.
    • There are five immunoglobulin classes (isotypes) of antibody molecules found in serum: IgG, IgM, IgA, IgE and IgD.
    • They are distinguished by the type of heavy chain they contain.

    Application of ELISA

    • Presence of antigen or the presence of antibody in a sample can be evaluated
    • Determination of serum antibody concentrations in a virus test
    • Used in the food industry when detecting potential food allergens
    • Applied in disease outbreaks- tracking the spread of disease e.g. HIV, bird flu, common, colds, cholera, STD etc

    Significance

    • Robust antibody tests are critical for surveillance to understand the proportion of the population exposed to infection.
    • The test will have the advantage of testing 90 samples together in a single run of 2.5 hours.
    • Moreover, ELISA based testing is easily possible even at the district level as the ELISA kit has an inactivated virus.
    • There are also minimal bio-safety and bio-security requirements as compared to the real-time RT-PCR test.
    • The test has the advantage of having much higher sensitivity and specificity as compared to the several rapid test kits which have recently flooded the Indian market.

    Limitations

    • Since the ELISA test is based on the detection of antibodies, it can only help in knowing if the person has been previously infected by a coronavirus.
    • It takes one-three weeks for the antibodies to develop in response to infection.
    • So, if a person who has been recently infected by the virus is tested during the window period (the time taken to develop antibodies) the result will turn out to be negative.
    • But a repeat test after a couple of weeks will indicate the true infection status.

    How it is different from the PCR test?

    • While the RT-PCR, which detects the RNA of the coronavirus, enables detection of current infection, it will not be useful if the testing is carried out days after the infection clears as the virus will no longer be present.
    • However, antibodies developed in response to the coronavirus infection will be present in the blood for a longer duration and hence the ELISA test can help detect past infection.
    • The maximum time the antibodies will be present in the body is not known for coronavirus.

    Back2Basics: Reverse Transcriptase – Polymerase Chain Reaction (PCR) Test

    • It uses a technique that creates copies of a segment of DNA. ‘Polymerase’ refers to the enzymes that make the copies of DNA.
    • Kary Mullis, the American biochemist who invented the PCR technique, was awarded the Nobel Prize for Chemistry in 1993.
    • The ‘chain reaction’ is how the DNA fragments are copied, exponentially — one is copied into two, the two are copied into four, and so on.
    • However, SARS-COV-2 is a virus made of RNA, which needs to be converted into DNA. For this, the technique includes a process called reverse transcription.
    • A ‘reverse transcriptase’ enzyme converts the RNA into DNA. Copies of the DNA are then made and amplified.
    • A fluorescent DNA binding dye called the “probe” shows the presence of the virus. The test also distinguishes SARS-COV-2 from other viruses.
  • Florence Nightingale and her legacy

    The 200th birth anniversary of Florence Nightingale, founder of modern nursing, falls tomorrow on May 12.

    Personality based questions sometimes find their way in the Prelims. For example:

    Q) A recent movie titled The Man Who Knew Infinity is based on the biography of – (CSP 2016)

    (a) S. Ramanujan

    (b) S. Chandrasekhar

    (c) S. N. Bose

    (d) C. V. Raman

    Who was Florence Nightingale?

    • Nightingale (1820-1910), who had considerable mathematical skills, is credited with being the first healthcare professional to use data to show that infection control improves health outcomes.
    • Through her career, she stressed a practice that is relevant as ever today — handwashing.

    Nurse and mathematician

    • Her signature effort came during the Crimean War (1854-56), when she answered a government call for nurses and took a posting in Turkey.
    • This is where she earned the name ‘Lady with the Lamp’, for walking around patients’ beds at night, holding a lamp. Here she did her pioneering work with statistics.
    • When she arrived, diseases such as cholera and typhus were rife in the hospitals.
    • Nightingale collected data, calculated the mortality rate, and showed that an improvement of sanitary methods would reduce the number of deaths.
    • The mortality rate dropped from 60% to 42.7% by February 1855, and to 2.2% by the spring.

    • She used her data to create graphics, the most famous of which is a polar area diagram (pictured) that used areas to represent variations in death rate.
    • The blue wedges from the center of the circle represent area for the deaths from Preventable or Mitigable diseases, the red wedges measured from the center is deaths from wounds, & the black wedges measured from the center is the deaths from all other causes.
    • The blue wedges, representing death by sickness, are far bigger than those representing wounds.
  • Mapping: Islands in the Pacific

    Approximately four months after COVID-19 was first detected, the South Pacific Islands have not yet reported any cases of the infectious disease.

    Closely observe the map. Note important islands. UPSC may shift its traditional focus from middle east/central asia to this region. These days, Pacific and Indo-Pacific region carry a decent importance.

    We can expect MCQs asking to arrange these islands in north-south / east-west direction.

    Which South Pacific islands have recorded cases of COVID-19?

    • Fiji recorded its first case of COVID-19 on March 19.
    • Guam, a territory of the US in the South Pacific, witnessed an outbreak among the staff of the US navy.
    • New Caledonia also recorded its first COVID-19 cases in mid-March, with links to overseas travel.
    • The Solomon Islands, the Cook Islands, Tonga, Tuvalu, Vanuatu, the Marshall Islands, Palau and Nauru have no recorded cases of COVID-19.

    What impact will COVID-19 have on Pacific island nations?

    • A widespread outbreak of COVID-19 will have a disastrous impact on these island nations.
    • Although these islands are popular with tourists, the outer islands and rural villages are home to indigenous populations.
    • Most of these areas have a very basic infrastructure for healthcare, with larger hospitals and medical centres located in bigger towns.
    • Even in everyday circumstances, these small medical centres struggle due to the lack of medical supplies.
    • The socio-cultural factors, like the prevalence of large families in this region, also make the individuals susceptible to community transmission.
    • There is also a lack of access to running water, making sanitation difficult.
    • Environmental factors like the seasonal tropical cyclone that swept through the region in April, led to the displacement of hundreds of people in the Solomon Islands, Fiji, Vanuatu and Tonga.
  • Species in news: Sal Forest Tortoise

    A recent study by ecologists in the Wildlife Institute of India, Dehradun, has found that the area designated as a protected area network has only a small overlap with the actual habitat of Sal forest tortoise. Over 90% of the potential distribution of the species falls outside the current protected area’s network.

    What you should focus on?

    On map, identify areas where Sal forest tortoise are found.

    Revise the map of various Forest system of India and their characteristics as well.

    Also…..Is tortoise a mammal or an amphibian?…..or something else??

    Sal Forest/ Elongated Tortoise

    • Also known as the elongated tortoise (Indotestudo elongata), the sal forest tortoise, recently assessed as Critically Endangered, is heavily hunted for food.
    • It is collected both for local use, such as decorative masks, and international wildlife trade.
    • The Sal forest tortoise is widely distributed over eastern and northern India and Southeast Asia.
    • It is one of the only four land tortoises found in India. It is legally protected under Schedule IV of the Indian Wildlife (Protection) Act, 1972 as amended up to 2006.
    • According to the IUCN, the population of the species may have fallen by about 80% in the last three generations (90 years).

    About Sal Forest

    • It is a forest type dominated by a single plant species, commonly known as Sal tree (Shorea robusta).
    • It belongs to the category ‘Tropical Moist Deciduous Forest’.
    • The distribution of Sal forests is controlled by the conditions of topography, geology, and soil.
    • Sal forests are mainly distributed in the South and Southeast Asia, occurring along the base of Tropical Himalayas from Assam to Punjab, in the eastern districts of Central India, and on the Western Bengal Hills.

    Also read the complete series on-

    Natural Vegetation and Wildlife- Part 1 | An Overview of Natural Vegetation Types Found in India

  • [pib] Mission SAGAR

    As part of India’s outreach amidst the ongoing COVID-19 pandemic, ships have departed for Maldives, Mauritius, Seychelles, Madagascar and Comoros, to provide Food Items, COVID related Medicines including HCQ Tablets and Medical Assistance Teams under Mission Sagar.

    Mission SAGAR, unlike other missions, can create confusion with the name and its purpose. Make note of such special cases. UPSC can ask such questions as one liner MCQs.

    Mission SAGAR

    • As part of the mission, INS Kesari would enter the Port of Male in the Republic of Maldives, to provide them 600 tons of food provisions.
    • The deployment is in consonance with the PMs vision of Security and Growth for All in the Region ‘SAGAR’.
    • This deployment is in line with India’s role as the first responder in the region and builds on the excellent relations existing between these countries to battle the COVID-19 pandemic and its resultant difficulties.
    • The operation is being progressed in close coordination with the Ministries of Defence and External Affairs, and other agencies of the govt.

    Back2Basics

    SAGAR Programme (Security and Growth for All in the Region)

    • SAGAR is a term coined by PM Modi in 2015 during his Mauritius visit with a focus on the blue economy.
    • It is a maritime initiative which gives priority to the Indian Ocean region for ensuring peace, stability and prosperity of India in the Indian Ocean region.
    • The goal is to seek a climate of trust and transparency; respect for international maritime rules and norms by all countries; sensitivity to each other`s interests; peaceful resolution of maritime issues; and increase in maritime cooperation.
    • It is in line with the principles of the Indian Ocean Rim Association.

    IORA (Indian Ocean Rim Association)

    • Established in 1997 in Ebene Cyber City, Mauritius.
    • First established as Indian Ocean Rim Initiative in Mauritius on March 1995 and formally launched in 1997 by the conclusion of a multilateral treaty known as the Charter of the IORA for Regional Cooperation.
    • It is based on the principles of Open Regionalism for strengthening Economic Cooperation particularly on Trade Facilitation and Investment, Promotion as well as Social Development of the region.
  • [Burning Issues] Fiscal Push for MSME Sector of India (Part II)

    COVID-19 and MSMEs

    • The MSMEs were already struggling — in terms of declining revenues and capacity utilization — in the lead-up to the Covid-19 crisis.
    • The total lockdown has raised a question mark on workers payment primarily because these firms mostly transact on cash. That explains the job losses.
    • The problem with most small Indian businesses is that they operate on thin margins and don’t have the deep financial resources to survive a significant dip in cash flows.
    • So, when an unexpected event like a lockdown happens and MSMEs can’t sell/produce their goods or services, it also means for many they can’t meet their monthly expenses – this includes costs like paying salaries to their employees.

    Fiscal stimulus package to MSMEs under Atmanirbhar Bharat Abhiyan

    Finance Minister has announced the first tranche of the Atmanirbhar Bharat Abhiyan economic package. The main thrust of the announcements was a relief to Medium, Small and Micro Enterprises (MSMEs) in the form of a massive increase in credit guarantees to them.

    What is the package about?

    Instead of directly infusing money into the economy or giving it directly to MSMEs in terms of a bailout package, the government has resorted to taking over the credit risk of MSMEs.

    1) 100% credit guarantee

    • Firstly, it will give a 100% credit guarantee for Rs 3 lakh crore worth of collateral-free loans to MSMEs that were doing fine before the pandemic hit and are now in trouble.
    • This deal will only apply to small businesses that already had an outstanding loan of Rs 25 crore or those with a turnover of less than Rs 100 crore.
    • This doesn’t mean the government is directly infusing Rs 3 lakh crore into India’s MSMEs.
    • Put simply, if an MSME wants to take a loan of Rs 1 crore from a bank now, the Centre is saying that if the business fails to repay that loan, it will step in and make good all of that Rs 1 crore.
    • Thus, banks don’t have to worry about potential NPAs – that headache is transferred to the government.

    2) Subordinate debt scheme

    • The second measure is a ‘subordinate debt scheme’ worth Rs 20,000 crore and is mainly for MSMEs who are already struggling with debt and are unlikely to get fresh funding by themselves.
    • This scheme will allow banks and NBCs to give loans to MSMEs which are already deemed as ‘stressed’ and are thus less credit-worthy.
    • For these firms, the government will only provide partial credit guarantee support to banks.

    3) Availability of Funds

    • The final step involves the government creating a Rs 50,000-crore fund which will infuse equity into “viable” MSMEs, thus helping them to expand and grow.
    • The Centre will put only Rs 10,000 crore into this and get other PSU institutions like SBI or LIC to help fund the remaining amount.
    • The basic idea behind this is that MSMEs who have been forced into a cash-strapped corner by the national lockdown will be able to apply for some working capital that will keep their businesses afloat until they are able to operate at pre-pandemic levels.
    • By doing this, the government also hopes to protect the employment that MSMEs create and thus save jobs.

    4)Other measures

    • There are two other MSME policy announcements – one aimed at bringing more firms into the MSME net, while the other is oriented towards providing a level playing field.
    • The first is defining what the firm gets to be an ‘MSME’ and avail of all the government benefits that are given to that category of business.
    • The criteria have been expanded quite loosely and will mean that companies don’t have to be as small as they were to avail of MSME benefits.
    • Put simply, the government will now subsidize more smaller companies than they used to.
    • Second, there is a change in the definition of an MSME that was pending for long.
    • Now MSMEs will be judged on turnover and there will be no difference between a manufacturing MSME and services MSME.
    • FM also extended the initiation period of fresh insolvency proceedings against MSMEs by six months to up to one year depending upon the COVID situation.

    Need for such measures

    • Even before the Covid-19 crisis, Indian government finances were in poor health. This pandemic has meant that government revenues will come under further pressure.
    • For instance, experts are already talking about a GDP contraction of 5% to 10% in the current financial year. It will result in a revenue loss of anywhere between Rs 5 to 7 lakh crore.
    • And yet, this is also the year when employees and firms want the government to help them out financially.
    • Banks, quite justifiably, suspect that any new loans will only add to their growing mountain of non-performing assets (NPAs).
    • So the government was facing an odd problem: Banks had the money but were not willing to lend to the credit-starved sections of the economy, while the government itself did not have enough money to directly help the economy.

    • The solution — credit guarantees — finally chosen by the government is not a new one, because this fiscal conundrum is not a new one either (see chart).

    Why Rs 3 lakh crore?

    • The total outstanding loan to MSMEs by the banking and NBFC sector is around Rs 16 to 18 lakh crore.
    • Assuming that 80% of these loans are working capital loans where there would be a 20% incremental funding needs, that gives an amount of approximately Rs 3 lakh crore.
    • So the government is hoping that this credit guarantee will help those MSMEs take out another loan and recover.
    • The hope is that since these MSMEs were able to pay back before the crisis, there is no reason why they cannot after the crisis, provided they are given some extra money to survive this period.

    How far will these measures help?

    • The Rs 3 lakh crore credit guarantees are the most substantive announcement as it will most likely have a significant impact.
    • It will help MSMEs pay salaries and keep their heads above the water even as the economy slows down.
    • This measure is expected to help as many as 45 lakh MSMEs.

    Issues with the package

    1) No banks consulted

    • The scheme for MSMEs has left bankers unhappy as the guarantee is not being offered by the government, but from the credit guarantee trust fund for micro and small enterprises (CGTMSE) instead of being a sovereign guarantee.

    2) Criteria of availability

    • The benefits of the package will not be available to businesses which had repayments overdue by more than 30 days as on Feb 29, 2020.
    • Only for the stressed MSMEs and those whose loans have turned bad, a Rs 20,000-crore subordinated debt scheme has been envisaged.

    3) Employee’s welfare faintly addressed

    • With the package, the government has mandated MSMEs for paying the wages.
    • The MSMEs are short of revenues to be able to pay the salaries. It has now become a matter of ability to pay.
    • Manpower cost for ancillary suppliers is one of the largest. Not every company has the ability to pay their employees so going forward will be more stressful.

    4) Too much of loans

    • The package has offered for taking additional loans, but the MSME sector is already leveraged heavily.
    • At this point, taking additional loans can help with major short term liquidity, but in the longer-term, the companies or the units abilities for repaying these loans is grossly neglected.
    • Also the onus on increasing the competitiveness of MSMEs post the lockdown has been grossly neglected.

    Way forward

    • The challenge now is to create a policy environment that will encourage the growth of more MSME that can hold their own in a competitive market.
    • The problems faced by MSMEs need to be considered in a disaggregated manner for successful policy implementation as they produce very diverse products, use different inputs and operate in distinct environments.
    • In general, there is a need for tax provisions and laws that are not only labour-friendly but also entrepreneur-friendly.
    • More importantly, there is a need for skill formation and continuous upgrade both for labour and entrepreneurs.
    • While the government has to strengthen the existing skilling efforts for labour, there is an urgent need for managerial skill development for entrepreneurs running MSMEs — an area that is considerably neglected.
    • Further, the government could consider dedicated television and radio programmes, similar to agriculture, to help educate entrepreneurs running small businesses.

    Conclusion

    Covid-19 is a crisis with an unforeseeable ending. What is clear though is that the government and businesses—both large and small—will have to work together to ensure the protection of workers, be ready for risk management in terms of phased re-starting of business operations and be prepared and open to structural changes in business activities.

    • Issues related to credit, like adequacy, timely availability, cost and mortgages continue to be a concern for MSME. These enterprises are dependent on self-finance. Profit margins are also low.
    • The government drive for financial inclusion could benefit such entities.
    • The government could consider dedicating specialised financial schemes for addressing difficulties in assessing and providing credit for small enterprises, as also providing a line of credit to firms which are under financial stress.
    • The road ahead remains unclear, but it is likely that the economic damage is already much larger than the measures undertaken so far.
    • A continued focus on reforms and on sustaining India’s growth potential will be critical in preventing macroeconomic instability.

     

     

     




    References

    https://www.civilsdaily.com/news/what-makes-msmes-most-vulnerable-to-covid-19-disruptions/

    https://www.cii.in/Sectors.aspx?enc=prvePUj2bdMtgTmvPwvisYH+5EnGjyGXO9hLECvTuNuXK6QP3tp4gPGuPr/xpT2f

    https://economictimes.indiatimes.com/cibil/articles/msme-sector-panacea-of-all-ills/articleshow/61836122.cms?from=mdr

    https://thewire.in/economy/narendra-modi-msme-package-cost


    Also read: Various schemes related to MSME Sector

    [Prelims Spotlight] Acts and schemes related to MSME sector

  • [Prelims Spotlight] Important summits, conventions and Declarations (Part 2)

    Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

    Important Summits, Conventions and Declarations (Part 2)


    11 May 2020

    1.Convention on biological diversity

    The Convention on Biological Diversity (CBD), a legally binding treaty to conserve biodiversity has been in force since 1993.

    Objectives-

    • It has 3 main objectives: The conservation of biological diversity.
    • The sustainable use of the components of biological diversity.,fair and equitable sharing of the benefits arising from the use of genetic resources.
    • The CBD, one of the key agreements adopted during the Earth Summit held in Rio de Janeiro in 1992, is the first comprehensive global agreement which addresses all aspects relating to biodiversity.

    2.Asia Lpg summit 2019

    The summit will offer a unique opportunity to the global LPG industry to interact with development agencies, NGOs and non-profit organizations who have facilitated last-mile access to LPG for the beneficiaries.

    Objectives-

    • The summit will also bring together academia and private sector to exchange their views on the use of LPG and how pathbreaking initiatives such as ‘Pradhan Mantri Ujjwala Yojana’ can bring remarkable socio-economic transformation.
    • The WLPGA promotes the use of LPG to foster a cleaner, healthier and more prosperous world.
    • With over 200 members and presence in more than 125 countries, the WLPGA represents the interests of private and public companies from the entire LPG value chain under one umbrella.
    • The WLPGA provides a platform for the exchange of best practices, facts and figures among its members.
    • The Association regularly organises interactive meetings between technical experts, members and key stakeholders to demonstrate the benefits of LPG.

    3.Global Digital Health Partnership Summit

    The Global Digital Health Partnership (GDHP) is an international collaboration of governments, government agencies and multinational organisations dedicated to improving the health and well-being of their citizens through the best use of evidence-based digital technologies.

    Objectives-

    • Governments are making significant investments to harness the power of technology and foster innovation and public-private partnerships that support high quality, sustainable health and care for all. The GDHP facilitates global collaboration and co-operation in the implementation of digital health services.The GDHP is committed to improving health and care through promoting its principles of equality, co-operation, transparency and responsibility.
    • Equality: All participants will have an equal opportunity to participate and contribute to the development of the GDHP deliverables and share in the lessons learnt and outputs of the GDHP.
    • Co-operation: Participants are helpful and supportive and participate in debates thoughtfully, constructively and respectfully.
    • Transparency: Participants act with openness in their engagement with fellow participants to contribute to improved health services, promote innovation and create safer and healthier communities.
    • Responsibility: Participants are responsible for their country’s input through their active contribution to GDHP activities that are guided by the annual work plan. Each participant shall endeavour to ensure that outcomes from meetings, such as tasks appointed to them or in general, are carried out effectively and efficiently. Participants will make decisions and participate in discussions in a transparent and fair manner, using evidence, and without discrimination or bias, ensuring they act in the public interest and not for commercial purposes.

    4.TIR

    The Convention on International Transport of Goods Under Cover of TIR Carnets is a multilateral treaty that was concluded at Geneva on 14 November 1975 to simplify and harmonise the administrative formalities of international road transport.

    Objectives-

    • The TIR Convention establishes an international customs transit system with maximum facility to move goods:in sealed vehicles or containers;
    • from a customs office of departure in one country to a customs office of destination in another country;
    • without requiring extensive and time-consuming border checks at intermediate borders;
    • while, at the same time, providing customs authorities with the required security and guarantees.

    5.International Workshop on Disaster Resilient Infrastructure

    The workshop aims to i) identify good practices of disaster risk management in key infrastructure sectors, ii) identify specific areas and pathways for collaborative research on DRI (Transport, Energy, Telecom and Water), iii) discuss and co-create the broad contours of the Coalition for Disaster Resilient Infrastructure (CDRI) as well as a notional roll-out plan for the next three years, and iv) build a forum for members to work on areas of common interest and make specific commitments.Various international agreements have also reiterated the importance and long-term benefits of investing in resilient infrastructure.

    Objectives-

    • The Sendai Framework for Disaster Risk Reduction (SFDRR), 2015-2030, which is the first major agreement of the post-2015 development agenda, identifies investing in Disaster Risk Reduction (DRR) for resilience and to build back better in reconstruction as priorities for action towards reducing disaster risk.
    • Similarly, Goal 9 of the Sustainable Development Goals (SDGs) recognizes disaster resilient infrastructure as a crucial driver of economic growth and development.
    • Besides reducing infrastructure losses, disaster resilient infrastructure will also help achieve targets pertaining to reduction in mortality, number of affected people and economic losses due to disasters.

    6.International Chemical Weapons Convention (CWC)

    The Chemical Weapons Convention is an arms control treaty that outlaws the production, stockpiling, and use of chemical weapons and their precursors.

    Key points of the Convention

    Objectives-

    • Prohibition of production and use of chemical weapons
    • Destruction (or monitored conversion to other functions) of chemical weapons production facilities
    • Destruction of all chemical weapons (including chemical weapons abandoned outside the state parties territory)
    • Assistance between State Parties and the OPCW in the case of use of chemical weapons
    • An OPCW inspection regime for the production of chemicals which might be converted to chemical weapons
    • International cooperation in the peaceful use of chemistry in relevant areas

    7.Convention on Supplementary Compensation for nuclear Damage (CSC)

    The Vienna Convention on Civil Liability for Nuclear Damage is a 1963 treaty that governs issues of liability in cases of a nuclear accident. It was concluded at Vienna on 21 May 1963 and entered into force on 12 November 1977. The convention has been amended by a 1997 protocol. The depository is the International Atomic Energy Agency.

    Objectives-

    • The Convention on Supplementary Compensation (CSC) aims at establishing a minimum national compensation amount and at further increasing the amount of compensation through public funds to be made available by the Contracting Parties should the national amount be insufficient to compensate the damage caused by a nuclear incident.
    • The Convention is open not only to States that are party to either the Vienna Convention on Civil Liability for Nuclear Damage or the Paris Convention on Third Party Liability in the Field of Nuclear Energy (including any amendments to either) but also to other States provided that their national legislation is consistent with uniform rules on civil liability laid down in the Annex to the Convention.

    8.Hague Code of Conduct

    The International Code of Conduct against Ballistic Missile Proliferation, also known as the Hague Code of Conduct (HCOC), was established on 25 November 2002 as an arrangement to prevent the proliferation of ballistic missiles.

    Objectives-

    • The HCOC is the result of international efforts to regulate access to ballistic missiles which can potentially deliver weapons of mass destruction. The HCOC is the only multilateral code in the area of disarmament which has been adopted over the last years.
    • It is the only normative instrument to verify the spread of ballistic missiles.
    • The HCOC does not ban ballistic missiles, but it does call for restraint in their production, testing, and export.

    9.Refugee Convention

    The Convention Relating to the Status of Refugees, also known as the 1951 Refugee Convention, is a United Nations multilateral treaty that defines who is a refugee and sets out the rights of individuals who are granted asylum and the responsibilities of nations that grant asylum. In the general principle of international law, treaties in force are binding upon the parties to it and must be performed in good faith. Countries that have ratified the Refugee Convention are obliged to protect refugees that are on their territory, in accordance with its terms. There are a number of provisions that States parties to the Refugee Convention must adhere to.

    10.Biological weapons convention

    The Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological and Toxin Weapons and on Their Destruction was the first multilateral disarmament treaty banning the production of an entire category of weapons.

    Objectives-

    • Each State Party to this Convention undertakes never in any circumstances to develop, produce, stockpile or otherwise acquire or retain:
    • Microbial or other biological agents, or toxins whatever their origin or method of production, of types and in quantities that have no justification for prophylactic, protective or other peaceful purposes;
    • Weapons, equipment or means of delivery designed to use such agents or toxins for hostile purposes or in armed conflict.”
    • The United States Congress passed the Bioweapons Anti-Terrorism Act in 1989 to implement the Convention. The law applies the Convention’s convent to countries and private citizens, and criminalizes violations of the Convention.

    11.Sendai Framework

    The Sendai Framework for Disaster Risk Reduction (2015-2030) is an international document which was adopted by UN member states between 14th and 18th of March 2015 at the World Conference on Disaster Risk Reduction held in Sendai, Japan and endorsed by the UN General Assembly in June 2015. It is the successor agreement to the Hyogo Framework for Action (2005–2015), which had been the most encompassing international accord to date on disaster risk reduction.

    Objectives-

    • The Sendai Framework sets four specific priorities for action:
    • Understanding disaster risk;
    • Strengthening disaster risk governance to manage disaster risk;
    • Investing in disaster risk reduction for resilience;
    • Enhancing disaster preparedness for effective response, and to “Build Back Better” in recovery, rehabilitation and reconstruction.

    12.Outer Space Treaty

    The Outer Space Treaty, formally the Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies, is a treaty that forms the basis of international space law. The 1967 Outer Space Treaty bans the stationing of weapons of mass destruction (WMD) in outer space, prohibits military activities on celestial bodies, and details legally binding rules governing the peaceful exploration and use of space.

    13.Kyoto Protocol

    The Kyoto Protocol is an international treaty which extends the 1992 UNFCCC that commits State Parties to reduce greenhouse gas emissions, based on the premise that

    (a) global warming exists and (b) human-made CO2 emissions have caused it.

    Objectives-

    • The main feature of the Protocol is that it established legally binding commitments to reduce emissions of greenhouse gases for parties that ratified the Protocol.
    • The commitments were based on the Berlin Mandate, which was a part of UNFCCC negotiations leading up to the Protocol.
    • Minimizing Impacts on Developing Countries by establishing an adaptation fund for climate change.

    14.U.N. Frame Work Convention on Climate Change (UNFCCC)

    Objectives-

    • A framework for international cooperation to combat climate change by limiting average global temperature increases and the resulting climate change, and coping with impacts that were inevitable.
    • The primary goals of the UNFCCC were to stabilize greenhouse gas emissions at levels that would prevent dangerous anthropogenic interference with the global climate.
    • The convention embraced the principle of common but differentiated responsibilities which has guided the adoption of a regulatory structure.

    15.Basel Convention

    • The industrialized world in the 1980s had led to increasing public resistance to the disposal of hazardous wastes, in accordance with what became known as the NIMBY (Not in My Back Yard) syndrome, and to an increase of disposal costs.
    • This, in turn, led some operators to seek cheap disposal options for hazardous wastes in the developing countries.
    • Environmental awareness was much less developed and regulations and enforcement mechanisms were lacking. The objectives of the convention are to reduce trans-boundary movements of hazardous wastes, to minimize the creation of such wastes and to prohibit their shipment from developed countries to the LDCs.

    16.Montreal Protocol

    Objectives-

    • The protocol set targets for reducing the consumption and production of a range of ozone-depleting substances.
    • In a major innovation, the protocol recognized that all nations should not be treated equally.
    • The agreement acknowledges that certain countries have contributed to ozone depletion more than others.
    • It also recognizes that a nation‘s obligation to reduce current emissions should reflect its technological and financial ability to do so.
    • Because of this, the agreement sets more stringent standards and accelerated phase-out time tables to countries that have contributed most to ozone depletion

    17.World Conservation Strategy

    Objectives-

    • It set out fundamental principles and objectives for conservation worldwide and identified priorities for national and international action.
    • It is considered one of the most influential documents in 20th-century nature conservation and one of the first official documents to introduce the concept of sustainable development.

    18.Convention on Migratory Species of Wild Animals (Bonn Convention)

    Objectives-

    • Aims to conserve terrestrial, marine and avian migratory species throughout their range.
    • The Convention facilitates the adoption of strict protection measures for endangered migratory species, the conclusion of multilateral agreements for the conservation and management of migratory species, and co-operative research activities.

    19.World Sustainable Development summit

    • WSDS has replaced TERI’s earlier called Delhi Sustainable Development Summit (DSDS). The first DSDS was organised in 2005. It underscored the need for businesses and the private sector to take lead in poverty reduction and to ensure rapid and sustained adoption of Sustainable Development Goals (SDGs).
    • It had brought together Nobel laureates, decision-makers political leaders from around the world to deliberate on issues related to sustainable development.
    • The aim of the summit is to provide various stakeholders with a single platform in order to provide long-term solutions for the benefit of the global community.

    20.Kigali Agreement

    The Kigali Amendment amends the 1987 Montreal Protocol to now include gases responsible for global warming and will be binding on countries from 2019.

    Objectives-

    • It also has provisions for penalties for non-compliance.
    • It is considered absolutely vital for reaching the Paris Agreement target of keeping global temperature rise to below 2-degree Celsius compared to pre-industrial times.
    • Under it, developed countries will also provide enhanced funding support estimated at billions of dollars globally. The exact amount of additional funding from developed countries will be agreed at the next
    • Meeting of the Parties in Montreal in 2017 to reduce the emissions of category of greenhouse gases (GHGs) which leads to hydro fluorocarbons (HFCs)