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  • Maldives-India India begins largest ever medical camp in Maldives

    The medical camp, held from Sunday till Tuesday at the state run Indira Gandhi Memorial Hospital (IGMH) in capital Male is run by a urologist (urinary system specialist), nephrologist (kidney specialist) and a specialist of body defects.
    India is the preferred destination for Maldivians who often travel abroad to receive medical treatment.
    In a statement, the high commission said last week that India’s largest naval ship, the aircraft carrier INS Vikramaditya, will arrive in Male on a goodwill visit to Maldives from February 15-18. INS Vikramaditya will be accompanied by two ships, INS Mysore and INS Deepak.
    The visit by an unprecedented fleet of Indian military might to the Maldives follows intensified efforts by both the Maldives and India to improve relations.

    Late last month India agreed to donate a utility aircraft and another helicopter to the Maldives.

    India had donated two utility helicopters to the Maldives in 2010. Both the choppers are operated out of the domestic airport in the southern island of Kahdhoo in Laamu atoll.

    India granted more than US$240,000 (MVR3.8 million) to the Maldives in December to establish facilities to operate and maintain the two helicopters.

    Ties between the Maldives and India are on the mend after reaching its lowest point following the premature termination in 2013 of the agreement with Indian infrastructure giant GMR, which had been managing the country’s main international airport since 2011.

    On November 1, 1965, India established diplomatic relations with the Maldives, becoming the first country to do so following the latter’s independence from Britain in July.

    India, meanwhile, has publicly sided with the Maldives government over the continued imprisonment of the country’s former president Mohamed Nasheed, an issue central to the Maldives’ relationship with its international partners.

  • Monthly compilation of Science and tech

    Sir,please provide compilation for Science and Tech.I am hnable to cope with the current affairs of science,please provide some remedie.

  • [CLOSED] Civilsdaily is looking for part-time translators

    Thanks for the amazing response. We got over 100 applications and we have shortlisted a few. We will be contacting you guys over phone. The application is closed for now. If you still wish to connect with us, feel free to drop a mail 🙂


     

    Hello,

    We are looking for part time translators (English to Hindi) to join the content team for its upcoming Hindi version.

    • Role: Candidates are required to translate English news cards into Hindi
    • Experience: No prior experience is required
    • What do we need? Candidates with a good command over both the languages

    You need to do a simple exercise. Translate these two english news cards into hindi. You need to read the text in english and then recreate the same magic in hindi. Do not use google auto translate. Please use google input tools instead – https://www.google.com/inputtools/try/


    You can fill up this application form or provide us with your personal details (along with text translation) over email at hello@civilsdaily.com

    Google application form - Click here

    Translate the following and send over – 

    NITI Aayog: 2nd regional consultation

    1. Context: 2nd Regional Consultations on Agricultural Development in New Delhi
    2. Held by: NITI Task Force on Agricultural Development under the chairmanship of Vice Chair Arvind Panagariya
    3. Demands: southern states pitched for preparation of a model land leasing act and higher remunerative prices for farmers
    4. Other areas: shared best practices in area of agriculture and water resources; river linking and water conservation and harvesting; emphasis on strengthening of agricultural co-operatives

    Pact to develop Vizag as smart city

    1. Context: Pact between US Trade & Development Agency (USTDA) & Andhra Pradesh Government
    2. Aim: To develop infrastructure, communications and data systems
    3. Smart city: Development is in line with its goal to become a Smart City
    4. Award: this cooperation is particularly timely as Vizag recently won 1st phase of Smart Cities Challenge by GoI
    5. Impact: Development and modernization efforts will be partially supported by the central government

    PS: This is a paid position. We are looking to extend our offerings in hindi and we are looking for 2 awesome translators to work with us on that.

  • [Video] Rajan’s solution for NPAs: Deep surgery not Band aid

    An Indian express report suggest that Public Sector Banks have written off huge sums of money from their balance sheet. It paints alarming picture of banking sector in India. Governor Rajan has suggested that mere band aid won’t do, deep surgery is required to nurse banking system to health.

    What’s the problem with the banking sector in India? Why are banks writing off such huge sums and what kind of surgery is governor Rajan prescribing? In this write up, we shall try to answer all these queries but first some basics of banking.

    https://youtu.be/wjOt13aPvJw


     

    A bank is a financial intermediary that connects savers (depositors, creditors) with borrowers. People deposit their money in the bank for which they get paid some interest rate. Deposit amount on bank balance sheet (account book) is put under liability category for banks have to pay that amount back with interest.

    Banks in turn lend that money to businesses and earn interest on it. Lent money is put under asset category as it generate income for the bank in the form of interest.

    Banks also have something called capital or equity which is brought in by promoters/ investors. The capital is to absorb losses if borrowers default on their commitment and do not pay back their loans.

    In summary, every banks has on its books, capital to absorb losses, assets which generate income and liabilities i.e. deposit amounts which have to be returned back with interest.

    What’s Provisioning?

    Whenever banks lend to any business, it carries with it some risk that money wouldn’t be paid back, borrower would dimply default. This risk is accounted for at the time of disbursal of loan itself in the form of keeping aside some capital in anticipation of future losses. This is called provisioning.

    For instance, if banks feel 1% of loans are likely to default, they will provision 1% against any loans they make, When a loan actually defaults, they don’t have to book huge loss for they have it already covered. Note that higher the likelihood of default, higher the amount of provisioning. Guidelines in this regard are prescribed by RBI.

    What is a non performing asset (NPA)?

    Asset is one which generates income for the bank in the form of interest. Assets are meant to perform function of generating cash flows for banks. When assets cease to perform that function i.e. do not pay back interest and installments, they become non performing and are known as non performing assets.

    Technical definition:  A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.

    Banks are required to classify NPAs further into Substandard, Doubtful and Loss assets.

    1. Substandard assets: Assets which has remained NPA for a period less than or equal to 12 months.

    2. Doubtful assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.

    3. Loss assets: As per RBI, “Loss asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some salvage or recovery value.”

    Let’s understand all this with an example: 

    Suppose, SBI lent 100 rs to Mallya on 1st Jan 2015 which he has to return in 10 monthly installments of 12 rs each beginning 1st jan 2016.

    Mallya returns 1st and 2nd installments on 1st jan and 1st feb 2016 but does not return 3rd installment on 1st march. He simply refuses to pay back.

    Till 1st march 2016, this asst would be considered a standard asset as it was generating regular cash flows.

    • After 90 days from due date i.e. 1st june (1st March due date), it becomes an NPA.
    • From 1st june 2016 to 1st June 2017, it remains a substandard asset.
    • After 1st june 2017 it becomes a doubtful asset.

    When bank or auditors feel it’s virtually unrecoverable, it is termed as loss asset and after that it is taken off balance sheet in what is termed as writing off.

    Why wouldn’t banks want to declare bad loans as NPA?

    As NPAs carry higher risk of eventual default, provisioning for NPAs is higher than standard assets. They carry 15% provisioning. What this means is that banks have to set aside 15 rs to cover future losses, the same money they could have lent to someone else and earn interest on it. It basically brings down profitability of banks and erode their capital base.

    But isn’t it like extending problem to the future?

    Well, banks feel if they can continue lending to these assets so that they could repay interest (refinancing), some day economy will return and they will be able to repay all the debt. so they simply restructure the loan and keep these assets as standard assets. Rajan calls it policy of extending and pretending i.e. extending the loan and pretending as if everything’s alright even though there are serious underlying problems. This is what Rajan calls applying band aid.

    Total stressed assets = Gross NPAs + Restructured assets

    It’s true that some sectors are affected by economic downturn and would revive once economic cycle picks up speed but extending every loan for a long time creates problem of moral hazard and promoters simply lose interest in reviving the project for interest cost becomes too high with the rising debt. Banks keep on throwing good money after bad, day of reckoning eventually arrives when banks are forced to book huge losses and tax payers suffer.

    In PSBs, restructured assets are more than double of NPAs and analysts feel restructured assets to be as bad as NPAs.

    The other thing banks can do is recognize NPA as NPA and try to put project back on track. This would then lead to active intervention on the part of all parties concerned. Banks would take some hit on their balance sheet, write off some part, promoters will bring more equity, govt will provide clearances, tarriff authority can increase the tariff etc.

    What are all the things that banks can do?

    1. If management is inefficient, banks can change the management.
    2. Acquire majority stakes under strategic debt restructuring (SDR) and sell the asset to new promoters.
    3. Start liquidation proceedings if turnaround seems unlikely under SARFAESI act.
    4. Sell asset to Asset Reconstruction Companies (ARCs).

    This is what Rajan calls deep surgery but it would require recognizing the problem as NPA first. It would put strain on the profitability in the short run but cleaned up balance sheets would reflect true picture of the state of banks. Government will infuse capital in the banks so that banks are ready to lend money to deserving businesses which will lead to economic recovery as well as expand asset base.

    Economic recovery will help stressed assets to pay back their loans while expanded asset base will increase denominator bringing NPA ratio down thus starting a virtuous cycle.

    Gross NPA ratio = Total NPA/ Total asset base

    We can decrease NPA ratio by increasing the denominator i.e. lending more.

    A few more points:

    Banks lend against capital and Basal committee on banking supervision prescribes norms for capital adequacy.

    Capital Adequacy Ratio (CAR) = Total Capital/ Total risk weighted assets

    This ratio has to be maintained for soundness of banking system. It’s clear from the above that to expand asset base, banks need more capital and for PSBs government has to infuse more capital.

    PS– This article is to be read alongside this discussion to know the causes and ways of resolution of this mess.

    Read this analysis of RSTV

  • Part 5 | Supreme court of Hinduism? | Landmark Judgements that Transformed India

    If you want to know how it wall started, go back here.


     

    Having analysed a very sensitive issue of uniform civil code, we now move to discuss even more fundamental and more nuanced issue of intervention by the state and its courts in our religious affairs.

    Being a deeply religious society, questions pertaining to religious freedom such as  whether or not freedom of propagation of religion implied freedom to convert, constitutionality of religious shrines excluding women from sanctum sanctorum etc have constantly come up in courts. When courts sit in judgement over these issues, question arise on appropriateness or otherwise of secular courts interpreting religious scriptures and deciding what’s essential religious practice and what’s not.

    These are not irrelevant questions. They hit back to the fundamental values on which our Republic was founded upon. They involve conflict among various rights and hence are interesting (and important) to follow up.

    Before we analyse these issues, let us have a look at some appropriate constitutional provisions.

    Article 25

    Freedom of conscience and free profession, practice and propagation of religion

    (1) Subject to public order, morality and health and to the other provisions of this Part, all persons are equally entitled to freedom of conscience and the right freely to profess, practise and propagate religion

    (2)Nothing in this article shall affect the operation of any existing law or prevent the State from making any law

    (a) regulating or restricting any economic, financial, political or other secular activity which may be associated with religious practice;
    (b) providing for social welfare and reform or the throwing open of Hindu religious institutions of a public character to all classes and sections of Hindus

    Article 26

    Freedom to manage religious affairs

    Subject to public order, morality and health every religious denomination or any section thereof shall have the right

    (a) to establish and maintain institutions for religious and charitable purposes;
    (b) to manage its own affairs in matters of religion;
    (c) to own and acquire movable and immovable property; and
    (d) to administer such property in accordance with law

    From above it’s very clear that freedom of religion is not absolute freedom but – 

    1. Subject to public order, morality and health
    2. State can regulate secular activities associated with religion
    3. State can intervene for social welfare
    4. State can throw open Hindu temples of public character
    5. Administration of property has to be in according with law

    Note here that only Hindu (not Muslim or Christian) institutions and public (not private) institutions can be thrown open to public.

    Now question arises as to why so many restrictions on religious freedom in a liberal democracy. Answer was provided by Dr. Ambedkar

    The religious conceptions in this country are so vast that they cover every aspect of life, from birth to death. There is nothing which is not religion and if personal law is to be saved, I am sure about it that in social matters we will come to a standstill.

    In other words, a strict separation between religion and state would have prevented the Constitution from carrying out social revolution.

    Now let’s come back to the courts

    #1. Ram Prasad Seth v/s state of UP (1957)

    UP Government regulations prohibited bigamous marriages to those in public employment and they were challenged on the grounds of Article 25.

    What was the argument?

    Some senseless argument essentially stating there are some rites which could be performed only by sons and if 1st wife could not deliver son, marrying for the 2nd time was essential to live according to Hinduism.

    No gifts for guessing, Allahabad high court quashed the petition but in the process it invented a doctrine called essential religious practice.

    Note here that court could easily quash the petition on social reform ground but nevertheless it chose to invent a doctrine.

    #2. Queshi v/s state of Bihar (1958)

    The doctrine was lapped up by the supreme court. It held that the sacrifice of a cow on the occasion of Id was not an essential religious practice for Muslims. There was no social reform agenda here.

    Since than doctrine has spelt out the outer limits of what could be called the sole domain of religion. It has been applied countless times, most recently by Rajasthan high court in Santhara judgement. Again there was no question of an intended social reform for state to intervene in religious matters.

    In other jurisdictions, the Court only asks whether a particular practice is “sincerely held” by its adherent, a question that requires it to go into the adherent’s past behaviour and conduct, but not into the substantive nature of the practice itself.

    Now let’s come to the question of entry of women into temples – that is under consideration of supreme court

    Argument for goes something like this –

    1. Violates right to equality (art 15)
    2. Violates right to freedom of worship of women devotees (art 25). But the right to worship does not extend to worshiping in any and every place
    3. State responsibility to throw open hindu temples
    4. Excluding women is not an essential religious practice. Well, it’s customary practice going on for hundreds of years

    But it’s available only against public temples.

    In 1993, the Kerala High Court held that the management of the temple could restrict access to women who were in the 10-50 age group. This is what they opined – 

    “restriction imposed on women aged above 10 and below 50 from trekking the holy hills of Sabarimala and offering worship at Sabarimala Shrine is in accordance with the usage prevalent from time immemorial,” and that as such not violative of Articles 15, 25 and 26 of the Constitution of India.

    Clearly there is conflict between art 15  and art 25 and 26. Which one should prevail?

    If you recall article art. 25, it is subject to other provisions of part 3 of constitution. Article 15 is part of part 3. Let’s wait for supreme court judgement.

    Similarly issue is going on with regard to entry of women in Shani Shingnapur temple and Haji Ali mosque. There argument is that women were allowed to go to every part until few years back. Clearly, some clerics don’t want equal rights for women. Matter remains subjudice.

    #3. Ghar vapasi and conversion

    Religious conversion is a very sensitive issue in India and different communities have accused each other of conversion under duress or by allurement. Mass conversions sometimes create law and order problem.

    In this context M.P and Odisha passed anti conversion laws under which –

    1. Intimate the District Magistrate every time a conversion takes place
    2. Prohibit — and impose criminal liability on — conversion or attempt to conversion by the use of force or by inducement or by any other fraudulent means.

    #4. Rev. Stainislaus v. State of Madhya Pradesh

    On the ground that freedom of propagation implied freedom to convert.

    Court interpretations –

    1. “propagate,” mean transmitting or spreading one’s religion by an exposition of its tenets,” but it does not include the right to convert another person to one’s own religion
    2. There is no fundamental right to convert another person to one’s own religion because if a person purposely undertakes the conversion of another person to his religion, as distinguished from his effort to transmit or spread the tenets of his religion, that would impinge on the ‘freedom of conscience’ guaranteed to all the citizens of the country alike.”

    Of course there’s criticism that governments targets minorities through these laws.

    Similarly question of state interference in religious affairs arise when government subsidizes haj pilgrimage or kailash mansarovar Yatra.

    Supreme court has held such subsidy as constitutional though it directed govt to abolish haj subsidy. it again cited from Quran.

    Now, it’s time for some thought questions

    1. Religious traditions often respond to external interventions by growing more conservative and resisting reform. To what extent then is state intervention desirable in religious affairs?
    2. India might be the only republic where the judiciary can pronounce on matters not only relating to law, but also those concerning theology. To what extent is it appropriate for secular courts to interpret religious scripture?
    3. The Constitution does not mention the term “essential religious practice”: it grants protection to the right to practice, profess and propagate one’s religion, not just to engage in the “essential practices” of religion. To what extent is it right to restrict religious practices to essential practices as defined by supreme court?
    4. What’s the best way to reconcile right to freedom of religion with right to non discrimination?
    5. In what respects Indian secularism different from western concept of secularism?
  • Discussion and Debate

    Are Universities Becoming the breeding ground for Anti-national elements or its merely Saffornization of the institutions. Comments

  • RSTV | The Big Picture | Net Neutrality: Debate Rages On

    Context: In a historic decision Telecom Regulatory Authority of India (TRAI) barred differential pricing for data over internet a few days back.

    Q. What was the main issue before TRAI?

    Whether or not differential or discriminatory data pricing is permissible or not. For instance, in Airtel Zero package, for a few sites and applications data charge would be borne by app maker and no consumer. In Free Basics Platform, only certain sites were provided for free.

    Q. What’s the problem with that? To me, it looks like such a great idea. Something is better than nothing, right?

    It’s not such a great idea because

    1. It compartmentalizes internet into walled gardens, where some people will have access to whole internet, while others only to certain sites vetted by corporations.

    2. Eventually those people might come to think that Facebook is internet, it will hamper growth of internet and it’s open architecture.

    3. Internet is based on network economy and it will benefit only those few websites in walled garden.

    4. There are no free lunches in this world. This whole free thing is ultimately based on the data economy and people who sign up for these free things may not even be aware of what data and meta data they may be parting with.

    5. In the context of huge information asymmetry between ISPs and consumers, it’s absolutely essential for Govt to protect consumer interest.

    Add to these run of the mill points such as

    Internet giants could easily afford to participate in such programs, putting new players at a disadvantage.

    Q. What do supporters of such free programmes have to say about all this?

    1. Poor unconnected were getting to access some sites, they will lose access to those.

    2. Broadband penetration is abysmally low in India (ranking 141/165). It will help improve internet penetration.

    3. There are studies that confirm that giving access to a few sites make people make a move towards whole internet.

    4. Zero Ratings is a legitimate business practice. Even FCC (US version of TRAI) has not banned it but said it will review zero rating platforms on case by case basis.

    RebuttalThere are no independent studies. All such studies are done by academics paid for by corporate. Founder of WWW Tim Lee opposes such practices.

    Q. So what’s the way forward? How can broadband penetration be increased in India?

    1. Use Universal Service Obligation Fund (USOF) to give certain amount of free data to every consumer.

    2. ISPs can give free data say 250MB one time free without creating walled gardens to get people on board.

    3. Timely roll out of optical fibre and connection of all gram panchayats using Bharat Net project.

    Q. So is this all about net neutrality?

    1. No, discriminatory pricing is only a small but very important part of net neutrality.

    2. Other aspects include no blocking, no throttling, no filtering, no slowing down, no fast lanes.

    Net neutrality is a concept that says a public network should treat allcontent, sites, and platforms equally.

    Q. What’s government doing about those aspects of net neutrality?

    1. Govt. has promised on the floor of house to bring a comprehensive legislation covering all aspects of net neutrality.

    2. In this regard govt needs to protect interest of teeming millions who are yet to connect to internet. Success of digital India mission will depend on this.

    Remember ,The idea behind net neutrality is simple – treat all sites equally to give everyone a fair chance at growth, and reject the idea of monopolies.

    PS– I would strongly suggest everyone to read the explainer and story on net neutrality from the links given below. After that, you don’t need to read anything extra on net neutrality for exam purpose.

    https://www.civilsdaily.com/free-basics-is-it-digital-divide-among-people/

    Net Neutrality & The Debate Around It

  • gravitational waves detected? PM lauds india role. UPSC will surely lap it up!

    http://www.hindustantimes.com/hawkings-thrilled-with-gravitational-wave-discovery-pm-lauds-india-role/story-l3MDwatw92qwUMOy7GsaSN.html

  • RSTV | India’s World | Importance of TPP

    Context:  Trans Pacific Partnership (TPP ) was signed in NZ last week.

    Q. Give us a broad overview of TPP. ( names imp for prelims)

    1. The Trans-Pacific Partnership (TPP) is a trade agreement among twelve Pacific Rim countries which include

    4 ASEAN memebrs Malaysia, Singapore, Brunei ,Vietnam

    7 RCEP members  4 ASEAN above + Australia, New Zealand, Japan

    5 American countries Canada, Mexico, United States, Chile, Peru (3 from North and central America + 2 from South America)

    2. They represent 40% of world economy and 26% of global trade

    Q. What are the objectives of this deal?

    1. Stated objective is dismantling of tariff and non tariff barriers and thus boosting trade and prosperity.

    2. Unstated objective is to liberalize capital movement and make the world safe for transnational capital.

    3, Even more importantly it is sought to be projected as a model for future trade deal.

    Q. What are the geo strategic calculations behind this deal?

    1. US wants to retain its domination of global economy and Asia pacific.

    2. It’s part of US pivot to Asia or rebalancing as it was later called.

    Q. What is China’s response?

    1. Promoting its own trade deals like RCEP, regional comprehensive economic partnership and  FTAAP, free trade area in Asia Pacific, both of which seems to be going nowhere.

    2. On strategic side One Belt One road, OBOR

    Problem for Chian is that xinxiang is pivotal to overland project while south china sea and malacca strait are pivotal to marine project and china has major weaknesses at both places.

    Q. What are points of concern with regard to TPP?

    1. Short answer is investment ,ipr, labour and environmental standard which are much more stringent than WTO.

    2. They are in effect technical barriers to trade, so called non tariff barriers.

    3. IPR which are TRIPS plus will make ever greening of branded drugs possible and would lead to higher cost of medicines.

    4. Data exclusivity clause will make it even more difficult for generics to come into market.

    Q. You also talked about investment protection. What is this issue about investor state dispute settlement?

    Under this rule private sector can prosecute states for loss of profit because of govt policies. Very limited exemptions are available on grounds of public health, environment and public order.

    Similar provision is being negotiated in TTIP, Transatlantic Trade and investment Partnership and German judges have already issue declaration that this kind of arbitration is unacceptable.

    Q. What should be India’s response now?

    If we join TPP national treatment would help our pharma companies and ITES companies due to freedom of travel. visa issues will be sorted out.

    Theoretically it is easy to say we should have been there, watering things down, build greater relationships, be part of global value chains, extend our act east policy but the fact remains that we have not been able to digest WTO. We need deep reform in so many areas. We are not at all even at stage of thinking of joining.
    Reforms internally, build consensus around WTO, sign RCEP and Free trade deal with EU.

     

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