Abhimanu

Weekly current affairs Series

Week: II, April 2017

Abhimanu’s IAS Study Group Chandigarh

NATIONAL ECONOMIC AFFAIRS

Green Growth Equity Fund

India and the UK have announced the launch of an Early Market Engagement for the joint UK-India Fund, namely a Green Growth Equity Fund which aims to leverage private sector investment from the City of London to invest in green infrastructure projects in India.

About Green Growth Equity Fund:

The Government of India (through NIIF) and the UK government have committed to anchor-invest up to £120 million each in the joint Fund which aims to raise around £500m, and has the potential to unlock much more in future.

A secondary benefit will be to attract investors based in the City of London into the Fund and/or its investee companies.

The Fund will invest in mid to large-sized companies in the green infrastructure space in India. It will pursue a strategy of acquiring a mix of minority and majority stakes (when it is essential to align interests and professionalize governance).

The Fund will target gross returns in the 14-16% INR range, investing primarily in the following sectors: 1. Renewable energy; 2. Energy distribution/transmission; 3. Clean transportation, Water treatment, Waste management,; 4. Any other fledgling sub-sectors/ themes in the clean energy/environment space like energy storage/ fuel cells/ etc.

The Fund will be independently managed by a high-quality fund management team which will be selected based on its track record in sectors included; as well as capability to execute the proposed strategy. Management fees and arrangements will be competitive.

Investment strategy

The dominant investment strategy of GGEF would be aimed towards achieving predictable and stable returns for its investors. At the same time, in order to provide an upside kicker to the portfolio returns, the Fund would also invest a proportion of its portfolio in emerging businesses or businesses having exposure to market risks.

The various categories of investment opportunities which would be considered by the Fund, and the indicative allocation of the Fund’s investible corpus towards these, has been provided below:

Majority stakes at SPV level for projects, or to acquire and consolidate assets, which are operational for at least two years – [30-35%]

Minority stakes in mature renewable platforms for greenfield projects/ brownfield expansions/ purchase of stake from existing investors – [30-35%]

Power transmission – [10-15%]

Majority stakes in water treatment/ waste management platforms – [5-10%]

Majority/minority stakes in emerging businesses – [5-10%]

Pradhan Mantri Mudra Yojana (PMMY)

Loans extended under the Pradhan Mantri Mudra Yojana (PMMY) during 2016-17 have crossed the target of Rs. 1,80,000 crore for 2016-17.

Of this amount, Rs. 1,23,000 crore was lent by banks while non-banking institutions lent about Rs. 57,000 crore. Data compiled so far indicates that the number of borrowers this year were over 4 crore, of which over 70% were women borrowers.

About the Pradhan Mantri MUDRA Yojana (PMMY) scheme:

This scheme to provide loans to small businesses and micro institutions.

This scheme would intervene in providing finance to these micro institutions in three stages:

Shishu: Under the Shishu stage, MUDRA provides a loan up to RS.50, 000 to small businesses.

Kishor: Next is the Kishor stage. Under this stage, MUDRA provides loans of an amount ranging from RS.50, 000 up to Rs.5 lakh.

Tarun: Last stage of intervention is the Tarun stage. Under this stage, loans of amounts ranging from Rs.5 lakh to Rs.10 lakh are provided.

Objectives of the MUDRA Loan Yojana

To lay down policy guidelines to finance micro/small enterprises

To get all Micro Finance Institutions and entities registered and regulate the same.

To help small businesses grow and develop their enterprise further.

To assist lower income groups in setting up and developing their business.

To help set up responsible financial practices in order to prevent over borrowing for lower income entrepreneurs.

To help create easy access to finance for the unbanked and also help lower the cost of finance.

To give SC/ST preference in lending.

To regulate all Micro Finance Institutions dealing with manufacturing, service and trading.

Analysis:

Micro industries should be encouraged to go into the shoes of big companies because still large companies are responsible for major chunk of production and employment.

Normally as firms age, they employ more people. India is the exception. Even as firms become more than three decades old, they do not employ more people. A large portion of this peculiar Indian feature has to do with the fact that firms remain small in nature. Perhaps, policy measures create a perverse incentive for them to remain small. The main aim of policy must be to make them grow out of their sizes at birth.

Though small enterprises needs special attention, but the whole objective of this attention should be to watch them grow, not to let them remain small forever.

At present the non-profit micro financing institutes (MFI’s) are not able to provide enough support to small businesses. The commercial banks are also hesitant to provide funds to small and medium entrepreneurs. They avoid exposure to this particular segment because they consider it highly risky in nature with no performance history.

Government forms panel to study virtual currencies framework

To examine the existing framework for virtual currencies, the department of economic affairs in the Ministry of Finance has constituted an inter- disciplinary committee chaired by Special Secretary (Economic Affairs) with representatives from the departments of revenue and financial services and the ministries of home Affairs as well as electronics and Information Technology.

The committee will also include experts from the RBI, the central government’s think tank NITI Aayog and the country’s largest bank, State Bank of India.

About Virtual currencies:

Virtual currencies are digital currency or electronic money. They do not physically exist as coins or notes.

Although they can be used as a form of payment if another person is willing to accept them, they are not legal tender. The value of virtual currency can fluctuate significantly, they may not be accepted in many places and they are not guaranteed by any bank or government.

A virtual currency is created through encryption techniques.

There are various kinds, such as: bitcoin, litecoin, peercoin, namecoin, ether and primecoin. Among these, bitcoin is most famous.

In India, there are multiple bitcoin exchanges, bitcoin mining companies and portfolio management firms. One have the option to buy bitcoins from a website or through an app.

To buy, one can sign up with one of the websites such as Coinsecure, Unocoin, BTCXIndia or Zebpay.

Some bitcoin exchanges allow to buy e-commerce vouchers, movie tickets and even make bill payments using this currency.

Bitcoins or any other virtual currency is not regulated in India. Besides regulatory concerns, there have been cases of fraud as well in other countries.

Moreover, bitcoin prices have been volatile. In September 2016, one bitcoin was worth Rs40,000. On 2 February, it was Rs70,000. This is possibly because of demonetisation move of the government.

BHIM-Aadhaar platform

Prime Minister has launched BHIM-Aadhaar platform from Nagpur.

BHIM-Aadhaar platform is the merchant interface of the BHIM App that has been launched for making digital payments using the Aadhaar platform.

This platform will help people to pay digitally using their biometric data like thumb imprint on a merchant’s biometric enabled device like a smart phone or a biometric reader.

The App needs to be installed only by merchants and they need to connect their smartphones to the biometric scan machine to accept the payments from customers.

The customers who want to pay using this app needs to link Aadhaar number and biometic fingerprint to complete a transaction.

About BHIM:

BHIM is a digital payments solution app based on the Unified Payments Interface (UPI) from the National Payments Corporation of India (NPCI), the umbrella organisation for all retail payments systems in India. If anyone who signed up for UPI-based payments in his/her bank account, which is also linked to mobile phone number, be able to use the BHIM app to carry out digital transactions.

BHIM will help to send and receive money to other UPI accounts or addresses. One can also send money via IFSC (Indian Financial System Code) and MMID (Mobile Money Identifier) Code to users who don’t have a UPI-based bank account. There’s also the option of creating your own QR (Quick Response) code for a fixed amount of money, which the merchant can scan to make the deduction.

BHIM is UPI-based, and thus linked directly to a bank account. All the payee needs is a bank account. If this account is UPI activated, one can just ask for the payee’s VPA or virtual payment address, and make the payment to that account.

Otherwise, there’s the option of IFSC or MMID for sending or receiving money. The advantage is there’s no need to remember an account number, or to share it with anyone. The VPA is all that is needed. Up to Rs 10,000 can be sent per transaction, and up to Rs 20,000 in any 24 hours.

NATIONAL POLITY

Centre files curative plea on AFSPA

The government has asked the Supreme Court to urgently reconsider its July 2016 verdict which ripped open the cloak of immunity and secrecy provided by the Armed Forces (Special Powers) Act of 1958 (AFSPA) to security forces for deaths caused during encounters in disturbed areas.

The Supreme Court had held that “there is no concept of absolute immunity from trial by a criminal court” if an Army man has committed an offence.

The judgment had held that every death caused by security forces in a disturbed area, even if the victim was a dreaded criminal or a militant or a terrorist or an insurgent, should be thoroughly inquired into to address any allegation of use of excessive or retaliatory force.

The judgment came on a plea by hundreds of families in Manipur for a probe by Special Investigation Team.

About AFSPA: Armed Forces (Special Powers) Act, 1958

The Armed Forces (Special Powers) Act was enacted in 1958 to bring under control what the government of India considered ‘disturbed’ areas.

As of now, according to the home ministry, six more states come under the ambit of this law under various conditions.

This is applicable in Assam, Nagaland, Manipur (except the Imphal municipal area), Arunachal Pradesh (only the Tirap, Changlang and Longding districts plus a 20-km belt bordering Assam), Meghalaya (confined to a 20-km belt bordering Assam) and Jammu and Kashmir.

Section (3) of the AFSPA Act empowers the governor of the state or Union territory to issue an official notification on The Gazette of India, following which the centre has the authority to send in armed forces for civilian aid. It is still unclear whether the governor has to prompt the centre to send in the army or whether the centre on its own sends in troops.

Once declared ‘disturbed’, the region has to maintain status quo for a minimum of three months, according to The Disturbed Areas (Special Courts) Act, 1976.

The state governments, as in Tripura’s case, can suggest whether the Act is required to be enforced or not. But under Section (3) of the Act, their opinion can still be overruled by the governor or the centre.

This act is not uniform in nature. Originally, it came into being as an ordinance in 1958 and within months was repealed and passed as an Act. But, this was meant only for Assam and Manipur, where there was insurgency by Naga militants. But after the northeastern states were reorganized in 1971, the creation of new states (some of them union territories originally) like Manipur, Tripura, Meghalaya, Mizoram and Arunachal Pradesh paved the way for the AFSPA Act to be amended, so that it could be applied to each of them. They may contain different sections as applicable to the situation in each state.

New Taxi Policy Guidelines

The safety measures, recommended by the Ministry of Women and Child Development, concerning safety of women commuters availing of cab services have been included in the new Taxi Policy Guidelines.

The recommendations come in the background of numerous cases of sexual harassment of women in cabs being reported.

Recommendations of WCD Ministry included in the New Taxi Policy Guidelines:

The taxis should be mandatorily fitted with GPS panic devices.

For the safety of women and child passengers, the central locking system in the taxis should not be allowed.

The driver's identification along with the photo and registration number of the vehicle should also be prominently displayed in the taxi.

Violation of the stipulated rules by the taxi operators/drivers should be strictly dealt in accordance with law.

Sharing of seat should be subject to willingness of passengers.

Lok Adalat

The Second National Lok Adalat for 2017, conducted on April 8, throughout the country from taluk level courts to High Courts, has settled nearly 6.6 lakh cases.

Out of this, 3.68 lakh cases have been reduced from court pendency and about 2.92 lakh cases were settled even before they could be filed in courts.

The cases ranged from matrimonial disputes, partition suits, civil matters, cheque bounce cases, motor accident claims, revenue disputes pending in courts, criminal compoundable cases and service matters pertaining to pension, retrial benefits, etc.

What is Lok Adalat?

NALSA(National Legal Services Authority) along with other Legal Services Institutions conducts Lok Adalats.

Lok Adalat is one of the alternative dispute redressal mechanisms, it is a forum where disputes/cases pending in the court of law or at pre-litigation stage are settled/ compromised amicably.

Lok Adalats have been given statutory status under the Legal Services Authorities Act, 1987. Under the said Act, the award (decision) made by the Lok Adalats is deemed to be a decree of a civil court and is final and binding on all parties and no appeal against such an award lies before any court of law.

If the parties are not satisfied with the award of the Lok Adalat though there is no provision for an appeal against such an award, but they are free to initiate litigation by approaching the court of appropriate jurisdiction by filing a case by following the required procedure, in exercise of their right to litigate.

Levels and Composition of Lok Adalats:

At the State Authority Level - The Member Secretary of the State Legal Services Authority organizing the Lok Adalat would constitute benches of the Lok Adalat, each bench comprising of a sitting or retired judge of the High Court or a sitting or retired judicial officer and any one or both of- a member from the legal profession; a social worker engaged in the upliftment of the weaker sections and interested in the implementation of legal services schemes or programmes.

At High Court Level -The Secretary of the High Court Legal Services Committee would constitute benches of the Lok Adalat, each bench comprising of a sitting or retired judge of the High Court and any one or both of- a member from the legal profession; a social worker engaged in the upliftment of the weaker sections and interested in the implementation of legal services schemes or programmes.

At District Level -The Secretary of the District Legal Services Authority organizing the Lok Adalat would constitute benches of the Lok Adalat, each bench comprising of a sitting or retired judicial officer and any one or both of either a member from the legal profession; and/or a social worker engaged in the upliftment of the weaker sections and interested in the implementation of legal services schemes or programmes or a person engaged in para-legal activities of the area, preferably a woman.

At Taluk Level -The Secretary of the Taluk Legal Services Committee organizing the Lok Adalat would constitute benches of the Lok Adalat, each bench comprising of a sitting or retired judicial officer and any one or both of either a member from the legal profession; and/or a social worker engaged in the upliftment of the weaker sections and interested in the implementation of legal services schemes or programmes or a person engaged in para-legal activities of the area, preferably a woman.

National Lok Adalat- National Level Lok Adalats are held for at regular intervals where on a single day Lok Adalats are held throughout the country, in all the courts right from the Supreme Court till the Taluk Levels wherein cases are disposed off in huge numbers. From February 2015, National Lok Adalats are being held on a specific subject matter every month.

Permanent Lok Adalat - The other type of Lok Adalat is the Permanent Lok Adalat, organized under Section 22-B of The Legal Services Authorities Act, 1987. Permanent Lok Adalats have been set up as permanent bodies with a Chairman and two members for providing compulsory pre-litigative mechanism for conciliation and settlement of cases relating to Public Utility Services like transport, postal, telegraph etc. Here, even if

the parties fail to reach to a settlement, the Permanent Lok Adalat gets jurisdiction to decide the dispute, provided, the dispute does not relate to any offence. Further, the Award of the Permanent Lok Adalat is final and binding on all the parties. The jurisdiction of the Permanent Lok Adalats is upto Rs. Ten Lakhs.

Operation Meghdoot

The Siachen brigade of the Indian Army celebrated the 33rd anniversary of success of Operation Meghdoot to recapture the Bilafond La Pass from Pakistani forces in 1984 in Nubra valley.

About Operation Meghdoot:

Meghaduta is the code-name of the military operation launched by India to gain control over the ridges adjacent to the Siachen glacier.

This operation was launched on 13 April 1984, consisted of Indian air force helicopters carrying assault troops to the area to obtain control of key ridges and passes.

Pakistan had also planned Operation Ababeel to capture the same ridges, but the Indians came to know of it and moved first.

Even though it has been presented at times as the first military incursion into the area, there had been military activity prior to this. The Indian air force first landed helicopters on the glacier in 1978

The Indian army moved a large number of troops on foot to the base of the Siachen glacier in 1983, and they had been trained for several weeks to be able to fight there .

The initial plan of this operation was to deploy troops to three passes on the Saltoro range that controlled access to the Siachen glacier, from north to south, Sia La, Bilafond La and Gyong. However, after these positions were secured, the two armies began to compete to gain higher ground nearby.

The 71 km long glacier runs diagonally from top left at Indira Col to its snout near Dzingrulma, the last Indian military camp. The Indian Army positions run along the Saltoro ridge, west of the glacier, along a line connecting Indira Col, Sia La, Bilafond La and Gyong La.

The Pakistan Army has camps at Goma and Gyari and access over the Baltoro glacier to the Conway Saddle and glaciers in the southwestern part. The area controlled by China is located north of the ridge from K2 to the Teram Shehr plateau.

The belief that if one side did not capture a height then the other would, led to the militarization of the entire ridge-line. This rapidly increased the number of troops required by the Indian army to hold the commanding positions, and made the logistics of the operation even more complex.

Petrol, diesel prices to change daily

From May 1, petrol and diesel prices will change every day in sync with international rates, much like what happens in most advanced markets.

State-owned fuel retailers Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), which own over 95 per cent of nearly 58,000 petrol pumps in the country, will launch a pilot for daily price revision in five select cities from May 1 and gradually extend it to all over the country.

A pilot for daily revision of petrol and diesel price will be first implemented in Puducherry, Vizag in Andhra Pradesh, Udaipur in Rajasthan, Jamshedpur in Jharkhand and Chandigarh.

State fuel retailers currently revise rates on 1st and 16th of every month based on average international price of the fuel in the preceding fortnight and currency exchange rate.

Analysis:

Daily price change will remove the big leaps in rates that need to be affected at the end of the fortnight and consumer will be more aligned to market dynamics.

While petrol price was freed from government control in June 2010, diesel rates were deregulated in October 2014. Technically, oil companies have freedom to revise rates but often they have been guided by political considerations.

With daily changes, which are unlikely to more than few paise per litre, the political pressures for not

revising rates particularly when they are to be hiked will go, sources said.

This will help the OMCs(Oil marketing companies) to get accurate price reflecting international oil prices and rupee-dollar fluctuations, and will also enable them to not make big cuts or surge in prices which are often not taken well by consumers as well as becomes a political issue.

If there is heightened volatility in global markets due to geopolitical developments, it could get reflected in domestic retail prices too. Therefore, companies are doing the right thing in testing the model in pilot projects to see how its impact and consumer response. In the medium- to long-term, daily price revision may be a good idea as is practised elsewhere.

Besides, global fuel prices and currency exchange rate, central and state taxes account for a major part of the fuel prices. It accounts for half of retail petrol price and 46% of retail diesel price. The central government collected Rs64,509 crore from petrol as excise duty in 2016-17 up to end-February, 20% more than what was collected in the whole of FY16. Excise receipts from diesel jumped 36% in the same period to Rs1.37 trillion.

In many countries, auto-fuel prices move in sync with the price of crude oil. Now, state-run fuel retailers revise prices on the 1st and 15th of every month based on average international price of crude in the preceding fortnight and the currency exchange rate.

MoU Signed Between NSFDC & Development Commissioner (Handlooms)

National Scheduled Castes Finance and Development Corporation (NSFDC) under Ministry of Social Justice and Empowerment and Development Commissioner (Handlooms) under Ministry of Textiles have signed a Memorandum of Understanding (MoU).

The objective of signing this MoU is to help Scheduled Caste weavers and their families by promoting production and marketing of high value quality Handlooms products at Block level Cluster in various States like Gujarat, Maharashtra, Rajasthan, Odisha etc.

Asper the MoU, signing parties shall popularize the schemes of Handlooms amongst the SC weavers through Awareness Programmes and advertisements in electronic/print media in SC weavers concentrated areas.

They shall collaborate for capacity building including skill upgradation and economic development of SC weavers and their families for achieving the desired outcome.

Exhibitions/Fairs shall be organized by both the parties for providing marketing assistance to SC weavers for enhancing their earnings.

About NSFDC:

NSFDC was setup by the Govt. of India on february 08,1989 with the name National Scheduled Castes and Scheduled Tribes Finance and Development Corporation (NSFDC) .

It was incorporated as a fully owned Government of India Company under Section 8 of the Companies Act, 2013 .

It has been assigned the task for financing, facilitating and mobilizing funds for the economic empowerment of persons living below Double of the Poverty Line (DPL).

It provides financial assistance for income generating schemes for the target group through state Channelizing Agencies (SCAs) which are nominated by respective State/UT Government.

This is managed by a Board of Directors with representation from Central Government, State Scheduled Castes Development Corporations, Financial Institutions and non-official members representing Scheduled Castes.

Analysis:

India has the world’s largest number of handloom weavers and an extremely rich heritage of handloom products. Until only a few decades ago, India had the most diverse cotton varieties, providing the most suitable raw material for handloom weaving.

But, India has not been able to ensure sustainable and satisfactory livelihoods for handloom weavers. The grim reality today is that an overwhelming majority of handloom weavers are living in poverty, while many others have left the occupation based on intricate skills to toil as construction workers and rickshaw pullers. Several have also migrated out of areas earlier known as famous handloom centres.

Raw material base of the handloom industry – several region-specific cotton varieties suitable for handloom weaving – has been destroyed. Cotton cultivation is now dominated by American cotton varieties not suitable for handlooms and, more recently, by the problematic genetically modified BT cotton. As many natural forests have been destroyed and/or replaced by monoculture plantations, the potential of sericulture to support silk handlooms has also reduced.

In the WTO trade regime of very low tariffs, indiscriminate imports of mechanised imitations of handloom products have increased rapidly, taking away the market for original handloom weavers.

Thus the crucial areas of raw material supply and marketing are increasingly threatened. The internal structure of the industry has also seen changes which have increased the problems of small-scale, independent weavers who complain that the benefits of government schemes do not reach them at all.

Also, the gross inadequacy of government efforts to help handloom weavers is increasingly visible. The large-scale violation of its own laws to protect handlooms has been ignored by governments obsessed only by production targets and caring little for the protection of livelihoods. The framework of government policies is also very limited. It doesn’t care at all for the loss of precious indigenous varieties of cotton crop.

To ensure the sustainable progress of handlooms, several stages of the work, intricately related to each other, need to be protected. There is the need to grow cotton varieties suitable for handloom weaving in different areas, to ensure decentralised spinning of this cotton and for tying up various other ancillary works.

Similarly in the case of silk handlooms, there is need to link up sericulture, ancillary works and handloom weaving.

Due to the widely perceived need to check greenhouse gas emissions, the case for handloom cloth is becoming stronger by the day. If handloom cloth can be linked closely to organic cultivation of non-GM cotton, its strength as eco-friendly cloth can become much stronger. This is going to be a big asset in the days to come.

Kudankulam Nuclear power plant

India has taken over full operational control of Unit 1 of the Kudankulam Nuclear Power Plant (KKNPP). An agreement was signed in this regard recently.

With the deal, the Russian and the Indian sides have confirmed fulfilment of all warranty terms and obligations of the contractor (ASE Group of Companies) for the construction of Unit 1.

About Kudankulam Nuclear Power Plant:

When then Prime Minister Rajiv Gandhi and Soviet President Mikhail Gorbachev signed the Kudankulam nuclear agreement in 1988, it marked the beginning of a promise of nuclear-powered energy self-sufficiency for the country. The 1988 agreement was initially for the setting up of two nuclear reactors in Tirunelveli.

However, the dissolution of the Soviet Union itself soon after the agreement was signed placed a stumbling block before it, and the project was revived only after a decade.

In 2000, construction work for the Kudankulam Nuclear Power Plant (KKNPP) began in Tamil Nadu.

In 2004, a port was constructed for transporting raw materials to the plant. Four years later, in 2008, KKNPP decided to set up four more reactors at the plant. The first nuclear power unit was scheduled to start in 2009. It began operations in 2011.

The first unit of the nuclear power plant reached full capacity generation of 1000 MW in 2014, of which Tamil Nadu’s share of power is 465 MW. The share of nuclear power in India to the country’s energy mix remains low, approximately four per cent of the electricity production share in 2015, according to the International Atomic Energy Agency (IAEA). The country currently has 21 operational nuclear power reactors.

Kudankulam is the highest capacity generating nuclear power plant in India. Beyond power generation, the project is also seen as a symbol of maintaining cordial relations between India and Russia.

Mahatma Gandhi Pravasi Suraksha Yojana

The Union Cabinet has approved closure of the Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) which was set up in 2012 to address the social security-related issues of the Emigration Check Required (ECR)-category workers going abroad for employment to ECR countries.

The subscription under the MGPSY was very low and no new subscription was received for more than a year.

The objective of MGPSY was to encourage and enable the overseas Indian workers by giving government contribution to:

Save for their Return and Resettlement (R&R).

Save for their old age.

Obtain a Life Insurance cover against natural death during the period of coverage.

The government contribution available under the MGPSY is for a period of five years or till the return of subscribed worker back to India, whichever is earlier.

The main attractions of MGPSY were:

Government contribution of Rs.1,000 per annum in line with Swavalamban platform for all MGPSY subscriber who save between Rs.1,000 and Rs.12,000 per year in NPS-Lite.

An additional government contribution of Rs.1,000 per annum by MOIA for the overseas Indian women workers who save between Rs.1,000 to Rs.12,000 per year in NPS-Lite.

A special government contribution of Rs.900 by MOIA towards Return and Resettlement (R&R) of the overseas Indian workers who save Rs.4,000 or more per annum.

Motor Vehicle Amendment Bill

The Lok Sabha has passed the Motor Vehicles (Amendment) Bill, 2016. The Bill amends the Motor Vehicles Act, 1988 to address issues such as third party insurance, regulation of taxi aggregators, and road safety.

Highlights of the Bill

The Bill amends the Motor Vehicles Act, 1988 to address issues such as third party insurance, regulation of taxi aggregators, and road safety.

Under the Act, the liability of the third party insurer for motor vehicle accidents is unlimited. The Bill caps the maximum liability for third party insurance in case of a motor accident at Rs 10 lakh in case of death and at five lakh rupees in case of grievous injury.

The Bill provides for a Motor Vehicle Accident Fund which would provide compulsory insurance cover to all road users in India for certain types of accidents.

The Bill defines taxi aggregators, guidelines for which will be determined by the central government.

The Bill also provides for: (i) amending the existing categories of driver licensing, (ii) recall of vehicles in case of defects, (iii) protection of good samaritans from any civil or criminal action, and (iv) increase of penalties for several offences under the 1988 Act.

Analysis:

The Bill caps the maximum liability for third party insurance, but does not cap the compensation amount that courts can award. In cases where courts award compensation higher than the maximum liability amount, it is unclear who will pay the remaining amount.

Under the Act, compensation for hit and run victims comes from a Solatium Fund. The Bill creates a new Motor Vehicle Accident Fund in addition. With a Fund already existing to provide compensation for hit and run accidents, the purpose of the new Accident Fund is unclear.

State governments will issue licenses to taxi aggregators as per central government guidelines. Currently, state governments determine guidelines for plying of taxis. There could be cases where state taxi guidelines are at variance with the central guidelines on aggregators.

While the penalties for contravening provisions of the proposed scheme on interim relief to accident victims are specified in the Bill, the offences that would warrant such penalties have not been specified. It may be argued that imposing penalties without knowing the nature of the offences is unreasonable.

The Bill does not address several issues around road safety that have been highlighted by other committees such as: (i) creating road safety agencies, and (ii) improving road design and engineering.

Inter-State Council

The Union Home Minister, Shri Rajnath Singh chaired the 11th Standing Committee meeting of the Inter-State Council.

The council was attended by Chief Ministers of various states.

About interstate council:

The Constitution of India clearly defines spheres of authority between the Union and the States to be exercised in the fields assigned to them.

Consistent with this, the Constitution has made an elaborate distribution of powers between the Union and the States in the areas of legislative, administrative and financial powers.

The subject of Legislative Power has, accordingly, been classified into three Lists – Union List (List I), State List (List II) and the Concurrent List (List III) in the Seventh Schedule of the Constitution. Residuary powers of legislation have been vested in Parliament.

The Union Government has, from time to time, taken steps to look into the contentious issues between the Centre and States in the areas of distribution of powers.

The Union Government, constituted a Commission in 1988 under the Chairmanship of Justice R.S. Sarkaria to review the working of the existing arrangements between the Union and the States.

One of the important recommendations of Sarkaria Commission was for establishing a permanent Inter-State Council as an independent national forum for consultation with a mandate well defined in accordance with Article 263 of the Constitution of India.

Pursuant to the recommendation, The Inter-State-Council was set up under Article 263 of the Constitution of India vide Presidential Order dated 28.5.1990

Composition:

The Inter-State Council was established under Article 263 of the Constitution of India through a Presidential Order dated 28th May 1990.( [size:1MB] )

The Council consists of:-

Prime Minister – Chairman

Chief Ministers of all States – Members

Chief Ministers of Union Territories having a Legislative Assembly and Administrators of UTs not having a Legislative Assembly – Members

Six Ministers of Cabinet rank in the Union Council of Ministers to be nominated by the Prime Minister – Members

The Particularly Vulnerable Tribal Groups of India — Privileges and

Predicaments

A recent Anthropological Survey of India (AnSI) publication has brought to the fore startling revelations about the Particularly Vulnerable Tribal Groups (PVTGs) in the country.

The publication provides one of the most detailed descriptions of PVTGs with each of the tribes being discussed in separate chapters.

About PVTGs:

PVTGs are more vulnerable among the tribal groups. Due to this factor, more developed and assertive tribal groups take a major chunk of the tribal development funds, because of which PVTGs need more funds directed for their development.

In this context, in 1975, the Government of India initiated to identify the most vulnerable tribal groups as a separate category called PVTGs and declared 52 such groups, while in 1993 an additional 23 groups were added to the category,making it a total of 75 PVTGs out of 705 Scheduled Tribes, spread over 17 states and one Union Territory(UT), in the country (2011 census).

Highlights of the survey:

According to the survey, of the 75 PVTGs, base line surveys exists for about 40 groups, even after declaring them as PVTGs.

Base line surveys are done to precisely identify the PVTG families, their habitat and socio-economic status, so that development initiatives are implemented for these communities, based on the facts and figures.

Among the 75 listed PVTG’s the highest number are found in Odisha (13), followed by Andhra Pradesh (12), Bihar including Jharkhand (9) Madhya Pradesh including Chhattisgarh (7) Tamil Nadu (6) Kerala and Gujarat having five groups each.

The remaining PVTGs live in West Bengal (3) Maharashtra (3), two each in Karnataka and Uttarakhand and one each in Rajasthan, Tripura and Manipur. All the four tribal groups in Andamans, and one in Nicobar Islands, are recognised as PVTGs.

Some of the PVTGs are distributed in more than one State. The Birhor are recognised as a PVTG in four States, while 10 other group are PVTG in two States, namely the Sahariya, Kurumba, Koraga, Korwa, JenuKuruba, Kattunayakan, Katkari/Kathodi, Kharia, Kolam, and Lodha. Thus, the number of the PVTGs at the national level would be 63.

Regional and State-specific variations in welfare schemes for PVTGs has also been highlighted. While Odisha has established exclusive micro-projects for the PVTGs, there are none such in for the five PVTGs in Gujarat.

In Tamil Nadu, development schemes are being monitored through the Tribal Research Centre, Ooty, and implemented by the State government. However, in Karnataka, all affairs of two the PVTGs are handled by the Social Welfare Department, which extends some schemes as per their knowledge, barely receiving any professional advice. Only recently, the Karnataka Tribal Research Centre was been established at Mysore while many States did so decades ago.

In some cases, a PVTG receives benefits only in a few blocks in a district, while the same group is deprived in adjacent blocks. The reason is that micro-projects extend benefits only within their jurisdiction.

There is a huge variation in the number of PVTGs ranging from a few individuals as in case of Great Andamanese, Onge and Sentinelese and about a little more than a thousand people as in the case of Toda of Nilgiris. Although PVTGs are slowly witnessing decadal increase in their population, quite a few still face stagnation such as the Birhor in central India. Some are declining like the Onge and Andamanese.

Smallest population size among the PVTGs are the Senteneles (as per the last contact effort on March 9, 2005, groups of 32 and 13 persons were sighted at different places). They still shy away from others. The Great Andamanese (57 persons) and the Onge (107 persons in 2012 as per Andaman Adim Janjati Vikas Samiti) are the dwindling populations. In main land, the Toto of West Bengal (314 families with 1,387 persons as per 2011 census) and the Toda of Tamil Nadu (1,608, inclusive of 238 Christian Todas as per TRC, Udagamandalam [Ooty], 2011)) have population less than 2000 persons. The Saharia people of Madhya Pradesh and Rajasthan are the largest among the PVTGs with population more than 4 lakhs.

Literacy rate among the PVTGs has gone up significantly over the past. From a single digit literacy rate, the figures have increased to 30 to 40 % in many of the PVTGs. However, as is the case with entire India, female literacy rate is still considerably lower compared to male counterpart.

There is considerable increase in the age of marriage among PVTGs. The incidence of girl child being married while still being a minor, among these tribes has been decreasing.

Sharing of Teesta water

Sharing the waters of the Teesta River is perhaps the most contentious issue between, India and Bangladesh.

The river covers nearly the entire floodplains of Sikkim, while draining 2,800 sq km of Bangladesh, governing the lives of hundreds of thousands of people.

For West Bengal, Teesta is equally important, considered the lifeline of half-a-dozen districts in North Bengal.

Bangladesh has sought an “equitable” distribution of Teesta waters from India, on the lines of the Ganga Water Treaty of 1996, but to no avail.

Analysis:

Following a half-hearted deal in 1983, when nearly equal division of water was proposed, the countries hit a roadblock. The transient agreement could not be implemented.

Teesta River has a mean annual flow of approximately 60 billion cubic metre (BCM). A significant amount of this water flows during the wet season, between June and September. The importance of the flow and the seasonal variation of this river is felt during the lean season (from October to April/May) as the average flow is about 500 million cubic metre (MCM) per month. Consequently, there are floods during monsoons and droughts during the dry periods.

The West Bengal Chief Minister opposed an arrangement in 2011, by which India would get 42.5% and Bangladesh 37.5% of the water during the lean season, and the plan was shelved.

One solution of this problem can be construction of giant artificial reservoirs, where the monsoon water can be stored for the lean season. The reservoirs need to be built in India as the country has some mountain-induced sites favourable to hosting dams with reservoirs, unlike Bangladesh.

ASCI lays down rules on celebrity endorsements

Advertising Standards Council of India (ASCI), the ad industry’s self-regulatory body, has released a set of guidelines for celebrity endorsements that bring personalities, including doctors, authors, activists and educationists, into the celebrity category.

The guidelines aim to clamp down on random or exaggerated claims made by celebrity advertising.

The objective of this move is to protect consumer interest while encouraging celebrities and advertisers to refrain from endorsing misleading advertisements, especially of products or services which can cause serious financial loss or physical harm.

Important guidelines:

Endorsements or representation of opinions or preference of celebrities must reflect genuine, reasonably current, views of the individuals. Also, making representations must be based on adequate information about or experience with the product or service being advertised.

It is celebrities duties to ensure that all descriptions, claims and comparisons made in ads they appear in are capable of being objectively ascertained and should not mislead or appear deceptive.

All ads featuring celebrities should ensure that they do not violate any ASCI code,adding that it is the duty of the advertiser and agency to make sure the celebrity they wish to engage with is made aware of the guidelines.

Celebrities are also banned from endorsing “any advertisement of a product or treatment or remedy that is prohibited for advertising” under the Drugs & Magic Remedies (Objectionable Advertisements) Act and the Drugs & Cosmetic Act”.

Celebrities are also banned from appearing in any ad in which “a product which by law requires a health warning is injurious to health” on its packaging or advertisement.

Analysis:

Celebrities have been deployed by marketers to add credibility to their brand offering. These celebrities, however, have a huge responsibility to ensure that the products they endorse or feature in, are true to the claims made in those advertising messages. The guidelines will help in ensuring that claims made in advertising are not misleading, false or go unsubstantiated

Magical charms and pseudoscience-based products that are the staples of teleshopping channels will almost certainly fall afoul of ASCI’s guidelines. Some of these products are promoted by has-been Bollywood actors and TV actors. Most of these ads violate the Drugs and Magic Remedies (Objectionable Advertisements) Act, which prohibits the promotion of a charm of any kind alleged to possess miraculous powers for or in the diagnosis, cure, mitigation, treatment or prevention of any disease in human beings. The Act also prohibits the promotion of products that claim to cure baldness and change skin colour.

INTETRNATIONAL AFFAIRS

BIMSTEC power grid

The Cabinet approved a proposal for signing an agreement to establish electricity grid interconnection among BIMSTEC countries.

Significance of this MoU:

The agreement will provide a broad framework for the parties to cooperate towards the implementation of grid interconnections for the trade in electricity with a view to promoting rational and optimal power transmission in the BIMSTEC region.

This MoU will facilitate the optimisation of using the energy resources in the region for mutual benefits on non-discriminatory basis subject to laws, rules and regulations of the respective parties.

It will also promote efficient, economic and secure operation of power system needed through the development of regional electricity networks.

It will also facilitate optimisation of capital investment for generation capacity addition across the region and power exchange through cross-border interconnections.

About BIMSTEC:

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional organization comprising seven Member States lying in the littoral and adjacent areas of the Bay of Bengal constituting a contiguous regional unity.

This sub-regional organization came into being on 6 June 1997 through the Bangkok Declaration. It constitutes seven Member States: five deriving from South Asia, including Bangladesh, Bhutan, India, Nepal, Sri Lanka, and two from Southeast Asia, including Myanmar and Thailand.

Initially, the economic bloc was formed with four Member States with the acronym 'BIST-EC' (Bangladesh, India, Sri Lanka and Thailand Economic Cooperation).

Following the inclusion of Myanmar on 22 December 1997 during a special Ministerial Meeting in Bangkok, the Group was renamed 'BIMST-EC' (Bangladesh, India, Myanmar, Sri Lanka and Thailand Economic Cooperation).

With the admission of Nepal and Bhutan at the 6th Ministerial Meeting (February 2004, Thailand), the name of the grouping was changed to 'Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation' (BIMSTEC).

The regional group constitutes a bridge between South and South East Asia and represents a reinforcement of relations among these countries.

BIMSTEC has also established a platform for intra-regional cooperation between SAARC and ASEAN members.

The BIMSTEC region is home to around 1.5 billion people which constitute around 22% of the global population with a combined gross domestic product (GDP) of 2.7 trillion economy.

In the last five years, BIMSTEC Member States have been able to sustain an average 6.5% economic growth trajectory despite global financial meltdown.

Unlike many other regional groupings, BIMSTEC is a sector-driven cooperative organization. Starting with six sectors—including trade, technology, energy, transport, tourism and fisheries—for sectoral cooperation in the late 1997, it expanded to embrace nine more sectors—including agriculture, public health, poverty alleviation, counter-terrorism, environment, culture, people to people contact and climate change—in 2008.

Objectives of BIMSTEC:

To create an enabling environment for rapid economic development through identification and implementation of specific cooperation projects in the sectors of trade, investment and industry, technology, human recourse development, tourism, agriculture, energy, and infrastructure and transportation.

To accelerate the economic growth and social progress in the sub-region through joint endeavors in a spirit of equality and partnership.

To promote active collaboration and mutual assistance on matters of common interest in the economic, social, technical and scientific fields.

To provide assistance to each other in the form of training and research facilities in the educational, professional and technical spheres.

To cooperate more effectively in joint efforts that are supportive of and complementary to national development plans of Member States which result in tangible benefits to the people in raising their living standards, including generating employment and improving transportation and communication infrastructure.

To maintain close and beneficial cooperation with existing international and regional organizations with similar aims and purposes.

To cooperate in projects that can be dealt with most productively on a sub-regional basis and make best use of available synergies among BIMSTEC member countries.

Travel and Tourism Competitiveness Index 2017

World economic forum has released travel and tourism competitiveness index, 2017. In this ranking, India is one of the countries that improved the most as it gained 12 places in Asia, but lagged behind its other Asian peers like Japan and China.

Highlights:

In the global ranking Spain, France and Germany were ranked at the top three positions, making them the most tourism friendly economies.

Traditional strong travel and tourism destinations, including Japan (4th), the United Kingdom (5th), the United States (6th), Australia (7th), Italy (8th), Canada (9th) and Switzerland (10th), have also made it to the top 10.

While advanced economies still hold the top slots, 12 of the top 15 most improved countries are emerging markets.

India has moved 12 places up in this ranking from 52nd to 40th position.

India’s ranking in the Travel and Tourism Competitive Index (TTCI) of World Economic Forum moved from 65rd position to 52nd position in 2015. Now India has moved up by another 12 positions and ranked at 40th position. In all, in last three years India has cumulatively improved its ranking by 25 places which is a significant achievement.

India continues to charm international tourists with its vast cultural and natural resources with a ranking of 9th and 24th respectively which are the USP’s of Indian Tourism product. In terms of price competitiveness advantage, India ranked 10th.

In terms of International openness, India is ranked 55th, up by 14 places. This has been possible through stronger visa policies. Implementing both visas on arrival and e-visas, has enabled India to rise through the ranks.

About Index:

The Travel and Tourism Competitiveness Index (TTCI) is produced by the World Economic Forum (WEF) and measures the factors and policies that make a country a viable place to invest within the Travel and Tourism sector.

The TTCI provides a means to measure a country’s performance, and utilizes three sub-indices and their component parts to represent the overall quality, future potential and long-term sustainability of the tourism sector within each country assessed.

The Travel and Tourism Competitiveness Index (TTCI) analyzed 139 countries and scored each according to three sub-indices: Regulatory Framework; Business Environment and Infrastructure; and Human, Cultural and Natural Resources. These sub-indices are, in turn, composed of fourteen “pillars” of Travel and Tourism Competitiveness.

TTCI is used as a sustainability indicator in calculating the status of the Travel and Tourism goal.

SCIENCE AND TECHNOLOGY

Crime and Criminal Tracking Network and Systems Project

The Cabinet Committee on Economic Affairs has approved the proposal of the Ministry of Home Affairs for extension of the implementation phase of the Crime and Criminals Tracking Network and Systems (CCTNS) Project for another year beyond 31st March 2017.

The extension would help in achieving the remaining objectives of the project comprehensively. About CCTNS project

CCTNS is a Mission Mode Project under the National e-Governance Pan of Govt of India.

CCTNS aims at creating a comprehensive and integrated system for enhancing the efficiency and effectiveness of policing through adopting of principle of e-Governance and creation of a nationwide networking infrastructure for evolution of IT-enabled-state-of-the-art tracking system around 'Investigation of crime and detection of criminals'.

An allocation of Rs. 2000 crores has been made for CCTNS Project. Cabinet Committee on Economic Affairs (CCEA) has approved the project on 19.06.2009.

Objectives of the Scheme:

Make the Police functioning citizen friendly and more transparent by automating the functioning of Police Stations.

Improve delivery of citizen-centric services through effective usage of ICT.

Provide the Investigating Officers of the Civil Police with tools, technology and information to facilitate investigation of crime and detection of criminals.

Improve Police functioning in various other areas such as Law and Order, Traffic Management etc.

Facilitate Interaction and sharing of Information among Police Stations, Districts, State/UT headquarters and other Police Agencies.

Assist senior Police Officers in better management of Police Force

Keep track of the progress of Cases, including in Court

Reduce manual and redundant Records keeping

Reclamation will cause ecological damage to Vembanad

A committee constituted by the Ministry of Environment, Forest and Climate Change, has held the CPT(Cochin Port Trust) responsible for CRZ violations in Vembanad, which was classified as a Critically Vulnerable Coastal Area in the CRZ 2011 notification.

It has been alleged that the CPT has reclaimed stretches of Vembanad backwaters and has violated the Coastal Regulation Zone (CRZ) notification.

About Vembanad:

Vembanad Lake, also known as Vembanad Kayal, is the largest lake in Kerala and one of Asia's largest freshwater lakes.

Sprawling over an area of 200 sq km, the lake lies at sea level, separated from the Arabian Sea by a narrow barrier island.

The lake surrounds the islands of Pathiramanal, Perumbalam and Pallippuram and is a popular backwater stretch in Kerala.

Government of India has identified the Vembanad wetland under National Wetlands Conservation Programme.

The Vembanad Wetland system was included in the list of wetlands of international importance, as defined by the Ramsar Convention for the conservation and sustainable utilization of wetlands in 2002. It is the largest of the three Ramsar Sites in the state of Kerala.

About CRZ notification, 2011:

Coastal Regulation Zone (CRZ) Notification, 2011 was notified in January, 2011. It replaced CRZ of 1991, which was amended for 25 times and needed an update.

The “no development zone” definition has been changed. It is reduced from 200 metres from the high-tide line to 100 meters only. This has been done to meet increased demands of housing of fishing and other traditional coastal communities.

This notification widens the definition of CRZ to include the land area from HTL (High Tide Line) to 500 m on the landward side.

body such as creek, river, and estuary without imposing any restrictions of fishing activities.

The concept of a ‘hazard line’ was introduced. Hazard line supposed to be demarcated by the MOEF through the Survey of India, by taking into account tides, waves, sea level rise and shoreline changes

The CRZ notification 2011 enshrines that concept of a Coastal Zone Management Plan (CZMP). This is supposed to regulate coastal development activity and which are to be formulated by the State Governments or the administration of Union Territories.

It will be prepared with the fullest involvement and participation of local communities.The concept of classification of CRZ into four zones has continued in the 2011 notification with the following delineation:

1. CRZ I- ecologically sensitive areas such as mangroves, coral reefs, salt marshes, turtle nesting ground and the inter-tidal zone

2. CRZ II- areas close to the shoreline and which have been developed.

3. CRZ III- Coastal areas that are not substantially built up, including rural coastal areas.

4. CRZ IV- water area from LTL to the limit of territorial waters of India

CRZ IV has been changed from the 1991 notification, which covered coastal stretches in the islands of Andaman & Nicobar and Lakshwadeep. The MOEF has issued a separate notification titled Island Protection Zone 2011 in relation to these areas.

A new category called areas requiring special consideration has been created which consists of (i) CRZ areas of Greater Mumbai, Kerala and Goa, and (ii) Critically vulnerable coastal areas such as Sunderbans.

Clearances for obtaining CRZ approval have been made time-bound. Further, for the first time, post-clearance monitoring of projects has been introduced in the form of the requirement to submit half-yearly compliance reports.

Mining of limestone and other similar minerals is prohibited in Coastal Regulation Zone (CRZ) area. The Coastal Regulation Zone (CRZ) Notification, 1991 and the recently issued CRZ Notification, 2011, prohibits the mining of sand, rocks and other substrata material including limestone except rare minerals like, monazite, rutile etc., and exploitation of oil and natural gas.

New industries and expansion of old industries are prohibited in the CRZs, with some exceptions such as projects of the Department of Atomic Energy; facilities for generating power by non-conventional energy sources; and development of a Greenfield airport already permitted only at Navi Mumbai. Discharge of untreated waste and effluents from industries, cities or towns and other human settlements is also prohibited as is dumping of city or town waste including construction debris, industrial solid waste, etc.

Saturn’s Moon Enceladus

The Cassini spacecraft discovered hydrogen molecules in water plumes rising from the stripe fractures in Enceladus’ icy surface.

The presence of hydrogen established another reference point saying there is hydrothermal activity inside this body, and that's interesting because we know in our own oceans, those are very important places that are teeming with life, and they are probably one of the earliest places where life happened on Earth.

About hydrothermal vents:

Scientists first discovered hydrothermal vents in 1977 while exploring an oceanic spreading ridge near the Galapagos Islands

Scientists found that the hydrothermal vents were surrounded by large numbers of organisms that had never been seen before. These biological communities depend upon chemical processes that result from the interaction of seawater and hot magma associated with underwater volcanoes.

Hydrothermal vents are the result of seawater percolating down through fissures in the ocean crust in the vicinity of spreading centers or subduction zones (places on Earth where two tectonic plates move away or towards one another). The cold seawater is heated by hot magma and re-emerges to form the vents. Seawater in hydrothermal vents may reach temperatures of over 700° Fahrenheit.

Hot seawater in hydrothermal vents does not boil because of the extreme pressure at the depths where the vents are formed.

About Cassini Mission:

Cassini-Huygens is one of the most ambitious missions ever launched into space. Loaded with an array of powerful instruments and cameras, the spacecraft is capable of taking accurate measurements and detailed images in a variety of atmospheric conditions and light spectra.

The spacecraft was launched with two elements: the Cassini orbiter and the Huygens probe. Cassini-Huygens reached Saturn and its moons in July 2004, beaming home valuable data that has transformed our understand of the Saturnian system. Huygens entered the murky atmosphere of Titan, Saturn's biggest moon, and descended via parachute onto its surface - the most distant spacecraft landing to date.

QUICK FACTS

12th Indo-Mongolian Joint Military Exercise Nomadic Elephant held in - Vairengte

G-7 foreign ministers meeting held in - Lucca, Italy

G20 Digital Ministerial Meeting held in - Germany

The slogan of the first NIMCARE World Health Day Summit is - ‘Unite for a Healthy Mind’.

India's first-ever micro-drama festival held in - New Delhi

Cisco launches 5th global cyber range lab in - Gurugram

India’s first ideal digital village is - Harisal village

UNHCR Goodwill Ambassador - Kristin Davi

Newly appointed RBI Executive Director - Malvika Sinha

‘Asian Businesswoman of the Year’ 2016- Asha Khemka

‘The Hit Girl’ is the autobiography of - Asha Parekh