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PCA Ruling on Retrospective Taxation

Why in News Recently, the Permanent Court of Arbitration (PCA) has ruled that the Indian government was wrong in applying a retrospective tax on...

24 Dec 2020 Growth & Development
GST Revenue Gap: NIPFP

Why in News According to the National Institute for Public Finance and Policy (NIPFP), the revenue shortfall for the Goods and Services Tax (GST)...

24 Dec 2020 Growth & Development
Green National Highways Corridor Project

Why in News The government and the World Bank has signed a $500 million project for implementation of the Green National Highways Corridor...

23 Dec 2020 Growth & Development
Social Entrepreneurship

Why in News Recently, the Confederation of Indian Industry (Southern Region) has announced a competition on social entrepreneurship. The...

21 Dec 2020 Growth & Development
E20 Fuel

Why in News Recently, the Indian government has invited public comments for introducing adoption of E20 fuel to promote green fuel like...

19 Dec 2020 Growth & Development
National Security Directive

Why in News Recently, the Cabinet Committee on Security has approved the setting up of a new National Security Directive on the telecommunication...

18 Dec 2020 Growth & Development
North Eastern Region Power System Improvement Project

Why in News The Cabinet Committee on Economic Affairs has approved the Revised Cost Estimate (RCE) of Rs. 6,700 crore for the North Eastern Region...

18 Dec 2020 Growth & Development
Human Development Index: UNDP

Why in News India ranked 131 among 189 countries on the Human Development Index (HDI) for 2019, slipping two places from the previous year,...

17 Dec 2020 Growth & Development
RBI Working Paper on Asset Quality and Credit Channel

Why in News Recently, a Reserve Bank of India (RBI) working paper on ‘Asset quality and credit channel of monetary policy transmission in...

16 Dec 2020 Growth & Development
Reducing Emissions from Coal-Based Power Sector

Why in News Recently, in a webinar by think-tank Centre for Science and Environment (CSE), experts discussed the measures to reduce carbon dioxide...

15 Dec 2020 Growth & Development
Scheme for Special Assistance to States for Capital Expenditure

Why in News All the States except Tamil Nadu have availed benefits of the scheme for “Special Assistance to States for Capital...

14 Dec 2020 Growth & Development
Land Reforms in India

Pre Independence Under the British Raj, the farmers did not have the ownership of the lands they cultivated, the landlordship of the land lied...

14 Dec 2020 Growth & Development
Demand for Interest Waiver

Why in News Recently, the Supreme Court (SC) has heard a batch of petitions seeking interest waiver during the loan moratorium period. The...

10 Dec 2020 Growth & Development
United Nations Investment Promotion Award 2020

Why in News The United Nations Conference on Trade and Development (UNCTAD) has declared ‘Invest India’ as winner of the United Nations...

08 Dec 2020 Growth & Development
The Big Picture: India’s Renewable Energy Plan

Why in News? Recently, the Prime Minister of India has announced about having huge renewable energy deployment plans for India for the next decade...

08 Dec 2020 Growth & Development
Monetary Policy: RBI

Why in News Recently, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has left the repo rate unchanged and maintained an...

05 Dec 2020 Growth & Development
Export Promotion Council for Technical Textiles

Why in News The Ministry of Textiles has invited proposals for the constitution of a dedicated Export Promotion Council (EPC) for Technical...

04 Dec 2020 Growth & Development
Fall in Manufacturing PMI

The Purchasing Managers’ Index (PMI) for India’s manufacturing shows that the sector’s expansion as well as the pace of new orders...

02 Dec 2020 Growth & Development
Mission COVID Suraksha

Why in News The Government of India has announced the stimulus package of Rs. 900 crore for the Mission COVID Suraksha, the Indian Covid-19 Vaccine...

30 Nov 2020 Growth & Development
Cabinet Approves Capital Infusion into NIIF

Why in News Recently, the Union Cabinet has given its approval to the proposal for equity infusion by the Government of Rs. 6000 crores in NIIF Debt...

27 Nov 2020 Growth & Development

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		'article_id' => (int) 7303,
		'category_id' => (int) 21,
		'title' => 'PCA Ruling on Retrospective Taxation',
		'description' => '<h3>Why in News</h3>
<p>Recently, the <a href="/daily-updates/daily-news-analysis/international-tribunal-rejects-claims-against-india" target="_blank" rel="noopener"><strong>Permanent Court of Arbitration</strong></a> (PCA) has ruled that the <strong>Indian government was wrong in applying a retrospective tax on energy giant Cairn Plc</strong>.</p>
<ul style="list-style-type: square;">
<li>The verdict comes barely three months after <a href="/daily-updates/daily-news-analysis/pca-decision-on-retrospective-taxation-by-india" target="_blank" rel="noopener"><strong>India lost arbitration to Vodafone Plc</strong></a> over the retrospective tax legislation amendment.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Background:</strong><br />
<ul style="list-style-type: circle;">
<li>In <strong>2006-07, Cairn UK transferred shares</strong> of Cairn India Holdings to Cairn India on which <strong>Income Tax authorities</strong> slapped a <strong>tax demand of Rs. 24,500 crore</strong> as it contended that Cairn UK had made capital gains.<br />
<ul style="list-style-type: disc;">
<li>Owing to different interpretations of capital gains, the <strong>company refused to pay the tax,</strong> which prompted <strong>cases being filed at the <a href="/daily-updates/daily-news-analysis/79th-foundation-day-of-itat" target="_blank" rel="noopener">Income Tax Appellate Tribunal</a></strong> (ITAT) and the <strong>Delhi High Court</strong>.</li>
</ul>
</li>
<li>In <strong>2012,</strong> Indian government&rsquo;s budget <strong>retrospectively amended the tax code,</strong> giving itself the power to go after <strong>mergers and acquisitions (M&amp;A) deals all the way back to 1962</strong> if the underlying asset was in India.</li>
<li>In <strong>2015,</strong> Cairn Energy Plc <strong>commenced international arbitration</strong> proceedings against the Indian government.</li>
</ul>
</li>
<li><strong>PCA Ruling:</strong><br />
<ul style="list-style-type: circle;">
<li>The <strong>Indian government must pay roughly Rs. 8,000 crore in damages</strong> to Cairn.</li>
<li>Cairn Tax Issue was <strong>not just a tax-related issue but an investment-related dispute,</strong> and therefore the issue comes under its jurisdiction.</li>
<li>The Indian government&rsquo;s <strong>retrospective demand was in breach of the guarantee of fair and equitable treatment</strong>.</li>
<li>The Centre had <strong>failed to uphold its obligations under the <a href="/daily-updates/daily-news-editorials/model-bilateral-investment-treaty" target="_blank" rel="noopener">UK-India Bilateral Investment Treaty</a></strong> and international laws in seeking tax payments from the company for its business reorganisation in the country.</li>
</ul>
</li>
<li><strong>India&rsquo;s Stand:</strong><br />
<ul style="list-style-type: circle;">
<li>The government <strong>will study the award and all its aspects</strong> carefully in consultation with its counsel.</li>
<li>After such consultations, the government will <strong>consider all options and make a decision on the further course of action</strong>, including legal remedies before appropriate fora.</li>
</ul>
</li>
</ul>
<p><strong>Retrospective Taxation</strong></p>
<ul style="list-style-type: square;">
<li>It <strong>allows a country to pass a rule on taxing certain products, items or services</strong> and deals and charge companies from a time behind the date on which the law is passed.</li>
<li>Countries <strong>use this route to correct any anomalies in their taxation policies</strong> that have, in the past, allowed companies to take advantage of such loopholes.</li>
<li>Retrospective Taxation <strong>hurts companies that had knowingly or unknowingly interpreted the tax rules differently</strong>.</li>
<li>Apart from India, many countries including the <strong>USA, the UK, the Netherlands, Canada, Belgium, Australia</strong> and <strong>Italy</strong> have retrospectively taxed companies.</li>
</ul>
<div class="border-bg">
<p><strong>Permanent Court of Arbitration</strong></p>
<ul style="list-style-type: square;">
<li>It was <strong>established in 1899</strong> and is <strong>headquartered in The Hague, Netherlands</strong>.</li>
<li><strong>Purpose:</strong> It is an <strong>intergovernmental organization</strong> dedicated to serve the international community in the field of dispute resolution and to facilitate arbitration and other forms of dispute resolution between States.</li>
<li>It has a <strong>three-part organizational structure</strong> consisting of:<br />
<ul style="list-style-type: circle;">
<li><strong>Administrative Council -</strong> to oversee its policies and budgets,</li>
<li><strong>Members of the Court -</strong> a panel of independent potential arbitrators, and</li>
<li><strong>International Bureau -</strong> its Secretariat, headed by the Secretary-General.</li>
</ul>
</li>
<li><strong>Funds:</strong> It has a <strong>Financial Assistance Fund</strong> which aims at helping developing countries meet part of the costs involved in international arbitration or other means of dispute settlement offered by the PCA.</li>
</ul>
</div>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>An investment-friendly business environment would increase economic activity and help raise more revenue over time for the government. It is to be hoped that tax officials&rsquo; desire to deny their defeat and to try and hang on to legally untenable revenue finds an unsympathetic hearing from politicians in the finance ministry.</li>
<li>India needs to craft meaningful and clear dispute resolution mechanisms in cross-border transactions to prevent the disputes from going to international courts, and save the cost and time expenditure. Improving the arbitration ecosystem will have a positive impact on the <a href="/daily-updates/daily-news-analysis/steps-to-boost-ease-of-doing-business" target="_blank" rel="noopener"><strong>ease of doing business</strong></a>.</li>
</ul>
<p><a href="https://indianexpress.com/article/explained/cairn-india-tax-dispute-case-hague-ruling-explained-7116416/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
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		'article_id' => (int) 7295,
		'category_id' => (int) 21,
		'title' => 'GST Revenue Gap: NIPFP',
		'description' => '<h3>Why in News</h3>
<p>According to the <strong>National Institute for Public Finance and Policy</strong> (NIPFP), the revenue shortfall for the <strong>Goods and Services Tax (GST) compensation</strong> payable to States in 2020-21 could be about Rs. 1.95 lakh crore in the best-case scenario.</p>
<ul style="list-style-type: square;">
<li>The amount is <strong>significantly lower than the Rs. 2.35 lakh crore estimated by the <a href="/daily-updates/daily-news-analysis/gst-council-meet-2" target="_blank" rel="noopener">GST Council</a></strong>.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>GST Compensation:</strong><br />
<ul style="list-style-type: circle;">
<li>According to the <strong>Goods and Services Tax (Compensation to States) Act 2017,</strong> states will receive GST compensation during the transition period of GST (first five years of GST introduction), <strong>if State GST</strong> (SGST collection including receipts of Integrated GST settlement on account of SGST) <strong>revenue falls short of the projected revenue collection</strong>.<br />
<ul style="list-style-type: disc;">
<li>The projection of state revenue in GST is <strong>based on revenue that is subsumed in GST</strong> (also known as revenue under protection in GST) <strong>in the base year 2015-16 and 14% annual growth rate</strong> (year-on-year) in the revenue under protection during the GST transition period.</li>
</ul>
</li>
<li>GST compensation is paid using funds specifically collected as <strong>compensation cess</strong>.<br />
<ul style="list-style-type: disc;">
<li>Compensation cess is <strong>levied on products considered to be sin or luxury goods</strong>.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Findings of NIPFP:</strong><br />
<ul style="list-style-type: circle;">
<li>The <strong>revenue gap in state GST collection</strong> is expected to <strong>vary between 2.85 lakh crore to Rs. 3.27 lakh crore</strong>. <strong>GST compensation cess</strong> collection in 2020-21 is expected to <strong>vary between Rs. 82,242 crore to Rs. 90,386 crore</strong>.<br />
<ul style="list-style-type: disc;">
<li>Therefore, <strong>revenue to the tune of Rs. 1.95 lakh to Rs. 2.45 lakh crore</strong> may require in providing full GST compensation to states in 2020-21.</li>
</ul>
</li>
<li><strong>Maximum revenue gaps</strong> are expected for <strong>Goa, Punjab, Chhattisgarh, Kerala and Chhattisgarh</strong>.</li>
</ul>
</li>
<li><strong>Step Taken by the Government:</strong><br />
<ul style="list-style-type: circle;">
<li>Recently, the <strong>Ministry of Finance</strong> has released the eighth weekly instalment of Rs. 6,000 crore to the states to meet the GST compensation shortfall, taking the total amount released so far under this window to Rs. 48,000 crore.</li>
<li>The <strong>Central government borrows the funds under a special window and passes it on to states</strong> in a back-to-back loan arrangement. <br />
<ul style="list-style-type: disc;">
<li>The interest rate for the latest loan instalment was 4.19%, while the average rate for the entire borrowing so far is at 4.7%.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>National Institute for Public Finance and Policy</h3>
<ul style="list-style-type: square;">
<li><strong>Formation:</strong> NIPFP is an <strong>autonomous body</strong> set up jointly by the Ministry of Finance, the erstwhile Planning Commission, and several state governments. It was founded in 1976. It is registered under the Societies Registration Act, 1860.</li>
<li><strong>Functions:</strong><br />
<ul style="list-style-type: circle;">
<li>It undertakes research, policy advocacy and capacity building in areas related to public economics.</li>
<li>One of the major mandates of the institute is to <strong>assist the Central, State and Local governments</strong> in formulating and reforming public policies by providing an analytical base.</li>
</ul>
</li>
<li><strong>Funding:</strong> It receives <strong>an annual grant from the Ministry of Finance and various State governments</strong>. However, it <strong>maintains an independent non-government character</strong>.</li>
<li><strong>Governing Body:</strong><br />
<ul style="list-style-type: circle;">
<li>It includes the Revenue Secretary, Economic Affairs Secretary and the Chief Economic Advisor from the <strong>Ministry of Finance</strong> and representatives from <strong>NITI Aayog, Reserve Bank of India</strong> (RBI) and three state governments.</li>
<li>It also includes three distinguished economists, members of sponsoring agencies and other invitees.</li>
<li>It is <strong>involved in appointing the Chairman and the Director</strong>.<br />
<ul style="list-style-type: disc;">
<li>The usual <strong>tenure of a chairman is four years,</strong> which can be extended.</li>
<li>At present, <strong>Dr. Urjit Patel,</strong> former Governor of the RBI, is the Chairman.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Location:</strong> New Delhi.</li>
</ul>
<p><a href="https://www.thehindu.com/business/nipfp-pegs-best-case-gst-revenue-gap-at-195-lakh-crore/article33405468.ece" target="_blank" rel="noopener"><strong>Source: TH</strong></a></p>',
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		'article_id' => (int) 7282,
		'category_id' => (int) 21,
		'title' => 'Green National Highways Corridor Project',
		'description' => '<h3>Why in News</h3>
<p>The <strong>government and the <a href="/important-institutions/drishti-specials-important-institutions-international-institution/world-bank-group" target="_blank" rel="noopener">World Bank</a></strong> has signed<strong> a $500 million project</strong> for implementation of the <strong>Green National Highways Corridor Project.</strong></p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Green National Highways Corridor Project:</strong><br />
<ul style="list-style-type: circle;">
<li>The <strong>Ministry of Road Transport and Highways (MoRTH)</strong> had launched a <strong>National Green Highways Mission (NGHM)</strong> following the promulgation of <strong>&lsquo;Green Highways Policy&rsquo;</strong> in September 2015.</li>
<li>The <strong>Green</strong> <strong>National Highways Corridor Projects (GNHCP)</strong> supports the <strong>implementation of the NGHM</strong> and the provision of<strong> green and safe transport.</strong></li>
<li>The <strong>objective</strong> of the Project is to demonstrate <strong>safe and green <a href="/daily-updates/daily-news-analysis/centre-s-power-for-land-acquisition-for-highway-sc" target="_blank" rel="noopener">National Highway</a> corridors in selected States</strong> and enhance the institutional capacity of the MoRTH in mainstreaming safety and green technologies.</li>
</ul>
</li>
<li><strong>Three Components of the Project:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Green Highway Corridor Improvement and Maintenance:</strong> <br />
<ul style="list-style-type: disc;">
<li>This includes upgradation and maintenance for<strong> five years</strong> of about <strong>783 km of selected existing National Highways</strong> in the states of<strong> Rajasthan, Himachal Pradesh, Uttar Pradesh and Andhra Pradesh.</strong></li>
</ul>
</li>
<li><strong>Institutional Capacity Enhancement:</strong> <br />
<ul style="list-style-type: disc;">
<li>It will support the capacity enhancement of MoRTH in its pursuit to <strong>conserve natural resources and improve climate vulnerability</strong> of the National Highways network and<strong> reduce Greenhouse Gas (GHG) emissions.</strong></li>
</ul>
</li>
<li><strong>Road Safety:</strong> <br />
<ul style="list-style-type: disc;">
<li>It will provide support to <strong>improve <a href="/pdf/1593988971-road-safety-1.pdf" target="_blank" rel="noopener">road safety</a> data analytics and highway safety monitoring</strong> and implementation.</li>
</ul>
</li>
</ul>
</li>
<li><strong>About the Pact between the Government and the World Bank:</strong><br />
<ul style="list-style-type: circle;">
<li>The USD 500 million loan from the <strong>International Bank for Reconstruction and Development (IBRD),</strong> an arm of the World Bank, has a<strong> maturity of 18.5 years</strong> including a five-year grace period.</li>
</ul>
</li>
<li><strong>Significance of the Project:</strong><br />
<ul style="list-style-type: circle;">
<li>The <strong>National Highways of India carry about 40% of road traffic.</strong> However, several sections of these highways have<strong> inadequate capacity, weak drainage structures and black spots prone to accidents.</strong></li>
<li>The ultimate objective of transport infrastructure is to <strong>provide seamless connectivity and reduce logistics costs.</strong></li>
<li>Historically, the transport sector in India has offered limited employment opportunities for women. The project will <strong>support the ministry with an in-depth analysis of gender-related issues in the transport sector</strong> along with help in creating jobs for women by training women-led micro enterprises and women collectives to implement green technologies in the highway corridors.</li>
<li>It will also support the <a href="/daily-updates/daily-news-analysis/status-of-bharatmala-pariyojana" target="_blank" rel="noopener"><strong>Bharatmala Pariyojana Program (BPP).</strong></a></li>
</ul>
</li>
</ul>
<h3>Key Features of Green Highways Policy 2015</h3>
<ul style="list-style-type: square;">
<li>Promote greening and development of eco-friendly National Highway corridors across the country with participation of farmers, private sector and government institutions including the Forest Department.</li>
<li>It addresses the issues that lie in the road of development and shows the way towards <a href="/pdf/1594392281-sustainable-development-3.pdf" target="_blank" rel="noopener"><strong>sustainable development.</strong></a><br />
<ul style="list-style-type: circle;">
<li>Planting of trees in any particular area will depend on the soil suitability and climatic conditions.</li>
</ul>
</li>
<li>Its objective is to<strong> reduce the impact of air pollution and dust</strong> by planting trees and shrubs along the National Highways. They will act as natural sinks for air pollutants and <strong>arrest soil erosion</strong> at the embankment slopes.</li>
</ul>
<div class="border-bg">
<p><strong>World Bank</strong></p>
<ul style="list-style-type: square;">
<li><strong>History: Founded</strong> at the <strong>Bretton Woods conference in 1944,</strong> the International Bank for Reconstruction and Development&mdash;soon called the World Bank&mdash;has expanded to a closely associated group of<strong> five development institutions. </strong></li>
<li><strong>Five Development Institutions:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>International Bank for Reconstruction and Development (IBRD)</strong> provides loans, credits, and grants.</li>
<li><strong>International Development Association (IDA)</strong> provides low- or no-interest loans to low-income countries.</li>
<li>The <strong>International Finance Corporation (IFC)</strong> provides investment, advice, and asset management services to companies and governments.</li>
<li>The<strong> Multilateral Investment Guarantee Agency (MIGA)</strong> insures lenders and investors against political risk such as war.</li>
<li>The <strong>International Centre for the Settlement of Investment Disputes (ICSID)</strong> settles investment-disputes between investors and countries.<br />
<ul style="list-style-type: disc;">
<li><strong>India is not a member of ICSID.</strong></li>
</ul>
</li>
</ul>
</li>
<li>Recently, the World Bank has released <strong><a href="/daily-updates/daily-news-analysis/new-purchasing-power-parities-icp-2017" target="_blank" rel="noopener">new Purchasing Power Parities (PPPs)</a></strong> for reference year 2017, under <strong>International Comparison Program (ICP)</strong> that adjusts for differences in the cost of living across economies of the world.</li>
<li>It has also developed the <a href="/daily-updates/daily-news-analysis/new-national-logistics-law" target="_blank" rel="noopener"><strong>Logistics Performance Index.</strong></a></li>
<li><strong>Reports Published by World Bank:</strong><br />
<ul style="list-style-type: circle;">
<li><a href="/daily-updates/daily-news-analysis/world-bank-s-human-capital-index-2020" target="_blank" rel="noopener"><strong>Human Capital Index Report</strong></a></li>
<li><a href="/daily-updates/daily-news-analysis/global-economic-prospects-world-bank" target="_blank" rel="noopener"><strong>Global Economic Prospects</strong></a></li>
<li><a href="/daily-updates/daily-news-analysis/ease-of-doing-business-2020" target="_blank" rel="noopener"><strong>Ease of Doing Business</strong></a></li>
<li><a href="/daily-updates/daily-news-analysis/south-asia-economic-focus-report-world-bank" target="_blank" rel="noopener"><strong>South Asia Economic Focus Report</strong></a></li>
<li><a href="/daily-updates/daily-news-analysis/poverty-and-shared-prosperity-report-world-bank" target="_blank" rel="noopener"><strong>Poverty and Shared Prosperity Report</strong></a></li>
<li>World Development Report</li>
</ul>
</li>
<li><strong>Projects Supported by the World Bank:</strong><br />
<ul style="list-style-type: circle;">
<li><a href="/daily-updates/daily-news-analysis/mid-term-review-of-national-hydrology-project" target="_blank" rel="noopener"><strong>National Hydrology Project</strong></a></li>
<li><a href="/daily-updates/daily-news-analysis/stars-project" target="_blank" rel="noopener"><strong>Strengthening Teaching-Learning and Results for States (STARS) Project</strong></a></li>
<li><a href="/daily-updates/daily-news-analysis/report-on-national-nutrition-mission-niti-aayog" target="_blank" rel="noopener"><strong>National Nutrition Mission</strong></a></li>
<li><a href="/daily-updates/daily-news-analysis/national-mission-for-clean-ganga" target="_blank" rel="noopener"><strong>National Mission for Clean Ganga</strong></a></li>
<li><a href="/daily-updates/daily-news-analysis/national-biopharma-mission" target="_blank" rel="noopener"><strong>National Biopharma Mission</strong></a></li>
<li><a href="/daily-updates/daily-news-analysis/atal-bhujal-yojana" target="_blank" rel="noopener"><strong>Atal Bhujal Yojana</strong></a></li>
</ul>
</li>
</ul>
</div>
<p><a href="https://indianexpress.com/article/business/govt-world-bank-ink-500-million-pact-to-develop-highway-corridors-7115829/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
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	(int) 3 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7263,
		'category_id' => (int) 21,
		'title' => 'Social Entrepreneurship',
		'description' => '<h3>Why in News</h3>
<p>Recently, the <strong>Confederation of Indian Industry</strong> (Southern Region) has announced a <strong>competition on social entrepreneurship.</strong></p>
<ul style="list-style-type: square;">
<li>The competition is for existing early stage social enterprises and students with entrepreneurial ideas that are socially focused and with significant social impact.</li>
<li>The <strong>Confederation of Indian Industry (CII)</strong> works to create and sustain an environment conducive to the development of India, partnering industry, Government and civil society, through advisory and consultative processes. It is a <strong>non-government, not-for-profit,</strong> industry-led and industry-managed organization.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Social Entrepreneurship (Meaning):</strong><br />
<ul style="list-style-type: circle;">
<li>It is a construct that <strong>blends the idea of a commercial enterprise with the tenets of a charitable nonprofit organization.</strong></li>
<li>It is about <strong>creating business models</strong> revolving around low-cost products and services to<strong> resolve social inequities.</strong></li>
<li>It helps to succeed in economic initiatives, and all the investment focuses on the social and environmental mission.</li>
<li>Social entrepreneurs are<strong> also called social innovators.</strong> They are the agents of change and create significant change using innovative ideas. They identify the problems and build the difference by their plan.</li>
<li>Social entrepreneurship is a growing trend alongside <strong>socially responsible (SRI) and <a href="/pdf/1601375516-esg-funds-becoming-popular-in-india.pdf" target="_blank" rel="noopener">ESG (Environmental, Social and Governance) investing.</a></strong></li>
<li><strong>Examples of social entrepreneurship</strong> include educational programs, providing banking services in underserved areas and helping children orphaned by epidemic disease.</li>
</ul>
</li>
<li><strong>Need in India:</strong><br />
<ul style="list-style-type: circle;">
<li>India needs numerous social entrepreneurs with innovative solutions to the <strong>society&rsquo;s most pressing social problems</strong> in the areas of <strong>sanitation, education, water conservation, gender bias, primary health, female foeticide, carbon emissions</strong> and other environmental problems. These problems are persistent in nature and need urgent resolutions.</li>
</ul>
</li>
<li><strong>Examples in India:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Pravah and ComMutiny:</strong> The two organizations that train the youth for leadership roles, Pravah and ComMutiny, have <strong>won the Social Entrepreneur of the Year (SEOY) 2020 award</strong> instituted by the Schwab Foundation and Jubilant Bhartia Foundation.<br />
<ul style="list-style-type: disc;">
<li>Established in 1993, <strong>Pravah</strong> has been facilitating the<strong> development of a generation of empathetic, sensitive youth change-makers in India</strong> through psycho-social interventions, helping them build more inclusive identities and societies.</li>
<li><strong>ComMutiny</strong> which was formed in 2008, works on the idea of making collectives out of organizations like Pravah.</li>
</ul>
</li>
<li><strong>Dr. Govindappa Venkataswamy&rsquo;s Aravind Eye Hospitals:</strong> Its business model is highly social, yet sustainable. It runs on its own revenue. The founder&rsquo;s mission was to <strong>eradicate blindness amongst the poor in India,</strong> especially in rural India living with a minimum daily wage and who can&rsquo;t afford medical treatment.</li>
</ul>
</li>
<li><strong>Challenges:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Business Plan:</strong> The rigor of building and following a plan that is based on market realities and customer insight is critical; social entrepreneurs need support of lawyers, chartered accountants, senior entrepreneurs to help them develop a good business plan.</li>
<li><strong>Limited to Specific Geographies:</strong> Due to lack of funds or the founders&rsquo; limited bandwidth.</li>
</ul>
</li>
<li><strong>Suggestions:</strong><br />
<ul style="list-style-type: circle;">
<li>The<strong> 2013 Companies Act</strong> in India which<strong> mandates companies to donate 2% of their average net profits to <a href="/printpdf/corporate-social-responsibility-csr-expenditure" target="_blank" rel="noopener">CSR (Corporate Social Responsibility)</a></strong> has catalyzed investment in social ventures but to truly achieve benefits of scale, it <strong>needs to be done in a much more coordinated manner.</strong><br />
<ul style="list-style-type: disc;">
<li>A big service that <strong>a venture philanthropy firm or an ecosystem player</strong> can provide social entrepreneurs is<strong> organizing the world of investors</strong> &ndash; by the size of the cheque they write, by the areas they focus on, their specific preferences and then most importantly by facilitating introductions to them.</li>
</ul>
</li>
<li>An organization that has to scale effectively <strong>needs to have a deep bench of talent at all levels.</strong></li>
<li>Further, there is a need for<strong> &lsquo;impact-measurement&rsquo;.</strong><br />
<ul style="list-style-type: disc;">
<li>All investors want to see outcomes but how does one measure them when cycle times of one&rsquo;s intervention is much longer.</li>
<li>It can be objectively measured how many mid-day meals are provided to children in their school but it&rsquo;s harder to determine the efficacy of a sports program instituted to build confidence amongst students.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Related Initiatives:</strong><br />
<ul style="list-style-type: circle;">
<li>The<strong> Securities and Exchange Board of India&rsquo;s</strong> initiative to create a <a href="/daily-updates/daily-news-analysis/social-stock-exchange" target="_blank" rel="noopener"><strong>Social Stock Exchange (SSE)</strong></a> will boost social and &amp; environmental impact investing in India by creating a new platform to fund social-sector organizations, and establish a standardized framework for measuring and reporting social impact for both donors and investors.</li>
<li><strong>Gramin Vikas Trust</strong> (GVT) is a National Level Organization established in 1999 by Krishak Bharati Cooperative Limited (KRIBHCO) for bringing about a sustainable improvement in livelihood of the poor and marginalized communities, especially, the tribal population including women.<br />
<ul style="list-style-type: disc;">
<li>GVT sees social entrepreneurship as the process of bringing about social change on a major scale.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>Social entrepreneurship has evolved over the years and has given innovative and profitable ideas that address social problems. With more ideas being incubated and funds flowing into social enterprise, the subcontinent, which already has successful examples such as Amul, Barefoot College, Grameen Bank, etc., has the ability to create many more socially relevant enterprises.</li>
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		'article_id' => (int) 7249,
		'category_id' => (int) 21,
		'title' => 'E20 Fuel',
		'description' => '<h3>Why in News</h3>
<p>Recently, the Indian government has invited public comments for introducing adoption of <strong>E20 fuel to promote green fuel like ethanol.</strong></p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Composition:</strong> E20 fuel is <strong>a blend of 20% of ethanol with gasoline.</strong><br />
<ul style="list-style-type: circle;">
<li>The <strong>current permissible level of blending is 10% of ethanol,</strong> though India reached<strong> only 5.6% of blending in 2019.</strong></li>
</ul>
</li>
<li><strong>Significance:</strong><br />
<ul style="list-style-type: circle;">
<li>It will help in<strong> reducing emissions of carbon dioxide,</strong> hydrocarbons, etc.</li>
<li>It will help<strong> reduce the oil import bill,</strong> thereby saving foreign exchange and boosting energy security.</li>
</ul>
</li>
<li><strong>Compatibility of Vehicles:</strong> As per the government, the <strong>compatibility of the vehicle to the percentage of ethanol</strong> in the blend of ethanol and gasoline shall be defined by the vehicle manufacturer and the same shall be <strong>displayed on the vehicle by putting a clearly visible sticker.</strong></li>
</ul>
<h3>Green Fuel</h3>
<ul style="list-style-type: square;">
<li><strong>Green fuel, also known as <a href="/to-the-points/paper3/biofuels-1" target="_blank" rel="noopener">biofuel</a></strong>, is a type of fuel <strong>distilled from plants and animal materials,</strong> believed by some to be more environmentally friendly than the widely-used fossil fuels that power most of the world.</li>
<li><strong>Types:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Bioethanol</strong> <br />
<ul style="list-style-type: disc;">
<li>It is <strong>derived from corn and sugarcane</strong> using the fermentation process.</li>
<li>A<strong> litre</strong> of<strong> ethanol</strong> contains approximately <strong>two thirds of the energy provided by a litre of petrol.</strong></li>
<li>When mixed with petrol, it<strong> improves the combustion performance</strong> and <strong>lowers the emissions of carbon monoxide and sulphur oxide.</strong></li>
</ul>
</li>
<li><strong>Biodiesel</strong> <br />
<ul style="list-style-type: disc;">
<li>It is <strong>derived from vegetable oils</strong> like soybean oil or palm oil, <strong>vegetable waste oils,</strong> and <strong>animal fats</strong> by a biochemical process called <strong>&ldquo;Transesterification.&rdquo;</strong></li>
<li>It produces very less or no amount of harmful gases as compared to diesel.</li>
</ul>
</li>
<li><strong>Biogas</strong> <br />
<ul style="list-style-type: disc;">
<li>It is <strong>produced by anaerobic decomposition of organic matter</strong> like sewage from animals and humans.</li>
<li>Major proportion of biogas is methane and carbon dioxide, though it also has small proportions of hydrogen sulfide, hydrogen, carbon monoxide and siloxanes.</li>
<li>It is commonly <strong>used for heating, electricity and for automobiles.</strong></li>
</ul>
</li>
<li><strong>Biobutanol</strong> <br />
<ul style="list-style-type: disc;">
<li>It is produced in the same way as bioethanol i.e. through the fermentation of starch.</li>
<li>The <strong>energy content in butanol is the highest among the other gasoline alternatives.</strong> It can be added to diesel to reduce emissions.</li>
<li>It <strong>serves as a solvent in the textile industry</strong> and is also used as a base in perfumes.</li>
</ul>
</li>
<li><strong>Biohydrogen</strong> <br />
<ul style="list-style-type: disc;">
<li>Biohydrogen, like biogas,<strong> can be produced using a number of processes such as pyrolysis, gasification or biological fermentation.</strong></li>
<li>It can be the <strong>perfect alternative for fossil fuel.</strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>Initiatives to Promote Biofuels:</strong><br />
<ul style="list-style-type: circle;">
<li><a href="/daily-updates/daily-news-analysis/Government-Allows-Ethanol-Extraction-for-Blending-from-Foodgrains." target="_blank" rel="noopener"><strong>Ethanol Blended Petrol (EBP) programme</strong></a>: To extract the fuel from surplus quantities of food grains such as maize, jawar, bajra fruit and vegetable waste.</li>
<li><a href="/daily-updates/daily-news-analysis/pradhan-mantri-ji-van-yojana" target="_blank" rel="noopener"><strong>Pradhan Mantri JI-VAN Yojana, 2019</strong></a>: The objective of the scheme is to create an ecosystem for setting up commercial projects and to boost research and development in the 2G Ethanol sector.</li>
<li><strong>GOBAR (Galvanizing Organic Bio-Agro Resources) DHAN scheme, 2018:</strong> It focuses on managing and converting cattle dung and solid waste in farms to useful compost,biogas and bio-CNG, thus keeping villages clean and increasing the income of rural households.<br />
<ul style="list-style-type: disc;">
<li>It was launched under Swachh Bharat Mission (Gramin).</li>
</ul>
</li>
<li><a href="/daily-updates/daily-news-analysis/scheme-for-used-cooking-oil" target="_blank" rel="noopener"><strong>Repurpose Used Cooking Oil (RUCO)</strong></a>: It was launched by the <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/food-safety-and-standards-authority-of-india-fssai" target="_blank" rel="noopener"><strong>Food Safety and Standards Authority of India (FSSAI)</strong></a> and aims for an ecosystem that will enable the collection and conversion of used cooking oil to biodiesel.</li>
<li><a href="/daily-updates/daily-news-analysis/biofuel-day-2" target="_blank" rel="noopener"><strong>National Policy on Biofuels, 2018:</strong></a><br />
<ul style="list-style-type: disc;">
<li>The Policy categorises biofuels as "Basic Biofuels" to enable extension of appropriate financial and fiscal incentives under three categories:<br />
<ul style="list-style-type: disc;">
<li><strong>First Generation</strong> (1G) ethanol &amp; biodiesel and "Advanced Biofuels".</li>
<li><strong>Second Generation</strong> (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels.</li>
<li><strong>Third Generation</strong> (3G) biofuels, bio-CNG etc.</li>
</ul>
</li>
<li>It <strong>expands the scope of raw material for ethanol production</strong> by allowing use of sugarcane juice, sugar containing materials like sugar beet, sweet sorghum, starch containing materials like corn, cassava, damaged food grains like wheat, broken rice, rotten potatoes, unfit for human consumption, for ethanol production.</li>
<li>The Policy<strong> allows use of surplus food grains for production of ethanol</strong> for blending with petrol with the approval of National Biofuel Coordination Committee.</li>
<li>With a<strong> thrust on Advanced Biofuels,</strong> the Policy indicates a viability gap funding scheme for 2G ethanol Bio refineries of Rs. 5000 crore in 6 years in addition to additional tax incentives, higher purchase price as compared to 1G biofuels.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>India being a large agricultural economy, there is a large amount of agricultural residues available, therefore the scope of producing biofuels is immense in the country. <strong>Biofuels can help in rural and agricultural development in the form of new cash crops.</strong></li>
<li>Efforts for producing sustainable biofuels should be made by ensuring use of wastelands and municipal wastes that get generated in cities. <strong>A properly designed and implemented biofuel solution can provide both food and energy.</strong></li>
<li>A <strong>community-based biodiesel distribution programme</strong> that benefits local economies, from the farmers growing the feedstock to local businesses producing and distributing the fuel to the end consumer, will be a welcome step.</li>
</ul>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1681730" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
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	(int) 5 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7239,
		'category_id' => (int) 21,
		'title' => 'National Security Directive',
		'description' => '<h3>Why in News</h3>
<p>Recently, the<strong> Cabinet Committee on Security</strong> has approved the setting up of a <strong>new National Security Directive</strong> on the <strong>telecommunication</strong> sector.</p>
<ul style="list-style-type: square;">
<li>Also, the Union Cabinet has <strong>approved the auction of 2,251.25 megahertz of spectrum</strong> with a<strong> reserve price of Rs. 3.92 lakh crore.</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Background:</strong><br />
<ul style="list-style-type: circle;">
<li>The Centre asked all <strong>telecom operators to undertake an &lsquo;information security audit&rsquo;</strong> of their networks.</li>
<li>The<strong> objective</strong> was to <strong>specifically check for any &lsquo;backdoor&rsquo;</strong> or <strong>&lsquo;trapdoor&rsquo; vulnerabilities</strong> in the telecom networks, which can be <strong>exploited to extract information and pass on illegally</strong> to agencies around the world.<br />
<ul style="list-style-type: disc;">
<li>A backdoor or a trap door is a <strong>bug installed in the telecom hardware that allows companies to listen in or collect data</strong> being shared on the network.</li>
</ul>
</li>
<li>Chinese vendors Huawei and ZTE have been <strong>under global scrutiny for allegedly installing backdoor vulnerabilities</strong> and <strong>spying</strong> for the Chinese government and have been <strong>banned by several countries.</strong><br />
<ul style="list-style-type: disc;">
<li>Almost <strong>30% of Bharti Airtel&rsquo;s network comprises Chinese telecom equipment</strong> and it is <strong>40% for Vodafone Idea&rsquo;s</strong> network. <strong>State-run telcos</strong> Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) too <strong>have equipment from Chinese vendors,</strong> including <strong>Huawei</strong> and <strong>ZTE,</strong> in their 3G and older networks.</li>
</ul>
</li>
<li><strong>All vendors</strong> including Huawei and ZTE were<strong> allowed to participate in 5G trials</strong> but their <strong>participation became difficult owing to developments like the Galwan Valley Standoff</strong> in Ladakh.<br />
<ul style="list-style-type: disc;">
<li>The <strong>government barred BSNL and MTNL from using Chinese equipment</strong> for the roll-out of its 4G network.</li>
<li>The <strong>Department of Telecommunications</strong> hinted that it would <strong>announce guidelines asking even private telcos to refrain from using Chinese equipment,</strong> however, no such guidelines have been issued till now.</li>
</ul>
</li>
</ul>
</li>
<li><strong>National Security Directive:</strong><br />
<ul style="list-style-type: circle;">
<li>It aims to <strong>classify telecom products and their sources</strong> under the<strong> &lsquo;trusted&rsquo;</strong> and <strong>&lsquo;non-trusted&rsquo;</strong> categories.</li>
<li>It will make its decision based on <strong>approval of the National Security Committee on Telecom.</strong><br />
<ul style="list-style-type: disc;">
<li>It will be <strong>headed by the deputy National Security Advisor</strong> (NSA) and have members from other departments and ministries, and independent experts as well as two members from the industry.</li>
</ul>
</li>
<li>The<strong> National Cyber Security Coordinator</strong> is the <strong>designated authority</strong> and will <strong>devise the methodology</strong> to designate trusted products.</li>
<li>From among the sources declared as trusted sources by the designated authority, those which <strong>meet the criteria of the Department of Telecom&rsquo;s preferential market access policy</strong> will be certified as <strong>India trusted sources.</strong><br />
<ul style="list-style-type: disc;">
<li>The policy provides <strong>opportunities to local manufacturers of equipment and handsets in the &ldquo;sensitive&rdquo; telecom sector </strong>to<strong> counter dumping of products</strong> by other countries.</li>
</ul>
</li>
<li><strong>Telecom Service Providers</strong> (TSPs) are <strong>required to connect new devices which are designated trusted</strong> products.</li>
<li>However, the directive<strong> will not ask TSPs to mandatorily replace the old and existing equipment</strong> and does not impact the ongoing annual maintenance contracts or upgrades to old equipment either.</li>
</ul>
</li>
<li><strong>Significance:</strong><br />
<ul style="list-style-type: circle;">
<li>Apart from the directive, the government will release at regular intervals new guidelines for<strong> effective monitoring and effective control of the network security</strong> of the TSPs.</li>
<li>The move could potentially make it <strong>more difficult for Chinese telecom equipment vendors</strong> to supply equipment to Indian telecom players.</li>
<li><strong>Mobile applications that either have Chinese origins or have central servers in China</strong> may also find <strong>re-entry in the market extremely difficult.</strong><br />
<ul style="list-style-type: disc;">
<li>Since <strong>June 2020,</strong> the <strong>Centre has banned over 200 Chinese apps,</strong> citing national security concerns.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Telecom Spectrum Auction</h3>
<ul style="list-style-type: square;">
<li>Spectrum in the <strong>frequency bands of 700MHz, 800MHz, 900MHz, 1,800MHz, 2,100MHz, 2,300MHz and 2,500MHz</strong> would be offered for<strong> 20 years.</strong></li>
<li>The auction would help <strong>boost spectrum availability with telecom operators enabling improvements in 4G services.</strong></li>
<li>By winning the right to use spectrum through the auction, incumbent telecom service providers will be<strong> able to augment their network capacity,</strong> whereas<strong> new players will be able to start services.</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Spectrum holding per operator in a service area in India is well below the international average</strong> so any further auctioning of spectrum is needed.</li>
</ul>
</li>
<li><strong>Spectrum Auction:</strong><br />
<ul style="list-style-type: circle;">
<li>It is a <strong>transparent process of spectrum assignment to successful bidders.</strong> <br />
<ul style="list-style-type: disc;">
<li>Sufficient spectrum availability increases the quality of telecom services for the consumers.</li>
</ul>
</li>
<li>It is relevant that the telecom sector today is a key infrastructure provider with <strong>strong linkages with economic growth, direct and indirect employment generation</strong> and expansion of <strong>Digital India.</strong></li>
</ul>
</li>
</ul>
<p><a href="https://indianexpress.com/article/business/telecom-products-govt-to-come-out-with-trusted-non-trusted-sources-7107760/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
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	(int) 6 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7237,
		'category_id' => (int) 21,
		'title' => 'North Eastern Region Power System Improvement Project',
		'description' => '<h3>Why in News</h3>
<p>The <a href="/printpdf/cabinet-committees-formed" target="_blank" rel="noopener"><strong>Cabinet Committee</strong></a> <strong>on Economic Affairs</strong> has approved the Revised Cost Estimate (RCE) of <strong>Rs. 6,700 crore</strong> for the<strong> North Eastern Region Power System Improvement Project (NERPSIP).</strong></p>
<ul style="list-style-type: square;">
<li>This is a major step towards <strong>economic development of the North Eastern Region</strong> through strengthening of Intra - State Transmission and Distribution systems.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>North Eastern Region Power System Improvement Project:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Background:</strong><br />
<ul style="list-style-type: disc;">
<li>The Scheme was initially approved in <strong>December 2014</strong> as a <a href="/daily-updates/daily-news-editorials/reforming-centrally-sponsored-scheme" target="_blank" rel="noopener"><strong>Central Sector Scheme</strong></a> of the Ministry of Power.</li>
</ul>
</li>
<li><strong>Funded By:</strong> <br />
<ul style="list-style-type: disc;">
<li>The<strong> assistance of the <a href="/important-institutions/drishti-specials-important-institutions-international-institution/world-bank-group" target="_blank" rel="noopener">World Bank</a></strong> fund and by the Government of India through the Budget support of the Ministry of Power on<strong> 50:50</strong> basis except for the <strong>capacity building component for Rs. 89 crore, which will be entirely funded by the Government of India.</strong></li>
</ul>
</li>
<li><strong>Implemented By:</strong><br />
<ul style="list-style-type: disc;">
<li>The scheme is being implemented through <strong>Power Grid Corporation of India Limited (POWERGRID)</strong> in association with six beneficiary North Eastern States namely, <strong>Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura</strong> and is targeted to be commissioned by December 2021.</li>
<li><strong>POWERGRID</strong> is a <strong>'Maharatna'</strong> Company operating under Ministry of Power, it is engaged in power transmission business with the responsibility for <strong>planning, implementation, operation and maintenance of Inter-State Transmission System (ISTS).</strong></li>
</ul>
</li>
<li><strong>Maintenance:</strong><br />
<ul style="list-style-type: disc;">
<li>After commissioning, the project will be owned and maintained by the respective <strong>North Eastern State Utilities.</strong></li>
</ul>
</li>
<li><strong>Objective:</strong><br />
<ul style="list-style-type: disc;">
<li>Government&rsquo;s<strong> commitment for the total economic development</strong> of the North Eastern Region and to <strong>strengthen the Intra-State Transmission &amp; Distribution Infrastructure</strong> in the North East Region.</li>
</ul>
</li>
<li><strong>Significance:</strong><br />
<ul style="list-style-type: disc;">
<li>Implementation of this scheme will <strong>create a reliable power grid and improve NER States' connectivity to the upcoming load centers,</strong> and thus <strong>extend the benefits</strong> of the grid connected power to all categories of consumers of beneficiaries in the North Eastern Region.</li>
<li>The scheme shall also<strong> increase the per capita power consumption</strong> of these States, and shall <strong>contribute to the total economic development</strong> of the North-Eastern Region.</li>
<li>Hiring local manpower is<strong> generating a lot of employment for skilled and unskilled manpower</strong> of North-Eastern Region.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Other Initiatives for North Eastern States:</strong><br />
<ul style="list-style-type: circle;">
<li><a href="/loksabha-rajyasabha-discussions/the-big-picture-infrastructure-and-north-east" target="_blank" rel="noopener"><strong>North-East Industrial Development Scheme (NEIDS):</strong> </a><br />
<ul style="list-style-type: disc;">
<li>In order to promote employment in the North East States, the Government is incentivizing primarily the MSME Sector through this scheme.</li>
</ul>
</li>
<li><strong>International Tourism Mart (ITM):</strong><br />
<ul style="list-style-type: disc;">
<li>It is organized annually with the <strong>objective of showcasing the largely untapped tourism potential of the North East region</strong> in the domestic and international markets.</li>
<li>10% of the plan allocation of the Ministry of Tourism is marked for the NorthEast region.</li>
<li>There are also plans to hold an NER Tourism Mart where tour operators from all over the country can meet and the regional tourism can be showcased.</li>
</ul>
</li>
<li><a href="/daily-updates/daily-news-analysis/launch-of-bamboo-clusters#:~:text=National%20Bamboo%20Mission%3A,(industry)%20and%20spoke%20model." target="_blank" rel="noopener"><strong>National Bamboo Mission:</strong></a><br />
<ul style="list-style-type: disc;">
<li>The Mission envisages promoting holistic growth of the bamboo sector by adopting the area-based, regionally differentiated strategy. It aims to increase the area under bamboo cultivation and marketing.</li>
</ul>
</li>
</ul>
</li>
</ul>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1681053" target="_blank" rel="noopener"><strong>Source:PIB</strong></a></p>',
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		'article_id' => (int) 7231,
		'category_id' => (int) 21,
		'title' => 'Human Development Index: UNDP',
		'description' => '<h3>Why in News</h3>
<p><strong>India ranked 131</strong> among 189 countries on the<strong> Human Development Index (HDI) for 2019, slipping two places from the previous year,</strong> according to the <strong>Human Development Report (HDR) 2020</strong> released by the<strong> United Nations Development Program (UNDP).</strong></p>
<ul style="list-style-type: square;">
<li>The 2020 Report has <strong>introduced planetary pressures-adjusted Human Development Index,</strong> which adjusts the standard Human Development Index (HDI) by a country&rsquo;s<strong> per capita carbon dioxide emissions and material footprint.</strong></li>
<li>The <strong>other indices that form the part of the Report</strong> are: <br />
<ul style="list-style-type: circle;">
<li>Inequality-adjusted Human Development Index (IHDI),</li>
<li>Gender Development Index (GDI),</li>
<li>Gender Inequality Index (GII) and</li>
<li>Multidimensional Poverty Index (MPI).</li>
</ul>
</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Human Development Index:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>About:</strong> HDI <strong>emphasizes</strong> that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone.</li>
<li><strong>Based on three Basic Dimensions of Human Development:</strong> <br />
<ul style="list-style-type: disc;">
<li>A long and healthy life,</li>
<li>Access to knowledge, and</li>
<li>A decent standard of living.</li>
</ul>
</li>
<li><strong>Top Performers for 2019:</strong><br />
<ul style="list-style-type: disc;">
<li>Norway topped the index, followed by Ireland and Switzerland. Hong Kong and Iceland complete the top five.</li>
</ul>
</li>
<li><strong>Performance of the Asian Region:</strong><br />
<ul style="list-style-type: disc;">
<li>Singapore was ranked 11, Saudi Arabia 40, and Malaysia was at 62 in the global index, representing the<strong> top bracket among the Asian countries</strong> with<strong> &ldquo;very high human development".</strong></li>
<li>Sri Lanka (72), Thailand (79), China (85) and Indonesia and Philippines (both 107), and Vietnam (117), among others, were <strong>&ldquo;high human development" countries.</strong></li>
<li><strong>India,</strong> Bhutan, Bangladesh, Myanmar, Nepal, Cambodia, Kenya and Pakistan were ranked among countries with<strong> &ldquo;medium human development"</strong> with ranks between 120 and 156.</li>
</ul>
</li>
<li><strong>India&rsquo;s Performance:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Overall Performance: HDI value for 2019 is 0.645,</strong> which puts the country in the <strong>medium human development category,</strong> positioning it at <strong>131 out of 189 countries</strong> and territories. <br />
<ul style="list-style-type: disc;">
<li>Between 1990 and 2019, India&rsquo;s HDI value increased from 0.429 to 0.645, an increase of 50.3%.</li>
</ul>
</li>
<li><strong>Long and Healthy Life: Life expectancy for Indian&rsquo;s at birth was 69.7 years in 2019,</strong> slightly<strong> lower than the south Asian average of 69.9 years.</strong><br />
<ul style="list-style-type: disc;">
<li>Between 1990 and 2019, India&rsquo;s<strong> life expectancy at birth increased by 11.8 years.</strong></li>
</ul>
</li>
<li><strong>Access to Knowledge:</strong> The <strong>expected years of schooling</strong> in India was<strong> 12.2 years,</strong> compared with 11.2 years in Bangladesh and 8.3 years in Pakistan.<br />
<ul style="list-style-type: disc;">
<li>Between 1990 and 2019, <strong>mean years of schooling increased by 3.5 years, </strong>and<strong> expected years of schooling increased by 4.5 years.</strong></li>
</ul>
</li>
<li><strong>A Decent Standard of Living:</strong> In terms of <strong>Gross National Income (GNI) per capita, India at USD 6,681 fared better</strong> than some others in 2019, despite<strong> a fall over the previous year.</strong> <br />
<ul style="list-style-type: disc;">
<li>India&rsquo;s GNI per capita <strong>increased by about 273.9% between 1990 and 2019.</strong></li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
<li><strong>Planetary pressures-adjusted Human Development Index (PHDI):</strong><br />
<ul style="list-style-type: circle;">
<li><strong>About:</strong> The PHDI adjusts the standard HDI by a country&rsquo;s level of carbon dioxide emissions and material footprint, each on a <strong>per capita basis.</strong></li>
<li><strong>Performance of the Countries:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Norway,</strong> which <strong>tops the HDI, falls 15 places</strong> if this metric is used, leaving <strong>Ireland at the top</strong> of the table.</li>
<li>The <strong>United States</strong> (HDI Rank -17) <strong>and Canada</strong> (HDI Rank -16) <strong>would fall 45 and 40 places </strong>respectively,<strong> reflecting their disproportionate impact on natural resources.</strong></li>
<li>The <strong>oil and gas-rich Gulf States also fell steeply. China would drop 16 places</strong> from its current ranking of 85.</li>
</ul>
</li>
<li><strong>India&rsquo;s Performance:</strong><br />
<ul style="list-style-type: disc;">
<li>India<strong> would move up eight places</strong> in the ranking.</li>
<li>Under the<strong> Paris Agreement,</strong> India pledged to reduce the emission intensity of its GDP from the 2005 level by 33-35% by 2030 and to obtain 40% of electric power capacity from non-fossil fuel sources by 2030.<br />
<ul style="list-style-type: disc;">
<li><strong>Solar capacity in India increased</strong> from 2.6 gigawatts in March 2014 to 30 gigawatts in July 2019, achieving its target of 20 gigawatts four years ahead of schedule.</li>
<li>In 2019, India<strong> ranked fifth for installed solar capacity.</strong></li>
<li>The <strong>National Solar Mission</strong> aims to promote solar energy for power generation and other uses to make solar energy competitive with fossil fuel-based options.</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Other Indices</h3>
<ul style="list-style-type: square;">
<li><strong>Inequality-adjusted Human Development Index:</strong> <br />
<ul style="list-style-type: circle;">
<li>The IHDI indicates<strong> percentage loss in HDI due to inequality.</strong></li>
<li>For <strong>India,</strong> IHDI value for 2019 is <strong>0.537 (16.8% overall loss).</strong></li>
</ul>
</li>
<li><strong>Gender Development Index:</strong><br />
<ul style="list-style-type: circle;">
<li>GDI <strong>measures disparities on the HDI by gender.</strong></li>
<li>For<strong> India,</strong> GDI value for 2019 is <strong>0.820 (World: 0.943).</strong></li>
</ul>
</li>
<li><strong>Gender Inequality Index:</strong><br />
<ul style="list-style-type: circle;">
<li>GII presents a composite measure of gender inequality using three dimensions:<br />
<ul style="list-style-type: disc;">
<li>Reproductive health,</li>
<li>Empowerment and</li>
<li>The labour market.</li>
</ul>
</li>
<li>In GII, India is<strong> at 123<sup>rd</sup> rank.</strong> Last year, it was ranked 122<sup>nd</sup> out of 162 countries.</li>
</ul>
</li>
<li><strong>Multidimensional Poverty Index:</strong><br />
<ul style="list-style-type: circle;">
<li>MPI captures the multiple deprivations that people in developing countries face in their health, education and standard of living.</li>
<li>The most recent survey data publicly available for India&rsquo;s MPI estimation refer to 2015-2016. In India,<strong> 27.9% of the population</strong> (3,77,492 thousand people) are <strong>multidimensionally poor,</strong> while <strong>an additional 19.3%</strong> are classified under <strong>vulnerable to multidimensional poverty</strong> (2,60,596 thousand people).</li>
</ul>
</li>
</ul>
<h3>Other Findings</h3>
<ul style="list-style-type: square;">
<li><strong>Major Challenges:</strong> <br />
<ul style="list-style-type: circle;">
<li>While the devastating effects of <strong>Covid-19</strong> have taken the world&rsquo;s attention, other layered crises, from <strong>climate change to rising inequalities,</strong> continue to take their toll. The challenges of<strong> planetary and societal imbalance</strong> are intertwined: they interact in a vicious circle, each making the other worse.</li>
</ul>
</li>
<li><strong>Challenges Related to Children:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Indigenous children</strong> in Cambodia, India and Thailand show <strong>more malnutrition-related issues</strong> such as stunting and wasting.</li>
<li>In<strong> India,</strong> different responses in parent behaviour as well as some disinvestment in girls&rsquo; health and education have led to <strong>higher malnutrition among girls than among boys</strong> as a consequence of shocks likely linked to climate change.</li>
</ul>
</li>
<li><strong>Displacements in 2020:</strong> <br />
<ul style="list-style-type: circle;">
<li><strong>Disasters continued to trigger most new displacements</strong> in 2020. <strong>Cyclone Amphan</strong> hit Bangladesh and India, driving the largest single displacement event in the first half of the year, triggering 3.3 million pre-emptive evacuations.</li>
</ul>
</li>
<li><strong>Solutions:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Expanding human development -</strong> more education of women and girls, more economic empowerment of women, more bargaining power of young girls in households, reduced poverty, etc.</li>
<li>Evidence from Colombia to India indicates that <strong>financial security and ownership of land improve women&rsquo;s security</strong> and reduce the risk of gender-based violence, clearly indicating that <strong>owning land can empower women.</strong></li>
</ul>
</li>
</ul>
<p><a href="https://www.thehindu.com/news/national/india-ranks-131-in-2020-un-human-development-index/article33348091.ece" target="_blank" rel="noopener"><strong>Source: TH</strong></a></p>',
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		'article_id' => (int) 7218,
		'category_id' => (int) 21,
		'title' => 'RBI Working Paper on Asset Quality and Credit Channel',
		'description' => '<h3>Why in News</h3>
<p>Recently, a <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/important-institutions-national-institution-reserve-bank-of-india" target="_blank" rel="noopener"><strong>Reserve Bank of India (RBI)</strong></a> working paper on &lsquo;Asset quality and credit channel of monetary policy transmission in India&rsquo; has been released.</p>
<ul style="list-style-type: square;">
<li>RBI <strong>introduced the RBI Working Papers series in March 2011</strong>.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Credit Channel:</strong><br />
<ul style="list-style-type: circle;">
<li>The credit channel of monetary policy transmission is <strong>robust in India</strong> and <strong>operates through changes in lending</strong>. <br />
<ul style="list-style-type: disc;">
<li>There are <strong>two ways</strong> the credit channel can work: by affecting overall bank lending (the <strong>bank lending channel</strong>) and by affecting the allocation of loans (the <strong>balance sheet channel</strong>).</li>
</ul>
</li>
</ul>
</li>
<li><strong>Credit Deceleration:</strong><br />
<ul style="list-style-type: circle;">
<li>Credit growth deceleration in India <strong>since 2013</strong> is explained by <strong>asset quality stress</strong> in the banking system, <strong>slowdown</strong> in economic activity and <strong>moderation in bank deposits</strong>.</li>
<li>The <strong>growth rate in credit offtake</strong> has steeply <strong>declined to 5.8% in November 2020</strong>, as against <strong>14.2% in 2013</strong>.</li>
<li>A <strong>wide divergence</strong> has also been observed in <strong>credit growth of public and private sector banks</strong>.</li>
</ul>
</li>
<li><strong>Potential Determinants of Credit Growth:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Asset Quality Stress:</strong><br />
<ul style="list-style-type: disc;">
<li>Since the <strong>early 2010s</strong>, asset quality of banks in India <strong>has worsened gradually</strong>, impacting their profitability.</li>
<li>Asset quality of Scheduled Commercial Banks (SCBs) is <strong>measured as a ratio of gross <a href="/daily-updates/daily-news-editorials/lessons-from-npa-crisis" target="_blank" rel="noopener">non-performing assets</a> (GNPAs) to gross advances</strong>.</li>
</ul>
</li>
<li><strong>Nominal GDP Growth:</strong> <br />
<ul style="list-style-type: disc;">
<li><strong>Higher growth</strong> in nominal Gross Domestic Product (GDP) <strong>increases the demand for credit</strong>.</li>
<li>The decline in credit growth post 2013 was mainly due to a surge in bad loans, accentuated by a slowdown in GDP.</li>
<li>Nominal GDP is an assessment of economic production in an economy that includes current prices in its calculation. <br />
<ol style="list-style-type: lower-alpha;">
<li>Nominal <strong>differs from <a href="/daily-updates/daily-news-analysis/gdp-decreases-to-11-year-low" target="_blank" rel="noopener">real GDP</a></strong> in that it includes changes in prices due to inflation, which reflects the rate of price increases in an economy.</li>
</ol>
</li>
</ul>
</li>
<li><strong>Deposit Growth:</strong> <br />
<ul style="list-style-type: disc;">
<li>Deposit growth has <strong>remained highly volatile</strong>, especially from the second half of 2015.</li>
<li>It needs to be noted that <strong>a financial institution with a greater availability of funds</strong> will be in a better position to provide <strong>more credit to borrowers</strong>.</li>
</ul>
</li>
<li><strong>Investment Growth:</strong> <br />
<ul style="list-style-type: disc;">
<li>The <strong>surge in investment growth</strong> has also added to the <strong>slowdown in credit growth</strong>.</li>
<li>To the extent <strong>banks invest in securities, lower resources</strong> would be available for <strong>extending as credit</strong>.</li>
<li>In India, <strong>investments by banks</strong> include both investment in government securities as prescribed under the statutory obligations (<a href="/printpdf/liquidity-measures-extended-for-banks" target="_blank" rel="noopener"><strong>statutory liquidity ratio</strong></a> or SLR) and voluntary investments held in government securities and bonds/debentures/shares of corporate bodies.</li>
</ul>
</li>
<li><strong>Interest Rates:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Higher</strong> the interest rates, <strong>higher will be the cost of borrowing</strong> and hence, <strong>lower would be the demand for credit</strong>.</li>
</ul>
</li>
<li><strong>Other Bank-specific Characteristics:</strong> <br />
<ul style="list-style-type: disc;">
<li>Such as the <strong>size of the bank and capitalisation</strong> (an estimation of the value of a business).</li>
</ul>
</li>
</ul>
</li>
<li><strong>Measures Taken:</strong><br />
<ul style="list-style-type: circle;">
<li>The <strong>accommodative stance of monetary policy</strong> and <strong>reduction in the policy repo rate</strong> (starting from 2019) helped cushion the credit deceleration.<br />
<ul style="list-style-type: disc;">
<li>An accommodative stance means <strong>a central bank will cut rates to inject money</strong> into the financial system whenever needed.</li>
<li><strong>Repo Rate,</strong> or repurchase rate, is the key monetary policy rate of interest at which the central bank or the Reserve Bank of India (RBI) lends short term money to banks.<br />
<ol style="list-style-type: lower-alpha;">
<li>Everything from interest rates on loans to returns on deposits is influenced by this crucial rate set by the RBI.</li>
<li>The central bank <strong><a href="/daily-updates/daily-news-analysis/rbi-cuts-repo-rate" target="_blank" rel="noopener">has slashed policy repo rate</a> by 350 basis points to 4%</strong> now from 7.50% in March 2013.</li>
</ol>
</li>
</ul>
</li>
<li>After the Asset Quality Review (AQR), since 2015, many hidden bad loans had surfaced, forcing the government to enact the <a href="/to-the-points/paper3/insolvency-and-bankruptcy-code-3#:~:text=It%20is%20a%20legal%20declaration,Indian%20economy%20down%20for%20years." target="_blank" rel="noopener"><strong>Insolvency and Bankruptcy Code (IBC)</strong></a> for resolution of bad loans.</li>
<li>Despite the lockdown, layoffs and closure of many units in the wake of the <strong><a href="/daily-updates/daily-news-analysis/covid-19-now-pandemic-who" target="_blank" rel="noopener">Covid-19 pandemic</a>, gross NPAs of 31 banks witnessed a decline of 5.25%</strong> in absolute terms as the <strong>RBI allowed relaxation in the computation of bad loans</strong> and announced <strong>a loan restructuring scheme</strong>.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>In a <strong>bank-dominated financial system</strong> such as India, the <strong>credit channel plays a critical role</strong> in transmitting monetary policy impulses to the credit market and from thereon to the real economy.</li>
<li>Controlling for asset quality, in the short-run, the credit channel of monetary transmission <strong>of public sector banks is stronger</strong> relative to that of private sector banks.</li>
<li>For monetary policy actions to have their full impact on the credit channel, it is imperative that the <strong>asset quality concerns of banks are addressed</strong> and that their <strong>capital positions are strengthened</strong>.</li>
</ul>
<p><a href="https://indianexpress.com/article/business/banking-and-finance/credit-deceleration-since-2013-due-to-worsening-asset-quality-rbi-paper-7106515/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
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		'article_id' => (int) 7211,
		'category_id' => (int) 21,
		'title' => 'Reducing Emissions from Coal-Based Power Sector',
		'description' => '<h3>Why in News</h3>
<p>Recently, in a webinar by think-tank <strong>Centre for Science and Environment (CSE),</strong> experts discussed the measures to<strong> reduce carbon dioxide (CO<sub>2</sub>)</strong> footprints of <strong>India&rsquo;s coal-based power sector.</strong></p>
<ul style="list-style-type: square;">
<li><strong>Centre for Science and Environment (CSE)</strong> is a public interest research and advocacy organisation based in New Delhi.</li>
<li>CSE researches into, lobbies for and communicates<strong> the urgency of development that is both sustainable and equitable.</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Power Generation in India:</strong><br />
<ul style="list-style-type: circle;">
<li>India mainly uses<strong> three types</strong> of thermal power plants-<strong> Coal, Gas and Liquid-fuel based.</strong></li>
<li>The electricity generated by these plants adds up to <strong>62.2%</strong> of the total power generation in the country.</li>
</ul>
</li>
</ul>
<p><a href="http://www.drishtiias.com/images/uploads/1608020706_image3.png" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1608020706_image3.png" style="display: block; margin-left: auto; margin-right: auto;" width="600" caption="false" /></a></p>
<ul style="list-style-type: square;">
<li><strong>Emissions from coal-based Power Sector:</strong><br />
<ul style="list-style-type: circle;">
<li>India&rsquo;s coal-based thermal power sector is one of the <strong>country&rsquo;s biggest emitters of CO<sub>2</sub>.</strong></li>
<li>It emits <strong>1.1 giga-tonne of CO<sub>2</sub> every year;</strong> this is<strong> 2.5%</strong> of global<strong><a href="/daily-updates/daily-news-analysis/greenhouse-gas-levels-reach-record-highs-un-report" target="_blank" rel="noopener"> GreenHouse Gas</a> (GHG)</strong> emissions, one-third of India&rsquo;s <strong>GHG</strong> emissions, and around <strong>50%</strong> of India&rsquo;s fuel-related CO<sub>2</sub> emissions.</li>
</ul>
</li>
<li><strong>Policies Needed to Reduce Emissions:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Improving fleet technology and efficiency, renovating and modernising:</strong><br />
<ul style="list-style-type: disc;">
<li>India has one of the youngest coal-based thermal plants in the world, with around <strong>64% of the capacity (132 GW) less than a decade old.</strong></li>
<li>The government&rsquo;s renovation and modernisation policies need to play a key role in maintaining the efficiency of this fleet.</li>
</ul>
</li>
<li><strong>Planning for the Old Capacity:</strong> <br />
<ul style="list-style-type: disc;">
<li>In 2015, over <strong>34 GW capacity</strong> in India was more than 25 years old, and <strong>60% of it was highly inefficient.</strong></li>
<li><strong>Increasing India&rsquo;s renewable electricity generation</strong> can help further the cause to accelerate the retirement of old and inefficient plants.</li>
</ul>
</li>
<li><strong>Propagating Biomass Co-firing:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Biomass co-firing</strong> stands for adding biomass as a partial substitute fuel in high efficiency coal boilers.<br />
<ul style="list-style-type: disc;">
<li><strong>Coal and biomass are combusted together in boilers</strong> that have been designed to burn coal. For this purpose, the existing coal power plant has to be partly reconstructed and retrofitted.</li>
<li>Co-firing is an option to <strong>convert biomass to electricity, in an efficient and clean way, and to reduce GHG emissions of the power plant.</strong></li>
</ul>
</li>
<li>Biomass co-firing is a globally accepted <strong>cost-effective method</strong> for <strong>decarbonising</strong> a coal fleet.<br />
<ul style="list-style-type: disc;">
<li><a href="/daily-updates/daily-news-analysis/energy-needs-in-the-context-of-climate-crisis" target="_blank" rel="noopener"><strong>Decarbonising</strong> </a>means reducing carbon intensity, i.e. reducing the emissions per unit of electricity generated (often given in grams of carbon dioxide per kilowatt-hour).</li>
</ul>
</li>
<li>India is a country where biomass is usually burnt on the field which reflects apathy towards resolving the problem of clean coal using a very simple solution that is readily available.</li>
</ul>
</li>
<li><strong>Investing in <a href="/mains-practice-question/question-153" target="_blank" rel="noopener">Carbon Capture and Storage</a> (CCS):</strong> <br />
<ul style="list-style-type: disc;">
<li>Globally, carbon capture and storage has struggled to pick up and India&rsquo;s prospects appear to be dim at least until 2030.</li>
<li>Businesses should invest in indigenous research and development to bring down the costs of CCS.</li>
</ul>
</li>
<li><strong>Coal Beneficiation:</strong><br />
<ul style="list-style-type: disc;">
<li><a href="/to-the-points/paper3/coal-sector-in-india#:~:text=Coal%20beneficiation%20is%20a%20process,the%20associated%20ash%20or%20both." target="_blank" rel="noopener"><strong>Coal Beneficiation</strong></a> is a process by which<strong> the quality of raw coal is improved</strong> by either reducing the extraneous matter that gets extracted along with the mined coal or reducing the associated ash or both.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Other Initiatives to Reduce Emissions:</strong><br />
<ul style="list-style-type: circle;">
<li>India shifted from <a href="/loksabha-rajyasabha-discussions/policy-watch-india-will-shift-to-bs-vi-norms" target="_blank" rel="noopener"><strong>Bharat Stage-IV (BS-IV) to Bharat Stage-VI (BS-VI)</strong></a> emission norms from 1<sup>st</sup> April 2020 which was earlier to be adopted by 2024.</li>
<li>It has distributed more <strong>than 360 million LED bulbs under the <a href="/daily-updates/daily-news-analysis/report-on-energy-efficiency-measures" target="_blank" rel="noopener">UJALA scheme</a></strong>, which has led to energy saving of about 47 billion units of electricity per year and reduction of 38 million tonnes of CO<sub>2</sub> per year.</li>
<li><a href="/daily-updates/daily-news-analysis/world-solar-technology-summit-isa" target="_blank" rel="noopener"><strong>International Solar Alliance</strong></a>: It is an Indian initiative conceived as a <strong>coalition of solar-resource-rich countries</strong> (which lie either completely or partly between the tropic of Cancer and the tropic of Capricorn) to address their special energy needs.</li>
<li><a href="/to-the-points/Paper2/national-action-plan-on-climate-change" target="_blank" rel="noopener"><strong>The National Action Plan on Climate Change (NAPCC)</strong> </a>was launched in 2008 which <strong>aims at creating awareness among the representatives of the public,</strong> different agencies of the government, scientists, industry and the communities on the threat posed by climate change and the steps to counter it.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><a href="/infographics/info-paper3/renewable-energy" target="_blank" rel="noopener"><strong>Renewable capacity</strong> </a>addition alone cannot be enough; ambitious plans to <strong>reduce GHG emissions in the coal sector are equally needed</strong> to meaningfully tackle climate change.</li>
<li>We need an <strong>energy transformation</strong> through which we would <strong>realise the co-benefits of local and global emission reduction.</strong> We also need the <strong>right to energy for all, as energy poverty and inequity is not acceptable.</strong></li>
<li>Diversified <strong>energy mix is what India needs to focus on,</strong> no doubt solar and wind have a lot of potential, Hydrogen would also be a game changer in Indian energy transition space.</li>
</ul>
<p><a href="https://www.downtoearth.org.in/news/energy/coal-here-to-stay-but-measures-can-cut-down-emissions-by-22-cse-74640#:~:text=Published%3A%20Monday%2014%20December%202020,greenhouse%20gas%20(GHG)%20emissions.&amp;text=The%20measures%2C%20among%20others%2C%20could,per%20cent%2C%20according%20to%20CSE." target="_blank" rel="noopener"><strong>Source:DTE</strong></a></p>',
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		'article_id' => (int) 7203,
		'category_id' => (int) 21,
		'title' => 'Scheme for Special Assistance to States for Capital Expenditure',
		'description' => '<h3>Why in News</h3>
<p>All the <strong>States except Tamil Nadu</strong> have availed benefits of the scheme for<strong> &ldquo;Special Assistance to States for Capital Expenditure&rdquo;.</strong></p>
<ul style="list-style-type: square;">
<li>The scheme was<strong> announced by the Ministry of Finance</strong> as a part of the <a href="/daily-updates/daily-news-editorials/atma-nirbhar-bharat-abhiyan-challenges" target="_blank" rel="noopener"><strong>Aatmanirbhar Bharat package.</strong></a></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Background:</strong> As part of the Aatmanirbhar Bharat Package, the government had announced that the <strong>Centre will offer Rs. 12,000 crore special interest-free 50-year loan to states,</strong> exclusively for capital expenditure.</li>
<li><strong>Aim:</strong> To<strong> boost capital expenditure by the State governments</strong> which are facing a difficult financial environment this year due to the shortfall in tax revenue arising from the <a href="/daily-updates/daily-news-editorials/covid-19-and-india-1" target="_blank" rel="noopener"><strong>Covid-19 pandemic.</strong></a></li>
<li><strong>Three Parts:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Part&ndash;I</strong> of the scheme <strong>covers the north-eastern region</strong> (Rs. 200 crores).</li>
<li><strong>Part-II</strong> is for <strong>all other States</strong> (Rs. 7500 crores).</li>
<li><strong>Part-III</strong> of the scheme is <strong>aimed at pushing various citizen-centric reforms</strong> in the States. <br />
<ul style="list-style-type: disc;">
<li>Under this Part, an amount of <strong>Rs. 2000</strong> crores is earmarked.</li>
<li>This amount<strong> will be available only to those States</strong> which <strong>carry out at least three out of the four reforms</strong> specified by the Ministry of Finance on the reform-linked additional borrowing permissions.</li>
<li><strong>Four Reforms:<a href="/daily-updates/daily-news-analysis/24-states-under-one-nation-one-ration-card" target="_blank" rel="noopener"> One nation one ration card</a></strong>, ease of doing business, urban local body/ utility reform and power sector reforms.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Status:</strong><br />
<ul style="list-style-type: circle;">
<li>The Ministry of Finance has<strong> approved Rs. 9,879.61 crore</strong> worth of capital expenditure proposals of 27 States.<br />
<ul style="list-style-type: disc;">
<li>Of this, Rs. 4,939.81 crore has been released as the first instalment.</li>
</ul>
</li>
<li>The capital expenditure projects have been <strong>approved in diverse sectors</strong> such as health, rural development, water supply, irrigation, power, transport, education, urban development.</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Capital Expenditure</strong></p>
<ul style="list-style-type: square;">
<li><strong>Meaning:</strong><br />
<ul style="list-style-type: circle;">
<li>Capital expenditure is the <strong>money spent by the government</strong> on the development of machinery, equipment, building, health facilities, education, etc.</li>
<li>It also includes the expenditure incurred<strong> on acquiring fixed assets</strong> like land and investment by the government that gives profits or dividend in future.</li>
<li>Along with the creation of assets, <strong>repayment of loan</strong> is also capital expenditure, as it reduces liability.</li>
<li>Capital spending is <strong>associated with investment or development spending,</strong> where expenditure has benefits extending years into the future.</li>
</ul>
</li>
<li><strong>Significance:</strong><br />
<ul style="list-style-type: circle;">
<li>Capital expenditure, which leads to the creation of assets are long-term in nature and allow the economy to <strong>generate revenue for many years</strong> by adding or improving production facilities and boosting operational efficiency.</li>
<li>It also<strong> increases labour participation,</strong> takes stock of the economy and <strong>raises its capacity to produce more in future.</strong></li>
</ul>
</li>
<li><strong>Different from Revenue Expenditure:</strong><br />
<ul style="list-style-type: circle;">
<li>Unlike capital expenditure, which creates assets for the future, revenue expenditure is one that <strong>neither creates assets nor reduces any liability</strong> of the government.</li>
<li>Salaries of employees, interest payment on past debt, subsidies, pension, etc, fall under the category of revenue expenditure. It is<strong> recurring in nature.</strong></li>
</ul>
</li>
</ul>
</div>
<p><a href="https://pib.gov.in/PressReleseDetail.aspx?PRID=1680145" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
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		'article_id' => (int) 7201,
		'category_id' => (int) 28,
		'title' => 'Land Reforms in India',
		'description' => '<h3>Pre Independence</h3>
<ul style="list-style-type: square;">
<li>Under the <a href="/to-the-points/paper1/land-revenue-systems-in-british-india" target="_blank" rel="noopener"><strong>British Raj</strong></a>, the farmers did not have the ownership of the lands they cultivated, the landlordship of the land lied with the Zamindars, Jagirdars etc.</li>
<li>Several important issues confronted the government and stood as a challenge in front of independent India.<br />
<ul style="list-style-type: circle;">
<li>Land was concentrated in the hands of a few and there was a proliferation of intermediaries who had no vested interest in self-cultivation. <br />
<ul style="list-style-type: disc;">
<li>Leasing out land was a common practice.</li>
</ul>
</li>
<li>The tenancy contracts were expropriative in nature and tenant exploitation was almost everywhere.</li>
<li>Land records were in extremely bad shape giving rise to a mass of litigation.</li>
<li>One problem of agriculture was that the land was fragmented into very small parts l for commercial farming.<br />
<ul style="list-style-type: disc;">
<li>It resulted in inefficient use of soil, capital, and labour in the form of boundary lands and boundary disputes.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Post Independence</h3>
<ul style="list-style-type: square;">
<li>A committee, under the Chairmanship of J. C. Kumarappan was appointed to look into the problem of land. The Kumarappa Committee's report recommended comprehensive agrarian reform measures.</li>
<li>The Land Reforms of the independent India had four components: <br />
<ol>
<li>The Abolition of the Intermediaries</li>
<li>Tenancy Reforms</li>
<li>Fixing Ceilings on Landholdings</li>
<li>Consolidation of Landholdings.</li>
</ol>
</li>
<li>These were taken in phases because of the need to establish a political will for their wider acceptance of these reforms.</li>
</ul>
<h3>Abolition of the Intermediaries</h3>
<ul style="list-style-type: square;">
<li><strong>Abolition of the zamindari system:</strong> The first important legislation was the abolition of the zamindari system, which removed the layer of intermediaries who stood between the cultivators and the state.</li>
<li>The reform was relatively the most effective than the other reforms, for in most areas it succeeded in taking away the superior rights of the zamindars over the land and weakening their economic and political power. <br />
<ul style="list-style-type: circle;">
<li>The reform was made to strengthen the actual landholders, the cultivators.</li>
</ul>
</li>
<li><strong>Advantages:</strong> The abolition of intermediaries made almost 2 crore tenants the owners of the land they cultivated.<br />
<ul style="list-style-type: circle;">
<li>The abolition of intermediaries has led to the end of a parasite class. More lands have been brought to government possession for distribution to landless farmers.</li>
<li>A considerable area of cultivable waste land and private forests belonging to the intermediaries has been vested in the State.</li>
<li>The legal abolition brought the cultivators in direct contact with the government.</li>
</ul>
</li>
<li><strong>Disadvantages:</strong> However, zamindari abolition did not wipe out landlordism or the tenancy or sharecropping systems, which continued in many areas. It only removed the top layer of landlords in the multi-layered agrarian structure.<br />
<ul style="list-style-type: circle;">
<li>It has led to large-scale eviction. Large-scale eviction, in turn, has given rise to several problems &ndash; social, economic, administrative and legal.</li>
</ul>
</li>
<li><strong>Issues:</strong> While the states of J&amp;K and West Bengal legalised the abolition, in other states, intermediaries were allowed to retain possession of lands under their personal cultivation without limit being set. <br />
<ul style="list-style-type: circle;">
<li>Besides, in some states, the law applied only to tenant interests like sairati mahals etc. and not to agricultural holdings.<br />
<ul style="list-style-type: disc;">
<li>Therefore, many large intermediaries continued to exist even after the formal abolition of zamindari.</li>
</ul>
</li>
<li>It led to large-scale eviction which in turn gave rise to several socio-economic and administrative problems.</li>
</ul>
</li>
</ul>
<h3>Tenancy Reforms</h3>
<ul style="list-style-type: square;">
<li>After passing the Zamindari Abolition Acts, the next major problem was of tenancy regulation. <br />
<ul style="list-style-type: circle;">
<li>The rent paid by the tenants during the pre-independence period was exorbitant; between 35% and 75% of gross produce throughout India.</li>
</ul>
</li>
<li>Tenancy reforms introduced to <strong>regulate rent, provide security of tenure</strong> and<strong> confer ownership to tenants.</strong><br />
<ul style="list-style-type: circle;">
<li>With the enactment of legislation (early 1950s) for regulating the rent payable by the cultivators, fair rent was fixed at 20% to 25% of the gross produce level in all the states except Punjab, Haryana, Jammu and Kashmir, Tamil Nadu, and some parts of Andhra Pradesh.</li>
</ul>
</li>
<li>The reform attempted either to outlaw tenancy altogether or to regulate rents to give some security to the tenants.</li>
<li>In West Bengal and Kerala, there was a radical restructuring of the agrarian structure that gave land rights to the tenants.</li>
<li><strong>Issues:</strong> In most of the states, these laws were never implemented very effectively. Despite repeated emphasis in the plan documents, some states could not pass legislation to confer rights of ownership to tenants.<br />
<ul style="list-style-type: circle;">
<li>Few states in India have completely abolished tenancy while others states have given clearly spelt out rights to recognized tenants and sharecroppers.</li>
<li>Although the reforms reduced the areas under tenancy, they led to only a small percentage of tenants acquiring ownership rights.</li>
</ul>
</li>
</ul>
<h3>Ceilings on Landholdings</h3>
<ul style="list-style-type: square;">
<li>The third major category of land reform laws were the<strong> Land Ceiling Acts.</strong> In simpler terms, the ceilings on landholdings referred to <strong>legally stipulating the maximum size</strong> beyond which <strong>no individual farmer or farm household could hold any land.&nbsp;</strong>The imposition of such a ceiling was to deter the concentration of land in the hands of a few.</li>
<li>In 1942 the <strong>Kumarappan Committee</strong> recommended the maximum size of lands a landlord can retain. It was three times the economic holding i.e. sufficient livelihood for a family.</li>
<li>By 1961-62, all the state governments had passed the land ceiling acts. But the ceiling limits varied from state to state. To bring uniformity across states, a new land ceiling policy was evolved in 1971.<br />
<ul style="list-style-type: circle;">
<li>In 1972, national guidelines were issued with <strong>ceiling limits</strong> varying from region to region, depending on the kind of land, its productivity, and other such factors.</li>
<li>It was 10-18 acres for best land, 18-27 acres for second class land and for the rest with 27-54 acres of land with a slightly higher limit in the hill and desert areas.</li>
</ul>
</li>
<li>With the help of these reforms, the state was supposed to identify and take possession of surplus land (above the ceiling limit) held by each household, and redistribute it to landless families and households in other specified categories, such as SCs and STs.</li>
<li><strong>Issues:</strong> In most of the states these acts proved to be toothless. There were many loopholes and other strategies through which most landowners were able to escape from having their surplus land taken over by the state.<br />
<ul style="list-style-type: circle;">
<li>While some very large estates were broken up, in most cases landowners managed to divide the land among relatives and others, including servants, in so-called<strong> &lsquo;benami transfers&rsquo; &ndash;</strong> which allowed them to keep control over the land.</li>
<li>In some places, some rich farmers actually divorced their wives (but continued to live with them) in order to avoid the provisions of the Land Ceiling Act, which allowed a separate share for unmarried women but not for wives.</li>
</ul>
</li>
</ul>
<h3>Consolidation of Landholdings</h3>
<ul style="list-style-type: square;">
<li><strong>Consolidation</strong> referred to reorganization/redistribution of fragmented lands into one plot. <br />
<ul style="list-style-type: circle;">
<li>The growing population and less work opportunities in non- agricultural sectors, increased pressure on the land, leading to an increasing trend of fragmentation of the landholdings.</li>
<li>This fragmentation of land made the irrigation management tasks and personal supervision of the land plots very difficult.</li>
</ul>
</li>
<li>This led to the introduction of landholdings consolidation.<br />
<ul style="list-style-type: circle;">
<li>Under this act, If a farmer had a few plots of land in the village, those lands were consolidated into one bigger piece of land which was done by either purchasing or exchanging the land.</li>
</ul>
</li>
<li>Almost all states except Tamil Nadu, Kerala, Manipur, Nagaland, Tripura and parts of Andhra Pradesh enacted laws for consolidation of Holdings.</li>
<li>In Punjab and Haryana, there was compulsory consolidation of the lands, whereas in other states law provided for consolidation on voluntary basis; if the majority of the landowners agreed.</li>
<li><strong>Advantages:</strong> It prevented the endless subdivision and fragmentation of land Holdings.<br />
<ul style="list-style-type: circle;">
<li>It saved the time and labour of the farmers spent in irrigating and cultivating lands at different places.</li>
<li>The reform also brought down the cost of cultivation and reduced litigation among farmers as well.</li>
</ul>
</li>
<li><strong>Result:</strong> Due to lack of adequate political and administrative support the progress made in terms of consolidation of holding was not very satisfactory except in Punjab, Haryana and western Uttar Pradesh where the task of consolidation was accomplished. <br />
<ul style="list-style-type: circle;">
<li>However, in these states there was a need for re-consolidation due to subsequent fragmentation of land under the population pressure.</li>
</ul>
</li>
<li><strong>Need of re-consolidation:</strong> The average holding size in 1970-71 was 2.28 hectares (Ha), which has come down to 1.08 Ha in 2015-16.</li>
<li>While Nagaland has the largest average farm size, Punjab and Haryana rank second and third in the list respectively. <br />
<ul style="list-style-type: circle;">
<li>The holdings are much smaller in densely populated states like Bihar, West Bengal and Kerala.</li>
</ul>
</li>
<li>The multiple subdivisions across generations have reduced even the sub divisions to a very small size.</li>
</ul>
<p><a href="http://www.drishtiias.com/images/uploads/1607931728_Image3.jpg" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1607931728_Image3.jpg" style="display: block; margin-left: auto; margin-right: auto;" width="700" caption="false" /></a></p>
<div class="border-bg">
<p><strong>The Bhoodan and Gramdan Movements</strong></p>
<ul style="list-style-type: square;">
<li><strong>Vinoba Bhave,</strong> a disciple of <strong>Mahatma Gandhi,</strong> noticed the problems faced by the <strong>landless harijans </strong>in <strong>Pochampalli, Telangana.</strong></li>
<li>He led the movements in an attempt to bring about a<strong> &ldquo;non-violent revolution&rdquo;</strong> in India&rsquo;s land reforms programme. <br />
<ul style="list-style-type: circle;">
<li>The movements were about urging the landed classes to<strong> voluntarily surrender</strong> a part of their land to the landless giving it the name- Bhoodan Movement. <br />
<ul style="list-style-type: disc;">
<li>It began in <strong>1951.</strong></li>
</ul>
</li>
</ul>
</li>
<li>In response to the appeal by Vinoba Bhave, some land owning class agreed to voluntary donation of their some part of land.</li>
<li>The Central and State governments had provided the necessary assistance to Vinoba Bhave.</li>
<li>Later, the Bhoodan gave way to the Gramdan movement which began in 1952. <br />
<ul style="list-style-type: circle;">
<li>The objective of the Gramdan movement was to persuade landowners and leaseholders in each village to<strong> renounce their land rights</strong> and all the lands would become the property of a <strong>village association</strong> for an egalitarian redistribution and joint cultivation.
<ul style="list-style-type: disc;">
<li>Under this movement, a village was declared as Gramdan when at <strong>least 75% of its residents</strong> with <strong>51% of the land</strong> signified their <strong>approval in writing</strong> for Gramdan.</li>
</ul>
</li>
<li>The first village to come under Gramdan was <strong>Magroth, Haripur, Uttar Pradesh.</strong></li>
</ul>
</li>
</ul>
<p><strong>Successes of the Movement:</strong></p>
<ul style="list-style-type: square;">
<li>The movement was the first post independence movement that sought to bring social transformation through a movement and not through government legislation.</li>
<li>It created a <strong>moral ambience</strong> that put pressure on the big landlords.</li>
<li>It also stimulated the political activity among the peasants and landless, providing a fertile ground for political propaganda to organise peasants.</li>
</ul>
<p><strong>Drawbacks:</strong></p>
<ul style="list-style-type: square;">
<li>The land donated was mostly those which were unfertile or under litigation as a result although large areas of land was collected but little was distributed among the landless.</li>
<li>Gramdan movement was started in villages where class differentiation had not emerged, there was little difference in landholdings ownership, mainly in tribal areas. <br />
<ul style="list-style-type: circle;">
<li>But it was not successful in areas where there was disparity in landholdings.</li>
</ul>
</li>
<li>Further, the movement failed to realize its revolutionary potential.</li>
</ul>
<p><strong>Result:</strong></p>
<ul style="list-style-type: square;">
<li>The movements received widespread political patronage.<br />
<ul style="list-style-type: circle;">
<li>The movements reached their peak around 1969.</li>
<li>Several state governments passed laws aimed at Gramdan and Bhoodan.</li>
</ul>
</li>
<li>But after 1969 Gramdan and Bhoodan lost its importance due to the shift from being a purely voluntary movement to a government supported programme.<br />
<ul style="list-style-type: circle;">
<li>In 1967, after the withdrawal of Vinoba Bhave from the movement, it lost its mass base.</li>
</ul>
</li>
</ul>
</div>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>It has now been argued by the <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/niti-aayog-national-institution-for-transforming-india" target="_blank" rel="noopener"><strong>NITI Aayog</strong></a> and some sections of industry that land leasing should be adopted on a large scale to enable landholders with unviable holdings to lease out land for investment, thereby enabling greater income and employment generation in rural areas.</li>
<li>This cause would be facilitated by the consolidation of landholdings.</li>
<li>Modern land reforms measures such as <strong>land record digitisation</strong> must be accomplished at the earliest.</li>
</ul>
<h3>Conclusion</h3>
<ul style="list-style-type: square;">
<li>The pace of implementation of land reform measures has been slow. The objective of social justice has, however, been achieved to a considerable degree.</li>
<li>Land reform has a great role in the rural agrarian economy that is dominated by land and agriculture. New and innovative land reform measures should be adopted with new vigour to eradicate rural poverty.</li>
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		'article_id' => (int) 7175,
		'category_id' => (int) 21,
		'title' => 'Demand for Interest Waiver',
		'description' => '<h3>Why in News</h3>
<p>Recently, the <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/supreme-court-of-india" target="_blank" rel="noopener"><strong>Supreme Court (SC)</strong></a> has heard a batch of<strong> petitions seeking interest waiver</strong> during the <strong>loan moratorium period.</strong></p>
<ul style="list-style-type: square;">
<li>The <strong><a href="/important-institutions/drishti-specials-important-institutions-national-institutions/important-institutions-national-institution-reserve-bank-of-india" target="_blank" rel="noopener">Reserve Bank of India</a> (RBI)</strong> granted a<strong> six-month loan moratorium</strong> earlier this year, letting <strong>borrowers defer payments on loans</strong> and EMIs. The move was intended<strong> to provide borrowers relief</strong> during the <a href="/daily-updates/daily-news-analysis/coronaviruses" target="_blank" rel="noopener"><strong>Covid-19 pandemic.</strong></a></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Central Government's Stand:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Huge Cost:</strong> It revealed that <strong>a blanket waiver of interests on debts</strong> incurred by all borrowers for the moratorium period will mean forgoing an estimated <strong>over Rs. 6 lakh crore.</strong></li>
<li><strong>Possible Impact on Banks:</strong> If the <strong>banks were to bear this burden,</strong> then it would <strong>necessarily wipe out a substantial and a major part of their net worth,</strong> rendering most of the lenders unviable and raising a very serious question mark over their very survival.</li>
<li><strong>Deposits vs. Loans: Continued payment of interest to depositors</strong> is not only one of the most essential banking activities but is a huge responsibility that can never be compromised as most of the depositors are bound to be<strong> small depositors, pensioners etc. surviving on the interest from their deposits.</strong><br />
<ul style="list-style-type: disc;">
<li>In the Indian banking system, <strong>for every loan account, there are about 8.5 deposit accounts.</strong></li>
</ul>
</li>
<li><strong>Use of Financial Resources:</strong> There is<strong> a need to conserve and rationally use financial resources</strong> to deal with the economic effects of pandemic over an uncertain and indeterminate time frame.<br />
<ul style="list-style-type: disc;">
<li>It also<strong> pointed out the sector-specific relief measures</strong> taken by the Centre for the small and mid-sized business/MSMEs including from sectors such as restaurants and hotels.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Relief Measures Taken by the Centre:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>For Power Sector:</strong><br />
<ul style="list-style-type: disc;">
<li>The government had sanctioned over<strong> Rs. 90,800</strong> crore liquidity injection for the power distribution companies. This would <strong>enable them to pay their outstanding dues</strong> to power producers and transmission companies.</li>
</ul>
</li>
<li><strong>For Real Estate Sector:</strong><br />
<ul style="list-style-type: disc;">
<li>An advisory was issued allowing the extension of registration and completion dates of projects under Real Estate Regulatory Authorities by treating <strong>Covid-19</strong> as an event of <strong>force-majeure.</strong><br />
<ul style="list-style-type: disc;">
<li>From a contractual perspective, a force majeure clause provides<strong> temporary reprieve</strong> to a party from performing its obligations under a contract upon occurrence of a <strong>force majeure event.</strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>For Micro, Small and Medium Enterprises (MSME) Sector:</strong><br />
<ul style="list-style-type: disc;">
<li>An <a href="/daily-updates/daily-news-analysis/emergency-credit-line-guarantee-scheme-1#:~:text=250%20crore%20are%20eligible%20under,business%20purposes%20under%20its%20ambit." target="_blank" rel="noopener"><strong>emergency credit line (ECLGS) of up to Rs. 3 lakh crore</strong></a>, backed by 100% government guarantee to enable the MSMEs to get back to regular operations.</li>
</ul>
</li>
<li><strong>For Small Borrowers:</strong> <br />
<ul style="list-style-type: disc;">
<li>The Centre has decided that the <a href="/daily-updates/daily-news-analysis/compound-interest-waiver-on-moratorium-loans" target="_blank" rel="noopener"><strong>relief on waiver of compound interest</strong> </a>during the six-month moratorium period shall be limited to the most vulnerable category of borrowers who availed loan up to <strong>Rs. 2 crore.</strong><br />
<ul style="list-style-type: disc;">
<li>The RBI has classified<strong> &ldquo;big borrowers&rdquo;</strong> having the loan account of<strong> Rs. 1500 crores and above</strong> and rest as &ldquo;not big borrowers&rdquo;.</li>
</ul>
</li>
</ul>
</li>
<li><strong>For Big Borrowers:</strong> <br />
<ul style="list-style-type: disc;">
<li>The <strong><a href="/daily-updates/daily-news-analysis/k-v-kamath-committee-on-restructuring-of-loans" target="_blank" rel="noopener">Kamath Committee</a> set up by the RBI</strong> has recommended financial parameters for <strong>debt restructuring of 26 sectors</strong> affected by Covid-19.</li>
</ul>
</li>
<li><strong>Other Measures:</strong> <br />
<ul style="list-style-type: disc;">
<li>The <strong><a href="/to-the-points/paper3/insolvency-and-bankruptcy-code-3" target="_blank" rel="noopener">Insolvency &amp; Bankruptcy Code</a> (IBC)</strong> was <strong>suspended</strong> for a period of <strong>six months</strong> in order to protect companies in distress due to the pandemic being dragged into bankruptcy tribunals.</li>
<li>The <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/securities-and-exchange-board-of-india-sebi" target="_blank" rel="noopener"><strong>Security and Exchange Board of India</strong></a> (SEBI) has issued circulars to relax the <strong>&ldquo;recognition&rdquo;</strong> of defaults committed during moratorium.</li>
</ul>
</li>
</ul>
</li>
</ul>
<p><a href="https://www.thehindu.com/news/national/moratorium-sc-says-no-order-to-risk-economy-going-haywire/article33278078.ece" target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
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		'article_id' => (int) 7161,
		'category_id' => (int) 21,
		'title' => 'United Nations Investment Promotion Award 2020',
		'description' => '<h3>Why in News</h3>
<p>The<a href="/important-institutions/drishti-specials-important-institutions-international-institution/united-nations-1" target="_blank" rel="noopener"><strong> United Nations Conference on Trade and Development (UNCTAD)</strong></a> has <strong>declared &lsquo;Invest India&rsquo;</strong> as<strong> winner of the United Nations Investment Promotion Award 2020.</strong></p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>United Nations Investment Promotion Award:</strong> <br />
<ul style="list-style-type: circle;">
<li>It recognises and celebrates the outstanding achievements of the world&rsquo;s <strong>Investment Promotion Agencies (IPAs).</strong> Since <strong>2002,</strong> UNCTAD has organised these awards <strong>annually.</strong></li>
<li>The Awards also highlight the contributions of these organizations in raising private sector investment in sustainable development and in achieving the <a href="/to-the-points/paper3/sustainable-development-3" target="_blank" rel="noopener"><strong>Sustainable Development Goals (SDGs).</strong></a></li>
<li>The <strong>response of IPAs to the <a href="/daily-updates/daily-news-analysis/coronavirus-disease-named-covid-19#:~:text=The%20World%20Health%20Organisation%20(WHO,31st%20December%2C%202019)." target="_blank" rel="noopener">Covid-19 pandemic</a></strong> became the <strong>basis for the evaluation</strong> of the 2020 Award.</li>
<li><strong>Germany, South Korea and Singapore</strong> have been some of the <strong>past winners</strong> of the award.</li>
</ul>
</li>
<li><strong>Invest India:</strong> <br />
<ul style="list-style-type: circle;">
<li>It is the <strong>National Investment Promotion and Facilitation Agency of India</strong> and acts as the first point of reference for investors in India.</li>
<li>It is a<strong> non-profit venture set up in 2009</strong> under the Department for Promotion of Industry and Internal Trade, <strong>Ministry of Commerce and Industry,</strong> Government of India.</li>
<li><strong>UNCTAD highlighted good practices followed by Invest India,</strong> such as the Business Immunity Platform, Exclusive Investment Forum webinar series, its social media engagement and focus Covid response teams (such as business reconstruction, stakeholder outreach and supplier outreach) created as a response to the pandemic, in its publications.</li>
</ul>
</li>
<li><strong>Government Measures Related to Investment Promotion:</strong><br />
<ul style="list-style-type: circle;">
<li>India&rsquo;s attractiveness as an<a href="/daily-updates/daily-news-analysis/fdi-inflow" target="_blank" rel="noopener"><strong> FDI (Foreign Direct Investment)</strong> </a><strong>destination</strong> has surged in recent times. In 2019, it was<strong> among the top 10 countries attracting foreign funds,</strong> receiving billions of dollars in a variety of sectors, including services, technology, IT and telecom, and construction.</li>
<li>In <strong>2020, factors such as</strong> a swift response in combating the Covid crisis, favourable demographics, impressive mobile and internet penetration, massive consumption and technology uptake, played an important role in attracting the investments.</li>
<li>Launch of Schemes attracting investments, such as, <a href="/daily-updates/daily-news-analysis/export-promotion-council-for-technical-textiles" target="_blank" rel="noopener"><strong>National technical Textile Mission</strong></a>, <a href="/daily-updates/daily-news-analysis/pli-scheme-for-ten-more-sectors" target="_blank" rel="noopener"><strong>Production Linked Incentive Scheme</strong></a>, <a href="/daily-updates/daily-news-analysis/pradhan-mantri-kisan-sampada-yojana" target="_blank" rel="noopener"><strong>Pradhan Mantri Kisan SAMPADA Yojana</strong></a>, etc.<br />
<ul style="list-style-type: disc;">
<li>The government has elaborated upon the initiatives under the<a href="/daily-updates/daily-news-analysis/measures-on-atmanirbhar-bharat-3-0" target="_blank" rel="noopener"><strong> Atmanirbhar Bharat</strong> </a>to encourage investments in different sectors.</li>
</ul>
</li>
<li>As a part of its <a href="/daily-updates/daily-news-editorials/assessment-of-make-in-india" target="_blank" rel="noopener"><strong>Make in India initiative</strong></a> to promote domestic manufacturing, India deregulated FDI rules for several sectors over the last few years.</li>
<li>The Government of India continues to improve<strong> Ease of Doing Business</strong> in the country by releasing notifications highlighting measures to improve the business environment in India.<br />
<ul style="list-style-type: disc;">
<li>India <strong>ranked 63<sup>rd</sup> out of 190 countries</strong> (moved up by 14 spots) in <a href="/daily-updates/daily-news-analysis/ease-of-doing-business-2020" target="_blank" rel="noopener"><strong>Doing Business 2020: World Bank Report.</strong></a></li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>United Nations Conference on Trade and Development</strong></p>
<ul style="list-style-type: square;">
<li>UNCTAD is a<strong> permanent intergovernmental body</strong> established by the United Nations General Assembly in <strong>1964.</strong> Its headquarters are located in <strong>Geneva, Switzerland.</strong></li>
<li>It was established to <strong>promote development-friendly integration of developing countries into the world economy.</strong></li>
<li>It is a <strong>central agency</strong> that monitors performance of Investment promotion Agencies (IPAs) and identifies global best practices.</li>
<li>Some of the<strong> reports</strong> published by it are:<br />
<ul style="list-style-type: circle;">
<li>Trade and Development Report</li>
<li><a href="/daily-updates/daily-news-analysis/world-investment-report-unctad" target="_blank" rel="noopener"><strong>World Investment Report</strong></a></li>
<li><a href="/daily-updates/daily-news-analysis/global-investment-trend-monitor-report-unctad" target="_blank" rel="noopener"><strong>Global Investment Trend Monitor Report</strong></a></li>
<li>The Least Developed Countries Report</li>
<li>Information and Economy Report</li>
<li>Technology and Innovation Report</li>
<li>Commodities and Development Report</li>
</ul>
</li>
</ul>
</div>
<p><a href="https://pib.gov.in/PressReleseDetailm.aspx?PRID=1678902#:~:text=The%20United%20Nations%20(UNCTAD)%20has,at%20UNCTAD%20Headquarters%20in%20Geneva.&amp;text=In%20March%202020%2C%20UNCTAD%20constituted,IPAs%20response%20to%20the%20pandemic." target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
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	(int) 14 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7158,
		'category_id' => (int) 15,
		'title' => 'The Big Picture: India’s Renewable Energy Plan',
		'description' => '<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/JDZBY4K2kKY" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<h3>Why in News?</h3>
<p>Recently, the Prime Minister of India has announced about having huge renewable energy deployment plans for India for the next decade which are likely to generate business prospects of around $20 billion per year.</p>
<ul style="list-style-type: square;">
<li>Post the inauguration of the <strong>3<sup>rd</sup> Global Renewable Energy Investment Meeting and Expo (RE-Invest 2020),</strong> the PM addressed and invited the investors, developers and businesses to join India's renewable energy journey.</li>
<li>After the success of <a href="/daily-updates/daily-news-analysis/schemes-for-electronic-manufacturing" target="_blank" rel="noopener"><strong>Performance Linked Incentives (PLI)</strong></a> in electronics manufacturing, the government has decided to give similar incentives to high efficiency solar modules.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li>Dedicated <strong>Project Development Cells</strong> have been established to facilitate investors ensuring<a href="/daily-updates/daily-news-analysis/ease-of-doing-business-2020" target="_blank" rel="noopener"><strong> 'Ease of Doing Business'.</strong> </a></li>
<li>India's renewable power capacity is the<strong> fourth largest in the world</strong> and is growing at the fastest speed among all major countries.<br />
<ul style="list-style-type: circle;">
<li>India is a big market and a lot of countries are attracted towards it in terms of One Sun, One World, One Grid and <a href="/to-the-points/Paper2/year-end-review-2019-ministry-of-new-and-renewable-energy" target="_blank" rel="noopener"><strong>International Solar Alliance.</strong></a></li>
</ul>
</li>
<li>The renewable energy capacity in India is currently <strong>136 Giga Watts,</strong> which is about <strong>36% of its total capacity.</strong><br />
<ul style="list-style-type: circle;">
<li>Target for capacity increase is 450GW by 2030, increasing 25GW every year as we move forward.</li>
</ul>
</li>
<li>Per capita consumption of energy in India is quite low as compared globally.</li>
<li>Power sector, being primarily dependent on fossil fuels, is one of prime sources of air pollution.</li>
</ul>
<p><strong>Why Renewable Energy</strong></p>
<ul style="list-style-type: square;">
<li><strong>Sustainable:</strong> Energy generated from renewable sources will be cleaner and greener and more sustainable.</li>
<li><strong>Employment opportunities:</strong> Inclusion of a newer technology simply means more employment opportunities for the working population of the country.</li>
<li><strong>Market assurance:</strong> From the economy point of view, renewable sources provide the market and revenue assurance which no other resources can provide.</li>
<li><strong>Power supply:</strong> Providing 24*7 power supply to 100% of the households, sustainable form of transports are some of the goals that can only be achieved through sustainable power that comes from renewables.</li>
</ul>
<p><strong>Initiatives Taken</strong></p>
<ul style="list-style-type: square;">
<li><strong>PLI Scheme:</strong> The <a href="/daily-updates/daily-news-analysis/schemes-for-electronic-manufacturing" target="_blank" rel="noopener"><strong>Production Linked Incentive Scheme (PLI)</strong></a> scheme is an excellent initiative of the Government of India with respect to enhancing the manufacturing sector. <br />
<ul style="list-style-type: circle;">
<li>The scheme proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain including electronic components and semiconductor packaging.</li>
</ul>
</li>
<li><strong>Pradhan Mantri- Kisan Urja Suraksha evam Utthaan Mahabhiyan: <a href="/daily-updates/daily-news-analysis/new-website-of-ministry-of-new-and-renewable-energy#:~:text=KUSUM%20Scheme,-KUSUM%20stands%20for&amp;text=It's%20objective%20is%20to%20provide,plants%20in%20the%20rural%20areas" target="_blank" rel="noopener">PM- KUSUM</a></strong> aims to provide financial and water security to farmers through harnessing solar energy capacities of 25,750 MW by 2022.<br />
<ul style="list-style-type: circle;">
<li>Solarisation of water pumps is a step in distributed power providing at the doorstep of the consumer.</li>
</ul>
</li>
<li>The Ministry of New and Renewable Energy on its website also hosts <strong>Akshay Urja Portal </strong>and<strong> India Renewable Idea Exchange (IRIX) Portal.</strong><br />
<ul style="list-style-type: circle;">
<li>IRIX is a platform that promotes the exchange of ideas among energy conscious Indians and the Global community.</li>
</ul>
</li>
</ul>
<h3>India&rsquo;s Key Focus for Next Five Years</h3>
<ul style="list-style-type: square;">
<li><strong>The Twin Challenge:</strong> India has a twin challenge of providing more energy as well as cleaner energy to the masses in India.<br />
<ul style="list-style-type: circle;">
<li>It should focus on getting into the manufacturing of the solar panels under the <a href="/daily-updates/daily-news-analysis/atmanirbhar-bharat-and-economic-stimulus" target="_blank" rel="noopener"><strong>Atma Nirbhar Bharat</strong></a> initiative as the demand is to create jobs as well as supply decentralised energy to all the households in India.</li>
<li>Look and develop the entire supply chain of all the components beside the manufacturing sector.</li>
</ul>
</li>
<li><strong>Methanol and Biomass:</strong> Looking for other alternatives such as methanol based economy and biomass.<br />
<ul style="list-style-type: circle;">
<li>Bio-CNG vehicles with 20% blending in petrol is also a target the government has been chasing.</li>
<li>Conversion of energy from <a href="/summary-of-important-reports/action-plan-for-biomass-management" target="_blank" rel="noopener"><strong>Biomass</strong></a> is a considerable option as it will clean the cities as well as reduce our energy dependence. <br />
<ul style="list-style-type: disc;">
<li>Fuels produced from biomass have a high calorific value and are cleaner than traditional biomass.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Hydrogen based FCV:</strong> Hydrogen in technology is likely to change the landscape of renewables, shifting towards <a href="/loksabha-rajyasabha-discussions/the-big-picture-hydrogen-fuel-cell-for-vehicles#:~:text=Hydrogen%20in%20Fuel%20Cell%20Electric,electricity%20from%20only%20a%20battery.&amp;text=The%20amount%20of%20energy%20stored,of%20the%20hydrogen%20fuel%20tank" target="_blank" rel="noopener"><strong>Hydrogen Based Fuel Cells Vehicles</strong> </a>(FCV) is another area of focus.</li>
<li><strong>Grid Integration:</strong> It is the practice of developing efficient ways to deliver variable renewable energy (RE) to the grid.<br />
<ul style="list-style-type: circle;">
<li>Identifying the demands which are in tune with the characteristics of the renewables, focussing on characteristics of renewables mainly solar and wind and considering their variability as strength rather than weakness.</li>
</ul>
</li>
</ul>
<h3>Challenges with Renewable Energy</h3>
<ul style="list-style-type: square;">
<li><strong>Integration with the Main Grid:</strong> Integrating the renewables with the main grid is the area India needs to work upon.<br />
<ul style="list-style-type: circle;">
<li>To accelerate the uptake of renewables, storage and battery solutions is needed in large quantities.</li>
</ul>
</li>
<li><strong>Cost factor:</strong> Renewable resources are slightly more expensive than conventional sources.</li>
<li><strong>24*7 Power Supply:</strong> Sustainable, round-the-clock power supply along with the storage system is a big challenge ahead.</li>
<li><strong>Agricultural Sector:</strong> Much power is consumed in the agricultural sector. The challenge is to provide sufficient power and energy to every household and to the agricultural sector as well.</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Identification of areas:</strong> Renewable resources specially wind cannot be set up everywhere, they require specific location. <br />
<ul style="list-style-type: circle;">
<li>Identification of these specific locations, integrating them with the main grid and distribution of powers; A combination of these three is what will take India forward.</li>
</ul>
</li>
<li><strong>Exploration:</strong> More storage solutions need to be explored.</li>
<li><strong>Agriculture subsidy:</strong> Agricultural subsidy should be rectified in order to ensure that only the required amount of energy is consumed.</li>
<li><strong>Hydrogen fuel cell based vehicles and Electric vehicles:</strong> These are the most suitable options when it comes to shifting towards renewable sources of energy, that&rsquo;s where we need to work upon.</li>
</ul>
<h3>Conclusion</h3>
<ul style="list-style-type: square;">
<li>A well planned road map is needed, for which <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/niti-aayog-national-institution-for-transforming-india" target="_blank" rel="noopener"><strong>NITI Aayog</strong></a> is coming up with Energy Vision 2035 to achieve India's clean energy goals.</li>
<li>Diversified energy mix is what India needs to focus on, no doubt solar and wind have a lot of potential, Hydrogen would be a game changer in Indian energy transition space.<br />
<ul style="list-style-type: circle;">
<li>Renewable sources of energy are expected to replace fossil fuels by 2050.</li>
</ul>
</li>
<li>India should be working on areas like investment in infrastructure, capacity building and better integration in the near and immediate future.</li>
</ul>',
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	(int) 15 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7141,
		'category_id' => (int) 21,
		'title' => 'Monetary Policy: RBI',
		'description' => '<h3>Why in News</h3>
<p>Recently, the <a href="/daily-updates/daily-news-analysis/repo-rate-unchanged-1" target="_blank" rel="noopener"><strong>Monetary Policy Committee</strong></a> (MPC) of the <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/important-institutions-national-institution-reserve-bank-of-india" target="_blank" rel="noopener"><strong>Reserve Bank of India</strong> </a>(RBI) has left the<a href="/daily-updates/daily-news-analysis/repo-rate-unchanged-1" target="_blank" rel="noopener"><strong> repo rate unchanged</strong></a> and <strong>maintained an <a href="/daily-updates/daily-news-analysis/rbi-monetary-policy-1" target="_blank" rel="noopener">accommodative policy stance</a></strong> as it prioritised support for the economy's recovery over inflation amid the <a href="/daily-updates/daily-news-analysis/covid-19-now-pandemic-who" target="_blank" rel="noopener"><strong>Covid-19 pandemic.</strong></a></p>
<ul style="list-style-type: square;">
<li>It has also announced various other <a href="/daily-updates/daily-news-analysis/liquidity-measures-extended-for-banks" target="_blank" rel="noopener"><strong>liquidity management measures</strong></a> and steps to <strong>improve<a href="/daily-updates/daily-news-analysis/fraud-oversight-wing" target="_blank" rel="noopener"> regulatory oversight</a></strong> of the financial system.</li>
<li>The MPC is a <strong>statutory and institutionalized framework</strong> under the <strong>RBI Act 1934,</strong> for maintaining price stability, while keeping in mind the objective of growth. It <strong>determines the policy interest rate</strong> (repo rate)<strong> required to achieve the inflation target</strong> (4%).</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Repo Rate:</strong><br />
<ul style="list-style-type: circle;">
<li>The MPC has kept the RBI&rsquo;s key lending rate, the <strong>repo rate, steady at 4%</strong> and <strong>reverse repo rate </strong>at<strong> 3.35%.</strong><br />
<ul style="list-style-type: disc;">
<li>The <strong>repo rate,</strong> also known as the <strong>policy rate,</strong> is the interest rate at which the RBI provides loans to banks.</li>
<li>The <strong>reverse repo</strong> is the rate at which commercial banks park their money with the central bank.</li>
</ul>
</li>
<li>It has left key policy rates <strong>unchanged for the third time in a row</strong> in the wake of persistently high retail inflation, even as it pointed to the economy, which contracted in the last two quarters, showing signs of early recovery.</li>
<li>The central bank has <strong>slashed the repo rate by 115 basis points</strong> (bps) <strong>since late March</strong> to cushion the economy from the fallout of the Covid-19 and the resultant <a href="/daily-updates/daily-news-editorials/covid-19-and-lockdown" target="_blank" rel="noopener"><strong>lockdowns.</strong></a><br />
<ul style="list-style-type: disc;">
<li>Generally, <strong>a low repo rate translates into low cost loans</strong> for the general masses.</li>
</ul>
</li>
</ul>
</li>
<li><strong>GDP Projections:</strong><br />
<ul style="list-style-type: circle;">
<li>The real <strong><a href="/daily-updates/daily-news-analysis/gdp-decreases-to-11-year-low" target="_blank" rel="noopener">Gross Domestic Product</a></strong>&nbsp;(GDP) for FY 2020-21 has been projected at <strong>-7.5%.</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Real GDP</strong> is an <strong>inflation-adjusted measure</strong> that reflects the value of all goods and services produced by an economy in a given year.</li>
</ul>
</li>
<li>However, with the country gradually opening up after the lockdown and the improvement in activity in the second quarter, GDP is expected to<strong> expand by 0.1% in the December quarter</strong> and<strong> 0.7% in the March quarter.</strong><br />
<ul style="list-style-type: disc;">
<li><a href="/daily-updates/daily-news-analysis/gdp-contracted-by-23-9-in-first-quarter" target="_blank" rel="noopener"><strong>GDP growth contracted by 23.9%</strong></a> in the Q1 of 2020 compared to the same period (April-June) in 2019.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Inflation:</strong><br />
<ul style="list-style-type: circle;">
<li><a href="/daily-updates/daily-news-editorials/return-of-inflation#:~:text=Inflation%20refers%20to%20the%20rise,transport%2C%20consumer%20staples%2C%20etc.&amp;text=Inflation%20is%20indicative%20of%20the,unit%20of%20a%20country's%20currency." target="_blank" rel="noopener"><strong>Inflation</strong></a> still remains a concern for policymakers as the <a href="/daily-updates/daily-news-editorials/india-s-food-processing-industry-1" target="_blank" rel="noopener"><strong>supply-side bottlenecks</strong></a> <strong>had fuelled inflation and large margins were being charged</strong> to the consumer.</li>
<li><strong>Cost push pressure or cost push inflation</strong> continue to impinge on core inflation, which has not changed much and could firm up as economic activity normalises and demand picks up.<br />
<ul style="list-style-type: disc;">
<li><strong>Cost-push Inflation:</strong> Spurt in production prices of certain commodities also causes inflation as the price of the final product increases.</li>
<li><strong>Core Inflation:</strong> It <strong>excludes volatile goods</strong> from the basket of commodities tracking <strong>Headline Inflation.</strong> These volatile commodities mainly comprise<strong> food and beverages</strong> (including vegetables) and <strong>fuel and light (crude oil).</strong></li>
</ul>
</li>
<li>RBI <strong>projected retail inflation to average 6.8% in Q3,</strong> before moderating to 5.8% in Q4 and 5.2% to 4.6% in the first half of the fiscal year 2021-22, with risks broadly balanced.</li>
<li>This <strong>constrains monetary policy at the current juncture from using the space available to act in support of growth.</strong> At the same time, the signs of recovery are far from being broad-based and are dependent on sustained policy support.</li>
<li><a href="/daily-updates/daily-news-analysis/inflation-data-august-2020" target="_blank" rel="noopener"><strong>Consumer Price Inflation</strong></a> (CPI) at a<strong> six-year high of 7.6% in October,</strong> which is well above its medium target level of 4% within a band of plus/minus 2%.</li>
</ul>
</li>
<li><strong>Accommodative Stance:</strong><br />
<ul style="list-style-type: circle;">
<li>The MPC had decided to <strong>continue with the accommodative stance</strong> as long as necessary, at least during the current financial year and into the next financial year, to <strong>revive growth on a durable basis and mitigate the impact of Covid-19</strong> on the economy.</li>
</ul>
</li>
<li><strong>Risk-based Internal Audit Norms:</strong><br />
<ul style="list-style-type: circle;">
<li>RBI has announced the introduction of <strong>risk-based internal audit norms</strong> for large <a href="/daily-updates/daily-news-analysis/urban-co-operative-banks" target="_blank" rel="noopener"><strong>Urban Cooperative Banks</strong></a> (UCBs) and <a href="/daily-updates/daily-news-analysis/liquidity-boost-to-nbfcs" target="_blank" rel="noopener"><strong>Non-Banking Financial Companies</strong></a> (NBFCs), as part of measures aimed at <strong>improving governance and assurance functions</strong> at supervised entities.</li>
<li>The RBI also moved to harmonise the guidelines on the <strong>appointment of statutory auditors</strong> for commercial banks, UCBs and NBFCs in order <strong>to improve the quality of financial reporting.</strong></li>
<li>It had been decided <strong>to put in place transparent criteria for the declaration of dividends by different categories</strong> of NBFCs.</li>
<li>With a view to deepening financial markets,<a href="/daily-updates/daily-news-analysis/recapitalisation-of-rrbs" target="_blank" rel="noopener"><strong> regional rural banks</strong></a> would be allowed to access the <strong>Liquidity Adjustment Facility</strong> (LAF) and <strong>Marginal Standing Facility</strong> (MSF) of the RBI, as also the call/notice money market.<br />
<ul style="list-style-type: disc;">
<li><strong>LAF</strong> is a tool used in monetary policy by the RBI, that allows banks to borrow money through repurchase agreements (repos) or for banks to make loans to the RBI through reverse repo agreements.</li>
<li><strong>MSF</strong> is a window for scheduled banks to borrow overnight from the RBI in an emergency situation when interbank liquidity dries up completely. Under interbank lending, banks lend funds to one another for a specified term.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Digital Payment Security Controls Directions:</strong><br />
<ul style="list-style-type: circle;">
<li>To significantly improve the ecosystem of digital payment channels with robust security and convenience for users, the RBI has <strong>proposed to issue <a href="/summary-of-important-reports/niti-aayog-digital-payments-trends-issues-and-opportunities" target="_blank" rel="noopener">Digital Payment</a> Security Controls directions for the regulated entities.</strong></li>
<li>These directions will <strong>contain requirements for robust governance, implementation and monitoring of certain minimum standards</strong> on common security controls for channels like Internet and mobile banking and card payments.</li>
</ul>
</li>
<li><strong>Targeted Long-Term Repo Operations:</strong><br />
<ul style="list-style-type: circle;">
<li>RBI has decided to<strong> bring the 26 stressed sectors identified by the<a href="/daily-updates/daily-news-analysis/k-v-kamath-committee-on-restructuring-of-loans" target="_blank" rel="noopener"> Kamath Committee</a> within the ambit of sectors eligible under on tap Targeted <a href="/daily-updates/daily-news-analysis/long-term-reverse-repo-operation#:~:text=Long%20Term%20Reverse%20Repo%20Operation%20(LTRO)%20is%20a%20mechanism%20to,of%20credit%20to%20the%20economy.&amp;text=Funds%20through%20LTRO%20are%20provided,rate%20of%20one%20day%20repo." target="_blank" rel="noopener">Long-Term Repo Operations</a></strong> (TLTRO), providing <strong>more liquidity</strong> to the slowdown-hit economy.<br />
<ul style="list-style-type: disc;">
<li>The RBI had announced the TLTRO on Tap scheme in <strong>October 2020,</strong> which will be available up to <strong>31<sup>st</sup> March 2021.</strong></li>
<li>Accordingly, it was decided to conduct on tap TLTRO with <strong>tenors of up to three years for a total amount of up to Rs. 1 lakh crore</strong> at a floating rate linked to the policy repo rate with flexibility to enhance the amount and period after a review of the response to the scheme.</li>
</ul>
</li>
<li>Under TLTRO, banks can<strong> invest in specific sectors through debt instruments</strong> like <strong>corporate bonds, commercial papers and non-convertible debentures</strong> (NCDs) to push the credit flow in the economy.</li>
<li>As part of the <a href="/daily-updates/daily-news-analysis/measures-on-atmanirbhar-bharat-3-0" target="_blank" rel="noopener"><strong>Aatmanirbhar Bharat Package 3.0</strong></a>, the Centre launched the <a href="/daily-updates/daily-news-analysis/emergency-credit-line-guarantee-scheme-1" target="_blank" rel="noopener"><strong>Emergency Credit Line Guarantee Scheme 2.0</strong></a> (ECLGS 2.0).<br />
<ul style="list-style-type: disc;">
<li>Under it, the corpus of Rs. 3 lakh crore of existing ECLGS 1.0 was extended to provide 100% guaranteed collateral-free additional credit to entities in 26 stressed sectors identified by the Kamath panel.</li>
</ul>
</li>
<li>According to the RBI,<strong> banks are encouraged to synergise the two schemes by availing funds from RBI under on tap TLTRO and seek guarantee under ECLGS 2.0</strong> to provide credit support to stressed sectors.</li>
</ul>
</li>
</ul>
<p><a href="https://www.thehindu.com/business/Economy/rbi-keeps-key-rates-unchanged/article33246372.ece#:~:text=The%20RBI%20also%20brightened%20its,it%20had%20forecast%20in%20October." target="_blank" rel="noopener"><strong>Source: TH</strong></a></p>',
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	(int) 16 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7132,
		'category_id' => (int) 21,
		'title' => 'Export Promotion Council for Technical Textiles',
		'description' => '<h3>Why in News</h3>
<p>The Ministry of Textiles has invited proposals for the constitution of a dedicated<strong> Export Promotion Council</strong> (EPC) for Technical Textiles.</p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li>The constitution of an Export Promotion Council for Technical Textiles is <strong>a part of the <a href="/daily-updates/daily-news-analysis/national-technical-textiles-mission" target="_blank" rel="noopener">National Technical Textiles Mission.</a></strong><br />
<ul style="list-style-type: circle;">
<li>The Council shall abide by all directions of the Central Government in respect of promotion and development of international trade.</li>
</ul>
</li>
<li><strong>National Technical Textiles Mission:</strong><br />
<ul style="list-style-type: circle;">
<li>It was approved with <strong>a total outlay of Rs. 1480 crore</strong> in February 2020.</li>
<li>It aims to position the country as a <strong>global leader in technical textiles</strong> and<strong> increase the use</strong> of technical textiles in the <strong>domestic market.</strong></li>
<li>It aims at taking <strong>domestic market</strong> size to<strong> USD 40 billion to USD 50 billion by 2024.</strong></li>
<li>It will be implemented for<strong> four years starting from 2020-2021</strong> and has <strong>four components:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>First component:</strong> It focuses on <strong>research, development and innovation</strong> with an outlay of <strong>Rs. 1,000 crores.</strong><br />
<ul style="list-style-type: disc;">
<li>The research will be at both<strong> fibre level and application-based</strong> in geo, agro, medical, sports and mobile textiles and development of <strong>biodegradable</strong> technical textiles.</li>
<li>Research activities will also focus on<strong> the development of indigenous machinery</strong> and process equipment.</li>
</ul>
</li>
<li><strong>Second component:</strong> It is for the promotion and <strong>development of the market</strong> for technical textiles.</li>
<li><strong>Third component:</strong> It focuses on <strong>export promotion</strong> so that technical textile exports from the country reach from Rs.14,000 crores to Rs. 20,000 crores by <strong>2021-2022</strong> and will ensure <strong>10% average growth</strong> every year till the Mission ends.</li>
<li><strong>Fourth component:</strong> It focuses on education, training and skill development.</li>
</ul>
</li>
<li>A<strong> Mission Directorate</strong> is operational in the <strong>Ministry of Textiles</strong> for implementation of the Mission.</li>
</ul>
</li>
<li><strong>Data on the Indian Technical Textiles Segment:</strong><br />
<ul style="list-style-type: circle;">
<li>It is estimated at <strong>16 billion USD</strong> which is approximately <strong>6% of the 250 billion USD global technical textiles market.</strong></li>
<li>The penetration level of technical textiles in India varies between<strong> 5% and 10% against the level of 30% to 70%</strong> in developed countries.</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Technical Textiles</strong></p>
<ul style="list-style-type: square;">
<li>Technical textiles are textiles materials and products manufactured<strong> primarily for technical performance and functional properties</strong> rather than aesthetic characteristics.</li>
<li>Technical textiles are <strong>functional fabrics</strong> that have applications across various industries including automobiles, civil engineering and construction, agriculture, healthcare, industrial safety (fire proof jackets), personal protection (bullet proof jackets, high altitude combat gear), space applications etc.</li>
<li>Based on usage, there are <strong>12 technical textile segments:</strong><br />
<ul style="list-style-type: circle;">
<li>Agrotech, Meditech, Buildtech, Mobiltech, Clothtech, Oekotech, Geotech, Packtech, Hometech, Protech, Indutech and Sportech.</li>
</ul>
</li>
<li><strong>For example,</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Mobiltech</strong> refers to <strong>products in vehicles</strong> such as seat belts and airbags, airplane seats.</li>
<li><strong>Geotech,</strong> which is incidentally the fastest growing segment, used to<strong> hold back soil,</strong> etc.</li>
</ul>
</li>
</ul>
</div>
<p><a href="https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1677979" target="_blank" rel="noopener"><strong>Source:PIB</strong></a></p>',
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	(int) 17 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7118,
		'category_id' => (int) 21,
		'title' => 'Fall in Manufacturing PMI',
		'description' => '<p>The <a href="/daily-updates/daily-news-analysis/purchasing-manager-s-index" target="_blank" rel="noopener"><strong>Purchasing Managers&rsquo; Index</strong></a> (PMI) for India&rsquo;s manufacturing shows that the <strong>sector&rsquo;s expansion</strong> as well as the <strong>pace of new orders</strong> slowed down while employment declined further<strong> as business optimism faded</strong> during the month of November.</p>
<ul style="list-style-type: square;">
<li>PMI is an <strong>indicator of business activity</strong> in the <strong>manufacturing and services sectors.</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Data Analysis:</strong><br />
<ul style="list-style-type: circle;">
<li>India&rsquo;s <strong>Purchasing Managers&rsquo; Index (PMI)</strong> fell to a three-month low of 56.3 in November from an over 12-year high of 58.9 in October. <br />
<ul style="list-style-type: disc;">
<li>In PMI parlance, a print <strong>above 50 means expansion,</strong> while a score below that <strong>denotes contraction.</strong></li>
<li>Although India&rsquo;s PMI is in the expansion zone, the <strong>ongoing rise in Covid cases</strong> in some states and<strong> uncertainty about regional lockdowns</strong> is denting confidence.</li>
</ul>
</li>
<li>There were <strong>slower increases</strong> in factory orders, exports, buying levels and output.</li>
<li>Indian manufacturers are <strong>refraining from hiring.</strong> Employment <strong>fell in November</strong> as companies observed <strong>social distancing guidelines.</strong></li>
</ul>
</li>
<li><strong>Calculation of PMI:</strong><br />
<ul style="list-style-type: circle;">
<li>It is a survey-based measure that <strong>asks the respondents about changes in their perception about key business variables</strong> as compared with the previous month.</li>
<li>The <strong>purpose</strong> of the PMI is to provide information about current and future business conditions to company decision-makers, analysts, and investors.</li>
<li>It is <strong>calculated separately</strong> for the <strong>manufacturing and services sectors</strong> and then a composite index is also constructed.</li>
<li>The PMI is a number from <strong>0 to 100.</strong><br />
<ul style="list-style-type: disc;">
<li>PMI <strong>above 50 represents an expansion</strong> when compared to the previous month;</li>
<li>PMI <strong>under 50 represents a contraction,</strong> and</li>
<li>A reading <strong>at 50</strong> indicates <strong>no change.</strong></li>
</ul>
</li>
<li>If PMI of the previous month is higher than the PMI of the current month (as is the case mentioned above), it represents that the<strong> economy is contracting.</strong></li>
<li>It is usually released at the<strong> start of every month.</strong> It is, therefore, considered a <strong>good leading indicator</strong> of economic activity.</li>
<li>PMI is <strong>compiled by IHS Markit</strong> for more than 40 economies worldwide. IHS Markit is a global leader in information, analytics and solutions for the major industries and markets that drive economies worldwide.</li>
<li>As the official data on industrial output, manufacturing and GDP growth <strong>comes much later,</strong> PMI helps to make informed decisions at an earlier stage.</li>
<li>It is <strong>different from the <a href="/daily-updates/daily-news-analysis/contraction-in-august-core-industry-output-iip" target="_blank" rel="noopener">Index of Industrial Production (IIP)</a>,</strong> which also gauges the level of activity in the economy.</li>
</ul>
</li>
</ul>
<p><a href="https://www.thehindu.com/business/Industry/pmi-shows-manufacturing-losing-steam/article33224408.ece" target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
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		'article_id' => (int) 7096,
		'category_id' => (int) 21,
		'title' => 'Mission COVID Suraksha',
		'description' => '<h3>Why in News</h3>
<p>The Government of India has announced the<strong> stimulus package of Rs. 900 crore</strong> for the <strong>Mission COVID Suraksha,</strong> the Indian Covid-19 Vaccine Development Mission, which will <strong>help the development process of the vaccine candidates.</strong></p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About:</strong><br />
<ul style="list-style-type: circle;">
<li>Mission COVID Suraksha is India&rsquo;s <strong>targeted effort to enable the development of indigenous, affordable and accessible vaccines</strong> for the country and will complement the ongoing mission of <a href="/daily-updates/daily-news-editorials/atma-nirbhar-bharat-abhiyan-challenges" target="_blank" rel="noopener"><strong>Atmanirbhar Bharat.</strong></a></li>
<li>The Centre had announced this package during the <a href="/daily-updates/daily-news-analysis/economic-stimulus-iii" target="_blank" rel="noopener"><strong>third economic stimulus.</strong></a></li>
<li>The Mission with its <strong>end-to-end focus from preclinical development through clinical development and manufacturing and regulatory facilitation for deployment,</strong> would consolidate all available and funded resources towards accelerated product development.</li>
</ul>
</li>
<li><strong>Grant:</strong><br />
<ul style="list-style-type: circle;">
<li>Phase-I of the Mission has been allotted <strong>Rs. 900 Crore for a period of 12 months.</strong></li>
<li>The grant will be provided to the<strong> Department of Biotechnology</strong> (DBT) for Research and Development (R&amp;D) of Indian <a href="/daily-updates/daily-news-analysis/coronavirus-disease-named-covid-19" target="_blank" rel="noopener"><strong>Covid-19</strong></a> vaccines.</li>
</ul>
</li>
<li><strong>Stakeholders:</strong><br />
<ul style="list-style-type: circle;">
<li>It will be<strong> led by DBT</strong> and implemented by a dedicated <strong>Mission Implementation Unit</strong> at the <a href="/daily-updates/daily-news-editorials/making-india-a-biotech-hub" target="_blank" rel="noopener"><strong>Biotechnology Industry Research Assistance Council</strong></a> (BIRAC).</li>
<li>The existing activities under <a href="/daily-updates/daily-news-analysis/national-biopharma-mission#:~:text=The%20National%20Biopharma%20Mission%20(NBM,funded%20by%20World%20Bank%20loan." target="_blank" rel="noopener"><strong>National Bio Pharma Mission</strong> </a>(NBM) and<strong> Ind-CEPI Mission</strong> will provide complementary strengths to this Mission.<br />
<ul style="list-style-type: disc;">
<li>The DBT is supporting the implementation of the Ind-CEPI Mission, &ldquo;Epidemic preparedness through rapid vaccine development: Support of Indian vaccine development aligned with the global initiative of the<a href="/daily-updates/daily-news-analysis/thsti-part-of-vaccine-assessment-project" target="_blank" rel="noopener"><strong> Coalition for Epidemic Preparedness Innovations</strong></a> (CEPI)&rdquo;.</li>
<li>The Ind-CEPI Mission was approved in<strong> March 2019.</strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>Objectives:</strong><br />
<ul style="list-style-type: circle;">
<li>Accelerating pre-clinical and clinical development.</li>
<li>Licensure of Covid-19 vaccine candidates that are currently in clinical stages or ready to enter the clinical stage of development.</li>
<li>Establishing clinical trial sites.</li>
<li>Strengthening the existing central laboratories and suitable facilities for animal studies, production facilities and other testing facilities to support the vaccine development.</li>
<li>Supporting the development of common harmonized protocols, training, data management systems, regulatory submissions, internal and external quality management systems and accreditations.</li>
<li>Supporting capabilities for process development, cell line development and manufacturing of GMP batches for animal toxicology studies and clinical trials.</li>
<li>Developing suitable<strong> Target Product Profile</strong> so that vaccines being introduced through the mission have preferred characteristics applicable to India.</li>
</ul>
</li>
<li><strong>Vaccine Candidates:</strong><br />
<ul style="list-style-type: circle;">
<li>A total of<strong> 10 vaccine candidates have been supported by DBT</strong> so far at both academia and industry and as on date and<strong> 5 vaccine candidates are in human trials.</strong><br />
<ul style="list-style-type: disc;">
<li><a href="/daily-updates/daily-news-analysis/phase-ii-iii-clinical-trials-of-covishield" target="_blank" rel="noopener"><strong>Covishield</strong></a>: The <a href="/daily-updates/daily-news-analysis/pneumococcal-conjugate-vaccine-1" target="_blank" rel="noopener"><strong>Serum Institute of India</strong></a> (SII) is conducting the <a href="/to-the-points/Paper2/drugs-and-clinical-trials-rules-2019" target="_blank" rel="noopener"><strong>phase-3</strong></a> trial of the <strong>Oxford-Astrazeneca</strong> Covid-19 vaccine.</li>
<li><a href="/daily-updates/daily-news-analysis/covaxin-approved-for-human-clinical-trials" target="_blank" rel="noopener"><strong>Covaxin</strong></a>: The indigenously developed <strong>Bharat Biotech</strong> and the <a href="/daily-updates/daily-news-analysis/icmr-to-test-for-community-transmission-of-covid-19" target="_blank" rel="noopener"><strong>Indian Council of Medical Research</strong> </a>(ICMR) vaccine has already started the phase III clinical trial.</li>
<li><a href="/daily-updates/daily-news-analysis/clinical-trial-of-covid-19-vaccine-zycov-d" target="_blank" rel="noopener"><strong>ZyCoV-D</strong></a>: Indigenously developed vaccine by<strong> Zydus Cadila</strong> has completed the phase-2 clinical trial in the country.</li>
<li><a href="/daily-updates/daily-news-analysis/russian-covid-vaccine-sputnik-v" target="_blank" rel="noopener"><strong>Sputnik V</strong></a>: The combined phase 2 and 3 clinical trials of the<strong> Russian Covid-19 vaccine</strong> Sputnik V in India are about to get started.</li>
<li><a href="/daily-updates/daily-news-analysis/pfizer-s-covid-19-vaccine-candidate#:~:text=India%20is%20preparing%20to%20administer,vaccine%20candidates%20in%20the%20future." target="_blank" rel="noopener"><strong>BNT162b2</strong></a>: India is focusing on training for conducting phase II and III human clinical trials of the <strong>Pfizer's Covid-19 vaccine candidate</strong> along lines of India&rsquo;s regulatory mechanism.</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Clinical Trials</strong></p>
<ul style="list-style-type: square;">
<li>It is a <strong>systematic study to generate data for discovering or verifying the clinical and pharmacological profile</strong> (including pharmacodynamic and pharmacokinetic) or <strong>adverse effects</strong> of a new drug on humans.</li>
<li>It is the <strong>only way of establishing the safety and efficacy</strong> of any drug before its introduction in the market for human use and is preceded by animal trials where the efficacy and side effects are observed in animals and an estimated drug dose is established.</li>
<li>Clinical trials of drugs developed in India<strong> have to undergo all four phases of trials in India.</strong><br />
<ul style="list-style-type: circle;">
<li>Phase I or clinical pharmacology trials or &ldquo;first in man&rdquo; study.</li>
<li>Phase II or exploratory trials.</li>
<li>Phase III or confirmatory trials.</li>
<li>Phase IV trials or post-marketing phase.</li>
</ul>
</li>
</ul>
</div>
<p><a href="https://www.pib.gov.in/PressReleasePage.aspx?PRID=1676998" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
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		'category_id' => (int) 21,
		'title' => 'Cabinet Approves Capital Infusion into NIIF',
		'description' => '<h3>Why in News</h3>
<p>Recently, the Union Cabinet has given its approval to the proposal for equity infusion by the Government of<strong> Rs. 6000 crores </strong>in<strong> NIIF Debt Platform</strong> - sponsored by the <strong>National Investment and Infrastructure Fund (NIIF).</strong></p>
<ul style="list-style-type: square;">
<li>This was <strong>one of the twelve key measures</strong> made by the Union Minister for Finance as part of <a href="/daily-updates/daily-news-analysis/atmanirbhar-bharat-and-economic-stimulus" target="_blank" rel="noopener"><strong>Government of India&rsquo;s stimulus to the economy</strong></a>, under <a href="/daily-updates/daily-news-analysis/atmanirbhar-bharat-and-economic-stimulus" target="_blank" rel="noopener"><strong>Atmanirbhar Bharat.</strong></a></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Background:</strong><br />
<ul style="list-style-type: circle;">
<li>As per the <a href="/daily-updates/daily-news-analysis/national-infrastructure-pipeline-1" target="_blank" rel="noopener"><strong>National Infrastructure Pipeline</strong></a> (NIP), investment in infrastructure sector is targeted at <strong>Rs. 111 lakh crore over the next 5 years</strong> across various sub-sectors, creating substantial need for debt financing.</li>
<li>It would require at least <strong>Rs. 60 to 70 lakh</strong> crores in <strong>debt financing.</strong></li>
<li>Current environment requires well-capitalized specialized infrastructure focused financial institutions, such as <strong>NIIF Debt Platform</strong> being <strong>developed by NIIF</strong> which can focus on lending across the project life cycle with a strong capital base and expertise driven approach.</li>
</ul>
</li>
<li><strong>The current approval of equity infusion is subject to two conditions:</strong><br />
<ul style="list-style-type: circle;">
<li>Out of the proposed amount, only <strong>Rs. 2,000</strong> crore would be allocated during the current year <strong>2020-21.</strong><br />
<ul style="list-style-type: disc;">
<li>However, in view of the unprecedented financial situation and availability of limited fiscal space due to the prevailing <a href="/daily-updates/daily-news-editorials/covid-19-and-india-1" target="_blank" rel="noopener"><strong>Covid-19</strong></a>, the proposed amount may be disbursed <strong>only if there is readiness and demand for debt raising.</strong></li>
</ul>
</li>
<li><strong>NIIF</strong> will take all necessary steps to use the <strong>equity investments from Domestic and Global pension funds and sovereign wealth funds</strong> expeditiously.</li>
</ul>
</li>
<li><strong>NIIF Debt Platform: </strong><br />
<ul style="list-style-type: circle;">
<li><strong>It comprises of:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Aseem Infrastructure Finance Limited (AIFL):</strong> It is an IFC (Infrastructure Finance Company), established with the aim of playing a transformative role in growth of Indian infrastructure debt financing.</li>
<li><strong>NIIF Infrastructure Finance Limited (NIIF-IFL):</strong> It was incorporated as an <strong>Infrastructure Debt Fund (IDF)</strong> in 2014 for financing operating infrastructure projects.</li>
</ul>
</li>
<li><strong>Contribution:</strong> It is expected to contribute nearly<strong> Rs. 1 lakh crores</strong> in debt to the infrastructure sector over the<strong> next 5 years.</strong></li>
<li><strong>Impact :</strong><br />
<ul style="list-style-type: disc;">
<li>It will act as a<strong> catalyst in attracting more investments</strong> into the infrastructure sector as envisaged in <strong>NIP.</strong></li>
<li>The process will also<strong> help relieve exposure of banks to infrastructure projects</strong> and <strong>free up space for new green-field projects.</strong></li>
<li>It will <strong>enhance liquidity of infrastructure assets</strong> and<strong> lower the risks.</strong></li>
<li>It is expected that a <strong>well-capitalized, well-funded and well-governed NIIF debt Platform</strong> can play a major role in <strong>infrastructure financing and development of the bond market in India</strong> by acting as an intermediary between the bond markets and infrastructure projects and companies.</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>National Investment and Infrastructure Fund</strong></p>
<ul style="list-style-type: square;">
<li>NIIF is a<strong> government-backed entity</strong> established to provide long-term capital to the country&rsquo;s infrastructure sector.
<ul style="list-style-type: circle;">
<li>The <strong>Indian government has a 49% stake</strong> in NIIF with the rest held by foreign and domestic investors.</li>
<li>With the Centre&rsquo;s significant stake, NIIF is considered <strong>India&rsquo;s quasi-sovereign wealth fund.</strong></li>
</ul>
</li>
<li>It was set up in<strong> December 2015</strong> as a <a href="/daily-updates/daily-news-analysis/a-special-fund-for-housing-projects" target="_blank" rel="noopener"><strong>Category-II Alternate Investment Fund.</strong></a></li>
<li>Across its <strong>three funds viz. Master Fund, Fund of Funds, and Strategic Opportunities Fund,</strong> it manages over USD 4.3 billion of capital.</li>
<li>Its registered office is in <strong>New Delhi.</strong></li>
</ul>
<p><strong>Terms</strong></p>
<ul style="list-style-type: square;">
<li><strong>Debt financing:</strong><br />
<ul style="list-style-type: circle;">
<li>When a company borrows money to be paid back at a future date with interest, it is known as debt financing.</li>
</ul>
</li>
<li><strong>Equity:</strong><br />
<ul style="list-style-type: circle;">
<li>Equity represents the shareholders&rsquo; stake in the company, identified on a company's balance sheet.</li>
</ul>
</li>
<li><strong>Sovereign wealth fund:</strong><br />
<ul style="list-style-type: circle;">
<li>A sovereign wealth fund is a state-owned investment fund composed of money generated by the government, often derived from a country's surplus reserves.</li>
</ul>
</li>
<li><strong>Pension fund:</strong><br />
<ul style="list-style-type: circle;">
<li>A pension fund is any plan, fund, or scheme which provides retirement income.</li>
</ul>
</li>
<li><strong>Bond:</strong><br />
<ul style="list-style-type: circle;">
<li>It is a <strong>fixed income instrument</strong> that represents a loan made by an investor to a borrower. In simpler words, a bond acts as a contract between the investor and the borrower. Mostly <strong>Companies and Government</strong> issue bonds and <strong>investors</strong> buy those bonds as a<strong> savings and security option.</strong></li>
</ul>
</li>
</ul>
</div>
<p><a href="https://www.thehindu.com/business/govt-allots-2000-cr-for-infra-funding/article33178833.ece" target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
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