Daily Current Affairs 12 June 2020 | UPSC Current Affairs 2020

Current Affairs of Today are


    1) IFLOWS-Mumbai

    • Extreme precipitation events are on the rise in India driven by warming temperatures and changes in the monsoon due to climate change. The capital of the state of Maharashtra, Mumbai, a megapolis and the financial capital of India, has been experiencing floods with increased periodicity and recent flood on 29 August 2017, brought the city to a standstill.  The flood during 26th July 2005, is probably etched in the memory of every Mumbai citizen, when the city received rainfall of 94cm, a 100 year high in 24 hours paralyzing the city completely. As a preparedness for floods before they occur, people to be warned so that they can be prepared in advance for flooding conditions.
    • In a bid to aid in the mitigation activities of the flood-prone city, Municipal Corporation of Greater Mumbai, Govt of Maharashtra approached the Ministry of Earth Sciences (MoES) to develop an Integrated Flood Warning System for Mumbai referred to as, IFLOWS-Mumbai. MoES initiated the development of IFLOWS-Mumbai in July 2019 using the in-house expertise available within the Ministry of Earth Sciences in close coordination with Municipal Corporation of Greater Mumbai. IFLOWS-Mumbai is developed as a state of art Integrated Flood Warning system for Mumbai to enhance the resilience of the city of Mumbai by providing early warnings for flooding especially during high rainfall events and cyclones.
    • I-FLOWS is built on a modular structure and comprises of seven modules, namely Data Assimilation, Flood, Inundation, Vulnerability, Risk, Dissemination Module, and Decision Support System.  The system incorporates weather models from National Centre for Medium-Range Weather Forecasting (NCMRWF), India Meteorological Department (IMD), field data from the rain gauge network stations set up by Indian Institute of Tropical Meteorology (IITM), Municipal Corporation of Greater Mumbai (MCGM) and IMD, thematic layers on land use, infrastructure, etc provided by MCGM. Based on inputs from weather models, Hydrologic models are used to transform rainfall into runoff and provides inflow inputs into the river systems. Hydraulic models are used to solve equations of fluid motion to replicate the movement of water to assess flooding in the study area.   Since, Mumbai is an island city with its connectivity to sea, hydrodynamic models and storm surge models are used to calculate the tide and storm surge impacts on the city. The system has provisions to capture the urban drainage within the city and predict the areas of flooding, which will be incorporated in the final system. The data on river bathymetry was collected in all rivers namely Mithi, Dahisar, Oshiwara, Poisar, Ulhas, lakes, and creeks by NCCR in association with MCGM and IMD, Mumbai. The land topography, land use, infrastructure, population, etc., was provided by MCGM and it was integrated into a Decision Support System to accurately estimate flood levels at ward level using thematic layers in GIS. A web GIS-based decision supports system is build to calculate the vulnerability and risk of elements exposed to flood.
    Source: PIB

    2) Enhanced Import Duty on Bamboo Sticks to give a big boost to Agarbatti and Bamboo Industries in India: KVIC

    • The Central Government’s decision to increase import duty on bamboo sticks from 10% to 25% will open up new avenues of self-employment in the country. Welcoming the decision in a statement issued today, Khadi & Village Industries Commission(KVIC)  has said that, in the next 8-10 months, at least one lakh new jobs will be created in the Agarbatti industry, a major activity under the village industry sector in India, according to industry players.
    • KVIC said that the decision was taken by the Finance Ministry on the initiative of Union Minister for MSME, Shri Nitin Gadkari who had requested the Prime Minister Shri Narendra Modi to increase the import duty on bamboo sticks to discourage heavy import and help the local industry grow. The decision assumes great significance as the heavy import of bamboo sticks from China and Vietnam caused huge employment loss in India. This decision will pave the way for setting up of new agarbatti stick manufacturing units to meet the ever-growing demand of Agarbatti in India.
    • At present, the KVIC said, consumption of incense sticks in India is pegged at a whopping 1490 tons per day but only 760 tons per day is locally produced. Hence, the huge gap between the demand and supply resulted in the heavy import of raw agarbatti. Consequently, the import of raw agarbatti increased from just 2% in 2009 to 80% in 2019. In monetary terms, the import of raw agarbatti in India increased exponentially from Rs 31 crore in 2009 to Rs 546 crore in 2019 due to the reduction of import duty in 2011 from 30 % to 10 %, it added. KVIC stated, "This hit the Indian agarbatti manufacturers hard and resulted in the closure of nearly 25% of the total units".
    • However, on request of Khadi and Village Industries Commission (KVIC), the Ministry of Commerce on August 31, 2019, placed the import of raw agarbatti under the “Restricted” category. But while the restriction on import revived hundreds of agarbatti units in states like Maharashtra, Madhya Pradesh, Uttar Pradesh, Gujarat, and several North-Eastern states, it also prompted the local traders to import round bamboo sticks for manufacturing of raw Agarbatti. This resulted in an increase in the import of Bamboo sticks from Rs 210 crore in 2018-19 to Rs 370 crore in the year 2019-20.
    • KVIC Chairman, Shri Vinai Kumar Saxena said this single decision will strengthen the agarbatti as well as the bamboo industry in India. “India is the 2nd largest producer of bamboo in the world but ironically, it is also the 2nd largest importer of bamboo and its products. The hike in import duty on bamboo sticks from 10% to 25% will curb heavy import from China and encourage local manufacture in Agarbatti and bamboo industries. We are expecting now India will become "atamnirbhar" in Agarbatti production soon which will create thousands of new jobs,” Saxena said.
    • “Agarbatti making industry is a part of the Village Industry, which requires a very small capital and less technical skill. This industry employs mostly women workers. In the post-Covid scenario, this industry will prove to be a boon for the migrant workers. The Agarbatti industry can realize the Prime Minister’s dream of ‘Atmanirbhar Bharat’”, Saxena added.
    • Notably, India produces 14.6 million tons of bamboo every year with nearly 70,000 farmers engaged in the bamboo plantation. While 136 varieties of bamboo are found in India; the Bambusa Tulda variety, which is used for making agarbatti sticks, is found in abundance in the Northeastern region. The KVIC has also launched a bamboo plantation drive to make India self-sufficient to meet the growing demand for bamboo in the next 3-4 years.
    Source: PIB

    3) New low-cost novel coronavirus test developed

    • The Indian Council of Medical Research (ICMR) has recommended only a reverse transcription-polymerase chain reaction (RT-qPCR) test for novel coronavirus testing. Researchers at the Centre for Cellular and Molecular Biology (CCMB) have developed a new low-cost and low-tech required test for SARS-CoV-2 testing. This test is known as reverse transcription nested PCR (RT-nPCR) test.
    • This test does not require real-time quantitative RT-qPCR. The RT-nPCR developed by the CCMB research team has shown comparable performance to the standard RT-qPCR test. The nested PCR (RT-nPCR) approach does not depend on RT-qPCR but uses standard RT-PCR as part of an endpoint assay.
    • In the course of comparing the results of both tests, researchers found that the standard RT-qPCR test can have low detection efficiency (less than 50%) in a real testing scenario, which may be due to low viral representation in many samples. This finding brought home the importance of monitoring detection efficiency directly in test environments.
    • The RNA isolated from nasopharyngeal swab samples that had been previously tested using one of the two RT-qPCR tests was examined using RT-nPCR and the results were compared. It was found that taking both standard RT-qPCR tests together, the RT-nPCR test was able to identify 90% of the detected samples as positive by RT-qPCR. It also detected 13% samples as positive among samples that were negative by the standard RT-qPCR test (likely false negatives). Based on the experimentally measured false-negative rate by RT-nPCR tests from this study, it was estimated that as many as 50% of positive samples may escape detection in single pass testing by RT-qPCR in an actual testing scenario.
    Source: PIB

    4) Genetically Modified Seeds

    Recently, Shetkari Sanghatana, a Maharashtra based farmers’ union body has announced agitation for use of unapproved genetically modified seeds of cotton, maize, rice, mustard, soybean, and brinjal.
    • Shetkari Sanghatana is a big supporter of GM seeds. Its main aim is to provide farmers, freedom of access to markets and technology.
    • Last year its members had broken the law by planting Herbicide Tolerant Bt cotton seeds. This year too it's members are planning to repeat the same.

    Key Points

    • Genetically Modified Seeds:
      • Conventional plant breeding involves crossing species of the same genus to provide the offspring with the desired traits of both parents.
      • Genus is a class of items such as a group of animals or plants with similar traits, qualities, or features.
      • Genetic modification aims to transcend the genus barrier by introducing an alien gene in the seeds to get the desired effects. The alien gene could be from a plant, an animal, or even a soil bacterium.
      • Bt cotton is the only Genetically Modified (GM) crop that is allowed in India. It has alien genes from the soil bacterium Bacillus thuringiensis (Bt) that allows the crop to develop a protein toxic to the common pest pink bollworm.
      • Herbicide Tolerant Bt (Ht Bt) cotton, on the other hand, is derived with the insertion of an additional gene, from another soil bacterium, which allows the plant to resist the common herbicide glyphosate.
      • In Bt brinjal, a gene allows the plant to resist attacks of fruit and shoot borers.
      • In DMH-11 mustard, genetic modification allows cross-pollination in a crop that self-pollinates in nature.
    • Legal Position of GM crops in India
      • In India, the Genetic Engineering Appraisal Committee (GEAC) is the apex body that allows for the commercial release of GM crops.
        • In 2002, the GEAC had allowed the commercial release of Bt cotton. More than 95% of the country’s cotton area has since then come under Bt cotton.
      • The use of the unapproved GM variant can attract a jail term of 5 years and fine of Rs. 1 lakh under the Environment Protection Act, 1986.
    • Farmers Demand for GM Seeds:
      • GM seeds reduce production costs and increase productivity.
        • Ht Bt cotton reduces the high cost of weeding.
        • Bt brinjal reduces the use of pesticides.
    • Issues involved: Genetic modification brings about changes that can be harmful to humans in the long run. The long-lasting effect of GM crops is yet to be studied. Some of the issues involved are:
      • The threat to Biodiversity:
        • Cross-pollination in GM crops paves the way for herbicide-resistant superweeds that can further threaten the sustenance of other crops and pests because of their uncontrolled growth. In short, biodiversity gets threatened.
        • GM crops because of their pest resistance characteristics could eliminate important species of pests that are responsible for sustaining domestic varieties and can pose serious threats to biodiversity. It can affect the food chain also.
      • Nutrition issues:
        • Bt brinjal poses risks to human health as its resistance to antibiotics can turn medicines ineffective and may result in the formation of new toxins and allergens.
      • Implications for consumers and farmers:
        • It is claimed that patent laws give developers of the GM crops a dangerous degree of control/dominance over the food supply that results in the over domination of world food production by a few companies.

    Way Forward

    • The environmental impact assessment should be carried out by independent environmentalists, as farmers do not and cannot assess the long-term impact of GM crops on ecology and health.
    • Ensure that an unapproved variety of GM seeds is not available in markets.
    • To curb the illegal cultivation of GM seeds, the Genetic Engineering Appraisal Committee (GEAC) should:
      • Collaborate with state governments and launch a nation-wide investigation drive.
      • Take action on threats of deliberate GM crop cultivation.
      • Investigate and prosecute those involved in the illegal supply of GM Seeds.
      • Encourage organic farming.
    • The government should go for commercialization of GM seeds only after the core and deep research on the long term prospects and benefits of commercialization of GM seeds in India.
    Source: Indian Express

    5) Athirapally Hydel Electric Project

    Recently, the Kerala government has approved the proposed Athirapally Hydro Electric Project (AHEP) on the Chalakudy river in Thrissur district of the state.
    • There are already five dams for power and one for irrigation and it will be the seventh along the 145 km course of the Chalakudy river.

    Chalakudy River

    • It originates in the Anamalai region of Tamil Nadu and is joined by its major tributaries Parambikulam, Kuriyarkutti, Sholayar, Karapara, and Anakayam in Kerala.
    • The river flows through Palakkad, Thrissur and Ernakulam districts of Kerala.
    • It is the 4th longest river in Kerala and one of the very few rivers of Kerala, which is having relics of riparian vegetation at a substantial level.
      • A riparian zone is an interface between land and a river or stream. Plant habitats and communities along the river margins and banks are called riparian vegetation, characterized by hydrophilic plants.
    • It is the richest river in fish diversity perhaps in India as it contains 85 species of freshwater fishes out of the 152 species known from Kerala only.
    • The famous waterfalls, Athirappilly Falls and Vazhachal Falls, are situated on this river.
    • It merges with the Periyar River near Puthenvelikkara in Ernakulam district.

    Key Points

    • The total installed capacity of AHEP is 163 MW and the project is supposed to make use of the tail end water coming out of the existing Poringalkuthu Hydro Electric Project that is constructed across the Chalakudy river.
      • AHEP envisages diverting water from the Poringalkuthu project as well as from its own catchment of 26 sq km.
    • Kerala state government has given a no-objection certificate (NOC) to the Kerala State Electricity Board (KSEB) for seven years and has permitted it to proceed with the project’s implementation.
    • KSEB officials are confident that they can manage approval from the Ministry of Environment, Forest and Climate Change as it was approved in 2012 by an Expert Appraisal Committee (EAC) for river valley and hydro-electric projects.
    • EACs are constituted for giving environmental clearance under the Environmental Impact Assessment (EIA).
    • Opposition:
      • The government’s move to revive the already controversial power project has gained opposition from various political leaders and environmentalists.
        • KSEB first mooted the project in 1996 but it had been suspended due to strong opposition by the local community backed by environmentalists and politicians with green concerns.
        • A report by the Kerala State Biodiversity Board pointed out in 1997 that the power project would adversely affect the ecology of the fragile river ecosystem at Athirappilly.
      • It is feared that it will cause people to organize a protest on the lines of Silent Valley in the coming days.
        • Silent Valley was an ecological movement with huge mass participation that forced the Kerala government to abandon dam construction across the Kunthri River in Palakkad district during the late 1970s and early 1980s.
    • Environmental Threats:
      • Athirappally is home to some rarest species of birds, animals, and plant species which will be impacted.
        • Apart from being home to hornbills, tigers, and leopards, the forests also host the Nilgiri langur, the lion-tailed macaque, and the rare Cochin forest cane turtle.
      • Fish varieties in the Chalakudy river would be impacted.
      • Around 168 hectares of biodiversity-rich forests in the Western Ghats would be submerged.
      • Kadar tribal settlements in the forests will be dismantled and displaced. The move seems to be violative of the forest rights granted to the Kadar's under the Forest Rights Act, 2006.
      • It would sever the only link between the Peechi Vazhani Wildlife Sanctuary, Thrissur, and the Idamalayar basin of the Periyar river.
      • The vital elephant corridor between the Parambikulam Sanctuary (also a tiger reserve) and the Pooyamkutty forests would also be affected.
      • On the tourism front, the project would wipe out the majestic Athirappally and Vazhachal waterfalls, which draw 0.6 million domestic and foreign tourists every year.
    Source: Down To Earth

    6) International Religious Freedom Report 2019

    Recently, the US State Department has released its annual International Religious Freedom (IRF) Report 2019, which is a survey of the state of religious freedom across the world.
    • It published a report i.e. the country report for India to highlight the issue of religious freedom in the country
    • Earlier, the US Commission on International Religious Freedom (USCIRF report) downgraded India’s religious freedom to the lowest grade — in the ‘Country of Particular Concern (CPC)’ category.

    Key Points

    • The IRF report listed countries for positive developments in religious freedom and negative examples.
      • Nicaragua, Nigeria, and China were cited as negative examples.
      • It stated that in China, state-sponsored repression against all religions continues to intensify because of the Chinese Communist Party.
      • India is not cited in either list.
    • The Country Report for India:
      • It highlighted the developments that took place in 2019 i.e. the status of Jammu and Kashmir, the Citizenship (Amendment) Act (CAA), and the National Register of Citizens (NRC).
      • It discussed in detail about mob lynchings, anti-conversion laws, cow vigilantism, and related issues.
      • Taking note of the alleged attacks and discrimination against religious and ethnic minorities in India, the report emphasized the need to ensure full protection to minorities in the country as guaranteed under the Constitution.
      • It also outlines the U.S. engagement with India on these issues.
    • India's Stand:
      • The Indian government has rejected the report by asserting that there is no locus standi for a foreign government to comment on the state of its citizens' constitutionally protected rights.
      • It also emphasized that the report did not talk about religious freedom given to various communities in India
    • Religious Freedom in the US:
      • The US government has signed an executive order which included a move to formally prioritize religious freedom in the U.S. foreign policy.
      • The order also directed the United States Agency for International Development (USAID) to allocate $50 million in its yearly budget towards programs that sought to promote religious freedom.
      • Recently, the US faced domestic protests in response to the death of George Floyd, an unarmed black man at the hands of a white police officer.
    Source: The Hindu

    7)  First sero­survey on COVID­19 spread

    • The Indian Council of Medical Research (ICMR) released the results of the first sero­survey on COVID­19 spread that stated that the urban slum population was most vulnerable to the spread, followed by urban settlements. The ICMR asserted that the country is not in the community transmission phase. 
    • The ICMR has calculated that compared to rural areas, the risk of spread was 1.09 times higher in urban areas and 1.89 times higher in urban slums. The infection fatality rate is very low at 0.08%
    • The sero­surveillance study, conducted in 83 districts covering 28,595 households and 26,400 individuals by the ICMR along with other agencies in May, also reveals that 0.73% of the population surveyed showed evidence of past exposure to SARS­CoV­2.
    • The sero­surveillance study has two parts. The primary task of estimating the fraction of people who have been infected in the general population has been completed and the second objective of estimating the infected population in containment zones of hotspot cities is in the process of completion.
    Source: The Hindu

    8) Universal Periodic Review (UPR) process

    • In its report on human rights in India, the National Human Rights Commission (NHRC) has informed the United Nations Human Rights Council (UNHRC) that the recommended implementation of a universal basic income was “under examination and active consideration” of the Centre
    • As a part of the third round of the Universal Periodic Review (UPR) process, which is done every fourand­a­half­years, the NHRC submitted its mid­term report to the UN agency recently. The report, dated “May 2020”, reviewed the implementation of 152 recommendations of the UPR Working Group that the Indian government had accepted in September 2017. 
    • One of the recommendations was: “Continue studying the possibility of a universal basic income as a way to further reduce poverty levels to possibly phase out the existing social protection system, in full consultation with all stakeholders.”
    • After meeting stakeholders, including civil society, and representatives of the Ministries responsible for implementing the policies concerned, the NHRC said several issues had been highlighted, including the “ratification of international human rights instruments, issues in legislations of trafficking and protection against child sexual abuse” and “gaps in the implementation of schemes for food security and timely disbursement of wages under schemes for employment”.
    • The report stated that there had been a consensus on the need for increased budgetary allocation for health and nutrition by the Centre and state governments. 
    • About child rights, the report said the National Commission for Protection of Child Rights was working on a proposal for a pilot project to eliminate child labor in five “aspirational districts with a high incidence of child labor”.
    • On the issue of reproductive rights, the NHRC noted that the Centre had requested the Ministry of Health and Family Welfare, the Department of Financial Services, the Insurance Regulatory and Development Authority of India and the National Health Authority to consider the issue of sterilization, birth control treatment, and procedures expenses not being covered under health insurance policies currently. 
    • The NHRC noted that it had found “gaps in policies as compared to obligations” under the United Nations Convention on the Rights of the Child and had made recommendations to address the same. It added that it was in the process of setting up a committee to monitor the implementation of the Convention on the Elimination of All Forms of Discrimination against Women. 
    • To make education more accessible to children with disabilities, the NHRC said it had recommended to the Human Resource Development Ministry in January 2020 to ensure the “holistic inclusion” of such children in its Draft National Education Policy. 
    • The NHRC said it had expressed “concern over the inefficiencies in implementation of the Scheduled Caste/Scheduled Tribe (Prevention of Atrocities Act) 1989 and the Rules of 1995” and warned States of coercive action when they failed to submit reports on violation of human rights of SCs, STs, and minorities. 
    Source: The Hindu

    9) First estimation exercise of Indian gaur in Nilgiris

    • The first population estimation exercise of the Indian gaur carried out in the Nilgiris Forest Division in recent years, which was conducted in February of this year, has revealed that more than an estimated 2,000 Indian gaurs inhabit the entire division. 
    • Worryingly, the exercise has also revealed that the majority of the animals in “conflict­prone” areas in the division live perilously close to human habitations due to habitat loss and fragmentation, exacerbating the probability of having problematic interactions with humans.
    • According to statistics revealed by the Forest Department, 794 gaurs were directly sighted over a one­week period during the exercise. The direct sightings were by the Department staff and volunteers who were involved in the exercise.
    • It was estimated that there were more than 2,000 Indian gaurs across the division, with an average of eight individuals per square kilometer
    • The decision to also estimate the population of Indian gaur, alongside other major fauna in the division, especially around the major towns of Coonoor, Udhagamandalam, Kotagiri, and Kundah was necessitated by an increase in the number of problematic human­gaur interactions in the Nilgiris over the last few years. In 2019, three people were killed and seven others injured by Indian gaur.
    • It was noticed that a majority of the gaurs seen around Kundah, Kotagiri, Coonoor, and Kattabettu, where a majority of these interactions occurred, preferred to inhabit tea estates and human settlements, while the animals largely avoided forested areas
    • Officials said that the reasons for this could be due to the easy availability of food in and around human settlements, the lack of threat from predators, and the spread of invasive flora into reserve forests.
    • Moreover, many of these ‘conflict­prone’ regions are witnessing changing land-use patterns, with what were tea estates being converted into resorts and buildings.
    • This also translates to fences becoming more prominent around these properties and severely limiting traditional pathways used by the gaur to move between habitats,” said a Forest Department staff from the Nilgiris division.
    • Although there were sizeable populations of gaurs in other areas, such as in Pykara and Naduvattam, interactions with humans were comparatively less due to native forests being largely free of invasive flora, and land-use patterns also remaining relatively stable, officials said, making it clear that increasing human pressures were leading to problems.
    • The notion that more Indian gaur is being spotted within the towns due to a steady increase in their population over the last decade could also be misguided. 
    • Officials said that, on average, a total of 60 gaurs die each year in the Nilgiris Forest Division, many due to accidents related to living close to human habitations.

    Indian Gaur

    • The Indian Gaur or Bison (Bos gaurus) is the largest and the tallest in the family of wild cattle and is a grazing animal.
    • Threats:
      • Food Scarcity:
        • The destruction in the grasslands has led to a decline in the availability of food for these animals.
        • Due to the planting of commercially important trees, the lush grassland has diminished which is the prime source of fodder for this wild cattle.
        • They have to fight for their food due to the indiscriminate grazing of domestic animals in the areas.
      • Poaching:
        • The illegal hunting of the Indian bison is done for their commercial value as well as due to the high demand of gaur meat in the illegal market of India-Nepal border.
    • Conservation:
      • IUCN Red List: Vulnerable.
      • Wild Life Protection Act, 1972: Schedule I.
    • Nowadays, this animal is kept well and protected in some of the famous national parks of India like Nagarhole, Bandipur, Kabini, and Masinagudi (Mudumalai).

    World Wide Fund for Nature India

    • It was established as a charitable trust on 27th November 1969 and today it is one of the leading conservation organizations in the country.
    • In 1987, it changed its name from the World Wildlife Fund to World Wide Fund for Nature India.
    • It is a science-based organization that addresses issues such as the conservation of species and its habitats, climate change, water, and environmental education, among many others.
    • Mission Statement: To stop the degradation of the planet’s natural environment and build a future in which humans live in harmony with nature, by:
      • Conserving the world's biological diversity.
      • Ensuring that the use of renewable natural resources is sustainable.
      • Promoting the reduction of pollution and wasteful consumption.
    Source: The Hindu

    10) RBI proposes a comprehensive framework for the sale of loans

    • RBI has released a draft Framework for ‘Sale of Loan Exposures’.
    • The move is aimed at building a robust secondary market for bank loans that could ensure proper price discovery and can be used as an indicator of impending stress.

    What are loan sales?

    • Loan sales may be resorted to by lenders for any reasons ranging from strategic sales to rebalance their exposures or as a means to achieve resolution of stressed assets by extinguishing the exposures.

    Highlights of the draft:

    • Standard assets would be allowed to be sold by lenders through assignment, novation, or a loan participation contract (either funded participation or risk participation).
    • Stressed assets would be allowed to be sold only through assignment or novation only. They may be sold to any entity that is permitted to take on loan exposures by its statutory or regulatory framework.
    • The draft lays down norms for sale of NPAs to Asset Reconstruction Companies (ARCs) also buyback of NPAs in case the ARCs manage to turn them into standard assets.
    • The draft also proposes to do away with the requirement of Minimum Retention Requirement (MRR) for sale of loans by lenders.

    Relevance:

    • These guidelines will apply to commercial banks, all financial institutions, non-banking finance companies, and small finance banks.
    • The directions will apply to all loan sales, including the sale of loans to special purpose entities for the purpose of securitization.

    Significance of these guidelines:

    • A dynamic secondary market for bank loans will ensure proper discovery of credit risk pricing associated with each exposure and will be useful as a leading indicator for impending stress, if any, provided that the volumes are sufficiently large.
    Source: The Hindu

    11) Sikkim- Tibet Convention of 1890


    • The skirmishes and the standoff between Indian and Chinese troops at Naku La in Sikkim last month, in an area of the Line of Actual Control (LAC) has brought back the focus onto the historical Sikkim-Tibet Convention of 1890.
    • Experts say, as per this convention, Naku la belongs to India. Besides, Before Sikkim’s merger with India in 1975, China has officially accepted this demarcation.

    What is the 1890 convention?

    • The treaty was formalized between Britain and the Chinese kingdom. 
    • It was signed at Calcutta Convention in 1890. Of the eight Articles mentioned in the treaty, Article 1 is of critical significance.
    • As per Article (1), it was agreed that the boundary of Sikkim and Tibet shall be the crest of the mountain range separating the waters flowing into the Sikkim Teesta and its affluents, from the waters flowing into the Tibetan Mochu and northwards into other rivers of Tibet.
    • The line commences at Mount Gipmochi, on the Bhutan frontier, and follows the above-mentioned water-parting to the point where it meets Nepal territory. However, Tibet refused to recognize the validity of the Convention of 1890 and further refused to carry into effect the provisions of the said Convention.
    • In 1904, a treaty known as a Convention between Great Britain and Tibet was signed at Lhasa.
    • As per the Convention, Tibet agreed to respect the Convention of 1890 and to recognize the frontier between Sikkim and Tibet, as defined in Article (1) of the said Convention.
    • On April 27, 1906, a treaty was signed between Great Britain and China at Peking, which confirmed the Convention of 1904 between Great Britain and Tibet.
    Source: The Hindu

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