Daily Current Affairs 7 July 2020 | UPSC Current Affairs 2020

Current Affairs Of Today are

1) Compulsory licenses for generic Remdesivir

• The Polit Bureau of the CPI(M) said the government should issue compulsory licenses for the manufacture of a generic version of remdesivir, an anti­viral drug being used to treat COVID­19 patients.
• he government should invoke Clause 92 of the Patent Act that allows it to issue compulsory licenses so that Indian manufacturers can produce a more affordable generic version. 
• Gilead Sciences’ anti­viral drug Remdesivir has shown efficacy in treating COVID­19 patients. Media reports indicate that the U.S., which is hoarding all drugs found to be useful in combating the pandemic, has bought the entire stock of Remdesivir from Gilead for the next three months. It will therefore not be available for the rest of the world
• While the price of the drug was ₹2.25 lakh or $3,000 in the U.S., Indian companies were in talks for manufacturing under a Gilead’s license for sale at ₹30,000-­₹35,000. 
• The cost of manufacturing Remdesivir for a full course — as worked out by experts —is less than $10 or ₹750 in the U.S. And about ₹100 in India. Gilead, by its patent monopoly, is holding the world to ransom by asking a price that is hundreds of times its cost
• While the Drug Controller General of India (DCGI) had sped up the approval process for using Remdesivir, with the U.S. buying up the stocks and the high cost, “Indian patients will either not get the drug, or if it is available, find the cost prohibitive

About the Generic Medicines

• Generic Drugs: A generic drug is a medication that has exactly the same active ingredient as the brand name drug and yields the same therapeutic effect. It is the same in dosing, safety, strength, quality, the way it works, the way it is taken, and the way it should be used. Generic drugs do not need to contain the same inactive ingredients as the brand name product, say color or taste can be different.
• However, a generic drug is generally marketed after the brand name drug's patent has expired, which may take up to 20 years. So, during the protection period of 20 years, the patent owner tries to recover its cost which it has spent on research and development and the drug is quite costly during this time as it is produced only by the patent owner under its brand name and others can’t manufacture and sell. After the protection period is over, any company can sell the generic versions of the drug and there is a fierce competition which ultimately reduces the price of the drug.
• But the (Indian Patent Act 1970) patent laws provide a remedy to the high price issue of branded drugs in the form of licenses to the generic manufacturers even during the protection period of 20 years. This remedy is available in the form of voluntary and compulsory licensing of the drug.
• Voluntary License: Under this arrangement, a patent holder may give license (on its own) to the third party to manufacture, import, and distribute generic versions of the pharmaceutical product and much more. The licensee of the patent will act as an agent of the company. The terms in a voluntary license may set price ranges, royalty from the distribution of the sales, etc. [There is no legal provision given under Patent Act 1970 as this license access is done through a mutual contractual agreement.]
• Compulsory License: If the patent owner is exploiting its monopoly position and not manufacturing and supplying the branded drugs in the market or if the drug is not being made available at a reasonably affordable price in the market then the government can give compulsory licenses in two ways:
• If a manufacturer himself approaches the government that he can produce the drug (generic versions) at a very cheap price, but only after the negotiation between patent owner and manufacturer has failed for a voluntary license. [Section 84 of Patent Act 1970]
• In case of a National emergency (pandemic like Covid-19) or extreme urgency, Govt can give notification that it will give compulsory licenses to any manufacturer who wants to manufacture generic versions of the drug with such terms and conditions. [Section 92 of Patent Act 1970]
• But in both the cases of the compulsory license mentioned above, the manufacturer (the compulsory license holder) will have to pay a royalty to the patent owner as decided by the government.
• Now read the news article. The case above is of "Remdesivir" drug to treat Covid-19 patients and the patent owner is "Gilead Sciences"
• The Patent Act 1970, gives protection to patent owners within India. But as India is a signatory of "Trade-Related Aspects of Intellectual Property Rights" (TRIPS) under WTO, which gives protection to the Intellectual Property Rights (example patents) across the countries. And TRIPS allows for "Compulsory Licenses". So, India can think of giving compulsory license for "Remdesivir" under section 92 of The Patent Act 1970, to the companies/manufacturers who want to produce a generic version of "Remdesivir" and pay "Gilead Sciences" a royalty.
  

Source: The Hindu

2) Vice President to launch ‘Elyments’ on 5th July, First Indian Social Media Super App

• Under the inspiration of Spiritual Leader Sri Ravi Shankar (Founder of the Art of Living), more than 1000 IT professionals came together to develop the first Made in India social media super application.
• The application is called ‘Elyments’.
• Elyments launched on 5th July 2020
• Launched by - M. Venkaiah Naidu (Vice President of India).

Significance -

• The number of social media users in India has increased significantly since
• the introduction of 4g technology in the country
• Need for a homegrown Made in India Social Media Application was felt
• Rising concerns related to the privacy of data and data ownership.
• More than 500 million social media users in the country and increasing

Source: Money Control

3) Demand for Work Under MGNREGA increases by 21% in June 2020

• Demand for Work Under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) increases by 21% in June 2020
• Reason - Financial distress due to COVID-19 pandemic
• For the first time since the launch of MGNREGA in 2006, allocation under the scheme crossed Rs 100,000 crore in an FY.
• In April 2020, 12.8 million households have demanded work under MGNREGA.

About MGNREGA:

• The scheme was introduced as a social measure that guarantees “the right to work”. The key tenet of this social measure and labor law is that the local government will have to legally provide at least 100 days of wage employment in rural India to enhance their quality of life.

Key objectives:

• Generation of paid rural employment of not less than 100 days for each worker who volunteers for unskilled labor.
• Proactively ensuring social inclusion by strengthening the livelihood base of the rural poor.
• Creation of durable assets in rural areas such as walls, ponds, roads, and canals.
• Reduce urban migration from rural areas.
• Create rural infrastructure by using untapped rural labor.

The following are the eligibility criteria for receiving the benefits under the MGNREGA scheme:

• Must be Citizen of India to seek NREGA benefits.
• Jobseeker has completed 18 years of age at the time of application.
• The applicant must be part of a local household (i.e. application must be made with local Gram Panchayat).
• The applicant must volunteer for unskilled labor.

Key facts related to the scheme:

• The Ministry of Rural Development (MRD), Govt of India is monitoring the entire implementation of this scheme in association with state governments.
• Individual beneficiary oriented works can be taken up on the cards of Scheduled Castes and Scheduled Tribes, small or marginal farmers or beneficiaries of land reforms or beneficiaries under the Indira Awaas Yojana of the Government of India.
• Within 15 days of submitting the application or from the day work is demanded, wage employment will be provided to the applicant.
• The right to get an unemployment allowance in case employment is not provided within fifteen days of submitting the application or from the date when work is sought.
• Social Audit of MGNREGA works is mandatory, which lends to accountability and transparency.
• The Gram Sabha is the principal forum for wage seekers to raise their voices and make demands.
• It is the Gram Sabha and the Gram Panchayat which approves the shelf of works under MGNREGA and fixes their priority.

Source: Business standards 

4) World Bank and Government of India sign $750 million Agreement for Emergency Response Programme for Micro, Small, and Medium Enterprises

• The World Bank and the Government of India signed the $750 million agreement for the MSME Emergency Response Programme to support the increased flow of finance into the hands of micro, small, and medium enterprises (MSMEs), severely impacted by the COVID-19 crisis.
• The World Bank’s MSME Emergency Response Programme will address the immediate liquidity and credit needs of some 1.5 million viable MSMEs to help them withstand the impact of the current shock and protect millions of jobs. This is the first step among a broader set of reforms that are needed to propel the MSME sector over time.
• The World Bank Group, including its private sector arm – the International Finance Corporation (IFC), will support the government’s initiatives to protect the MSME sector by:
• Unlocking liquidity
• India’s financial system benefited from early and decisive measures taken by the RBI and the Government of India (GOI) to infuse liquidity into the market. Give current uncertainties, lenders remain concerned about borrowers’ ability to repay – resulting in a limited flow of credit even to the viable enterprises in the sector. This program will support the government’s efforts to channel that liquidity to the MSME sector by de-risking lending from banks and Non-Banking Financial Companies (NBFCs) to MSMEs through a range of instruments, including credit guarantees.
• Strengthening NBFCs and SFBs
• Improving the funding capacity of key market-oriented channels of credit, such as the NBFCs and Small Finance Bank (SFBs), will help them respond to the urgent and varied needs of the MSMEs. This will include supporting the government’s refinance facility for NBFCs. In parallel, the IFC is also providing direct support to SFBs through loans and equity.
• Enabling financial innovations
• Today, only about 8 percent of MSMEs are served by formal credit channels. The program will incentivize and mainstream the use of fintech and digital financial services in MSME lending and payments. Digital platforms will play an important role by enabling lenders, suppliers, and buyers to reach firms faster and at a lower cost, especially small enterprises that currently may not have access to the formal channels.
• The World Bank has to date committed $2.75 billion to support India’s emergency COVID-19 response, including the new MSME project. The first $1 billion emergency support was announced in April this year for immediate support to India’s health sector. Another $1 billion projects was approved in May to increase cash transfers and food benefits to the poor and vulnerable, including a more consolidated delivery platform – accessible to both rural and urban populations across state boundaries.
• The $750 million loans from the International Bank for Reconstruction and Development (IBRD), has a maturity of 19 years including a 5-year grace period.

Source: PIB

5) On a mission mode, Indian Railways takes decisive steps to transform itself as ‘Net Zero’ Carbon Emission Mass Transportation Network by 2030

• A new dawn ushers on Indian Railways as it endeavors to be self-reliant for its energy needs as directed by the Prime Minister and solarise railway stations by utilizing its vacant lands for Renewable Energy (RE) projects. The railway is committed to utilize solar energy for meeting its traction power requirements and become a complete ‘Green mode of transportation’.
• The Ministry of Railways has decided to install solar power plants on its vacant unused lands on mega-scale.
• The use of solar power will accelerate the Minister of Railways, Shri Piyush Goyal’s mission to achieve the conversion of Indian Railways to ‘Net Zero’ Carbon Emission Railway.
• Indian Railway's present demand would be fulfilled by the solar projects being deployed, making it the first transport organization to be energy self-sufficient. This would help in making Indian Railways green as well as ‘Atma Nirbhar’.
• Indian Railways has acted as a pioneer in green energy procurement. It has started energy procurement from various solar projects like 3 MWp solar plant set up at MCF Raebareilly (UP). About 100 MWp rooftop solar systems have already been commissioned on various stations and buildings of Indian Railways.
• Besides, one project of 1.7 MWp at Bina (Madhya Pradesh) which shall be connected directly to Overhead Traction System has already been installed and is presently under extensive testing. It is likely to be commissioned within 15 days. This is the first of its kind project in the world commissioned by Indian Railways in collaboration with Bharat Heavy Electricals Limited (BHEL). It involves the adoption of innovative technology for converting Direct Current (DC) to single-phase Alternating Current (AC) for feeding directly to Railway’s overhead traction system. The solar power plant has been established near the Bina Traction Sub Station (TSS). It can produce approximately 25 lakh units of energy annually and will save around INR 1.37 Crore for Railway every year.
• Indian Railways (IR) and BHEL officials have worked tirelessly to successfully implement this innovative project. The project was undertaken by BHEL under its Corporate Social Responsibility (CSR) scheme. Despite the COVID-19 lockdown and consequent difficulties faced in the availability of material and manpower, IR and BHEL worked together as a team to accomplish this mission in just 8 months from the date of signing of the agreement on 9th October 2019. The key challenge in this project was the conversion of DC power generated from solar panels to the single-phase 25 KV AC power which is used by the Railways traction system. This required the development of high capacity inverters with single phase output which was not readily available in the market. The solar panels generate DC energy which will be converted into AC energy through these unique inverters and stepped up to 25 kV AC -1 ϕ through the transformer to directly feed power to the BINA TSS which will be used for the running of electric trains.
• In addition to this, two pilot projects for the scheme of land-based solar plants for meeting electric traction energy requirements of Indian Railways are under implementation. One of them is a 50 MWp solar power plant on vacant unused land at Bhilai (Chhattisgarh) which shall be connected with Central Transmission Utility (CTU) and is targeted to be commissioned before 31st March 2021. The 2 MWp solar plant at Diwana (Haryana) which shall be connected to State Transmission Utility (STU) is expected to be commissioned before 31st August 2020.
• Railway Energy Management Company Ltd. (REMCL) is working relentlessly to further proliferate the use of solar energy on mega-scale. It has already floated tenders for 2 GW of solar projects for Indian Railways to be installed on unutilized railway lands. Indian Railways is also adopting an innovative concept of installation of solar projects along operational railway lines. This will help in preventing encroachment, enhancing the speed and safety of trains, and reduction of infrastructure costs due to the direct injection of solar power into the traction network. Another tender for the installation of 1 GW solar plants along Railway tracks is also planned to be released soon by REMCL.
•  With these mega initiatives, Indian Railways is leading India’s fight against climate challenge and is taking significant steps towards meeting its ambitious goal of being a net-zero carbon emissions organization and meeting India’s Intended Nationally Determined Contributions (INDC) targets.

Source: PIB

6) NHAI to Rank Roads for Quality Service

• In its effort to improve the quality of roads, the National Highways Authority of India (NHAI) under the Ministry of Road Transport and Highways has decided to undertake performance assessment and ranking of the highways in the country. The assessment audit and ranking of the NHs are aimed to take corrective recourse, wherever needed, to improve the quality and provide a higher level of service to highway commuters.
• The assessment parameters are based on different international practices and studies for benchmarking highway performances in the Indian context. The criteria for the assessment have been broadly categorized into three main heads: Highway Efficiency (45%), Highway Safety (35%), and User Services (20%). Based on the outcome of the assessment, the authority will undertake a comprehensive analysis and decide on the level of intervention required to enhance the overall service quality.
• Additionally, important parameters like operating speed, access control, time are taken at the toll plaza, road signages, road markings, accident rate, incident response time, crash barriers, illumination, availability of Advanced Traffic Management System (ATMS), the functionality of structures, provision for grade-separated intersections, cleanliness, plantation, wayside amenities, and customer satisfaction will also be considered while conducting the assessment.
• The score obtained by each Corridor in each of the parameters will provide feedback and corrective recourse for higher standards of operation, better safety, and user experience to improve existing highways. This will also help in identifying and filling gaps of design, standards, practices, guidelines, and contract agreements for other NHAI projects.
• The ranking of the corridors will be dynamic and the concessionaire/ contractor/ operator will get the opportunity to improve upon their ranking by improving the services on that corridor. Apart from the overall ranking of all the corridors, separate ranking for BOT, HAM, and EPC projects will also be done. This process of ranking will bring out operational efficiency and ensure high-quality maintenance of roads.

Source: PIB

7) China has made new territorial claims in its eastern border with Bhutan.

• Beijing made this claim while objecting to a request to develop the Sakteng wildlife sanctuary in eastern Bhutan’s Trashigang district at an online meeting of the Global Environment Facility (GEF).
• Set up in 1992, GEF is a US-based global body to finance projects in the environment sector.
• Bhutan objected to the Chinese claim, and the GEF council passed the project for funding. The GEF, according to sources, rejected the Chinese claim and approved the project.
• This has caused a boundary dispute between the two countries for the first time.
• The Sakteng sanctuary has in the past, too, received such grants, including in 2018-2019 for a project on preventing soil erosion, without any objection from China.
  
• Chinese Ministry of Foreign Affairs, in a statement, has said “The boundary between China and Bhutan has never been delimited. There have been disputes over the eastern, central, and western sectors for a long time”.

The boundary dispute between China and Bhutan:

• So far, the talks have been about three specific areas, including Jakarlung and Pasamlung in the north, and the Chumbi Valley, where Doklam is situated, in west Bhutan.
• According to written records, there has been no mention of eastern Bhutan, or Trashigang Dzongkhag (where Sakteng is based, that borders Arunachal Pradesh) in 24 previous rounds of boundary negotiations held between the two countries, between 1984 and 2016.
• The negotiations have not been held since the Doklam stand-off between Indian and Chinese troops in 2017.

Source: The Hindu

8) Opium seizures: UNODC world report

• The fourth highest seizure of opium in 2018 was reported from India, after Iran, Afghanistan, and Pakistan, according to the latest World Drug Report of the United Nations Office on Drugs and Crime (UNODC)
• The maximum of 644 tonnes of opium was seized in Iran, followed by 27 tonnes in Afghanistan and 19 tonnes in Pakistan. In India, the figure stood at four tonnes in 2018. In terms of heroin seizure (1.3 tonnes), India was at the 12th position in the world.
• Again, Iran reported the highest seizure of heroin (25 tonnes), followed by Turkey, the United States, China, Pakistan, and Afghanistan. Heroin is manufactured from the morphine extracted from the seed pod of opium poppy plants
• Opium is illicitly produced in about 50 countries. However, close to 97% of the total global production of opium in the past five years came from only three countries. About 84% of the total opium was produced in Afghanistan, from where it is supplied to neighboring countries, Europe, West Asia, South Asia, and Africa. A small percentage also reaches North America and the Oceania region.
• From Myanmar, which accounts for 7% of the global opium production, and Laos, where 1% of the opium is produced, it is supplied to east and south­east Asia and Oceania. Mexico accounts for 6% of the global opium production, while Colombia and Guatemala account for less than 1% of global production.
• The report said that the global area under opium poppy cultivation declined for the second year in a row in 2019. It went down by 17% in 2018 and by 30% in 2019. “The global area under opium poppy cultivation is nevertheless still substantially larger than a decade ago and at a similar level of the global area under coca cultivation
• Despite the decline in cultivation, opium production remained stable in 2019, with higher yields reported in the main opium production areas. “Taking opium consumption into account, the estimated global opium production in 2019 would have been sufficient to manufacture 472-­722 tonnes of heroin
• The opiates seized in the largest quantity in 2018 continued to be opium (704 tonnes), followed by heroin (97 tonnes) and morphine (43 tonnes). “Globally, 47 countries reported opium seizures, 30 countries reported morphine seizures and 103 countries reported heroin seizures in 2018, suggesting that trafficking in heroin continues to be more widespread in geographical terms than trafficking in opium or morphine
• Quantities of seized opiates remained concentrated in Asia, notably in south­west Asia (70%). Most opiates seized were reported in or close to the main opium production areas. Therefore, Asia, which is host to more than 90% of global illicit opium production and the world’s largest consumption market for opiates, accounted for almost 80% of all opiates seized worldwide in 2018.
• Outside Asia, the largest total quantity of heroin and morphine was seized in Europe (22% of the global total in 2018)

Source: The Hindu