Daily Current Affairs 26, 27, 28, and 29 July 2020 | UPSC Current Affairs 2020

Current Affairs Of Today Are

1) RBI RELEASES THE FINANCIAL STABILITY REPORT (SR) JULY 2020 

• FSR is a bi-annual report that reflects risks to financial stability and the resilience of the financial system. 
• The report gives various scenarios for the impact of COVID-19 pandemic on different indicators (refer to infographics). 
• GDP growth: shows contraction in all scenarios. 
• Combined gross fiscal deficit-to GDP ratio (including Centre and States) is expected to exceed 1096 in all scenarios. 
• The current account balance to GDP ratio is expected to fall, indicating a higher fall in exports as compared to imports. 
• Other key findings 
• Gross Non-Performing Assets (GNPA) ratio of all Scheduled Commercial Banks may increase from 8.5% in March 2020 to 12.5% by March 2021 under the baseline scenario. 
• NBFCs: Declining share of market funding for NBFCs is a concern as it has the potential to accentuate liquidity risk for NBFCs as well as for the financial system. 
• Risks to global economic prospects: overleveraged non-financial sector, simmering global geopolitical tensions, and economic losses on account of the pandemic. 

Source: RBI

2) MINISTRY OF CONSUMER AFFAIRS, FOOD, AND PUBLIC DISTRIBUTIONS NOTIFIED THE CONSUMER PROTECTION (E-COMMERCE) RULES, 2020 

• Rules were notified as part of the Consumer Protection Act, 2019 (CPA), to make online retailers more accountable and their businesses more transparent. 

Key highlights of rules 

• Rules will apply to all electronic retailers (e-tailers), registered in India or abroad but offering goods and services to Indian consumers. 
• It will cover all goods sold online through the marketplace or inventory-led models. 
• In a marketplace model, third-party sellers list and sell goods (e.g. eBay) while in the inventory model, the platform stocks goods and sells online (i.e. no multiple sellers are selling one product, for e.g. Jabong). 
• E-commerce entities are also required to mention 'country of origin' of goods and services that are necessary for enabling the consumer to make an informed decision at the pre-purchase stage. 
• Other details to be displayed: details about sellers, the total price of goods and services along with a break-up of other charges, expiry date, etc 
• Empowers the central government to act against unfair trade practices in e-commerce, direct selling with penal action under CPA. 
• Both e-tailers and their sellers have to appoint grievance officers to address any complaints. 
  

Source: Consumer Affairs

3) 5 PROPOSALS WORTH RS. 3090 CRORES SANCTIONED UNDER SPECIAL LIQUIDITY SCHEME FOR NBFCs AND HFCs 

• • Earlier, Special Liquidity Scheme (SLS) of Rs. 30,000 crores for Non-banking financial companies (NBFCs) and housing finance companies (HFCs) were announced under the Aatma Nirbhar Bharat package. 
• This seeks to address the liquidity constraints faced by NBFCs and HFCs to avoid any potential systemic risks to the financial sector. 
• • RBI has provided funds for the scheme by subscribing to government-guaranteed special securities issued by a trust set up by SBI Capital Markets Limited. 
• • Eligible entities: Any NBFC including Microfinance Institutions registered with RBI and any HFC registered with the National Housing Bank. 
• • Need for such scheme 
• NBFC and HFC had come under stress following a series of defaults by IL&FS group firms in September 2018. 
• NBFC sector got caught up in the contagion effect, making banks and mutual funds (a major source of funding) wary of lending to the shadow lenders, leading to a liquidity crunch in the economy. 
• With asset quality risk for NBFCs/ HFCs rising sharply in the coming months, many medium and small-sized players are likely to face severe liquidity challenges. 

Source: Mint

4) MINISTRY OF SHIPPING WAIVES WATERWAYS USAGE CHARGES FOR THREE YEARS 

• WUC has been waived off considering the Centre's vision to promote inland waterways as a supplementary, eco-friendly and cheaper mode of transport. 
• Presently, the Inland Waterways Authority (IWAI) of India levies WUC for plying of Inland cargo vessels on national waterways which acted as a hindrance in the administration of traffic movement and collection of traffic data. 
• IWAI is the statutory authority in charge of the waterways in India. 
• Intended Benefits: 
• It is estimated to increase the inland waterway traffic movement to 110 Million Metric Tonnes (MMT) in 2022-23 from 72 MMT in 2019-20. 
• It will attract the industries to use the national waterways for their logistical needs and promote the ease of doing business. 
• It will reduce the burden on other transport modes. 
• India has about 14,500 km of navigable waterways which comprise of rivers, canals, backwaters, creeks, etc. 
• National Waterways Act 2016, declared 1 11 rivers or river stretches, creeks, estuaries in India as National Waterways. 
• Inland Water Transport in India has only 0.5% modal share; compared to 42% in the Netherlands, China 8.7%; USA 8.3%, and Europe 7%. 

Source: The Hindu

5) MoRTH INVITES PUBLIC SUGGESTIONS ON INCLUSION OF HYDROGEN ENRICHED CNG (WCNG) AS AUTOMOTIVE FUEL 

• Ministry Of Road Transport and Highways (MORTH) step is aimed at the promotion of Green fuels for in the Country. 
• For this, amendments are to be made in Centra Motor Vehicle Rules 1979. 
• H-CNG is a blend of hydrogen and CNG, the idea of hydrogen concentration being 18% 
• CNC is natural gas. 
• As natural gas is mainly composed of methane, CNG emits fewer air pollutants — carbon dioxide, carbon monoxide. nitrogen oxides and particulate matter—than petro or diesel. 
• • Benefits Of H-CNG: 
• Compared to conventional CNG, Of H-CNG can reduce the emission of carbon monoxide up to 70%
• Safer than hydrogen due to its lower energy content. 
• Usable with existing CMG infrastructure, no major engine modifications are required. 
• Improves engine 
• Challenges Of using +CNG: determining optimized hydrogen/natural gas ratio, ack of storage and supply Infrastructure more expensive than CNG, 
• Other steps to promote green energy in the automobile sector: Inclusion of hybrid electric vehicles, battery electric vehicles, diesel vehicles, and vehicles using blends of biodiesel and ethanol fuel, etc, 
  

Source: PIB

6) UN REPORT WARNS OF SIGNIFICANT NUMBER OF ISIS TERRORISTS IN KERALA, KARNATAKA 

• The report warned that there are "significant numbers" of IS terrorists in Kerala and Karnataka. It also noted that: 
• Al-Qaeda in the Indian Subcontinent (AQIS) terror group is planning attacks in the region. 
• IS Indian affiliate (Hind Wilayah) has between 180 and 200 members. 
• IS (also known as ISIS (Islamic State of Iraq and Syria), ISIL, or Daesh) is a Sunni jihadist group with a particularly violent ideology that seized large swathes of territory in eastern Syria and across northern and western Iraq, since 2014. 
• In 2019, IS claimed to have established a new province IS an Indian affiliate (Hind Wilayah) in India. 
• Steps to tackle the terror threat in India: 
• De-radicalization drives e.g. Operation Pigeon launched in Kerala; 
• Coordination between Intelligence and security agencies of Centre and States; 
• Proposed National Intelligence Grid (NATGRID)- integrated intelligence master database; 
• National Investigation Agency- the specified agency to combat terror in India, etc. 

Source: Indian Express

7) INSTITUTIONAL DELIVERIES INCREASE OVER THE PAST TWO DECADES: NSO SURVEY 

• • As per survey on the state of India's health conducted by the National Statistical Office (NSO): 
• Over the past two decades, the proportion of women delivering a child in a hospital (or health care institution) increased by nearly 73% in rural India and 37% points in urban India. 
• At least 9 of every 10 women now deliver a child in a hospital availing better health care facilities. 
• 28.1% of women who deliver in the hospital undergoes a cesarean section or C-section surgery, leading to an increase in overall cost for childbirth. (ideal rate is 10 to 1 5%, as per WHO). 
• Personal preferences, older mothers and the role of private sector hospitals are reasons for the high rate of C-sections 
• Institutional deliveries can significantly reduce the risk of maternal and neonatal deaths attributable to prematurity etc. 
• E.g. Infant Mortality Rate (the number of deaths under one year of age for 1000 live births in a year) declined to 32 in 2018 from 129 in 1971. 
• Schemes to promote institutional deliveries: Janani Suraksha Yojana (under National Health Mission), Pradhan Mantri Matru Vandana Yojana, Pradhan Mantri Surakshit Matritva Abhiyan, etc. 
  

Source: Hindustan Times

8) REMITTANCES TO INDIA ARE ESTIMATED TO DECLINE BY IN FY2021: GLOBAL BANKING GROUP 

• This is due to the economic crisis induced by the COVID-19 pandemic. 
• Many Indians working in the Gulf region had recently lost jobs and more layoffs are in the offing. 
• As per the report, every 10% decrease in oil prices reduces remittances to India by 7% in the long run. 
• The weak economic outlook of the US would adversely affect employment and/or incomes of migrant workers. 
• Remittances refer to the value of money transfers that are sent from the workers residing abroad for more than 1 year to the home country. 
• In FY20, India was the largest recipient of remittances (in value terms) in the World, with remittances amounting to 2.7% of GDP. 
• Gulf region accounted for more than half of this. 
• Importance of Remittances 
• Stability to current account balance: Current Account constitutes net income, interest, and dividends and transfers such as foreign aid, remittances, donations among others. 
• Also, remittances are associated with higher spending on education, reduced child labor in disadvantaged households, alleviating poverty and improved nutritional outcomes, etc. 
• Recently, the government initiated SWADES initiative for skill mapping of citizens returning 
  

Source: Indian Express

9) STATES TO BE RANKED ON FINANCIAL MANAGEMENT INDEX (FM') FOR RURAL DEVELOPMENT 

• FMI (by Ministry of Rural Development) ranks the performance of the States based on certain parameters: 
• Preparation of annual plan, the expeditious release of State's share, timely utilization of the funds and submission of the Utilization Certificates, etc. 
• Optimum implementation of Public Financial Management System (PFMS) & Direct Benefit Transfer. 
• PFMS is a web-based platform that helps in tracking and monitoring of flow of funds to the implementing agencies. 
• Internal Audit and Social Audit. 
• The benefit of the index 
• Bring in transparency and promote the spirit of competitive, cooperative federalism. 
• Optimum utilization of the funds to ensure efficient implementation of the programs by State Governments. 
• Effective use of funds for the development works at the village level. 
• Check any irregularities through the audit process. 
• On similar lines, recently Ministry of Panchayati Raj has also decided to conduct an online audit of 20% of the estimated 2.5 lakh gram panchayats across the country. 
• It is to be conducted through AuditOnline, an open-source application under the e-panchayat Mission Mode Project by the Ministry of Panchayati Raj. 
• It will ease access to records, can be monitored at the district, state, and Centre level. 

Source: Economics Time

10) 403 INFRASTRUCTURE PROJECTS SHOW COST OVERRUNS AND 530-TIME OVERRUN: MOSPI REPORT 

• This is out of 1,686 projects worth Rs 150 crore and above. 
• Overall cost overrun is about 19.60% of the original cost and the average time overrun is around 41.16 months. 
• Presently, the Ministry of Statistics and Programme Implementation (MOSPI) monitors infrastructure projects worth Rs 150 crore and above. 
• Reasons for these overrun 
• Delay in land acquisition, forest/environment clearances, and lack of infrastructure support & linkages. 
• Project financing issues leading to delay in finalization of detailed engineering etc. 
• Delay in tendering, ordering, and equipment supply. 
• No reporting of revised cost estimates leading to under-reporting. 
• Law and order problems, geological surprises 
• Suggestions 
• Improving processes and capabilities: By investing in pre-planning and site investigation, reforming procurement, strengthening contract management, collaborative planning, etc. 
• Strengthen people management processes i.e. Clear responsibility charter with a delegation of the decision-making process, adopting technology, Overcoming legacy challenges. 
• Deepening stakeholder management for land acquisition and regulatory approvals. 
• Steps were taken in this direction: Preparing National Infrastructure Pipeline which aims to improve project preparation, Project Development Cells in Ministries, revised Model Concession agreement for Build-Operate-Transfer (BOT) model, etc. 
  

11) MINISTRY OF CHEMICALS AND FERTILIZERS LAUNCHES SCHEMES TO PROMOTE DOMESTIC  MANUFACTURING OF BULK DRUGS AND MEDICAL DEVICES 

Intended benefits: 

• Make India self-reliant and capable of catering to the global demand for the selected bulk drugs and medical devices. 
• Reduce import dependence by compensating for the manufacturing disability. 
• Significantly bring down the manufacturing cost of bulk drugs & medical devices. 

For Medical Devices 

• Scheme for Promotion of Medical Device Parks 
• Objective: Create world-class infrastructure facilities to make the Indian medical device industry a global leader. 
• 4 Medical Device Parks to be set up with maximum grant-in-aid of Rs 100 crore to each. 
• One-time grant-in-aid will be provided which will be 90% of the project cost in the case of North-East and hilly States and 70% in the case of other States. 
• Implementation: Through State Implementing Agency, a legal entity, set up by the concerned State Government. 
• Production Linked Incentive (PI-I) Scheme for Promoting Domestic Manufacturing of Medical Devices 
• Objective: Boost domestic manufacturing of medical devices in four target segments, like Cancer care / Radiotherapy medical devices, Radiology & Imaging medical devices, etc. 
• Financial incentives will be given for five years, to boost domestic manufacturing and attract large investments. 
• Eligibility: Companies registered in India with Net worth more than 18 crores. 
• Implementation: Through a Project Management Agency responsible for providing secretarial, managerial, and implementation support. 

For Bulk Drugs 

• Scheme for Promotion of Bulk Drug Parks 
• Objective: Promote setting up of bulk drug parks in the country for providing easy access to world-class Common Infrastructure Facilities. 
• Envisages creation of 3 bulk drug parks with a total outlay of Rs 3000 crore and Maximum grant-in-aid for one bulk drug park to Rs.1000 crore. 
• One-time grant-in-aid will be provided which will be 90% of the project cost in the case of North-East and hilly States and 70% in the case of other States. 
• Implementation: Through State Implementing Agency. 
• PLI Scheme for promotion of domestic manufacturing of critical Key Starting Materials (KSMs)/ DIs/APIs in India 
• Objective: Attain self-reliance and reduce import dependence in critical KSMs/ Drug Intermediates (Dls)/Active Pharmaceutical Ingredients (APIs). 
• Financial incentives will be provided on sales of 41 identified products (around 53 APIs) for six years. 
• Implementation: Through Project Management Agency. 

Source: PIB

12) THERMAL, SOLAR POWER CAN BE BUNDLED FOR ROUND-THE-CLOCK (RTC) POWER SUPPLY 

• New guidelines by the Ministry of power provides for the supply of RTC power to distributors through a Bundling Scheme, which is the first of its kind scheme in the world. 
• Bundling Scheme is a plan to sell renewable energy (RE) and thermal power in a bundle so that end users can get an uninterrupted supply of power. 
• Key guidelines: 
• Power generators have to ensure at least 85% availability both annually and during peak hours. 
• Bidders will have to supply at least 51% of the power from renewable sources. 
• Bidders can club smaller thermal projects to tie-up with their renewable projects. 
• RE components can include solar and non-solar sources such as wind, hydro, or any combination of the same. 
• Bidder will have to pay a penalty equivalent to 25% of the shortfall in energy terms. 
• Benefits of Bundling Scheme: 
• Address issues of intermittency, limited hours of supply and low capacity utilization of transmission infrastructure; 
• Facilitate grid-connected solar power generation; 
• Help states fulfill their renewable purchase obligation (RPO) etc. Under RPO, Discoms are obliged to purchase a certain percentage of electricity from RE sources. 

Source: ET

13) GOVERNMENT PLANS TO SET UP A NATIONAL LAND MANAGEMENT CORPORATION (NLMC) 

• NLMC will be set up as a separate authority to manage surplus land assets and land owned by the Centre as well as central public sector enterprises (CPSEs). 
• 'Surplus' land or property are those that are not needed or are not appropriate for the provision of public service for which the agency owning the property is responsible. 
• NLMC will set up a special purpose vehicle (SPV) to pursue land lease or concessions as a primary mode of commercial exploitation. SPV Will 
• Develop model concession agreements for land developments, 
• Raise money from the market backed by land assets, 
• Look after resettlement and rehabilitation of occupiers, 
• Make timed decisions for concession/selling land to avoid disruption to local real estate markets. 
• Need for such body 
• Apart from Railways and Defence, other government departments do not have a specialized organization to handle the commercial development of government land. 
• A separate authority working with various departments can bring effectiveness, transparency, and ensure speedy decisions. 
• Proper utilization of land, a large amount of which acquired by governments remains unused. 

Source: IE

14) CENTRE TO CONVERT RAVINES OF CHAMBAL REGION INTO ARABLE LAND WITH WORLD BANK SUPPORT 

• Centre has decided to convert a large area of ravines (Bihad in the Hindi) area of the Gwalior-Chambal belt of Madhya Pradesh into arable land. 
• Currently, more than 3 lakh hectares of rugged (rocky and uneven surface) land in this region is not cultivable. 
• The project would involve leveling of the ravines, building percolation tanks and creating bunds to prevent erosion of soil 
• It will help in improved agricultural development, creating employment opportunities, etc. 
• Ravines are badland topography formed by the deep erosive action of water on the soil and are the intricate network of gullies. E.g. Chambal ravines occur in the catchment area of the Chambal River and its tributary, Kunwari River. 
• These are the worst form of land degradation and about 3.97 million hectares of land in India form ravines. 
• Uttar Pradesh, Madhya Pradesh, Rajasthan, and Gujarat account for about 70% of the country's ravines. 
• Causes of ravine formation: Climate change, catastrophic storms, tectonic uplift or base-level lowering, removal of vegetation and deforestation, overgrazing, etc. 
• Coping mechanisms for ravines: Integration of soil-water conservation, scientific techniques, contour bunding, channeling, gully path modifications, changing cropping patterns, and land leveling. 
  

Source: TH

15) INDIA LIKELY TO MISS TARGET OF ERADICATING AIDS BY 2030: INDIAN COUNCIL OF MEDICAL RESEARCH (ICMR) STUDY 

• In 2016, at the UNs' High-Level Meeting on AIDS, India committed towards the goal of 'ending the AIDS epidemic as a public health threat by 2030'. 
• SDG 3.3 aims to End AIDS as a public health threat by 2030. 
• Key highlights of the study 
• The decline in annual new HIV infections was only 27% from 2010 to 2017 against a national target of a 75% decline by 2020. 
• People Living With HIV/AIDS (PHLIV): 2.1 million in 2017. 
• States with the highest number of PHI-IV in 2017: Maharashtra, Andhra Pradesh, and Karnataka. 
• Signs of rising new HIV infections in the low-burden states of Arunachal Pradesh, Assam, Mizoram, etc. in 2017 compared with 2010. 
• Acquired immunodeficiency syndrome (AIDS) is a chronic, life-threatening condition caused by the human immunodeficiency virus (HIV). HIV interferes with the body's ability to fight infection and disease, by damaging the immune system. 
• Steps were taken to eradicate AIDS 
• National AIDS Control Programme, based on three pillars-Prevention, Care-counselling, and Treatment. 
• National Strategic Plan (2017-24) on HIV/AIDS and Sexually Transmitted Infection. 
• Project Sunrise for prevention of AIDS in 8 North-Eastern states. 

Source: Mint

16) SECOND DRAFT OF DEFENCE ACQUISITION PROCEDURE (DAP) 2020 PLACED IN THE PUBLIC DOMAIN 

• DAP (earlier, Defence Procurement Procedure- DPP 2020) will cover all Capital Acquisitions undertaken by the Ministry of Defence and Service Headquarters (SHQ) both from indigenous sources and ex-import, except for medical equipment. 
• The first draft of DPP 2020 was released in March 2020. It seeks to replace DPP 2016. 
• Key Highlights of the draft 
• For the first time, a ban on the import of specific kinds of weapons and platforms has been proposed. 
• It is to promote domestic and indigenous industries and to align DAP with Atmanirbhar Abhiyan. 
• Emphasis on promoting higher indigenous content in equipment manufactured in India, including under license from foreign vendors. (see infographic). 
• A new procurement category, Buy (Global -Manufacturer in India) is introduced. 
• Leasing is introduced as a new category for acquisition to substitute huge initial capital outlays with periodical rental payments. 
• New chapter for procuring equipment and platforms based on software and information and communications technology ('CT). 
• Deals with "post-contract management", which lays down clear guidelines for issues that arise during the contract period. 

Source: PIB

17) 4TH TIGER ASSESSMENT REPORT RELEASED ON WORLD TIGER DAY (29TH JULY) 

• • It was released by the Ministry of Environment, Forest and Climate Change and the report assess the status of tigers in terms of spatial occupancy and density of individual populations across India. 
• • Key Findings 
• At 2,967, India hosts 70% of the world's tigers. Tigers were observed to be increasing at a rate of 6% per annum (2006 to 2018). 
• Nearly a third of India's tigers are living outside tiger reserves. 
• Madhya Pradesh has the maximum number of tigers followed by Karnataka. 
• Northeast has suffered losses in population. Tiger status in Chhattisgarh, Jharkhand, and Odisha has steadily declined. 
• The largest contiguous tiger population in the world of about 724 tigers was found in the Western Ghats (Nagarhole-Bandipur-Wayanad -Mudumalai- Satyamangalam-BRT block). 
• Corbett Tiger Reserve had the largest population of tigers, about 231, in 2018. 
• Nearly 17 of the 50 reserves are approaching the peak of their capacity at sustaining their populations. 
• • During the release of the report, a water and fodder scheme was proposed within the reserves so that fewer animals stray out of these reserves and minimizes animal-human conflict.

Source:  Project Tiger