Daily Current Affairs 1 January 2022

Current Affairs Of Today Are

1) G – 20 Seminar

On behalf of the Government of India, the Union Minister for Finance virtually attended the G- 20 international seminar hosted in Bali by the Presidency of Indonesia.
The theme of the Seminar: Recover together, Recover Stronger
Aim: The seminar intended to discuss ways to recover the global economy and to find the areas of collaboration at the multilateral level.

Approach to recover the global economy:

There needs to be a strong, sustainable, balanced, and inclusive recovery of the global economy and it should be well equipped to deal with future challenges that arise due to pandemic-like situations.
Such a recovery would require collective action along with multilateralism.
The importance of inclusion, investment, innovation, and institutions was highlighted.
Accessibility and affordability of vaccines and other therapeutics will be essential to have an equitable distribution of healthcare services. In this regard, India has administered over 1.25 billion doses of vaccines and supplied more than 72 million vaccine doses to over 90 countries. This indicates India’s commitment to coordinated global action.
Enhancement of infrastructure investments will also enable a faster and stable recovery.
Green Finance, Green Climate Fund, emphasizes promoting green technologies that aim to mitigate climate change and can be made available to developing countries to incentivize their efforts towards a sustainable future.

2) CONVOKE 2021 – 22

The NITI Aayog along with Bharti Foundation announced the launch of CONVOKE 2021-22.
The theme of Convoke 2021: School Leadership for School Excellence

Objectives:

CONVOKE is a national research symposium that aims at resolving the challenges in the delivery of education and strengthening quality.
It intends to pay emphasis on teachers, educationists, and heads of schools and encourages the adoption of research-based solutions through a scientific approach.
This would ensure better learning results at the grassroots level.

Significance:

CONVOKE offers a suitable platform for teachers to share their research papers that provide innovative solutions to improve learning and these research papers would be analyzed by a panel of educationists.
This event will focus on enhancing the quality of elementary education and reverse the learning regression that was an outcome of the pandemic.
The existing gap between academia, policymakers, and educationists will be reduced along with to design of educational policies that serve the interests of the grassroots.
It also promotes the goals of NEP, 2020.

3) Swachh Technology Challenge

Swachh Technology Challenge launched.

About the Challenge:

The challenge was launched by the Swachh Bharat Mission-Urban 2.0 (SBM-U 2.0), under the aegis of the Ministry of Housing and Urban Affairs (MoHUA).
The Challenge seeks to harness the entrepreneurial potential of the waste management sector in India and promote an enabling environment for enterprise development under Swachh Bharat Mission-Urban 2.0.

The challenge seeks solutions in four thematic areas:

Social inclusion
Zero dumps (solid waste management)
Plastic waste management
Transparency through digital enablement
The challenge invites solutions not just from start-ups but also individual entrepreneurs, educational institutions, local businesses, research and development organizations, NGOs, and other citizen groups.
The top three solutions in each of the four thematic categories from across the country will be felicitated at the Swachh Survekshan award ceremony hosted by MoHUA.
Also, the top three state-level solutions will be rewarded with a cash prize by respective State governments.

4) MODEL TENANCY ACT, 2021

Ministry of Housing and Urban Affairs has passed the Model Tenancy Act, 2021.

Need of the Model Tenancy Law

Lack of a sound rental policy as despite acute housing shortage, over 1.10 Crore homes are lying vacant in the country’s urban areas.
The land is a state subject: Since land comes under state list, States have their own laws with long-drawn legal provisions which result in lengthy litigation to resolve disputes.

Owner side concerns:

Low rental yield is accrued from residential properties – averaging not more than 3% in major cities.
Existing rent control laws that put a ceiling on rent are restrictive in nature.

Tenant side concerns:

The affordability to own a house is a challenge especially for low-income households.
The non-availability of affordable accommodation was the key reason behind migrants leaving towns
amidst the COVID-19 pandemic.
Exorbitant increases in year-on-year rent and interference by the landlord have caused disputes.
This has made rental housing financially unattractive resulting in an informal sub-standard rental market
lacking basic amenities.

About Model Tenancy Act, 2021

It envisages balancing the interest and rights of both the owner and tenant and creating an accountable and transparent ecosystem for renting the premises in a disciplined and efficient manner.
The Model Act provides for its applicability for the whole of the State i.e., urban as well as rural areas in the State.

Features

Establish Rent courts and Tribunals
Rent Authority may direct for compensation on the person responsible for cutting off or
withholding the essential supply.
The act provides for a fast-track quasi-judicial mechanism for adjudication of disputes. Officer of the rank of deputy collector or higher will act as rent authority to adjudicate any issue arising out
of a rental disagreement.
Rent: All premises (residential or commercial) shall be rented only after a written agreement on
mutually agreed on terms.
Security Deposits: It proposes to cap the security deposit to a maximum of two months’ rent in the case of residential properties and a Security deposit to be refunded by the landlord at the time of taking over vacant possession of the premises.
Repair and Maintenance: If the landowner refuses to carry out the required repairs, the tenant
can get the work done and deduct the same from periodic rent.

How will the Model Tenancy Law be Beneficial?

It will encourage private participation in rental
housing for addressing the huge housing shortage across the country. Also, leading to
Formalization of the rental housing market.
It provides relief for both tenants and landlords and helps take some load off India’s overburdened litigation process.
It will enable the creation of adequate rental housing stock for various income segments of society including
migrants, formal and informal sector workers, professionals, students, etc.

5) Faecal Sludge and Septage Management

According to the NITI Aayog report Faecal sludge and septage management in urban areas, Service and business models, by 2021 more than 700 cities/towns are in various stages of Faecal Sludge and Septage Management (FSSM) implementation.

About:

India has recognized the gaps in sanitation coverage and embarked purposefully to address them, becoming one of the first countries to announce a national policy on FSSM in 2017.
FSSM prioritizes human excreta management, a waste stream with the highest potential for spreading diseases.
It is a low-cost and easily scalable sanitation solution that focuses on the safe collection, transportation, treatment, and reuse of human waste.
As a result, FSSM promises a means to achieve the Sustainable Development Goals (SDG) target 6.2 of adequate and inclusive sanitation for all in a time-bound manner.

Related Initiatives:

India has continued to show its commitment towards FSSM through the launch of Open Defecation-Free (ODF) + and ODF++ protocols, an emphasis on FSSM in Swachh Survekshan, as well as financial allocations for FSSM across Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and National Mission for Clean Ganga (NMCG) missions.

The capacity of India’s Sewage Treatment Plants:

According to the latest report of the Central Pollution Control Board (CPCB), Sewage Treatment Plants (STPs) in India can treat a little more than a third of the sewage generated per day.
India generated 72,368 MLD (million liters per day) whereas the installed capacity of STPs was 31,841 MLD (43.9%).
5 states and Union Territories (UT) - Maharashtra, Gujarat, Uttar Pradesh, Delhi, and Karnataka - account for 60% of the total installed treatment capacity of the country.

Issues with Solid Waste Management:

Absence of segregation of waste at source.
Lack of funds for waste management at Urban Local Bodies (ULB).
Lack of technical expertise and appropriate institutional arrangement.
The unwillingness of ULBs to introduce the proper collection, segregation, transportation, and treatment/disposal systems.
The indifference of citizens towards waste management is due to a lack of awareness.
Lack of community participation towards waste management and hygienic conditions.

6) One Nation-One Grid-One Frequency: National Grid

Recently, the Power Grid Corp. of India Ltd (PGCIL) celebrated the anniversary of the operationalization of One Nation-One Grid-One Frequency i.e National Grid.

Evolution of National Grid:

The national grid management on a regional basis started in the sixties.
The Indian Power system for planning and operational purposes is divided into five regional grids.
The integration of regional grids, and thereby the establishment of the National Grid, was conceptualized in the early nineties.
Initially, State grids were interconnected to form a regional grid, and India was demarcated into 5 regions namely Northern, Eastern, Western, North Eastern, and Southern regions.
In 1991 North Eastern and Eastern grids were connected. Further, in 2003, the Western region grid was connected with it.
In August 2006 North and East grids were interconnected thereby 4 regional grids are synchronously connected forming a central grid operating at one frequency.
On 31st December 2013, the southern region was connected to the Central Grid. Thereby achieving 'One Nation, One Grid, One Frequency’.
All possible measures are taken to ensure that the grid frequency always remains within the 49.90-50.05 Hz (hertz) band.

Importance of One Frequency

Maintaining a consistent electrical frequency is important because multiple frequencies cannot operate alongside each other without damaging equipment.

This has serious implications when providing electricity on a national scale.

The capacity of National Grid:

Presently, the country has a total inter-regional transmission capacity of about 1,12,250 MW which is expected to be enhanced to about 1,18,740 MW by 2022.

Benefits of One Nation-One Grid-One Frequency:

Matching Demand-Supply: Synchronisation of all regional grids will help in optimal utilization of scarce natural resources by transfer of Power from Resource centric regions to Load centric regions.
Development of Electricity Market: Further, this shall pave the way for the establishment of a vibrant Electricity market facilitating trading of power across regions.

7) GST Compensation Extension

Many states have demanded that the GST compensation cess regime be extended for another five years. Also, states have demanded that the share of the Union government in the centrally-sponsored schemes should be raised.
These demands are made as the Covid-19 pandemic has impacted their revenues.
The provision for GST compensation is going to end in June 2022.

About:

GST Taxation: The GST became applicable from 1st July 2017 after the enactment of the 101st Constitution Amendment Act, 2016.
With GST, a large number of central and state indirect taxes merged into a single tax.
GST Compensation: In theory, the GST should generate as much revenue as the previous tax regime. However, the new tax regime is taxed on consumption and not manufacturing.
This means that tax won’t be levied at the place of production which also means manufacturing states would lose out and hence several states strongly opposed the idea of GST.
It was to assuage these states that the idea of compensation was mooted.
The Centre promised compensation to the States for any shortfall in tax revenue due to GST implementation for a period of five years.
This promise convinced a large number of reluctant States to sign on to the new indirect tax regime.

Compensation Cess:

States are guaranteed compensation for any revenue shortfall below 14% growth (the base year 2015-16) for the first five years ending 2022.
GST compensation is paid out of Compensation Cess every two months by the Centre to states.
The compensation cess was specified by the GST (Compensation to States) Act, 2017.
All the taxpayers, except those who export specific notified goods and those who have opted for the GST composition scheme, are liable to collect and remit the GST compensation cess to the central government.
Compensation Cess Fund: The GST Act states that the cess collected and the amount as may be recommended by the GST Council would be credited to the fund.

Concerns of States:

Revenue Shortfall: The state’s GST revenue gap in 2020-21 is expected to be about Rs. 3 lakh crore, while cess collections are only projected to reach Rs. 65,000 crore, leaving a shortfall of Rs. 2.35 lakh crore.
Economic Slowdown: At a time when growth is faltering, the delays in paying compensation to states as guaranteed by the GST Act will make it more difficult for them to meet their own finances.
Decreasing Centre Devolution: Most states are of the view that the Centre’s share in centrally-sponsored schemes has gradually reduced and states' share has increased.
Due to this, their most significant demand is increasing share in centrally-sponsored schemes.

Goods and Services Tax

GST was introduced through the 101st Constitution Amendment Act, 2016.
It is one of the biggest indirect tax reforms in the country.
It was introduced with the slogan of ‘One Nation One Tax’.
The GST has subsumed indirect taxes like excise duty, Value Added Tax (VAT), service tax, luxury tax, etc.
It is essentially a consumption tax and is levied at the final consumption point.
This has helped mitigate the double taxation, cascading effect of taxes, the multiplicity of taxes, classification issues, etc., and has led to a common national market.
The GST that a merchant pays to procure goods or services (i.e. on inputs) can be set off later against the tax applicable on the supply of final goods and services.
The set-off tax is called an input tax credit.
The GST avoids the cascading effect of tax on tax which increases the tax burden on the end consumer.
Tax Structure under GST:
Central GST to cover Excise duty, Service tax, etc,
State GST to cover VAT, luxury tax, etc.
Integrated GST (IGST) to cover inter-state trade.
IGST per se is not a tax but a system to coordinate state and union taxes.
It has a 4-tier tax structure for all goods and services under the slabs- 5%, 12%, 18%, and 28%.

8) Statehood Demand by Puducherry

Recently, the Chief Minister of Puducherry has demanded Statehood for the Union Territory (UT) of Puducherry.
The demand for Statehood is a long pending issue for Puducherry making it unable to exercise any powers for creating employment potential by inviting more industries to Puducherry and also creating infrastructure facilities for tourism.

Background:

When the Constitution of India was adopted in 1949, the Indian federal structure included:
Part A: Former British India provinces that had a Governor and a legislature.
Part B: The former Princely States that were governed by a Rajpramukh.
Part C: Chief Commissioners' provinces and some princely states that were governed by Chief Commissioner.
Part D: Territory of Andaman and Nicobar Islands that was governed by a Lieutenant Governor who was appointed by the Central Government.
After the States Reorganisation Act of 1956, Part C and Part D states were combined into a single category of 'Union Territory'. The concept of the UT was added by the Constitution (Seventh Amendment) Act, 1956.

Reasons for Demand:

Linguistic and cultural reasons are the primary basis for creating new states in the country.
Other factors are:
Competition for local resources.
Government negligence towards certain regions
Improper allocation of the resources,
Difference in culture, language, religion, etc.
The economy's failure to create enough employment opportunities
Popular mobilization and the democratic political process are also one of the reasons.
‘The sons of the soil' sentiments.

Issues Arising Due to Creation of New States:

Different statehood may lead to the hegemony of the dominant community/ caste/ tribe over their power structures.
This can lead to the emergence of intra-regional rivalries among the sub-regions.
The creation of new states may also lead to certain negative political consequences like a small group of legislators could make or break a government at will.
There is also a possibility of an increase in inter-State water, power, and boundary disputes.
The division of states would require huge funds for building new capitals and maintaining a large number of administrators as was the case in the division of Andhra Pradesh and Telangana.
The creation of smaller states only transfers power from the old state capitol to new state capital without empowering already existing institutions like Gram Panchayat, District Collector, etc. rather than diffusion of development in the backward areas of the states.

Constitutional Provisions:

The Indian constitution empowers the Union government to create new states out of existing states or to merge one state with another. This process is called the reorganization of the states.
As per Article 2 of the Indian Constitution, Parliament may by law admit into the Union, or establish, new States on such terms and conditions.
As per Article 3 of the Indian Constitution, the Union Government has the power to form a State, increase or decrease the size of any State, and alter the boundaries or name of any State.