DAILY CURRENT AFFAIRS 15 SEPTEMBER 2019

   DAILY CURRENT AFFAIRS 

      15 SEPTEMBER 2019

BY SUMIT BHARDWAJ

IMPORTANT TOPICS FOR TODAY

1.Nirmala Sitharaman unveils package to boost exports, revive housing sector(GS-3)

• CONTEXT:Union Finance Minister Nirmala Sitharaman on Saturday announced a third set of government decisions to revive the economy, including a RS 50,000 crore export incentive scheme and a RS 10,000 crore special window to provide last mile funding for unfinished housing projects.
• The decisions announced by the Minister at a press conference on Saturday follow two previous mega announcements designed to encourage private sector investment, and bring further stability into the banking system through several public sector bank mergers.
• For the housing sector, the most notable decision was the setting up of a special fund that would provide last-mile funding for housing projects that are not categorised as non-performing assets and are not undergoing National Company Law Tribunal proceedings.
• The third set of announcements focussed on providing a fillip to exports, which contracted 6.05% in August, and easing the plight of home buyers.

HOUSING PACKAGE:

For the housing sector, the most notable decision was the setting up of a special fund that would provide last-mile funding for housing projects that are not categorised as non-performing assets and are not undergoing National Company Law Tribunal proceedings.

EXPORT PACKAGE:

On exports, Ms. Sitharaman said, “One major decision is that of the setting up of the Scheme for Remission of Duties or Taxes on Export Product (RoDTEP), which will replace the Merchandise Exports from India Scheme (MEIS).” “The existing dispensation in textiles of MEIS and the old ROSL (Rebate of State Levies) will continue up to December 31, 2019,” the Minister added.

To increase bank credit to exporters, the Export Credit Guarantee Corporation (ECGC) will expand the scope of its Export Credit Insurance Scheme to provide a higher insurance cover to banks that are lending working capital for exports.

ALSO

In an attempt to increase bank credit for home buyers, the government also said the external commercial borrowing guidelines will be relaxed to facilitate financing for home buyers who are eligible under the Pradhan Mantri Awas Yojana, and that the interest rate on house building advances will be lowered and linked with the 10 Year Government Security yields.

National Company Law Tribunal :

• The Central Government has constituted National Company Law Tribunal (NCLT) under section 408 of the Companies Act, 2013.
  The National Company Law Tribunal NCLT is a quasi-judicial body, exercising equitable jurisdiction, which was earlier being exercised by the High Court or the Central Government. The Tribunal has powers to regulate its own procedures.
  The establishment of the National Company Law Tribunal (NCLT) consolidates the corporate jurisdiction of the following authorities:
  1. Company Law Board
  2. Board for Industrial and Financial Reconstruction.
  3. The Appellate Authority for Industrial and Financial Reconstruction
  4. Jurisdiction and powers relating to winding up restructuring and other such provisions, vested in the High Courts.
  In the first phase the Ministry of Corporate Affairs have set up eleven Benches, one Principal Bench at New Delhi. These Benches will be headed by the President and 16 Judicial Members and 09 Technical Members at different locations.
  Powers of NCLT
  The NCLT has been empowered to exercise the following powers:
  1. Most of the powers of the Company Law Board under the Companies Act, 1956.
  2. All the powers of BIFR for revival and rehabilitation of sick industrial companies;
  3. Power of High Court in the matters of mergers, demergers, amalgamations, winding up, etc.;
  4. Power to order repayment of deposits accepted by Non-Banking Financial Companies as provided in section 45QA of the Reserve Bank of India Act, 1934;
  5. Power to wind up companies;
  6. Power to Review its own orders.
  The NCLT shall have powers and jurisdiction of the Board for Industrial and Financial Reconstruction (BIFR), the Appellate Authority for Industrial and Financial Reconstruction (AAIFR), Company Law Board, High Courts relating to compromises, arrangements, mergers, amalgamations and reconstruction of companies, winding up etc. Thus, multiplicity of litigation before various courts or quasi-judicial bodies or forums have been sought to be avoided. The powers of the NCLT shall be exercised by the Benches constituted by its President.
  Significance of NCLT
  Resolution of disputes relating of companies affairs has been one the major roadblock in improving ease of doing business in India. Thousands of cases remain long pending in the courts despite having legal timeline of resolution. Such scenario hinder the new investments not only from outside even domestic companies are preferring to shift their Headquarters outside the countries and choosing more business amicable locations like Singapore to operate. Delay in dispute resolution not only stagnate the new investments it also lead to devaluation of assent and increases inefficiencies of businesses and market.
  Till 2016 several bodies like the Company Law Board, Board of Industrial and Financial Reconstruction, the Appellate Authority for Industrial and Financial Reconstruction and High Courts were responsible for the judging the disputes concerning companies affairs, this multiplicity  of adjudicating and governing bodies was also delaying the dispute resolution process.
  The formation of the NCLT and the NCLAT is also a significant step towards attaining fast and efficient resolution of disputes relating to affairs of the Indian corporates. Being the sole forum dealing with company related disputes, these tribunals would also eliminate any scope for overlapping or conflicting rulings and minimise delays in resolution of disputes, thus, proving to be a boon for litigants.
  Instead of getting different decisions on the same matter by different High Courts, consolidation of jurisdiction will help the Tribunal Members and Judges in delivering uniform decisions and thereby removing any ambiguity and friction.
  To ensure fair play and avoidance of judicial error, the procedural laws provide for appeals, revisions and reviews, and allow parties to file innumerable applications and raise vexatious objections as a result verdict get delayed.
  Appeals against the order of the NCLT will go to NCLAT, exclusively dedicated for this purpose. Further appeal to the  Supreme Court will only be on any question of law, thereby reducing the delay in appeals as earlier, the decisions of the Company Law Board were challenged before the High Court and then in the Supreme Court.
  Consolidation of Corporate jurisdiction will lead to convergence rather than divergence and will maintain uniformity in the system.

Pradhan Mantri Awas Yojana:(Urban) 

The Pradhan Mantri Awas Yojana (Urban) Programme launched by the Ministry of Housing and Urban Poverty Alleviation (MoHUPA), in Mission mode envisions provision of Housing for All by 2022, when the Nation completes 75 years of its Independence.

EARLIER PROGRESS 

The beneficiaries are poor and people living under EWS and LIG categories in the country.

The scheme is divided into three phases. In the first phase, a total of 100 cities will be covered from April 2015 to March 2017. In phase two, 200 cities will be covered from April 2017 to March 2019. In the third phase, the leftover cities will be covered from April 2019 to March 2022.

The government is providing an interest subsidy of 6.5% on housing loans which can be availed by beneficiaries for 15 years from start of loan date.

The government will grant Rs 1 lakh to all the beneficiaries of the scheme. In addition, Rs 1.5 lakh will be given to all eligible urban poor who want to construct their houses in urban areas or plan to go for renovation in their existing houses. One can also avail loans under this scheme to build toilets in existing houses.

2.Yemen rebel drones hit two Saudi Aramco plants, sources say oil supplies disrupted(GS-2,3)

• CONTEXT:Yemen's Iran-aligned Houthi group on Saturday attacked two plants at the heart of Saudi Arabia's oil industry, including the world's biggest petroleum processing facility, in a strike that three sources said had disrupted output and exports.
• Two sources close to the matter said 5 million barrels per day of crude production had been impacted - close to half of the kingdom's output or 5% of global oil supply.
• The pre-dawn drone attack on the Saudi Aramco facilities set off several fires, although the kingdom, the world's largest oil exporter, later said these were brought under control.
• State television said exports were continuing, however Aramco has yet to comment since the assault, which the Houthis said involved 10 drones. Authorities have not said whether oil production or exports were affected.
• The attacks occurred as Aramco accelerates plans for an initial public offering of the state oil giant to as early as this year, and follow earlier cross-border attacks on Saudi oil installations and on oil tankers in Gulf waters. Saturday's attacks appeared to be the most brazen yet.
• Saudi Arabia, leading a Sunni Muslim military coalition that intervened in Yemen in 2015 against the Houthis, has blamed regional rival Shi'ite Iran for previous attacks, which Tehran denies. Riyadh accuses Iran of arming the Houthis, a charge denied by the group and Tehran.
• Abqaiq is 60km (37 miles) southwest of Aramco's Dhahran headquarters. The oil processing plant handles crude from the world's largest conventional oilfield, the supergiant Ghawar, and for export to terminals Ras Tanura - the world's biggest offshore oil loading facility - and Juaymah. It also pumps westwards across the kingdom to Red Sea export terminals.
• Two of the sources said Ghawar was flaring gas after the strikes disrupted gas processing facilities. Khurais, 190 km (118 miles) further southwest, contains the country's second largest oilfield.
• Many Western employees of Aramco live in Abqaiq. The U.S. Embassy in Riyadh said it was unaware of any injuries to Americans from the attacks.
• Fellow Gulf OPEC producers the United Arab Emirates and Kuwait voiced support for any measures by Saudi Arabia to safeguard its security.
• The violence is complicating U.N.-led peace efforts to end the Yemen war which has killed tens of thousands and pushed millions to the brink of famine. The conflict is widely seen as a proxy war between Saudi Arabia and Iran.
• The coalition intervened in Yemen to try to restore the internationally recognised government ousted from power in Sanaa by the Houthis, who say they are fighting a corrupt system.

The Houthi insurgency :

• The Houthi insurgency in Yemen,also known as the Houthi rebellion, Sa'dah War, or Sa'dah conflict, was a military rebellion pitting Zaidi Shia Houthis (though the movement also includes Sunnis) against the Yemeni military that began in Northern Yemen and has since escalated into a full-scale civil war. The conflict was sparked in 2004 by the government's attempt to arrest Hussein Badreddin al-Houthi, a Zaidi religious leader of the Houthis and a former parliamentarian on whose head the government had placed a $55,000 bounty.Initially, most of the fighting took place in Sa'dah Governorate in northwestern Yemen, but some of the fighting spread to neighbouring governorates Hajjah, 'Amran, al-Jawf and the Saudi province of Jizan. Since 2014 the nature of the insurgency has changed with the Houthi takeover in Yemen and then into the ongoing Yemeni civil war (2015–present) with a major Saudi-led intervention in Yemen beginning in 2015.
• General Ali Mohsen al-Ahmar commanded the Yemeni security forces during the conflict and led all the government offensives from 2004 until 2011, when he resigned his post to defend protesters during the Yemeni Revolution.
• A Houthi power grab in Sanaa escalated on 20 January 2015, when the rebels attacked the president's residence and swept into the presidential palace. President Abed Rabbo Mansour Hadi was inside the residence as it came under "heavy shelling" for half an hour, but he was unharmed and protected by guards, according to Information Minister Nadia Al-Sakkaf. Presidential guards surrendered the residence after being assured that Hadi could safely evacuate. The U.N. Security Council called an emergency meeting about the unfolding events. United Nations Secretary-General Ban Ki Moon expressed concern over the "deteriorating situation" in Yemen and urged all sides to cease hostilities.[On 22 January, President Abed Rabbo Mansour Hadi and Prime Minister Khaled Bahah tendered their resignations to parliament, which reportedly refused to accept them.

Aramco:Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national petroleum and natural gas company based in Dhahran, Saudi Arabia. It is one of the largest companies in the world by revenue, and according to accounts seen by Bloomberg News, the most profitable company in the world

ARMACO- INDIA RELATIONS:

RECENT DEVELOPMENTS BETWEEN THE BOTH:

• An Indian consortium comprising IOCL, BPCL and HPCL has signed a Memorandum of Understanding (MoU) with Saudi Aramco, the world’s largest oil producer to jointly develop and build Ratnagiri Refinery in Maharashtra.
• Reliance Industries Ltd (RIL) is in the process of selling a 20% stake in the company’s flagship chemicals and refining business to Saudi Aramco in a deal valued at $15 billion, as the Indian company seeks to cut its massive debt and secure an assured supply of crude oil to its refineries.

OPEC (ORGANIZATION OF THE PETROLEUM EXPORTING COUNTRIES ):

• The Organization of the Petroleum Exporting Countries (OPEC) is a group of oil-producing nations that was first established in Baghdad, Iraq, in 1961. OPEC is one of the most powerful international organizations in the world and was a major player in the shift towards state control over natural resources.

Membership:

• The OPEC Statute distinguishes between the Founder Members and Full Members – those countries whose applications for membership have been accepted by the Conference.
• The Statute stipulates that “any country with a substantial net export of crude petroleum, which has fundamentally similar interests to those of Member Countries, may become a Full Member of the Organization, if accepted by a majority of three-fourths of Full Members, including the concurring votes of all Founder Members.”
• The Statute further provides for Associate Members which are those countries that do not qualify for full membership, but are nevertheless admitted under such special conditions as may be prescribed by the Conference.
• Currently, the Organization has a total of 15 Member Countries. The current OPEC members are the following: Algeria, Angola, Ecuador, Equatorial Guinea, 
• Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, the Republic of the Congo, Saudi Arabia, United Arab Emirates, and Venezuela. 
• Indonesiais a former member, and Qatar will no longer be the member of OPEC starting on 1 January 2019.

3.Is India likely to ban single-use plastics soon?(GS-3)

AN ARTICLE WRITTEN BY Jacob Koshy- VERY IMPORTANT FROM ENVIRONMENT CONSERVATION POINT OF VIEW.

• 10,000 tonnes of plastic waste is left uncollected every day
• India’s policy on single-use plastic has been much in the news, with reports that a ban is in the offing. What are single-use plastics and why aren’t they history if they pose a major environmental threat.
• What is single-use plastic?
• Single-use plastics, often also referred to as disposable plastics, are commonly used for packaging and include items intended to be used only once before they are thrown away or recycled. These include, among other items, grocery bags, food packaging, bottles, straws, containers, cups and cutlery. Plastic packaging is mostly single-use, especially in business-to-consumer applications, and a majority of it is discarded the same year it is produced. Such plastics are problematic because they are not biodegradable.
• Is there an imminent ban on single-use plastic?
• There is no ban in the works. Union Minister for Environment and Forests Prakash Javadker in a briefing said: “...Prime Minister Narendra Modi didn’t say ‘ban’, but said ‘goodbye’ to single-use plastic waste. From October 2, we will begin an attempt to collect all that waste. Nearly 10,000 tonnes of plastic waste remains uncollected.”
• This was in the context of Mr. Modi’s exhortations to Indians to eschew the use of single-use plastic by October 2, the 150th birth anniversary of Mahatma Gandhi.
• Why is it difficult to ban single-use plastics?
• India has Plastic Waste Management Rules, 2018. One of its key obligations is to have industries that make products that ultimately employ plastic (and generate plastic waste) collect a fixed percentage every year. The State Pollution Control Boards as well municipalities have the responsibility to ensure that plastic waste is collected and sent to recycling units.
• Compared to other countries such as the U.S. and China, India has very low per capita generation of plastic waste. However, in real terms, this is quite substantial and nearly 10,000 tonnes of plastic waste is left uncollected every day.
• Studies by organisations like The Energy Resources Institute (TERI) on landfills have found that 10.96% of waste was only plastic and of these, non-recyclable plastics accounted for 9.6%. The disparity is because certain kinds of plastic, such as PET bottles are remunerative for rag pickers as they are in demand at recycling facilities.

Plastic Waste Management (Amendment) Rules 2018:

• The Ministry of Environment, Forest and Climate Change has notified the Plastic Waste Management (Amendment) Rules 2018 on March 27, 2018.
• The amended Rules lay down that the phasing out of Multilayered Plastic (MLP) is now applicable to MLP, which are "non-recyclable, or non-energy recoverable, or with no alternate use."
• The amended Rules also prescribe a central registration system for the registration of the producer/importer/brand owner. The Rules also lay down that any mechanism for the registration should be automated and should take into account ease of doing business for producers, recyclers and manufacturers. The centralised registration system will be evolved by Central Pollution Control Board (CPCB) for the registration of the producer/importer/brand owner. While a national registry has been prescribed for producers with presence in more than two states, a state-level registration has been prescribed for smaller producers/brand owners operating within one or two states.
• In addition, Rule 15 of the Plastic Waste Management (Amendment) Rules 2018 on "explicit pricing of carry bags" has been omitted.

The Energy Resources Institute (TERI):

• TERI is a non-profit research institution that conducts research work in the fields of energy, environment and sustainable development.
• Established in 1974 as Tata Energy Research Institute and was renamed The Energy and Resources Institute in 2003.
• It aims to focus on formulating local and national level strategies for shaping global solutions to critical issues.
• It conducts research work in the fields of energy, environment and sustainable development.
• Its key focus lies in promoting clean energy, water management, pollution management, sustainable agriculture and climate resilience.

4.Climate change can reduce banana yield in India, study finds(GS-3)

• CONTEXT:Global warming in the last about 60 years had helped increase banana yield at annual rate of 0.024 tonnes per hectare translating to an average increase of 1.37 tonnes per hectare in 27 countries since the 1960s. But with continued warming, the yield gains could slow down or even reverse in some countries leading to a drop in yields — 0.59-0.19 tonnes per hectare — by 2050, a study published in Nature Climate Change finds.
• India, which is the world’s largest producer and consumer of banana, along with nine other countries such as Brazil will see a reduction in the yield, the University of Exeter study finds.
• At the same time, certain other countries — Ecuador and Honduras, and many in Africa — will witness an overall increase in crop yields.
• “India could experience a major reversal with predicted negative effects of future climate change compared to positive effects in the past,” the authors write. But the decline in production due to climate change in the case of India may be mitigated by strong, technology-driven measures to increase the yield.
• According to the Food and Agriculture Organisation (FAO) with 29 million tonnes produced per year between 2010 and 2017, India is the world’s number one producer of banana. Over 29% of the world’s banana production is in India. The average yield of banana in India is around 60 tonnes per hectare, according to the FAO. During the same period (2010 and 2017), China, which is second largest producer globally, produced about one-third of India — 11 million tonnes per year.

Food and Agriculture Organisation (FAO):

The Food and Agriculture Organization (FAO) is specialized agency of the United Nations that leads international efforts to defeat hunger.

Headquarters: Rome, Italy

Founded: 16 October 1945

Goal of FAO: Their goal is to achieve food security for all and make sure that people have regular access to enough high-quality food to lead active, healthy lives.

FAO Council –

Origin: Established by the Conference at its Third Session (1947) to replace the original “Executive Committee of FAO” in accordance with a recommendation of the Preparatory Commission on World Food Proposals.

Purpose: The Council, within the limits of the powers, acts as the Conference’s executive organ between sessions.

It exercises functions dealing with the world food and agriculture situation and related matters, current and prospective activities of the Organization, including its Programme of Work and Budget, administrative matters and financial management of the Organization and constitutional matters.

5.President Ram Nath Kovind Unveils Mahatma Gandhi's Bust In Switzerland(GS-1,2)

• CONTEXT:President Ram Nath Kovind  unveiled the bust of Mahatma Gandhi, marking the 150th anniversary of the Father of the Nation and hoped that his legacy will inspire the mankind to tackle climate change and conserve ecology.
• President Kovind, in a special event organised in the city, thanked the commune of Villeneuve for celebrating Gandhi's legacy and naming a Square after him.
• "He built his first hermitage in India on the banks of River Sabarmati. Today, we have brought him to the banks of Lake Geneva. You have given him a special place, close to nature and close to your hearts. It is a fitting tribute to a man who loved nature and cared so much for it," he said.
• Noting that his teachings remain relevant even today, President Kovind said, "his legacy shall inspire us as we work together to tackle climate change and to conserve our ecology."
• The president highlighted the "special connection" Mahatma Gandhi had with Villeneuve as he visited the town in 1931 at the invitation of Noble laureate Romain Rolland.
• "In Villeneuve, Romain Rolland played Beethoven for him. They had long conversations on the Great War that had ravaged Europe and how peace could be secured for future generations," he said.
• Drawing a parallel between the commune system in Switzerland and the Indian village republics, President Kovind said, "Gandhian thought has yet another connection with you. The communes have a distinct social and political role in Swiss democratic polity. It is very much similar to the way Mahatma Gandhi laid down his concept of Gram Swaraj or Village Republics."
• President Kovind said that Mahatma Gandhi believed in the oneness of humanity.
• "He embraced all cultures and all peoples. He listened to Hindu religious songs and western classical music with equal ease and understanding," he said.
• The president recalled that the two countries last year celebrated the 70th Anniversary of the India-Switzerland Treaty of Friendship signed in 1948.
• "This was the first Treaty of Friendship that India signed as an independent nation. The seed of amity that we sowed then, has today grown into a luxuriant tree of mutual trust, cooperation and understanding," he said.

Mahatma Gandhi’s Early Movements [Modern Indian History Notes ](REVISION)

The Rise of Gandhi in Indian Freedom Struggle

• M K Gandhi returned from South Africa (where he had lived for more than 20 years) to India in 1915. There he had led a peaceful agitation against the discrimination meted out to Indians and had emerged as a respected leader. It was in South Africa that he developed his brand of Satyagraha. In India, he first used this tool against the British government at Champaran in Bihar.

Champaran Satyagraha (1917)

• The first civil disobedience movement by Gandhi in the freedom struggle.
• Persuaded by Rajkumar Shukla, an indigo cultivator, Gandhi went to Champaran in Bihar to investigate the conditions of the farmers there.
• The farmers were suffering under heavy taxes and an exploitative system. They were forced to grow indigo by the British planters under the tinkathia system.
• Gandhi arrived in Champaran to investigate the matter but was not permitted by the British authorities to do so.
• He was asked to leave the place but he refused.
• He was able to gather support from the farmers and masses.
• When he appeared in court in response to a summons, almost 2000 locals accompanied him.
• The case against him was dropped and he was allowed to conduct the inquiry.
• After peaceful protests against the planters and landlords led by Gandhi, the government agreed to abolish the exploitative tinkathia system.
• The peasants also received a part of the money extracted from them as compensation.
• Champaran struggle is called the first experiment on Satyagraha by Gandhi.
• It was during this time that Gandhi was given the names ‘Bapu’ and ‘Mahatma’ by the people.

Kheda Satyagraha (1918)

• 1918 was a year of failed crops in the Kheda district of Gujarat due to droughts.
• As per law, the farmers were entitled to remission if the produce was less than a quarter of the normal output.
• But the government refused any remission from paying land revenue.
• Sardar Vallabhbhai Patel, under Gandhi’s guidance, led the farmers in protest against the collection of taxes in the wake of the famine.
• People from all castes and ethnicities of the district lend their support to the movement.
• The protest was peaceful and people showed remarkable courage even in the face of adversities like confiscation of personal property and arrest.
• Finally, the authorities gave in and gave some concessions to the farmers.

Ahmedabad Mill Strike (1918)

• Gandhi used Satyagraha and hunger strike for the first time during an industrial dispute between the owners and workers of a cotton mill in Ahmedabad.
• The owners wanted to withdraw the plague bonus to the workers while the workers were demanding a hike of 35% in their wages.
• During the peaceful strike led by Gandhi, he underwent a hunger strike.
• The strike was successful and the workers were granted the wage hike they wanted.
• In all these movements, Gandhi was able to involve the masses including farmers, artisans and even the so-called lower castes. This was a change from the previous movements when the participation was limited to the upper and the middle classes.