CURRENT AFFAIRS 24 SEPTEMBER 2019

CURRENT AFFAIRS 

24 SEPTEMBER 2019

BY SUMIT BHARDWAJ

IMPORTANT NEWS ARTICLES ANALYSIS

1.Registrar General of India (RGI) and National Population Register (NPR)

Context: Amit Shah moots 1 card for all utilities

Home Minister says 2021 census will be digital and could prepare a base for it.(gs-2)

Registrar General of India (RGI) :

• Registrar General and Census Commissioner of India, founded in 1961 by Government of India Ministry of Home Affairs, for arranging, conducting and analysing the results of the demographic surveys of India including Census of India and Linguistic Survey of India. The position of Registrar is usually held by a civil servant holding the rank of Joint Secretary.
• RGCCI (population survey and language survey) as well as ASI (archaeology), AnSI (Anthropological Survey of India), BSI (botany), FSI (forests), FiSI (fisheries), GSI (geology), IIEE (ecology), NIO (oceanography), SI (cartography) and ZSI (zoology) are key national survey organisations of India
• National Population Register (NPR) will be conducted in September 2020.

About National Population Register (NPR):

• It is a Register of usual residents of the country.
• It is being prepared at the local (Village/sub-Town), sub-District, District, State and National level under provisions of the Citizenship Act 1955 and the Citizenship (Registration of Citizens and issue of National Identity Cards) Rules, 2003.
• It is mandatory for every usual resident of India to register in the NPR.
• Definition: A usual resident is defined for the purposes of NPR as a person who has resided in a local area for the past 6 months or more or a person who intends to reside in that area for the next 6 months or more.
• The NPR database would contain demographic as well as biometric details.
• As per the provisions of the NPR, a resident identity card (RIC) will be issued to individuals over the age of 18. This will be a chip-embedded smart card containing the demographic and biometric attributes of each individual. The UID number will also be printed on the card.

Objectives:

• The objective of the NPR is to create a comprehensive identity database of every usual resident in the country. The database would contain demographic as well as biometric particulars.

2.Balakot 

Context:Rawat hints at stronger action as Pak. revives Balakot camp 500 people waiting to infltrate, says Chief of Army Staff(gs-3)

Pakistan as a Terror Launch Pad:

• Pakistan has always refused any involvement in the region’s instability due to terrorism or it acting as a safe haven to terrorism.
• However it continues to remain a safe haven for terrorist organisations such as Jaish-e-Mohammad, Jammat-ud-dawa which continues to operate in Pakistan unabatedly.
• Terrorist outfits have launched multiple attacks on Indian soil ranging from 2001 parliament attack, 26/11 Mumbai attack, and Uri attack in 2016 to the latest Pulwama attack in February 2019.
• This attitude of shirking away from its responsibility has changed with Indian government building international pressure on Pakistani dispensation and providing proofs to both international community as well as Pakistani government wherever required.
• International community too believes that Pakistan does harbour terrorist groups that act against India irrespective of whether the state facilitates them or not.

Balakot Airstrikes:

DISCLAIMER:THE IMAGE IS FOR REPRESENTATION PURPOSE ONLY

A suicide terror attack was conducted by a Pakistan-based terrorist organization Jaish-e-Mohammad (JeM) which led to the martyrdom of 40 brave jawans of the CRPF.

The terrorist organisation JeM has been active in Pakistan for the last two decades and is led by Masood Azhar with its headquarters in Bahawalpur.

JeM has been responsible for a series of terrorist attacks including on the Indian Parliament in December 2001 and the Pathankot airbase in January 2016.

Even though India provided location of training camps in Pakistan from time to time, Pakistan continued to deny their existence and Pakistan has taken no concrete actions to dismantle infrastructure of terrorism on its soil.

The existence of such massive training facilities capable of training hundreds of jihadis could not have functioned without the knowledge of Pakistan authorities.

India has struck biggest training camp of JeM in Balakot. A large number of JeM terrorists, trainers, senior commanders and groups of jihadis who were being trained for fidayeen action were eliminated. This facility at Balakot was headed by Maulana Yousuf Azhar (alias Ustad Ghouri), brother-in-law of Masood Azhar, chief of JeM.

3.PM Modi vows to more than double India’s non-fossil fuel target to 450 GW by 2022(gs-3)

Context:India’s renewable energy target will be increased to 450 GW, Prime Minister Narendra Modi said at the United Nations Climate Action Summit here on Monday.

speaking in Hindi, Mr. Modi reiterated India’s commitment to the creation of 175 GW renewable energy capacity by 2022 under the Paris Climate Agreement. “What is needed today is a comprehensive approach which covers education, values and everything from lifestyle to developmental philosophy... What we need is a global people’s movement to bring about behavioural change.”

To read about United Nations Climate Action Summit click here..United Nations Climate Action Summit

To watch Prime minister’s address at United Nations Climate Action Summit click here..PM Modi addresses UN Summit on climate change

4.2015 Paris climate accord(gs-3)

Context:Russia formally accepts 2015 Paris climate accord

Russia said it would implement the 2015 Paris Agreement to fight climate change after Prime Minister Dmitry Medvedev on Monday approved a government resolution signifying Moscow’s final acceptance of the deal.

Russia is the world’s fourth largest emitter of greenhouse gases and the biggest emitter not to have ratified the landmark global climate deal.

2015 Paris climate accord:

• The Paris Agreement (French: Accord de Paris)is an agreement within the United Nations Framework Convention on Climate Change (UNFCCC), dealing with greenhouse-gas-emissions mitigation, adaptation, and finance, signed in 2016. The agreement's language was negotiated by representatives of 196 state parties at the 21st Conference of the Parties of the UNFCCC in Le Bourget, near Paris, France, and adopted by consensus on 12 December 2015.As of March 2019, 195 UNFCCC members have signed the agreement, and 186 have become party to it.The Paris Agreement's long-term goal is to keep the increase in global average temperature to well below 2 °C above pre-industrial levels; and to limit the increase to 1.5 °C, since this would substantially reduce the risks and effects of climate change.
• Under the Paris Agreement, each country must determine, plan, and regularly report on the contribution that it undertakes to mitigate global warming.No mechanism forces a country to set a specific target by a specific date,but each target should go beyond previously set targets. In June 2017, U.S. President Donald Trump announced his intention to withdraw the United States from the agreement. Under the agreement, the earliest effective date of withdrawal for the U.S. is November 2020, shortly before the end of President Trump's current term. In practice, changes in United States policy that are contrary to the Paris Agreement have already been put in place.

• In July 2017 French Environment Minister Nicolas Hulot announced a plan to ban all petrol and diesel vehicles in France by 2040 as part of the Paris Agreement. Hulot also stated that France would no longer use coal to produce electricity after 2022 and that up to €4 billion will be invested in boosting energy efficiency.To reach the agreement's emission targets, Norway will ban the sale of petrol and diesel-powered cars by 2025;the Netherlands will do the same by 2030.Electric trains running on the Dutch national rail network are already entirely powered by wind energy.The House of Representatives of the Netherlands passed a bill in June 2018 mandating that by 2050 the Netherlands will cut its 1990 greenhouse-gas emissions level by 95 percent—exceeding the Paris Agreement goals.

5.Indices clock best-ever two-day rally(gs-3)

Context:The strong surge in equities, that started on Friday on the back of a cut in corporate tax rates and other incentives for India Inc., continued on Monday with the benchmark indices registering their best-ever two-day rally.

The 30-share Sensex gained 1,075.41 points, or 2.83%, to close above the psychological 39,000-mark at 39,090.03. The index has gained almost 3,000 points — 2,996.56 to be precise — in just two trading sessions.

Corporate tax rates cut :Context: Finance Minister Nirmala Sitharaman has announced major changes in corporate income tax rates to revive growth in the broader economy. This has been achieved through an ordinance– the Taxation Laws (Amendment) Ordinance 2019.

What has the government done?

• Corporate tax rate to be 22 per cent without exemptions.
• No Minimum Alternate Tax (MAT) applicable on such companies.
• Effective corporate tax rate after surcharge and cess to be 25.17 percent.
• To attract investment in manufacturing, local companies incorporated after October 2019 and till March 2023, will pay tax at 15 percent.
• That effective tax for new companies shall be 17.01 percent, including cess and surcharge. Companies enjoying tax holidays would be able to avail concessional rates post the exemption period.
• Will give MAT relief for those opting to continue paying surcharge and cess. MAT has been reduced to 15 percent from 18.5 percent for companies who continue to avail exemptions and incentives.
• To stabilise flow of funds into the market the enhanced surcharge announced in Budget 2019 will not apply on capital gains arising on sale of any security, including derivatives by foreign portfolio investors (FPI).
• For listed companies which made announcement for public buyback before July 2019 it is provided that tax on buyback on shares of such companies will not be charged.
• 
  

Benefits associated:

Alter the profitability dynamic of the Indian corporate ecosystem.

Given the substantially lower rates would imply that many corporates will break even much ahead than what would have been the case with the earlier rates.

Lower taxes should, ideally, result is higher profit margins. This should bolster their books, and some of these companies should be able to pass on the higher margins in the form of lower product prices to consumers.

Lower corporate income tax rates and the resultant change in profitability will likely prompt companies to invest more, raising their capital expenditure (capex).

Additional capacities will, eventually, through a secondary round effect, prompt these companies to hire more employees.

Why has the government brought an ordinance to bring in these changes?

Changes in income tax rates (both corporate and individual) require legislative amendments. These require Parliamentary ratification. When the Parliament is not in session, the government can bring these changes through an Ordinance and later bring a Bill when Parliament convenes.

Concerns over the rate cut?

The revenue foregone for the government because of the latest corporate income tax cuts will be to the tune of Rs 1.45 lakh crore a year.

This has triggered concerns of fiscal slippage, given that tax collections have been far below the budgeted estimates.

The government has set a fiscal deficit target of 3.3 percent of GDP for 2019-20. Lower tax revenues could upset the fiscal math.

How will the corporate tax cuts be funded?

The government may fund part of the revenue foregone because of corporate tax cuts through the additional transfer of dividends and surplus from the Reserve Bank of India (RBI).

6.SBI to link floating rate retail, MSME loans to repo rate(gs-3)

Context:State Bank of India (SBI), the country’s largest lender, decided to link all the floating rate retail loans and loans to micro, small and medium enterprises (MSME) to the Reserve Bank of India’s (RBI) repo rate, with effect from October 1.

In July, SBI had linked home loans to the repo rate but decided to discontinue the product earlier this month after the RBI came out with guidelines, mandating external benchmark-based floating rate products.

REPO RATE:

The term ‘Repo’ stands for ‘Repurchase agreement’. Repo is a form of short-term, collateral-backed borrowing instrument and the interest rate charged for such borrowings is termed as repo rate. In India, repo rate is the rate at which Reserve Bank of India lends money to commercial banks in India if they face a scarcity of funds. Commercial banks sell government securities and bonds to Reserve Bank of India with an agreement to repurchase the securities and bonds from Reserve Bank of India on a future date at a pre-determined price including interest charges. 

External Benchmark Rates:

The Reserve Bank of India has made it mandatory for all banks to link all new floating rate loans (i.e. personal/retail loans, loans to MSMEs) to an external benchmark with effect from 1st October 2019. The move is aimed at faster transmission of monetary policy rates.

Banks can choose from one of the four external benchmarks — repo rate, three-month treasury bill yield, six-month treasury bill yield or any other benchmark interest rate published by Financial Benchmarks India Private Ltd.

At present, interest rates on loans are linked to a bank’s marginal cost of fund-based interest rate, known as the Marginal Cost of Lending Rate (MCLR).

Existing loans and credit limits linked to the MCLR, base rate or Benchmark Prime Lending Rate, would continue till repayment or renewal.

Those customers wanting to switch to the repo-linked rate can do so on mutually acceptable terms.

Adoption of multiple benchmarks by the same bank is not allowed within a loan category.

The interest rate under the external benchmark shall be reset at least once every three months.

Fixed vs Floating Interest Rate

The fixed interest rate on loan means repayment of loans in fixed equal instalments over the entire period of the loan. In this case, the interest rate doesn't change with market fluctuations.

Floating interest rate by name implies that the rate of interest varies with market conditions. The drawback with floating interest rates is the uneven nature of monthly instalments.

7. Abu Dhabi Global Market (ADGM) 

Context:India, Emirates discuss areas of future cooperation(gs-2,3)

India and the United Arab Emirates discussed areas for future cooperation, including growth opportunities for Indian banks, and the potential for private banks operating at the Abu Dhabi Global Market (ADGM) to offer private wealth services in India, according to a joint statement issued by the Ministry of Commerce and the Abu Dhabi Investment Authority.

“Areas for future cooperation were also discussed at the meeting, including growth opportunities for Indian banks, asset managers and technology companies at ADGM, and the potential for private banks operating at ADGM to offer high quality private wealth services in India,” the statement said. “In this regard, the UAE side further emphasised the strategic role that ADGM has played in fostering collaborations to enable sustainable trade flows and investments between the two economies.”

INDIA-UAE RELATIONS:

• India and the UAE enjoy strong bonds of friendship based on civilizational links, age-old maritime trade and vibrant people-to-people contacts. Close geographical proximity, historical links, cultural affinity, natural synergies, shared aspirations and common challenges provide further impetus to this robust engagement. In this post let us see the important dimensions of India-UAE relations.
• India-UAE Bilateral Relations: The ‘ups’ and ‘downs’
• The relation, though occasionally marred by UAE support for Pakistan (on the Kashmir issue), has greatly flourished especially after the accession of H. H. Sheikh Zayed Bin Sultan Al Nahyan, as the ruler of Abu Dhabi in 1966, and subsequently with the creation of UAE federation in 1971.
• It was after 24 years (Indira Gandhi in May 1981), that an Indian PM visited the country (President had visited in November 2010) last year in August 2015. This itself shows the renewed interest Indian foreign establishment is showing in the region; as part of the Link West Policy.
• The bilateral relation was recently in news for the visit of Abu Dhabi crown prince Sheikh Mohammed Bin Zayed Al Nahyan. The relation has been elevated to the level of Comprehensive Strategic Partnership Agreement, outlining a roadmap for deepening co-operation.
• India-UAE Relations

Areas of co-operation between India and UAELet’s look at the areas of co-operation between the 2 countries:

Commercial Relations:

The age-old maritime trade has evolved into a full-fledged economic and commercial partnership in recent times. Though the trade was valued at $180 million per annum in the 1970s, today around $60 billion worth of goods and services move across the borders, making UAE, India’s third largest trading partner for the year 2014-15 after China and US. Moreover, UAE was the second largest export destination of India with an amount of over US$ 33 billion for the year 2014-15. For UAE, India was the largest trading partner for the year 2013 with an amount of over US$ 36 billion (non-oil trade).

India’s major exporting items are: Petroleum products; precious metals, stones, gems and jewellery; minerals; food items (cereals, sugar, fruits & vegetables, tea, meat, and seafood); textiles (garments, apparel, synthetic fibre, cotton, yarn); engineering & machinery products and chemicals.

India’s major importing items are: Petroleum and petroleum products; precious metals, stones, gems & jewellery; minerals; chemicals; wood & wood products.

Energy Security:

With respect to oil trade, UAE was the sixth largest source of crude oil for India in 2015. There is an intention for the Abu Dhabi National Oil Company (ADNOC) and the Indian Strategic Petroleum Reserves Ltd. (ISPRL) to sign a Memorandum of Understanding on the Establishment of a Strategic Petroleum Reserve in India, and has agreed to conclude negotiations in the near future.

Source of investment:

With respect to bilateral investments, total FDI from UAE to India is estimated to be US$3.01billion (Jan. 2015) and ranked as tenth biggest investor in India. Abu Dhabi Investment Authority (ADIA) announced its plans of investing US$ 2 billion in Indian Infrastructure sector. During PM Modi’s visit last year, the 2 sides agreed to establish an UAE-India Infrastructure Fund, setting an ambitious target of $75 billion to support investment in India’s infrastructure. UAE has also appreciated Indian govt. initiatives like Smart City, Skill India etc. and they are expected to invest in those areas, in addition to fields like oil, renewable energy etc.

Indian Community:

UAE is home to an Indian expatriate community, 2.6 million strong in numbers, the largest expatriate community in the UAE. Professionally qualified personnel constitute about 15 & 20 percent of the community, followed by 20 percent white-collar non-professionals (clerical staff, shop assistants, sales men, accountants, etc.) and the remainder 65% comprises blue-collar workers. There is also a significant business community from India. The annual remittances made by the large Indian community in UAE amount to over US$15 billion (2013).

Security co-operation:

A significant aspect of bilateral ties today is the closer convergence on security and counter-terrorism. Notwithstanding a security agreement in place since 2011, progress on counter-terror and maritime security had been slow. Recently, in the joint statement two sides alluded to Pakistan in their joint statement after the prime minister’s visit when calling upon “all states to reject and abandon the use of terrorism against other countries, dismantle terrorism infrastructures and bring perpetrators of terrorism to justice”. Further with the rise of Islamic State, the need for co-operation in security areas and intelligence sharing has achieved higher moral ground. Last year, in September, UAE deported to India a women suspecting of having links to IS. Around 20 Indians have been intercepted while crossing over to conflict zone. The joint production of defence equipment under the Make in India programme is another important area of focus.

Cultural Relations:

The two nations share historical ties and have maintained regular cultural exchanges both at official and popular levels. India and UAE signed a Cultural Agreement in 1975. The ICCR had opened a Culture Centre in Abu Dhabi in 2009.

Agreement in international fora:

There is increased convergence of ideas based on needs and priorities in different issues of global commons. Collaboration between the two countries happen over issues discussed in United Nations Framework Convention on Climate Change, setting up of International Solar Alliance, support to International Renewable Energy Agency, IRENA.

Miscellaneous areas:

UAE and India agreed to further strengthen their cooperation in several key areas, including trade and investment, security, counter-terrorism, joint defence production, space cooperation, IT and electronics. Active engagement between the UAE Space Agency and the Indian Space Research Organization (ISRO) is in effect, which has led to the signing of a Memorandum of Understanding and the establishment of a Joint Working Group for space cooperation

PM Modi and the Crown Prince of Abudhabi

India-UAE Relations: Areas of Improvement:

Grievance Redressal for the migrant Indian workers in UAE:

There is a renewed vigour to set up such a mechanism on a bilateral level. Ministry of External Affairs is working to evolve a new arrangement that would make the recruitment process more transparent. India and UAE signed a MoU in the field of Manpower Sourcing in December 2006 and a Protocol to streamline the admission of Indian contract workers by way of an electronic contract registration and validation system was signed. The Embassy also has Indian Community Welfare Fund (ICWF) for providing short term economic assistance (food, shelter, passage expenses etc.) to destitute workers/housemaids in distress.

India can offer her expertise in sustaining a diverse nation, without much friction, to the West Asian countries, especially since the region is great turmoil, largely rooted on Sunni-Shia strife.

Since UAE’s oil trade largely flows through the Indian Ocean, our Navy can play more proactive role in guarding the waters. The recently released Maritime Doctrine of Indian Navy rightly gives due importance to the Persian Gulf region.

Summary

UAE lights at the heart of Gulf, a sub-continent hosting no less than 7 million citizens, sending in remittances of $40 billion annually. They also play a crucial role in our energy security. With dipping oil prices, the laws of economy says the buyers have a better say in oil trade. Hence, India is in a position to proactively engage, if not dictate, with the federation, to further our interests in the region.

8.BIOFUEL

CONTEXT:Biofuel planes may fly 10 crore passengers by 2030

India has committed to fly 10 crore passengers on biofuel-propelled planes by 2030, SpiceJet’s chairman and managing director, Ajay Singh said at UN’s SDG Climate Summit in New York.

What are Biofuels?

• Any hydrocarbon fuel that is produced from an organic matter (living or once living material) in a short period of time (days, weeks, or even months) is considered a biofuel.
• Biofuels may be solid, liquid or gaseous in nature.
• Solid: Wood, dried plant material, and manure
• Liquid: Bioethanol and Biodiesel
• Gaseous: Biogas
• These can be used to replace or can be used in addition to diesel, petrol or other fossil fuels for transport, stationary, portable and other applications. Also, they can be used to generate heat and electricity.
• Some of the main reasons for shifting to biofuels are the rising prices of oil, emission of the greenhouse gases from fossil fuels and the interest for obtaining fuel from agricultural crops for the benefit of farmers.
• Categories of Biofuels

First generation biofuels:

• These are made from food sources such as sugar, starch, vegetable oil, or animal fats using conventional technology.
• Common first-generation biofuels include Bioalcohols, Biodiesel, Vegetable oil, Bioethers, Biogas.
• Though the process of conversion is easy, but use of food sources in the production of biofuels creates an imbalance in food economy, leading to increased food prices and hunger.
• Second generation biofuels:
• These are produced from non-food crops or portions of food crops that are not edible and considered as wastes, e.g. stems, husks, wood chips, and fruit skins and peeling.
• Thermochemical reactions or biochemical conversion process is used for producing such fuels.
• Examples include cellulose ethanol, biodiesel.
• Though these fuels do not affect food economy, their production is quite complicated.
• Also, it is reported that these biofuels emit less greenhouse gases when compared to first generation biofuels.
• Third generation biofuels:
• These are produced from micro-organisms like algae.
• Example- Butanol
• Micro-organisms like algae can be grown using land and water unsuitable for food production, therefore reducing the strain on already depleted water sources.
• One disadvantage is that fertilizers used in the production of such crops lead to environment pollution.
• Fourth Generation Biofuels:
• In the production of these fuels, crops that are genetically engineered to take in high amounts of carbon are grown and harvested as biomass.
• The crops are then converted into fuel using second generation techniques.
• The fuel is pre-combusted and the carbon is captured. Then the carbon is geo-sequestered, meaning that the carbon is stored in depleted oil or gas fields or in unmineable coal seams.
• Some of these fuels are considered as carbon negative as their production pulls out carbon from environment.

9. Mamallapuram; Modi­Xi summit(GS-1,2)

CONTEXT:Surfers, swimmers barred from

beaches around Mamallapuram

Modi­Xi summit:

second edition of the informal summit between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping to be held from October 11 to 13. 

Mamallapuram:

• Mamallapuram, Tamil Nadu is expected to be the venue for the second India-China informal summit.
• Besides holding talks, the leaders of both countries are likely to make a visit to the ancient monuments in the area.
• The monuments in the area have been classified as a UNESCO World Heritage Site.
• During the first informal summit in Wuhan (in China) in April 2018, the leaders had made a visit to the Hubei provincial museum.
• Recently, Mamallapuram had also hosted the Defence Expo 2018, an annual event of the Union Defence Ministry.
• About Mamallapuram
• Mamallapuram, also called Mahabalipuram or Seven Pagodas, is a town that lies along the Coromandel Coast of the Bay of Bengal, 60 km south of Chennai.
• The town’s religious centre was founded by a 7th-century Hindu Pallava King—Narasimhavarman, also known as Mamalla—for whom the town was named.
• It contains many surviving 7th- and 8th-century Pallava temples and monuments, chief of which are the sculptured rock relief popularly known as “Arjuna’s Penance,” or “Descent of the Ganges,” a series of sculptured cave temples, and a Shiva temple on the seashore.
• The town’s Five Rathas, or monolithic temples, are the remnants of seven temples, for which the town was known as Seven Pagodas. The entire assemblage collectively was designated a UNESCO World Heritage Site in 1984.