Daily Prelims Notes 27 August 2021

Daily Prelims Notes

27 August 2021

Table Of Contents

1. Hawaii’s Kilauea Volcano
2. Blue Dot Network
3. Covid-19 become endemic in India
4. E-Waste management in India
5. Organic Farming
6. Hydel Projects in Uttarakhand
7. PM – CARES 
8. Unique Identification Authority of India
9. Hemavati River
10. Bandipur Tiger Reserve
11. National Institute of Disaster Management
12. First-Past-the-Post System
13. Action Plan for Vulture Conservation for 2020-2025
14. Drone Rules 2021
15. Greater Male Connectivity Project (GMCP)
16. Universal Postal Union
17. RBI’s Resolution Framework 2.0
18. Emergency Credit Linked Guarantee Scheme (ECLGS)
19. Corporate Social Responsibility (CSR)
20. Conviction of MPs and MLAs

1. Hawaii’s Kilauea Volcano

Subject – IR and Geography

Context – The ground at the summit of Kilauea volcano in Hawaii has been rumbling and swelling in recent days, prompting scientists to warn that the mountain could once again disgorge lava.

Concept –

• The volcano, which is among the world’s most active, has behaved similarly in the past without any magma breaking the surface.
• It’s not uncommon for Kilauea to have earthquakes, which could indicate rocks are moving. It’s also not unusual for the ground to swell as the heat from the sun and saturation from rain can cause the ground to expand and contract.
• However, earthquakes and ground swelling at the same time may indicate magma is on the move.
• It’s occurring at the summit of Kilauea volcano, an uninhabited area within Hawaii Volcanoes National Park on the Big Island. This is about 200 miles southeast of Honolulu, which is on a different island called Oahu.
• The last time Kilauea erupted at the southern part of its caldera or crater was in 1974.
• In Hawaiian tradition, Kilauea is home to the volcano goddess Pele.

Volcanoes –

• A volcano is an opening in the earth’s crust through which gases, molten rocks materials (lava), ash, steam etc. are emitted outward in the course of an eruption.
• Volcanic activity is an example of endogenic process.
• Magma is the term used to denote the molten rocks and related materials seen inside earth. A weaker zone of the mantle called asthenosphere, usually is the source of magma.
• Once this magma came out to the earth surface through the vent of a volcano, it is called as the Lava. Therefore, Lava is nothing but the magma on earth surface.
• The process by which solid, liquid and gaseous material escape from the earth’s interior to the surface of the earth is called as Volcanism.

Types of Volcanoes –

2. Blue Dot Network

Subject – IR

Concept –

• The BDN was formally announced on 4^thNovember, 2019 at the Indo-Pacific Business Forum in Bangkok, Thailand. It will be led by the US along with Japan and Australia.
• It is a multi-stakeholder initiative to bring together governments, the private sector and civil society to promote high-quality, trusted standards for global infrastructure development.
• It is expected to serve as a globally recognized evaluation and certification system for roads, ports and bridges with a focus on the Indo-Pacific region.
• It seems to be planned as a direct counter to China’s Belt and Road Initiative (BRI). However, unlike the BRI, the BDN would not offer public funds or loans for the project. BDN will serve as a globally recognized seal of approval for major infrastructure projects, letting people know that projects are sustainable and not exploitative.
• The new Blue Dot Network, therefore, is best seen as part of the U.S.A.’s strategy of trying to persuade developing countries in Asia-Pacific not rely on Chinese funds for infrastructure.

3. Covid-19 become endemic in India

Subject – Science and Tech

Context – World Health Organization Chief Scientist Dr Soumya Swaminathan has said Covid-19 may be entering a stage where it will become endemic.

Concept –

• According to the US Centers of Disease Control and Prevention (CDC), endemic refers to the “constant presence and/or usual prevalence of a disease or infectious agent in a population within a geographic area”.
• According to an article published in the journal Science in 2020, when epidemics become endemic, they become “increasingly tolerated” and the responsibility of protecting against it shifts from the government to the individual.
• An epidemic, on the other hand, refers to a scenario when the number of cases of the disease increases, often suddenly, which means the cases are more than the expected levels.
• Notably, the number of cases of a disease that are considered “constant” would be different for different areas and would also depend on the particular geographical area’s population.
• Out of the seven coronaviruses known to infect humans, the ones that have emerged since the last two decades including SARS (fatality rate of 10 per cent), MERS (fatality rate between 35-36 per cent) and now SARS-CoV-2 are the ones that are a cause for worry since they are capable of causing severe illnesses and even deaths.
• Out of these three, while humans are still dealing with SARS-CoV-2 and are likely to continue doing so in the coming few years, SARS (emerged in China) and MERS (emerged in Saudi Arabia) were locally contained. The last case of SARS was detected in 2003, however, MERS is still circulating.

4. E-Waste management in India

Subject – Environment

Context – India is the third-largest producer of e-waste after China and the United States. More than 95% of this waste is handled by informal sector.

Concept –

• The International Telecommunication Union defines e-waste as all items of electrical and electronic equipment (EEE) and its parts that have been discarded by its owner as waste without the intent of re-use.
• This waste is classified into six categories: Cooling and freezing equipment like refrigerators, freezer other equipment such as televisions, monitors, laptops, notebooks and tablets.
• It also comprises fluorescent lamps and other large and small equipment like washing machines, clothes dryers, dish-washing machines, vacuum cleaners and microwaves.
• The e-waste stream contains diverse materials — most prominently hazardous substances such as lead, polychlorinated biphenyls (PCBs), polybrominated biphenyls (PBBs), mercury, polybrominated biphenyl ethers (PBDEs), brominated flame retardants (BFRs), and valuable substances such as iron, steel, copper, aluminum and plastics.
• Decomposing e-waste is an expensive process and only a few developed countries can afford to do so.
• Laws to manage e-waste have been in place in India since 2011, mandating that only authorized dismantlers and recyclers collect e-waste. E-waste (Management) Rules, 2016 was enacted in 2017.
• India’s first e-waste clinic for segregating, processing and disposal of waste from household and commercial units has been be set-up in Bhopal, Madhya Pradesh.

E-Waste Management Rules, 2016

• The Ministry of Environment, Forest and Climate Change notified the E-Waste Management Rules, 2016 in supersession of the E-waste (Management & Handling) Rules, 2011.
• Over 21 products (Schedule-I) were included under the purview of the rule. It included Compact Fluorescent Lamp (CFL) and other mercury containing lamps, as well as other such equipment.
• For the first time, the rules brought the producers under Extended Producer Responsibility (EPR), along with targets. Producers have been made responsible for the collection of E-waste and for its exchange.
• Various producers can have a separate Producer Responsibility Organization (PRO) and ensure collection of E-waste, as well as its disposal in an environmentally sound manner.
• Deposit Refund Scheme has been introduced as an additional economic instrument wherein the producer charges an additional amount as a deposit at the time of sale of the electrical and electronic equipment and returns it to the consumer along with interest when the end-of-life electrical and electronic equipment is returned.
• The role of State Governments has been also introduced to ensure safety, health and skill development of the workers involved in dismantling and recycling operations.
• A provision of penalty for violation of rules has also been introduced.
• Urban Local Bodies (Municipal Committee/Council/Corporation) have been assigned the duty to collect and channelize the orphan products to authorized dismantlers or recyclers.
• Allocation of proper space to existing and upcoming industrial units for e-waste dismantling and recycling.

5. Organic Farming

Subject – Agriculture

Concept –

• Organic farming is a type of agriculture or farming which avoids the use of synthetic fertilizers, pesticides, growth regulators, & livestock feed additives.

Organic farming in India

• India ranks 1st in number of organic farmers and 9th in terms of area under organic farming.
• Sikkim became the first State in the world to become fully organic in 2016.
• North East India has traditionally been organic and the consumption of chemicals is far less than the rest of the country.
• The top three states — Madhya Pradesh, Rajasthan, & Maharashtra — account for about half the area under organic cultivation.

Government Initiatives to Promote Organic Farming

• Mission Organic Value Chain Development for North East Region (MOVCD)
  • Mission Organic Value Chain Development for North East Region (MOVCD-NER) is a Central Sector Scheme, a sub-mission under National Mission for Sustainable Agriculture (NMSA)
  • The scheme aims to develop certified organic production in a value chain mode to link growers with consumers and to support the development of the entire value chain.
• Paramparagat Krishi Vikas Yojana (PKVY)
  • Paramparagat Krishi Vikas Yojana, launched in 2015 is an elaborated component of Soil Health Management (SHM)of major project National Mission of Sustainable Agriculture (NMSA).
  • Under PKVY, Organic farming is promoted through adoption of organic villages by cluster approach and Participatory Guarantee System (PGS) certification.
• Certification Schemes
• Food Safety and Standards Authority of India (FSSAI)is the food regulator in the country and is also responsible for regulating organic food in the domestic market and imports.
• Participatory Guarantee System (PGS):PGS is a process of certifying organic products, which ensures that their production takes place in accordance with laid-down quality standards. PGS Green is given to chemical free produce under transition to ‘organic’ which takes 3 years. It is mainly for domestic purpose.
• National Program for Organic Production (NPOP):NPOP grants organic farming certification through a process of third party certification for export purposes.
• Soil Health Card Scheme has led to a decline of 8-10% in the use of chemical fertilizers and also raised productivity by 5-6%.

Organic Farming in other countries

• The largest adoption of conservation agriculture is seen in North and South America, followed by Australia and New Zealand, Asia, Russia, Ukraine, Europe and Africa, the researchers noted.
• Organic farming is in a nascent stage in India (2 per cent of the net sown area) and states need to step up their act to increase organic farming coverage.

6. Hydel Projects in Uttarakhand

Subject – Geography

Context – Despite Supreme Court freeze, 7 Uttarakhand projects get ok, 1 flash-flood hit.

Concept –

• Eight years after the Supreme Court imposed a moratorium on clearing hydro-electric projects in Uttarakhand following a flash flood that killed over 5,000 people in June 2013, the Union ministries of Environment, Power and Jal Shakti have reached a consensus on allowing construction of seven hydel projects on the Ganga and its tributaries in the state.
• On the list are –
  • NTPC’s 4×130 MW Tapovan Vishnugad project which was ravaged by a flash flood in the Dhauli Ganga river in Chamoli district in February this year.
  • 1000 MW Tehri Stage II,
  • 444 MW Vishnugad Pipalkote,
  • 99 MW Singoli Bhatwari,
  • 76 MW Phata Buyong,
  • 15 MW Madmaheshwar and
  • 5 MW Kaliganga-II.
    

7. PM – CARES

Subject – Governance

Context – The Supreme Court on Thursday asked the Union government if it can immediately release money from the PM-Cares Fund for the education of children who have been orphaned or have lost legal guardians or either of their parents during the COVID¬19 pandemic.

Concept –

• The government has set up the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM-CARES Fund) to deal with any kind of emergency or distress situation like posed by the COVID-19 pandemic.
• The Fund is a public charitable trust with the Prime Minister as its Chairman. Other Members include Defence Minister, Home Minister and Finance Minister.
• The Fund enables micro-donations as a result of which a large number of people will be able to contribute with the smallest of denominations.
• The Fund will strengthen disaster management capacities and encourage research on protecting citizens.
• The Ministry of Corporate Affairs has clarified that contributions by companies towards the PM-CARES Fund will count towards mandatory Corporate Social Responsibility (CSR) expenditure.
• It can avail donations from the foreign contribution and donations to fund can also avail 100% tax exemption.

Similarities between PMNRF and PM-CARES Fund

• Spending from both the PM CARES Fund and PMNRF does not require approval from Parliament.
• Donations to both PMNRF and PM CARES Fund will be exempted from Income Tax under Section 80G.
• Funds from both PM Cares and PMNRF cannot be utilized without the directions of the Prime Minister.
• M/S SARC Associates Chartered Accountants, New Delhi are the auditors of both PMNRF and PM CARES fund.
• Donations by companies to both PMNRF and PM CARES Fund are classified as Corporate Social Responsibility (CSR) under Companies Act 2013.
• Both PMNRF and PM CARES do not receive budgetary support.
• Both PMNRF and PM CARES are set up as trusts.
• Both PM CARES and PMNRF can receive foreign contributions. They are exempted from the Foreign Contribution Regulation Act (FCRA).
• Both PM CARES and PMNRF are not audited by Comptroller and Auditor General (CAG).
• Both PM CARES and PMNRF does not come under the Right to Information (RTI).

8. Unique Identification Authority of India

Subject – Governance

Context – Inaccessible UIDAI system leaves Aadhaar users in lurch.

Concept –

• The Unique Identification Authority of India (UIDAI) is a statutory authority established on 12 July 2016 by the Government of India under the jurisdiction of the Ministry of Electronics and Information Technology, following the provisions of the Aadhaar Act 2016.
• The UIDAI is mandated to assign a 12-digit unique identification (UID) number (Aadhaar) to all the residents of India.
• The UIDAI was initially set up by the Government of India in January 2009, as an attached office under the aegis of the Planning Commission.
• It is mandated to collect demographic and biometric information of the country’s residents, store the data in a central database, and issue to each resident of the country a 12-digit unique identity number called Aadhaar.
• UIDAI is accountable for the authentication and enrolment of Aadhaar, and also to safeguard the data protection of identity information of individuals.

9. Hemavati River

Subject – Geography

Context – Decades after dam on Hemavati, scam emerges.

Concept –

• The Hemavati River starts in the Western Ghats at an elevation of about 1,219 metres near Balur in Mudigere taluk of Chikmagalur District of the state of Karnataka, in southern India.
• It flows through Hassan District where it is joined by its chief tributary, the Yagachi River, and then into Mandya district before joining the Kaveri near Krishnarajasagara.
• It is an important tributary of the Kaveri River.
• A dam across the Hemavati was completed in 1979, above Gorur in Hassan district, and downstream from the Yagachi confluence.

The Cauvery River

• The Cauvery River (Kaveri) is designated as the ‘Dakshina Ganga’ or ‘the Ganga of the South’.
• The Cauvery River rises at an elevation of 1,341 m at Talakaveri on the Brahmagiri range near Cherangala village of Kodagu (Coorg) district of Karnataka.
• The total length of the river from origin to an outfall is 800 km.
• It flows in a southeasterly direction for 705 km through the states of Karnataka and Tamil Nadu and descends the Eastern Ghats in a series of great falls.
• Left Bank: the Harangi, the Hemavati, the Shimsha, and the Arkavati.
• Right Bank: Lakshmantirtha, the Kabbani, the Suvarnavati, the Bhavani, the Noyil, and the Amaravati joins from the right.
• At Hogennekkal Falls, it takes a Southerly direction and enters the Mettur Reservoir.
• A tributary called Bhavani joins Cauvery on the Right bank about 45 Kms below Mettur Reservoir. Thereafter it enters the plains of Tamil Nadu.
• Two more tributaries Noyil and Amaravathi join on the right bankand here the river widens with a sandy bed and flows as ‘Akhanda Cauvery
• Many projects were completed in this basin which
  • Included Krishnarajasagar in Karnataka, Mettur dam and Cauvery delta system in Tamil Nadu. LowerBhavani, Hemavati, Harangi, Kabini are important projects completed duing the plan period.

10. Bandipur Tiger Reserve

Subject – Environment

Context – Forest Minister of Karnataka UmeshKatti has said that the existing road passing through Bandipur is in good condition and there is no need for its widening.

Concept –

• It was established in 1973 under Project Tiger. In 1985, by including adjacent areas from Venugopala Wildlife Park, it was enlarged and named as Bandipur National Park.
• It is situated in two contiguous districts (Mysore and Chamarajanagar) of Karnataka and is located at the tri-junction area of the States Karnataka, Tamil Nadu and Kerala.
• It forms a part of Nilgiri Biosphere Reserve.
• It lies in one of the richest biodiversity areas of the country. It is surrounded by
  • Mudumalai Tiger Reserve (Tamil Nadu) in the South,
  • Wayanad Wildlife Sanctuary (Kerala) in the South-west &
  • The Kabini Reservoir separates the Bandipur and Nagarahole Tiger Reserve on the North-west.
• It is endowed with rich floral and faunal diversity and is recognized as one of the Mega Biodiversity Areas in the country.
• The Bandipur along with Nagarahole, Mudumalai, Sathyamangalam & Wayanad constitutes the single largest Wild population of Tigers in the world.
• This Landscape is also home to the single largest Asian Elephant population in the world and is part of the Mysore Elephant Reserve (MER).
• The park is located between the Kabini river in the north and the Moyar river in the south. The Nugu river runs through the park. The highest point in the park is on a hill called Himavad Gopalaswamy Betta.

11. National Institute of Disaster Management

Subject – Disaster Management

Concept –

• The National Institute of Disaster Management (NIDM) is one of the pioneer institutes under the Union Ministry of Home Affairs.
• It has been mandated to promote capacity building interventions in Disaster Risk Management (DRM).
• The Institute owes its origin in 1995 when a National Centre for Disaster Management (NCDM) was set up within Indian Institute of Public Administration (IIPA) by the Ministry of Agriculture & Cooperatives.
• Following the transfer the subject of disaster management from the Ministry of Agriculture to the Ministry of Home Affairs, the NCDM was delinked from the IIPA and rechristened as the ‘National Institute of Disaster Management (NIDM)’ under the Ministry of Home Affairs.
• The NIDM acquired a statutory status after the promulgation of Disaster Management Act in 2005.
• The prime mandates of the NIDM under the Act are: training, capacity building, research, documentation and policy advocacy on disaster management.

12. First-Past-the-Post System

Subject – Polity

Concept –

• The first-past-the-post (FPTP) system is also known as the simple majority system. In this voting method, the candidate with the highest number of votes in a constituency is declared the winner.
• This system is used in India in direct elections to the Lok Sabha and State Legislative Assemblies.
• While FPTP is relatively simple, it does not always allow for a truly representative mandate, as the candidate could win despite securing less than half the votes in a contest.

Proportional Representation (PR)

• Proportional representation (PR) is a concept in which the number of seats won by a party or group of candidates is proportionate to the number of votes received.
• India is not new to PR system; in our country, the following elections are held on the basis of proportional representation:
  • President
  • Vice President
  • Members of Rajya Sabha
  • Members of state legislative council

13. Action Plan for Vulture Conservation for 2020-2025

Subject – Environment

Concept –

• The action plan was approved by the National Board for Wildlife (NBWL) October 5, 2020. An earlier one was formulated in 2006 for three years.
• The new plan has laid out strategies and actions to stem the decline in vulture population, especially of the three Gyps species:
  • Oriental white-backed vulture (Gyps bengalensis)
  • Slender-billed vulture (Gyps tenuirostris)
  • Long-billed vulture (Gyps indicus)
• These three vulture species were listed by IUCN, in 2000 as ‘Critically  Endangered’,  which is the highest category of endangerment.
• This would be done through both ex-situ and in-situ conservation.
• The plan has also suggested that new veterinary non-steroidal anti-inflammatory drugs (NSAIDS) be tested on vultures before their commercial release. NSAIDS often poisons cattle whose carcasses the birds pray on.
• The new plan automatically removes veterinary use of a drug if it is found to be toxic to vultures. This is to be done with the help of Drugs Controller General of India.
• Under the plan, every state will host at least one vulture safe zone to conserve the remnant population of vultures in the state. These centres will facilitate conservation and breeding of vultures.
• A coordinated Nation-wide vulture counting is to be conducted by the Bombay Natural History Society, Forest Department, non-profit organisations, Research Institute, etc. These countings are to be conducted at regular intervals.

Vulture Multi-Species Action Plan

• It was adopted at the Conservation of Migratory Species (CMS) held in 2017.
• The first strategy of the plan was launched at the CMS COP 13 held in Gandhinagar, Gujarat, India.
• The major objectives of the plan are as follows
  • To reduce mortality caused due to unintentional toxic substances
  • To reduce mortality due to NSAID.
  • To halt the trade of vulture parts
  • To stop poisoning by poacher.
• A National vulture Task Force is to be created in every member country. This task force shall help the respective governments to address the threats to vultures in their respective countries.
• The report of success of the project is to be created in 2029.

Diclofenac

• A veterinary nonsteroidal anti-inflammatory drug (NSAID) in 2004, which is used to treat pain and inflammatory diseases such as gout in carcasses that vultures would feed off.
• Just 0.4-0.7% of animal carcasses contaminated with diclofenac was sufficient to decimate 99% of vulture populations.

14. Drone Rules 2021

Subject – Defence and Security

Context – The Civil Aviation Ministry has notified the Drone Rules, 2021, under which the weight of a fully loaded unmanned aircraft system has been increased from 300 kg to 500 kg to include heavy payload-carrying craft for use in the logistics and transportation sectors. The rules will also cover drone taxis.

Concept –

• The Ministry of Civil Aviation has unveiled the Draft Drone Rules, 2021 based on “trust, self-certification and non-intrusive monitoring”.
• The new rules would replace the existing Unmanned Aircraft System (UAS) Rules, notified in March, 2021.
• Abolish the need for various approvals, including certificate of conformance, certificate of maintenance, import clearance, acceptance of existing drones, operator permit, authorization of R&D organization and student remote pilot licence.
• Number of forms reduced from 25 to 5.
• Fee reduced to nominal levels. No linkage with the size of the drone.
• Digital Sky Platform: The government will be developing a digital sky platform that will have an interactive airspace map dividing the country into green, yellow, and red zones.
  • The online registration of all drones will happen through the Digital Sky Platform.
• It will provide a secure and a scalable platform that supports drone technology frameworks, such as NPNT (no permission, no take-off), designed to enable flight permission digitally and manage unmanned aircraft operations and traffic efficiently.
• Reduced Airport Perimeter: The draft rules reduced the airport perimeter from 45 km to 12 km.
• The rules state that no flight permissions would be required to fly upto 400 feet in green zones and upto 200 feet in the area between 8 and 12 km from the airport perimeter.
• No pilot licence would be needed for micro drones for non-commercial use, nano drones and for R&D organizations’.
• There would be no restriction on drone operations by foreign-owned companies registered in India.
• Drone Corridor: The Ministry will also facilitate development of drone corridors for cargo deliveries and a drone promotion council will be set up to facilitate a business-friendly regulatory regime.
• Safety Features: The draft rule also provides for safety features such as real-time tracking beacon, and geo-fencing, which are expected to be notified in future and a six-month lead time will be provided for compliance.
• Increased Coverage of Drones: The coverage has been increased from 300 kg to 500 kg and will cover drone taxis, while the Issuance of Certificate of Airworthiness has been delegated to Quality Council of India and certification entities authorized by it.
• Import of drones to be regulated by DGFT.
• The Director General or an entity authorized by it, on the recommendation of the Quality Council of India or an authorized testing entity, will issue a type certificate for drones. No type certificate, unique identification number, prior permission and remote pilot licence will be needed for research and development entities.
• Importing and manufacturing drones purely for exports are now exempt from type certification and unique identification number. Manufacturers and importers will be able to generate their drones’ unique identification number on the Digital Sky Platform through the self-certification route.

15. Greater Male Connectivity Project (GMCP)

Subject – IR

Context – Indian firm to build a bridge in the Maldives

Concept –

• This infrastructure project, the largest-ever by India in the Maldives, involves the construction of a 6.74-km-long bridge and causeway link.
• It will connect the Maldives capital Malé with the neighbouring islands of Villingli, Gulhifalhu and Thilafushi.
• The seeds of the project were planted during the External Affairs Minister’s visit to Malé in September 2019.
• The GMCP is not only the biggest project India is doing in the Maldives but also the biggest infrastructure project in the Maldives overall.

• The project is funded by a grant of $100 million and a line of credit of $400 million from India.
• The GMCP project would be bigger than the Sinamale Bridge built with Chinese assistance that connects Male with Hulhumale and Hulhule and was completed in 2018.

16. Universal Postal Union

Subject – IR

Context – UN bans British stamps in Chagos Island.

Concept –

• A specialized agency of United Nations that coordinates postal policies among member nations, in addition to worldwide postal system.
• Established in 1874 and is second oldest international organization worldwide after International Telecommunication Union (ITU) which was established in 1865.
• Headquartered in Berne, Switzerland.
• Has 192 member countries.
• It is primary forum for cooperation between postal sector players among member countries.
• UPU has four units: the Congress, the Council of Administration, the International Bureau, and the Postal Operations Council.
• Regulates40 lakh postal outlets worldwide.
• India joined the UPU on July 1,
• It frames rules for international mail exchange and fixes rates for International postal services.
• It helps to ensure a truly universal network of up-to-date products and services.
• UPU provides recommendations for growth in mail, parcel and financial services and to improves the customer’s quality of service.

17. RBI’s Resolution Framework 2.0

Subject – Economy

Context – Few takers seen for debt recast 2.0 as demand recovers: Crisil

Concept –

• This Framework is to relieve stress faced by most vulnerable categories of borrowers – namely individuals, borrowers and MSMEs.
• Individuals, borrowers and MSMEs who have not availed any restructuring will be eligible to be considered under Resolution Framework 2.0.
• For individuals and small businesses who have availed restructuring of loans under Resolution Framework 1.0, lending institutions can now extend residual tenure up to a total period of 2 years.
• Lending institutions are now permitted to review working capital sanction limits, as a one-time measure.

18. Emergency Credit Linked Guarantee Scheme (ECLGS)

Subject – Economy

Context – ‘Strong buffers will help, as banks tackle asset risks’. ECLGS helped with liquidity: Moody’s

Concept –

• The scheme was launched as part of the Aatmanirbhar Bharat Abhiyan package announced in May 2020 to mitigate the distress caused by coronavirus-induced lockdown, by providing credit to different sectors, especially Micro, Small and Medium Enterprises (MSMEs).
• Objective: To provide fully guaranteed and collateral free additional credit to MSMEs, business enterprises, MUDRA borrowers and individual loans for business purposes to the extent of 20% of their credit outstanding as on 29th February, 2020.
• 100% guarantee coverage is being provided by the National Credit Guarantee Trustee Company, whereas Banks and Non Banking Financial Companies (NBFCs) provide loans.
• Eligibility: Borrowers with credit outstanding up to Rs. 50 crore as on 29th February, 2020, and with an annual turnover of up to Rs. 250 crore are eligible under the Scheme.
• On 1st August, the government widened the scope of the Rs. 3 lakh crore-ECLGS scheme by doubling the upper ceiling of loans outstanding and including certain loans given to professionals like doctors, lawyers and chartered accountants for business purposes under its ambit.
• Tenor of loans provided under the Scheme is four years, including a moratorium of one year on principal repayment.
• Interest rates under the Scheme are capped at 9.25% for Banks and Financial Institutions (FIs), and 14% for NBFCs.

19. Corporate Social Responsibility (CSR)

Subject – Governance

Context – Businesses need not restrict their Corporate Social Responsibility (CSR) expenditure to local projects and must balance local area preferences specified in the law with ‘national priorities’, the Corporate Affairs Ministry said.

Concept –

• The term “Corporate Social Responsibility” in general can be referred to as a corporate initiative to assess and take responsibility for the company’s effects on the environment and impact on social welfare.
• In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013.
• India is the first country in the world to mandate CSR spending along with a framework to identify potential CSR activities.
• The CSR provisions within the Act is applicable to companies with an annual turnover of 1,000 crore and more, or a net worth of Rs. 500 crore and more, or a net profit of Rs. 5 crore and more.
• The Act requires companies to set up a CSR committee which shall recommend a Corporate Social Responsibility Policy to the Board of Directors and also monitor the same from time to time.
• The Act encourages companies to spend 2% of their average net profit in the previous three years on CSR activities.
• The indicative activities, which can be undertaken by a company under CSR, have been specified under Schedule VII of the Act.
• The first proviso to Section 135(5) of the Companies Act says a company shall give preference to local areas and areas around which it operates, in its mandatory CSR spending.

20. Conviction of MPs and MLAs

Subject – Polity

Context – The Supreme Court has decided to hear “at length” a plea that convicted parliamentarians and State legislators, former and sitting, should be disqualified and banned for life from contesting elections to Parliament or Assemblies.

Concept –

• The RPA, 1951 lays down certain rules for disqualification of MPs and MLAs.
• Section 8 (3)of the Act states that if an MP or MLA is convicted for any other crime and is sent to jail for 2 years or more, he/ she will be disqualified for 6 years from the time of release.
• Even if a person is on bail after the conviction and his appeal is pending for disposal, he is disqualified from contesting an election.
• Section 8(4) allowed convicted MPs, MLAs and MLCs to continue in their posts, provided they appealed against their conviction/sentence in higher courts within 3 months of the date of judgment by the trial court.
• The Supreme Court in Lily Thomas Case, 2013 struck down section 8(4) of the RPA, 1951 and declared it ultra vires and held that the disqualification takes place from the date of conviction.
• Recently, the CJI Bench further said more special Central Bureau of Investigation (CBI) courts needed to be set up in places where more than 100 cases were pending “to ensure easy accessibility to the witnesses and decongestion of existing special/CBI courts”.