Daily Prelims Notes 8 October 2020
Table Of Contents
- MASALA BONDS
- NATURAL GAS REFORMS
- ECONOMIC STIMULUS
- STAR CAMPAIGNER
- WORLD ECONOMIC FORUM
- NATIONAL INVESTIGATION AGENCY
- TRIBAL COUNCIL
- CRISPR-CAS9
1. MASALA BONDS
Subject: Economy
Context: Overseas borrowing through rupee-denominated bonds (masala bonds), which has been declining over the last few years, witnessed a sudden surge in interest from domestic borrowers.
Concept:
Masala bond – a form of external commercial borrowing (ECB) – was launched by the government and International Finance Corporation (IFC) in 2014-15 to contain the account deficit, reducing rupee volatility, attracting long-term funds for infrastructure projects and internationalising the rupee. The term ‘masala’ was ascribed to these bonds to give an Indian flavour, similar to ‘Dim Sum Bonds’ of China or Turkey’s ‘Baklava Bonds’
Masala Bonds
They are rupee-denominated bonds i.e. the funds would be raised from overseas market in Indian rupees.
According to RBI, any corporate, body corporate and Indian bank is eligible to issue Rupee denominated bonds overseas.
While companies can raise funds through these bonds, there are limitations for the use of such proceeds.
RBI mandates that the money raised through such bonds cannot be used for real estate activities other than for development of integrated township or affordable housing projects.
It also can’t be used for investing in capital markets, purchase of land and on-lending to other entities for such activities as stated above.
Minimum maturity of masala bonds
According to RBI, the minimum maturity period for Masala Bonds raised up to Rupee equivalent of USD 50 million in a financial year should be 3 years.
And for bonds raised above USD 50 million equivalents in INR per financial year should be 5 years.
The conversion for such bonds will happen at the market rate on the date of settlement of transactions undertaken for issue and servicing of the bonds, including its redemption.
Where can these bonds be issued and who can subscribe?
The bonds can only be issued in a country and subscribed by a resident of such country that is a member of FATF and whose securities market regulator is a member of International Organisation of Securities Commission.
While residents of such countries can subscribe to the bonds, it can also be subscribed by multilateral and regional financial institutions where India is a member country.
Subject: Economy
Context: Union Cabinet chaired by Prime Minister Narendra Modi approved the natural gas marketing reforms. The reforms aim to fix the gas prices in the market through transparent and competitive processes.
Concept:
E-Bidding Platform: The main objective of the reforms is to provide standard procedure for the sale of Natural Gas in the country. It also aims to provide a transparent and competitive method of discovering market prices through e-bidding.
Permit for the Affiliate Companies to participate in bidding: The reforms permit the associated Gas companies to participate in the building. This in turn will Kindle the competition in the gas market.
Producers will have choice to select a platform
The reforms will give massive push towards gas consumption
The open acreage licensing policy has increased investor driven acreage auction process. Currently, under the reforms, acreages are being allocated only in category 2 and category 3 basins.
Complete marketing and pricing freedom have been provided to domestic gas production companies. This was provided especially to those companies that discovered and developed field plans after February 2019.
Benefits:
The policy will help in bringing uniformity in the bidding process.
It will contribute towards each of doing business.
The reforms will provide a huge boost to the atmanirbhar Bharat Abhiyan as it will encourage domestic investments in the production of natural gas. On the other hand, it will reduce the gas imports.
Pradhan Mantri Urja Ganga
It is a national gas grid project that aims to provide pipe natural gas connection to every household in the Eastern part of the country. This is to be done by developing 15,000 kilometres of piped gas network.
Exploration and Production
the Hydrocarbon Exploration Licensing Policy (2016) was notified in 2016.This was introduced to award hydrocarbon acreages. The open acreage licensing policy that was launched in 2017 augmented HELP.
After these steps, the Government of India approved 129 marginal fields to explore hydrocarbons under discovered small fields policy.
Natural Gas in India
There are 26 sedimentary basins in India. Of these 12% are located in Shallow water, 49 percentage are located on land and 39% are located in the deep-sea water. The basins are divided into three categories as follows
Category 1: these are basins that have reserves and are already producing.
Category 2: these are basins with contingent resources and their commercial production are pending.
Category 3: these basins have prospective resources and are awaiting discovery.
Subject: Economy
Context: Principal Economic Adviser Sanjeev Sanyal on Wednesday said the government recognises the need for further stimulus at an appropriate time to perk up the demand during pandemic
Concept:
Economic stimulus refers to targeted fiscal and monetary policy intended to elicit and economic response from the private sector.
Economic stimulus is a conservative approach to expansionary fiscal and monetary policy that relies on encouraging private sector spending to make up for losses of aggregate demand.
Fiscal stimulus measures are deficit spending and lowering taxes; monetary stimulus measures are produced by central banks and may include lowering interest rates.
Subject: Polity
Context:
The Election Commission (EC) reduced the maximum number of star campaigners permitted for campaigning during Bihar elections amid concerns over large gatherings in view of the pandemic.
Concept:
Who are star campaigners?
They can be described as persons who are nominated by parties to campaign in a given set of Constituencies. These persons are, in almost all cases, prominent and popular faces within the Party. However there are no specific definitions according to law or the Election Commission of India.
Conditions for star campaigners
Star campaigners of a party will not exceed 40 where it is a recognized political party. For parties that are deemed unrecognized, the number of star campaigners will not be more than 20.
According to Section 77 (b) of The Representation of People’s Act, 1951 expenses incurred by the campaigner shall not be deemed to be expenditure in connection with the election. In other words, the expenses will be borne by the respective political party. [However if a star campaigner is present with the candidate on stage while campaigning, then half the expenditure of the event will go to the candidate’s account].
The manual to the Model Code of Conduct states that for the benefit of availing Section 77 (1) of The Representation of People’s Act, a permit for the mode of transport for every star campaigner will be issued centrally and against their name. It is also mandatory for this permit to be stuck on a prominent and visible place on the vehicle.
The Model Code of Conduct states that if the star campaigner is a prime minister or a former prime minister, then expenses incurred for bullet-proof vehicles required by centrally appointed security personnel will be borne by the government.
Subject: International Organisations
Context:
Tamil Nadu government’s nodal agency for investment promotion and single window facilitation, has partnered with the World Economic Forum (WEF) to establish India’s first advanced manufacturing hub (AMHUB)
Concept:
World Economic Forum:
The World Economic Forum is the International Organization for Public-Private Cooperation.
The Forum engages the foremost political, business, cultural and other leaders of society to shape global, regional and industry agendas.
It was established in 1971 as a not-for-profit foundation and is headquartered in Geneva, Switzerland.
It is independent, impartial and not tied to any special interests.
The Forum strives in all its efforts to demonstrate entrepreneurship in the global public interest while upholding the highest standards of governance. Moral and intellectual integrity is at the heart of everything it does.
The activities are shaped by a unique institutional culture founded on the stakeholder theory, which asserts that an organization is accountable to all parts of society. The institution carefully blends and balances the best of many kinds of organizations, from both the public and private sectors, international organizations and academic institutions.
It believes that progress happens by bringing together people from all walks of life who have the drive and the influence to make positive change.
The Forum strategy is simple and effective: bring together the most relevant leaders from all sectors of global society, and identify the best ways to address the world’s most significant challenges.
It works. For almost 50 years, the Forum has been the catalyst for global initiatives, historic shifts, industry breakthroughs, economic ideas and tens of thousands of projects and collaborations.
2020 theme: Stakeholders for a Cohesive and Sustainable World
Publications
Global risk report
Readiness for the future of production
Global gender gap report
Inclusive development index
Global competitiveness report (index)
Global human capital report (index)
Travel and tourism competitiveness report (index)
Global energy architecture performance index report
6. NATIONAL INVESTIGATION AGENCY
Subject: National Agencies
Context: NIA is planning to probe the involvement of some officials in UAE consulate in Trivandrum in diplomatic baggage gold smuggling case.
Concept:
The National Investigation Agency (NIA) was constituted under the National InvestigationAgency (NIA) Act, 2008.
It is a central agency to investigate and prosecute offences:
affecting the sovereignty, security and integrity of India, security of State, friendly relations with foreign States.
against atomic and nuclear facilities.
smuggling in High-Quality Counterfeit Indian Currency.
It implements international treaties, agreements, conventions and resolutions of the United Nations, its agencies and other international organisations.
It’s objective is also to combat terror in India.
It acts as the Central Counter-Terrorism Law Enforcement Agency.
Headquarters: New Delhi
Branches: Hyderabad, Guwahati, Kochi, Lucknow, Mumbai, Kolkata, Raipur and Jammu.
Goals of NIA
To execute in-depth professional investigation of scheduled offences using the latest scientific methods of investigation.
Upholding the constitution of India and laws of the land.
Prime importance to the protection of Human Rights and dignity of the individual.
Developing a professional workforce through regular training and exposure to the best practices and procedures.
Ensuring effective and speedy trial.
Maintaining professional and cordial relations with the governments of States and Union Territories and other law enforcement agencies in compliance with the legal provisions of the NIA Act.
Assist all States and other investigating agencies in the investigation of terrorist cases.
Build a database of all terrorist-related information and share the database available with the States and other agencies.
Study and analyse laws relating to terrorism in other countries and regularly evaluate the adequacy of existing laws in India and propose changes as and when necessary.
Scheduled Offences
The schedule to the Act specifies a list of offences which are to be investigated and prosecuted by the NIA.
These include offences under Acts such as the Atomic Energy Act, 1962, and the Unlawful Activities Prevention Act, 1967.
Need of NIA
The terrorist incidents are found to have complex inter-State and international linkages, and possible connection with organised crime, for example, the smuggling of arms and drugs, circulation of fake Indian currency etc.
The agency at the Central level was created for investigation of offences related to terrorism and certain other Act post-2008 Mumbai terror attacks.
Mandate of NIA
The cases are assigned to the NIA by the Central Government in accordance with section VI of the NIA Act, 2008.
The investigation of the cases is done by the Agency independently.
After investigation, the cases are placed before the NIA Special Court.
For prosecuting the accused under the Unlawful Activities (Prevention) Act, 1967 (UAPA) and certain other scheduled offences, the Agency seeks the sanction of the Central Government.
The sanction is granted under the UAPA based on the report of the ‘Authority’ constituted under section 45 (2) of the UAPA.
It is empowered to deal with terror-related crimes across states without special permission from the states.
Smuggling and Terror Funding
The amendments to the NIA Act has brought the offences related to the smuggling in High-Quality Counterfeit Indian Currency under the definition of a terrorist Act.
To curb various aspects of terrorist financing, a Terror Funding and Fake Currency Cell (TFFC) has been created in the NIA.
The Cell maintains a database of terror financing and cases of Fake Indian Currency Notes (FICN).
TFFC also conducts a part investigation into terror financing aspects of regular cases investigated by the NIA.
TFFC Cell conducts verifications of bank accounts of the suspects that are linked with Naxalite groups.
There is an exclusive Left Wing Extremism (LWE) cell to effectively deal with cases related to terror financing aspects of Naxalite groups.
The Ministry of Home Affairs (MHA) reviews the manpower, financial and infrastructure requirements of NIA from time to time.
Recent Amendment
The NIA (Amendment) Act, 2019 was passed by Parliament amending the original Act of 2008.
The Bill seeks to allow the NIA to investigate the following additional offences:
Human trafficking
Offences related to counterfeit currency or banknotes
Manufacture or sale of prohibited arms
Cyber-terrorism, and
Offences under the Explosive Substances Act, 1908
Jurisdiction of the NIA
The officers of the NIA have the same powers as other police officers in relation to the investigation of such offences, across India.
The officers of the NIA will have the power to investigate scheduled offences committed outside India, subject to international treaties and domestic laws of other countries.
The central government may direct the NIA to investigate such cases as if the offence has been committed in India.
The Special Court in New Delhi will have jurisdiction over these cases.
Special Courts
The Central Government for the trial of Scheduled Offences, constitute one or more Special Courts under Section 11 and 22 of the NIA Act 2008.
Composition: Special Court shall be presided over by a judge to be appointed by the Central Government on the recommendation of the Chief Justice of the High Court.
The Central Government may, if required, appoint an additional judge or additional judges to the Special Court, on the recommendation of the Chief Justice of the High Court.
Jurisdiction of Special Courts:
The Special Courts have all powers of the court of sessions under the Code of Criminal Procedure, 1973.
Where any question arises as to the jurisdiction of any Special Court, it shall be referred to the Central Government whose decision in the matter shall be final.
The Supreme Court can transfer a case pending before a Special Court to any other Special Court within that State or any other State in some exceptional cases where it is not feasible to conduct a peaceful, fair, impartial and speedy trial.
Similarly, the High Court has the power to transfer a case pending before a Special Court in a State to any other Special Court within that State.
Subject: Polity
Context: Gorkhaland Janmukthi Morcha (GJM) delegation to union minister meeting demands separate state.
Concept:
Gorkhaland consists of Nepali-speaking people of Darjeeling, Kalimpong, Kurseong and other hilly districts of West-Bengal. The people belonging to these areas have ethical, cultural and language differences with the Bengali community of West-Bengal. It is scheduled area under fifth schedule of Indian constitution.
Schedule & Tribal Areas – Fifth Schedule and Sixth Schedule of the Constitution
The two schedules entail the details about the control and management of the Scheduled and Tribal Areas:
The Scheduled and Tribal Areas are dealt with two articles:
Note: Article 339 of the Indian Constitution mentions the Union government’s control over the Scheduled Areas administration and welfare of the Scheduled Tribes
Definition of Scheduled and Tribal Areas
The areas inhabited by the socially and educationally backward ‘Aboriginals’ are called Scheduled Areas.
Quick Facts about Scheduled Areas
Part 10 of the Indian Constitution entails the provisions related to Scheduled and Tribal Areas with Articles 244 – 244 A.
President is empowered to declare an area as Scheduled Area
With the consultation of the governor of the state, the President can alter, add, diminish the boundary of a Scheduled Area
Both the Centre and the State have their roles to play in the administration of the Scheduled areas. While the governor of the state has to report annually to the President over the management of such area, the Centre gives directions to the state regarding the administration of such areas.
A tribal advisory council is a must for the states having scheduled areas
It has 20 members (Three-Fourth of which are Scheduled Tribes’ representatives in that state legislative assembly.)
The power to decide whether any central or state legislation implies over the state having scheduled areas, lies in the hands of the Governor.
Governor can also repeal or amend any regulations w.r.t to the state having scheduled areas but only with the assent of the President of India
The first commission to report on the administration and welfare of the Scheduled Areas was established in 1960 and was headed by UN Dhebar
There are 10 states having scheduled areas:
Andhra Pradesh
Chhattisgarh
Gujarat
Himachal Pradesh
Jharkhand
Madhya Pradesh
Maharashtra
Odisha
Rajasthan and
Telangana
Criteria for the declaration of the Scheduled Area:
Prominent numbers of tribal population, i.e. when tribal people are in majority in an area
Compactness and reasonable size of the area
A viable administrative entity such as a district, block or taluk, and
Economic backwardness of the area as compared to the neighbouring areas.
Quick Facts about Tribal Areas
Sixth Schedule mentions the provisions related to the tribal areas of the four states – Assam, Meghalaya, Tripura and Mizoram
Sizeable amount of autonomy has been given to the people belonging to the tribal areas of these four states to govern themselves
The tribal areas in these four states come under the name of ‘Autonomous Districts,’ but the state still has its executive authority over them
The power to organise and reorganise the tribal areas as autonomous districts lie with the governor of the state. He can also alter the name, boundary of such tribal areas.
One autonomous district can have different tribes, which for better administration is divided into autonomous regions by the governor
There is a district council for each autonomous district:
It has 30 members
Four are nominated by the governor – They perform their duties during the pleasure of the governor
26 are elected using the adult franchise – Their term of office is five years.
There is a separate regional council for each autonomous district
The laws related to the following can be made by the regional and autonomous councils with the assent of the governor:
Land
Forests
Canal water
Shifting cultivation
Village administration
Inheritance of property
Marriage and divorce
Social customs
The territorial jurisdictions of autonomous and regional councils may or may not have village councils and courts of trials of suits to mend issues rising between tribes. Such cases can also be taken over by the High Court but only after being specified by the governor.
The central and state acts do not apply to these autonomous and regional councils (unless modified and accepted.)
The tribal areas in the four states are given below:
8. CRISPR-CAS9
Subject: Science and tech
Context:
French-American duo Emmanuelle Charpentier and Jennifer Doudna have been awarded the 2020 Nobel Prize for the chemistry of CRISPR, which allows scientists to ‘cut-paste’ inside a genetic sequence
Concept:
The CRISPR technology
The CRISPR is an acronym for Clustered Regularly Interspaced Short Palindromic Repeats, developed in the year 2012
CRISPR has made gene editing very easy and simple, and at the same time extremely efficient.
The technology works in a simple way — it locates the specific area in the genetic sequence which has been diagnosed to be the cause of the problem, cuts it out, and replaces it with a new and correct sequence that no longer causes the problem.
The technology replicates a natural defence mechanism in some bacteria that use a similar method to protect itself from virus attacks.
Working of CRISPR
An RNA molecule is programmed to locate the particular problematic sequence on the DNA strand.
A special protein called Cas9, often described in popular literature as ‘genetic scissor’, is used to break and remove the problematic sequence.
A DNA strand, when broken, has a natural tendency to repair itself. But the auto-repair mechanism can lead to the re-growth of a problematic sequence.
Scientists intervene during this auto-repair process by supplying the desired sequence of genetic codes, which replaces the original sequence.
It is like cutting a portion of a long zipper somewhere in between and replacing that portion with a fresh segment.
Because the entire process is programmable, it has a remarkable efficiency and has already brought almost miraculous results.
Uses of CRISPR
There are a whole lot of diseases and disorders, including some forms of cancer, that are caused by an undesired genetic mutation.
These can all be fixed with this technology. There are vast applications elsewhere as well. Genetic sequences of disease-causing organisms can be altered to make them ineffective.
Genes of plants can be edited to make them withstand pests, or improve their tolerance to drought or temperature.
Ethical concerns
In November 2018, a Chinese researcher in Shenzen created an international sensation with his claim that he had altered the genes of a human embryo that eventually resulted in the birth of twin baby girls.
This was the first documented case of a ‘designer babies’ being produced using the new gene-editing tools like CRISPR.
What made matters worse was that the gene-editing was probably done without any regulatory permission or oversight.