Daily Prelims Notes 11 May 2021
- May 11, 2021
- Posted by: OptimizeIAS Team
- Category: DPN
Daily Prelims Notes
11 May 2021
Table Of Contents
- Pradhan Mantri Garib Kalyan Anna Yojana
- B.1.617: Indian Variant of Coronavirus
- Jerusalem’s Al-Aqsa
- Breakthrough Cases
- Commodities in Super Cycle
- Wilful Defaulter
- Business Responsibility and Sustainability Report
- FATF – Financial Action Task Force
- Black Fungus
- Operation Samudra Setu II
- UN Bioweapons Convention (UNBWC)
1. Pradhan Mantri Garib Kalyan Anna Yojana
Topic: Food Security
Context: 13 states distributing free grains under PMGKAY
Concept: The PMGKAY was first announced by Finance Minister Nirmala Sitharaman as part of the government’s Rs 1.70 lakh crore relief package under “Pradhan Mantri Garib Kalyan Yojana for the poor to help them fight the battle against coronavirus” on March 26 2020.
- Initially, the scheme was for three months — May, June and July – but later it was extended till November 2020.However, in April 2021, the government had announced its decision to restart the PMGKAY.
- The program is operated by the Department of Food and Public Distribution under the Ministry of Consumer Affairs, Food and Public Distribution.
- The scheme aims to feed the poorest citizens of India by providing grain through the Public Distribution System, to all the priority households (ration card holders and those identified by the Antyodaya Anna Yojana scheme).
- Under PMGKAY, around 80 Crore NFSA beneficiaries covered under both categories of National Food Security Act (NFSA), namely Antyodaya Anna Yojana (AAY) and Priority Householders (PHH), will be provided with an additional quota of free-of-cost food grains (Rice/Wheat) at a scale of 5 Kgrice or wheat (according to regional dietary preferences) per person per month, and 1 kg of dal to each family holding a ration card over and above their regular monthly entitlements under NFSA.
- Government of India will bear all expenditure of over ₹26,000 Crore on account of food subsidy and Central assistance to states/UTs on account of intrastate transportation etc.
- The scale of this welfare scheme makes it the largest food security program in the world.
- A key issue is that the beneficiaries of the National Food Security Act are based on the last census (2011). The number of food-insecure people has increased since then and they remain uncovered.
2. B.1.617: Indian Variant of Coronavirus
Topic: Science & Technology
Context: The B-1617 variant of coronavirus, first identified in India, has been classified as a “variant of concern” at the global level by the World Health Organisation (WHO).
Concept:
Variant of Concern– These are variants for which there is evidence of an increase in transmissibility, more severe disease (increased hospitalizations or deaths), significant reduction in neutralization by antibodies generated during previous infection or vaccination, reduced effectiveness of treatments or vaccines, or diagnostic detection failures.
Virus Variant:
- Variants of a virus have one or more mutations that differentiate it from the other variants that are in circulation. While most mutations are deleterious for the virus, some make it easier for the virus to survive.
- The SARS-CoV-2 (Corona) virus is evolving fast because of the scale at which it has infected people around the world.
- The original pandemic virus (founder variant) was Wu.Hu.1 (Wuhan virus
What causes a virus to change to a new variant?
- When a virus is widely circulating in a population and causing many infections, the likelihood of the virus mutating increases. The more opportunities a virus has to spread, the more it replicates – and the more opportunities it has to undergo changes.
- Most viral mutations have little to no impact on the virus’s ability to cause infections and disease. But depending on where the changes are located in the virus’s genetic material, they may affect a virus’s properties, such as transmission (for example, it may spread more or less easily) or severity (for example, it may cause more or less severe disease).
Concerns related to different variants
- Increased Transmission
- Increased Severity
- Lowered Immunity
- Lowered efficacy of vaccines
Topic: World History
Context: On Monday, Israeli police stormed the Al-Aqsa mosque compound in East Jerusalem, leaving a reported 300 people injured.
The mosque & the Mount
- The Al-Aqsa is located on a plaza at Temple Mount, which is known in Islam as Haram-e-Sharif. The Mount is also Judaism’s holiest site. The most imposing structure on the compound is the Dome of the Rock, with its golden dome. The Western Wall, also known as the Wailing Wall sacred to Jews, is one side of the retaining wall of the Al-Aqsa compound.
- The walled plateau is also the holiest site for Jews, who refer to it as the Temple Mount, because it was the location of biblical temples. Romans destroyed the Second Temple in 70 A.D., with only the Western Wall remaining. The mosques were built centuries later.
- Al-Aqsa is central to the rival claims over Jerusalem. Both Israel and Palestine have declared it their capital.
- Soon after the 1967 Six-Day War ended, Israel gave back to Jordan the administration and management of the Al-Aqsa compound. While non-Muslims have not been allowed to worship at Al-Aqsa, Jewish individuals and groups have made repeated attempts to gain entry to the Mount Temple plaza.
- It has led to repeated clashes and tensions at Al-Aqsa. Frequently, the Israeli police have backed such attempts.
- The upsurge in violence came as Israel celebrated “Jerusalem Day”, marking its capture of East Jerusalem in the 1967 Arab-Israeli war.
World Concerns
Jordan and other Arab nations that have friendly ties with Israel have condemned its crackdown on the protests, while Israel’s archenemy Iran has encouraged Palestinian attacks. The U.S. and the EU have condemned the violence and expressed concern about the evictions.
Topic: Science & Technology
Context: A small-scale study in healthcare workers at a private hospital in Delhi found that “breakthrough” infections occurred in 13.3% of them (about 1 in 7), with one requiring hospitalisation.
Concept:
- People who get infected with Covid-19 even after getting a vaccine shot are known as “breakthrough cases”, implying that the infection has broken through the protection provided by the vaccine.
- According to the Union Ministry of Health and Family Welfare, the incidence of such cases in both vaccines in use in India — Covaxin and Covishield — has remained low.
Implications
- Covid-19 infections after complete doses of vaccination will be important morbidity post pandemic, and may become a source of further infections.
- ‘Breakthrough’ infection in India after complete vaccination should be a prime area of research.
Topic: Economy
Context: Steel, the most commonly used input in construction sector and industries, is at all-time highs, as most metals including base and precious metals prices have gone through the roof over the last one year.
Concept:
- Recently, there has been an across-the-board rise in global commodity prices that is being billed as a new commodity super cycle.
- A commodity super cycle is a sustained period of abnormally strong demand growth that producers struggle to match, sparking an increase in prices that can last years or in some cases a decade or more.
Implications:
- An across-the-board rise in global commodity prices is leading to input cost pressures and is a growing concern, as it is not only expected to have a bearing on cost of infrastructure development in India but also have an impact on the overall inflation, economic recovery and policy making.
- The sharp jump in commodity prices is a result of money starting to hide in assets that are store of value as there is an expectation that inflation may rise.
- Economists and experts say the rise in commodity prices have now become a macroeconomic monitoring variable.
- For every percentage point growth in GDP, this would lead to a backward increase in cost on account of increase in price of steel and cement. Also, if we increase the cost of building infra, it will lead to increase in costing of the project and then the toll prices among others.
- Higher metal prices will lead to higher WPI inflation and so the core inflation may not come down.
Solution:
- The decision makers need to look at the mismatch in supply and demand and they need to find out where to invest, where to incentivise through PLI scheme to prepare ourselves to deal with the situation.
Topic: Economy
Context: Amid Covid effect, bank steps, wilful defaults rise Rs 38,976 crore
Concept:
As per the Reserve Bank of India’s (RBI) classification, a ‘wilful default’ would be deemed to have occurred if the borrower has defaulted in meeting their repayment obligations to the lender even when they have the capacity to honour the said obligations.
Central Repository of Information on Large Credits (CRILC), is a central repository or database where the RBI stores credit information on all borrowers having aggregate fund-based and non-fund based exposure of Rs 5 crores and above.
Hence willful defaulter is when there is:
- Default in repayment obligations by the unit to the lender even when it has the capacity to honour the said obligations.
- Default in repayment obligations by the unit to the lender and has not utilized the finance from the lender for the specific purposes for which finance was availed of but has diverted the funds for other purposes.
- Default in repayment obligations by the unit to the lender and has siphoned off the funds so that the funds have not been utilized for the specific purpose for which finance was availed of, nor are the funds available with the unit in the form of other assets.
- Default in repayment obligations by the unit to the lender and has also disposed off or removed the movable fixed assets or immovable property given by it for the purpose of securing a term loan without the knowledge of the bank/lender.
How willful defaulters are affecting the economy?
- The economy is facing the issue of Non-Performing Assets (NPAs) in Banking Sector especially in case of Public Sector Banks (PSBs). NPA is an asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank. In these NPAs there are two categories of defaulters:
- Those who are unable to pay back due to economic slowdown both in domestic and global market and other reasons outside their control.
- Willful defaulters.
Government initiatives
The Government has taken various measures to deal with both these categories of defaulters.
- In order to deal with default due to economic slowdown, the Government has taken various measures to revive the stressed sectors which mainly include steel, textiles, power and roads among others.
- The Government has also done recapitalization of banks by providing Rs. 25,000 crore in the last year Union Budget 2015-16 as well as in this year’s budget 2016-17.
- Transparency and professionalism has been brought in appointment process for top management positions in the PSBs including Chairmen and Managing Directors.
- The Government has taken various measures to make the management professional, has given full autonomy to the banks in taking commercial decisions without any interference from the Government.
- Insolvency and Bankruptcy Law has been cleared by the Parliament.
- The SARFAESI Act and DRT Act have been amended to make the recovery process more efficient and expedient.
- Government has decided to establish six new Debt Recovery Tribunals (DRTs), to speed up the recovery of bad loans of the banking sector.
- Government has advised Public Sector Banks (PSBs) to constitute a Board level Committee for monitoring of recovery and to increase the pace of recovery and manage NPAs.
7. Business Responsibility and Sustainability Report
Topic: Economy
Context: Regulator SEBI on Monday came out with disclosure requirements under business responsibility and sustainability reporting, covering environmental, social and governance perspectives, which will be applicable on the top 1,000 listed entities by market capitalisation.
Concept:
- The new report — Business Responsibility and Sustainability Report (BRSR)– will replace the existing Business Responsibility Report (BRR).
- The move is expected to bring in greater transparency and enable market participants to identify and assess sustainability-related risks and opportunities.
- Under BRSR, listed entities need to disclose about an overview of the entity’s material ESG (environmental, social and governance) risks and opportunities, approach to mitigate or adapt to the risks along with financial implications of the same.
- In addition, sustainability related goals and targets and performance against the same need to mentioned in the report.
- Environment related disclosures cover aspects such as resource usage (energy and water), air pollutant emissions, green-house (GHG) emissions, transitioning to circular economy, waste generated and waste management practices, bio-diversity.
- Social related disclosures would cover the workforce, value chain, communities and consumers.
- In the social related disclosure, SEBI said entities need to disclose about gender and social diversity including measures for differently abled employees and workers, turnover rates, median wages, welfare benefits to permanent and contractual employees / workers, occupational health and safety, trainings.
- At communities’ level, listed entities will have to make disclosures on Social Impact Assessments (SIA), Rehabilitation and Resettlement, Corporate Social Responsibility, among others.
- In the case of consumers, the regulator said listed entities need to disclose on product labelling, product recall, consumer complaints in respect of data privacy, cyber security among others.
- The BRSR will be applicable on the top 1,000 listed entities by market capitalization.
- In order to give time to companies to adapt to the new requirements, SEBI said the reporting would be on voluntary basis for financial year 2021-22 and on a mandatory basis from 2022-23.
- The filing of the BRR containing ESG disclosures was first introduced for listed entities in 2012 and since then, a number of developments have taken place.
- Overall, higher standards of ESG disclosures and transparency, will help in attracting more capital and investment.
8. FATF – Financial Action Task Force
Topic: Money Laundering
Context: Pakistan government to set new rules to meet FATF requirements.
Concept:
- The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 during the G7 Summit in Paris.
- The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
- Its Secretariat is located at the Organisation for Economic Cooperation and Development (OECD) headquarters in Paris.
- Member Countries: it consists of thirty-seven member jurisdictions. India is one of the members.
- FATF has two lists:
- Grey List: Countries that are considered safe haven for supporting terror funding and money laundering are put in the FATF grey list. This inclusion serves as a warning to the country that it may enter the blacklist.
- Black List: Countries known as Non-Cooperative Countries or Territories (NCCTs) are put in the blacklist. These countries support terror funding and money laundering activities. The FATF revises the blacklist regularly, adding or deleting entries.
- The FATF Plenary is the decision-making body of the FATF. It meets three times per year.
Composition:
The FATF currently comprises 37 member jurisdictions and 2 regional organisations, representing most major financial centres in all parts of the globe. It also has observers and associate members.
Topic: Science & Technology
Context: At least 60 ‘Black Fungus’ cases detected in Hyderabad
Concept:
- Mucormycosis — a rare form of fungal infection which could affect vision, and threatens life, if people do not get treated immediately after spotting its symptoms.
- Mucormycosis has to be suspected in COVID-19 patients, diabetics and immuno-suppressed individuals when they have sinusitis – nasal blockade or congestion, nasal discharge (blackish/bloody), local pain on the cheek bone.
Symptoms:
One-sided facial pain, numbness or swelling. Blackish discolouration over bridge of nose or palate. Toothache, loosening of teeth, jaw involvement. Blurred or double vision with pain; fever, skin lesion; thrombosis & necrosis (eschar). Chest pain, pleural effusion, haemoptysis, worsening of respiratory symptoms
Treatment:
Treatment includes aggressive surgery or radical debridement and exenteration of effected or blind eye, long term follow-up along with anti-fungal medications. Apart from surgery, prolonged anti-fungal treatment plays a major role in curing the patient.
Topic: Science & Technology
Context: Three naval ships bring medical supplies from Singapore, West Asia.
Concept:
- Indian Navy has launched Operation Samudra Setu-II for shipment of Oxygen-filled containers to India.
- Operation Samudra Setu was launched in May 2020 as part of the national effort to repatriate Indian citizens from overseas during the Covid-19 pandemic.
- Operation Samudra Setu was launched along with Vande Bharat Mission (VBM).
VBM is the biggest civilian evacuation exercise to bring back Indian citizens stranded abroad amidst the coronavirus-induced travel restrictions. - Indian Navy has previously undertaken similar evacuation operations as part of Operation Sukoon in 2006 (Beirut) and Operation Rahat in 2015 (Yemen).
11. UN Bioweapons Convention (UNBWC)
Topic: IR
Context: A report in The Australian claims US state department has accessed a document that shows the Chinese military was discussing weaponising coronaviruses in 2015.
Concept:
The Biological Weapons Convention (BWC) effectively prohibits the development, production, acquisition, transfer, stockpiling and use of biological and toxin weapons. It was the first multilateral disarmament treaty banning an entire category of weapons of mass destruction (WMD).
The BWC is a key element in the international community’s efforts to address WMD proliferation and it has established a strong norm against biological weapons. The Convention has reached almost universal membership with 183 States Parties and four Signatory States.
Biological Weapons Convention
Formally known as “The Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on their Destruction”, the Convention was negotiated by the Conference of the Committee on Disarmament in Geneva, Switzerland. It opened for signature on 10 April 1972 and entered into force on 26 March 1975. The BWC supplements the 1925 Geneva Protocol, which had prohibited only the use of biological weapons.
States Parties to the Biological Weapons Convention undertook “never in any circumstances to develop, produce, stockpile or otherwise acquire or retain:
- microbial or other biological agents, or toxins whatever their origin or method of production, of types and in quantities that have no justification for prophylactic, protective or other peaceful purposes;
- Weapons, equipment or means of delivery designed to use such agents or toxins for hostile purposes or in armed conflict.”