Daily Prelims Notes 24 September 2021

September 24, 2021
Posted by: OptimizeIAS Team
Category: DPN

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Daily Prelims Notes

24 September 2021

Table Of Contents

1. Chief Economic Advisor

Subject – Economy

Context – CEA takes a dig at ‘freebie culture’

Concept –

India’s Chief Economic Advisor KV Subramanian exhorted State governments to focus on ushering in supply-side reforms and increase capital expenditure to attract private investment, instead of spending taxpayers’ money on revenue expenditure in the form of freebies and doles.

About CEA –

The Chief Economic Adviser (CEA) is a post in Government of India and is equivalent to rank of Secretary to the Government of India.
The CEA is the ex-officio cadre controlling authority of the Indian Economic Service.
The CEA is head of Economic Division of the Department of Economic Affairs, Ministry of Finance, Government of India.
Until 2009, the CEA’s position was a Union Public Service Commission appointment and until the 1970s almost all CEAs were members of the Indian Economic Service.
The CEA reports directly to the Minister of Finance.

Functions –

The key roles of India’s chief economic advisor are to determine the government’s overall strategy in managing the economy. The Chief Economic Advisor (CEA) advises the Government of India on matters related to finance, commerce, trade, economy.
The Economic Division examines domestic and international economic trends. It undertakes research studies focusing on economic policies and management of the economy. Based on the research it provides advice to the Government of India.
The CEA is the ex-officio cadre controlling authority of the Indian Economic Service.
Help prepare the government’s annual Economic Survey preceding the Union Budget, which provides a glimpse into its economic hits and misses.
Study and advice about financial market risks.
To help with advice in times of global turmoil.
To contribute in preparing the budget.

2. Multi-Member Ward System

Subject – Polity

Context – The Maha Vikas Aghadi (MVA) government in Maharashtra took a decision to reintroduce the multi-member ward system for all municipal councils and corporations barring the Brihan Mumbai Municipal Corporation (BMC), instead of the existing single-member ward system

Concept –

There will be a three-member ward system in municipal corporations and a two-member ward system in municipal councils.
In other words, municipal seats will be demarcated together to create a three- and two-member ward system in corporations and councils respectively.
There will be no change in the number of wards or corporators; the wards will be bunched together only for the purpose of the election.
Those contesting from the same party or alliance across the designated multi-member ward will campaign across the two or three wards, although they will file their nomination from individual wards.
If elected, each will represent the individual ward only.
Voters, however, will be able to select candidates in their own ward as well as in the other wards clubbed together in the multi-member ward.
Although candidates from the same party/alliance in a multi-member ward will be called a “panel”, a voter does not really select a panel, but individual candidates, who can be from the same party or from different parties.
A voter is also entitled to select just one candidate. But for this, the voter has to make a written submission to the presiding officer of the booth.
- This is to ensure documentary proof in case a party or candidate goes to court questioning how a candidate got fewer votes than others.

When has the system been tried before?

A three-member ward system in municipal corporations was introduced in 2001 by then Chief Minister Vilasrao Deshmukh. It was scrapped in 2006.
In 2011, Chief Minister PrithvirajChavan introduced a two-member ward system for municipal corporations and a four-member system for councils.
In 2016, Chief Minister M DevendraFadnavis changed it to a four-member system for corporations and a three-member system for councils.
In December 2019, the MVA government decided to scrap it and revert to the single-member ward system.

What is the rationale?

The reason for the non-partisan support to this scheme is that it appears to help a party or alliance maximise its seats.
A party can offset weak candidates with strong ones in a multi-member ward.
The hope is that the strongest of the candidates will carry the day for the others in the “panel”, even though this is not guaranteed.
The state Urban Development Department notifies rules for the manner of allotment and rotation of reservation of seats of corporators in wards.
Subsequently, the State Election Commission undertakes an exercise for the allotment for seats for the reserved category and rotating them.

3. Arjun Mk-1A tanks

Subject – Security

Context – ₹7,523cr. order for Arjun Mk1A tanks

Concept –

The Defence Ministry on Thursday placed an order with the Heavy Vehicles Factory (HVF), Avadi, for the supply of 118 indigenous Arjun Mk-1A main battle tanks for the Army at a cost of ₹7,523 crore.
The state-of-the-art MBT Mk-1A is a new variant of Arjun tank designed to enhance fire power, mobility and survivability. Infused with 72 new features and more indigenous content from the Mk-1 variant, the tank would ensure effortless mobility in all terrains, besides precise target engagement during day and night.
The MBT Arjun Mk-1A was designed and developed by the Combat Vehicles Research and Development Establishment (CVRDE), along with the other laboratories of the Defence Research and Development Organisation (DRDO).
- The development of indigenous Main Battle Tank Arjun was started by the Defence Research and Development Organisation (DRDO) in the late 1980s primarily to augment the predominantly Russian-made armoured fleet.
The Army has two regiments of Arjun Mk1 tanks in service inducted between 2005 and 2010.
The Arjun Mk-1A has 14 major upgrades over the Mk1 variant, which were formulated and approved in October 2018.
The Mk1A will be without missile firing capability and will be incorporated as and when the development is complete.
An Arjun hub has been set up in Jaisalmer where 248 rotables have been deposited to ensure quick support and maintenance for the fleet.

4. RBI’s Government Securities Acquisition Programme (G-SAP)

Subject – Economy

Context – RBI’s G-SAP 2.0 may hinder banks’ credit offtake

Concept –

Under the G-SAP 2.0 programme, the RBI will conduct open market purchases of government securities worth ₹1.2 lakh crore across the various maturity spectrum.
The programme aims to ensure the orderly evolution of the yield curve such that all segments of the yield curve remain liquid.
G-SAP 2.0 is the Indian version of quantitative easing, which has been the go-to monetary policy to pull economies out of recession after the global financial crisis.
In quantitative easing, central banks pump money into the economy through the banking system, with the tacit belief that the banks will pass on that liquidity to the rest of the economy in the form of credit, thus propping up the productive activity in the economy.
The current annual credit and deposit growth rates for the scheduled commercial banks are 10 per cent and 6 per cent, respectively, raising serious concerns about the pass-through.
The ownership pattern of government securities reveals that the commercial banks hold approximately 40 per cent of government securities.
The massive quantitative easing programme under G-SAP may flatten the yield curve and inflate the prices of government securities held by the banks, causing an increase in the banks’ equity.
The Reserve Bank of India (RBI) has given a twist to its Operation Twist exercise, subsuming purchase of longer tenor Government Securities (G-Secs) under the G-Sec Acquisition Programme (G-SAP) 2.0 and simultaneously selling short-term G-Secs under open market operation (OMO).
- Under special OMOs (operation twists) that the RBI usually conducts, the notified amounts for the purchase and sale legs are equal and, therefore, intended to be liquidity neutral. These are aimed at lowering longer term interest rates, thereby reducing the term premium.

To know more about G-SAP, please click here.

5. Hydrofluorocarbons

Subject – Environment

Context – EPA rule sharply limits HFCs, gases used as refrigerants

Concept –

Environmental Protection Agency is sharply limiting domestic production and use of hydrofluorocarbons, highly potent greenhouse gases commonly used in refrigerators and air conditioners.
The new rule announced is intended to decrease U.S. production and use of HFCs by 85% over the next 15 years, part of a global phaseout designed to slow global warming.
The administration also is taking steps to crack down on imports of HFCs, greenhouse gases that are thousands of times more powerful than carbon dioxide. They often leak through pipes or appliances that use compressed refrigerants and are considered a major driver of global warming.
President Joe Biden has pledged to embrace a 2016 global agreement to greatly reduce HFCs by 2036.
The rule, set to take effect in late October, is expected to reduce harmful emissions by the equivalent of 4.5 billion metric tons of carbon dioxide by 2050.

To know about Kigali Amendment to the Montreal Protocol and about HFCs, please click here.

6. RBI Retail Direct platform for Government Securities (G-secs)

Subject – Economy

Context – G-Sec Retail Direct: Mkt players seek easy KYC, interoperability

Concept –

For effective implementation of the RBI Retail Direct platform for Government Securities (G-secs), market participants are pushing for tweaks in the rules, seeking relaxation in KYC norms, interoperability for buyers and a clarity on whether bonds bought through the retail direct platform must be held in demat form.
Investments done directly by retail investors in G-sec may also not reflect in the single record of all financial assets, as being envisaged under the account aggregator guidelines.
The Reserve Bank of India in July unveiled a scheme allowing retail investors to directly participate in the G-sec market. They can open and maintain a ‘Retail Direct Gilt Account’ (RDG Account) with the RBI through a portal, which will also provide access to primary issuance of G-Secs and the secondary market as well.
G-Secs held in demat mode are reflected in the CSGL or Constituent Subsidiary General Ledger (SGL) account of the depositories.
In 2005, RBI created its online platform, Negotiated Dealing System (NDS-OM), operated by the Clearing Corporation and Indian Ltd (CCIL), for issue of G-Secs.
- At present, the RBI’s Core Banking Solution (E-Kuber), trading platform (NDS-OM), depository system (PDO/SGL) and clearing and settlement by CCIL, together provide a comprehensive, seamless and end-to-end platform for trading and settlement of G-Secs for banks and select institutional investors on T+1 basis with settlement guarantee.
In 2005, RBI created its online platform, Negotiated Dealing System (NDS-OM), operated by the Clearing Corporation and Indian Ltd (CCIL), for issue of G-Secs.
At present, the RBI’s Core Banking Solution (E-Kuber), trading platform (NDS-OM), depository system (PDO/SGL) and clearing and settlement by CCIL, together provide a comprehensive, seamless and end-to-end platform for trading and settlement of G-Secs for banks and select institutional investors on T+1 basis with settlement guarantee.
As RBI is not a Financial Information Provider under its Account Aggregator Directions, the investment held in this account will not reflect in the single record of all financial assets.
The scheme is also silent on whether G-Secs held in this retail account in SGL mode can be demated.

To know about G-Secs, please click here.

7. QS Graduate Employability Rankings

Subject – Governance

Context – IISc. among top 500 global institutions in QS Employability rankings

Concept –

The Indian Institute of Science (IISc.), Bengaluru, and six Indian Institutes of Technology (IITs) are among 12 Indian institutions that have figured in the top 500 universities in QS Graduate Employability Rankings 2022.
and OP Jindal Global University have figured in the 301¬500 category.
While three central universities have made it to the list, among the private universities in the list are OP Jindal Global University, Sonepat, and BITS Pilani.
The scores for the rankings are calculated on the basis of ability to produce graduates with the ‘soft skills’ required for the modern workplace.
QS considered the following indicators and weightings to calculate the scores for GER 2022–employer reputation (30 per cent), alumni outcomes (25 per cent), partnerships with employers per faculty (25 per cent), employer-student connections (10 per cent) and graduate employment rate (10 per cent).

8. Gogra mapping

Subject – Geography

Context – Gogra grazing areas off-limits

Concept –

Villagers have lost access to a vast grazing area near Gogra in eastern Ladakh owing to growing Chinese presence in the area.
Gogra is one of the several friction points in eastern Ladakh where Indian and Chinese troops have been engaged in a stand-off since April-May 2020. The troops have disengaged from the north and south banks of the Pangong Tso and Gogra sector, creating “no zones” in areas along the un-demarcated Line of Actual Control (LAC) that was regularly patrolled by Indian troops prior to April 2020.
The Army had stopped the villagers’ access to the Kiu La pass that was till a few years ago frequented by the villagers of Lukung, Phobrang and Yourgo for cattle-grazing.

Location of Hot Springs and Gogra Post:

Hot Springs is just north of the Chang Chenmo river and Gogra Post is east of the point where the river takes a hairpin bend coming southeast from Galwan Valley and turning southwest.
The area is north of the Karakoram Range of mountains, which lies north of the Pangong Tso lake, and south east of Galwan Valley.

9. Department-Related Standing Committees

Subject – Polity

Context – Ahead of the reconstitution of the 24 Department¬Related Standing Committees (DRSC), Rajya Sabha Chairman M. Venkaiah Naidu sent a detailed record of participation by the members in committee meetings over the past year to the political parties, calling them to nominate members only based on their participation and interest.

Concept –

To know about Parliamentary Standing Committees, please click here.

10. FASTER System

Subject – Polity

Context – SC introduces FASTER system to send records

Concept –

FASTER stands for “Fast and Secured Transmission of Electronic Records”.
In a big fillip to the fundamental rights of life, dignity and personal liberty, the Supreme Court has introduced a new system by which crucial decisions, including orders on bail and stay of arrest, can be communicated electronically to prison authorities and investigating agencies through a secure channel.
The system is meant to ensure that undertrials are not made to wait for days on end behind bars to be released because the certified hard copies of their bail orders took time to reach the prison.
The system would also prevent unnecessary arrests and custody of people even after the court had already granted them its protection. It may even communicate a stay on an execution ordered by the final court on time.

11. Pradhan Mantri Digital Health Mission

Subject – Government Schemes

Context – PM to launch health mission on Sept. 27

Concept –

This scheme will be launched with the aim of harnessing technology in order to improve the effectiveness, efficiency, and transparency of healthcare delivery across India.
It seeks to provide a better access to healthcare data.
It also seeks to create a national digital health infrastructure by building Health IDs, Unique Identifiers for doctors & health facilities, telemedicine & e-pharmacy, Personal Health Records etc.
This scheme will digitalize the healthcare by creating a country-wide digital health ecosystem.
It will enable the patients to store, access and give consent to share their health records with doctors as well as health facilities of their choice.
Unique digital health ID – This health ID will comprise of all the health records of each individual. It will be created with the help of details such as Aadhar and mobile number in order to generate a unique ID for them.
- In order to issue the id, the system will collect certain basic details such as demography and location, family or relationship, and contact details that can be updated from time to time.
- The ID will be used for uniquely identifying persons, authenticating them and threading their health records (only with the informed consent of the patient) across multiple systems and stakeholders.
National digital health ecosystem – Under this scheme, a national digital health ecosystem will be created by means of provision of a wide-range of data, information & infrastructure services, and duly leveraging open & interoperable standards-based digital systems. It will also provide security, confidentiality and privacy of personal information related to health.
States running the National Digital Health Mission – The National Digital Health Mission is currently in its pilot phase in the union territories of Andaman & Nicobar Islands, Dadra & Nagar Haveli, Chandigarh, and Daman & Diu, Lakshadweep, Ladakh and Puducherry.
The primary aim of this mission is to enhance the efficiency of the healthcare system in India.
The mission essentially consists of four main building blocks — unique digital health id, health care professionals registry, health facility registry and electronic health records.
To begin with, three components — unique health id, doctor’s registry and the health facility registry — have been made operational.
The doctors’ registry will carry details of all healthcare professionals involved in the delivery of healthcare services across both modern and traditional systems of medicine.
The health facility registry will act as a database of all health facilities across different systems of medicine, including both public and private health facilities such as hospitals, clinics, diagnostic laboratories and imaging centres, pharmacies, etc.
The initiative supports Universal Health Coverage in an efficient, accessible, inclusive, affordable and safe manner through provision of a wide-range of data, information and infrastructure services.

12. Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Subject – IR

Context – China sends fighter jets towards Taiwan. The latest show of force came as Taiwan said it had submitted an application to join the 11-nation CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) trade deal, days after China said it had formally applied to join the Pacific pact.

Concept –

To know about Comprehensive and Progressive Agreement for Trans-Pacific Partnership, please click here.

13. National Financial Reporting Authority (NFRA)

Subject – Economy

Context – Accounting regulator raps EY arm’s audit of IL&FS firm

Concept –

To know more about NFRA, please click here.

14. Service Exports from India Scheme (SEIS)

Subject – Economy

Context – Govt. notifies SEIS rates for 201920, sets ceiling

Concept –

Service Exports from India Scheme (SEIS) aims to promote export of services from India by providing duty scrip credit for eligible exports.
- A Duty Credit Scrip is like a credit certificate issued by the Director General of Foreign Trade (DGFT) and can be used to pay various duties/taxes to the Central Govt.
Under the scheme, service providers, located in India, would be rewarded under the SEIS scheme, for all eligible export of services from India.
SEIS was earlier termed as Served from India Scheme (SFIS).
The scheme is implemented and administrated by the Government’s Ministry of Commerce and Industry, in association with the Directorate General of Foreign Trade (DGFT).

Eligibility

Service Providers of notified services, located in India are eligible for the Service Exports from India Scheme.
To be eligible, a service provider (Company / LLP / Partnership Firm) should have a minimum net free foreign exchange earnings of USD 15000 in the preceding financial year to be eligible for duty credit scrips.
For proprietorships or individual service providers, minimum net foreign exchange earnings of USD10,000 in the preceding financial year is required to be eligible for the scheme.
Also, in order to claim reward under the SEIS scheme, the service provider shall have to have an active Import Export Code (IE Code) at the time of rendering such services for which rewards are claimed.

Merchandise Exports from India Scheme (MEIS)

MEIS was launched with an objective to enhance the export of notified goods manufactured in a country.
This scheme came into effect on 1 April 2015 through the Foreign Trade Policy and was in existence till 2020.
It intended to incentivize exports of goods manufactured in India or produced in India.
The incentives were for goods widely exported from India, industries producing or manufacturing such goods with a view to making Indian exports competitive.
The MEIS covered almost 5000 goods notified for the purpose of the scheme.

15. Competition Commission of India

Subject – Governance

Context – Digital cos’ data hegemony may lead to ‘attention economy’, says CCI chief

Concept –

Competition Commission chief Ashok Kumar Gupta flagged that data hegemony by some digital companies may lead to “attention economy” in which big tech players work to capture users’ attention, build profiles of their choices and sell the profiles to advertisers.
In an “attention economy”, big tech players work to capture users’ attention, build profiles of their choices and habits, then sell those profiles to advertisers.
“Technology-laden economy” is bringing new issues and concerns to competition policy discourse.

To know about Competition Commission of India, please click here.