Daily Prelims Notes 26 November 2020
- November 26, 2020
- Posted by: OptimizeIAS Team
- Category: DPN
Table Of Contents
- 5G NETWORK
- FOREIGN PORTFOLIO INVESTMENT
- INFRASTRUCTURE FUNDING
- LVB – DBS MERGER
- SAMVIDHAN DIWAS
- NATIONAL PORTAL FOR TRANSGENDER PERSONS
- RE-INVEST 2020
1. 5G NETWORK
Subject: Science & tech
- 5G or fifth generation is the latest upgrade in the long term evolution (LTE) mobile broadband networks.
- The first generation of networks allowed only mobile voice calls to be made, while the second generation allowed mobile voice calls as well as sending of short text messages.
- It was the third generation or 3G network which allowed web browsing on mobile devices, the speed and latency of which improved with fourth-generation or 4G networks.
- The 5G networks will have even faster speeds with latency down to between 1-10 milliseconds.
- Latency is the time a device takes to communicate with the network, which stands at an average of up to 50 milliseconds for 4G networks across the world.
How does it works?
- All 5G networks chiefly operate on three spectrum bands.
- The low-band spectrum has been proven to have great coverage and works fast even in underground conditions. However, the maximum speed limit on this band is 100 Mbps (Megabits per second).
- In the mid-band spectrum, though the speeds are higher, telcos across the world have registered limitations when it comes to coverage area and penetration of telephone signals into buildings.
- The high-band spectrum offers the highest speed but has extremely limited network coverage area and penetration capabilities.
- The telcos using this band rely on the existing LTE networks and will need to install a number of smaller towers to ensure adequate coverage and high-speed performance.
What does it mean to be 5G ready?
- Globally many companies have been deploying 5G networks across their service areas as early as 2018.
- Not only the network, but the devices will also have to be 5G ready for customers to be able to enjoy the maximum benefits of the latest upgrade in mobile broadband.
- One of the major improvements in 5G is the use of beam tracking to follow all devices on the network to ensure consistent connection in real-time for the device.
- 5G networks are also designed to multiple-input multiple-output (MIMO) efficient which improves signal throughput for all devices on the network.
India’s position on the deployment of 5G:
- Companies, both telecom service providers and their equipment vendors, have completed lab trials of 5G network components but are yet to commence field trials, which were initially scheduled to happen last year.
- For the same, telecom companies are awaiting allocation of test spectrum from the Department of Telecommunications (DoT).
- The service providers have already tied up with equipment makers like Nokia, Ericsson, etc for deploying their 5G networks.
2. FOREIGN PORTFOLIO INVESTMENT
Context: Foreign portfolio investors (FPIs) have been making record investments in Indian equities the last few weeks taking their exposure to a lifetime high of about ₹1.5-lakh crore in the eight months into the current fiscal year.
- Foreign portfolio investment (FPI) consists of securities and other financial assets passively held by foreign investors. It includes both individuals and foreign institutional investors.
- It does not provide the investor with direct ownership of financial assets and is relatively liquid depending on the volatility of the market.
- FPI is part of a country’s capital account and is shown on its Balance of Payments (BOP).
- The BOP measures the amount of money flowing from one country to other countries over one monetary year.
- The investor does not actively manage the investments through FPIs, he does not have control over the securities or the business.
- The investor’s goal is to create a quick return on his money.
- FPI is often referred to as “hot money” because of its tendency to flee at the first signs of trouble in an economy.
- FPI is more liquid and less risky than Foreign Direct Investment (FDI).
- A Foreign Direct Investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. FDI lets an investor purchase a direct business interest in a foreign country.
- FPI and FDI are both important sources of funding for most economies. Foreign capital can be used to develop infrastructure, set up manufacturing facilities and service hubs, and invest in other productive assets such as machinery and equipment, which contributes to economic growth and stimulates employment.
- Securities and Exchange Board of India (SEBI) brought new FPI Regulations, 2019, replacing the erstwhile FPI Regulations of 2014.
Context: To drive infrastructure creation in the country, the Union Cabinet approved the infusion of ₹6,000 crore equity in National Infrastructure Investment Fund’s (NIIF’s) debt platform in the next two years.
- Out of the proposed amount, ₹2,000 crore will be infused in the current financial year.
- NIIF Debt Platform is sponsored by National Investment and Infrastructure Fund (NIIF), comprising of Aseem Infrastructure Finance Limited (AIFL) and NIIF Infrastructure Finance Limited (NIIF-IFL).
- The NIIF Strategic Opportunities Fund has set up a Debt Platform comprising an NBFC Infra Debt Fund and an NBFC Infra Finance Company.
- NIIF through its Strategic Opportunities Fund (‘NIIF SOF’) owns a majority position in both the companies and has already invested ~ Rs.1,899 crore across the Platform.
- The Strategic Opportunities Fund (SOF fund) through which the NIIF investment has been made will continue to support the two companies apart from investing in other suitable investment opportunities.
- The government had set up the NIIF in 2015 as an investment vehicle for funding commercially viable greenfield, brownfield and stalled infrastructure projects.
- The Indian government is investing 49% and the rest of the corpus is to be raised from third-party investors such as sovereign wealth funds, insurance and pension funds, endowments, etc.
- NIIF’s mandate includes investing in areas such as energy, transportation, housing, water, waste management and other infrastructure-related sectors in India.
- NIIF currently manages three funds each with its distinctive investment mandate. The funds are registered as Alternative Investment Fund (AIF) with the Securities and Exchange Board of India (SEBI).
Context: The Union Cabinet has given its approval to the Scheme of Amalgamation of Lakshmi Vilas Bank Limited (LVB) with DBS Bank India Limited (DBIL).
- To protect depositors’ interest and in the interest of financial and banking stability, RBI under section 45 of the Banking Regulation Act, 1949, has put a moratorium for a period of 30 days for LVB.
- In parallel, RBI, in consultation with Government, superseded the Board of Directors of LVB and appointed an Administrator to protect the depositors’ interest.
- RBI prepared and provided a scheme for the bank’s amalgamation. With the approval of the scheme, LVB will be amalgamated with DBIL from the appointed date, and with this there will no further restrictions on the depositors regarding withdrawal of their deposits.
- DBIL is a banking company licenced by RBI and operating in India through wholly owned subsidiary model, DBIL has the advantage of a strong parentage of DBS, a leading financial services group in Asia and headquartered in Singapore.
Context: From January 15, all consumers trying to dial a mobile number using landline phones will need to prefix the mobile number with 0, the department of telecom said.
- With the consideration of TRAI Recommendation on “Ensuring Adequate Numbering Resources for Fixed Line and Mobile Services” Department of Telecommunications has taken the decision of implementing the following,
- All Fixed to Mobile calls will be dialed with prefix ‘0’ from 15th January, 2021.
- There will be no change in dialing plan from fixed to fixed, mobile to fixed and mobile to mobile calls.
- Suitable announcement will be made for the same. This announcement shall be played whenever a subscriber dials a fixed to mobile call without prefixing ‘0’.
- All fixed line subscribers will be provided with ‘0’ dialing facility.
- A total of approximately 2539 million numbering series is expected to be generated from the above. This will free up sufficient numbering resources for future use.
- With the freeing up of sufficient numbering resources, more number of connections can be added in future which will be beneficial to the mobile customers at large.
Context : The nation is celebrating the Constitution Day, also known as Samvidhan Diwas on 26th November to commemorate the adoption of the Constitution of India.
- The Constitution Day is observed annually on November 26 to mark the anniversary of the adoption of Indian Constitution on November 26, 1949 by the Constituent Assembly of India, which came into effect on 26 January 1950.
- The Government of India declared 26 November as Constitution Day in 2015 by a gazette notification.
- The year of 2015 was the 125th birth anniversary of Ambedkar, who played a key role in the drafting of the constitution. Previously this day was celebrated as National Law Day.
- Article 394 of the Constitution states that Articles 5, 6, 7, 8, 9, 60, 324, 367, 379 and 394 came into force since the adoption of the Constitution on 26th November 1949 and the rest of the provisions on 26th January 1950.
7. NATIONAL PORTAL FOR TRANSGENDER PERSONS
Context: Union Minister for Social Justice & Empowerment launched a ‘National Portal for Transgender Persons’.
- This National Portal for Transgender Persons has been developed within 2 months of Notification of Transgender Persons (Protection of Rights) Rules, 2020 on 29 September, 2020.
- This Portal would help a transgender person in applying for a Certificate and Identity card digitally from anywhere in the country.
- The most important benefit is that it helps the transgender person to get the I-Card without any physical interface and without having to visit any office. Through the Portal, they can monitor the status of their application that ensures transparency in the process.
- Getting Transgender Certificate and Identity Cards as per their self-perceived identity is an important provision of The Transgender Persons (Protection of Rights) Act, 2019.
Context: Prime Minister inaugurated the virtual 3rd Global Renewable Energy Investment Meeting and Expo (RE-Invest 2020).
- The summit is organised by the Ministry of New and Renewable Energy and will be held from 26 – 28 November 2020.
- The theme for RE-Invest 2020 is ‘Innovations for Sustainable Energy Transition’.
- It will feature a 3-day conference on renewables and future energy choices, and an exhibition of manufacturers, developers, investors and innovators.
- It aims to build upon the success of the first two editions held in 2015 and 2018 and provide an international forum for investment promotion in renewable energy.