Daily Prelims Notes 6 May 2021

May 6, 2021
Posted by: OptimizeIAS Team
Category: DPN

Daily Prelims Notes

6 May 2021

Table Of Contents

Subject: Polity

Context: Recently, the Supreme Court has quashed the Maharashtra law granting reservation to the Maratha community in admissions and government jobs in the state.

Concept:

It made it clear in its judgment that people from the Maratha community cannot be declared as educationally and socially backward community to bring them within the reserved category.
The court refused to refer the 1992 Mandal judgment (Sawhney judgment), setting a 50 per cent cap on reservation, to a larger bench for reconsideration.
The court ruled that the state government had not made any extraordinary circumstance to grant such reservation.
The bench also upheld the 102nd constitutional amendment saying it does not violate the basic structure of the constitution.
The President (that is the Central government) alone, to the exclusion of all other authorities, is empowered to identify SEBCs and include them in a list to be published under Article 342A (1), which shall be deemed to include SEBCs in relation to each State and Union Territory for the purposes of the Constitution,
States could only make suggestions to the President or the statutory commissions concerned for inclusion, exclusion or modification of castes and communities to be included in the List.
The Central List is to be the “only list” for the SEBC.

What powers 102nd Amendment gives?

The amendment that gave powers to the President to notify socially and educationally backward classes (SEBC).
The 102nd amendment deals with the constitutional status of the National Commission for Backward Classes.
The power of the Parliament to change the SEBC list was not to take away the powers of the state, but was fulfilling a long-held demand for constitutional status to the National Commission on Backward Classes (NCBC).
It allows the commission to appropriately examine implementation of reservation given to OBCs in services and education.

2. AFFIRMATIVE ACTION

Subject: Polity

Context: Need constant review of schemes for SC, ST students: Supreme Court

Concept:

Affirmative action refers to a set of policies that support members of disadvantaged groups that have previously suffered discrimination in any form.
The nature of affirmative action policies varies from region to region and exists on a spectrum from a hard quota to merely targeting encouragement for increased participation.
Some countries use a quota system, whereby a certain percentage of government jobs, political positions, and school vacancies must be reserved for members of a certain group; an example of this is the reservation system in India.
Historically and internationally, support for affirmative action has sought to achieve goals such as bridging inequalities in employment and pay, increasing access to education, promoting diversity, and redressing apparent past wrongs, harms, or hindrances.

Affirmative actions in India can be categorized into 3 main dimensions, which are given below.

Appointment and promotion in government services.
Reservations in public education institutions.
Reservation of seats in Central and State legislatures.

3. EUA FOR CASIRIVIMAB & IMDEVIMAB

Subject: Science & tech

Context: India approves Roche/ Regeneron antibody cocktail to treat COVID-19.

Concept:

The EUA will now enable Roche to import globally manufactured product batches to India that will be marketed as well as distributed in India through a strategic partnership with Cipla Ltd.
The antibody cocktail is to be administered to adults and paediatric patients (12 years or older, weighing at least 40 kg), who are confirmed to be infected with the novel coronavirus.
The treatment will be complementary to the ongoing vaccination drive and support the fight against the pandemic in India.
The approval is based on data filed for the EUA in the US and scientific opinion of Committee for Medicinal Products for Human Use (CHMP) in European Union.

Casirivimab and Imdevimab

Casirivimab and Imdevimab are human immunoglobulin G-1 (IgG1) monoclonal antibodies produced by recombinant DNA technology.
The antibody cocktail (Casirivimab and Imdevimab) is seen useful for high-risk patients before their condition worsens.
Casirivimaband imdevimab significantly shortened the duration of symptoms by four days during the clinical trials.
Monoclonal antibodies are laboratory-made proteins that mimic the immune system’s ability to fight off harmful pathogens such as viruses.
Casirivimab and imdevimab are monoclonal antibodies that are specifically directed against the spike protein of SARS-CoV-2.
They are designed to block the virus’ attachment and entry into human cells.
It should be refrigerated unopened vials at 2°C to 8°C (36°F to 46°F) in the individual original carton to protect from light.

4. ONE NATION ONE RATION CARD

Subject : Governance

Context : Year later, One Nation, One Ration off to slow start.

Concept :

One Nation One Ration Card (RC) will ensure all beneficiaries especially migrants can access PDS across the nation from any PDS shop of their own choice.
Benefits: No poor person is deprived of getting subsidized foodgrains under the food security scheme when they shift from one place to another.
It also aims to remove the chance of anyone holding more than one ration card to avail benefits from different states.
Significance: This will provide freedom to the beneficiaries as they will not be tied to any one PDS shop and reduce their dependence on shop owners and curtail instances of corruption.

Standard format of ‘one nation, one ration card’:

A standard format for ration card has been prepared after taking into account the format used by different states.
For national portability, the state governments have been asked to issue the ration card in bi-lingual format, wherein besides the local language, the other language could be Hindi or English.
The states have also been told to have a 10-digit standard ration card number, wherein first two digits will be state code and the next two digits will be running ration card numbers.
Besides this, a set of another two digits will be appended with ration card number to create unique member IDs for each member of the household in a ration card.

5. CORPORATE SOCIAL RESPONSIBILITY

Subject : Governance

Context : Spending for Covid-care infrastructure an eligible CSR activity.

Concept :

Corporate Social Responsibility

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 activities include:

Eradicating extreme hunger and poverty,
Promotion of education, gender equality and empowering women,
Combating Human Immunodeficiency Virus, Acquired Immune Deficiency Syndrome and other diseases,
Ensuring environmental sustainability;
Contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women etc.

6. STRATEGIC DISINVESTMENT

Context : Cabinet nods strategic disinvestment in IDBI Bank, Govt and LIC to sell stakes; Stock skyrockets 15%.

Concept :

The extent of respective shareholding to be divested by GoI and LIC shall be decided at the time of structuring of transaction in consultation with RBI.
Government of India (GoI) and LIC together own more than 94% of equity of IDBI Bank (GoI 45.48%, LIC 49.24%). LIC is currently the promoter of IDBI Bank with Management Control and GoI is the co-promoter.
LIC’s Board has passed a resolution to the effect that LIC may reduce its shareholding in IDBI Bank Ltd. through divesting its stake along with strategic stake sale envisaged by the Govt. with an intent to relinquish management control and by taking into consideration price, market outlook, statutory stipulation and interest of policy holders.
It is expected that strategic buyer will infuse funds, new technology and best management practices for optimal development of business potential and growth of IDBI Bank Ltd. and shall generate more business without any dependence on LIC and Government assistance/funds.
Resources through strategic disinvestment of Govt. equity from the transaction would be used to finance developmental programmes of the Government benefiting the citizens.

Strategic Disinvestments

Disinvestment means sale or liquidation of assets by the government, usually Central and state public sector enterprises, projects, or other fixed assets.
The government undertakes disinvestment to reduce the fiscal burden on the exchequer, or to raise money for meeting specific needs, such as to bridge the revenue shortfall from other regular sources.
Strategic disinvestment is the transfer of the ownership and control of a public sector entity to some other entity (mostly to a private sector entity).
Unlike the simple disinvestment, strategic sale implies a kind of privatization.
The disinvestment commission defines strategic sale as the sale of a substantial portion of the Government shareholding of a central public sector enterprises (CPSE) of upto 50%, or such higher percentage as the competent authority may determine, along with transfer of management control.
Strategic disinvestment in India has been guided by the basic economic principle that the government should not be in the business to engage itself in manufacturing/producing goods and services in sectors where competitive markets have come of age.
The economic potential of such entities may be better discovered in the hands of the strategic investors due to various factors, e.g. infusion of capital, technology up-gradation and efficient management practices etc.

7. RBI MEASURES TO TACKLE COVID-19 BURDEN

Subject : Economics

Context: The RBI Governor Shaktikanta Das announced a series of measures to support the nation’s fight against the second wave of COVID-19 infections.

Concept :

Term Liquidity Facility
Term liquidity facility of Rs. 50,000 crore with tenure of up to 3 years, at repo rate, to ease access to emergency health services, for ramping up COVID-related health infrastructure & services.
Financial institutions with short liquidity positions could borrow from BOT via repurchase transactions using an extended list of eligible securities.
This term liquidity facility aims to provide funding for financial institutions in an efficient and effective manner so as to help maintain stability in the financial system.
Special Long Term Repo Operations for Small Finance Banks: In order to provide further support to micro, small and other unorganized sector entities, 3-year repo operations of Rs. 10,000 crore at repo rate, for fresh lending up to Rs 10 lakh per borrower; facility is available up to 31 October, 2021.
Lending by Small Finance Banks (SFBs) to MFIs for on-lending to be classified as priority sector lending: In view of fresh challenges, SFBs are now permitted to regard fresh on-lending to MFIs with asset size up to Rs. 500 crore, as priority sector lending. This facility will be available up to 31 March, 2022.
Credit flow to MSME Entrepreneurs: To further incentivize inclusion of unbanked MSMEs into banking system, exemption provided in February, 2021 wherein scheduled banks were allowed to deduct credit given to new MSME borrowers from Net Time & Demand Liabilities for calculation of CRR, is now extended to December 31, 2021.

8. EXPORT OF ORGANIC MILLETS

Subject : Economy

Context : In a major boost to organic products exports from the country, first consignment of millets grown in Himalayas from snow-melt water of Ganges in Dev Bhoomi (Land of the God), Uttarakhand would be exported to Denmark.

Concept :

APEDA, in collaboration with Uttarakhand Agriculture Produce Marketing Board (UKAPMB) & Just Organik, an exporter, has sourced & processed ragi (finger millet), and jhingora (barnyard millet) from farmers in Uttarakhand for exports, which meets the organic certification standards of the European Union.
Millets are gaining a lot of popularity globally because of high nutritive values and being gluten free also.

Organic Exports

Oil cake meal is a major commodity of the organic product exports from the country followed by oil seeds, fruit pulps and purees, cereals & millets, spices, tea, medicinal plant products etc.
At present, organic products are exported provided they are produced, processed, packed and labelled as per the requirements of the National Programme for Organic Production (NPOP).
The NPOP has been implemented by APEDA since its inception in 2001 as notified under the Foreign Trade (Development and Regulations) Act, 1992.
NPOP has also been recognized by the Food Safety Standard Authority of India (FSSAI) for trade of organic products in the domestic market. Organic products covered under the bilateral agreement with NPOP need not to be recertified for import in India.

9. STRESS RESOLUTION FRAMEWORK 2.0

Subject : Economy

Context : RBI has announced following set of measures to relieve stress faced by most vulnerable categories of borrowers – namely individuals, borrowers and MSMEs.

Concept :

Individuals, borrowers and MSMEs with aggregate exposure up to Rs. 25 crore, who have not availed restructuring under any previous frameworks, who were classified as standard on 31 March, 2021, will be eligible to be considered under Resolution Framework 2.0.
Restructuring under new framework can be invoked till September 30, 2021 and will have to be implemented within 90 days after invocation.
For individuals and small businesses who have availed restructuring of loans under Resolution Framework 1.0, where moratorium of less than 2 years was permitted, lending institutions can now increase the period and/or extend residual tenure up to a total period of 2 years.
In respect of small businesses and MSMEs restructured earlier, lending institutions are now permitted to review working capital sanction limits, as a one-time measure.

10. INDEX OF ECONOMIC FREEDOM

Subject : International Reports

Context : Recently, the Heritage Foundation has released the 2021 Index of Economic Freedom.

Concept :

Index of Economic Freedom

It is an annual guide published to measure the progress made in advancing economic freedom which it claims brings greater prosperity.
The index ranks 12 indicators from property rights to financial freedom under four categories i.e. rule of law, size of government, regulatory efficiency and open markets.
It believes that the ideals of economic freedom are strongly associated with healthier societies, cleaner environments, greater per capita wealth, human development, democracy, and poverty elimination.
The 2021 edition measures economic freedom only in independent countries where governments exercise sovereign control of economic policies.
It relies primarily on the World Trade Organization’s annual World Tariff Profiles for trade-weighted average tariff rates in order to reflect the most authoritative and consistent tariff information.

Key Highlights of 2021 Index of Economic Freedom

184 countries were covered in the study this time and the period of study is July 2019 to June 2020.
The Heritage Foundation decided to exclude Hong Kong from its rankings for the first time ever.
Singapore topped the global ranking for the second year in a row in the latest Economic Freedom Index.
The global top five are New Zealand in second place with 83.9 points, Australia in third (82.4 points), Switzerland in fourth with 81.9 points and Ireland (81.4 points).
The Asia-Pacific nations generally scored lower than the world average in seven of 12 indicators such as property rights, judicial effectiveness, government integrity, monetary freedom, trade freedom, investment freedom and financial freedom.

India and 2021 Index of Economic Freedom

India came in around the middle of the pack among Asia-Pacific countries ranking 26th out of 40 countries, scoring 56.5 points.
Globally, the Foundation rates India’s economy as the 121st freest.

11. CT SCAN

Subject : Science & tech

Context : CT scan is like 5-10 x-rays, not 300-400: Docs’ body refutes Guleria’s ‘unscientific’ comments

Concept :

CT scan

It is also known as computed tomography scan.
It is a medical imaging technique used in radiology to get detailed images of the body noninvasively for diagnostic purposes.
CT scanners use a rotating x-ray tube and a row of detectors placed in the gantry to measure X-ray attenuations by different tissues inside the body.
The multiple X-ray measurements taken from different angles are then processed on a computer using reconstruction algorithms to produce tomographic (cross-sectional) images (virtual “slices”) of a body.
The use of ionizing radiations sometimes restricts its use owing to its adverse effects.