Daily Prelims Notes 7 October 2020

October 7, 2020
Posted by: OptimizeIAS Team
Category: DPN

No Comments

Table Of Contents

1. MONETARY POLICY COMMITTEE

Subject: Economy

Context :

Government nominates Ashima Goyal, Jayanth Verma, Shashank Bhide as new members of MPC

Concept:

Monetary Policy Committee (MPC)

The Monetary Policy Committee (MPC) is a committee of the RBI, which is entrusted with the task of fixing the benchmark policy interest rate (repo rate) to contain inflation within the specified target level.
The RBI Act, 1934 was amended by Finance Act (India), 2016 to constitute MPC to bring more transparency and accountability in fixing India’s Monetary Policy.
The policy is published after every meeting with each member explaining his opinions.
The committee is answerable to the Government of India if the inflation exceeds the range prescribed for three consecutive months.
Suggestions for setting up a Monetary policy committee is not new and goes back to 2002 when YV Reddy committee proposed to establish an MPC, then Tarapore committee in 2006, Percy Mistry committee in 2007, Raghuram Rajan committee in 2009 and then Urjit Patel Committee in 2013.

Composition and Working

The committee comprises six members – three officials of the RBI and three external members nominated by the Government of India.
The meetings of the Monetary Policy Committee are held at least 4 times a year and it publishes its decisions after each such meeting.
The Governor of RBI is the chairperson ex officio of the committee.
Decisions are taken by a majority with the Governor having the casting vote in case of a tie.
They need to observe a “silent period” seven days before and after the rate decision for “utmost confidentiality”.

Instruments of monetary policy are of two types:

Quantitative Instruments: General or indirect (Cash Reserve Ratio, Statutory Liquidity Ratio, Open Market Operations, Bank Rate, Repo Rate, Reverse Repo Rate, Marginal standing facility and Liquidity Adjustment Facility (LAF))
Qualitative Instruments: Selective or direct (change in the margin money, direct action, moral suasion)

2. MSME Prerana

Subject: Economy

Context :

Finance Minister Nirmala Sitharaman launched ‘MSME Prerana’, an online business mentoring programme for MSMEs by state-run Indian Bank
Concept:

Objective : The programme, to be made available in local languages, is aimed at empowering entrepreneurs through skill development and capacity building workshops through Indian bank branches.
The initiative is in collaboration with Poornatha & Co, a firm that designs entrepreneurial development programs in vernacular languages using online web-based interactive sessions and case studies.
Spread over 12 sessions, the program enables MSME entrepreneurs to acquire expertise in handling finance and managerial skills, capacity to handle crises in business, understand the dynamics of credit rating and risk management. The first two programs will be in Tamil for the Coimbatore clusters of Indian Bank. It will then be scaled up across the country in Hindi, Telugu, Kannada, Bengali and Gujarati.

ABOUT MSME’s:

Government schemes to promote MSMEs

Udyami Mitra Portal: launched by SIDBI to improve accessibility of credit and handholding services to MSMEs
MSME Sambandh: To monitor the implementation of the public procurement from MSMEs by Central Public Sector Enterprises.
MSME Samadhaan-MSME Delayed Payment Portal –– will empower Micro and Small entrepreneurs across the country to directly register their cases relating to delayed payments by Central Ministries / Departments / CPSEs / State Governments.
Digital MSME Scheme: It involves usage of Cloud Computing where MSMEs use the internet to access common as well as tailor-made IT infrastructure
Prime Minister Employment Generation Programme: It is a credit linked subsidy program under Ministry of MSME.
Revamped Scheme of Fund for Regeneration Of Traditional Industries (SFURTI) : organizes traditional industries and artisans into clusters and make them competitive by enhancing their marketability & equipping them with improved skills.
A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE) : creates new jobs & reduce unemployment, promotes entrepreneurship culture, facilitates innovative business solution etc.

3. WTO DISPUTE SETTLEMENT

Subject: Economy

Context:

India has said that China’s complaint at the World Trade Organisation (WTO) against the country’s foreign direct investment (FDI) policy and banning of apps such as TikTok doesn’t hold merit as no global laws were violated and instead Beijing should reflect on its own transparency record. However china hasn’t filed a formal compliant against India yet.

Concept:

WTO is an international body that also deals in Dispute Settlements.
The member country will approach the WTO’s dispute settlement body when a country fails to comply with WTO rules.
All the members are encouraged to settle the disputes through consultation or a panel if the consultation fails.
The constituted panel will circulate the verdict of the dispute settlement amongst WTO members who can decide to reject the ruling.
If the ruling is approved, the member country that violated the rules must change rules in line with the WTO Agreement.
In the case of failure to do so, the complaining country and the violating country may determine a mutually-acceptable compensation, failing which, the complaining country may retaliate suitably.

WTO’s Appellate Body

Appeals against the orders of DSB is taken to WTO Appellate Body.
The Appellate Body, set up in 1995, is a standing committee of seven members that presides over appeals against judgments passed in trade-related disputes brought by WTO members.
Countries involved in a dispute over measures purported to break a WTO agreement or obligation can approach the Appellate Body if they feel the report of the panel set up to examine the issue needs to be reviewed on points of law.
However, existing evidence is not re-examined but legal interpretations are reviewed.
The Appellate Body can uphold, modify, or reverse the legal findings of the panel that heard the dispute. Countries on either or both sides of the dispute can appeal.
The Appellate Body has so far issued 152 reports. The reports, once adopted by the WTO’s dispute settlement body, are final and binding on the parties.

4. MEDICAL COUNCIL

Subject: Government organisation

Context:

The Medical Council of India (MCI) has informed the Madras High Court that it has recommended a uniform procedure to be followed by all States for the execution of bonds by medical students.

Concept:

Medical Council of India (MCI) is a statutory body for establishing uniform and high standards of medical education in India.
It was first established in 1934 under the Indian Medical Council Act, 1933. As per recommendation given by NITI Aayog, Government took measures to replace MCI with National Medical Commission (NMC) in 2019.

NATIONAL MEDICAL COMMISSION

NMC will subsume the Medical Council of India and will regulate medical education and practice in India.
Functions of the NMC include: (i) laying down policies for regulating medical institutions and medical professionals, (ii) assessing the requirements of human resources and infrastructure in healthcare, (iii) ensuring compliance by the State Medical Councils with the regulations made under the Bill, and (iv) framing guidelines for determination of fee for up to 50% of the seats in the private medical institutions.
The NMC will consist of 25 members, including: (i) Director Generals of the Directorate General of Health Services and the Indian Council of Medical Research, (ii) Director of any of the AIIMS, (iii) five members (part-time) to be elected by the registered medical practitioners, and (iv) six members appointed on rotational basis from amongst the nominees of the states in the Medical Advisory Council.
Four autonomous boards were set up under the supervision of the NMC. Each board will consist of a President and four members (of which two members will be part-time), appointed by the central government (on the recommendation of a search committee).
These bodies are:
- The Under-Graduate Medical Education Board (UGMEB) and the Post-Graduate Medical Education Board (PGMEB): These two bodies will be responsible for formulating standards, curriculum, guidelines for medical education, and granting recognition to medical qualifications at the under-graduate and post-graduate levels respectively.
- The Medical Assessment and Rating Board: The Board will have the power to levy monetary penalties on institutions which fail to maintain the minimum standards as laid down by the UGMEB and the PGMEB. It will also grant permissions for establishing new medical colleges, starting postgraduate courses, and increasing the number of seats in a medical college.
- The Ethics and Medical Registration Board: This Board will maintain a National Register of all the licensed medical practitioners in the country, and also regulate professional and medical conduct. Only those included in the Register will be allowed to practice as doctors. The Board will also maintain a register of all licensed community health providers in the country.

5. MINIMUM SUPPORT PRICE

Subject: Economy(agri)

Context:

Union Finance Minister Nirmala Sitharaman has reiterated that the minimum support price (MSP) for crops will continue and will not be withdrawn.

Concept:

Fixation of MSP

The MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
Factors taken into consideration for fixing MSP include:
- Demand and supply;
- Cost of production (A2 + FL method)
- Price trends in the market, both domestic and international;
- Inter-crop price parity;
- Terms of trade between agriculture and non-agriculture;
- A minimum of 50% as the margin over cost of production; and
- Likely implications of MSP on consumers of that product.
The Commission also makes visits to states for on-the-spot assessment of the various constraints that farmers face in marketing their produce, or even raising the productivity levels of their crops.
Based on all these inputs, the Commission then finalizes its recommendations/reports, which are then submitted to the government.
The government, in turn, circulates the CACP reports to state governments and concerned Central Ministries for their comments.
After receiving the feed-back from them, the Cabinet Committee on Economic Affairs (CCEA) of the Union government takes a final decision on the level of MSPs and other recommendations made by the CACP.
Procurement: The Food Corporation of India (FCI), the nodal central agency of the Government of India, along with other State Agencies undertakes procurement of crops.
Government fixes MSP for 22 mandated crops which are paddy, jowar, bajra, maize, ragi, arhar, moong, urad, groundnut-in-shell, soyabean, sunflower, sesamum, nigerseed, cotton, wheat, barley, gram, masur (lentil), rapeseed / mustard, safflower, jute and copra. In addition, MSP of Toria and de-husked coconut are also fixed on the basis of the MSPs of rapeseed/mustard and copra respectively

6. HIV

Subject: Science & tech

Context :

The prevalence of HIV/AIDS among antenatal women has dropped from 0.27% to 0.18% in Tamil Nadu, according to the findings of the recent HIV Sentinel Surveillance 2019.

Concept :

HIV attacks CD4, a type of White Blood Cell (T cells)in the body’s immune system. T cells are those cells that move around the body detecting anomalies and infections in cells.
After entering body, HIV multiplies itself and destroys CD4 cells, thus severely damaging the human immune system. Once this virus enters the body, it can never be removed.
CD4 count of a person infected with HIV reduces significantly. In a healthy body, CD4 count is between 500- 1600, but in an infected body, it can go as low as 200.
Weak immune system makes a person prone to opportunistic infections and cancer. It becomes difficult for a person infected with this virus to recover from even a minor injury or sickness.
By receiving treatment, severe form of HIV can be prevented.

Transmission

HIV is transmitted from person to person through bodily fluids including blood, semen, vaginal secretions, anal fluids and breast milk.
To transmit HIV, bodily fluids must contain enough of the virus. A person with ‘Undetectable HIV’ cannot transfer HIV to another person even after transfer of fluids.
‘Undetectable HIV’ is when the amount of HIV in the body is so low that a blood test cannot detect it. Treatment can make this possible. But regular monitoring of the same through blood tests is also required.

Symptoms

Around 80% of people infected with HIV develop a set of symptoms known as Acute Retroviral Syndrome, around 2-6 weeks after the virus enters into body.
The early symptoms include fever, chills, joint pains, muscle aches, sore throat, sweats particularly at night, enlarged glands, a red rash, tiredness, weakness, unintentional weight loss and thrush.
A person can carry HIV even without experiencing any symptoms for a long time. During this time, the virus continues to develop and causes immune system and organ damage.

Treatment

Anti-Retroviral Therapy:

It is a combination of daily medications that stop the virus from reproducing.

The therapy helps in protecting CD4 cells thus keeping the immune system strong enough to fight off the disease.

It, besides reducing the risk of transmission of HIV, also helps in stopping its progression to AIDS (a spectrum of conditions caused by infection due to HIV).

Stem Cell Transplant:

Under this, an infected person is treated with stem cell transplant from donors carrying a genetic mutation that prevents expression of an HIV receptor CCR5.

CCR5 is the most commonly used receptor by HIV-1. People who have mutated copies of CCR5 are resistant to HIV-1 virus strain.

7. PURCHASING MANAGER INDEX

Subject: Economy

Context:

The pace of contraction in services sector activity eased considerably in September after the government lifted some COVID-19 restrictions, but demand continued to shrink, prompting firms to cut more jobs, a business survey(PMI) showed recently.

Concept:

PMI is an indicator of business activity- in the manufacturing and services sectors.
Calculation of PMI
- It is a survey-based measure that asks the respondents about changes in their perception about key business variables as compared with the previous month.
- It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.
The latest composite PMI decreased to 49.8 in September 2019 from 52.6 in August 2019.
The PMI is a number from 0 to 100.
PMI above 50 represents an expansion when compared to the previous month;
PMI under 50 represents a contraction, and A reading at 50 indicates no change.
Purpose: To provide information about current and future business conditions to company decision-makers, analysts, and investors. As the official data on industrial output, manufacturing and GDP growth comes much later, PMI helps to make informed decisions at an earlier stage

8. RIVER BOARDS

Subject: Polity

Context:

The Centre will determine the jurisdictions of the Krishna and Godavari river management boards (KRMB and GRMB), Union Water Resources Minister Gajendra Singh Shekhawat said recently.

Concept :

Inter-State Water Disputes

Article 262 of the Constitution provides for the adjudication of inter state water disputes.
Under this, Parliament may by law provide for the adjudication of any dispute or complaint with respect to the use, distribution and control of waters of any inter-state river and river valley.
Parliament may also provide that neither the Supreme Court nor any other court is to exercise jurisdiction in respect of any such dispute or complaint.
The Parliament has enacted the two laws, the River Boards Act (1956) and the Inter-State Water Disputes Act (1956).
The River Boards Act provides for the establishment of river boards by the Central government for the regulation and development of inter-state river and river valleys.
A River Board is established on the request of state governments concerned to advise them.
The Inter-State Water Disputes Act empowers the Central government to set up an ad hoc tribunal for the adjudication of a dispute between two or more states in relation to the waters of an inter-state river or river valley.
The decision of the tribunal is final and binding on the parties to the dispute.
Neither the Supreme Court nor any other court is to have jurisdiction in respect of any water dispute which may be referred to such a tribunal under this Act.

Godavari River

Source: Godavari river rises from Trimbakeshwar near Nasik in Maharashtra and flows for a length of about 1465 km before out falling into the Bay of Bengal.
Drainage Basin: The Godavari basin extends over states of Maharashtra, Telangana, Andhra Pradesh, Chhattisgarh and Odisha in addition to smaller parts in Madhya Pradesh, Karnataka and Union territory of Puducherry.
Tributaries: Pravara, Purna, Manjra, Penganga, Wardha, Wainganga, Pranhita (combined flow of Wainganga, Penganga, Wardha), Indravati, Maner and the Sabri

Krishna River

Source: It originates near Mahabaleshwar (Satara) in Maharashtra. It is the second biggest river in peninsular India after the Godavari River.
Drainage: It runs from four states Maharashtra (303 km), North Karnataka (480 km) and the rest of its 1300 km journey in Telangana and Andhra Pradesh before it empties into the Bay of Bengal.
Tributaries: Tungabhadra, Mallaprabha, Koyna, Bhima, Ghataprabha, Yerla, Warna, Dindi, Musi and Dudhganga.

9. Black holes

Subject: Science and tech

Context:

Royal Swedish Academy of Sciences decided to award one half of the 2020 Nobel Prize in physics to Roger Penrose and the other half jointly to Reinhard Genzel and Andrea Ghez for furthering the understanding of black holes, the most “enigmatic” objects in the universe.

Concept:

A black hole is formed when stars collapse and can be defined as a space in the universe with an escape velocity so strong that even light cannot escape it.
Escape velocity is the speed at which an object must travel to override a planet or an object’s gravitational force.
Since light cannot get out, black holes are invisible and can only be tracked with the help of a space telescope or other special tools.
And the reason light cannot escape is mainly that the gravity inside a black hole is very strong as a result of a lot of matter being squeezed into a small space.
It acts like an ideal black body reflecting no light. It continues to grow, by absorbing mass from its surroundings.

Black hole merger

Gravitational waves, postulated by Albert Einstein 100 years ago but discovered only in 2015 do not produce any sound on their own.
These are just ripples created in the fabric of space-time by moving celestial objects just like a moving boat produces ripples in water.
But when converted into audio signals, these can produce signature sounds that can reveal the origin of the gravitational waves.
The gravitational wave detected on September 14, 2015, is now known to have been produced by the merger of two black holes about 1.3 billion years ago.
Scientists already knew the kind of sound that gravitational waves emanating from such events were likely to produce.
As two such dense and massive objects, black holes or neutron stars, are about to merge, they start rotating around each other at almost the speed of light. The merger takes place within a fraction of a second.
The gravitational waves released in this last bit, when converted into audio signals, produce sound that is within audible range of human beings.

LIGO

The LIGO Scientific Collaboration (LSC) is a group of scientists focused on the direct detection of gravitational waves, using them to explore the fundamental physics of gravity, and developing the emerging field of gravitational wave science as a tool of astronomical discovery.
The LSC works toward this goal through research on, and development of techniques for, gravitational wave detection; and the development, commissioning and exploitation of gravitational wave detectors.
The project operates three gravitational-wave (GW) detectors. Two are at Hanford, Washington, north-western US, and one is at Livingston in Louisiana, south-eastern US.
The proposed LIGO India project aims to move one advanced LIGO detector from Hanford to India.

VIRGO

Virgo is a giant laser interferometer designed to detect gravitational waves.
Virgo has been designed and built by a collaboration of the French Centre National de la Recherche Scientifique (CNRS) and the Italian Istituto Nazionale di Fisica Nucleare (INFN)
It is now operated and improved in Cascina, a small town near Pisa on the site of the European Gravitational Observatory (EGO), by an international collaboration of scientists from France, Italy, the Netherlands, Poland, and Hungary.

Working:

It consists of two 3-kilometre-long arms, which house the various machinery required to form a laser interferometer.
A beam-splitter divides a laser beam into two equal components, which are subsequently sent into the two interferometer arms.
In each arm, a two-mirror Fabry-Perot resonant cavity extends the optical length. This is because of multiple reflections that occur within each cavity and which consequently amplify the tiny distance variation caused by a gravitational wave.
The two beams of laser light that return from the two arms are recombined out of phase so that, in principle, no light reaches the so-called ‘dark fringe’ of the detector. Any variation caused by an alteration in the distance between the mirrors, produces a very small shift in phase between the beams and, thus, a variation of the intensity of the light, which is proportional to the wave’s amplitude.