Daily Prelims Notes 8 April 2021
- April 8, 2021
- Posted by: admin1
- Category: DPN
Daily Prelims Notes
8 April 2021
Table Of Contents
- MONETARY POLICY COMMITTEE
- PERMANENT COURT OF ARBITRATION
- NET ZERO EMISSIONS
- PLI FOR WHITE GOODS, SOLAR MODULES
- LOK ADALATS
- RED SEA
Context: Reserve Bank of India keeps the repo rate unchanged for the 5th consecutive monetary policy committee.
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, RaghuramRajan 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)
Subject : Environment
- Kavu is the traditional name given for sacred groves across the Malabar Coast in Kerala, South India.
- Kavus are notable for Theyyam, the centuries-old ritual dance.
- A SarpaKavu (meaning Abode of Snakes) is a traditional natural sacred space seen near traditional homes in Kerala state of South India.
- The site is believed to be inhabited by snakes, and the area usually contains a representation of Naga Raja (King of the Snakes) and other Naga Devatas (snake deities), where offerings and rites are performed during special ceremonies.
- SarpaKavus even help in soil and water conservation besides preserving its rich biological wealth.
- The ponds and streams adjoining the groves are perennial water sources. These are the last resorts to many of the animals and birds for their water requirements, especially during summer.
- Sacred groves also enrich the soil through its rich litter composition. The nutrients generated thus are not only recycled within the sacred grove ecosystem but also find their way into the adjoining agroeco systems.
Subject : Economy
Context : Recently, the governor of RBI has announced a new programme called Government Securities Acquisition Programme (G-SAP).
Government Securities Acquisition Programme (G-SAP)
- Under G-SAP, the RBI will purchase government securities worth Rs 1 lakh crore in the first quarter of FY22.
- It is a structured purchase program which will definitely calm investors’ nerves and help market participants to bid better in scheduled auctions and reduce volatility in bond prices.
Significance of G-SAP
- The G-SAP aims to provide more comfort to the bond market in the backdrop of the government’s elevated borrowing for this year, which the RBI has to ensure goes through without causing disruption.
- It will provide certainty to the bond market participants with regard to RBI’s commitment of support to the bond market in FY22.
- The market participants have always wanted to know the RBI’s Open Market Operations (OMO) purchase calendar, and the RBI has now provided that to the market through G-SAP.
- It will help reduce the spread between the repo rate and the 10-year government bond yield which will help to reduce the aggregate cost of borrowing for the Centre and states in FY22.
Subject : International Organisations
Context :The government had explained to SC that India was bound by the award of the arbitral tribunal formed under the United Nations Convention on the Law of the Sea (UNCLOS) in Italian mariners case.
Permanent Court of Arbitration
- Established in: 1899.
- HQ: Hague, Netherlands.
- It is an intergovernmental organization dedicated to serve the international community in the field of dispute resolution and to facilitate arbitration and other forms of dispute resolution between States.
- The PCA has a three-part organizational structure consisting of:
Administrative Council- to oversee its policies and budgets,
Members of the Court- a panel of independent potential arbitrators, and
International Bureau- its Secretariat, headed by the Secretary-General.
- It has Financial Assistance Fund which aims at helping developing countries meet part of the costs involved in international arbitration or other means of dispute settlement offered by the PCA.
Context: US President’s Climate Envoy is in India. One point of discussion could be the net-zero goal for 2050, which the US wants India to be on board on.
- ‘Net zero emissions’ refers to achieving an overall balance between greenhouse gas emissions produced and greenhouse gas emissions taken out of the atmosphere.
- First, human-caused emissions (like those from fossil-fueled vehicles and factories) should be reduced as close to zero as possible. Second, any remaining GHGs should be balanced with an equivalent amount of carbon removal, for example by restoring forests.
- The time frame for reaching net-zero emissions differs significantly if one is referring to CO2 alone, or referring to all major GHGs (including methane, nitrous oxide, and HFCs).
- For non-CO2 emissions, the net-zero date is later because some of these emissions — such as methane from agricultural sources — are somewhat more difficult to phase out.
- In scenarios that limit warming to 1.5 degrees C, carbon dioxide (CO2) reaches net-zero on average by 2050. Total GHG emissions reach net-zero between 2063 and 2068.
- As of June 2020, twenty countries and regions have adopted net-zero targets. This list only includes countries that adopted a net-zero target in law or another policy document.
- The Kingdom of Bhutan is already carbon-negative, i.e. absorbs more CO2 than it emits.
- India’s per capita CO2 emissions – at 1.8 tonnes per person in 2015 – are around a ninth of those in the USA and around a third of the global average of 4.8 tonnes per person.
- However, overall, India is now the planet’s third-largest emitter of CO2, behind China and the USA.
Context: FCAT abolition will make releasing films even more tedious: Filmmakers
Film Certification Appellate Tribunal
- The Film Certification Appellate Tribunal (FCAT) is a statutory body constituted under the Ministry of Information and Broadcasting as per Section 5(D) of the Cinematograph Act, 1952.
- The FCAT hears appeals filed by applicants aggrieved by any order of the Central Board of Film Certification (CBFC).
- The FCAT was established in 1991 and it is headquartered in New Delhi. Generally, an appeal against a CBFC order to the FCAT would be followed by a second review of the film by the Censor Board.
- An aggrieved person has to file an appeal within 30 days from the date of the CBFC order.
- An appeal against a decision of the FCAT can be made to the head of the Ministry of Information and Broadcasting or through the country’s legal system.
- The FCAT is headed by a Chairman who is generally a retired Supreme Court judge. He/she is assisted by other members of the Tribunal.
Subject: Government Schemes
- The Union Cabinet approved the Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) with a budgetary outlay of Rs. 6,238 crore.
- The PLI Scheme for White Goods shall extend an incentive of 4% to 6% on incremental sales of goods manufactured in India for a period of five years to companies engaged in manufacturing of Air Conditioners and LED Lights.
- An entity availing benefits under any other PLI Scheme of Govt. India will not be eligible under this scheme for the same products but the entity may take benefits under other applicable schemes of Govt. of India or schemes of State governments.
- The Scheme will be implemented as a pan India scheme and is not specific to any location, area or segment of population. A number of global and domestic companies, including a number of MSMEs are likely to benefit from the Scheme.
What are White goods ?
- A major appliance, also known as a large domestic appliance or large electric appliance is a non-portable or semi-portable machine used for routine housekeeping tasks such as cooking, washing laundry, or food preservation.
- Such appliances are sometimes collectively known as white goods, as the products were traditionally white in colour, although a variety of colours are now available.
- The Union Cabinet has approved the Ministry of New & Renewable Energy’s proposal for implementation of the Production Linked Incentive (PLI) Scheme ‘National Programme on High Efficiency Solar PV (Photo Voltic) Modules’ for achieving manufacturing capacity of Giga Watt (GW) scale in high efficiency solar PV modules with an outlay of Rs.4,500 crore.
- Solar PV manufacturers will be selected through a transparent competitive bidding process.
- PLI will be disbursed for 5 years post commissioning of solar PV manufacturing plants, on sales of high efficiency solar PV modules.
Context: For Lok Adalats, speed overrides quality .The system must look beyond swift disposal of cases and focus on just and fair outcomes.
- Lok Adalat is one of the alternative dispute redressal mechanisms, it is a forum where disputes/cases pending in the court of law or at pre-litigation stage are settled/ compromised amicably.
- The Lok Adalats are formed to fulfil the promise given by the preamble of the Indian Constitution– securing Justice – social, economic and political of every citizen of India.
- Article 39A of the Constitution provides for free legal aid to the deprived and weaker sections of the society and to promote justice on the base of equal opportunity.
- Articles 14 of the Constitution also make it compulsory for the State to guarantee equality before the law.
- Under the Legal Services Authorities Act, 1987 Lok Adalats have been given statutory status.
- The decision made by the Lok Adalats is considered to be a verdict of a civil court and is ultimate and binding on all parties.
- There is no provision for an appeal against the verdict made by Lok Adalat.
- But, they are free to initiate litigation by approaching the court of appropriate jurisdiction by filing a case by following the required procedure, in exercise of their right to litigate.
- There is no court fee payable when a matter is filed in a Lok Adalat.
- Note: If a matter pending in the court of law is referred to the Lok Adalat and is settled subsequently, the court fee originally paid in the court on the complaints/petition is also refunded back to the parties.
Nature of Cases to be Referred to Lok Adalat:
- Any case pending before any court.
- Any dispute which has not been brought before any court and is likely to be filed before the court.
- Provided that any matter relating to an offence not compoundable under the law shall not be settled in Lok Adalat.
Subject : National Organisations
Context : RBI extends fresh support of ₹50,000 cr. to NABARD, others.
- It is an apex development and specialized bank established on 12 July 1982 by an act by the parliament of India.
- Its main focus is to uplift rural India by increasing the credit flow for elevation of agriculture & rural non farm sector.
- It was established based on the recommendations of the Committee set up by the Reserve Bank of India (RBI) under the chairmanship of Shri B. shivaraman.
- It replaced the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC).
- It has been accredited with “matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India”.
- The Reserve Bank of India (RBI) recently sold its entire stakes in the National Bank for Agriculture & Rural Development (NABARD) and National Housing Bank.
- The decision to divest its entire stake was taken based on the recommendations of the second Narasimham Committee. The government now holds a 100 per cent stake in both NHB and NABARD.
Subject : Science & tech
Context : The Central government has decided to rope in the private sector to commence production of concentrated poppy straw from India’s opium crop to boost their yield of alkaloids, used for medical purposes and exported to several countries.
- Alkaloids are a group of naturally occurring chemical compounds that mostly contain basic nitrogen atoms.
- This group also includes some related compounds with neutral and even weakly acidic properties. Some synthetic compounds of similar structure are also termed alkaloids.
- In addition to carbon, hydrogen and nitrogen, alkaloids may also contain oxygen, sulphur.
- Alkaloids are produced by a large variety of organisms including bacteria, fungi, plants, and animals.
- They can be purified from crude extracts of these organisms by acid-base extraction. They have a wide range of pharmacological activities including antimalarial (e.g. quinine), antiasthma (e.g. ephedrine), anticancer etc.
- The boundary between alkaloids and other nitrogen-containing natural compounds is not clear-cut. Compounds like amino acid peptides, proteins, nucleotides, nucleic acid, amines, and antibiotics are usually not called alkaloids.
- Most contain oxygen in their molecular structure; those compounds are usually colorless crystals at ambient conditions. Oxygen-free alkaloids, such as nicotine or coniine, are typically volatile, colorless, oily liquids.
- Most have a bitter taste or are poisonous when ingested. Alkaloid production in plants appeared to have evolved in response to feeding by herbivorous animals.
- Most are weak bases.
- Because of the structural diversity of alkaloids, there is no single method of their extraction from natural raw materials.
- Most methods exploit the property of most alkaloids to be soluble in organic solvents but not in water, and the opposite tendency of their salts.
Subject : Geography
Context : Iran state TV acknowledges ship attacked in Red Sea.
- The Red Sea (Erythraean Sea) is a seawater inlet of the Indian Ocean, lying between Africa and Asia.
- The connection to the ocean is in the south through the Bab el Mandeb strait and the Gulf of Aden.
- To the north lie the Sinai Peninsula, the Gulf of Aqaba, and the Gulf of Suez (leading to the Suez Canal).
- The sea is underlain by the Red Sea Rift which is part of the Great Rift Valley.
- The six countries bordering the Red Sea are: Saudi Arabia, Yemen , Egypt , Sudan , Eritrea , Djibouti .