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Monthly DNA
20 Feb, 2020
26 Min Read
Syllabus subtopic: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.
Prelims and Mains focus: about the key features of the bill and its significance
News: The Union Cabinet chaired by the Prime Minister approved the Assisted Reproductive Technology Regulation Bill, 2020 to monitor medical procedures used to assist people to achieve pregnancy.
Background
India has one of the highest growths in the number ART centres and ART cycles performed every year. India has become one of the major centres of this global fertility industry, with reproductive medical tourism becoming a significant activity. This has also introduced a plethora of legal, ethical and social issues; yet, there is no standardisation of protocols and reporting is still very inadequate.
Key features of the Bill
Note: In the Surrogacy Regulation Bill 2020, the government is planning to restrict the maximum age of surrogates from “above the marriageable age” to 50 years.
Source: The Hindu
Syllabus subtopic: Structure, Organization and Functioning of the Executive and the Judiciary
Prelims and Mains focus: about the commission: composition and functions
News: The Union Cabinet gave its approval to set up the 22nd Law Commission. The Law Ministry will now notify the new panel, which will have a three-year term.
Background
About Law Commission of India
Composition:
Functions
21st Law Commission
Source: The Hindu
Syllabus subtopic: Structure, Organization and Functioning of the Executive and the Judiciary
Prelims and Mains focus: about the group: its mandate and significance
News: The Union Cabinet has approved the setting up of an empowered technology group to help address issues such as “sub-optimal industrial development”.
About the group
Mandate
Significance of the move
Source: The Hindu
Syllabus subtopic: Welfare Schemes for Vulnerable Sections of the population by the Centre and States and the Performance of these Schemes
Prelims and Mains focus: about the second phase and its implementation: about Swachh Bharat Mission and its significance
News: The Centre approved the second phase of Swachh Bharat Mission (Rural), PM Modi’s pet project focussed on sustainability of ODF (Open defecation free) and management of solid and liquid waste.
Background
The rural sanitation programme was started on October 2, 2014, when the sanitation coverage in the country was reported at 38.7 per cent. More than 10 crore individual toilets have been constructed since the launch of the mission and as a result, rural areas in all states have declared themselves open defecation free (ODF) as on October 2, 2019.
Implementation of second phase
About Swachh Bharat Mission (SBM)
Source: The Hindu
Syllabus subtopic: Welfare Schemes for Vulnerable Sections of the population by the Centre and States and the Performance of these Schemes
Prelims and Mains focus: about the move; about PMFBY: objectives and criticisms
News: The Union Cabinet approved the revamp of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme at its meeting.
Key highlights of the meeting
Criticism of PMFBY
PMFBY has come in from flak from a wide variety of stakeholders.
Revamping PMFBY
About PMFBY
Objectives:
Source: The Hindu
Syllabus subtopic: Welfare Schemes for Vulnerable Sections of the population by the Centre and States and the Performance of these Schemes
Prelims and Mains focus: about the key features of the event; about smart city mission and its objectives
News: Organised by the Ministry of Housing and Urban Affairs (MoHUA), the 100-day sister cities challenge will commence on 20th February.
What is it?
About the event
About Smart City Mission
Source: The Hindu
News: Getting rid of exemptions under a new tax regime proposed by the budget could make small savings less attractive for individuals and dry up this source of funds for the government.
How do exemptions apply to small savings?
How are the rates of interest determined?
Okay, but how does the government utilize NSSF?
The government uses NSSF as a source of funds for some of its investments through the National Highways Authority of India (NHAI) bonds and also to finance part of its deficit through government securities. NSSF buys these securities and collects the interest on them. Without exemptions in the new tax regime, this steady source of funds may not be available to the government.
How do small savings impact deficits?
Economists has said how state governments till 2003 could borrow from people in the form of postal savings. The rates on postal savings were above the average interest rates and there was no limit on borrowings for the states. The high interest rate led to a 15.2% growth in small savings rates per annum from 1995-2003 compared to 11% nominal growth. This coincided with high state deficits as there was no fiscal discipline and state governments could borrow as much as they wanted through postal savings.
Will a new tax regime bring fiscal discipline?
The removal of exemptions will have implications for the quality of our fiscal statistics. The magnitude of the impact in the short run would depend on how many people switch to the new tax regime. As more people move to the new regime, the Centre will find limited funds in NSSF, which it could earlier tap to finance its deficit or utilize it for off-budget borrowing. Removing exemptions will bring in self-discipline in the way the Centre uses public money.
Source: Livemint
Syllabus subtopic: Effects of Liberalization on the Economy, Changes in Industrial Policy and their Effects on Industrial Growth.
Prelims and Mains focus: about the move; benefits and significance; about share pledging
News: The Securities and Exchange Board of India (SEBI) has amended the SEBI (Depositories and Participants) Regulations by including an additional explanation that states that ‘pledge’ would also refer to ‘re-pledge of securities for margin or settlement obligations.’
Why?
A minor tweak in the manner ‘pledge’ is defined in the regulatory laws is expected to go a long way in minimising instances where stock brokers misuse client securities by pledging such shares for their own benefit in terms of meeting their margin requirements.
Background
Changes made
Likely benefits
The latest SEBI move comes close on the heels of the regulator developing an in-house system to track the movement of client securities that are collected as collateral by the brokers.
What is a pledged share?
Simply put, it is taking a loan against the shares one holds. It can be done by both investors and promoters.
Why do promoters pledge shares?
One of the methods promoters use to raise finance is to take loans against their holding in their company from banks or non-banking financial companies. For these financial institutions, these shares are collateral. Promoters can raise funds for various reasons-for meeting requirements of the business or personal needs.
Can banks sell the shares pledged by promoters?
What is the risk for retail investors in this?
High promoter pledged shares can wreak havoc in stock if price continues to fall and lenders sell these shares in the market. The sudden supply of shares can lead to further price fall and is a risk for retail investors who may have to sell the shares for a significant loss.
What should be the approach of retail investors in stocks with high pledged promoter holding?
Source: The Hindu
Syllabus subtopic: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.
Prelims and Mains focus: on the move and its implications; on the force majeure clause
News: The government said supply chain disruptions caused by the novel coronavirus (Covid-19) outbreak in China would allow companies to invoke the force majeure clause
Background
What is the force majeure clause?
Significance
The move is potential relief for companies facing difficulty in receiving shipments from China due to issues like the shutdown of operations there or a hold-up at the ports in India.
Sectors facing supply chain issues
Impact of supply chain disruption (CII analysis)
Source: Indian Express
Syllabus subtopic: Welfare Schemes for Vulnerable Sections of the population by the Centre and States and the Performance of these Schemes Prelims and Mains focus: about the key features of the scheme News: Andhra Pradesh Chief Minister has launched the first phase of the N
Syllabus subtopic: Role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders. Prelims and Mains focus: about the survey and its findings: limitations and recommendations News: In an attempt to assess the pattern of Internet
Karbis against ST status for hill Bodos in Assam Syllabus subtopic: Security Challenges and their Management in Border Areas Prelims and Mains focus: on the issue and concerns raised by Karbis; about Bodo Accord; CAA; Assam Accord News: An Assam-based insurgent group of Karbis, which signed
Tax haven Syllabus subtopic: Effect of Policies and Politics of Developed and Developing Countries on India’s interests, Indian Diaspora. Prelims and Mains focus: about the move and its implications; about tax haven and its characteristics News: European Union finance minist
Syllabus subtopic: Salient Features of the Representation of People’s Act. Prelims and Mains focus: About the meeting and the issues discussed; electoral reforms News: In a fresh bid to push the electoral reforms pending with the Centre, the Election Commission (EC) m
Foodgrain production set to touch a record high Syllabus subtopic: Major Crops - Cropping Patterns in various parts of the country Prelims and Mains focus: on the foodgrain production in India and the challenges associated News: The Agriculture Ministry’s second ad
Trump’s visit may seal helicopter deal Syllabus subtopic: Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests. Prelims and Mains focus: about the helicopter deal and its significance; about other deals on the anvil; India-US tr
Syllabus subtopic: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the Federal Structure, Devolution of Powers and Finances up to Local Levels and challenges therein. Prelims and Mains focus: about the move and its significance; about bifu
Syllabus subtopic: Statutory, Regulatory and various Quasi-judicial Bodies. Prelims and Mains focus: about the move and its significance; about Delimitation Commission of India: composition and mandate News: About six months after the State of Jammu and Kashmir was split in
Syllabus subtopic: Structure, organization and functioning of the Executive and the Judiciary, Ministries and Departments of the Government. Prelims and Mains focus: about the issue and its implications; about collegiums system: merits and criticisms News: The Supreme Court
Syllabus subtopic: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation. Prelims and Mains focus: about the initiative: objective s and significance; about SVAROP inititative; about SEED: objectives and mandat
Syllabus subtopic: Awareness in the fields of IT, Space, Computers, Robotics, Nano-technology, Bio-technology and issues relating to Intellectual Property Rights. Prelims and Mains focus: about the programme and reasons for its shutdown; about internet penetration in India
Syllabus subtopic: Conservation, Environmental Pollution and Degradation, Environmental Impact Assessment. Prelims and Mains focus: about the report: key findings and recommendations News: The State of India’s Birds 2020 (SoIB), a new scientific report was jointly rel
Syllabus subtopic: Issues Relating to Development and Management of Social Sector/Services relating to Health, Education, Human Resources. Various Security Forces and Agencies and their Mandate. Prelims and Mains focus: about the SC judgement and its significance
Steps were taken by the office of the Chief of Defence Staff (CDS) Syllabus subtopic: Various Security Forces and Agencies and their Mandate. Prelims and Mains focus: about Chief of Defence Staff: mandate and significance; about other initiatives in the Indian defence sector News: The offic
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