National Current Affairs – UPSC/KAS Exams- 14th November 2018
New index to check ease of doing agri-business
Topic: Indian Economy
IN NEWS: The Centre expects to roll out a new Ease of Doing Agri-Business Index early next year, which will rank the States on the basis of such reforms, as well as their investment in agriculture, increased productivity, reduction of input costs, and risk mitigation measures.
More on the Topic:
- In future, the Ministry may consider rewarding the higher performing States [both in absolute and incremental terms] by linking the performance with allocation from flexi funds made available in various flagship schemes of this Ministry.
Time Line
- The concept note is open for public and stakeholder feedback until November 15, following which operation guidelines will be drafted by the end of the month. An online dashboard to track State performances will be developed by the year-end, and a national level workshop to roll out the Index will be held in January 2019, according to the concept note’s timelines.
Parameters
- The proposed index has a wider ambit, but the focus is still on reforms, with marketing reforms (25%) and governance and land reforms (20%) carrying almost half of the weight of the parameters in its scoring system.
- Another major parameter which States will be rated on is their success in reducing the cost of farm inputs (20%) by distributing soil health cards and encouraging organic farming and micro-irrigation.
- Risk mitigation measures such as crop and livestock insurance carry a 15% weightage, while increased productivity and investment in agriculture carry a 10% weight each.
- The parameters are process-oriented, and are meant to evolve as and when new reforms or initiatives are proposed.
Way Forward
- As agriculture is a State subject, the success of policies and reform initiatives proposed at the Centre is dependent on implementation by the States. “To ensure that reform agenda of the government is implemented at a desired pace by all State governments, there is a need to develop a competitive spirit between the States.
Source:The Hindu
Credit Rating Agencies
Topic: Economy
IN NEWS:The Securities and Exchange Board of India (SEBI) has tightened the disclosure norms for credit rating agencies (CRAs) that will now have to take into account various factors, including asset-liability mismatch, liquid investments, cash flows and capital infusion from parent or group entities while performing any rating action.
More on the Topic:
- In a circular issued, the capital markets regulator enhanced the quantum of disclosures by introducing additional norms that are largely based on the learnings from the IL&FS episode, which has affected the overall liquidity scenario, especially in the non-banking financial company (NBFC) segment.
Important Clauses:
- When a rating factors in support from a parent/group/ government, with an expectation of infusion of funds towards timely debt servicing, the name of such entities, along with rationale for such expectation, may be provided.
- When subsidiaries or group companies are consolidated to arrive at a rating, list of all such companies, along with the extent (e.g. full, proportionate or moderate) and rationale of consolidation, may be provided.
- Based on the learnings from the IL&FS episode, the regulator has also made it mandatory for rating agencies to disclose full list of subsidiaries or group companies if such entities form part of the consolidated ratings.
- SEBI also mandated CRAs to include a specific section on “liquidity” to highlight parameters like cash balances for servicing maturing debt obligation.
Significance:
- Enhanced disclosures on parent support, approach towards consolidation and liquidity will give investors more clarity on the rating drivers and assist in their own analytics.
What is a Credit Rating Agency:
- A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor’s ability to pay back debt by making timely principal and interest payments and the likelihood of default.
Source:The Hindu
Cyclone ‘GAJA’
Topic: Environment and Ecology
In news: The states of Tamil Nadu and Andhra Pradesh, as well as the union territory of Puducherry in India’s south, are bracing for the impact of Cyclone Gaja, expected to bring heavy rains and strong winds to several parts of the region this week.
About Cyclones:
- In meteorology, a cyclone is a large scale air mass that rotates around a strong center of low atmospheric pressure.Cyclones are characterized by inward spiraling winds that rotate about a zone of low pressure.
- Cyclogenesis is the process of cyclone formation and intensification.
- There are a number of structural characteristics common to all cyclones. A cyclone is a low-pressure area.A cyclone’s center (often known in a mature tropical cyclone as the eye), is the area of lowest atmospheric pressure in the region.
- Near the center, the pressure gradient force (from the pressure in the center of the cyclone compared to the pressure outside the cyclone) and the force from the Coriolis effect must be in an approximate balance, or the cyclone would collapse on itself as a result of the difference in pressure.
- Because of the Coriolis effect, the wind flow around a large cyclone is counter clockwise in the Northern Hemisphere and clockwise in the Southern Hemisphere.
- In the Northern Hemisphere, the fastest winds relative to the surface of the Earth therefore occur on the eastern side of a northward-moving cyclone and on the northern side of a westward-moving one; the opposite occurs in the Southern Hemisphere.
- In contrast to low pressure systems, the wind flow around high pressure systems are clockwise (anticyclonic) in the northern hemisphere, and counter clockwise in the southern hemisphere.
Source: The Hindu
2nd Startup India Investment Seminar
Topic: Economy
In news: Embassy of India in China in partnership with Startup India Association (SIA) and Venture Gurukool organized 2nd Startup India Investment Seminar on 12 November 2018 in Beijing for fostering innovation and entrepreneurship among Indian youth.The 1st Startup Indian Investment event was organised in November 2017.
More on the Topic
- The event was planned to expose Chinese VCs and investors to the promising Indian startups and also help Indian startups to reach out to the large Chinese investors for receiving investment for their companies.
- Forty-two Indian entrepreneurs representing 20 Indian startups participated in the event and pitched before Chinese investors to make investments in their ventures. More than 350 Chinese Venture Capital (VC) funds, angel investors participated in a day long pitching session and seminar.
Statrtup India:
- Start-up India is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Start-ups in the country that will drive sustainable economic growth and generate large scale employment opportunities.
- The Government through this initiative aims to empower Start-ups to grow through innovation and design.
- From digital/ technology sector to a wide array of sectors including agriculture, manufacturing, social sector, healthcare, education, etc.; and From existing tier1 cities to tier 2 and tier 3 cities including semi-urban and rural areas are covered under the scheme.
- In order to commence operations, Start-ups require registration with relevant regulatory authorities. Delays or lack of clarity in registration process may lead to delays in establishment and operations of Start-ups, thereby reducing the ability of the business to get bank loans, employ workers and generate incomes.
- Government has decided to set up a mobile app and web portal for the purpose of easy registration of company and filing for compliances/obtaining information on various clearances/ approvals/ registration.
Source:The Hindu
Climate risk from rise in Indian AC units
Topic: Environment and Ecology
In news: As per a report written by the Rocky Mountain Institute, by 2022, India is expected to have a fourth of the world’s air conditioning units, and the risks to climate from this could be immense.
More on the Topic
- The refrigerants used for cooling are the major contributors to global warming, and if left unchecked, they could cause global temperatures to rise by 0.5 degrees Celsius.
- Under a business-as-usual growth trajectory, about 4.5 billion room air-conditioners are estimated to be installed by 2050 , a nearly four-fold jump from today’s installed base, with emerging economies observing a five-fold increase.
- HFCs are a family of gases that are largely used in refrigerants at home and in car air-conditioners. However, they substantially worsen global warming.
- India, China, the United States and Europe have committed themselves to reducing the use of HFC by 85% by 2045.
- In 2016, India was a signatory to a compact of 107 countries to “substantially phase” out a potent greenhouse gas, called hydrofluorocarbons (HFC), by 2045 and move to prevent a potential 0.5 C rise in global temperature by 2050.
Efforts by government in this regard:
- Union Power Ministry has launched a campaign to promote energy efficiency in the area of air-conditioning. This initiative is launched on voluntary basis to increase awareness and encourage consumers to adopt the guidelines. It will save energy and reduce greenhouse gases.
Source:The Hindu
Energy Efficiency Revolving Fund
Topic: Economy
In news: Asian Development Bank (ADB) and Energy Efficiency Services (EESL) signed a USD 13 million grant to set up Energy Efficiency Revolving Fund.
More on The Topic:
- The fund is to be administered by ADB.It aims to expand and sustain investments in the energy efficiency market in India, build market diversification, and scale up existing technologies.
- Global Environment Facility (GEF) will provide the additional financing for the ongoing projects under this fund.Additional grants from GEF will be used by EESL for making investments in new and emerging technologies.
- EESL is under the administration of Ministry of Power and is working towards mainstreaming energy efficiency.
Asian Development Bank
- The Asian Development Bank (ADB) is a regional development bank established on 19 December 1966,which is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila, Philippines.
- The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly the Economic Commission for Asia and the Far East or ECAFE) and non-regional developed countries.
- The ADB defines itself as a social development organization that is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
- This is carried out through investments in the form of loans, grants and information sharing in infrastructure, health care services, financial and public administration systems, helping nations prepare for the impact of climate change or better manage their natural resources, as well as other areas.
Samudra Shakti
Topic: International Relations
In news: Samudra Shakti,bilateral naval exercise between India and Indonesia is going to be organised at port of Surabaya, Java.
More on The Topic
- Indian Naval Ship Rana is going to participate in this year edition of the exercise.
- The aim of the exercise is to strengthen bilateral relations, expand maritime co-operation, enhance interoperability and exchange best practices.
- India and Indonesia shares “Comprehensive Strategic Partnership”.
Source: The Hindu
