National Current Affairs – UPSC/KAS Exams- 29th December 2018
New clarifications regarding FDI in e commerce
Topic: Indian Economy
IN NEWS: The new clarification issued by the government regarding FDI in e-commerce has created a furore among firms in the sector and their vendors alike. The Department of Industrial Policy & Promotion issued a clarification to the existing rules pertaining to Foreign Direct Investment in e-commerce companies. The main features of the clarification include the provision that vendors that have any stake owned by an e-commerce company cannot sell their products on that e-commerce company’s portal.
More on the Topic:
- Another provision says any vendor who purchases 25% or more of its inventory from an e-commerce group company will be considered to be controlled by that e-commerce company, and thereby barred from selling on its portal.
- This provision aims to ensure that vendors in which marketplaces, such as Amazon, have a stake do not sell the bulk of their items to a third-party vendor who then goes on to sell those items on the e-commerce marketplace.
- The provision seeks to deny control by the marketplace entity over vendors. The third major provision says the e-commerce firm will not be allowed to influence the price of a product sold on its portal by giving incentives to particular vendors.
What is the context for these changes?
- E-commerce companies can operate under two different models in India. The first is the marketplace model where the e-commerce firm simply acts as a platform that connects buyers and sellers. FDI is allowed in e-commerce companies in this model.
- The second model is inventory-based where the inventory of goods sold on the portal is owned or controlled by the e-commerce company. FDI is not allowed under this model.
- What has been happening is that large e-commerce companies such as Amazon and Flipkart, while not owning inventory themselves, have been providing a platform for their group companies such as CloudTail and WS Retail respectively.
- Some see this as skewing the playing field, especially if these vendors enjoyed special incentives from the e-commerce firm, over others. These controlled or owned vendors may then be able to offer discounts to customers that competitors may not be able to match.
Who benefits?
- The thrust of the DIPP policy is directed at protecting small vendors on e-commerce websites.
- It seeks to ensure small players selling on the portals are not discriminated against in favour of vendors in which e-commerce companies have a stake.
- The Confederation of All India Traders welcomed this move as it feels the new set up will ensure a level playing field for all vendors looking to sell on the e-commerce portals. Smaller marketplaces that do not have stake in any vendors will also be able to now compete
Who else will be affected?
- The main players to be affected will be group companies and affiliates of the biggest e-commerce platforms, Amazon and Flipkart. These include CloudTail, WS Retail, Myntra and private label brands such as Amazon Basics and Flipkart’s MarQ and to some extent the private label business of online marketplace operator ShopClues.
- The provision that bars companies — in which e-commerce firms have a stake — from selling on their portals will hurt start-ups as well, since many of these will be barred from selling due to minor equity stakes being held by the e-commerce companies.
Source: The Hindu
China-Pakistan Economic Corridor (CPEC)
Topic: International Relations
IN NEWS: Pakistan has said that the China-Pakistan Economic Corridor (CPEC) is a bilateral economic project and has no military dimensions.
More on the Topic:
- S. media report alleged that China had hatched a secret plan to build fighter jets and other military hardware in Pakistan as part of the $60 billion project.
- The Islamabad datelined report in the New York Times said Pakistani Air Force and Chinese officials were putting the final touches to the secret proposal. China last week dismissed as untrue the report.
About CPEC:
- CPEC (China-Pakistan Economic Corridor) is clutch of projects valued at $51 billion project which aims at rapidly expanding and upgrading Pakistan’s infrastructure and strengthening the economic ties between the People’s Republic of China (China) and Pakistan. It includes building roads, laying railway lines and pipelines to carry oil and gas.
- CPEC eventually aims at linking the city of Gwadar in South Western Pakistan to China’s North Western region Xinjiang through a vast network of highways and railways.
- The proposed project will be financed by heavily-subsidised loans, that will be disbursed to the Government of Pakistan by Chinese banking giants such as Exim Bank of China, China Development Bank, and the Industrial and Commercial Bank of China.
- The ‘China-Pakistan Economic Corridor’ violates India’s sovereignty and territorial integrity. India’s principal objection was that CPEC passed through Pakistan-occupied Kashmir (PoK)
Source:The Hindu
CRZ Notification 2018
Topic: Government policies
In news: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the CRZ Notification 2018, streamlining of Coastal Regulation Zone clearances, aimed at enhancing activities in the coastal regions and promoting economic growth while keeping in mind conservation principles of coastal regions.
More on the Topic:
- The move comes in the backdrop of a series of representations received by the Ministry of Environment, Forest and Climate Change from various coastal States and Union Territories, besides other stakeholders for a comprehensive review of the provisions of the CRZ Notification, 2011.
Provisions in the notification:
- According to the new notification only such projects, which are located in the CRZ-I (Ecologically Sensitive Areas) and CRZ IV (area covered between Low Tide Line and 12 Nautical Miles seaward) will require the necessary clearance from the Union Ministry of Environment, Forest and Climate Change.
- The powers for clearances with respect to CRZ-II (The areas that have been developed upto or close to the shoreline) and III (Areas that are relatively undisturbed) have been delegated at the State level.
- The new notification also relaxed the No Development Zone (NDZ) criteria. Densely populated rural areas with a population density of 2,161 per square kilometre, falling under CRZ-III A, now have NDZ of 50 meters from the High Tide Line (HTL) as against 200 meters stipulated in the CRZ Notification, 2011.
- For islands close to the mainland coast and for all Backwater Islands in the mainland, NDZ of 20 meters has been stipulated.
- The notification also permits temporary tourism facilities such as shacks, toilet blocks, change rooms, drinking water facilities etc. in beaches. Such temporary tourism facilities are also now permissible in NDZ of the CRZ-III areas.
- In order to address pollution in coastal areas, treatment facilities have been made permissible activities in CRZ—I B area subject to necessary safeguards. Defence and strategic projects have been accorded necessary dispensation.
Significance:
- The new notification will “boost tourism in terms of more activities, more infrastructure and more opportunities and will certainly go a long way in creating employment opportunities in various aspects of tourism.
Source: The Hindu
Draft Bill on Indian medicine
Topic: Governance
In news: The Union Cabinet has approved the draft National Commission for Indian System of Medicine Bill, 2018. The NCIM will promote “availability of affordable healthcare services in all parts of the country.
More on the Topic:
- The draft Bill will enable the constitution of a National Commission with four autonomous boards for the purpose of conducting overall education in Ayurveda, Unani, Siddha and Sowarigpa.
- “There are two common boards, namely the board of assessment and rating to assess and grant permission to educational institutions of Indian systems of medicine, and board of ethics and registration of practitioners of Indian systems of medicine to maintain a National Register and ethical issues relating to practice under the National Commission for Indian Medicine.
- To assess the standard of teachers before appointment and promotions, the Bill proposes an entrance and an exit exam that all graduates need to clear to get practising licenses.
Source: The Hindu
Kashmir stage
Topic: Environment and Ecology
In News: The hangul, the state animal of Jammu and Kashmir, is an endangered species. But the recent discovery that the animal, long thought to be confined to the Dachigam National Park, has begun using an old migratory route has given fresh hope to conservationists
More on the Topic:
- The upper passes of Dachigam national park, at an altitude of 14,000 ft, received the season’s first heavy snowfall , which sounded the bugle for the annual migration of the Kashmir stag, locally known as hangul, from the Dagwan river in Upper Dachigam (at an altitude of 7,500 ft) to Lower Dachigam (5,500 ft).
- The national park is considered the last undisturbed home of the hangul, a sub-species of the European red deer, in Kashmir. The animal was classified as ‘critically endangered’ by the International Union for Conservation of Nature (IUCN).
- The species is believed to have travelled all the way from Bukhara in Central Asia to Kashmir. It is the only sub-species of red deer in India.
Source:PIB
Tiny tracker to help fight rhino poaching
Topic: Science and Technology
In news: French tech company Sigfox has developed a bite-size tracker that can be inserted into the horns of rhinos to help conservationists monitor and protect the endangered species.
More on the Topic:
- Cameras, infrared and motion sensors, electronic bracelets and drones have been used over the years to protect endangered species, but have at times been limited by vast distances and limited resources in the countries concerned.
- Sensors will be able to give the exact location of rhinos using the firm’s network over a longer period of time.
- Sensors will help rangers and conservation experts to observe from a distance, taking less risk, and especially to anticipate potential dangers that the animal could (face).
- The sensors can alert park rangers when rhinos approach an area identified as particularly dangerous due to previous instances of poaching.
- The sensors can be used to get rescue teams to the location in real time.
- The sensor only wakes up when it has to transmit data, which makes it immune to interception by poachers and the tracking network uses a specific radio signal which offers more security guarantee than other tracking devices.
Source: The Hindu
Gaganyaan programme
Topic: Science and Technology
In news: The Union Cabinet on Friday approved the ambitious Gaganyaan programme, which will send three Indian astronauts to space for up to seven days by 2022 at a cost of Rs. 10,000 crore.
More on the Topic:
- The project was first announced by Prime Minster Narendra Modi in his Independence Day speech 2018. As part of the programme, two unmanned flights and one manned flight will be undertaken.
- The first human space flight demonstration is targeted to be completed within 40 months of the sanction date. Prior to this, two unmanned flights in full complement will be carried out to gain confidence
- The Indian Space Research Organisation (ISRO) has developed the launch vehicle GSLV MK-III, which has the necessary payload capability to launch a three-member crew module in low earth orbit.
- The ISRO has also tested the crew escape system, an essential technology for human space flight. Elements of the life support system and the space suit have also been realised and tested.
Source: The Hindu
