Daily Current Affairs IAS UPSC Prelims and Mains Exam 9th April 2020
Daily Current Affairs IAS UPSC Prelims and Mains Exam 9th April 2020
Daily Current Affairs IAS UPSC Prelims and Mains Exam 9th April 2020
April 9,
2020
Archives
In News:
The Government has directed Food Corporation of India to provide wheat and
rice to NGOs.
The food grains will be provided at the Open Market Sale Scheme (OMSS) rates
without going through the e-auction process.
Key takeaways:
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FCI has network of more than 2000 godowns in the country.
Large network of godowns will ensure smooth supply of food grains to these
organisations in this hour of crisis posed by COVID-19.
It will help relief camps in their philanthropic work of feeding poor and migrant
workers.
In News:
States are asked to invoke Essential Commodities (EC) Act, 1955 by the Ministry
of Home Affairs to maintaining smooth supply of essential items at fair prices in
the country.
The measures include fixing of stock limits, capping of prices, enhancing
production, etc.
Key takeaways:
States can now notify orders under the EC Act, 1955 without prior agreement
from the Central Government up to June 30, 2020.
Offences under EC Act are criminal offences and may result in imprisonment of 7
years or fine or both.
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Offenders can also be booked under the Prevention of Black-marketing and
Maintenance of Supplies of Essential Commodities Act, 1980.
In News:
It will capture and inactivate novel corona virus, the causative agent of
COVID-19.
In News:
Key takeaways:
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He has received a National Award (2017) and a Padma Shri (2019) for his
extraordinary work.
Biofortification
(MAINS FOCUS)
POLITY/WELFARE
Topic: General Studies 2:
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MPs have only recommendatory role and the district authority is empowered to
examine the eligibility of works, select the implementing agencies and monitor it.
Judiciary: The Supreme Court has upheld the scheme but called for a robust
accountability regime
Second ARC: It recommended its abrogation altogether, highlighting the problems
of the legislator stepping into the shoes of the executive
Political discontent: Funding under the scheme was source of much goodwill for
elected representatives.
Centralising tendency: The step undermines the decentralised manner of funding
local area development
There are dangers that allocations of freed up funds can be discriminatory.
ECONOMY
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Topic: General Studies 3:
Challenges
There are expectations of further such packages (aimed at businesses & middle
class) and the challenges of financing these relief measures.
Also, the financing strategy should be to raise long-term funds at cost effective
rates, with flexible repayment terms.
Utilizing the availability of unused resources in the state disaster relief fund to the
tune of ₹60,000 crore
Issuing of GDP-linked bonds
Indian rupee denominated 25-year GDP-linked bonds that are callable from,
say, the fifth year
The interest on a GDP-linked bond is correlated to the GDP growth rate and
is subject to a cap
The issuer, the GoI, is liable to pay a lower coupon during years of slower
growth and vice-versa.
Precedence: Costa Rica, Bulgaria and Bosnia-Herzegovina issued such GDP-
linked bonds in the 1990s, from whose experience India could learn
Prerequisite: Publishing reliable and timely GDP data
Paying dues to GoI: The 15 largest non-financial central PSEs (CPSEs) owe
the government ₹25,904 crore as of end-March 2019
Using cash and bank deposits of these 15 CPSEs (₹64,253 crore) that is in
excess of their operating requirements, to increase dividend to government
Monetization of non-core assets of these CPSEs as they generally yield 200
basis points lower than the returns on their core businesses.
Forming Public sector bank holding company (‘Holdco’) along the lines of
Singapore’s Temasek Holdings to enable PSEs to monetise their non-core
assets at remunerative prices
Securitization of ₹30,168 crore loans that CPSEs have extended to
employees, vendors and associates – to ensure that associated businesses
remain liquid
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Pic Source: The Hindu
RBI has allocated ₹1 lakh crore to carry out long-term repo operations and has
reduced the repo rates by 75 basis points to 4.4% to help banks augment their
liquidity in the wake of pandemic
Government already enjoys handsome dividends pay-outs by RBI
During the five years ending on June 30, 2019, the RBI paid the GoI 100% of
its net disposable income
In FY2019 dividends from RBI more than trebled to ₹1.76 lakh crore from
₹50,000 crore in FY2018.
The Bimal Jalan panel constituted in 2019 to review the RBI’s economic capital
framework opined that:
The RBI may pay interim dividends only under exceptional circumstances
The unrealised gains in the valuation of RBI’s assets ought to be used as risk
buffers against market risks and may not be paid as dividends
Therefore, it is in India’s self-interest to allow a robust and independent RBI to
defend the financial sector’s stability
Conclusion
The GoI may finance the COVID-19 rescue package by issuing GDP-linked bonds, tapping
PSEs’ excess liquidity and monetising non-core assets
Model questions: (You can now post your answers in comment section)
Note:
Correct answers of today’s questions will be provided in next day’s DNA section. Kindly
refer to it and update your answers.
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1. Essential Commodities (EC) Act was established to prevent hoarding of the
essential commodities.
2. Recently the states are being asked by the Government of India to invoke EC Act
amidst COVID-19 pandemic.
1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2
1. It will provide major food grains to NGOs at the Open Market Sale Scheme (OMSS)
rates.
2. It plays major role in ensuring food security in India.
1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2
Q.3 The nasal passage gel is being developed by which of the following?
1. IIT Bombay
2. Department of Science and Technology
3. Indian Council of Medical Research
4. Ministry of Health and welfare
1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2
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ANSWERS FOR 8th April 2020 TEST YOUR KNOWLEDGE (TYK)
1 C
2 A
3 A
4 B
Must Read
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