PERIYAR IAS CURRENT AFFAIRS 29-AUGUST-2017
Insights Daily Current Affairs, 29 Aug 2017
Topic: Important International
institutions, agencies and fora, their structure, mandate.
Atomic fuel reserve in Kazakhstan to ensure supply
Kazakhstan is all set to
open the world’s first Low Enriched Uranium
Bank in Oskemen. The International Atomic Energy Agency
launched the project in 2010.
§ The bank will hold 90 tons of
uranium—enough to power a large reactor for three years—and member states that
withdraw from the bank will cover the cost of restocking.
§ To ensure transport, the IAEA
signed an agreement with Russia in 2015 to allow the material to travel through
the country.
What is it for?
§ The bank will serve as a source of last resort for low-enriched uranium when IAEA members are
unable to either produce it or if it becomes unavailable on the international
market for whatever reason.
§ This function will help non-proliferation efforts. By providing uranium, it will
disincentivise countries from developing their own uranium enrichment
capacities—as even supposedly peaceful programs could see uranium enriched to a
weapons-grade level.
§ The bank seeks to ensure that in the event of an international crisis or similar
circumstances, countries dependent on nuclear power would still have access to
uranium.
The IAEA, which manages the
reserve, has established a series of strict criteria for a member state to
request and purchase uranium from the bank. These criteria include:
§ First, there must be a disruption in supply “due to extraordinary
circumstances” that would render the country in question unable to obtain
fuel by the usual means.
§ In addition, the IAEA must have certified that nuclear material has not been
diverted by the country in the past and that the country
complies with all safety measures.
§ The buying country must commit to using uranium only to produce fuel, never for weapons, and not to
enrich it or transfer it to third parties without the express consent of the
IAEA.
§ If these conditions are met and
the uranium is purchased at the prevailing market price, the material will be
introduced into special cylinders and transferred from northern Kazakhstan,
where the bank is located, to a facility where LEU can be converted into fuel.
International Atomic Energy
Agency (IAEA):
The IAEA is the world’s centre
of cooperation in the nuclear field. It was set up as the world´s “Atoms for Peace” organization in 1957 within the
United Nations family. It also seeks to promote the peaceful use of nuclear energy, and
to inhibit its use for any military purpose, including nuclear weapons.
§ It is not under direct control
of the UN. Though established independently of the United Nations through its
own international treaty, the IAEA Statute, the IAEA reports to both the United Nations General Assembly and
Security Council.
§ The Agency works with its
Member States and multiple partners worldwide to promote safe, secure and
peaceful nuclear technologies.
§ The IAEA Secretariat is
headquartered at the Vienna International Centre in Vienna, Austria.
§ The IAEA serves as an
intergovernmental forum for scientific and technical cooperation in the
peaceful use of nuclear technology and nuclear power worldwide.
Sources: et.
Paper 3:
Topic:
Effects of liberalization on the economy, changes in industrial policy and
their effects on industrial growth.
NITI
Aayog launches Ease of Doing Business Report
NITI Aayog has launched the Ease of Doing Business report based on an Enterprise
Survey of 3,500 manufacturing firms across Indian states and union
territories. The Enterprise Survey was conducted in
recognition of the importance of monitoring the business environment in India.
§ The survey has been conducted,
along with the IDFC Institute, to assess the business regulations and enabling
environment across India from firms’ perspective.
§ The World Bank’s ‘Ease of Doing
Business’ survey, which ranked India at 130, is confined to just two cities of
Delhi and Mumbai whereas the NITI-IDFC Survey covers 3,276 manufacturing
enterprises spread across India, including 141 earlystage firms and covering 23
manufacturing sectors.
§ The report comes in the
backdrop of the fact that India needs to create an environment that fosters
globally competitive firms, capable of driving and sustaining economic growth.
The major findings of this report are as follows:
1.
Economic Performance and Reforms:
A higher level of economic
activity and better performance on a range of doing business indicators are
strongly correlated.
§ Enterprises in high-growth
states are significantly less likely to report major or very severe obstacles
in land/ construction related approvals, environmental approvals and water and
sanitation availability relative to enterprises in low-growth states.
§ Quite remarkably, firms located
in high-growth states also report 25% less power shortages in a typical month,
compared to firms in low-growth states.
2.
Improvements over time:
Newer and younger firms report
a more favorable business environment in that they take less time in obtaining
approvals than older firms, suggesting an improvement in the business
environment. Newer firms include startups established after 2014. In addition,
young firms report that most regulatory processes do not constitute a major
obstacle to their doing business.
3.
Informational gaps:
States need to enhance
awareness of the steps being undertaken by them to the improve ease of doing
business. The survey data show low awareness among enterprises about single
window systems, instituted by states.
On average, only about 20% of
start-ups, which are of recent origin, report using single window facilities
introduced by state governments for setting up a business. Even among experts,
only 41% have any knowledge of the existence of these facilities.
4.
Labour regulations are a bigger
constraint for labour intensive firms:
Labour intensive sectors, that
create proportionately more jobs per unit of capital investment, feel more
constrained by labour related regulations. For example, compared to other
enterprises, the enterprises in labour intensive sectors:
§ 19% more likely to report that
finding skilled workers is a major or very severe obstacle.
§ 33% more likely to report that
hiring contract labour is a major or very severe obstacle.
§ Lose a greater number of days
due to strikes and lockouts.
§ Report higher average time for
environmental approvals and longer power shortages.
5.
Barriers to firm growth:
The experience of firms with
fewer employees is different from that of larger firms. In some cases, large
firms face more regulatory barriers than smaller firms.
Firms with more than 100
employees took significantly longer to get necessary approvals than smaller
firms with less than 10 employees. Large firms were also more likely to report
that regulatory obstacles were a major impediment to doing business and that
they incurred higher costs for getting approvals.
Way ahead:
Flexible labour laws will allow
firms to grow larger and reap economies of scale, raise productivity, create
jobs and spur higher growth. Reforming labour laws and achieving greater
flexibility in their implementation can greatly help enhance the ease of doing
business. Reforms are also required in the power sectors, facilitatation of
entry and exit of firms, levelplaying field for small and large firms,
improvement in access to finance and informing firms about the improvements in
ease of doing business norms.
Sources: pib.
Topic: Effects of liberalization
on the economy, changes in industrial policy and their effects on industrial
growth.
Consolidated FDI policy charter released
The government has brought out
the latest edition of its consolidated FDI policy document, which is a
compilation of the changes made in the past one year in a single document.
§ It is an initiative aimed at
ensuring greater ease of doing business in India and an investor-friendly
climate to foreign investors so that the country attracts more FDI.
Background:
The past one year has seen FDI
policy being liberalised in sectors including defence, civil aviation,
construction and development, news broadcasting and private security agencies.
These reforms have been incorporated in the document.
Key highlights:
Competent authority:
The document has spelt out
“competent authority” for FDI approvals, delegating powers to mainly
administrative departments in the absence of the Foreign Investment Promotion
Board.
§ While proposals relating to
banking, mining, defence, broadcasting, civil aviation, telecoms,
pharmaceuticals etc will have to be approved by administrative ministries, the
DIPP will be the authority to clear proposals relating to areas including
retail (single and multi-brand, and food).
§ For proposals relating to
financial services activities that are not regulated by any financial sector
regulator or where only part of the financial services activity is regulated or
where there is doubt regarding the regulatory oversight, the department of
economic affairs will clear the proposals.
Computation:
The document has formally
clarified that restriction of 25% on sales of one vendor through an e-commerce
marketplace will be computed on a financial year basis. The period to be
considered for compliance wasn’t mentioned earlier.
Inclusion of start-ups:
For the first time, the
document has included start-ups. As per the norms, start-ups can raise up to
100% of funds from Foreign Venture Capital Investors. Start-ups can issue
equity or equity-linked instruments or debt instruments to FVCIs against
receipt of foreign remittance.
Besides, a person resident
outside India (other than citizens or entities of Pakistan and Bangladesh) will
be permitted to purchase convertible notes issued by an Indian start-up company
for an amount of ₹25 lakh or more in a single
tranche. NRIs can also acquire convertible notes on non-repatriation basis.
Definition of venture capital fund:
The policy simplifies the
definition of ‘venture capital fund’ defined FDI-linked performance conditions without
diluting substance. So instead of complex definitions under the earlier FDI
regime, ‘venture capital fund’ is now defined as a fund so registered under the
Sebi (Venture Capital Funds) Regulations, 1996, while FDI-linked performance
conditions are basically the sector-specific conditions for companies receiving
foreign investment.
Sources: the hindu.
Topic: Awareness in the fields of
IT, Space, Computers, robotics, nano-technology, bio-technology and issues
relating to intellectual property rights.
Gobindobhog rice gets geographical indication status
Gobindobhog rice, a speciality
from Burdwan district of West Bengal, has got the geographical indication (GI)
status.
Significance of this move:
As a result of getting the GI
tag, as the certification is also called, rice from other regions or rice of
other varieties cannot be branded as ‘Gobindobhog’. Hence, the marketability of
the rice would be strengthened, for the local, national and international
markets.
About Gobindobhog rice:
Gobindobhog is a rice cultivar
from West Bengal. It is a short grain, white, aromatic, sticky rice having a
sweet buttery flavor.
§ It derives its name from its
usage as the principal ingredient in the preparation of the offerings to
Govindajiu, the family deity of the Setts of Kolkata.
§ The rice has several
advantages. It is cultivated late and therefore not much affected by rains. It
is less prone to pests as well. The productivity per area is high and farmers
get better prices for Gobindobhog rice.
About GI tag:
§ GI is covered under the Intellectual Property Rights and the Trade
Related Aspects of Intellectual Property Rights.
§ A GI tag certifies the origin of a product or produce from a
particular region as the quality or other features of the product is
attributable only to the place of its origin.
§ The tag helps farmers or
manufacturers, as the case may be, to get a better price in the market.
Sources: et.
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