PERIYAR IAS CURRENT AFFAIRS 11-JUNE-2018
Paper 1:
Topic: Modern Indian history from about the middle
of the eighteenth century until the present- significant events, personalities,
issues.
Bankim Chandra
Context: The Bharatiya Janata Party (BJP) in
West Bengal is planning to celebrate the achievements of Bankim Chandra
Chattopadhyay.
Bankim Chandra- important contributions:
§ Bankim Chandra Chattopadhyay wrote the national
song Vande Mataram.
§ The 19th century author’s novel Anandamath —
which was set in the background of the Sanyashi Bidroho (rebellion of monks in
late 18th century) — is considered to be one of key works on Bengal’s
nationalism.
§ His first Bengali fiction is called
‘Durgeshnondini’ published in 1865.
§ He also wrote other famous novels like
Kapalkundala in 1866, Mrinalini in 1869, Vishbriksha in 1873, Chandrasekhar in
1877, Rajani in 1877, Rajsimha in 1881 and Devi Chaudhurani in 1884. He brought
out a monthly magazine called Bangadarshan in 1872.
What’s important?
For Prelims and Mains: Bankim Chandra-
Important literary works and role in Indian National movement.
Sources: the hindu.
Topic: Women related issues.
U.K. Women Celebrate 100 Years of Voting
Rights
Context: June 10, 2018 marked 100 years since
the first women won the right to vote in Britain.
Background:
The Representation of the People Act, 1918
granted property-owning British women over age 30 the right to vote.
What’s important?
§ For Prelims: Right to Vote for women in
Britain.
§ For Mains: Significance of voting rights for
women, historical position of women across the world.
Sources: the hindu.
Paper 2:
Topic: Statutory, regulatory and various
quasi-judicial bodies.
Vigilance commissioner
Context: Former NIA chief Sharad Kumar is the
new vigilance commissioner for a term of four years or till he attains the age
of 65.
About CVC:
§ It is the apex vigilance institution. It was
created via executive resolution (based on the recommendations of Santhanam committee) in 1964 but was conferred with statutory
status in 2003. It submits its report to the President of India.
§ Composition: Presently, the body consists of central
vigilance commissioner along with 2 vigilance commissioners.
§ Appointment: They are appointed by the President of
India on the recommendations of a committee consisting of Prime Minister, Union
Home Minister and Leader of the Opposition in Lok Sabha (if there is no LoP
then the leader of the single largest Opposition party in the Lok Sabha).
§ Term: Their term is 4 years or 65 years,
whichever is earlier.
§ Removal: The Central Vigilance Commissioner or
any Vigilance Commissioner can be removed from his office only by order of the
President on the ground of proved misbehavior or incapacity after the Supreme
Court, on a reference made to it by the President, has, on inquiry, reported
that the Central Vigilance Commissioner or any Vigilance Commissioner, as the
case may be, ought to be removed.
What’s important?
§ For Prelims: CVC- eligibility, appointment
and removal.
§ For Mains: Corruption- issues, challenges and
ways to prevent.
Sources: the hindu.
Topic: Role of civil services in a democracy.
Lateral entry into Civil Services
Context: In an apparent bid to bring in
expertise from the private sector individuals and infuse talent into the
country’s bureaucracy, the government has invited “outstanding individuals” to
join the government at the joint secretary level at the Centre.
§ In this regard, the Department of Personnel
and Training (DoPT) has invited applications for 10 senior level positions in
the Departments of Economic Affairs, Revenue, Commerce and Highways among
others.
Eligibility:
§ The eligibility criteria includes
“Individuals working at comparable levels in Private Sector Companies,
Consultancy Organisations, International/Multinational Organisations with a
minimum of 15 years’ experience” besides those working in central public sector
undertakings, autonomous bodies, statutory organisations, research bodies and
universities.
§ The notification specifies a minimum age of
40 years and minimum qualification of graduation from a recognised university
or institute while higher qualification will be an added advantage.
§ The recruitment will be on contract basis for
three to five years.
Background:
So far, these posts were held by joint
secretary level officers, who were career bureaucrats, who join the service
after passing UPSC exam. The post of joint secretary (JS) is crucial for policy
making and implementation of government programmes and schemes, with most
crucial decisions in ministries and departments taken by bureaucrats appointed
JS.
Significance of this move:
Though the idea of lateral entry of private
individuals into the administrative framework has been under discussion for
some years now, this is the first move towards implementing the idea, which is
generating curious debate on the pros and cons of the move.
Need for alter entry in civil services:
Shortfall in numbers: There is an overall 20% shortfall of
IAS cadre officers alone in 24 state cadres. The Baswan Committee (2016) has
shown how large states such as Bihar, Madhya Pradesh and Rajasthan have a
deficit of 75 to over 100 officers and their unwillingness to sponsor officers
to go to the Centre on deputation is understandable. Lateral induction is,
therefore, a small step towards essential housekeeping in central government
staffing and ought to be supported.
Target oriented: Outside talent from the private sector
is more likely to be target-oriented, which will improve the performance of the
government. Also, more competition will encourage career civil servants to
develop expertise in areas of their choice.
Improved governance: The conventional wisdom on lateral entry
is that it infuses fresh energy and thinking into an insular, complacent and
often archaic bureaucracy. It enables the entry of right-minded professionals
and the adoption of best practices for improving governance.
Challenges and concerns:
Disturbed balance: The proposal for lateral entry at
senior decision-making levels, besides increasing the disconnect between
policymaking and implementation, will also result in inequitable sharing of the
benefits and burdens of government service, with permanent civil servants left
to bear the burden of “humble” implementation and lateral entrants getting
access to “glamorous” policymaking positions, without having roughed it out in
remote and rural India in the rough and tumble of Indian democracy.
Deters the available talent: By suggesting a contract-based system
for positions of joint secretary and above, the signal would be sent out that
only mid-career positions would be within reach in about 15-18 years of service
and there would be considerable uncertainty about career progression
thereafter. Coupled with unattractive salary scales and non-entitlement to
defined pension since 2004, this would become a potent trinity to deter
talented persons from aspiring to civil service careers.
Difficulty in assessing performance: Also, it is not easy to assess the
performance of a secretary to the government, given the sheer complexity and
amorphous nature of the job. The induction of lateral entrants would not by
itself suffice for better performance orientation and enhanced accountability.
It would be as difficult to measure the performance of lateral entrants as it
would of career civil servants.
What’s important?
§ For Prelims: Nothing Much.
§ For Mains: Lateral entry, pros, cons,
concerns, challenges and solutions.
Sources: the hindu.
Topic: Government policies and interventions for
development in various sectors and issues arising out of their design and
implementation.
Seva Bhoj Yojna
Context: The Union Ministry of Culture recently introduced a new scheme called
‘SevaBhojYojna’ to reimburse the central share of CGST and IGST on items for
food/prasad/langar/bhandara offered free of cost by charitable religious
institutions.
About Seva Bhoj Yojana:
The scheme seeks to reimburse the central
government’s share of Central Goods and Services Tax (CGST) and Integrated
Goods and Service Tax (IGST) on purchase of raw items such as ghee, edible oil,
atta, maida, rava, flour, rice pulses, sugar and jaggery, which go into
preparation of food/prasad/langar/bhandara offered free of cost by religious
institutions.
The main objective of the scheme is to lessen
the financial burden of such charitable religious institutions, which provide
free of cost without any discrimination to the general public and devotees.
The charitable religious institutions
including temples, gurudwara, mosque, church, dharmik ashram, dargah,
monasteries, which fulfill the following criteria are eligible for the grant:
§ The institutions that have been in existence
for at least five years before applying for financial assistance/grant.
§ The institutions that serve free food to at
least 5000 people in a month.
§ The institutions covered under Section 10(
23BBA) of the Income Tax Act or those registered as Society under
Societies Registration Act ( XXI of 1860) or as a Public Trust under any law
for the time being in force of statuary religious bodies constituted under any
Act or institutions registered under Section 12AA of Income Tax Act.
What’s important?
For Prelims and Mains: Main features of the
scheme.
Sources: the hindu.
Paper 3:
Topic: Indian Economy and issues relating to
planning, mobilization of resources, growth, development and employment.
Bad Bank
Context: The concept of having a ‘bad bank’ to
take over the troubled loans of public sector banks (PSBs) is being considered
by the government to enable them to get back to business. Finance minister
Piyush Goyal recently announced that a bankers’ panel would look at the
feasibility of setting up a new asset reconstruction company (ARC) or asset
management company (AMC) to take over bad loans of PSBs. The panel is headed by
Punjab National Bank non-executive chairman Sunil Mehta.
Background:
The Bad Bank concept was pioneered at the
Pittsburgh-headquartered Mellon Bank in 1988 in response to problems in the
bank’s commercial real-estate portfolio. According to McKinsey & Co, the
concept of a “bad bank” was applied in previous banking crises in Sweden,
France, and Germany.
How does a bad bank work?
While the government has not charted out any
guidelines on the structure of a bad bank, such an institution would be largely
based on the principles of an asset restructuring company (ARC), which buys bad
loans from the commercial banks at a discount and tries to recover the money
from the defaulter by providing a systematic solution over a period of time.
Since a bad bank specialises in loan recovery, it is expected to perform better
than commercial banks, whose expertise lies in lending.
Why a bad bank is likely to succeed?
§ A single government entity will be more
competent to take decisions rather than 28 individual PSBs.
§ Capacity building for a complex workout can
be better handled by the government which has regulatory control and has
management skillsets in public sector enterprises.
§ Foreign investors with both risk capital and
risk appetite would be more in a government- led initiative, knowing that
regulatory risks would stand considerably mitigated in various stages of
resolution, including take outs.
What needs to be done now?
Whether or not the knots in the bad bank idea
are sorted out, the government should focus on other reforms as well. One,
amend the Prevention of Corruption Act to shield bankers and officers from
investigative witch-hunts. Two, back bankers to take demonstrable action
against wilful defaulters. And three, take a hard look at what ails the
Insolvency and Bankruptcy Code.
What’s important?
§ For Prelims: What is a bad bank?
§ For Mains: Bad bank- concept, pros, cons,
challenges and alternatives.
Sources: the hindu.
Topic: Indian Economy and issues relating to
planning, mobilization of resources, growth, development and employment.
Insolvency Code
Context: Recently, President Ram Nath Kovind
gave his nod to promulgate the Insolvency and Bankruptcy code (Amendment)
Ordinance 2018.
Significant changes introduced:
1. Homebuyers as financial creditors:
Homebuyers would now be treated as financial
creditors or, in other words, on par with banks, with the power to initiate
insolvency proceedings against errant builders. Homebuyers shall have the right
to be represented in the committee of creditors (CoC), which takes the key
decision regarding revival of the company or its liquidation.
2.
Definition of a
related party:
The amendment now defines related party in
relation to an individual running the firm and they would be barred from
bidding for the firm under the resolution process. Prior to the amendment,
related party was defined only with reference to a company facing insolvency.
3.
Changes in voting
share of committee of CoC:
The amendment has changed the voting share
required in CoC meetings. For extending the insolvency process beyond 180 days
till 270 days and for appointment of the resolution professional (who oversees
the process), now a voting share of 66% is sufficient, compared with earlier
requirement of 75%. Unless a specific approval is required in the Code, all
other decisions of the CoC can be taken with 51% voting share against the
earlier norm of 75%.
Withdrawal from the insolvency process is
permitted with the approval of 90% of voting share of the CoC.
4.
If a financial
creditor is a related party:
If a financial creditor (banks and other
financial institution) or his authorised representative is a related party to
the company facing insolvency, it shall not have any participation or voting
during a meeting of the CoC.
However, exemption is provided in case the
financial creditor has become a related party on account of conversion or
substitution of debt to equity shares or instruments convertible into equity
shares prior to the date of commencement of insolvency proceedings.
5.
Moratorium
period:
For a company under insolvency, a moratorium
period is provided during which no parallel proceedings are allowed. Whether
such moratorium is available to guarantors of the company was a subject of
debate. Now the amendment has said that the moratorium is not available to
persons who provided guarantee for the loans availed by the corporate debtor.
6.
Tenure of an insolvency
resolution professional:
Under the insolvency process, an interim
resolution professional (IRP) is appointed first and then, a resolution
professional. As per the amendment, the tenure of the IRP would continue till
the appointment of the resolution professional (RP), compared with the earlier
30-day fixed tenure. Also, for the appointment of the RP, a written consent
from the professional is required in a specified format.
Sources: the hindu.
Topic: Awareness in space.
‘EPIC’ planet
Context: Scientists from ISRO have spotted for
the first time a distant planet six times bigger than Earth and revolving
around a Sun-like star about 600 light years away.
Key facts:
§ The planet has been named EPIC 211945201b (or
K2-236b). The host star is named EPIC 211945201 or K2-236.
§ The planet is smaller in size than Saturn and
bigger than Neptune. Its mass is about 27 times Earth’s and six times that of
Earth at radius. The scientists estimate that over 60% of its mass could be
made up of heavy elements like ice, silicates and iron.
§ With this discovery India has joined a
handful of countries which have discovered planets around stars.
§ The discovery was made using a PRL-designed
spectrograph, PARAS, to measure and confirm the mass of the new planet.
About PARAS:
§ PARAS is an echelle spectrograph (with
resolution of 60,000) designed and developed by the members of the Astronomy
and Astrophysics Division of PRL.
§ The primary aim of PARAS is to search for
planets around a sample of 100s of Dwarf main-sequence G,K,M type stars within
a volume of 100pc using the Simultaneous ThAr calibration technique. It has
wavelength coverage of 400nm to 680nm.
What’s important?
For Prelims and Mains: What are EPIC and
PARAS?
Sources: the hindu.
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