Current Affairs for BANK, IBPS Exams

20 June 2016

:: National ::

T.S.R. Subramanian panel critical to higher education regulator (UGC)

• A high-power committee headed by former Cabinet Secretary T.S.R. Subramanian, tasked has recommended that the law that set up the higher education regulator University Grants Commission (UGC) be allowed to lapse.

• The committee's report, submitted recently to the Ministry of Human Resource Development, says the UGC has been unable over the years to effectively implement its regulations aimed at ensuring the quality of higher education in the country.

• The panel has instead suggested an alternative arrangement for a pruned UGC.

• “The UGC could be revamped, made considerably leaner and thinner, and could be the nodal point for administration of the proposed National Higher Education Fellowship Programme, without any other promotional or regulatory function,” it said.

Govt rein in on pulses hoarders

• About 1.30 lakh tonnes of pulses have been seized from hoarders in Haryana, Uttar Pradesh, New Delhi and other parts of northern India in the last few months.

• The crackdown is part of government efforts to rein in the spiralling prices of pulses, of which some varieties are selling in retail in large cities for Rs. 180-200 per kg.

• Finance Minister Arun Jaitley told a TV channel that action against hoarders last year helped the government bring the prices of pulses down by about Rs. 50 per kg in the retail market.

• This year, the Directorate of Revenue Intelligence, Income Tax department and local police have been conducting raids on people who are suspected to have been hoarding pulses to take advantage of the high prices, according to sources.

• The demand-supply gap could be even wider than five million tonnes.

• As against the average supply of 17 million tonnes of pulses, the national demand is about 24 million tonnes. India is largest producer of pulses but also largest consumer and a very large importer.

The model code of conduct (MCC) for polls is under review by a Parliamentary Committee

• The model code of conduct (MCC) for polls is under review by a Parliamentary Committee, which will suggest ways to check use of cash and other freebies to lure voters during the elections.

• The panel had, in an earlier report submitted three years ago, recommended reducing the time between enforcement of the model code and the day of polling.

• The panel had suggested that the MCC should come into force from the date of notification and not the announcement of poll schedule. The proposal is pending with the government.

• It is to be looked into quickly to avoid the frustration of people over non-implementation of the recommendation of the panel for three years.

• The panel has also decided to suggest ways to check distribution of cash and freebies ahead of the polls.

• The move comes after it took cognisance of the cancellation of polls in Aravakurichi and Thanjavur constituencies in Tamil Nadu recently following evidence of use of money and gifts to influence the voters.

:: International ::

Migrant crisis showing a light

• Contemporary writing on the ongoing “migrant crisis” has focused on the collapse of border-patrols and asylum bureaucracies; the erosion of political mandates in countries like Germany; and the rise of xenophobia, creating an impression of a world in chaos.

• The EU’s deployment of warships and intelligence assets against agents like Majid suggests a fundamental misunderstanding of the complex, and dispersed, networks of obligations and solidarities resulting from one of the largest migrations of humanity in recent memory.

• Many refugees and facilitators like Majid recall the past year-and-a-half as a moment of intense, frenetic freedom when the restrictive border apparatus across a vast geography, from the fringes of the Indian subcontinent to the heart of Europe, temporarily retreated.

• Its place was taken by a robust network of Afghans, Turks, Kurds, Syrians, Iranians, and Pakistanis, snapped in place to ferry migrants from across the world to the European border.

• So when a traveller from Lahore reaches Samos in Greece, he triggers off a wave of escrow payments — his family pays an agent in Pakistan, who maintains a running account with another agent in Tehran, who works with a Kurd in Van, who has people in Istanbul.

:: India and World ::

India wants NSG membership based on credentials and not on the basis of process

• An international consensus is building around India’s bid for membership to the Nuclear Suppliers Group (NSG), External Affairs Minister said.

• She also said that she is confident of a favourable outcome when the issue comes up for discussion at the NSG plenary in Seoul on June 23.

• According to Ms. Swaraj, the government is “hopeful of success in convincing China” by then, indicating that Beijing would not wish to go against the consensus built.

• “I think a consensus is being made, and I don’t think any country will break that consensus, and this time we will get the NSG membership,” Ms. Swaraj told reporters at the MEA’s annual press conference.

• By rule, decisions on memberships and other issues in the body that regulates nuclear trade have to be taken by consensus among all members.

• “All major issues, including India’s NSG membership, were discussed,” the MEA spokesperson said about the visit on June 16-17.

• China has said that it wants the NSG to agree on a process or “criteria” for members, indicating that Pakistan must benefit from any flexibility given to India,.

• “Instead of speaking about criteria, one should speak about our credentials. Our track record should be discussed. Whatever commitments and undertakings we gave prior to receiving the [NSG] waiver in 2008, we have kept,” Ms. Swaraj said.

::Science and Technology ::

Carbon dioxide levels surpassed 400 ppm in South Pole

• Carbon dioxide levels have surpassed 400 parts per million (ppm) at the South Pole for the first time in four million years, according to U.S. scientists.

• The South Pole remote location means it is the last to register the impacts of increasing emissions from fossil fuel consumption, the primary driver of greenhouse gas pollution, researchers said.

• The far southern hemisphere was the last place on Earth where CO{-2}had not yet reached this mark.

• Over the course of the year, CO{-2}levels rise during fall and winter and decline during summer in the Northern Hemisphere, as terrestrial plants consume CO{-2}during photosynthesis.

• However, plants only capture a fraction of annual CO{-2}emissions. For every year since observations began in 1958, there has been more CO{-2}in the atmosphere than the year before.

• Last year’s global CO{-2}average reached 399 ppm, meaning that the global average in 2016 will almost certainly surpass 400 ppm.

• The only question is whether the lowest month for 2016 will also remain above 400 ppm, researchers said. The annual rate of increase appears to be accelerating.

• The annual growth rate of atmospheric carbon dioxide measured at NOAA’s Mauna Loa Observatory in Hawaii jumped 3.05 ppm during 2015, the largest year-to-year increase in 56 years of monitoring.

• Part of last year’s jump was attributable to El Nino, the cyclical Pacific Ocean warming that produces extreme weather across the globe, causing terrestrial ecosystems to lose stored CO{-2}through wildfire, drought and heat waves.

:: Business and Economy ::

Members of MPC and Next RBI Governor to be announced

• The government is expected to soon announce both, members of the monetary policy committee, as well as the successor to RBI Governor Raghuram Rajan, according to sources.

• The government is working overtime to counter the fallout arising from sudden exit announcement of Reserve Bank of India (RBI) Governor, Raghuram Rajan.

• Both the prime minister’s office and the finance ministry have gone on a war footing to search for a successor.

• The new Governor would be announced well before the next monetary policy announcement scheduled on August 9.

• What is also certain is that the government will announce the formation of the monetary policy committee shortly.

• The Finance Bill, passed by the Parliament, has paved the way for the formation of such a panel.

• The monetary policy committee is to have have six members — three of them, including RBI Governor, who will head the panel, will be from the RBI while the remaining three will be external members.

• RBI Governor will have the casting vote in case of an undecided vote.

• The formation of the monetary policy committee was mooted by the Urjit Patel committee which was set up by Mr. Rajan shortly after he took charge as Governor.

• The committee suggested that monetary policy be rule-based and not discretion-based.

• Targeting inflation is to be the core objective of the central bank, and it will be answerable to law-makers if it failed to achieve the target, the Patel committee had suggested.

• RBI has already moved to an inflation-targeting framework following an agreement signed with the government in 2015.

Despite good policy some shortcomings in civil aviation policy

• India’s first-ever National Civil Aviation Policy (NCAP) formulated by the NDA governmentis no doubt well-intentioned and aimed at achieving overall growth of the sector in a structured manner.

• However, several shortcomings, as pointed out by analysts, could derail the projected growth and objective.

• Though measures have been announced to strengthen both these entities and bridge the deficit, the policy is silent on how to radically transform these organisations to meet modern-day challenges and to be process-driven to deliver world-class service.

• With around 20 per cent growth in the number of air passengers, what India needs is strong air safety and security regulators.

• The expected upside in helicopter operations, private flying and regional airlines will add to the pressure.

• Airports Authority of India (AAI) is another entity that needs complete transformation, yet NCAP falls short of addressing that.

• There is little clarity on the way forward for the AAI or about its listing in the stock exchanges.

• NCAP is silent on long-term plans for airport development. Industry observers expected directions on the hiving off Air Navigation Services (ANS) from the AAI and making it an independent, professional body.

• Moving to 0/20 from the 5/20 rule in international flying is a compromise following hectic lobbying by incumbent airlines which struggled to fulfil the criteria of five years of domestic experience and 20 aircraft to fly abroad.

• The relaxation to just 20 aircraft without any domestic flying criteria will not help new carriers like Vistara and AirAsia India significantly as they cannot fast track expansion owing to a resource crunch.

• Both these airlines, in which the Tatas are shareholders, have exhausted the initial capitalisation and their operations are continuing to make losses. Fast-tracking expansion would mean more cash burn.

• Analysts say that the airlines would take about three to four years before building a capacity of 20 aircraft, while they need to have have enough capital to run the operations in the meanwhile.

• The NCAP gives no direction on removing the negative fiscal regime on Indian airlines which includes sales tax on ATF and other taxation measures. These have not been effectively addressed.

• There has been no direction on improving institutional capability in the Ministry of Civil Aviation.

• The helicopter industry will structurally change with the announced measures, but its success is dependent almost entirely on DGCA, BCAS and infrastructure development.

• Environmental clearances will pose a big challenge for helipad development. Moving to a hybrid till in airport development will end uncertainty and promote investment.

• The regional aviation policy is well-intentioned, but private capital is unlikely to flow to loss-making projects.

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