CURRENT AFFAIRS – 24/11/2023

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CURRENT AFFAIRS – 24/11/2023

CURRENT AFFAIRS – 24/11/2023

Governor holds no veto power over Bills

(General Studies- Paper II)

Source :TH

The Supreme Court has provided a significant ruling on the power of a Governor to withhold assent to Bills forwarded by a State Legislature.

The case involves a petition filed by the Punjab government against its Governor’s decision to withhold crucial Bills.
The judgment has broader implications and is likely to impact similar cases, including one in Tamil Nadu where the Governor withheld assent to 10 Bills.

Key Highlights

Governor’s Obligation to Send Bill Back for Reconsideration:
- The Supreme Court emphasized that if a Governor decides to withhold assent to a Bill, they must send it back to the State Legislature “as soon as possible” with a message for reconsideration.
- The court clarified that the Governor has no discretion if the State Assembly reiterates the Bill “with or without amendments.”
- In such cases, the Governor is obliged to give assent, and the final decision rests with the legislature alone.
- The judgment stressed that the phrase “as soon as possible” in the constitutional provision implies a mandate for prompt action.
- Failure to promptly send the Bill back for reconsideration is inconsistent with this constitutional imperative.
Governor’s Role in the Legislative Process:
- The court highlighted that the Governor, as the unelected Head of State, cannot act as a veto on the functioning of a duly elected legislature by merely withholding assent without following the prescribed procedure.
- The Governor is considered a part of the legislature and is bound by the constitutional regime.
- The judgment underscored the importance of upholding fundamental principles of a constitutional democracy based on a Parliamentary pattern of governance.
- Allowing a Governor to indefinitely withhold assent without further recourse was deemed contrary to these principles.

MGNREGS audit crosses 50% local bodies in just six States

(General Studies- Paper II)

Source :TH

Out of the 34 States and Union Territories in India, only six have completed social audits of works done under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in more than 50% of gram panchayats.

Kerala stands out as the only state that has covered 100% of gram panchayats.
Social audit serves as an anti-corruption mechanism within the MGNREGA framework.

Key Highlights

Current Status of Social Audits:
- According to the Management Information System (MIS) on Social Audit maintained by the Union Ministry of Rural Development, as of November 10, most states are lagging in completing social audits.
- High rates of corruption have been a primary concern within the MGNREGS.
- Social audit is identified as an intrinsic anti-corruption mechanism in the Act.
- Section 17 of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) mandates the gram sabha to monitor the execution of works under the scheme.
State-wise Performance:
- Kerala stands out as the only state to achieve a 100% coverage of gram panchayats through social audits.
- Only six states have completed social audits in more than 50% of gram panchayats.
- Each state has social audit units designed to operate independently of implementing authorities.
- The auditing standards were laid down by the Comptroller and Auditor General on December 19, 2016.
Funding for Social Audit Units:
- Social Audit Units are entitled to funds equivalent to 0.5% of the MGNREGA expenditure incurred by the state in the previous year.
Social audits involve quality checks of infrastructure created under MGNREGA, scrutiny for financial misappropriation in wages, and examination of procedural deviations.
Variability in State Performance:
- Kerala is the only state to achieve 100% coverage in social audits of gram panchayats under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
- Bihar (64.4%), Gujarat (58.8%), Jammu and Kashmir (64.1%), Odisha (60.42%), and Uttar Pradesh (54.97%) are the only other states crossing the 50% mark.
- Only Telangana (40.5%), Himachal Pradesh (45.32%), and Andhra Pradesh (49.7%) have covered 40% or more villages.
- Among poll-bound states, social audit coverage is notably low, including Madhya Pradesh (1.73%), Mizoram (17.5%), Chhattisgarh (25.06%), and Rajasthan (34.74%).
The social audit issue is consistent irrespective of the political party in power across the country.
Centre’s Warnings and State Complaints:
- The Centre has repeatedly warned states that funds under MGNREGS will be withheld if social audits are not conducted regularly.
- States argue that audit delays occur because the Centre does not release funds for social audit units, which operate independently of state governments.
- Recurrent complaints are reported regarding delayed salaries for village-level auditors.
Kerala’s Unique Approach:
- Kerala stands out by holding periodic Social Audit Public Hearings (JanakeeyaSabhas) at the panchayat level, allowing audit reports to undergo close public scrutiny.
- In other states, public scrutiny usually occurs only at the block level.
- Kerala emphasizes a healthy culture of people’s participation in governance as a contributing factor to the success of their social auditing mechanism.

About Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)

The MGNREGS, officially known as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), was launched on February 2, 2006.
The Ministry of Rural Development is responsible for the implementation of MGNREGS at the national level.
MGNREGS aims to provide livelihood security in rural areas by guaranteeing at least 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
The budget for MGNREGS is allocated annually by the central government.
- The scheme is demand-driven, meaning that the funds allocated are based on the actual demand for employment generated by rural households.
Key Objectives and Features:
- Employment Guarantee:
  - Ensures at least 100 days of wage employment per household in a financial year.
  - Employment opportunities are to be provided within 5 km of an applicant’s residence.
  - If work is not provided within 15 days of applying, applicants are entitled to an unemployment allowance.
- Legal Entitlement:
  - Provides a legal guarantee for rural households to demand employment.
- Focus on Unskilled Manual Work:
  - The emphasis is on labor-intensive work, typically related to water conservation, drought-proofing, and rural infrastructure development.
- Women’s Participation:
  - Promotes the active participation of women in the workforce and mandates that at least one-third of the beneficiaries should be women.
- Social Inclusion:
  - Aims to address issues of social inclusion by ensuring that employment opportunities are provided to the disadvantaged sections of society, including Scheduled Castes and Scheduled Tribes.
- Decentralized Planning:
  - The implementation of the scheme involves decentralized planning at the gram panchayat level, with the gram sabha playing a crucial role in monitoring and execution.
  - The involvement of contractors is prohibited in the implementation of MGNREGA.

In Image: Dashboard of NREGA as on 23^rd November 2023.

Justice Fathima Beevi, the first woman judge in Supreme Court is no more

(General Studies- Paper I)

Source :TH

Justice M. FathimaBeevi, who passed away at the age of 96, had a groundbreaking career marked by numerous firsts and achievements in the Indian judiciary.

Key Highlights

In 1950, she became the first student to complete a degree in law with full marks in all subjects.
Eight years later, she secured the top position in a competitive exam conducted by the Public Service Commission, entering the judicial services as a munsiff.
Breaking barriers, she became the first woman member of the country’s Income Tax Appellate Tribunal.
In 1983, Justice FathimaBeevi achieved another milestone by becoming the first Muslim woman to enter the higher judiciary as a judge with the Kerala High Court.
She went on to become the first woman judge in the Supreme Court of India in 1989.

L&T Finance signs financing pact with ADB for 5 million

(General Studies- Paper II and III)

Source :TH

L&T Finance, a Non-Banking Financial Company (NBFC), has signed a financing agreement with the Asian Development Bank (ADB) for $125 million.

The funding includes a $125 million loan from ADB, with an additional $125 million co-financing from other development partners through syndication.

Key Highlights

Focus on Rural and Peri-Urban Areas:
- The financing aims to support rural and peri-urban areas in India, with a particular emphasis on women borrowers.
- At least 40% of the funds are allocated for women borrowers, with the remainder supporting farmers, Micro, Small and Medium-sized Enterprises (MSMEs), and loans for new two-wheeled vehicles.
Long-Term Loan for Diversifying Funding Sources:
- Describes the ADB loan as part of L&T Finance’s strategy to diversify funding sources.
- Recognizes the profound impact of financial inclusion on the communities served by the company, especially in underserved and lagging states in India.
Empowering Individuals and Economic Resilience:
- Aims to act as a catalyst for empowering individuals, particularly women, farmers, and MSMEs, fostering economic resilience.
- Emphasizes the commitment to being a driver of economic growth and financial inclusion in India’s underserved regions.

About Asian Development Bank

The Asian Development Bank (ADB) was established on December 19, 1966.
Headquartered in Mandaluyong, Metro Manila, Philippines.
Mission:
- ADB’s primary mission is to promote social and economic development in the Asia-Pacific region.
Objectives:
- Address poverty and support poverty reduction initiatives.
- Foster sustainable economic growth.
- Contribute to regional integration and cooperation.
- Ensure environmental sustainability and resilience to climate change.
- Promote private sector development and investment.
Membership:
- ADB started with 31 founding members and has expanded to include 68 members.
- Members comprise countries from the UN Economic and Social Commission for Asia and the Pacific (UNESCAP) and non-regional developed countries.
Governance and Structure:
- ADB’s governance structure includes a Board of Governors, Board of Directors, and a President.
- It is modeled closely on the World Bank.
- The weighted voting system ensures that member countries with higher capital subscriptions have a greater say in decision-making.
Shareholding:
- The shareholding structure reflects the financial contributions of member countries.
- Japan and the United States hold the largest share proportion, each at 15.571%.
- Other major shareholders include China, India, and Australia.

About United Nations Economic and Social Commission for Asia and the Pacific

UNESCAP is one of the regional commissions of the United Nations, focusing on the Asia-Pacific region.
UNESCAP was established on December 28, 1947.
Its mandate is to promote regional cooperation and integration, support sustainable development, and address economic and social challenges in the region.
The main headquarters is in Bangkok, Thailand.
UNESCAP has 53 member countries and 9 associate members.
- Membership includes countries from the Asia-Pacific region.

Why India needs to pay closer attention to FDI trends?

(General Studies- Paper III)

Source :The Indian Express

In 2021-22, India experienced a record high of $84.8 billion in total FDI flows, but in the subsequent year, there was a notable decline of 16%, totaling $71 billion.

The disaggregated data reveals a deeper insight into this decline, emphasizing the need for a closer examination.

Key Highlights

Sector-wise Analysis:
- Several sectors witnessed a significant decrease in FDI flows between 2021-22 and 2022-23.
- The computer software and hardware sector saw a drop from $14.4 billion to $9.3 billion, the automobile industry declined from $6.9 billion to $1.9 billion, construction (including infrastructure activities) decreased from $3.2 billion to $1.7 billion, and metallurgical industries declined from $2.2 billion to $219 million.
- In contrast, the services sector, including financial, banking, and insurance services, exhibited healthy FDI flows, rising from $7.1 billion to $8.7 billion.
Country-wise and State-wise Trends:
- Data on the investing country indicates fluctuations, with FDI flows falling from countries like Mauritius, US, Netherlands, Cayman Islands, and Germany, but rising from Singapore, UAE, and Cyprus.
- Among the major states attracting investments, FDI flows witnessed a decline between 2021-22 and 2022-23 and in the first six months of the ongoing year.
Global FDI Scenario:
- The global context shows a 12% decline in global FDI in 2022, totaling $1.3 trillion, primarily influenced by lower volumes of financial flows and transactions in developed countries.
- In contrast, FDI in developing economies experienced a marginal rise, underscoring the importance of understanding global trends.
Policy Implications:
- Given India’s potential as a major beneficiary of the China plus one strategy, policymakers are urged to closely monitor these FDI trends.
- Various factors, including the global and domestic macroeconomic environment, regulatory policies, and political stability, influence capital flows into countries, emphasizing the need for strategic attention to foster a conducive investment climate.

What is China plus one strategy?

The “China plus one” strategy refers to a business approach adopted by companies seeking to diversify their manufacturing or sourcing activities beyond China.
This strategy emerged as a response to various factors, including rising labour costs in China, geopolitical uncertainties, concerns about supply chain resilience, and the desire to access new markets.
Companies employing the China plus one strategy typically maintain their existing operations in China but also establish additional production or sourcing facilities in other countries.
The goal is to reduce dependency on a single location, particularly China, and spread the risk associated with geopolitical, economic, or operational challenges.

Understanding FDI

FDI stands for Foreign Direct Investment. It refers to the investment made by a foreign entity (individual, business, or government) into the economy of another country with the intention of establishing a lasting interest in the country of investment.
This lasting interest typically involves obtaining a significant degree of influence or control over the management and operations of a business enterprise in the host country.
FDI involves acquiring an ownership stake (equity) in a business enterprise in the host country.
This can be achieved through activities such as mergers and acquisitions, joint ventures, or the establishment of wholly-owned subsidiaries.
FDI holds several strategic advantages:
- Capital Inflows: FDI provides a source of foreign capital that can be used to finance development projects, enhance productivity, and contribute to economic growth.
- Technology Transfer: Multinational corporations (MNCs) investing in developing countries often bring advanced technologies and know-how, fostering technological advancements in local industries.
- Employment Generation: FDI projects can create job opportunities, reducing unemployment and poverty in the host country.
- Global Integration: Attracting FDI helps developing countries integrate into the global economy, promoting trade and economic openness.
- Diversification: FDI allows for the diversification of the industrial base, reducing dependence on specific sectors and enhancing economic resilience.

What is the new Investor Risk Reduction Access platform?

(General Studies- Paper III)

Source :The Indian Express

The Investor Risk Reduction Access (IRRA) platform has been introduced to serve as a safety net for investors, offering a solution in case of technical glitches or disruptions faced by trading members or stock brokers registered with the Securities and Exchange Board of India (SEBI).

Jointly developed by major stock exchanges, including BSE, NSE, NCDEX, MCX, and MSE, the IRRA platform aims to mitigate risks for investors during market uncertainties.

Key Highlights

Launch and Purpose: Enhancing Investor Safety
- SEBI Chairperson MadhabiPuriBuch launched the IRRA platform, emphasizing its design to minimize risks for investors participating in the market.
- The platform is not intended for initiating new positions or orders but focuses on enabling investors to close open positions and cancel pending orders during disruptions caused by technical glitches or unforeseen outages at the trading member’s end.
- The IRRA platform addresses the increasing reliance on technology in the securities market, acknowledging the rise in technical glitches that can lead to disruptions in trading services and subsequent investor complaints.
- By providing investors with a mechanism to square off their open positions and cancel pending orders, the IRRA platform acts as a contingency service.
- This becomes particularly crucial during periods of market volatility when investors face challenges in closing positions due to non-availability of regular avenues.
Need for IRRA: Responding to Technological Dependencies
- The necessity for the IRRA platform arose from the growing dependence on technology in the securities market, leading to instances of glitches in trading members’ systems.
- These glitches, at times, result in disruptions in trading services, leaving investors with open positions vulnerable to non-availability of avenues for closing their positions.
- Recognizing this challenge, SEBI announced the development of a contingency service, which materialized in the form of the IRRA platform.
- The platform aligns with SEBI’s commitment to investor protection and market integrity in the face of technological uncertainties.
Trading members can invoke the IRRA platform when facing technical glitches impacting their ability to serve clients across exchanges.
This applies to disruptions at both the primary site and the disaster recovery site, where relevant.
Stock exchanges can proactively monitor parameters such as connectivity, order flow, and social media posts.
- Exchanges have the authority to initiate the IRRA service suo moto, independent of a trading member’s request.
- This activation occurs in case of a trading member’s disruption across all exchanges.

About Securities and Exchange Board of India (SEBI)

The Securities and Exchange Board of India (SEBI) is the regulatory body governing the securities and commodity markets in India.
Established on April 12, 1992, through the SEBI Act, SEBI operates as an autonomous statutory body.
Its primary objective is to protect the interests of investors in securities and promote the development and regulation of the securities market.

What is a Stock Exchange?

A stock exchange is a financial marketplace where buyers and sellers trade various financial instruments such as stocks, bonds, commodities, and derivatives.
The primary function of a stock exchange is to provide a platform for the buying and selling of securities, enabling companies to raise capital and investors to participate in the financial markets.

Major Stock Exchanges in India:

Bombay Stock Exchange (BSE):
- Established: BSE was established in 1875, making it the oldest stock exchange in Asia.
- Location: Mumbai, Maharashtra.
- Key Indices: Sensex (Sensitive Index) is the benchmark index, representing the performance of the 30 largest and most actively traded stocks on BSE.
National Stock Exchange (NSE):
- Established: NSE was established in 1992 as the first electronic stock exchange in India.
- Location: Mumbai, Maharashtra.
- Key Indices: Nifty 50 is the flagship index, comprising the 50 largest and most liquid stocks listed on NSE.
National Commodity and Derivatives Exchange (NCDEX):
- Established: NCDEX was established in 2003 as a commodity exchange.
- Location: Mumbai, Maharashtra.
- Key Offerings: NCDEX facilitates trading in agricultural commodities like wheat, soybean, and spices through futures and options contracts.
Multi Commodity Exchange (MCX):
- Established: MCX was established in 2003 as a commodity exchange.
- Location: Mumbai, Maharashtra.
- Key Offerings: MCX is a leading commodity derivatives exchange, allowing trading in commodities such as gold, silver, crude oil, and natural gas.
Metropolitan Stock Exchange of India (MSE):
- Established: MSE was originally established as MCX Stock Exchange (MCX-SX) in 2008 and later renamed MSE in 2012.
- Location: Mumbai, Maharashtra.
- Key Indices: MSE launched its flagship index, SX40, which represents the performance of the top 40 stocks listed on MSE.

How farm fires are counted?

(General Studies- Paper III)

Source :The Indian Express

The data on farm fires, particularly paddy residue fires, across six states in India is collected and reported by the Indian Agricultural Research Institute’s Consortium for Research on Agroecosystem Monitoring and Modeling from Space (CREAMS) Laboratory.

The states covered by the data include Punjab, Haryana, Uttar Pradesh, Delhi, Rajasthan, and Madhya Pradesh.

Key Highlights

Between September 15 and November 23, a total of 55,725 farm fires were recorded across the six states.
Punjab recorded the highest number of farm fires, with 36,323 fires during the specified period.
November 5 saw the highest single-day count in Punjab, with 3,230 fires.
Data Details Provided:
- The daily bulletin provides a district-wise breakdown of farm fire incidents, comparative figures from previous years (from 2020 onwards), exact locations of recorded fires, the satellite used, time of recording, and the intensity or fire power of the incidents.
The CREAMS Laboratory was established in 2013 with the primary purpose of monitoring crop conditions against extreme climatic events.
Its role expanded in 2018 when the Indian government initiated a central sector scheme on crop residue management, prompting the laboratory to monitor farm fires.
Satellite Sensors Used:
- Three sensors aboard NASA satellites are employed to collect the data:
  - VIIRS aboard the Suomi NPP satellite, and two MODIS sensors aboard the Terra and Aqua satellites.
- Each satellite passes over the Indian subcontinent twice daily, at different times.
- Terra passes over around 10 to 10:30, Aqua between 12:30 and 1:30, and Suomi NPP around 1:30 to 3:30, with a repeat every 12 hours.
- VIIRS has the highest resolution, providing more detailed events, while the two MODIS sensors have a coarser resolution.
- Sentinel-2 satellites from the European Space Agency are used to map burnt areas.
- This mapping is conducted towards the end of the season, indicating the planted area, burnt area, and their locations in hectares.
Data Reception and Processing:
- The Indian Agricultural Research Institute (IARI) receives satellite data at its ground station and from the National Remote Sensing Centre.
- Farm fires are monitored continuously throughout the year.
Before 2021, there was no standardized protocol for monitoring farm fires.
- Different methodologies were employed, leading to variations in recorded events.
- IARI and state centers used different approaches.
Introduction of Standard Protocol:
- In 2021, the Commission for Air Quality Management (CAQM) announced the adoption of a “standard protocol” for monitoring farm fires using satellite data.
- IARI reprocessed 2020 data using this protocol, and comparative data is available from 2020 onwards.
Role of Punjab Remote Sensing Centre:
- The Punjab Remote Sensing Centre also releases farm fire data for Punjab, utilizing information from the same satellites and following the standard protocol.
- Paddy crop residue fires are distinguished from other types by first identifying areas under paddy cultivation.
- Paddy has a distinct reflectance signature, and the presence of water in the background further differentiates it from other crops.
- The satellite provides land surface temperature for active fires, helping confirm the occurrence of paddy fires.
Fire Intensity Recording:
- Fire intensity, expressed as energy emitted per unit area per unit time, is recorded to provide insights into the amount of residue burned.
- Higher intensity indicates a more significant amount of residue combustion.
- It is calculated based on the increase in temperature compared to the surrounding areas.
- Recording fire intensity is crucial as detection is not solely based on the area but on the amount of residue burned.
- Higher intensity signifies more extensive residue burning, offering valuable information for analysis.
Post-Bulletin Actions:
- The prepared bulletin is disseminated to central and state-level agencies, including the CAQM, Ministry of Agriculture, and state agriculture departments in Punjab, Haryana, Uttar Pradesh, Rajasthan, and Madhya Pradesh.
- Authorities utilize the data to make informed decisions on necessary measures.
- It helps identify burning “hotspots” or districts requiring focused interventions, such as ensuring the availability of machinery.
- Punjab and Haryana have set reduction targets for farm fire numbers based on satellite data for different districts.
Limitations of the Data:
- Satellite Availability:
  - The number of satellites in operation affects data capture frequency. More satellites provide more passes, enabling the capture of a higher number of events.
  - Private sector satellite constellations with increased data frequency are emerging.
- Climatic Conditions:
  - The Earth’s atmosphere influences readings, as sensors work like an infrared thermometer from a distance.
  - Absorption of the signal occurs due to water vapour and clouds, impacting data accuracy.
  - Persistent clouds hinder data acquisition, and sensors can only detect the top of the cloud.
- Data Delay and Calibration:
  - Instances of data delay may occur, such as delays in receiving data from satellites.
  - Sensor recalibration may be required due to changes in satellite orbit.