InsightsDailyCurrentAffairs,01June2017

insightsonindia.com /2017/06/01/insightsdailycurrentaffairs01june2017/
InsightsIAS 201762

InsightsDailyCurrentAffairs,01June2017

Paper2Topic:ImportantInternationalinstitutions,agenciesandfora,theirstructure,mandate.

ADBandPNBsign$100millionloantofinanceSolarRooftopprojects

TheAsianDevelopmentBank(ADB)andthePunjabNationalBank(PNB)havesigneda$100millionloantobe
guaranteedbytheGovernmentofIndiathatwillfinancelargesolarrooftopsystemsonindustrialandcommercial
buildingsthroughoutIndia.ThePNBwillusetheADBfundstomakefurtherloanstovariousdevelopersandend
userstoinstallrooftopsolarsystems.

Thisisthefirsttrancheloanofthe$500millionmultitranchefinancefacilitySolarRooftopInvestmentProgram
(SRIP)approvedbyADBin2016.Thefinancingincludes$330millionfromADBsordinarycapitalresources
and$170millionfromthemultidonorCleanTechnologyFund(CTF)administeredbyADB.Thefirsttranche
loanof$100millionwouldbefinancedentirelyfromtheCTF.

Background:

TheentireSolarRooftopInvestmentProgramwillcost$1billion,
inclusiveofADB$500millionfunding,andtheprojectsfinanced
undertheprogramwillinstallsolarrooftopsystemofaround1GW
capacity.Thiswillcontributetotheclimatechangegoalof
reducinggreenhousegasemissionsbyabout11milliontonsof
carbondioxideequivalentoverthetypical25yearlifetimeof
rooftopsolarsystems.TheprojectisalignedwiththegoalsetbyGovernmentofIndiatoincreasethecountrys
solarrooftopcapacityby40GWby2022.

KnowaboutADB:

ADB,basedinManila,isdedicatedtoreducingpovertyinAsiaandthePacificthroughinclusiveeconomicgrowth,
environmentallysustainablegrowth,andregionalintegration.Establishedin1966,itisownedby67members48
fromtheregion.
 ThebankadmitsthemembersoftheUnitedNationsEconomicandSocialCommissionforAsiaandthePacific
(UNESCAP,formerlyknownastheUnitedNationsEconomicCommissionforAsiaandtheFarEast)andnon
regionaldevelopedcountries.
ItoffersbothHardLoansandSoftloans.TheADBoffershardloansfromordinarycapitalresources(OCR)
oncommercialterms,andtheAsianDevelopmentFund(ADF)affiliatedwiththeADBextendssoftloansfrom
specialfundresourceswithconcessionalconditions.
ADBfocusesonfivecoreareasofoperations:infrastructuretheenvironment,includingclimatechange
regionalcooperationandintegrationfinancesectordevelopmentandeducation.

Sources:pib.

Paper3Topic:IndianEconomyandissuesrelatingtoplanning,mobilizationofresources,growth,
developmentandemployment.

Indiaisnolongerthefastestgrowingeconomy

Accordingtothelatestdata,Indialostitsfastestgrowingmajoreconomytaginthefourthquarterof201617,with
GDPgrowthcominginat6.1%comparedwithChinas6.9%inthesameperiod.

Keyfacts:

GDPofIndiagrew7.1%inthefinancialyear201617,slower
thanthe8%registeredin201516.Grossvalueadded(GVA)
growthwas6.6%for201617and5.6%inthefourthquarter,
comparedwith7.9%in201516and8.7%inQ4ofthatyear.
Thedataindicatethatpostdemonetisationtherehasbeena
slowdown.TheGDPgrowthrateisslightlyhigher(thanGVA
growth)becauseofamorethanproportionateincreasein
indirecttaxnetofsubsidies.ButtheGDPalsoshowsa
reductioninQ3andQ4numberscomparedwiththe
beginningoftheyear.Sodemonetisationhasclearlyhadatangibleandadverseimpact.
Lookingdeeper,GVAgrowthslowedinalmosteverysectorinQ4of201617comparedtothegrowth
witnessedinthecorrespondingperiodofthepreviousyear.

Sources:thehindu.

 Paper3Topic:Investmentmodels.

PlanforIndianSEZsinBangladeshhitsbump

IndiasplantostepupinvestmentsinBangladeshbysettingupthreemegaSpecialEconomicZones(SEZ)
exclusivelyforIndiancompaniesinthelattersterritoryhashitamajorhurdle.

Whatstheissue?

Indiancompanieshavecitedvariousconstraintsincluding
inadequateinfrastructureandlackofuninterruptedpowersupply
atMongla,BheramaraandMirsaraithesitesinBangladeshfor
theproposedIndianSEZs.Forbetterconnectivityandbusiness
prospects,theysoughtalternativesitesclosetotheChittagong
PortandthecapitalcityofDhakasimilartothosebeen
allocatedbyBangladeshforChineseSEZs.

Background:

IndiaandBangladeshhadinkedaMemorandumof
Understanding(MoU)inJune2015duringPrimeMinisterNarendraModisvisittoBangladeshforcooperation
onestablishingIndianSEZsinBangladesh.

TheplanwastodevelopIndianSEZsatMirsarai(1,005acres),Bheramara(about480acres)andMongla(200
acres).TheconstructionoftheseSEZsandIndianinvestmentinthezonesweretobefacilitatedthrough
concessionalLineofCreditextendedbyIndiatoBangladesh.

WhatisaSEZ?

ASpecialEconomicZone(SEZ)isageographicalregionthathaseconomiclawsmoreliberalthanacountrystypical
economiclaws.Theyareestablishedwithanaimtopurportdevelopment,promoterapideconomicgrowthby
providingtaxandbusinessincentivesforattractingforeigntechnologyalongwithinvestment.Thesearenotmerely
SEZsbutmaybecalledasfavoriteInvestmentdestinationsforforeignestablishments.Suchunitswouldbefuture
sourcesofemployment,hubsoflatesttechnologiesandequippedwiththebestinfrastructure.

TheincentivesandfacilitiesofferedtotheunitsinSEZsforattractinginvestmentsintotheSEZs,includingforeign
investmentinclude:

Dutyfreeimport/domesticprocurementofgoodsfordevelopment,operationandmaintenanceofSEZunits
100%IncomeTaxexemptiononexportincomeforSEZunitsunderSection10AAoftheIncomeTaxActfor
first5years,50%fornext5yearsthereafterand50%oftheploughedbackexportprofitfornext5years.
Exemptionfromminimumalternatetax.
 ExternalcommercialborrowingbySEZunitsuptoUS$500millioninayearwithoutanymaturityrestriction
throughrecognizedbankingchannels.
ExemptionfromCentralSalesTax.
ExemptionfromServiceTax.
SinglewindowclearanceforCentralandStatelevelapprovals.
ExemptionfromStatesalestaxandotherleviesasextendedbytherespectiveStateGovernments.

Sources:thehindu.

Paper3Topic:ScienceandTechnologydevelopmentsandtheirapplicationsandeffectsineveryday
lifeAchievementsofIndiansinscience&technologyindigenizationoftechnologyanddevelopingnew
technology.

FirstScorpenesubmarineKalvaritobecommissionedbyJuly

ThefirstofthesixScorpenesubmarinesKalvari,beingbuiltinIndiaundertechnologytransferislikelytojointhe
NavybyendofJuly.Kalvariisgoingthroughitsfinalphaseoftrials.

WhatyouneedtoknowaboutINSKalvari?

Kalvariisnamedafteradeepseatigershark.TheScorpeneis
partoftheambitiousProject75ofIndianNavyssubmarine
programme.

Thistypeofsubmarineisdesignedtooperateinalltheatres
includingtheTropics.Itcanundertakevarioustypesof
missionsthatareundertakenbyanymodernsubmarine
includingantisurfacewarfare,antisubmarinewarfare,mine
laying,intelligencegathering,surveillance,etc.
Withitssuperiorstealthcapability,itcanlaunchacrippling
attackontheenemyusingprecisionguidedweapons.The
attackcanbelaunchedwithtorpedoes,aswellastubelaunchedantishipmissiles,whilstunderwateroron
surface.

Background:

SixScorpenesubmarinesarebeingbuiltunderProject75byMazgaonDocksLimited(MDL)withtechnology
transferfromFrance.AllthesixsubmarinesunderthisprojectswillbeindigenouslybuiltatMumbaisMazagaon
DockyardLtd.Theseattacksubmarineshavedieselpropulsionandanadditionalairindependentpropulsion.

Sources:thehindu.

Paper2Topic:Governmentpoliciesandinterventionsfordevelopmentinvarioussectorsandissues
arisingoutoftheirdesignandimplementation.

Preventivedetentionnoquickfix

SupremeCourtofIndia,inacase,hasobservedthatpreventivedetentionofapersonbyaStateafterbrandinghim
agoondamerelybecausethenormallegalprocessisineffectiveandtimeconsumingincurbingtheevilhespreads
isillegal.

ThejudgmentdealtwiththecaseofaseedmanufacturerinTelanganawhowastakenintopreventive
detentionbytheauthoritiesontheallegationthatheissellingspuriouschilliseedstopoorfarmers.

Importantobservationsmadebythecourt:

Detentionofapersonwasaseriousmatteraffectingthe
libertyofthecitizen.Hence,preventivedetentioncannotbe
resortedtowhensufficientremediesareavailableunderthe
generallawsofthelandforanyomissionorcommission
undersuchlaws.
Theorderofpreventivedetention,thoughbasedonthe
subjectivesatisfactionofthedetainingauthority,is
nonethelessaseriousmatter,affectingthelifeandlibertyof
thecitizenunderArticles14,19,21and22ofthe
Constitution.Thepowerbeingstatutoryinnature,itsexercise
hastobewithinthelimitationsofthestatute,andmustbe
exercisedforthepurposethepowerisconferred.
Ifthepowerismisused,orabusedforcollateralpurposes,andisbasedongroundsbeyondthestatute,takes
intoconsiderationextraneousorirrelevantmaterials,itwillstandvitiatedasbeingincolourableexerciseof
power.

Whatyouneedtoknowaboutpreventivedetention?

PreventiveDetentionisthemostcontentiouspartoftheschemefundamentalrightsintheIndianconstitutions.The
Article22(3)oftheIndianconstitutionprovidesthatifapersonisarrestedordetainedunderalawprovidingfor
preventivedetention,thentheprotectionagainstarrestanddetentionunderArticle22(1)and22(2)shallnotbe
available.

ThegroundsforPreventivedetentionare:

Securityofstate.
Maintenanceofpublicorder.
Maintenanceofsuppliesandessentialservicesanddefence.
ForeignaffairsorsecurityofIndia.

Sources:thehindu.

FactsforPrelims:

SPARROWITS:

SmartPerformanceAppraisalReportRecordingOnlineWindowwasrecentlytoenabletheIndianTrade
Service(ITS)officerstofilltheirAnnualPerformanceAppraisalReport(APAR)onlinefortheyear201617
onwards.
TheAPARswouldbegeneratedandtransmittedonlinetotheconcernedofficersforfillingupoftheself
appraisal.TheofficercanthensubmittheselfappraisalonlinethroughDigitallySignedSignature(DSC)or
throughEsign.
ThesubsequentprocessesofreportingandreviewingwouldalsobedoneonlinebytheReportingand
ReviewingOfficerbyusingDSCorEsign.Thetimelineshavebeendrawnupforeachstageoftheprocess.
TheentireprocessoffillingupofAPARwouldhavetobecompletedby31stDecemberandnoremarkscanbe
addedafterthatdate.

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