7Th November 2020 Current Affairs Analysis by Iastoppers' Editorial Team | 2020-11-07 00:00:00

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7th November 2020 Current Affairs Analysis By IASToppers' Editorial Team | 2020-11-07 00:00:00

Polity & Governance Arbitration and Conciliation (Amendment) Ordinance, 2020

The Central government brought an ordinance to amend the arbitration law and ensure that stakeholder parties can seek an unconditional stay on enforcement of arbitral awards.

This will apply to cases where the ‘arbitration agreement or contract is induced by fraud or corruption’.

Need:

To address the concerns raised by stakeholders after the enactment of the Arbitration and Conciliation (Amendment) Act, 2019.

What has changed?

Until recently, an arbitration award was enforceable even if an appeal was filed against it in the court under Section 36 of the law.

However, the court could grant a stay on the award on conditions as it deemed fit.

Now, as per the amendment, if the award is being given on the basis of a fraudulent agreement or corruption, then the court will:

Not impose a condition to stay the award and Grant an unconditional stay as long as an appeal under Section 34 of the arbitration law is pending.

The ordinance also does away with the 8th Schedule of the Act that contained the necessary qualifications for accreditation of arbitrators. The provision will come into effect retrospectively from October 23, 2015.

Criticism:

The conditions prescribed in the law came in way of India getting the benefit of having foreign arbitrators.

The Arbitration and Conciliation (Amendment) Act, 2019:

The Arbitration and Conciliation (Amendment) Act, 2019 was introduced by the Ministry of Law and Justice. It seeks to amend the Arbitration and Conciliation Act, 1996 that contains provisions: To deal with domestic and international arbitration Defines the law for conducting conciliation proceedings

Key features:

Arbitration Council of India: The Act seeks to establish an independent body called the Arbitration Council of India (ACI) for the promotion of arbitration, mediation, conciliation and other alternative dispute redressal mechanisms. Composition of the ACI: The ACI will consist of a Chairperson who is either: 1. A Judge of the Supreme Court; or 2. A Judge of a High Court; or 3. Chief Justice of a High Court; or 4. An eminent person with expert knowledge in conduct of arbitration.

Other members will include an eminent arbitration practitioner, an academician with experience in arbitration, and government appointees.

Appointment of arbitrators: Under the act, the Supreme Court and High Courts may designate arbitral institutions, which parties can approach for the appointment of arbitrators.

For international commercial arbitration, appointments will be made by the institution designated by the Supreme Court. For domestic arbitration, appointments will be made by the institution designated by the concerned High Court. In case there are no arbitral institutions available, the Chief Justice of the concerned High Court may maintain a panel of arbitrators to perform the functions of the arbitral institutions. An application for appointment of an arbitrator is required to be disposed of within 30 days.

Relaxation of time limits: Further, arbitral awards, other than in international commercial arbitration, will need to be made within a period of 12 months from the date of completion of pleadings. Completion of written submissions: The Act requires that the written claim and the defence to the claim in an arbitration proceeding, should be completed within six months of the appointment of the arbitrators. Confidentiality of proceedings: The act provides that all details of arbitration proceedings will be kept confidential except for the details of the arbitral award in certain circumstances.

Disclosure of the arbitral award will only be made where it is necessary for implementing or enforcing the award.

[Ref: The Hindu]

Government Schemes & Policies Co-Lending Model Scheme

The Reserve Bank of India (RBI) launched a Co-Lending Model (CLM) scheme, recently.

CLM is a reformed version of the co-origination of loan scheme announced by the RBI launched in September 2018.

Key Details:

Under this scheme, banks can provide loans along with Non-Banking Finance Companies (NBFCs) to priority sector borrowers based on a prior agreement. All transactions (disbursements/ repayments) between the banks and NBFCs relating to CLM have

to be routed through an escrow account maintained with the banks, to avoid intermingling of funds. Escrow accounts are a financial instrument in which an asset or escrow money is held by a third party on behalf of two other parties that are in the process of completing a transaction. NBFCs shall be required to retain a minimum of 20% share of the individual loans on their books. The CLM shall not apply to foreign banks (including WOS) with less than 20 branches.

Customer Related Issues:

The NBFC shall be the single point of interface for the customers and shall enter into a loan agreement with the borrower. With regard to grievance redressal, a suitable arrangement must be put in place by the co- lenders to resolve any complaint registered by a borrower with the NBFC within 30 days. Failing which the borrower would have the option to escalate the same with the concerned Banking Ombudsman/Ombudsman for NBFCs or the Customer Education and Protection Cell (CEPC) in RBI.

Other Operational Aspects:

The co-lending banks and NBFCs shall maintain each borrower’s account for their respective exposures. The co-lenders shall establish a framework for monitoring and recovery of the loan, as mutually agreed upon. Both the banks and the NBFCs shall implement a business continuity plan to ensure uninterrupted service.

Expected outcomes:

Provide greater flexibility to the lending institutions. Improve the flow of credit to the unserved and underserved sector of the economy. Make available funds to the ultimate beneficiary at an affordable cost. Aid in increasing tackle credit growth.

What is the Priority Sector Lending (PSL)?

Through PSL, banks lend a particular portion of their funds to support economic activities of the poor and small businesses, who generally do not have access to affordable credit. Mandated by the Reserve Bank of India.

Priority Sector includes the following categories:

Agriculture Micro, Small and Medium Enterprises Export Credit

Education Housing Social Infrastructure Renewable Energy Startups Others

For more information on Priority Sector Lending, refer to https://www.iastoppers.com/articles/5th-september-2020-current-affairs-analysis-iastoppers

[Ref: Live Mint]

Issues related to Health & Education Academic Freedom Index 2020

India has scored considerably low in the International Academic Freedom Index (AFI) with a score of 0.352.

About AFI:

The index proposes a score for each country to help determine the level of academic freedom

its universities and academic centres enjoy. AFI was prepared by authors affiliated to: The Global Public Policy Institute The Friedrich-Alexander-Universität (FAU) Erlangen-Nürnberg Scholars at Risk Network V-Dem Project at the University of Gothenburg.

The index has a maximum value of 1 (indicating highest freedom) and the least is 0. Uruguay and Portugal topped the AFI, with scores of 0.971 each.

Components of AFI:

The AFI has eight components which are integrated into a Bayesian measurement model (a statistical tool): Freedom to research and teach Freedom of academic exchange and dissemination Institutional autonomy Campus integrity Freedom of academic and cultural expression Constitutional protection of academic freedom International legal commitment to academic freedom under the International Covenant on Economic, Social and Cultural Rights Existence of universities.

India Related Facts:

India has an AFI of 0.352. In the last five years, the AFI of India has dipped by 0.1 points. Countries like Pakistan, Brazil, Somalia etc have scored higher than India. India has not fared well in components: Institutional autonomy Campus integrity Freedom of academic and cultural expression Constitutional protection of academic freedom.

[Ref: The Hindu]

Activists urge FSSAI to reconsider planned fortification of rice, oil

Alliance for Sustainable and Holistic Agriculture (ASHA) called upon the Food Safety and Standards Authority of India (FSSAI) to reconsider its planned fortification of edible oil and rice, citing a number of negative outcomes.

Background: FSSAI is considering mandatory fortification of edible oil with Vitamin A and Vitamin D and rice with Vitamin B12, Iron and Folic Acid.

Protest by ASHA against FSSAI’s fortification:

Benefits of rice fortification were unproven. Many health risks associated with fortification. As per a research, fortification of rice with iron alone or in combination with other micronutrients made little or no difference in the risk of having anaemia or in vitamin A deficiency. Sometime may expose women to excess iron (when consuming excess fortified food) leading to illness.

Concerns regarding overdose due to fortifying rice. Would create an assured market for multinationals, which in turn would threaten the livelihoods of small rice and oil processing units across India. Would erode biodiversity, push monocultures and deplete soil health.

Suggestions given by ASHA (Alternatives of Food fortification):

Amrut Krishi: Food should be grown through Amrut Krishi, an organic farming technique that would lead to an increase in food nutrition. Breast feeding with proper latching techniques: This could make critical impacts on nutrition deficiency in the critical first 1,000 days. Kitchen gardens: A study in Maharashtra had shown how vegetables grown in organic kitchen gardens have been found to increase haemoglobin levels. Include less processed/unpolished rice in the public distribution system: This would make sure that rice bran, a rich source of various micronutrients reached people. Awareness generation: FSSAI should play a greater role in building awareness about the diverse grains, vegetables, fruits and other crops grown in India.

Note: To know more about fortification, refer IASTopper’s previous current affairs: https://www.iastoppers.com/articles/4th-november-2020-current-affairs-analysis

[Ref: Down To Earth]

Geophysical Phenomena Why did cyclones give October a miss?

The period between October to December is favourable for the development of cyclones in the Bay of Bengal and the Arabian Sea.

However, October 2020 passed without witnessing a cyclonic storm.

When do cyclones form and hit Indian coasts?

Out of about 80 cyclones formed around the world annually, five are formed in North Indian Ocean (Bay of Bengal and the Arabian Sea). Cyclones in the North Indian Ocean are bi-modal in nature i.e. occur during two seasons— April to June (pre-monsoon) and October to December (post-monsoon). The months of May and November remain the most conducive for the development of cyclones.

Have cyclones skipped October?

Cyclonic disturbances in the form of a well-marked low pressure, depression or a deep depression (weather systems with varying wind intensities ranging from 31 – 61 km/hr formed either over sea or land) are common in October. Ocean disturbances enter the Bay of Bengal from the South China seaside and head towards the Indian coast. The formation of one cyclone and two cyclonic disturbances in October is seen as normal, but this year, there was no system which intensified to form a cyclone.

Why were there no cyclone developments this year?

It is due to weak La Nina conditions along the equatorial Pacific Ocean. La Nina or cooler than normal sea surface temperatures over this region is prevailing since August 2020.

Because Madden Julian Oscillation (MJO) was positioned in a favourable phase, the low- pressure systems intensified maximum up to a deep depression. MJO is kind of an eastward-moving cyclic weather event along the tropics that influences rainfall, winds, sea surface temperatures and cloud cover. It is characterized by suppressed tropical rainfall mainly observed over the Indian and Pacific Ocean and typically recurs every 30 to 60 days.

Further, there was the high vertical wind shear (rapid changes in wind speed combined with direction or height of moving winds) noted between the different atmospheric levels. The vertical wind shear created due to significant wind speed difference observed between higher and lower atmospheric levels— prevented the low-pressure systems and depression from strengthening into a cyclone.

How do cyclones form?

Factors causing cyclone:

There are six parameters that lead to the formation of cyclones, merged into two groups: Dynamic Parameters and Thermodynamic parameters.

Dynamic Parameters

Rising sea surface temperatures. High humidity in the lower to middle levels of the Troposphere. Atmospheric instability (allowing moist air to form aiding cloud formation through the help of convection).

Thermodynamic Parameters

Impact area of Coriolis force so that low pressure can be developed. Location of low depression at 5 degrees North. Low vertical wind shear.

Key Facts:

India’s east and west coasts are prone to cyclones. The coastal districts of West Bengal, Odisha and Andhra Pradesh face maximum associated hazards—rain, heavy winds and storm surge.

[Ref: Indian Express]

Science & Technology EOS-01 satellite

The EOS-01 is scheduled to be launched shortly by India's Polar Satellite Launch Vehicle (PSLV-C49).

Major Highlights:

EOS-01 along with nine satellites from foreign countries will be launched from Satish Dhawan

Space Centre (SDSC) SHAR, Sriharikota, Andhra Pradesh. EOS-01 is an earth observation satellite intended for applications in agriculture, forestry and disaster management support. The customer satellites are being launched under a commercial agreement with NewSpace India Limited (NSIL), Department of Space.

About EOS-01:

EOS-01 is a Radar Imaging Satellite (RISAT) that will work together with RISAT-2B and RISAT-2BR1.

Aim: To provide all-weather round-the-clock service for high-resolution images.

Utility:

Land and forest mapping and monitoring. Mapping of resources like water or minerals or fishes. Weather and climate observations. Soil assessment. Geospatial contour mapping.

Radar imaging:

EOS-01, RISAT-2B and RISAT-2BR1 use synthetic aperture radars to produce high-resolution images of the land. Radar imaging is unaffected by weather, cloud or fog, or the lack of sunlight and can produce high-quality images in all conditions and at all times. Depending on the wavelength of the electromagnetic radiation used by the radar, different properties on land can be captured in the image. For example: A low wavelength signal can capture tree cover or vegetation. Higher wavelength signal can penetrate even dense tree cover to look at the contours of land beneath. EOS-01 and RISATs use X-band radars that operate at low wavelengths and considered best for monitoring of urban landscape, and imaging of agricultural or forest land. Also useful to meet military requirements.

Key Facts:

Different Earth observation satellites: Cartosat series: To provide data for land topography and mapping. Oceansat satellites: For observations over sea. Some INSAT-series, Resourcesat series, GISAT, Scatsat are also examples of earth observation satellites. A new variant of PSLV rocket will be used in the launch, where the last stage will separate, acquire its own orbit and be used as an orbital platform for other onboard instruments to perform experiments in space.

[Ref: Indian Express]

STPI invests in office, connectivity infra

The Software Technology Parks of India (STPI) is setting up office and connectivity infrastructure across several cities, offering small technology firms a ‘plug-and-play’ facility.

Key points:

STPI is expanding infrastructure in cities such as Darbhanga, Bhagalpur, Deoghar, Koraput, Kohima, Thiruvananthapuram and Kochi. Each of these locations would host seats covering 10,000-40,000 sq.ft. of IT grade infrastructure. Other cities in which work on incubation infrastructure was either completed or was in progress included Mohali, Srinagar, Prayagraj, Bengaluru, Vijayawada, Bhubaneshwar, Agartala, Jaipur, Ranchi, Kolkata and Nagpur.

Software Technology Parks of India:

It is an Autonomous Society set up by the Ministry of Electronics and Information Technology in 1991 for encouraging, promoting and boosting the Software Exports from India. It maintains internal engineering resources to provide consulting, training and implementation services.

Services cover Network Design, System Integration, Installation, Operations and maintenance of application networks and facilities in varied areas.

STPI has established a joint venture to set up an ‘Electropreneur Park’ with the India Electronics and Semiconductor Association (IESA).

Aimed at supporting 50 startups working on electronics product designing and development over the next five years.

It is also offering grants and incubation opportunities to start-ups as part of its Next Gen Incubation Scheme. In collaboration with the private sector, the agency is also aiming to raise funds for the scheme.

[Ref: The Hindu]

Key Facts for Prelims Gov Tech-Thon 2020

It is a virtual hackathon organized by IEEE (Institute of Electrical and Electronics Engineers), National Informatics Centre and Oracle, under Ministry of Electronics and Information Technology. Objective: To solve 5 problems provided by 3 central Ministries: Ministry of Agriculture and Farmers’ Welfare, Ministry of Road Transport and Highway and Ministry of Education.

Avadhanam

Recently, Vice President of India said that ‘Avadhanam’ has greatly contributed to the Telugu language’s glorious tradition. Avadhanam is a literary performance. It originated during the Vedic times as a Sanskrit literary process. In modern times, it is revived by poets in Telugu and Kannada. It involves solving tricky literary posers, improvising poems and tests a person's capability of performing such multiple tasks simultaneously. Thus, it exhibits an individual’s superior cognitive abilities such as powers of observation, memory, multitasking, and creativity.