ECONOMY

Industrial Relations Code Bill, 2019

GS PAPER - 03 ECONOMY - Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context :

The Minister of State (I/C) for Labour and Employment introduced The Industrial Relations Code Bill, 2019 in the Lok Sabha.

Industrial Relations Code Bill, 2019 :

The code proposes to amalgamate The Trade Unions Act, 1926, The Industrial Employment (Standing Orders) Act, 1946, and The Industrial Disputes Act, 1947.
It is the third out of four labour codes that have got approval from the cabinet.

Key Features :

Seeks to allow companies to hire workers on fixed-term contract of any duration.
Has retained the threshold on the worker count at 100 for prior government approval before retrenchment, but it has a provision for changing ‘such number of employees’ through notification.
Provides setting up of a two-member tribunal (in place of one member) wherein important cases will be adjudicated jointly and the rest by a single member, resulting speedier disposal of cases.
Has vested powers with the government officers for adjudication of disputes involving penalty as fines.
Introduces a feature of ‘recognition of negotiating union’ under which a trade union will be recognized as sole ‘negotiating union’ if it has the support of 75% or more of the workers on the rolls of an establishment.
As several trade unions are active in companies, it will be tough for any one group to manage 75% support, hence taking away their negotiating rights. In such a case, a negotiating council will be constituted for negotiation.
Underlines that fixed-term employees will get all statutory benefits on a par with the regular employees who are doing work of the same or similar nature.
Under the code, termination of service of a worker on completion of tenure in a fixed-term employment will not be considered as retrenchment.
Proposes setting up of a “re-skilling fund” for training of retrenched employees. The retrenched employee would be paid 15 days’ wages from the fund within 45 days of retrenchment.

Significance :

The Indian economy grew at 5% in the June quarter, a six-year low, while the country’s factory output shrank for the second straight month at 4.3% in September, recording its worst show since the present series was launched in April 2012.
The ease of compliance of labour laws will promote the setting up of more enterprises, thus catalysing the creation of employment opportunities in the country.

Source :- PIB ; The Hindu

Govt. extends 15th finance panel term

GS PAPER - 03 ECONOMY- Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context :

The Union Cabinet has approved the extension of the term of the 15th Finance Commission setting 30th October,2020 as the new deadline.

Finance Commission :

The Finance Commission is constituted by the President under Article 280 of the Constitution mainly to give its recommendations on distribution of tax revenues between the Union and the States and amongst the States themselves.
The Commission is appointed every five years.It consists of a Chairman and four other members.
The First Finance Commission was constituted in 1951 under the chairmanship of Shri K.C. Neogi.

Functions or Duties :

The Commission makes recommendations to the President of India on the distribution of tax proceeds between the Union and the States and the share of each state.
The Commission also decides the principles that govern the payment of grants-in-aid to states from the Consolidated Fund of India.
The President of India can also refer any other matter to the Finance Commission in the interest of building a sound financial system.

Members of Finance Commission :

The Finance Commission has a chairman and four members appointed by the President.
The Chairman of the Commission is selected from among persons who have had experience in public affairs.
The four other members are selected from among persons who
- are or have been or are qualified to be appointed as Judges of the High Court; or
- have special knowledge of the finances and accounts of Government or
- have had wide experience in financial matters and in administration or
- have special knowledge of economics.

Report of Finance Commission :

Article 281 of the Constitution says that,the President of India is required to cause laying of the Finance Commission report before each House of Parliament along with an explanatory note and the action taken by the government on the Commission’s recommendations.

15th Finance Commission :

The 15th Finance Commission was constituted by the President of India under the chairmanship of NK Singh.
This Commission is expected to submit its report by October 2020.
Its recommendations will cover a period of five years from April 2021 to March 2026.

Source :- PIB ; The Hindu

Govt wants RBI to take over stressed assets of shadow banks: Report

GS PAPER - 03 ECONOMY - Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context :

India's finance ministry wants the Reserve Bank of India to set up a fund to buy out stressed assets of the country's top 25 shadow lenders.
The government has also asked the central bank to consider a one time waiver to banks from classifying some real estate loans as bad loans

Shadow Banks :

The term refers to the practice of banking like activities performed by non-banking finance companies, which are not subject to strict regulation.
It is also referred as non-bank financial intermediation or market-based finance.
Generally, it is not regulated in the same way as traditional bank lending.
The term ‘shadow bank’ was coined by Paul McCulley in 2007.
Examples of shadow lenders include Special Purpose Entities, Non Banking Financial Companies (NBFCs), Hedge Funds etc.
These institutions function as intermediaries between the investors and the borrowers, providing credit, thus, leading to financial inclusion and hence generate liquidity in the system.
- However, the 2008 financial crisis has shown that shadow banking can be a source of systemic risk to the banking system. The risks can be transmitted directly and through the interconnectedness of partially-regulated entities with the banking system.
- After the financial crisis, central banks including that of USA, Britain and the European Union (EU) have introduced many strong measures to control shadow banking.
In India, the crisis of the NBFCs that was triggered by the liquidity problems of IL&FS in 2018, has brought back the attention to shadow banking sector.

Source :- Livemint ; Times of India

ENVIRONMENT AND ECOLOGY

New snake species found in Arunachal pradesh

GS PAPER - 03 ENVIRONMENT AND ECOLOGY - Conservation, environmental pollution and degradation, environmental impact assessment

Context :

Recently,researchers from Arunachal Pradesh have discovered a new species of non-venomous burrowing snake named Trachischium apteii.

Trachischium apteii :

The species Trachischium apteii was found under fallen logs inside a thickly forested area of the Talley Valley Wildlife Sanctuary in Arunachal Pradesh.
It belongs to a group of fossorial snakes that live mostly underground, and surface mainly during or after a heavy monsoon shower.
The snake is distinguished by smooth and dorsal scales arranged in 15 rows throughout the body.
The dorsal colour of the holotype is dark brown to black with faint dorsal longitudinal lines.

Trachischium species:

Trachischium species are commonly called slender snakes.
They are currently known by seven species that are distributed across the Himalayas, the Indo-Burma and Indo-China regions.

Source :- The Hindu

UNDP launches Accelerator Lab in India

GS PAPER - 03 ENVIRONMENT AND ECOLOGY - Conservation, environmental pollution and degradation, environmental impact assessment

Context :

The United Nations Development Programme (UNDP) has launched its Accelerator Lab in India. The project has been launched in collaboration with the government’s Atal Innovation Mission and will look to solve issues through innovative solutions.

Accelerator Lab:

The Accelerator Lab is an innovative new initiative by the UNDP, State of Qatar and the Federal Republic of Germany to find 21st century solutions to today's complex new challenges.
India's Accelerator Lab will be part of a network of 60 global labs covering 78 nations, that will test and scale new solutions to global challenges like climate change and inequality.
These Labs will identify grassroots solutions together with local actors and validate their potential to accelerate development.

Objective :

This lab will seek to address some of the most pressing issues facing India, such as air pollution, sustainable water management and client-resilient livelihoods through innovation.
The vision is to make faster progress in meeting the ambitious Sustainable Development Goals (SDGs) of the U.N. by 2030.

Source :- The Hindu

SCIENCE AND TECHNOLOGY

Proposal of ISRO to transfer space-grade Li-Ion cell technology to BHEL

GS PAPER - 03 SCIENCE AND TECHNOLOGY - Achievement of Indians in science & technology; indigenization of technology and developing new technology.

Context :

ISRO has transferred its indigenous technology to produce space-grade Li-Ion cells to BHEL.
- In March 2018, BHEL signed the Technology Transfer Agreement with ISRO for acquiring the Li-Ion Cell production technology.

Source :- PIB

SECURITY

Defence Acquisition Council

GS PAPER - 03 SECURITY - Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context :

The Defence Acquisition Council, chaired by the Defence Minister Shri Rajnath Singh, approves Capital Procurement for the Services amounting to over Rs 22,800 crore.

More in the news :

To boost the ‘Make in India’ initiative, the DAC accorded approval for indigenous design, development and manufacturing of ‘Thermal Imaging Night Sights’ for Assault Rifles.
- These sights will be manufactured by the Indian private industry and used by troops deployed on the frontline.
- ‘Thermal Imaging Night Sights’ would enable troops to undertake long-range accurate engagements in dark and all weather conditions thereby enhancing the night fighting capabilities.
As a follow up of the successful indigenous Airborne Early Warning and Control (AEW&C) programme, the DAC revalidated the Acceptance of Necessity for the procurement of additional Airborne Warning and Control System (AWACS) India aircraft.
- The mission system and sub-systems for these aircraft would be indigenously designed, developed and integrated onto the main platform by Defence Research and Development Organisation (DRDO).
- These platforms would provide on-board Command & Control and ‘Early Warning’ which would assist the Indian Air Force (IAF) in achieving effective air space dominance in the least possible time.
- Induction of these systems would increase the extent of coverage along our borders and greatly enhance both the Air Defence and Offensive capabilities of the IAF.
The DAC also approved the procurement of Long Range Maritime Reconnaissance (LRMR) Anti-Submarine Warfare P8I aircraft for the Indian Navy.
- These aircraft would greatly strengthen the Navy’s capabilities for maritime surveillance, Anti-Submarine Warfare (ASW) and Anti-Surface Vessel (ASV) strike.
The DAC approved the procurement of Twin Engine Heavy Helicopters (TEHH) for the Indian Coast Guard
- These aircraft would enable the Coast Guard to undertake missions to prevent maritime terrorism, infiltration of terrorists by sea routes as well as Search & Rescue operations.

Defence acquisition Council :

The Defence Acquisition Council is the highest decision-making body in the Defence Ministry for deciding on new policies and capital acquisitions for the three services (Army, Navy and Air Force) and the Indian Coast Guard.
The Minister of Defence is the Chairman of the Council.
It was formed, after the Group of Ministers recommendations on 'Reforming the National Security System', in 2001, post Kargil War (1999).

Source :- PIB

DISASTER MANAGEMENT

1st International Conference on “Landslides Risk Reduction and Resilience-2019”

GS PAPER - 03 DISASTER MANAGEMENT - Disaster and disaster management.

Context :

The Union Minister of State for Home Affairs, inaugurated the 1st International Conference on “Landslides Risk Reduction and Resilience".

More about the conference :

National Institute of Disaster management (NIDM) organized the first of its kind conference in the country, called for making extensive collaborative programs involving international community and all the stakeholders at national, state and regional levels to tackle the problem.
The deliberations in this conference will go a long way in finding long term solutions to natural disasters.

Landslides :

landslides are a natural calamity, they may cause huge havoc on communities, live stock, environment leading to huge loss of lives .
They effect loss of infrastructures-roads, buildings, bridges, communication systems etc, on the other, they may lead to stagnation of human activity and mobility, he added .
landslides can destroy the structures of our culture and heritage and erase the cultural and historical identities of the people.

India’s Initiative :

since the adoption of the Disaster Management Act 2005, the Government has taken a number of initiatives to strengthen the resilience capacity of all the stakeholders at different levels.

Source :- PIB

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29th NOVEMBER 2019 DAILY CURRENT AFFAIRS

ECONOMY

Industrial Relations Code Bill, 2019

GS PAPER - 03 ECONOMY - Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context :

The Minister of State (I/C) for Labour and Employment introduced The Industrial Relations Code Bill, 2019 in the Lok Sabha.

Industrial Relations Code Bill, 2019 :

The code proposes to amalgamate The Trade Unions Act, 1926, The Industrial Employment (Standing Orders) Act, 1946, and The Industrial Disputes Act, 1947.

It is the third out of four labour codes that have got approval from the cabinet.

Key Features :

Seeks to allow companies to hire workers on fixed-term contract of any duration.

Has retained the threshold on the worker count at 100 for prior government approval before retrenchment, but it has a provision for changing ‘such number of employees’ through notification.

Provides setting up of a two-member tribunal (in place of one member) wherein important cases will be adjudicated jointly and the rest by a single member, resulting speedier disposal of cases.

Has vested powers with the government officers for adjudication of disputes involving penalty as fines.

Introduces a feature of ‘recognition of negotiating union’ under which a trade union will be recognized as sole ‘negotiating union’ if it has the support of 75% or more of the workers on the rolls of an establishment.

As several trade unions are active in companies, it will be tough for any one group to manage 75% support, hence taking away their negotiating rights. In such a case, a negotiating council will be constituted for negotiation.

Underlines that fixed-term employees will get all statutory benefits on a par with the regular employees who are doing work of the same or similar nature.

Under the code, termination of service of a worker on completion of tenure in a fixed-term employment will not be considered as retrenchment.

Proposes setting up of a “re-skilling fund” for training of retrenched employees. The retrenched employee would be paid 15 days’ wages from the fund within 45 days of retrenchment.

Significance :

The Indian economy grew at 5% in the June quarter, a six-year low, while the country’s factory output shrank for the second straight month at 4.3% in September, recording its worst show since the present series was launched in April 2012.

The ease of compliance of labour laws will promote the setting up of more enterprises, thus catalysing the creation of employment opportunities in the country.

Source :- PIB ; The Hindu

Govt. extends 15th finance panel term

GS PAPER - 03 ECONOMY- Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context :

The Union Cabinet has approved the extension of the term of the 15th Finance Commission setting 30th October,2020 as the new deadline.

More in the news :

The union cabinet on Wednesday extended to the term of the Fifteenth Finance Commission by a year, asking it to submit an interim report for fiscal year 2020-21 and a full report for fiscal years 2021-22 to 2025-26—a decision apparently taken to factor in Jammu and Kashmir’s new status.

The extension of the term will enable the Commission to examine various comparable estimates for financial projections in view of reforms and the new realities to finalize its recommendations for the period 2020-2026

The Commission can give recommendations for six years through two reports (2020-21 to 2025-26), when the Sixteenth Finance Commission is set up, it will consider devolution for 2025-26 to 2029-30, and not from 2026-27

Finance Commission :

The Finance Commission is constituted by the President under Article 280 of the Constitution mainly to give its recommendations on distribution of tax revenues between the Union and the States and amongst the States themselves.

The Commission is appointed every five years.It consists of a Chairman and four other members.

The First Finance Commission was constituted in 1951 under the chairmanship of Shri K.C. Neogi.

Functions or Duties :

The Commission makes recommendations to the President of India on the distribution of tax proceeds between the Union and the States and the share of each state.

The Commission also decides the principles that govern the payment of grants-in-aid to states from the Consolidated Fund of India.

The President of India can also refer any other matter to the Finance Commission in the interest of building a sound financial system.

Members of Finance Commission :

The Finance Commission has a chairman and four members appointed by the President.

The Chairman of the Commission is selected from among persons who have had experience in public affairs.

The four other members are selected from among persons who

are or have been or are qualified to be appointed as Judges of the High Court; or

have special knowledge of the finances and accounts of Government or

have had wide experience in financial matters and in administration or

have special knowledge of economics.

Report of Finance Commission :

Article 281 of the Constitution says that,the President of India is required to cause laying of the Finance Commission report before each House of Parliament along with an explanatory note and the action taken by the government on the Commission’s recommendations.

15th Finance Commission :

The 15th Finance Commission was constituted by the President of India under the chairmanship of NK Singh.

This Commission is expected to submit its report by October 2020.

Its recommendations will cover a period of five years from April 2021 to March 2026.

Source :- PIB ; The Hindu

Govt wants RBI to take over stressed assets of shadow banks: Report

GS PAPER - 03 ECONOMY - Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context :

India's finance ministry wants the Reserve Bank of India to set up a fund to buy out stressed assets of the country's top 25 shadow lenders.

The government has also asked the central bank to consider a one time waiver to banks from classifying some real estate loans as bad loans

Shadow Banks :

The term refers to the practice of banking like activities performed by non-banking finance companies, which are not subject to strict regulation.

It is also referred as non-bank financial intermediation or market-based finance.

Generally, it is not regulated in the same way as traditional bank lending.

The term ‘shadow bank’ was coined by Paul McCulley in 2007.

Examples of shadow lenders include Special Purpose Entities, Non Banking Financial Companies (NBFCs), Hedge Funds etc.

These institutions function as intermediaries between the investors and the borrowers, providing credit, thus, leading to financial inclusion and hence generate liquidity in the system.

However, the 2008 financial crisis has shown that shadow banking can be a source of systemic risk to the banking system. The risks can be transmitted directly and through the interconnectedness of partially-regulated entities with the banking system.

After the financial crisis, central banks including that of USA, Britain and the European Union (EU) have introduced many strong measures to control shadow banking.

In India, the crisis of the NBFCs that was triggered by the liquidity problems of IL&FS in 2018, has brought back the attention to shadow banking sector.

Source :- Livemint ; Times of India

ENVIRONMENT AND ECOLOGY

New snake species found in Arunachal pradesh

GS PAPER - 03 ENVIRONMENT AND ECOLOGY - Conservation, environmental pollution and degradation, environmental impact assessment

Context :

Recently,researchers from Arunachal Pradesh have discovered a new species of non-venomous burrowing snake named Trachischium apteii.

Trachischium apteii :

The species Trachischium apteii was found under fallen logs inside a thickly forested area of the Talley Valley Wildlife Sanctuary in Arunachal Pradesh.

It belongs to a group of fossorial snakes that live mostly underground, and surface mainly during or after a heavy monsoon shower.

The snake is distinguished by smooth and dorsal scales arranged in 15 rows throughout the body.

The dorsal colour of the holotype is dark brown to black with faint dorsal longitudinal lines.

29^th NOVEMBER 2019 DAILY CURRENT AFFAIRS