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4th MARCH 2019 DAILY CURRENT AFFAIRS
IL&FS ignored risk assessment reports while extending loans: audit
India nudges Myanmar action on Naga militants
PM Modi to launch 'One Nation One Card' for all modes of travel
MUDRA: Rs 1 lakh cr. more has to be lent
Government plans to colour code generic drugs
Prayagraj Kumbh Mela 2019 makes it to the Guinness World Records
IL&FS ignored risk assessment reports while extending loans: audit
GS PAPER - 02 GOVERNANCE - Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
Context :
★ A forensic audit report of IL&FS has found serious lapses in the manner in which huge loans were extended to certain entities even after internal risk assessment clearly showed that the borrowers were under financial stress.
Highlights of audit Report :
★ The committee of directors of the infrastructure financing company extended loans at a negative spread to borrowers facing liquidity issues. (A negative spread occurs when interest rates charged on amounts lent are lower than interest rates paid on borrowed sums.)
★ There were many instances where the Committee of Directors (CoD) ultimately approved loans to those borrowers who appeared to be in potential stress.
★ Further,Serious Fraud Investigation Office(SFIO) in its interim report has alleged that the non-banking finance company IL&FS had borrowed short term loan from the market and lent long term to group companies that were struggling to raise funds, risking its own financial position and in violation of the Companies Act.
IL and FS :★ IL&FS is an infrastructure finance company registered with the Reserve Bank of India as a ‘Systemically Important Non-Deposit Accepting Core Investment Company’.★ It operates through more than 250 subsidiaries including IL & FS Investment managers, IL & FS financial services and IL & FS Transportation networks India Limited (ITNL).★ IL&FS has run out of money and, therefore, has been unable to service its repayment obligations which led to series of defaults on loans, debentures and commercial papers.Issues of Corporate Governance :★ Loan approval by Committee of Directors (CoD) when borrower was in stress raises the issue of transparency in loan approval★ It is against the spirit of Company Act ,2013★ Such type of poor governance is one of the prime factor for rising Non performing Assets. |
Serious Fraud Investigation Office (SFIO) :★ The Serious Fraud Investigation Office (SFIO) is a fraud investigating agency.★ It is under the jurisdiction of the Ministry of Corporate Affairs, Government of India.★ The SFIO is involved in major fraud probes and is the co-ordinating agency with the Income Tax and CBI.★ The Government approved setting up of this organization in 2003 on the basis of the recommendations made by the Naresh Chandra Committee which was set up by the Government in 2002 on corporate governance. |
Source :- The Hindu
India nudges Myanmar action on Naga militants
GS PAPER - 03 INTERNAL SECURITY - Security challenges and their management in border areas; linkages of organized crime with terrorism Various Security forces and agencies and their mandate
Context :
★ Due to improved relation between India and Myanmar,Tatmadaw — Myanmar’s military — started crack down on National Socialist Council of Nagaland-Khaplang (NSCN-K).
★ Myanmarese army has taken control of the headquarters of the National Socialist Council of Nagalim (NSCN), Khaplang group, situated in the Myanmar’s Sagaing Region.
NSCN :
★ The National Socialist Council of Nagaland (NSCN) is a Greater Naga Revolutionist, Christian Naga nationalist insurgent group operating mainly in Northeast India, with minor activities in northwest Myanmar (Burma) until 2012.
★ NSCN aims at forming ‘Nagalim’ or Greater Nagaland which would consist of all Naga inhabited areas of North-East and some areas in adjoining Myanmar.
★ In 1988,NSCN got split due to differences on talks with India.The two groups formed are: NSCN(IM) formed by Isak Chisi Swu and Thuingaleng Muivah and NSCN(K) formed by S. S. Khaplang.
★ In 2015, the NSCN (IM) faction entered into peace talks with the Indian government.On the other hand, NSCN(K) had established their base in Myanmar and were involved in strikes against Indian Security Forces.
★ The Naga Peace Accord was signed between the Government of India and the Naga armed groups headed by the NSCN-IM in 2015. The accord seeks to end the Naga insurgency.
Source :- The Hindu
PM Modi to launch 'One Nation One Card' for all modes of travel
GS PAPER - 02 GOVERNANCE - Government policies and interventions for development in various sectors and issues arising out of their design and implementation
Context :
★ Prime Minister Narendra Modi launched India’s first indigenously-developed National Common Mobility Card (NCMC).
★ Dubbed as 'One Nation-One Card', the inter-operable transport card would allow holders to pay for their bus travel, toll taxes, parking charges, retail shopping and withdraw cash.“
One Nation One Card :
★ It will be powered by RuPay and can be used across all the public transport and retail payments including transit, retail, toll, and parking. In fact, it will let people withdraw money from it.
★ The card will be issued by any bank as debit, credit or prepaid.
★ The “Made in India” RuPay Card is a contactless card and will allow people to tap-and-go.
★ It can be used just like any other debit or credit card. The smart card can either be used to get tickets from the counter or to enter the stations like metro.
★ The smart card also has a “unique stored value” feature that can be used to make digital payments in offline mode.
★ It will also allow the purchase of monthly passes and season tickets.
★ The concept of a single card for all public transportation came from Singapore and London. London’s Oyster card allows travel on any bus, metro or suburban trains.
★ India is reportedly using its own indigenous technology to support the card.
Source :- Times of India
MUDRA: Rs 1 lakh cr. more has to be lent
GS PAPER - 02 GOVERNANCE - mechanisms, laws, institutions and Bodies constituted for the
protection and betterment of these vulnerable sections.
Context :
★ Despite all the push given by the Central government to the Pradhan Mantri MUDRA Yojana and the ‘MSME loan in 59 minutes’ scheme, banks are still struggling to meet the Rs 3 lakh crore target for lending Mudra loans, as only about Rs 2 lakh crore have been disbursed so far.
Pradhan Mantri Mudra Yojana :
★ Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon’ble Prime Minister on April 8, 2015 for providing loans upto 10 lakh to the non-corporate, non-farm small/micro enterprises.
★ These loans are classified as MUDRA loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance Banks, Cooperative Banks, MFIs and NBFCs.
★ The borrower can approach any of the lending institutions mentioned above or can apply online through this portal.
Eligible :
★ Any Indian Citizen who has a business plan for a non-farm sector income generating activity such as manufacturing, processing, trading or service sector and whose credit need is less than Rs 10 lakh can approach either a Bank, MFI, or NBFC for availing of Micro Units Development & Refinance Agency Ltd.
Types of Loans Provided :
★ Shishu : covering loans upto 50,000/-
★ Kishor : covering loans above 50,000/- and upto 5 lakh
★ Tarun : covering loans above 5 lakh and upto 10 lakh
★ Under the aegis of PMMY, MUDRA has created three products namely 'Shishu', 'Kishore' and 'Tarun' to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth.
Mission :
★ To create an inclusive, sustainable and value based entrepreneurial culture, in collaboration with our partner institutions in achieving economic success and financial security."
Vision :
★ To be an integrated financial and support services provider par excellence benchmarked with global best practices and standards for the bottom of the pyramid universe for their comprehensive economic and social development."
Source :- The Hindu
Government plans to colour code generic drugs
GS PAPER -02 GOVERNANCE - Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.
Context :
★ The government has planned to colour code generic drugs.
★ Apart from colour coding, the government is also considering use of symbols to make generic medicines easily identifiable.
Colour Coding of Generic drugs :
★ The coding system is likely to be similar to that used in food products to differentiate between vegetarian and non-vegetarian food.
★ The government is expected to soon draw a detailed proposal on the matter, which will be put out for stakeholder consultations.
Why Such a move?
★ Last year, the Competition Commission of India (CCI) had raised concern over the high trade margins included in prices of branded medicines.
★ Highlighting the role of intermediaries in increasing prices, the anti-trust regulator had asked the government to find mechanisms to promote generic medicines.
★ In a policy note, the CCI said high margins were a form of incentive and an indirect marketing tool employed by pharma companies.
Significance :
★ This would enable consumers to differentiate between generic drugs and other medicines and take an informed decision while purchasing medicines
★ World Health Organisation has said increased use of generics can reduce the burden of out of pocket expenditure on healthcare. Currently, essential medicines constitute over 60% of pocket expenditure on healthcare in India.
Generic Drug:★ A generic drug is identical — or bioequivalent — to a brand name drug in dosage form, safety, strength, route of administration, quality, performance characteristics and intended use.★ Although generic drugs are chemically identical to their branded counterparts, they are typically sold at substantial discounts from the branded price.Difference between generic drug and Brand name drug :★ When a company develops a new drug — often after years of research — it applies for a patent, which prohibits anyone else from making the drug for a fixed period.★ To recover the cost of research and development, companies usually price their brand- name drugs on the higher side. Once the patent expires, other manufacturers duplicate and market their own versions of the drug.★ Since the manufacture of these generic drugs do not involve a repeat of the extensive clinical trials to prove their safety and efficacy, it costs less to develop them. Generic drugs are, therefore, cheaper.★ However, because the compounds in the generic versions have the same molecular structure as the brand-name version, their quality is essentially the same.★ The generic drug has the same “active ingredient” as the brand-name drug.★ This ingredient is the one that cures the patient; and other, “inert ingredients”, which give the drug its colour, shape or taste, vary from the brand-name drug to the generics.Various steps taken to promote generic drugs :★ The Indian Health Ministry has taken several initiatives to promote sale of generic medicines over branded ones. These include★ It has made it mandatory for pharmacies to have separate shelves for displaying generic drugs,★ asked doctors to prescribe generic drugs in legible handwriting,★ asked companies to print generic names on their labels in a font 2 times larger than the brand name,★ Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP): It is a campaign launched by the Department of Pharmaceuticals to provide quality medicines at affordable prices to the masses. Jan Aushadi stores have been set up to provide generic drugs. |
Source :- Times of India
Prayagraj Kumbh Mela 2019 makes it to the Guinness World Records
GS PAPER - 01 ART AND CULTURE - Indian culture will cover the salient aspects of Art Forms, Literature and Architecture from ancient to modern times.
Context :
★ Prayagraj Kumbh Mela 2019 has been placed in the Guinness World Records in three sectors.
★ It includes largest traffic and crowd management plan, the biggest painting exercise of public sites under paint my city scheme and biggest sanitation and waste disposal mechanism.
Source :- PIB
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