Current Affairs 19 July 2024

National Affairs

Final Report of India’s G20 Task Force on Digital Public Infrastructure Released

The final report of India’s G20 Task Force on Digital Public Infrastructure was released in New Delhi. This report aims to strengthen the foundations of Digital Public Infrastructure (DPI) worldwide. It was prepared by India’s G20 Task Force on DPI for Economic Transformation, Financial Inclusion, and Development. The report sets a strategic direction for DPI, aiming to accelerate economic progress and improve transparency and public services globally, especially in the Global South.

NITI Aayog Reconstituted with 4 Full-Time Members & 15 Union Ministers Including from NDA Allies

Prime Minister Narendra Modi approved the revised composition of the National Institution for Transforming India (NITI Aayog). The new structure includes 4 full-time members and 15 Union ministers, including those from the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) allies, as either ex-officio members or special invitees. The PM remains the Chairperson, and Economist Suman K Bery continues as the Vice-chairperson.

Full-time Members:

1. Missile Scientist V. K. Saraswat
2. Agricultural Economist Ramesh Chand
3. Paediatrician Vinod K. Paul
4. Macro Economist Dr. Arvind Virmani

Ex-officio Members:

1. Raj Nath Singh, Ministry of Defence (MoD)
2. Amit Shah, Ministry of Home Affairs (MHA) and Ministry of Cooperation (MoC)
3. Shivraj Singh Chauhan, Ministry of Agriculture and Farmers Welfare (MoA&FW) and Ministry of Rural Development (MoRD)
4. Nirmala Sitharaman, Ministry of Finance (MoF) and Ministry of Corporate Affairs (MCA)

Special Invitees:

1. Nitin Jairam Gadkari, Ministry of Road Transport and Highways (MoRTH)
2. Jagat Prakash Nadda, Ministry of Health and Family Welfare (MoH&FW) and Ministry of Chemicals and Fertilizers (MoC&F)
3. H. D. Kumaraswamy, Ministry of Heavy Industries (MHI) and Ministry of Steel
4. Jitan Ram Manjhi, Ministry of Micro, Small and Medium Enterprises (MoMSME)
5. Rajiv Ranjan Singh alias Lalan Singh, Ministry of Panchayati Raj (MoPR) and Ministry of Fisheries, Animal Husbandry and Dairying (MoFAHD)
6. Virendra Kumar, Ministry of Social Justice and Empowerment (MSJ&E)
7. Kinjarapu Rammohan Naidu, Ministry of Civil Aviation (MoCA)
8. Jual Oram, Ministry of Tribal Affairs (MoTA)
9. Annpurna Devi, Ministry of Women and Child Development (MoWCD)
10. Chirag Paswan, Ministry of Food Processing Industries (MoFPI)
11. Rao Inderjit Singh, Minister of State (MoS) (Independent Charge) of the Ministry of Statistics and Programme Implementation (MoSPI), MoS (Independent Charge) of the Ministry of Planning, and MoS in the Ministry of Culture (MoC)

PSA Prof Ajay Kumar Sood Launches Report on e-mobility R&D Roadmap for India

On 16 July 2024, Professor Ajay Kumar Sood, the Principal Scientific Adviser to the Government of India, launched the ‘e-mobility R&D Roadmap for India’ report at Vigyan Bhawan Annexe in New Delhi. The roadmap outlines critical research initiatives to position India as a global leader in electric mobility, aligning with India’s goals of energy independence by 2047 and Net Zero Emissions by 2070. The roadmap is expected to propel the country into a future of self-reliance in the EV sector with an investment of Rs 1,151 crore over the next five years. The document was prepared by the Automotive Research Association of India (ARAI) in Pune, Maharashtra, under the guidance of the Consultative Group on eMobility (CGeM).

CSIR-CRRI Celebrates its 73rd Foundation Day

The Council of Scientific and Industrial Research (CSIR) – Central Road Research Institute (CRRI) celebrated its 73rd Foundation Day on 16th July 2024 at CSIR – CRRI Auditorium in New Delhi. The idea for CRRI was first discussed at the 1943 conference of Chief Engineers in Nagpur, Maharashtra, and was later approved by the CSIR General Body in March 1950, under the guidance of Sir Shanti Swaroop Bhatnagar, the first DG of CSIR on 16 July 1952.

CSIR Director General N Kalaiselvi Gets Two-Year Extension

The Appointments Committee of the Cabinet has approved the extension of tenure of N. Kalaiselvi as DG of CSIR and Secretary of DSIR for a period of two years beyond 7th August 2024, or until further orders, whichever is earlier.

Ministry of Coal (MoC) Signed Agreements for 3 Coal Mines

On 15th July 2024, the Ministry of Coal signed coal mining development and production agreements for 3 coal mines located in Angul district, Odisha. These mines were auctioned under the 2nd attempt of the 7th Round. Among the 3 mines auctioned, 2 are partially explored, while one is fully explored. This initiative marks a significant step toward achieving self-reliance in the coal sector. It will contribute to economic growth, employment generation, and energy security of the country.

Name of the Coal Mines Along with their Bidders:

1. Machhakata (revised) coal mine - NLC India Limited
2. Kudanali Lubri coal mine - Gujarat Mineral Development Corporation Limited
3. Sakhigopal-B Kakurhi coal mine - Tamil Nadu Generation and Distribution Corporation Limited

Significance: The commercial auction of these 3 coal mines will generate an estimated annual revenue of approximately Rs 2,991.20 crore, based on production at a combined peak-rated capacity of around 30 Million Tonne Per Annum (MTPA). Once these mines become operational, it is projected to generate nearly 40,560 direct and indirect jobs. However, it requires a total investment of around Rs 4,500 crore to bring these coal mines into operation.

International Affairs

Climate Change Disrupting Education Outcomes, Increasing Learning Loss: GEM Report

The Global Education Monitoring Report (GEM) 2024 titled ‘Education and Climate Change-Learning to Act For People And Planet’ highlights how climate change is disrupting education outcomes and increasing learning loss. The report was compiled by UNESCO, the Monitoring and Evaluating Climate Communication and Education (MECCE) project, and the University of Saskatchewan in Canada. The report aims to monitor progress towards education targets within the Sustainable Development Goals framework, with 15 reports produced since 2002.

Key Points:

1. Climate-related stressors such as heat, wildfires, floods, droughts, diseases, and rising sea levels are negatively impacting education outcomes.
2. Most low and middle-income countries face climate-related school closures annually, increasing the risk of learning loss and dropout.
3. Climate change directly impacts education through the destruction of infrastructure and injuries or loss of life among students, parents, and staff. Indirect impacts include displacement of people and adverse effects on livelihoods and health.
4. Over the past 20 years, 75% of extreme weather events led to school closures, affecting over 5 million people.
5. Analysis of census and climate data from 29 countries between 1969 and 2012 shows higher temperatures during prenatal and early life periods are linked to fewer years of schooling, especially in Southeast Asia.
6. A study of over 140,000 children in seven Asian countries found early-life disasters negatively affect school enrollment, particularly for boys, and mathematics performance, especially for girls, by ages 13-14.

Banking & Finance

RBI Approved Brickwork Ratings for Bank Risk-Weighting Claims

The Reserve Bank of India (RBI) has authorized banks to utilize the ratings from Brickwork Ratings India Private Limited (BWR) for determining risk weights in capital adequacy purposes. BWR provides credit ratings for various financial instruments including bank loans, Non-Convertible Debentures (NCDs), commercial paper, bonds, and securitized paper.

New Rating Mandate Provided by RBI to BWR: BWR can rate bank loans up to Rs. 250 crore. For existing ratings, BWR is allowed to conduct rating surveillance regardless of the loan amount until the loan’s residual tenure. However, for existing ratings on working capital facilities over Rs. 250 crore, BWR’s rating surveillance is limited to the next renewal of the facility by the banks.

Background: In April 2024, after meeting regulatory requirements, BWR received approval from the Securities and Exchange Board of India (SEBI) to resume normal operations, including onboarding new clients. Since then, BWR has diversified its Board of Directors by adding Independent Directors with expertise in banking, ratings, law, Information Technology (IT), and corporate business. In April 2024, BWR appointed Santosh B Nayar as the Chairman of the Board.

About Brickwork Ratings India Private Limited (BWR): Managing Director (MD) & Chief Executive Officer (CEO) – Alok Kedia Headquartered – Bengaluru, Karnataka Establishment – 2007

BoB, BoM and SBI Launch Deposit Schemes to Fund Credit Demand

Three Indian Public Sector Banks (PSBs), the State Bank of India (SBI), Bank of Baroda (BoB), and Bank of Maharashtra (BoM) have launched their respective deposit schemes to garner deposits to fund credit demand. This development came after the RBI Governor Shaktikanta Das cautioned about the persistent gap in deposit and credit growth during a meeting held with the Managing Directors (MD) and Chief Executive Officers (CEOs) of public and private sector banks on 2nd July 2024.

Details of the Schemes:

1. Bank of Baroda (BoB) launched its special scheme “the bob Monsoon Dhamaka Deposit Scheme” with two tenor buckets providing an interest rate of 7.25% per annum for 399 days and 7.15% per annum for 333 days. It is applicable for retail deposits less than Rs 3 crore.
2. Bank of Maharashtra (BoM) launched a special scheme with 4 buckets for deposits up to 10 crore.
3. The State Bank of India (SBI), India’s largest PSB, launched a scheme named “Amrit Vrishti”. The scheme offers an interest rate of 7.25% per annum on deposits of 444 days for general citizens and 7.75% for senior citizens.

About State Bank of India (SBI): Chairman – Dinesh Kumar Khara Headquarters – Mumbai, Maharashtra Tagline – The Banker to Every Indian Founded – 1st July 1955

ADB Approves USD 240.5 Million in Loans for Rooftop Solar Systems in India

The Asian Development Bank (ADB) has approved USD 240.5 million in loans to finance rooftop solar systems across India, assisting the government to expand energy access using renewable energy. This financing is part of the Multitranche Financing Facility (MFF) Solar Rooftop Investment Program. ADB’s financing will assist in tranches 2 and 3 of the MFF Solar Rooftop Investment Program, focusing on residential solar rooftop deployments.

Points to Note:

1. The MFF Solar Rooftop Investment Program was approved by ADB in 2016 and restructured in 2023.
2. ADB’s financing will support the Prime Minister (PM) Surya Ghar program (PM Surya Ghar Muft Bijli Yojana), to promote the widespread adoption of rooftop solar systems across India.
3. India targets 50% of cumulative electric power installed capacity from non-fossil fuel energy by 2030, aligning with global carbon emission reduction commitments.

Fund Allocation:

1. State Bank of India (SBI) will receive USD 90.5 million from ADB’s Clean Technology Fund (CTF).
2. National Bank for Agriculture and Rural Development (NABARD) will receive USD 150 million, consisting of USD 80 million from ADB’s ordinary capital resources and USD 70 million from CTF.

Benefits of Rooftop Solar:

1. The installation of rooftop solar benefits the overall power distribution system by reducing the technical and operational burden on the power distribution system.
2. It generates electricity close to consumption points, reducing long-distance power supply needs.
3. It provides a degree of energy independence and minimizes power supply disruptions.

About the Asian Development Bank (ADB): President – Masatsugu Asakawa Headquarters – Mandaluyong City, Metro Manila, Philippines

Ireland Replaced Mauritius to Secure the 4th Spot on Preferred FPI Destinations List

According to the National Securities Depository Limited (NSDL) data, Ireland with Assets Under Custody (AUC) of Rs 4.41 trillion registered on 30th June 2024, has replaced Mauritius to secure the 4th spot on the preferred Foreign Portfolio Investor (FPI) destination list. Mauritius, which registered an AUC of Rs 4.39 trillion by the end of June 2024, has now moved to the 5th position. The data noted that Ireland has witnessed an increase of 26% in AUC for FPIs in the 1st half of the fiscal year 2024, whereas Mauritius saw an increase of 11%.

Key Points:

1. Top 3 Most Preferred FPI Countries: The United States of America (USA) registered an AUC of Rs 3,068,188 crore, emerging as the most preferred destination country for FPI, followed by Singapore (AUC of Rs 7.05 trillion) and Luxembourg (AUC of Rs 5.57 trillion) ranked at 2nd and 3rd spot respectively.
2. Among the top 5 countries which registered the highest AUC, Singapore saw the highest increase of 18% in AUC, from nearly Rs 6 trillion (in December 2023) to Rs 7.05 trillion (in June 2024). France is the only country which saw a decline of 15% in AUC, from Rs 1.88 trillion (in December) to 1.60 trillion (in June 2024).
3. NSDL data revealed that overall, more than 780 FPIs are registered in Ireland compared to 595 in Mauritius.

Reasons for Mauritius Drop in FPI Destination List:

1. Heightened scrutiny of Mauritius-based funds investing in India has led to delays in setting up new fund structures. This has caused a shift towards other countries, especially European countries like Luxembourg, Ireland, and France, as funds based in these countries still enjoy zero tax on cash equities.
2. The Government of Mauritius and India signed an agreement in March 2024 to amend the Double Taxation Avoidance Agreement (DTAA). Mauritius aligned its rules with the Organisation for Economic Co-operation and Development’s (OECD)’s proposal on Base Erosion and Profit Shifting (BEPS).
3. Mauritius introduced a Principal Purpose Test (PPT) to prevent the violation of the treaty by taxpayers. It outlines that if one of the principal reasons for choosing Mauritius is tax benefit, then treaty benefits could be denied.

About National Securities Depository Limited (NSDL): Managing Director (MD) and Chief Executive Officer (CEO) – Padmaja Chundru Headquarters – Mumbai, Maharashtra

Economy & Business

ADB Kept India’s GDP Growth Projection for 2024 Unchanged at 7%

On July 17, 2024, the Asian Development Bank (ADB) released its ‘Asian Development Outlook (ADO) – July 2024’ maintaining the Gross Domestic Product (GDP) forecast for the Indian economy at 7% for the Fiscal Year 2024-2025 (FY 25). For FY26, ADB projects Indian economy growth at 7.2%. Inflation is expected to decline to 4.6% in FY25 and 4.5% in FY26. Notably, India remains Asia’s fastest-growing economy. Growth in developing Asia accelerated in the first quarter of 2024 on resilient domestic demand and strong export growth, particularly in electronics.

About Asian Development Bank (ADB): President – Masatsugu Asakawa Headquarters – Manila, Philippines Members – 68 countries

Appointments & Resignations

Paul Kagame Re-elected For Fourth Term as President of Rwanda

Paul Kagame has been re-elected as the President of the Republic of Rwanda for the fourth five-year term from 2024 to 2029. He has been serving as the President of Rwanda since April 2000. Kagame led the Rwandan Patriotic Front (RPF) political party and won the 2024 presidential election by securing 7,099,810 votes (99.15%) of the total 9,071,157 votes. Frank Habineza of the Democratic Green Party finished 2nd with 38,301 votes (0.53%) and Phillipe Mpayimana finished 3rd with 22,753 votes (0.32%).

About Paul Kagame:

1. Paul Kagame (66), is a Rwandan politician and former military officer, who has been the de-facto leader of Rwanda since the end of the 1994 genocide.
2. He secured 98.63% of the total votes in the 2017 Rwanda presidential election.
3. He had the opportunity to run in the current election as a 2015 constitutional amendment permitted him to seek three additional terms. It allowed Kagame to serve a seven-year term in 2017.
4. He served as Chairperson of the African Union Development Agency New Partnership for Africa’s Development (AUDA-NEPAD) from 2018 to 2019 and also chaired the East African Community (EAC) from 2018 to 2021.

About the Republic of Rwanda: Prime Minister (PM) – Édouard Ngirente President – Paul Kagame Capital – Kigali Currency – The Rwandan franc (Rwf)

Science & Technology

Zen Tech Launches Four New Anti-Drone Products

Zen Technologies Limited (ZEN), an anti-drone technology and Defence training solutions provider, along with its Pune-based subsidiary AI Turing Technologies, has launched four new anti-drone products aimed at enhancing defence forces’ operational effectiveness and tactical supremacy. The four products are Hawkeye, Barbarik – Ultralight Remote Control Weapon Station (URCWS), Sthir Stab 640, and Artificial Intelligence (AI)-powered robot Prahasta.

1. Hawkeye: Hawkeye is a state-of-the-art anti-drone system with numerous sensor detection modules. It has all-weather drone tracking capabilities of up to 15 km, ensuring constant threat identification and increased security.

2. Barbarik-URCWS: Barbarik-URCWS is the world’s lightest remote-controlled weapon station which provides precise targeting in calibres ranging from 5.56mm to 7.62mm, useful for both ground vehicles and naval vessels. It increases battlefield effectiveness and reduces personnel risk. The recent fire test at Infantry School Mhow and Armoured