DAILY NEWS ANALYSIS 25 JUNE
DNA 25th June
EDITORIAL
The perils of follow the leader syndrome- Need of National Plan for Covid-19
This editorial discusses inefficiency of NDMA and PM Cares Fund to tackle Covid-19.
Provisions of Disaster Management Act 2005
-The Act, along with other things provides the constitution of a National Authority, a National Executive committee.
-It also provides for the constitution of an advisory committee of experts in the field to make recommendations and to prepare a national plan.
-This plan must provide for measures for prevention or mitigation.
-The Act lays down “guidelines for minimum standards of relief, including ex gratia assistance.
Provision of various Funds under DMA 2005
-It enables the creation of a National Disaster Response Fund in which the central government must make due contribution.
-It also requires “any grants that may be made by any person or institution for the purpose of disaster management” to be credited into the same Fund.
-It also provides for a National Disaster Mitigation Fund, exclusively for mitigation.
-The Act also provides for State and local-level plans and for creating State Disaster Response Fund among others.
Provision of disaster management plan
-After the direction by the SC, the government came out with a National Disaster Management Plan (NDMP), 2016.
-This Plan dealt with various kinds of disasters; it was amended in 2019.
-But this National Plan not in place now.
-Without it, the fight against COVID-19 is ad hoc and has resulted in thousands of government orders.
-These orders are confusing those who are to enforce them as well as the public.
NDRF and PM CARES issue
-On April 3, 2020, the government of India agreed to contribute its share to the NDRF.
-But a public charitable trust under the name of Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) was set up to receive grants made by persons and institutions out of the NDRF, in violation of Section 46 of the Act.
-The crores being sent to this fund are not even audited by the Comptroller and Auditor General (CAG) of India.
-It is a totally opaque exercise.
-The government of the day has not only ignored the binding law but also circumvented it.
-The government has been fighting the crisis in an ad hoc and arbitrary manner instead of the organised steps as mandated by the Act.
Source: https://www.thehindu.com/opinion/the-perils-of-follow-the-leader-syndrome/article31909353.ece
POLITY
Commission to Examine Sub Categorization of other Backward Classes
Context:
Cabinet approves Extension of term of the commission constituted under Article 340 of the constitution to examine the issue of Sub-categorization within other Backward Classes in the Central List.
Article 340
-Article 340 of the Indian Constitution lays down conditions for the appointment of a Commission to investigate the conditions of the backward classes.
-The President may by order appoint a Commission consisting of such persons as he thinks fit to investigate the conditions of socially and educationally backward classes within the territory of India.
What is the Constitutional basis?
-Article 14 of the Constitution guarantees equality before the law. That means un-equals cannot be treated equally. Measures are required to be taken for the upliftment of un-equals to bring them on par with the advanced classes.
-Article 16 (4) provides that the State can make any provision for the reservation of appointments or posts in favour of any backward class of citizens who, in the opinion of the state, are not adequately represented in the services under the State.
Sub- categorisation:
-National Commission for Backward Classes (NCBC) proposed the sub-categorisation of Other Backward Classes (OBCs) back in 2015.
-In October 2017, President Ram Nath Kovind, in exercise of the powers conferred by Article 340 of the Constitution, appointed a commission to examine the issue of sub-categorisation of OBCs, chaired by retired Justice G. Rohini, to ensure social justice in an efficient manner by prioritising the Extremely Backward Classes (EBCs).
What is the need for sub- categorization?
It will ensure that the more backward among the OBC communities can also access the benefits of reservation for educational institutions and government jobs.
Source:https://pib.gov.in/PressReleseDetail.aspx?PRID=1633912
HEALTH
Annual TB Report 2020
Context:
The Annual TB Report is prepared and published by the Central TB Division, Ministry of Health and Family Welfare, GOI.
Major Highlights:
-04 lakh notified TB patients in 2019 in India, which is a 14% increase from 2018.
-Reduction in the number of missing cases to 2.9 lakh cases as against more than 10 lakhs in 2017.
-Private sector notifications increased by 35% with 6.78 lakh TB patients notified.
-Proportion of children diagnosed with TB increased to 8% in 2019 compared to 6% in 2018.
-Provision of HIV testing for all notified TB patients increased from 67% in 2018 to 81% in 2019.
-Expansion of treatment services has resulted in a 12% improvement in the treatment success rate of notified patients. For 2019, it is 81% compared to 69% in 2018.
Nikshay system:
-The country is achieving near-complete on-line notification of TB patients through the NIKSHAY system.
-Nikshay is an information management system that acts like a one-stop solution for managing patients’ information and monitor program activity and performance all over the country.
-It is developed and maintained by the Central TB Division (CTD), Ministry of Health and Family Welfare in collaboration with the National Informatics Centre (NIC) and the World Health Organization Country office for India.
National Tuberculosis Elimination Program (NTEP):
-It is a Centrally Sponsored Scheme being implemented under the aegis of the National Health Mission with resource sharing between the State Governments and the Central Government.
-The goal of the program is to achieve a TB-free India with zero deaths, disease and poverty due to tuberculosis.
ECONOMY
Animal Husbandry Infrastructure Development Fund (AHIDF) launched
Context:
Animal Husbandry Infrastructure Development Fund approved by Cabinet in pursuance of recently announced Atma Nirbhar Bharat Abhiyan stimulus package.
More about the fund:
-Size of the fund is 15000 crore.
-This Fund will incentivise infrastructure investments in dairy, meat processing and animal feed plants.
-Eligible- Farmer Producer Organizations (FPOs), MSMEs, Section 8 Companies, Private Companies and individual entrepreneur with only 10% margin money contribution by them.
-Rest of the Funds: The balance 90% would be the loan component to be made available to them by scheduled banks.
-GOI will provide 3% interest subvention to eligible beneficiaries.
-There will be 2 years moratorium period for repayment of the loan with 6 years repayment period thereafter.
Credit Guarantee Fund:
-A Credit Guarantee Fund of Rs. 750 crore will also be set up.
-It is to be managed by NABARDwhich would provide credit guarantee to the projects which are covered under the MSME defined ceilings.
-Guarantee Coverage would be up to 25% of the Credit facility of the borrower.
Significance:
-This ensures the availability of capital to meet upfront investment required for these projects.
-Such investments in processing and value addition infrastructure by eligible beneficiaries would also promote exports by adding to farmers’ incomes.
Credit Guarantee Scheme for Sub-ordinate Debt (CGSSD)
Context:
-The scheme was announced by the Finance Minister as part of the Atmanirbhar Bharat Abhiyan.
-It is also called as “Distressed Assets Fund–Sub-ordinate Debt for MSMEs”.
Significance:
-The scheme would provide much-required support to around 2 lakh MSMEs and will help in reviving the economic activity in and through this sector.
-It will also help in protecting the livelihoods and jobs of millions of people who depend on them.
More about the scheme:
-It is a scheme for the distressed MSME sector.
-It to extend support to the promoter(s) of the operational MSMEs which are stressed and have become NPAs as on 30th April, 2020.
-As per the Scheme, guarantee cover worth Rs. 20,000 crores will be provided to the promoters who can take debt from the banks to further invest in their stressed MSMEs as equity.
-It will be operationalised through Credit Guarantee Fund Trust for MSEs (CGTMSE).
Implementation Mechanism:
-Promoter(s) of the MSMEs will be given credit equal to 15% of their stake (equity plus debt) or Rs. 75 lakh whichever is lower.
-Promoter(s) in turn will infuse this amount in the MSME unit as equity and thereby enhance the liquidity and maintain the debt-equity ratio.
-90% guarantee coverage for this sub-debt will be given under the Scheme and 10% would come from the concerned promoters.
-There will be a moratorium of 7 years on payment of principal whereas the maximum tenor for repayment will be 10 years.
Prelims
Skills Build Reignite
-MSDE-IBM partnership unveils Free Digital Learning Platform “Skills Build Reignite” to reach more job seekers & provide new resources to business owners in India.
-The free digital learning platform provides job seekers and entrepreneurs, with access to free online coursework and mentoring support designed to help them reinvent their careers and businesses.
-Job seekers, individual business owners, entrepreneurs and any individual with learning aspirations can access content on topics including Artificial intelligence, Cloud, Data analytics and security to reskill and upskill themselves, at no cost.
-There is also personalized coaching for entrepreneurs, seeking advice to help establish or restart their small businesses as they begin to focus on recovery to emerge out of the COVID-19 pandemic.
AshadhiBij, the Kutchi New Year
-AshadhiBij/Beej is the 2nd day of Shukla paksha of Ashadha month of the Hindu calendar (June – July).
-The Kutchi people of Gujarat celebrate their Kutchi New Year on this day.
-This day is associated with the beginning of rains in Kutch, Gujarat.
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