National current affair
* Gujarat Chief Minister Vijay Rupani has announced a scheme for e-Vehicles. This would encourage the use of battery-operated two-wheelers and three-wheelers in the state. The announcement was made to curb the air pollution in Gujarat. Some key Facts Government would provide a subsidy of 12,000 rupees to students who are studying in Standard-9th to colleges in order for them to use battery-operated two-wheelers. Around 10,000 students would be benefited under this scheme as per the government target. Subsidy of 48,000 rupees would be given for three-wheeler e-rickshaw to the individual and institutional beneficiaries. Around 5000 e-rickshaw would be provided under the subsidy. 50-lakh rupee has been allocated under the scheme for creating necessary infrastructure for charging e-vehicles. These announcements were made on the occasion of foundation day of the climate change department in the state and PM’s Narendra Modi birthday that is celebrated as “Seva Saptah” Partnering with the climate change These announcements were made to combat the climate change and air pollution. On the same occasion, the government signed a memorandum of understanding with 10 organisations in order to increase the use of renewable energy by using the geoinformatics and space Technology. Some of the MoUs include, MoU (memorandum of understanding) with the Indian Institute of Management Ahmedabad on climate policy matters and climate finance. MoU with the Indian Institute of Technology Gandhinagar to do research and to enhance the public utility of scientific information to combat the climate change. MoU with the Gujarat Gas and Gujarat State Road Transport Corporation in order to increase the use of clean fuels and to formulate codes on energy saving. The Chief Minister of Gujarat said that government has targeted to launch some 10,000 electric two-wheelers and 5,000 electric three-wheelers on Gujarat’s road by the end of the current fiscal year that mean in the year 2020.
* The railway board has announced that it will soon start charging a token user fee. The user fee will be charged from the passengers who will take trains from the busy stations. The decision taken by the Railways will slightly increase the total fare of the tickets. Some other key facts which is important:- The user fee collected by the Railway will be used for the redevelopment and modernization of railway infrastructure. The fee will be inclusive in the total ticket fare( fee will be added in the total fare or a person booking a ticket) This is being done on the line of user fee in the air tickets( Airlines will also start such factors) Amount charged will be a very small amount and it will be charged as a user fee.(the amount which is taken by the railways or airlines will be the small amount of fee so that the people can easily pay the amount nd it will not feeling heavy for booking any tickets) The board have stated that it as an important step to bring world-class facilities in the Railways. Details regarding the fee Railway Board CEO and Chairman VK Yadav has announced that, an official notification will be issued for the user charges. The notification would contain, both, a list of stations that are being redeveloped and not being redeveloped. The collected user fee will be utilized for providing better facilities and to redevelop the stations. After the redevelopment of the station is complete, the user fee will be transferred to the concessionaries. Stations selected for charging the user fee Around 7000 stations are currently operating in India. Out of this, some 700-1000 (10-15%) stations would be selected to levy the use fee. The selected stations are supposed to pull more crowd in upcoming years and that is why they need to be redeveloped. This decision has been taken under the redevelopment and modernization plan of the railway. This was announced on September 17, 2020 by The Union Railway Minister, Piyush Goyal in the Lok Sabha. For that matter, a Group of Secretaries (GoS) have also been constituted. The plan would provide amenities, better service and better safety to the passengers
. * The union Government of India have approved Foreign Direct Investment (FDI) of 74%. This FDI has been allowed under the automatic route in defence sector. This will attract more overseas investors in the defence industry. This announcement was made by the Department for Promotion of Industry and Internal Trade (DPIIT) Background Government of India has permitted 100% foreign investments in the defence sector, until now. 49% were allowed under automatic route. Above 49% FDI was allowed through the government’s approval. What has changed now ? 49% share under the automatic route has been increased to 74%. Other reforms in Defence Sector Under the Atma Nirbhar Bharat Abhiyaan, government of India introduced following reforms in the defence sector: For indigenous weapon procurement, a separate capital budget has been allocated. Ordnance factory board (OFB) has been corporatized. A negative list of defence equipment has been created that put some restrictions on the import of equipment’s. What is the Need of such reforms? It will make India self-Reliant in defence procurement. The reforms would also help India to increase its defence Exports. Key Facts to remember India is the third largest country in the world in terms of allocating the defence budget. India is having the second largest armed force in the world. OFB is the largest government-operated production organisation in the world. Department for Promotion of Industry and Internal Trade (DPIIT) The DPIIT was established in 1995 as Department of Industrial Policy & Promotion (DIPP). It was named as DPIIT on January 27, 2019. The department, under the Ministry of commerce and Industry, is responsible for formulation and implementation of promotional and developmental measures. These measures are required for the growth of the industrial sector.
* External Affairs Minister (EAM) of India and Pakistan Foreign Minister (PFM) are expected to meet at the South Asian Association for Regional Cooperation (SAARC) meeting via videoconference on September 24. The announcement has been made days after India-Pakistan tensions that had spilled into a meeting of the Shanghai Cooperation Organisation (SCO) Key facts for this External Affairs:- All member countries have confirmed to attend the meeting. Meeting will be chaired by the Minister for Foreign Affairs of Nepal. India will attend the meeting despite the conflict at SCO virtual meeting of National Security Advisors.
What was the conflict at SCO meeting?
In the meeting, Pakistan’s Special Advisor on National Security had showed a map of Pakistan that claimed Indian territory as their territory. India’s National Security Advisor alleged that it was violating the norms of the meeting that was chaired by Russia. After consultation, India left the meeting in protest. Fee information about SAARC:- The South Asian Association for Regional Cooperation (SAARC) is an intergovernmental organization. It is also designated as the geopolitical union of states in South Asia region. Its member states include Afghanistan, Bangladesh, India, The Maldives, Bhutan, Nepal, Sri Lanka and Pakistan. The grouping was founded on 8th December 1985 at Dhaka, Bangladesh. Significance of SAARC The SAARC is a significant grouping because it seeks to promote the welfare of the peoples of South Asia. It can strengthen collective self-reliance, promote mutual assistance and active collaboration in various fields by cooperating with the international and other regional organisations.
Why SAARC is dysfunctional? Pakistan always vetoed the major initiatives that the grouping decides to work upon. For instance, Pakistan did not agree on the SAARC Motor Vehicle Agreement proposed at Kathmandu summit, 2014. Bilateral issues cannot be discussed in SAARC but India-Pakistan often end up conflicting over the bilateral issues. India alleges Pakistan that it uses terror as an instrument of foreign policy. This has made SAARC business dysfunctional. Disputes between Pakistan and Afghanistan over the Durand line is another reason. India lacks trust on Pakistan in the aftermath of URI terror attack on the Indian security forces in 2016. Further, other forums like Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is gaining the momentum. Revival of SAARC Creation of SAARC COVID-19 Emergency Fund has made the SAARC functional up to some extent The SAARC Foreign Ministers meeting has been scheduled on the sidelines of the UN General Assembly in New York. This would also help in reviving the grouping. COVID-19 Emergency Fund This was proposed by the Prime Minister of India. He also proposed for the formation of a Rapid Response Team of doctors, specialists, testing equipment and attendant infrastructure so as to combat Covid-19. The emergency fund is based on a voluntary contribution from all SAARC members. India extended $10 million as a contribution to the fund. This fund can be used to meet the cost of immediate actions by any members of county. The Foreign Secretaries and Embassies of the member countries would be co-ordinating the fund.
* The Union Food Processing Industries Minister Shrimati Harsimrat Kaur Badal resigned on September 17, 2020. Her resignation was to showcase her protest against the three farm sector bills that was introduced to reform the agriculture sector. The President of India Ramnath Govind has accepted her resignation on the advice of the Prime Minister Shri Narendra Modi. Some issues that are mentioned:- The Lok Sabha recently passed three bills, Farmers Produce Trade and Commerce (Promotion and Facilitation) bill, Farmers (Empowerment and protection) Agreement on Price Assurance and Farm Services bill Essential Commodities (amendment) bill. The political parties have been protesting against the bill stating that the bills would only help big corporates and not the small farmers. Amid the protest, Harsimrat kaur Badal has resigned. Constitutional Provisions on Resignation Third Schedule of Government of India (Transaction of Business) Rules, 1961- It states that the Prime Minister and other ministers of the union shall resign by submitting a letter to the President of India. The President of India can reject or accept the resignation as advised by the Prime Minister. However, since there is a provision of taking two oaths. One before the Chairman of Rajya Sabha or Speaker of Lok Sabha as a member and second before the President of India as a minister. So, if the representative is resigning as the minister, it does not affect the Membership of Parliament. Thus, even though Harsimrat Kaur Badal has resigned as Minister. She is still the Member of Parliament. Notes:- Or some important point to know about:- 1. MoU :-Memorandum of understanding 2. FDI :-Foreign Direct Investment 3. DPIIT :-Department for Promotion of Industry and Internal Trade 4. OFB:- Ordnance factory board 5.EAM :- External Affairs Minister 6. PFM:- Pakistan Foreign Minister 7. SAARC :- South Asian Association for Regional Cooperation 8. BIMSTEC:- Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation
Let’s know about what is FDI :- (FDI)? A foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. Generally, FDI takes place when an investor establishes foreign business operations or acquires foreign business assets in a foreign company. However, FDIs are distinguished from portfolio investments in which an investor merely purchases equities of foreign-based companies. Works:-Foreign direct investments are commonly made in open economies that offer a skilled workforce and above-average growth prospects for the investor, as opposed to tightly regulated economies. Foreign direct investment frequently involves more than just a capital investment. It may include provisions of management or technology as well. The key feature of foreign direct investment is that it establishes either effective control of or at least substantial influence over the decision-making of a foreign business. The Bureau of Economic Analysis (BEA), which tracks expenditures by foreign direct investors into U.S. businesses, reported total FDI into U.S. businesses of $4.46 trillion at the end of 2019. Manufacturing represented the top industry, with just over 40% of FDI for 2019 Some Special Considerations Foreign direct investments can be made in a variety of ways, including the opening of a subsidiary or associate company in a foreign country, acquiring a controlling interest in an existing foreign company, or by means of a merger or joint venture with a foreign company.
Which Types of Foreign Direct Investment are made? Foreign direct investments are commonly categorized as being horizontal, vertical or conglomerate. A horizontal direct investment refers to the investor establishing the same type of business operation in a foreign country as it operates in its home country, for example, a cell phone provider based in the United States opening stores in China. A vertical investment is one in which different but related business activities from the investor’s main business are established or acquired in a foreign country, such as when a manufacturing company acquires an interest in a foreign company that supplies parts or raw materials required for the manufacturing company to make its products. A conglomerate type of foreign direct investment is one where a company or individual makes a foreign investment in a business that is unrelated to its existing business in its home country. Since this type of investment involves entering an industry in which the investor has no previous experience, it often takes the form of a joint venture with a foreign company already operating in the industry. Investments:- Examples of foreign direct investments include mergers, acquisitions, retail, services, logistics, and manufacturing, among others. Foreign direct investments and the laws governing them can be pivotal to a company’s growth strategy. In 2017, for example, U.S.-based Apple announced a $507.1 million investment to boost its research and development work in China, Apple’s third-largest market behind the Americas and Europe. The announced investment relayed CEO Tim Cook’s bullishness toward the Chinese market despite a 12% year-over-year decline in Apple’s Greater China revenue in the quarter preceding the announcement.
*MoU stands for:- A memorandum of understanding (MOU or MoU) is an agreement between two or more parties outlined in a formal document. It is not legally binding but signals the willingness of the parties to move forward with a contract. The MOU can be seen as the starting point for negotiations as it defines the scope and purpose of the talks. Such memoranda are most often seen in international treaty negotiations but also may be used in high-stakes business dealings such as merger talks. How it works:- An MOU is an expression of agreement to proceed. It indicates that the parties have reached an understanding and are moving forward. Although it is not legally binding, it is a serious declaration that a contract is imminent. Under U.S. law, an MOU is the same as a letter of intent. In fact, arguably a memorandum of understanding, a memorandum of agreement, and a letter of intent are virtually indistinguishable. All communicate an agreement on a mutually beneficial goal and a desire to see it through to completion. What are the Contents of an MOU An MOU clearly outlines specific points of an understanding. It names the parties, describes the project on which they are agreeing, defines its scope, and details each party’s roles and responsibilities. While not a legally enforceable document, the MOU is a significant step because of the time and effort involved in negotiating and drafting an effective document. To produce an MOU, the participating parties need to reach a mutual understanding. In the process, each side learns what is most important to the others before moving forward. The process often begins with each party effectively drafting its own best-case MOU. It considers its ideal or preferred outcome, what it believes it has to offer to the other parties, and what points may be non-negotiable on its side. This is each party’s starting position for negotiations.
* DPIIT Stand for :- It is responsible for formulation and implementation of promotional and developmental measures for growth of the industrial sector, keeping in view the national priorities and socio-economic objectives. While individual administrative ministries look after the production, distribution, development and planning aspects of specific industries allocated to them, DPIIT is responsible for the overall industrial policy. It is also responsible for facilitating and increasing the foreign direct investment (FDI) flows to the country. The Department in its current form came into being on 27 January 2019, when the erstwhile Department of Industrial Policy & Promotion was renamed to Department for Promotion of Industry and Internal Trade (DPIIT) after internal trade was added to its mandate. The current Minister is Piyush Goyal while the top bureaucrat is Secretary Guruprasad Mohapatra.
* Ordnance Factory Board (OFB) consisting of the Indian Ordnance Factories is an Government agency under the control of department of defence production (DDP) Ministry of Defence (MoD), Government of India. It is engaged in research, development, production, testing, marketing and logistics of a comprehensive product range in the areas of air, land and sea systems. OFB comprises forty-one ordnance factories, nine training institutes, three regional marketing centres and four regional controllerates of safety, which are spread all across the country.Every year, 18 March is celebrated as the Ordnance Factory Day in India. OFB is the 35th largest defence equipment manufacturer in the world, 2nd largest in Asia, and the largest in India. According to a report by SIPRI, India is the largest producer in the category of ’emerging producers’ in 2017, with four companies ranked in the Top 100.Their combined arms sales of $7.5 billion in 2017 were 6.1 percent higher than in 2016. The two largest Indian arms producers, Indian Ordnance Factories and Hindustan Aeronautics are the highest ranking (37th and 38th respectively) companies in 2017 among countries in the emerging producers’ category. The report also says that the arm sales of OFB have increased by 8.5% in the year of 2017–18. OFB’s arms sales are 96% of its total sales in the year of 2017.Its total sales were at $2 billion (₹13687.22 crores) in the year 2017–’18 History:- Ordnance Factory Board predates all the other organisations like the Indian Army and the Indian Railways by over a century. The first Indian ordnance factory can trace its origins back to the year 1712 when the Dutch Ostend Company established a Gun Powder Factory in Ichhapur. In 1787, another gunpowder factory was established at Ichapore; it began production in 1791, and the site was later used as a rifle factory, beginning in 1904. In 1801, Gun Carriage Agency (now known as Gun & Shell Factory, Cossipore) was established at Cossipore, Calcutta, and production began on 18 March 1802. This is the oldest ordnance factory in India still in existence.
* EAM:-The Minister of External Affairs (or simply Foreign Minister) is the head of the Ministry of External Affairs of the Government of India. One of the senior-most offices in the Union Cabinet, the chief responsibility of the Foreign Minister is to represent India and its government in the international community. The Foreign Minister also plays an important role in determining Indian foreign policy. Occasionally, the Foreign Minister is assisted by a Minister of State for External Affairs or the lower-ranked Deputy Minister of External Affairs.The current Minister of External Affairs is Subrahmanyam Jaishankar, succeeding Sushma Swaraj of the Bharatiya Janata Party on 30 May 2019
* The South Asian Association for Regional Cooperation (SAARC) is the regional intergovernmental organization and geopolitical union of states in South Asia. Its member states are Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka. The SAARC comprises 3% of the world’s area, 21% of the world’s population and 4.21% (US$3.67 trillion)of the global economy, as of 2019.The SAARC was founded in Dhaka on 8 December 1985.Its secretariat is based in Kathmandu, Nepal. The organization promotes development of economic and regional integration. It launched the South Asian Free Trade Area in 2006.The SAARC maintains permanent diplomatic relations at the United Nations as an observer and has developed links with multilateral entities, including the European Union. Economic data is sourced from the International Monetary Fund, current as of December 2019, and is given in U.S. dollars. The member states are Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka. *The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is an international organisation of seven nations of South Asia and Southeast Asia, housing 1.5 billion people and having a combined gross domestic product of $3.5 trillion (2018).The BIMSTEC member states are:- – Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand are among the countries dependent on the Bay of Bengal. Fourteen priority sectors of cooperation have been identified and several BIMSTEC centres have been established to focus on those sectors.A BIMSTEC free trade agreement is under negotiation (c. 2018), also referred to as the mini SAARC. Leadership is rotated in alphabetical order of country names. The permanent secretariat is in Dhaka, Bangladesh.There are 14 main sectors of BIMSTEC Trade & Investment Transport & Communication Energy Tourism Technology Fisheries Agriculture Public Health Poverty Alleviation Counter-Terrorism & Transnational Crime Environment & Disaster Management People-to-People Contact Cultural Cooperation Climate Change Sectors 7 to 13 were added at the 8th Ministerial Meeting in Dhaka in 2005 while the 14th sector was added in 11th Ministerial Meeting in New Delhi in 2008. Projects:- Coast shipping Power grid interconnections