Insights Daily Current Affairs, 13 September 2016
Paper 2 Topic: Important International institutions, agencies and fora, their structure, mandate.
Extension of contract between India and the International Seabed Authority
The Union Cabinet has approved the extension of contract between Ministry of Earth Sciences, Government of India and the International Seabed Authority (ISA) for exploration of Polymetallic Nodules for a further period of 5 years (2017-22). The earlier contract is expiring on 24th March 2017.
Details:
- By extending the contract, India’s exclusive rights for exploration of Polymetallic Nodules in the allotted Area in the Central Indian Ocean Basin will continue.
- It would open up new opportunities for resources of commercial and strategic value in area beyond national jurisdiction.
- It would also provide strategic importance for India in terms of enhanced presence in Indian Ocean where other international: players are also active.
Background:
India signed a 15 year contract for exploration of Polymetallic Nodules (PMN) in Central Indian Ocean Basin with the International Seabed Authority (ISA) in March, 2002 with the approval of Cabinet. India is presently having an area of 75,000 sq.km., located about 2000 km away from her southern tip for exploration of PMN.
What are PMN?
Polymetallic nodules (also known as manganese nodules) are potato-shaped, largely porous nodules found in abundance carpeting the sea floor of world oceans in deep sea.
Composition:
Besides manganese and iron, they contain nickel, copper, cobalt, lead, molybdenum, cadmium, vanadium, titanium, of which nickel, cobalt and copper are considered to be of economic and strategic importance.
About ISA:
The International Seabed Authority (ISA) is an intergovernmental body based in Kingston, Jamaica, that was established to organize, regulate and control all mineral-related activities in the international seabed area beyond the limits of national jurisdiction, an area underlying most of the world’s oceans.
- It is an organization established by the 1982 United Nations Law of the Sea Convention. It was established in 1994.
- ISA governs non-living resources of seabed lying in international waters.
Sources: pib.
Paper 2 Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Bilateral Technical Arrangement between India and Switzerland
The Union Cabinet has given its approval for signing of the Technical Arrangement between India and Switzerland on the identification and return of Swiss and Indian Nationals and its implementation.
- Conclusion of the Bilateral Technical Arrangement (BTA) has been linked to the Visa Free Agreement for holders of Diplomatic passports as a package deal.
What is BTA?
The BTA essentially aims to formalise the existing procedure for cooperation on the return of irregular migrants between the two countries without introducing any additional obligations or exacting timeframes.
Significance of this BTA:
- If the BTA with Switzerland is approved as proposed, it would offer an opportunity to use the same as a model template for negotiations on the subject with other EU countries, which have been raising the issue regularly with us.
- It would also help to leverage the Readmission Agreement to liberalise visa and work permit regimes for legitimate Indian travellers. This has been envisaged as a key goal in the recently concluded India-EU Common Agenda on Migration and Mobility (CAMM).
Sources: pib.
Paper 2 Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Exchange of Tariff concessions under the Fourth Round of Negotiations APTA
The Union Cabinet has approved the exchange of tariff concessions, on Margin of Preference basis, under the Fourth Round of Negotiations under the Asia Pacific Trade Agreement and related amendments.
Details:
- The Cabinet has approved India’s offer 28.01% of dutiable national tariff lines with an average MoP of 33.45%. This will deepen the concessions being offered under this Agreement.
- Approval was also given to amend the preamble of APTA to effect accession of Mongolia as the 7th APTA Participating State.
- Other amendments to incorporate the Sectoral Rule of Origin to the Agreement were also approved.
- The Fourth Session of the Ministerial Council of APTA, which is scheduled to be held shortly, will formally implement all the above decisions.
About Asia Pacific Trade Agreement (APTA):
The Asia Pacific Trade Agreement or APTA (formerly the Bangkok Agreement) is an initiative under the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP) for trade expansion through exchange of tariff concessions among developing country members of the Asia Pacific Region.
- The current membership of APTA consists of six countries or Participating States (PSs), namely, Bangladesh, China, India, Lao PDR, Republic of Korea, and Sri Lanka.
- Since this is a preferential trade agreement, the basket of items as well as extent of tariff concessions are enlarged during the trade negotiating rounds which are launched from time to time. Till date, three rounds of trade negotiations have taken place.
Sources: pib.
Paper 2 Topic: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources, issues relating to poverty and hunger.
Cabinet approves establishment of Higher Education Financing Agency
The Union Cabinet has approved the creation of the Higher Education Financing Agency (HEFA) to give a major push for creation of high quality infrastructure in premier educational institutions.
Details:
- The HEFA would be jointly promoted by the identified Promoter and the Ministry of Human Resource Development (MHRD) with an authorised capital of Rs.2,000 crore. The Government equity would be Rs.1,000 crore.
- The HEFA would be formed as a SPV within a PSU Bank/ Government-owned-NBFC (Promoter). It would leverage the equity to raise up to Rs. 20,000 crore for funding projects for infrastructure and development of world class Labs in IITs/IIMs/NITs and such other institutions.
- The HEFA would also mobilise CSR funds from PSUs/Corporates, which would in turn be released for promoting research and innovation in these institutions on grant basis.
- The HEFA would finance the civil and lab infrastructure projects through a 10-year loan. The principal portion of the loan will be repaid through the ‘internal accruals’ (earned through the fee receipts, research earnings etc) of the institutions. The Government would service the interest portion through the regular Plan assistance.
- All the Centrally Funded Higher Educational Institutions would be eligible for joining as members of the HEFA. For joining as members, the Institution should agree to escrow a specific amount from their internal accruals to HEFA for a period of 10 years. This secured future flows would be securitised by the HEFA for mobilising the funds from the market. Each member institution would be eligible for a credit limit as decided by HEFA based on the amount agreed to be escrowed from the internal accruals.
Sources: pib.
Paper 2 Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
MoU between India and Kenya
The Union Cabinet has given its expost-facto approval for the Memorandum of Understanding (MoU) between India and Kenya on cooperation in the field of National Housing Policy Development and Management (NHPDM). The MoU was signed in July, 2016 at Nairobi during the visit of the Prime Minister of India.
Highlights:
- Under the MoU, both the sides will collaborate on all matters relating to housing and human settlements through various strategies including training of personnel, exchange visits, expos/exhibitions, conferences and workshops.
- The cooperation between the two countries will focus on upscaling slum upgradation and prevention initiatives based on the experience and implementation process of each country.
- They will collaborate on development and sharing of information on housing and real estate data base including market trends, best practices and investment opportunities.
Benefits of this agreement:
- It will encourage technical cooperation in facilitating access to affordable housing from locally available building materials.
- It will also encourage technical cooperation in development of Government/Public employee facilitated housing.
- This would be useful to explore ways of a delivery model towards Government employees housing scheme, including creating an enabling environment for participation in the delivery of such intended scheme by private sector players.
Sources: pib.
Paper 2 Topic: Statutory, regulatory and various quasi-judicial bodies.
Cabinet approves creation of GST Council and its Secretariat
The Union Cabinet has approved setting up of GST Council and setting up its Secretariat.
Details:
- The GST Council has been created as per Article 279A of the amended Constitution.
- GST Council Secretariat will be set up with its office at New Delhi.
- The Secretary (Revenue) will be appointed as the Ex-officio Secretary to the GST Council.
- The Chairperson, Central Board of Excise and Customs (CBEC), will be included as a permanent invitee (non-voting) to all proceedings of the GST Council.
- One post of Additional Secretary to the GST Council in the GST Council Secretariat (at the level of Additional Secretary to the Government of India) will be created.
- Four posts of Commissioner in the GST Council Secretariat (at the level of Joint Secretary to the Government of India) will also be created.
As per Article 279A of the amended Constitution, the GST Council which will be a joint forum of the Centre and the States, shall consist of the following members:
- Union Finance Minister-Chairperson.
- The Union Minister of State, in-charge of Revenue of finance-Member.
- The Minister In-charge of finance or taxation or any other Minister nominated by each State Government-Members.
Functions performed by the council:
As per Article 279A (4), the Council will make recommendations to the Union and the States on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws, principles that govern Place of Supply, threshold limits, GST rates including the floor rates with bands, special rates for raising additional resources during natural calamities/disasters, special provisions for certain States, etc.
Background:
The Constitution (One Hundred and Twenty-second Amendment) Bill, 2016, for introduction of Goods and Services tax in the country was accorded assent by the President recently, and the same has been notified as the Constitution (One Hundred and First Amendment) Act, 2016.
As per Article 279A (1) of the amended Constitution, the GST Council has to be constituted by the President within 60 days of the commencement of Article 279A.
Sources: pib.
Paper 2 Topic: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.
Third Phase of Technical Education Quality Improvement Programme (TEQIP)
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, has approved the proposal for initiation of the Third Phase of Technical Education Quality Improvement Programme (TEQIP).
Key facts:
- The Project will be implemented as a ‘Central Sector Scheme’ with total project outlay of Rs. 3600 crore.
- External assistance from the World Bank through International Development Association (IDA) is also being given.
- The project will be implemented with the facility of Direct Funds Transfer to the accounts of beneficiary institutes.
- The Focus States are 7 Low Income States (Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Rajasthan and Uttar Pradesh), 3 Hill States (Himachal Pradesh, Jammu & Kashmir and Uttarakhand), 8 North-Eastern States (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura) and Union Territory of Andaman and Nicobar Islands.
About the Technical Education Quality Improvement Programme (TEQIP):
The Technical Education Quality Improvement Programme (TEQIP) commenced in 2003 with World Bank assistance as a long term programme to be implemented in three phases.
- The first phase of TEQIP commenced in 2003 and ended on March 31st, 2009. It covered 127 institutes across 13 States including 18 Centrally Funded Technical Institutions (CFTIs).
- TEQIP-II commenced in August 2010, covering 23 States/Union Territories (UTs) and 191 Institutes (including 26 CFTIs). TEQIP-II is scheduled to conclude in October, 2016.
The major outcomes of the project will be:
- Better academic standards, through accreditation, filling up faculty positions, training faculty in better teaching methods, improved research outputs in institution in Focus States/UTs.
- Better administration of the institutions with improved financial/academic autonomy.
- Better systems for assessment of Student Learning, higher transition rates.
- Transparent and expeditious release of funds to institutes by way of Direct Funds Transfer (DFT) System.
Sources: pib.
Facts for Prelims:
- The Union Cabinet has approved the signing and ratification of the Extradition Treaty between India and Afghanistan. The treaty would provide a legal framework for seeking extradition of terrorists, economic offenders and other criminals from and to the Afghanistan.
- Deepa Malik has created history by winning silver medal in Women’s shot put at the 2016 Rio Paralympics. With this she has become the first Indian woman to win a medal at the Paralympics.
