PIB – August 19 , 2019


GS- 2 Paper

Topic covered- Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Regional Connectivity Scheme (RCS-Udan)

Context

The Minister of State (I/C) for Civil Aviation chairs meeting via video conference on Regional Connectivity Scheme (RCS-Udan) with States/UTs.

About the Scheme

  • Regional Connectivity Scheme (RCS-Udan) stands for Ude Desh ka Aam Nagrik.
  • UDAN is a flagship scheme of the Union Government to enable air operations on unserved routes, connecting regional areas, to promote balanced regional growth and to make flying affordable for masses.
  • The UDAN Scheme is a key component of the National Civil Aviation Policy (NCAP) which was launched in June 2016.

Objectives

  • The primary objective of RCS- Udan is to facilitate regional air connectivity by making it cheap and affordable.
  • To boost regional air connectivity and provide various incentives to airlines.
  • It promotes affordability of regional air connectivity is envisioned under RCS by supporting airline operators through: Concessions and Financial (viability gap funding or VGF) support.

Significance

  • The UDAN scheme seeks to provide connectivity to un-served and under-served airports of the country through revival of existing air-strips and airports.
  • The scheme gives India’s aviation sector a boost by giving a chance to small and first-time operators to be a part of the rapid growth in passenger traffic.
  • This first-of-its-kind scheme will ensure affordability, connectivity, growth and development.
  • Under it regional connectivity will be developed on market-based mechanism under which Airlines will bid for seat subsidies.

GS- 3 Paper

Topic coveredInvestment models.

Debenture Redemption Reserve

Context

Government removes Debenture Redemption Reserve requirement for Listed Companies, NBFCs and HFCs.

About the amendment in the Companies (Share Capital & Debentures) Rules

  • The Ministry of Corporate Affairs has amended the Companies (Share Capital & Debentures) Rules by removing Debenture Redemption Reserve requirement for Listed Companies, NCFCs and HFCs.

Objective of Amendments

  • Removing the requirement for creation of a DRR of 25% of the value of outstanding debentures in respect of listed companies.
  • NBFCs registered with RBI and for Housing Finance Companies registered with National Housing Bank (NHB) both for public issue as well as private placements.
  • Reduction in DRR for unlisted companies from the present level of 25% to 10% of the outstanding debentures.
  • Hitherto, Listed Companies had to create a DRR for both Public Issue as well as Private Placement of Debentures, while NBFCs & HFCs had to create DRR only when they opted for Public Issue of Debentures.
  • It is aimed at creating a level-playing field between NBFCs, HFCs and listed companies’ on the one hand and also between them and Banking Companies & All India Financial Institutions on the other, which are already exempted from DRR.
  • The measure has been taken by the Government with a view to reducing the cost of the capital raised by companies through issue of debentures and is expected to significantly deepen the Bond Market.
  • The rules, while retaining DRR requirement for Unlisted Companies, provide for reduction from a DRR of 25% to a DRR of 10% for such companies, so as to safeguard interests of investors.

What is a Debenture Redemption Reserve?

  • A debenture redemption reserve (DRR) is a provision stating that any Indian corporation that issues debentures must create a debenture redemption service in an effort to protect investors from the possibility of a company defaulting.
  • This provision was tacked onto the Indian Companies Act of 1956, in an amendment introduced in the year 2000.

Significance of the amendment

  • The measure has been taken by the government with a view to reducing the cost of the capital raised by companies through issue of debentures and is expected to significantly deepen the bond market, the release added.

GS-3 Paper

Topic covered- Conservation, environmental pollution and degradation, environmental impact assessment.

Draft National Resource Efficiency Policy

Context

Comments called for on the Draft National Resource Efficiency Policy Released.

About

  • The Draft National Resource Efficiency Policy was released by the Ministry for Environment, Forest and Climate Change for public comments.
  • The Draft National Resource Efficiency Policy (NREP) envisions a future with environmentally sustainable and equitable economic growth, resource security, healthy environment (air, water and land), and restored ecosystems with rich ecology and biodiversity.
  • The Draft National Resource Efficiency Policy is guided by the principles of-
  1. Reduction in primary resource consumption to ‘sustainable’ levels, in keeping with achieving the Sustainable Development Goals and staying within the planetary boundaries,
  2. Creation of higher value with less material through resource efficient and circular approaches,
  3. Waste minimization,
  4. Material security and creation of employment opportunities and business models beneficial to the cause of environment protection and restoration.
  • The Policy notes that the material consumption in India has increased by six times from 1.2 billion tonnes in 1970 to 7 billion tonnes in 2015.
  • It is expected to double by 2030, in view of rapid urbanisation, increasing population, and growing economic development.
  • These are expected to lead to serious resource depletion and environmental degradation.

Key features of the policy

  • The Policy seeks to enable efficient use of natural resources and promote upcycling of wastes across all sectors of the economy. 
  • The Policy aims toimplement resource efficiency for all resources and materials across all its life cycles including the stages of raw material extraction, processing, and production.
  • Authorities and Boards proposed by the policy: The Policy provides for the establishment of a National Resource Efficiency Authority (NREA) to oversee, administer and review implementation of the Policy.
  • Respective state governments and ministries will be responsible for developing and implementing resource efficiency strategies.
  • An inter-ministerial National Resource Efficiency Boardwill be established to provide guidance on critical aspects of implementation. 

Targets and Action Plans

  • The Policy aims to achieve India’s commitments under the UN Sustainable Development Goals (SDGs) by 2030. 
  • The SDGs consist of 12 goals including doubling the rate of global rate of improvement in energy efficiency by 2030, and ensuring sustainable food production systems.
  • The first Action Plan has been prepared for 2019-22.

For prelims-

IMAC and IFC-IOR

Context

Raksha Mantri visited the Information Management and Analysis Centre (IMAC) and Information Fusion Centre – Indian Ocean Region (IFC-IOR).

Highlights

  • The Information Management and Analysis Centre (IMAC) located in Gurgaon.
  • It is a joint initiative of Indian Navy, Coast Guard and Bharat Electronics Ltd to improve coastal surveillance and to provide coastal security to avert incidents like the 26/11 terror attack on Mumbai.

Key facts about IMAC

  • IMAC will be the single point centre interlinking the newly formed coastal radar chain of India.
  • It will be manned by the Navy and function under the National Security Adviser (NSA).
  • It is the nodal centre of the National Command Control Communications and Intelligence Network (NC3I Network) and National Maritime Domain Awareness (NMDA)

Key facts about Information Fusion Centre – Indian Ocean Region

  • The IFC-IOR stems from the importance of the Indian Ocean to world trade and security.
  • The need for the various maritime nations and organisations to collaborate towards enhancing maritime safety and security on the seas of this region.
  • It aims to utilize the collective wisdom and resources towards addressing myriad challenges in the region.
  • IFC-IOR will help interface and integrate, wherein, all partners and stakeholders would benefit from each other’s best practices and expertise.
  • The setting up of IFC-IOR underscores the governmental approach and effort in line with the vision of our Hon’ble Prime Minister, Shri Narendra Modi towards Security and Growth of All in the Region (SAGAR).

 

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