Current Affairs 4 September 2020 – IAS Current Affairs

Current Affairs 4 September 2020 focuses on Prelims-Mains perspective. Major events are :

1. MEIS benefits Capping affect traders
2. UNSC Reject Pakistan Move to list two Indians as global terrorists
3. Cross-Border Movement at G-20 India proposes principle
4. Nutraceutical-immunity boosting products-PMBJP
5. Concerns on EIA notification

MEIS benefits Capping affect traders

Why in News ?

The government’s decision to cap export incentives under MEIS scheme at Rs. 2 crore per exporter on outbound shipments made during September-December, 2020 is going to seriously affect traders according to FIEO.

What is the Decision ?

The government capped the benefits under the Merchandise Export from India Scheme (MEIS) at Rs 2 crore per exporter on exports made between September 1, 2020 to December 31, 2020 without changing the coverage of the scheme and the applicable rates.

Merchant Export from India Scheme (MEIS)

• Launched by the Government of India to boost the export of notified goods that are produced or manufactured in the country.
• The scheme has been introduced through the Foreign Trade Policy (FTP) and came into effect on 1 April 2015.
• Making India’s products more competitive in the global markets the scheme provides incentive in the form of duty credit scrip to the exporter to compensate for his loss on payment of duties.
• To offset infrastructural inefficiencies and the associated costs of exporting products produced in India giving special emphasis on those which are of India’s export interest and have the capability to generate employment and enhance India’s competitiveness in the world market.
• To determine the quantity of incentive the countries have been segregated into three groups
  • Group A has India’s traditional destinations such as the EU countries and USA.
  • Group B has the maximum number of countries and covers almost all of India’s major export destinations globally. It is worth mentioning here that Group B has the highest quantum of incentive.
  • Group C on the other hand has no incentive at all. It can be divided into, SAARC, Australia and New Zealand, some EU and African countries.
• MEIS duty credit scrip can be transferred or used for payment of a number of duties including the basic customs duty.

Why government decide to cap export incentives ?

The move is aimed to protect genuine exporters and allow them to claim benefits for exports in the period besides reducing the possibility of fraud by taking new IEC to circumvent the cap while advance notice of four months of the end date of MEIS provides certainty for future pricing decisions.

Import Export Code : A 10 digit identification number that is issued by the DGFT (Director General of Foreign Trade), Department of Commerce, Government of India.

• New Import Export Code (IEC) obtained on or after September 1 will be ineligible to submit any MEIS claim for exports.
• Any IEC holder who has not made any exports for a period of one year preceding 1-9-2020 or any new IECs obtained on or after 1st September would not be eligible for submitting any claim under MEIS.
• In addition, it has been notified that MEIS scheme is withdrawn with effect from January 1, 2021.
• MEIS is not consistent with the trade rules of the World Trade Organization.
• Instead, Remission of Duties or Taxes On Export Product (RoDTEP) will replace MEIS.
  • To reimburse taxes and duties paid by them such as value added tax, coal cess, mandi tax, electricity duties and fuel used for transportation.
  • These are not getting exempted or refunded under any other existing mechanism.
  • The Ministry of Finance has set up a committee under the chairmanship of former commerce and home secretary GK Pillai to finalise the rates under RoDTEP. 

What are the concerns ?

• Exports that will be made during September-December are based on orders that had been negotiated earlier, factoring in the existing Merchant Export from India Scheme (MEIS) benefit.
• These benefits are part of the export competitiveness and therefore the sudden change will affect exporters financially as buyers were not going to revise their prices upwards.

Source : The Hindu

Topics

Prelims : Remission of Duties or Taxes On Export Product, Merchant Export from India Scheme (MEIS)

GS II : Government policies and interventions for development in various sectors and issues arising out of their design and implementation

UNSC Reject Pakistan Move to list two Indians as global terrorists

What is the News ?

The US, UK, France, Germany and Belgium on Wednesday decided to block Pakistan’s move to list two Indian nationals as global terrorists under the UN Security Council 1267 sanctions committee.

About the move

• Listing requests concerned two Indian nationals, identified as Gobinda Patnaik Duggivalasa and Appaji Angara.
  • Angara has been accused of the attack on Army School in Peshawar on December 16, 2014.
  • Duggivalasa accused of a terror attack on Siraj Raisani, a Pakistani politician, on July 13, 2018 160 pople killed.
• Accusing them of terror attacks in Balochistan and Peshawar citing registered FIRs against them.
• In fact Pakistan has tried to get four Indian nationals listed as global terrorists and four, who were working in Afghanistan have left the country and returned to India.
• In the past months, Pakistan, with China’s help, has submitted proposals to designate six Indians as global terrorists.

United Nation Security Council (UNSC)

• The Security Council has primary responsibility for the maintenance of International peace and security.
• The council has 15 members :
  • 5 Permanent – US, UK, Russia, France and China
  • 10 members elected by the General Assembly for 2-year terms.
• Present ten non-permanent members (with end of term date) are
  • Belgium
  • Dominican Republic
  • Estonia, Germany
  • Indonesia
  • Niger
  • Saint Vincent and the Grenadines
  • South Africa
  • Tunisia
• While other organs of the UN can only make recommendations‖ to member states, the Security Council has the power to make binding decisions on member states. 
• All the members have one vote and permanent members have veto power.
• Decisions on procedural matters should have vote of at least 9 of the 15 members and decision on substantive matters require nine votes and the absence of negative vote by any of the 5 permanent members. 
• The presidency of the Security Council rotates alphabetically each month. 

Nations Seeking Reforms and Their Demand

• G4 Nations : 4 countries bids for permanent seats in UNSC. They are Brazil, Germany, India, and Japan.
• Uniting for Consensus (Coffee Club) : These are group of countries who are opposing the expansion of permanent seats in the United Nations Security Council under the leadership of Italy. 
• Other Members in Coffee Club : Spain, Malta, San Marino , Pakistan , South Korea, Canada , Mexico, Argentina, Colombia and Turkey. 

Source : Indian Express

Topics

Prelims : resolution 1267, United Nation Security Council (UNSC)

GS II : Important International institutions, agencies and fora- their structure, mandate

Cross-Border Movement at G-20 India proposes principle

Why in News ?

Saudi Arabia hosted the G-20 foreign ministers’ meeting with focus on cross-border movement amid the pandemic, India proposed development of voluntary G-20 Principles on Coordinated Cross-Border Movement of People.

G20 Principles on Coordinated Cross-Border Movement of People

• Three elements
  • Standardisation of testing procedures and universal acceptability of test results
  • Standardisation of Quarantine procedures
  • Standardisation of movement and transit protocols
• The discussions on strengthening international cooperation across borders in wake of Covid-19.
• Also exchanged national experiences and lessons learned from cross-border management measures taken in response to the pandemic.
• Ensure that interests of foreign students are protected and movement of stranded seafarers back to their home country is facilitated.

Vande Bharat Mission

The Vande Bharat Mission was started in early May to return Indians stranded abroad due to corona virus restrictions.

• Centre has decided to operate 64 Air India flights from May 7 to May 13 to bring back around 15,000 stranded Indians from 12 countries
• More than 15 lakh people have returned through various modes, including more than 4.5 lakh on flights, under the Vande Bharat Mission.
• The mission was carried out in phased manner.

Source : Indian Express

Topic

Prelims : About G20

GS II : Important International institutions, agencies and fora- their structure, mandate

Nutraceutical-immunity boosting products-PMBJP

Why in News ?

Union Minister of Chemicals & Fertilizers launched 8 immunity boosting products under Pradhan Mantri  Bhartiya Janaushadhi Priyojana (PMBJP) for sale through Janaushadhi Kendras across country. Nutraceutical-immunity boosting products.

What is Nutraceutical-immunity boosting products

• Launched new nutraceuticals in the view of the Corona-19 pandemic.
• Products aims in boosting immunity of the people and products are comparable in quality and are cheaper by over 26% than the market price.
• Using massive network of Janaushadhi Kendras, the immunity boosting- protein products will reach a large population promoting good health.
• Government is also now providing many nutraceuticals like protein supplements, malt-based nutrition drinks, immunity booster etc for improving overall health and nutritional condition of people.
• Need for Such products
  • Around one million patients visit our 6500 plus stores every day, to purchase quality generic & affordable medicines.
  • This scheme is becoming a boon for patients who are supposed to take medicines for chronic ailments like diabetes, blood pressure, psychotropic, etc.
• About Nutraceutical Product : A malt-based food fortified with Vitamin A, D, E, C, B1, B2, B6, B12, Iron, Calcium and Folic acid, etc. to support immunity and growth. Available in various flavours and prices.

Source : PIB

Topic

Prelims : Pradhan Mantri  Bhartiya Janaushadhi Priyojana (PMBJP), Nutraceutical-immunity boosting products

GS II : Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections

Concerns on EIA notification

Why in News ?

A group of Special Rapporteurs to the United Nations written to the Centre expressing concern over the proposed Environment Impact Assessment (EIA) notification 2020 and sought the government’s response on how the provisions of the notification were consonant with India’s obligations under international law. Special Rapporteurs to the United Nations raised Special Rapporteurs to the United Nations.

What is the Issues ?

• Proposed notification appeared to have clauses that obstructed people’s rights to a safe, clean and healthy environment.
• These were the clauses that exempted several large industries and projects from public consultation as part of the environment impact assessment process
• The rapporteurs argued that the exemptions were unwarranted, particularly when there was a serious gas leak from (LG Polymers) chemical plant in Visakhapatnam on May 12.

About EIA notification

Recently, the Ministry of Environment, Forest and Climate Change (MoEFCC) has proposed a draft Environmental Impact Assessment (EIA) notification 2020, that seeks to replace the current notification of 2006.

• What is EIA ?
  • EIA is the process for evaluating environmental impact of a proposed project.
  • It is a process by which opinion of the people are taken into consideration for granting final approval to any developmental project or activity.
  • It decide whether the project should be approved or not.
• What is the criticism ?
  • There are two prominent changes : one, post facto clearances; two, abandoning the public trust doctrine.
    1. Draft notification does not conform to its parent Act the Environment (Protection) Act 1986. The Act requires the Centre to take measures to protect and improve the environment. New notification reducing the ambit and stringency of the scrutiny of impact assessment.
    2. The proposed mechanism allows the government to grant an ex post facto environmental clearance to projects even though that have commenced illegally without a clearance.
    3. There is no mention of climate change and related consideration.
    4. The public consultation processes currently in force under the EIA Notification 2006 are already unsatisfactory the new draft notification curtails their scope further.
    5. No effort to put in place processes that will improve the quality of decision making.
    6. The 2006 notification required that the project proponent submit a report every six months, the new draft requires the promoter to submit a report only once every year.
    7. Draft also says that violations can be reported only by the government and the project proponent themselves and not by citizens.

Indian Environment Conservation History

• 1972 : Become a signatory to the Stockholm Declaration (1972) on Environment.
• 1974 : India enacted laws to control water pollution.
• 1981 : India enacted laws to air pollution soon after.
• 1986 : After the Bhopal gas leak disaster in 1984 India legislated Environmental Protection Act in 1986.
• 1994 : India notified its first EIA norms.
• 2006 : EIA notification was replaced with a modified draft .
• 2020 : Latest draft EIA notification introduced.

Government Stand

• The proposed EIA, 2020 violated the UN Declaration of Human Rights and that the rapporteurs concerns were misplaced.
• Proposed EIA was still a draft and issued for public consultation and that there were several imperfections in the existing EIA that were to be amended in the new notification.
• Post facto clearances, the violation of not taking prior approval would be punished as per law.
• Projects that were already running would be considered only on merit.

Need for an EIA

• International Funding and Support
  • World Bank, which has been funding solar projects in India, insists on an effective EIA as a prerequisite. 
  • Other multilateral development banks are expected to ask for an EIA even under the terms of the new notification
  • The country is a party to the Rio declaration adopted by the United Nations Conference on Environment and Development (UNCED) in 1992.
• Public participation
  • Vulnerable population typically affected by ‘development’ projects.
  • Gujarat high court in Centre for Social Justice v. Union of India, when it insisted on a minimum of 30 days for public hearing.
• Environment Pollution
  • Absence of effective environmental scrutiny of an area that, according to the Delhi Pollution Control Committee, accounts for 30% of air pollution is beyond legal justification.

Source : The Hindu

Topic

Prelims : EIA

GS III : Conservation, environmental pollution and degradation, environmental impact assessment

Current Affairs 4 September 2020 : Our major Sources for the Current Affairs are The Hindu, Indian Express, PIB. For more queries and mentor-ship please contact us.