Daily Current Affairs 25 June 2024 | Latest News | Download PDF

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CURRENT AFFAIRS : BANKING & FINANCE

Government Considers Establishing New Bank to Address Credit Gap for Micro, Small and Medium Enterprises

• The government is considering a proposal to set up a separate bank for direct lending to the micro, small and medium enterprises (MSMEs) to deepen credit flows to the under-penetrated sector and thereby boost economic activity and job creation.
• Large banks don’t understand the requirements of the MSMEs.

Key Highlights :

• Current Credit Scenario:Currently, the Small Industries Development Bank of India (SIDBI) largely provides refinancing to banks that lend to MSMEs, which helps reduce the cost of finance for these units.

SIDBI Background:

• Established under an Act of Parliament in 1990.
• Majority shareholders include the Government of India (20.85%), State Bank of India (15.65%), Life Insurance Corporation of India (13.33%), and National Bank for Agriculture and Rural Development (9.36%).
• Accesses low-cost funds provided by banks against shortfalls in meeting their priority sector lending (PSL) targets.
• Micro and small enterprise (MSE) Refinance allocation for FY24 was Rs 84,000 crore.
• State Financial Corporations: Other entities like state financial corporations and state industrial development corporations also lend directly to MSMEs.
• Credit Penetration:MSME credit penetration in India is 14%, compared to 50% in the US and 37% in China.
• There is a credit gap of Rs 25 trillion for the Indian MSME sector, indicating a large untapped credit market.
• Ownership Structure: The ownership structure of the proposed bank might include a hybrid public-private partnership model.
• The outstanding credit to the MSMEs by scheduled commercial banks expanded by 20.9% annually to Rs 26 trillion at the end of December 2023.
• MSME Sector Impact:The64 million-strong MSMEs are the backbone of the Indian economy.
• MSMEs are crucial to the Indian economy, accounting for over 110 million jobs (23% of the labor force).
• They contribute 27% of India’s GDP, 38.4% of total manufacturing output, and 45% of total exports.
• Interest Rates: There is a suggestion that MSMEs should receive loans at the same interest rates as housing loans (6% for exports and 8% for domestic production).
• Currently, interest rates for MSMEs are 11-13% and 8-9% for exports.
• Declining Credit Share: MSME credit as a share of their output has declined to around 8.3% from 12% earlier.

What do you mean by MSME?

• MSME was introduced by the Government of India in agreement with the MSMED (Micro, Small, and Medium Enterprises Development) Act of 2006.
• As per this act, MSMEs are the enterprises involved in the processing, production, and preservation of goods and commodities.

Classification of MSMEs?

CLASSIFICATION	Micro	Small	Medium
Manufacturing Enterprises and Enterprises rendering Services	Investment in Plant and Machinery or Equipment:   Not more than Rs.1 crore and Annual Turnover ; not more than Rs. 5 crore	Investment in Plant and Machinery or Equipment:   Not more than Rs.10 crore and Annual Turnover ; not more than Rs. 50 crore	Investment in Plant and Machinery or Equipment:   Not more than Rs.50 crore and Annual Turnover ; not more than Rs. 250 crore

What is Credit Penetration?

• Credit penetration is a metric that assesses the proportion of a population utilizing credit cards or other credit products.
• It serves as an indicator of financial inclusion and can be evaluated alongside other metrics such as branch penetration and deposit penetration.

About Small Industries Development Bank of India :

• Headquarters : Lucknow, Uttar Pradesh, India
• Chairman & MD : Sivasubramanian Ramann
• The SIDBI is the apex regulatory body for overall licensing and regulation of micro, small and medium enterprise finance companies in India.
• It is under the jurisdiction of the Ministry of Finance , Government of India (GoI).

Reinsurance and Coinsurance Exempt from Taxation

• The Goods and Services Tax (GST) Council has clarified that reinsurance and coinsurance are not considered as the supply of a service and hence are not liable for GST.
• This spells a significant breather to insurance companies facing thousands of crores in tax demands.
• This decision provides relief to insurance companies facing tax demands amounting to approximately Rs 12,000 crore.

What is coinsurance and reinsurance?

• Coinsurance, in this instance, refers to insurers sharing insurance-bearing liabilities.
• Reinsurance is the cover an insurer buys to insure itself through the payment of premiums.

Key Highlights :

• Background and Industry Concerns:TheDirectorate General of Goods and Services Tax Intelligence (DGGI) had issued notices to about 20 insurance companies for non-payment of GST on coinsurance and reinsurance premiums.
• The General Insurance Council had lobbied the government for clarity, arguing that GST should be levied only once in the insurance chain to avoid double taxation.
• GST Council’s Decision:The GST Council clarified that coinsurance premiums apportioned by the lead insurer to the coinsurer for supplying insurance services are considered “no supply” under Schedule III of the CGST Act, 2017.
• Past cases are to be regularized on an “as is-where is” basis, providing relief to affected companies.
• Implications and Benefits:These decisions are aimed at reducing ongoing litigation and compliance burdens in the insurance sector.
• Other Decisions by GST Council:Addressing ambiguity regarding the applicability of the flexible valuation framework on import of services by related parties, including transactions between head and branch offices.
• Exemption of compensation cess on imports at special economic zones for authorized operations, effective from July 1, 2017.
• Exemption of GST on services provided by special purpose vehicles to the Indian Railways and statutory collections made by state Real Estate Regulatory Authorities.

SBI Chairman Dinesh Kumar Khara Announces Plan to Establish 400 New Branches Nationwide in FY25  

• As a part of the network expansion plan, State Bank of India (SBI) is planning to open 400 branches across the country in the current financial year.
• The country’s biggest lender opened 137 branches last fiscal.
• Of the total, 59 new rural branches were launched.
• SBI has a network of 22,542 branches across the country as of March 2024.

Key Highlights :

• Capital Infusion in SBI General Insurance: SBI infused additional capital amounting to Rs 489.67 crore in SBI General Insurance Company Ltd during FY24.
• This investment slightly reduced SBI’s stake from 69.95% to 69.11%.
• Financial Performance of SBI General Insurance: SBI General Insurance reported a 30.4% increase in net profit to Rs 240 crore for the financial year ended March 2024, up from Rs 184 crore in the previous fiscal year.
• SBI Payment Services Private Limited: SBI Payment Services Private Limited, which is in the merchant acquiring business, is 74% owned by SBI, while the remaining stake is with Hitachi Payment Services.

About SBI : 

• Established : 1 July 1955
• Headquarters : Mumbai, Maharashtra, India
• Chairman : Dinesh Kumar Khara
• CFO : Kameshwar Rao Kodavanti

Recent News :

• In June 2024, SBI plans to raise Rs 20,000 crore through long-term bonds in the current financial year for funding infrastructure projects and affordable housing units.

Insolvency and Bankruptcy Board of India to Strengthen Creditors’ Rights over Personal Guarantors  

• The Insolvency and Bankruptcy Board of India (IBBI) has proposed amendments to the Insolvency Resolution Process for Corporate Process regulations, to enhance efficiency and reduce costs, and sought stakeholder inputs by July 10, 2024.
• These amendments are expected to enhance the efficiency and transparency of the Corporate Insolvency Resolution Process (CIRP), and benefit creditors and other stakeholders involved in the CIRP.

Key Highlights :

• Valuation Report : The IBBI, proposed that the registered valuer should submit a comprehensive valuation report for the corporate debtor as a whole, rather than separate valuations for different asset classes.
• This proposal seeks to eliminate inconsistencies between the CIRP regulations and the Companies (Registered Valuers and Valuation) Rules.
• Valuation for Small Entities : For companies with an asset size of up to Rs 1,000 crore and micro, small and medium enterprises (MSMEs), the board proposes to appoint only one registered valuer for providing the estimates of the fair value and the liquidation value.
• If the Committee of Creditors decides to have two valuers due to complexities, it must record the reasons before the resolution professional appoints them.
• Cost Reduction:This measure is intended to reduce CIRP costs and expedite the process for small entities.
• Appointment of Authorised Representatives:To prevent delays, the IBBI proposes allowing the interim resolution professional to enable authorised representatives to participate in Committee of Creditors meetings immediately after applying for their appointment.
• Rights of Creditors:The proposal addresses the release of guarantees in the resolution plan.
• It states that such proposals will not extinguish creditors’ rights to proceed against guarantors and enforce the realisation of guarantees through various agreements.

About IBBI :

• Headquarters : New Delhi, Delhi
• Chairman : Ravi Mittal
• Parent Department : Ministry of Corporate Affairs
• The IBBI is the regulator for overseeing insolvency proceedings and entities like Insolvency Professional Agencies (IPA), Insolvency Professionals (IP) and Information Utilities (IU) in India.
• It was established on 1 October 2016 and given statutory powers through the Insolvency and Bankruptcy Code, which was passed by Lok Sabha on 5 May 2016.

CURRENT AFFAIRS: NATIONAL NEWS

The government enhances allocation for the Fertilizer Sector under the SIGHT Programme of the National Green Hydrogen Mission (NGHM)

• The Ministry of New & Renewable Energy (MNRE) is spearheading the National Green Hydrogen Mission (NGHM), aiming to achieve a production capacity of 5 million tonnes per annum of Green Hydrogen by 2030.
• This initiative aligns with India’s goal of becoming self-reliant through clean energy and serves as a significant step towards the global clean energy transition.

National Green Hydrogen Mission (NGHM)

• Objective: To achieve a production capacity of 5 million tonnes per annum of Green Hydrogen by 2030.
• Launch Date: January 4, 2023.
• Financial Outlay: ₹19,744 crores up to FY 2029-30.
• Key Benefits:
  • Significant decarbonization of the economy.
  • Reduced dependence on fossil fuel imports.
  • Establishing India as a leader in Green Hydrogen technology and market.

SIGHT Programme – Component II

• Component II: Incentive for Procurement of Green Ammonia Production (under Mode 2A):
  • Focus: Primarily caters to the fertilizer sector.
  • Initial Allocation: 5,50,000 tonnes per annum of Green Ammonia.
  • Amended Allocation: Increased by 2 lakh tonnes per annum to a new total of 7,50,000 tonnes per annum.

Recent Developments

1. Scheme Guidelines Issued:
   • Date: January 16, 2024.
   • Purpose: To provide detailed guidelines for the implementation of the SIGHT Programme’s Component II.
2. Solar Energy Corporation of India (SECI) Action:
   • Issued Request for Selection (RfS) to select Green Ammonia Producers through a cost-based competitive bidding process.
3. Amendment to Scheme Guidelines:
   • Reason: To respond to the increasing demand for Green Ammonia from the fertilizer sector.
   • New Allocation: Increased from 5,50,000 tonnes to 7,50,000 tonnes per annum.

Expected Impact

• Decarbonization: The mission will lead to significant reductions in carbon emissions by promoting the use of Green Hydrogen and its derivatives.
• Economic Benefits:
  • Enhanced energy security.
  • Reduced reliance on imported fossil fuels.
  • Promotion of technological advancements in Green Hydrogen.
• Global Leadership: India is poised to become a global leader in the Green Hydrogen sector, driving innovation and setting benchmarks for sustainable energy practices.

The National Green Hydrogen Mission exemplifies India’s commitment to sustainable energy and its proactive approach to addressing climate change while promoting economic growth and energy security.

Delhi’s IGI Airport launches fast-track immigration programme for Indian passport holders and OCI cardholders

• Union Home Minister Amit Shah inaugurated the ‘Fast Track Immigration-Trusted Traveller Programme (FTI-TTP)’ at Delhi Airport’s Terminal 3, aimed at enhancing the travel experience for Indian nationals and OCI cardholders.

Overview of FTI-TTP

• Objective: Provide faster, easier, and more secure travel experience for Indian passport holders and OCI cardholders.
• Implemented by: the Ministry of Home Affairs (MHA), Ministry of Civil Aviation, and Bureau of Immigration.
• Inspiration: Similar to the Global Entry Program of the United States Department of Homeland Security.
• Benefits:
  • Allows use of dedicated e-gates at Terminal 3 to bypass regular immigration queues.
  • Facilitates smoother arrival and departure processes.

Application Process

• Website: Interested applicants can apply through www.ftittp.mha.gov.in.
• Registration: The process may take up to one month.
• Eligibility: Requires an Indian passport with a minimum six months validity at the time of application.
• Membership Duration: Co-terminus with passport validity.

Operational Details

• Infrastructure: Terminal 3 is equipped with eight electronic gates (four for arrivals and four for departures).
• Passenger Traffic: Delhi Airport connects 80 domestic and 70 international destinations.
  • Q4 FY24: 19.2 million passengers (8.2% YoY increase).
  • FY24 Total: 73.7 million passengers (12.8% YoY increase).

About FTI-TTP

Fast Track Immigration – Trusted Travellers’ Programme (FTI-TTP) has been initiated to speed up the Immigration clearance process for eligible persons from the following categories:

1. Indian Nationals
2. Foreign Nationals holding OCI Card

• Applicants found eligible, will need to provide Biometrics (fingerprint and face image) in addition to required information as per data fields provided in the application form. The enrolment to the programme shall be done after necessary verifications and fulfilment of eligibility.
• However, those travellers who may be required by Law Enforcement Agencies and Courts to join investigations can be suspended from this programme even after enrolment.

Less than 2% of taxpayers served CGST notices

• Finance Minister Nirmala Sitharaman recently addressed concerns regarding GST (Goods and Services Tax) assessments and issued updates following the GST Council meeting.

Simplification and Assessee Notices

• Intent: The government aims to simplify the GST process for taxpayers and reduce complexity.
• Notice Statistics: Only 1.96% of active GST assessees (1,14,939 out of 58,62,882) received notices from the Central GST administration as of December 31, 2023.
• State Notices: States have the authority to issue their own notices, but this falls outside the Central GST administration’s purview.

GST Council Decisions

• Interest and Penalty Waiver: Waiver proposed on interest and penalties for demand notices under Section 73 of the CGST Act for the period from 2017-18 to 2019-20, conditional upon full remittance by March 2025.
• Amendments to CGST Act: Proposed amendments to allow a three-month filing period for appeals before the Appellate Tribunal, starting from a government-notified date. This provides adequate time for taxpayers involved in pending cases to file appeals.

Future Steps

• Legislative Amendment: Recommendations from the GST Council, including those related to waivers and procedural changes, are likely to be incorporated into the upcoming Finance Bill alongside the Union Budget for 2024-25.
• Impact: These measures are aimed at easing compliance burdens and providing relief to taxpayers, ensuring a more efficient GST framework.

Tribal Affairs Ministry to Review ₹72,000 Crore Great Nicobar Project

• Union Tribal Affairs Minister Jual Oram has announced that his ministry will scrutinize the forest clearance documentation related to the ₹72,000-crore infrastructure project on Great Nicobar Island.
• The project, pushed by the NDA government, will undergo a comprehensive assessment to determine the next course of action.

Focus on Tribal Land and Forest Rights

• In an exclusive interview with The Hindu, Minister Oram highlighted his commitment to prioritizing the forest and land rights of tribal communities.

High-level govt committee flags payment delay concerns in PLI schemes

• A high-level government committee has expressed concerns regarding delays in payments to companies participating in the Production Linked Incentive (PLI) schemes.
• The committee, chaired by the Cabinet secretary and comprising representatives from DPIIT, NITI Aayog, the Department of Economic Affairs, and Department of Financial Services, has highlighted the need for corrective actions to ensure smooth implementation of the PLI schemes.

Financial Allocation and Implementation Status

• Three years ago, the government allocated Rs 1.97 trillion across 14 PLI schemes targeting sectors such as mobiles, drones, solar, telecom, textile, and automobiles.
• As of December 2023, investments totalling Rs 1.06 trillion have been made under these schemes, contributing to the creation of nearly 500,000 jobs.

What is the Production Linked Incentive Scheme (PLI)?

• The PLI scheme was conceived to scale up domestic manufacturing capability, accompanied by higher import substitution and employment generation.
• Launched in March 2020, the scheme initially targeted three industries:
• Mobile and allied Component Manufacturing
• Electrical Component Manufacturing and
• Medical Devices.
• The second round of the scheme was announced in 2021 for 14 sectors like telecommunication, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones, and pharma.
• In the PLI scheme, Domestic and Foreign companies receive financial rewards for manufacturing in India, based on a percentage of their revenue over up to five years.

Informal entities in manufacturing lost 5.4 million jobs in 7 years

• According to an analysis of the Annual Survey of Unincorporated Sector Enterprises (ASUSE) by the National Statistical Office (NSO), unincorporated enterprises in the manufacturing sector experienced significant declines between July 2015-June 2016 and October 2022-September 2023.

Business Closure and Job Losses

• During this period, the manufacturing sector witnessed a reduction of nearly 1.8 million unincorporated establishments, marking a decline from 19.7 million to 17.82 million enterprises.
• Correspondingly, the sector shed approximately 5.4 million jobs, with employment falling from 36.04 million to 30.6 million workers.

Impact of the Pandemic

• Despite a temporary recovery from post-pandemic lows in April 2021-March 2022, where 11.7 million workers were added back into the informal sector, the total employment figure of 109.6 million in October 2022-September 2023 remained below pre-pandemic levels.

Centre likely to issue green bonds worth over ₹25,000 crore in FY25

• The upcoming Union budget for FY25 is anticipated to include a proposal to issue sovereign green bonds amounting to approximately ₹25,000 crore to ₹30,000 crore.
• This issuance is planned as part of the government’s borrowing schedule for the fiscal year, with a significant portion likely to be offered during the second half.

Commitment to Green Finance

• This move underscores the government’s commitment to scaling up green finance initiatives, responding to market demand for sustainable investment opportunities.
• Green bonds serve as fixed-income investments aimed at financing projects with positive environmental impacts, aligning investor financial goals with environmental sustainability.

Previous Issuances and Future Plans

• In FY23, the government raised ₹16,000 crore through sovereign green bonds, a figure increased to ₹20,000 crore in FY24.
• The projected increase to ₹25,000-30,000 crore for FY25 reflects ongoing efforts to expand green finance initiatives significantly.

Details of FY25 Green Bond Plan

• For H1 of FY25, the government plans to raise ₹12,000 crore through green bonds.
• Previously, the FY24 budget did not initially mention green bonds but later included a phased ₹20,000 crore plan for the latter half of the borrowing calendar.

Recent Bond Offerings

In recent months, the government has sold green bonds including:

• ₹5,000 crore with a five-year tenure in November 2023,
• Two tranches of ₹5,000 crore each for 30-year bonds sold in January and February 2024,
• An additional ₹5,000 crore bond sold by March 2024.

Railway capex allocation may touch Rs 2.6 trillion

• According to a senior official in the Ministry of Railways, the gross budgetary support (GBS) is likely to either maintain the same level as announced in the Interim Budget or potentially increase to Rs 2.6 trillion.
• In the Interim Budget for 2024-25, Finance Minister Nirmala Sitharaman had already allocated Rs 2,52,200 crore as GBS to the railways, supplemented by an additional Rs 10,000 crore from extra-budgetary resources (EBR).

Continued Infrastructure Focus

• The government’s commitment to infrastructure development, particularly in the railways sector, remains steadfast.
• This sector is deemed critical for long-term investment and is expected to receive sustained attention over the next decade.

Financial Flexibility with RBI Dividend

• With the Reserve Bank of India (RBI) poised to provide a record-breaking dividend of Rs 2.11 trillion to the government, fiscal manoeuvrability is enhanced.
• This allows for a balanced approach in budgetary allocation, supporting both consumption-driven initiatives and elevated capital expenditure plans.

Conclusion

• The anticipated allocation of Rs 2.6 trillion or higher to the railways sector in the upcoming budget underscores the government’s proactive stance towards infrastructure development.
• Leveraging fiscal resources, including the significant RBI dividend, demonstrates a strategic alignment with long-term growth objectives.
• As India navigates economic challenges and pursues sustainable development goals, sustained investments in critical sectors like railways are pivotal for achieving inclusive and resilient growth.

What is GBS?

• The government’s support to the Central plan is called Gross Budgetary Support.
• The Central plan forms the annual expenditure of the government and is incurred keeping the objectives of 5-year plans in mind.
• Budgetary Support is earmarked for meeting the planned outlays of the Central government during the financial year.

What is EBR?

• Extra budgetary resources (EBRs) are those financial liabilities that are raised by Public Sector Undertakings for which repayment of entire principal and interest is done from Government budget. Such borrowings are made by state-owned firms to fund government schemes but are not part of the official budget calculations.

India to host council meeting of International Sugar Organisation in New Delhi

• India, as the Chair of the International Sugar Organisation (ISO), will host the global body’s annual sugar meet in New Delhi from June 25 to June 27.
• The main inauguration event is scheduled for June 25 and will be officiated by Food Minister Pralhad Joshi.
• Internal meetings of the ISO will follow on June 26-27.

Role of the International Sugar Organisation (ISO)

• The ISO serves as a crucial intergovernmental organization dedicated to enhancing the global sugar market. It represents:
• 87% of world sugar production
• 64% of world sugar consumption With a membership comprising approximately 88 nations, including India, the ISO facilitates cooperation and dialogue among diverse countries.

Functions and Objectives

The ISO administers the International Sugar Agreement (ISA), 1992, with key objectives:

• Promoting international cooperation in sugar-related matters
• Facilitating intergovernmental discussions to enhance the global sugar economy
• Collecting and disseminating comprehensive market information
• Encouraging the diversification of sugar use, particularly in non-traditional applications

CURRENT AFFAIRS : INTERNATIONAL NEWS

External Affairs Minister Jaishankar And Sri Lanka President Commission Maritime Rescue Coordination Centre

• External Affairs Minister (EAM) Jaishankar met Sri Lankan President Wickremesinghe and commissioned the Maritime Rescue Coordination Centre (MRCC).
• Purpose : To enhance maritime security and coordination in Sri Lanka, funded by a USD 6 million grant from India.
• This was Jaishankar’s first bilateral visit overseas after being re-appointed in the Cabinet.
• Wickremesinghe was among seven world leaders who attended the swearing-in ceremony of Prime Minister Narendra Modi on June 9, 2024.

Key Highlights :

• Housing Projects:Jaishankar and Wickremesinghe handed over 48 houses, 24 each in Colombo and Trincomalee, built under the Model Village Housing Project.
• They also handed over 106 houses in three up-country estates, built under Phase III of the Indian Housing Project, funded by India.
• Details of MRCC:The MRCC was commissioned with a $6 million grant from India.
• The MRCC includes a centre at Navy headquarters in Colombo and a sub-centre in Hambantota.
• There are unmanned installations at Galle, Arugambay, Batticaloa, Trincomalee, Kallarawa, Point Pedro, and Mollikulam.
• The sub-centre in Hambantota is notable as the port is managed by China.

About Sri Lanka :

• President : Ranil Wickremesinghe
• Prime Minister : Dinesh Gunawardena
• Capital : Sri Jayawardenepura Kotte (legislative), Colombo (executive and judicial)
• Currency : Sri Lankan rupee

Recent News :

• In June 2024, External affairs minister S Jaishankar visited the United Arab Emirates (UAE), one of India’s closest strategic partners in West Asia, to assess bilateral relations and chart out new areas for cooperation.

CURRENT AFFAIRS : STATE NEWS

Patna High Court Overturns Bihar Government’s Increase in Reservation for Backward Classes from 50% to 65%

• The Patna High Court set aside amendments passed by the Bihar legislature in 2023, which sought to increase reservation for Backward Classes (BC), Extremely Backward Classes (EBC), Scheduled Castes (SC), and Scheduled Tribes (ST) from 50% to 65% in educational institutions and government jobs.
• A Public Interest Litigation (PIL) challenging the increase in reservation was filed on November 27, 2023.
• After hearings, the court reserved its decision on March 11, 2024, and announced its decision on June 20, 2024, overturning the amendments.
• Following the caste-based survey report, the government of Chief Minister Nitish Kumar decided to increase the reservation for BC, EBC,SC and ST.
• The PIL plea has been filed by Gaurav Kumar and others.

What is meant by Public Interest Litigation (PIL)?

• Public Interest Litigation (PIL) refers to legal action initiated in a court of law to safeguard the broader interests of the public.
• It addresses issues impacting the public at large, such as environmental pollution, terrorism, road safety, and construction hazards.
• PIL does not have a specific definition under any statutory law but serves as a legal recourse for matters where the collective welfare of the public is affected.

Key Highlights :

• Government’s Justification: The State Government argued that the increased reservation was necessary due to inadequate representation of these classes and was not based on a proportionate basis.
• Constitutional Challenges: Arguments included violations of Article 14 and Article 15(6)(b) of the Indian Constitution, particularly regarding the cancellation of 10% reservation for Economically Weaker Sections (EWS) in the general category.
• The Bihar Assembly on November 9, 2023, unanimously passed a Bill to increase reservation for Backward Classes, Extremely Backward Classes, Scheduled Castes, and Scheduled Tribes from the existing 50% to 65%.
• Together with the 10% Economically Backward Class (EWS) quota, the Bill had pushed reservation in Bihar to 75%, well past the 50% ceiling set by the Supreme Court.
• Legislative Changes: According to the legislation, named the Bihar Reservation Amendment Bill, quota for Extremely Backward Classes (EBC) was raised from the existing 18% to 25%; for Backward Classes (BC) from 12% to 18%; for Scheduled Castes (SC) from 16% to 20%; and for Scheduled Tribes (ST), the quota has been doubled, from 1% to 2%.
• The existing 3% reservation for BC women has been scrapped.

About Bihar :

• Governor : Rajendra Arlekar
• Chief Minister : Nitish Kumar
• Capital : Patna
• Wildlife Sanctuaries : Gautam Budha Wildlife Sanctuary, Pant Wildlife Sanctuary, Kaimur Wildlife Sanctuary

Recent News :

• In June 2024, Prime Minister Shri Narendra Modi inaugurated the new campus of Nalanda University near Rajgir, Bihar.

CURRENT AFFAIRS: BUSINESS NEWS

BIS launches two new safety standards for EVs in India

• The Bureau of Indian Standards (BIS) has introduced new safety guidelines to enhance the safety and performance of electric vehicles (EVs) in India.
• These guidelines apply to a range of vehicles, including two-wheelers, four-wheelers, goods trucks, e-rickshaws, and e-karts.

Key Highlights of the New BIS Guidelines:

1. Categories Covered:
   • L Category: Two-wheelers.
   • M Category: Four-wheelers.
   • N Category: Goods trucks.
2. New Regulations:
   • IS 18590: 2024: Focuses on the essential components of electric cars, buses, and trucks, with a specific emphasis on the powertrain, which includes the motor and transmission systems.
   • IS 18606: 2024: Also targets critical components of EVs, underscoring the safety and performance of batteries to ensure they are robust and secure.
3. E-Rickshaws and E-Karts:
   • IS 18294: 2023: Sets specific safety standards for e-rickshaws and e-karts, addressing various aspects from construction to functionality. These standards aim to ensure the safety of both drivers and passengers.

Broader Context:

• Transition to Electric Mobility: These guidelines are part of India’s broader strategy to transition to electric mobility, reducing dependence on fossil fuels and lowering carbon emissions.
• Inclusive Standards: The inclusion of e-rickshaws and e-karts acknowledges their increasing popularity and ensures that safety standards keep pace with market developments.
• By implementing these guidelines, BIS aims to support the safe and sustainable growth of the electric vehicle market in India, ensuring that all categories of EVs meet high safety and performance standards.

Recommendations of the 53rd GST Council Meeting

• The 53rd GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Nirmala Sitharaman in New Delhi.
• The meeting was also attended by Union Minister of State for Finance Shri Pankaj Chaudhary, Chief Ministers of Goa and Meghalaya; Deputy Chief Ministers of Bihar, Haryana, Madhya Pradesh, and Odisha; besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States/ UTs.
• The GST Council inter alia made the following recommendations relating to changes in GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST.

Recommendations relating to GST rates on Goods

Changes in GST rates of goods

1. A uniform rate of 5% IGST will apply toimports of ‘Parts, components, testing equipment, tools and tool-kits of aircrafts, irrespective of their HS classification to provide a fillip to MRO activities subject to specified conditions.
2. All milk cans (of steel, iron and aluminium) irrespective of their use will attract 12% GST.
3. GST rate on ‘carton, boxes and cases of both corrugated and non-corrugated paper or paper-board’ (HS 4819 10; 4819 20) to be reduced from 18% to 12%.
4. All solar cookers whether single or dual energy source, will attract 12% GST.
5. To amend existing entry covering Poultry keeping Machinery attracting 12% GST to specifically incorporate “parts of Poultry keeping Machinery” and to regularise past practice on ‘as is where is’ basis in view of genuine interpretational issues.
6. To clarify that all types of sprinklers including fire water sprinklers will attract 12% GST and to regularise the past practice on ‘as is where is’ basis in view of genuine interpretational issues.
7. To extend IGST exemption on imports of specified items for defence forces for a further period of five years till 30th June, 2029.
8. To extend IGST exemption on imports of research equipment/buoys imported under the Research Moored Array for African-Asian-Australian Monsoon Analysis and Prediction (RAMA) programme subject to specified conditions.
9. To exempt Compensation Cess on the imports in SEZ by SEZ Unit/developers for authorised operations w.e.f. 01.07.2017.

Other Miscellaneous Changes

10. To exempt Compensation cess on the supply of aerated beverages and energy drinks to authorised customers by Unit Run Canteens under the Ministry of Defence.
11. To provide Adhoc IGST exemption on imports of technical documentation for AK-203 rifle kits importedfor  Indian Defence forces.

What is GST in India?

• GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017.
• In other words, Goods and Service Tax (GST) is levied on the supply of goods and services. Goods and Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. GST is a single domestic indirect tax law for the entire country.

Indian deep tech startups count surges in 2023, funding drops 77%: Nasscom

• In 2023, India experienced a remarkable surge in deep tech startups, solidifying its position as the third-largest hub globally for such ventures.
• Here are the key highlights and challenges outlined in the report by Nasscom and Zinnov:

Growth in Deeptech Startups

• New Ventures: India witnessed the establishment of 480 new deeptech startups in 2023, marking a significant increase compared to previous years.
• Total Ecosystem: The country now hosts over 3600 deeptech startups, reflecting a robust and expanding ecosystem in advanced technology sectors.

Challenges Faced by Deeptech Startups

• Funding Winter: Despite the growth in numbers, there’s a concerning trend of reduced funding. In 2023, Indian deep tech startups raised approximately $850 million, a steep decline of 77% from $3.7 billion raised in 2022.
• Top Challenges: Startups are grappling with challenges in scaling operations, attracting and retaining talent, and expanding globally. These factors hinder their ability to fully capitalize on growth opportunities.

Focus Areas and Technologies

• Artificial Intelligence (AI): AI emerged as the dominant technology driving new startups and attracting investor interest. 74% of deeptech startups established in 2023 were AI-driven, and 86% of the startups that raised funding in the same year focused on AI.
• Patent Filings: AI also led in patent filings within the deep tech sector, accounting for 41% of all filings. This highlights the innovative strides and intellectual property developments in AI technologies.

India Inc cut back on dividends in FY24 despite record profit

• Despite a significant surge in corporate profitability, listed firms in FY24 experienced a decline in dividend payouts.
• The total dividend payout decreased by 4.7% year-on-year (Y-o-Y), amounting to Rs 4.03 trillion, down from the previous year’s record high of Rs 4.23 trillion in FY23.

Robust Profit Growth

• In contrast to the reduction in dividend payouts, combined net profits of all companies in the Business Standard sample soared by 29.9% Y-o-Y, reaching an unprecedented Rs 14.75 trillion in the last financial year, up from Rs 11.36 trillion in FY23.
• This growth reflects a robust performance across various sectors despite broader economic challenges.

Strategic Considerations

• The decline in dividend payouts amidst heightened profitability suggests strategic adjustments by listed firms.
• Factors influencing these decisions may include prioritizing reinvestment for future growth, managing capital expenditures, and navigating economic uncertainties.

CURRENT AFFAIRS : APPOINTMENTS & RESIGNATIONS

National Testing Agency Director General Subodh Kumar Singh Removed, Pradeep Singh Kharola Assumes Additional Charge Of NTA’s DG

• Amid the NEET-UG, UGC NET, and CSIR UGC NET cancellation and postponement, the Ministry of Education (MoE) has appointed retired Indian Administrative Officer Pradeep Singh Kharolaas the new director general of the National Testing Agency (NTA) till the appointment of a regular incumbent.
• Subodh Kumar Singh, the previous National Testing Agency (NTA) DG, has been removed and placed on compulsory wait in the Department of Personnel and Training (DoPT) amid controversy over exam irregularities.
• The decision was taken by the Appointments Committee of the Cabinet.
• The Education Ministry has also set up a 7-member panel headed by former ISRO chief K Radhakrishnan to review the agency’s functioning and recommend exam reforms.
• The other constituent members include Dr. Randeep Guleria, Former Director, AIIMS Delhi, Prof. B J Rao, Vice Chancellor, Central University of Hyderabad, Prof. Ramamurthy K, Professor Emeritus, Department of Civil Engineering, IIT Madras, Pankaj Bansal, Co-Founder, People Strong and Board Member- Karmayogi Bharat, Prof. Aditya Mittal, Dean Student Affairs, IIT Delhi, Govind Jaiswal, Joint Secretary, Ministry of Education.

New Law to Curb Malpractices:

• The Centre has implemented a stringent law targeting malpractice and irregularities in competitive exams.
• Offenders could face a maximum jail term of 10 years and a fine of up to₹1 crore.

About Pradeep Singh Kharola :

• Pradeep Kharola, a 1985 batch IAS officer of the Karnataka cadre, was appointed the head of Air India in November 2017.
• In 2019, Kharola was appointed as the new civil aviation secretary.
• From 2022, he is serving as the chairman of the India Trade Promotion Organisation (ITPO).
• One of his most notable achievements include pulling out the loss-making Bangalore Metropolitan Transport Corporation (BMTC) into profit in 2000.
• Apart from expertise, he also received the coveted National Award for e-governance in 2012 and in 2013, he received the Prime Minister’s Outstanding Public Administration Award.

About National Testing Agency (NTA) :

• Headquarters : New Delhi, Delhi, India
• The National Testing Agency (NTA), established in November 2017 under the Indian Societies Registration Act, 1860, is an autonomous body tasked with conducting various entrance examinations for admissions to higher educational institutions.
• It is an autonomous body under the Ministry of Education of India.

Exams Conducted by NTA:

• NEET: National Eligibility cum Entrance Test for medical courses.
• JEE: Joint Entrance Examination for engineering courses.
• CTET: Central Teacher Eligibility Test.
• GATE: Graduate Aptitude Test in Engineering.
• GPAT: Graduate Pharmacy Aptitude Test.
• GMAT: Graduate Management Admission Test.
• CAT: Common Admission Test for management courses.
• UGC-NET: University Grants Commission National Eligibility Test for lectureship and JRF.
• CSIR-UGC NET: Council of Scientific and Industrial Research National Eligibility Test.

CURRENT AFFAIRS : DEFENCE NEWS

Mazagon Dockyard Limited in Advanced Negotiations with Defence Ministry for ₹35,000 Crore Kalvari Submarine Agreement      

• Talks on acquiring additional Kalvari-class (Scorpene) submarines for the Indian Navy have progressed, with state-owned Mazagaon Dockyard Limited (MDL) in advanced discussions for a potential ₹35,000-crore deal that will help boost India’s underwater strength.
• The new submarines -3 additional Kalvari-class which are under negotiation — will be larger than their predecessor and will be packed with modern electronics that will give them better strength and longer endurance.

Key Highlights :

• Technological Advances: Integration of advanced propulsion technologies allowing for extended range, demonstrated by the existing submarines reaching as far as Australia.
• Indigenous Content: At least 60% of the new submarines’ content will be indigenous, involving Indian sub-suppliers and the MSME sector, ensuring significant technology transfer and local job creation.
• Job Creation: The deal is expected to create approximately 5,000 jobs over the years.
• Local Ecosystem: A major part of the contract value will remain within India, benefiting the local economy and technological capabilities.
• Technology Transfer: High indigenous content and involvement of local suppliers will lead to significant technology transfer, aiding future indigenous design, development, and manufacturing of submarines.
• Current Projects:MDL is Currently constructing the Kalvari-class submarines under Project 75 with French assistance.
• The sixth and final submarine of the current batch is likely to be delivered by the end of this year
• Delivery Timeline: As per MDL’s proposal, the additional submarines can be delivered within six years.
• Navy’s Urgent Requirement:The Navy urgently needs conventional submarines as the existing fleet of Russian-origin Kilo class submarines are nearing the end of their service life.
• The Navy is also pursuing the construction of 6 conventional submarines under Project 75I.

About Indian Navy :

• Headquarters : New Delhi, Delhi
• Chief of Defence Staff : GeneralAnil Chauhan
• Chief of the Naval Staff : Admiral Dinesh K Tripathi

About Mazagon Dock Shipbuilders Limited (MDL) :

• Founded : 1934
• Headquarters : Mumbai, Maharashtra, India
• Chairman & MD : Sanjeev Singhal
• MDL is a public ector undertaking managed by the Ministry of Defence, with the Government of Indiaholding an 84.83% stake.
• It manufactures warships and submarines for the Indian Navy and offshore platforms and associated support vessels for offshore oil drilling.

CURRENT AFFAIRS : SCIENCE & TECHNOLOGY

Indian Space Research Organisation Successfully Completes 3rd and Final ‘Pushpak’ Reusable Launch Vehicle Landing Test  

• The Indian Space Research Organisation (ISRO) successfully conducted the third and final landing experiment of its Reusable Launch Vehicle (RLV) ‘Pushpak’ at the Aeronautical Test Range in Chitradurga, Karnataka.
• The RLV LEX-03 which stands for Reusable Launch Vehicle Landing Experiment 3, demonstrated the autonomous landing capability under more severe wind conditions.
• The Chinook helicopter released the Reusable Launch Vehicle Pushpak at an altitude of 4.5 kms from the runway.
• Following the success of the RLV LEX-01 and LEX-02 missions, RLV LEX-03 re-demonstrated the autonomous landing capability of the RLV under more challenging release conditions (cross range of 500 m against 150 m for LEX-02) and more severe wind conditions.

Key Highlights :

• Landing : From a release point 4.5 km away from the runway, Pushpak autonomously executed cross-range correction manoeuvres, approached the runway and performed a precise horizontal landing at the runway centreline.
• Landing Velocity : Due to this vehicle’s low lift-to-drag ratio aerodynamic configuration, the landing velocity exceeded 320 kilometre per hour (kmph), compared to 260 kmph for a commercial aircraft and 280 kmph for a typical fighter aircraft.
• After touchdown, the vehicle velocity was reduced to nearly 100 kmph using its brake parachute, after which the landing gear brakes were employed for deceleration and stop on the runway.
• Guidance Algorithm : Through this mission, the advanced guidance algorithm catering to longitudinal and lateral plane error corrections, which is essential for the future Orbital Re-entry Mission has been validated.
• Sensor Systems : The RLV-LEX uses multisensor fusion including sensors like Inertial sensor, Radar altimeter, Flush air data system, Pseudolite system and
• Reuse and Robustness : Notably, the RLV-LEX-03 mission reused the winged body and flight systems as such without any modification, from the LEX-02 mission, demonstrating the robustness of ISRO’s capability of design to reuse flight systems for multiple missions.
• Collaborative Effort:LeadCenter: Vikram Sarabhai Space Centre (VSSC)
• Collaborating ISRO Centers: Space Applications Centre (SAC), ISRO Telemetry, Tracking and Command Network (ISTRAC), Satish Dhawan Space Centre (SDSC-SHAR), Inertial Systems Unit (IISU)
• Supporting Organizations: Indian Air Force (IAF), Aeronautical Development Establishment (ADE), Aerial Delivery Research and Development Establishment (ADRDE), Regional Centre for Military Airworthiness (RCMA), National Aerospace Laboratories (NAL), Indian Institute of Technology Kanpur, Indian aerospace industrial partners, Indian Oil Corporation of India, and Airport Authority of India.

About ISRO :

• Established: 15 August 1969
• Headquarters: Bangalore, Karnataka, India
• Chairman: S. Somanath

CURRENT AFFAIRS: SPORTS NEWS

World Athletics Championships 2023: Neeraj Chopra becomes the first-ever Indian world champion to win gold

• India’s Neeraj Chopra made history again by winning the gold medal in the men’s javelin throw at the World Athletics Championships 2023 held in Budapest, Hungary.
• With an outstanding throw of 88.17 meters, the Olympic champion became the first Indian athlete to clinch a gold medal at the senior world championships.

Neeraj Chopra’s Historic Achievements:

• World Athletics Championships 2023: Gold with a throw of 88.17m.
• Tokyo 2020 Olympics: Gold, marking India’s first-ever Olympic gold in track and field.
• Diamond League 2022: Champion, first Indian to win this prestigious title.
• Junior World Championships 2016: Gold, setting a world junior record.
• Asian Athletics Championships 2017: Gold.
• Asian Games 2018: Gold.
• Commonwealth Games 2018: Gold.

Comprehensive Set of Titles:

Neeraj Chopra’s victory in Budapest completes an impressive set of major titles in javelin throw, showcasing his dominance in the sport. His achievements include:

• Olympic Gold: Tokyo 2020.
• World Championship Gold: Budapest 2023.
• Diamond League Title: 2022.
• Asian Athletics Championships Gold: 2017.
• Asian Games Gold: 2018.
• Commonwealth Games Gold: 2018.

Verstappen wins third Spanish GP in a row

• Max Verstappen notched his third consecutive victory at the Spanish Grand Prix, kicking off the triple-header race weekends with a dominant performance in Barcelona.

Lindblad Makes History as Youngest-Ever F3 Feature Race Winner

• Arvid Lindblad achieved a remarkable milestone by becoming the youngest-ever winner of an F3 Feature race, highlighting his burgeoning talent in motorsport.

Bell’s Dominance in New Hampshire: Xfinity and Cup Series Success

• Christopher Bell secured a clean sweep at New Hampshire Motor Speedway, triumphing in both the Xfinity and Cup series races to mark a standout weekend in his racing career.

Hat-Trick at Circuit de Barcelona-Catalonia

This victory marks Verstappen’s:

• 7th win in 10 races this season
• 3rd consecutive triumph at the Spanish track

Other Notable Performances at the Spanish Grand Prix

• Oscar Piastri (McLaren): 7th Place Oscar Piastri showcased a solid performance, securing 7th place in the Spanish Grand Prix, demonstrating his skill and consistency on the track.
• Sergio Pérez (Red Bull): Overcomes Grid Penalty to Finish 8th Sergio Pérez started 11th due to a grid penalty but made an impressive climb to finish 8th, showcasing his racecraft and determination in challenging circumstances.
• Pierre Gasly (Alpine): Claims 9th Place Pierre Gasly drove a competitive race, securing a respectable 9th place, highlighting his ability to capitalize on opportunities during the Spanish Grand Prix.
• Esteban Ocon (Alpine): Rounds Out Top 10 with 10th Place Finish Esteban Ocon completed the top 10 with a solid performance, earning valuable points for Alpine and demonstrating his capability in competitive racing conditions.

Daily CA One-Liner: June 25

• The government is considering a proposal to set up a separate bank for direct lending to the micro, small and medium enterprises (MSMEs) to deepen credit flows to the under-penetrated sector and thereby boost economic activity and job creation.
• The Goods and Services Tax (GST) Council has clarified that reinsurance and coinsurance are not considered as the supply of a service and hence are not liable for GST.
• As part of the network expansion plan, the State Bank of India (SBI) is planning to open 400 branches across the country in the current financial year.
• The Insolvency and Bankruptcy Board of India (IBBI) has proposed amendments to the Insolvency Resolution Process for Corporate Process regulations, to enhance efficiency and reduce costs, and sought stakeholder inputs by July 10, 2024.
• External Affairs Minister (EAM) Jaishankar met Sri Lankan President Wickremesinghe and commissioned the Maritime Rescue Coordination Centre (MRCC).
• The Patna High Court set aside amendments passed by the Bihar legislature in 2023, which sought to increase reservation for Backward Classes (BC), Extremely Backward Classes (EBC), Scheduled Castes (SC), and Scheduled Tribes (ST) from 50% to 65% in educational institutions and government jobs.
• Amid the NEET-UG, UGC NET, and CSIR UGC NET cancellation and postponement, the Ministry of Education (MoE) has appointed retired Indian Administrative Officer Pradeep Singh Kharolaas the new director general of the National Testing Agency (NTA) till the appointment of a regular incumbent.
• Talks on acquiring additional Kalvari-class (Scorpene) submarines for the Indian Navy have progressed, with state-owned Mazagaon Dockyard Limited (MDL) in advanced discussions for a potential ₹35,000-crore deal that will help boost India’s underwater strength.
• The Indian Space Research Organisation (ISRO) successfully conducted the third and final landing experiment of its Reusable Launch Vehicle (RLV) ‘Pushpak’ at the Aeronautical Test Range in Chitradurga, Karnataka.
• The Ministry of New & Renewable Energy (MNRE) is spearheading the National Green Hydrogen Mission (NGHM), aiming to achieve a production capacity of 5 million tonnes per annum of Green Hydrogen by 2030
• Union Home Minister Amit Shah inaugurated the ‘Fast Track Immigration-Trusted Traveller Programme (FTI-TTP)’ at Delhi airport’s Terminal 3, aimed at enhancing the travel experience for Indian nationals and OCI cardholders.
• Finance Minister Nirmala Sitharaman recently addressed concerns regarding GST (Goods and Services Tax) assessments and issued updates following the GST Council meeting
• Union Tribal Affairs Minister Jual Oram has announced that his ministry will scrutinize the forest clearance documentation related to the ₹72,000-crore infrastructure project on Great Nicobar Island.
• A high-level government committee has expressed concerns regarding delays in payments to companies participating in the Production Linked Incentive (PLI) schemes
• According to an analysis of the Annual Survey of Unincorporated Sector Enterprises (ASUSE) by the National Statistical Office (NSO), unincorporated enterprises in the manufacturing sector experienced significant declines between July 2015-June 2016 and October 2022-September 2023
• The upcoming Union budget for FY25 is anticipated to include a proposal to issue sovereign green bonds amounting to approximately ₹25,000 crore to ₹30,000 crore.
• According to a senior official in the Ministry of Railways, the gross budgetary support (GBS) is likely to either maintain the same level as announced in the Interim Budget or potentially increase to Rs 2.6 trillion.
• India, as the Chair of the International Sugar Organisation (ISO), will host the global body’s annual sugar meet in New Delhi from June 25 to June 27.
• The Bureau of Indian Standards (BIS) has introduced new safety guidelines to enhance the safety and performance of electric vehicles (EVs) in India
• The 53rd GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Nirmala Sitharaman in New Delhi.
• In 2023, India experienced a remarkable surge in deep tech startups, solidifying its position as the third-largest hub globally for such ventures
• Despite a significant surge in corporate profitability, listed firms in FY24 experienced a decline in dividend payouts
• India’s Neeraj Chopra made history again by winning the gold medal in the men’s javelin throw at the World Athletics Championships 2023 held in Budapest, Hungary
• Max Verstappen notched his third consecutive victory at the Spanish Grand Prix, kicking off the triple-header race weekends with a dominant performance in Barcelona.