06 Aug 2020: UPSC Exam Comprehensive News Analysis

6 Aug 2020 CNA:- Download PDF Here

TABLE OF CONTENTS

A. GS 1 Related
SOCIAL ISSUES
1. Brus reject resettlement site offer
B. GS 2 Related
POLITY AND GOVERNANCE
1. EWS quota challenge referred to Constitution Bench
2. Centre formulating R&D policy to bolster drug discovery
C. GS 3 Related
ENVIRONMENT AND ECOLOGY
1. Pokkali rice seedlings travel from Kerala to the Sunderbans
2. Environment Ministry dithered on decision to close LG plant
ECONOMY
1. ‘M.P. should not get GI tag for basmati rice’
D. GS 4 Related
E. Editorials
ECONOMY
1. How to pay for the stimulus
INTERNAL SECURITY
1. Taking nuclear vulnerabilities seriously
F. Prelims Facts
1. Qualified Institutional Placement (QIP)
G. Tidbits
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions

2. Centre formulating R&D policy to bolster drug discovery

Context:

The Centre is formulating a new Research & Development (R&D) policy.

Aim:

The aim of the policy is to boost drug discovery and the manufacture of medical devices in the country.

Details:

  • The government has proposed to set up three major manufacturing parks.
    • It will have an investment of ₹1,000 crore each.
    • It is aimed at helping drive import substitution of basic raw materials, active pharmaceutical ingredients (API) and the making of medical devices.
  • Numerous production-linked incentives are also on the anvil.
  • There is a renewed focus on bringing together research institutions, academia and the industry to identify new chemicals, update processes and discover new drug delivery systems.

Way forward:

  • Under the current system, approval processes are obsolete. There is a dire need to strengthen institutions.
  • Scientists’ role in new discoveries must be recognised to help them commercialise the projects.

Read more about this topic covered in 28th July 2020 Comprehensive News Analysis.

2. Environment Ministry dithered on decision to close LG plant

Context:

The Union Ministry of Environment, Forests and Climate Change (MoEFCC) decided against closing down operations of the LG Polymers plant in Vishakapatnam, Andhra Pradesh.

Background:

  • A gas leak in Visakhapatnam in Andhra Pradesh had claimed at least 11 lives and affected thousands of residents in five villages. The source of the leak was a styrene plant owned by South Korean electronics giant LG.

This has been covered in 8th May 2020 Comprehensive News Analysis.

  • The high-power committee (HPC) formed by the government to investigate the styrene vapour leak at LG Polymers in Visakhapatnam had submitted its 4000-page report to the Chief Minister.

This has been covered in 7th July 2020 Comprehensive News Analysis.

Category: ECONOMY

1. ‘M.P. should not get GI tag for basmati rice’

Context:

  • Madhya Pradesh has sought inclusion of its 13 districts for GI tagging for basmati.
  • In response, the Punjab Chief Minister has written to the Prime Minister seeking his personal intervention against allowing this, quoting the larger interest of Punjab and other states which are already basmati GI tagged.

Which states have GI Tag for Basmati Rice?

Punjab, Haryana, Himachal Pradesh, Uttarakhand, Delhi, Western Uttar Pradesh and select districts of Jammu and Kashmir have GI tagging for basmati rice.

What are Punjab’s concerns?

  • According to Punjab CM, India exports basmati to the tune of ₹33,000 crore every year and any dilution in registration could give advantage to Pakistan in the international market in terms of basmati characteristics, quality parameters.
    • Pakistan also produces basmati as per GI tagging.
  • The CM has pointed out that GI tag for basmati has been given on the basis of the traditionally grown areas of basmati due to special aroma, quality and taste of the grain, which is indigenous to the region below the foothills of the Himalayas in the Indo-Gangetic Plains and the basmati of this area has distinct recognition across the world.
  • It has been asserted that Madhya Pradesh does not fall under the specialised zone for basmati cultivation.

Geographical Indication:

  • As per the Geographical Indications of Goods (Registration and Protection) Act, 1999, a geographical indication tag can be issued for agricultural goods that are originating in the territory of a country, or a region or locality in that territory, where a given quality, reputation or other characteristics of such goods is essentially attributable to its geographical origin.

Read more about Geographical Indication Tag and its Significance.

G. Tidbits

Nothing here for today!!!

H. UPSC Prelims Practice Questions

Q1. Consider the following statements with respect to Qualified Institutional 
Placements (QIP):
  1. It is a tool for raising capital with limited regulatory compliance.
  2. In a QIP, only equity shares can be issued.
  3. Only qualified institutional buyers are allowed to participate in a QIP issuance.

Which of the given statement/s is/are correct?

  1. 1 only
  2. 1 and 2 only
  3. 1 and 3 only
  4. 1, 2 and 3
CHECK ANSWERS:-

Answer: c

Explanation:

  • Qualified institutional placements (QIPS) are a way to issue shares to the public without going through standard regulatory compliance.
  • It follows a looser set of regulations; however, the allottees are highly regulated.
  • Qualified institutional buyers (QIBs) are the only entities allowed to purchase QIPs.
  • QIBs include mutual funds, domestic financial institutions such as banks and insurance companies, venture capital funds, foreign institutional investors, and others.
  • In a QIP, a listed company can issue equity shares, fully and partly convertible debentures, or any security (other than warrants) that is convertible to equity shares.
Q2. Consider the following statements with respect toPokkali rice”:
  1. It is a variety of rice known for its saltwater tolerance.
  2. It has got a Geographical Indication Tag.
  3. It is extensively cultivated in Tamil Nadu.

Which of the given statement is/are correct?

  1. 1 only
  2. 1 and 2 only
  3. 1, 2 and 3
  4. 2 only
CHECK ANSWERS:-

Answer: b

Explanation:

  • The pokkali variety is known for its saltwater tolerance.
  • It is endemic to central Kerala.
  • It is grown in coastal Alappuzha, Ernakulam and Thrissur districts.
  • It has been granted the Geographical Indication (GI) tag.
  • Pokkali is an ancient farming practice. One season of rice farming is alternated with another season of prawn culture.
    • When the salinity is high, prawn farming takes over.
Q3. Which of these states have Geographical Indication Tag for Basmati Rice?
  1. Punjab
  2. Haryana
  3. Uttarakhand
  4. Madhya Pradesh

Choose the correct option:

  1. 2 and 3 only
  2. 1, 2 and 3 only
  3. 3 and 4 only
  4. 2, 3 and 4 only
CHECK ANSWERS:-

Answer: b

Explanation:

In May 2010, Geographical Indication status was given to basmati grown only in Punjab, Haryana, Delhi, Himachal Pradesh, Uttarakhand and parts of western Uttar Pradesh and a few districts of the Union Territory of Jammu & Kashmir.

Q4. Consider the following statements with respect to River Sarayu:
  1. The river originates from Lake Mansarovar in the Himalayas and is also known as the Ghaghra.
  2. Sarayu flows through Uttarakhand and Uttar Pradesh.
  3. Ayodhya is situated on the banks of this river.

Which of the given statement/s is/are incorrect?

  1. 2 only
  2. 3 only
  3. 1 and 2 only
  4. None of the above
CHECK ANSWERS:-

Answer: d

Explanation:

All the statements are correct.

  • The Sarayu originates from Lake Mansarovar in the Himalayas and is also known as the Ghaghra and the Manas Nandini. It merges with the Ganga in Bihar’s Saran district.
  • Sarayu flows through Uttarakhand and Uttar Pradesh.
  • Ayodhya is situated on the banks of this river.

I. UPSC Mains Practice Questions

  1. Given the calls for increased public spending to revive the Indian economy, analyze the options available to finance such a public spending programme. (15 marks, 250 words)(GS paper 3/Economy)
  2. Possession of nuclear weapons not only provides credible deterrence capability against the use of nuclear weapons, but also prevents war and promotes stability. Critically examine. (10 marks, 150 words)(GS paper 3/Internal Security)

Read the previous CNA here.

6 Aug 2020 CNA:- Download PDF Here

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