UPSC PIB Summary Analysis Jun06

Thirty Operational Flights of PSLV

• The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the Polar Satellite Launch Vehicle (PSLV) Continuation Programme (Phase 6) and funding of thirty PSLV operational flights under the Programme.
• The total fund requirement is Rs. 6131.00 Crores and includes the cost of thirty PSLV vehicles, essential facility augmentation, Programme Management and Launch Campaign.

Major Impact:

• The operationalisation of PSLV has made the country self-reliant in the launching capability of satellites for earth observation, disaster management, navigation and space sciences.
• The PSLV Continuation Programme – Phase 6 will meet the demand for the launch of satellites at a frequency up to eight launches per year, with maximal participation by the Indian industry.
• The Programme will also meet the launch requirement of satellites for Earth observation, Navigation and Space Sciences. This will also ensure the continuity of production in Indian industry.
• PSLV Continuation Programme was initially sanctioned in 2008, and four phases have been completed and the fifth phase is expected to be completed by Q2 of 2019-20. The Phase 6 approval will cater to the launch of satellite missions during the period Q3 of 2019-20 to Q1 of 2023-24.

Background:

• PSLV has emerged as a versatile launch vehicle to carry out Sun-Synchronous Polar Orbit (SSPO), Geo-synchronous Transfer Orbit (GTO) and low inclination Low Earth Orbit (LEO) missions. With the recent successful launch of PSLV-C41 on 12th April, 2018, PSLV has completed three developmental and forty three operational flights and the last forty one flights have been successful. PSLV has established itself as a workhorse vehicle for national satellites with a production capacity that would enable responding fast to commercial launch opportunities also.

Cabinet approves the joint issue of postage stamp between India and Russia

• The Union Cabinet chaired by Prime Minister Shri Narendra Modi was apprised of the agreement signed in connection with release of Joint Stamps between Department of Posts, India and Russia Post (Joint-Stock Company “MARKA” of Russian Federation) to establish postal cooperation and strive towards mutually beneficial operational excellence in the field of issuance of stamps.
• Bilateral relations between India and Russia are marked by broad understanding on issues of mutual interest. India and Russia enjoy enhanced levels of cooperation in almost all areas of the bilateral relationship.

Promulgation of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018.

• The President today gave assent to promulgate the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018.
• The Ordinance provides significant relief to home buyers by recognizing their status as financial creditors.  This would give them due representation in the Committee of Creditors and make them an integral part of the decision making process.  It will also enable home buyers to invoke Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016 against errant developers.   
• Another major beneficiary would be Micro, Small and Medium Sector Enterprises (MSME), which form the backbone of the Indian economy as the biggest employer, next only to the agriculture sector.  
• Recognizing the importance of MSME Sector in terms of employment generation and economic growth, the Ordinance empowers the Government to provide them with a special dispensation under the Code.  
• The immediate benefit it provides is that, it does not disqualify the promoter to bid for his enterprise undergoing Corporate Insolvency Resolution Process (CIRP) provided he is not a willful defaulter and does not attract other disqualifications not related to default.
• In order to protect the sanctity of the CIRP, the Ordinance lays down a strict procedure if an applicant wants to withdraw a case after its admission under IBC 2016.  Henceforth, such withdrawal would be permissible only with the approval of the Committee of Creditors with 90 percent of the voting share.  Furthermore, such withdrawal will only be permissible before publication of notice inviting Expressions of Interest (EoI).  In other words, there can be no withdrawal once the commercial process of EoIs and bids commences.
• With a view to encouraging resolution as opposed to liquidation, the voting threshold has been brought down to 66 percent from 75 percent for all major decisions such as approval of resolution plan, extension of CIRP period, etc.  Further, in order to facilitate the corporate debtor to continue as a going concern during the CIRP, the voting threshold for routine decisions has been reduced to 51%.
• Taking into account the wide range of disqualifications contained in Section 29(A) of the Code, the Ordinance provides that the Resolution Applicant shall submit an affidavit certifying its eligibility to bid.  This places the primary onus on the resolution applicant to certify its eligibility. 
• The Ordinance provides for a minimum one-year grace period for the successful resolution applicant to fulfill various statutory obligations required under different laws.  This would go a long way in enabling the new management to successfully implement the resolution plan.
• The other changes brought about by the Ordinance include non-applicability of moratorium period to enforcement of guarantee; introducing the requirement of special resolution for corporate debtors to themselves trigger insolvency resolution under the Code; liberalizing terms and conditions of interim finance to facilitate financing of corporate debtor during CIRP period; and giving the IBBI a specific development role along with powers to levy fee in respect of services rendered.
• These changes are expected to further strengthen the Insolvency Resolution Framework in the country and produce better outcomes in terms of resolution as opposed to liquidation, time taken, cost incurred and recovery rate.