GS Analyst
Daily Current Affairs

Justice D.Y Chandrachud was sworn in as the 50th Chief Justice of India (CJI) by President Droupadi Murmu at a brief ceremony at the Rashtrapati Bhavan in New Delhi.

About D.Y Chandrachud:

• Dhananjaya Yeshwant Chandrachud(born 11 November 1959) is an Indian Judge who is now the 50th Chief Justice of India.
• He will serve as Chief Justice till November 10, 2024.
• He was one of the Seniormost Judges of the Apex Court
• He is a former ex-officio executive chairman of the National Legal Services Authority.
• In addition, he is a former Chief Justice of the Allahabad High Court and a former judge of the Bombay High Court.
• His father, Yeshwant Vishnu Chandrachud, is the longest-serving Chief Justice of India (from 1978-85) in history.

His Contributions:

• He wrote the lead judgment for a nine-judge Constitution Bench in the Justice S. Puttaswamy vs Union of India case, in which it was unanimously held that the right to privacy was a Fundamental Right.
• Recently, a Bench headed by him expanded the scope of the Medical Termination of Pregnancy Act to include unmarried women for abortion between 20 and 24 weeks of pregnancy.
• He also delivered path-breaking judgments on decriminalizing same-sex relations, after it partially struck down Section 377 of the Indian Penal Code.
• He has been part of Benches that ruled on the validity of the Aadhaar scheme and the Sabarimala issue.
• He also paved the way for the permanent commissioning of women officers in the armed forces.

Recently, the Union Cabinet has approved the new guidelines for the up-linking and downlinking of television channels in India.

What does Uplinking-downlinking mean?

• In satellite telecommunication, a downlink is a link from a satellite down to one or more ground stations or receivers, and an uplink is a link from a ground station up to a satellite.
• Some companies sell uplink and downlink services to television stations, corporations, and to other telecommunication carriers.
• A company can specialize in providing uplinks, downlinks, or both.

Highlights of the Order:

• It has been directed to all the Telecast stations holding permission would have to broadcast content on issues of national importance and social relevance for at least 30 minutes every day.
• Objective:
  • The provision has been introduced as ‘airwaves/frequencies’ are public property and need to be used in the best interest of society.
• The eight listed themes include;
• Education and spread of literacy,
  • Agriculture and rural development,
  • Health and family welfare,
  • Science and technology,
  • The welfare of women,
  • The welfare of the weaker sections of society,
  • Protection of the environment and of cultural heritage, and
  • National integration.
• Exceptions:
  • For the foreign channels,
  • The channels include those related to sports, where it would not be feasible to broadcast such content.
• Decision-making Authority: As and when required, the Centre would issue general advisories to the channels in this regard.
• Significance of the step: The new guidelines will replace those operational since 2011, and would ease the issue of permission to the companies and limited liability partnership firms (which have been allowed for the first time) registered in India for uplinking-downlinking of TV channels and associated activities.

Benefits listed:

• For Live Telecast events: The requirement to seek permission for the live telecast of events will not be required now and only prior registration of events would be necessary for live telecast.
• Ease in getting a nod: Prior permission would not be needed for a change of language or conversion of the mode of transmission, from Standard Definition to High Definition or vice versa; only prior intimation would suffice.
• Make India a Teleport Hub:  As it proposes for the grant of permission, LLPs/companies would be allowed to uplink foreign channels from Indian teleports which would create employment opportunities and make India a teleport hub for other countries.
• Broadened the Scope: The guidelines have broadened the possibility of allowing the transfer of TV channels/teleport to a company/LLP, as permissible under the Companies Act or the Limited Liability Act.

Recently, the rural development schemes like Pradhan Mantri Awas Gramin, Gram Sadak Yojana, etc. have been assessed based on departmental works, where Madhya Pradesh being on Top for implementing these Schemes.

• The review of departmental works was done by Additional Chief Secretary Panchayat and Rural Development and Commissioner Development Shri Malay Srivastava.
• Madhya Pradesh is leading in the country in the implementation of Pradhan Mantri Awas Gramin, Gram Sadak Yojana, State Rural Livelihood Mission, etc.
• The departmental officers were found to keep working with full dedication, hard work, and devotion.

The Pradhan Mantri Awas Gramin Yojana:

• Ministry Involved: Ministry of Rural development.
• Aim:
  • To provide a pucca house with basic amenities to all rural families, who are homeless or living in kutcha or dilapidated houses by the end of March 2022
  • To help rural people Below the Poverty Line (BPL) in the construction of dwelling units and the upgradation of existing unserviceable kutcha houses by providing assistance in the form of a full grant.
• Beneficiaries: People belonging to SCs/STs, freed bonded laborers and non-SC/ST categories, widows or next-of-kin of defense personnel killed in action, ex-servicemen and retired members of the paramilitary forces, disabled persons and
• Selection of Beneficiaries: Through a three-stage validation - Socio-Economic Caste Census 2011, Gram Sabha, and geo-tagging.
• Cost Sharing: The cost of unit assistance is shared between Central and State Governments in the ratio of 60:40 in plain areas and 90:10 for North Eastern and hilly states.
• Features:
  • The unit assistance has been increased from Rs. 70,000 to Rs. 1.20 lakh in plain and from Rs. 75,000 to Rs. 1.30 lakh in hilly states.
  • The assistance for the construction of toilets shall be leveraged through convergence with Swachh Bharat Mission-Gramin (SBM-G), MGNREGS, or any other dedicated source of funding.

Gram Sadak Yojana:

• Launched on: 25th December 2000.
• Objective: To provide connectivity, by way of an all-weather road to unconnected habitations.
• Eligibility: Unconnected habitations of designated population size (500+ in plain areas and 250+ in North-Eastern States, Himalayan States, Deserts, and Tribal Areas as per the 2001 census) in the core network for uplifting the socio-economic condition of the rural population.
• Construction of Rural Roads: The Rural Roads constructed under the PMGSY will be in accordance with the provision of the Indian Roads Congress (IRC).
  • IRC is the Apex Body of Highway Engineers in the country.
  • The IRC was set up in 1934.
• PMGSY - Phase I
  • PMGSY - Phase I was launched in December 2000 as a 100 % centrally sponsored scheme.
  • Under the scheme, 1, 35,436 habitations were targeted for providing road connectivity and 3.68 lakh km. for the upgradation of existing rural roads in order to ensure full farm-to-market connectivity.
• PMGSY - Phase II
  • The Government of India subsequently launched PMGSY-II in 2013 for the upgradation of 50,000 Kms of the existing rural road network to improve its overall efficiency.
  • While the ongoing PMGSY - I continued, under PMGSY phase II, the roads already built for village connectivity were to be upgraded to enhance rural infrastructure.
  • The cost was shared between the center and the states/UTs.
• PMGSY - Phase III
  • Phase III was approved by the Cabinet in July 2019.
  • It gives priority to facilities like Gramin Agricultural Markets (GrAMs), Higher Secondary Schools, and Hospitals.

a statement, the European Union’s financial markets regulator European Securities and Markets Authority (ESMA) said it will withdraw recognition of Indian clearing bodies or central counterparties (CCPs).

What are CCPs?

• A central counterparty clearing house (CCP) is an entity that helps facilitate trading in various European derivatives and equities markets.
• Typically operated by the major banks in each country, CCPs strive to introduce efficiency and stability into various financial markets.
• It reduces counterparty, operational, settlement, market, legal, and default risk for traders.
• Function: Central counterparty clearing houses (CCPs) perform two primary functions;
  • As the intermediary in a transaction: clearing and settlement.
  • As counterparties to the buyers and the sellers, CCPs guarantee the terms of trade—even if one party defaults on the agreement.
  • CCPs bear the lion's share of the buyers' and sellers' credit risk when clearing and settling market transactions.
• A CCP is authorized by the RBI to operate in India under the Payment and Settlement Systems Act,
• Significance: CCPS offers fixed income to the investors and compulsorily converts into Equity Shares of the issuing company after a predetermined period. The terms of conversion are also pre-decided at the time of issue.
• The CCP replaces the trade at the current market price.

The decision for de-recognition by ESMA:

• ESMA has decided to withdraw recognition of six Indian CCPs which includes;
  • Clearing Corporation of India (CCIL)
  • Indian Clearing Corporation Ltd (ICCL)
  • NSE Clearing Ltd (NSCCL)
  • Multi Commodity Exchange Clearing (MCXCCL)
  • India International Clearing Corporation (IFSC) Ltd (IICC)
  • NSE IFSC Clearing Corporation Ltd (NICCL)
• As per the European Market Infrastructure Regulations (EMIR), a CCP in a third country can provide clearing services to European banks only if it is recognized by the ESMA.

What’s the reason for derecognition?

• The decision to derecognize Indian CCPs came due to ‘no cooperation arrangements’ between the ESMA and Indian regulators i.e., The Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the International Financial Services Centres Authority (IFSCA).
• The ESMA wants to supervise these CCPs, which the Indian regulators are not in favor of as they feel that these entities have robust risk management and there is no need for a foreign regulator to inspect them.

How will the derecognition impact European banks and India?

• Affect clearing and settlement activities: Some of the major European banks dealing in the domestic forex, forward, swap and equities, and commodities markets including Societe Generale, Deutsche Bank, and BNP Paribas will impact lenders as they will not be able to provide clearing and settlement facilities to their clients.
• Reduce the Portfolio capital generation in India: They will also have to set aside additional capital to trade in the domestic market, reports suggest. Of the total foreign portfolio investors (FPI) registered in India, close to 20 percent are from Europe.

The Finance Ministry has finalized the framework to issue Sovereign Green Bonds (SGB).

• The plan to issue sovereign green bonds was announced in the 2022/2023 Budget as a part of overall market borrowing with the intention to use the funds to build green infrastructure.

Where the fund would be utilized?

• The bonds will focus on funding solar power projects, followed by wind and small hydro projects.
• The proceeds from green bonds will not be used to fund hydropower plants larger than 25 MW, nuclear projects, and any biomass-based power generation with biomass originating from protected areas.
• The government intends to mobilize Rs 16,000 crore from the issuance of green bonds during the second half of the current financial year.
• The government is planning a total borrowing of Rs 5.92 lakh crore during the October-March period of the current fiscal.
• The announcement is in sync with India’s commitment to achieving net-zero carbon emissions by 2070, made in COP26.

Situation so far:

• Corporations have been issuing green bonds in India for a few years in a growing market, but the country’s global share stood at just 1% in the first half of 2022.
• The sovereign push could lead the way toward more climate investment.
• A clearer regulatory intervention will be crucial as a next step in the direction.

Green Bond Framework:

• This Green Bond Framework (Framework) sets forth the obligations of the Government of India as a Green Bond issuer.
• The Framework applies to all sovereign Green Bonds issued by the Government of India.
• Payments of principal and interest on the issuances under this Framework are not conditional on the performance of the eligible projects.

• Investors in bonds issued under this Framework do not bear any project-related risks.
• Ministry of Finance reserves the right to modify this Framework according to international best practices; India’s international commitments and environmental priorities.
• The framework is designed to comply with four components and key recommendations of the International Capital Market Association (ICMA) Green Bond Principles (2021).

Significance of Sovereign Guarantee to Green Bonds

• Sovereign green issuance sends a powerful signal of intent around climate action and sustainable development to governments and regulators.
• It will catalyze domestic market development and provides impetus to institutional investors.
• It will provide benchmark pricing, liquidity, and a demonstration effect for local issuers, helping to support the growth of a local market.
• With the IEA’s World Energy Outlook 2021, estimating that 70% of the additional USD 4 trillion spending to reach net zero is required in emerging/developing economies, sovereign issuance can help kickstart these large inflows of capital.

Concerns:

• Rate Interest paid on SGB: It is believed an SGB will have a lower yield, in which case, there is no reason for banks holding G-secs in excess of their statutory liquidity ratio (SLR) mandate to opt for a lower-yield bond.
• Ideally, the interest rate should be higher, as green projects tend to be more expensive.
• Tax Concessions: The government may have to offer some tax concessions. In its absence, there is a possibility that the banks may like to skip the auctions.
• Pricing of the bond: The pricing of the bond would be the most vital element of the exercise that must be worked out. As RBI has been trying to get retail investors into the G-sec market by giving tax benefits.
• It may be counterproductive as it will make even lower-yield bonds attractive as compared to SGB.
• Therefore, the pricing of the bond would be the most vital element of the exercise that must be worked out.