Insolvency and Bankruptcy Code.
Insolvency and Bankruptcy Code, 2016 was enacted for
reorganization and insolvency resolution of corporate persons, partnership
firms and individuals in a time bound manner for maximization of the value of
assets.
The Ecosystem of
IBC is based on
·
Adjudicating
authority (AA) - would be the National Company Law Tribunal (NCLT) for
corporate insolvency.
·
It will
entertain or dispose of any insolvency application, approve/ reject resolution
plans, decide in respect of claims or matters of law/ facts thereof.
·
Debt Recovery
Tribunal (DRT) has jurisdiction over individuals and partnership firms other
than Limited Liability Partnerships.
·
The Insolvency
and Bankruptcy Board of India (IBBI) - apex body for promoting transparency
& governance in the administration of the IBC.
·
It will be
involved in setting up the infrastructure and accrediting IPs (Insolvency
Professionals (IPs) & IUs (Information Utilities).
Waterfall
Mechanism under IBC
Section 53 of IBC deals with the waterfall
mechanism, which gives priority to secured financial creditors over unsecured
financial creditors.
The mechanism says that if a company is being
liquidated, these secured financial creditors must be first paid the full
extent of their admitted claim, before any sale proceedings are distributed to
any other unsecured creditor.
The top most priority, however, is given to costs
related to the liquidation process and dues of workmen of the corporate debtor.
The dues of the workmen include all their salaries,
provident, pension, retirement and gratuity fund, as well as any other funds
maintained for the welfare of the workmen.
Types of
creditors
Secured creditor is generally a bank or other
asset-based lender that holds a fixed or floating charge over a business asset
or assets.
When a business becomes insolvent, sale of the
specific asset over which security is held provides repayment for this category
of creditor.
Unsecured creditor is an individual or institution
that lends money without obtaining specified assets as collateral.
This poses a higher risk to the creditor because it
will have nothing to fall back if the borrower default on the loan.
Atal
Innovation Mission (AIM) is under NITI Aayog.
It is mandated to create an umbrella structure to
oversee innovation ecosystem of the country and revolutionizing the innovation
eco-system.
It shall have
two core functions –
·
Entrepreneurship
promotion through Self-Employment and Talent Utilization (SETU), wherein
innovators would be supported and mentored to become successful entrepreneurs.
·
Innovation promotion - to provide a platform where innovative ideas are
generated.
Recently Coal India Limited (CIL) has agreed to
partner with AIM to support proactively the flagship mission’s innovation and
entrepreneurship initiatives across the country.
AIM has various innovation programs and
entrepreneurial ecosystem building initiatives such as
1.
Atal Tinkering
Labs (ATL) at a school level,
2.
Atal Incubation
Centres (AIC) at institutional levels,
3.
Atal Community
Innovation Centres (ACIC) for Tier-2, Tier3 cities and rural India,
4.
Atal New India
Challenges (ANIC) at industry level
5.
Applied Research
and Innovation (ARISE) for stimulating innovations in the MSME industry.
Asian
Infrastructure Investment Bank
The Asian Infrastructure Investment Bank (AIIB) is a
multilateral development bank with a mission to improve social and economic
outcomes in Asia.
·
Its HQ is in
Beijing, China.
·
It is
established by a multrilateral treaty - AIIB Articles of Agreement.
·
India joined
AIIB in 2016 as a regional member of the Bank.
·
Further, 14 of
the G-20 nations are AIIB members including France, Germany, Italy and the
United Kingdom.
·
China is the
largest shareholder in AIIB with a 26.06% voting power, followed by India with
a 7.62% voting power.
·
Recently, the
AIIB has approved a $750 million loan to India to strengthen the country’s
battle against the adverse impact of Covid-19 pandemic on poor and vulnerable
households.
The loan is co-financed by the AIIB and the Asian Development Bank.
·
It aims to
ensure economic resilience to prevent long-term damage to productive capacity,
including human capital.
Reverse Zoonosis
Zoonosis is an infectious disease caused by a
pathogen that has jumped from an animal to a human.
When the pathogen is transmitted from human to animals, it is known as reverse
zoonosis.
The animal infected through the process may in turn re-transmit the infection
to humans under some circumstances.
Recently novel coronavirus SARS-CoV-2 has begun
infecting minks farms in the Netherlands.
It could largely have been transmitted through indirect routes such as through
feed or bedding material, infectious droplets or by contaminated dust from the
bedding.
Literature has shown that the phenomenon of reverse
zoonosis can also happen in case of other pathogens such as resistant bacteria.
This can add to the greater spread of bacterial
infections in animals.
It can also involve an increased use of antibiotics
to treat or prevent such infections, eventually contributing to another slow
pandemic of antimicrobial resistance.
Minks
Minks are small semi-aquatic
mammals raised for their fur.
·
Mink oil is used
in some medical products and cosmetics, as well as to treat, preserve and
waterproof leather.
·
There are two
extant species referred to as "mink" - the American mink and the
European mink.
·
All European
mink have a large white patch on their upper lip, whereas only some American
mink have this marking, therefore, any mink without the patch is certainly of
the American species.
International
Day of Yoga 2020 is celebrated on 21 June.
International Day of Yoga 2020 is celebrated on 21
June every year to create awareness globally about the benefits of practicing
yoga. The aim is to improve health and create awareness about the importance of
maintaining health to the people. WHO aims to fulfill the Global Action Plan on
Physical Activity 2018–2030: More active people for a healthier world.
Theme:
The theme of the 6th International
Day of Yoga 2020 is “Yoga at Home and Yoga with Family”. Due to COVID-19, this
year International Day of Yoga will be celebrated virtually at 7 am on June 21
so people will join through digital platforms.
History:
The idea of International Day of
Yoga was proposed by Prime Minister Narendra Modi at the United Nations General
Assembly (UNGA) in 2014. PM Narendra Modi also suggested 21st June as
International Yoga Day because 21st June is the longest day in the Northern
Hemisphere and has much significance in different parts of the world. On 11
December 2014, UNGA proclaimed 21 June as the International Day of Yoga by
passing resolution 69/131.
AIM partners with CIL to boost its Innovation and
Entrepreneurship initiatives.
Coal India Limited (CIL) has agreed to partner with
Atal Innovation Mission (AIM), NITI Aayog to support proactively the flagship
mission's innovation and entrepreneurship initiatives across the country. A
strategic Statement of Intent (SoI) partnership between AIM and Coal India
Limited was signed and exchanged in a virtual e-summit for the 19 June.
Highlights:
AIM has various innovation programs and
entrepreneurial ecosystem building initiatives such as:
·
Atal Tinkering
Labs (ATL) at a school level Atal Incubation Centres (AIC) at institutional
levels Atal Community Innovation Centres (ACIC) for Tier-2, Tier3 cities, and
rural India Atal New India Challenges (ANIC) at an industry level.
·
Applied Research
and Innovation (ARISE) for stimulating innovations in the MSME industry
·
The partnership intends to conduct various
activities/programs to support greater awareness and promotion of the
innovation ecosystem through the above-mentioned AIM programmes and newer
initiatives.
IIT-Guwahati
develops affordable diagnostic kits for COVID-19 pandemic.
Indian Institute of Technology (IIT) Guwahati in
association with RR Animal Healthcare Ltd and Guwahati Medical College and
Hospital (GMCH) developed low-cost diagnostic kits. These are Viral Transport
Media (VTM) kits, RT-PCR kits, and RNA isolation kits.
VTM kits:
·
The VTM kits are
used to collect nasal and oral swab specimens from an individual source to a
laboratory safely for culture and testing.
·
During this period, the virus in the sample
specimens will remain intact until the testing procedure is completed.
·
The kit consists of a comprehensive solution
specially formulated for the collection and transport of SARS-CoV-2.
·
These kits comprise two transport media, one
for nasopharyngeal and the other for oropharyngeal specimen collection swabs.
·
Both of these are safe to use as they are
recommended and validated by the Centre for Disease Control and Prevention
(CDC) as well.
·
The complete package of the VTM Kits will be
suitable for the collection, transport, maintenance, and long-term freezer
storage of viral specimens.
·
The unique formulation of the transport medium
will help to preserve the viability of viruses for up to 72 hours, at
refrigerated temperatures.
·
These sterile VTM kits comply with the
CDC-recommended configurations for viral specimen collection for COVID-19 and
are packed in user-friendly individual packs.
Global
Trends Report
Recently, the United Nations High Commissioner for
Refugees (UNHCR) has released its
annual Global Trends report before the World Refugee Day (20th June).
Highlights:
·
Global Trends is
published every year to count and track the numbers of refugees,
internally displaced people, people who have returned to their countries or
areas of origin,
asylum-seekers, stateless people and other populations of concern to UNHCR.
·
Of the 80
million people, 26 million were cross-border refugees, 45.7 million were
internally.
·
Five countries account for two-thirds of
people displaced across borders: Syria, Venezuela, Afghanistan, South Sudan and
Myanmar.
·
Syria has been
the top country of origin for refugees since 2014.
·
Around 80
million people were forcibly displaced by the end of 2019 — which is nearly 1% of
the global population. Half of those displaced were children.
Causes of
Displacement:
·
Persecution,
conflict, violence, human rights violations or events seriously disturbing
public order were the main reasons behind the forced displacement.
·
80% of the world’s displaced people are in
countries or territories affected by acute food insecurity and malnutrition –
many of them facing climate and other disaster risk.
About Comparison of Displacement in Decade:
·
The number of refugees doubled from about 10
million in 2010 to 20.4 million at the end
of 2019. Close to 53% were newly displaced. 1 in every 97 people were affected
by forced
displacement in 2019, compared to 1 in every 159 people in 2010 and 1 in every
174 in 2005.
·
Nearly to 40% of those displaced (or 30-34
million) forcibly between 2010-2019 include children below 18 years of age.
Very few people who have been displaced were able to return to their homes.
·
In 1990s, on average 1.5 million refugees were
able to return home each year. That number has fallen to around 3,85,000 in the
past decade (2010-2019).
About World Refugee Day:
·
It is an international day designated by the
United Nations to honour refugees around the globe.
·
It falls each year on 20th June and celebrates
the strength and courage of people who have been forced to flee their home
country to escape conflict or persecution.
·
It is an occasion to build empathy and
understanding for the refugee’s plight and to recognize their resilience in
rebuilding their lives.
About United
Nations High Commissioner for Refugees:
·
It is a UN Refugee Agency and a global
organization dedicated to saving lives, protecting the rights and building a
better future for refugees, forcibly displaced communities and
stateless people.
·
It is created in 1950 to help millions of
Europeans who had fled or lost their homes.
·
It is headquartered at Geneva, Switzerland.
Way Ahead:
·
It underlines that forced displacement
nowadays is not only vastly more widespread but is simply no longer a
short-term and temporary phenomenon.
·
In the aftermath
of World War II, most countries agreed to protect refugees through the 1951
Refugee Convention.
·
There is a need for a fundamentally new and
more accepting attitude towards all who flee, coupled with a much more
determined drive to end conflicts that go on for years and that are at the root
of such immense suffering.
·
The People cannot be expected to live in a
state of upheaval for years on end, without a chance of going home, nor a hope
of building a future where they are.
·
The refugees should be provided asylum, since
it is a human right. Countries should not
deny asylum based on Race, Religion, Geography etc.
India's
trade ban with China.
The Indian government has tried to respond to the
border dispute with China by training its guns on trade. The idea resonating in
Indian streets is that Indians should boycott Chinese goods and thus “teach
China a so called lesson”.
Chinese Market
Share in India:
But, given China’s centrality and India’s
insignificant share in global trade, banning trade will barely hurt China while
adversely impacting Indian consumers and businesses.
·
Smartphones:
Market size: Rs 2 lakh Cr.; Share of Chinese products: 72%.
·
Telecom Equipment:
Market size: Rs 12,000 Cr; Share of Chinese products: 25%.
·
Auto
Components: Market size: 43.1 lakh Cr.; Share of Chinese products: 26%.
·
Internet
Apps: Market size: 45.0 Crore smartphone users; Share of Chinese
products: 66% of people use at least one Chinese app on their smartphones.
·
Solar Power: Market size: 37,916 MW; Share of Chinese products:
90%
·
Steel: Share of Chinese products: 18-20%.
·
Pharma/API:
Market size: 1.5 Lakh Crore; Share of Chinese products: 60%.
When is “Boycott
China” Possible?
When the economical gap between India and China is
narrowed, the country, prompted by
emotions of nationalism amid the standoff between the two countries, can
boycott Chinese
products and carve out a path for ‘Atma Nirbhar Bharat.’
Why is China
Cheaper?
·
Provision of
cheap labour is one of the factors that contribute to cheaper Chinese products.
·
Raw materials
are cheaper. They are a significant part of the total cost of the product.
Since
the Chinese firms invest in bulk purchases for bulk production, it saves the
tremendous
cost of production. Efficient business ecosystem comprising of a network of
suppliers,
component manufacturers, distributors, government agencies, and customers. All
have
key-roles to play in ironing out the production process.
·
Business loans are easily accessible,
especially for bigger industries which provides a
greater financial cushion to businesses in the manufacturing segment.
The Chinese factories have been criticized for their
lower compliance with health and safety regulations and environmental
protection laws.
·
China follows a
Value Added Tax (VAT) system. A tax which is charged only on the “value- added”
to a product, material or service at every stage of its further manufacture or distribution.
Exported goods are subject to zero per cent VAT. In simpler terms, they enjoy a
VAT exemption or rebate policy.
Why ‘Boycott
Chinese Products’ Movement is Difficult in India?
·
Trade deficit:
In 2018-19, India’s exports to China were mere $16.7 billion, while imports
were $70.3 billion, leaving a trade deficit of $53.6 billion.
·
Private Indian
companies with Chinese investment: Foreign Direct Investment
(FDI) from China stood at a total of $1.8 billion between 2015 and 2019.
Chinese tech.
investors have put an estimated $4 billion into Indian start-ups. Over a period
of five years ending March 2020, 18 of India’s 30 unicorns are now
Chinese-funded.
·
China’s dominance in the Indian digital
market: Apps with Chinese investments
constituted a substantial 50% of top app downloads (both iOS and G Play
combined) which includes web browsers, data sharing and social media apps as
per the Gateway house report.
·
A blanket ban on Chinese imports will hurt all
small businesses at a time when they are already struggling to survive, apart
from hitting India’s ability to produce finished goods
What can be
Done?
·
Estimates
indicate that a third of the Chinese imports constitute low-tech goods that
were either made earlier by Indians, or are still being made but in smaller
quantities.
·
These can surely
be discouraged, and re-replaced by local products and brands.
· In addition, such attempts will prove to be a fillip for the hundreds of small and medium firms, which have languished due to the lack of demand.If the MSME segment kicks off, the overall manufacturing sector will get a boost, which will benefit the ‘Make in India’ scheme.
·
As local sales grow, Indians will become
competitive. They can emerge as exporters of these products, and battle
globally with China.
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