6th April 2021
La Perouse Joint Exercise
Recently, the navies and aircraft of India, the US, Japan and Australia will be participating in La Perouse Joint Exercise.
- The role of the QUAD navies in the IOR (Indian Ocean Region) has been well illustrated by the effective cooperative engagement capabilities of the multi-national naval powers through naval exercises.
- In 2020, the MALABAR exercise had a full QUAD naval task force representation with the Australian warships too participating.
- With the Indo-US LEMOA (Logistics Exchange Memorandum of Agreement) in place, the US warships (including aircraft carriers) can get berths for refueling and repairs within the Indian ports.
- The interoperability amongst the QUAD Task Force too shall be possible when COMCASA (Communications Compatibility and Security Agreement) and BECA (Basic Exchange and Cooperation Agreement) are implemented in total.
La Perouse Joint Exercise
- It is a French multinational naval exercise.
- It is named after the eighteenth century French Naval explorer.
- The first edition of the La Pérouse joint exercise was initiated by France in 2019 which included ships from Australia, Japan and the USA.
- It is for the first time that Indian warships shall be participating in La Perouse exercise 2021.
- The government of India has said that the Indian naval ships Satpura and Kiltanalong with P-8I long-range maritime patrol aircraft are participating in the exercise.
- The exercise will showcase high levels of synergy, coordination and interoperabilitybetween the friendly navies.
Naval Significance of Indo-Pacific
- The Naval diplomacy being displayed by India is an indicator of this shaping dynamics in the Indo-Pacific.
- The Indian Navy has always maintained a tactical advantage over the IOR to ensure compliance to the internationally established Rules of the Road (ROR) for the seas.
- The Indo-Pacific is turning into a serious Naval Theatre for multi-national activities in order to establish a free, open, inclusive and a rule-based ordering of the Indo-Pacific.
- It aims to support the freedom of navigation and peaceful cooperative use of the seas.
- The goal is to respect and adhere to the international laws like the United Nations Convention on the Law of the Sea (UNCLOS) and peaceful resolution of territorial sea disputes.
Chaff Rocket
Recently, the Defence Research & Development Organization (DRDO) has developed three indigenous variants of ‘chaff rockets’.
New Variants of Chaff Rockets
- The DRDO’s facility Defence Laboratory Jodhpur (DLJ) has indigenously developed three variants of chaff rocket technology:
- Short Range Chaff Rocket (SRCR);
- Medium Range Chaff Rocket (MRCR); and
- Long Range Chaff Rocket (LRCR)
- The chaff system basically comprises of a multiple barrel launchers (Port and Starboard configuration), with each launcher possessing a built-in stabilization system against roll, pitch and yaw motions.
Chaff Rocket
- It is primarily a mechanism that when fired acts as a decoy to deflect the guiding mechanism of enemy missiles.
- It is developed for the protection of naval ships from guided-missile attacks.
- It is a passive expendable electronic countermeasure technology used worldwide to protect naval ships from enemy’s radar and radio frequency missile seekers.
- The chaff rockets deployed in the air reflect as multiple targets for the missile guidance systems and deflecting adversary missiles, thus protecting own assets.
- Chaff forms a volumetric radar reflecting material and is composed of distributed metalized radar reflector material.
E9 Initiative
Recently, Minister of State for Education will be attending consultation meeting of Education Ministers of E9 countries on E9 initiative: Scaling up digital learning to accelerate progress towards SDG4.
E9 Initiative
- It is a forum of nine countries, which was formed to achieve the goals of UNESCO's Education For All (EFA) initiative.
- It is spearheaded by the United Nations with nine countries, namely Bangladesh, Brazil, China, Egypt, India, Indonesia, Mexico, Nigeria and Pakistan.
- The forum represents over half of the world's population and 70% of the world's illiterate adults.
- It was launched in 1993 at the UNESCO's Education For All (EFA) Summit in New Delhi, India.
- It has become a forum for the countries to discuss their experiences related toeducation, exchange best practices, and monitor EFA-related progress.
Significance of E9 Initiative
- It aims to accelerate recovery and advance the Sustainable Development Goal 4agenda by driving rapid change in education systems in three of the 2020 Global Education Meeting priorities:
- Support to teachers;
- Investment in skills; and
- Narrowing of the digital divide
- The consultation is the first of a three-phased process to co-create an initiative on digital learning and skills, targeting marginalised children and youth, especially girls.
- It aims to explore possibility of co-creating and scaling up digital learning to achieve UN sustainable goal on quality education.
- The consultation will highlight progress, share lessons and explore opportunities for collaboration and scale-up to expand digital learning and skills.
Integrated Health Information Platform (IHIP)
Recently, the Union Minister of Health & Family Welfare has launched the Integrated Health Information Platform (IHIP).
- The accurate, reliable and timely information is crucial for a country such as India which has a population of 1.35 billion.
- India’s information system for precision public health is essential for delivering the right intervention at the right time, every time to the right population.
- The use of technology to enhance precision in public health, including the use of pathogen genomics, enhanced surveillance and informatics, and targeted interventions has steadily gone up.
Integrated Health Information Platform (IHIP)
- The new version of IHIP will house the data entry and management for India’s disease surveillance program.
- It is termed as the world's biggest online disease surveillance platform.
- It is a web-enabled near-real-time electronic information system that is embedded with all applicable Government of India's e-Governance standards, Information Technology (IT), data & meta data standards.
- It aims to provide state-of-the-art single operating picture with geospatial information for managing disease outbreaks and related resources.
- The key features of Integrated Health Information Platform (IHIP)
- Real time data reporting (along through mobile application); accessible at all levels (from villages, states and central level)
- Advanced data modelling & analytical tools
- GIS enabled Graphical representation of data into integrated dashboard
- Role & hierarchy-based feedback & alert mechanisms
- Geo-tagging of reporting health facilities
- Scope for data integration with other health programs
Significance of Integrated Health Information Platform (IHIP)
- It shall ensure near-real-time data in digital mode, having done away with the paper-mode of working in addition to tracking 33 diseases now as compared to the earlier 18 diseases.
- The refined IHIP with automated data will help in a big way in real time data collection, aggregation & further analysis of data.
- It will provide health information system developed for real time, case-based information, integrated analytics and advanced visualization capability.
- It can easily be integrated with other ongoing surveillance program, while having the feature of addition of special surveillance modules.
- It will provide analyzed reports on mobile or other electronic devices.
- An advanced digital platform for scouting the earliest signs of disease spread in the smallest of villages and blocks in the country will immensely help in nipping in the bud any potential outbreak or epidemic.
World Cities Culture Forum
Recently, the chief minister of Delhi has announced that he will be representing Delhi and India at the World Cities Culture Forum.
World Cities Culture Forum
- It was established in London in 2012 with eight cities (London, New York City, Tokyo, Shanghai, Paris, Istanbul, Sydney and Johannesburg) convened by the Mayor of London.
- The forum comprises 43 world cities including London, Tokyo and New York.
- The forum recognises the impact and importance of culture and creativity, and seeks to inculcate these values in public policy and city planning.
- The World Cities Culture report is published by the forum every three years, with data and details on innovative projects from cities across the world.
- It provides a way for policy makers in key cities to share research and intelligence, and explore the vital role of culture in their future prosperity.
- The 2021 theme of World Cities Culture Forum is ‘The Future of Culture’.
Significance of World Cities Culture Forum
- It will play a crucial role in re-imagining the culture of Delhi, especially in the wake of several devastating challenges and Covid-19 crisis.
- Delhi will be part of the World Cities Culture report which is the most comprehensive global dataset on culture in cities.
- The world cities champion culture to create dynamic cities to visit, study, work, or live.
- The Forum inspires cities to come up with new ideas, share challenges and work together to help all our citizens’ access culture.
- The Forum is conducting comparative research on member cities to build a strong evidence base about the many ways in which culture impacts on a world city and its inhabitants.
Saudi Arabia has raised oil shipping costs to Asia
Recently, the Saudi Arabia’s national oil company Saud Aramco has raised the price of oil shipments to Asia by between 20-50 cents per barrel.
Key Highlights
- Saudi Aramco has not raised the shipping prices for northwestern European customers and has even cut shipping prices for US customers.
- The move comes on the heels of a decision by the OPEC+ group of oil-producing countries to raise crude oil production by about 2 million barrels
What has led Saudi Arabia to raise shipping prices for Asia?
- The experts noted that the hike may be a signal to India, which has been looking todiversify supplies away from Saudi Arabia.
- India’s state-owned oil marketing companies are set to cut imports from Saudi Arabia in May in response to Saudi Arabia maintaining production cuts aimed at keeping oil prices elevated through April.
- The experts noted that the hike in shipping prices coupled with the relaxation in production cuts could help save face for Saudi Arabia and India after public disagreements between the two countries on crude oil production levels.
Why OMCs are planning to cut imports from Saudi Arabia?
- OPEC+, a group of 23 major oil-producing countries, had cut crude oil production levels during the peak of the Covid-19 pandemic as the price of Brent crude fell to below $20 per barrel.
- OPEC+ had decided to maintain lower production levels through April despite crude oil prices recovering to pre-pandemic levels.
- A consistent rise in crude oil prices has contributed to auto fuel prices reaching record highs in India as it imports over 80 per cent of its crude oil requirements.
- Saudi Arabia alone had extended a 1 million barrel per day production cut through April, contributing to elevated crude oil prices.
Impact of rising crude prices on India
- A consistent rise in crude oil pieces has led to the prices of petrol and diesel reaching a record high level across India, with the price of petrol crossing Rs 100 per litre in some parts of the country.
- The prices of both petrol and diesel have risen by about Rs 7 per litre since the beginning of the year despite oil marketing companies partially absorbing the impact of higher crude oil prices.
- The rising crude oil prices have also magnified the impact of central and state taxes on auto fuels which were hiked significantly in 2020 to boost revenues amid lower economic activity.
- The increase in price of oil shipments to Asia has raised the total cost of Arab light crude for key Asian importers such as India to $1.8 over the benchmark price.
Importance of Saudi Arabia as a source of crude oil for India
- Saudi Arabia has consistently been the second-largest source of crude oil for Indiaafter Iraq was displaced by the United States in February.
- According to data collated by the Directorate General of Commercial Intelligence and Statistics, India has imported 2.88 million tonnes of crude oil from Saudi Arabia in January.
- A reduction in crude oil imports from Saudi Arabia would likely lead to increased imports from other gulf countries and the United States.
- Saudi Arabia will continue to be one of the largest sources for the import of crude oil for India due to its geographical proximity and India’s large crude oil requirements.
National Security Act (NSA)
Recently, a close scrutiny of the orders by District Magistrates invoking the National Security Act shows why the draconian law is so readily invoked.
- In 1818, Bengal Regulation III was enacted to empower the British government to arrest anyone for maintenance of public order without giving the person recourse to judicial proceedings.
- In 1919, the Rowlatt Act allowed confinement without a trial.
- The Jallianwalla Bagh tragedy was a direct result of the protest against these Rowlatt Act.
- Post-independence, Indira Gandhi introduced the controversial Maintenance of Internal Security Act (MISA) in 1971, which was similar to the Rowlatt Act.
- It was repealed in 1977, and eventually the National Security Act (NSA) 1980 was promulgated.
National Security Act (NSA)
- The former Prime Minister Indira Gandhi brought the National Security Act in 1980.
- The maximum period of detention under National Security Act is:
- A person can be detained for up to 12 months without a charge.
- A person can be held for 10 days without being told the charges against them.
- The person can appeal before a high court advisory board but will not be allowed a lawyer during the trial.
National Security Act (NSA) matter because
- Article 22 (1) of the Indian Constitution says an arrested person cannot be denied the right to consult, and to be defended by, a legal practitioner of his choice.
- According to Section 50 of the Criminal Procedure Code (CrPC), any person arrested has to be informed of the grounds of arrest and has the right to bail.
- Under National Security Act, none of these rights are available to the person detained.
- The government holds the right to conceal information which it considers to be against public interest to disclose.
- The National Crime Records Bureau (NCRB), which collects crime data in India, does not include cases under the NSA as no FIRs are registered.
Provisions under National Security Act (NSA)
- The NSA empowers the state to detain a person without a formal charge and without trial.
- Under the NSA, a person is taken into custody to prevent him or her from acting in any manner prejudicial to “the security of the state” or for “maintenance of the public order”.
- It is an administrative order passed either by the Divisional Commissioner or the District Magistrate.
- It is not a detention ordered by police based on specific allegations or for a specific violation of the law.
- The DM can slap NSA against a person even if he is in police custody or if a person has been granted bail by a trial court.
- If the person has been acquitted by the court, the same person can be detained under the NSA.
Implications of National Security Act (NSA) on the accused
- The law takes away an individual’s constitutional right to be produced before the magistrate within 24 hours as is the case when the accused is in police custody.
- The detained person does not have the right to move a bail application before a criminal court.
- The DM who passed the detention order is protected under the Act as no prosecution or any legal proceeding can be initiated against the official who carried out the orders.
Rights of accused under National Security Act (NSA)
- The writ of Habeas Corpus is the only protection guaranteed under the Constitutionagainst the unchecked state power of taking people into custody under the NSA.
- The higher judiciary has held that the preventive detention under NSA has to be strictly construed keeping in view the “delicate balance between social security and citizen freedom”.
- The Supreme Court has held that to prevent “misuse of this potentially dangerous power, the law of preventive detention has to be strictly construed” and “meticulous compliance with the procedural safeguards” has to be ensured.
- Under Article 22(5), all the detained persons have the right to make an effective representation before an independent advisory board.
- The board consists of three members and is chaired by a member who is, or has been, a judge of a High Court.
Working of Pre-pack under Insolvency and Bankruptcy Code
Recently, the central government has promulgated an ordinance allowing the use of pre-packs as an insolvency resolution mechanism for Micro, Small and Medium Enterprises (MSMEs) with defaults up to Rs 1 crore, under the Insolvency and Bankruptcy Code (IBC).
- The move comes soon after the end of a one-year suspension of insolvency initiationimposed by the government in light of the Covid-19 pandemic.
- The government had last year also increased the minimum default threshold for insolvency proceedings from Rs 1 lakh to Rs 1 crore.
Pre-packs under IBC
- It is the resolution of the debt of a distressed company through an agreement between secured creditors and investors instead of a public bidding process.
- It has become an increasingly popular mechanism for insolvency resolution in the UK and Europe over the past decade.
- Under the pre-pack system, financial creditors will agree to terms with a potential investor and seek approval of the resolution plan from the National Company Law Tribunal (NCLT).
- The approval of a minimum of 66 per cent of financial creditors that are unrelated to the corporate debtor would be required before a resolution plan is submitted to the NCLT.
- The NCLTs are also required to either accept or reject any application for a pre-pack insolvency proceeding before considering a petition for a CIRP.
Benefits of pre-packs over Corporate Insolvency Resolution Process (CIRP)
- The CIRP is often criticised for taking too much time for resolution as over 86 per cent of the 1717 ongoing insolvency resolution proceedings had crossed the 270-day threshold.
- The key reasons behind delays in the CIRPs are prolonged litigations by erstwhile promoters and potential bidders.
- The pre-pack in contrast is limited to a maximum of 120 days with only 90 days available to the stakeholders to bring the resolution plan to the NCLT.
- The key difference between pre-packs and CIRP is that the existing management retains control in the case of pre-packs while a resolution professional takes control of the debtor as a representative of financial creditors in the case of CIRP.
- It allows for minimal disruption of operations relative to a CIRP.
Why introduction of pre-packs is necessary?
- The pre-packs are largely aimed at providing MSMEs with an opportunity to restructure their liabilities and start with a clean slate.
- The pre-packs are aimed at providing adequate protections so that the system is not misused by firms to avoid making payments to creditors.
- The pre-packs will help corporate debtors to enter into consensual restructuring with lenders and address the entire liability side of the company.
Protection of creditors from misuse by promoters
- The pre-pack provisions introduced by the central government provides for adequate protection to ensure the provisions were not misused by errant promoters.
- The pre-pack mechanism allows for a Swiss challenge for any resolution plans which proved less than full recovery of dues for operational creditors.
- Under the Swiss challenge mechanism, any third party would be permitted to submit a resolution plan for the distressed company and the original applicant would have to either match the improved resolution plan or forego the investment.
- The creditors are also permitted to seek resolution plans from any third party if they are not satisfied with the resolution plan put forth by the promoter.
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