UPSC Current Affairs – January 21, 2021

The Supreme Court has asked the Attorney General to compile issues raised by states regarding the application of the 2006 ruling in M. Nagaraj case that upheld constitutional validity of reservations for Scheduled Castes and Scheduled Tribes (SC/ST) in promotions but directed that creamy layer concept should apply. The court now wants clarity on whether creamy layer should apply to SC/ST communities for promotion quotas before referring the matter to a larger bench, as sought by the central government.

The directive comes in light of a plea by the Centre to apply creamy layer to SC/ST reservation in promotions, contrary to the original ruling in the Indra Sawhney case that had excluded SCs/STs from this concept that is used to filter out socially advanced persons in Other Backward Classes to limit benefits of quotas.

Supreme Court Upholds Constitutional Validity of Insolvency Code Amendment

The Supreme Court has upheld the constitutional validity of the Insolvency and Bankruptcy Code (Amendment) Act, 2020 which mandates a minimum threshold of 100 homebuyers or at least 10% of total allottees in a real estate project to jointly trigger insolvency proceedings against defaulting builders.

This overturned an earlier order that allowed even a single homebuyer to approach the NCLT. The court agreed with the government that safeguards were needed to prevent a lone allottee from derailing real estate projects and causing distress for other buyers. However, the verdict made clear that each family member with an independent allotment can be considered a separate allottee for meeting the 100 allottee threshold.

SBI, ICICI and HDFC Retain Too Big to Fail Status

The RBI has decided to retain State Bank of India, ICICI Bank and HDFC Bank in the First Bucket implying their continued status as Domestic Systemically Important Banks that are perceived as ‘Too Big To Fail’. Based on assessment across indicators like size, interconnectedness, complexity and lack of substitutability, these banks face additional regulatory requirements like higher capital ratios to mitigate systemic risks and moral hazard concerns linked to their disorderly failure having potential to disrupt essential services and economic stability.

The central bank began identifying such banks annually from 2015 requiring them to set aside extra capital buffers under prompt corrective action norms.

Pandemic Accelerates Growth of Shadow Entrepreneurship

There has been a global increase in shadow entrepreneurs operating legitimate businesses selling goods and services without registering officially to avoid taxes and regulations. India has the second highest shadow entrepreneurship after Indonesia as per a 68-country study, spanning sectors like edtech, finance, online gaming and e-pharma.

Key reasons are loose enforcement, increased tech adoption and economic distress in the pandemic. Benefits include jobs, poverty alleviation and consumer choice. But downsides involve loss of tax revenues, decreasing competitiveness for formal firms, corruption outlets and inferior quality. Recommendations for tackling this include formalization incentives, better monitoring and coordination between government agencies.

Carbon Capture Investments Needed to Meet Climate Goals

With the world not on track to meet the Paris Agreement goal of restricting global warming within 1.5-2°C above pre-industrial levels, carbon sequestration is gaining policy attention as a mechanism for long-term removal of carbon dioxide from the atmosphere.

Both natural methods like forests and soil as well as artificial techniques of capturing and storing emissions from factories before release are being explored to bridge the gap along with mitigation policies. But high costs, lack of technological advancement and environmental risks around storage remain key challenges that need addressing even as carbon capture investments rise from corporations and venture capital funds betting on its future potential.

India Bets on Open RAN to Boost Telecom Gear Industry

TRAI Chairman has said that adoption of Open Radio Access Network architecture and software-defined networks can open up new opportunities for Indian companies to enter the telecom equipment market, currently dominated by multinationals. Open RAN allows interoperability between the radios, hardware and software of different vendors in the RAN or Radio Access Network that connects user devices to the core telecom network.

This is unlike the conventional approach where technology is proprietary and networks locked into a single vendor. Migration to O-RAN standards and disaggregated networks promises more innovation, cost savings and disruption for Operators while a competitive supply chain less reliant on foreign gear suits India’s self-reliance goals.

Elephant Rescued from Reservoir in Karnataka’s Bandipur Reserve

An elephant stranded in a reservoir abutting the prominent Bandipur Tiger Reserve in Karnataka had to be rescued recently, spotlighting threats to wildlife habitats adjoining reserves. Bandipur lies in one of India’s richest biodiversity zones, forming a key part of the Nilgiri Biosphere that sustains the world’s largest tiger and Asian elephant populations.

But reserve boundaries impede animal corridors posing risks at the tri-junction of Karnataka, Kerala and Tamil Nadu. Besides ecological factors, this landscape also witnesses human-animal conflicts due to settlements and linear infrastructure – underscoring the need for sensitive regional planning that balances conservation, livelihoods and development.

India-France Carry Out Air Combat Drills Near Pakistan Border

The Indian and French Air Forces have commenced a five-day bilateral exercise called ‘Desert Knight-21’ at the Jodhpur Air Force station close to the India-Pakistan border in Rajasthan. This air combat drill involving Rafale jets from both countries is part of the French contingent’s broader ‘Skyros Deployment’ mission across Asia.

It marks an increasing strategic engagement between the two sides. The Indian Rafales inducted last year will be participating alongside other assets providing a realistic scenario for the two Air Forces to share operational knowledge and best practices while also building interoperability through complex missions.

India Remembers Last Sikh Guru on 400th Birth Anniversary

India paid respects to the revered 10th and last Sikh Guru – Guru Gobind Singh on his 400th birth anniversary this year as per the Nanakshahi calendar. He was born in 1666 and assumed spiritual leadership at age 9 after his father Guru Tegh Bahadur’s execution by Mughal ruler Aurangzeb.

His seminal contributions include founding the Khalsa order distinguished by 5 symbols of faith, declaring the Sikh holy scripture to be succeeding Guru and resisting religious persecution with great valor during unstable times before his assassination in 1708. He enjoys widespread veneration as a spiritual visionary who strengthened the Sikh religion and community through his profound teachings and remarkable bravery.

Countries Increase Investments in Carbon Capture Due to Climate Change

There has been increasing investments to develop technology in the field of Carbon Sequestration and fight climate change, as global warming accelerates and greenhouse gas emissions continue unabated. Carbon capture involves long-term storage of carbon dioxide in reservoirs like forests, soil, underground geological formations and the ocean.

Both natural as well as artificial mechanisms are being employed for sequestering emissions before their release into the atmosphere. But methods are currently expensive, risky and inadequate to reach the high removal targets suggested by scientists to keep global temperature rise below 1.5-2°C this century, even as this nascent sector sees growth in corporate and venture capital funding aimed at technological improvements for scaled deployment.