DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 14th March 2024

Syllabus

• Prelims – Current event

Context: ‘Five Eyes’ alliance member New Zealand’s Deputy PM and Foreign Minister Winston Peters discusses bilateral ties with S. Jaishankar

Background:-

• At the end of a four-day visit to India, Mr. Peters said that India and New Zealand shared common views on Indo-Pacific security challenges.

About ‘Five Eyes’ alliance:-  

• Est: Post-World War II
• Members states: Australia, Canada, New Zealand, the United Kingdom, and the United States.
• The term “Five Eyes” refers to the five countries’ collective efforts to gather and share signals intelligence (SIGINT) to address common security threats and challenges.

Objectives:

• Intelligence Sharing: The alliance members collaborate to share signals intelligence, which includes intercepted communications and electronic data, to enhance their collective understanding of global security threats.
• Counterterrorism and National Security: The Five Eyes network focuses on countering terrorism and addressing other national security concerns by exchanging vital intelligence and cooperating on joint operations.
• Cybersecurity and Cyber Threats: Given the growing significance of cyber threats, the alliance works together to monitor and address cyber activities from adversarial nations and non-state actors.
• Information and Technology Sharing: The Five Eyes partners share expertise and technological advancements in the field of intelligence gathering, analysis, and cryptography.

Source: Hindu

Syllabus

• Prelims – Economy

Context: InvITs and REITs have gained popularity as preferred investment options, with fundraising, through the route, surging 10-fold year-on-year to ₹11,474 crore in 2023, supported by measures taken by regulator SEBI and attractive returns offered by the instruments.

Background:

• InvITs and REITs are new concepts in the Indian market but have been a popular choice globally for their lucrative returns and capital appreciation.

About Infrastructure Investment Trust (InvITs)

• An Infrastructure Investment Trust (InvITs) is a Collective Investment Scheme similar to a mutual fund.
• It enables direct investment of money from individual and institutional investors in infrastructure projects to earn a small portion of the income as return. ( FPI and InvITs)
• The InvIT is designed as a tiered structure with Sponsor setting up the InvIT which in turn invests into the eligible infrastructure projects either directly or via special purpose vehicles (SPVs).
• Regulated by: SEBI (Infrastructure Investment Trusts) Regulations, 2014.
• An InvIT has four parties namely: Trustee, Sponsor(s) and Investment Manager and Project Manager.
• While the trustee (certified by Sebi) has the responsibility of inspecting the performance of an InvIT, sponsor(s) are promoters of the company that set up the InvIT.

Types of InvITs

As per current SEBI Regulations InvITs can be divided into 5 key types depending on the types of infrastructure they own or operate:

• Energy such as power generation and distribution.
• Transport & Logisticsg. operating highways and other toll roads
• optical fiber networks and telecom towers
• Social and Commercial Infrastructure g. parks
• Water and Sanitationg. irrigation networks
• From the perspective of the source of funds, InvITs can be of two types:

Privately-Held InvITs:-

• This type of InvIT is not listed on the stock exchange and units of this type of infrastructure trust cannot be bought or sold on a stock exchange.
• All units of this type of unit are held privately by a very limited number of individuals or institutions.

Public-Listed InvITs:-

• After an Infrastructure Trust lists itself on the stock exchange, it is known as a public-listed InvIT.
• Units of a public-listed InvIT can be bought and sold on stock exchanges by retail as well as institutional investors.
• Current SEBI regulations do not require a mandatory listing of InvITs on stock exchanges.

Source: Hindu Businessline

Syllabus

• Prelims – Current Event

Context: The Supreme Court has recently examined a batch of over 80 petitions filed by various private mining companies.

Background:

• Petitions challenge the right of state governments to levy taxes on mining activities within their respective territories. The crux of the dispute lies in the distinction between royalty charged on mining and taxes imposed by states.

About MINES AND MINERALS DEVELOPMENT AND REGULATION ACT (MMDRA):

• The The Mines and Minerals (Development and Regulation) Act, 1957 forms the basic framework of mining regulation in India.
• The act is applicable to all minerals except minor minerals and atomic minerals.
• MMDR Act, 1957, mandate that every mining lease holder needs to pay royalty for major minerals removed or consumed.
• This royalty compensates for the privilege of extracting minerals from leased areas.
• The MMDR Act explicitly places the responsibility for mineral development and regulation within the purview of the Central Government.
• Central Government has the authority to specify the royalty rates for various minerals.
• The Second Schedule of the MMDR Act provides royalty rates for various minerals.
• Under the MDR Act, states have the authority to collect royalties. This provision ensures that mining activities contribute to state revenue while adhering to sustainable practices.
• It was amended in 2015 and 2016 to bring several reforms in the mineral sector.

Source: Money Control

Syllabus

• Prelims – Economy

Context: Recently, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has made an important observation regarding the Minimum Alternate Tax (MAT).

Background:

• According to their recent ruling, the assessee is eligible to claim credit for MAT under the Vivad se Vishwas (VSV) Scheme for the relevant assessment year. This decision could have significant implications for taxpayers seeking resolution of their tax disputes.

About MINIMUM ALTERNATE TAX (MAT):

• Minimum Alternate Tax (MAT) is a provision in India’s Income Tax Act.
• MAT ensures that companies contribute a minimum amount of tax, regardless of their tax exemptions and deductions.
• MAT was introduced to bring “zero tax companies” into the tax net.
• It applies to domestic companies, foreign companies operating in India and Special Economic Zone units.
• The tax is calculated based on the normal income tax liability of the company or entity.
• MAT ensures tax fairness and prevents companies from completely avoiding taxes.
• The Vivad se Vishwas (VSV) Scheme aims to provide a mechanism for taxpayers to settle pending income tax disputes and avoid prolonged litigation.
• By allowing credit for MAT under this scheme, the Income Tax Appellate Tribunal (ITAT) is acknowledging the importance of providing relief to taxpayers and promoting a more efficient resolution process.

Source: Times of India

Syllabus

• Prelims – Economy

Context: The Food Corporation of India (FCI) has recently reported a decline in wheat stocks, falling below 100 lakh tonnes for the first time since 2018.

Background:

• Currently, the wheat stock stands at 97 lakh tonnes this month. Despite the drop in wheat stocks, the existing stock is sufficient to meet the National Food Security requirements and surpasses the buffer norm.

About Food Corporation of India (FCI):

• The Food Corporation of India (FCI), established in 1965, plays a crucial role in ensuring food security in India.
• FCI’s primary mandate is to procure, store, and distribute food grains across the country.
• It operates under the Ministry of Consumer Affairs, Food, and Public Distribution.
• FCI procures wheat, rice, and other food grains directly from farmers during the harvest season.
• This procurement helps stabilize prices and ensures that farmers receive fair remuneration.
• FCI maintains a buffer stock of food grains to meet emergency requirements, such as natural disasters or supply disruptions. This stock acts as a safety net for the nation.
• FCI supplies food grains to states for distribution through the Public Distribution System (PDS). Under the PDS, eligible households receive subsidized food grains at affordable prices.
• FCI operates a vast network of storage facilities across the country. These include godowns (warehouses) and silos where food grains are stored.
• FCI transports food grains from surplus-producing states to deficit states. It ensures that food reaches even the remotest areas.
• By regulating the supply of food grains, FCI helps stabilize prices in the market. It intervenes when prices rise too high or fall too low.
• FCI’s efforts contribute to national food security by ensuring a steady supply of essential commodities.
• The economic cost of food grains procured by the Food Corporation of India (FCI) is a total of Minimum Support Price (MSP) and bonus (if any) paid to the farmers plus the procurement incidentals and distribution cost.

Source: Economic Times

Previous Year Question

Q1. The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus

1. transportation cost only
2. interest cost only
3. procurement incidentals and distribution cost
4. procurement incidentals and charges for godowns

Syllabus

• Mains – GS 3

Context: India has recently overtaken China to become the largest contributor of inland capture water fisheries, thereby emerging as one of the top three fish-producing countries in the world.

Background:

• The Constitution amendment Bill was passed by the Lok Sabha with near-unanimity, with only two members opposing it and was unanimously passed by the Rajya Sabha.

Inland Fisheries:

• It refers to the harvesting, management, and conservation of fish generally in freshwater
• bodies such as rivers, lakes, reservoirs, ponds, etc.

It is mainly done by two methods:

• Capture fisheries: It is the method of obtaining fish directly from lakes, rivers, or ponds with the help of fishing gear or nets, etc.
• Culture fisheries: It is the method of obtaining fish by raising and harvesting them in controlled environments with tools of breeding or feed management, etc.

Significance/Benefits of Inland Fisheries:

• It provides nutritional and food security as fishes are rich in protein, omega-3 fatty acids, and Vitamin D. They act as cheap alternatives and help in dietary diversity and nutritional requirements.
• It provides economic benefits like employment opportunities, development of rural infrastructure, diverse supply chain, exports of processed products increasing foreign exchange earnings, etc.
• It helps to maintain healthy ecosystems by controlling invasive species and supporting biodiversity. Bioremediation helps in habitat restoration and removal of excess nutrients from urban or agricultural runoff and reduces the likelihood of toxic algal blooms.
• Ecological balance is sustained as fishes being an important component of aquatic food webs benefit other species as well.
• Traditional knowledge systems of the community and their strong cultural ties contribute to cultural heritage.
• Recreational fishing also promotes physical and mental well-being.

Issues/Challenges associated with Indian Inland Fisheries:

• Slow adoption of cutting-edge technologies such as innovative hatchery technologies, water-efficient aquaculture practices, etc.
• Limited extension services such as lack of standardised prices, and shortage of soil and water testing facilities limit the scope of development of the sector.
• Like lack of timely credit, inadequate price discovery mechanism due to lack of efficient electronic trading platform, post-harvest losses, etc.
• Like inadequate cold chain facilities, inadequate post-harvest infrastructure, etc.
• Inadequate mechanisation and use of traditional boats often result in water pollution and improper aquaculture management.
• Sustainability issues due to the rising demand for animal protein, fish stocks are often being fully exploited, overfished, or severely depleted at various places.

Source: Hindu Businessline

Q1.)With reference to the Mines and Minerals (Development and Regulation) Act, 1957, consider the following statements?

1. The act is applicable to all minerals except minor minerals and atomic minerals.
2. As per the Act, State Government has the authority to specify the royalty rates for various minerals.
3. Under the Act, states have the authority to collect royalties.

How many of the statements given above are correct?

1. Only one
2. Only two
3. All three
4. None   

Q2.) Consider the following statements about Minimum Alternate Tax (MAT):

1. It ensures that companies contribute a minimum amount of tax, regardless of their tax exemptions and deductions.
2. It applies to all companies in India, including foreign companies.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Q3.)With reference to the Food Corporation of India (FCI), consider the following statements:

1. FCI procures food grains directly from farmers during the harvest season.
2. FCI maintains a buffer stock of food grains to meet emergency requirements.
3. FCI supplies food grains to states for distribution through the Public Distribution System.
4. FCI transports food grains from surplus-producing states to deficit states.

How many of the statements given above are correct?

1. Only one
2. Only two
3. Only three
4. All four

Comment the answers to the above questions in the comment section below!!

ANSWERS FOR ’  14th March  2024 – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs.st

Q.1) – c

Q.2) – b

Q.3) – c