TNPSC Current Affairs May 14, 2020

www.tnpsc.academy – TNPSC Current Affairs May 14, 2020 (14/05/2020)

 

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Topic: New Economic Policies in India, Latest Diary of Events

Economic stimulus measures

Economic stimulus measures announced by Finance Minister in the wake of series of lockdowns. The 15 measures announced include many sops for MSMEs, real estate, non-banking finance companies (NBFCs) and power distribution companies.

Background:

This is the first tranche of the Atmanirbhar Bharat Abhiyan announced by Prime Minister Narendra Modi as a ₹20 lakh crore economic package.

That package includes the ongoing Pradhan Mantri Garib Kalyan Yojana, meant to support the poorest and most vulnerable communities during the pandemic, as well as several measures taken by the Reserve Bank of India to improve liquidity.

Measures announced:

Changed Definition of MSME:

Previously, an enterprise with investment up to Rs 25 lakh was called a micro unit. Under the new definition, a firm upto investment of Rs 1 crore is to be called Micro unit, of Rs 10 crore is to be called as small unit and investment greater than Rs 20 crore will be called as medium unit.

With the changed definition both investment and turn over is used to define MSMEs. Under the new definition a firm with turn over of Rs 5 crore is to be called a micro unit, of Rs 50 crore will be called as small unit and turn over greater than Rs 100 core is to be called as Medium unit.

It is to be noted that for an enterprise to come under the category of MSME it has to fulfill both investment and turn over conditions. Also, under the new definition, the differentiation between the manufacturing and service based MSMEs are being removed.

Collateral free loans to MSMEs:

In a major boost to the MSME sector, collateral free loan of 3 lakh crore rupees has been announced with a moratorium of 12 months. These loans will benefit 45 lakh small and medium units.

For NBFCs:

₹30,000-crore special liquidity scheme for NBFCs. Investment would be made in primary and secondary market transactions in investment grade debt paper of NBFCs, HFCs and MFIs.

Other measures:

It also proposes Mandatory sourcing — up to ₹200 crore.

Relaxation in project under RERA Act.

Power distribution companies will receive a ₹90,000 crore liquidity injection.

Contractors will get a six-month extension from all Central agencies, and also get partial bank guarantees to ease their cash flows.

Employee Provident Fund (EPF) support, provided to low-income organised workers in small units under the PMGKY is being extended for another three months.

Mandatory EPF contributions are also being reduced from 12% to 10%.

For salaried workers and taxpayers, some relief was provided in the form of an extended deadline for income tax returns for financial year 2019-20, with the due date now pushed to November 30, 2020.

The rates of tax deduction at source (TDS) and tax collection at source (TCS) have been cut by 25% for the next year, while statutory provident fund (PF) payments have been reduced from 12% to 10% for both employers and employees for the next three months.

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Topic: International Events, India and its Neighbouring Countries

Inclusion of Taiwan in World Health Organisation (WHO) member

US lawmakers have written to over 60 nations to garner their support towards the inclusion of Taiwan in the World Health Organisation (WHO). These include Germany, Thailand, Canada, Britain, Saudi Arabia and Australia.

What’s the issue?

To this date, Taiwan is not a part of the WHO owing to objections from China which calls the nation a part of its own. However, that has not deterred Taiwan from seeking to join a ministerial meeting of WHO’s decision-making body, the World Health Assembly (WHA). The meeting is set to be held in the coming days of this month.

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Topic: Latest Reports and Events

WEF’s global Energy Transition index

World Economic Forum has released its global Energy Transition index.

The Energy Transition Index (ETI) is a fact-based ranking intended to enable policy-makers and businesses to plot the course for a successful energy transition.

Performance of India:

India has moved up two places to rank 74th. It has shown improvements on all key parameters of economic growth, energy security and environmental sustainability.

Gains have come from a government-mandated renewable energy expansion programme, now extended to 275 GW by 2027.

India has also made significant strides in energy efficiency through bulk procurement of LED bulbs, smart meters, and programs for labelling of appliances.

India is one of the few countries in the world to have made consistent year-on-year progress since 2015.

India’s improvements have come across all three dimensions of the energy triangle — economic development and growth, energy access and security, and environmental sustainability.

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Topic: Indian Army & Defence Activities

Tour of Duty” (ToD) scheme

Indian Army is considering to allow common citizens to join the 1.3- million-strong force for a three-year tenure to serve the nation under the ‘Tour of Duty (ToD) or ‘Three Years Short Service’ scheme.

Initially, 100 officers and 1,000 men are being considered for recruitment as part of test bedding of the project.

What is it?

It will be a voluntary engagement. The Army’s plan is to attract the best talent into the force and bring the civil society closer to the force by giving them an opportunity to experience military life.

It is for youths who “do not want to make defence services their permanent vocation, but still want to experience the thrill and adventure of military professionalism”.