Daily GK Updates – 1st Feb, 2021

 

NATIONAL UPDATES:

 

1. Union Budget 2021-22 is being presented by FM Nirmala Sitharaman: Union Finance Minister, Nirmala Sitharaman is presenting the Union Budget 2021 for the 3rd time in a row. The Union Budget is the yearly financial report estimating the income and expenditure presented to outline future policies to be adopted by the government for sustainable growth and development. The Economic Survey 2020-21 was released on 29th January 2021 by the Chief Economic Advisor of India, Krishnamurthy Subramanian. According to the survey, India’s economy could contract 7.7 per cent in the financial year that ends on March 31. Finance minister Nirmala Sitharaman concluded her Budget speech at 12.50 pm.

Here are the key highlights from the Union Budget 2021-22:

(1) Total COVID-19 support measures amount to 13 per cent of GDP and total COVID-19 support measures by government and RBI amounts to Rs 27.1 lakh crore. The ‘Aatmanirbhar’ Packages accelerated India’s rate of reform.

(2) Rs 35,000 crore to be allocated for further funds for COVID-19 vaccines. We will provide more for COVID-19 vaccines if required. The private sector may be kept out of vaccination efforts it appears, a disappointment for them. At a blended cost of Rs255/dose (in the first phase), that will cover 2 doses of the vaccine for 68.6crore people in FY22.

(3) First of six pillars Aatmanirbhar Yojana in addition to the National Health Mission introduce the Aatmanirbhar Health Yojana with an outlay of Rs 64,180 crore over six years. This will strengthen the National Centre for Disease Control. Besides this, the government will also set up 15 Health Emergency Centres.

(4) Jal Jeevan Mission with an outlay of Rs 2.87 lakh crore to cover houses and to be implemented over five years. Budget 2021 will also launch Mission Poshan 2.0. Besides this, the launch of urban ‘Swacch Bharat Mission’ 2.0 with an outlay of Rs 1.42 lakh crore has been made.

(5) Allocation to rural infra development increased to Rs 40,000 cr in next fiscal from Rs 30,000 crore in FY21.

(6) NHAI has sponsored one InVit to attract investors. Thus 5 operational roads with Rs 5,000 crore value being transferred to NHAI InVit. NHAI operational roll roads are to be monetised. More than 13,000 km of roads awarded under Bharat Mala project. Around 3,800 km have been constructed in Bharatmala so far and 8,500 km to be awarded by March 2022. Will complete additional 11,000 km of NH corridor by March 2022. More economic corridors are being planned – 3,500 km of NH works are ongoing in Tamil Nadu.

(7) The government will allot Rs 1.03 lakh crore for National Highway Projects in Tamil Nadu; Rs 65,000 core for National Highway Projects in Kerala; Rs 25,000 crore for National Highway Projects in West Bengal.

(8) In Budget 2021, Union Finance Minister Nirmala Sitharaman has announced Rs 1.1 lakh crore for Indian Railways. A record Rs 1,10,055 crore has been provided for Indian Railways. Out of the total, Rs 1,07,100 crore will be provided for capital expenditure in 2021-22, says FM Nirmala Sitharaman.

(9) Power transmission assets of Rs 7,000 crore is to be transferred to Power Grid InvIT. The Centre will also provide Rs 2 lakh crore to states and autonomous bodies for Capex. We will nudge states for more capital expenditure. FY22 Capex has targetted at Rs 5.54 lakh crore v/s FY21’s Rs 4.39 lakh crore. The alternatives will be worked out so that consumers could choose from more than one power distribution companies. It’s a positive for Tata Power.

(10) Rs 1,000 crore to solar energy corporation and Rs 1,500 to renewable energy development agency.

(11) The government has allocated close to Rs 3.60 lakh crore in the Budget towards launching a “revamped”, reforms-based, result-linked power distribution sector scheme.

(12) Government has committed Rs 1.97 lakh crore for Production Linked Incentive Scheme (PLI) covering 13 sectors. Further, 7 textile parks will be launched for over three years.

(13) The FM has announced that a Bill will be introduced to set up a DFI or developmental financial institution to fund long-term infra projects with a capital of Rs 20,000 crore.  Rs 5 lakh crore will be lent by DFI in three years time.

(14) An asset monetisation dashboard will be created to provide clarity to investors.  For 2021-22; capital expenditure is seen at Rs 5.54 lakh crore which is up by 34.5 per cent year-on-year (YoY).

(15) Proposed to update the definition of small companies to be raised up to Rs 2 crore from Rs 50 lakh net worth.

(16) National Infrastructure Pipeline has been expanded to 7,400 projects. Further, projects worth Rs 1.1 lakh crore have been completed under the National Infra Pipeline. The government will also introduce a bill to set up DFI providing Rs 20,000 crore to launch the National Asset Monetisation Pipeline to fund new infra projects.

(17) Finance Minister Nirmala Sitharaman has announced voluntary vehicle scrapping policy. Vehicles to undergo fitness test – which is 20 years for passenger vehicles and 15 years for commercial vehicles. Further details of the scrappage policy to be announced shortly.

(18) Rs 2,217 crore for 42 urban centres with a million-plus population, to tackle the burgeoning problem of air pollution.

(19) The government plans to sell part of its holding in Life Insurance Corporation of India through an initial public offering in the coming year. An amendment to the existing Act to facilitate the public offer, says FM Nirmala Sitharaman.

(20) Strategic disinvestment of companies including BPCL, Air India, Pawan Hans, IDBI Bank, Container Corporation of India to be completed in 2021-22, Sitharaman has announced. The government will ask Niti Aayog to start working on identifying the next list of companies for strategic sale. FM announces further infusion of Rs 20,000 crore for public sector banks. FDI in insurance sector proposed to be hiked to 74% from 49% now.

(21) Finance Minister Nirmala Sitharaman earmarks Rs 1,500 crore for promoting a digital mode of payment.

(22) FM Sitharaman proposes an increase in agriculture credit target to Rs 16.5 lakh crore. “The MSP regime has undergone a change to assure price that is at least 1.5 times the cost of production across all commodities. The total amount paid to paddy farmers surged to Rs 1.72 lakh crore in 2020-21.”

(23) Finance Minister Nirmala Sitharaman announced an allocation of Rs 300 crore to the state of Goa for celebrating the 60th anniversary of the liberation from Portuguese rule.

(24) FM announces a special scheme for the welfare of women and children in Assam and West Bengal. Rs 1,000 crore for Bengal, Assam tea workers.

(25) Central University to be set up in Leh, Ladakh.

(26) Forthcoming Census could be India’s first digital Census, says Sitharaman allocating Rs 3,768 crore for FY-21.

(27) The government has given relief measures for senior citizens by removing the need to file income tax returns for those aged over 75 years. It has also announced a halving of the time frame for reopening of income-tax assessment cases from 6 years to 3 years. For reopening of serious tax evasion cases up to 10 years, the government has put in a monetary limit of cases involving over Rs 50 lakh in a year.

(28) The Finance minister surprised taxpayers by not announcing any change in income tax slab rates. No Covid tax, surcharges on income tax. NRIs to be spared from double taxation. New rules to be notified. Tax audit limit increased from Rs 5 crore to Rs 10 crore.

(29) Exemption duty on steel scrap up to March 2022; customs duty on naphtha cut to 2.5 pc

(30) Rationalising customs duties on gold and silver says FM in Budget for 2021-22; Customs duty on cotton increased to 10%, silk to 15%; Customs duty on solar lanterns cut to 5%.

 

2. India’s First ‘Gender Park’ in Kerala’s Kozhikode: The Kerala government is all set to launch Rs 300 crore three-tower ‘Gender Park’ in Kozhikode. The park will become functional on the occasion of the second edition of the International Conference on Gender Equality (ICGE-II). The park will be inaugurated by the Chief Minister of Kerala, Pinarayi Vijayan, in between February 11-13 that will also mark the inauguration of the second edition of ICGE-II. The gender park was established with the aim of creating relevant interventions so as to address a range of gender-based issues. It includes both off-campus and on-campus activities and other projects that work to empower the individuals and communities.

About the gender park: The gender park was established by the government of Kerala in 2013. It is an initiative that works towards gender equality and empowerment in Kerala. The headquartered for the initiative is in the capital of Kerala, Thiruvananthapuram. However, the main campus is at Silver Hills, Kozhikode. The campus has an area of 24-acre. The park has been set with its main focus on gender justice. The platform will provide an environment for policy analysis, research, capacity development, advocacy, economic and social initiative. The park will be operational under the Department of Social Justice. This space is first of its kind across the world.

Note: Kerala CM: Pinarayi Vijayan; Kerala Governor: Arif Mohammad Khan.

 

3. ISRO to launch City College’s academic satellite: ISRO chairman K Sivan is likely to inaugurate the ‘SriShakthiSat’ ground station at Sri Shakthi Institute of Engineering and Technology in Coimbatore. The station will help monitor the satellite developed by the institute, which is set to be launched by the ISRO. A satellite communication lab was established in the college in 2010. The satellite can detect fire and leaks on underground pipelines and collect info on bank thefts. ISRO is expected to launch this satellite, along with two other satellites built by JPR Institute, Chennai & GH Raisoni College of Engineering, Maharashtra.

Note: ISRO Chairman: K.Sivan; ISRO Headquarters: Bengaluru, Karnataka; ISRO established: 15 August 1969.

 

INTERNATIONAL UPDATES:

 

1. 5th Joint Meeting of the India-Japan Act East Forum: The 5th joint meeting of the India-Japan Act East Forum (AEF) was held in New Delhi. The meeting was co-chaired by Foreign Secretary Shri Harsh Vardhan Shringla, and Suzuki Satoshi, Ambassador of Japan to India. During the 5th meeting, the AEF reviewed the progress of ongoing projects in the North Eastern Region of India in various areas including connectivity, hydropower, sustainable development, harnessing of water resources, and skill development. They also exchanged views on cooperation in new areas such as healthcare, agro-industries and SMEs, bamboo value chain development, smart city, tourism and people-to-people exchanges.

History of India-Japan Act East Forum:  The AEF was established in 2017 to provide a platform for India-Japan collaboration in the North Eastern Region under India’s “Act East Policy” and Japan’s vision for a “Free and Open Indo-Pacific”.

 

OTHER UPDATES:

 

BANKING AND FINANCE

 

1. RBI cancels licence of Kolhapur-based Shivam Sahakari Bank: According to RBI, the licence of Maharashtra-based Shivam Sahakari Bank has been cancelled as it does not have adequate capital and earning prospects.  The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. With the cancellation of licence the process of paying the depositors as per the DICGC Act, 1961 will be set in motion. As per the data submitted by the Kolhapur-based bank, more than 99 per cent of the depositors are fully insured by Deposit Insurance and Credit Guarantee Corporation (DICGC). The bank with its present financial position would be unable to pay its present depositors in full.

Note: DICGC Chairperson: Michael Patra; DICGC Founded: 1961; DICGC Headquarters: Mumbai.

 

BUSINESS AND ECONOMY

 

1. Microsoft launches its new Taj Mahal inspired Engineering Hub: Tech major Microsoft has launched its new India Development Center (IDC) facility in Noida, Uttar Pradesh. The new centre will serve as a leading hub for driving advanced engineering and innovation. The centre will build on Microsoft’s commitment to tap India’s world-class engineering talent and create solutions for a global impact. IDC NCR is the third development centre of Microsoft in India after Bengaluru and Hyderabad. The IDC NCR workspace architecture is inspired by the Taj Mahal, one of the Seven Wonders of the World.

About the India Development Center: The IDC NCR facility will collaborate with Microsoft teams globally to build products and services for driving digital innovation. The centre will provide opportunities for engineering talent in the areas of Business & Productivity tools, AI, Cloud & Enterprise, Core Services, and the new Gaming division. The IDC NCR workspace architecture is inspired by the Taj Mahal, one of the seven wonders of the world. The structure is a unique amalgamation of the latest Microsoft technologies and locally sourced materials. The intricate artwork by local artisans and graphics inspired by India’s rich cultural heritage elevate the aesthetics of the office. Its stunning marble inlays, vaulted doorways, arches, and marble domes created by stonemasons and carpenters, are a tribute to the country’s historical and rich craftsmanship.

Note: Microsoft CEO: Satya Nadella; Microsoft Headquarters: Redmond, Washington, United States.

 

OBITUARIES

 

1. 1995 Nobel Chemistry Prize Winner Paul Crutzen passes away: The Nobel Prize-winning chemist Paul J. Crutzen, has passed away. He was 87. Dr. Crutzen won the Nobel Prize in Chemistry in 1995, jointly with Mario J. Molina and F. Sherwood Rowland, for their work in atmospheric chemistry, particularly concerning the formation and decomposition of ozone. He was known for his work on the ozone layer and climate change and for popularizing the term ‘Anthropocene’ to describe a proposed new era when human actions have a drastic effect on the Earth.