Prelims 2020

7th September 2020 Daily Current Flash Cards

Food Fortification; OFS (follow-on public offer) Vs IPO (Initial Public Offer); ‘Power of Serbia’; Sex Ratio in India; Employment elasticity;
By IASToppers
September 07, 2020

 

 

 

What is Employment Elasticity?

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Answer

  • Employment elasticity is a measure of the percentage change in employment associated with a 1% change in economic growth.

Enrich Your Learning:

Employment elasticity

  • Employment elasticity is a measure of the percentage change in employment associated with a 1% change in economic growth.
  • It indicates the ability of an economy to generate employment opportunities for its population as per cent of its growth process. This implies that when employment generation is commensurate with the economic growth, there is positive employment elasticity.
  • Negative employment elasticity indicates a slow employment growth in comparison to economic growth.
  • Negative employment elasticity indicates that economy is not able to generate employment with the progress in economy.
  • Low and negative employment elasticity show “jobless growth”.

 

 

 

As per the Census data 2011, which state has the lowest rate of sex ratio in India?

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Answer:

  • The state of Haryana has the lowest rate of sex ratio (877 of females to that of 1000 of males) in India.

Enrich Your Learning:

Sex Ratio in India:

  • Sex ratio is used to describe the number of females per 1000 of males.
  • Sex ratio is a valuable source for finding the population of women in India and what is the ratio of women to that of men in India.
  • In the Population Census of 2011 it was revealed that the population ratio in India 2011 is 940 females per 1000 of males. .
  • Since decades India has seen a decrease in the sex ratio 2011, but since the last two of the decades there has been in slight increase in the sex ratio.
  • Since the last five decades the sex ratio has been moving around 930 of females to that of 1000 of males.

Key Facts:

  • The state of Haryana has the lowest rate of sex ratio in India and the figure shows a number of 877 of females to that of 1000 of males.
  • Kerala houses a number of 1084 females to that of 1000 males.
  • While Pondicherry and Kerala are the only two states where the number of female is more than the number of men, there are also states in India like that of Karnataka, Andhra Pradesh and Maharashtra where the sex ratio 2011 is showing considerable signs of improvement.
  • The main cause of this gender bias is inadequate education.
  • Pondicherry and Kerala houses the maximum number of female.
  • While the regions of Daman and Diu and Haryana have the lowest density of female population.

 

 

 

‘Power of Serbia’ is the first cross-border gas pipeline between Russia and India. True OR False?

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Answer: False

Correct Answer:

  • Power of Serbia is the first cross-border gas pipeline between Russia and China.

Enrich Your Learning:

Why in News?

  • Chinese President and Russian President has inaugurated the “Power of Siberia” gas pipeline.

About the Gas Pipeline:

  • Power of Serbia is the first cross-border gas pipeline between Russia and China.
  • The central aim of this gas pipeline is to pump natural gas to China and Russia’s far-east regions.
  • Under this pipeline project, Russia will deliver 1 trillion cubic meters of natural gas to China over the next 30 years.
  • From Siberia to China’s Yangtze River delta in Shanghai, the massive pipeline will cover 8,000 km with 5,111 km inside China passing through nine provinces and municipalities.

Significance of the project:

  • The new gas production center in eastern Russia is expected to provide additional opportunities for the acceleration of socio-economic development in eastern regions primarily through gas grid expansion.
  • For China, the significance of the pipeline project is that it will feed its industries which are mostly situated in the north.
  • The project will also allow China to move away from coal to cleaner alternatives as the pipeline supply will help secure its demand for energy security.

 

 

 

What is the difference between initial public offering (IPO) and offer for sale (OFS)?

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Answer:

IPO

OFS

1.       Unlisted company list them self to stock exchange

1.       Company already listed with stock 

exchange can opt for OFS

2.       Company offers share to the public for the first time

2.       Shares of already listed company is offered to the public

3.       Company sells new or existing securities

3.       Promoters of listed companies dilute -stake and no new shares are created.

4.       Company should fulfill SEBI Eligibility  criteria

4.       Only Top 200 Companies with respect to market capitalisation are eligible to use OFS facility.

5.       Process involved to raise funds is lengthy

5.       Process is as small that an OFS can be completed in one trading session

6.       No fee is required to pay by the investors 

6.       Investors are required to pay charges – like brokerage, securities transaction tax and other charges required to buy shares in the cash market.

Enrich Your Learning:

OFS (follow-on public offer) Vs IPO (Initial Public Offer)

  • Initial Public Offering (IPO) is the first time when a company floats its shares to public to raise funds by listing the company on stock exchange and also increases the potential audience to your stock.
  • It also gives a good benchmark for valuation of your stock.
  • Prior to an IPO, a company is considered to be private – with a smaller number of shareholders.
  • However, when an already listed company tries to raise fresh funds from public then it is referred as Follow-on Public Offer (FPO).
  • In case of an Offer for Sale (OFS), the public issue is planned to give an exit to the existing shareholders.

 

So the current promoter’s can dilute their stake by selling them to Public by exchange only. There are 3 such instances here.

  • Firstly, we have the disinvestment process wherein the government hives off a part of its stake to public shareholders to raise funds to finance its plans.
  • Secondly, many companies place shares with marquee anchor investors like PE Funds and VCs and a public issue is used to give an exit route to them.
  • Thirdly, many promoters may themselves be looking to monetize a part of their stake and that may also result in an OFS.

 

 

 

Fortification of rice cannot be done by coating the rice with nutrients. True OR False.

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Solution:

False

Correct statement:

  • Fortification of rice can be done by coating the rice with nutrients.

Enrich Your Learning:

What is Food Fortification?

  • Food Fortification is the addition of key vitamins and minerals such as iron, iodine, zinc, Vitamin A & D to staple foods such as rice, milk and salt to improve their nutritional content. These nutrients may or may not have been originally present in the food before processing.

Fortification of rice:

  • Rice is cultivated and is a staple food consumed in many parts of India (65% population in India) and the world. Rice also grows in diverse climates.
  • The milling of rice removes fat and micro nutrients, while polishing removes Vitamin-B1, Vitamin B6, Vitamin E and Niacin.
  • Rice can be fortified other than the above with several other micronutrients, such as iron, folic acid and other B-complex vitamins, vitamin A and zinc.
  • Fortification of Rice can address micronutrient deficiencies which is widely prevalent in rice consuming countries.

Technologies for fortification of rice:

  • Coating:
  • The nutrient (vitamin or mineral mix) is combined with ingredients such as waxes and gums. It is then sprayed on the surface of rice grains in several layers.
  • Dusting:
  • Micronutrients in the form of fine particles are blended with bulk rice. Utilises electrostatic forces between the rice’s surface and the micronutrients.
  • Extrusion:
  • Most preferable. Milled rice is pulverized and mixed with a premix containing vitamins and minerals
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Daily Current Flash Cards 2020 Prelims 2020
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