Government Schemes & Policies
- Export Credit Guarantee Corporation’s new scheme to enhance loan availability for exporters
- Digital Platform to Give Single Point Access to Exporters
Environment, Ecology & Disaster Management
- India working to eliminate harmful HCFC by 2020
Defence & Security Issues
- SITMEX 2019
[Note: Today’s PIB Daily News are already covered in Today’s Current Affairs Analysis. This PIB News Analysis news are only for those who wants to get only PIB news]
For IASToppers Current Affairs Analysis Archive, Click Here
For IASToppers’ PIB Daily Archive, Click Here
Government Schemes & Policies
Export Credit Guarantee Corporation’s new scheme to enhance loan availability for exporters
Union Minister of Commerce & Industry said that Export Credit Guarantee Corporation of India (ECGC) has introduced a new scheme called ‘NIRVIK’ to enhance loan availability for exporters and ease the lending process.
ABOUT NIRVIK SCHEME
- NIRVIK scheme strives to simplify the process of procuring a loan from financial institutions and aims to increase the loans offered to exporters in the country.
BENEFITS OF NIRVIK SCHEME:
The scheme will:
- Ensures that the foreign and rupee exchange rates remain below 4 per cent and 8 per cent
- High premium rates for gems, jewellery and diamond (GJD) sectors with a limit of more than Rs.80 crore due to high loss ratio
- Enables the Indian exports to be competitive in national and international markets
- Reduced cost of insurance and tax reimbursements to increase productivity and increase credit loans
- Reduced cost of credit due to capital relief
- Enhances accessibility and affordability of credit for exporters.
- Helps make Indian exports competitive.
- Makes ECGC procedures exporter friendly.
- Ensures timely and adequate working capital to the export sector.
The insurance cover is expected to bring down the cost of credit due to capital relief, less provision requirement and liquidity due to quick settlement of claims.
ABOUT EXPORT CREDIT GUARANTEE CORPORATION (ECGC)
- ECGC Ltd, wholly owned by Government of India, was set up in 1957.
- It was Formerly known as Export Credit Guarantee Corporation of India
- It aims to promote exports from the country by providing credit risk insurance and related services for exports.
- It functions under the administrative control of Ministry of Commerce & Industry and is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking, and insurance and exporting community.
- Finance Minister in Pandit Nehru’s cabinet appointed a special committee under the Chairmanship of T.C.Kapur to examine the feasibility of setting up an effective organization to provide insurance against export credit risks.
- The Government accepted the recommendations of Kapur Committee and thus the Export Risk Insurance Corporation (ERIC) was registered in 1957.
WHAT DOES ECGC DO?
- Provides a range of credit risk insurance covers to exporters against loss in export of goods and services.
- Offers Export Credit Insurance covers to banks and financial institutions to enable exporters to obtain better facilities from them.
- Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan.
HOW DOES ECGC HELP EXPORTERS?
- Offers insurance protection to exporters against payment risks.
- Provides guidance in export-related activities.
- Makes available information on different countries with its own credit ratings.
- Makes it easy to obtain export finance from banks/financial institutions.
- Assists exporters in recovering bad debts.
- Provides information on credit-worthiness of overseas buyers.
NEED FOR EXPORT CREDIT INSURANCE
- The Payments risks have assumed large proportions today due to the far-reaching political and economic changes.
- However, an outbreak of war or civil war may block or delay payment for goods A coup or an insurrection may also bring about the same result. Economic difficulties or balance of payment problems may lead a country to impose restrictions on either import of certain goods or on transfer of payments for goods imported.
- Export credit insurance is designed to protect exporters from the consequences of the payment risks, both political and commercial, and to enable them to expand their overseas business without fear of loss.
Digital Platform to Give Single Point Access to Exporters
Union Minister of Commerce & Industry and Railways launched Common Digital Platform for Issuance of electronic Certificates of Origin (CoO).
WHAT IS A CERTIFICATE OF ORIGIN?
- A certificate of origin is a document declaring in which country a commodity or good was manufactured. It contains information regarding the product, its destination, and the country of export.
- It is essential in international trade transactions because it is the proof certifying the origin of the product, which is in turn the basis to determine the tariffs and other trade measures that will be applied.
CERTIFICATE OF ORIGIN IN INDIA
- India has 15 Free Trade Agreements (FTAs)/ Preferential Trade Agreements (PTAs) with various partner countries under which Indian exporters avail reduced import tariffs in the destination country. In order to avail this benefit, the exporters must provide a preferential CoO.
- These certificates are issued by designated agencies in India after vetting of the rules of origin criteria as per the respective FTA/PTA.
- Some designated agencies for CoO issuance are Export Inspection Council India (EIC), Directorate General of Foreign Trade (DGFT), Marine Products Export Development Authority (MPEDA), Textile Committee and Tobacco Board.
ABOUT THE COMMON DIGITAL PLATFORM FOR ISSUANCE OF ELECTRONIC CERTIFICATES OF ORIGIN (COO):
- A new common digital platform for issuance of electronic preferential CoOs has been conceptualized to address various challenges in the current process.
- The platform has been designed and developed by DGFT and Regional & Multilateral Trade Relations (RMTR) Division, Department of Commerce, Ministry of Commerce and Industry.
- This platform is a single access point for all exporters and for all free trade agreements (FTAs)/ preferential trade agreements (PTAs).
- Further, it provides administrative access to Department of Commerce for reporting and monitoring purposes.
CHANGES MADE IN NEW PLATFORM
Environment, Ecology & Disaster Management
India working to eliminate harmful HCFC by 2020
On the World Ozone Day, Environment ministry said that India is proactively working to completely phase out harmful ozone depleting hydrochlorofluorocarbons (HCFC) by 2020.
ABOUT DRAFT INDIA COOLING ACTION PLAN (ICAP)
- Draft ICAP was released by environment minister to provide sustainable cooling and thermal comfort for all while securing environmental and socio-economic benefits for the society.
- ICAP aims to assess of cooling requirements across sectors in next 20 years and the associated refrigerant demand and energy use,
- India is the first country in world to develop such a document (ICAP).
GOALS OF ICAP
- Recognition of cooling and related areas as a thrust area of research under national science and technology programme
- Reduction of cooling demand across sectors by 20% to 25 % by 2037-38
- Reduction of refrigerant demand by 25% to 30% by 2037-38
- Reduction of cooling energy requirements by 25% to 40% by 2037-38, and
- Training and certification of 100,000 servicing sector technicians by 2022-23
BENEFITS OF ICAP:
The following benefits would accrue to society over and above the environmental benefits:
- Thermal comfort for all – provision for cooling for EWS and LIG housing
- Sustainable cooling – low GHG emissions related to cooling
- Doubling Farmers Income – better cold chain infrastructure – better value of products to farmers, less wastage of produce
- Skilled workforce for better livelihoods and environmental protection
- Make in India – domestic manufacturing of air-conditioning and related cooling equipment’s
- Robust R&D on alternative cooling technologies – to provide the push to innovation in a cooling sector
ABOUT MONTREAL PROTOCOL
- The Montreal Protocol, finalized in 1987, is a global agreement that regulates the production and consumption of nearly 100 man-made chemicals referred to as ozone depleting substances (ODS).
- The Protocol is to date the only UN treaty ever that has been ratified by all 197 UN Member States.
- The Multilateral Fund for the Implementation of the Montreal Protocol was established in 1991 to provide assistance to developing country parties to the Montreal Protocol.
- In 2007, the Parties decided to accelerate their schedule to phase out Hydrochlorofluorocarbons (HCFCs). Developed countries will completely phase them out by 2020 while Developing countries agreed to complete phase-out of HCFCs by 2030.
- In 2016, Parties to the Montreal Protocol adopted the Kigali amendment in Rwanda to phase down production and consumption of hydrofluorocarbons (HFCs) worldwide. Countries approved gradual reduction by 80-85 per cent by the late 2040s.
INDIA’S EFFORT IN ELIMINATING HCFC
- In 2017, India launched the ‘HCFC phase out’ programme under its goal to end use of harmful ozone-depleting substances (ODS) by switching over to non-ozone depleting and low global warming potential technologies.
- As part of this programme, India has decided to phase out HCFC 141b, which is a chemical used in foam manufacturing, by January 1, 2020.
- Government has partnered with the Central Institute of Plastics Engineering and Technology (CIPET) for providing competency enhancement of system houses and Micro, Small and Medium enterprises in foam manufacturing sector for ensuring smooth phase out of HCFC-141b.
- Government is implementing a project jointly to enhance skills and provide certification to one lakh refrigeration and air-conditioning service technicians with the Ministry of Skill Development and Entrepreneurship (MSDE) under Skill India Mission – Pradhan Mantri Kaushal Vikas Yojana (PMKVY).
- “Keep Cool and Carry on”: The Montreal Protocol is the theme of 24th World Ozone Day celebrations.
Defence & Security Issues
- A maiden trilateral exercise, SITMEX 2019, involving navies of Singapore, Thailand, and India commenced at Port Blair.
ABOUT THE SITMEX 2019
- It is a 5-day long military exercise between navies of Singapore, Thailand, and India.
- It is aimed at bolstering the maritime inter-relationships amongst Singapore Thailand and India, and contribute significantly to enhancing the overall maritime security in the region.
- It has two phases: During the harbour phase, professional exchanges would be organised. The sea phase will host surface and air operations involving Gunnery, Force Protection Measures and Communication drills.