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Daily Current Capsules - 11th March 2020

Defence
HAL eyes bases in four nations to push 'made-in-India' defence products

Relevance IN - Prelims ( about the objective of logistic bases + about tejas + about the geographical location of logisti bases ) + Mains ( GS II bilateral relations)
What's the NEWS
  • Hindustan Aeronautics Ltd (HAL) is looking at setting up logistics bases in Malaysia, Vietnam, Indonesia and Sri Lanka as part of initiatives to woo the countries to buy India's light combat aircraft Tejas and military helicopters.
Know! more about it
  • HAL is considering to build logistics bases in the four countries as they use a number of Russian-origin military aircraft and choppers whose serviceability is "very poor".
  • HAL is focusing on boosting exports in sync with the government's priority and identified South East Asia, West Asia and North Africa to sell key platforms like Tejas, attack helicopter Rudra and advanced light helicopter Dhruv.
  • HAL is looking at setting up maintenance facilities in Malaysia, Vietnam, Indonesia, Sri Lanka as having logistics bases is key to sell the products and ensure after-sales services.
Know! about Tejas
  • HAL Tejas is an Indian single-engine, delta wing, multirole light fighter designed by the Aeronautical Development Agency (ADA) and Hindustan Aeronautics Limited (HAL) for the Indian Air Force and Indian Navy.
  • It came from the Light Combat Aircraft (LCA) programme, which began in the 1980s to replace India's ageing MiG-21 fighters. In 2003, the LCA was officially named "Tejas"
  • Tejas has a "very good" export potential as it is a four-and-half generation fighter jet which can compete with some of the famous military jets in its class.
  • The Tejas has been Developed by Aeronautical Development Agency and the HAL. The lifespan of the jet would be a minimum of 30 years just like any other frontline combat aircraft.
  • The combat jets are classified under various generations depending on their avionics, capability and weapons systems. The current fleet of fighter jets with the IAF range from three-and-half generation to the fourth generation.
  • The Indian Air Force has already placed an order for 40 Tejas and is likely to seal a contract "very soon" with HAL for another 83 aircraft at a cost of around Rs 38,000 crore.
Why this move?
  • India is one of the largest importers of arms and military platforms globally. The government has been focusing significantly on promoting defence indigenisation by taking a slew of reform initiatives including liberalising FDI in defence sector.
  • Last month, Prime Minister Narendra Modi has set an ambitious defence export target of $5 billion dollars in the next five
Social Issues
No country in the world with gender equality : UNDP report
Relevance IN - Prelims ( about the findings of the gender social norm report) + Mains ( GS II Social issues)
What's the NEWS
  • Ninety per cent of people hold some bias against females, a new report by the United Nations revealed
Know! about UN's report on the "Gender Social Norms
  • UN's report on the "Gender Social Norms" index analyzed gender-based prejudices in areas including politics and education in 75 countries, covering over 80 percent of the world's population.
  • The report discloses that around 50 per cent of men believed that they had more right to a job than women.
  • While almost a third of respondents felt that it was acceptable for men to hit their partners.
  • The report maintained that "there is no country in the world with gender equality."
Know! about the findings of the report
  • About half of the world's men and women felt that men were better at politics.
  • In China, 55% of people thought men were better suited to be political leaders.
  • In the US, a country that is yet to choose a female president, around 39% of people felt that men were better at leading.
  • Women not preferred for senior positions
  • Women are paid less than men and are much less likely to be in senior positions.
  • Globally, 40% of people thought men made better business executives.
  • In India, 69 per cent of men felt that they could play the role of business executives better than women.
  • The number of female heads of government is lower today than five years ago, with only ten women in such positions in 193 countries. In 2014, it stood at 25.
Ministry of Development of North-East Region
Relevance IN - Prelims ( about NEVF + about NEDFI)
Know! about NEVF
  • The North East Venture Fund (NEVF) was formally launched on 9th September, 2017 with joint efforts from Ministry of Development of North Eastern Region (DoNER) and North Eastern Development Finance Corporation Ltd (NEDFi) to encourage entrepreneurs and Start-ups and to empower entrepreneurs from the North Eastern Region (NER).
  • It is a close ended fund with capital commitment of Rs 100 crore. The investment is ranging between Rs.25 lakh and Rs.10.00 crore per venture, which is long term in nature with investment horizon of 4-5 years.
  • The NEVF team has vigorously been participating in various events, seminars, conclaves etc across NER, and interacted with start-ups both on one to one and group basis to promote the fund.
  • The NEVF has till date made a disbursement of Rs.18.16 crore to 12 start-ups.
Know! about NEDFI
  • The North Eastern Development Finance Corporation Ltd (NEDFi) is a Public Limited Company registered under the Companies Act
  • It is notified as a Public Financial Institution under Section 4A of the said Act and was registered as an NBFC in 2002 with RBI.
  • The shareholders of the Corporation are IDBI, SBI, LICI, SIDBI, ICICI, IFCI, SUUTI, GIC and its subsidiaries.
  • NEDFi provides financial assistance to micro, small, medium and large enterprises for setting up industrial, infrastructure and agri-allied projects in the North Eastern Region of India and also Microfinance through MFI/NGOs.
Economic Developments
The Union Cabinet has approved the Companies (Second Amendment) Bill, 2019 to amend the Companies Act, 2013

Relevance IN - Prelims ( about the companies act 2013 amendments + about CSR) + Mains ( GS II Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
What's the NEWS
  • The Union Cabinet, approved as many as 72 amendments to the Companies Act, including decriminalising various offences, a move which would protect corporates in case of genuine commercial failures.
Know! about the amendments
  • The Bill removes criminality under the Act in case of defaults which can be determined objectively and which, otherwise, lack the element of fraud or do not involve larger public interest.
  • This Bill furthers ease of living for law-abiding corporates and de-clogs the criminal justice system in the country.
  • The Bill amends the Companies Act to enable listing of Indian firms on foreign stock exchanges.
  • With the amendments, as many as 23 offences would be recategorized out of 66 compoundable offences under the Act Seven compoundable offences would also be omitted under the Act
  • Government has removed the imprisonment angle and reduced the punishment proposed under the act. Besides, the quantum of penalty will also be reduced
  • Companies which have an obligation to spend Rs. 50 lakh per annum or less on corporate social responsibility(CSR) are no longer required to have a CSR committee.
  • Companies can carry forward the CSR obligations for the next years of they spend over the obliged 2% CSR in a particular year
  • Among others, the Cabinet has approved allowing Non-Residents Indians (NRIs) to own up to 100 per cent stake in disinvestment-bound Air India.
  • Currently, NRIs can acquire only 49 per cent in Air India. The announcement comes at a time when the government is looking to sell 100 per cent stake sale in the national carrier.
Know! about Corporate social responsibility (CSR)
  • The CSR activities of Indian companies are in line with the provisions of Section 135 with Schedule VII to the Companies Act, 2013.

  • Company which has a net worth of Rs 500 crore or more or a turnover of Rs 1000 crore or more in any financial year or having more than Rs 5 crore in net profits to spend at least 2% of the net profit made by the company during the last 3 financial years as CSR under the Companies Act 2013
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