Defence Research and Development Organisation (DRDO)
Context :
Defence Research and Development Organisation (DRDO) has been tracking the spread of Coronavirus (COVID-19) since the world media started reporting its devastating impact in China’s Wuhan Province. The DRDO took a call in first week of March 2020 to enhance efforts to create counter measures to stop the spread of the disease in India.
As a result of focused approach, at present DRDO is ready with four different items ready to be deployed in ‘War against Corona’.
- Hand sanitizer
- Ventilators
- N99 masks
- Body Suits
About DRDO :
DRDO stands for Defence Research and Development Organisation. It was established in 1958 by the Government of India, under the Ministry of Defence (Raksha Mantralay).
History of DRDO :
Established in 1958 by the Government of India, it was instituted by combining three major defence organisations namely:
- Defence Science Organisation (DSO)
- Defence Technical Development Establishment (DTDE)
- Directorate of Technical Development and Production (DTDP)
With a project in 1960 on Surface-to-Air Missiles (SAM), the Project Indigo was the DRDO’s first major defence project. This project was discontinued without any success.
RBI’s COVID-19 Economic Relief Package
Context :
Reserve Bank of India’s Monetary Policy Committee (MPC) has come out with its own measures to help deal with economic fall out of COVID-19 pandemic.
This was the first time that the MPC met outside its bi-monthly meeting calendar.
Four steps taken by the RBI:
- Increase the liquidity in the system.
- Make sure the lower policy rate is transmitted. Steps one and two are linked.
- Give a three-month window for a payback on all term loans.
- Take steps to reduce volatility and provide stability.
Measures announced and their impact:
Cut in repo rate:
A big cut in the repo rate by 75 basis points (100 basis points make a per cent, so three-quarters of a percentage point) to 4.4%.
A low repo rate has the overall effect of reducing interest rates for the system. Lower rates make it easier for entrepreneurs to take loans for working capital and for households for homes, vehicles and so on.
Cut in reverse repo rate:
The ratio has been cut by 90 bps to 4%.
This is the rate at which banks lend to the RBI.
A reduction of the reverse repo to 4% makes it unattractive to banks to park it with the RBI and banks will be nudged to lend.
Moratorium on Repayments of Loans:
RBI has also allowed banks to defer payment of Equated Monthly Instalments (EMIs) on home, car, personal loans as well as credit card dues for three months till May 31.
The RBI also allowed lending institutions, banks to defer interest on working capital repayments by 3 months — a move aimed at addressing the distress among firms as production is down.
For banks and lending institutions, this will affect their cash flows as they may not be getting repayments for three months. But the RBI has reduced their cash reserve ratio (CRR) requirements, providing them additional liquidity.
Cut in Cash Reserve Ratio (CRR):
The RBI reduced the cash reserve ratio (CRR) by a full percentage point down to 3% for a year. The CRR is the percentage of demand and time deposits banks have to keep with the RBI.
RBI has reduced the CRR to 3%, freeing up ₹1.37 trillion for banks to lend. CRR has been chosen rather than SLR because this increases ‘primary liquidity’ with the banks a bit better.
Targeted long-term repo operations:
RBI will lend money to banks (a total of ₹1 trillion) that can be invested in bonds and other forms of lending instruments.
TLTRO will provide financing to credit institutions.
Marginal standing facility (MSF):
₹1.37 trillion will be made available under the emergency lending window called the marginal standing facility (MSF).
Banks will now be able to borrow 3% of their deposits under this window, up from the current 2%. Basically, RBI is willing to lend more than before.
Indian Army , Operation Namaste
context :
The Indian Army has code-named its anti-COVID-19 campaign as Operation Namaste to help the government in its fight against the pandemic.
Key Points
- Soldiers are advised to follow the lockdown, wherever they do not have any operational role, and stay fit. They are assured that their families will be well taken care of.
- Leave extension of those on leave as well as curtailment of leave to bare minimum have been imposed.
- Segregation facilities have been set up to observe troops already back from leave from various states.
- So far six quarantine facilities at Manesar, Jaisalmer, Jodhpur, Chennai, Hindan and Mumbai have been established where 1,463 people evacuated from coronavirus-affected countries have been accommodated.
- The forces are setting up more such facilities at Kolkata, Visakhapatnam, Kochi, Dundigal, Bengaluru, Kanpur, Jaisalmer, Jorhat and Gorakhpur which can be ready within 72 hours, if needed.
- 28 Armed Forces hospitals have been earmarked as COVID hospitals.
- These hospitals will include armed forces patients as well as civilian patients transferred from state health authorities.
- Five hospitals from the Army, Navy and the Air Force are conducting coronavirus tests using the RT-PCR methodology and more hospitals will be equipped soon with the resources.
- 62 Cantonment Boards have been instructed to identify beds in hospitals and health centres and guesthouses for any eventuality.
Contributions by Other Forces :
- Recently, Defence Research and Development Organisation (DRDO) also came forward to help by developing ventilators and providing other medical equipment.
- Indian Navy also contributed by delivering 60,000 face masks ordered by Indian Medical Association, Goa which were stuck in Delhi due to the lockdown.
Source : the hindu
Prime Minister’s National Relief Fund (PMNRF)
Context :
The Vice President of India and the Chairman Rajya Sabha, Shri M Venkaiah Naidu has contributed a sum equivalent to a month’s salary to the Prime Minister’s National Relief Fund (PMNRF) to strengthen the government’s efforts in combating COVID-19 outbreak in the country.
What is PMNRF? When was it setup :
In pursuance of an appeal by the then Prime Minister, Pt. Jawaharlal Nehru in January, 1948, the Prime Minister’s National Relief Fund (PMNRF) was established with public contributions to assist displaced persons from Pakistan.
- The resources of the PMNRF are now utilized primarily to render immediate relief to families of those killed in natural calamities like floods, cyclones and earthquakes, etc. and to the victims of the major accidents and riots.
- Assistance from PMNRF is also rendered, to partially defray the expenses for medical treatment like heart surgeries, kidney transplantation, cancer treatment, etc.
Key features :
- Disbursements are made with the approval of the Prime Minister.
- PMNRF has not been constituted by the Parliament.
- The fund is recognized as a Trust under the Income Tax Act and the same is managed by Prime Minister or multiple delegates for national causes.
- PMNRF is exempt under Income Tax Act.
- Prime Minister is the Chairman of PMNRF and is assisted by Officers/ Staff on honorary basis.
- These contributions also qualify as CSR (corporate social responsibility) spend for companies, making it more attractive in terms of tax exemptions.
How are the surplus funds of PMNRF deployed :
In general, funds are either disbursed immediately or they are committed for specific purposes.The balance of the funds invested in various forms with scheduled commercial banks and other agencies to ensure long term sustainability.
Type of contributions accepted in PMNRF :
- PMNRF accepts only voluntary donations by individuals and institutions.
- Contributions flowing out of budgetary sources of Government or from the balance sheets of the public sector undertakings are not accepted.
- At the time of natural calamity of devastating scale, Prime Minister, makes an appeal for donation to the fund.
Sources : pib