National Bank for Financing Infrastructure and Development
Why in News: The government aims to bolster the capital base of the National Bank for Financing Infrastructure and Development (NaBFID) to 1 trillion with backing from banks.
About National Bank for Financing Infrastructure and Development (NaBFID):
- Establishment: Established in 2021 under the National Bank for Financing Infrastructure and Development Act, 2021, passed by Parliament.
- Nature: A specialized Development Finance Institution (DFI) in India.
- Objectives: Focuses on bridging gaps in long-term non-recourse finance for infrastructure projects, enhancing bond and derivatives markets, and promoting sustainable economic growth.
- Regulation: Regulated and supervised by the Reserve Bank of India (RBI) as an All-India Financial Institution (AIFI).
- Purpose: Designed to serve as a dedicated institution addressing the infrastructure sector’s long-term financing needs in India.
What is a Development Finance Institution (DFI)?
- Definition: Government-owned or public institutions providing funds for infrastructure and large-scale projects, often where traditional bank lending is impractical.
- Funding: DFIs typically offer two types of funding: Medium-term (1-5 years) and Large-term (more than 5 years).
Chagos Archipelago
Why in News: Recently, the Minister of External Affairs affirmed that India will uphold its support for Mauritius concerning the Chagos Archipelago, aligning with its stance on decolonization.
About Chagos Archipelago:
- Geographical Location: Located in the central Indian Ocean, approximately 1,000 miles (1,600 km) south of the southern tip of the Indian subcontinent.
- Colonial Establishment: Established as an overseas territory of the United Kingdom on November 8, 1965.
- Key Islands: Includes the Diego Garcia atoll, Danger Island, Egmont Islands, Eagle Islands, Nelsons Island, and Peros Banhos atoll. Diego Garcia hosts a strategic US military base.
- Climate: Experiences a tropical marine climate characterized by high temperatures and humidity moderated by trade winds blowing over the islands.
Chagos Island Dispute:
- Historical Background: The dispute centers on the archipelago, which Britain claimed alongside Mauritius in 1814.
- Military Lease: In 1966, Britain leased Diego Garcia to the United States, which sought a military base in the region.
- Chagossians’ Rights: Descendants of African slaves brought to the islands in the 18th century, the Chagossians have been engaged in a prolonged legal battle to return to their homeland.
- Mauritius’ Claim: Mauritius, gaining independence from Britain in 1968, has consistently asserted its sovereignty over the Chagos Islands.
- Legal Developments: In 2019, the International Court of Justice (ICJ) ruled against the UK’s governance of the Chagos Islands and called for its withdrawal from the archipelago.
Emergency Credit Line Guarantee Scheme
Why in News: Recently, government officials have reported that Non-performing assets (NPAs) under the Emergency Credit Line Guarantee Scheme (ECLGS) have been approximately 6 percent.
About Emergency Credit Line Guarantee Scheme (ECLGS):
- Initiation: Launched by the Government of India in 2020 in response to the Covid-19 crisis.
- Objective: Aimed at providing 100 percent guaranteed coverage to banks, non-banking financial institutions (NBFCs), and other lending institutions. This support is extended to business entities severely affected by the pandemic, helping them meet their working capital needs.
- Administration: Operated under the Ministry of Finance, Department of Financial Services (DFS).
- Management: The National Credit Guarantee Trustee Company Ltd (NCGTC), established by the Union Ministry of Finance, manages and provides guarantees for loans under this scheme.
- Phases: Rolled out in multiple phases including ECLGS 1.0, ECLGS 2.0, ECLGS 3.0, and ECLGS 4.0, each expanding the scheme’s coverage across various sectors.
- Loan Disbursement: Lending institutions sanction and disburse loans based on the borrower’s eligibility and assessed requirements.
- Financial Benefits: Processing charges, foreclosure, and prepayment charges are waived under the scheme.
- Collateral Requirement: No collateral is necessary for availing loans under the ECLGS.
Coalition of Epidemic Preparedness Innovation
Why in News: Recently, the Union Minister for the Ministry of Science & Technology inaugurated Asia’s inaugural “Pre-clinical Network Facility” dedicated to health research under the Coalition of Epidemic Preparedness Innovations (CEPI) in Faridabad.
About Coalition of Epidemic Preparedness Innovation (CEPI):
- Establishment: Established in 2017 through a collaborative effort involving public, private, philanthropic, and civil organizations.
- Founding: Founded in Davos, Switzerland, by the governments of Norway and India, along with the Bill & Melinda Gates Foundation, the Wellcome Trust, and the World Economic Forum.
- Mission: Dedicated to accelerating the development of vaccines and other biologic countermeasures against epidemic and pandemic threats, ensuring equitable access globally.
- Achievements: CEPI has facilitated the development of over 50 vaccine candidates and platform technologies targeting various high-risk pathogens and potential future threats like Disease X.
- Pandemic Strategy: CEPI’s strategic plan for 2022-2026 includes the ‘100 Days Mission’ aimed at reducing the development time for safe, effective vaccines against emerging threats to just 100 days.
India-CEPI Collaboration:
- Initiative: The Department of Biotechnology, Ministry of Science and Technology, Government of India, supports the implementation of the Ind-CEPI Mission titled “Epidemic preparedness through rapid vaccine development: Support of Indian vaccine development.”
- Execution: Managed through a dedicated Program Management Unit (PMU) located at the Biotechnology Industry Research Assistance Council (BIRAC).