Financialisation
Why in News: The Chief Economic Adviser (CEA) recently warned that financialisation could potentially disrupt India’s macroeconomic outcomes.
About Financialisation
Financialisation refers to the growing size and influence of a country’s financial sector in relation to its overall economy.
- Economic Influence: It is a process where financial markets, institutions, and elites gain greater control over economic policies and outcomes.
- Shift in Focus: Financialisation marks a transition from traditional industrial or productive activities, like manufacturing, to financial activities such as trading, asset management, and speculation.
- Wider Impact: The term also highlights the increasing diversity of transactions and players in financial markets, affecting all sectors of the economy and society.
- Historical Context: This shift has occurred as economies moved away from industrial capitalism towards financial capitalism.
- Macroeconomic and Microeconomic Effects : It impacts both macro and micro-level economies by altering the structure and functioning of financial markets and influencing corporate behavior and economic policies.
- Sectoral Income Disparities: Financialisation has led to a rise in income in the financial sector, outpacing other sectors in the economy.
National Company Law Appellate Tribunal (NCLAT)
Why in News: The National Company Law Appellate Tribunal (NCLAT) has temporarily suspended the recent acquisition of power generation company Coastal Energen by a consortium headed by Adani Power.
About National Company Law Appellate Tribunal (NCLAT):
Establishment and Purpose
- Constituted under Section 410 of the Companies Act, 2013, NCLAT began functioning on 1st June 2016.
- It was created to expedite corporate dispute resolution and enhance transparency and efficiency in corporate governance and insolvency processes in India.
Functions:
- Appeals Against NCLT Orders: NCLAT hears appeals against orders from National Company Law Tribunals (NCLT) under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC).
- Appeals Against IBBI Orders: It addresses appeals against orders from the Insolvency and Bankruptcy Board of India (IBBI) under Sections 202 and 211 of the IBC.
- Appeals Against CCI Decisions: NCLAT handles appeals concerning decisions, directions, or orders passed by the Competition Commission of India (CCI).
- Appellate Authority for NFRA: NCLAT is the Appellate Tribunal for appeals against orders passed by the National Financial Reporting Authority (NFRA).
- Advisory Jurisdiction: It can provide opinions and advice when legal issues are referred to it by the President of India.
Headquarters and Composition:
- Location: NCLAT’s headquarters are located in New Delhi.
- Composition: NCLAT is composed of a chairperson, judicial, and technical members, all appointed by the Central Government based on expertise in law, finance, accountancy, management, or administration.
Case Disposition:
- Process: Upon receiving an appeal from an aggrieved person, NCLAT hears both sides and can confirm, modify, or set aside the appealed order.
- Timely Disposition: NCLAT is required to resolve appeals within six months of receipt.
- Further Appeal: Its decisions can be appealed to the Supreme Court of India.
Powers:
- Regulation of Procedures: NCLAT has the authority to regulate its own procedures and is vested with powers similar to a civil court under the Code of Civil Procedure, 1908. These powers include summoning witnesses, requiring document production, receiving evidence on affidavits, and issuing commissions.
- Enforcement of Orders: Any order made by NCLAT can be enforced like a decree made by a court in a suit.
- Exclusion of Civil Court Jurisdiction: Civil courts are barred from hearing matters that fall under NCLAT’s jurisdiction as per the Companies Act, 2013, or other laws.
- No Injunctions: Courts or other authorities cannot grant injunctions on actions taken by NCLAT under its legal powers.
Technical Textiles
Why in News: The Union Minister for Textiles recently stated that annual exports of technical textiles are expected to surpass $10 billion by 2030.
About Technical Textiles
Technical textiles are textile materials designed primarily for their technical performance and functional properties, rather than for aesthetic or decorative purposes.
- Alternate Terminologies: They are also referred to as industrial textiles, functional textiles, performance textiles, engineering textiles, invisible textiles, and hi-tech textiles.
- Key Properties and Applications: Technical textiles possess high physical, mechanical, thermal, and/or chemical properties, making them suitable for industrial applications like earthworks, construction, transport, defence, medical, and healthcare.
- Individual Use: They are used individually to meet specific functions, such as fire-retardant uniforms for firefighters or coated fabrics for awnings.
- Component Use: As components, they enhance the strength, performance, or other functional properties of other products.
- Manufacturing Materials: These textiles are made using both natural and man-made fibres.
- Classification: Technical textiles are divided into 12 groups based on their applications: Agrotech, Geotech, Buildtech, Mobiltech, Hometech, Clothtech, Indutech, Meditech, Sportstech, Protech, Packtech, and Oekotech.
National Technical Textiles Mission:
- Objective: Launched by the Union Ministry of Textiles, the mission aims to increase the penetration of technical textiles in India and capitalize on the sector’s growth.
- Vision: The mission’s goal is to position India as a global leader in the technical textiles industry.
Key Components
- Research, Innovation, and Development
- Promotion and Market Development
- Export Promotion
- Education, Training, and Skill Development
Target
- The mission aims to grow the domestic market size of the technical textile sector to $40-50 billion by 2024, with an average annual growth rate of 15-20%.
National Tiger Conservation Authority (NTCA)
Why in News: Conservationist organizations across India have called for the reversal of the ‘illegal’ relocation of villagers from tiger reserves, a move initiated by the National Tiger Conservation Authority (NTCA).
About National Tiger Conservation Authority (NTCA):
Establishment
- NTCA is a statutory body under the Ministry of Environment, Forest, and Climate Change (MoEFCC) aimed at strengthening tiger conservation.
- It was formed in 2005 following recommendations by the Tiger Task Force and received statutory status under Section 38L of the Wild Life (Protection) Amendment Act, 2006.
Objectives:
- Grant statutory authority to Project Tiger, ensuring the legal enforcement of its directives.
- Promote accountability in tiger reserve management through Center-State cooperation via MoUs.
- Provide Parliamentary oversight for tiger conservation efforts.
- Address the livelihood interests of local communities in areas surrounding tiger reserves.
NTCA Composition:
- The Minister in charge of MoEFCC serves as Chairperson.
- The Minister of State in MoEFCC acts as Vice-Chairperson.
- Other members include three members of Parliament, the Secretary (MoEFCC), and additional designated members.
Powers and Functions:
- Tiger Conservation Plan: Approve state government-prepared tiger conservation plans.
- Ecology Preservation: Ensure the sustainable use of land within tiger reserves, preventing detrimental ecological impacts.
- Tourism Regulation: Develop rules for tourism in tiger reserves and ensure compliance with them.
- Human-Wildlife Conflict: Implement measures to address conflicts between humans and animals, focusing on coexistence outside protected areas.
- Public Information: Release updates on tiger population, habitat conditions, and conservation efforts. NTCA reports on the status of tigers in India.
- Research and Monitoring: Approve, coordinate, and monitor tiger research activities.
- Support for Tiger Reserves: Facilitate management of tiger reserves in states and provide essential scientific, IT, and legal support.
- Capacity Building: Organize training programs for officers and staff to enhance conservation efforts.
Project Tiger:
Launch and Purpose
- Project Tiger was initiated in 1973 as a centrally sponsored scheme by the Government of India, aimed at conserving the Bengal tiger and its habitat.
- It was the first project in India dedicated to protecting the tiger population from poaching and other threats.
Goals
- Maintain a viable population of Bengal tigers in their natural habitat.
- Protect the species from extinction.
- Preserve biologically significant areas as natural heritage representing diverse ecosystems.
Tiger Reserves
- Tiger reserves were established under Project Tiger in 1973, initially covering nine reserves over 18,278 sq. km.
- Today, the project includes 54 tiger reserves spanning approximately 75,000 sq. km across India.
Agni-4 Missile
Why in News: India recently successfully test-fired the Agni-4 ballistic missile.
About Agni-4 Missile:
Type and Launch
- The Agni-4 is an intermediate-range ballistic missile.
- It was launched from the Integrated Test Range in Chandipur, Odisha.
- The test successfully confirmed all operational and technical parameters and was conducted under the Strategic Forces Command, part of India’s Nuclear Command Authority (NCA).
Features
- Range: Capable of reaching up to 4,000 kilometers.
- Size and Payload: The missile is 20 meters long, can carry a payload of 1,000 kg, and is fired from a road-mobile launcher.
- Type: It is a surface-to-surface missile with a mobile, two-stage solid-fuel system.
- Development: Designed and developed by the Defence Research and Development Organisation (DRDO).
Key Facts about Strategic Forces Command (SFC):
Role and Responsibilities
- Also known as the Strategic Nuclear Command, the SFC is part of India’s Nuclear Command Authority (NCA), responsible for command-and-control decisions regarding India’s nuclear weapons program.
- Manages and administers India’s tactical and strategic nuclear weapons stockpile.
Establishment
- The SFC was established on January 4, 2003.