PIB Summary- 18th January, 2021 | PIB (Press Information Bureau) Summary - UPSC PDF Download

GST Compensation Shortfall

Context: 12^th instalment of Rs. 6,000 crore released to the states as back to back loan to meet the GST compensation shortfall.

Details

• The Ministry of Finance, Department of Expenditure has released the 12th weekly instalment of Rs. 6,000 crore to the states to meet the GST compensation shortfall. 
• The amount has been given to 23 states and 3 UTs who are members of the GST Council. 
• The remaining 5 states, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.

Background

• The Government of India had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs.1.10 Lakh crore in revenue arising on account of implementation of GST. 
• The borrowings are being done through this window by the Government of India on behalf of the States and UTs. 
• 12 rounds of borrowings have been completed so far starting from October 2020. 
• In addition to providing funds through the special borrowing window to meet the shortfall in revenue on account of GST implementation, the Government of India has also granted additional borrowing permission equivalent to 0.50 % of Gross States Domestic Product (GSDP) to the states choosing Option-I to meet GST compensation shortfall to help them in mobilising additional financial resources. 
• All the States have given their preference for Option-I.

Option-I

• The shortfall arising out of GST implementation will be borrowed by States through the issue of debt under a Special Window coordinated by the Ministry of Finance. 
• The objective is to ensure steady flow of resources similar to the flow under GST compensation on a bi-monthly basis. 
• The GOI will endeavour to keep the cost at or close to the G-sec yield, and in the event of the cost being higher, will bear the margin between G-secs and average of State Development Loan yields up to 0.5% (50 basis points) through a subsidy. 
• A special borrowing permission will be given by the GOI under Article 293 for this amount, over and above any other borrowing ceilings eligible under any other normal or special permission notified by the Department of Expenditure. 
• The interest on the borrowing under the Special Window will be paid from the Cess as and when it arises until the end of the transition period. 
• After the transition period, principal and interest will also be paid from proceeds of the Cess, by extending the Cess beyond the transition period for such period as may be required. The State will not be required to service the debt or to repay it from any other source. 
• The borrowing under the Special Window will not be treated as debt of the State for any norms which may be prescribed by the Finance Commission, etc. 
• The Compensation Cess will be continued after the transition period until such time as all arrears of compensation for the transition period are paid to the States. The first charge on the Compensation Cess each year would be the interest payable; the second charge would be the principal repayment. The remaining arrears of compensation accrued during the transition period would be paid after the interest and principal are paid.

Sushruta

Who was Sushruta? 

• Sushruta (c. 7th or 6th century BCE) was a physician in ancient India known today as the “Father of Indian Medicine” and “Father of Plastic Surgery” for inventing and developing surgical procedures. 
• His work on the subject, the Sushruta Samhita (Sushruta’s Compendium) is considered the oldest text in the world on plastic surgery and is highly regarded as one of the Great Trilogy of Ayurvedic Medicine (the other two being the Charaka Samhita, which preceded it, and the Astanga Hridaya, which followed it). 
• Sushruta is believed to have lived in Kashi. 

Contributions of Sushruta

• The Sushruta Samhita documented the aetiology of more than 1,100 diseases, the use of hundreds of medicinal plants, and instructions for performing scores of surgical procedures – including three types of skin grafts and reconstruction of the nose. 
• Sushruta’s treatise provides the first written record of a forehead flap rhinoplasty, a technique still used today to reconstruct a nose. 
• He was one of the first people in human history to suggest that a student of surgery should learn about the human body and its organs by dissecting a dead body. 
• In the eighth century CE, Sushruta Samhita was translated into Arabic as ‘Kitab Shah Shun al-Hindi’ and ‘Kitab-I-Susurud.’ 
• The first European translation of Sushruta Samhita was published by Hessler in Latin and in German by Muller in the early 19th century; the complete English literature was done by Kaviraj Kunja Lal Bhishagratna in three volumes in 1907 in Calcutta.

Chabahar Port

Context: Government of India strengthens cargo handling capacity of Chabahar Port, Iran.

Details

• India has supplied a consignment of two Mobile Harbour Cranes (MHC) to Iran’s Chabahar port, with a total contract value of over USD 25 Million under a contract agreement for supply of 6 MHC.
• This is a step towards India’s commitment towards infrastructure development of ‎Shahid Beheshti Port of Chabahar.

Background

• The bilateral contract between the Islamic Republic of Iran and Republic of India was signed in 2016 with a total value of USD 85 million ‎for Equipping, Mechanizing and starting Operations at Shahid Beheshti Port of Chabahar development Phase- I. 
• To achieve this ambitious aim, an SPV namely India Ports Global Limited (IPGL), Mumbai was incorporated under the ambit of the Ministry of Ports, ‎Shipping and Waterways.

Significance of Chabahar Port to India 

• Development of Chabahar port is the anchor for the expansion of economic and mutual relations between India and Iran and it will give a further boost to the maritime trade between both the countries. 
• The location of Chabahar Port has strategic advantage and high potential to provide connectivity among India, Iran, Afghanistan, Uzbekistan and other CIS countries specially Eastern CIS countries to increase trade between these countries.

About Chabahar Port

Chabahar Port is located in Sistan and Baluchestan province in the Southeastern part of Iran, on the Gulf of Oman.  In December 2018, India took over the operations of the Port. It was being operated by India Ports Global Private Limited (IPGPL). India’s first shipment of wheat to Afghanistan was sent through Chabahar Port. India began building a railway line between Chabahar port and Zahedan as part of the North-South Transport Corridor. Chabahar port is about 170 km away from Gwadar Port built in Pakistan by China.

What is the Meaning of Chabahar?
Chabahar is made of Persian words Chahar meaning four; and bahar meaning spring. It translates as a place that has spring in all the four seasons of the year. Chabahar is important for its fishery sector and will act as an important trade center connecting South Asia, Central Asia, and the Middle East. India is involved in plans to build a railway line from this place to the mineral-rich Hajigak region of Afghanistan.

Why is Chabahar Port Important to India? What is its Geopolitical Significance?
The multiple reasons behind the geopolitical significance of the Chabahar port are:

• Boost trade ties, diplomatic ties, and military ties with Iran. 
• Provides India with better connectivity to Afghanistan bypassing Pakistan. 
• It will be the gateway to the International North-South Transport Corridor which is a combination of road, rail, and sea routes connecting Russia, Europe, Central Asia, Iran, and India. 
• India can carry out humanitarian operations from this port if the need arises. 
• This port is just 170 km away from Gwadar port operated by China in Pakistan, hence this port would be of strategic importance to the Indian Navy and defense establishment.

Chabahar Port & India – Investments & Chronology of Developments
So far, Iran has signed only 2 agreements with India for investment in Chabahar. 

• It is related to Chabahar Port’s types of machinery and types of equipment. The equipment will be worth the US $ 85 million. 
• The 2nd deal is India’s investment worth $ 150 million. This amount was for the development of Phase 1 of the Port. Additionally $ 500 million credit is made available to Iran for importing rail tracks and operationalizing the port. 
• As per the deal, Iran’s Arya Banader and India Ports Global Private Limited (IPGPL) will develop and operate 2 terminals and 5 berths for 10 years, following an 18-month lease at Shahid Beheshti Port in Chabahar. 
• Shahid Beheshti Port, Chabahar consists of a 5 phase development plan. In December 2017, Phase 1 was inaugurated. Phase 1 helped in the expansion of Ports capacity from 2.5 million tonnes to 8.5 million tonnes. The cost incurred in phase 1 was $ 1 billion. 
• After a series of meetings between Indian and Iranian Foreign Ministry; the Indian Ministry of External Affairs earmarked $ 13.9 million in fiscal 2020-21, for the development of Chabahar Port. 
• One of the key projects that were of keen interest to India and Iran was the linking of Chabahar Port to the Zaranj-Delaram Highway in Afghanistan. This is a 215 km long highway that was already built in Afghanistan through assistance provided by India. However, the railway line deal was yet to be finalized. As per recent newspaper reports in India, Iran had reportedly dropped India from the plan. The claims made in media were officially refuted by both Iran and the Indian Ministry of External Affairs (MEA).

How Many Major Ports are there in India?
As per data from the Ministry of Shipping, 95% of India’s trade by volume is done through maritime transport. Currently, India has 12 major ports. 

• Mumbai Port Trust 
• Deendayal Port Trust also called Kandla Port Trust – Located in Gujarat 
• Jawaharlal Nehru Port Trust (JNPT), Navi Mumbai – Largest Container Port in India 
• New Mangalore Port Trust – Located in Karnataka 
• Kochi Port Trust 
• Dr. Shyama Prasad Mukherjee Port Trust also called as Kolkata Port Trust 
• Paradip Port Trust – Located in Orissa 
• Visakhapatnam Port Trust 
• Mormugao Port Trust – Located in Goa 
• Chennai Port 
• V.O. Chidambaranar Port Trust formerly known as Tuticorin Port Trust – Located in Tamil Nadu 
• Kamarajar Port Limited – Earlier known as Ennore Port – Located 18 km north of Chennai. 

The Government of India plans to modernize all the ports of India through the Sagarmala Project.