In Today’s News:
- RBI schedules ‘Operation Twist’ for July 2.
- India, Bhutan sign pact for first joint Hydel Project.
- DCGI nod for human trials of ‘Covaxin’.
- Portal for Street Vendors’ Loan Scheme launched.
1. RBI schedules ‘Operation Twist’ for July 2
News Summary
The Reserve Bank of India has scheduled bond sale and auction of Rs.10,000 crore each on July 2. This operation is known as Operation Twist. The RBI will purchase long term government bonds and sell short term securities.
Prelims GS – Economic Development
Operation Twist:
- ‘Operation Twist’ is the name given to a US Federal Reserve Monetary Policy operations.
- This term Operation Twist was introduced in India by the RBI last December 2019.
- Operation Twist refers to the simultaneous buying and selling of Government securities under Open Market Operations. (OMO)
Open Market Operations:
- The RBI manages the liquidity conditions, rupee strength through a tool called Open Market Operations(OMO).
- OMO is nothing but the sale and purchase of Government Securities.
- If the liquidity conditions are tight, RBI will purchase Government Securities. This will release liquidity into the market.
- If there is excess liquidity in the market, then RBI will sell Government Securities. This will suck out rupee liquidity.
Mini Insights
Mains GS3 – Economic Development
Advantages of ‘Operation Twist’:
- It will lower long term yields and will help the Government in borrowing funds at a lower rate.
- Lower long term yield will also boost the economy.
- Loans will become less expensive and hence people can buy cars, homes, etc.
- This will ensure liquidity is there in the market.
- It will kickstart investment and revive the economy.
2. India, Bhutan sign pact for first joint hydel Project.
News Summary
For the first time, Bhutan is constructing a hydel Project in the Eastern region of Bhutan as a 50:50 joint venture with India. Usually, India – Bhutan constructs hydropower projects as a government-to-government agreement. India and Bhutan Foreign/External Affairs Ministers signed the project’s “Concession Agreement “. Under the agreement, India – Bhutan has constructed 4 hydropower projects in the last 30 years and another two are under construction.
Mini Insights
Mains GS2 – International Relations
India- Bhutan Joint Hydel Power Project:
- India and Bhutan have agreed to construct a 600 MW Kholongchhu hydel power project as a joint venture.
- This is a milestone in the ties of India and Bhutan.
- This is a part of India’s commitment to helping Bhutan in creating a 10,000MW of installed capacity by 2020.
- Hydropower projects between India and Bhutan are the visible symbols of mutually beneficial bilateral cooperation between the two countries of India and Bhutan.
- These are some projects which are in line with India’s “Neighbourhood First Policy” and helps in promoting India as a big brother to these nations.
Also, refer to India-Bhutan MOU on Environmental Cooperation on 4th June 2020.
3. DCGI nod for human trials of ‘Covaxin’
News Summary
The Drug Controller General of India (DCGI) has permitted human trials of ‘Covaxin’, the first vaccine introduced for COVID-19. This vaccine was developed by Bharat Biotech in collaboration with ICMR and National Institute of Virology.
Prelims GS – Polity
DCGI and CDSCO:
Refer to the prelims content of DCGI and CDSCO on 22nd June 2020.
4. Portal for Street Vendors’ Loan Scheme launched
News Summary
The Union Ministry for Housing and Urban Affairs launched the portal pmsvanidhi.mohua.gov.in. This portal will provide an end-to-end IT interface to users who are availing benefits under the Pradhan Mantri Street Vendors’ AtmaNirbhar Nidhi (PM SVANidhi) scheme.
Prelims GS – Economic Development
PM Street Vendors’ AtmaNirbhar Nidhi scheme:
Refer Prelims content of scheme on 2nd June 2020.
Mini Insights
Mains GS3 – Economic Development
Benefits:
Refer Mains content of the scheme on 2nd June 2020.
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