17 October 2023

DAILY CURRENT AFFAIRS ANALYSIS

1 – About Automatic Insolvency of Go First Airlines: GS II – Government Policies and Interventions

Context:

The reason for the prominence of a particular topic in the news is as follows:

• In light of Go First’s decision to initiate voluntary insolvency proceedings, lessors continue to encounter challenges in reclaiming possession of their aircraft from the beleaguered carrier.

The following are important details:

• India has ratified the Convention on International Interests in Mobile Equipment and its associated protocol, often recognised as the Cape Town Convention (CTC).
• According to the Convention, lessors have the ability to pursue the deregistration and export of aircraft without requiring the airline’s consent by utilising their Irrevocable Deregistration and Export Request Authorizations (IDERAs).
• Nevertheless, the complete integration of the CTC rules into India’s legal system has not yet been achieved. As a result, in situations where conflicts arise between the CTC requirements and Indian legislation, the latter typically take precedence.
• In a recent notification released by the Ministry of Corporate Affairs (MCA), the automatic ban on assets under The Insolvency and Bankruptcy Code (IBC) would not be applied to aeroplanes, aircraft engines, airframes, and helicopters
• This implies that in the event of an airline declaring insolvency, the regulations outlined in the IBC will no longer impede lessors from reclaiming aircraft.
• The aviation market in India has suffered a blow to its reputation among global aircraft financiers and lessors due to the inability of lessors to repossess their planes from Go First.
• India has been subjected to a downgrade by the Aviation Working Group (AWG), a development that may result in increased risk premiums for other carriers operating within the country.
• The aircraft Working Group (AWG) is a globally recognised non-profit organisation that consists of prominent aircraft manufacturers, leasing businesses, and financial institutions.
• The organisation is widely recognised as a global regulatory entity overseeing the aviation financing and leasing sector.
• The increased lease rates have a significant impact on the expenses incurred by airlines, which are already operating within a business landscape characterised by fluctuating fuel prices and intense rivalry, leading to narrow profit margins.
• It is crucial for India to cultivate a positive perception of the Indian aviation market among international aircraft leasing companies, ensuring that they are not deterred by potential uncertainties in the legal framework and operational conditions.
• In accordance with its strategic objectives for the nation’s civil aviation industry, the government aims to position India as a prominent centre for aircraft leasing.
• The development of the ecosystem in India would require adherence to international civil aviation rules, protocols, and norms, ensuring alignment and consistency.
• The Insolvency and Bankruptcy Code (IBC) refers to a legislative framework enacted in India with the objective of addressing insolvency and bankruptcy issues.
• The year 2016 witnessed the introduction of the Insolvency and Bankruptcy Code (IBC), which aimed to revamp the corporate distress resolution framework in India. This legislation sought to integrate existing rules and establish a time-bound structure that shifted the power from debtors to creditors.

When insolvency is initiated in accordance with the Insolvency and Bankruptcy Code (IBC), there may be two potential outcomes:

• The topic of discussion is resolution.
• The process of liquidation refers to the conversion of assets into cash in order to settle outstanding

The Cape Town Convention and its impact on India:

• The CTC (Contractual Termination Clause) and its associated 2001 protocol have been designed with the objective of safeguarding the interests of lessors in the event of lessee defaults.
• According to the Cape Town Convention (CTC), the lessor has the authority to pursue the de-registration and export of an aircraft without requiring the airline’s consent by utilising the International Registry of Mobile Assets (IDERA).
• The airline does not possess the authority to cancel the lessor’s IDERA (Irrevocable Deregistration and Export Request Authorization) rights without obtaining the consent of the lessor.
• In essence, the primary aim is to streamline and enhance the effectiveness of aircraft leasing operations, all the while ensuring lessors’ peace of mind regarding the potential for protracted grounding of their assets as a result of legal complications.
• The expeditious deregistration procedure enables lessors to reclaim aircraft and then lease them to alternative operators, thereby mitigating potential financial losses associated with protracted legal disputes.
• This phenomenon leads lessors to exhibit readiness and willingness to engage in aircraft leasing activities inside countries that diligently adhere to the CTC rules both in their literal interpretation and in their underlying principles.
• India’s accession to the treaty on the Transfer of Convicted Persons (CTC) occurred in 2008. However, the process of integrating the treaty and its protocol into India’s legal system has been ongoing.
• The most recent revisions to India’s aviation regulations pertaining to the Cape Town Convention (CTC) occurred in 2018. These amendments aimed to streamline the processes of aircraft deregistration and export by implementing International Registry of Mobile Assets (IDERA) procedures.
• The government’s new notification aims to address the highly disputed matter resulting from the absence of Indian legislation prioritising the provisions of the CTC.

Source The Hindu

2 – Nobel Prize for Literature in 2023: GS II – International Issues

Context:

• The Nobel Prize for Literature, an esteemed accolade awarded annually, holds great importance in recognising outstanding literary achievements. This paper aims to explore the significance of the Nobel Prize for Literature in the context of the anticipated 2023 award. Historical
• The recent development in the field of literature pertains to the announcement of the recipient of the prestigious Nobel Prize for Literature in 2023. Norwegian writer Jon Olav Fosse has been honoured with this esteemed accolade for his remarkable contributions in the form of inventive plays and prose that effectively articulate the ineffable.

The following are the key details:

• Fosse’s literary works are composed in Norwegian Nynorsk, which is recognised as the less prevalent of the two official variants of the Norwegian language.
• Fosse, who was born in 1959, initially embarked on a career as a novelist before transitioning to playwriting in his thirties.
• He subsequently achieved recognition as one of the most frequently staged playwrights in Norway, and is indeed regarded as one of the most frequently staged living European playwrights.
• The author’s literary works have been translated into a multitude of languages, surpassing a total of 40 translations.
• Although Fosse has garnered significant acclaim throughout Europe over an extended period, his level of popularity in the United Kingdom and the United States is rather limited, thereby affecting his exposure among the broader English-speaking sphere, including regions such as India.

Source The Hindu

3 – Nagorno-Karabakh conflict: GS II – International Issues

Context:

• The exodus of a large number of Armenians from Nagorno-Karabakh subsequent to the complete reestablishment of Azerbaijani military authority over the secessionist territory has been widely reported in the news.

The following are important details:

• The ongoing dispute between Armenia and Azerbaijan concerning the Nagorno-Karabakh region has been categorised as one of the enduring “frozen conflicts” on the global stage.
• The commencement of this conflict transpired when Azerbaijan initiated a military offensive, resulting in the declaration of triumph over the rebel region of Nagorno-Karabakh within a span of 24 hours.
• The provincial authorities have recently announced that the ethnic Armenian enclave is scheduled to undergo dissolution on January 1, 2024.
• The recent changes in the South Caucasus region have significant ramifications for India, particularly in terms of connectivity and diplomatic relations with the region, despite the geographical distance between the two.

The protracted dispute over the course of several decades:

• The subject of inquiry pertains to the geographical characteristics and demographic composition of a given region.
• Nagorno-Karabakh is a geographically elevated area that holds official recognition as a constituent part of Azerbaijan.
• However, the population of this region amounts to over 120,000 individuals, with a significant majority being of Armenian descent. Consequently, there exists a strong correlation between the local community and Armenia in terms of cultural, social, and historical connections.
• Nagorno-Karabakh is an area within Azerbaijan that is predominantly inhabited by individuals of Armenian ethnicity.
• The Armenian population predominantly adheres to Christianity, whilst the Azeri population primarily practises Islam.
• The enclave maintains a connection with Armenia via the Lachin Corridor, spanning a distance of 5 kilometres.

The socio-political condition during the period of the Union of Soviet Socialist Republics (USSR):

• In the transition from Czarist Russia to the Soviet Union in 1921, Nagorno-Karabakh became a constituent territory of the Azerbaijan SSR (Soviet Socialist Republic).
• In 1923, the Union of Soviet Socialist Republics (USSR) formed the Nagorno-Karabakh Autonomous Oblast, which was predominantly inhabited by an Armenian population comprising 95 percent of the total. This region was founded within the Azerbaijan Soviet Socialist Republic.
• In the wake of the dissolution of the Soviet Union, the initial phase of tensions surrounding Nagorno-Karabakh emerged in 1988. During this period, the regional legislature of Nagorno-Karabakh adopted a resolution expressing its desire to unite with Armenia, despite its geographical location within the borders of Azerbaijan.
• Following the dissolution of the Soviet Union in 1991 and the subsequent establishment of statehood for Armenia and Azerbaijan, Nagorno-Karabakh formally proclaimed its independence.
• Subsequently, a conflict ensued between Armenia and Azerbaijan, resulting in the occupation of Nagorno-Karabakh by Armenia and the annexation of approximately 20% of Azerbaijan’s territorial expanse by Armenian forces by 1993.
• The status following the dissolution of the Union of Soviet Socialist Republics (USSR) was characterised by significant political, economic, and social transformations.
• The Bishkek Protocol, a ceasefire agreement, was arranged by Russia in the year 1994.
• As a result, Nagorno-Karabakh achieved de facto independence, establishing a self-proclaimed government. However, it remains significantly dependent on Armenia for economic, political, and military support.

The most recent armed conflict:

• In the year 2020, hostilities between Azerbaijan and Armenia were reignited, resulting in a state of armed conflict.
• On this occasion, Azerbaijan successfully regained control of the land in the vicinity of Nagorno-Karabakh.
• Once again, Russia has facilitated a diplomatic agreement and deployed peacekeeping troops along the Lachin Corridor.
• In the year 2022, the Lachin Corridor had a blockade initiated by Azerbaijan, resulting in significant scarcities of vital commodities including as food, fuel, and water within the region of Nagorno-Karabakh.
• Azerbaijan initiated a military operation with the objective of countering terrorism in the Nagorno-Karabakh region, thereafter asserting that it had successfully reestablished complete authority over the area.

India’s stance:

• India has consistently refrained from aligning itself with any particular faction in the conflict.
• The diplomatic relations between two countries, namely Armenia and [country], have been established and maintained for a certain period of time.
• The historical connections between India and Armenia can be traced back for several millennia.
• During the invasion of India in 2000 BC led by the Assyrian warrior queen Semiramis, it is documented that a contingent of Armenians joined her forces.
• Indian settlements in Armenia were founded in 149 BC by two kings, Krishna and Ganesh, who sought refuge from Kannauj.
• The initial compendium detailing Indian cities in the Armenian language was authored during the 12th century.
• During the reign of the Mughal Empire, a limited number of Armenian traders had arrived in Agra.
• Emperor Akbar, reputed to have been married to Mariam Zamani Begum, an Armenian woman, bestowed upon her and her community various privileges and a notable degree of religious autonomy.
• During the 16th century, Armenian settlements became established in the cities of Kolkata, Chennai, Mumbai, and Agra.
• Presently, the vestigial group predominantly resides in Kolkata.
• Armenia has expressed its public endorsement of India’s stance regarding the resolution of the Kashmir issue by bilateral means. Additionally, Armenia extends its support towards India’s aspiration for a permanent seat in the expanded United Nations Security Council.
• The diplomatic relations between Azerbaijan and [User’s Country] have been established and maintained over a significant period of time. These ties encompass various aspects, including political, economic,
• On the contrary, the historical connections between India and Azerbaijan have been of a relatively modern kind.
• An instance of this is the Ateshgah fire temple, located near Baku, which is an architectural structure dating back to the 18th century. However, it possesses a far longer historical background and is adorned with wall inscriptions in Devanagari and Gurmukhi scripts.
• The existing evidence serves as a testament to the generous reception that Indian merchants travelling along the Silk Route to Europe received in Azerbaijani cities, including Baku and Ganja.
• In contemporary times, subsequent to the dissolution of the Soviet Union, the Republic of India acknowledged the sovereignty of Armenia and Azerbaijan and forged diplomatic ties.
• The geographical proximity of Azerbaijan to Pakistan has been regarded as a source of tension in their bilateral relations.
• To date, there has been no official visit conducted at the level of Head of State or Government between the nations of India and Azerbaijan.
• The Azerbaijan Soviet Socialist Republic had the honour of hosting esteemed individuals such as India’s Nobel laureate Rabindranath Tagore, former President Dr. S. Radhakrishnan (during his tenure as Vice President in 1956), and former Prime Minister Jawaharlal Nehru (during his visit in 1961).
• The strategic significance of the Armenia and Azerbaijan region stems from its geographical location, which serves as a crucial pathway for India’s communication with Russia and Europe. This connectivity is facilitated through Central Asia and Iran, making the region a key corridor.
• Armenia and Azerbaijan are both participants in the International North South Transport Corridor (INSTC), an initiative that India is very interested in fostering.
• India has expressed its support for Armenia’s proposition to incorporate Iran’s Chabahar port into the International North-South Transport Corridor (INSTC).
• The regional tensions have a direct influence on India’s strategic objective of establishing alternative routes to Europe and Russia, through Pakistan.

Source The Hindu

4 – Bekal Fort: GS I – Indian Culture

Context:

• The primary focus of this news article is the establishment of the first public sector caravan park in Kerala, which aims to attract a larger number of tourists to the renowned Bekal Fort.

The following are important details:

• The Kerala Tourism Development Corporation (KTDC) has been designated to undertake the development of a caravan park and camp shelter at Bekal. This location has additionally been chosen by the Tourism Department for development in the realm of film tourism.
• This project aims to exhibit prominent filming locations inside the State that have been featured in successful films, with the intention of enticing tourists.
• In addition, the Kerala Tourism Development Corporation (KTDC) has presented ideas for the establishment of caravan parks in Ponmudi in Thiruvananthapuram and Bolgatty Palace in Kochi.
• The establishment of the caravan park at Bekal will mark a significant milestone as the inaugural public sector park in the State.
• Currently, there exists a one caravan park inside the State, which is managed by a private entity located in Wagamon.

The subject of discussion pertains to Bekal Fort:

• The construction of Bekal Fort can be attributed to Shivappa Nayaka of Keladi, who oversaw its development in the year 1650 AD. This mediaeval fort is situated in the region of Bekal.
• The fort in question holds the distinction of being the largest fort in the state of Kerala.
• The fort seems to arise from the ocean.
• Approximately 75% of its external surface area is in direct contact with water.
• The Bekal fort did not serve as an administrative hub and did not encompass any palatial or mansion-like structures.
• One notable characteristic of the structure is the inclusion of a water-tank, magazine, and a series of steps that ascend to an observation tower, all of which were constructed under the supervision of Tipu Sultan.
• The fort’s entrance, characterised by a zigzag design, together with the presence of surrounding trenches, serves as a manifestation of its defensive strategy.
• The presence of apertures strategically placed on the exterior walls of the fortification serves the purpose of enhancing its defensive capabilities against maritime assaults.
• The architectural design of the structure has resemblance to the Thalassery Fort and the St. Angelo Fort in Kannur, both of which were constructed by the Dutch.

Source The Hindu

5 – Freedom House Report: GS II – Government Policies and Interventions

Context:

• The recent news highlights a loss in global Internet freedom for the 13th consecutive year, as reported by Freedom House, a non-profit organisation based in Washington.
• The present research encompasses the thirteenth iteration of a yearly investigation on the state of human rights in the digital realm, examining advancements that transpired from June 2022 to May 2023.
• The study assesses the level of Internet freedom across a total of 70 countries.
• The internet landscape pertaining to human rights has experienced a decline in 29 nations, while only 20 nations have exhibited a positive overall progress.
• The escalating utilisation of artificial intelligence by governments for the purposes of censorship and dissemination of disinformation has become a cause for concern.
• According to the research, Iran had the most significant increase in digital repression, characterised by the government’s actions to restrict Internet access, ban popular communication platforms like as WhatsApp and Instagram, and intensify surveillance measures, all with the aim of suppressing anti-government demonstrations.
• For the eighth consecutive year, China has been identified as the global leader in terms of having the most unfavourable environment for Internet freedom.
• Myanmar ranked as the second most restrictive country globally in terms of online freedom.

The intersection of electoral processes and digital repression:

• The paper additionally provided a comprehensive account of how elections served as a catalyst for the implementation of digital repression.
• During election seasons, numerous incumbent leaders engaged in the practise of criminalising wide-ranging forms of speech, restricting access to independent news platforms, and implementing further measures to manipulate the dissemination of information, all with the intention of influencing the outcome of the voting process in their own favour.

The current situation in India:

• The Indian government has implemented censorship measures, including the integration of automated systems, inside the legal framework of the nation.
• The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules necessitate the utilisation of AI-based moderation tools by major social media platforms for content categories that are widely defined, including:
• verbal expressions that possess the potential to weaken the stability of public order, compromise standards of decency and morality, or threaten the sovereignty, integrity, and security of the nation.
• The aforementioned content has been previously instructed to be removed by officials.
• The paper cautions about the negative consequences for Indian democracy, highlighting that the government’s increasing censorship measures are generating an imbalanced environment that suppresses dissent and impartial journalism concerning the governing party, coinciding with the upcoming general elections in 2024.

India was also included in the roster of nations that:

• Websites that are restricted from access because to their hosting of political, social, or religious content.
• Engaged in intentional disruption of information and communication technology networks.
• used pro-government commentators in order to control online discourse, and
• Engaged in targeted cyber operations against individuals or organisations critical of the government or advocating for human rights.
• India received a score of 50 on a scale of 1 to 100, where a higher number indicates greater digital freedom. In contrast, Iceland achieved the highest level of Internet freedom with a score of 94.
• The assessment methods employed in this study encompass a range of approaches and techniques used to assess and analyse the data collected.
• The report assesses nations based on five distinct techniques of censorship.
• The imposition of limitations on internet connectivity.
• The phenomenon of blocking individuals on social media networks.
• The topic of discussion encompasses website blocking and VPN blocks.
• The act of forcibly removing content
• India participated in all of the aforementioned activities, with the exception of VPN blocking.

Source The Hindu