Current Affairs 31st Aug 2024 for UPSC Prelims Exam

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Table of Contents

Cyclone Asna

Context: Recently Gujarat was hit by a Cyclone named Asna, which caused heavy rains in Kutch and Saurashtra regions.

About Cyclone Asna

Origin Of Cyclone Asna:
- It is an extraordinary meteorological event due to its unusual origin and development.
- Unlike other tropical cyclones, which form over warm ocean waters, Asna originated over the landmass of Rajasthan and then moved into the Arabian Sea.
According to IMD, only on three occasions (1976, 1964, and 1944), cyclones which originated over mainland India in August gathered strength as they entered the Arabian Sea.
Cyclone Asna is the first cyclone to form in August in the North Indian Ocean (NIO) region since 1981 and the first in the Arabian Sea since 1976.

Fact

Cyclones occur more frequently in the Bay of Bengal as compared to the Arabian Sea, with a ratio of approximately 4:1.
Cyclones are given different names in different regions of the world:
- Typhoons: in the China Sea and Pacific Ocean
- Hurricanes: Caribbean Sea and Atlantic Ocean
- Tornados: West Africa and southern USA
- Willy-willies: North-western Australia
- Tropical cyclones: Indian Ocean

Chevron Model

Context: ONGC Videsh (OVL) has requested special permission from the USA based on the Chevron Model to manage its oil projects in Venezuela.

What is the Chevron Model?

It allows foreign oil companies to operate in Venezuela despite U.S. sanctions.
Chevron was the first major U.S. company to use this route to operate in Venezuela under sanctions.
Mechanism:
- It involves receiving specific licences from the S. Office of Foreign Assets Control (OFAC) to bypass sanctions that restrict the use of American financial systems and services.
- OFAC License: This licence allows foreign companies significant control over the finances, operations, production, and marketing of oil from Venezuelan projects.
OVL’s Approach:
- It has requested an OFAC licence to operate its Venezuelan oil projects under the Chevron model.
- OVL holds a 40% stake in the San Cristobal project and 11% in Carabobo 1, with PDVSA being the majority shareholder in both.
  - PDVSA; Petróleos de Venezuela is Venezuela’s state-owned oil company.

ONGC Videsh Limited (OVL)

Ownership: a wholly-owned subsidiary of ONGC (Oil and Natural Gas Corporation Limited)
Administrative Control: Ministry of Petroleum & Natural Gas
Function: OVL explores, develops, and produces oil and gas in countries outside of India.
OVL was given Navratna status in 2023.

Net Borrowing Ceiling

Context:

The Supreme Court will review whether states have a legal right to exceed their borrowing limits set by the Centre and if such restrictions conflict with the RBI’s role as the public debt manager.
This issue was referred to a Constitution Bench earlier this year following a suit filed by the Kerala government.

What is the borrowing ceiling for States?

The normal net borrowing ceiling for states is fixed at 3 % of the Gross State Domestic Product (GSDP).
- For FY24, this is equivalent to Rs 8,59,988 crore as recommended by the 15th Finance Commission.
States are allocated an extra 5 % of GSDP borrowing capacity as a performance-based incentive for power sector reforms.
- Under this, States are eligible to borrow Rs 1.43 lakh crore on the recommendation of the power ministry for FY24.

Constitutional Provisions

Article 293: Gives power to states to borrow within India (not abroad) upon the security of the Consolidated Fund of the State.
- Centre may extend loans to the State or give a guarantee on the loans raised by it.
- However, States cannot raise any loan without the consent of the Centre in case of an outstanding debt.