Banking, Financial and Economic Awareness
1. Impact of crude oil price rise assessed and emergency measures reviewed
- After the killing of Iranian commander General Qassem Soleimani, in a drone strike by the US, the crisis in the West Asian region may grow rapidly and crude oil prices may rise. So, the government held a high-level meeting to assess the impact of price rise and review contingency measures.
- At the meeting, short-term and long-term measures to alternative import options, agreement with the US, and talks with Russia for crude oil supplies were reviewed.
- These measures are needed for diversification of India's oil sources and reduction in India's dependence on the West Asian region for crude oil supply.
- India imports 80% of its total crude oil requirements, and Iran is one of the top crude oil suppliers to India.
- In April-September of FY’20, India's crude oil imports from the OPEC countries have been lowered from 85.4 % in FY’17 to 75.4 %.
- An increase in oil price will have a negative impact on India's growth and Current Account Deficit (CAD).
2. Adani Ports and Special Economic Zone Ltd (APSEZ) to buy Krishnapatnam Port
- APSEZ will buy a 75 % stake in Krishnapatnam Port Company Ltd from CVR Group for ₹13,500 crores.
- Krishnapatnam Port Company Ltd currently controls Krishnapatnam port in Nellore district of Andhra Pradesh.
- Earlier, APSEZ had acquired Dharma port and Katupali port in 2014 and 2016, respectively.
- APSEZ is also developing a container transshipment port and a container terminal at Vizhinjam (Kerala) and Yangon (Myanmar).
- Dharma port is located in Odisha and Katupali port is located in Tamil Nadu.
- Krishnapatnam Port is a deepwater port that became operational in 2008.
3. Electricity demand at Indian Energy Exchange (IEX) rises
- In December 2019, electricity demand at IEX had risen. But, the average clearing price remained lowered.
- An increase in demand from states in the north region and states in the south region caused an increase in traded volume at IEX.
- Indian Energy Exchange (IEX):
- IEX and Power Exchange of India Limited (PXIL) are two power exchanges that are operational in India.
- IEX was founded in 2008.
- Central Electricity Regulatory Commission (CERC) approves and regulates IEX.
4. Arogya Sanjeevani, a standard health cover policy introduced
- IRDAI has introduced Arogya Sanjeevani, a standard health cover policy that all general and standalone health insurers must mandatorily offer from April 1, 2020.
- 22 diseases and treatments will be covered under the standard policy and critical illness covers or benefit-based covers will not be combined with it.
- The standard health cover product will have a term of one year, a minimum sum insured limit of Rs 1 lakh and the maximum sum insured limit of Rs 5 lakh.
- It will also have a minimum entry age of 18 years, lifelong renewability, no exit age and the same premium all over India.
Multiple Choice Questions (MCQs)
1. What percentage of India’s total crude oil requirements are currently imported?
2. Which of the following ports was recently bought by Adani Ports and Special Economic Zone Ltd (APSEZ)?
3. Indian Energy Exchange (IEX) was founded in
4. How many diseases and treatments will be covered under newly introduced standard health cover policy?