August 5, 2020

MOST IMPORTANT ARTICLES OF THE

DAY – 05/08/2020
Trump bars H-1B visa holders from federal jobs
The Hindu, August 5

President Donald Trump has signed an executive order preventing federal agencies from contracting or
subcontracting foreign workers — mainly those on H-1B visas.

The move comes over a month after the Trump administration on June 23 suspended the H-1B visas,
along with other types of foreign work visas, until the end of 2020 to protect American workers in a
crucial election year. The new restrictions took effect from June 24.

Mr. Trump’s order follows an announcement by the federally-owned Tennessee Valley Authority (TVA)
that it would outsource 20% of its technology jobs to companies based in foreign countries.

Speaking to reporters after signing the order on Monday, Mr. Trump said TVA’s action could cause more
than 200 highly-skilled American tech workers in Tennessee to lose their jobs to low-wage, foreign
workers hired on temporary work visas. He said his administration will not tolerate firing of hardworking
Americans in pursuit of cheap foreign labour.

Outsourcing hundreds of workers is especially detrimental in the middle of a pandemic, which has
already cost millions of Americans their jobs, the White House said in a statement.

SC directs States to provide support to senior

citizens
The Hindu, August 5

The Supreme Court on Tuesday directed the States to provide care, support and priority medical
treatment for senior citizens, especially those living alone or quarantined, amid the pandemic.

A Bench led by Justice Ashok Bhushan ordered that the governments had to respond promptly to the
needs of senior citizens and ensure that they did not suffer financially during COVID-19. The elderly
should get their pension on time, it said.

“All old-age people who are eligible for pension should be regularly paid pension and those identified
older people, should be provided necessary medicines, masks, sanitisers and other essential goods by
respective States,” the court ordered.

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Senior advocate Ashwani Kumar, who moved the court, said many elderly persons were battling
loneliness and depression. The lockdown and social isolation imposed had left many of them in the grip
of anxiety, Mr. Kumar, a former Union Law Minister, said.

The court said senior citizens should be given priority in government hospital admissions during the
pandemic. The Bench directed that caregivers in old-age homes should wear personal protection
equipment (PPE) and follow proper sanitation procedures. The court agreed to take up the case after
four weeks.

SC reserves orders in lawyer case

The Hindu, August 5

The Supreme Court on Tuesday reserved for orders a decade-old contempt case against noted civil
rights lawyer Prashant Bhushan, whose office said he refused to apologise but has agreed to issue a
statement that his remarks about judicial “corruption” in an interview to Tehelka magazine in 2009, was
not meant to hurt judges’ families or tarnish the judiciary.

A two-page judicial order published later in the day said the court was yet to receive the
“explanation/apology” “submitted” by Mr. Bhushan and Tarun Tejpal, the then editor-in-chief of
Tehelka.

Post explanation

The three-judge Bench led by Justice Arun Mishra said it would hear the contempt case if “we do not
accept the explanation/apology”.

The flow of events on Tuesday started with a surprise when Justice Mishra asked senior advocate Rajeev
Dhavan, appearing for Mr. Bhushan, to suggest a “solution” in the case.

“You [Mr. Bhushan] may have crossed the thin line between freedom of speech and contempt. But this
system belongs to you... Can you [to Mr. Dhavan] suggest some solution to avoid this rigmarole? You
can solve it. You have to save the grace of this system because it belongs to you all... You suggest to us a
solution,” Justice Mishra asked.

The interaction between Justice Mishra and Mr. Dhavan happened in the brief moments when the
virtual court proceedings was available on the TV screen in the media room situated inside the Supreme
Court annexe building. Presspersons saw Mr. Dhavan being connected on his mobile phone before the
screen went blank. The rest of the hearing was done away from the public eye.

A communication released by Mr. Bhushan’s office later in the day filled in that the judges heard Mr.
Dhavan and senior advocate Kapil Sibal, for Mr. Tejpal, on a WhatsApp call.

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During this interaction, Mr. Bhushan refused to apologise, and said the word “corruption” was used in
the interview in a wide sense to mean “lack of propriety”. He did not intend to mean the judiciary was
financially corrupt.

“If what I have said caused hurt to any of them or to their families in any way, I regret the same,” Mr.
Bhushan’s office communication quoted from a statement he has agreed to issue.

Plea for full hearing

The communication went on to say that the judges again assembled in the afternoon and “Justice
Mishra indicated that he may pass an order holding that any statement of corruption in the judiciary
would amount to per se contempt”.

Mr. Dhavan responded that the court should first hear the parties fully on facts and law. It was after this
that the court reserved the case for orders.

Another case

A suo motu contempt case instituted against Mr. Bhushan this year is listed before the same Bench on
August 5.

On June 22, the Bench had initiated suo motu contempt proceedings against Mr. Bhushan for his tweets
on the “role” of the apex court in the “last six years” and about a photograph of Chief Justice of India
Sharad A. Bobde on a motorbike. The court had observed in the order that the tweets undermined the
dignity of the Supreme Court and the office of the Chief Justice in the public eye.

Mr. Bhushan has replied that an expression of an opinion or bonafide anguish, however unpalatable or
outspoken, does not amount to contempt by scandalising the court.

Veteran journalists N. Ram and Arun Shourie, along with Mr. Bhushan, have filed a separate writ petition
challenging “scandalising the court” as an “incurable vague” ground to initiate contempt in a democracy.
They have said it may affect the rights to dissent and free speech.

Numbers of rapid antigen tests go up

The Hindu, August 5

Rapid Antigen Tests (RAT) now made up 25%-30% of the tests that were being conducted in India, Indian
Council of Medical Research (ICMR) Director-General Balram Bhargava said at a press conference on
Tuesday.

According to the latest testing figures, the ICMR said that it had tested nearly 6.6 lakh samples in a single
day and, overall, India had tested over 20 million samples. The agency, however, has not provided a
break up of how many of these tests were RAT, and Dr. Bhargava’s statement is the first indication by
the agency of the growing importance of this test.

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Rapid Antigen Tests are quick and are said to be very reliable in confirming if someone has tested
positive for the virus. However, it has a low sensitivity or that it can also miss — sometimes as many as
50% — of those who may be carrying the infection. Therefore, the ICMR advisory has been to retest all
those who test negative for the test and those who manifest symptoms.

Critics have pointed out that not retesting enough negatives, as per the ICMR guidelines, will lead to
several asymptomatic infections being undetected, and whet the spread of the infection.

“When we started antigen tests, they were about 5%-6% of the total tests and they are constantly rising
to about 25%-30%,” Dr. Bhargava said.

“It takes about five days for fever-like symptoms to manifest and there’s a big chance that in that
period, both RT-PCR and antigen tests may miss detecting the virus. The same goes for asymptomatics.
In that sense, both are similar for finding a positive case. States have been told to use an intelligent and
calibrated testing policy depending on which area needs more testing,” he said.

Army to convene selection board for women

personnel
The Hindu, August 5

After receiving the formal Government Sanction Letter (GSL) for grant of Permanent Commission (PC) to
women officers, the Army headquarters is in the process of convening a special selection board for
screening women officers for grant of PC.

“Towards this end, detailed administrative instructions have been issued to all affected women officers,
giving out guidelines for submission of applications for consideration by the board,” the Army said in a
statement on Tuesday.

Women officers who joined the Army through the Women Special Entry Scheme (WSES) and Short
Service Commission Women (SSCW), are being considered.

Submission of papers

They have all been instructed to submit their application forms, option certificate and other related
documents to the Army headquarters not later than August 31, it stated.

“Specimen formats and detailed checklists have been included in the administrative instructions to
facilitate correct documentation,” the Army said, adding the selection board will be scheduled
immediately after receipt and verification of applications.

On July 23, the Defence Ministry issued the GSL specifying grant of PC to women officers in all streams in
which they presently serve — Army Air Defence, Signals, Engineers, Army Aviation, Electronics and

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Mechanical Engineers, Army Service Corps, Army Ordnance Corps and Intelligence Corps in addition to
the existing streams of Judge and Advocate General and Army Educational Corps.

The orders follow the Supreme Court verdict in February, in which it directed the government that
women officers in the Army be granted PC and command postings in all services other than combat.

Spain’s former king flees country

The Hindu, August 5

Spain’s former king Juan Carlos, at the centre of an alleged $100-million corruption scandal, has
reportedly fled to the Dominican Republic after his shock announcement that he was going into exile.

The 82-year-old revealed on Monday that he had taken the decision to leave Spain to help his son, the
current King Felipe VI, “exercise his responsibilities”.

The letter, published on the royal palace’s website, did not mention where the former king would go,
nor when exactly he would leave the country. But on Tuesday, daily newspaper ABC reported that he
left Spain on Sunday and flew to the Dominican Republic via Portugal.

The La Vanguardia and El Mundo dailies similarly said he planned to stay with friends in the Caribbean
country, but online newspaper El Confidencial said he could be in Portugal, where he spent part of his
youth, or in France or Italy.

Asked by AFP about the reports, a royal palace spokesman refused to give any information about Juan
Carlos’s whereabouts. “The only information we have is the information which was published on the
website of the royal palace yesterday. It is the only information which we have,” he said.

The ex-king’s lawyer, Javier Sanchez-Junco, issued a statement on Monday saying his client was not
trying to escape justice by going into exile and would remain available to prosecutors.

Popular for decades

The former head of state has been under a cloud since various media reported that he allegedly
received funds from Saudi Arabia and probes are now under way in both Switzerland and Spain.

Spain’s Supreme Court announced in June an investigation to determine the legal responsibility of the
ex-monarch — but only for acts committed after his abdication in 2014, because of the immunity he
holds.

The suspicions centre on $100 millionallegedly paid secretly into a Swiss bank account in 2008.

Socialist Prime Minister Pedro Sanchez spoke out in July, saying “the entire Spanish population are
receiving disturbing information which is troubling for us all, including me”.

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He ascended the throne in 1975 on the death of the fascist dictator Francisco Franco and ruled for 38
years before abdicating in favour of his son Felipe VI in June 2014. He was a popular figure for decades,
playing a key role in the democratic transition from the Franco dictatorship which ruled Spain from
1939-1975.

HDFC Bank names Jagdishan successor to Puri

as MD & CEO
The Hindu, August 5

HDFC Bank on Tuesday named veteran Sashidhar Jagdishan as the new MD and CEO to succeed Aditya
Puri.

Mr. Jagdishan, whose appointment was approved by the RBI, would take charge on October 27 and hold
office for a period of three years, India’s largest private sector bank said in a filing.

Having joined as a manager in the finance function in 1996, Mr. Jagdishan rose to become the bank’s
chief financial officer in 2008.

‘Positive for bank’

“His appointment is positive for the bank as he has 24 years of experience in the bank,” said Jaikishan
Parmar, research analyst, Angel Broking. “He brings predictability and there will be a smooth running of
the bank. The top management will find it easier to work with him... we have to see his style of
functioning in the coming months,” he added.

Mr. Jagdishan currently oversees several functions at the group level including finance and is the
strategic change agent.

“He has played a critical role in supporting the growth trajectory of the bank,” the bank said in a
statement. “He has led the finance function and played a pivotal role in aligning the organisation in
achieving the strategic objectives over the years.”

Prior to joining HDFC Bank, he worked at Deutsche Bank AG. A science graduate, he is a chartered
accountant and also holds a master’s degree from the University of Sheffield, U.K..

“I fully recognise that Mr. Puri’s are huge shoes to fill,” said Mr. Jagdishan. “I’ll leave no stone unturned
to carry forward the rich legacy.”

Mr. Puri, widely credited with building the bank from scratch, retires in October.

The bank’s shares gained 3.9%, or ₹39.45, to close at ₹1,041.40 on the BSE.

Vivo set to end IPL association

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The Hindu, August 5

The Board of Control for Cricket in India (BCCI) has been forced into a corner with IPL title sponsor Vivo
set to end its association with the T20 league.

Following the border tension with China, Vivo — a Chinese mobile phone manufacturer — and the BCCI
have been on the verge of invoking force majeure and mutually agreeing to end the five-season contract
after just two editions.

Conference call

The Hindu understands that BCCI president Sourav Ganguly and secretary Jay Shah had a conference call
with Vivo representatives, with IPL chairman Brijesh Patel in attendance, on Tuesday.

Both parties are understood to have agreed to amicably terminate the agreement.

The BCCI had refrained from revisiting the IPL sponsorship deal during Sunday’s governing council
meeting.

This was followed by a public outcry over the league’s association with a Chinese company. However, a
BCCI insider claimed that Tuesday’s meeting was a fallout of Vivo’s demand to renegotiate the deal.

“They had reached out to the president and the secretary a while ago and sought a revision of the deal,
citing prevailing market conditions and public sentiment.

“Since they were demanding a substantial reduction in sponsorship for the 2020 edition, it was mutually
decided to look at options,” said the BCCI insider.

It is learnt that Vivo wanted “at least 30% reduction” in the amount for the forthcoming edition, to be
played in the UAE from September 19 to November 10.

In 2018, Vivo signed a five-edition deal worth ₹2,199 crore (approximately ₹440 crore per year) as title
sponsor.

If force majeure is invoked, it could absolve both parties from compensating the other for the
premature termination of the deal.

While no one from the BCCI was available for an official comment, a Vivo India spokesperson said the
company is “not commenting on the matter yet”.

Fresh tender for 2020?

A formal announcement on the separation is expected “very soon” so that the BCCI can invite fresh bids
“only for the 2020 edition”.

It is understood that a business conglomerate with close ties to an IPL franchise may explore extending
its association with the IPL.

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Theatre doyen Ebrahim Alkazi passes away

The Hindu, August 5

Theatre director Ebrahim Alkazi, who revolutionised Indian theatre and was the longest-serving director
of the National School of Drama, passed away on Tuesday here at the age of 94.

Alkazi was remembered for his contribution towards modern Indian theatre, including bringing in
technical aspects of the craft and making the NSD the premier training institute for theatre.

In his tenure as director of NSD from 1962 to 1977, he mentored students who went on to become great
actors, including Naseeruddin Shah and Om Puri.

Alkazi’s son, theatre director Feisal Alkazi, said he passed away on Tuesday afternoon after suffering a
massive heart attack. He had been admitted to Escorts Hospital on Sunday night, Mr. Feisal said.

Speaking about his father’s legacy, Mr. Feisal said: “Everybody remembers him as the father of Indian
theatre. He was the first person to bring regional language plays to NSD, he built a strong institutional
structure and brought Indian theatre to the world.”

Among the over 50 plays he directed were Girish Karnad’s Tughlaq and Dharamvir Bharati’s Andha Yug.

“NSD family deeply mourns the passing away of theatre legend, Padma Vibhushan Shri Ebrahim Alkazi,
ex-director of NSD from 1962-77. This is a great loss to the country and specially to the theatre world,”
NSD said in a tweet.

NSD Director In-charge Suresh Sharma said Alkazi, who founded the NSD Repertory Company, was not
only a renowned director, he was also a great administrator who would inspect students’ hostels and
teach classes, making his tenure as director “the NSD’s golden years”.

Condolences for Alkazi poured in on social media.

“Ebrahim Alkazi, doyen of Indian theatre, mentored and inspired generations of artists,” President Ram
Nath Kovind tweeted.

Prime Minister Narendra Modi said in a tweet that Alkazi would be remembered for making theatre
more popular and accessible across the country.

What US job curbs mean for Indian H1-B holders

The Indian Express, August 5

On Monday, US President Donald Trump signed an executive order barring federal agencies from hiring
H-1B visa holders and other foreign workers in place of US citizens or green card holders.

Who are given such visas?

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According to data from the US Department of Labor, of 65,000 new visa applications approved every
year, an average 1,800 to 2,000, or roughly 3%, are H-1B visas granted to workers employed by federal
agencies.

To keep costs in check, federal agencies in the US — and various other countries — either hire a large
number of foreign workers or outsource their back-end database updation and other jobs to business
process outsourcing firms from around the world. Such jobs in developed countries pay minimal wages,
which are not lucrative enough for employable individuals in these countries.

How will the new order impact Indian workers in the US?

Apart from workers hired by federal agencies, the executive order will also impact workers of Indian
companies that are on contract with federal agencies. Bigger federal agencies such as state-run banks
give the contract for supply and maintenance of their databases and other services to bigger Indian
companies such as Infosys, TCS, or Wipro.

In 2019, Infosys set up a US subsidiary to focus on winning servicing contracts from healthcare and other
related projects in the US and Canada. Beyond the US, the Australian federal government’s Services
Australia chose Infosys last November to “transform the entitlement calculation engine for the nation’s
welfare system”.

Calling the new executive order “ based on misperceptions, and misinformation”, industry body
Nasscom said that such a measure could slow down the recovery phase of the US as countries start
unlocking. “The order is particularly coming at a time when there is a huge shortage of STEM skills in the
US that workers on short-term non-immigrant visas like H-1B and L-1 help bridge,” Nasscom said in a
statement.

What does the new order say?

The executive order has called upon federal agencies to stop replacing US workers and green card
holders with H-1B visa holders or other foreign workers. President Trump has also asked the heads of
departments of all such agencies under the federal government to review the contracts they gave out in
the two previous financial years, and the performance of such contracts or subcontracts.

The heads of departments will undertake an audit of these contracts and subcontracts, and check
whether the jobs could have been performed by US workers, and whether opportunities for domestic
workers were impacted by such hiring.

What led to the order?

Ever since Trump became President in 2016, the US government had started moving towards a more
conservative work visa regime, alleging that Indian and Chinese IT companies had been sending workers
at very low cost, which hurt the prospects of skilled workers in the US.

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The immediate trigger for the executive order was an announcement by federally-owned Tennessee
Valley Authority that it would outsource 20% of its technology jobs to foreign countries.

This action, the White House said, could result in loss of jobs for up to 200 “highly-skilled American tech
workers in Tennessee”. It said this could also lead to possible leaking of sensitive user data and theft of
intellectual property, which in turn would be detrimental to national security.

In his new order, seen as an extension of an earlier order in which the entry of non-immigrant visa
workers had been banned until the end of 2020, Trump too has said outsourcing of jobs should be
avoided as far as possible.

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Crisis in the Dairy Sector – EXPLAINED

India has transformed from a country of acute milk shortage to the world’s leading milk producer. This
phenomenal success is attributed to a Government initiative known as Operation Flood (1970–
1996) and its intense focus on dairy development activities.

Over the past few decades, the Dairy sector has emerged as a lifeline of the rural economy in India.
However, given the high price elasticity of milk and milk products, the demand for milk is very sensitive
to price changes.

Covid-19 pandemic has severely affected the demand for milk, particularly in urban areas. This has
severely impacted the profitability of the dairy sector as an enterprise.

Given the importance of dairy sectors, for both farmers and consumers, there is a need for governments
at various levels to address this crisis and establish a holistic framework for the overall growth of the
sector.

Current Crisis in Dairy Sector

 Production of milk is subject to seasonal fluctuations — animals, particularly buffaloes, produce
more during winter-spring and less in the summer.

 In order to cope with this fluctuation, the farmers usually convert the surplus milk of the “flush”
season (winter) into skimmed milk powder (SMP) and ghee/butter for reconstitution in the
“lean” months (summer).

 The above balancing model is, however, being rendered dysfunctional by the demand
destruction caused in the post-Covid shutdown of hotels, restaurants, hostels, canteens and
mithai shops.

 Apart from this, bulk sale of milk has collapsed (as nearly no marriages and other social
functions taking place).

 This has slashed milk prices by Rs 10-13 per litre.

 Further, dairies have been accumulating powder and fat stocks through the summer and
monsoon months.

 This overstocking situation will worsen once production increases in the coming months with
improved fodder availability, calving of buffaloes and drop in temperature.

 This demand and supply mismatch has led to a crisis in the Dairy sector.

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Other Issues Ailing Dairy Sector
 Slowdown in Dairy Sector: Even as India’s milk output has more than doubled in the last 15
years, the growth has slumped to less than 3 % in recent years, raising cause for concern.

o The slowdown is attributed to the decline in investment in the dairy sector since the end
of the Operation Flood initiative.

 Lack of Budgetary Allocation: Dairy is currently the top-ranking commodity in India, with the
value of output almost equal to the combined output value of rice and wheat.

o Despite the importance of the dairy sector in overall GDP, it receives less government
budgeting than the agriculture sector.

 Informal Dairy Economy: The most basic feature of the Indian dairy sector is that it is still
predominantly unorganized. Of the total milk produced in India, only 18-20% is channelized via
the organized sector.

o The unorganised sector accounts for about 75% of the marketable surplus of milk. Due
to this, the unorganized sector is yet to participate in the modern processing
infrastructure.

 Poor Breeding Infrastructure and Genetics: The success of Indian dairy was mostly due to the
rising number of animals, not productivity.

o There are storages of breeding infrastructure and advanced breeding methods such as
artificial insemination, embryo transfer etc.

 Animal Feed and Fodder: There is an acute and ever-growing shortage of green fodder and
good quality feed.

 Lack of Cold Chain Infrastructure: There is a lack of required infrastructure of chilling plants and
bulk coolers to prevent contamination and spoilage at village level.

o Further, the existing chilling plants suffer due to shortage of electricity.

Way Forward
Short-Term Measure

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 The government should consider temporary procurement of milk, directly by the National Dairy
Development Board (NDDB).

o NDDB may create a buffer stock of processed dairy products like skimmed milk powder
(SMP) and butter.

 Also, state governments may consider distributing these dairy products in Mid-May Meal, when
schools reopen.

 By this way, the crisis in the dairy sector and nutritional security both can be addressed.

Long-Term Measures

 Increasing Productivity: There is a need to increase the productivity of animals, better health
care and breeding facilities and management of dairy animals. This can reduce the cost of milk
production.

o Also, milk production and productivity can be enhanced by ensuring the availability of
veterinary services, artificial insemination (AI), feed and farmer education.

o The Government and dairy industry can play a vital role in this direction.

 Augmenting Production, Processing and Marketing Infrastructure: If India has to emerge as a

dairy exporting country, it is imperative to develop proper production, processing and marketing
infrastructure, which is capable of meeting international quality requirements.

o Thus, there is a need for a comprehensive strategy for producing quality and safe dairy
products that should be formulated with suitable legal backup.

o Further, to address the infrastructure deficit in rural areas and address the power
shortage, there is a need to invest in solar powered dairy processing units.

o Also, there is a need to strengthen dairy cooperatives. In this pursuit, the government
should promote farmer producer organisations.

Conclusion
Demand for dairy products in India is likely to grow significantly in the coming years, driven by more
consumers, higher incomes and greater interest in nutrition. Further, the dairy industry is critical for
realising the goal of doubling the farmer’s income. Therefore, supply-demand balancing remains the
issue of utmost importance for the dairy sector.

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