THE CONTEXT: The Government has informed the parliament on July 20 that it has launched a Bad Bank with all the regulatory approvals in place.

Analysis

• The Finance Minister, in her speech on the Budget for the financial year 2021-22, had announced that an Asset Reconstruction Company Limited and Asset Management Company would be set up
• They will consolidate and take over the existing stressed debt and then manage and dispose of the assets to Alternate Investment Funds and other potential investors for eventual value realization.

ABOUT BAD BANK

• A bad bank is a financial entity set up to buy non-performing assets (NPAs), or bad loans, from banks.
• The aim of setting up a bad bank is to help ease the burden on banks by taking bad loans off their balance sheets and get them to lend again to customers without constraints.
• After the purchase of a bad loan from a bank, the bad bank may later try to restructure and sell the NPA to investors who might be interested in purchasing it.
• A bad bank makes a profit in its operations if it manages to sell the loan at a price higher than what it paid to acquire the loan from a commercial bank.
• However, generating profits is usually not the primary purpose of a bad bank the objective is to ease the burden on banks, holding a large pile of stressed assets, and to get them to lend more actively.
• Finance Minister in her Budget speech revived the idea of a ‘bad bank’ by stating that the Centre proposes to set up an asset reconstruction company to acquire bad loans from banks.
• In pursuance to this, the National Asset Reconstruction Company Limited (NARCL) has been set up by the government
• RBI is the regulator of Asset Reconstruction Companies and thus will regulate the NARCL also.

THE CONTEXT: The Government is implementing more than 40 skill development schemes across 20 Central Ministries/Departments, for providing a variety of skill development training programmes under the Skill India Mission.

Analysis

• Some of the major schemes are Pradhan Mantri Kaushal Vikash Yojana (PMKVY), National Apprenticeship Promotion Scheme (NAPS), Industrial Training Institutes (ITIs), fee based training by National Skill Development Corporation (NSDC) etc.
• Under PMKVY 2.0 scheme, training Centres takes all efforts to facilitate placements of certified candidates through multiple initiatives like Rojgaar Mela, Yuva Sampark and Aatmanirbhar Skilled Employees Employer Mapping (ASEEM) ’portal, etc.
• In PMKVY 3.0 facilitation of wage employment / self-employment / apprenticeship shall be provided to the certified candidates.
• Pradhan Mantri Kaushal Kendras shall act as nodal Centres at districts for providing self-employment support.

ABOUT SKILL INDIA MISSION

• Launched on 2015, SKILL INDIA MISSION aims to train over 40 crore people in India in different skills by 2022.
• The mission aims at vocational training and certification of Indian youth for a better livelihood and respect in the society.
• It is implemented by National Skill Development Corporation under the aegis of Ministry of Skill Development and Entrepreneurship.

SCHEMES & INITIATIVES UNDER SKILL INDIA MISSION

• Pradhan Mantri Kaushal Vikas Yojana (PMKVY): The scheme is implemented with the objective to enable a large number of Indian youth to take up industry-relevant skill training that will help them in securing a better livelihood. Individuals with prior learning experience or skills were also assessed and certified under Recognition of Prior Learning (RPL) category.
• Pradhan Mantri Kaushal Kendra (PMKK): These are state-of-the-art, visible and aspirational model training centers in every district of India, ensuring coverage of all the parliamentary constituencies. These model training centers are referred to as “Pradhan Mantri Kaushal Kendra” (PMKK). The PMKK program provides financial support in form of a soft loan up to INR 70 lakhs to create training infrastructure and complements the delivery of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY).
• India International Skill Centres (IISC): To bridge the global shortage of labour force in the coming years by reaping the demographic dividend of young Indian labour force, India International Skill Centre (IISC) has been set up to provide skill trainings and certification benchmarked to International Standards.
• National Apprenticeship Promotion Scheme (NAPS): NAPS was launched in August 2016 to promote the Apprenticeship in the country by providing financial incentives, technology and advocacy support. The government shares a specific percentage of basic training cost and/or stipend given to the apprentice.

THE CONTEXT: The Tripura government has taken initiatives to promote commercial cultivation of Agar trees.

Analysis

• It has set a target to achieve Rs 2,000 crore business from the sector in the next three years.
• The state has plans to export 75,000 kg of Agar chips and 1,500 kg of Agar oil in 2021-22 fiscal
• At present, over 50 lakh Agar trees are available in the state.
• The government has launched a draft ”Tripura Agar Wood Policy 2021”, and set a target of doubling the plantation by 2025.

ABOUT AGAR TREE

• The agar wood tree is native to Northeast India, Bangladesh, Bhutan and parts of Southeast Asia
• Agar (Aquilaria malaccensis) is an evergreen tree that grows in Tripura in abundance.
• This species has a huge potential of creating another economic revolution in Tripura after rubber, bamboo and other major forestry crops.
• Low input cost for management and growth and intercropping adaptation could make agar a preferred cash crop.
• Agar wood has been widely used as therapeutic perfumes, traditional medicine, religious purposes and aromatic food ingredient

THE CONTEXT: Aadhimalai Pazhangudiyinar Producer Company Limited and Snehakunja Trust are among the 10 awardees of the prestigious Equator Prize given by UNDP for their work in the field of conservation and biodiversity

Analysis

• The prize has been awarded for their exceptional achievement in showcasing local, innovative, nature-based solutions for tackling biodiversity loss and climate change and achieving their local development goals.
• Aadhimalai Pazhangudiyinar Producer Company Limited is a 1,700-member cooperative, managed and run entirely by indigenous people from the Nilgiri Biosphere Reserve in Tamil Nadu.
• It’s work in the past eight years has improved livelihood across 147 villages by processing and marketing a diverse range of forest produce and crops.
• Snehakunja Trust has protected sensitive wetland and coastal ecosystems in the Western Ghats and the Karnataka coast for 45 years with a focus on community-based restoration and conservation.
• This organization has supported hundreds of self-help groups and village forest committees to sustainably manage resources based on traditional knowledge, implement natural farming techniques, use clean energy, promote entrepreneurship, and provide community health services.

ABOUT UNDP EQUATOR PRIZE

• The Equator Prize, organized by the Equator Initiative within the United Nations Development Programme.
• It is awarded biennially to recognize outstanding community efforts to reduce poverty through the conservation and sustainable use of biodiversity.
• The Equator Prize celebrates, on international stage the local and indigenous groups across the tropics that demonstrate and exemplify sustainable development.
• The Equator Initiative is a multi-sector partnership led by UNDP that brings together the United Nations, governments, civil society, and grassroots organization to build the capacity of local efforts to reduce poverty  through the conservation and sustainable use of biodiversity.