1. In Thar desert, indigenous systems that help preserve water are fast vanishing READ MORE
2. A new lease of LIFE for climate action: The Lifestyle for Environment (LIFE) mission resonates with the global climate justice India has rightfully called for READ MORE

1. Reforming arts, crafts and culture education READ MORE
2. Tread cautiously on MBBS in mother tongue READ MORE

1. Why the Election Commission’s strategy to name and shame voters won’t help READ MORE
2. Pricing pressure: Sebi should avoid over-regulation READ MORE
3. Urbanisation without chaos: How to plan and govern our cities READ MORE
4. Fact check: Is the government right to criticise India’s low ranking on the Global Hunger Index? READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. Tamil Nadu’s mission to save the critically endangered vultures READ MORE
2. Indigenous UAV Rustom-2 to complete user trials by August 2023 READ MORE
3. ‘India fast emerging as a sizeable Web3 ecosystem’ READ MORE
4. Lothal, ‘oldest dock in the world’, to get heritage complex: Features, significance of the project READ MORE
5. PM Modi unveils Make in India new list: Frigates to SAMs READ MORE
6. Major wildfires in western US can increase severe storms in central states: Study READ MORE
7. Climate effect in space: Expect more satellite collisions READ MORE
8. Who is Shehan Karunatilaka, the winner of Booker Prize 2022 for Fiction? READ MORE
9. The next CJI will have the longest tenure in the last decade READ MORE

Main Exam

GS Paper- 1

1. Reforming arts, crafts and culture education READ MORE
2. In Thar desert, indigenous systems that help preserve water are fast vanishing READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Why the Election Commission’s strategy to name and shame voters won’t help READ MORE
2. Pricing pressure: Sebi should avoid over-regulation READ MORE
3. Urbanisation without chaos: How to plan and govern our cities READ MORE
4. Fact check: Is the government right to criticise India’s low ranking on the Global Hunger Index? READ MORE

SOCIAL ISSUES

1. Tread cautiously on MBBS in mother tongue READ MORE

INTERNATIONAL ISSUES AND RELATIONS

1. Many hurt in US tech war against China: America’s determination will deeply affect China but also companies around the world READ MORE
2. All major powers face two-front challenges READ MORE
3. The myth and reality of ASEAN unity READ MORE

 GS Paper- 3

ECONOMIC DEVELOPMENT

1. Digital Journey Roadmap to digital rupee isn’t too clear READ MORE
2. In the inflation fight, a liquidity conundrum READ MORE

ENVIRONMENT AND ECOLOGY

1. A new lease of LIFE for climate action: The Lifestyle for Environment (LIFE) mission resonates with the global climate justice India has rightfully called for READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Everyday tapasya READ MORE
2. Faithline: Where do we begin to learn from READ MORE

Questions for the MAIN exam

1. Political parties are just representatives of the Indian people, but this is the Indian people, who are sovereign in India schemes like Electoral Bonds are making Indian democracy fragile. Discuss.
2. ‘Overcoming poverty is not a gesture of charity but an act of justice’. Analyse how philanthropy can be the catalyst for making make India a poverty-free country?

QUOTATIONS AND CAPTIONS

• You can’t go back and change the beginning, but you can start where you are and change the ending.
• Political parties are vehicles of representation for the Indian people –the Indian Constitution makes the Indian people sovereign and not political parties of Government –and the Electoral Bonds Scheme takes away the right of people to know about the information related to political parties.
• Governors seem to have an exaggerated notion of their own roles under the Constitution.
• Governor are expected to defend the Constitution and may use their powers to caution elected regimes against violating the Constitution, but this does not mean that they can use the absence of a time-frame for decision-making and the discretionary space given to them to function as a parallel power centre.
• An enabling policy regime, proactive government initiatives and supportive regulatory administration allowed the private and public sector entities in the financial sector to overcome longstanding challenges of exclusion of a large part of the population.
• Philanthropy can be the catalyst for innovation and action, while markets and governments can bring the much-needed scale to on-ground efforts.
• The US doesn’t have the people to help industry grow. That’s where India can step in, with its high-quality innovators and researchers.
• While there may be reasons to quibble over terms such as ‘hunger’ or ‘nutrition’, the upshot of the reports is that India still has the world’s largest number of poor and the highest number of malnourished children.
• Gene-editing has been a major scientific advancement, but the limits of such endeavours must be known as there are inherent dangers in doing so.
• Trust deficit mars Sino-India relations, as the tense Line of Actual Control poses a big challenge for the leadership.

ESSAY TOPIC

• Education is the kindling of a flame, not the filling of a vessel.
• Overcoming poverty is not a gesture of charity but an act of justice.

50-WORD TALK

• The government can very well dismiss the findings on poverty and hunger made by international agencies, but its rejections lack credibility. The only way to convincingly counter such studies is by releasing official data. Endless delays in the publication of official data mean researchers are forced to use other sources.
• Gujarat’s affidavit detailing paroles and furloughs for the Bilkis Bano convicts is supremely scandalous. Worse is the Centre’s approval for remission despite objections by trial court judge and the prosecuting organisation, CBI. A Modi government minister is defending the shocking decision. SC can’t let this drag like another routine case.

Things to Remember:

• For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
• Whenever any international place will be in news, you should do map work (marking those areas in maps and exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
• For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
• For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
• Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.

[WpProQuiz 357]

THE CONTEXT: The Insolvency and Bankruptcy Code 2016 has been a path breaking reform in the corporate governance in India. According to the 32nd report of the Parliamentary standing committee on Finance, August 2021 its potential to address the problems of Non performing assets and release of capital to productive areas has not been realised. In this backdrop, this article examines the various aspects of the IBC ecosystem so that students develop the right perspective about IBC and related issues.

NEED FOR INSOLVENCY AND BANKRUPTCY CODE

• Pre IBC insolvency and bankruptcy legal framework in India was fragmented and ineffective
• For corporates, bankruptcy proceedings in India were governed by multiple laws — the Companies Act, SARFAESI Act, Sick Industrial Companies Act, and so on.
• For individuals, The Presidential Towns Insolvency Act 1909 and Provincial Insolvency Act 1920 existed which were rarely used.
• The entire process of winding up was also very long-winded, with courts, debt recovery tribunals and the Board for Industrial and Financial Reconstruction all having a say in the process
• In actual practice, this system worked for the advantages of the Debtors, willful defaulters and resulted in mounting NPA.
• In view of the above. a new legislation was required for the development of credit markets, encourage entrepreneurship and promote ease of doing business.
• The code consolidates around 11 laws relating to insolvency and bankruptcy and creates dedicated institutions for various actions under the code.
• The Code also stipulates the role, responsibilities and the timeline that must be adhered to by all stakeholders.
• Thus IBC replaces the erstwhile “debtors’ regime” with “creditors’ regime” so as to bring financial integrity in corporate management.

KEY PILLARS OF THE IBC ECOSYSTEM.

CLARIFYING CONCEPTS

• INSOLVENCY A situation where the debtor is unable to pay back the creditor. It depicts a condition of financial distress of an individual or an entity.
• BANKRUPTCY A situation when a competent court declares that an individual or entity is insolvent. It is a legal declaration of insolvency.
• LIQUIDATION When the assets of an individual/entity are sold to pay off the debt, it is known as liquidation.
• RESOLUTION It is a plan of rehabilitation or liquidation of a corporate debtor. The approved plan may lead to restructuring the debt or acquisition by another entity or eventual liquidation of assets.

ADJUDICATING AUTHORITY

• National Company Law Tribunal (NCLT) and Debt Recovery Tribunal are statutory bodies responsible for adjudicating resolution of matters related to insolvency and bankruptcy.
• NCLT is for companies and limited liability partnerships and DRT is for unlimited liability partnerships and sole proprietors

COMMITTEE OF CREDITORS(COC)

• COC consists only of financial creditors. The role of the COC is to approve and disapprove the resolution plan proposed by the resolution professional
• The minimum vote required to approve the resolution plan is 75% in a meeting of COC.

INSOLVENCY PROFESSIONALS

• The entire insolvency resolution process is managed by an Insolvency Professional who is appointed by the Insolvency and Bankruptcy Board of India

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA

• Most important institutional arrangement for the new insolvency and bankruptcy regime is IBBI.
• It was created as the Umpiring institution with multiple tasks including creation of regulations and control of agencies and professionals involved in the insolvency and bankruptcy business.

FINANCIAL CREDITOR

• Financial Creditors (FC) are the creditors who give money to the promoters. Banks, home buyers, etc. are considered as financial creditors.
• In the Committee of Creditors of Essar Steel Ltd. v. Satish Kumar Gupta, 2019, the supreme court has upheld the primacy of financial creditors over operational creditors in the resolution process.

OPERATIONAL CREDITOR

• Operational Creditors (OC) are those creditors who do not give money or cash to the promoters but they provide goods and services to the promoters. Both FC and OC can initiate the insolvency resolution although there are substantial and procedural variations.

CORPORATE DEBTOR

• Corporate debtors are the promoters who take loans or money from financial creditors or take goods or services from operational creditors as a debt.

LIQUIDATION

• If the Resolution Process fails to find a resolution for the corporate debtor within the stipulated timeline or if the COC does not approve the resolution plan by a vote of not less than 66% of the voting share, the corporate debtor is liquidated.

FIGURE 1: INSOLVENCY AND BANKRUPTCY CODE PROCESS

UNIQUE FEATURES AND BENEFITS OF THE CODE

1. Comprehensiveness: A comprehensive regime dealing with all aspects of insolvency and bankruptcy of all kinds.
2. Division of Responsibilities: Separating commercial aspects of insolvency and bankruptcy proceedings from judicial aspects and empowered stakeholders and adjudicating authorities to decide the matters expeditiously.
3. Changes in Orientation: Moving away from the ‘debtor-in-possession’ regime toa ‘creditors-in-control regime where creditors decide matters with the assistance of insolvency professionals.
4. Collective Action: Providing collective mechanism to resolve insolvency rather than recovery of loan by a creditor.
5. Timeliness: Achieving insolvency resolution in a time bound manner and empowers the stakeholders to complete transactions in time.
6. Reducing Business Failure: The code reduces incidence of failure as the inevitable consequence of default in terms of insolvency proceedings prompts behavioral changes on the part of debtor to try hard to prevent business failures.
7. Focus on Viability: It reduces failure by setting in motion a process that rehabilitates failing businesses that are viable.
8. Safe to Fail approach: By allowing closure of non-viable firms, the code enables an entrepreneur to get in and get out of business with ease, undeterred by failure (honest failure for business reasons).

ACHIEVEMENT OF INSOLVENCY AND BANKRUPTCY CODE

EASE OF DOING BUSINESS RANKING

• The legislation enabled India to leapfrog in World Bank’s Doing Business rankings from a lowly 142 in 2014 to 63 in 2020 due to the faster insolvency resolution process and others.

QUANTUM OF RECOVERY

• IBC resulted in mean recoveries of 44% for financial creditors in comparison to 24% from Debt Recovery Tribunals (DRT), SARFAESI Act and Lok Adalats combined, for financial years 2018-2020.

GROSS NON-PERFORMING ASSETS (GNPA)

• The banking sector’s GNPA ratio is estimated to have declined to 10 per cent in the end-March 2019 from 11.5 per cent the year before on the same date, as recoveries through IBC helped banks recovery bad loans, as per rating agency Crisil.

REDUCTION IN AVERAGE TIME

• The Standing Committee noted that the average time to resolve insolvency reduced from 4.3 years to 1.6 years between 2017 and 2020, since the implementation of the IBC

REVIVAL OF COMPANIES

• Several good debt-laden companies like Essar Steel, Bhushan Steel, Electro Steel, Amtek Steel, Bhushan Power and Steel, Alok Industries, and Reliance Communications have been revived with minimal loss of employment, loss of assets or loss in production.

PRACTICING NUDGE THEORY

• More than half of the CIRPs initiated by the OCs have been closed on appeal, review or withdrawal.
• This indicates that for fear of losing control and ownership of the company, debtors have preferred to pay the OCs and resolve amicably.

SUCCESS STORY OF THE IBC: THE ESSAR STEEL RESOLUTION CASE STUDY

• The Essar Steel Ltd (ESL for short) had financial debts of Rs 49,000 crore. The money was owed to a group of banks led by SBI, which included PSU and private sector banks.
• The NCLT admitted the insolvency proceedings in August 2017 and it was followed by the submission of bids by five metal giants, including ArcelorMittal.
• The NCLT handed over the interim management of ESL to another company which resulted into its turnaround.
• Meanwhile, government introduced Section 29A in the Code, which barred the promoters of companies that defaulted on loans for 12 months from submitting bids.
• These factors encouraged Arcelor Mittal to not only pay back 7500 crores of its due payment but also to increase its bid for ESL to Rs 42,000 crore from its initial bid of Rs. 29,000 crores, amounting to 92% of the credit liability.
• Various benefits accrued from these developments are outlined below.

BENEFITS TO THE BANKING SECTOR(FCs)

• Rs 42,000 crores (92%) were realised and introduced in the economy as against a debt of Rs. 49,000 crores within three years.
• In the earlier system, the resolution would have involved a protracted legal battle for a decade or so, while the debtor company would have closed down operations, and assets, plants and machinery would have been put to disuse and decay.
• Finally, only a pittance would have been recovered from whatever asset could be salvaged.

BENEFIT TO OPERATIONAL CREDITORS

• Since the company continued to be run by the turnaround specialists, the OCs were willing to extend credits.
• The company achieved operational turnaround and so the operational creditors got to continue their business with the company and also realise their dues. This was a win-win for both the OCs and the company.

BENEFIT TO EMPLOYEES

• The resolution proceedings ensured that not only did the company continue its operations but also achieved an operational turnaround. This was great news for employees who feared retrenchment.
• After the resolution, ArcelorMittal took over the company and continued its operations. Hence, most of the employees except the top management echelons would get to keep their jobs. This could never happen in resolution proceedings prior to the Code.

IBC PITFALLS AND SOLUTIONS: STANDING COMMITTEE OBSERVATIONS

ITEMS

CRITICISM

WAY FORWARD

EXCESSIVE AMENDMENTS

• The IBC has deviated from its original intent due to as many as six amendments in the last 5 years. The IBC now have a different orientation from its basic design
• There is a need for an evaluation of the extent of fulfilment of the original aims during the implementation of the Code over the years and a thorough overhauling based on the findings.

VERY LOW RECOVERY

• 95% haircut and delay in the resolution process with more than 71% cases pending for more than 180 days meant deviation from the objective of the Code.
• Provide greater clarity to strengthen creditor rights and have a benchmark for haircuts comparable to global standards.

DELAY AND VACANCIES IN NCLT

• 13,170 IBC cases involving nine lakh core rupees are pending before the NCLT
• More than 50% of the sanctioned strength of the NCLT is vacant including that of the President (32 out of 64)
• To address this delay, it recommended creating dedicated benches of the NCLT for matters related to IBC.
• Analyzing required capacity based on projected number of cases and planning recruitment in advance among others can reduce vacancies.

CRISIS IN MSMEs

• MSMEs were negatively impacted by the COVID-19 pandemic and under the current mechanism, they are considered as operational creditors, whose claims are addressed only after secured creditors
• Instituting additional protections for MSMEs, considering the current economic situation by suitable changes in the code is necessary

POST HOC BIDS

• Bidders wait for the highest bidder(H1) to become public and then try to exceed this bid through an unsolicited offer that is submitted after the specified deadline.
• This creates tremendous procedural uncertainty; delay and genuine bidders are discouraged from bidding at the right time.
• IBC needs to be amended so that no post hoc bids are allowed during the resolution process.
• There should be sanctity in deadlines so that value is protected and the prices move smoothly.

INSOLVENCY RESOLUTION PROFESSIONALS (IRPS)

• Fresh graduates are being appointed as IRPs whose competence is highly doubtful in handling the complex cases.
• Also there are issues of professional misconduct and disciplinary action has been taken against 123 IRPs.
• Professional self-regulator for insolvency resolution professionals (IRPs) that functions like the Institute of Chartered Accountants of India (ICAI) should be put in place.
• An Institute of Resolution Professionals may be established to oversee and regulate the functioning of IRPs so that there are appropriate standards and fair self-regulation

CONCLUSION: The IBC system provides a reformed resolution regime that balances the interests of all stakeholders. However, its potential to be the game changer in Indian financial landscape has not been fully successful. Now that, the one-year pause in IBC process due to Covid 19 has been lifted, fast tracking reforms cannot wait. Thus a comprehensive rejig of the Code by incorporating the recommendations of the Standing Committee and findings of a post legislative impact study is imperative. The success of IBC also depends on reforms in banking governance, working of tribunals and judicial interventions or its lack thereof, which must also be addressed immediately.

1. In Rama Tirtha’s woods of God-Realisation
2. Regulation to end unethical marketing practices of pharma hanging fire for 10 years READ MORE
3. NO ONE IS SMALL in God’s scheme READ MORE

1. World’s leading financial institutions continue to bankroll deforestation READ MORE
2. In Thar desert, indigenous systems that help preserve water are fast vanishing READ MORE

1. How Direct Benefit Transfer scheme has transformed social welfare in India READ MORE
2. We can make India poverty-free, in our lifetime READ MORE
3. Less poor but hungrier: Two reports underline country’s complex problems READ MORE

1. Whose pleasure? The Constitution has no provision for a Governor to sack Ministers READ MORE
2. Clean it up more: Electoral bonds ensure white money donations but fall short of full transparency READ MORE
3. Need to free cops from clutches of politicians READ MORE
4. Electoral Bonds: Non-Transparent and Unaccountable READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. Japan seeks Geographical Indication tag for nihonshu, an alcoholic beverage READ MORE
2. Giraffes brought to India 150 years ago from Africa may be a critically endangered species READ MORE
3. International Solar Alliance approves funding facility READ MORE
4. S. returns 307 antiquities, valued at nearly $4 million, to India READ MORE
5. Dilip Mahalanabis: The ORS pioneer who helped save millions of lives READ MORE
6. Tussle in Kerala: Can Governor Khan dismiss a state minister? READ MORE
7. Govt hikes MSP of Rabi crops by 2-9%, lentils and mustard get better hike READ MORE

Main Exam

GS Paper- 1

1. World’s leading financial institutions continue to bankroll deforestation READ MORE
2. In Thar desert, indigenous systems that help preserve water are fast vanishing READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Whose pleasure? The Constitution has no provision for a Governor to sack Ministers READ MORE
2. Clean it up more: Electoral bonds ensure white money donations but fall short of full transparency READ MORE
3. Need to free cops from clutches of politicians READ MORE
4. Electoral Bonds: Non-Transparent and Unaccountable READ MORE

SOCIAL ISSUES

1. How Direct Benefit Transfer scheme has transformed social welfare in India READ MORE
2. We can make India poverty-free, in our lifetime READ MORE
3. Less poor but hungrier: Two reports underline country’s complex problems READ MORE

INTERNATIONAL ISSUES AND RELATIONS

1. Diplomacy Is India being abrasive with US? READ MORE
2. India-China War and unending security dilemma READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. India plays a crucial role in US semiconductor plans READ MORE
2. Insuring India: PM-JAY’s targeting problem READ MORE
3. Don’t blame Nirmala Sitharaman. India has a historical obsession with rupee value READ MORE
4. US-China tech rivalry will have spillover effects. India must hedge itself READ MORE

ENVIRONMENT AND ECOLOGY

1. Paddy straw: A hurdle in the clean air dream READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. In Rama Tirtha’s woods of God-Realisation
2. Regulation to end unethical marketing practices of pharma hanging fire for 10 years READ MORE
3. NO ONE IS SMALL in God’s scheme READ MORE

Questions for the MAIN exam

1. Political parties are just representatives of the Indian people, but this is the Indian people, who are sovereign in India schemes like Electoral Bonds are making Indian democracy fragile. Discuss.
2. ‘Overcoming poverty is not a gesture of charity but an act of justice’. Analyse how philanthropy can be the catalyst for making make India a poverty-free country?

QUOTATIONS AND CAPTIONS

• Education is the kindling of a flame, not the filling of a vessel.
• Political parties are vehicles of representation for the Indian people –the Indian Constitution makes the Indian people sovereign and not political parties of Government –and the Electoral Bonds Scheme takes away the right of people to know about the information related to political parties.
• Governors seem to have an exaggerated notion of their own roles under the Constitution.
• Governor are expected to defend the Constitution and may use their powers to caution elected regimes against violating the Constitution, but this does not mean that they can use the absence of a time-frame for decision-making and the discretionary space given to them to function as a parallel power centre.
• An enabling policy regime, proactive government initiatives and supportive regulatory administration allowed the private and public sector entities in the financial sector to overcome longstanding challenges of exclusion of a large part of the population.
• Philanthropy can be the catalyst for innovation and action, while markets and governments can bring the much-needed scale to on-ground efforts.
• The US doesn’t have the people to help industry grow. That’s where India can step in, with its high-quality innovators and researchers.
• While there may be reasons to quibble over terms such as ‘hunger’ or ‘nutrition’, the upshot of the reports is that India still has the world’s largest number of poor and the highest number of malnourished children.
• Gene-editing has been a major scientific advancement, but the limits of such endeavours must be known as there are inherent dangers in doing so.
• Trust deficit mars Sino-India relations, as the tense Line of Actual Control poses a big challenge for the leadership.

ESSAY TOPIC

• Education is the kindling of a flame, not the filling of a vessel.
• Overcoming poverty is not a gesture of charity but an act of justice.

50-WORD TALK

• The government can very well dismiss the findings on poverty and hunger made by international agencies, but its rejections lack credibility. The only way to convincingly counter such studies is by releasing official data. Endless delays in the publication of official data mean researchers are forced to use other sources.

Things to Remember:

• For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
• Whenever any international place will be in news, you should do map work (marking those areas in maps and exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
• For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
• For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
• Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.

[WpProQuiz 356]

THE CONTEXT: The progression to electric vehicles(EVs) is important for India because such vehicles are sustainable and profitable in the long term. Reducing dependence on crude oil will save the government money, reduce carbon emissions, and build domestic energy independence. Besides being an economically and environmentally viable option, India’s transition to electric vehicles will allow us to fine-tune our infrastructure.

THE TRANSITION TOWARDS ELECTRIC MOBILITY

The transition towards electric mobility offers India not only an opportunity to improve efficiency and transform the transport sector but also addresses several issues that the country is currently grappling with. The concerns regarding energy security and rising current account deficit (CAD) on account of rising fossil fuel imports can be addressed with the uptake of electric mobility.

India is a power surplus country and is currently witnessing lower plant load factors due to lower capacity utilization. As per the conservative estimates, demand from electric vehicles (EV) could greatly improve the utilization factor of underutilized power plants, as charging pattern of EV users is considered to coincide with power demand during the non-peak hours in the country.

India has a clear intention of multiplying its generation from renewable energy (RE) sources which are inherently intermittent. Several reports suggest that EVs can complement the intermittent nature of power generated from RE by absorbing power at off-peak hours. The batteries in EVs can act as ancillary services for the proliferation of distributed generation resources (DER).

Apart from supporting RE generation, EVs with feasible vehicle to grid technology can act as a dynamic storage media and can enhance the grid resilience through ancillary market. This can reduce the burden of exchequer to create static energy storage systems, especially in distribution networks, to support proliferation of grid-connected roof top solar and DERs.

ELECTRIC MOBILITY INITIATIVES IN INDIA

Electric mobility initiatives in India, initially, were led by the Ministry of Heavy Industries and Public Enterprises (MoHIPE) who launched the National Electric Mobility Mission Plan (NEMMP) in 2013 and Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) in 2015. Over the years, identifying cross-sectoral complex linkages of electric mobility and achieving a multi-stakeholder development NITI-Aayog was mandated to anchor and coordinate the Electric mobility efforts in India.

Coordinated efforts resulted in six key facilitative initiatives, namely, FAME II, Urban facilitation, power sector facilitation, evolving tax regime, public private alliances and demand aggregation, which are attributed for the development of electric mobility in India.

The FAME India Scheme

• The FAME India Scheme is aimed at incentivizing all vehicle segments.

Two phases of the scheme:

1. Phase I: started in 2015 and was completed on 31st March, 2019
2. Phase II: started from April, 2019, will be completed by 31st March, 2022

• The scheme covers Hybrid & Electric technologies like Mild Hybrid, Strong Hybrid, Plug in Hybrid & Battery Electric Vehicles.
• Monitoring Authority: Department of Heavy Industries, the Ministry of Heavy Industries and Public Enterprises.

Fame India Scheme has four focus Areas:

1. Technology development
2.  Demand Creation
3.  Pilot Projects
4.  Charging Infrastructure

Objectives of FAME Scheme:

• Encourage faster adoption of electric and hybrid vehicles by way of offering upfront Incentive on purchase of Electric vehicles.
• Establish a necessary charging Infrastructure for electric vehicles.
• To address the issue of environmental pollution and fuel security.

SHIFTING ENERGY RESOURCES FROM MIDDLE EAST TO LATIN AMERICA

The government has allocated $1.3 billion in incentives for electric buses, three-wheelers and four-wheelers to be used for commercial purposes till 2022, and earmarked another $135 million for charging stations. Besides these incentives, a proposal for a $4.6 billion subsidy for battery makers has also been proposed by the NITI Aayog.

These policies are embedded with the vision to have 30% electric vehicles plying the roads by 2030. In September 2019, Japanese automobile major Suzuki Motor formed a consortium with Japanese automotive component manufacturer Denso and multinational conglomerate Toshiba to set up a manufacturing unit in Gujarat to venture into the production of lithium-ion batteries and electrodes.

Developing domestic battery manufacturing capacity may fundamentally change India’s relationship with resource-rich Latin America as the government plans to buy overseas lithium reserves.

India’s energy security dependence will shift from West Asia to Latin America. India imported 228.6 MT of crude oil worth $120 billion in 2018–19, which made it the third-largest oil importer in the world in terms of value.

Lithium triangle

Latin America’s famous lithium triangle that encompasses lithium deposits under the salt flats of northwest Argentina, northern Chile, and southwest Bolivia holds about 80% of the explored lithium of the world. In Latin America, most of the production comes from Argentina, Chile, and Bolivia.

At present, India’s lithium-ion battery demand is fulfilled by imports from China, Vietnam, and Hong Kong. In the last two years, India has had a growing appetite for lithium-ion batteries, and so, lithium imports have tripled from $384 mn to $1.2 bn.Notably, the government has intercepted this growing demand from its incipience. With its policy intervention to support battery manufacturers by supplying lithium and cobalt, this industry is more likely to grow domestically to support India’s goal to switch to electric mobility.

CHALLENGES FOR INDIA’S ELECTRIC MOBILITY INITIATIVES

Presently, India is one of the fastest growing economies in the world, but its increasing dependency on oil imports, rising environmental concerns and growing need for sustainable mobility solutions are posing serious economic and social challenges for the country. Some of these changes are following:

Rising crude oil imports –an energy security challenge

Since the early 2000, India’s crude oil imports have risen exponentially reaching a record high of 4.3mb/d in 2016. The demand for oil grew by 5.1% in 2016, higher than the world’s largest net importers, the US (0.7%) and China (2.9%), making India the world’s third largest crude oil consumer.

India’s crude oil deficits stood at US$52 billion in 2017 and accounted for almost 50% of the total trade deficit of US$109 billion. This crude oil deficit is further expected to almost double to US$100 billion against the total trade deficit of US$202 billion in 2019.

Rising pollution levels –An environmental challenge

India ranks as the third largest carbon emitting country in the world accounting for 6% of the global carbon dioxide emissions from fuel combustion. According to the WHO Global Air Pollution Database (2018), 14 out of the 20 most polluted cities of the world are in India.

Rising population –A sustainable mobility challenge

India’s current population of 1.2 billion is expected to reach 1.5 billion by 2030. Out of the 1.5 billion people, 40% of the population is expected to live in urban areas compared to 34% of 2018 population projection. The additional 6% population growth is likely to further add strain on the struggling urban infrastructure in the country, including a rise in demand for sustainable mobility solutions.

Evolving global automotive market –A manufacturing transition challenge

India is the world’s fourth largest producer of internal combustion engine (ICE) based automobiles. The growth in automotive market in India has been the highest in the world, growing at a rate of 9.5% in2017. The recent shift in global automotive technology and an increasing uptake in electric vehicles is likely to pose a challenge to the existing automotive market if the country does not plan its transition towards newer mobility solutions and develop the required manufacturing competencies.

ELECTRIC MOBILITY: A POTENTIAL SOLUTIONS FOR INDIA

In India, majority of the oil demand comes from the transport sector. The sector accounts for over 40% of the total oil consumption with around 90% of the demand arising from the road transport.

By 2020, 330 mt(million tons) of carbon emissions are expected to arise from the transportation sector, 90% of which may be from road transport alone.

The premier think tank of GoI, NITI Aayog (National Institution for Transforming India), reports that India can save 64% of anticipated passenger road-based and mobility-related energy demand and 37% of carbon emissions by 2030 if it pursues electric mobility in future.

This would probably result in an annual reduction of 156 MToE in diesel and petrol consumption for 2030, saving India INR3.9 lakh crores (or ~US$60 billion (at US$52/bbl of crude)).

The cumulative savings for the tenure 2017-2030 is expected to reach 876 MToE of savings for petrol and diesel, which totals to INR 22 lakh crores (or ~US$330 billion), and 1 gigaton for carbon-dioxide emissions.

WAY FORWARD:

The Indian market needs encouragement for indigenous technologies that are suited for India from both strategic and economic standpoint.

Since investment in local research and development is necessary to bring prices down, it makes sense to leverage local universities and existing industrial hubs.

Breaking away the old norms and establishing a new consumer behaviour is always a challenge. Thus, a lot of sensitization and education is needed, in order to bust several myths and promote EVs within the Indian market.

Subsidizing manufacturing for an electric supply chain will certainly improve the EV development in India. Along with charging infrastructure, the establishment of a robust supply chain will also be needed. Further, recycling stations for batteries will need to recover the metals from batteries used in electrification to create the closed-loop required for the shift to electric cars to be an environmentally-sound decision.

CONCLUSION:

Operationalizing mass transition to electric mobility for a country of 1.3 billion people is a great challenge. Thus, a strong common vision, an objective framework for comparing state policies and a platform for public-private collaboration are needed. In the present scenario, India must need to change its energy policy- from the Middle East to Latin America.

SOCIAL ISSUES AND SOCIAL JUSTICE

GLOBAL MULTIDIMENSIONAL POVERTY INDEX (MPI) 2022

THE CONTEXT: Recently a study was released by the research centre Oxford Poverty and Human Development Initiative (OPHI) and United Nations Development Programme (UNDP) which states that India is among many countries that have reduced poverty significantly faster.

REPORT HIGHLIGHTS:

• It is the first time that the report highlights a special section on India, giving information on 15 years of trends in the country.
• The number of poor people in India dropped by about 415 million over the last 15 years, the Global Multidimensional Poverty Index report has revealed. However, the country still has the highest number of poor people and children worldwide.
• About 71 per cent of the data for the country from the Demographic and Health Survey was obtained in 2019 before the pandemic and the rest in 2021.
• The poorest states reduced poverty the fastest and deprivations in all indicators fell significantly among poor people.
• Poverty among children fell faster, it indicated. However, India has the world’s highest number of poor children, amounting to a total of 97 million or about 21.8 per cent of the Indian children population between the ages 0 and 17 years.
• Half of the poor people in India, accounting for about 593 million are children under 18 years of age. This means that one in every three children lives in poverty compared to the one in seven ratio among adults.
• About 140 million exited poverty since 2015-16 as per the Demographic and Health Survey for India. Also, the MPI value and incidence of poverty more than halved from 0.283 in 2005-06 to 0.122 in 2015-16 and reduced again to 0.069 in 2019-21.
• Meanwhile, the incidence of poverty dropped from 55.1 per cent to 16.4 per cent over 15 years.
• Nationally, the relative drop between 2015-16 and 2019-21 was faster at the rate of 11.9 per cent annually compared with 8.1 per cent per year between 2005-06 and 2015-16.

About Global Multidimensional Poverty Index

Definition: The global Multidimensional Poverty Index (MPI) is an international measure of acute multidimensional poverty covering over 100 developing countries.

• It complements traditional monetary poverty measures by capturing the acute deprivations in health, education, and living standards that a person faces simultaneously.

Developed by: The global MPI was developed by Oxford Poverty and Human Development Initiative (OPHI) with the UN Development Programme (UNDP) for inclusion in UNDP’s flagship Human Development Report in 2010.

ECONOMIC DEVELOPMENTS

HOW DOES TOKENISATION PREVENT ONLINE CARD FRAUD?

THE CONTEXT: The Reserve Bank of India (RBI) has mandated the tokenisation of credit/debit cards for online merchants from October 1. Till then, card details for online purchases were stored on the servers of these merchants in order to help customers avoid keying in their details every time they shopped with that merchant.

THE EXPLANATION:

What is tokenisation?

• As per the RBI’s FAQ on tokenisation updated late last month, tokenisation “refers to the replacement of actual card details with an alternative code called the ‘token’, which shall be unique for a combination of card and the token requestor (i.e. the entity which accepts the request from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token).”

Why is tokenisation necessary?

• When you visit a restaurant, or even an ATM machine, it is possible for card thieves to clone your card with a skimmer, a gadget that quietly reads the magnetic strip at the back of your card.
• Similarly, hackers can also break into online websites and mobile apps that store your credit card details. Such data breaches could give con artists access to millions of cards in one go which are then sold on the dark web.
• To help lessen the chances of such fraud, some banks have mandated the use of an OTP delivered to your registered mobile number to withdraw cash at ATMs. Other banks have enabled the use of their mobile app to allow cash withdrawal without the physical use of cards.
• Some credit card-issuing banks allow limits that you can set up yourself, per day, per transaction, etc on the bank’s app. The tokenisation mandate of the RBI is a similar exercise in caution.

What are the benefits of tokenisation?

• According to RBI, a tokenised card transaction is safer as the actual card details are not shared with the merchant.
• Even if a hacker/scammer were to get their hands on one’s token number, they would not be able to make indiscriminate use of it.
• The token generated upon request for a specific merchant is unique to a specific card number and is usable only on that particular site or mobile app.
• The token is useless outside of that merchant’s ecosystem.” The “new mandate is only for the use of credit/debit cards online. For offline merchants, users would continue to swipe the cards on the POS machines as per previously existing guidelines.”
• Popular card network Visa further explains the concept of tokenisation through the example of a metro train ticket. It is useful only for that route and not on any other. Similarly, the unique token generated for a specific site is only applicable on that site and nowhere else.
• And if an undesirable third-party gains access to that specific token and shops within that specific website, the chances of identifying the party are more as their login and phone details would be with the site.

ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

WHAT ARE GREEN CRACKERS & HOW DO WE IDENTIFY THEM?

THE CONTEXT: According to the National Green Tribunal (NGT), green crackers are only allowed in cities and towns where air quality is poor or moderate and helps to reduce sound emissions.

THE EXPLANATION:

Difference between green and traditional crackers:

• Both green and traditional crackers cause pollution, and people should refrain from using either. The only difference is that green crackers cause 30 per cent less air pollution than traditional ones.
• Green crackers reduce emissions substantially, absorb dust, and don’t contain any hazardous elements such as barium nitrate. Toxic metals in traditional crackers are replaced with less dangerous compounds in green crackers. According to the National Green Tribunal (NGT), green crackers are allowed only in cities and towns where air quality is poor or moderate.

What are the toxic metals released from conventional crackers?

• Crackers release many toxic metals that can be harmful to health. The white colour emitted through crackers is aluminium, magnesium and titanium, while the orange colour is carbon or iron.
• Similarly, the yellow colour emits sodium compounds, while blue and red are copper compounds and strontium carbonates. The green agent is barium monochloride salts, barium nitrate, or barium chlorate.

What damage can these chemicals do when people are exposed to them?  Who is vulnerable to them?

• Crackers can impact the nervous system, while copper triggers respiratory tract irritation, sodium causes skin issues, and magnesium leads to mental fume fever.
• Cadmium not just causes anaemia but also damages the kidney, while nitrate is the most harmful that causes cognitive impairment. The presence of nitrite irritates mucous membranes, eyes and skin.
• Experts added that the most vulnerable population are infants, children, pregnant women, the elderly and people with underlying medical conditions. Yet no one remains untouched by the harm these chemicals cause.

 5TH ASSEMBLY OF INTERNATIONAL SOLAR ALLIANCE (ISA)

THE CONTEXT: Recently 5th Assembly of International Solar Alliance (ISA)  began in New Delhi under India’s presidentship. Participants from 109 countries will be sharing their experiences towards a low-carbon economy through the promotion of solar energy.

THE EXPLANATION:

• The Assembly is the apex decision-making body of the International Solar Alliance makes decisions concerning the implementation of the ISA’s Framework Agreement.
• The Assembly meets annually at the ministerial level at the ISA’s seat.

About International Solar Alliance (ISA)

• The ISA was conceived as a joint effort by India and France to mobilise efforts against climate change through the deployment of solar energy solutions.
• It was presented by the leaders of the two countries at the 21st Conference of Parties (COP21) to the United Nations Framework Convention on Climate Change (UNFCCC) held in Paris in 2015.
• Headquarters: India
• The Assembly is the apex decision-making body of the ISA. It meets annually at the Ministerial level at the seat of the ISA.
• Membership: A total of 80 countries have signed and ratified the ISA Framework Agreement and 101 countries have only signed the agreement.

GOVERNMENT SCHEMES AND INITIATIVES IN THE NEWS

PRADHAN MANTRI BHARTIYA JAN URVARAK PARIYOJANA – ONE NATION ONE FERTILISER

THE CONTEXT: Recently, the Prime Minister launched Pradhan Mantri Bhartiya Jan Urvarak Pariyojana – One Nation One Fertiliser.

THE EXPLANATION:

• Under the scheme, all fertiliser companies, State Trading Entities (STEs) and Fertiliser Marketing Entities (FMEs) will be required to use a single “Bharat” brand for fertilisers and logo under the PMBJP.
• All subsidised soil nutrients – urea, di-ammonium phosphate (DAP), Muriate of Potash (MoP), and NPK – will be marketed under the single brand Bharat across the nation.
• With the launch of this scheme, India will have a common bag design across the country like Bharat urea, Bharat DAP, Bharat MOP, Bharat NPK, and so on.
• The new “Bharat” brand name and PMBJP logo will cover two-thirds of the front of the fertiliser packet
• The manufacturing brands can only display their name, logo, and other information on the remaining one-third space.

SIGNIFICANCE OF THE SCHEME:

The government introduced a single ‘Bharat’ brand for all subsidised fertilisers because:

1. There are some 26 fertilisers (inclusive of urea), on which government bears subsidy and also effectively decides the MRPs.
2. Apart from subsidising and deciding at what price companies can sell, the government also decides where they can sell. This is done through the Fertiliser (Movement) Control Order, 1973.
3. When the government is spending vast sums of money on fertiliser subsidy (the bill is likely to cross Rs 200,000 crore in 2022-23), plus deciding where and at what price companies can sell, it would obviously want to take credit and send that message to farmers.

PRELIMS PERSPECTIVE

NATIONAL MARITIME HERITAGE COMPLEX AT LOTHAL

THE CONTEXT: Recently the Prime Minister reviewed the site work progress of the National Maritime Heritage Complex at Lothal in Gujarat.

THE EXPLANATION:

• It would be developed as an international tourist destination, where the maritime heritage of India from ancient to modern times would be showcased.
• The idea is to create an edutainment (education with entertainment) approach for this destination that would be of great interest for the visitors.
• It is going to cover an area of 400 acres, with structures such as Heritage Theme Park, National Maritime Heritage Museum, Lighthouse Museum, Maritime Institute, eco-resorts, and more.
• There will also be many pavilions where all coastal states in India and union territories can showcase their artifacts and maritime heritage.
• The unique feature of NMHC is the recreation of ancient Lothal city, which is one of the prominent cities of the ancient Indus valley civilization.

THE PRELIMS PRACTICE QUESTION

QUESTION OF THE DAY

Q1. With reference to culture of India, ‘pahandi’ refers to –

a) Annual Rath Yatra at Jagannath puri temple.

b) Kanwariyas travel during Kanwar Yatra.

c) Vaishno Devi Yatra

d) Char Dham Yatra

Answer: A

Explanation:

• Puri temple is famous for its annual Ratha yatra, or chariot festival, in which the three principal deities (Jagannath, Balabhadra and Subhadra are a trio of deities) are pulled on huge and elaborately decorated temple cars.
• At Jagannath Puri temple, annually, three deities are taken out in a chariot procession called Rath Yatra covering 3 kms along the Grand Road connecting the 12th century Shri Jagannath temple and the Mausi Maa temple. Servitors carry huge wooden idols from temple swaying them rhythmically in a ritual described as pahandi.

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3. Fact-Checking the HDI tally: UNDP needs to compute Indian data more accurately, India needs to provide more timely data READ MORE
4. Learn, not nitpick: Instead of trashing Global Hunger Index (GHI) 2022, Govt should draw some lessons from its findings READ MORE

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2. Time the electoral system is reviewed READ MORE
3. Succession Planning for Top Positions in Government Should Be High Priority – But Isn’t READ MORE

(Newspapers, PIB and other important sources)

Prelim and Main

1. What is card tokenization and why should you go for it READ MORE
2. At DefExpo-2022, India to pitch military hardware to Africa, IOR countries READ MORE
3. PM Modi launches ‘One Nation, One Fertiliser’ scheme: All you need to know READ MORE
4. Fight against inflation will be prolonged and dogged, says RBI READ MORE
5. New Covid-19 variants like BF.7, XBB spreading across globe: what risk do they pose? READ MORE
6. of poor in India fell by 415 mn in 15 years: UN report READ MORE
7. Justice DY Chandrachud next CJI, oath on Nov 9 READ MORE

Main Exam

GS Paper- 1

1. In the hijab row, let education not suffer READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Judicial comity over arithmetic: Changes are required in terms of how larger Benches are constituted READ MORE
2. Time the electoral system is reviewed READ MORE
3. Succession Planning for Top Positions in Government Should Be High Priority – But Isn’t READ MORE

SOCIAL ISSUES

1. Recovery analysis that points out what India got wrong READ MORE
2. Fact-Checking the HDI tally: UNDP needs to compute Indian data more accurately, India needs to provide more timely data READ MORE
3. Learn, not nitpick: Instead of trashing Global Hunger Index (GHI) 2022, Govt should draw some lessons from its findings READ MORE

INTERNATIONAL ISSUES AND RELATIONS

1. C Raja Mohan writes: India, America and the China challenge READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. Strengthening dollar shrinks foreign reserves across nations READ MORE
2. Tread carefully: Price, growth trends need to be watched closely before raising interest rates READ MORE
3. Economic Outlook READ MORE
4. India has pushed back poverty, still home to most poor people in world: UNDP index READ MORE

SECURITY

1. A better global police to counter emergent challenges READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. In Rama Tirtha’s woods of God-Realisation READ MORE
2. NO ONE IS SMALL in God’s scheme READ MORE

Questions for the MAIN exam

1. ‘In light of the extreme climate events in the current year, the world needs to implement climate policies that will ward off catastrophic climate change’. Comment.
2. ‘India’s real food problem isn’t hunger but loss and wastage of food’. Comment and suggest how India can stop the wastage of food?

QUOTATIONS AND CAPTIONS

• The less you fear, the more power you will have.
• Being fiscally conservative resulted in a rise in extreme poverty, with there being no signs of any course correction.
• While the fall of the rupee has been relatively moderate, the pace at which India’s foreign exchange reserves are dwindling are a cause for concern.
• Indian and American policies are converging. For both Delhi and Washington, Beijing presents the main national challenges. The current churn offers a promising opportunity for collaboration.
• Public-spirited efficient policing is the most meaningful confidence-building measure that people across diverse geopolitical contours desire and deserve. Interpol and cross-national law enforcement agencies must endeavour to build, maintain and operate a people-centric ecosystem to meet evolving challenges.
• The orthodoxy does not care about the education of girls. But institutions in a democracy must. They have to adopt a more compassionate view of women students wearing the hijab, allowing room for accommodation to account for tough social circumstances.
• The International Monetary Fund report titled ‘World Economic Outlook 2022: Countering the Cost-of-Living Crisis,’ released in October 2022, warns all countries, including India, of an impending economic downturn.
• In light of the extreme climate events in the current year, the world needs to implement climate policies that will ward off catastrophic climate change.

50-WORD TALK

• We follow the Westminster model in which the candidate with the highest number of votes is declared the winner. We should look at the proportional representation system in which every party gets a share of seats proportional to the share of votes it secures. Ideally, a mixed model, as is followed in Nepal & Germany, may be considered.

Things to Remember:

• For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
• Whenever any international place will be in news, you should do map work (marking those areas in maps and exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
• For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
• For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
• Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.

INTERNATIONAL RELATIONS

1. WHAT IS CHINA’S ‘WOLF WARRIOR’ DIPLOMACY?

THE CONTEXT: Recently, the 20^th National congress of Chinese Communist Party (CCP) held and  it is widely expected that Chinese President Xi Jinping will get an endorsement for a third term as President. Under Xi, China has witnessed a unique style of governance, which differs in many ways from that of more recent Chinese leaders.

THE EXPLANATION:

As China’s position has undergone a change in world affairs over the years, Xi has advocated for a more intensive approach towards handling issues both domestically and internationally. The “wolf warrior” style of Chinese diplomacy particularly attracted attention.

What does wolf warrior diplomacy mean?

• A term that gained popularity, especially after Xi became President, “wolf warrior diplomacy” is a tactic for the Chinese government to extend its ideology beyond China and counter the West and defend itself. It is an unofficial term for the more aggressive and confrontational style of communication that Chinese diplomats have taken to in the last decade.

Why is China resorting to wolf-warrior diplomacy?

• Soaring Nationalism: Since 2010, when China’s GDP overtook Japan’s as the world’s second largest, the Chinese have become more confident and China’s foreign policy has become more assertive.
• China as a great power: The latest diplomatic offensive is also part of the official effort to project China as a great power leading the global fight against the COVID-19. China’s image suffered during the crisis due to its bungled handling of the outbreak at the early stage.
• With the assertive and ambitious Belt and Road Initiative and Maritime Silk Road, China has consolidated its influence over the Indian neighbours as almost all the neighbour sans Bhutan have shown the keen interests in joining.

2. INDIA OPPOSES G7’S JUST ENERGY TRANSITION PLAN

THE CONTEXT: The G7 nations’ plan of persuading India to start negotiations on a Just Energy Transition Partnership (JETP), an initiative of the rich nations to accelerate phasing out of coal and reducing emissions has hit a road-block.

THE EXPLANATION:

About Just Energy Transition Partnership (JETP)

• JETP, an initiative of the rich nations to accelerate phasing out of coal and reducing emissions.
• The JETP initiative is modelled for the South Africa, to support South Africa’s decarbonisation efforts.
• It aims to reduce emissions in the energy sector and accelerate the coal phase-out process.
• JETP makes various funding options available for this purpose in identified developing countries.
• The JETP was launched at the COP26 in Glasgow with the support of the United Kingdom (UK), the United States (US), France, Germany, and the European Union (EU)
• Following that G7 has announced for a similar partnership in India, Indonesia, Senegal, and Vietnam.
• India’s stand – India argues that coal cannot be singled out as a polluting fuel, and energy transition talks need to take place on equal terms.

Significance:

• This is significant because this approach takes into account the societal and economic development of each partner and will not try to force-feed partners a standard solution.
• That partnership—with special emphasis on the words “just” and “transition”—is about helping fund South Africa’s decarbonization by replacing coal usage with clean energy.
• At its core, the idea is to assist green transitions by making finance available from developed countries, multilateral institutions and groups of green investors.

Strong opposition:

• If the Power Ministry continues to resist, India could still get into the negotiations if the PMO decides to intervene.
• According to India’s updated NDC, it stands committed to reduce the emission intensity of its GDP by 45 per cent by 2030, from 2005 level and achieve about 50 per cent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.

ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

3. SEA CUCUMBER

THE CONTEXT: Citing media reports of a Chinese firm investing in a sea cucumber farm in Pungudutivu, off Jaffna Peninsula in northern Sri Lanka, local fishermen have raised concern over its potential impact on their livelihoods, marine ecosystem, and land.

THE EXPLANATION:

• In 2021, Sri Lanka exported about 336 tonnes of sea cucumber to China, Singapore, and Hong Kong, according to local media reports. Desperate to find dollars to stabilise its battered economy, the Sri Lankan government appears to have identified potential for both, foreign investment and exports in breeding and selling the sausage-shaped marine animal considered a delicacy in China and Southeast Asia. Locals do not consume sea cucumbers.
• In June 2022, the Cabinet approved a proposal for a large-scale commercial sea cucumber project spanning 5,000 acres in Jaffna, Mannar, Kilinochchi and Batticaloa districts in the north and east, after Sri Lanka earned “a significant amount” of foreign exchange by exporting sea cucumbers.

Significance of Sea Cucumber?

• They are an important constituent of the marine ecosystem as they play an important role in maintaining the health of the ecosystem.
• It has no limbs or eyes, or blood.
• There are some 1,250 known species, and many of these animals are shaped like soft-bodied cucumbers.
• Demand: Sea cucumbers are in high demand in China and Southeast Asia, where they are consumed as food and used in medicine.
• This endangered species is primarily smuggled from Tamil Nadu to Sri Lanka.

COMMON NAME: Sea Cucumbers

SCIENTIFIC NAME: Holothuroidea

TYPE: Invertebrates

DIET: Omnivore

Protection:

• Protected under Schedule I under the Wildlife Protection Act (WPA), 1972 so their trade is banned.
• IUCN Red List:Brown Sea Cucumber (Endangered),Blackspotted Sea Cucumber (Least Concern), Blue Sea Cucumber (Data Deficient).
• The Ministry of Environment, Forests and Climate Change imposed a total ban on harvesting and transporting sea cucumbers in 2001.

First conservation area:

• Lakshadweep has created the world’s first conservation area for sea cucumbers.
• Other than the sea around Lakshadweep Islands and Andaman Nicobar Islands, the Gulf of Mannar at the confluence of the Indian Ocean and Bay of Bengal in Tamil Nadu is also home to sea cucumbers.

4. SRI LANKA PROPOSAL TO TRANSLOCATE GAURS

THE CONTEXT: The Indian government is considering a proposal from Colombo to export a number of gaurs, or Indian bisons, to Sri Lanka to revive the population of gavaras that have been extinct in the island since the end of the 17th century.

THE EXPLANATION:

The Zoological diplomacy-

• If the project is cleared, it would be the first such agreement between India and Sri Lanka, and part of a global trend of “wildlife or zoological diplomacy”.
• The sources from Ministry of External Affairs (MEA), which received the request in August 2022, has now forwarded it to the Ministry of Environment and Forests (MoEF), “seeking comments” on the proposal to transport at least six specimens, including a bull and three to five cows.
• According to the proposal, the Sri Lankan Department of Zoological Gardens would then carry out “captive breeding a herd of about a dozen specimens over a five year period before trial reintroduction to the wild could take place in accordance with [internationally mandated] guidelines for re-introductions”.
• The suggestion for the proposal came from Sri Lankan conservationist Rohan Pethiyagoda, who was awarded the Linnean medal 2022 (U.K.­based equivalent of the Nobel prize for zoology) for his work on restoring fresh water and forest biodiversity.

ABOUT INDIAN BISONS

• Distribution: Native to South and Southeast Asia
• In India, they are found in Nagarhole, Bandipur, Masinagudi National Parks and BR Hills.
• Conservation Status: Vulnerable in IUCN Red List.
• Included in the Schedule I of the Wild Life Protection Act, 1972.

Key Facts:

• It is the tallest species of wild cattle found in India and largest extant bovine.
• Recently, the first population estimation exercise of the Indian Gaur (Bison) was carried out in the Nilgiris Forest Division, Tamil Nadu.
• Recently, the conservation breeding of Gaur was started at Mysuru zoo under the conservation breeding programme of the Central Zoo Authority (CZA)

SCIENCE AND TECHNOLOGY

5. WHAT IS QUANTUM ENTANGLEMENT?

THE CONTEXT: The 2022 Nobel Prize in physics recognized three scientists who made ground-breaking contributions in understanding one of the most mysterious of all natural phenomena: quantum entanglement.

THE EXPLANATION:

What is Quantum Entanglement?

• The quantum entanglement means that aspects of one particle of an entangled pair depend on aspects of the other particle, no matter how far apart they are or what lies between them. These particles could be, for example, electrons or photons, and an aspect could be the state it is in, such as whether it is “spinning” in one direction or another.
• The strange part of quantum entanglement is that when you measure something about one particle in an entangled pair, you immediately know something about the other particle, even if they are millions of light years apart. This odd connection between the two particles is instantaneous, seemingly breaking a fundamental law of the universe. Albert Einstein famously called the phenomenon “spooky action at a distance.”

Two entangled particles

• The spookiness of quantum entanglement emerges from the reality of quantum superposition, and was clear to the founding fathers of quantum mechanics who developed the theory in the 1920s and 1930s.
• To create entangled particles you essentially break a system into two, where the sum of the parts is known. For example, you can split a particle with spin of zero into two particles that necessarily will have opposite spins so that their sum is zero.

GOVERNMENT SCHEMES AND INITIATIVES IN NEWS

6. OLD PENSION VS NEW PENSION SCHEME

THE CONTEXT: After Rajasthan and Chhattisgarh, recently Punjab is the latest State that has announced its plan to revert to the Old Pension Scheme (OPS).

THE EXPLANATION:

OPS vs NPS: Difference 

• National Pension Scheme replaced the OPS with effect from April 1, 2004. Under the old pension scheme, retired employees received 50% of their last drawn salary as monthly pensions. In contrast, NPS is a contributory pension scheme under which employees contribute 10% of their salary (Basic + Dearness Allowance) and the Government contributes 14% towards the employees’ NPS accounts.
• The funds under NPS are managed by PFRDA-approved pension fund managers. The onus of purchasing the annuity plan from approved pension providers is on the employee under NPS. At the time of retirement, employees are required to purchase an annuity plan for a monthly pension with a minimum of 40% of the accumulated corpus. The employee can withdraw the remaining amount as a lump sum.

THE PRELIMS PRACTICE QUESTION

QUESTION OF THE DAY

Q1. Consider the following statements about indicators used to calculate Global Hunger Index:

1. Undernourishment is given more weightage than child stunting.
2. Child stunting and child wasting are given equal weightage.
3. Child mortality is given less weightage than Undernourishment.

Which of the statements given above is/are correct?

1. 1 only
2. 1 and 2 only
3. 3 only
4. 1 and 3 only

Answer: B

Explanation:

Please refer to given table-

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