1. TRANSGENIC CROPS

TAG: GS 3: ENVIRONMENT

THE CONTEXT: Three States, Gujarat, Maharashtra and Telangana, have deferred a proposal, approved by the Centre’s Genetic Engineering Appraisal Committee (GEAC), to test a new kind of transgenic cotton seed that contains a gene, Cry2Ai, that purportedly makes cotton resistant to pink bollworm, a major pest. The conflict shows that a broad acceptance of genetically modified crops continues to be elusive.

EXPLANATION:

What is the status of transgenic crops in India?

• There is wide variety of crops as brinjal, tomato, maize, chickpea in various stages of trials that employ transgenic technology. However, cotton remains the only transgenic crop that is being commercially cultivated in India.
• After a long wait, the GEAC, the apex technical body charged with evaluating proposals for testing genetically modified (GM) seeds, approved the environmental release of Mustard hybrid DMH-11 and its parental lines in 2022 for seed production and testing.
• In 2010, the GEAC had approved GM Brinjal, but this was put on an “indefinite moratorium” by the United Progressive Alliance government.

What is the process of regulating transgenic crops in India?

• The process of developing transgenic crops is an elaborate one as inserting transgenic genes into plants to elicit a sustained, protective response is a mix of both science and chance.
• There are multiple safety assessments done by committees before they are cleared for further tests in open plots of land which are located at either agricultural universities or plots controlled by the Indian Council for Agricultural Research (ICAR).
• A transgenic plant can apply for commercial clearance, only after it has proven to be demonstrably better than comparable non-GM variants on claimed parameters (for instance, drought tolerance or insect resistance) without posing ecological harm to other species that may be being cultivated in the vicinity.
• Open field trials often take place over multiple crop seasons and types of geographical conditions, to assess its suitability across different States.

What is the issue?

• The cotton seed has been developed by the Hyderabad-based Bioseed Research India with Cry2Ai which makes it resistant to pink bollworm.
• The first generations of transgenic cotton had been developed to inure cotton against a more widespread pest called the American bollworm.
• The Cry2Ai seed has passed preliminary, confined trials and was recommended by the GEAC to be tested in farmer’s fields at Telangana, Maharashtra, Gujarat and Haryana.
• This was after the GEAC in October 2022 sent letters to all States to communicate their views within two months on the proposal. States responded that the proposal was unacceptable to them.

Are there changes in the offing in process of regulation of GM crops?

• The GEAC consists of a panel of plant biotechnologists and is headed by a senior official of the Environment Ministry and co-chaired by the scientist of the DBT
• To resolve the issue of States not according to approvals on testing, because of differing attitudes to GM crops, the GEAC is considering a proposal by the DBT to declare some regions across India as ‘notified testing sites.

Genetic Engineering Appraisal Committee (GEAC)

• It functions in the Ministry of Environment, Forest and Climate Change(MoEF&CC).
• As per Rules, 1989, it is responsible for appraisal of activities involving large scale use of hazardous microorganisms and recombinants in research and industrial production from the environmental angle.
• The committee is also responsible for appraisal of proposals relating to release of genetically engineered (GE) organisms and products into the enviornment including experimental field trials.
• GEAC is chaired by the Special Secretary/Additional Secretary of MoEF&CC and co-chaired by a representative from the Department of Biotechnology (DBT).
• Presently, it has 24 members and meets every month to review the applications in the areas indicated above.

2. NON-COMMUNICABLE DISEASES

TAG: GS 2: HEALTH ISSUES

THE CONTEXT: The new national estimates for diabetes and other non-communicable diseases (NCD) shows that 31 million more Indians became diabetic in four years (2019-2021).

EXPLANATION:

What were the findings?

• In 2021, a study found that India has 101 million people with diabetes and 136 million people with prediabetes.
• Additionally, 315 million people had high blood pressure; 254 million had generalised obesity, and 351 million had abdominal obesity.
• 213 million people had hypercholesterolaemia (wherein fat collects in arteries and puts individuals at greater risk of heart attack and strokes) and 185 million had high low-density lipoprotein (LDL) cholesterol.
• The decade-long nationwide study was funded by the Indian Council of Medical Research and Department of Health Research, Ministry of Health and Family Welfare and co-ordinated by the Madras Diabetes Research Foundation. The results of the study are to be published in The Lancet Diabetes and Endocrinology journal.

What is the significance of the study?

• The study is the first comprehensive epidemiological research paper which includes participants from 31 States and some Union Territories. There are two big trend indicators in the study.
• First, diabetes and other metabolic non-communicable diseases, such as hypertension, obesity and dyslipidemia are much more common than estimated previously in India.
• Second, while currently urban regions had higher rates of all metabolic NCDs than rural areas, with the exception of prediabetes, rural India will see a diabetes explosion in the next five years if left unregulated.
• While the diabetes epidemic is stabilising in the more developed States of the country, it is still increasing in most of the other States. Thus, there are serious implications for the nation, warranting urgent State-specific policies and interventions to arrest the rapidly rising epidemic of metabolic NCDs in India.

Status of Non communicable disease:

• India is experiencing a rapid health transition with a rising burden of Non-Communicable Diseases (NCD) surpassing the burden of Communicable diseases like water-borne or vector borne diseases, TB, HIV, etc.
• The four major NCDs are cardiovascular diseases (CVDs), cancers, chronic respiratory diseases (CRDs) and diabetes which share four behavioural risk factors – unhealthy diet, lack of physical activity, and use of tobacco and alcohol.
• Meanwhile, a study ‘India: Health of the Nation’s States – The India State-Level Disease Burden Initiative in 2017’ by Indian Council of Medical Research (ICMR) estimated that the proportion of deaths due to NCDs in India have increased from 37.9% in 1990 to 61.8% in 2016.
• Non-Communicable Diseases like Cardiovascular diseases, Cancer, Chronic Respiratory Diseases, Diabetes, etc. are estimated to account for around 60% of all deaths. NCDs cause considerable loss in potentially productive years of life. Losses due to premature deaths related to heart diseases, stroke and Diabetes are also projected to increase over the years.

National Programme for Prevention & Control of Non-Communicable Diseases (NP-NCD)

• The existing National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke (NPCDCS) programme has been renamed National Programme for Prevention & Control of Non-Communicable Diseases (NP-NCD) amid widening coverage and expansion.
• Ministry of Health and Family Welfare (MoHFW) has decided to rename the portal which enables population enumeration, risk assessment, and screening for five common NCDs, including hypertension, diabetes, and oral, breast and cervical cancers of the population aged above 30 years.
• Now Schemes subsume all types of NCDs with an addition of diseases to the National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke (NPCDCS), such as non-alcoholic fatty liver disease, chronic kidney disease etc.
• NP-NCD is being implemented under the National Health Mission (NHM) across the country.
• Under NP-NCD, NCD Cells are being established at National, State and District levels for programme management, and NCD Clinics are being set up at District and CHC levels, to provide services for early diagnosis, treatment and follow-up for common NCDs.

Objectives of NP-NCD

• Health promotion through behaviour change with involvement of community, civil society, community based organizations, media etc.
• To prevent and control chronic non-Communicable diseases, especially Cancer, Diabetes, CVDs and Stroke.
• To support for diagnosis and cost-effective treatment at primary, secondary and tertiary levels of health care.
• To support for development of database of NCDs through Surveillance System and to monitor NCD morbidity and mortality and risk factors.

3. TRANSCRANIAL MAGNETIC STIMULATION (TMS)

TAG: GS 3: SCIENCE AND TECHNOLOGY

THE CONTEXT: Recently, a study by Stanford University researchers reported some evidence that in people without depression, a part of the brain called the anterior insula sends signals to another part called the anterior cingulate cortex, whereas in people with depression, the signal goes the other way. According to the researchers, TMS may be alleviating depression by reversing the signal to go the right way.

EXPLANATION:

• The technique is used to non-invasively modulate the cortical activity of the brain.
• Magnetic pulses applied non-invasively to the scalp can stimulate the brain, to reverse brain changes, and to bring about rapid relief to severely depressed patients for whom standard treatments may have failed. This non-invasive brain stimulation modality is called repetitive transcranial magnetic stimulation (rTMS).
• rTMS is based on the phenomenon of electromagnetic mutual induction, first reported by Michael Faraday in 1831.
• rTMS generates brief electromagnetic pulses via an insulated coil placed over the scalp. These magnetic pulses non-invasively modulate the cortical activity of the brain.
• Daily rTMS stimulation for several weeks has also been shown to be effective in reducing the symptoms of a range of neuropsychiatric disorders.
• In 2008, the U.S. Food and Drug Administration (FDA) approved TMS as a treatment for clinical depression.
• The neuropsychological effects of TMS are particularly likely when a current is delivered in repetitive trains rather than as single pulses. If the stimulation occurs more quickly than once per second (1 Hz), it is called fast rTMS.
• It’s quite different from electroconvulsive therapy (ECT). Unlike ECT, rTMS does not involve producing a seizure, and does not require the person to be asleep or under anaesthetic

Why does TMS work?

• rTMS stimulation, over the course of a few weeks, increases neuronal activity in the area under the coil. It also changes the strength of connections between different areas of the brain. There is some reason to believe this restores the normal interaction between brain regions, although such hypotheses require further testing and replication.
• By briefly passing a current through a coil of wires, a strong and rapidly fluctuating magnetic field can be formed. This generates electrical currents in the underlying brain tissue. This also affects the membrane potential of nearby brain cells.
• rTMS can stimulate specific brain regions, such as the sensory or motor areas, to evoke corresponding sensory or motor responses. It can also interfere with ongoing brain activity and act as a brief virtual lesion.

What are the clinical applications?

• TMS has been used for many years in clinical neurophysiology to explore the integrity of the motor cortex of the brain after a stroke.
• Clinically, rTMS has been used to relieve depressive states. In the treatment of depression, 40 pulses of stimulation are delivered over four seconds, followed by a gap of 26 seconds before the next 40 pulses. A brain area called the left prefrontal cortex, which is in the front part of the brain, is targeted in this process.
• Research studies have also examined whether active and sham (dummy) TMS produce the same clinical response in depression. These studies concluded that greater response was observed in patients who received active treatment.
• rTMS has also been used to treat refractory obsessive compulsive disorder (OCD). Although the FDA has approved the use of rTMS for refractory OCD, more evidence and refinement in protocols are needed at this time. At present, it remains an add-on treatment.
• There is also preliminary evidence that rTMS relieves post-traumatic stress disorder (or PTSD).

Does TMS have adverse effects?

• Rarely, rTMS may induce seizures in at-risk patients, for example those with a family history of epilepsy. This is more likely with fast rTMS than with slow rTMS. However, current safety protocols have also greatly reduced the likelihood of seizures.
• Minor side-effects are more common, including muscle tension headaches. To prevent short-term changes in hearing threshold as a result of the noise generated by the equipment, earplugs are recommended during the session.

4. ALLIGATOR GAR FISH

TAG: GS 3: ENVIRONMENT

THE CONTEXT: Recently, a non-native alligator gar fish, known for its crocodile-like head and razor-sharp teeth, was found in one of Kashmir’s idyllic lakes, raising apprehensions about its impact on the native fish species.

EXPLANATION:

• The rare, carnivorous fish was caught by the Jammu and Kashmir Lake Conservation and Management Authority (LCMA) during the routine deweeding process near Sher-e-Kashmir International Convention Centre (SKICC), the main venue for the Group of Twenty (G20) tourism meeting in Srinagar, the summer capital of Jammu and Kashmir.
• The finding sent alarm bells ringing among the scientists; they fear that the presence of non-native fish species will spell doom for the eco-fragile flora and fauna of the waterbody.
• It would kill all fingerlings of fish species already present in the waterbody and has a tendency to destroy natural aquatic life of Dal Lake.
• Central Inland Fisheries Research Institute Barrackpore, said alligator gar fish is not an Indian species and normally found in northern and central America and also in Mexico. “But in recent years it was also found in some parts of India like Bhopal, Kerala and from the waterbodies of Maharashtra and Kolkata.

Alligator gar:

• The alligator gar is a close relative of the bowfin species. It is a ray-finned euryhaline fish and is one of the biggest freshwater fish in North America and the largest species in the ‘gar’ family.
• It is a predator fish and a carnivore, it can eat all types of fishes and therefore poses a threat to native species and to the overall ecosystem. For example, gar fish grows rapidly and has a life span of 20-30 years.

• Alligator gars feed on other fish and are thrown in Indian waterbodies knowingly or unknowingly. Gar fishes are euryhaline and can grow up to eight feet. They can be dangerous for indigenous fish species. During winter, they can even sustain in the cold waters of Dal because the temperature they mostly live in is 11-23 degrees Celsius.
• The Indian Biological Diversity Act 2002 prohibits the presence of any kind of invasive fish species that can be hazardous to natural fish fauna.
• Alligator gars are undoubtedly a serious threat to local biodiversity but only if they become adaptive in a particular environment.

5. PREDATOR UAV

TAG: PRELIMS PERSPECTIVE

THE CONTEXT:  Defence Acquisition Council (DAC) approved the procurement of armed Predator Unmanned Aerial Vehicles (UAV) from General Atomics Aeronautical Systems (GA-ASI),  an aeronautics company based in the United States. The procurement is now awaiting the final nod from the Cabinet Committee on Security.

EXPLANATION:

• As per GA-ASI, the MQ-9 UAV has an endurance of over 27 hours, speeds of 240 KTAS, can operate up to 50,000 feet, and has a 3,850 pound (1,746 kilograms) payload capacity that includes 3,000 pounds (1,361 kilograms) of external stores.
• The maritime variant of the MQ-9 UAV, known as Sea Guardian, has an endurance of over 30 hours.

• Once delivered and employed, these High-Altitude Long Endurance drones can carry out and boost the Indian Armed Forces’ Intelligence-Surveillance-Reconnaissance (ISR) capabilities.
• Armed with payloads, the weaponized UAV will be able to strike strategic targets in mountains and the maritime domain during long-endurance missions.
• As per the USAF, MQ-9 UAV is employed primarily as an intelligence-collection asset and secondarily against dynamic execution targets.
• It can also undertake close air support, combat search and rescue, precision strike, buddy-lase, convoy and raid overwatch, route clearance, target development, and terminal air guidance, according to the USAF.
• As per GA-ASI, the MQ-9 UAV has been acquired by the US Air Force, the US Department of Homeland Security, NASA, the Royal Air Force, the Italian Air Force, the French Air Force and the Spanish Air Force.

Defence Acquisition Council (DAC):

• DAC is the highest decision-making body of the defence Ministry on procurement to ensure expeditious procurement of the approved requirements of the armed forces.
• The apex body is responsible for clearing all capital acquisitions for the Indian Armed Forces.
• The DAC will perform the following functions:

(a) Give ‘in principle’ approval to Capital acquisitions in the Long Term Perspective Plan (LTPP) covering a 15-year time span at the beginning of a Five Year Plan period.

(b) Give ‘in principle’ acceptance of necessity to each Capital acquisition project for incorporation in the forthcoming Five Year Plan, at least nine months before the commencement of the first year of that plan. The approval will involve the identification of Either – ‘Buy’ Projects (outright purchase) Or – ‘Buy and Make’ projects (purchase followed by licensed production/ indigenous development) Or – ‘Make’ Projects (indigenous production and R&D)

(c) Monitor the progress of major projects on a feedback from the Defence Procurement Board.

• The DAC will meet as required. The approval in principle should be seen as first step in the process of ‘acceptance of necessity’ by the concerned Administrative Wing in MoD in consultation with Defence(Finance) and as a recommendation for eventual consideration of FM/CCS (as required).
• The decision of Defence Minister based on DAC deliberations will flow down from implementation to Defence Procurement Board, Defence Production Board and Defence R&D Board.

1. DIGITAL PUBLIC INFRASTRUCTURE (DPI)

TAG: GS 3: ECONOMY

THE CONTEXT: Cyber security and adoption of Digital Public Infrastructure (DPI) will be on the agenda of the G20 Digital Economy Working Group. Topics likely to be discussed are digital public infrastructure (DPI) and securitising the digital economy. A toolkit and awareness module will also be worked on about the subject.

EXPLANATION:

• There is need for looking for common recognition of digital skills and it would allow G20 countries to recognise certifications and skills amongst each other. Such a frame would help in addressing skill gaps in countries.
• Digital public infrastructure (DPI) is a new conceptual model for services such as identity, monetary transactions, credential management, and data exchange that are essential to participating in society and markets in the digital era.
• DPIs have two key conceptual elements. As infrastructure, they cut through the siloed approach of designing and implementing digital solutions with interoperable, society-scale programmes that shift innovation and competition to activities that take place atop it. For example, a single electrical grid, by standardising voltage and amperage, eliminates competition around delivery of power, but creates vast competitive markets around items (like appliances) that use power. As public infrastructure, DPIs prioritise access and inclusion over profits, similar to how electricity and water are provisioned in much of the world.
• Because DPIs are a combination of software, standards, and policy they can be replicated and adopted by countries more quickly than their physical infrastructure counterparts. For example, the Modular Open-Source Identity Platform, a digital public good born out of Aadhaar, India’s homegrown digital identity programme (one of the world’s leading DPIs), is being implemented in several other countries, including Sri Lanka, Ethiopia, Morocco, the Philippines, Guinea, and Togo.

A framework for financing of DPIs

• Financing of DPIs can be understood using the strategic triangle framework that weaves together three key elements of any policy priority: (i) public value, (ii) operational feasibility, and (iii) support or political feasibility.
• For instance, two comparable digital payment DPIs, India’s Unified Payment Interface (UPI) and Brazil’s Pix, were conceptualised for two different primary objectives. For UPI, it was to accelerate the adoption of digital payments and address the problem of financial exclusion, while for Pix, it was to catalyse market competition and innovation in digital payments. Operationally, UPI is funded and supported by a consortium of banks, while Pix is funded and supported by Banco Central do Brasil (Brazil’s central bank). While UPI is currently free of cost for all categories of users, Pix charges a transaction fee for merchant transactions.
• There is a third model of financing that is government-led for the initial capital as well as through the lifecycle of the DPI. For example, Aadhaar has been entirely funded by the government since its launch in 2009

The G20’s Role

• It is important for the G20 to build an understanding of different financing models and their context to help navigate implications on aid programmes, trade policy, and global governance frameworks.
• Global governance: There are already examples of cross-border linking of DPIs. For instance, Thailand’s Prompt Pay is now linked to cross-border payments in six countries, and the linking of India’s UPI and Singapore’s Pay Now
• Trade policy: With respect to trade policy, it is important to recognise what models of finance for DPIs will be understood as legitimate state activity and what will be perceived as interventions into areas that impact trade and commerce among the G20 countries or violate existing international trade norms.
• Aid: As more countries implement DPIs, best practices around financing will serve as inputs that G20 aid agencies can use to design funding programmes that support the operational sustainability of a DPI and recipient countries’ policy objectives.

Accordingly, guidelines on DPI financing can consider:

• Applying the strategic framework to identify the most suitable source/s of financing. All DPIs need not be similarly financed or funded.
• Linking sources of finances and financing models of DPIs to governance frameworks and the role of government.
• Emphasising financing of both initial capital and operations and maintenance costs.
• Exploring possibilities of monetisation and financial viability of DPIs, where possible.

2. FOOD SAFETY INDEX

TAG: PRELIMS PERSPECTIVE

THE CONTEXT: Kerala has secured the first position in the national food safety index of the Food Safety and Standards Authority of India (FSSAI).

EXPLANATION:

• This ranking secured by the State was in recognition of the streamlined and consistent activities of the State in the area of food safety.
• The food safety index, at the national level, is determined on the basis of enforcement activities such as food safety checks, sample collection, sample examination prosecution cases, number of NABL-recognised food safety labs in the State, efficiency and expertise of labs, FoSTaC training received by the food safety laboratory staff, State-level implementation of FSSAI’s Eat Right initiatives, and food safety awareness efforts of the department.
• The statement said some of the initiatives taken up by the department, including the implementation of the food safety village scheme in 140 panchayats, the Safe and Nutritious Food at Schools initiative, and the 3,000-odd food safety awareness classes helped Kerala secure the first place in the index.

Food Safety Index

• FSSAI has developed State Food Safety Index to measure the performance of states on various parameters of Food Safety.
• This index is based on performance of State/ UT on five significant parameters, namely, Human Resources and Institutional Data, Compliance, Food Testing – Infrastructure and Surveillance, Training & Capacity Building and Consumer Empowerment. The Index is a dynamic quantitative and qualitative benchmarking model that provides an objective framework for evaluating food safety across all States/UTs.

Food safety parameters:

• Human Resources and Institutional Data (with 18% weightage): The objective is to check availability of strong culture and ecosystem of enforcement commensurate with the size and population of the State/UT as well as participation of other departments and stakeholders in food safety activity at State and district levels. This parameter measures the availability of human resources like number of Food Safety Officers, Designated Officers, facility of adjudications and appellate tribunals, functioning of State/ District level Steering Committees, pendency of cases and their monitoring and participationin Central Advisory Committee meetings of the Food Authority.
• Compliance (with 28% weightage): This is the most important parameter and measures overall coverage of food businesses in licensing & registration commensurate with size and population of the State/UTs, special drives and camps organized, yearly increase, promptness and effectiveness in issue of state licenses/ registrations.
• Food Testing- Infrastructure and Surveillance (with 18% weightage): This parameter measures availability of adequate testing infrastructure with trained manpower in the States/ UTs for testing food samples. The States/ UTs with NABL accredited labs and adequate manpower in the labs score more in this parameter. The availability and effective utilization of Mobile Food Testing Labs and registration and utilization of InFoLNet (Indian Food Laboratories Network) are also examined under this parameter.
• Training and Capacity Building (with 8% weightage): This parameter focuses on training and capacity building of regulatory staff (Dos and FSOs), number of trainings held under FoSTaC (Food Safety Training and Certification) and the availability of trained Food Safety Supervisors in food businesses across the State/UT.
• Consumer Empowerment and FSSAI initiatives (with 18% weightage): This parameter measures the performance of States/ UTs in various consumer empowering initiatives of FSSAI like participation in Food Fortification, Eat Right Campus, BHOG (Blissful Hygienic Offering to God), Hygiene Rating of Restaurants, Clean Street Food Hubs, etc.
• Improvement in Rank of States/UTs from State Food Safety 2021-2022 (with 10% weightage)

Categories of States

• Further, based on the fact that similar States should be compared to ensure comparability among similar entities for the generation of ranks of States/UTs under SFSI, the States/UTs are classified into 3 categories namely Large States, Small States and UTs for the evaluation and assessment.

3. JATAN:  VIRTUAL MUSEUM BUILDER

TAG: PRELIMS PERSPECTIVE

THE CONTEXT: Central government plans to complete 3D digitisation of all museums under its administrative control by 2023 for better conservation of artefacts under JATAN.

EXPLANATION:

• Museums includes Salar Jung museum, Hyderabad, the Allahabad Museum in Prayagraj, the Indian Museum, Kolkata, the Victoria Memorial Hall, the National Museum and the National Gallery of Modern Art.
• The Culture Ministry has under its ambit 10 museums, including those mentioned above. Apart from these, the Archaeological Survey of India also has site museums at 44 locations spread throughout the country in proximity to important archaeological sites.
• Besides aiding conservation, 3D digitisation in the museum space can offer visitors new ways to access and explore the collection. 3D models can be used in augmented reality and virtual reality learning experiences, and facilitate 3D printing

JATAN:

• JATAN is a digital collection management system for Indian museums. It is a client server application with features such as image cropping, watermarking, unique numbering, management of digital objects with multimedia representations, Dublin core metadata compliance, collaborative framework for museum curators and historians, search and retrieval, access control for the portal, user administration, conservation reports, 3D virtual galleries and public access through web, mobile or touch screen kiosks.
• It can create 3D virtual galleries and provide public access through web, mobile or touch screen kiosks.
• CDC Group, C-DAC Pune has designed and developed JATAN.
• JATAN software is successfully deployed in ten national museums across India, as standardized by Ministry of Culture, Government of India. The list of national museums where JATAN has been deployed is as under Digitisation cell.
• The Digitization Cell of National Museum is the nodal unit for Digitization of Museum Objects in JATAN platform. JATAN provides public the access to any artefacts on display or in the reserve collection of the Museum. Having a digital record not only for external use but for keeping data for internal use such as tracking its location, conservation details, etc.
• Jatan Virtual Museum Builder is the software being used for digitizing records of antiquities in the various collections, that are displayed in a common portal for the public view. It enables upkeep, research and making antiquities of Indian museums more accessible and visible to the world than ever before.

3D scanning

• The digitisation process involves 3D scanning which means analysing a real-world object or environment to collect three-dimensional data of its shape and possibly its appearance. The collected data is then used to construct digital 3D models.
• Entire process was being carried out by the Ministry of Electronics and Information Technology (MeitY). A Memorandum of Understanding has been signed between the MeitY and Union Culture Ministry for this.
• The 3D digitisation would be done using the JATAN virtual museum builder software which has been designed and developed by Human Centres Design and Computing Group, Centre for Development of Smart Computing, Pune.

4. URBAN CO-OPERATIVE BANKS

TAG: GS 3: ECONOMY

THE CONTEXT: RBI notifies 4 key measures to help strengthen 1,514 Urban Co-operative Banks . Pursuant to detailed discussions held by Union Home Minister and Minister of Cooperation with Finance Minister and Governor, Reserve Bank of India (RBI), the RBI has notified these vital measures to strengthen Urban Co-operative Banks.

EXPLANATION:

• The cooperatives based on the urban sector are becoming sizable entities given their customer base and scale of operations.
• With the rapid growth of the urban cooperative sector, the RBI is extending strong regulatory and supervisory norms for UCBs.
• In February 2020, the government has amended the Banking Regulation Act to give more powers to the RBI for regulating the UCBs.

The ministry has listed the four measures notified by the RBI:

• In order to expand their business, UCBs can now open new branches up to 10 per cent (maximum 5 branches) of the number of branches in the previous financial year without prior approval of RBI in their approved area of operation. UCBs have to get the policy approved by their board and comply with the Financially Sound and Well Managed (FSWM) Norms.
• UCBs can also do One-Time Settlement at par with commercial banks. The central bank has notified a framework governing this aspect for all regulated entities, including UCBs. Now co-operative banks through board-approved policies may provide process for technical write-off as well as settlement with borrowers.
• RBI has decided to extend the timeline for UCBs to achieve Priority Sector Lending (PSL) targets by two years i.e. up to March 31, 2026. The deadline to achieve PSL target of 60 per cent, which was March 31, 2023, has also been extended to March 31, 2024. The excess deposits, if any, after clearing the shortfall of PSL during FY 2022-23 will also be refunded to the UCB.
• In order to meet the long pending demand of the cooperative sector for closer coordination and focused interaction, the RBI has recently notified a nodal officer as well. These initiatives will further strengthen the UCBs.

Urban Cooperative Bank:

• Urban Cooperative Banks otherwise known as Primary Cooperative Banks are an important component of the financial system because of their asset size and high exposure to depositors.
• As per Section 56 of the Banking Regulation Act, 1949, a primary co-operative bank (Urban Co-operative Bank or UCB) means a co-operative society, other than a primary agricultural credit society, whose (i) Primary or principal business is a transaction of banking business.

(ii) Paid-up share capital and reserves of which are not less than one lakh of rupees:

• The UCBs are diverse in terms of their size and operations. Given this heterogeneity, a differentiated regulatory regime is followed by RBI and thus, the UCBs are categorised under two Tiers (Tier I and II).
• Tier II UCBs have a larger depositor base and a wider geographical presence compared to the Tier I UCBs.
• Tier I UCBs is defined as (i) Banks with deposits below `100 crore operating in a single district, (ii) Banks with deposits below ` 100 crore operating in more than one district provided the branches are in contiguous districts and deposits and advances of branches in one district along with constitute at least 95 per cent of the total deposits and advances respectively of the bank and (iii) Banks with deposits below  ` 100 crore, whose branches were originally in a single district but subsequently became multi-district due to reorganisation of the district.
• All other UCBs are categorised as Tier-II UCBs. This categorisation is based on their branch network, area of operation and the level of deposits. The Banking Regulation Act, 1949, instructs the submission of periodical returns by UCBs to the Reserve Bank of India.

Regulation and Supervision of UCBs by the RBI

• The RBI, as the central bank, is known for its prudent regulation and supervision of financial institutions including commercial banks, NBFCs, UCBs etc.
• In the case of UCBs, the central bank regulates and supervises them to ensure that the institutions are financially fit to deliver their functions.
• Regulatory norms related to UCBs are there regarding licensing, maintenance of CRR, SLR, CRAR, Minimum net owned fund requirements etc. Following are the main regulatory measures for UCBs:
• Licensing of New Primary (Urban) Cooperative Banks: For starting the banking business, a primary (urban) cooperative bank, as in the case of a commercial bank, is required to obtain a licence from the RBI as per the BR Act.
• Licensing of Existing Primary (Urban) Co-operative Banks: A primary credit society which would like to become a primary (urban) cooperative bank (by fulfilling the share capital and reserve norms) should avail a license from the RBI.
• Branch Licensing: Primary (urban) cooperative banks are required to obtain permission from the RBI for opening branches.
• Statutory Provisions: Some of the statutory provisions under the BR Act is also applicable for UCBs, and they will be monitored on the basis of these provisions:

(a) Minimum Share Capital: Minimum paid-up capital of Rs 1 lakh.

(b) Maintenance of CRR and SLR: The UCBs have to keep the SLR as per the RBI requirements.

• Previously, the RBI adopted differential SLR norm in accordance with the asset size of UCBs. Several prudential norms were applied on UCBs since March 1993. These prudential norms include:

Applying capital adequacy standards,

Prescribing an asset-liability management framework,

Enhancing the proportion of holding of Government and other approved securities for the purpose of SLR stipulation,

Restriction on bank finance against the security of corporate shares and debentures

Limiting the exposure to capital market investment.

• Regulatory trends for UCBs in recent years are in accordance with the challenges they are facing. Earlier, in the context of the big challenges for UCBs, the RBI appointed High-Power Committee (Chairman: K. Madhava Rao, 1999) to review the performance of UCBs. As a follow-up, the RBI introduced further measures to strengthen the UCBs.
• Failures of cooperative banks like the Madhavapura Mercantile Cooperative Bank brought stringent regulatory control over the cooperative banking system. Recently, the failure of Punjab and Maharashtra Cooperative Bank compelled RBI to tighten regulations along with government efforts to give more powers to the RBI by amending the Banking Regulation Act in September 2020.

5. NHAI SUSTAINABILITY REPORT

TAG: PRELIMS PERSPECTIVE

THE CONTEXT: National Highways Authority of India (NHAI) has published its inaugural ‘Sustainability Report for FY 2021–22,’ showcasing its dedication to environmental sustainability and social responsibility.

EXPLANATION:

• NHAI’s sustainability efforts have yielded positive results in terms of environmental and energy conservation.
• The report encompasses NHAI’s governance structure, stakeholder engagement, and initiatives related to the environment and social responsibility.

Highlights:

• NHAI’s sustainability efforts have yielded positive results in terms of environmental and energy conservation.
• From FY 2019-20 to FY 2021-22, direct emissions decreased by 18.44 per cent and 9.49 per cent due to reduced fuel consumption. .
• The report highlights a decline in greenhouse gas (GHG) emissions from energy consumption, operations, transport, and travel.
• NHAI has also achieved a substantial decrease in energy intensity, with a reduction of 37 per cent in FY 2020-21 and 27 per cent in FY 2021-22, while increasing the kilometres constructed during the reporting period.
• The widespread adoption of electronic toll collection through FASTag, with over 97 per cent penetration, has also significantly contributed to reducing the carbon footprint.
• NHAI has been actively using recycled materials for constructing national highways, including fly ash and plastic waste, for the past three years. The use of recycled asphalt (RAP) and recycled aggregates (RA) has also increased.
• In a concerted effort to protect wildlife and mitigate man-animal conflict, NHAI has constructed more than 100 wildlife crossings across 20 states in the last three years.
• Through a performance-based management system, NHAI has successfully promoted gender diversity and minority employees, resulting in a 7.4 per cent increase in female hiring and an overall three per cent increase in the workforce over three financial years.