1. RESERVE BANK OF INDIA (RELIEF MEASURES BY BANKS IN AREAS AFFECTED BY NATURAL CALAMITIES) DIRECTIONS, 2018
TAG: GS 3: ECONOMY
THE CONTEXT: The Manipur government has declared that the whole State of Manipur has been affected by riots and violence, impacting the economic activities and livelihood of majority of the general public. To provide relief to the affected people and businesses, the State government has invoked a rarely used Reserve Bank of India (RBI) provision pertaining to restructuring and rescheduling of loans. It provides relief to borrowers when economic activity comes to a halt and offers moratorium on repayment of loans.
EXPLANATION:
- The guidelines have so far been mostly invoked in areas affected by natural calamities and not for a law and order situation in the recent past.
- Manipur is in the grip of ethnic violence between the tribal Kuki-Zo and the Meitei communities. Internet remains suspended in the State and curfew has been imposed in several districts, more than 50 days since the violence started.
- Recently, reports were received from several Deputy Commissioners that many properties and businesses of residents have been affected either directly or indirectly due to the present law and order situation in the State.
- Due to this, the borrowers who had taken loans are not in a position to repay them and requested SLBC [State Level Bankers’ Committee] to extend relief to the affected persons.
- The order said chapter No. 7 of the “Reserve Bank of India (Relief Measures by Banks in Areas Affected by Natural Calamities) Directions, 2018”, related to “Riots and Disturbances”, applies to the State.
- Therefore, the Governor of Manipur hereby declares that the whole State of Manipur is being affected by violences/riots leading to economic activities and livelihood of the majority of the general public being affected,” and relief measures may be taken up under the RBI’s guidelines.
Reserve Bank of India (Relief Measures by Banks in Areas Affected by Natural Calamities) Directions, 2018
- It has been issued to banks in regard to matters relating to relief measures to be provided in areas affected by natural calamity.
- The provisions of these Directions shall apply to every Scheduled Commercial Bank (including Small Finance Banks (SFBs) and excluding Regional Rural Banks (RRBs)) licensed to operate in India by Reserve Bank of India.
- The developmental role assigned to the commercial banks including Small Finance Banks warrant their active support in reviving the economic activities of those affected by the occurrence of a natural calamity.
- In terms of the National Disaster Management Framework, there are two funds constituted viz. National Disaster Response Fund (NDRF) and State Disaster Response Fund (SDRF) for providing relief in the affected areas.
- This framework currently recognizes 12 types of natural calamities viz. cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloud burst, pest attack and cold wave/frost.
- Out of these 12, for 4 calamities i.e. drought, hailstorms, pest attack and cold wave/frost, the Ministry of Agriculture is the nodal point and for the remaining 8, the Ministry of Home Affairs is the nodal ministry to make the necessary administrative arrangements.
- The role of the scheduled commercial banks including Small Finance Banks (SFBs) is to provide relief measure through rescheduling existing loans and sanctioning fresh loans as per the emerging requirement of the borrowers.
- To enable banks to take uniform and concerted action expeditiously, these directions are issued covering four aspects viz. Institutional Framework, Restructuring of Existing Loans, Providing Fresh Loans and Other Ancillary Relief Measures.
Institutional framework:
- All Divisional/Zonal Offices and branches of Scheduled Commercial/Small Finance banks should be familiar with these standing instructions.
- These standing instructions will immediately come to force after the district/state authorities put in place the requisite declaration.
- It is essential that these instructions should also be made available to the State Government authorities and all the District Collectors so that all concerned are aware about the action that should be taken by the concerned authorities in the affected area.
- The Divisional/Zonal Managers of scheduled commercial/SF banks must be vested with certain discretionary powers to avoid the need to seek fresh approval from their Central Office regarding the line of action decided by the District Consultative Committee/State Level Bankers’ Committee.
Declaration of Natural Calamity:
- It is recognised that declaration of a natural calamity is in the domain of the Sovereign (Central / State Governments).
- The inputs received from the State Governments reveal that there are no uniform procedures being followed for declaration of natural calamity and issue of declarations / certificates.
- These declarations/certificates are called by different names such as Annewari, Paisewari, Girdawari, etc. in different States.
- Nevertheless, the common thread to extend relief measures including reschedulement of loans by banks, is that the crop loss assessed should be 33% or more.
- For assessing this loss, while some States are conducting crop cutting experiments to determine the loss in crop yield, some others are relying on the eye estimates/visual impressions.
- In both the cases, however, DCCs/SLBC have to satisfy themselves fully that the crop loss has been 33% or more before acting on these pronouncements.
Applicability of the guidelines in case of riots and disturbances:
- Whenever RBI advises the banks to extend rehabilitation assistance to the riot/ disturbance affected persons, the aforesaid guidelines may broadly be followed by banks for the purpose.
- It should, however, be ensured that only genuine persons, duly identified by the State Administration as having been affected by the riots/ disturbances, are provided assistance as per the guidelines.
- In the event of large scale riots where most parts of the State/Area are affected and the State Administration is not in a position to identify the riot/disturbance affected persons and subject to SLBC’s specific decision, the onus of identifying ‘genuine persons’ will rest with banks.
- If the DCC is satisfied that there has been extensive loss to life and property on account of the riots/ disturbances, the relief as per the above guidelines may be extended to the people affected by the riots/ disturbances. In certain cases, where there are no District Consultative Committees, the District Collector may request the convener of the State Level Bankers’ Committee of the State to convene a meeting of the bankers to consider extension of relief to the affected persons. The report submitted by the Collector and the decision thereon of DCC/ SLBC may be recorded and should form a part of the minutes of the meeting. A copy of the proceedings of the meeting may be forwarded to the concerned Regional Office of the Reserve Bank of India.
2. LAB-GROWN MEAT
TAG: GS 3: SCIENCE AND TECHNOLOGY
THE CONTEXT: Recently, two California-based companies were cleared to make and sell cell-cultivated chicken in the country in what is being hailed by stakeholders in the concept as a major step forward for reducing the carbon emissions associated with the food industry worldwide.
EXPLANATION:
- Cell-cultivated chicken” that’s the official name of chicken meat that is grown in a laboratory for human consumption.
- The two companies, Good Meat and Upside Foods, have received the U.S. government’s approval to make and sell their cell-cultivated chicken.
- The U.S. Food and Drug Administration was involved in the regulatory process but didn’t technically approve the products because the process doesn’t require an approval.
- In such cases, a company in question is required to conduct a safety assessment of its own facilities and the veracity of its production process. Sometimes, in order to boost consumer and investor confidence, it may consult with the FDA.
- At the end of this process, if the FDA is satisfied by the company’s submissions, it will send a “no questions” letter, signalling the regulatory body’s tacit approval.
- S. Department of Agriculture finalised the label “cell-cultivated chicken” for the product being sold, and provided a ‘grant of inspection’, which is required to operate production facilities.
What is cell-cultivated chicken?
- To make cell-cultivated meat, these two companies isolate the cells that make up this meat, and put them in a setting where they have all the resources they need to grow and make more copies of themselves. These resources are typically nutrients, fats, carbohydrates, amino acids, the right temperature, etc.
- The ‘setting’ in which this process transpires is often a bioreactor (also known as a ‘cultivator’), a sensor-fit device – like a container – that has been designed to support a particular biological environment. Because of the techniques involved, producing meat in this way is also called cellular agriculture.
- Once these cells have become sufficiently large in number, which takes around two to three weeks in Upside’s process, they resemble a mass of minced meat. They are collected and then processed, with additives to improve their texture and/or appearance, and are destined for various recipes.
Why was cell-cultivated meat created?
- Its proponents have advanced the following arguments in favour of developing lab-grown meat: emissions, land use, prevention of animal slaughter, food security, and customisation.
- The first two are related to climate mitigation. The FAO has estimated that global livestock is responsible for 14.5% of all anthropogenic greenhouse-gas emissions.
- Of this, the production of beef as a commodity accounted for 41%, whereas chicken meat and eggs accounted for 8%.
What are the challenges?
- Consumer acceptance Perfectly substituting animal meat with alternative meat requires the latter to match the former’s taste, texture, and appearance, and cost. Researchers have achieved some success on these counts but it remains a work in progress, especially as more meats acquire alternative counterparts.
- For the cellular cultivation process, researchers require high quality cells to begin with (plus information about how different cell types contribute to the ‘meat’), a suitable growth-medium in which the cells can be cultured, plus other resources required to maintain the quality of the final product.
3. THE INTERNATIONAL CENTRE FOR INTEGRATED MOUNTAIN DEVELOPMENT (ICIMOD)
TAG: PRELIMS PERSPECTIVE
THE CONTEXT: A new report released by the International Centre for Integrated Mountain Development (ICIMOD) warned Rivers in eastern and northeastern India including the Brahmaputra, Ganga and Teesta will, like their counterparts in the rest of the Hindu Kush Himalayas (HKH), see a rapid increase in stream flow followed by water scarcity.
EXPLANATION:
- The report Water, ice, society, and ecosystems in the Hindu Kush Himalaya pointed out that glaciers in the HKH region “can lose up to 80 per cent of their current volume by the end of the century (with) Himalayan glaciers disappeared 65 percent faster in the 2010s than in previous decade”.
- As a consequence, major rivers in the Himalayas including those in eastern and northeastern India are set to suffer.
- The report also observes that “floods and landslides are projected to increase over the coming decades” and warns that the effects on fragile mountain habitats may turn out to be “particularly acute”.
- The Eastern Himalayas will be affected as well (like the western part of the range), with rivers like Brahmaputra and Teesta getting their base flow from glacial melt reduced in the long-run.
- United Nations Secretary-General Antonio Guterres earlier pointed out that the flow in major Himalayan rivers including the Indus, Ganges, and Brahmaputra, all critical for India, may get significantly reduced as glaciers and ice sheets are expected to recede in the future due to global warming.
- As glaciers and ice sheets continue to recede over the coming decades, major Himalayan rivers like the Indus, the Ganges, and Brahmaputra will feel the impact seeing their flows reduced.
- The Eastern Ganga Region (ERG) with its development deficit context and low capacity is already becoming a crucible of hazards: Erratic and extreme rainfall, extreme floods and landslides, droughts, low flows, and scorching wet bulb heat.
- Eastern Himalayas, also called lesser Himalayas, have less glaciers compared to their western counterparts. Hence, rivers in the region get less contribution from such glaciers; and are less likely to be affected overall.
- Still, climate change can impact rivers if the snow and glacial meltwater get reduced in the region during March, which is the dominant contribution during that time.
- Tributaries play a major role in augmenting the flow of rivers in the region; and hence glacial melting impacts would be less compared to the western part of Himalayas.
- There is an immediate increase in water flow in major rivers due to melting; followed by long term water scarcity.
- The HKH region, harbours the highest mountain ranges in the world. It also contains the largest volume of ice on earth outside of the polar areas and is called “Asia’s water tower”.
- It added that “ice and snow in the Hindu Kush Himalaya are an important source of water for 12 rivers that flow through 16 countries in Asia, providing freshwater and other vital ecosystem services to 240 million people in the mountains and a further 1.65 billion downstream”.
- This report is important but the time has come to go beyond generalised reports and become specific. For example, it would have been great if the report could have told which areas of Himalayas are expected to be affected how much, so that specific combative strategies can be formulated,” expressed a senior water expert of South Asia.
International Centre for Integrated Mountain Development (ICIMOD):
- ICIMOD is an intergovernmental knowledge and learning centre that develops and shares research, information, and innovations to empower people in the eight regional member countries of the HKH – Afghanistan, Bangladesh, Bhutan, China, India, Myanmar, Nepal, and Pakistan.
- It serve the region through information and knowledge generation and sharing to find innovative solutions to critical mountain problems.
- It bridge science with policies and on-the-ground practices.
- It provide a regional platform where experts, planners, policy makers, and practitioners can exchange ideas and perspectives towards the achievement of sustainable mountain development.
- It facilitate knowledge exchange across the region, help customize international knowledge and tailor it to the region’s needs, and bring regional issues to the global stage
4. ONE DISTRICT ONE PRODUCT(ODOP)
TAG: PRELIMS PERSPECTIVE
THE CONTEXT: Centre allocates 145 Crores rupees to Nagaland for the purpose of Unity Mall in Dimapur. Efforts such as Krishi UDAN scheme, expanding railway connectivity to be undertaken to improve logistics facilities for ODOP products from Nagaland.
EXPLANATION:
- ODOP Sampark event was organized to create awareness regarding the efforts of DPIIT, Ministry of Commerce and Industry, Govt of India through its two flagship Initiative One District One Product (ODOP) and PM Gati Shakti (Logistics).
- Organic certification will play major role in insuring better access for Indian products in foreign markets and help gain better prices for farmers.
- The documentation for the organic certification for over 15 chili farmers from Kohima was done during the workshop and the remaining will be completed soon after the verification of their documents.
- Efforts will be undertaken to improve the logistics facilities for ODOP products from Nagaland like chili, turmeric, kiwi, pineapple, etc, through the Krishi UDAN scheme, expanding railway connectivity, etc.
- The One District One Product Awards have been instituted by DPIIT to acknowledge the extraordinary work done by States/ UTs, Districts, and Indian Missions Abroad, for the economic development of the State and contribute towards the realization of the Hon’ble Prime Minister’s vision of Atmanirbhar Bharat through the ODOP approach. The Awards will be launched on 25th June 2023 in the Rashtriya Puraskar Portal.
- PM GatiShakti is a transformative approach which was launched on October 13th, 2021 by the Hon’ble Prime Minister for planning & building Next Generation Infrastructure in the country, thereby promoting multimodal logistics connectivity to improve both Ease of Living as well as Ease of Doing Business.
ODOP:
- The ODOP initiative is a visionary program aligned with the Hon’ble Prime Minister’s vision of fostering inclusive development across all districts of India.
- The objective is to identify and promote a distinct product from each district, thereby creating a niche identity for them. By focusing on these chosen products, ODOP aims to drive holistic socio-economic growth and improve market accessibility.
- Over 1000 products have been selected from all 761 districts of the country. The products are selected by the State Government in consultation with district administration.
- The ODOP initiative covers a wide range of products spanning textiles, agricultural produce, processed goods, pharmaceuticals, and industrial items. The aim is to promote and harness the diverse expertise present in different sectors and communities across the country.
- By identifying and addressing challenges throughout the supply chain, enhancing market reach, and providing dedicated support to producers, ODOP aims to transform districts into prominent market hubs for their chosen products.
- Through this comprehensive approach, ODOP is set to empower districts, promote entrepreneurship, and contribute to the overall economic growth and prosperity of the nation.
5. PRADHAN MANTRI MATSYA SAMPADA YOJANA
TAG: SCHEMES
THE CONTEXT: Pradhan Mantri Matsya Sampada Yojana Review Meeting for North Eastern Region Review meeting focuses around State Annual Action Plan 2023-24, utilisation of central funds, release of State share, SNA related issues.
EXPLANATION:
- Fisheries sector plays an important role in the Indian economy.
- It contributes to the national income, exports, food and nutritional security as well as the employment generation. The sector provides livelihood for more than 2.8 crore fishers and fish farmers at primary level and several more along the fisheries value chain.
- It is also a major source of income for a large proportion of the country’s economically disadvantaged population.
- As PMMSY enters its fourth year of implementation, the Department plans to expedite the pace of implementation.
- It is pertinent to note that no such specific allocation has been done for NER states before 2014. The sanctioned activities comprised of new ponds, integrated fish farming, ornamental fisheries, biofloc, RAS, hatcheries, brood banks, feed mills, etc.
Pradhan Mantri Matsya Sampada Yojana
- The Pradhan Mantri Matsya Sampada Yojana (PMMSY) aims to enhance fish production to 220 lakh metric tons by 2024-25 from 137.58 lakh metric tons in 2018-19 at an average annual growth rate of about 9%.
- “PMMSY – A scheme to bring about Blue Revolution through sustainable and responsible development of fisheries sector in India.
- PMMSY will create a conducive environment for private sector participation, development of entrepreneurship, business models, promotion of ease of doing business, innovations and innovative project activities including start-ups, incubators etc. in fisheries sector. T
- PMMSY being a fisher centric umbrella scheme, fishers, fish farmers, fish workers and fish vendors are the key stakeholders in the developmental activities envisaged and enhancement of their socio-economic status is one the core objectives of this scheme.
- The Fisheries Minister said that about 42% of the total estimated investment of the PMMSY is earmarked for creation and upgradation of fisheries infrastructure facilities. Focus areas include Fishing Harbours and Landing Centers, Post-harvest and Cold Chain Infrastructure, Fish Markets and Marketing Infrastructure, Integrated Modern Coastal Fishing Villages and Development of Deep-sea Fishing.
- Besides creating critical fisheries infrastructure by attracting private investments in fisheries sector, the scheme plans to reduce post-harvest losses from the present high of 25% to about 10% by modernizing and strengthening value chain.
- Under the Swath Sagar plan, activities envisaged with a view to modernize the fisheries sector include promotion of Bio-toilets, Insurance coverage for fishing vessels, Fisheries Management Plans, E-Trading/Marketing, Fishers and resources survey and creation of National IT-based databases.
- Government will register “Sagar Mitra” and encourage formation of Fish Farmers Producer Organizations (FFPOs) to help achieve the PMMSY goals. Fisheries Extension Services Centers will be set up in private space to create job opportunities to young professionals.
