1. BRAZIL GLOBAL ENVIRONMENT FACILITY (GEF) MEET

TAG: GS 3: ENVIRONMENT

THE CONTEXT: At the 64th Global Environment Facility (GEF) council meeting in Brazil, the governing body approved the disbursement of $1.4 billion to accelerate efforts to tackle the climate, biodiversity and pollution crises. Over half a billion dollars set aside for work on biodiversity.

EXPLANATION:

• Adequate funds are needed to meet the 4 goals & 23 targets set under the Kunming-Montreal biodiversity framework by 2030.
• Of this, $653 million has been set aside for biodiversity and this would be used to help countries update their National Biodiversity Strategies and Action Plans, biodiversity programmes and meet the targets of the Kunming-Montreal Global Biodiversity Framework (GBF) agreed in December.
• This is the second work program of the GEF-8 funding period, which runs from 2022 and 2026.
• The funding package includes support for 136 countries and has a significant focus on action to address species and habitat loss, in line with the GBF.
• Keeping this in mind, 47 per cent of the funds have been earmarked for work on biodiversity, followed by 16 per cent for climate change, 12 per cent for land degradation, 11 per cent for international waters and 6 per cent for chemicals and waste.
• The Latin America and the Caribbean region is getting the most of the funds, followed by the Africa region. Out of the 18 implementing agencies for GEF; the United Nations Development Programme is getting the maximum funds followed by the UN Environment Programme and the Food and Agriculture Organization.
• At the 15th Conference of Parties to the UN Convention on Biological Diversity, it was decided that a new trust fund, GBF, would be put in place to run the projects under the framework.
• Approval to establish the GBF fund with the objective to ratify it at the upcoming GEF Assembly in August 2023 will now ensure “adequacy, predictability and timely flow of funds” in the implementation of the Kunming-Montreal biodiversity framework.
• Adequate funds are needed as there are merely eight years to meet the four goals and 23 targets set under the Framework.

 Global Environment Facility (GEF):

• Global Environment Facility (GEF) is a family of funds dedicated to confronting biodiversity loss, climate change, pollution, and strains on land and ocean health.
• Its grants, blended financing, and policy support helps developing countries address their biggest environmental priorities and adhere to international environmental conventions.
• Over the past three decades, the GEF has provided more than $22 billion and mobilized $120 billion in co-financing for more than 5,000 national and regional projects.
• GEF funds are available to developing countries seeking to meet the objectives of international environmental agreements.
• Support is provided to government agencies, civil society organizations, private sector companies, research institutions, and other partners to implement projects and programs related to environmental conservation, protection, and renewal.
• The GEF’s governing structure is organized around an Assembly, Council, Secretariat, 18 implementing agencies, a Scientific and Technical Advisory Panel, and the Independent Evaluation Office.
• The Council, the GEF’s main governing body, comprises 32 members appointed by constituencies of member countries.

2. NEW CERTIFICATION SCHEME FOR ANTIBIOTICS MANUFACTURING

TAG: GS 2: HEALTH ISSUES

THE CONTEXT: A new certification scheme to promote responsible antibiotics manufacturing was launched in India on June 26, 2023, by British Standards Institute (BSI) and AMR Industry Alliance.

EXPLANATION:

• In 2022, The AMR Industry Alliance and BSI came up with a set of Antibiotic Manufacturing Standards and launched the certification to ensure their implementation.
• AMR Industry Alliance, one of the largest private sector coalitions that provide long-term solutions to antimicrobial resistance, engaged BSI, a business improvement and standards company, to provide expert services for the development of this standard.
• Responsible antibiotic production is critical to encouraging sustainable drug production.
• This also addresses growing environmental concerns about antimicrobial resistance (AMR) by limiting the release of antibiotic residues into waterways through industrial waste, which contributes significantly to AMR, particularly the environmental aspect of it.
• Antibiotic residues enter waterways from various sources, including hospital wastewater, farms, sewage systems and others. While antibiotic overuse in humans and animals is considered the primary cause of AMR, the environmental aspect of AMR is gaining global attention.
• The certification is the first of its kind, with a third-party validation process, to monitor environmental concerns in the antibiotic manufacturing process. The certification helps in determining whether environmental and waste control procedures are in place throughout the manufacturing process.
• This intends to ensure that the concentration of antibiotics in waste streams is below a threshold that does not result in the emergence of AMR in the environment. During the development of this certification, several manufacturers have expressed their willingness to self-regulate the processes.
• A manufacturer should provide effective environmental management and a wastewater treatment system that minimises the discharges of active pharmaceutical ingredients to obtain certification. The certificate, once issued, is valid for three years. Annual surveillance is carried out to ensure ongoing maintenance.
• Antibiotic concentration at the release point must be less than the predicted no-effect concentration the level at which the chemical has no toxic effect and will not promote AMR to meet the certification standard.
• Waste should be minimised and strictly controlled every time production is run, so we want to create a robust environmental management system,” said Steve Brooks, an advisor to the AMR Industry Alliance.

ANTIMICROBIAL RESISTANCE (AMR):

• Antimicrobial resistance (AMR) threatens the effective prevention and treatment of an ever-increasing range of infections caused by bacteria, parasites, viruses and fungi.
• AMR occurs when bacteria, viruses, fungi and parasites change over time and no longer respond to medicines making infections harder to treat and increasing the risk of disease spread, severe illness and death. As a result, the medicines become ineffective and infections persist in the body, increasing the risk of spread to others.
• Antimicrobials – including antibiotics, antivirals, antifungals and antiparasitics – are medicines used to prevent and treat infections in humans, animals and plants. Microorganisms that develop antimicrobial resistance are sometimes referred to as “superbugs”.
• Increased use and misuse of antimicrobials and other microbial stressors, such as pollution, create favourable conditions for microorganisms to develop resistance both in humans and the environment.
• Bacteria in water, soil and air for example, can acquire resistance following contact with resistant microorganisms. Human exposure to AMR in the environment can occur through contact with polluted waters, contaminated food, inhalation of fungal spores, and other pathways that contain antimicrobial resistant microorganisms.

What is the impact of AMR?

• The World Health Organization (WHO) lists AMR among top 10 threats for global health. Antimicrobial resistance threatens human and animal health and welfare, the environment, food and nutrition security and safety, economic development, and equity within societies.
• Antimicrobial resistance in mycobacterium tuberculosis, malaria parasites, viruses, and HIV is becoming a reality that could increase human suffering.
• It could also deal a huge blow to the world economy due to productivity losses, increased healthcare costs and a rise in poverty. Even if it is a global crisis, poverty, lack of sanitation and poor hygiene make AMR worse. Also, AMR disproportionately impacts Low-Income Countries and Lower-Middle-Income Countries. AMR is thus an equity issue too.

Management and response to AMR:

• Environment plays a key role in development, transmission and spread of AMR. Therefore, the response must be based on a One Health approach, recognizing that humans, animals, plants and environment are interconnected and indivisible, at the global, regional, and local levels from all sectors, stakeholders, and institutions.
• Prevention is at the core of the action needed to halt the emergence of AMR and environment is a key part of the solution

3. US INDIA DIGITAL TRADE

TAG: GS 2: INTERNATIONAL RELATIONS

THE CONTEXT: U.S. industry body CCIA backed by the likes of Google and Meta has flagged India’s “protectionist” approach to US digital services providers while also describing a set of other policies as trade barriers.

EXPLANATION:

• During Prime Minister’s U.S. state visit, cooperation on technology emerged as a prominent talking point and yielded some of the most substantive outcomes.
• However, digital trade is also the area where some of the biggest U.S. tech companies have recently flagged multiple policy hurdles, including “India’s patently protectionist posture”.
• Earlier this year, the Washington D.C.-headquartered Computer & Communications Industry Association (CCIA), with members like Amazon, Google, Meta, Intel, and Yahoo, flagged 20 policy barriers to trading with India in a note titled “Key threats to digital trade 2023”.

What is the current status of India-U.S. technology trade?

• Notably, in FY2023, the U.S. emerged as India’s biggest overall trading partner with a 7.65% increase in bilateral trade to $128.55 billion in 2022-23. However, digital or technology services did not emerge as one of the sectors at the forefront of bilateral trade.
• The CCIA points out in its report that “despite the strength of the U.S. digital services export sector and enormous growth potential of the online services market in India, the U.S. ran a $27 billion deficit in trade in digital services with India in 2020”.
• In the recent past, however, the two countries have been ramping up their tech partnership through moves like the Initiative on Critical and Emerging Technology (iCET).
• Under the iCET, India and the U.S. agreed to cooperate on critical and emerging technologies in areas including artificial intelligence, quantum computing, semiconductors and wireless telecommunication.
• Additionally, under the iCET, India and the U.S. also established a Strategic Trade Dialogue with a focus on addressing regulatory barriers and aligning export controls for smoother trade and “deeper cooperation” in critical areas.
• The joint statement released on the first day of PM’s visit, also mentions the ambitious MoU signed between the two states on the Semiconductor Supply Chain and Innovation Partnership, which includes a combined investment valued at $2.75 billion.
• On the telecommunications front, the two leaders launched two Joint Task Forces to focus on the Open RAN network and research and development in 5G/6G technologies.
• Besides, the two countries are bullish on future tech such as AI and Quantum Computing, having put in place the Quantum Coordination Mechanism and a joint fund for the commercialization of Artificial Intelligence

What taxation measures has the CCIA raised concerns about?

• One of the taxation tools that U.S. tech firms have long taken exception to is the expanded version of the “equalisation levy” that India charges on digital services.
• India in 2016, with the goal of “equalising the playing field” between resident service suppliers and non-resident suppliers of digital services imposed a unilateral measure to levy a 6% tax on specific services received or receivable by a non-resident not having a permanent establishment in India, from a resident in India who carries out business.
• In 2020, the Centre came out with the ‘Equalisation Levy 2.0’, which imposes a 2% tax on gross revenues received by a non-resident “e-commerce operator” from the provision of ‘e-commerce supply or service’ to Indian residents or non-resident companies having a permanent establishment in India.
• The equalisation levy, when it was first introduced in 2016, led to double taxation and further complicated the taxation framework. Besides, it also raised questions of constitutional validity and compliance with international obligations.
• The 2020 amendment again led the levy to become sweeping and vague in its scope. Further, in 2021, instead of introducing an amendment, the government issued a “clarification” to say that the expression ‘e-commerce supply or service’, inter alia, includes the online sale of goods or the online provision of services or facilitation of the online sale of goods or provision of services.
• The CCIA argues that the government decided to put the levies in place and continue their imposition unilaterally even as 135 other countries await clarity on an Organisation of Economic Cooperation and Development (OECD) agreement to overhaul the global tax system. This deal would ask countries to remove all digital services tax and other similar measures and to commit to not introduce such measures in the future.

What about India’s IT Rules 2021?

• The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, has been flagged by the consortium of foreign tech firms under the some of the most “problematic policies”.
• The IT Rules place compliance burden on social media intermediaries (SMIs) and platforms with five million registered users or more, which means several U.S. firms end up falling under the ambit.
• Some points of concern raised are the “impractical compliance deadlines and content take-down” protocols — the IT Rules require intermediaries to take down content within 24 hours upon receiving a government or court order. The platforms are also required to appoint a local compliance officer.
• Moreover, with the amendments made to the Rules late last year, SMIs are now obligated to remove, within 72 hours, information or a communication link in relation to the six stipulated prohibited categories of content as and when a complaint arises.
• There is also major criticism against the government’s institution of the three-member Grievance Appellate Committees (GAC), which will hear user complaints about the decisions of SMIs regarding their content-related issues and have the power to reverse those decisions.
• Additionally, in January 2023, the Ministry of Electronics and IT (MeitY) added another layer of compliance, requiring platforms to make reasonable efforts to prevent the publication of content fact-checked as fake or false by the Press Information Bureau (PIB).

What are the criticisms of the new draft of the data protection law?

• India, with more than 759 million active internet users representing more than 50% of its population is a gold mine for data.
• The country is also planning to become a hub for data processing, wanting to host data centres and cloud service providers.
• This means that India’s policy on the flow of data across borders will impact the same on a global level, as was seen with the European Union’s landmark General Data Protection Regulation (GDPR).
• While there are various arguments in favour of data localisation requirements by governments, such requirements also tend to significantly increase operating costs of companies and can be seen as discriminatory by foreign companies.

4. SUGAR SUBSIDIES AT WTO

TAG: GS 3: ECONOMY

THE CONTEXT: India is expected to negotiate with Brazil to resolve a long-standing dispute about sugar subsidies accorded by India. Brazil had submitted a complaint in 2019.

EXPLANATION:

• Ministry of Commerce and Industry is coordinating with the concerned departments to arrive at possible alternatives. The same approach has been adopted with other complainants in the dispute.
• Back in 2019, the South American nation had submitted a complaint against India alleging that the latter’s according of sugar subsidies was inconsistent with global trade rules.
• In February 2019, Brazil, Australia and Guatemala sought consultations with India, concerned about domestic support measures to agricultural producers of sugarcane and sugar.
• They alleged that India for five years, from 2014-15 to 2018-19, provided domestic support in excess of the permissible 10% of the total value of production thus, inconsistent with the norms laid out under the organisation’s Agreement on Agriculture.
• The countries argued that the minimum prices of sugarcane and sugar, specifically fair and remunerative prices (FRP) alongside specific states enforcing higher minimum prices, incentivised Indian sugarcane farmers. This led to increased domestic production of sugarcane and sugar.
• It contended that with production exceeding domestic demand, and ensuing increases in sugar stocks, the government also intervened in the market with assistance programmes, thereby facilitating lowered prices for the commodity in the global market.
• The complainant also argued against India’s mill-specific Minimum Indicative Export Quota (MIEQ) wherein sugar mills must export an allocated amount of sugar by the end of each season (October-September).
• It alleged that certain support measures were dependent on compliance with the MIEQ, or otherwise dependent on export performance. MIEQ allocates the minimum quantity of sugar which must be exported and distributes that quantity among individual sugar mills operating in India.
• India is the second-largest producer of sugar in the world behind Brazil, which also is the largest exporter.
• WTO constituted a panel to study the allegations in October 2019, which submitted its report in December 2021.

What did the WTO conclude?  

• The multilateral trade organisation held that India was acting inconsistently with its obligations under Article 7.2 (b) of the Agreements on Agriculture (AoA) as far the domestic support was concerned. This article stipulates that members cannot provide support in excess of the relevant de minimis standards.
• It held that the ‘price support’ would entail “assistance from a government or other official body in maintaining prices at a certain level regardless of supply or demand.” In FRP, while the prices may appear to be paid by the mills, they are set by the government, it said.
• The WTO asked India to withdraw its exports subsidies within 120 days from the circulation of the report. It also sought that the country withdraw the proscribed subsidies (as per the multilateral organisation’s rules) meant for production assistance, buffer stock, marketing and transportation along with the duty-free import authorisation (DFIA) scheme.
• The report concluded that India was providing “lump sum assistance” for expenses emanating on account of sugar towards maximum admissible export quality or MAEQ (which works as a marketing assistance listing upper limit for exports) of sugar mills for the sugar season 2019-20. It broadly covered marketing including handling, quality upgradation, debagging and re-bagging and other processing costs.

What was India’s defence?  

• Following the report in December 2021, the Indian government stated the panel had made “certain erroneous findings” about the schemes meant to support sugarcane producers and exports. It held the findings of the panel were “completely unacceptable to India”, adding, “The panel’s findings are unreasoned and not supported by the WTO rules.
• It contended that FRP and state-advised prices do not constitute ‘applied administrative prices’, that is, prices for agricultural products determined by administrative actions of the government and not market forces.
• It was before the consultations that India had argued that market price support could only exist when the government or its agents pay or procure the product. Thus, it would be incorrect to conclude that India provided any market price support to sugarcane producers, it said.

Agreements on Agriculture (AoA)

• The domestic support systems in agriculture are governed by the Agreement on Agriculture (AoA), which entered into force in 1995 and was negotiated during the Uruguay Round (1986-1994).
• The long-term goal of the AoA is to establish a fair and market-oriented agricultural trading system and to initiate a reform process through the negotiations of commitments on support and protection, and through the establishment of strengthened and more operationally effective rules and discipline.

5. MINERALS SECURITY PARTNERSHIP

TAG: PRELIMS PERSPECTIVE

THE CONTEXT: India joins the critical minerals club. India’s inclusion in the partnership will help its transition to clean energy & pave way for other countries to be part of the critical minerals club.

EXPLANATION:

• India became a part of the coveted critical minerals club the Mineral Security Partnership (MSP) headed by the United States.
• MSP is a strategic grouping of 13 member states including Australia, Canada, Finland, France, Germany, Japan, the Republic of Korea, Sweden, the United Kingdom, US, the European Union, Italy and now India.
• It aims to catalyse public and private investment in critical mineral supply chains globally.
• The proposal to onboard India comes after strong diplomatic engagements and push for joining the strategic partnership to secure and build a resilient supply chain for critical minerals.
• India is already a member of the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development, which supports the advancement of good mining governance.
• India’s inclusion in the club is vital for India to fulfill its ambition of shifting towards sustainable mobility through large, reliable fleets of electric public and private transport. Securing the supply chain of critical minerals will also provide the country with the necessary push towards a concerted indigenous electronics and semiconductor manufacturing.
• The inclusion will also pave the way for equitable sharing of resources across the globe. The MSP is elitist in its very idea of formation and induction of members. Countries like Indonesia, Vietnam, the Democratic Republic of Congo, which have abundant reserves of critical minerals are not part of this strategic grouping formed by US.
• The diplomatic strength India possesses can create space for other countries to be part of the partnership and reduce their dependence on China by building a robust and reliable supply chain of raw materials needed for the clean energy transition, something that many economies across the world have been hoping for.
• With heavy demand and the supply chain irregularities across the global mineral markets, various strategic groupings or international agreements have been started by major players to foster international partnerships, and to ensure a reliable and secure supply chain. Due to geopolitical uncertainties, unfavourable rising of prices, COVID-19 pandemic and the ongoing Russia-Ukraine war have resulted in the supply chain disruptions across the globe for these critical minerals.
• Over the past decade, the G7 and G20 member countries, including US, UK, EU, Canada and Australia have declared their critical minerals lists and are also the part of several bilateral, plurilateral and multilateral agreements, specifically for the governance involving critical minerals and their strategic importance.
• Cobalt, graphite, lithium, manganese, nickel and rare earth elements are these common strategic mineral resources that are demand-intensive due to their strategic uses in wind turbines, batteries of electric vehicles and other critical emerging technologies for green transition.
• Recently, the US and the UK signed the Atlantic Declaration to begin negotiations on a critical minerals agreement, which would allow some UK firms to access tax credits available under the US Inflation Reduction Act.
• With India pushing for an indigenous development of emerging technologies in the clean energy sector, scaling up the manufacturing of the technologies, including solar panels, wind turbines, batteries and electric vehicles will result in significant demand for and dependence on the supply of a range of minerals for the foreseeable future.
• India and Australia have already signed the Critical Minerals Investment Partnership — a major milestone in working towards investment in critical minerals projects to develop supply chains between the two countries.
• Investments under the partnership will seek to build new supply chains underpinned by critical minerals processed in Australia that will help India’s plans to lower emissions from its electricity network and become a global manufacturing hub, including for electric vehicles.
• India’s entry into MSP will foster several bilateral, plurilateral and multilateral agreements, specifically for the governance involving critical minerals and their strategic importance among the member countries.

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.

1. NEW COLLECTIVE QUANTIFIED GOAL ON CLIMATE FINANCE

TAG: GS 3: ENVIRONMENT

THE CONTEXT: The recently-concluded Bonn climate conference in Germany, expected to outline the political agenda for the crucial end-of-year Conference Of Parties-28 (COP28) in Dubai, was critical for reviewing and reforming the climate finance architecture.

EXPLANATION:

What is the NCQG?

• A commitment of ‘$100 billion per year till 2020’ to developing nations from developed countries was a target set at the Conference of Parties (COP) in 2009.
• But estimates since then show addressing climate change may cost billions, and even, trillions of dollars.
• Therefore, the 2015 Paris Climate Agreement agreed on setting a New Collective Quantified Goal (NCGQ) for climate financing prior to 2025 a reference point which accounts for the needs and priorities of developing nations.
• The NCGQ is thus, termed the “most important climate goal”. It pulls up the ceiling on commitment from developed countries, is supposed to anchor the evolving needs and priorities of developing countries based on scientific evidence and should respond “to the ever-increasing sums of funding necessary for Loss and Damage in response to failed and/or delayed financial support.
• It is stated under paragraph 53 of Decision 1/CP.21 that “developed countries intend to continue their existing collective mobilization goal through 2025 in the context of meaningful mitigation actions and transparency on implementation.” All actors, from Parties to non-state stakeholders, must work together to create a bolder commitment to climate finance with the necessary tools and capacities to reduce adaptation and mitigation gaps and avoid any further loss and damage (L&D), in aid of climate-resilient development.

Guiding principles

• The formulation and operationalization of the NCQG need to be bound within the UNFCCC and the Paris Agreement, anchored on climate justice.

• The new goal must be grounded on the long-established principles of the “polluter pays”, common but differentiated responsibilities and respective capacities, and intergenerational justice. It must be inclusive of the needs and priorities of developing countries and the most vulnerable sectors and communities (from both developed and developing nations), using the lens of gender, youth, indigenous peoples, and other highly-vulnerable sectors.
• It should also be primarily based on national climate policies and plans, such as the Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs). All established financial glows must abide by Article 2.1c of the Paris Agreement, where Parties agreed to “making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.”

• The NCQG must be regularly updated to reflect the changing needs of developing countries and the most vulnerable sectors.

• Climate finance is never static, as risks, vulnerabilities, social, economic, and environmental conditions, development goals, and corresponding needs for adaptation and mitigation evolve as a response to GHG emissions, climate change impacts, and among themselves.
• The quantitative and qualitative characteristics of the new goal to be determined by 2025 must reflect the dynamic nature and interlinkages between and among impacts, solutions, and stakeholders relevant to developing countries, with subsequent finance goals being updated to cover changes to these factors and actors.

Structure and components

• The NCQG must be established as a matrix that categorizes targets according to the three pillars of climate action. These pillars are mitigation, adaptation, and L&D, with a specific list of quantitative and qualitative sub-goals listed under each of these components that differentiates needs for direct (i.e., project funding) and indirect (i.e., investments) modes of finance.
• Gaps, needs, and priorities must be based on what developing countries indicated in their policy documents under the UNFCCC, including NDCs, NAPs, and National Communications. With the understanding that current metrics for mitigation are mostly quantitative and those for adaptation are qualitative, the resulting formats for reporting data under the NCQG must reflect these characteristics.
• The funding allocated for adaptation and resilience must be at least half of the NCQG.
• Despite Article 9.4 of the Paris Agreement stating the need for a financing balance between mitigation and adaptation, the latter has been underfunded. The lack of adaptation finance places billions of people, especially those in Least Developed Countries and Small-Island Developing States, at even higher climate risk and worsens vulnerabilities that perpetuates climate injustices. Developed countries must commit to ensuring that at least 50% of the new goal will be dedicated to adaptation, with this percentage evolving in subsequent settings of the NCQG depending on global and national circumstances related to adaptation and mitigation.
• The NCQG must include allocated finance for averting or minimizing loss and damage. L&D must be officially recognized at COP27 as the third pillar of climate action and finance, separate from adaptation and mitigation, in words as much as in actions. Key to this call is the establishment of a L&D finance mechanism at COP27, which is vital to the survival of the victims of sudden onset disasters and slow onset events.
• Aligned with the justice and rights-based principles that are also reflected within the UNFCCC and the Paris Agreements, modalities under this finance facility must be grants-based, needs-based, gender-responsive, comprehensive in coverage of economic and non-economic L&D, and driven by inputs from those experiencing L&D themselves.
• The NCQG must allocate a portion of the finance in advancing climate change education. Education is the foundation on which to build the road to climate resilience and low- emissions sustainable development, a vital component of adaptation that strengthens multiple facets of climate action, especially long-term competencies, continuity within the climate sphere, and intergenerational justice.
• A fund under the NCQG must be allotted to support the implementation of the Glasgow Work Programme, which was adopted at COP26 to enhance the implementation of Action for Climate Empowerment (ACE), as defined under Article 6 of the UNFCCC. The decision-making process in determining this “ACE Fund” must include youth representation and be largely driven by the inputs of this sector.
• The NCQG must increase every five years and embedded with monitoring, review, transparency, and accountability mechanisms. Updating the NCQG post-2025 should be based on the findings of the latest Global Stocktake (GST) through an evidence-based, comprehensive, regular, and inclusive review process. This must result in higher ambition and corresponding pledges for the next collective goal to be set, aligned with the principle of increasing ambition as stipulated within the Paris Agreement. Spaces and mechanisms must be placed such that the inputs of non-state actors, especially civil society groups and the most vulnerable communities and sectors, are meaningfully integrated into the process.
• Standardized terminologies, methodologies, formats, and communications of NCQG-related pledges by developed countries and other funding stakeholders must also be established to obtain as accurate of an assessment of the progress being made as possible, and avoid double- counting that dilutes the intended impact of such financing and collective pursuit of addressing the climate crisis, especially for developing countries.

2. NATIONAL MEDICAL COMMISSION (NMC)

TAG: PRELIMS PERSPECTIVE

THE CONTEXT: While first year MBBS classes are likely to begin on August 1 of each year, the National Medical Commission (NMC) has also brought in changes in the undergraduate medical curriculum with the latest overhaul bringing in time limit on completing the MBBS course (by 9 years), fixed number of attempts to clear failed papers, compulsory attendance for both theory and practical papers and a family outreach programme.

EXPLANATION:

• Additionally, some subjects, including biochemistry and microbiology, have seen a reduction in the number of papers that need to be taken by the students.
• Reacting to the changes, senior doctors expressed fear that medical education is growing in its dependency on coaching institutes while medical students feel the changes are welcome.
• Meanwhile, as per the latest format, the four-and-half-year MBBS course will be divided into three phases with first and second phases of 12 months each, and phase three will be of 30 months — part I of 12 months and part II of 18 months.
• Each academic year will have at least 39 teaching weeks with a minimum of eight hours of study on each day and a total of 15 hours per week clinical posting is necessary from second year onwards. A minimum of 75% attendance in theory and 80% in practical or clinical is must for eligibility to appear for the examinations in that subject.
• Students failing in university examinations at the end of each professional year will appear in supplementary exams. As per the guidelines, supplementary exam results will be processed within three to six weeks from the date of declaration of the results of the main examination for every professional year, so that the candidates who pass can join the main batch for progression. The council has also specified the time that can be taken for clearing supplementary papers at various stages.
• Also, the National Exit Test (NExT), a comprehensive computer-based examination, that will replace the corresponding existing examinations for medical graduates in India, is to be conducted in December-January in the subjects of General Medicine, General Surgery, Ophthalmology, Obstetrics and Gynaecology, among others. NExT is also set to replace the NEET-PG entrance exams in India after 2023.

National Medical Commission (NMC)

• The National Medical Commission (NMC) has been constituted by an act of Parliament known as National Medical Commission Act, 2019.
• The Board of Governors in supersession of Medical Council of India constituted under section 3A of the Indian Medical Council Act, 1956 stands dissolved thereafter.
• While the MCI members were elected from within the medical community, the members of the NMCwere to be appointed by the government. NMC was thus prone to politicization of its very governing structure. It also summarily eroded the medical fraternity’s privilege of self-regulation.
• The Aim of the National Medical Commission are to (i) improve access to quality and affordable medical education, (ii) ensure availability of adequate and high quality medical professionals in all parts of the country; (iii) promote equitable and universal healthcare that encourages community health perspective and makes services of medical professionals accessible to all the citizens; (iv) encourages medical professionals to adopt latest medical research in their work and to contribute to research; (v) objectively assess medical institutions  periodically in a transparent manner; (vi) maintain a medical register for India; (vi) enforce high ethical standards in all aspects of medical services; (vii) have an effective grievance redressal mechanism.

3. INSOLVENCY RESOLUTION PROCESS

TAG: GS 3: ECONOMY

THE CONTEXT: The low-cost airline Go First (originally GoAir) filed for the initiation of insolvency proceedings recently. The company had been struggling with engine troubles for some time, which had led to the grounding of a large number of its aircraft. The percentage of grounded aircraft had risen from 7% of Go First’s fleet in December 2019 to 50% in December 2022. As a consequence, the market share of the airline crashed from 11% in November 2019 to 6.9% in March 2023. This significantly affected its cash flows, weakening its ability to meet its obligations.

EXPLANATION:

• A revival plan is reportedly in the works. But airfares are as of now through the roof, and the IBC process has been slower and less productive than expected. The longer this process is delayed, the more will be the value lost, and the more difficult it will be to restart operations.
• It is a struggling company’s financial creditors (banks) and operational creditors (who supply goods and services) who typically initiate proceedings under The Insolvency and Bankruptcy Code (IBC), 2016 for non-payment of their dues. In Go First’s case, however, it was the company that filed for the initiation of these proceedings. The airline had not defaulted on its loan repayments to banks, but had reportedly defaulted on obligations to its operational creditors.

 What is the Insolvency and Bankruptcy Code?

• In 2016, the government put in place a framework to deal with the problem of bad loans in the country’s banking system. The IBC provides a framework for a time-bound resolution process.
• Broadly, if a company is unable to service its obligations (payments that are due to its financial and operational creditors), one of two processes could follow: (i) the company’s liabilities are restructured, and it gets a chance to continue its operations, perhaps under new owners; (ii) its assets are liquidated, and the money is recovered.
• Before the IBC, there were other regulatory frameworks to deal with bad loans. But it usually took very long for the process to conclude. As per the World Bank’s Ease of Doing Business report, it would take 4.3 years on average to resolve insolvency cases before the IBC was enacted.
• The IBC put strict timelines in place. Initially, the process was to be completed within 270 days, failing which the company would be pushed into liquidation; the deadline was subsequently extended to 330 days. The time-bound nature of the process under IBC was appealing, because delays in resolution lead to further destruction in the value of the firm.

So did the introduction of the IBC help creditors?

• The IBC attempted to reshape the credit culture in the country by titling the balance in favour of creditors. The threat of losing their company under this framework, as soon the proceedings are initiated, the existing promoters/ management lose control over the firm works as a powerful deterrent for errant promoters and puts pressure on them to honour their obligations.
• This framework has also given a negotiating tool to operational creditors, who are typically small firms, to negotiate the payment of their dues by larger firms. Data from the Insolvency and Bankruptcy Board of India show that of all the cases admitted under IBC, proceedings in almost half have been initiated by operational creditors, signalling how widely this is being used by these firms.

4. SUMMER SOLSTICE

TAG: GS 1: GEOGRAPHY

THE CONTEXT: The longest day of the year, for anyone living north of the Equator, is June 21. The day is referred to as the summer solstice, and it occurs when the sun is directly over the Tropic of Cancer, or more specifically right over 23.5 degrees north latitude.

EXPLANATION:

Why do we have the summer solstice?

• Since Earth rotates on its axis, the Northern Hemisphere gets more direct sunlight between March and September over the course of a day, which also means people living in the Northern Hemisphere experience summer during this time. The rest of the year, the Southern Hemisphere gets more sunlight.
• During the solstice, the Earth’s axis around which the planet spins, completing one turn each day is tilted in a way that the North Pole is tipped towards the Sun and the South Pole is away from it.
• Typically, this imaginary axis passes right through the middle of the Earth from top to bottom and is always tilted at 23.5 degrees with respect to the Sun. Therefore, the solstice, as NASA puts it, is that instant in time when the North Pole points more directly toward the Sun than at any other time during the year. Solstice means “sun stands still” in Latin.
• While the solstice occurs at the same time across the world, different countries experience it at different times according to their time zones.

What happens during the solstice?

• This day sees the Earth receiving a greater amount of energy from the Sun.
• The maximum amount of sunlight received by the Northern Hemisphere during this time is usually on June 20, 21 or 22. In contrast, the Southern Hemisphere receives most sunlight on December 21, 22 or 23 when the northern hemisphere has its longest nights or the winter solstice.
• The amount of light received by a specific area in the Northern Hemisphere during the summer solstice depends on the latitudinal location of the place. The further north one moves from the equator, the more light one receives during the summer solstice. At the Arctic Circle, the sun does not set during the solstice.
• Summer solstice, however, does not necessarily mean the earliest sunrise or latest sunset. That depends on the latitudinal location of the country.

5. TITAN, THE MISSING TITANIC TOURIST SUBMERSIBLE

TAG: PRELIMS PERSPECTIVE

THE CONTEXT: On June 18, a submersible named Titan went missing. On board the missing vehicle were one pilot and four crew members travelling to see the wreckage of RMS Titanic, which is nearly four thousand metres under water in the frigid North Atlantic ocean. One hour and forty-five minutes into the journey, contact with Titan was lost.

EXPLANATION:

• United States and Canadian authorities have been using airplanes and boats, and are leveraging sonar technology to locate the sub.
• Titan has 96 hours of life support for a crew of five. Authorities are working round the clock to re-establish contact with the undersea vehicle. One of the crew members is Stockton Rush, CEO of OceanGate Inc., the company that runs these tours to the sunken ship.

What is the Titan submersible?

• Titan is a submersible, or an underwater vehicle. It is operated by the privately owned U.S. company OceanGate that organises underwater expeditions for both research and tourism.
• The company claims that Titan, which it said was built with “off-the-shelf” components, is lighter and more cost-efficient than other deep diving submersibles. The 6.7-metre-long manned submersible is intended for site survey and inspection, research and data collection, film and media production, and deep sea testing of hardware and software.
• The company said its expeditions were meant to document the Titanic and its rate of decay on the ocean floor, and that all expeditions were in line with National Oceanic and Atmospheric Administration (NOAA) Guidelines for Research Exploration and Salvage of RMS Titanic, as well as the UNESCO guidelines for the preservation of underwater world heritage sites.

What do these guidelines say?

• The UNESCO guidelines stress on the long-term preservation of “underwater cultural heritage” and the need to protect the surrounding waters as well by ensuring “responsible non-intrusive access.”
• The NOAA guidelines are similar and insist that recovered material and artefacts must be managed as per professional standards. In other words, taking souvenirs from the wreckage site is strongly discouraged.

What is the difference between a submarine and a submersible?

• While the two categories can overlap, a submarine refers to an underwater vehicle that is largely independent and has power reserves to help it depart from a port or come back to the port after an expedition.
• Meanwhile, a submersible is generally smaller in size and has less power, so it needs to work with a ship in order to be launched and recovered.

How was the submersible operated?

• Titan is made of carbon fibre and titanium, and weighs 10,432 kilograms, according to OceanGate’s website. It is capable of going 4,000 metres undersea, and moves as fast as three knots per hour (5.56 kph). Based on images from the company website, there is space for the five crew members to sit on the floor, though not stand.
• A small porthole window is at one end, but below 1,000 metres no sunlight reaches the ocean so the submersible would have to rely on its own lighting. The submersible is dependent on external crew members, as it is bolted from the outside. Titan also has an integrated launch and recovery platform
• The sub’s interior was filmed when it was on land. In a 2022 video interview with BBC, OceanGate CEO Stockton Rush said that Titan had only one button inside and that the submersible was run with a “Sony PlayStation-style controller” made by Logitech. The company has explained that “off-the-shelf” technology helped make it easier to replace parts.
• While it may sound strange that a submersible on such a high-risk expedition was operated with a gaming-style controller, the fact is that such devices are also used by some drone operators, navy personnel, and robot operators. Game controllers are cheap, easy to buy in bulk, designed to be intuitive, and respond quickly to the users’ hand movements.
• Before the expedition, OceanGate also said in a tweet that it was relying on satellite-based internet from the Elon Musk-founded company SpaceX’s Starlink for communication from the middle of the ocean, throughout the Titanic expedition.

1. ST. PETERSBURG INTERNATIONAL ECONOMIC FORUM (SPIEF)

TAG: GS 2: INTERNATIONAL RELATIONS

THE CONTEXT: At the 26th edition of the St. Petersburg International Economic Forum (SPIEF), held recently in Russia’s second-largest city and former imperial capital, the Kremlin made its message clear to the entire world: the economy is holding up despite unprecedented Western sanctions.

EXPLANATION:

• The SPIEF used to be called “Russian Davos” as it was probably the only such elite gathering of global business community leaders in this part of the world.
• At ‘Russian Davos’, Russian President praises ‘economic resilience’, seeks alternative partnerships.
• As the war in Ukraine drags on, taking a heavy toll on both sides of the frontline, Russia, faced with the biggest standoff with the West in its modern history, keeps looking for alternative economic and geopolitical partnerships to navigate the “challenging times”.
• This year’s “wartime” SPIEF turned out less international and lavish than its past editions, for obvious reasons, even though organisers claimed the participation of over 17,000 people from 130 countries, including high-ranking officials from the UAE, Algeria, Armenia, Cuba and delegations from China, India and Brazil.
• According to people close to the organisers, international media outlets were given “special attention” even as recently as last year, when the SPIEF was conducted for the first time since Russia invaded Ukraine, but the decision to not allow them to cover the event was taken for the first time in the forum’s history.
• Despite all odds the Russian economy contracted 2.1% in 2022, which was way less than the 7-10% decline projected by the Ministry of Economic Development and the Bank of Russia, and is forecast to grow by 0.8-1.2% this year.
• The resilience of the Russian economy and the ways to mitigate external factors such as disruption in logistics and exclusion from the global financial system remained the key topics of discussion at the forum, with policymakers and businesses engaged in sometimes heated debates of the ways to go forward.

Alternative routes

• Payments and logistics indeed remain the key obstacles for Russia’s trade with what it sees as friendly countries, many of which are located outside already developed land and maritime routes.
• Moscow is pushing the development of the Northern Sea route, which takes off at Russia’s Murmansk and leads to Shanghai, and the International North-South Transport Corridor (INSTC), a 7,200 km–long multimodal transport route connecting Russia’s north with Iran and India via the Caspian Sea.
• But developing new routes requires immense investments in the infrastructure, something that could be a problem given Russia’s resources are streamlined elsewhere and its ability to borrow money is very limited.
• For the Arctic route, for instance, Russia is planning to construct more than 50 icebreakers and ice-class vessels, ports and terminals, emergency and rescue centres, as well as building an orbital group of satellites. This would require a total investment of 2 trillion roubles ($24 billion) over the next 13 years.

SPIEF

• It is one of the biggest and most important business events in the world.
• Over the past 25 years, the Forum has cemented its status as a leading international event focusing on key issues on the global economic agenda.
• It provides a platform for participants to exchange best practices and expertise in the interests of sustainable development.
• SPIEF has been held annually since 1997. Since 2005, it has been held under the auspices of the President of the Russian Federation, who has also attended each event.
• In 2021, SPIEF was the first business event of such magnitude to be held offline since the unavoidable break caused by the COVID-19 pandemic. The Forum was also notable for its use of cutting-edge digital technology.
• SPIEF 2022 welcomed 14 thousand people from 130 countries. Among them were heads of state and government, senior executives of major corporations, and world-renowned experts in the fields of science and civil society. 81 countries were represented by their official delegations
• The St. Petersburg International Economic Forum (SPIEF) is a unique event in the world of business and economics. SPIEF has been held since 1997, and since 2006, it has been held under the auspices of the President of the Russian Federation, who has also attended each event.
• Over the last 24 years, the Forum has become a leading global platform for members of the business community to meet and discuss the key economic issues facing Russia, emerging markets, and the world as a whole.
• The business programme focus on the global and Russian economies, social issues, and technological development.

2. GLOBAL GENDER INDEX

TAG: PRELIMS PERSPECTIVE

THE CONTEXT: According to recently released global gender index, The country had improved by 1.4 percentage points from 2022 figures, marking a partial recovery towards its 2020 parity level; it had closed 64.3% of the overall gender gap but had reached only 36.7% parity in economic participation.

EXPLANATION:

• India was ranked at 127 out of 146 countries in terms of gender parity an improvement of eight places from last year, according to the annual Gender Gap Report, 2023 of the World Economic Forum (WEF).India was ranked 135 in the report’s 2022 edition.
• The country had attained parity in enrolment across all levels of education.
• India had closed 64.3% of the overall gender gap, the report said. However, it underlined that India had reached only 36.7 % parity on economic participation and opportunity.
• The index ranked India’s neighbours Pakistan at 142, Bangladesh at 59, China at 107, Nepal at 116, Sri Lanka at 115 and Bhutan at 103.
• Iceland is the most gender-equal country in the world for the 14th consecutive year and the only one to have closed more than 90% of its gender gap, according to the report.

Global Gender Gap Index Rankings

• Chart shows how rankings have changed for top 15 most populous countries between 2022 and 2023.

Wages and income

• In India, while there had been uptick in parity in wages and income, the share of women in senior positions and technical roles had dropped slightly since the last edition.
• On political empowerment, India has registered 25.3% parity, with women representing 15.1% of parliamentarians the highest for the country since the inaugural report in 2006.
• Out of the 117 countries with available data since 2017, 18 countries including Bolivia (50.4%), India (44.4%) and France (42.3 %) have achieved women’s representation of over 40% in local governance.
• For India, the 1.9 percentage point improvement in sex ratio at birth had driven up parity after more than a decade of slow progress, the report said.

Skewed sex ratios

• However, it also said that for Vietnam, Azerbaijan, India and China, the relatively low overall rankings on the Health and Survival sub-index is explained by skewed sex ratios at birth.
• Compared with top scoring countries that register a 94.4% gender parity at birth, the indicator stands at 92.7% for India (albeit an improvement over the last edition) and below 90% for Vietnam, China and Azerbaijan,” it said.
• Overall, the Southern Asian region has achieved 63.4% gender parity, the second-lowest of the eight regions.
• The score in South Asia has risen by 1.1 percentage points since the last edition on the basis of the constant sample of countries covered since 2006. The improvement is partially attributable to the rise in scores of populous countries such as India, Pakistan and Bangladesh.

Global Gender Gap Index

• Global Gender Gap Index creates an urgent case for renewed and concerted action. Accelerating progress towards gender parity will not only improve outcomes for women and girls but benefit economies and societies more widely, reviving growth, boosting innovation and increasing resilience.
• The index provides a tool for consistent tracking of gender gaps across the economic,political, health and education spheres, and is designed for leaders to identify areas for individual and collective action.
• The Global Gender Gap Index annually benchmarks the current state and evolution of gender parity across four key dimensions (Economic Participation and Opportunity, Educational Attainment, Health and Survival, and Political Empowerment).
• It is the longest-standing index tracking the progress of numerous countries’ efforts towards closing these gaps over time since its inception in 2006.
• The Global Gender Gap Index measures scores on a 0 to 100 scale and scores can be interpreted as the distance covered towards parity (i.e. the percentage of the gender gap that has been closed). Cross-country comparisons support the identification of the most effective policies to close gender gaps

3. INDIA’S JET ENGINE DEAL WITH THE U.S.

TAG: GS 2: INTERNATIONAL RELATIONS

THE CONTEXT: A landmark agreement to facilitate the transfer of at least 11 critical jet engine technologies is likely to be announced during Prime Minister ongoing official State Visit to the United States.

EXPLANATION:

• A mega defence deal for the manufacture of fighter jet engines in India is expected to dominate the agenda of Prime Minister first state visit to the United States recently.
• According to sources, India and the U.S. have “almost” finalised details and the White House is set to sign off on the deal that will allow American manufacturing company General Electric (GE) Aerospace to share critical technology with Hindustan Aeronautics Limited (HAL) for the joint production of GE-F414 jet engines that will power indigenous Light Combat Aircraft (LCA) Tejas Mk-II.
• The proposed agreement has evoked considerable interest in India and beyond, with experts terming it a significant step for bilateral defence and high-tech cooperation amid China’s growing influence and global technological dominance.

Tracing India’s quest for indigenous aero-engines

• India’s pursuit of self-reliance and technological transformation in the defence sector stems from the necessity to deal with the dual threat along its borders and maintain strategic autonomy in the emerging world order.
• Over the years, India has seen substantial accomplishments in various helicopter, missile and space programmes. India has also designed and built a fighter jet but hasn’t achieved much success in producing engines to power these aircraft.
• The quest began in the 1960s with the country’s first indigenous fighter, HF-24 Marut. The aircraft was envisioned as a supersonic jet, but failed to achieve its potential for want of a suitable engine and was eventually phased out.
• A few decades later, India sanctioned the Kaveri programme to develop an indigenous military gas turbine engine for the ambitious LCA project.
• With Kaveri still a work in progress, India shortlisted American GE-F404 engines for LCA Tejas Mark-1 as an interim measure. In 2010, the Aeronautical Development Agency (ADA) selected the more powerful variant, F414 engines, to power Tejas Mark-2. . In a media release, the company stated that it would supply an initial batch of the selected variant and the rest will be manufactured in India under a transfer of technology (ToT) arrangement.
• As a sign of deepening ties and with an eye on China, the U.S. recognised India as a “major defence partner” in 2016, which paved the way for sharing of critical military equipment and technology. It sought to put India on par with NATO-member countries.

What are the features of the F414 engine?

• India has shortlisted the F414-INS6 model for LCA Mk-II for the IAF, and the export market in the future. An advanced and more efficient version of the F404 engines conceived in the early ‘90s, F414 engines currently power the LCA Tejas.
• At the time the deal was struck, in 2010, the aerospace giant said that the Indian variant will include a fully digital electronic system to control different aspects of the engine, known as the Full Authority Digital Engine Control (FADEC), along with added single-engine safety features customised to meet the country’s defence requirements.

The engine’s main specifications are: 

1. An afterburner turbofan 154-inch long engine in the 22,000-pound (98 kilonewtons) thrust class — 35% more thrust than the F404 engines. The afterburner tech increases the thrust of a jet engine for short periods to improve an aircraft’s take-off, climb, and combat performance.
2. A thrust-to-weight ratio of 9:1, which is an indicator of aircraft propulsion. The higher an aircraft’s thrust-to-weight ratio, the higher its acceleration, excess thrust, and rate of climb.
3. Has low maintenance costs and boasts of unrestricted engine performance on demand with more than five million engine flight hours.
4. Is more reliable and has greater engine durability with a reduced life-cycle cost. The engine is designed to maximise time on wings, which is a measure of the operational reliability of an engine.

The F414 engines power several advanced, next-generation combat aircraft around the globe. Currently, these engines are operational in Boeing’s F-18 Super Hornet twin-jet fighters and Saab’s JAS 39-Gripen (Next Generation) single-engine combat aircraft and are being integrated into aircraft being built in South Korea. As per estimates, GE has produced F414 engines for F-18 Super Hornets at $3.71 million

How crucial is the deal for India?

• India will become the fifth country in the world to produce jet engines once the deal is sealed, joining the U.S., Russia, France and the U.K.
• Besides boosting its military capabilities and growing defence manufacturing at a time when the world is reeling due to the impact of the Russia-Ukraine conflict, the agreement will help replace the fleet of ageing Russian fighters.
• The jet engine deal will take India’s capability in the aircraft industry to a new level, and I think from a U.S. perspective, it will mean jobs. The deal also sends a message to the Chinese that the relationship between India and the U.S. is not just a surface relationship and is getting deeper.
• Addressing India’s dependence on Russian imports, the report added, “Expanding the type and sophistication of the arms the U.S. is willing to sell to India may elevate the U.S. as an alternative to India’s traditional dependence on Russian hardware, particularly amid rising concerns about Russia’s strategic embrace of China, and growing questions about the quality, reliability, and capacity of a Russian defence industrial base increasingly strained by the Ukraine conflict.”

4. PM GATI SHAKTI SCHEME

TAG: PRELIMS PERSPECTIVE

THE CONTEXT: CII moots that government could share information from portal after blocking out ‘sensitive’ data to facilitate greater private capital investments in infrastructure projects. Industry eyes access to Gati Shakti portal to boost capex in connectivity, allied sectors.

EXPLANATION:

• Industry is hopeful that the government may soon agree to open up access to the PM Gati Shakti portal developed for planning multi-modal infrastructure projects, thus helping facilitate greater private capital investments especially in connectivity projects that are seen as critical to sustain the economy’s momentum.
• Unveiled in October 2021, the PM Gati Shakti digital platform brings together 16 ministries, including Railways and Roadways, so as to spur an integrated and coordinated approach to planning and implementing infrastructure connectivity projects across the country.
• So far, access to portal’s data, which include detailed maps with existing economic and social infrastructure as well as upcoming projects, is restricted to Central and State government agencies and departments.

Pradhan Mantri Gati Shakti Scheme:

• The Pradhan Mantri Gati Shakti National Master Plan is a central government project, aimed to revolutionise infrastructure in India.
• On October 13, 2021, PM Modi launched the Pradhan Mantri Gati Shakti (PMGS) scheme, aimed at breaking inter-ministerial silos and to integrate the planning of infrastructure projects.
• Gati Shakti is one of the four big priorities for the government. “The touchstone of the Gati Shakti master plan will be world-class, modern infrastructure and logistics synergy among different modes of movement of both, people and goods, and location of projects.
• The Gati Shakti national master plan, spruced by seven engines of infrastructure, will go a long way in developing multi-modal network to create world-class infrastructure with full support on planning, financing, innovation and technology.

 How does it work?

• To get the mission going, a centralised portal will be set up to unite the infrastructural initiatives planned and initiated by 16 central ministries and departments, including railways, roads and highways, petroleum and gas, power, telecom, shipping and aviation, etc.
• By putting in place better coordination among these ministries, the Gati Shakti portal, which also aims at a centralised transportation and logistics grid, will enable smoother information flow and expedite project clearance process.
• Large-scale infrastructure projects that will now implimented according to the prescriptions laid in the Gati Shakti master plan include flagship projects like Bharatmala, Sagarmala, UDAAN, expansion of railway network, inland waterways and Bharat Net.
• Also expected to result in employment generations for millions, the Gati Shakti masterplan will work to meet the three basic targets— seamless multimodal connectivity to facilitate easy movement of goods and people; improved prioritisation, optimal usage of resources, timely creation of capacities; and resolution of issues such as disjointed planning, standardisation and clearances.

Gati Shakti mission: Key objective

• With the broad objective of making products manufactured in the country more competitive by cutting down the logistics costs and improving supply chains, the Pradhan Mantri Gati Shakti scheme will help India attract investment from all over the world for improving the infrastructure of the country.
• It begs mention here that logistics and supply chain costs account for around 12% of the gross domestic product (GDP) in India at present.  This is much higher when compared to the global average of 8%.
• Factors that lead to this higher expense are excessive dependence on transportation by road, and under-utilisation of waterways, air and rail networks. Overall, these factors hike rates of Indian produces when compared to other countries, making them less competitive globally.
• The Gati Shakti Plan consolidates infrastructure projects in specific corridors, and will help various ministries plan projects together without getting hampered by the specific/time-consuming approval processes,” Brickwork Ratings said in a note while statting that the pan will be game-changer in the space of infrastructure development.

PM Gati Sghakti plan goals

Mentioned below are the various targets that will be achieved under the Gati Shakti scheme:

*Roadways capacity to be increased with the national highway network to touch the 2 lakh-km mark.

*Aviation will receive a massive boost, with around 200 new airports, heliports and water aerodromes envisioned in the plan.

*Capacity of railways transport cargo to be increased to around 1,600 tonne by FY25

*Ease in the electricity access with the transmission network to be increased to 454,200 circuit km

*Renewable capacity to be increased to 225 GW by FY25.

*Also around 17,000 kms of gas pipelines will be completed in the same year.

*4G connectivity for the villages by FY22

*20 new mega food parks

*11 industrial corridors and two new defence corridors in Tamil Nadu and Uttar Pradesh

*202 fishing clusters/harbours/landing centres

5. U.S. FEDERAL RESERVE RATE HIKE CYCLE

TAG: GS 3: ECONOMY

THE CONTEXT: The U.S. Federal Reserve (Fed) recently paused its rate hike cycle by deciding to hold interest rates after ten rate hikes since March 2022. The central bank kept its target for the benchmark federal funds rate between 5% and 5.25% until its next policy meeting. Many analysts, however, expect the Federal Reserve to resume its rate hikes and some even expect the federal funds rate to hit 6% soon.

EXPLANATION:

What does a pause in rate hikes mean?

• Central banks around the world try to steer their economies primarily by targeting interest rates at which lending/borrowing happens in the short-term credit markets.
• For instance, if a central bank wants to lower short-term interest rates, it can enter the market where banks borrow funds for their short-term needs with fresh funds, bid up the price of these loans and thus lower interest rates.
• The fresh money injected into the banking system, in turn, would tend to percolate into the economy and cause prices to rise in the wider economy.
• A central bank can thus use monetary policy to influence prices in the wider economy. And keeping inflation within a certain target range is a major goal of central banks.
• Another policy goal that central banks try to meet along with the inflation target is to keep the economy operating at its full capacity wherein all resources are fully employed. Many economists believe that there is a trade-off between inflation and unemployment. According to this framework, if inflation falls too low, this can cause a rise in unemployment and hence unused capacity.
• So, the agenda of most central banks is to keep inflation up at a certain level at which the economy functions at full capacity. Inflation above a certain level, however, is seen as having no positive effect on economic activity.

Why did the Fed decide to hold rates steady?

• It should be noted that the Fed began raising interest rates after inflation hit multi-decade highs as the U.S. economy slowed down due to the Covid-19 lockdowns and the U.S. central bank responded by flooding the economy with massive amounts of dollars.
• A rapid withdrawal of monetary support can cause prices to undershoot the Fed’s inflation target, something the U.S. central bank may not want.

What lies ahead?

• The Fed’s rate hike pause is no guarantee that there won’t be any future rate hikes in the short term. Other western central banks have continued to raise rates after a pause, and major central banks such as the European Central Bank and the Bank of England continue to raise interest rates as inflation continues to be a challenge in their economies.
• Many economists over the last year or so have been trying to predict a recession in the U.S. without much success. It can only be said that the U.S. Federal Reserve’s actions are likely to be influenced by several factors including inflation, economic growth and political compulsions ahead of the U.S. Presidential elections next year.
• The Fed’s rate hike pause is no guarantee that there won’t be any future rate hikes in the short term. Other western central banks have continued to raise rates after a pause, and major central banks such as the European Central Bank and the Bank of England continue to raise interest rates as inflation continues to be a challenge in their economies.

1. UNIFORM CIVIL CODE

TAG: GS 2: POLITY

THE CONTEXT: 22nd Law Commission of India sought the views of religious organisations and the public on the issue of a Uniform Civil Code (UCC).

EXPLANATION:

• A notice issued by the Commission said those interested and willing may present their views within 30 days.
• This comes eight months after the Centre told the Supreme Court that the Constitution obligated the State to have a UCC for its citizens, saying that people of different religions and denominations following different property and matrimonial laws was an “affront to the nation’s unity”.
• Responding to petitions before the Supreme Court for uniformity in laws governing matters of divorce, succession, inheritance, adoption and guardianship, the Centre, in October 2022, had told the apex court that the Constitution obligated the State to have a UCC for its citizens. It had also submitted that the matter would be placed before the 22nd Law Commission.

What did the 21st Law Commission say on the matter?

• Underlining that the Uniform Civil Code is “neither necessary nor desirable at this stage”, the 21st Law Commission of India, in 2018, argued for reform of family laws of every religion through amendments and codification of certain aspects so as to make them gender-just
• In its ‘Consultation Paper on Family Law Reforms’, the Law Commission took a stand in favour of “equality ‘within communities’ between men and women” (personal law reform), “rather than ‘equality between’ communities” (UCC).
• It further noted that “women must be guaranteed their freedom of faith without any compromise on their right to equality” as it would be unfair to make women choose between one or the other.

What is Uniform Civil Code?

• A UCC would provide for one law for the entire country, applicable to all religious communities, in their personal matters such as marriage, divorce, inheritance, adoption etc.
• Currently, Indian personal law is fairly complex, with each religion adhering to its own specific laws. Separate laws govern Hindus including Sikhs, Jains and Buddhist, Muslims, Christians, and followers of other religions.
• The exception to this rule is the state of Goa, where all religions have a common law regarding marriages, divorces, and adoption.

What does the Constitution say about a UCC?

• Article 44 of the Constitution lays down that the state shall endeavour to secure a UCC for citizens throughout the territory of India.
• Article 44 is among the Directive Principles of State Policy. Directive Principles are not enforceable by court, but are supposed to inform and guide governance.
• While Article 44 uses the words “state shall endeavour”, other Articles in the ‘Directive Principles’ chapter use words such as “in particular strive”; “shall in particular direct its policy”; “shall be obligation of the state” etc.
• Furthermore, the phrase “by suitable legislation” is absent in Article 44. All this implies that the duty of the state is greater in other directive principles than in Article 44.

Why is there no uniform code for personal law?

• Article 25 lays down an individual’s fundamental right to religion.
• Article 26(b) upholds the right of each religious denomination or any section thereof to “manage its own affairs in matters of religion”.
• Article 29 defines the right to conserve distinctive culture.
• An individual’s freedom of religion under Article 25 is subject to “public order, health, morality” and other provisions relating to fundamental rights, but a group’s freedom under Article 26 has not been subjected to other fundamental rights.

2. HAWKISH PAUSE

TAG: GS 3: ECONOMY

THE CONTEXT: The Federal Reserve of the United States, the world’s most influential central bank, decided to pause raising interest rates. While it is a pause, many are calling it a hawkish one a characterisation used for India’s RBI as well.

EXPLANATION:

• Over the past two reviews (in April and June) of monetary policy which essentially involves the RBI’s Monetary Policy Committee (MPC) tweaking interest rates in such a manner as to contain inflation while promoting growth and employment  the RBI has decided to “pause” raising interest rates.

• In any policy review, a central bank either raises interest rates or cuts them or decides to maintain the status quo.

What is a “hawkish pause”?

• Those central banks (or bankers) who have a very low threshold for tolerating variation from the targeted inflation level (or a range), and who keep their eyes peeled for such divergence and immediately swoop in to raise interest rates, are called “Hawks”.
• “Doves”, on the other hand, favour boosting growth (by keeping the interest rates low) and are far more willing to risk having higher inflation.
• A hawkish pause then implies that while the central bank has decided to pause raising interest rates, ending a streak of repeated interest rate .
• Low interest rates, for instance, imply that stock markets will move higher because fresh credit is cheaper than previously imagined.
• These are the things that make a pause “hawkish”. Essentially, no one should take it for granted that the Fed (or the RBI) have stopped taking the threat of inflation lightly.

3. MIYAWAKI TECHNIQUE

TAG: PRELIMS PERSPECTIVE

THE CONTEXT: Prime Minister during his latest ‘Mann ki baat’ episode spoke about Miyawaki plantation, the Japanese method of creating dense urban forests in a small area. The PM also cited the example of a Kerala-based teacher, Raafi Ramnath, who used the Miyawaki technique to transform a barren land into a mini forest called Vidyavanam by planting 115 varieties of trees.

EXPLANATION:

• Meanwhile, to fight climate change, curb pollution levels, and increase the green cover of the financial capital, the Brihanmumbai Municipal Corporation (BMC) has been creating Miyawaki forests in several open land parcels of Mumbai.

What is the Miyawaki plantation method?

• Named after Japanese botanist Akira Miyawaki, this method involves planting two to four different types of indigenous trees within every square metre. In this method, the trees become self-sustaining and they grow to their full length within three years.
• The methodology was developed in the 1970s, with the basic objective to densify green cover within a small parcel of land.
• The plants used in the Miyawaki method are mostly self-sustaining and don’t require regular maintenance like manuring and watering.

• Over the years, this cost effective method has become the go-to solution for the civic body to restore the green cover in a space-starved city like Mumbai.

How is Miyawaki useful?

• The dense green cover of indigenous trees plays a key role in absorbing the dust particles of the area where the garden has been set up. The plants also help in regulating surface temperature. Some of the common indigenous plants that are used for these forests include Anjan, Amala, Bel, Arjun and Gunj.

• With several infrastructure projects like real estate metro rail construction in progress in Mumbai over the past few years, it was recorded that the surface temperature in certain pockets of Mumbai has increased. Therefore, to fight this challenge, such forests are being created.
• These green patches play a major role in regulating the carbon levels of a given area, which may in return help in maintaining a clean year. Also, these forests encourage new biodiversity and an ecosystem is developed around it, which in turn increases the fertility of the soil and regulates surface temperature.

4. KAMALA SOHONIE

TAG: GS 1: HISTORY

THE CONTEXT: On June 18, Google Doodle honours scientist Kamala Sohonie on her 112th birth Anniversary and here is the brief account of how she made CV Raman change his stance on women in science institutions.

EXPLANATION:

• Kamala Sohonie was the first Indian woman to get a PhD degree in a scientific discipline and went on to win the Rashtrapati Award for her work on Neera, a palm extract that could fight malnutrition among children from tribal communities in India.

Early life of Kamala Sohonie:

• Kamala Sohonie (nee Bhagvat) was born on June 18, 1911 in Indore, in present-day Madhya Pradesh.
• Her father, Narayanarao Bhagvat, and his brother Madhavrao Bhagvat were both chemists who had studied at the Tata Institute of Sciences, now Bengaluru’s Indian Institute of Science (IISc).
• Following in their footsteps, Kamala graduated in 1933 with a BSc degree in Chemistry (principal) and Physics (subsidiary) from Bombay University, topping the merit list. She then applied for an MSc degree at the IISc, headed by CV Raman where she was rejected.
• Undeterred, the young Kamala went all the way to Bengaluru to confront Raman.
• In 1997, at an event to felicitate her at the Bhabha Atomic Research Centre (BARC), She challenged Raman that she would complete the course with distinction, and finally, he allowed her in, imposing several conditions.
• Sohonie completed her course with distinction and secured admission to Cambridge University, England, in 1936. “This incident forced Raman to change his opinion about women and from that year he admitted a few students every year.

Work at Cambridge and after

• At Cambridge, Sohonie finished her PhD in merely 14 months, and her thesis was just 40 pages. During her time there, she worked on potatoes and discovered the enzyme ‘Cytochrome C’, a type of protein in the mitochondria which plays an important role in cellular respiration.
• In 1939, she came back to India to serve her country.
• She served as head of the Department of Biochemistry at Lady Hardinge College, New Delhi.
• She then served as Assistant Director of the Nutrition Research Lab, Coonoor, before join the Royal Institute of Science in Mumbai. Here, she studied different food items to identify the nutrients present in them.

• According to an article on the website of the Indian Institutes of Science Education and Research (IISER), Kolkata, she worked on ‘neera’, a drink made from palm extract on the suggestion of the First Indian President of India, Dr. Rajendra Prasad. Her studies established that ‘neera’ was a good source of Vitamin C along with other vitamins, moreover there are sulfhydryl compounds in Neera that protect vitamins during storage. Realising that this would be a cheap and good supplement for poor tribals, she went to popularise this drink. The introduction of neera in the diet of tribal malnourished children and pregnant women improved their health significantly.
• She also worked with the administration of the Aarey Milk project to improve the quality of the milk produced.
• Apart from her academic work, Kamala Sohonie was among the founding members of consumer protection body Consumer Guidance Society.

5. SCIENTIFIC NAMES OF SPECIES

TAG: PRELIMS PERSPECTIVE

THE CONTEXT: In recent years, the field of taxonomy, the science of naming and classifying all living beings, has been witnessing a raging debate whether species with objectionable scientific names should be renamed.

EXPLANATION:

• In recent years, the field of taxonomy, the science of naming and classifying all living beings, has been witnessing a raging debate whether species with objectionable scientific names should be renamed.
• Rare insects, exotic flowers and deadly arachnids have been named in honour of people linked to racism and anti-Semitism. Racial slurs have figured in names of flora and fauna. Now, a debate about changing these names is brewing.
• Although such discussions have always existed, they became mainstream only recently, especially after the emergence of Black Lives Matter (2013-present) in the USA.

What are some of the species with problematic names?

• The best known example of such a living being is Anophthalmus hitleri. Named after the former German Führer, Adolf Hitler, this rare blind beetle, popularly known as the Hitler beetle, was discovered in 1933 by “Oscar Scheibel, a German amateur entomologist and ardent Hitler fan, and is found in only around 15 caves in central Slovenia. The popularity of the Hitler beetle touched such heights that it became nearly extinct.
• Another example is the common small-blotched lizard. With the scientific name Uta stansburiana, the reptile, in 1852, was named after Howard Stansbury, who led a famous expedition to study the flora and fauna in the USA’s Utah region and collected this lizard’s type specimens. He was a vocal supporter of and played a key role in a locally-infamous massacre of Timpanogos Native Americans in which more than 100 were killed.

• The flowering shrub Hibbertia scandens is one more case in point. The plant has the moniker after George Hibbert, an English amateur botanist, who was one of the leading members of the pro-slavery and anti-abolition lobby during the late 1700s.
• Among the species which have been named after derogatory terms is the Hottentotta tamulus scorpion “colonialists in the 17th century used “Hottentot” as a derogatory term for Indigenous Black people in Africa.
• One more example is Rauvolfia caffra, commonly known as the quinine tree, which gets its moniker from another offensive term regarded as hate speech against Black communities in South Africa.

How are species given their scientific names?

• Every species of animal or plant has two scientific names. The first name denotes the genus to which the species belongs. It is a generic name and is always capitalised. The second name identifies the species within the genus and is never capitalised. Both names are italicised.
• A genus may comprise several closely related species. Thus many large hawks are placed in the genus Buteo. Just as closely related species are placed in the same genus, closely related genera (the plural of “genus”) are grouped into a family. Jaguars, tigers, and house cats all belong to the family Felidae.
• These names are usually of Latin or Greek origin. Oftentimes, species are named based on their distinctive features.
• But other times, organisms are named after people who discover them. They are also sometimes named in honour of somebody. These practices, as mentioned before, have been quite controversial in recent times.

Who makes the rules regarding giving scientific names to organisms?

• Although anybody can propose a name for a type of organism they think hasn’t been formally identified by anyone else, there are certain rules, or nomenclature codes, that they have to follow.
• A new name is considered to be valid only when it is published in an “openly distributed publication, and it must be accompanied by a detailed description of the specimens the author claims are typical for the group.
• These nomenclature codes are governed by international bodies such as the International Commission of Zoological Nomenclature (ICZN) which governs the naming of animals, the International Code of Nomenclature for algae, fungi, and plants (ICNafp) that sees the naming of plants (including cyanobacteria), and the International Code of Nomenclature of Bacteria (ICNB) that governs the naming of bacteria (including Archaea) and the International Committee on Taxonomy of Viruses (ICTV) that governs virus names.

Can a species’ offensive scientific name be changed?

• The International Code of Botanical Nomenclature (ICBN) in its rulebook says, “The only proper reasons for changing a name are either a more profound knowledge of the facts resulting from adequate taxonomic study or the necessity of giving up a nomenclature that is contrary to the rules.”
• Similarly, as Financial Times reported last week, ICZN recently refused to change problematic names, saying its “commitment to a stable and universal nomenclature remains the priority”.

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.

1. EL NINO

TAG: GS 1: GEOGRAPHY

THE CONTEXT: NOAA flags dramatic warming in Pacific Ocean after 7 years. It is important to note that El Niño has no one-on-one links India’s summer monsoon. However, it is true that practically all drought years in India since Independence have witnessed El Niño events of varying intensity.

EXPLANATION:

• National Oceanic and Atmospheric Administration (NOAA) of the United States federal administration, announced El Niño is back in the Pacific Ocean after seven years.

What is El Niño?

• El Niño, which in Spanish means “little boy”, is a climate pattern that develops along the equatorial Pacific Ocean after intervals of a few years ranging between 2 and 7 years.
• Essentially, water on the surface of the ocean sees an unusual warming in a band straddling the equator in the central and east-central pacific broadly extending from the International Date line and 120°W longitude, i.e., off the Pacific coast of South America, west of the Galapagos islands.

How and why does El Niño happen?

• When the so-called El Niño Southern Oscillation (ENSO) is in its neutral phase, the trade winds blow west along the equator and take the warm water from South America towards Asia.
• However, during an event of El Niño, these trade winds weaken (or may even reverse) and instead of blowing from the east (South America) to the west (Indonesia), they could turn into westerlies.
• In this situation, as the winds blow from the west to east, they cause masses of warm water to move into the central and eastern equatorial Pacific Ocean, and reach the coast of western America.
• During such years, there prevails warmer-than-average sea surface temperatures along the equatorial Pacific Ocean.

And what is the impact of El Niño conditions?

• Globally, El Niño has been associated with severe heatwaves, floods, and droughts in the past.
• Depending on its strength, El Niño can cause a range of impacts such as increasing the risk of heavy rainfall and droughts in certain locations around the world.

How severe are this year’s El Niño conditions?

• The 2023 event is the fifth since 2000 — which means they develop every 4-5 years on average.
• Sea surface temperatures along the equatorial Pacific Ocean, especially along the various Niño regions, have been showing signs of much more rapid warming than had been predicted by the weather models.
• The Niño 3.4 index value the vital indicator confirming an event of El Niño jumped from minus 0.2 degrees Celsius to 0.8 degrees Celsius between March and June this year. Whereas, the threshold value of this index is 0.5 degrees Celsius.

How worried should India be about this development?

• In the Indian context, over the last hundred years, there have been 18 drought years.
• Of these, 13 years were associated with El Niño. Thus, there seems to be a correlation between an El Niño event and a year of poor rainfall in India.
• Also, between 1900 and 1950, there were 7 El Niño years but during the 1951-2021 period, there were 15 El Niño years ( 2015, 2009, 2004, 2002, 1997, 1991, 1987, 1982, 1972, 1969, 1965, 1963, 1957, 1953 and 1951). This suggests that the frequency of El Niño events has been increasing over time.
• Of the 15 El Niño years in the 1951-2021 period, nine summer monsoon seasons over the country recorded deficient rain by more than 90 per cent of the Long Period Average (LPA).
• Climate change can exacerbate or mitigate certain impacts related to El Niño.
• It could lead to new records for temperatures, particularly in areas that already experience above-average temperatures.

2. KAZIRANGA MAHOUTS CAUGHT FOR CONSUMING RARE TURTLES 

TAG: GS 3: ENVIRONMENT

THE CONTEXT: Three persons engaged as mahouts in the Kaziranga National Park and Tiger Reserve have been arrested for capturing and consuming a rare species of a freshwater turtle i.e spotted pond turtles inside the one-horned rhino habitat. Action against the trio was taken under relevant sections of the Wildlife (Protection) Act of 1972.

EXPLANATION:

Spotted pond turtles

• Spotted pond turtles are named for the yellow or white spots on their black heads, legs and tails. They have large heads and short snouts, and their webbed feet help them swim.
• The pond turtle’s carapace, or upper shell, is generally black with bright patterns that fade with age. Males have concave carapaces and larger, thicker tails than females.
• Pond turtles bask in the sun to regulate their body temperature.
• Spotted pond turtles are found in the northern region of the Indian subcontinent in the Indus and Ganges river drainages. Their range includes parts of Pakistan, northern India, Bangladesh, and Nepal.

• They are semi-aquatic and can typically be found in shallow, standing waters, such as oxbow lakes, ponds and marshes.
• They prefer water with thick vegetation that provides cover, as well as places to lie and bask.
• Communication : When they retreat into their shells, spotted pond turtles make a soft croak.
• Spotted pond turtles are primarily carnivorous and eat aquatic invertebrates. They use the bony surfaces of their strong jaws to crush the shells of snails, prawns, crabs and other crustaceans. They also eat mollusks, fish, amphibians and cereal grains, and will sometimes graze on grasses.
• Spotted pond turtles reach sexual maturity between 6 and 8 years old. Females dig a bowl-shaped nest for their eggs that is about 6-10 centimeters (2-4 inches) deep. The nest is dug into loamy soil (soil with sand, silt and clay) in a spot where it will be concealed by bushes and other vegetation.
• Spotted pond turtles are crepuscular, meaning they are most active at twilight (dusk and dawn).

Kaziranga national park

• Kaziranga National park’s 430 square kilometer area sprinkled with elephant-grass meadows, swampy lagoons, and dense forests is home to more than 2200 Indian one-horned rhinoceros, approximately 2/3rd of their total world population.
• The park is located in the edge of the Eastern Himalayan biodiversity hotspots Golaghat and Nagaon district.
• In the year 1985, the park was declared as a World Heritage Site by UNESCO. Along with the iconic Greater one-horned rhinoceros, the park is the breeding ground of elephants, wild water buffalo, and swamp deer.
• Over the time, the tiger population has also increased in Kaziranga, and that’s the reason why Kaziranga was declared as Tiger Reserve in 2006. Also, the park is recognized as an Important Bird Area by BirdLife International for the conservation of avifaunal species. Birds like lesser white-fronted goose, ferruginous duck, Baer’s pochard duck and lesser adjutant, greater adjutant, black-necked stork, and Asian Openbill stork specially migrate from the Central Asia during the winter season..
• There are mainly four types of vegetation’ like alluvial inundated grasslands, alluvial savanna woodlands, tropical moist mixed deciduous forests, and tropical semi-evergreen forests.

3. UNIFIED PAYMENTS INTERFACE (UPI)

TAG: GS 3: ECONOMY

THE CONTEXT: As transactions facilitated by the Unified Payments Interface (UPI) breach record highs, banks have opted for daily limits. These are over and above the already imposed ceilings mandated by the facilitator, the National Payments Corporation of India (NPCI), in 2021. The idea is to sustain the smoother functioning of the payments interface as it continues to acquire popularity in our daily lives.

EXPLANATION:

• At present, users can make up to 20 transactions or ₹1 lakh in a single day either all at once or through the day.
• For certain specific categories of transactions such as the capital markets, collections (such as bills, among others), insurance and forward inward remittances, the limit is ₹2 lakh.
• In December 2021, the limit for the UPI-based ASBA (Application Supported by Blocked Amount) IPO and retail direct schemes was increased to ₹5 lakh for each transaction.
• As the payments interface looks to expand its footprint (recall the boarding of non-resident accounts having international numbers into the ecosystem) and its growing utility in daily lives, limits would help maintain an essential security infrastructure and its seamless functioning.

Unified Payments Interface (UPI)

• Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.
• It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience. Each Bank provides its own UPI App for Android, Windows and iOS mobile platform(s).
• The Unified Payment Interface is a way to make payments that work in real-time.
• The Reserve Bank of India, the National Payments Corporation of India (NPCI), and the Indian Banks Association started UPI (IBA).

How the Unified Payments Interface (UPI) works?

• UPI uses technologies like the Immediate Payment Service (IMPS) and the Aadhaar-Enabled Payment System (AEPS) to ensure that payments between accounts go smoothly.
• It can handle push (pay) and pull (receive) transactions, over-the-counter or barcode payments and many recurring payments, like utility bills, school fees, and other subscriptions.
• Once a single identifier is set up, the method lets mobile payments be made without using credit or debit cards, online banking, or entering account information.
• This will make sensitive information safer, and people with bank accounts will be able to link their phones to their accounts to easily make transactions.

4. WHAT IS HAPPENING TO ARCTIC SEA ICE?

TAGS: GS 1: GEOGRAPHY

THE CONTEXT: A recent study in the Nature journal says that the loss of Arctic sea ice is inevitable in the decades ahead, even if the world somehow gets its act together and sharply reduces carbon emissions.

EXPLANATION:

Why is the Arctic sea ice important?

• The massive sheets of ice that pad the Arctic region play a major role in influencing global climate and the rise and fall in Arctic sea temperatures.
• During winter, the sea ice envelops most of the Arctic Ocean and in summer, a portion of it melts due to being exposed to longer periods of sunlight and elevated temperatures.
• Sea ice normally melts and is at its thinnest and most sparse in mid-September, when the area covered by ice is roughly half the size of the winter maximum.
• The United States’ Environment Protection Agency (EPA) explains the importance of sea ice thus: “Sea ice is light-coloured and therefore reflects more sunlight back to space than liquid water, thus playing a vital role in keeping polar regions cool and maintaining the earth’s energy balance. Sea ice also keeps the air cool by forming a barrier between the cold air above and the relatively warmer water below.
• As the amount of sea ice decreases, the Arctic region’s cooling effect is reduced, and this may initiate a ‘feedback loop’ whereby ocean warming caused by more absorption of solar energy leads to an even greater loss of sea ice and further warming.
• Changes in sea ice can affect biodiversity and impact mammals such as polar bears and walruses, which rely on the presence of sea ice for hunting, breeding, and migrating. The reduction in ice cover also affects the traditional subsistence hunting lifestyle of indigenous Arctic populations such as the Yup’ik, Iñupiat, and Inuit.
• On the other hand, reduced ice can present “commercial and economic opportunities” with the opening up of shipping lanes and increased access to natural resources in the Arctic region. This has already provoked global competition with several countries, including India, vying for greater influence in groups such as the Arctic Council that governs access to Arctic resources

What does the new study say?

• Arctic sea ice is decreasing is well-known and acknowledged in several reports of the Intergovernmental Panel on Climate Change (IPCC) and it is widely expected that the world will see its first ‘sea-ice free summer’ before 2050.
• This, however is under the assumption that global emissions will drive temperatures to beyond 4.5°C making the Arctic ice-free by 2081-2100.
• There was uncertainty on whether this sea-ice-free scenario applied to situations where carbon emissions were curbed enough to ensure that temperature-rise was restricted to say 1.5°C or 2°C, as envisaged in the Paris Agreement.
• The recent Nature study confirms that there is no scenario under which the Arctic sea ice can be saved in summer.
• Moreover, if drastic reductions in emissions aren’t undertaken, we could very well be seeing the first such summer in the 2030s. Satellites monitoring the Arctic have shown the rate of loss to be 13% every year.

Effects:

• The diminished sea ice while warming the Arctic also leads to a weakening of the polar jet streams, which are currents of air that form when warm and cold air meet.
• This weakening has been linked to rising temperatures and heatwaves in Europe as well as unseasonal showers in northwest India.
• While the ice-free summer may be inevitable, reducing carbon emissions might mean being better able to adapt to climate ‘tipping points.’

5. POWER TRADING AND CERC

TAG: PRELIMS PERSPECTIVE

THE CONTEXT: The power ministry has asked Central Electricity Regulatory Authority (CERC) to initiate the process of coupling multiple power exchanges, a mechanism which seeks to ensure uniformity in price discovery of energy at trading platforms.

EXPLANATION:

• At present India has three power exchanges — Indian Electricity Exchange (IEX), Power Exchange of India (PXIL) and Hindustan Power Exchange (HPX). The IEX has the largest market share of 88% in total power trade at multiple exchanges in India
• In the present scenario, buyers and sellers at each exchange do trading of electricity and discover spot price separately at these exchanges. After coupling of exchanges, the price discovery would be uniform.
• This will give a fillip to the service levels in the power market, and ensure better transparency and uniform prices discovery across exchanges.
• The move is also expected to bring down the power tariff in the country significantly.

Central Electricity Regulatory Authority

• CERC is a statutory body functioning under sec – 76 of the Electricity Act 2003 (CERC was initially constituted under the Electricity Regulatory Commissions Act, 1998 on 24th July, 1998).
• The Commission intends to promote competition, efficiency and economy in bulk power markets, improve the quality of supply, promote investments and advise government on the removal of institutional barriers to bridge the demand supply gap and thus foster the interests of consumers.

In pursuit of these objectives the Commission aims to –

• Improve the operations and management of the regional transmission systems through Indian Electricity Grid Code (IEGC), Availability Based Tariff (ABT), etc.
• Formulate an efficient tariff setting mechanism, which ensures speedy and time bound disposal of tariff petitions, promotes competition, economy and efficiency in the pricing of bulk power and transmission services and ensures least cost investments.
• Facilitate open access in inter-state transmission
• Facilitate inter-state trading
• Promote development of power market
• Improve access to information for all stakeholders
• Facilitate technological and institutional changes required for the development of competitive markets in bulk power and transmission services.
• Advise on the removal of barriers to entry and exit for capital and management, within the limits of environmental, safety and security concerns and the existing legislative requirements, as the first step to the creation of competitive markets.

1. RAM PRASAD BISMIL: REVOLUTIONARY AND A POET

TAG: GS 1: HISTORY

THE CONTEXT: Born on June 11, 1897, Bismil was a revolutionary freedom fighter with a poet’s heart. On his 126th birth anniversary, we remember Ram Prasad Bismil, whose words and actions have inspired generations of Indians.

EXPLANATION:

Who was Ramprasad Bismil?

• Ram Prasad Bismil was born on June 11, 1897 in a nondescript village in the United Provinces’ (now Uttar Pradesh) Shahjahanpur district.
• Fighting against the British Raj, he was involved in the Mainpuri Conspiracy of 1918 as well as the more famous Kakori Train Action of 1925. He was hanged in 1927 by British authorities for his involvement in the Kakori Train Action.
• He founded the Hindustan Republican Association (HRA, later Hindustan Socialist Republican Association).
• Today, he is a revered symbol of patriotism and Hindu-Muslim unit.
• He is one of India’s most revered freedom fighters, known as much for his revolutionary zeal as for his poetic profundity.

Early life and Arya Samaj connections

• He was born into a Rajput Tomar family, he learnt Hindi from his father and Urdu from a maulvi who lived nearby.
• He also went to an English medium school in Shahjahanpur.
• His exposure to multiple languages would develop his instincts as a writer and poet at a very early stage in his life.
• He joined the Arya Samaj and became a prolific writer and poet, penning patriotic verses in Hindi and Urdu under pen names like ‘Agyat’, ‘Ram’, and the one that is most known ‘Bismil’ (meaning ‘wounded’, ‘restless’).
• At the age of only 18, he penned the poem Mera Janm (My Birth), venting out his anger over the death sentence handed out to Arya Samaj missionary Bhai Parmanand.

The Mainpuri Conspiracy

• After graduating from school, Bismil got involved in politics. However, he would soon be disillusioned by the so-called moderate wing of the Congress Party.
• Bismil was not willing to “negotiate” or “beg” for his country’s freedom if the British did not accede, he was willing to take it by force.
• To achieve his ends, he started a revolutionary organisation called Matrivedi (The Altar of the Motherland) and joined forces with fellow revolutionary Genda Lal Dixit. Dixit was well-connected with dacoits of the state and wanted to utilise them in the armed struggle against the British.
• In 1918, Bismil wrote arguably his most famous poem, Mainpuri ki Pratigya, which was distributed across the United Provinces in pamphlets, bringing him adulation of nationalist locals and notoriety with the British.
• In order to collect funds for his fledgling organisation, he carried out at least three instances of looting at government offices in Mainpuri district. A massive manhunt was launched and Bismil was located which led to dramatic shootout at the end of which Bismil jumped into the Yamuna river and swam underwater to escape.

Founding the Hindustan Republican Association

• After his escape, Bismil would remain underground for the next few years, writing avidly but not undertaking any major revolutionary activity.
• During this time, he released a collection of poems called Man ki Lahar and also translated works such as Bolshevikon ki Kartoot (from Bengali).
• In February 1920, when all the prisoners in the Manipuri conspiracy case were freed, Bismil returned home to Shahjahanpur. There he initially worked gathering support for the Congress-led Non-Cooperation Movement but after Gandhi called it off post the incident at Chauri Chaura in 1922, Bismil decided to start his own party.
• Thus the Hindustan Republican Association was formed with Bismil, Ashfaqullah Khan, Sachindra Nath Bakshi and Jogesh Chandra Chatterjee as founding members. Figures such as Chandra Shekhar Azad and Bhagat Singh would also later join the HRA.
• Their manifesto, largely penned down by Bismil, was officially released on January 1, 1925 and titled Krantikari (Revolutionary).
• It proclaimed, ‘’The immediate object of the revolutionary party in the domain of politics is to establish a federal Republic of United States of India by an organized and armed revolution.”
• Their envisioned republic would be based on universal suffrage and socialist principles.

The Kakori Train Action

• Revolutionaries planned to rob the train between Shahjahanpur and Lucknow, which often carried treasury bags meant to be deposited in the British treasury in Lucknow.
• On August 9, 1925, as the train was passing the Kakori station, about 15 km from Lucknow, Rajendranath Lahiri, a member of the HRA who was already seated inside, pulled the chain and stopped the train. Subsequently, around ten revolutionaries, including Ram Prasad Bismil and Ashfaqullah Khan, entered the train and overpowered the guard. They looted the treasury bags (containing approx Rs 4,600) and escaped to Lucknow
• However, the robbery both enraged the British and upset the Indian public. Due to a misfiring Mauser gun, one passenger (a lawyer named Ahmad Ali) was killed during the robbery – dampening the response to it from the public at large.
• British led a violent crackdown with almost everyone (with the exception of Chandrashekhar Azad) involved in the Kakori Train Action arrested. Bismil was picked up in October.

Death and legacy

• After an eighteen month long trial, Bismil, Ashfaqullah and Rajendranath Lahiri were sentenced to death. The sentence was carried out on December 19, 1927. Ram Prasad Bismil was just 30 years old when he died.
• Today, Ram Prasad Bismil has also become a symbol of communal harmony due to his close friendship with fellow revolutionary poet Ashfaqullah Khan.

2. DEFAULT LOSS GUARANTEE (DLG) IN DIGITAL LENDING

TAG: GS 3: ECONOMY

THE CONTEXT: The RBI has allowed banks to accept Default Loss Guarantee (DLG) in digital lending only if the guarantee is in the form of a cash deposit, or fixed deposits in a bank with a lien in favour of the RE(Regulated Entities), or a bank guarantee in favour of the RE.

EXPLANATION:

• The RBI, after examining First Loss Default Guarantee (FLDG), permitted the arrangements between banks and fintechs or between two regulated entities (REs).
• The central bank said an RE can enter into DLG arrangements only with an LSP or other REs with which it has entered into an outsourcing (LSP) arrangement.
• The LSP-providing DLG must be incorporated as a company under the Companies Act, 2013.
• Banks and NBFCs should ensure that the total amount of DLG cover on any outstanding portfolio does not exceed 5% of the amount of that loan portfolio.
• The Reserve Bank of India (RBI) has allowed default loss guarantee (DLG), a safety-net arrangement among banks, non-banking finance companies, and lending service providers (LSPs, popularly known as fintech players) in the digital lending space.
• DLG is also known as First Loss Default Guarantee (FLDG). The RBI nod for compensating banks in case of default is expected to boost fintech activity in the financial sector.

What is an FLDG arrangement?

• FLDG is an arrangement whereby a third party such as a financial technology (fintech) player (LSP) compensates lenders if the borrower defaults.
• The LSP provides certain credit enhancement features such as first loss guarantee up to a pre-decided percentage of loans generated by it.
• For all practical purposes, credit risk is borne by the LSP without having to maintain any regulatory capital.

What does an LSP do?

• Lending service providers are new-age players who use technology platforms in the lending space.
• They are agents of a bank or NBFC who carry out one or more of a lender’s functions (in part or full) in customer acquisition, underwriting support, pricing support, disbursement, servicing, monitoring, recovery of specific loan or loan portfolio on behalf of REs as per the outsourcing guidelines of the RBI.

3. CAPTAGON PILLS CRISIS

TAG: PRELIMS PERSPECTIVE

THE CONTEXT: Reports suggest that the Islamic State (IS) and Syrian fighters widely consumed Captagon to increase alertness and suppress appetite during their gruelling battles. Such use of amphetamine-type drugs isn’t a recent phenomenon though during World War II, Nazi Germany and the Allied forces provided their troops with amphetamines.

EXPLANATION:

• As global isolation of Syria’s President Bashar al-Assad comes to an end with the Arab League reinstating Syria as its member, the discussions on the trade of Captagon pills have taken the centre-stage once again.
• Captagon is a highly addictive amphetamine-type drug, which is produced mainly in Syria and widely smuggled across West Asia.
• Sales of the drug have profited al-Assad, his associates and his family the pills have become a financial lifeline for them as Syria continues to struggle due to its economic crisis since the outbreak of the 2011 civil war.
• The reports of the rising prominence of Captagon first surfaced back in 2014, when it was found that the drug was being widely consumed by the Islamic State (IS) and Syrian fighters to increase alertness and suppress appetite during their gruelling battles.

What exactly is Captagon?

• Captagon is actually a counterfeit version of a medicine with the same brand name which was first produced in the 1960s by the German company Degussa Pharma Gruppe.
• They were manufactured to help treat attention deficit disorders, narcolepsy and other conditions.
• The original Captagon contained fenetylline, a synthetic drug of the phenethylamine family to which amphetamine also belongs.
• It was commercially sold in several countries until the 1980s and was banned due to fears of its highly addictive nature.
• In the following decades, new illicit tablets, mainly containing amphetamine, labelled Captagon surfaced in Bulgaria from where Balkan and Turkish criminal networks smuggled them to the Arabian Peninsula.
• The drug finally made a comeback post-2011 but this time in Syria, where a bloody civil war had plunged the country into an economic crisis.

What do amphetamine-based drugs do?

• Captagon pills, like other amphetamine-based drugs, stimulate the central nervous system, providing “a boost of energy, enhance someone’s focus, let someone stay awake for longer periods of time, and produce a feeling of euphoria.
• They don’t help someone gain “superhuman alertness, bravery, strength, or pain resistance” a person consuming any amphetamine-based drug might feel some sort of placebo effect though, which could lead to erratic behaviours.
• Captagon or other amphetamine-type drugs usually stay in the blood for around 36 hours.
• When taken orally, their peak effect occurs one to three hours after consumption, and effects last for as long as seven to 12 hours.

What are their side effects?

• Consumption of amphetamines can cause loss of appetite and weight, heart problems such as fast heart rate, irregular heartbeat, increased blood pressure, and heart attack, which can lead to death.
• They can also cause high body temperature, skin flushing, memory loss, problems thinking clearly, and stroke.
• The addiction, happens when the drug is consumed to get high or improve performance which can lead to tolerance.

How have militaries around the world used them?

• Although amphetamine was discovered in 1910 and chemically synthesised in 1927, its craze among militaries reached a crescendo during World War II.
• While Nazi Germany supplied Pervitin, a methamphetamine (now known as crystal meth) to its soldiers, the Allied forces gave their troops Benzedrine, which was amphetamine sulfate.
• The drug was also a significant part of their Blitzkrieg strategy, which involved carrying out a swift attack on the enemy and relentlessly pushing ahead with tank troops, day and night.
• The 2015 Vox report mentioned that the US Air Force still uses these performance-enhancing drugs.

4. DRIP IRRIGATION SCHEME

TAG: SCHEME

THE CONTEXT: Irregularities is noticed in Centre’s drip irrigation scheme in Jharkhand. The investigation found numerous violations Aadhaar cards were misused to create “ghost” beneficiaries with farmers completely unaware that money was being collected by private companies in their name; brand new equipment was gathering dust; and third-party verification by Nabcons was repeatedly falsified to beat the system.

EXPLANATION:

• An investigation has uncovered numerous violations and corrupt practices in the implementation of the “Per Drop More Crop — Micro Irrigation” (PDMC-MI) scheme in Jharkhand.
• Of the 94 beneficiaries who were tracked by this paper, only 17 were found to be actually utilising the scheme. Many apparent beneficiaries had no clue about their own enrollment in the scheme.

What is the “Per Drop More Crop” scheme?

• PDMC-MI is a central government scheme to promote micro irrigation drip or sprinkler systems which is implemented by the Department of Agriculture & Farmers’ Welfare, with roughly 40% central funding. The rest is financed by states and farmers themselves; some states like Jharkhand and those in the Northeast have a different break-up.
• The scheme was launched in 2006 and was subsumed into the Pradhan Mantri Krishi Sichai Yojna (PMKSY) in 2015 as one of its four components.
• The main objectives of PDMC-MI are to enhance water-use efficiency and increase productivity, thus bolstering farmer incomes.
• The operational guidelines say the scheme is meant mostly for so-called water-guzzling crops like sugarcane, cotton, and banana, even though cereals and pulses may also be brought under its ambit.
• States are supposed to install irrigation infrastructure, conduct publicity campaigns, create market linkages, and provide training and other expert support.
• Drip irrigation systems are costlier than sprinkler systems. In drip irrigation, water is targeted directly at the roots of crops using emitters that are fitted on a lateral tube.

Why is this scheme important for Jharkhand?

• The state’s agricultural economy, especially its major crop, paddy, is predominantly rain-dependent.
• In 2022, Jharkhand suffered its worst drought in 122 years on record during the June 1-August 15 paddy sowing season.
• Drip irrigation can be of great help in this situation it enhances water-use efficiency by cutting water usage by roughly 70%, doubles productivity, assures energy savings, and helps directly deliver fertilisers to crop roots.
• Effective operation of PDMC-MI which was first introduced in the state in 2010-11 — can potentially reduce distress outmigration and deliver a climate-resilient solution for the agrarian economy.

How were the farmers and companies chosen?

• State governments are required to identify the places where drip/sprinkler irrigation can be used; then, companies that can provide the irrigation infrastructure, and the scheme’s beneficiaries are identified.
• In Jharkhand, the enrolment process is controlled by the companies, who in most cases reach out to farmers and apply to the agriculture department on their behalf, and then receive work orders from the district office of the department. This process often does not reflect the farmer’s opinion on drip irrigation or his willingness to buy into it.
• Companies are enlisted as PDMC-MI providers in the state for a period of five years through a tendering process, but each enlisted company has to re-register every year. Every district is allotted 4-5 companies.

How does the scheme work?

• The contracted companies install drip irrigation systems on the beneficiaries’ land, up to a ceiling of 5 ha (12.3 acres), contiguous or otherwise.
• Contract farmers, those who have taken land on lease, are also eligible if they can produce a lease agreement for a minimum period of seven years from the date of approval of the application. Beneficiaries to have already availed of the scheme are barred for the next seven years.
• The subsidy amount paid to the companies by the government depends on various factors, including water requirement, plant to plan spacing, water quality, and specific local factors.

Is there a verification process before and after installation?

• The process of applying for and receiving assistance under PDMC-MI incorporates various steps to ensure transparency and honesty within the system
• Pre-installation, the farmer fills out a form with all personal details, including Aadhaar, and attaches an affidavit detailing the land in possession. The mukhiya of the panchayat attests the documents, and a panchayat member or a government official certifies the authenticity of the details to the best of their knowledge.
• Post-installation of the drip irrigation infrastructure, the farmer writes a “satisfaction letter” stating that he has not received any subsidy, the installation is complete, and the requisite training has been provided to him. The farmer must also make a video statement, geotag it with the latitude and longitude of the farm with the drip irrigation equipment, and send it to Nabcons, the consultancy arm of the National Bank for Agriculture and Rural Development (NABARD), for verification against the beneficiaries’ Aadhaar details.
• However, Nabcons relies on company agents/ representatives to reach the beneficiaries, which leaves scope for manipulation of data. The Investigation found that middlemen (company agents) and Nabcon verification personnel were in cahoots.
• Irrespective of the third party verification, the agriculture department is supposed to conduct verification exercises for 50% of beneficiaries this does not happen currently.

5. EU MIGRATION DEAL

TAG: GS 2: INTERNATIONAL RELATIONS

THE CONTEXT: European Union ministers agreed  on how to handle irregular arrivals of asylum-seekers and migrants, a deal hailed as a breakthrough after almost a decade of bitter feuds on the sensitive matter.

EXPLANATION:

• EU states is blamed over providing for the new arrivals since more than a million people mostly fleeing the war in Syria caught the EU bloc by surprise by reaching it across the Mediterranean in 2015.
• The bloc has since tightened external borders and its asylum laws, and struck deals in the Middle East and North Africa to have more people stay there. U.N. data shows fewer than 160,000 sea migrants made to it Europe last year.
• The bloc hopes lower irregular immigration would allow EU countries to restart cooperation to spread more evenly the task of taking care of arriving refugees and migrants

WHAT IS NEW PACT?

• Each EU country would be assigned a share of the 30,000 people overall the bloc is expected to accommodate in its joint migration system at any given time.
• That will be calculated based on the size of the country’s GDP and population, the number of irregular border crossings including via sea rescue operations, and more.
• Countries unwilling to take in people would instead be able to help their hosting peers through cash at least 20,000 euros per person a year equipment or personnel.
• The agreement would introduce a new expedited border procedure for those deemed unlikely to win asylum to prevent them from lingering inside the bloc for years.
• Instead, they should be sent away within six months if their asylum applications fails, one of several shortened deadlines in the deal.
• That mechanism would apply to all those deemed dangerous, uncooperative or coming from countries with low asylum recognition rates in the EU like India or Serbia.
• EU countries could also apply the speedy procedure to people picked up in the sea, caught while trying to get in illegally or filing for asylum at the border rather than in advance

ISSUES:

• It can create more overcrowded migration camps on the edges of the EU.
• New plan could lead to protracted detention of minors and criticised it as focusing on keeping people away rather than helping those in need.
• There is opposition from Warsaw and Budapest, however, majority deal among the 27 EU countries. Spain will now lead more negotiations on behalf of the member states with the European Parliament.

1. CYCLONE AND ITS IMPACT ON MONSOON

TAG: GS 1: GEOGRAPHY

THE CONTEXT: A cyclonic storm, named Biparjoy, has developed in the Arabian Sea. The cyclone is predicted to gain its strength and develop into a very severe cyclonic storm by June 13. Biparjoy’ was suggested by Bangladesh and the word means ‘disaster’ or ‘calamity’ in Bengali. The naming of cyclones is done by countries on a rotational basis, following certain existing guidelines. The impact of global warming on the monsoon are manifest in the onset, withdrawal, its seasonal total rainfall, and its extremes. Global warming also affects the cyclones over the Indian Ocean and the typhoons over the northwestern Pacific Ocean.

EXPLANATION:

• According to an Indian Meteorological Department (IMD), the cyclone would affect along the coastline of Karnataka, Goa and Maharashtra.

How did Cyclone Biparjoy get its name and how are cyclones named?

• The naming of cyclones is done by countries on a rotational basis, following certain existing guidelines.
• There are six regional specialised meteorological centres (RSMCs) and five regional Tropical Cyclone Warning Centres (TCWCs) mandated for issuing advisories and naming of tropical cyclones.
• IMD is one of the six RSMCs to provide tropical cyclone and storm surge advisories to 13 member countries under the WMO/Economic and Social Commission for Asia-Pacific (ESCAP) Panel including Bangladesh, India, Iran, Maldives, Myanmar, Oman, Pakistan, Qatar, Saudi Arabia, Sri Lanka, Thailand, United Arab Emirates and Yemen.
• RSMC, New Delhi is also mandated to name the Tropical Cyclones developing over the north Indian Ocean (NIO), including the Bay of Bengal (BoB) and the Arabian Sea (AS).
• The WMO/ESCAP Panel on Tropical Cyclones in 2000 agreed in principle to assign names to the tropical cyclones in these seas.
• After deliberations, the naming began in September 2004. This list contained names proposed by then eight member countries of WMO/ESCAP PTC, viz., Bangladesh, India, Maldives, Myanmar, Oman, Pakistan, Sri Lanka and Thailand. It was expanded to include five more countries in 2018 — Iran, Qatar, Saudi Arabia, United Arab Emirates and Yemen
• The list of 169 cyclone names released by IMD in 2020 was provided by these countries — 13 suggestions from each of the 13 countries.

Some rules are to be followed while naming cyclones, such as:

*The proposed name should be neutral to (a) politics and political figures (b) religious believes, (c) cultures and (d) gender

*Name should be chosen in such a way that it does not hurt the sentiments of any group of population over the globe

*It should not be very rude and cruel in nature

*It should be short, easy to pronounce and should not be offensive to any member

*The maximum length of the name will be eight letters

Is it not rare for cyclones to develop in the Arabian sea?

• There are fewer number of cyclones in the Arabian Sea than the Bay of Bengal, but it is not uncommon. In fact, June is one of the favourable months for the formation of cyclones in the Arabian Sea.
• A cyclone is a low-pressure system that forms over warm waters. Usually, a high temperature anywhere means the existence of low-pressure air, and a low temperature means high-pressure wind. In fact, that is one of the main reasons why we see greater number of cyclones in the Bay of Bengal compared to Arabian Sea.
• Bay of Bengal is slightly warmer. Because of climate change, the Arabian Sea side is also getting warmer, and as a result, the number of cyclones in the Arabian Sea is showing an increasing trend in the recent trend.

Cyclone formation:

• As air warms over hotter regions, it ascends, leading to low pressure at the surface it is covering. When air cools in colder areas it descends, leading to high pressure at the surface.
• In a depression or low-pressure situation, the air is rising and blows in an anticlockwise direction around the low in the northern hemisphere and in a clockwise direction in the southern hemisphere. This is because of the Coriolis effect, a result of the earth’s rotation on its axis.
• As warm air rises and cools, water vapour condenses to form clouds and this can lead to rains.
• Weather systems formed over the Bay of Bengal in the peak of summer in May are among the strongest in the North Indian Ocean region.
• Warm seas present ripe conditions for the development and strengthening of cyclones and fuel these systems over the water.

How does a cyclone affect the monsoon’s onset?

• The impact of global warming on the monsoons are manifest in the onset, withdrawal, its seasonal total rainfall, and its extremes. Global warming also affects the cyclones over the Indian Ocean and the typhoons over the northwestern Pacific Ocean.
• There is cyclone formations in the pre-monsoon cyclone season, closer to the monsoon onset, arguably due to the influence of a warmer Arctic Ocean on winds over the Arabian Sea.
• The monsoon is also affected by the three tropical oceans – Indian, Atlantic, and Pacific; the ‘atmospheric bridge’ from the Arctic; and the oceanic tunnel as well as the atmospheric bridge from the Southern Ocean (a.k.a. the Antarctic Ocean)
• A ‘bridge’ refers to two faraway regions interacting in the atmosphere while a ‘tunnel’ refers to two remote oceanic regions connecting within the ocean.

Mawar, Biparjoy, and Guchol

• Cyclone Biparjoy is not interacting much with the monsoon trough at this time. However, its late birth as well as the late onset of the monsoon are both closely related to typhoons in the northwestern Pacific Ocean.
• On May 19, Typhoon Mawar was born and dissipated away by June 3. Mawar qualified as a ‘super typhoon’ and is thus far the strongest typhoon to have taken shape in May. It is also the strongest cyclone of 2023 so far.
• Tropical storm Guchol is now active just to the east of the Philippines and is likely to continue northwest before veering off to the northeast. These powerful typhoons are thirsty beasts and demand moisture from far and wide.

2. MOON MISSIONS

TAG: GS 3: SCIENCE AND TECHNOLOGY

THE CONTEXT: Space is the newest frontier where the United States of America and China are competing. While China has set 2030 as its deadline to land on the moon, US’ Artemis mission is set to put its crew on the moon in 2025.

EXPLANATION:

• China sent its first civilian into space through the Shenzhou 16 spacecraft. The three-member crew will complete a five-month mission at the space station.
• With the successful landing of a second manned crew aboard its space station, the Chinese Manned Space Agency aims to land astronauts on the moon before 2030.
• On the other hand, the US plans to send a manned crew to the moon by 2025 under the Artemis programme.

Artemis programme?

• Succeeding the Apollo missions which sent seven manned crews to the moon and back between 1969 and 1972, the Artemis programme aims to land on the moon, set up a long-term base and then send the first astronauts to Mars.
• Led by the US, the programme is a joint venture of several countries, including Australia, Canada, Italy, Japan, Luxembourg, the United Arab Emirates, the United Kingdom, Ukraine, South Korea, New Zealand, Brazil, Poland, Mexico, Israel, Romania, Bahrain, Singapore, Colombia, France, Saudi Arabia, Rwanda, Nigeria, Czech Republic, and Spain. These countries are signatories of an open treaty called the ‘Artemis accords’ which aims to put humans back on the moon.

Artemis-I

• For Artemis I, NASA built a super heavy-lift launch vehicle called the ‘Space Launch System’ (SLS) to carry its spacecraft , astronauts, and cargo directly to the moon on a single mission.
• NASA also built a human spacecraft named ‘Orion’ for deep-space missions to travel to the moon and Mars. It can also carry a human crew to space, provide emergency abort capability, sustain astronauts during their missions and provide safe re-entry from deep space. Orion spacecraft returned to NASA’s Kennedy Space Center in Florida on after completing its 1.4-million-mile journey from Earth to the moon and back.

Artemis-II

• Under Artemis-II, NASA plans to launch a crew of four astronauts onboard the SLS, perform multiple manoeuvres on an expanding orbit around the Earth on the Orion, do a lunar flyby and return back to Earth. The ten-day mission is slated for 2024.

Artemis-III

• Artemis-III will mark the return of humans to the moon in 2025. Similar to Artemis-I and II, the crew onboard the Orion will be launched to the moon. After the ICPS pushes the Orion towards the lunar orbit, the Orion will perform two engine burns to set itself on a Near-Rectilinear Halo Orbit (NRHO) in the moon’s gravitational orbit. The NHRO will help to establish a landing site on the moon.
• NASA has selected SpaceX to provide the lunar lander which will transport the crew from Orion to the surface of the moon and back again.

Artemis IV and onwards

• In Artemis IV, NASA aims to land a second crew on the moon in 2028 and establish a Lunar Gateway station whose components will be launched prior to the Artemis IV mission to the NHRO. The aim is to set up a permanent base on the lunar surface and then proceed to send astronauts to Mars from the moon.

China’s Moon mission

Chang’ e 1 to 5

• Dubbed as the Chang’e mission, the Chinese Lunar Exploration Program has already launched two lunar orbiters (Chang’ e 1 & 2) and two lunar rovers (Chang’e 3 & 4) one on the unexplored south pole of the far side of the moon.
• The Chinese launched Chang’e 5 in, 2020, onboard its Long March 5 rocket. The spacecraft entered the lunar orbit, and its descender slowly soft-landed in the Mons Rumker region of Oceanus Procellarum on the south pole of the moon

Chang’ e 6,7 & 8

• China aims to continue its research of the moon’s south pole, sending two missions Chang’e 6 and Chang’e 7 — in 2024 and 2026 to bring back samples. Chang’ e 7 comprises an orbiter, a relay satellite, a lander, and a mini-flying probe and will explore the lunar south pole for resources. It will also aim to detect water ice in the permanently shadowed area.
• China further plans to build a permanent science base on the moon. Towards this end, Chang’ e 8 will carry a lander, a rover, and a flying detector along with a 3D-printing module to test the construction of a lunar base.

International Lunar Research Station

• Constructing a lunar base is a joint venture between China and Russia. The two nation’s space agencies China National Space Administration and Russia’s State Space Corporation (Roscosmos) issued a joint statement that they will collaborate in the construction of an International Lunar Research Station (ILRS) for the peaceful exploration and use of the Moon.
• The station will be equipped with energy supplies, communications and navigation, space shuffling, lunar research and ground support services and a command centre. Apart from Russia, Pakistan, Argentina and international organizations including the Asia Pacific Space Cooperation Organization have agreed to participate in the project, while at least ten other countries are considering it. 

3. MINIMUM SUPPORT PRICE (MSP)

TAG: GS 3: ECONOMY

THE CONTEXT: Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister on approved raising minimum support prices (MSP) of kharif crops for the 2023-24 marketing season. Centre has set the Minimum Support Price (MSP) for paddy sown in the kharif or monsoon season at ₹2,183 per quintal, a hike of ₹143 per quintal in comparison to last year. The 2023-24 MSPs for 17 kharif crops and variants were approved at a meeting of the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister.

EXPLANATION:

• Food Minister told after the CCEA meeting that farmers will benefit from the increase in the MSP at a time when the retail inflation is declining.
• In agriculture, MSP is being fixed from time to time based on the recommendations of Commission for Agricultural Costs and Prices (CACP). The increase in MSP of the kharif crops for this year is highest compared to the previous years.

Minimum Support Price (MSP) :

• Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.
• The minimum support prices are announced by the Government of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
• MSP is price fixed by Government of India to protect the producer – farmers – against excessive fall in price during bumper production years. The minimum support prices are a guarantee price for their produce from the Government.
• In formulating the recommendations in respect of the level of minimum support prices and other non-price measures, the Commission takes into account, apart from a comprehensive view of the entire structure of the economy of a particular commodity or group of commodities, the following factors:-

1. Cost of production
2. Changes in input prices
3. Input-output price parity
4. Trends in market prices
5. Demand and supply
6. Inter-crop price parity
7. Effect on industrial cost structure
8. Effect on cost of living
9. Effect on general price level
10. International price situation
11. Parity between prices paid and prices received by the farmers.
12. Effect on issue prices and implications for subsidy

• Government announces minimum support prices (MSPs) for 22 mandated crops and fair and remunerative price (FRP) for sugarcane.
• The mandated crops are 14 crops of the kharif season, 6 rabi crops and two other commercial crops. In addition, the MSPs of toria and de-husked coconut are fixed on the basis of the MSPs of rapeseed/mustard and copra, respectively.
• The list of crops are as follows.

1. Cereals (7) – paddy, wheat, barley, jowar, bajra, maize and ragi
2. Pulses (5) – gram, arhar/tur, moong, urad and lentil
3. Oilseeds (8) – groundnut, rapeseed/mustard, toria, soyabean, sunflower seed, sesamum, safflower seed and nigerseed
4. Raw cotton
5. Raw jute
6. Copra
7. De-husked coconut
8. Sugarcane (Fair and remunerative price)
9. Virginia flu cured (VFC) tobacco

4. VADNAGAR

TAG: GS-1: ART AND CULTURE

THE CONTEXT: In December2022, northern Gujarat’s Vadnagar city and the Sun Temple of Modhera, both part of the Mehsana district, made it to the Tentative list of the UNESCO World heritage sites. There are new plans for PM’s school in his hometown Vadnagar lets have a look on archeological significance of the city.

EXPLANATION:

• The Ministry of Culture has now announced the redevelopment of a primary school here attended by Prime Minister in Vadnagar. Children from across the country will spend a week at the Prerna school to learn “how to live a very evolved life”, as part of a joint initiative by the central and state governments.
• Vadnagar has been known by names like Anartapura, Anandapur, Chamatkarpur and so on, during different periods of its history, and has often been compared to Varanasi in terms of both claiming to be “living cities”.

Archaeological excavations at Vadnagar:

• Vadnagar was first excavated in 1953, mainly to understand its “ceramic sequence” which revealed a flourishing conch shell trade industry, with bangles and other wares also found here.
• Five periods of continuous settlement have been identified at the site from its formative period. An unbroken sequence of seven successive cultures going back to 750 BCE was found and divided into seven periods: pre-rampart phase (in 2nd century BCE), Rampart phase (2nd century BCE – 1st century CE), Kshatrapa phase (1st – 4th century CE), post-Kshatrapa phase (5th – 9th/10th century CE), Solanki phase (10th – 13th century CE), Sultanate-Mughal phase (14th – 17th century CE) and Gaekwad phase (17th/18th – 19th century CE.
• Most of the excavations found – like the fortification, a Buddhist monastery, votive stupas, house-complexes, lanes/streets and industrial hearth – are from pre-2nd century BCE to the Gaekwad period (18th – 19th century CE).

Vadnagar as a ‘living city’:

• These structures showcase the architectural influence of various cultural periods. Extensive water management system in and around the town also played a role in its continuity.
• The town represents a continuously evolving historic urban landscape/area which played a major role in the hinterland trade network of Western India. The continuity of the historic town proves its resilience and outstanding universal value unlike the sites like Harappa and Kalibangan, (Rajasthan) which were abandoned eventually states the description of Vadnagar in UNESCO’s Tentative List.
• Vadnagar was an important centre of Sammitya Buddhists, a sect which Chinese traveller Hieun Tsang also supported.
• It was located at the intersection of two major trade routes – Central India to Sindh and northwest, and Gujarat to Rajasthan and north India, Vadnagar was also known as one of the important land ports (Sthal Pattan) of Gujarat.
• A mound here rises gently and the highest point in the middle of the settlement is 25 metres high, called Darbargadh. Such types of a mound on which Vadnagar is built are not available in other parts of India.
• Human habitation existed here from mid-8th century BCE till date, as per ASI findings. “These findings uncovered a unique aspect of the town: an uninterrupted extensive human habitation and cross-cultural evolution that sustained itself and continues till date. Such a long period of human habitation is exceptional in the Indian scenario with very few sites claiming similar uninterrupted continuity.

Evidence of Buddhism

• Hieun Tsang or Xuanzang visited Vadnagar around 641 CE and called it o-nan-to-pu-lo (Anandpur) who recorded that ‘there are more than 1000 monks of the Sammitiya School or Little Vehicle in 10 monasteries’. He also records Vadnagar as a capital city which has no king.
• The first evidence of Vadnagar’s Buddhist association is in the form of a red sandstone image of a Bodhisattva or a deity-like revered figure in Buddhism. An inscription on the pedestal of the image records that it was brought for the Chaitya of Sammatiya. The image is an example of Mathura art and seems to have been brought from there.
• Abul Fazl’s Ain-e-Akbari from the 16th century makes a note of Vadnagar or Barnagar, as a “large and ancient city containing 3,000 pagodas, near each of which is a tank” and “chiefly inhabited by Brahmans.”
• The ASI, in its submission to the UNESCO, claims a “Roman connection” in the finding of an intaglio in clay – a coin mould of Greco-Indian king Apollodotus II (80-65 BC) – and a sealing with impression of a Roman coin belonging to Valentinian-I (364-367 CE). Careful analysis and study of non-indigenous pottery such as torpedo jars and Glazed ware establish the site’s contacts with the Sassanid region and West Asia.

The current town

• Vadnagar is an L-shaped town spread across 85 hectares, with the Sharmishtha Lake located on its north eastern edge.
• It is surrounded by the remains of a fortification wall, punctured by a series of gates that mark the entry and exit points of the town. There are primary entry and exit points to the town in all cardinal directions, along with gateways that are elaborate single storey stone structures.
• While most gates are mediaeval, the Ghanskol and Pithori gates are of the 11th- 12th century CE. Other prominent gates are Nadiol Gate, Amtol Gate, Amarthol Gate and Arjun Bari Gate (protected by the ASI).
• The Ambaji Mata Temple dates back to 10th-11th century CE, while other important Hindu and Jain temples within the town are from the 17th century onwards.
• While the Hatkeshwar temple is located outside Nadiol gate, the two identical glory gates outside the fortification wall to the north of the town are the Kirti Torans, built in yellow sandstone without mortar or any other cementing material.

5. BONN MEETING: TAKING STOCK OF CLIMATE ACTION

TAG: GS 3: ENVIRONMENT

THE CONTEXT: The climate meeting in Bonn has seen old demands raised and old faultlines come up. In different ways, countries have been taking measures to respond to climate change since at least the mid-1990s, though it is only in the last decade or so that these actions have become significant enough for any meaningful impact. But the global response has never kept pace with the worsening of the climate crisis, whose seriousness has increased rapidly in the last few years.

EXPLANATION:

• Negotiators from around the world meeting in the German city of Bonn to discuss ways to strengthen their collective response to climate change. This meeting in Bonn, at the headquarters of the UN Climate Change, happens every year. The work done and decisions taken here feed into the year- ending annual climate change conferences.
• One of the most important tasks to be accomplished at this year’s Bonn meeting is what is known as Global Stocktake, or GST, a term that is expected to come up frequently in climate change conversations this year.

Global Stocktake or GST:

• Mandated by the 2015 Paris Agreement, GST is an exercise aimed at assessing the progress being made in the fight against climate change, and deciding ways and means to enhance the global effort to bridge the adequacy gap.
• This stocktake exercise is expected to result in a significant increase in the global response to climate change, not just in terms of reductions in greenhouse gas emissions, but also in terms of adaptation, provision for finance and availability of technology.
• The current stocktake it has been going on for more than a year now and is supposed to conclude this year is the first such exercise and is mandated by the Paris Agreement to happen every five years hereafter.

Highlights of the meeting:

• There is a wealth of scientific evidence that shows that the current set of actions being taken by the world is woefully inadequate to limit the global temperature rise within 1.5 degree Celsius from pre-industrial times.
• The most notable of these is the sixth assessment report of the Intergovernmental Panel on Climate Change (IPCC), published over the last four years.
• The world needs to cut its emissions by almost half by 2030 from the 2019 levels if it has to retain any realistic chances of achieving the 1.5 degree target. At current levels of climate action, the world is headed to a nearly 3 degree Celsius warmer world by 2100.
• The United States said bridging the gap was not the sole responsibility of the developed countries, and it would not accept any attempt to include such suggestions in the GST decisions, either explicitly or through references to phrases such as “closing of pre-2020 gaps”.

• Climate actions in the pre-2020 period were directed by the Kyoto Protocol, the predecessor to the Paris Agreement. A set of about 40 developed countries, including the United States, had specifically allocated emissions reduction targets, besides other obligations, to be met by 2020.
• India reacted strongly to the US suggestion and said it would not accept any “prescriptive messages” from GST on what the content of a country’s climate action plan, called Nationally Determined Contributions. India said it retained its “sovereign right” to determine its climate targets in pursuit of its national goals. It also said that it did not accept the suggestions that NDCs must necessarily be economy-wide, covering all sectors or all greenhouse gases (like methane). It aligned itself with other developing countries in reiterating the demand for the closing of pre-2020 gaps.
• The most forceful argument on pre-2020 gaps came from China, which said it was disappointed to see that the repeated demands of 134 developing countries had not been captured adequately in GST discussions so far. It said the pre-2020 gaps were an integral part of the global efforts towards fulfilling the Paris Agreement targets, and pointed out that there was now irrefutable scientific evidence to show that a bulk of the carbon dioxide emissions from 1850 to 2018 had been generated before 1990.
• Several other points of discussion under GST as finance, adaptation, technology transfer are also heavily contested. Negotiators are expected to finish the technical discussions on GST in Bonn.
• Its findings would be presented at the annual year-ending climate conference, this time happening in Dubai. The Dubai meeting will, hopefully, take the final decisions on the GST.

1. DEPOSIT INSURANCE COVER FOR PREPAID PAYMENT INSTRUMENT (PPIs)

TAG: GS 3: ECONOMY

THE CONTEXT: An RBI-appointed committee has recommended that the central bank should examine the extension of Deposit Insurance and Credit Guarantee Corporation (DICGC) cover to PPIs, which, at present, is available only to bank deposits.

EXPLANATION:

• The committee said the RBI has authorised a number of banks and non-banks entities to issue PPIs in the country recently. The money kept in wallets is in the nature of deposits. However, currently, the DICGC cover extends only to bank deposits.
• Prepaid Payment Instrument (PPI) holders may soon get protection for their money against any fraud or unauthorised payment transactions.

What are PPIs?

• PPIs are instruments that facilitate the purchase of goods and services, conduct of financial services and enable remittance facilities, among others, against the money stored in them. PPIs can be issued as cards or wallets.
• There are two types of PPIs – small PPIs and full-KYC (know your customer) PPIs. Further, small PPIs are categorized as – PPIs up to Rs 10,000 (with cash loading facility) and PPIs up to Rs 10,000 (with no cash loading facility).
• PPIs can be loaded/reloaded by cash, debit to a bank account, or credit and debit cards. The cash loading of PPIs is limited to Rs 50,000 per month subject to the overall limit of the PPI.

Who can issue PPI instruments?

• PPIs can be issued by banks and non-banks after obtaining approval from the RBI. As in November, 2022, over 58 banks including Airtel Payments Bank, Axis Bank, Bank of Baroda, Jio Payments Bank, Kotak Mahindra Bank, Standard Chartered Bank, UCO Bank and Union Bank have been permitted to issue and operate prepaid payment instruments.
• There are 33 non-bank PPI issuers. Some of the non-bank PPI issuers are Amazon Pay (India), Bajaj Finance, Delhi Metro Rail Corporation Ltd, Manappuram Finance Ltd, Ola Financial Services, Razorpay Technologies and Sodexo SVC India Pvt.

What is Deposit Insurance and Credit Guarantee Corporation (DICGC)?

• DICGC is a wholly-owned subsidiary of the RBI and provides deposit insurance. The deposit insurance system plays an important role in maintaining the stability of the financial system, particularly by assuring the small depositors of the protection of their deposits in the event of a bank failure.
• The deposit insurance extended by DICGC covers all commercial banks including local area banks (LABs), payments banks (PBs), small finance banks (SFBs), regional rural banks (RRBs) and co-operative banks, that are licensed by the RBI.

What does the DICGC insure?

• DICGC insures all deposits such as savings, fixed, current and recurring including accrued interest. Each depositor in a bank is insured up to a maximum of Rs 5 lakh for both principal and interest amount held by them as on the date of liquidation or failure of a bank.
• The earlier insurance cover provided by DICGC was Rs one lakh. However, the limit of insurance cover for depositors in insured banks was raised to Rs 5 lakh in 2020.

2. SMART BANDAGE

TAG: GS 3: SCIENCE AND TECHNOLOGY

THE CONTEXT: A wearable, wireless, flexible “smart bandage” as big as a finger can deliver drugs while monitoring the healing status of wounds and transmitting data to a smartphone.

EXPLANATION:

• A normal bandage heals by slowly closing wound as the body repaired it, restoring the skin to nearly its initial condition. It consists of various stages in which different skin cells participate.
• Sometimes, complications from conditions like diabetes, insufficient blood supply, nerve damage, and immune system dysfunction can impair wound healing, resulting in chronic wounds.
• In March 2023, a study was published in Science Advances that offered to help accelerate healing in such cases using a wearable, wireless, mechanically flexible “smart bandage” as big as a finger.

What is a smart bandage and how it works?

• This device is built in Dr. Gao’s lab, is assembled on a soft, stretchable polymer that helps the bandage maintain contact with and stick to the skin. The bioelectronic system consists of biosensors that monitor biomarkers in the wound exudate. (Exudates are the fluids exiting the wound.)
• Data collected by the bandage is passed to a flexible printed circuit board, which relays it wirelessly to a smartphone or tablet for review by a physician. A pair of electrodes control drug release from a hydrogel layer as well as stimulate the wound to encourage tissue regrowth.
• In the new design, the researchers enclosed the sensors in a porous membrane, protecting their parts and increasing their operational stability.
• Biosensors determine the wound status by tracking the chemical composition of the exudates, which changes as the wound heals. Additional sensors monitor the pH and temperature for real-time information about the infection and inflammation.
• The wireless nature of the device sidesteps the problems of existing electrical stimulation devices, which usually require bulky equipment and wired connections, limiting their clinical use.
• The researchers tested the properties of their bandage in vitro. They loaded an antimicrobial substance onto the hydrogel platform, and found it – using the bandage’s features – to be effective against a variety of bacteria commonly associated with chronic wounds. Investigations using skin cells showed that the bandage’s electrical stimulation did enhance tissue regeneration.
• It doesn’t have to be removed frequently to monitor the status and apply antibiotics.

3. COMMISSION OF RAILWAY SAFETY (CRS)

TAG: PRELIMS PERSPECTIVE

THE CONTEXT: Investigation into the recent tragic train accident in Odisha, the deadliest train crash in India in over two decades, is being conducted by the Commissioner of Railway Safety for the south-eastern circle. Rail safety commissioners are part of the Commission of Railway Safety (CRS), a government body that acts as the railway safety authority in the country.

EXPLANATION:

Commission of Railway Safety:

• CRS deals with matters related to safety of rail travel and operations, among some other statutory functions – inspectorial, investigatory, and advisory – as laid down in the Railways Act, 1989.
• Investigating serious train accidents is one of the key responsibilities of the CRS, which is headquartered in Lucknow, Uttar Pradesh.
• However, CRS does not report to the Ministry of Railways of the Railway Board. It is, in fact, under the administrative control of the Ministry of Civil Aviation (MoCA). The reason or principle behind this, put simply, is to keep the CRS insulated from the influence of the country’s railway establishment and prevent conflicts of interest.

Early days of railways in India and safety oversight:

• The first railways in India came into being in the 1800s and were constructed and operated by private companies.
• At the time, the British Indian government appointed ‘consulting engineers’ for effective control and oversight of the developing railway network and operations. Their job was to ensure efficiency, economy, and safety in railway operations in India.
• Later, when the British Indian government undertook construction of railways in the country, the consulting engineers were re-designated as ‘government inspectors’, and in 1883, their position was recognised statutorily.
• In the first decade of the twentieth century, the Railway Inspectorate was placed under the Railway Board, which was established in 1905.
• As per the Indian Railway Board Act, 1905, and a notification by the then Department of Commerce and Industry, the Railway Board was entrusted with powers and functions of the government under various sections of the Railway Act and was also authorised to make rules for railway operations in India. This effectively made the Railway Board the safety controlling authority for railways in India.

Separation of safety supervision function and Railway Board:

• The Government of India Act, 1935 said that functions for securing the safety of railway operations, both for the travelling public and personnel operating the railways, should be performed by an authority independent of the federal railway authority or the Railway Board. These functions included conducting railway accident probes. But due to the outbreak of the Second World War in 1939, the idea did not take off and the Railway Inspectorate continued to function under the control of the Railway Board.
• In 1939, a panel headed by the then chief inspecting officer of the British Railways, A.H.L. Mount, suggested that the separation of the Railway Inspectorate from the Railway Board.

Transfer of Railway Inspectorate from Railway Board’s control

• In 1940, the Central Legislature endorsed the idea and principle of separation of the Railway Inspectorate from the Railway Board, and recommended that the senior government inspectors of the railways should be placed under the administrative control of a different authority under the government.
• Consequently, in May 1941, the Railway Inspectorate was separated from the Railway Board and put under the administrative control of the then Department of Posts and Air.
• Since then, the Inspectorate, which was re-designated as the CRS in 1961, has been under the control of the central ministry exercising control over civil aviation in India.

4. UNIFIED PORTAL FOR ‘GOBARdhan’

TAG: PRELIMS PERSPECTIVE

THE CONTEXT: The union minister for Jal Shakti  launched the unified registration portal for ‘GOBARdhan’ which will act as a one stop repository to assess investment and participation in biogas or compressed biogas (CBG) sector at pan-India level and streamline the process of setting up biogas plants in India.

EXPLANATION:

• Any government, cooperative or private entity operating or intending to setup a biogas, CBG or Bio CNG plant in India can obtain a registration number by enrolling in the unified registration portal.
• The registration number will enable availing of multitude of benefits and support from the ministries and departments of government of India.
• States have been advised to get their CBG/Biogas plant operators registered on the portal on priority to avail existing and upcoming support from the Centre.
• It is an example of cooperative federalism as the stakeholder central ministries, all line departments of centre and states have come together in development and deployment of the portal.

Galvanizing Organic Bio-Agro Resources Dhan (GOBARdhan)

• It is a Jan Andolan on Safe Management of Cattle and other Biodegradable Waste in Rural India.
• It is a umbrella initiative of government of India, based on the whole of government approach and aims to convert waste to wealth towards promoting circular economy.
• Centre intends to build a robust ecosystem for setting up Biogas/Compressed Biogas (CBG)/ Bio-Compressed Natural Gas (CNG) plants to drive sustainable economic growth.
• GOBARdhan scheme is being pursued as a national programme priority under Swachh Bharat Mission Grameen-Phase II.
• Department of Drinking Water and Sanitation is working with Ministry of New and Renewable Energy, Ministry of Petroleum and Natural Gas, Department of Animal Husbandry and Dairying, Department of Agriculture, Cooperation and Farmers Welfare, Department of Agricultural Research and Education, Department of Rural Development, state governments, public and private sector institutions and village communities to give this a shape of “Jan Andolan” so that community collective action on GOBARdhan is achieved. I

Objectives of GOBARdhan:

• To support villages safely manage their cattle and agricultural waste, and make the villages clean
• To support communities in converting cattle and organic waste into wealth using treatment systems.
• To convert organic waste, especially cattle waste, to biogas and organic manure for use in rural areas
• To promote environmental sanitation and curb vector-borne diseases through effective
  disposal of waste in rural areas
• To promote rural employment and income generation opportunities by involving entrepreneurs, SHGs and youth groups in seƫting up, operating and managing GOBARdhan units

Benefits:

• Manages waste: Helps manage the major solid waste in villages, i.e, cattle dung, and promotes environmental sanitation
• Generates organic manure: Helps generate organic manure, which boosts agriculture and farm
  productivity
• Increases employment: Promotes employment and income generation opportunities for SHGs/
  farmers groups
• Improves savings: Promotes household income and savings as the use of biogas as fuel will
  cut down the LPG cost
• Protects health: Substantially reduces the incidence of vector-borne diseases and promotes
  public health

5. KERALA FIBRE OPTICAL NETWORK (KFON)

TAG: PRELIMS PERSPECTIVE

THE CONTEXT: The Kerala government officially launched the Kerala Fibre Optical Network (KFON), one of its flagship projects to ensure high speed broadband internet access to all houses and government offices.

EXPLANATION:

• Through KFON, Kerala, which was the first state to declare the right to internet as a basic right, aims to reduce the digital divide by ensuring high speed broadband internet access to all houses and government offices.
• It is also intended to give a fillip to e-governance and accelerate Kerala’s journey towards being a knowledge-based economy.

What is KFON?

• KFON will act as an infrastructure provider. It is an optical fibre cable network of 30,000 kms, with 375 Points-of-Presence across Kerala.
• The KFON infrastructure will be shared with all service providers, including cable operators. While KFON will do the cable work for government offices, individual beneficiaries will have to depend on private, local internet service providers.
• The KFON infrastructure would also benefit private service providers, as they can use its cable network. Internet connectivity to the households would be provided by local ISP/TSP/cable TV providers.
• KFON promises an internet speed from 10 mbps to 10 Gbps.

Beneficiaries:

• In the first phase, it was aimed to provide Internet connections to 14,000 BPL families, with 100 each from the State’s 140 assembly constituencies.
• The panchayats and the urban local bodies were given the responsibility of choosing the beneficiaries.
• Each household will get 1.5 GB of data per day at 15 Mbps speed.

Who are the stakeholders?

• The KFON project is a joint venture of Kerala State Electricity Board and Kerala State IIT Infrastructure Limited.
• The project implementation was taken up by a consortium led by Central PSU Bharat Electronics Limited. PriceWaterhouseCoopers is the consultant of the project.
• While KSITIL would be responsible for the operations and maintenance of the project, the infrastructure asset shall be owned by KSEBL.
• BEL is the system integrator for the KFON project. BEL has taken the tasks of rolling Optical fibre cable network, setting up network point of presence locations and providing connectivity to government institutions.
• BEL would be in charge of operation and maintenance of the project for seven years. The project is fully funded by Kerala Infrastructure Investment Fund Board (KIIFB), the state government agency for funding infrastructure projects.

What services will it provide?

• The aim of the KFON is to create a core network infrastructure (information highway) with non-discriminatory access to all service providers, and to ensure a reliable, secure and scalable intranet connecting all government of offices and educational institutions.
• Its major services are connectivity to government offices, leasing of dark fibre, internet leased line, fibre to the home, wifi hotspots, colocation of assets under network operating centres and Point-of-Presences, internet protocol television, OTT, and cloud hosting.
• The Union Department of Telecommunications had provided Infrastructure Provider (category one) licence as well as the Internet Service Provider licence (category B) to the KFON.
• The IP licence allowed the KFON to obtain fibre optic lines (dark fibre), towers, duct space, network and other related infrastructure facilities for establishing an optic fibre network.

1. THE ORGANIZATION OF THE PETROLEUM EXPORTING PLUS COUNTRIES

TAG: GS 2: INTERNATIONAL RELATIONS

THE CONTEXT: The Organization of the Petroleum Exporting Countries and allies including Russia, a group known as OPEC+ which pumps around 40% of the world’s crude, agreed on a new oil output deal.

EXPLANATION:

• Saudi Arabia, the group’s biggest producer, will make a deep cut to its output in July on top of a broader OPEC+ deal to limit supply into 2024 as the group faces flagging oil prices.
• A surprise announcement by OPEC+ in April to deepen production cuts helped to raise prices by about $9 a barrel to above $87 per barrel in the days followed.
• The changes, however, included lowered targets for Russia, Nigeria and Angola simply to bring them into line with current production levels.

Reasons why OPEC+ cut output:

• Concerns about weak global demand as data from China has aroused fears that the economic recovery after coronavirus lockdowns by world’s second-largest oil consumer is losing steam.
• Fears of another banking crisis in recent months have led investors to sell out of riskier assets.
• A global recession could lead to lower oil prices.
• Punishing speculators as the planned cuts will also punish oil short sellers betting on oil price declines.

Reactions:

• The United States is considering passing legislation known as NOPEC, which would allow the seizure of OPEC’s assets on U.S. territory if market collusion is proven.
• OPEC+ has criticised the International Energy Agency, the West’s energy watchdog for which the United States is the biggest financial donor, for advocating oil stocks releases last year.

Organization of the Petroleum Exporting Countries (OPEC)

• It refers to a group of 13 of the world’s major oil-exporting nations.
• OPEC was founded in 1960 to coordinate the petroleum policies of its members and to provide member states with technical and economic aid.
• Members Countries of OPEC include Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela (the five founders), plus Algeria, Angola, Congo, Equatorial Guinea, Gabon, Libya, Nigeria, and the United Arab Emirates.

Organization of the Petroleum Exporting Countries (OPEC) Plus:

• Opec+ is a group of 23 oil-exporting countries which meets regularly to decide how much crude oil to sell on the world market.
• These nations came to an accord towards the end of 2016 “to institutionalize a framework for cooperation between OPEC and non-OPEC producing countries on a regular and sustainable basis.” These nations aim to work together on adjusting crude oil production to bring stability to the oil market.
• The list of non-OPEC nations includes Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Russia, Mexico, Malaysia, South Sudan, Sudan and Oman.

2. PLASTIC POLLUTION AND WORLD ENVIRONMENT DAY

TAG: GS 3: ENVIRONMENT

THE CONTEXT: Since the early 20th century, plastics have become a ubiquitous part of human life, despite their many adverse impacts on the environment. This year’s World Environment Day (June 5) has the theme of #BeatPlasticPollution, calling for global solutions to combat the pandemic of plastic pollution.

EXPLANATION:

50th anniversary of the World Environment Day:

• The World Environment Day, led by the United Nations Environment Programme (UNEP), has been held annually on June 5, since 1973.
• The date was chosen by the UN General Assembly during the historic 1972 Stockholm Conference on the Human Environment considered to be the first world conference to make the environment a major issue.

#BeatPlasticPollution

• Hosted by Côte d’Ivoire and supported by the Netherlands, this year’s World Environment Day campaign is aimed towards discussing and implementing solutions to the problem of plastic pollution.
• According to UN data, more than 400 million tonnes of plastic is produced every year worldwide, half of which is designed to be used only once. Of that, less than 10 per cent is recycled. Consequently, an estimated 19-23 million tonnes end up in lakes, rivers and seas annually.

What is Plastic?

• The word plastic is derived from the Greek word plastikos, meaning “capable of being shaped or moulded.”
• It refers to a wide range of synthetic or semi-synthetic materials that use polymers as a main ingredient with their defining quality being their plasticity the ability of a solid material to undergo permanent deformation in response to applied forces. This makes them extremely adaptable, capable of being shaped as per requirement.
• Broadly speaking, single-use is a term which can refer to any plastic items which are either designed to be used for one time by the consumer before they are thrown away or recycled, or likely to be used in this way
• Most modern plastics are derived from fossil fuel-based chemicals like natural gas or petroleum. However, recently, variants made from renewable materials, such as corn or cotton derivatives have also emerged.
• Around 70 per cent of global plastic production is concentrated in six major polymer types – referred collectively as commodity plastics. These include: Polyethylene terephthalate or PET, High-density polyethylene or HDPE, Polyvinyl chloride or PVC, Low-density polyethylene or LDPE, Polypropylene or PP, and Polystyrene or PS. Each of these have different properties and can be identified by their Resin Identification Code (RIC) denoted by symbols found on plastic products.
• Resin identification coding system

Microplastics:

• Plastic doesnot decompose but do crumble into smaller particles called as microplastics.
• It is officially defined as plastics less than five millimetres in diameter.
• There are two categories of microplastics. Primary microplastics are tiny particles designed for commercial use, such as in cosmetics or textiles. On the other hand, secondary microplastics are particles that are a product of the breakdown of larger plastic items due to exposure to environmental factors such as sun’s radiation or ocean’s waves.
• The problem with microplastics, like all plastics, is that they do not break down easily into more harmless particles. Instead, they find their way across the planet, from the depths of the Pacific Ocean to the heights of the Himalayas.
• According to the most recent global estimates, an average human consumes at least 50,000 microplastic particles annually due to contamination of the food chain, potable water, and air.
• Notably, microplastics contain a number of toxic chemicals which pose severe risks to human health. The biggest health risk associated is with the chemical BPA or Bisphenol A , which is used to harden the plastic.
• BPA contaminates food and drinks, causing alterations in liver function, insulin resistance, foetal development in pregnant women, the reproductive system and brain function.

Great Pacific Garbage Patch:

• The largest collection of plastics and microplastics in the ocean is in the Great Pacific Garbage Patch – a collection of marine debris in the North Pacific Ocean. Also known as the trash vortex, it is located between California and Japan, and formed due to converging ocean currents.
• As per estimates, the GPGP covers a surface area of 1.6 million sq km– roughly half the size of India There are other, smaller such garbage patches in other oceans.
• The GPGP comprises majorly of single-use plastics.

3. GENOME SEQUENCING AND BLACK DEATH

TAG: GS 3: SCIENCE AND TECHNOLOGY

THE CONTEXT: The ‘Black Death’ causing bacteria’s prehistoric trail has been traced by scientists by advanced gene-sequencing techniques.

EXPLANATION:

What is the black death?

• The ‘black death’, or the Great Plague was one of the deadliest epidemics in human history that happened in 14th century.
• The ‘black death’ is believed to have killed more than 25 million people in Europe and possibly up to 40-50% of the population in some of the continent’s major cities
• It was caused by a bacterium called Yersinia pestis, which infects mammals. This bacteria’s discovery has been attributed separately to Alexandre Yersin, a Swiss-French physician, and Kitasato Shibasaburō, a Japanese physician and microbiologist during the plague outbreak in Hong Kong in 1894.
• Humans typically get infected through fleas or through close handling/contact with an infected human or animal.
• One possible reason for the humongous proportions of the ‘black death’ outbreak is the human-to-human transmission of the bacteria.

Plague outbreak in India:

• India has experienced plague epidemics of varying intensities from as early as 1896 in Bombay to outbreaks in Karnataka (1966) and Surat (1994) and to a more recent isolated outbreak (2004) in a village in Uttarakhand.
• India also prominently figures in the history of the plague. The plague vaccine was developed by Waldemar Haffkine in 1897 during the outbreaks in Bombay.

History of plague:

• Historical archives suggest the Plague of Justinian in the sixth century A.D. was possibly the first to be documented.
• The evidence also suggests that plague outbreaks were possibly common in Asia and Europe as early as the Late Neolithic-Early Bronze Age (LBNA), as implied by genetic material isolated from a Swedish tomb dated to 3000 BC.
• The LBNA period is estimated to have lasted 5,000-2,500 years before present. This era was also characterised by human contact, exchange across Europe, and a consequent social, economic, and cultural transformation of human society.

Genome-sequencing technologies:

• The advent of genome-sequencing technologies has allowed scientists to trace the trail of infectious diseases that ailed people in prehistoric times.
• This is possible in particular due to deep-sequencing of genetic material isolated from well-preserved human remains, with the help of advanced computational analysis.
• Deep-sequencing involves sequencing the genomic material multiple times to retrieve even small amounts of DNA, since the material is likely to degrade over time.

What has deep-sequencing revealed?

• Scientists have also traced the prehistoric trail providing an unparalleled view of the evolution and adaptation of human pathogens.
• They found that the reconstructed genomes lacked the gene to create a molecule called yapC, short for ‘yersinia autotransporter C’, associated with the bacteria’s ability to bind to mammalian cells and form biofilms and thus important for causing infections.
• However, they also found the presence of a functional urease D gene, which could make them toxic to fleas.
• The genome sequences from the latter also lacked the yapC and ymt genes, reinforcing the previous findings that the plague in that period was possibly not transmitted through fleas.
• The ambit of such technologies is also expanding to include studies of animal and plant diseases, along with human diseases, contributing to the unified understanding of our well-being called ‘One Health.

4. GDP ESTIMATES

TAG: GS 3: ECONOMY

THE CONTEXT: Recently, government released the so-called Provisional Estimates (PE) of India’s national income for the financial year 2022-23 (or FY23). According to the PEs, the size of India’s economy calculated by the Gross Domestic Product (GDP) or the market value of all final goods and services produced within the country grew by 7.2 per cent in FY23. This means, India’s GDP was 7.2% more than what it was in the previous financial year (2021-22).

EXPLANATION:

About GDP growth estimates:

• For any financial year, the GDP estimates go through several rounds of revisions.
• Each year in January, the Ministry of Statistics and Programme Implementation (MoSPI) releases the First Advance Estimates (FAEs) for that financial year.
• In February end, after incorporating the data from Q3 (third quarter, which includes October, November and December), come the Second Advance Estimates (SAEs).
• By May-end come the Provisional Estimates (PEs) after incorporating the Q4 (Jan to March) data.
• Then with each passing year, the PEs are revised to give the First Revised Estimates, the Second Revised Estimates and the Third Revised Estimates before settling on the “Actuals”. Each revision benefits from more data, making the GDP estimates more accurate and robust.

Private Final Consumption Expenditure (PFCE):

• However, there is a fly in the (GDP data) ointment. It is called the Private Final Consumption Expenditure (PFCE).
• As is evident, the PFCE is the biggest engine of growth. Typically, if it is growing robustly then one would presume that the second biggest engine of GDP growth — expenditures towards investments — will follow suit. For a big economy such as India, together, these two components can create a virtuous cycle.

Typically, GDP is calculated by adding up all expenditures in the economy. These expenditures are broadly categorised in four groups:

1. All the money Indians spend in their personal capacity from buying an ice cream to watching a movie to buying a TV or car. This is called the PFCE. Such expenditures account for 55%-60% of India’s annual GDP.
2. All the money the governments spend on their daily uses paying salaries etc. This is called Government Final Consumption Expenditure (GFCE) and this accounts for 10% of India’s GDP.
3. All the money spent by private companies and governments towards building productive capacities in the economy. Say a firm buying desktops for its employees or the government spending money on building a road. This is called the Gross Fixed Capital Formation (GFCF) and this accounts for 30%-32% of the GDP.
4. Net exports or the net of all the money that Indians received by exporting goods and services and minus all the money they spent on importing goods and services. More often than not, India’s imports are more than its exports. As such the Net Exports component is negative and drags down overall GDP.

5. INTERLOCKING SYSTEM

TAG: PRELIMS PERSPECTIVE

THE CONTEXT: Minister for Railways said that a change in the “configuration” of the track had led to the Coromandel Express smashing into the stationary goods train from behind, triggering the three-way train accident in Odisha in which 275 people have died so far.

EXPLANATION:

• The electric “point machine” is a vital device for railway signalling for quick operation and “locking” of point switches. It plays the key role in the safe running of trains.
• Failure of these machines will severely affect train movement, and any deficiencies created or left unaddressed at the time of installation of the system can result in unsafe conditions.

How the system works:

• Interlocking in railway signalling systems is a crucial safety mechanism used in the operation of train movements on railway tracks.
• It ensures that train movements continue without any conflicts with each other, preventing accidents.
• There are three main components that comprise an interlocking system: the point, the track occupancy sensing devices, and the signal. The Interlocking system coordinates the functions of these three components to control train movements.

What is the function of each of these three main components?

• Points allow trains to change tracks: The points (also called ‘switch rails’) are movable rails that guide the wheels of a train towards either a straight or a diverging track. They are typically placed at the point of divergence of two tracks going to different directions. Once a direction of a train is determined, the point gets locked at a particular position. This means that once a direction is set, the point cannot budge until the train has passed.
• Track circuits are electrical circuits (also known as track-occupancy sensing devices) that detect the presence of trains.
• Signals (which are lights of green, red, and yellow colour) are installed along the tracks to indicate the status of the track ahead.

And how do the points work?

• The digital interface of this system is a computer screen (or multiple screens) that shows the full view of the station layout and the live (real-time) movement of trains on tracks, the signals, and the position of the points.
• This is the configuration that runs all trains everywhere. This computer interface is called a data logger.

How does the system sense whether a track is occupied?

• There are various kinds of track-occupancy sensing devices. Generally, sensors are installed on the tracks that detect the passage of wheels on the rails.
• These are also called axle counters. They count how many sets of wheels or axles have passed over them in order to determine whether the entire train has passed through.

Who operates and monitors the interlocking signalling system?

• The interlocking system is usually operated and monitored by trained personnel from the signalling and telecommunications department in Railways, often known as ‘signallers’ or signal operators. They are responsible for setting the signals, monitoring track circuits, and ensuring the safe movement of trains.

1. KAVACH: AUTOMATIC TRAIN PROTECTION (ATP) SYSTEM

TAG: PRELIMS PERSPECTIVE

CONTEXT: The death of over 288 passengers in the ghastly train accident on June 2 at Bahanaga Bazaar railway station in the Balasore district of Odisha has brought into sharp focus the safety mechanisms needed to prevent such tragedies.

EXPLANATION:

What is Kavach?

• Kavach is an indigenously developed Automatic Train Protection (ATP) system by the Research Design and Standards Organisation (RDSO) under Indian Railway (IR) in collaboration with Medha Servo Drives Pvt Ltd, HBL Power Systems Ltd and Kernex Microsystems.
• The railways has been developing its own automatic protection system since 2012 as Train Collision Avoidance System (TCAS), which got rechristened Kavach or ‘armour’.
• The trials were facilitated by the South Central Railway to achieve safety in train operations across Indian Railways.
• It is a state-of-the-art electronic system with Safety Integrity Level-4 (SIL-4) standards. It is meant to provide protection by preventing trains to pass the signal at Red (which marks danger) and avoid collision.
• ‘Kavach’ is one of the cheapest, SIL-4 certified technologies where the probability of error is 1 in 10,000 years.

Features of Kavach system:

• Kavach works on the principle of continuous update of Movement authority.
• It actively uses the SOS to prevent any kind of mishap and accidents.
• As part of the new system, railway tracks, signalling systems on railway tracks and the engines of trains are installed with radio frequency devices that continuously send signals back and forth on a real-time basis to indicate that the track on which the train is operating has no obstacles.
• The devices also continuously relay the signals ahead to the locomotive, making it useful for loco pilots in low visibility. Kavach also controls the speed of the train by an automatic application of brakes in case the loco pilot fails to do so. It helps the loco pilot in running the train during inclement weather conditions such as dense fog.
• Further operational improvement of Kavach is in the works, including change over from Ultra High Frequency (UHF) communication to LTE-4G communication.
• At the moment, Kavach uses ultra-high frequency radio waves but the Indian Railways is working to make it compatible with 4G Long Term Evolution (LTE) technology and develop the product for global markets.
• Kavach uses a network of devices mounted on trains to avoid collisions. The devices use radio technology and GPS to precisely assess the location of two trains and automatically initiate the braking system if they are at risk of colliding.

How it works?

• This Traffic collision avoidance system (TCAS), with the help of equipment on board the locomotive and transmission towers at stations connected with Radio Frequency Identification (RFID) tags, helps in two-way communication between the station master and loco-pilot to convey any emergency message.
• The instrument panel inside the cabin helps the loco-pilot know about the signal in advance without visual sighting, and the permissible speeds to be maintained.
• If a red signal is jumped and two trains come face to face on the same line, the technology automatically takes over and applies sudden brakes.
• Additionally, the hooter activates by itself when approaching a level crossing which serves as a big boon to loco-pilots during fog conditions when visibility is low.
• It activates the train’s braking system automatically if the driver fails to control the train as per speed restrictions.
• In addition, it prevents the collision between two locomotives equipped with functional Kavach systems.
• The system also relays SoS messages during emergency situations.
• An added feature is the centralised live monitoring of train movements through the Network Monitor System.

Where has Kavach been implemented?

• The trial of the Kavach working system implemented between Gullaguda-Chitgidda Railway stations on Lingampalli-Vikarabad section in the Secunderabad Division of South Central Railway.
• The South Central Railway (SCR) Zone is a pioneer in the implementation of the KAVACH – (TACS). The Kavach system has been deployed over 1,465 kms in the SCR limits in 77 locomotives and 135 stations till March this year.
• Additionally, the Secunderabad-based Indian Railways Institute of Signal Engineering & Telecommunications (IRISET) hosts the ‘Centre of Excellence’ for Kavach. IRISET has been mandated by the Railway Board to train the inservice railway staff on Kavach.

Earlier system:

• The Indian Railways has since 2002 been using an anti-collision device (ACD) developed by Konkan Railways, which was dubbed ‘Raksha Kavach’.
• The ACD system was invented by the former head of Konkan Railways Rajaram Bojji.
• While the older system is still in use in most trains operated by Indian Railways at the moment, the new system will be introduced across all trains in the next five years.
• The new Kavach system covers everything from railway stations, signalling systems and even types of trains, while the older ACD or the auxiliary warning system only works on individual trains and locomotives.
• The new system is also a lot more accurate in sending signals to trains and is faster as it works on a real-time basis while implementing safety measures as well.

2. ADVERSE POSSESSION

TAG: GS 2: POLITY

CONTEXT: 22nd Law Commission has said in its 280th report that there is no justification for introducing any change in the law relating to adverse possession. The Law Commission, headed by former Chief Justice of Karnataka High Court Ritu Raj Awasthi and comprising retired Kerala High Court judge KT Sankaran, said in its 280th report that there is no reason for increasing the period of limitation. However, two of its ex officio members filed a dissent note stating that the law does not stand judicial scrutiny and “promotes false claims under the colour of adverse possession”.

EXPLANATION:

What is adverse possession?

• The concept of adverse possession stems from the idea that land must not be left vacant but instead, be put to judicious use.
• Essentially, adverse possession refers to the hostile possession of property, which must be “continuous, uninterrupted, and peaceful.”
• According to the Law Commission’s report, the rationale behind this comes from considerations that the “title to land should not long be in doubt”, “society will benefit from someone making use of land the owner leaves idle,” and “persons who come to regard the occupant as owner may be protected.”
• The maxim that the law does not help those who sleep over their rights is invoked in support of adverse possession. Simply put, “the original title holder who neglected to enforce his rights over the land cannot be permitted to re-enter the land after a long passage of time.
• While the concept originally dates back to 2000 BC, finding its roots in the Hammurabi Code, the historical basis of “title by adverse possession” is the development of the statutes of limitation on actions for recovery of land in England.
• The first such statute was the Statute of Westminster, 1275. However, it was the Property Limitation Act, 1874, that set the period of limitation at twelve years from when the cause of action first arose, which laid the groundwork for the limitations model inherited by colonial India.
• The first attempt to bring the law of limitation to domestic shores was the “Act XIV of 1859”, which regulated the limitation of civil suits in British India. After the passage of the Limitation Act in 1963, the law on adverse possession underwent significant changes.

What provisions did the Limitation Act, 1963 bring with it?

• The 1963 Act fortified the position of the true owner of the land, as he now had to merely prove his title, while the burden of proof of adverse possession shifted to the person claiming it.
• Under the Limitation Act, 1963, any person in possession of private land for over 12 years or government land for over 30 years can become the owner of that property, as laid down in Articles 64, 65, 111, or 112 of the 1963 Act, relating to suits for possession of immovable property.
• According to Article 65 of Schedule I of the 1963 Act, a person in adverse possession of immovable property acquires title to that property.
• However, the possession must be open, continuous, and “in defiance of the title of the real owner for twelve years.”
• Similarly, Article 64 governs suits for possession based on previous possession and not on title.
• Meanwhile, Article 112, which applies to government property, mandates a requirement of 30 years for granting a title by adverse position.
• Further, Article 111 says that the limitation period for the State will be 30 years from the date of dispossession for land belonging to a private person where any public street or road or any part of it has been dispossessed and no suit has been moved for its possession “by or on behalf of any local authority”.

Why did the SC suggest changes to the law on adverse possession?

• A two-judge SC bench, in its 2008 ruling in Hemaji Waghaji Jat v. Bhikhabhai Khengarbhai Harijan and Others, while dealing with Article 65 of the Schedule of the Limitation Act, 1963, observed that the law of adverse possession “ousts an owner on the basis of inaction within limitation” and is “irrational, illogical, and wholly disproportionate”.
• “The law as it exists is extremely harsh for the true owner and a windfall for a dishonest person who has illegally taken possession of the property,” the court said. Adding that the law should not benefit the illegal action of a “rank trespasser” who had wrongfully taken possession of the true owner’s property, the court said that it also “places a premium on dishonesty”.
• Emphasising the “urgent need” for “a fresh look regarding the law on adverse possession”, the court recommended the government “to seriously consider and make suitable changes in the law of adverse possession”.
• Consequently, the 19th Law Commission prepared a “consultation paper-cum-questionnaire”. After receiving responses, the Commission concluded that the present provisions afforded sufficient protection to the land’s true owner and there was no need to amend the law. However, the Commission failed to file a final report on the subject.
• Owing to the importance of the subject, coupled with the fact that the reference had been pending since 2008, the present Law Commission found it “expedient to deliberate afresh over the subject.”
• While the Commission’s opinion was that the law on adverse possession should stay the same, two of its ex officio members, filed a dissent note saying that the law promotes false claims.

3. LARGE LANGUAGE MODELS (LLMS)

TAG: GS 3: SCIENCE AND TECHNOLOGY

CONTEXT: With more people getting on the generative AI bandwagon for work and play, context and cross-verification are the tools we need to guard against misinformation. In this regard, there is need to take a look on large language models and associated terminologies.

EXPLANATION:

• Large Language Models (LLMs) are foundational machine learning models that use deep learning algorithms to process and understand natural language.
• These models are trained on massive amounts of text data to learn patterns and entity relationships in the language.
• LLMs can perform many types of language tasks, such as translating languages, analyzing sentiments, chatbot conversations, and more.
• They can understand complex textual data, identify entities and relationships between them, and generate new text that is coherent and grammatically accurate.
• A large-scale transformer model known as a “large language model” is typically too massive to run on a single computer and is, therefore, provided as a service over an API or web interface.

General Architecture

• The architecture of Large Language Models primarily consists of multiple layers of neural networks, like recurrent layers, feedforward layers, embedding layers, and attention layers. These layers work together to process the input text and generate output predictions.
• The embedding layer converts each word in the input text into a high-dimensional vector representation. These embeddings capture semantic and syntactic information about the words and help the model to understand the context.
• The feedforward layers of Large Language Models have multiple fully connected layers that apply nonlinear transformations to the input embeddings. These layers help the model learn higher-level abstractions from the input text.
• The recurrent layers of LLMs are designed to interpret information from the input text in sequence. These layers maintain a hidden state that is updated at each time step, allowing the model to capture the dependencies between words in a sentence.
• The attention mechanism is another important part of LLMs, which allowsthe model to focus selectively on different parts of the input text. This mechanism helps the model attend to the input text’s most relevant parts and generate more accurate predictions.

Few examples of large language models:

1. GPT-3 (Generative Pre-trained Transformer 3) – This is one of the largest Large Language Models developed by OpenAI. It has 175 billion parameters and can perform many tasks, including text generation, translation, and summarization.
2. BERT (Bidirectional Encoder Representations from Transformers) – Developed by Google, BERT is another popular LLM that has been trained on a massive corpus of text data. It can understand the context of a sentence and generate meaningful responses to questions.
3. XLNet – This LLM developed by Carnegie Mellon University and Google uses a novel approach to language modeling called “permutation language modeling.” It has achieved state-of-the-art performance on language tasks, including language generation and question answering.
4. T5 (Text-to-Text Transfer Transformer) – T5, developed by Google, is trained on a variety of language tasks and can perform text-to-text transformations, like translating text to another language, creating a summary, and question answering.

5. RoBERTa (Robustly Optimized BERT Pretraining Approach) – Developed by Facebook AI Research, RoBERTa is an improved BERT version that performs better on several language tasks.

Few terminologies that take on new meaning with artificial intelligence

• Chatbot: A program that runs within websites and apps, and interacts directly with users to help them with tasks.
• Hallucination: When generative AI or a chatbot gives an answer that is factually incorrect or irrelevant because of limitations in its training data and architecture.
• Deep learning: A function of artificial intelligence that imitates the human brain by learning from the way data is structured, rather than from an algorithm that’s programmed to do one specific thing.
• Neural network: A method in artificial intelligence that teaches computers to process data in a way inspired by the human brain.
• Bias: A type of error that can occur in a large language model if its output is skewed by the model’s training data.
• Jailbreak: This is a way of breaching the ethical safeguards of a device. Every AI has content moderation guidelines to ensure it doesn’t commit crimes, or display graphic content. With the help of specific prompts, these guidelines can be bypassed.
• DAN (Do Anything Now): DAN is a prompt wherein ChatGPT is freed from the typical confines of AI. The bot can pretend to browse the Internet, access current information (even if made up), use swear words, display information that is unverified; basically, do everything that the original ChatGPT cannot.
• Abduction: A form of reasoning where baseless assumptions are made to explain observations, in contrast to deductive reasoning, where conclusions are based on perceivable facts and configurations.
• Prompt injection: This involves inserting malicious prompts that override an AI’s original instructions, to get it to manipulate and deceive users. As a result, hijackers can force an AI model to perform actions out of its purview. This is similar to a jailbreak, but more malicious.

4. CREDIT INFORMATION COMPANY AND CIBIL SCORE

TAG: GS 3: ECONOMY

CONTEXT: Kerala High Court said last week that a student’s credit score cannot be a factor in rejecting an education loan application. Calling students the “nation builders of tomorrow”, a Bench of Justice PV Kunhikrishnan added that the student’s education loan application should not have been rejected simply because he had a low CIBIL or credit score.

EXPLANATION:

What is the Issue?

• In a major move to ensure smooth process for the disbursement of loan from the financial Institutions, the The Kerala High Court ruled that application for education loan from the students should not be rejected by the banks simply because the CIBIL score of a student was low.
• The petitioner, who is a student, had availed two loans, of which one was overdue for and the other loan was written off by the Bank. The CIBIL score of the petitioner was low due to these reasons.
• The counsels placed reliance upon the decision and held that the unsatisfactory credit score of the parents of a student could not be a ground for rejecting an educational loan, since the repayment capacity of the student after his education ought to be the deciding factor as per the scheme.
• The counsels in this case averred that the petitioner had received a job offer from a Multi National Company and would thus be able to clear the entire loan amount. On the other hand, the counsels for the respondents argued that granting an interim order in this case, in accordance with the reliefs sought for by the petitioner, would be against the scheme framed by the Indian Banks Association as directed by the Reserve Bank of India.
• It was further submitted that the Credit Information Companies Act, 2005, the Credit Information Companies Rules, 2006 and the Circulars issued by the State Bank of India prohibits disbursement of loan in situations as that of the present petitioner.

What did the RBI circular say?

• On April 28, 2001, the RBI issued a circular in which it mentioned a comprehensive “model educational loan scheme” prepared by the Indian Banks Association (IBA) “for adoption by all banks”.
• The scheme aimed to provide financial support from the banking system to deserving or meritorious students pursuing higher education in India and abroad. Additionally, it was announced in the Union Budget for 2001–2002. While this scheme provided broad guidelines for banks to operationalise education loans, its implementation by banks varied.
• Following this, on June 24, 2019, the RBI advised all scheduled commercial banks to adopt the educational loan scheme formulated by IBA in 2001.

What is CIBIL score?

• A Credit Information Bureau (India) Limited (CIBIL) score is a three-digit numerical summary of one’s credit history, which involves an individual’s credit payment history across loan types and credit institutions over a period of time.

Credit Information Companies:

• A Credit Information Company (CIC) is an organization which collects and analyses credit and loan related data about individuals and companies and generates its products and services on the basis of this data.
• This data is provided to CICs by their member banks and other financial institutions. Credit Information Companies are also known as Credit Bureaus in India.
• A Credit Information Company needs to be a company that was formed and registered under the Companies Act, 1956 and is granted a Certificate of registration under sub-section (2) of Section 5, of CIC Act, 2005.
• They were licensed to work in the country under the Credit Information Companies (Regulation) Act, 2005 by the Reserve Bank of India (RBI).
• RBI reserves the right to determine the number of Credit Information Companies that can be granted with the Certificates of Registration to carry out the business of Credit Information, by taking into consideration various factors like the available business of Credit Information, the scope of expansion of existing CICs etc.
• Furthermore, RBI has the right to cancel the Certificate of Registration of any CIC as per the conditions laid out in Section 6, of CIC Act 2005.
• Currently there are 4 authorized Credit Information Companies in India.

1. Credit Information Bureau (India) Limited – CIBIL
2. Equifax Credit Information Services Private Limited
3. Experian Credit Information Company of India Private Limited
4. CRIF High Mark Credit Information Services Private Limited

As per Section 2 of CIC Act , ‘Credit Information’ refers to any information relating to

• Amounts and nature of the loans or advances, amounts outstanding under credit cards and other credit facilities granted (or to be granted) by a Credit institution i.e. banks or financial institutions to any borrower.
• The type and nature of the security taken (or proposed to be taken) by the credit institutions from the borrower in relation to the credit facilities being provided.
• The guarantee furnished by a credit institution to its borrowers.
• The creditworthiness of any borrower
• Any other information which the RBI may consider it to be necessary to be included in the Credit Information.

5. BIMA VAHAK

TAG: SCHEMES IN NEWS

CONTEXT: IRDAI’s plan to improve insurance awareness and penetration in the hinterland is all set to gain momentum with the insurance regulator issuing draft guidelines for Bima Vahak, a dedicated distribution channel to reach out to every Gram Panchayat. Insurance Regulatory and Development Authority of India (IRDAI) issued draft guidelines for Bima Vahaks.

EXPLANATION:

Bima Vahak Scheme:

• It is a core component of IRDAI ‘Insurance for all by 2047’ goal.
• It will be the crucial last-mile connect for insurers in the form of a field force comprising corporate as well individual regardless of their geographical locations.
• From the collection of proposal information, KYC documents and submissions to coordination and support in policy and claims-related servicing, the scope of activities of Bima Vahak will be wide and aimed at improving accessibility and availability of insurance in every nook and corner of the country.
• However, the insurer will remain responsible for ensuring KYC and AML compliance with respect to the policies sourced through the Bima Vahaks.

Draft guidelines:

• The primary objectives of the Bima Vahak guidelines are to establish a dedicated distribution channel focused on enhancing insurance inclusion and creating awareness in every Gram Panchayat (village council).
• A Bima Vahak will be permitted to sell and service the Bima Vistaar product approved by the Authority and work with only one life insurer, one general insurer and one health insurer and, where permitted, with the Agriculture Insurance Company of India Ltd.
• The Bima Vahak scheme will be closely aligned with the Lead Insurers that IRDAI had mooted in every State and Union Territory. Such Lead Insurers will coordinate deployment of resources to ensure maximum coverage of Gram Panchayats.
• With the Bima Vahaks engaging with the diverse needs and aspirations in every Gram Panchayat, insurers can adapt their offerings to provide comprehensive coverage and address emerging financial protection needs.
• The guidelines emphasize the identification and development of local resources within each Gram Panchayat, with a special focus on encouraging the onboarding of women as Bima Vahaks to gain the trust of the locals.
• The guidelines define two types of Bima Vahaks: Corporate Bima Vahaks and Individual Bima Vahaks. Corporate Bima Vahaks refer to legal entities registered under Indian laws and engaged by insurers. On the other hand, Individual Bima Vahaks can be either appointed by an insurer or appointed by a Corporate Bima Vahak.
• The guidelines outline several key requirements and policies that insurers must adhere to.
• These include norms for the appointment and engagement of Bima Vahaks, territorial allocation, educational qualifications and training standards, code of conduct, operational workflows and standards, use of electronic handheld devices, setting up of retail outlets, deployment of technology, the confidentiality of policyholder data, payment of a commission, operational and compliance requirements, and database management of policies solicited through Bima Vahaks.

Insurance Regulatory and Development Authority of India (IRDAI):

• It is a statutory body formed under an Act of Parliament, i.e., Insurance Regulatory and Development Authority Act, 1999 (IRDAI Act 1999) for overall supervision and development of the Insurance sector in India.
• The powers and functions of the Authority are laid down in the IRDAI Act, 1999 and Insurance Act, 1938.
• Its head office is located in Hyderabad and Regional offices at New Delhi and Mumbai. The Regional Office, New Delhi focuses on spreading consumer awareness and handling of Insurance grievances besides providing required support for inspection of Insurance companies and other regulated entities located in the Northern Region. This office is functionally responsible for licensing of Surveyors and Loss Assessors. Regional Office at Mumbai handles similar activities, as in Regional Office Delhi, pertaining to Western Region.
• The key objectives of the IRDAI include promotion of competition so as to enhance customer satisfaction through increased consumer choice and fair premiums, while ensuring the financial security of the Insurance market.
• The Insurance Act, 1938 is the principal Act governing the Insurance sector in India.
• It provides the powers to IRDAI to frame regulations which lay down the regulatory framework for supervision of the entities operating in the sector.
• Further, there are certain other Acts which govern specific lines of Insurance business and functions such as Marine Insurance Act, 1963 and Public Liability Insurance Act, 1991.
• Composition of IRDAI:

As per Sec. 4 of IRDAI Act, 1999, the composition of the Authority is:

1. a) Chairman;
2. b) Five whole-time members;
3. c) Four part-time members,

(appointed by the Government of India)

‘Insurance for all by 2047’:

• IRDAI is working on three-pronged approach — availability, accessibility and affordability — to ensure ‘Insurance for All by 2047’.
• India will attain 100 years of independence by 2047 and Insurance Regulatory and Development Authority of India (IRDAI) has taken several steps in the last 10-12 months to enhance penetration and density of life cover plan.
• A conceptual framework has been contemplated that this is being proposed through the Bhima trinity – Bhima Sugam, Bhima Vistar, and the woman-centric Bhima Vahak.
• IRDAI is moving from a rule-based approach to a principal-based approach, that the opportunity to invest in the insurance sector is immense given the size of the market, and low insurance penetration.
• To enhance penetration, attempts being made to reach the last mile through state level insurance plans in line with State-Level Bankers’ Committee (SLBC) on the banking side.
• There will be enhanced role of Insurance Information Bureau of India (IIB) in supporting data and tech-driven insurance solutions.
• Additionally, the need for risk based capital and solvency, convergence to Ind-AS, rationalizing expenses of management, developing talent pool, updating investment norms and sustainable growth of industry were also deliberated.
• It was also proposed to revamp the role and functioning of the life insurance and general insurance councils, to make them more vibrant bodies.

1. CONFLICT BETWEEN IRAN AND AFGHANISTAN OVER RIVER HELMAND

TAG: PLACES IN NEWS; GS 2: INTERNATIONAL RELATIONS

CONTEXT: Iran and Afghanistan are locked in a long-standing dispute over the sharing of water from the Helmand River. Clashes broke out recently along the border.

EXPLANATION:

Current Issue:

• Iran and the Taliban exchanged heavy gunfire on the Islamic Republic’s border with Afghanistan, killing and wounding troops while sharply intensifying rising tensions between the countries.
• The clash came amid an escalating dispute between Kabul and Tehran over the Helmand River, which is a vital source of water for both sides, supporting agriculture, livelihoods and ecosystems in the region.

Helmand river:

• The Helmand is Afghanistan’s longest river. It originates near Kabul in the western Hindu Kush mountain range and flows in a southwesterly direction through desert areas for a total of about 1,150 kilometers (715 miles) before emptying into Lake Hamun, which straddles the Afghanistan-Iran border.
• Lake Hamun is the largest freshwater lake in Iran and It used to be one of the world’s largest wetlands, straddling 4,000 square kilometers (1,600 square miles) between Iran and Afghanistan, fed by the Helmand. But it has since dried up, a trend experts blame on drought and the impact of dams and water controls.

Background:

• Afghanistan and Iran signed an agreement the Helmand River Treaty in 1973 to regulate the allocation of river water. But the accord was neither ratified nor fully implemented, causing disagreements and tensions to persist.
• Iran has accused Afghanistan of violating its water rights for years, arguing that far less water than the amount agreed to in the 1973 treaty flows into Iran.
• Afghanistan has rejected Iran’s accusations, underlining that climatic factors like a shortage of rainfall, resulting in reduced river water volumes, are to blame for the situation.
• A major source of concern for Iran is Afghanistan’s construction of dams, reservoirs and irrigation systems along the Helmand River. Tehran fears that these projects reduce water flow into Iran
• But Kabul argues that it is within its rights to expand water storage and irrigation capacities within Afghanistan.

What’s the state of Tehran-Taliban ties?

• Iran and Afghanistan share a 950-kilometer land border. Both countries have no major territorial disputes
• Tehran had cultivated good ties with the Taliban before the Islamic fundamentalist group captured Kabul in August 2021 as US and NATO troops were in the final weeks of their pullout from Afghanistan.
• Both sides were united in their opposition to the US’s presence in the region

2. VIOLENCE IN KOSOVO

TAG: PLACES IN NEWS;  GS 2: INTERNATIONAL RELATIONS

CONTEXT: After winning a match against Hungary’s Márton Fucsovics at the ongoing French Open tennis championship, Serbian great Novak Djokovic wrote on a camera lens in Serbian: “Kosovo is the heart of Serbia. Stop the violence.” Djokovic, was referring to this week’s violence in the Kosovan town of Zvecan where Serbian protesters clashed with NATO peacekeepers, leading to more than 60 injuries  the worst violence in the region in more than a decade.

EXPLANATION:

Current issue:

• The current round of violence took place after ethnic Serbs who are a minority in Kosovo but are in a majority in northern Kosovo  tried to prevent Albanian mayors taking charge in local councils.
• The Albanians took control of the councils after Serbs boycotted local elections in Kosovo’s north in April. Results of the elections, which saw a turnout of less that 3.5%, were rejected by the Serbs as a sham.
• Northern Kosovo has seen frequent tensions that have their roots in the larger ethnic and political divide between the ethnic Serbs and the Albanians.

Location of Serbia and Kosovo:

• Serbia, a landlocked country in eastern Europe that shares borders with, among other countries, Hungary, Romania, and Bulgaria.
• Kosovo is a region that lies to Serbia’s southwest, sharing borders with North Macedonia, Albania, and Montenegro. Kosovo declared independence from Serbia in 2008, but Serbia does not recognise Kosovo’s statehood.

What was the Kosovo conflict about?

• Serbs and Albanians are ethnicities who have been living in this region for centuries.
• Serbs are Eastern Orthodox Christians, while the Albanians in Kosovo are majority Muslims. Other ethnic groups, such as the Bosnians and the Turks, are minority populations. Serbs are in the majority in Serbia while Albanians are in the majority in the Kosovo region.
• For many Serbians, the Kosovo region, is the “heart” of its national and religious identity and home to numerous cherished mediaeval Serb Orthodox Christian monasteries.
• Serbian nationalists view the 1389 Battle of Kosovo between the Serbian prince Lazar Hrebeljanovic and the Ottoman Sultan Murad Hudavendigar as a defining moment in their national struggle.
• On the other hand, Kosovo’s majority ethnic Albanians view Kosovo as belonging to them, and accuse Serbia of occupation and repression.

Background:

• From 1945, after the end of World War II, until 1992, the area in the Balkans comprising present-day Bosnia and Herzegovina, Croatia, Macedonia, Montenegro, Serbia, and Slovenia, was one country, officially known as the Socialist Federal Republic of Yugoslavia (SFRY), or simply Yugoslavia, with its capital at Belgrade, which is now the capital of Serbia.
• As part of Yugoslavia, the republic of Serbia included the regions of Kosovo and Vojvodina. Within Serbia, Kosovo and Vojvodina held the status of autonomous provinces.
• In the early 1990s, as the USSR collapsed, Yugoslavia followed and each of these republics broke away to become independent countries, beginning with Slovenia in 1991.
• The International Criminal Tribunal for the former Yugoslavia (ICTY), a United Nations court of law that dealt with war crimes committed during this time, noted that coinciding with the collapse of communism and resurgent nationalism in Eastern Europe during the late 1980s and early 1990s, Yugoslavia experienced a period of intense political and economic crisis.
• Central government weakened while militant nationalism grew apace. Political leaders used nationalist rhetoric to erode a common Yugoslav identity and fuel fear and mistrust among different ethnic groups.
• Ethnic Albanian rebels launched a rebellion under the Kosovo Liberation Army (KLA) in 1998 to rid the country of Serbian rule. Serbia’s brutal response under President Slobodan Milošević prompted an intervention by NATO in 1999, which forced Serbia to cede control to international peacekeepers.
• NATO then carried out a 78-day-long campaign of air strikes against targets in Kosovo and Serbia. In response, Serb forces further intensified the persecution of the Kosovo Albanian civilians, having accused them earlier of changing the demography of their nation.
• Ultimately, Milošević agreed to withdraw his troops and police from the province of Kosovo. Some 750,000 Albanian refugees came back home, and about 100,000 Serbs — roughly half the province’s Serb population fled in fear of reprisals.
• In June 1999, Serbia agreed to the international administration of Kosovo with the final status of the province still unresolved. Several Serb leaders, including Milošević, were indicted by the UN’s war crimes tribunal for their role in the war

What has been the status of Kosovo since then?

• While Kosovo declared independence in 2008, Serbia still considers it to be an integral part of Serbian territory. Countries such as India, China, and Russia do not recognise Kosovo as a separate country, while the US, the majority of EU countries, Japan and Australia do so.

3. CYBER SECURITY FOR PAYMENT SYSTEM OPERATORS

TAG: GS 3: ECONOMY

CONTEXT: The Reserve Bank of India has released the draft Master Directions on Cyber Resilience and Digital Payment Security Controls for Payment System Operators.

EXPLANATION:

• The draft covers governance mechanism for identification, assessment, monitoring and management of cyber security risks including information security risks and vulnerabilities, and specify baseline security measures for ensuring safe and secure digital payment transactions.
• The directions are being issued to ensure that the authorised non-bank Payment System Operators (PSOs) are resilient to traditional and emerging information systems and cyber security risks,
• The Directions will also cover baseline security measures for ensuring system resiliency as well as safe and secure digital payment transactions.
• However, they will endeavour to migrate to the latest security standards. The existing instructions on security and risk mitigation measures for payments done using cards, Prepaid Payment Instruments (PPIs) and mobile banking continue to be applicable hitherto.

PAYMENT SYSTEM OPERATORS:

• The payment System Operator is an authorized party that is registered under the Companies Act, 1956 or the Companies Act, 2013 that undertakes the operation of payment systems. They provide services and operate on a certain model and mainly deal in payment and settlement-related activities.
• PSOs in India include Clearing Corporation of India, National Payments Corporation of India, Cards Payment Networks, Cross border Money Transfer, ATM networks, Prepaid Payment Instruments, White Label ATM Operators, Instant Money Transfer, and Trade Receivables Discounting System, Bharat Bill Payment System.

4. 9TH ANNIVERSARY OF TELANGANA’S STATEHOOD

TAG: GS 2: POLITY

CONTEXT: With assembly elections just months away, political parties across the board are celebrating the 9th anniversary of Telangana’s statehood on June 2, 2023.

EXPLANATION:

• Telangana, the newest state of India, has a complex history. Pre-Independence, it was a part of the princely state of Hyderabad. While there were talks of statehood in the 1950s, the region was eventually merged with the adjoining Andhra State to form Andhra Pradesh.
• Finally, in 2014, after decades of struggle, Telangana was carved out of the erstwhile Andhra Pradesh.

PART I: Princely State of Hyderabad, post-independence Hyderabad State:

• Present-day Telangana comprised the south and south-east Telugu-speaking regions of the Princely State of Hyderabad. The city of Hyderabad itself lay at the heart of the region, but unlike the areas around it, was dominated by the Urdu-speaking Muslim elite. Ruled by Nizam Osman Ali Khan, Hyderabad was among the largest and most prosperous princely states in the country.
• In 1945, a communist-supported rebellion broke out in Telangana against the prevailing jagirdari (land-revenue) system. The Nizam’s response was brutal, unleashing a local militia, known as the Razakars, on the protesting peasants.
• After Independence and the Partition in 1947, the Nizam of Hyderabad was unwilling to accede to India. In the meantime, the Razakars under Kasim Razvi, terrorised the population, lest any attempts to overthrow the Nizam be made.
• In order to usher in a modicum of stability in the state, India signed the Standstill Agreement with Hyderabad in November 1947, which stated that all administrative agreements that were in place between the Nizam and the British Crown would continue between the Nizam and India.
• However, almost instantly, the terms of the agreement were violated by the Nizam. Not only did he let the Razakars run amok, he also restricted exports of precious metals to India, began negotiating with Pakistan, and stopped accepting the Indian rupee as legal tender. The Razakars even began carrying out “border raids” in neighbouring states.
• As the state started falling into anarchy, India intervened militarily, launching “Operation Polo” in September 1948. Within a week, India had taken control of Hyderabad’s administration.
• On January 26, 1951, when India became a republic, Hyderabad was accorded the status of a Part-B state, with the Nizam as the Rajpramukh and an elected chief minister.

PART II: Linguistic reorganisation and the creation of Andhra Pradesh

• The erstwhile Madras state was huge, covering areas which spoke all the major languages of South India. In 1952, Potti Sriramalu went on a fast-unto-death demanding a separate Telugu state. He died after 56 days, triggering unrest across the region and eventually leading to the formation of the Andhra State out of the north and north eastern regions of the Madras state in 1953
• Moreover, Sriramalu’s death made the government seriously reconsider its position on linguistic states. The States Reorganisation Committee came into existence in 1953 and submitted its report two years later. Notably, it recommended that Hyderabad be reorganised linguistically the Marathi-dominant Marathwada would be integrated into the bilingual Bombay state and south western Kannada-dominant districts would be integrated into the Mysore state.
• The status of the Telugu-dominant Telangana region was contentious. While Andhra wanted to merge with Telangana to create a united Vishalandhra, the SRC itself did not favour this, instead recommending Telangana be a separate state till at least 1961, when it would be given the opportunity to voluntarily merge with Andhra.
• But the States Reorganisation Act passed in 1956 ignored this recommendation, merging Andhra State and Telangana into a single state called Andhra Pradesh, with Hyderabad as the capital. For some, like KCR, this was the point where a struggle for a separate Telangana state began.

PART III: The struggle for Telangana and the creation Telangana State

• However, the sense of Telangana as a separate entity predated even Independence. Under the rule of the Nizam, the Telangana region had in force Mulki Rules domicile rules which ensured that only native residents were able to get government jobs in the region
• Since Independence, protests regularly broke out in Telangana demanding the strict adherence to these rules, the first one being in 1952. However, it was in January 1969, after the creation of Andhra Pradesh, that the region witnessed its most widespread protests yet.
• While the government sprung to action, promising to “transfer all non-Telangana employees holding posts reserved for Telangana domiciles”, the issue refused to die down. The protests gave birth to the Telangana Praja Samiti, which called for a separate Telangana state. Over the next few years, Mulki Rules were at the centre of protests as well as legal cases.
• Finally, in September of 1973, Indira Gandhi initiated the 32nd Amendment to the Constitution, which declared that Andhra Pradesh would be divided into 6 zones, with reservation for jobs being decided on the basis of zones. As a result, the original Mulki Rules Act was repealed, and the movement for Telangana lost some steam.
• It would finally be revived by KCR in 2001. A member of the Telugu Desam Party (TDP), he resigned and established his own political party – the Telangana Rashtra Samithi (TRS) with the singular aim of creating a new state of Telangana with Hyderabad as its capital.
• While his performances in polls were underwhelming, the sudden death of Andhra Pradesh’s Chief Minister Y S Rajsekhara Reddy of the Congress in 2009, presented an opportunity to KCR. Reddy was the tallest leader of Andhra Pradesh at the time and post his death, political turmoil ensued. On November 29, 2009, KCR began a fast-unto-death demanding statehood. The Congress, which at the time was also under pressure nationally, relented within 10 days promising the creation of the state of Telangana.
• After extensive discussion on the specifics of the state boundary and the choice of capital (for the new Andhra State), Telangana came into existence around four and a half years later, in 2014. KCR was the first chief minister and Hyderabad was chosen the joint capital of both Andhra and Telangana for a period of ten years, after which Andhra would have to shift its capital elsewhere.

5. STRATEGIC OIL RESERVES IN INDIA

TAG: PRELIMS PERSPECTIVE

CONTEXT: Government-owned engineering consultancy firm Engineers India (EIL) is studying the prospects and feasibility of developing salt cavern-based strategic oil reserves in Rajasthan, in line with the government’s objective of increasing the country’s strategic oil storage capacity. India could get its first salt cavern-based oil storage facility if this become successful.

EXPLANATION:

Strategic Oil Reserves in India:

• Countries build strategic crude oil reserves to mitigate major supply disruptions in the global supply chain.
• India is the world’s third-largest consumer of crude, depends on imports for more than 85% of its requirement and strategic petroleum reserves (SPR) could help ensure energy security and availability during global supply shocks and other emergencies.
• India has three existing strategic oil storage facilities at Mangaluru and Padur in Karnataka, and Visakhapatnam in Andhra Pradesh  are made up of excavated rock caverns.

• India currently has an SPR capacity of 5.33 million tonnes, or around 39 million barrels of crude, that can meet around 9.5 days of demand.
• The country is in the process of expanding its SPR capacity by a cumulative 6.5 million tonnes at two locations Chandikhol in Odisha (4 million tonnes) and Padur (2.5 million tonnes).
• India’s strategic oil reserves come under the Petroleum Ministry’s special purpose vehicle Indian Strategic Petroleum Reserve (ISPRL).

Strategic petroleum reserves programme: Background

• India’s strategic oil reserves are part of the effort to build sufficient emergency stockpiles on the lines of the reserves that the US and its Western allies set up after the first oil crisis of the 1970s. The three existing rock cavern-based facilities were built during the first phase of the programme.
• Crude oil from the reserves are to be released by an empowered committee set up by the government, in the event of supply disruptions due to a natural calamity or an unforeseen global event leading to an abnormal increase in prices.
• The International Energy Agency (IEA), a Paris-based autonomous intergovernmental organisation in which India is an ‘Association’ country, recommends that all countries should hold an emergency oil stockpile sufficient to provide 90 days of import protection.
• In India, apart from the SPR that are sufficient to meet 9.5 days of oil requirement, the oil marketing companies (OMCs) have storage facilities for crude oil and petroleum products for 64.5 days which means there is sufficient storage to meet around 74 days of the country’s petroleum demand.

Salt cavern-based reserves v. rock cavern-based reserves:

• Salt cavern-based storage, which is considered cheaper and less labour- and cost-intensive than rock caverns.
• Unlike underground rock caverns, which are developed through excavation, salt caverns are developed by the process of solution mining, which involves pumping water into geological formations with large salt deposits to dissolve the salt.
• After the brine (water with dissolved salt) is pumped out of the formation, the space can be used to store crude oil. The process is simpler, faster, and less cost-intensive than developing excavated rock caverns.
• Salt cavern-based oil storage facilities are also naturally well-sealed, and engineered for rapid injection and extraction of oil. This makes them a more attractive option than storing oil in other geological formations, according to a report by the Environmental Solutions Initiative at the Massachusetts Institute of Technology (MIT).
• The salt that lines the inside of these caverns has extremely low oil absorbency, which creates a natural impermeable barrier against liquid and gaseous hydrocarbons, making the caverns apt for storage.
• Also, unlike rock caverns, salt cavern-based storages can be created and operated almost entirely from the surface.
• Salt caverns are also used to store liquid fuels and natural gas in various parts of the world. They are also considered suitable for storing compressed air and hydrogen.
• The entire SPR programme of the United States has so far been based on salt cavern-based storage facilities. The US Strategic Petroleum Reserve, the world’s largest emergency oil storage, consists of four sites with deep underground storage caverns created in salt domes along the Gulf of Mexico coast in Texas and Louisiana. The US strategic oil reserves have a cumulative capacity of around 727 million barrels.

1. EXCAVATION AT PURANA QILA AND PRE MAURYAN CONNECTION

TAG: GS 1: ART AND CULTURE

CONTEXT: A fresh round of excavations at the site of Delhi’s Purana Qila or Old Fort has uncovered evidence of the continuous history of the city since the pre-Mauryan era. The findings include shards of Painted Gray Ware pottery which are usually dated to around 1200 BC to 600 BC.

EXPLANATION:

• The new excavations have also found remains of a 900-year-old Vaikuntha Vishnu from the Rajput period, a terracotta plaque of Goddess Gaja Lakshmi from the Gupta period, the structural remains of a 2,500-year-old terracotta ring well from the Mauryan period, and a well-defined four-room complex from the Sunga-Kushan period dating back to 2,300 years ago, besides beads, seals, copper coins and a bone needle.
• Trade activities: More than 136 coins and 35 seals and sealings have been discovered from a small excavated area, indicating the site’s pivotal role as a centre for trade activities.
• Earlier efforts have revealed nine cultural levels, representing different historical periods, including pre-Mauryan, Mauryan, Sunga, Kushana, Gupta, post-Gupta, Rajput, Sultanate, and Mughal. The ongoing excavation, initiated in January 2023, aims to establish a complete chronology of the site.

Pre Mauryan characteristics:

• The political system at the time of pre mauryan was characterized by the existence of two distinct forms of government: monarchical kingdom and clan oligarchies or Ganasamghas.
• The geographical locations of these units were unique with the monarchical kingdom occupying the Ganga-Yamuna valley and the Ganasamghas being located near the foothills of the Himalayas.
• The agrarian based economy encouraged the formation of an impressive officialdom that is an indispensable aspect of state formation.
• It made possible the support of a large standing army that was imperative for the expanding frontiers of the kingdoms of the Ganga valley and as an instrument of coercive control within the kingdom.
• The standing army divided into various specialized groups replaced the tribal militia of the earlier society and became an instrument of coercion directly in the control of the king.

Purana qila:

• Purana Qila, built by Sher Shah Suri and Mughal emperor Humayun, is believed by many to be the site of Indraprastha, as mentioned in the Mahabharat.
• The fort was the inner citadel of the city of Din Panah during Humayun’s rule who renovated it in 1533 and completed five years later.
• Shah Suri, defeated Humayun in 1540, naming the fort Shergarh; he added several more structures in the complex during his five-year reign. Purana Qila and its environs flourished as the “sixth city of Delhi”.
• Purana Quila is roughly rectangular in shape having a circuit of nearly two kilometers.
  The thick ramparts crowned by merlons have three gateways provided with bastions on either side.
• It was surrounded by a wide moat, connected to river Yamuna, which used to flow on the east of the fort.
• The northern gate way, called the Talaqui darwaza or the forbidden gateway, combines the typically Islamic pointed arch with Hindu Chhatris and brackets; whereas the southern gateway called the Humayun Darwaza also had a similar plan.
• The massive gateway and walls of Purana Quila were built by Humayun and the foundation laid for the new capital, Dinpanah.

2. DISCLOSURE NORMS FROM HIGH-RISK FOREIGN PORTFOLIO INVESTORS (FPIs)

TAG: GS 3: ECONOMY

CONTEXT: The markets regulator SEBI floated a consultation paper mandating additional disclosure norms from high-risk foreign portfolio investors (FPIs) that have either concentrated single group exposures and/ or significant overall holdings in their India equity investment portfolio.

EXPLANATION:

• SEBI said there is a need for additional disclosures for certain types of FPIs in order to have greater investor protection, and for fostering greater trust and transparency in the Indian securities market ecosystem.
• The paper has mandated additional disclosure norms from these FPIs to guard against possible circumvention of Minimum Public Shareholding (MPS), and to prevent possible misuse of the FPI route to circumvent the requirements of Press Note 3 (PN3).
• SEBI said such disclosures must be unconstrained by any materiality thresholds set by the PMLA (Prevention of Money Laundering) rules and FPI regulations.
• The paper has proposed to categorize FPIs into high, moderate and low risk. All FPIs except for government and government-related entities such as central banks, sovereign wealth funds, and pension funds or public retail funds, are proposed to be categorized as high-risk FPIs.

What has SEBI proposed?

• The markets regulator has proposed that enhanced transparency measures for fully identifying all holders of ownership, economic, and control rights may be mandated for certain high-risk FPIs.
• It proposed that high-risk FPIs, holding more than 50 per cent of their equity Asset Under Management (AUM) in a single corporate group, would be required to comply with the requirements for additional disclosures.
• Also, the existing high-risk FPIs with an overall holding in Indian equity markets of over Rs 25,000 crore will also be required to comply with new disclosure requirements.
• They will have to follow the new norms within 6 months, failing which the FPI will have to bring down its AUM below the threshold within a time frame.

What is Press Note 3?

• During the Covid-19 pandemic, the government amended the Foreign Direct Investment (FDI) policy through a Press Note 3.
• The amendments were said to have made to check opportunistic takeovers/acquisitions of stressed Indian companies at a cheaper valuation.
• The new regulations required an entity of a country, sharing land border with India or where the beneficial owner of an investment into India is situated or is a citizen of any such country, to invest only under the Government route.
• Also, in the event of the transfer of ownership of any existing or future FDI in an entity in India, directly or indirectly, resulting in the beneficial ownership falling within the restriction/purview of the said policy amendment, such subsequent change in beneficial ownership will also require government approval.

Will the proposed norms be applicable to FPIs?

• The capital markets regulator said the proposed additional requirements are for high-risk FPIs and will not impact low-risk and moderate-risk FPIs in any

Foreign portfolio investment (FPI):

• Foreign portfolio investment (FPI) is a common way to invest in overseas economies.
• It includes securities and financial assets held by investors in another country.
• It also includes bonds or other debt issued by these companies or foreign governments, mutual funds, or exchange-traded funds (ETFs) that invest in assets abroad or overseas.
• On a macro-level, foreign portfolio investment is part of a country’s capital account and shown on its balance of payments (BOP). BOP calculates the amount of money flowing from one country to other countries over a financial year.
• FPI is relatively liquid depending on market volatility.
• Individual investors interested in opportunities outside their own country invest via FPI.  It does not give investors direct ownership of a company’s assets.

3. AIMING FOR NATIONALLY DETERMINED CONTRIBUTIONS (NDC) TARGETS

TAG: PRELIMS PERSPECTIVE

CONTEXT: While India may have internationally committed in its Nationally Determined Contributions(NDC) to half its installed electricity being sourced from renewable sources by 2030, an estimate of the country’s projected power needs by the Central Electricity Authority (CEA) suggests that this target may be achieved early, by 2026-27.

EXPLANATION:

• National Electricity Plan (NEP) notes that the share of non-fossil based capacity is likely to increase to 57.4% by the end of 2026-27 and may likely to further increase to 68.4% by the end of 2031-32 from around 42.5% as on April 2023.”
• Installed capacity, however, does not perfectly translate into generated power as different sources of energy have varying efficiencies, and not all sources of power are available at all times. Accounting for this, the available power from renewable energy will only be around 35.04% of the total generated electricity by 2026-27 and 43.96% by 2031-32, the NEP estimates.
• The NEP projects that the likely installed capacity for 2026-27 would be 609,591 MW, comprising 273,038 MW of conventional capacity (coal-235,133 MW, gas-24,824 MW, nuclear-13,080 MW) and 336,553 MW of renewable-based capacity (large hydro-52,446 MW, solar-185,566 MW, wind-72,895 MW, small hydro-5,200 MW, biomass-13,000 MW, pump storage plants-7,446 MW) along with Battery Energy Storage System (BESS) capacity of 8,680 MW/34,720 MWh.
• By 2031, the proportion of renewable energy capacity in the overall mix is likely to be 66%. Thus, in 2031-32, the total capacity is estimated to be 900,422 MW comprising 304,147 MW of conventional capacity (coal-259,643 MW, gas–24,824 MW, nuclear-19,680 MW) and 596,275 MW of renewable-based capacity (large hydro-62,178 MW, solar-364,566 MW, wind-121,895 MW, small hydro-5,450 MW, biomass-15,500 MW, pump storage plants-26,686 MW), along with BESS capacity of 47,244 MW/236,220 MWh.

Nationally Determined Contribution (NDC)

• Following Prime Minister 2022 announcement in Glasgow, Scotland of India’s 2070 Net Zero target, India updated its Nationally Determined Contribution (NDC) in August 2022 whereby it committed to achieving “about 50 percent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030 and reduce emission intensity by 35 percent from 2005 levels, and become carbon-neutral by 2070.
• The NDCs are commitments made by countries under the terms of the Paris Agreement to keep global temperatures from rising beyond two degrees Celsius by the end of the century, and are required to be updated once in five years.

Central Electricity Authority

• It is a Statutory Body constituted under the erstwhile Electricity (Supply) Act, 1948, hereinafter replaced by the Electricity Act, 2003, where similar provisions exists, the office of the CEA is an “Attached Office” of the Ministry of Power.
• The CEA is responsible for the technical coordination and supervision of programmes and is also entrusted with a number of statutory functions.
• It is headed by a Chairman, who is also ex-officio Secretary to the Government of India, and comprises six full time Members of the CEA of the rank of ex-officio Additional Secretary to the Government of India, they are designated as Member (Thermal), Member (Hydro), Member (Economic and Commercial), Member(Power Systems), Member(Planning) and Member(Grid Operation and Distribution).
• Section 73 of the Electricity Act, 2003 empowers the Authority to perform such functions and duties as the Central Government may prescribe or direct, and in particular to: –

1. a) Advise the Central Government on the matters relating to the national electricity policy, formulate short-term and perspective plans for development of the electricity system and co-ordinate the activities of the planning agencies for the optimal utilization of resources to sub serve the interests of the national economy and to provide reliable and affordable electricity for all consumers
2. b) Specify the conditions for installation of meters for transmission and supply of electricity:
3. c) Promote and assist in the timely completion of schemes and projects for improving and augmenting the electricity system
4. d) Promote measures for advancing the skill of persons engaged in the electricity industry
5. e) Advise the Central Government on any matter on which its advice is sought or make recommendation to that Government on any matter if, in the opinion of the Authority, the recommendation would help in improving the generation, transmission, trading, distribution and utilization of electricity.

National Electricity Plan

• It is prepared by the CEA and is a five-year plan that assesses India’s current electricity needs, projected growth, power sources, and challenges.
• It is prepared in accordance with the National Electricity Policy and notify such plan once in five years.

Central Electricity Regulatory Commission (CERC)

• CERC is a statutory body constituted under the provision of the erstwhile Electricity Regulatory Commissions Act, 1998 and continued under Electricity Act, 2003 (which has since repealed inter alia the ERC Act, 1998).
• The main functions of the CERC are to regulate the tariff of generating companies owned or controlled by the Central Government, to regulate the tariff of generating companies other than those owned or controlled by the Central Government, if such generating companies enter into or otherwise have a composite scheme for generation and sale of electricity in more than one State, to regulate the inter-State transmission of energy including tariff of the transmission utilities, to grant licences for inter-State transmission and trading and to advise the Central Government in formulation of National Electricity Policy and Tariff Policy.

State Electricity Regulatory Commission (SERC)

• The concept of SERC as a statutory body responsible for determination of tariff and grant of licence at intra-State level was envisaged in the erstwhile Regulatory Commissions Act, 1998 and has been continued in the Electricity Act, 2003 (which has since repealed inter alia the ERC Act, 1998).
• Main responsibilities of the SERC are to determine the tariff for generation, supply, transmission and wheeling of electricity, whole sale, bulk or retail sale within the State; to issue licences for intra-State transmission, distribution and trading; to promote co-generation and generation of electricity from renewal sources of energy etc.

4. SECTION 124A OF THE INDIAN PENAL CODE (IPC)

TAG: GS 2: GOVERNANCE

CONTEXT: The Section 124A of the Indian Penal Code (IPC) dealing with sedition needs to be retained but certain amendments could be made for greater clarity regarding its usage, the 22nd Law Commission has said in its report to the government.

EXPLANATION:

Highlights of the 22^nd Law commission report:

• The commission said sedition being a “colonial legacy” is not a valid ground for its repeal but in view of the misuse of Section 124A, the panel has recommended that the Centre issue model guidelines to curb any misuse.
• In this context, it is also alternatively suggested that a provision analogous to Section 196(3) of the Code of Criminal Procedure, 1973 [CrPC] may be incorporated as a proviso to Section 154 of CrPC, which would provide the requisite procedural safeguard before filing of an FIR with respect to an offence under Section 124A of IPC.
• The Law Commission said the existence of laws such as Unlawful Activities (Prevention) Act (UAPA) and the National Security Act (NSA) does not by implication cover all elements of the offence envisaged under Section 124A of the IPC.
• Further, in the absence of a provision like Section 124A of IPC, any expression that incites violence against the government would invariably be tried under the special laws and counter-terror legislation, which contain much more stringent provisions to deal with the accused.
• While any alleged misuse of Section 124A of IPC can be reined in by laying down adequate procedural safeguards, repealing the provision altogether can have “serious adverse ramifications for the security and integrity of the country, with the subversive forces getting a free hand to further their sinister agenda as a consequence”.

IPC Section 124 A:

• The IPC Section 124 A says, “Whoever, by words, either spoken or written, or by signs, or by visible representation, or otherwise, brings or attempts to bring into hatred or contempt, or excites or attempts to excite disaffection towards the Government estab­lished by law in India shall be punished with [im­prisonment for life], to which fine may be added, or with impris­onment which may extend to three years, to which fine may be added, or with fine.
• The expression “disaffection” includes disloyalty and all feelings of enmity. It is a non-bailable offence.
• Section 124A is useful in the fight against anti-national, separatist, and terrorist factors, among others.
• It defends the elected government against attempts to destroy it through the use of violent acts and illegal methods.
• It helps in maintaining the legitimacy of the government established by law is a necessary condition for the cohesion of a state.

5. LITHIUM AND MINERAL REGULATION IN INDIA

TAG: PRELIMS PERSPECTIVE

CONTEXT: The news of potentially significant reserves of lithium, an element needed to manufacture batteries used in electric cars and other renewable energy infrastructure, in Jammu and Kashmir has been welcomed universally. Commentators have called this a boost for national prosperity and security without dismissing concerns about the potential social and environmental impacts.

EXPLANATION:

Status of India’s lithium industry:

• India’s electric-vehicle (EV) market was valued at $383.5 million in 2021, and is expected to expand to $152.21 billion in 2030.
• India imported 450 million units of lithium batteries valued at $929.26 million (₹6,600 crore) in 2019-2020, which makes the development of the country’s domestic lithium reserves a matter of high stakes. Scholars have argued that the ongoing global transition to low-carbon economies, the rapid expansion of artificial intelligence (AI), and 5G networks will greatly reshape global and regional geopolitics. The access to and control over rare minerals, such as lithium and cobalt, will play a crucial role in these epochal changes.

How do other countries manage lithium reserves?

• The Supreme Court also recalled that the Union government could always ban private actors from mining sensitive minerals, as is already the case with uranium under the Atomic Energy Act 1962. In today’s context, lithium is as important as, if not more than, uranium.
• The stories of two South American countries, Chile and Bolivia — which have the largest known reserves of lithium are particularly instructive. And here the government has designated lithium as a strategic resource and its development has been made the exclusive prerogative of the state.

Lithium:

• Lithium is the world’s softest and lightest metal, needed by battery-powered devices.
• It is soft enough to be cut with a vegetable knife and light enough to float when put in water.
• It stores chemical energy and converts it into electrical energy.
• Also known as ‘White Gold’, lithium attracts a massive demand in global markets as the metal is present in every chargeable electronic and battery-powered gadgets.
• According to a World Bank report, the global demand for lithium metal will increase by 500 percent by 2050.
• The metal is also widely used to manufacture wind turbines, solar panels, and EVs – which are the leading carbon-neutral alternatives for the future.
• A lithium battery is the only alternative for EVs since it has a high power-to-weight ratio, enabling it to provide a large charge while keeping the vehicle’s curb weight low.

Regulation of minerals in India:

• India’s mineral and mining sector operates under a federal structure where the powers and responsibilities for regulation of the sector are divided between the central government and the respective State governments in accordance with the Union List, State List and the Concurrent List contained in the Seventh Schedule of the Constitution of India.
• Administration of the mining sector in India is the collective responsibility of the central government and the State governments.
• The central government has the power under entry 54 of the Union List to regulate mines and mineral development to the extent that such a regulation is declared by the Parliament to be in public interest.
• The State governments’ power to regulate mines and mineral development under entry 23 of the State List is subject to the power of the central government.
• Further to its powers under entry 54 of the Union List, the central government has framed the Mines & Minerals (Development and Regulation) Act 1957 (MMDR Act), which is the principal legislation governing the mineral sector (other than petroleum and natural gas) in India.
• Minerals are classified into minor minerals and major minerals. Minor minerals include building stones, gravel, ordinary clay, ordinary sand and other minerals that the central government declares to be a minor mineral. Minerals that cannot be categorised as minor minerals are considered to be major minerals and include coal, manganese ore and iron ore, as well as other minerals used for industrial purposes.

1. EVERGREENING OF LOANS

TAGS: GS 3: ECONOMY

CONTEXT: Reserve Bank of India (RBI) Governor raised red flags over banks adopting innovative methods for evergreening of loans covering up the real status of stressed loans of corporates to project an artificial clean image in cahoots with corporates. However, bankers differ, saying that sometimes it is practical to extend liquidity support to companies that are genuinely facing issues.

EXPLANATION:

What is evergreening of loans?

• The process of evergreening of loans, a form of zombie lending, is typically a temporary fix for a bank. If an account turns into a non-performing asset (NPA), banks are required to make higher provisions which will impact their profitability.
• So, to avoid classifying a loan as an NPA, banks adopt the evergreening of loans. In the past, many banks had indulged in dressing up bad loans and given additional funds to companies who didn’t have the capacity to repay.

How evergreening of loans are done?

• An accommodative monetary policy creates an enabling environment for weak banks to evergreen loans to zombies and keeps them alive. The RBI has been following an accommodative policy since March 2020 when the pandemic struck the country.
• It is done by bringing two lenders together to evergreen each other’s loans by sale and buyback of loans or debt instruments.
• Here, good borrowers being persuaded to enter into structured deals with a stressed borrower to conceal the stress.
• It is done by use of internal or office accounts to adjust borrower’s repayment obligations.
• It is done by renewal of loans or disbursement of new/additional loans to the stressed borrower or related entities closer to the repayment date of the earlier loans.

Consequences:

• Most of the evergreening has happened in public sector banks which subsequently led to a jump in Non Performing Assets(NPAs).
• Banks delay the recognition of losses due to loan defaults and engage in evergreening, which is essentially the rolling over of debts of unviable borrowers that would have otherwise defaulted. This is purely misgovernance, so that bad loans are made to look good many a time by additional lending to troubled borrowers.
• Some banks have even extended such loans to wilful defaulters to keep them out of the defaulters’ books.
• Such resource misallocation supports the crowding-out effects ascribed to zombies, according to an RBI paper on Zombies and the Process of Creative Destruction.
• It results in credit being diverted to weak entities – which is ultimately diverted for other purposes or it becomes a bad loan – depriving the genuine credit needs of good borrowers.

When do banks evergreen loans?

• Restructuring is often used by banks for ‘evergreening’ problem accounts to keep the reported NPA levels low.
• However, with the enactment of the bankruptcy code, evergreening has declined but recovery has remained abysmally low.
• It normally happens due to the unholy relationship between bankers and borrowers.

How can evergreening be stopped?

• As suggested by committee to Review Governance of Boards of Banks wherever significant evergreening in a bank is detected by the RBI, penalties should be levied through cancellations of unvested stock options and claw-back of monetary bonuses on officers concerned.
• The primary defence against evergreening must however come from the CEO, the audit committee and the board. The audit committee, in particular, needs to be particularly vigilant.

What is Non Performing Assets(NPA):

• A loan turns into a nonperforming asset, or NPA, if the interest or instalment remains unpaid even after the due date and remains unpaid for a period of more than 90 days.

Different types of non-performing assets depend on how long they remain in the NPA category.

a) Sub-Standard Assets: An asset is classified as a sub-standard asset if it remains as an NPA for a period less than or equal to 12 months.

b) Doubtful Assets: An asset is classified as a doubtful asset if it remains as an NPA for more than 12 months.

c) Loss Assets: An asset is considered a loss asset when it is “uncollectible” or has such little value that its continuance as a bankable asset is not suggested. However, some recovery value may be left in it as the asset has not been written off wholly or in parts.

2. LEGAL PROVISIONS OF THE CONTRACT

TAGS: GS 2: GOVERNANCE

CONTEXT: The Supreme Court has held that the government, when entering into a contract under the President’s name, cannot claim immunity from the legal provisions of that contract under Article 299 of the Constitution.

EXPLANATION:

Issue:

• The case dealt with an application filed by Glock Asia-Pacific Limited, a pistol manufacturing company, against the Centre regarding the appointment of an arbitrator in a tender-related dispute
• Glock Asia Pacific entered into a contract with the Ministry of Home Affairs for the supply of 31,756 Glock pistols. Subsequently, there was a dispute between the two parties due to the Centre invoking a performance bank guarantee.
• Glock then issue a notice invoking arbitration, nominating a retired DelhiHigh Court judge as the sole arbitrator. When the government was called to accept this, it said that the arbitrator’s nomination violated one of the tender conditions that said an officer in the Law Ministry, appointed by the MHA Secretary, would be the arbitrator in case of a dispute.
• Thus, Glock challenged this clause in the agreement, which allowed a government officer to resolve the difference between the two parties as an arbitrator, as one party here was the MHA itself.
• A performance bank guarantee, similar to a letter of credit, is the bank’s promise that it will meet the debtor’s liabilities, provided that he fails to meet the contractual obligations.
• A letter of credit is essentially a financial contract between a bank, a bank’s customer and a beneficiary. Generally issued by an importer’s bank, the letter of credit guarantees the beneficiary will be paid once the conditions of the letter of credit have been met.
• Letters of credit are used to minimize risk in international trade transactions where the buyer and the seller may not know one another.

What did the court hold?

• One of the major grounds of the challenge given under Section 12(5) of the Arbitration and Conciliation Act, 1996, says that notwithstanding any prior agreement, any person whose relationship with the parties or counsel of the dispute falls under any of the categories in the Seventh Schedule will be ineligible to be appointed as an arbitrator.
• The Seventh Schedule includes relationships where the arbitrator is an employee, consultant, advisor, or has any other past or present business relationship with a party.
• Deciding the case in Glock’s favour, the court observed that the arbitration clause allowed a “serving employee of the Union of India, a party to the contract, to nominate a serving employee of the Union of India as the Sole Arbitrator.” Holding this to be in conflict with Section 12(5), the court allowed the present application.
• The court also appointed former SC judge Justice Indu Malhotra “as the Sole Arbitrator to adjudicate upon the disputes” in the case.
• Referring to the recommendation of the 246th Law Commission Report, which dealt with the issue of contracts with government entities, the court observed that when the party appointing an arbitrator is the State, “the duty to appoint an impartial and independent adjudicator is even more onerous.”
• Thus, the court rejected the Centre’s reliance on Article 299, saying, “Article 299 only lays down the formality that is necessary to bind the government with contractual liability” and not “the substantial law relating to the contractual liability of the Government”, which is to be found in the general laws of the land.

Article 299 of the Constitution:

• Article 298 grants the Centre and the state governments the power to carry on trade or business, acquire, hold, and dispose of property, and make contracts for any purpose,
• Article 299 delineates the manner in which these contracts will be concluded.
• Articles 298 and 299 came after the Constitution came into effect and the government entered into contracts even in the pre-independence era.
• According to the Crown Proceedings Act of 1947, the Crown could not be sued in court for a contract it entered into.
• Article 299 of the Constitution provides that “all contracts made in the exercise of the executive power of the Union or of a State shall be expressed to be made by the President or by the Governor of the State” and that all such contracts and “assurances of property made in the exercise of that power shall be executed” on behalf of the President or the Governor by persons in a manner as directed and authorised by them.
• Further, the phrase ‘expressed to be made and executed’ under Article 299 (1) means that there must be a deed or contract in writing and that it should be executed by a person duly authorised by the President of the Governor on their behalf.
• The objective behind Article 299(1), as per the 1954 top court ruling in ‘Chatturbhuj Vithaldas Jasani v. Moreshwar Parashram & Ors’, is that there must be a definite procedure according to which contracts must be made by agents acting on the government’s behalf; otherwise, public funds may be depleted by unauthorized or illegitimate contracts. It implies that contracts not adhering to the manner given in Article 299(1) cannot be enforced by any contracting party.
• However, Article 299 (2) says that essentially, neither the President nor the Governor can be personally held liable for such contracts.

What are the requirements for government or state contracts?

• In its judgement, the court referred to its 1966 ruling in ‘K.P. Chowdhry v. State of Madhya Pradesh. And Others’, which laid down essential requirements for government contracts under Article 299.
• In that ruling, the top court had reiterated three conditions to be met before a binding contract against the government could arise, namely:

(i)the contract must be expressed to be made by the Governor or the Governor-General

(ii) it must be executed in writing

(iii) the execution should be by such persons and in such manner as the Governor or the Governor-General might direct or authorise.

• Prior to this, the Apex Court, in its 1962 ruling in ‘State of Bihar v. Messrs. Karam Chand Thapar’, had laid down these three conditions too.

3. A COMMEMORATIVE COIN OF RS 75 DENOMINATION ON INAUGURATION OF NEW PARLIAMENT

TAGS: PRELIMS PERSPECTIVE

CONTEXT: To mark the inauguration of the new Parliament building, Prime Minster released a commemorative coin of Rs 75 denomination. In a notification released ,the Ministry of Finance first announced the launch of the coin. “The coin of Seventy-Five Rupees denomination shall be coined at the Mint for issue under the authority of the Central Government.

EXPLANATION:

• India has been issuing commemorative coins since the 1960s for several reasons such as paying homage to notable personalities, spreading awareness about government schemes, or remembering key historic events.
• The country released its first commemorative coin in 1964 in honour of Jawaharlal Nehru, who had passed away that year.

Features of commemorative coin:

• As per the Ministry of Finance notification, the latest Rs 75 coin is circular in shape with a diameter of 44mm. The composition of the coin is of a quaternary alloy 50 per cent silver, 40 per cent copper, 5 per cent nickel and 5 per cent zinc.
• “The face of the coin shall bear the Lion Capitol of Ashoka Pillar in the centre, with the legend “सत्यमेि जयते” (Satyameva Jayate) inscribed below, flanked on the left periphery with the word “भारत” (Bharat) in Devnagri script and on the right periphery the word “INDIA” in English.
• It added that the other side of the coin displays an image of the new parliament building. The inscription “Sansad Sankul” is written in Devanagari script on the upper periphery while the words “Parliament Complex” in English on the lower periphery of the coin.
• If someone wants to acquire commemorative coins, they can do so by visiting the website of the Securities of Printing and Minting Corporation of India Limited (SPMCIL).
• The Coinage Act, 2011 gives the central government the power to design and mint coins in various denominations. In the case of coins, the role of the RBI is limited to the distribution of coins that are supplied by the central government.
• All coins are minted in the four mints owned by the Government of India in Mumbai, Hyderabad, Kolkata and Noida

Securities of Printing and Minting Corporation of India Limited (SPMCIL)

• It a wholly owned Schedule ‘A’ Miniratna Category-I company of Government of India, incorporated on 13th January, 2006.
• SPMCIL, technically a new entity, has centuries-old experience in Security Printing and Minting.
• The management, control, maintenance and operations of the erstwhile 9 production units under Currency and Coinage division, Department of Economic Affairs, Ministry of Finance, Government of India, was transferred to SPMCIL on February 10, 2006.
• The Ministry of Finance exercises its administrative control over SPMCIL through Board of Directors.
• SPMCIL is engaged in the manufacture/ production of Currency and Bank Notes, Security Paper, Non-Judicial Stamp Papers, Postal Stamps & Stationery, Travel Documents viz. Passport and Visa, Security certificates, Cheques, Bonds, Warrant, Special Certificates with security features, Security Inks, Circulation & Commemorative Coins, Medallions, Refining of Gold & Silver, and Assay of Precious Metals.

Coinage Act, 2011

• The Coinage Act was enacted on 1^st September 2011 and it extends to the whole of India.
• The Coinage Act, 2011 was enacted to consolidate the laws in relation to coinage and the mints and its protection.
• The Act puts a strict bar on activities like melting, destruction, making or possession of the coins thereof for issue and for matters connected therewith or incidental thereto
• RBI functions as an agent of the Government in the distribution of Coins. It is responsible for making decisions on the pattern, production and the all-inclusive management of the nation’s currency, with the aim of ensuring an adequate supply of clean and genuine notes.

Under the Act, the Government has the authority to —

• Establish a Mint at any place which may be managed by it or by any other person, upon whom the purpose is devolved
• Abolish any Mint.

4. GURU RAVIDAS

TAGS: GS 1: ART AND CULTURE

CONTEXT: In California, members of an under-the-radar, minority religious community are stepping into the public eye to advocate for making the state the first in the nation to outlaw caste bias. They are the Ravidassia followers of Ravidass, a 14th century Indian guru who preached caste and class equality. There are about 20,000 members of the community in California, most of them in the Central Valley.

EXPLANATION:

Guru Ravidass:

• Ravidass was born in the 14th century in a village near Varnasi, India, to a family of cobblers and tanners who belonged to the then-untouchable or leather-working caste known as “chamars.”
• Guru Ravidassbelonged to the lowest-rung of the caste system formerly considered untouchable and also known as Dalit, which means “broken” in Hindi.
• Ravidass was an Indian guru, mystic and poet who was one of the most renowned figures in the North Indian bhakti movement, which placed love and devotion to god above all and preached against the caste system.
• The Guru Granth Sahib, which is the sacred text of Sikhism, bears 40 verses or shabads of Ravidass.

Ravidassia temples:

• A Ravidassia place of worship is called a sabha, dera, gurdwara or gurughar, which could all be translated as temple.
• The temples serve a post-worship meal as Sikh gurdwaras also do, which is known as langar.
• Ravidassia temples often display idols and/or pictures of Guru Ravidass in the prayer halls.

The Ravidassia identity:

• Many male Ravidassia members wear long hair in a turban and carry Sikh articles of faith such as the kada or bracelet, kangha or wooden comb and kirpan, the sheathed, single-edged knife.
• Many men and women in the community also have Sikh last names Singh and Kaur.
• Idols and images of Ravidass, however, can only be seen in a Ravidass temple.
• In addition, the community celebrates the birthday of their guru, which typically falls in February. Many Ravidass temples also observe the birth anniversary of B.R. Ambedkar, the Indian Dalit rights icon whose given name was Bhimrao.
• The faith also has followers who are Hindu and those who are from different parts of India.
• Ravidassia community members in California are largely of Punjabi descent.

5. ENVIRONMENTAL IMPACT OF CONSUMPTION

TAGS: GS 3: ENVIRONMENT

CONTEXT: The ever-increasing demand for agricultural products is leading to significant social and environmental consequences worldwide. The expansion of international trade has created global supply chains, directly linking consumers to geographically-distant impacts, including carbon emissions, biodiversity loss, freshwater depletion, soil degradation and labour-rights issues – all of which have local, regional, and global relevance.
EXPLANATION:

• Due to its vast size and consumer market, India is a global anchor of the trade in agricultural products. It has also undergone remarkable social and economic development over the last several decades. This has led to an increasing demand as well as supply of these products.
• Large land areas in India are used to service the international demand for grains, fruits, and vegetables, among other products, which puts pressure on national soil and water resources. At the same time, India’s vast consumer market means that large amounts of land, even outside its borders, are used to satisfy domestic demand.

What is food-based impact accounting?

• The expansion of such imports has contributed to increasing the environmental pressure in the exporting countries.
• Tackling these demand-supply dynamics is now a key aspect of international environmental governance.
• The current paradigm in measuring impacts and allocating responsibility is based on a production-based accounting method: it measures impacts in the place where the products are produced.
• There are concerns about its limitations in managing ‘leaks’, fixing accountability, and ensuring equity and justice among producers and consumers.

What is consumption-based accounting?

• Consumption-based accounting accounts for impacts at the point of consumption, attributing all the social and environmental impacts that occurred during production and trade to the final products and to the eventual consumers.
• That is, the approach urges the consumer (whether social groups or countries) to accept responsibility for the embodied or ‘virtual’ impacts of the product that is being consumed.
• This approach has become prominent thanks to growing concerns around the divide between countries that are producers and those that are consumers, leading to a high degree of international co-dependence.

What is the demand perspective?

• From a demand perspective, the basis for this approach is straightforward: since the pressure on natural and human resources is largely the direct result of consumption practices in developed economies, the responsibility for any consequences due to the production process should fall on those consumers as well.
• A consumption-based approach thus highlights the responsibility of industrialised states to mitigate impact and the rights of developing economies to not carry an excexcessive burden. This is an extension of the principle of common but differentiated responsibilities that make up global climate governance.

What is the supply perspective?

• From a supply perspective, the proponents of consumption-based accounting claim that it can encourage cleaner production since producer countries are implicitly encouraged to implement strategies that lower the environmental footprint of their exports.
• The approach can also go a long way to fix ‘leaks’ in production systems, where production is often taken to jurisdictions that are relatively lenient about production standards (including India).

What are the benefits for environmental action?

• The application of this approach to estimate carbon emissions, in the form of embodied emissions, and water use, in the form of virtual water, has also been around in the scientific literature for some time, but has only recently made inroads into policy making.
• Even from a consumption-based accounting perspective, India finds itself in a unique position. Currently, major developed economies have an environmental footprint in India because of their consumption of Indian agricultural produce. Conversely, India’s own deforestation footprint outside its borders has increased over the last two decades and is rapidly growing, even if it remains below that of several G-20 countries on a per-capita basis.

1. HYSTERECTOMIES

TAGS: GS 2: HEALTH ISSUES

CONTEXT: In 2020, a study on Maharashtra’s cane cutters identified a widening blind spot in women’s health: the unchecked rise of hysterectomies. Laws regulating private clinics were poorly implemented, awareness about the procedure of uterus removal was dismal, gynaecological services were absent and no standard protocols existed, the authors noted.

EXPLANATION:

• As per National Family Health Survey-5 data, half of the women reportedly go through hysterectomies before they turn 35.
• This is a serious violation of the fundamental rights of the women who underwent unnecessary hysterectomies.
• After caesarean deliveries, hysterectomies are the second-most frequent procedure in women of the reproductive age group.

When and Why, it should be conducted?

• Medically, hysterectomies should be conducted in the later part of an individual’s reproductive life, or as an intervention during emergencies.
• Noted medical indications for removing a uterus include fibroids (growths around the uterus), abnormal uterine bleeding and uterine prolapse, chronic pelvic pain, and premalignant and malignant tumours of the uterus and cervix. In some cases, oophorectomy, the removal of ovaries (the primary source of estrogen), is also frequently performed, which is a form of surgical menopause and linked to several chronic conditions.

Effects of hysterectomy:

• There is evidence about the long-term effects of hysterectomy both with or without oophorectomy (removal of ovaries).
• A 2022 review of 29 studies found a correlation between hysterectomy and chronic diseases including an increased risk of cardiovascular events, cancers, depression, metabolic disorders, and dementia (Journal of Clinical Medicine).
• In India, hysterectomies in women above 45 years of age were associated with hypertension, high cholesterol, diabetes and bone disease, aching joints, back pain, depression, and insomnia, among other side effects, impairing their health and ability to work.

Government measures:

• Union Health Ministry in 2022 issued guidelines to prevent unnecessary hysterectomies by listing possible indications of when hysterectomy may be required and alternative clinical treatments for gynaecological issues.
• Government recommended setting up district, State-level and national hysterectomy monitoring committees which to collect data on age, mortality, and occupations, among other details.
• The government also proposed a grievance portal, monitored by the National Hysterectomy Monitoring Committee, for hysterectomy beneficiaries.
• Guidelines emphasise that authorities should report hysterectomies conducted for women less than 40 years of age and incorporate the reason for hysterectomy into the existing screening checklist.

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana:

• The government’s flagship health insurance programme Ayushman Bharat Pradhan Mantri Jan Arogya Yojana provides health cover of ₹5 lakhs for 1,949 procedures including hysterectomies.
• The government has authorised 45,434 hospitals to conduct these operations and also developed two standard treatment guidelines for hysterectomy-related procedures.
• These guidelines, developed by the Union Health Ministry and the Indian Council for Medical Research (ICMR) in consultation with health experts, explicitly state that the procedure should be “considered only when childbearing is completed and rarely in younger patients”.

Violation of international conventions:

• Unnecessary hysterectomies violate international conventions to which India is a signatory.
• These include the International Covenant on Economic, Social and Cultural Rights (which recognises people’s right to control their health and body, including reproductive and sexual freedom), the Convention on the Elimination of All Forms of Discrimination Against Women and the International Covenant on Civil and Political Rights.

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana:

2. FOUCAULT PENDULUM

TAGS: PRELIMS PERSPECTIVE

CONTEXT: One of the features of the new Parliament building in New Delhi, is a Foucault pendulum suspended from its ‘Constitutional Gallery’ area.

EXPLANATION:

• The original Foucault’s pendulum, named after 19th century French scientist Leon Foucault, is a simple experiment to demonstrate the earth’s rotation.
• When Foucault carried out this experiment for the public in 1851, it was the first direct visual evidence of the fact that the earth rotates on its axis.

How it works?

• The pendulum consists of a heavy bob suspended at the end of a long, strong wire from a fixed point in the ceiling.
• As the pendulum swings, the imaginary surface across which the wire and the bob swipe is called the plane of the swing.
• A Foucault pendulum is not a simple matter of setting up a pendulum with large parts. It must be designed, installed, and set swinging in such a way that the bob’s motion is influenced to the extent possible only by gravity.
• If the pendulum is installed at the North Pole, the pendulum will basically be swinging as the earth rotates ‘below’. But someone standing on the earth’s surface doesn’t notice the planet’s rotation without e.g. looking up at the sky from time to time; instead, to them, the plane of the swing will seem to rotate by a full circle as the earth completes one rotation.
• If the pendulum is installed over the equator, the plane won’t appear to shift at all because it will be rotating along with the earth. On any other latitude, the plane will shift through 360º in “one sidereal day divided by the sine of the latitude of its location”.

How was the pendulum made for Parliament?

• It has been designed and installed by the National Council of Science Museums (NCSM), Kolkata.
• The Central Research & Training Laboratory (CRTL) is the R&D unit of NCSM, which in turn, functions under the aegis of the Ministry of Culture.
• The piece, made using gunmetal, has been fixed with an electromagnetic coil to ensure hassle-free movement.
• On the symbolism of the pendulum and its prime place in the hallowed building it demonstrates the Article 51A of the Constitution enshrines every citizen “to develop the scientific temper, humanism, and the spirit of inquiry and reform”.

3. SHENZHOU-16

TAGS: PRELIMS PERSPECTIVE

CONTEXT: China launched a spacecraft carrying three astronauts, including its first civilian, to its Tiangong space station on May 30. This is the China’s fifth manned mission to a fully functional space station since 2021.According to state media, the spacecraft, the Shenzhou-16, was launched atop a Long March-2F rocket from the Jiuquan Satellite Launch Centre in the Gobi Desert in northwest China at 9:31 am.

EXPLANATION:

• The crew of Shenzhou-16 includes Jing Haipeng as the leading commander on the mission, as well as Zhu Yangzhu and Gui Haichao, the first Chinese civilian to travel to space. The three astronauts will replace the crew of Shenzhou-15 aboard the Tiangong space station, who have been there since November last year.
• The new crew will stay there for the next five months and will carry out “large-scale in-orbit tests and experiments in various fields as planned. They are expected to make high-level scientific achievements in the study of novel quantum phenomena, high-precision space time-frequency systems, the verification of general relativity, and the origin of life.

What is the Tiangong space station?

• It is operated by China Manned Space Agency (CMSA), the Tiangong space station was built by China after the USA barred NASA from working with the Asian country, citing a high risk of espionage.
• The permanently inhabited space station’s first module entered orbit in 2021 and two more modules were added to it in the following years.
• The Tiangong space station, expected to become the sole in-orbit outpost for scientific research after the end of operations for the International Space Station in 2030, is China’s ambitious project to achieve its space dreams.

International Space Station:

• The International Space Station is a large spacecraft in orbit around Earth. It serves as a home where crews of astronauts and cosmonauts live.
• The first piece of the International Space Station was launched in November 1998. A Russian rocket launched the Russian Zarya (zar EE uh) control module.
• It orbits Earth at an average altitude of approximately 250 miles.
• It travels at 17,500 mph. This means it orbits Earth every 90 minutes.
• NASA is using the space station to learn more about living and working in space.

4. DIGITAL PAYMENT

TAGS: GS 3: ECONOMY

CONTEXT: Reserve Bank of India (RBI) has conceptualised a lightweight payment and settlements system, which it is calling a “bunker” equivalent of digital payments, which can be operated from anywhere by a bare minimum staff in exigencies such as natural calamities or war.

EXPLANATION:

Objective:

• Such a lightweight and portable payment system could ensure near zero downtime of the payment and settlement system in the country.
• It will keep the liquidity pipeline of the economy alive and intact by facilitating uninterrupted functioning of essential payment services like bulk payments, interbank payments and provision of cash to participant institutions.
• The system is expected to process transactions that are critical to ensure the stability of the economy, including government and market related transactions.
• Having such a resilient system is also likely to act as a bunker equivalent in payment systems and thereby enhance public confidence in digital payments and financial market infrastructure even during extreme conditions.

How will it work?

• Infrastructure for this system will be independent of the technologies that underlie the existing systems of payments such as UPI, NEFT, and RTGS.
• The central bank has not offered a timeline for the launch of this payments system yet.
• In its Annual Report for 2022-23 published on May 30, RBI says that the lightweight and portable payment system is expected to operate on minimalistic hardware and software and would be made active only on a “need basis”.

How will the lightweight system be different from UPI?

• According to the RBI, existing conventional payments systems such as RTGS, NEFT, and UPI are designed to handle large volumes of transactions while ensuring sustained availability. As a result, they are dependent on complex wired networks backed by advanced IT infrastructure.
• However, catastrophic events like natural calamities and war have the potential to render these payment systems temporarily unavailable by disrupting the underlying information and communication infrastructure. Therefore, this new system is designed to be prepared to face such extreme and volatile situations.

Unified Payments Interface(UPI):

• Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.
• It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.

NEFT and RTGS:

5. EMISSION FROM AVIATION SECTOR

TAGS: PRELIMS PERSPECTIVE

CONTEXT: Last week, France announced a ban on all short-haul domestic flights. A month earlier, the Schiphol airport in Amsterdam, one of the busiest in Europe, banned private jets and small business planes. There is a growing clamour in Europe for a bigger crackdown on private aviation sector.

EXPLANATION:

• As the world continues to fall behind in the race against time to curb global warming, desperate and non-conventional measures seem to be beginning to kick in.
• Aviation is a relatively small contributor to global greenhouse gas emissions and attempts to curtail these have not been very fruitful till now.
• Air transport, globally, accounts for just about 2 per cent of global carbon dioxide emissions every year, and less than two per cent of greenhouse gas emissions.
• Though the airline industry’s contribution to the overall greenhouse gas emissions has been rather modest, it is still considered a big worry, mainly due to two reasons it is generated by a very small fraction of global population, and it is projected to grow at a very fast pace.
• Also, airplanes produce non-CO2 emissions as well, and their impact on global warming is equally significant. According to the UN Climate Change, if the non-CO2 emissions, like water vapour, are also accounted for, the airline industry would be responsible for causing almost five per cent of historical global warming.
• Emissions from international aviation falls in a grey area. The emissions from planes flying within the boundaries of a country are attributed to that country. But emissions from airlines making international flights are not attributable to any country.
• Along with international shipping, international aviation forms a separate class of emissions those from bunker fuel. It also means that no country has any responsibility to curtail these emissions. These are not covered under the Paris Agreement.

Offset mechanism:

• In 2016, the International Civil Aviation Organisation (ICAO) put in place an offset mechanism to ensure that any increase in emissions over 2020 levelsis compensated for by the airline industry through investment in carbon saving projects elsewhere.
• It is called Carbon Offsetting and Reduction Scheme for International Aviation, or CORSIA, the offset plan is supposed to run from 2021 to 2035.
• Reducing aviation emissions through other means has not proved to be easy. Unlike road or rail travel, aviation does not have viable technology alternatives for shifting to cleaner fuels. Biofuels have been tried and so have hydrogen fuel cells. Solar powered planes have also made trips. But use of these alternative fuels for flying large commercial airliners is still some distance away.

International Civil Aviation Organization (ICAO)

• It was created in 1944 to promote the safe and orderly development of international civil aviation throughout the world.
• It is a specialized agency of the United Nations.
• It sets standards and regulations necessary for aviation safety, security and facilitation, efficiency, economic development of air transport as well as to improve the environmental performance of aviation.
• The organization serves as the forum for cooperation in all fields of civil aviation among its 192 Member States.

Carbon Offsetting and Reduction Scheme for International Aviation, or CORSIA:

• CORSIA is the first global market-based measure for any sector and represents a cooperative approach that moves away from a “patchwork” of national or regional regulatory initiatives.
• It offers a harmonized way to reduce emissions from international aviation, minimizing market distortion, while respecting the special circumstances and respective capabilities of ICAO Member States.
• CORSIA complements the other elements of the basket of measures by offsetting the amount of CO2 emissions that cannot be reduced through the use of technological improvements, operational improvements, and sustainable aviation fuels with emissions units from the carbon market.
• CORSIA is considered a breakthrough, but it is not very ambitious. It only seeks to offset emissions that are over and above 2020 levels. It does not deal with total emissions.

1. ‘SENGOL’ TO BE INSTALLED IN THE NEW PARLIAMENT

TAGS: GS 1: ART AND CULTURE

THE CONTEXT: Prime Minister will install the ‘Sengol’, a historical sceptre from Tamil Nadu, in the new Parliament building which is scheduled to be inaugurated in May, 2023. The ‘Sengol’ was received by Independent India’s first Prime Minister from Lord Mountbatten to symbolically represent the transfer of power from the British and was later kept in a museum in Allahabad.

EXPLANATION:

Background:

• Rajagopalachari suggested that Ceremony that should be followed to symbolise the transfer of power from British to Indian hands should follow Chola model where the transfer of power from one king to another was sanctified and blessed by a high ruler.
• The symbol used was the handover of ‘sengol’ or sceptre from one king to his successor.
• It was the head of ancient Shaivite math Thiruvavaduthurai Aadeenam math that presented the Sengol to Indian Prime Minister in 1947.
• A golden sceptre was crafted by Vummidi Bangaru Chetty, a famous jeweller in the Madras Presidency.

Highlights of inauguration of new Parliament building:

• A group of musicians playing Tamil Nadu’s traditional instrument, the Nadaswaram, would lead the procession.
• Additionally, “Adheenams,” or priests from Shaivite mutts in Tamil Nadu, will be present in the Lok Sabha’s Well.
• The “Oduvars,” or Tamil temple singers, will lyrically recite the “Kolaru Padhigam” in the background as the Nadaswaram musicians enchant with their soulful music.
• The Sengol will be presented to the prime minister after this revered ceremony and placed in a glass case next to the Speaker’s seat in the House.

Sengol and its significance:

• It is derived from the Tamil word “Semmai”, meaning “Righteousness”.
• The sceptre measures five feet in length and has a ‘Nandi’ bull on top, symbolising justice.
• “Tamil kings had this sengol (a Tamil word for sceptre), which is a symbol of justice and good governance.
• The two great epics Silapathikaram and Manimekalai records the significance of a sengo

Oduvars or Tamil temple singers:

• The tradition of Oduvars is over 1,000 years old and the King Raja Raja Chola I set up grants for their services at temples.
• Rituals in Saivaite temples are considered incomplete without their singing Thirumuraigal: Thevaram and Thiruvachagam.

Nadaswaram

• Nadaswaram, sometimes known as nagaswaram, nadhaswaram, or nathaswaram is a prominent South Indian classical musical instrument resembling the western oboe.
• The Nadaswaram’s body is traditionally constructed of aacha tree, although bamboo, sandalwood, copper, bronze, ebony, and ivory are also used nowadays.
• It is played at practically all Hindu weddings and temples in the South Indian tradition and is regarded as particularly auspiciou

2. FORUM FOR INDIA-PACIFIC ISLANDS COOPERATION (FIPIC)

TAGS: GS 2: INTERNATIONAL RELATIONS

THE CONTEXT: Indian PM landed in the capital city of Port Moresby for his first visit to the country, and also is the first by any Indian prime minister, for the Forum for India-Pacific Islands Cooperation (FIPIC) summit, 2023.

EXPLANATION:

Forum for India-Pacific Islands Cooperation (FIPIC):

• FIPIC was launched by Indian Minsitry in Fiji in November 2014.
• FIPIC includes 14 island countries – Cook Islands, Fiji, Kiribati, Marshall Islands, Micronesia, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu – that are located in the Pacific Ocean, to the northeast of Australia.

Idea behind FIPIC:

• Despite their relatively small size and considerable distance from India, many of these islands have large exclusive economic zones (EEZs).
• India’s larger focus is on the Indian Ocean where it has sought to play a major role and protect its strategic and commercial interests.
• FIPIC initiative then marks a serious effort to expand India’s engagement in the Pacific region as well.

Exclusive Economic Zones (EEZs) is the distance up to which a coastal nation has jurisdiction over the ocean, including both living and non-living resources. It generally goes to 200 nautical miles or 230 miles (around 370 km) beyond a nation’s territorial sea.

1^st FIPIC Summit:

• FIPIC-I took place in 2014 at Suva, Fiji’s capital city.
• India announced various development assistance initiatives and other cooperation projects in areas of climate change, trade, economy, telemedicine and teleeducation, IT, grants for community development projects, etc.

2^nd FIPIC Summit:

• FIPIC-II took place in 2015 at Jaipur City, India.
• India approached the event from a large diplomatic perspective, calling for a “dedicated seat for Small Island Developing States in an expanded and reformed UN Security Council in both categories”.
• Seek for concrete and effective outcome on climate change conference at COP 21 in Paris t

India-Pacific Small Island Developing States (PSIDS) Leaders’ Meeting:

• It was held in 2019 comprising delegations of 12 out of the 14 Pacific Islands countries in New York on the sidelines of the 74th UN General Assembly.
• The Indian government then announced an allocation of $12 million grant ($1 million to each PSIDS) towards implementation of high-impact developmental projects in the area of their choice.

Initiatives by India at 3^rd FIPIC summit 2023:

• Establishment of a super-specialty cardiology hospital in Fiji.
• Sea ambulances will be provided to all the 14 Pacific island countries.
• Similar to Jaipur Foot Camp, 2022 which was conducted in Fiji where prosthetic limbs were provided free of cost to people , similar camp will be set up in Papua New guinea this year and starting from 2024, two such camps will be organised every year in the Pacific island countries.

Small Island Developing States:

• Small Island Developing States (SIDS) are a distinct group of 37 UN Member States and 20 Non-UN Members/Associate Members of United Nations regional commissions that face unique social, economic and environmental vulnerabilities.
• The three geographical regions in which SIDS are located are: the Caribbean, the Pacific, and the Atlantic, Indian Ocean and South China Sea (AIS).
• SIDS were recognized as a special case both for their environment and development at the 1992 United Nations Conference on Environment and Development held in Rio de Janeiro, Brazil.
• The aggregate population of all the SIDS is 65 million, slightly less than 1% of the world’s population, yet this group faces unique social, economic, and environmental challenges.

3. NEW TAX RULES FOR ONLINE GAMING

TAGS: GS 3: ECONOMY

THE CONTEXT: The Central Board of Direct Taxes (CBDT) has come out with guidelines for Tax Deducted at Source (TDS) for online gaming platforms, defining a threshold of Rs 100 for deducting tax for winnings from online gaming. Bonus, referral bonus, and incentives will also be counted towards the taxable winnings on an online gaming platform.

EXPLANATION:

New guidelines for TDS for online gaming:

• Online gaming platforms will not be required to deduct tax at the source for a player if the net winning does not exceed Rs 100.
• CBDT circular also said that bonus, referral bonus, incentives etc are given by the online gaming company to the intermediate user and they are to be considered as taxable deposit under Rule 133 of the Income-tax Act.
• CBDTsaid that in order to remove the difficulty in deducting tax at source under section 194BA of the Act for “insignificant withdrawal”, it is clarified that tax may not be deducted on withdrawal on the satisfaction of all of the following conditions:

1. net winnings comprised in the amount withdrawn does not exceed Rs 100 in a month
2. tax not deducted on account of this concession is deducted at a time when the net winnings comprised in withdrawal exceeds Rs 100 in the same month or subsequent month or if there is no such withdrawal, at the end of the financial year
3. the deductor undertakes the responsibility of paying the difference if the balance in the user account at the time of tax deduction under section 194BA of the Act is not sufficient to discharge the tax deduction liability calculated in accordance with Rule 133

Online gaming regulations:

• The Ministry of Electronics and Information Technology (MEITY) notified as nodal ministry for all matters pertaining to online gaming industry and e-sports
• MEITY notified amendment to the Existing IT Rules 2021 i.e. the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023 (“Amended Rules”) with aim to regulate online gaming.
• Key Highlights of the Amended Rules are as follows:

1. self-regulatory structure for the online gaming industry
2. introduction of new definitions like ‘online games’, ‘online real money games’, ‘permissible online games’, and ‘permissible online real money games’
3. Introduced the concept of “Intermediaries”e. entities that store or transmit data on behalf of other persons and include telecom and internet service providers, online marketplaces, search engines and social media sites
4. With an aim to track such transactions, the government had inserted a new section 194BA in the Income-tax Act, 1961 through Finance Act 2023, which mandated online gaming platforms to deduct income-tax on the net winnings in the person’s user account.
5. Tax is required to be deducted at the time of withdrawal as well as at the end of the financial year. As per section 194BA, TDS will be applicable at the rate of 30 per cent on the net winnings from any online gaming.

Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023:

• Social media intermediaries, with registered users in India above a notified threshold, have been classified as significant social media intermediaries (SSMIs).  SSMIs are required to observe certain additional due diligence such as appointing certain personnel for compliance, enabling identification of the first originator of the information on its platform under certain conditions, and deploying technology-based measures on a best-effort basis to identify certain types of content.
• The Rules prescribe a framework for the regulation of content by online publishers of news and current affairs content, and curated audio-visual content.
• All intermediaries are required to provide a grievance redressal mechanism for resolving complaints from users or victims.  A three-tier grievance redressal mechanism with varying levels of self-regulation has been prescribed for publishers.

Central Board of Direct Taxes (CBDT)

• The Central Board of Direct Taxes is a statutory authority functioning under the Central Board of Revenue Act, 1963.
• It comes under Department of Revenue under the Ministry of Finance.
• The officials of the Board in their ex-officio capacity also function as a Division of the Ministry dealing with matters relating to levy and collection of direct taxes.
• The Central Board of Direct Taxes consists of a Chairman and following six Members:

1.  Chairman
2.  Member (Income Tax & Revenue)
3.  Member (Legislation & Systems)
4.  Member (Administration & Faceless Scheme)
5.  Member (Investigation)
6.  Member (Tax Payer Services)
7.  Member (Audit & Judicial)

4. CARBON BORDER ADJUSTMENT MECHANISM (CBAM)

TAGS: GS 3: ENVIRONMENT

THE CONTEXT: Co-legislators at the European Commission signed the Carbon Border Adjustment Mechanism (CBAM).

EXPLANATION:

Carbon Border Adjustment Mechanism (CBAM):

• EU’s Carbon Border Adjustment Mechanism (CBAM) is landmark tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries.
• The gradual introduction of the CBAM is aligned with the phase-out of the allocation of free allowances under the EU Emissions Trading System (ETS) to support the decarbonisation of EU industry.
• CBAM will ensure the carbon price of imports is equivalent to the carbon price of domestic production by confirming that a price has been paid for the embedded carbon emissions generated in the production of certain goods imported into the EU.
• The CBAM is designed to be compatible with WTO-rules.

Key Features:

• Its primary objective is to avert ‘carbon leakage’ by subjecting the import of certain groups of products from 3rd (non-EU and non-EFTA) countries to a carbon levy linked to the carbon price payable under the EU Emissions Trading System (ETS) when the same goods are produced within the EU alongside encouraging producers in non-EU countries to green their manufacturing processes.
• It refers to a phenomenon where a EU manufacturer moves carbon-intensive production to countries outside the region with less stringent climate policies.
• It replace EU-manufactured products with more carbon-intensive imports.
• The CBAM will initially apply to imports of certain goods and selected precursors whose production is carbon intensive and at most significant risk of carbon leakage: cement, iron and steel, aluminium, fertilisers, electricity and hydrogen.
• Further scope extensions to include additional products (such as chemicals and polymers) are to be determined by 2026, and the full inclusion of all EU ETS products is planned by 2030.
• CBAM will enter into force in its transitional phase as of 1 October 2023 during which EU importers must submit quarterly CBAM-reports, stating their imports of the CBAM products, as well as the emissions ‘embedded’ in their imported products. Such emissions are proposed to include direct and indirect emissions occurring during the production process of the imported goods.
• Once the permanent system enters into force on 1 January 2026, importers will need to declare each year the quantity of goods imported into the EU in the preceding year and their embedded GHG.
• They will then surrender the corresponding number of CBAM certificates. The price of the certificates will be calculated depending on the weekly average auction price of EU ETS allowances expressed in €/tonne of CO2 emitted. The phasing-out of free allocation under the EU ETS will take place in parallel with the phasing-in of CBAM in the period 2026-2034.
• Moreover, it will ensure a level playing field between imports and EU products.
• This would also form part of the continent’s broader European Green Deal which endeavours to achieve 55% reduction in carbon emissions compared to 1990 levels by 2030 and become a climate neutral continent by 205

EU Emissions Trading System (ETS):

• It also aimed at supporting the decarbonisation of the region’s industries.
• The ETS had set a cap on the amount of greenhouse gas emissions that can be released from industrial installations in certain sectors.
• Allowances were to be bought on the open decentralised ETS trading market, however, certain allowances were given out for free to prevent carbon leakage.
• Though effective in addressing the issue of leakage, EU concluded it dampened the incentive to invest in greener production at home and abroad because of the tendency to rely on free allowances to meet operational requirements and obligations.

5. SUPER COMPUTER

TAGS: GS-3: SCIENCE AND TECHNOLOGY

THE CONTEXT: Ministry of Earth Sciences (MoES) stated that India is set to dramatically scale up its super-computing prowess and install an 18-petaflop system over the course of the year 2023.

EXPLANATION:

What is Supercomputer?

• Supercomputer is any of a class of extremely powerful computers. The term is commonly applied to the fastest high-performance systems available at any given time.
• Such computers have been used primarily for scientific and engineering work requiring exceedingly high-speed computations.
• Common applications for supercomputers include testing mathematical models for complex physical phenomena or designs, such as climate and weather, evolution of the cosmos, nuclear weapons and reactors, new chemical compounds (especially for pharmaceutical purposes), and cryptology.

Supercomputers in India:

• Currently India’s hosts most powerful, civilian supercomputers Pratyush and Mihir with a combined capacity of 6.8 petaflops are housed at the Indian Institute of Tropical Meteorology (IITM), Pune, and the National Centre for Medium Range Weather Forecasting (NCMRWF), Noida, respectively.
• They were made operational in 2018 at an investment of ₹438 crore. Both these organisations are affiliated to the Ministry of Earth Sciences(MoES).
• Pratyush is the fourth fastest supercomputer in the world dedicated for weather and climate research, and follows machines in Japan, USA and the United Kingdom.

Features of Upcoming Supercomputers:

• The new supercomputers, yet to be named, are imported from French corporation, ATOS an information technology service and consulting company.
• The new supercomputers too will be housed at the IITM and NCMRWF.
• It aims to accelerate processing power to such a degree that greatly eases complex mathematical calculations required, for among other things, and forecasting weather over the next few days.
• The goal is eventually to be able to represent an area by 1 km-square grids and that can be used to warn of cloudburst and such rapidly evolving weather systems.

Supercomputer around world:

• The fastest high-performance computing system in the world is currently the Frontier-Cray system at Oakridge National Laboratory, United States. This has a peak speed of 1 exa-flop (or about 1,000 petaflops). The top 10 other systems, based on speed, range from about 400 petaflops to 60 petaflops.

FLOPS  (Floating-Point Operations Per Second)

• Floating-point according to IBM is a method of encoding real numbers within the limits of finite precision available on computers.
• Using floating-point encoding, extremely long numbers can be handled relatively easily.
• Flops (floating point operations per second) are an indicator of computers processing speed and a petaflop refers to a 1,000 trillion flops.

1. COMMON NATIONAL MEDICAL REGISTER

TAGS: GS 2: HEALTH ISSUES

THE CONTEXT: All registered medical practitioners across the country will now be covered under a common National Medical Register with each of them allotted a unique identification number, as per a gazette notification recently released by the National Medical Commission (NMC) titled “Registration of Medical Practitioners and License to Practice Medicine Regulations, 2023”.

EXPLANATION:

• A common medical register will be maintained and updated by the NMC for all the registered medical practitioners of the country. The register will be maintained and updated by the Ethics and Medical Registration Board (EMRB).
• Indian government has made it mandatory for all registered doctors to get a Unique Identification Number (UID) from the National Medical Commission (NMC) to make it easier for people to get the access of doctors’ detail.
• National register will contain all the entries of the registered medical practitioners of all State registers maintained by the various State Medical Councils.
• This register will be made public on the official NMC website and will contain relevant information about a medical practitioner including registration number, name, father’s name, date of registration, place of working (name of hospital/institute), medical qualification including additional medical qualification, speciality, year of passing, university, name of the institute/university where qualification was obtained.
• The notification explains that until such time that these regulations and appropriate sections are in force, licence to practise and prevailing system of registration shall continue.
• The NMC has also laid down the process of registration of additional qualifications, renewal of licence to practise medicine, transfer of licence to practise, removal and restoration of registration, transitory provisions, denial of licence to practise, among others.
• The licence to practice medicine issued to a registered medical practitioner will be valid for a period of five years after which the medical practitioner will have to renew the licencing by making an app application to the State Medical Council as per Registration of Medical Practitioners and Licence to Practice Medicine Regulations, 2023″.
• The application for renewal of licence may be made before three month of expiration of the validity of licence.
• On denial of licence to practise, the notification says that if the application of a candidate for grant of licence to practise /for renewal is rejected by the State Medical Council on any ground, the applicant concerned may file an appeal to the Ethics and Medical Registration Board (EMRB) against the decision of the State medical Council, within 30 days of receipt of such decision.
• The EMRB shall examine the appeal and in case the first appeal is rejected by the Board, the applicant may file a second appeal to the NMC, within a period of 60 days from receipt of communication from the EMRB. “The decision of the NMC shall be final,” said the notification.
• The notification also makes the passing of National Exit Test (NEXT) compulsory for both Indian and foreign medical graduates for the purpose of registration with the National Medical Register.

National Medical Register:

• National Medical Register is a central database maintained and updated by the National Medical Commission (NMC).
• It contains all the details about the doctor registered with the website. Government has made it mandatory for all doctors to register themselves with NMC.
• Database includes the information of all the doctors registered with State Medical Councils across India till 2021.

National Medical Commission:

• The National Medical Commission (NMC) has been constituted by an act of Parliament known as National Medical Commission Act, 2019 by replacing the Medical Council of India (MCI).
• The Aim of the National Medical Commission are:

1. improve access to quality and affordable medical education
2. ensure availability of adequate and high-quality medical professionals in all parts of the country
3. promote equitable and universal healthcare that encourages community health perspective and makes services of medical professionals accessible to all the citizens
4. encourages medical professionals to adopt latest medical research in their work and to contribute to research
5. objectively assess medical institutions periodically in a transparent manner
6. maintain a medical register for India
7. enforce high ethical standards in all aspects of medical services
8. have an effective grievance redressal mechanism

2. PRODUCTION LINKED INCENTIVE (PLI) SCHEME

TAGS: GS 3: ECONOMY

THE CONTEXT: The Union Cabinet has approved the second edition of the production linked incentive (PLI 2.0) scheme for IT hardware with a ₹17,000-crore outlay.

EXPLANATION:

PRODUCTION LINKED INCENTIVE (PLI) SCHEME:

• The scheme was first introduced in March 2020 and in 2021-2022 Budget an outlay of Rs 1.97 lakh crore was announced for the PLI scheme.
• The scheme is aimed at boosting domestic manufacturing under the Atmanirbhar Bharat initiative of the government.
• PLIs are essentially financial incentives for businesses to augment their output. They could come in the form of tax rebates, lowered import and export duties or easier land acquisition norms.
• The 14 sectors are mobile manufacturing, manufacturing of medical devices, automobiles and auto components, pharmaceuticals, drugs, specialty steel, telecom & networking products, electronic products, white goods (ACs and LEDs), food products, textile products, solar PV modules, advanced chemistry cell (ACC) battery, and drones and drone components.
• It aims to make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global supply chain.

Implementation of PLI Scheme:

• The PLI scheme will be implemented by the concerned ministries/departments and will be within the overall financial limits prescribed.
• The final proposals of PLI for individual sectors will be appraised by the Expenditure Finance Committee (EFC) and approved by the Cabinet.
• The incentive amount offered varies across sectorsand the savings generated from PLI of one sector can be appropriated towards other sector after approval from

Empowered Group of Secretaries.

• Any new sector for PLI will require fresh approval of the Cabinet.

Sectors under PLI Scheme:

• Mobile Manufacturing and Specified Electronic Components: It comes under MEITY and it aims for Large Scale Mobile and Electronics Manufacturing and proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain including mobile phones, electronic components and ATMP units.
• Manufacturing of Medical Devices: It comes under Department of Pharmaceuticals. It aims to strengthen India’s manufacturing capacity in the pharmaceutical sector by increasing investment and production. Department laid special emphasis on promoting domestic manufacturing of medical equipment and strengthening the pharmaceutical industry.
• Automobiles and auto components: The automotive industry is a major economic contributor in India. The PLI scheme will make the Indian automotive Industry more competitive and will enhance globalization of the Indian automotive sector.
• Pharmaceutical industry: The Indian pharmaceutical industry is the third largest in the world by volume and 14th largest in terms of value. It contributes 3.5% of the total drugs and medicines exported globally. India possesses the complete ecosystem for development and manufacturing of pharmaceuticals and a robust ecosystem of allied industries. The PLI scheme will incentivize the global and domestic players to engage in high value production.
• Drugs: With an objective to attain self-reliance and reduce import dependence in these critical Bulk Drugs – Key Starting Materials (KSMs)/ Drug Intermediates and Active Pharmaceutical Ingredients (APIs) in the country, the Department of Pharmaceuticals had launched a Production Linked Incentive (PLI) Scheme for promotion of their domestic manufacturing by setting up greenfield plants.
• Specialty Steel: It is a strategically important industry and India is the world’s second largest steel producer in the world. It is a net exporter of finished steel and has the potential to become a champion in certain grades of steel. A PLI scheme in Specialty Steel will help in enhancing manufacturing capabilities for value added steel leading to increase in total exports.
• Telecom equipment: It forms a critical and strategic element of building a secured telecom infrastructure and India aspires to become a major original equipment manufacturer of telecom and networking products. The PLI scheme is expected to attract large investments from global players and help domestic companies seize the emerging opportunities and become big players in the export market.
• Electronic products: India is expected to have a USD 1 trillion digital economy by 2025. Additionally, the Government’s push for data localization, Internet of Things market in India, projects such as Smart City and Digital India are expected to increase the demand for electronic products. The PLI scheme will boost the production of electronic products in India.
• White goods (ACs and LEDs): White goods (air conditioners and LEDs) have very high potential of domestic value addition and making these products globally competitive. A PLI scheme for the sector will lead to more domestic manufacturing, generation of jobs and increased exports.
• Food products: The growth of the processed food industry leads to better price for farmers and reduces high levels of wastage. Specific product lines having high growth potential and capabilities to generate medium- to large-scale employment have been identified for providing support through PLI scheme.
• Textile products: The Indian textile industry is one of the largest in the world and has a share of 5% of global exports in textiles and apparel. But India’s share in the manmade fibre (MMF) segment is low in contrast to the global consumption pattern, which is majorly in this segment. The PLI scheme will attract large investment in the sector to further boost domestic manufacturing, especially in the MMF segment and technical textiles.
• Advanced chemistry cell (ACC) battery: ACC battery manufacturing represents one of the largest economic opportunities of the twenty-first century for several global growth sectors, such as consumer electronics, electric vehicles, and renewable energy. The PLI scheme for ACC battery will incentivize large domestic and international players in establishing a competitive ACC battery set-up in the country.
• Drones and drone components: Drones offer tremendous benefits to almost all sectors of the economy as agriculture, mining, infrastructure, surveillance etc. Given its traditional strengths, India has the potential of becoming a global drone hub by 2030. The PLI scheme comes as a follow-through of the liberalised Drone Rules, 2021released by the Central Government on 25 August 2021.  The PLI scheme and new drone rules are intended to catalyse super-normal growth in the upcoming drone sectors.
• Solar PV modules: Large imports of solar PV panels pose risks in supply-chain resilience and have strategic security challenges considering the electronic (hackable) nature of the value chain. A focused PLI scheme for solar PV modules will incentivize domestic and global players to build large-scale solar PV capacity in India and help India leapfrog in capturing the global value chains for solar PV manufacturing.

3. UNIQUE ECONOMIC OFFENDER CODE

TAGS: GS 3: ECONOMY

THE CONTEXT: Government aims to create a unique code for each individual or company accused of economic offences for the identification of economic offenders.

EXPLANATION:

• The ‘Unique Economic Offender Code’ will be alpha-numeric which will be PAN or Aadhaar-based for companies and individuals to tag all the cases of economic offences against them and have a 360-degree profile.
• A database of about 2.5 lakh economic offenders has been setup by the Central Economic Intelligence Bureau under the finance ministry.
• By creating these unique codes, government aims to quickly launch a multi-agency probe against the offenders against the current practice of waiting for one agency to complete its probe and file chargesheet or prosecution complaint before the same is shared with others for further investigation.
• The code will be system-generated and will emerge once police, any central intelligence or enforcement agency feeds data into the under-construction central repository of NEOR -National Economic Offence Records. This would mean that will be easily identified with a Unique Economic Offender Code.

National Economic Offence Records (NEOR):

• It is a central repository of all economic offences that will share data related to each economic offender with all central and state intelligence and enforcement agencies.
• It is being created with a Rs 40 crore budget.
• The task of its completion has been assigned to the Central Economic Intelligence Bureau with the help of the National Informatics Centre.

Financial Action Task Force (FATF):

• Financial Action Task Force (FATF) formed in 1989 in G7 Summit in Paris is the global money laundering and terrorist financing watchdog.
• It originally included the G7 countries, the European Commission and eight other countries.
• India becameObserver at FATF in the year 2006 and in 2010 India admitted as 34th Country Member of FATF.
• There are currently 39 membersof the FATF; 37 jurisdictions and 2 regional organisations (the Gulf Cooperation Council and the European Commission)
• It sets international standards, and to develop and promote policies, both at national and international levels, to combat money laundering and the financing of terrorism.
• The FATF membership is currently made up of 32 countries and territories and two regional organizations. Eight regional bodies similar to FATF, known as FATF Style Regional Bodies, have also developed.

4. AADHAAR-enabled PAYMENT SYSTEM (AePS)

TAGS: PRELIMS PERSPECTIVE

THE CONTEXT: Gaps in Aadhaar-enabled Payment System (AePS) is being abused by cybercriminals.

Scammers are reportedly using leaked biometric details, bypassing the need for OTPs, to siphon money from users’ bank accounts. A quick search on Google reveals that similar incidents have been reported in many different parts of the country.

EXPLANATION:

• Aadhaar-enabled Payment Services (AePS) is a bank-led model which allows online financial transactions at Point-of-Sale (PoS) and Micro ATMs through the business correspondent of any bank using Aadhaar authentication.
• Banking Services Offered by AePS includes cash deposit, cash withdrawal, balance inquiry, mini statement, Aadhaar to Aadhaar fund transfer, authentication, and BHIM Aadhaar pay.
• The model removes the need for OTPs, bank account details, and other financial details. It allows fund transfers using only the bank name, Aadhaar number, and fingerprint captured during Aadhaar enrolment, according to the National Payments Corporation of India (NCPI).

The only inputs required for a customer to do a transaction under this scenario are:

• Bank Name
• Aadhaar Number
• Fingerprint captured during enrollment.

Objectives:

• To empower a bank customer to use Aadhaar as his/her identity to access his/ her respective Aadhaar enabled bank account and perform basic banking transactions like cash deposit, cash withdrawal, Intrabank or interbank fund transfer, balance enquiry and obtain a mini statement through a Business Correspondent
• To sub-serve the goal of Government of India (GoI) and Reserve Bank of India (RBI) in furthering Financial Inclusion.
• To sub-serve the goal of RBI in electronification of retail payments.
• To enable banks to route the Aadhaar initiated interbank transactions through a central switching and clearing agency.
• To facilitate disbursements of Government entitlements like NREGA, Social Security pension, Handicapped Old Age Pension etc. of any Central or State Government bodies, using Aadhaar and authentication thereof as supported by UIDAI.
• To facilitate inter-operability across banks in a safe and secured manner.
• To build the foundation for a full range of Aadhaar enabled Banking services.

Are AePS transactions enabled by default?

• Neither Unique Identification Authority of India (UIDA)I nor NPCI mentions clearly whether AePS is enabled by default.
• Cashless India, a website managed and run by MeitY, says the service does not require any activation, with the only requirement being that the user’s bank account should be linked with their Aadhaar number.
• Users who wish to receive any benefit or subsidy under schemes notified under section 7 of the Aadhaar Act, have to mandatorily submit their Aadhaar number to the banking service provider, according to UIDAI.
• Aadhaar is also the preferred method of KYC for banking institutions, thus enabling AePS by default for most bank account holders.

How to secure Aadhaar biometric information?

• The UIDAI is proposing an amendment to the Aadhaar (Sharing of Information) Regulations, 2016, which will require entities in possession of an Aadhaar number to not share details unless the Aadhaar numbers have been redacted or blacked out through appropriate means, both in print and electronic form.
• The UIDAI has also implemented a new two-factor authentication mechanism that uses a machine-learning-based security system, combining finger minutiae and finger image capture to check the liveness of a fingerprint.
• Additionally, users are also advised to ensure that they lock their Aadhaar information by visiting the UIDAI website or using the mobile app. This will ensure that their biometric information, even if compromised, cannot be used to initiate financial transactions.

5. NUTRIENT BASED SUBSIDY SCHEME

TAGS: GS 3: ECONOMY

THE CONTEXT: The Union Cabinet chaired by the Prime Minister has approved the proposal of the Department of Fertilizers for revision in Nutrient Based Subsidy (NBS) rates for various nutrients i.e. Nitrogen (N), Phosphorus (P),Potash (K) and Sulphur (S) for Rabi Season 2022-23 and approved NBS rates for Kharif Season, 2023 for Phosphatic and Potassic (P&K) fertilizers.

EXPLANATION:

• The Subsidy on P&K fertilizers is governed by Nutrient Based Subsidy Scheme.
• The Cabinet decision will have the two-fold benefit of ensuring availability of DAP and other P&K fertilizers to farmers at subsidized, affordable and reasonable prices during Kharif season and will also ensure rationalization of subsidy on P&K fertilizers.

Nutrient Based Subsidy Scheme:

Background:

• Government of India decontrolled Phosphatic and Potassic (P&K) fertilizers with effect from 25th August 1992 on the recommendations of Joint Parliamentary Committee.
• Consequent upon the decontrol, the prices of the Phosphatic & Potassic fertilizers registered a sharp increase in the market, which exercised an adverse impact on the demand and consumption of the same.
• It led to an imbalance in the usage of the nutrients of N, P & K (Nitrogen, Phosphate and Potash) and the productivity of the soil.
• A Group of Ministers (GoM) constituted to look into all aspects of the fertilizer regime, recommended that Nutrient Based Subsidy (NBS) may be introduced based on the contents of the nutrients in the subsidized fertilizers.
• Government then introduced Nutrient Based Subsidy Policy under the Department of Fertilizers, Ministry of Chemicals & Fertilizersin 2010 in continuation of the erstwhile Concession Scheme for decontrolled P & K fertilizers.

Features of the scheme:

• It aims to provide fertilizers to the farmers at subsidized prices and rationalizes the subsidy on P&K fertilizers, ensuring effective and efficient utilization of government resources.
• The MRP of urea is statutorily fixedby the Government of India and is not included in the NBS scheme and remains under price control.
• It aims to ensuring Nation’s food security, improving agricultural productivity and ensuring the balanced application of fertilizers.
• Subsidy is fixed by an inter-ministerial committee taking into account the benchmark international prices of finished fertilisers as well as raw materials.
• The subsidy is given to registered P & K fertiliser manufacturers/importers which provides these fertilisers at subsidised rates to farmers.

New Guidelines:

• NBS to be paid annually on each nutrient namely, ‘N’, ‘P’, ‘K’ and ‘S’ has been decided/announced by the Government for 2022-23.
• Distribution and movement of fertilizers along with import of finished fertilizers, fertilizer inputs and production by indigenous units continues to be monitored through the on-line web based “Integrated Fertilizer Monitoring System (iFMS)” (erstwhile FMS and mFMS).
• The fertilizer companies are required to print Maximum Retail Price (MRP) along with applicable subsidy on the fertilizer bags clearly. Any sale above the printed MRP will be punishable under the EC Act.
• Manufacturers of customized fertilizers and mixture fertilizers are eligible to source subsidized fertilizers from the manufacturers/ importers after their receipt in the districts as inputs for manufacturing customized fertilizers and mixture fertilizers for agricultural purpose. There is no separate subsidy on sale of customized fertilizers and mixture fertilizers.

1. RBI WITHDRAW 2000 NOTES FROM CIRCULATION

TAGS: GS 3: ECONOMY

THE CONTEXT: Reserve Bank of India (RBI) has decided to withdraw the Rs 2000 denomination banknotes from circulation, but existing notes will continue to be legal tender.

EXPLANATION:

• The Rs 2000 note was introduced in November 2016 under Section 24(1) of The RBI Act, 1934, primarily with the objective of meeting the currency requirement of the economy expeditiously after the legal tender status of Rs 500 and Rs 1000 notes was withdrawn.
• With the fulfilment of that objective, and once notes of other denominations were available in adequate quantities, the printing of Rs 2000 notes was stopped in 2018-19.
• This denomination is no longer commonly used for transactions besides, there is adequate stock of banknotes in other denominations to meet currency requirements.
• In pursuance of the ‘Clean Note Policy’ of the Reserve Bank of India, it has been decided to withdraw the Rs 2000 denomination banknotes from circulation.

Clean Note Policy:

• Clean Note Policy seeks to give the public good-quality currency notes and coins with better security features, while soiled notes are withdrawn out of circulation.
• The RBI had earlier decided to withdraw from circulation all banknotes issued prior to 2005 as they have fewer security features as compared to banknotes printed after 2005.
• However, the notes issued before 2005 continue to be legal tender. They have only been withdrawn from circulation in conformity with the standard international practice of not having notes of multiple series in circulation at the same time.

What is Legal tender?

• Legal tender refers to a form of currency that can be in the form of a coin or a banknote that is recognised by law as an acceptable means for settling debts or obligations.
• The Government of India issues coins under Section 6 of The Coinage Act, 2011, which are considered legal tender for making payments or settling accounts, provided that the coins are undamaged and meet the prescribed weight requirements.
• Similarly, banknotes issued by the Reserve Bank of India, such as Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500, and Rs 2000, are legal tender throughout India and can be used for making payments or settling accounts based on the amount stated on the banknote.
• These banknotes are guaranteed by the Central Government, as per the provisions outlined in sub-section (2) of Section 26 of the RBI Act, 1934. Additionally, Rs 1 notes issued by the Government of India are also recognized as legal tender.

Legal Tender status of Rs 2000:

• Rs 2000 banknote will continue to maintain its legal tender status.
• Members of the public can continue to use Rs 2000 banknotes for their transactions and also receive them in payment.

Reserve bank of India:

• The Reserve Bank of India was established in the year 1935 in accordance with the Reserve Bank of India Act, 1934. The Reserve Bank of India is the central Bank of India entrusted with the multidimensional role.
• It performs important monetary functions from issue of currency note to maintenance of monetary stability in the country.

Some Important Functions of Reserve bank of India:

1. Banker to Government: The Reserve Bank of India accepts and makes payment on behalf of Central Government. It carries out its exchange, remittance, management of public debt and other banking functions of the Central Government. The Central Government entrusts its money, remittance, exchange and banking transactions in India with the Reserve Bank of India. It deals in repo or reverse repo.
2. Right to Issue Bank note: The Reserve Bank of India has the sole right to issue bank notes in India. The banknotes are legal tender guaranteed by the Central Government. The issue of bank note is conducted by a separate department called issue department. The Central Government on the recommendation of Central Board specifies denomination of bank notes including discontinuance of bank notes. The Central Government approves design, form and material of Bank notes on consideration of recommendations of the Central Board.
3. Formulates Banking policy: The Reserve is empowered to formulate banking policy in the interest of the public or depositors banking policy in relation to advances and provide direction on the purpose of the advances, margins to be maintained in a secured advances, the maximum amount of advance may be made, the rate of interest, terms and conditions for advances or guarantees may be given.
4. Licensing Authority: The Reserve Bank of India is empowered to grant license to commence banking business in India, including the power to cancel a license granted to a banking company.
5. Banker’s Bank: The banks listed in second schedule and non schedule banks shall maintain a cash reserve ratio with the Reserve bank of India with a view to securing the monetary stability in the country. It provides loans and advances in foreign currency to scheduled Banks and to other financial institution. It purchases, sells or discount any bill of exchange or promissory note or makes a loan or advances to schedule bank.

2. RADIOMETRIC DATING

TAGS: GS 3: SCIENCE AND TECHNOLOGY

THE CONTEXT: New study shows a way to use calcium-41 the same way carbon-14 has been used in carbon-dating, but with several advantages.

EXPLANATION:

• Since its invention in 1947, carbon dating has revolutionised many fields of science by allowing scientists to estimate the age of an organic material based on how much carbon-14 it contains.
• However, carbon-14 has a half-life of 5,700 years, so the technique can’t determine the age of objects older than around 50,000 years.
• In 1979, scientists suggested using calcium-41, with a half-life of 99,400 years.
• It’s produced when cosmic rays from space smash into calcium atoms in the soil, and is found in the earth’s crust, opening the door to dating fossilised bones and rock.

What is Radiometric Dating?

• When an organic entity is alive, its body keeps absorbing and losing carbon-14 atoms. When it dies, this process stops and the extant carbon-14 starts to decay away.
• Using the difference between the relative abundance of these atoms in the body and the number that should’ve been there, researchers can estimate when the entity died.
• A significant early issue with carbon dating was to detect carbon-14 atoms, which occur once in around 10 to 12 carbon atoms. Calcium-41 is rarer, occurring once in around 10 to 15 calcium atoms.
• In a new study, Scientist pitched a technique called Atom-Trap Trace Analysis (ATTA) as a solution.
• ATTA is sensitive enough to spot these atoms; specific enough to not confuse them for other similar atoms; and fits on a tabletop.

How does Atom-Trap Trace Analysis (ATTA) work?

• A sample is vaporised in an oven and the atoms in the vapour are laser-cooled and loaded into a cage made of light and magnetic fields.
• As it is known that atom, an electron in one orbital can transition to the next if it’s given a specific amount of energy; then it jumps back by releasing that energy.
• In ATTA, a laser’s frequency is tuned such that it imparts the same energy as required for an electron transition in calcium-41. The electrons absorb and release this energy, revealing the presence of their atoms.
• ATTA’s success is due to innovations with lasers as laser power is a lot higher, and laser frequency control is better.
• ATTA also avoids potassium-41 atoms, which are similar to calcium-41 atoms but lack the same electron transition.
• It can also be modified to study isotopes of some noble gases that have defied techniques developed for carbon-14, such as argon-39, krypton-81, and krypton-85.

What are the applications of ATTA + calcium-41?

• The successful application of ATTA to a calcium isotope now opens the possibility of extension to other metal isotopes.
• It can be used in an earth-science application. In warmer climate, glaciers retreat and allow rock below to accumulate calcium-41. In colder climate, glaciers advance and block the calcium-41 from reaching the rock. Here, ATTA can be used to study how long some rock has been covered by ice.

3. ROW OVER POWER OF THE DELHI LIEUTENANT GOVERNOR UNDER ARTICLE 239AA

TAGS: GS 2: GOVERNANCE

THE CONTEXT: The Centre promulgated an ordinance extending powers to the Delhi Lieutenant Governor over services in the administration of the national capital, which essentially involves the power to transfer and appoint bureaucrats posted to Delhi. Also, Central government moved the Supreme Court filing a review petition against the Court’s judgment that gave control over the subject of administrative services to the Delhi government.

EXPLANATION:

• Central government promulgated an ordinance to create a National Capital Civil Service Authority, empowered to recommend transfers, postings and disciplinary actions relating to all Group A and DANICS officers (Delhi, Andaman & Nicobar, Lakshadweep, Daman and Diu and Dadra and Nagar Haveli civil services).
• The Ordinance is aimed at nullifying the effect of the Constitution Bench’s verdict, which gave the Delhi government power over administrative services in the capital.

Article 239AA of the Constitution:

• It was inserted into the Constitution by the 69th Amendment Act, 1991.
• It conferred special status on Delhi following the recommendations of the S Balakrishnan Committee that was set up in 1987 to look into Delhi’s demands for statehood.
• According to this provision, the NCT of Delhi will have an administrator and a Legislative Assembly.
• Legislative Assembly, “shall have the power to make laws for the whole or any part of the NCT with respect to any of the matters in the State List or Concurrent List in so far as any such matter is applicable to Union territories,” except on the subjects of police, public order, and land.

Supreme Court about Article 239AA:

• SC interpreted Article 239AA, the provision that deals with the governance structure of Delhi, that underlines principles of federalism, participatory democracy, and collective responsibility.
• Two Constitution Benches of the Supreme Court, in July 2018 and May 2023, have dealt with the issue of the powers of the Delhi government. Both of these judgments involve the interpretation of Article 239AA of the Constitution, which deals with the governance structure of the national capital.
• In the majority ruling in 2018, the Constitution bench held that although Delhi could not be accorded the status of a state, the concept of federalism would still apply to it.
• The 2018 ruling said that with the introduction of Article 239AA in the Constitution, Parliament envisaged a “representative form of Government” for Delhi while seeking to provide a directly elected Legislative Assembly with legislative powers over matters within the State List and the Concurrent List. It also sought to mandate the Lieutenant Governor to act on the aid and advice of the Council of Ministers, except when he decides to refer the matter to the President for a final decision.
• The dispute over whether the Lieutenant Governor or the Chief Minister would have powers over these administrative services in Delhi went to the Supreme Court and a judgment was delivered recently.
• The ruling on May 5 places three constitutional principles – representative democracy, federalism and accountability – to an elected government within the interpretation of Article 239AA.
• The Bench in 2023 held that NCTD (Delhi), just like other states, represents the representative form of government”. However, it outlined that “the involvement of the Union of India in the administration of NCTD is limited by constitutional provisions, and any further expansion would be contrary to the constitutional scheme of governance.

Review petition:

• Constitution, under Article 137, gives the Supreme Court the power to review any of its judgments or orders.
• The court has the power to review its rulings to correct a “patent error” and not “minor mistakes of inconsequential import”.
• It is not necessary that only parties to a case can seek a review of the judgment on it. As per the Civil Procedure Code and the Supreme Court Rules, any person aggrieved by a ruling can seek a review.
• As per 1996 rules framed by the Supreme Court, a review petition must be filed within 30 days of the date of judgment or order.

In a 2013 ruling, the Supreme Court itself laid down three grounds for seeking a review of a verdict it has delivered:

1. The discovery of new and important matter or evidence which, after the exercise of due diligence, was not within the knowledge of the petitioner or could not be produced by him
2. Mistake or error apparent on the face of the record
3. Any other sufficient reason. In subsequent rulings, the court specified that “any sufficient reason” means a reason that is comparable to the other two grounds.

4. STARS PROGRAM

TAGS: PRELIMS PERSPECTIVE

THE CONTEXT: Ministry of Education and World Bank organized a one of its kind workshop on School-to-Work Transition under the STARS Program.

EXPLANATION:

Strengthening Teaching-Learning and Results for States (STARS) Project

• It was approved in October 2020 and it became effective on 23rd February 2021 for a period of five years i.e. up to FY 2024-25.
• It builds on the partnership between India and the World Bank for strengthening public school education and to support the country’s goal of providing ‘Education for All’.
• STARS project would be implemented as a new Centrally Sponsored Scheme under Department of School Education and Literacy, Ministry of Education.
• The STARS Project is being implemented in six identified States viz. Himachal Pradesh, Maharashtra, Odisha, Rajasthan, Madhya Pradesh and Kerala.
• The STARS Program is carved out of Samagra Shiksha, with a focus on those elements of the scheme that will most directly support school education enhancement.

Aims:

• It seeks to support the states in developing, implementing, evaluating and improving interventions with direct linkages to improved education outcomes and school to work transition strategies for improved labour market outcomes.
• The overall focus and components of the STARS project are aligned with the objectives of National Education Policy (NEP) 2020 of Quality Based Learning Outcomes.
• The Project envisions improving the overall monitoring and measurement activities in the Indian School Education System through interventions in selected states.
• The project shifts focus from the provision of inputs and maintaining of outputs to actual outcomes by linking the receipt and disbursement of funds to these outcomes.
• The STARS project also aims to focus on initiatives of PM e-Vidya, Foundational Literacy and Numeracy Mission and National Curricular and Pedagogical Framework for Early Childhood Care and Education as part of the Atmanirbhar Bharat Abhiyan.

The STARS Project has two major components:

At the national level, the project envisages the following interventions which will benefit all states and UTs:

• To strengthen MOE’s national data systems to capture robust and authentic data on retention, transition and completion rates of students.
• To support MOE in improving states PGI scores by incentivizing states governance reform agenda through SIG (State Incentive Grants).
• To support the strengthening of learning assessment systems.
• To support MOE’s efforts to establish a National Assessment Center (PARAKH). Among the tasks of such a center would be to leverage the experiences of states selected for the operation by collecting, curating and sharing these experiences with other states through online portals (e.g. Shagun and DIKSHA), social and other media engagement, technical workshops, state visits and conferences.

At the State level, the project envisages:

• Strengthening Early Childhood Education and Foundational Learning
• Improving Learning Assessment Systems
• Strengthening classroom instruction and remediation through teacher development and school leadership
• Governance and Decentralized Management for Improved Service Delivery.
• Strengthening Vocational education in schools through mainstreaming, career guidance and counselling, internships and coverage of out of school children

Some of the measurable outcomes of the project:

• Increase in students achieving minimum proficiency in grade 3 language in selected states
• Improvement in secondary school completion rate
• Improvement in governance index scores
• Strengthened learning assessment systems
• Partnerships developed to facilitate cross-learning between states
• Strengthened school management by training of Head Teachers and Principals for improved education service delivery.

Samagra Shiksha

• It is a Centrally Sponsored Scheme launched in 2018 under Ministry of Education.
• It is an overarching programme for the school education sector extending from pre-school to class 12 has been, therefore, prepared with the broader goal of improving school effectiveness measured in terms of equal opportunities for schooling and equitable learning outcomes.
• It subsumes the three erstwhile Schemes of Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and Teacher Education (TE).
• The major objectives of the Scheme:

1. provision of quality education and enhancing learning outcomes of students
2. Bridging Social and Gender Gaps in School Education
3. Ensuring equity and inclusion at all levels of school education; Ensuring minimum standards in schooling provisions
4. Promoting Vocationalisation of education; Support States in implementation of Right of Children to Free and Compulsory Education (RTE) Act, 2009
5. Strengthening and up-gradation of SCERTs/State Institutes of Education and DIET as a nodal agencies for teacher training.

5. ELECTION AND AIRWAVES

TAGS: GS 2: ELECTIONS

THE CONTEXT: In the recently-concluded Karnataka Assembly elections, political parties were provided free airtime on public broadcasters, All India Radio (Akashvani) and Doordarshan during elections.

EXPLANATION:

• The allotment was available to six recognised national parties Bharatiya Janata Party (BJP), the Indian National Congress (INC), the Bahujan Samaj Party (BSP), the National People’s Party (NPP), the Aam Aadmi Party (AAP) and the Communist Party of India (Marxist) and one recognised State party, the Janata Dal (Secular).
• The parties were allocated a base time of 45 minutes and additional slots based on performance in previous polls.

What is the rationale of the scheme?

• It is available to both national and recognised State parties.
• The facility to provide free airtime for political parties during elections was given statutory basis through the 2003 amendment to the Representation of People Act, 1951.
• The Supreme Court, in its famed judgment (The Secretary, Ministry of Information and Broadcasting vs Cricket Association of Bengal and ANR, 1995), held that airwaves are public property, and its use should serve the greater public good.

Working of the scheme:

• Time vouchers are distributed by a lottery system by the Election Commission in a transparent process to obviate any preferential treatment in getting primetime slots.
• The transcripts of political parties are vetted to ensure that they adhere to relevant codes.
• These codes proscribe any content which are inter alia critical of other countries, attack religions or other communities or incites violence and personal attacks.
• In case of any disagreements over the content of the script as vetted by the public broadcaster, it is referred to an Apex Committee comprising members from Akashvani and DD whose decision is final.
• The guidelines by the Election Commission of India (ECI) also require that a maximum of two panel discussions are also aired by Akashvani and DD.

Background:

• Since 1998, national and state parties have been getting a minimum of 45 minutes’ airtime each on DD and AIR channels that cover the area where elections are due, and additional time according to their performance in the preceding poll.
• This is spread out in a maximum of 15-minute slots per session and continues for the period between the last day of filing nominations and the end of the campaign. This is paid for by the public exchequer. The time given to parties was doubled before the Assembly polls last year to promote virtual campaigning.
• The regulations on party broadcasts on public frequencies disallow

1. a) Criticism of other countries
2. b) Attack on religions or communities
3. c) Anything obscene or defamatory
4. d) Incitement of violence
5. e) Anything amounting to contempt of court
6. f) Aspersion against the integrity of the President and Judiciary
7. g) Anything affecting the unity, sovereignty and integrity of the Nation
8. h) Any criticism by name of any person.

Comparison around the World:

• Elections being the lifeblood of a democracy, the misuse or abuse of airwaves to gain unfair electoral advantage is a key regulatory apprehension of governments around the world.
• In the U.S., the Federal Communications Commission, which regulates the electronic media in the country, devised the fairness doctrine to keep electioneering on the airwaves equitable. The now defunct fairness doctrine placed a positive obligation on broadcasters who carry political content of one candidate on its programme to extend the same to another candidate in the electoral fray.
• In the U.K., political parties are allocated designated slots by Parliament, called the party political broadcasts (PPBs) to convey important political information to the people. The British Communication watchdog, Ofcom, is responsible for ensuring that PPBs are included in every licensed public service television channel and commercial radio services.

1. SUPREME COURT RULING ON JALLIKATTU

TAGS: PRELIMS PERSPECTIVE
THE CONTEXT: A five-judge Bench of the Supreme Court upheld the amendments made by the legislatures of Tamil Nadu, Maharashtra, and Karnataka to The Prevention of Cruelty to Animals (PCA) Act, 1960, allowing bull-taming sports like jallikattu, kambala, and bullock-cart races.
EXPLANATION:

Background:

2014 ruling of Supreme Court:

• Animal Welfare Board of India, which is a statutory body under the Centre, and animal rights groups like People for the Ethical Treatment of Animals (PETA), provided documentary evidence to the court suggesting that the jallikattu animals were physically and mentally tortured.
• In 2014 SC ruling has then held that “bovine sports” were contrary to the provisions of Sections 3, 11(1)(a) and (m) of the Prevention of Cruelty to Animals Act, 1960 which relate to the “duties of persons having charge of animals” and define animal cruelty respectively.

Notification by Ministry of Environment, Forest and Climate Change:

• On January 7, 2016, a notification was issued by the Ministry of Environment, Forest and Climate Change prohibiting the “exhibition or training of bulls as performing animals”.
• However, an exception was carved in the notification, which specified that bulls might still be trained as performing animals at events such as Jallikattu in Tamil Nadu, according to the customs and culture of different communities.
• It was also specified that this exception is subject to conditions such as reducing the pain and suffering of bulls utilised in such sports.

Amendment by States:

• Tamil Nadu, Maharashtra, and Karnataka had in 2017 passed amendments to the central law against cruelty to animals in order to allow traditional sports such as the taming of bulls during Pongal.
• Following this, a SC Bench comprising then Chief Justice of India (CJI) Dipak Misra and Justice Rohinton Nariman opined that the jallikattu issue involved substantial questions of interpretation of the Constitution, and referred the matter to the Constitution Bench.
• The Bench was tasked with deciding whether Tamil Nadu could preserve jallikattu as its cultural right under Article 29(1) of the Constitution, which states that “any section of the citizens residing in the territory of India or any part thereof having a distinct language, script or culture of its own shall have the right to conserve the same”.

Recent judgement:

• Five-judge Bench overruled the view taken by a two-judge Bench of the court in its 2014 ruling in ‘Welfare Board of India v. A. Nagaraja’, banning such sports including jallikattu.
• Bench led by Justice KM Joseph ruled that the amendments, made in 2017 were “valid legislations”, it said that the jallikattu issue was “debatable”, and must ultimately be decided by the House of the People (Lok Sabha).
• Adding that the 2017 amendment “minimises cruelty to animals in the concerned sports”, the court held that once it’s implemented and read with the rules, the sports will not come under the definition of cruelty defined in the 1960 Act.
• Jallikattu” as bovine sports have to be isolated from the manner in which they were earlier practised and organising the sports itself would be permissible, in terms of the Tamil Nadu Rules.
• The court also said that the 2017 amendment does not violate Articles 51-A (g) and 51-A (h), which impose duties on Indian citizens to protect the environment and develop a scientific temper, humanism, spirit of inquiry, and reform, respectively. Further, it also held that the amendment didn’t violate Articles 14 (Right to Equality) and 21 (Right to Life) of the Constitution.

What is Jallikattu?

• Jallikattu, also known as eruthazhuvuthal, is a bull-taming sport traditionally played in Tamil Nadu as part of the Pongal harvest festival.
• The festival is a celebration of nature, and thanksgiving for a bountiful harvest, of which cattle-worship is part.
• However, the practice of jallikattu has long been contested, with animal rights groups and the courts expressing concern over cruelty to animals and the bloody and dangerous nature of the sport that sometimes causes death and injuries to both the bulls and human participants.

Stand of Other states

• Karnataka cabinet in January 2017 decided to amend the PCA Act, 1960, to pave the way for kambala, a sport involving a pair of buffaloes tied to the plough and anchored by one person. The buffaloes are made to run in parallel muddy tracks in a competition in which the fastest team wins.
• Maharashtra passed an amendment to the PCA Act, 1960, allowing “bullock cart races” involving bulls to conduct a race, “whether tied to cart with the help of wooden yoke or not (by whatever name called), with or without a cartman with a view to follow tradition and culture on such days”.

Animal Welfare Board of India

• Animal Welfare Board of India is a statutory advisory body on Animal Welfare Laws and promotes animal welfare in the country.
• It is established in 1962 under Section 4 of the Prevention of Cruelty to Animals Act, 1960.
• The Board consists of 28 Members including 6 Members of Parliament (2 Members of Parliament from Rajya Sabha and 4 Members of Parliament from Lok Sabha).The term of office of Members is for a period of 3 years.

Prevention of Cruelty to Animals (PCA) Act, 1960

• The Prevention of Cruelty to Animal Act, 1960 is one of the most comprehensive laws on the subject of animal welfare in India. It is an Act of the Parliament passed on 26 December 1960 with a vision to prevent cruelties on animals.

The main objective of the Act is:

• The Act prevents unnecessary pain or suffering on animals.
• The Act enshrines provisions for establishing the Animal Welfare Board of India, its powers, functions, constitution, and term of the office of members of the Board.
• The Act enshrines the guidelines regarding the experimentation on animals for scientific purposes and empowers a committee to make rules with regards to such experiments.
• The Act restricts the exhibition and training of performing animals. Both the terms ‘exhibit’ and ‘train’ are separately defined under Section 21 of the Act.

2. OPEN NETWORK FOR DIGITAL COMMERCE (ONDC)

TAGS: GS 3: ECONOMY; GS 3: SCIENCE AND TECHNOLOGY
THE CONTEXT: After the revolution brought in the realm of digital payments by the Unified Payments Interface (UPI), the Open Network for Digital Commerce (ONDC) is set to break new ground in the country’s digital commerce ecosystem.
EXPLANATION:

What is ONDC, and how does it work?

• ONDC is an interoperable network based on the BeckN protocol that anyone can piggyback on. It seeks to break down silos in digital commerce by enabling platforms of varying configurations (big or small) to connect and operate seamlessly on it.
• It comprises different entities called ‘Network Participants’, including Buyer Applications, Seller Applications, and Gateways that perform the search and discovery function.

Features of ONDC:

• It employs cutting-edge digital infrastructure, seeking to democratise digital commerce in India and make it more accessible and inclusive.
• ONDC with its network-centric approach and inclusive governance framework, will transform the digital commerce landscape in India and serve as an important reference point for a forward-looking Digital Public Infrastructure (DPI) governance framework.
• By moving the exchange of goods and services from a platform-centric approach to a network-centric approach, ONDC eliminates the need for buyers and sellers to use the same application, and promotes the discoverability of local digital stores across industries.
• From the buyer’s perspective, ONDC offers greater freedom of choice, reducing the overwhelming reliance on a single platform.
• Sellers also stand to benefit greatly: the network-centric approach of ONDC reduces the skewed bargaining power in favour of the platforms, which often results in higher entry barriers and lower margins for selle
• ONDC’s network-centric approach levels the playing field by making goods and services equitably accessible to all and benefiting all participants in the ecosystem.

ONDC’s inclusive governance approach:

• ONDC entity, a not-for-profit company incorporated under Section 8 of the Companies Act 2013, manages and operates the ONDC Network.
• It is responsible for building and maintaining the underlying infrastructure (common registries and protocols) as well as defining the rules of engagement and code of conduct for the Network Participants through the ONDC Network Policy and the ONDC Network Participant Agreement.
• Moving a step forward from previous Digital Public Infrastructure (DPI) governance models such as those of Aadhar and UPI, ONDC takes a more representative and multistakeholder approach to the governance that prioritises the evolving needs of its users.

How will the system be funded?

• The ONDC entity was initially promoted by the Quality Council of India and has since raised from multiple investors including private and public sector banks, depositories, development banks, and other financial institutions.
• While initial funding was obtained through share allotments, the ONDC entity aims to develop a self-sustaining financial model in the future.
• One potential revenue stream could include charging a small fee from platforms to fund ongoing and expansion-related activities independently.

Involvement of Government in ONDC:

• ONDC has been endorsed by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Union Ministry of Commerce and Industry. DPIIT is not involved in ONDC’s funding, but is at the forefront of its evangelisation through light-touch governmental oversight.
• To ensure a market+community driven approach to decision-making, the board includes representatives from banks, the government, and independent industry and civil society members.
• It will establish a User Council, comprising representatives from Network Participants and civil society. The User Council will provide regular guidance on various aspects of the network’s functioning and governance, serving as a liaison between Network Participants, Consumers, and the network.

3. THE ISSUE OF DOTTED LAND

TAGS: GS 3: ECONOMY
THE CONTEXT: The Andhra Pradesh government has started removing “dotted lands” in the state from the prohibited list, restoring full rights of selling or pledging these lands to the farmers who own them. Over 2 lakh acres of these British-era dotted lands have been identified for permanent denotification.
EXPLANATION:

What kind of lands are dotted lands?

• Dotted lands are disputed lands for which there are no clear ownership documents.
• Typically, one or more individuals as well as the government’s Revenue Department lay claim over the land.
• These lands were also noted as disputed lands in the resettlement register or land records register. The dots on the land documents indicated their disputed status.

Background:

• These lands came to be known as “dotted lands’’ because when, during the British era, land ownership surveys and resettlement of land records were taken up, local revenue officials who were tasked with identifying government-owned and privately-owned lands put dots in the ownership column if more than one person claimed ownership, or if ownership could not be clearly established.
• In urban areas, dotted lands have been illegally sold and houses have been constructed, which cannot be taxed. With lakhs of acres under dispute, the government also loses on stamp duty revenue.

How did these ownership disputes arise?

• If landowners did not leave clear wills passing on land to their heirs or children, and if a dispute arose because more than one heir lay claim over the land.
• Some of the land records in question are more than 100 years old, and had been locked up in the prohibited list in and registers.
• During subsequent surveys, government officials left the ownership column blank indicating their disputed status as per Section 22A of the Registration Act.

How will this step benefit landowners/farmers?

• Government introduced a Bill in march, 2023 to amend the Revenue Act to grant titles to farmers who have been cultivating dotted lands for more than 12 years.
• The dots, and entries in land registers, will be removed and these farmers will be given clear land ownership documents.
• As financial institutions do not recognise dotted land documents as clear ownership documents. Those farmers who were using the land, they could not procure loans from banks and financial institutions by putting up the land as collateral.
• With the lands now being taken off the prohibited list, landowners/farmers will get full rights over the lands, and enjoy all usual rights as land owners.
• They can apply for financial assistance for crop support, purchase seeds and fertilisers, and procure farm equipment. The landowners/farmers can also sell the lands or gift to kin or relatives.

4. RBI REGULATION OF GREEN DEPOSITS

TAGS: GS 3: ECONOMY
THE CONTEXT: Reserve Bank of India (RBI) came up with a regulatory framework for banks to accept green deposits from customers. Under the new framework, banks that accept green deposits will have to disclose more information on how they invest these deposits.
EXPLANATION:

What are green deposits?

• Green deposits are not very different from the regular deposits that banks accept from their customers. The only major difference is that banks promise to earmark the money that they receive as green deposits towards environment-friendly projects.
• Deposit raised under this banner should be deployed towards projects earmarked for green financing. Green financing is lending to or investing in projects which contribute towards climate risk mitigation, climate adaptation and resilience, and other climate-related or environmental objectives including biodiversity management and nature-based solutions.
• For example, a bank may promise that green deposits will be used towards financing renewable energy projects that fight climate change.
• This apart, all the rules applicable to normal deposits will be applicable to green deposits.
• A green deposit is just one product in a wide array of other financial products such as green bonds that help investors put money into environmentally sustainable projects.

RBI’s regulatory framework:

• The RBI’s framework for the acceptance of green deposits lays down certain conditions that banks must fulfill to accept green deposits from customers.
• Firstly, banks will have to come up with a set of rules or policies approved by their respective Boards that need to be followed while investing green deposits from customers.
• These rules need to be made public on the banks’ websites and banks will have to disclose regular information about the amount of green deposits received, how these deposits were allocated towards various green projects, and the impact of such investments on the environment.
• A third-party will have to verify the claims made by banks regarding the projects in which the banks invest their green deposits as well as the sustainability credentials of these business projects.
• The registered entities shall issue green deposits as cumulative or non-cumulative deposits.
• On maturity, the green deposits would be renewed or withdrawn at the option of the depositor. The green deposits shall be denominated in Indian Rupees only. The tenor, size, interest rate and other terms and conditions are defined in the Master Direction of the Reserve Bank.

Eligiblity norms:

• The framework is applicable to Scheduled Commercial Banks including Small Finance Banks excluding Regional Rural Banks, Local Area Banks and Payments Banks and all deposit-taking Non-Banking Financial Companies (NBFCs), including Housing Finance Companies.
• The RBI has come up with a list of sectors that can be classified as sustainable and thus eligible to receive green deposits.
• These include renewable energy, clean transportation including electric vehicles, climate change adaption, sustainable water and waste management, pollution control terrestrial and aquatic biodiversity conservation, energy efficiency, and afforestation and so on.
• Banks will be barred from investing green deposits in business projects involving fossil fuels, nuclear power, tobacco, etc.

Aims:

• It aims to satisfy depositors who care about the environment by investing their money in environmentally sustainable investment products.
• It is aimed at preventing greenwashing, which refers to making misleading claims about the positive environmental impact of an activity.
• The idea is to foster and develop a green finance ecosystem in the country.
• The framework is intended to “encourage regulated entities (REs) to offer green deposits to customers, protect interest of the depositors, aid customers to achieve their sustainability agenda, and help augment the flow of credit to green activities/projects.

5. LIBERALISED REMITTANCE SCHEME (LRS)

TAGS: GS 3: ECONOMY
THE CONTEXT: The government sought to clarify its decision to bring overseas credit card spends under the Liberalised Remittance Scheme (LRS) for forex outgo.
EXPLANATION:

Issue:

• Earlier debit card spends were covered under the LRS, but international credit card were not under purview and data collected from top money remitters under the scheme revealed that international credit cards were being issued with limits in excess of the norm.
• Finance Ministry announced that international credit card payments will come under the RBI’s liberalised remittance scheme, or LRS. This means any remittance over $2.5 lakh or its equivalent in a foreign currency will need the Reserve Bank of India’s (RBI) approval.
• Ministry assured that the scheme will not cover bona fide business visits overseas by employees and said the imposition of 20% tax collection on source or TCS for foreign remittances will primarily impact tour travel packages, gifts to non-residents and domestic high net-worth individuals investing in assets such as real estate, bonds, stocks outside India.
• The main impact will only be on investment in assets such as real estate, bonds and stocks outside India by high net worth people using their credit cards; tour and travel packages, and expensive gifts to non-residents.

The Liberalised Remittance Scheme (LRS):

• It is part of the Foreign Exchange Management Act (FEMA) 1999 which lays down the guidelines for outward remittance from India.
• The Scheme was introduced on February 4, 2004, with a limit of USD 25,000. The LRS limit has been revised in stages consistent with prevailing macro and micro economic conditions.
• Under LRS, all resident individuals, including minors, are allowed to freely remit up to USD250,000 per financial year (April – March). In case of remitter being a minor, the LRS declaration form must be countersigned by the minor’s natural guardian.
• This can be for any permissible current or capital account transaction, or a combination of both.
• Authorised dealers, such as banks, enable such transactions between residents and their overseas dependents, using only your PAN card for verification.
• Besides remittances, LRS can also offer foreign exchange services to Indian citizens for medical expenses or travelling.
• However, corporates, partnership firms, Hindu Undivided Family and charitable trusts are not eligible to use the LRS.

Prohibited items under the Scheme:

• Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000.
• Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty.
• Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market.
• Remittance for trading in foreign exchange abroad.
• Capital account remittances, directly or indirectly, to countries identified by the Financial Action Task Force (FATF) as “non- cooperative countries and territories”, from time to time.
• Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks.
• Gifting by a resident to another resident, in foreign currency, for the credit of the latter’s foreign currency account held abroad under LRS.

Individuals can avail of foreign exchange facility for the following purposes within the LRS limit of USD 2,50,000 on financial year basis:

• Private visits to any country (except Nepal and Bhutan)
• Gift or donation
• Going abroad for employment
• Emigration
• Maintenance of close relatives abroad
• Travel for business, or attending a conference or specialised training or for meeting expenses for meeting medical expenses, or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/ check-up
• Expenses in connection with medical treatment abroad
• Studies abroad
• Any other current account transaction which is not covered under the definition of current account in FEMA 1999.

1. EXPECTED CREDIT LOSS (ECL)-BASED LOAN LOSS PROVISIONING FRAMEWORK

TAGS: GS 3: ECONOMY

THE CONTEXT: Banks have sought a one-year extension from the Reserve Bank of India (RBI) for implementation of the Expected Credit Loss (ECL)-based loan loss provisioning framework.

EXPLANATION:

• In January 2023 the RBI came out with a draft guidelines proposing adoption of expected credit loss approach for credit impairment and gave banks one year period after the final guidelines are released for implementation of expected credit loss approach for loss provisioning.

Present framework of incurred loss method:

• At present, banks set aside money after an asset turns bad, and once the new system is put in place, it is widely expected to have an one time impact on bank profit.
• Credit risk losses are bifurcated into two types: expected loss and unexpected loss. Expected loss refers to the amount of loss anticipated on a loan or portfolio of loans and is mitigated using policies, risk pricing and provisions. Unexpected loss is addressed through regulatory capital.
• Currently, banks in India follow the incurred loss approach IRAC norms as prescribed by the Reserve Bank of India (RBI) in accounting for losses on loans and other financial assets. This approach, however, is not aligned with IFRS 9 and Ind AS 109.
• Incurred loss approach is based on the principle that losses are uncertain and difficult to predict, and that they should be recognised when they are certain to have occurred. Accordingly, even if a loan has a high risk of default and expected to result in a loss, the loss will not be recognised until the borrower actually defaults and the loss is incurred.

What is EXPECTED CREDIT LOSS (ECL)-BASED LOAN LOSS PROVISIONING FRAMEWORK

• ECL is a method of accounting for credit risk that is based on the loss that is likely to occur on a loan or portfolio of loans. It is used to estimate potential future losses on financial assets and to recognise those losses in financial statements. It represents the probability weighted estimate of the present value of all cash shortfalls from an instrument.
• In simple terms, ECL is calculated by estimating the forward-looking probability of default for each loan, and then multiplying that probability by the likely loss given default, which is the percentage loss that is expected to occur if the borrower defaults. The resulting value multiplied by the likely exposure at default is the expected loss for each loan, and the sum of these values is the expected loss for the entire portfolio.
• It recognises losses on loans as soon as they are expected to occur, regardless of whether the borrower has actually defaulted.
• The other key differentiator in the computation of provision for credit loss is that ECL factors in the historical credit quality of the lender, while incurred loss approach does not consider the same.
• The ECL models adopted by banks will be subject to rigorous validation as well as process-based checks, and to prudential regulatory floors.

Draft Guidelines:

• The RBI has proposed that banks will be allowed to design own credit loss models and spread the higher provisions over a five-year period under a newer system of setting aside money for lending.
• The banks will also have to make provisions for delays made by borrowers in their repayments under the proposed framework, in addition to existing provisioning requirement.
• This may lead to increased provisioning as the lenders will have to calculate estimated loss of interest income and provide for them.
• Under the ECL norms, banks will be required to classify financial assets (primarily loans, including irrevocable loan commitments, and investments classified as held-to-maturity or available-for-sale) into one of the three categories – Stage 1, Stage 2, and Stage 3, depending upon the assessed credit losses on them, at the time of initial recognition as well as on each subsequent reporting date and make necessary provisions.
• The RBI also proposed to introduce a transitional arrangement for introduction of ECL norms in order to avoid a capital shock.

Applicability of norms

• The measures will be applicable to banks’ loans and advances, including sanctioned limits under revolving credit facilities, lease receivables, financial guarantee contracts and investments in the debt and equity markets and investments classified as held-to-maturity or available-for-sale.

2. APPOINTMENT OF UNION PUBLIC SERVICE COMMISSION (UPSC) CHAIRMAN

TAGS: PRELIMS PERSPECTIVE

THE CONTEXT: Manoj Soni, a former Vice-Chancellor of two universities in Gujarat, was on May 16, 2023 sworn in as the Chairman of the Union Public Service Commission (UPSC). He was already serving as the Chairman in charge since April 2022. He had joined the UPSC as a member in June 2017.

EXPLANATION:

ABOUT UNION PUBLIC SERVICE COMMISSION (UPSC)

• Article-315 to Article 323 provides for elaborate provisions of constitutional body of Public Service Commission for the Union and a Public Service Commission for each State.
• The Union Public Service Commission is headed by a chairman, and it can have a maximum of 10 members.
• It shall be the duty of the Union and the State Public Service Commissions to conduct examinations for appointments to the services of the Union and the services of the State respectively.
• It shall also be the duty of the Union Public Service Commission, if requested by any two or more States so to do, to assist those States in framing and operating schemes of joint recruitment for any services for which candidates possessing special qualifications are required.
• The expenses of the Union or a State Public Service Commission, including any salaries, allowances and pensions payable to or in respect of the members or staff of the Commission, shall be charged on the Consolidated Fund of India or, as the case may be, the Consolidated Fund of the State

Appointment and term of office of members:

• Article-316 provides for appointment and term of office of members.
• The Chairman and other members shall be appointed by President and in the case of a State Commission by the Governor of the State.
• It is provided that as nearly as may be one-half of the members of every Public Service Commission shall be persons who have held office for at least ten years either under the Government of India or under the Government of a State.
• The terms and conditions of service of chairman and members of the Commission are governed by the Union Public Service Commission (Members) Regulations, 1969.
• Every member holds office for a term of six years or until he attains the age of sixty-five years, whichever is earlier.

Removal of Members

• A member of a Public Service Commission may be removed from his office in the manner provided in clause (1) or clause (3) of article 317.
• The chairman and any other member of the Commission can submit his resignation at any time to the President of India.
• He may be removed from his office by the President of India on the ground of misbehaviour (only if an inquiry of such misbehavior is made and upheld by Supreme Court) or if he is adjudged insolvent, or engages during his term of office in any paid employment outside the duties of his office, or in the opinion of the President unfit to continue in office by reason of infirmity of mind or body.

Further reappointment:

• Chairman of the Union Public Service Commission shall be ineligible for further employment either under the Government of India or under the Government of a State.
• Chairman of a State Public Service Commission shall be eligible for appointment as the Chairman or any other member of the Union Public Service Commission or as the Chairman of any other State Public Service Commission, but not for any other employment either under the Government of India or under the Government of a State.
• A person who holds office as a member of a Public Service Commission shall, on the expiration of his term of office, be ineligible for reappointment to that office.
• Member other than the Chairman of the Union Public Service Commission shall be eligible for appointment as the Chairman of the Union Public Service Commission or as the Chairman of a State Public Service Commission, but not for any other employment either under the Government of India or under the Government of a State.
• Member other than the Chairman of a State Public Service Commission shall be eligible for appointment as the Chairman or any other member of the Union Public Service Commission or as the Chairman of that or any other State Public Service Commission, but not for any other employment either under the Government of India or under the Government of a State.

Functions of UPSC

• It shall be consulted on all matters relating to methods of recruitment to civil services and for civil posts.
• It shall be consulted on the principles to be followed in making appointments to civil services and posts and in making promotions and transfers from one service to another and on the suitability of candidates for such appointments, promotions or transfers.
• It shall be consulted on all disciplinary matters affecting a person serving under the Government of India or the Government of a State in a civil capacity, including memorials or petitions relating to such matters.
• It shall be consulted on any claim by or in respect of a person who is serving or has served under the Government of India or the Government of a State or under the Crown in India or under the Government of an Indian State, in a civil capacity, that any costs incurred by him in defending legal proceedings instituted against him in respect of acts done or purporting to be done in the execution of his duty should be paid out of the Consolidated Fund of India, or, as the case may be, out of the Consolidated Fund of the State.
• It shall be consulted on any claim for the award of a pension in respect of injuries sustained by a person while serving under the Government of India or the Government of a State or under the Crown in India or under the Government of an Indian State, in a civil capacity, and any question as to the amount of any such award.

3. LAUNCH OF NVS-01 SATELLITE

TAGS: GS 3: SCIENCE AND TECHNOLOGY

THE CONTEXT: The Indian Space Research Organisation (ISRO) will fly NVS-01 to augment the seven-satellite navigation constellation NavIC on May 29, 2023.

EXPLANATION:

• Five years after launching the last navigation satellite in 2018, ISRO is gearing up to launch a new one from Sriharikota to replace an old satellite.
• The aim is to maintain a constellation of functional seven satellites needed to keep its navigation system operational and running.

NVS-01 satellite:

• ISRO is likely to launch NVS-01, a navigation satellite on-board from the Geosynchronous Launch Vehicle or GSLV Mk-II.
• This will be a return flight mission for the GSLV launch vehicle, which will carry the next generation NavIC satellite.
• The NVS-01 satellite will replace the navigational capabilities of another satellite IRNSS-1G in the constellation that was launched in 2016 and has a mission life of 12 years.
• IRNSS-1G was the seventh navigation satellite of the seven satellites constituting the IRNSS space segment. Its predecessors—IRNSS-1A, 1B, 1C, 1D, 1E and 1F—were launched by PSLV-C22, PSLV-C24, PSLV-C26, PSLV-C27, PSLV-C31 and PSLV-C32
• It will retain its communication and messaging capabilities.

Navigation with Indian Constellation (NavIC):

• At present, there are four major global navigation system the US global positioning system, the Russian GLONASS, the European Galileo, and the Chinese Beidou. There are two regional navigational systems in the world Japan’s Quasi-Zenith system and India’s Navic.
• It is a regional navigation satellite system and was established by ISRO which was earlier known as Indian Regional Navigation Satellite System (IRNSS).
• It aims to meet the “positioning, navigation and timing” requirement of the nation.
• NavIC is designed with a constellation of seven satellites and a network of ground stations operating 24×7. Three satellites of the constellation are placed in geostationary orbit and four satellites are placed in inclined geosynchronous orbit.
• The ground network consists of a control centre, precise timing facility, range and integrity monitoring stations, two-way ranging stations, etc.
• NavIC offers two services–standard position service (SPS) for civilian users and Restricted Service (RS) for strategic users. These two services are provided in both L5 (1176.45 MHz) and S band (2498.028 MHz).
• NavIC coverage area includes India and a region up to 1,500km beyond Indian boundary.
• NavIC signals are designed to provide user position accuracy better than 20m and timing accuracy better than 50ns(nano second).
• NavIC SPS signals are interoperable with the other global navigation satellite system (GNSS) signals of GPS (US), Glonass (Russia), Galileo (Europe) and BeiDou.
• Two frequencies, the L5 and S bands, are used by the seven satellites in the NavIC constellation so far to provide positioning information. These satellites’ replacements, the new NVS-01 satellites and later, will also have L1 frequency. Even less sophisticated, consumer-grade gadgets like smartwatches can pick up the L1 signal, which is the oldest and most reliable GPS signal. The use of NavIC in devices for civilian use can therefore increase with this band.
• NavIC is better than GPS in some aspects. While GPS can get you within 20 metres of your target, NaVIC is more accurate and can get you even closer within 5 metres. However, unlike GPS, which can be used anywhere in the world, NaVIC is regional and can only be used within India and up to 1,500 km from its borders.

4. NEW GOODS AND SERVICES TAX (GST) COMPLIANCE MEASURES

TAGS: GS 3: ECONOMY

THE CONTEXT: In two significant measures to curb tax evasion and increase compliance under the Goods and Services Tax (GST) regime, the government has decided to lower the threshold for businesses to generate e-invoice for business-to-business (B2B) transactions, from Rs 10 crore to Rs 5 crore, and has rolled out the automated return scrutiny module for GST returns in a backend application for central tax officers.

EXPLANATION:

• Amid rising instances of GST frauds and cases of fake invoices, these changes are expected to broaden the compliance mandate for more businesses, especially small and medium enterprises and help boost the GST revenue collections.

Recent changes:

->Automated return scrutiny module:

• Finance Minister in a review of the Central Board of Indirect Taxes & Customs (CBIC), had given directions to roll out an automated return scrutiny module for GST returns at the earliest.
• This will enable the officers to scrutinize GST returns of centre-administered taxpayers selected on the basis of data analytics and risks identified by the system.
• This will display discrepancies on account of risks associated with a return to the tax officers. They will interact with the taxpayers through the GSTN common portal for communication of discrepancies noticed in returns and subsequent action in form of either issuance of an order of acceptance of reply or issuance of show cause notice or initiation of audit/ investigation.

->Changes for e-invoicing:

• The government has also lowered the threshold for businesses to generate e-invoice for business-to-business (B2B) transactions to Rs 5 crore from Rs 10 crore under GST. The changes will come into effect from August 1. 2023.
• At present, businesses with turnover of Rs 10 crore and above are required to generate e-invoice for all B2B transactions.

->What is e-invoicing?

• The GST Council in its 37th meeting in September 2019 had approved the standard of e-invoice with the primary objective to enable interoperability across the entire GST ecosystem.
• Under this, a phased implementation was proposed to ensure a common standard for all invoices, that is, an e-invoice generated by one software should be capable of being read by any other software and through machine readability, an invoice can then be uniformly interpreted.
• With a uniform invoicing system, the tax authorities are able to pre-populate the return and reduce the reconciliation issues.
• With a high number of cases involving fake invoices and fraud availment of input tax credit, GST authorities have pushed for implementation of this e-invoicing system to help to curb the actions of tax evaders and reduce the number of frauds as the tax authorities will have access to data in real-time.
• E-invoicing was initially implemented for large companies with turnover of over Rs 500 crore, and within three years the threshold has now been lowered to Rs 5 crore.
• E-invoicing for B2B transactions was made mandatory for businesses with turnover of over Rs 500 crore from October 1, 2020. Then it was extended to businesses with turnover of over Rs 100 crore from January 1, 2021, after which it was extended to businesses with turnover of over Rs 50 crore from April 1, 2021, and then the threshold was lowered to Rs 20 crore from April 1, 2022. It was further reduced to Rs 10 crore from October 1, 2022.
• Reduction in the e-invoicing threshold is seen as an important factor for boosting GST revenue collections and checking frauds, it will also increase compliance requirements for smaller businesses.

GOODS AND SERVICES TAX (GST) COUNCIL:

• It has been provided in the Constitution (One Hundred and First Amendment) Act, 2016 that the GST Council, in discharge of various functions, shall be guided by the need for a harmonized structure of GST and for the development of a harmonized national market for goods and services.
• As per Article 279A, the Council will make recommendations to the Union and the States on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws, principles that govern Place of Supply, threshold limits, GST rates including the floor rates with bands, special rates for raising additional resources during natural calamities/disasters, special provisions for certain States, etc

GST Council which will be a joint forum of the Centre and the States, shall consist of the following members: –

1. a) Union Finance Minister – Chairperson
2. b) The Union Minister of State, in-charge of Revenue of finance – Member
3. c) The Minister In-charge of finance or taxation or any other Minister nominated by each State Government – Members

Working of council:-

The Constitution (One Hundred and First Amendment) Act, 2016 provides that every decision of the GST Council shall be taken at its meeting by a majority of not less than 3/4th of the weighted votes of the Members present and voting. The vote of the Central Government shall have a weightage of 1/3rd of the votes cast and the votes of all the State Governments taken together shall have a weightage of 2/3rd of the total votes cast in that meeting. One half of the total number of members of the GST Council shall constitute the quorum at its meeting.

The Council is empowered to make recommendations to the Union and the States on the following:-
(a) the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in the goods and services tax
(b) the goods and services that may be subjected to, or exempted from the goods and services tax
(c) model Goods and Services Tax Laws, principles of levy, apportionment of Integrated Goods and Services Tax and the principles that govern the place of supply
(d) the threshold limit of turnover below which goods and services may be exempted from goods and services tax
(e) the rates including floor rates with bands of goods and services tax
(f) any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster
(g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand

(h) the date on which GST shall be levied on petroleum crude, high speed diesel, motor spirit (petrol), natural gas and aviation turbine fuel
(i) any other matter relating to the goods and services tax, as the Council may decide.

5. THAWING PERMAFROST

TAGS: GS 3: ENVIRONMENT

THE CONTEXT: With rising global temperatures, thawing permafrost is likely to destabilise thousands of industrial sites and linked contaminated areas in the Arctic, which could result in the spread of toxic substances across the region, according to a new study. The study, ‘Thawing permafrost poses environmental threat to thousands of sites with legacy industrial contamination’, was published in the journal Nature Communications.

EXPLANATION:

What is Permafrost?

• Permafrost is essentially any ground that stays frozen 0 degree Celsius or lower for at least two years straight.
• Permafrost can be found both on land and beneath the ocean’s surface. It can be found in locations where the temperature rarely rises above freezing. This indicates that permafrost is common in Arctic locations such as Greenland, Alaska, Russia, China, and Eastern Europe.
• According to the National Aeronautics and Space Administration (NASA), permafrost is composed of “a combination of soil, rocks and sand that are held together by ice. The soil and ice in permafrost stay frozen all year long.” However, although the ground remains perennially frozen, permafrost regions aren’t always covered with snow.
• As Earth’s climate warms, the permafrost is thawing. That means the ice inside the permafrost melts, leaving behind water and soil. Thawing permafrost can have dramatic impacts on our planet and the things living on it.

Findings of the study:

• Because of the characteristics of permafrost, countries and corporations began building infrastructure on the Arctic’s permafrost. The region witnessed a further expansion of industrial and economic development during the Cold War, it became a centre for resource extraction and military activities. This led to the accumulation of industrial and toxic waste on or in permafrost which was never removed.
• The known industrial waste types in the region include drilling and mining wastes, toxic substances like drilling muds and fluids, mine waste heaps, heavy metals, spilled fuels, and radioactive waste.
• But as the Arctic is getting warmer nearly four times as fast as the rest of the planet due to climate change, permafrost is thawing rapidly, which could destabilise not only the industrial sites but also the contaminated areas.
• And once the destabilisation takes place, toxic substances would be unleashed across the region, threatening numerous species living there and the health of people who depend on them.
• According to the report, current models predict that “a pulse of carbon released” from permafrost to the atmosphere will occur within the next hundred years, if not sooner. It is unknown how much carbon will be released from permafrost in the coming years.

Other consequences of thawing permafrost:

• One of its most dangerous consequences is the release of greenhouse gases into the atmosphere. A 2022 report by NASA said, “Arctic permafrost alone holds an estimated 1,700 billion metric tons of carbon, including methane and carbon dioxide. That’s roughly 51 times the amount of carbon the world released as fossil fuel emissions in 2019.”
• A 2022 study by Columbia University observed that thawing permafrost would unleash thousands of dormant viruses and bacteria. Some of these “could be new viruses or ancient ones for which humans lack immunity and cures, or diseases that society has eliminated, such as smallpox or Bubonic plague.
• Furthermore, Plant matter frozen in permafrost does not decay, however, when permafrost thaws, microbes within the dead plant material begin to break down the matter, releasing carbon into the atmosphere.

1. MITOCHONDRIAL DONATION TREATMENT

TAGS: GS 3: SCIENCE AND TECHNOLOGY

CONTEXT: Recently, a baby born using three persons’ DNA in the United Kingdom. The baby has three parents, technically, deriving the mitochondria from a donor apart from genetic material (DNA) from biological parents. Pioneering technology was used to facilitate this, in order to prevent the child from inheriting the mother’s mitochondrial disease.

EXPLANATION:

Process of the treatment:

• Three-parent baby, human offspring produced from the genetic material of one man and two women through the use of assisted reproductive technologies, specifically Mitochondrial Replacement Therapy (MRT) and three-person In Vitro Fertilization (IVF).
• Baby carries most of its DNA from its parents, and a minor per cent from the donor, whose mitochondria have been used while fertilising the egg.
• The errant mitochondrial DNA may be removed either before or after In-Vitro Fertilisation.
• In the first case, the nuclear DNA of the donor egg is removed and replaced by that of the egg from the woman whose mitochondrial DNA needs to be replaced. After that, this egg is fertilised as usual and implanted into the womb.
• In the second option, following in-vitro fertilisation, the fertilised nuclear DNA is transferred to a donor egg from which the nuclear DNA has already been removed. This leaves the errant mitochondrial DNA out as the fertilised nuclear DNA now has the donor mitochondrial DNA for company.

What are Mitochondria?

• One of the primary organelles in each cell is the nucleus, which contains our DNA, or genetic information.
• Mitochondria are another type of double-membraned cellular organelle, which are crucial for generating energy. They are commonly known as the powerhouse of the cell and they divide independently of the cell.
• They have a very small genome of their own, which in many ways resemble that of more primitive life forms.
• The mitochondrial DNA controls its functions much like the rest of the DNA of any living form and decides what the organism would look and act like.

How do Mitochondria get affected?

• Mitochondrial DNA makes up less than 0.0005% of our entire DNA, but since the child receives it only from the mother, any aberrations in her mitochondrial DNA that may cause diseases are passed on completely to the child.
• Similar to nuclear DNA, mitochondrial DNA serves an important purpose, namely providing the genetic blueprint for molecular machines called proteins that carry out cellular functions. However, this capacity of mitochondria to carry DNA also makes them a genetic liability of sorts.
• Specifically, just like nuclear DNA, mitochondrial DNA is susceptible to mutations in the DNA code that can cause disease. If these DNA mutations lead to the production of damaged mitochondrial proteins, they can cause a class of diseases termed mitochondrial disorders.

What is the need?

• Certain defects might occur impacting the way the mitochondria produce energy for the cells (especially in the ‘energy-hungry’ tissues of the brain, nerves, muscles, kidneys, heart, liver), and thereby impacting cell function.
• The diseases that arise out of such mitochondrial mutations are called mitochondrial diseases.
• When the mitochondria are impaired and do not produce sufficient energy, that affects how the organs function, leading to a broad assortment of symptoms across the body, including brain damage, organ failure and muscle wastage.

Possible risks:

• The procedure is not without risks. Recent research has found that in some cases, the tiny number of abnormal mitochondria that are inevitably carried over from the mother’s egg to the donor egg can multiply when the baby is in the womb. So-called reversion or reversal could lead to a disease in the child.

2. CENTRE FOR PROCESSING ACCELERATED CORPORATE EXIT (C-PACE)

TAGS: PRELIMS PERSPECTIVE

CONTEXT: The Ministry of Corporate Affairs (MCA) has set up the Centre for Processing Accelerated Corporate Exit (C-PACE) to centralise the process of striking off companies from the MCA Register.

EXPLANATION:

Establishment of C-PACE:

• It was announced in the Union Budget 2022-23. C-PACE came into effect on April 1, 2023.
• The establishment of C-PACE is part of the MCA’s efforts towards ease of doing business and ease of exit for companies.
• The C-PACE institution, established under sub-section (1) of section 396, of the Companies Act, 1956 will be operational through the Registrar of Companies (RoC) for the purpose of processing and disposal of applications.

Operation of C-PACE:

• It is located at the Indian Institute of Corporate Affairs in Gurgaon.
• It will be in operation through the Registrar of Companies (RoC) for the purposes of exercising functional jurisdiction of processing and disposal of applications
• It will work under the supervision of the Director General of Corporate Affairs.

Objectives of C-PACE:

• It will reduce the burden on the registry and provide stakeholders with hassle-free filing, timely and process-bound striking off of their company’s names from the register.
• It will help keep the registry clean and provide stakeholders with more meaningful data.
• As per new rules issued by the Ministry of Corporate Affairs, from May 1, applications for removal of the name of a company under Section 248 of the Companies Act would be made to the registrar, C-PACE.
• It is expected that the process of voluntary winding up of companies would now be completed in six months as against the earlier timeline of two years.
• Section 248 of the Companies Act, 2013 provides for the removal of the name of the company from the RoC if it is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within the said period for obtaining the status of a dormant company under Section 455.

Reasons for establishment:

• Setting up of the C-PACE is part of the several measures taken by the MCAin the recent past towards ease of doing business and ease of exit for the companies.
• Earlier, several IT-based systems have been established for accelerated registration of new companies.
• Despite the Insolvency and Bankruptcy Code, 2016 (IBC) significantly changing the insolvency scenario in the country, the timelines for admission and resolution of such cases have fallen woefully short of expectations.
• This has led to the need for a detailed statutory mechanism for resolving cross-border insolvency that would aid in the resolution of complex cases that involve cases of groups having multiple jurisdictions and would maximise value for all stakeholders.
• Centre for Processing Accelerated Corporate Exit (C-PACE) with process re-engineering will facilitate and speed up the voluntary winding-up of these companies from the currently required two years to less than six months.

3. SANTINIKETAN FOR INCLUSION IN UNESCO’S WORLD HERITAGE LIST

TAGS: PRELIMS PERSPECTIVE

CONTEXT: Santiniketan, the home of Nobel laureate Rabindra Nath Tagore has been recommended for inclusion in UNESCO’s World Heritage List. The recommendation was made by the International Council on Monuments and Sites (ICOMOS), which is the advisory body to the UNESCO World Heritage Centre, based on a file moved by the Indian government.

EXPLANATION:

• Santiniketan, if selected would be the second cultural symbol from West Bengal, to make it to the UNESCO list. In 2021, UNESCO included ‘Durga Puja in Kolkata’ in its list of Intangible Cultural Heritage of Humanity.
• However, it would be India’s 41st world heritage site and going to be the third site in Bengal; the other two are Darjeeling Himalayan Railways and Sundarbans National Park.

Selection criteria for UNESCO’s World Heritage List:

• To be included on the World Heritage List, sites must be of outstanding universal value and meet at least one out of ten selection criteria mentioned in the UNESCO list.

(i)to represent a masterpiece of human creative genius

(ii)to exhibit an important interchange of human values, over a span of time or within a cultural area of the world, on developments in architecture or technology, monumental arts, town-planning or landscape design

(iii)to bear a unique or at least exceptional testimony to a cultural tradition or to a civilization which is living or which has disappeared

(iv)to be an outstanding example of a type of building, architectural or technological ensemble or landscape which illustrates (a) significant stage(s) in human history

(v)to be an outstanding example of a traditional human settlement, land-use, or sea-use which is representative of a culture (or cultures), or human interaction with the environment especially when it has become vulnerable under the impact of irreversible change

(vi)to be directly or tangibly associated with events or living traditions, with ideas, or with beliefs, with artistic and literary works of outstanding universal significance. (The Committee considers that this criterion should preferably be used in conjunction with other criteria)

(vii)to contain superlative natural phenomena or areas of exceptional natural beauty and aesthetic importance

(viii)to be outstanding examples representing major stages of earth’s history, including the record of life, significant on-going geological processes in the development of landforms, or significant geomorphic or physiographic features

(ix)to be outstanding examples representing significant on-going ecological and biological processes in the evolution and development of terrestrial, fresh water, coastal and marine ecosystems and communities of plants and animals

(x)to contain the most important and significant natural habitats for in-situ conservation of biological diversity, including those containing threatened species of outstanding universal value from the point of view of science or conservation.

UNESCO World Heritage Sites in India:

There are 32 cultural sites, 7 natural sites and 1 mixed as recognised by UNESCO. Here is the list of 40 UNESCO World Heritage Sites in India:

Shantiniketan

• It is the place where the Nobel laureate Rabindranath Tagore resided and set up the esteemed Visva-Bharati University.
• In the early 20th century, India was under the yoke of colonialism, and Santiniketan heralded a break from colonial revivalist architecture to forge a new modernity, which was not looking to the West but inwards, exploring indigenous materials and techniques, delving into India’s rich past and absorbing influences from the East to create a pan-Asian modernity.
• Santiniketan was a bold attempt to revive indigenous construction techniques to create a contextual, regional modernism”.

International Council on Monuments and Sites

• ICOMOS, a France-based international culture body, comprises professionals, experts, and representatives from local authorities, companies and heritage organizations.
• It is dedicated to the conservation and enhancement of global architectural and landscape heritage.

4. LONDON INTERBANK OFFERED RATE (LIBOR)

TAGS: GS 3: ECONOMY

CONTEXT: The Reserve Bank of India (RBI) told banks and other regulated entities to ensure a complete transition away from the London Interbank Offered Rate (LIBOR) from July 1, 2023.

EXPLANATION:

What is LIBOR?

• LIBOR is the benchmark interest rate at which major global banks lend to one another.
• It is administered by the Intercontinental Exchange or ICE., which asks major global banks how much they would charge other banks for short-term loans.
• The rate is calculated using the Waterfall Methodology, a standardized, transaction-based, data-driven, layered method.
• It is computed for five currencies with seven different maturities ranging from overnight to a year. The five currencies for which LIBOR is computed are the Swiss franc, euro, pound sterling, Japanese yen and US dollar. ICE benchmark administration consists of 11 to 18 banks that contribute to each currency.

How LIBOR is used?

• It is the global reference rate for unsecured short-term borrowing in the interbank market.
• It acts as a benchmark for short-term interest rates.
• It is used for pricing interest rate swaps, currency rate swaps as well as mortgages.
• It is an indicator of the health of the financial system and provides an idea of the trajectory of impending policy rates of central banks.
• Banks and private companies were using LIBOR as the benchmark rate for raising funds abroad.
• It was a key benchmark for setting the interest rates charged on adjustable-rate loans, mortgages and corporate debt.

What was wrong with LIBOR?

• In 2012, it came to light that many global banks had colluded to manipulate the LIBOR. The LIBOR also had a role to play in escalating the 2008 financial crisis. As a result, many central banks and regulatory authorities decided to move away from the benchmark.
• LIBOR is being replaced by the Secured Overnight Financing Rate (SOFR) on June 30, 2023, with a phase-out of its use beginning after 2021.

New Guidelines by RBI:

• The RBI has told banks to ensure that no new transaction undertaken by them or their customers relies on or is priced using the USD LIBOR or the Mumbai Interbank Forward Outright Rate (MIFOR).
• In India, the RBI advised banks to stop entering into LIBOR-linked contracts latest by December 31, 2021. Major banks like SBI and ICICI Bank soon announced a transition to new benchmark rates.  The latest move is likely to have some transitory impact on banks.
• On May 12, RBI asked banks and RBI-regulated entities to take steps to ensure a complete transition away from the LIBOR from July 01, 2023. Banks and Financial Institutions (FI) were advised to ensure that no new transaction undertaken by them or their customers relies on or is priced using the USD LIBOR or the MIFOR.

What will replace LIBOR?

• The RBI has offered options like the SOFR (Secured Overnight Financing Rate), which is linked to US treasury market transactions, and the Modified Mumbai Interbank Forward Outright Rate (MMIFOR). SOFR is considered a more accurate and more secure pricing benchmark.

What exactly is SOFR?

• SOFR is a broad measure of the cost of borrowing cash overnight, collateralised by (US) treasury securities in the repo market. It is based on the actual market activity and is not dependent on a few firms to set the rates.

What will be the impact of the LIBOR transition on banks and companies?

• Banks use benchmark rates like LIBOR to price international transactions while issuing financial instruments. Banks will have to work on updating their systems and agreements.
• Since LIBOR has been used for a long time, the transition will be a complex exercise for banks. The same is true for large companies that are looking at international borrowings or bond issues.

5. DIGITAL PUBLIC INFRASTRUCTURE (DPI)

TAGS: GS 3: SCIENCE AND TECHNOLOGY

CONTEXT: Member countries of the Shanghai Cooperation Organization (SCO) China, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan, and Uzbekistan have agreed on adopting India’s model of building and deploying Digital Public Infrastructure (DPI).

EXPLANATION:

Digital Public Infrastructure (DPI):

• DPI is a set of interoperable and networked technologies that facilitate information flow with robust governance and inclusive participation of actors in the ecosystem, providing new flows and benefits that are accessible to everyone.
• DPI’s benefits span all 17 Sustainable Development Goals (SDGs), with early evidence indicating that countries with DPI are much more resilient in the face of crises.
• India’s digital public infrastructure, which includes the Aadhar, Unified Payments Interface (UPI) — in other words, digital payments and Digi locker (an online storage platform), collectively come under the ‘India Stack’.

Digital Public Infrastructure (DPI) aims:

• The DPI aims to deploy digital technology among member states and ensure digitally inclusive growth. The SCO recognizes the need for interoperability and setting common standards for digital systems.
• It will put in place a common structure that will ensure interoperability between the different technologies they deploy,
• It aims to establish common standards for the interoperability of digital systems within the SCO. In line with its responsibilities as the G20 Presidency, the Indian government is reaching out to multiple countries, offering them its technology stack without any fees.
• DPI furthers peoples’ access to public services and economic opportunities. It accelerates and scales functions that lie at the heart of social and economic activity, such as identification and authentication or making and receiving payments. This initiative is expected to benefit Indian startups and system integrators.
• DPI can address common challenges that the global community is facing, from advancing gender equality to restoring our natural world.
• For many countries, such uses of digital technology hold great potential to expand access to basic resources and services, strengthen healthcare and education systems and raise overall living standards.
• They enable online, paperless, cashless, and privacy-respecting digital access to a variety of public and private services, the paper noted.
• It can support the formalisation of the Indian economy, where a large section of the population works in the informal sector, the paper added.

Unified Payments Interface

• Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.
• It also caters to the “Peer to Peer” collection request which can be scheduled and paid as per requirement and convenience.

DigiLocker

• DigiLocker is a flagship initiative of the Ministry of Electronics & IT (MeitY) under the Digital India programme.
• DigiLocker aims at the ‘Digital Empowerment’ of citizens by providing access to authentic digital documents to citizens’ digital document wallets.
• DigiLocker is a secure cloud-based platform for the storage, sharing and verification of documents & certificates.