Note4Students
From UPSC perspective, the following things are important :
Prelims level: AIIB
Mains level: Not Much
The Asian Infrastructure Investment Bank (AIIB) is scheduled to lend $500 million to Pakistan in this month.
Asian Infrastructure Investment Bank (AIIB)
- The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia, began operations in January 2016.
- It aims to stimulate growth and improve access to basic services by furthering interconnectivity and economic development in the region through advancements in infrastructure.
- AIIB has now grown to 102 approved members worldwide.
- The US & Japan are not its members.
- It is a brainchild of China. It has invested in 13 member regions.
Capital and shareholding of AIIB
- It has authorized capital of US 100 billion dollars and subscribed capital of USD 50 billion.
- It offers sovereign and non-sovereign finance for projects in various sectors with an interest rate of London Interbank Offered Rate (LIBOR) plus 1.15 % and a repayment period of 25 years with 5 years in grace period.
- China is the largest shareholder in AIIB with a 26.06% voting power, followed by India with 7.62% and Russia with 5.92% voting power.
Try this question from CSP 2019
Q.With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements
- AIIB has more than 80 member nations.
- India is the largest shareholder in AIIB.
- AIIB does not have any members from outside Asia.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Post your answers here.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: MSP
Mains level: Issues related to MSP
Context
- The CACP recommendations on Minimum Support Prices (MSP) for the mandated six Rabi crops wheat, barley, gram, lentil, rapeseed and mustard, and safflower are arrived by considering several factors.
What is MSP?
- MSP is a part of India’s Agriculture Price Policy. The MSP for various crops is announced by the central government at the beginning of every crop season on the recommendation of CACP.
- MSP is price at which the government purchases crops from the farmers. It is the guaranteed ‘minimum floor price’ that farmer must get from the government in case the market price of the crops falls below the MSP.
- The Rationale behind MSP is to support the farmer from excess fall in the crop prices, it is like an insurance policy for the farmers to save them from price falls.
- The most important aim of the MSP policy is to save the Indian farmer from making distress sales. In the event of glut and bumper harvest, when market prices fall below the announced MSP, the government through its agencies buys the entire stock offered by the farmers at the MSP.
What are the factors included in MSP calculation?
- Factors taken into consideration are as follows:
- Cost of production,
- Supply and demand situation of various crops in domestic and global markets,
- Domestic and world prices along with trade opportunities,
- Terms of trade between agriculture and non-agriculture sector,
- Optimal utilization of land, water and other production resources,
- A minimum of 50 per cent mark-up over the cost of production.
- Though on the surface the list looks comprehensive, there are two missing concerns given the present-day challenges, necessitating a change in the MSP formula.
- Acreage
- Water usage
- Rising MSP leads to water conflict: There is ample data-based evidence to show the causal relation between acreage and MSP movements. Rising MSPs of water-intensive crops has resulted in some of the water conflicts over river basins as shown by recent studies in the Cauvery and the Teesta River basins.
- MSP for rice and wheat: This is also because MSP for rice and wheat, where government agencies like Food Corporation of India play a role in procurement, has created a reference for market prices. Ever since the MSP was introduced in the late 1970s, it became the “floor” price-setter for rice and wheat.
- Higher MSP for water consuming cereals: Between 1980 and 2000, the MSPs of rice and wheat increased at a much faster rate than those of the “coarse” cereals (like jowar, bajra and ragi) which eventually led to movement of the terms-of-trade (defined as ratio of prices of competing crops, e.g., rice and millets) in Favour of the water-consuming cereals.
- Shifting of High acreage to High MSP crop: This led to acreages moving largely in Favour of water consuming staples, whose crop-water requirements are many times of that of the drier millets. In the case of Cauvery and Teesta, the introduction of dry season paddy and its expansion created reliance on irrigation thereby Fuelling demand for water.
- Non promotion of rabi millets: Though the MSP formula claims to take into account land and water use, it needs to be noted here that there is a need for Rabi millets (e.g., ragi) to be promoted through MSPs. This is because the millets are less water-consuming as compared to many other alternatives including wheat. However, there does not seem to be any MSP announced for Rabi millets.
- Higher MSP for less water consuming crop is needed: In the process, it will be crucial to take into consideration the estimates of irrigation water need for specific crops, redefine the Rabi basket by including millets, and declare a higher MSP for less water-consuming crops vis-à-vis the high-water consuming crops.
Nutritional security in MSP calculation
- Nutritional security is not included in MSP calculation: The other consideration that is missing from the MSP formula is the consideration of the nutritional security. Ideally, the MSP regime should remunerate those crops that have a higher nutritional value per unit of resource use.
- Rabi crops are more water efficient: Ragi is the most efficient water user in producing calories. Bajra followed by wheat and ragi are the better performers in terms of water efficiency in producing iron. For the case of fiber, ragi is the most water efficient crop followed by barley and maize demonstrating the same water efficiency.
- Rabi crops are nutrition rich: Maize is the most efficient water user in producing carbohydrates with ragi being second and wheat third. With reference to fat production, bajra takes the first position followed by ragi and wheat. Ragi is the best performer in the case of calcium production. Wheat and ragi do equally well with phosphorus production per unit of water at the margin.
- Missing MSP estimate: However, so far, the MSP formula has not taken into consideration the health and the nutritional aspect. Irrespective of the season, the nutritional aspect needs to be figured into the MSP recommendations, and more nutritional crops should command higher support prices.
Conclusion
- Present MSP regime is biased in Favor of rice and wheat. MSP can be utilized as great tool to achieve crop diversification by incentivizing cultivation of water efficient and nutrition rich millets. India can achieve the regional as well as financial balance in distribution of MSP by proper estimation of MSP and promotion accordingly.
Mains Question
How is MSP calculated? Analyse the linkages of MSP and water conflict and suggest the solution to overcome the water inefficiency by MSP.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: private investment in manufacturing and economic growth
Context
- Last month, Finance Minister asked captains of industry what was holding them back from investing in manufacturing. She likened industry to Lord Hanuman from the Ramayana by stating that industry did not realize its own strength and that it should forge ahead with confidence. She said, “This is the time for India, we cannot miss the bus”.
What is present situation of private investment?
- Tax cut rate of domestic companies: In the hope of revitalizing private investment, the government had in September 2019 cut the tax rate for domestic companies from 30% to 22% if they stopped availing of any other tax SOP (standard operating procedure).
- Weak private investment: Expert says that Indian private sector investment has been weak for almost a decade now. If we look at drivers of economic growth right now, there are amber lights flashing. The export story will be under threat because of the global slowdown, the government’s ability to support domestic demand would also be limited as the fiscal deficit comes down.
- Impact of k-shaped recovery: Because of the K-shaped recovery, private consumption is only concentrated in some parts of the income pyramid.
- Investment to GDP ratio: As in the June edition of the Ministry of Finance’s Monthly Economic Review, the fixed investment to GDP ratio was 32% in 2021-22. However, there is need for caution in reading the most recent data, as they are subject to revision.
- The National Accounts Statistics: It provides disaggregation of gross capital formation (GCF) by sectors, type of assets and modes of financing; over 90% of GCF consists of fixed investments.
- No change in investment distribution: The investment distribution has hardly changed over the last decade, with the public sector’s share remaining 20%.
- Fall in share of agriculture and industry: Between 2014-15 and 2019-20, the shares of agriculture and industry in fixed capital formation/GDP fell from 7.7% and 33.7% to 6.4% and 32.5%, respectively.
- Rise in service sectors: Services’ share rose to 52.3% in 2019-20 compared to 49% in 2014-15.The rise in the services sector is almost entirely on transport and communications. The share of transport has doubled from 6.1% to 12.9% during the same period. Within transportation, it is mostly roads.
- Decline in the share of investment: Its share in the investment ratio (column 2.1) fell from 19.2% in 2011-12 to 16.5% in 2019-20. This indicates that ‘Make in India’ failed to take off, import dependence went up, and India became deindustrialised. Import dependence on China is alarming for critical materials such as fertilizers, bulk drugs (active pharmaceutical ingredients or APIs) and capital goods. Instead of boosting investment and domestic technological capabilities, the ‘Make in India’ campaign frittered away time and resources to raise India’s rank in the World Bank’s Ease of Doing Business Index.
- Decline in foreign capital in GFC: The contribution of foreign capital to financing GCF fell to 2.5% in 2019-20 from 3.8% in 2014-15 (or 11.1% in 2011-12). With declining investment share, industrial output growth rate fell from 13.1% in 2015-16 to a negative 2.4% in 2019-20, as per the National Accounts Statistics.
What is Consumer’s demand situation?
- Average Consumer sentiment index: Private companies invest when they are able to estimate profits, and that comes from demand. The Centre for Monitoring Indian Economy’s (CMIE) consumer sentiment index is still below pre-pandemic levels but is far higher than what was seen 12-18 months ago.
- Buoyant Aggregate demand: RBI’s Monetary policy report dated September 30 says, Data for Q2 (ended Sept) indicate that aggregate demand remained buoyant, supported by the ongoing recovery in private consumption and investment demand. It shows that seasonally adjusted capacity utilization rose to 74.3% in Q1 the highest in the last three years.
- High household savings: Along with household savings intentions remaining high, might hold the key to the investment cycle kicking in.
Conclusion
- Both public and private investment is necessary for sustainable growth trajectory of any economy. Global uncertainty, Ukraine war, oil prices have added to the skepticism of private investors. However, India’s macroeconomic performance is much better than those of developed and developing economies. Private investors must take these into account before holding back their investment.
Mains Question
Q. What role private investment plays in Indian economy? Analyse the post-pandemic private investment situation in India?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: FATF
Mains level: FATF, grey listing and blacklisting, Money laundering and terror financing
Context
- On October 21, the Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog, announced the removal of Pakistan from its Grey List. The announcement was expected.
What is FATF?
- Inter-governmental organization: The FATF, a 39-member inter-governmental organization with its headquarters in Paris, was set up in 1989 by the Group of Seven (G7) countries with the aim of setting global standards for countering the menace of money laundering.
- Terror financing included under FATF mandate: Following the terror attacks on September 11, 2001, the objective of countering the financing of terrorism was added to the FATF’s mandate. Later, its objectives were further expanded to counter the financing of proliferation of weapons of mass destruction.
How FATF functions?
- Three level mandate: The FATF seeks to fulfil its three-pronged mandate by drawing up a list of guidelines. Known as the FATF Recommendations or FATF Standards, these are meant to ensure a coordinated global response to prevent.
- organized crime,
- corruption and
- Terrorism
- Domestic plus international regulatory measures: They encompass a range of domestic legislative, regulatory and enforcement actions, as well as international cooperation measures, that states are expected to adopt and implement.
- Consensus based decision: The FATF and its associate, or regional, members such as the Asia Pacific Group on Money Laundering (APG) take their decisions on the basis of consensus. More than 200 countries and jurisdictions are committed to implementing the FATF’s recommendations.
- Monitoring the adherence to recommendations: The FATF monitors adherence to its recommendations by periodic evaluations of the anti-money laundering (AML), combating financing of terrorism (CFT) and proliferation financing (PF) regimes of member countries and jurisdictions which voluntarily submit to its monitoring.
- Strategic deficiencies by countries: Countries which exhibit strategic deficiencies in their AML/CFT/PF regimes are placed under a scheme of “increased monitoring” informally known as Grey Listing.
- Action plan to address the deficiencies: States placed under the Grey List are expected to swiftly put in place the requisite measures to address their deficiencies on the basis of Action Plans drawn up and evaluated through a process of consultation with the FATF.
- Serious strategic deficiency: States that exhibit serious strategic deficiencies in their AML/CFT/ PF regimes are placed under a Black List formally known as High-Risk Jurisdictions subject to a Call for Action.
- Serious economic consequences may follow: While Grey Listing amounts to a warning, Black Listing entails serious economic consequences by making it incumbent on governments, international lenders and commercial entities to conduct enhanced due diligence checks while transacting business with the designated countries and, in extreme cases, apply “counter-measures” against offenders.
Present status of listing by FATF?
- Grey listing: Following the removal of Pakistan, there are 23 countries on the FATF’s Grey List.
- Black listing: There are only three countries on the Black List, North Korea, Iran and Myanmar. These listing processes of the FATF are driven predominantly by the pulls and pressures of international power politics and not merely by technical parameters.
How Pakistan has been grilled by FATF for Terror financing?
- In 2008 Pakistan removed from listing: Pakistan has been placed in and removed from the Grey List in the past too. The first time was from February, 2008 to June, 2010, when it was removed from the list after it supposedly demonstrated progress in improving its AML/AFT regime.
- Mumbai terror attack and grey list: The terrorist attacks in Mumbai on November 26, 2008 took place while Pakistan was on the Grey List for the first time. The second time was from February, 2012 to February, 2015, by the end of which period it had supposedly made significant progress in improving its AML/CFT regime.
- Osama bin laden killing: The elimination of Osama bin Laden in the American raid on Abbottabad on May 2, 2011 took place after Pakistan’s exit from the Grey List for the first time and before its placement on the list for the second time.
- From 2018-2022: Pakistan was placed in the Grey List for the third time in June, 2018 and remained there till October, 2022. During this period, it was compelled to put in place several legislative, administrative and regulatory measures to improve its compliance with international AML/CFT standards.
- Action against individual and organisations: In recent years, there has been increasing realisation among FATF members that it is the effectiveness of action taken against individuals and entities of concern rather than pro-forma technical compliance” that should form the basis of judging the extent of adherence to FATF standards.
- Conviction of hafiz Saeed: It is this more realistic approach coupled with the implicit threat of being moved from the Grey List to the Black List that finally compelled Pakistan to prosecute, convict, fine and jail, on terrorism financing charges, Lashkar-e-Tayyaba (LeT) Amir, Hafiz Muhammad Saeed, LeT’s chief operational commander, Zakiur Rehman Lakhvi and Sajid Majeed aka Sajid Mir, “operational manager” of the 26/11 Mumbai attacks, after having pronounced him missing and dead.
- Jaish-e-Mohammed: A disingenuous attempt by Pakistan to persuade a visiting FATF verification team in August-September 2022 that Jaish-e-Mohammed (JeM) Amir, Maulana Masood Azhar, had escaped to Afghanistan was strongly countered by a spokesman of the Afghan Taliban.
How Pakistan manages pressure form FATF?
- with the support of USA: It is well known that much of the diplomatic heavy lifting to place Pakistan in the Grey List in June 2018 and keep it on the list for an extended period of time was done by the US. There had been a feeling among those following developments at the FATF that American pressure on Pakistan would continue till such time as the US needed Pakistan to bring the Afghan Taliban to the negotiating table and once the US withdrawal from Afghanistan was completed, the pressure on Pakistan would ease. Subsequent developments have validated this assessment.
- Help of China and turkey: Although the threat of being moved from the Grey List to the Blacklist remained hanging over Pakistan’s head, this was never a realistic possibility, considering the likely opposition to any such move by Pakistan’s staunch friends in the FATF, such as China, Malaysia, Turkey and Saudi Arabia
Conclusion
- India will have to continue mustering all available instruments and options to deny Pakistan operating space to wield the jihadi weapon, till such time as there is convincing evidence of a consensus among the generals in Rawalpindi that the weapon has outlived its utility and needs to be renounced once and for all.
Mains Question
How FATF is useful international forum for fight against terrorism? How was Pakistan forced by FATF to take actions against mastermind of 26/11 attack?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Battery Swapping
Mains level: Read the attached story
Battery Swapping could only be leveraged up to a certain limit and was not a complete solution to push electric vehicle (EV) adoption says some auto industry.
What is Battery Swapping?
- Battery swapping is a mechanism that involves exchanging discharged batteries for charged ones.
- This provides the flexibility to charge these batteries separately by de-linking charging and battery usage, and keeps the vehicle in operational mode with negligible downtime.
- Battery swapping is generally used for smaller vehicles such as two-wheelers and three-wheelers with smaller batteries that are easier to swap, compared to four-wheelers and e-buses, although solutions are emerging for these larger segments as well.
What is BaaS?
- Battery-as-a-service (BaaS) is seen as a viable charging alternative.
- Manufacturers can sell EVs in two forms: Vehicles with fixed or removable batteries and vehicles with batteries on lease.
- If you buy an electric scooter with battery leasing, you do not pay for the cost of the battery—that makes the initial acquisition almost 40% cheaper.
- Users can swap drained batteries for a fully charged one at a swap station. The depleted batteries are then charged on or off-site.
- The advantages of swapping include low downtimes for commercial fleets, reduced space requirements, and lower upfront costs.
- It is also a viable solution for those who don’t have parking spots at home.
Draft Battery Swapping Policy 2021: Key Proposals
- Rationalizing taxes on battery: The draft policy has suggested that the GST Council consider reducing the differential across the tax rates on Lithium-ion batteries and electric vehicle supply equipment. Currently, the tax rate on the former is 18 per cent, and 5 per cent on the latter.
- Incentivization for swapping enabled vehicles: The policy also proposes to offer the same incentives available to electric vehicles that come pre-equipped with a fixed battery to electric vehicles with swappable batteries. The size of the incentive could be determined based on the kWh (kilowatt hour) rating of the battery and compatible EV.
- Terms of contracts for battery providers: The government will specify a minimum contract duration for a contract to be signed between EV users and battery providers to ensure they continue to provide battery swapping services after receiving the subsidy.
- Public battery charging stations: The policy also requires state governments to ensure public battery charging stations are eligible for EV power connections with concessional tariffs. It also proposes to install battery swapping stations at several locations like retail fuel outlets, public parking areas, malls, kirana shops and general stores etc.
- Tariff rationalization: It also proposes to bring such stations under existing or future time-of-day (ToD) tariff regimes, so that the swappable batteries can be charged during off-peak periods when electricity tariffs are low.
- Registration ease: Transport Departments and State Transport Authorities will be responsible for easing registration processes for vehicles sold without batteries or for vehicles with battery swapping functionality.
- Unique identification number (UIN): The policy also proposes to assign a UIN to swappable batteries at the manufacturing stage to help track and monitor them. Similarly, a UIN number will be assigned to each battery swapping station.
- Locations: The NITI Aayog has proposed that all metropolitan cities with a population of more than 40 lakh will be prioritized for the development of battery swapping networks under the first phase, which is within 1-2 years of the draft policy getting finalized.
Why hasn’t BaaS taken off yet?
- Hefty taxes: There are economic and operational constraints. Energy service providers offering swapping solutions have to charge 18% goods and services tax (GST) for swapping, compared to 5% GST on the purchase of an EV.
- No incentives yet: Additionally, the government’s FAME-II incentives are not offered to vehicles sold with BaaS or swap station operators.
- Lack of interoperability infrastructure: While these are economic disadvantages compared to direct charging solutions, the lack of a dense and interoperable battery swap infrastructure has also hindered the roll-out.
Issues highlighted by industry
- Swapping will require a great deal of battery standardisation which may reduce innovation and would curb investments.
- Other concerns include accountability for a sub-optimal battery brought in to a swapping station or if it caught fire.
- Battery swapping has reduced initial investments by EV owners.
Issues with BaaS
- Standardization of specifications: There is a need for standardization of safety specifications as well as the battery.
- Safety hazard: Swapping in the various permutations and combinations of batteries at a station where they have not been tested for compatibility could lead to safety hazards.
- Non-competitive nature: Also, mandating only one type of battery to be eligible for concessions would be disadvantageous to many players.
Significance of battery swapping
- High Cost of EVs: An EV, by industry standards, is 1.5-2x costlier than IC Engine counterpart and at least half the cost is from the battery pack.
- Cost reduction: Many manufacturers are offering batteries separately from a vehicle, reducing the cost. In that case, a fleet owner can buy vehicles without battery and utilize battery swapping.
- Range Anxiety: Another major reason stopping people from buying EVs is range anxiety, or in simple terms, the fear of battery getting empty without finding a charging station.
- Inadequate charging infrastructure: Unlike petrol pumps, EV charging stations are rare to spot and that further increases the range anxiety exponentially, especially while going on a road trip.
- Hazard management: In case of a Swapping Station, one can simply locate a station, go and replace the empty battery with a new one.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ASEAN
Mains level: Military coup in Myanmar
Foreign ministers from member countries of the Association of Southeast Asian Nations (ASEAN) are meeting to discuss an intensifying crisis in Myanmar, 18 months after agreeing a peace plan with its military rulers.
What is ASEAN?
- ASEAN is a political and economic union of 10 member states in Southeast Asia.
- It brings together ten Southeast Asian states – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam – into one organisation.
- It was established on 8th August 1967 in Bangkok, Thailand with the signing of the Bangkok Declaration by the founding fathers of the countries of Indonesia, Malaysia, Thailand, Singapore, and the Philippines.
- The preceding organisation was the Association of Southeast Asia (ASA) comprising of Thailand, the Philippines, and Malaysia.
- Five other nations joined the ASEAN in subsequent years making the current membership to ten countries.
Why is the meeting happening?
- ASEAN’s peace effort is the only official diplomatic process in play.
- There has been a failure with the junta unwilling to implement a so-called “five-point consensus” that it agreed to with ASEAN in April 2021.
- The United Nations has backed the ASEAN plan, but with suspicion the generals are paying lip service and buying time to consolidate power and crush opponents before a 2023 election.
- For ASEAN to remain credible as a mediator, it may need to present a new strategy before the summit.
What is the consensus?
- Immediate end of hostilities
- All parties engaging in constructive dialogue
- Allowing an ASEAN envoy to mediate and meet all stakeholders, and
- ASEAN to provide humanitarian assistance.
- So far, the only success cited by ASEAN chair Cambodia has been allowing some humanitarian access, but that has been limited and conditional.
How has the Junta (Military govt. in Myanmar) responded?
- The military government has accused critical ASEAN members of meddling and warned them not to engage.
- It has accused its opponents of trying to sabotage the ASEAN plan and has justified military offensives as necessary to secure the country and enable political talks.
- Instead of advocating for the five-point ASEAN plan, the generals have instead been pushing a five-step roadmap of their own towards a new election, with few similarities.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GM Mustard
Mains level: GM crops for cultivation
The Genetic Engineering Appraisal Committee (GEAC) has yet again cleared the proposal for commercial cultivation of genetically modified (GM) mustard.
What exactly is GM (Hybridized) Mustard?
- Hybridization involves crossing two genetically dissimilar plant varieties that can even be from the same species.
- The first-generation (F1) offspring from such crosses tend to have higher yields than what either parent can individually give.
- Such hybridization isn’t easy in mustard, as its flowers have both female (pistil) and male (stamen) reproductive organs, making the plants largely self-pollinating.
- Since the eggs of one plant cannot be fertilised by the pollen grains from another, it limits the scope for developing hybrids.
How has hybridisation been achieved in mustard?
- This has been done by genetic modification (GM).
- Scientists at Delhi University’s Centre for Genetic Manipulation of Crop Plants (CGMCP) have developed the hybrid mustard DMH-11.
- It contains two alien genes isolated from a soil bacterium called Bacillus amyloliquefaciens.
- The first gene (‘barnase’) codes for a protein that impairs pollen production and renders the plant into which it is incorporated male-sterile.
- This plant is then crossed with a fertile parental line containing, in turn, the second ‘barstar’ gene that blocks the action of the barnase gene.
- The resultant F1 progeny is both high-yielding and also capable of producing seed/ grain, thanks to the barstar gene in the second fertile line.
How did researchers achieve this?
- The CGMCP scientists have deployed the barnase-barstar GM technology to create what they say is a robust and viable hybridisation system in mustard.
- This system was used to develop DMH-11 by crossing a popular Indian mustard variety ‘Varuna’ (the barnase line) with an East European ‘Early Heera-2’ mutant (barstar).
- DMH-11 is claimed to have shown an average 28% yield increase over Varuna in contained field trials carried out by the Indian Council of Agricultural Research (ICAR).
What has GEAC now done?
- GEAC has recommended the environmental release of DMH-11 for its seed production and testing prior to commercial release.
- In other words, it has given the green signal for commercial cultivation by farmers, with production of seed material being the first step.
- This move was earlier vetoed in 2016 by Environment Ministry.
Why did it take so long for GEAC to clear?
- There has been opposition to GM crops in general, from assorted green groups.
- Major concern is the presence of a third ‘bar’ gene, which makes GM mustard plants tolerant to the spraying of glufosinate ammonium, a chemical used for killing weeds.
- This, the opponents allege will cause displacement of manual labour engaged in weeding by promoting use of chemical herbicides.
- Another concern is over GM mustard threatening or undermining the population of honey bees.
- Mustard flowers are a source of nectar for honey bees and many other pollinator insects.
Try this PYQ:
Q.With reference to the Genetically Modified mustard (GM mustard) developed in India, consider the following statements:
- GM mustard has the genes of a soil bacterium that give the plant the property of pest-resistance to a wide variety of pests.
- GM mustard has the genes that allow the plant cross-pollination and hybridization.
- GM mustard has been developed jointly by the IARI and Punjab Agricultural University.
Which of the statements given above is/are correct?
(a) 1 and 3 only
(b) 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Post your answers here.
Back2Basics: Genetic Engineering Appraisal Committee (GEAC)
- The GEAC is a statutory body notified under the Environment (Protection) Act, 1986.
- It was formed as the Genetic Engineering Approval Committee and was renamed to its current name in 2010.
- It functions under the Ministry of Environment, Forests & Climate Change.
- The body regulates the use, manufacture, storage, import, and export of hazardous microorganisms or genetically-engineered organisms and cells in India.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Mangarh Massacre of 1913
Mains level: Tribal revolts in India
Ahead of PM Modi’s visit to Mangarh Dham in Banswara district, Rajasthan CM has sought the declaration of the memorial for tribals as a monument of national importance.
About Mangarh Massacre
- Mangarh Dham is known for the massacre of tribals by the British Indian Army in 1913.
- This place is widely referred to as Adivasi Jallianwala.
- About 1,500 Bhil tribals and forest dwellers were killed at Mangarh on November 17, 1913, when the British Indian Army opened fire on the protesters.
- The people were gathered to demand abolition of bonded labour system and relaxation in heavy agricultural taxes imposed by the rulers of princely states.
- The tribals in the southern Rajasthan region were led by social reformer Govind Guru.
Course of events
- Govind Guru started his movement among Bhils in the early 1890s.
- The movement had, as its religious centrepiece, the concept of a fire god, which required his followers to raise sacred hearths in front of which Bhils pray while performing the purifying havan called dhuni.
- In 1903, the guru set up his main dhuni on Mangadh Hill.
- Mobilised by him, the Bhils placed a charter of 33 demands before the British by 1910 primarily relating to forced labour, high tax imposed on Bhils and harassment of the guru’s followers by the princely states.
- The Bhil struggle for justice under Govind Guru took a serious turn after the British and local rulers refused to accept the demands and tried to break the Bhagat movement in 1913.
Try this PYQ:
Q. Which amongst the following provided a common factor for tribal insurrection in India in the 19th century?
(a) Introduction of a new system of land revenue and taxation of tribal products.
(b) Influence of foreign religious missionaries in tribal areas.
(c) Rise of a large number of money lenders, traders and revenue farmers as middlemen in tribal areas.
(d) The complete disruption of the old agrarian order of the tribal communities.
Post your answers here.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Khangkhui Cave
Mains level: NA
A colony of bats was evicted from a Khangkhui Mangsor cave system in Manipur with a Palaeolithic past to make it tourist-friendly.
Khangkhui Mangsor
- The Khangkhui, locally called Khangkhui Mangsor, is a natural limestone cave about 15 km from Ukhrul, the headquarters of Ukhrul district.
- Excavations carried out by Manipur’s archaeologists had revealed the cave was home to Stone Age communities.
- The cave was also used as a shelter by the local people during the Second World War after the Japanese forces advanced to Manipur and the adjoining Nagaland.
Why in news?
- The cave housed large roosting populations of bats belonging to the Rhinolophidae and Hipposideridae families.
- They were however killed and evicted from the Khangkhui cave after 2016-17 purportedly to make it more tourist-friendly.
Do you know?
The longest is Krem Liat Prah in the Jaintia Hills, which is 30.957 km long. The word “Krem” means cave in the local Khasi language
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Promoting Hindi language and associated issues
Context
- The unveiling of the Hindi editions of the first professional MBBS books by Union Home Minister Amit Shah in Bhopal has stirred anti-Hindi agitations, with the Opposition, especially in the South, contending that the move is nothing more than a poll gimmick.
- Example of Non-English countries: Supporters of the move are quoting examples from China, Japan, Ukraine, Russia, and Norway – countries where official languages are the sole medium of instruction in all the technical and non-technical courses.
- Education in mother tongue is effective: If they can do so, why can’t we, they argue, especially as it is an established fact that imparting education in a student’s mother tongue is effective for learning.
Why English is best medium of English education?
- Teaching in local plus English language: Fifty-two medical colleges, out of the total 170 colleges on mainland China, whose graduates can attempt the USMLE (the entrance exam to practice in the US), teach in both Chinese and English. There has been a steep rise in the number of parents interested in enrolling their children – at just three years old – in ESL (English as a Second Language) courses.
- Less resources in Hindi: It is unwise to compare the status of Hindi to Chinese or German, given India’s diversity. Moreover, Hindi, or any other vernacular language, for that matter, offers far fewer resources to support the job-seeking young populace. Learning English, therefore, comes with a promise of roti, kapda, makaan (food, clothes, shelter.)
- Higher demand for English Medium: A few years ago, when newspapers reported on the closing down of government schools in Tamil Nadu, one of the major reasons cited was parents’ preoccupation with English-medium schools – leading them to deny free cash and food and admit their kids to low-end, mediocre English schools, instead.
- English is a great leveller: When it comes to higher education, English is a great leveller, allowing dialogue to continue with the rest of the world. Medicine, as evidence-based as it is, is constantly evolving with the introduction of novel research. Treating cases sometimes requires consulting multiple books, research papers, and journal articles, for which a sound system of translation needs to be established before we can even begin thinking about phasing out English.
- Issue of Translation: The people involved in the translation process spoke of two things, First, instead of “translation”, the books have been transliterated. The medical terminology remains the same; sentences have only been translated for easier reading. That too, in the most mainstream dialect of Hindi. Second, these books are to be used as “bridge books”, and not as replacements for the English ones, designed to address the initial hiccups students are bound to face.
- No clarity on roadmap: The initial announcement also fails to account for the necessary infrastructure. There has been no clarity on whether or how these translations will be incorporated as reading materials, and how they will evolve or change with time. Whether standard books like Harrison and Robbins would also be translated is anyone’s guess. Translating these tomes only once would not suffice as newer editions every three to five years incorporate significant changes.
- Training of teachers and conferences: Professors and other teaching staff would also need to be trained. Most of all, what about medical conferences, the staple of a medical student? Would they be organised in Hindi moving forward?
- Our medical industry is yet to develop: While basing our argument only on language, we often forget that Chinese healthcare is self-sufficient when it comes to research and protocols, or that Germany has primary resources available in their own language. Our focus right now should be to develop primary resources. Our medical industry is at way too nascent a stage to be speaking of language.
Conclusion
- Offering extra evening classes as done by AIIMS, Delhi could have been a better substitute given that the strength of students who struggle with English makes up about one to two per cent of the entire batch. Besides, no strict distinction exists between Hindi and non-Hindi-speaking states as most institutions have a portion of seats that are filled up by a pan-India entrance exam. Our focus should be on quality of education instead of medium of instruction.
Mains Question
Q. Medical education in English is more viable than local language. Explain. Why Government of India Supports the Medical education in Hindi?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Rising oil prices and its effects on Economy
Context
- The two major irritants for India this year have been oil and the dollar. The two are a heady cocktail that has distorted all economic forecasts creating volatility that has never been witnessed earlier. Their impact is being felt across bond and stock markets, affecting the entire system. As a result, the RBI and the government have had to work overtime to mitigate the adverse effects on the economy.
- Unpredictable Prices: When the Ukraine war broke out, oil crossed the $120 mark (in April and again in June). It was expected that $150 was not far off. However, the range of $100-110 was restored and soon enough the price was back to the Nineties as all global commodity prices cooled off, even as the Ukraine war continued.
- Rising requirement of Europe: With the winter months approaching and Europe dependent on natural gas for heating, which now appears to be in jeopardy due to Russia turning off the taps, oil has received a boost even though the continent is looking more at coal.
- Reduction in production by OPEC: Add to this the fact that OPEC and its allies have decided to lower production by 2 million barrels a day and there is panic again. This shock is external over which neither the government nor RBI have any control.
- Growing Import Bills: High oil prices mean many things. Crude has a share of 30-33 per cent in total imports and any hike in prices increases the import bill. With exports declining due to the slowdown in global growth and imports increasing due to oil, the trade deficit and current account deficit will widen further. The trade deficit for the first half is $150 billion and can touch $300 billion this year at this strike rate.
- Possibility of Balance of Payment: This creates a problem for the current account deficit with components like software and remittances slowing down due to the recession in the west. Therefore, a balance of payments problem will surface. Ultimately it depends on how high oil will go. The RBI has assumed a $100/barrel. This looks reasonable at this point, but anything higher can create problems on the currency front.
- Increasing Inflation: Inflation per se will be an issue when prices are left to the market like ATF or LPG. But in the case of petrol and diesel, it will be a conundrum for the government. If the status quo prevails on price transmission, then oil marketing companies will have to bear the losses. If the government allows the market to correct, inflation will increase as it will also feed into intermediary costs such as freight.
- Higher input cost: User industries of oil like chemicals, plastics and fertilizers will face a problem again. Higher input costs will put pressure on profit margins and any pass through will be inflationary.
- Windfall tax may increase: The government would probably once again revisit the windfall tax on crude (as has been recently done) to examine if there is any additional revenue to be garnered. Such an environment always tends to spook markets.
- Rising bond yields: Bond yields move up every time oil prices rise while stock markets turn volatile normally in the downward direction.
How rising dollar prices affects India?
- Rupee is weakening: There is the dollar conundrum which should be seen in conjunction with the oil. The dollar has been strengthening against all currencies. As the Fed tightens rates, which will carry on through 2023, the dollar will become stronger. Other countries are already in a weak economic zone and are tightening rates with a lag. The rupee is bearing the brunt of this development. There is no escape as the RBI intervention in any form can only temporarily support the decline in the rupee. In the last month or so, since the rupee crossed the 80 mark and gone past 83.
- Negative sentiment of market: Another factor that will complicate matters is expectations. The recent news, for example, of global players deciding not to include Indian bonds in global indices might add to the negative sentiment in the market and exert pressure on the rupee.
- Imported inflation: The rupee depreciation also leads to importing inflation. All goods imported will come in at a higher rupee cost which will in turn push the RBI to act further.
- Less possibility of high export: The weak rupee may not quite help exports because the competitive advantage that normally comes along with such depreciation would be low given that other currencies are also declining.
- Trade deficit will rise: Imports are unlikely to slow down as a growing economy requires inputs and raw materials. This will mean further pressure on the trade deficit. The government will gain at the margin as customs collections increase.
- Volatile investors: The critical reaction will be that of investors. If foreign portfolio investors withdraw then there will be further pressure on the rupee while inflows would help to cushion the rupee.
- Centre may lose on revenue: State governments will be better off as their VAT collections would increase automatically. However, the Centre may not gain as the excise duty is a fixed rate.
Conclusion
- One can never tell as almost all forecasters have been proved wrong this year. The theory that RBI can intervene and protect certain levels of currency has its limitations. These travails have to be responded to as they cannot be controlled.
Mains Question
Q. How rising dollar and oil prices affects the macroeconomic stability in India? What are the steps taken by RBI and GOI to manage the macroeconomic stability?
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From UPSC perspective, the following things are important :
Prelims level: CBG
Mains level: Stubble burning, air pollution and solutions, CBG
Context
- The beginnings of a renewable energy revolution rooted in agriculture are taking shape in India with the first bio-energy plant of a private company in Sangrur district of Punjab having commenced commercial operations on October 18. It will produce Compressed Biogas (CBG) from paddy straw, thus converting agricultural waste into wealth.
Background
- Stubble burning every year in north and northwest: It has become common practice among farmers in Punjab, Haryana and western Uttar Pradesh to dispose of paddy stubble and the biomass by setting it on fire to prepare fields for the next crop, which has to be sown in a window of three to four weeks. This is spread over millions of hectares.
- Resultant smog polluting environment: The resultant clouds of smoke engulf the entire National Capital Territory of Delhi and neighbouring States for several weeks between October to December. This plays havoc with the environment and affects human and livestock health.
- Stubble burning practice spreading rapidly across the country: Though paddy stubble burning in northwest India has received a lot of attention because of its severity of pollution, the reality is that crop residue burning is spreading even to rabi crops and the rest of the country. Unless these practices are stopped, the problem will assume catastrophic proportions.
What is Stubble Burning?
- Stubble (parali) burning is a method of removing paddy crop residues from the field to sow wheat from the last week of September to November.
- It is usually required in areas that use the combined harvesting method which leaves crop residue behind.
- This practice mostly carried out in Punjab, Haryana and UP contributes solely to the grave winter pollution in the national capital.
How stubble burning impacts environment and Human health?
- Deteriorates air quality: The process of burning farm residue is one of the major causes of air pollution in parts of north India, deteriorating the air quality.
- Source of various harmful gases: Stubble burning is a significant source of carbon dioxide (CO2), volatile organic compounds (VOCs), nitrogen oxides (NOx) and hydrocarbons (HC).
- Air Pollution: Stubble burning emits toxic pollutants in the atmosphere containing harmful gases like Carbon Monoxide (CO), methane (CH4), carcinogenic polycyclic aromatic hydrocarbons, volatile organic compounds (VOC). These pollutants disperse in the surroundings and eventually affect air quality and people’s health by forming a thick blanket of smog. Along with vehicular emissions, it affects the Air Quality Index (AQI) in the national capital and NCR.
- Soil degradation: Soil becomes less fertile and its nutrients are destroyed when the husk is burned on the ground. Organic content of soil is completely destroyed. Stubble burning generates heat that penetrates into the soil, causing an increase in erosion, loss of useful microbes and moisture.
Some of the measures taken by Government for the effective prevention and control of stubble burning
- The Commission for Air Quality Management: The Commission for Air Quality Management in National Capital Region and Adjoining Areas (CAQM) had developed a framework and action plan for the effective prevention and control of stubble burning,
- In-situ management: The framework/action plan includes in-situ management, i.e., incorporation of paddy straw and stubble in the soil using heavily subsidized machinery (supported by crop residue management (CRM) Scheme of the Ministry of Agriculture and Farmers Welfare).
- Ex-situ management: Ex-situ CRM efforts include the use of paddy straw for biomass power projects and co-firing in thermal power plants, and as feedstock for 2G ethanol plants, feed stock in CBG plants, fuel in industrial boilers, waste-to-energy (WTE) plants, and in packaging materials, etc.
- Awareness generation programme: Additionally, measures are in place to ban stubble burning, to monitor and enforce this, and initiating awareness generation.
- Project by NITI Aayog along with FAO: NITI Aayog approached FAO India in 2019 to explore converting paddy straw and stubble into energy and identify possible ex-situ uses of rice straw to complement the in-situ programme.
- Rice straw for producing CBG: A techno-economic assessment of energy technologies suggested that rice straw can be cost-effective for producing CBG and pellets. Pellets can be used in thermal power plants as a substitute of coal and CBG as a transport fuel.
- SATAT initiative: With 30% of the rice straw produced in Punjab, a 5% CBG production target set by the Government of India scheme, “Sustainable Alternative Towards Affordable Transportation (SATAT)” can be met. It could also increase local entrepreneurship, increase farmers’ income and reduce open burning of rice straw.
- Encouraging private players to produce CBG more and reduce CO2 emissions: Verbio India Private Limited, a 100% subsidiary of the German Verbio AG, got approval from the Punjab government in April 2018 to set up a bio-CNG project that will utilise about 2.1 lakh tonnes of a total of 18.32 million tonnes of paddy straw annually. The plant will use one lakh tonnes of paddy straw produced from approximately 16,000 hectares of paddy fields. Paddy residue will be collected from this year to produce 33 tons of CBG and 600-650 tonnes of fermented organic manure/slurry per day this will reduce up to 1.5 lakh tonnes of CO2 emissions per year.
FAO Study on developing crop residue supply chain
- Use of Rice straw: In technical consultations with the public and private sectors, the FAO published its study on developing a crop residue supply chain in Punjab that can allow the collection, storage and final use of rice straw for other productive services, specifically for the production of renewable energy.
- Required Investment and benefits farmers: The results suggest that to mobilise 30% of the rice straw produced in Punjab, an investment of around ₹2,201 crore ($309 million) would be needed to collect, transport and store it within a 20-day period. This would reduce greenhouse gas (GHG) emissions by about 9.7 million tonnes of CO2 equivalent and around 66,000 tonnes of PM2.5. Further, depending on market conditions, farmers can expect to earn between ₹550 and ₹1,500 per ton of rice straw sold, depending on market conditions.
Interesting to read: Compressed Bio Gas (CBG)
- Biogas is produced naturally through a process of anaerobic decomposition from waste / bio-mass sources like agriculture residue, cattle dung, sugarcane press mud, municipal solid waste, sewage treatment plant waste, etc.
- After purification, it is compressed and called CBG, which has a pure methane content of over 95%.
- CBG is exactly similar to the commercially available natural gas in its composition and energy potential.
- With calorific value (~52,000 KJ/kg) and other properties similar to CNG, CBG can be used as an alternative, renewable automotive fuel.
- Given the abundance of biomass in the country, CBG has the potential to replace CNG in automotive, industrial and commercial uses in the coming years.
Conclusion
- Encouraging private players for producing CBG appears to be a first win-win initiative in the form of environmental benefits, renewable energy, value addition to the economy, farmers’ income and sustainability. This initiative is replicable and scalable across the country and can be a game changer for the rural economy.
Mains Question
Q. What is Stubble burning? Discuss the measures taken by Government for the effective prevention and control of stubble burning and producing CBG could be a win-win situation.
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From UPSC perspective, the following things are important :
Prelims level: FCRA
Mains level: Money laundering
Recently, the Ministry of Home Affairs amended certain provisions of the Foreign Contribution (Regulation) Act (FCRA).
- The Ministry had made the FCRA rules tougher in November 2020, making it clear that NGOs (Non-Government Organizations) which may not be directly linked to a political party but engage in political action like bandhs, strike or road blockades will be considered of political nature if they participate in active politics or party politics. According to the law, all NGOs receiving funds have to registered under the FCRA.
- The move comes after the government enhanced the import duty on gold import from 7.5 % to 12.5 % in a bid to discourage import of gold that leads to increase in trade deficit and puts pressure on the currency and forex reserves.
- An increase in import duty on gold will lead to increase in cost of import and discourage its import and consumption.
What is the FCRA?
- About:
- The FCRA was enacted during the Emergency in 1976 in an atmosphere of apprehension that foreign powers were interfering in India’s affairs by pumping in funds through independent organisations.
- These concerns had been expressed in Parliament as early as in 1969.
- The law sought to regulate foreign donations to individuals and associations so that they functioned “in a manner consistent with the values of a sovereign democratic republic”.
- Objectives:
- It requires every person or NGO wishing to receive foreign donations to be registered under the Act, to open a bank account for the receipt of the foreign funds and to utilise those funds only for the purpose for which they have been received and as stipulated in the Act.
- The Act prohibits receipt of foreign funds by candidates for elections, journalists or newspaper and media broadcast companies, judges and government servants, members of legislature and political parties or their office-bearers, and organisations of a political nature.
- Amendments:
- It was amended in 2010 to “consolidate the law” on utilisation of foreign funds, and “to prohibit” their use for “any activities detrimental to national interest”
- The law was amended again by the current government in 2020, giving the government tighter control and scrutiny over the receipt and utilisation of foreign funds by NGOs.
What are the Key Changes?
- It allows Indians to receive up to Rs 10 lakh annually from their relatives abroad under FCRA.
- The limit earlier was Rs 1 lakh.
- If the amount exceeds, the individuals will now have 90 days to inform the government instead of 30 days earlier.
- It has given individuals and organisations or NGOs 45 days for the application of obtaining ‘registration’ or ‘prior permission‘ under the FCRA to receive funds.
- Organisations receiving foreign funds will not be able to use more than 20 % of such funds for administrative purposes.
- This limit was 50 % before 2020.
- Made five more offences under the FCRA “compoundable”, making 12, instead of directly prosecuting the organisations or individuals.
- Earlier, only seven offences under the FCRA were compoundable.
What are Compoundable Offences?
- Compoundable offences are those offences where, the complainant (one who has filed the case, i.e., the victim), enter into a compromise, and agrees to have the charges dropped against the accused. However, such a compromise should be a “Bonafide,” and not for any consideration to which the complainant is not entitled to.
- The FCRA violations which have become compoundable now include failure to intimate about receipt of foreign funds, opening of bank accounts, failure to place information on website, etc.
What is the Significance of the Move?
- Enhances Remittances:
- It will curb the outflow of funds and on the other hand enhancing inward Remittances.
- Stabilise forex Reserves:
- It will lead to an increase in inflow of funds into India which will stabilise the forex reserves and also the currency.
- Similarly, an increase in import duty on gold from 7.5 % to 12.5 % will discourage gold import as it will result in an increase in the price of gold in India.
- Reduces Trade Deficit:
- An increase in inflow of funds and reduction in outflow of funds on account of gold imports will help reduce the trade deficit.
- The trade deficit in the month of April and May 2022 stood at a high of USD 20.1 billion and USD 24.6 billion respectively making an aggregate of USD 44.7 billion in two months.
- By comparison the trade deficit in April and May 2021 stood at USD 21.8 billion.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Benefits of Aluminium Wagon
The Union Railway Minister has recently flagged off the country’s first freight train with an all-aluminium wagon rake.
What is the news?
- This move is a part of the country’s ambitious plan to modernize rail transportation and facilitate large carbon savings.
Aluminium-bodied trains
- Indian Railways proposes to shift its passenger and freight operations gradually to aluminium-bodied trains.
- A blueprint for its production and introduction was finalized even before the onset of the covid-19 pandemic.
- The Modern Coach Factory (MCF) at Rae Bareli has signed a transfer of technology contract with South Korea’s Dawonsys for such passenger coaches in early 2020.
- The execution of the project was held back because of the pandemic and its fallout.
- These coaches will be rolled out now.
What is the plan for their introduction?
- At present, India’s high-speed trains, including the Rajdhanis and the Shatabdis, use Linke Hofmann Busch (LHB) coaches that are made of stainless steel.
- Only the interiors use aluminium, which makes them lighter as compared to conventional rakes.
- The Indian Railways plans to procure 400 new generation Vande Bharat train sets with better energy efficiency and passenger riding experience.
- The use of aluminium body coaches in these new generation trains will be considered.
Will aluminium trains reduce carbon footprint?
- Aluminium trains consume less energy.
- Besides, the metal is recyclable.
- It is estimated that switching to aluminium will save 1,500 tonnes of carbon emissions a year.
- With the Railways planning to deploy over 100,000 wagons in the coming years, the potential annual CO2 reduction could be to the tune of over 5 million tonnes with a 15-20% shift to aluminium wagons.
Material advantages of aluminium
- These coaches, being lighter than stainless steel ones, are preferred for higher speed systems.
- They are lighter by up to 30% compared to stainless steel coaches.
- They offer low haulage cost and higher payload, better fuel efficiency and lower pollution levels.
- Also, aluminium trains take less time to manufacture and thus can help speed up capacity for production.
- The new metal trains will help the Railways hike its share in overall freight transportation from the current 18%.
What about the cost of building?
- An all-aluminium passenger coach and wagon system would raise the cost of manufacturing rolling stocks by about 35% since the price of aluminium, globally, is far higher than that of steel.
- However, the advantages of the metal outscore its high price. It is estimated that as the metal is recyclable, the new coaches would have up to 80% resale value.
- The recyclability will also help in times of global volatility in metal prices.
- This is why aluminium trains command a lion’s share in the US, Europe and Japan.
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From UPSC perspective, the following things are important :
Prelims level: PDNA
Mains level: Not Much
Post-Disaster Needs Assessment (PDNA) is now being done simultaneously in Assam, Himachal Pradesh, Gujarat, Karnataka, Jharkhand, Maharashtra, Odisha and Meghalaya.
Why in news?
- PDNA is now being used to evaluate the financial and social cost of local disasters in eight states in India.
- These states all experienced severe flooding in the last few months.
- The results of these assessments are likely to come out next month.
What is PDNA?
- PDNA is an internationally accepted methodology for determining the physical damages, economic losses, and costs of meeting recovery needs after a natural disaster through a government-led process.
- It is an international framework for assessing losses and damages in the aftermath of a disaster.
- The framework helps get recovery and reconstruction efforts right following a disaster.
- Globally, of the 55 PDNAs conducted worldwide since 2008, only two droughts — one in Malawi and the other Marshall Islands in 2016 — were of slow-onset disasters.
Components of PDNA
- PDNA includes a calculation of the disaster’s impact on Gross Domestic Product, the balance of payment and fiscal budget.
- Secondly, how this affects the flow of revenue to multiple sectors is evaluated.
- For example, the number of farmers’ income affected per damaged acre of land and the livelihoods lost.
- Overall, a quantitative assessment is additionally done on the social and environmental impact of the disaster.
History of PDNA in India
- This is not the first time PDNA has been conducted in India.
- It was first adopted during the Kerala floods of 2018 and again during the cyclone in Odisha in 2019, both unprecedented disasters.
- Until now, the assessment was only limited to massive disasters that required international funding from the World Bank, the Asian Development Bank and the United Nations.
15th Finance Commission provision
- The 15th finance commission report of 2021, for the first time, made a provision for recovery and reconstruction in the national disaster management budget, which is at the core of the PDNA.
- The states did not receive international funding to do the current ongoing PDNAs, as they are expected to take the money from the budget.
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From UPSC perspective, the following things are important :
Prelims level: Eclipses
Mains level: Read the attached story
India recently witnessed a partial solar eclipse. Let’s take a look over all dynamics of Eclipses.
What are Eclipses?
- An eclipse takes place when one heavenly body such as a moon or planet moves into the shadow of another heavenly body.
- There are two types of eclipses on Earth: an eclipse of the Moon and an eclipse of the Sun.
[I] A Lunar Eclipse
- The moon moves in an orbit around Earth, and at the same time, Earth orbits the sun. Sometimes Earth moves between the sun and the moon.
- When this happens, Earth blocks the sunlight that normally is reflected by the moon. (This sunlight is what causes the moon to shine.)
- Instead of light hitting the moon’s surface, Earth’s shadow falls on it. This is an eclipse of the moon — a lunar eclipse.
- A lunar eclipse can occur only when the moon is full. (But not every full moon is also a lunar eclipse. Can you guess why?)
Observing a Lunar Eclipse
- A lunar eclipse can be seen from Earth at night.
- A lunar eclipse usually lasts for a few hours.
- At least two partial lunar eclipses happen every year, but total lunar eclipses are rare.
There are two types of lunar eclipses: total lunar eclipses and partial lunar eclipses.
- A total lunar eclipse occurs when the moon and the sun are on exact opposite sides of Earth. Although the moon is in Earth’s shadow, some sunlight reaches the moon. The sunlight passes through Earth’s atmosphere, which causes Earth’s atmosphere to filter out most of the blue light. This makes the moon appear red to people on Earth.
- A partial lunar eclipse happens when only a part of the moon enters Earth’s shadow. In a partial eclipse, Earth’s shadow appears very dark on the side of the moon facing Earth. What people see from Earth during a partial lunar eclipse depends on how the sun, Earth and moon are lined up.
- In a penumbral lunar eclipse, only the more diffuse outer shadow of Earth – the penumbra – falls on the moon’s face. This third kind of lunar eclipse is much more subtle, and much more difficult to observe than either a total or partial eclipse of the moon.
[II] A Solar Eclipse
- Sometimes when the moon orbits Earth, it moves between the sun and Earth.
- When this happens, the moon blocks the light of the sun from reaching Earth.
- This causes an eclipse of the sun or solar eclipse.
- During a solar eclipse, the moon casts a shadow onto Earth.
There are three types of solar eclipses.
The first is a Total Solar Eclipse
- A total solar eclipse is only visible from a small area on Earth.
- The people who see the total eclipse are in the centre of the moon’s shadow when it hits Earth.
- The sky becomes very dark as if it were night. For a total eclipse to take place, the sun, moon and Earth must be in a direct line.
The second type is a Partial Solar Eclipse
- This happens when the sun, moon and Earth are not exactly lined up.
- The sun appears to have a dark shadow on only a small part of its surface.
The third type is an Annular Solar Eclipse
- An annular eclipse happens when the moon is farthest from Earth. Because the moon is farther away from Earth, it seems smaller. It does not block the entire view of the sun. The moon in front of the sun looks like a dark disk on top of a larger sun-coloured disk. This creates what looks like a ring around the moon.
- During a solar eclipse, the moon casts two shadows on Earth. The first shadow is called the Umbra. This shadow gets smaller as it reaches Earth. It is the dark centre of the moon’s shadow.
- The second shadow is called the Penumbra. The penumbra gets larger as it reaches Earth. People standing in the penumbra will see a partial eclipse. People standing in the umbra will see a total eclipse.
Observing a Solar Eclipse
- Solar eclipses happen once every 18 months.
- Unlike lunar eclipses, solar eclipses only last for a few minutes.
Why don’t solar eclipses happen at every New Moon?
- The reason is that the Moon’s orbit tilts 5° to Earth’s orbit around the Sun.
- Astronomers call the two intersections of these paths nodes.
- Eclipses only occur when the Sun lies at one node and the Moon is at its New (for solar eclipses) or Full (for lunar eclipses) phase.
- During most (lunar) months, the Sun lies either above or below one of the nodes, and no eclipse happens.
[III] Planet Transits
- When a planet comes between Earth and the Sun, it is called a transit.
- The only 2 planets that can be seen transiting the Sun from Earth are Venus and Mercury because they are the only planets that orbit inside Earth’s orbit.
- From 2000–2199, there will be 14 transits of Mercury.
- However, Venus transits are even rarer with only 2 this century, in 2004 and 2012.
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From UPSC perspective, the following things are important :
Prelims level: LVM3 (GSLV MK3), PSLV
Mains level: Satellite program of Indi
The ISRO’s heaviest rocket, Launch Vehicle Mark 3 (LVM3 or GSLV Mark 3) has successfully put into orbit 36 satellites of the U.K.-based OneWeb.
Also in news
- The ISRO has renamed the Geosynchronous Satellite Launch Vehicle (GSLV) Mark -III as Launch Vehicle Mark-III, mainly to identify its task of placing satellites into a variety of orbits.
What is LVM3?
- LVM3 (erstwhile GSLV) is an expendable space launch vehicle designed, developed, and operated by the ISRO to launch satellites and other space objects into Geosynchronous Transfer Orbits.
- It is 49.13 m tall and tallest among all other vehicles of ISRO.
- It is a three-stage vehicle with a lift-off mass of 420 tonnes.
- ISRO first launched LVM3 on April 18, 2001 and has made 13 launches since then.
Stages in LVM3
- The first stage comprises S139 solid booster with 138-tonne propellant and four liquid strap-on motors, with 40-tonne propellant.
- The second stage is a liquid engine carrying 40-tonne of liquid propellant.
- The third stage is the indigenously built Cryogenic Upper Stage (CUS) carrying 15-tonne of cryogenic propellants.
Difference between PSLV and LVM3
- LVM3 has the capability to put a heavier payload in the orbit than the Polar Satellite Launch Vehicle (PSLV).
- PSLV can carry satellites up to a total weight of 2000 kg into space and reach up to an altitude of 600-900 km.
- LVM3 can carry weight up to 5,000 kg and reach up to 36,000 km.
- PSLV is designed mainly to deliver earth observation or remote sensing satellites, whereas, LVM3 has been designed for launching communication satellites.
- LVM3 delivers satellites into a higher elliptical orbit, Geosynchronous Transfer Orbit (GTO) and Geosynchronous Earth Orbit (GEO).
Upgrades brought by LVM3
- The LVM3 is capable of lifting much heavier satellites than the GSLV Mk II with a bigger cryogenic upper stage and a larger first stage.
- Both GSLV Mk II and LVM3 are three-stage vehicles, while the PSLV, which launches to low earth polar orbits, is a four-stage vehicle.
- The GSLV Mk-II can place up to 2,500kg in geosynchronous orbits and up to 5,000kg to low earth orbit.
- By comparison, the LVM3 can lift 4,000kg to GTO and up to 8,000 kg to LEO.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CAR, Basel Norms
Mains level: Not Much
The Reserve Bank of India (RBI) has placed a private bank under tight monitoring and greater public scrutiny.
What is the news?
- The XYZ Bank’s capital to risk weighted assets ratio (CRAR) dropped to around 13% at the end of March this year from 14.5% a year ago.
- This has dropped below the Basel III in the past and it has even been placed under the prompt corrective action framework (PCA) by the RBI to deal with serious deteriorations in its financial position.
- Under Basel-III norms banks are supposed to maintain their CRAR at 9% or above.
What is Capital Adequacy Ratio (CAR)?
- Capital adequacy ratio is an indicator of the ability of a bank to survive as a going business entity in case it suffers significant losses on its loan book.
- The CRAR is a ratio that compares the value of a bank’s capital (or net worth) against the value of its various assets weighted according to how risky each asset is.
- It is used to gauge the risk of insolvency faced by a bank.
How do it affects bank functioning?
- A bank cannot continue to operate if the total value of its assets drops below the total value of its liabilities as it would wipe out its capital (or net worth) and render the bank insolvent.
- So, banking regulations such as the Basel-III norms try to closely monitor changes in the capital adequacy of banks in order to prevent major bank failures which could have a severe impact on the wider economy.
- The capital position of a bank should not be confused with cash held by a bank in its vaults to make good on its commitment to depositors.
Alternatives for bank
- The said Bank has been trying to issue additional shares in the open market through a rights issue in order to deal with its capital adequacy woes.
- Through a rights issue, the bank will be able to raise more equity capital from existing shareholders.
- This is in contrast to an initial public offering where shares are issued to new shareholders.
Back2Basics: Basel Norms
- Basel is a city in Switzerland. It is the headquarters of the Bureau of International Settlement (BIS), which fosters co-operation among central banks with a common goal of financial stability and common standards of banking regulations.
- Basel guidelines refer to broad supervisory standards formulated by this group of central banks – called the Basel Committee on Banking Supervision (BCBS).
- The set of the agreement by the BCBS, which mainly focuses on risks to banks and the financial system is called Basel accord.
- The purpose of the accord is to ensure that financial institutions have enough capital on account to meet obligations and absorb unexpected losses.
- India has accepted Basel accords for the banking system.
Basel I
- In 1988, BCBS introduced a capital measurement system called Basel capital accord, also called as Basel 1.
- It focused almost entirely on credit risk. It defined capital and structure of risk weights for banks.
- The minimum capital requirement was fixed at 8% of risk-weighted assets (RWA).
- RWA means assets with different risk profiles.
- For example, an asset-backed by collateral would carry lesser risks as compared to personal loans, which have no collateral. India adopted Basel 1 guidelines in 1999.
Basel II
- In June ’04, Basel II guidelines were published by BCBS, which were considered to be the refined and reformed versions of Basel I accord.
- The guidelines were based on three parameters, which the committee calls it as pillars:
- Capital Adequacy Requirements: Banks should maintain a minimum capital adequacy requirement of 8% of risk assets.
- Supervisory Review: According to this, banks were needed to develop and use better risk management techniques in monitoring and managing all the three types of risks that a bank faces, viz. credit, market and operational risks.
- Market Discipline: This needs increased disclosure requirements. Banks need to mandatorily disclose their CAR, risk exposure, etc to the central bank. Basel II norms in India and overseas are yet to be fully implemented.
Basel III
- In 2010, Basel III guidelines were released. These guidelines were introduced in response to the financial crisis of 2008.
- A need was felt to further strengthen the system as banks in the developed economies were under-capitalized, over-leveraged and had a greater reliance on short-term funding.
- Also, the quantity and quality of capital under Basel II were deemed insufficient to contain any further risk.
- Basel III norms aim at making most banking activities such as their trading book activities more capital-intensive.
- The guidelines aim to promote a more resilient banking system by focusing on four vital banking parameters viz. capital, leverage, funding and liquidity.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bhoota Kola
Mains level: NA
There has been a controversy over the folk art of Bhoota Kola recently depicted in a famous Kannada movie.
What is Bhoota Kola?
- Bhoota Kola is an animistic ritual dance performance where local spirits or deities are worshipped.
- It is believed that a person performing the ritual has temporarily become a god himself.
- This performer is both feared and respected in the community and is believed to give answers to people’s problems, on behalf of the god.
- There are several ‘Bhootas’ who are worshipped in the Tulu-speaking belt of Dakshina Kannada, Uttara Kannada and Udupi districts.
- It is usually performed in small local communities and rural areas.
How is it performed?
- The Kola (or dance performance for the Gods) is basically performed in an area near the temple of the village deity which is usually close to large open fields.
- The ritual involves music, dance, recital, and elaborate costumes.
- Recitals in Old Tulu recount the origins of the deity and tell the story of how it came to the present location.
- The divine medium start their traditional performances as the local folklore called ‘paddanas’ are recited.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Sukapaika River
Mains level: Rejuvenation of River
Sukapaika, a small river that stopped flowing 70 years ago in Odisha’s Cuttack district is set to be rejuvenated.
Sukapaika River
- The Suka-paika (the dead) River originated from another river, the Mahanadi, near Ayatpur village.
- It flowed 27.5 km before meeting the Mahanadi again at Bankala.
- In the 1950s, the State’s water resource engineers had in their wisdom closed the Sukapaika river mouth enabling development of the Taladanda Canal System, a major canal of the State.
- This led to the river mostly drying up.
- The process was aggravated by agricultural encroachments that had sprung up on the riverbanks.
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