Note4Students
From UPSC perspective, the following things are important :
Prelims level: Taxation; GST;
Mains level: Recent Issues in Taxation;
Why in the news?
Recently Vijay Kelkar (chaired 13th Finance Commission) attributes frauds in Indirect Tax regimes to high GST rates; Moots switched to a single 12% rate like most other countries.
Reason behind the need for a Single GST rate:
- Simplification of the structure: A single GST rate would simplify the structure, making it easier for businesses to comply with the tax system and reducing the complexity of classification issues
- Promotion of manufacturing and exports: A single GST rate could help promote manufacturing and exports by reducing the burden of multiple rates and making the tax system more predictable
- Single GST rate in many countries: In many developed and emerging market economies, a single GST or VAT rate has been successful in optimizing tax revenue and minimizing tax disputes for example Singapore, New Zealand, the United Arab Emirates, and Japan, have opted for a single GST or VAT rate
- Addressing GST frauds: High GST rates can make it lucrative for fraudsters to evade taxes. A single, lower GST rate could potentially reduce the incentive for tax evasion and make the system more transparent
- Reducing litigation: A single GST rate could help reduce litigation related to classification issues and subjective interpretation of tax rates
How does the Indian GST model compare with GST in other countries?
| Particulars |
India |
Canada |
UK |
Singapore |
| Name of GST in the Country |
Goods and Service tax |
Federal Goods and Service Tax & Harmonized Sales Tax |
Value Added Tax |
Goods and Service Tax |
| Standard Rate |
0% (for food staples), 5%, 12%, 18% and 28% (+cess on luxury items) |
GST 5% and HST varies from 0% to 15% |
20 %Reduced rates- 5 %, exempt, zero rated |
7% Reduced rates- Zero rated, exempt |
| Threeshold Exemption Limit |
Rs.40 lakh or Rs.20 lakh, depending on the state and supply |
Canadian $ 30,000 |
£ 85,000 |
Singapore $ 1 million |
| Liability arises on |
Accrual basis: Issue of invoice ORReceipt of payment-earlier |
Accrual basis: The date of issue of invoice OR the date of receiptof payment- earlier. |
Accrual Basis: Invoice OR PaymentOR Supply-earliestCash basis (T/O up to 1.35mn): Payment |
Accrual Basis: Issue of invoice OR Receipt of payment OR Supply – earliestCash basis: (T/O up to SGD$1mn): Payment |
| Reverse Charge Mechanism |
Applies on goods as well as services |
Reverse charge applies to the importation of services andintangible properties |
Applicable |
Reverse charge applies to the supply of services |
| Exempt Supplies |
Sale of land and completed buildings, certain healthcare and educational services, essential food items, etc. |
Real estate, financial services, rent (Residence), charities, health, education |
Medical, education, finance, insurance, postal services |
Real estate, Financial services, Residential rental |
Significance of sharing GST with local bodies:
- Promoting Co-operative Fiscal-federalism: Sharing GST revenues with local bodies could promote fiscal federalism by ensuring a fair distribution of tax revenues among all tiers of government.
- Strengthening of their Fiscal base: Equitable sharing of GST with the third tier of government, i.e., local bodies, would strengthen their fiscal base and enable them to undertake investments for vital infrastructure and high-quality public goods
- Building Fairness and appropriateness: GST is a consumption tax, and taxpayers should see direct benefits accruing from their payment of taxes. An arrangement for sharing GST revenues with local bodies would be fair and appropriate
- Improves Local governance: Sharing GST revenues with local bodies would bolster the quality of governance provided by local governments, as citizens’ demand for quality public goods will grow louder.
BACK2BASICS:
About Goods and Services Tax:
- GST was introduced through the 101st Constitution Amendment Act, 2016. It is one of the biggest indirect tax reforms in the country.
- It was introduced with the slogan of ‘One Nation One Tax’.The GST has subsumed indirect taxes like excise duty, Value Added Tax (VAT), service tax, luxury tax etc.
- It is essentially a consumption tax and is levied at the final consumption point.
- Tax Structure:
- Central GST to cover Excise duty, Service tax etc, State GST to cover VAT, luxury tax etc. and Integrated GST (IGST) to cover inter-state trade.
- IGST per se is not a tax but a system to coordinate state and union taxes.
- It has a 4-tier tax structure for all goods and services under the slabs- 5%, 12%, 18% and 28%.
|
Conclusion: Implementing a single GST rate streamlines compliance, promotes economic growth, and curbs fraud. Sharing GST revenue with local bodies strengthens fiscal bases, fosters fairness, enhances governance, and supports fiscal federalism for equitable distribution.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Why in the news?
A rare Total Solar Eclipse will be visible across North America on April 8.
What are Eclipses?
- Eclipses are astronomical events that occur when the sun, moon, and Earth align in specific ways.
- There are two primary types of eclipses: solar and lunar.
- A solar eclipse happens when the moon comes between the sun and Earth during a new moon, blocking out the sun’s light.
- Conversely, a lunar eclipse occurs when the Earth is positioned between the sun and the moon during a full moon, casting a shadow on the moon.
What is a Total Solar Eclipse?
- During a total solar eclipse, the moon passes between the sun and Earth, entirely covering the face of the sun along a small path of our planet’s surface.
- This is called the “path of totality.”
- The daytime sky turns dark, similar to dusk or dawn, and nocturnal animals have been known to wake up, confused into believing night has arrived.
Stages of a Total Solar Eclipse
A total solar eclipse unfolds in several distinct stages.
- It starts with a partial eclipse phase as the moon begins to pass between Earth and the sun, partially blocking it and leaving the sun looking like it has a crescent shape.
- In the subsequent Baily’s Beads phase, points of light from the sun shine around the moon’s edges because of the irregular lunar topography, producing small beads of light.
- In the diamond ring phase, a single bright spot appears along the lunar edge even as the sun’s atmosphere leaves a ring of light around the moon. This phenomenon precedes totality.
- After totality, the other phases repeat as the moon keeps moving along its path until the eclipse ends.
Other types of solar eclipses:
- 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.
- 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.
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.
PYQ:
2013:
Consider the following phenomena
1. Size of the sun at dusk
2. Colure of the sun at dawn
3. Moon being visible at dawn
4. Twinkle of stars in the sky
5. Polestar being visible in the sky
Which of the above are optical illusions?
(a) 1, 2 and 3
(b) 3, 4 and 5
(c) 1, 2 and 4
(d) 2, 3 and 5
Practice MCQ:
Which of the following statements best characterizes a Total Solar Eclipse?
(a) A total solar eclipse occurs when the Moon partially blocks the Sun, leaving a visible ring of sunlight around the Moon’s silhouette.
(b) During a total solar eclipse, the Moon completely covers the Sun, casting a shadow on a narrow path on the Earth’s surface called the umbra.
(c) Total solar eclipses occur more frequently than partial solar eclipses due to the precise alignment of the Sun, Earth, and Moon.
(d) Total solar eclipses can only be observed from specific locations on Earth, making them rare and highly sought-after astronomical events. |
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Why in the news?
- Telangana’s Department of Heritage has recently unearthed a lead coin hoard belonging to Ikshvaku Period at Phanigiri, a renowned Buddhist heritage site.
- The coins numbering 3,730 bore an elephant symbol on the obverse and a Ujjain symbol on the reverse.
Who were the Ikshvaku (225-340 A.D)?
- Origin and Rule
- The Ikshvaku dynasty was a feudatory under the patronage of the Satavahanas.
- Their capital was located at Vijayapuri, modern-day Nagarjunakonda in Andhra Pradesh.
- They ruled over the delta of the Krishna and Godavari rivers on the east coast of the Andhra region.
- They claimed to be descendants of the legendary king Ikshvaku, mentioned in ancient Sanskrit texts such as the Rigveda and Ramayana.
- The dynasty’s founder was Vasishthiputra Chamtamula, who rose to power after the decline of the Satavahana dynasty.
- Cultural Affiliations
- The Ikshvakus were Shaivites and performed Vedic rites, but they also patronized Buddhism, which flourished during their reign.
- Under the reign of Vasishthi-putra Ehuvala Chamtamula, the Ikshvaku kingdom reached its zenith, marked by the construction of numerous Hindu and Buddhist shrines.
- Their inscriptions and coins have been discovered at various archaeological sites, including Nagarjunakonda, Jaggayyapeta, Kottampalugu, Gurazala, Rentala, and Uppugunduru.
- Decline:
- Successive rulers, such as Mathari-putra Vira-purusha-datta, Vasishthi-putra Ehuvala Chamtamula, and Vasishthi-putra Rudra-purusha-datta, contributed to the expansion and governance of the kingdom.
- By the mid-4th century, the Pallavas had gained control of the former Ikshvaku territory, marking the decline of the dynasty.
About Phanigiri
- Phanigiri village derived its name from the shape of the hillock, which appears to be like a snake hood.
- The word Phani in Sanskrit means snake and Giri means hillock.
- Studies suggest that the village had a vibrant life from 1000 BC to 18th century AD.
- Phanigiri is believed to be one of the important Buddhist monasteries strategically located on the hilltop, on the ancient trade route (Dakshinapatha) connecting the west and the east coast of the Deccan.
- Various stages of earlier excavations here discovered Mahastupa, apsidal Chaityagrihas, Votive stupas, pillared congregation halls, Viharas, platforms with staircases at various levels, octagonal stupa chaitya, 24-pillared mandapam, circular Chaitya.
- Cultural materials included terracotta beads, semi-precious beads, iron objects, Brahmi label inscriptions and holy relic casket.
|
PYQ:
[2017] How do you justify the view that the level of excellence of Gupta Numismatic Art is not at all noticeable in later times? |
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Why in the news?
It was on April 8th 167 years ago in 1857, Mangal Pandey was hanged.
Who was Mangal Pandey?
- Mangal Pandey, born on July 19, 1827, in Nagwa village of the Ballia district in present-day Uttar Pradesh.
- He belonged to the kingdom of Awadh, which had been treacherously annexed by the British in 1856.
- At the age of 22, he enlisted as a soldier in the British East India Company’s army, joining the 34th Bengal Native Infantry.
Recap of his revolutionary activities
- Annexation of Awadh
- The Begums of Awadh had an understanding with the British, and had been abiding by the terms of the agreement.
- In spite of this, Awadh was annexed, in February 1856, which was greatly resented by the people.
- Awadh was a region that supplied large numbers of soldiers of war to the Company’s army.
- There were 75,000 soldiers from Awadh, and almost every agricultural family in the kingdom had a representative in the army.
- Whatever happened in Awadh was of immediate concern to the Sepoy.
- Rise of Resentment
- The deposition of the Nawab and the confiscation of the villages of taluqdars during the land revenue settlement of 1856 caused outrage.
- Some 14,000 petitions were received from the Sepoys about the hardships they faced on account of the revenue system.
- Mangal Pandey represented the discontent that the misery of British rule had brought upon peasant families.
- Flashpoint and the mutiny
- Mangal Pandey was stationed at Barrackpore, near Calcutta (now Kolkata), where he became involved in a significant event that would later be known as the Sepoy Mutiny of 1857.
- He refused to use the newly introduced Enfield rifle, the cartridges of which had a covering that was believed to be made of animal fat (beef and pork), and which had to be bit open before the cartridges could be used.
- This was viewed by the soldiers as a direct assault on their religious beliefs by the British who intended to bring an end to their religion and propagate Christianity.
- On March 29, 1857, Pandey mutinied and fired at his Senior Sergeant Major.
- He was overpowered and hanged on April 8, 1857, by the order of a Court Martial at Lal Bagan in Barrackpore.
- His regiment was disbanded, like the 19th infantry at Behrampore, for showing resentment.
PYQ:
[2019] The 1857 Uprising was the culmination of the recurrent big and small local rebellions that had occurred in the preceding hundred years of British Rule. Elucidate. |
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Agnibaan SOrTeD
Mains level: NA
Why in the news?
- For the second time, the launch of AgniKul ‘Agnibaan SOrTeD’ has been postponed.
- The IIT Madras-based Agnikul Cosmos was to test-fire an Agnibaan rocket with 3D-printed engine, aiming for suborbital flight trajectory control.
What is Agnibaan SOrTeD (Suborbital Tech Demonstrator)?
- Agnibaan SOrTeD is a single-stage launch vehicle powered by Agnikul’s patented Agnilet semi-cryogenic engine.
- In contrast to traditional sounding rockets, Agnibaan SOrTeD’s vertical take-off and precise trajectory enable orchestrated maneuvers during flight.
Distinct Features of Agnibaan:
- Customizability: The rocket offers custom launch configurations, either single or two-stage launches.
- Dimensions: Standing at 18 meters and weighing 14,000 kg, Agnibaan SOrTeD is a powerful presence.
- Payload Capacity: With a capacity for payloads of up to 100 kg, it can reach altitudes of 700 km in five different Lower Earth Orbits (LEOs).
- Engine Configuration: The first stage can house up to seven Agnilet engines, powered by Liquid Oxygen and Kerosene, dependent on the mission’s requirements.
- Launch Pedestal ‘Dhanush’: AgniKul’s built ‘Dhanush’ supports the rocket’s mobility across configurations, ensuring compatibility with multiple launch ports.
- Agnilet Engine: Agnilet engine, a 3D-printed, single-piece, 6 kN semi-cryogenic marvel, drives Agnibaan’s propulsion. The engine employs a novel blend of liquid kerosene and supercold liquid oxygen as propellants.
PYQ:
[2011] Satellites used for telecommunication relay are kept in a geostationary orbit. A satellite is said to be in such an orbit when:
1. The orbit is geosynchronous.
2. The orbit is circular.
3. The orbit lies in the plane of the Earth’s equator.
4. The orbit is at an altitude of 22,236 km
Select the correct answer using the codes given below:
(a) 1, 2 and 3 only
(b) 1, 3 and 4 only
(c) 2 and 4 Only
(d) 1, 2, 3 and 4 |
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Project Akashteer
Mains level: NA
Why in the news?
- The Indian Army’s Corps of Army Air Defense has initiated the induction of control and reporting systems under ‘Project Akashteer’ to bolster its air defense capabilities.
About Project Akashteer
- The Akashteer Project is an initiative designed to automate air defence control and reporting processes by digitising the entire process.
- It is developed by Bharat Electronics Limited (BEL) as part of the ‘Atmanirbhar Bharat’ initiative.
- It seeks to induct Akashteer Command and Control Systems
- By integrating radar and communication systems at all levels into a unified network, ‘Akashteer’ aims to deliver an unprecedented level of situational awareness and control.
- This will enable swift engagement of hostile targets, significantly reduce the risk of fratricide, and ensure the safety of friendly aircraft in contested airspace.
How it will help India’s air defence system?
The ‘Akashteer Command and Control Systems’ will significantly enhance India’s air defense capabilities in several ways:
- Efficiency and Integration: Digitizing Air Defence Control and Reporting processes with ‘Akashteer’ will improve efficiency and integration. This enables the Indian Army to respond swiftly to hostile threats while reducing the risk of friendly fire incidents.
- Situational Awareness: ‘Akashteer’ integrates radar and communication systems into a unified network, providing the Indian Army with better situational awareness. This enables them to detect and engage hostile targets more effectively, ensuring the safety of friendly aircraft in contested airspace.
- Mobility and Resilience: The system’s vehicle-based and mobile Control Centers are designed for operational capabilities even in challenging communication environments. This ensures that the Indian Army can operate effectively in diverse terrain and adverse conditions.
- Automation: Deployment of ‘Akashteer’ represents a move towards complete automation of air defense operations. This enhances the Indian Army’s ability to defend its airspace, ensuring a safer and more secure future for the country.
PYQ:
[2018] What is “Terminal High Altitude Area Defense (THAAD)”, sometimes seen in the news?
(a) An Israeli radar system
(b) India’s indigenous anti-missile programme
(c) An American anti-missile system
(d) A defence collaboration between Japan and South Korea |
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: trend in forest fires in states
Mains level: Region more prone to forest Fire and factores behind the forest fire
Why in the news?
The forest staff across the Kerala State are on alert with the onslaught of summer, with temperatures reaching as high as 40-41 degrees Centigrade, unusual for this time.
Forest Fires in Kerala
- Kerala records relatively fewer forest fires compared to several other states in India, including Chhattisgarh, Odisha, Madhya Pradesh, Assam, and Maharashtra.
- Kerala’s forest cover, occupying 29.65% of the land, is dominated by deciduous and semi-deciduous woods that are drying up, especially on the forest periphery because of it Forest staff in Kerala are on alert
- Kerala reported 163 wildfire incidents since January, resulting in the burning of 230 hectares of forest, which is less compared to previous years.
- Global Forest Watch data indicates 97 VIIRS(Visible Infrared Imaging Radiometer Suit) fire alerts in Kerala between March 15 and 22, with only 5.2% of them classified as high-confidence alerts.Fires were responsible for 0.33% forest cover loss in Kerala between 2001 and 2022 according to Global Forest Watch.
What is the frequency of forest fires in India?
- Escalation Of forest Fire : Forest fire season in India typically spans from November to June, during which hundreds of thousands of small and large fires occur annually. The frequency of fires tends to escalate from February onwards as summer approaches.
- forest Fires as per (ISFR) : In its 2021 report, the biennial India State of Forest Report (ISFR) released by the Forest Survey of India (FSI) indicates that 35.47% of the forest cover is classified as fire-prone areas.
Region more prone to forest Fire
- Fires of severe magnitude occur frequently in dry deciduous forests, whereas evergreen, semi-evergreen, and montane temperate forests are relatively less susceptible to fires.
- During the November to June period, the forests in Northeast India, Odisha, Maharashtra, Jharkhand, Chhattisgarh, and Uttarakhand face the highest risk of fires.For example in 2021, a string of forest fires occurred in Uttarakhand, Himachal Pradesh, the Nagaland-Manipur border, Odisha, Madhya Pradesh, and Gujarat, including within wildlife sanctuaries.
- In 2024 forest Fires: According to data from the Forest Survey of India (FSI), Mizoram reported the highest number of forest fires (3,738), followed by Manipur (1,702), Assam (1,652), Meghalaya (1,252), and Maharashtra (1,215).
Reason behind the forest fires in India
The majority of forest fires in India are ignited by human activities, including:
- Agricultural Burning: Farmers often use fire to clear land for cultivation or to manage crop residues, leading to accidental fires spreading into nearby forests.For example Jhum (slash and burn cultivation)
- Intentional Arson: Deliberate setting of fires for various reasons, such as land grabbing, hunting, or retaliatory actions.
- Carelessness: Unattended campfires, discarded cigarettes, or burning of waste materials can spark fires.
- Climate Conditions: Dry and hot weather conditions during the summer months create favorable conditions for the rapid spread of fires. .For example forest fires has worsen due to climate change as per UNEP
Plan for Fighting forest Fires
- Early Detection: Implement systems for early detection of forest fires, such as fire watchtowers, aerial surveillance, and remote sensing technologies like drones and satellites.
- Rapid Response: Develop well-trained and equipped firefighting teams capable of swift response to contain fires in their early stages before they escalate.
- Controlled Burns: Conduct controlled burns during cooler and wetter months to remove excess vegetation and reduce the risk of large-scale wildfires during dry seasons.
- Firebreaks: Create and maintain firebreaks by clearing vegetation along strategic points to halt the spread of fires.
- Community Involvement: Educate local communities about fire prevention and train them in firefighting techniques. Encourage community participation in fire management efforts.
- Equipment and Infrastructure: Ensure availability and proper maintenance of firefighting equipment such as hoses, pumps, bulldozers, and firefighting aircraft.
Conclusion
Forest fires in India, exacerbated by climate conditions, pose significant threats. Kerala’s proactive measures and community involvement highlight effective strategies for prevention and control, crucial in mitigating the increasing frequency of fires nationwide.
https://www.downtoearth.org.in/news/natural-disasters/wildfires-will-be-more-frequent-larger-and-intense-due-to-climate-change-unep-81615
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: About Green , Blue and grey hydrogen
Mains level: Objecive of MNRE scheme, significance of hydrogen fuel vehicles and Challenges
why in the news?
Recently, the Ministry of New and Renewable Energy (MNRE) has announced a Rs-496-crore (until 2025-26) scheme to support pilot projects that either test the viability of green hydrogen as a vehicle fuel or develop secure supporting infrastructure such as refuelling stations.
Objecive of MNRE scheme
(i) validation of technical feasibility and performance of green hydrogen as a transportation fuel
(ii) evaluation of the economic viability of green hydrogen-powered vehicles
(iii) demonstration of safe operation of hydrogen-powered vehicles and refuelling stations.
About Green , Blue and grey hydrogen
The significance of hydrogen fuel vehicles, particularly hydrogen internal combustion engine (ICE) vehicles and hydrogen fuel cell electric vehicles (FCEVs)
- Zero Carbon Emissions: Both hydrogen ICE vehicles and FCEVs produce zero carbon emissions during operation.
- Energy Efficiency: While research suggests that burning hydrogen in an ICE vehicle may be less energy-efficient than using it in a fuel cell, FCEVs still offer high energy efficiency compared to traditional internal combustion engine vehicles, particularly those powered by fossil fuels like diesel and petrol.
- Clean Energy Production: Hydrogen can be produced through various renewable energy sources, such as wind, solar, and hydroelectric power.
- Lightweight and Increased Payload Capacity: Hydrogen FCEVs typically weigh less than battery electric vehicles (BEVs) due to the lighter weight of hydrogen and the fuel cell stack compared to EV batteries.
- Long-haul Freight Applications: Research indicates that long-haul FCEVs can carry freight amounts similar to diesel trucks, while BEVs may suffer from a weight penalty due to heavier batteries. .
- Diversification of Energy Sources: Hydrogen fuel vehicles offer a viable alternative to battery electric vehicles, providing diversification in energy sources for transportation.
Challenges
- Storage and Transportation Challenges: Developing specialized cylinders capable of safely storing high-pressure green hydrogen is essential. Existing cylinders designed for compressed natural gas (CNG) are not suitable for hydrogen storage
- Fuel Costs and Infrastructure: Green hydrogen-powered vehicles face challenges in competing with battery electric vehicles (BEVs) due to higher fuel costs and the need for infrastructure development, including hydrogen refueling stations. The cost of establishing and maintaining hydrogen refueling infrastructure is significant, hindering the widespread adoption of hydrogen FCEVs.
- Safety Concerns: Hydrogen is highly flammable, necessitating robust safety standards and protocols for handling and storing the fuel at refueling stations.
Conclusion
Green hydrogen offers zero emissions, energy efficiency, and diversification in energy sources for transportation. However, challenges like storage, infrastructure costs, and safety concerns hinder widespread adoption, despite MNRE’s support scheme.
Mains PYQ
Q How is efficient and affordable urban mass transport key to the rapid economic development in India? (UPSC IAS/2019)
Q Discuss in detail the photochemical smog emphasizing its formation, effects and mitigation. Explain the 1999 Gothenburg protocol.(UPSC IAS/2022)
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Etanol factories in India
Mains level: Negative impact of ethanol factory on the region without proper regulation
Why in the news?
- Recently Gandepalli village in news because of devastating impact of an ethanol factory (Sentini BioProducts Pvt. Ltd) since 2008
- Residents are struggling with foul air and water, poisoned crop fields, and depleting water tables
Negative impact on village
Sentini BioProducts Pvt. Ltd. is a company involved in the production of ethanol and animal feed supplements. It specializes in manufacturing extra-neutral alcohol (ENA), a type of ethanol.
- Under the red category: Ethanol production plants and distilleries, including Sentini BioProducts, fall under the ‘red category’ as per Central government norms, indicating high pollution levels (score of 60 or more)
- Wastewater Discharge: The factory is mandated to have a Zero Liquid Discharge system in place. However, residents report untreated wastewater discharge into the nearby irrigation canal.
- Air Pollution: Residents complain of a choking stench and polluted air emanating from the factory, indicating potential air pollution issues.
- Crop Damage: Extensive crop damage is reported by villagers, indicating potential contamination of agricultural lands by pollutants from the factory. Over more than 10 years, farmers in the area have experienced a decline in crop quality and yield, particularly in paddy cultivation.
- Negative Impact on quality of Life: Pollution from the factory negatively impacts the quality of life for local residents, posing health risks and environmental hazards.
Regulatory Failures in this situation:
- Unable to address the problem: Despite multiple complaints from villagers and show-cause notices issued to the factory since 2013, regulatory authorities, including the Andhra Pradesh Pollution Control Board (APPCB), have been ineffective in addressing the pollution issues.
- Regulatory lapse revealed by Lokayukta: The Lokayukta inquiry revealed lapses by regulatory bodies, including the APPCB and the Joint Director of Agriculture of Krishna district, in investigating and addressing the environmental damage caused by the factory’s operations.
- Delay in action: The delay in taking appropriate action and the failure to enforce environmental regulations have allowed the factory to continue its polluting activities unabated.
Suggestive measures to address the situation:
- Need Comprehensive Investigation: Conduct a thorough investigation into the environmental impact of Sentini BioProducts Pvt. Ltd. on Gandepalli village. This investigation should include assessments of air and water quality, soil contamination, and the extent of crop damage caused by the factory’s operations.
- Enforcement of Environmental Standards: Ensure strict compliance with environmental standards and regulations by the factory.
- Community Engagement: Foster meaningful dialogue and engagement between the factory management, regulatory authorities, and the local community. Provide opportunities for residents to voice their concerns, share their experiences, and participate in decision-making processes related to environmental management and pollution control measures.
- Remediation and Compensation: Implement measures to remediate the environmental damage caused by the factory, including restoration of polluted water bodies, soil remediation, and compensation for affected farmers.
Conclusion
The devastating impact of Sentini BioProducts Pvt. Ltd. on Gandepalli village, including pollution, crop damage, and regulatory failures, necessitates urgent comprehensive investigation, strict enforcement of environmental standards, community engagement, and remediation efforts to restore environmental health and livelihoods.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Retail Direct Scheme
Mains level: NA
Why in the news?
The RBI has decided to introduce a Mobile App of its RBI Retail Direct scheme aimed at facilitating seamless investment in government securities by retail investors.
What is Retail Direct Scheme?
- Retail Direct Scheme was rolled out in November 2021, giving access to individual investors to maintain gilt accounts with RBI and invest in government securities.
- Using this app, investors can buy central and state government bonds as well as Treasury bills.
- It enables investors to buy securities in primary auctions as well as buy/sell securities through the Negotiated Dealing System-Order Matching system (NDS-OM) platform.
- A Gilt Account can be compared with a bank account, except that the account is debited or credited with treasury bills or government securities instead of money.
Treasury Bills:
- They are promissory notes issued by the RBI on behalf of the government as a short term liability and sold to banks and to the public.
- The maturity period ranges from 14 to 364 days.
- They are the negotiable instruments, i.e. they are freely transferable.
- No interest is paid on such bills but they are issued at a discount on their face value.
|
How does it work?
- Under the scheme, small investors can buy or sell government securities (G-Secs), or bonds, directly without an intermediary like a mutual fund.
- However, the same tax rules apply to income from G-Secs.
- The minimum amount for a bid is ₹10,000 and in multiples of ₹10,000 thereafter.
- Payments may be made through Net banking or the UPI
Benefits of RDS
- With the government being the borrower, there is a sovereign guarantee for the funds and hence zero risk of default.
- Also, government securities may offer better interest rates than bank fixed deposits, depending on prevailing interest rate trends.
How can individuals access G-Sec offerings?
- Investors wishing to open a Retail Direct Gilt account directly with the RBI can do so through an online portal set up for the purpose of the scheme.
- Once the account is activated with the aid of a password sent to the user’s mobile phone, investors will be permitted to buy securities either in the primary market or in the secondary market.
PYQ:
[2018] Consider the following statements:
1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
3. Treasury bills offer are issued at a discount from the par value.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3 |
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: DNA Findings of Rakhigarhi, IVC
Mains level: NA
Why in the news?
The National Council of Educational Research and Training (NCERT) has proposed to add information about the DNA analysis of skeletal remains found at Rakhigarhi.
DNA Findings of Rakhigarhi
Their key findings include-
- Debunking of the Aryan Invasion Theory.
- The genetic roots of the Harappans date back to 10,000 BCE.
- DNA of the Harappans has continued to exist among the majority of the South Asian population.
- The study indicates genetic continuity without large-scale immigration.
- Ancestry was closely linked to Iranian ancestry and not at all to Steppe ancestry.
- Farming skills have been developed indigenously contrary to prevalent theories that these came with migrants from the Steppes and Anatolian farmers.
|
About Rakhigarhi
- The ancient site of Rakhi-Khas and Rakhi-Shahpur are collectively known as Rakhigarhi, located on the right bank of the now dried up Palaeo-channel of Drishadvati.
- It is located in the Ghaggar-Hakra River plain in the Hissar district of Haryana.
- Total seven mounds are located here.
- The site has yielded various stages of Harappan culture and is by far one of the largest Harappan sites in India.
- The site shows the sequential development of the Indus culture in the now dried-up Saraswati basin.
Major findings at Rakhigarhi
- Findings confirm both early and mature Harappan phases and include 4,600-year-old human skeletons, fortification and bricks.
- Digging so far reveals a well-planned city with 92 m wide roads, a bit wider than in Kalibangan.
- The pottery is similar to Kalibangan and Banawali.
- Pits surrounded by walls have been found, which are thought to be for sacrificial or some religious ceremonies.
- There are brick-lined drains to handle sewage from the houses.
- Terracotta statues, weights, bronze artefacts, comb, copper fish hooks, needles and terracotta seals have also been found.
- A bronze vessel has been found which is decorated with gold and silver.
- A granary belonging to the mature Harappan phase has been found here.
- Fire altars structures were revealed in Rakhigarhi.
PYQ:
[2021] Which one of the following ancient towns is well-known for its elaborate system of water harvesting and management by building a series of dams and channelizing water into connected reservoirs?
(a) Dholavira
(b) Kalibangan
(c) Rakhigarhi
(d) Ropar |
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ramapo Fault, Appalachian Mountains
Mains level: NA
Why in the news?
- An earthquake of magnitude 4.8 hit the New York City in a rare event.
- The Ramapo Fault in Appalachian Mountains near New Jersey is a being considered as a reason behind this earthquake.
Appalachian Mountains
- The Appalachian Mountains extend from the Canadian province of Newfoundland and Labrador in the north to central Alabama in the southern US.
- The total length of the Appalachian Mountain range is approximately 2,200 miles (3,500 kilometers), making it one of the longest mountain chains in the world.
- Geologically, it is one of the oldest mountain ranges on Earth, formed over 480 million years ago during the Ordovician Period. They are considered a Paleozoic mountain range.
- They were formed through a series of tectonic collisions and uplift events, including the assembly of the supercontinent Pangaea.
- The highest peak in the range is Mount Mitchell in North Carolina, standing at an elevation of 6,684 feet (2,037 meters) above sea level.
- The Appalachian Mountains hold cultural significance for various indigenous tribes, including the Cherokee, as well as early European settlers who established communities in the region.
|
About Ramapo Fault
- Fault lines are fractures in the Earth’s crust that facilitate movement of tectonic plates, triggering earthquakes.
- The Ramapo Fault is resulted from tectonic activity associated with the breakup of the supercontinent Pangaea during the Mesozoic Era.
- It is primarily a right-lateral strike-slip fault, formed by horizontal movement along the fault line due to the ongoing motion between the North American and Eurasian plates.
- While the Ramapo Fault is not as seismically active as faults in other regions, it has experienced earthquakes in the past and remains a potential source of seismic hazards.
Geographical Distribution:
- The fault extends across three states in the northeastern United States: Pennsylvania, New Jersey, and New York.
- The fault crosses various topographic features, including rift valleys, hills, and ridges, reflecting the diverse geological history of the region.
- It intersects with the Appalachian Mountains, influencing the overall topography of the surrounding areas.
PYQ:
[2012] When you travel in Himalayas, you will see the following:
1. Deep gorges
2. U-turn river courses
3. Parallel mountain ranges
4. Steep gradients causing land-sliding
Which of the above can be said to be the evidences for Himalayas being young fold mountains?
(a) 1 and 2 only
(b) 1, 2 and 4 only
(c) 3 and 4 only
(d) 1, 2, 3 and 4 |
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: CIDC Vishwakarma Awards , CSR
Mains level: NA
Why in the news?
SJVN Limited has won two prestigious awards at the 15th Construction Industry Development Council (CIDC) Vishwakarma Awards 2024, for their Corporate Social Responsibility (CSR) initiatives.
About CIDC Vishwakarma Awards
- The CIDC Vishwakarma Awards is one of the most esteemed recognitions within the construction sector.
- It was launched in the year 2005.
- The awards are named after Vishwakarma, the divine architect and engineer in Hindu mythology, symbolizing craftsmanship, creativity, and skill in construction.
Key details about the Award
- Organizer: The awards are organized by the Construction Industry Development Council (CIDC), which is a body established by the GoI to promote the construction industry’s development and growth.
- Categories: The awards cover a wide spectrum of categories, including:
-
- Construction Projects: Recognizing outstanding projects across different sectors such as residential, commercial, infrastructure, and industrial construction.
- Construction Technologies: Honoring innovative technologies and techniques that enhance construction processes, efficiency, and sustainability.
- Construction Equipment: Acknowledging advancements in construction machinery, tools, and equipment.
- Health, Safety, and Environment: Recognizing initiatives and practices that prioritize worker safety, environmental protection, and sustainability in construction.
- Individual Achievements: Celebrating the contributions of professionals and leaders who have made significant impacts in the construction industry.
- Others: Additional categories may include awards for sustainability, CSR initiatives, and emerging trends in construction.
PYQ:
[2020] In rural road construction the use of which of the following is preferred for ensuring environmental sustainability or to reduce carbon footprint?
1. Copper slag
2. Cold mix asphalt technology
3. Geotextiles
4. Hot mix asphalt technology
5. Portland cement
Select the correct answer using the code given below:
(a) 1, 2 and 3 only
(b) 2, 3 and 4 only
(c) 4 and 5 only
(d) 1 and 5 only |
Back2Basics: Corporate Social Responsibility (CSR)
|
Description |
| What is it? |
Self-regulating business model for social and environmental impact. |
| Regulation in India |
Mandated under Companies Act, 2013 (amendment in 2014). |
| Investment Areas |
Promote rural development, healthcare, education, environment, etc. |
| CSR Committee |
Mandatory for companies meeting Rs 500 Cr net worth or Rs 1000 Cr turnover criteria. |
| Spending Requirement |
At least 2% of average net profits of the last three financial years. |
| Applicability Criteria |
Net worth >= Rs 500 Cr, Turnover >= Rs 1000 Cr, or Net profit >= Rs 5 Cr. |
| Adjustment for New Cos. |
Use average net profits of preceding years to calculate spending. |
| Applicability Period |
Applies before the completion of three financial years for companies. |
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Climate Change; GLOFS;
Mains level: Climate change and concerns;
Why in the news?
Recently, the Uttarakhand government has constituted two teams of experts to evaluate the risk posed by five potentially hazardous glacial lakes in the region.
Context:
- The Hazardous Glacial Lakes are prone to Glacial Lake Outburst Floods (GLOFs), the kind of events that have resulted in several disasters in the Himalayan states in recent years.
- The National Disaster Management Authority (NDMA), which operates under the Union Ministry of Home Affairs, has identified 188 glacial lakes in the Himalayan states that can potentially be breached because of heavy rainfall. Thirteen of them are in Uttarakhand.
About Glacial Lake Outburst Floods (GLOFs):
GLOFs are disaster events caused by the abrupt discharge of water from glacial lakes large bodies of water that sit in front of, on top of, or beneath a melting glacier. As a glacier withdraws, it leaves behind a depression that gets filled with meltwater, thereby forming a lake. Example: 4 october 2023 GLOFs in Sikkim. |
Factors behind the GLOFs:
- Avalanches or Landslides: Incidents such as avalanches or landslides can also impact the stability of the boundary around a glacial lake, leading to its failure, and the rapid discharge of water.
- Due to climate change: Rising surface temperatures across the globe, including India, have increased the risk of GLOFs. Studies have shown that around 15 million people face the risk of sudden and deadly flooding from glacial lakes, which are expanding and rising in numbers due to global warming.
- Rapid infrastructure development in vulnerable areas has also contributed to the spike in such incidents.
- Sizable ice chunks in the lake: GLOFs can be triggered by various reasons, including glacial calving, where sizable ice chunks detach from the glacier into the lake, inducing sudden water displacement.
Why are GLOFs under the spotlight?
- Increased Frequency of GLOFs: Since 1980, GLOFs have become more frequent in the Himalayan region, particularly in southeastern Tibet and the China-Nepal border area. This indicates a concerning trend of glacial melting and lake formation as per Institute of Tibetan Plateau Research in China
- Extent of Potential Risk: The analysis by Institute of Tibetan Plateau Research in China suggests that approximately 6,353 sq km of land could be at risk from potential GLOFs.
- Regional Impacts: Another analysis conducted by Caroline Taylor, Rachel Carr, Stuart Dunning (Newcastle University, UK), Tom Robinson (University of Canterbury, New Zealand), and Matthew Westoby (Northumbria University, UK) indicates that GLOFs are not just a localized issue but have broader regional impacts.
- Around 3 million people in India and 2 million in Pakistan are identified as facing the risk of GLOFs, highlighting the potential humanitarian consequences of these events.
What is the situation in Uttarakhand?
- Past GLOF events: Uttarakhand has experienced two major GLOF events in recent years. The first occurred in June 2013, affecting large parts of the state, particularly the Kedarnath valley, resulting in significant loss of life.
- The second event happened in February 2021 in Chamoli district, leading to flash floods due to the bursting of a glacier lake.
- Categorization of Glacial Lakes: Uttarakhand has 13 glacial lakes categorized into three risk levels: ‘A’, ‘B’, and ‘C’.
- Five highly sensitive lakes fall into the ‘A’ category, including Vasudhara Tal in the Dhauliganga basin (Chamoli district), Maban Lake, Pyungru Lake, and two unclassified lakes in Pithoragarh district.
- Size and Elevation of High-Risk Lakes: The lakes in the ‘A’ category have areas ranging from 0.02 to 0.50 sq km and are situated at elevations between 4,351 to 4,868 meters above sea level. These characteristics make them particularly vulnerable to glacial lake outburst events.
- Impact of Rising Temperatures: A 2021 study by the Potsdam Institute for Climate Research (PIK) and The Energy and Resources Institute (TERI) suggests that rising surface temperatures could worsen the situation in Uttarakhand.
- The state’s annual average maximum temperature may increase by 1.6-1.9 degrees Celsius between 2021-2050, potentially exacerbating the risk of GLOFs.
Conclusion: Uttarakhand government forms expert teams to assess risk from 5 hazardous glacial lakes prone to GLOFs. With rising temperatures and past disasters, urgent action is needed to mitigate potential catastrophic flooding.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: International Organisation; NATO;
Mains level: Concerns about NATO;
Why in the News?
NATO grandly commemorates its 75th anniversary on April 4, 2024.
Present Concerns about NATO:
- Changed Objective: NATO was established to defend its member states from aggression but has engaged in offensive military actions.
- Cause of Military conflicts worldwide: Over the last seven decades, NATO has initiated or participated in more than 200 military conflicts worldwide, including major ones. Examples of NATO’s military interventions include the bombing of Yugoslavia, invasion of Iraq, disruption of statehood in Libya, military interference in Syria, and combating terrorism in Afghanistan.
- Role in the creation of ISIS: Critics argue that instead of bringing peace and stability, NATO’s actions have led to damage, casualties, destruction, and alienation. There is a perception that the US, NATO’s leader, played a role in the creation of ISIS.
- Provoking Russia-Ukraine War: Its expansion since 1991, despite assurances to the contrary, and its actions in Ukraine are seen as provocative moves against Russia. Russia has shown restraint in response to NATO’s actions, but NATO’s behavior remains unchanged.
- Maintaining Western Hegemony: In stark contrast to its professed peaceful ideals, NATO engages in warfare or issues threats of attack against any state that rejects the established liberal “rules-based order.” for example invasion of Iraq and execution of Saddam Hussein
- Increase presence in Indo-Pacific: The US has been actively establishing smaller multilateral arrangements, like AUKUS, the US-Japan-South Korea trio, and the Tokyo-Seoul-Canberra-Wellington quartet, to involve them in practical collaboration with NATO.
BACK2BASICS
What is NATO?
NATO, founded in 1949, is an intergovernmental military alliance initially aimed at collective defense against potential aggression, notably from the Soviet Union during the Cold War. However, its role has expanded over time to address various security challenges beyond its original purpose.
Membership:
- Starting Members: In starting only 12 founding members of NATO were Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom, and the United States.
- Expansion: NATO has expanded since its founding, with new member countries joining in multiple rounds. The alliance currently consists of 32 member countries.
Objectives:
- Core mission: NATO’s core mission is collective defense, as articulated in Article 5 of the North Atlantic Treaty. This article specifies that an attack on any member nation will be regarded as an attack on all, triggering a collective response from the members.
- Role in crisis management: Besides its core function of collective defense, NATO also participates in crisis management activities. These include conflict prevention, peacekeeping, and stabilization efforts in diverse regions globally.
|
Conclusion: NATO, founded in 1949 for collective defense, faces criticisms for engaging in offensive actions, causing global conflicts, and perceived roles in creating ISIS and provoking tensions with Russia. It has expanded and diversified its roles beyond its original purpose.
Mains Question for practice
Q Examine the key concerns raised about NATO’s actions and their implications for global security.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Pharmaceutical Pricing Authority (NPPA)
Mains level: Achievement of India's Pharmaceutical Industry and challenges
Why in the News?
Recently, the National Pharmaceutical Pricing Authority (NPPA) implemented a 0.00551% increase in the Maximum Retail Price (MRP) for scheduled formulations of drugs starting from the commencement of the fiscal year 2024–25.
Context:
- The Department of Pharmaceuticals has released its yearly update of revised ceiling prices for 923 scheduled drug formulations and adjusted retail prices for 65 formulations.
- These revised ceiling rates took effect on April 1. The Central Government attributes the price adjustments to fluctuations in the Wholesale Price Index (WPI).
What is the National List of Essential Medicines?
- As per the World Health Organisation (WHO), Essential Medicines are those that satisfy the priority healthcare needs of the population.
- Ministry of Health and Family Welfare hence prepared and released the first National List of Essential Medicines of India in 1996 consisting of 279 medicines.
- Currently, India has approximately 400 molecules and 960 formulations covered under the National List of Essential Medicines.
- The prices of non-essential drugs are also monitored by the government to ensure that the manufacturers of these drugs don’t increase MRP by more than 10% annually.
|
The issue of the present Current Price Increase:
- Manufacturers are allowed to increase the Maximum Retail Price (MRP) of scheduled formulations based on the Wholesale Price Index (WPI) without prior government approval.
- Pharmaceutical companies argue that a rational increase in the cost of drugs is necessary for quality control.
- Government’s Stance on Current Hike: Despite the recent increase, the government suggests that it will only marginally impact the cost of essential drugs such as antibiotics and painkillers.
- The National Pharmaceutical Pricing Authority (NPPA) follows the Drug Price Control Order (DPCO) of 2013, allowing price hikes in line with changes in the WPI index.
- Medicine prices were raised by 12% last year and 10% in 2022.
BACK2BASICS:
- National Pharmaceutical Pricing Authority (NPPA):
The National Pharmaceutical Pricing Authority was set up as an attached office of the Department of Chemicals and Petrochemicals (now Department of Pharmaceuticals since July 2008) on 29th August 1997. It has been entrusted inter-alia, with the following functions
- Enforce the provision: To implement and enforce the provisions of the Drugs Price Control Order (DPCO), 1995/2013 under the powers delegated to it and to undertake and/or sponsor relevant studies concerning the pricing of drugs/formulations.
- Monitor Demand and supply: To monitor the availability of drugs, identify shortages, if any, and take remedial steps. To collect/maintain data on production, exports and imports, market share of individual companies, profitability of companies, etc. for bulk drugs and formulations.
- Manage legal matters: To deal with all legal matters arising out of the decisions of the Authority. To render advice to the Central Government on changes/revisions in the drug policy.
- Assist Government: To help the Central Government in the parliamentary matters relating to drug pricing.
- Drugs (Prices Control) Order (DPCO):
- The Drugs Prices Control Order, issued by the Government of India under Section 3 of the Essential Commodities Act, 1955, aims to govern and regulate drug prices.
- Provides the list of price-controlled drugs: The Order interalia provides the list of price-controlled drugs, procedures for fixation of prices of drugs, method of implementation of prices fixed by Govt., penalties for contravention of provisions, etc.
- Regulate only listed drugs: According to the regulations outlined in DPCO 2013, the National Pharmaceutical Pricing Authority oversees and regulates only the prices of drugs listed in the National List of Essential Medicines (NLEM).
|
Achievements of India’s Pharmaceutical Industry:
- Advanced Industries: India boasts one of the most advanced pharmaceutical industries among developing nations, ranking third globally in terms of volume and 13th in terms of value.
- Export Destinations: The United States serves as the largest export destination for bulk drugs from India. This is noteworthy considering the stringent regulatory standards in the US.
- Other significant export destinations include Brazil, Bangladesh, Turkey, China, the Netherlands, Nigeria, Vietnam, and Egypt.
- India’s Role as a Supplier for Global South (developing countries): India ranks among the top five suppliers of bulk drugs to several developing countries, including Bangladesh, Nigeria, Vietnam, Egypt, Iran, and Pakistan.
- Despite China’s dominance as a larger supplier, India remains a substantial exporter in this regard.
The challenge is Dependency on China: Despite India’s robust pharmaceutical sector, it heavily relies on China for the supply of bulk drugs and drug intermediates. Approximately two-thirds of India’s total imports in this category originate from China.
Conclusion: The recent price increase by the NPPA aligns with fluctuations in the Wholesale Price Index, aiming to regulate drug costs. India’s pharmaceutical industry faces challenges of import dependency on China, despite its global presence.
Mains PYQ
Q What do you understand by Fixed Dose Drug Combinations (FDCs)? Discuss their merits and demerits. (UPSC IAS/2013)
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Basel Norms, Endgame
Mains level: NA
Why in the news?
The US Federal Reserve recently announced stricter bank capital requirements known as the “Basel III endgame” proposal.
What is Bank Capital?
- Bank capital is a measure of bank shareholders’ investment in the business.
- In contrast to deposits or money a bank has borrowed, capital does not have to be paid back.
- In other words, it is a cushion or buffer that protects a bank from insolvency—and, thus, reduces the risk that a bank failure triggers system-wide financial instability.
- A bank that has sufficient capital can cover customers’ deposits even if the loans it has made aren’t repaid or if its investments drop in value.
|
What are Basel Norms?
- Basel, Switzerland, hosts the Bureau of International Settlement (BIS), fostering collaboration among central banks to establish global banking standards.
- The Basel Committee on Banking Supervision (BCBS), established in 1974 formulates broad supervisory guidelines known as the Basel framework.
- Its purpose is to ensure banks maintain adequate capital to meet obligations and absorb losses.
- India has adopted Basel standards to align its banking practices with global norms.
|
Description |
| Basel I |
- Introduced in 1988.
- Known as the Basel Capital Accord.
- Focused on credit risk.
- Set a minimum capital requirement of 8% of risk-weighted assets (RWA).
- Assets were assigned risk weights based on their risk profile.
- Adopted by India in 1999.
|
| Basel II |
- Published in June 2004.
- Aimed to refine and reform Basel I.
- Introduced three pillars:
- Capital Adequacy Requirements
- Supervisory Review
- Market Discipline
- Increased focus on risk management and disclosure.
- Yet to be fully implemented in India and abroad.
|
| Basel III |
- Released in 2010 after the 2008 financial crisis.
- Aimed to strengthen the banking system.
- Made banking activities more capital-intensive.
- Focus on four key parameters:
- Capital
- Leverage
- Funding
- Liquidity
- Designed to promote a more resilient banking system.
|
| *Basel IV
|
- In 2017, the Basel Committee agreed on changes to the global capital requirements as part of finalising Basel III.
- The changes are so comprehensive that they are increasingly seen as an entirely new framework, commonly referred to as “Basel IV”.
- Set to take effect under transition rules from 2025.*
|
Proposed Changes under Basel III Endgame
- Expansion of Scope: The proposal aims to extend the strictest risk-based capital approach to more banks, lowering the asset threshold from $700 billion to $100 billion. This would encompass around 37 large banks in the U.S.
- Standardized Measure for Capital Requirements: Regulators propose curtailing banks’ use of internal models to calculate capital requirements for loans, advocating for a standardized measure for all banks to ensure uniform risk assessment.
- Increased Capital for Trading and Operational Risks: The proposal mandates higher capital reserves for risks linked to trading activities and operational challenges, requiring banks to utilize standard models for risk assessment instead of internal ones.
- Changes to Capital Calculations for Portfolios: Banks with assets exceeding $100 billion must reflect gains and losses in portfolios categorized as “available for sale” in their capital calculations, aiming for a more precise depiction of a bank’s risk exposure.
Challenges created by the new Norms
- Operational Risks: A substantial portion of the proposed capital increment targets banks’ operational risks, encompassing potential losses arising from internal processes, people, systems, or external events.
- Non-Traditional Banking Activities: Entities engaged in trading, market-making, wealth management, and investment banking, will face more pronounced capital requirements due to altered risk assessment and operational risk calculations.
- Industry-specific Concerns: Additionally, specific industries, like renewable energy, anticipate repercussions, fearing that increased capital requirements could undermine the effectiveness of tax incentives for projects targeting climate change.
Arguments in Favor of Increasing Capital
- Financial Stability: Proponents argue that heightened capital requirements are imperative for safeguarding financial stability, averting bank failures, and minimizing the need for government bailouts.
- Prudent Banking Practices: They contend that current standards inadequately address bank risks and that increased capital incentivizes prudent banking practices.
- Resilient Banking System: Economists suggests that the social costs of higher capital requirements are minimal compared to the benefits of a more resilient financial system.
PYQ:
2015:
‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to:
(a) Develop national strategies for the conservation and sustainable use of biological diversity
(b) Improve banking sector’s ability to deal with financial and economic stress and improve risk management
(c) Reduce the greenhouse gas emissions but places a heavier burden on developed countries
(d) Transfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals
Practice MCQ:
What is the primary objective of “Basel III Endgame” in the banking sector?
(a) To encourage speculative investments by banks to boost short-term profits.
(b) To ensure the stability of the global financial system by strengthening the regulation, supervision, and risk management practices of banks.
(c) To encourage banks to invest more in less-risky assets to stimulate economic growth.
(d) To limit the role of central banks in regulating commercial banks and promote market-driven banking practices. |
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: CAR-T Cell Therapy, NexCAR19
Mains level: NA
Why in the news?
- President Droupadi Murmu has unveiled ‘NexCAR19’ India’s first indigenously-developed CAR T-cell therapy for cancer treatment.
What is CAR-T Cell Therapy?
| What is it? |
- CAR-T cell therapy stands for Chimeric Antigen Receptor T cell therapy.
- It is a type of cancer immunotherapy that uses the patient’s own T cells, genetically modified in a laboratory to enhance their ability to locate and destroy cancer cells.
|
| How does it work? |
- T cells are white blood cells responsible for identifying and fighting illness and infection.
- Each T cell has a receptor that can recognize antigens (proteins or molecules recognized by the immune system).
- Cancer cells may have antigens that the immune system does not recognize as abnormal, allowing cancer to evade the immune response.
- CAR-T cells are genetically engineered in the lab to express a new receptor that can bind to cancer cells and effectively kill them.
|
| Therapy Process |
The process involves several steps, including:
1. Collecting T Cells: Blood is drawn from the patient’s arm, and T cells are separated from the blood using an apheresis machine.
2. Engineering T Cells: In a laboratory, the T cells are modified by adding a manufactured CAR, and they are allowed to multiply and grow.
3. Infusing CAR-T Cells: Once enough CAR-T cells are prepared, they are injected back into the patient’s arm.
- Chemotherapy may be recommended before CAR-T cell infusion to enhance treatment effectiveness.
- The process can take place in an outpatient infusion center or a hospital setting.
|
| Cancers Treated |
- CAR-T cell therapy is effective against certain types of cancer, especially when other treatments are ineffective.
- It is currently FDA-approved for treating haematological malignancies, including leukemia, lymphoma, and multiple myeloma.
|
NexCAR19: India’s Indigenously Developed CAR-T Therapy
- NexCAR19 is designed to target cancer cells carrying the CD19 protein, a marker on cancer cells, enhancing precision in treatment.
- It has been developed jointly by IIT Bombay and the Tata Memorial Centre.
- Initially approved for patients aged 15 and above with B-cell lymphomas who did not respond to standard treatments, leading to relapse or recurrence.
Effectiveness and Unique Features
- Approximately 70% of patients respond to NexCAR19 treatment, with some achieving complete remission.
- Lab and animal studies indicate lower drug-related toxicities, including reduced neurotoxicity and Cytokine Release Syndrome (CRS).
- Trials for paediatric patients are underway at Tata Memorial Hospital, ensuring broader applicability.
Availability and Affordability
- ImmunoACT is in the process of securing licenses and partnering with hospitals, including Tata Memorial, Nanavati, Fortis, and Jaslok, across multiple cities.
- Initially priced at Rs 30-40 lakh, ImmunoACT aims to eventually reduce the cost to Rs 10-20 lakh, making the therapy more accessible.
PYQ:
2017:
Stem cell therapy is gaining popularity in India to treat a wide variety of medical conditions including leukaemia, Thalassemia, damaged cornea and several burns. Describe briefly what stem cell therapy is and what advantages it has over other treatments?
Practice MCQ:
With reference to the CAR-T Cell Therapy, consider the following statements:
1. T cells are Red Blood Cells responsible for identifying and fighting illness and infection.
2. Each T cell has a receptor that can recognize antigens (proteins or molecules recognized by the immune system).
Which of the given statements is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2 |
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Konda Reddi Tribe, Indian Laurel Tree , PVTGs, Papikonda NP
Mains level: NA
Why in the news?
- Forest Department officials’ examination of an Indian laurel tree (Terminalia tomentosa) in Papikonda National Park has showcased its remarkable water storage capability.
- This discovery sheds light on the indigenous knowledge shared by the Konda Reddi tribe regarding the tree’s unique attributes.
Konda Reddi Tribe
- The Konda Reddis are a Particularly Vulnerable Tribal Group (PVTG) residing in the Godavari riverbanks and the hilly forest areas of Godavari and Khammam districts in Andhra Pradesh.
- The family structure is patriarchal and patrilocal, with monogamy as the norm with some exceptions.
- The Konda Reddis are primarily Hindus with folk customs, which involves local traditions and worship of community-level deities.
- They have their own social control institution called ‘Kula Panchayat’.
- Each village has a traditional headman known as ‘Pedda Kapu’, whose role is hereditary.
- Their primary occupation is shifting cultivation, relying on forest flora and fauna for sustenance.
- Jowar cultivation is prevalent, serving as their staple food.
- They collect and sell non-timber forest products like tamarind, adda leaves, myrobolan, and broomsticks to supplement their income.
About Papikonda NP
- Papikonda NP is located in the East Godavari and West Godavari districts of Andhra Pradesh.
- It was established as a national park in the year 2008.
- It is characterized by hilly landscapes, dense moist deciduous forest.
- The presence of the Godavari River cuts through the Papikonda hill range of Eastern Ghats.
|
About Indian Laurel Tree
|
Description |
| Scientific Name |
Terminalia tomentosa |
| Common Names |
Indian Laurel Tree, Crocodile Bark Tree, Anjan Tree |
| Habitat |
Found in Deciduous forests |
| Bark |
Scissored and cracked bark, resembling crocodile skin (From November to February) |
| Water Storage Ability |
Only 5-10% of trees observed to store water in the stem |
| Water Storage Mechanism |
Development of lateral ridge, known as a wing, on trunk, indicating water presence |
| Water Collection |
4-6 litres of potable water can be collected from a fully grown tree by making a small hole in the wing |
| Traditional Use |
Used by tribal communities, such as the Konda Reddi Tribe, as a water source during dry seasons |
| Adaptability |
Thrives in various conditions, including harsh weather and drought |
PYQ:
2015:
In India, in which one of the following types of forests is teak a dominant tree species?
(a) Tropical moist deciduous forest
(b) Tropical rain forest
(c) Tropical thorn scrub forest
(d) Temperate forest with grasslands
Practice MCQ:
The Indian Laurel Tree (Terminalia tomentosa) recently seen in news is famous for its:
(a) Ability to store water in its trunk
(b) Therapeutic use in the treatment of Cancer
(c) Aromatic Timber
(d) Pulp for paper industry |
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ayushman Bharat Health Accounts (ABHA), AB-PMJAY
Mains level: NA
Why in the news?
This newscard is an excerpt from an explainer published in the PIB.
Ayushman Bharat Health Accounts (ABHA)
- ABHA, an integral part of the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), serves as a link for all health records of an individual.
- It is a sub-component of the Ayushman Bharat Digital Mission launched in September 2021.
- It is a 14-digit id employed to uniquely identify individuals, verify their identity, and connect their health records (with their consent) across various systems and stakeholders.
Features of ABHA
- Cashless Transactions: ABHA enables cashless transactions for eligible beneficiaries, reducing the financial burden during medical emergencies.
- Electronic Health Records (EHR): It integrates electronic health records, facilitating storage, and retrieval of patient information for streamlined healthcare delivery.
- Portability: ABHA accounts are portable across various healthcare providers under the Ayushman Bharat scheme, ensuring seamless access to services.
- Real-time Monitoring: Incorporating real-time monitoring mechanisms to track fund utilization, ABHA ensures efficient allocation and prevents misuse.
Various Components
- Beneficiary Identification: ABHA involves the identification and registration of eligible beneficiaries under the Ayushman Bharat scheme, assigning a unique health identification number (UHID).
- Funds Management: It manages the allocation and disbursement of funds for healthcare services, ensuring prompt and secure transfers.
- Claim Settlement: ABHA processes and settles claims submitted by healthcare providers, verifying authenticity, and disbursing payments.
- Audit and Oversight: Incorporating audit mechanisms to monitor fund utilization, ABHA ensures compliance with regulations and maintains system integrity.
Back2Basics: Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)
|
Details |
| Umbrella Scheme |
- Ayushman Bharat
- Incepted in National Health Policy 2017, to achieve the vision of Universal Health Coverage (UHC)
|
| Launch Year |
2018 |
| Components |
- Health and Wellness Centres (HWCs)
- Pradhan Mantri Jan Arogya Yojana (PM-JAY)
|
| Pradhan Mantri Jan Arogya Yojana (PM-JAY) |
- Offers a sum insured of Rs. 5 lakh per family for secondary and tertiary care
- Provides cashless and paperless access to services at any empanelled hospital across India
- Portable scheme, allowing beneficiaries to avail treatment at any PM-JAY empanelled hospital
|
| Coverage |
- 3 days pre-hospitalisation and 15 days post-hospitalisation
- Includes diagnostic care and expenses on medicines
- No restriction on family size, age, or gender
- Covers all pre-existing conditions from day one
|
| Beneficiaries |
Identified through Socio-Economic Caste Census (SECC) data |
| Funding |
- Shared funding: 60:40 for states and UTs with legislature, 90:10 in Northeast states and J&K,
- Himachal Pradesh, and Uttarakhand, 100% central funding for UTs without legislature
|
| Nodal Agency |
National Health Authority (NHA)
- Autonomous entity under the Society Registration Act, 1860
- Responsible for effective implementation of PM-JAY in alliance with state governments
State Health Agency (SHA)
- Apex body of the State Government responsible for the implementation of AB PM-JAY in the State
|
PYQ:
2021:
“Besides being a moral imperative of a Welfare State, primary health structure is a necessary precondition for sustainable development.” Analyse.
Practice MCQ:
Consider the following statements about the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY):
1. 3 days pre-hospitalisation and 15 days post-hospitalisation.
2. Includes diagnostic care and expenses on medicines.
3. No restriction on family size, age, or gender.
4. Beneficiaries are identified from national family health survey.
How many of the above discussed features is/are correct?
(a) One
(b) Two
(c) Three
(d) Four |
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
Attend Now