Note4Students
From UPSC perspective, the following things are important :
Prelims level: Small Finance Bank
Mains level: Not Much
The Reserve Bank of India has issued a small finance bank (SFB) license to a consortium of fintech companies BharatPe and Centrum Financial Services Ltd.
What is a SFB?
- Small finance banks (SFBs) are a type of niche banks in India.
- They can be promoted either by individuals, corporate, trusts or societies.
- They are governed by the provisions of Reserve Bank of India Act, 1934, Banking Regulation Act, 1949 and other relevant statutes.
- They are established as public limited companies in the private sector under the Companies Act, 2013.
- Banks with a SFB license can provide basic banking service of acceptance of deposits and lending.
Objectives of setting-up an SFB
- To provide financial inclusion to sections of the economy not being served by other banks, such as small business units, small and marginal farmers, micro and small industries and unorganized sector entities
Key features of SFBs
- Existing non-banking financial companies (NBFC), microfinance institutions (MFI) and local area banks (LAB) can apply to become small finance banks.
- The banks will not be restricted to any region.
- 75% of its net credits should be in priority sector lending and 50% of the loans in its portfolio must in ₹25 lakh.
- The firms must have a capital of at least ₹200 crore.
- The promoters should have 10 years’ experience in banking and finance.
- Foreign shareholding will be allowed in these banks as per the rules for FDI in private banks in India.
Back2Basics: Small Payments Bank Vs. Payment Bank
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Global Hunger Index
Mains level: Food and nutrition security of India
The Global Hunger Index 2021 has ranked India at 101 positions out of a total 116 countries.
Note the parameters over which the GHI is based and their weightage composition.
Global Hunger Index (GHI)
- The Global Hunger Index is a peer-reviewed annual report, jointly published by Concern Worldwide and Welthungerhilfe.
- It determines hunger on a 100-point scale, where 0 is the best possible score (no hunger) and 100 is the worst.
- It is designed to comprehensively measure and track hunger at the global, regional, and country levels.
- The aim of the GHI is to trigger action to reduce hunger around the world.
For each country in the list, the GHI looks at four indicators:
- Undernourishment (which reflects inadequate food availability): calculated by the share of the population that is undernourished (that is, whose caloric intake is insufficient)
- Child Wasting (which reflects acute undernutrition): calculated by the share of children under the age of five who are wasted (that is, those who have low weight for their height)
- Child Stunting (which reflects chronic undernutrition): calculated by the share of children under the age of five who are stunted (that is, those who have low height for their age)
- Child Mortality (which reflects both inadequate nutrition and unhealthy environment): calculated by the mortality rate of children under the age of five
India’s (poor) performance
- India is among the 31 countries where hunger has been identified as serious.
- Only 15 countries fare worse than India.
- Some of these include Afghanistan (103), Nigeria (103), Congo (105), Mozambique (106), Sierra Leone (106), Timor-Leste (108), Haiti (109), Liberia (110), Madagascar (111) and Somalia (116).
- India was also behind most of the neighbouring countries.
- Pakistan was placed at 92 rank, Nepal at 76 and Bangladesh also at 76.
Reasons for such poor performance
- Poor maternal health: Mothers are too young, too short, too thin and too undernourished themselves, before they get pregnant, during pregnancy, and then after giving birth, during breast-feeding.
- Poor sanitation: Poor sanitation, leading to diarrhoea, is another major cause of child wasting and stunting.
- Food insecurity: Low dietary diversity in India is also a key factor in child malnutrition.
- Poverty: Almost 50 million households in India are dependent on these small and marginal holdings.
- Livelihood loss: The rural livelihoods loss after COVID and lack of income opportunities other than the farm sector have contributed heavily to the growing joblessness in rural areas.
Issues over credibility of GHI
- India has ranked among many African countries while it is among the top 10 food-producing countries in the world.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Geographical Indication
Mains level: Not Much
In Tamil Nadu, the Karuppur kalamkari paintings and the Kallakurichi wood carvings recently received the geographical indication (GI) tags.
[A] Kallakurichi Wood Carvings
- The Kallakurichi wood carvings are a unique form of wood carving practiced in Tamil Nadu.
- It involves the application of ornamentation and designs, derived from traditional styles by the craftsmen.
- They are mainly practiced in Kallakurichi, Chinnaselam and Thirukkovilur taluks of Kallakurichi district.
[B] Karuppur Kalamkari Paintings
- Kalamkari paintings are done on pure cotton cloth, predominantly used in temples for umbrella covers, cylindrical hangings, chariot covers and asmanagiri (false ceiling cloth pieces).
- Documentary evidence shows that kalamkari paintings evolved under the patronage of Nayaka rulers in the early 17th century.
Back2Basics: Geographical Indication
- A GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
- Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
- India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 w.e.f. September 2003.
- GIs have been defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
- GI is granted for a term of 10 years in India. As of today, more than 300 GI tags has been allocated so far in India (*Wikipedia).
- The tag stands valid for 10 years.
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From UPSC perspective, the following things are important :
Prelims level: UFill
Mains level: NA
The Bharat Petroleum Corporation Limited (BPCL) has launched an automated fuelling technology -UFill- to ensure that its customers have a better experience at outlets.
What is UFill?
- UFill functionality, which has been described as swift, secure and smart, has been launched in 65 cities and will soon be launched across the country.
- It does not need any app download, and is payment app agnostic.
- Customer can use any payment app already downloaded on his/her phone.
- It offers real time QR and voucher code through SMS and is accepted at all BPCL Fuel Stations where the functionality is enabled.
Key features
- UFill aims to improve customer’s turn-around time (TAT) at fuel outlet and increase transactional transparency, thereby providing enhanced retail like experience.
- The technology provides the customer with control of fuelling as well as touch less pre-payment solution.
- There is no need to check zero before fuelling or final reading, the dispensing unit will automatically dispense the exact quantity of fuel.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Impact of funding surge on economy
Mains level: Paper 3- PE funding in India
Human traits driving financial markets
- To imitate and to conform — do what others around us are doing — are common and very powerful human tendencies.
- In financial markets, “herd behaviour” is a warning sign: When markets are doing well, people invest for no other reason than their neighbours having become wealthier (and vice versa).
- There is another human trait that affects markets — success increases risk appetite.
- If someone’s financial investments work, they are very likely to invest more, and ignore safety measures.
Factors driving the private equity investments
- Better physical infrastructure (rural roads, electrification, phone penetration, data access).
- Several layers of innovation (universal bank account access, surging digital payments on the “India Stack”).
- 45 lakh software developers (largest in the world).
- Maturing industries (for example, as research budgets of Indian pharmaceutical manufacturers have grown 10 times in the last 15 years.
- The ecosystem can take on more challenging projects now, versus just generic filings a decade back).
- Strong medium-term economic growth prospects create fertile ground for private equity investments.
- Investors with patient capital (knowing that the businesses will not make money for several years) are now betting on and financing a faster transition to electric vehicles than was earlier anticipated.
- In financial services, innovative methods of lending, insurance underwriting and wealth management are being experimented with, which are likely to only expand the market meaningfully.
- An army of Software-as-a-Service (SaaS) firms have been funded in the hope of revolutionising the development and distribution of software.
- There are also new-age distribution and logistics companies, education technology firms, and branded consumer goods suppliers, in addition to “normal” e-commerce, gaming and food-delivery startups.
Risks involved in a rapid infusion of capital
- Allocation inefficiency: Theoretically, an economy India’s size is capable of absorbing the $52 billion of PE funding seen over the last 12 months, but in practice, such a rapid surge creates allocation inefficiency.
- As investors rush to deploy ever-larger sums of money, they appear to be running out of companies to invest in that can productively deploy this capital.
- The result is companies’ valuations rising manifold within months and small firms getting more capital inflows than they can deploy, often resulting in wasteful business plans.
- When investors rush to deploy funds, the risk of fraud rises — inadequate disclosures and weak due diligence are compounded by incentives to misrepresent financial data.
- The discovery of any such frauds would likely freeze funding for the industry for a few quarters.
Why now?
- India has never lacked entrepreneurs, but lacked risk capital given the low per capita wealth.
- As savers like pension and insurance funds in the developed world responded to record-low interest rates by allocating more to PE as an asset class, private funding markets have grown rapidly in the last 15 years globally.
- In India, PE funding has exceeded public-market fund-raising every year in the past decade.
- While earlier, only a few business groups could muster sizeable amounts of risk capital to establish new businesses and disrupt old ones, entrepreneurs can now lay hands on hundreds of millions of dollars if the idea makes sense.
Conclusion
For now, this flow of funds is a welcome booster for the economy as it recovers from the scars of the pandemic-driven lockdowns. While valuations can be volatile in the near term, we are in the early stages of this reshaping of India’s corporate landscape.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Adaptation Gap Report
Mains level: Paper 3- Climate finance
Context
In the run-up to the 26th UNFCCC media reports have claimed that developed countries are inching closer to the target of providing $100 billion annually. This view has been bolstered by the Organisation for Economic Co-operation and Development (OECD), which claimed that climate finance provided by developed countries had reached $78.9 billion in 2018.
Issue of climate financing and claim of reaching the target of $100 billion
- These claims reaching the target of $100 billion annually is erroneous.
- First, the OECD figure includes private finance and export credits.
- Public finance: Developing countries have insisted that developed country climate finance should be from public sources and should be provided as grants or as concessional loans.
- However, the OECD report makes it clear that the public finance component amounted to only $62.2 billion in 2018, with bilateral funding of about $32.7 billion and $29.2 billion through multilateral institutions.
- Nature of finance: Significantly, the final figure comes by adding loans and grants. Of the public finance component, loans comprise 74%, while grants make up only 20%.
- The report does not say how much of the total loan component of $46.3 billion is concessional.
- Non-concessional loans: From 2016 to 2018, 20% of bilateral loans, 76% of loans provided by multilateral development banks and 46% of loans provided by multilateral climate funds were non-concessional.
- Between 2013 and 2018, the share of loans has continued to rise, while the share of grants decreased.
- The OECD reports on climate finance have long been criticised for inflating climate finance figures.
- In contrast to the OECD report, Oxfam estimates that in 2017-18, out of an average of $59.5 billion of public climate finance reported by developed countries, the climate-specific net assistance ranged only between $19 and $22.5 billion per year.
- The 2018 Biennial Assessment of UNFCCC’s Standing Committee on Finance reports that on average, developed countries provided only $26 billion per year as climate-specific finance between 2011-2016.
Broken commitments from the US on climate financing
- U.S. President Joe Biden recently said that the U.S. will double its climate finance by $11.4 billion annually by 2024.
- It is Congress that will decide on the quantum after all.
- The U.S. also has a history of broken commitments, having promised $3 billion to the Green Climate Fund (GCF) under President Barack Obama, but delivering only $1 billion.
- The future focus of U.S. climate finance is the mobilisation of private sector investment.
- The bulk of the money coming in would be through private funds, directed to those projects judged “bankable” and not selected based on developing countries’ priorities and needs.
Finance skews toward mitigation
- Climate finance has also remained skewed towards mitigation, despite the repeated calls for maintaining a balance between adaptation and mitigation.
- The 2016 Adaptation Gap Report of the UN Environment Programme had noted that the annual costs of adaptation in developing countries could range from $140 to $300 billion annually by 2030 and rise to $500 billion by 2050.
- Currently available adaptation finance is significantly lower than the needs expressed in the Nationally Determined Contributions submitted by developing countries.
Conclusion
Delivering on climate finance is fundamental to trust in the multilateral process. Regrettably, while developing countries will continue to pressure developed countries to live up to their promises, the history of climate negotiations is not in their favour.
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From UPSC perspective, the following things are important :
Prelims level: Taiwan straight, South China Sea
Mains level: Taiwan as a new global flashpoint
Recently China flew over 100 fighter jets into Taiwan’s air defence identification zone setting off alarm around the world that it was preparing to take over the island by force.
Taiwan: the Republic of China (RoC)
- Taiwan, earlier known as Formosa, a tiny island off the east coast of China, is where Chinese republicans of the Kuomintang government retreated after the 1949 victory of the communists.
- It has since continued as the Republic of China (RoC).
- Although largely unrecognized by other countries as such, self-ruled Taiwan sees itself as no less than an independent nation.
- Its leaders, have vowed to defend its sovereignty against the Chinese goal of “reunification”.
Chinese claims over Taiwan
- Since its establishment in 1949, the PRC has believed that Taiwan must be reunified with the mainland, while the RoC claim to be an independent country.
- The RoC became the non-communist frontier against China during the Cold War, and was the only ‘China’ recognised at the UN until 1971.
- That was when the US inaugurated ties with China through the secret diplomacy under President Richard Nixon.
Independence politics by Taipei
- In 1975, Taiwan got its first democratic reforms. Trade ties with PRC were established.
- As the British prepared to exit Hong Kong in 1999, the “One China, Two Systems” solution was offered to Taiwan as well, but it was rejected by the Taiwanese.
- In 2004, China started drafting an anti-secession law aimed at Taiwan; trade and connectivity, however, continued to improve.
Hurdles for Taiwanese independence
- Taiwan now has massive economic interests, including investments in China, and pro-independence sections worry that this might come in the way of their goals.
- Inversely, the pro-reunification sections of the polity, as well as China, hope that economic dependence and increasing people-to-people contacts will wear out the pro-independence lobbies.
Global significance of Taiwan
- The island is located in the East China Sea, to the northeast of Hong Kong, north of the Philippines and south of South Korea, and southwest of Japan.
- What happens in and around Taiwan is of deep concern to all of East Asia.
Geopolitics: US ties with Taiwan
- Officially, the US has subscribed to PRC’s “One China Policy” which means there is only one legitimate Chinese government.
- The most serious encounter was in 1995-96, when China began testing missiles in the seas around Taiwan, triggering the biggest US mobilization in the region since the Vietnam War.
- Now, the US backs Taiwan’s independence, maintains ties with Taipei, and sells weapons to it.
- Taiwan is entirely dependent on the US for its defense against possible Chinese aggression.
- This is why every spike in military tensions between China and Taiwan injects more hostility into the already strained relationship between Washington and Beijing.
Challenge for the US
- The Biden Administration has declared “rock-solid” commitment to Taiwan after an incursion by Chinese warplanes.
- As tensions rise, the world is watching the US, which is face-saving after exiting from Afghanistan.
- In East and Southeast Asia, several countries including Japan, South Korea, and the Philippines, which are sheltered under the Protective umbrella of the US, are reading the situation.
- The US has also agreed to abide by the “Taiwan Agreement”, under which US support for the “One China Policy” is premised on Beijing not invading Taiwan.
Recent initiatives against China
- The AUKUS pact among the US, UK, and Australia, under which Australia will be supplied with nuclear submarines, has imparted a new dimension to the security dynamics of the Indo-Pacific.
- Taiwan has welcomed the pact, while China has denounced it as seriously undermining regional peace.
Implications for India
- With India facing its own problems with China at the LAC, there have been suggestions that it should review its One China Policy.
- It has in any case long stopped reiterating this officially — and use not just the Tibet card, but also develop more robust relations with Taiwan to send a message to Beijing.
- India and Taiwan currently maintain “trade and cultural exchange” offices in each other’s capitals.
India-Taiwan Ties: A backgrounder
- India and Taiwan both do not maintain any official diplomatic relations.
- India recognizes only the People’s Republic of China (in mainland China) and not Taiwan’s claims of being the legitimate government of Mainland China, Hong Kong, and Macau.
- However, India’s economic and commercial links, as well as people-to-people contacts with Taiwan, have expanded in recent years.
- Major Taiwanese exports to India include integrated circuits, machinery, and other electronic products.
India’s interest
Ans. Semiconductor economy
- Taiwan’s position as a semiconductor superpower opens the door for more intensive strategic-economic cooperation between Delhi and Taipei.
- The talks with Taipei are ongoing to bring a $7.5-billion semiconductor or chip manufacturing plant to India.
- Chips are used in a range of devices from computers to 5G smartphones, to electric cars and medical equipment.
Way forward
- Delhi must begin to deal with Taiwan as a weighty entity in its own right that offers so much to advance India’s prosperity.
- Delhi does not have to discard its “One-China policy” to recognise that Taiwan is once again becoming the lightning rod in US-China tensions.
Conclusion
- As Taiwan becomes the world’s most dangerous flashpoint, the geopolitical consequences for Asia are real.
- Although Delhi has embraced the Indo-Pacific maritime construct, it is yet to come to terms with Taiwan’s critical role in shaping the strategic future of Asia’s waters.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Kunming Declaration, CBD
Mains level: Not Much
The Kunming Declaration was adopted by over 100 countries at the first part of the ongoing virtual 15th meeting of the Conference of the Parties to the United Nations Convention on Biological Diversity.
Kunming Declaration
- It calls upon the parties to “mainstream” biodiversity protection in decision-making and recognise the importance of conservation in protecting human health.
- The theme of the declaration is Ecological Civilization: Building a Shared Future for All Life on Earth.
- By adopting this, the nations have committed themselves to support the development, adoption and implementation of an effective post-2020 implementation plan for the Cartagena Protocol on biosafety.
- Signatory nations will ensure that the post-pandemic recovery policies, programs and plans contribute to the conservation and sustainable use of biodiversity.
About Convention on Biological Diversity (CBD)
- The CBD (wef 1993) known informally as the Biodiversity Convention, is a multilateral treaty.
- The convention has three main goals:
- the conservation of biodiversity
- the sustainable use of its components
- the fair and equitable sharing of benefits arising from genetic resources
- Its objective is to develop national strategies for the conservation and sustainable use of biological diversity, and it is often seen as the key document regarding sustainable development.
- It has two supplementary agreements, the Cartagena Protocol and Nagoya Protocol.
(1) Cartagena Protocol
- It is an international treaty governing the movements of living modified organisms (LMOs) resulting from modern biotechnology from one country to another.
(2) Nagoya Protocol
- It deals with Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization (ABS).
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From UPSC perspective, the following things are important :
Prelims level: ISA, OSOWOG
Mains level: Solar Energy
The Union Minister for Power and New and Renewable Energy (MNRE) has addressed the Ministerial session of the Green Grids Initiative-One Sun One World One Grid (OSOWOG) Northwest Europe Cooperative Event.
One Sun, One World, One Grid
- The mega plan of OSOWOG calls for trans-national electricity grid supplying solar power across the globe.
- It will connect 140 countries through a common grid that will be used to transfer solar power.
- The idea was first floated by PM Modi in 2018 during the first assembly of the International Solar Alliance (ISA).
- The vision behind the OSOWOG mantra is “the Sun never sets” and is a constant at some geographical location, globally, at any given point of time.
With India at the fulcrum, the solar spectrum can easily be divided into two broad zones viz:
- Far East: It would include countries like Myanmar, Vietnam, Thailand, Lao, Cambodia and
- Far West: It would cover the Middle East and the Africa Region
Implementation phases of the plan
The plan is divided into three phases:
- Phase 1: It will connect the Indian grid with the Middle East, South Asia and South-East Asian grids to share solar and other renewable energy resources
- Phase 2: It will connect the first phase nations with the African pool of renewable sources
- Phase 3: It will be the concluding step of global interconnection
How novel is the idea?
(1) Scale of the program
- Not limited by national boundaries, it can tackle global challenges linked to energy.
- It will tackle access for underserved people and communities the world over.
- It will enable 3 billion people to access clean drinking water (via solar pumps), give 2 billion women access to clean cooking and bring light to the homes of 750 million people.
(2) Pivotal moment in India’s energy history
- Going back even further, almost a decade ago, the price of solar energy (then INR 15 a unit) had raised question marks about its commercial feasibility.
- Today OSOWOG envisions dispatching surplus electricity at near-zero cost as India produces the cheapest solar-powered electricity anywhere in the world.
(3) Sustainability
- OSOWOG directly tackles two key problems that are emerging as energy systems try to deliver both energy sustainability and access to underserved populations.
- Countries like Singapore or Bangladesh simply may not have enough empty land to generate solar energy.
- Many nations’ policies also prioritise food security (i.e., devoting land to farming) over solar energy. These countries can still benefit from the solar energy dispatched to them via OSOWOG.
(4) India extending leadership
- Having international associations is not a new trend for the energy sector which already has a strong geopolitical organisation such as OPEC.
- Several countries including China have initiated infrastructure projects in other countries, which is seen as a sign of asserting supremacy by several policy experts.
- While India is a partner nation with most trade associations, with ISA and OSOWOG, it is planning to take a leadership position.
Significance of OSOWOG
- Successful ambitious project: It is obviously a very grand and ambitious project with a looming success.
- Pathbreaking idea: It is also clear that a new energy sector paradigm is needed as we are facing a huge inflection point in electricity generation and consumption.
- Green benefits: Potential benefits include widespread scale up in energy access, abatement in carbon emissions, lower cost and improved livelihoods.
- Energy alternative: With battery and storage technology becoming cheaper, electricity consumption at source end is a more feasible idea for solar power.
Limitations of OSOWOG
- Low financial benefits: This may sound a geopolitically a clever strategy. However, it is to be seen if this makes sense, technology-wise and in terms of financial benefits.
- Cost-sharing challenge: The mechanism of cost-sharing will be challenging, given the varied priorities of participating countries depending on their socio-economic orders.
- Pace of progress: The OSOWOG will turn out to be an expensive, complex and very slow progress project.
- Geopolitical issue: Any disruption caused due to any bilateral/multilateral issues can potentially affect critical services in multiple continents and countries.
- Grid parameters: There is a difference in voltage, frequency and specifications of the grid in most regions. Maintaining grid stability with just renewable generation would be technically difficult.
Way forward
- While India has taken baby steps with ISA, a major investment drive is still missing. This is planned to be achieved through OSOWOG.
- India will need a strong coalition of international partners to realise this vision.
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Back2Basics: International Solar Alliance
- Officially announced during UN Climate Change Conference in Paris in 2015, the ISA is a partnership of solar-resource rich countries.
- Currently, there are 121 countries that have agreed to be members for ISA.
- Most of these are countries with large participation from Africa, South-east Asia and Europe.
- Pakistan and China are not a part of ISA.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: RE Country Attractiveness Index (RECAI)
Mains level: Renewable Energy in India
India has retained the third rank in the Renewable Energy Country Attractiveness Index released by consultancy firm EY.
RE Country Attractiveness Index (RECAI)
- The RECAI ranks the world’s top 40 markets on the attractiveness of their renewable energy investment and deployment opportunities.
- The rankings reflect assessments of market attractiveness and global market trends.
India’s performance
- India remained at the third position since three consecutive years.
- India’s thriving renewable energy market conditions, inclusive policy decisions, investment and technology improvements focusing on self-reliant supply chains have pushed the transition.
- RECAI highlights that corporate power purchase agreements (PPAs) are emerging as a key driver of clean energy growth.
- A new PPA Index – introduced in this edition of RECAI – focuses on the attractiveness of renewable power procurement and ranks the growth potential of a nation’s corporate PPA market.
- India is ranked sixth among the top 30 PPA markets.
Global scenario
- The US, mainland China and India continue to retain the top three rankings and Indonesia is a new entrant to the RECAI.
- The top-performing markets have held their ground in this latest issue – with no movement into or out of the top eight.
- France (fourth position, up by one) and the UK (fifth position, down by one), while Germany (sixth position, up by one) has edged back ahead of Australia (seventh position, down by one).
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From UPSC perspective, the following things are important :
Prelims level: Ethanol Blended Petrol (EBP) Programme
Mains level: Not Much
The Ministry of Road Transport and Highways (MoRTH) has notified mass emission standards for E 12 (12% Ethanol with Gasoline) and E15 (15% Ethanol 12 with gasoline) fuels.
What is the news?
- The ministry has notified test standards for vehicles compliant with ethanol-blended fuel variants E12 and E15.
- The ministry made it mandatory for all automobile manufacturers to put “clearly visible stickers” on every vehicle informing about its compatibility to the level of ethanol blend (E12, E15, E20).
- Currently, India is using E10 fuel (petrol blended with 10% ethanol).
Ethanol Blended Petrol (EBP) Programme
- Ethanol Blended Petrol (EBP) programme was launched in January, 2003 for supply of 5% ethanol blended Petrol.
- The programme sought to promote the use of alternative and environment-friendly fuels and to reduce import dependency for energy requirements.
- OMCs are advised to continue according priority of ethanol from 1) sugarcane juice/sugar/sugar syrup, 2) B-heavy molasses 3) C-heavy molasses and 4) damaged food grains/other sources.
- At present, this programme has been extended to whole of India except UTs of Andaman Nicobar and Lakshadweep islands with effect from 01st April, 2019 wherein OMCs sell petrol blended with ethanol up to 10%.
Why ethanol blending?
- Agricultural waste management: Ethanol blending will solve the problem of agricultural waste as well as sugar rates due to excess production, therefore providing security to sugarcane farmers.
- Reducing emission: It can help accomplish dual goal of strengthening energy security with low carbon emission.
- Enhanced participation: It will enable local enterprises and farmers to participate in the energy economy.
- Reducing import bill: It is another significant benefit. India imports 85% of crude oil.
- Fuel efficiency: Ethanol blending increases octane number thereby increasing fuel quality in terms of anti-knocking tendency (engine sound)
Also read:
[RSTV ARCHIVE] Ethanol Blending: Significance & Road Ahead
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From UPSC perspective, the following things are important :
Prelims level: FAO
Mains level: Paper 3- Reorienting agri-food systems
Context
There is an urgent need for reorientation of the long-term direction of agri-food systems to not only enhance farm incomes but also ensure better access to safe and nutritious foods.
Challenge of malnutrition in India
- The findings from the first round of the Fifth National Family Health Survey suggest that nutrition-related indicators have worsened in most States.
- In addition, findings from the Comprehensive National Nutrition Survey (2016-18) have highlighted the role of micro-nutrient malnutrition.
- Pathways for nutritional security consist of improving dietary diversity, kitchen gardens, reducing post-harvest losses, making safety net programmes more nutrition-sensitive, women’s empowerment, enforcement of standards and regulations, improving Water, Sanitation and Hygiene, nutrition education, and effective use of digital technology.
Agri-food system: Significance and challenges it faces
- The agri-food systems are the most important part of the Indian economy.
- India produces sufficient food, feed and fibre to sustain about 18% of the world’s population (as of 2020). Agriculture contributes about 16.5% to India’s GDP and employs 42.3% of the workforce (2019-20).
- A sustainable agri-food system is one in which a variety of sufficient, nutritious and safe foods are made available at an affordable price to everyone, and nobody goes hungry or suffers from any form of malnutrition.
- However, the country’s agri-food systems are facing new and unprecedented challenges, especially related to economic and ecological sustainability, nutrition and the adoption of new agricultural technologies.
- The edifice of India’s biosecurity remains vulnerable to disasters and extreme events.
Way forward: Reorienting agri-food systems
- There is an urgent need for reorientation of the long-term direction of agri-food systems to not only enhance farm incomes but also ensure better access to safe and nutritious foods.
- Additionally, the agri-food systems need to be reoriented to minimise cost on the environment and the climate.
- This need is recognised by the theme of World Food Day 2021: ‘Our actions are our future. Better production, better nutrition, a better environment and a better life’.
- FAO’s support for the transformation of agri-food systems is rooted in agro-ecology.
- The more diverse an agricultural system, the greater its ability to adapt to shocks.
- Different combinations of integrated crop-livestock-forestry-fishery systems can help farmers produce a variety of products in the same area, at the same time or in rotation.
- In January this year, FAO in collaboration with NITI Aayog and the Ministry of Agriculture convened a National Dialogue to evolve a framework for the transition to a more sustainable agri-food systems by 2030 and identify pathways for enhancing farmers’ income and achieving nutritional security.
Consider the question “What are the challenges facing agri-food systems in India? Suggest the pathways to transform the agri-food system to enhance farm income and ensure food and nutrition security.”
Conclusion
Food systems can help combat environmental degradation or climate change. Sustainable agri-food systems can deliver food security and nutrition for all, without compromising the economic, social and environmental bases.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Issues with free power
Context
With elections around the corner in many States, political parties are competing with one another in promising free power.
Problems with free power
- Supported by state subsidy, electricity tariff to agriculture is low in most States – often less than ₹1/unit – and is free in some States such as Punjab, Tamil Nadu and Karnataka.
- There is inefficient use of electricity and water, neglect of service quality by the distribution companies leading to frequent outages and motor burn outs, and high subsidy burden on the State governments.
- Inflated consumption estimates: Since nearly three-fourth of the agriculture connections in the country are unmetered, consumption estimates are often inflated by distribution companies to increase subsidy demand and project low distribution losses.
- Any metering effort faces resistance as it is perceived as the first step towards levying charges.
- Opting-out schemes are being made but do not seem to have uptake.
- Difficulty in implementing DBT: Free power provision along with issues of metering make implementation of Direct Benefit Transfer difficult.
- All this leaves farmers, distribution companies and State governments frustrated.
- Subsidy burden on Governments: Due to free power in Delhi, the total state subsidy amounts to 11% of the total expenses.
- In Tamil Nadu, where free power is available to households, half of the total subsidy is earmarked for this.
- If there is further increase in number and consumption limits of free power, the subsidy burden on State governments will substantially increase.
- Low adoption of solar power: Roof-top solar and energy efficiency are good environment-friendly options for homes but providing free power to well-off households will discourage them from taking these up.
Way forward
- Free or low-tariff power is at best a short-term relief, which should be provided to those who desperately need it.
- Give fixed rebate: A fixed rebate of up to ₹200/month for residential consumers can be provided in the electricity bill.
- As the rebate is delinked from consumption, distribution companies won’t have an incentive to inflate consumption.
- Rebate for adopting energy-efficient appliances: There can be additional rebates for adopting energy-efficient appliances like refrigerators, combined with State-level bulk procurement programmes to reduce the cost.
- Addressing mutual mistrust: The atmosphere of mutual mistrust between small consumers and distribution companies has to change.
- There should be quick resolution of arrears and one-time offers for settlements.
Conclusion
There is a need to question the wisdom of broad-brush promises such as free power, which cannot be sustained in the long run.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CAATSA
Mains level: Paper 2- Implications of CAATSA on India-US ties
Context
The delivery of the S-400 Triumf air defence systems from Russia is expected according to schedule. In response, U.S. Deputy Secretary of State Wendy Sherman hoped that both the U.S. and India could resolve the issue.
Background of the CAATSA
- The Countering America’s Adversaries through Sanctions Act (CAATSA) was passed when the U.S. sought to discourage trade in the defence and intelligence sectors of Russia.
- The Act mandates the President to impose at least five of the 12 sanctions on persons engaged in a “significant transaction” with Russian defence and intelligence sectors.
- These sanctions include suspending export licence, banning American equity/debt investments in entities, prohibiting loans from U.S. financial institutions and opposing loans from international finance institutions.
- The Act also built in a safety valve in the form of a presidential waiver.
- The “modified waiver authority” allows the President to waive sanctions in certain circumstances.
- There are a few more provisions including one that allows for sanctions waivers for 180 days, provided the administration certifies that the country in question is scaling back its ties with Russia.
Implications of CAATSA sanctions against India and scope for waiver
- Impact on bilateral relationship: Sanctions have the tremendous potential of pulling down the upward trajectory of the bilateral relationship between the U.S. and India, which now spans 50 sectors, especially in the field of defence.
- India turned sullen over the manner in which the U.S. negotiated the exit deal with the Taliban.
- Quad engagement: Yet, on the strategic plane, India remained on course by agreeing to the upgrading of the Quadrilateral Security Dialogue and sharing the same vision as the U.S. on the Indo-Pacific construct.
- The U.S.’s apprehension is that bringing India under a sanctions regime could push New Delhi towards its traditional military hardware supplier, Russia.
- The U.S. Sanctions can stir up the latent belief in India that Washington cannot be relied upon as a partner.
- While the administration will have to do the heavy lifting, the role of Indian-Americans should be significant just as they rallied around to support the Civil Nuclear Deal in the face of stiff resistance from Democrats opposed to nuclear proliferation.
- Decrease in imports from Russia: India’s import of arms decreased by 33% between 2011-15 and 2016-20 and Russia was the most affected supplier, according to a report by the Stockholm-based defence think-tank SIPRI.
- In recent years, though, there have been some big deals worth $15 billion including S400, Ka-226-T utility helicopters, BrahMos missiles and production of AK-203 assault rifles.
- Increase in defence import from US: On the other hand, over the past decade, government-to-government deals with the U.S. touched $20 billion and deals worth nearly $10 billion are under negotiation.
Conclusion
The CAATSA test will determine the course of the India-U.S. strategic partnership. Whether the Biden administration sail through opposition within his party remains to be seen.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: UDAY scheme
Mains level: Paper 3- Scheme for discoms
Context
In its budget 2021-22, the Union government had announced the launch of a “reforms-based and results-linked” scheme for the distribution sector.
Precarious financial condition of discoms
- Their overall debt burden, despite the implementation of the UDAY scheme, is estimated to increase to around Rs 6 lakh crore in the ongoing financial year.
- Moreover, their annual cash losses are estimated to be about Rs 45,000-50,000 crore (excluding UDAY grants and regulatory income).
- Due to highly subsidised nature of power tariffs towards agriculture and certain sections of residential consumers, the overall subsidy dependence is likely to be roughly Rs 1.30 lakh crore this year at the all-India level.
Revamped Distribution Sector Scheme
- In its budget 2021-22, the Union government had announced the launch of a “reforms-based and results-linked” scheme for the distribution sector.
- Subsequently, the Revamped Distribution Sector Scheme was notified in July with an overall outlay of Rs 3.03 lakh crore.
- Under the scheme, AT&C losses are sought to be brought down to 12-15 per cent by 2025-26, from 21-22 per cent currently.
- Operational efficiencies of discoms are to be improved through smart metering and upgradation of the distribution infrastructure, including the segregation of agriculture feeders and strengthening the system.
- The scheme has two parts — Part A with an outlay of Rs 3.02 lakh crore, pertains to the upgradation of the distribution infrastructure and metering related works.
- Part B, with an outlay of Rs 1,430 crore, is for training and capacity building, besides other enabling and support activities.
- Discoms and their state governments will have to sign a tripartite agreement with the central government in order to avail benefits under the scheme.
- Only those discoms that meet all the pre-qualifying criteria will be eligible for the release of funds.
- A loss-making discom will not be eligible unless it draws up plans to reduce its losses, approved by the state government and filed with the central government.
- As far as the agricultural sector is concerned, the use of solar power projects to supply electricity to these consumers through the agriculture feeder route is likely to result in savings.
- This is because of a combination of high tariff competitiveness offered by solar power, lower technical losses due to proximity to load centres, and the ability to meet demand during the day when sunlight is available.
- In addition, the delicencing initiative proposed by the central government can effect significant changes in the distribution segment, facilitating competition and placing emphasis on the quality and reliability of power supply and consumer services.
Issue of tariff determination
- A continuing area of concern affecting discom finances is the significant delay in the process of tariff determination in many states.
- As of now, only 19 out of 28 states have issued tariff orders for 2021-22, indicating sluggish progress.
- Further, there is upward pressure on the cost of power supply for distribution utilities, considering the dominant share (around 70 per cent) of coal in the fuel mix for energy generation, the strengthening of imported coal prices and the possibility of domestic coal price revisions by Coal India.
- As a consequence, a cost-reflective tariff determination process, coupled with the timely pass-through of power purchase costs, remains critical for the utilities.
Consider the question “Examine the factor that explains the continuing financial woes of state-owned discoms despite implementing several schemes. How Revamped Distribution Sector Scheme seeks to address the issue?”
Conclusion
On the whole, while the focus on improving the operational efficiency, and ensuring the financial sustainability of discoms is indeed welcome, timely implementation of the reforms is critical to achieving the milestones.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Extended Producer Responsibility (EPR)
Mains level: Need for plastic waste management
The Environment Ministry has issued draft rules that mandate producers of plastic packaging material to collect all of their produce by 2024 and ensure that a minimum percentage of it be recycled as well as used in subsequent supply.
What is EPR?
- Extended Producer Responsibility (EPR) means the responsibility of a producer for the environmentally sound management of the product (plastic packaging) until the end of its life.
- India had first introduced EPR in 2011 under the Plastic Waste (Management and Handling) Rules, 2011 and E-Waste Management and Handling Rules, 2011.
What are the new EPR rules for Plastic Waste?
(A) Plastic packaging
- The new EPR guidelines covers three categories of plastic packaging including:
- Rigid plastic
- Flexible plastic packaging of single layer or multilayer (more than one layer with different types of plastic), plastic sheets and covers made of plastic sheet, carry bags (including carry bags made of compostable plastics), plastic sachet or pouches
- Multi-layered plastic packaging which has at least one layer of plastic and at least one layer of material other than plastic.
- It has also specified a system whereby makers and users of plastic packaging can collect certificates — called Extended Producer Responsibility (EPR) certificates — and trade in them.
(B) Ineligible plastics for EPR
- Only a fraction of plastic that cannot be recycled will be eligible to be sent for end-of-life disposal such as road construction, waste to energy, waste to oil and cement kilns.
- Only methods prescribed by the Central Pollution Control Board will be permitted for their disposal.
Targets for recycling
- In 2024, a minimum 50% of their rigid plastic (category 1) will have to be recycled as will 30% of their category 2 and 3 plastic.
- Every year will see progressively higher targets and after 2026-27, 80% of their category 1 and 60% of the other two categories will need to be recycled.
- If entities cannot fulfil their obligations, they will on a “case by case basis” be permitted to buy certificates making up for their shortfall.
Effects on non-compliance
- Non-compliance, however, will not invite a traditional fine.
- Instead, an “environmental compensation” will be levied, though the rules do not specify how much this compensation will be.
Challenges in mandatory EPR
There are several challenges faced by both producers and bulk consumers that hinder proactive participation.
- Consumer awareness: Waste segregation has been the greatest challenge in India owing to lack of consumer awareness.
- Lack of compliance: The plastic producers do not wish to engage in the process holistically and take the effort to build awareness.
- Large scale involvement: The EPR doesn’t take into account the formalization of informal waste pickers, aggregators and dismantlers.
- Lack of recycle infrastructure: These challenges range from lack of handling capacity to illegitimate facilities in the forms of multiple accounting of waste, selling to aggregators and leakages.
Way forward
- Tracking mechanism: What India needs is to develop tracking mechanisms and provide oversight of waste compliance, in order to ensure that the mechanism of waste disposal is streamlined.
- Strict enforcement: While enforcement strictness is of paramount importance, it is also vital to build an incentive structure around this to ensure better complicity by the producers.
- Innovation: The time is ripe for innovators to come up with an alternative for plastics and the strong will of the Government to rid the toxic waste in a sustainable and safe manner.
Try answering this PYQ:
Q.In India, ‘extended producer responsibility’ was introduced as an important feature in which of the following?
(a) The Bio-medical Waste (Management and Handling) Rules, 1998
(b) The Recycled Plastic (Manufacturing and Usage) Rules, 1999
(c) The e-Waste (Management and Handling) Rules, 2011
(d) The Food Safety and Standard Regulations, 2011
Post your answers here.
Also read:
[Burning Issue] Ban on Single Use Plastics
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Forest (Conservation) Act, 1980
Mains level: Issues with forest land diversion
The Ministry for Environment, Forests and Climate Change (MoEFCC) has published proposed amendments to the Forest Conservation Act, 1980.
The Forest (Conservation) Act, 1980
The FCA is the principal legislation that regulates deforestation in the country.
- It prohibits the felling of forests for any “non-forestry” use without prior clearance by the central government.
- The clearance process includes seeking consent from local forest rights-holders and from wildlife authorities.
- The Centre is empowered to reject such requests or allow it with legally binding conditions.
- In a landmark decision in 1996, the Supreme Court had expanded the coverage of FCA to all areas that satisfied the dictionary definition of a forest; earlier, only lands specifically notified as forests were protected by the enforcement of the FCA.
The FCA is brief legislation with only five sections of which-
- Section 1 defines the extent of coverage of the law,
- Section 2 restrictions of activities in forest areas and the rest deals with the creation of advisory committees, powers of rule-making and penalties.
Why is the Act being amended now?
- The current definition of forests has locked land across the country; even private owners cannot utilise their own property for non-forestry purposes.
- The pressure for forest land diversion has been coming from — Ministries such as Rail and Roads.
- Under the Act, any diversion of any forest land for any purpose, including assignment of leases, needs prior approval of the Centre.
What defines ‘Forest’ under this act?
- Previously, the Act had applied largely to reserve forests and national parks.
- In 1996, ruling in T N Godavarman Thirumulpad v Union of India Case, the Supreme Court had expanded the definition and scope of forest land.
- It would thus include all areas recorded as forest in any government record, irrespective of ownership, recognition and classification.
- The court also expanded the definition of forests to encompass the “dictionary meaning of forests”.
- This would mean that a forested patch would automatically become a “deemed forest” even if it is not notified as protected, and irrespective of ownership.
- The Act would also be applicable over plantations in non-forest land.
What are the proposed amendments?
(A) Exemptions for Road and Railways
- The MoEFCC has proposed that all land acquired by the Railways and Roads Ministries prior to 1980 be exempted from the Act.
- Once the lands had been acquired for expansion, but subsequently, forests have grown in these areas, and the government is no longer able to use the land for expansion.
- The Ministries will no longer need clearance for their projects, nor pay compensatory levies to build there.
(B) Relaxation
- It distinguishes individuals whose lands fall within a state-specific Private Forests Act or comes within the dictionary meaning of forest as specified in the 1996 Supreme Court order.
- The government proposes to allow the “construction of structures for bona fide purposes’’ including residential units up to 250 sq m as a one-time relaxation.
(C) Defense and other projects
- Defence projects near international borders will be exempted from forest clearance.
- Oil and natural gas extraction from forested lands will be permitted, but only if technologies such as Extended Reach Drilling are used.
- Strip plantations alongside roads that would fall under the Act will be exempted.
What are the concerns?
- Legalizing private ownership of forests: The rules will facilitate corporate ownership.
- Deforestation: The exemption of forests on private land will lead to the disappearance of large tracts of forests.
- Fragmentation: Exemption for private residences on private forest will lead to fragmentation of forests, and open areas such as the Aravalli mountains to real estate.
- Tribal concerns: The amendments do not address what will happen to tribals and forest-dwelling communities over the cleared lands.
- Threat to wildlife: Exemption for roads and railways on forest land acquired prior to 1980 will be detrimental to forests as well as wildlife – especially elephants, tigers and leopards.
Positives with the amendment
- It has proposed making forest laws more stringent for notified forests, making offences non-bailable with increased penalties including imprisonment of up to one year.
- It has disallowed any kind of diversion in certain forests.
- It has attempt to define and identify forests once and for all — something that has been often ambiguous.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: James Webb Space Telescope
Mains level: Dark Ages of the Univers
On Dec 18, 2021, after years of delays, the James Webb Space Telescope is scheduled to launch into orbit and usher in the next era of astronomy.
James Webb Space Telescope
- JWST is a joint NASA–ESA–CSA space telescope that is planned to succeed the Hubble Space Telescope as NASA’s flagship astrophysics mission
- It is the most powerful space telescope ever built.
- It will enable a broad range of investigations across the fields of astronomy and cosmology, including observing some of the most distant events and objects in the universe,
- It would help understand events such as the formation of the first galaxies, and detailed atmospheric characterization of potentially habitable exoplanets.
Its significance
- Some have called JSWT the “telescope that ate astronomy.”
- It is said to look back in time to the Dark Ages of the universe.
What does the ‘Dark Ages’ of the universe mean?
- Evidence shows that the universe started with an event called the Big Bang 13.8 billion years ago, which left it in an ultra-hot, ultra-dense state.
- The universe immediately began expanding and cooling after the Big Bang.
- One second after the Big Bang, the universe was a hundred trillion miles across with an average temperature of an incredible 18 billion F (10 billion C).
- Around 400,000 years after the Big Bang, the universe was 10 million light-years across and the temperature had cooled to 5,500 F (3,000 C).
- Throughout this time, space was filled with a smooth soup of high-energy particles, radiation, hydrogen and helium.
- There was no structure. As the expanding universe became bigger and colder, the soup thinned out and everything faded to black.
This was the start of what astronomers call the Dark Ages of the universe.
How will JWST study this?
Ans. Looking for the first light
- The Dark Ages ended when gravity formed the first stars and galaxies that eventually began to emit the first light.
- Astronomers aim to study this fascinating and important era of the universe, but detecting first light is incredibly challenging.
- Compared to massive, bright galaxies of today, the first objects were very small and due to the constant expansion of the universe, they’re now tens of billions of light years away from Earth.
- Also, the earliest stars were surrounded by gas left over from their formation and this gas acted like fog that absorbed most of the light.
- It took several hundred million years for radiation to blast away the fog. This early light is very faint by the time it gets to Earth.
Try this PYQ:
Consider the following phenomena:
- Light is affected by gravity.
- The Universe is constantly expanding.
- Matter warps its surrounding space-time.
Which of the above is/are the predictions of Albert Einstein’s General Theory of Relativity, often discussed in media?
(a) 1 and 2 only
(b) 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: NPK fertilizers, Soil Health Card
Mains level: Nutrient Based Subsidy (NBS) Scheme
The Cabinet Committee on Economic Affairs has approved the proposal of the Department of Fertilizers for fixation of Nutrient Based Subsidy Rates for P&K Fertilizers for the year last quarter of the year 2021-22.
An aspirant from rural agrarian background is quite habitual to hear about NPK 10-26-26, 20-20-0-13 & 12-32-16. They often get to find the plastic gunny bags mentioning this!
Nutrient Based Subsidy (NBS)
- The NBS Scheme for fertilizer was initiated in the year 2010 and is being implemented by the Department of Fertilizers.
- Under the scheme, a fixed amount of subsidy decided on an annual basis is provided on each grade of subsidized P&K fertilizers, except for Urea based on the nutrient content present in them.
- It is largely for secondary nutrients like N, P, S and K and micronutrients which are very important for crop growth and development.
- In India, urea is the only controlled fertilizer and is sold at a statutory notified uniform sale price.
What is NPK?
- So now that you know what the numbers on fertilizer mean, you need to know why NPK is important to your plants.
- All plants need nitrogen, phosphorus, and potassium to grow. Without enough of any one of these nutrients, a plant will fail.
- Nitrogen (N): It is largely responsible for the growth of leaves on the plant.
- Phosphorus (P): It is largely responsible for root growth and flower and fruit development.
- Potassium (K): It is a nutrient that helps the overall functions of the plant perform correctly.
- Knowing the NPK values of fertilizer can help you select one that is appropriate for the type of plant you are growing.
What NBS provides?
- Fixing MRP of NPK fertilizers: The scheme allows the manufacturers, marketers, and importers to fix the MRP of the Phosphatic and Potash fertilizers at reasonable levels.
- Maintaining stock level: The MRP will be decided considering the domestic and international prices of P&K fertilizers, inventory level in the country and the exchange rates.
- Inflation control: The NBS ensures that an adequate quantity of P&K is made available to the farmers at a statutory controlled price.
Issues with NBS
- Leaves urea: Urea which the most widely used, is left-out in the scheme and hence it remains under price control as NBS has been implemented only in other fertilizers.
- Cost on exchequer: Fertilizer subsidy is the second-biggest subsidy after food subsidy.
- Costs on Economy and Environment: The NBS policy is not only damaging the fiscal health of the economy but also proving detrimental to the soil health of the country.
- Black marketing: Subsidised fertilizers is getting diverted to bulk buyers/traders or even non-agricultural users such as plywood and animal feed makers.
Back2Basics: Soil Health Card (SHC)
- Soil Health Card (SHC) scheme is promoted by the Department of Agriculture & Co-operation under the Ministry of Agriculture and Farmers’ Welfare.
- An SHC is meant to give each farmer soil nutrient status of his/her holding and advice him/her on the dosage of fertilizers and also the needed soil amendments, that s/he should apply to maintain soil health in the long run.
- SHC is a printed report that a farmer will be handed over for each of his holdings.
- It will be made available once in a cycle of 2 years, which will indicate the status of soil health of a farmer’s holding for that particular period.
- The SHC given in the next cycle of 2 years will be able to record the changes in the soil health for that subsequent period.
Parameters of SHC:
- N, P, K (Macro-nutrients)
- Sulfur (S) (Secondary- nutrient)
- Zn, Fe, Cu, Mn, Bo (Micronutrients)
- pH, EC (Electrical conductivity) , OC (Organic content)
Try this PYQ:
The nation-wide ‘Soil Health Card Scheme’ aims at:
- expanding the cultivable area under irrigation.
- enabling the banks to assess the quantum of loans to be granted to farmers on the basis of soil quality.
- checking the overuse of fertilizers in farmlands.
Which of the above statements is/are correct?
(a) 1 and 2 only
(b) 3 only
(c) 2 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: Taper tantrum
Mains level: Paper 3- MPC decision on interest rates
Context
The Monetary Policy Committee of the RBI kept the benchmark policy rates unchanged, and retained the accommodative stance in its October review.
Factors playing part in monetary policy decisions
- It’s important to remember that monetary policy these days is influenced by both local macroeconomic developments and the global monetary policy direction, with the former playing a dominant role.
- Locally, after the second wave of the pandemic, a variety of indicators such as the Purchasing Managers Index (manufacturing and services), mobility indicators, government tax collections, exports and imports are pointing at an improvement in economic activity.
- Then there is the good news on the monsoon front. With a late pick-up in rains, the cumulative deficiency in this monsoon season has come down to just 1 per cent of the long-period average (LPA).
- Since the MPC’s August 2021 policy review, Covid-19 cases have trended down and there has been admirable progress on the vaccination front.
- Also, despite high year-on-year growth numbers, the level of economic activity this fiscal will only be 1.5 per cent above 2019-2020.
Trends emerging from the economic recovery
- Role of government: Capital expenditure of both the Centre and states is on track to meet the budgetary commitment, supported by healthy tax collections.
- Large companies on recovery path: Large companies in industrial sectors such as steel, cement, non-ferrous metals are operating at healthy utilisation levels, and have deleveraged their balance sheets.
- Policy support for smaller companies: The going is not so good for the smaller ones.
- Clearly, smaller companies need policy support. The extension of the Emergency Credit Line Guarantee Scheme is a recognition of that.
- Private consumption is not broad-based either.
- Even in goods consumption, which is faring better than services, the nature of demand seems skewed towards relatively higher-value items such as cars and utility vehicles.
- This probably reflects the income dichotomy spawned by the pandemic.
- Inflation: Its fall to 5.3 per cent in August offers only limited comfort for two reasons.
- One, core and fuel inflation, which have 54 per cent weightage in CPI, remain stubbornly high.
- Second, food prices have nudged down overall inflation.
- Domestic growth-inflation dynamics suggest that the RBI has little option but to remain more tolerant of persistent price pressures, and hope that these will eventually prove transitory because they have been primarily driven by supply shocks caused by the pandemic.
Global monetary policy environment
- Globally, the monetary policy environment is veering towards normalisation/tapering/interest-rate rise largely due to an upward surprise in inflation, or because some central banks feel the objectives of quantitative easing have been met.
- Central banks in advanced economies such as Norway, Korea and New Zealand have recently raised rates.
- The two systemically important central banks — the US Federal Reserve (Fed) and the European Central Bank (ECB) — view the current spike in inflation as fleeting and have communicated greater tolerance for it for a longer period.
Conclusion
The process of mopping up excess liquidity will slowly gain pace over the next few months, followed by a policy rate hike sometime around early 2022. By then, there should be enough clarity on the third wave and the stance of the Fed and the ECB.
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