Foreign Policy Watch: India-Bangladesh

[pib] New ports and routes added under the Protocol on Inland Water Transit between India and Bangladesh

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Protocol on Inland Water Transit

Mains level: India's north-east connectivity through Bangladesh

India and Bangladesh have opened a new chapter in regional connectivity by expanding the scope of inland water transport mechanism that would enable to boost trade in the region.

Note all the ports mentioned in the newscard and the image. Also, keep a tab on river systems of North east India.

What is the news?

  • The Standing Committee on the Protocol and the Shipping Secretary level Talks are the institutional arrangements to discuss and make the Protocol more effective.
  • During the latest discussions key decisions were taken on the extension of protocol routes, the inclusion of new routes and declaration of new Ports of Call to facilitate trade between the two countries.

New routes

The number of Indo Bangladesh Protocol (IBP) routes is being increased from 8 to 10 and new locations are also added to the existing routes: –

1) Inclusion of Sonamura- Daudkhandi stretch of Gumti river (93 Km) as IBP route:

  • It will improve the connectivity of Tripura and adjoining States with Indian and Bangladesh`s economic centres and will help the hinterland of both the countries.

2) Rajshahi-Dhulian-Rajshahi Routes and its extension up to Aricha (270 km)

  • It will help the augmentation of infrastructure in Bangladesh as it would reduce the transportation cost of stone chips/aggregate to northern part of Bangladesh through this route. It will also decongest the Land Custom Stations on both sides.

Ports of Call

  • Port of call means an intermediate stop for a ship on its scheduled journey for cargo operation or taking on supplies or fuel.
  • The following are existing Ports of Call in the two countries on Indo-Bangladesh Protocol (IBP) route:
India Kolkata Haldia Pandu Karimganj Silghat Dhubri
Bangladesh Narayanganj Khulna Mongla Sirajganj Ashuganj Pangaon
  • Newly added: Two more extended Ports of Call have been added
  • Inclusion of Jogigopha in India and Bahadurabad in Bangladesh as new Port of Call will provide connectivity to Meghalaya, Assam and Bhutan.

About the Protocol on Inland Water Transit

  • Bangladesh and India have a long-standing and time-tested Protocol on Transit and Trade through inland waterways of both countries.
  • This Protocol, which was first signed in 1972 (immediately after independence of Bangladesh), is a reflection of shared history and friendship between the two countries.
  • It was last renewed in 2015 for five years with a provision for its automatic renewal for a further period of five years giving long term assurance to various stakeholders.

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Food Processing Industry: Issues and Developments

[pib] Scheme for formalization of Micro Food Processing Enterprises (FME)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Scheme for formalization of Micro Food Processing Enterprises (FME)

Mains level: Food processing industry and the required reforms

The Union Cabinet has given its approval to a new Centrally Sponsored Scheme – “Scheme for Formalization of Micro food processing Enterprises (FME)” for the Unorganized Sector on All India basis.

Practice question for mains:

Q. Discuss the scope and significance of Food Processing Industries in India.  Also discuss how can it benefit India becoming the global food store.

Background

  • There are about 25 lakh unregistered food processing enterprises which constitute 98% of the sector and are unorganized and informal.
  •  Nearly 66 % of these units are located in rural areas and about 80% of them are family-based enterprises.
  • This sector faces a number of challenges including the inability to access credit, high cost of institutional credit, lack of access to modern technology, inability to integrate with the food supply chain and compliance with the health & safety standards.
  • Strengthening this segment will lead to a reduction in wastage, creation of off-farm job opportunities and aid in achieving the overarching Government objective of doubling farmers’ income.

Details of the Scheme for FME

  • The Union Cabinet has sanctioned an outlay of Rs.10,000 crore.
  • The expenditure will be shared by GOI and the States in the ratio of 60:40.

Salient features

  • It will be a Centrally Sponsored Scheme. Expenditure to be shared by the Government of India and States at 60:40.
  • 2, 00,000 micro-enterprises are to be assisted with credit linked subsidy.
  • The scheme will be implemented over a 5 year period from 2020-21 to 2024-25.
  • Cluster approach.
  • Focus on perishables.

Support for Individual micro-units:

  • Micro enterprises will get credit-linked subsidy @ 35% of the eligible project cost with a ceiling of Rs.10 lakh.
  • The beneficiary contribution will be a minimum of 10% and balance from the loan.
  • On-site skill training & Handholding for DPR and technical upgradation.

Implementation strategy

  • The scheme will be rolled out on All India basis.
  • Seed capital will be given to SHGs (@Rs. 4 lakh per SHG) for the loan to members for working capital and small tools.
  • Grant will be provided to FPOs for backward/forward linkages, common infrastructure, packaging, marketing & branding.

Administrative and Implementation Mechanisms

  • The Scheme would be monitored at Centre by an Inter-Ministerial Empowered Committee (IMEC) under the Chairmanship of Minister, FPI.
  • A State/ UT Level Committee (SLC) chaired by the Chief Secretary will monitor and sanction/ recommend proposals for expansion of micro-units and setting up of new units by the SHGs/ FPOs/ Cooperatives.
  • The States/ UTs will prepare Annual Action Plans covering various activities for implementation of the scheme, which will be approved by the Government of India.
  • A third-party evaluation and mid-term review mechanism would be built in the programme.
  • The State/ UT Government will notify a Nodal Department and Agency for implementation of the Scheme.

Establishment of a National Portal & MIS

  • A National level portal would be set-up wherein the applicants/ individual enterprise could apply to participate in the Scheme.
  • All the scheme activities would be undertaken on the National portal.

Benefits of the Scheme

  • Nearly eight lakh micro-enterprises will benefit through access to information, better exposure and formalization.
  • Credit linked subsidy support and hand-holding will be extended to 2,00,000 micro-enterprises for expansion and upgradation.
  • It will enable them to formalize, grow and become competitive.
  • The project is likely to generate nine lakh skilled and semi-skilled jobs.
  • The scheme envisages increased access to credit by existing micro food processing entrepreneurs, women entrepreneurs and entrepreneurs in the Aspirational Districts.
  • Better integration with organized markets.
  • Increased access to common services like sorting, grading, processing, packaging, storage etc.

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Microfinance Story of India

[pib] Emergency Credit Line Guarantee Scheme (ECLGS)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Emergency Credit Line Guarantee Scheme (ECLGS)

Mains level: Reviving MSME Sector of India

The Union Cabinet has given its approval for the Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs and MUDRA borrowers.

Practice question for Mains :

Q. Discuss how the nationwide lockdown to control the coronavirus outbreak has led to the resurfacing of inherent bottlenecks in India’s MSME Sector.

About ECLGS

  • Under the Scheme, 100% guarantee coverage to be provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs. 3 lakh crore to eligible MSMEs and interested MUDRA borrowers.
  • The credit will be provided in the form of a Guaranteed Emergency Credit Line (GECL) facility.
  • The Scheme would be applicable to all loans sanctioned under GECL Facility during the period from the date of announcement of the Scheme to 31.10.2020.

Aims and objectives

  • The Scheme aims at mitigating the economic distress faced by MSMEs by providing them additional funding in the form of a fully guaranteed emergency credit line.
  • The main objective is to provide an incentive to Member Lending Institutions (MLIs), i.e., Banks, Financial Institutions (FIs) and NBFCs to increase access to, and enable the availability of additional funding facility to MSME borrowers.
  • It aims to provide a 100 per cent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers.

Salient features

  • The entire funding provided under GECL shall be provided with a 100% credit guarantee by NCGTC to MLIs under ECLGS.
  • Tenor of the loan under Scheme shall be four years with a moratorium period of one year on the principal amount.
  • No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme.
  • Interest rates under the Scheme shall be capped at 9.25% for banks and FIs, and at 14% for NBFCs.

Benefits of the scheme

  • The scheme aims to mitigate the distress caused by COVID-19 and the consequent lockdown, which has severely impacted manufacturing and other activities in the MSME sector.
  • The scheme is expected to provide credit to the sector at a low cost, thereby enabling MSMEs to meet their operational liabilities and restart their businesses.
  • By supporting MSMEs to continue functioning during the current unprecedented situation, the Scheme is also expected to have a positive impact on the economy and support its revival.

Must read

[Burning Issues] Fiscal Push for MSME Sector of India (Part I)

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Animal Husbandry, Dairy & Fisheries Sector – Pashudhan Sanjivani, E- Pashudhan Haat, etc

[pib] Pradhan Mantri Matsya Sampada Yojana (PM-MSY) for boosting fisheries sector

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Pradhan Mantri Matsya Sampada Yojana

Mains level: Fisheries sector of India

The Union Cabinet has approved the “Pradhan Mantri Matsya Sampada Yojana”.

Practice question for Mains:

Q. Only after the Indian Independence, has fisheries together with agriculture been recognized as an important sector. Examine the scope & challenges of aquaculture in India.

About the PMMSY

  • The PMMSY aims to bring about the Blue Revolution through sustainable and responsible development of the fisheries sector in India.
  • With the scheme, highest ever investment of Rs. 20050 crores are being made in the fisheries sector.
  • It will be implemented over a period of 5 years from FY 2020-21 to FY 2024-25 in all States/Union Territories.

Aims and objectives of PMMSY

  • Harnessing of fisheries potential in a sustainable, responsible, inclusive and equitable manner
  • Enhancing of fish production and productivity through expansion, intensification, diversification and productive utilization of land and water
  • Modernizing and strengthening of the value chain – post-harvest management and quality improvement
  • Doubling fishers and fish farmers incomes and generation of employment
  • Enhancing contribution to Agriculture GVA and exports
  • Social, physical and economic security for fishers and fish farmers
  • Robust fisheries management and regulatory framework

Implementation strategy

The PMMSY will be implemented as an umbrella scheme with two separate components namely:

(a) Central Sector Scheme and

(b) Centrally Sponsored Scheme

  • Majority of the activities under the Scheme would be implemented with the active participation of States/UTs.
  • A well-structured implementation framework would be established for the effective planning and implementation of PMMSY.
  • For optimal outcomes, ‘Cluster or area-based approach’ would be followed with requisite forward and backward linkages and end to end solutions.

Back2Basics: Fisheries sector of India

  • Fisheries and aquaculture are an important source of food, nutrition, employment and income in India.
  • The sector provides livelihood to more than 20 million fishers and fish farmers at the primary level and twice the number along the value chain.
  • The Gross Value Added (GVA) of the fisheries sector in the national economy during 2018-19 stood at 1.24% of the total National GVA and 7.28% share of Agricultural GVA.
  • The sector has immense potential to double the fishers and fish farmers’ incomes as envisioned by government and usher in economic prosperity.
  • Fisheries sector in India has shown impressive growth with an average annual growth rate of 10.88% during the year from 2014-15 to 2018-19.

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Swachh Bharat Mission

[pib] Star Ratings of Garbage Free Cities

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Star Ratings of Garbage Free Cities

Mains level: Success of SBM

The Ministry of Housing and Urban Affairs (MoHUA) has released the Star rating of garbage-free cities for the assessment year 2019-2020.

Practice question for mains:

Q. Discuss how the Swachh Bharat Mission has become a people’s movement in India. Also, discuss how it has managed to instill a behavioural change amongst the citizens.

About Star Rating Protocol

  • The Star Rating Protocol was launched by the MoHUA in January 2018 to institutionalize a mechanism for cities to achieve Garbage Free status and to motivate cities to achieve higher degrees of cleanliness.
  • The protocol has been devised in a holistic manner including components such as the cleanliness of drains & water bodies, plastic waste management, managing construction & demolition waste, etc.
  • While the key thrust of this protocol is on Solid waste management(SWM), it also takes care of ensuring certain minimum standards of sanitation through a set of prerequisites defined in the framework.
  • The new protocol considers ward-wise geo-mapping, monitoring of SWM value chain through ICT interventions like Swachh Nagar App and zone-wise rating in cities with a population above 50 lakh.

Performance of cities

  • Accordingly, as per the 2020 survey, 6 cities have been graded 5 stars, 65 Cities rated 3 Star and 70 Cities rated 1 Star.

5 Star Cities

ULB Name State Final Rating
Ambikapur Chhattisgarh 5 Star
Rajkot Gujarat 5 Star
Surat Gujarat 5 Star
Mysore Karnataka 5 Star
Indore Madhya Pradesh 5 Star
Navi Mumbai Maharashtra 5 Star

Assessment under the protocol

  • To ensure that the Protocol has a SMART framework, the MoHUA has developed a three-stage assessment process.
  • In the first stage, ULBs populate their progress data on the portal along with supporting documents within a particular timeframe.
  • The second stage involves a desktop assessment by a third-party agency selected and appointed by MoHUA.
  • Claims of cities that clear the desktop assessment are then verified through independent field-level observations in the third stage.

Significance

  • This certification is an acknowledgement of the clean status of Urban Local Bodies and strengthened SWM systems as well as a mark of trust and reliability akin to universally known standards.

Back2Basics: Swachh Bharat Mission (SBM)

  • SBM is a nation-wide campaign in India for the period 2014 to 2019 that aims to clean up the streets, roads and infrastructure of India’s cities, towns, urban and rural areas.
  • The objectives of Swachh Bharat include eliminating open defecation through the construction of household-owned and community-owned toilets and establishing an accountable mechanism of monitoring toilet use.
  • Run by the GoI, the mission aims to achieve an “open-defecation free” (ODF) India by 2 October 2019, the 150th anniversary of the birth of Mahatma Gandhi by constructing 90 million toilets in rural India.
  • The mission will also contribute to India reaching Sustainable Development Goal 6 (SDG 6), established by the UN in 2015.
  • It is India’s largest cleanliness drive to date with three million government employees and students from all parts of India participating in 4,043 cities, towns, and rural areas.
  • The mission has two thrusts: Swachh Bharat Abhiyan (“gramin” or ‘rural’), which operates under the Ministry of Drinking Water and Sanitation; and Swachh Bharat Abhiyan (‘urban’), which operates under the Ministry of Housing and Urban Affairs.

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Defence Sector – DPP, Missions, Schemes, Security Forces, etc.

[pib] Shekatkar Committee recommendations on Border Infrastructure

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Shekatkar Committee

Mains level: Significance of the Border Infrastructure

Government has accepted and implemented three important recommendations of the Committee of Experts (CoE) under the chairmanship of Lt General D B Shekatkar (Retd.) relating to border Infrastructure.

Practice question for mains:

Q. India’s unique geo-strategic location needs an all-weather and efficient border infrastructure. Comment.

About Shekatkar Committee

  • The military reforms committee – under Lt General (retd.) DB Shekatkar – was set up by then Raksha Mantri Manohar Parrikar in 2015.
  • The committee was established with a mandate for Enhancing Combat Capability and Rebalancing Defence Expenditure.
  • Shekatkar Committee had made recommendations on enhancing the combat potential of India’s three armed forces, rationalizing the defence budget etc.
  • The committee submitted its report on December 21, 2016. It had apparently exceeded its brief with some 200 recommendations.
  • A major recommendation is that the defence budget should be 2.5% to 3% of the GDP.

Recommendations on border infrastructure

  • On the matter related to creating border infrastructure, the Government has implemented the recommendation of CoE to outsource road construction work beyond the optimal capacity of Border Roads Organisation (BRO).
  • These were related to speeding up road construction, leading to socio-economic development in the border areas.
  • The other recommendation relating to the introduction of modern construction plants, equipment and machinery has been implemented.

Back2Basics: Border Roads Organisation (BRO)

  • The BRO develops and maintains road networks in India’s border areas and friendly neighboring countries and functions under the Ministry of Defence.
  • It is entrusted for construction of Roads, Bridges, Tunnels, Causeways, Helipads and Airfields along the borders.
  • Officers from the Border Roads Engineering Service (BRES) and personnel from the General Reserve Engineer Force (GREF) form the parent cadre of the Border Roads Organisation.
  • It is also staffed by officers and troops drawn from the Indian Army’s Corps of Engineers on extra regimental employment.
  • The BRO operates and maintains over 32,885 kilometers of roads and about 12,200 meters of permanent bridges in the country.

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Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

[pib] National Migrant Information System (NMIS)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: National Migrant Information System (NMIS)

Mains level: Inter-state workers migration

The National Disaster Management Authority (NDMA) has developed an online Dashboard – National Migrant Information System (NMIS).

Did you notice, the peculiarity of the NMIS? The portal is developed and maintained by the National Disaster Management Authority (NDMA) not Ministry of Labour & employment or Labour bureau.

About NMIS

  • The NMIS aims to capture the information regarding the movement of migrants and facilitate the smooth movement of stranded persons across States.
  • The key data pertaining to the persons migrating has been standardized for uploading such as name, age, mobile no., originating and destination district, date of travel etc., which States are already collecting.
  • States will be able to visualize how many people are going out from where and how many are reaching destination States.
  • The mobile numbers of people can be used for contact tracing and movement monitoring during COVID-19.

Benefits

  • The portal helps maintain a central repository on migrant workers and help in speedy inter-State communication/co-ordination to facilitate their smooth movement to native places.
  • It has additional advantages like contact tracing, which may be useful in overall COVID-19 response work.

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Innovations in Biotechnology and Medical Sciences

[pib] Iron-Manganese based Biodegradable Alloy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Iron-Manganese based Biodegradable Alloy

Mains level: Affordable medical devices and implants in India

Indian scientists have jointly developed new generation Iron-Manganese based alloys for biodegradable metal implants for use in humans.

Do you remember the Johnson and Johnson’s faulty hip implants case?? The alloy mentioned in the newscard can prove to be a gamechanger in the field of medical implants.

Iron-Manganese based Biodegradable Alloy

  • Biodegradable materials (Fe, Mg, Zn, and polymer) can participate in the healing process and then degrade gradually by maintaining mechanical integrity without leaving any implant residues in the human body.
  • They are better alternatives to currently used metallic implants which remain permanently in the human body and can cause long-term side effects like systemic toxicity, chronic inflammation, and thrombosis.
  • The ARCI team employed both conventional melting and powder metallurgy techniques in the manufacturing of the new Fe-Mn based biodegradable alloys.
  • The alloy Fe-Mn (having Mn composition of more than 29% by weight) is a promising biodegradable metallic implant which exhibits a single austenitic phase (a non-magnetic form of iron) with MRI compatibility.

Easy degradation

  • The alloy also showed a degradation rate in the range of 0.14-0.026 mm per year in the simulated body fluid.
  • It means that the Fe-Mn alloy exhibits mechanical integrity for 3-6 months and completely, disappears from the body in 12-24 months.
  • During the degradation process, calcium phosphate deposits on the implant due to local alkalization and saturation of calcium and phosphate, allow cells to adhere onto the surface to form tissues.

Benefits

  • The Fe-Mn alloy produced at ARCI exhibited 99% density with impressive mechanical properties and behaved as a nonmagnetic material even under a strong magnetic field.
  • These properties are comparable to presently used permanent Titanium (Ti) and stainless-steel metallic implants (which is very costly).

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Defence Sector – DPP, Missions, Schemes, Security Forces, etc.

[pib] Defence Testing Infrastructure Scheme (DTIS)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Defence Testing Infrastructure Scheme (DTIS)

Mains level: Defence manufacturing promotion measures

In order to give a boost to domestic defence and aerospace manufacturing, Raksha Mantri has approved the launch of the Defence Testing Infrastructure Scheme (DTIS).

 

Practice question for mains:

Q. Self-reliance in defence manufacturing is one of the key objectives of ‘Make in India’. Discuss.

 

Defence Testing Infrastructure Scheme (DTIS)

  • The DTIS would run for the duration of five years and envisages set up six to eight new test facilities in partnership with private industry.
  • The scheme has been allocated with an outlay of Rs 400 crore for creating a state of the art testing infrastructure for this sector.
  • This will facilitate indigenous defence production, consequently, reduce imports of military equipment and help make the country self-reliant.
  • While the majority of test facilities are expected to come up in the two Defence Industrial Corridors (DICs), the Scheme is not limited to setting up Test Facilities in the DICs only.

Funding pattern

  • The projects under the Scheme will be provided with up to 75 per cent government funding in the form of ‘Grant-in-Aid’.
  • The remaining 25 per cent of the project cost will have to be borne by the Special Purpose Vehicle (SPV) whose constituents will be Indian private entities and State Governments.
  • The SPVs under the Scheme will be registered under Companies Act 2013 and shall also operate and maintain all assets under the Scheme, in a self-sustainable manner by collecting user charges.

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Coronavirus – Economic Issues

[pib] Atmanirbhar Bharat Abhiyan (Self-reliant India Mission)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Atmanirbhar Bharat Abhiyan

Mains level: Significance and need for such a mission

The PM has announced the Atma-nirbhar Bharat Abhiyan (or Self-reliant India Mission) and said that in the days to come the government would unveil the details of an economic package — worth Rs 20 lakh crore or 10% of India’s GDP in 2019-20 — aimed towards achieving this mission.

Try a question:

‘Doubling Farmer’s Income’ and ‘USD 5 trillion economy’  seems more like slogans today in wake of COVID pandemic. Comment on the statement with keeping in view the Atmanirbhar Bharat Abhiyan of the government.

Atmanirbhar Bharat: With a special package

  • PM has announced a special economic package and gave a clarion call for Self-reliant India.
  • The package will provide a much-needed boost towards achieving self-reliance.
  • This package, taken together with earlier announcements by the government during COVID crisis and decisions taken by RBI, is to the tune of Rs 20 lakh crore, which is equivalent to almost 10% of India’s GDP.
  • The package will also focus on land, labour, liquidity and laws. It will cater to various sections including cottage industry, MSMEs, labourers, middle class, and industries, among others.

Five pillars of a self-reliant India

PM iterated that a self-reliant India will stand on five pillars viz.

1) Economy, which brings in quantum jump and not incremental change

2) Infrastructure, which should become the identity of India

3) System, based on 21st-century technology-driven arrangements

4) Vibrant Demography, which is our source of energy for a self-reliant India and

5) Demand, whereby the strength of our demand and supply chain should be utilized to full capacity

Is this a new package?

  • The PM did not give the details, but he specified that this calculation of Rs 20 lakh crore includes what the government has already announced and the steps taken by the RBI.
  • This means the total amount of additional money — that is over and above what the government would have spent even in the absence of a Covid crisis — will not be Rs 20 lakh crore.
  • It would be substantially less.

Why?

  • That’s because the PM has included the actions of RBI, India’s central bank, as part of the government’s “fiscal” package, even though only the government controls the fiscal policy and not the RBI (which controls the ‘monetary’ policy).
  • Government expenditure and RBI’s actions are neither the same nor can they be added in this manner.

What did the RBI provide earlier?

  • A rough estimate suggests that the RBI’s decisions have provided additional liquidity of Rs 5-6 lakh crore since the start of the Covid-19 crisis.
  • Add this to the Rs 1.7 lakh crore of the first fiscal relief package announced by the Centre on March 26. Together, the two already account for 40 per cent of the Rs 20-lakh crore package.
  • That leaves an effective amount of Rs 12 lakh crore.
  • However, if the government is including RBI’s liquidity decisions in the calculation, then the actual fresh spending by the government could be considerably lower than Rs 12 lakh crore.
  • That’s because RBI has been coming out with long term bond-buying operations (long term repo operation or LTRO, to infuse liquidity into the banking system) worth Rs 1 lakh crore at a time.
  • If for argument’s sake, RBI comes out with another LTRO of Rs 1 lakh crore, then the overall fiscal help falls by the same amount.

Why shouldn’t RBI’s package be included in the overall package?

  • That is because direct expenditure by a government — either by way of wage subsidy or direct benefit transfer or any, immediately and necessarily stimulates the economy.
  • In other words, that money necessarily reaches the people — either as someone’s salary or someone’s purchase.
  • But credit easing by the RBI — that is, making more money available to the banks so that they can lend to the broader economy — is not like government expenditure.
  • That’s because, especially in times of crisis, banks may take that money from RBI and elsewhere and, instead of lending it, park it back with the RBI.

Back2Basics: Long Term Repo Operations (LTRO)

  • The LTRO is a tool under which the RBI provides 1-3 year money to banks at the prevailing repo rate, accepting government securities with matching or higher tenure as the collateral.
  • Funds through LTRO are provided at the repo rate.
  • But usually, loans with higher maturity period (here like 1 year and 3 years) will have a higher interest rate compared to short term (repo) loans.
  • According to the RBI, the LTRO scheme will be in addition to the existing Liquidity Adjustment Facility (LAF) and the Marginal Standing Facility (MSF) operations.
  • The LAF and MSF are the two sets of liquidity operations by the RBI with the LAF having a number of tools like repo, reverse repo, term repo etc.

What are Repo and Reverse Repo rates?

  • The repo rate is the rate at which the RBI lends money to the banking system (or banks) for short durations.
  • The reverse repo rate is the rate at which banks can park their money with the RBI.
  • With both kinds of the repo, which is short for repurchase agreement, transactions happen via bonds — one party sells bonds to the other with the promise to buy them back (or repurchase them) at a later specified date.
  • In a growing economy, commercial banks need funds to lend to businesses.
  • One source of funds for such lending is the money they receive from common people who maintain savings deposits with the banks. Repo is another option.

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Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

[pib] CHAMPIONS Portal for Indian MSMEs

Note4Students

From UPSC perspective, the following things are important :

Prelims level: CHAMPIONS Portal

Mains level: Not Much

In a major initiative, Union Ministry of MSME has launched CHAMPIONS portal for assisting Indian MSMEs march into the big league as National and Global Champions.

MSME sector has been hit badly by COVID. Initiatives like CHAMPIONS portal are crucial for this sector.

CHAMPIONS Portal

  • ‘CHAMPIONS’ is a technology-driven Control Room-Cum-Management Information System.
  • The CHAMPIONS is an acronym for Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength
  • As the name suggests, the portal is basically for making the smaller units big by solving their grievances, encouraging, supporting, helping and handholding.
  • It is a technology-packed control room-cum-management information system.

Three basic objectives of the CHAMPIONS

1) How to help the MSMEs in this difficult situation in terms of finance, raw materials, labour, permissions, etc.

2) How to help them capture new opportunities like manufacturing of medical accessories and products like PPEs, masks, etc.

3) How to identify the sparks, i.e., the bright MSMEs who can not only withstand but can also become national and international champions.

Technology imbibed in the portal

  • In addition to ICT tools including telephone, internet and video conference, the system is enabled by Artificial Intelligence, Data Analytics and Machine Learning.
  • It is also fully integrated on a real-time basis with GOI’s main grievances portal CPGRAMS and MSME Ministry’s own other web-based mechanisms.
  • The entire ICT architecture is created in house with the help of NIC in no cost. Similarly, the physical infrastructure is created in one of the ministry’s dumping rooms in record time.

 A hub and spoke model of network

  • As part of the system, a network of control rooms is created in a Hub & Spoke Model.
  • The Hub is situated in New Delhi in the Secretary MSME’s office.
  • The spokes will be in the States in various offices and institutions of Ministry.
  • As of now, 66 state-level control rooms are created as part of the system.

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Financial Inclusion in India and Its Challenges

[pib] Atal Pension Yojana:  Marking 5 Years of Implementation

Note4Students

From UPSC perspective, the following things are important :

Prelims level: APY, NPS, PFRDA

Mains level: Old age security concerns addressed by APY

The flagship social security scheme ‘Atal Pension Yojana’ (APY) has completed five years of successful implementation.

Five years of successfull implemention of APY is a significant feat. A statement based prelims question on terms of enrolment of the APY can be asked.

Atal Pension Yojana

  • APY is a government-backed pension scheme, primarily targeted at the unorganised sector.
  • It is a social security scheme launched by the government on 9th May 2015 to provide a defined pension between Rs 1,000 to Rs 5,000.
  • It aims of delivering old age income security particularly to the workers in the unorganised sector with a guarantee of minimum pension after 60 years of age.

Terms of enrolment

  • APY can be subscribed by any Indian citizen in the age group of 18-40 years having a bank account and its uniqueness is attributable to three distinctive benefits.
  • First, it provides a minimum guaranteed pension ranging from Rs 1000 to Rs 5000 on attaining 60 years of age,
  • Secondly, the amount of pension is guaranteed for a lifetime to spouse on death of the subscriber.
  • And lastly, in the event of the death of both the subscriber and the spouse, entire pension corpus is paid to the nominee.

Success of the scheme

  • The scheme has now 2.23 crores enrolment.
  • Apart from remarkable enrolments, the scheme has been implemented comprehensively across the country covering all states and UTs with male to a female subscription ratio of 57:43.

About PFRDA

  • Pension Fund Regulatory and Development Authority (PFRDA) is the statutory authority established by an enactment of the Parliament.
  • It aims to regulate, promote and ensure orderly growth of the National Pension System (NPS) and pension schemes to which this Act applies.
  • NPS was initially notified for central government employees recruits w.e.f. 1st Jan 2004 and subsequently adopted by almost all State Governments for its employees.
  • NPS was extended to all Indian citizens (resident/non-resident/overseas) on a voluntary basis and to corporates for its employees.

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Innovations in Biotechnology and Medical Sciences

[pib] BiPAP Non-Invasive Ventilator “SwasthVayu”

Note4Students

From UPSC perspective, the following things are important :

Prelims level: SwasthVayu

National Aerospace Laboratories (NAL) Bangalore, a constituent of the lab of CSIR has developed a Non-Invasive BiPAP Ventilator ‘SwasthVayu ’in a record time of 36 days to treat COVID-19 patients.

The name ‘SwasthVayu’ can be tricky to guess, specially after some days. In prelims, UPSC may throw some options related to air pollution.

SwasthVayu

  • A ventilator is a machine that provides mechanical ventilation by moving breathable air into and out of the lungs, to deliver breaths to a patient who is physically unable to breathe, or breathing insufficiently.
  • BiPAP (Bilevel Positive Airway Pressure) Non-Invasive ventilator is a microcontroller-based precise closed-loop adaptive control system.
  • It is a built-in biocompatible “3D printed manifold & coupler” with HEPA filter (Highly Efficient Particulate Air Filter).

Benefits of SwasthVayu

  • The major advantage of this machine is that it is simple to use without any specialized nursing, cost-effective, compact and configured with the majority of indigenous components.
  • This is ideal for treating COVID -19 patients in Wards, Makeshift Hospitals, dispensaries and home in current Indian COVID 19 scenario.

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Roads, Highways, Cargo, Air-Cargo and Logistics infrastructure – Bharatmala, LEEP, SetuBharatam, etc.

[pib] Kailash – Mansarovar Yatra Route from Dharchula to Lipulekh

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Various passes in news, BRO

Mains level: India's border connectivity and the role of BRO

The Border Roads Organisation (BRO) has completed the construction of road from Dharchula to Lipulekh along the China Border, famously known as Kailash-Mansarovar Yatra Route.

We can expect a prelims question asking to arrange few passes from West to East or vice versa. Click here to get through all such Himalayan Passes.

Darchula – Lipulekh road

  • The road is an extension of Pithoragarh-Tawaghat-Ghatiabagarh road. In this 80 Km road, the altitude rises from 6000 feet to 17,060 feet.
  • It originates from Ghatiabagarh in Uttarakhand and terminates at Lipulekh Pass, the gateway to Kailash Mansarovar.
  • With the completion of this project, the arduous trek through treacherous high-altitude terrain can now be avoided by the Pilgrims of Kailash Mansarovar Yatra and the period of journey will be reduced by many days.

(Note: The Lipulekh Pass links Uttarakhand with China’s Tibetan Autonomous Region.)

Significance

  • At present, the travel to Kailash Mansarovar takes around two to three weeks through Sikkim or Nepal routes.
  • Lipulekh route had a trek of 90 Km through high altitude terrain and the elderly yartris faced lot of difficulties.
  • Now, this yatra will get completed by vehicles.

Also read:

The Northern and Northeastern Mountains | Part 2


Back2Basics: Border Roads Organisation (BRO)

  • The BRO develops and maintains road networks in India’s border areas and friendly neighboring countries and functions under the Ministry of Defence.
  • It is entrusted for construction of Roads, Bridges, Tunnels, Causeways, Helipads and Airfields along the borders.
  • Officers from the Border Roads Engineering Service (BRES) and personnel from the General Reserve Engineer Force (GREF) form the parent cadre of the Border Roads Organisation.
  • It is also staffed by officers and troops drawn from the Indian Army’s Corps of Engineers on extra regimental employment.
  • The BRO operates and maintains over 32,885 kilometers of roads and about 12,200 meters of permanent bridges in the country.

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

[pib] Seasonal rapid advancement of Surging Glaciers in Karakoram Range

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Glaciers mentioned in the newscard

Mains level: Glacial surges and their impacts

Indian researchers have found a seasonal advancement in 220 surge-type glaciers in the Karakoram Range of Ladakh.

Points to note:

1) Open you map and revise the glaciers of Himalayan region.

2) Glacial landforms as Geographic phenomenon.

What are Glacial Surges?

Click here to see the animated view

  • Glacial surges are short-lived events where a glacier can advance substantially, moving at velocities up to 100 times faster than normal.
  • Until recently, most glaciologists believed that a glacier’s physical characteristics, such as its thickness and shape, and the properties of the terrain it sits on determining whether it can surge.
  • Now, it is proved to believe an external factor also plays a major role: water from precipitation and melting.
  • Pooling on the surface, it can infiltrate the glacier through crevasses and reach its base, warming, lubricating, and, ultimately, releasing the ice.

Why surging in the Karakoram is a concern?

  • The behaviour of these glaciers, which represent 40% of the total glaciated area of the Karakoram, goes against the normal trend.
  • Surging of glaciers is potentially catastrophic as it can lead to the destruction of villages, roads and bridges.
  • It can also advance across a river valley and form the ice-dammed lake.
  • These lakes can form catastrophic outburst floods.
  • Therefore, monitoring of glacier surges, ice-dammed lake formation, and drainage is of paramount importance.

Which are these glaciers?

  • The scientists focused on the Shispare and Muchuhar glaciers, former tributaries of the once larger Hasanabad Glacier situated in Hunza Valley, Gilgit-Baltistan.

Significance of the study

  • The Surge-type glaciers oscillate between brief (months to years) rapid flow and lengthy (tens to hundreds of years) slow flow or stagnation, which are called the ‘active’ (or ‘surge’) and ‘quiescent’ phases, respectively.
  • This unsteady glacier flow makes it difficult to accurately assess individual glacier mass balances using in-situ observations.
  • The study will help to understand the diversity of glacial behaviour and help make accurate assessments of individual glacier mass balances for disaster planning and management.

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Policy Wise: India’s Power Sector

[pib] Data on Energy Savings

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Various schemes mentioned in the newscard

Mains level: Energy saving and its significance in carbon emissions reduction

The Union Ministry of Power has released a Report on “Impact of energy efficiency measures for the year 2018-19”.

Things to note:

1) UJALA Scheme

2) PAT Scheme

3) Standards & Labeling Programme

Possible mains question:

Q. Discuss the role of Bureau of Energy Efficiency (BEE) in “institutionalizing” energy efficiency services in India.

About the report

  • This report was prepared by an Expert agency PWC Ltd, who was engaged by the Bureau of Energy Efficiency (BEE).
  • The objective of this study is to evaluate the performance and impact of all the key energy efficiency programmes in India, in terms of total energy saved and the related reduction in CO2 emissions.

Data on energy savings

  • With our energy efficiency initiatives, we have already reduced the energy intensity of our economy by 20% compared to 2005 levels. This includes both the Supply Side and Demand Side sectors of the economy.
  • The implementation of various energy efficiency schemes has led to total electricity savings to the tune of 113.16 Billion Units in 2018-19, which is 9.39% of the net electricity consumption.
  • Energy savings (electrical + thermal), achieved in the energy-consuming sectors is to the tune of 16.54 Mtoe, which is 2.84% of the net total energy consumption in 2018-19.
  • Overall this has translated into savings worth INR 89,122 crores against last year’s savings of INR 53,627 crore.
  • These efforts have also contributed to reducing 151.74 Million Tonnes of CO2 emissions, whereas last year this number was 108 MTCO2.

(Note: Mtoe= million Tonne of Oil Equivalent)

What led to this significant savings?

  • The study has identified the following major programmes, viz. Perform, Achieve and Trade Scheme, Standards &Labelling Programme, UJALA Programme, Municipal Demand Side Management Programme, etc.
  • There is huge capacity still for bringing efficiencies especially in MSME sector and a Housing sector that has now been taken up.

About the Bureau of Energy Efficiency (BEE)

  • The Bureau of Energy Efficiency is an agency under the Ministry of Power created in March 2002 under the provisions of the nation’s 2001 Energy Conservation Act.
  • Its function is to develop programs which will increase the conservation and efficient use of energy in India.
  • The mission of BEE is to “institutionalize” energy efficiency services, enable delivery mechanisms in the country and provide leadership to energy efficiency in all sectors of the country.

Back2Basics

1) PAT Scheme

  • Perform Achieve and Trade (PAT) scheme is a flagship programme of the Bureau of Energy Efficiency under the National Mission for Enhanced Energy Efficiency (NMEEE).
  • NMEEE is one of the eight national missions under the National Action Plan on Climate Change (NAPCC) launched in the year 2008.
  • The scheme aims to reduce specific energy consumption in energy-intensive industries through certification of excess energy saving which can be traded.
  • It refers to the calculation of Specific Energy Consumption (SEC) in the baseline year and projected SEC in the target year covering different forms of net energy going into the boundary of the designated consumers’ plant and the products leaving it over a particular cycle.
  • Those eight Energy Intensive Sectors included are Chlor-alkali, Pulp & Paper, Textile, Aluminum, and Thermal Power plants, Fertilizer, Iron & Steel and Cement.

2) Standards & Labeling Programme

  • It is one of the major thrust areas of BEE.
  • A key objective of this scheme is to provide the consumer with an informed choice about the energy-saving and thereby the cost-saving potential of the relevant marketed product.
  • The scheme targets display of energy performance labels on high energy end-use equipment & appliances and lay down minimum energy performance standards.

3) UJALA Scheme

  • Launched in 2015, the Unnat Jyoti by Affordable LEDs for All (UJALA), in a short span of time, has emerged as the world’s largest domestic lighting programme.
  • The main objective is to promote efficient lighting, enhance awareness on using efficient equipment which reduces electricity bills and helps preserve the environment.
  • The Electricity Distribution Company and Energy Efficiency Services Limited (EESL) a public sector body of the Ministry of Power is implementing the programme.

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Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

[pib] Energy-efficient Photodetector for Security Application

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Photodetectors and their applications

Mains level: NA

Indian scientists have fabricated an economical and energy-efficient wafer-scale photodetector using gold – silicon interface, for security applications.

A basic question on the working principle of Photodetectors can be asked in the Prelims.

What are Photodetectors?

  • Photodetectors, also called photosensors, are sensors of light or other electromagnetic radiation.
  • A photodetector has a p–n (positive-negative) junction that converts light photons into the current.
  • The absorbed photons make electron-hole pairs in the depletion region.
  • Photodiodes and phototransistors are a few examples of photodetectors. Solar cells convert some of the light energy absorbed into electrical energy.
  • The material cost and the intricate fabrication processes involved in realizing high-performance detectors make them unaffordable for day to day applications.

Applications

  • Photodetectors are the heart of any optoelectronic circuit that can detect light.
  • They are employed for a wide variety of applications ranging from controlling automatic lighting in supermarkets to detecting radiation from the outer galaxy as well as security-related applications.
  • They range from simple devices that automatically open supermarket doors, to receivers on the TV remote controls.

What did Indian researchers achieve?

  • The scientists have fabricated gold (Au) – silicon (Si) interface, which showed high sensitivity towards light demonstrating the photodetection action.
  • The Au–Si interface was brought about by galvanic deposition, a technique for electroplating of metals, wherein water-based solutions (electrolytes) are used, which contain the metals to be deposited as ions.
  • In addition, a nanostructured Au film also was deposited on top of p-type silicide (having an excess of positive charges), which acts as a charge collector.

Benefits

  • Being a solution-based technique, the method is highly economical and enabled large-area fabrication without compromising the detector response.
  • The process is quick, taking only minutes to fabricate a detector of any arbitrary area and exhibited a rapid response of 40 microseconds.
  • This photodetector displayed long-term environmental stability.
  • The Indian invention provides a simple and cost-effective solution-based fabrication method for high-performance photodetector.
  • It could help detect weak scattered light as an indication of unwanted activity.

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Wildlife Conservation Efforts

[pib] Study of flowering plant endemism of Northern Western Ghats

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Abutilon ranadei

Mains level: NA

Scientists at the Agharkar Research Institute (ARI), Pune have come up with plant data of the Northern Western Ghats which indicates that plateaus, in addition to the forests, should be prioritized for the conservation of the Northern Western Ghats.

Last year one  species from our newscard : Species in news: Hump-backed Mahseer made it into the CSP 2019.  The ‘Abutilon ranadei’ flower in the newscard creates such a vibe yet again.

A stand-alone species being mentioned in the news for the first time often find their way into the prelims. Make a special note here.

Why conserve Plateaus?

  • The Western Ghats of India is one of the global biodiversity hotspots owing to the endemism that is sheltered by a chain of mountains.
  • The northern part of this along with the Konkan region is considerably different from its southern and central counterparts on account of lesser precipitation and extended dry season.
  • It is the plateaus and the cliffs that harbour most of the endemic species.

What did the study find?

  • The study found that the Northern Western Ghats has 181 local endemic plant species, including four monospecific genera.
  • They have found that a majority of the endemic species are therophytes, which complete their life cycle in a short period during monsoon.
  • A notable geographical feature of the Northern Western Ghats is the presence of plateaus and cliffs that display maximum endemic species, unlike forests.
  • It is the region of rapid diversification of specific herbaceous endemic genera like Ceropegia, Glyphochloa, Dipcadi, and Eriocaulon.

One such specie is-

Abutilon ranadei

  • Abutilon ranadei is a shrub, measuring 2.5-3.5 m high and bears star-shaped hairs.
  • It is a Critically Endangered endemic species from the northern Western Ghats.

Bonus:

Consider the following pairs:

Wildlife Naturally found in
1. Blue-finned Mahseer Cauvery River
2. Irrawaddy Dolphin Chambal River
3. Rusty-spotted Cat Eastern Ghats

Which of the pairs given above are correctly matched?

(a) 1 and 2 only

b) 2 and 3 only

c) 1 and 3 only

d) 1, 2 and 3

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Microfinance Story of India

[pib] Saras Collection on Government e-Marketplace

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Saras Collection, GeM

Mains level: Not Much

The Union Ministry for Rural Development and Panchayati Raj and Agriculture and Farmers’ Welfare has launched “The Saras Collection” on the Government e-Marketplace (GeM) portal.

Possible prelim question:

‘The Saras Collection’ recently seen in news is a:

a) Subsidy on beekeeping and apiculture projects

b) Indigenous light transport aircraft

c) Database on wetland birds

d) Collection of products made by SHGs

 The Saras Collection

  • It is a unique initiative by the GeM, Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) and Ministry of Rural Development.
  • The collection showcases daily utility products made by rural Self-Help Groups (SHGs) and aims to provide SHGs in rural areas with market access to Central and State Government buyers.
  • The on-boarding of the SHGs has been initially piloted in the states of Bihar, Chhattisgarh, Jharkhand, Karnataka, Kerala, Himachal Pradesh, Maharashtra, Odisha, Rajasthan, Uttar Pradesh and West Bengal.
  • SHGs from all the states and Union Territories (UTs) will be covered rapidly in the upcoming phases.

It’s functioning

  • For Functionaries: They will be provided dashboards at the national, state, district and block level for real-time information about the number of products uploaded, their value and volume of orders received and fulfilled.
  • Government buyers: They will be sensitized through system-generated messages/ alerts in the Marketplace about the availability of SHG products on the portal.

Benefits offered

  • The Saras Collection will provide SHGs with direct access to Government buyers which will do away with intermediaries in the supply chain.
  • Thus it would ensure better prices for SHGs and spurring employment opportunities at the local level.

Back2Basics: Government e-Marketplace

  • The GeM is a one-stop National Public Procurement Portal to facilitate online procurement of common use Goods & Services required by various Government Departments / Organizations / PSUs.
  • It was launched in 2016 to bring transparency and efficiency in the government buying process.
  • GEM aims to enhance transparency, efficiency and speed in public procurement.
  • It is a completely paperless, cashless and system driven e-marketplace that enables procurement of common use goods and services with minimal human interface.
  • It provides the tools of e-bidding, reverse e-auction and demand aggregation to facilitate the government users to achieve the best value for their money.
  • The purchases through GeM by Government users have been authorized and made mandatory by the Ministry of Finance by adding a new Rule No. 149 in the General Financial Rules, 2017.
  • It has been developed by Directorate General of Supplies and Disposals (Ministry of Commerce and Industry) with technical support of National e-governance Division (MEITy).

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Innovations in Biotechnology and Medical Sciences

[pib] UV Blaster: A UV Disinfection Tower

Note4Students

From UPSC perspective, the following things are important :

Prelims level: UV germicidal irradiation

Mains level: Can always be used as an example

The DRDO has developed an Ultra Violet (UV) Disinfection Tower for rapid and chemical-free disinfection of high infection-prone areas.

GYAN:

We have a UV filter in our home based water filter.  Ever wondered, how do UV rays kill viruses/bacteria?

UV Blaster

  • The UV blaster is a UV based area sanitizer designed and developed by Laser Science & Technology Centre (LASTEC), the Delhi based premier laboratory of DRDO.
  • It is useful for high tech surfaces like electronic equipment, computers and other gadgets in laboratories and offices that are not suitable for disinfection with chemical methods.
  • The product is also effective for areas with a large flow of people such as airports, shopping malls, metros, hotels, factories, offices, etc.

How does it work?

  • The UV based area sanitizer may be used by remote operation through laptop/mobile phone using wifi link.
  • The equipment has six lamps each with 43 watts of UV-C power at 254 nm wavelength for 360-degree illumination.
  • For a room of about 12 x 12 feet dimension, the disinfection time is about 10 minutes and 30 minutes for 400 square feet area by positioning the equipment at different places within the room.
  • This sanitizer switches off on the accidental opening of a room or human intervention.

Back2Basics: UV germicidal irradiation

  • UV irradiation is a disinfection method that uses short-wavelength ultraviolet rays to kill or inactivate microorganisms by destroying nucleic acids and disrupting their DNA, leaving them unable to perform vital cellular functions.
  • UVGI is used in a variety of applications, such as food, air, and water purification.
  • UVGI devices can produce strong enough UVC light in circulating air or water systems to make them inhospitable environments to microorganisms such as bacteria, viruses, moulds, and other pathogens.
  • UVGI can be coupled with a filtration system to sanitize air and water.
  • It has been used primarily in medical sanitation and sterile work facilities.
  • Increasingly, it has been employed to sterilize drinking and wastewater since the holding facilities are enclosed and can be circulated to ensure a higher exposure to the UV.

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