9 PM UPSC Current Affairs Brief 29 Jan, 2024

Mains Oriented Articles

GS PAPER - 2

Progress of Aadhaar-Based Payment Systems for NREGA Wage Payments

Source: This post on Aadhaar-Based Payment Systems (ABPS) for NREGA Wage Payments has been created based on the article “Aadhaar-based pay a bad idea for MGNREGS” published in “The Hindu” on 29^th January 2024.

UPSC Syllabus Topic: GS Paper 2 Governance – Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Progress of Aadhaar-Based Payment Systems for NREGA Wage Payments, The article discusses the issues with using Aadhaar-Based Payment Systems (ABPS) in MGNREGS wage payments.

Background:

Recently, the Rural Development Ministry made Aadhaar-Based Payment Systems (ABPS) mandatory in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).

There are 2 modes of wage payments in MGNREGS: account-based and ABPS. As per the government’s data, out of 25.6 crore registered workers, only 16.9 crore workers are eligible for ABPS while all are eligible for account-based payments.

How are Payments Made Through ABPS?

For ABPS, the following procedure needs to be done:

First, a worker’s Aadhaar number must be linked to their job card. Authentication is successful only when all the details including spelling and gender match.

Second, Aadhaar must be linked to the bank account.

Third, the Aadhaar number of each worker must be mapped correctly through their bank branch with a software mapper of the National Payments Corporation of India.

The Aadhaar number acts as the financial address and cash transferred gets deposited to the last Aadhaar-linked bank account.

What are the advantages of using ABPS, as claimed by the government?	What are the issues with these claims?
1) Will remove duplicate job cards and lead to savings.	No publicly available audits on the procedures followed by officials in deleting job cards and the valid scientific assessment of the gains of such an exercise are available. Studies show how officials have resorted to deleting job cards owing to pressure from the Union government to meet 100% of the Aadhaar seeding targets. There are also strong evidence of exaggerated savings claims due to Aadhaar.
2) Reduce wage payment delays.	Timely payments is only a function of the government allocating adequate funds. With adequate funds, the time taken to pay workers will not be different whether it uses ABPS or account-based payments. The evidence for quicker payments in ABPS compared to account-based payments was not statistically significant (only 3%).
3) Lower payment rejections.	Study finds no statistically significant difference between the rejection rates in the two modes of payments.

Want To Read More Topics-

Myanmar Military Coup and India

On the Issues with Climate Change Treaties

What are Some Other Issues with Using ABPS in MGNREGS Payments?

1. Lack of Evidence: No credible evidence supporting the decision to shift to ABPS was provided by the government.
2. Complex Procedure: Incorrectness in any of the steps for ABPS means that the worker is denied work, does not receive wages, or is not paid in their preferred account.
3. Spelling Mismatches: Since different administrative units are involved in creating different documents in rural areas, spelling mismatches are common.

Hence, according to the authors, the difficulties in resolving problems with ABPS are more than the difficulties in resolving problems with account-based payments and hence, account-based payments are advocated.

Question for practice:

What are the issues with using Aadhaar-Based Payment Systems (ABPS) in MGNREGS wage payments?

Issues with Panchayati Raj Institutions (PRIs)

Source: This post on the Issues with Panchayati Raj Institutions (PRIs) has been created based on the article “Panchayati Raj: It needs funding empowerment” published in “Live Mint” on 29^th January 2024.

UPSC Syllabus Topic: GS Paper 2 Indian Polity – Devolution of powers and finances up to local levels and challenges therein.

News: Issues with Panchayati Raj Institutions, The article discusses the importance and challenges faced by Panchayati Raj Institutions in India, especially with regards to funds.

A detailed article on Local Governance in India can be read here.

Background:

Recently, the RBI’s report on ‘Finances of Panchayati Raj Institutions’ was released. It helps in understanding the fiscal health of the third tier of government in India: local institutions of governance.

Importance of Panchayati Raj Institutions?

1. Governance and Rural Development: Critical to providing local governance and helping in rural development. This is important as almost 69% of our population resides in rural areas
2. Implementation of Policies: Significant role in translating the vision and developmental policies of both the Central and State governments into action.
3. Familiarity with Local Needs: Local governments have a more detailed information on the local needs of citizens than any higher level of government. This makes them best suited to provide basic public goods and services, such as health, education, sanitation, etc.

What are The Challenges with Panchayati Raj Institutions?

1. Funds: Inadequate independent financial resources and heavy reliance on grants from upper tiers of government.
2. Functionaries: Lack of trained manpower.
3. Functions: Lack of political will (to devolve more power and functions to local governments).
4. Weak infrastructure.
5. Regional Disparities: The devolution of powers and functions to panchayats (and their performance) varies greatly across states (India’s southern states have done better than others).

According to the author, the main challenge is inadequate resources.

Want to Read More Topics-

• Nutritional deficiencies in India

• Challenges India Faces in Building Its Military

What are The Issues with PRI Finances?

1) Lack of Own Revenues: PRIs have done little to augment their own revenues—items like property tax, fees and fines.

2) Dependence on Transfers: PRIs have preferred the option of transfers from higher levels of government. This reliance on grants has meant they are not financially self-reliant, restricting their power to take spending decisions.

It is against the principle of subsidiarity, which means that higher levels of government should perform only those functions that cannot be effectively performed at the local level.

Question for practice:

Immediate attention is required to deal with the challenges faced by Panchayati Raj Institutions in India, especially with regards to funds. Discuss.

India and France Bilateral Relations – Ceremony, substance

Source: This post on India-France bilateral relations has been created based on the article “Ceremony, substance” published in “The Hindu” on 29^th January 2024.

UPSC Syllabus Topic: GS Paper 2 International Relations – Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

India and France Bilateral Relations, The article discusses the recent developments in India-France bilateral relations in light of French President Macron’s recent India visit.

Background:

French President Macron recently visited India as the Chief Guest for the Republic Day Parade.

What are the Recent Developments in India-France Bilateral Relations?

1) India and France in 2023 sealed several agreements as they marked 25 years of their strategic partnership.

2) Announcement of the Horizon 2047 framework (to advance cooperation in many areas, including defence, space, and nuclear energy).

3) Announcement of Defence Cooperation Plans (joint production of military hardware, cutting-edge technology transfers and purchase deals for French aircraft, engines and submarines).

What were The Outcomes of The Visit?

1. Defence Industrial Roadmap: It is meant to expand on plans to co-design, co-develop and co-produce defence hardware in the air, on land and sea, as well as a space-defence partnership.
2. Miscellaneous MoUs: MoUs were signed regarding agriculture, digital health and science and technology cooperation.
3. Joint Statement on Global Geopolitics: India was able to take shared positions with France on the condemnation of terror attacks in Israel, the need for humanitarian assistance in Gaza and Ukraine, and concerns over the Red Sea attacks.

 

Want To Read More Topics-

Claudine Gay’s resignation-Lessons from a high-pr

Issues with Panchayati Raj Institutions (PRIs)

 

What are Some Areas which Need Focus?

1) Defence hardware deals.

2) Nuclear cooperation for the long-delayed power project in Jaitapur and for small modular reactors.

The India-France relationship is a work in progress, demonstrating the continuity in a partnership built on a mutual respect for strategic autonomy and a shared commitment to “tradition and innovation”.

Question for practice:

France has emerged as one of India’s most important strategic partner in recent years. Elaborate.

Fiscal position of PRI-Empowering panchayats: Local bodies need more predictable revenue flows

Source: The post fiscal position of PRI has been created, based on the article “Empowering panchayats: Local bodies need more predictable revenue flows” published in “Business standard” on 29th January 2024.

UPSC Syllabus Topic: GS Paper2- Polity- devolution of powers and finances up to local levels and challenges therein.

News: The article discusses a Reserve Bank of India study on the financial state of local government bodies in India. It highlights their limited financial power and dependence on higher government levels.

What is the current state of local government bodies in India?

Post-independence, the 73rd Amendment in 1992 institutionalized PRIs at three levels.

As of December 2022, India has 255,623 gram panchayats, 6,707 mandal panchayats, and 665 zila parishads.

The Fifteenth Finance Commission suggested ₹2.4 trillion for the period under its review.

What are the major findings by RBI study of the fiscal position of PRI?

The RBI study highlights the limited financial capabilities of Panchayati Raj Institutions (PRIs) in India. PRIs are highly dependent on higher government levels for financial support.

In the fiscal year 2022-23, the average revenue per panchayat was ₹21.23 lakh.

This revenue includes taxes, grants, and other sources.

However, PRIs’ own revenue from local taxes and fees was only 1.1% of their total income.

Revenue expenditure of panchayats is less than 0.6% of the gross state domestic product for all states.

The study underscores the need for more fiscal decentralization to enhance the effectiveness of PRIs.

How can the fiscal position of PRIs be improved?

1. Increase financial autonomy for Panchayati Raj Institutions (PRIs) by enhancing their revenue-generating capabilities.
2. Implement Article 243 (I) effectively, requiring states to establish Finance Commissions for fair revenue sharing with PRIs.
3. Enhance administrative skills at local levels for better financial handling and ensure steady, ample funding for effective planning and program execution.
4. Learn from global examples where local governments manage significant portions of tax revenue, such as over 20% in Finland and Switzerland.
5. Encourage decentralization, empowering local leaders to make decisions based on community-specific needs and circumstances.

Question for practice:

Discuss the key findings of the RBI study on the fiscal position of Panchayati Raj Institutions (PRIs) in India.

Nutritional deficiencies in India

Source: The post nutritional deficiencies in India has been created, based on the article “How to tackle malnutrition effectively” published in “Indian express” on 29th January 2024.

UPSC Syllabus Topic: GS Paper2- Governance-issues relating to poverty and hunger. And GS paper3-Economic- food security

News: The article discusses the impact of poor nutrition on health issues like anemia in India. It covers government efforts to improve nutrition through programs and food fortification, the shift in dietary patterns, and the importance of awareness and education to tackle these challenges.

What is nutritional deficiencies?

Nutritional deficiency occurs when a body lacks essential nutrients due to insufficient nutrient-rich food intake (primary deficiency) or medical conditions hindering nutrient absorption (secondary deficiency). It can lead to various health issues but is preventable or resolvable through a balanced diet or targeted nutrient consumption.

What are the factors contributing to nutritional deficiencies in India?

Poor Dietary Choices: Shift from traditional diverse diets to processed, sugar-rich foods.

Economic Constraints: As per FAO, 46% of South Asia’s population, including India, can’t afford a balanced diet. Around 74% of Indians can’t afford a healthy diet, and 39% lack a nutrient-adequate diet (State of Food Security and Nutrition in the World, 2023).

Health Conditions: Diseases like celiac and infections lead to nutrient absorption issues.

Lack of Awareness: Misunderstandings about fortified foods hinder acceptance.

Implementation Challenges: Government programs like Anemia Mukt Bharat face operational difficulties.

What are the impacts of nutritional deficiencies?

Health-Related Concerns: Nutritional deficiencies cause conditions like iron deficiency anemia, impair the immune system, and lead to digestive issues. These are especially prevalent in children and women.

Intergenerational Effects: Anemic mothers often give birth to anemic babies, creating a cycle of malnutrition across generations.

What government initiatives are in place to address nutritional deficiencies?

Anaemia Mukt Bharat (AMB): Focuses on administering iron and folic acid tablets, especially targeting children and women, to tackle iron deficiency anaemia.

Mid-day Meal Scheme: Aimed at school children, this scheme provides nutritious meals during school hours to improve their overall nutrition.

Large-Scale Food Fortification (LSFF): Involves fortifying staple foods like wheat flour, rice, and edible oils with essential micronutrients. This is a relatively new approach in India to combat widespread nutritional deficiencies.

National Iodine Deficiency Disorders Control Programme: Introduced in 1992, it significantly reduced goitre rates through the adoption of iodised salt. This program is an example of successful nutrient fortification in India.

What should be done?

Enhance Awareness: Implement intensive IEC (Information, Education, and Communication) campaigns to educate about fortified foods and nutrition.

Promote Balanced Diets: Encourage traditional diets rich in cereals, pulses, vegetables, fruits, and nuts, moving away from processed foods.

Strengthen Government Programs: Improve execution of Anaemia Mukt Bharat and the Mid-day Meal Scheme for better effectiveness.

Expand Food Fortification: Broaden LSFF (Large-Scale Food Fortification) to include more staples, learning from the success of the iodised salt program.

Question for practice:

Examine the factors contributing to nutritional deficiencies in India and the potential impacts of these deficiencies on public health.

Myanmar Military Coup and India

Source: This post Myanmar Military Coup and India has been created, based on the article “A closer look at Myanmar’s discontent” published in “The Hindu” on 29th January 2024.

UPSC Syllabus Topic: GS Paper 2 – International Relations – India and its Neighborhood – Relations

News: This article discusses the political and military situation in Myanmar. It describes how, since a military coup three years ago, there has been resistance against the army, involving various ethnic armed groups and local defense forces.

What are the consequences of the Myanmar military coup?

Widespread Civil Disobedience: Following the coup, a significant civil disobedience movement emerged, indicating widespread public opposition to the military takeover.

Formation of Resistance Forces: The ousted parliament members established the People’s Defence Forces (PDFs), demonstrating organized political resistance against the military.

Escalating Armed Conflict: Ethnic armed organizations, like the Arakan Army, Myanmar National Democratic Alliance Army, and Ta’ang National Liberation Army, inflicted significant losses on the military, especially in Shan State.

Loss of Territorial Control: The military’s loss of Paletwa town, a critical node in India’s Kaladan project, exemplifies the significant territorial setbacks they faced.

Internal Displacement and Refugees: Military actions against civilians caused substantial internal displacement and a refugee crisis in neighboring countries.

Military Recruitment and Desertions: There’s growing difficulty in military recruitment and increased desertions, including over 150 soldiers seeking refuge in India.

Diminished Military Cohesion: The punishment of army officers for failing to prevent desertions points to internal issues and weakening cohesion within the military.

What is the position of Myanmar’s neighboring countries on the military coup?

China’s Position:

Defends Myanmar Military: China supports the Myanmar military on international platforms.

Engagement with Ethnic Armed Groups: China maintains relations with ethnic armed organizations on Myanmar’s northern border, indicating a strategic balance.

Ceasefire Facilitation: China’s involvement in negotiating a ceasefire between rebels and the Myanmar army suggests its significant influence in the region.

ASEAN’s Stance:

Exclusion of Myanmar Military: ASEAN has denied the Myanmar military participation in its summits.

Limited Mediation Success: Despite efforts, the ASEAN special envoy faced challenges in engaging with all relevant stakeholders in Myanmar.

Thailand’s Approach:

Thailand shares a 2,416 km border with Myanmar, giving it substantial influence.

The Thai Foreign Minister interacted with both Myanmar’s military leadership and Aung San Suu Kyi, reflecting direct diplomatic engagement.

Thailand hosts Myanmar exile organizations and has escalated humanitarian assistance, showcasing its multifaceted involvement in the crisis.

What should India do?

Enhance Humanitarian Aid: India could increase its humanitarian assistance to help displaced people in Myanmar, which might also reduce the number of refugees entering India.

Recognize Ongoing Resistance: India should be aware of the continuous resistance against the military coup, showing no signs of abating despite the lack of a charismatic leader and substantial international support.

Adapt to Myanmar’s Political Fragmentation: It’s important for India to consider the fragmented control in Myanmar, with different areas being controlled by the military, ethnic armed groups, and PDFs.

Reassess Policy with Stakeholder Input: India could benefit from revising its Myanmar policy after engaging in discussions with all relevant parties, responding to the complex regional dynamics.

Question for practice:

Evaluate the impact of the military coup in Myanmar on the country’s internal dynamics and regional relationships

Prelims Oriented Articles (Factly)

Market Access Initiative (MAI) scheme

Source-This post on Market Access Initiative (MAI) scheme has been created based on the article “Interim Budget 2024: Exporters seek higher allocation for MAI scheme” published in “Business Standard” on 29 January 2024.

Why in the news?

Ahead of the interim Budget 2024, exporters have urged the government to allocate funds worth $3.88 billion for the Market Access Initiative (MAI) scheme.

About Market Access Initiative Scheme

Objective	Market Access Initiative (MAI) Scheme is an Export Promotion Scheme envisaged to act as a catalyst to promote India’s exports on a sustained basis.
Strategy	The scheme is formulated on focus product-focus country approach to evolve specific market and specific product through market studies/survey
Eligible activities	1) Marketing Projects Abroad 2) Capacity Building 3) Support for Statutory Compliances 4) Studies 5) Project Development 6) Developing Foreign Trade Facilitation web Portal 7) To support Cottage and handicrafts units
Eligible agencies	1) Departments of Central Government and Organisation of Central/ State Governments including 2) Indian Missions abroad 3) Export Promotion Councils 4) Registered trade promotion Organisation 5) Commodity Boards 6) Apex Trade Bodies recognized under Foreign Trade Policy of Govt of India 7) Recognized Industrial & Artisan Clusters 8) Individual Exporters (only for statutory compliance etc.) 9) National Level Institutions (e.g. Indian Institutes of Technology (IITs), Indian Institutes of Management (IIMs), National Institute of design (NIDs), NIFT etc.)/ Research Institutions/Universities/ Recognized laboratories, etc.
Funding	The funding for each project will be on a cost-sharing basis, with the sharing pattern ranging from 65% to 50% at the minimum.
Administering body	It is administered by the Ministry of Commerce and Industry, Government of India, through the Directorate General of Foreign Trade (DGFT).

NOTE-1) India aims to take goods and services export from $776 billion recorded in 2022-23 to $2 trillion by 2030, but the marketing support given under the MAI scheme, with a total allocation of less than Rs 2 billion for the current year, is highly inadequate.
2) There is an uneven contribution by states in India’s export basket. Over 70 per cent of India’s exports are from only five states, and Gujarat alone accounts for over 30 per cent.

Upsc syllabus-Indian economy & Schemes in news

Foreign Portfolio Investors (FPI) disclosure norms deadline extended

Source-This post is based on the article “FPI disclosure norms deadline extended: Why is SEBI seeking investor data?” published in “The Indian Express” on 26th January 2024.

Why in the News?

The Securities and Exchange Board of India (SEBI) has extended the timeframe for Foreign Portfolio Investors (FPIs) to reveal details about all entities with ownership, economic interest, or control in the FPI.

What are FPIs and How are they different from FDI?

Aspect	Foreign Portfolio Investors (FPIs)	Foreign Direct Investment (FDI)
Definition	FPIs are investors like mutual funds, hedge funds, pension funds, and other institutions that invest in foreign financial assets such as stocks, bonds, and securities.	FDI involves a foreign entity investing long-term in a business abroad, gaining significant control or ownership in the company.
Investment timeframe	Short to medium-term	Long term
Investment concentration	Financial assets, such as stocks and bonds.	Business or physical assets of a company.
Risk involved	Volatile	Stable

Why has SEBI asked FPIs to provide additional disclosures?

SEBI’s initiative intends to deter potential round-tripping and misuse of the FPI channel.

1) SEBI requests supplementary details from FPIs with over 50% of their Indian equity assets under management (AUM) concentrated within a single corporate group or exceeding Rs 25,000 crore in Indian equity markets.

2) Sovereign wealth funds, companies listed on specific global exchanges, public retail funds, and other regulated pooled investment vehicles are excluded from the heightened disclosure requirements.

What is round tripping?

1) Round tripping refers to money that leaves the country through various channels and makes its way back into the country often as foreign investment.

2) There are various reasons that promote round tripping. Mainly, Tax concessions allowed in the foreign country encourages individuals to park money there and then reroute it.

UPSC Syllabus- Indian Economy 

Parbati-Kalisindh-Chambal-ERCP (PKC-ERCP) Link Project

Source-This post on PKC-ERCP Link Project has been created based on the article “Rajasthan, MP, Centre sign MoU for modified river linking project” published in “The Indian Express” on 29 January 2024.

Why in the news?

Rajasthan and Madhya Pradesh (MP) signed an MoU with Ministry of Jal Shakti for implementation of the ‘Modified PKC-ERCP’ which is the second-largest project under the national perspective plan of interlinking.

About the Eastern Rajasthan Canal Project:

Aim– To divert surplus water available during rainy season in rivers in Southern Rajasthan such as Chambal and its tributaries, including Kunnu, Parvati, Kalisindh, to districts where there is scarcity of water for drinking and irrigation.
– To provide drinking water to 13 districts of Rajasthan and provide irrigation water for 2.8 lakh hectares of land through 26 different large and medium projects.
13 districts: Jhalawar, Baran, Kota, Bundi, Sawai Madhopur, Ajmer, Tonk, Jaipur, Karauli, Alwar, Bharatpur, Dausa and Dholpur.
– To meet drinking and industrial water needs of the southern and south eastern Rajasthan, for humans and livestock till the year 2051.

Need for the project

1) According to the state Water Resources Department, Rajasthan has only 1.16% of India’s surface water and 1.72% of groundwater.
2) Among the state’s water bodies, only the Chambal river basin has surplus water. Thus, the ERCP aims to create a network of water channels which will cover 23.67 % area of Rajasthan along with 41.13 % population of the state.

Significance of the project

1) A significant area of land will get irrigation facilities.
2) It will improve the groundwater table in the rural areas of the state.
3) This will positively influence the socio-economic conditions of the people.

About chambal river

Origin	1) The perennial Chambal originates at Janapav ,south of Mhow town(M.P.) 2) It rises in the old Vindhya Range and flows in northeastern direction. 3) It flows through three Indian states- Madhya Pradesh, Rajasthan and Uttar Pradesh.
Mouth	It ends in confluence of five rivers, including the Chambal, Kwari, Yamuna, Sind, Pahuj, at Pachnada near Bhareh in Uttar Pradesh state.
Main tributaries	Left-hand tributaries- the Banas and Mej Right hand tributaries- the Parbati, Kali Sindh and Shipra rivers
Important dams	Gandhi Sagar dam, Rana Pratap Sagar dam and Jawahar Sagar Dam
National park and wildlife sanctuaries	National Chambal Sanctuary for critically endangered Gharial

Kalisindh river

Origin	It rises in the Vindhya Range near Bagli in Dewas district of Madhya Pradesh.
Mouth	It joins the Chambal River at Nonera village in Kota district.

Parbati river

Origin	It rises from the Vindhya range in Sehore district Madhya Pradesh.
Mouth	Falls into Chambal River in Sawai Madhopur District.

UPSC SYLLABUS- Geography In News/Schemes programs

End-to-end encryption (E2E)

Source-This post is based on the article “What is end-to-end encryption? How does it secure information?” published in “The Hindu” on 23rd January 2024.

Why in the News?

This article explores End-to-end encryption (E2E), detailing its operational mechanisms and examining implementation challenges and complexities.

What is End-to-end encryption (E2E)?

1) Encryption serves as a method to safeguard data against unauthorized access or manipulation.

2) It functions by converting the data into a confidential code that only the designated recipient can decode. This proves beneficial in numerous scenarios, including securing online correspondence, safeguarding sensitive data, and authenticating digital identities.

3) Encryption primarily falls into two categories:

a. Symmetric: This method employs a single key for both encryption and decryption. In symmetric encryption, the key utilized to encode data is identical to the one needed for decoding it.
b. Asymmetric: Asymmetric encryption relies on a pair of keys: a public key and a private key. The public key can be distributed openly, whereas the private key must remain confidential.

4) The concept of encryption typically pertains to safeguarding stored data, whereas end-to-end encryption ensures the protection of data during its transmission between locations, particularly in scenarios involving rapid information exchange.

5) In an application equipped with end-to-end encryption (E2EE), only the individuals at each end—namely, the sender and recipient—have the ability to access exchanged messages.

What are the issues with End-to-end encryption (E2E)?

1) Compromised endpoints: If either endpoint has been compromised, an attacker may be able to see a message before it is encrypted or after it is decrypted. Attackers could also retrieve keys from compromised endpoints.

2) Too much privacy: Government and law enforcement agencies express concern that end-to-end encryption can protect people sharing illicit content because service providers are unable to provide law enforcement with access to the content.

For more information on End-to-end encryption (E2E) Click here to read

UPSC Syllabus- Science & Technology

RBI guidelines on State guarantees

Source-This post is based on the article “RBI’s guidelines on State ‘guarantees’ on borrowings ” published in “The Hindu” on 27th January 2024.

Why in the News?

A working group formed by the Reserve Bank of India (RBI) put forth recommendations to tackle issues regarding guarantees provided by State governments.

What defines a ‘state guarantee’?

1) A state guarantee is a commitment by a government entity, like a state government, to cover the repayment of a debt or fulfil an obligation if the borrower or obligated party cannot do so.

2) The recipient of the guarantee is the ‘creditor,’ the defaulting entity on whose behalf the guarantee is given is called the ‘principal debtor (State owned enterprises, cooperative institutions, urban local bodies in case of state borrowing) and the entity providing the guarantee (State governments in this context) is the ‘surety/guarantor‘

What are the recommendations of the working group?

The RBI working group has pointed out that while guarantees may seem safe during stable times, they can create significant financial risks and stress for the government during economic downturns. This could lead to unexpected cash outflows and higher debt levels. To address this issue, the following recommendations have been made:

1) Expanded Definition of Guarantee– The Working Group proposes a broader definition of ‘guarantee’ to encompass all instruments which create an obligation on the guarantor to pay. There must not be any distinction between conditional or unconditional, financial or performance guarantees while evaluating fiscal risk.

2) Government Guarantee Restrictions– RBI working group has recommended certain restrictions which are as follows-
a. Government guarantees should not be used to obtain finance through state owned entities like State owned enterprises, cooperative institutions, urban local bodies.
b. Government guarantees should not create direct liability/de-facto liability on the State.
c. Guarantees must be given only for the principal amount and normal interest component of the underlying loan.
d. Guaranteed must not be extended for external commercial borrowings, must not be extended for more than 80% of the project loan and must not be provided to private sector companies.

3) Risk Determination–
a. States should assign appropriate risk weights like high, medium or low risk before extending guarantees.
b. The states must also manage the potential stress which will emerge in case of invocation of guarantee. Hence, RBI working Group has proposed that the maximum incremental guarantees (additional guarantees) issued during a year should be capped to either 5% of Revenue Receipts or 0.5% of GSDP- which ever is lesser.

4) Disclosure of Guarantees- The RBI Working Group has proposed that the RBI may consider advising banks/NBFCs to disclose the credit extended to State-owned entities, backed by State-government guarantees. The Group has also called for a comprehensive database to capture all extended guarantees.

UPSC Syllabus- Indian Economy

Laughing Gull Spotted for the First Time in India

Source-This post is based on the article “In a first in the country, laughing gull from North America spotted at Chittari estuary in Kasaragod” published in “The Hindu” on 28th January 2024.

Why in the News?

The laughing gull, a migratory bird originating from North America, has been observed for the first time in the country at the Chittari estuary in Kasaragod district of Kerala.

What is a laughing gull?

Aspect	Details
About	1. The laughing gull (Leucophaeus atricilla) is a species of bird belonging to the family Laridae. 2. The name “laughing gull” comes from its distinctive call, which sounds like laughter.
Habitat	These birds are most commonly found along the Atlantic and Gulf coasts of North America, as well as the Caribbean and parts of Central America.
Conservation Status	IUCN: Least Concern
Characteristics	1. It is a medium-sized gull with a distinctive appearance characterized by its black head, black legs, long drooping bill white body, and long wings. 2. They take 2-3 years to reach adult plumage. 3. They often nest in colonies on beaches, islands, and marshes 4. They are known for their adaptability and opportunistic feeding habits. They feed on a variety of prey, including fish, insects, and scavenged food.

Note– This discovery elevates the total count of bird species discovered in India to 1,367. The Kasaragod district alone contributing 400 species to the state’s total count of 554.

About Chittari estuary

1) The Chittari estuary refers to a coastal area where a river meets the sea, forming a brackish water environment.

2) It is located in the Kasaragod district of Kerala, India.

3) Chittari estuary encompasses a wide variety species of birds including lesser black-backed gull, slender-billed gull, brown-headed gull, great crested, lesser crested tern, Caspian tern and others.

UPSC Syllabus- Environment (Species in News)

Acid rain

Source-This post is based on the article “Acid rain has its origins in fossil fuels” published in “The Hindu” on 29th January 2024.

Why in the News?

This article explores the origins of acid rain, its impact on the environment, and the measures implemented to mitigate its effects.

What is acid rain and how does it form?

1) Acid rain is rain with high levels of acidic substances like sulfuric acid or nitric acid.

2) It forms when emissions of sulfur dioxide (SO2) and nitrogen oxides (NOx) released from burning fossil fuels, industries, and human activities mix with water vapor and chemicals in the air.

3) These acidic pollutants combine with water droplets in the atmosphere and then fall to the ground as rain, snow, fog, or dry particles.

4) The pH of acid rain is usually between 4.2 and 4.4.

What are the effects of acid rain on environment?

1) Damage to vegetation: Acid rain leaches nutrients, weakens plants, reduces water absorption, and stunts growth. It led to reduced crop yields and plant fatalities..

2) Harm to aquatic ecosystems: Acid rain lowers the pH of water bodies. It harms aquatic life by damaging gills, reducing reproduction, and altering food availability.

3) Soil degradation: Acid rain can disrupt soil chemistry by leaching away essential nutrients like calcium and magnesium, which are crucial for plant growth. It can also release toxic metals such as aluminum from the soil, further damaging plants and aquatic life.

What efforts are taken to minimize the effects of acid rain?

1) Coal power plants have reduced the sulfur dioxide (SO2) content in their atmospheric emissions by more than 90% using flue-gas desulfurization.

2) Governments across the globe are also working together to reduce acid rain. For example, in Asia, the Acid Deposition Monitoring Network in East Asia (EANET) operates to address this issue.

What is Acid Deposition Monitoring Network in East Asia (EANET)?

Aspect	Details
About	It is an intergovernmental initiative among East Asian countries to monitor and deal with acid deposition, which includes acid rain.
Established in	2001
Aim	To collect data on the deposition of acid substances, such as sulfur dioxide and nitrogen oxides, in the atmosphere and their subsequent impact on the environment, particularly ecosystems and water bodies.
Secretariat	UN Environment Programme Asia Pacific
Network center	The Asia Center for Air Pollution Research (ACAP) in Japan
Members	Currently, 13 East Asian countries are involved in EANET

UPSC Syllabus- Environment/Science & Technology

Pandemic treaty and disease X

Source-This post on pandemic treaty has been created based on the article “The pandemic treaty can help the world brace for Disease X: WHO Director-General” published in “Down to Earth” on 24 January 2024.

Why in the news?

The World Health Organization (WHO) is urging its member nations to sign a pandemic treaty to strengthen global preparedness for future health crises.

What is Pandemic treaty?

Origin-In March 2021, a group of world leaders announced an initiative for a new treaty on pandemic preparedness and response.
This initiative was taken to the World Health Organization (WHO) and will be negotiated, drafted, and debated by a newly-established Intergovernmental Negotiation Body.
Objective-
1) to foster an all government and all society approach, strengthening national, regional and global capacities and resilience to future pandemics.
2) to enhance international co-operation in data-sharing, research and local, regional and global production and distribution of medical and public health counter-measures such as vaccines, medicines, diagnostics and personal protective equipment.
3) The deadline for this agreement is set for the 77th World Health Assembly in May 2024.

What are its principal components?

1) Increased global cooperation
2) Strengthening of health systems
3) Investment in research and development
4) Transparency in information sharing
5) Establishment of a Pathogen Access and Benefit-Sharing System (PABS) under the WHO
6) Address gender disparities in the healthcare workforce.

About disease X

1) It is a hypothetical pathogen or threat that may cause a major pandemic in future.
2) It could be a new agent, a virus, a bacterium, or a fungus without any known treatment.
3) The disease could be any of the 25 families of viruses that have the capability to cause illness in people.
4) Disease X was included in the WHO’s updated Blueprint list of diseases back in 2018.
5)Disease X could be 20 times more deadly than SARS-Covid virus that caused pandemic recently.
6) It is an illness which is currently unknown but could pose a serious microbial threat to humans in the future.

WHO’s initiatives to prepare for future pandemic

1)  World Bank’s pandemic fund-This get funds from multinational development banks, G20 countries, WHO, and civil society to strengthen health systems in low- and middle-income countries.
2) Financial Intermediary Fund for Pandemic Preparedness and Response-This was established in 2022 to cover early warning surveillance systems for zoonotic diseases, laboratories, and emergency communication.
3) mRNA technology transfer hub– It was created in June 2021 to increase mRNA vaccine production locally in developing countries.
4) WHO Hub for Pandemic and Epidemic Intelligence-The hub is developing a research and development agenda that bridges the gap between universities and public health institutions.
5) WHO BioHub System-This enables the sharing of viruses and pathogens globally.

Note-Zoonotic disease-These are infections that spread between people and animals. These infections are caused by germs, such as viruses, bacteria, parasites, and fungi

UPSC SYLLABUS-Science&technology.

Sapinda Marriage

Source-This post on sapinda marriage has been created based on the article” What are incestuous ‘sapinda’ marriages, and why has Delhi High Court reaffirmed the ban on them? published in” The Indian Express” on 29 January 2024.

Why in the news?

The Delhi High Court has recently rejected a challenge to the constitutionality of Section 5(v) of the Hindu Marriage Act, 1955 (HMA), which prohibits marriage between Hindus if they are “sapindas” of each other.

Background-

In 2007, a sapinda marriage was declared void, prompting the woman to appeal the ruling in the Delhi HC, which was dismissed in 2023. She then challenged the constitutional validity of Section 5(v) of the Hindu Marriage Act, 1955 (HMA), arguing it violates the Right to equality under Article 14. The women argued that sapinda marriages are common even without proof of custom also.

However, the Delhi HC rejected her arguments. The court emphasised the need for stringent proof of an established custom and upheld the regulation of partner choice in marriage.

What is a sapinda marriage?

A sapinda marriage is one between individuals who are closely related to each other. As per section 3 of Hindu Marriage Act, “Two persons are said to be sapindas of each other if one is a lineal ascendant (it means son, grandson) of the other, or if they have a common lineal ascendant who is within the limits of sapinda relationship.”

Sapinda marriage is prohibited within certain generations on both the mother’s and father’s sides.
Mother’s Side: Marriage is forbidden within three generations. Sibling (first generation), their parents (second generation), their grandparents (third generation)
Father’s Side: It extends to five generations. This prohibition would extend up to their grandparents’ grandparent.

Prohibition on Sapinda marriage-
Section 5(v) of the Hindu Marriage Act prohibits sapinda marriages unless there is an established custom that permits the marriage. This means that if there is no established custom, marriage is considered invalid.

Exception to the rule of Sapinda Marriage– When the customs of each individual permits sapinda marriages.
Custom as defined by the Hindu Marriage Act-The definition of the word “custom” is provided in Section 3(a) of the HMA. As per the law, a custom must be continuously and uniformly observed for a long period to gain legitimacy among Hindu.
As per the court, customs should not be unreasonable or opposed to public policy. In the case of a rule that is applicable only to a certain family, the rule should not have been “discontinued by that family”.

Status of sapinda marriage in other countries.

France	Abolished the crime of incest under the Penal Code of 1810, allowing marriages between consenting adults.
Portugal	It does not criminalise incest.
Italy	Incest is only considered a crime if it causes a “public scandal.”
Belgium	Adopted similar laws under the influence of the French code.
Ireland	Laws on incest have not been updated post the recognition of same-sex marriages in 2015.
USA	Incestuous marriages are banned in all states except New Jersey and Rhode Island.

Note-Incestuous: An incestuous relationship is one involving sexual intercourse between two members of the same family.

Upsc Syllabus-Indian Society/Art and Culture in News