Daily Prelims Notes 13 September 2023

Daily Prelims Notes

13 September 2023

Table Of Contents

1. RBI unveils revised investment portfolio guidelines for banks
2. Gresham’s law in action in Sri Lanka
3. GDP growth outlook and consumer sentiments down while Inflation up
4. Analysing India’s FDI flows
5. Russian sellers said to stop fertiliser discounts to India
6. ‘Ayushman Bhava’ campaign to be introduced during ‘Seva Pakhwada’
7. Floodplain loss: Basins of Irrawaddy, Tapi, Indus, Cauvery rivers flowing through India altered most due to human activities
8. UN report outlines how developing, developed countries can reduce emissions from constructions
9. Is the genetically modified, nutrient-rich Golden Rice as safe as promised?
10. Libya floods: Entire neighborhoods dragged into the sea
11. Where is Nechiphu tunnel in India? Why is it important?
12. Spotting black holes
13. PM Modi and Saudi Crown Prince MBS chair SPC meeting: What is the Strategic Partnership Council
14. Transport Minister Nitin Gadkari mentions tax on diesel vehicles: Why is diesel under pressure?
15. World can emulate India’s protection of plant varieties and farmers rights law’
16. Sanatan Dharma
17. Nataraja sculpture at Bharat Mandapam during G20 Summit in Delhi
18. Odisha’s Timeless Wonder – Konark Wheel replica at Bharat Mandapam during G20 summit

1. RBI unveils revised investment portfolio guidelines for banks

Subject: Economy

Section: Monetary Policy

Context: RBI unveils revised investment portfolio guidelines for banks.

Key Points:

•  Reserve Bank of India revised its guidelines on categorizing the investments by banks, to align them with global standards.
• The change in norms follow an RBI discussion paper issued in January 2022.

Major changes:

• RBI has removed the 90-day ceiling on holding period of securities under the Held For Trading (HFT) category.
• Similarly, RBI removed the ceiling on the held-to-maturity (HTM) in lenders’ investment portfolios.
• RBI also introduced a new category of investment, fair value through profit and loss (FVTPL) account. The existing HFT category will now be part of FVTPL category, according to the revised guidelines.
• RBI has also barred instruments with loss-absorbing features, such as those qualifying for additional tier 1 or tier 2 capital regulations, equity and preference shares from being held under AFS or HTM categories.

Impact of changes:

• According to bankers, this move will result in banks classifying illiquid bonds and state development loans under HFT but this was not the case previously as they were not sure if they could sell these securities within 90 days of acquiring.
• The directions are expected to enhance the quality of the banks’ financial reporting, improve disclosures, provide a fillip to corporate bond market, facilitate the use of derivatives for hedging, besides strengthening the overall risk management framework of banks.

New framework:

• The investment portfolio of banks will now be divided into three categories: FVTPL, HTM and available for sale (AFS).
•  HFT category was for debt securities purchased by banks with the intent of selling them within a short period.
• Under FVTPL, debt instruments are measured at fair value through a profit and loss account.
• Banks will have to hold the investments in their FVTPL books which will require more regular accounting work.

2. Gresham’s law in action in Sri Lanka

Subject :Economy

Section: External Sector

Context: The economic theory of Grisham’s law is being seen in action after Sri Lanka fixed exchange rate in dollar.

Key Points:

• Gresham’s law refers to the dictum that “bad money drives out good.” Gresham’s law comes into play when the exchange rate between two moneys or currencies is fixed by the government at a certain ratio that is different from the market exchange rate.
• The law, named after English financier Thomas Gresham, came into play most recently during the economic crisis in Sri Lanka last year, during which the Central Bank of Sri Lanka fixed the exchange rate between the Sri Lankan rupee and the U.S. dollar.

What happens when exchange rate is fixed at a rate above the market exchange rate?

• Such price fixing causes the undervalued currency — that is, the currency whose price is fixed at a level below the market rate — to go out of circulation.
•  The overvalued currency, on the other hand, remains in circulation but it does not find enough buyers.
• When the price of a currency is fixed by the government at a level below the market exchange rate, the currency’s supply drops while demand for the currency rises. Thus a price cap can lead to a currency shortage with demand for the currency outpacing supply.
• The law applies not just to paper currencies but also to commodity currencies and other goods.
• In fact, whenever the price of any commodity — whether it is used as money or not — is fixed arbitrarily such that it becomes undervalued when compared to the market exchange rate, this causes the commodity to disappear from the formal market.
• The only way to get hold of an undervalued commodity in such cases would be through the black market. Sometimes, countries can even witness the outflow of certain goods through their borders when they are forcibly undervalued by governments.
• They may even melt commodity money to derive pure gold and silver that they can sell at the market price, which is higher than the rate fixed by the government

What happened in Sri Lanka?

• The law came into play most recently during the economic crisis in Sri Lanka last year, during which the Sri Lankan central bank fixed the exchange rate between the Sri Lankan rupee and the U.S. dollar.
• The Central Bank of Sri Lanka, at a certain point, mandated that the price of the U.S. dollar in terms of the Sri Lankan rupee should not rise beyond 200 rupees per dollar.
• In effect, people were banned from paying more than 200 Sri Lankan rupees for a dollar, thus causing the rupee to be overvalued and the U.S. dollar to be undervalued when compared to the market exchange rate.
• This caused the supply of dollars in the market to fall and the U.S. dollar to be gradually dla1riven out of the formal foreign exchange market.
• People who wanted U.S. dollars to purchase foreign goods then had to purchase dollars from the black market by paying far more than 200 Sri Lankan rupees for each U.S. dollar

Conditions for the Grisham’s law to work:

1. Gresham’s law, however, holds true only when the exchange rate between currencies is fixed under law by the government and
2. the law is implemented effectively by authorities.

Why implementation of the rate is necessary?

• In the absence of any government decree fixing the exchange rate between currencies, it is good money that eventually drives bad money out of the market and not the other way round.
• When the exchange rate between currencies is not fixed and people have the choice to freely choose between currencies, people gradually stop using currencies that they consider to be of poor quality and adopt currencies that are found to be of better quality.
• This phenomenon wherein “good money drives out bad” is called Thiers’ law (named after French politician Adolphe Thiers) and it is seen as a complement to Gresham’s law.
• The rise of private cryptocurrencies in recent years has been cited by many analysts as an example of good money issued by private money producers driving out bad money issued by governments

3. GDP growth outlook and consumer sentiments down while Inflation up

Subject :Economy

Section: Inflation

Context: Centre for Monitoring Indian Economy’s (CMIE) Economic Outlook, reports dip in consumer sentiments, along with elevated inflation and low growth outlook.

Key Points:

• Consumer sentiment:
  • According to the CMIE’s Economic Outlook, consumer sentiments fell by 1.5 per cent in August 2023.
  • With these months being start annual festive it is a concerning development.
  •   Consumer sentiments were rising every month since January 2023. The average monthly growth in consumer sentiments in India during the January-July months of 2023 was 2.6 per cent.
  •  Consumer sentiments can have a real impact on the economy and Indian businesses who are gearing up for making the best sales of the year in the forthcoming festive season.
  • That’s because one of the key constituents of CMIE’s consumer sentiments index is the consumers’ intention to buy consumer durables.
  • The sentiment for rural consumers and it has been negative for the past three months. That shows that sentiments are significantly worse in rural India.
  • The proportion of households that said that they expect their household income to rise a year into the future fell from 25.6 per cent in July 2023 to 23.7 per cent in August
• Inflation projection:
  • India’s retail inflation eased slightly to 6.83% in August, from the 15-month high of 7.44% in July, but the rise in food prices remained elevated at around 10% and rural consumers continued to face over 7% inflation.
• Growth outlook:
  •  India’s GDP growth outlook India’s potential GDP growth rate has steadily come down from around 8% just before the Global Financial Crisis of 2008-09 to just 6% before the Covid pandemic.
  • The bump in India’s GDP growth rates immediately after the pandemic hit year of 2020-21 is, to a great extent, illusory because these high rates are coming because of a lower base.

4. Analysing India’s FDI flows

Subject :Economy

Section: External Sector

Key Points:

• A relook at India’s FDI policy is necessary given the skewed composition, regional disparity and outdated regulatory framework.
• In FY23, India received $46.03 billion in FDI equity inflows, a decrease from the $58.77 billion recorded in FY22

Benefits:

• FDI remains vital for strengthening domestic industry, stimulating growth, and enhancing global competitiveness.

Concerns:

• Geopolitical: As India’s international ties deepen, it must carefully consider the potential risks of providing foreign investors unfettered access to critical sectors.
• Sectoral imbalance: Sector-specific analysis of DPIIT data highlights a notable trend: despite the government’s Make in India initiative, more than 90 per cent of investment has funnelled into non-manufacturing sectors, with the manufacturing sector predominantly receiving non-greenfield investments.

Regional imbalance:

Sectoral imbalance:

• Within sectors, there’s a heterogeneous composition.
•  In 2022, the services sector saw the lion’s share of investment, with the financial sector leading, while research and development received a mere 0.2 per cent (the lowest).
• Similarly, the computer software and hardware sector attracted a significant portion of inflows, constituting nearly 31 per cent of the total.
• However, the bulk of investments went into computer software (0.2 per cent in hardware), largely due to ICT industry acquisitions.

Geopolitical:

• These sectors deal with sensitive and critical data, including personal and geographical information, making them data-rich and vulnerable.
• Dependence on foreign solutions increases the risk of exploitation, underscoring the need for proactive security measures.

Regional disparities:

• Regional disparity in FDI has widened over the years, with FDI-attracting States maintaining their dominance while others miss out on its positive spillover effects.
• In 2023, the top 10 States attracting FDI include Maharashtra (28.6 per cent), Karnataka (23.6 per cent), Gujarat (16.9 per cent), Delhi (13.3 per cent), Tamil Nadu (4.5 per cent), Haryana (4.15 per cent), Telangana (2.5 per cent), Jharkhand (1.4 per cent), Rajasthan (1.1 per cent), and West Bengal (0.7 per cent), leaving the remaining 22 States sharing a mere 2.4 per cent of FDI.

5. Russian sellers said to stop fertiliser discounts to India

Subject :Economy

Section: External Sector

Context:

• Russian companies have ceased offering fertilizers such as di-ammonium phosphate (DAP) to India at discounted prices due to tightening global supplies after becoming the biggest suppliers to the country last year.

Details:

• India’s fertilizer imports from Russia surged 246% to a record 4.35 million metric tons in the 2022/23 as suppliers give discounts (10%) to the global market price for DAP, urea and NPK fertilizers.
• Discounts provided by Russia led to decline in import of fertilizers from other countries like China, Egypt, Jordan, and the United Arab Emirates.
• Current urea price: approximately $300 per ton on a CFR basis.
• Russia is the world’s biggest exporter of fertilizer, followed by Canada, China, Belarus, and the United States.
• Brazil is the top importer of fertilizers.
• India imports most of its Fertilizer from China, United Arab Emirates and Spain and is the 3rd largest importer of Fertilizer in the World.

Impact of the decision:

• Increased import cost
• Increased subsidy burden

Di-Ammonium Phosphate (DAP):

• Urea and DAP are two largely consumed fertilizers in the country.
• Diammonium phosphate (DAP) is the world’s most widely used phosphorus fertilizer.
• DAP fertilizer is an excellent source of Phosphorus and nitrogen (N) for plant nutrition.
• It’s highly soluble and thus dissolves quickly in soil to release plant-available phosphate and ammonium.
• A notable property of DAP is the alkaline pH that develops around the dissolving granule.
• Being a basic nutrient for Rabi crops, the DAP fertiliser has to be sprinkled at the time of sowing crops like mustard and wheat.
• Any delay in its supply could adversely impact the sowing of crops.

For further details of fertilizers: https://optimizeias.com/imbalance-in-fertilizer-use/

6. ‘Ayushman Bhava’ campaign to be introduced during ‘Seva Pakhwada’

Subject :Scheme

Section: Health

Context:

• A campaign to ensure optimum delivery of health schemes to every intended beneficiary, including those in the last mile, will be launched by the President.

Ayushman Bhava campaign:

• Introduced during the ‘Seva Pakhwada’ by the Prime Minister of India.
• Launched on: 13-Sep-2023
• Ayushman Bhava is an umbrella campaign comprising:
  • Ayushman Apke Dwar 3.0 which is aimed at creation and distribution of Ayushman cards to all remaining eligible beneficiaries;
  • Ayushman Mela as part of which weekly health melas will be held at the level of AB-HWCs and Community Health Centres (CHCs) and
  • Ayushman Sabha, a village/ward level sabha to be held to enhance awareness about various health care schemes and services.
• The campaign will eventually ensure gram/nagar panchayat to attain the status of ‘Ayushman Gram Panchayat’ or ‘Ayushman Ward’ with saturation of selected health indicators.

About Seva Pakhwada:

• Ayushman Bharat cards will be distributed.
• An online organ donation pledge registry will be initiated to register the pledges of willing citizens all over the country.
• all blood banks will organize at least one blood donation camp.
• Cleanliness drives at all public health facilities at primary, secondary and tertiary health care levels.

Ayushman Bharat scheme:

• Ayushman Bharat is National Health Protection Scheme, which will cover over 10 crore poor and vulnerable families (approximately 50 crore beneficiaries) providing coverage upto 5 lakh rupees per family per year for secondary and tertiary care hospitalization.
• Ayushman Bharat – National Health Protection Mission will subsume the on-going centrally sponsored schemes – RashtriyaSwasthya Bima Yojana (RSBY) and the Senior Citizen Health Insurance Scheme (SCHIS).
• Salient features:
  • A defined benefit cover of Rs. 5 lakh per family per year.
  • Benefits of the scheme are portable across the country and a beneficiary covered under the scheme will be allowed to take cashless benefits from any public/private empanelled hospitals across the country.
  • Entitlement is decided on the basis of deprivation criteria in the SECC database.
  • To control costs, the payments for treatment will be done on a package rate (to be defined by the Government in advance) basis.
  • One of the core principles is cooperative federalism and flexibility to states.
  • For giving policy directions and fostering coordination between Centre and States, it is proposed to set up Ayushman Bharat National Health Protection Mission Council (AB-NHPMC) at apex level Chaired by Union Health and Family Welfare Minister.
  • States would need to have a State Health Agency (SHA) to implement the scheme.
  • To ensure that the funds reach SHA on time, the transfer of funds from the Central Government to State Health Agencies may be done through an escrow account directly.
  • In partnership with NITI Aayog, a robust, modular, scalable and interoperable IT platform will be made operational which will entail a paperless, cashless transaction.

7. Floodplain loss: Basins of Irrawaddy, Tapi, Indus, Cauvery rivers flowing through India altered most due to human activities

Subject :Geography

Section: Physical geography

Context:

• A group of researchers, for the first time, has “developed the first publicly available global dataset that quantifies human alterations in 15 million square kilometers of floodplains along 520 major river basins during the recent 27 years (1992-2019)”.

About the Report:

• Report title: Human alterations of the global floodplains 1992–2019
• A floodplain, according to the Federal Emergency Management Agency, is “any land area susceptible to being inundated by floodwaters from any source”.
• The study explained how it quantified human alteration by taking stock of three geospatial datasets for the said time period (1992-2019).
  • First, they identified the global extent of floodplain, from which they identified how land use change has unfolded of the corresponding time period and finally, they used river basin boundaries to quantify the process for the rivers assed in the study.

Report findings:

• Over 460,000 square kilometers of floodplain area was lost to agriculture, while another 140,000 square kilometers was redeveloped to new areas over the existing floodplain.
• Continent-wise, Asia lost the biggest area of floodplains followed by South America and Africa.
• In Amazon and Yangtze river basins the agricultural expansion is proportional to the reduction in the area of forests.
• Highest floodplain loss in the Indian subcontinent is due to human activities.
• Irrawaddy river witnessed the highest floodplain loss.
• In India, Tapi river basin recorded the highest alteration with over 3 percent of the floodplain area lost due to human activities, followed by Indus (3.2 per cent) and Cauvery (2.7 per cent).

8. UN report outlines how developing, developed countries can reduce emissions from constructions

Subject :Geography

Section: Physical geography

Context:

• Developing countries should switch from unsustainable building practices to using alternative low-carbon building materials to reduce greenhouse gas emissions, a new UN report highlighted.

About the report:

• Report title: Building Materials and The Climate: Constructing A New Future
• Released by: UNEP and Yale Center for Ecosystems and Architecture.

Report findings:

• About 37% of the Greenhouse Gas emissions are traced to the build environment sector: buildings, the distribution systems that supply water and electricity, and the roads, bridges, and transportation systems.
• Processing of cement, the binding agent in concrete, contributes 7 per cent of global carbon emissions.
• The report recommends “Avoid-Shift-Improve” strategies to reduce emissions.
  • “Avoiding” emissions through circularity to ensure waste is eliminated while extending a building’s life,
  • “Shifting” to sustainable materials, and
  • “Improving” the production of conventional materials such as concrete, steel, aluminum, plastics, glass and bricks.
• Embodied carbon is the amount of carbon dioxide across the life cycle of the built environment process.

Alternative materials and processes in build environment sector to reduce the Greenhouse Gas emissions:

• Increasing the lifetime of buildings to reduce the aggregate embodied carbon.
• Switch towards properly managed bio-based materials.
• Mass timber has emerged as an attractive alternative to carbon-intensive concrete and steel.
• Processed bamboo or engineered bamboo.
• Electrifying and decarbonising the energy that is supplied to the production and maintenance of materials, buildings and urban infrastructure.
• Reducing the clinker (produced from limestone and chalk)-to-cement ratio and increasing the share of cement alternatives.
• Carbon capture and utilization for concrete production (CCU concrete) technology to reduce carbon emission. CCU concrete can remove 0.1 to 1.4 gigatonnes of CO2 by 2050.
• Avoiding raw material extraction by promoting steel reuse and producing steel from scrap.
• Using renewable energy for aluminum production.

9. Is the genetically modified, nutrient-rich Golden Rice as safe as promised?

Subject :Geography

Section: Physical geography

Context:

• In April, the Philippines’ Supreme Court heeded farmers’ and activists’ calls to look into the safety promise of Golden Rice, a genetically modified grain created to tackle the vitamin A deficiency that impacts millions, over concerns about its potential impact to rice biodiversity, farmer livelihoods and human health.

Details:

• International Day of Action Against Golden Rice– 8 august (started in 2013).
• The Department of Agriculture’s Philippine Rice Research Institute (DA–PhilRice) and IRRI (HQ- Manila, Philippines) is spearheading Golden Rice’s development and deployment in the Philippines.
• MASIPAG, a network of scientists and farmers who led a petition to the Philippine Supreme Court against the commercial release of Golden Rice, known here as Malusog Rice.
• As legal debates over its safety promise continue, the country’s Golden Rice rollout is on track and officials aim on cultivating 500,000 hectares (1.24 million acres) of the crop by 2028.

Golden rice or Malusog rice:

• Introduced in 2004, the Golden Rice technology involves adding two genes from maize and a common soil bacterium into white rice, with its developers later donating the technology to combat Vitamin A deficiency (VAD) in less-industrialized nations like the Philippines.
• Syngenta maintains full commercial rights over Golden Rice, including all technological enhancements.
• This rice variety’s distinct yellow-orange color comes from added beta-carotene, with turns into vitamin A in the body, to tackle the vitamin A deficiency (VAD) that impacts millions of Filipino children.
  • VAD is common in the Global South, but rare in the Global North, according to the World Health Organization.
  • VAD includes: Diarrheal diseases, irreversible blindness, other sensory losses, and premature death.

Concern against golden rice cultivation:

• Potential harm to rice biodiversity and human health.
• Commercial cultivation is done without any real scientific basis.
• It serves corporate interests, neglects peasants, and poses a risk of genetic contamination to local rice varieties, ultimately endangering local rice biodiversity.
• May increase the use of herbicides like glyphosate which can further contaminate the water.
• Contamination of local rice varieties by genetically modified Golden Rice.

Regulatory guidelines for GMOs:

• Precautionary Principles are enshrined in the Cartagena Protocol on Biosafety, and countries must ensure adherence to these principles before introducing genetically modified crops.
• The WHO has not yet issued guidance on the consumption of biofortified foods.

Alternative to golden rice:

• There are alternative crops with higher beta-carotene content than Malusog Rice and should be used instead to tackle VAD.
• These alternative crops are: tomatoes, squash, malunggay, carrots, and sweet potatoes, various green and leafy vegetables like saluyot (jute mallow), alugbati (Malabar spinach), gabi (taro), and kangkong (water spinach).

For details of Cartagena Protocol on Biosafety: https://optimizeias.com/montreal-conference-on-biodiversity/

10. Libya floods: Entire neighborhoods dragged into the sea

Subject: Geography

Section: Places in news

In the news:

• A devastating flood in eastern Libya has killed at least 5,000 people in the aftermath of storm Daniel.

Details:

• Affected areas: Derna (most affected), eastern city of Benghazi, cities of Soussa, Al-Marj and Misrata.
• Probable cause of the flood: Heavy rain and storm Denial led to the collapse of two dams and four bridges that unleashed a torrent of water down River Wadi Derna.
• Storm Daniel is a storm of the Mediterranean sea and affected Greece and Libya the most. It is heading towards Egypt.

Derna city:

• Derna, about 250 km east of Benghazi along the coast, is surrounded by the nearby hills of the fertile Jabal Akhdar region.
• The city was once where militants from the Islamic State group built a presence in Libya.

Libya:

• Libya is a country in the Maghreb region of North Africa.
• It is bordered by the Mediterranean Sea to the north, Egypt to the east, Sudan to the southeast, Chad to the south,Niger to the southwest, Algeria to the west, and Tunisia to the northwest.
• Libya has some of the largest oil reserves in the world. It is currently ranked 10th highest globally and 1st in Africa. Most of Libya’s GDP relies on the export of oil
• Major minerals in Libya include: Oil, natural gas, gypsum, iron, potassium, magnesium, phosphate silica, and limestone among others.
• Iron ore deposits are present in the Wadi ash Shati region of Libya.

11. Where is Nechiphu tunnel in India? Why is it important?

Subject : Geography

Section: Places in news

Context:

• A newly-built 500-metre tunnel in Arunachal Pradesh will provide all-weather connectivity to the strategic Tawang region along the Line of Actual Control.

Defense Projects:

• The tunnel is one of the 90 projects taken up by Border Road Organisation at a cost of ₹ 2,941 crore.
  • Of these 90 projects, 36 are in Arunachal Pradesh; 26 in Ladakh; 11 in Jammu & Kashmir; 5 in Mizoram; 3 in Himachal Pradesh;2 each in Sikkim, Uttarakhand & West Bengal and 1 each in Nagaland, Rajasthan and Andaman & Nicobar Islands.
  • 90 projects include: 22 roads, 63 bridges, the Nechiphu tunnel, two airfields, and two helipads.

Nechiphu tunnel:

• Located in: West Kameng district of Arunachal Pradesh.
• The tunnel is constructed at a height of 5,700 feet on the Balipara-Charduar-Tawang road.
• The tunnel is fitted with the modern electromechanical systems and firefighting equipment, automatic lighting and monitoring systems.
• Benefits:
  • All-weather communication will be provided by the Sela Tunnel and the Nechiphu Tunnel.
  • It will benefit the armed forces, apart from tourists.
  • Lessen carbon emissions in the area with fragile ecosystems.

Nyoma airfield:

• The Defence minister laid the foundation stone of Nyoma Airfield in Eastern Ladakh which would be developed at a cost of approximately ₹200 crore.
• It will boost the air infrastructure in Ladakh and augment IAF’s capability along the Northern border with China.

Shunkun la Tunnel:

• Shinkun La Tunnel, which is under construction, will become the world’s highest tunnel at an altitude of 15,855 feet.
• The tunnel will connect Lahaul-Spiti in Himachal to the Zaskar Valley in Ladakh and provide all weather connectivity.

12. Spotting black holes

Subject :Science and technology

Section: Space technology

Black Holes

• Black holes are mysterious cosmic objects, often misunderstood. They are not actual holes but incredibly dense concentrations of matter.
• It is typically formed during supernova explosions.
• A black hole’s event horizon, just beneath its surface, has such intense gravity that nothing, not even light, can escape it.
• This event horizon contains all the matter that makes up the black hole.

Finding Black Holes

• Black holes are invisible to telescopes because they do not emit or reflect light. Scientists detect and study them through various means:
  • Accretion disks: Rings of gas and dust around black holes emit light, including X-rays.
  • Stellar orbits: Intense gravity from supermassive black holes causes stars to orbit them uniquely.
  • Gravitational waves: Massive objects create ripples in space-time when they accelerate, which scientists can detect.
  • Gravitational lensing: Black holes can bend and distort light from distant objects, revealing their presence.

Determining Minimum Mass

• By studying the orbit of the visible star, astronomers can determine the minimum mass of the black hole.
• An example is the X-ray source in the constellation Cygnus, known as Cygnus X1, which is estimated to be about six times the mass of the Sun.
• This estimation rules out the possibility of it being a dwarf star or a neutron star, confirming that it is a black hole.

Key Black Hole Facts

• Closest: The nearest known black hole, 1A 06200-00, is 3,000 light-years away.
• Farthest: In the galaxy, QSO J0313-1806, is about 13 billion light-years away.
• Biggest: TON 618, is 66 billion times the mass of the Sun.
• Smallest: The lightest-known black hole is only 3.8 times the Sun’s mass and is paired with a star.
• Spaghettification: The process by which (in some theories) an object would be stretched and ripped apart by gravitational forces on falling into a black hole.
  • It’s squeezed horizontally and stretched vertically, resembling a noodle.
• Spin: All black holes spin, with the fastest-known, GRS 1915+105, rotating over 1,000 times per second.
• Particle accelerators: Monster black holes at galaxy centers can launch particles to nearly light speed.
• Not so rare: Most Milky Way-sized galaxies have supermassive black holes at their centers, such as Sagittarius A*, which is 4 million times the mass of the Sun.

13. PM Modi and Saudi Crown Prince MBS chair SPC meeting: What is the Strategic Partnership Council

Subject :International Relations

Section: Msc

Introduction:

Prime Minister Narendra Modi and Saudi Arabia’s Crown Prince Mohammed bin Salman Al Saud recently held extensive talks and co-chaired the first summit-level meeting of the India-Saudi Arabia Strategic Partnership Council (SPC). 

India-Saudi Arabia Strategic Partnership Council (SPC)

• Establishment: The SPC was formed during PM Modi’s October 2019 visit to Saudi Arabia, signifying a critical diplomatic step.
• Objective: It aims to “establish a high-level council to steer the Indo-Saudi relationship“, focusing on cooperation across sectors, including trade, investment, security, and defense.
• Structure: The SPC comprises two main pillars:
  • Committee on Political, Security, Social, and Cultural Cooperation
  • Committee on Economy and Investments
• Functional Levels: The SPC operates at four functional levels:
  • Summit level (Prime Minister & Crown Prince)
  • Ministerial-level
  • Senior Officials’ Meetings
  • Joint Working Groups (JWGs)
• JWGs and Sub-committees: Each sub-committee has four JWGs:
  • JWGs under the Political Committee:
    • Political & Consular
    • Legal & Security
    • Social & Cultural
    • Joint Committee on Defense Cooperation
  • Under Economic Committee:
    • Agriculture & Food Security
    • Energy
    • Technology & Information Technology
    • Industry and Infrastructure
• Saudi Partnerships: Saudi Arabia has similar partnership councils with other nations, including the UK, France, and China.

Outcomes of Talks on Monday

• Expedited West Coast Refinery Project: India and Saudi Arabia agreed to expedite the $50-billion West Coast refinery project.
• Comprehensive Energy Partnership: Both nations decided to transform their hydrocarbon relationship into a comprehensive energy partnership.
• Pact Signings: Eight pacts were signed during the meeting, encompassing diverse areas, including digitization and investment.
• Identified Areas for Cooperation: Key areas for intensified cooperation were identified, such as energy, defense, semiconductor, and space. Additionally, sectors like education, technology, transportation, healthcare, tourism, and culture were discussed as potential areas of cooperation.
• Infrastructure and Technology: Discussions explored cooperation possibilities in infrastructure and technology domains, including power grids, gas grids, optical networks, and fiber networks.
• Neither 1 nor 2 is correct. The establishment of the SPC did not take place during the visit of the Saudi Crown Prince to India during the G20 Summit. The SPC was actually established during Prime Minister Narendra Modi’s visit to Saudi Arabia in October 2019, not during the G20 Summit.
• India is not the first country to have such a partnership with Saudi Arabia. Saudi Arabia had formed similar strategic partnerships with other countries before India. For example, the United Kingdom (UK), France, and China had previously established such partnerships with Saudi Arabia. So, statement 2 is also incorrect.

14. Transport Minister Nitin Gadkari mentions tax on diesel vehicles: Why is diesel under pressure?

Subject : Science and technology

Section: Msc

Introduction

• On September 12, Road Transport Minister Nitin Gadkari suggested the possibility of imposing an additional 10% GST on diesel-run vehicles as a “pollution tax” if the use of such vehicles continues.
• He later clarified that there was no active proposal for this tax at the moment.

Policy Pushback Against Diesel

• Gadkari’s statement aligns with the broader policy pushback against diesel.
• A committee appointed by the Ministry of Petroleum and Natural Gas had recommended banning diesel four-wheel vehicles in cities with over 1 million population by 2027.

Existing Taxation

• The government already imposes a 28% tax on diesel cars, along with additional cess based on engine capacity, resulting in a total tax of nearly 50%.

Why There’s a Pushback Against Diesel

• The government aims to reduce greenhouse gas emissions and generate 40% of India’s electricity from renewables as part of its net-zero emissions goal by 2070.
• Diesel accounts for around 40% of India’s petroleum product consumption, with 87% of diesel sales going to the transport sector, primarily trucks and buses.
• Three states—Uttar Pradesh, Maharashtra, and Haryana—account for almost 40% of diesel sales in India.

Concerns About Diesel-Run Cars

• Diesel engines emit higher levels of oxides of nitrogen (NOx) due to their higher compression ratios compared to petrol engines, contributing to a negative perception of diesel.
• Car manufacturers decided to exit the diesel segment due to the rollout of stricter BS-VI emission norms in 2020 and the high costs associated with upgrading diesel engines to meet these standards.

Why Some Individuals Still Prefer Diesel over Petrol

• Diesel engines offer superior fuel efficiency and greater torque, making them preferable for heavy vehicles and reducing the risk of stalling during haulage.
• While historically cheaper, diesel’s price advantage over petrol has diminished since fuel price decontrol in 2014, diminishing its attractiveness to buyers.

15. World can emulate India’s protection of plant varieties and farmers rights law’

Subject :Science and technology

Section: IPR

Protection of Plant Varieties and Farmers’ Rights (PPV&FR) Act, 2001

• Enacted by India in 2001 adopting sui generis system.
• It is in conformity with International Union for the Protection of New Varieties of Plants (UPOV), 1978.
• The aim of the act is the establishment of an effective system for the protection of plant varieties, the rights of farmers and plant breeders and to encourage the development of new varieties of plant.
• The act also establishes Protection of Plant Varieties and Farmers’ Rights Authority under the Ministry of Agriculture and Farmers Welfare.
• The major function of Authority includes
  • Registration of new plant varieties;
  • Documentation of varieties registered;
  • Preservation of plant genetic resource;
  • Maintenance of the National Register of Plant Varieties and
  • Maintenance of National Gene Bank (for conserving seeds of registered varieties).
• The legislation recognizes the contributions of both commercial plant breeders and farmers in plant breeding activity and also provides to implement TRIPs in a way that supports the specific socio-economic interests of all the stakeholders including private, public sectors and research institutions, as well as resource-constrained farmers.

Rights under the Act

Breeders’ Rights: Breeders (Seed Producers) will have exclusive rights to produce, sell, market, distribute, import or export the protected variety.

• A breeder can exercise for civil remedy in case of infringement of rights

Researchers’ Rights: Researcher can use any of the registered variety under the Act for conducting an experiment or research.

• Researchers can use the initial source of variety for the purpose of developing another variety but repeated use needs the prior permission of the registered breeder.

Farmers’ Rights: A farmer who has evolved or developed a new variety is entitled to registration and protection in like manner as a breeder of a variety.

• A farmer can save, use, sow, re-sow, exchange, share or sell his farm produce including seed of a variety protected under the PPV&FR Act, 2001
• However, the farmer shall not be entitled to sell branded seed of a variety protected under the PPV&FR Act, 2001.
• There is also a provision for compensation to the farmers for non-performance of variety.
• The farmer shall not be liable to pay any fee in any proceeding before the Authority or Registrar or the Tribunal or the High Court under the Act.
• Farmers are eligible for recognition and rewards for the conservation of Plant Genetic Resources of land races and wild relatives of economic plants.

International Union for the Protection of New Varieties of Plants (UPOV)

• The International Union for the Protection of New Varieties of Plants (UPOV) is an intergovernmental organization with headquarters in Geneva (Switzerland).
• UPOV was established by the International Convention for the Protection of New Varieties of Plants. The Convention was adopted in Paris in 1961 and it was revised in 1972, 1978 and 1991.
• UPOV’s mission is to provide and promote an effective system of plant variety protection, with the aim of encouraging the development of new varieties of plants, for the benefit of society.
• The UPOV Convention provides the basis for members to encourage plant breeding by granting breeders of new plant varieties an intellectual property right: the breeder’s right.
• In the case of a variety protected by a breeder’s right, the authorization of the breeder is required to propagate the variety for commercial purposes. The breeder’s right is granted by the individual UPOV member
• Only the breeder of a new plant variety can protect that new plant variety. It is not permitted for someone other than the breeder to obtain protection of a variety.
• There are no restrictions on who can be considered to be a breeder under the UPOV system: a breeder might be an individual, a farmer, a researcher, a public institute, a private company etc.
• India is not a member.

16. Sanatan Dharma

Subject: HISTORY

Section: Art and culture

Context: Udhayanidhi Stalin’s remarks on Sanatan Dharma

Sanatan Dharma is a Sanskrit term that can be translated variously as “eternal religion” or “eternal law”, “unshakeable, venerable order”, or “ancient and continuing guideline”.

• The word “sanatan”, meaning eternal, does not appear in the Vedas.
• The word sanatan started being used in the Bhagavad Gita, and refers to knowledge of the soul, which is eternal
• Sanatan Dharma refers to eternal religions which believe in soul and rebirth.
• The term ‘Sanatan Dharma’ was used in the Gita by Arjuna, when he told Krishna that “when the clan is vitiated, the sanatan-dharmas of the clan are destroyed”.
• A similar term was used by Draupadi when the onlookers did not speak up on her behalf.
• Although the term is most commonly associated with Hinduism, it is also used by Jains and Buddhists because these religions also believe in rebirth. It is not used for religions that believe in one life, that is Judaism, Christianity and Islam, which come from the Middle East.
• Since the late 19th century, Sanatan Dharma has been used to signify Hinduism as a religion, distinct from other religions. It is used to evoke a certain homogeneity in Hinduism, without specifying how exactly that homogeneity is constituted.
• The term gained popularity in the late 19th century with the emergence of various sabhas designed to promote Sanatan Dharma. The Sanatan Dharma at that time came to be understood most popularly as a signifier of Hindu orthodoxy that was a reaction to the reform movements being carried out by missionaries and reformers such as the Brahmo Samaj and Arya Samaj. 
• In the Punjab of the 1890s, Pandit Din Dayal Sharma began defending certain religious practices such as murti puja or idol worship against the teachings of the Arya Samaj and established an organisation called ‘Sanatan Dharm Sabha’.
• The national organisation, ‘Bharat Dharma Mahamandal’ that also came up during this period stated as its first objective, “to promote Hindu religious education in accordance with the Sanatana Dharma”. The term was also used by the Hindu Mahasabha to refer to the Hindu religion.
• The idea that Sanatan Dharma was Hindu orthodoxy, and that it was in opposition to reform was entrenched in the social identities of late 19th century India.
• While the Arya Samajists criticised image worship and position of Brahmins in Hindu society, the Sabhas reacted by arguing in defence of the caste system and idol worship as being core features of the Sanatan Dharma tradition.
• Savarkar describes the followers of Sanatan Dharmaas those who recognise the authority of Shruti, Smriti and Puranas.
  Shruti and Smriti both refer to Vedic literature, Shruti is first-hand knowledge, that which was heard (Vedas, Upanishads, etc.), while Smriti is that which is written down from memory (Upvedas, Tantras, etc.)

17. Nataraja sculpture at Bharat Mandapam during G20 Summit in Delhi

Subject: HISTORY

Section: Art and culture

Context: A 27-foot Nataraja sculpture installed outside the Bharat Mandapam ahead of the G20 Summit weighs around 20 tonnes and took around 3.25-lakh man hours to take shape, the government said.

• The sculpture was created by the traditional Sthapatis of Swamimalai, who specialise in Hindu temple architecture, using the lost wax-casting process as per the measurements mentioned in the Silpa Shastra.
• The statue hails from Swamimalai, a small town in Tamil Nadu’s Thanjavur district known for its bronze sculptures. (GI Tag)
• The Silpa Shastra refers to the ancient Hindu texts that are considered as manuals for sculpture and Hindu iconography, prescribing the proportions of a sculptured figure, its composition, principles and meaning.
• The sculpture has been crafted using eight metals or ‘ashtadhatu’ (copper, zinc, lead, tin, silver, gold, mercury and iron), and has been created in the style of Chila tradition, which was prevalent in the southern part of India, 9th century onwards.
• Nataraja, or the Lord of Dance, symbolises the omnipresent and the infinite. This form of Lord Shiva is a synthesis of religion, philosophy, art, craft and science
• Nataraja’s idol also has two invisible triangles interlocked representing both Shiva and Shakti.
• The Nataraja statue symbolizes Lord Shiva’s dance and is an iconic representation of Tamil culture.
• The design draws inspiration from three revered Nataraja idols — the Thillai Nataraja Temple in Chidambaram, the Uma Maheswarar Temple in Konerirajapuram, and the Brihadeeswara (Big) Temple, a UNESCO World Heritage Site, in Thanjavur.

Crafting Tools:

• Traditional tools like leaf strips for measurements, spatula for wax shaping, and knife for carving.
• Scraper refines relief, soldering iron smooths wax, hammer-chisel removes excess metal.
• Engraving tools, files, and forceps for intricate carving.

Casting Process:

• Sculptors utilized the ‘lost-wax’ casting method, a time-tested technique since the Chola era.
• Beeswax-resin-groundnut oil mixture is used to create a wax model based on Agama Shastra.
• The process involves creating a wax model encased in clay; the clay is sourced from the alluvial soil near the Cauvery River in Swamimalai.
• Model covered in loam, holes drilled for metal pouring, then cooled to harden.
• Molten bronze is poured into the hot mold, breaking it after cooling, and details are carved, with emery paper polish.

Lost-Wax Method:

• The lost-wax method can be dated back to at least 6,000 years back — a copper amulet crafted using this method at a neolithic site in Mehrgarh, Balochistan (present day Pakistan) is dated to circa 4,000 BC.
• For millennia, the lost wax method was the foremost technique to produce elaborate metallic sculptures, and the Cholas took this skill to its zenith.
• In this method, first, a detailed wax model is made. This is then covered with a paste made of alluvial soil found on the banks of the Cauvery river that runs through the heart of what was Chola country.
• After this coating, applied multiple times, has dried, the figure is exposed to high heat, causing the wax to burn away, leaving a hollow, intricately carved mould. This is ultimately filled by molten metal to produce the sculpture.

Evolution:

• The Chola dynasty’s temple construction attracted artisans to Swamimalai.
• Sthapatis continued the bronze statue-making tradition over centuries.

More about Nataraja:

• Nataraja, also known as the Lord of the Dance, is represented in metal or stone in many Shaivite temples, particularly in South India.
• It is an important piece of Chola sculpture.

The Nataraja sculpture is characterized by various features:

• The drum, symbolizing the sound of creation, is held in the upper right hand. It is signified that all creations originate from the great sound of the damru.
• The eternal fire, representing destruction, is held in the upper left hand, emphasizing that destruction precedes and complements creation.
• The lower right hand is raised in the Abhay mudra, which signifies benediction and the assurance to devotees not to be afraid.
• The lower left hand points towards the upraised foot, indicating the path of salvation.
• The figure of a small dwarf serves as the base upon which Shiva is depicted dancing, symbolizing ignorance and individual ego.
• Shiva’s matted and flowing locks symbolize the flow of the Ganges River.
• In terms of ornamentation, one ear of Shiva is adorned with a male earring, while the other features a female earring. This represents the fusion of male and female energies and is often referred to as
• A snake is elegantly twisted around Shiva’s arm, symbolizing the kundalini power, which resides in the dormant stage within the human spine and, when awakened, leads to true consciousness.

The Nataraja is surrounded by a nimbus of glowing lights, symbolizing the vast unending cycles of time, reminding observers of the eternal nature of the universe and the perpetual dance within it.

18. Odisha’s Timeless Wonder – Konark Wheel replica at Bharat Mandapam during G20 summit

Subject :History

Section: Art and Culture

• The Konark Wheel took form under King Narasimhadeva-I’s reign in the 13th century. A wheel with 24 spokes, the wheel symbolises India’s ancient wisdom, architectural excellence and advanced civilisation.
• It has also been incorporated into the Indian tricolour. 
• The 12 pairs of spokes signify the 12 months in a year. Lord Sun is considered the lord of time and of what is beyond time.
• The Konark Wheel also reflects the richness of the Kalinga architectural style and the prosperity of ancient Odisha. 

Symbolism: The Konark Chakra represents the wheel of the Sun God’s chariot. The Sun Temple itself is designed in the shape of a colossal chariot with 24 wheels, each about 10 feet in diameter, and is pulled by a set of seven horses. These wheels symbolize the 24 hours in a day.

Time-Telling Feature: Interestingly, the spokes of the wheels can be used as a sundial. By observing the shadow cast by the spokes, one can determine the approximate time of day.

Architectural Marvel: The wheels are intricately carved and are considered masterpieces of Indian art and architecture. Each wheel is adorned with intricate designs, including floral motifs, human figures, and scenes from daily life.

Spiritual Significance: The wheels also have a spiritual connotation. They represent the cycle of creation, preservation, and destruction; the cycle of day and night; and the cycle of birth, life, and death.

Historical Context: The Konark Sun Temple was built in the 13th century by King Narasimhadeva I of the Eastern Ganga Dynasty. It is a UNESCO World Heritage site and is considered one of the greatest temples in India.

Current State: Over the years, the temple has suffered damage due to natural and human factors. While parts of the temple are in ruins, the wheels have largely remained intact, bearing testimony to the superior craft skills of the artisans of the time.

In essence, the Konark Chakra is a symbol of time, life’s cyclical nature, and the celestial significance of the Sun in Indian culture and spirituality.