Daily Prelims Notes 23 January 2024

Daily Prelims Notes

23 January 2024

Table Of Contents

1. First meeting of the Social Audit Advisory Body (SAAB) held
2. Odisha knocks on Tamil Nadu’s doors to help tackle jumbo attacks, seeks four Kumki elephants and mahouts
3. Delhi HC protects Anil Kapoor’s personality rights: What they are, how have courts ruled
4. SC status can’t be given to Dalits who converted to Islam & Christianity: Centre to SC
5. On equal access to benefits for all SCs
6. Russia blames Kyiv for attack on gas terminal at Baltic Sea port
7. World’s biggest iceberg battered by waves as it heads north
8. GSI formulates 1055 programs for field season 2024-25, focus on strategic and critical minerals like lithium
9. Majority of U.S. States remain frozen as Arctic weather extreme leaves its mark
10. Two new mammalian species added to Kaziranga’s fauna
11. India to send industry delegation for copper mining opportunities in Zambia
12. PM Modi launches new rooftop solar power scheme: What it is, why it is needed
13. Foreign Portfolio Investors (FPIs) Withdraw from Debt VRR Segment: Reasons and Impact
14. Expansion of Activities at International Financial Services Centre (IFSC)
15. Status of Education and Health Expenditure in India
16. Status of RoDTEP Scheme and US Anti-subsidy Duties

1. First meeting of the Social Audit Advisory Body (SAAB) held

Subject : Polity

Section: National Body

Context:

• The 1st meeting of the Social Audit Advisory Body (SAAB) was held on 18th January 2024 at the conference hall, Dr Ambedkar International Centre, New Delhi.

More on News:

• The meeting commenced with a welcome address by the Director of the National Institute of Social Defense (NISD).
• Deputy Director General of the Statistic Division of DoSJE – cum – convener of SAAB presented an overview of social audits, emphasizing on the importance of this social accountability tool in promoting transparency and accountability.

About the meeting:

• The Meeting was chaired by the Secretary, Department of Social Justice & Empowerment. 
• This advisory body is a first of its kind and has been established to guide the Ministry in institutionalizing social audits for its various schemes.
• Representatives from key ministries and academic institutions, including the
  • Ministry of Health & Family Welfare,
  • Department of Persons with Disabilities,
  • Ministry of Women and Child Development,
  • Department of Social Justice & Empowerment,
  • Ministry of Rural Development, National Institute of Rural Development,
  • Tata Institute of Social Sciences,
  • Delhi School of Social Work and
  • Indian Institute of Public Administration are members of this advisory body.
• The Department of Social Justice and Empowerment has taken a pioneering step by establishing the National Resource Cell for Social Audit (NRCSA) to ensure social audits through dedicated Social Audit Units at the state level. 
• The NRCSA team presented the approach of social audit processes developed and implemented by the department and their significant impact on the schemes’ effective implementation.
• Members of the SAAB provided valuable inputs to strengthen the social audit process and align it more closely with the principles of social justice.

About Social Audit Advisory Body:

• The body has been set up under National Institute of Social Defense (NISD).
• It aims to improve the quality of services being delivered by grant-in-aid(GIA)institutions, by way of social audits of the schemes and institutions of the ministry.

About National Institute of Social Defence:

• The National Institute of Social Defence (NISD) is an autonomous body under the Ministry of Social Justice and Empowerment.
• The National Institute of Social Defence (NISD) was set up originally as the Central Bureau of Correctional Services in 1961, under the Ministry of Home Affairs.
• Since 1975 the institute has been a subordinate office under the Ministry of Social Justice & Empowerment.
• The National Institute of Social Defence is the nodal training and research institute in the field of Social Defence. 
• It imparts training and conducts courses (long & short term) in the field of Social Defence which includes Old Age Care, Drug Abuse Prevention, Transgender Beggary Prevention and other Social Defence issues.
• Develops preventive, curative and rehabilitative tools, programmes and policies in the field of Social Defence, undertakes research, training, consultancy, documentation and publication in the field of Social Defence 

2. Odisha knocks on Tamil Nadu’s doors to help tackle jumbo attacks, seeks four Kumki elephants and mahouts

Subject : Environment

Section: Species in news

Context:

To mitigate man-elephant conflict which is emerging as a key challenge in Odisha, the state government has sought four Kumki elephants and their mahouts from Tamil Nadu.

More on news:

• According to official figures from Odisha’s forests department around 925 people died and 212 were disabled in human-elephant conflicts in the state in the past 10 years, from 2012-13 to 2021-22.
• As many as 784 elephants also died in the state during that period.
•  Odisha introduced the programme with the help of Kumkis in the 1990s in Similipal and Chandaka and it needs to be revived in view of the growing conflicts.

About the initiative:

• The Odisha government also hopes to revive its elephant training programme with Tamil Nadu’s help.
• It is initially planned at four places including
  • Chandaka in Khurda district, 
  • Satkosia in Angul district, 
  • Kapilash in Dhenkanal district and 
  • Similipal in Mayurbhanj and will be later expanded to other areas
• Odisha which lacks trained mahouts  has also requested Tamil Nadu to depute mahouts to take care of the Kumki elephants and to provide initial handholding support to the local mahouts in Odisha.

About Kumki elephants:

• Kumki (also known as Thappana in Malayalam) is a term used in India for trained captive Asian elephants used in operations to trap wild elephants,  to rescue or to provide medical treatment to an injured or trapped wild elephant.
• They are used in capturing, calming and herding wild elephants or to lead wild elephants away in conflict situations.
• They can be deployed strategically to help manage and drive wild elephants, thereby reducing damage to crops, human habitation and the potential loss of both human and elephant lives.
• These elephants can also be deployed for forest patrolling and rescue operations
• The Kumki elephants  serve  as an invaluable asset to the state’s wildlife organization and aid its efforts to minimize conflicts.

About Simlipal National Park:

• Simlipal is a tiger reserve in the Mayurbhanj district in the Indian state of Odisha
• It is part of the Mayurbhanj Elephant Reserve, which includes three protected areas
  • Similipal Tiger Reserve, 
  • Hadgarh Wildlife Sanctuary and 
  • Kuldiha Wildlife Sanctuary.
• Simlipal National Park derives its name from the abundance of red silk cotton trees growing in the area.
• The Similipal Biosphere Reserve lies within two biogeographical regions: the Mahanadian east coastal region of the Oriental realm and the Chhotanagpur biotic province of the Deccan peninsular zone. 
• Volcanic sedimentary rocks are aligned in three concentric rings and accentuate the area’s geologic formations. 
• The highest peak in the Similipal hill range is Khairiburu (1,168 meters). 
• Numerous waterfalls and perennial streams flow into major rivers, such as the Budhabalanga, Baitarani and Subarnarekha.

3. Delhi HC protects Anil Kapoor’s personality rights: What they are, how have courts ruled

Subject: Polity

Section: Constitution

Context:

• The Delhi High Court in September allowed Kapoor’s pleas for protection of his personality rights from misuse by third parties.

More in news:

• Celebrities can move the Court and seek an injunction when an unauthorized third party uses their personality rights for commercial purposes.
• Intellectual property rights specialist Pravin Anand distinguished unauthorized use from “fair use.”
• A fair use would be for example depiction in news, teaching material or other non-commercial uses or even artistic uses like mimicry or satire which is a copy but not mere reproduction. However, if a third-party uses it to profit from it, it cannot be termed fair use.

What is a personality right?

• The name, voice, signature, images or any other feature easily identified by the public are markers of a celebrity’s personality and are referred loosely as “personality rights.”
• Any feature easily identified by the public as markers of a celebrity’s personality and are referred loosely as “personality rights.”
• The idea is that only the owner or creator of these distinct features has the right to derive any commercial benefit from it.
• These could include a pose, a mannerism or any aspect of their personality.
• Rajinikanth’s name, Amitabh Bachchan’s baritone and now Anil Kapoor’s style ,are some of the personality rights that celebrities are trying to protect.
• Many celebrities even register some aspects as a trademark to use them commercially.
• For example, Usain Bolt’s “bolting” or lightning pose is a registered trademark.
• Exclusivity is a big factor in attracting commercial dividends for celebrities.

How does the law protect the right?

• Personality rights or their protection are not expressly mentioned in a statute in India but are traced to fall under the right to privacy and the right to property.
• Delhi High Court and the Madras High Court have passed interim orders, the law is at a nascent stage in India.
• In the case of Anil Kapoor, the Delhi High Court granted an ex-parte, omnibus injunction restraining 16 entities from using Kapoor’s name, likeness, image, using technological tools like Artificial Intelligence, face morphing and even GIFs for monetary gain or commercial purpose.

When can the Court grant an injunction?

• In the Titan case, the HC in its order listed out the “basic elements comprising the liability for infringement of the right of publicity.”
• First, the right has to be valid. This means that the Court must be satisfied that the “plaintiff owns an enforceable right in the identity or persona of a human being.”
• Second, is that the celebrity has to be easily identifiable in the alleged misuse.
• On how to prove that the celebrity is identifiable, the HC said that a simple “unaided identification” should be enough if the celebrity is well-known.

4. SC status can’t be given to Dalits who converted to Islam & Christianity: Centre to SC

Subject: Polity

Section: Constitution

Context: 

• Centre has told the Supreme Court The Constitution (Scheduled Castes) Order, 1950 does not suffer from any “unconstitutionality” and the exclusion of Christianity and Islam was due to the reason that the “oppressive system” of untouchability was not prevalent in either of these two religions.

More on news:

• The Constitution (Scheduled Castes) Order, 1950, says that no person professing a religion other than Hinduism, Sikhism and Buddhism shall be deemed to be a member of a Scheduled Caste (SC).
• The government told the Supreme Court it has not accepted the report of the Justice Ranganath Misra Commission.
• Ranganath Misra Commission had recommended inclusion of Dalit Christians and Dalit Muslims in the Scheduled Castes list as it was “flawed”.
• The Centre recently appointed a commission headed by former Chief Justice of India (CJI) K G Balakrishnan to examine giving SC status to new people who claim to “historically” have belonged to the SCs but have converted to a religion other than those mentioned in the Presidential orders.

Key highlights:

• The government has highlighted these issues in a reply filed in the apex court to a plea which alleged The Constitution (Scheduled Castes) Order, 1950 is discriminatory and violative of Articles 14 (equality before law) and 15 (prohibition of discrimination on grounds of religion, race, caste etc) of the Constitution.
• The Centre recently appointed a commission headed by former Chief Justice of India (CJI) K G Balakrishnan to examine giving SC status to new people who claim to “historically” have belonged to the SCs but have converted to a religion other than those mentioned in the Presidential orders.
• It said the Constitution (Scheduled Caste) Order, 1950 was based on historical data which clearly established that no such backwardness or oppression was ever faced by the members of Christian or Islamic society.

Basis of the decision:

• One of the reasons for which people from Scheduled Castes have been converting to religions like Islam or Christianity is that they can come out of the oppressive system of untouchability which is not prevalent at all in Christianity or Islam.
• Once they have come out and ameliorated their social status by converting themselves to Christianity or Islam, they cannot claim to be backward since backwardness based on untouchability is only prevalent in Hindu Society

Article 341 of the constitution:

• Centre has examined the matter and noted that certain groups of persons who have historically suffered social inequality, discrimination and the consequent backwardness resulting therefrom, have been declared to be Scheduled Castes by Presidential Orders issued from time to time under Article 341 of the Constitution.
• Articles 341 and 342, empower the President of India to draw up a list of scheduled castes and tribes.
• If such a notification is related to a state, then also the President will notify the same. However, it can be done after consultation with the governor of the state
• Any inclusion or exclusion from the presidential notification of any caste, race, or tribe can be done by Parliament by Law.
• If any question arises whether or not a particular tribe is a tribe within the meaning of this article one has to look at the public notification issued by the president.

5. On equal access to benefits for all SCs

Subject: Polity

Section: Constitution

Context:

• The Union government has formed a high level committee of secretaries, chaired by the Cabinet Secretary, to evaluate and work out a method for the equitable distribution of benefits, schemes and initiatives to the most backward communities among  the over 1,200 Scheduled Castes (SCs) across the country, that have been crowded out by relatively forward and dominant ones.

About Sub-categorisation of SCs

• Sub-categorisation of SCs aims to address the intra-group disparities by creating smaller groups based on socio-economic and educational indicators. The goal is to ensure a more equitable distribution of reservation benefits among SCs.
• The concept of sub-categorisation has sparked debate due to its complexities and potential challenges. It involves redefining and restructuring the existing reservation system, which has both supporters and critics.

Arguments in favour

• Existence of graded inequalities among SC communities. Even among the marginalised, there are communities that have lesser access to basic facilities.
• As a result, the relatively more forward communities among them have managed to avail benefits consistently while crowding the more backward ones out.
• The solution, therefore, is to sub-categorise the communities and provide separate reservation to the more backward communities within the reservation meant for SCs.

Arguments against

• Allotting separate reservations within the categories would not really address the root cause of the problem.
• The idea behind sub-categorisation was to ensure representation at all levels.
• But given the disparity, even if posts were reserved at higher levels, these most backward SCs would not have enough candidates to be considered for it in the first place.
• Hence, the existing schemes and government benefits should first reach these sections before any sub-categorisation.
• Also, legal experts have pointed out the necessity to have concrete data to support sub-categorisation.
• In this context, they present the case of a caste census of each community and sub-community and their respective socio-economic data.
• As per them, caste census can be the only empirical basis on which the government can justify sub-categorisation of benefits and how much extra share of benefits each community is in need of.

Legal and Political Developments

• Supreme Court Rulings: The Supreme Court has upheld the legality of sub-categorisation within SCs, provided it is based on quantifiable data and serves a legitimate purpose.
• State-Level Implementation: Several states, including Tamil Nadu, Punjab, and Haryana, have implemented sub-categorisation, showcasing the varied approaches at the state level.
• Central Government’s Stance: The central government has been cautious, setting up committees to examine the issue but has not yet implemented nationwide sub-categorisation, reflecting the need for a comprehensive and considered approach.

Key Issues and Challenges

• Defining Criteria: Determining appropriate criteria for sub-categorisation, such as social, economic, educational, and occupational indicators, is crucial to ensure accurate classification.
• Data Collection: Accurate and reliable data on SC communities is essential for effective implementation and addressing the unique challenges faced by different sub-groups.
• Political Consensus: Building consensus among SC groups and political parties is necessary to avoid conflicts and ensure a smooth implementation process.
• Legal Challenges: Potential legal challenges, based on claims of discrimination or violation of constitutional rights, need to be anticipated and addressed.
• Administrative Capacity: Ensuring that the administrative machinery can handle the complexity of sub-categorisation is crucial for successful implementation.

6. Russia blames Kyiv for attack on gas terminal at Baltic Sea port

Subject: IR

Section: Places in news

Context:

The Kremlin blamed Ukraine for an attack that started a fire at a gas terminal at the Baltic port of Ust-Luga.

About Baltic Sea:

• It is part of the North Atlantic Ocean, situated in Northern Europe.
• It extends northward from the latitude of southern Denmark almost to the Arctic Circle and separates the Scandinavian Peninsula from the rest of continental Europe.
• The Baltic sea connects to the Atlantic Ocean through the Danish Straits.
• It is the largest expanse of brackish water in the world. Its water salinity levels are lower than that of the World Oceans due to the inflow of fresh water from the surrounding land and the sea’s shallowness.
• Surrounding Countries: Denmark, Germany, Poland, Lithuania, Latvia, Estonia, Russia, Finland and Sweden.
• Depth: Its depth averages 55 meters, and the deepest part is approximately 459 meters below the sea’s surface.
• The Baltic Sea contains three major gulfs: The Gulf of Bothnia to the north, the Gulf of Finland to the east, and the Gulf of Riga slightly to the south of that.
• More than 250 rivers and streams empty their waters into the Baltic Sea. Neva is the largest river that drains into the Baltic Sea.
• Islands: It is home to over 20 islands and archipelagos. Gotland, located off the coast of Sweden, is the largest island in the Baltic Sea.

What are the Baltic Nations?

• These are three countries of north-eastern Europe, on the eastern shore of the Baltic Sea.
• Baltic Nations are Estonia, Latvia and Lithuania.
• They are bounded on the west and north by the Baltic Sea, on the east by Russia, on the southeast by Belarus, and on the southwest by Poland and an exclave of Russia.

7. World’s biggest iceberg battered by waves as it heads north

Subject: Environment

Section: Climate Change

Context:

• The iceberg named A23a is nearly more than twice the size of Greater London.  After decades stuck to the Antarctic ocean floor, it is now heading north on what could be its final journey.

More About News:

• A23a first broke off the Antarctic coast in 1986, making it the world’s oldest iceberg as well as its largest.
• The iceberg, which is up to 400 metres thick in places, is currently drifting between Elephant Island and the South Orkney islands.
• It contains an estimated one trillion tonnes of freshwater that is likely to melt off into the ocean along the way.
• Since breaking free, A23a has followed roughly the same path as previous massive  icebergs, A68 and A76, moving past the east side of the Antarctica Peninsula  through  the Weddell Sea.
• Whether or not this was caused by climate change, winter Antarctic sea ice reached  its lowest level on record last year, remains an open question.

8. GSI formulates 1055 programs for field season 2024-25, focus on strategic and critical minerals like lithium

Subject: Geography

Section: Climatology

Context:

• The Geological Survey of India (GSI) has planned 1055 scientific programs for its 2024-25 Field Season, including 392 mineral development projects, which cover G2, G3, G4, and offshore explorations.

Details:

• A significant focus is on discovering strategically important minerals, especially critical ones like lithium.
• Additionally, there are 133 projects aimed at mineral discovery, which show promise for future exploration at the G4 stage.
• Minerals such as antimony, cobalt, gallium, graphite, lithium, nickel, niobium, and strontium, among others, are critical for green technologies, high-tech equipment, aviation, and national defence manufacturing needs.
• India has a high import dependence for many of these minerals.

Strategically critical:

• In FY-25, the Geological Survey of India (GSI) approved 188 projects focused on strategically important mineral commodities, such as rare earth elements (REE), graphite, lithium, vanadium, and platinum group of elements (PGE). This represents a nearly 50% increase from the previous year’s target.
• Additionally, 111 projects are dedicated to natural hazard studies or public good geoscience with societal benefits.

Rare Earth Elements (REEs):

• There are 17 REEs — 15 lanthanides (lanthanum, cerium, praseodymium; neodymium, promethium; samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium and lutetium), scandium, and yttrium. The lanthanide elements are divided into two groups — light and heavy.
• REEs are used in industrial applications including electronics, clean energy, aerospace, automotive and defence.
• The manufacture of permanent magnets is the single largest and most important end-use for REEs, accounting for 43 per cent of demand in 2021.

Exploration of REEs:

• The explorations are spread across states like Chhattisgarh (Raigarh), Maharashtra (Nagpur, Chandrapur, and Sindhudurg), Bihar, Jharkhand (Giridh, Simdega, and Koderna), Odisha (Nayagarh, Ganjam, and Angul), West Bengal (Purulia), Arunachal Pradesh (Kurung Kumey), Assam (West Karbi Anglong), Meghalaya (South West Khasi Hills and Ri-Bhoi), Uttar Pradesh (Lalitpur and Sonbhadra), Andhra Pradesh (Anantapur, East Godavari, Alluri Sitharama Raju, Chittoor, Annamayya, Nellore, and Prakasam), Kerala (Kottayam, Idukki, Thiruvananthapuram, Kollam, and Wayanad), Telangana (Bhadradri and Jayashankar), Tamil Nadu (Kanyakumari), Karnataka (Chamarajanagar), Gujarat (Chhota Udepur, Aravalli, Mehsana, and Banaskantha), and Rajasthan (Alwar, Udaipur, Sirohi, and Barmer), among others.

National Mineral Exploration Trust (NMET):

• The NMET was established by the Government of India in 2015, in pursuance of subsection(1) of Section 9C of the Mines and Minerals (Development and Regulation) Act, 1957, with the objective of expediting mineral exploration in the country.

United Nations Framework Classification (UNFC):

• The United Nations Framework Classification for Resources (UNFC) is a resource project-based and principles-based classification system for defining the environmental-socio-economic viability and technical feasibility of projects to develop resources.
• UNFC provides a consistent framework to describe the level of confidence of the future quantities produced by the project.
• It is a universally applicable scheme for classifying/evaluating energy and mineral reserves/resources.
• It was adopted in 2004 by the United Nations Economic Commission of Europe (UNECE).
• The UNFC consists of a 3-dimensional system with the following three axes:
• The UNFC is a three-digit code-based system wherein:

1. First digit represents economic viability axis,
2. Second digit represent feasibility axis
3. Third digit represent geologic axis

• Each of these axes has further codes in decreasing order.

E Axis:

• The degree of economic viability (economic or potentially economic or intrinsically economic) is assessed in the course of pre feasibility and feasibility studies.
• A prefeasibility study provides a preliminary assessment with a lower level of accuracy than that of a feasibility study, by which economic viability is assessed in detail.
• The Economic viability has codes 1, 2 and 3 in decreasing order.

F Axis:

• Feasibility assessment studies form an essential part of the process of assessing a mining project.
• The typical successive stages of feasibility assessment i.e., geological study as initial stage followed by prefeasibility study and feasibility study/mining report are well defined.
• The feasibility assessment has codes 1, 2 and 3.

G Axis:

• Geological Assessment, which is more or less like the classification as per ISP adopted by GSI and other agencies in India.
• The process of geological assessment is generally conducted in stages of increasing details.
• The typical successive stages of geological investigation i.reconnaissance, prospecting, general exploration and detailed exploration, generate resource data with clearly defined degrees of geological assurance.
• The mineral extraction process typically begins with the G4 stage.
• These four stages are therefore used as geological assessment categories in the classification.
• The geological assessment has 4 codes i.e.
  • Detailed Exploration (G1)
  • General Exploration (G3)
  • Preliminary Exploration (G3)
  • Reconnaissance (G4)
• The G3 stage is further categorised into a six-step process to extract Lithium from Salt-flat brines or Mineral ores.
• Stage 1: Geological Surveys: Mapping on a more extensive scale and linking prepared maps with a top grid. Assessment of lithology, structure, surface mineralisation, analysis of old workings etc.
• Stage 2: Perform Geochemical sampling rock type wise, soil survey.
• Stage 3: Detailed ground geophysical work and borehole logging.
• Stage 4: Check the technicality of pits/trench to explore the mineralised zone and drill borehole spacing
• Stage 5: Sampling for litho geochemical from a well-known section, pit/trench and core sample
• Stage 6: Petrographic and mineralogical studies: the combined study of rocks in thin sections and the chemistry, crystal structure and physical properties of the mineral constituents of rocks.
• According to the Indian Bureau of Mines (IBM), apart from the thorough examination of the above-mentioned geological axis, the proposal to mine minerals also needs to be assessed from a feasibility point of view along with the prospects of economic viability.

Source: TH BL

9. Majority of U.S. States remain frozen as Arctic weather extreme leaves its mark

Subject: Geography

Section: Climatology

Context:

• Sub-freezing temperatures and dangerous road conditions have led to at least 72 deaths in the U.S. this January, with states as far south as Texas and Florida affected by deadly arctic weather. Many of the deaths were due to hypothermia or road accidents. However, the extreme cold is expected to ease in the coming days.

Details:

• Residents are facing challenges with basic needs like cooking and sanitation, relying on limited bottled water distribution.
• The cold weather has also been deadly. Travel remains hazardous in parts of Kansas and Oklahoma due to freezing rain and high winds, while Iowa is experiencing extremely low wind chills.
• As temperatures are predicted to rise, there are concerns about the potential for bursting pipes.

End in sight:

• The U.S. is seeing the end of the recent subzero temperatures.
• The National Weather Service anticipates a steady warm-up for the central part of the country due to no additional influx of Arctic air from Canada.
• However, on the West Coast, particularly in the Columbia River Gorge, freezing rain is forecasted, with temperatures staying near or below freezing.
• This weather could lead to more ice accumulation on trees and power lines, increasing the risk of them toppling.
• The National Weather Service has warned of hazards from chunks of falling ice.

Why do extreme cold weather events still happen in a warming world?

• These severe cold events occur when the polar jet stream – the familiar jet stream of winter that runs along the boundary between the Arctic and more temperate air – dips deeply southward, bringing the cold Arctic air to regions that don’t often experience it.
• They often occur in association with changes to another river of air even higher above the jet stream: the stratospheric polar vortex, a great stream of air moving around the North Pole in the middle of the stratosphere.
• When this stratospheric vortex becomes disrupted or stretched, it can distort the jet stream as well, pushing it southward in some areas and causing cold air outbreaks.

Places in news:

• Columbia River Gorge: the USA
• Topanga Canyon: the USA

Source: TH

10. Two new mammalian species added to Kaziranga’s fauna

Subject: Environment

Section: Species in news

Context:

• Two new mammalian species have been added to the list of fauna in Assam’s Kaziranga National Park and Tiger Reserve, the primary address of the one-horned rhinoceros on earth.

Details:

• The two mammals are the elusive binturong (Arctictis binturong), the largest civet in India also known as the bearcat, and the small-clawed otter (Aonyx cinereus).
• Both are listed under Schedule I of the Wildlife Protection Act of 1972.
• The list of mammals in Kaziranga is topped by the Big Five — the great Indian one-horned rhinoceros (Rhinoceros unicornis), Indian elephant (Elephas maximus), Bengal tiger (Panthera tigris), wild water buffalo (Bubalus bubalis), and the eastern swamp deer (Cervus duvauceli).
• The other mammals found in Kaziranga National Park and Tiger Reserve include the Indian wild boar (Sus scrofa), Indian gaur (Bos gaurus), sambar (Cervus unicolor), hoolock or white-browed gibbon (Hylobates hoolock), Gangetic dolphin (Platanista gangetica), capped langur or leaf monkey (Presbytis pileatus), sloth bear (Melursus ursinus), leopard (Panthera pardus), and the jackal (Canis aureus).

Binturong (Arctictis binturong) (bearcat):

• An arboreal mammal native to South and Southeast Asia, the binturong is not easily found due to its nocturnal and arboreal habits. It is also uncommon in much of its range and is known to have a distribution exclusive to the northeast of India.
• The binturong is the only species in the genus Arctictis.

Small-clawed otter (Aonyx cinereus):

• Also known as the Asian small-clawed otter, the mammal has a wide distribution range extending through India eastwards to Southeast Asia and southern China.
• In India, it is found mostly in the protected areas of West Bengal, Assam, Arunachal Pradesh, Karnataka, Tamil Nadu, and some parts of Kerala in the Western Ghats region.
• Small-clawed otters have partially webbed feet with short claws, which make them skilled hunters in aquatic environments.
• They are primarily found in freshwater habitats where they feed on a diet of fish, crustaceans, and molluscs.
• The small-clawed otter was previously reported from the western Himalayas and parts of Odisha.

Source: TH

11. India to send industry delegation for copper mining opportunities in Zambia

Subject: Geography

Section: Economic Geography

Context:

• The Indian Mines Ministry is planning to send an industry delegation to Zambia to discuss potential copper exploration and mining projects.
• Key Indian companies like Vedanta and its subsidiary Hindustan Zinc, Ola Electric, and LOHUM (a lithium-ion battery recycler) have shown interest in this initiative.

Details:

• Zambia holds about 6% of the world’s copper reserves and was the eighth-largest copper producer in 2022.
• The second meeting of the Joint Working Group (JWG), set up under a memorandum of understanding between India and Zambia, is scheduled to take place in Zambia.
• The meeting aims to facilitate collaboration between the Indian public and private sectors and the Zambian mining industry.
• India currently has a limited presence in Zambia’s copper mining sector, with Vedanta recently regaining control of Konkola Copper Mines.
• The growing domestic demand for copper in India, particularly for clean energy technologies, and the country’s reliance on copper imports make the acquisition of overseas copper mining blocks attractive.
• Other international companies, like Canada’s First Quantum Minerals and China’s CNMC, are also significant players in Zambia’s copper industry.
• LOHUM, however, clarified that its interest in the delegation does not extend to acquiring or exploring copper mining blocks in Zambia, as it focuses on recycling lithium-ion batteries.

Copper demand in India:

• As per International Copper Association India, domestic copper demand grew by 16 per cent in FY2022-24, while demand for copper in clean energy technologies grew by 32 per cent.
• At the same time, net imports of copper cathode, which is the basic product of copper production, grew by 180 per cent in the same financial year as India is not self-sufficient in copper due to low domestic reserves.

About Copper Mining:

• Copper is a chemical element with a distinctive reddish-brown colour. It is an excellent conductor of electricity and heat.
• Copper is found in various ores in the Earth’s crust. Common copper minerals include chalcopyrite, bornite, chalcocite, and malachite.
• Copper mining involves several stages, from the discovery of copper deposits to the extraction and processing of the metal.
• There are various mining methods used for extracting copper, and the choice depends on factors such as the depth of the deposit, the type of ore, and economic considerations.
• Open-Pit Mining: Used for shallow deposits. Large pits are excavated, and ore is extracted from the surface.
• It accounts for 80% of all copper mining operations in the world.
• Underground Mining: Used for deeper deposits. Shafts or tunnels are dug to reach the ore underground.
• Chile is the top copper producer in the world, with 27% of global copper production.
• Chile is followed by another South American country, Peru, responsible for 10% of global production.

Copper Mining in India:

• There are approximately 700 copper mines in operation globally, of which 127 are in India.
• However, India is poor in terms of copper reserves & production.
• India has low-grade copper ore (less than 1% metal content) compared to the international average of 2.5%.
• Madhya Pradesh is the leading producer of copper in India. It accounts for producing 53% of copper in this country.
• Rajasthan accounts for 43%, and Jharkhand accounts for 4% of copper production in India.

Source: IE

12. PM Modi launches new rooftop solar power scheme: What it is, why it is needed

Subject: Schemes

Section: Environment

Context:

• Prime Minister Narendra Modi on January 22, 2024, announced the ‘Pradhan Mantri Suryodaya Yojana’, a government scheme under which one crore households will get rooftop solar power systems.

About ‘Pradhan Mantri Suryodaya Yojana’:

• The scheme seems to be a new attempt to help reach the target of 40 GW rooftop solar capacity, as envisaged under the Rooftop Solar Programme in 2014.
• Target: installing rooftop solar on 1 crore houses.
• The scheme would help not only reduce electricity bills of the “poor and middle class”, but also push India’s goal of becoming self-reliant in the energy sector.

About Rooftop Solar Programme:

• In 2014, the government launched the Rooftop Solar Programme which aimed to achieve a cumulative installed capacity of 40,000 megawatts (MW) or  40 gigawatts (GW) by 2022.
  • However, this target couldn’t be achieved. As a result, the government extended the deadline from 2022 to 2026.
• It provides Central Financial Assistance and incentives to distribution companies (DISCOMs) as per the guidelines of the Ministry of New and Renewable Energy (MNRE).
• Consumers can benefit from the scheme either through DISCOM-tendered projects or via the National Portal (www.solarrooftop.gov.in).
• The portal allows consumers to choose vendors and the brand/efficiency of solar equipment. DISCOMs are responsible for issuing technical feasibility approval, installing net meters, and inspecting systems. After installation and inspection, subsidies are directly transferred to consumers’ bank accounts.
• Additionally, consumers can export surplus solar power units generated from their rooftop solar plants to the grid, as per metering provisions issued by State Electricity Regulatory Commissions (SERCs) or Joint Electricity Regulatory Commissions (JERCs). Consumers are monetarily compensated for the surplus power exported according to prevailing regulations.

What is India’s current solar capacity?

• As of December 2023, India’s solar power installed capacity is approximately 73.31 gigawatts (GW), with rooftop solar capacity contributing about 11.08 GW.
• Rajasthan leads the country in total solar capacity with 18.7 GW, followed by Gujarat with 10.5 GW.
• In terms of rooftop solar capacity, Gujarat is the leader with 2.8 GW, with Maharashtra in second place at 1.7 GW. Solar power constitutes a significant portion of India’s renewable energy capacity, which is around 180 GW.

Why is an expansion of solar energy important for India?

• Expanding solar energy is crucial for India due to the country’s expected largest energy demand growth over the next 30 years, as projected by the International Energy Agency.
• To meet this growing demand, India requires a reliable energy source that isn’t solely dependent on coal.
• India aims to achieve 500 GW of renewable energy capacity by 2030.
• The significant growth in solar power capacity, from less than 10 MW in 2010 to 70.10 GW in 2023, highlights the country’s commitment to expanding solar energy as a key part of its energy mix.

Source: IE

13. Foreign Portfolio Investors (FPIs) Withdraw from Debt VRR Segment: Reasons and Impact

Subject: Economy

Section: External sector

1. Withdrawal Amount:
   • FPIs have pulled out ₹8,089 crore from the debt Voluntary Retention Route (VRR) segment after four consecutive years of inflows.
2. Reasons for Withdrawal:
   • Lack of Investment Opportunities: FPIs cite a dearth of opportunities to invest in stressed or structured credit as a primary reason for the withdrawal.
   • End of Withholding Tax Benefit: The end of the withholding tax benefit has influenced FPIs to reconsider their investment strategies in the Indian debt market.
   • Reduced Promoter Leverage: Opportunities that were once available due to promoter financing have diminished as promoter leverage in the corporate sector has significantly reduced.
3. Contrast with Overall Debt Market Inflows:
   • In contrast to the outflows from the VRR segment, the overall Indian debt market has witnessed significant inflows, exceeding ₹80,000 crore. This surge is attributed to potential front-loaded flows ahead of India’s inclusion in global bond indices.
4. Voluntary Retention Route (VRR):
   • Introduced in March 2019, VRR aims to attract long-term overseas investments into the Indian debt market.
   • Investments through VRR are exempt from certain regulatory norms applicable to regular FPI investments.
5. Impact of Tax Policy Changes:
   • The withdrawal is partly attributed to the impact of tax policy changes, especially the end of the 5% concessional tax rate, resulting in an effective withholding tax of 20% on rupee-denominated bonds.
6. Investor Sentiment and Fiscal Approach:
   • The outflows underscore the significance of tax policy changes in shaping investor sentiment.
   • Emphasizes the need for a balanced fiscal approach to maintain market competitiveness, according to industry experts.
7. Currency Hedging and Developed Markets:
   • After accounting for currency hedging costs, it may be more advantageous for FPIs to stay invested in developed markets like the US, where yields have increased significantly across maturities.

In summary, the withdrawal of FPIs from the debt VRR segment reflects a combination of factors, including a scarcity of attractive investment opportunities, changes in tax policies, and reduced opportunities in the corporate sector. The contrasting inflows into the broader debt market suggest varied investor strategies and considerations.

Voluntary Retention Route (VRR):

1. Introduction:
   • VRR, or Voluntary Retention Route, is a scheme introduced by the Reserve Bank of India (RBI) in March 2019.
2. Objective:
   • The primary goal of VRR is to attract long-term foreign portfolio investments into the Indian debt market.
   • VRR is designed as a voluntary scheme for Foreign Portfolio Investors (FPIs) looking to invest in debt instruments in India.
3. Regulatory Norms:
   • Investments made through the VRR route are exempt from certain macroprudential and regulatory norms that typically apply to regular FPI investments.
4. Long-Term Commitment:
   • The scheme encourages FPIs to make long-term commitments to the Indian debt market by offering certain exemptions and benefits.
5. Macroeconomic Considerations:
   • By providing a route with fewer regulatory restrictions, VRR aims to strike a balance between attracting foreign investments and ensuring macroeconomic stability.
6. Types of Debt Instruments:
   • FPIs can invest through VRR in various debt instruments, including government securities, treasury bills, corporate bonds, and other money market instruments.
7. Auctions and Limit Acquisition:
   • To invest through VRR, FPIs need to participate in periodic auctions conducted by the RBI.
   • There is a limit on the total amount of investment that can be acquired through the VRR route.

In summary, VRR is a specialized route introduced by the RBI to attract and facilitate long-term foreign investments in the Indian debt market, offering exemptions from certain regulatory norms to encourage FPIs to make sustained commitments.

Front-Loading in Debt Market by Foreign Portfolio Investors (FPIs):

1. Strategy Overview:
   • In the debt market, FPIs are employing a strategy known as “front-loading.”
   • This involves accelerating government securities purchases in anticipation of India’s bond inclusion in global indices starting June 2024.
2. Purpose of Front-Loading:
   • The primary goal of front-loading is to position FPIs advantageously ahead of the anticipated increase in demand for Indian bonds due to global index inclusion.
3. Bond Inclusion in Global Indices:
   • India’s government securities are expected to be included in global indices from June 2024.
   • This inclusion is likely to attract significant attention from international investors tracking these indices.
4. Positive Factors Influencing Strategy:
   • Stability of the Rupee: The stability of the Indian rupee is identified as a positive factor influencing FPI strategies in the fixed-income space.
   • Core Inflation Below 4%: Another positive factor is the core inflation falling below the 4% mark, contributing to the attractiveness of Indian debt.
5. Record Investment in Indian Debt Markets:
   • FPIs executed a front-loading strategy by injecting a record ₹15,647 crore into Indian debt markets in the first three weeks of January 2024.
   • This substantial investment builds on the momentum observed in 2023 when total debt inflows reached a six-year high of $7.3 billion.
6. Anticipation of Favorable Market Conditions:
   • Experts anticipate that FPIs are positioning themselves early to benefit from potentially favorable market conditions once India’s bonds are included in global indices.
   • The early investment is seen as a proactive approach to capitalize on the expected surge in demand.

In summary, front-loading in the debt market by FPIs reflects a strategic move to gain a competitive advantage and maximize returns in anticipation of increased demand for Indian government securities following their inclusion in global indices. Positive economic indicators, such as a stable rupee and lower core inflation, contribute to the attractiveness of this investment strategy.

Rupee-Denominated Bonds:

1. Introduction:
   • Rupee-denominated bonds, also known as Masala bonds, are debt instruments issued in Indian rupees by entities, including Indian and foreign companies, in the international markets.
2. Currency of Denomination:
   • Unlike traditional bonds, which are denominated in major global currencies like the US Dollar or Euro, rupee-denominated bonds are issued in Indian rupees.
3. Objective:
   • The primary purpose of issuing rupee-denominated bonds is to allow entities to raise capital in international markets without being exposed to currency risk. Investors bear the currency risk in these bonds.
4. Interest Payments and Principal Repayment:
   • Interest payments and the repayment of the principal amount are made in Indian rupees, providing clarity to both the issuer and the investor about cash flows.
5. Masala Bonds Terminology:
   • The term “Masala bonds” gained popularity as a colloquial name for rupee-denominated bonds, reflecting the Indian currency and adding a cultural touch.
6. Issuers of Rupee-Denominated Bonds:
   • Indian entities, including corporations and financial institutions, may issue rupee-denominated bonds in the international markets.
   • Foreign entities, especially those interested in raising funds for investments in India, may also issue such bonds.
7. Investor Base:
   • Rupee-denominated bonds attract a diverse set of investors, including global investors seeking exposure to the Indian market and Indian diaspora interested in supporting Indian entities.
8. Risk and Returns:
   • Investors in rupee-denominated bonds are exposed to currency risk, as the value of the Indian rupee against other currencies can fluctuate.
   • The interest rates offered on these bonds are influenced by market conditions and issuer creditworthiness.
9. Tax Implications:
   • The tax treatment of interest income earned on rupee-denominated bonds may vary depending on the jurisdiction and relevant tax laws.
10. Regulatory Framework:
    • The issuance and trading of rupee-denominated bonds are subject to regulatory guidelines set by authorities in both the issuer’s country and the international market.
11. Growing Popularity:
    • Rupee-denominated bonds have gained popularity as an alternative fundraising avenue for Indian entities and as an investment option for global investors looking to diversify their portfolios.

In summary, rupee-denominated bonds provide a unique avenue for entities to tap into international capital markets while allowing investors to gain exposure to the Indian economy, albeit with associated currency risk.

14. Expansion of Activities at International Financial Services Centre (IFSC)

Subject: Economy

Section: Monetary Policy

1. Government’s Decision:
   • The government has expanded the scope of activities permissible at the International Financial Services Centre (IFSC).
2. Inclusion of Services:
   • A gazette notification issued by the Ministry of Finance has included additional services as part of financial services within the IFSC.
3. Enlisted Services:
   • The expanded list now encompasses services such as bookkeeping, accounting, taxation, and financial crime compliance.
4. Regulatory Oversight:
   • The provision specifies that these financial services should be offered by units within an IFSC that are regulated by the International Financial Services Centres Authority (IFSCA).
5. Target Audience:
   • The financial services are intended for non-residents whose business is not established through the splitting up of existing business in India or the reconstruction/reorganization of existing business in India.
6. IFSCA Regulation:
   • The regulatory oversight by IFSCA ensures compliance and adherence to international financial standards within the IFSC.
7. Date of Notification:
   • The notification was issued on January 18, formalizing the inclusion of the specified services within the scope of financial activities at IFSC.

International Financial Services Centres Authority (IFSCA) and Its Scope:

1. Establishment:
   • IFSCA is the regulatory body established by the Government of India to regulate financial services in the International Financial Services Centres (IFSCs).
2. Objective:
   • The primary objective of IFSCA is to develop and regulate the financial products, financial services, and financial institutions in the IFSCs to promote ease of doing business.
   • IFSCA has a broad regulatory scope covering various financial services, institutions, and activities within the IFSCs.
3. Regulation of Financial Services:
   • IFSCA regulates a wide array of financial services, including banking, insurance, securities, and other financial products and services offered in the IFSCs.
   • The authority oversees and regulates financial institutions operating within the IFSCs, ensuring compliance with international best practices and standards.
   • IFSCA plays a crucial role in the development of financial markets within IFSCs by introducing innovative products and services, fostering competition, and attracting global investors.
4. International Standards:
   • IFSCA aligns its regulatory framework with international standards to facilitate global participation and enhance the competitiveness of IFSCs.
5. Innovation and Technology:
   • Encouraging innovation and the use of technology in financial services is another aspect of IFSCA’s mandate, promoting a modern and efficient financial ecosystem.
6. Investor Protection:
   • The authority is committed to ensuring investor protection and maintaining the integrity of the financial system within the IFSCs.

IFSCA’s regulatory framework is designed to strike a balance between facilitating business growth and ensuring a robust regulatory environment within the IFSCs.

International Financial Services Centres Authority (IFSCA):

1. Formation and Purpose:
   • IFSCA is a regulatory body established by the Government of India.
   • It was formed in April 2020 with the aim of developing and regulating the financial services market in the International Financial Services Centre (IFSC) in India.
2. Jurisdiction:
   • IFSCA operates within the Gujarat International Finance Tec-City (GIFT City), which is India’s first operational IFSC.
   • GIFT City, located in Gandhinagar, Gujarat, is designed to become a global financial hub, providing a conducive ecosystem for international financial services.
3. Regulatory Functions:
   • IFSCA is entrusted with the task of regulating various financial services in the IFSC, including banking, insurance, capital markets, and other financial products and services.
   • It aims to create a robust and competitive environment for financial activities within the IFSC.
4. Role in Global Financial Markets:
   • IFSCA works towards positioning GIFT City as a competitive and attractive destination for global financial players.
   • It facilitates ease of doing business and provides a regulatory framework that aligns with international standards.
5. Regulated Entities:
   • IFSCA regulates various entities operating within the IFSC, such as banking units, insurance entities, capital market intermediaries, and other financial institutions.
6. Innovation and Development:
   • IFSCA encourages innovation in financial products and services to enhance the competitiveness of the IFSC.
   • It supports the development of a vibrant and dynamic financial ecosystem by fostering collaboration and partnerships.
7. International Collaboration:
   • IFSCA collaborates with international regulatory bodies and financial institutions to promote cross-border financial activities and maintain global best practices.
8. Legal Framework:
   • The regulatory framework for IFSCA is governed by the International Financial Services Centres Authority Act, 2019, and various regulations and guidelines issued by IFSCA.

15. Status of Education and Health Expenditure in India

Subject: Economy

Section: Public finance

1. Education Expenditure:
   • Despite high priority accorded, the share of education in total expenditure by the Centre is yet to reach the high of FY 2019-20.
   • Data from the Economic Survey (2022-23) reveals that the share of education in General Government (Centre and State together) expenditure from 2014-15 to 2022-23 has decreased to single digits.
   • Expenditure on education as a share of total budget expenditure was 3.3% in FY 2019-20, dropping to 2.11% in FY 2021-22, and seeing a slight rise to 2.5% in the subsequent years.
   • The decline in expenditure, especially in FY 2020-21, is attributed to the impact of the pandemic.
   • The National Education Policy 2020 (NEP 2020) emphasizes substantial investment in a strong public education system. NEP 2020 envisions increasing public investment in education to reach 6% of GDP, with both the Centre and States working together.
2. Health Expenditure:
   • Expenditure on health witnessed some rise due to the pandemic, but the overall picture is not highly encouraging.
   • The National Health Policy (NHP), 2017, aims to raise government health expenditure to 2.5% of GDP in a time-bound manner.
   • NHP also suggests that States should increase their health spending to at least 8% of their Budget.
   • Data from the Economic Survey shows that General Government expenditure on health increased to 6.9% in FY 2022-23 from 4.5% in FY 2014-15, but it is yet to reach the set target.
   • The rise in health expenditure during the pandemic underscores the importance of healthcare, but sustained efforts are needed to meet the long-term targets.
3. Challenges and Initiatives:
   • The decline in education and health expenditure in certain years, especially during the pandemic, points to challenges in maintaining consistent investment.
   • Initiatives like NEP 2020 and NHP 2017 highlight the commitment to increasing investment in education and health, but achieving the specified targets requires coordinated efforts from the Centre and States.
   • Public investment in education and health is crucial for building a strong and resilient nation, and continued attention to these sectors is essential for sustainable development.

The government needs to prioritize sustained and increased investment in education and health to ensure the well-being and development of the population.

National Education Policy 2020 (NEP 2020):

1. Introduction:
   • NEP 2020 is a comprehensive framework that outlines the vision and roadmap for transforming the education system in India.
   • It was approved by the Union Cabinet in July 2020, replacing the National Policy on Education (NPE) 1986.
2. Key Objectives and Focus Areas:
   • Universalization of Education: Ensuring access to quality education for all from early childhood to higher education.
   • Holistic Learning: Emphasizing holistic and multidisciplinary education, integrating vocational education, and fostering critical thinking and creativity.
   • Flexibility and Multilingualism: Promoting flexibility in choosing subjects, the medium of instruction, and a multilingual approach to education.
   • Technology Integration: Leveraging technology for personalized learning, teacher training, and educational governance.
   • Assessment Reforms: Shifting from rote learning to competency-based assessments, reducing the emphasis on board exams, and introducing continuous assessments.
3. Higher Education Reforms:
   • Integration of Higher Education: Breaking down silos between different streams of education and fostering multidisciplinary universities.
   • Research and Innovation: Encouraging research and innovation, establishing a National Research Foundation (NRF), and promoting a research ecosystem.
   • Global Outreach: Facilitating global integration by allowing top global universities to establish campuses in India and promoting the internationalization of education.
4. School Education Reforms:
   • Foundational Learning: Focusing on foundational literacy and numeracy in early grades.
   • Curriculum Rationalization: Reducing the curriculum load and promoting a more experiential and application-based approach.
   • Teacher Training: Enhancing teacher training and promoting continuous professional development.
5. Implementation and Way Forward:
   • The policy emphasizes phased implementation with a focus on collaboration between the Centre and States.
   • NEP 2020 aims to transform India’s education system to meet the needs of the 21st century and contribute to the nation’s socio-economic development.

National Health Policy 2017 (NHP 2017):

1. Introduction:
   • NHP 2017 is a policy document that sets the vision and strategic direction for health systems in India.
   • It replaces the previous National Health Policy, which was formulated in 2002.
2. Key Objectives and Focus Areas:
   • Universal Health Coverage (UHC): Ensuring access to affordable and quality healthcare services for all citizens.
   • Primary Healthcare: Strengthening primary healthcare as the foundation of the health system, with a focus on preventive and promotive healthcare.
   • Health and Wellness Centers: Transforming sub-centers and primary health centers into Health and Wellness Centers, providing a comprehensive range of services.
   • Health Infrastructure: Enhancing public health infrastructure and addressing human resource gaps.
   • Strategic Purchasing: Introducing strategic purchasing mechanisms for healthcare services.
3. Financing and Governance:
   • Public Health Expenditure: Increasing government spending on health to at least 2.5% of GDP over time.
   • Decentralized Health Planning: Encouraging decentralized health planning and strengthening district-level health systems.
   • Community Engagement: Promoting community participation in health planning and implementation.
4. Health Information Systems:
   • Digital Health: Embracing digital health initiatives to improve healthcare delivery and information management.
5. Regulatory Framework:
   • Regulatory Reforms: Streamlining regulatory frameworks for medical education, clinical practices, and drug prices.
6. Implementation and Monitoring:
   • The policy emphasizes collaborative efforts between the Centre and States for effective implementation.
   • NHP 2017 envisions a health system that meets the healthcare needs of all sections of the population and contributes to improved health outcomes.

16. Status of RoDTEP Scheme and US Anti-subsidy Duties

Subject: Economy

Section: External Sector

1. Scheme Overview:
   • The popular Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exporters in India is not set to be reworked by the Centre.
2. US Antisubsidy Duties Imposition:
   • Despite the US government imposing ant subsidy duties against the RoDTEP scheme, Indian officials clarify that the issue is not related to the World Trade Organization (WTO) compatibility of the scheme.
3. Documentation Challenge:
   • The challenge lies in the inability of exporters to provide adequate documents to US investigating teams, not the compliance of RoDTEP with WTO regulations.
   • Directorate General of Foreign Trade (DGFT) and Directorate General of Trade Remedies (DGTR) are collaborating to educate exporters on the documentation process.
4. WTO Compliance and Transparency:
   • RoDTEP is asserted to be fully WTO compliant and transparent in its determination of refund rates.
   • The scheme, introduced in January 2021, replaced the WTO-incompatible MEIS scheme, addressing transparency issues raised at the WTO.
5. Design of RoDTEP:
   • RoDTEP was designed carefully to ensure transparency, with refund rates based on embedded duties and taxes such as VAT on fuel, mandi tax, and duty on electricity used in manufacturing exported items.
6. Imposition of Antisubsidy Duties:
   • Both the US and the EU imposed countervailing (antisubsidy) duties on certain Indian products benefiting from RoDTEP payments.
   • The affected products include paper file folders, common alloy aluminum sheets, forged steel fluid end blocks (by the US), and specific graphite electrode systems (by the EU).
7. Documentation Streamlining Efforts:
   • Efforts are underway to familiarize exporters with the documentation process, emphasizing that RoDTEP payments are remissions and not incentives.
   • Exporters are urged to demonstrate that RoDTEP payments are in lieu of input taxes not covered by other schemes and are not export subsidies.
   • Steps are being taken for general awareness building among exporters to ensure clarity on the nature of RoDTEP payments and proper documentation.

Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme:

The RoDTEP scheme, introduced to replace the Merchandise Export from India Scheme (MEIS), has been notified by the Government of India, outlining rates and norms to support exporters.

Objective: To refund embedded central, state, and local duties or taxes that were not previously rebated, addressing the non-compliance issues with the World Trade Organization (WTO) rules.

Key Features:

1. Scope:
   • Covers 8,555 tariff lines, constituting around 75% of traded items and 65% of India’s exports.
   • Budgetary allocation of ₹12,454 crore for the fiscal year 2021-22.
2. Zero Rating of Exports:
   • Aims to achieve zero rating of exports by ensuring that domestic taxes are not exported.
3. Refund Mechanism:
   • Refunds encompass all taxes, including those levied by states and local bodies.
   • Refund rates, considered WTO-compliant, range from 0.5% to 4.3% of the Free On Board (FOB) value of outbound consignments.
4. Rate Variation:
   • Rates vary based on the product category. For example:
     • Lowest rates for items like chocolates, toffees, and sugar confectionery.
     • Highest rates for yarns and fibers.
     • Exclusion of certain sectors like steel, pharma, and chemicals.

5. International Standards and Automatic Refunds:
   • Enables Indian exporters to meet international standards for exports.
   • Provides affordable testing and certification within the country, reducing dependence on international organizations.
   • Facilitates automatic tax assessment and refunds for GST, streamlining the process for exporters.

The RoDTEP scheme aligns with India’s efforts to facilitate a conducive environment for exporters, promoting economic growth and enhancing the country’s position in the global market.