Daily Prelims Notes 23 March 2023
- March 23, 2023
- Posted by: OptimizeIAS Team
- Category: DPN
Daily Prelims Notes
23 March 2023
Table Of Contents
- Deepening green tech divide between Global North, South to worsen economic inequality, warns UN
- Energy storage has a vital role to play in the green transition of BIMSTEC countries
- Kerala’s bid to capture wild jumbo ‘Arikomban’
- SC to hear plea against remission in bilkis Bano case
- 6G Technology
- Govt will attempt to open corridor to Sharda peeth in PoK for devotees
- Exercise Cobra Warrior
- Chandrayaan 3 mission to be launched in mid-2023: ISRO Chief
- Solomon Islands
- Centre unlikely to back Manipur govt move to pull out of Kuki truce pact
- PM Vishwakarma Kaushal Samman (PMVIKAS)
- Bond
- Sectors of economy
- Schemes and Programmes to attract youth in agriculture
- Famous as Ayurvedic paradise, Gandhamardan hill range in Odisha gets ‘biodiversity heritage site’ tag
- HAL offer for sale opens today
1. Deepening green tech divide between Global North, South to worsen economic inequality, warns UN
Subject: International relations
Section: International organization
Context: Developed countries benefit the most from green technologies such as artificial intelligence, Internet of Things and electric vehicles and this can deepen global economic inequality, warned the United Nations Conference on Trade and Development (UNCTAD).
More on the News:
- Developing countries may miss out on the economic opportunities resulting from green technologies if governments and international bodies do not take decisive action.
- The total exports of green technologies from developed countries jumped to more than $156 billion in 2021 from about $60 billion in 2018, the report found.
- At the same time, exports from developing countries rose to only about $75 billion from $57 billion.
- According to the ‘frontier technology readiness index’ included in this report, only a few developing countries have the capacity needed to take advantage of frontier technologies such as blockchain, drones and solar power.
- Although developing countries are the least prepared to use frontier technologies, several economies in Asia have made important policy changes that have enabled them to perform better than expected according to their gross domestic product per capita.
- India remains the greatest performer, ranking at 67 positions better than expected, followed by the Philippines (54 positions better) and Vietnam (44 better).
- UNCTAD calls on governments in developing countries to align environmental, science, technology, innovation and industrial policies. It urges them to prioritise investment in greener and more complex sectors, to provide incentives to shift consumer demand towards greener goods and to boost investment in research and development.
United Nations Conference on Trade and Development
- UNCTAD stands for the United Nations Conference on Trade and Development, and is a body of the United Nations system that focuses on promoting economic development, particularly in developing countries.
- UNCTAD was formed in 1964, as part of the United Nations system. It was established to promote economic development, particularly in developing countries, and to facilitate trade and investment.
- The objectives of UNCTAD include promoting international trade, reducing trade barriers, supporting developing countries in their efforts to integrate into the global economy, and fostering sustainable development.
- UNCTAD provides research, analysis, and technical assistance to developing countries, to help them improve their trade and investment policies. It also provides a forum for dialogue between developed and developing countries on trade and development issues.
- UNCTAD has 195 member states and is headquartered in Geneva, Switzerland.
- UNCTAD conducts research and analysis on various trade and development issues, and publishes reports and policy recommendations. It also provides technical assistance and capacity building to developing countries, and organizes conferences and meetings on trade and development issues.
- UNCTAD works closely with the World Trade Organization (WTO) and provides technical assistance to developing countries in their WTO negotiations.
- Flagship reports:
- Trade and Development Report
- World Investment Report
- The Least Developed Countries Report
- Economic Development in Africa Report
- Information Economy Report
- Technology and Innovation Report
- Review of Maritime Transport
2. Energy storage has a vital role to play in the green transition of BIMSTEC countries
Subject : International relations
Section: International organization
Context: The growing energy demands in the emerging economies of countries in the region will require that the energy transitions in the region be resource-efficient and based on the timely need for energy.
More on the News:
- Energy storage systems can store energy from variable sources such as solar and wind until required, thereby allowing the integration of more renewable energy into the system. They discharge when they release the energy back into the grid.
- Storage technologies are essential to replace fossil fuel-based generations with 100 per cent renewable energy-based energy system sources. Lithium-ion batteries are currently the predominant storage technology solutions for large-scale plants to ensure a reliable renewable energy source. It should be cost-effective and long-lasting for renewable power — charging and discharging many thousand times.
- There are many storage techniques to address the issues of intermittencies of renewable energy systems, such as compressed air storage, pumped hydro-electricity storage, advanced rail energy storage, stacked blocks, flywheels, lithium-ion battery storage, liquid air energy storage, pumped heat electrical storage, redox flow batteries, superconducting magnetic energy storage and methane.
- BIMSTEC countries have immense potential for regional grid balancing in the context of large-scale renewable energy growth due to diversity in supply sources. For example, the generation resources in Nepal and Bhutan are predominantly hydro, and Myanmar has huge untapped hydropower potential.
- With the rise of power markets due to recent reforms in power markets in India and the development of ancillary service markets, a market-based approach to regional grid balancing will become the preferred choice to manage the intermittency in the most economical manner in the BIMSTEC regional context.
- While there is large potential of hydro energy resources in the region, it is important to develop these resources in a sustainable and environmentally friendly manner with limited environmental degradation.
Pumped Hydroelectric Energy Storage:
- Pumped Hydroelectric Energy Storage (PHES) is a form of energy storage that involves pumping water from a lower reservoir to a higher reservoir during periods of low electricity demand.
- Working Principle: During periods of low electricity demand, excess electricity is used to pump water from a lower reservoir to a higher reservoir. When demand for electricity increases, the water is released from the higher reservoir, and flows back to the lower reservoir through turbines, generating electricity.
- PHES systems can store large amounts of energy, ranging from a few megawatts to several gigawatts.
- PHES is a reliable and cost-effective method of energy storage, with a long lifespan. It is also environmentally friendly, as it does not produce greenhouse gas emissions during operation.
- PHES is used to balance the supply and demand of electricity, and to provide backup power during emergencies. It is also used to store excess energy from renewable sources such as wind and solar power.
- PHES systems require large amounts of land, water, and capital investment. They may also have an impact on the environment and wildlife, particularly during the construction phase.
- Examples in India: Some examples of PHES in India are the Srisailam Dam in Andhra Pradesh, the Koyna Hydroelectric Project in Maharashtra, and the Tehri Dam in Uttarakhand.
- Future prospects: PHES is expected to play an important role in the transition to renewable energy, as it can store excess energy from wind and solar power. It is also expected to become more cost-effective in the future, as the technology continues to improve.
For more details https://optimizeias.com/bimstec-region-can-provide-green-affordable-energy-access-to-all/
3. Kerala’s bid to capture wild jumbo ‘Arikomban’
Subject : International relations
Section: Species in news
Context: People of Santhanpara and Chinnakanal panchayats in Idukki have been demanding the capture of Arikompan, which has a history of trampling ten people to death and destroying around 60 houses and shops.
More on the News:
- Kerala Forest Department has made sweeping arrangements to capture a wild elephant terrorisingthe high ranges of the Idukki district by killing people and raiding shops for grains for at least the last five years.
- The elephant, known as Arikomban (rice tusker), a name conferred on the rogue elephant by local people due to its habit of raiding shops for rice) would be tamed in the operation set to begin on March 25 and converted into a kumki (captive tusker used for operations against rogue elephants)
- The department has already begun mobilising its four kumki elephants from Wayanad to Idukki to herd the tranquilised rogue pachyderm to truck and later into a cage already constructed at the elephant training centre.
- Earlier this year, forest officials captured a rogue elephant at the centre of man-animal conflict at Dhoni in Palakkad. The rogue tusker, code-named Palakkad Tusker-7 (P-7), was shot with tranquiliser darts.
Reasons for the conflict:
- Growing human/animal populations overlap with established wildlife/human territory, creating a reduction of resources.
- Fragmentation of habitats and corridors due to legal and illegal changes in land use – clearances for mining or encroachment for agriculture.
- Agricultural Expansion and Changing cropping patterns that attract wild animals to farmlands.
- Habitat degradation due to the growth of invasive alien species, etc.
- Infrastructure development, Climate Change, etc.
Human-Wildlife conflict management:
- Understanding the conflict: Research all aspects of the conflict profile to understand the context for conflict in any given situation (hotspot mapping, community attitudes, spatial and temporal characteristics, etc.)
- Mitigation: Reducing the impacts of HWC after it occurs (compensation, insurance, alternative livelihoods, etc.)
- Response: Addressing an on-going HWC incident (response teams, reporting mechanisms, standard operating procedures,)
- Prevention: Stopping or preventing HWC before it occurs (fences, early detection tools, safe working environments,)
- Policy: Enabling HWC management through protocols, principles, provisions, and measures stipulated in the legislation and undertaken by authorities (international and national law, national and local HWC management plans, spatial plans, etc.)
- Monitoring: Measuring the performance and effectiveness of HWC management interventions over time (data collection, information sharing, adaptive management, etc.)
4. SC to hear plea against remission in bilkis Bano case
Subject : Polity
Section: Judiciary
Concept :
- Chief Justice of India D.Y. Chandrachud told Bilkis Bano that a Special Bench would be formed to hear her petition, challenging the release of 11 men sentenced to life imprisonment for her gang rape during the 2002 riots.
Background
- Already, a Review Bench led by Justice Rastogi had dismissed a petition filed by Ms. Bano to review a May 2022 judgment of the court.
- This judgment had cleared the path for Gujarat to consider and release the convicts, who were serving life sentence in her case, under the State’s Premature Release Policy of 1992.
- The Gujarat government had argued that the decision to release the convicts prematurely had been taken after following the procedure established by law.
Review petition by Bilkis Bano
- Her petition had wanted the court to reconsider its judgment which permitted the Gujarat government to apply the State’s Premature Release Policy of 1992.
- Through her review petition, Bano said the remission policy of the State of Maharashtra, where the trial happened, and not Gujarat would have governed the case.
- In May 2022, the Supreme Court ruled that there cannot be a concurrent jurisdiction of two State governments on the issue of remission.
- Premature release of a convict has to be considered in terms of the policy applicable in the State where the crime was committed
- Hence, Gujrat government’s remission policy was applied for the release of these convicts.
Power of SC to review its judgments
- Constitutional provision :
- A ruling by the Supreme Court is final and binding. The SC rarely entertains reviews of its rulings.
- However, Article 137 of the Constitution grants the SC the power to review its judgments or orders.
- A review petition must be filed within 30 days of pronouncement of the judgment.
- Grounds for review :
- In a 2013 ruling, the Supreme Court itself laid down three grounds for seeking a review of a verdict it has delivered:
- the discovery of new and important matter or evidence which, after the exercise of due diligence, was not within the knowledge of the petitioner or could not be produced by him;
- mistake or error apparent on the face of the record; or
- any other sufficient reason.
- In subsequent rulings, the court specified that “any sufficient reason” means a reason that is analogous to the other two grounds.
- In another 2013 ruling (Union of India v. Sandur Manganese & Iron Ores Ltd), the court laid down nine principles on when a review is maintainable.
- Procedure followed while hearing the review cases :
- Except in cases of death penalty, review petitions are heard through circulation by judges in their chambers, and not in an open court.
- Lawyers make their case through written submissions and not oral arguments.
- The judges who passed the verdict decide on the review petition as well.
- What if a review petition fails?
- In Roopa Hurra v Ashok Hurra (2002), the court itself evolved the concept of a curative petition, which can be heard after a review is dismissed.
- It is meant to ensure there is no miscarriage of justice, and to prevent abuse of process.
- A curative petition is also entertained on very narrow grounds like a review petition, and is generally not granted an oral hearing.
For notes on remission of prisoners by state government, refer – https://optimizeias.com/remission-of-prisoners/
Subject : Science and technology
Section: Awareness in IT and Computers
Concept :
- Minister Ashwini Vaishnaw has said that India registered 127 patents for 6G Technology.
About 6G Technology
- G (sixth-generation wireless) is the successor to 5G cellular technology.
- 6G networks will be able to use higher frequencies than 5G networks and provide substantially higher capacity and much lower latency.
- One of the goals of 6G internet will be to support one microsecond-latency communication.
- This is 1,000 times faster — or 1/1000th the latency — than one millisecond throughput.
- Working in conjunction with artificial intelligence (AI), the computational infrastructure of 6G will autonomously determine the best location for computing to occur; this includes decisions about data storage, processing and sharing.
- 6G is expected to support data rates of 1 terabyte per second.
- It seeks to utilize the terahertz band of frequency which is currently unutilized.
- Terahertz waves fall between infrared waves and microwaves on the electromagnetic spectrum.
- These waves are extremely tiny and fragile, but there’s a huge amount of free spectrum up there that would allow for spectacular data rates.
India’s 6G Roadmap
- The Bharat 6G project will be implemented in two phases and the government has also appointed an apex council to oversee the project and focus on issues such as
- Standardisation,
- Identification of the spectrum for 6G usage,
- Create an ecosystem for devices and systems, and
- Figure out finances for research and development, etc.
- In phase one (from 2023 to 2025), support will be provided to explorative ideas, risky pathways and proof-of-concept tests.
- Ideas and concepts that show promise and potential for acceptance by the global peer community will be adequately supported to develop them to completion, leading to commercialisation as part of phase two (from 2025 to 2030).
- To fund research and innovation on 6G, the document recommended the creation of a corpus of Rs 10,000 crore to facilitate various funding instruments such as grants, loans, VC fund, etc.
- To decide on standardisation around 6G and related technologies, the document called for India to take on a greater role in various international bodies such as 3GPP, ITU, IEC, and IEEE.
6. Govt will attempt to open corridor to Sharda peeth in PoK for devotees
Subject : History
Section: Art and Culture
Concept :
About :
- Sharada Peeth is a ruined Hindu temple and ancient centre of learning located in the Neelum Valley of Pakistan Occupied Kashmir.
- It is situated in the valley of Mount Harmukh, believed by Kashmiri Pandits to be the abode of Shiva.
- Sharada Peeth translates to “the seat of Sharada“, the Kashmiri name for the Hindu goddess Saraswati.
- “Sharada” could be also related to the proto-Nostratic terms “sarv”, which means “flow or stream”, and daw (blow, tip or rock), because it was located at the confluence of three streams.
- It was probably commissioned by Lalitaditya Muktapida though no definitive evidence exists in favor.
- Al-Biruni recorded the place for the first time, as a revered shrine housing a wooden image of Sharda — however, he had never ventured into Kashmir and based his observations on hearsay.
- Location:
- It is located in the village of Sharda in the valley of Mount Harmukh, along the Neelam River in the Pakistani-administered territory of Azad Kashmir. It lies 16 miles to the northwest of the Line of Control.
- As a Centre of Learning: Between the 6th and 12th centuries CE, it was one of the foremost centres of higher learning, hosting scholars such as Kalhana, Adi Shankara, and Vairotsana.
- It is also said to be where Paṇini and Hemachandra completed and stored their writings on Sanskrit grammar.
Religious significance:
- Sharda is the most revered religious place for Kashmiri Pandits. They believe that Sharada in Kashmir is a tripartite embodiment of the goddess Shakti: Sharada (goddess of learning), Saraswati (goddess of knowledge), and Vagdevi (goddess of speech).
- It is one of the 18 Maha Shakti Peethas throughout South Asia that commemorate the location of fallen body parts of the Hindu deity Sati.
Subject :International Relations
Section: Msc
Concept :
- Over the past three weeks, five Indian Air Force (IAF) Mirage2000 aircraft have been undertaking joint training involving high intensity, large force, and tactical air war fighting operations with six other Air Forces as part of the multilateral ‘Exercise Cobra Warrior’ under way in the U.K.
About the exercise:
- The Exercise Cobra Warrior is a multilateral Air exercise in which Air Forces from Finland, Sweden, South Africa, the United States of America and Singapore would also be participating.
- The exercise aims to participate in fighter aircraft engagements and learn from the best practices of various Air Forces.
- The IAF will be participating in the exercise with five Mirage 2000 fighters, two C-17 Globemaster III and an IL-78 mid-air refueller aircraft.
- Other Joint Exercises between India and the UK:
- Navy: Konkan
- Air Force: Indradhanush
- Army: Exercise Ajeya Warrior
8. Chandrayaan 3 mission to be launched in mid-2023: ISRO Chief
Subject: Science and technology
Section: Space technology
Concept :
- Indian Space Research Organization (ISRO) Chairman S. Somanath announced that the launch of Chandrayaan-3 and the Aditya L1 will likely take place by the middle of 2023at the inagural talks of 4th Indian planetary conference.
- Chandrayaan-3 is India’s third lunar mission and Aditya L1 is India’s first-ever solar mission.
- ISRO is also discussing a possible mission to the moon with the Japan Aerospace Exploration Agency (JAXA).
- ISRO Chairman also confirmed that there is a good opportunity to launch a mission to explore Venus by 2028.
4th Indian planetary conference
- TheIndian Planetary Science Association (IPSA) is hosting the 4th Indian Planetary Science Conference (IPSC-2023) at the Physical Research Laboratory in Ahmedabad.
- It is a three-day conference scheduled for March 22-24, 2023.
- In the context of upcoming planetary missions to the Moon, Mars, Venus, and other planetary bodies that will be launched by the Indian Space Research Organisation (ISRO), DOS, IPSA was established to promote planetary science activities in India with an important task to create a much-needed planetary science community in India.
- With the participation of all stakeholders, IPSA will encourage Indian scientists and academies to develop a long-term vision.
- The primary goal of IPSC is to provide a single platform for planetary researchers to present and discuss their research accomplishments and thus drive India’s planetary exploration.
- The IPSC-2023 conference will discuss the Indian planetary missions that have already been launched, and the science that has been derived from them, and provide a framework for future Indian missions and related challenges in instrument development and exploration.
For notes on Chandrayaan 3 Mission, refer – https://optimizeias.com/chandrayaan-3-3/
For notes on Aditya L1 Mission, refer – https://optimizeias.com/aditya-l1-support-centre-asc/
Subject : Geography
Section: Human Geography
Concept :
- A state-backed Chinese company recently won a contract to develop a key port in the Solomon Islands.
Solomon Islands:
- It is an island country consisting of six major islands and over 900 smaller islands in Oceania.
- It is situated in the southwest Pacific Ocean, approximately 2,000 km to the northeast of Australia.
- Capital: Its capital, Honiara, is located on the largest island, Guadalcanal.
- The terrain is mountainous and heavily forested.
- More than 90% of the islanders are ethnic Melanesians.
- Once a British protectorate, the Solomon Islands achieved independence as a republic in 1978.
- Language:
- There are 63 distinct languages in the country, with numerous local dialects.
- English is the official language, but Pijin is the common language for the majority of people.
10. Centre unlikely to back Manipur govt move to pull out of Kuki truce pact
Subject: Geography
Section: Human Geography
Concept :
- The Centre is unlikely to support the Manipur government’s decision to withdraw from a truce agreement with three Kuki-Zomi insurgent groups.
- The Centre’s reluctance on the matter has been communicated to the state government although the former agrees with the latter’s concern over the recent activities of some Kuki groups.
Background:
- On March 10,2023 the Manipur government decided to withdraw from the Suspension of Operations (SoO) agreement with two militant groups, Kuki National Army (KNA) and Zomi Revolutionary Army (ZRA), alleging their involvement in inciting agitation among forest encroachers.
Kuki Insurgency
- The Kuki insurgency began after ethnic clashes with the Nagas of Manipur in the early 1990s, with the Kukis arming themselves against Naga aggression.
- The major reason for clashes is the land claimed by the Kukis as their “homeland” in the Manipur hills overlaps with the imagined Naga homeland of Greater Nagaland or Nagalim.
- Nearly 30 Kuki insurgent groups operate in Manipur, of which 25 are under tripartite SoO with the Government of India and the state.
- As many as 17 are under the umbrella group Kuki National Organisation (KNO), and 8 are under the United People’s Front (UPF).
- The Kuki outfits initially demanded a separate Kuki state but now seek a ‘Kukiland territorial council.’
Kuki National Army :
- The Kuki National Organisation/ Kuki National Army (KNO/KNA) was founded on February 24, 1988.
- The objective of the group is to bring together all the areas inhabited by the Kuki tribe.
- These areas are spread across Manipur and Myanmar.
- The name KNO/KNA (B) was coined and is constituted by the Kukis of Burma. The KNO/KNA, meanwhile, operates in India.
Zomi Revolutionary Army (ZRA) :
- The ZRA is a militant group operating in the northeastern Indian state of Manipur.
- The group was formed in 1996 with the aim of securing greater autonomy for the Zomi people, an indigenous community living in the region.
- The ZRA is believed to be a splinter group of the larger Zomi Nationalist Movement (ZNM), which was active in the 1980s and 1990s.
Suspension of Operations (SoO) Pact
- The SoO agreement with Kuki was signed in 2008 as a ceasefire agreement between the Indian government and various Kuki militant groups operating in the northeastern states of Manipur and Nagaland.
- Under the agreement, the Kuki militant groups agreed to stop carrying out violent activities and come to designated camps to be monitored by security forces.
- In return, the Indian government agreed to suspend its operations against the Kuki groups.
Terms of SoO Pact:
- The Joint Monitoring Group (JMG) oversees the effective implementation of the pact.
- Security forces, including state and central forces, cannot launch operations, nor can the underground groups.
- Signatories of UPF and KNO abide by the Constitution of India, laws of the land, and territorial integrity of Manipur.
- They are prohibited from committing atrocities and extortion.
- The militant cadres are confined to designated camps, with arms deposited in a safe room under a double-locking system.
- The groups are given arms only to guard their camps and protect their leaders.
11. PM Vishwakarma Kaushal Samman (PMVIKAS)
Subject :Schemes
Concept:
- Prime Minister Vishwakarma Kaushal Samman (PM-VIKAS) scheme has been announced for traditional artisans and craftsmen in the budget 2023-24.
- A package of assistance has been conceptualized for encouraging traditional arts and handicrafts.
- It will enable the country’s artisans to improve the quality, scale, and reach of their products, integrating them with the Micro, Small and Medium-scale Enterprises (MSME) value chain
- To help the artisans to improve their products’ quality, scale, and reach by providing financial support, advanced skill training in modern digital techniques, and efficient green technologies and thereby integrating them with local and global markets through the Micro, Small and Medium Enterprises (MSME) value chain linkage
The components of the scheme will include access to
- Financial support
- Access to advanced skill training to increase the calibre
- Knowledge of modern digital techniques and efficient green technologies
- Brand promotion
- Linkage with local and global markets
- Digital payments
- Social security
Subject: Economy
Section: Financial markets
Concept:
- Bond is a fixed-income instrument that represents a loan from an investor to a borrower.
- It is a contract between the investor and the borrower, where the borrower uses the money to fund its operation and the investors receive interest on the investment.Bonds are high-security debt instruments that fall under the fixed income asset class.
- It enables an entity to raise funds to fulfill the capital requirement for funding various projects.
- These are issued by the government, corporates, municipalities, states, and other entities to fund their projects may be backed or not backed by assets.
- These bonds have a maturity date (tenure) and when once that is attained, the issuer needs to pay back the amount along with a part of the profit to the investor.
Bonds have three components that are used to calculate a bond yield:
- The principal
- The coupon rates
- The maturity dates
When the borrower issues bonds, an agreement is made between the borrower and the lender where the issuer of the bond promises to pay back the principal amount on the maturity date. The issuer also pays the interest on the money borrowed (Coupon) throughout the tenure.
Features of a Bond
- Issue Date: The issue date of bonds is the date from which the interest starts accruing.
- Coupon Rate: The interest rate at which a bond is issued, which the company is liable to pay to the investors is referred as the coupon rate. Coupon payments are made semi-annually or annually.
- Maturity Date: It is the date on which the issuer pays back the Bonds’ face value to the investor. Before investing, check the maturity period of the Bond and invest as per your financial goal.
- Taxation: Certain Bonds provide tax benefits, while there are few corporate bonds that levy tax on their Bonds. Also, certain Bonds issued by the government, municipality Bonds, and a few more don’t impose a tax on the profit earned.
Advantages of Bonds
- Portfolio Diversification: Diversification can provide you with better risk-adjusted returns. Also, diversification with bonds can help preserve capital for equity investors during times when the stock market is slump.
- Lower Risk: Bonds are long-term investment instruments with low-risk associated.
- Fixed Return on investment: Bonds pay interest at regular intervals and also, when Bonds mature, the investor receives the principal amount. In Bonds, the investor knows the exact return he/she will be getting.
Different types of Bonds
These can be divided by the rate, type of interest, or coupon payment.
- Callable Bonds: When a Bond issuer calls out his right to redeem the Bond even before it reaches its maturity, it is referred to as a Callable Bond. This option is exercised by the Bond issuer. An issuer can convert a high debt bond into a low debt bond.
- Fixed-rate Bonds: Bonds whose coupon rate remains the same through the course or tenure of the investment, it is referred to as Fixed-rate Bonds.
- Floating-rate Bonds: Bonds whose coupon rate vary during the tenure of the investment, then it is referred to as Floating-rate Bonds.
- Zero Coupon Bonds: Zero coupon bonds When the coupon rate is Zero and the Bonds issuer pays only the principal amount to the investor on maturity. It is called Zero-coupon Bonds.
- Puttable Bonds: These are those Bonds where an investor sells their bond and get their money back before the maturity date, then it is called as Puttable Bonds.
What is YMT (Yield To Maturity)? It is one of the ways through which one can price Bonds. It is the total of expected return for an investor if the bond is held till maturity. It is a long-term yield but represented as an annual rate
Concept:
- The economy is divided into the domestic economy and the rest of the world. The domestic economy comprises all resident economic units (entities).
- Institutional (economic) unit is an economic entity capable, in its own rights, of institution owning assets; incurring liability engaging in economic activities and in transactions with other entities having a complete set of accounts.
There are three sectors of domestic economy:
I. General government sector includes All departments, establishments, and bodies of its central and local governments located in its territory; the embassies, consulates, representations, military establishments of the particular country’s general government located elsewhere.
- The sub-sectors: Central government, Regional government, Local government ,Social security funds
II. Real sector: It consists of enterprises (nonfinancial corporations), households and nonprofit institutions serving households, in some cases combined into one subsector named “Other resident sector.
a. Individuals or groups of persons in the form of households:
- They share the same living accommodation; pool some or all of their resources, income and wealth; consume certain types of goods and services collectively and may engage in production activity.
- In the case of activity there is no segregation between the inventory of the enterprise created by the household and the owners’ private inventory, i.e. such an enterprise is subject to unlimited liability.
- The four sub sectors: Self-employed or entrepreneurs (employers), Own-account workers; Employees, Recipients of property and transfer income
b. Nonprofit Institutions Serving Households Sector
- This sector comprises noncommercial organizations engaged in production of non market goods and services.
- These goods and services are provided to individual households or to the entire community without charge or at prices that are not economically significant. The institutions that are controlled and financed mainly by government units are not included in this sector, since they are included into the general government sector.
III. Financial sector: The financial sector can be divided into two major sectors: Financial intermediaries, and Financial auxiliaries.
A) Auxiliary financial activities: Those corporations that engage in provision of auxiliary financial services are not financial intermediaries since they do not incur liabilities on their own account for acquiring financial assets, but provide services that are auxiliary to financial intermediation.
- The corporations are: Stock exchanges and organized foreign exchange and securities markets, Depositaries and clearing organizations, Brokers and dealers; Foreign currency exchange companies, Nonprofit institutions, Organizations dealing with financial guarantees; Organizations dealing with financial derivatives, etc.
B) Financial intermediation may be defined as a productive activity in which an institutional unit incurs liabilities on its own account to acquire financial assets through financial market transactions.
14. Schemes and Programmes to attract youth in agriculture
Concept:
Schemes/programmes to attract youth towards agriculture and other related industries and for the development of entrepreneurship:
Department of Agriculture & Farmers Welfare (DA&FW), Ministry of Agriculture & Farmers Welfare, implements:
- Establishment of Agri-Clinics and Agri-Business Centers (AC&ABC)
- Skill training programmes (minimum 200 hours’ duration) for Rural Youth and Farmers including women farmers
- Skill Training of Rural Youth (STRY)
- Sub Mission on Agricultural Mechanization (SMAM)
- Remunerative Approaches for Agriculture and Allied Sectors Rejuvenation (RKVY-RAFTAAR) to promote Agri-Startups
- Certified Farm Advisor/Certified Livestock Advisor programme
- Post Graduate Diploma in Management (Agri Business Management) [PGDM (ABM)]
Department of Agricultural Research and Education (DARE) through Indian Council of Agricultural Research (ICAR) implements the following
- Technology Assessment and Demonstration for its Application and Capacity Development through Krishi Vigyan Kendras (KVKs).
- Attracting and Retaining Youth in Agriculture (ARYA)
Ministry of Skill Development and Entrepreneurship
Various initiatives implemented through Agriculture Skill Council of India (ASCI), a subsidiary under Ministry of Skill Development and Entrepreneurship are furnished below:
- Entrepreneurship training
- Apprenticeship programme
- Vocationalization of School Education
- Vocationalization of Higher Education (UGC affiliated Colleges)
The Banks and Lending Institutions
- The loan to farmers including youth for various activities of agriculture & allied sectors like crop loan, infrastructure creation through Agri Infrastructure Fund (AIF), Kisan Credit Card (KCCs), value addition entrepreneurships under Pradhan Mantri Formalization of Micro Enterprises (PM FME), Farmer Producer Organization (FPOs), Self Help Group (SHGs) etc
- During 2022-23, the Government has increased the agricultural credit target to Rs. 18.00 lakh crore from Rs. 16.50 lakh crore during 2021-22.
Subject : Environment
Section: Biodiversity
Context: The picturesque Gandhamardan hill range of Odisha has been accorded the tag of ‘biodiversity heritage site’ — the third such spot in the state after Mahendragiri hills in Gajapati and Mandasaru gorge in Kandhamal district.
Issuing a notification to this effect, the Forest, Environment and Climate Change department stated that a total 18,963.898 hectares (189.639 square km) of Gandhamardan hill system, spread over 12,431 hectares in Bargarh and 6,532 hectares in Balangir, has been declared a ‘biodiversity heritage site’ as per the provisions of Odisha Biodiversity Rules – 2012 to protect its fragile ecosystem.
Why Gandhamardan hill is special?
A treasure trove of medicinal plants, the hill system within Gandhamardan reserve forest is considered the ‘Ayurvedic paradise’ of the state.
As per the government notification, Gandhamardan hill range is famous as ‘Ayurvedic paradise’ of Odisha’ where traditional knowledge holders have been collecting wild medicinal plants to treat different diseases and ailments.
Two historical monuments — Nrusinghanath temple on the northern slope of the hill and Harishankar temple on the southern slope of the hill — have immense cultural significance, it stated.
However, the rich biological resources of the cultural landscape are under pressure due to anthropogenic and climatic factors, while the traditional knowledge associated with the bio-resources is also declining, necessitating long-term protection and conservation of the hill range, the department underlined.
Process:
The Odisha Biodiversity Board (OBB) had sent a proposal to the state government in December last year to declare the threatened and ecologically sensitive landscape as a ‘Biodiversity Heritage Site’ for long-term protection, conservation and management of biological resources of the hill range having socio-economic, ecological and biological significance.
After the Board received proposals from the Biodiversity Management Committee (BMC) of Nandupalla, Telenpalli, Bartunda, Mithapalli as well as proposals from DFO Balangir and Bargarh and other stakeholders to declare the hill range as a biodiversity heritage site, a detailed inventory of the flora and fauna in the hill ecosystem was prepared.
The board found 1,700 species of plants and animals — 1,200 species of plants and 500 species of animals — in the hill ecosystem. Besides, around 209 trees, 135 shrubs, 473 herbs, 77 climbers and 300 species of medicinal plants were also recorded in the hill ecosystem of which 18 species are tagged as threatened and one species as endemic.
Other Bio heritage sites of Odissa
Notably, the Odisha government had notified Mahendragiri as the ‘biodiversity heritage site’ in November 2022, while the Mandasaru gorge in Kandhamal district was the first landscape to be notified as bio heritage site in the state in 2019
Biodiversity Heritage Sites (BHS)-
- Under Section 37 of Biological Diversity Act, 2002 the State Government in consultation with local bodies may notify the areas of biodiversity importance as Biodiversity Heritage Sites.
- The Biodiversity Heritage Sites are the well defined areas that are unique, ecologically fragile ecosystems – terrestrial, coastal and inland waters and, marine having rich biodiversity comprising of any one or more of the following components:
- richness of wild as well as domesticated species or intra-specific categories
- high endemism
- presence of rare and threatened species
- keystone species
- species of evolutionary significance
- wild ancestors of domestic/cultivated species or their varieties
- past preeminence of biological components represented by fossil beds
- having significant cultural, ethical or aesthetic values; important for the maintenance of cultural diversity (with or without a long history of human association with them)
- Areas having any of the following characteristics may qualify for inclusion as BHS.
Biodiversity Heritage Site (BHS) – District/State
- Nallur Tamarind Grove – Bangalore, Karnataka
- Hogrekan – Chikmagalur, Karnataka
- University of Agricultural Sciences, – Bengaluru, Karnataka
- Ambaraguda – Karnataka
- Glory of Allapalli – Maharashtra
- Tonglu BHS and Dhotrey BHS under the Darjeeling Forest Division – Darjeeling, West Bengal
- Mandasaru – Odisha
- Dialong Village – Manipur
- Ameenpur lake – Telangana
- Majuli – Assam
- Gharial Rehabilitation Centre – Lucknow, Uttar Pradesh
- Chilkigarh Kanak Durga – West Bengal
- Purvatali Rai – Goa
- Naro Hills – Madhya Pradesh
- Asramam – Kerala
- Schistura Hiranyakeshi – Sindhudurg, Maharashtra
- Arittapatti – Tamilnadu
People’s Biodiversity Registers (PBR):
- The PBRs focus on participatory documentation of local biodiversity, traditional knowledge and practices.
- The register shall contain comprehensive information on the availability and knowledge of local biological resources, their medicinal or any other use or any other traditional knowledge associated with them.
- They are seen as key legal documents in ascertaining the rights of local people over the biological resources and associated traditional knowledge.
16. HAL offer for sale opens today
Subject: Economy
Section: Financial Market
Concept:
Offer For Sale (OFS)
- It is a method that allows the promoter of a company to sell their shares to institutional and retail investors through exchanges.
IPO, OFS, and FPO – How are they different?
IPO
Initial Public Offering is when a company is introduced into the publicly traded stock markets for the first time. In the IPO, the company’s promoters choose to offer a certain percentage of shares to the public. The reason for going public and the process of an IPO is explained in detail in Chapters 4 and 5.
The primary reason for going public is to raise capital to fund expansion projects or cash out early investors. After the IPO is listed on the exchange and is traded in the secondary market, promoters of the company might still want additional capital. There are three options available: Rights Issue, Offer for Sale and Follow-on Public Offer.
Rights Issue
The promoters can choose to raise additional capital from its existing shareholders by offering them new shares at a discounted price (generally lower than Market Price). The company offers new shares in the proportion of shares already held by the shareholders. For example, a 1:4 Rights Issue would mean that every 4 shares held 1 additional share is offered. Although this option looks good, it limits the company to raise the capital from a small number of investors who are already holding shares of the company and might not want to invest more. A rights issue leads to the creation of new shares that are offered to the shareholders, which dilutes the value of the previously held shares.
OFS
The promoters can choose to offer the secondary issue of shares to the whole market, unlike a rights issue restricted to existing shareholders. The Exchange provides a separate window through the stockbrokers for the Offer for Sale. The exchange allows a company to route funds through OFS only if the Promoters want to sell out their holdings and/or maintain minimum public shareholding requirements (Govt. PSU have a public shareholding requirement of 25%).
There is a floor price set by the company, at or above which both Retail and Non-Retail investors can make bids. The shares are allotted, if bids are at a cut-off price or above will be settled by the exchange into the investor Demat account in T+1 days.
FPO
An FPO also has the same intent of raising additional capital after it has been listed but follows a different mechanism for applying and allotting shares. Shares can be diluted, and fresh shares can be created and offered in an FPO. Just like an IPO, an FPO requires that Merchant Bankers be appointed to create a Draft Red Herring Prospectus which has to be approved by SEBI after which bidding is allowed in a 3-5 day period. Investors can place their bids through ASBA and shares are allotted based on the Cut-off Price decided after the book-building process. Since the introduction of OFS in 2012, FPOs are seldom used due to the lengthy approval process.
The company decides on a Price Band, and the FPO is publicly advertised. Prospective investors can bid for the issue using the ASBA portal through Internet Banking or apply offline through a Bank Branch. After the bidding process is complete, the cut-off price is declared based on the demand and the additional shares allotted are listed on the exchange for trading in the secondary markets.
An example of an FPO is of Engineers India Ltd which underwent an issue in February 2014 with Rs 145-Rs 150. The issue was oversubscribed by 3 times. The shares on the day of the starting date of the issue were trading at Rs 151.1. The lower price band was at a 4.2% discount from the market price.
Difference between OFS and FPO
- An OFS is used to offload Promoters’ shares while an FPO is used to fund new projects.
- Dilution of shares is allowed in an FPO leading to change in Shareholding structure while OFS does not affect the number of authorized shares.
- Only the companies with a Market Capitalisation of Rs 1000 crores and above can use the OFS route to raise funds while all the listed companies can use the FPO option.
- Ever since SEBI has introduced OFS, FPO issues have come down, and companies prefer to choose the OFS route to raise funds