Daily Prelims Notes 31 July 2023

July 31, 2023
Posted by: OptimizeIAS Team
Category: DPN

Daily Prelims Notes

31 July 2023

Table Of Contents

1. Banks start making provisions ahead of RBI’s ECL norms

Subject : Economy

Section: Monetary Policy

In News: Banks begin to build up provisions even before migration to expected credit loss (ECL) based provisioning by RBI.

Key Points:

Reserve Bank of India (RBI) yet to announce the final guidelines on the new expected credit loss (ECL) based provisioning
The ECL moves away from the current incurred loss-based approach.
But banks have started preparing for the change by undertaking higher provisions. Banks are presently basing these (RBI yet to finalise guidelines) on internal assessments.
All banks are likely to start making provisions once the RBI releases the final ECL guidelines.
According to various estimates, the banking sector’s provisioning requirement for shifting to the ECL framework will be between Rs 90,000 crore to Rs 1 lakh crore.

What is the ECL based provisioning?

Under ECL, ‘financial assets’ are to be classified as Stage 1, 2 or 3, depending on their credit risk profile.
Stage 2 and 3 loans have higher provisions based on the historical credit loss patterns observed by banks.
This is in contrast to the existing approach of incurred loss provisioning; whereby step-up provisions are made based on the time the account has remained in the NPA category.

RBI update:

RBI has proposed a maximum time frame of five years after the date of implementation for spreading out these provisions
Additional capital requirements under the ECL framework found within manageable limits.

2. New Standing Committee on Statistics holds its first meet

Subject: Economy

Section: National Income

In News: Newly-formed Standing Committee on Statistics discusses the yet-to-be released results of the Annual Survey of Industries and Annual Survey of Unincorporated Enterprises in detail.

Key Points:

Government recently renamed and expanded the scope of coverage of the Standing Committee on Economic Statistics (SCES) formed in December 2019 as Standing Committee on Statistics (SCoS).
The Committee on Statistics held its first meeting Saturday and discussed the yet-to-be released results of the Annual Survey of Industries and Annual Survey of Unincorporated Enterprises in detail.
The committee, chaired by former Chief Statistician and former Chairman of the National Statistical Commission Pronab Sen, was constituted on July 13.
The terms of reference (ToR) of the committee are to review the extant framework and to address the issues raised from time to time on the subject/ results/ methodology, etc. in addition to advising on survey methodology and on finalisation of survey results.
The SCoS has 14 members, out of which there are four non-official members, nine official members and a member secretary.
The new committee has been formed at a time when India’s statistical system has come under criticism, especially from three members of the Economic Advisory Council to the PM (EAC-PM) including Chairman Bibek Debroy and members Shamika Ravi and Sanjeev Sanyal.

Annual Survey of Industries 2020-21:

Discussions were mainly around the Annual Survey of Industries 2020-21 because the results are to be released soon.
The Annual Survey of Industries (ASI), which covers all factories registered under the Factories Act across the country.
It is considered as an important source of industrial statistics of the registered organised manufacturing sector of the economy.
The survey results for 2020-21 are expected to be released next week.

Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2021:

There was also discussion on the results of the Annual Survey of Unincorporated Enterprises 2021, which has been pending for a long time even though it is ready.
The first quarter results for it are showing a dip and then it bounces back up in subsequent quarters, so we are looking into it.
As per a government release from 2019, the National Statistical Office (NSO) had proposed to conduct the first round of the Annual Survey on Unincorporated Sector Enterprises (ASUSE) during October 2019-March 2020 and next round of ASUSE in April 2020 till March 2021.
The unincorporated sector is seen as important because of the large number of establishments in this sector and the magnitude of employment it provides to unskilled/ semi-skilled/ skilled persons along with its significant contribution to the Gross Domestic Product of the country.

Definition of unincorporated company:

An unincorporated company means any partnership firm whether registered or not under Indian Partnership Act, 1932, whose number of partners exceed 20 and exceed 10 in case of a banking business.

Such an unincorporated company is also known as an illegal association. It does not include an HUF.

3. Direct listing on exchanges at IFSC soon

Subject: Economy

Section: Capital Market

In News: Government takes decision to enable the direct listing of listed and unlisted companies on overseas exchanges at the IFSC (International Financial Services Centre).

Key Points:

With this direct listing of securities by Indian public companies (both listed and unlisted) would be permissible in foreign jurisdictions.

Side Note:

An unlisted public company and private companies can issue shares under Private Placement offer.
Being a public limited company means that it offers shares to the general public and has limited liability. Its stock can be acquired by anyone, either privately or on a listing exchange.

This is likely to enable start-ups and companies of like nature to access the global market through GIFT IFSC.
This will also facilitate access to global capital and result in better valuation for Indian companies.

Present setup:

At present, Indian companies can access overseas equity markets only through depository receipts or by listing their debt securities on foreign markets.
In 2020, the Centre amended the Companies Act, allowing the direct listing of Indian companies on foreign stock exchanges, but the framework has not been put in place so far.

SEBI update:

Government is also set to consolidate the laws dealing with the securities market in the country into a single securities market code.
Move will consolidate the three different laws — the SCRA (Securities Contracts Regulation Act) of 1956, the SEBI Act of 1992, and the Depositories Act of 1996 into a single act with an updated and rationalised set of provisions.

Depository Receipts

A depositary receipt (DR) is a negotiable certificate issued by a bank. It represents shares in a foreign company traded on a local stock exchange and gives investors the opportunity to hold shares in the equity of foreign countries. It gives them an alternative to trading on an international market.

4. SEBI may extend the scope of surveillance under its ASM framework

Subject :Economy

Section: Capital Market

In News: SEBI may bring the equity derivatives segment under long-term additional surveillance measures (ASM).

Key Points:

SEBI has already mandated stockbrokers to display ‘risk disclosures’ for F&O clients.
SEBI is now planning to put the equity derivatives segment under long-term additional surveillance measures (ASM).

What are the additional surveillance measures (ASM)?

ASM framework already exists for the equity markets, and it protects investor interest by placing scrips under restriction to prevent market speculation and manipulations.
The stocks are moved to the ASM category based on certain criteria.

Why the need to place F&O under ASM?

Recently, an expert panel set up by the Supreme Court had observed that the element of human discretion in surveillance actions should be done away with, as far as possible and inclusion of stock-specific derivatives must be automatic and machine-based.
SEBI has been trying to protect investors in the derivative market after a recent study found that 9 out of 10 individual traders were making losses in the F&O segment.

F&O present system:
- The existing mechanism relating to the recommendations for inclusion of stocks into F&O is completely data driven, based on objective criteria, market matrix and action taken report of the entity.
- Derivative contracts on stocks can be traded on recognised stock exchanges only if the underlying stocks satisfy certain objective criteria.
- SEBI also takes into account other factors such as surveillance concerns, and ongoing investigations while granting approval for the inclusion of stocks in the equity derivative segment.

5. India’s banking messaging system can go global

Subject :Economy

Section: Monetary Policy

In News: India’s Structured Financial Messaging System (SFMS) can become a viable alternative to the SWIFT messaging system.

Key Points:

India has two parallel offerings to the world in the area of banking.
- RBI has been proactively trying to internationalise the rupee and its payment systems.
- India’s Structured Financial Messaging System (SFMS) as an alternative to SWIFT.
While RBI efforts have gained attention, the internationalisation of India’s Structured Financial Messaging System (SFMS) went unnoticed.
Operationalised in 2001, SFMS provides secure financial message services to domestic banks and financial institutions within India. Around 250 members use SFMS either through a thick client or cloud-based systems.

RBI Efforts:

RBI and the Central Bank of the UAE entered into two significant memorandums of understanding related to the use of local currencies for cross-border transactions, and the interlinking of respective payment systems.
The objective is to promote the use of the rupee and the UAE dirham bilaterally and to promote fast and cost-effective cross-border fund transfers.
The statement also includes exploring the linking of payments messaging systems.

Difference between fund transfer and messaging:

Fund transfers and messaging are two distinct processes.
A payment transaction involves two key elements: the exchange of financial messages between the banks, and the actual transfer of funds.
Within India, both the National Electronics Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS) are fund transfer platforms, which are first validated by a secure message sent through SFMS.

How is SFMS as SWIFT alternative:

The Society for Worldwide Interbank Financial Telecommunications (SWIFT) is widely used as the messaging system for international payments.
SWIFT is just a messaging system like SFMS that provides secured financial messages to financial institutions.
It neither monitors nor manages the transfer of funds; that process is separately executed by banks using different platforms.
SFMS is at par, if not better, than SWIFT on messaging standards, messaging capabilities and cost.
- the internationalised version would cost less than half of SWIFT.
- SWIFT currently uses MT (Message Text) Standards and has initiated a shift to the International Organisation of Standardisation 20022 (ISO 20022).
- SFMS provides certain additional message types for interbank transactions such as Letters of Credit which can be used by foreign banks as well. SWIFT is only now building this capability.
Given that it is interoperable with SWIFT, they can co-exist easily. This would enhance the resilience of global financial architecture but making it less dependent on a single messaging system.

How does the banking messaging system works?

To enable fund transfer as a first step, the transfer request is communicated between the banks.
SWIFT messages between remitter (sender) and beneficiary banks and will first authenticate various details.
After confirmation, the transfer of funds between the banks gets initiated through VOSTRO and NOSTRO accounts.
- NOSTRO (our’s) account is a domestic bank’s account maintained by a foreign bank.
- VOSTRO (their’s) account is the same foreign bank’s account maintained by the domestic bank.
- The settlement of the entire process takes 2- 3 business days as per the mutual agreements between the counterparties.

6. Mob lynching

Subject :Polity

Section: Constitution

Context: The Supreme Court has asked the Ministry of Home Affairs and the governments of Maharashtra, Odisha, Rajasthan, Bihar, Madhya Pradesh and Haryana to respond to a petition filed by the National Federation of Indian Women (NFIW) seeking an explanation for their “consistent failure” in the past five years to act against lynching and mob violence committed on Muslims by cow vigilantes.

Mob lynching and Law

It is a direct violation of the constitutional guarantees provided under Articles 14 (equality before the law), 15 (religious non-discrimination) and 21 (right to life) of the Constitution; and the police are in breach of a “duty of care”.
It is gross infringement of theUniversal Declaration of Human Rights.
However, Mob lynching is not defined in IPC, CRPC, and nor defined in the constitution.

What was Tehseen Poonawala judgment?

The judgment of the Supreme Court authored held that it was the “sacrosanct duty” of the state to protect the lives of its citizens.
The court declared that the authorities of the States have the “principal obligation” to see that vigilantism, be it cow vigilantism or any other vigilantism of any perception, does not take place.
The judgment warned that vigilantes usher in anarchy, chaos, disorder and, eventually, there is an emergence of a violent society. “Vigilantism cannot, by any stretch of the imagination, be given room to take shape”.

7. France opposes ‘decoupling’ after economic talks with China

Subject: Economy

Section: External Sector

Context:

French Finance Minister Bruno Le Maire said on Sunday that he opposes the “illusion” of countries “decoupling” from China and he does not believe the world’s second-largest economy constitutes a risk.

What is coupling and decoupling?

In a globalised world, one part of the world affects countries all over. So, essentially all economies are connected. This is called ‘coupling’.
- When one economy collapses, it brings down overall world economic growth. The world markets that are too inter-connected are called ‘coupled economies’.
- However, there are countries which are shielded from such an effect. These economies do not grow or slow down in sync with the world. They are called ‘decoupled’ economies.

8. ECOWAS

Subject: International Relations

Section: International Organisation

Context: West African nations imposed sanctions if Niger’s coup leaders fail to reinstate ousted President Mohammed Bazoum within a week.

The 15-nation ECOWAS bloc’s response to the Sahel region’s seventh coup of recent years came as crowds in Niger’s capital Niamey burned French flags and stoned the former colonial power’s mission, drawing tear gas from police.

About ECOWAS:

It is a regional political and economic union of fifteen countries located in West Africa.
Established in 1975, with the signing of the Treaty of Lagos.
The goal of ECOWAS is to achieve “collective self-sufficiency” for its member states by creating a single large trade bloc by building a full economic and trading union.
It also serves as a peacekeeping force in the region.
Considered one of the pillar regional blocs of the continent-wide African Economic Community (AEC).

ECOWAS includes two sub-regional blocs:

The West African Economic and Monetary Union is an organisation of eight, mainly French-speaking states.
The West African Monetary Zone (WAMZ), established in 2000, comprises six mainly English-speaking countries.

Sahel region of Africa

It is a semi-arid region of western and north-central Africa extending from Senegal eastward to Sudan.
It forms a transitional zone between the arid Sahara (desert) to the north and the belt of humid savannas to the south.
The Sahel stretches from Senegal on the Atlantic coast, through parts of Mauritania, Mali, Burkina Faso, Niger, Nigeria, Chad and Sudan to Eritrea on the Red Sea coast.

CAN SANCTIONS WORK?

Similar sanctions were imposed by ECOWAS on Mali, Burkina Faso and Guinea following coups in those countries in the past three years.

Although the financial sanctions led to defaults on debt – in Mali in particular – such measures have tended to hurt civilians more than the military leaders who seized power in some of the world’s poorest countries, political analysts say. Timelines to restore civilian rule have been agreed in all three countries, but there has been little progress implementing them.

Why Niger is important?

Niger has been a key ally in Western campaigns against insurgents linked to al Qaeda and Islamic State in the Sahel, and there are concerns that the coup could open the door to greater Russian influence there. Thousands of French troops were forced to withdraw from neighbouring Mali and Burkina Faso following coups there.

Niger is one of the poorest countries in the world, receiving close to $2 billion a year in official development assistance, according to the World Bank.

9. Godavari flows above danger mark at Bhadrachalam

Subject : Geography

Section: Rivers in news

Context: Godavari flows above danger mark at Bhadrachalam, official says ‘prepared for flood situation’

Godavari:

The Godavari is the largest Peninsular River system. It is also called the Dakshin Ganga.
The Godavari basin extends over states of Maharashtra, Telangana ,Andhra Pradesh, Chhattisgarh and Odisha in addition to smaller parts in Madhya Pradesh, Karnataka and Union territory of Puducherry having a total area of 3,12,812 Sq.km with a maximum length and width of about 995 km and 583 km.
The basin is bounded by Satmala hills, the Ajanta range and the Mahadeo hills on the north, by the Eastern Ghats on the south and the east and by the Western Ghats on the west.
The Godavari River rises from Trimbakeshwar in the Nashik district of Maharashtra about 80 km from the Arabian Sea at an elevation of 1,067 m. The total length of Godavari from its origin to outfall into the Bay of Bengal is 1,465 km.
Godavari river rises near Nasik in Maharashtra at an elevation of about 1067 m and flows for a length of about 1465 km before outfalling in to the Bay of Bengal. The principal tributaries of the river are the Pravara, the Purna, the Manjra, the Penganga, the Wardha,the Wainganga the Pranhita(combined flow of Wainganga, Penganga, Wardha), the Indravati, the Maner and the Sabri.

10. Pakistan approves projects worth billions of dollars to Gulf countries for investment purpose

Subject :Science and tech

Section: Awareness in IT and computers

Context:

In a major development, Pakistan has in principle approved 28 projects worth billions of dollars that would be offered to Gulf countries for investment with the long-term objective to reduce reliance on loans and imports.

Details:

A new Special Investment Facilitation Council (SIFC) has been established to address the financial challenges and fast-track the economic development.
Countries include: 23 countries are identified, some of which are: Qatar, Saudi Arabia, the UAE and Bahrain.
Investment can be greater than $28 billion under the China-Pakistan Economic Corridor (CPEC).
The approved schemes are in the food, agriculture, information technology, mines and minerals, petroleum and power sectors.
They include: the Diamer-Bhasha dam, cattle farms; the $10 billion Saudi Aramco refinery; explorations of copper and gold in Chagai; and the Thar Coal Rail connectivity scheme.

Special Investment Facilitation Council (SIFC):

SFIC is a hybrid civil-military forum.
Aim: to foster synergy between the federal and provincial governments to facilitate timely decision making; avoid duplication of efforts; enhance investor confidence, and ensure swift project implementation.
To give legal cover to SFIC changes are being made in:
- Pakistan Army Act
- The Board of Investment (BOI) Ordinance
- Amendments to the Election Act have also been introduced to ensure the continuity of work
The apex committee of the SIFC approved:
- A project for corporate farming on 10,000 acres in the Cholistan desert that will be later extended to 85,000 acres.
- The setting up of a dairy company holding 20,000 Holstein Friesian animals (an international breed of dairy cattle) and the number of farms could be extended to five or more.
- The establishment of a corporate feedlot farm of 30,000 animals.
- The establishment of a corporate camel farm of 10,000 animals.
- The Chiniot Iron Ore project, the Barite-Lead-Zinc project, and the explorations of copper and gold in Chagai as well as lead and zinc in Khuzdar.
- A Saudi Aramco oil refinery costing $10 billion and the TAPI Gas Pipeline Project for investment.
- The Solar PV Project at the locations of Layyah and Jhang.
- A hydropower project at Rajdhani, two transmission Lines from Ghazi Barotha to Faisalabad and Matiari to Rahim Yar Khan.
- Chashma Right Bank Canal Project.
The SIFC had approved the setting up of technology zones, a project for investment in the optical fibre network, the establishment of Cloud infrastructure and a semiconductor designer, manufacturing of smart devices, a global skill hub scheme and various centres of excellence.

About the CPEC:

The CPEC is a collection of infrastructure and other projects under construction throughout Pakistan since 2013.
CPEC is a 3,000-km long route of infrastructure projects connecting China’s northwest Xinjiang Uygur Autonomous Region and the Gwadar Port in the western province of Balochistan in Pakistan.
Pakistan and China had planned a total $62 billion investment under CPEC but so far, less than a sum of $28 billion has been materialised.

11. 46000-Year-Old Worm Possibly Revived from Siberian Permafrost

Subject :Science and tech

Section: Awareness in IT and computers

Context:

An international team of scientists says nematodes found in Siberian permafrost are 46,000 years old and survived using techniques similar to those of a modern lab favorite.

About the new finding:

In 2018 scientists announced they had discovered and revived two types of microscopic nematodes found in the Siberian permafrost, estimating they may have been 42,000 years old.
One of these nematode varieties represents a new species, dubbed Panagrolaimuskolymaensis for the Kolyma River where they were found.
The new research also compares the Siberian worm’s survival mechanism with one found in another nematode species, Caenorhabditis elegans—a model organism used in laboratories around the world.
The researchers further claim that the P. kolymaensis worms are actually 46,000 years old.

Panagrolaimus species:

P. kolymaensis is parthenogenic, meaning females of the species can reproduce without a male partner (although typically less profusely).
The nematodes are triploid, containing three copies of each chromosome; typically, chromosomes come in pairs, with half contributed by each parent. Thus their genetic analysis becomes challenging.
Panagrolaimus species are found around the world and are known for surviving in environments that regularly expose them to desiccation or freezing.
If the worms really are as old as the study suggests, they would be by far the most stunning examples of what scientists call cryptobiosis—an organism’s ability to suspend its own metabolism in poor conditions.
In addition to the radiocarbon dating, the authors of the new study also confirmed that they could successfully induce the nematodes to enter and exit the dormancy-like state of cryptobiosis using special preparatory cues.

12. ISRO successfully places seven Singaporean satellites into intended orbit

Subject :Science and tech

Section: Awareness in IT and computers

Context:

ISRO successfully launched its proven PSLV rocket carrying seven Singaporean satellites from Satish Dhawan Space Centre in Sriharikota, Andhra Pradesh and placed them into intended orbits.

Details:

PSLV-C56/DS-SAR Mission: The mission is successfully accomplished. PSLV-C56 vehicle launched all seven satellites precisely into their intended orbits.
Primary payload-DS-SAR Radar Imaging Earth Observation satellite, developed under a partnership between DSTA (representing the Government of Singapore) and ST Engineering, Singapore.
The satellite carries a Synthetic Aperture Radar (SAR) payload developed by Israel Aerospace Industries.
The payload allows DS-SAR to provide for all-weather day-and-night coverage and it is capable of imaging at 1-metre resolution.
A Core Alone version of the rocket means the vehicle would not use solid strap-on motors on its sides in the first stage.

The co-passenger satellites are:

VELOX-AM,a 23 kg technology demonstration microsatellite,
ARCADE Atmospheric Coupling and Dynamics Explorer (ARCADE), an experimental satellite,
SCOOB-II, a 3U nanosatellite flying a technology demonstrator payload,
NULloN by NuSpace, an advanced 3U nanosatellite enabling seamless Internet of Things connectivity in both urban and remote locations,
Galassia-2, a 3U nanosatellite that would be orbiting at low earth orbit and
ORB-12 STRIDER, a satellite developed under an international collaboration

A unique scientific experiment performed by ISRO:

During the mission, the scientists decided to perform a unique scientific experiment in which the fourth stage of the rocket would be lowered into a 300 kilometer orbit after placing customer satellites at an altitude of 536 km” to mitigate the space debris problem”.
Normally after a successful mission, a rocket before re-entering into the Earth’s atmosphere would travel for “decades” in an orbit as a space debris but with this experiment, the duration is now reduced to “two months”.
India remains committed to reduced space debris and sustainable use of space for the benefit of all.

Near Equatorial Orbit (NEO):

A near-equatorial orbit is an orbit that lies close to the equatorial plane of the object orbited. Such an orbit has an inclination near 0°.
On Earth, such orbits lie on the celestial equator, the great circle of the imaginary celestial sphere on the same plane as the equator of Earth.
A geostationary orbit is a particular type of equatorial orbit, one which is geosynchronous.
A satellite in a geostationary orbit appears stationary, always at the same point in the sky, to observers on the surface of the Earth.
Launch stations near the equator are: Guiana Space Centre in Kourou, French Guiana, or Alcantara Launch Centre in Brazil, Thumba and SDSC in India.
Equatorial orbits can be advantageous for several reasons:
- They provide some additional orbital speed to the launch vehicle by imparting the rotational speed of the Earth, 460 m/s, to the spacecraft at launch.
- The added velocity reduces the fuel needed to launch spacecraft to orbit.
  - Since Earth rotates eastward, only launches eastward take advantage of this boost of speed.
  - Westward launches, in fact, are especially difficult from the Equator because of the need to counteract the extra rotational speed.
- Communication: a spaceship in an equatorial orbit passes directly over an equatorial spaceport on every rotation, in contrast to the varying ground track of an inclined orbit.
- Launches directly into equatorial orbit eliminate the need for costly adjustments to a spacecraft’s launch trajectory.
  - The manoeuvre to reach the 5° inclination of the Moon’s orbit from the 28° N latitude of Cape Canaveral was originally estimated to reduce the payload capacity of the Apollo Program’s Saturn V rocket by as much as 80%.

13. Bill proposes graded age ratings for films, but censorship to stay

Subject : Science and Tech

Section: Awareness in IT and computers

Context:

The Cinematograph (Amendment) Bill, 2023 introduces graded age ratings for movies for the first time.

Details:

All ‘curated content publishers’ such as Netflix, Amazon Prime Video, or Hotstar provide graded age ratings to warn parents of content unsuitable for minors since the Information Technology Rules, 2021 were passed.
The graded age ratings will allow viewers — particularly parents — to take more factors into account when they watch a film, or when they let their children go unaccompanied to the cinema.
However, the changes fall short of what an expert committee chaired by filmmaker Shyam Benegal recommended to the Union government in 2017, as the Central Board of Film Certification (CBFC) retains its censorship powers, rather than becoming a mere classification authority.

The new graded age ratings:

U/A, the classification used by the CBFC to indicate films that can only be watched by minors if they have an adult accompanying them, will be split into three levels, once the Bill becomes law.
The new age ratings are U/A 7+, U/A 13+, and U/A 16+.
This means, for instance, that minors who are 14 years old can watch films rated U/A 7+ and U/A 13+ unaccompanied.
In theory, this could mean that films that deal with mature content could be released without being given an ‘A’ or adult only certificate.

For details of the Bill: https://optimizeias.com/rajya-sabha-passes-cinematograph-amendment-bill-2023-aimed-at-curbing-film-piracy/

14. Post-quantum cryptography: securing data in the age of quantum computers

Subject :Science and tech

Section: Awareness in IT and computers

Context:

Governments and organisations across the world are rushing to develop quantum computing platforms and advanced security algorithms to defend against such machines. One such example is the U.S. National Institute of Standards and Technology’s Post-Quantum Cryptography Standardisation project.
India has launched the National Quantum Mission.

Security algorithm:

Much of our current security is based on techniques such as RSA, elliptic curves, Diffie-Hellman key exchange and almost all of them rely on a few “hard” mathematical problems, such as factorisation and the discrete logarithm problem.
In 1994, Peter Shor developed a quantum algorithm that can break all of these with ease.
While Shor’s technique poses a threat to certain security algorithms, there are alternative methods that remain unaffected.
Lov Grover’s quantum algorithm can often be fixed by increasing the key or password lengths.
Some common “symmetric” security algorithms such as AES are not badly affected. (Symmetric key algorithms use the same password to lock and unlock the information.)

Post-quantum cryptography:

Post-quantum cryptography involves exploring alternative techniques to counter vulnerabilities against quantum attacks.
In cryptography, post-quantum cryptography (PQC) refers to cryptographic algorithms (usually public-key algorithms) that are thought to be secure against a cryptanalytic attack by a quantum computer.
- The problem with currently popular algorithms is that their security relies on one of three hard mathematical problems: the integer factorization problem, the discrete logarithm problem or the elliptic-curve discrete logarithm problem.
- All of these problems could be easily solved on a sufficiently powerful quantum computer running Shor’s algorithm.
While Shor’s algorithm poses particular concerns for certain methods, the field has rapidly evolved with promising approaches such as lattice algebra, multivariate cryptography, isogeny-based techniques, and code-based cryptography.
One promising technique, supersingular isogeny Diffie-Hellman key exchange, was considered secure by many until it was utterly broken by Wouter Castryck and Thomas Decru last year.

Bits of physics:

We have developed circuits that can do logical computations incredibly fast and with astounding reliability.
New kinds of gates can be built using the laser, maybe a prism “naturally” computes a square root or something.
The principles of quantum mechanics enabled a set of gates that were utterly impossible to build using electronics.
In other words, using quantum states to represent logic allows us to compute very differently.
This new, different kind of computation is very powerful. Many things that were complex and cumbersome when run on electronic logic become incredibly simple on a quantum system.

Challenges:

This comes with its own problems.
- Current attempts are incredibly error-prone and have many missing pieces.
However, many experts believe that this is inevitable and we will eventually develop such machines.

Quantum computer:

A quantum computer is a computer that exploits quantum mechanical phenomena.
At small scales, physical matter exhibits properties of both particles and waves, and quantum computing leverages this behaviour using specialised hardware.
Classical physics cannot explain the operation of these quantum devices, and a scalable quantum computer could perform some calculations exponentially faster than any modern “classical” computer.
In particular, a large-scale quantum computer could break widely used encryption schemes and aid physicists in performing physical simulations; however, the current state of the art is largely experimental and impractical, with several obstacles to useful applications.

National Quantum Mission (NQM):

It’ll be implemented by the Department of Science & Technology (DST) under the Ministry of Science & Technology.
The mission planned for 2023-2031 aims to seed, nurture, and scale up scientific and industrial R&D and create a vibrant & innovative ecosystem in Quantum Technology (QT).
With the launch of this mission, India will be the seventh country to have a dedicated quantum mission after the US, Austria, Finland, France, Canada and China.

15. India created record by destroying 10 lakh kg of drugs

Subject :Schemes

Context:

Prime Minister Narendra Modi said India had created a unique record of destroying 10 lakh kg of drugs worth ₹12,000 crore in the past one year. Just about two weeks ago, 1.5 lakh kg of seized drugs were destroyed.

Details:

On August 15, 2020, the Centre had launched “Nasha Mukt Bharat Abhiyan”, which had so far reached more than 11 crore people.
- Ministry of Social Justice & Empowerment which is the Nodal Ministry for Drug Demand Reduction has formulated and launched Nasha Mukt Bharat Abhiyaan (NMBA) on 15th August 2020, in 272 Districts across 32 State/Union Territories identified as most vulnerable in terms of usage of drugs in the country.
- These vulnerable districts were identified on the basis of findings from the Comprehensive National Survey and the inputs provided by the Narcotics Control Bureau (NCB).
Successful example:
- Madhya Pradesh’s Bichharpur village in Shahdol was infamous for illicit liquor. Despite limited resources, Raees Ahmed, a former national player and coach, started teaching football to the local youth.
- Within a few years, football became popular in the village, now known as “Mini Brazil”.
- A programme called “Football Kranti” is also being implemented there.
In Uttar Pradesh, a record of planting 30 crore saplings in a single day had been made as part of a public participation campaign started by the State government.

Government initiative:

The Ministry of Social Justice & Empowerment has been implementing the Central Sector Scheme for Prevention of Alcoholism and Substance (Drug) Abuse since 1985-86 with the objective of creating awareness and educate people about the ill-effects of alcoholism and substance abuse and for providing a whole range of community based services for identification, motivation, counselling, deaddiction, after care and rehabilitation for Whole Person Recovery (WPR) of substance and alcohol users.
The Ministry of Social Justice and empowerment has conducted the first National Survey on Extent and Pattern of Substance Use in India through National Drug Dependence Treatment Centre (NDDTC) of the All India Institute of Medical Sciences (AIIMS), New Delhi during 2018.
The MoSJ&E formulated and enacted the National Action Plan for Drug Demand Reduction (NAPDDR) (2018- 2025).
The Narcotic Drugs and Psychotropic Substances (NDPS) Act 1985 was enacted to control and regulate narcotic drugs.
The Government of India has also brought out a National Policy on Narcotic Drugs and Psychotropic Substances (NDPS) in 2012 to serve as a guide to various Ministries/Departments, State Governments, International Organisations, NGOs, etc. and re-assert India’s commitment to combat the drug menace in a holistic manner.
Constitutional provision:
- Article 47 of the Constitution provides that “The State shall regard the raising of the level of nutrition and the standard of living of its people and the improvement of public health as among its primary duties and, in particular, the State shall endeavor to bring about prohibition of the consumption except for medicinal purposes of intoxicating drinks and of drugs which are injurious to health.”
India is a signatory to the three UN Conventions namely:
- Single Convention on Narcotic Drugs, 1961,
- Convention on Psychotropic Substances, 1971 and
- Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988.

Institutions involved:

Integrated Rehabilitation Center For Addicts (IRCAs): are de-addiction centres with inpatient facilities of counselling and treatment for drug dependent persons
Community Peer Led Intervention (CPLI): work with the community supported by youth volunteers for early preventive education, especially for vulnerable adolescents and youth in the community
Outreach And Drop In Centres (ODIC): provide facilities of screening, assessment and counselling along with providing referral & linkage to treatment and rehabilitation services for drug dependents
GEO Location: Ministry supported institutions providing Drug addiction counseling, treatment and rehabilitation and other facilities have been Geo-tagged to make their services accessible and easier to locate

Meri Mati Mera Desh campaign:

Ahead of this Independence Day, the government was launching the “Meri Mati Mera Desh” campaign to honor the bravehearts who made the supreme sacrifice for the country.
Under this, 7,500 urns carrying soil from different parts of India, besides saplings, would be brought to Delhi and used for developing “Amrit Vatika” near the National War Memorial.
During the last independence day (2022), “Har Ghar Tiranga Abhiyan” was launched.

Over 60,000 “Amrit Sarovars” had already been built under the “Azaadi ka Amrit Mahotsav” programm

16. How inverter ACs catalysing the energy-efficient future

Subject :Environment

Section: Environment Legislation

Context:

Cost Efficiencies, growing climate awareness and rising purchasing power is triggering a discernible consumption shift in India, with energy-efficient inverter air conditioners gaining traction among consumers and manufacturers ramping up output.

Inverter ACs:

According to latest data from the Bureau of Energy Efficiency (BEE),Ministry Of Power,inverter ACs accounted for less than 1 percent of the overall room AC (RAC) market of 4.7million units in the financial year 2015-16 (FY16).
As of FY23, the share has increased to 77 per cent, while the fixed speed RACs went down to 23 percent.
Inverter ACs are a preferable choice over the non-inverter ACs due to their:
- low operational costs,
- increased energy efficiency,
- noiseless operation and
- Maximum usage security.
A non-inverter ACs are fixed speed ACs where the compressor is turned on and off repeatedly.
An inverter AC, on the other hand, is a variable speed AC where the compressor runs continuously, but way more efficiently and does the cooling job better while consuming less power.

Manufacturing plants in India:

To meet the rising demand, the companies are stepping up with investments to set up manufacturing plants that produce higher end ACs in India.
At present, Daikin, the world’s largest AC manufacturer, builds around 15 lakh RAC units from its Neemrana facilities in Rajasthan, aiming for another 10-12 lakh units once the SriCity facility is set up by 2024.
- Most of the components for Daikin are imported from Thailand and Vietnam. Some components are already manufactured here in Neemrana, Rajasthan.

Mitsubishi Electric India will set up a new manufacturing unit in TamilNadu’s Tiruvallur district at an investment of about Rs 1,891 crore.
- The production was expected to begin in 2025, and the initial capacity RAC would be 3 lakh units and 6.50 lakh for compressors by December 2025.
- The combined cost of purchase and running of the inverter ACs is lower than that of the regular air conditioners regarding the upfront price versus the running cost trade-off.

Production-Linked Incentives (PLI) for inverter ACs:

Production-Linked Incentives(PLIs) have been introduced to encourage manufacturers to invest in component manufacturing in India.
These companies will manufacture copper tubing, compressors, control assemblies for indoor and outdoor units, heat exchangers and BrushLess DC motors, among other components.

BEE labeling:

The shift towards inverter ACs is a part of BEE’s India Cooling Action Plan, aimed to fulfil cooling demand,enhance energy efficiency and better technology options.
Due to BEE’s star-rating system, the electricity cost went down considerably, about 65-75 percent, leading to deeper penetration of ACs across India.
The table for star-rating gets revised every two years. What was a 5-star RAC is a 4-star or 3-star now.
As of now, no brand makes 5-star fixed RACs as it does not deliver energy efficiency.

Star rating system of BEE:

The Bureau of Energy Efficiency (BEE) has developed a star rating system for electrical appliances that will help recognise an energy-efficient appliance.
The appliance efficiency ratings are labelled in a range of 1 to 5 stars.
An energy star refers to the appliance’s energy efficiency, with 1 star being the least efficient and 5 stars being the most efficient.

India Cooling Action Plan (ICAP):

Launched by: Government of India in 2019.
India is the first country with a cooling action plan based on energy efficiency and thermal comfort.
The India Cooling Action seeks to:
- reduce cooling demand across sectors by 20% to 25% by 2037-38,
- reduce refrigerant demand by 25% to 30% by 2037-38,
- Reduce cooling energy requirements by 25% to 40% by 2037-38,
- recognize “cooling and related areas” as a thrust area of research under national S&T Programme,
- training and certification of 100,000 servicing sector technicians by 2022-23, synergizing with Skill India Mission.
The following benefits would accrue to the society over and above the environmental benefits:
- Thermal comfort for all – provision for cooling for EWS and LIG housing,
- Sustainable cooling – low GHG emissions related to cooling,
- Doubling Farmers Income – better cold chain infrastructure – better value of produce to farmers, less wastage of produce,
- Robust R&D on alternative cooling technologies – to provide push to innovation in the cooling sector.

BEE:

It is an agency of the Government of India, under the Ministry of Power created in March 2002 under the provisions of the nation’s 2001 Energy Conservation Act.
Five major provisions of EC Act relate to Designated Consumers, Standard and Labelling of Appliances, Energy Conservation Building Codes, Creation of Institutional Set up (BEE) and Establishment of Energy Conservation Fund.
The agency’s function is to develop programs which will increase the conservation and efficient use of energy in India.
The government has proposed to make it mandatory for certain appliances in India to have ratings by the BEE starting in January 2010.
The primary objective would be to reduce energy intensity in the economy.
The mission is to “institutionalise” energy efficiency services, enable delivery mechanisms in the country and provide leadership to energy efficiency in all sectors of the country.
Mandatory Appliances-
- Frost Free (No-Frost) Refrigerator
- Tubular Fluorescent Lamps
- Room Air Conditioners (Cassette, Floor Standing Tower, Ceiling, Corner AC)
- Distribution Transformer
- Color TV
- CST AC
- Direct Cool Refrigrator
- Electric Geyse

17. Worldcoin project

Subject : Science and technology

Section: Awareness in IT

A venture by Sam Altman (CEO OpenAI), which scans eyes of the person and provides a unique ID (a World ID) and WLD Crypto.

Worldcoin claims it is building world’s largest identity and financial public network.

Orb, Orb operators and World App:

Orb: A device used to scan the iris of eyes of the person

It captures images and a unique code is generated.
Images are immediately deleted once code is generated (unless user opts in to data custody)
Individuals are not required to share their name, phone number, email address, or home address.

Orb operators: A Worldcoin volunteers who are using orb to scan eyes and helping in getting World ID using World App.

They receive basic training and a biometric device (orb).
They can rent out orb as well.
In return for signing up more people to the Worldcoin network they receive WLD crypto

World App: First Worldcoin wallet, designed to bring digital identity and global finance to everyone.

Uses a technology known as zero knowledge proofs (ZKPs) to maintain users’ privacy.
Fully compliant with Europe’s General Data Protection Regulation (GDPR).

WLD Crypto: A cryptocurrency based on the Ethereum blockchain.

Ethereum has a native coin, Ether, which is the second largest crypto by market capitalisation.
However, anyone can create a token which runs on the Ethereum blockchain. WLD is one such cryptocurrency.
Users can also buy or sell WLD without getting scanned or using the app.

Why scan irises?

As per company blog post:

It wanted to include everyone and biometric is the way.
India’s proven use of biometrics through its Aadhar system

Worldcoin and India:

Worldcoin lists 18 locations, largely in Delhi, Noida, and Bangalore, where Orb operators are scanning people’s eyes.

18. Cell-free DNA and its applications

Subject : Science and technology

Section: Biotechnology

What is Cell-free DNA (cfDNA)?

Cell-free DNA (cfDNA) are fragment of DNA released from cells into the circulatory system throughout the body, outside their neatly packed cells.

A useful tool

These can be generated and released from a cell in a number of possible situations, including when a cell is dying and the nucleic acids become degraded.
As Biomarker: The release could occur together with a variety of processes, including those required for normal development, those related to the development of certain cancers, and those associated with several other diseases.
For example – detection of an autoimmune disease using cfDNA: systemic lupus erythematosus – where the body’s own immune system attacks specific cells.

Checking the baby

Screening foetuses for specific chromosomal abnormalities, an application known as non-invasive prenatal testing (clinicians can now screen mothers from a few millilitres of blood, obtained after nine or ten weeks of pregnancy).
Genome sequencing approaches allows clinicians to sequence cfDNA fragments that correspond to foetal DNA and to understand specific chromosomal abnormalities.
- Such as Down’s syndrome, which is due to a change in chromosome 21 (there are three copies of chromosome 21 in place of two, so it is also called trisomy 21).
- The test is almost 99% accurate for trisomy 21 or Down’s syndrome and a bit less so for other common trisomies (of chromosomes 13 and 18).
Invasive prenatal testing: Before the genome sequencing the process entailed inserting a fine needle into the body to retrieve the amniotic fluid and cells covering the developing foetus, and analysing them in the lab. This method carries risks to both the foetus and the mother.
Limitations: a positive test result on a cfDNA test should always be followed up with a confirmation test.

Catching a cancer

Emerging application of cfDNA is in the early detection, diagnosis, and treatment of cancers.
GEMINI test: Genome wide Mutational Incidence for Non-Invasive detection of cancer using whole-genome-sequencing approach to cfDNA
The researchers examined a type of genetic mutation that, when combined with machine-learning approaches, combined with some genomic data, and data from a computed tomography (CT) scan could enhance a way to detect cancer early (combination of new approaches with existing)

Almost infinite applications

Understanding why a body is rejecting a transplanted organ:
- Here, some cfDNA obtained from the donor of the organ – called donor derived cfDNA, ddcfDNA – could provide an early yet accurate estimate of how well the organ is being taken up.
- The cfDNA could send a signal earlier than other biomarkers if something is going to go wrong.
There have already been some reports suggesting that cfDNA could be used as a biomarker for neurological disorders like –
- Alzheimer’s disease,
- neuronal tumours,
- stroke,
- traumatic brain injury,
- metabolic disorders such as type2 diabetes and non-alcoholic fatty liver disease.

19. Govt cuts farm airtime

Subject :Schemes

Public broadcaster Prasar Bharati has decided to reduce the frequency of two programmes on Akashvani (All India radio)- ‘Kisanvani’ and ‘Kisan ki Baat’-from six days to three days per week with effect from August 1.The programmes, sponsored by the Ministry of Agriculture and Farmers Welfare ,will now be aired on Tuesdays, Thursdays and Saturdays.

Why the cut in airtime?

The decision was taken after the agriculture ministry asked Prasar Bharati to reduce the frequency of such programmes, both on Doordarshan and Akashvani, citing “better utilisation of funds”.
The agricultural ministry has placed 40 percent of funds under advertising and publicity with the CBC(Central Bureau of Communication, under the Ministry of Information and Broadcasting) for effective dissemination of information of department’s schemes, ongoing initiatives, policy decisions, advisories etc. The Agriculture minister has said that such step is being taken to use “new methods of media”. Earlier Prasar Bharati used to do agricultural publicity now the CBC department will also do publicity.

What is KisanVani and Kisan ki baat programme?

It was launched in February 2004
It is is a half-an-hour radio programme aired from Monday to Saturday, at 6:30 pm, through 96 stations of Akashvani across the country.
It is aimed at keeping local farmers informed about daily market rates, weather reports and day to day information in their areas at a micro level, said a source.
Aired in local languages and dialects, kisanvani is most interactive in content, involving field based recordings of farmers and studio dial-outs and dial-ins.
Following the popularity of Kisanvani, in September 2018 “Kisan ki Baat” programme was launched, it is half-hourly six day a week programme.

20. Wajid Ali Shah after 1857: how he resurrected his court in Calcutta

Subject :History

Section: Modern India

Wajid Ali shah was a man of many contradictions- A king who never had much power but who managed to maintain a ‘court’ to his dying day; a ruler whose deposition contributed to the revolt of 1857 but who never showed any inclination of fighting the British; an aesthete who wrote much about love and passion, but treated his numerous wives and children rather callously.

Wajid Ali Shah’s Lucknow rule(1847-56)

First part of Wajid Ali Shah’s story, that of his almost nine year reign as Lucknow’s ‘king’ and of his deposition on charges of misgovernance and debauchery but in reality he was reforming his administration but was hamstrung by the British. A year later, the First War of Independence broke out, and Shah’s divorced wife, Begum Hazrat Mahal, came charging into the pages of history, completing the Nawab’s exile

30 years of life in Calcutta

After he was deposed as the king of Lucknow, he wanted to plead his case directly with Queen Victoria and landed in Calcutta for this purpose, but he fell ill and the Revolt of 1857 broke out, was promptly imprisoned in Fort William, despite offering his support to British. After he was finally freed from Fort William and allowed a residence and two mile stretch along Hooghly river

In the Garden Reach area (or Metiaburz). Wajid Ali Shah had been followed from Lucknow 300 wives, children, ministers, bodyguards, tradesmen, cooks, tailors, attenders, entertainers, performers and so on even when Nawab was imprisoned. Soon Nawab got British to buy three bungalow for him and he embarked on a remodelling and redecorating project on a royal scale indeed.

The elaborate dance, music and poetry events of Lucknow were brought back to life, and the nawab is credited with popularising Bengal Kathak and the biryani with potato.

The opulence resulted in Nawab under debt but the British bailed him out.

Why did the British bailed him out?

First, that Nawab still carried emotive appeal and personal popularity. Till his death, the British feared that public humiliation or physical assault of the nawab could incite a rebellion.

The second was the hope that Wajid Ali Shah would die soon, thanks to his hedonistic lifestyle and his own hypochondria. But third, and very important, was the personality of Wajid Ali Shah, who refused to acknowledge that his reduced circumstances required a change in his behaviour. His spending was not his only pretension to royalty. He carried on with his court, paying salaries to thousands of people.

21. Six killed in Palestinian refugee camp in Lebanon

Subject : International relations

Section: Places in news

Context: Clashes at the Ein el-Hilweh camp broke out between Palestinian Authority President Mahmoud Abbas’s Fatah movement and rival Islamist groups. Among the six dead was a Fatah commander, the movement confirmed.

About Ein el-Hilweh camp

Established in 1948, the restive Ein-el-Hilweh camp is the largest with more than 63,000 registered refugees, some estimates say the population is higher. Thecamp, situated near the southern city of Sidon, falls outside the jurisdictions of the Lebanese security forces which is the reason why rival factions like Fatah and Al-shabab al-Muslim group. More than 4,79,000 refugees registered with UN live in 12 camps in Lebanon and have dire security risks.

About Fatah

Fatah is a Palestinian nationalist and social democratic political party. It is the largest faction of the confederated multi-party Palestinian Liberation organisation. Mahmoud Abbas, the President of the Palestinian Authority, is the chairman of Fatah. Fatah has revolutionary struggle in the past and has maintained a number of militant groups.

Al shabab

Al-Shabaab (Harakat al-Shabaab al-Mujahideen) is a jihadi insurgent group active in Somalia and, in recent years, increasingly in Kenya. The group developed in the early 2000s parallel to, and later in partnership with, the Union of Islamic Courts (UIC) that overran the capital, Mogadishu, and installed themselves as administrators over Mogadishu and much of Somalia in 2006.

Al-Shabaab comprised the young, radical armed wing of the UIC; their full name translates to ‘Movement of Jihadi Youth.’ The group however outlasted the UIC, which was ousted from the capital in December 2006 by Ethiopia, which feared it would threaten Ethiopia’s own security as well as regional and international interests. Al-Shabaab went on to launch a successful guerrilla insurgency, conquered and administered large parts of Somalia, including crucial port cities such as Kismayo. Estimates of its size range from 5,000 to 9,000 fighters.

22. Two Indian military aircraft visit Australia’s strategic Cocos Islands

Subject : International relations

Section: Places in news

Why in news?

Expanding the strategic reach of the Indian military and improving interoperability with Australia, an Indian Navy Dornier maritime patrol aircraft and an Indian Air Force (IAF) C-130 transport aircraft visited Australia’s Cocos (Keeling) Islands (CKI) in the Southern Indian Ocean, close to Indonesia and strategic maritime choke points earlier this month.
The aircraft were at Cocos Island for close to a week, which can be an important base for refuelling and operational turnaround for the Indian military; India aims to increase its military-to-military engagement, deepening interoperability in the region.

Cocos Keeling Islands (CKI) and its facilities

CKI is an Australian external territory located in the Indian Ocean, approximately 3,000 km north-west of Perth in western Australia, and comprises two coral atolls made up of 27 smaller Islands. The runway at this facility is being upgraded and lengthened by 150 metres by Australian Defence Forces (ADF) so that larger aircraft like P-8Is can utilise for efficient patrolling of this region. Even before the Indian military reached there, Cocos Islands had been a point of cooperation between the space agencies of the two countries for India’s Gaganyaan human space flight mission. Establishing temporary ground stations and other satellite navigation cooperation here by Australian space agency (ASA) and ISRO.