Daily Prelims Notes 30 December 2022

December 30, 2022
Posted by: OptimizeIAS Team
Category: DPN

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Daily Prelims Notes

30 December 2022

Table Of Contents

1. National Ganga Council meet

Subject: Government schemes

Context;

The National Ganga Council, will be held under the chairmanship of Prime Minister Narendra Modi in Kolkata

What is National Ganga Council:

The National Ganga Council is an authority created in October 2016 under the River Ganga (Rejuvenation, Protection and Management) Authorities Order, 2016, dissolving the National Ganga River Basin Authority.
Compositions:
- The National Ganga Council is chaired by the Prime Minister.
- Union Minister for Water Resources, River Development and Ganga Rejuvenation will be the ex-officio Vice-Chairperson.
- The other ex-officio members of the council are from various ministries and CMs of the corresponding states among other stakeholders.
The National Ganga Council was formed under the Environment (Protection) Act (EPA),1986.
It has been given overall responsibility for the superintendence of pollution prevention and rejuvenation of River Ganga Basin, including Ganga and its tributaries.
National Mission for Clean Ganga(NMCG) acts as an implementation arm of the National Ganga Council.
It was established in the year 2011 as a registered society.
It has a two-tier management structure and comprises Governing Council and Executive Committee.

2. Election Commission says ready to roll out pilot for migrants to vote

Context:

Recently the Election Commission of India said that it has developed a prototype for a Multi-Constituency Remote Electronic Voting Machine which would enable remote voting by migrant voters.

More about the news:

EC has developed a prototype for a Multi-Constituency Remote Electronic Voting Machine (RVM).
The RVM can handle multiple constituencies from a single remote polling booth.
EC has invited all recognized eight national and 57 state political parties to demonstrate the functioning of the RVM.
If the pilot is successful then in the 2024 general elections voter portability can be fully implemented.

What is Remote Electronic Voting Machine (RVM):

In order to enable remote voting for domestic migrants, a technological solution was proposed in the form of Remote Electronic Voting Machine (RVM).
RVM relies on the creation of a robust electoral roll and identification mechanisms to stop duplicate voting, and allow voters to vote remotely, in a safe and controlled environment.
It was developed with the assistance of Bharat Electronics Limited (BEL) and the Electronics Corporation of India Limited (ECIL).
It is based on the currently used EVM system.

How does RVM work:

The RVMs are stand alone, non-networked systems, effectively providing the voter the same experience as currently used EVMs.
They will be set up in remote locations outside the state under similar conditions as current polling booths.
The unique feature of RVMs is that a single Remote Ballot Unit (RBU) will be able to cater to multiple constituencies (as many as 72) by using a dynamic ballot display board instead of the usual printed paper ballot sheet on EVMs.
The Ballot Unit Overlay Display (BUOD) will show the requisite candidates based on the constituency number read on the voter’s Constituency card.
A barcode scanning system will be used to read these cards.

What will be the voting process under RVM:

The voting process will be as follows:
- After verifying a voter’s identity, their constituency card will be read with a public display showing the constituency details and candidates.
- This will also be displayed privately, on the BUOD in the RVM’s RBU.
- The voter will then vote and each vote will be stored constituency-wise in the control unit of the voting machine.
- The VVPAT system is expected to work along the same lines with the new technology.

3. Italy approves rule to fine charities for migrant rescue

Subject :International Relations

Context:

Italy’s rightist government has approved measures to fine charities who rescue migrants at sea and impound their ships if they break a new, tougher set of rules

More about the news;

Italy’s rightist government has approved measures to fine charities who rescue migrants at sea and impound their ships if they break the new law.
A cabinet decree approved late said that those ships should request a port and sail to it “without delay” after a rescue, rather than remain at sea looking for other migrant boats in distress.
Currently the missions of charities, or non-governmental organizations (NGOs), in the central Mediterranean usually last several days, with charity boats completing different rescue operations and often taking hundreds of people onboard.
The NGOs’ ships must also inform those onboard that they can ask for international protection anywhere in the European Union.
Moreover, Captains breaching these rules risk fines of up to 50,000 euros ($53,175), and repeated violations can result in the impoundment of the vessel.

Some facts about Italy:

Italy is a country in Southern Europe
It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical region.
Italy shares land borders with France, Switzerland, Austria, Slovenia and the enclaved microstates of Vatican City and San Marino. It has a territorial exclave in Switzerland, Campione.
It is the third-most populous member state of the European Union, the sixth-most populous country in Europe, and the tenth-largest country in the continent by land area.
Italy’s capital and largest city is Rome.

4. Lok Adalats

Subject: Economy

Context:

The number of non-per-forming assets (NPAs) referred by banks to various recovery channels, including Lok Adalat and the Insolvency and Bankruptcy Code (IBC) route, in 2021-22 witnessed a four-fold jump compared to 2020-21 as lakhs of small ticket loans were referred for resolution to Lok Adalats of banks.

Details:

The recovery rate was however low at 2.3 per cent, as it is very difficult to recover loans from defaulters in the small ticket loan segment who willingly do not want to repay.

Debt Recovery:

Apart from Lok Adalat and IBC, the other routes for NPA recovery are Debt Recovery Tribunal (DRTs) and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act).

Debt Recovery by Lok Adalats:

Banks refer stressed accounts of up to Rs 20 lakh to Lok Adalats, organized by banks through the district legal services authority.

Lok Adalat is one of the alternative dispute redressal mechanisms, it is a forum where disputes/cases pending in the court of law or at pre-litigation stage are settled/ compromised amicably.
The Lok Adalats are formed to fulfil the promise given by the preamble of the Indian Constitution– securing Justice – social, economic and political of every citizen of India.

Constitutional basis:

Article 39A of the Constitution provides for free legal aid to the deprived and weaker sections of the society and to promote justice on the base of equal opportunity.
Articles 14 of the Constitution also make it compulsory for the State to guarantee equality before the law.

Statutory provisions:

Under the Legal Services Authorities Act, 1987 Lok Adalats have been given statutory status.
The decision made by the Lok Adalats is considered to be a verdict of a civil court and is ultimate and binding on all parties.

No appeal:

There is no provision for an appeal against the verdict made by Lok Adalat.
But, they are free to initiate litigation by approaching the court of appropriate jurisdiction by filing a case by following the required procedure, in exercise of their right to litigate.

Court fee:

There is no court fee payable when a matter is filed in a Lok Adalat.
Note: If a matter pending in the court of law is referred to the Lok Adalat and is settled subsequently, the court fee originally paid in the court on the complaints/petition is also refunded back to the parties.

Nature of Cases to be Referred to Lok Adalat:

Any case pending before any court.
Any dispute which has not been brought before any court and is likely to be filed before the court.
Provided that any matter relating to an offence not compoundable under the law shall not be settled in Lok Adalat.

5. Risk Indicators of Banks

Subject: Economy

Context:

GNPA ratio falls to seven-year low of 5% in Sept 2022: RBI

Details:

The gross non-performing assets (GNPA) ratio (seven-year low) – 5 per cent in September 2022 and would reach 4.9 per cent by September 2023.
As of September 2022, the net non-performing assets (NNPA) ratio (ten-year low) -1.3 per cent, whereas private sector banks’ (PVBs’) NNPA ratio was below 1 per cent.
The GNPA ratios of public sector banks (PSBs) may increase from 6.5 per cent in September 2022 to 9.4 per cent in September 2023, whereas it would go up from 3.3 per cent to 5.8 per cent for private sector banks (PVBs) and from 2.5 per cent to 4.1 per cent for foreign banks (FBs), under the severe stress scenario.
The banks are well capitalised
- The aggregate Capital to Risk Weighted Assets Ratio (CRAR) of 46 major banks is projected to slip from 15.8 per cent in September 2022 to 14.9 per cent by September 2023.
  - It may go down to 14 per cent in the medium stress scenario and to 13.1 per cent under the severe stress scenario, which is well above the minimum capital requirement, including capital conservation buffer (CCB) requirements-11.5 per cent.
  - None of the 46 banks would breach the regulatory minimum capital requirement of 9 per cent in the next one year, even in a severely stressed situation.
- The common equity tier-1 (CET1) capital ratio of the selected 46 banks may decline from 12.8 per cent in September 2022 to 12.1 per cent by September 2023 .
Banks’ credit concentration – showed that in the extreme scenario of the top three individual borrowers of respective banks failing to repay, no bank will face a drop in CRAR below the regulatory requirement of 9 per cent. However, three banks would see a decline in CRAR below 11.5 per cent – the regulatory minimum inclusive of CCB.

Concept:

Capital Adequacy Ratio (CAR)

It is the ratio of a bank’s capital to its risk. It is also known as the Capital to Risk (Weighted) Assets Ratio (CRAR).
In other words, it is the ratio of a bank’s capital to its risk-weighted assets and current liabilities. This ratio is utilized to secure depositors and boost the efficiency and stability of financial systems all over the world.
This is calculated by summing a bank’s tier 1 capital and tier 2 capitals and dividing the total by its total risk-weighted assets.

Capital is divided into three categories as per BASEL III norms:

Tier 1 capital is the bank’s core capital because it is the primary measure of the bank’s financial strength. The majority of core capital is made up of disclosed reserves (also known as retained earnings) and paid-up capital. It also includes non-cumulative and non-redeemable preferred stock.
- Tier 1 Capital is used to fund a financial institution’s business activities. It includes Common Equity Tier 1 (CET1) capital and Additional Tier 1 (AT1) capital.
  - Common Equity Tier 1 covers liquid bank holdings such as cash and stock. The CET1 ratio compares a bank’s capital against its assets.
  - Additional Tier 1 capital is composed of instruments that are not common equity.
Tier 2 capital – It is used as supplemental funding since it is less reliable than the first tier.It consists of undisclosed reserves, preference shares, and subordinate debt.
Tier 3 Capital: This type of capital includes market risk, commodities risk, and foreign currency risk and is the lowest quality of the three.

The capital conservation buffer

It was introduced in Basel III to ensure that banks have an additional layer of usable capital that can be drawn down when losses are incurred. The buffer was implemented in full as of 2019 and is set at 2.5% of total risk-weighted assets.
It must be met with Common Equity Tier 1 (CET1) capital only, and it is established above the regulatory minimum capital requirement.
Whenever the buffer falls below 2.5%, automatic constraints on capital distribution (for example, dividends, share buybacks and discretionary bonus payments) will be imposed so that the buffer can be replenished.

6. European Market Infrastructure Regulation (EMIR)

Subject: Economy

Context:

Engaging with ESMA but alternative arrangements also under deliberation: RBI report

Details:

ESMA has de-recognised six Indian clearing houses, including CCIL, effective May 2023, after Indian regulators showed reluctance to sign a revised agreement which gave the overseas regulatory body the right to audit, scrutinise and inspect the activities or operations of Indian clearing houses.

Market impact

With the withdrawal of CCP (central counterparty) recognition, large banks have to opt for indirect clearing settlements-introduces an element of systemic risk

Concept:

Counterparty:

A counterparty (sometimes contraparty) is a legal entity, unincorporated entity, or collection of entities to which an exposure of financial risk may exist.

Within the financial services sector, the term market counterparty is used to refer to governments, national banks, national monetary authorities and international monetary organisations such as the World Bank Group that act as the ultimate guarantor for loans and indemnities.

Also within financial services, counterparty can refer to brokers, investment banks, and other securities dealers that serve as the contracting party when completing “over the counter” securities transactions.

Example:

The Clearing Corporation of India (CCIL), supervised by RBI,
Indian Clearing Corporation (ICCL), Multi Commodity Exchange Clearing (MCXCCL), and NSE Clearing (NSCCL), supervised by Sebi;
India International Clearing Corporation and the NSE IFSC Clearing Corporation (NICCL), supervised by the International Financial Services Centre Authority (IFSCA).

Clearing Corporation of India Limited (CCIL)

CCIL was set up in April 2001 by banks, financial institutions and primary dealers, to function as an industry service organisation for clearing and settlement of trades in money market, government securities and foreign exchange markets.
The Clearing Corporation plays the crucial role of a Central Counterparty (CCP) in:
- The government securities,
- USD –INR forex exchange (both spot and forward segments) and
- Collaterised Borrowing and Lending Obligation (CBLO) markets.
- CCIL plays the role of a central counterparty whereby the contract between buyer and seller gets replaced by two new contracts – between CCIL and each of the two parties. This process is known as ‘Novation’.
  - Through novation, the counterparty credit risk between the buyer and seller is eliminated with CCIL subsuming all counterparty and credit risks.
- In addition to the guaranteed settlement, CCIL also provides non-guaranteed settlement services for National Financial Switch (Inter bank ATM transactions) and for rupee derivatives such as Interest Rate Swaps.
- CCIL is also providing a reporting platform and acts as a repository for Over the Counter (OTC) products.

Indian Clearing Corporation Limited

It was incorporated in 2007 as a wholly owned subsidiary of BSE Ltd. (“BSE”). ICCL carries out the functions of clearing, settlement, collateral management and risk management for various segments of BSE. ICCL undertakes to act as the central counterparty to all the trades it provides clearing and settlement services for.

Multi Commodity Exchange Clearing Corporation Limited (MCXCCL) has entered into an agreement with Multi Commodity Exchange of India Ltd (MCX), for providing Clearing and Settlement services to MCX.

NSE Clearing Limited (National Clearing) formerly known as National Securities Clearing Corporation Limited (NSCCL), a wholly owned subsidiary of NSE, was incorporated in August 1995. It was the first clearing corporation to be established in the country and also the first clearing corporation in the country to introduce settlement guarantee.

European Market Infrastructure Regulation (EMIR)

It was adopted by the EU in August 2012 as implementation of the G20 commitment to reduce systemic, counterparty and operational risk, and increase transparency in the OTC derivatives market.
It was also designed as a preventative measure to avoid fallout during possible future financial crises similar to the collapse that followed the Lehman Brothers bankruptcy in 2008.
Its focus is regulation of over-the-counter (OTC) derivatives, central counterparties and trade repositories.
- It provides guidance on reporting of derivative contracts, implementation of risk management standards and common rules for central counterparties and trade repositories.
- It establishes common rules for central counterparties, which interpose themselves between involved parties in a contract to serve as the focal point of each trade, and trade repositories, which collect and maintain all records of trades.
It also outlines three sets of obligations, including the clearing, reporting and risk mitigation of applicable products
- It requires mandatory clearing obligations for specific OTC derivative contracts -The obligations require that over-the-counter derivatives trades are cleared through central counterparties.
- EMIR requires that all entities entering into derivative contracts must submit reports to their corresponding trade repositories, outlining each over-the-counter trade.
  - EMIR covers entities that qualify for derivative contracts in regards to interest rate, equity, foreign exchange, or credit and commodity derivatives.
- The risk mitigation standards outlined in EMIR’s Article 11 impose risk management regulation on bilateral derivatives, as these derivatives are not appropriate for standard central counterparty clearing
Article 25 of EMIR requires CCPs in other global jurisdictions providing services to European banks to be approved by ESMA.
- India signed the pact in 2017, which lapsed in March 2022.

7. Green Finance

Subject: Economy

Context:

India’s updated climate change action plan requires financial commitments from Indian and international sources.

Details:

India’s updated climate change action plan:
- Achieving 50 per cent of installed electric generation capacity through non-fossil fuel-based sources i.e 500GW by 2030.
- Reducing emissions intensity of GDP by 45 per cent by 2030 compared to 2005 levels.
- Pledge to reach net zero by 2070.

Key suggestions:

The Parliamentary Standing Committee on Energy has recommended to MNRE -to explore the possibility of prescribing Renewable Finance Obligation on the lines of Renewable Purchase Obligation.
Indian banks have urged to include loans for electric vehicles and green hydrogen under the PSL category.
RBI’s Discussion Paper on Climate Risk and Sustainable Finance expects banks to set internal targets to increase green funding.

Green Finance:

Green financing is to increase the level of financial flows (from banking, micro-credit, insurance and investment) from the public, private and not-for-profit sectors to sustainable development priorities.

Global framework for Climate Financing:

To facilitate the provision of climate finance, the UNFCCC has established the financial mechanism to provide financial resources to developing country Parties.

The Adaptation Fund under Kyoto Protocol: It aims to finance concrete projects and programmes that help vulnerable communities in developing countries that are Parties to the Kyoto Protocol to adapt to climate change.
Green Climate Fund: It is the financial mechanism of the UNFCCC, established in 2010.
Global Environment Fund (GEF): GEF has served as an operating entity of the financial mechanism since the Convention came into force in 1994.
- It is a private equity fund focused on seeking long term financial returns by investments in clean energy under climate change.
- GEF also maintains two additional funds, the Special Climate Change Fund (SCCF) and the Least Developed Countries Fund (LDCF).

Climate Financing in India

Green financing related to climate change is majorly mobilised from National Clean Energy Fund (NCEF) and National Adaptation Fund (NAF).
The Government of India also provides funding through eight missions established under the National Action Plan for Climate Change.
It has established a Climate Change Finance Unit (CCFU) in the Ministry of Finance, which is the nodal agency for all climate change financing matters.

Renewable Purchase Obligation:

Under RPO, power distribution companies purchase a certain percentage of their requirements from renewable energy sources.
Renewable purchase obligations set targets for states for both solar and non-solar energy procurement as part of their RPO.
Under Renewable Purchase Obligation (RPO) bulk purchasers like discoms, open access consumers and capacitive users are required to buy a certain proportion of RECs(Renewable Energy Certificates). They can buy RECs from renewable energy producers.
- Renewable Energy Certificates (RECs) is a market-based instrument to promote renewable sources of energy and development of the market in electricity.
- One REC is created when one megawatt hour of electricity is generated from an eligible renewable energy source.
RPO was instituted in 2011, it is a mandate that requires large power procurers to buy a predetermined fraction of their electricity from renewable sources.
The proportion of renewable energy for utilities is fixed by the central and state electricity regulatory commissions.
In India, RECs are traded on two power exchanges — Indian Energy Exchange (IEX) and Power Exchange of India (PXIL).
The price of RECs is determined by market demand, and contained between the ‘floor price’ (minimum price) and ‘forbearance price’ (maximum price) specified by the Central Electricity Regulatory Commission (CERC).

8. Agri share in GVA

Subject: Economy

Context:

The GVA of agriculture, forestry and fishing grew by 4.5 per cent in H1 FY23

Details:

Rabi sowing covers 89 per cent of the total area sown in the 2021 season
The agricultural GVA growth estimated at 3 percent for the last quarter of the current fiscal is due to base effect.
The agri GVA growth in Q4 of FY22 was over 4 per cent.
Overall farm sector GVA growth is projected to rise to 3.9 per cent in FY23 as against 3 per cent registered in FY22.
The GVA of other sub-sectors such as livestock and fisheries, recorded a CAGR of 6 per cent and 6.7 per cent, respectively during FY 2017-21, higher than the 2 per cent growth seen in the crops sector in the period.

Concept:

Agri-GVA

The agriculture and allied sectors grew at a positive growth rate of 3.6 per cent during 2020-21 and 3.9 per cent in 2021-22 being the least impacted due to the Covid 19.
The growth of agriculture & allied sectors is owed to the growth in the four constituents of agriculture & allied sectors namely crops, livestock, forestry & logging and fishing & aquaculture. It is observed that livestock and fisheries have been experiencing buoyant growth and have helped the sector perform well.

Growth of Agriculture and Allied Sectors (per cent)

The share of the sector in total Gross Value Added GVA of the economy has a long-term trend of around 18 per cent. The share of the agriculture & allied sector in total GVA, however, improved to 20.2 per cent in the year 2020-21 and 18.8 per cent in 2021-22.

The contribution of livestock and fisheries sectors in agricultural GVA have been rising while the share of the crop sector has declined.

According to official data, the livestock sector grew at a compound annual growth rate (CAGR) of 8.15% over the five years ending 2019-20. In contrast, the production of rice, wheat and coarse cereals expanded at CAGRs of 2.7%, 2.9% and 4.8% respectively between 2015-16 to 2020-21.
Production of horticultural crops — fruits, vegetables, plantation and spices which contribute a third of agriculture GVA, have witnessed a sustained growth in recent years.

9. Uzbekistan fallout: Union government issues ‘Ethylene Glycol (Quality Control) Order, 2022’

Subject: Science and Technology

Context:

A day after Uzbekistan alleged 18 child deaths in Samarkand from consumption of a medicinal syrup manufactured by an Indian drugmaker. The Department of Chemicals and Petrochemicals with the Ministry of Chemicals and Fertilizers issued a gazette notification titled Ethylene Glycol (Quality Control) Order, 2022 on December 29.

What is the issue?

Uzbekistan alleged 18 children died in Samarkand from consumption of a medicinal syrup manufactured by an Indian drugmaker named Marion Biotech.

Details:

The syrup it manufactured contained ethylene glycol.
A joint inspection of the Noida facility of Marion Biotech, was carried out by a Uttar Pradesh Drug Control and Central Drugs Standard Control Organisation team on receipt of the information.

Who is Marion Biotech:

Marion Biotech is a drug company based in Noida, Uttar Pradesh.
It is a licensed manufacturer and holds a licence for manufacturing of Dok1 Max syrupand tablets for export purposes granted by UP Drug Control.
Marion Biotech does not sell Dok-1 Max in India and its only export has been to Uzbekistan.

Details of theEthylene Glycol (Quality Control) Order, 2022:

The order came after the Centre consulted the Bureau of Indian Standards on the matter.
Certification and enforcement authority:
- In respect of specific goods or articles, the Bureau of Indian Standards shall be the certifying and enforcing authority.
Penalty:
- Any person who contravenes the provisions of this Order shall be punishable under the provisions of the said Act.

10. Ukraine: 213 attacks on power infrastructure by Russia spark disaster fears

Context:

As many as 213 incidents of military actions on energy infrastructure such as thermal power plants, nuclear power plants and electricity substations have been reported in Ukraine since Russia’s invasion on February 24, 2022.
This could lead to environmental and humanitarian disasters with potential transboundary effects.

Details:

Ukraine has 16 thermal power plants, 49 combined heat and power plants, three hyperaccumulating power plants and eight hydropower plants.
The country also has four operational nuclear power plants with 15 reactors.
As many as 63 incidents of damage to the infrastructure were verifiable.

Database collection and verification:

Verification of incidents is performed together with PAX’s partner, the Centre for Information Resilience (CIR), as well as with the help of satellite imagery from the United States National Aeronautics and Space Administration and the European Space Agency as well as commercial very-high-resolution imagery provided by Planet and MAXAR Technologies, an American space technology company.

Most affected regions:

The largest number of incidents occurred in the Zaporizhzhya, Donetsk, Kharkiv, Dnipropetrovsk, Kyiv and Mykolaiv regions.

War led disasters awaiting in Ukraine:

1. Threat of Nuclear disaster:

Currently, only one external 750 kV power line is operating instead of the four that were in operation before the invasion.
Emergency diesel generators are used during these periods to provide cooling systems for the plant’s six reactors in order to prevent the start of a meltdown.
When the cooling system stops functioning, the fuel rods of the reactors begin to melt.
This process led to the nuclear disaster at the Fukushima nuclear power plant in Japan.
The power supply system was destroyed by a tsunami and after three hours the rods began to melt.

2. Water and Air Pollution:

The disruption of power supply to the Donbas coal basin, which has 220 coal mines, could stop the pumping out of water used during mining. This can lead to the accumulation of mine water in rivers and groundwater, causing massive water pollution.
Inadequate steam production due to power shortage could stop the coke oven gas purification process part of coke production, leading to unprecedented air pollution.

11. A look at Malik Ahmed and Ahilyabai Holkar

Subject: History

Context:

The Maharashtra Education Minister has sought a proposal from the district administration to rename the Western Maharashtra city of Ahmednagar as ‘PunyashlokAhilyadevi Nagar’, after the 18th century Malwa queen, Ahilyabai Holkar.

Details:

In August this year, the Maharashtra Assembly unanimously passed two separate resolutions to send a proposal to rename Aurangabad as Chhatrapati Sambhaji Nagar and rename Osmanabad as Dharashiv.

What is the procedure of renaming a city?

The task of renaming a city is given to the State Legislators.
The procedure differs from state to state but the regulations remain the same.
The first step involves raising a request in the form of a resolution by any MLA, which proposes the renaming of any particular city or street.
On the basis of the request of the MLA, the issue would be deliberated upon and the consequences of the same shall be discussed upon.
The final step involves voting on the validity of the resolution.
If a simple majority is attained in favour of the resolution, the said resolution shall be declared passed.
The State Legislation on the basis of the majority view shall make the necessary changes in the name of the state or city public.
The proposal will go to the Centre for approval before the city is officially renamed.

Historical significance of Ahmednagar:

Ahmednagar lies in the Western region of Maharashtra.
According to the district’s official website, it has been a part of some prominent kingdoms, starting from 240B.C. when the vicinity is mentioned in the reference to the Mauryan Emperor Ashoka.
The Rashtrakuta Dynasty, the Western Chalukyas, and then the Delhi Sultanate ruled over the region in the Mediaeval period.
In the last case, the rule was not direct, and a revolt by Afghan soldier Alladin Hasan Gangu led to the establishment of the Bahmani kingdom in the Deccan.

How did the city of Ahmednagar first get its name?

After some time, Ahmednagar (then known as Nizamshahi) became one of the five independent kingdoms to emerge from that empire.
In 1486,Malik Ahmad Nizam Shah became the Bahmani Sultanate’s Prime Minister.
He fought back an attempt by the king to dislodge him from power, and defeated the army of the Bahamani kingdom near Ahmednagar in May 1490.
Finally, in 1494 he laid the foundation of a city close to where he defeated the army, on the left bank of Sina river, and named it after himself: Ahmednagar.

Hindu origin of Nizam shah:

Jawaharlal Nehru, in his book A Discovery of India (1946), wrote of him, “Ahmad Nizam Shah, the founder of Ahmadnagar in 1490, was the son of Nizam-ul-Mulk Bhairi, a minister of the Bahmani kings.
This Nizam-ul-Mulk was the son of a Brahmin accountant named Bhairu. Thus the Ahmednagar dynasty was of indigenous origin.”
Nizam Shah also later captured the fort of Daulatabad and stationed his army there.
By his kindness, peaceful demeanour & efficiency, he could win the loyalty of the local and foreign Muslims and also of the Maratha peasants and worriers.
Since his origin was Hindu, he found no difficulty in winning over the confidence of Brahmins, who were highly regarded by the Hindus.

Who was Ahilyabai Holkar?

Born in Chondi village of Ahmednagar to the village head Mankoji Shinde, on May 31, 1725, Ahilyabaiwas one of the few women rulers of Medieval India.
While the education of girls and women was rare at that time, Mankojiinsisted on it for his daughter.
When she was eight years old, Malhar Rao Holkar, the army commander to Peshwa Bajirao, is believed to have spotted her at a temple service in Chondi.
Impressed by her devotion and character, he decided to get his son, Khande Rao, married to her.
Ahilyabaitook control of Malwa after her husband’s death in the Battle of Kumbheragainst the king of Bharatpur in 1754.
She established Maheshwar (in Madhya Pradesh) as the seat of the Holkar Dynasty.
She defended the Malwa state against intruders and personally led armies into battle, with Tukoji Rao Holkar as her military commander.

Role in administration and temple-building:

Nehru described Holkar’s rule, which lasted for thirty years (1765-1795), as “almost legendary as a period during which perfect order and good government prevailed and the people prospered. She was a very able ruler and organiser, highly respected during her lifetime.”
Under her rule, Malwa remained an oasis of stability and peace.
Under Holkar, the city of Maheshwar became a literary, musical, artistic and industrial centre, and she helped establish a textile industry there, which is now home to the famous Maheshwari sarees.
In 1780, she had the Kashi Vishwanath temple in Varanasi rebuilt, nearly a century after Mughal king Aurangzeb ordered its destruction.
Apart from holy sites like Badrinath, Dwarka, Omkareshwari, Gaya, and Rameswaram, Holkar also supported the construction of resting lodges for travellers, and of public ghats.
In 1783Maharani Ahalyabai Holkarof Indore built another Somnath temple next to the original site, which was in serious disrepair.

12. Rejuvenation of small rivers under the NREGS highlight of PM meet

Subject: Geograpjhy

Context:

The centre will showcase its initiative of rejuvenating around 75 small rivers, mainly in UP, over the past four years using funds under the national rural job guarantee scheme during the second meeting of the National Ganga Council.

Details of the news:

It will be the first meeting since 2019 of the Council, which is the apex authorityresponsible for cleaning the river and includes the Chief Ministers of Uttar Pradesh, Uttarakhand, Bihar, Jharkhand and West Bengal as members.
The Council also includes several Union ministers, including the Finance Minister, Rural Development Minister and Power Minister.
The NMCG has proposed making urban river management plans (URMPs) and river sensitive master planning mandatory for river cities.
Some of the key small rivers that are being rejuvenated include Gomti, Sai, Mandakini and Varuna in UP.

National Mission for Clean Ganga:

The National Mission for Clean Ganga (NMCG) is implemented by the National Council for Rejuvenation, Protection and Management of River Ganga also known as the National Ganga Council.
This mission was established on 12th August 2011 under the Societies Registration Act,1860 as a registered society.
Objectives:
- The mission incorporates rehabilitating and boosting the existing STPs (Sewage Treatment Plants) and instant short-term steps to curb pollution at exit points on the riverfront in order to check the inflow of sewage.
- To maintain the continuity of the water flow without changing the natural season variations.
- To restore and maintain the surface flow and groundwater.
- To regenerate and maintain the natural vegetation of the area.
- To conserve and regenerate the aquatic biodiversity as well as the riparian biodiversity of the river Ganga basin.
- To allow participation of the public in the process of protection, rejuvenation and management of the river.

Initiatives Related to cleaning of Ganga river:

NamamiGange Programme: It is an Integrated Conservation Mission, approved as a ‘Flagship Programme’ by the Union Government in June 2014 to accomplish the twin objectives of effective abatement of pollution and conservation and rejuvenation of National River Ganga.
Ganga Action Plan: It was the first River Action Plan that was taken up by the Ministry of Environment, Forest and Climate Change in 1985, to improve the water quality by the interception, diversion, and treatment of domestic sewage.
- The National River Conservation Plan is an extension to the Ganga Action Plan. It aims at cleaning the Ganga river under Ganga Action Plan phase-2.
National River Ganga Basin Authority (NRGBA): It was formed by the Government of India in the year 2009 under Section-3 of the Environment Protection Act, 1986.
- Ganga was declared as the ‘National River’ of India in
Clean Ganga Fund: In 2014, it was formed for cleaning up of the Ganga, setting up of waste treatment plants, and conservation of biotic diversity of the river.
Bhuvan-Ganga Web App: It ensures involvement of the public in monitoring of pollution entering into the river Ganga.
Ban on Waste Disposal: In 2017, the National Green Tribunal banned the disposal of any waste in the Ganga.

Ganga river basin map

13. OBC Quota in Local Body Election

Subject :Polity

Context: Uttar Pradesh government moved the Supreme Court against an Allahabad High Court direction to hold local body elections in the State without reservation for Other Backward Classes (OBC).

Background of the case:

Uttar Pradesh government had issued a draft notification for the reservation of Other Backward Classes (OBCs) in urban local body elections.
The verdict comes on the back of PILs challenging the state’s OBC reservation draft.
It was alleged that it was prepared without following the “triple test” formula prescribed by the Supreme Court.
The Court said that OBC reservation in local body polls cannot be provided until conditions mandated in the “triple test” are complied with.

About Triple Test:

In 2010, the SC had laid down the ‘triple test’. These triple conditions are:
- Setting up a dedicated commission to conduct “rigorous empirical inquiry into the nature and implications of the backwardness qua local bodies, within the state”.
- Making of recommendations by the commissionon the number of seats to be reserved for OBCs “local body wise”.
- Ensuring that, cumulatively, seats reserved for SCs, STs and OBCs do not exceed 50 percent.

About 2010 Judgement:

The five-judge Constitution Bench decision in Krishnamurthy (Dr.) v. Union of India (2010) wherein the Supreme Court had interpreted Article 243D(6) and Article 243T(6), which permit reservation by enactment of law for backward classes in panchayat and municipal bodies respectively, to hold that barriers to political participation are not the same as that of the barriers that limit access to education and employment.
However, for creating a level playing field, reservation may be desirable as mandated by the aforementioned Articles which provide a separate constitutional basis for reservation, as distinct from what are conceived under Article 15 (4) and Article 16 (4) which form the basis for reservation in education and employment.
The court had explained that though social and economic sense could act as a barrier to effective political participation and representation, such backwardness cannot be the sole criterion for identifying the backward classes inadequately represented politically.

Reservation of Seats in Local Body Elections

Reservation of seats for scheduled 0063astes and scheduled tribes:
- The 73rd & 74th Constitutional Amendment Act of 1992 provides for the reservation of seats for scheduled castes and scheduled tribes in every panchayat/municipality (i.e., at all three levels) in the proportion of their population to the total population in the panchayat area/municipal area.
Reservation of offices of chairperson:
- Further, the state legislature shall provide for the reservation of offices of chairperson in the panchayat/municipality at any other level for the SCs and STs.
Reservations for women:
- The act provides for the reservation of not less than one-third of the total number of seats for women (including the number of seats reserved for women belonging the SCs and STs).
- Further, not less than one-third of the total number of offices of chairpersons in the panchayats/municipality at each level shall be reserved for women.
Reservations for Backward Classes:
- The act also authorises the legislature of a state to make any provision for reservation of seats in any panchayat/municipality or offices of chairperson in the panchayat/municipalities at any level in favour of backward classes.

14. Central Board of Film Certification

Subject :Polity

Context: Censor board wants ‘changes’ in ‘Pathaan’ movie.

About Central Board of Film Certification:

Central Board of Film Certification (CBFC) is a statutory body under Ministry of Information and Broadcasting, regulating the public exhibition of films under the provisions of the Cinematograph Act 1952.
Films can be publicly exhibited in India only after they have been certified by the Central Board of Film Certification.
The Board consists of non-official members and a Chairman (all of whom are appointed by Central Government) and functions with headquarters at Mumbai.
It has nine Regional offices, one each at Mumbai, Kolkata, Chennai, Bangalore, Thiruvananthapuram, Hyderabad, New Delhi, Cuttack and Guwahati. The Regional Offices are assisted in the examination of films by Advisory Panels.
The members of the panels are nominated by Central Government by drawing people from different walks of life for a period of 2 years.
Films are certified under 4 categories.
- “U” (unrestricted public exhibition)
- “A” (restricted to adult audiences]
- “U/A” (unrestricted public exhibition subject to parental guidance for children below the age of twelve) and
- “S” (restricted to specialized audiences such as doctors or scientists).
In addition to these certifications the board may also refuse to certify.
Refuse to certify — The board’s guidelines are:
- Anti-social activities (such as violence) may not be glorified
- Criminal acts may not be depicted
- The following is prohibited:
  - Involvement of children in violent acts or abuse
  - Abuse or ridicule of the physically or mentally handicapped
  - Unnecessary depictions of cruelty to animals
- Gratuitous violence, cruelty, or horror
- No scenes encouraging alcohol consumption, drug addiction or smoking
- No vulgarity, obscenity, depravity, double entendres or scenes degrading women, including sexual violence (as much as possible)
- No denigration by race, religion or other social group
- No promotion of sectarian, obscurantist, anti-scientific and anti-national attitudes
- Relations with foreign countries should not be affected.
- No national symbols or emblems, except in accordance with the Emblems and Names (Prevention of Improper Use) Act, 1950 (12 of 1950)

15. Vibrant Villages Programme

Context: Union Home Minister asks border-guarding forces to strengthen Vibrant Village Programme and ensure welfare programmes are implemented.

About Vibrant Villages Programme:

Vibrant Villages Programme (VVP) has been announced in the Finance Minister’s Budget Speech 2022.
The programme envisages coverage of border villages on Northern border having sparse population, limited connectivity and infrastructure, which often get left out from the development gains.
The activities will include construction of village infrastructure, housing, tourist centres, road connectivity, provisioning of decentralized renewable energy, direct to home access for Doordarshan and educational channels, and support for livelihood generation.
Additional funding for these activities will be provided.
Existing schemes will be converged and their outcomes will be defined and monitored on a constant basis.
Aim and objectives:
- To enhance infrastructure in villages along India’s border with China, in states like Himachal Pradesh, Uttarakhand, and Arunachal Pradesh.
- Border villages with sparse population, limited connectivity and infrastructure often get left out from the development gains.

16. Karnataka carves out separate categories for Veerashaivas, Vokkaligas

Subject :Polity

Context: With pressure mounting for higher reservation in education and employment from politically influential Panchamasali (Veerashaiva Lingayat subsect) and Vokkaligas, the Karnataka government on Thursday decided to create separate OBC reservation categories.

More about news:

The Cabinet, which met in Belagavi on Thursday, decided to create 2C and 2D to accommodate the castes that figured in 3A (Vokkaliga) and 3B (VeerashaivaLingayat) till now. The decision was based on the interim report on the demand of several communities for increase in reservation, submitted by the Karnataka State Backward Classes Commission.
The government, however, deferred announcement on the quantum of reservation to the newly established categories till the final report of the Karnataka Permanent Backward Classes Commission is submitted, while stating that it would be increased “at least by 2% to 3%.”

Present Karnataka’s reservation policy:

Reservations for Scheduled Castes, Scheduled Tribes, Backward Classes, and Muslims are capped at 50% in accordance with an order of the Supreme Court.
The quota break-up is as follows: Category I (Backward Classes) 4%; Category II A (OBCs) 15%; Category II B (Muslims) 4%; Category III A (Vokkaligas, etc.) 4%; Category III B (Lingayats, Marathas, Bunts, Christians) 5%; SCs 15%; and STs 3%.
A total 95 communities and their sub-sects are recognized as Backward Classes, and 102 communities and their sub-sects as OBCs.

Major communities in Karnataka:

The VeerashaivaLingayats are considered the single largest entity in Karnataka’s 6-crore population, making up around 17%.
Vokkaligas are at 15%, Muslims 9%, and Kurubas around 8%.
The Backward Classes block of various sub-castes minus the Kurubas make up around 25%. SCs are around 15%, and STs 3%.

Present demand:

The PanchamasaliLingayats are demanding inclusion in the OBC category to be eligible to avail 15% reservations; and the entire Veerashaiva Lingayat community too, is demanding OBC categorization for 15% reservation.
The Vokkaligas, who are a dominant community, are also demanding inclusion in the OBC category.

Reservation provisions in India for OBC

The Kalelkar Commission, set up in 1953, was the first to identify backward classes other than the Scheduled Castes (SCs) and Scheduled Tribes (STs) at the national level.
The Mandal Commission Report, 1980 estimated the OBC population at 52% and classified 1,257 communities as backward.
It recommended increasing the existing quotas, which were only for SC/ST, from 22.5% to 49.5% to include the OBCs.
The central government reserved 27% of seats in union civil posts and services for OBCs [Article 16(4)].
The Constitution refers to the term ‘backward classes’ in Articles 15(4), 16(4) and 340(1).
Articles 15(4) and 16(4) empower the State to make special provisions for any socially and educationally backward class of citizens
In 2008, the Supreme Court directed the central government to exclude the creamy layer (advanced sections) among the OBCs.
The 102nd Constitution Amendment Act, 2018 provided constitutional status to the National Commission for Backward Classes (NCBC), which was previously a statutory body under the Ministry of Social Justice and Empowerment.

17. Small Savings Schemes

Subject :Economy

Context: With inflation averaging at more than 6% through 2022 and interest rates rising, there is an economic rationale for returns on small savings instruments such as the Public Provident Fund (PPF) to be raised for the first quarter of 2023, but the government may opt to maintain status quo to keep its own borrowing costs in check.

About Small Savings Schemes:

Small Savings Schemes are a set of savings instruments managed by the central government with an aim to encourage citizens to save regularly irrespective of their age.
They are popular as they provide returns higher than bank fixed deposits, sovereign guarantee and tax benefits.
Since 2016, the Finance Ministry has been reviewing the interest rates on small savings schemes on a quarterly basis.
All deposits received under various schemes are pooled in the National Small Savings Fund.
As per Reserve Bank of India calculations, the rates on these schemes, based on a formula linked to the yields on government securities (G-secs), are 44 to 77 basis points (bps) below their formula-implied rates. One bp equals 0.01%. As per the formula, the PPF return should have been set at 7.72% instead of the present 7.1% and rates on nine of the dozen schemes were 55 bps to 77bps lower than the formula-linked rate.
The money in the fund is used by the Centre to finance its fiscal deficit.

Types of Schemes:

The schemes can be grouped under three heads –

Post office deposits
Savings certificates and
Social security schemes

1. Post Office Deposits

Under this we have the savings deposit, recurring deposit and time deposits with 1, 2, 3 and 5 year maturities and the monthly income account.
Can be opened individually or jointly with an initial investment of Rs 500.
The recurring deposit compounded quarterly matures after 60 months from the date of opening.
It allows investors to save on a monthly basis with a minimum deposit of Rs 100 per month.
Investments under the 5-year time deposit up to Rs 1.5 lakh further qualifies for benefit under section 80C of Income Tax Act.

2. Savings Certificates

Under this, we have the National Savings Certificate and the Kisan Vikas Patra.
The interest that is earned is reinvested into the scheme every year automatically.
The NSC also qualifies for tax saving under Section 80C of the income tax act.
The Kisan Vikas Patra, which is open to everyone, doubles your one-time investment at the end of 124 months.The minimum investment amount is Rs 1000 while there is no upper limit.

3. Social security schemes

In the third head of social security schemes, there is Public Provident Fund, Sukanya Samriddhi Account and Senior Citizens Savings Scheme.

Public Provident Fund

The Public Provident Fund is a popular saving option for long term goals like retirement.
It qualifies for tax benefit under Section 80C of the Income Tax Act.
Upon maturity of the account after 15 years, it can be extended indefinitely in blocks of 5 years.
The accumulated amount and interest earned are exempt from tax at the time of withdrawal.

Sukanya Samriddhi Account

The Sukanya Samriddhi Account was launched in 2015 under the Beti Bachao Beti Padhao campaign exclusively for a girl child.
The account can be opened in the name of a girl child below the age of 10 years.
The scheme is eligible for tax benefit under Section 80C of the Income Tax Act.
The tenure of the deposit is 21 years from the date of opening of the account and a maximum of Rs 1.5 lakh can be invested in a year.

Senior Citizen Savings Account

And finally, the 5-year Senior Citizen Savings Account can be opened by anyone who is over 60 years to age.
It qualifies for Section 80C tax benefit.
These time-tested and safe modes of investments don’t offer quick returns, but are safer when compared to market-linked schemes.