Daily Prelims Notes 13 December 2022

December 13, 2022
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Daily Prelims Notes

13 December 2022

Table Of Contents

1. Kochi-Muziris Biennale

Subject : History

Context:

Recently, the fifth edition of the Kochi-Muziris Biennale opened displaying works of over 90 artists from across the globe in varied media.

What are art Biennales:

A biennale is an international large-scale showcase of art that takes place every two years at a particular site, centered around a curatorial theme.
The theme for 2022: “In Our Views Flow Ink and Fire”.
One of the most prestigious and oldest biennales in the world is the Venice Biennale, which was established through a resolution by the city council in 1893 to celebrate national artistic talent.
With its rising popularity, the 1900s saw the emergence of Biennales across the world, with Bienal de Sao Paulo being instituted as the first non-European biennial in 1951.
In 2009, a global Biennale Foundation was established with an aim to create a platform for dialogue, networking, and knowledge sharing among contemporary art biennials around the world.

More about Kochi-Muziris Biennale:

The Kochi Muziris Biennale was founded in 2011 by Kerala-born, Mumbai-based artists Bose Krishnamachari and Riyas Komu.
It aims to create a platform that will introduce contemporary, global visual art theory and practice to India.
It is the largest of its kind in South Asia and is organized by the Kochi Biennale Foundation at Kochi, Kerala.
The Foundation is a non-profit charitable trust engaged in promoting art and culture and educational activities in India.
It works throughout the year to strengthen contemporary art infrastructure and to broaden public access to art across India through a diverse range of programmes.
The 2022 edition of the Kochi-Muziris Biennale will display the works of over 90 artists from across the world in various media.
It is curated by Singapore-based Indian-origin artist Shubigi Rao.
The central theme for this event is “In Our Views Flow Ink and Fire”.
This is a four-month-long event will be organized in multiple venues in Kochi

2. Bill to set up carbon credit trading passed

Subject : Environment

Context:

The Rajya Sabha passed the Energy Conservation (Amendment) Bill, 2022. The Lok Sabha had passed the amendment in August, 2022.

What is Energy Conservation (Amendment) Bill, 2022:

The Bill seeks to amend the 2001 Act to
- Facilitate the achievement of COP-26 goals.
- Introduce concepts such as mandated use of non-fossil sources and carbon credit trading to ensure faster decarbonisation of the Indian economy.

What are the key features of the bill:

Carbon credit trading: The Bill empowers the central government to specify a carbon credit trading scheme. Carbon credit implies a tradable permit to produce a specified amount of carbon dioxide or other greenhouse emissions.
Obligation to use non-fossil sources of energy: The Act empowers the central government to specify energy consumption standards for designated consumers to meet a minimum share of energy consumption from non-fossil sources.
- Designated consumers include:

1. industries such as mining, steel, cement, textile, chemicals, and petrochemicals,
2. transport sector including Railways,
3. commercial buildings, as specified in the schedule.

Energy conservation code for buildings: The bill empowers the central government to specify norms for energy efficiency and conservation, use of renewable energy, and other requirements for green buildings.
Under the Act, the energy conservation code applies to commercial buildings:

Erected after the notification of the Code,
Having a minimum connected load of 100 kilowatt (kW) or contract load of 120 kilo volt ampere (kVA).

Standards for vehicles and vessels: Under the bill, the energy consumption standards may be specified for equipment and appliances which consume, generate, transmit, or supply energy. The Bill expands the scope to include vehicles as defined under the Motor Vehicles Act, 1988, and vessels like ships and boats.
Composition of the governing council of BEE: The Act provides for the setting up of the Bureau of Energy Efficiency (BEE). The Bill proposes to increase the number of members of the BEE from 20-26 to 31-37.

What is Bureau of Energy Efficiency (BEE):

The Government of India had set up the Bureau of Energy Efficiency (BEE) in March, 2002 under the provisions of the Energy Conservation Act, 2001.
The objective of BEE is to assist in reducing the energy intensity of the Indian economy.
BEE coordinates with designated consumers, designated agencies and other organizations and recognizes, identifies and utilizes the existing resources and infrastructure, in performing the functions assigned to it under the Energy Conservation Act.
BEE comes under Ministry of Power

3. Rare Diseases (NPRD)

Subject :Government schemes

Context:

Recently concerns over the benefits of the National Policy of Rare Diseases (NPRD) not reaching any patient with rare diseases were raised in Parliament during question hour

About National Policy of Rare Diseases (NPRD)

The National Policy of Rare Diseases (NPRD) was notified in March 2021.
Aim:
- To increase focus on indigenous research and local production of medicines.
- To lower the cost of treatment of rare diseases.
- To screen and detect rare diseases early at early stages, which will in turn help in their prevention.
Categorization:

The policy has categorized rare diseases into three groups:

- Group 1: Disorders amenable to one-time curative treatment.
- Group 2: Those requiring long-term or lifelong treatment.
- Group 3: Diseases for which definitive treatment is available but challenges are to make an optimal patient selection for benefit, very high cost, and lifelong therapy.
Financial Support:
Provision for financial support of up to Rs. 50 lakhs to the patients suffering from any category of Rare Diseases and for treatment in any of the Centre of Excellence (CoE) mentioned in NPRD-2021, outside the Umbrella Scheme of Rashtriya Arogaya Nidhi.

Rashtriya Arogya Nidhi: The Scheme provides financial assistance to patients, living below the poverty line (BPL) and who are suffering from major life-threatening diseases, to receive medical treatment at any of the super speciality Government hospitals/institutes.

Centres of Excellence:
- The policy aims to strengthen tertiary health care facilities for the prevention and treatment of rare diseases through designating eight health facilities as ‘Centres of Excellence and these will also be provided one-time financial support of up to Rs. 5 crores for the upgradation of diagnostics facilities.

What are ‘rare diseases?

These are often serious, chronic, and life-threatening conditions.
WHO defines a rare disease as an often-debilitating lifelong disease or disorder with a prevalence of 1 or less, per 1000 population.
However, different countries have their own definitions.
A disease or disorder is defined as rare in India when it affects fewer than 1 in 2500 individuals.
There may be as many as 7,000 rare diseases, individual diseases may be rare, and the total number of people with a rare disease is large.
Examples: Lysosomal Storage Disorders (LSD), Gaucher disease, Pompe disease, cystic fibrosis, muscular dystrophy, spina bifida, haemophilia, MPS 1 and 2, and Fabry disease.

Treatment:

About 95% of rare diseases have no approved treatment even when a correct diagnosis is made.
Rare diseases are also called ‘orphan diseases’ and drugs to treat them are called “orphan drugs” because of the expensive nature of available drugs.

4. Why these winters are not wintery enough

Subject : Geography

Context-

The days have been unusually warm for winter this December with the maximum temperature remaining above normal.
This is the second-highest maximum temperature for December from 2015 onwards, India Meteorological Department (IMD) data shows.

Reason-

As per the IMD, fewer western disturbances are affecting the region this year.

What are western disturbances-

Western Disturbances develop in the mid-latitude region (north of the Tropic of Cancer), not in the tropical region, therefore they are called mid-latitude storms or extra-tropical storms.
It is a term coined by an Indian Meteorologist for the weather phenomenon which is propagated from the West.
The phrase Western Disturbance was first used in published literature in 1947. However, its precursor Winter Disturbance was coined earlier in 1931.
Western Disturbances are low-pressure systems, embedded in western winds (westerlies) that flow from west to east.
The low pressure typically forms over the Mediterranean Sea and travels over Iran, Iraq, Afghanistan, and Pakistan before entering India loaded with moisture.
These moisture-laden western disturbances eventually come up against the Himalayas and get blocked, as a consequence, the moisture gets trapped and precipitation is shared in the form of snow and rain over Northwest India and sometimes, other parts of North India.
An average of 4-5 western disturbances form during the winter season and the rainfall distribution and amount varies with every western disturbance.
Sometimes, when western disturbances become more intense in the Indian Region, they can extend even up to 15 degrees north, resulting in rainfall up to north Maharashtra, Gujarat, and the entire Madhya Pradesh to the south.

Impact

It causes the most winter and pre-monsoon season rainfall across North-West India.
This phenomenon is usually associated with a cloudy sky, higher night temperatures, and unusual rain. It is estimated that India gets close to 5-10% of its total annual rainfall from western disturbances.
In winter, western winds bring moderate to heavy rain in low-lying areas and heavy snow to mountainous areas of the Indian subcontinent.
Precipitation during the winter season has great importance in agriculture particularly for rabi crops including wheat, barley, mustard, gram, lentil, etc.
They start declining after winter. During the summer months of April and May, they move across North India and at times help in the activation of monsoon in certain parts of northwest India.
During the monsoon season, western disturbances may occasionally cause dense clouding and heavy precipitation.
Weak western disturbances are associated with crop failure and water problems across north India.
Strong western disturbances can help residents, farmers and governments avoid many of the problems associated with water scarcity.

5. CSE analysis finds Delhi-NCR winter pollution levels down in October-November

Subject : Environment

Context-

The first phase of this year’s winter in the Delhi-national capital region (NCR) has shown early signs of improvement in air quality, according to Delhi-based non-profit the Centre for Science and Environment.

More in details-

The average levels of fine particulate matter (PM) went down to 142 microgrammes per cubic metre (µg/m3) for October and November. This is the lowest level recorded since the city installed these stations in 2018.
The fine particulate levels in the national capital this October-November were 15 per cent and 18 per cent lower compared to October-November of 2018 from a city-wide average of 37 Continuous Ambient Air Quality Monitoring Stations (CAAQM) and 10 older stations, respectively.
Delhi was the most polluted major city in NCR, with an October-November average of 142 µg/m3. Gurugram, with 134 µg/m3 and Ghaziabad, with 131 µg/m3, followed the national capital in the list.
The total number of farm stubble fires reported this year from Punjab, Haryana and Delhi was 37 per cent and 42 per cent lower than the October-November of 2021.

About the Commission for Air Quality Management (CAQM):

The Commission was first formed by an ordinance in October 2020.
The erstwhile Environment Pollution (Prevention and Control) Authority, or EPCA had been dissolved to make way for the Commission.
The Commission is a statutory authority.
The Commission will supersede bodies such as the central and state pollution control boards of Delhi, Punjab, Haryana, UP and Rajasthan.
In 2021, the Parliament approved the Commission for Air Quality Management in National Capital Region and Adjoining Areas Bill.

Composition:

Chairperson: To be chaired by a government official of the rank of Secretary or Chief Secretary.
- The chairperson will hold the post for three years or until s/he attains the age of 70 years.
It will have members from several Ministries as well as representatives from the stakeholder States.
It will have experts from the Central Pollution Control Board (CPCB), Indian Space Research Organisation (ISRO) and Civil Society.

Powers and functions:

It will have the powers to issue directions to these state governments on issues pertaining to air pollution.
It will entertain complaints as it deems necessary for the purpose of protecting and improving the quality of the air in the NCR and adjoining areas.
It will also lay down parameters for control of air pollution.
It will also be in charge of identifying violators, monitoring factories and industries and any other polluting unit in the region, and will have the powers to shut down such units.
It will also have the powers to overrule directives issued by the state governments in the region, that may be in violation of pollution norms.

6. Cholera resurgence? Several countries record case surge, deaths since October

Subject : Science and Technology

Context-

Several countries across the world have reported a surge in cholera cases this year, raising concerns about a global resurgence of the disease. These include Kenya, Malawi, Haiti, Lebanon and the Philippines.

More in details-

This is amid a shortage of cholera vaccines.
Experts believe that global warming may have heightened the chances of the disease spreading and strained healthcare facilities due to COVID-19 also may have reduced access to treatment and prevention.

Cholera-

It is a life-threatening infectious disease and a public health hazard.
Cholera is an acute, diarrheal illness caused by infection of the intestine with the bacterium Vibrio cholerae.
The infection is often mild or without symptoms, but sometimes can be severe.

Symptoms:

Profuse watery diarrhoea
Vomiting
Leg cramps

Transmission:

A person may get cholera by drinking water or eating food contaminated with the cholera bacterium.
The disease can spread rapidly in areas with inadequate treatment of sewage and drinking water.

Vaccine:

Currently there are three WHO pre-qualified oral cholera vaccines (OCV), Dukoral, Shanchol, and Euvichol-Plus.
All three vaccines require two doses for full protection.

7. Apply precautionary principle to biotechnologies, scientists & policymakers urge at COP15 Montreal

Subject : Environment

Context-

A white paper detailing the potential dangers of genetically engineered trees and biotechnologies was released at the 15th Conference of Parties (COP15) to the United Nations Convention on Biological Diversity (CBD) in Montreal, Canada.

Paper title- Biotechnology for Forest Health?

The paper detailed the harm genetically engineered trees can bring on if allowed to grow in the wild as a solution to conserve biodiversity.
Forest certification regimes Forest Stewardship Council and Sustainable Forestry Initiative have also banned the use of genetically engineered (GE) trees.

CoP15 to Convention on Biological Diversity (CBD)-

Originally had to take place in Kunming, China, in October 2020, but delayed due to covid-19 pandemic.
Currently taking place in Montreal, Canada.
Theme- Building a shared future for all life on Earth
Goal-
- Negotiating this decade’s biodiversity targets and a new global framework for biodiversity protection.
- The focus is expected to be on 30×30, a push to protect 30% of land and sea for nature by the end of this decade.
- Emphasising the Human right to a healthy environment.
- Push to require mandatory nature disclosures from all large businesses and financial institutions as a measure of their impacts and dependencies on biodiversity.

Genetically Enegineered American chestnut (GE AC)

The tree species was once dominant in eastern North American forests and was decimated in the first half of the 20th century by a fungal blight (Cryphonectria parasitica, also referred to as chestnut blight) and logging.
The researchers are trying to get the government’s approval to release GE AC into the wild.
If they are successful, it will be the first GE forest tree species planted specifically to spread freely through forests.
The GE AC tree has been engineered with an oxalate oxidase enzyme, or OxO, derived from wheat, along with other marker and promoter genes.
The OxO trait does not eliminate the pathogen but inhibits it from spreading on the tree, making it less lethal.

Repercussions-

Direct and indirect financial links between organisations promoting GE trees and the non-profit The American Chestnut Foundation.
It can be used to sway public opinion towards the use of biotechnology for forest conservation and to pave the way for the introduction of other GE trees.
Threat to pollinators population.
Efforts to genetically engineer pathogen resistance, even in common agricultural crops, have been unsuccessful. Pathogens evolve to overcome plant defences and increasing resistance to one pathogen may lead to higher susceptibility to others.
Problem of invasive species may increase.

Precautionary principles tobe followed for handling of GE Species-

Adequate handling of the precautionary principle outlined in the biosafety protocol could contribute to a well-balanced mechanism for the Genetically engineered species and its transboundary movements.
Measures should be:

proportional to the chosen level of protection,
nondiscriminatory in their application,
consistent with similar measures already taken,
based on an examination of the potential benefits and costs of action or lack of action,
subject to review, in the light of new scientific data, and
capable of assigning responsibility for producing the scientific evidence necessary for a more comprehensive risk assessment.

8. Technical Barriers to Trade (TBT) Agreement

Subject :Economy

Context:

In the past few years, the tariff reductions have led to the rise in technical barriers to trade (TBTs) and preference trading agreements.

Preferential trade agreements:

In this type of agreement, two or more partners give preferential right of entry to certain products by reducing duties on an agreed number of tariff lines.
Besides conferring tariff advantages,countries also establish trading preferences through labour, environmental and technical standards.
Many such standards could translate into new Technical Barriers to Trade or non-tariff measures.
Example-Indo-Pacific Economic Framework for Prosperity
- It was initiated by the US in May 2022, with 13 other countries, including Japan and India.
  - Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States, and Vietnam.
  - In September 2022, India opted out of signing the declaration on IPEF’s trade pillar.
- The IPEF is not a Free Trade Agreement (FTA) but allows members to negotiate the parts they want to. The negotiations will be along four main “pillars”.
  - Supply-chain resilience.
  - Clean energy, decarbonisation & infrastructure
  - Taxation & anti-corruption
  - Fair & resilient trade.
- The trade pillar seeks to connect free and fair trade with technology policy, inclusive growth, and the interests of workers as well as consumers.

The Technical Barriers to Trade (TBT) Agreement

It aims to ensure that technical regulations, standards, and conformity assessment procedures are non-discriminatory and do not create unnecessary obstacles to trade.
It recognises WTO members’ right to implement measures to achieve legitimate policy objectives, such as the protection of human health and safety, or protection of the environment.
The TBT Agreement strongly encourages members to base their measures on international standards as a means to facilitate trade.
TBT (Technical Barriers to Trade) Agreement covers all technical regulations, voluntary standards and the procedures to ensure that these are met, except when these are sanitary or phytosanitary measures as defined by the SPS Agreement.
- SPS Agreement the only justification for not using such standards for food safety and animal/plant health protection are scientific arguments resulting from an assessment of the potential health risks.
  - Regulations which address microbiological contamination of food, or set allowable levels of pesticide or veterinary drug residues, or identify permitted food additives, fall under the SPS Agreement.
  - Some packaging and labelling requirements, if directly related to the safety of the food, are also subject to the SPS Agreement.
- In contrast, under the TBT Agreement governments may decide that international standards are not appropriate for other reasons, including fundamental technological problems or geographical factors. TBT measures could cover any subject, from car safety to energy-saving devices, to the shape of food cartons.
- TBT measures could include pharmaceutical restrictions, or the labelling of cigarettes.
- Most measures related to human disease control are under the TBT Agreement, except for the diseases which are carried by plants or animals .
- In terms of food, labelling requirements, nutrition claims and concerns, quality and packaging regulations are generally not considered to be sanitary or phytosanitary measures and hence are normally subject to the TBT Agreement.

SPS vs TBT

The sanitary and phytosanitary measures may be imposed only to the extent necessary to protect human, animal or plant health, on the basis of scientific information. Governments may, however, introduce TBT regulations when necessary to meet a number of objectives, such as national security or the prevention of deceptive practices.

9. Old Pension Scheme vs National Pension Scheme

Subject :Economy

Context:

There is no provision under Pension Fund Regulatory and Development Authority Act, 2013 and other relevant Regulations to return deposits under the National Pension System (NPS) back to the respective State governments.

Old Pension Scheme vs National Pension Scheme:

OPS – discontinued on April 1, 2004 – pension constituted 50 per cent of the last drawn salary of an employee.
This entire amount was paid by the government.
It was replaced by the national pension scheme (NPS) or contributory pension scheme for employees who joined on or after April 1, 2004.
It is regulated under the PFRDA (The Pension Fund Regulatory & Development Authority) Act, 2013.
NPS is being implemented and regulated by PFRDA in the country.
National Pension System Trust (NPST) established by PFRDA is the registered owner of all assets under NPS.
Under it every government employee is allotted a Permanent Retirement Account Number, and has to mandatorily contribute 10% of pay and dearness allowance to the pension fund, which is matched by the government.
- After the latest amendment, in 2019, the government share of the contribution has been raised to 14% from 10%.
- This money can then be invested by fund managers.
On retirement, the employee can withdraw 60% of the corpus but is required to invest at least 40% to purchase an annuity from an insurance firm regulated and registered by government authorities. The interest on the annuity is to be provided as a monthly pension to the employee.
The Centre left it to states to adopt the new system, and the States have the power to roll it back.
NPS is structured into two tiers:
- Tier-I account: This is the non-withdrawable permanent retirement account into which the accumulations are deposited and invested as per the option of the subscriber.
- Tier-II account: This is a voluntary withdrawable account which is allowed only when there is an active Tier I account in the name of the subscriber.

Beneficiaries:

NPS was made available to all Citizens of India from May 2009.
Any individual citizen of India (both resident and Non-resident) in the age group of 18-65 years can join NPS.
However, OCI (Overseas Citizens of India) and PIO (Person of Indian Origin) card holders and Hindu Undivided Family (HUFs) are not eligible for opening of NPS accounts.

The differences:

The basic difference is that the NPS is a contribution-based pension system unlike the OPS where the entire amount was paid by the government.
In case of OPS benefit due was defined before– 50 per cent of the last drawn salary of an employee while the NPS, the pension benefit is determined by factors such as the amount of contribution made, the age of joining, type of investment, and the income drawn from that investment.
- The minimum payment to retired employees as pension is ₹3,500 in the NPS.
NPS provides a pension fund on retirement which is 60 per cent tax-free on redemption while the rest needs to be invested in annuity which is fully taxable while the Income from OPS is not taxed.

10. Online gaming tax

Subject :Economy

Context:

Enforcement Directorate (ED) has attached proceeds of crime of more than ₹1,000 crore in several cases related to cyber and crypto assets frauds wherein online gaming etc have been used for siphoning the proceeds.

Details:

Proceeds of crime have been attached/seized/freezed under the Prevention of Money Laundering Act, 2002 and Section 37A of the Foreign Exchange Management Act, 1999.
The disclosure of information about specific taxpayers is prohibited except as provided under section 138 of the Income Tax Act, 1961.

Concept:

What is a game of skill versus one of chance?

Games of skill –where “success depends principally upon the superior knowledge, training, attention, experience and adroitness of the player”.
- For instance, the ability to strategize the selection of athletes in a virtual football team, to earn points (and eventually money) from picking the best possible team.
Games of chance-where winning would depend solely on luck. Example-gambling
Staking money or property on the outcome of a ‘game of chance’ is prohibited and subjects the guilty parties to criminal sanctions. However, placing any stakes on the outcome of a ‘game of skill’ is not illegal per se and may be permissible.
The state legislators are given exclusive power to make laws relating to betting and gambling. Gambling is a non-cognisable and bailable offence in India.

Online gaming?

Online gaming so far has been a state subject.
Real money games (RMGs) refers to any game that accepts payments in real money from users to payments in real money from users to play.
Both Daily Fantasy Sport and rummy qualify as RMG and games of skill are legal while other RMGs fall in an undefined space.

Taxing online gaming?

Any gambling venture is taxed at 28% of the gross value charged from participants, while skill-based gaming ventures are taxed at 18% of their revenue.
Income of professional streamers –Professional streamers are players who stream their games online through YouTube and earn from the streaming platform based on the number of views.
- It is taxable under the head ‘business & profession’ on income after considering business expenses (on net income).
- This income is taxable at applicable slab rates and no tax is payable if income is below ₹2.5 lakh.
Income from winnings of real money from online games
- It is taxable under “Income from other sources”.
- Unlike income of professional streamers, no deductions are allowed, and tax is chargeable on the gross winning amount credited to the player’s account.
- It is taxable at a flat rate of 31.2% irrespective of the quantum of winnings even if the total income is below ₹2.5 lakh.
Joining bonuses and referral bonuses:
- A joining bonus to players on login and referral bonuses for referring friends is taxable on a net basis at applicable slab rates.
- For professionals under the “Income from business and profession” and for others, it will be taxable as “Income from other sources”.
Distribution during gaming tournaments:
- Merchandise received by a professional is taxable under “Income from business & profession” irrespective of the market value of the merchandise.
- For others, income is taxable only if the total market value of the merchandise exceeds ₹50,000.
Income of minors:
- Income of a minor child is clubbed with the income of the parent except when the income is on account of application of any skill, talent or specialized knowledge and experience.
- Given that online gaming has been held to be a game of skill by various courts, income of minors from online gaming will be taxable in their own hands depending on the nature of the income.

11. Forex

Subject :Economy

Context:

Country’s forex reserves are piling up due inflows through both FDI and FPI route.

Details:

Due to the aggressive monetary policy tightening in the US– the US dollar strengthened and the INR depreciated leading to a sharp fall in India’s forex .
India’s foreign exchange reserves rose $11.02 billion to cover around nine months of projected imports for 2022-23.

Concept:

Foreign exchange reserves (also called forex reserves or FX reserves) are cash and other reserve assets such as gold held by a central bank or other monetary authority that are primarily available to balance payments of the country, influence the foreign exchange rate of its currency, and to maintain confidence in financial markets.
Components of India’s forex:
- Foreign Currency Assets
  - FCAs are assets that are valued based on a currency other than the country’s own currency.
  - FCA is the largest component of the forex reserve. It is expressed in dollar terms.
  - The FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
- Gold reserves
- Special Drawing Rights
  - The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves.
  - The SDR is neither a currency nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. SDRs can be exchanged for these currencies.
  - The value of the SDR is calculated from a weighted basket of major currencies, including the US dollar, the euro, Japanese yen, Chinese yuan, and British pound.
- Reserve position with the International Monetary Fund (IMF).
  - A reserve tranche position implies a portion of the required quota of currency each member country must provide to the IMF that can be utilized for its own purposes.
  - The reserve tranche is basically an emergency account that IMF members can access at any time without agreeing to conditions or paying a service fee.

Depreciation Phenomenon of Rupee vs. Dollar

When the value of Indian Rupee (INR) against another currency says US Dollar (USD) decreases in the foreign exchange (forex) market, it is called as depreciation of Rupee (appreciation of dollar) and on the contrary if the value of INR increases against USD, it is called as appreciation of Rupee (depreciation of dollar).
When the demand of foreign exchange USD exceeds the supply, it will result in the increase in the price of USD in terms of rupee. In other words, the value of rupee will decrease against USD and it is called depreciation of Rupee.
For example, in a forex market, if USD 1 can be purchased with INR 67 but after some time later its price is increased to INR 68, then Rupee is said to be depreciated by one Rupee. Again, after some time if the USD price decreases to INR 67, then Rupee is appreciated by one Rupee.

12. Government Securities

Subject :Economy

Context:

Insurance companies’ holding of G-Secs rose at a faster clip than the growth for commercial banks.

Details:

To meet the robust demand for credit, public sector banks are selling excess statutory liquidity ratio (SLR) securities, including G-Secs, in their investment portfolio whenever the yield comes down.
Excess holdings of SLR securities of scheduled commercial banks were at 8.8 per cent of their deposits as at September-end 2022, according to RBI’s monetary policy report.

G-sec:

A Government Security (G-Sec) is a tradeable instrument issued by the Central Government or the State Governments.
Types:
- Short term (usually called treasury bills, with original maturities of less than one year) or
- Long term (usually called Government bonds or dated securities with original maturity of one year or more).
In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs).
G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments.

How G sec issued?

Competitive bidding- G-Secs are issued through auctions conducted by RBI on the electronic platform called the E-Kuber.
- Commercial banks, scheduled UCBs, Primary Dealers, insurance companies and provident funds are members of this electronic platform.
- All members of E-Kuber can place their bids in the auction through this electronic platform.
- All non-E-Kuber members including non-scheduled UCBs can participate in the primary auction through scheduled commercial banks or PDs (called as Primary Members-PMs).
Non-Competitive Bidding (NCB):
- Retail investors are allowed participation on a “non-competitive” basis in select auctions of dated Government of India (GoI) securities and Treasury Bills.
  - Retail investor-is any person, including individuals, firms, companies, corporate bodies, institutions, provident funds, trusts, and any other entity as may be prescribed by RBI.
- Regional Rural Banks (RRBs) and Cooperative Banks shall be covered under this Scheme only in the auctions of dated securities.
- State Governments, eligible provident funds in India, the Nepal Rastra Bank, Royal Monetary Authority of Bhutan and any Person or Institution, specified by the Bank, with the approval of Government, shall be covered under this scheme only in the auctions of Treasury Bills without any restriction on the maximum amount of bid for these entities and their bids will be outside the notified amount.
The government securities can be sold in the secondary market either through an anonymous online trading mechanism on an exchange or through the over-the-counter sale.

Who Decides the Price of G-secs?

The price of G-secs is decided by the Reserve Bank of India.
- The bidders or bidding companies are allotted securities at an average price of auction decided by the RBI every week.
- Most government securities are not tax-free.
  - If the government securities are sold within one year of purchase, a short term tax liability arises – making them taxable as per your current slab rate.
  - If the government securities are held for a longer period, the gains are taxed at 10% as long term capital gains.

13. Emergency Credit Line Guarantee Scheme

Subject :Economy

Context:

Emergency Credit Line Guarantee Scheme (ECLGS), has benefitted around 1.19 crore businesses.

Concept:

Emergency Credit Line Guarantee Scheme (ECLGS)

It was announced as part of the AtmaNirbhar Bharat Package in 2020.
It aims to help businesses including MSMEs to meet their operational liabilities and resume businesses in view of the distress caused by the COVID-19 crisis.
Objective: To provide fully guaranteed and collateral free additional credit to MSMEs, business enterprises, MUDRA borrowers and individual loans for business purposes to the extent of 20% of their credit outstanding as on 29th February, 2020.
100% guarantee coverage is to be provided by National Credit Guarantee Trustee Company Limited (NCGTC) to the Member Lending Institutions (MLI), Banks, Financial Institutions, and Non-Banking Financial Companies (NBFC) against any losses suffered by them due to non-repayment of the ECLGS funding by borrowers.
No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme.
Interest rates under the Scheme shall be capped at 9.25% for banks and FIs, and at 14% for NBFCs.
ECLGS is under the operational domain of the Ministry of Finance, Department of Financial Services (DFS).
The scheme was launched with an initial admissible limit of the guarantee cover at ₹3 lakh crore which was later enhanced to ₹4.5 lakh crore and further to ₹5 lakh crore in the 2022-23 budget announcement.
The eligibility criteria for availing credit under ECLGS are:
- For ECLGS 1.0; MSME units, Business Enterprises, Mudra Borrower and individual loans for business purpose having loan outstanding upto Rs.50 crore and days past due upto 60 days as on 29.02.2020.
- For ECLGS 2.0; Borrower belonging to 26 stressed sectors identified by Kamath Committee & Healthcare sector having loan outstanding above Rs.50 crore and upto Rs.500 crore and days past due upto 60 days as on 29.02.2020.
- For ECLGS 3.0; Borrower belonging to Hospitality, Travel & Tourism, Leisure & Sporting and Civil Aviation sector having days past due upto 60 days as on 29.02.2020.
- For ECLGS 4.0; Existing Hospitals/Nursing Homes/Clinics/Medical Colleges/units engaged in manufacturing of liquid oxygen, oxygen cylinders etc. having credit facility with a lending institution with days past due upto 90 days as on March 31, 2021.

National Credit Guarantee Trustee Company Limited

NCGTC or the National Credit Guarantee Trustee Company Limited is registered under the Companies Act, 1956 in 2014 as a private limited company.
It is a wholly-owned company of the Government of India
It was established by the Department of Financial Services, Ministry of Finance to act as a common trustee company for multiple credit guarantee funds.
The main role of the Organisation is to design credit guarantee programs, to share the risk of lending among the lenders, and facilitate financial access to a prospective borrower.

14. Conservationists seek ban on three vulture-toxic veterinary drugs

Subject :Environment

Sixteen years after India banned veterinary use of diclofenac, found to be toxic for vultures, scientists and conservationists are calling for a ban on veterinary painkiller aceclofenac.
Recently, it was found that aceclofenac was rapidly converted to diclofenac in the cattles.
Diclofenac was present in the plasma within 20 minutes of the treatment of aceclofenac.
The concentration reached its peak between four and eight hours.
Consevationists said tha allowing the use of aceclofenac was a very unfortunate loophole in India’s vulture conservation.

Background

Aceclofenac is a pro-drug of diclofenac and behaves similarly in domestic water buffalo as it does in domestic cattle, posing the same risk to vultures.
It is one among the three non-steroidal anti-inflammatory drugs (NSAIDS) drugs—aeclofenac, ketoprofen and nimesulide—were introduced as alternatives to diclofenac, that India banned in 2006 for animal use because it caused widespread vulture deaths.
However, India’s vulture conservation action plan for 2020-25 recommends a ban on the veterinary use of the three drugs.

Diclofenac

Diclofenac, a drug used to treat cattle, was linked to kidney failure in vultures and a decline in the bird’s population.
Though the drug was banned in 2006, it is reportedly still available for use.
Diclofenac, that is potentially toxic to vultures being used by vets for treating cattle. The drugs make their way into the vulture’s system as they feed on carcasses.
Three of India’s vulture species of the genus ‘Gyps’— the long-billed (Gyps indicus) and the slender-billed (G. tenuirostris) had declined by 97%, while in the white-rumped (G. bengalensis) declined nearly 99% between 1992 and 2007.

Action Plan for Vulture Conservation 2020-2025

It proposes to establish Vulture Conservation Breeding Centers in Uttar Pradesh, Tripura, Maharashtra, Karnataka and Tamil Nadu.
There would also be a conservation breeding programme for the Red Headed vulture and Egyptian vulture, and at least one “Vulture Safe Zone” in every State for the conservation of the remnant populations.
There would be four rescue centers in different geographical areas:
Pinjore in north India,
Bhopal in central India,
Guwahati in northeast India and
Hyderabad in south India,
There will also be regular surveys to track population numbers, the plan envisages.
Also, the vulture action plan recommends meloxicam over diclofenac and Tolfenamic acid is the other safe option.

SAVE (Saving Asia’s Vultures from Extinction)

The consortium of like-minded, regional and international organizations, created to oversee and coordinate conservation, campaigning and fundraising activities to help the plight of south Asia’s vultures.
Objective: To save three critically important species from extinction through a single programme.
SAVE partners: Bombay Natural History Society, Bird Conservation Nepal, RSPB (UK), National Trust for Nature Conservation (Nepal), International Centre for Birds of Prey (UK) and Zoological Society of London.

About Vultures

Vultures are one of the 22 species of large carrion-eating birds that live predominantly in the tropics and subtropics.
India is home to nine species of vultures and these are :

15. Scheme for Providing Education to Madrasas/ Minorities (SPEMM)

Subject :Government schemes

The Parliamentary Standing Committee on Social Justice and Empowerment recently pulled up the Union government for the delay in approving the continuation of the Scheme for Providing Education to Madrasas/Minorities (SPEMM), which provides for financial assistance to madrasas and minority institutes..

About Scheme for Providing Education to Madrasas/ Minorities (SPEMM):

The scheme has two sub-schemes –
the Scheme for Providing Quality Education in Madrasas (SPQEM) and
Infrastructure Development of Minority Institutes (IDMI).
The scheme is being implemented at the national level.
Both the schemes are voluntary in nature.

Implementation:

Department of School Education and Literacy is implementing the Umbrella Scheme for Providing Quality Education to Madrasas/Minorities (SPEMM).
The scheme was transferred from the Ministry of Minority Affairs to the Ministry of Education in 2021.

Scheme for Providing Quality Education in Madrasas (SPQEM):

To provide financial assistance to traditional institutions like Madrasas and Maktabs to encourage them to introduce Science, Mathematics, Social Studies, Hindi and English in their curriculum so that academic proficiency for classes I-XII is attainable for children studying in these institutions.
To strengthen State Madrasa Boards opting for assistance by enabling them to monitor the Madrasa modernization programme and enhance awareness about education among the Muslim community.
To provide quality components in Madrasas such as remedial teaching, assessment and enhancement of learning outcomes, Rashtriya Avishkar Abhiyan etc.
To provide in-service training of teachers appointed under the scheme for teaching modern subjects of Science, Mathematics, Social Studies, Hindi and English to improve their pedagogical skills and quality of teaching.

Infrastructure Development of Minority Institutes (IDMI):

Infrastructure Development of Minority Institutes (IDMI) has been operationalised to augment Infrastructure in Private Aided/Unaided Minority Schools/Institutions in order to enhance the quality of education to minority children.
The salient features of IDMI scheme are:
To facilitate education of minorities by augmenting and strengthening school infrastructure in Minority Institutions (elementary/ secondary/senior secondary schools) in order to expand the facilities for formal education to children of minority communities.
To encourage educational facilities for girls, children with special needs and those who are most deprived educationally amongst the minorities.

16. 36428 villages to be developed as ‘model tribal villages’

Subject :Government Schemes

The Union Ministry of Tribal Affairs is now working to develop 36,428 villages with at least 50% tribal population and 500 STs across the country into ‘model tribal’ villages, Minister of State (MoS) for Tribal Affairs Renuka Singh told Lok Sabha on Monday.
She added that these efforts were part of the existing Special Central Assistance to Tribal Sub-Scheme (SCA to TSS), which has now been renamed to the Pradhan Mantri Adi Adarsh Gram Yojna (PMAAGY), for implementation from 2021-22 to 2025-26.

About Pradhan Mantri Adi Adarsh Gram Yojana:

This scheme aims to transform villages with significant tribal population into model village (Adarsh Gram)covering about population of 4.22 crore (About 40% of the total Tribal Population).
It supplements the efforts of State Governments for development and welfare of tribal people by extending Special Central Assistance as an additive to the State Tribal Sub-Plan (TSP).
Objective
To achieve integrated socio-economic development of selected villages through convergence approach.
Improving the infrastructure in vital sectors like health, education, connectivity and livelihood.
It includes maximizing the coverage of individual / family benefit schemes of the Central / State Governments.
The scheme envisions to mitigate gaps prominently in 8 sectors of development viz. Road connectivity , Telecom connectivity , School, Anganwadi Centres, Health Sub-Centre, Drinking water facility.

Revised Guidelines of the scheme

The Scheme was revised to capture the Gaps in critical socio-economic ‘Monitorable Indicators’ as part of various sectors/domains namely; water and sanitation, education, health and nutrition, agricultural best practices etc

New Approach for implementation

The identification of needs or Gaps with regard to the ‘Monitorable Indicators’ are based on a Need Assessment exercise.
The ‘Village Development Plan’ (VDP) is based on the data collected as part of the Need Assessment exercise.
PMAGY provids the platform for convergent implementation of other Schemes with the aim to achieve saturation in the various domains.

17. India-China clash: What has happened in Tawang, Arunachal Pradesh

Subject: Mapping

The Defence Minister told Lok Sabha that on December 9, PLA troops carried out an incursion (“atikraman”) across the LAC in Yangtse area of Tawang sector in Arunachal Pradesh, and attempted to unilaterally change the status quo.

About Tawang

Tawang is a town in the Indian state of Arunachal Pradesh.
The town was once the capital of the Tawang Tract, which is now divided into the Tawang district and the West Kameng district.Tawang continues as the headquarters of the former.
Tawang is situated 448 km north-west of state capital Itanagar at an elevation of approximately 3,048 metres (10,000 ft).
It lies to the north of the Tawang Chu river valley, roughly 10 miles (16 km) south of the Line of Actual Control with China.
It is the site of a famous Gelugpa Buddhist monastery(Tawang Monastery).

About Tawang Monastery

It is the largest monastery in India and second largest in the world after the Potala Palace in Lhasa, Tibet.
Tawang Monastery is known in Tibetan as Gaden Namgyal Lhatse, which translates to “celestial paradise in a clear night.”
It was in 1680-1681 in accordance with the wishes of the 5th Dalai Lama, Ngawang Lobsang Gyatso (1617–1682).
It belongs to the Gelug school of Mahayana Buddhism.

Architecture and other features:

The monastery is triple storied with a large assembly hall, ten other functional structures and with 65 residential quarters for students, Lamas and monks.
The main temple in the monastery is known as the Dukhang.

18. External Affairs Minister Jaishankar to attend UNSC meetings

Subject: International relations

External Affairs Minister S. Jaishankar will visit New York to participate in two high-level Ministerial meetings at the UN Security Council that will take up reform in the UN Security Council and the global counter-terror campaign on December 14 and 15.

About the news

India will hold a “high-level open debate” on “Maintenance of International Peace and Security: New Orientation for Reformed Multilateralism” at the Security Council.
New Orientation for Reformed Multilateralism (NORMS) envisages reforms in the current multilateral architecture, with the UN at its centre, to make it more representative and fit for purpose.
The other signature event planned is the high-level briefing on the theme “Threats to International Peace and Security Caused by Terrorist Acts: Global Approach to Counter Terrorism — Challenges and Way Forward”, scheduled for December 15.
Recently, India assumed the monthly rotating presidency of the UN Security Council (UNSC) on December 1, the second time in its two-year tenure as an elected member of the Council in 2021-22.
India had earlier assumed UNSC presidency in August 2021.
Both these themes have been key priorities for India during its current tenure at the UN Security Council,” the Ministry of External Affairs said in a press note.

About UNSC

UNSC is considered the nucleus of the UN system.
It is the only body of UN which has teeth to bite. It has a major say in all critical appointment in UN
Chapter VI of the UN charter gives a mandate to UNSC to settle disputes peacefully through mediation and secure a ceasefire through peacekeeping force.
Chapter VII of UN charter give power to UNSC to impose military and economic sanctions

Process of reform

The UNSC reform requires an amendment to the Charter of the United Nations.
In the first stage, the UN General Assembly must approve the reform by a two-thirds majority.
After approval from the UNGeneral Assembly, the amended Charter must then be ratified by at least two-thirds of the member states, including the five permanent Security Council members.
According to Article 108of the Charter all the permanent members of the Security Council must ratify the amendment otherwise it will not be accepted.

19. SC seeks govt. response to pleas challenging extension of ED director

Subject: Polity

The Supreme Court on Monday sought the government’s response to petitions challenging the third extension in tenure given to Directorate of Enforcement (ED) Director Sanjay Kumar Mishra.
A Bench led by Justice B.R. Gavai issued notice to the Union of India and the Central Vigilance Commission.
A batch of pleas have been filed on the issue, mostly challenging the Central Vigilance Commission (Amendment) Act, 2021 which provides for extension of the term of ED’s director up to five years.

Amendments in CVC Act:

In November 2021, the President of India promulgated two ordinances allowing the Centre to extend the tenures of the directors of the Central Bureau of Investigation (CBI) and the Enforcement Directorate from two years to up to five years.
Provided that the period for which the Director of Enforcement holds the office on his initial appointment may, in public interest, on the recommendation of the Committee (comprising of CVC chief, Revenue and Home Secretaries among others) and for the reasons to be recorded in writing, be extended up to one year at a time.
Provided further that no such extension shall be granted after the completion of a period of five years in total including the period mentioned in the initial appointment.

Enforcement Directorate

Directorate of Enforcement is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance.
On 1st May 1956, an ‘Enforcement Unit’ was formed, in the Department of Economic Affairs, for handling Exchange Control Laws violations under Foreign Exchange Regulation Act, 1947.
In the year 1957, this Unit was renamed as ‘Enforcement Directorate’.
Appointment of ED Director is governed by the Delhi Special Police Establishment (DSPE) Act, 1946.
ED enforces the following laws:
Foreign Exchange Management Act,1999 (FEMA)
Prevention of Money Laundering Act, 2002 (PMLA)

Structure of ED

The Directorate of Enforcement, with its headquarters at New Delhi, is headed by the Director of Enforcement.
There are five regional offices at Mumbai, Chennai, Chandigarh, Kolkata and Delhi headed by Special Directors of Enforcement.
The Directorate has 10 Zonal offices each of which is headed by a Deputy Director and 11 sub Zonal Offices each of which is headed by an Assistant Director.

Appointment of ED director

The ED director is appointed as per provisions of the Central Vigilance Commission Act, 2003
The Centre appoints the director on recommendation of a committee, with the Central Vigilance Commissioner as chairperson
Other committee members are secretaries in the Finance (Revenue), Home and Personnel & Training ministries
The tenure should be “not less than two years,” and any transfer has to be sanctioned by the appointing committ

20. Yoga to cure cancer

Subject :Science and Technology

Concept:

As per a study by the Tata Memorial Hospital, inclusion of Yoga in the treatment of breast cancer patients is highly beneficial.
The inclusion of Yoga resulted in a 15% relative improvement in disease free survival (DFS) and 14% in overall survival (OS).
The largest clinical trial is an important milestone in use of YOGA in breast cancer since this is the first example of a very Indian traditional remedy being tested in a rigorous western design of randomized study with robust sample size.
Breast cancer is the commonest cancer affecting women not only in India but globally. It raises huge amount of anxiety in women which is twofold, the first fear of cancer with threat to life and the second worry due to side effects of treatment and coping with it.
It is heartening to see that YOGA practiced with rigour and perseverance has proved its superiority in maintaining excellent quality of life and has also numerically reduced the risk of recurrence and death by 15%.

Yoga

The Father of Yoga, Maharishi Patanjali combined multiple aspects of yoga and called them “Yoga Sutras” or aphorisms. He advocated “Ashtanga Yoga”; the eight-fold path of yoga that facilitates the all-round development of human beings. These components are Yama, Niyama, Pratyahara, Dharana, Asana, Pranayama, Dhyana and Samadhi. These components bring about physical discipline, help in the regulation of breath, restraining the sense organs, and promote contemplation and meditation. These techniques play an important role in the prevention of diseases such as psychosomatic disorders and promote overall health. It has benefited people at large and continues to blossom with each passing day.

Yoga has been derived from the Sanskrit term ‘Yuj’ that means ‘to yoke’ or simply, ‘to unite’. According to the Oxford Dictionary, the word Yoga means ‘union’. Therefore, it is a union of the individual spirit with the universal spirit of God. Yoga is a combination of practices, which define the way we engage with the world to create harmony. Yoga, as a discipline means:

To engage
To participate
To get involved
To connect

Types of Yoga

Japa Yoga
Karma Yoga
Gyana Yoga
Bhakti Yoga
Raja Yoga
Swara Yoga
Kundalini
Nadi

21. New India Literacy Programme

Subject :Government Schemes

Government has announced a Centrally Sponsored Scheme namely, “New India Literacy Programme” (NILP) for implementation during five years from 2022-23 to 2026-27.
The programme aims to cover a target of 5.00 crore learners during the five years under Foundational Literacy and Numeracy component.
The programme has five objectives: (i) Foundational Literacy and Numeracy, (ii) Critical Life Skills, (iii) Vocational Skills Development, (iv) Basic Education and (v) Continuing Education.
while implementing the NILP should be opening and mapping of all Bank Accounts of Single Nodal Agencies (SNAs) and Implementing Agencies (IAs) in all States with Public Financial Management System (PFMS). This is a pre-requisite for release of funds as per revised procedure guidelines of Ministry of Finance.
The total financial outlay of NILP for five years (FYs 2022-23 to 2026-27) is Rs.1037.90 crore, out of which Rs.700 crore is Central share and Rs.337.90 crore is State share.
The Central and State shares are in the ratio of 60:40 for all States other than North Eastern Region (NER) and Himalayan States where the sharing pattern between the Centre and the State is in the ratio of 90:10.
For UTs with legislature the ratio is 60:40, except in the UT of Jammu & Kashmir where the ratio is 90:10, and for all other UTs without legislature the Central share is 100%. The fund flow is through PFMS and State treasuries.

22. India Internet Government Forum

Subject: International relations

Concept:

The India Internet Government Forum is an initiative associated with the UN Internet Governance Forum (UN-IGF).
The Internet Governance Forum (IGF) is a multi-stakeholder platform bringing representatives together from various groups, all at par to discuss public policy issues related to the Internet.
India IGF (IIGF) will provide the ability to facilitate discussions between intergovernmental organisations, private companies, technical community, academic community and civil society organisations who are involved in Internet governance-related public policy issues.
This policy dialogue is carried out on a co-equal basis through open and inclusive processes. This mode of engagement is referred to as the multistakeholder model of Internet Governance, which has been one of the key reasons for the Internet’s success.