Daily Prelims Notes 13 July 2024

Daily Prelims Notes

13 July 2024

Table Of Contents

1. Squalus hima
2. India’s first green steel initiative
3. NASA’s CHAPEA project: Why 4 people spent a year in an airlocked space simulating Mars
4. Content determined by volunteer editors, says Wikipedia parent
5. Government to observe June 25 as ‘Samvidhaan Hatya Diwas’ to mark Emergency
6. Deregulating Non-Subsidised Fertilisers
7. RBI Allows Foreign Currency Accounts in GIFT City
8. NABARD Launches ₹750-Crore Agri Fund to Boost Innovation

1. Squalus hima

Sub: Environment

Sec: Species in news

Why in news?

Scientists from Zoological Survey of India (ZSI) recently discovered a new species of deep-water dogfish shark named Squalus hima from Sakthikulangara fishing harbour in Kerala along the Arabian Sea.

About Squalus hima:

• Squalus is a genus of dogfish sharks in the family Squalidae, commonly known as spurdogs. They are characterised by smooth dorsal fin spines.
• Physical Features: angular short snout, a small mouth almost as wide as the snout, a first dorsal fin origin behind the pectoral fins, and a body without any spots.
• Shark species belonging to the genus Squalusand Centrophorus are exploited for their liver oil, which contains high levels of squalene (or squalane when processed for products).
• Squalene is in high demand in the pharmaceutical industry, particularly for making high-end cosmetics and anti-cancerous products.
• On the Indian coast, two species of Squalus are found from the southwest coast of India.

About Zoological Survey of India (ZSI)

• Established in 1916, it is India’s apex organization on animal taxonomy.
• Headquartered in Kolkata, with 16 regional offices.
• It has been declared as a designated repository for the National Zoological Collection as per Section 39 of the National Biodiversity Act, 2002.
• ZSI publishes the Red Data Book on Indian Animals.

2. India’s first green steel initiative

Sub: Environment

Sec: Climate change

Why in news?

A consortium headed by the Institute of Minerals and Materials Technology (IMMT) has expressed interest to pilot India’s first green steel-making initiative using 100 per cent hydrogen-based DRI production method. The project will be partly supported by the steel ministry.

What is Green Steel?

Green steel is the eco-friendly production of steel with substantially lower carbon emissions.

The pilots will use hydrogen as an alternative to conventional coking coal.

Three steel-making methods:

1. 100 per cent hydrogen-based DRI production
2. Injecting hydrogen into an existing blast furnace
3. Blending of hydrogen with natural gas in an existing DRI plant so as to gradually bring down fossil fuel usage.

Recently IIT-Roorkee came up with bio-coke as an alternative to coking coal.

What is Direct Reduction of Iron (DRI)

In industrial-scale hydrogen-iron making, also known as direct reduction of iron (DRI) using hydrogen, the oxygen is removed from the iron-ore. But instead of using high carbon emitting fossil fuels, it is done using hydrogen with the waste gas being water. The DRI so produced, also called sponge iron, is then fed into an electric arc furnace where electrodes generate a current to use it to produce steel.

Need for green steel

• Steel production in India remains heavily dependent on coking coal in traditional blast furnaces, which produces huge amounts of carbon
• Electric arc furnaces typically used in the recycling of scrap or final stages of steel production are less carbon-intensive. But can also be highly polluting.
• Steel production is calculated to be responsible for 7-9 per cent of the world’s annual CO₂ emissions, according to the World Steel Association.
• India’s domestic steel sector contributes 12% of the country’s greenhouse gas emissions, with an emission intensity of 55 tonnes of CO₂ per tonne of crude steel, higher than the global average of 1.9 tonnes of CO₂.

Green Steel Initiatives

3. NASA’s CHAPEA project: Why 4 people spent a year in an airlocked space simulating Mars

Subject: Science and tech

Sub: Space sector

Context:

• NASA’s simulation mission saw four volunteers live in a habitat built to replicate conditions on Mars, seen as the most hospitable planet to support life after Earth.
• More About the News:
• A part of NASA’s Crew Health and Performance Exploration Analog (CHAPEA) project, it was the first of three planned simulations to understand the challenges Mars poses for space explorers. 
• A 3D printed airlocked habitat of 1,700 sq feet was created and set up at the Johnson Space Center in Houston, Texas, dubbed “Mars Dune Alpha”. It included four bedrooms, two bathrooms, a work area, a robot station, a gym, common sandy areas with various instruments, and a vertical farm.
• Simulated Martian soil and a backdrop of red, rocky cliffs were provided for an immersive experience. The additional 1,200 sq ft space, adjoining the Mars Dune, Alpha was used for extravehicular activities typically done by astronauts outside their spacecraft.
• The crew entered the simulated space on June 25, 2023, and emerged after 378 days.

 Mission’s Aim:

• NASA aimed to collect data for insight into “the potential impacts of long-duration missions to Mars on crew health and performance” and “understand and counter the physical and mental challenges astronauts will face”.
• The data will also help the agency prepare for long-term presence on the Moon as part of its Artemis programme, seen as another step towards an expedition to Mars.
• “Mars remains our horizon goal for human exploration because it is one of the only other places we know where life may have existed in the solar system.
• The first CHAPEA mission focused on nutrition, and the next two are planned for 2025 and 2026. NASA hopes to send astronauts to Mars by the 2030s.

Participants in the Mars Simulation Mission:

• The four volunteers included Kelly Haston, the team leader and a research scientist; Anca Selariu, a US Navy microbiologist; Ross Brockwell, a structural engineer; and Nathan Jones, an emergency medicine physician.

Habitat like on Mars:

• The temperature on Mars ranges between 20 degrees Celsius and -153 degrees Celsius. The planet has a rocky surface with canyons, volcanoes, dry lake beds, and craters, all covered in red dust.
• Winds can create dust storms. They are visible from Earth using telescopes. It has about one-third the gravity of Earth and the atmosphere is much thinner than Earth’s, containing more than 95% carbon dioxide and less than 1% oxygen.
• The planet turns on its axis more slowly than Earth, and being farther from the Sun, takes longer to revolve around the Sun. A day on Mars is 24.6 hours and a year is 687 Earth days

Challenges involved in a mission to Mars:

• The long duration of a Mars mission because even a one-way trip would take six to nine months
• Mars’s thin atmosphere also makes it difficult to slow down a spacecraft for a safe and precise landing.

India’s plans for a Mars mission:

• ISRO is preparing for astronomy missions and exploratory missions to the Sun, Mars and Venus in the next few years.
• In 2014, India tasted success with its Mars Orbiter Mission (MOM) or Mangalyaan, becoming the first nation to reach Martian orbit in its first attempt.

4. Content determined by volunteer editors, says Wikipedia parent

Subject: Science and Tech

Sec: Awareness in IT

Context: The defamation suit by Asian News International claims ₹2 crore in damages from the Wikimedia Foundation, which runs Wikipedia.

More About News:

• The Wikimedia Foundation has responded to the lawsuit this week by Asian News International (ANI), the newswire agency that supplies video and text feeds to several news organisations in India
• ANI had sued the Wikipedia parent demanding ₹2 crore for what it said were defamatory allegations in the introduction section of its page on the online encyclopaedia — such as its alleged pro-government bias and tendency to cite misinformation. 
• The Hon’ble Delhi High Court has issued a summons to the Wikimedia Foundation regarding a defamation case filed by ANI against the Foundation.
• Wikipedia’s content is determined by its global community of volunteer editors (also known as the ‘Wikimedia Community’) who compile and share information on notable subjects.”
• Wikipedia’s volunteer-centric editorial norms against Indian regulations like the IT Rules, 2021, which require all loosely defined internet “intermediaries” to take action against content online if it is, among other things, defamatory, and a court or government order is issued against them.
• One of the main constraints in this case is that Wikipedia globally abstains from the kind of article-level control over its content that such regulations demand of online platforms, deferring instead to its vast network of volunteer editors.

IT Rules:

• The IT Rules derive their authority from the Information Technology Act, 2000,which provides legal recognition for electronic commerce.
• Safe Harbour Provision:

• • The Act provides a “safe harbour” for intermediaries that observe due diligence in discharging their duties and follow guidelines prescribed by the state.
• Section 79 of the Act grants immunity to intermediaries, as long as they follow due diligence and state-prescribed guidelines.
• Intermediaries include social media platforms like WhatsApp, Twitter, Facebook, and Instagram.
• The 2021 IT Rules replaced the previous guidelines and sought to regulate intermediaries and digital news media.
• Social media platforms were required to provide technological solutions to identify the first originator of any information, risking privacy.
• The amendments introduced in April 2023 give the government power to decide for itself what information is bogus and exercise wide-ranging powers of censorship by compelling intermediaries to take down posts deemed fake or false.
• The new regulations threaten freedom of speech and civil liberties in India by restricting speech through executive order rather than legislation.
• Article 19(1)(a) of the Indian Constitution grants every citizen the right to freedom of speech and expression, which can only be limited through reasonable restrictions made by law on the grounds stipulated in Article 19(2).
• Fake news and misinformation are not grounds on which speech can be limited, and the amendments made to the IT Rules do not caveat the restraints they place in any manner.

5. Government to observe June 25 as ‘Samvidhaan Hatya Diwas’ to mark Emergency

Sub: Polity

Sec: Constitution

Context:

PM Modi says it is a reminder of what happened when “Constitution was trampled over”; Congress slams government’s decision and calls it “another headline grabbing exercise”

More About News:

• The Union government has decided to observe June 25 — the day that the Emergency was imposed in 1975 — as ‘Samvidhaan Hatya Diwas’,
• “This day will commemorate the massive contributions of all those who endured the inhuman pains of the 1975 Emergency,”.
• “The observance of ‘Samvidhaan Hatya Diwas’ will help keep the eternal flame of individual freedom and the defense of our democracy alive in every Indian, thus preventing dictatorial forces like the Congress from repeating those horrors”.
• “It is also a day to pay homage to each and every person who suffered due to the excesses of the Emergency, a Congress-unleashed dark phase of Indian history”.

Samavidhaan Hatya Diwas:

• Constitution Assasination Day.
• After the Emergency was declared on June 25, 1975, there was “gross abuse of power… and people of India were subjected to excesses and atrocities”. The people of India have abiding faith in the Constitution and the power of its resilient democracy.
• (1975-1977): The third and most controversial national emergency was declared in 1975, primarily due to “internal disturbance” amidst internal political unrest. This period witnessed a significant suspension of civil liberties.

Impacts Imposed during 1975 Emergency:

• Constitution (39th Amendment) Act, 1975was enacted in response to the Allahabad High Court’s ruling declaring PM Indira Gandhi’s election void.
  • The Act placed disputes involving the president, Vice President, prime minister, and Speaker beyond the judiciary’s scope and included certain Central Acts in the Ninth Schedule

6. Deregulating Non-Subsidised Fertilisers

Sub: Economy

Sec: National Income

Urea, a crucial fertiliser, has had its maximum retail price (MRP) fixed since 2012 and is unlikely to be decontrolled or see a price hike soon.

Similarly, other non-urea fertilisers under the nutrient-based subsidy (NBS) regime, though technically decontrolled, face informal price controls.

Why Deregulate Non-Subsidised Fertilisers?

• Expand the Market:
  • Deregulating non-subsidised fertilisers can help expand the market for innovative and high-efficiency fertiliser products.
• Reduce Bureaucratic Delays:
  • The registration process for new fertiliser products in India is lengthy, taking an average of 804 days. Deregulation could streamline this process and make it easier for new products to enter the market.
• Encourage Innovation:
  • By reducing regulatory barriers, companies can introduce new nutrient products more quickly, providing farmers access to advanced fertilisers used in other countries.

Case for Deregulation

• Current Fertiliser Sales:
  • The majority of fertiliser sales are dominated by a few products, with 94% of overall sales in 2022-23 and 2023-24 comprising seven main fertilisers, including urea and DAP.
• Precedent in Water-Soluble Fertilisers (WSF):
  • The government has already implemented a deregulation model for WSFs. These fertilisers, which are 100% soluble in water, can be applied through drip irrigation or spraying and are subject to automatic registration if they meet basic quality standards and labeling requirements.
• Potential Benefits of Deregulation:
  • Increased Access to Innovative Products: Farmers could access the latest fertiliser technologies without waiting for prolonged registration processes.
  • Higher Nutrient Absorption: WSFs and liquid fertilisers offer higher nutrient use efficiency compared to traditional bulk fertilisers, improving crop yield and quality.
  • Cost Efficiency: While WSFs are more expensive, their higher nutrient absorption rates make them more cost-effective in the long run.

Implementation Challenges

• Quality Control:
  • Ensuring that deregulated fertilisers meet minimum nutrient content and maximum contaminant limits is crucial. This requires robust enforcement mechanisms.
• Market Dynamics:
  • Deregulation may affect the prices and availability of subsidised fertilisers, which could have implications for small and marginal farmers reliant on these subsidies.

About the PM-PRANAM Scheme (PM Programme for Restoration, Awareness, Generation, Nourishment, and Amelioration of Mother Earth) scheme

The main objective of the PM-PRANAM scheme is to reduce the use of chemical fertilizers by incentivizing states to adopt alternative fertilizers, thus encouraging a balanced use of fertilizers in conjunction with bio-fertilizers and organic fertilizers.

• Incentives for States:
  • States that adopt alternative fertilizers will be incentivized with the subsidy saved by reducing the use of chemical fertilizers.
  • Half of the subsidy savings will be passed on to the state that saves the money as a grant.
• Utilization of Grants:
  • 70% of the grant can be used to create assets related to the technological adoption of alternate fertilizers and alternate fertilizer production units at the village, block, and district levels.
  • 30% of the grant can be used to reward and encourage farmers, panchayats, and other stakeholders involved in fertilizer reduction and awareness generation.
• Evaluation Mechanism:
  • The government will evaluate the utilization of fertilizers in terms of increase or decrease in overall consumption in a year vis-a-vis consumption over the past three years.
  • The Integrated Fertilizers Management System (iFMS) will be the platform used to track the use of fertilizers.

Funding Mechanism:

• The PM-PRANAM scheme will not have a separate budget.
• It will be financed by the savings from existing fertilizer subsidies under current schemes.
• The scheme ensures that the saved subsidies are used effectively to promote the adoption of alternative fertilizers.

The PM-PRANAM scheme is a significant initiative aimed at promoting sustainable agriculture by reducing the reliance on chemical fertilizers and encouraging the use of bio-fertilizers and organic fertilizers.

7. RBI Allows Foreign Currency Accounts in GIFT City

Sub: Economy

Sec:  External Sector

The Reserve Bank of India (RBI) has allowed Indian citizens to open foreign currency accounts (FCA) in the International Financial Service Centre (IFSC) at Gujarat International Finance Tech-city (GIFT City) in Gujarat. This decision comes as a significant development for investors, especially given the current restrictions on mutual funds (MFs) investing in overseas equities due to the $8 billion cap.

• Relief for Investors:
  • The RBI’s move is a major relief as mutual funds’ investments in overseas equities have been frozen after reaching the $8 billion cap.
  • This includes a $1 billion limit specifically for overseas exchange-traded funds (ETFs).
• Enhanced Investment Opportunities:
  • The new regulation allows Indian residents to open FCAs in GIFT City, enabling them to manage up to $250,000 annually for international transactions without prior RBI approval.
  • This facilitates broader global investment opportunities, allowing individuals to diversify their portfolios with stocks, bonds, and other foreign assets.
• Global Financial Participation:
  • By opening FCAs in GIFT City, individuals can keep their funds within the Indian financial system while participating in global financial activities.
  • This is particularly beneficial for high net worth individuals who typically open accounts in international financial hubs like Dubai and Singapore.
• Progressive Financial Reforms:
  • This measure is seen as a progressive step towards achieving full convertibility of the Indian rupee and establishing it as a global currency.
  • It aligns GIFT City with other international financial centres, enhancing its global competitiveness.

Conclusion

The RBI’s decision to allow foreign currency accounts in GIFT City is a significant step towards liberalizing India’s financial sector. It opens up new avenues for Indian investors, promoting financial inclusion and facilitating broader global investment opportunities. This move not only provides relief amidst the restrictions on mutual funds’ overseas investments but also positions GIFT City as a competitive international financial hub.

Current Account Convertibility

India achieved full current account convertibility in August 1994. This means that all transactions related to trade in goods and services, interest payments, and remittances can be freely conducted without restrictions.

• Trade in Goods and Services:
  • Importers and exporters can convert their earnings and payments between the Indian rupee and foreign currencies without restriction.
  • This facilitates international trade and investment.
• Interest Payments and Remittances:
  • Individuals and businesses can freely remit interest payments and receive remittances from abroad.
  • Non-resident Indians (NRIs) can send money back to India without any limits.

Capital Account Convertibility

India has partial capital account convertibility. This means that there are certain restrictions on the conversion of the rupee into foreign currencies for capital transactions.

• Foreign Direct Investment (FDI):
  • FDI is largely liberalized, and foreign investors can invest in most sectors without prior government approval.
  • There are some sectors with caps on foreign ownership and areas where government approval is required.
• Foreign Portfolio Investment (FPI):
  • Foreign institutional investors (FIIs) and foreign portfolio investors (FPIs) can invest in Indian securities such as stocks and bonds.
  • There are certain limits on the amount of investment in specific sectors and types of securities.
• External Commercial Borrowings (ECBs):
  • Indian companies can raise debt from foreign lenders, but there are regulations governing the amount, maturity, and cost of these borrowings.
• Outbound Investments:
  • Indian companies can invest abroad, but these investments are subject to limits and regulatory approvals.
  • Individuals can also invest abroad under the Liberalized Remittance Scheme (LRS), which allows them to remit up to USD 250,000 per financial year for various purposes, including investments.

8. NABARD Launches ₹750-Crore Agri Fund to Boost Innovation

Sub: Economy

Sec:  Infrastructure

The National Bank for Agriculture and Rural Development (NABARD) has introduced a new initiative aimed at fostering innovation in agriculture and rural enterprises.

The initiative, known as the Agri-SURE fund, is designed to support start-ups and rural enterprises with a substantial financial backing.

•   Fund Size: ₹750 crore
•   Managing Entity: Nabventures, a wholly owned subsidiary of NABARD
•   Funding Contributors:
  • NABARD: ₹250 crore
  • Agriculture Ministry: ₹250 crore
  • Other Institutions: ₹250 crore

Purpose and Structure

• Objective: The Agri-SURE fund aims to promote innovation in the agriculture sector by providing financial support to start-ups and rural enterprises.
• Target Beneficiaries: The fund is structured to support approximately 85 start-ups.
• Investment Size: Each start-up can receive investments of up to ₹25 crore by the end of the fund’s term.

Implications

• Innovation in Agriculture: The fund is expected to stimulate innovation in the agriculture sector by providing essential capital to start-ups working on new technologies and methodologies.
• Rural Development: By supporting rural enterprises, the fund aims to contribute to the overall development of rural areas, creating new jobs and enhancing the local economy.
• Collaboration: The initiative highlights a collaborative approach between NABARD, the agriculture ministry, and other financial institutions, pooling resources to create a substantial impact.