Daily Prelims Notes 15 April 2022

April 25, 2022
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Daily Prelims Notes

15 April 2022

Table Of Contents

1. Long Period Average

Subject: Geography

Section: Monsoon

Context- The IMD’s prediction of a normal monsoon on Thursday was based on the LPA of the 1971-2020 period, during which India received 87 cm of rain for the entire country on average.

Concept-

The IMD predicts a “normal”, “below normal”, or “above normal” monsoon in relation to a benchmark “long period average” (LPA).
According to the IMD, the “LPA of rainfall is the rainfall recorded over a particular region for a given interval (like month or season) average over a long period like 30 years, 50 years, etc”.
The IMD’s latest prediction of a normal monsoon was based on the LPA of the 1971-2020 period, during which India received 87 cm of rain for the entire country on average.
The IMD has in the past calculated the LPA at 88 cm for the 1961-2010 period, and at 89 cm for the period 1951-2000.
While this quantitative benchmark refers to the average rainfall recorded from June to September for the entire country, the amount of rain that falls every year varies from region to region and from month to month.
Therefore, along with the countrywide figure, the IMD also maintains LPAs for every meteorological region of the country — this number ranges from around 61 cm for the drier Northwest India to more than 143 cm for the wetter East and Northeast India.

Why LPA is needed:

The IMD records rainfall data at more than 2,400 locations and 3,500 rain-gauge stations.
Because annual rainfall can vary greatly not just from region to region and from month to month, but also from year to year within a particular region or month, an LPA is needed to smooth out trends so that a reasonably accurate prediction can be made.
A 50-year LPA covers for large variations in either direction caused by freak years of unusually high or low rainfall (as a result of events such as El Nino or La Nina), as well as for the periodic drought years and the increasingly common extreme weather events caused by climate change.

Range of normal rainfall:

In its forecast on Thursday, the IMD said: “Southwest monsoon seasonal (June to September) rainfall over the country as a whole is most likely to be normal (96 to 104% of LPA.
The IMD maintains five rainfall distribution categories on an all-India scale. These are:
1. Normal or near normal, when the percentage departure of actual rainfall is +/-10% of LPA, that is, between 96-104% of LPA;
2. Below normal, when departure of actual rainfall is less than 10% of LPA, that is 90-96% of LPA;
3. Above normal, when actual rainfall is 104-110% of LPA;
4. Deficient, when departure of actual rainfall is less than 90% of LPA; and
5. Excess, when the departure of actual rainfall is more than 110% of LPA.

About India Meteorological Department:

IMD was established in 1875.
It is an agency of the Ministry of Earth Sciences of the Government of India.
It is the principal agency responsible for meteorological observations, weather forecasting and seismology.

2. UPI-Based Payments Service

Subject: Science and Technology

Section:

Context- Meta’s instant messaging app WhatsApp has received clearance from the National Payments Corporation of India (NPCI) to add 60 million users to its UPI-based payments service WhatsApp Pay.

Concept-

This will take the total permissible number of users on the platform to 100 million.
As a result of this clearance from NPCI, WhatsApp will be able to add 60 million users to its UPI service and take on heavyweight rivals such as Walmart-backed PhonePe and Google Pay, which command a majority of the transactions that happen on UPI.

What does the move mean for other players in the UPI ecosystem?

The NPCI has mandated that no platform should handle more than 30 per cent of total transaction volumes of UPI on a three-month rolling period basis.
However, for bigger players like PhonePe, which commanded a 49 per cent market share in terms of value of transactions in March and Google Pay, which had a 35 per cent market share, it has allowed them time until the end of 2022 to comply with the directive.
So, even as these players could continue commanding a significant market share till the end of this year, the increasing clearance to WhatsApp and the mandate for the others to restrict their share could result in a less skewed market.

About Unified Payments Interface (UPI):

NPCI launched UPI with 21 member banks in 2016.
It is an advanced version of Immediate Payment Service (IMPS)- round–the-clock funds transfer service to make cashless payments faster, easier and smoother.
UPI is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.
UPI is currently the biggest among the National Payments Corporation of India (NPCI) operated systems including National Automated Clearing House (NACH), Immediate Payment Service (IMPS), Aadhaar enabled Payment System (AePS), Bharat Bill Payment System (BBPS), RuPay etc.
The top UPI apps today include PhonePe, Paytm, Google Pay, Amazon Pay and BHIM, the latter being the Government offering.
As part of an agreement, India’s UPI will be linked to Singapore’s PayNow.

National Payments Corporation of India:

NPCI, an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007.
It is a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013), with an intention to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems.

3. Rural Economy Reaps Rich Gains from War

Subject: Economy

Section:

Context- The Russia-Ukraine war has given an opportunity for India to step up wheat exports, benefitting our farmers.

Concept-

The Russian invasion of Ukraine has presented an opportunity for the country’s rural economy.
There could be a silver lining for India with an upsurge in rural sentiments as harvesting of rabi crops is in full swing and prices are at an all-time high, higher than the Minimum Support Price( MSP) in domestic open markets as well as in global markets.
The MSP of wheat is ₹2,015 per quintal whereas the trading price in the open market is in the range of ₹2,200 to ₹2,300 per quintal.
In April, the prices of wheat in open market are up by 17 per cent, mustard by 30 per cent, barley by 67 per cent and soybean up by 36 per cent, in comparison to April 2021.
Mustard, the second most important rabi crop in India has seen a 30 per cent higher sowing in FY22 versus FY21 and will be the second-largest contributor to farm income this year.

Russia and Ukraine’s Share in Exports:

Ukraine is among the largest global exporters of wheat with a share of 12 per
- sunflower form 47 per cent
- barley 17 per cent
- rapeseed 20 per cent
- maize 14 per cent of global exports
Russia also has a strong presence with global exports of
- sunflower 25 per cent
- wheat 18 per cent and
- 14 per cent in barley
A ban on Russian flights to Europe and the US also means opportunities for Indian exporters of processed food, nuts, fruit juices, confectionery, pulse and cereal preparations, according to APEDA.
The prolonged conflict is an opportunity for India to garner a share in the global market by exporting quality wheat (like how we did with Basmati rice) so that Indian wheat remains in demand even after the crisis.

India’s Wheat Production:

After China, India is the world’s second-largest producer of wheat about 1,008 lakh tonnes in 2020-21, contributing around 15 per cent of the world’s total production.
At present, the warehouses overflowing with more than 230 lakh tonnes of wheat stocks against a buffer norm of 70 lakh tonnes and the new crop will start reaching in a week.
Despite holding 400 lakh tonnes of wheat stock in 2016, India hardly exported any of it.
In 2016, India’s global share was just 0.14 per cent and has increased to 0.54 per cent in 2020; even today, it’s less than 1 per cent, and had exported about 78.50 lakh tonnes in 2021-22.
India is drawing up a strategy to step up wheat exports to a record of 100 lakh tonnes in the fiscal year 2022-23.

Challenges in Export:

Absence of requisite transportation infrastructure,
higher cost of transport to seaports in the western region, and
higher levies on grain purchase. The taxation system of Punjab is discouraging as exporters have to pay 8.5 per cent levies, more than any other State.

The way ahead

If we go by the 2020-21 numbers, the lion’s share of Russian and Ukrainian wheat was exported to nations such as Egypt, Indonesia, Turkey, Nigeria, Italy and Bangladesh.
India must focus on these nations.
Setting up a special task force on agri-exports with representatives from the Commerce Ministry, FCI and States procurement agencies, railways, shipping, ports and exporters will boost the country’s rural economy in a big way.

4. International Commission On Stratigraphy

Subject: Science & Tech

Context- Humans will be the first to have a new geological epoch named after the species — an unfortunate event denotative of our irreversible impact on the planet’s ecosystems

Concept –

The Anthropocene Epoch is an unofficial unit of geologic time, used to describe the most recent period in Earth’s history when human activity started to have a significant impact on the planet’s climate and ecosystems.
The word Anthropocene is derived from the Greek words anthropo, for “man,” and cene for “new,” coined and made popular by biologist Eugene Stormer and chemist Paul Crutzen in 2000.
Scientists still debate whether the Anthropocene is different from the Holocene, and the term has not been formally adopted by the International Union of Geological Sciences (IUGS), the international organization that names and defines epochs.
- The primary question that the IUGS needs to answer before declaring the Anthropocene an epoch is if humans have changed the Earth system to the point that it is reflected in the rock strata.
A popular theory is that it began at the start of the Industrial Revolution of the 1800s, when human activity had a great impact on carbon and methane in Earth’s atmosphere.
Others think that the beginning of the Anthropocene should be 1945. This is when humans tested the first atomic bomb, and then dropped atomic bombs on Hiroshima and Nagasaki, Japan. The resulting radioactive particles were detected in soil samples globally.

Geologic Time Scale

Earth’s history is divided into a hierarchical series of smaller chunks of time, referred to as the geologic time scale. These divisions, in descending length of time, are called eons, eras, periods, epochs, and ages.
These units are classified based on Earth’s rock layers, or strata, and the fossils found within them. From examining these fossils, scientists know that certain organisms are characteristic of certain parts of the geologic record. The study of this correlation is called
Officially, the current epoch is called the Holocene, which began 11,700 years ago after the last major ice age.

International Union of Geological Sciences (IUGS)

The International Union of Geological Sciences (IUGS) is an international non-governmental organization devoted to international cooperation in the field of geology.
The International Union of Geological Sciences (IUGS), founded in 1961, with 121 national members, representing over a million geoscientists, is one of the World’s largest scientific organizations.
It encourages international co-operation and participation in the Earth sciences in relation to human welfare and is a member of the International Science Council (ISC).
Membership is open to countries or defined regions.

International Commission on Stratigraphy

The International Commission on Stratigraphy (ICS), sometimes referred to unofficially as the “International Stratigraphic Commission”, is a daughter or major subcommittee grade scientific daughter organization that concerns itself with stratigraphical, geological, and geochronological matters on a global scale.
It is the largest and oldest subordinate body of the International Union of Geological Sciences (IUGS).
The ICS is essentially a permanent working subcommittee, which meets far more regularly than the quadrennial meetings scheduled by the IUGS, when it meets as a congress or membership of the whole.
It is the official keeper of geologic time, i.e. it precisely defines units (periods, epochs, and age) of the Geologic Time Scale.
The International Commission on Stratigraphy (ICS) is the largest and oldest scientific body in the International Union of Geological Sciences (IUGS).
It is the official keeper of geologic time, i.e. it precisely defines units (periods, epochs, and age) of the Geologic Time Scale.

What is Geological Time Scale?

Geologists divide the 4.6-billion-year existence of Earth into slices of time such as Eon, Era, System/Period, Series/Epoch, and Stage/Age.
Eons are divided into Eras, Eras into Periods, Periods into Epochs, and Epochs into Ages.
Each slice corresponds to significant happenings – such as the break-up of continents, dramatic shifts in climate, and even the emergence of particular types of animals and plant life

5. ORS

Subject: National bodies

Section: Food

Context- Misuse of ‘ORS’ on beverage labels: FSSAI asks State food safety commissioners to take action

Concept-

The Food Safety and Standards Authority of India (FSSAI) has directed State food safety commissioners to take action against brands that are misusing the term Oral Rehydration Salts (ORS) on the labels of beverage products.
Terming it as a case of misbranding, the regulator said such products, labelled with terms containing ORS, are misleading for consumers and could be harmful for patients.
The food safety authority said it has received complaints that some fruit-based and non-car- bonated ready-to-drink beverage manufacturers use terms such as ORSL, ORSL Rehydrate, and Electro Plus ORS, among others, which are similar to ORS.
The use of term ‘ORS’ or similar to ‘ORS’ and/or depiction of the food products as ‘ORS’ on their labels or through advertisement is not allowed under the food safety and standards regulations, and use of such terms may render the products as ‘misbranded food’, which may render such FBOs liable for punishment under Section52 and Section53 of the Food Safety and Standards Act, 2006.
The regulator stated that ORS is governed under the Drugs and Cosmetics Rules, which is used for the treatment of acute diarrhoea and needs to have a speciﬁc composition prescribed by the Drugs Controller General of India.

About FSSAI:

Food Safety and Standards Authority of India (FSSAI) is an autonomous statutory body established under the Food Safety and Standards Act, 2006 (FSS Act).
Ministry of Health & Family Welfare, Government of India is the administrative Ministry of FSSAI with its Headquarters in Delhi.
Various acts were subsumed & repealed after commencement of FSS Act, 2006.
- Prevention of Food Adulteration Act, 1954
- Fruit Products Order, 1955
- Meat Food Products Order, 1973
- Vegetable Oil Products (Control) Order, 1947
- Edible Oils Packaging (Regulation) Order 1988
- Milk and Milk Products Order, 1992
FSSAI is responsible for protecting and promoting public health through the regulation and supervision of food safety.

6. Wildlife Protection (Amendment) Bill 2021

Subject: Environment

Section: Environment law

Context- The parliamentary panel has urged the Union government to remove the controversial clause in the Wildlife (Protection) Amendment Bill, 2021 that overrides the original Act, making an exception only for elephants.

Concept-

The amended Bill was introduced in the Lok Sabha on December 17, 2021 and was referred to the parliamentary panel on December 25.
The panel will hold a ﬁnal round of meeting on Monday on its report on the le- gislation.
Section 43 of the principal Act clearly states: “No person having in his possession captive animal, animal article, trophy or uncured trophy in respect of which he has a certiﬁcate of ownership shall transfer by way of sale or oﬀer for sale or by any other mode of consideration of commercial nature, such animal or article or trophy or uncured trophy.”
The amended Bill introduces an exemption clause for elephants.
The exemption clause to Section 43 says: “This section shall not apply to the transfer or transport of any live elephant by a person having a certiﬁcate of ownership, where such person has obtained prior permission from the State government on fulﬁlment of such conditions as may be prescribed by the Central Government.

Wildlife (Protection) Act, 1972:

The Act was enacted for the protection of plants and animal species.
It has six schedules that give varying degrees of protection.
Schedule I and part II of Schedule II provide absolute protection – offenses under these are prescribed the highest penalties.
Species listed in Schedule III and Schedule IV are also protected, but the penalties are much lower.
Schedule V includes the animals which may be hunted. The specified endemic plants in Schedule VI are prohibited from cultivation and planting. The hunting to the Enforcement authorities has the power to compound offenses under this Schedule (i.e. they impose fines on the offenders).
The act has been amended in 1982, 1986, 1991, 1993, 2002, 2006 and 2013.

7. FDI Trends

Subject: Economy

Section: External Sector

Why in the news?

India is expected to attract $100 billion foreign direct investment (FDI) in 2022-23 on the back of economic reforms and ease of doing business in recent years, industry chamber PHDCCI said on Thursday.

It has suggested a ten pronged strategy to strengthen the economic growth and achieve the target of becoming a $5 trillion economy in next five years.

The suggestions include speedy infrastructure investments, inclusion of more sectors under the PLI scheme, increase in public investments in agriculture sector, addressing the high commodity prices and shortages of raw materials.

Concept:

Any investment from an individual or firm that is located in a foreign country into a country is called Foreign Direct Investment. Generally, FDI is when a foreign entity acquires ownership or controlling stake in the shares of a company in one country, or establishes businesses there.

It is different from foreign portfolio investment where the foreign entity merely buys equity shares of a company.

Three Components:

Equity capital is the foreign direct investor’s purchase of shares of an enterprise in a country other than its own.
Reinvested earnings comprise the direct investors’ share of earnings not distributed as dividends by affiliates, or earnings not remitted to the direct investor. Such retained profits by affiliates are reinvested.
Intra-company loans or intra-company debt transactions refer to short- or long-term borrowing and lending of funds between direct investors (or enterprises) and affiliate enterprises.

Routes through which India gets FDI:

Automatic Route: In this, the foreign entity does not require the prior approval of the government or the RBI.
Government Route: In this, the foreign entity has to take the approval of the government.
- The Foreign Investment Facilitation Portal (FIFP) facilitates the single window clearance of applications which are through approval route.
- It is administered by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.

Trends:

India has received Foreign Direct Investment (FDI) inflows worth USD 339.55 billion in the last five years. It increased from USD 45.15 billion in 2014-15 to USD 81.97 billion in 2020-21.
As per the World Investment Report 2021 by the UN Conference on Trade and Development (UNCTAD),India was the fifth-largest recipient of Foreign Direct Investment (FDI) inflows in the world in 2020.
In the Financial Year 2020-21, India sees growth of 10% (to $82 bn) in Foreign Direct Investment (FDI). FDI equity investments rose 19% to $60 billion.
In April 2020, the DPIIT came out with a new rule, which stated that the entity of any company that shares a land border with India or where the beneficial owner of investment into India is situated in or is a citizen of such a country can invest only under the Government route. In other words, such entities can only invest following the approval of the Government of India.
Financial year 2021-22
- Foreign Investment, consisting of foreign direct investment (FDI) and foreign portfolio investment (FPI), is the largest component of the capital account. Falling short of the pre pandemic level, the net foreign investment inflows (FIIs) – primarily driven by FDI – moderated to US$ 25.4 billion in H1: FY 22 compared to corresponding period of FY 21.
- Total foreign direct investment (FDI) inflow to India declined to $74.01 billion in the calendar year 2021 a decline of15 percent as compared to calendar year 2020,
- Sectors attracting highest FDI Equity Inflows-Computer Software & Hardware> Automobile Industry> Services Sector> Trading > Telecommunications
- Top FDI investing countries- Singapore>U.S.A.>Mauritius>Netherlands>Japan

8. Conversion of NBFC into Banks

Subject: Economy

Context: Tightening regulatory norms on non-banking finance companies (NBFCs)

Concept:

What are NBFCs

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.

A non-banking institution which is a company and has principal business of receiving deposits under any scheme or arrangement in one lump sum or in instalments by way of contributions or in any other manner, is also a non-banking financial company (Residuary non-banking company).

Financial activity as principal business is when a company’s financial assets constitute more than 50 per cent of the total assets and income from financial assets constitute more than 50 per cent of the gross income. A company which fulfils both these criteria will be registered as NBFC by RBI.

The term ‘principal business’ is not defined by the Reserve Bank of India Act. The Reserve Bank has defined it so as to ensure that only companies predominantly engaged in financial activity get registered with it and are regulated and supervised by it. Hence if there are companies engaged in agricultural operations, industrial activity, purchase and sale of goods, providing services or purchase, sale or construction of immovable property as their principal business and are doing some financial business in a small way, they will not be regulated by the Reserve Bank. Interestingly, this test is popularly known as 50-50 test and is applied to determine whether or not a company is into financial business.

What is difference between banks & NBFCs?

NBFCs lend and make investments and hence their activities are akin to that of banks; however there are a few differences as given below:

NBFC cannot accept demand deposits
NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself
Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.

Is it necessary that every NBFC should be registered with RBI?

In terms of Section 45-IA of the RBI Act, 1934, no Non-banking Financial company can commence or carry on business of a non-banking financial institution without a) obtaining a certificate of registration from the Bank and without having a Net Owned Funds of ₹ 25 lakhs (₹ Two crore since April 1999). However, in terms of the powers given to the Bank, to obviate dual regulation, certain categories of NBFCs which are regulated by other regulators are exempted from the requirement of registration with RBI viz. Venture Capital Fund/Merchant Banking companies/Stock broking companies registered with SEBI, Insurance Company holding a valid Certificate of Registration issued by IRDA, Nidhi companies as notified under Section 620A of the Companies Act, 1956, Chit companies as defined in clause (b) of Section 2 of the Chit Funds Act, 1982,Housing Finance Companies regulated by National Housing Bank, Stock Exchange or a Mutual Benefit company.

What are the requirements for registration with RBI?

A company incorporated under the Companies Act, 1956 and desirous of commencing business of non-banking financial institution as defined under Section 45 I(a) of the RBI Act, 1934 should comply with the following:

it should be a company registered under Section 3 of the companies Act, 1956
It should have a minimum net owned fund of ₹ 200 lakh. (The minimum net owned fund (NOF) required for specialized NBFCs like NBFC-MFIs, NBFC-Factors, CICs is indicated separately in the FAQs on specialized NBFCs)

9. Prudential Norms

Subject: Economy

Section: Monetary Policy

Context:

Non-performing Assets

An asset, including a leased asset, becomes non performing when it ceases to generate income for the bank. A non performing asset (NPA) is a loan or an advance where:

interest and/ or installment of principal remains overdue for a period of more than 90 days in respect of a term loan,
the account remains ‘out of order’, in respect of an Overdraft/Cash Credit
the bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted,
the installment of principal or interest thereon remains overdue for two crop seasons for short duration crops,
the installment of principal or interest thereon remains overdue for one crop season for long duration crops,
the amount of liquidity facility remains outstanding for more than 90 days, in respect of a securitisation transaction undertaken in terms of the Reserve Bank of India (Securitisation of Standard Assets) Directions, 2021.
the overdue receivables representing positive mark-to-market value of a derivative contract, remain unpaid for a period of 90 days from the specified due date for payment with respect of derivative transactions,

Out of Order

Cash credit/Overdraft (CC/OD) account is classified as NPA if it is ‘out of order’.An account shall be treated as ‘out of order’ if:

the outstanding balance in the CC/OD account remains continuously in excess of the sanctioned limit/drawing power for 90 days, or
the outstanding balance in the CC/OD account is less than the sanctioned limit/drawing power but there are no credits continuously for 90 days, or
the outstanding balance in the CC/OD account is less than the sanctioned limit/drawing power but credits are not enough to cover the interest debited during the previous 90 days period.

Asset Classification

Banks are required to classify non performing assets further into the following three categories based on the period for which the asset has remained non performing and the realisability of the dues:

Substandard Assets-remained NPA for a period less than or equal to 12 months.
Doubtful Assets-an asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.
Loss Assets-A loss asset is one where loss has been identified by the bank or internal or external auditors or the RBI inspection but the amount has not been written off wholly. In other words, such an asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted although there may be some salvage or recovery value.

Income Recognition:

Internationally income from NPA is not recognized as income on an accrual basis but is booked as income only when it is actually received. The banks should not charge and take income account interest on any NPA. This will apply to Government guaranteed accounts also.

However, interest on advances against Term Deposits, National Savings Certificates (NSCs), Indira Vikas Patras (IVPs), Kisan Vikas Patras (KVPs) and Life policies may be taken to income account on the due date, provided adequate margin is available in the accounts.

Fees and commissions earned by the banks as a result of renegotiations or rescheduling of outstanding debts should be recognised on an accrual basis over the period of time covered by the renegotiated or rescheduled extension of credit.

If any advance becomes NPA, the entire interest accrued and credited to the income account in the past periods, should be reversed if the same is not realized. This will apply to Government guaranteed accounts also.

Provisioning

Banks/Financial Institutions are required to set aside a portion of their income as provision for the loan assets so as to be prepared for any contingent losses that may arise in the event of non-recovery of loans.

The amount of provision to be kept by the bank/FI, will depend on the probability of loan recovery. This probability of loan recovery is identified based on the asset classification of the loan asset. The minimum provision that a bank has to create for various types of assets is as follows:

Asset classification	Minimum provision
Standard assets	SME & Agri – 0.25% Commercial Residential – 0.75% Commercial – 1% Others – 0.40%
Sub-standard assets	15% (25% for unsecured portion
Doubtful Assets	Secured
	Up to 1Y	25%
	1-3Y	40%
	>3Y	100%
	Unsecured	100%
Loss asset	100%

10. Annual Survey of Industries

Subject: Economy

Section: National income

Context: ASI losing relevance

Concept:

Annual Survey of Industries (ASI) is conducted by National Statistical Office (NSO).
ASI is principal source of industrial statistics in India.
ASI, an annual event, not only facilitates suitable data collection based on appropriate sampling techniques but also ensures timely dissemination of statistical information to asses and evaluate the dynamics in composition, growth and structure of organized manufacturing sector.
The structure and function of the industrial sector is an important perspective of Indian Economy. It is imperative for industries to grow both qualitatively and quantitatively to boost the economy. The well-being of the industries depends truly on the formulation and promotion of industrial policies framed by the policy makers.
To frame suitable industrial policies the policy makers need to be aware about the quantified aspect of the existing scenarios in the industries in the country. This is where the Annual Survey of Industries (ASI) is conducted by National Statistical Office, Ministry of Statistics & Programme Implementation, Government of India.

11. Ghost of Asbestos mining that haunts Jharkhand

Subject: Geography

Section: Minerals and Energy Resources

Context: Many elderly people in Roro village of Jharkhand have breathing disorders and other lung-related ailments. It was alleged that these are the after-effects of asbestos mining, which was stopped in the region almost four decades ago.

Concept:

Roro village (mostly inhabited by the Ho Tribal community) is at the foothills of a mountain in the West Singhbhum district of Jharkhand. Majority of the villagers are dependent on the minor forest produce for their livelihood.
Asbestos mining in the region stopped in 1983 – nearly four decades ago.
Then, in 1986, the Indian government banned giving new mining leases for asbestos mining and in 1993 it stopped the renewal of existing mining leases. The ban on asbestos mining was done in phases between 1986 to 1993.
Asbestos mining is now banned in India but experts note that authorities failed to ensure scientific reclamation of the mines, leaving the local communities exposed to it.
Unaware of the health hazards, several generations of Roro’s residents have been exposed to the asbestos waste lying near the village. Many struggle to breathe and there are also cases of eye disorders and cancer in the village.

Asbestos and Human Health:

Asbestos is a silicate compound found naturally in the environment and the mining operations used to extract it from the hills which had a rich source of this compound.
Asbestos fibres are cancer-causing (carcinogenic). According to medical studies, once inhaled, the asbestos fibres remain on lung tissues for a longer period leading to scarring and inflammation which ultimately leads to difficulty in breathing.
According to WHO, “All types of asbestos cause lung cancer, mesothelioma, cancer of the larynx and ovary, and asbestosis (fibrosis of the lungs) among the exposed workers and communities.
Asbestosis is a notified disease under The Mines Act, 1952. In asbestosis, the disease manifestation can take 20-30 years.
Exposure to asbestos occurs through inhalation of fibres in air in the working environment, ambient air in the vicinity of point sources such as factories handling asbestos, or indoor air in housing and buildings containing friable (crumbly) asbestos materials. WHO claims that around 125 million people around the world are exposed to asbestos in their workplace.

Status of Asbestosis’ use in India:

Many countries have banned its extraction and usage. However, India still imports the compound and uses it in the automobile sector, talcum powder, construction and other sectors.
According to government data, in 2019-20, India imported 361,164 tonnes of asbestos. The main imports were through Russia (85 percent), Brazil, Kazakhstan and Hungary (three percent each), besides imports from Poland and South Africa. India is also said to be the largest importer of asbestos in the world. However, the government records claim that the imports have declined in the past few years.

Legal Battle:

In 1988, under the Mineral Conservation and Development Rules, 1988, GOI talked about restoring and reclaiming the mined areas for sustainable development. Despite the laws being there, several miners continue to flout the reclamation and restoration laws.
The Supreme Court of India in a landmark judgement in 1995 had asked the asbestos industries to pay compensation for the health hazards to their workers besides ordering asbestos industries to keep health records of their employees for 40 years since their recruitment and up to 15 years after they leave the company besides their accurate diagnosis.
In 2019, the National Green Tribunal (NGT) asked the Jharkhand government to ensure scientific removal of the dumped asbestos from the Roro Village. The state government vowed to use the District Mineral Foundation (DMF) funds and other resources to mitigate the effects of exposure to asbestos to the village. But, in 2022, the dumped waste continues to lie in the open, and the local tribal community is exposed to it.