Daily Prelims Notes 15 June 2022

Daily Prelims Notes

15 June 2022

1. Chilean Lake Turns to Desert

Subject: Geography

Section: Mapping 

Context:

The Penuelas reservoir in central Chile was until 20 years ago the main source of water for the city of Valparaiso, holding enough water for 38,000 Olympic-size swimming pools. Water for only two pools now remains.

Geographical location 

Peñuelas Lake is a reservoir in Valparaíso Region, Chile. It supplies drinking water, together with another lake called Los Aromos, to Valparaíso and Viña del Mar. The reservoir and the surrounding area are protected within Lago Peñuelas National Reserve, which is part of La Campana-Peñuelas Biosphere Reserve.

Reasons for lake turning into desert: 

• Amid an historic 13-year drought, rainfall levels have slumped in Chile, which hugs the continent’s Pacific coast.
• Higher air temperatures have meant snow in the Andes, once a key store of meltwater for spring and summer, is not compacting, melts faster, or turns straight to vapor.
• The drought has hit mine output in the world’s largest copper producer, stoked tensions over water use for lithium and farming, and led capital Santiago to make unprecedented plans for potential water rationing.
• Normally, low-pressure storms from the Pacific unload precipitation over Chile in winter, recharging aquifers and packing the Andes Mountains with snow. But naturally occurring warming of the sea off Chile’s coast, which blocks storms from arriving, has been intensified by rising global sea temperature, according to a global study on sea temperature and rainfall deficits.
• Ozone depletion and greenhouse gasses in the Antarctic, meanwhile, exacerbate weather patterns that draw storms away from Chile, according to a study on variables affecting Antarctic weather.

2. New map of Earth’s tectonic plates

Subject: Geography

Section: Geomorphology

Context:

New map of Earth’s tectonic plates to help understand quakes, volcanoes better.

 Map of Earth’s tectonic plates

• Researchers from the University of Adelaide, Australia, have carried out a new study that includes an updated map of the earth’s tectonic plates.
• The study will help in forming a better understanding of natural hazards like earthquakes and volcanoes.
• The study, titled New maps of global geological provinces and tectonic plates, delved into the past construction of continents like the first super continent, Vaalbara.
• Vaalbara fragmented to form other super continents over the years, the last being Pangea, which existed some 335-65 million years ago.
• Pangea again gave way to the seven modern continents which make the earth’s land surface today.
• New model for tectonic plates better explains the spatial distribution of 90 percent of earthquakes and 80 percent of volcanoes from the past two million years whereas existing models only capture 65 percent of earthquakes.

What is a tectonic plate?

• A tectonic plate is a massive, irregularly shaped slab of solid rock, made up of the lithosphere or the earth’s top layer. Tectonic plate movements often lead to earthquakes and volcanoes.
• Plate tectonics theory:
• Plate tectonics is a scientific theory that explains how major landforms are created as a result of Earth’s subterranean movements.
• The theory, which solidified in the 1960s, transformed the earth sciences by explaining many phenomena, including mountain building events, volcanoes, and earthquakes.

3. Climate change and La Niña

Subject: Geography

Section: Climatology

Context:

Climate change is pushing countries like Ethiopia, Kenya and Somalia into a famine as they face their fifth consecutive deficit rainy seasons. Climate change is making the La Niña impact severe’.The ongoing La Nina may become the longest on record.

What is La Niña?

• La Niña is a climate pattern that describes the cooling of surface ocean waters along the tropical west coast of South America. 
• La Nina is considered to be the counterpart to El Nino, which is characterized by unusually warm ocean temperatures in the equatorial region of the Pacific Ocean.

Impact of La Niña in East Africa

• East Africa is experiencing its worst drought spell in four decades. The last rainy season — March to May — was the driest one in over 70 years for Ethiopia, Kenya and Somalia.
• The exceptional weather situation is attributed to La Niña, a natural large-scale cooling of ocean surface temperature in the central and eastern equatorial Pacific Ocean. This is causing the dry weather and high temperatures in East Africa.
• The current spell of La Niña has been protracted unusually, as the World Meteorological Organization (WMO) said in its bulletin. It started in 2020 and will continue to persist through 2022, with a high possibility of continuing into 2023.

La Niña and its changing nature:

• The ongoing La Nina may become the longest on record.
• The character of La Nina — an ocean-atmosphere event that usually brings down global temperatures — is changing, indicating a shift in natural climatic patterns in a warming world.
• There are chances that the current La Nina could continue through the southwest monsoon season, winter of 2022 and even early 2023, and could lead to devastating and unpredictable consequences for India and many other regions around the world.
• India can experience a prolonged monsoon season the third year in a row, for instance. The monsoon seasons of 2020 and 2021 were also extended, leading to an increase in extreme rainfall events during the period and subsequent floods in many states. The extension had most likely happened because of the impact of La Nina, according to climate scientists.

4. Agni path recruitment scheme: Why it can help cut the rising salary, pension bill

Subject: Governance

Section: Scheme

Context:

The Agnipath scheme on recruitment of soldiers, sailors and airmen will help cut the salary and pension bill of the armed forces

What is the Agnipath scheme?

• Under the scheme, around 45,000 to 50,000 soldiers will be recruited annually, and most will leave the service in just four years.
• Of the total annual recruits, only 25 per cent will be allowed to continue for another 15 years under permanent commission.
• This will be the only form of recruitment of soldiers into the three defence services from now
• Recruits under the scheme will be called as ‘Agniveers’

What is the eligibility criteria?

Aspirants between the ages of 17.5 years and 21 years will be eligible to apply

• The new system is only for personnel below officer ranks (those who do not join the forces as commissioned officers)
• Pay and Benefits under the scheme:
• During this period, they will get a starting salary of Rs 30,000, along with additional benefits which will go up to Rs 40,000 by the end of the four-year service.
• During this period, 30 per cent of their salary will be set aside under a Seva Nidhi programme, and the government will contribute an equal amount every month, and it will also accrue interest
• At the end of the four-year period, each soldier will get Rs 11.71 lakh as a lump sum amount, which will be tax-free
• They will also get a Rs 48 lakh life insurance cover for the four years.
• In case of death, the payout will be over Rs 1 crore, including pay for the unserved tenure
• How will the scheme benefit the armed forces?
• The scheme envisions, The average age in the forces is 32 years today, which will go down to 26 in six to seven years
• It will create “future-ready” soldiers
• It will help to create youthful armed forces. A youthful armed forces will allow them to be easily trained for new technologies.
• The move will make the permanent force levels much leaner for the over 13-lakh strong armed forces in the country. This in turn reduces the defence pension bill, which has been a major concern for governments

How will the scheme benefit the recruits?

• Because of the skills and experience acquired during the four-year service such soldiers will get employment in various fields and it will create employment opportunities
• This will lead to availability of a higher-skilled workforce to the economy which will be helpful in productivity gain and overall GDP growth
• It will also help rehabilitate soldiers who leave the services after four years
• They will be provided with skill certificates and bridge courses. The impetus will be to create entrepreneurs

5. RBI’s Draft OEIF Guidelines Concerns

Subject: Economy

Section: Monetary Policy

Context: Following the RBI’s draft guidelines on Online Export-Import facilitators Guidelines (OEIF guidelines) released on April 7, several industry bodies and experts have raised concerns.

Concept:

OEIF:

• OEIFs were earlier referred to as Online Payment Gateway Service Providers (OPGSPs).
• The proposed guidelines on processing and settlement of small-value export and import related payments were drafted with the objective of simplifying and rationalising the process for settlement of payments for export and import through e-commerce.
• Currently, the banks are permitted by the RBI to offer the facility of settlement and the processing of export and import-related remittances.
• Transaction Limit:Regarding import transactions, the RBI has proposed that this facility will be made available for the online import of digital products and goods that do not exceed the value of USD 3,000. In the case of exports, the limit of USD 15,000 has been proposed.

Concerns:

• Omitted services as a category for exports – and have only retained goods and digital products. But, for the last 12 years, the export of services was allowed.
• Impact Service exporters– There are about 6-7 lakh small traders exporting goods and services worth roughly around ₹30,000 crore every year from India, and the export transaction limit at a time is $10,000. Out of this ₹30,000 crore, 50-60 per cent is service exports. This new move will likely impact 3-4 lakh small exporters as services cover over half of the exports.
• Impact Small value services– Nasscom also voiced out that small value services like yoga classes, chef/cooking classes, accounting services, book-keeping, website designing, online web services, consultancy, education, etc. will be affected.
• Mandatory KYC of importers and exporters– that the OEIFs will be facilitating transactions for. Nasscom highlighted that RBI’s KYC Master Direction — Aadhaar, PAN, etc., are specific to India and may not be possessed by overseas importers.

6. The National Security Advisory Board (NSAB)

Subject: Polity

Section: National Organization

Context: Former National Security Advisory Board Chairman says multiple rounds of talks prove Chinese encroachment occurred in 2020, regardless of govt. statements

Concept:

• The National Security Advisory Board (NSAB) consists of a group of eminent national security experts outside of the government. Members are usually senior retired officials, civilian as well as military, academics and distinguished members of civil society drawn from and having expertise in Internal and External Security, Foreign Affairs, Defence, Science & Technology and Economic Affairs.
• The board meets at least once a month, and more frequently as required. It provides a long-term prognosis and analysis to the NSC and recommends solutions and address policy issues referred to it. Initially the Board was constituted for one year, but since 2004-06, the Board has been reconstituted for two years.

7. Weakening rupee

Subject: Economy

Section:  Market Mechanism

Context: The market drivers of the dollar (USD)-rupee (INR) are now playing out in such a way that they are against the domestic currency.

Content:

• India’s rupee has fallen 4.7 per cent versus the dollar.
• The rupee broke the range of 77.50-77.80 on the downside on Monday and hit a record low of 78.28.
• There is a possibility for it to touch 79 in the near term.

Reasons for Rupee Depreciation:

• Huge Net FPI outflows: The net FPI outflows in June so far is $2.8 billion.
• Rising Crude oil imports: The Indian basket of crude oil hit a decade-high of $121.28 a barrel last week.
• WPI and CPI Inflation: The WPI inflation at 15.88 in May is at a new high and the May CPI inflation, although has cooled to 7.04 per cent, is higher than RBI’s targeted range.
• Dollar continues to gain strength– as participants are now discounting a 75-bps hike in interest rates by the US Federal Reserve today as US inflation hardened to 8.6 per cent in May.

8. PM lauds unsung heroes of Freedom Struggle

Subject: History

Section: Personalities

Context: Prime Minister inaugurated the “Gallery of Revolutionaries” at the Raj Bhavan in Mumbai.

What is it?

• Hidden below Maharashtra’s Raj Bhavan is a British-era bunker discovered in 2016.
• Converted into a museum in 2019, the bunker will now house a gallery of Indian revolutionaries, called ‘Kranti Gatha’
• It was curated under the guidance of historian and writer Vikram Sampath with assistance from the Nagpur-based South Central Zonal Cultural Centre
• Kranti Gatha’ is a tribute to those from Maharashtra who contributed to the Indian freedom struggle, from the First War of Independence in 1857 to the Royal Indian Navy Mutiny of 1946
• The gallery will feature exhibits dedicated to freedom fighters from Maharashtra, including Vasudev Balwant Phadke, Lokmanya Tilak, V.D. Savarkar, Krantiguru Lahuji Salve, Anant Laxman Kanhere, Bhikaiji Cama and Ganesh Pingale.
• The gallery will also house an exhibit on ‘Abhinav Bharat’, the society founded by Savarkar and his brother in 1904.

Abhinav Bharat:

Mitra Mela, a secret organization of the revolutionaries was established by Vinayak Damodar Savarkar and his brother Ganesh Damodar Savarkar at Nashik in 1899.

• It was later renamed Abhinav Bharat Society (Young India Society) in 1904. The society grew to include several hundred revolutionaries and political activists with branches in various parts of India, extending to London after Savarkar went to study law.
• It was one among several such melas (revolutionary societies) functioning in Maharashtra at that time, which believed in overthrow of British rule by armed rebellion and therefore carried out a few assassinations of British officials.
• In 1906, Vinayak Savarkar left to London to study law. In the same year, he compiled a volume called Mazzini Charitra, a translation of the Italian revolutionary Mazzini’s writings with a 25-page introduction added. The book was published in Maharashtra in June 1907 and the first edition of 2000 copies is said to have sold out within a month. Mazzini’s techniques of secret societies and guerilla warfare were fully embraced by Savarkar.
• Savarkar’s revolutionary propaganda led to the assassination of Col. William Curzon-Wyllie, the political aide-de-camp to the Secretary of State for India, by Madanlal Dhingra on the evening of 1 July 1909, at a meeting of Indian students in the Imperial Institute in London.
• Dhingra was arrested and later tried and executed. A. M. T. Jackson, the district magistrate of Nasik, was assassinated in India by Anant Laxman Kanhare in 1909 in the historic “Nasik Conspiracy Case”.
• The investigation into the Jackson assassination revealed the existence of the Abhinav Bharat Society and the role of the Savarkar brothers in leading it. Vinayak Savarkar was found to have dispatched twenty Browning pistols to India, one of which was used in the Jackson assassination. He was charged in the Jackson murder and sentenced to “transportation” for life. Savarkar was imprisoned in the Cellular Jail in the Andaman Islands in 1910.
• The society was formally disbanded in 1952.

Vinayak Damodar Savarkar

He was known among followers by the honorific prefix Veer and also as Swatantrya Veer Savarkar, was an Indian politician, activist, and writer. He developed the Hindu nationalist political ideology of Hindutva while imprisoned at Ratnagiri in 1922. He was a leading figure in the Hindu Mahasabha. He and his brother founded a secret society called Abhinav Bharat Society. Savarkar was sentenced to two life terms of imprisonment totaling fifty years and was moved to the Kalapani cellular jail in the Andaman and Nicobar Islands.

Vishnu Ganesh Pingle

He was an Indian revolutionary and a member of the Ghadar Party. Pingle and a number of other Ghadarites including Kartar Singh Sarabha, Harnam Singh and Bhai Paramanand were tried in the Lahore Conspiracy trial in April 1915 by a special tribunal constituted under the Defence of India Act 1915, for their roles in the February plot.  Pingle was executed by hanging at the Lahore Central Jail on 16 November 1915, along with Kartar Singh

Vasudev Balwant Phadke (1845 –1883):

He was an Indian independence activist and revolutionary who sought India’s independence from the British Raj. With the help of the Koli, Bhil and Dhangar communities in the region, he formed a revolutionary group of the Ramoshi people. The group started an armed struggle to overthrow the British Raj, launching raids on rich English businessmen to obtain funds for the purpose. Phadke came to prominence when he got control of the city of Pune for a few days after catching British soldiers off-guard during one of a surprise attacks. Phadke was transported to jail at Aden, but escaped from the prison by taking the door off from its hinges on 13 February 1883. He was soon recaptured and then went on a hunger strike, dying on 17 February 1883.

LahujiVastaad or LahujiRaghoba Salve (1794-1881)

He was a Dalit activist, preacher and freedom fighter. He learnt wrestling from his father and he became an expert wrestler, which eventually conferred him the title of ‘Vastaad’ (or master). He owned a gymnasium at Ganj peth in Pune where he also taught martial arts to many renowned people and also acted as a mentor preaching the need for Indian freedom from British Raj and the upliftment of untouchables. Lahuji got acquainted with Jyotirao Phule’s work for the liberation of depressed classes by educating them and joined his Satyashodhak Samaj.

Anant Laxman Kanhere (1892 -1910)

He was an Indian independence fighter from Nashik. On 21 December 1909, he shot dead the Collector of Nashik in British India. The murder of Jackson was an important event in the history of Nashik and the Indian revolutionary movement in Maharashtra. He was prosecuted in Bombay court and hanged in the Thane Prison on 19 April 1910, aged just 18. 

Chapekar brothers – Damodar, Balakrishna and Vasudev

They were involved in the murder of W. C. Rand, the British plague commissioner of Pune. A Special Plague Committee was formed, under the chairmanship of Walter Charles Rand, an Indian Civil Services officer. Troops were brought in to deal with the emergency. The measures employed included entry into private houses, stripping and examination of occupants (including women) by British officers in public, evacuation to hospitals and segregation camps and preventing movement from the city. These measures were considered oppressive by the populace of Pune and complaints were ignored by Rand. On 22 June 1897, the Diamond Jubilee of the coronation of Queen Victoria, Rand and his military escort Lt. Ayerst were shot while returning from the celebrations at Government House. All three brothers were found guilty and hanged in 1899.

Bhikaiji Rustom Cama:

Bhikaiji Rustom Cama, also known as Madame Cama, was an independence activist and advocate for women’s rights who had the unique distinction of unfurling the first version of the Indian national flag—a tricolour of green, saffron, and red stripes at the International Socialist Congress held at Stuttgart, Germany, in 1907. She played a crucial role in the Indian freedom struggle abroad and was known as the Mother of the Indian Revolution.

9. Zydus Life chairman Pankaj R Patel named on RBI Central Board

Context: Zydus Life sciences chairman Pankaj R. Patel has been appointed as a part-time non-official director in the Central Board of the Reserve Bank of India (RBl)

Central Board of RBI:

• The Reserve Bank’s affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act.
• Appointed/nominated for a period of four years

Constitution:

• Official Directors
• Full-time : Governor and not more than four Deputy Governors
• Non-Official Directors
• Nominated by Government: ten Directors from various fields and two government Official
• Others: four Directors – one each from four local boards
• Functions : General superintendence and direction of the Bank’s affairs

Appointments Committee of the Cabinet (ACC):

• It decides appointments to several top posts under the Government of India
• The committee is composed of the Prime Minister of India (ex-officio Chairman) and the Minister of Home Affairs

10. Rationalize FDI approvals under PN3

Subject: Economy

Section: External Policy

Context:

Press Note 3, aimed at curbing predatory takeovers by foreign entities, needs to be reviewed in the current economic situation

What is FDI?

• Foreign direct investment (FDI) is when a company takes controlling ownership in a business entity in another country.
• With FDI, foreign companies are directly involved with day-to-day operations in the other country. This means they aren’t just bringing money with them, but also knowledge, skills and technology.

What is Press Note 3?

• Press-note 3 requires that all investments from entities, which are based in a land-bordering country, or when the beneficial owner of the investment is based in a land-bordering country (both referred as “restricted entities”), will have to be made under the ‘approval route’ and will require security-clearance.

Why it was introduced?

• It was brought during the initial days of the pandemic in April 2020 – and as an immediate reaction to the concerns of Indian companies being vulnerable to opportunistic takeovers during the pandemic.
• Therefore, they imposed restrictions on foreign investments which could be ‘predatory’ in nature and to ensure that assets in sensitive sectors do not end up in foreign hands, jeopardising national security.

Why need to rationalize now?

• India’s vaccination drive gathered steam and reasonable control over Covid cases was established, the economy improved as well
• During this period, the government also introduced several bold reform measures like opening up of travel and tourism, scrapping the controversial retrospective tax imposed in 2012 on transfer of Indian assets and infusing a new life into the earlier moribund telecom sector.
• Therefore, the present healthy trends may potentially ward off any attempts of ‘opportunistic takeovers’ as feared earlier.
• There is need to review PN3 to boost legitimate investments, particularly from sources like ‘pooled funds’
• Investments from restricted entities constituting less than 10 per cent (or even 5 per cent) of the economic interests of an Indian company, in non-strategic sectors, regardless of investment route, could be exempted from the prior approval requirement.
• Further investments into Indian companies where restricted entities are existing shareholders: It is well known that a number of start-up sectors (e-commerce, technology, social media, etc) in India have substantial amounts of Chinese investments.
• Need for greater transparency and expediency in the approval process: Another challenge in the context of PN3 has been the time taken for security clearance of the proposals.
• While the security risk posed by Chinese entities persists, there an urgent need for Indian entities to raise funds, particularly in the current geopolitical situation and more so in strategic sectors