Daily Prelims Notes 19 June 2023

Daily Prelims Notes

19 June 2023

Table Of Contents

1. Groundwater extraction has tilted Earth’s spin; how likely is it to fuel climate change?
2. An extrasolar radiation belt, a la Van Allen, seen for the first time
3. States look for alternatives as Centre restricts FCI purchase
4. The remarkable endurance of the Y chromosome, ‘master of maleness’
5. Responsibility and the complexities of climate leadership
6. China’s ‘developmental’ security approach
7. Black Sea grain deal
8. Paddy and the price of water
9. Right to change one’s name is part of the right to life
10. Invasive alien species attack on western ghats
11. PM Modi talks of Miyawaki forests in Mann ki Baat: What is this method, also being used in Mumbai
12. Letter of Comfort
13. SEBI actions to improve corporate governance and transparency
14. Urban cooperative banks see increase in their loan limit
15. India to use own carbon levy to counter EU’s CBAM
16. Reverse flipping
17. Biporjoy is part of a new trend in Indian cyclones

1. Groundwater extraction has tilted Earth’s spin; how likely is it to fuel climate change?

Subject: Geography

Section: Physical geography

Context:

• Humans have caused marked tilts in the Earth’s axis by pumping water out of the ground and moving it elsewhere, according to a new study.

Study findings:

• A 2021 study found that the direction of polar drift moved from southward to eastward in 1995 and that the average drift speed from 1995-2020 was 17 times quicker than from 1981-1995.
• Pronounced shifts in the Earth’s axis of rotation can impact our planet’s climate.
• Groundwater pumping has tilted the planet nearly 80 centimetres east between 1993 and 2010 alone.
  • The water circulated across the planet determines how mass is distributed.
  • Scientists had predicted that between 1993 and 2010, people pumped 2,150 gigatons of groundwater, or more than 6 millimetres (0.24 inches), of sea level increase.
  • However, it is difficult to validate that estimate.

Shift of Earth’s axis:

• In the past, the poles’ drift was only caused by natural forces like ocean currents and the convection of heated rock deep beneath the Earth.
• But the new research pitched the redistribution of groundwater as the primary culprit for the drift.
• Water’s role in altering the Earth’s rotation was discovered in 2016, and until now, the contribution of groundwater to drifts has been unexplored.
• The planet’s geographic north and south poles are where its axis intersects the surface; however, they are not fixed.
  • The axis and hence the poles fluctuate due to variations in the Earth’s mass distribution.
• Risk involves:
  • The rotational pole normally changes by several metres within about a year, so changes due to groundwater pumping don’t run the risk of shifting seasons.
  • But on geologic time scales, polar drift can have an impact on climate.
  • Redistributing water from the mid-latitudes significantly influences polar drift; therefore, the location of redistribution determines polar drift.
  • During the study period, most redistribution occurred in western North America and northwestern India — both located at mid-latitudes.

Earth’s Axis of Rotation:

• It is the line along which it spins around itself as it revolves around the Sun.
• Earth’s axial tilt (also known as the obliquity of the ecliptic) is about 23.5 degrees. Due to this axial tilt, the sun shines on different latitudes at different angles throughout the year. This causes the seasons.
• The points on which the axis intersects the planet’s surface are the geographical north and south poles.
• The location of the poles is not fixed. The axis moves due to changes in how the Earth’s mass is distributed around the planet. Thus, the poles move when the axis moves, and the movement is called “polar motion”.
• Generally, polar motion is caused by changes in the hydrosphere, atmosphere, oceans, or solid Earth. But now, climate change is adding to the degree with which the poles wander.
• According to NASA, data from the 20th century shows that the spin axis drifted about 10 centimetres per year. Meaning over a century, polar motion exceeds 10 metres.

2. An extrasolar radiation belt, a la Van Allen, seen for the first time

Subject :Science and technology

Section: Space technology

Context:

• Astronomers describe the first radiation belt observed outside the solar system, using a coordinated array of 39 radio dishes from Hawaii to Germany.

Details:

• The images are persistent, intense radio emissions from an ultracool dwarf star revealed the presence of a cloud of high-energy electrons trapped in the object’s powerful magnetic field, forming a double-lobed structure.

The Radiation belts:

• Strong magnetic fields form a “magnetic bubble” around a planet called a magnetosphere, which can trap and accelerate particles to near the speed of light.
• All the planets in the solar system that have such magnetic fields, including the earth and Jupiter, have radiation belts.
• The earth’s radiation belt, known as the Van Allen belts, are large doughnut-shaped zones of high-energy particles captured from solar winds by the magnetic fields.
• This extrasolar radiation belt would be 10 million times brighter than Jupiter’s.

Notable features of Van Allen Radiation Belts are:

• Most of the particles that form the belts are thought to come from solar wind and other particles by cosmic rays.
• By trapping the solar wind, the magnetic field deflects those energetic particles and protects the atmosphere from destruction.
• The belts are located in the inner region of Earth’s magnetosphere.
• The belts trap energetic electrons and protons.
•  Other nuclei, such as alpha particles, are less prevalent.
• The belts endanger satellites, which must have their sensitive components protected with adequate shielding if they spend significant time near that zone.

Magnetosphere:

• It is the region around a planet dominated by the planet’s magnetic field.
• Other planets in our solar system have magnetospheres, but Earth has the strongest one of all the rocky planets.
• The magnetosphere shields earth from solar and cosmic particle radiation, as well as erosion of the atmosphere by the solar wind – the constant flow of charged particles streaming off the sun.

Regions of the Earth’s Magnetosphere:

• Bow shock – It occurs when the magnetosphere of an Earth interacts with the nearby flowing ambient plasma such as the solar wind.
• Magneto sheath – It is the region of space between the magnetopause and the bow shock of a planet’s magnetosphere.
• Magnetopause – It is the boundary between the planet’s magnetic field and the solar wind.
• Magnetotail – The sun-facing side, or dayside, extends a distance of about six to 10 times the radius of the Earth.
  • The side of the magnetosphere facing away from the sun, the night side stretches out into an immense magneto tail, which fluctuates in length and its exact length is not known, this extension of the magnetosphere.
• Northern tail lobe – The magnetosphere of the earth contains two lobes, referred to as the northern and southern tail lobes. Magnetic field lines in the northern tail lobe point towards the earth.
• Southern tail lobe – The magnetic field lines in the southern tail lobes point away from the earth. Usually, the tail lobes are almost empty, with few charged particles opposing the flow of the solar wind.
• Plasma sphere – The plasma sphere, or inner magnetosphere, is a region of the Earth’s magnetosphere consisting of low energy (cool) plasma.
• Solar winds – It is a stream of charged particles released from the upper atmosphere of the Sun, called the corona.

3. States look for alternatives as Centre restricts FCI purchase

Subject : Schemes

Concept :

• The Union Government has recently discontinued the sale of wheat and rice under the Open Market Sale Scheme (OMSS) to state governments, except for some northeastern, hilly, and calamity-hit states.
• This decision will affect some states, such as Karnataka, that offer free grains to the poor under their schemes.

Details

• The Karnataka government had requested 13,819 tonnes of rice for July from the Food Corporation of India (FCI) under the OMSS without e-auction. But the FCI has rejected the request and informed the state that the sale of wheat and rice under the OMSS for state governments is discontinued.
• The FCI has said that it will continue to sell rice under the OMSS to private parties from the central pool stock as per the requirement to moderate the market prices.
• The discontinuation of the OMSS for state governments may have implications for food security and price stability in some regions.
• The states that depend on the OMSS for their welfare schemes may have to procure grains from other sources or reduce their coverage. The FCI may also face challenges in managing its surplus stocks and preventing wastage.

Open Market Sale Scheme (OMSS)

• The Open Market Sale Scheme (OMSS) is a government initiative in India aimed at reducing the excess stock of food grains held by the Food Corporation of India (FCI) and state agencies.
• The scheme allows the Food Corporation of India (FCI) to sell wheat and rice to bulk consumers, state governments, and private parties through e-auctions at predetermined prices.

Features of OMSS

• The FCI conducts weekly auctions through e-auctions in the open market to sell surplus stocks of wheat and rice.
• The reserve price of wheat and rice for sale under OMSS is fixed by the Department of Food and Public Distribution (DFPD) every year.
• The reserve price is kept uniform throughout the country without adding any further freight to facilitate buyers to lift stocks from any place at ease.
• The sale of wheat and rice under OMSS is undertaken throughout the year in the non-procuring states and during the non-procurement period in the procuring states.
• The quantum of wheat and rice for sale under OMSS is decided by the DFPD based on the availability and demand of food grains.
• The surplus procuring states (paddy/rice) are not allowed to participate in e-auction for the purchase of rice for their state schemes and they are advised to retain stocks under the state pool for their schemes.

4. The remarkable endurance of the Y chromosome, ‘master of maleness’

Subject : Science and technology

Section: Biotechnology

Concept :

• The Y chromosome, often referred to as the “master of maleness”, has long captivated scientists and historians alike.

Y chromosome

• In humans, in addition to the 22 pairs of chromosomes in each, we have a pair of sex chromosomes called X and Y.
• Sex as a specification is determined by these sex chromosomes. They carry sex-determining genes.
• All biological males have X and Y chromosomes and all biological females have two X chromosomes.
• The ‘sex-determining region Y’ on the Y chromosome determines the biological male sex.

‘Juvenile delinquent’

• Estimated to have emerged around 200-300 million years ago in a common ancestor of all mammals, the Y chromosome has had a unique genetic journey, and embedded within its DNA lies a remarkable tale of evolution.
• Scientists published the complete genetic sequence of the Y chromosome in 2003. This sequence provided an outline of 23 million bases of the 60 million or so bases that together make up the Y chromosome.
• In total, the chromosome encoded for only 55 genes and accounted for around 2% of the genetic material inside a cell.
• Many researchers jokingly refer to the Y chromosome as the “juvenile delinquent” among chromosomes pertaining to its abundance of repetitive sequences, poor functional utility (with a small number of genes), reluctance to socialise (i.e. recombine with other chromosomes), and a high proclivity to degenerate over the course of evolution.
• Indeed, because it has little potential to recombine, the diminutive Y chromosome has been passed from father to son, carrying the legacy of generations.

Vital genes

• In a landmark genetic study, published in March 2003 in the American Journal of Human Genetics, researchers reported that around 0.5% of all the men in the world have inherited a Y chromosome from the Mongol emperor Genghis Khan or one of his descendants.
• Y chromosome possesses genes that are vital to biological functions, including those linked to ageing and lifespan regulation.
• In the animal kingdom (including mammals), scientists have noticed substantial differences in lifespan between the sexes: the females tend to live longer than the males.
• This phenomenon has been attributed largely to the absence of a second Y chromosome in males, exposing the deleterious mutations in the X chromosome.
• It is also well known that men lose the Y chromosome with age and that this is associated with a higher frequency of cancers, Alzheimer’s disease, and a shorter lifespan.

Losing the Y

• Studies have shown that LoY in humans occurs with age and is associated with several debilitating medical conditions – a finding that has been validated in mice with LoY, resulting in weak heart muscles (cardiomyopathy), stretched or thickened heart tissue (fibrosis), and heart failure.
• researchers have also found that the pathological effects observed on account of LoY in mice’s hearts could be negated by transforming growth factor beta 1-neutralising antibodies, suggesting a potential treatment for this medical condition in future.
• The human Y chromosome is about one-third as big as the X chromosome. So, many animal species, including humans, have a genuine fear of losing the Y chromosome in the distant future.

5. Responsibility and the complexities of climate leadership

Subject: Environment

Section: International conventions

Concept :

• Over the last few weeks, there has been an increasingly vocal campaign to unseat the President-Designate of COP28, Minister Sultan Al Jaber of the host nation, the United Arab Emirates (UAE).

Background

• This includes a recent letter from United States and European parliamentarians calling for his removal on the grounds that he is CEO of the Abu Dhabi National Oil Company.
• As representatives of developing countries in the climate change front line, and as leaders of the Climate Vulnerable Forum, a group of 58 of the world’s most climate vulnerable countries hosting 1.5 billion of the world’s poorest people, we know only too well the urgency of the climate challenge.
• We have endured climate-related economic losses of $500 billion in the last two decades alone.

This is a journey of unity

• However, recognizing that this journey, towards a clean energy future, is one we must embark on together.
• Fossil fuel-dependent economies are critical to these efforts, and they clearly have a more difficult task defining their energy transition strategy.
• It is important to avoid division and  continue to engage the  fellow parties at COP28 and elsewhere on the best way forward for their economies and for the planet.
• Finance will be crucial for COP28.

Debt is a barrier

• Many of the nations are crippled by unsustainable debts, including debts which are becoming unpayable due to climate damages largely caused by emissions elsewhere.
• Rather than going one by one over the financial cliff, we urgently need a collective approach which recognises the debt problem and the barrier it now poses to clean energy investment and climate adaptation.
• Sovereign wealth funds and multilateral development banks (MDBs) could assist in de-risking restructured debts and insuring re-issued climate bonds,
• The UAE leadership for a clean energy target starting in 2025, transforming the Abu Dhabi National Oil Company into the Abu Dhabi Clean Energy and Grid Company by 2030, and towards global financial reform including of the International Monetary Fund.
• The Loss and Damage fund that was secured last year in Sharm El-Sheikh must not be just be another empty bank account, and fossil fuels-dependent economies can demonstrate their commitment to a shared future by making subscriptions to support funding for climate damages in the most vulnerable countries, well in advance of the COP.
• Holding COP28 in the UAE, and with Sultan Al-Jaber as COP President-Designate, may well be an opportunity to engage the fossil fuels industry to make some significant and quantifiable commitments to emissions cuts and climate action in general.

Climate Vulnerable Forum

• The Climate Vulnerable Forum is an international cooperation group of developing countries tackling global climate change.
• The CVF was founded by the Maldives government before the 2009 United Nations Climate Change Conference in Copenhagen, which sought to increase awareness of countries considered vulnerable.
• United Nations agencies collaborate in implementing activities linked to the CVF with the UNDP, the lead organization supporting the forum’s work.
• The CVF was formed to increase the accountability of industrialized nations for the consequences of global climate change.
• Afghanistan, Nepal and Bhutan are its members, whereas India is one of the observer states.

6. China’s ‘developmental’ security approach

Subject : International Relations

Section: Places in news

Concept :

• Recent instances of Chinese crackdown on U.S.-based firms as well as domestic firms dealing with overseas clients.

Rationale behind Chinese crackdown

• The U.S. in October 2022, increased its export controls which made it much more difficult for China to obtain and manufacture advanced computing chips and supercomputers.
• The recent actions by the Chinese authorities seem to be motivated by vengeance against the U.S. efforts to restrict Chinese tech advancements.
• By undertaking crackdown measures on American firms and by limiting their access to the vast domestic market, China aims to capitalise on the divergence that exists between the U.S. administration and the American business community over the former’s China policy.
• The Chinese crackdown on consultancy and due diligence firms is expected to have ripple effects across all overseas businesses operating in China as businesses depend on consultancy firms to navigate the regulatory framework which is often challenging, especially in a country like China where there is uncertainty in the regulatory framework.
• However, various other experts also believe that there exists a domestic component to these actions.

National security at the forefront in Chinese politics

• Chinese authorities have justified each of the recent crackdown actions with the help of national security concerns.
• Experts point out that the threat to security has now become a ubiquitous concern in all aspects of governance in China as the Chinese administration under the leadership of President Xi Jinping has repeatedly emphasised that “the idea of development cannot be isolated from that of security” and the need to balance development with security has been highlighted in multiple instances.
• This attempt by China to securitise its development has resulted in according greater significance to various non-traditional security issues.
• Among such non-traditional security issues, issues such as cybersecurity and data/information security have become the key cause for concern in China.
• This has become evident through the recent attempts to strengthen cybersecurity and counter-espionage laws.
• China recently amended its Counter-Espionage Law with an aim to widen the scope of espionage by treating all “documents, data, materials, and items relating to national security and interests,” at par with state secrets.
• These latest amendments also expand the definition of espionage to include cyberattacks against state organs or critical information infrastructure.
• The changes have also empowered authorities to seize data, electronic equipment, information on personal property, and even ban border crossing.
• The latest instances of crackdown also reflect the approach of “developmental security”.
• There is this belief among the Chinese administration that the foreign businesses operating in China are indulging in espionage activities and there exists a suspicion that due diligence as well as consultancy firms are using their networks to extract sensitive data under the garb of free exchange of information.

7. Black Sea grain deal

Subject : International Relations

Section: Places in news

Concept :

• President Vladimir Putin said this month that Russia was considering withdrawing from the Black Sea grain deal as he accused the West of cheating Moscow because it still faced obstacles getting its own agricultural goods to world markets.
• Putin said he would discuss the future of the grain deal with visiting African leaders.

About Black Sea Grain Initiative:

• It was set up to resume vital food and fertilizer exports from Ukraine to the rest of the world.
• It was brokered between Russia and Ukraine by the United Nations and Turkey.
• The Initiative allowed exports of grain, other foodstuffs, and fertilizer, including ammonia, to resume through a safe maritime humanitarian corridor from three key Ukrainian ports: Chornomorsk, Odesa, and Yuzhny/Pivdennyi, to the rest of the world.

Joint Coordination Centre (JCC):

• A JCC was established to monitor the implementation of the Initiative.
• JCC Centre is hosted in Istanbul and includes representatives from Russia, Türkiye, Ukraine, and the United Nations.
• The UN acts as the Secretariat for the Centre.

Procedure:

• Vessels wishing to participate in the Initiative will undergo inspection off Istanbul to ensure they are empty of cargo.
• They then sail through the maritime humanitarian corridor to Ukrainian ports to load.
• The corridor is monitored 24/7 to ensure the safe passage of vessels.
• Vessels on the return journey will also be inspected at the inspection area off Istanbul.

Russia’s Stand

• Putin said Russia only agreed to the deal for the sake of countries in Africa and Latin America but that only around 3.2-3.4% of the grain goes to the world’s poorest countries while 40% went to prosperous countries.
• According to U.N. data, around 3% of exports under the Black Sea deal has gone to low-income countries, while high income countries get around 44% and the rest to middle-income states.
• The United Nations has always said the deal was a commercial enterprise and not intended to be entirely humanitarian, but that it benefited poorer countries by helping lower food prices globally.
• Russia spelled out the demands it wants met in exchange for its continued cooperation in the grain deal: – Moscow wants the Russian Agricultural Bank (Rosselkhozbank) reconnected to the SWIFT payments system.

8. Paddy and the price of water

Subject : Environment

Section: Agriculture

Concept :

• Direct seeding of rice, instead of transplanting and flooding of fields, cuts down the massive water consumption of paddy

Direct Seeded Rice (DSR)

• Direct Seeded Rice(DSR), also known as the ‘broadcasting seed technique,’ is a water-saving method of sowing paddy.
• In this method, seeds are directly drilled into the fields. In contrast to the traditional water-intensive method of transplanting rice seedlings from a nursery to waterlogged fields, this method saves groundwater.
• There is no nursery preparation or transplantation involved in this method.
• Farmers have to only level their land and give one pre-sowing irrigation.

What are the Advantages of DSR?

• Require Less Number of Labours:
  • DSR can solve labour shortage problems because like the traditional method it does not require a paddy nursery and transplantation of 30 days old paddy nursery into the main puddled field.
• Avenues for Groundwater:
  • It offers avenues for ground water recharge as it prevents the development of hard crust just beneath the plough layer due to puddled transplanting.
  • It matures 7-10 days earlier than the puddle transplanted crop, therefore giving more time for management of paddy straw.
• Increase in Yield:
  • According to the results from research trials and farmers’ field survey, after this technique the yield is one to two quintals per acre higher than puddled transplanted rice.
• However, DSR also faces some challenges that limit its wide-scale adoption, such as:
  • Higher seed rates and risk of poor or non-uniform crop establishment.
  • Seeds exposed to birds and pests.
  • Weed management and higher risk of lodging.
  • Lack of suitable varieties and machinery for different agro-climatic conditions.
  • Lack of awareness and knowledge among farmers and extension workers.

Different methods of paddy cultivation

Broadcasting method

• This is the simplest and oldest method of paddy cultivation, where seeds are sown by hand over the prepared fields. This method is suitable for dry and less fertile areas, where labour is scarce and irrigation is limited.
• The advantages of this method are low cost, easy operation and less seed requirement.
• The disadvantages are low yield, poor quality, high weed infestation and difficulty in harvesting.

Drilling method

• This is a modified version of the broadcasting method, where seeds are sown in rows using a drill machine or a plough. This method is also suitable for dry and less fertile areas, where irrigation is limited.
• The advantages of this method are better seed distribution, higher germination rate, and easier weeding and harvesting.
• The disadvantages are higher cost, more labour requirements and more seed requirements.

Transplantation method

• This is the most popular and widely used method of paddy cultivation, where seedlings are raised in a nursery and then transplanted into the fields. This method is suitable for fertile and well-irrigated areas, where labour is abundant and rainfall is high.
• The advantages of this method are high yield, high quality, better weed control and pest management.
• The disadvantages are high cost, high labour requirement and high water requirement.

9. Right to change one’s name is part of the right to life

Subject : Polity

Section: Constitution

Concept :

• he right to change one’s name is a fundamental right guaranteed by Article 21 of the Indian Constitution, which guarantees the right to life and personal liberty.
• Recently, two Indian High Courts confirmed this privilege, allowing persons to change their names on educational diplomas.

Details

• The right to change one’s name is a fundamental right that is protected by the Constitution of India under Article 21, which guarantees the right to life and personal liberty.
• This right is not only about the freedom to choose one’s identity but also about the dignity and self-respect of an individual.
• Recently, two High Courts of India have upheld this right and allowed people to change their names on their educational certificates.

Observations by the HCs

• Allahabad HC :
• The court observed that the right to keep or change one’s name is vested in every citizen under Articles 19(1)(a), 21, and 14.
• Delhi HC :
• The court noted that the right to identity is an “intrinsic part” of the right to life under Article 21 and that it includes the right to have one’s name or surname as per one’s choice.

Right to Change Name

• The right to change one’s name is recognized as a fundamental right under Article 21 of the Constitution, which guarantees the right to life and personal liberty.
• It is often exercised for various reasons, including personal preferences, religious conversions, marriage or divorce, or to overcome social or cultural barriers.
• Individuals may choose to change their names to reflect their gender identity, religious beliefs, or to align with their professional or artistic pursuits.

Process to change the name

• Prepare a petition stating the desire to change the name and reasons for the change.
• Prepare an affidavit affirming the intention to change the name and get it notarized.
• Publish a notice in two local newspapers announcing the name change.
• Apply for Gazette notification through the Department of Publication.
• Gather supporting documents like identity and address proof.
• File the petition, affidavit, and supporting documents in the appropriate court.
• Attend the court hearing and provide necessary explanations.
• Obtain a court order approving the name change.
• Update official documents with the new name.

Restrictions on the Right to Change Names

• Although the right to change names is a fundamental right, it is subject to reasonable restrictions.
• Restrictions imposed by law must be fair, just, and reasonable.

Principle of proportionality and the value of human dignity play important roles in determining the reasonableness of restrictions (Jeeja Ghosh vs. Union of India, 2016).

10. Invasive alien species attack on western ghats

Subject : Environment

Section: Ecosystem

Context:

• The Western Ghats are feeling the impact of a new invasion: by plants that are not native to the region and which threaten to alter natural habitats and native biodiversity.

Invasive Alien Species (IAS):

• When animals, plants, or other organisms are introduced in areas outside their natural range, they might eventually turn into invasive alien species, degrading natural habitats and affecting native biodiversity.
• According to the International Partnership for Biodiversity and Ecosystem Services, biotic invaders threaten around one-fifth of the earth’s surface.
• A 2020 study showed that Lantana camara, a tropical American shrub, has invaded more than 40 per cent of India’s tiger habitats, threatening them through a causal chain that ultimately depletes the tiger’s prey base.
• The shrub’s presence was most prominent in the Shivalik hills, central India, and the southern Western Ghats.
• It is among the world’s 10 worst invasive species and one of high concern in India.
• They have certain common features like the ability to reproduce quickly, the lack of natural predators, the capacity to outcompete local species for food, water, and habitat -which ensure that they flourish wherever they go.
• Though the impact of invasive species is well known across the world, efforts to manage them are usually minimal in undeveloped and developing countries.
• In India, so far nearly 1,600 invasive plant species have been introduced, and the number is likely to rise further.
• Another alien species is Senna Spectabilis, called Manja Konna or Golden Wonder, in the Western Ghats.
  • It is an exotic tree and it was introduced as an ornamental species and for use as firewood from South and Central America.
  • It has become highly invasive in the Sigur plateau in both the core and buffer zones of the Mudumalai Tiger Reserve.
  • Over the last few years, its bright yellow flowers have become more visible across the Tiger Reserve, with conservationists stating that the invasive weed has a negative effect on local biodiversity, crowding out native species and limiting food availability for wildlife.
• Impact on biodiversity:
  • Native food sources below these invasive trees’ canopy get destroyed, impacting the survival of herbivores and dependent carnivores.
  • The resulting reduction of foraging grounds pushes wildlife beyond the boundaries of protected areas, leading to negative interactions with humans.
  • Eucalyptus plantation along the riverbanks and swamps has affected the wild ginger, turmeric, tubers and all medicinal plants which were common in the forest.
• Removal of these invasive species:
  • Proper girding, or ring-barking (removal of bark from around the circumference of a tree to disrupt the movement of water and nutrients between the roots and the top), of adult trees during peak summer is one of the best methods to kill the trees.

Initiative taken:

• PARDESI programme:
  • Scientists from Ashoka Trust for Research in Ecology and the Environment (ATREE), in collaboration with the Keystone Foundation and World Wildlife Fund (WWF), have started an initiative to study the distribution patterns of invasive species in the Nilgiris Biosphere Reserve (NBR).
  • This regional endeavour, titled the Participatory Assessment of the Regional Distribution of Exotic Species in India (PARDESI) programme, aims to engage citizens, who can utilise the Open Data Kit Collect application on their smartphones, to identify and map invasive species.

A comprehensive list of 89 invasive plant species from the Moyar-Bhavani Landscape of the NBR has already been compiled.

11. PM Modi talks of Miyawaki forests in Mann ki Baat: What is this method, also being used in Mumbai

Subject : Environment

Section: Ecosystem

Context:

• Prime Minister Narendra Modi during his latest ‘Mann ki baat’ episode spoke about Miyawaki plantation, the Japanese method of creating dense urban forests in a small area.

Details:

• The largest Miyawaki forest under this project was created at Chandivali’s Nahar Amrut Shakti Udyan, wherein over 41,000 plants were planted over 13 acres.

Miyawaki plantation method:

• Named after Japanese botanist Akira Miyawaki, this method involves planting two to four different types of indigenous trees within every square metre.
• In this method, the trees become self-sustaining and they grow to their full length within three years.
• The methodology was developed in the 1970s, with the basic objective to densify green cover within a small parcel of land.
• The plants used in the Miyawaki method are mostly self-sustaining and don’t require regular maintenance like manuring and watering.
• Over the years, this cost-effective method has become the go-to solution for the civic body to restore the green cover in space-starved city like Mumbai and Hyderabad.
• Advantages of Miyawaki forests:
  • Some of the common indigenous plants that are used for these forests include Anjan, Amala, Bel, Arjun and Gunj.
  • Attracts the local bird species.
  • The dense green cover of indigenous trees plays a key role in absorbing the dust particles of the area where the garden has been set up.
  • Regulates the surface temperature.
• Disadvantages include:
  • These forests are not able to attract clouds and rain.
  • Plants grown under these forests do not evolve medicinal properties.
  • The forest is not as diverse as the naturally grown forest.
  • Flora and fauna diversity is low compared to the natural forest.
  • Unable to sustain the keystone species like elephants and tigers.

12. Letter of Comfort

Subject : Economy

Section: Monetary policy

Context: SEBI notes wrongful issuance of LoC by Subhash Chandra and Puneet Goenka

Key Points:

• What is a LoC:
  • A letter of comfort (also called letter of intent) is a financial document, indicating a willingness of a third party to meet its financial obligations of the borrowing party. This enhances the credit worthiness of the borrowing entity.
  • It is generally given by an entity (corporation) for its subsidiary.
  • It is considered a quasi bank guarantee instrument.The letter of comfort does not impose any legal obligations on the holding company to repay the loans.
  • It only serves as a reassurance to the lender, indicating that the holding company is aware of the transaction, familiar with the subsidiary’s policies, and has genuine intentions in seeking a loan.
  • This helps instill confidence in the financial institution to provide funding for both short-term and long-term purposes.
  • The letter of comfort may be seen as a moral commitment rather than a legally binding agreement.
• The Zee case:
  • Subhas Chandra as the chairman of ZEEL/Essel Group and Goenka as MD of ZEE, had issued a LoC (against Fixed Deposits worth Rs. 200 crore of ZEEL) towards credit facilities availed by certain group companies that were operated by family members.
  • When the payments due of the companies were not made, YES Bank adjusted the FDs, used for LoC.
  • SEBI has barred both from holding the position of director or key management personnel in any listed firm until further orders.
• Other measure taken in last few years:
  • In the aftermath of the PNB scam involving Neerav Modi and Mehul Chosi, RBI in 2018 barred all commercial banks from issuing quasi bank guarantee instruments such as the Letter of Undertaking (LoU) and Letter of Comfort (LoC)
  • RBI in 2022 barred the Credit Rating Agencies from using LoC as a factor in giving credit rating. This was done in view of the non legality of the LoC as a binding agreement.
  • In 2023 Finance Ministry has asked all CPSUs to issue letters of comfort (LoCs) on the basis of their own financial strength so that no liability devolves on the Government of India
  • Finance ministry in 2022 had permitted state-owned NBFCs to issue ‘Letter of Comfort (LOC)’ to banks for fund tie-up for infra projects.

13. SEBI actions to improve corporate governance and transparency

Subject : Economy

Section: capital market 

All listed firms asked to fill key managerial positions (KMP)

• Mar­ket reg­u­lator SEBI has intro­duced a stricter timeline of three months for lis­ted com­pan­ies to fill up vacan­cies relat­ing to their key mana­gerial per­son­nel (KMPs) such as CEO, CFO, MD, who­le­time dir­ector, man­ager and com­pli­ance officer.
• An amend­ment to this effect has been made in the SEBI’s List­ing Oblig­a­tions and Dis­clos­ure Require­ments (LODR) reg­u­la­tions.
• A stricter timeline is being intro­duced to ensure smooth func­tion­ing of lis­ted com­pan­ies, SEBI has said.
  • The latest timeline of three months for lis­ted entit­ies is stricter than the six months win­dow cur­rently provided under the Com­pan­ies Act 2013 for filling the vacan­cies of KMPs.
• Under LODR reg­u­la­tions, one of the key func­tions of the board of dir­ect­ors of a lis­ted entity is to over­see suc­ces­sion plan­ning of KMP and requires the board of dir­ect­ors of the lis­ted entity to ensure that the vacan­cies of such per­son­nel are filled up in a timely man­ner.
• The llis­ted com­pan­ies can­not fill vacan­cies of KMPs by appoint­ing a per­son in an “interim capa­city”.

 Certain shareholders enjoying special rights perpetually:

• To strengthen corporate governance at listed entities, SEBI came out with a framework to address the issue of certain shareholders enjoying special rights perpetually.
• Aim is to address the concerns around the grant of board permanency by listed entities to certain selected persons — mostly promoter-directors or related persons using rights specified in the Article of Association (AoA) of a company.
• Such measures take them out of ambit of retirement-by-rotation which stipulates ⅓ of border to retire at every Annual General Body Meeting (AGM).
• Now all directors appointed to the board of a listed entity need to go through a periodic shareholders’ approval process, thereby providing legitimacy for the director to continue to serve on the board.

Disclosure Rules: companies to confirm or deny market rumour

• Under the disclosure requirements for listed companies, SEBI has notified rules asking the top 100 listed companies by market capitalisation to confirm, deny or clarify any market rumour reported in the mainstream media.
• This is an important measure to help stop price manipulation and bring more transparency in the market.

14. Urban cooperative banks see increase in their loan limit

Subject :Economy

Section: Monetary Policy 

Key Points:

• RBI has decided to increased the existing limits on individual housing loans provided by cooperative banks, taking into account the rise in housing prices since the limits were last revised and considering customers’ needs for larger loans
• The limits for tier 1/tier 2 urban cooperative banks (UCBs) stood revised from ₹30 lakh/ ₹70 lakh to ₹60 lakh/ ₹140 lakh, respectively
• Rural cooperative banks (RCBs), have their limits increased from ₹20 lakh to ₹50 lakh for RCBs with assessed net worth less than ₹100 crore; and from ₹30 lakh to ₹75 lakh for the rest.
• RBI has also permitted rural cooperative banks (RCB) to finance residential real estate projects to support affordable housing and inclusive growth.
• RBI has decided to allow RCBs, state cooperative banks (StCBs) and district central cooperative banks (DCCBs) to extend finance to commercial real estate – residential housing (CRE-RH) within the existing aggregate housing finance limit of 5% of their total assets.

• Co-operative Banks, which are distinct from commercial banks, were born out of the concept of co-operative credit societies where members from a community group together to extend loans to each other, at favourable terms.
• Co-operative Banks are broadly classified into Urban and Rural co-operative banks based on their region of operation.
• Like other banks, the cooperative banks are founded by collecting funds through shares, accept deposits and grant loans.
• The history of Indian cooperative banking started with the passing of Cooperative Societies Act in 1904.
• A Co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank.
• Co-operative banks in India are registered under the States Cooperative Societies Act.
• The Co-operative banks are also regulated by the Reserve Bank of India (RBI) and governed by the
  • Banking Regulations Act 1949
  • Banking Laws (Co-operative Societies) Act, 1955.
• Democratic Member Control – democratically elect a board of directors. Members usually have equal voting rights, according to the cooperative principle of “one person, one vote”.
• Urban Co-operative Banks (aka Primary Cooperative Banks) are regulated and supervised by State Registrars of Co-operative Societies (RCS) in case of single-State co-operative banks and Central Registrar of Co-operative Societies (CRCS) in case of multi-State co-operative banks and by the RBI.
• The banking related functions such as issue of license to start new banks/branches, matters relating to interest rates, loan policies, investments and prudential exposure norms are regulated and supervised by the Reserve Bank under the provisions of the Banking Regulation Act, 1949.
  • Reserve Bank of India is both the controlling and inspecting authority for the Primary Cooperative Banks.
• NABARD provides refinance support and takes care of inspection of StCBs and DCCBs.

Difference between UCBs and Commercial Banks

• Regulation: Unlike commercial banks, UCBs are only partly regulated by the RBI. Their banking operations are regulated by the RBI, which lays down their capital adequacy, risk control and lending norms. However, their management and resolution in the case of distress is regulated by the Registrar of Co-operative Societies either under the State or Central government.
• Borrower can be a Shareholder: In general for a commercial bank, there is a clear distinction between its shareholders and its borrowers whereas in a UCB, borrowers can even double up as shareholders.

All-inclusive directions (AID)

• The committee, headed by NS Vishwanathan, a former Deputy Governor of the RBI, emphasised that all-inclusive directions (AID) should be treated on a par with moratorium under Section 45 of the Banking Regulation Act.
• If AID is imposed, a bank should not continue thereunder beyond the time permitted to keep a bank under moratorium — three months extendable by a maximum of another three months.
• Some UCBs (about 50 UCBs) have been under AID for many years.

A Stage III UCB is one where its capital to risk-weighted assets ratio/ CRAR is less than 4.5 per cent and/or net non-performing assets/NNPAs is greater than 12 per cent.

15. India to use own carbon levy to counter EU’s CBAM

Subject :Environment

Section: Climate change

Key Points:

• India is likely to set up a framework for carbon border tax to counter the European Union (EU)’s carbon border adjustment mechanism (CBAM).
  • India is focusing on developing its own carbon pricing system and pushing for its recognition globally so as to avoid a default value put on Indian exports. The Energy Conservation (Amendment) Act, 2022, passed by Parliament last year, seeks to empower the central government to specify a carbon credit trading scheme.
  • Finance and commerce ministries are discussing the basics of such a mechanism, particularly about measuring the carbon content in products imported from Europe.
• The EU’s carbon border adjustment mechanism (CBAM) is just a customs duty by another name. On similar lines India is also free to impose a tax on imports taking into account historic carbon emissions by them.
• Similar legislation is increasingly being considered by several developed nations such as Japan, the UK and the US.
• Arguments against CBAM:
  • CBAM can be seen as a “non-tariff barrier”, which is illegal according to WTO, unlike ‘non-tariff measures such as anti-dumping action, which are seen as barriers but are allowed by WTO.
  • CBAM breaches the basic principle of international environmental law of common but differentiated responsibilities (CBDR) that suggests that all states are responsible for addressing global environmental destruction, but they are not equally responsible and that there is a need to recognize the wide differences in levels of economic development between states and their contribution in battling climate change.
  • The linking of environment and trade has the potential to distort global trade, and it implies that certain countries are pollution havens based on one entity’s domestic standards and legislation. Also, World Trade Organization (WTO) rules do not explicitly link the environment with global trade.

16. Reverse flipping

Subject :Economy

Key Points:

• Indian startups that had headquartered their companies overseas in places like Mauritius and Singapore are now considering bringing them back (i.e. Reverse Flipping) to India.
• Some of the reasons for this trend are:
  • Successful local listing by Tech unicorns like Zomato, Paytm, and Nykaa.
  • Companies in Fintec
  • Recent relaxations in the round-tripping rules by the Reserve Bank of India (RBI) and the government’s policy support for startups are also encouraging the shift.
• Challenges to flipping:
  • Taxation issues: Change of legal jurisdiction, creates a taxable event for its shareholders, which can be a complex task. The new jurisdiction may have different tax laws compared to the previous one, leading to potential tax implications for shareholders in both international and Indian contexts. It can also lead to loss of accumulated tax benefits in the foreign jurisdiction
  • Funding challenge: Reverse flipping might pose challenges for the company in attracting foreign investors and accessing international capital markets in the future. Since foreign investors may still be less familiar with the structures and regulations of India-based companies, the investment process may be slower, ultimately creating obstacles.

17. Biporjoy is part of a new trend in Indian cyclones

Subject :Geography

Section: Physical geography (Climatology)

Context:

• The cyclonic disturbances over the North Indian Ocean, which includes the Arabian Sea, the Bay of Bengal and the land area in between, have gone through many significant changes in recent decades.

Details:

• The number of cyclonic disturbances in the North Indian Ocean has declined considerably over the past four decades.
  • This decline was mostly due to a rapid decrease in the number of cyclonic disturbances originating from the Bay of Bengal, the source of most past cyclones to have made landfall in southeast and west Asia.
  • In contrast, the number of such disturbances originating from the Arabian Sea has been steadily increasing in recent years, though the count is still relatively low.
• While the frequency of disturbances has decreased, the intensity of cyclones has increased in recent decades.

Why is frequency increasing in Arabian sea?

• Cyclone Kyarr and Maha in 2019 were extremely severe on the western coast.
• Increased carbon emissions have led to the warming up of Arabian Sea waters.
• The more enclosed nature of the sea is promoting more evaporation and cloud formation activities.
• Anthropogenic emissions of aerosols have increased six-fold since the 1930s, leading to a weakening of the southwesterly lower-level and easterly upper-level winds that define the monsoonal circulation over the Arabian Sea.
• Indian Ocean Dipole which is an irregular natural oscillation of Sea Surface Temperatures (SSTs) in which the western Indian Ocean becomes alternately warmer and then colder than the eastern part of the ocean-strongest IOD in 60 years.
• The increase in the frequency of cyclones over the Arabian Sea has not posed a corresponding increase in the coastal vulnerability along the west coast since most of such cyclones forming over the Arabian Sea were making landfall over the coasts of Oman, Yemen etc. and hence the threat to Gujarat & Maharashtra coasts remains same.