Daily Prelims Notes 2 February 2023

Daily Prelims Notes

2 February 2023

Table Of Contents

1. Electronic Gold Receipts
2. Capital expenditure
3. Inclusive growth
4. Mangrove Initiative for Shoreline Habitats & Tangible Incomes
5. Decentralised storage capacity
6. Natural Farming
7. Regenerative agriculture
8. Biodynamic farming
9. Agroecology or Agroecological farming
10. Bid to end tax anomaly between biogas, natural gas to promote green fuel
11. Economy transitioning to net-zero will require chemical solutions
12. Remittances high, low tax payment
13. Accelerator fund for agri-startups
14. US destroyed arms control pact – New start treaty
15. Vibration failure led to failure of SSLV – D1
16. PAN to be used as common identifier for digital systems
17. Funds for minority scheme slashed by 38 percent
18. Vehicle scrapping policy
19. Mahila Samman Saving Certificate
20. Judicial majoritarianism
21. New policy of UPI for NRI
22. Zero tax for annual income up to 7 lakhs under new scheme – Tax slab
23. FM moots national digital library

1. Electronic Gold Receipts

Subject :Economy

Section: Fiscal Policy

Context: No capital gains on conversions between physical gold and EGR: Budget 2023.

More on the News

• Electronic Gold Receipts (EGRs) were launched by BSE last October. EGRs are digital receipts of gold issued against the amount of physical gold lying with vault providers.
• There was a grey area with respect to capital gains when one converted his/her physical gold to EGRs.
• In the Union Budget 2023-24, it is clarified that there will not be any capital gain tax when physical gold is converted to EGR and vice-versa effective April 1, 2024. While other charges like brokerage, GST are not exempt.
• The advantage is that, for calculating the holding period, date and purchase price of your physical gold will be considered and not the date when it was converted to EGR. So, the total holding period would be the time held in physical form plus the time held it as EGR.
• So, basically, have to pay tax only on encashment whereas there will be no tax liability if you continue to hold gold in one form or the other.

Electronic Gold Receipts

• EGRs are digital receipts of gold issued against the amount of physical gold lying with vault providers.
• These receipts are issued by the vault managers and will be in accordance with SEBI (Securities and Exchange Board of India) regulations.
• They can be bought and sold like stocks through exchanges.
• EGRs allow people to invest in gold from a very small amount and also provide the option of taking delivery.
• One can also convert their physical gold into EGRs through a registered vault member.
• Under this form of gold, the trading exchange holds the underlying value of the receipt in physical gold in a vault.
• That means investors buy the gold in dematerialised form and are given gold receipts instead of physical gold. The process is similar to the physical form of equity shares.

Capital Gains Tax

• Under the Income Tax Act, gains from the sale of capital assets, both movable and immovable, are subject to ‘capital gains tax’. It covers real estate, gold, stocks, mutual funds, and various other financial and non-financial assets.
• According to the Income Tax Act, if a person inherits property and does not sell it, no capital gains tax is required. However, if the person who inherited the property decides to sell it, he or she will have to pay tax on the earnings.
• Exclusions: The following items are not considered capital assets:
  • Any stock, consumables, or raw materials stored for business or profession.
  • Personal items held for personal use, such as clothing and furniture
  • Agricultural land in India’s rural areas
  • The central government’s 6½% per cent gold bonds (1977) or 7 per cent gold bonds (1980) or national defence gold bonds (1980).
  • Special bearer bonds (1991)
  • A gold deposit bond or deposit certificate issued under the Gold Deposit Scheme (1999) or the Gold Monetisation Scheme (2015).
• Types:
  • Short-term capital gains tax
• Normally if an asset is held for less than 36 months, any gain arising from selling it is treated as a short-term capital gain (STCG).
• The term for immovable assets, such as real estate, buildings, and land, has been decreased from 36 to 24 months.
• Long-term capital gains tax
  • If the asset is held for 36 months or more. However, Shares and equity mutual funds with a holding period of 12 months or more qualify as ‘long-term’.
  • Current tax laws state LTCG arising on the sale of listed equity shares or equity oriented mutual funds are exempt from tax if one pays Securities Transaction Tax (STT) on the sale transaction.
  • Any of the assets listed below are considered long-term investments if you own them for more than a year:
    • Zero-Coupon Bonds (not dependent on whether they are quoted or not)
    • Units of the Unit Trust of India (UTI) (not dependent on whether they are quoted or not)
    • Units of equity-based mutual funds (not dependent on whether they are quoted or not)
    • Securities that are listed on a recognised Indian stock market. Government securities, bonds, and debentures are examples of such securities.
    • Preference shares or stocks held in a corporation that is listed on a recognised stock exchange in India.

2. Capital expenditure

Subject : Economy

Section : Fiscal Policy

Context : Continuing with the template of the last couple of years, the Budget is big on capital expenditure which is up by a whopping 37 per cent at ₹10­lakh crore, accounting for 3.3 per cent of GDP

Concept –

• The central theme of the Budget 2022-23 was investment in infrastructure, and development.
• Sitharaman announced capital expenditure at ₹7.5-lakh crore. That’s about 2.9 per cent of GDP.
• Together with grant-in-aid to States, the effective capital expenditure for 2022-23 is projected to be about 4.1 per cent of GDP. The nominal GDP growth assumption of

What is Capital Expenditure-?

• Capital expenditure (Capex) is the money spent by the government on the development of machinery, equipment, building, health facilities, education, etc.
• Capital expenditure includes money spent on the following:
  • Acquiring fixed and intangible assets
  • Upgrading an existing asset
  • Repairing an existing asset
  • Repayment of loan

What is the significance of capital expenditure?

• Multiplier effect – Capex has the maximum multiplier effect (change in rupee value of output with respect to a change in rupee value of expenditure). This multiplier effect works through expansion of ancillary industries and services and job creation.
• Labour productivity – On the supply side, Capex can facilitate labour productivity.
• Macroeconomic stabilizer– Capital expenditure is an effective tool for countercyclical fiscal policy and acts as a macroeconomic stabiliser.
• Revenue generation – Capital expenditure leads to the creation of assets are long-term in nature and allow the economy to generate revenue for many years and boost operational efficiency.
• Liability reduction – Along with the creation of assets, repayment of loan is also capital expenditure as it reduces liability.
• Economic growth – Government capex catalyses private investment, increases production capacity thereby speeding up economic growth which in turn creates a lot more jobs.
• Crowding-in of investment: It is a phenomenon that occurs when higher government spending leads to an increase in economic growth and therefore encourages firms to invest due to the presence of more profitable investment opportunities. The crowding-in effect is observed when there is an increase in private investment due to increased public investment, for example, through the construction or improvement of physical infrastructures such as roads, highways, water and sanitation, ports, airports, railways, etc.

What is the status of Government spending on capital expenditure?

• The outlay for capital expenditure in the Union Budget is being stepped up sharply by 35.4 per cent from Rs 5.54 lakh crore in the current year to Rs 7.50 lakh crore in 2022-23.
• The States cumulatively spend more on capex than the Centre.
• But, the money spent by states is not uniform throughout the year but is bunched up and spent in the last quarter of the fiscal.
• Both the Centre and the States should also focus on the quality of capex.

It is necessary if India has to escape its current moderate pace of economic expansion and post strong double digit GDP growth in a sustained manner in the future.

3. Inclusive growth

Subject :Economy

Section: National income

Context: Budget 2023­24 is a bold step towards envisioning a prosperous and inclusive India

• Inclusive growth means economic growth that creates employment opportunities and helps in reducing poverty.
• It means having access to essential services in health and education by the poor. It includes providing equality of opportunity, empowering people through education and skill development.
• It also encompasses a growth process that is environment friendly growth, aims for good governance and helps in creation of a gender sensitive society.
• As per OECD (Organisation for Economic Co-operation and Development), inclusive growth is economic growth that is distributed fairly across society and creates opportunities for all.

Components of Economic Growth-

4. Mangrove Initiative for Shoreline Habitats & Tangible Incomes

Subject :Environment

Section: Ecosystem

Context: The Government announced a new scheme — ‘Mangrove Initiative for Shoreline Habitats & Tangible Incomes’ (MISHTI) in the Union Budget under which plantation along the coastline will be taken up for which funds from Mahatma Gandhi National Rural Employment Scheme (MGNREGS) will also be utilised.

More on the News

• Building on India’s success in afforestation, MISHTI will be taken up for mangrove plantation along the coastline and on salt pan lands, wherever feasible, through convergence between MGNREGS, CAMPA Fund, and other sources.
• The MISHTI comes after India joined the Mangrove Alliance for Climate launched during the 27th Conference of Parties (COP27) to the United Nations Framework Convention on Climate Change held in Egypt in November 2022.
• MISHTI could potentially attract private resources and carbon and biodiversity offsets.

Mangroves

• Mangroves cover only about 0.1 per cent of the planet’s surface. Yet, they can potentially store up to 10 times more carbon per hectare (ha) than terrestrial forests.
• In India, the total mangrove cover is 4,992 square kilometres, according to the 2021

Forest Survey Report (FSR).

• These plantations can protect coastal communities by acting as a natural barrier against storm surges, cyclonic activity.
• Mangroves are important nursery and breeding grounds for fish. Restoration projects worldwide can potentially lure the carbon offset market, which facilitates increased carbon credits trading.
• Threats: human activities such as the building of roads, railways and infrastructure projects, as well as shifting coastlines, coastal erosion and an increase in storms due to extreme weather events have all taken a toll on them.

5. Decentralised storage capacity

Subject: Economy

Section: Msc

Context: India will have world’s largest decentralised storage capacity: Union Cooperation Minister.

More on the News:

• With the Budget announcement to set up decentralised storage capacity, Union Cooperation Minister said India will have the world’s largest decentralised storage capacity by the cooperative sector which will help farmers store their produce and sell at the right time to get a fair price.
• This will play an important role in to increase the income of farmers.
• In the next five years, the government will facilitate the establishment of new multipurpose cooperative societies, primary fisheries societies and dairy cooperative societies in every panchayat.
• FM announced a higher limit of ₹2 lakh per member for cash deposits and loans in cash by Primary Agricultural Co-operative Societies (PACS) and Primary Co-operative Agriculture and Rural Development Banks (PCARDBs).
• New cooperative societies formed on or after April 2023, which commence manufacturing or production by March 2024 and do not avail of any specified incentive or deduction, are proposed to be allowed an option to pay tax at a concessional rate of 15 per cent similar to what is available to new manufacturing companies.
• Sections 269SS and 269T of the Companies Act will be amended to ensure there is no penalty for cash loan/transactions against primary co-operatives in cash less than ₹2 lakh.
• It is proposed to enable co-operatives to withdraw cash up to ₹3 crore in a year without being subjected to TDS on such withdrawal.

About Cooperatives refer: https://optimizeias.com/co-operatives/

6. Natural Farming

Subject :Environment

Section :Agriculture

Context: Natural farming gets a push with focus on assured input supplies : Budget 2023.

More on the News:

• Over the next three years the government will facilitate one crore farmers to adopt natural farming for which Finance Minister unveiled a detailed plan, starting from increasing production of bio-fertilisers and bio-pesticides, the major inputs required to prevent any drop in yield, as well as a distribution network to ensure their availability.
• The scheme announced by the government could be helpful for those farmers in raising productivity of crops as well as those who want to shift from chemical farming.
• Focus on regenerative farming will help India move towards reduction in carbon emissions from agriculture. The focus on integrated nutrient management aligns well with the overall vision of sustainability.

Natural Farming

• It can be defined as a “chemical- free farming and livestock based ”. Soundly grounded in agro-ecology, it is a diversified farming system that integrates crops, trees and livestock, allowing the optimum use of functional biodiversity.
• It holds the promise of enhancing farmers’ income while delivering many other benefits, such as restoration of soil fertility and environmental health, and mitigating and/or reducing greenhouse gas emissions.
• This farming approach was introduced by Masanobu Fukuoka, a Japanese farmer and philosopher, in his 1975 book The One-Straw Revolution.
• It builds on natural or ecological processes that exist in or around farms. Internationally, Natural Farming is considered a form of regenerative agriculture—a prominent strategy to save the planet.
• It has the potential to manage land practices and sequester carbon from the atmosphere in soils and plants, where it is actually useful instead of being detrimental.
• In India, Natural farming is promoted as Bhartiya Prakritik Krishi Paddhati Programme (BPKP) under Paramparagat Krishi Vikas Yojana (PKVY).
• BPKP is aimed at promoting traditional indigenous practices which reduce externally purchased inputs.
• Natural Farming, as the name suggests, is the art, practice and, increasingly, the science of working with nature to achieve much more with less.

7. Regenerative agriculture

Subject :Environment

• Regenerative agriculture is a system of farming principles and practices that seeks to rehabilitate and enhance the entire ecosystem of the farm by placing a heavy premium on soil health with attention also paid to water management, fertilizer use, and more.
• It is a method of farming that improves the resources it uses, rather than destroying or depleting them.

Benefits:

• Regenerative agriculture practices increase soil biodiversity and organic matter, leading to more resilient soils that can better withstand climate change impacts like flooding and drought.
• Healthy soils lead to strong yields and nutrient-rich crops.
• It also diminishes erosion and runoff, leading to improved water quality on and off the farm.
• Importantly, regenerative agriculture practices also help fight the climate crisis by pulling carbon from the atmosphere and sequestering it in the ground.

8. Biodynamic farming

Subject :Environment

Section :Agriculture

• Biodynamic agriculture is a form of alternative agriculture based on pseudo-scientific and esoteric concepts initially developed in 1924 by Rudolf Steiner (1861–1925).
• It was the first of the organic farming movements.
• It treats soil fertility, plant growth, and livestock care as ecologically interrelated tasks, emphasizing spiritual and mystical perspectives.
• It emphasizes the use of manures and composts and excludes the use of synthetic (artificial) fertilizers, pesticides and herbicides on soil and plants.
• Methods unique to the biodynamic approach include its treatment of animals, crops, and soil as a single system, an emphasis from its beginnings on local production and distribution systems, its use of traditional and development of new local breeds and varieties.
• Some methods use an astrological sowing and planting calendar.
• Biodynamic agriculture uses various herbal and mineral additives for compost additives and field sprays.
• No difference in beneficial outcomes has been scientifically established between certified biodynamic agricultural techniques and similar organic and integrated farming practices. Biodynamic agriculture is a pseudoscience as it lacks scientific evidence for its efficacy because of its reliance upon esoteric knowledge and mystical beliefs.
• As of 2020, biodynamic techniques were used on 251,842 hectares in 55 countries, led by Germany, Australia and France.[10] Germany accounts for 41.8% of the global total;[11] the remainder average 1,750 ha per country.
• Biodynamic methods of cultivating grapevines have been taken up by several notable vineyards.
• There are certification agencies for biodynamic products, most of which are members of the international biodynamics standards group Demeter International.

9. Agroecology or Agroecological farming

Subject: Environment

Section : Agriculture

• Agroecology is the study of ecological processes applied to agricultural production systems.
  • Application of ecological principles to agroecosystems can help in developing novel management approaches and techniques in agriculture systems.
  • The field of agroecology is not associated with any one particular method of farming, whether it be organic, integrated, or conventional, intensive or extensive. However, it has much more in common with organic and integrated farming.
• Agroecology is not against the use of technology in agriculture but assesses how, when, and if technology can be used in conjunction with natural, social and human assets.
  • It recognizes that there is no universal formula or recipe for the success and maximum well-being of an agroecosystem and is context- or site-specific.
• Agroecology is not defined by certain management practices, instead, it studies questions related to the four system properties of agroecosystems:

1. productivity,
2. stability,
3. sustainability and
4. equitability

• Agroecologists see all four properties as interconnected and integral to the success of an agroecosystem and study them through an interdisciplinary lens,
  • using natural sciences to understand elements of agroecosystems as well as
  • using social sciences to understand the effects of farming practices on rural communities, economic constraints to developing new production methods, or cultural factors determining farming practices.
• Agroecologists do not limit themselves to the study of agroecosystems at any one scale: gene- organism- population- community- ecosystem- landscape- biome, field- farm- community- region- state- country- continent- global.

Benefits of Agroecology-

• It provides a robust set of solutions to the environmental and economic pressures facing agriculture today.
• The current industrial food system has gone off the rails, increasingly dependent on health-harming pesticides and other chemical inputs that degrade soil, threaten pollinator populations and pollute water.
• By shifting farming policies and practices to embrace agroecology, we can create a food system to sustain this and future generations — one rooted in productivity, resilience, equity and sustainability.
• Agroecological farming can double food production within ten years without harming the environment.
• Agroecology recognizes the multifunctional dimensions of agriculture – which not only produces food, jobs and economic well-being but also creates cultural, social and environmental benefits.
• Agroecology also protects and provides ecosystem services like pollination, natural pest control, nutrient and water cycling and erosion control.

Agroecological farming has been shown to-

• Increase ecological resilience, especially with respect to volatile weather conditions;
• Improve health and nutrition through more diverse, nutritious and fresh diets and reduced incidence of pesticide poisonings and pesticide-related diseases;
• Conserve biodiversity and natural resources such as soil organic matter, water, crop genetic diversity and natural enemies of pests;
• Improve economic stability with more diverse sources of income, the spread of labour needs and production over time, and reduced vulnerability to commodity price swings; and
• Mitigate effects of climate change through reduced reliance on fossil fuels and fossil fuel-based agricultural inputs, increased carbon sequestration and water capture in soil.

10. Bid to end tax anomaly between biogas, natural gas to promote green fuel

Subject : Environment

Section: Climate change

Context: In a bid to clear the tax anomaly between biogas and natural gas when blending for use as auto fuel (compressed natural gas), Finance Minister has proposed exemption in excise duty on CNG to the extent equal to the GST paid on biogas or compressed biogas, subject to conditions.

More on the News:

• Currently natural gas falls under the value-added tax (VAT) regime, while biogas attracts GST.
• The Government has been promoting the use of compressed biogas as an alternative green transport fuel, which is produced through anaerobic decomposition of waste/ biomass sources, including municipal solid waste.
• The Ministry of Petroleum and Natural Gas had launched the ‘Sustainable Alternative Towards Affordable Transportation’ (SATAT) initiative on October 1, 2018, aimed at establishing an eco-system for the production of compressed biogas from waste/ biomass sources and promote its use along with natural gas.
• Subsequently, the ministry had issued guidelines for co-mingling of domestic gas, for supply through city gas distribution networks, with compressed biogas. However, due to the tax discrepency, the blending had not taken off.
• The Budget has attempted to address the blending issue of CBG in PNG by exempting GST-paid CBG from excise duty in order to boost green mobility even further. This also works as cost rationalisaiton for CBG producers.

SATAT Scheme

• It was launched in 2018 by the Ministry of Petroleum & Natural Gas in association with Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd.
• It envisages targeting production of 15 MMT of CBG from 5000 plants by 2023.
• It aims to set up Compressed Bio-Gas production plants and make CBG available in the market for use as a green fuel.

Compressed Bio-Gas (CBG)

• Bio-gas is produced naturally (through a process of anaerobic decomposition) from waste / bio-mass sources like agriculture residue, cattle dung, sugarcane press mud, municipal solid waste, sewage treatment plant waste, etc.
• After purification, it is compressed and called CBG, which has high methane content.
• It is exactly similar to the commercially available natural gas in its composition and energy potential.
• It can be used as an alternative, renewable automotive fuel with similar calorific value and other properties similar to CNG.

11. Economy transitioning to net-zero will require chemical solutions

Subject : Environment

Section: Climate change

Context: From the chemicals industry perspective, an economic transition from fossil fuel to sustainable energy has translated to a new revenue opportunity in the past and may most likely continue to support the industry.

More on the News:

• Chemicals’ applications in the green transition will be widely similar to a fossil-based economy.
• Electrolytes in batteries, solar films used in solar panels, waste treatment in biogas and biomass, efficient catalysts replacing older chemicals and environment compliant refrigerants, chemicals are used in most green solutions.
• This should be beneficial for companies which have or are developing solutions in such space.
• Customs duty for fluorospar, a raw material for fluorochemicals which is used in pharma, agro-chem and new age energy solutions, has also been reduced from 5 per cent to 2.5 per cent supporting emerging solutions.
• The Make-in-India push by the government in the electronics segment spells opportunity for chemicals manufacturers supplying to semiconductor industries as well.
• On a broader basis, net-zero carbon emission by 2070 will involve solutions engineered by chemicals industries to cap the emissions from industrial processes.

12. Remittances high, low tax payment

Subject :Economy

Section: Fiscal Policy

Section:

Context: Finance Secretary said the measures have been taken based on information that people are making high-value remittances but their tax returns are not reflecting proportionate income tax payments.

More on the News:

• To trace high-value spending and tax avoidance by high net-worth individuals, the government announced a sharp hike in the tax collected at source (TCS) rate — to 20 per cent from 5 per cent, on overseas tour packages and on certain remittances out of India under the liberalised remittance scheme (LRS)
• This has been proposed with the exception of LRS remittances for education and medical treatment purpose
• The Finance Bill, through the Budget 2023-24, amended Section 206C of the Income Tax Act levying a higher TCS on overseas tour programme packages.
• Also, 20 per cent TCS will be applicable on certain remittances without any threshold as against the current scenario of 5 per cent tax rate where funds in excess of Rs 7 lakh are sent out of India under the Liberalised Remittance Scheme of the RBI.
• The amendments will come into effect from July 1, 2023.

About Liberalised remittance scheme: https://optimizeias.com/liberalised-remittance-scheme/

13. Accelerator fund for agri-startups

Subject :Schemes

Section :Agriculture

Context: The government will set up an accelerator fund for agri-startups: Budget

More on the News:

• The government will set up an accelerator fund for agri-startups to increase digital infrastructure in the rural areas and boost startups in this space.
• The fund will work towards implementing cost-effective solutions to address the various challenges faced by farmers by introducing cutting-edge technologies and increasing output.

Agriculture Accelerator Fund:

• The fund is to be setup to increase the number of agricultural startups in the rural areas
• The main aim of the fund is to provide innovative and affordable solutions
• It will focus only on farmers and the challenges faced by them
• More young entrepreneurs will be encouraged to begin agri-startups using these funds
• Startups focusing on cost-effective solutions will be given priorities
• Also, technology startups that aim to increase agricultural outputs will be given preference.

14. US destroyed arms control pact – New start treaty

Subject : International Relations

Section: Important Events

Concept :

• Russia has accused US for destroying weapons control agreements, after the US said Russia was not complying with their last remaining arms pact, the New START treaty.

New START Treaty

• The New Strategic Arms Reduction Treaty (New START) pact limits the number of deployed nuclear warheads, missiles and bombers and is due to expire in 2021 unless renewed.
• The treaty limits the US and Russia to a maximum of 1,550 deployed nuclear warheads and 700 deployed missiles and bombers, well below Cold War caps.
• It was signed in 2010 by former US President Barack Obama and then-Russian President Dmitry Medvedev.
• It entered into force on 5th February, 2011.
• It is one of the key controls on the superpower deployment of nuclear weapons.
• Its duration was for ten years that is till 2021, but it was extended by five more years till 2026.

Important Disarmament Treaties signed between Russia and USA

Strategic Arms Limitation Talks-1(SALT):

• It began in 1969, Under the Interim Agreement, both sides pledged not to construct new Intercontinental Ballistic Missile (ICBM) silos, not to increase the size of existing ICBM silos significantly, and capped the number of Submarine-Launched Ballistic Missile (SLBM) launch tubes and SLBM-carrying submarines.

Strategic Arms Reduction Treaty-1 (START):

• Signed in 1991, the agreement required the destruction of excess delivery vehicles which was verified using an intrusive verification regime that involved on-site inspections, the regular exchange of information (including telemetry), and the use of national technical means (i.e., satellites).

Strategic Arms Reduction Treaty-2:

• Signed in 1993, called for reducing deployed strategic arsenals to 3,000-3,500 warheads and banned the deployment of destabilizing multiple-warhead land-based missiles.

Strategic Offensive Reductions Treaty (SORT):

• Signed in 2004, under which the United States and Russia reduced their strategic arsenals to 1,700-2,200 warheads each.

Strategic Arms Reduction Treaty (START):

• Signed in 2010, a legally binding, verifiable agreement that limits each side to 1,550 strategic nuclear warheads deployed on 700 strategic delivery systems (ICBMs, SLBMs, and heavy bombers) and limits deployed and nondeployed launchers to 800.

15. Vibration failure led to failure of SSLV – D1

Subject : Science and technology

Section: Space

Concept :

• The Indian Space Research Organisation (ISRO) on Wednesday issued an official statement explaining in detail the failure of the first development flight of the Small Satellite Launch Vehicle (SSLV) in August last year.
• The space agency also spelt out corrective actions ahead of the launcher’s next development flight – SSLV-D2 – scheduled during the first quarter of 2023.
• The objective of SSLV-D1/EOS-02 was to inject ISRO’s EOS-02 satellite and a student satellite, Azaadisat, into a circular orbit of 356.2 km.
• However, the spacecraft was injected into a highly elliptical unstable orbit due to a shortfall in velocity, leading to their decay and deorbiting immediately, in spite of normal performance of all solid propulsion stages

Small Satellite Launch Vehicle

• Small Satellite Launch Vehicle (SSLV) is a three stage Launch Vehicle configured with three Solid Propulsion Stages and a liquid propulsion-based Velocity Trimming Module (VTM) as a terminal stage.
• SSLV is 2m in diameter and 34m in length with a lift-off weight of around 120 tonnes.
• SSLV is capable of launching 500kg satellites in 500km planar orbit from Satish Dhawan Space Centre (SDSC).
• Key Features:
• Low cost,
• Low turn-around time,
• Flexibility in accommodating multiple satellites,
• Launch demand feasibility,
• Minimal launch infrastructure requirements, etc.

SSLV-D1/EOS-02 Mission

• It was aimed at garnering a larger pie in the small launch vehicles market, as it could place the satellites into Low Earth Orbit.

It was carrying the two satellites on board the rocket –

• The primary EOS-2 Earth-observing satellite– EOS-02 is an earth observation satellite designed and realised by ISRO.
• This microsat series satellite offers advanced optical remote sensing operating in infra-red band with high spatial resolution.
• The secondary AzaadiSAT student satellite– It is an 8U Cubesat weighing around 8 kg.
• It carries 75 different payloads each weighing around 50 grams and conducts femto-experiments.
• It carried out tiny experiments which would have measured the ionising radiation in its orbit and also a transponder which worked in the ham radio frequency to enable amateur operators to access it.
• Girl students from rural regions across the country were provided guidance to build these payloads.
• The payloads are integrated by the student team of “Space Kidz India”.

Difference between Circular and Elliptical Orbits

• Elliptical Orbits:
  • Mostly objects such as satellites and spacecrafts are put in elliptical orbits only temporarily.
  • They are then either pushed up to circular orbits at a greater height or the acceleration is increased until the trajectory changes from an ellipse to a hyperbola and the spacecraft escapes the gravity of the Earth in order to move further into space — for example, to the Moon or Mars or further away.
• Circular Orbits:
  • Satellites that orbit the Earth are mostly placed in circular orbits.
• One reason is that if the satellite is used for imaging the Earth, it is easier if it has a fixed distance from the Earth.
• If the distance keeps changing as in an elliptical orbit, keeping the cameras focused can become complicated.

16. PAN to be used as common identifier for digital systems

Subject : Economy

Section : Fiscal Policy

Concept :

• Finance Minister Nirmala Sitharaman on Wednesday, February 1 said Permanent Account Number (PAN) will be used as a common identifier for all digital systems of specified government agencie
• The move would help in further promoting ease of doing business in the country.
• Significance
• PAN is a 10-digit alphanumeric number allotted by the income tax department to a person, firm or entity.
• PAN enables the department to link all transactions of the “person” with the department.
• These transactions include tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence, and so on.
• PAN, thus, acts as an identifier for the “person” with the tax department.
• She also said that if MSMEs fail to execute contracts, 95 per cent of performance security will be returned to small businesses as part of Vivad Se Vishwas scheme.

Vivad Se Vishwas Scheme:

• The scheme provides for settlement of disputed tax, disputed interest, disputed penalty or disputed fees in relation to an assessment or reassessment order on payment of 100% of the disputed tax and 25% of the disputed penalty or interest or fee.
• The Direct Tax Vivad se Vishwas Act, 2020 was enacted in March 2020 to settle direct tax disputes locked up in various appellate forums.
• As many as 1.25 lakh cases, a quarter of all direct disputes, have opted for Vivad se Vishwas scheme, enabling settlement of Rs. 97,000 crore in tax demands.

17. Funds for minority scheme slashed by 38 percent

Subject : Schemes

Concept :

• The Budget allocation for the Ministry of Minority Affairs was reduced by 38% for the financial year 2023­-24 to the year 2022­-23.
• Several scholarship and skill development schemes got major fund cuts including the merit­ cum means scholarship for professional and technical courses for students from minority communities.
• The schemes have been allotted funds of ₹44 crore this year, while the Budget for the same was ₹365 crore last year.
• Also,the budget allocation for the Pradhan Mantri Jan Vikas Karyakram (PMJVK) is reduced massively this year.
• The Budget for PMJVK was ₹1,650 crore last year which is reduced to 600 crores this year.

Pradhan Mantri Jan Vikas Karyakram

• The Pradhan Mantri Jan Vikas Karyakram (PMJVK) is a Centrally Sponsored Scheme, under the Ministry of Minority Affairs.
• PMJVK is implemented through the State Governments/ Union Territory Governments.
• Projects under PMJVK are proposed by the States/ UTs where land is already available with the State/ UT.
• The Central Government does not acquire land for construction under the scheme. The land cost or land acquisition costs are not covered under this programme.
• The State Government/UT administration reports the progress to the Ministry of Minority Affairs in respect of each project on quarterly basis for both physical and financial progress in the performance of Quarterly Progress Report (QPR) prescribed for this purpose.
• The PMJVK guidelines also provide for quarterly meetings by the District Level Committee to review the progress of implementation of the projects under PMJVK and submission of reports to the State Level Committee (SLC).
• The Pradhan Mantri Jan Vikas Karyakram (PMJVK) is implemented in 1300 identified Minority Concentration Areas (MCAs) of the Country with the objective to develop socio-economic infrastructure assets and basic amenities in these areas.
• The scheme is now implemented in all Districts of the country including all the Aspirational Districts.

18. Vehicle scrapping policy

Subject : Schemes

Concept :

• The Union Budget for 2023-­24 has laid special emphasis on vehicle scrapping policy by allocating adequate funds to replace vehicles that are over 15 years.
• Finance Minister Nirmala Sitharaman today announced that “adequate funds” have been allocated in the Union Budget 2023-24 to scrap and replace old vehicles of the central government.
• Also, the states will be supported in replacing old government vehicles and ambulances.
• The move is part of Prime Minister Narendra Modi government’s aim to support a green economy.
• In furtherance of the Vehicle Scrapping Policy, mentioned in the Budget 2021-22, I’ve allocated adequate funds to scrap old vehicles of the central government,” Sitharaman said.

Vehicle Scrappage Policy

• It was first announced in the Union Budget 2021-22.
• The Vehicle Scrapping Policy is aimed at creating an eco-system for phasing out unfit and polluting vehicles in an environment friendly and safe manner.
• The policy intends to create scrapping infrastructure in the form of Automated Testing Stations and Registered Vehicle Scrapping Facilities across the country.
• Old and unfit vehicles whose life cycle is complete shall be scrapped. This will be a voluntary process but defined by rules.
• For instance, old vehicles (15 to 20 years) need not be scrapped compulsorily. However, they will have to undergo a fitness test after a defined period. Failing the test would most likely lead to vehicle scrappage.
• The policy would cover an estimated 51 lakh light motor vehicles (LMVs) that are above 20 years of age and another 34 lakh LMVs above 15 years of age.
• Rules and regulations will be made around the actual scrapping process, which shall be laid out in the announcement made by the MoRTH.
• Vehicle owners will be given certain benefits for scrapping old vehicles.
• As a disincentive, increased re-registration fees would be applicable for vehicles 15 years or older from the initial date registration.
• The state governments may be advised to offer a road-tax rebate of up to 25% for personal vehicles and up to 15% for commercial vehicles to provide incentive to owners of old vehicles to scrap old and unfit vehicles.

19. Mahila Samman Saving Certificate

Subject: Economy

Section: Fiscal policy

Concept:

• Finance Minister recently announced a new saving scheme ‘Mahila Samman Saving Certificate’ for women and girls in the Union Budget.

Mahila Samman Saving Certificate Scheme:

• The scheme offers deposit facility up to Rs 2 lakh in the name of women or girls for a tenor of 2 years.
• It offers fixed interest rate of 7.5 per cent.
• There are no tax benefits, but partial withdrawal is allowed in this scheme.
• This is a one-time scheme announced in Budget 2023 and will remain available for a two-year period i.e. up to March 2025.
• Benefit: It will encourage more women to adopt formal financial saving instruments.

20. Judicial majoritarianism

Subject : Polity

Section: Judiciary

Concept :

• Against the backdrop of the recent Supreme Court judgement on demonetisation, the majority judgement of the Court on issues had been criticised while the minority judgement by Justice Nagarathna is being acclaimed.

Background

• A five-judge Constitution Bench of the Supreme Court upheld the government’s process to demonetise ₹500 and ₹1000 banknotes through a gazette notification issued on the 8th of November 2016.
• A Constitutional Bench of the Supreme Court upheld the government’s demonetisation process in a 4:1 majority verdict.

What is judicial majoritarianism?

• While standard matters are placed in front of Division Benches which consist of two judges, cases that mandate the interpretation of constitutional provisions would require numerical majorities in order to reach a conclusion.
• Hence to hear such cases that mandate the interpretation of the constitutional provisions, Constitutional Benches are formed which consist of at least five judges or more.
• Constitutional Benches usually consist of five, seven, nine, 11 or even 13 judges (odd numbers) in order to facilitate decision-making via numerical majorities.
• Constitutional Benches are set up in accordance with the provisions of Article 145 (3) of the Constitution.
• As per Article 145 (3), a minimum of five judges must sit for deciding a case involving a “substantial question of law as to the interpretation of the Constitution”, or for hearing any reference under Article 143, which deals with the power of the President to consult the Supreme Court.
• Article 145 (5) of the Constitution required a majority consensus for a judicial outcome.
• According to Article 145 (5), “no judgment in such cases can be delivered except with the concurrence of a majority of the judges but that judges are free to deliver dissenting judgments or opinions”.

Constitutional history of meritorious dissents

• In the A.D.M. Jabalpur v. Shivkant Shukla (1976) case: the dissenting opinion of Justice H.R. Khanna in upholding the Right to Life and personal liberty even during situations of constitutional exceptionalism is regarded as a remarkable example of meritorious dissent.
• In the Kharak Singh v. State of U.P. (1962) case: the dissenting opinion of Justice Subba Rao in upholding the Right to Privacy which was later approved through the K.S. Puttaswamy Judgment is also a prime example of meritorious dissent.

21. New policy of UPI for NRI

Subject : Economy

Section :Msc

Concept :

• The National Payments Corporation of India (NPCI) paved the way for international (phone) numbers to be able to transact using UPI.
• The Union Cabinet also approved an incentive scheme with an outlay of ₹2,600 crores for the promotion of RuPay debit Cards and low-value BHIM-UPI transactions (person-to-merchant) in FY 2022-23.
• As per the DigiDhan dashboard maintained by the Ministry of Electronics and Information Technology, BHIM-UPI accounted for 52% of all digital payments in FY 2021-22.

International numbers:

• Non-resident accounts such as non-resident external accounts (NRE) and non-resident ordinary accounts (NRO), having international numbers, will now be allowed into the UPI payment system.
• NRE accounts are those used by non-residents to transfer earnings from foreign countries to India while NRO accounts are used to manage income earned in India by non-residents. These incomes could be rent, interest, and pension, among other things.
• At present, users from 10 countries will be able to avail of the facility. They are Singapore, Australia, Canada, Hong Kong, Oman, Qatar, the U.S., Saudi Arabia, UAE, and the U.K.
• It will allow NRIs to use the payment method for making utility bill payments for their families (or themselves) in India, make purchases from e-commerce or online platforms and make payments to physical merchants who accept UPI QR-based payments when they travel to India.

Merchant Discount Rate

• Presently, there is no MDR charge levied for RuPay-based debit card and UPI transactions.
• The merchant discount rate is the rate charged to a merchant for payment processing services on debit and credit card transactions.
• It is collected by the acquirer to compensate the varied service providers and intermediaries in the payment system.

Unified Payments Interface

• Unified Payments Interface (UPI) is an instant real-time payment system developed by the National Payments Corporation of India.
• The interface facilitates inter-bank peer-to-peer and person-to-merchant
• It is used on mobile devices to instantly transfer funds between two bank accounts.

22. Zero tax for annual income up to 7 lakhs under new scheme – Tax slab

Subject :Economy

Section :Fiscal Policy

Concept :

• The central government made a much-awaited mega announcement on increasing the income level up to which no income tax is payable: ₹ 7 lakh a year from the 2023-24 financial year. It was Rs 5 lakh so far.
• This change is only for those who choose the New Tax Regime.
• Tax surcharges of the taxpayers in the highest tax bracket were reduced from 37% to 25%.
• Also, Finance minister in her budget for 2023-24 allowed a standard deduction of 50,000 under the new tax regime.
• After listing out the slabs, the minister also announced that the Old regime — which has higher tax rates but several exemptions — will only be available on request now, and the New regime will thus be considered the default system for everyone.

Revised Tax Slab

• A five-slab structure will apply now under the New regime, also raising the no-tax slab by ₹ 50,000.
• Income between ₹ 0-3 lakh will have no tax; it was zero to ₹ 2.5 lakh earlier.
• From then on:
• Income part from ₹ 3 lakh and 6 lakh will be taxed at 5 per cent;
• Rs 6 lakh to ₹ 9 lakh, at 10 per cent;
• Rs 9 lakh to 12 lakh, 15 per cent;
• Rs 12 lakh to 15 lakh will attract a 20-per-cent tax; and
• The part of income going above ₹ 15 lakh will be taxed at 30 per cent.
• The minister also brought down the highest applicable tax rate in India after surcharges, from 42.7 per cent to 39.
• Rates and slabs under the Old Tax Regime remain unchanged.

23. FM moots national digital library

Subject :Schemes

Concept :

• Finance Minister Nirmala Sitharaman has proposed a national digital library for children and adolescents along with strengthening of the National Book Trust,for building a “culture of reading” and to make up for pandemic­ time learning losses.
• She said the States would be encouraged to set up physical libraries at panchayat and ward levels, and provide infrastructure for accessing the National Digital Library resources.

National Digital Library

• National Digital Library of India (NDLI) is a project of the Ministry of Human Resource Development under the aegis of National Mission on Education through Information and Communication Technology (NMEICT).
• It is developed by IIT Kharagpur.
• Objective: The objective of NDL is to make digital educational resources available to all citizens of the country to empower, inspire and encourage learning.
• Key facts:
• NDL is the Single Window Platform that collects and collates metadata from premier learning institutions in India and abroad, as well as other relevant sources.
• It is a digital repository containing textbooks, articles, videos, audio books, lectures, simulations, fiction and all other kinds of learning media.
• It makes quality learning resources available to all learners and has 1.7 Crore content from more than 160 sources, in over 200 languages.

About NMEICT:

• The National Mission on Education through Information and Communication Technology (ICT) has been envisaged as a Centrally Sponsored Scheme to leverage the potential of ICT, in teaching and learning process for the benefit of all the learners in Higher Education Institutions in any time anywhere mode.
• The Mission has two major components – providing connectivity, along with provision for access devices, to institutions and learners; and content generation.

National Book Trust

• NBT, India is an apex body established by the Government of India (Department of Higher Education, Ministry of Human Resource Development) in the year 1957.

Objectives of the NBT are

• to produce and encourage the production of good literature in English, Hindi and other Indian languages.
• to make such literature available at moderate prices to the public.
• to bring out book catalogues, arrange book fairs/exhibitions and seminars and take all necessary steps to make the people book minded.