Daily Prelims Notes 2 March 2023

Daily Prelims Notes

2 March 2023

Table Of Contents

1. The cases for open verifiable forest cover data
2. Horn of Africa has entered 6th consecutive wet season with no rain: UNHCR
3. Budget could have paid more attention to fodder
4. Scheduled Tribes panel requisitions FRA action reports from top court
5. LG seeking report on violation is a bid to interfere with assembly functioning – speaker
6. Bibi ka maqbara and history of Aurangabad
7. Combining social welfare and capital market through SSE
8. Yield Curve Inversion
9. Technology Upgradation Fund Scheme
10. Debate over Origin of Corona Virus
11. China warns Elon Musk after COVID lab leak comments
12. ‘Anmol Jeevan Abhiyan’
13. Gross Domestic Product
14. Five S-400 regiments expected to be delivered by early-2024
15. Press Council issues advisory on ‘paid news’

1. The cases for open verifiable forest cover data

Subject : Environment

Section : Biodiversity

Context: The Indian Express accessed and cross-checked a part of the geo-referenced forest covers data which the government, since the 1980s, has refused to share with the media.

More on the News:

• Lutyens’ Delhi is India’s Capital, the seat of power and home to men and women who run the country, is well known. But what’s not so well known is that the bungalows of ministers and senior officers, even the Reserve Bank of India (RBI) building on Sansad Marg, are “forest” in the official forest cover map.
• Parts of the campuses of the Indian Institute of Technology (IIT) and All India Institute of Medical Sciences (AIIMS), and residential neighbourhoods across Delhi are also “forest”, an investigation by The Indian Express has found.
• A ground verification of parts of the FSI’s latest (SFR 2021) forest cover data offered a glimpse, for the first time, of all that can be labelled forest under the official interpretation of satellite images: private plantations on encroached and cleared reserve forest land, tea gardens, betel nut clusters, village homesteads, roadside trees, urban housing areas, VIP residences, parts of educational and medical institutes etc.
• Since 19.53% in the early 1980s, India’s forest cover has increased to 21.71% in 2021. Adding to this a notional 2.91% tree cover estimated in 2021, the country’s total green cover now stands at 24.62%.

Definition of Forest:

• At present, in India, there is no clear nationally-accepted definition of ‘forest’.
• States are responsible for determining their definition of forests.
• The prerogative of the states to define forests stems from a 1996 Supreme Court order called the N. GodavarmanThirumulkpad vs the Union of India judgment.
  • SC had opined that all-encompassing definition of forest wasn’t possible for India because the country has 16 different kinds of forest and a tract of grassland in one State might qualify in one region as forest but not in another.
  • In the judgement, the Supreme Court interpreted that the word “forest” must be understood according to its “dictionary meaning”.
  • This description covers all statutorily recognised forests, whether designated as reserved, protected or otherwise.
• Types of forest
  • Reserved Forests: Reserve forests are the most restricted forests and are constituted by the State Government on any forest land or wasteland which is the property of the Government. In reserved forests, local people are prohibited, unless specifically allowed by a Forest Officer in the course of the settlement.
  • Protected Forests: The State Government is empowered to constitute any land other than reserved forests as protected forests over which the Government has proprietary rights and the power to issue rules regarding the use of such forests. This power has been used to establish State control over trees, whose timber, fruit or other non-wood products have revenue-raising potential.
  • Village forest: Village forests are the one in which the State Government may assign to ‘any village community the rights of Government to or over any land which has been constituted a reserved forest’.
• Degree of protection: Reserved forests > Protected forests > Village forests

India State of Forest Report

• It is an assessment of India’s forest and tree cover, published every two years by the Forest Survey of India under the Ministry of Environment, Forests and Climate Change.
• The first survey was published in 1987, and ISFR 2021 is the 17th.
• India is one of the few countries in the world that brings out such every two years, and this is widely considered comprehensive and robust.
• With data computed through wall-to-wall mapping of India’s forest cover through remote sensing techniques, the ISFR is used in planning and formulation of policies in forest management as well as forestry and agroforestry sectors.
• Forest Cover is defined as “An area more than 1 ha in extent and having tree canopy density of 10 percent and above”.
• Tree Cover is defined as “Tree patches outside recorded forest areas exclusive of forest cover and less than the minimum mappable area of one hectare”.
• Three categories of forests are surveyed
  • Very Dense Forests (canopy density over 70%),
  • Moderately Dense Forests (40-70%) and Open Forests (10-40%),
  • Scrubs (canopy density less than 10%)

Issues with Forest report data:

• Green cover data in India disregards the UN benchmark that does not include areas predominantly under agricultural and urban land use in forests.
• In India, land recorded as forest in revenue records or proclaimed as forest under a forest law is described as a Recorded Forest Area.
• The inclusion of commercial plantations, orchards, village homesteads, urban housings, etc., as dense forests.
• The steady replacement of natural forests with plantations is worrisome, as natural forests support a lot more biodiversity and stock a lot more carbon.
• The outcome of the refinement of satellite images was that the forest cover fell within the forest area while it increased outside.
• Lack of manpower limits the FSI’s scope for verifying the quality of remotely sensed data in the field.
• The FSI nevermade its data freely available for public scrutiny and bars the media from accessing its geo-referenced maps.
• Investigation into the compensatory afforestation programme shows that the locations provided for growing plantations usually have very low prospect of any meaningful forests growing.

Why steady replacement of natural forests with plantations is worrisome?

• First, natural forests have evolved naturally to be diverse and, therefore, support a lot more biodiversity.
• Secondly, plantation forests have trees of the same age, are more susceptible to fire, pests and epidemics, and often act as a barrier to natural forest regeneration.
• Thirdly, natural forests are old and therefore stock a lot more carbon in their body and in the soil.
• In 2018, the United Nations Framework Convention on Climate Change (UNFCCC) flagged India’s assumption that new forests (plantations) reach the carbon stock level of existing forests in just eight years.
• On the other hand, plantations can grow a lot more and faster than old natural forest This also means that plantations can achieve additional carbon targets faster. But compared to natural forests, plantations are often harvested more readily, defeating carbon goals in the long term.

2. Horn of Africa has entered 6th consecutive wet season with no rain: UNHCR

Subject : International relations

Section :Place in news

Context: The Horn of Africa has now entered its sixth consecutive rainy season with no rain, the United Nations High Commissioner for Refugees said in a statement  Feb 28, 2023.

The last five rainy seasons have been deficit and the rains from March-May were likely to be average, according to the joint statement released by multilateral agencies and another report by REACH, a humanitarian initiative.

Details:

• Three countries in the Horn of Africa — Kenya, Ethiopia and Somalia— have been experiencing an ongoing drought since late 2020. A humanitarian crisis has been brewing since then and is now even more worrying for Somalia. The number of displacements in the country has peaked to a new high of 3.8 million people.
• Since January 2023, at least 288,000 people have become internally displaced in the country due to conflict and drought according to UNHCR estimates (as of February 28, 2023). This is very close to total 305,000 new displacements during the entire year of 2016, according to the UNHCR data portal.
• Failure of rains and conflict in Somalia could further force people to migrate to major cities and towns, especially Baidoa and Mogadishu. Close to 300,000 people could be newly displaced by July 2023, according to the projected the International Organization for Migrants (IOM).
• Somalia migrants seek refuge in drought-affected areas of Kenya and Ethiopia too, stated UNHCR

The UNHRC

• The UNHRC describes itself as an inter-governmental body within the UN system responsible for strengthening the promotion and protection of human rights around the globe.
• It addresses situations of human rights violations and make recommendations on them.
• The UNHRC has the ability to discuss all thematic human rights issues and situations that require its attention throughout the year.
• The UNHRC replaced the former United Nations Commission on Human Rights (UNCHR).

HRC Meetings

• The Human Rights Council holds no fewer than three regular sessions a year, for a total of at least 10 weeks.
• The sessions are held at the UN Office in Geneva, Switzerland.
• If one-third of the Member States so request, the HRC can decide at any time to hold a special session to address human rights violations and emergencies.

Membership

• The Council is made up of 47 UN Member States, which are elected by the UNGA through a direct and secret ballot.
• The General Assembly takes into account the contribution of the candidate states to the promotion and protection of human rights, as well as their voluntary pledges and commitments in this regard.
• Members of the Council serve for a period of three years, and are not eligible for immediate re-election after serving two consecutive terms.

Seats distribution

• African States: 13 seats, Asia-Pacific States: 13 seats, Latin American and Caribbean States: 8 seats, Western European and other States: 7 seats and Eastern European States: 6 seats.

Horn of Africa

• The Horn of Africa is a peninsula in Africa. It lies along the southern side of the Red Sea and extends hundreds of km into the Gulf of Aden, Somali Sea, and Guardafui Channel.
• The area is the easternmost projection of the African continent.
• Referred to in ancient and medieval times as the land of the Barbara and Ethiopians, the Horn of Africa denotes the region containing the countries of Djibouti, Eritrea, Ethiopia, and Somalia.

3. Budget could have paid more attention to fodder

Subject: Schemes

Section: Agriculture

Rashtriya Gokul Mission comprises of two components namely:

• The national program for bovine breeding and
• National mission for bovine productivity

Objectives:

• Development and conservation of indigenous breeds in a focused and scientific manner.
• Undertake breed improvement program for indigenous cattle breeds so as to improve the genetic makeup and increase the stock.
• Enhance milk production and productivity.
• Distribute disease free high genetic merit bulls for natural service.

Significant initiatives under RashtriyaGokul Mission:

Awards for encouraging farmers/breeder societies to rear Indigenous breeds of bovines:

• Gopal Ratna awards: for farmers maintaining the best herd of Indigenous Breed and practicing best management practices.
• Kamdhenu awards: for best managed Indigenous herd by Institutions/Trusts/ NGOs/ Gaushalas or best-managed Breeders’ societies.
• Gokul Gram: The RashtriyaGokul Mission envisages the establishment of integrated cattle development centers, ‘Gokul Grams’ to develop indigenous breeds including up to 40% nondescript breeds (belonging or appearing to belong to no particular class or kind) with objectives to:
• Promote indigenous cattle rearing and conservation in a scientific manner.
• Propagate high genetic merit bulls of indigenous breeds.
• Optimize modern Farm Management practices and promote Common Resource Management.
• Utilize animal waste in an economical way i.e. Cow Dung, Cow Urine
• National Kamdhenu Breeding Centre: (NKBC) is being established as a Centre of Excellence to develop and conserve Indigenous Breeds in a holistic and scientific manner.
• “E-PashuHaat”- NakulPrajnan Bazaar: An e-market portal connecting breeders and farmers, for quality- disease-free bovine germplasm.
• PashuSanjivni: An animal wellness program encompassing the provision of animal health cards (‘NakulSwasthyaPatra’) along with UID identification and uploading data on National DataBase.
• Advanced Reproductive Technology: Including Assisted Reproductive Technique- In-vitro Fertilization (IVF)/ Multiple Ovulation Embryo Transfer (MOET) and sex-sorted semen technique to improve the availability of disease-free female bovines.
• National Bovine Genomic Center for Indigenous Breeds (NBGC-IB) will be established for selection of breeding bulls of high genetic merit at a young age using highly precise gene-based technology.

Implementing Agency

• RashtriyaGokul Mission will be implemented through the “State Implementing Agency (SIA viz Livestock Development Boards).
• State GausevaAyogs will be given the mandate to sponsor proposals to the SIA’s (LDB’s) and monitor implementation of the sponsored proposal.
• All Agencies having a role in indigenous cattle development will be the “Participating Agencies” like ICAR, Universities, Colleges, NGO’s, Cooperative Societies and Gaushalas.

Why conservation of Indigenous breeds is the need of the hour?

• Indigenous bovines are robust and resilient and are particularly suited to the climate and environment of their respective breeding tracts and productivity of indigenous breeds is less likely to be impacted by the adversities of climate change.
• The milk of indigenous animals is high in fat and SNF content (The substances in milk other than butterfat and water in the form of casein, lactose, vitamins, and minerals which contribute significantly to the nutritive value of milk)

Revised version of Rashtriya Gokul Mission –

• The revised version of the Rashtriya Gokul Mission and National Livestock Mission (NLM) proposes to bring focus on entrepreneurship development and breed improvement in cattle, buffalo, poultry, sheep, goat, and piggery by providing incentives to individual entrepreneurs, farmer producer organisations, farmer cooperatives, joint liability groups, self-help groups, Section 8 companies for entrepreneurship development and State governments for breed improvement infrastructure.
• The breed multiplication farm component of the Rashtriya Gokul Mission is going to provide for capital subsidy up to ₹200 lakh for setting up breeding farm with at least 200 milch cows/ buffalo using latest breeding technology.
• The entrepreneur will be responsible for the arrangement of and would be able to sell at least 116 elite female calves every year out of this farm from the third year.
• The entrepreneur will also start generating income out of the sale of 15 kg of milk per animal per day for around 180 animals from the first year.
• This breeding farm will break even from the first year of the project after induction of milk in animals.
• Moreover, the strategy of incentivising breed multiplication farm will result in the employment of 1 lakh farmers.
• The grassroots initiatives in this sphere will be further amplified by web applications like e-Gopala that provide real-time information to livestock farmers on the availability of disease-free germplasm in relevant centres, veterinary care, etc.
• National Livestock Mission (NLM) launched in financial year 2014-15 seeks to ensure quantitative and qualitative improvement in livestock production systems and capacity building of all stakeholders. The scheme is being implemented as a sub scheme of White Revolution – Rashtriya Pashudhan Vikas Yojana since April 2019.
• Objectives: Sustainable growth, Fulfilling Fodder need, synergy of ongoing plan, Promoting Skill Training, genetic upgradation and conservation, risk management and community participation.
• The National livestock Mission is organised into the following four sub-Missions:
  • Sub -Mission on Livestock Development– The sub-mission on Livestock Development includes activities to address the concerns for overall development of livestock species including poultry, other than cattle and buffalo, with a holistic approach. Risk Management component of the sub –mission will, however, also cover cattle and buffalo along with other major and minor livestock.
  • Sub – Mission on Pig Development in North-Eastern Region– The sub -mission will strive to forge synergies of research and development organizations through appropriate interventions, as may be required for holistic development of pigs in the North Eastern Region including genetic improvement, health cover and post-harvest operations.
  • Sub – Mission on Feed and Fodder Development– The Sub –Mission is designed to address the problems of scarcity of animal feed and fodder resources, to give a push to the livestock sector making it a competitive enterprise for India, and also to harness its export potential. The sub- mission will especially focus on increasing both production and productivity of fodder and feed through adoption of improved and appropriate technologies best suited to specific agro –climatic region in both arable and non –arable areas.
  • Sub -Mission on Skill Development, Technology Transfer and Extension–  The sub – mission will provide a platform to develop, adopt or adapt the technologies including frontline field demonstrations in collaboration with farmers, researchers and extension workers, etc. wherever it is not possible to achieve this through existing arrangements.
• National Animal Disease Control Programme for Foot and Mouth Disease and Brucellosis is a 100% centrally funded programme, with a total outlay of Rs. 12,652 crore from 2019 to 2024. It aims to control Foot and Mouth Disease and Brucellosis by 2025 with vaccination and eventual eradication by 2030.

Revised Version of National Livestock Mission

• The poultry entrepreneurship programme of the NLM will provide for capital subsidy up to ₹25 lakh for setting up of a parent farm with a capacity to rear 1,000 chicks.
• Under this model, the hatchery is expected to produce at least 500 eggs daily, followed by the birth of chicks that are in turn reared for four weeks. Thereafter, the chicks can be supplied to local farmers for rearing.
• Under this model, the rural entrepreneur running the hatchery will be supplying chicks to the farmers.
• An entrepreneur will be able to break even within 18 months after launching the business. This is expected to provide employment to at least 14 lakh people.
• In the context of sheep and goat entrepreneurship, there is a provision of capital subsidy of 50% up to 50 lakh.
• An entrepreneur under this model shall set up a breeder farm, develop the whole chain will eventually sell the animals to the farmers or in the open market. Each entrepreneur can avail assistance for a breeder farm with 500 does/ewe and 25 buck/ram animals with high genetic merit from the Central/State government university farms.
• This model is projected to generate a net profit of more than ₹33 lakh for the entrepreneur per year.
• For piggery, the NLM will provide 50% capital subsidy of up to ₹30 lakh.
  • Each entrepreneur will be aided with establishment of breeder farms with 100 sows and 10 boars, expected to produce 2,400 piglets in a year.
  • A new batch of piglets will be ready for sale every six months. This model is expected to generate a profit of ₹1.37 crore after 16 months and 1.5 lakh jobs.
• The revised scheme of NLM coupled with the Rashtriya Gokul Mission and the Animal Husbandry Infrastructure Development Fund has the potential to dramatically enhance the productivity and traceability standards of our livestock.

4. Scheduled Tribes panel requisitions FRA action reports from top court

Subject : Environment

Section : Laws

Concept :

• In the middle of a face-off with the Environment Ministry over the new Forest Conservation Rules (2022) potentially diluting the Forest Rights Act, 2006, the National Commission for Scheduled Tribes has now secured FRA implementation reports of all States and Union Territories by invoking its Constitutional powers to approach the Supreme Court directly.

About the Issue

• After the Union government introduced the new FCR, the panel wrote to the Environment Ministry in September, asking that they be put on hold because they would violate provisions of the FRA.
• In response, Environment Minister Bhupendra Yadav insisted that the rules were framed under the Forest (Conservation) Act, 1980 and that the panel’s apprehension was “not legally tenable”.
• The commission in February wrote to the Supreme Court Registrar, invoking powers under Clause 8d of Article 338A.
• Commission was looking to review the overall implementation of the FRA at the ground level, examine rejection of titles and encroachments on forest land. It will propose recommendations to further secure the rights of tribespeople, under its Constitutional mandate.
• This will be part of the report sent to the Office of the President, which will then be tabled in Parliament.

Background

• The new Forest Conservation Rules — notified by the Ministry on June 28 — do not mention the earlier requirement of attaining a gram sabha NOC before diverting forest land for a project.
• They also allow forest rights to be settled after the final approval for forest clearances has been granted by the Centre,a point flagged by critics.
• The settling of forest rights now needs to be carried out by the state government instead of the Centre, as was the case earlier. The state governments will be under even greater pressure from the Centre to accelerate the process of diversion of forest land, critics say.
• The government said that the Forest (Conservation) Rules, 2022, are reformative with an objective to streamline the process of approvals under the Act, and enable the parallel processing under other Acts and Rules including FRA, 2006.
• The Forest Conservation Act, laid down the process by which forest diversion could be carried out for projects such as mines or dams.
• It was only when the Forest Rights Act, 2006 was enacted that the government mandated that the rights of forest dwelling communities need to be recognised, and that they needed to be consulted before the project was sanctioned.

About the news rules:

• It constituted an Advisory Committee, a regional empowered committeeat each of the integrated regional offices and a screening committee at State/Union Territory (UT) government-level.
• The role of the Advisory Committee is restricted to advise or recommend with regards to grant of approval .
• The MoEFCC has directed the constitution of a project screening committee in each state/UT for an initial review of proposals involving diversion of forest land. The five-member committee will meet at least twice every monthand will advise the state governments on projects in a time bound manner.
• All non-mining projects between 5-40 hectaresmust be reviewed within a period of 60 days and all such mining projects must be reviewed within 75 days. For projects involving a larger area, the committee gets some more time — 120 days for non-mining projects involving more than 100 hectares and 150 days for mining projects.
• All linear projects (roads, highways, etc), projects involving forest land up to 40 hectares and those that have projected a use of forest land having a canopy density up to 0.7 shall be examined in the Integrated Regional Office.
• The applicants for diverting forest land in a hilly or mountainous state with green cover covering more than two-thirds of its geographical area, or in a state/UT with forest cover covering more than one-third of its geographical area, will be able to take up compensatory afforestation in other states/UTs where the cover is less than 20%.

Scheduled Tribes And Other Traditional Forest Dwellers (Recognition Of Forest Rights) Act, 2006:

• The Forest Rights Act (FRA), 2006 recognizes the rights of the forest dwelling tribal communities and other traditional forest dwellers to forest resources, on which these communities were dependent for a variety of needs, including livelihood, habitation and other socio-cultural needs.
• The Act encompasses Rights of Self-cultivation and Habitation which are usually regarded as Individual rights; and Community Rights as Grazing, Fishing and access to Water bodies in forests, Habitat Rights for PVTGs etc.
• It also provides rights to allocation of forest land for developmental purposes to fulfil basic infrastructural needs of the community.
• In conjunction with the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Settlement Act, 2013 FRA protects the tribal population from eviction without rehabilitation and settlement.
• The Act further enjoins upon the Gram Sabha and rights holders the responsibility of conservation and protection of bio-diversity, wildlife, forests, adjoining catchment areas, water sources and other ecologically sensitive areas.
• The Gram Sabha is also a highly empowered body under the Act, enabling the tribal population to have a decisive say in the determination of local policies and schemes impacting them.
• Thus, the Act empowers the forest dwellers to access and use the forest resources in the manner that they were traditionally accustomed, to protect, conserve and manage forests, protect forest dwellers from unlawful evictions and also provides for basic development facilities for the community of forest dwellers to access facilities of education, health, nutrition, infrastructure etc.

5. LG seeking report on violation is a bid to interfere with assembly functioning – speaker

Subject : Polity

Section: Federalism

Concept :

• The power tussle between the Aam Aadmi Party and the Centre ­appointed Lieutenant ­Governor spread to the Delhi Assembly with the Speaker stating that a report on rule violations sought by Raj Niwas appears to be an “attempt to interfere in the functioning of the Assembly”, as per an official communication
• In Delhi, which is not a full-fledged State, the control over the Services Department, which deals with the transfer and posting of officials, is not with the Delhi government but with the L­G.
• However, the AAP government exerts some influence over the officials through the Assembly committees, which have summoned and questioned Delhi government officials over alleged irregularities and stalling of government projects.
• As per Section 33 of the Government of National Capital Territory of Delhi (Amendment) Act, 2021, “Legislative Assembly shall not make any rule to enable itself or its committees to consider the matters of the day­ to­ day administration of the Capital or conduct inquiries in relation to the administrative decisions.”

Section 33 in the Government of National Capital Territory Of Delhi Act, 1991

(1) The Legislative Assembly may make rules for regulating, subject to the provisions of this Act, its procedure and the conduct of its business: Provided that the Lieutenant Governor shall, after consultation with the Speaker of the Legislative Assembly and with the approval of the President, make rules–

(a) for securing the timely completion of financial business;

(b) for regulating the procedure of, and the conduct of business in, the Legislative Assembly in relation to any financial matter or to any Bill for the appropriation of moneys out of the Consolidated Fund of the Capital;

(c) for prohibiting the discussion of, or the asking of questions on, any matter which affects the discharge of the functions of the Lieutenant Governor in so far as he is required by or under this Act or any law to act in his discretion.

(2) Until rules are made under sub- section (1), the rules of procedure and standing orders with respect to the Legislative Assembly of the State of Uttar Pradesh in force immediately before the commencement of this Act shall have effect in relation to the Legislative Assembly subject to such modifications and adaptations as may be made therein by the Lieutenant Governor.

For further notes on Government of National capital territory of delhi act – https://optimizeias.com/government-of-national-capital-territory-of-delhi-act-1991-gnctd-act/

6. Bibi ka maqbara and history of Aurangabad

Subject : History

Section: Art and Culture

Concept :

Bibi ka maqbara

• It is a famous 17th century Mughal-era monument in the city of Aurangabad, Maharashtra.
• It was commissioned by Emperor Aurangzeb in 1660 in the memory of his wife Dilras Banu Begum.
• The structure is known as the ‘Taj of the Deccan’ because of its striking resemblance to the Taj Mahal.
• The domes, minarets and the marble screens inside are built in marble.

Aurangabad

• Aurangabad was founded in 1610 by Malik Ambar, the Siddi general of the Nizamshahi dynasty of Ahmednagar.
• The city was named Khirki or Khadki at the time, and its name was changed to Fatehpur by Malik Ambar’s son Fateh Khan following Malik Ambar’s death in 1626.
• In 1653, the Mughal Emperor Aurangzebinvaded the Deccan and set up his capital in the city, which he renamed Aurangabad.
• The city has borne the association of its name with Aurangzeb ever since.
• Chhattrapati Sambhaji Maharaj, the son and successor of Chhattrapati Shivaji Maharaj, was tortured and killed in brutal fashion on Aurangzeb’s orders in 1689.

Note : Maharashtra government renamed Aurangabad city as Shambhaji Nagar.

7. Combining social welfare and capital market through SSE

Subject : Economy

Section: Capital Market

Concept :

About Social Stock Exchange:

• The SSE would function as a separate segment within the existing stock exchange and help social enterprises raise funds from the public through its mechanism.
• It would serve as a medium for enterprises to seek finance for their social initiatives, acquire visibility and provide increased transparency about fund mobilisation and utilisation.
• Retail investors can only invest in securities offered by for-profit social enterprises (SEs) under the Main Board.
• In all other cases, only institutional investors and non-institutional investors can invest in securities issued by SEs.

Who will be eligible to be registered or listed on the SSE?

• Any non-profit organisation (NPO) or for-profit social enterprise (FPSEs) that establishes the primacy of social intent would be recognised as a social enterprise (SE).
• Recognition of social enterprise would make the entity eligible to be registered or listed on the SSE.
• As per the SEBI’s regulation, the enterprises must be serving to:
• eradicate either hunger, poverty, malnutrition and inequality;
• promoting education, employability, equality, empowerment of women and LGBTQIA+ communities; working towards environmental sustainability;
• protection of national heritage and art or bridging the digital divide, among other things.
• At least 67% of their activities must be directed towards attaining the stated objective.
• This is to be established by enumerating that, in the immediately preceding three-year period:
• either 67% of its average revenue came from the eligible activities;
• expenditure (in the same proportion) was incurred towards attaining the objective; or
• the target population constitute 67% of the overall beneficiary base.
• Corporate foundations, political or religious organisations or activities, professional or trade associations, infrastructure and housing companies (except affordable housing) would not be identified as an SE.
• Additionally, non-profit organisations (NPOs) would be deemed ineligible should it be dependent on corporates for more than 50% of its funding.

How do non-profit organisations (NPOs) as well as For-Profit Enterprises (FPEs) raise money?

• NPOs can raise money either through issuance of Zero Coupon Zero Principal (ZCZP) Instruments from private placement or public issue, or donations from mutual funds.
• SEBI had earlier recognised that NPOs by their very nature have primacy of social impact and are non-revenue generating.
• Thus, there was a need to provide NPOs a direct access to securities market for raising funds. Hence, ZCZP instruments were launched.
• Another structured finance product available for NPOs is the Development Impact Bonds.
• Upon the completion of a project and having delivered on pre-agreed social metrices at pre-agreed costs/rates, a grant is made to the NPO.
• The donor who makes the grant upon achieving the social metrics would be referred to as ‘Outcome Funders’.
• Since the payment above is on post facto basis, the NPOs would have to also raise money to finance their operations. This is done by a ‘Risk Funder’.
• It is mandatory that the NPO is registered with the SSE for facilitating the issuance.
• For-Profit Enterprises
• It can raise money through:
• issue of equity shares (on main board, SME platform or innovators growth platform of the stock exchange) or
• issuing equity shares to an Alternative Investment Fund including Social Impact Fund or issue of debt instruments.
• For-Profit Enterprises (FPEs) need not register with social stock exchanges before it raises funds through SSE.
• However, it must comply with all provisions of the ICDR Regulations (Issue of Capital and Disclosure Requirements) when raising through the SSE.

Zero Coupon Zero Principal (ZCZP) Instruments

• ZCZP are financial instruments that do not pay periodic interest, but are issued at a discount to their face value and mature at par.
• With its zero-coupon, zero-principal structure, it resembles a debt security like a bond.
• When an entity takes a loan by issuing regular debt security like a bond, it has to make interest payments and the principal when the bond matures.
• But with ZCZP instrument, when an entity issues these securities and raises money, it is not a loan but a donation.
• So, the borrowing entity does not have to pay interest—therefore zero coupon—and it does not have to pay the principal (zero principal) either.

8. Yield Curve Inversion

Subject : Economy

Section: Fiscal Policy

Concept :

Bond yield

• Bond yield is the amount of return an investor realizes on a bond. Required yield refers to the amount of yield a bond issuer must offer to attract investors.
• The money that investors earn is called yield.
• Investors do not have to hold bonds to maturity. Instead, they may sell them for a higher or lower price to other investors, and if an investor makes money on the sale of a bond, that is also part of its yield.

Yield Curve

• A yield curve is a graphical presentation of the term structure of interest rates, the relationship between short-term and long-term bond yields. It is plotted with bond yield on the vertical axis and the years to maturity on the horizontal axis.
• The slope of the yield curve provides an estimate of expected interest rate fluctuations in the future and the level of economic activity.
• A yield curve tells us about the relative cost of short-term and long-term debt.

Inverted yield curve

• An inverted yield curve is just opposite of the normal yield curve (therefore, it is also called abnormal yield curve).
• When the yield for shorter maturities is higher than the yield for longer maturities, the yield curve slopes downward and the graph looks inverted.
• An inverted yield curve is unusual; it reflects bond investors’ expectations for a decline in longer-term interest rates, typically associated with recessions.
• As evident by the blue curve in the chart above, it occurred in 2000 during the dot com bubble.

Normal yield curve

• In general, long-term yields are typically higher than short-term yield due to the higher risk involved in long-term investment. Since this is the most common shape of the yield curve, it is called the normal yield curve.
• The short-term yields are heavily influenced by central banks such as US Federal Reserve and the long-term yields are a function of the expected short-term interest rates in future and the market’s assessment of the inherent risk.
• Normal yield curve typically exist when an economy is neither in a recession nor there is any major risk of overheating.
• The normal shape of the yield curve is upward sloping, i.e. short term yields (yields of short term bonds) are lower than long term yields.

How did Indian G-sec yields invert recently?

• The G-sec yield curve became inverted at the Friday weekly auction last week against the similar phenomenon in the US. and RBI accepting banks’ demand for higher yield at the auction for the medium-term G-Sec.
• But there was good demand for the longer-term G-Sec from insurance companies and provident funds at a relatively lower yield.
• At the last auction, the cut-off yield of the 2036 paper came in at 7.4527 per cent, while that of the 2062 paper came in at 7.3822 per cent. So, the yield curve became inverted.

What does it imply?

• Experts say yield curve inversion could denote an impending economic recession or slowdown.
• However, this phenomenon may be short-lived once the demand for medium papers from banks increases.
• Currently, banks are demanding higher yields for medium-term G-Secs as a hedge against the likelihood of the rate-setting panel going in for a rate hike at its next meeting to tackle the sticky core inflation. However, after a year or so, the expectation is that there could be rate cuts to support the economy.
• Twenty-nine countries, including the US, Canada, Germany, Singapore and France, have a ‘ totally inverted yield curve’.

What steps is RBI taking to correct the curve?

• The central bank will try to ensure that the yield curve slopes upwards as the tenor of G-Secs increases.
• Due to banks’ risk aversion for medium-term G-Secs, RBI, in consultation with the government, announced a revised calendar for March for the auction of Government of India Treasury Bills, increasing the demand for these securities.
• The government will be borrowing ₹1.95-lakh crore next month via T-Bills against ₹1.45-lakh crore notified in the earlier calendar.

9. Technology Upgradation Fund Scheme

Subject : Schemes

Section :Industry

Concept :

• Tiruppur Exporters’ Association has urged the Centre for a new Technology Upgradation Fund Scheme retrospectively from April 1, 2022, to extend the interest benefit to the exporting units.
• The exporting units were expecting the new TUF scheme to come into effect from April 1, 2022, immediately after the expiry of the Amended Technology Upgradation Fund Scheme on March 31, 2022.

Amended Technology Up-gradation Fund Scheme (ATUFS)

• The Ministry of Textiles had introduced Technology Upgradation Fund Scheme (TUFS) in 1999 as a credit linked subsidy scheme.
• Objective:
  • modernization and technology up-gradation of the Indian textile industry,
  • promoting ease of doing business,
  • generating employment and promoting exports.
• Since then, the scheme has been implemented in different versions.
• The ongoing ATUFS has been approved in 2016 and implemented through the web based iTUFS platform.
• Capital Investment Subsidy is provided to benchmarked machinery installed by the industry after physical verification.
• ATUFS was approved for a period from 2015-16 to 2021-22 with an allocation of Rs. 17,822 crore
• The scheme is administered with a two stage monitoring mechanism by Technical Advisory-cum-Monitoring Committee (TAMC) and Inter-Ministerial Steering Committee (IMSC).
• In 2019, IMSC decided to introduce physical verification of machinery and computation of subsidy before releasing committed liability under previous versions of the scheme.

10. Debate over Origin of Corona Virus

Subject: Science and technology

Section :Biotechnology

Concept:

• The debate is over whether the coronavirus emerged naturally—possibly jumping from an animal host to humans in the same way as the SARS-1 virus in 2002 — or accidentally ‘escaped’ or ‘leaked’ from the Wuhan Institute of Virology (WIV), the institute in the city where researchers had been working with coronaviruses for several years.
• The fact that the first infections were reported from Wuhan, is the basis for the assertion that an engineered virus had spilled over from the laboratory.
• Over the subsequent months, plenty of scientific facts were unearthed, which can be explained far better, and with much greater probability, by the ‘lableak’theory.
• In March 2020, another set of scientists claimed that their analysis “clearly” showed that the virus was “not a laboratory construct or a purposefully manipulated virus”.
• While the evidence for a ‘lab leak’ is still not conclusive — and the recent disclosures by US agencies are unlikely to change that it does remain the far simpler explanation, not least because unlike in the case of SARS_1 or MERS,the theory of ‘natural emergence’ of the virus is yet to be established more than three years after the outbreak.
• In fact, the evidence for natural emergence continues to be far more disingenuous.

11. China warns Elon Musk after COVID lab leak comments

Subject: Science and Technology

Section :Biotechnology

Context: Musk had been responding to suggestions that Dr. Anthony Fauci – the former Chief Medical Advisor to President Joe Biden – had ‘funded the development of COVID-19’. The original post had accused Fauci of being involved in the development of the deadly virus because he had funded ‘gain-of function research’ at the lab in Wuhan.

Gain-of-function research

• Gain-of-function research (GoF research or GoFR) is medical research that genetically alters an organism in a way that may enhance the biological functions of gene products.
• Gain-of-function research refers to the serial passaging of microorganisms to increase their transmissibility, virulence, immunogenicity, and host tropism by applying selective pressure to a culture.
• This research is intended to reveal targets to better predict emerging infectious diseases and to develop vaccines and therapeutics.
• In virology, gain-of-function research is usually employed with the intention of better understanding current and future pandemics.
• The term first gained a wide public audience in 2012, after two groups revealed that they had tweaked an avian influenza virus, using genetic engineering and directed evolution, until it could be transmitted between ferrets.
• A complementary approach — loss-of-function — involves disabling a gene to see what happens to organisms that lack it.
• Most virologists say that the coronavirus probably emerged from repeated contact between humans and animals, potentially in connection with wet markets in Wuhan, China, where the virus was first reported.

12. ‘Anmol Jeevan Abhiyan’

Subject : Schemes

Section : Environment

Context: The ‘Anmol Jeevan Abhiyan’ (Precious Life Campaign) launched in Barmer recently has encouraged village panchayats and owners of houses to make the structural addition of hand pumps and locked covers on tankas (associated with local deities) or sacred forest groves 10 km away from the village.

Traditional Water Conservation Systems in India:

13. Gross Domestic Product

Subject : Economy

Section : National Income

Context: The Ministry of Statistics and Programme Implementation (MoSPI) Tuesday released economic growth data—Gross Domestic Product (GDP) and Gross Value Added (GVA)—for the third quarter (Q3 or October to December) of the current financial year (2022-23 or FY23), as well as the so-called Second Advance Estimates (SAEs) for the full year

Concept :

GDP : The GDP measures the monetary value of all “final” goods and services—that is, those that are bought by the final user—produced in a country in a given period of time (say a quarter or a year).

Sub-components of GDP:

Knowledge about them helps us understand how sustainable India’s economic recovery is. Broadly speaking, GDP has four engines of growth in any economy. 

• Private Final Consumption Expenditure- PFCE. : Private Final Consumption Expenditure (PFCE) or the money spent by people on goods and services for personal consumption; this is the biggest contributor of GDP, accounting for almost 55%-60%
• Gross Fixed Capital Formation or GFCF: Government Final Consumption Expenditure (GFCE) or the money spent by governments towards its daily needs; this accounts for 10% of GDP.
• Government Final Consumption Expenditure (GFCE): Gross Fixed Capital Formation (GFCF) or the money spent by private firms and governments towards building productive capacities (investments);this is accounts for 30%-32% of GDP
• Net Exports- (Export-Import) i.e. NXNet of exports and imports; this is typically negative impulse to GDP because imports are more than exports, implying money going out of thecountry

India’s context: – share of components in total GDP:

Private Final Consumption Expenditure (56%)>Gross Fixed Capital Formation (32%) > Government Final Consumption Expenditure (11%)>Net export. NX is the smallest engine of GDP growth and is often negative.

Alternatives-

Often, overall GDP does not tell us the full picture. To get a better understanding of how an average Indian is affected the GDP datasheet also looks at per capita income (or p.c. GDP) and per capita expenditure or per capita PFCE.

• Per capita income is a measure of the amount of money earned per person in a nation or geographic region. Per capita income can be used to determine the average per-person income for an area and to evaluate the standard of living and quality of life of the population. Per capita income for a nation is calculated by dividing the country’s national income by its population.
• Per capita expenditures refers to the market value( price at which they are sold in the market) of all goods purchased by households divided by population of the country. Durable goods like tv, computer, washing machine, AC. Purchase of properties or capital goods is not included but rent paid for rented houses is included and money paid for services is also included.

GDP and GVA:

For any financial year, the two main variables of national income are GDP and GVA (or Gross Value Added):

The GDP calculates India’s national income by adding up all the expenditures in the economy while,

The GVA calculates the national income from the supply side by looking at the value-added in each sector of the economy. GVA sub-components:

• Agriculture, forestry and fishing
• Mining and quarrying
• Manufacturing
• Electricity, gas, water supply and other utility services
• Construction
• Trade, hotel, transport, communication and services related to Broadcasting
• Financial, real estate and professional services
• Public administration, defence and other services.

While both the variables measure national income, they are linked as follows:

GDP = (GVA) + (Taxes earned by the government) — (Subsidies provided by the government).

• As such, if the government earned more from taxes than what it spent on subsidies, GDP will be higher than GVA.
• If, on the other hand, the government provided subsidies in excess of its tax revenues, the absolute level of GVA would be higher than the absolute level of GDP.

14. Five S-400 regiments expected to be delivered by early-2024

Subject: International Relations

Section: Msc

Context: India has contracted five S-400 regiments under a $5.43 billion or ₹40,291 crore deal as per a conversation rate of ₹74.2 against the dollar at the time, signed in October 2018. The deal has been delayed from the start over payment issues. With the looming threat of U.S. sanctions under CAATSA (Countering America’s Adversaries Through Sanctions Act), the two sides had worked out payments through the rupee-rouble exchange. The delivery schedule was slightly delayed following delays in making the 15% advance of the $5.43 billion when the deal was signed, as it was to be executed in the rupee-rouble method.

S-400

• The S-400 Triumph, (NATO calls it SA-21 Growler), is a mobile, surface-to-air missile system (SAM) designed by Russia.
• It is the most dangerous operationally deployed modern long-range SAM (MLR SAM) in the world, considered much ahead of the US-developed Terminal High Altitude Area Defense system (THAAD).
• The system can engage all types of aerial targets including aircraft, unmanned aerial vehicles (UAV) and ballistic and cruise missiles within the range of 400km, at an altitude of up to 30km. The system can track 100 airborne targets and engage six of them simultaneously.
• The S-400 Triumf air defence system integrates a multifunction radar, autonomous detection and targeting systems, anti-aircraft missile systems, launchers, and command and control centre. It is capable of firing three types of missiles to create a layered defence.

CAATSA:

• Countering America’s Adversaries through Sanctions Act (CAATSA) was passed unanimously by the US Congress and signed reluctantly by US President Donald Trump. Enacted on August 2, 2017, its core objective is to counter Iran, Russia and North Korea through punitive measures.

15. Press Council issues advisory on ‘paid news’

Subject : Polity

Section: National Body

Context: The Press Council of India (PCI) on Wednesday advised the print media to follow the norms of Journalistic Conduct-2022 on ‘paid news’ during the elections in various States.

Direction of PCI:

• Newspapers should not misconstrue or misquote the statements given by any leader, the PCI said the statements quoted in editorial should project the true spirit of what was being tried to be conveyed by them.

What constitutes paid news?

• Columns of news items which largely indicate names of voters on caste basis and supporters of the candidate of particular political party, such tenor and manner of presentation of news establish the report to be paid news
• While covering news on election, the newspapers are advised to ensure balance in publishing report/interview of candidates. During the course of election, subject to conditions laid down by the Election Commission of India, newspapers are free to make an honest assessment of prospects of candidates or the parties and its publication would not be paid news so long it is not established that consideration passed on for such publication
• Newspapers have also been told not to publish any news survey predicting the victory of any political party without verification of it.
• An attempt to influence the voters by projecting the contesting candidate with all virtues during the election is paid news. A news item giving negative aspect of a candidate and at the same time the positive aspect of candidate of other political party without any basis clearly shows that it is paid news.

PCI

• The Press Council of India was first set up in the year 1966 by the Parliament on the recommendations of the First Press Commission.
• Aim: To preserve the freedom of the press and maintain and improve the standards of the press in India.
• The present Council functions under the Press Council Act, 1978. It is a statutory, quasi-judicial authority functioning as a watchdog of the press, for the press and by the press.
• Composition: The PCI consists of a chairman and 28 other members.
  • The Chairman is selected by the Speaker of the Lok Sabha, the Chairman of the Rajya Sabha and a member elected by the PCI.
• Powers: It adjudicates the complaints against and by the press for violation of ethics and for violation of the freedom of the press, respectively.
  • The Press Council of India is responsible for enquiring into complaints received.
  • It may summon witnesses and take evidence under oath, demand copies of public records to be submitted, even issue warnings and admonish the newspaper, news agency, editor or journalist.
  • Decisions of the PCI are final and cannot be appealed before a court of law.
• Limitations of PCI: 
  • They cannot penalize newspapers, news agencies, editors and journalists for violation of the guidelines.
  • The PCI only overviews the functioning of print media. It can enforce standards upon newspapers, journals, magazines and other forms of print media.
    • It does not have the power to review the functioning of electronic media like radio, television and internet media.