Daily Prelims Notes 21 June 2024

Daily Prelims Notes

21 June 2024

1. JP Morgan Forecasts Doubling of Foreign Holdings in Indian Government Bonds

Sub: Economy

Sec: EXTERNAL Sector

Overview:

• JP Morgan predicts non-resident holdings of India Government Bonds (IGBs) to nearly double from the current 2.5% to over 4.4% in the next year.
• This prediction is due to proactive measures by Indian authorities to enhance the accessibility of the IGB market for foreign investors.

Index Inclusion:

• India will join JP Morgan’s flagship Emerging Market Local Currency Government Bond indices (GBI-EM GD) starting June 28, 2024, over a phased period of 10 months.
• Only bonds under the Fully Accessible Route (FAR) are eligible for this index. Currently, 27 FAR-designated IGBs meet the inclusion criteria.

Market Reforms:

• JP Morgan, highlighted that India’s market reforms have improved the accessibility of its domestic market for global investors, making IGBs eligible for index inclusion.
• These reforms include better regulatory frameworks and increased market transparency.

Expected Inflows:

• With index inclusion, foreign inflows are expected to be between $20 billion and $25 billion. This is based on the estimated assets under management (AUM) tracking the GBI-EM GD and the anticipated 10% weight of India in the benchmark.

Duration and Yield:

• India will have the highest duration across the index (7.03 years) compared to the Emerging Market/EM Asia average (5.97 years).
• The yield-to-maturity for Indian bonds is above average at 7.09% versus EM Asia’s 3.98%.

Market Size and Turnover:

• India’s local debt stock is among the largest in emerging markets, with outstanding bonds over $400 billion, second only to China.
• The turnover in Indian local market instruments is significant, with over $350 billion in 2023, accounting for more than 9% of total EM local debt trading volume.

Structural Participation:

• JP Morgan sees ample scope for increased non-resident participation in the local bond market, currently one of the lowest in EM.
• The phased inclusion of Indian bonds in JP Morgan’s GBI-EM Global index is expected to sustain demand for these bonds, as index-tracking funds will need to allocate resources accordingly.

Significance:

• Inclusion of Indian bonds in the JP Morgan index reflects India’s growing significance in the global financial markets.
• Enhanced foreign participation is likely to lead to more liquidity and stability in the Indian bond market, potentially lowering borrowing costs for the Indian government.

Fully Accessible Route (FAR) by RBI 

Introduction:

• Objective: To enable non-residents to invest in specified Government of India dated securities without any investment restrictions.
• Implementation Date: Effective from April 1.
• Specified Securities: Government Securities as notified by the RBI for investment under the FAR route.
• Eligible Securities: All new issuances of Government securities (G-secs) of 5-year, 10-year, and 30-year tenors.
• Investment Ceilings: Non-resident investors can invest in specified government securities without being subject to any investment ceilings.

Existing Investment Routes:

• Medium Term Framework (MTF):
• Introduction: Introduced in October 2015.
• Purpose: For Foreign Portfolio Investment (FPI) in Central Government Securities (G-secs) and State Government Securities (SDLs).
• Nature: FPI includes securities and other financial assets passively held by foreign investors.
• Voluntary Retention Route (VRR):
• Purpose: Encourages FPIs to undertake long-term investments in Indian debt markets.

Benefits of FAR:

• Ease of Access: Simplifies the process for non-residents to invest in Indian government securities.
• Global Bond Indices: Facilitates the inclusion of Indian G-secs in global bond indices.
• Attract Large Funds: Helps attract substantial funds from major global investors, including pension funds.
• Stable Foreign Investment: Encourages the inflow of stable foreign investment in government bonds.

In summary, the Fully Accessible Route (FAR) introduced by the RBI significantly opens up Indian government securities to non-resident investors, potentially boosting foreign investment and aiding the inclusion of Indian bonds in global indices. This new route complements existing frameworks like the MTF and VRR, aiming to foster a more robust and inclusive bond market in India.

Bond Yield

• Bond Yield: The return an investor expects to receive each year over the bond’s term to maturity.
• Factors Influencing Bond Yield: Partially depends on coupon payments and the prevailing market price of the bond.

Coupon Payments:

• Coupon Payments: Periodic interest income obtained as a reward for holding bonds.
• Face Value: Bondholders receive the bond’s face value at the end of the bond’s life.
• Market Trading: Bonds may be bought at par value, discount, or premium as they trade in the secondary market.

Bond Yield vs. Price:

• Inverse Relationship: Price and yield are inversely related.
  • As the price of a bond increases, its yield decreases.
  • As the yield increases, the price of the bond decreases.

Example:

• Interest Rate Fall:
  • New bonds offer lower interest payments.
  • Existing bonds with higher interest payments become more valuable.
  • Price of existing bonds increases.
  • As bond prices increase, the yield for new investors decreases because the return on purchasing the bond is lower.

Coupon Amount: The annual interest rate paid on a bond, expressed as a percentage of the face value.

Coupon Rate: The sum of coupons paid in a year divided by the face value of the bond.

Payment Frequency: Coupons are paid from the issue date until maturity.

2. SBI Chairman Khara Advocates for Tax Relief on Interest Income in Upcoming Budget

Sub: Economy

Sec: Monetary Policy

Key Proposal:

• SBI has proposed tax relief on interest income.

The rationale is that this relief would help banks attract more savings which could then be utilized for funding long-term infrastructure projects.

Current Tax Scenario:

• Banks are required to deduct tax when the interest income from deposits across all branches exceeds ₹40,000 in a year.
• For savings accounts, interest earned up to ₹10,000 is exempt from tax.

Khara’s Argument:

• Providing tax relief on interest earnings in the Budget would incentivize depositors.
• This, in turn, would enable the banking sector to mobilize deposits for capital formation in the country.

Budget Expectations:

• The Full Budget for 2024-25 is expected to be presented by Finance Minister Nirmala Sitharaman next month.
• Given the current economic growth rate, Khara anticipates a 14-15% loan growth for FY24-25.

Significance:

• Tax relief on interest income could potentially enhance the savings rate among the population.
• Increased savings would provide banks with more funds to support long-term infrastructure projects, crucial for economic development.

Conclusion:

• Khara’s proposal highlights the need for fiscal measures that could boost the banking sector’s capacity to fund critical infrastructure, thereby fostering economic growth and development.

3. Credit Card Transactions Abroad Under Scanner Again

Sub: Economy

Sec: External Sector

Key Points:

• Government Focus: With the increase in remittances under the Liberalised Remittance Scheme (LRS), international credit card spending is now a significant area of government scrutiny.
• Current Status: Although on the government’s radar, a decision regarding the implementation date for bringing international credit card transactions under LRS has yet to be finalized.

Background:

• LRS Coverage: Debit cards are already included under LRS, while international credit card transactions were temporarily excluded from being counted as LRS and subject to Tax Collected at Source (TCS).
• Previous Notification: In May, the Finance Ministry issued a notification to include credit cards under LRS with a 20% TCS. However, implementation was postponed to allow banks and card networks to develop the necessary IT solutions.

LRS Limits and Provisions:

• Remittance Limit: Under LRS, all residents, including minors, can remit up to $250,000 per financial year for permissible current or capital account transactions.
• Potential Inclusion: Reports indicate that the Reserve Bank of India (RBI) has instructed banks to prepare for the inclusion of international credit card spending in LRS.

Significance:

• Monitoring and Regulation: As international travel and spending increase, the government aims to better monitor and regulate the outflow of funds through credit card transactions abroad.
• Tax Implications: Bringing international credit card transactions under LRS will subject them to TCS, ensuring better tax compliance and monitoring.

Conclusion:

• The inclusion of international credit card transactions under LRS reflects the government’s efforts to tighten control over outbound remittances and ensure comprehensive financial oversight.

Liberalised Remittance Scheme (LRS)

About:

• Introduction: This scheme was introduced by the Reserve Bank of India in 2004.
• Eligibility: All resident individuals, including minors, are allowed to remit up to USD 250,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.

Not Eligible:

• The scheme is not available to corporations, partnership firms, Hindu Undivided Families (HUF), Trusts, etc.
• Frequency of Remittances: No restrictions on frequency, but once the limit of USD 250,000 is reached in a financial year, no further remittances can be made under LRS.

Uses of Remitted Money:

• Expenses: Can be used for private or business travel, medical treatment, study, gifts and donations, and maintenance of close relatives.
• Investments: Investment in shares, debt instruments, and immovable properties overseas.
• Foreign Currency Accounts: Individuals can open, maintain, and hold foreign currency accounts with banks outside India for transactions permitted under the scheme.

Prohibited Transactions:

• Specific Prohibitions: Any purpose prohibited under Schedule-I (like purchasing lottery tickets, proscribed magazines, etc.) or restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000.
• Foreign Exchange Trading: Trading in foreign exchange abroad.
• High-Risk Countries: Capital account remittances to countries identified by FATF as “non-cooperative countries and territories”.
• Terrorism Risk: Remittances to individuals and entities posing significant terrorism risks as advised by the Reserve Bank.

Requirements:

• PAN Requirement: It is mandatory for the resident individual to provide their Permanent Account Number (PAN) for all LRS transactions made through Authorized Persons.

Tax Collected at Source (TCS) 

Definition:

• Seller’s Tax: TCS is the tax payable by a seller, collected from the buyer at the time of sale of specified goods or services.

Governance:

• Section 206C: Governed by Section 206C of the Income-tax Act, specifying applicable goods/services and TCS rates.
• Goods/Services: Applicable to goods/services like liquor, timber, tendu leaves, scrap, minerals, motor vehicles, parking lots, toll plazas, mining, quarrying, and foreign remittance under LRS.

Requirements:

• TAN: The seller must have a Tax Collection Account Number (TAN) to collect and deposit TCS with tax authorities.
• TCS Certificate: The seller must issue a TCS certificate to the buyer within a specified time, showing the amount of tax collected and deposited.
• Credit Claim: The buyer can claim credit for the TCS amount when filing their income tax return.

Foreign Exchange Management Act (FEMA), 1999

Overview:

• Legal Framework: Provides the legal framework for the administration of foreign exchange transactions in India.
• Enforcement: Came into force on 1st June 2000.

Transaction Classification:

• Current Account Transactions:
  • Definition: Transactions by a resident that do not alter their assets or liabilities outside India.
  • Examples: Payments related to foreign trade, travel, education, etc.
• Capital Account Transactions:
  • Definition: Transactions that alter a resident’s assets or liabilities outside India.
  • Examples: Investment in foreign securities, acquisition of immovable property abroad, etc.

4. Visakhapatnam Port Makes it to Global Top 20 List Riding on Container Performance

Sub: IR

Sec: Int org

Key Highlights:

• Significant Improvement: Visakhapatnam Port leaped from 115th place in 2022 to 19th place in 2023 in the Container Port Performance Index (CPPI).
• Top Performance Metrics:
  • Moves per Crane Hour: 27.5
  • Turnaround Time (TRT): 21.4 hours
  • Minimal Berth Idle Time
• Strong Performance: These metrics indicate high efficiency in handling container ships, significantly influencing customer preference.

Achievements:

• India’s Representation: Nine Indian ports made it to the Global Top 100 in the CPPI 2023.
  • Other Indian Ports in Top 100:
    • Pipavav (41)
    • Kamarajar (47)
    • Cochin (63)
    • Hazira (68)
    • Krishnapatnam (71)
    • Chennai (80)
    • Jawaharlal Nehru (96)
    • Mundra (27) (improved from 48 last year)

Future Goals:

• Expansion Plans: Visakhapatnam Port aims to achieve over a million TEUs for FY 2025-26.
• Collaboration: Strong collaboration with stakeholders is key to future success.

Strategic Importance:

• Hinterland Coverage:
  • Primary: Nepal, North AP, Odisha, Chhattisgarh
  • Secondary: Central AP, Telangana, Bihar, Jharkhand, Nagpur
  • Tertiary: Kanpur, NCR
• Connectivity:
  • Exclusive Port-Road Connectivity: Direct access to NH16 and the Golden Quadrilateral.
  • Upcoming Infrastructure:
    • Raipur–Visakhapatnam Expressway
    • 6-lane Visakhapatnam Economic Corridor
    • Greenfield project for a 464-km stretch
  • Established Rail Connectivity: Terminal to East Coast

Global Hub Initiatives:

• VCT as Global Transshipment Hub:
  • Organizing trade meets across India and Nepal to attract cargo.
  • Building a strong ecosystem with customs and railways.
  • Enhancing seamless road and rail connectivity.

Conclusion:

The Container Port Performance Index (CPPI), developed by the World Bank and S&P Global Market Intelligence, measures the resilience, efficiency, and overall performance of ports. Visakhapatnam Port’s dramatic rise in ranking showcases its operational excellence and strategic importance in global maritime trade.

Container Port Performance Index (CPPI) Overview

• The Container Port Performance Index (CPPI) is a comprehensive benchmarking tool developed by the World Bank and S&P Global Market Intelligence.
• It assesses the efficiency, resilience, and overall performance of container ports worldwide.

Key Metrics Assessed:

• Moves per Crane Hour: This metric measures the productivity of port cranes in handling containers.
• Turnaround Time (TRT): The average time a ship spends in port from arrival to departure, indicating the port’s operational efficiency.
• Berth Idle Time: The time a berth remains unutilized, which affects the overall efficiency of the port.

Purpose and Significance:

• Global Benchmarking: Provides a global ranking of container ports, highlighting the top-performing ports in terms of operational efficiency.
• Performance Improvement: Ports use the CPPI to identify areas for improvement and enhance their operational practices.
• Investment Decisions: Investors and stakeholders use the CPPI for informed decision-making regarding port investments and development projects.
• Competitiveness: Helps ports enhance their competitiveness by aligning with global best practices and standards.

5. Sickle cell patients need better access to modern medication

Sub: Science and tech

Sec: Health

What is Sickle Cell Anemia(SCD)?

• Sickle cell disease, a chronic condition, encompasses a group of inherited disorders affecting haemoglobin, the protein responsible for oxygen transport in the body.
• Red blood cells possess a disc-like shape and are flexible, facilitating smooth movement through blood vessels.
• In SCD, a genetic mutation causes these red blood cells to adopt a crescent or “sickle” shape.
• These sickle-shaped RBCs lead to disruption of blood flow in small vessels and result in numerous complications.

Sickle cell Anemia burden in India:

• SCD affects 20 million people worldwide.
• India grapples with a formidable challenge posed by SCD, with millions affected.
• According to an article by Forbes, India has the second-highest global prevalence of the disease, with 1 in 86 births positive for SCD.
• Patients with SCD suffer a broad spectrum of complications that contributes to their increased morbidity and mortality.
• From end-organ damage and increased infection susceptibility, to stroke and pulmonary complications, the challenges presented by SCD are diverse.

Treatment of the disease:

• After multiple decades where Hydroxyurea was the only disease modifying therapy for SCD, there are now multiple medications that are approved and available.
• After years of symptom management as the treatment strategy, we now can talk about a choice of disease-modifying therapies and disease control.

National Sickle Cell Anaemia Elimination Mission:

• The Indian government initiated the National Sickle Cell Anaemia Elimination Mission in 2023, aiming to eradicate SCD by 2047.
• This initiative entails enhancing awareness, conducting universal screening of approximately seven crore individuals aged 0-40 in affected tribal regions, and providing counselling through collaborative endeavors between central ministries and State governments.

6. ‘School in a box’ for children in Assam flood relief camps

Sub: Science and tech

Sec: Health

Context:

• Flood-affected children are set to get a “school in a box” in model relief camps across Assam.

More on news:

• Rainfall-induced landslides or landslides have killed more people than floods across seven of the eight northeastern States over the last 30 days.

Child-friendly space (CFS) kit:

• Such a box or child-friendly space (CFS) kit containing learning materials and other items to ensure the continuity of education will be provided for each of the 167 model relief camps in the State where floods and rainfall-induced landslides have claimed at least 31 human lives since May.
• The kit designed by UNICEF for Assam has been around for some time, the new-look box caters to the educational needs of children and teenagers aged 6-18 years.
• These resources have at their core the protection of children from harm; the promotion of psychosocial well-being; and the engagement of community and caregiver capacities.
• This was done after assessing the psychological impact of displacement on children older than 6 years.
• The focus of CHS earlier was on children up to 6 years old. 
• The ‘school in a box’ concept covers older children and provides for them notebooks, drawing books, pencils and other learning materials to help them overcome the trauma of losing their homes or a parent or a family member.
• The training is being conducted at the block and circle levels to equip Anganwadi workers and other grassroots stakeholders with the skill to maintain the education continuity of children in the model relief camps.
• Officials are also being trained to run the relief camps smoothly through initiatives such as installing sanitary napkin vending machines with incinerators for women and adolescent girls in the relief camps.

About UNICEF:

• UNICEF is a special program of the United Nations (UN) devoted to aiding national efforts to improve the health, nutrition, education, and general welfare of children.
• UNICEF was created in 1946 as International Children’s Emergency Fund (ICEF) by the UN relief Rehabilitation Administration to help children affected by World War II.
• UNICEF became a permanent part of the United Nations in 1953.
• The name was shortened to United Nations Children Fund but it is still referred to as UNICEF.
• It is mandated by the United Nations General Assembly to advocate for the protection of children’s rights, to help meet their basic needs and to expand their opportunities to reach their full potential.
• UNICEF is guided by the Convention on the Rights of the Child, 1989.

7. Bhartruhari Mahtab appointed pro tem Speaker

Sub: Polity

Sec: Parliament and legislation

Context:

• Seven-term parliamentarian and BJP leader Bhartruhari Mahtab was on June 20 appointed pro-tem Speaker of the Lok Sabha.

More on news:

• Congress accuses Modi government of bypassing convention by ignoring senior-most MP K. Suresh for the post
• The primary job of the pro-tem Speaker is to administer the oath to the newly- elected members of the 18th Lok Sabha and preside over the Lower House till the election of the Speaker.
• The first session of the 18th Lok Sabha will begin on June 24, with newly elected members taking oath/affirmation until June 25.
• The election of Speaker is scheduled to take place on June 26.

About Pro term speaker:

• The President is pleased to appoint Shri Bhartruhari Mahtab, Member, Lok Sabha as Speaker Pro term under Article 95(1) of the Constitution to perform the duties of Speaker till election of the Speaker.
• The President of India appoints the Protem Speaker. 
• The first meeting after the election when the Speaker and the Deputy Speaker are selected by members of the Parliament is held under the pro tem Speaker.
• The newly elected members of the 18th Lok Sabha will make oath or affirmation before the pro tem Speaker.
• As per convention, the MP who has served the maximum terms is appointed pro tem Speaker for the first two days when oath is administered to all newly elected MPs.

8. Tamil Nadu hooch tragedy: Why spurious liquor can be deadly

Sub: Science and tech

Sec: Health

Context:

• At least 34 people have died, and around 100 others have been hospitalized after consuming hooch, or spurious liquor, in Tamil Nadu’s Kallakurichi.

What is hooch?

• Hooch is a commonly used term for poor quality alcohol, derived from Hoochinoo, a native Alaskan tribe that was known to produce very strong liquor. 
• Unlike branded liquor which is produced in factories with sophisticated equipment and rigorous quality control, hooch is made in much more crude settings.
• Hooch is alcohol meant to intoxicate.
• But if prepared incorrectly, it can kill. 
• It is near impossible to tell whether hooch is safe to consume without actually drinking it.

How is hooch produced?

All alcohol is produced using two basic processes: fermentation and distillation.

Fermentation: 

• When heated, yeast reacts with sugar (from grain, fruits, sugarcane, etc.) to ferment and produce a mixture containing alcohol.
• This is an age-old process, used to create beverages like beer or wine. But it comes with a basic limitation. 
• As fermentation continues, and alcohol levels rise, conditions in the mixture become toxic for the yeast.
• Eventually, no more fermentation can take place. 
• Thus, to make anything stronger (above 14-18% ABC), beverages need to be distilled.

Distillation: 

• This is the process of physically separating alcohol from a fermented mixture using evaporation and condensation. 
• Since different parts of the mixture have different boiling points, heating it up to the correct temperature makes it possible to separate only the alcohol from the water and other remnants. Distilled beverages, or spirits, are far more potent than any fermented beverage.
• Hooch is produced using distillation of a fermented mixture, generally of locally available yeast, and sugar or fruit (often fruit waste). 
• Multiple rounds of distillation are carried out, to produce more potent alcohol.

Why can hooch be dangerous?

• There is an inherent risk associated with the crude methods of hooch production.
• The fermented mixture which is distilled contains more than just consumable alcohol (ethanol).
• It also contains methanol, an industrial alcohol which is highly toxic for human beings.
• Non-distilled alcoholic beverages like wine contain relatively harmless trace amounts of methanol.
• But during the distillation, both ethanol and methanol are concentrated. 
• If done incorrectly, distillation can lead to an end product which contains high quantities of toxic methanol.
• Methanol has a boiling point of 64.7 °C, lower than that of ethanol 78.37 °C. 
• During distillation, when the mixture reaches 64.7 °C, the pot collecting concentrated alcohol begins to fill up with a highly toxic chemical.
• This must be discarded for the end product to be safe. 
• It is crucial to maintain a temperature of above 78.37 °C but below 100°C (the boiling point of water) to obtain safe-to-consume yet potent liquor.
• Commercial distillers have sophisticated equipment and multiple checks to maintain the accuracy of the process.
• However, hooch-makers have no temperature control. 
• This means that the process of distillation lacks the accuracy that is crucial to make it safe and effective.

What other risks does hooch pose?

• Beyond the risk of improperly prepared alcohol lies the risk of adulteration.
• Given the issues with conducting distillation without proper equipment, hooch-makers often err on the side of caution, producing an end-product that is safe, but watered down (the mixture is overboiled). 
• To compensate for this, adulterants are added.
• Some of the known ones include organic waste, battery acid, and industry grade methanol, all of which are highly toxic.
• Adding the wrong kinds of adulterants in the wrong quantities increases the risks associated with hooch.
• First, it can make hooch far more intoxicating, producing effects such as blackouts, memory loss, and high drunkenness even on consumption of low quantities of liquor. 
• Second, in extreme cases, when adulterants like methanol are present in high concentrations, the liquor is unfit to consume and can be deadly.

How does hooch impact the body? How does treatment work?

• Methanol or methyl alcohol can cause impaired vision, high toxicity and metabolic acidosis, a condition in which the body produces excessive acid that cannot be flushed out by kidneys.
• The treatment for this is to intravenously administer Fomepizole and ethanol.
• Fomepizole can be expensive and unavailable in many parts of India.
• In such cases, doctors administer a mixture of ethanol and water (1:1 ratio).
• Ethanol inhibits methanol’s conversion into toxins and helps in flushing it out of the body either naturally or through dialysis.

What is Methanol Poisoning?

• Methanol toxicity (also methanol poisoning) is poisoning from methanol, characteristically via ingestion.
• Symptoms may include a decreased level of consciousness, poor or no coordination, vomiting, abdominal pain, and a specific smell on the breath.
• Decreased vision may start as early as twelve hours after exposure.
• Long-term outcomes may include blindness and kidney failure.
• Methanol poisoning most commonly occurs following the drinking of windshield washer fluid.
• This may be accidental or as part of an attempted suicide.

9. PFC, JICA line up to fund ₹76,220-cr. Vadhavan Port project

Sub: Geography

Sec: Eco Geo

Context:

• Indian and global financial institutions, including the Power Finance Corporation (PFC), Rural Electrification Corporation, and Japan International Cooperation Agency (JICA), have expressed interest in funding the ₹76,220-crore Vadhavan Port project.

Details:

• The project will be developed by Vadhvan Port Project Ltd. (VPPL), a special-purpose vehicle formed by the Jawaharlal Nehru Port Authority (JNPA) and Maharashtra Maritime Board (MMB).
• The project will be developed in two phases under the landlord model, with a significant portion of the infrastructure, including breakwater, dredging, and rail/road linkages, costing ₹43,622 crore.
• This includes contributions from the Ministry of Railways, the Ministry of Road Transport and Highways/National Highways Authority of India, and Maharashtra State Electricity Distribution Company Ltd.
• The remaining ₹37,244 crore will be funded by private operators of various port facilities. The total debt requirement is estimated at ₹27,283 crore.
• The port, strategically located to enhance maritime traffic and reduce logistics costs, will feature nine container terminals, multiple berths for various cargo types, and will increase the national container handling capacity by 23.2 million TEUs, accommodating mega container vessels.

About Vadhavan Transhipment Port:

• Vadhavan Transshipment Port is a proposed new port that is going to be the country’s 13th major port.
• Situated near the town of Dahanu, in the Palghar district of Maharashtra, the state will have its 3rd port and the country’s one of the six mega ports. 

What is the Landlord Model of Port?

• In this model, the publicly governed port authority acts as a regulatory body and as a landlord, while private companies carry out port operations—mainly cargo-handling activities.
• Here, the port authority maintains ownership of the port while the infrastructure is leased to private firms that provide and maintain their own superstructure and install their own equipment to handle cargo.
• In return, the landlord port gets a share of the revenue from the private entity.

Source: TH

10. Chad eliminates sleeping sickness as a public health problem

Sub: Science and tech

Sec: Health

Context:

• Chad becomes the first country in 2024 and the 51st globally to eliminate a neglected tropical disease (NTD) – the gambiense form of human African trypanosomiasis (HAT), also known as sleeping sickness.
• To date, WHO has validated the elimination of the gambiense form of HAT in seven countries: Togo (2020), Benin (2021), Ivory Coast (2021), Uganda (2022), Equatorial Guinea (2022), Ghana (2023) and Chad (2024).
  • Additionally, the rhodesiense form of the disease has been eliminated as a public health problem in Rwanda.

About ‘Sleeping sickness’:

• Scientific name: Human African trypanosomiasis (HAT)
• Cause: HAT is caused by protozoan parasites spread via infected tsetse flies.
• Impact: Typically fatal if untreated, causing fatigue, headaches, and in severe cases, coma.
• Types of HAT:
  • Trypanosoma brucei gambiense (92% of cases)
  • Trypanosoma brucei rhodesiense (8% of cases)

Chad’s Effort to Eliminate Sleeping Sickness:

• Before 2002, the Mandoul region faced a significant burden of sleeping sickness.
• Chad worked with WHO and other partners on a comprehensive strategy.
• Key Focus Areas:
  • Early Diagnosis and Treatment: Improved access to healthcare in remote areas and introduction of new, effective drugs.
  • Tsetse Fly Control: Implemented targeted programmes using traps and insecticides to kill tsetse flies.

Results and Verification:

• Case numbers dropped significantly, with no new infections in recent years.
• WHO Assessment: Rigorous verification of data on case surveillance, diagnostic testing, and vector control measures.
• Chad was declared free of gambiense sleeping sickness as a public health problem in April 2024.

Significance and Future Steps:

• Chad’s achievement serves as an inspiration for other countries battling NTDs.
• Highlights the importance of targeted interventions, improved diagnostics, and community engagement.
• Ongoing surveillance and control measures are essential to prevent resurgence.
• Chad can now target other neglected tropical diseases prevalent in the country.
• Global NTD Elimination Goal: Aim to eliminate at least 100 NTDs by 2030.

Chad:

• Chad is an independent state at the crossroads of North and Central Africa.
• The landlocked country is bordered by Libya to the north, Sudan to the east, the Central African Republic to the south, Cameroon to the southwest, Nigeria to the southwest (at Lake Chad), and Niger to the west.

Source: DTE

11. Limbless amphibian added to Kaziranga’s fauna

Sub: Environment

Sec: Species in news

Context:

• A limbless amphibian, the striped caecilian (Ichthyophis spp), was recorded for the first time in Kaziranga National Park and Tiger Reserve.
• The discovery was made during a rapid herpetofauna survey conducted from June 14-17 by a team of herpetologists with support from various institutions and experts.

Importance of Herpetofauna:

• Reptiles and amphibians, collectively known as herpetofauna, are critical for pest control and environmental indicators.
• They are the least studied but highly vulnerable to climate change.
• Caecilians are limbless amphibians that primarily live burrowed under soil.
  • Their presence is crucial for understanding evolution and intercontinental speciation.

Conservation Efforts

• Kaziranga National Park continues to reveal its rich biodiversity, with new species discoveries highlighting the need for comprehensive conservation efforts that include lesser-known yet ecologically significant species like the striped caecilian.
• The conservation efforts are traditionally focused on the ‘Big Five’ (rhinoceros, tiger, elephant, wild water buffalo, and swamp deer).
• There is increasing attention on the ecological significance of herpetofauna.

About Kaziranga National Park:

Source: TH

12. Back from the brink: IUCN changes Iberian lynx’s status to ‘vulnerable’ from ‘endangered’ in conservation success story

Sub: Environment

Sec: Species in news

Context:

• The Iberian Lynx (Lynx pardinus) has been reclassified from ‘Endangered’ to ‘Vulnerable’ by the IUCN on June 20.
• Population increased from 62 mature individuals in 2001 to 648 in 2022.
• Total population, including young lynx, is now over 2,000.

Conservation Efforts:

• Efforts over nearly 25 years have focused on:
  • Increasing prey abundance, specifically the Endangered European rabbit (Oryctolagus cuniculus).
  • Protecting and restoring Mediterranean scrub and forest habitats.
  • Reducing human-caused deaths.
• Genetic diversity has been expanded through translocations and an ex-situ breeding program.
• Since 2010, over 400 lynxes have been reintroduced to parts of Portugal and Spain.
• Occupied range increased from 449 km² in 2005 to 3,320 km².

Remaining Threats:

• Fluctuations in European rabbit populations due to virus outbreaks.
• Susceptibility to diseases from domestic cats, poaching, road kills, and habitat changes from climate change.

Future Plans:

• Continued efforts are needed for the Iberian lynx to thrive.
• Plans include reintroducing the species to new sites in central and northern Spain.
• Scientists believe the species could reach Fully Recovered status in 100 years if conservation efforts remain effective.

Iberian Lynx (Lynx pardinus):

• The Iberian lynx is the world’s most endangered feline species.
• Characteristic Features: Of all lynx, the Iberian has the most heavily spotted coat.
  • The cat has white underparts. This species, like other cat species, is sexually dimorphic, with males being heavier and longer than females.
    • Sexual dimorphism is the systematic difference in form between individuals of different sex in the same species.
• Habitat: The Iberian lynx lives in Mediterranean forests composed of native oaks and abundant undergrowth and thickets.
  • It favours a mixture of dense scrub for shelter and open pasture for hunting.
  • Iberian lynx are found only in two small areas of southwest Spain on the Iberian Peninsula, west of the Pyrenees mountains. 
• Threats: 
  • Habitat destruction and alteration due to agricultural and industrial development
  • Conversion of native Mediterranean forest to plantations with no undergrowth
  • Direct persecution
  • Killed by automobiles
  • Caught illegally or hunted with dogs
  • Killed in traps set for other predators
• Conservation Status: 
  • The Iberian lynx is protected under Appendix II of the Convention on International Trade in Endangered Species (CITES).

Source: DTE

13. Nord Stream leaks: Thousands of tonnes of methane may have dissolved in Baltic seawater; marine life impacts unclear

Sub: IR

Sec: Places in news

Context:

• A new study has shed light on the fate of methane released from the September 2022 explosions damaging the Nord Stream pipelines in the Baltic sea.

Environmental Impact:

• While a significant amount of methane escaped, 10,000 to 50,000 tonnes of it likely dissolved in the surrounding water after the blasts.
• While the immediate environmental impact remains unclear, the research highlighted potential consequences for the marine ecosystem.
• The environmental implications of excess methane– a potent greenhouse gas- include local impacts on water carbon budgets and changes to the composition of microbial organisms.
• The incident is one of the largest known methane leaks, surpassing previous smaller leakage sites.
• Nord Stream pipelines transport a massive amount of natural gas from Russia to northern Germany.
• Methane Estimates:
  • European Space Agency observed 79 tonnes of methane per hour reaching the atmosphere.
  • Researchers estimated 40,000 tonnes were released into the atmosphere over seven days.
  • Another study suggested 220,000 metric tonnes emissions.

Scientific Expedition:

• Objective: To measure dissolved methane and its impact on the marine ecosystem.
• Methodology: Collected water samples from various depths and measured atmospheric methane concentrations.
• Findings: Estimated dissolved methane between 10,000 and 55,000 metric tonnes, potentially underestimated.

Biological Impact:

• Microbial Changes: High methane concentration may promote growth of methanotrophic bacteria, affecting the Baltic Sea microbial food web.
• Plankton Studies: Ongoing analysis of plankton samples collected during the expedition.

What is the Nord Stream Pipeline?

• Nordstream consists of two pipelines, which have two lines each.
• Nord Stream 1 was completed in 2011 and runs from Vyborg in Leningrad to Lubmin near Greifswald, Germany.
• Nord Stream 2 which runs from Ust-Luga in Leningrad to Lubmin was completed in September 2021 and has the capacity to handle 55 billion cubic meters of gas per year once it becomes operational.
• The twin pipelines together can transport a combined total of 110 billion cubic metres (bcm) of gas a year to Europe for at least 50 years.
• The Nord Stream crosses the Exclusive Economic Zones (EEZs) of several countries including Russia, Finland, Sweden, Denmark and Germany, and the territorial waters of Russia, Denmark, and Germany.
• In Germany, the pipeline connects to the OPAL (Baltic Sea Pipeline) and NEL (North European Pipeline) which further connects to the European grid.

Methane emission-

• Methane is a short-lived climate forcer (SLCF), a compound that warms or cools the Earth’s climate over shorter time scales – from days to years – than greenhouse gases like carbon dioxide, whose climatic effect lasts for decades, centuries or more.
• Methane has a lifetime in the atmosphere of about ten years. But per molecule, it’s a much more potent greenhouse gas over that period.
• So it’s responsible for a large part of the warming that we’re experiencing today.
• The Global Methane Assessment 2021 states that the atmospheric concentration of methane has more than doubled since pre-industrial times.
• Methane is second only to carbon dioxide (CO2) in driving climate change.
• Limiting warming to 1.50C or likely 20C requires deep, rapid, sustained reductions of other greenhouse gases, such as methane, alongside rapid reductions of carbon dioxide emissions to net zero.

Source: DTE