Daily Prelims Notes 21 October 2024

October 21, 2024
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Category: DPN

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Daily Prelims Notes

21 October 2024

Table Of Contents

1. DIPAM Asks Its Officers Not to Trade in Shares of State-Owned Companies

Sub : Eco

Sec: Capital market

Background:

The Department of Investment and Public Asset Management (DIPAM), which is under the Ministry of Finance, has directed its officials to refrain from trading shares of public sector companies to prevent misuse of market-sensitive information.
DIPAM handles government equity in public sector enterprises and is responsible for minority stake sales, strategic disinvestment, and privatisation of these companies.

Key Directives:

Internal Order to Prevent Trading:
- DIPAM issued an internal order stating that officials must not buy or sell shares of state-owned companies.
- Reason: Officers might have access to market-sensitive information that could influence the share prices of companies, and trading could lead to insider benefits.
Declaration of Holdings:
- New officers joining the department are required to declare their holdings in public sector enterprises (PSEs).
- Any such shares held by officials can only be liquidated after approval from the authorities, ensuring transparency and fairness.

Role of DIPAM:

Maximising CPSE Share Value:
- DIPAM’s primary goal is to maximize the value of Central Public Sector Enterprises (CPSE) shares while ensuring that no misuse of price-sensitive information occurs.
Government Equity Sale:
- The department manages the sale of central government equity through various means, such as offer for sale, private placement, and strategic disinvestment.
- DIPAM also advises on the financial restructuring of CPSEs to attract investment through capital markets.

2. PM opens 3 airports in Chhattisgarh, Madhya Pradesh, Uttar Pradesh under UDAN scheme

Sub: Schemes

Sec: Eco

Context:

Prime Minister Narendra Modi virtually inaugurated three airports across the country in Chhattisgarh’s Surguja, Madhya Pradesh’s Rewa and Uttar Pradesh’s Saharanpur.
The Maa Mahamaya Airport at Ambikapur in Surguja district of Chhattisgarh is the first airport in Chhattisgarh’s northern tribal belt.
The airports have been developed under the Regional Connectivity Scheme (RCS) – UDAN (Ude Desh Ka Aam Nagrik) of the Central government.

About UDAN Scheme:

UDAN (Ude Desh Ka Aam Nagrik) is the Government’s initiative improve infrastructure and connectivity in India, especially in remote and underserved regions.
It aims to make air travel to India’s tier II and tier III cities affordable to Common man.
Under the scheme, the Government offers incentives to airlines to flag off new flights to neglected smaller cities and towns by providing Viability Gap Funding to make these operations profitable.
It is a vital component of India’s National Civil Aviation Policy (NCAP) 2016, launched by the Ministry of Civil Aviation (MoCA) on October 21, 2016, with a 10-year vision.
The first RCS-UDAN flight was inaugurated in 2017, connecting Shimla to Delhi.

Various versions of UDAN Scheme:

UDAN 1.0: Awarded 128 flight routes to 70 airports, including 36 new ones.
UDAN 2.0: Announced 73 underserved/unserved airports, incorporating helipads.
UDAN 3.0: Introduced Tourism Routes in partnership with the Ministry of Tourism.
UDAN 4.0: Focused on North-Eastern Regions, hilly states, and islands.

UDAN version 5 series:

UDAN 5.0: Focus on Category-2 (20-80 seats) and Category-3 (>80 seats) aircraft.
UDAN 5.1: Aimed at enhancing helicopter operations.
UDAN 5.2: Aimed at improving connectivity to remote areas and boosting tourism with small aircraft (<20 seats).
UDAN 5.3: Launched in January 2024 to revive previously discontinued routes.
UDAN 5.4: Ongoing bidding for additional connectivity opportunities.

Achievements of the scheme:

RCS-UDAN has enhanced last-mile connectivity and given significant boost to tourism.
The scheme has catalysed the growth of the civil aviation industry over the past seven years, enabling new airlines like Flybig, Star Air, IndiaOne Air, and Fly91 to establish sustainable business models. This has fostered a supportive ecosystem for regional airline operators.
RCS-UDAN has successfully connected 34 states and UTs, operationalizing 86 aerodromes, including ten in the Northeast.

3. 16th Century Copper plates discovered in Tiruvallur

Sub: History

Sec: Ancient History

Context:

A set of copper-plate inscriptions dating back to the 16th Century CE have been discovered at the Sri Singeeswarar temple at Mappedu village in Tiruvallur district of Tamil Nadu recently.
The two leaves of the copper plates were strung together using a ring that had the seal of the Vijayanagara Kingdom.
According to Archaeological Survey of India, the inscription was written in Sanskrit using the Nandinagari script. It was engraved in 1513 during the reign of King Krishnadevaraya.

About Vijayanagara Kingdom:

The Vijayanagar Empire was founded in 1336 by Harihara and Bukka.
Initially serving under the Kakatiya rulers of Warangal, they later declared their independence and established a new city on the south bank of the Tungabhadra River, naming it Vijayanagar (city of victory).
The Vijayanagara Empire witnessed the reign of four dynasties: Sangama, Saluva, Tuluva, and Aravidu.
The kingdom reached its zenith under Krishna Deva Raya during which it held military superiority over rivals like the Bahmani Sultanate, Golconda Sultanate, and the Gajapatis of Odisha.
During the reign of Rama Raya, he was defeated at the Battle of Talaikotta in 1565 by the combined forces of Bijapur, Ahmednagar, Golconda, and Bidar, marking the decline of the Vijayanagar Empire.
The last ruler of Vijayanagar was Sri Ranga III.

Krishna Deva Raya (1509-1529):

Krishnadevaraya of Tuluva dynasty was the most famous ruler of Vijayanagar. His rule was characterised by expansion and consolidation.
He became the dominant ruler of the peninsula by defeating the sultans of Bijapur, Golconda, the Bahmani Sultanate and the Gajapatis of Odisha.
Titles: Andhra Bhoja, Mooru Rayara Ganda, and Kannada Rajya Rama Ramana
The Portuguese travellers Domingo Paes and Duarte Barbosa visited the Vijayanagara Empire during his reign.
He Promoted Telugu literature and was a patron of poets like Allasani Peddana His era is called the Golden Age of Telugu literature.
The Ashtadiggajas was a group of eight renowned poets in his court, who played a key role in enriching Telugu literature and arts.
Amuktamalyada written by Krishnadevaraya is considered a classic in Telugu literature.
Initially a follower of Shaivism, he later embraced Vaishnavism and constructed temples for both Shiva and Vishnu, exemplifying religious tolerance.

Nandinagari script:

Nandinagari, a variant of Nagari script, is mostly confined to the Karnataka region.
The Nandinagari script was used in South India between the 8th and 19th centuries for writing manuscripts and inscriptions.
It is written from left to right.

4. Climate Finance for Developing Nations: Challenges and Requirements

Sub : Env

Sec Int conventions

Why in News

The upcoming 29th Conference of the Parties (COP29) of the United Nations Framework Convention on Climate Change (UNFCCC), scheduled to be held in Baku, Azerbaijan from November 11 to 22, 2024, is set to focus heavily on climate finance. Key discussions will revolve around developing countries’ vulnerabilities to climate change and the need for external financial support for mitigation and adaptation efforts.

What is Climate Finance?

According to the UNFCCC, climate finance refers to the mobilization of local, national, or transnational funding—from public, private, and alternative sources—to support actions aimed at mitigating and adapting to climate change. It has two key aspects:

Sources: Public or private financing, whether domestic or international.

End-Uses: Focused on climate mitigation (reducing emissions) or adaptation (adjusting to climate impacts).

The Convention, the Kyoto Protocol and the Paris Agreement call for financial assistance from Parties with more financial resources to those that are less endowed and more vulnerable.

In accordance with the principle of “common but differentiated responsibility and respective capabilities” set out in the Convention, developed country Parties are to provide financial resources to assist developing country Parties in implementing the objectives of the UNFCCC.

The Paris Agreement reaffirms the obligations of developed countries, while for the first time also encouraging voluntary contributions by other Parties.

The Organisation for Economic Co-operation and Development (OECD) regularly reports on financial flows from developed to developing countries.

Why are Developing Countries More Vulnerable?

Geographical Factors: Many developing nations are located in regions prone to extreme climate events.

Economic Dependency: Their economies are more reliant on sectors like agriculture, which are highly sensitive to climate variations.

Despite this, developing countries have contributed minimally to global emissions. The Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) shows that developed nations account for 57% of cumulative global emissions since 1850, despite hosting smaller populations. Meanwhile, developing countries face competing developmental needs that limit their ability to take sufficient climate action without external support.

The $100 Billion Pledge

Under the 2009 Copenhagen Accord, developed nations committed to providing $100 billion annually in climate finance to developing countries by 2020. However, the actual disbursement has been called into question, with the need for a new target for the post-2025 period becoming a priority at COP29.

India’s Climate Finance Requirements

India has ambitious climate targets that necessitate substantial investment:

By 2030, India aims to install 500 GW of non-fossil-fuel-based generating capacity, produce 5 million metric tonnes of green hydrogen annually, and promote electric vehicle (EV) adoption.

Achieving these targets requires significant financial support:

To achieve 450 GW of renewable energy by 2030, India would need an estimated investment of ₹16.8 lakh crore.

India’s National Green Hydrogen Mission will require an additional ₹8 lakh crore.

Consumers will need to invest ₹16 lakh crore to support the EV transition.

In the long-term, India needs a total investment of ₹850 lakh crore between 2020 and 2070 to reach net-zero emissions.

Establishing the New Collective Quantified Goal (NCQG)

A key focus of COP29 is determining a new annual climate finance target—called the New Collective Quantified Goal (NCQG).

Purpose and Background: The NCQG is intended to set a new global climate finance target for developed countries to support developing nations in their climate action efforts. It’s meant to succeed and expand upon the previous goal of mobilizing $100 billion annually by 2020, which was established at the 2009 Copenhagen Climate Conference.

Key Features:

Quantified Goal: The NCQG aims to establish a specific, measurable target for climate finance.
Collective Effort: It represents a joint commitment from developed countries, rather than individual national pledges.
Post-2025 Framework: The NCQG is set to come into effect after 2025, building on the previous $100 billion goal.
Comprehensive Scope: It’s expected to cover various aspects of climate finance, including mitigation, adaptation, and addressing loss and damage.

Negotiation Process: The NCQG is being discussed and negotiated through a series of technical expert dialogues and high-level ministerial meetings under the UNFCCC (United Nations Framework Convention on Climate Change) process.

Challenges: Determining the NCQG involves complex negotiations around the scale of funding needed, sources of finance, and mechanisms for delivery and transparency.

Importance: The NCQG is crucial for supporting developing countries in their climate action efforts and is seen as a key element in maintaining trust and cooperation in global climate negotiations.

About COP29 of UNFCCC:

Date: Scheduled for November 11-24, 2024

Location: Baku, Azerbaijan

It follows COP28 held in Dubai, UAE, in 2023, which saw significant discussions on the phase-out of fossil fuels and the operationalization of the loss and damage fund.

5. Impact of Atlantic Ocean Hurricane Forecasts on India: Climate Stressors and Cyclone Predictions

Sub : Geo

Sec :Climatology

Why in News

Countries surrounding the Indian Ocean are increasingly vulnerable to climate change, both in terms of chronic stressors like warming oceans and acute stressors such as cyclones and extreme weather events. The Atlantic hurricane forecasts have prompted a fresh look at the state of India’s own weather prediction capabilities and the potential effects on regional climate dynamics.

Global Climate Stressors Impacting Indian Ocean Region

Chronic Stressors: These include rising sea levels, warming oceans, and increased extreme rainfall events. Chronic stressors occur consistently over time, making the region more susceptible to acute stressors.

Acute Stressors: These are events that exacerbate the impact of chronic conditions, such as cyclones, heavy rainfall, and flash droughts. Acute stressors often cause sudden, severe damage.

Hurricane and Cyclone Forecasts:

Meteorologists had predicted a historic hurricane season for 2024 based on the expected development of La Niña. However, despite early hurricanes like Helene and Milton, the strong La Niña conditions have not materialized as forecasted.

El Niño and La Niña Effects: Historically, El Niño tends to suppress cyclones, while La Niña intensifies them. However, the global warming patterns observed during 2023-2024 have altered this predictable link.

What is Hurricane:

A hurricane is a powerful and destructive tropical storm characterized by strong winds, heavy rainfall, and low atmospheric pressure.

Hurricanes are also known as cyclones or typhoons in different parts of the world.

In the Atlantic Ocean and Northeast Pacific, they are called hurricanes, while in the north western Pacific, they are referred to as typhoons, and in the South Pacific and Indian Ocean, they are known as cyclones.

About EL Nino

El Nino refers to the large-scale ocean-atmosphere climate interaction linked to periodic warming in sea surface temperatures across the central and east-central Equatorial Pacific.

It is associated with high pressure in the western Pacific. El Nino adversely impacts the Indian monsoons and hence, agriculture in India.

El Nino means lesser than average rains for India. Indian agriculture is heavily dependent on the monsoons and because of this, lesser rainfall during the monsoons generally translates to below-average crop yields.

What happens because of El Nino?

The cool surface water off the Peruvian coast goes warm because of El Nino. When the water is warm, the normal trade winds get lost or reverse their direction.

Hence, the flow of moisture-laden winds is directed towards the coast of Peru from the western Pacific (the region near northern Australia and South East Asia).

This causes heavy rains in Peru during the El Nino years robbing the Indian subcontinent of its normal monsoon rains. The larger the temperature and pressure difference, the larger the rainfall shortage in India.

About La Nina:

It means the large-scale cooling of ocean surface temperatures in the central and eastern equatorial Pacific Ocean, together with changes in the tropical atmospheric circulation, namely winds, pressure and rainfall.

It has the opposite impacts on weather and climate as El Niño, which is the warm phase of the El Niño Southern Oscillation (ENSO).

Weather Changes due to La Nina:

The Horn of Africa and central Asia will see below average rainfall due to La Niña.

East Africa is forecast to see drier-than-usual conditions, which together with the existing impacts of the desert locust invasion, may add to regional food insecurity.

It could also lead to increased rainfall in southern Africa.

It could also affect the South West Indian Ocean Tropical Cyclone season, reducing the intensity.

Southeast Asia, some Pacific Islands and the northern region of South America are expected to receive above-average rainfall.

In India, La Niña means the country will receive more rainfall than normal, leading to floods.

Cyclone Activity in the North Indian Ocean

The North Indian Ocean, particularly the Arabian Sea, has witnessed an increasing number of cyclones. While the region has been relatively quiet in recent years, this unpredictability only highlights the difficulty in forecasting future cyclone patterns.

Rapid Intensification: Cyclones gain energy from the upper ocean layers, and as these waters warm, cyclones may intensify rapidly, with wind speeds increasing by over 55 km/h in less than 24 hours.

India’s Progress in Cyclone Forecasting and Disaster Management

Improved Forecasting Systems: India has made significant strides in improving its cyclone forecasting capabilities, with advanced early warning systems that have helped reduce loss of lives.

Geographical Advantages: The areas over the Arabian Sea and Bay of Bengal where cyclones typically intensify are relatively small, limiting their size and strength. Additionally, many cyclones are steered away from India’s mainland, reducing their potential impact.

About Tropical Cyclone:

A tropical cyclone is an intense circular storm that originates over warm tropical oceans and is characterized by low atmospheric pressure, high winds, and heavy rain.

A characteristic feature of tropical cyclones is the eye, a central region of clear skies, warm temperatures, and low atmospheric pressure.

Storms of this type are called hurricanes in the North Atlantic and eastern Pacific and typhoons in South-East Asia and China. They are called tropical cyclones in the southwest Pacific and Indian Ocean region and Willy-willies in north-western

Storms rotate counter-clockwise in the northern hemisphere and clockwise in the southern

The conditions favourable for the formation and intensification of tropical storms are:

Large sea surface with temperature higher than 27° C.
Presence of the Coriolis force.
Small variations in the vertical wind speed.
A pre-existing weak low-pressure area or low-level-cyclonic circulation.
Upper divergence above the sea level system.

6. Galathea Bay: A Strategic Game-Changer in Maritime Trade

Sub : Eco

Sec: Infrastructure

Why in News

Galathea Bay, located on the Great Nicobar Island, has been notified as India’s 13th major port. The International Container Transshipment Port (ICTP) proposed here could potentially transform maritime trade in the region.

Strategic Importance of Galathea Bay Port:

Location and Trade Route: Galathea Bay, situated on the Great Nicobar Island in the Bay of Bengal, is strategically positioned along the East-West international shipping and trade route. It lies close to major transshipment hubs such as Singapore, Colombo, and Klang, making it a key location for capturing cargo from Indian east coast ports, as well as from Bangladesh and Myanmar.

Proximity to Global Shipping Channels: The port is located 40 nautical miles from the Malacca Strait, which handles 35% of the world’s annual sea trade. Presently, 75% of India’s transshipped cargo is routed through foreign ports, with Colombo alone handling 45% of this. The development of the ICTP at Galathea Bay can help Indian ports save $200-220 million annually in transshipment charges.

Reduction in Transshipment Costs: At present, India’s transshipment cargo is predominantly handled by foreign ports, leading to substantial outflow of revenue. The Galathea Bay port can significantly reduce transshipment costs and improve the efficiency of Indian maritime trade.

Boost to the Indo-Pacific Region: As part of the evolving Indo-Pacific geopolitical region, this port can act as a gateway for trade and security, increasing India’s presence and influence in the region.

Four-Phase Development Plan:

The ICTP is planned to be developed in four stages with an estimated total cost of ₹41,000 crore.

Phase 1, scheduled for completion in 2028, is expected to have a handling capacity of 4 million TEUs (Twenty-foot Equivalent Units), with the final stage scaling up to 16 million TEUs.

Phase 1 alone will require ₹18,000 crore for dredging, reclamation, breakwater construction, and development of core infrastructure.

Phase 2: Gradual increase in capacity beyond the initial 4 million TEUs. Additional berths and expansion of logistical and operational facilities.

Phase 3: Scaling up to a more advanced cargo handling capability. Further enhancements in equipment procurement and operational efficiencies to handle larger shipments.

Phase 4: Full-scale development to reach 16 million TEUs. Aimed at establishing the port as a major global transshipment hub.

About Kamarajar Port: India’s 12th Major Port

Kamarajar Port, located in Ennore, Tamil Nadu, was declared India’s 12th major port in March 1999.

This port was the first corporatized major port in India, functioning as a public sector company with 100% equity held by the government.

The port was named after K. Kamaraj, a prominent Indian politician and former Chief Minister of Tamil Nadu, in recognition of his contribution to public welfare and development.

Located on the Coromandel Coast, Kamarajar Port primarily serves the industrial and commercial needs of Tamil Nadu.

Its strategic position near Chennai Port has allowed it to function as a satellite port to ease the congestion at Chennai, handling bulk and liquid cargo, including coal, iron ore, and petroleum products.

Ports In India

India previously had 12 major seaports (11 Government-owned and one private) and 205 notified minor and intermediate ports that handle a huge volume of traffic.
About 95 percent by volume and 70 percent by value of India’s total international trade are carried on through maritime transportation.
All ports in India are situated in the 9 coastal states of India namely Kerala, Karnataka, Maharashtra, Goa, Gujarat, West Bengal, Odisha, Andhra Pradesh, and Tamil Nadu.
Mumbai is the largest natural port in India.
While the Major Ports are under the administrative control of Ministry of Shipping, the non-major ports are under the jurisdiction of respective State Maritime Boards/ State Government.