Daily Prelims Notes 30 March 2023

March 30, 2023
Posted by: OptimizeIAS Team
Category: DPN

Daily Prelims Notes

30 March 2023

Table Of Contents

1. Climate change may end up greening the Thar Desert

Subject: Geography

Section: Physical Geography

Context: A study of rainfall and climate data portends the end of the Indian subcontinent’s arid northwestern swathes.

More on the News:

Two researchers have postulated that the demise of the Thar Desert is a distinct possibility due to global warming.
It is based on their theory on rainfall and climate data, with a focus on what is known as the ‘Indian ocean warm pool’, or IOWP.
The existence of this warm region in the Indian Ocean has been known for decades and is a source of monsoons. And now, with global warming, the IOWP is expanding westwards.
With the IOWP expanding westward, the ‘length of the rainy season’ would result in “a 50-100 per cent increase in the mean summer rainfall over the semi-arid northwest of India”.
As global warming is likely to continue at least till the end of the century, westward expansion of the Indian monsoon will continue. The length of the monsoon season is expected to increase from about 70 days to about 90 days and annual rainfall to increase from about 45 cm to about 70 cm by that time. The increased rainfall spread over a longer season will help grow taller vegetation.
However, during the dry winter season, the plants may die unless water is made available through irrigation or uplift of the water table. So, greening could be accelerated if the run-off during the monsoon season could be harvested.
In the long term, the increased rainfall has the potential to green the desert and significantly increase food productivity in the region. But in the short term, it is necessary to plan for harvesting the excess water to increase groundwater reserves.

Indian Ocean Warm Pool

The Indian Ocean Warm Pool (IOWP) is a region of the Indian Ocean that is characterized by sea surface temperatures of more than 28°C throughout the year.
The Indian Ocean Warm Pool is located in the western part of the Indian Ocean, primarily in the region bounded by the eastern coast of Africa, the northern coast of Madagascar, and the southern coast of India.
IOWP Formation: Atmospheric winds cool the ocean surface through evaporation, sometimes forcing colder, deep waters to come up — a phenomenon known as ‘upwelling’. This happens near the Somalia coast in the western Arabian Sea during summers. The waters in the region are cooler, leaving a ‘warm pool’ elsewhere.
The Indian Ocean Warm Pool plays an important role in the global climate system, as it influences the monsoon climate of the Indian subcontinent and the surrounding regions. The high sea surface temperatures in the IOWP lead to increased evaporation, which in turn contributes to the formation of the monsoon rains.
The warm temperatures and high levels of sunlight promote the growth of phytoplankton, which forms the base of the marine food chain. The region is also home to a diverse range of marine life, including coral reefs, fish, and marine mammals.

Thar Desert

The Thar Desert, also known as the Great Indian Desert, is a large arid region in the northwestern part of India and the eastern part of Pakistan.
The Thar Desert is located in the northwestern part of the Indian subcontinent, covering an area of approximately 200,000 square kilometers. It spans across the states of Rajasthan, Gujarat, Haryana, and Punjab in India, and the eastern part of Pakistan.
The Thar Desert is characterized by extreme climatic conditions, with high temperatures during the day and low temperatures at night. The region experiences very little rainfall, with an average annual rainfall of less than 250 mm. The climate is also marked by strong winds, dust storms, and sandstorms.
Thar Desert Formation
- The amount of rain falls from east to west. The western region of Rajasthan receives little to no rainfall. This is because of the following factors.
  - The Arabian Sea branch of the southwest monsoon blows through Gujarat’s Kathiawar area and escapes to the north-west.
  - There are no towering mountains to keep these winds at bay. The Aravalli range in Rajasthan runs parallel to the path of the monsoon winds and cannot prevent them from moving north.
  - The region’s high temperatures improve the water retention capacity of the winds and diminish the likelihood of rainfall.
- Despite the harsh climatic conditions, the Thar Desert is home to a diverse range of flora and faun The region is known for its unique desert vegetation, including thorny bushes, shrubs, and cacti. The desert is also home to several species of reptiles, birds, and mammals, including the Indian gazelle, the Indian wolf, and the desert fox.
- The Thar Desert is sparsely populated, with a few scattered human settlements. The region is home to several indigenous communities, including the Rajputs, the Jats, and the Meghwals. Thar Desert has the highest population density of any desert on the planet.
- Water is a scarce resource in the Thar Desert. The Luni River is the only large river in this area. The region relies heavily on groundwater reserves. However, overexploitation of groundwater has led to a depletion of the water table, posing a threat to both human and animal populations in the region.
- The Thar Desert is a rich source of minerals and other natural resources, including coal, gypsum, and marble. The region is also known for its handicrafts, particularly embroidery and weaving. Tourism is another important economic activity in the region, with several desert safaris and camel rides attracting visitors from around the world.
- The Thar Desert faces several environmental challenges, including soil erosion, desertification, and loss of biodiversity. Climate change is exacerbating these challenges, with rising temperatures and changing rainfall patterns affecting the desert ecosystem.

2. Carbon Pricing Dashboard

Subject: Environment

Section: International Convention

Carbon Pricing Dashboard

Carbon Pricing Dashboard is a tool developed by the World Bank to track carbon pricing initiatives around the world. The dashboard provides information on carbon pricing policies and initiatives, including carbon taxes and emissions trading schemes, and is designed to help policymakers and stakeholders assess the effectiveness of different carbon pricing approaches.
The Carbon Pricing Dashboard is an important tool for promoting global efforts to address climate change. By tracking carbon pricing initiatives around the world and providing information on their effectiveness, the dashboard can help to promote the adoption of effective and efficient carbon pricing policies, and to support efforts to reduce greenhouse gas emissions and mitigate the impacts of climate change.
It builds on the data and analyses of the annual State and Trends of Carbon Pricing report series.
This interactive tool complements World Bank Group activities to advance well-designed carbon pricing systems around the world:
- The Partnership for Market Implementation (PMI): PMI assists countries to design, pilot, and implement pricing instruments aligned with their development priorities. A 10-year program with a capitalization target of US$250 million, the Partnership brings an ambitious and long-term vision for the viability of carbon markets to its support for programs and policies — across jurisdictions and sectors — that introduce a strong price signal on carbon emissions and contribute to the Paris Agreement goal of limiting temperature rise to 1.5°C.
- The Carbon Pricing Leadership Coalition (CPLC): Launched in 2015, the CPLC brings together leaders from government, business and civil society, with the goal of putting in place effective carbon pricing policies that maintain competitiveness, create jobs, encourage innovation, and deliver meaningful emissions reductions.
- The Mitigation Action Assessment Protocol (MAAP): the MAAP is an online interface a tool that establishes a transparent and independent framework to help governments, project developers, investors and other relevant stakeholders to design, assess and compare the relative risks and performance of mitigation efforts across the globe.
- The International Carbon Action Partnership (ICAP) Secretariat supports the Carbon Pricing Dashboard by providing the latest data for mandatory cap-and-trade systems—building off the ICAP ETS Map.
- ICAP is an international forum for governments and public authorities that have implemented or are planning to implement emissions trading systems (ETS). Founded in 2007 and now counting 40 jurisdictions from four continents among its Members and Observers, ICAP facilitates the exchange of experience and best practices among jurisdictions, with a view to improving collaboration and support in the gradual alignment and linking of domestic carbon markets.

What is carbon pricing?

Carbon pricing is the value ascribed to the external costs – usually social costs – of pollution emitted by an industry
Carbon pricing is done either through a carbon tax or an emission trading system.
Carbon tax is the price that governments impose on polluters for each metric ton of carbon dioxide emissions generated.
Carbon trading is a market-based approach in which each polluter is allotted a specific quota (permit) or allowance of pollution that it can emit and trade these permits.

Why a price on carbon?

Carbon is priced because CO2 being the most emitted GHGs
According to the latest IPCC report, the window of action for reducing emissions to limit global warming to 1.5 – 2 deg C above pre industrial level is rapidly closing.
And global warming & climate change create conditions beyond human tolerance
Currently, Carbon pricing is done in two ways: (1) carbon tax, (2) Cap-and-trading or emission trading system (ETS)

What is Carbon tax?

Governments impose on polluters for each metric ton of CO2 emissions (mt CO2e) generated
Levied on coal, oil products, and natural gases, according to their carbon content
It motivates industries to improve energy efficiencies, move towards low-carbon fuels and renewable energy sources.
Carbon taxes are fairly easy to administer as add-ons to already existent fuel taxes
Generate revenue for governments that can be utilised for achieving sustainable development goals.
However, Carbon tax affects people of lower income groups as it increases fuel prices, and carbon taxes on industries trickle down to consumers
In addition, carbon taxes may discourage investment and economic growth as businesses may shift production into countries without carbon taxes
Finally, the administrative costs of monitoring and measuring emissions, and uncertainties in measuring the social costs of carbon pollution can make carbon taxation a difficult task.

What is carbon trading?

Market-based approach to pricing carbon emissions and to limit the total amount of carbon-based pollution that can be produced.
Governments allocate a limited number (set as a cap) of permits that allow a specified amount of emissions over a period of time.
Polluters are then allowed to trade these permits with each other.
if a polluter manages to maintains emission levels lower than its assigned permit values, it can sell the right to emit carbon to another polluter which may be emitting more that its quota

What are carbon credits?

A carbon credit is a generic term for a tradeable certificate or permit to emit a 1 metric tonCO2 or an equivalent amount of different GHGs.
It is the basic trading unit for carbon markets.
The carbon trading market was set up in 1997, after the Kyoto Protocol was signed.
Under this protocol, all participating countries were to set and adhere to a limit on their carbon emissions over a series of commitment periods.
However, the protocol also allowed countries to trade emissions permits with each other.
Apart from these permits, carbon removal units (from activities such as reforestation), emission reduction units, and certified emission reductions (from clean development mechanism projects) can also be traded
The prices in cap-and-trade schemes, which use carbon credits, are market driven (meaning that their prices vary according to demand and supply), although the government controls how many units/credits are allotted to each industry/stakeholder, and so how many credits are available for sale on the whole.

3. Green Corridors

Subject: Environment

Section: International convention

Context: If Green Corridors succeed, in 2030 zero-emission shipping will be a commercially viable option anywhere.

Green Corridors for Shipping:

Green corridors for shipping involves the creation of shipping routes that are environmentally sustainable and optimized for low-carbon shipping.
The idea behind green corridors is to facilitate the movement of goods and peoplewhile minimizing the environmental impact of shipping activities.
Green corridors for shipping typically involve a range of measures, including the use of clean energy sources, such as wind, solar, and hydrogen, the optimization of shipping routes to minimize fuel consumption and emissions, the use of eco-friendly ship designs and technologies, and the adoption of sustainable shipping practices.
The idea of Green Corridors took root in the public consciousness at COP26 in Glasgow, with the signing of the Clydebank Declaration by governments and the publication of the report The Next Wave: Green Corridors, which described the concept in detail.
Since then several initiatives and projects are underway around the world to develop green corridors for shipping. These include the ‘Motorways of the Sea’ project in Europe, which aims to create a network of sustainable shipping routes, the ‘Green Corridor Joint Industry Project’ in Asia, which focuses on the development of low-emission shipping technologies and practices, and the ‘Zero Emission Vessels 2030’ project in Norway, which aims to develop and demonstrate zero-emission shipping technologies.

Importance of Green Corridors for Shipping

Reducing greenhouse gas emissions: The shipping industry is a significant contributor to greenhouse gas emissions, accounting for around 2-3% of global emissions. Green corridors for shipping can help reduce these emissions by promoting the use of low-carbon shipping technologies, such as hybrid and electric vessels, and optimizing shipping routes to reduce fuel consumption.
Improving air quality: Shipping activities can also have negative impacts on local air quality, particularly in port cities. Green corridors for shipping can help reduce these impacts by promoting the use of low-emission technologies, such as shore power, and encouraging the adoption of sustainable shipping practices.
Supporting sustainable development: The development of green corridors for shipping can also support sustainable development goals by promoting the use of renewable energy sources, reducing dependence on fossil fuels, and promoting sustainable transport systems.
Meeting climate targets: The development of green corridors for shipping is also essential for meeting global climate targets, such as those outlined in the Paris Agreement.

Green Corridors at COP27

Among other discussions, the 24 governments that have signed the Clydebank Declaration are marking its one-year anniversary by taking stock of progress so far, in part by discussing the Annual Progress Report on Green Shipping Corridors that the Global Maritime Forum and Getting to Zero Coalition are publishing.
The Zero-Emission Shipping Mission have also launched a Green Corridors Hub, with a set of useful tools for governments and companies who are interested in the topic. One of the most interesting is public-domain data set and evaluation method developed by University Maritime Advisory Services for the Getting to Zero Coalition. It’s introducing a new approach to deciding which routes are best suited to become Green Corridors.

Clydebank Declaration:

The Clydebank Declaration aims to set up green shipping corridors, which are zero-emission maritime routes between 2 (or more) ports.
Launched at COP26 by UK.
As part of the declaration, the signatory countries will support the establishment of at least six green shipping corridors by 2050.
India has not signed the declaration yet.
In the pursuit of these goals signatories have pledged to:
- facilitate the establishment of partnerships, with participation from ports, operators and others along the value chain, to accelerate the decarbonization of the shipping sector and its fuel supply through green shipping corridor projects;
- identify and explore actions to address barriers to the formation of green corridors. This could cover, for example, regulatory frameworks, incentives, information sharing or infrastructure;
- consider the inclusion of provisions for green corridors in the development or review of National Action Plans;
- work to ensure that wider consideration is taken for environmental impacts and sustainability when pursuing green shipping corridors.

4. Great Nicobar project will not evict tribes

Subject : Geography

Section: Places in news

Context: Government says 7.114 sq. km of tribal reserve area is proposed to be utilised for the project, but that is subject to the protection of interests of local tribespeople.

More on the News:

Displacement of tribespeople will not be allowed to make room for the ₹72,000 crore Great Nicobar island project, the Ministry of Tribal Affairs told the Rajya Sabha on March 29.
The government said the utilisation of the tribal reserve area will be subject to the following conditions:
- “The interests of tribal population especially Shompen, a Particularly Vulnerable Tribal Group are not affected adversely;
- Strict implementation of the provisions of Protection of Aborigine Tribe (PAT) Regulation to protect the interest of the Shompen;
- The displacement of tribals will not be allowed;
- Eco-tourism will be regulated in effective manner.”
Further, the government said that the Lieutenant Governor of Andaman and Nicobar Islands had already constituted an Empowered Committee to obtain views and consultations on the impact of the project. This committee consists of concerned government departments, anthropologists and experts, the Tribal Affairs Ministry said.

Great Nicobar Project https://optimizeias.com/great-nicobar-project/

5. SEBI Disclosure Norms

Subject: Economy

Section: Capital markets

Concept :

The Securities & Exchange Board of India (SEBI) mandated that large listed companies must confirm or deny price-sensitive market rumours, and in the case of material board decisions disclose the same to the stock exchanges within 30 minutes.

Details

To bring more transparency and to ensure timely disclosure of material events or information by listed entities, the SEBI board made it mandatory for the top 100 listed companies by market capitalisation to verify, confirm or deny or clarify any market rumours.
This would come into effect from October 1, 2023.
And in the case of the top 250 listed entities by market capitalisation, the deadline to adhere to this norm would be April 2024.
The markets regulator has also made it mandatory for upstreaming of clients’ funds by stock brokers and clearing members to Clearing Corporations.

Significance

This move is aimed at protecting retail investors’ funds in the secondary market.
This will mitigate credit risk on intermediaries and risk of potential misuse of clients’.

Price Sensitive Information

According to SEBI, Price-sensitive information means any information which relates, directly or indirectly, to a company and which if published is likely to materially affect the price of securities of the company.

Material Events

A material event is when your company undergoes a change that would affect the share value of the business. Material events are pivotal situations or changes to the business that would dramatically shift the valuation (value) of the company.

6. No charge on normal UPI payment : NPCI

Subject : Economy

Section: Monetary Policy

Concept :

The National Payments Corporation of India (NPCI) has introduced interchange fees of up to 1.1 per cent on merchant UPI transactions done using prepaid payment instruments from April 1.
The charge, starting from 0.5 per cent depending on the MCC (merchant category code), will be levied on UPI payments of over ₹2,000 made to online merchants, large merchants and small offline merchants.

Applicability of New norms

The new NPCI guidelines on wallet interoperability establish interchange fee for wallet usage, which will be paid to issuers of wallets such as Paytm, PhonePe and Google Pay, among others.
They also include charges for UPI-wallet-loading that will be paid by wallet issuers to remitter banks or the bank accounts from which the amount is being debited.

Impact on Wallet players

The inter-operability norms will enable universal acceptance of wallets across all UPI QR codes and devices, thus increasing the salience or relevance of wallets.
It will also ensure uniformity and parity by clearly defining the interchange fees on wallet payments as against the current practice of bilateral agreements between wallet issuers and payment platforms.

Interchange fees

The interchange rates vary according to merchant category codes, in the range of 0.5 per cent to 1.1 per cent.
Categories such as fuel, education, agriculture and utility payments attract a lower interchange of 0.5-0.7 per cent; convenience stories across food shops, specialty retail outlets and contractors, have the highest charge of 1.1 per cent.

Impact on Consumers

The norms are expected to increase the appeal, scope, role and usability of wallets as they can now be used to make UPI payments across QR codes and devices, increasing payments alternatives for customers.
As such, wallets are more convenient than UPI transactions owing to the facility of being able to load the wallet once to make multiple transactions rather than UPI code for every individual payment.
Consumers will also be able to load their wallets from anywhere including credit or debit cards, BNPL (Buy Now Pay Later) and net banking, among others, thus creating a mechanism to use any instruments for UPI transactions, albeit directly or indirectly.

Will this make wallet transactions costlier?

The interchange fees are paid by merchants to wallets or card issuers and are usually absorbed by merchants.
Smaller merchants and shopkeepers are unlikely to be impacted as it is applicable only on payments of over ₹2,000.
However, MDR (merchant discount rate or merchant transaction fees) is applicable on wallets-on-UPI in certain cases and this move may lead to higher MDRs imposed on merchants, depending on payment companies’ ability and willingness to pass on the interchange.
This may subsequently impact merchants’ ability to absorb the higher costs which could ultimately be passed on to customers.

Does this mean consumers will be charged for UPI transactions?

Introduction of MDRs on all UPI merchant (P2M) transactions seems unlikely at the moment as the government has maintained that UPI is a ‘public good’ and that it does not plan to introduce charges on UPI transactions.
However, loading of wallets for UPI transactions could cost more if wallet issuers decide to pass on the 15 bps interchange required to be paid to remitter banks for loads of over ₹2,000.

For further notes on MDR, refer – https://optimizeias.com/merchant-discount-rate-2/#:~:text=For%20debit%20cards%2C%20MDR%20is,is%20no%20cap%20on%20MDR.

7. Army to get satellite, will help provide mission critical data

Subject : Science and Technology

Section: defense

Concept :

The Ministry of Defence (MoD) has signed three contracts worth ₹5,400 crores.
Out of the three contracts, two are with Bharat Electronics Limited (BEL) worth ₹2,400 crores.
Another contract worth ₹2,963 crores is with NewSpace India Limited (NSIL), a Central Public Sector Enterprise under the Department of Space.
The contract with BEL includes the procurement of Automated Air Defence Control and Reporting System “Project Akashteer” for the Indian Army and Sarang Electronic Support Measure (ESM) systems for the Indian
₹2,963-crore contract with the NSIL is for an advanced communication satellite, GSAT 7B, for the Indian Army.
The geostationary satellite will be the first of its kind and will be developed indigenously by the Indian Space Research Organisation (ISRO).
The satellite will significantly improve the communication capability of the Indian Army by providing mission-critical beyond-the-line-of-sight communication to troops and formations as well as weapon and airborne platforms.

Project Akashteer

Project Akashteer is expected to improve the Army’s Air Defence units by integrating state-of-the-art capabilities.
Akashteer will also help in monitoring low-level airspace over the battle areas of the Indian Army.

Sarang Electronic Support Measure (ESM)

Sarang Electronic Support Measure (ESM) systems is an advanced ESM system for helicopters of the Navy, designed and developed indigenously by the Defence Electronics Research Laboratory, Hyderabad under the Samudrikaprogramme.

SamudrikaProgramme

The Programmesamudrika was launched to design and develop seven electronic warfare systems. They were grouped under two projects. They are air – borne projects and Ship – borne projects.
Ship – borne systems are Nayan, Shakti and Tushar.
Air – borne systems are Sarakshi, Nikash, Sarang AndSarvadhari.

8. India is indeed the mother of democracy – PM

Subject: International Events

Section : Msc

Concept:

The Second Summit for Democracy was co-hosted by the U.S., Costa Rica, the Netherlands, South Korea and Zambia.
121 leaders across the world were invited to the three-day Summit.
India, Nepal and Maldives were invited while Bhutan, Bangladesh and Sri Lanka did not get the invitation.
Pakistan, which was invited, declined to attend for the second time, ostensibly due to the exclusion of China.
The text for Summit for Democracy Declaration was finalised and is left open to be endorsed by the participating leaders.

Summit for Democracy

On December 9-10, 2021, US President Biden hosted the first Summit for Democracy.
This summit brought together leaders all over the world to set forth an affirmative agenda for democratic renewal and to tackle the greatest threats faced by democracies today through collective action.
Aim
The summit aims to show how open, rights-respecting societies can work together to effectively tackle the challenges of our time such as the COVID-19 pandemic, the climate crisis, and inequality.
Principal themes
The Summit is centered around three principal themes:
Defending against authoritarianism
Addressing and fighting corruption
Advancing respect for human rights

Key highlights of the speech delivered by PM Modi

India – mother of democracy :
Asserting that India is indeed the mother of democracy, PM Modi said that democracy refers not just to a structure but also the spirit of equality.
He said that the Mahabharata, the Vedas and all historical references prove that non-hereditary rulers first existed in India.
Democracy Can Deliver :
India, despite the many global challenges, is the fastest growing major economy today.
This itself is the best advertisement for democracy in the world. This itself says that Democracy Can Deliver.
India’s commitment on climate change :
Initiatives such as fighting the climate crisis through lifestyle changes, conserving water through distributed storage and providing clean cooking fuel to everyone are powered by the collective efforts of Indian citizens.
India’s response to the Covid-19 pandemic :
India’s response to the Covid-19 pandemic was people-driven and they made it possible to administer more than two billion doses of indigenously made vaccines.
‘Vaccine Maitri’ initiative shared millions of vaccines with the world.
This was also guided by the democratic spirit of ‘VasudhaivaKutumbakam’ — One Earth, One Family, One Future.

9. Solar PV waste management

Subject: Environment

Section: Pollution

Concept :

There has in the last few years been a concerted push from policymakers in India to transition to a circular economy and to, among other things, enable effective waste management.
But waste management in the solar photovoltaic (PV) sector still lacks clear directives.

Status of Solar PV in India

Globally, India has the world’s fourth-highest solar PV deployment.
The installed solar capacity was nearly 62GW in November 2022.
India is expected to become one of the top five leading photovoltaic waste producers worldwide by 2050.

Status of PV waste in India

According to a 2016 report by the International Renewable Energy Agency, India could generate 50,000-3,25,000 tonnes of PV waste by 2030 and more than four million tonnes by 2050.

Solar PV Technology in India

India’s solar PV installations are dominated by crystalline silicon (c-Si) technology.
A typical PV panel is made of c-Si modules (93%) and cadmium telluride thin-film modules (7%).
A c-Si module mainly consists of a glass sheet, an aluminum frame, an encapsulant, a backsheet, copper wires, and silicon wafers. Silver, tin, and lead are used to make c-Si modules.
The thin-film module is made of glass, encapsulant, and compound semiconductors.

Recycling of PV waste in India

According to e-waste guidelines: As these photovoltaic panels reach their end of lives, some portions of the frame are extracted and sold as scrap;junctions and cables are recycled.
According to a 2021 report, approximately 50% of total materials can be recovered through such waste management and recycling processes.
India’s challenge is the growing informal handling of photovoltaic waste. Only about 20% of the waste is recovered in general; the rest is treated informally.
The waste often accumulates at landfills. Landfill disposal in turn causes acidification, leaching of toxic metals (such as lead and cadmium) into the soil, and contaminates the local water.
Gradual incineration of the panel encapsulant also releases Sulphur dioxide, hydrogen fluoride, and hydrogen cyanide into the atmosphere.

Global action against solar waste:

Many Western and Asian economies have well-established regulatory guidelines for photovoltaic waste management and are actively investing in building awareness on effective waste management practices.
For example, the European Union’s ‘Waste Electrical and Electronic Equipment Directive’ makes producers responsible for safely and responsibly disposing of end-of-life photovoltaic panels.
In the US, states have the freedom to establish their own solar photovoltaic regulatory standards. Its National Renewable Energy Laboratory is also exploring ways to boost the circular economy in the solar photovoltaic sector.
China has introduced an implementation plan for life-cycle management and to improve the resource efficiency of solar photovoltaic panels.

10. Digital Public Infrastructure in India

Subject :Schemes

Concept:

Digital Public Infrastructure (DPI) is a versatile open-source identity platform that facilitates access to a vast array of government and private services through the development of innovative applications and products.
The platform encompasses a range of digital identification and verification tools, civil registration capabilities, and payment features, including digital transactions and money transfers, data exchange, and information systems.
India operationalised DPIs through India Stack, which enabled its citizens to:
Be part of the formal system through digital identity (Aadhaar).
Be able to reach the national (and, increasingly, international) marketplace through a fast payment system (Unified Payments Interface or UPI).
Safely share personal data without compromising privacy through the Account Aggregator platform built on Data Empowerment and Protection Architecture (DEPA).

Role of Aadhar:

Aadhaar was the first building block of the India Stack, and it has since led to the development of other Lego blocks that have created a superstructure.
At present, more than 1,700 Union and State government schemes have Aadhaar as their crucial infrastructure for its delivery.
A new private sector-friendly Unique Identification Authority of India (UIDAI) is incentivizing Aadhaar usage to make it richer and more meaningful.
Aadhaar holders can voluntarily use their Aadhaar for private sector purposes, and private sector entities need not seek special permission for such usage.
Also, between government departments (intra- and inter-State) Aadhaar data can be shared, but with the prior informed consent of the citizen.
Banks and other regulated entities can store Aadhaar numbers as long as they protect them according to UIDAI security regulations.
These changes will lead to the next leapfrogging of the India Stack as a whole.

DigiYatra and DigiLocker:

DigiYatra and DigiLocker are examples of the kind of greenfield market innovation that can potentially be created on top of Aadhaar.
The United States CLEAR programme(an expedited airport security/airport identity verification process) costs $369 per annum for a family of four.
But, about two lakh passengers have utilised a slightly different variant, the DigiYatra in India, which is totally free of cost for the Indian traveller.
Air passenger traffic in India was estimated to be over 188 million in airports across India in the financial year 2022, out of whom over 22 million were international passengers.
DigiLocker, one of the least known DPIs, has 150 million users and six billion stored documents. This allows users to securely authenticate their documents and certificates, in order to store, verify and share digital documents.
For instance, uploading PDF documents is eliminated with simple consent on the passport application form allowing it to fetch the relevant data from DigiLocker. This has made the process easy and quick.
When DigiLocker was used in a Karnataka Police recruitment drive to verify the academic credentials of candidates, it led to the process being cut down by about six months.
An electronic KYC service is being used by the UIDAI information system to authenticate a user’s identity. It significantly lowers the cost of paper and provides instant verification. More than 13.8 billion people have undergone e-KYC since January 2023.

UPI’s impact:

Unified Payment Interface (UPI) plays a significant role by simply registering consumers on a VPA (Virtual Payment Address), to facilitate the transfer of money digitally, securely, and instantaneously from any bank account to any other bank account (individuals or merchants) without having to go through complicated online or offline procedures.
It has now crossed eight billion transactions per month and transacts a value of $180 billion a month, or about a staggering 65% of India’s GDP per annum.

Significance of DPI:

DPI enables citizens to access a range of services and information from government and private organisations from anywhere, anytime using digital devices like smartphones, laptops, etc.
DPI enables the government to deliver services more efficiently and transparently, reducing corruption and improving governance.
DPI also allows nations to retain strategic control over their digitalisation processes, ensure digital cooperation and strengthen long-term capacity.
DPI makes use of public data to support open innovation models, encouraging the development of new products and services that can benefit citizens and businesses.

11. Civic polls unlikely in Nagaland after move to repeal municipal act

Subject :Polity

Section: PRI / LOCAL GOVT

Concept :

The 60 member Nagaland Assembly has unanimously resolved to repeal the Nagaland Municipal Act of 2001(NMA) with immediate effect, thereby negating the possibility of the State holding the elections to the urban local bodies (ULBs) with 33% of the seats reserved for women.
The Naga Hohos (apex tribal bodies) also threatened to boycott the polls if the government failed to guarantee that holding the civic polls would not violate the provisions of Article 371A of the Constitution of India granting special rights to Nagaland, including protection of Naga customary laws.
The discussion on the NMA2001 was initiated by Parliamentary Affairs Minister K. G. Kenye under Rule 50, which allows deliberation of matters of urgent public importance.
The MLAs representing all political parties participated in the discussion.
Taking note of the stiff opposition to the ULB elections, the House resolved that civic polls cannot be conducted unless the NMA 2001 was repealed and re_placed by another Act that would not be seen as violating the provisions of Article 371A.

Background

Elections for ULB were not conducted since 2004 over the issue of the “unresolved” Naga peace talks, and reservation for women, which several tribal bodies opposed, asserting that it infringes on the special rights for Nagaland guaranteed under Article 371(A) of the Constitution.
An attempt to hold the ULB elections with 33% reservation for women in 2017 triggered a backlash with protesters setting government buildings ablaze. And it also resulted in the resignation of R. Zeliang as the Chief Minister.
On March 9, 2022, representatives from across the Naga society unanimously agreed to ULB elections with 33 per cent reservation for women.
The decision was taken during a consultative meeting of all stakeholders including civil society organisations, churches, tribal bodies, political parties and NGOs convened by the state government in the presence of legislators.
Organisations such as the Naga Mothers’ Association (NMA) have hailed the notification for the ULB polls.

Women Reservation in ULB’s

The 74th Constitutional Amendment of 1992 not only mandated gender reservation but also provided constitutional safeguards to the long due demand for ensuring female representation in the polity at the sub-national level.

The relevant features given in the Article 243T(3) are:

It provided for the women reservation of not less than 33 percent of the total number of seats in the urban local bodies (ULBs) mandatory.
Also, not less than 33 percent of seats are further reserved for the women belonging to SC/ST communities.
At least 33 percent of the offices of chairpersons in urban local bodies are reserved for women.
To ensure that the effect of the reservation is evenly spread across all the geographical areas of the city, the reserve seats are allotted to different territorial constituencies on a rotational basis.

Special Provisions related to Nagaland

Article 371A deals with the special provisions with respect to the State of Nagaland.
Article 371A (1) (b) – the Governor of Nagaland has special responsibility with respect to law and order in the state so long as internal disturbances caused by the hostile Nagas continue.
For instance, under Article 371A (1) (b) of the Constitution, important functions like “transfer and posting of officials” entrusted with the maintenance of law and order of and above the district level will be with the approval of the Governor.

12. UGC to stay out of bid to remove governor as varsity chancellors

Subject: Polity

Concept :

In a move that could justify the decision by certain States to bring legislation removing Governors as Chancellors of State run public universities, the University Grants Commission (UGC) has decided not to interfere in the tussle between Governor and State Governments.
The UGC believes that appointment of Chancellors is under the domain of States, and that it can intervene only when there are anomalies in the appointment of Vice Chancellors.

Role of UGC

Education comes under the Concurrent List, but entry 66 of the Union List — “coordination and determination of standards in institutions for higher education or research and scientific and technical institutions” gives the Centre substantial authority over higher education.
The University Grants Commission plays that standard-setting role, even in the case of appointments in universities and colleges.
According to the UGC (Minimum Qualifications for Appointment of Teachers and other Academic Staff in Universities and Colleges and other Measures for the Maintenance of Standards in Higher Education) Regulations, 2018, the “Visitor/Chancellor” — mostly the Governor in states — shall appoint the VC out of the panel of names recommended by search-cum-selection committees.
Higher educational institutions, particularly those that get UGC funds, are mandated to follow its regulations.
These are usually followed without friction in the case of central universities but are sometimes resisted by the states in the case of state universities.

Governor as Chancellor of State Universities

Hon’ble Governor is ex-officio Chancellor of the State Universities.
As per the provisions of the Act of the concerned University, the Governor appoints the Vice Chancellor on the advice/ in consultation with the State Government.
As Chancellor, the Governor also presides over the Convocation of the State Universities, whenever present.
The Governor as Chancellor has absolute authority. The Governor chairs the Senate and the Syndicate meetings. In his absence the Vice-Chancellor officiates.
As the visitor of the university he can inspect, order and command. The institution runs under his stewardship.
Chancellor also appoints his/her nominees on various bodies like Senate, Syndicate, Board of Management, Selection Committee and Academic Council of the State Universities.
The Chancellor has been entrusted with the powers to enquire into the affairs of the State Universities as per the provisions of the Act.

13. NCLAT upholds CCI’s ₹1337cr fine on Google

Subject: Economy

Section: Msc

Context: the National Company Law Appellate Tribunal (NCLAT) on Wednesday upheld the penalty of ₹1,337 crore imposed on Google by the Competition Commission of India (CCI) for its anti-competitive conduct in the Android ecosystem.

Details:

The appellate tribunal simultaneously set aside CCI’s four critical directions — of the 10 non-monetary directives it issued in its Android ruling of October 20, 2022 — that would have forced Google to change its business model. These relate to the requirement of Google to share its Play Services APIs to OEMs, app developers and its existing or potential competitors; non-restriction of the un-installing of its pre-installed apps by users; allowing app store developers to distribute through Play Store; and not restricting the ability of app developers, in any manner, to distribute their apps through side-loading.

The six non-monetary directions that Google will have to comply with in the next 30 days are: OEMs shall not be restrained from (a) choosing from Google’s proprietary applications to be pre-installed and should not be forced to pre-install a bouquet of applications and (b) deciding the placement of pre-installed apps on their smart devices; licensing of Play Store to OEMs shall not be linked with the requirement of pre-installing Google applications; Google shall not offer any monetary/other incentives to, or enter into any arrangement with, OEMs for ensuring exclusivity for its search services.

Competition Appellate Tribunal vs NCLAT authority over CCI:

The Competition Act, 2007, was enacted after amending Competition Act, 2002, that led to the establishment of the CCI and the Competition Appellate Tribunal.
The government replaced the Competition Appellate Tribunal (COMPAT) with the National Company Law Appellate Tribunal (NCLAT) in 2017.
In 2017 an amendment was made through which the provision of Part XIV of Chapter VI of the Finance Act, 2017 came into operation.

National Company Law Appellate Tribunal

National Company Law Appellate Tribunal (NCLAT) was constituted under Section 410 of the Companies Act, 2013 for hearing appeals against the orders of National Company Law Tribunal(s) (NCLT), with effect from 1st June, 2016.
Objectives
- Hear appeals against the orders passed by NCLT(s) under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC).
- Hear appeals against the orders passed by Insolvency and Bankruptcy Board of India under Section 202 and Section 211 of IBC.
- Hear and dispose of appeals against any direction issued or decision made or order passed by the Competition Commission of India (CCI) – as per the amendment brought to Section 410 of the Companies Act, 2013.
- NCLAT is also the Appellate Tribunal to hear and dispose of appeals against the orders of the National Financial Reporting Authority.
Composition:
- The President of the Tribunal and the chairperson and Judicial Members of the Appellate Tribunal shall be appointed after consultation with the Chief Justice of India.
- The Members of the Tribunal and the Technical Members shall be appointed on the recommendation of a Selection Committee consisting of:
  - Chief Justice of India or his nominee—Chairperson.
  - A senior Judge of the Supreme Court or a Chief Justice of High Court— Member.
  - Secretary in the Ministry of Corporate Affairs—Member.
  - Secretary in the Ministry of Law and Justice—Member.
  - Secretary in the Department of Financial Services in the Ministry of Finance— Member.
Eligibility:
- Chairperson – Should be/been judge of the Supreme Court or should be/been Chief Justice of the High Court.
- Judicial Member – Is/has been a judge of a High Court or is a judicial member of a tribunal for 5 years or more.
- Technical member– Person with proven ability, integrity and standing having special knowledge and experience of 25 years or more (in specified areas).
- Term of office of chairperson and members is 5 years and they can be reappointed for additional 5 years.

Composition of the CCI:

Competition Commission of India (CCI) is a statutory body of the Government of India responsible for enforcing the Competition Act, 2002, it was duly constituted in March 2009.
The commission is a quasi-judicial body which gives opinions to statutory authorities and also deals with other cases.
The Commission consists of one Chairperson and six Members as per the Competition Act who shall be appointed by the Central Government.
The Chairperson and other Members shall be whole-time Members.
Eligibility of members: The Chairperson and every other Member shall be a person of ability, integrity and standing and who, has been, or is qualified to be a judge of a High Court, or, has special knowledge of, and professional experience of not less than fifteen years in international trade, economics, business, commerce, law, finance, accountancy, management, industry, public affairs, administration or in any other matter which, in the opinion of the Central Government, may be useful to the Commission.

14. Fitch flags contagion risk at two Adani Group entities

Subject: Economy

Section: Financial Market

What is a contagion risk?

Contagion risk—which is also referred to as systemic risk—is here defined as the risk that financial difficulties at one or more bank(s) spill over to a large number of other banks or the financial system as a whole

15. In a first in 7 years, RBI rejects all bids for 91-day Treasury bill

Subject: Economy

Section: Financial Market

What are T BILLS?

The government raised fund from financial market in two ways: 1) T bills (treasury bills). 2) Government Bonds.
Treasury bills are typically short-term borrowing tools, with a maximum tenure of 364 days, and available at a zero-coupon rate of interest. These bills are issued at a discount to the published nominal value of government securities (G-secs).
The Government of India issues treasury bills as a type of money market instrument that functions as a promissory note, guaranteeing repayment at a later date.
T-bills are the instruments for raising fund by the government for the short-term up to a year.
These bills are issued by the Central government only and interest rate is determined by the market forces. It is issued at a discount to original value and the buyer gets the original value upon maturity. For example, a Rs 100 treasury bill can be availed of at Rs 90, but the buyer is paid Rs 100 on the maturity date.
They are issued via auctions conducted by the Reserve Bank of India (RBI) at regular intervals. Individuals, trusts, institutions and banks can purchase T-Bills.
The returns on T-bills are influenced by the liquidity as well. When there is liquidity crisis than the yield is higher on the T-bills.
It is considered a very safe financial instrument for zero-risk weightage attached to it.
Banks give treasury bills to the RBI to get money under repo. Similarly, they can also keep it to fulfil their Statutory Liquid Ratio (SLR) requirements.
Treasury bills, or T-bills, have a maximum maturity period of 364 days and thus called money-market instruments.
Currently they are issued in three maturities: 91-day, 182-day and 364-day (earlier 14-day bill was also issued).
T-bills are available for a minimum amount of Rs.25,000 and in multiples of Rs. 25,000.
The 91-day T-bills are auctioned every week on Friday and 182-day and 364-day T-bills are auctioned every alternate week on Wednesdays. The Reserve Bank of India issues a calendar of T-bill auctions.
Government paper with tenor beyond one year is known as dated security. At present, there are dated securities with a tenor up to 20 years in the market

Why did RBI reject all bids?

According to the market participants, most investors sought higher cut-off yields, which were almost closer to the cut-off yield on the 182-day T-Bills, hence RBI rejected all bids. Some dealers said investors were bidding in the range of 7.15-20 percent on these papers.

Why did investors demand higher yields?

According to money market dealers, some mutual funds were facing redemption pressure in their liquid funds. Hence, they sold T-Bills at a higher yield in the secondary market leading to higher demand for cut-off yield in the auction.
The redemption pressure surfaced after a few investors started moving their funds from liquid funds to duration funds, said another bond dealer at a state-owned bank.

How many bids were received?

During the auction, 91-day T-bills received 154 competitive bids worth Rs 45,949.50 crore and 10 non-competitive bids worth Rs 880.711 crore, as per the full auction result release. The notified amount for the security was Rs 9,000 crore.

What was the cut-off on other securities?

The central bank set a 7.2820 percent cut-off yield on 182-day T-Bills and a 7.3064 percent cut-off yield on 364-day T-Bills. It accepts the full amount on 182-day and 364-day T-Bills.
On the 182-day T-Bill, the central bank received 156 competitive bids worth Rs 50,558 crore, and it accepted 43 bids worth Rs 15,963.568 crore.
Similarly, on the 364-day security, the central bank received 140 competitive bids worth Rs 35,745 crore, while it accepted 40 bids worth Rs 13,980.482 crore. It accepted the remaining amount through non-competitive bids on both securities.

16. Uproar in Israel

Subject : International Relations

Section: Msc

Context:

Israel’s planned overhaul of the judiciary had led to massive protests across the country for months.

What exactly do the planned laws propose:

The draft laws propose to change the composition of the nine-member committee that selects judges. This panel currently has the minister of justice and another minister, the Supreme Court president and two judges, two Knesset members, and two representatives of the bar. Under the new proposal, government-nominated members would be in a 7-4 majority in an expanded committee.
The government also wants to enable the 120-member parliament, or Knesset, to override any Supreme Court judgement by a simple majority of 61 votes unless those rulings are unanimous.
Third, it also seeks to scrap the test of “reasonability” which the apex court has previously used to strike out executive practices
The government also wants to allow ministers to choose their legal advisors instead of using independent professionals.

Political and Administrative system of Israel:

Israel is a parliamentary democracy with a multi-party system.
The President of Israel is the head of state and holds a largely ceremonial role.
The President of Israel is elected for a single seven-year term by the Knesset and a separate assembly of local government representatives.
The Prime Minister is the head of government and has the most significant political power and is usually the leader of the largest party in the Knesset or the head of a coalition of parties.
The Knesset is Israel’s unicameral parliament and has 120 members elected for four-year terms through a proportional representation system. The Knesset passes laws, approves budgets, and oversees the work of the government.
Israel has a multi-party system, with parties representing a wide range of political ideologies.
The electoral system in Israel is based on proportional representation, with seats in the Knesset allocated based on the percentage of votes received by each party.
Israel’s electoral threshold is set at 3.25%, meaning that a party must receive at least 3.25% of the total votes cast to be represented in the Knesset.
The Israeli government has three branches: the executive, legislative, and judicial.
The executive branch is headed by the Prime Minister, who appoints other ministers to form the cabinet.
The cabinet is responsible for making policy decisions and implementing laws.
The legislative branch consists of the Knesset, which is responsible for passing laws and overseeing the work of the government.
The judiciary is independent and has the power to interpret and enforce laws.
The Supreme Court of Israel is the highest court in the country and has the power to strike down laws deemed unconstitutional.
Israel is divided into six administrative districts, each headed by a governor appointed by the Ministry of the Interior.

The districts are further divided into municipalities, which are responsible for local government functions such as education, health, and sanitation.