Monthly Current Affairs February 2020

Easy to PICK251 - “UPSC Monthly Magazine” Foodgrain production set to touch a record high Syllabus subtopic: Major Crops - 10% higher than the long-period Cropping Patterns in various parts of the average for the season. country  This helped farmers rake in rabi or Prelims and Mains focus: about the winter harvests that were larger-than- foodgrain production in India and expected in almost all crops. challenges associated  Thus, the estimate for total foodgrain News: The Agriculture Ministry’s second output of 291.95 million tonnes is advance estimates were released recently. more than six million tonnes higher than the 285.21 million tonnes Key highlights produced in 2018-19.  Total foodgrain production is projected  The Agriculture Ministry expects rice to scale an all-time high of almost 292 production to reach 117.47 million million tonnes in 2019-20, propelled tonnes, slightly higher than the by record production of both rice 116.48 million tonnes produced in and wheat. 2019.  Production of several crops, including  Wheat, which is only grown in the rice and major pulses, was lower rabi season, will see a major surge in than targeted in the kharif or the production at 106.2 million tonnes in monsoon season. However, the the current year, from the 103.6 million abundance of late monsoon rains tonnes in 2018-19. resulted in cumulative rainfall that was

Easy to PICK252 - “UPSC Monthly Magazine” Challenges  Despite the government’s drive to encourage millets and nutri-cereals, production failed to match targets this year, with the estimate pegged at 45.24 million tonnes.  Pulses production was also estimated to come in lower-than targeted 23 million tonnes, although it was still higher than the previous year’s harvest. Most pulses are dry land crops, grown on land without irrigation and the delay in monsoons in many areas hit kharif harvests although rabi production improved.  It was a similar story with oil seeds. Production was estimated at almost 342 million tonnes, higher than last year but still lower than the target for this year.  Sugarcane is the only major crop where this year’s estimated production of 3,538 million tonnes was significantly lower than last year’s output of 4,054 million tonnes. A glut in sugar production over the last few years had resulted in a crash in prices and an increase in payment arrears from sugar mills to cane farmers.

Easy to PICK253 - “UPSC Monthly Magazine” The link between small savings and deficits Syllabus subtopic: Government News: Getting rid of exemptions under a new tax regime proposed by the budget Budgeting. could make small savings less attractive for individuals and dry up this source of Prelims and Mains focus: about the funds for the government. exemptions in this year’s budget and its impact on savings and deficit How do exemptions apply to small How are the rates of interest savings? determined?  Small savings schemes are savings  The central government fixes the instruments such as the Public interest rates on small savings Provident Fund, National Savings schemes. A committee led by former Certificate and Sukanya Samriddhi. Reserve Bank of India (RBI) deputy These are central government schemes governor Shyamala Gopinath has that allow depositors tax exemption recommended that interest rates of on such deposits up to a particular various schemes be 25-100 basis amount in a fiscal. points more than the yields of government bonds of similar  The deposits received under these maturity. schemes are held with the National Small Savings Fund (NSSF). The  A high-level advisory group, however, Centre offers an attractive tax-free argued for the need to link the small rate of return on these instruments for savings rate with RBI’s repo rate to depositors. Many depositors hold their allow rates to come to market level and deposits in a combination of a not be kept artificially elevated. The conventional savings account and government continues to have some small savings schemes to save taxes to flexibility in determining the interest get a higher return on deposits. rate of these schemes.

Easy to PICK254 - “UPSC Monthly Magazine” Okay, but how does the government utilize NSSF? The government uses NSSF as a source of funds for some of its investments through the National Highways Authority of India (NHAI) bonds and also to finance part of its deficit through government securities. NSSF buys these securities and collects the interest on them. Without exemptions in the new tax regime, this steady source of funds may not be available to the government. How do small savings impact deficits? Economists has said how state governments till 2003 could borrow from people in the form of postal savings. The rates on postal savings were above the average interest rates and there was no limit on borrowings for the states. The high interest rate led to a 15.2% growth in small savings rates per annum from 1995- 2003 compared to 11% nominal growth. This coincided with high state deficits as there was no fiscal discipline and state governments could borrow as much as they wanted through postal savings. Will a new tax regime bring fiscal discipline? The removal of exemptions will have implications for the quality of our fiscal statistics. The magnitude of the impact in the short run would depend on how many people switch to the new tax regime. As more people move to the new regime, the Centre will find limited funds in NSSF, which it could earlier tap to finance its deficit or utilize it for off-budget borrowing. Removing exemptions will bring in self-discipline in the way the Centre uses public money.

Easy to PICK255 - “UPSC Monthly Magazine” Pledging of Shares Syllabus subtopic: Effects of  Further, according to the lenders — as Liberalization on the Economy, Changes stated in an order by the Securities in Industrial Policy and their Effects on Appellate Tribunal — Karvy Stock Industrial Growth. Broking had even given an undertaking that the securities that Prelims and Mains focus: about the were being pledged were its own and move; benefits and significance; about that they did not belong to clients. share pledging Changes made News: The Securities and Exchange  Onus of bonafide pledge created from Board of India (SEBI) has amended the SEBI (Depositories and Participants) margin account of a stock broker will Regulations by including an additional now lie with the depository following explanation that states that ‘pledge’ the SEBI amendment. would also refer to ‘re-pledge of securities for margin or settlement  In the past, pledge from the margin obligations.’ account was directly routed by the stock broker using the power of Why? attorney route, without the active A minor tweak in the manner ‘pledge’ is consent or approval of the beneficiary defined in the regulatory laws is holder of shares. Now consent of expected to go a long way in minimising beneficial owner will be necessary. instances where stock brokers misuse client securities by pledging such shares Likely benefits for their own benefit in terms of meeting  Instances where a client’s their margin requirements. funds/securities were diverted or Background misutilised by brokers toward margin  This assumes significance as the recent or settlement obligations of itself, or for some third party, or for raising past has seen few instances of loans against shares on its own brokers pledging client securities to account, will be minimised. raise funds from banks and non- banking finance companies (NBFCs).  With the insertion of this explanation, More importantly, this was done depository participants of both the without the clients being aware that pledger and the pledgee will have to their securities were being misused in inform the pledger and the pledgee such a manner. respectively of the entry of creation of the re-pledge.  The most high-profile matter in the recent past was of Karvy Stock The latest SEBI move comes close on the Broking in which the Hyderabad- heels of the regulator developing an in- based firm raised funds from entities house system to track the movement of such as Bajaj Finance, ICICI Bank, client securities that are collected as HDFC Bank and IndusInd Bank by collateral by the brokers. pledging client securities.

Easy to PICK256 - “UPSC Monthly Magazine” What is a pledged share? What should be the approach of retail Simply put, it is taking loan against the investors in stocks with high pledged shares one holds. It can be done by both promoter holding? investors and promoters.  Shares of companies with high pledged Why do promoters pledge shares? promoter holding tend to witness One of the methods promoters use to raise higher volatility. The risk is assessed finance is to take loans against their on the basis of the amount of pledged holding in their company from banks or shares as a percentage of the total non-banking financial companies. For shareholding. these financial institutions, these shares are collateral. Promoters can raise funds  A stock is considered a risky bet if for various reasons-for meeting pledged shares are more than 50% of requirements of the business or personal the total shares in the company so needs. ideally, retail investors should avoid such stocks. Can banks sell the shares pledged by promoters?  Banks can sell the pledged shares if the price of the stock falls closer to the value agreed in the contract between them and the company. Typically, the amount that is lent by banks/NBFCs to promoters is less than the market value of the shares.  This shortfall is the margin is the amount that these lenders retain as security. In case the stock price falls, lenders ask the promoter to provide more cash or shares to top up this margin. If the promoters are not able to top up the collateral, the lenders can sell the shares to maintain this margin. Conversely, revoking of pledged shares by promoters is seen as a positive sign. What is the risk for retail investors in this? High promoter pledged shares can wreak havoc in a stock if price continues to fall and lenders sell these shares in the market. The sudden supply of shares can lead to further price fall and is a risk for retail investors who may have to sell the shares for a significant loss.

Easy to PICK257 - “UPSC Monthly Magazine” Force Majeure Clause Syllabus subtopic: Indian Economy and liability or obligation when they are issues relating to Planning, Mobilization of prevented by such events from Resources, Growth, Development and fulfilling their obligations. It is an Employment. extraordinary provision that allows them to wriggle out of liabilities in Prelims and Mains focus: about the move case they are unable to fulfill their and its implications; about force majeure contractual obligations. clause Significance News: The government said supply chain The move is a potential relief for disruptions caused by the novel companies facing difficulty in receiving coronavirus (Covid-19) outbreak in shipments from China due to issues like China would allow companies to invoke shutdown of operations there or a hold-up force majeure clause at the ports in India. Background Sectors facing supply chain issues  The announcement comes a day after  Sectors like pharmaceutical, chemicals Finance Minister met several industry (such as paints and tyre manufacturing) and solar equipment were “very vocal” representatives to take stock of the about disruptions in their supply chain. situation, announcing the government would “speedily” formulate measures  Today, when their raw materials have to minimise its impact on sectors. to come, there is a delay, or the products come, but the papers  The Department of Expenditure in a (necessary paperwork from China for notification dated February 19 advised Indian customs) don’t come. So the ministries that the impact on supply disruption is felt increasingly by these chains due to the spread of the virus three. was a fit case for the invocation of the force majeure clause.  Some micro, small and medium enterprises (MSMEs) had been facing What is the force majeure clause? delayed and staggered raw material supply, which had been impacting  A ‘force majeure’ means their ability to manufacture and send out their products. These MSMEs had extraordinary events or sought flexibility from the banks, as their operations were affected due to circumstances beyond human the outbreak. control, including events like natural Impact of supply chain disruption (CII analysis) calamities that could be described as  The Indian industry is heavily an ‘act of god’. Other events include dependent on China, especially for raw wars, strikes, riots and crimes. materials for various products sold here and exported to other countries. However, events like negligence or wrongdoing and predictable or seasonal rain are not considered force majeure.  A force majeure clause in the contract frees both parties from contractual

Easy to PICK258 - “UPSC Monthly Magazine”  China accounts for a significant share of the top 20 products that India imports from the world, according to an analysis paper by the Confederation of Indian Industry (CII).  According to CII, this includes a 45 per cent share in India’s total electronics imports, a third of machinery and almost two-fifths of the country’s global organic chemical imports. India also sources about 65-70 per cent of active pharmaceutical ingredients used to make several medicines here as well as close to 90 per cent of certain mobile phone parts from China.  “With supply chains disrupted, many enterprises will face working capital shortages and be unable to meet their credit obligations. This will particularly impact smaller firms which can go under, leading to huge disruption in jobs and incomes,” stated CII’s analysis.  The industry body had proposed a “one-time emergency waiver” of NPA regulations under a force majeure clause “given the exigencies of the situation” to quell fears of the impact of the outbreak on credit ratings of enterprises.

Easy to PICK259 - “UPSC Monthly Magazine” Operation Control Centre for goods trains Syllabus subtopic: Infrastructure: Energy,  For the Eastern corridor, targeted to Ports, Roads, Airports, Railways etc. be completed by December 2021, The World Bank loan stands at about $1.86 Prelims and Mains focus: about DFCs billion. and their significance; about DFCCIL  The Western corridor will have a News: The world’s second-biggest similar operation control system at Operation Control Centre for goods trains, Ahmedabad. built in India by the Dedicated Freight Corridor Corporation of India  Once operational, the freight corridor (DFCCIL) is ready to begin operations. will help decongest the existing Indian Railway network, while also About the centre helping increase the average speed of  The centre, built at Prayagraj in goods trains to 70 kmph, from the existing 25 kmph. Uttar Pradesh, will be the ‘nerve- centre’ of the over 1,800 km-long  It will connect the existing ports and eastern dedicated freight corridor. industrial areas for faster movement of  The control centre has a theater which good and will help increase the rail measures 1560 sq m, with a video share in freight transportation from wall of more than 90 m and will be the existing 30% to 45%.” used as a one-stop shop for controlling and monitoring rail About Dedicated Freight Corridor systems, including train operations Corporation of India (DFCCIL) and the power supply system.  DFCCIL is a Public Sector About Dedicated Freight Corridor Undertaking (PSU) corporation run (DFC) by government of India's Ministry of  The Dedicated Freight Corridor, Railways to undertake planning, development, and mobilisation of touted as one of the biggest financial resources and construction, infrastructure projects in the maintenance and operation of the country, is a 3,360 km stretch Dedicated Freight Corridors. consisting of the Eastern and  The DFCCIL was registered as a Western corridors. company under the Companies Act  Upgrading of transportation 1956 in 2006. technology, increase in productivity  It is both enabler and beneficiary of and reduction in unit transportation other key Government of India cost are the focus areas for the project. schemes, such as and Industrial  Carbon emission reduction from DFCs corridor, Make in India, Startup India, will help DFCCIL claim carbon Standup India, Sagarmala, Bharatmala, credits. UDAN-RCS, Digital India, BharatNet.  The Eastern corridor, which is being  Carbon emission reduction from DFCs funded by the World Bank, will run will help DFCCIL claim carbon from Ludhiana in Punjab to Dankuni credits. near Kolkata, traversing Haryana, Uttar Pradesh, Bihar and Jharkhand.

Easy to PICK260 - “UPSC Monthly Magazine” Wildlife Crime Control Bureau (WCCB) Syllabus subtopic: Conservation, Guwahati, Amritsar and Cochin; and Environmental Pollution and Degradation, five border units at Ramanathapuram, Environmental Impact Assessment. Gorakhpur, Motihari, Nathula and Moreh. Prelims and Mains focus: about the species and conservation status; about Mandate WCCB and its mandate Under Section 38 (Z) of the Wild Life (Protection) Act, 1972, it is mandated News: Four rare Indian Tent Turtles 1. to collect and collate intelligence were rescued by the Delhi police in north Delhi and were handed over to officials of related to organized wildlife crime the Delhi zoo after inspection by Wildlife activities and to disseminate the same Crime Control Bureau (WCCB). to State and other enforcement agencies for immediate action so as to Indian Tent Turtle (kachuga tecta tecta) apprehend the criminals;  The Indian tent turtle is a species of 2. to establish a centralized wildlife turtle in the family Geoemydidae. The crime data bank; species is endemic to India and Bangladesh. 3. co-ordinate actions by various agencies in connection with the enforcement of  It is listed in schedule I of the the provisions of the Act; Wildlife Protection Act, 1962. Possession of this species is prohibited. 4. assist foreign authorities and international organization concerned to  IUCN status: Least Concern (LC) facilitate co-ordination and universal action for wildlife crime control; About Wildlife Crime Control Bureau (WCCB) 5. capacity building of the wildlife  IT is a statutory multi-disciplinary crime enforcement agencies for scientific and professional body established by the Government investigation into wildlife crimes and of India under the Ministry of assist State Governments to ensure Environment and Forests, to combat success in prosecutions related to organized wildlife crime in the wildlife crimes; and country. 6. advise the Government of India on  The Bureau has its headquarter in issues relating to wildlife crimes New Delhi and five regional offices at having national and international Delhi, Kolkata, Mumbai, Chennai and ramifications, relevant policy and laws. Jabalpur; three sub-regional offices at 7. It also assists and advises the Customs authorities in inspection of the consignments of flora & fauna as per the provisions of Wild Life Protection Act, CITES and EXIM Policy governing such an item.

Easy to PICK261 - “UPSC Monthly Magazine” Consumer Price Index (CPI) Syllabus subtopic: Indian Economy and News: The RBI governor has stressed the issues relating to Planning, Mobilization of need to review the monetary policy Resources, Growth, Development and Employment. framework. An inflation targeting Prelims and Mains focus: about CPI and framework is effective when the measure its significance; about inflation targeting of inflation is accurate. But there are concerns about CPI’s composition. What is CPI and how is it computed? consumers in a country purchase.  The consumer price index (CPI) The weights are adjusted with changes in consumption patterns. measures the changes in the prices of goods and services that are How are these weights for CPI derived? consumed by households. The rural  In India, the National Statistical CPI index is based on the consumption basket of rural India, Office conducts the Consumption while urban CPI focuses on the urban Expenditure Survey (CES) that helps basket of consumption. us understand the consumption basket  The index is a monthly series, which of various consumers. measures inflation in the form of a change compared to the same month  Suppose a consumer spends Rs.10 out in the previous year. of Rs.100 on food, then the share of  A simplistic understanding of the food in his consumption is 10%. CES computation of CPI would be to gives us these shares for the overall consider it as a weighted average of economy. The government has not the goods and services that the released the 2017 CES because of

Easy to PICK262 - “UPSC Monthly Magazine” inconsistencies. Therefore, the weights of the CPI series would not be adjusted using this survey.  Our current CPI weights are based on the 2011-12 survey and will be updated once we have a new and reliable consumption survey. Why is it important to update CPI weights? As our consumption pattern shifts, a CPI based on old weights is likely to underestimate or overestimate inflation. For example, the share of expenditure on transistors, which have become obsolete, has gone down. If prices of transistors increase, old shares would give a higher inflation rate than what consumers experience. How will this impact inflation targeting? An inflation targeting regime is as good as the quality of inflation statistics. This is important as several other inflation indicators seem to be below 4%, even as food inflation rose, driven by onion prices. As such, we may be overestimating inflation, but there have been times when we have underestimated it. Recently, some authors argued the need to move to a broader measure of inflation target that could combine the GDP deflator, wholesale price index and CPI to avoid overdependence on a single indicator. How do we get a right estimate of inflation? The share of consumption expenditure has changed between the 2011 and 2017 National Accounts Statistics (NAS), with a decline in the share of expenditure on food. The official CPI series could be more sensitive to food inflation. Given that the quality and reliability of the survey data have been questioned over the years, moving towards a CPI derived from the private final consumption data from NAS must be considered.

Easy to PICK263 - “UPSC Monthly Magazine” Thal Sena Bhawan Syllabus subtopic: Various Security  The ‘Thal Sena Bhawan’ is Forces and Agencies and their Mandate. conceptualised as a multi-storey green building adopting Green Rating for Prelims and Mains focus: about the Integrated Habitat Assessment details of new structure and its (GRIHA) norms and will house significance; about GRIHA offices, residential area for security personnel and basic amenities. News: Defence Minister performed the stone-laying ceremony for the proposed  Approximately 7.5 lakh sq.m. of area ‘Thal Sena Bhawan’ of the Army in will be constructed to house the office Delhi cantonment. complex and parking. A total of 6,014 offices will be constructed, which will About Thal Sena Bhawan house offices for 1,684 officers — both  The building spread over 39 acres military and civilian — and 4,330 sub staff. opposite Manekshaw centre in Delhi cantonment will bring together Army  It is proposed to construct this headquarters split in eight pockets structure in five years. The Army chief across Delhi. Presently, the Army would continue to sit in South Block in Headquarters is split into eight close proximity to the Defence pockets across South Block, Sena Minister and the present Army HQ Bhawan, Hutments Area, R.K. Puram, ‘Sena Bhawan’ will continue to exist, Shankar Vihar and other places, the though some functions would be Army said. The work was sanctioned shifted to the new complex. to make up the existing deficiency of 44% and also to accommodate the Army Headquarters in one place.

Easy to PICK264 - “UPSC Monthly Magazine” Significance aspects such as energy consumption,  The new structure will bring together waste generation, renewable energy adoption, etc. so as to manage, control various pockets of the Army and reduce the same to the best headquarters spread across Delhi under possible extent. one roof thereby improving the working efficiency, while reducing  With over two decades of experience the carbon footprint and logistics on green and energy efficient requirements. It would also allow buildings, The Energy and Research more family time for all personnel at Institute (TERI) has developed peace posting in Delhi. GRIHA (Green Rating for Integrated Habitat Assessment),  Earlier there was movement of about which was adopted as the national 3,000-4,000 vehicles every day from rating system for green buildings by the various Army establishments in the Government of India in 2007. the city. This would be not required once the ‘Thal Sena Bhawan’ comes  This tool has been adopted by the up. Ministry of New and Renewable Energy. This tool, by its qualitative  The newly created Department of and quantitative assessment criteria, is Military Affairs (DMA) headed by able to ‘rate’ a building on the degree the Chief of Defence Staff (CDS) will of its ‘greenness’. work from here. This will help in jointness. About Green Rating for Integrated Habitat Assessment (GRIHA)  GRIHA is a rating tool that helps people assesses the performance of their building against certain nationally acceptable benchmarks. It evaluates the environmental performance of a building holistically over its entire life cycle, thereby providing a definitive standard for what constitutes a ‘green building’. The rating system, based on accepted energy and environmental principles, will seek to strike a balance between the established practices and emerging concepts, both national and international.  GRIHA attempts to minimize a building’s resource consumption, waste generation, and overall ecological impact to within certain nationally acceptable limits / benchmarks. It attempts to quantify

Easy to PICK265 - “UPSC Monthly Magazine” Water table dipping in Bihar Syllabus subtopic: Conservation, table across Bihar. A recent survey by the Environmental Pollution and Degradation, state government showed that 34,559 Environmental Impact Assessment. water bodies had been encroached upon. So far, temporary encroachment has been Prelims and Mains focus: about the cleared from 20,432 water bodies and findings of the report; challenges and steps permanent encroachment from 2,123 water taken bodies. News: The latest telemetry report by the Challeneges and their remedies Bihar Minor Water Resources Department  The depleting groundwater level is a was released recently. crisis that is emerging worldwide, but Key findings of the report in Bihar it is getting acute due to  The Water table has dipped 1. loss of forest and vegetation, 2. dependency on groundwater and alarmingly across Bihar between depletion in surface water resources, August 2019 and February 2020. 3. overexploitation of groundwater with the coming of powerful pumps, and  The dips in water table range from 13 4. cultivation of high water-consuming feet to 25 feet. The situation is crops. particularly alarming in the Seemanchal and the southern part of  There is an urgent need to check soil the state. erosion, revive traditional water management practices and more  About 10 districts, including Katihar efficient use of water in agriculture. and Begusarai, reported a dip of 17 feet Also, roof rainwater harvesting to 25 feet in its water table and Patna system should be used to take care of too reported a 17-feet dip. The report urban needs. also says the water table in the state has gone down from 10 to 200 feet in  The State govt. have initiated several the last 10 years. measures under the Jal, Jeevan, Hariyali mission to improve the water  According to the report, the table. An exercise to remove groundwater level in Bihar earlier encroachment from water bodies and ranged from 40 feet to 200 feet, but the clear them of silt is being conducted on recent dips have brought down the a mass scale and the results could start range to between 60 and 250 feet. showing from next year. Under the While this could lead to water crisis mission, about 3,000 ponds are being during summers, a drought could cleaned and over 2,000 checkdams aggravate the problem. have been planned in small rivers. All these measures are part of the project Why water table is dipping in Bihar? due for completion by 2022. Uneven distribution of rains, lack of water- harvesting measures and encroachment upon water bodies are being cited as the major reasons for the alarming dip in water

Easy to PICK266 - “UPSC Monthly Magazine” Olive Ridley Turtles Syllabus subtopic: Conservation, inform about the debris deposited by Environmental Pollution and Degradation, the sea, prevent entry of predators like Environmental Impact Assessment. stray dogs and search for turtle carcasses. Prelims and Mains focus: about Olive Ridley Turtles and steps taken for their About Olive Ridley Turtles conservation; about IUCN  There are five species of turtles in News: Preparations are almost done at the Indian waters — Leatherback Rushikulya rookery on the Odisha coast to welcome and protect Olive ridley (Vulnerable), Loggerhead turtles during mass nesting. Odisha has half of the world’s Olive Ridley turtle (Endangered), Hawksbill (Critically population and 90% of India’s turtle population lives in the state. Endangered), Green (Endangered) and Steps taken by the state government Olive Ridley.  To provide security to mother turtles as  In India, sea turtles are protected under well as the eggs from human and the Indian Wildlife Protection Act of predator intervention, the forest 1972. department is erecting an over 5-km- long fence of metal net from  The Olive ridley turtles are the Gokharkuda to Bateswar. This stretch smallest and most abundant of all is the most preferred location for mass sea turtles found in the world, nesting in the Rushikulya rookery. inhabiting warm waters of the Pacific, Atlantic and Indian oceans.  The forest officials have already completed two to three rounds of  The Olive ridley is the most numerous awareness drive at all villages near among the sea turtles found in India the rookery. and is well known for its arribadas, or annual mass nestings when  Fishing in mechanised boats, thousands of turtles migrate to the including trawlers, has been banned. breeding ground to nest The forest department officials are also simultaneously. patrolling the region in two trawlers, two speed boats and a country boat.  Recognized as Vulnerable by the IUCN Red list of Threatened  Debris and plastic waste, like pieces Species. of fishing net, are being removed with the help of locals. There will be regular monitoring of the beach.  The department has set up 11 onshore camps. Personnel at these camps regularly document beach condition,

Easy to PICK267 - “UPSC Monthly Magazine”  International trade in these turtles and their products is banned under CITES Appendix I.  ‘Operation Kachhapa’: Conservation of the Olive Ridley Sea Turtle was launched by the Wildlife Protection Society of India in collaboration with the Orissa State Forest Department and the Wildlife Society of Orissa and other local NGOs. To reduce accidental killing in India, the Orissa government has made it mandatory for trawls to use Turtle Excluder Devices (TEDs), a net specially designed with an exit cover which allows the turtles to escape while retaining the catch.

Easy to PICK268 - “UPSC Monthly Magazine” Malai Mahadeshwara Wildlife Sanctuary Syllabus subtopic: Conservation, What’s next? Environmental Pollution and Degradation,  The sanctuary will be renamed as Environmental Impact Assessment. Malai Mahadeshwara Hill Tiger Prelims and Mains focus: about MM Reserve (MMH TR) with a core area wildlife sanctuary and the tiger reserves of 670.95 sq km spread across Malai mentioned; about NTCA Mahadeshwara Reserve Forest, Hanur Reserve Forest and Yediyarahalli News: Decks have been cleared to notify Reserve Forest. The buffer will be the Malai Mahadeshwara Wildlife spread over 235.19 sq km. Sanctuary in Karnataka’s Chamarajanagar district as a tiger About MM Wildlife Sanctuary reserve. The approval from the National  The sanctuary presently has about 20 Tiger Conservation Authority (NTCA) is expected any time now. tigers as evident in photographs from camera traps in Hanur, Ramapura, P.G. Background Palya, Hoogyam, M.M. Hills and Palar State Board for Wildlife had given its ranges, and wildlife experts vouch for concurrence to declare M.M. Hills its potential to rival the Bandipur- sanctuary as a tiger reserve in January Nagarahole-Wayanad-Mudumalai 2019. A proposal was submitted in May landscape in the years ahead. 2019 but it was returned as additional clarification was required with respect to  This optimism stems from the fact that the delineation of the boundary in the core the MM Hills wildlife sanctuary – area, list of existing settlements and the which is spread over 906.18 sq km – is need to spell out the religious and tourism contiguous to BRT Tiger Reserve zone, etc. Hence, a revised proposal was (584 sq km) on one side, submitted in January 2020 and a Satyamangalam Tiger Reserve presentation made before the NTCA in (1,412 sq km) in Tamil Nadu on the Delhi. other, while the Cauvery Wildlife Sanctuary (1,027 sq km) also borders What does it signify? it, thus providing a contiguous forest  Once notified, Chamarajanagar district cover of over 3,500 sq km that can act as a sink to absorb surplus tiger will have the rare distinction in the population and help increase their country of harbouring three tiger numbers. reserves. It already has Bandipur and Biligiri Ranganatha Temple  Implementation of strict wildlife (BRT) Tiger Reserve within its management and protection measures territorial limits. will enhance the landscape value in increasing the tiger densities as the  Also, with this, Karnataka will have forests has an abundance of prey six tiger reserves, the others being species like gaur, sambar, chital, Nagarahole, Bhadra, and Anshi- four-horned antelope, wild boar, Dandeli, apart from Bandipur and etc., according to authorities who say BRT Tiger Reserves. that studies have proved that the prey density was 5.05 animals per sq km.

Easy to PICK269 - “UPSC Monthly Magazine” Being part of Mysore Elephant Reserve, these forests also support nearly 300 elephants.  There are 39 anti-poaching camps in MM Hills Wildlife Sanctuary and the plan is to double their number once it is elevated to the status of a tiger reserve. This sanctuary and the adjoining landscape – which was once Veerappan’s den and out of bounds for the forest department – had a history of poaching by local community for meat, especially along the forest boundary and fringes. But it has been curtailed over the years thus increasing the density of the prey.  In the justification to declare the sanctuary a tiger reserve, the authorities have stated that this is a unique geographical zone that acts as a bridge between the Western and Eastern Ghats. There are about 285 bird species documented in this landscape as per a 2014 survey. The forests are important not only for tiger, elephants and leopards but also chitals, honey badgers, smooth-coated otter, striped hyena, wild dogs, sloth bear, grizzled giant squirrels, Mahseer fish, etc.

Easy to PICK270 - “UPSC Monthly Magazine” RBI study on digital payments Syllabus subtopic: Indian Economy and reflected in decrease in average value issues relating to Planning, Mobilization of per digital payment transaction. Resources, Growth, Development and Employment.  Many merchants, especially in rural areas, remain unable or unwilling to Prelims and Mains focus: about the RBI accept digital transactions due to study and its key findings network connectivity issues and a reluctance to pay charges for what are News: A Reserve Bank of India (RBI) often low-value transactions. study on the progress of digitisation from cash to electronic was recently released. Cash is still dominant  It is assumed that having high Key findings of the study  Cash still rules, but it is increasingly currency in circulation (CIC) relative to GDP indicates that cash is seen as a way to store value as an highly preferred as a payment economic asset rather than to make instrument. Based on this assumption, payments. India continues to have a strong bias for cash payments.  Although cash is deeply embedded in the payment systems in India, planned  Demonetisation and an active efforts post-demonetisation have growth in GDP brought down the shown a marked shift from cash to CIC as a percentage of GDP to 8.70 digital payments. Over the past five per cent in 2016-17. This increased to years, the demand for high value 10.70 per cent in 2017-18 and to 11.2 denominated currency has outpaced per cent in 2018-19 which, however, is low value denominated currency, less than the pre-demonetisation level which may indicate that “cash is of 12.1 per cent in 2015-16. The rate of increasingly used as a store of value increase is lower indicating a and less for making payments. perceptible shift away from cash.  Both cash and non-cash payment  The notes in circulation (NIC), i.e. instruments fulfil unique needs, and as CIC minus coins in circulation, long as these needs do not change, increased at an average rate of 14 both types of payment instruments are per cent between October 2014 and required to meet the full spectrum of October 2016. Assuming the same user’s needs. growth rate, NIC would have been Rs 26,04,953 crore in October 2019.  India’s growing use of retail digital However, it was Rs 22,31,090 crore, payments, along with the radical indicating that digitisation and reconstruction of its cash economy, reduction in cash usage helped indicates a shift in its relationship reduce NIC by over Rs 3.5 lakh with cash. This is evidenced by the crore. steep growth observed in the retail digital payments. Increasing Conclusion acceptance and convenience of Overall, digital payments in the country digital payments vis-à-vis cash is also have witnessed a compounded growth of

Easy to PICK271 - “UPSC Monthly Magazine” 61 per cent and 19 per cent in terms of volume and value, respectively, over the past 5 years, demonstrating a steep shift towards digital payments. Within the digital payments, retail electronic payments comprising credit transfers (RTGS, NEFT, IMPS and UPI) and direct debits (ECS and NACH) showed rapid growth at 65 per cent and 42 per cent in terms of volume and value, respectively. Stored value cash issued in the form of wallets and prepaid cards showed an increased adoption, with a growth of 96 per cent and 78 per cent in terms of volume and value, respectively.

Easy to PICK272 - “UPSC Monthly Magazine” Central Vista Redevelopment project Syllabus subtopic: Conservation, land-use change not in conformity Environmental Pollution and Degradation, with Delhi’s Master Plan. Environmental Impact Assessment.  The petitioner also prayed that no Prelims and Mains focus: about the permission be granted to cut trees project; about EAC for the expansion and renovation of the Parliament building, News: The Expert Appraisal Committee (EAC), an apex environmental screening About Parliament redevelopment committee has deferred a decision on project clearance to the Parliament  It is part of the Central Vista redevelopment project. Redevelopment project and involves Why? redeveloping the 3-km stretch from  This has been done on the grounds that Rashtrapati Bhavan to the India Gate in Lutyens’ Delhi. there was a dispute, being heard in the Delhi High Court, regarding the land  The revamp, which was announced in on which some of the proposed September, envisages a new structures were to come up. triangular Parliament building that is targeted to be constructed by  The petitioner in the Delhi High Court August 2022, when the country will be has pleaded that no environment celebrating its 75th Independence Day. clearance be given, as the alterations which are proposed will involve

Easy to PICK273 - “UPSC Monthly Magazine” Expert Appraisal Committee (EAC) of  The EC process begins with the project the Environment Ministry  Recommendations of EACs, expert proponent submitting an application committees appointed by the with relevant information about the Environment Ministry play a crucial role in the Ministry’s decision to clear proposed project to the relevant a developmental/infrastructure project. regulatory authority (the MoEFCC or  The EACs’ primary role in the environmental clearance (EC) process the SEIAA). The next stage is the is to give recommendations to the Ministry of Environment, Forest and issuance of detailed and Climate Change (MoEFCC) on project proposals after considering comprehensive Terms of Reference the potential impacts of the project. (ToRs) for the preparation of an EIA  Based on these recommendations, the MoEFCC either rejects the proposal or report by the project proponent. The grants a clearance with conditions which would mitigate the impacts or EACs may intervene to amend compensate for the same. standardised ToRs to address specific What is the process of getting an Environmental Clearance (EC)? What issues with regard to particular kinds of projects require one?  The Central Government issued a projects. Notification under the Environment  The draft EIA report prepared by the (Protection) Act 1986 on 14 September, 2006 requiring certain project proponent, based on the ToRs categories of projects to obtain an EC prior to commencing any project work. and other relevant documents, is then This Notification is popularly referred to as the EIA Notification 2006 as made available in the public domain EIA studies form an important part of the EC process. (offices of local and regional  The categories of projects that require a prior EC, listed in the Schedule to authorities and official websites) for the EIA Notification, include thermal power projects, river valley public consultation. Certain projects power/irrigation projects, mining, industries, airports, highways, solid are exempt from the public waste management projects, etc. Depending on the size and capacity of consultation process, and these are these projects, the EC is either sought from the MoEFCC or from the State listed in the EIA Notification. The Environment Impact Assessment Authority (SEIAA), which is outcome of the public consultation is constituted by the Central Government in each state for this purpose. sent to the project proponent who is expected to respond to the material concerns raised and finalise the draft EIA report.  The final EIA report, the outcome of the public consultation (including minutes and video recording of the hearing), and other relevant documents are then appraised by an EAC. The EAC is expected to undertake a detailed scrutiny of the documents and the project proponent’s presentation, and then recommend the proposal for grant (or rejection) of EC or recommend additional studies before making a final decision. Based on the EAC’s recommendations, the MoEFCC issues its final decision. The MoEFCC normally accepts these recommendations, but it could disagree and ask the EAC to reconsider its recommendations.

Easy to PICK274 - “UPSC Monthly Magazine” FDI policy regarding Special Economic Zones (SEZs) Syllabus subtopic: Effects of  The department stated that compliance Liberalization on the Economy, Changes with all the conditions enumerated in in Industrial Policy and their Effects on the FDI policy and as notified under Industrial Growth. the Foreign Exchange Management Prelims and Mains focus: above the Act (FEMA) would continue to be move and its significance; about SEZs the responsibility of the News: Goods procured from units in manufacturing entity. special economic zones (SEZ) by single brand retailers, owned by foreign What are the FDI rules regarding companies, would qualify for meeting SEZs? the mandatory 30% local sourcing As per the foreign direct investment (FDI) norms, the government said in a rules, 100% overseas investment is clarification. allowed in the sector but sourcing of 30% of the value of goods procured is Background mandatory from India for such companies having FDI beyond 51%. The statement came in the wake of the What are Special Economic Zones? government having received  SEZs, developed as export hubs, are representations from various business treated as foreign territory in terms of customs laws. Procurement of entities seeking clarification whether goods and services from units in these zones are treated as imports. sourcing of goods from units located in  In January 2018, the government allowed 100% FDI in the sector, SEZs would qualify as sourcing from India permitting foreign players in single brand retail trade to set up own as per the FDI policy. shops in India without government approval. Details The Department for Promotion of Industry and Internal Trade (DPIIT) said goods which are proposed to be sourced by a single brand retailer from SEZ units will have to be manufactured in India.

Easy to PICK275 - “UPSC Monthly Magazine” 100% FDI in Insurance Intermediaries share holding of foreign investors  DPIIT notified the government's shall undertake measures including incorporation as a limited company decision to allow 100% FDI in under the provisions of the Companies insurance intermediaries under the Act 2013 and that at least one from automatic approval route. among the chairman of the board of directors or the CEO or principal  Intermediary services include officer or MD of the company shall insurance brokers, reinsurance brokers, be a resident Indian citizen. insurance consultants, corporate agents, third-party administrators,  It also said the intermediary shall surveyors and loss assessors. take permission of the Insurance Regulatory and Development  The FDI policy earlier allowed 49% Authority (IRDA) for repatriating foreign investment in the insurance dividend and not make payments to the sector, which includes insurance foreign group or promoter or associate intermediaries. entities beyond what is necessary or permitted.  As per the press note, the insurance intermediary that has majority

Easy to PICK276 - “UPSC Monthly Magazine” Centre to sell partial stake in LIC Syllabus subtopic: Effects of Present Scenario Liberalization on the Economy, Changes  LIC is currently governed by the in Industrial Policy and their Effects on Industrial Growth. LIC Act of 1956, which enables the state-owned insurer to obtain a special Prelims and Mains focus: about the dispensation in several areas, including disinvestment plan and its benefits; about higher stakes in companies beyond the LIC limit set by the insurance sector regulator. News: The government is working on the modalities of Life Insurance  The government currently owns 100 Corporation of India (LIC) share sale per cent stake in LIC and 47.11 per which is India’s largest and oldest life cent equity in IDBI Bank, which is insurer. majority-owned by LIC with 51 per cent equity in the stressed lender. Background  The Budget 2020-21 announced an What’s next?  The govt. is examining a number of ambitious disinvestment agenda, aiming to raise Rs 2.1 lakh crore legal issues post which a proposal will through stake sales next year, be taken to the Cabinet for its including plans to sell part of the approval. Discussions are underway government’s stake in LIC, the with the law department. country’s largest insurer, through an initial public offering (IPO).  The government will have to first amend the LIC Act before taking the  The Centre also proposed to sell its Corporation public. The Department equity in the stressed IDBI Bank to of Financial Services is working on the private, retail and institutional structuring, modalities and timing of investors through the stock exchange. the proposed IPO of LIC. About the move What could be the benefits?  The sale of govt’s stake in LIC will be  Listing of the Corporation’s shares on carried out depending upon stability the market is expected to lead to more of markets, and an initial 5 per cent disclosures of investment and loan equity can be sold in the market. portfolios of the Corporation as well as better corporate governance.  It is a complex exercise and the work has already started to seek necessary  Share sale of LIC, which was set up in approvals for selling shares in the 1956, is expected to generate market. significant investor interest given its dominant position. LIC had 66.24 per  Even after the listing of LIC, the cent market share in total first-year government will continue to provide premium and 74.71 per cent share in sovereign guarantee for all policies new policies in 2018-19, as per the issued by the Corporation. insurer’s latest available Annual Report.

Easy to PICK277 - “UPSC Monthly Magazine” About LIC  Life Insurance Corporation of India is an Indian state-owned insurance group and investment corporation owned by the Government of India.  It was founded on September 1, 1956 when the Parliament of India passed the Life Insurance of India Act that nationalized the insurance industry in India. Over 245 insurance companies and provident societies were merged to create the state-owned Life Insurance Corporation of India.  Life Insurance Corporation of India settled 26 million claims in 2018-19. It has 290 million policy holders.  The insurer’s total assets had touched an all-time high of Rs 31.11 lakh crore in 2018-19, an increase of 9.4 per cent.  The Corporation realised a profit of Rs 23,621 crore from its equity investment during financial year 2018- 19, down 7.89 per cent from Rs 25,646 crore in the previous fiscal. Other disinvestments on the anvil  The share sale in IDBI Bank is likely through the offer for sale route. Even though IDBI Bank is categorised as a private bank, sale of government stake could act as a test case for privatisation of state-owned banks.  Apart from LIC and IDBI Bank stake sale, the government has also lined up privatisation of BPCL, Container Corporation of India, Shipping Corporation of India and Air India in the next financial year.

Easy to PICK278 - “UPSC Monthly Magazine” Fiscal deficit touches 128.5% of Budget Estimate Syllabus subtopic: Indian Economy and every year to bridge the gap between issues relating to Planning, Mobilization of its income and expenditure. Resources, Growth, Development and Employment. 3. Capital and revenue expenditure: Expenditure that does not create any Prelims and Mains focus: about the asset, such as subsidies and interest govt’s fiscal deficit target; about various payments, is revenue expenditure. terms used in the budget Spending to create assets such as highways, buildings and dams as well News: The fiscal deficit touched 128.5 per as loans given by the centre to the cent of the whole-year Budget target states come under capital during the April-January period. expenditure. Background 4. Direct and Indirect Taxes: Direct  The deficit in the year-ago period was taxes are the one that fall directly on individuals and corporations. For 121.5 per cent of the corresponding example, income tax, corporate tax target. etc. Indirect taxes are imposed on goods and services. They are paid by  The government had targeted to consumers when they buy goods and restrict the fiscal deficit (RE) at Rs services. These include excise duty, 7,66,846 crore for the year ending customs duty etc. March 31, 2020. 5. Revenue Deficit: The difference  Finance Minister had raised the fiscal between revenue expenditure and deficit target to 3.8 per cent of the revenue receipt is known as revenue GDP, from 3.3 per cent pegged deficit. It shows the shortfall of earlier for 2019-20 due to revenue government's current receipts over shortage. current expenditure. Budget related terms you should know 6. Tax revenue: The primary source of An annual financial statement for the income for the government. The Union of India that contains the government funds its expenditure by government's revenue and expenditure for either directly taxing income of a given fiscal year, the Union Budget is a individuals/companies or by taxing massive and complex document. goods and services consumed by people (indirect taxes). 1. Gross domestic product (GDP): The added value of output of all productive 7. Non-tax revenue: Additional sources sectors in the economy as measured by of revenue for the government other the Central Statistics Office. than taxes. This includes revenues from interest receipts, spectrum 2. Fiscal deficit: Total additional auction and disinvestment, among borrowings made by the government other things.

Easy to PICK279 - “UPSC Monthly Magazine” 8. Fiscal policy: It is the government 14. Revised Estimates: Revised Estimates actions with respect to aggregate levels are mid-year review of possible of revenue and spending. Fiscal policy expenditure, taking into account the is implemented though the budget and rest of expenditure, New Services and is the primary means by which the New instrument of Services etc. government can influence the Revised Estimates are not voted by economy. the Parliament, and hence by itself do not provide any authority for 9. Capital Budget: The Capital Budget expenditure. Any additional consists of capital receipts and projections made in the Revised payments. It includes investments in Estimates need to be authorized for shares, loans and advances granted by expenditure through the Parliament's the central Government to State approval or by Re-appropriation Governments, Government companies, order. corporations and other parties. 15. Excess Grants: If the total expenditure 10. Revenue Budget: The revenue budget under a Grant exceeds the provision consists of revenue receipts of the allowed through its original Grant and Government and it expenditure. Supplementary Grant, then, the excess Revenue receipts are divided into tax requires regularization by obtaining the and non-tax revenue. Tax revenues Excess Grant from the Parliament constitute taxes like income tax, under Article 115 of the Constitution corporate tax, excise, customs, service of India. It will have to go though the and other duties that the Government whole process as in the case of the levies. The non-tax revenue sources Annual Budget, i.e. through include interest on loans, dividend on presentation of Demands for Grants investments. and passing of Appropriation Bills. 11. Finance Bill: The Bill produced 16. Minimum Alternative Tax (MAT): immediately after the presentation of The Minimum Alternative Tax is a the Union Budget detailing the minimum tax that a company must Imposition, abolition, alteration or pay, even if it is under zero tax limits. regulation of taxes proposed in the Budget. 12. Vote on Account: The Vote on Account is a grant made in advance by the parliament, in respect of the estimated expenditure for a part of new financial year, pending the completion of procedure relating to the voting on the Demand for Grants and the passing of the Appropriation Act. 13. Budget Estimates: Amount of money allocated in the Budget to any ministry or scheme for the coming financial year.

Easy to PICK280 - “UPSC Monthly Magazine” Delhi water fails to clear ISO norms Syllabus subtopic: Conservation,  It was found that all the drinking water Environmental Pollution and Degradation, samples drawn from Delhi were non- Environmental Impact Assessment. conforming in one or more requirements as per IS 10500:2012 Prelims and Mains focus: about the [specification for drinking water], contamination in drinking water; about concluded a 64-page report filed by the BIS; about ISO standards Department of Laboratory Policy and Planning Department of the BIS. News: None of the drinking water samples randomly collected from across Delhi Reasons for water contamination conforms to the ISO standards of purity  One of the main reasons for in one or more requirements, the Bureau of Indian Standards (BIS) informed the contamination in Delhi was leaking Supreme Court. pipes. Background  Coliform contamination occurs when  On January 13, the court ordered the faecal matter gets mixed with treated water supplied to consumers. pollution control board and the BIS to Ultimately, consumers face dangerous conduct a random check of water gastrointestinal diseases, like quality in Delhi and submit a report in dysentery, as a result of this a month. The BIS report said it drew contamination. samples from various locations across Delhi and 20 other State capitals under About Bureau of Indian Standards an integrated scheme. (BIS)  The Delhi government has maintained 1. The Bureau of Indian Standards (BIS) that potable water in the national is the national Standards Body of capital is safe. The re-inspection has India working under the aegis been ordered for further clarity. of Ministry of Consumer Affairs, Food & Public Distribution. About the report and its findings  In its report, ‘Report of Testing of 2. It is established by the Bureau of Indian Standards Act, 1986. Piped Drinking Water Samples Drawn from Delhi’, filed on February 19 in 3. The Minister in charge of the the court, the BIS said it had focused Ministry or Department having on water supplied by city administrative control of the BIS is the municipalities, corporations, water ex-officio President of the BIS. boards, local bodies. It said the samples were sent for testing against 4. Composition: As a corporate body, it 47 out of 48 parameters (excluding has 25 members drawn from Central or radiological test). These covered State Governments, industry, scientific organoleptic and physical test, and research institutions, and consumer chemical test, toxic substance, organisations. bacteriological, virological and biological test.

Easy to PICK281 - “UPSC Monthly Magazine” 5. It also works as WTO-TBT specifications for products, services (Technical Barriers to Trade and systems, to ensure quality, safety Agreement) enquiry point for India. and efficiency. They are instrumental in facilitating international trade. About International Organization for Standardization (ISO)  ISO has published 23056 International Standards and related documents,  ISO is an independent, non- covering almost every industry, from technology, to food safety, to governmental international agriculture and healthcare. ISO International Standards impact organization with a membership of everyone, everywhere. 164 national standards bodies.  Regulators and governments count on ISO standards to help develop better  Through its members, it brings regulation, knowing they have a sound together experts to share knowledge basis thanks to the involvement of and develop voluntary, consensus- globally-established experts. based, market relevant International Standards that support innovation and provide solutions to global challenges.  Its Central Secretariat in Geneva, Switzerland, coordinates the system and runs day-to-day operations, overseen by the Secretary General. Governance Structure  The General Assembly is the overarching organ and ultimate authority of the Organization. It is an annual meeting attended by our members and our Principal Officers.  The ISO Council is the core governance body of the Organization and reports to the General Assembly. It meets three times a year.  The management of the technical work is taken care of by the Technical Management Board, which reports to Council. This body is also responsible for the technical committees that lead standard development and any strategic advisory boards created on technical matters. Whar are standards?  International Standards make things work. They give world-class

Easy to PICK282 - “UPSC Monthly Magazine”