💥Join UPSC 2027,2028 Mentorship (July Batch) + XFactor Notes & Microthemes PDF
Talk to Mentor

Civilsdaily

Login

Distribution: weekly

  • Who are the Bru Tribals?

    Non-Brus of Tripura has proposed six places for settling the displaced Brus from Mizoram and set a limit for the number of families to be accommodated in two subdivisions that have borne the brunt of the 23-year-old refugee crisis.

    Try this PYQ:

    Q. With reference to ‘Changpa’ community of India, consider the following statement:

    1. They live mainly in the State of Uttarakhand.
    2. They rear the Pashmina goats that yield fine wool.
    3. They are kept in the category of Scheduled Tribes.

    Which of the statements given above is/are correct? (CSP 2014)

    (a) 1 only

    (b) 2 and 3 only

    (c) 3 only

    (d) 1, 2 and 3

    Who are the Brus?

    • Reangs or Brus are the second largest ethnic group in Mizoram.
    • Their exodus in 1997 was spurred by violent clashes in Mamith subdivision, a Reang-dominated area when they demanded the creation of an autonomous council that was vehemently opposed by Mizo groups.
    • Around 34,000 people were forced to live in sub-human conditions in tents in Tripura. No solution could be reached all these years.
    • These people were housed in temporary camps at Kanchanpur, in North Tripura.

    Read the complete thread here:

    [Burning Issue] Bru– Reang Repatriation Agreement

  • In news: Pokkali Rice

    Farmers from West Bengal are betting on the Pokkali variety of rice from Kerala to tide over a crisis-like situation created by severe seawater incursion into paddy fields in vast areas of the Sundarbans after the cyclone Amphan.

    Try this MCQ:

    Q.Which of the following is the striking feature of the Pokkali Rice recently seen in the news?

    a) It is bio-fortified rice for treating malnutrition

    b) It is a saltwater resistant variety of rice

    c) It is healthy rice used to treat diabetes

    d) None of these

    Pokkali Rice

    • The Pokkali variety of rice is known for its saltwater resistance and flourishes in the rice paddies of coastal Alappuzha, Ernakulam and Thrissur districts.
    • The uniqueness of the rice has brought it the Geographical Indication (GI) tag and is the subject of continuing research.
    • It had been in the news because of its uniqueness and also because a group of people in Kerala have been trying to revive the cultivation of the rice variety in the State.

    Why introduce in Sunderbans?

    • About 80% of the rice paddies in the Sundarbans faced the problem of the saltwater incursion.
    • If the Pokkali experiment succeeds, it would be a good step to turn around the fortunes of the farmers.

  • National Education Policy and current status of education

    The article contrasts the targets set in the National Education Polity with the present state of education in the country.

    Key recommendations

    • Redesigning the school curriculum to accommodate early childhood care and education.
    • Ensuring universal access to education.
    • Increasing gross enrolment in higher education to 50% by 2035.
    • Improving research in higher education institutes by setting up a Research Foundation.

    Let’s take stock of the current situation on the above-suggested parameters.

    1) Universal Access to Education

    • Despite the Right to Education Act-2009 retaining children remains a challenge for the schooling system.
    • As of 2015-16, Gross Enrolment Ratio was 56.2% at senior secondary level as compared to 99.2% at primary level.
    • Data for all groups indicates a decline in GER as we move from primary to senior secondary for all groups.
    • This decline is particularly high in case of Scheduled Tribes.

    NEP 2020 recommendations

    • The NEP recommends strengthening of existing schemes and policies which are targeted for such socio-economically disadvantaged groups.
    • Further, it recommends setting up special education zones in areas with a significant proportion of such disadvantaged groups.
    • A gender inclusion fund should also be setup to assist female and transgender students in getting access to education.

    2) GER to 50% in higher education

    • The NEP aims to increase the GER in higher education to 50% by 2035.  
    • As of 2018-19, the GER in higher education in the country stood at 26.3%.
    • The annual growth rate of GER in higher education in the last few years has been around 2%.

    NEP 2020 recommendations

    • The NEP recommends increasing capacity of existing higher education institutes by restructuring and expanding existing institutes.
    • It recommends that all institutes should aim to be large multidisciplinary institutes, and there should be one such institution in or near every district by 2030.
    • Further, institutions should have the option to run open distance learning and online programmes to improve access to higher education.

    3) Restructuring of Higher Education Institutes

    • The NEP notes that the higher education ecosystem in the country is severely fragmented.
    • At present, there is complex nomenclature of higher education institutes (HEIs) in the country such as ‘deemed to be university’, ‘affiliating university’, ‘affiliating technical university’, ‘unitary university’.
    • These shall be replaced simply by ‘university’.

    NEP 2020 recommendations

    • The NEP recommends that all HEIs should be restructured into three categories:
    • 1)  research universities focusing equally on research and teaching.
    • 2)  teaching universities focusing primarily on teaching.
    • 3) degree-granting colleges primarily focused on undergraduate teaching.
    •  All such institutions will gradually move towards full autonomy – academic, administrative, and financial.

    4) National research foundation to boost research

    • The NEP states that investment on research and innovation in India, at only 0.69% of GDP, lags behind several other countries.
    • The total investment on R&D in India as a proportion of GDP has been stagnant at around 0.7% of GDP.
    • Of which 58% of expenditure was by government, and the remaining 42% was by private industry.

    NEP 2020 recommendation

    • To boost research, the NEP recommends setting up an independent National Research Foundation (NRF).
    • The Foundation will act as a liaison between researchers and relevant branches of government as well as industry.
    • Specialised institutions which currently fund research, such as the Department of Science and Technology, and the Indian Council of Medical Research, will continue to fund independent projects.
    • The Foundation will collaborate with such agencies to avoid duplication.

    5) Digital Education

    • The NEP states that alternative modes of quality education should be developed when in-person education is not possible.
    • But let’s look into the accessibility of such mode.
    • As of 2017-18, only 4.4% of rural households have access to a computer (excludes smartphones).
    • Nearly 15% have access to internet facility.  Amongst urban households, 42% have access to the internet.

    NEP 2020 recommendations

    • Several interventions are recommended-
    • (i) developing two-way audio and video interfaces for holding online classes.
    • (ii) use of other channels such as television, radio, mass media in multiple languages to ensure the reach of digital content where digital infrastructure is lacking.

    6) Increasing public spending on education to 6% of GDP

    • Public spending of 6% of GDP was first made by the National Policy on Education 1968 and reiterated by the 1986 Policy.
    • NEP 2020 reaffirms the recommendation of increasing public spending on education to 6% of GDP.
    •  In 2017-18, the public spending on education-includes spending by centre and states-was budgeted at 4.43% of GDP.
    •  In 2020-21, states in India have allocated 15.7% of their budgeted expenditure towards education.
    • States such as Delhi, Rajasthan, and Maharashtra have allocated more than 18% of their expenditure on Education for the year 2020-21.
    • On the other hand, Telangana (7.4%), Andhra Pradesh (12.1%) and Punjab (12.3%) lack in spending on education, as compared to the average of states.

    Consider the question “Examine the provision with regard to increasing research in the country in the National Education Policy 2020.”

    Conclusion

    The National Education Policy is an ambitious document with the potential to transform. What is required is the zeal to implement and assess the progress by analysing the outcomes.

    Source-

    https://www.prsindia.org/theprsblog/national-education-policy-recommendations-and-current-scenario

  • Draft Defence Production and Export Promotion Policy 2020

    India is one of the largest importers of defence equipment. This should have naturally made India a manufacturing hub of the defence equipment. But this is not the case. This article deals with this issue. 

    Context

    Following China’s stance of open belligerence towards India, making war preparedness a top priority. It is against this backdrop, the Defence Production and Export Promotion Policy 2020 was unveiled.

    Key features

    • It aims for domestic output worth ₹1.75 trillion of aerospace and defence goods and services by 2025.
    • Of which exports is aimed at ₹35,000 crore.
    • It has various strategic initiatives that would aid the indigenous development of modern weaponry from hypersonic missiles and ace sensors to stealth submarines and fly-by-wire fighter jets.

    Why India lacks indigenous capacity

    • If India’s dependence on foreign suppliers of armaments was not for lack of trying.
    • Our Defence Research and Development Organisation (DRDO) exists for this very purpose.
    • DRDO scientists claim success in several projects, including the Tejas design.
    • But decisions on procurements for our armed forces are made through a complex process—involving service chiefs, technocrats and politicians—that ends up favouring foreign purchases.
    • This is this convenient, as off-the-shelf wares are readily available abroad.
    • The finer details of defence deals are usually confidential, after all, and the payments huge.
    • By one estimate, India was the world’s third largest military spender in 2019, with a bill of over $71 billion, after the US and China.

    Issues and Challenges in partnership with private players

    • So far, efforts to get our private sector into the act have not fared too well, despite all our schemes to attract them.
    • Long-drawn out acquisition processes may partly be to blame for this.
    • Companies are apprehensive of investment without an assurance of a ready market.
    • But by the time their prototypes are tested and approved for induction by our forces, they risk being outmoded by advances made abroad.
    • In the US, spin-offs from defence research have been behind many technological innovations of everyday utility.
    • So, the knowledge acquired in defence research has the potential to benefit the other sectors as well.

    Consider the question “Being one of the top importers of defence equipment India is well placed to enhance its domestic manufacturing capacity of defence equipment. Yet, India lacks it after repeated attempts to achieve it. Examine the reasons for this and suggest measures to overcome this anomaly.” 

    Conclusion

    If a big push for “made in India” defence systems calls an entire ecosystem of experiments, ideas and technical wizardry into being, it could help our economy leap ahead too.

  • What is Pyrolysis?

    Plastic from used personal protective equipment (PPE) can be transformed into renewable liquid fuels using chemical a process called pyrolysis, says a new study.

    Try this PYQ:

    Q.In the context of which one of the following are the terms ‘pyrolysis and plasma gasification’ mentioned? (CSP 2019)

    (a) Extraction of rare earth elements

    (b) Natural gas extraction technologies

    (c) Hydrogen fuel-based automobiles

    (d) Waste-to-energy technologies

    What is Pyrolysis?

    • Pyrolysis is the thermal decomposition of materials at elevated temperatures in an inert atmosphere.
    • It involves a change in chemical composition. The word is coined from the Greek-derived elements pyro “fire” and lysis “separating”.
    • It is most commonly used in the treatment of organic materials. It is one of the processes involved in charring wood.
    • It is considered as the first step in the processes of gasification or combustion.

    How does it work?

    • In general, pyrolysis of organic substances produces volatile products and leaves a solid residue enriched in carbon, char.
    • Extreme pyrolysis, which leaves mostly carbon as the residue, is called carbonization.
    • The process is used heavily in the chemical industry, for example, to produce ethylene, many forms of carbon, and other chemicals from petroleum, coal, and even wood, to produce coke from coal.

    Applications

    • Aspirational applications of pyrolysis would convert biomass into syngas and biochar, waste plastics back into usable oil, or waste into safely disposable substances.

    Limitations and Concerns

    • The technology requires drying of soil prior to treatment.
    • Limited performance data are available for systems treating hazardous wastes containing polychlorinated biphenyls (PCBs), dioxins, and other organics.
    • There is concern that systems that destroy chlorinated organic molecules by heat have the potential to create products of incomplete combustion, including dioxins and furans.
    • These compounds are extremely toxic in the parts per trillion range.
    • The molten salt is usually recycled in the reactor chamber. However, depending on the waste treated (especially inorganics) and the amount of ash, spent molten salt may be hazardous and require special care in disposal.
    • Pyrolysis is not effective in either destroying or physically separating inorganics from the contaminated medium.
    • Volatile metals may be removed as a result of the higher temperatures associated with the process, but they are not destroyed.
    • When the off-gases are cooled, liquids condense, producing an oil/tar residue and contaminated water.
    • These oils and tars may be hazardous wastes, requiring proper treatment, storage, and disposal.

  • Higher Education Financing Agency (HEFA)

    The JNU has got approval for a fund from the Higher Education Funding Agency (HEFA) for the construction of new infrastructure.

    Try this PYQ:

    What is the aim of the programme ‘Unnat Bharat Abhiyan’? (CSP 2017)

    (a) Achieving 100% literacy by promoting collaboration between voluntary organizations and government’s education system and local communities.

    (b) Connecting institutions of higher education with local communities to address development challenges through appropriate technologies.

    (c) Strengthening India’s scientific research institutions in order to make India a scientific and technological power.

    (d) Developing human capital by allocating special funds for health care and education of rural and urban poor, and organizing skill development programmes and vocational training for them.

    About HEFA

    • HEFA is a joint venture company of Canara Bank and Ministry of Human Resource Development.
    • It provides financial assistance for the creation of educational infrastructure and R&D in India’s premier educational institutions.
    • All the Centrally Funded Higher Educational Institutions will be eligible to join as members of the HEFA.
    • For joining as members, the educational institution must agree to escrow a specific amount from their internal accruals for a period of 10 years to the HEFA.

    Funding pattern of HEFA

    • HEFA will have an authorized capital of 2,000 crore rupees and the government equity would be 1,000 crore
    • It also mobilizes CSR funds from Corporates/PSUs which will, in turn, be released for promoting research and innovation in these institutions on a grant basis.
    • The principal portion of the loan will be repaid through the ‘internal accruals’ of the institutions earned through the fee receipts, research earnings etc.

  • NPA issue in India:Complete analysis

    The Financial Stability Report (FSR) released by RBI recently has once again underlined the vulnerability of the Indian public sector banks (PSBs). They have been under a severe balance sheet crisis even before the pandemic, and the crisis created by the pandemic, and the moratorium offered, will explode when the chickens come to roost.

    Current banking scenario in India

    According to the FSR

    • The gross non-performing assets would go up from 11.3% in March 2020 to 15.2% in March 2021, and to 16.3% under a very severe stress scenario. 
    • The CRAR is estimated to deteriorate from 14.6% in March to 13.3% in the baseline scenario, and to 11.8% under a very severe stress scenario. 
    • The volume of recapitalisation required is humongous.

    What is a Non-Performing Asset (NPA)?

    • You may note that for a bank, the loans given by the bank is considered as its assets. So if the principle or the interest or both the components of a loan is not being serviced to the lender (bank), then it would be considered as a Non-Performing Asset (NPA).
    • Any asset which stops giving returns to its investors for a specified period of time is known as Non-Performing Asset (NPA).
    • Generally, that specified period of time is 90 days in most of the countries and across the various lending institutions. However, it is not a thumb rule and it may vary with the terms and conditions agreed upon by the financial institution and the borrower.

    Reasons for rise in NPA in India

    • Historical factors -Between early 2000’s and 2008 Indian economy were in the boom phase. During this period Banks especially Public sector banks lent extensively to corporate. However, the profits of most of the corporate dwindled due to slowdown in the global economy, the ban in mining projects, and delay in environmental related permits affecting power, iron and steel sector, volatility in prices of raw material and the shortage in availability of. This has affected their ability to pay back loans and is the most important reason behind increase in NPA of public sector banks.
    • Relaxed lending norms : One of the main reasons of rising NPA is the relaxed lending norms especially for corporate honchos when their financial status and credit rating is not analyzed properly. Also, to face competition banks are hugely selling unsecured loans which attributes to the level of NPAs.
    • Lack of contigency planning: Banks did not conducted adequate contingency planning, especially for mitigating project risk. They did not factor eventualities like failure of gas projects to ensure supply of gas or failure of land acquisition process for highways.
    • Restructuring of loan facility was extended to companies that were facing larger problems of over-leverage& inadequate profitability. This problem was more in the Public sector banks.
    • Unforseen economic shocks like Demonetization and Covid 19

    What is the impact of NPAs?

    • Lenders suffer a lowering of profit margins.
    • Stress in banking sector causes less money available to fund other projects, therefore, negative impact on the larger national economy.
    • Higher interest rates by the banks to maintain the profit margin.
    • Redirecting funds from the good projects to the bad ones.
    • As investments got stuck, it may result in it may result in unemployment.
    • In the case of public sector banks, the bad health of banks means a bad return for a shareholder which means that the government of India gets less money as a dividend. Therefore it may impact easy deployment of money for social and infrastructure development and results in social and political cost.
    • Investors do not get rightful returns.
    • Balance sheet syndrome of Indian characteristics that is both the banks and the corporate sector have stressed balance sheet and causes halting of the investment-led development process.
    • NPAs related cases add more pressure to already pending cases with the judiciary.

    What are the various steps taken to tackle NPAs?

    1.Corporate Debt Restructuring – 2005

    It is for reducing the burden of the debts on the company by decreasing the rates paid and increasing the time the company has to pay the obligation back.

    2.5:25 rule – 2014

    • Also known as, Flexible Structuring of Long Term Project Loans to Infrastructure and Core Industries.
    • It was proposed to maintain the cash flow of such companies since the project timeline is long and they do not get the money back into their books for a long time, therefore, the requirement of loans at every 5-7 years and thus refinancing for long term projects.

    3.Joint Lenders Forum – 2014

    • It was created by the inclusion of all PSBs whose loans have become stressed. It is present so as to avoid loans to the same individual or company from different banks.
    • It is formulated to prevent instances where one person takes a loan from one bank to give a loan of the other bank.

    4.Mission Indradhanush – 2015

    The Indradhanush framework for transforming the PSBs represents the most comprehensive reform effort undertaken since banking nationalization in the year 1970 to revamp the Public Sector Banks (PSBs) and improve their overall performance by ABCDEFG.

    • A-Appointments: Based upon global best practices and as per the guidelines in the companies act, separate post of Chairman and Managing Director and the CEO will get the designation of MD & CEO and there would be another person who would be appointed as non-Executive Chairman of PSBs.
    • B-Bank Board Bureau: The BBB will be a body of eminent professionals and officials, which will replace the Appointments Board for the appointment of Whole-time Directors as well as non-Executive Chairman of PSBs
    • C-Capitalization: As per finance ministry, the capital requirement of extra capital for the next four years up to FY 2019 is likely to be about Rs.1,80,000 crore out of which 70000 crores will be provided by the GOI and the rest PSBs will have to raise from the market.
    Financial Year Total Amount
    FY15-16 25,000 Crore
    FY16-17 25,000 Crore
    FY17-18 10,000 Crore
    FY18-19 10,000 Crore
    Total 70,000 Crore
    • D-DEstressing: PSBs and strengthening risk control measures and NPAs disclosure.
    • E-Employment: GOI has said there will be no interference from Government and Banks are encouraged to take independent decisions keeping in mind the commercial the organizational interests.
    • F-Framework of Accountability: New KPI(key performance indicators) which would be linked with performance and also the consideration of ESOPs for top management PSBs.
    • G-Governance Reforms: For Example, Gyan Sangam, a conclave of PSBs and financial institutions. Bank board Bureau for transparent and meritorious appointments in PSBs.

    5.Strategic debt restructuring (SDR) – 2015

    • Under this scheme banks who have given loans to a corporate borrower gets the right to convert the complete or part of their loans into equity shares in the loan taken company. Its basic purpose is to ensure that more stake of promoters in reviving stressed accounts and providing banks with enhanced capabilities for initiating a change of ownership in appropriate cases.

    6.Asset Quality Review – 2015

    • Classify stressed assets and provision for them so as to secure the future of the banks and further early identification of the assets and prevent them from becoming stressed by appropriate action.

    7.Sustainable structuring of stressed assets (S4A) – 2016

    • It has been formulated as an optional framework for the resolution of largely stressed accounts. 
    • It involves the determination of sustainable debt level for a stressed borrower and bifurcation of the outstanding debt into sustainable debt and equity/quasi-equity instruments which are expected to provide upside to the lenders when the borrower turns around.

    8.Insolvency and Bankruptcy code Act-2016

    • It has been formulated to tackle the Chakravyuha Challenge (Economic Survey) of the exit problem in India.
    • The aim of this law is to promote entrepreneurship, availability of credit, and balance the interests of all stakeholders by consolidating and amending the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner and for maximization of value of assets of such persons and matters connected therewith or incidental thereto.

    9.Pubic ARC vs. Private ARC – 2017

    • This debate is recently in the news which is about the idea of a Public Asset Reconstruction Companies (ARC) fully funded and administered by the government as mooted by this year’s Economic Survey Vs. the private ARC as advocated by the deputy governor of RBI Mr. Viral Acharya.
    • Economic survey calls it as PARA (Public Asset Rehabilitation Agency) and the recommendation is based on a similar agency being used during the East Asian crisis of 1997 which was a success.

    10.Bad Banks – 2017

    • Economic survey 16-17, also talks about the formation of a bad bank which will take all the stressed loans and it will tackle it according to flexible rules and mechanism. It will ease the balance sheet of PSBs giving them the space to fund new projects and continue the funding of development projects.

    11.Prompt corrective action

    • PCA is a framework under which banks with weak financial metrics are put under watch by the RBI.
    • The RBI introduced the PCA framework in 2002 as a structured early-intervention mechanism for banks that become undercapitalised due to poor asset quality, or vulnerable due to loss of profitability.
    • It aims to check the problem of Non-Performing Assets (NPAs) in the Indian banking sector.

    12.RBI’s revised stressed asset resolution norms

    • The RBI in June 2019 released a revised set of norms on stressed asset resolution which are substantially less stringent from the previous one.

    About the February 2018 RBI circular

    • Through a notification issued on Feb 12, 2018 the RBI laid down a revised framework for the resolution of stressed assets, which replaced all its earlier instructions on the subject.
    • Banks were required to immediately start working on a resolution plan for accounts over Rs 2,000 crore, which was to be finalised within 180 days.
    • In the case of non-implementation, lenders were required to file an insolvency application.
    • RBI termed it necessary to substitute the existing guidelines with a harmonized and simplified generic framework for resolution of stressed assets.
    • Also, banks have to recognise loans as non-performing even if the repayment was delayed by just one day.
    • Not adhering to the timelines in the circular would attract stringent supervisory and enforcement actions.

    What did the revised framework replace?

    • The circular went into effect on the same day that it was issued, and all existing schemes for stressed asset resolution were withdrawn with immediate effect.
    • The circular was ostensibly intended to stop the “evergreening” of bad loans the practice of banks providing fresh loans to enable timely repayment by borrowers on existing loans.
    • The RBI warned banks that not adhering to the timelines laid down in the circular, or attempting to evergreen stressed accounts, would attract stringent supervisory and enforcement actions.

    New circular of the RBI

    • The new framework gives lenders a breather from the one-day default rule whereby they had to draw up a resolution plan (RP) for implementation within 180 days of the first default.
    • It gives lenders (scheduled commercial banks, all-India financial institutions and small finance banks) 30 days to review the borrower account on default.
    • During this review period, lenders may decide on the resolution strategy, including the nature of the RP and the approach for its implementation.
    • Lenders may also choose to initiate legal proceedings for insolvency or recovery.
    • The new circular is also applicable to small finance banks and systemically important non-deposit taking non-banking financial companies (NBFCs) and deposit-taking NBFCs.
    • In cases where the RP is to be implemented, all lenders have to enter into an intercreditor agreement (ICA)for the resolution of stressed assets during the review period to provide for ground rules for finalisation and implementation of the RP in respect of borrowers with credit facilities from more than one lender.
    • Under the ICA, any decision agreed to by the lenders representing 75 per cent of total outstanding credit facilities by value and 60 per cent by number will be binding upon all the lenders. In particular, the RPs will provide for payment which will not be less than the liquidation value due to the dissenting lenders.
    • In cases where the aggregate exposure of a borrower to lenders (scheduled commercial banks, all-India financial institutions and small finance banks) is ₹2,000 crore and above, the RP has to be implemented within 180 days from the end of the review period, and the reference date has been set as June 7, 2019.
    • In the case of borrowers in the ₹1,500 crore and above but less than ₹2,000 crore category, January 1, 2020 has been set as the reference date for implementing the RP. In the less than ₹1,500 crore category, the RBI will announce the reference date in due course.

     What if the Resolution Plan is delayed?

    • There is a disincentive for banks if they delay implementing a viable resolution plan.
    • In case the plan is not implemented within 180 days from the end of the review period, banks have to make additional provision of 20% and another 15% if the plan is not implemented within 365 days from the start of the review period.
    • The additional provisions would be reversed if resolution is pursued under Insolvency and Bankruptcy Code (IBC).

    Further reforms needed

    • Banks have to accept losses on loans (or ‘haircuts’).
    • They should be able to do so without any fear of harassment by the investigative agencies.
    • The Indian Banks’ Association has set up a six-member panel to oversee resolution plans of lead lenders. To expedite resolution, more such panels may be required.
    • An alternative is to set up a Loan Resolution Authority, if necessary through an Act of Parliament.
    • Also, the government must infuse at one go whatever additional capital is needed to recapitalise banks — providing such capital in multiple instalments is not helpful
    • The quality of lending by PSB must be improved in future so that the same problem does not arise again.
    • To provide Public sector banks with greater autonomy the shareholding of the government can be reduced to less than 50 percent or 33 percent.
    • A second requirement is that public sector banks should become board-managed institutions, with the board responsible for all appointments, including that of the chief executive officer (CEO). If the shares of the government are actually transferred to a holding company, then decisions regarding appointments could be taken by the board of the new company on the recommendation of the board of the bank.
    • The objective of creating a genuinely commercial environment in which public sector banks can function and managements are made accountable can only be achieved if the government is willing to step back from exercising direct control. 

  • In news: Mahatma Gandhi National Rural Employment Guarantee Scheme

    • One-third of the way through the financial year, government data shows that the MGNREGA scheme has used up almost half its allocated funds.
    • Its spending has been more than ₹48,500 crores out of the expanded ₹1 lakh crore allocations announced following the COVID-19 outbreak.

    Try this question for mains:

    Q.Discuss how the MGNREG Scheme has been providing a minimum basic income since the Covid pandemic. Also discuss how it can prove to be a game-changer if coupled with Direct Benefit Transfer (DBT).

    About MGNREGA

    • The MGNREGA stands for Mahatma Gandhi National Rural Employment Guarantee Act of 2005.
    • This is labour law and social security measure that aims to guarantee the ‘Right to Work’.
    • The act was first proposed in 1991 by P.V. Narasimha Rao.

    Its objectives

    • To enhance the livelihood security of the rural poor by generating wage employment opportunities.
    • To create a rural asset base which would enhance productive ways of employment, augment and sustain a rural household income.

    Features of the Scheme

    • MGNREGA is unique in not only ensuring at least 100 days of employment to the willing unskilled workers, but also in ensuring an enforceable commitment on the implementing machinery i.e., the State Governments, and providing a bargaining power to the labourers.
    • The failure of provision for employment within 15 days of the receipt of job application from a prospective household will result in the payment of unemployment allowance to the job seekers.
    • Employment is to be provided within 5 km of an applicant’s residence, and minimum wages are to be paid.
    • Thus, employment under MGNREGA is a legal entitlement.

    Also read:

    [Burning Issue] Reorienting MGNREGA in times of COVID

  • What are Time Capsules?

    Ahead of the laying of the foundation stone for a temple, claims and denials have emerged about plans to put in a time capsule, or ‘Kaal Patra’.

    Do you know?

    A rubidium standard or rubidium atomic clock is the most inexpensive, compact, and widely produced atomic clock, used to control the frequency of television stations, cell phone base stations, in test equipment, and global navigation satellite systems like GPS.

    What is a Time Capsule?

    • It is a container of any size or shape, which accommodates documents, photos and artefacts typical of the current era and is buried underground, for future generations to unearth.
    • The time capsule requires special engineering so that the contents don’t decay, even if pulled out after a century.
    • Material such as aluminium and stainless steel are used for the encasing, and documents are often reproduced on acid-free paper.
    • While the term “time capsule” was coined in the 20th century, among the earliest examples of one dates back to 1777, found by historians inside the statue of Jesus Christ in Spain during its restoration.

    There’s a global society:

    International Time Capsule Society

    • The International Time Capsule Society (ITCS), based in the US and formed in 1990, is now defunct but continues estimating the number of time capsules in the world.
    • As per its database, there are “10,000-15,000 times capsules worldwide”.

    Are there any time capsules in India?

    • There have been a number of prominent examples.
    • One time capsule, outside the Red Fort and placed underground in 1972 by then PM Indira Gandhi, was dug out by the subsequent government.
    • Other time capsules are at a school in Mumbai, IIT-Kanpur, LPU in Jalandhar, and Mahatma Mandir in Gandhinagar.
    • The Red Fort time capsule was supposed to be dug out after 1,000 years.

    Significance of time capsules

    • Historians often criticize the idea of being motivated.
    • This exercise is inevitably a subjective exercise, geared towards glorification not to construct the real picture.
    • All historians look at this time capsule exercise with suspicion.
    • It’s not a valid historical method — who decides what matter, what artefacts, written documents are going into it?

  • [pib] National Transit Pass System (NTPS)

    Environment Minister has launched piloting of the National Transit Pass System for seamless movement of forest produce.

    Try this MCQ:

    Q.The National Transit Pass System (NTPS) recently seen in news is related to:

    (a) Transport of Forest Produces

    (b) Transport through National Waterways

    (c) Inter-state transport during restrictions

    (d) None of these

    About National Transit Pass System

    • The NTPS is an online system for issuing transit permits for timber, bamboo and other forest produce.
    • This system helps in monitoring and keeping records of transit permits for inter-state and intra-state transportation of timber and bamboo from private lands/government/private depot and other minor forest produce.
    • E-pass will be issued for transit through the desktop-based web portal as well as a mobile application.
    • It will bring ease of business and expedite the issuance of transit permits for timber, bamboo and other minor forest produce without physically going to forest offices.
    • It will be functional in Madhya Pradesh and Telangana for now on a pilot basis.