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GS Paper: GS3

  • RBI revises rules for investment in Alternative Investment Funds (AIFs)

    Why in the News?

    The RBI has released revised draft guidelines for investments made by Regulated Entities (REs) in Alternative Investment Funds (AIFs) to ensure better regulatory oversight, prevent misuse of funds, and align with the rules already set by SEBI.

    What are Alternative Investment Funds (AIFs)?

    • Definition: They are unique investment vehicles that are privately pooled and invested in alternative asset classes such as venture capital, private equity, hedge funds, commodities, real estate, and derivatives.
    • Regulation: They are governed by SEBI under the SEBI (Alternative Investment Funds) Regulations, 2012.
    • Working: It can be formed as a trust, company, Limited Liability Partnership (LLP), or any other SEBI-permitted structure.
    • Legal Structure: They can be set up as trusts, companies, Limited Liability Partnership (LLP), or other legally permitted forms.
    • Investor Base:
      • AIFs are meant for High Net-Worth Individuals (HNIs) and institutional investors, NOT small retail investors.
      • Resident Indians, NRIs, and foreign nationals can invest.
    • Minimum Investment Requirement:
      • The minimum investment size is ₹1 crore (SEBI, May 2024), except for accredited investors as defined by SEBI.
      • For employees or directors of the AIF or its manager, the minimum investment is ₹25 lakh.
      • An AIF must have a minimum corpus of ₹20 crore (₹10 crore for Angel Funds).

    Types of AIFs: 

    1. Category I: These funds invest in early-stage unlisted companies in the form of equity or debt (venture capital). These alternative asset funds can also invest in infrastructure-based projects or social ventures.
    2. Category II: These types of funds invest in equity or debt of unlisted companies that are in the mid or late stage of growth and are known as private equity or pre-IPO, respectively.
    3. Category III: This category of funds invests in the shares of listed companies. These alternative strategy funds can be for any period, long only or a combination of long and short.
    [UPSC 2014] What does Venture Capital mean?

    Options: (a) A short-term capital provided to industries. (b) A long-term start-up capital provided to new entrepreneurs* (c) Funds provided to industries at times of incurring losses. (d) Funds provided for replacement and renovation of industries.

     

  • Potato Cultivation in India

    Why in the News?

    India is likely to become the world’s largest potato producer, overtaking China, by 2050, according to experts from the International Potato Center (CIP) based in Peru.

    Back2Basics: International Potato Center (CIP)

    • The CIP is a research-for-development organisation founded in 1971, focused on improving potato, sweet potato, and Andean root and tuber crops.
    • Headquartered in Lima, Peru, CIP operates in over 20 countries across Africa, Asia, and Latin America.
    • It maintains the world’s largest Potato Gene Bank, safeguarding biodiversity for future use in research and breeding.

    Potato Cultivation in India:

    • About: Potato (Solanum tuberosum) is known as the “King of Vegetables” and is India’s fourth most important food crop after rice, wheat, and maize.
    • Origin: Introduced to India by Portuguese traders in the 17th century.
    • Geographic Spread: Grown in 23 states, but 85% of production comes from the Indo-Gangetic plains in North India.
    • Top Producing States:
      • Uttar Pradesh: ~30% of total output
      • West Bengal: ~23.5%
      • Bihar: ~17%
      • Other contributors: Punjab, Gujarat, Madhya Pradesh
    • Climate Needs: Potato is a cool-season crop.
      • Ideal growth temp: 24°C
      • Ideal tuber formation temp: 20°C
    • Soil Requirements: Prefers well-drained, fertile soils with moisture retention.
    • Planting Seasons:
      • Himachal Pradesh, Uttarakhand: Spring (Jan–Feb), Summer (May)
      • Punjab, Haryana, UP, Bihar, Bengal: Main crop in October
      • MP, Maharashtra, Karnataka: Both kharif and rabi seasons
    • Seed Management: Use disease-free, sprouted seeds (30–50g);
    • Popular varieties: Kufri Jyoti, Kufri Bahar, Kufri Pukhraj, and Kufri Chandramukhi.
    • Fertilization & Irrigation: Apply balanced nutrients, especially phosphorus and potassium; drip irrigation is recommended.
    • Harvesting: Ready in 90–120 days, harvested manually or mechanically.

    Global Comparison and Future Outlook:

    • Global Rank: India is the second-largest producer after China.
    • Production Volume: Over 50 million tonnes/year currently; projected to reach 100 million tonnes by 2050 (CIP experts).
    • Growth Drivers: Expansion is due to large cultivation area, strong domestic demand, and government support.
    • Tuber Crop Potential: Promoting crops like sweet potato can improve nutrition, livelihoods, and climate resilience.

    Policy measure for Potato Farmers: Operation Greens

    • It is a scheme launched by the GoI in 2018, modelled after Operation Flood, with the aim to stabilize the supply and prices of Tomato, Onion, and Potato (TOP) crops.
    • The scheme is implemented by the Ministry of Food Processing Industries (MoFPI) and was initially allocated a budget of ₹500 crore.
    • Objectives:
      • Stabilize the supply and prices of potatoes (along with tomato and onion) to protect both farmers and consumers from extreme price fluctuations.
      • Reduce post-harvest losses of potatoes by improving storage, processing, and logistics infrastructure

     

    [UPSC 2014] In India, cluster bean (Guar) is traditionally used as a vegetable or animal feed, but recently the cultivation of this has assumed significance.

    Which one of the following statements is correct in this context?

    Options: (a) The oil extracted from seeds is used in the manufacture of biodegradable plastics. (b) The gum made from its seeds is used in the extraction of shale gas.* (c) The leaf extract of this plant has the properties of antihistamines. (d) It is a source of high quality biodiesel.

     

  • [pib] What is Operation Olivia?

    Why in the News?

    As of February 2025, the Indian Coast Guard (ICG) protected a record 6.98 lakh Olive Ridley turtles during their mass nesting at the Rushikulya river mouth in Odisha.

    About Operation Olivia:

    • Launch: Operation Olivia is an annual conservation mission by the Indian Coast Guard, started in the early 1980s.
    • Main Objective: It aims to protect Olive Ridley turtles during their nesting season, from November to May.
    • Primary Locations: The operation focuses on Odisha’s coast, especially Gahirmatha Beach, Devi River mouth, and Rushikulya River mouth.
    • Turtle Nesting Scale: Over 8 lakh turtles arrive annually at these sites to nest.
    • Surveillance Efforts: The Coast Guard has conducted more than 5,387 surface patrols and 1,768 aerial missions.
    • Community Engagement: Fishermen are encouraged to use Turtle Excluder Devices (TEDs) that allow turtles to escape fishing nets.

    About Olive Ridley Turtles:

    • Appearance: Named for their olive-green shell, or carapace.
    • Diet: They are Omnivores, though feeding mainly on jellyfish, crustaceans, and molluscs.
    • Nesting Behaviour: Known for Arribada, a phenomenon where thousands of females come ashore simultaneously to lay eggs.
    • Habitat Range: Found in warm waters of the Pacific, Atlantic, and Indian Oceans.
    • Major Nesting Sites in India:
      • Gahirmatha Marine Sanctuary, Odisha (largest site)
      • Devi River mouth (discovered in 1981)
      • Rushikulya River mouth (discovered in 1994)
    • Protection Status:
      • IUCN Red List: Listed as Vulnerable.
      • CITES: Included in Appendix I, banning international trade.
      • Wildlife Protection Act, 1972: Listed under Schedule I, offering the highest legal protection in India.
    [UPSC 2002] The sea coast of which one of the following states has become famous as a nesting place for the giant Olive Ridley turtles from South America?

    Options: (a) Goa (b) Gujarat (c) Odisha* (d) Tamil Nadu

     

  • NASA’s GRAIL Mission

    Why in the News?

    Scientists now believe the Moon’s near side looks different from its far side due to its internal structure and volcanic past, revealed by NASA’s Gravity Recovery and Interior Laboratory (GRAIL) mission.

    About the GRAIL Mission:

    • Launch: NASA launched the GRAIL mission in 2011 to study the moon’s internal structure.
    • Spacecraft Used: It used two spacecraft, Ebb and Flow, flying in tandem to detect gravity variations.
    • Objectives: The mission measured tiny changes in distance between the two spacecraft caused by differences in the moon’s gravitational field.
    • Scientific Outcome: The data revealed important details about the moon’s crust thickness, interior composition, and subsurface features.

    Key Findings: Reasons for the Moon’s Asymmetry

    • Tidal Deformation: The nearside bends more than the farside due to Earth’s gravity, a process called tidal deformation.
    • Internal Activity: The nearside is geologically warmer and more active, suggesting internal structural differences.
    • Volcanic History: Ancient volcanic activity on the nearside formed large basaltic plains, while the farside remained rugged and less active.
    • Heat Distribution: Elements like thorium and titanium accumulated on the nearside, making it 100–200°C hotter than the farside.
    • Crust Thickness: The nearside has a thinner crust, allowing magma to escape, while the farside’s thicker crust trapped heat and blocked eruptions.
    • Thermal Contrast: The thinner crust also allowed more heat-producing elements to concentrate, increasing the temperature gap between the two sides.

    Why do these findings matter?

    • Support for Lunar Missions: Insights from GRAIL help design better navigation and timing systems for future lunar operations.
    • Applications: GRAIL’s method can be applied to other moons like Enceladus and Ganymede, which may hold potential for life.
    [UPSC 2007] NASA’S Deep Impact space mission was employed to take detailed pictures of which comet nucleus?

    Options: (a)  Halley’s Comet (b) Hale-Bopp (c) Hyakutake (d) Tempel 1 *

     

  • Mahadayi Water Dispute

    Why in the News?

    A protest has erupted in Goa after a scientific paper on water availability and diversion in the Mahadayi basin reignited its long-standing dispute with Karnataka.

    Mahadayi Water Dispute

    About the Mahadayi River:

    • Origin: The Mahadayi River (Mhadei in Goa) originates in Bhimgad, Karnataka, in the Western Ghats.
    • Length and Flow: It flows 81 km, passing through Karnataka (35 km), Goa (45 km), and Maharashtra (1 km) before reaching the Arabian Sea.
    • Basin Area: Covers 2,032 sq km—78% in Goa, 18% in Karnataka, and 4% in Maharashtra.
    • Significance: Forms the Mandovi River, essential for drinking water, agriculture, and navigation in Goa.
    • Tributaries: Kalasa Nala, Surla Nala, Haltar Nala, Poti Nala, Mahadayi Nala, Pansheer Nala, Bail Nala, Andher Nala and many more. It has a catchment area of 2032 sq.km.
    • Topography: Elevation ranges between < 0m and > 980m w.r.t Mean Sea Level, slope of the catchment varies up to 150%. Very high slope we observed in the Ghats (Braganja Ghats).
    • Waterfalls: Variations in the terrain has led to formation of various water falls such as the Doodhsagar falls,Vajra poha falls etc.
    • Ecology: Supports rich biodiversity, including the Salim Ali Bird Sanctuary.
    • Mineral Ores found: Iron, limestone, bauxite, quartz, limestone, sand, clay, lime shell, Manganese, Asbestos, Mica, Lead, Cadmium.

    Mahadayi Water Dispute:

    • Karnataka’s Project: Proposed the Kalasa-Banduri Nala to divert water to the Malaprabha basin.
    • Tribunal Setup: The Mahadayi Water Disputes Tribunal (2010) addressed disagreements.
    • 2018 Verdict:
      • Karnataka: 13.42 tmcft (1.72 from Kalasa, 2.18 from Bhandura).
      • Goa: 24 tmcft (plus 9.395 tmcft for existing use).
      • Maharashtra: 1.33 tmcft.
    • Concerns: Goa feared impacts on Mandovi navigation; the tribunal cited tidal flow ensures stability.
    • Legal Status: Both states have challenged the verdict in the Supreme Court.

    Controversy Over CSIR-NIO Report:

    • Study Findings: Claimed Karnataka’s diversions would have minimal impact on Goa’s water or estuarine navigation.
    • Institutions: Report authored by CSIR-NIO (Goa) and INCOIS (Hyderabad).
    • Recommendations: Suggested check dams and a Tillari-style agreement for shared water use and ecological balance.

    Tap to read more about Interstate Water Disputes in India.

    [UPSC 2013] Constitutional mechanisms to resolve the inter-state water disputes have failed to address and solve the problems. Is the failure due to structural or process inadequacy or both? Discuss.

     

  • What is A-to-I mRNA Editing?

    Why in the News?

    Chinese researchers found that A-to-I mRNA editing, once considered random, plays a key role in development, especially in the wheat pathogen Fusarium graminearum.

    About A-to-I mRNA Editing:

    • mRNA: Our cells use DNA as a guide to make proteins. First, they copy DNA into messenger RNA (mRNA).
    • A-to-I editing: This is a process where the letter adenosine (A) in mRNA is changed to inosine (I) by special enzymes called ADARs. The cell reads inosine as guanine (G), which can change the protein being made.
    • Why it matters:
      • It helps the cell make different versions of proteins without changing the DNA.
      • It can remove early stop signals, allowing full proteins to be made.
      • It helps the cell adapt to different conditions or stages of life.

    What did scientists discover in the fungus?

    • Fungal Discovery: Scientists found that the fungus edits over 26,000 mRNA sites during reproduction, not during normal growth.
    • Development Role: This editing fixes early stop signals in key genes, helping the fungus develop and reproduce properly.
    • Stress Adaptation: Some genes work better unedited under stress, showing the fungus edits only when needed for survival.

    Does this happen in humans?

    Yes, A-to-I editing is common in humans:

    • In the brain: It helps with brain growth, memory, and learning.
    • In the immune system: It helps fight infections and control inflammation.

    Health Implications:

    • Health Risks: Faulty editing is linked to epilepsy and certain cancers.
    • Therapeutic Potential: Understanding this process can lead to new treatments and improve gene-editing technologies.
    [UPSC 2016] In the context of the developments in Bioinformatics, the term ‘transcriptome’, sometimes seen in the news, refers to:

    Options: (a) a range of enzymes used in genome editing (b) the full range of mRNA molecules expressed by an organism * (c) the description of the mechanism of gene expression (d) a mechanism of genetic mutations taking place in cells

     

  • RBI’s Transfer of ‘Surplus’ to the Government

    Why in the News?

    The RBI may transfer a record ₹2.5–₹3 lakh crore surplus for 2024–25 after its recent review of its Economic Capital Framework (ECF).

    About Surplus Transfer by RBI:

    • Legal Basis: Under Section 47 of the RBI Act, 1934, the RBI must transfer its net surplus from its income to the central government.
    • Tax Exemption: As per Section 48, the RBI is exempt from income tax and direct taxes.
    • Timeline: RBI has recently changed its accounting year from June-July to April-May.
    • Recent Transfers: In 2023–24, RBI transferred a record ₹2.11 lakh crore; estimates for 2024–25 range between ₹2.5 and 3 lakh crore.
    • Reserve Allocation: Some surplus may be set aside for contingency or asset development funds.
    • Policy Debate: The government often seeks higher transfers, while the RBI stresses on maintaining financial stability and autonomy.
    • Past Disagreements: Tensions have occurred but are usually resolved through mutual agreement.

    How does the RBI generate its surplus?

    • Foreign Investments: RBI earns returns from investing in foreign government bonds, treasury bills, and deposits with other central banks.
    • Domestic Bonds: It receives interest on Indian government securities (G-secs) held in its portfolio.
    • Bank Lending: Income is earned by lending short-term funds to commercial banks via repo operations.
    • Commission Services: The RBI charges commissions for managing borrowings and public debt for the central and state governments.
    • Main Expenditure: Costs include printing currency, staff salaries and pensions, bank commissions, and dealer fees.
    • Net Surplus: The surplus is what remains after expenses, provisions, and reserves are accounted for.

    Back2Basics: Economic Capital Framework (ECF)

    • Purpose: The ECF guides how much capital RBI must retain and how much surplus can be transferred.
    • Y.H. Malegam Committee (2013): It reviewed the adequacy of reserves and surplus distribution policy in 2013, recommended a higher transfer to the government.
    • Introduction: Finalised in 2019, based on a committee led by Bimal Jalan.
    • Goal: Seeks to balance government funding needs with RBI’s financial resilience.
    • Reserve Components: Defines key buffers like the Contingency Risk Buffer (CRB), Revaluation Reserves, and Asset Development Fund.
    • Minimum CRB: Requires at least 5.5% of RBI’s balance sheet to be held as contingency reserve.
    • Transfer Stability: Allows for more consistent surplus transfers when RBI’s earnings are strong.

     

    [UPSC 2021] In India, the central bank’s function as the ‘lender of last resort’ usually refers to which of the following:

    1.Lending to trade and industry bodies when they fail to borrow from other sources.

    2.Providing liquidity to the banks having a temporary crisis.

    3.Lending to governments to finance budgetary deficits.

    Select the correct answer using the code given below:

    Options: (a) 1 and 2 (b)  2 only * (c) 2 and 3 (d) 3 only

     

  • 125 Years of Kodaikanal Solar Observatory (KoSO) 

    Why in the News?

    The Department of Posts has released a commemorative postage stamp to mark 125 years of the Kodaikanal Solar Observatory (KoSO)—one of India’s oldest and most significant astronomical research centres dedicated to studying the Sun.

    About the Kodaikanal Solar Observatory (KoSO):

    • Founding: Established in the late 19th century, KoSO was established in 1899 after atmospheric surveys by Charles Michie Smith.
    • Location: It is located in Kodaikanal, Tamil Nadu, in the Palani Hills, chosen for its excellent sky conditions.
    • Early Observations: Initially focused on observing sunspots, solar prominences, and solar radiation.
    • Modern Equipment: Now equipped with the H-alpha telescope (for flares and prominences) and WARM (for high-resolution sunspot imaging).
    • Institutional Role: Became part of the Indian Institute of Astrophysics (IIA) in April 1971.
    • Scientific Importance: KoSO contributes to understanding the Sun’s effect on Earth’s climate and space weather.

    Important Observations / Discoveries:

    • Evershed Effect (1909): Discovered by John Evershed, it was the first observation of radial gas outflows in sunspots, a key finding in solar physics.
    • Historic Solar Archive (1904–2017): Created one of the world’s longest continuous solar datasets.
    • Digitization: First Indian observatory to digitise solar data (since 1984); currently maintains a digital archive of 1.48 lakh images (~10 TB).
    • Wider Scientific Work: Extended research into cosmic rays, radio astronomy, ionospheric physics, and stellar astrophysics over the decades.
    [UPSC 2016] Discuss India’s achievements in the field of Space Science and Technology. How the application of this technology has helped India in its socio-economic development?

     

  • India assembles First Chromosome-Level Genome of the Yak

    Why in the News?

    Specialists from the Indian Council of Agricultural Research (ICAR) have successfully assembled the first-ever chromosome-level genome of the Indian yak (Bos grunniens).

    India assembles First Chromosome-Level Genome of the Yak

    About the Indian Yak (Bos grunniens):

    • The Indian yak, often referred to as the ‘ship of the Himalayas’, plays a crucial role in the high-altitude economies of India.
    • Features: It is known for its resilience and adaptability to extreme environments. It provides meat, milk, and manure and is a vital mode of transportation.
    • Habitat: It inhabits the regions above 7,000 feet in Ladakh, Sikkim, Arunachal Pradesh, and Himachal Pradesh.
    • Conservation Status: It is assessed as Vulnerable under the IUCN Red List and included in CITES Appendix I and Schedule I in the Indian Wildlife (Protection) Act, 1972.

    Significance of the Research:

    • Mapping Method: The study used long-read sequencing and advanced bioinformatics to map yak genes with high precision.
    • Feature Identification: The genome will help identify genes for cold tolerance, disease resistance, and milk production.
    • Comparative Applications: It will allow comparative studies with other bovine species to discover valuable genetic traits (alleles).
    • Breeding and Conservation: The data will support better breeding strategies and the creation of conservation plans for yaks.
    • Livelihood Impact: This research supports sustainable development and could improve the livelihoods of Himalayan yak herders through targeted livestock improvements.
    [UPSC 2017] According to the Wildlife (Protection) Act, 1972, which of the following animals cannot be hunted by any person except under some provisions provided by law?

    1. Gharial 2. Indian wild ass 3. Wild buffalo

    Select the correct answer using the code given below:

    Options: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3*

     

  • Scientists create 2D Metal Sheets using High-Pressure Technique

    Why in the News?

    A team of researchers from top Chinese scientific institutions has reported a major breakthrough in the creation of atomically thin 2D metal sheets using a novel high-pressure sandwich method.

    About the 2D Metal Created:

    • Definition: 2D metals are only one or two atoms thick, so electrons can move in just two dimensions.
    • Quantum Confinement: Electrons in 2D metals are restricted to specific energy levels, similar to how they behave in atoms.
    • Scientific Interest: Metals like bismuth, tin, and lead in 2D form are being studied for their electrical, magnetic, and quantum properties.
    • Applications: Their special properties make them useful for quantum computing, sensors, and advanced electronics.

    Technologies Involved:

    • Quantum Dots: These are tiny semiconductors where electrons are tightly confined, creating quantised energy states.
    • Quantum Confinement: In quantum dots, electrons can’t move freely in any direction, leading to discrete energy levels.
    • Link to 2D Metals: In 2D metals, electrons are confined in two dimensions, changing conductivity, magnetism, and optical behaviour.
    • Process: Chinese scientists created 2D metals by sandwiching metal powder between two MoS₂-coated sapphire layers.
    • Steps involved: The structure is heated, twisted, and pressed to form ultra-thin sheets, then cooled and peeled off.
    • Material Choice: MoS₂ and sapphire were chosen for their strength, smoothness, and low chemical reaction with metal.

    Note: 

    Quantum confinement occurs when a particle like an electron is trapped in an extremely small space, such as a nanoscale material. This restriction changes its energy levels, making them discrete instead of continuous. As a result, the material’s properties—like color and conductivity—can change with size.

     

    [UPSC 2012] Graphene is frequently in the news recently. What is its importance?

    1. It is a two-dimensional material and has good electrical conductivity.

    2. It is one of the thinnest but strongest materials tested so far.

    3. It is entirely made of silicon and has high optical transparency.

    4. It can be used as ‘conducting electrodes’ required for touch screens, LCDs and organic LEDs.

    Options: (a) 1 and 2 only (b) 3 and 4 only (c) 1, 2 and 4 only* (d) 1, 2, 3 and 4