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  • India’s first Global Bullion Exchange unveiled

    Prime Minister has launched India’s first International Bullion Exchange (IIBX) at the Gujarat International Finance Tec-City (GIFT City) near Gandhinagar.

    What is Bullion?

    • Bullion refers to physical gold and silver of high purity that is often kept in the form of bars, ingots, or coins.
    • It can sometimes be considered legal tender and is often held as reserves by central banks or held by institutional investors.

    When was the IIBX announced?

    • During her 2020 budget speech, Finance Minister announced the setting up of India International Bullion Exchange (IIBX) at International Financial Services Center (IFSC) at GIFT City in Gandhinagar.
    • The International Financial Services Centres Authority (Bullion Exchange) Regulations, 2020, was notified in December 2020 for trading of precious metals, including gold and silver.
    • These regulations also cover bullion exchange, clearing corporation, depository and vaults.

    What is the IIBX?

    • India for the first time had liberalised gold imports through nominated banks and agencies in the 1990s.
    • Now, the eligible qualified jewellers in India have been allowed to directly import gold through IIBX.
    • For this, jewellers will have to become a trading partner or a client of an existing trading member.
    • In addition, the exchange has set up necessary infrastructure to store physical gold and silver.
    • The exchange will sell physical gold and silver and aims to be set up on the lines of the Shanghai Gold Exchange and Borsa Istanbul in order to make India a key regional hub for bullion flows.

    How will it work?

    • The thought process behind setting this up is to enable the trading of commodities on an exchange.
    • Since this is international exchange, trading can take place in US dollars as well.
    • India has positioned itself as one of the biggest trading hubs in Asia.
    • Because of the competitive pricing on IIBX, international players will be happy to use our vaulting services.
    • Moreover, with this being a free trade zone, no duty will be paid.

    What was the practice up until now?

    • Currently, gold in India is imported on a consignment model into different cities by nominated banks and agencies approved by the RBI and then supplied to traders/jewellers.
    • The banks and other agencies get a fee from the gold exporter for handling, storage, etc, and also add a premium to the gold while transacting with domestic buyers.
    • The buyer passes this charge on to the value chain until it reaches the end customer.

    What change did IIBX bring?

    • With the IIBX becoming operational today, qualified domestic buyers can, through a branch in Gift City, purchase the bars and coins.
    • This purchase can be done from an international supplier who is a member of the IIBX.

    What is the advantage of an exchange?

    • Through the dis-intermediation by facilitating transactions through an anonymously traded exchange platform, bullion is made available across special economic zones (SEZs) at International Financial Services Centres Authority (IFSCA)-approved vaults.
    • This means the growth of IIBX is not just limited to GIFT City but across jewellery manufacturing hubs nationwide.
    • The qualified jeweller allowed to import gold through IIBX, or a jeweller who is a client of an IIBX member, can view the available stock and place the order.
    • This shall nudge jewellers towards just-in-time inventory management.
    • It will also result in greater transparency in pricing, and order sequencing, thereby removing any room for unfair preference by supplier, importing or logistics agency.

    Which jewellers have come on board?

    • So far, 64 big jewellers have come onboard and more applications are in the pipelines.
    • Some of the big names include Malabar Gold Pvt Ltd, Titan Company Ltd, Bangalore Refinery Pvt Ltd, RBZ Jewellers Pvt Ltd, Zaveri and Company Pvt Ltd.

    What are the new RBI guidelines for importing gold?

    • Banks may now allow qualified Jewellers to remit advance payments for 11 days for import of gold through IIBX in compliance to the extant Foreign Trade Policy and regulations issued under IFSC Act.
    • According to the RBI, all payments by qualified jewellers for imports of gold through IIBX shall be made through the exchange mechanism as approved by IFSCA.

    Who can enrol on the exchange?

    1. Non-Resident Individual / Proprietorship Firm
    2. Registered Partnership Firm
    3. Private Limited Company
    4. Public Limited Company
    5. Qualified Jewellers
    6. Branches of IBU at GIFT City
    7. Foreign Bullion Suppliers who follow OECD guideline
    • In order to become a qualified jeweller, entities require a minimum net worth of Rs 25 crore.
    • And 90 per cent of the average annual turnover in the last three financial years through deals in goods categorised as precious metals.
    • NRIs and institutes will also be eligible to participate in the exchange after registering with the International Financial Services Centre Association (IFSCA).
    • Jewellers will be able to transact on IIBX only as trading members or as clients of a trading member.
    • If one wants to become a trader, a qualified jeweller will have to establish a branch or a subsidiary in IFSC (international financial services centre) and apply to the IFSCA.

    What products does IIBX offer?

    • IIBX offers a diversified portfolio of products and technology services at a cost which is far more competitive than the Indian exchanges as well as other global exchanges in Hong Kong Singapore, Dubai, London and New York.
    • Gold 1 kg 995 purity and gold 100 gm 999 purity with a T+0 settlement (100% upfront margin) are expected to trade at IIBX initially.
    • All contracts will be listed, traded and settled in US Dollar
    • The exchange will have three vaults – one operated by Sequel Global (ready and approved), the second one to be operated by Brinks India is ready and awaiting final approval and the third is under construction.
    • Once the gold is imported by the authorised entities it will be deposited at one of the vaults which will issue bullion depository receipts.
    • These receipts will then be traded in dollars on the exchange.

    Significance of IIBX

    • The IIBX shall be the “Gateway for Bullion Imports into India”, wherein all the bullion imports for domestic consumption shall be channelized through the exchange.
    • The exchange ecosystem is expected to bring all the market participants to a common transparent platform for bullion trading.
    • It would provide efficient price discovery, assurance in the quality of gold, and enable greater integration with other segments of financial markets.

     

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  • Core Sector output expands by 12.7%

    India’s eight core sectors’ output growth moderated to 12.7% in June, from 18.1% in May, with all sectors except crude oil registering an uptick in production.

    What are the Core Industries in India?

    • The main or the key industries constitute the core sectors of an economy.
    • In India, there are eight sectors that are considered the core sectors.
    • They are electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilizers.

    Index of Eight Core Industries (ICI) vs Index of Industrial Production (IIP)

    [A] Index of Eight Core Industries

    • The monthly Index of Eight Core Industries (ICI) is a production volume index.
    • ICI measures collective and individual performance of production in selected eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity.
    • Prior to the 2004-05 series six core industries namely Coal, Cement, Finished Steel, Electricity, Crude petroleum and Refinery products constituted the index basket.
    • Two more industries i.e. Fertilizer and Natural Gas were added to the index basket in 2004-05 series. The ICI series with base 2011-12 will continue to have eight core industries.

    Components covered in these eight industries for the purpose of compilation of index are as follows:

    • Coal – Coal Production excluding Coking coal.
    • Crude Oil – Total Crude Oil Production.
    • Natural Gas – Total Natural Gas Production.
    • Refinery Products – Total Refinery Production (in terms of Crude Throughput).
    • Fertilizer – Urea, Ammonium Sulphate (A/S), Calcium Ammonium Nitrate (CAN), Ammonium chloride (A/C), Diammonium Phosphate (DAP), Complex Grade Fertilizer and Single superphosphate (SSP).
    • Steel – Production of Alloy and Non-Alloy Steel only.
    • Cement – Production of Large Plants and Mini Plants.
    • Electricity – Actual Electricity Generation of Thermal, Nuclear, Hydro, imports from Bhutan.

    [B] Index of Industrial Production

    • The Index of Industrial Production (IIP) is an index for India which details out the growth of various sectors in an economy such as mineral mining, electricity and manufacturing.
    • The all India IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.

    Difference between the two

    • IIP is compiled and published monthly by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation six weeks after the reference month ends.
    • However, ICI is compiled and released by Office of the Economic Adviser (OEA), Department of Industrial Policy & Promotion (DIPP), and Ministry of Commerce & Industry.
    • The Eight Core Industries comprise nearly 40.27% of the weight of items included in the Index of Industrial Production (IIP).
    • These are Electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilisers.

    Importance of Core Industries

    • The core sectors have a major impact on the Indian economy and significantly affect most other industries as well.
    • Their measures help account for the physical volume of production in India.
    • Their analysis offers a clearer and more realistic assessment of what’s happening in the economy
    • Their progress is used by government agencies for policy-making purposes.
    • They remain extremely relevant for the calculation of the quarterly and advanced Gross Domestic Product (GDP) estimates.
    • The core sector is also known as Infrastructure output as they represent the basic industries that form the base of the economy.

    Do you know about the Strategic Sectors?

    The government has identified four strategic sectors where the presence of state-run companies will be reduced to a minimum.

    1. Atomic energy, space and defence
    2. Transport and telecommunications
    3. Power, petroleum, coal and other minerals and
    4. Banking, insurance and financial services

     

    Try this PYQ:

    Q.In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?

    (a) Coal production

    (b) Electricity generation

    (c) Fertilizer production

    (d) Steel production

     

    [wpdiscuz-feedback id=”25p2lmotyo” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • Why the govt plans to scrap the decades-old Coffee Act?

    The Ministry of Commerce and Industry is planning to replace the 80-year-old Coffee Act with the new Coffee (Promotion and Development Bill), 2022, which has been listed for the Monsoon Session of Parliament.

    What is the Coffee Act?

    • The Coffee Act, 1942 was first introduced during World War II, in order to protect the struggling Indian coffee industry from the economic downturn caused by the war.
    • In the 1930s, the Indian coffee industry was facing significant problems, such as large-scale damage by pests and diseases, and the global economic downturn caused by the Great Depression.
    • With coffee planters making significant losses, the government passed the Coffee Cess Act (XIV of 1935) and established the first Indian Cess Committee in November 1935.
    • This aimed to promote the sale of coffee and increase consumption of Indian coffee at home and abroad.
    • These problems from the 1930s were compounded with the outbreak of World War II, as low demands and a loss of foreign markets led to a sharp decline in coffee prices.
    • Since the Cess Committee was not able to deal with the crisis faced by the industry, the government formed the Coffee Board, through the introduction of the Coffee Act, 1942.

    Purpose of the Act

    • The purpose of the Act was to provide for the development of the coffee industry.
    • The Board was tasked with supporting the industry in marketing, promotion of consumption, finance and research and development.

    Why scrap the old law?

    • The government is now trying to scrap the law because it claims that many of the provisions have become redundant and are too restrictive.
    • It has also proposed to repeal the decades old laws on tea, spices and rubber, and introduce new legislations in order to increase the ease of doing business and promote the development of these sectors.
    • These are very old laws and the idea is only to simplify them, make it easier to do business.
    • It aims to ensure that the small people in the different areas like coffee growing, tea growing do not have to suffer from high levels of compliance burden.

    Major contentious factor: Pooling System

    • Before India liberalised its economy in 1991, the Coffee Board controlled the marketing of the commodity in its entirety, both in India and abroad.
    • The Act introduced a pooling system, where each planter was required to distribute their entire crop to a surplus pool managed by the Board, apart from the small quantities that were allowed for domestic use and seed production.
    • The Board marketed 70% of the total pool for export and 30% for domestic markets, and sold them in separate auctions, according to Takamasa Akiyama, an economist affiliated with the World Bank.
    • In order to spur domestic consumption, the price of domestic coffee was kept artificially low.

    The changes since liberalization

    • While the Coffee Board no longer maintains its monopolistic control over the marketing of Indian coffee.
    • Through a series of amendments, the Board’s authority was reduced, and in 1996, the pooling system was abolished and growers were allowed to directly sell to processing firms.
    • The coffee market was entirely deregulated and the growers exposed to the free market.
    • Since liberalization, the Coffee Board plays more of an advisory role, and aims at increasing production, promoting further export and supporting the development of the domestic market.

    What are the proposed changes?

    • In order to facilitate growth and ease of doing business, the government would remove the restrictive and redundant provisions.
    • The centre wants to introduce a simplified version of the Act to suit the present needs of the industry.
    • The government would not close the Coffee Board, but would rather shift it from the Ministry of Commerce to the Ministry of Agriculture.
    • Here it aims to ensure that the benefits of all agricultural schemes are extended to coffee growers.
    • The new legislation is now primarily concerned with promoting the sale and consumption of Indian coffee including through e-commerce platforms, with fewer government restrictions.
    • It also aims at encouraging further economic, scientific and technical research in order to align the Indian coffee industry with “global best practices.”

    Back2Basics: Coffee Production in India

    • India is the third-largest producer and exporter of coffee in Asia and the sixth-largest producer and fifth-largest exporter of coffee in the world.
    • The country accounts for 3.14% (2019-20) of the global coffee production.
    • Coffee production in India is dominated in the hill tracts of South Indian states, with Karnataka accounting for 71%, followed by Kerala with 21% and Tamil Nadu (5%).
    • Indian coffee is said to be the finest coffee grown in the shade rather than in direct sunlight anywhere in the world.
    • Almost 80% of Indian coffee is exported.
    • The two well-known species of coffee grown are the Arabica and Robusta. The first variety was introduced in the Baba Budan Giri hill ranges of Karnataka in the 17th century.
    • Brazil is, the largest coffee producer in the world.

     

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  • Supreme Court orders status quo on Kaleshwaram Project expansion

     

    The Supreme Court has ordered status quo on the Kaleshwaram Lift Irrigation Project (KLIP) after it was told the Telangana government was increasing the capacity of the project without any environmental clearances.

    Kaleshwaram Lift Irrigation Project (KLIP)

    • The KLIP is a multi-purpose irrigation project on the Godavari River in Kaleshwaram, Bhupalpally in Telangana.
    • Currently the world’s largest multi-stage lift irrigation project, its farthest upstream influence is at the confluence of the Pranhita and Godavari rivers.
    • The Pranahita River is itself a confluence of various smaller tributaries including the Wardha, Painganga, and Wainganga rivers which combine to form the seventh-largest drainage basin on the subcontinent.
    • It remains untapped as its course is principally through dense forests and other ecologically sensitive zones such as wildlife sanctuaries.

    Grandeur of the project

    • Till date, the biggest lift schemes in the world were the Colorado lift scheme in America and the Great Manmade River in Egypt.
    • The capacities of these schemes are in horsepower and they took over three decades for completion.
    • Now, the Kaleshwaram lift irrigation project, an Indian lift scheme has become the worlds biggest in terms of capacities.

    Key facts associated

    • Built across Godavari river, KLIP will lift the water to a height of half-a-kilometre.
    • It is designed to irrigate 45 lakh acres for two crops in a year, meet the drinking water requirement of 70 percent of the state and also cater to the needs of the industry.
    • The foundation stone for the Rs 80,500 crore project was laid in 2016 and claimed to be the world’s biggest project of its kind, completed in the shortest time.
    • The government is planning to lift two thousand million cubic (TMC) feet of Godavari water per day from Medigadda barrage.
    • Claimed to be an engineering marvel, the project comprises 1,832 km water supply route, 1,531 km gravity canal, 203 km tunnel routes, 20 lifts, 19 pump houses and 19 reservoirs with a storage capacity of 141 TMCs.
    • It requires nearly 4,992 MW of electricity to pump 2 TMC of water every day in the first phase. The requirement will go up to 7,152 MW for lifting 3 TMC from next year.

    How important is KLIP to Telangana?

    • The project will enable farmers in Telangana to reap multiple crops with a year-round supply of water wherein earlier they were dependent on rains resulting in frequent crop failures.
    • This year, Telangana farmers have already delivered bumper rabi crops of paddy and maize due to better irrigation facilities and an extended monsoon.
    • KLIS covers several districts which used to face rainfall deficit and the groundwater is fluoride-contaminated.
    • Apart from irrigation, a main component of the project is the supply of drinking water to several towns and villages and also to twin cities of Hyderabad and Secunderabad.
    • Mission Bhagiratha, to supply drinking water to every household in villages, draws a large quantity of water from the KLIS and some quantity from projects on River Krishna.
    • There is a burgeoning freshwater fishing industry in the state.

    Issues with the Project

    • The NGT has observed that the Telangana government subsequently changed the design of the project to increase its capacity.
    • By increasing its capacity to pump 3 TMC water from 2 TMC, large tracts of forest land and other land were taken over and massive infrastructure was built causing an adverse impact on the environment.
    • Extraction of more water certainly requires more storage capacity and also affects hydrology and riverine ecology of Godavari River.
    • Such issues have to be examined by the statutory authorities concerned.

    Back2Basics: National Green Tribunal

    • It is a specialized body set up under the National Green Tribunal Act (2010) for effective and expeditious disposal of cases relating to environmental protection and conservation of forests and other natural resources.
    • With the establishment of the NGT, India became the third country in the world to set up a specialized environmental tribunal, only after Australia and New Zealand, and the first developing country to do so.
    • NGT is mandated to make disposal of applications or appeals finally within 6 months of filing of the same.
    • The NGT has five places of sittings, New Delhi is the Principal place of sitting and Bhopal, Pune, Kolkata and Chennai are the other four.

    Structure of NGT

    • The Tribunal comprises of the Chairperson, the Judicial Members and Expert Members. They shall hold office for a term of five years and are not eligible for reappointment.
    • The Chairperson is appointed by the Central Government in consultation with the Chief Justice of India (CJI).
    • A Selection Committee shall be formed by the central government to appoint the Judicial Members and Expert Members.
    • There are to be at least 10 and a maximum 20 full-time judicial members and Expert Members in the tribunal.

     

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  • Celebrating World Tiger Day

    As the world celebrates yet another World Tiger Day July 29, 2022, there is sobering news.

    Why in news?

    • The International Union for the Conservation of Nature (IUCN) recently confirmed that the tiger has gone extinct in Cambodia, Laos and Vietnam.

    Tigers in India

    • India is home to a third of the global tiger population and the country’s success in saving the big cat is crucial to global efforts to protect their numbers.
    • India was the first country in the world to champion the cause of conservation of the tiger and its natural habitats.
    • The aesthetic, ethical and cultural value of tigers have also proved to be critical factors for saving tigers, which has also ensured the success of tiger conservation in India.

    Why is it necessary to conserve Tigers?

    The tiger is a unique animal that plays a pivotal role in the health and diversity of an ecosystem.

    • Predation balance: It is a top predator which is at the apex of the food chain.
    • Regulation of herbivores: It keeps the population of wild ungulates in check, thereby maintaining the balance between prey herbivores and the vegetation upon which they feed.
    • Ecosystem balance: Therefore, the presence of tigers in the forest is an indicator of the well being of the ecosystem.
    • Tourism: Apart from the ecological services provided by the animal, the tiger also offers direct use such as attracting tourists, which provide incomes for local communities.

    Various efforts to save Tigers

    India is home to 70 percent of the global tiger population. Therefore, the country has an important role to play in tiger conservation.

    [1] Project Tiger

    • The Government of India started ‘Project Tiger’ in 1972 with a view to conserving the animal.
    • As part of this project nine core buffer areas for maintaining tiger population were notified. Now, this has >expanded to 48 tiger reserves.

    [2] CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora)

    • Besides protecting tiger territory, other measures being taken to save the tiger include: curbing wildlife trade through international agreements.
    • CITES is an international agreement between governments aimed at ensuring that international trade in specimens of wild animals and plants, including tigers, does not threaten their survival. India ratified this treaty in 1976.

    [3] Global Tiger Forum and Tiger Range Countries

    • Established in 1994, the Global Tiger Forum is the only inter-governmental body for tiger conservation.
    • Its membership includes seven tiger range countries: Bangladesh, Bhutan, India, Cambodia, Myanmar, Nepal and Vietnam.

    [4] CA|TS

    • 14 tiger reserves have been accredited under CA|TS (Conservation Assured | Tiger Standards) categories.
    • The CA|TS is a set of criteria that examines the management of tiger sites to gauge the success rates of tiger conservation.

    [5] St. Petersburg Declaration

    • This resolution was adopted In November 2010, by the leaders of 13 tiger range countries (TRCs) assembled at an International Tiger Forum in St. Petersburg, Russia
    • It aimed at promoting a global system to protect the natural habitat of tigers and raise awareness among people on white tiger conservation.

    [6] Various NGOs

    • International NGO members consist of World Wildlife Fund, International Fund for Animal Welfare (IFAW), and TRAFFIC.
    • Several national NGOs from India and Nepal are also members.

    Success of these efforts

    The four-year tiger census report, Status of Tigers in India, 2018 shows the number of the big cat has increased across all landscapes.

    The total count has risen to 2,967 from 2,226 in 2014 — an increase of 741 individuals (aged more than one year), or 33%, in four years.

    • At present, India has around 75% of tiger population and its source areas amongst the 13 tiger range countries in the world.
    • 2.24% of country’s geographical area is spread out in 51 tiger reserves in 18 States.

    Various threats to Tigers

    • Despite measures being initiated to protect wild tigers, habitat loss and poaching continue to pose a threat to the animal’s survival.
    • Tiger parts are used in traditional Chinese medicines, tiger skin is used for decorative and medicinal purposes and tiger bones are again used for medicinal purposes for curing body pain, et al.
    • Between 2000 and 2014, TRAFFIC’s research found that parts of a minimum of 1,590 Tigers were seized in Tiger range States, an average of two Tigers per week.

    Other existential threats to tigers

    • Man-Animal conflict: This largely seems a normal phenomenon in India. We broadly remember the case of Tigress Avni which was finally shot dead by the forest officials in Maharashtra.
    • Shrinking habitat: This often leads to territorial conflicts among the Tigers.
    • Issues with Tourism: Excess of tourist activities is problematic for animals. Frequent visits in reserved forests areas disrupt them to move freely for their prey.
    • Climate Change: The effects of climate change and floods are a major problem.  The latest study by WWF shows that Sundarban which is one of the biggest home of tigers in India would sink entirely in 2070.

    Way forward

    • The process of tiger conservation should be more dynamic and compatible with the future possibilities of climatic changes as well.
    • The Forest Department and the Central government can collaborate to protect the natural corridors to ensure the free movement of the tigers for better food resources.
    • Campaigns such as ‘Save the Tiger’ are recommended as effective measures to make people across the country and globe aware of the significance of conserving tiger species.
    • Sensitization of local communities against poaching is also a crucial measure in this regard.
    • We have to make the environment and development co-exist and go hand in hand by planning our future developmental goals in such a manner that our environmental goals are not compromised.

     

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  • INS Vikrant inducted into Indian Navy

    The Indian Navy took delivery of IAC-1 the ‘Vikrant’, the nation’s first indigenously built aircraft carrier from its manufacturer, Cochin Shipyard Ltd.

    Vikrant

    • INS Vikrant also known as Indigenous Aircraft Carrier 1 (IAC-1), is an aircraft carrier constructed by the Cochin Shipyard Limited (CSL) for the Indian Navy.
    • It is the first aircraft carrier to be built in India.
    • It is named ‘Vikrant’ as a tribute to India’s first aircraft carrier, Vikrant (R11).
    • The name Vikrant means “courageous” in Sanskrit.
    • Work on the ship’s design began in 1999, and the keel was laid in February 2009.
    • The carrier was floated out of its dry dock on 29 December 2011 and was launched on 12 August 2013.

    Why is it important for India to have an aircraft carrier?

    • An aircraft carrier is one of the most potent marine assets for any nation, which enhances a Navy’s capability to travel far from its home shores to carry out air domination operations.
    • Many experts consider having an aircraft carrier as essential to be considered a “blue water” navy — that is, a navy that has the capacity to project a nation’s strength and power across the high seas.
    • An aircraft carrier generally leads as the capital ship of a carrier strike/ battle group.
    • As the aircraft carrier is a prized and sometimes vulnerable target, it is usually escorted in the group by destroyers, missile cruisers, frigates, submarines, and supply ships.

    And why is it a big deal that this warship has been Made in India?

    • Only five or six nations currently have the capability of manufacturing an aircraft carrier, and India has joined this prestigious club now.
    • Experts and Navy officials said India has demonstrated the capacity and self-reliance to build what is considered to be one of the most advanced and complex battleships in the world.
    • India’s has had aircraft carriers earlier too — but those were built either by the British or the Russians.
    • The ‘INS Vikramaditya’, which was commissioned in 2013 and which is currently the Navy’s only aircraft carrier, started out as the Soviet-Russian warship ‘Admiral Gorshkov’.
    • India’s two earlier carriers, the ‘INS Vikrant’ and the ‘INS Viraat’, were originally the British-built ‘HMS Hercules’ and ‘HMS Hermes’.
    • These two warships were commissioned into the Navy in 1961 and 1987 respectively.

    Why will this new warship be named ‘INS Vikrant’?

    • IAC-1 — as the carrier is currently codenamed — has been designed by the Indian Navy’s Directorate of Naval Design (DND), and built at Cochin Shipyard Limited (CSL).
    • Once commissioned, it will be called ‘INS Vikrant’, the name that originally belonged to India’s much-loved first aircraft carrier.
    • It was a source of immense national pride over several decades of service before it was decommissioned in 1997.
    • The original ‘Vikrant’, a Majestic-class 19,500-tonne warship, which was acquired from the UK in 1961, played a stellar role in the 1971 War with Pakistan.

    What weapons and equipment will the new ‘Vikrant’ have?

    • The new warship is comparable to India’s existing carrier ‘INS Vikramaditya’, which is a 44,500-tonne vessel and can carry up to 34 aircraft, including both fighter jets and helicopters.
    • The Navy had earlier said that once commissioned, IAC-1 will be “the most potent sea-based asset”, which will operate the Russian-made MiG-29K fighter aircraft and Kamov-31 Air Early Warning Helicopters.
    • The new ‘Vikrant’ will also operate the soon-to-be-inducted MH-60R Seahawk multirole helicopter manufactured by the American aerospace and defence company Lockheed Martin.
    • It will also take onboard the Advanced Light Helicopter (ALH) built by Bengaluru-based Hindustan Aeronautics Ltd.

     

     

  • Tiger conservation

    Context

    India is now reporting increased tiger numbers, and a recent International Union for Conservation of Nature assessment suggests that tiger numbers have increased by 40% since 2005. This is cause for celebration. But is the rise in tiger numbers enough to prevent their extinction?

    Relations between distribution and genetic variation

    • Decades of research in ecology and evolution suggest that numbers are critical to avoid extinction. 
    • Populations that are smaller than 100 breeding individuals have a high probability of extinction.
    • At the same time, for populations to persist, they should be part of larger landscapes with other such populations that are connected.
    • This is because small populations are subject to chance/random events.
    • These chance events may cause them to lose advantageous genetic variants, while other, detrimental genetic variants might increase in frequency.
    • This process is called genetic drift.
    • Individuals in small populations are more likely to be related, leading to inbreeding.
    • This exposes the many slightly disadvantageous genetic variants that are present in all genomes.
    • When expressed together, these detrimental genetic variants cause inbreeding depression, and reduced survival and reproduction of inbred individuals.
    • A closer look at the distribution of tigers across their range shows that most tiger ‘populations’ are smaller than 100.
    • This raises a question why are we not seeing extinctions happening more often? Is this because tiger populations are connected to each other?

    Research findings about movement of tigers

    • One way to answer the question about not so frequent extinction is to use movement data sourced from radio-collared tigers, often difficult to come by for a rare and endangered species.
    • Alternatively, tigers can be genetically sampled using their excreta/scat, hair and other biological samples from different tiger reserves and analysed in a laboratory.
    • Genetic variants in tiger DNA can be identified and analysed and compared across tiger reserves.
    • Genetic variation in landscape with connectivity: Sets of tiger reserves that show shared genetic variation are well connected — the inference is that the intervening landscapes facilitate connectivity or movement.
    • On the flip side, sets of tiger reserves that share less genetic variation must have barriers or landscapes that impede movement and connectivity.
    • Most land-use types were not too bad for tiger connectivity, including agricultural fields.
    • However, the presence of built-up areas and high traffic roads greatly impeded tiger movement.
    • Results showed that extinction could be avoided if corridors were safeguarded.
    • In summary, as long as we manage landscapes outside tiger reserves to allow tiger movement, and protect prey and tigers inside tiger reserves, tigers are sure to survive in landscapes such as central India.

    Genetic changes in isolated tiger population

    • Black tigers were found only in the Similipal tiger reserve in Odisha.
    • Genome sequences of a litter of zoo tigers that included pseudo-melanistic cubs revealed that a single spelling mistake (or mutation) in a specific gene causes these tigers to look this way.
    • Pseudo-melanistic or black tigers found in Odisha has demonstrated the genetic effects of isolation.
    • Results of the research pointed to genetic drift, or random events that have lead to this genetic variant that causes pseudomelanistic coat colour becoming common only in Similipal.
    • On the other side of India, in Rajasthan, genome sequences from wild tigers reveal that individuals in the Ranthambore tiger reserve show inbreeding.
    • In short, we are seeing the genetic effects of isolation and small population size in wild tigers at some locations.

    Way forward

    • Focus on connectivity: While we celebrate the recovery of tiger populations only by looking at numbers, we must not lose sight of other factors that are critical to their continued survival, such as connectivity.
    • Special attention is needed for populations that are becoming isolated and facing the genetic consequences of such isolation.
    • The future of such populations may depend on genetic rescue or even the introduction of novel genetic variants.

    Conclusion

    We are fortunate that novel genome sequencing technology provides an opportunity to understand tigers much better in the context of their conservation. The future of tigers will require a ‘dialogue’ between such data and management strategies in order to ensure their survival. India is lucky to have so many wild tigers and we must work together to save them.

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    Back2Basics: Pseudo-melanism

    • Tigers have a distinctive dark stripe pattern on a light background of white or golden.
    • A rare pattern variant, distinguished by stripes that are broadened and fused together, is also observed in both wild and captive populations.
    • This is known as pseudo-melanism, which is different from true melanism, a condition characterised by unusually high deposition of melanin, a dark pigment.
    • While truly melanistic tigers are yet to be recorded, pseudo-melanistic ones have been camera-trapped repeatedly, and only, in Simlipal, a 2,750-km tiger reserve in Odisha, since 2007

  • What is Household Consumption Expenditure Survey (HCES)?

    The Centre has kicked off the process for conducting the quinquennial Household Consumption Expenditure Survey (HCES) this month.

    What is the Household Consumer Expenditure Survey (CES)?

    • The HCES is traditionally a quinquennial (recurring every five years) survey conducted by the government’s National Sample Survey Office (NSSO).
    • It is designed to collect information on the consumer spending patterns of households across the country, both urban and rural.
    • Typically, the Survey is conducted between July and June and this year’s exercise is expected to be completed by June 2023.

    Why HCES?

    • The HCES is used to arrive at estimates of poverty levels as well as review key economic indicators like Gross Domestic Product (GDP).
    • The results of the survey are also utilised for updating the consumption basket and for base revision of the Consumer Price Index.
    • It helps generate estimates of household Monthly Per Capita Consumer Expenditure (MPCE) as well as the distribution of households and persons over the MPCE classes.
    • It is used to arrive at estimates of poverty levels in different parts of the country and to review economic indicators such as the GDP, since 2011-12.

    Why need this survey?

    • India has not had any official estimates on per capita household spending.
    • It provides separate data sets for rural and urban parts, and also splice spending patterns for each State and Union Territory, as well as different socio-economic groups.

    What about the previous survey?

    • The survey was last held in 2017-2018.
    • The government announced that it had data quality issues.
    • Hence the results were not released.

     

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  • Centre to amend Warehousing Act

    The Union Food and Public Distribution Ministry has suggested major amendments to the Warehousing (Development and Regulation) Act of 2007.

    Warehousing Act, 2007

    • The GOI has introduced a negotiable warehouse receipt system in the country by enacting the Warehousing (Development and Regulation) Act, 2007 (37 of 2007).
    • It has been made effective with effect from the 25th October, 2010.
    • The Negotiable Warehouse Receipt (NWR) system was formally launched on the 26th April, 2011.

    Why was this Act enacted?

    • To make provisions for the development and regulation of warehouses, negotiability of warehouse receipts, establishment of a Warehousing Development and Regulatory Authority (WDRA) and related matters.
    • The Negotiable Warehouse Receipts (NWRs) issued by the warehouses registered under this Act would help the farmers to seek loans from banks against NWRs.
    • It will avoid distress sale of agricultural produce.

    What is the amendment about?

    • The aim is to help farmers get access to the services of quality warehouses.
    • The amendment is:
    1. To make registration of godowns compulsory
    2. To raise the penalty for various offences and
    3. To do away the jail term as a punishment for the offences
    • Central government will have powers to exempt any class of warehouses from registration with the Authority.
    • At present, registration with the Warehousing Development and Regulation Authority (WDRA) is optional.
    • After the proposed amendment, which is yet to be cleared by the cabinet, registration of all third party warehouses throughout the country, will be undertaken in a phased manner.
    • The Act wants to establish a system of negotiable and non-negotiable warehouse receipt (NWR), which is now in electronic form.

    Issues

    • Farmers pressure groups fears that the amendments are for bringing back certain provisions of the repealed Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act through the backdoors.

     

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  • Universal Service Obligation Fund (USOF)

    The Union Cabinet has approved a project for providing 4G mobile services in thousands of villages across the country under the USOF.

    What do you mean by Universal Service?

    • In the modern world, universal service refers to having a phone and affordable phone service in every home.
    • It means, providing telecommunication service with access to a defined minimum service of specified quality to all users everywhere at an affordable price.
    • In 1837, the concept was rolled on by Rowland Hill, a British educator and tax reformer, which included uniform rates across the UK and prepayment by sender via postage stamps.

    What is USOF?

    • The Universal Service Obligation Fund (USOF) was formed by an Act of Parliament, was established in April 2002 under the Indian Telegraph (Amendment) Act 2003.
    • It aims to provide financial support for the provision of telecom services in commercially unviable rural and remote areas of the country.
    • It is an attached office of the Department of Telecom, and is headed by the administrator, who is appointed by the central government.

    Scope of the USOF

    • Initially, the USOF was established with the fundamental objective of providing access to ‘basic’ telecom services to people in rural and remote areas at affordable and reasonable prices.
    • Subsequently, the scope was widened.
    • Now it aims to provide subsidy support for enabling access to all types of telecom services, including mobile services, broadband connectivity and the creation of infrastructure in rural and remote areas.

    Funding of the USOF

    • The resources for the implementation of USO are raised by way of collecting a Universal Service Levy (USL), which is 5 percent of the Adjusted Gross Revenue (AGR) of Telecom Service Providers.

    Nature of the fund

    • USOF is a non-lapsable Fund.
    • The Levy amount is credited to the Consolidated Fund of India.
    • The fund is made available to USOF after due appropriation by the Parliament.

     

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