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GS Paper: GS3

  • Journey towards innovation

    Context

    • Senior scientist Nallathamby Kalaiselvi was appointed the director general of the Council of Scientific and Industrial Research (CSIR), on Saturday, August 6, 2022. This makes her the first woman to head the largest research and development organisation in India, which runs 38 laboratories and institutes, 39 outreach centres, and three innovation centres. 

    What is CSIR?

    • The Council of Scientific and Industrial Research, abbreviated as CSIR, was established by the Government of India in September 1942 as an autonomous body that has emerged as the largest research and development organisation in India.
    • CSIR covers a wide spectrum of science and technology – from oceanography, geophysics, chemicals, drugs, genomics, biotechnology and nanotechnology to mining, aeronautics, instrumentation, environmental engineering and information technology.

    Who established it?

    • Dr Shanti Swarup Bhatnagar
    • He was the Founder Director (and later first Director-General) of CSIR who is credited with establishing twelve national laboratories. He played a significant role in the building of post-independent Science and Technology infrastructure and in the formulation of India’s S & T policies

    CSIR’s Vision

    • “Pursue science which strives for global impact, technology that enables innovation – driven industry and nurture trans-disciplinary leadership thereby catalyzing inclusive economic development for the people of India”

    Why CSIR is important?

    • Innovation: Regarding intellectual property, the CSIR has over 2971 patents filed internationally with 1592 patents filed in India. Since its inception in 1942 over 14000 patents have been granted worldwide. It was awarded the National Intellectual Property Award in 2018 by the India Patent Office.
    • Pandemic handling: CSIR identified the unmet needs, assessed its strengths and capabilities for addressing the pandemic and adopted a multi-pronged strategy of working on diagnostics, surveillance, drugs, hospital assistive devices, personal protective equipment and supply chain and logistics. This strategy is now beginning to yield exciting solutions.

    Contribution of CSIR

    Strategic Sector

    • Head-Up-Display (HUD) In high-tech areas, CSIR-NAL made significant contribution by developing indigenous Head-Up- display(HUD) for Indian Light Combat Aircraft, Tejas. HUD aids the pilot in flying the aircraft and in critical flight maneuvers including weapon aiming.
    • Design and Development of Indigenous Gyrotron: Addressing the challenges of technology denial:Design and development of indigenous gyrotron for nuclear fusion reactor has been accomplished.

    Energy & Environment

    • Solar Tree: On July 22nda solar tree designed by CSIR- CMERI lab in Durgapur was  launched which occupies minimum space to produce clean power.
    • Wax Deoiling Technology:Technology developed for recovery of wax developed in collaboration with Engineers India Limited (EIL) and Numaligarh Refinery Ltd., (NRL). Country’s largest wax producing (50,000 metric ton) plant has been commissioned at NRL with investment of over Rs 600 crore.

    Value added Agriculture

    • Medicinal and Aromatic Plants:Enhanced cultivation of Medicinal and Aromatic Plants in the country brought about through development of new varieties and agro-technologies.
    • Samba Mahsuri Rice Variety – Bacterial Blight Resistant:CSIR has in collaboration with DRR (ICAR) and DBT part funding developed an improved bacterial blight resistant Samba Mahsuri variety.
    • Rice Cultivar (Muktashree) for Arsenic Contaminated Areas:A rice variety has been developed which restricts assimilation of Arsenic within permissible limit. The variety has been released to farmers of West Bengal.
    • White-fly resistant Cotton variety:Developed a transgenic cotton line which is resistant to whiteflies. It is expected to render it commercially cultivable in 10 years, after due regulatory clearances.

    Healthcare

    • JD Vaccine for Farm Animals:Vaccine developed and commercialized for Johne’s disease affecting Sheep, Goat, Cow and Buffalo so as to immunize them and increase milk and meat production.
    • Plasma Gelsolin Diagnostic Kit for Premature Births, and Sepsis related Deaths:A new kit is being developed to diagnose pre-mature birth and sepsis.
    • Genomics and other omics technologies for Enabling Medical Decision – GOMED: Genetic diseases, though are individually rare, cumulatively affect a large number of individuals. A programme called GOMED (Genomics and other omics technologies for Enabling Medical Decision) has been developed by the CSIR which provides a platform of disease genomics to solve clinical problems.

      Food & Nutrition

    • Ksheer-scanner: The Ksheer Scanner, a new technological invention by CSIR-CEERI detects the level of milk adulteration and adulterants in 45 seconds at the cost of 10 paise,
    • Double-Fortified Salt:Salt fortified with iodine and iron having improved properties developed and tested for addressing anaemia in people. To be launched in the market soon.
    • Anti-obesity DAG Oil:Oil enriched with Diacylglycerol (DAG) instead of conventional triacylglycerol (TAG) developed. To be launched in the market soon.

    Water

    • Aquifer Mapping of Water Scarce Areas: Heliborne transient electromagnetic and surface magnetic technique based aquifer mapping carried out in six different geological locations in Rajasthan (2), Bihar, Karnataka, Maharashtra and Tamil Nadu.
    • Understanding the Special Properties of the Ganga Water:Assessment of Water Quality & Sediment Analysis of Ganga from different parts being done.

    Some of the challenges faced for sustainable growth of R&D in India are

    • Low research professionals: India has an estimated full-time equivalent R&D professional strength of only 150 professionals per million, compared to that of other countries.
    • Low investment: Indian research is mostly skewed towards basic research and lacks in application oriented R&D. The vast majority of organizations would rather go for quick acquisition of technology rather than invest in internal R&D.
    • IPR enforcement: Inadequate enforcement of intellectual property rights (IPR). While India has improved its IPR regime, the protection of intellectual property remains weak in some areas owing to inadequate laws and ineffective enforcement.

    Some positive suggestions to improve innovation

    • Embrace technology: Technologies, such as machine learning, can be used to improve R&D decision-making. Documents need to be filed throughout the R&D process, for example, and the process could be automated to free up employees to do more complex tasks.
    • Invest in innovation hubs: Companies that invest in innovation hubs expand talent and relationships with local universities and startups can support a two-way learning process and faster innovation cycles.
    • Promoting startups: Most radical innovations are coming from startups and more of them are needed. Tilting higher education towards science and encouraging more students to take degrees in science-based subjects can provide the people needed for R&D.

    Conclusion

    India is a strong contender in the field of Global R&D. For India to derive maximum growth and sustainability of R&D, its R&D fundamentals have to be strong and excellent.

    Mains question

    Q.Culture of innovation is needed in national growth in this context discuss what is IPR regime? How CSIR has helped to consolidate it?

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  • Assessment of discoms

    Context

    • The Andhra Pradesh (A.P.) power distribution companies (DISCOMs) subscribed to the Late Payment Surcharge (LPS) scheme introduced by the Central government to reduce their liability to generators in a phased manner over the next 12 months.

    What are discoms?

    • Power distribution companies collect payments from consumers against their energy supplies (purchased from generators) to provide necessary cash flows to the generation and transmission sectors to operate.

    What is UDAY scheme?

    • Ujjwal DISCOM Assurance Yojana is the financial turnaround and revival package for electricity distribution companies of India initiated by the Government of India with the intent to find a permanent solution to the financial mess that the power distribution is in.

    What is The Revamped Distribution Sector Scheme (RDSS)?

    • The revamped power distribution sector scheme aims to: Improve operational efficiencies, financial sustainability of discoms and power departments. Provide financial assistance to discoms. Modernise and strengthen distribution infrastructure. Improve reliability and quality of supply to the end consumers.

    Low performance of Discoms

    1) On the basis of AT&C losses

    • A key metric to measure the performance of discoms is AT&C losses.
    • The UDAY scheme had envisaged bringing down these losses to 15 per cent by 2019.
    • However, as per data on the UDAY dashboard, the AT&C losses currently stand at 21.7 per cent at the all-India level.
    • In the case of the low-income north and central-eastern states — Uttar Pradesh, Bihar, Jharkhand and Chhattisgarh — the losses are considerably higher.

    2) On the basis of cost and revenue per unit

    • On another metric — the gap between discoms costs and revenues — the difference, supposed to have been eliminated by now, stands at Rs 0.49 per unit in the absence of regular and commensurate tariff hikes.
    • For the high-income southern states of Tamil Nadu, Andhra Pradesh, and Telangana, this gap between costs and revenues is significantly higher.

    What are the factors responsible for inefficiencies?

    1) Electrification push without cost restructuring

    • The government’s push for ensuring electrification of all have contributed to greater inefficiency.
    •  To support higher levels of electrification, cost structures need to be reworked, and the distribution network would need to be augmented — in the absence of all this, losses are bound to rise.

    2) Economic fallout of the pandemic

    • With demand from industrial and commercial users falling, revenue from this stream, which is used to cross-subsidise other consumers, has declined, exacerbating the stress on discom finances.
    • A turnaround in the economy will provide some relief, but will not form the basis of a sustained improvement in finances.

    3) Lack of consumer data and metering

    •  Even six years after UDAY was launched, various levels in the distribution chain — the feeder, the distribution transformer (DT) and the consumer — have not been fully metered.
    • As a result, it is difficult to ascertain the level in the chain where losses are occurring.
    • Other than discoms in metros like Delhi and Mumbai, there is also limited data on which consumer is attached to which DT.
    • This lack of data makes it difficult to isolate and identify loss-making areas and take corrective action.

    4) No tariff hike

    • The continuing absence of political consensus at the state level to raise tariffs or to bring down AT&C losses signal a lack of resolve to tackle the issues plaguing the sector.

    Suggestions to improve the situation

    • Single discom: One of the solution centres around a national power distribution company.
    • Financial adjustment: Another option is to deduct discom dues, owed to both public and private power generating companies, from state balances with the RBI forcing states to take the necessary steps to fix discom finances.
    • National Open Access Registry (NOAR): NOAR is a centralized online platform through which the short-term open access to the inter-state transmission system is being managed in India.
    • Promote privatization: Since in an earlier policy statement the government had mentioned that privatization of discoms is to be promoted, it would make sense to consider this transitional support as a catalyst.
    • Provide transitional financial support: An alternate approach that could be considered by the Centre (in lieu of such assistance schemes) is providing only transitional financial support to all discoms, which are privatized under the private-public partnership mode.

    Conclusion

    • Continuously subsidising discoms for their AT&C losses (operational inefficiencies), and for not supplying power at commensurate tariffs to low-income households and agricultural customers (for political considerations) will become fiscally untenable.

    Mains question

    Q.There is growing demand for one nation one grid in this context Discuss the problems faced by various discoms. Suggest some robust solutions to address these problems sustainably.

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  • Centre to file review petition on Eco-Sensitive Zones in SC

    Union Minister of Environment, Forest and Climate Change has said that the Ministry will file a review petition in the Supreme Court urging a relook into its judgment on eco-sensitive zones.

    Why in news?

    • The Supreme Court has earlier directed that every protected forest, national park and wildlife sanctuary across the country should have a mandatory eco-sensitive zone (ESZ) of a minimum one km starting from their demarcated boundaries.

    Why such move?

    • The purpose of declaring ESZs around national parks, forests and sanctuaries is to create some kind of a “shock absorber” for the protected areas.
    • These zones would act as a transition zone from areas of high protection to those involving lesser protection.

    What are the Eco-sensitive Zones (ESZs)?

    • Eco-Sensitive Zones (ESZs) or Ecologically Fragile Areas (EFAs) are areas notified by the MoEFCC around Protected Areas, National Parks and Wildlife Sanctuaries.
    • The purpose of declaring ESZs is to create some kind of “shock absorbers” to the protected areas by regulating and managing the activities around such areas.
    • They also act as a transition zone from areas of high protection to areas involving lesser protection.

    How are they demarcated?

    • The Environment (Protection) Act, 1986 does not mention the word “Eco-Sensitive Zones”.
    • However, Section 3(2)(v) of the Act, says that Central Government can restrict areas in which any industries, operations or processes or class of industries, operations or processes shall be carried out or shall not, subject to certain safeguards.
    • Besides Rule 5(1) of the Environment (Protection) Rules, 1986 states that central government can prohibit or restrict the location of industries and carrying on certain operations or processes on the basis of certain considerations.
    • The same criteria have been used by the government to declare No Development Zones (NDZs).

    Defining its boundaries

    • An ESZ could go up to 10 kilometres around a protected area as provided in the Wildlife Conservation Strategy, 2002.
    • Moreover, in the case where sensitive corridors, connectivity and ecologically important patches, crucial for landscape linkage, are beyond 10 km width, these should be included in the ESZs.
    • Further, even in the context of a particular Protected Area, the distribution of an area of ESZ and the extent of regulation may not be uniform all around and it could be of variable width and extent.

     

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  • Nehru’s luminous legacy

    Context

    • Seventy-five years ago, India’s first Prime Minister Pandit Jawaharlal Nehru made these remarks in his stirring speech on India attaining freedom at midnight: “The achievement we celebrate today is but a step, an opening of opportunity, to the greater triumphs and achievements that await us. Are we brave enough and wise enough to grasp this opportunity and accept the challenge of the future?”

    Nehru’s vision for India

    • Nehru’s vision of India was anchored in a set of ideas such as democracy, secularism, inclusive economic growth, free press and non-alignment in international affairs and also in institutions that would lay the foundation for India’s future growth.

    Leadership of Nehru after independence

    • In 1947, Nehru, as Prime Minister, inherited an India that was politically shattered, socially divided and emotionally devastated. Yet, with restraint and self-confidence, he steered the country through those turbulent times and laid out the vision of a modern, progressive nation that quietly earned the respect of the global community.

    Temple of modern India

    • The Bhakra-Nangal Dam: The Bhakra-Nangal Dam project is a series of multi-purpose dams that were among the earliest river valley developments schemes undertaken by the government of India after independence. The project, though, had been conceived long before independence.
    • Bhilai Steel Plant: Bhilai, located in Chhattisgarh, was home to massive iron-ore deposits at Dalli Rajhara. Taking this into consideration, the government of India and the USSR entered into an agreement which was signed on March 2nd 1955, at New Delhi.
    • Bhabha Atomic Research Centre: The Atomic Energy Establishment, Trombay (AEET), was started by the government of India on January 3rd 1954 with the intention of consolidating all research and development activities for nuclear reactors and technology under the Atomic Energy Commission.
    • Indian Council of Agricultural Research (ICAR): to support indigenous scientists like Boshi Sen, who is credited with producing hybrid maize and irradiated wheat mutant.

    Relevance of these institutions

    • Economic Development:Economic development mainly depends upon industrial development. Heavy & basic industries like iron & steel, shipping, mining, etc. are required for supplying raw materials to small industries.
    • Regional Development:Private sector usually neglect backward area. But public sector organizations set up their units in economically backward areas. By this public sector removes regional imbalance & brings regional development.
    • Employment:Various public sectors operating in India needs lot of manpower & this provide employment to unlimited individuals according to their education, experience & abilities.
    • Service Motive: Public sector organizations are working with the only motive of providing public utility services to society at large irrespective of profit.
    • Sound Infrastructure:Rapid industrial growth in a country needs sound infrastructure. Infrastructural industries require huge capital for construction of Roads, Railways, Electricity & many such industries. Private sector is unable to have such huge capital & that also without any high return but public sector can easily afford to provide all infrastructural facilities.

    Some challenges they face today

    • Inefficient Management: It has been found that these enterprises are managed by public savants. They are not professionally qualified nor experts in the management of industrial enterprises.
    • Lack of Efficiency: They are not run on commercial principles. Their main motto is social welfare, not profit earning.
    • Lack of Innovations: Innovations are essential for economic development. Public enterprise lacks it due to monopoly or lack of competition. The private sector is always busy with innovating new techniques, new production methods, etc. For the purpose of cost reduction and profit maximization.

    Some suggestions to address the challenges

    • Sound business principles: The enterprise should be run on sound business principles. There should be focus on improving efficiency in all functional areas. Policies, systems and procedures should be modified with the aim of making the enterprise flexible, efficient and profitable.
    • Autonomy: Public enterprises should have considerable autonomy in their functioning. Authority should be delegated and they should have the freedom to take decisions. Autonomy would ensure that decisions are taken at the right time and growth opportunities utilized in the best possible manner.
    • Freedom from political interference: Many public enterprises are considered to be the kingdoms of politicians. They are run to suit the needs and requirements of the ruling party.

    Conclusion

    • Today, opinions are divided about the iconic leader. While Nehru always had his critiques even back in the day, a significant section of the masses despise the dynasty politics of the Congress that ensued after his passing in 1964.
    • However, his contributions to India’s freedom, and as a Prime Minister to his country are acknowledged by people both within and outside India. His shortcomings do not take away from the legacy he cemented as a propagator for freedom, and as the free nation’s first Prime Minister.

    Mains question

    Assess the Nehruvian legacy of public sector. Do you think they are still relevant today? While discussing challenges they face what suggestion will you give to improve their performance.

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  • Coastal ecosystem norms

    This week, the Comptroller and Auditor General (CAG) of India tabled a report in Parliament on whether steps taken by the Union Environment Ministry to conserve India’s coastal ecosystems have been successful.

    Why in news?

    • The CAG frequently undertakes ‘performance audits’ of government programmes and ministries.

    Centre’s obligations on conserving the coastline

    • The government has issued notifications under the Environment Protection Act, 1986, to regulate activities along India’s coasts particularly regarding construction.
    • The Coastal Regulation Zone Notification (CRZ), 2019 implemented by the Ministry, classifies the coastal area into different zones to manage infrastructure activities and regulate them.

    The three institutions responsible for the implementation of the CRZ are:

    1. National Coastal Zone Management Authority (NCZMA) at the Centre,
    2. State/Union Territory Coastal Zone Management Authorities (SCZMAs/UTCZMAs) in every coastal State and Union Territory
    3. District Level Committees (DLCs) in every district that has a coastal stretch and where the CRZ notification is applicable

    Functions under CRZ rules

    • These bodies examine if CRZ clearances granted by the government are as per procedure, if project developers are once given the go-ahead are complying with conditions and if the project development objectives under the Integrated Coastal Zone Management Programme (ICZMP) are successful.
    • They also evaluate the measures taken up by the government towards achieving the targets under Sustainable Development Goals.

    Why did the CAG undertake this audit?

    • The CAG has a constitutional mandate to investigate and report on publicly funded programmes.
    • The CAG conducted “pre-audit studies” and found that there were large-scale CRZ violations in the coastal stretches.
    • Incidences of illegal construction activities (reducing coastal space) and effluent discharges from local bodies, industries and aquaculture farms had been reported by the media and this prompted it to undertake a detailed investigation.

    What did the recent audit find?

    The audit pointed out various categories of violations.

    • There were instances of the Expert Appraisal Committees —who evaluate the feasibility of an infrastructure project and its environmental consequences — not being present during project deliberations.
    • There were also instances of the members of the EAC being fewer than half of the total strength during the deliberations.
    • The SCZMA had not been reconstituted in Karnataka and there was delayed reconstitution in the States of Goa, Odisha and West Bengal.
    • The DLCs of Tamil Nadu lacked participation from local traditional communities. In Andhra Pradesh, DLCs were not even established.
    • There were instances of projects being approved despite inadequacies in the Environment Impact Assessment (EIA) reports.

    What problems did the CAG find in the States?

    • Lack of strategy: Tamil Nadu didn’t have a strategy in place to conserve the Gulf of Mannar Islands.
    • Lack of monitoring: In Goa, there was no system for monitoring coral reefs and no management plans to conserve turtle nesting sites.
    • No scientific oversight: In Gujarat, instruments procured to study the physiochemical parameters of soil and water of the inertial area of the Gulf of Kutch weren’t used.
    • Monitoring issues: Sea patrolling in Gahirmatha Sanctuary, in Kendrapara, Odisha did not happen.
    • No information in public domain: There was no website to disseminate the information related to the NCZMA, the CAG found, which is a clear violation of the mandated requirements of the Authority.

    What lies ahead?

    • These reports are placed before the Standing Committees of Parliament, which select those findings and recommendations that they judge to be the most critical to public interest and arrange hearings on them.
    • In this case, the Environment Ministry is expected to explain omissions pointed out by the CAG and make amends.

    Back2Basics: Comptroller and Auditor General (CAG) of India

    • The CAG is the Constitutional Authority, established under Article 148 of the Constitution of India.
    • They are empowered to Audit all receipts and expenditure of the GoI and the State Governments, including those of autonomous bodies and corporations substantially financed by the Government.
    • The CAG is also the statutory auditor of Government-owned corporations.
    • It conducts supplementary audit of government companies in which the Government has an equity share of at least 51 per cent or subsidiary companies of existing government companies.
    • The reports of the CAG are laid before the Parliament/Legislatures and are being taken up for discussion by the Public Accounts Committees (PACs) and Committees on Public Undertakings (COPUs).

     

     

  • Punjab bans use of 10 insecticides

    Amid reports that several samples of basmati rice contained the residue of certain pesticides above the maximum residue level (MRL), the Punjab government has decided to ban the use of 10 formulations.

    Which are the chemicals banned?

    • The State government believed that the sale, stock distribution, and use of Acephate, Buprofezin, Chloropyriphos, Methamidophos, Propiconazole, Thiamethoxam, Profenofos, Isoprothiolane, Carbendazim, and Tricyclazole was not in the interest of basmati rice growers.
    • It is said that there is a risk of breaching the MRL fixed by the competent authority for basmati rice.

    What is the Maximum Residue Limit (MRL)?

    • MRL is the highest level of pesticide residue that is legally tolerated in or on food or feed when pesticides are applied correctly in accordance with Good Agricultural Practice promulgated by Food and Agriculture Organization (FAO).
    • The MRL is usually determined by repeated (on the order of 10) field trials at an appropriate pre-harvest interval or withholding period has elapsed.
    • For many pesticides, this is set at the Limit of determination (LOD) – since only major pesticides have been evaluated and understanding of acceptable daily intake (ADI) is incomplete.

     

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  • What is Essential Commodities Act?

    The Centre has invoked the Essential Commodities Act of 1955 to ask States to monitor and verify the stocks of Arhar/Tur Dal available with traders.

    Essential Commodities Act

    • The ECA, 1955 was established to ensure the delivery of certain commodities or products, the supply of which, if obstructed due to hoarding or black marketing, would affect the normal life of the people.
    • The list of items under the Act includes drugs, fertilizers, pulses, and edible oils, as well as petroleum and petroleum products.
    • The Centre can include new commodities as and when the need arises, and takes them off the list once the situation improves.
    • Additionally, the government can also fix the maximum retail price (MRP) of any packaged product that it declares an “essential commodity”.

    How ECA works?

    (1) Centre notifying stock limit holding

    • If the Centre finds that a certain commodity is in short supply and its price is spiking, it can notify stock-holding limits on it for a specified period.
    • The States act on this notification to specify limits and take steps to ensure that these are adhered to.
    • Anybody trading or dealing in the commodity, be it wholesalers, retailers or even importers are prevented from stockpiling it beyond a certain quantity.

    (2) States can opt-out

    • A State can, however, choose not to impose any restrictions.
    • But once it does, traders have to immediately sell into the market any stocks held beyond the mandated quantity.

    What happens for non-compliance?

    • As not all shopkeepers and traders comply, State agencies conduct raids to get everyone to toe the line and the errant are punished.
    • The excess stocks are auctioned or sold through fair price shops.
    • This improves supplies and brings down prices.

    Ex: The Union Government has brought masks and hand-sanitizers under the ECA to make sure that these products, key for preventing the spread of Covid-19 infection, are available to people at the right price and in the right quality. Later this move was reverted.

    What about Food Items?

    (1) Items covered:

    Rice, wheat, atta, gram dal, arhar dal, moong dal, urad dal, masoor, dal, tea, sugar, salt, Vanaspati, groundnut oil, mustard oil, milk, soya oil, palm oil, sunflower oil, gur, potato, onion and tomato.

    (2) Price Stabilization Fund (PSF):

    The government utilizes the buffer of agri-horticultural commodities like pulses, onion, etc. built under Price Stabilization Fund (PSF) to help moderate the volatility in prices.

    Recent amendments to the ECA

    In 2020, the EC Act was amended for the stock limit to be imposed only under exceptional circumstances such as famine or other calamities.

    • Exceptional circumstances: It allowed the centre to delist certain commodities as essential, allowing the government to regulate their supply and prices only in cases of war, famine, extraordinary price rises, or natural calamities.
    • Commodities de-regulated: The commodities that have been deregulated are food items, including cereals, pulses, potatoes, onion, edible oilseeds, and oils.

    Exceptions provided

    • The government regulation of stocks will be based on rising prices, and can only be imposed if there is
    1. A 100% increase in retail price in the case of horticultural produce and
    2. A 50% increase in retail price in the case of non-perishable agricultural food items
    • These restrictions will not apply to stocks of food held for public distribution in India.

     

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  • In news: Ongole Cattle Breed

    Ongole breed of cattle had remained indispensable for all farm operations for centuries in Prakasam district of Andhra Pradesh in view of their draught power.

    Ongole Cattle

    • Ongole cattle are an indigenous cattle breed that originates from Prakasam District in the state of Andhra Pradesh.
    • The breed derives its name from the place the breed originates from, Ongole.
    • The Ongole breed of cattle Bos Indicus, has a great demand as it is said to possess resistance to both foot and mouth disease and mad cow disease.

    What’s so special about this breed?

    • Cattle breeders use the fighting ability of the bulls to choose the right stock for breeding in terms of purity and strength.
    • Ongole cattle are known for their toughness, rapid growth rate, and natural tolerance to tropical heat and disease resistance.
    • It was perhaps the first Indian breed of cattle to gain worldwide recognition.
    • Ongole milk is rich in A2 (allele of Beta Casein).
    • They fetches a premium price of over ₹150 per litre as it enables consumers build immunity against viral and other diseases.

    Global Prominence

    • Ongole bulls have gone as far as America, the Netherlands, Malaysia, Brazil, Argentina, Colombia, Mexico, Paraguay, Indonesia, West Indies, Australia, Fiji, Mauritius, Indo-China and Philippines.
    • The Brahmana bull in America is an off-breed of the Ongole.
    • The population of Ongole off-breed in Brazil is said to number several million.
    • The famous Santa Gertrudis breed developed in Texas, USA have Ongole blood.
    • It has gained global prominence, particularly in Brazil which imported barely hundred animals and produced multiple superior breeds like the world famous Zebu.

     

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  • What happens after a Cooperative Bank to shuts down?

    The Reserve Bank of India (RBI) announced it had cancelled the banking licence of a Pune-based Rupee Cooperative Bank, and directed the Registrar of Cooperative Societies to liquidate the bank.

    What is a Banking Licence?

    • Financial institutions wishing to carry out banking operations such as accepting deposits or lending have to obtain a licence from India’s central bank.
    • The RBI issues the licence under the Banking Regulation Act of 1949 after carrying out a series of checks about the financial suitability of the applicant institution.
    • Parameters like capital adequacy ratio (CAR) — the ratio of a bank’s available capital to its risk weighted credit exposure — and loan to deposit ratio (LDR) — the ratio of a bank’s total loans to total deposits in the same period — are checked before the licence is granted.
    • The 1949 Act in particular stresses on adequate capital and protection of the public interest before the licence is granted.
    • No company other than one that has been issued a banking licence is allowed to use the word bank in its name while doing business.

    Cancelling the licence of a Bank

    • RBI, which issues the licence, has the power to cancel it as well, in case the bank fails to satisfy laid-down conditions.
    • This could mean an increase in bad debts — and if the RBI feels a bank does not have enough capital to cover its exposure and pay its depositors, its licence can be suspended or cancelled.

    Why did RBI cancel the licence of Rupee Cooperative Bank?

    • The RBI audits banks every year, and can take action if it notes an increase in bad debts or other suspicious activities in their books.
    • In its press release, the RBI gave the reasons for the cancellation of the bank’s licence:
    1. The bank does not have adequate capital and earning prospects.
    2. The bank has failed to comply with the requirements of certain sections of the Banking Regulation Act, 1949;
    3. The continuance of the bank is prejudicial to the interests of its positions;
    4. The bank with its present financial position would be unable to pay its present depositors in full; and
    5. Public interest would be adversely affected if the bank is allowed to carry on its banking business any further.

    Section 22 of the Act deals with “licensing of banking companies”, section 11 is about “requirement as to minimum paid-up capital and reserves”, and section 56 is about the applicability of the Act to cooperative societies, subject to modifications.

    Was cancellation of the licence the only option left for RBI?

    • RBI had issued notice to that Cooperative Bank in 2013, and issued directions under the Banking Regulation Act before cancelling its licence.
    • All banking activities like withdrawal were suspended, the then board of directors was superseded.
    • The banker took a number of steps to revive the bank, including filing of criminal cases against defaulting directors, employees, and seizing of their properties.
    • The RBI extended the licence of the bank every three months as these steps were being taken.
    • The administrator also tried to merge the bank with a financially stable bank. But the bad debts scared away most suitors.

    What will happen to the depositors’ money in Rupee Cooperative Bank?

    • The limiting of withdrawals by RBI had made things difficult for depositors, especially because cooperative banks are preferred by those from the lower income group.
    • The big question before the over 5.5 lakh depositors now is about the fate of their money.
    • The RBI has said that depositors with Rs 5 lakh or less in the bank, would get back all of their money through the Deposit Insurance and Credit Guarantee Corporation (DICGC).
    • Those who have larger deposits in the bank will not get back their money beyond Rs 5 lakh.
    • In this group are about 4,600 depositors with a total Rs 340 crore in deposits in the bank.
    • These people stand to suffer major losses.

    Back2Basics: Deposit Insurance Programme

    • The bank savings are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act providing full coverage to around 98 per cent of bank accounts.
    • Earlier, account holders had to wait for years till the liquidation or restructuring of a distressed lender to get their deposits that are insured against default.
    • Last year, the government raised the insurance amount to Rs 5 lakh from Rs 1 lakh.
    • Prior to that, the DICGC had revised the deposit insurance cover to Rs 1 lakh on May 1, 1993 — raising it from Rs 30,000, which had been the cover from 1980 onward.

    What are new changes?

    • Earlier, out of the amount deposited in the bank, only Rs 50,000 was guaranteed, which was then raised to Rs 1 lakh.
    • Understanding the concern of the poor, understanding the concern of the middle class, we increased this amount to Rs 5 lakh.
    • If a bank is weak or is even about to go bankrupt, depositors will get their money of up to Rs five lakhs within 90 days.

     

     

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  • What is Langya Virus?

    A new virus, Langya henipavirus, is suspected to have caused infections in 35 people in China’s Shandong and Henan provinces over roughly a two-year period to 2021.

    Langya Virus

    • It’s related to Hendra and Nipah viruses, which cause disease in humans.
    • However, there’s much we don’t know about the new virus – known as LayV for short – including whether it spreads from human to human.

    How sick are people getting?

    • Symptoms reported appeared to be mostly mild – fever, fatigue, cough, loss of appetite, muscle aches, nausea and headache – although we don’t know how long the patients were unwell.
    • A smaller proportion had potentially more serious complications, including pneumonia, and abnormalities in liver and kidney function.
    • However, the severity of these abnormalities, the need for hospitalization, and whether any cases were fatal were not reported.

    Where did this virus come from?

    • The authors also investigated whether domestic or wild animals may have been the source of the virus.
    • Although they found a small number of goats and dogs that may have been infected with the virus in the past, there was more direct evidence a significant proportion of wild shrews were harbouring the virus.
    • This suggests humans may have caught the virus from wild shrews.

    Does this virus actually cause this disease?

    • The researchers used a modern technique known as metagenomic analysis to find this new virus.
    • Researchers sequence all genetic material then discard the “known” sequences (for example, human DNA) to look for “unknown” sequences that might represent a new virus.
    • This raises the question about how scientists can tell whether a particular virus causes the disease.
    • Researchers used “Koch’s Postulates” to determine whether a particular micro-organism causes disease:
    1. it must be found in people with the disease and not in well people
    2. it must be able to be isolated from people with the disease
    3. the isolate from people with the disease must cause the disease if given to a healthy person (or animal)
    4. it must be able to be re-isolated from the healthy person after they become ill.

    What can we learn from related viruses?

    • This new virus appears to be a close cousin of two other viruses that are significant in humans: Nipah virus and Hendra virus.
    • This family of viruses was the inspiration for the fictional MEV-1 virus in the film Contagion.
    • Hendra virus was first reported in Queensland in 1994, when it caused the deaths of 14 horses and the trainer Vic Rail.
    • Nipah virus is more significant globally, with outbreaks frequently reported in Bangladesh.

    What lies ahead?

    • Little is known about this new virus, and the currently reported cases are likely to be the tip of the iceberg.
    • At this stage, there is no indication the virus can spread from human to human.
    • Further work is required to determine how severe the infection can be, how it spreads, and how widespread it might be in China and the region.

     

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