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GS Paper: GS3

  • [pib] Soil Health Card Scheme

    National Productivity Council (NPC) has carried out a study on ‘Soil Testing Infrastructure for Faster Delivery of Soil Health Card in India’ in 2017.

    What did the study find?

    • In the study it was found that application of fertilizer and micronutrients based on Soil Health Card (SHC) recommendations resulted in 8-10% of savings.
    • It has led to an overall increase in the yield of crops to the tune of 5-6% reported by adopting the SHC recommendations.

     About Soil Health Card Scheme

    • Soil Health Card (SHC) scheme is promoted by the Department of Agriculture & Co-operation under the Ministry of Agriculture and Farmers’ Welfare.
    • An SHC is meant to give each farmer soil nutrient status of his/her holding and advice him/her on the dosage of fertilizers and also the needed soil amendments, that s/he should apply to maintain soil health in the long run.
    • SHC is a printed report that a farmer will be handed over for each of his holdings.
    • It will be made available once in a cycle of 2 years, which will indicate the status of soil health of a farmer’s holding for that particular period.
    • The SHC given in the next cycle of 2 years will be able to record the changes in the soil health for that subsequent period.

    Parameters of SHC:

    • N, P, K (Macro-nutrients)
    • Sulfur (S) (Secondary- nutrient)
    • Zn, Fe, Cu, Mn, Bo (Micronutrients)
    • pH, EC (Electrical conductivity) , OC (Organic content)

    Try this PYQ:

    Q. The nation-wide ‘Soil Health Card Scheme’ aims at:

    1. expanding the cultivable area under irrigation.
    2. enabling the banks to assess the quantum of loans to be granted to farmers on the basis of soil quality.
    3. checking the overuse of fertilizers in farmlands.

    Which of the above statements is/are correct?

    (a) 1 and 2 only

    (b) 3 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

     

    [wpdiscuz-feedback id=”2l7krk8ive” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • Risks involved in investment in cryptocurrencies

    Context

    We are witnessing the change where the cult of savers has changed into investors. They are looking for a good return and willing to take the risk.

    Changing the behaviour of the savers

    • There is a new wave of savings and investments in the country that is evolving quite fast.
    • Crypto exchanges assure you that they are safe.
    • But it is the exchange that is safe, not the value of the coin, which will be driven by the market.
    • The equity boom is on, and all the unicorns have delivered excellent results.
    • That’s why bank deposits are no longer on our plates.
    • Banks discouraging deposits: Interestingly, banks today are discouraging deposits with low rates as this is the only way they can manage their balance sheets.
    • Low-interest rate: There are few deployment avenues and paying 5 per cent interest to savers and investing the deposits at 3.35 per cent in the reverse repo auction is a sub-optimal game.

    How safe is investment in cryptocurrencies?

    • From equities, there has been a swift shift to cryptos, which is still a grey area.
    • The regulators/government are wondering what to do. The issue will be discussed in the winter session of Parliament.
    • But investments have been made and there is no stopping this global wave.
    • Currency with no underlying asset: Making money on a currency that has no underlying asset like a metal or other currency and is traded on faith is unique; especially Bitcoin, whose originator is not known by face but by just a name.

    Gaming as a skill

    • There is another door to a new kind of gaming where you make money by making teams and following the matches.
    • The law was first silent, and then confused.
    • But it finally accepted gaming as a skill.
    • Logically, soon we should be able to bet on matches too, if all this is in order.

    Conclusion

    We are witnessing a change in the pattern of holding onto money, where savings get transformed to investment and risk appetite changes from conservative to aggressive. Will this change? Probably not, in the near future, as long as conventional deposits continue to give inferior returns.

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  • What is a Tundra Satellite?

    Russia has successfully placed into orbit a military satellite believed to be part of the Kremlin’s early warning anti-missile system. This launch could be delivering a Tundra satellite.

    Tundra Satellite

    • The Tundra or EKS (Edinaya Kosmicheskaya Sistema) series of satellites is the next generation of Russian early-warning satellites.
    • The development of the EKS started in 2000.
    • These satellites carry a secure emergency communications payload to be used in case of a nuclear war.
    • They are launched on Soyuz-2-1b Fregat boosters into Molniya-orbits, inclined highly elliptical 12 h orbits.

    What are Tundra Orbits?

    • A Tundra orbit is a highly elliptical geosynchronous orbit with a high inclination (approximately 63.4°), an orbital period of one sidereal day.
    • A satellite placed in this orbit spends most of its time over a chosen area of the Earth, a phenomenon known as apogee dwell.
    • It makes satellites particularly well suited for communications satellites serving high latitude regions.
    • The ground track of a satellite in a Tundra orbit is a closed figure 8 with a smaller loop over either the northern or southern hemisphere.
    • This differentiates them from Molniya orbits designed to service high-latitude regions, which have the same inclination but half the period and do not hover over a single region.

    Back2Basics: Types of Orbits

    [1] Geostationary orbit (GEO)

    • Satellites in geostationary orbit (GEO) circle Earth above the equator from west to east following Earth’s rotation – taking 23 hours 56 minutes and 4 seconds – by travelling at exactly the same rate as Earth.
    • This makes satellites in GEO appear to be ‘stationary’ over a fixed position.
    • In order to perfectly match Earth’s rotation, the speed of GEO satellites should be about 3 km per second at an altitude of 35 786 km.
    • This is much farther from Earth’s surface compared to many satellites.
    • GEO is used by satellites that need to stay constantly above one particular place over Earth, such as telecommunication satellites.
    • Satellites in GEO cover a large range of Earth so as few as three equally-spaced satellites can provide near-global coverage.

    [2] Low Earth orbit (LEO)

    • A low Earth orbit (LEO) is, as the name suggests, an orbit that is relatively close to Earth’s surface.
    • It is normally at an altitude of less than 1000 km but could be as low as 160 km above Earth – which is low compared to other orbits, but still very far above Earth’s surface.
    • Unlike satellites in GEO that must always orbit along Earth’s equator, LEO satellites do not always have to follow a particular path around Earth in the same way – their plane can be tilted.
    • This means there are more available routes for satellites in LEO, which is one of the reasons why LEO is a very commonly used orbit.
    • It is most commonly used for satellite imaging, as being near the surface allows it to take images of higher resolution.
    • Satellites in this orbit travel at a speed of around 7.8 km per second; at this speed, a satellite takes approximately 90 minutes to circle Earth.

    [3] Medium Earth orbit (MEO)

    • Medium Earth orbit comprises a wide range of orbits anywhere between LEO and GEO.
    • It is similar to LEO in that it also does not need to take specific paths around Earth, and it is used by a variety of satellites with many different applications.
    • It is very commonly used by navigation satellites, like the European Galileo system of Europe.
    • It uses a constellation of multiple satellites to provide coverage across large parts of the world all at once.

    [4] Polar Orbit

    • Satellites in polar orbits usually travel past Earth from north to south rather than from west to east, passing roughly over Earth’s poles.
    • Satellites in a polar orbit do not have to pass the North and South Pole precisely; even a deviation within 20 to 30 degrees is still classed as a polar orbit.
    • Polar orbits are a type of low Earth orbit, as they are at low altitudes between 200 to 1000 km.

    [5] Sun-synchronous orbit (SSO)

    • SSO is a particular kind of polar orbit. Satellites in SSO, travelling over the polar regions, are synchronous with the Sun.
    • This means they are synchronised to always be in the same ‘fixed’ position relative to the Sun.
    • This means that the satellite always visits the same spot at the same local time.
    • Often, satellites in SSO are synchronised so that they are in constant dawn or dusk – this is because by constantly riding a sunset or sunrise, they will never have the Sun at an angle where the Earth shadows them.
    • A satellite in a Sun-synchronous orbit would usually be at an altitude of between 600 to 800 km. At 800 km, it will be travelling at a speed of approximately 7.5 km per second.

    [6] Transfer orbits and geostationary transfer orbit (GTO)

    • Transfer orbits are a special kind of orbit used to get from one orbit to another.
    • Often, the satellites are instead placed on a transfer orbit: an orbit where, by using relatively little energy from built-in motors, the satellite or spacecraft can move from one orbit to another.
    • This allows a satellite to reach, for example, a high-altitude orbit like GEO without actually needing the launch vehicle.
    • Reaching GEO in this way is an example of one of the most common transfer orbits, called the geostationary transfer orbit (GTO).

     

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  • Africa’s Great Green Wall (GGW) Program

    Africa’s Great Green Wall (GGW) program to combat desertification in the Sahel region is an important contribution towards combating climate change, Food and Agriculture Organization (FAO) said in a study.

    Note the countries swept by the GGW project on the African map.

    About GGW Program

    • The Great Green Wall project is conceived by 11 countries located along the southern border of the Sahara and their international partners, is aimed at limiting the desertification of the Sahel zone.
    • Led by the African Union, the initiative aims to transform the lives of millions of people by creating a mosaic of green and productive landscapes across North Africa.
    • The initial idea of the GGW was to develop a line of trees from east to the west bordering the Saharan Desert.
    • Its vision has evolved into that of a mosaic of interventions addressing the challenges facing the people in the Sahel and the Sahara.

    Why was such project incepted?

    • The project is a response to the combined effect of natural resources degradation and drought in rural areas.
    • It aimed to restore 100 million hectares of degraded land by 2030; only four million hectares had been restored between 2007 and 2019.
    • It is a partnership that supports communities working towards sustainable management and use of forests, rangelands and other natural resources.
    • It seeks to help communities mitigate and adapt to climate change, as well as improve food security.

     

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  • UNCITRAL Model for Cross Border Insolvency

    The Ministry of Corporate Affairs (MCA) has published a draft framework for cross-border insolvency proceedings based on the UNCITRAL (United Nations Commission on International Trade Law) model under the Insolvency and Bankruptcy Code.

    About Insolvency and Bankruptcy Code (IBC)

    • The IBC, 2016 is the bankruptcy law of India that seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy.
    • It is a one-stop solution for resolving insolvencies which previously was a long process that did not offer an economically viable arrangement.
    • The code aims to protect the interests of small investors and make the process of doing business less cumbersome.

    Cross border insolvency proceedings

    • Cross-border insolvency proceedings are relevant for the resolution of distressed companies with assets and liabilities across multiple jurisdictions.
    • A framework for cross-border insolvency proceedings allows for the location of such a company’s foreign assets, the identification of creditors and their claims.
    • This helps establishing payment towards claims as well as a process for coordination between courts in different countries.

    Current status of foreign stakeholders and courts in other jurisdictions under IBC

    • While foreign creditors can make claims against a domestic company, the IBC currently does not allow for automatic recognition of any insolvency proceedings in other countries.
    • Current provisions under the IBC do not allow Indian courts to address the issue of foreign assets of a company being subjected to parallel insolvency proceedings in other jurisdictions.

    The UNCITRAL model

    • The UNCITRAL model is the most widely accepted legal framework to deal with cross-border insolvency issues.
    • It has been adopted by 49 countries, including the UK, the US, South Africa, South Korea and Singapore.
    • The law allows automatic recognition of foreign proceedings and rulings given by courts in cases where the foreign jurisdiction is adjudged.
    • Recognition of foreign proceedings and reliefs is left to the discretion of domestic courts when foreign proceedings are non-main proceedings.
    • The model law deals with four major principles of cross-border insolvency:
        • Direct access to foreign insolvency professionals and foreign creditors to participate in or commence domestic insolvency proceedings against a defaulting debtor.
        • Recognition of foreign proceedings & provision of remedies.
        • Cooperation between domestic and foreign courts & domestic and foreign insolvency practitioners.
        • Coordination between two or more concurrent insolvency proceedings in different countries. The main proceeding is determined by the concept of Centre of Main Interest (COMI).
          • The COMI for a company is determined based on where the company conducts its business on a regular basis and the location of its registered office.
      • It is designed to assist States in reforming and modernizing their laws on arbitral procedure so as to take into account the particular features and needs of international commercial arbitration.

    Issues with Indian framework

    • The framework for cross-border insolvency adopted in India may require reciprocity from any country which seeks to have its insolvency proceedings recognized by Indian courts.
    • This would allow Indian proceedings for foreign corporate debtors to be recognized in foreign jurisdictions.

    Back2Basics: UNCITRAL

    • It is an affiliate organization to the UN made up of business and legal professionals.
    • This group develops model standards and procedures for dealing with issues affecting international business.
    • Perhaps most notably, UNCITRAL promulgated the Convention on International Sale of Goods (CISG).
    • The CISG is a model law commonly used as the governing provisions in contracts between parties from different nations.

     

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  • What is Omicron Variant?

    A new lineage of SARS-CoV-2 has been designated as a Variant of Concern (VoC) by the World Health Organization (WHO) and has been named Omicron.

    Behind the name: Omicron

    • The WHO has been using Greek letters to refer to the most widely prevalent coronavirus variants, which otherwise carry long scientific names.
    • It had already used 12 letters of the Greek alphabet before the newest variant emerged in South Africa this week.
    • After Mu, the 12th named after a Greek letter, WHO selected the name Omicron, instead of Nu or Xi, the two letters between Mu and Omicron.
    • The WHO said Nu could have been confused with the word ‘new’ while Xi was not picked up following a convention.

    Why is the Omicron variant interesting?

    • The Omicron variant is interesting due to the fact that it has a large number of mutations compared to other prevalent variants circulating across the world.
    • This includes 32 mutations in the spike protein.
    • Many of these mutations lie in the receptor-binding domain of the spike protein, a key part of the protein required for binding to the human receptor proteins for entry into the cell.
    • It can thus play an important role in recognition by antibodies generated due to a previous infection or by vaccines.

    What do spike mutations do?

    • Many of the mutations in the spike protein have been previously suggested to cause resistance to antibodies as well as increased transmission.
    • Thus, there is a possibility that this variant could be more likely to re-infect people who have developed immunity against previous variants of the virus.
    • The behavior of the virus is not yet accurately predictable based on the evidence on individual mutations.

    Does the variant result in vaccine breakthrough infections?

    • Some of the initial individuals identified to be infected with the variant have been vaccinated for COVID-19 and therefore the variant can indeed cause vaccine breakthrough infections.
    • This should not be of concern, since the prevalent variants of concern including Delta have been shown to cause breakthrough infections.
    • Whether the variant causes more breakthrough infections than Delta is not currently known.

    How can we be prepared for the variant?

    • Enhanced surveillance and genome sequencing efforts are essential to detect and track the prevalence of the Omicron variant.
    • Rapid sharing of genome sequences of the virus and the epidemiological data linked with it to publicly available databases will help in developing a better understanding of the variant.
    • Existing public health and social measures need to be strengthened to control and prevent transmission.
    • Enhancing vaccination coverage across different regions along with access to testing, therapeutics and support will be essential for combating the new variant.
    • Equitable access to vaccines would be key to controlling the Omicron variant, and slowing down the emergence of any future variants.

     

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  • Jaitapur Nuclear Power Project

    If built on time, Jaitapur Project in Maharashtra would be the largest nuclear power generating station in the world by net generation capacity, at 9,900 MW.

    Jaitapur Nuclear Power Project

    • Jaitapur Project is a proposed nuclear power plant in India.
    • The power project is proposed by Nuclear Power Corporation of India (NPCIL) and would be built at Madban village of Ratnagiri district in Maharashtra.
    • It is being built with technical cooperation from France.

    Project description

    • It is proposed to construct 6 European Pressurized Reactors designed and developed by Framatome (former Areva) of France, each of 1650 MW, thus totaling 9900 MW.
    • These are the third generation pressurized water reactors (PWR).
    • The cost of building the plant is about ₹20 crore (US$2.7 million) per MW electric power compared with ₹5 crore (US$660,000) per MW electric power for a coal power station.
    • A consortium of French financial institutions will finance this project as a loan. Both French and Indian government will give sovereign guarantee for this loan.

    Issues with the project

    (I) Liability for nuclear damage

    • The lack of clarity on the Civil Liability for Nuclear Damage Bill 2010 passed in Indian Parliament in August 2010 is a hurdle in finalizing deal.
    • This Civil Liability for Nuclear Damage Bill 2010 has a clause that deals with the legal binding of the culpable groups in case of a nuclear accident.
    • It allows only the operator (NPCIL) to sue the manufacturers and suppliers. Victims will not be able to sue anyone.

    (II) Clearance issue

    • Environmental effects of nuclear power and geological issues have been raised by anti-nuclear activists of India against this power project.
    • Even though the Maharashtra state govt completed land acquisition in 2010, only few people had accepted compensation cheques.

    (III) Seismicity of the area

    • Since Jaitapur is a seismically sensitive area, the danger of an earthquake has been foremost on the minds of people.
    • According to the Earthquake hazard zoning of India, Jaitapur comes under Zone III. This zone is called the moderate Risk Zone and covers areas liable to MSK VIII.
    • The presence of two major creeks on the proposed site has been ignored while clearing the site.

    (IV) Nuclear waste disposal

    • It is not clear where the nuclear waste from the site will be shipped for recycling or removed for disposal.
    • The plant is estimated to generate 300 tonnes of used nuclear fuel each year.

     

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  • Emulating Amul’s success across other agricultural commodities

    Context

    Many wish for legendary “Milk Man of India” Verghese Kurien’s presence in our midst today as the conflict between the Central government and the farming community on the issue of the farm laws appears to be still unresolved.

    Adopting cooperative model

    • Kurien won the farmers over with his professional integrity and his vision of a central role for farmers in India’s journey of development.
    • It is on that foundation that Kurien went on to design his idea of Amul as a co-operative.
    • He turned it over the years into a global brand, and later launched the White Revolution that would make India the largest milk producing nation in the world.
    • Central to Kurien’s vision was the co-operative model of business development.
    • Kurien’s fascination for the co-operative model was also influenced by Gandhian thinking on poverty alleviation and social transformation.
    • Kurien could borrow from the ideas and the practices of the corporate world.
    • In areas such as innovations in marketing and management, branding and technology, the private sector excels and sets benchmarks for businesses across the world to follow and adopt.
    • Innovations and evolving technologies: At the same time, Amul was steadily emerging as a laboratory, developing significant innovations and evolving technologies of its own, and these have strengthened its competitive power against multinational corporations.

    Challenges facing cooperative movements in India

    • Amul’s success has not been the catalyst for similar movements across other agricultural commodities in India.
    • Bypassing digital revolution: India’s digital revolution has bypassed the agriculture sector.
    • The cooperative movement in India is in a state of flux.
    • Decline of cooperative movement: India has suffered due to lack of professional management, adequate finance and poor adoption of technology.

    Conclusion

    This is truly a moment to reflect on Verghese Kurien’s remarkable legacy and the unfinished task he has left behind.

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  • Is crypto mania more a symptom than a cause?

    Context

    The draft legislation on crypto currency being introduced in Parliament and the stance of the RBI suggest that consideration is being given to banning crypto currencies in India.

    What fascination with crypto reveals about our society?

    • It is about faith in that value is largely a matter of belief.
    • It is about politics because money is always about the allocation of power.
    • The money itself may not be material, but it is still embedded in a materiality.
    • The fact that money is subject to politics is actually the advantage of money.
    • It allows a modicum of collective control over our future, and allows distributive questions to be posed.
    • It is mania because the alchemy of creating something out of nothing is always deeply alluring.
    • Cheap money: The global economy is awash with cheap money.
    • Seeking return: In an Indian context small savers are desperate for return.
    • In this context it is easy for the powerful to misallocate money and the small saver to express desperation by speculation.

    Background

    • Faced with the inflation of the 1970s, thinkers like Friedrich Hayek theorised about reasserting the dominance of private currencies, protected from the state.
    • Crypto currencies are a fascinating technological innovation.
    • Part of their initial attraction was that they promised a new governance order. 
    • It is at the confluence of faith, politics, and psychological mania.
    • Solving the problem of trust: This project crucially depended on solving the problem of “trust” on which every currency depends.
    • Crypto seemed to solve that problem, with its decentralised architecture and community and self-verification protocols.

    How cryptocurrency poses challenges to the state?

    • No state was going to let go of its power to assert control over the monetary system.
    • Significance of fiat money: The sustenance of state-sponsored fiat money is one of the great achievements of modern state formation and the foundation of its power and legitimacy.
    • Cryptocurrency requires material infrastructure: There was a delusion, as if crypto is conjured out of thin air: It actually requires substantial material infrastructure, which a state could always control.
    • States can shut down mining as China has done.

    Way forward

    • We allow people to invest in all kinds of things. Why ban this, especially now that so many investors are in it?
    • Analyse the risk to the financial system: The answer to this question depends on how much risk the existence of crypto assets pose to the stability of the rest of the financial system.
    • Insulate financial system: One answer is if you can insulate the financial system from the gyrations of crypto markets there are few systemic risks.
    • This is why it was a good idea of the RBI to prohibit the entanglement of financial institutions with this market.
    • Instead of just focussing on issues of fraud, money laundering, and private risks, the RBI’s case would be strengthened if it spelled out the systemic risks that crypto might pose to the stability of the real economy.
    • Avoid ban with exception scenario: For political economy reasons, the RBI should avoid a scenario where it bans but then carves out exceptions.
    • Ensuring that trade does not go offshore: The second thing is that if it somehow allows Indians to invest then it has to ensure that trade does not go offshore. 
    • Not fully banning and allowing it offshore will be the worst of both worlds.

    Challenges in insulating the crypto market

    • In practice the insulation of crypto markets will be difficult to achieve.
    • Political economy: The first reason is political economy. Once you have a large number of investors, and some influential ones, they will be a vested interest in their own right, potentially demanding the socialisation or mitigation of losses.
    • Impact of volume: The second reason is that it is difficult to pretend that a major new class of assets, especially if volumes grow, does not have systemic effects on the rest of the economy.

    Consider the question “What are the risks and advantages provided by the cryptocurrencies? Suggest the approach India should adopt in dealing with cryptocurrencies.”

    Conclusion

    As the RBI makes the case for banning crypto, we also need to ask, why it is alluring in the first place. What does this mania reveal about our politics and economics?

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  • NITI Aayog’s Multidimensional Poverty Index (MPI)

    The Government think-tank NITI Aayog has released the National Multidimensional Poverty Index (MPI).

    Multidimensional Poverty Index (MPI)

    • This baseline report of India’s first-ever national MPI measure is based on the reference period of 2015-16 of the National Family Health Survey (NFHS)- 4.
    • It uses the globally accepted and robust methodology developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP).
    • It captures multiple and simultaneous deprivations faced by households.

    Parameters used

    • The NMPI is calculated using 12 indicators — nutrition, child and adolescent mortality, antenatal care, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets and bank account,
    • They have been grouped under three dimensions namely, health, education and standard of living.

    Why NFHS-4?

    • Data collected during the NFHS-4 (2015-2016) corresponds to the period before the full roll out of new governments’ flagship schemes.
    • Hence it serves as a useful source for measuring the situation at baseline i.e. before large-scale rollout of nationally important schemes.

    How is the data used?

    • The national MPI 2021 is calculated using the household microdata collected at the unit-level for the NFHS-4 that is used to derive the baseline multidimensional poverty.
    • Further, the country’s progress would be measured using this baseline in the NFHS-5, for which the data was collected between 2019 and 2020.
    • The progress of the country with respect to this baseline will be measured using the NFHS-5 data collected in 2019-20.

    Key highlights NMPI

    • As per the index, 51.91% of the population in Bihar is poor, followed by Jharkhand (42.16%), Uttar Pradesh (37.79%), Madhya Pradesh (36.65%) and Meghalaya (32.67%).
    • On the other hand, Kerala registered lowest population poverty levels (0.71%), followed by Puducherry (1.72%), Lakshadweep (1.82%), Goa (3.76%) and Sikkim (3.82%).
    • Other States and UTs where less than 10% of the population are poor include Tamil Nadu (4.89%), Andaman & Nicobar Islands (4.30%), Delhi (4.79%), Punjab (5.59%), Himachal Pradesh (7.62%) and Mizoram (9.8%).

     

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