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GS Paper: GS3

  • [pib] GoI Floating Rate Bonds

    The Government of India has announced the Sale (Re-issue) of Floating Rate Bonds, 2028’.

    What are Bonds?

    • Bonds are investment securities where an investor lends money to a company or a government for a set period of time, in exchange for regular interest payments.
    • Generally, bonds come with a fixed coupon or interest rate. For example, you can buy a bond of Rs 10,000 with a coupon rate of 5%.
    • Once the bond reaches maturity, the bond issuer returns the investor’s money.
    • Fixed income is a term often used to describe bonds, since your investment earns fixed payments over the life of the bond.

    Why are bonds launched?

    • Companies sell bonds to finance ongoing operations, new projects or acquisitions.
    • Governments sell bonds for funding purposes, and also to supplement revenue from taxes.

    What are Floating Rate Bonds?

    • A floating rate bond is a debt instrument that does not have a fixed coupon rate, but its interest rate fluctuates based on the benchmark the bond is drawn.
    • Benchmarks are market instruments that influence the overall economy.
    • For example, repo rate or reverse repo rate can be set as benchmarks for a floating rate bond.

    How do floating rate bonds work?

    • Floating rate bonds make up a significant part of the Indian bond market and are majorly issued by the government.
    • For example, the RBI issued a floating rate bond in 2020 with interest payable every six months. After six months, the interest rate is re-fixed by the RBI.

     

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  • Nutritional security and climate-friendly agriculture for Punjab

    Context

    As per the latest Situation Assessment Survey (SAS) of agricultural households conducted by the National Statistical Office (NSO), an average Indian farmer earned Rs 10,218 per month in 2018-19 (July-June).

    SAS analysis: Variation across the states and cause of concern for Punjab

    • Across states, the highest income was received by a farming household in Meghalaya (Rs 29,348) followed by Punjab (Rs 26,701), Haryana (Rs 22,841), Arunachal Pradesh (19,225) and Jammu and Kashmir (Rs 18,918).
    • While the lowest income levels were in West Bengal (Rs 6,762), Odisha (Rs 5,112) and Jharkhand (Rs 4,895).
    • But this is not a fair comparison as holding sizes vary widely across states.
    • After normalising these incomes of agri-households by their holding sizes, as in the SAS, Punjab’s ranking on per hectare income falls from 2nd to 11th and Haryana goes down from 3rd to 15th (see figure).
    • The states that would do well on this score are Jammu and Kashmir, Kerala, Meghalaya and Arunachal Pradesh.
    • In these states, people earn their income from cultivating fruits and vegetables, spices, and livestock.
    • These are high value in nature, not linked to MSPs, and market and demand-driven.
    • As per the SAS, the average operated area per holding for Punjab is 1.44 ha (we have used that in the figure), but the Census gives a much higher value of 3.62 ha of average operational holding.
    •  If we normalise incomes of agri-households using Census values of average holding sizes, Punjab’s rank would go further down to 21st (household monthly income Rs 7,376) out of 28 states.

    How can farmers in Punjab and Haryana augment their incomes with more sustainable agriculture?

    1) Swith from paddy to maize

    • Punjab’s former Chief Minister Amarinder Singh had approached the Centre with an idea to create a fund of around Rs 25,000 crore to help farmers switch from paddy to maize.
    • The Centre should give this idea a serious thought with the following modifications:
    • One, the fund should be under a five-year plan to shift at least a million hectares of paddy area (out of a total of 3.1 million hectares of paddy area in Punjab) to maize.
    • Two, the corpus should have equal contributions from the Centre and state.
    • Three, since Punjab wants that farmers be given MSP for maize, an agency, the Maize Corporation of Punjab (MCP), should be created to buy maize from farmers at MSP.
    • Four, this agency should enter into contracts with ethanol companies, and much of this maize can be used to produce ethanol as the poultry and starch industries will not be able to absorb this surplus in maize once a million hectares of paddy area shifts to maize.
    • Fifth, maize productivity must be as competitive as that of paddy in Punjab and the best seeds should be used for that purpose.
    • This is to ensure that ethanol from maize is produced in a globally competitive manner.
    • The GoI’s policy for 20 per cent blending of ethanol in petrol should come in handy for this purpose.

    2) Diversification

    • Other parts of the diversification strategy have to be along the lines of increasing the area under fruits and vegetables, and a more focused policy to build efficient value chains in not just fruits and vegetables but also livestock and fisheries.
    • They are more nutritious and the SAS data shows that their profitability is much higher in these enterprises than in crop cultivation, especially cereals.
    • The sector needs to be backed by proper processing, grading and packaging infrastructure to tap its full potential.

    Benefits of switching to maize from paddy

    • Punjab will arrest its depleting water table as maize needs less than one-fifth the water that paddy does for irrigation.
    • Also, Punjab will save much on the power subsidy to agriculture, which was budgeted at Rs 8,275 crore in the FY2020-21 budget, as paddy irrigation consumes much of the power subsidy.
    • This saving subsidy resulting from the switch from paddy to maize can be used to fund a part of the state’s contribution to the Maize Corporation of Punjab.
    • This could result in a win-win situation for all — farmers, the Government of Punjab and the country — as there will be lesser methane emissions and less stubble burning.
    • Moreover, ethanol will also reduce GHG emissions in vehicular pollution.

    Consider the question “Switching from paddy cultivation to maize can help the Punjab farmers deal with the several issues. In light of this, explain the issues with paddy cultivation and suggest the way forward.”

    Conclusion

    Their income on a per hectare basis needs to increase more sustainably, protecting the state’s land, water and air from further degradation, and producing more nutritious food. Punjab can then shine again on the nutritional security front with sustainable and climate-resilient agriculture.

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  • Prakritik Kheti Khushhal Yojana (PK3Y)

    Women farmers in the hill State of Himachal Pradesh are gradually turning to non-chemical, low cost “natural farming”, under the Prakritik Kheti Khushhal Yojana (PK3Y).

    Prakritik Kheti Khushhal Yojana

    • Launched in 2018, the State’s PK3Y is promoting the climate resilient Subhash Palekar Natural Farming (SPNF), also called ‘Zero Budget Natural Farming’.
    • Over 1.5 lakh farmers have been trained in natural farming in the State so far, with substantial numbers of women participants.

    About Zero Budget Natural Farming (ZBNF)?

    • ZBNF is a set of farming methods, and also a grassroots peasant movement, which has spread to various states in India.
    • Subhash Palekar perfected it during the 1990s at his farm in Amravati district in Maharashtra’s drought-prone Vidarbha region.
    • According to the “zero budget” concept, farmers won’t have to spend any money on fertilisers and other agricultural inputs.
    • Over 98% of the nutrients that crops require — carbon dioxide, nitrogen, water, solar energy — are already present in nature.
    • The remaining 1.5-2% are taken from the soil, after microorganisms convert them from “non-

    Four Wheels of ZBNF

    The “four wheels” of ZBNF are ‘Jiwamrita’, ‘Bijamrita’, ‘Mulching’ and ‘Waaphasa’.

    • Jiwamrita is a fermented mixture of cow dung and urine (of desi breeds), jaggery, pulses flour, water and soil from the farm bund.
    • This isn’t a fertiliser, but just a source of some 500 crore micro-organisms that can convert all the necessary “non-available” nutrients into “available” form.
    • Bijamrita is a mix of desi cow dung and urine, water, bund soil and lime that is used as a seed treatment solution prior to sowing.
    • Mulching, or covering the plants with a layer of dried straw or fallen leaves, is meant to conserve soil moisture and keep the temperature around the roots at 25-32 degrees Celsius, which allows the microorganisms to do their job.
    • Waaphasa, or providing water to maintain the required moisture-air balance, also achieves the same objective.

    Astra’s of ZBNF against pest attacks

    • ZBNF advocates the use of special ‘Agniastra’, ‘Bramhastra’ and ‘Neemastra’ concoctions.
    • They are based on cow urine and dung, plus pulp from leaves of neem, white datura, papaya, guava and pomegranates — for controlling pest and disease attacks.

    Is it organic farming?

    • ZBNF uses farmyard manure or vermicompost.

    However, not all farmers are convinced about ZBNF. Why?

    • Cost of labour: The cost of labour for collection of dung and urine, apart from the other inputs used in preparation of Jiwamrita, Neemastra or Bramhastra is quit higher.
    • Bovine cost: Keeping cows is also a cost that has to be accounted for. Farmers cannot afford to keep desi cows that yield very little milk.
    • Vulnerability to pest attacks:  ZBNF is scarcely practiced.  The crop grown would be vulnerable to attacks by insects and pests have already become pest-immune.

     

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  • What is Hybrid Immunity?

    A study has shown that a combination of natural infection with a single dose of vaccine provides greater immunity than either natural infection without vaccination or full vaccination in individuals.

    What is the new study?

    • People without prior infection but fully vaccinated with the Pfizer or AstraZeneca vaccine showed a decline in neutralising antibodies over a period of three to seven months.
    • But the decline was much less in vaccinated people with prior infection.
    • People with hybrid immunity had a higher and more durable neutralising antibody response.
    • The hybrid immunity offers stronger protection than just infection or full vaccination alone.

    What is Hybrid Immunity?

    • It is natural immunity from an infection combined with the immunity provided by the vaccine.
    • The immunological advantage from hybrid immunity arises mostly from memory B cells.

    What are memory B cells?

    • In immunology, a memory B cell (MBC) is a type of B lymphocyte that forms part of the adaptive immune system.
    • B lymphocytes are the cells of the immune system that make antibodies to invade pathogens like viruses.
    • They form memory cells that remember the same pathogen for faster antibody production in future infections.

    How do they assist hybrid immunity?

    • While the bulk of antibodies after infection or vaccination decline after a short while, the memory B cells get triggered on subsequent infection or vaccination.
    • The memory B cells triggered by infection and those triggered by vaccination have different responses to viruses.
    • Infection and vaccination expose the spike protein to the immune system in vastly different ways.
    • After full vaccination, antibodies produced by natural infection continued to grow in potency and their breadth against variants for a year after infection.
    • Unlike after vaccination, the memory B cells formed after natural infection are more likely to make antibodies that block immune-evading variants.

     

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  • [pib] India’s First Banni Buffalo IVF Calf Born

    With the birth of first IVF calf of a Buffalo breed namely Banni in the country, India’s Ovum Pick-Up (OPU) – IVF work has reached to next level.

    Banni Buffalo

    • Banni buffaloes are also known as “Kutchi” or “Kundi”.
    • The breeding tract includes the Banni area of Kutchchh district of Gujarat.
    • The breed is maintained mostly by Maldharis under locally adapted typical extensive production system in its breeding tract.

    What makes them unique?

    • Banni buffaloes are trained to graze on Banni grassland during night and brought to the villages in the morning for milking.
    • This traditional system of buffalo rearing has been adapted to avoid the heat stress and high temperature of the day.
    • It has unique qualities of adaptation such as the ability to survive water scarcity conditions, to cover long distances during periods of drought and disease resistance.

    Indigenous buffalo breeds in India

    S. No. Breed Breeding state
    1 Banni Gujarat
    2 Bargur Tamil Nadu
    3 Bhadawari Uttar Pradesh and Madhya Pradesh
    4 Chhattisgarhi Chhattisgarh
    5 Chilika Odisha
    6 Gojri Himachal Pradesh and Punjab
    7 Jaffarabadi Gujarat
    8 Kalahandi Odisha
    9 Luit (Swamp) Assam
    10 Marathwadi Maharashtra
    11 Mehsana Gujarat
    12 Murrah Haryana and Delhi
    13 Nagpuri Maharashtra
    14 Nili Ravi Punjab
    15 Pandharpuri Maharashtra
    16 Surti Gujarat
    17 Toda Tamil Nadu

     

     

     

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    Back2Basics: In-vitro fertilization (IVF)

    • IVF is a type of assisted reproductive technology used for infertility treatment and gestational surrogacy.
    • A fertilised egg may be implanted into a surrogate’s uterus, and the resulting child is genetically unrelated to the surrogate.
    • Some countries have banned or otherwise regulate the availability of IVF treatment, giving rise to fertility tourism.
    • Restrictions on the availability of IVF include costs and age, in order for a woman to carry a healthy pregnancy to term.
    • IVF is generally not used until less invasive or expensive options have failed or been determined unlikely to work.

    IVF process

    • IVF is a process of fertilization where an egg is combined with sperm outside the body, in vitro (“in glass”).
    • The process involves monitoring and stimulating a female ovulatory process, removing an ovum or ova (egg or eggs) from the female ovaries and letting sperm fertilise them in a liquid in a laboratory.
    • After the fertilised egg (zygote) undergoes embryo culture for 2–6 days, it is implanted in the same or another female uterus, with the intention of establishing a successful pregnancy.

     

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  • [pib] Amended Technology Up-gradation Fund Scheme

    Union Minister of Textiles has reviewed the Amended Technology Up-gradation Fund Scheme (ATUFS) to ease of doing business, bolstering exports & fuelling employment.

    What is ATUFS?

    • The Ministry of Textiles had introduced Technology Upgradation Fund Scheme (TUFS) in 1999.
    • It is a credit linked subsidy scheme intended for modernization and technology up-gradation of the Indian textile industry.
    • It aims at promoting ease of doing business, generating employment and promoting exports. Since then, the scheme has been implemented in different versions.
    • The ongoing ATUFS has been approved in 2016 and implemented through web based iTUFS platform.
    • Capital Investment Subsidy is provided to benchmarked machinery installed by the industry after physical verification.

     

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  • A clean energy transition plan for India

    Context

    India has a long way to go in providing electricity security to its people since its per capita electricity consumption is still only a third of the global average.

    Ensuring energy security and role of coal

    • Energy security warrants the uninterrupted supply of energy at affordable prices.
    •  Thanks to the Electricity Act of 2003, the installed coal-fired thermal power plant (TPP) generation capacity in India more than doubled from 94 GW to 192 GW between March 2011 and 2017.
    • This sharp increase in the installed capacity has enabled the government to increase per capita electricity consumption by 37% while reducing peak demand deficit from 9.8% (2010-11) to 1.6% (2016-17). 
    • TPPs contributed 71% of the 1,382 billion units (BU) of electricity generated by utilities in India during FY 2020-21 though they accounted for only 55% of the total installed generation capacity of 382 GW (as of March 2021).
    • Coal, therefore, plays a vital role in India’s ongoing efforts to achieve Sustainable Development Goal 7, which is “to ensure access to affordable, reliable, sustainable and modern energy for all”.

    Renewable energy utilisation issue and implications for consumers

    • While variable renewable energy (VRE) sources (primarily, wind and solar) account for 24.7% of the total installed generation capacity, as of March 2021, they contributed 10.7% of the electricity generated by utilities during FY 2020-21.
    • However, the ramp-up of VRE generation capacity without commensurate growth in electricity demand has resulted in lower utilisation of TPPs whose fixed costs must be paid by the distribution companies (DISCOMs) and passed through to the final consumer.
    • The current level of VRE in the national power grid is increasing the cost of power procurement for DISCOMs, leading to tariff increases for electricity consumers. 
    • Therefore, India must implement a plan to increase energy efficiency and reduce the emissions of carbon dioxide (CO2) and airborne pollutants from TPPs without making power unaffordable to industries that need low-cost 24×7 power to compete in the global market.

    Way forward: time-bound transition plan

    • Phasing out: The plan should involve the progressive retirement of TPPs(unit size 210 MW and below) based on key performance parameters such as efficiency, specific coal consumption, technological obsolescence, and age.
    • Increasing utilisation: The resulting shortfall in baseload electricity generation can be made up by increasing the utilisation of existing High-Efficiency-Low-Emission (HELE) TPPs that are currently under-utilised to accommodate VRE and commissioning the 47 government-owned TPPs.
    • In addition, the Nuclear Power Corporation of India Limited (NPCIL) is also constructing 11 nuclear power plants with a total generation capacity of 8,700 MW that will supply 24×7 power without any CO2 emissions.
    • The combined thermal (220 GW) and nuclear (15 GW) capacity of 235 GW can meet the baseload requirement (80% of peak demand) during the evening peak in FY 2029-30 without expensive battery storage.
    • The optimal utilisation of existing and under-construction HELE TPPs with faster-ramping capabilities and lower technical minimums also facilitates VRE integration.
    • Since HELE TPPs minimise emissions of particulate matter (PM), SO2, and NO2, the transition plan offers operational, economic, and environmental benefits including avoidance of sustenance Capex and FGD costs in the 211 obsolete TPPs to be retired besides savings in specific coal consumption and water requirement leading to reductions in electricity tariffs and PM pollution.

    Conclusion

    The implementation of transition plan will enable India to safeguard its energy security and ensure efficient grid operations with lower water consumption, PM pollution, and CO2 emissions.

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  • India’s gig economy

    Since the pandemic, there is a growing concern about the pay-out and job-securities of the delivery persons and other gig workers of the e-commerce companies.

    E-com boom in India

    • E-commerce in India is a nascent industry that is probably less than 13 years old.
    • In this short period, it has captured the collective imagination of the nation.
    • The covid-19 crisis has accelerated its adoption, and even die-hard fans of shopping at a physical store have switched to shopping online.

    Various issues faced by the gig workers

    • Harsh working conditions
    • Quality of work and the temporary nature of engagement
    • Absence of a social security net
    • Long hours
    • Delayed pay-outs
    • Pressure to maximize speed of delivery (at the risk of road accidents)

    E-coms under scanner

    The bigger an industry gets, and the more successful it is perceived to be, the more responsible and thoughtful it needs to be in everything it does.

    • Fairness in employment: Some of the concerns are fair and call for introspection on the part of e-commerce companies.
    • Premature regulation: There is a rising demand for regulation of the gig economy created by them.

    Significance of e-commerce sector

    Anyone complaining about the quality of jobs being created by the e-commerce industry probably needs to spend some time understanding the history of job creation in India.

    An attractive sector for India’s ‘jobs problem’

    • Ample workforce: India is a demographically youthful nation, and every year between 17 and 20 million people look for jobs.
    • Attractive sector: This includes around 5 million people who are abandoning highly exploitative and less remunerative farm jobs every year to find employment in other sectors, mostly in the nearest urban districts.
    • Limited success of service sector: The IT and business process outsourcing industry has less than 200,000 jobs a year during its 25 years of existence. This is just a minuscule 1% of the total number of jobs that need to be created.

    Data justifying un-steady flow of income

    • According to CSO, only about 17% of India’s workers are regular wage earners and less than 23% of Indian households have a regular wage earner.
    • In other words, 77% of our households did not have a steady flow of income.
    • Self-employed (46%) and casual labour (33%) together account for nearly 80% of the workforce and claimed to earn less than ₹10,000 per month.
    • These are the realities that cannot be ignored.

    E-commerce: A game-changer

    • The new-age platforms have done is nothing short of a miracle both in terms of creating jobs as well as paying a fair wage.
    • It can be well established that it has provided a better remedy for unemployment in India.

    Why do e-marketplaces matter?

    • Failure of Skills: Neither skill nor knowledge is enough to ensure one generates income.
    • Technology dependency and free market: Efficient marketplace which are enabled by technology, matters.
    • Common platform: A startup such as the Urban Company is an example of a technology-powered marketplace for common services such as plumbing, carpentry, beauty, and house-cleaning, among others.
    • Single marketplace: They brought consumers and suppliers of services (based on skills) on a common platform and made the whole process of matching demand and supply pretty seamless.

    Benefits offered

    • Decent pay: A consumer of a service is willing to pay more for better quality of service if there is a consistent and reliable process of evaluating the capability of service providers.
    • Self-employment: Most of these workers are always self-employed and even with these platforms, they operate in a gig mode which isn’t structurally different.
    • Better livelihood: Youth from rural India had been joining the Ola and Uber platforms in large numbers, many of whom were either unemployed or heavily under-employed.
    • No skill-compulsion: When skilling is voluntary and driven by a free market mechanism, the outcomes are magical.
    • Industrializing the services: These platforms did ‘industrialize’ the services—industrialization allowed effortless consumption and created structured mechanisms to scale services and service capabilities.
    • New consumption pattern: The technology enabled markets resulted in ‘new consumption’ which, in turn, led to creation of more goods and service providers.

    Way forward

    • As far as the e-commerce industry is concerned, there are several obvious lessons that can contribute towards its growth, going ahead.
    • Also it is not fair to paint the entire industry as exploitative or be unduly critical of the gig model which is actually a very good model.
    • Many of the gig workers themselves would be reluctant to take up full time and fixed salaried jobs. Pushing for premature regulation could be lethal.
    • And finally, it is unrealistic to expect the e-commerce industry to create jobs that are probably as well paying like the IT industry.

    Conclusion

    • Creating high-paying jobs was never easy and will never be easy.
    • Nor is it realistic that everyone, or even a majority of the 20 million, will be employed in high-paying jobs.

     

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  • Global Agricultural Productivity Report, 2021

    Global agricultural productivity (GAP) is not growing as fast as the demand for food, amid the impact of climate change, according to a new report.

    GAP Report

    • The GAP Report is released by Virginia Tech’s College of Agriculture and Life Sciences.
    • It urges the acceleration of productivity growth from smallholders to large-scale farmers to meet consumers’ needs and address current and future threats to human and environmental well-being.

    Key indicator: Total factor productivity (TFP)

    • In agriculture, productivity is measured as Total Factor Productivity or TFP.
    • An increase in TFP growth indicates that more crops, livestock, and aquaculture products were produced with the same amount (or less) land, labor, fertilizer, machinery, feed, and livestock.
    • TFP grows when producers increase output using improved technologies and practices, such as advanced seed varieties, precision mechanization, efficient nutrient and water management techniques, and improved animal care practices.
    • Using agricultural inputs efficiently to generate more output reduces agriculture’s environmental impact and lowers costs for producers and consumers.

    Highlights of the report

    • Total factor productivity (TFP) is growing at an annual rate of 1.36 per cent (2020-2019).
    • This is below the annual target of 1.73 per cent growth to sustainably meet the needs of consumers for food and bioenergy in 2050.
    • Climate change has already reduced productivity growth globally by 21 per cent since 1961, the report said.
    • In the drier regions of Africa and Latin America, climate change has slowed productivity growth by as much as 34 per cent.
    • The report noted that middle-income countries including India, China, Brazil and erstwhile Soviet republics continued to have strong TFP growth rates.

    Agricultural productivity in India

    • India has seen strong TFP and output growth this century.
    • The most recent data shows an average annual TFP growth rate of 2.81 per cent and output growth of 3.17 per cent (2010–2019).

    Key recommendations

    • The report urged accelerating investments in agricultural R&D to increase and preserve productivity gains, especially for small farmers.
    • It identified six strategies and policies that would create sustainable agricultural growth at all scales of production:
    1. Invest in agricultural research and development
    2. Embrace science-and-information-based technologies
    3. Improve infrastructure for transportation, information and finance
    4. Cultivate partnerships for sustainable agriculture, economic growth and improved nutrition
    5. Expand and improve local, regional and global trade
    6. Reduce post-harvest loss and food waste

     

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  • The poor conditions of protectors

    Context

    In memory of these and other colleagues killed, all the police forces of the State and Centre observe October 21 as Police Commemoration Day.

    Casualties among the police forces

    • As the CRPF is deployed in the highly disturbed areas of Jammu and Kashmir, the Northeast and the Left-Wing Extremist-affected States, the highest casualties (82) were seen in this force.
    • The Indo-Tibetan Border Police (ITBP), which guards the border from Ladakh to Arunachal Pradesh at forbidding heights, lost 54 of its personnel.
    • The Border Security Force lost 47 personnel.
    • Among the State Police forces, Chhattisgarh, which is combating the Maoist menace, lost the most personnel (32) followed by J&K (17) and Karnataka (17).

    Neglect of the police and paramilitary personnels

    • They get paid low salaries, have a poor quality of life and are often deprived of basic facilities.
    • The morale of the paramilitary personnel is not of the desired level.
    • Those who cleared recruitment exams in 2003 but joined the force in 2004 or later are not eligible for pension under the old norms.
    • Canteen and medical facilities are dismal.
    • Items sold through the Central Police Canteens are not exempted from GST.
    • There are notable variations in the ex-gratia amounts given to the next of kin of the police who are killed.
    • The Centre and the States need to bring about uniformity in the amount paid.
    • Care should be taken to ensure that the next of kin are not deprived of a decent living.
    • Payments from the public exchequer need to be made judiciously.

    Conclusion

    It is high time the government takes note of the grievances of the police and paramilitary personnel and not let their sacrifices go in vain.

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