Note4Students
From UPSC perspective, the following things are important :
Prelims level: LTRO
Mains level: Paper 3- Stance of MPC amid rising inflation
The article analyses the implications of the recently concluded MPC meeting and predicts the trends for the future.
Highlights of the MPC meeting
- In the October meeting of the monetary policy committee (MPC), repo rate were kept unchanged at 4%, with a continuation of an accommodative stance.
- It chose to ignore elevated levels of CPI inflation as transitory and maintaining focus on supporting growth.
- It appears that the MPC would maintain a status quo on rates through this fiscal year.
- The scope for further easing is anyways limited to 0.50%, as any more easing may affect household financial savings and endanger financial stability.
Ensuring the rate transmission
- With unchanged repo rates, the focus of the liquidity measures announced by the RBI is to further improve transmission of previous rate cuts across a spectrum of market rates and other instruments.
- The RBI Governor assured market participants that the large supply of government bonds in the second half along with a likely pick-up in credit demand, would be accommodated through open market purchases of government bonds.
Reducing the cost of borrowing
- The RBI may have to buy bonds worth ₹1,000 to 1,500 billion in these operations over 2HFY21 keeping pressure on yields [which affects interest rates].
- In a related move, to reduce the cost of borrowings for state governments, the RBI for the first time will buy state government bonds, as a special case for this year.
Other measures
- The extension of enhanced Held to Maturity (HTM) limit of banks on their government bonds portfolio to March 2022.
- A new on-tap targeted LTRO window was announced, for banks to borrow up to ₹1,000 billion from the RBI at a floating rate linked to the repo rate, and invest in corporate paper issued by specific sectors and to provide loans to them.
- In effect, the aim of the central bank is to ensure that lower policy rates determined by the macro-economic fundamentals, are reflected in lower cost of borrowings for the Centre, states and corporates.
Containing inflation
- Inflation outlook for this fiscal and projections for next year indicate that CPI inflation would ease, from an average of 6.8% in Q2 to 4.5% in Q4 and 4.1% by Q4FY22.
- Headline inflation is expected to fall, as supply conditions normalize with progressive unlocking and another year of bumper farm output helps pull down food inflation.
- Higher fuel taxes and import duties are expected to provide an upward push though.
- Effective supply management will therefore be crucial in controlling food inflation and ensuring that it does not turn persistent and feeds into non-food inflation.
Conclusion
- The role of monetary policy in the is limited and the RBI focus will remain on improving transmission of policy signals through banking, bond and credit market channels.
Back2Basics: LTRO
- Long-Term Repo Operation (LTRO) was introduced by the Reserve Bank in February, 2020.
- Through this policy, the central bank would provide liquidity support to commercial banks for a period of 1 to 3 years at the current repo rate, and would accept government securities as collateral in return.
- This is in contrast to the other measures it was providing such as Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF) which provide cash to banks for a period of 1 to 28 days only.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Definition of urban area
Mains level: Paper 2- Need for new definition of urban area
The article the need for liberal and realistic definition of the ‘urban’ area in the next Census and mention the implications of such change.
2 ways to define urban areas
1) Statutory town
- These towns are defined by state governments and place India’s urbanisation rate at 26.7%.
- A statutory town includes all places with a municipality, corporation, cantonment board or notified town area committee.
2) Census-based criteria
- Census adopts three criteria to define what is urban.
- The three criteria are:
- i) a minimum population of 5,000;
- ii) at least 75% of the male main working population engaged in non-agricultural pursuits, and
- iii) a density of population of at least 400 persons per sq km
- This, coupled with statutory towns, pegs India’s urbanisation rate at 31%.
- Total number of towns (state and census) stands at 7,933, together constituting a 377-mn population.
Why there is a need for changing the definition of ‘urban’
- There is growing evidence—mostly from satellite imagery—that India is way more urban than the 2011 Census estimate.
- This is quite plausible because there is a large sum of money allocated for rural development, and it is in the interest of state governments to under-represent urbanisation.
- Besides, the Census’s stringent definition was first carved out in 1961 which do not reflect the realities of the 21st century.
- India won’t be alone in changing these definitions for Census 2021.
- Many countries, such as China, Iran, the UK, among others, have changed the definition of ‘urban’ from one census to another.
Getting the right picture of urbanisation
- A more liberal and realistic definition in the upcoming census will present the actual picture of urbanisation.
- For instance, if we just use the population density criteria like 37 other countries, with the 400 people per sq km threshold, we will add around 500 mn people to the urban share of the population.
- This pegs the urbanisation rate at over 70%!
What will be its implications?
- First, the budgetary allocation will reflect the reality and scales will balance between rural and urban areas.
- Second, the urban areas will not be governed through rural governance structures of Panchayati Raj Institutions.
- Third basic urban infrastructure like sewerage networks, fire services, building regulations, high-density housing, transit-oriented development, piped drinking water supply.
- Fourth, these newly defined urban areas could act as a new source of revenue for funding local infrastructure development.
- This would ease pressure on state finances.
- Lastly, the rethink of urban definition would have an impact on the regional and national economy.
- These newly defined urban areas will open them to new infrastructure such as railway lines, discom services, highway connectivity, creation of higher education institutes which will together increase the connectivity and resource capability at the local level.
- This will not only boost the local economy but also ease pressure on bigger cities and help in cluster level development.
Conclusion
A rethink of urban definition in Census 2021, particularly with some degrowth in urban areas due to Covid, will bode well for India for coming decades in more ways than one.
Source:-
https://www.financialexpress.com/opinion/redefining-cities-a-new-urban-consensus/2102154/
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Various GHGs
Mains level: Hazards of N2O pollution
Human emissions of nitrous oxide (N2O) — a greenhouse gas 300 times more potent than carbon dioxide (CO2) — increased by 30 per cent between 1980 and 2016.
Observe the above image carefully and try to find out the major contributor of nitrous oxide emission in the Global N2O Budget.
What is Nitrous oxide?
- Nitrous oxide is a dangerous gas for the sustainable existence of humans on Earth.
- It has the third-highest concentration — after CO2 and methane — in our atmosphere among greenhouse gases responsible for global warming.
- N2O can live in the atmosphere for up to 125 years.
- Most N2O emissions have come from emerging countries like India, China and Brazil.
About the research
- Nitrous oxide global concentration levels have increased from 270 parts per billion (ppb) in 1750 to 331 ppb in 2018 — a jump of 20 per cent.
- The growth has been the quickest in the past five decades because of human emissions.
- The research was conducted through an international collaboration between the International Nitrogen Initiative (INI) and the Global Carbon Project of Future Earth, a partner of the World Climate Research Programme.
Why N2O matters?
- N2O is also the only remaining threat to the ozone layer, for it accumulates in the atmosphere over a long period of time, just like CO2.
- The increase in its emissions means that the climatic burden on the atmosphere is increasing from non-carbon sources as well, while the major focus of global climate change negotiations is currently centred on carbon.
- A major proportion of the N2O emissions in the last four decades came from the agricultural sector, mainly because of the use of nitrogen-based fertilizers.
- The growing demand for food and feed for animals will further increase global nitrous oxide emissions.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SVAMITVA
Mains level: Land records management in India
Our PM has launched the physical distribution of Property Cards under the SVAMITVA Scheme.
Try this MCQ:
Q.The SVAMITVA Scheme sometimes seen in news is related to:
Urban Employment/ Land records management/ Child Adoption/ None of these
About SVAMITVA
- SVAMITVA stands for Survey of Villages and Mapping with Improvised Technology in Village Areas.
- Under the scheme, the latest surveying technology such as drones will be used for measuring the inhabited land in villages and rural areas.
- The mapping and survey will be conducted in collaboration with the Survey of India, State Revenue Department and State Panchayati Raj Department under the Ministry of Panchayati Raj.
- The drones will draw the digital map of every property falling in the geographical limit of each Indian village.
- Property Cards will be prepared and given to the respective owners.
Significance of the scheme
- The scheme paves the way for using the property as a financial asset by villagers for taking loans and other financial benefits.
- Also, this is the first time ever that such a large-scale exercise involving the most modern means of technology is being carried out to benefit millions of rural property owners.
Various benefits
- The scheme will create records of land ownership in villages and these records will further facilitate tax collection, new building plan and issuance of permits.
- It will enable the government to effectively plan for the infrastructural programs in villages.
- It would help in reducing the disputes over property.
Back2Basics: E-Gramswaraj Portal
- E Gram Swaraj portal is the official portal of central govt for the implementation of Swamitva scheme.
- By visiting this portal people can check their Panchayat profile easily. It will also contain the details of ongoing development works and the fund allocated for them.
- Any citizen can create his or her account on the portal and can know about the developmental works of villages.
- The user of E Gram Swaraj portal can also access all work of the Ministry of Panchayati Raj.
- This single interface will help speed-up the implementation of projects in rural areas from planning to completion.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Calcium Nitrate
Mains level: India's import dependence of fertilizers
Union Ministry of Chemicals & Fertilizers has launched an indigenous variety of fertilizers- ‘Calcium Nitrate’ & ‘Boronated Calcium Nitrate’.
Try this PYQ:
Why does the Government of India promote the use of ‘Neem-coated Urea’ in agriculture?
(a) Release of Neem oil in the soil increases nitrogen fixation by the soil microorganisms
(b) Neem coating slows down the rate of dissolution of urea in the soil
(c) Nitrous oxide, which is a greenhouse gas, is not at all released into atmosphere by crop fields
(d) It is a combination of a weedicide and a fertilizer for particular crops
What is Calcium Nitrate?
- Calcium nitrate is used as a water-soluble fertilizer in agriculture. In addition, this product is also used in wastewater treatment and to increase the strength of cement concrete.
- Last year, around 1.25 lakh metric tons (1,23,000 tons) of Calcium Nitrate was imported in the country.
- Of this, 76% was imported from China and the rest from other countries like Norway and Israel.
- These indigenous varieties will provide a quality product at a cheaper rate to the farmer community in the country than imported ones.
Uses of Calcium nitrate
- The fertilizer grade calcium nitrate is popular in the greenhouse and hydroponics. It is also used to control certain plant diseases.
- Calcium nitrate is also used in wastewater pre-conditioning for odour emission prevention.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Verticillium lecanii
Mains level: NA
Indian researchers have successfully developed new Aqueous Suspension formulation technology of bio-pesticide based on entomopathogenic fungus Verticillium lecanii.
Try this PYQ:
Q.Recently, there was a growing awareness in our country about the importance of Himalayan nettle (Girardinia diversifolia) because it is found to be a sustainable source of
(a) anti-malarial drug
(b) biodiesel
(c) pulp for paper industry
(d) textile fibre
Verticillium lecanii
- This bio-pesticide formulation has been found very effective in controlling various insects in seed spice crops (fenugreek, cumin, and coriander).
- It has a good shelf life, safe to user & environment and it may be effectively used for controlling different agricultural insects especially in seed spice crops.
- This bio-pesticide may be used as a safer alternative to chemical pesticides to minimize pesticide residue problem.
- Besides, it may be used as a key input for crop protection from insects pest in organic agriculture and Integrated Pest Management.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: RudraM-I
Mains level: India's missile arsenal
A New Generation Anti Radiation Missile (NGARM), RudraM-I, was successfully flight-tested by the Defence Research and Development Organisation (DRDO).
Try this MCQ:
Q.The RudraM-I recently seen in news is an:
Ans: Anti-satellite missile/ Anti-radiation Missile/ Anti-tank mine/ Submarine Torpedo
RudraM-I
- RudraM-I is an anti-radiation missile can locate and target any radiation-emitting source like enemy radars, communication sites and other Radio Frequency (RF) emitting targets.
- It is being developed by Defence Research Development Laboratory (DRDL), Hyderabad, as the nodal agency.
- It is a joint effort involving several DRDO labs, the IAF, the Hindustan Aeronautics Limited (HAL) and several public and private sector enterprises.
- This is the first indigenous anti-radiation missile of the country. It has a range of up to 200 km depending upon the launch conditions.
- It can be launched from altitudes of 500 m to 15 km and speeds of 0.6 to 2 mach.
- It can play a key role in neutralizing any jamming platforms of the enemy or take out radar stations thereby clearing a path for own fighters to carry out an offensive and also prevent own systems from being jammed.
How does it work?
- Anti-radiation missiles are designed to detect, track and neutralize the adversary’s radar, communication assets and other radio frequency sources, which are generally part of their air defence systems.
- Such a missile’s navigation mechanism comprises an inertial navigation system — a computerised mechanism that uses changes in the object’s own position — coupled with GPS, which is satellite-based.
- For guidance, it has a “passive homing head” — a system that can detect, classify and engage targets (radio frequency sources in this case) over a wide band of frequencies as programmed.
- Once the RudraM missile locks on the target, it is capable of striking accurately even if the radiation source switches off in between.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: World Food Programme
Mains level: Not Much
The Nobel Peace Prize was awarded to the World Food Programme (WFP) for feeding millions of people from Yemen to North Korea, with the coronavirus pandemic seen pushing millions more into hunger.
Tap here to read more about Nobel Prizes here at:
Nobel and other Prizes
World Food Programme
- The WFP is the food-assistance branch of the United Nations and the world’s largest humanitarian organization focused on hunger and food security.
- Founded in 1961, it is headquartered in Rome and has offices in 80 countries.
- In addition to emergency food aid, WFP focuses on relief and rehabilitation, development aid, and special operations, such as making food systems more resilient against climate change and political instability.
- It is an executive member of the United Nations Development Group, which collectively aims to fulfil the 17 Sustainable Development Goals (SDG), and has prioritized achieving SDG 2 for “zero hunger” by 2030.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: National butterflies
Mains level: Not Much
A citizen poll to identify the national butterfly concluded with three species garnering the highest number of votes.
Try this PYQ:
Q.With reference to India’s Biodiversity, Ceylon frogmouth, Coppersmith barbet, Gray-chinned minivet and White-throated redstart are-
(a) Birds
(b) Primates
(c) Reptiles
(d) Amphibians
Which are the three species?
(1) Indian Jezebel
- Blessed with a vibrant colour pattern, including vermilion (Haldi – kumkum), the Indian Jezebel (or Common Jezebel) is known to deter its predators with its flashy wing colours.
- Regarded as soldiers of farmers, they also prey on parasites that infest fruit-bearing plants.
- Widely distributed, the species can be spotted in gardens and other lightly wooded areas.
(2) Krishna Peacock
- It is a flagship species for biodiversity and conservation, generally found in large numbers in the Himalayas.
- Possessing a peculiarly large swallowtail, its iridescent green scales diffract light to coat itself in radiance.
(3) Orange Oakleaf
- It is commonly known as ‘dead leaf’ for its ability to camouflage as a dry autumn leaf while striking a stationary pose with its wings closed.
- The masquerade enables the species to prevent it from being devoured by birds in the moist forests of the northern Western Ghats, central, northern and northeastern parts of India where they are generally found.
- Besides, the Oakleaf is also known to exhibit polyphenism as it assumes specific colour and size during dry and wet seasons.
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