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  • Wetland Conservation

    Four new sites to get Ramsar Tag

    India MappingPrelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the News?

    Ahead of World Wetlands Day (February 2nd), the Environment Ministry announced the inclusion of four new Ramsar sites, bringing India’s total to 89.

    The newly designated sites are Sakkarakottai Bird Sanctuary and Therthangal Bird Sanctuary in Tamil Nadu, Khecheopalri Wetland in Sikkim, and Udhwa Lake Bird Sanctuary in Jharkhand.  With this, Tamil Nadu now has 20 Ramsar sites, the highest in the country, followed by Uttar Pradesh with 10 sites.

    About the Newly Added Ramsar Sites: 

    Description
    Sakkarakottai Bird Sanctuary, Tamil Nadu
    • Location: Ramanathapuram District, Tamil Nadu.
    • Originally an irrigation tank, now a designated bird sanctuary.
    • Recharged by northeast monsoon (Oct-Jan).
    • Supports 42+ bird species, including Spot-billed Pelican, Grey Heron, Little Cormorant, and Black Kite.
    Therthangal Bird Sanctuary, Tamil Nadu
    • Location: Theerthangal Village, Ramanathapuram District, Tamil Nadu.
    • A freshwater ecosystem and an important breeding ground for waterbirds.
    • Recorded 96 bird species across 18 orders and 44 families.
    • Notable species include Oriental Darter, Black-headed Ibis, Asian Woolly-necked Stork, and Spot-billed Pelican.
    Khecheopalri Wetland, Sikkim
    • Location: West Sikkim, near Khecheopalri Village.
    • A sacred lake revered by Buddhists and Hindus.
    • Part of a temperate Himalayan peatland ecosystem, surrounded by broad-leaved mixed temperate forests.
    • Flora: Rich in macrophytes, phytoplankton, and zooplankton.
    • Fauna: Supports fish species like Cyprinus carpio, Danio aequipinnatus, and various migratory birds (Common Merganser, Tufted Duck).
    Udhwa Lake Bird Sanctuary, Jharkhand
    • Location: Sahebganj District, Jharkhand.
    • Comprises two interconnected lakes: Pataura (155 ha) and Berhale (410 ha).
    • Connected to the Ganga River via the Udhuwa Nala (25 km stretch).
    • Pataura Lake depth: ~2 meters; Berhale Lake depth: ~70 cm, covered with aquatic vegetation.
    • Flora: Home to 42 algae species and 36 aquatic macrophytes.
    • Fauna: Habitat for 83 bird species, including the Near Threatened Black-necked Stork and 22 commercially valuable fish species.

     

    PYQ:

    [2019] Consider the following statements:

    1. Under Ramsar Convention, it is mandatory on the part of the Government of India to protect and conserve all the wetlands in the territory of India.
    2. The Wetlands (Conservation and Management) Rules, 2010 were framed by the Government of India based on the recommendations of Ramsar Convention.
    3. The Wetlands (Conservation and Management) Rules, 2010 also encompass the drainage area or catchment regions of the wetlands as determined by the authority.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only

    (b) 2 and 3 only

    (c) 3 only

    (d) 1, 3 and 3

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  • Pharma Sector – Drug Pricing, NPPA, FDC, Generics, etc.

    Cannabis Cultivation in India

    Prelims Only | Agriculture | Mains Paper 3: Major Crops & Cropping Patterns

    Why in the News?

    The Himachal Pradesh Cabinet has approved a pilot study for the controlled cultivation of cannabis for medicinal and industrial purposes.

    Legal Status of Cannabis Cultivation in India:

    • Prohibited for recreational use under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985.
    • Section 2 of the NDPS Act bans the cultivation, production, and sale of cannabis resin and flowers.
    • Section 10 allows state governments to regulate cannabis cultivation for medicinal and scientific purposes.
    • Section 14 grants the Central Government authority to permit cultivation for industrial uses (fiber and seed extraction).

    Why Himachal Pradesh Could Soon Allow Controlled Cannabis Cultivation?

    • The Himalayan region’s soil and climate are ideal for cultivating low-THC hemp varieties, making Himachal Pradesh a prime location for controlled cannabis farming.
    • The government sees controlled cultivation as a way to generate revenue, create employment opportunities, and support local farmers, particularly in Kullu, Chamba, Mandi, Solan, Kangra, and Sirmaur.
    • Cannabis cultivation will be restricted to industrial and pharmaceutical uses, such as:
      • Pain relief medications
      • Textile and paper production
      • Biofuel and cosmetics
      • Hemp-based food products
    • The Kullu and Malana regions are known for illegal narcotic cannabis cultivation. Regulating the sector could reduce illegal activities and ensure legal trade.
    • The Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985 allows state governments to permit and regulate cannabis cultivation for scientific, medicinal, and industrial purposes under strict conditions.

    Which are the other States to allow Controlled Cannabis Cultivation in India?

    • Uttarakhand (2018):
      • First state to legalize industrial hemp cultivation.
      • Managed by the Centre for Aromatic Plants (CAP), Selaqui.
      • Challenges include maintaining THC levels below 0.3% and seed availability.
    • Madhya Pradesh (2023):
      • Approved medicinal cannabis research but commercial cultivation is yet to start.
      • Sai Phytoceuticals (Pvt. Ltd.) received the first license for cannabis-based medicine production.
    • Jammu & Kashmir (2021):
      • India’s first medicinal cannabis pilot project launched by CSIR-Indian Institute of Integrative Medicine (IIIM), Jammu.
      • Conducted in Public-Private Partnership (PPP) mode with a Canadian firm.
      • Research focuses on cannabis-based cancer and epilepsy treatments.

    PYQ:

    [2018] India’s proximity to the two of the world’s biggest illicit opium-growing states has enhanced her internal security concerns. Explain the linkages between drug trafficking and other illicit activities such as gunrunning, money laundering and human trafficking. What counter-measures should be taken to prevent the same?

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  • Nuclear Energy

    China’s Artificial Sun creates Record in Fusion Research

    Prelims Only | Science Tech | Mains Paper 3: S&T – Applications In Everyday Life

    Why in the News?

    China’s Experimental Advanced Superconducting Tokamak (EAST), commonly referred to as the Artificial Sun, has set a new world record by sustaining a high-confinement plasma operation for 1066 seconds. The artificial sun reached an extreme temperature of 100 million degrees Celsius, surpassing its own previous record of 403 seconds.

    What is the EAST Project?

    • EAST is a nuclear fusion research facility developed by the Chinese Academy of Sciences (ASIPP) in 2006.
    • It aims to replicate solar fusion reactions to create a sustainable, clean energy source for future power generation.
    • The project serves as a global research platform for fusion experiments and advancing magnetic confinement technology.
    • It uses superconducting magnets to contain ultra-hot plasma, necessary for fusion.

    Comparison with Other Fusion Projects

    • China’s EAST (Experimental Advanced Superconducting Tokamak):
      • Record: 1066 seconds at 100 million degrees Celsius (2025).
      • Previous Record: 403 seconds at high confinement mode.
      • Goal: Develop a commercial fusion power plant.
    • Korea’s KSTAR (Superconducting Tokamak Advanced Research):
      • Record: 100 million degrees Celsius for 20 seconds (2020).
      • Goal: Sustain a longer plasma confinement period.
    • France’s ITER (International Thermonuclear Experimental Reactor):
      • Largest global fusion project, involving 35 nations.
      • Expected to achieve plasma ignition by 2035.
      • Focuses on demonstrating large-scale fusion feasibility.

    Significance of This Achievement

    • Record-Breaking Fusion Operation: EAST sustained plasma at 100 million°C for 1066 seconds, surpassing its previous record of 403 seconds.
    • Progress Toward Fusion Power Plants: Prolonged plasma confinement is crucial for achieving continuous, self-sustaining fusion reactions.
    • Potential for Clean Energy: Fusion produces zero carbon emissions and could serve as an unlimited energy source once commercially viable.
    • Global Competition: Other projects like ITER (France) and KSTAR (Korea) are also advancing fusion research, aiming for similar breakthroughs.

    Challenges in Nuclear Fusion

    • Extreme Temperatures: Plasma must be sustained at over 100 million°C, requiring high-energy input.
    • Material Limitations: Reactor components must withstand intense heat and radiation, yet no material can do so indefinitely.
    • Energy Input vs. Output: Current reactors consume more energy than they generate, preventing commercial viability.
    • Magnetic Confinement Issues: Plasma instability can disrupt reactions, making sustained fusion difficult.
    • High Costs: Fusion research requires expensive superconductors, cryogenics, and containment systems.

    Difference between Nuclear Fusion and Fission

    Nuclear Fusion Nuclear Fission
    Process Combines atomic nuclei to release energy. Splits heavy nuclei to release energy.
    Energy Output Much higher than fission. Comparatively lower.
    Fuel Source Hydrogen isotopes (Deuterium, Tritium)—abundant in seawater. Uranium-235, Plutonium-239—limited supply.
    Waste Production Minimal radioactive waste (helium byproduct). Produces long-lived radioactive waste.
    Environmental Risk No meltdown risk, completely safe. Risk of radiation leaks (e.g., Chernobyl, Fukushima).
    Current Feasibility Still experimental, not yet commercially viable. Commercially used in nuclear power plants.

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  • Urban Floods

    In news: Palar River

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the News?

    The British-era Palar River Anaicut, a masonry check dam built in 1858, is undergoing a major restoration following severe structural damage caused by the 2021 floods.

    Supreme Court’s Directives:

    • The Supreme Court (SC) has directed that all restoration activities must adhere to environmental protection laws and sustainable development principles.
    • The WRD must ensure that the restored structure can withstand future floods and water releases.
    • The SC emphasized local farmers’ involvement in decision-making, considering the impact on irrigation and water availability.

    In news: Palar River

    About Palar River

    • The Palar River originates in the Nandi Hills of Karnataka, at an altitude of 1,400 meters above sea level.
    • It flows through Karnataka, Andhra Pradesh, and Tamil Nadu, covering a total length of 348 km before emptying into the Bay of Bengal near Vayalur, Tamil Nadu.
    • Important tributaries include Cheyyar, Ponnai, Malattar, and Kosasthalaiyar rivers.
    • The river has been a lifeline for agriculture, supporting ancient civilizations and irrigation networks in South India.
    • Geographical Features: 
      • It is rain-fed, experiencing seasonal variations—it remains dry for most of the year but carries heavy flows during monsoons.
      • Its basin consists of alluvial, red, and black soil, supporting paddy, sugarcane, and groundnut cultivation.
      • It is heavily dammed, leading to reduced flow, sand mining concerns, and groundwater depletion.
      • The Palar Anaicut and various reservoirs distribute water to agricultural lands in Tamil Nadu, ensuring water security for farmers.

    PYQ:

    [2016] Recently, which of the following States has explored the possibility of constructing an artificial inland port to be connected to sea by a long navigational channel?

    (a) Andhra Pradesh

    (b) Chhattisgarh

    (c) Karnataka

    (d) Rajasthan

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  • Foreign Policy Watch: India-Sri Lanka

    [31st January 2025] The Hindu Op-ed: An opportunity to settle Sri Lanka’s ethnic problem

    op-ed snap | International Relations | Mains Paper 2: India & Its Neighborhood – Relations

    PYQ Relevance:

    Q) ‘India is an age-old friend of Sri Lanka.’ Discuss India’s role in the recent crisis in Sri Lanka in the light of the preceding statement. (UPSC CSE 2022)

     

    Mentor’s Comment: UPSC mains have always focused on India is an age-old friend of Sri Lanka (2022), and ‘India — Sri Lanka relations ’ (2013).

    Over the past 40 years, India’s role in Sri Lanka’s ethnic conflict evolved from mediator to active player, leading to the 1987 Indo-Lanka Accord and the 13th Amendment, which introduced Provincial Councils. The JVP opposed it, calling it an Indian imposition. The LTTE also rejected it and demanded a separate Tamil Eelam, which India never supported.

    Today’s editorial talks about the India Srilanka relation. This content would help in GS Paper 2 International relations.

    _

    Let’s learn!

    Why in the News?

    Recently, India’s decision to name the Jaffna Cultural Centre after Tamil poet-philosopher Thiruvalluvar is a symbolic way to strengthen its deep ties with Sri Lanka.

     

    What are the historical roots of the ethnic conflict in Sri Lanka?

    • Colonial Legacy: British colonial rule (1815-1948) favoured the Tamil minority in administration and education, causing resentment among the Sinhalese majority.
    • Sinhala-Only Act (1956): The official adoption of Sinhala as the sole national language marginalized Tamil speakers and led to widespread Tamil discontent.
    • Discrimination in Education & Employment: Policies like the standardization of university admissions (1970s) made it harder for Tamils to access higher education and government jobs.
    • Ethnic Violence & Riots: The 1983 anti-Tamil pogrom (Black July) led to mass violence against Tamils, intensifying the demand for Tamil autonomy.
    • Rise of the LTTE: The Liberation Tigers of Tamil Eelam (LTTE) emerged as the dominant militant group demanding an independent Tamil Eelam, leading to a brutal civil war (1983-2009).
    • Indo-Lanka Accord (1987) & 13th Amendment: This attempt at devolution through Provincial Councils failed to fully address Tamil aspirations, leading to continued tensions.

    How can the new government address Tamil aspirations and rights?

    • Full Implementation of the 13th Amendment: The government should prioritize the effective implementation of the 13th Amendment to the Constitution, which allows for provincial councils and limited autonomy for Tamil-majority regions. This step is crucial for addressing Tamil political representation and governance.
    • Engagement in Inclusive Dialogue: Establishing a direct and inclusive dialogue with Tamil political leaders and communities is essential. This dialogue should focus on addressing historical grievances, ensuring that Tamil voices are heard in national policy-making, and fostering reconciliation.
    • Address Land Rights and Resettlement Issues: The government must take action to return lands occupied by the military to their rightful Tamil owners and halt any ongoing land grabs that threaten Tamil communities. Ensuring land rights is vital for restoring trust and dignity among Tamils.
    • Commitment to Human Rights Accountability: The new administration should commit to addressing past human rights violations during the civil war, including accountability for wartime atrocities. This includes repealing repressive laws like the Prevention of Terrorism Act (PTA) that disproportionately affect Tamils.
    • Cultural Recognition and Language Rights: Promoting Tamil culture and ensuring that Tamil is recognized as an official language alongside Sinhala would help foster a sense of inclusion and respect for Tamil identity within the broader national framework, enhancing community cohesion.

    What role does international support play in resolving Sri Lanka’s ethnic issues?

    • Mediation and Pressure: Countries like India have historically acted as mediators in Sri Lankan affairs. Their support can encourage the government to adhere to commitments regarding Tamil rights and autonomy.
    • Development Assistance: International aid can facilitate economic development in Tamil areas, addressing disparities that fuel ethnic tensions. India’s financial assistance for infrastructure projects is an example of how external support can aid reconciliation efforts.
    • Monitoring Human Rights: International organizations can monitor human rights conditions in Sri Lanka, advocating for accountability and justice for past atrocities against Tamils, which is essential for building trust and moving towards lasting peace.

    Way forward:

    • Strengthen Political and Constitutional Reforms: Ensure full implementation of the 13th Amendment, conduct Provincial Council elections, and explore further constitutional reforms to enhance Tamil political representation and autonomy.
    • Promote Inclusive Economic Development and Reconciliation: Invest in infrastructure, employment, and education in Tamil-majority areas while advancing truth, justice, and reconciliation initiatives to address past grievances and build long-term social cohesion.

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  • Oil and Gas Sector – HELP, Open Acreage Policy, etc.

    Cabinet approves Mechanism for procurement of ethanol by Public Sector Oil Marketing Companies (OMCs) under EBP Programme

    ExplainedSchemes | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Why in the News?

    The Cabinet Committee on Economic Affairs (CCEA) has approved a revision in the ethanol procurement price for Public Sector Oil Marketing Companies (OMCs) for the Ethanol Supply Year (ESY) 2024-25.

    What is the significance of the Price Revision?

    The recent revision of the ethanol procurement price for Public Sector Oil Marketing Companies (OMCs) is significant for several reasons:

    • Price Stability and Remuneration: The increase from ₹56.58 to ₹57.97 per litre ensures price stability and provides a more remunerative rate for ethanol suppliers, which is crucial for maintaining a steady supply of ethanol.
    • Support for Sugarcane Farmers: The separate payment of Goods and Services Tax (GST) and transportation charges will benefit sugarcane farmers, enhancing their income and encouraging production.
    • Meeting Blending Targets: The 3% increase in the price is aimed at ensuring adequate availability of ethanol to meet the ambitious blending target of 20% by 2025-26, advancing from the original target of 2030.
    • Reducing Crude Oil Dependency: This initiative is part of a broader strategy to reduce India’s dependency on crude oil imports, leading to substantial foreign exchange savings and environmental benefits.

    What is Ethanol Blended Petrol (EBP)?

    The Ethanol Blended Petrol (EBP) Programme is a government initiative aimed at promoting the blending of ethanol with petrol to create a more sustainable and environmentally friendly fuel option.

    • OMCs are currently blending up to 20% ethanol with petrol, which helps reduce reliance on imported crude oil and lowers carbon emissions.
    • Ethanol blending has dramatically increased from 38 crore litres in the Ethanol Supply Year (ESY) 2013-14 to 707 crore litres in ESY 2023-24, achieving an average blending rate of 14.60%.
    • The programme has resulted in estimated savings of over ₹1,13,007 crore in foreign exchange and has substituted approximately 193 lakh metric tonnes of crude oil over the past decade.

    What are other initiatives taken to promote biofuels?

    • National Policy on Biofuels (2018): This policy aims to reduce dependency on fossil fuels and promote sustainable development by encouraging the production and use of biofuels from various feedstocks such as sugarcane, broken rice, and maise.
    • Pradhan Mantri JI-VAN Yojana: This initiative focuses on accelerating the development of second-generation (2G) ethanol capacity in India, providing viability gap funding to support the establishment of 2G ethanol projects.
    • Global Biofuels Alliance (GBA): Launched in September 2023, this alliance aims to accelerate the global adoption of cleaner fuels and support decarbonization goals. It involves collaboration with multiple countries to enhance biofuel deployment.
    • Repurpose Used Cooking Oil (RUCO) Initiative: Launched by the Food Safety and Standards Authority of India (FSSAI) in 2018, this initiative aims to convert used cooking oil into biofuel, thereby preventing its reuse in food preparation and promoting sustainability.
    • Biodiesel Production Targets: India has set a biodiesel blending target of 5% by 2030. The government is mobilizing production through policies that support feedstock availability, including used cooking oil and non-edible industrial oils.
    • Sustainable Aviation Fuel (SAF) Initiatives: The National Biofuel Coordination Committee has established targets for blending SAF in domestic flights, aiming for 1% by 2025 and 5% by 2030.
    • Ethanol Blending Advancements: The target for ethanol blending has been advanced from 2030 to 2025, with plans to achieve 20% blending. This includes signing long-term off-take agreements with dedicated ethanol plants to ensure a steady supply.

    Way forward: 

    • Strengthen Feedstock Supply Chain: Enhance agricultural productivity and diversify feedstock sources including maize and non-food biomass, to ensure a stable and sustainable ethanol supply.
    • Expand Infrastructure and Investments: Develop ethanol storage, blending, and distribution networks while encouraging private sector participation through financial incentives and policy support.

    Prelims PYQ:

    [2013] With reference to the usefulness of the by-products of the sugar industry, which of the following statements is/are correct?

    1. Bagasse can be used as biomass fuel for the generation of energy.
    2. Molasses can be used as one of the feedstocks for the production of synthetic chemical fertilizers.
    3. Molasses can be used for the production of ethanol.

    Select the correct answer using the codes given below.

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

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  • Disasters and Disaster Management – Sendai Framework, Floods, Cyclones, etc.

    The science is clear, crowd disasters are preventable

    Explained | Enviro & Biodiversity | Mains Paper 3: Disaster Management

    Why in the News?

    This week in India, a tragic crowd crush at the Maha Kumbh claimed the lives of 30 people.

    What scientific evidence supports the prevention of crowd disasters?

    • Crowd Density Studies: Research indicates that crowd crushes become dangerous at densities of five persons per square meter, with serious risks emerging at seven persons per square meter or more. This evidence underscores the need for effective crowd management to prevent dangerous overcrowding.
    • Predictability of Crowd Behavior: Scientific studies have shown that crowd dynamics can be predicted and managed. By understanding how crowds behave in different environments, planners can implement strategies to avoid conditions that lead to crushes.
    • Historical Data on Past Incidents: Analysis of previous crowd disasters reveals common factors leading to fatalities, such as inadequate space and poor crowd control measures. Lessons learned from these incidents can inform better practices for future events.

    How can effective crowd management practices be implemented at large events?

    • Strategic Planning: Event organizers should create a comprehensive plan that includes crowd flow evaluation, risk assessment, and clearly marked exits and entrances. This planning should involve local officials to ensure safety measures are adequate.
    • Staggered Entry and Exit Times: To reduce peak crowd density, organizers can stagger arrival and departure times for attendees, allowing for a more manageable flow of people into and out of the venue.
    • Use of Barriers: Implementing physical barriers can help segment crowds into smaller groups, reducing the likelihood of dangerous surges. Barriers should be designed to allow for emergency exits if needed.
    • Crowd Monitoring Systems: Utilizing technology for real-time monitoring of crowd density and behaviour can help event staff respond quickly to potential dangers. Mass notification systems can alert staff about growing concerns, enabling timely interventions.
    • Staff Training and Communication: Ensuring that all staff and security personnel are trained in crowd management techniques is essential. Clear communication protocols should be established to relay information quickly during an event.

    What role do policies and regulations play in enhancing crowd safety?

    • Mandatory Safety Regulations: Governments should introduce regulations requiring event organizers to adhere to safety standards that limit crowd density and ensure adequate emergency planning. Such policies can hold organizers accountable for crowd safety.
    • Economic Incentives for Compliance: While event organizers often prioritize profit over safety, regulations can create incentives for them to implement safer practices, such as limiting ticket sales based on venue capacity.
    • Post-Incident Reviews and Accountability: Establishing a framework for reviewing crowd disasters can lead to improved regulations and practices in the future. Accountability measures can encourage compliance with safety standards among event planners and local authorities.
    • Public Awareness Campaigns: Governments can promote awareness about crowd safety among the public, educating attendees on how to behave in crowded situations and the importance of following safety protocols during events.

    What are the steps taken by the government?

    • National Disaster Management Authority (NDMA) Guidelines: The NDMA has formulated guidelines to ensure safe crowd management during mass gatherings. These guidelines include regulating traffic, using barricades, and ensuring adequate police presence to manage crowds effectively.
    • Capacity Evaluation: Before hosting large events, there is a requirement for proper evaluation of the venue’s capacity. This ensures that the infrastructure can handle the expected crowd size without leading to dangerous overcrowding.
    • Use of Technology: The government encourages the deployment of advanced technologies such as CCTV surveillance, drones for aerial monitoring, and public address systems to enhance crowd management and safety.
    • Traffic Management: Effective traffic management strategies are implemented, including displaying route maps, managing unauthorized parking, and controlling pedestrian flow around event venues to prevent bottlenecks.

    Way forward: 

    • Strengthen Regulatory Framework – Governments should enforce stricter crowd safety regulations, mandating capacity limits, emergency preparedness, and real-time crowd monitoring for all large events.
    • Enhance Technological Integration – Deploy AI-based crowd analytics, drone surveillance, and real-time alert systems to monitor crowd density and movement. Training event staff in using these technologies will improve response times and prevent disasters.

    Mains PYQ:

    Q Discuss the recent measures initiated in disaster management by the Government of India departing from the earlier reactive approach. (UPSC IAS/2020)

    Q How important are vulnerability and risk assessment for pre-disaster management? As an administrator, what are key areas that you would focus on in a Disaster Management System? (UPSC IAS/ 2013)

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  • Microfinance Story of India

    India approves Mutual Credit Guarantee Scheme for MSME manufacturers

    ExplainedSchemes | Economics | Mains Paper 3: Mobilization Of Resources

    Why in the News?

    The government approved a Mutual Credit Guarantee Scheme  (MCGS)  for micro, small, and medium enterprises (MSMEs).

    What is MCGS-MSME?

    • The Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) is a government initiative aimed at enhancing financial accessibility for micro, small, and medium enterprises in India.

    What are the Provisions and Salient Features of MCGS-MSME?

    • Eligibility and Loan Coverage: The MCGS-MSME is available to MSMEs with a valid Udyam Registration Number, providing loan guarantees of up to Rs 100 crore for purchasing equipment and machinery.
    • Guarantee Coverage: The scheme offers 60% guarantee coverage by the National Credit Guarantee Trustee Company Limited (NCGTC) for loans sanctioned to Member Lending Institutions (MLIs).
    • Project Cost Requirements: While the guaranteed loan amount is capped at Rs 100 crore, the total project cost can exceed this amount, provided that at least 75% of the project cost is allocated for equipment or machinery.
    • Repayment Terms: Loans up to Rs 50 crore have a repayment period of up to 8 years, including a moratorium of up to 2 years on principal repayments. For loans above Rs 50 crore, longer repayment schedules may be considered.
    • Scheme Duration and Fees: The MCGS-MSME will be in effect for four years from the issuance of operational guidelines or until cumulative guarantees of Rs 7 lakh crore are issued. The initial guarantee fee is waived for the first year, followed by a fee of 1.5% per annum for the next three years, and then reduced to 1% per annum thereafter.

    What are the other steps taken to ease access to Credit for MSMEs?

    In addition to the MCGS-MSME, several other measures have been implemented to facilitate easier access to credit for MSMEs:

    • Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): This scheme provides collateral-free loans up to Rs 2 crore, offering up to 85% guarantee coverage, thereby reducing lender risk.
    • Raising and Accelerating MSME Performance (RAMP) Program: This initiative involves an investment of Rs 6,000 crore over five years, aimed at enhancing MSME growth and performance.
    • Trade Receivables Discounting System (TReDS): An online platform that enables MSMEs to receive faster payments from larger companies, improving cash flow and liquidity.
    • Emergency Credit Line Guarantee Scheme (ECLGS): Introduced during COVID-19, this scheme provided a Rs 3 lakh crore relief package, offering a 100% government-backed guarantee for loans.
    • Priority Sector Lending (PSL) Norms: These regulations require banks to allocate a portion of their loans specifically for MSMEs, ensuring that they receive necessary financial support.

    What are the challenges faced by MSMEs in accessing finance?

    • Access to Finance: One of the most significant challenges faced by MSMEs is obtaining timely and affordable financing. For example, The Bank of Baroda reported that over 50% of MSMEs in India could not access formal credit.
    • Lack of Financial Knowledge: Many MSMEs lack awareness of available financial schemes and products, which restricts their ability to access funding. For example, Many business owners remain unaware of the Shishu, Kishor, and Tarun loan schemes.

    Way forward: 

    • Enhanced Financial Literacy and Awareness Campaigns: There is a need for targeted outreach programs to educate MSMEs about available financial schemes, including loan products and government initiatives like Shishu, Kishor, and Tarun schemes, to ensure they are aware and can leverage them effectively.
    • Streamlined Loan Processes and Collateral-Free Options: Simplifying the loan application process and expanding collateral-free loan schemes like CGTMSE, along with improving credit rating systems, will ensure quicker and easier access to funds, especially for smaller MSMEs.

    Mains PYQ:

    Q  Can the strategy of regional-resource-based manufacturing help in promoting employment in India? (UPSC IAS/2019)

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  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    [pib] E-Shram Microsites & Occupational Shortage Index (OSI)

    PIB | Governance | Mains Paper 2: E-Governance

    Why in the News?

    Union Minister for Labour & Employment has launched State and Union Territory Microsites under the e-Shram initiative and the Occupational Shortage Index (OSI).

    About E-Shram Microsites

    • E-Shram Microsites are state-specific digital platforms integrated with the national e-Shram database.
    • It is aimed at providing unorganised workers seamless access to both Central and State government welfare programs.
    • These platforms ensure real-time integration between State portals and the e-Shram database, allowing simplified registration of unorganised workers.

    Key benefits includes:

    (1) For Workers:

    • One-stop access to employment opportunities, skilling programs, and social security benefits.
    • Multilingual accessibility, ensuring workers from different regions can navigate the platform in their preferred language.
    • Two-way integration with the e-Shram database, allowing workers to receive real-time updates on welfare schemes and job opportunities.

    (2) For States/UTs:

    • Cost-effective digital infrastructure, reducing the need for separate State-level portals.
    • Real-time analytics dashboards for better policy decision-making and customized tools for specific labour market requirements.

    What is Occupational Shortage Index (OSI)?

    • The OSI is a data-driven tool designed to identify job roles and industries facing labour shortages, improving workforce planning and employment outcomes.
    • It is based on ILO methodology and quarterly Periodic Labour Force Survey (PLFS) data, ensuring an accurate and updated analysis of the job market.
    • It comprise of following 4 sub-indicators:
    1. Hourly Wage Growth
    2. Employment Growth
    3. Growth in Hours Worked
    4. Share of Under-qualified Workers
    • High OSI indicates Shortage/higher demand of workers within a particular occupation, which may result in higher wages, more job opportunities.
    • Low OSI indicates Surplus/less demand of workers, which may lead to lower wages, fewer job opportunities, and increased competition for available positions.

    PYQ:

    [2015] Discuss the changes in the trends of labour migration within and outside India in the last four decades.

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  • Water Management – Institutional Reforms, Conservation Efforts, etc.

    MoEFCC approves Reconstruction of Teesta Dam despite Safety Concerns

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the News?

    The Union Ministry of Environment, Forest and Climate Change (MoEF&CC) has approved the reconstruction of the Teesta-III Dam, which was destroyed by a Glacial Lake Outburst Flood (GLOF) in October 2023.

    About Teesta River

    • The Teesta River is a transboundary river flowing through India and Bangladesh.
    • Originates from Tso Lhamo Lake, Sikkim, at 5,330 meters in the Himalayas.
    • Major tributary of the Brahmaputra River (Jamuna in Bangladesh).
    • Vital for irrigation, hydroelectric power, and water supply in Sikkim, West Bengal, and Bangladesh.
    • The Teesta Water Dispute remains unresolved, with Bangladesh seeking an equitable share of water.

    Geographical Features:

    • Length: 414 km (309 km in India, 105 km in Bangladesh).
    • Basin Area: 12,159 sq. km in Sikkim and North Bengal.
    • Originates in North Sikkim → flows through West Bengal → enters Bangladesh before merging with the Brahmaputra River.
    • Passes through major towns like Mangan, Kalimpong, Jalpaiguri, and Rangpo.
    • Tributaries:
      • Left-bank: Rangit, Relli, Great Rangit.
      • Right-bank: Lachung, Lachen, Talung.
    • It supports Himalayan biodiversity, crucial for tea plantations and terrace farming.

    Conservation Initiatives:

    • National River Conservation Plan (NRCP): Includes efforts to reduce pollution and improve water quality of the Teesta.
    • Teesta Barrage Project (West Bengal): Aimed at irrigation development and hydroelectric power generation in North Bengal.
    • Hydroelectric Projects in Sikkim: Several Teesta Hydropower Projects (Teesta Stage III, IV, V, VI, etc.) have been established to generate renewable energy while ensuring minimum ecological impact.
    • India-Bangladesh Water Sharing Talks: Ongoing diplomatic negotiations to resolve the Teesta water-sharing dispute, ensuring equitable distribution.
    • Catchment Area Treatment (CAT) Plan: Implemented to prevent soil erosion and siltation, protecting river health.
    PYQ:

    [2017] With reference to river Teesta, consider the following statements:

    1. The source of river Teesta is the same as that of Brahmaputra but it flows through Sikkim.

    2. River Rangeet originates in Sikkim and it is a tributary of river Teesta.

    3. River Teesta falls into Bay of Bengal at the border of India and Bangladesh.

    Which of the statements given above is/are correct?

    (a) 1 and 3 only

    (b) 2 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

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