💥UPSC 2026, 2027, 2028 UAP Mentorship (March Batch) + Access XFactor Notes & Microthemes PDF
Talk to mentor

Civilsdaily

Login

Search results for: “”

  • Explained: Status and proceeds of Disinvestment

    disinvestment

    In the Union Budget for 2023-24, the government has set a disinvestment target of ₹51,000 crore, down nearly 21% from the budget estimate for the current year and just ₹1,000 crore more than the revised estimate.

    Lowest Disinvestment target in years

    • It is also the lowest target in seven years.
    • The Centre has not met the disinvestment target for 2022-23 so far.
    • It has realised ₹31,106 crore to date, of which, ₹20,516 crore or close to a third of the budgeted estimate came from the IPO of 3.5% of its shares in the Life Insurance Corporation (LIC).

    What is Disinvestment?

    • Disinvestment or divestment, in this context, is when the government sells its assets or a subsidiary, such as a Central or State public sector enterprise.
    • There are the three main approaches to disinvestment
    1. Minority disinvestment: The government retains a majority in the company, typically greater than 51%, thus ensuring management control.
    2. Majority disinvestment: The government hands over control to the acquiring entity but retains some stake.
    3. Complete privatisation: 100% control of the company is passed on to the buyer.

    Objectives of disinvestment

    The following main objectives of disinvestment were outlined:

    • To reduce the financial burden on the Government.
    • To improve public finances.
    • To introduce, competition and market discipline.
    • To fund growth.
    • To encourage wider share of ownership.
    • To depoliticize non-essential services.

    Institutional mechanism

    Ans. DIPAM

    • The Union Finance Ministry has a separate department for undertaking disinvestment-related procedures called the Department of Investment and Public Asset Management (DIPAM).

    Why need disinvestment?

    • Reduce money crunch: The government may disinvest in order to reduce the fiscal burden or bridge the revenue shortfall for that year.
    • Deficit financing: It also uses disinvestment proceeds to finance the fiscal deficit, to invest in the economy and development or social sector programmes, and to retire government debt.
    • Promote private ownership facilitation: Disinvestment also encourages private ownership of assets and trading in the open market.
    • Do away with loss-making: If successful, it also means that the government does not have to fund the losses of a loss-making unit anymore.

    Other importance of disinvestment lies in the utilization of funds for:

    1. Financing large-scale infrastructure development
    2. Investing in the economy to encourage spending
    3. For social programs like health and education

    How has disinvestment fared in India?

    Ans. Disinvestment in India has had mixed results.

    • Since the current government came to power in 2014, it has made significant progress in disinvestment, having raised a record ₹1.05 trillion (US$14.6 billion) for the fiscal year of 2017–18.
    • However, the government has also failed to reach its disinvestment targets in other years, due to various reasons such as market conditions, investor sentiment, and political opposition.
    • The government has also been criticized for not doing enough to find potential buyers for state-owned companies.
    • Despite this, recent years have seen several successful disinvestment deals, such as the strategic sale of Air India and the privatization of BPCL.

    Issues with CPSEs through years

    • Inherent flaws in PSU’s: The entire PSU’s mechanism did not turn out as efficient as it ought to be, all thanks to the prevailing hierarchy and bureaucracy.
    • Lack of autonomy: Lack of autonomy, political interference, nepotism & corruption has further deteriorated the situation.
    • Revenue losses: Due to the expenditure on items such as interest payments, wages and salaries of PSU employees and subsidies, the Government is left with hardly any surplus for capital expenditure on social and physical infrastructure.
    • Lack of Competitiveness: In an era of LPG industrial competitiveness has especially assumed an important role, necessitating privatization or disinvestment of PSUs.
    • Poor performance: Despite the huge injection of funds in the past decades, the functioning of many public sector units (PSUs) has traditionally been characterized by poor management, slow decision-making procedures, lack of accountability, low productivity, unsatisfactory quality of goods, excessive manpower utilization etc.

    Conclusion

    • Confronted with an unprecedented fiscal deficit and worried by an economy in crisis, the government has to find resources.
    • Disinvestment is a preferred option for ideological and practical reasons.
    • Short-term financial exigencies should not be the Centre’s sole reason for disinvestment in core sectors like petroleum.
    • The government could utilize the money gained by selling off PSUs to improve services in public goods like infrastructure, health and education.

     

    Crack Prelims 2023! Talk to our Rankers

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • Expunging Un-Parliamentary Speeches from Records

    Portions of a politicians’ speech delivered in Lok Sabha have been expunged — or removed — from the records of Parliament by the orders of the Speaker.

    Constitutional immunity for parliamentary speeches

    • Under Article 105(2) of the Constitution, “no Member of Parliament shall be liable to any proceedings in any court in respect of anything said…in Parliament or any committee thereof”.
    • However, MPs don’t enjoy the freedom to say whatever they want inside the House.
    • The speech of MPs is subject to the discipline of the Rules of Parliament, “good sense” of its Members, and the control of proceedings by the Speaker.
    • These checks ensure that MPs cannot use “defamatory or indecent or undignified or unparliamentary words” inside the House.

    How should Parliamentary Speeches be?

    • The Indian Parliament has a code of conduct which requires all members to speak in a civil and courteous manner.
    • Un-parliamentary speeches are not tolerated and offenders can be suspended or even expelled from the house.
    • The Speaker has the power to expunge any un-parliamentary speech from the record of the House and from the transcripts of the proceedings.

    Disciplinary action against unruly speeches

    • The Lok Sabha Speaker has the power to expunge any un-parliamentary speech made in the House.
    • The Speaker can also refer the matter to the Ethics Committee for further action.
    • The Speaker can also refer the matter to the Ethics Committee for further action which may include imposing fines and imprisonment for a period of up to six months.
    • The Speaker may also order the offender to apologize to the House.
    • Similar is the procedure with the Rajya Sabha Chairman.

    What is the expunging of speeches?

    • The expunging of certain words, sentences, or portions of a speech from the records is fairly routine procedure, and is carried out in accordance with laid down rules.
    • The decision on which parts of the proceedings are to be expunged lies with the Presiding Officer of the House.

    What are the rules on expunging from the record?

    • Rule 380 (“Expunction”) of the Rules of Procedure and Conduct of Business in Lok Sabha states the procedure for removal of a speech from the records.
    • Rule 381 says: The portion of the proceedings of the House so expunged shall be marked by asterisks and an explanatory footnote shall be inserted in the proceedings as follows: ‘Expunged as ordered by the Chair’.”

    What happens after a word has been expunged?

    • Expunged portions of the proceedings cease to exist in the records of Parliament, and they can no longer be reported by media houses, even though they may have been heard during the live telecast of the proceedings.
    • However, the proliferation of social media has introduced challenges in the watertight implementation of expunction orders.

    Way forward

    • Parliamentary speeches should be polite, respectful and dignified, avoiding any kind of personal attacks or slurs.
    • They should focus on the issue at hand, avoiding any kind of partisan rhetoric.
    • No offensive language should be used and all debates should be conducted in an atmosphere of mutual respect and understanding.
    • As a rule, all speakers should show due consideration for their colleagues and refrain from any kind of personal criticism.
    • They should stick to the facts and avoid unsubstantiated claims. Parliamentary speeches should be concise, clear and fact-based.
    • Finally, all speakers should remain mindful of their role as representatives of the people and should strive to maintain the highest standards of public discourse.

     

    Crack Prelims 2023! Talk to our Rankers

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • In news: Kingdom of Vijayanagara

    vijay

    A British author has published a book telling of the fictionalised story of the Vijayanagara Kingdom. He took accounts of the poet named Pampa Kampana, who witnessed Vijayanagara’s many victories and defeats.

    Who was Pampa Kampana?

    • Pampa Kampana was a 15th-century ruler of the Vijayanagara Empire, who reigned from 1484 to 1490.
    • He is known for his military campaigns against the Bahmani Sultanate and the Gajapati kingdom of Orissa.
    • He was a great patron of the arts and literature, and his court was home to illustrious poets and scholars such as Vyasatirtha.

     

    About Vijayanagara Kingdom

    • The Vijayanagara kingdom has long been a subject of historical and political interest.
    • From their capital, now known as Hampi, on the banks of the Tungabhadra River, the kings of Vijayanagara at the peak of their power ruled over a territory of more than 360,000 sq. km.
    • Founded in 1336, the kingdom of Vijayanagara lasted for more than three centuries, a period in which it withstood multiple political stresses, and saw significant advances in art and economy.
    • It was one of the most powerful kingdoms in the sub-continent.

    Its foundation

    • Over the course of its existence from 1336 to 1646, the kingdom saw various ups and downs.
    • Founded by Harihara I of the Sangama dynasty, Vijayanagara expanded from a strategic position on the banks of the Tungabhadra River.
    • By the 15th century, it had become a force to reckon with.

    Rise under Krishna Deva Raya I

    • The kingdom reached its peak under Krishna Deva Raya (reign 1509-1529).
    • It is a period in which Vijayanagara enjoyed military superiority to its rival kingdoms such as the Bahmani Sultanate, the Golconda Sultanate and the Gajapatis of Odisha.
    • At its peak, the kingdom stretched from Goa in the Konkan coast to parts of southern Odisha in the east and all the way to the very tip of the subcontinent in the south.

    Why the Vijayanagara history is so much celebrated?

    Ans. Economic Prosperity

    • Monetized economy: Coins were minted by the state as well as by merchant guilds using gold, silver, copper and brass, and their value depended on material weight.
    • Control over key commodities: The Empire’s principal exports were pepper, ginger, cinnamon, cardamom, myrobalan, tamarind timber, anafistula, precious and semi-precious stones, pearls, musk, ambergris, rhubarb, aloe, cotton cloth and porcelain.
    • Maritime trade: While the economy of the kingdom was largely dependent on agriculture, trade thrived in its many ports on either coast. Traveller Abd al-Razzaq Samarqandi chronicled how the ports of Mangalore, Honavar, Bhatkal, Barkur, Cochin, Cannanore, Machilipatnam, and Dharmadam saw traders from Africa, Arabia, Aden, the Red sea, China and Bengal and also served as ship building centres.

    Vijayanagara’s contributions to culture and architecture

    (1) Literary development

    • The Vijayanagar Empire was also known for its flourishing culture and literature.
    • The court was home to many poets and scholars, who wrote in both Sanskrit and Kannada.
    • The emperor Krishnadevaraya was himself a noted poet, authoring works such as the Amuktamalyada and the Jambavati Kalyanam.
    • The Vijayanagar Empire also patronized the arts, which led to a flourishing of music, dance, and painting.

    (2) Architectural development

    • Vijayanagara’s capital Hampi is a UNESCO World Heritage Site today, known for its sophisticated fortifications as well as innumerable temples and other architectural marvels.
    • From accounts of foreign travellers, by the beginning of the 16th century, Hampi-Vijayanagara was probably the second largest urban settlement on the planet (after Beijing) and among the most prosperous.
    • The most impressive architectural feat of the Vijayanagar Empire was the iconic Vitthala temple complex in Hampi.
    • This complex consists of a temple dedicated to the god Vitthala, a large audience hall, and a stone chariot shrine.
    • The Prasanna Virupaksha temple of Bukka I and the Hazara Rama temple of Krishna Deva Raya are striking examples of Vijayanagara’s characteristic style and intricate artistry.

    Causes of its decline

    • Military defeats: The first major defeat for the empire was the Battle of Talikota in 1565, in which the Vijayanagara Empire was defeated by a coalition of Muslim sultanates. This major defeat drastically weakened the Vijayanagara Empire and led to a period of political instability and civil war.
    • Economic disruption: This was further worsened by the Deccan Sultanates’ policy of destroying Vijayanagara’s economy and trade networks. This ultimately resulted in the loss of the empire’s political power and reduced its ability to defend itself from further attacks.
    • Internal conflict: Other contributing factors included internal divisions between the ruling families and the rise of local governors who declared their independence.

    Various travellers details of Vijayanagara kingdom

    • Vasco da Gama: The first encounter with the Vijayanagara Empire by a European traveller was by the Portuguese explorer, Vasco da Gama, who visited the kingdom in 1498, and was the first to recognize its wealth and power. After this, Krishnadevaraya in 1510 signed a treaty with the Portuguese to permit Albuquerque to construct forts in Bhatkal.
    • Nicolo Conti: The Italian traveller Nicolo Conti visited the kingdom in 1420 and documented his journey in a book titled “Viaggio in India”. He wrote about the grandeur of the cities and the wealth of the kingdom.
    • Jan Huyghen van Linschoten: The Dutch traveller Jan Huyghen van Linschoten visited the kingdom in 1583 and wrote a book describing his journey titled “Itinerario”. He wrote about the impressive forts, the magnificent temples, the thriving markets and the grand palaces.
    • Jean-Baptiste Tavernier: The French traveller Jean-Baptiste Tavernier visited the kingdom in 1665 and wrote a book about his journey titled “Les Six Voyages de Jean-Baptiste Tavernier”. He wrote about the fine architecture, the grandeur of the palaces, and the wealth and prosperity of the kingdom.
    • Robert Orme: The English traveller Robert Orme visited the kingdom in 1770 and wrote a book about his journey titled “Military Transactions in India”. He wrote about the size and scope of the empire, the grandeur of its cities and the advanced military technology used by the kingdom.

    Try this PYQ:

    Building ‘Kalyaana Mandapas’ was a notable feature in the temple construction in the kingdom of

    (a) Chalukya

    (b) Chandela

    (c) Rashtrakuta

    (d) Vijayanagara

     

    Post your answers here.

     

    Crack Prelims 2023! Talk to our Rankers

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • Lack of Quorum in Lok Sabha

    The Lok Sabha began a discussion on the general Budget but the House had to be adjourned before the scheduled time due to lack of quorum.

    What is Quorum?

    • Quorum is the minimum number of members of a deliberative assembly necessary to conduct the business of that assembly.
    • Article 100 of the Indian Constitution states that the quorum to constitute a meeting of either House of Parliament shall be one-tenth of the total number of members of that House.
    • This means that the quorum of Lok Sabha (Lower House) is 55 and that of Rajya Sabha (Upper House) is 25.

    Who decides the Quorum?

    • The quorum is usually decided at the beginning of the session and if it is not present when a vote is taken, the vote is invalid.
    • In the event of inadequate quorum, the Speaker or the Chairman can adjourn the House or suspend the sitting till the quorum is present.

    Challenging a Quorum

    • Furthermore, the quorum can be challenged by any member of the House.
    • In the event that the quorum is challenged, the Speaker or the Chairman can direct that a count of the members present be taken.
    • If the quorum is not present, the House is adjourned. However, if the quorum is present, the business of the House is resumed.

     

    Crack Prelims 2023! Talk to our Rankers

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • RBI announces pilot for QR code-based Coin Vending Machine

    qr

    To improve the distribution of coins among members of the public, the Reserve Bank of India (RBI) is preparing a pilot project on QR code-based Coin Vending Machine (QCVM) in collaboration with a few leading banks.

    QR code-based Coin Vending Machine (QCVM)

    • The QCVM is a cashless coin dispensation machine which would dispense coins against a debit to the customer’s bank account using Unified Payments Interface (UPI).
    • Unlike cash-based traditional Coin Vending Machine, the QCVM would eliminate the need for physical tendering of banknotes and their authentication.
    • Customers will also have the option to withdraw coins in the required quantity and denominations in QCVMs.

    When will it be launched?

    • The pilot project is planned to be initially rolled out at 19 locations in 12 cities across the country.
    • Machines will be installed at public places such as railway stations, shopping malls, marketplaces to enhance ease and accessibility.
    • Based on the learnings from the pilot tests, guidelines would be issued to banks to promote better distribution of coins using QCVMs.

     

    Crack Prelims 2023! Talk to our Rankers

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • Sarna Religion of the Tribals

    sarna

    West Bengal Assembly has tabled a motion to recognize Sarna Religion of the tribals and have a Sarna Code.

    Sarna Religion

    • The followers of Sarna faith believe pray to nature.
    • The holy grail of the faith is “Jal (water), Jungle (forest), Zameen (land)” and its followers pray to the trees and hills while believing in protecting the forest areas.
    • Jharkhand has 32 tribal groups of which eight are from Particularly Vulnerable Tribal Groups.
    • While many follow Hindu religion, some have converted to Christianity — this has become one of the planks of demanding a separate code “to save religious identity”— as various tribal organisations put it.

    Demand for Sarna Code

    • Tribal groups in the region have long demanded the Sarna code, a separate religious classification in the census, recognising their status as independent religious communities.
    • It is believed that 50 lakhs tribal in the entire country put their religion as ‘Sarna’ in the 2011 census, although it was not a code.
    • The resolution will seek a special column for followers of the Sarna religion in the Census, 2021.
    • At present, they are not classified as a separate entity.

    Politics around the tribe

    • Many of the tribals who follow this faith have later converted to Christianity—the state has more than 4% Christians most of whom are tribals.
    • Some who still follow the Sarna faith believe the converted tribals are taking the benefits of reservation as a minority, as well as the benefits, are given to Schedule Tribes.
    • They also believe that benefits should be given specifically to them and not to those who have converted.

    What sense does a separate code make?

    • The protection of their language and history is an important aspect of tribals.
    • Between 1871 and 1951, the tribals had a different code. However, it was changed around 1961-62.
    • Experts argue that when today the entire world is focusing on reducing pollution and protecting the environment, it is prudent that Sarna becomes a religious code as the soul of this religion is to protect nature and the environment.

     

    Crack Prelims 2023! Talk to our Rankers

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • 8th Feb 23 | Prelims Daily with Previous Year Questions

    8th Feb 23 | Prelims Daily with Previous Year Questions

    [WpProQuiz 1235]

    [WpProQuiz_toplist 1235]

    UPSC 2023 countdown has begun! Get your personal guidance plan now! (Click here)

  • Existing income limit for OBCs Non-Creamy Layer is ‘sufficient’: Centre

    obc

    The existing income limit for determining the non-creamy layer (NCL) among Other Backward Classes (OBC) is considered sufficient and hence there is no proposal currently to revise the said income limit, informed the Centre.

    What is Non-Creamy Layer in OBCs?

    • Creamy Layer is a concept that sets a threshold within which OBC reservation benefits are applicable.
    • While there is a 27% quota for OBCs in government jobs and higher educational institutions, those falling within the “creamy layer” cannot get the benefits of this quota.

    Basis of Creamy Layer

    • It is based on the recommendation of the Second Backward Classes Commission (Mandal Commission).
    • The government in 1990 had notified 27% reservation for Socially and Educationally Backward Classes (SEBCs) in vacancies in civil posts and services that are to be filled on direct recruitment.
    • After this was challenged, the Supreme Court in the Indira Sawhney case (1992) upheld 27% reservation for OBCs, subject to exclusion of the creamy layer.

    How is it determined?

    • Following the order in Indra Sawhney, an expert committee headed by Justice (retired) R N Prasad was constituted for fixing the criteria for determining the creamy layer.
    • In 1993, the Department of Personnel and Training (DoPT) listed out various categories of people of certain rank/status/income whose children cannot avail the benefit of OBC reservation.
    1. For those not in government, the current threshold is an income of Rs 8 lakh per year.
    2. For children of government employees, the threshold is based on their parents’ rank and not income.
    3. For instance, an individual is considered to fall within the creamy layer if either of his or her parents is in a constitutional post; if either parent has been directly recruited in Group-A; or if both parents are in Group-B services.
    4. If the parents enter Group-A through promotion before the age of 40, their children will be in the creamy layer.
    5. Children of a Colonel or higher-ranked officer in the Army, and children of officers of similar ranks in the Navy and Air Force, too, come under the creamy layer.
    6. Income from salaries or agricultural land is not clubbed while determining the creamy layer (2004).

    What is happening now?

    • Many communities have raised questions about the pending proposal for revising the criteria.
    • They have asked whether the provision of a creamy layer for government services only for OBC candidates is rational and justified.
    • The National Commission for Backward Classes (NCBC) has consistently maintained from as early as 2011 that the income limit should be raised to at least ₹10 lakh.

    Has it ever been revised?

    • Other than the income limit, the current definition of the creamy layer remains the same as the DoPT had spelled out in 1993 and 2004.
    • The income limit has been revised over the years.
    • No other orders for the definition of the creamy layer have been issued.
    • While the DoPT had stipulated that it would be revised every three years, the first revision since 1993 (Rs 1 lakh per year) happened only in 2004 (Rs 2.50 lakh), 2008 (Rs 4.50 lakh), 2013 (Rs 6 lakh), and 2017 (Rs 8 lakh).
    • It is now more than five years since the last revision.

    What is the current NCL limit?

    • Currently, an annual income of both parents of ₹8 lakh or more excludes OBCs from availing reservation.
    • It puts them in the creamy layer category, leaving benefits only for those earning less than that.

     

    Crack Prelims 2023! Talk to our Rankers

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • CAR T-Cell Therapy for treatment of Cancer

    cancer

    The new CAR T-Cell Immunotherapy holds promise for Ovarian Cancer patients over other forms of treatment.

    What are CAR T-cells?

    • Chimeric antigen receptor (CAR) T-cell therapies represent a quantum leap in the sophistication of cancer treatment.
    • Unlike chemotherapy or immunotherapy, which require mass-produced injectable or oral medication, CAR T-cell therapies use a patient’s own cells.
    • They are modified in the laboratory to activate T-cells, a component of immune cells, to attack tumours.
    • These modified cells are then infused back into the patient’s bloodstream after conditioning them to multiply more effectively.
    • The cells are even more specific than targeted agents and directly activate the patient’s immune system against cancer, making the treatment more clinically effective.
    • This is why they’re called ‘living drugs’.

    How does the therapy work?

    • In CAR T-cell therapy, the patient’s blood is drawn to harvest T-cells which are immune cells that play a major role in destroying tumour cells.
    • Researchers modify these cells in the laboratory so that they express specific proteins on their surface, known as chimeric antigen receptors (CAR).
    • They have an affinity for proteins on the surface of tumour cells.
    • This modification in the cellular structure allows CAR T-cells to effectively bind to the tumour and destroy it.
    • The final step in the tumour’s destruction involves its clearance by the patient’s immune system.

    Where is it used?

    • As of today, CAR T-cell therapy has been approved for leukaemias (cancers arising from the cells that produce white blood cells) and lymphomas (arising from the lymphatic system).
    • These cancers occur through the unregulated reproduction of a single clone of cells, that is, following the cancerous transformation of a single type of cell, it produces millions of identical copies.
    • As a result, the target for CAR T-cells is consistent and reliable.
    • CAR T-cell therapy is also used among patients with cancers that have returned after an initial successful treatment or which haven’t responded to previous combinations of chemotherapy or immunotherapy.
    • Its response rate is variable. In certain kinds of leukaemias and lymphomas, the efficacy is as high as 90%, whereas in other types of cancers it is significantly lower.

    How widespread is its use?

    • The complexity of preparing CAR T-cells has been a major barrier to their use.
    • The first clinical trial showing they were effective was published almost a decade ago; the first indigenously developed therapy in India was successfully performed only in 2022.
    • The technical and human resources required to administer this therapy are also considerable.
    • Treatments in the US cost more than a million dollars.
    • Trials are underway in India, with companies looking to indigenously manufacture CAR T-cells at a fraction of the cost.
    • The preliminary results have been encouraging.

    What are conventional cancer therapies?

    • The three major forms of treatment for any cancer are surgery (removing the cancer), radiotherapy (delivering ionising radiation to the tumour), and systemic therapy (chemotherapy- administering medicines that act on the tumour only).
    • Surgery and radiotherapy have been refined significantly over time whereas advances in systemic therapy have been unparalleled.
    • A new development on this front, currently holding the attention of many researchers worldwide, is the CAR T-cell therapy.

    Will this therapy be expensive in India as well?

    • In India, introducing any new therapy faces the twin challenges of cost and value.
    • Critics argue that developing facilities in India may be redundant and/or inappropriate as even when it becomes cheaper, CAR T-cell therapy will be unaffordable to most Indians.
    • Those who are affluent and require the therapy currently receive it abroad anyway.
    • While this is true, it may be the right answer to the wrong question.
    • Having access to a global standard of care is every patient’s right; how it can be made more affordable can be the next step.

     

    Crack Prelims 2023! Talk to our Rankers

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

  • What are Primary Agricultural Credit Societies (PACS)?

    pacs

    The Union Budget has announced Rs 2,516 crore for computerization of 63,000 Primary Agricultural Credit Societies (PACS) over the next five years.

    Primary Agricultural Credit Societies (PACS)

    • PACS are village level cooperative credit societies that serve as the last link in a three-tier cooperative credit structure headed by the State Cooperative Banks (SCB) at the state level.
    • Credit from the SCBs is transferred to the district central cooperative banks, or DCCBs, that operate at the district level.
    • The DCCBs work with PACS, which deal directly with farmers.
    • Since these are cooperative bodies, individual farmers are members of the PACS, and office-bearers are elected from within them.
    • A village can have multiple PACS.

    What is its lending mechanism?

    • PACS are involved in short term lending — or what is known as crop loan.
    • At the start of the cropping cycle, farmers avail credit to finance their requirement of seeds, fertilisers etc.
    • Banks extend this credit at 7 per cent interest, of which 3 per cent is subsidised by the Centre, and 2 per cent by the state government.
    • Effectively, farmers avail the crop loans at 2 per cent interest only.

    NPAs with PACS

    • NABARD’s annual report of 2021-22 shows that 59.6 per cent of the loans were extended to the small and marginal farmers.
    • A report published by the Reserve Bank of India on December 27, 2022 put the number of PACS at 1.02 lakh.
    • At the end of March 2021, only 47,297 of them were in profit.
    • The same report said PACS had reported lending worth Rs 1,43,044 crore and NPAs of Rs 72,550 crore. Maharashtra has 20,897 PACS of which 11,326 are in losses.

    Why are PACS attractive?

    • The attraction of the PACS lies in the last mile connectivity they offer.
    • For farmers, timely access to capital is necessary at the start of their agricultural activities.
    • PACS have the capacity to extend credit with minimal paperwork within a short time.

     

    Crack Prelims 2023! Talk to our Rankers

    (Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

More posts