💥Join UPSC 2027,2028 Mentorship (August Batch) + XFactor Notes & Microthemes PDF
Talk to Mentor

Civilsdaily

Login

Subject: Economics

  • US Bitcoin Strategic Reserve

    Why in the News?

    Bitcoin surged to a record high of over $107,000 after President-elect Donald Trump reaffirmed plans to create a US bitcoin reserve, boosting investor excitement.

    Do you know?

    • The legal status of cryptocurrency in India is uncertain.
      • RBI has warned against cryptocurrencies, citing risks to investors and confirming they are not legal tender. 
    • In 2018, the Supreme Court overturned an RBI ban on financial institutions dealing with cryptocurrencies.
    • In the 2022-23 Union Budget, the Government of India announced a 30% tax on cryptocurrency transfers.
    • Additionally, a panel has been formed to explore blockchain technology and the potential for a Central Bank Digital Currency (CBDC).

    What is a Strategic Reserve?

    Details
    • A strategic reserve is a stockpile of critical resources, used in times of crisis or disruptions in supply.
    • Examples:
      • US Strategic Petroleum Reserve: Largest global emergency oil stockpile, created in 1975 after the 1973-74 oil embargo.
      • Canada’s Maple Syrup Reserve: The only global strategic reserve for maple syrup.
      • China’s Reserves: Includes resources like metals, grains, and pork.
    How Would a U.S. Strategic Bitcoin Reserve Work?
    • Establishing the Reserve: Unclear if it would require executive powers or Congress approval. Some suggest an executive order to manage bitcoin through the U.S. Treasury’s Exchange Stabilization Fund.
    • Content of the Reserve: Includes seized bitcoin (200,000 tokens, worth approx. $21 billion).
    • Additional Purchases: Possible purchase of more bitcoin from the open market.
    Benefits and Risks of a Bitcoin Reserve Benefits:

    • Global Market Dominance: Could enhance U.S. control over the global bitcoin market, especially against competitors like China.
    • Economic Advantages: Could reduce U.S. fiscal deficit and strengthen the U.S. dollar.

    Risks:

    • Volatility: Bitcoin’s value is uncertain due to volatility and lack of intrinsic use.
    • Security: Vulnerability to cyber-attacks and market fluctuations.

  • [17th December 2024] The Hindu Op-ed: Levy a higher GST rate on tobacco, sugared beverages

    PYQ Relevance:

    Q) “Besides being a moral imperative of a Welfare State, primary health structure is a necessary precondition for sustainable development.” Analyse. (UPSC CSE 2021)

    Mentor’s Comment: UPSC mains have always focused on major issues like the Conflict of interest in the public sector (2017) and Life Expectancy (2022).

    Tobacco is responsible for approximately 1 million deaths annually in India, accounting for about 17.8% of total deaths in the country. This includes deaths from both direct tobacco use and secondhand smoke exposure.

    The proposal to levy a higher Goods and Services Tax (GST) rate on tobacco products and sugared beverages has sparked significant discussion in India. This editorial explores the implications of such a move, the current tax structure, and the anticipated outcomes of the proposed changes.

    _

    Let’s learn!

    Why in the News?

    The proposal to levy a higher Goods and Services Tax (GST) rate on tobacco products and sugared beverages has sparked significant discussion in India.

    What is National Calamity Contingent Duty (NCCD)?

    • It is a type of excise duty imposed by the Indian government on specific manufactured goods, particularly those considered harmful to public health, such as tobacco products and certain beverages.
    • Established under Section 136 of the Finance Act, 2001, NCCD is intended to generate revenue that can be utilized for disaster relief and other national calamity responses.
    • In the Union Budget for 2023-24, the government proposed increasing NCCD rates by approximately 16% for specified cigarettes, reflecting ongoing efforts to regulate tobacco consumption through higher taxation.

    Background of the news:

    • Over the past seven years since the Goods and Services Tax (GST) was introduced in India, there have been a few significant increases in GST rates for harmful products like tobacco and sugar-sweetened beverages.
    • Apart from two small hikes in the National Calamity Contingent Duties (NCCD) on tobacco, the tax rates have largely remained unchanged. This lack of increase has made these products more affordable, which undermines efforts to reduce their consumption.
    • In this context, the recent proposal by the Group of Ministers (GoM) to raise the highest GST rate on tobacco and sugar-sweetened beverages from 28% to 35% is a positive development. This increase could help discourage the consumption of these harmful products.
    • However, it is important to note that additional tax reforms are necessary to effectively address the public health issues and fiscal challenges associated with tobacco and sugary drinks.

    What is the current GST structure?

    • Under the existing GST framework, tobacco products and aerated beverages are taxed at a base rate of 28%, with additional cess rates that can range significantly.
    • For tobacco, these cesses can be as high as 290%, making it one of the most heavily taxed sectors in India.
    • Aerated beverages also face a 12% compensation cess on top of the standard GST rate, leading to a total tax burden that is among the highest globally.

    What is the Rationale behind the recent Proposal?

    • Public Health Concerns: Higher taxes on tobacco and sugary drinks are often justified by their negative health impacts. Increasing GST rates could deter consumption and promote healthier choices among consumers.
    • Revenue Generation: The Indian government is looking for ways to bolster its revenue streams, especially in light of potential shortfalls from other sectors. By raising taxes on these “sin products,” it aims to offset losses from reductions in taxes on essential goods and services, such as health insurance premiums.
    • Alignment with Global Practices: Many countries impose high taxes on tobacco and sugary beverages as part of public health strategies. By following suit, India could align itself with global best practices aimed at reducing the consumption of harmful products.

    What were the Market reactions to the potential GST Increase? 

    • Stock Price Impact: Following the news, ITC’s shares fell by about 3%, while Varun Beverages dropped by 5%. This decline reflects investor concerns over how higher taxes might affect profitability.
    • Historical Performance: Both companies had previously enjoyed strong stock performance, with ITC’s stock rising 110% and Varun Beverages increasing by 424% in recent years.
      • However, the prospect of increased taxation has caused a correction, with both stocks down around 12% from their recent highs.
    • Analyst Insights: Analysts believe that while higher taxes could reduce sales volumes, they might also boost government revenues if managed well. 

    Way Forward:

    • Engage with Stakeholders: Regular consultations with industry stakeholders, including manufacturers and health experts, can provide valuable insights into the potential impacts of tax changes and help create balanced policies that consider both public health and economic factors.
    • Consider Broader Tax Reforms: The government could explore broader tax reforms that align with health objectives, such as revising tax structures for other products or services that impact public health, ensuring a comprehensive approach to taxation.
    • Implement the Proposed GST Increase: The government should proceed with the Group of Ministers (GoM) recommendation to raise the GST on tobacco and aerated beverages from 28% to 35%. This move aims to discourage the consumption of these harmful products while increasing government revenue.
    • Enhance Public Awareness Campaigns: Alongside tax increases, the government can launch public health campaigns to educate citizens about the dangers of tobacco and excessive sugar consumption. This could further support efforts to reduce demand for these products.
    https://www.thehindu.com/opinion/op-ed/levy-a-higher-gst-rate-on-tobacco-sugared-beverages/article68992871.ece

  • India’s wage challenge has shifted from chronic to immediate

    Why in the news? 

    India’s Rural low wages pose a significant challenge, but adopting a ground-level perspective on employers’ daily realities highlights policy measures to increase the number of high-productivity employers.

    What are the root causes of the current wage stagnation in India?

    • Economic Structure: The shift from agriculture to non-farm jobs has not been accompanied by a corresponding increase in productivity. Despite significant government spending, the flow of jobs since 1991 has not reduced farm employment, leading to wage stagnation in rural areas.
    • Skill Mismatch: There is a disparity between the skills available in the labour market and those demanded by employers. Many workers remain under-skilled for the higher-paying jobs that are available, perpetuating low wages.
    • Economic growth vs wage stagnation: Despite India’s GDP growing at a strong rate, averaging 7.8% in recent years, this growth has not led to substantial wage increases for rural workers. In fact, real wages, when adjusted for inflation, have either remained stagnant or decreased. This disparity underscores a crucial issue: the underlying nature of economic growth.
    • Shift to Capital-Intensive Growth: India’s recent economic growth is driven by capital-intensive sectors, which create fewer jobs, limiting the demand for rural labour and keeping wages low.
    • Inflation vs. Wage Growth: While nominal wages have risen, inflation has outpaced wage growth, reducing the real purchasing power of rural workers. For example, rural wages grew by 5.2% nominally, but real wage growth was negative at -0.4%.
    • Increased Labour Supply: Government schemes like Ujjwala and Har Ghar Jal have increased rural women’s workforce participation, intensifying competition for jobs and putting downward pressure on wages.
    • Agricultural Wage Stagnation: Despite steady agricultural growth (4.2% and 3.6% in recent years), wages in agriculture have not increased proportionally, limiting overall wage growth in rural areas.

    How can India effectively implement a living wage system?

    A living wage system ensures workers earn enough to meet basic needs like food, housing, healthcare, and education, enabling a decent standard of living beyond mere subsistence wages.

    • Policy Framework: Establishing a clear definition of what constitutes a living wage based on local cost of living metrics is essential. This framework should be adaptable to different regions and sectors.
    • Incentives for Employers: Providing tax breaks or subsidies for businesses that pay living wages can encourage compliance and support workers’ livelihoods.
    • Strengthening Labor Rights: Ensuring robust enforcement of labor laws that protect workers’ rights to fair wages and safe working conditions is crucial for implementing a living wage system effectively.
    • Public Awareness Campaigns: Educating both employers and employees about the benefits of a living wage can help shift perceptions and practices within the workforce.

    What are the wage disparities in India?

    • Gender Wage Gap: According to the Global Gender Gap Index 2024, Indian women earn only ₹40 for every ₹100 earned by men, highlighting a significant gender pay disparity.
      • The economic gender parity level in India is recorded at 39.8%, indicating that while some progress has been made, substantial gaps remain in economic participation and remuneration between genders.
    • Regional Wage Disparities: The average daily wage for casual workers in rural areas is approximately ₹104, significantly lower than the national average of ₹247 per day for all workers.
    • Wage Inequality Metrics: The Gini coefficient for wages in India stands at 0.49, indicating a high level of wage inequality. The D9/D1 wage ratio, which compares the earnings of the top 10% to the bottom 10%, is 6.7, underscoring the stark contrast in earnings across different segments of the workforce.

    Note: The D9/D1 wage ratio is a measure of income inequality that compares the earnings of the top 10% of wage earners (D9) to the earnings of the bottom 10% (D1) within a given population

    What policy measures can be taken to address wage disparities and ensure fair compensation? (Way forward)

    • Rationalisation of Regulations: Streamlining regulatory frameworks to reduce bureaucratic hurdles can encourage entrepreneurship and job creation. This includes removing unnecessary jail provisions that deter business operations.
    • Investing in Human Capital: Prioritizing skill development programs aligned with market demands can boost employability and empower workers to secure higher-paying jobs.
    • Encouraging Non-Farm Employment: Policies should focus on fostering private, productive non-farm jobs through digitisation and formalization, paving the way for better wages.
    • Strengthening Redistribution Mechanisms: Adopting progressive taxation on higher profits can fund social programs designed to uplift wage levels across different sectors.
    • Fostering Long-Term Economic Planning: Crafting a comprehensive economic strategy aligned with labour market needs is essential for ensuring sustainable wage growth and effectively addressing disparities.

    Mains PYQ: 

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

  • The hidden cost of greenwashing the Indian Railways

    Why in the news?

    The ‘Mission 100% Electrification’ project is like chasing an unrealistic dream of becoming a green railway, leading to many usable diesel locomotives becoming unnecessary.

    What are the key points of the report? 

    • Export of Repurposed Locomotives: RITES Ltd. is exporting six refurbished broad-gauge diesel locomotives to African railways after complex gauge conversion, marking a first in such re-engineering.
    • Idle Diesel Locomotives: Around 760 diesel locomotives, with over 60% still serviceable, are redundant due to the rapid electrification of the railway network.
    • Limited Environmental and Economic Gains: Electrification reduces only 2% of diesel consumption, while coal-powered electricity (50% of the total) negates environmental benefits, maintaining reliance on polluting sources.
    • Strategic Contradictions: Despite targeting 100% electrification, Indian Railways plans to retain 3,500 diesel locomotives for disaster management and traffic needs, undercutting “green” claims.
    • Policy and Financial Wastage: The rushed electrification drive has led to premature asset redundancy, wasting public funds without ensuring environmental or financial sustainability.

    What constitutes greenwashing in the context of Indian Railways?

    • Misleading Claims of Environmental Benefits: The Indian Railways’ push for 100% electrification is framed as a move towards a “green railway.” However, this initiative overlooks the fact that a significant portion of the electricity generated in India comes from coal-fired power plants, which are environmentally harmful.
      • Thus, the transition from diesel to electric locomotives may merely shift pollution from one source to another without achieving genuine environmental benefits.
    • Redundancy of Serviceable Assets: The decision to electrify the railway network has led to the premature stabling of functional diesel locomotives, many of which have considerable residual life left.
      • This not only represents a waste of resources but also raises questions about the actual motivations behind electrification efforts.
    • Focus on Slogans Over Substance: The Mission 100% Electrification initiative appears to prioritize headline-grabbing goals over comprehensive and well-thought-out policies.
      • This approach can be seen as greenwashing, as it promotes an image of environmental responsibility while failing to address the underlying issues related to energy sourcing and pollution.

    How do greenwashing practices impact public perception and trust?

    • Erosion of Credibility: When organizations like Indian Railways promote initiatives that are not genuinely sustainable, it can lead to public scepticism regarding their commitment to environmental issues.
    • Misallocation of Resources: Public perception may shift towards viewing government initiatives as wasteful or misguided, leading to decreased support for future projects that could have real environmental benefits.
    • Increased Public Scrutiny: Greenwashing practices often lead to increased scrutiny from activists, media, and the public.
      • As stakeholders demand transparency and accountability, organizations may face backlash for failing to deliver on their environmental promises.

    What regulatory measures can be implemented to combat greenwashing in the transportation sector? (Way forward)

    • Clear Guidelines for Environmental Claims: Establishing stringent regulations that define what constitutes legitimate environmental benefits can help prevent misleading claims.
      • Organizations should be required to substantiate their claims with verifiable data and transparent reporting.
    • Mandatory Sustainability Reporting: Implementing requirements for regular sustainability audits and reporting can ensure that transportation entities disclose their actual environmental impact, including emissions data and energy sources used.
    • Public Accountability Mechanisms: Creating independent bodies to assess and review claims made by transportation sectors regarding sustainability initiatives can enhance accountability.
      • These bodies could provide certifications or ratings based on genuine environmental performance rather than promotional claims.
    • Incentives for Genuine Sustainability Efforts: Providing financial incentives or recognition for organizations that implement effective sustainability measures can encourage genuine efforts rather than superficial compliance with green initiatives.

    Mains PYQ: 

    Q Why is Public Private Partnership (PPP) required in infrastructural projects? Examine the role of PPP model in the redevelopment of Railway Stations in India. (2022)

  • [pib] Telecom Technology Development Fund (TTDF) Program

    Why in the News?

    The Telecom Technology Development Fund (TTDF) has facilitated a collaboration between the Centre for Development of Telematics (C-DOT) and Trois Infotech on the development of “Face Recognition Using Drone” technology.

    About Telecom Technology Development Fund (TTDF):

    Details
    • Launched on October 1, 2022 under the Universal Service Obligation Fund (USOF), Ministry of Telecommunications.
    • Supports indigenous telecom technologies, especially for rural communication needs.

    About USOF (Universal Service Obligation Fund) 

    • USOF was established in April 2002 under the Indian Telegraph (Amendment) Act 2003.
    • Objective: To provide financial support for telecom services in rural and remote areas that are commercially unviable.
    • A non-lapsable fund, with the levy amount credited for continuous use.
    • Operates as an attached office of the Department of Telecom, headed by an administrator appointed by the Central Government.
    • Initially focused on providing basic telecom services in rural areas at affordable prices.
    • Expanded scope to include mobile services, broadband connectivity, and infrastructure development in rural and remote areas.
    Aims and Objectives
    • Encourage Innovation: Create synergies across stakeholders (startups, R&D, academia) and focus on rural-specific telecom solutions.
    • Bridge the Digital Divide: Provide affordable telecom solutions for rural areas and enhance connectivity.
    • Intellectual Property Creation: Support R&D projects contributing to patentable technologies.
    Key Features and Structural Mandate Funding Mechanism:

    • Grants for Indian startups, research institutes, academia, and telecom companies for R&D on rural telecom solutions.
    • Managed by Department of Telecommunications (DoT) with USOF as the administering body.

    Features:

    • Incentives for Startups: Provides financial incentives for telecom R&D projects from prototype to commercialization.
    • Collaborative Framework: Promotes collaboration between stakeholders such as startups, telecom companies, universities, and R&D centers.
    • PoC and Pilot Support: Encourages proof of concept testing and pilots to validate technological solutions.

     

    PYQ:

    [2019] In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.?

    1. Ad Hoc Committees set up by the Parliament
    2. Parliamentary Department Related Standing Committees
    3. Finance Commission
    4. Financial Sector Legislative Reforms Commission
    5. NITI Aayog

    Select the correct answer using the code given below:

    (a) 1 and 2
    (b) 1, 3 and 4
    (c) 3, 4 and 5
    (d) 2 and 5

  • Employees’ Pension Scheme (EPS)

    Why in the News?

    The Parliamentary Standing Committee on Labour has recommended increasing the minimum pension of ₹1,000 paid by the Employees’ Provident Fund Organisation (EPFO) under the Employees’ Pension Scheme (EPS).

    About the Employees’ Pension Scheme (EPS):

    Details
    • Introduced in 1995 by the Employees Provident Fund Organisation (EPFO) under the Ministry of Labour and Employment.
    • Provides pension benefits to employees in the organized sector.
    Aims and Objectives
    • To provide pension benefits to employees in the organized sector.
    • Ensures financial security for employees post-retirement or in case of disability or death.
    Features and Significance
    • Employee and Employer Contribution: Both contribute 12% of the salary towards the EPF.
    • Employer’s Contribution: 8.33% of the employer’s contribution goes towards the pension fund.
    • Union Government Contribution: 1.16% of the employee’s basic salary is contributed to the pension fund.
    • Pension Fund Setup: The fund is created by allocating 8.33% of the employer’s contribution from the EPF corpus.
    Structural Mandate and Implementation Supreme Court in November 2022, the court upheld the Employees’ Pension (Amendment) Scheme, 2014, extending the deadline for opting for the new scheme by 4 months.

    • Pre-Amendment Scheme: Pensionable salary was based on the average salary of the last 12 months prior to exiting the pension fund.
    • Post-Amendment Scheme (2014): Pensionable salary based on average salary of the last 60 months (5 years).
    Eligibility Criteria
    • Applies to employees whose basic salary exceeds ₹15,000 per month.
    • Employees who are members of the Employees’ Provident Fund (EPF) and meet the contribution requirements are eligible for the scheme.

     

    PYQ:

    [2021] With reference to casual workers employed in India, consider the following statements:

    1. All casual workers are entitled for Employees Provident Fund coverage.

    2. All casual workers are entitled for regular working hours and overtime payment.

    3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.

    Which of the above statements are correct?

    (a) 1 and 2 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

  • In news: Bharatmala Pariyojana

    Why in the News?

    • Bharatmala Pariyojana is a comprehensive road development project initiated by the Government of India to improve connectivity and reduce logistics costs across the country.
      • The total length covered under the scheme is 34,800 km, with an estimated cost of Rs. 5.35 lakh crore.

    About Bharatmala Pariyojana

    Details
    • Launched to improve road connectivity, enhance freight/passenger movement, and reduce logistics costs.
    • First-phase launched in 2017, covering 34,800 km of roads, with an estimated cost of Rs. 5.35 lakh crore.
      • Long-term goals to be completed in phases over several years.

    Key Components:

    • Economic Corridors & Efficiency: Focus on developing 26,000 km of roads and improving the Golden Quadrilateral and North-South/East-West Corridors.
    • Inter-State & Feeder Routes: 8,000 km of interstate corridors and 7,500 km feeder routes.
    • Border & International Roads: 2,000 km of roads for trade and security.
    • Coastal & Port Connectivity: 2,000 km of roads for better port connectivity.
    • Green-Field Expressways: New expressways to reduce congestion.
    Aims and Objectives
    • 50 national corridors to be constructed, reducing freight traffic congestion and facilitating movement on national highways.
    • 550 districts to be connected nationwide, up from the current 300 districts linked with national highways.
    • Logistic Performance Index (LPI) to be introduced, helping identify trade and logistics challenges and opportunities.
    • Expected to increase employment opportunities for people.
    Funding and Implementation
    • Central Road and Infrastructure Fund (CRF): Created under the Central Road Fund Act, 2000, this non-lapsable fund is used for building and upgrading national highways and other infrastructure, funded through cess on petrol and diesel.
    • Monetization of National Highways: The monetization of existing infrastructure assets is used as a source of funding.
    • Private Sector Investment: Bharatmala invites participation from the private sector for funding and execution of certain projects.
    • Additional Budgetary Support: Funds from additional budgetary allocations by the central government also support the project.

     

    Do you know?

    1. Sagarmala Programme approved in 2015, focuses on port infrastructure development along the 7,516-km coastline through modernisation, mechanisation, and computerisation.
    2. Parvatmala (National Ropeways Development Programme) announced in Union Budget 2022-23 to improve connectivity in hilly areas, under MORTH.
      • Implemented in PPP mode as an ecologically sustainable alternative to conventional roads in challenging terrains.
      • Initial regions: Uttarakhand, Himachal Pradesh, Manipur, Jammu & Kashmir, and North Eastern states.

     

    PYQ:

    [2017] With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct?

    1. It is an organ of NITI Aayog.
    2. It has a corpus of Rs 4,00,000 crore at present.

    Select the correct answer using the code given below:

    (a) 1 only
    (b) 2 only
    (c) Both 1 and 2
    (d) Neither 1 nor 2

  • India launched the World’s first Green Steel Taxonomy

    Why in the News?

    The Ministry of Steel unveiled the world’s first Taxonomy of Green Steel, setting a benchmark for decarbonizing the steel industry.

    About the Green Steel Taxonomy:

    What is it?
    • A formal framework introduced by India to define and promote the production of steel with reduced carbon emissions.
    • It sets clear standards for what constitutes green steel, aiming to help the Indian steel sector transition to low-carbon production methods.
    • The taxonomy defines greenness percentages based on the steel plant’s carbon emission intensity.
    • Seeks to ensure that production aligns with India’s goal of net-zero emissions by 2070.
    Key Features
    • Emissions Threshold: Green Steel is defined based on emissions intensity, with steel plants needing to keep emissions below 2.2 tCO2 per tonne of finished steel (tfs) to be classified as green.
    • Star Rating System:
      1. Five-star: Emission intensity lower than 1.6 t-CO2e/tfs.
      2. Four-star: Emission intensity between 1.6 and 2.0 t-CO2e/tfs.
      3. Three-star: Emission intensity between 2.0 and 2.2 t-CO2e/tfs.
    • Steel exceeding 2.2 t-CO2e/tfs does not qualify as green steel.
    • Emissions Scope: Includes Scope 1, Scope 2, and limited Scope 3 emissions, covering production, agglomeration, beneficiation, and emissions from raw materials and intermediates.
    • Certification: NISST will oversee Measurement, Reporting, and Verification (MRV), issuing greenness certificates and star ratings annually.
    • Review Period: The thresholds for green ratings will be reviewed every 3 years.
    Significance
    • Environmental Sustainability: Aims to reduce carbon footprint in line with national climate goals.
    • Market Creation: Promotes innovation in low-carbon steel products.
    • Global Competitiveness: Ensures Indian steel meets international sustainability standards.
    • Guidance for Industry: Encourages adoption of greener practices.
    Other Key Initiatives
    • National Mission on Green Steel (NMGS): Policy support, funding, and incentives for low-carbon technologies.
    • Electrification of Steelmaking: Use of electric arc furnaces (EAF) to reduce reliance on coal.
    • Hydrogen-based Steelmaking: Exploring hydrogen as a clean fuel.
    • Carbon Capture and Storage (CCS): Technologies to capture CO2 emissions.
    • Public Procurement Policies: Promotes green steel use in public infrastructure.
    • Research and Development: Investments in low-carbon technologies and materials.

     

    PYQ:

    [2020] Steel slag can be the material for which of the following

    1. Construction of base road

    2. Improvement of agricultural soil

    3. Production of cement

    Select the correct answer using the code given below:

    (a) 1 and 2 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3 only

  • [pib] Projects under PM-DevINE Scheme

    Why in the News?

    The Ministry of Development of North-East Region has provided progress update regarding various projects under the Prime Minister’s Development Initiative for North East Region (PM-DevINE) Scheme.

    About the PM-DevINE Scheme:

    Details PM-DevINE is a Central Sector scheme introduced under the Union Budget 2022-23, aiming to drive development in the North Eastern Region (NER) through infrastructure and social projects.
    Aims and Objectives
    • Infrastructure Development: Enhance connectivity and accessibility in NER, aligned with PM GatiShakti.
    • Social Development: Address critical issues and improve residents’ quality of life.
    • Livelihood Opportunities: Focus on creating opportunities for youth and women.
    Structural Mandate and Implementation
    • Nodal Agency: Ministry of Development of North-East Region.
    • Approval: Cabinet approved on 12th October 2022.
    • Central Funding: 100% central funding for projects.
    • Outlay: Rs. 6600 crore for FY 2022-23 to FY 2025-26.
    • Project Sanctions: 35 projects worth Rs. 4857.11 crore sanctioned as of November 2024.
    State-wise Project Analysis
    • Sikkim: Passenger Ropeway System (completed), Skywalk Project (13% completed).
    • Mizoram: Bamboo Link Roads (28% completed).
    • Nagaland: Special Development Projects (30% completed).
    • Assam: School Transformations (55% completed), IT Park Construction (23% completed).
    • Manipur: Infrastructure for Manipur Technical University (25% completed).
    • Tripura: Solar Micro Grid (30% completed), Skill Development Centre (work started).

  • [pib] Yuva Sahakar Scheme

    Why in the News?

    The Ministry of Cooperation, in written reply to a question in the Lok Sabha has informed about the progress of the Yuva Sahakar Scheme.

    Current Financial Details:

    • As of 30th November 2024, the following financial assistance details have been recorded:
      • Sanctioned Amount: ₹4734.97 lakh to cooperatives with 18,915 beneficiary members.
      • Disbursed Amount: ₹294.44 lakh.
      • Sanctioned for 2024: ₹230.61 lakh, with ₹89.88 lakh disbursed.

    About the Yuva Sahakar Scheme:

    Details
    Overview and Objectives
    • Launched in 2018 under the Ministry of Agriculture and Farmers Welfare.
    • Implemented by NCDC (National Cooperative Development Corporation), which operates under the Ministry of Cooperation
    • Goal: To promote the formation of new cooperative societies and encourage innovative ideas from young entrepreneurs.
    • Targets cooperatives that have been operational for at least 3 months.
    NOTE: NCDC was established in 1963 as a statutory Corporation under Ministry of Agriculture & Farmers Welfare.
    Features and Provisions
    • Loan Tenure: Up to 5 years.
    • Interest Subvention: 2% subvention on the applicable interest rate for term loans related to project activities.
    • Subsidy Integration: Loans can be combined with subsidies available under other Government of India schemes.
    • Eligibility: All cooperatives in operation for at least 1 year are eligible for funding based on proposed projects.
    Significance
    • Encourages cooperatives to explore new and innovative areas.
    • Dedicated fund by NCDC for youth cooperatives.
      • Linked to the ₹1000 crore Cooperative Start-up and Innovation Fund (CSIF).
    • Increased funding for cooperatives from North Eastern regions, Aspirational Districts, and those with women, SC/ST, or PwD members.