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Type: Prelims Only

  • Capital Markets: Challenges and Developments

    Minimum Public Shareholding (MPS) Requirement

    Prelims Only | Economics | Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Minimum Public Shareholding (MPS)

    Mains level: Not Much

    The Securities and Exchange Board of India (SEBI) has relaxed the 25 per cent minimum public shareholding norm and advised exchanges not to take penal action till August 2020 in case of non-compliance.

    A statement based question can be asked about the SEBI in the prelim asking-

    If it is a statutory or quasi-judicial body ; Scope of its regulation; Appointment of its chairman etc..

    What is a Public Shareholding Company?

    • A Public Shareholding Company is a company whose capital is divided into shares of equal value, which are transferable.
    • Shareholders of a Public Shareholding Company are not liable for the company’s obligations except for the amount of the nominal value of the shares for which they subscribe.

    What is MPS requirement?

    • The 25 per cent MPS norms were introduced in 2013, whereby no listed company was permitted to have more than 75 per cent promoter stake.
    • The rules were aimed at improving liquidity and better stock price discovery by making higher float available with public.
    • The average promoter holding in India is among the highest globally.
    • Last year, the government had proposed to increase the minimum public float from the current 25 per cent to 35 per cent. It had met with opposition, forcing the government to drop the plan.

    Why ease MPS norms?

    • The Sebi move is aimed at easing such compliance rules amid the disruptions caused by the coronavirus pandemic.
    • The decision has been taken after receiving requests from listed entities and industry bodies as well as considering the prevailing business and market conditions.
    • As per the norms, exchanges can impose a fine of up to Rs 10,000 on companies for each day of non-compliance with MPS requirements.
    • Besides, exchanges can intimate depositories to freeze the entire shareholding of the promoter and promoter group. This circular will come into force with immediate effect.

    Back2Basics: Securities and Exchange Board of India (SEBI)

    • The SEBI is the regulator of the securities and commodity market in India.
    • It was first established in 1988 as a non-statutory body for regulating the securities market.
    • It became an autonomous body on 12 April 1992 and was accorded statutory powers with the passing of the SEBI Act 1992.
    • SEBI has to be responsive to the needs of three groups, which constitute the market:

    1) issuers of securities

    2) investors

    3) market intermediaries

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  • UDAY Scheme for Discoms

    Fiscal support to the power sector

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: UDAY scheme

    Mains level: UDAY scheme, its success and failures

    Part of the package announced by Finance Minister was a Rs 90,000-crore liquidity injection into power distribution companies (or discoms).

    Practice question:

    Ujwal DISCOM Assurance Yojana (UDAY) has failed to turn around the precarious financial position of state power DISCOMs in India. Discuss.

    Fiscal push for DISCOMs

    • The move is aimed at helping the discoms clear their dues with gencos (or electricity generation companies), who in turn can clear their outstanding dues with suppliers, such as coal miners, easing some of the working capital woes of Coal India Ltd and contract miners.
    • This is subject to the condition that the Centre will act as guarantor for loans given by the state-owned power finance companies such as PFC and REC Ltd to the discoms.

    Why was this needed?

    • The primary trigger is the poor financial condition and revenue collection abilities of most state discoms.
    • This is despite several interventions, including a scheme called UDAY that was launched in 2015 to fix the problems of a sector where the upstream side (electricity generation) was drawing investments even as the downstream (distribution) side was leaking.

    How do the DISCOMs work?

    To understand how the sector works, we have to imagine a three-stage process.

    • First stage: Electricity is generated at thermal, hydro or renewable energy power plants, which are operated by either state-owned companies or private companies.
    • Second stage: The generated electricity then moves through a complex transmission grid system comprising electricity substations, transformers, and power lines that connect electricity producers and the end-consumers.
    • The entire electricity grid consists of hundreds of thousands of miles of high-voltage power lines and millions of miles of low-voltage power lines with distribution transformers that connect thousands of power plants to millions of electricity customers all across the country.
    • Third stage: This last-mile link is where discoms come in, operated largely by state governments. However, in cities such as Delhi, Mumbai, Ahmedabad, and Kolkata, private entities own the entire distribution business or parts of it.

    Why there is a problem?

    • Discoms essentially purchase power from generation companies through power purchase agreements (PPAs), and then supply it to their consumers (in their area of distribution).
    • The key issue with the power sector currently is the continuing problem of the poor financial situation of state discoms.
    • This has been affecting their ability to buy power for supply, and the ability to invest in improving the distribution infrastructure. Consequently, this impacts the quality of electricity that consumers receive.

    There are two fundamental problems here:

    1) Lack of competitiveness

    • One, in India, electricity price for certain segments such as agriculture and the domestic category (what we use in our homes) is cross-subsidised by the industries (factories) and the commercial sector (shops, malls).
    • This affects the competitiveness of the industry.

    2) Transmission and distribution losses

    • There is the problem of AT&C (aggregate transmission and distribution losses), which is a technical term that stands for the gap in the bills that it raises and the final collection process from end-consumers.
    • As a result, the discoms are perennially short of funds, even to pay those supplying power to them, resulting in a cascading impact up the value chain.

    Back2Basics: UDAY Scheme

    https://www.civilsdaily.com/news/uday-scheme-for-financial-turnaround-of-power-distribution-companies/

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  • Promoting Science and Technology – Missions,Policies & Schemes

    International Day of Light and its significance

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

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: LASER, LIDAR

    Mains level: NA

    The UN marks the International Day of Light (IDL) — an annual initiative held globally to raise awareness on the critical role played by light-based technologies in everyday life.

    The IDL as mentioned in the news creates no scope for a possible prelim question, but the purpose behind its celebration does.  i.e. LASER technology. LIDAR is the latest development in the LASER technology. UPSC may puzzle you here by asking the working principle of LIDAR.

    International Day of Light (IDL)

    • The IDL is administered from the International Basic Science Programme (IBSP) of UNESCO, and its Secretariat is located at the Abdus Salam International Centre of Theoretical Physics (ICTP) at Trieste, Italy.
    • The IDL highlights the contribution of such technologies in various avenues such as science, technology, art, and culture, thus helping achieve the UNESCO goals of education, equality, and peace.
    • The day selected, May 16, marks the anniversary of the first successful operation of the LASER in 1960 by physicist and engineer Theodore Maiman.
    • The LASER is a perfect example of how a scientific discovery can yield revolutionary benefits to society in communications, healthcare and many other fields.

    Why is the IDL celebrated?

    • In 2015, to raise global awareness of the achievements of light science and its applications, the UN observed the International Year of Light and Light-based Technologies 2015 (IYL 2015).
    • The event helped establish links and collaborations between decision-makers, industry leaders, scientists, artists, social businesses, NGOs, and the public at large.
    • Following the success of IYL 2015, Ghana, Mexico, New Zealand and Russia placed a resolution before the UNESCO Executive Board supporting the idea of an International Day of Light.
    • It was adopted on September 19, 2016, at the Board’s 200th session at the UNESCO HQ in Paris, France.
    • The Board decision was endorsed by the UNESCO General Conference at its 39th session on November 7, 2017, and the first IDL was held on May 16, 2018.

    Back2Basics: LASER

    • A laser is a device that emits light through a process of optical amplification based on the stimulated emission of electromagnetic radiation.
    • It is an acronym for “light amplification by the stimulated emission of radiation.
    • The laser stimulates atoms or molecules to emit light at particular wavelengths and amplifies that light, typically producing a very narrow beam of radiation.
    • The emission generally covers an extremely limited range of visible, infrared, or ultraviolet wavelengths.
    • Many different types of lasers have been developed, with highly varied characteristics.
    • A laser is widely used in industrial cutting, surgical removal of tissues etc.
    • LIDAR is the most famous application of LASERs.

    LiDAR (Light Detection And Ranging)

    • It is a remote sensing method that uses light in the form of a pulsed laser to measure ranges (variable distances) to the Earth.
    • It bounces pulsed laser light off the ground, revealing contours hidden by dense foliage.
    • These light pulses—combined with other data recorded by the airborne system— generate precise, three-dimensional information about the shape of the Earth and its surface characteristics.
    • LIDAR systems allow scientists and mapping professionals to examine both natural and manmade environments with accuracy, precision, and flexibility.
    • A LIDAR instrument principally consists of a laser, a scanner, and a specialized GPS receiver.
    • Airplanes and helicopters are the most commonly used platforms for acquiring LIDAR data over broad areas.

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  • Foreign Policy Watch: India – EU

    Mapping: Baltic Travel Bubble

    Prelims Only | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Baltic Travel Bubble

    Mains level: Travel restriction in times of COVID outbreak

    The Baltic countries of Estonia, Latvia and Lithuania have opened their borders to one another, creating a coronavirus “travel bubble” with an improvised idea to boost travel into their countries.

    Mark the following things on Map:

    1. Baltic Sea and its bordering nations

    2. Irben Strait

    3. Gulf of Riga

    4. Gulf of Finland

    Baltic Travel Bubble

    • The ‘Baltic travel bubble’ aims to facilitate the citizens of these three countries to travel within the region without hassles.
    • However, those who are coming from any other than these three countries would be required to follow self-isolation guidelines and stay in quarantine for exactly 14 days.
    • During the epidemic, Estonia and Lithuania closed their borders to non-citizens and all three nations placed mandatory quarantines for those entering for reasons related to non-work activities.
    • The region has been part of the European Union since 2004 and since 2007 has been a member of the European Schengen Free Travel Area.

    Significance of the travel ease

    • The Baltic nations have shown trust in each other’s healthcare system and have concluded that they have been able to tackle the coronavirus outbreak efficiently.
    • For Asian countries including India, these developments can provide interesting pointers when lockdown relaxations pertaining to travel and flights are being considered.

    Bonus: Try this question from CSP 2011

    Between India and East Asia, the navigation-time and distance can be greatly reduced by which of the following?

    1. Deepening the Malacca straits between Malaysia and Indonesia.

    2. Opening a new canal across the Kra isthmus between the Gulf of Siam and Andaman Sea.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

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  • New Species of Plants and Animals Discovered

    Species in news: Troglomyces twitteri

    Prelims Only | Enviro & Biodiversity | Mains Paper 3:

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Troglomyces twitteri

    Mains level: NA

    A new species has just been identified on an old image on Twitter. It is named as Troglomyces twitteri.

    The species Troglomyces twitteri has something unique in its name. UPSC may ask a straight forward question like – The specie Troglomyces twitteri recently seen in news is a- (a) Algae (b) Fungi (c) Fish (d) Sea Grass …….

    Troglomyces twitteri

    • Troglomyces twitteri is a type of parasitic fungus.
    • It belongs to an order called Laboulbeniales — tiny fungal parasites that attack insects and millipedes.
    • These fungi live on the outside of host organisms; in this case, on the reproductive organs of millipedes.
    • Laboulbeniales were first discovered in the middle of the 19th century.

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  • Foreign Policy Watch: India-China

    Mapping: Pangong Tso Lake

    Prelims Only | International Relations | Mains Paper 2: India & Its Neighborhood – Relations

    Helicopters of the Chinese Army came close to the border during the face-off with the Indian Army near Pangong Tso Lake in Eastern Ladakh last week.

    Keep a watch on some facts related to the Pangong Tso Lake like nearby rivers, passes, Ramsar status etc.

    Aircraft restricted near LAC

    • As per existing agreements between India and China, operation of fighter aircraft and armed helicopters is restricted to a distance from the LAC.
    • According to the Agreement on Maintenance of Peace and Tranquility along the LAC in India-China Border Area’ of 1996 combat aircraft (to include fighter, bomber, reconnaissance, military trainer, armed helicopter and other armed aircraft) shall not fly within 10 km of the LAC.

    Pangong Tso Lake

    • Pangong Tso or Pangong Lake is an endorheic lake in the Himalayas situated at a height of about 4,350 m.
    • It is 134 km long and extends from India to the Tibetan Autonomous Region, China.
    • Approximately 60% of the length of the lake lies within the Tibetan Autonomous Region.
    • The lake is 5 km wide at its broadest point. All together it covers 604 sq.km.
    • During winter the lake freezes completely, despite being saline water.
    • It is not a part of the Indus river basin area and geographically a separate landlocked river basin.
    • Formerly, Pangong Tso had an outlet to Shyok River, a tributary of Indus River, but it was closed off due to natural damming.
    • The lake is in the process of being identified under the Ramsar Convention as a wetland of international importance.
    • This will be the first trans-boundary wetland in South Asia under the convention.

    Back2Basics: India-China Border Dispute

    The India-China borders disputes exist between three regions:

    1) J&K region

    • The Aksai Chin sector which originally was a part of the state of Jammu and Kashmir is claimed by China as part of its autonomous Xinjiang region.
    • After the 1962 war, it is administered by China. It is the second-largest Indo-China border area covering over 38000 sq. km. However, it is uninhabited land.
    • While India claims the entire Aksai Chin territory as well as the Shaksgam valley (Indian Territory gifted to China by Pakistan), China contests Indian control over Daulat Beg Oldi (a tehsil in Leh south of Aksai China-it is believed to host the world’s highest airstrip).

    2) Sikkim region

    • China has recognised India’s sovereignty over Sikkim and had initiated the trade at Nathu La pass.
    • However, this is the region where the Doklam standoff took place.

    3) Arunachal Pradesh Region

    • The Arunachal Pradesh border that China still claims to be its own territory is the largest disputed area, covering around 90000 sq. km.
    • It was formally called North-East Frontier Agency.
    • During the 1962 war, the People’s Liberation Army occupied it but they announced a unilateral ceasefire and withdrew respecting the international boundary (Mcmahon Line).
    • However, it has continued to assert its claim over the territory.

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  • GI(Geographical Indicator) Tags

    GI tag for Sohrai Khovar painting, Telia Rumal

    Prelims Only | Economics | Mains Paper 3: Intellectual Property Rights

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Telia Rumal, Sohrai Khovar painting

    Mains level: Not Much

    Jharkhand’s Sohrai Khovar painting and Telangana’s Telia Rumal were given the Geographical Indication (GI) tag by the Geographical Indications Registry.

    This year, many GI tags have been allocated. A few of them to count are- Kashmir saffron, Manipur black rice, Gorakhpur terracotta, Kovilpatti kadalai mittai etc.  Check here for more.

    Sohrai Khovar painting

    • The Sohrai Khovar painting is a traditional and ritualistic mural art being practised by local tribal women in the area of Hazaribagh district of Jharkhand.
    • The painting is primarily being practised only in the district of Hazaribagh. However, in recent years, for promotional purposes, it has been seen in other parts of Jharkhand.
    • It is prepared during local harvest and marriage seasons using local, naturally available soils of different colours in the area.
    • Traditionally painted on the walls of mud houses, they are now seen on other surfaces, too.
    • The style features a profusion of lines, dots, animal figures and plants, often representing religious iconography.
    • In recent years, the walls of important public places in Jharkhand, such as the Birsa Munda Airport in Ranchi, and the Hazaribagh and Tatanagar Railway Stations, among others, have been decorated with these paintings.

    Telia Rumal

    • Telia Rumal cloth involves intricate handmade work with cotton loom displaying a variety of designs and motifs in three particular colours — red, black and white.
    • The Rumal can only be created using the traditional handloom process and not by any other mechanical means as otherwise, the very quality of the Rumal would be lost.
    • During the Nizam’s dynasty, Puttapaka, a small, backward village of the Telangana region of Andhra Pradesh had about 20 families engaged in handloom weaving, who were patronized by rich families and the Nizam rulers.
    • The officers working in the court of the Nizam would wear the Chituki Telia Rumal as a symbolic representation of status.
    • Telia Rumals were worn as a veil by princesses at the erstwhile court of the Nizam of Hyderabad, and as a turban cloth by Arabs in the Middle East.

    Back2Basics: Geographical Indications in India

    • A Geographical Indication is used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
    • Such a name conveys an assurance of quality and distinctiveness which is essentially attributable to its origin in that defined geographical locality.
    • This tag is valid for a period of 10 years following which it can be renewed.
    • Recently the Union Minister of Commerce and Industry has launched the logo and tagline for the Geographical Indications (GI) of India.
    • The first product to get a GI tag in India was the Darjeeling tea in 2004.
    • The Geographical Indications of Goods (Registration and Protection) Act, 1999 (GI Act) is a sui generis Act for protection of GI in India.
    • India, as a member of the WTO enacted the Act to comply with the Agreement on Trade-Related Aspects of Intellectual Property Rights
    • Geographical Indications protection is granted through the TRIPS Agreement.

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  • Food Safety Standards – FSSAI, food fortification, etc.

    Spirulina Groundnut Chikki to boost immunity

    Prelims Only | Science Tech | Mains Paper 3: Achievements Of Indians In S&T

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Spirulina Groundnut Chikki

    Mains level: NA

    The Mysuru-based Central Food Technological Research Institute, CFTRI has developed Spirulina groundnut Chikki that can provide micro-nutrients and boost the immunity of people during this time of the pandemic.

    Beware, the Chikki so mentioned has no GI tag. What makes it significant is the Spirulina, a photosynthetic bacteria, which is suitable for human consumption.

    Spirulina Groundnut Chikki

    • It is a snack that provides good micro-nutrients.
    • It has used Spirulina as well as the tasty, nourishing groundnuts to prepare Chikki that is rich in micro-nutrients such as Vitamin A, Beta Carotene and easily digestible algal proteins.
    • Other nutritious snacks of CFTRI such as Nutri mango fruit bar and cardamom flavoured water is also part of the food items supplied to the migrant labourers.
    • The mango bar is rich with carbohydrates, carotene, Vitamin C and Zinc to improve the immunity.
    • Cardamom flavoured water with traditional herbs to have immune booster qualities.

    What is Spirulina?

    • Spirulina is an organism that grows in both fresh and saltwater.
    • It is a type of cyanobacteria, which is a family of single-celled microbes that are often referred to as blue-green algae.
    • It is used as a dietary supplement or whole food. It is also used as a feed supplement in the aquaculture, aquarium, and poultry industries.
    • Just like plants, cyanobacteria can produce energy from sunlight via a process called photosynthesis.

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  • Festivals, Dances, Theatre, Literature, Art in News

    Toda Embroidery of the Nilgiris

    Prelims Only | History | Mains Paper 1: Arts & Culture

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Toda embroidery

    Mains level: Not Much

    Many women and indigenous Toda artisans from the Nilgiris are producing thousands of stylish, embroidered masks for local residents, police, and sanitary workers.

    Recently, the Assamese Gamosa was in new. Now the Pukhoor Embroidery has made it into the list. Keep a note of all such handicrafts. We can expect a match the pair based prelim question.

    Toda Embroidery

    • The Toda Embroidery, also locally known as “pukhoor” is an artwork among the Toda pastoral people of Nilgiris, in Tamil Nadu, made exclusively by their women.
    • The embroidery, which has a fine finish, appears like a woven cloth but is made with the use of red and black threads with a white cotton cloth background.
    • Both sides of the embroidered fabric are usable and the Toda people are proud of this heritage.
    • This handicraft product is listed as a geographically tagged product and is protected under the Geographical Indications of Goods (Registration & Protection) Act (GI Act) 1999.

    Related facts

    • The local terms used to describe the embroidery work are ‘kuty’ or ‘awtty’ meaning “stitching” and ‘kutyvoy’ meaning the embroidered piece.
    • The materials used in this work are roughly woven white cloth, woollen black and red threads with use occasionally of blue threads and manufactured needles.
    • The designs developed relate to nature and the daily cycle of life.
    • The patterns used in Toda embroidery do not cover many floral motifs but generally cover celestial bodies (like Sun and Moon), reptiles, animals, and horns of buffaloes, made in crimson and black colours.
    • Rabbit ears are a constant depiction on the boundary of the embroidered cloth. Another common design in the form of black triangles in a box design is done in honour of their first priest.
    • Women who do embroidery consider their work as a “tribute to Nature”.
    • As a traditional garment, it is worn by both men and women at all ceremonial occasions and also at funerals. Elderly people of the community wear this cloth daily.

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  • Modern Indian History-Events and Personalities

    Person in news: Gopal Krishna Gokhale

    Prelims Only | | Mains Paper 1: Modern Indian History

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: GK Gokhale

    Mains level: Gokhale and his contribution in freedom struggle

    The Prime Minister has paid tributes to Gopal Krishna Gokhale on his birth anniversary.

    These days, personality-based prelims questions are quite prevalent.

    Q.) He wrote biographies of Mazzini, Garibaldi, Shivaji and Shri Krishna; stayed in America for some time; and was also elected to the Central Assembly. He was – (CSP 2018)

    a) Aurobindo Ghosh

    b) Bipin Chandra Pal

    c) Lala Lajpat Rai

    d) Motilal Nehru

    Gopal Krishna Gokhale (1866-1915)

    • Gokhale was a liberal political leader and a social reformer during the Freedom Movement.
    • Gokhale was a senior leader of the Indian National Congress (INC) and the founder of the Servants of India Society.
    • Through the Society as well as the Congress and other legislative bodies he served in, Gokhale campaigned for Indian self-rule and for social reforms.

    Gokhale and INC

    • Gokhale became a member of the INC in 1889, as a protégé of social reformer MG Ranade.
    • He was the leader of the moderate faction of the Congress party that advocated reforms by working with existing government institutions.

    Quest for political reforms

    • Gokhale’s mentor, justice M.G. Ranade started the Sarvajanik Sabha Journal.
    • Gokhale’s deposition before the Welby Commission on the financial condition of India won him accolades.
    • He played a leading role in bringing about Morley-Minto Reforms (1909), the beginning of constitutional reforms in India.

    Servants of India Society

    • In 1905, when Gokhale was elected president of the INC and was at the height of his political power, he founded the Servants of India Society.
    • It aimed to specifically further one of the causes dearests to his heart: the expansion of Indian education.
    • The Society took up the cause of promoting Indian education in earnest, and among its many projects organised mobile libraries, founded schools, and provided night classes for factory workers.

    Involvement in the government

    • In 1899, Gokhale was elected to the Bombay Legislative Council.
    • He was also elected to the Imperial Council of the Governor-General of India as a non-officiating member representing Bombay Province.

    Mentor to Gandhi

    • Gokhale was famously a mentor to Mahatma Gandhi in the latter’s formative years.
    • In 1912, Gokhale visited South Africa at Gandhi’s invitation.
    • As a young barrister, Gandhi returned from his struggles and received personal guidance from Gokhale, including a knowledge and understanding of India and the issues confronting common Indians.
    • By 1931, Gandhi emerged as the leader of the Indian Independence Movement. In his autobiography, Gandhi calls Gokhale his mentor and guide.

    His literary works

    • In 1908, Gokhale founded the Ranade Institute of Economics.
    • He started the English weekly newspaper, The Hitavad (The people’s paper).
    • He also published a daily newspaper titled Jnanaprakash, which allowed him to voice his reformist views on politics and society.

    With inputs from https://en.wikipedia.org/wiki/Gopal_Krishna_Gokhale

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