24 Apr 2024: UPSC Exam Comprehensive News Analysis

A. GS 1 Related
B. GS 2 Related
C. GS 3 Related
D. GS 4 Related
E. Editorials
HEALTH
1. Toss out the junk food, bring back the healthy food plate
GOVERNANCE
1. An overview of the PMAY-U scheme
SCIENCE
1. How is India planning to boost EV production?
F. Prelims Facts
1. ‘Inflation vulnerable to rising heat’
2. NABARD unveils strategy to mobilise green financing
G. Tidbits
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions

Category: GOVERNANCE

1. An overview of the PMAY-U scheme

Syllabus: GS-2, Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation

Mains: Issues faced by PMAY-U

PMAY Scheme:

• The Pradhan Mantri Awas Yojana (PMAY) aimed to achieve Housing for All (HfA) by 2022, addressing both rural and urban housing needs.
• Objectives included slum rehabilitation with private sector involvement, promotion of affordable housing for weaker sections, partnerships with public and private sectors, and subsidies for beneficiary-led construction.

Performance of In-Situ Slum Redevelopment:

• The in-situ slum redevelopment (ISSR) component has not met expectations. Only 2,10,552 houses have been sanctioned, far below the actual need.
• Despite a budgetary infusion of over $29 billion, PMAY-U has only addressed 25.15% of the urban housing shortage, with around 40 lakh houses still lacking.

Challenges and Failures:

• Private sector participation, aimed at bridging the gap in social housing, faced challenges. Vertical growth in slum redevelopment often led to impractical living conditions due to recurring utility costs and squeezed spaces.
• Land ownership issues, reliance on consultants for project planning without community involvement, and discrepancies between city master plans and PMAY-U objectives hindered progress.

Investment Expenditure and Government Contribution:

• The Centre’s contribution to the PMAY-U scheme amounts to 25% of the investment expenditure, approximately ₹2.03 lakh crore.
• Beneficiary households contribute 60% of the investment, while state governments and urban local bodies collectively contribute ₹1.33 lakh crore.
• Limited government involvement is noted in the scheme, especially in the Beneficiary-led Construction (BLC) and Credit Linked Subsidy Schemes (CLSS) verticals, where land ownership remains with beneficiaries.

Nut Graf: The Pradhan Mantri Awas Yojana (PMAY) aimed to provide Housing for All by 2022, focusing on slum redevelopment and affordable housing. However, the scheme has faced challenges, including inadequate performance in in-situ slum redevelopment and limited government contribution.

Category: SCIENCE

1. How is India planning to boost EV production?

Syllabus: GS-3, Science and Technology – Developments and their Applications and Effects in Everyday Life

Mains: EV production in India

Introduction:

• On March 15, the Union government approved a policy to boost Electric Vehicle (EV) production in India.
• The policy aims to position India as an EV manufacturing hub with a minimum investment cap of ₹4,150 crore.
• It incentivizes global EV makers like Tesla and BYD to enter the Indian market and encourages local production to align with market demand.

Key Policy Provisions:

• Import duty on EVs imported as Completely Built Units (CBU) with a CIF (cost, insurance and freight) value of $35,000 is reduced to 15% for five years, provided a manufacturing unit is set up within three years.
• Duty waiver of ₹6,484 crore or proportional to investment, whichever is lower, on imported EVs, with a maximum cap of 40,000 units.
• Localisation targets are set for manufacturers, with a requirement to achieve 25% localisation by the third year and 50% by the fifth year.
• Bank guarantees of manufacturers to be revoked if localisation targets and investment criteria are not met.

Domestic Players’ Response:

• Tata Motors opposed the policy, fearing negative impacts on the domestic industry.
• Rajat Mahajan from Deloitte India noted that the policy favours OEMs (Original Equipment Manufacturers) catering to the higher end of the market.
• Indian players in segments below ₹29 lakh are less likely to benefit from the import duty reduction.

Market Considerations and Challenges:

• Global EV players must consider local conditions such as infrastructure and usage patterns.
• Penetration in the two and three-wheeler segment has been significant, but passenger vehicles lag due to infrastructure limitations and range anxiety.
• India needs an estimated 13 lakh charging stations by 2030 to support widespread EV adoption, as per the Confederation of Indian Industry (CII).
• The EV ecosystem needs to address reliability, durability, and service support to ensure sustainable growth.

Conclusion:

• It has been emphasized the importance of aligning product designs with domestic demand and focusing on sustainability to drive EV adoption effectively.
• Experts have suggested that Indian manufacturers should be directed towards creating suitable product designs and systems to meet domestic needs, with exports following as a result.

Nut Graf: India’s new EV policy aims to boost production by incentivizing global players and local manufacturing. However, domestic concerns persist, with challenges including infrastructure gaps and the need for sustainable ecosystem development.

2. NABARD unveils strategy to mobilise green financing

Context:

• NABARD reveals its ‘Climate Strategy 2030’ document on Earth Day.
• Its aim is to address India’s need for green financing, highlighting the shortfall in current green finance inflows.

About:

• NABARD states India requires about $170 billion annually to reach over $2.5 trillion by 2030.
• Current green financing stands at $49 billion as of 2019-20, significantly below the required amount.
• The majority of funds were allocated for mitigation, with only $5 billion for adaptation and resilience due to challenges in bankability and commercial viability.

Significance:

• NABARD’s Climate Strategy 2030 focuses on four key pillars: accelerating green lending across sectors, broader market-making role, internal green transformation, and strategic resource mobilization.
• Leading real estate developers like DLF pledge for sustainable development.
• DLF implements practices such as zero-discharge water systems and sewage treatment plants, recycling millions of litres of water daily and reducing strain on local water sources.
• DLF’s inclusion in the Dow Jones Sustainability Index for three consecutive years showcases its commitment to environmental, social, and governance excellence.
• Aakash Ohri, Joint MD of DLF, emphasizes the company’s efforts in water recycling, supporting horticulture, secondary water usage, and lake replenishment, thereby reducing groundwater reliance and prioritizing greenery preservation.

Q1. How many among the following is/are the schemes under the Ministry of Women 
and Child Development?

Q2. Consider the following statements concerning Pradhan Mantri Awas 
Yojana - Urban (PMAY-U):

Q3. Consider the following statements:

Q4. Consider the following statements:

Q5. Consider the following statements regarding the Purchasing Manager's 
Index (PMI):