August 24th, 2021, CNA:- Download PDF Here
TABLE OF CONTENTS
A. GS 1 Related B. GS 2 Related C. GS 3 Related ECONOMY 1. FM unveils Rs. 6 lakh-cr. asset monetisation plan DEFENCE AND INTERNAL SECURITY 1. Russian stealth frigates to come in 2023 D. GS 4 Related E. Editorials DISASTER MANAGEMENT 1. Tauktae, Yaas and planning for the next ECONOMY 1. The Indian economy is struggling to recover GOVERNANCE 1. Finding a healthy way to cook F. Prelims Facts 1. Plan to deport 60,000 Chakmas from Arunachal slammed 2. Vedanta makes gas discovery in Gujarat G. Tidbits 1. Goyal hints at tit-for-tat trade restrictions 2. Implementation of NEP by Karnataka H. UPSC Prelims Practice Questions I. UPSC Mains Practice Questions
A. GS 1 Related
Nothing here for today!!!
B. GS 2 Related
Nothing here for today!!!
C. GS 3 Related
1. FM unveils Rs. 6 lakh-cr. asset monetisation plan
Context:
- Launch of the National Monetisation Pipeline (NMP) for Central ministries and public sector entities by the Union Minister for Finance and Corporate Affairs.
Details:
- The pipeline has been developed by NITI Aayog, in consultation with infrastructure line ministries, based on the mandate for ‘Asset Monetisation’ under Union Budget 2021-22.
- Union Budget 2021-22 had identified monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing.
- The NMP is in line with the government’s strategic divestment policy, under which the state will retain presence in only a few identified sectors with the rest privatized.
- NMP is envisaged to serve as a medium-term roadmap for identifying potential monetisation-ready projects, across various infrastructure sectors including roads, ports, airports, railways, warehousing, gas & product pipeline, power generation and transmission, mining, telecom, stadium, hospitality and housing.
- Under the plan, private firms can invest in projects for a fixed return using the InvIT route as well as operate and develop the assets for a certain period. Some assets such as warehouses and stadiums can also be given on a long-term lease for operations. Thus it will involve the participation of the private firms in the infrastructure sector.
- The objective of this initiative is to enable ‘Infrastructure Creation through Monetisation’.
- The programme will include only brownfield assets that are either languishing or have not been fully monetised. There would be no transfer of ownership of assets or land. The primary ownership of the assets will continue to be with the Government with the framework envisaging hand back of assets to the public authority at the end of transaction life.
- NMP estimates aggregate monetisation potential of Rs 6.0 lakh crores through core assets of the Central Government, over a four-year period, between 2021-22 and 2024-25.
- The top 5 sectors include roads, railways, power, oil & gas pipelines and telecom.
- The central government has set a goal of Rs 88,000 crores to be monetised in 2021-22, adding that each ministry has been given an annual target.
- As part of a multi-layer institutional mechanism for overall implementation and monitoring of the Asset Monetization programme, an empowered Core Group of Secretaries on Asset Monetization (CGAM) under the chairmanship of Cabinet Secretary has been constituted.
- Additionally, the Finance Minister has stated that the Centre will incentivise states to undertake disinvestment of PSUs and asset monetisation and outlined a plan.
The central government has set aside Rs 5,000 crore to incentive state governments to monetise their assets.
Significance:
Streamline monetization:
- The NMP will help provide a roadmap of the programme for public asset owners; along with visibility on potential assets to the private sector. It will help boost investors’ confidence by providing sufficient clarity on the number, size and type of assets that would be made available in the market.
- Thus the NMP will help streamline the monetization plans of the government.
Unlock value in idle or under-performing public assets:
- The programme will help unlock the value of government investment and public money in infrastructure by tapping institutional and long-term patient capital.
- The programme will help generate greater value for the existing assets and unlock resources for the economy.
Alternate funding mechanism:
- Asset monetisation will help tap private sector investment for new infrastructure creation.
- The estimated value envisaged under NMP corresponds to about 5.4 per cent of the total infrastructure investment envisaged under the NIP which is Rs 111 lakh crore and 14 per cent of the proposed outlay for the Centre (Rs 43 lakh crore).
- NMP will help improve liquidity to increase expenditure in infrastructure by the government.
- The success of the plan could also enable the recycling of funds which will be critical for the revival of infrastructure investment in India.
- Along with the privatisation of state-run companies, the monetization route will allow the government to raise resources even without losing ownership of the assets.
Accelerate infrastructure development:
- The money raised through monetization can be leveraged for further public investments in the infrastructure sector and it will thus accelerate infrastructure development in India.
- The asset monetisation pipeline takes the National Infrastructure Pipeline to the next phase by pitching for higher public-private partnership.
For information on the National Infrastructure Pipeline, refer to the following article:
UPSC PIB Summary of 29th Apr 2020
Benefits of involving the private sector:
- The programme, apart from being a viable funding mechanism, will also bring in a paradigm shift in infrastructure operations, augmentation and maintenance considering the private sector’s resource efficiencies and its ability to dynamically adapt to the evolving global and economic reality.
- Thus the Asset Monetisation programme can lead to improved infrastructure quality and operations and maintenance.
Spill-over effects of increased public expenditure in infrastructure:
- The increased infrastructure investment, apart from ensuring access to high-quality and affordable infrastructure to the common citizen of India, will also create employment opportunities and enable high economic growth. This becomes all the more significant in the backdrop of the pandemic.
- Thus the NMP if implemented well could provide a much needed positive trigger for the economic revival.
Conclusion:
- Though the NMP is a step in the right direction, meticulous planning, project packaging, and coordination will be needed to address the underlying structural and legacy issues to help realize the potential benefits of NMP.
Category: DEFENCE AND INTERNAL SECURITY
1. Russian stealth frigates to come in 2023
Context:
- The Chief executive officer of United Shipbuilding Corporation has stated that the first of two additional Krivak class stealth frigates being built by Russia is expected to be delivered to India in the middle of 2023.
Background:
- In October 2016, India and Russia signed an Inter-Governmental Agreement (IGA) for four Krivak or Talwar class stealth frigates — two to be procured directly from Russia and two to be built by Goa Shipyard Ltd. (GSL) via technology transfer.
- The Navy currently operates six Krivak class frigates.
Frigates:
- A frigate is a type of warship.
- The warships are classified differently based on tonnage, weapons, mission definition and capabilities.
- Frigates are naval vessels intermediate between corvettes and destroyers.
- Destroyers are much smaller than battleships but larger than frigates. A Destroyer is heavier, carries more firepower, and is slightly faster than a Frigate.
- A corvette is a very small class of combat ship. Frigates are larger than corvettes and have a fair mix of offensive and defence capabilities.
- Frigates are also used for patrol missions and to escort larger ships. Frigates are possibly the smallest “blue water” ocean-spanning warship.
- As of February 2017, 14 guided-missile frigates from four different classes – Shivalik, Talwar, Brahmaputra, and Godavari – are operated by the Indian Navy.
Details:
- The Krivak class of frigates are capable of 30 knots speed and have a displacement of about 4,000 tonnes.
- Brahmos supersonic cruise missile is part of its arsenal.
- Due to the use of stealth technologies and a special hull design, the ships have reduced radar cross section as well as electromagnetic, acoustic and infrared signatures.
D. GS 4 Related
Nothing here for today!!!
E. Editorials
1. Tauktae, Yaas and planning for the next
Background:
- Severe cyclones, Tauktae and Yaas made landfalls on India’s western coast, Gujarat, and the eastern coast, Odisha, in the month of May 2021, respectively.
- Apart from the loss of lives and the displacement of millions, these cyclones caused massive damage to infrastructure, the agricultural sector, and houses. As per the Government of India estimates, the economic losses stood at Rs. 320 billion (U.S.$ 4.3 billion).
For related information, refer to the following articles:
UPSC Comprehensive News Analysis of 16th May 2021
UPSC Comprehensive News Analysis of 23rd May 2021
Cyclones in India:
- According to the India Meteorological Department (IMD) 2013 data, the coastal states of India account for 7% of the global tropical cyclones.
- The eastern coast has experienced more cyclones as compared to the western coast. The state of Odisha has experienced the most number of cyclones.
- Every year, India experiences an average of around five to six tropical cyclones that are formed in the Bay of Bengal and the Arabian Sea with at least two of these developing into severe cyclonic storms.
- The North Indian Ocean cyclone season occurs between April and November, with peaks in late April to May and October to November.
- Among the natural disasters, cyclones constituted the second most frequent phenomena that occurred in 15% of India’s total natural disasters over 1999-2020.
Vulnerability of India to cyclones:
Position of India:
- Given India’s location in the North Indian Ocean and it being surrounded by the Indian Ocean on two sides, India continues to remain vulnerable to tropical cyclones both on the east and the west coasts.
- The absence of a large landmass between the Pacific and the Bay allows cyclonic winds to easily move into the Bay of Bengal. Hence low-pressure systems originating from the Pacific Ocean also travel towards the Indian coastline.
Long coastline:
- The Indian coastline is around 7,500 km and it includes 96 coastal districts.
- Of India’s 7500 km coastline, almost 5700 km are highly vulnerable to the impacts of tropical cyclones and related hydro-meteorological hazards and consequently to recurrent loss of life and properties.
Dense population density:
- Around 262 million people live in the 96 coastal districts of India.
- The World Bank and the United Nations (2010) estimate that around 200 million city residents would be exposed to storms and earthquakes by 2050 in India.
Impact of climate change:
- Tropical cyclones will grow stronger and wetter due to global warming.
- The increasing sea surface temperatures in the northern Indian Ocean and the changing geo-climatic conditions in India have led to a rise in the frequency and intensity of cyclones in the coastal States.
For more related information, refer to the following article:
UPSC Comprehensive News Analysis of 19th May 2021
Concerns:
Fatalities:
- Cyclones have been the third most lethal disaster in India after earthquakes (42%) and floods (33%).
- There has been an appreciable fall in the number of fatalities due to cyclones over the years mainly due to improved early warning systems, cyclone forecasting, and better disaster management activities such as timely evacuation, rehabilitation and relief distributions.
Economic impact:
- Despite the appreciable fall in the number of fatalities due to cyclones over the years, the administration has not been able to minimise economic losses from cyclones.
- Cyclones have been the second most expensive disaster in terms of the costs incurred in damage in India, accounting for 29% of the total disaster-related damages after floods (62%).
- The absence of long-term mitigation measures has resulted in cyclones inflicting substantial damage to public and private properties.
- Cyclones have also led to an increase in the fiscal burden of governments through increased spending to implement effective cyclone preparation measures.
Recommendations:
Holistic disaster management:
- There should be equal emphasis on all aspects of disaster management.
- Disaster warning systems in the coastal districts should be improved and disaster preparedness measures should be revamped in line with the needs.
- Construction of evacuation shelters in cyclone-prone districts should be taken up in a mission mode in the vulnerable areas and regions.
- Regular meetings for disaster preparedness needs to be conducted to review the capability and lacunae.
- Specialized disaster action forces need to be raised.
- Necessary steps need to be taken to ensure financial protection against calamities through insurance for property and assets.
Adopting of natural solutions:
- Measures should be taken to widen the cover under shelterbelt plantations and help regenerate mangroves in coastal regions to lessen the impact of cyclones.
Long term mitigation measures:
- With a rise in the frequency of cyclones, India needs to look at long-term mitigation measures. A critical long-term mitigation intervention would be to focus on the building of cost-effective cyclone-resilient infrastructure such as storm surge-resilient embankments, canals and improving river connectivity to prevent waterlogging in low-lying areas.
- The administration should prioritize installing disaster-resilient power infrastructure in the coastal districts, providing concrete houses to poor and vulnerable households.
Additional information:
- According to the Global Climate Risk Index report 2021, India ranks as the seventh worst-hit country globally in 2019 due to the frequent occurrence of extreme weather-related events.
- The Asian Development Bank’s report in 2014 estimated that India would suffer a loss of around 1.8% of GDP annually by 2050 from climate-related events.
1. The Indian economy is struggling to recover
Background:
- The International Monetary Fund (IMF)’s latest update of the World Economic Outlook report, though projected a global economic expansion of around 6%, had warned of a widening variance in the global recovery process in the aftermath of the pandemic.
- While the forecast for advanced economies has been revised upwards, prospects for emerging and developing economies, particularly those in Asia are projected to experience slower recoveries.
- The primary reason for this divergence seems to be the difference in vaccine access and the pace of vaccination coverage and the ability of the countries to provide for additional fiscal support.
- There has been a huge difference in the pace of vaccine roll-out between the advanced and the emerging and low-income countries. According to the IMF estimates, overall, over 40% of the population in advanced economies have been fully vaccinated as compared with just 11% in emerging market economies.
- The advanced economies have been able to use their vastly superior fiscal situation to implement significantly bigger stimulus packages. This has helped prop up consumer demand and hence support domestic industry and growth.
For detailed information on this topic, refer to the following article:
UPSC Comprehensive News Analysis of 29th July 2021
Concerns for India:
Economic contraction:
- The Indian economy has exhibited one of the poorest performances among the emerging market economies.
- After the first COVID-19 wave, the Indian economy contracted by over 7% during 2020-21.
Slow recovery:
- The economic recovery has been slow in India and this is partly attributable to the second wave of the pandemic.
- The recovery process has been also skewed and India has been experiencing what is commonly referred to as a K-shaped economic recovery process. This does not augur well for the long term sustainable economic growth prospects of India.
For more information on this topic, refer to the following article:
UPSC Comprehensive News Analysis of 30th July 2021
Inflation:
- Retail inflation had crossed 6% and continues to remain high leading to price pressures on the economic recovery process. It has also raised fears of stagflation in the Indian economy.
- The high inflation will only further exacerbate the difficulties being faced by the poor.
Limited resources with government for public expenditure:
- Given the slowdown in revenue inflow to the government, the government too had cut back public spending.
- The large role that public expenditure plays in India’s economy does not augur well for the growth prospects of the Indian economy.
Limited fiscal stimulus in India:
- Unlike other economies, India’s actual fiscal stimulus has been very limited as compared to its GDP. Also, most of the measures are in the form of easy credit facilities to affected sectors of the economy. It does not adequately address the depressed consumer demand in the economy, which is so very important for an economic recovery.
Depressed consumer demand:
- Consumer spending has also been extremely sluggish and shows no signs of picking up. This has dampened business confidence and the entrepreneurs are wary of making new investments.
Uncertainty regarding the pandemic:
- The predictions of the onset of a third wave of COVID-19, new mutant variants and the reports of breakthrough infections even in fully vaccinated individuals have added to the uncertainty surrounding the pandemic.
Poor rate of vaccination in India:
- There has been a very poor spread of vaccination in the country. It is unlikely that the Central government will be able to achieve its target of vaccinating all adults by the end of the year.
Conclusion:
- Based on the above-discussed aspects it looks most likely that the Indian economic recovery will only take more time to fructify.
1. Finding a healthy way to cook
Context:
- Recently, the Prime Minister introduced Ujjwala 2.0 under which one crore additional Pradhan Mantri Ujjwala Yojana (PMYU) connections are to be provided to low-income families who could not be covered under the earlier phase of PMUY.
Background:
Pradhan Mantri Ujjwala Yojana (PMYU):
- The Indian government introduced the Pradhan Mantri Ujjwala Yojana (PMYU) in 2016.
- Under this scheme, 5 Cr LPG connections were to be provided to Below Poverty Line families with a support of Rs.1600 per connection.
- Access to this clean energy was expected to alleviate the public health burden posed by household air pollution on women. Also, the scheme would improve women’s access to education, leisure, and the labour market, and also improve the environment and climate.
- The use of firewood or dung cakes for cooking was associated with the following concerns.
- The collection of firewood or making dung cakes involved a lot of time and effort. This limited the women’s avenue for participation in other economic activities.
- The use of firewood and dung cakes leads to indoor pollution and affects health.
- The use of firewood has an adverse impact on the environment as well in the form of deforestation and the release of GHGs.
- The use of firewood or dung cakes for cooking was associated with the following concerns.
For more related information on this topic, refer to the following article:
Pradhan Mantri Ujjwala Yojana (PMUY)
- NITI Aayog has laid out a road map for universal access to LPG by 2025.
Concerns with the implementation of PMUY:
Low usage:
- Evaluation studies have pointed out the fact that many LPG connection holders are still using other fuels like firewood and dung cakes. Firewood or cow dung continues to be the main cooking fuel for most such people, as these sources of fuel are free of cost and easily available.
- Official data show that 48% of rural households used LPG (2018) but only partially.
Possible factors:
- Expensive refills.
- The low value attached to the opportunity cost of women’s labour.
- The other problems in accessing LPG are administrative and include the distance to LPG distribution centres and long waiting time.
Recommendations:
- As questions arise over the Ujjwala scheme’s success, it would be prudent to introduce alternative clean, easily accessible and affordable sources of energy.
- Alternatives like solar energy and solar cookers, smokeless chulhas, biogas plants and electric cookers need to be also promoted. Research and development efforts need to be made in the public and private sectors to explore these alternatives.
- Women in India can achieve energy security for cooking only through cheaper and efficient alternatives.
F. Prelims Facts
1. Plan to deport 60,000 Chakmas from Arunachal slammed
Chakma and Hajong:
- The Chakmas and Hajongs, originally residents of the Chittagong Hill Tracts of former East Pakistan, had to flee when their land was submerged by the Kaptai dam project on the Karnaphuli River in the 1960s. Buddhists by faith, the Chakmas faced religious persecution in East Pakistan along with the Hajongs, who are Hindus.
- They fled erstwhile East Pakistan (now Bangladesh) in 1964-65 and came to India. The groups entered India through what was then the Lushai Hills district of Assam (today’s Mizoram). While some stayed back with Chakmas already living in the Lushai Hills, the Indian government moved a majority of the refugees to North-East Frontier Agency (now Arunachal Pradesh).
Context:
- Chakma organisations have slammed the proposed deportation of 60,000 people belonging to the Chakma and Hajong communities from Arunachal Pradesh.
2. Vedanta makes gas discovery in Gujarat
- Vedanta has claimed the discovery of a natural gas block in Gujarat. The company has discovered a gas and condensate deposition [named ‘Jaya’] in its exploratory well Jaya1, in Bharuch District of Gujarat.
- Vedanta had own won a licence for prospecting under the open acreage licensing policy (OALP).
- The Open Acreage Licensing Policy (OALP) launched under the new Hydrocarbon Exploration and Licensing Policy (HELP), allows companies to carve out areas they want to explore oil and gas in. Companies can put in an expression of interest for any area throughout the year but such interests are accumulated thrice in a year. The areas sought are then put on auction.
- OALP will help increase exploration acreages in India and accelerate the Exploration and Production (E&P) activities in India.
G. Tidbits
1. Goyal hints at tit-for-tat trade restrictions
- Buoyed by record merchandise exports in the first quarter of the current fiscal year, the government has set a target of $400 billion merchandise exports in FY22, with specific targets set for sectors and countries.
- Notably, however, India was a net importer in June 2021 with a trade deficit of $9.4 billion.
- Subsequently, the government also aims to reach a merchandise exports target of $500 billion for FY23 and $1 trillion in 2027-28.
- The government is aiming to target $2 trillion exports by 2030, with $1 from trillion merchandise exports and $1 trillion from services exports.
2. Implementation of NEP by Karnataka
- Karnataka has become the first state to start the implementation of the National Education Policy (NEP) 2020.
- Some of the major aspects of the NEP, 2020 involve the following:
- Holistic multidisciplinary education
- Industry-relevant curriculum and skill-building
- Flexibility in choice of subjects
- Continuous, comprehensive and realistic assessment
H. UPSC Prelims Practice Questions
Q1. Which of the given statements best describes the recently launched “Yuktdhara” portal?
- A portal launched for planning, coordination, execution and monitoring of Skill Development Initiatives.
- An online repository of assets created under various national rural development programmes such as MGNREGA, Integrated Watershed Management Programme etc.
- A platform for effective enforcement of the no child labour policy.
- A data repository for all the meteorological missions of ISRO and deals with weather-related information, oceanography, and tropical water cycles.
CHECK ANSWERS:-
Answer: b
Explanation:
The Yuktdhara portal is an online repository of assets created under various national rural development programmes such as MGNREGA, Integrated Watershed Management Programme, etc.
Read more at PIB Summary & Analysis for 23rd August 2021.
Q2. Consider the following statements with respect to Chakmas and Hajongs:
- They came to India from Bhutan after being displaced due to the submergence of their land due to the construction of the Kaptai dam.
- Chakmas are predominantly Buddhists and Hajongs are Hindus.
- They are both identified as Particularly Vulnerable Tribal Groups (PVTGs).
Which of the given statements is/are correct?
- 1 only
- 2 and 3 only
- 2 only
- 1, 2 and 3
CHECK ANSWERS:-
Answer: c
Explanation:
- Chakmas and Hajongs came to India in the 1960s from Bangladesh (East Pakistan) after being displaced due to the submergence of their land due to the construction of the Kaptai dam.
- Chakmas are predominantly Buddhists and Hajongs are Hindus.
- They are both not identified as Particularly Vulnerable Tribal Groups (PVTGs).
Q3. “SARTHAQ” often in news is:
- An initiative launched to improve the proficiency in reading and numeracy among children in the age group of 3 to 9 years.
- An implementation plan for school education launched in pursuance of the goals of National Education Policy 2020.
- National teachers’ platform built to host Open Educational Resources (OER) and tools for teachers in schools, teacher educators in Teacher Education Institutes (TEIs) and student teachers.
- An initiative to provide skills and right competencies to women so that they can take up gainful employment.
CHECK ANSWERS:-
Answer: b
Explanation:
SARTHAQ, developed by the Department of School Education and Literacy, is an indicative and suggestive implementation plan for school education. It will help in the implementation of the National Education Policy in the country.
Q4. Which of the given statements is/are correct?
- India has signed an Inter-Governmental Agreement with Russia for the supply of Krivak stealth frigates.
- Two Krivak class stealth ships are being built with technology transfer from Russia by Goa Shipyard Ltd. (GSL) under ‘Make in India’.
- Krivak class frigates have been inducted into the Indian Navy under the Talwar class and the Teg class.
Options:
- 1 only
- 1 and 3 only
- 2 only
- 1, 2 and 3
CHECK ANSWERS:-
Answer: d
Explanation:
- India signed an Inter-Governmental Agreement with Russia for the supply of Krivak stealth frigates in 2016.
- Two Krivak class stealth ships are being built with technology transfer from Russia by Goa Shipyard Ltd. (GSL) under ‘Make in India’.
- 6 Krivak class frigates have been inducted into the Indian Navy under the Talwar class and the Teg class.
Q5. With reference to ‘Financial Stability and Development Council’, consider the following statements:
- It is an organ of NITI Aayog.
- It is headed by the Union Finance Minister.
- It monitors macroprudential supervision of the economy.
Which of the statements given above is/are correct?
- 1 and 2 only
- 3 only
- 2 and 3 only
- 1, 2 and 3
CHECK ANSWERS:-
Answer: c
Explanation:
- Financial Stability and Development Council was set up in 2010.
- It is headed by the Union Finance Minister.
- It falls under the Department of Economic Affairs.
- It monitors macroprudential supervision of the economy.
I. UPSC Mains Practice Questions
- With a rise in the frequency of devastating cyclones, India needs to look at long-term mitigation measures. Discuss. (150 words, 10 marks) [GS-3, Disaster Management]
- Explain why the usage of LPG cylinders remains low despite many flagship schemes and programmes. (150 words, 10 marks) [GS-3, Economy]
Read the previous CNA here.
August 24th, 2021, CNA:- Download PDF Here
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