13-July-2024-Daily-Current-Affairs

DEREGULATING NON-SUBSIDISED FERTILISERS 

TOPIC: (GS2) POLITY AND GOVERNANCE – SOURCE: INDIAN EXPRESS 

The Indian fertiliser industry is advocating for the deregulation of non-subsidised fertilisers as an initial step towards the deregulation of politically sensitive urea and nutrient-based subsidy (NBS) schemes. This move is supported by the successful model of water-soluble fertilisers. 

Current Scenario 

• Price Control: No significant price increase in maximum retail price (MRP) for urea and phosphatic & potassic (P&K) fertilisers is expected. 

• Urea: MRP fixed at ₹5,360 per tonne since November 2012. 

• Neem-coated Urea: ₹5,628 per tonne since January 2015. 

Deregulation Efforts 

• NBS Fertilisers: The Centre is unlikely to deregulate MRPs of ammonium phosphate (DAP), muriate of potash (MOP), and other non-urea fertilisers under NBS. 

• Includes complex fertilisers containing nitrogen (N), phosphorus (P), potassium (K), and sulphur (S). 

• Import Control: NBS fertilisers have been under price control since April 2010 with varying import dependency. 

• DAP: 50-55% 

• MOP: 100% 

• Complexes: 25-30% 

Over 100 WSF products available. 

• Global Comparison: India’s fertiliser subsidy (₹2.5 lakh crore) is among the highest, as noted in the World Bank’s ‘Enabling the Business of Agriculture 2019’ report. 

High-Value Nutrients 

• Specialised Nutrients: Demand for WSFs, which supply nutrients like zinc, calcium, and magnesium, is rising. 

• Suitable for high-value crops: grapes, pomegranate, papaya, etc. 

• Can be applied via drip irrigation, enhancing nutrient efficiency and reducing contaminants. 

SUBSIDIES ON FERTILIZERS 

The Indian government provides subsidies on fertilizers to make them affordable for farmers. This is done through a scheme called the Direct Benefit Transfer (DBT) scheme. 

HOW IT WORKS: 

• Subsidy Rates: The government fixes nutrient-based subsidy rates for different fertilizers like urea, DAP (diammonium phosphate), etc. These rates determine how much the government will pay per kilogram of nutrients (nitrogen, phosphorus, potassium) in the fertilizer. 

• Fertilizer Companies: The government reimburses fertilizer companies for the difference between the production cost and the subsidized selling price to farmers. 

• Farmer Purchase: Farmers buy fertilizers from authorized retailers using Aadhaar cards or Kisan Credit Cards (KCC). Point-of-Sale (PoS) devices are used to record these sales. 

• Subsidy Payment: Based on the sales data captured through PoS devices, the government releases the subsidy amount to the fertilizer companies. 

• Cabinet Approves ₹24,420 Crore Fertilizer Subsidy for 2024 Kharif Season  

Conclusion 

Deregulation of non-subsidised fertilisers is a significant step towards a more flexible and efficient fertiliser industry in India. By following the successful model of WSFs, the industry can achieve greater efficiency and meet the specific needs of diverse crops. This move will potentially reduce the heavy financial burden of subsidies while ensuring the availability of high-quality fertilisers for farmers. 

Multiple Choice Question: 

1. Consider the following statements regarding fertilizer subsidies in India:

1. The government directly subsidizes farmers for the purchase of fertilizers. 

1. The subsidy is provided on a per-tonne basis for different types of fertilizers. 

1. The subsidy amount is determined by the landed cost of fertilizers in each state. 

1. Nutrient Based Subsidy (NBS) scheme is a recent initiative to promote balanced use of fertilizers. 

Which of the statements given above are correct? 

1. 1 and 2 only 

1. 2 and 3 only 

1. 3 only 

1. 4 only 

ANSWER: D 

EXPLANATION: 

The government provides subsidies to fertilizer companies, not directly to farmers. 

The subsidy is based on the nutrient content (nitrogen, phosphorus, potassium) of the fertilizer, not the weight. (This is addressed by NBS). 

The subsidy is uniform across the country, not based on landed cost. 

The NBS scheme provides subsidies based on the nutrient content, encouraging balanced use of fertilizers and reducing overdependence on urea. 

JUST A BARGAINING CHIP: SPECIAL CATEGORY STATUS 

TOPIC: (GS2) POLITY AND GOVERNANCE – SOURCE: INDIAN EXPRESS 

Special Category Status (SCS) was introduced by the Planning Commission in 1969 as a tool to address regional imbalances by providing additional financial assistance to disadvantaged states. However, demands for this status have increasingly become a political bargaining tool. 

Origin and Purpose 

• Introduction in 1969: Initiated by the Planning Commission in the Fourth Five-Year Plan. 

• Initial Beneficiaries: Jammu and Kashmir, Assam, and Nagaland. 

• Expansion: Later included all northeastern states, Uttarakhand, and Himachal Pradesh. 

Assistance Mechanism 

• Gadgil Formula: Based on higher weightage to population and economic deprivation. 

• Financial Commission Role: FC aids in addressing budget deficits and setting criteria for fund allocation. 

• Per Capita Grants: Special assistance grants and loans at concessional rates. 

• Resource Transfers: Ensures 30% of plan assistance goes to SCS states. 

Changing Dynamics 

• Increasing Regional Parities: Rising demands for SCS status from various states. 

• Political Tool: Used for central-state negotiations and political gains. 

• 14th Finance Commission: Recommendations do not recognize SCS, but suggest increased devolution to all states. 

Contemporary Issues 

• Economic Parameters: Disparities in economic development continue to drive demands. 

• Governance and Autonomy: Concerns about autonomy and financial independence of states. 

• Central Assistance: Questions on the efficacy and fairness of continued special assistance. 

Conclusion 

Special Category Status, initially aimed at addressing regional disparities, has evolved into a contentious political issue. While it provides significant financial benefits, the challenge lies in balancing regional development with equitable resource distribution. The future of SCS remains uncertain, with ongoing debates about its relevance and implementation in contemporary India. 

Multiple Choice Question: 

1. Consider the following statements regarding India’s fiscal deficit:

1. It is the difference between the government’s total revenue and its total expenditure. 

1. A high fiscal deficit is always a sign of a weak economy. 

1. The government can finance the fiscal deficit by borrowing money from the public. 

1. Lowering the fiscal deficit is a primary objective of the Fiscal Responsibility and Budget Management (FRBM) Act. 

Which of the statements given above are correct? 

1. 1, 2 and 3 only 

1. 1, 3 and 4 only 

1. 2, 3 and 4 only 

1. 1, 2, 3 and 4 

ANSWER: B 

EXPLANATION: 

Fiscal deficit is the gap between government’s income (revenue) and spending (expenditure). 

A high fiscal deficit can be a concern, but it needs to be considered in context of economic growth and future investments. Sometimes, temporary high deficits are used for infrastructure spending to boost long-term growth. 

Borrowing from the public through instruments like government bonds is a way to finance the fiscal deficit. 

The FRBM Act aims to bring down the fiscal deficit to a sustainable level to ensure long-term financial stability. 

THE PDS IMPACT ON HOUSEHOLD EXPENDITURE 

TOPIC: (GS2) POLITY AND GOVERNANCE – SOURCE: THE HINDU 

The Public Distribution System (PDS) is a crucial social security program in India, designed to ensure food security. Covering up to 75% of the rural and 50% of the urban population under the National Food Security Act (NFSA), 2013, it subsidizes the cost of foodgrains, freeing up resources for households to spend on other essential items. 

Objectives and Coverage 

Purpose: Ensure food security by subsidizing foodgrains. 

Coverage: 

• 75% of the rural population. 

• 50% of the urban population. 

• NFSA, 2013: Legal framework for PDS. 

Expenditure Diversification 

• Empirical Inquiry: Whether subsidized foodgrains enable households to diversify their expenditure towards other nutrients and protein-rich food. 

Household Consumption Expenditure Survey (HCES): 

• Data released for 2022-23. 

• Investigates expenditure patterns on food and non-food items. 

• Survey Methodology 

Representation: 

• Conducted by the National Sample Survey Office (NSSO). 

• Detailed data on household expenditure on subsidized and non-subsidized items. 

Objective: 

• Compare expenditure patterns of PDS beneficiaries and non-beneficiaries. 

• Assess how imputation of free items influences consumption. 

Imputation of Values 

• NSSO suggests values for imputation of food and non-food items. 

• Considers out-of-pocket expenditure versus subsidized values. 

Metrics: 

• Mean Per Capita Expenditure (MPCE). 

• Imputed value included for accurate assessment. 

• Findings and Implications 

Rural and Urban Analysis: 

• Significant proportion of rural and urban expenditure attributed to food items. 

• Variation in consumption patterns observed across different economic strata. 

Poverty Line Considerations: 

• Accurate estimation of poor households critical for policy. 

• Broader discussions needed on implications for poverty estimation and social welfare benefits. 

Conclusion 

The PDS plays a pivotal role in alleviating food insecurity and influencing household expenditure patterns in India. The findings from the HCES and NSSO highlight the importance of considering imputed values in assessing true economic impact. These insights are vital for shaping policies aimed at supporting the most vulnerable sections of society. 

Multiple Choice Question: 

1. With reference to the Public Distribution System (PDS) in India, consider the following statements:

1. The PDS aims to cover up to 75% of the rural population and 50% of the urban population under the National Food Security Act (NFSA), 2013. 

1. The Household Consumption Expenditure Survey (HCES) provides estimates of the entire population’s food and non-food expenditure. 

1. The imputation of values for subsidized food items in the PDS can significantly increase the Mean Per Capita Expenditure (MPCE) of households. 

Which of the statements given above is/are correct? 

1. 1 only 

1. 1 and 3 only 

1. 2 and 3 only 

1. 1, 2, and 3 

ANSWER: B 

EXPLANATION: 

The PDS aims to cover up to 75% of the rural population and 50% of the urban population under the NFSA, 2013. 

The HCES provides detailed data on household expenditure on food and non-food items but does not provide estimates for the entire population. 

The imputation of values for subsidized food items can significantly increase the MPCE of households. 

DENGUE  

TOPIC: (GS3) SCIENCE AND TECHNOLOGY – SOURCE: DOWN TO EARTH 

The Karnataka High Court has taken suo motu cognisance of the rising spread of dengue in the state, highlighting the importance of public health interventions. 

About Dengue:  

• Dengue, also known as break-bone fever, is a mosquito-borne viral infection. 

• It is prevalent in tropical and subtropical climates, especially in urban and semi-urban areas. 

• The disease can range from asymptomatic or mild illness to severe cases, and occasionally it can be fatal. 

Transmission 

• Dengue is transmitted through the bite of infected Aedes mosquitoes. 

• These mosquitoes carry one of four types of dengue virus (DENV). 

• Dengue is not spread directly from person to person, except from a pregnant person to their child. 

• Annually, there are around 400 million dengue infections worldwide, with about 96 million causing illness. 

• A person can get infected with dengue multiple times in their life. 

Symptoms 

• Common symptoms include high fever, headache, body aches, nausea, and rash. 

• Most people recover in 1–2 weeks. 

• A small percentage develop dengue hemorrhagic fever, a severe form of the disease. 

• Severe symptoms appear as the fever starts to decrease and may include persistent vomiting, rapid breathing, blood in vomit, and bleeding gums. 

• Those infected for the second time are at a higher risk of severe dengue. 

• In severe cases, dengue can be fatal. 

Treatment 

• There is no specific medicine for dengue. 

• Treatment focuses on symptom relief, including pain relievers, bed rest, and fluid intake. 

TECHNOLOGY DEVELOPMENT FUND (TDF) SCHEME 

TOPIC: (GS3) ECONOMY – SOURCE: HINDUSTHAN TIMES 

The DRDO has sanctioned seven new projects for the private sector under the TDF scheme, further promoting innovation and self-reliance in defence technology. 

Technology Development Fund (TDF) Scheme:  

• The Technology Development Fund (TDF) Scheme aims to promote self-reliance in defence technology under the ‘Make in India’ initiative. 

• It is a Ministry of Defence initiative, carried out by the Defence Research and Development Organisation (DRDO). 

• The scheme supports public and private industries, particularly MSMEs and startups, to boost cutting-edge technology in the defence sector. 

Funding Support 

• Projects with a cost of up to INR 50 crore are eligible for funding. 

• Funding can cover up to 90% of the total project cost. 

• Collaboration with academia or research institutions is encouraged, but academic involvement must not exceed 40% of the total project cost. 

• Funding is milestone-based, with funds released either in advance against a bank guarantee or as reimbursement upon milestone completion. 

• Subsequent installments depend on the successful completion of these milestones. 

Project Duration 

• The maximum development period for a project is four years. 

Eligibility Criteria 

• Eligible entities include public limited companies, private limited companies, partnership firms, limited liability partnerships, one-person companies, and sole proprietorships registered in India. 

• The industry must be owned and controlled by a resident Indian citizen. 

• Entities with over 49% foreign investment are not eligible. 

• Startups must be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) and should have been incorporated for less than three years from the application date. 

• Nascent startups should be incubated at a government-assisted incubator. 

• Startups must not have received similar grants/grants-in-aid from any other government scheme. 

• A startup must be owned and controlled by a resident Indian citizen with a shareholding of at least 51%. 

BACTERIOPHAGE 

TOPIC: (GS3) SCIENCE AND TECHNOLOGY – SOURCE: TIMES OF INDIA 

• A bacteriophage is a type of virus that specifically infects bacteria. 

• The term “bacteriophage” means “bacteria eater” as these viruses destroy their bacterial host cells. 

• Bacteriophages, or phages, are the most common biological entities in nature and can be found wherever bacteria exist. 

Characteristics 

• Phages are found in diverse environments: soil, deep earth crust, inside plants and animals, and oceans. 

• Thousands of varieties of phages exist, each capable of infecting one or a few types of bacteria or archaea. 

• All bacteriophages consist of a nucleic acid molecule (DNA or RNA, double-stranded or single-stranded) surrounded by a protein structure. 

Infection Process 

• A bacteriophage attaches to a bacterium and infects the host cell. 

• After infection, the phage hijacks the bacterium’s cellular machinery, stopping bacterial production and forcing the cell to produce viral components instead. 

• New bacteriophages eventually assemble and burst out of the bacterium in a process called lysis. 

• During infection, phages may sometimes remove a portion of bacterial DNA and transfer it to a new host cell’s genome, a process known as transduction. 

Uses and Applications 

• Bacteriophages can destroy antibiotic-resistant bacteria, making them valuable in medical treatments. 

• Phage therapy shows promising potential in combating antimicrobial resistance (AMR). 

• Researchers have developed a new method to store, identify, and share phages, making them more accessible to patients who need them. 

THIRTY METER TELESCOPE (TMT) 

TOPIC: (GS3) SCIENCE AND TECHNOLOGY – SOURCE: THE HINDU 

Indian scientists have developed an open-source tool to generate a comprehensive all-sky catalogue of Near-Infrared (NIR) stars for the TMT’s AOS. 

This tool will significantly enhance the TMT’s ability to observe the universe by improving the performance of its adaptive optics system. 

Thirty Meter Telescope (TMT): Overview and Key Points 

• The Thirty Meter Telescope (TMT) represents a groundbreaking class of exceptionally large telescopes intended to delve deeper into space and observe celestial objects with unparalleled resolution and sensitivity. 

• It is a collaborative international project involving India, the United States, Canada, China, and Japan. 

Primary Goals 

• Explore the early universe, focusing on the formation and evolution of the first galaxies and stars following the Big Bang. 

• Investigate the formation, structure, and evolution of galaxies over cosmic time. 

• Study the interaction between supermassive black holes and their host galaxies. 

• Examine the formation of stars and planetary systems. 

• Characterize exoplanets and analyze their atmospheres. 

Key Features of the TMT 

Mirror System 

• Primary Mirror: Measures 30 meters in diameter, made up of 492 hexagonal segments. 

• Secondary Mirror: Consists of 118 smaller hexagonal segments. 

• Tertiary Mirror: Dimensions are 3.5 meters by 2.5 meters, centrally located within the primary mirror. 

• The TMT will be equipped with instruments such as the Infrared Imaging Spectrometer (IRIS) and the Wide-Field Optical Spectrograph (WFOS) for various types of observations. 

Adaptive Optics System (AOS) 

• The TMT’s adaptive optics system, known as the Narrow Field Infrared Adaptive Optics System (NFIRAOS), employs deformable mirrors and laser guide stars to correct atmospheric turbulence, thereby enhancing image clarity. 

SQUALUS HIMA 

TOPIC: (GS3) ENVIRONMENT – SOURCE: DOWN TO EARTH 

Scientists from the Zoological Survey of India (ZSI) recently discovered a new species of deep-water dogfish shark named Squalus hima off the southwest coast of India, near Kerala along the Arabian Sea. 

About Squalus hima 

• Squalus hima is a new species in the genus Squalus, part of the Squalidae family. These sharks are commonly known as spurdogs. 

• Characteristics include: 

• Smooth dorsal fin spines. 

• Angular short snout. 

• Small mouth almost as wide as the snout. 

• The first dorsal fin originates behind the pectoral fins. 

• The body is without spots. 

Exploitation and Uses 

• Squalus hima is harvested for its liver oil, which is rich in squalene (or squalane when processed). 

• Squalene is in high demand in the pharmaceutical industry, particularly for high-end cosmetic and anti-cancer products. 

Comparison with Other Species 

• On the Indian coast, there are two species of Squalus found from the southwest coast, including the newly discovered Squalus hima. 

• Squalus hima is similar to Squalus lalannei but differs in several aspects: 

• Number of precaudal vertebrae. 

• Total vertebrae count. 

• Teeth count. 

• Trunk and head heights. 

• Fin structure and colour.