22-August-2024-Daily-Current-Affairs

POWER PLAY

TOPIC: (GS3) ENVIRONMENT– SOURCE: THE HINDU

Hydropower projects are often lauded for their potential to generate renewable energy. However, the environmental and socio-economic costs associated with these projects are significant and must be carefully considered. Recent natural disasters in Sikkim highlight the need for a balanced approach to hydropower development.

Environmental Risks and Disasters:

Sikkim Landslide (2024):

• A landslide in Sikkim damaged six houses and the NHPC’s Teesta-5 hydropower station.
• This is the second disaster affecting hydropower projects along the Teesta River in less than a year.

Teesta-3 Disaster (2023):

• A glacial lake outburst in North Sikkim washed away the Chungthang dam, severely impacting the Teesta-3 project.
• Only a fraction (one-tenth) of the original 1,200 MW power output is now available.

Hydropower Potential vs. Environmental Costs:

Teesta River’s Potential:

• Originating from Tso Lhamo Lake, Teesta flows through Sikkim, West Bengal, and Bangladesh, with a significant drop in elevation, making it attractive for hydropower.
• Although 47 projects were proposed, only five have materialized, with 16 under consideration.

Challenges:

• Balancing environmental risks, insurance costs, public perception, and profitability is complex.
• The Teesta-3 project developers reportedly opted for a cheaper dam design, contributing to its failure during the flood.

Need for Comprehensive Impact Assessments:

• Environmental impact assessments (EIAs) must provide a realistic estimate of risks and costs.
• Proper assessment and mitigation strategies are crucial for maintaining public trust and ensuring long-term sustainability.

Problems of Hydropower Projects in Hilly Regions

Habitat Destruction:

• Building dams and reservoirs often means cutting down forests.
• This harms plants and animals that live there.

People Lose Their Homes:

• People who live near dams may have to move to a different place.
• This can be difficult for them because they lose their homes and jobs.

Bad for the Environment:

• Dams and reservoirs can change the way water flows.
• This can harm plants, animals, and the water itself.
• It can also release harmful gases.

Can Cause Earthquakes:

• Big dams can sometimes cause earthquakes.
• This is dangerous for people and buildings.

Challenges and Concerns:

• Exemptions from Green Clearance: Some projects are exempt, raising environmental concerns.
• Time-Consuming Process: EIA can cause delays in project implementation.
• Limited Public Participation: Minimal community involvement in implementation and monitoring.
• Neglect of Biodiversity: Biodiversity concerns are often overlooked.

Recent Developments:

• Urban Development and EIA: SC emphasized EIA’s necessity in urban planning.
• Judicial Observations: Urged for a balance between sustainable development and environmental protection.

Conclusion:

While hydropower projects offer substantial benefits, they also pose significant environmental risks. Comprehensive EIAs, coupled with careful planning and risk management, are essential to mitigate these risks and ensure that such projects are both environmentally sustainable and socially acceptable.

Multiple Choice Question:

1. Consider the following statements regarding the Teesta River:
2. The Teesta River originates from the Tso Lhamo Lake in Sikkim.
3. It flows through the states of Sikkim, West Bengal, and then into Bangladesh before joining the Bay of Bengal.
4. The Teesta River is a tributary of the Ganga River.

Which of the statements given above is/are correct?

1. 1 only
2. 1 and 2 only
3. 2 and 3 only
4. 1, 2, and 3

ANSWER: B

EXPLANATION:

The Teesta River originates from the Tso Lhamo Lake in North Sikkim.

The river flows through Sikkim and West Bengal before entering Bangladesh and ultimately joining the Bay of Bengal.

The Teesta River is a tributary of the Brahmaputra River, not the Ganga River.

POLIO OUTBREAK IN MEGHALAYA: A NEW STRAIN?

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

Meghalaya is facing a potential polio outbreak, with a two-year-old child diagnosed with the disease. While initial reports suggest it might be a vaccine-derived poliovirus, the World Health Organization (WHO) is investigating for confirmation. This development raises concerns about the state’s vaccination efforts and the potential for a wider outbreak.

Key Points:

• Case Identification: A two-year-old child from Tikrikilla, West Garo Hills district, has been diagnosed with polio.
• WHO Investigation: The WHO is conducting tests to determine if it’s a new polio strain.
• Vaccine-Derived Poliovirus: The Union Health Ministry suggests it’s likely a vaccine-derived poliovirus infection.
• Vaccination History: The affected area has a history of opposition to vaccination, raising concerns about immunization coverage.
• Potential for Wider Outbreak: The case could impact future vaccination efforts and may lead to a WHO advisory.

Conclusion

The emergence of a potential new polio strain in Meghalaya is a serious concern, particularly given the region’s history of low vaccination rates. The WHO’s investigation will be crucial in determining the exact nature of the outbreak and guiding appropriate public health responses. It’s essential to strengthen vaccination efforts and raise awareness about the importance of immunization to prevent the spread of polio.

Multiple Choice Question:

1. Consider the following statements regarding the Global Polio Eradication Initiative (GPEI):

1. The GPEI aims to eradicate all wild, vaccine-related, and Sabin polioviruses.
2. The initiative includes routine immunization, supplementary immunization, and targeted mop-up campaigns.
3. The GPEI is only implemented in India.

Which of the above statements is/are correct?

1. 1 and 2 only
2. 1 and 3 only
3. 2 and 3 only
4. 1, 2, and 3

Answer: A

Explanation:

The Global Polio Eradication Initiative (GPEI) aims to eradicate and contain all wild, vaccine-related, and Sabin polioviruses globally.

The GPEI employs key strategies such as routine immunization to ensure high coverage, supplementary immunization in at-risk areas, and targeted mop-up campaigns to vaccinate children in regions with reported cases of polio.

The GPEI is a global initiative, not limited to India. It is implemented in various countries worldwide to achieve the global eradication of polio.

GROWTH PROJECTION OF NBFCS FOR FY25

TOPIC: (GS3) ECONOMY– SOURCE: THE HINDU

Non-Banking Financial Companies (NBFCs) play a significant role in the financial sector by providing a variety of financial services and credit. Their growth trajectory and operational challenges are crucial for understanding their impact on the economy.

Growth Forecast:

• Eased Growth Rate: According to ICRA, the growth rate of NBFCs is expected to soften to 13-15% in FY25, compared to 18% in FY24. This marks a deceleration from the robust growth experienced in previous years.
• Assets Under Management (AUM): As of March 2024, the sector’s AUM stands at approximately ₹47 lakh crore. It is projected to exceed ₹50 lakh crore by FY25.

Definition and Activities:

• A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956, engaged in activities such as providing loans and advances, acquiring shares/stocks/bonds/debentures/securities issued by the government or local authorities, leasing, hire-purchase, insurance, and chit businesses.
• NBFCs exclude institutions primarily involved in agriculture, industrial activities, the purchase or sale of goods (excluding securities), and the sale/purchase/construction of immovable property.

Deposit Accepting Rules:

• NBFCs generally cannot accept traditional demand deposits from the public. They are allowed to accept time deposits only, with a minimum tenure of 12 months and a maximum of 60 months.
• They must adhere to an interest rate ceiling set by the RBI, which is currently 12.5% per annum.
• Unlike banks, NBFCs do not offer savings or current account facilities.

Regulatory Framework:

• Licensing and Regulation: The Ministry of Corporate Affairs and the RBI jointly oversee NBFCs. The RBI issues licenses, regulates operations, and enforces compliance with established norms.

Types and Classification:

• Deposit and Non-Deposit Accepting NBFCs: Based on their liability types.
• Systemically Important and Other Non-Deposit Taking NBFCs: Classified based on their asset size and impact on financial stability.
• Systemically Important NBFCs: Defined as those with an asset size of ₹500 crore or more according to the last audited balance sheet. Their activities are deemed significant for overall financial stability.

Differences from Banks:

• NBFCs do not have a banking license and cannot accept demand deposits or issue cheques.
• They are not part of the payment and settlement system.
• Deposit insurance from the Deposit Insurance and Credit Guarantee Corporation does not cover NBFC deposits.

NBFCs and Reserve Bank of India (RBI) Regulations:

• Reserve Bank of India (RBI) Oversight: While the Ministry of Corporate Affairs and the RBI jointly regulate NBFCs, the RBI plays a crucial role in overseeing their operations, particularly in terms of financial stability and consumer protection.

Types of NBFCs and Their Activities:

• Investment Banks: Provide a wide range of financial services, including investment banking, securities trading, and mergers and acquisitions.
• Mortgage Lenders: Specialize in providing loans for home purchases and refinancing.
• Insurance Companies: Offer various types of insurance products, including life insurance, property insurance, and general insurance.
• Infrastructure Finance Companies: Provide financial assistance for infrastructure projects, such as roads, bridges, and power plants.
• Private Equity Funds: Invest in equity securities of private companies.
• P2P Lenders: Facilitate lending between individuals and businesses through online platforms.

NBFCs and Financial Inclusion:

• Role in Financial Inclusion: NBFCs play a significant role in promoting financial inclusion by providing financial services to underserved segments of the population.
• Reach to Rural Areas: Many NBFCs have a wider reach than traditional banks, especially in rural areas, where they offer a variety of financial products and services.
• Microfinance Initiatives: Some NBFCs specialize in microfinance, providing small loans to individuals and businesses for income-generating activities.

Conclusion:

The projected slowdown in the growth of NBFCs highlights the sector’s current challenges, especially in terms of funding. While the sector’s AUM is set to increase significantly, the anticipated deceleration in growth underscores the need for strategic adjustments and enhanced funding strategies to sustain long-term expansion.

Multiple Choice Question:

1. Which of the following statements about Non-Banking Financial Companies (NBFCs) in India is/are correct?
2. NBFCs are regulated by the Reserve Bank of India (RBI) and are subject to the same regulations as commercial banks.
3. NBFCs are not allowed to accept demand deposits from the public.
4. NBFCs can engage in financial activities such as lending, investment, and asset management but cannot accept retail deposits.

Select the correct answer using the codes given below:

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2, and 3

ANSWER: B

EXPLANATION:

NBFCs are regulated by the Reserve Bank of India (RBI), but they are subject to different regulations compared to commercial banks. Unlike banks, NBFCs do not have the same regulatory framework, particularly concerning the acceptance of deposits and maintaining reserve ratios.

NBFCs are not allowed to accept demand deposits from the public. They can accept term deposits, but they must adhere to specific regulations that distinguish them from commercial banks.

NBFCs can engage in various financial activities, including lending, investment, and asset management. However, they are not permitted to accept retail deposits, which differentiates them from traditional banks.

SUPREME COURT REFORMS FOR BAR ASSOCIATIONS AND BAR COUNCILS

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

The Supreme Court of India has recognized issues within Bar associations and Bar Councils and is initiating reforms to address these problems. These reforms aim to enhance the functioning, transparency, and fairness of these legal bodies.

Key Issues Identified:

• High Election Expenses: Candidates for Bar body elections face excessive costs, making the election process financially burdensome and potentially unfair.
• Arbitrary Admission Criteria: Admission criteria to Bar associations and Bar Councils are seen as inconsistent and lacking transparency, which can affect the integrity of the profession.
• Poor Facilities: Many Bar bodies provide inadequate facilities, which impacts the efficiency and effectiveness of legal professionals.
• Criminal Antecedents: There are concerns about individuals with criminal backgrounds being elected as office-bearers, which undermines the credibility of Bar associations.
• Elitism Allegations: Accusations of elitism and exclusivity in Bar associations, such as those raised against the Madras Bar Association, highlight issues of fairness.

Way Forward:

• Independent Arbitrator: Appoint an independent arbitrator to resolve disputes within Bar bodies.
• Comprehensive Examination: Conduct a thorough review to identify and address systemic issues.
• Collating Suggestions: Gather input from Bar associations and State Bar Councils to develop effective reforms.
• Improving Transparency: Enhance transparency in election processes and admission criteria.
• Facility Upgrades: Invest in upgrading facilities to better support legal professionals.

What is a Bar Council?

A Bar Council regulates the legal profession, ensuring ethical standards, overseeing lawyer admissions, and handling disciplinary actions. In India, the Bar Council of India (BCI) sets national standards, while state Bar Councils manage local matters and support legal professionals.

STRENGTHENING INDIA-AFRICA RELATIONS: LEVERAGING AFRICA’S MINERAL WEALTH

TOPIC: (GS2) INTERNATIONAL RELATIONS – SOURCE: THE HINDU

Africa’s vast mineral resources are crucial for various industries and technologies. For India, these resources are vital for advancing technology and industrial growth. Strengthening the partnership between India and Africa can lead to significant benefits for both regions.

Africa’s Mineral Potential:

Rich Resources:

• Africa is abundant in minerals like rare earth elements, lithium, and cobalt. These are essential for technologies such as electric vehicle batteries and renewable energy systems.
• The continent also has large deposits of gold, platinum, diamonds, bauxite, and phosphate, which are important for industrial and technological applications.

Global Tech Support:

• These minerals support global tech advancements and industrial growth, making Africa a key player in the global supply chain.

India-Africa Collaborative Partnership:

• Trade Expansion: The goal is to double trade between India and Africa over the next seven years. This expansion offers substantial economic benefits to both regions.
• Mineral Resources: Africa’s minerals can fulfill India’s need for critical materials required for electric vehicles and renewable energy technologies.
• Sustainable Mining: Joint efforts in mining can lead to sustainable practices that benefit both the environment and the economy.
• Technology Partnerships: India’s Digital Public Infrastructure can help Africa adopt new technologies, promoting financial inclusion and digital growth.
• Agricultural Collaboration: India can aid Africa’s agriculture by exporting crops such as oilseeds and pulses.
• MSME and Entrepreneurship: Enhancing cooperation in micro, small, and medium enterprises (MSMEs) can create jobs and stimulate economic development.
• Financial Assistance: India has provided over $12 billion in aid to Africa through 196 Lines of Credit, benefiting more than 42 countries.
• Cultural and Sports Exchanges: Strengthening cultural and sports connections can foster better mutual understanding.
• Startup Ecosystems: Collaboration between Indian and African startups can drive innovation and business growth.
• South-South Cooperation: Promoting these partnerships aligns with global goals for cooperative development and mutual progress.

REVISED APPROACH TO ORANGUTAN CONSERVATION IN MALAYSIA

TOPIC: (GS3) ENVIRONMENT – SOURCE: THE HINDU

Malaysia’s Plantation and Commodities Minister Johari Ghani has updated his proposal concerning orangutan conservation. Initially, the plan involved gifting endangered orangutans to countries that purchase Malaysian palm oil. The revised approach focuses on sponsoring these animals to support their conservation within Malaysia.

Initial Proposal:

‘Orangutan Diplomacy’:

• In May 2023, Ghani proposed gifting orangutans to palm oil-importing countries, inspired by China’s “panda diplomacy.”
• The idea was to address concerns about the environmental impact of Malaysia’s palm oil industry, particularly its role in deforestation and habitat loss for orangutans.

Sustainability Efforts:

• Malaysia, a major palm oil producer, faces pressure to enhance the sustainability of its industry.
• Ghani aimed to show Malaysia’s commitment to environmental conservation and sustainable palm oil production.

Criticism and Response:

Backlash:

• The proposal faced criticism from wildlife conservationists, who argued that Malaysia should prioritize habitat protection over gifting orangutans.
• Critics noted that Malaysia’s approach lacked the infrastructure and protections seen in China’s panda conservation efforts.

Revised Approach:

• The updated plan involves offering sponsorships for orangutans, with funds dedicated to their conservation within Malaysia.
• This change aims to address conservationists’ concerns and improve protection measures for orangutans.

TEESTA-V HYDROPOWER STATION AND TEESTA RIVER

TOPIC: (GS3) ENVIRONMENT – SOURCE: TIMES OF INDIA

Recently, a landslide caused damage at the Teesta-V hydropower station in Sikkim, affecting nearby houses and NHPC infrastructure.

Teesta-V Hydropower Station:

Project Overview:

• The Teesta-V is a 510 MW hydropower station situated on the Teesta River basin in Gangtok, Sikkim.
• It is a run-of-river project with an 88.6-meter high, 176.5-meter long concrete gravity dam, creating a reservoir for daily power regulation.
• Developed by NHPC, the project began construction in 1999 and became operational in 2008.

Ownership and Operation:

• The National Hydroelectric Power Corporation (NHPC) owns and operates the Teesta-V project.

Teesta River:

River Facts:

• The Teesta River is a trans-Himalayan River flowing through Sikkim, West Bengal (India), and Rangpur (Bangladesh).
• It is a tributary of the Brahmaputra River and forms a boundary between Sikkim and West Bengal.

Course and Length:

• The river originates near Chunthang in Sikkim, cutting through the Siwalik Hills and flowing southeast.
• It traverses through the Sivok Khola pass into West Bengal’s plains and eventually changed its course around 1787 to flow into the Jamuna River in Bangladesh.
• The Teesta River spans approximately 309 kilometers and drains an area of 12,540 square kilometers.

Major Tributaries:

• Left-bank: Lachung Chhu, Chakung Chhu, Dik Chhu, Rani Khola, Rangpo Chhu.
• Right-bank: Zemu Chhu, Rangyong Chhu, Rangit River.

SLOW LORIS

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

Recently, villagers in Shimlabagan, Assam, reported sightings of the endangered Slow Loris. This rare primate is notable for its unique characteristics and ecological role.

About Slow Loris:

Habitat and Distribution:

• Slow lorises are native to South and Southeast Asia.
• They are the only venomous primates in the world.
• Nine species exist, including the Bengal slow loris, which is found in India’s northeast and is listed as Endangered by the IUCN.

Physical Features:

• Slow lorises have large, round eyes adapted for night vision.
• They possess compact bodies, short snouts, dense fur, and distinctive facial markings.
• Their length ranges from 20 to 37 centimeters (10 to 15 inches).

Venom and Défense:

• They secrete oil from a bare patch under their arms, which they lick to mix with saliva.
• This mixture creates a venom used to defend against threats and kill small prey.

Behaviour and Diet:

• These nocturnal animals are arboreal, spending most of their time in trees.
• They are skilled hunters, using their slow movements to catch insects and small vertebrates.
• Slow lorises are solitary and territorial, known for their ability to stay still for long periods.

Special Features:

• They have a specialized toothcomb for grooming and extracting gum from trees.
• Slow lorises are omnivores, feeding on a variety of food sources.