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Time: 45 min Date: 20-10-2021

Science & Technology

GMO Rice from India Withdrawn in EU

Syllabus/ GS 3/ Indian Economy & related issues, GS3/Science and Technology

In News

● Recently, candy giant Mars Wrigley carried out a mass recall of several batches of

its Crispy M&Ms across Europe.

○ It was due to the use of Genetically Modified rice flour that allegedly

originated in India, according to the European Commission’s rapid alert

system.

India’s Response

● The Commerce Ministry pointed out that GM rice is not grown commercially in

India, let alone export.

○ India also promised a thorough enquiry by its agricultural exports

authority.

○ The Ministry alleged that the case was a “futile conspiracy to malign the

image of India as a reliable food security provider”.

○ India suspected that the GM ingredient may have been added in Europe to

cut costs, not in India where commercial GM cultivation is banned.

■ The reason behind such suspicion is the quantity involved is too big.

■ Such high quantities can not come from the leaked output from

controlled trial cultivation.

GM Food

● GM Food is food with modified genes for certain traits.

○ Their properties are altered in order

■ To enhance their pest resistance like in BT Cotton, DMH-11 Mustard.

■ To enhance nutritional values like Golden Rice.

● Commercially in India, only BT Cotton can be grown.

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○ Worried farmers groups and environmental activists, however, noted that

multiple GM rice varieties have been approved for confined field trials.

○ They have warned that any cross-contamination could dampen the

country’s agricultural export ambitions.

● The approval and regulation for GM crops in India is done by the Genetic

Engineering Appraisal Committee (GEAC).

● In August 2020, FSSAI had also issued the order that 24 food crops the country

imports would need a ‘non-GM-origin-cum-GM-free certificate’.

Indian Export of Rice

● India’s annual rice exports amount to 18 million tonnes worth ₹ 65,000 crores and

reach more than 75 countries.

● According to the European Commission’s Rapid Alert System for Food and Feed,

500 tonnes of broken rice was imported from India.

○ It was converted into rice flour by a French company named Westhove and

was flagged during a regular check.

● On June 21, France issued a notification for unauthorised genetically modified rice

flour, identifying India as the point of origin.

○ It also alerted Austria, Belgium, the Czech Republic, Germany, Italy,

Netherlands, Poland, Spain, the United Kingdom and the United States as

the possible destination of products made with flour.

● Since 2007, India’s rice trade has increased from just ₹ 7,000 crores to more than

₹ 63,000 crores.

○ At the end of the day, it is Indian farmers and exporters who have much to

lose.

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Farmers’ Groups Apprehensions and Steps

● Farmers groups have highlighted the issue of cross-contamination from field trials.

● The issue with GM field trials is that once they take place, they can contaminate

crops long after the actual trials either directly or through seed leakages.

○ E.g. 2006 case, where a Bayer food trial contaminated rice and seeds in the

U.S., leading to a plunge in exports from that country.

● Back in 2007, there was widespread concern about GM rice trials and the

possibility of cross-contamination.

○ The All India Rice Exporters Association took up the issue with the

Department of Biotechnology and the Genetic Engineering Appraisal

Committee.

○ A policy decision was taken that field trials would not be allowed in the

basmati belt, because of worries that the export crop could be affected.

● Further, the farmer groups have highlighted the issue of unauthorised HtBt Cotton

and Bt Brinjal being grown commercially.

○ Taking no action against such brazen violations creates the image of a

country that is not serious about health or its food supply chain.

○ It is not good for exports.

● Hence they are demanding

○ a ban on field trials,

○ slapping liability for illegal release of GMOs into the environment on

developers, and

○ a probe to identify the source of the GM rice contamination among other

steps to deal with the problem.

Conclusion and Way Ahead

● India must pay heed to farmers’ apprehensions and ensure the quality check on

food items exported.

● GEAC, FSSAI and APEDA, etc must train all the stakeholders to ensure that GM

crops can not even accidentally creep into the food chain.

Source: TH, DTE

Internal Security

Rising Cyberattacks from China

Syllabus: GS 3/Cyber Crime & Security

In News

● The rising cyberattacks from China on critical installations was discussed at the

National Security Strategies Conference chaired by the Union Home Minister.

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Reasons for increasing Cyber Attacks in India

● Adverse relations with China: China is considered one of the world leaders in

information technology. Therefore, it is expected to have capabilities to disable or

partially interrupt the information technology services in another country.

○ Combined with the recent border standoff and violent incidents between

the armies of the two countries, the adversity in relations is expected to spill

over to attacking each other’s critical information infrastructure.

● Asymmetric and covert warfare: Unlike conventional warfare with loss of lives

and eyeball to eyeball situations, cyber warfare is covert warfare with the scope of

plausible deniability, i.e. the governments can deny their involvement even when

they are caught.

○ Similarly, even a small nation with advanced systems and skilled

resources can launch an attack on a bigger power, without the fear of heavy

losses.

○ Therefore, cyber warfare has increasingly become the chosen space for

conflict between nations.

● Increasing dependency on technology: As we grow faster, more and more

systems are being shifted to virtual space to promote access and ease of use.

○ However, the downside to this trend is the increased vulnerability of such

systems to cyber-attacks.

■ For e.g. there is a concern of widespread damage and huge loss if

hackers are able to intrude into the nuclear, financial or energy

systems of a country.

■ Since almost all sectors of an economy are dependent upon power,

the takedown of the power grid can substantially impact the

economy.

■ Growing digital reliance in the post-COVID era has exposed digital

disparities which must be bridged through capacity building.

● There’s a sophisticated use of cyberspace by terrorists to broaden their

propaganda and incite hatred.

● Lack of robust law enforcement mechanisms: India’s approach to cyber security

has so far been ad hoc and unsystematic.

○ Despite a number of agencies, policies and initiatives, their

implementation has been far from satisfactory.

● Lack of International Coordination: International cooperation and consensus is

missing in this field.

● Low digital literacy among the general public and digital gaps amongst nations

create an unsustainable environment in the cyber domain.

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○ It is often reported that people are duped easily by click-baiting them into

clicking interesting content, which often has malware attached to itself.

● Poor cybersecurity infrastructure

● State-sponsored cyber attacks

● Increased internet usage and technology advancement like 5G, IoT, crypto etc.

India’s Preparedness to Ensure Cybersecurity

● Information Technology Act, 2000 (Amended in 2008): It is the main law for

dealing with cybercrime and digital commerce in India.

○ National Critical Information Infrastructure Protection Centre (NCIIPC)

was created under Section 70A of IT Act 2000 to protect

Cyberinfrastructure.

● Banning of unsafe apps: India had banned apps that posed a threat to security.

○ India had banned many apps (mostly of Chinese origin), which were found

to be unsafe for usage by Indian citizens.

○ The apps were allegedly transferring data to the servers located outside

India and did not have proper safeguards to ensure that the private data of

Indian citizens were protected from unauthorized access.

● Awaited National cybersecurity strategy: Comprehensive plan in preparing &

dealing with cyber-attacks (Pre, Post and During the attack).

● Indian Cyber Crime Coordination Centre (I4C): Launched in 2018, It is an apex

coordination centre to deal with cybercrimes.

● Evolving Technology: Cyber attackers are continuously working on novel ways

to sabotage the systems.

● Human Resource: Anyone in cybersecurity needs to be an equally potent hacker.

● CERT-In (Cyber Emergency Response Team, India): It is National Nodal Agency

for Cyber Security and is Operational since 2004

● National Cyber Security Policy, 2013: The policy provides the vision and strategic

direction to protect the national cyberspace.

● Cyber Swachhta Kendra: Cyber Swachhta Kendra helps users to analyse and keep

their systems free of various viruses, bots/ malware, Trojans, etc.

○ Launched in early 2017.

● Indian Cyber Crime Coordination Centre (I4C): Launched in 2018, It is an apex

coordination centre to deal with cybercrimes.

● Cyber Surakshit Bharat: It was launched by the Ministry of Electronics and

Information Technology (MEITy) in 2018 with an aim to

○ spread awareness about cybercrime and

○ building capacity for safety measures for Chief Information Security

Officers (CISOs) and frontline IT staff across all government departments.

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● The Cyber Warrior Police Force: It was organised on the lines of the Central

Armed Police Force in 2018.

● Personal Data Protection Bill: The bill mandates the strengthening of data

infrastructure by the private companies to safeguard the data of individuals.

● Therefore, there is a focus on including the private companies in the ambit of data

protection, rather than restricting it to the government only. This is also important

as the private sector may provide an entry point to the attackers compromising the

integrity of the system.

International Efforts in this direction

● Budapest Convention: 1st international treaty to address cybercrime; India is

not a signatory.

● Internet Corporation for Assigned Names and Numbers (ICANN): US-based

not-for-profit organisation for coordinating & maintenance of several databases.

● Internet Governance Forum: UN forum for multi-stakeholder policy dialogue

on Internet governance issues.

What more needs to be done in this context?

● Human Resource Development: Human resource is crucial and there is an urgent

need to create an informal Indian team of Cyber Warriors.

● Infrastructure Strengthening: The critical infrastructure managers should also be

well trained in cyber warfare and well equipped with all the technologies for

isolating viruses and attacks.

● Mock Drills using White Hackers: There should be a reward for white hackers

who can highlight the shortcomings.

● Awareness: The managers and Common mass must be made aware.

○ There is a need to enhance the general awareness levels of the government

installations as well as the general public to counter such threats.

● Involvement of the Private Sector: Often the private sector is seen as a key

innovator and their help can be crucial in securing cyberspace.

● Separate wing under Army or Navy as Cyber Command on lines of US

● Strengthening the policy and ecosystem: The need of the hour is to come up with

a futuristic National Cyber-Security Policy which allocates adequate resources and

addresses the concerns of the stakeholders. Similarly, there is a need for quicker

up-gradation of the existing infrastructure as information technology is a fast-

evolving field and there is a need to stay ahead of the competition.

Source: TH NEXT IA

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Indian Economy

World Gold Council

Syllabus: GS3/ Indian Economy & related issues

In News

● A report released by the World Gold Council (WGC) has identified inflation as

the strongest factor influencing gold demand in India in the short term.

○ However, in the long term, income rather than inflation becomes the key

driver of demand for gold.

Gold & Economy Linkage

● Gold was used as the world reserve currency up through most of the 20th century.

The United States used the gold standard until 1971.

● Hedge against inflation: The demand for gold increases during inflationary times

due to its inherent value and limited supply. As it cannot be diluted, gold is able

to retain value much better than other forms of currency.

● Affect on Currency: When a country imports more than it exports, the value of its

currency will decline. On the other hand, the value of its currency will increase

when a country is a net exporter. Thus, a country that exports gold or has access

to gold reserves will see an increase in the strength of its currency when gold prices

increase, since this increases the value of the country’s total exports.

Contribution of Yellow Metal in the Indian Economy

● Gems and jewellery industry: The gems and jewellery sector in India is one of the

largest in the world and contributes to about 29 per cent of global consumption.

○ The industry contributes around 7 per cent of the country's gross domestic

product (GDP) and 15.71 per cent to India's total merchandise exports.

○ Nearly 65 per cent of jewellery manufactured in India is handmade

● Gold mining: It provides significant sustainable socio-economic development to

India. The gold mining industry has largely been insignificant in the country.

About 45,000 ounces were mined in 2015.

○ At a country level, China was the largest producer in the world in 2016

(about 463.7 tonnes) and accounted for around 14 per cent of total global

production.

● Gold refining: The refining sector has seen a sharp rise in new capacity in recent

years. India's total refining capacity is now above 1,450 tonnes.

● Impact on the current account deficit: India's gold imports contribute to the

second largest part of the import bill after oil.

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● Exports: India is one of the largest exporters of gems and jewellery and the

industry is considered to play a vital role in the economy as it contributes a major

chunk to the total foreign reserves of the country.

○ UAE, the US, Russia, Singapore, Hong Kong, Latin America, and China are

the biggest importers of Indian jewellery.

● Unaccounted Gold: India has a stock of about 23,000-24,000 tonnes of gold which

is mostly held by households.

○ India is the second-largest consumer of Gold and gold smuggling has been

a perennial problem in India.

Gold Monetization Scheme ● This was launched to mobilize gold lying idle in households and institutions and

put them to productive use and reduce the import bill. ● Features:

○ The people are encouraged to deposit their gold in the banks and earn interest rather than lying idle in their homes unproductively

○ All the scheduled commercial banks (except Regional Rural Banks) can implement this scheme.

○ The persons can open Gold Saving Accounts in designated banks and anyone can deposit physical gold (via BIS certified collection, purity testing centres (CPTCs)).

○ The minimum amount of gold thus deposited is 30 gm and has no upper limit.

● Eligibility for deposition: ○ Resident Indians ○ Hindu undivided family ○ Trusts ○ Mutual funds/Exchange-traded funds registered under SEBI ○ Companies

Sovereign Gold Bond (SGB) Scheme ● Its objective is to reduce demand for physical gold by shifting a part of the gold

purchase by people to invest in gold bonds. ● Features:

○ The bonds are issued by the Reserve Bank of India on behalf of the Government of India.

○ The SGBs are denominated in multiples of one gram of gold. ○ The tenure of the bond is 8 years with an exit option starting from the

5th year onwards. ○ The bonds will be sold both in Demat and paper format. ○ These bonds are sold through scheduled commercial banks (Except small

finance banks, payment banks, RRBs), designated post offices, Stockholding Corporation of India Ltd, trading members authorized by SEBI, stock exchanges.

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○ Eligibility: Resident Indian entities include: ■ Individuals ■ Hindu undivided families (HUF) ■ Trusts ■ Universities ■ Charitable institutions

About World Gold Council (WGC)

● It is a nonprofit association of the world's leading gold producers.

● The WGC covers the markets which comprise about three-quarters of the world's

annual gold consumption.

● Headquartered in London, they have offices in India, China, Singapore, Japan

and the United States.

● It is a market development organization for the gold industry which includes 25

● members and many gold mining companies as well.

● The WGC was established to promote the use of and demand for gold through

● marketing, research and lobbying.

Source: LM

International relations

Kushinagar International Airport

Syllabus :GS 2/India & Foreign Relations

In Context

● Recently, the Prime Minister of India inaugurated the Kushinagar International

Airport.

About

● The Kushinagar Airport in Uttar Pradesh is the latest entrant in India's list of

international Airports.

● The airport is expected to provide seamless connectivity to people from Southeast

and East Asian countries for Buddhist Pilgrimage Tourism.

● Kushinagar is the centre of the Buddhist circuit, which consists of pilgrimage sites

at Lumbini, Sarnath, Gaya and others.

Kushinagar Airport

● The inauguration of Kushinagar International airport is set to be a landmark in

India-Sri Lanka relations.

● Expected outcomes:

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○ It will facilitate pilgrims from across different parts of the world by

providing seamless connectivity to various Buddhist sites in the region.

■ The airport is expected to provide seamless connectivity to tourists

from Sri Lanka, Japan, Taiwan, South Korea, China, Thailand,

Vietnam, Singapore, etc.

○ It will have a multiplier effect on the hospitality industry by promoting

hotel business, tourism agencies, restaurants etc.

○ It will create employment for local people by opening an immense amount

of opportunities in feeder transport services, local guide jobs etc.

○ This will also boost the opportunities for the export of horticultural

products like bananas, strawberries and mushrooms.

About Kushinagar ● Kushinagar and Kasia Bazar is a town and a historical place located in the

northeastern marginal area of Uttar Pradesh.

● The name “Kasia Bazar” has been changed to Kushinagar and after that “Kasia

Bazar” has officially become a municipality with the name “Kushinagar”.

● Kushinagar is the centre of the Buddhist circuit, which consists of pilgrimage

sites at Lumbini, Sarnath and Gaya.

● Buddhist pilgrims consider Kushinagar a sacred site where, they believe,

Gautama Buddha delivered his last sermon and attained ‘Mahaparinirvana’ or

salvation and was cremated at Ramabhar at Mukut Bandhan.

● Kushinagar also finds a mention in the accounts of Chinese travellers Fa Hsien

and Hieun Tsang.

India and Sri Lanka Bilateral Relations ● Historical: India and Sri Lanka have a legacy of intellectual, cultural, religious

and linguistic interaction and the relationship between the two countries is more

than 2500 years old.

○ Trade and investment have grown and there is cooperation in the fields of

development, education, culture and defence.

● Commercial Relations: India and Sri Lanka enjoy a vibrant and growing economic

and commercial partnership, which has witnessed considerable expansion over

the years.

○ The entry into force of the India-Sri Lanka Free Trade Agreement (ISFTA)

in 2000 contributed significantly towards the expansion of trade between

the two countries.

○ India has traditionally been among Sri Lanka’s largest trade partners and

Sri Lanka remains among the largest trade partners of India in the SAARC.

○ In 2020, India was Sri Lanka’s 2nd largest trading partner with the bilateral

merchandise trade amounting to about USD $ 3.6 billion.

○ In addition to being Sri Lanka’s largest trade partner, India is also one of

the largest contributors to Foreign Direct Investment in Sri Lanka.

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● Development Cooperation: Sri Lanka is one of India’s major development

partners and this partnership has been an important pillar of bilateral ties between

the two countries over the years.

○ The Indian Housing Project: It is a flagship project of the Government of

India.

■ India is providing developmental assistance to Sri Lanka in the form

of 50,000 houses.

● Projects under Lines of Credit: 11 Lines of credit (LOC) have been extended to Sri

Lanka by the Export-Import Bank of India in the last 15 years. Important sectors

in which Projects have been executed/ are under execution, under these LOCs

include Railway, transport, connectivity, defence, solar.

● Currency Swap Agreements: RBI had signed an agreement for extending a USD

400 million currency swap facility to Sri Lanka.

● It is expected to boost the foreign reserves and ensure the financial stability

of the country, which was badly hit by the Covid-19 pandemic.

● Cultural relations: India and Sri Lanka have a shared legacy of historical, cultural,

religious, spiritual and linguistic ties that is more than 2,500 years old.

○ In contemporary times, the Cultural Cooperation Agreement signed by the

Government of India and the Government of Sri Lanka on 29 November

1977 at New Delhi forms the basis for periodic Cultural Exchange

Programmes between the two countries.

● Buddhism is one of the strongest pillars connecting the two nations and

civilizations from the time when the Great Indian Emperor Ashoka sent his

children, Arahat Mahinda and Their Sangamitta to spread the teachings of

Lord Buddha at the request of King DevanampiyaTissa of Sri Lanka.

● Tourism: Tourism also forms an important link between India and Sri Lanka.

○ The government of India formally launched the e-Tourist Visa (eTV)

scheme for Sri Lankan tourists on 14 April 2015.

● Fishermen issue

○ Given the proximity of the territorial waters of both countries, especially in

the Palk Straits and the Gulf of Mannar, incidents of straying of fishermen

are common.

○ Both countries have agreed on certain practical arrangements to deal with

the issue of bona fide fishermen of either side inadvertently crossing the

International Maritime Boundary Line.

○ India and Sri Lanka have agreed to set up a Joint Working Group (JWG) on

Fisheries between the Ministry of Agriculture and Farmers Welfare of India

and Ministry of Fisheries and Aquatic Resources Development of Sri Lanka

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as the mechanism to help find a permanent solution to the fishermen issue.

● Indian Community: The People of Indian Origin (PIOs) comprise Sindhis, Borahs,

Gujaratis, Memons, Parsis, Malayalis and Telugu speaking persons who have

settled down in Sri Lanka (most of them after partition) and are engaged in various

business ventures.

● Joint Exercises:

○ Joint Military Exercise: Mitra Shakti

○ Naval exercise: SLINEX

Source: TH

Indian Economy

Gross NPAs of Banks

Syllabus: GS3/ Inclusive growth and issues arising from it

In News ● A report by Crisil Ratings stated that gross non-performing assets (NPAs) of banks

are expected to rise to 8-9% this fiscal from 7.5% as on March 31.

Key Findings ● NPA of Banks:

○ Gross non-performing assets (NPAs) of banks are expected to increase to 8-9 per cent in the current financial year.

○ But gross NPAs of banks would still remain below the peak of 11.2% seen at the end of fiscal 2018.

● Retail and MSME: ○ The retail and MSME segments, which together form 40% of bank credit,

are expected to see higher accretion of NPAs and stressed assets this time around.

○ Operationalisation of the National Asset Reconstruction Company Ltd

(NARCL) by the end of this fiscal and the expected first-round sale of ₹ 90,000 crores NPAs could lead to lower reported gross NPAs.

● COVID-19 relief measures: ○ Such as the restructuring dispensation and the Emergency Credit Line

Guarantee Scheme (ECLGS) would help limit the rise. ● Bank credit:

○ With 2% of bank credit expected under restructuring by the end of this fiscal, stressed assets — comprising gross NPAs and loan book under restructuring — should touch 10-11%

● Rural Segment: ○ The rural segment, which was hit harder during the second wave of the

pandemic, has also seen a strong recovery.

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○ Therefore, stressed assets in the agriculture segment are expected to remain

relatively stable, the rating agency pointed out.

● Base-case scenario:

○ The estimates were predicated on a base-case scenario of 9.5% GDP growth

this fiscal and continued improvement in corporate credit quality.

○ A virulent third wave and significant deceleration in demand growth could

pose significant downside risks to these estimates, it added.

Non-Performing Asset (NPA)

● NPAs are loans or advances made by a financial institution, on which both

principal or interest is unpaid for a specified period of time.

● Thus, NPAs are those loans that have ceased to generate income for the bank.

Types of NPA

● Sub Standard: A sub-standard asset is one that is classified as an NPA for a period

not exceeding twelve months.

● Doubtful: A doubtful asset is one that has remained as an NPA for a period

exceeding twelve months.

● Loss: A loss asset is one where loss has already been identified by the bank or an

external institution, but it is not yet completely written off, due to its recovery

value, however little it may be.

Issues with NPA

● Needs Provisioning: The bad loans lead to banks’ having to save a part of their

operating revenue to account for bad loans. This is called Provisioning. The

technical term used for provisioning is Capital Adequacy Ratio (CAR) or Capital

to Risk (weighted) Assets Ratio (CRAR).

● Loss of Profit: The banks are required to provision for bad loans out of their

operating income. The concerned bank becomes less profitable because it has to

use some of its profits from other loans to make up for the loss on the bad loans.

● Becomes Risk-averse: The officials of such banks hesitate from extending loans to

business ventures that may remotely appear risky for the fear of aggravating an

already high level of non-performing assets (or NPAs).

● Affects Valuation: Any reduction in the perceived valuation of the banks might

lead to loss of share value of the banks, leading to general downfall in the share

markets. This could result in wiping out shareholders' wealth from the financial

markets.

● Rising Bad Loans: In spite of various efforts, a substantial amount of NPAs

continue on the balance sheets of banks primarily because the stock of bad loans

as revealed by the Asset Quality Review is not only large but fragmented across

various lenders.

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(Image Courtesy: BS )

Various Steps Taken for NPA ● Insolvency and Bankruptcy Code (IBC); ● Strengthening of Securitization and Reconstruction of Financial Assets and

Enforcement of Securities Interest (SARFAESI Act) and Debt Recovery Tribunals; ● Setting up of dedicated Stressed Asset Management Verticals (SAMVs) in banks

for large-value NPA accounts etc. ● Existing ARCs have been helpful in the resolution of stressed assets, especially for

smaller value loans. ● However, considering the large stock of legacy NPAs, additional

options/alternatives are needed.

Bad Bank

● An Asset Reconstruction Company (ARC) or Bad Bank is a specialized financial institution that buys stressed assets from banks and financial institutions.

● Asset reconstruction is the purchase of title or rights of the banks or financial institutions in loans, bonds, debentures, etc., for the sole purpose of its recovery or realization.

● Banks can sell their stressed or bad assets to the ARC at a mutually agreeable price, thereby helping banks to clean up their balance sheets and concentrate on delivering normal banking services.

● Thereafter, it is the responsibility of the ARC to recover the bad debts or associated securities in a market-led process.

Source: TH

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Indian Economy

High International Fuel Prices & Its Impacts

Syllabus: GS 3/Indian Economy & Related Issues

Context

● As the global recovery gains strength, the price of crude oil is nearing its highest

level since 2018.

○ The price of natural gas and coal are hitting record highs amid an

intensifying energy shortage.

Major Reasons for Rising Fuel Prices

● Increase in global demand: The price of Brent crude breached the $85 per barrel

mark earlier, reaching its highest level since 2018 on the back of a sharp increase

in global demand as the world economy recovers from the pandemic.

● Gradually increase in oil supplies: Key oil-producing countries have kept crude

oil supplies on a gradually increasing production schedule despite a sharp increase

in global crude oil prices.

○ The price of Brent crude has nearly doubled compared to the price of $42.5

per barrel a year ago.

● OPEC+ Group Decision: In its latest round of meetings, the OPEC+ group of oil-

producing countries reaffirmed that they would increase the total crude oil supply

by only 400,000 barrels per day in November despite a sharp increase in prices.

○ The output of the top oil-producing countries – Saudi Arabia, Russia, Iraq,

UAE and Kuwait — would still be about 14 per cent lower than reference

levels of production post the increase in November.

○ OPEC+ had agreed to sharp cuts in supply in 2020 in response to Covid-19

global travel restrictions in 2020 but the organisation has been slow to boost

production as demand has recovered.

● Natural gas deliveries to Asia hit an all-time high of $56.3 per MMBtu (Metric

Million British Thermal Unit) for deliveries in November.

● Disruptions caused by hurricane:

○ Supply-side issues in the US including disruptions caused by hurricane Ida

and lower than expected natural gas supplies from Russia amid increasing

demand in Europe have raised the prospect of natural gas shortages in the

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Image Courtesy: IE

● Coal factor: International coal prices have also reached all-time highs as China

faces a coal shortage that has led to factories across China facing power outages.

○ A faster than expected recovery in global demand has pushed the price of

Indonesian coal up from about $60 per tonne in March to about $200 per

tonne in October.

Impacts on India

● Crude oil prices: High crude oil prices have contributed to the rise in the prices

of petrol and diesel.

○ And, India has seen a faster recovery in the consumption of petrol than of

diesel after pandemic-related restrictions.

● Diesel: Diesel accounts for about 38 per cent of petroleum product consumption in

India and is a key fuel used in industry and agriculture.

○ S&P Global Platts Analytics noted in a report that demand for diesel in

India is expected to go up in the next few months with the upcoming festive

season set to accelerate the economic recovery and push up diesel

consumption.

● Natural gas: High international gas prices have led to an upward revision in the

price of domestically produced natural gas.

○ The increase in gas prices has put upward pressure on the price of both

Compressed Natural Gas (CNG) used as a transport fuel and Piped Natural

Gas (PNG) used as cooking fuel.

● Coal: High international prices of coal have added to a coal shortage at India’s

thermal power plants by forcing thermal plants using imported coal that could not

pass on the higher price of coal to procurers to stop supplying power.

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○ Low coal stocks at a number of coal-fired thermal power plants have led to

power outages in a number of states including Punjab and Rajasthan and

have forced states to buy power at well above normal prices on the power

exchange.

● Impact on currency: Rising crude prices tend to depress the rupee, as India is a

major importer of oil needs more dollars to buy the same amount of crude.

○ A surge in crude prices tends to increase India’s expenditure and adversely

affects the fiscal deficit.

Steps Taken by India

● India and other oil-importing nations have called on OPEC+ to boost oil supply

faster, arguing that elevated crude oil prices could undermine the recovery of the

global economy.

● India has asked state refiners to speed up the diversification of oil imports to

gradually cut their dependence on the Middle East after the OPEC+ decision.

● The country’s top refiner Indian Oil Corporation (IOC) has also renewed its oil

import contract with Russia.

● India is also hoping to resume Iranian oil imports.

What more needs to be done in this context?

● ONGC should boost its investments in explorations and increase tie-ups with

foreign players.

● Producers should be provided with enough technological support in extracting oil

and gas from difficult oil and gas fields.

● The government should make the current system of auction and regulation more

open and transparent than before and also convey this to foreign players.

● Also, it should provide fiscal incentives to attract foreign players to India’s

upstream sector.

● The cess on domestically produced crude oil should be reduced so that the sector

sees more private sector involvement.

● Efforts should be fastened in boosting oil and gas production under the

government's Atma Nirbhar Bharat initiative, which aims to boost the use of

natural gas in India’s primary energy mix from the current 6.2 per cent to 15 per

cent by 2030.

About OPEC

● The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.

○ Libya, UAE, Algeria, Nigeria, Angola, Gabon, Equatorial Guinea and Congo joined it later.

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● The OPEC Secretariat is the executive organ of the Organization of the Petroleum Exporting Countries (OPEC). Located in Vienna.

OPEC+ ● In 2016, OPEC allied with other top non-OPEC oil-exporting nations to form an

even more powerful entity named OPEC+ or OPEC Plus. ● The Declaration of Cooperation (DoC) constitutes an unprecedented milestone

in the history of OPEC as under it, for the first time ever, OPEC countries coordinated with 11 non-OPEC oil-producing countries (now 10 as Equatorial Guinea became a member).

○ The 10 of the world's major non-OPEC oil-exporting nations are Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.

● Objectives: ○ To coordinate and unify the petroleum policies of its Member Countries. ○ To ensure the stabilization of oil markets in order to secure an efficient,

economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.

Source: IE

Facts In News

Health

Sowa -Rigpa

Syllabus: GS2/ Health

In News

● UGC has issued notification regarding the recognition of Bachelor of Sowa Rigpa

Medicine and Surgery (BSRMS) of a minimum of five years.

○ 10+2 is mandatory for admission.

What is Sowa -Rigpa (Science of healing)?

● It is commonly known as the Amchi system of medicine is one of the oldest, living

and well documented medical traditions of the world.

● It has been a popular practice in Tibet, Magnolia, Bhutan, some parts of China,

Nepal, Himalayan regions of India and few parts of the former Soviet Union etc.

● In India, this system has been practised in Sikkim, Arunachal Pradesh, Darjeeling

(West Bengal), Lahoul & Spiti (Himachal Pradesh) and Ladakh region of Jammu&

Kashmir etc.

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● The majority of theory and practice of Sowa-Rigpa is similar to “Ayurveda”.

● Yuthog Yonten Gonpo from Tibet is believed to be the father of Sowa Rigpa.

● Theory of Sowa-Rigpa:

○ The basic theory of Sowa-Rigpa may be adumbrated in terms of the

following five points:

○ The body in disease as the locus of treatment;

○ Antidote, i.e., the treatment;

○ The method of treatment through antidote;

○ Medicine that cures the disease;

○ Materia Medica, Pharmacy & Pharmacology

Source: PIB

Science and Technology

Nebra Sky Disc

Syllabus: GS 3/Developments, Applications & Effects on Everyday Life

Context

● The British Museum in London will display an ancient object called the Nebra Sky

Disc.

○ It will be showcased as part of an exhibition on Stonehenge, which will

open in February 2022.

What is the Nebra Sky Disc?

● The Nebra Sky Disc is widely believed to be 3,600 years old, dating from the

Bronze Age.

● It is thought to be the world’s oldest concrete depiction of stars.

● The Nebra disc measures about 30cm in diameter and has a blue-green patina

emblazoned with gold symbols representing the Sun, Moon, stars, solstices and

other cosmic phenomena.

● Discovery: The bronze disc was unearthed in Germany in 1999 by treasure hunters

using a metal detector.

○ The disc was ritually buried along with two swords, axes, two spiral arm-

rings and one bronze chisel near Nebra in Germany.

● Association with the Unetice culture: It is thought to be one of the most important

archaeological discoveries of the 20th century and has been associated with the

Unetice culture that inhabited parts of Europe around 1600 BC.

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○ The Unetice culture comprised early Bronze Age communities in central

Europe including in Bohemia, Bavaria, southeastern Germany and western

Poland.

○ One of the distinguishing features of this culture was its use of tin-bronze

metallurgy.

○ Some of the metal artefacts made during this time by communities in the

Unetice culture include ogival and triangular daggers with metal hilts,

flanged axes, halberds, spiral arm-rings, solid bronze bracelets and varieties

of pins.

● In the past few years, however, the date of origin of the disc has been called into

question by some archaeologists.

● Value: The disc has a value of about $11 million and is thought by some to be one

part of a pair, with the other part still out there, waiting to be discovered

Image Courtesy: IE

Source: IE

Polity and Governance

Seer Water Supply Scheme

Syllabus: GS 2/Government Policies & Interventions

In News

● Recently, the Union commerce and industry minister inaugurated a 250mm seer

water supply scheme in Kashmir.

Major Inaugurations

● He inaugurated the tourist hut of Pahalgam Development Authority at Golf

Course Pahalgam.

● He also inaugurated the Forest Departments Deodar sapling plantation drive

being conducted under the banner of Green JK Drive.

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○ A total of 1 lakh saplings will be planted as part of the drive.

About Seer Water supply scheme

● The project will benefit around 10000 people and will be completed under the

ambit of Jal Jeevan Mission within three months.

Jal Jeevan Mission ● JJM envisages a supply of 55 litres of water per person per day to every rural

household through Functional Household Tap Connections (FHTC) by 2024. ● It is under the Ministry of Jal Shakti. ● It was launched in 2019. ● Funding Pattern:

○ The fund sharing pattern between the Centre and states is 90:10 for Himalayan and North-Eastern States, 50:50 for other states, and 100% for Union Territories.

● Aims: ○ The mission ensures the functionality of existing water supply systems

and water connections; water quality monitoring and testing as well as sustainable agriculture.

○ It also ensures conjunctive use of conserved water; drinking water source augmentation, drinking water supply system, greywater treatment and its reuse.

Source: PIB

Polity and Governance

Future Tech 2021

Syllabus: GS 2/Government Policies & Interventions

In News

● Recently, the Minister of State in the Ministry of Electronics & IT attended the

inaugural session of the International Conference and Exhibition on Digital

technologies - “Future Tech 2021”.

About Future Tech 2021

● It is organized by the Confederation of Indian Industry (CII).

● The event is scheduled from 19 – 27 October 2021.

● The event will revolve around 5 theme pillars: Strategy, Growth, Resilience,

Inclusiveness, Trust with a focused theme “ Driving technologies for building the

future, we all can trust”.

● The International conference would consist of digital interactions and virtual

exhibition and serve as an ideal platform for Indian industry and entrepreneurs to

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understand the nuances of technologies and identify the right approach and

technologies for their business as well as B2B partnerships.

● It will also highlight the initiatives taken by the Indian government towards

enhancing India’s competitiveness in the global economy and achieving self-

reliance by enhancing the use of emerging technologies.

Confederation of Indian Industry (CII) ● It is a non-government, not-for-profit, industry-led and industry-managed

organization, with over 9000 members from the private as well as public sectors. ● It aims to create and sustain an environment conducive to the development of

India. ● As India marches towards its 75th year of Independence in 2022, CII has chosen

the theme for 2021-22 as Building India for a New World: Competitiveness, Growth, Sustainability, Technology.

Source: PIB

Biodiversity and Environment

Earthshot Prize 2021

Syllabus: GS3/Conservation

In News

● Recently, two Indians among 15 finalists were selected for the first-ever Earthshot

Prize 2021.

○ India’s Vidyut Mohan’s technology that recycles agricultural waste to

create fuel was named among the winners of the coveted prize.

About

● Dubbed as the “Eco Oscars”, the Earthshot Prize is an award set up by Prince

William and the Royal Foundation, the charity founded by the Duke and Duchess

of Cambridge, and historian David Attenborough to honour five finalists between

2021 and 2030 for developing solutions to fight the climate crisis.

Key Highlights of Earth shot Prize

● Established:

○ 2021 was the first year when awards were handed out to finalists for their

contributions towards the five UN Sustainable Development Goals —

restoration and protection of nature, air cleanliness, ocean revival, waste-

free living and climate action.

● Objective:

○ Earthshot Prize hopes to encourage and support the development of

solutions for Earth’s environmental problems.

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● Prize:

○ Five individuals or organisations that have come up with impactful

solutions to problems plaguing the planet will be awarded one million

euros.

● Each year five winners will be selected, one for each of the UN SDG goal

categories, with a total of 50 million euros being awarded by 2030.

● The winners will be chosen from 15 finalists, three for each category, by the Earth

shot Prize Council.

○ The council comprises global spokespersons who are striving to bring

impactful action in various capabilities.

Source: IE

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