Recently, in a renewed push for special category status for their respective states, Bihar and Andhra Pradesh's Chief Ministers have intensified their demands.
What is Special Category Status?
Special Category Status is a classification granted to some States by the Centre to assist development, based on geographical and socio-economic disadvantages. The scheme was introduced in 1969 on the recommendation of the Fifth Finance Commission.
Five factors that are considered before granting SCS to a State:
Hilly and difficult terrain
Low population density and/or sizeable share of tribal population
Strategic location along international borders
Economic and infrastructural backwardness
Non-viable nature of State finances
In 1969, three States — Jammu & Kashmir, Assam and Nagaland — were granted the SCS. Subsequently, eight more States - Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand were given the SCS.
Benefits associated with the special category status
SCS States receive Centre-State funding from centrally sponsored schemes in the ratio of 90:10, which is more favourable than general category States.
Unspent money in a financial year does not lapse and is carried forward.
Significant concessions are provided to these states in excise and customs duties, income tax and corporate tax.
Reasons Behind Demand for Special Category Status
Poverty and Backwardness: States like Odisha, Bihar and Jharkhand etc are under the glitches of poverty, backwardness, illiteracy and unemployment. It has impacted the overall fiscal health of the states, which is why these states have been asking for special package to fund various welfare measures in these states.
Geographical factors: The lack of natural resources is a precursor to poverty or stagnation, weak governance, and poor economic performance.
Natural Disasters:Vulnerability to natural calamities such as cyclones, regular floods and severe droughts in several states have made the political parties of different States to ask for special package.
Bifurcation of the states: The political redrawing of States boundaries in states like Bihar, Madhya Pradesh and Andhra Pradesh led to the shifting of industries and created a dearth of employment and investment opportunities.
Deteriorating Financial Health: Several states like Kerala, Manipur, Punjab, Rajasthan, and West Bengal have record number of debts which is restricting the states governments to spend on development & welfare measures.
Key concerns
Politicisation of Package: Special packages are purely discretionary. They may be need-based, but the need is not the proximate reason for granting a special package. More often than not, they are the result of the bargaining power of some State-level political parties that can tilt the scales of parliamentary majority.
Challenge to Fiscal Federalism: The outcome of an election can determine the fiscal distribution of national resources to a State or States goes against the principle of fiscal federalism.
Alleged Bias: In the recent past, some States raised concerns about their share in the divisible pool of Union taxes facing a decline. Some states have questioned the delay in the disbursement of their share in the divisible pool.
Challenge to Cooperative Federalism: Accepting demands for special packages to some state while ignoring the deserving states, would weaken the foundations of cooperative federalism.
Burden on central finances: Providing supplementary financial resources to special category states places a substantial drain on the central government's finances.
Dependency Culture: An inevitable effect of this policy may increase the level of dependency of states on the center, and it would not let the states to make economic progress.
Way forward
Strengthening Transparency: If a healthy federal structure is to be nurtured, the fiscal boundaries, principles of assignment of taxes, and the basis for grants have to be transparent and objective.
Strengthening Finance Commission’s Role: The allocation has to be through the mechanism of the Finance Commission. The Commission is constituted by the President every five years or earlier to make recommendations regarding the distribution of a share of taxes collected by the Union to the States.
Consistent Audit & Valuation: Periodic audits are important because it will help to identify areas where progress is needed and it can also prevent fraud and other financial irregularities.
National Security Council
Why in news?
Recently, the National Security Advisor (NSA) has appointed two new deputy NSAs in the National Security Council Secretariat (NSCS) team.
About National Security Council
The National Security Council of India is an executive government agency tasked with advising the Prime Minister's Office on matters of national security and strategic interest.
It was established by the former Prime Minister of India Atal Bihari Vajpayee on 19 November 1998, with Brajesh Mishra as the first National Security Advisor.
The National Security Council is headed by the Prime Minister of India. The NSA acts as the secretary of the National Security Council and also as the primary advisor to the prime minister.
Besides the NSA, other members of the NSC include the Deputy National Security Advisors, Ministers of Defence, External Affairs, Home Affairs and Finance of the Government of India, and the Vice Chairman of the NITI Aayog.
The National Security Council is the apex body of the three-tiered structure of the national security management system in India which exercises its power through National Security Council Secretariat having four verticals namely
Strategic Planning
Internal Affairs
Intelligence and Technology
Military vertical
The three tiers of the National Security Council are the Strategic Policy Group, the National Security Advisory Board and a secretariat from the Joint Intelligence Committee
Shanghai Cooperation Organisation
Why in news?
Recently, the 24th Summit of Heads of State of the Shanghai Cooperation Organization (SCO) concluded in Kazakhstan.
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The 24th Summit of Heads of State of the Shanghai Cooperation Organization (SCO) concluded with the adoption of the Astana Declaration.
The declaration stressed the group’s commitment to building a more representative, democratic, equitable, and multipolar world order.
The declaration stressed the importance of enhancing the SCO's role in global peace, security and stability, and advocated a new just, democratic, political, and economic international order.
Belarus joined as the 10th member of the Shanghai Cooperation Organisation and China assumed the group’s rotating presidency.
The SCO now has nine members, including India, Iran, and Pakistan, in addition to the founding members.
There are three observer states – Afghanistan, Belarus, and Mongolia, and 14 dialogue partners, including Azerbaijan, Armenia, Qatar, the United Arab Emirates, Saudi Arabia, and Türkiye.
About SCO
The Shanghai Cooperation Organization is a permanent intergovernmental international organization.
It was established in June2001 by Kazakhstan, China, Kyrgyzstan, the Russian Federation, Tajikistan and Uzbekistan. Its predecessor was the mechanism of the Shanghai Five.
The supreme decision-making body of the SCO is the Council of Heads of States (CHS). It meets once a year and decides upon all the important issues of the Organization.
The Organization has 2 standing bodies, the Secretariat in Beijing and the Executive Committee of the Regional Anti-Terrorist Structure (RATS) in Tashkent.
The official languages of the SCO are Russian and Chinese.
The goals of the SCO are:
to strengthen mutual trust, friendship and good-neighbourliness between the Member States
to encourage the effective cooperation between the Member States in such spheres as politics, trade, economy, science and technology, culture, education, energy, transport, tourism, environmental protection, etc;
to jointly ensure and maintain peace, security and stability in the region; and
to promote a new democratic, fair and rational international political and economic international order.
Producer Price Index
Why in news?
The Department for Promotion of Industry and Internal Trade (DPIIT) is close to finalising a model to launch a Producer Price Index (PPI) in India that may eventually replace the Wholesale Price Index (WPI).
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PPI measures wholesale prices from the point of view of producers of goods and services by tracking prices at different stages of production.
It has replaced WPI in most countries as it is conceptually in line with the internationally agreed System of National Accounts (SNA) to compile measures of economic activity.
According to a report submitted in 2017 by a working group on PPI, under the commerce and industry ministry and headed by economist B N Golder recommended the replacing WPI with the Producer Price Index.
Idea behind replacing the Wholesale Price Index (WPI):
WPI has an inbuilt bias due to double counting of same product
It doesn’t include exports and imports
It excludes the service sector, which covers about 55% of GDP
PPI is conceptually in line with international standards
A better deflator for calculating real GDP than WPI
Key issues:
The government has been trying to determine the methodology for constructing a PPI in the Indian context for over two decades.
The biggest issue will be to identify which services to include. What sort of services will serve as the correct representative of the sector?
There is also the issue of assigning weightings to the chosen goods and services. These are bound to take time.
Also, the periodicity of price collection, whether monthly or weekly, has to be determined.
Farmer Producer Organisations
Why in news?
The Union government is developing a new national policy for farmer producer organisations.
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The policy seeks to provide various supports such as cheaper institutional loans and a three-tier system to benefit millions of farmers.
To facilitate lending to FPOs, the draft policy proposes creating a special category within primary sector lending norms for banks.
The draft policy seeks to establish around 50,000 FPOs to benefit 2.5 crore farmers over the next five years.
The policy also focuses on enhancing financial inclusion and digital integration for FPOs.
It proposes the development of a dedicated digital platform that will provide FPOs with access to financial services, including credit, insurance, and payment solutions.
The policy emphasises the need for professional management and proposes a scheme to incentivise the hiring of qualified CEOs and managers.
It also encourages the establishment of “deemed mandis” operated by FPOs.
These marketplaces would function similarly to traditional mandis but with additional benefits like quality control and farmer training.
To enhance the governance of FPOs, the draft policy suggests implementing robust monitoring and evaluation mechanisms.
These mechanisms aim to ensure transparency and accountability in FPO operations.
About Farmer Producer Organisations
FPOs are groups of farmers who unite to enhance their bargaining power and access to resources.
They are registered as legal entities under Companies Act 2013 with a minimum number of 300 farmers in plain areas and 100 farmers in hilly and North East Region.
By acting collectively, FPOs can negotiate better prices for their produce and connect directly to larger markets, bypassing middlemen and reducing unnecessary costs.
These organisations also pool resources for bulk purchases of seeds, fertilisers, and other agricultural inputs, often at lower prices due to their combined buying power.
The government actively promotes the formation of FPOs through various schemes and policies, recognising them as a key driver for improving the lives and livelihoods of farmers in India.
Securities Appellate Tribunal
Why in news?
Recently, the Chief Justice of India said that more Securities Appellate Tribunal (SAT) are required in view of rapid growth in market and ‘increased volume of financial transactions.
About Securities Appellate Tribunal
SAT is a statutory body established under the provisions of Section 15K of the SEBI Act, 1992.
SAT consists of a Presiding Officer and Two other members. The Presiding officer of SAT shall be appointed by the Central Government in consultation with the Chief Justice of India or his nominee.
It hears and disposes of appeals against the orders passed by the SEBI, Pension Fund Regulatory and Development Authority (PFRDA) and the Insurance Regulatory Development Authority of India (IRDAI).
It has the same powers as vested in a civil court. Further, if any person feels aggrieved by SAT’s decision or order can appeal to the Supreme Court.
Exchange Traded Fund
Why in news?
Recently, SEBI has amended its regulations to allow equity-oriented Exchange Traded Funds (ETFs) and index funds to invest more in the listed securities of their sponsors’ group companies.
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The amended mutual fund rules create a more level playing field for asset management companies (AMCs).
It aims to streamline norms and ensure fair competition among all AMCs. The move is expected to benefit those asset managers whose sponsor group companies have a significant presence in major market indices.
The new regulation permits equity-oriented ETFs and index funds to invest in listed securities of sponsor group companies in line with their weightage in the underlying index, subject to an overall cap of 35 per cent of net assets.
Previously, mutual fund schemes were not permitted to invest more than 25 per cent of their net asset value (NAV) in the group companies of their sponsor.
About Exchange Traded Fund
An exchange-traded fund (ETF) is a pooled investment security that can be bought and sold like an individual stock.
ETFs can be structured to track anything from the price of a commodity to a large and diverse collection of securities.
Global Planetary Defense Efforts
Why in news?
ISRO is keen to be part of global planetary defence efforts ahead of Earth’s 2029 close encounter with asteroid Apophis.
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ISRO is looking at working in some capacity to study the asteroid Apophis when it is 32,000 km away from Earth in 2029 in order to prepare for planetary defense efforts to prevent the asteroid from crashing onto Earth.
Planetary defense is the effort to monitor and protect Earth from asteroids, comets and other objects in space.
According to NASA, Earth's gravity attracts more than a hundred tons (more than 90 metric tons) of small objects and dust from space daily.
The International Year of Planetary Defense 2029 (IYPD2029) will be a global raising awareness opportunity of protecting our planet Earth against possible hazards from Space, such as asteroids.
ISRO wants to be involved in putting an instrument on the JAXA (Japan Aerospace Exploration Agency), ESA (European Space Agency), and NASA (National Aeronautics and Space Administration) joint Apophis asteroid mission.
NASA’s Double Asteroid Redirection Test (DART) showed that a spacecraft’s kinetic impact with its target asteroid, Dimorphous, had successfully altered the orbit of the asteroid. This marks humanity’s first time purposely changing the motion of a celestial object and the first full-scale demonstration of asteroid deflection technology.
Asteroid 99942 Apophis is a near-Earth object, it was discovered in 2004, Apophis was identified as one of the most hazardous asteroids that could impact Earth.
India’s Future in Planetary Defence
As a major spacefaring nation with the capability to carry out complex missions, India has the potential to collaborate in the worldwide planetary defence programme.
India’s readiness to tackle more ambitious missions, including potential asteroid explorations and expertise in precise spacecraft navigation and capture, would be invaluable in future asteroid-related endeavors.
However, India’s conspicuous absence from key international bodies such as the International Asteroid Warning Network (IAWN) and the Space Mission Planning Advisory Group (SMPAG) is concerning.
While nations like China, the US, and even Pakistan are active members, India’s lack of participation hinders its ability to assess threats, respond aptly, and engage in disaster mitigation.
National Green Hydrogen Mission
Why in news?
Recently, the Government of India issues Scheme Guidelines for funding of testing facilities, infrastructure, and institutional support under the National Green Hydrogen Mission
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The scheme will support identification of the gaps in the existing testing facilities for components, technologies, and processes in the value chain of Green Hydrogen & its derivatives.
The Scheme will support creation of new testing facilities and upgradation of existing Testing Facilities to ensure safe and secure operations.
The scheme encompasses the development of robust quality and performance testing facilities to ensure quality, sustainability, and safety in GH2 production and trade.
The National Institute of Solar Energy (NISE) will be the Scheme Implementation agency (SIA).
About National Green Hydrogen Mission
The mission aims to make India a Global Hub for production, utilization and export of Green Hydrogen and its derivatives.
Hydrogen can be utilized for long-duration storage of renewable energy, replacement of fossil fuels in industry, clean transportation, and potentially also for decentralized power generation, aviation, and marine transport.
Objectives
Making India a leading producer and supplier of Green Hydrogen in the world
Creation of export opportunities for Green Hydrogen and its derivatives
Reduction in dependence on imported fossil fuels and feedstock
Development of indigenous manufacturing capabilities
Attracting investment and business opportunities for the industry
Creating opportunities for employment and economic development
Supporting R&D projects
Projected outcomes: The mission outcomes projected by 2030 are:
Development of green hydrogen production capacity of at least 5 MMT (Million Metric Tonne) per annum with an associated renewable energy capacity addition of about 125 GW in the country
Creation of over Six lakh jobs
Cumulative reduction in fossil fuel imports over Rs. One lakh crore
Abatement of nearly 50 MMT of annual greenhouse gas emissions
Additional Information
Types of hydrogen-based extractions
Depending on the nature of the method of its extraction, hydrogen is categorised into three categories, namely, Grey, Blue and Green.
Grey Hydrogen: It is produced via coal or lignite gasification (black or brown), or via a process called steam methane reformation (SMR) of natural gas or methane (grey). These tend to be mostly carbon-intensive processes.
Blue Hydrogen: It is produced via natural gas or coal gasification combined with carbon capture storage (CCS) or carbon capture use (CCU) technologies to reduce carbon emissions.
Green Hydrogen: It is produced using electrolysis of water with electricity generated by renewable energy. The carbon intensity ultimately depends on the carbon neutrality of the source of electricity (i.e., the more renewable energy there is in the electricity fuel mix, the "greener" the hydrogen produced).
Hologram Technology
Why in news?
Recently, Japan issued its first new banknotes with 3D hologram technology to fight counterfeiting.
About Hologram Technology
Hologram technology is a three-dimensional projection which can be seen without using any special equipment such as cameras or glasses.
The image can be viewed from any angle, so as the user walks around the display the object will appear to move and shift realistically.
Applications of Hologram Technology:
It is used in the medical industry, data storage, military, entertainment and gaming and education.
Brain-Eating Amoeba
Why in news?
Recently, in Kerala there have been four cases of the rare fatal primary amoebic meningoencephalitis (PAM) cases.
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Primary amoebic meningoencephalitis or PAM is caused by Naegleria fowleri, an amoeba that thrives in warm freshwater lakes, ponds and rivers.
It can also survive in poorly maintained swimming pools in rare cases.
As it can infect the brain and destroy the tissues there, this one-celled organism is also called ‘brain-eating amoeba’. These infections, though rare, are fatal and 97% of the patients don’t survive.
The infection happens when people go for a swim in lakes, ponds or rivers, during the summer.
Experts say that it could occur if the atmospheric temperature is high and water levels are low. The amoeba enters the body through the nose and reaches the brain. It destroys brain tissues and causes their swelling.
The infection does not spread from person to person. Swallowing water containing the amoeba does not lead to it either.
The main symptoms of the disease are fever, headache, vomiting, and seizures.
The disease, however, can progress rapidly. Stiff neck, confusion, lack of attention to people and surroundings, loss of balance, and hallucinations are the later symptoms.
It usually leads to coma and death after five days, says the CDC. Most people die within one to 18 days.
At present, it is treated with a combination of drugs, including amphotericin B, azithromycin, fluconazole, rifampin, miltefosine, and dexamethasone.
NIRMAN Scheme
Why in news?
Recently, the Union Minister for Coal and Mines launched a portal “Noble Initiative for Rewarding Mains Aspirants of National Civil Services Examination (NIRMAN)”.
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It is a unique CSR scheme by Coal India limited in alignment with the vision “Mission Karmayogi” of Prime Minister.
The scheme is aimed towards providing support of Rs 1,00,000/- (Rupees One Lakh) to the Preliminary examination qualified candidates with annual family income less than 8 lakhs and belonging to Scheduled Caste, Scheduled Tribe, female or third gender; who are permanent residents of any of the 39 operational districts of Coal India limited.
The entire application process is through a dedicated portal for ensuring full transparency and seamless screening of the applications.
Tibetan Plateau
Why in news?
Recently, a fossil of extinct human species Denisovan was identified in the Tibetan plateau.
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An analysis of 2,500 mammalian bones found in the Baishya Karst Cave on the Tibetan Plateau has shed new light on how the Denisovans subsisted in caves 3,280 metres above sea level for 1,00,000 years.
Denisovans coexisted with modern humans and the Neanderthals, our closest extinct relatives, for several thousand years in Eurasia. Denisovans were the smallest of the three related species, standing 3 to 4 feet tall.
Homo sapiens or modern humans first appeared in Africa 3,00,000 years ago, and encountered and interbred with the other two species after migrating to Asia and Europe.
The Neanderthals lived in Europe and Western Asia and the Denisovans in Eurasia.
About Tibetan Plateau
Tibetan plateau is the world's highest and largest plateau above sea level.
It covers most of the Tibet Autonomous Region, China, Nepal, Bhutan and India.
The Tibetan Plateau is surrounded by the massive mountain ranges of high-mountain Asia. The plateau is bordered to the south by the inner Himalayan range, to the north by the Kunlun Mountains.
The Tibetan Plateau contains the headwaters of the drainage basins of most of the streams and rivers in surrounding regions. This includes the three longest rivers in Asia (the Yellow, Yangtze, and Mekong).
The Tibetan Plateau acts as a barrier and a heat source significantly influences the dynamics of the Indian monsoons.
Kalamkari Art Forms
Why in news?
Kalamkari Art Forms is now struggling for survival in contemporary times due to escalating raw material costs, diminishing wages and erosion of artisan base.
About Kalamkari Art Forms
Kalamkari refers to a specific, intricate style of hand-painting onto cloth. Designers are awakening to the possibilities of this organic handcrafted technique.
It is a type of hand-painted cotton textile produced in the Indian state of Andhra Pradesh. Only natural dyes are used in Kalamkari, which involves twenty-three steps.
There are two distinctive styles of Kalamkari art in India
Srikalahasti style:
Srikalahasti’s style involves using a traditional pen with a brush to draw the designs.
The Srikalahasti artisans restricted themselves to making a hand-painted cloth that was primarily used in temples, to either hang it behind the deity or on a chariot.
Machilipatnam style:
Machilipatnam style of Kalamkari work which involves vegetable dyed block-painting of a fabric.
It is produced at the town of Machilipatnam in Krishna district of the Indian state of Andhra Pradesh.
It was registered as one of the geographical indications from Andhra Pradesh under handicraft goods.
Like many traditional Indian crafts, Kalamkari uses only natural materials.
These raw materials include cotton cloth, dried unripe fruit and milk to make the ‘mordant,’ charcoal sticks, black kasimi liquid, alum solution and natural pigments in red, indigo and yellow.
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