CURRENT AFFAIRS - 06/12/2023

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CURRENT AFFAIRS – 06/12/2023

CURRENT AFFAIRS – 06/12/2023

Over half of FY23 bank loan write-offs linked to large industries, services sector

(General Studies- Paper III)

Source : The Indian Express

In the financial year 2022-23 (FY23), Scheduled Commercial Banks in India wrote off a total of Rs 2.09 lakh crore in loans.

Of this amount, 52.3% (approximately Rs 1.09 lakh crore) were associated with large industries and the services sector.

Key Highlights

Comparison with Previous Years:
- In the preceding year, FY22, the total written-off loans were Rs 1.75 lakh crore, with 39.8% linked to large industries and services.
- Over the last five years, the share of large industries and services in written-off loans peaked at 62.3% in FY20-21, amounting to Rs 2.03 lakh crore.
Impact on NPA Ratio:
- The massive loan write-offs contributed to reducing the Gross Non-Performing Assets (GNPA) to a 10-year low of 3.9% of advances by March 2023.
- Gross NPAs fell from Rs 10.21 lakh crore in FY2018 to Rs 5.55 lakh crore by March 2023, primarily due to these write-offs.
- Since FY2012-13, banks have written off a significant Rs 15,31,453 crore, according to RBI data.
- However, it’s crucial to note that these written-off loans remain on the books as unrecovered loans.
- Banks recovered only Rs 1.09 lakh crore from Rs 5.87 lakh crore in write-offs over the last three years, indicating a recovery rate of 18.60% during this period.
Overall NPA Scenario:
- If including write-offs, the total Non-Performing Asset (NPA) ratio would be 7.47% of advances, higher than the 3.9% reported by banks.
- The total defaulted loans, including write-offs but excluding recoveries, amount to Rs 10.32 lakh crore.
The write-offs have played a crucial role in helping banks manage and reduce their NPAs, bringing down the ratio to a 10-year low.
Despite write-offs, the recovery from these bad loans remains a challenge, with banks managing to recover only a fraction of the written-off amount.

What does ‘writing off bad loans’ mean?

Writing off bad loans refers to the accounting practice of removing a loan from a lender’s books as an asset because it is considered unlikely to be recovered.
When a borrower defaults on a loan—meaning they fail to make the required payments over an extended period—lenders may decide that the chances of recovering the outstanding amount are slim.
In such cases, the lender may choose to “write off” the bad loan.
It’s important to note that writing off a bad loan does not absolve the borrower of the obligation to repay the debt.
Lenders may still attempt to recover the outstanding amount through various means, such as selling the debt to a collection agency or pursuing legal action against the borrower.

Glaciers shrank 1 m a year in a decade: WMO

(General Studies- Paper III)

Source : TH

The recently released report from the World Meteorological Organisation highlights key developments in the global climate during the 2011-2020 decade.

Despite being the warmest on record, the decade saw a notable decrease in the number of deaths resulting from extreme weather events, attributed to advancements in early warning systems and improved disaster management.

Key Findings

Reduced Mortality Rates:
- The report notes a historic decline in the number of deaths caused by extreme events, marking the first decade since 1950 without a single short-term event resulting in 10,000 or more fatalities.
- Improved early warning systems, driven by enhanced forecasting and disaster management, contributed significantly to this positive trend.
Environmental Recovery:
- The decade witnessed the first visible signs of recovery in the depleted ozone hole.
- Glaciers worldwide experienced an average thinning of approximately 1 meter per year between 2011 and 2020.
- Notably, Greenland and Antarctica lost 38% more ice compared to the preceding decade (2001-2010).
- Specific Incidents:
  - Mention of the 2021 Uttarakhand rock avalanche triggered by a breach in the Nanda Devi glacier, emphasizing the continued occurrence of climate-related incidents.
- Climate Change Impact:
  - Human-induced climate change is identified as a significant contributor to increased risks from extreme heat events.
  - Heatwaves emerged as the primary cause of human casualties, while tropical cyclones resulted in the most substantial economic damage.
- Public and private climate finance nearly doubled during the 2011-2020 period, showcasing a growing global commitment to addressing climate issues.
- Despite financial growth, the report underscores the need for a sevenfold increase in climate finance by the end of the next decade to achieve critical climate objectives.
- This includes preventing global temperatures from rising more than 1.5 degrees Celsius by the end of the century.

About World Meteorological Organisation

The World Meteorological Organization (WMO) is a specialized agency of the United Nations responsible for promoting international cooperation in meteorology, climatology, hydrology, and related fields.

The WMO was established on March 23, 1950, and became a specialized agency of the United Nations in 1951.
It originated from the International Meteorological Organization (IMO), which was founded in 1873.
The organization’s headquarters are located in Geneva, Switzerland.
The WMO has a membership of 191 Member States and Territories.
The WMO is actively involved in global efforts to address climate change.
It collaborates with other UN agencies and organizations to support initiatives such as the Intergovernmental Panel on Climate Change (IPCC).

Increase threshold income for EWS admissions in schools to ₹5 lakh: HC

(General Studies- Paper II)

Source : TH

The Delhi High Court issued a directive, instructing the Delhi government to raise the income threshold for eligibility under the Economically Weaker Sections (EWS) category in private schools.

The threshold is to be increased from the current ₹1 lakh per annum to ₹5 lakh.
The court emphasized that the existing threshold did not accurately represent the economic challenges faced by families in contemporary times, particularly in a metropolitan city like Delhi.
The order will remain in effect until the Delhi government revises the income slab to align with the living standards of the intended beneficiaries.

Key Highlights

Rationale for Increase:
- The court highlighted the discrepancy between the current ₹1 lakh threshold and the minimum wage of an unskilled laborer in Delhi, which is ₹17,494 per month.
- The judgment deemed it unrealistic to assume that a child’s total parental income, seeking admission under the EWS category in a metropolitan city, would be below ₹1 lakh annually.
- A comparative analysis revealed that Delhi had the lowest requisite income criteria among states and Union Territories, setting it apart with an amount of ₹8 lakh per annum being the norm in most other regions.
Elimination of Self-Declaration Mechanism:
- The court directed the Delhi government’s Directorate of Education to immediately eliminate the self-declaration mechanism for income.
- Instead, a standard operating procedure (SOP) for income verification and regular monitoring of eligibility criteria is to be established.
- The court expressed concerns about the potential for a significant number of self-declarations being false.
Background of the Case:
- The court’s decision stemmed from a case involving a father who had submitted a fake income certificate to secure admission for his child in the Sanskriti School under the EWS quota.
- The child had been attending the school as an EWS category candidate until a controversy arose in 2018.
- Despite the father’s misdeeds, the court allowed the child to continue studying as a general category student but imposed a ₹10 lakh cost on the father for securing illegal admission.
Implications for Education Policies:
- The ruling impacts the reservation policies under the Right to Education Act, which allocates 25% of seats in private schools for candidates from the EWS category.
- The court’s emphasis on aligning income thresholds with contemporary economic realities may influence similar considerations in education policies across states and Union Territories.

What is Economically Weaker Sections (EWS) category?

The economically weaker section (EWS) is the section of the society in India that belongs to the un-reserved category and has an annual family income of less than 8 lakh rupees.
Encompasses individuals not belonging to Scheduled Tribes (ST), Scheduled Castes (SC), or Other Backward Classes (OBC), who traditionally benefit from reservation policies.
They can avail a 10% reservation if they satisfy the criteria defining the economically weaker section.
The Indian government introduced a 10% reservation for the economically weaker section.

Global Stocktake draft calls for phasing out fossil fuels

(General Studies- Paper III)

Source : TH

A notable development at the U.N.’s COP 28 climate summit involves a draft document, the Global Stocktake (GST), which explicitly emphasizes the necessity for a global phase-out of all fossil fuels.

Key Highlights

The summit’s location in the United Arab Emirates, a major oil-producing state, and the leadership’s ties to the oil industry have reportedly influenced the language in the GST, signaling a departure from previous discussions.
Traditionally, climate talks focused on reducing dependence on coal due to its widespread use and significant heat-trapping potential.
However, this draft reflects a broader stance, encompassing oil, gas, and coal.
Past negotiations faced challenges, particularly due to the economic importance of coal in countries like India, China, and the United States.
- Demands for an end to all fossil fuels or none led to stalemates.
With scientific consensus emphasizing the urgency of substantial emissions reductions to limit global temperature rise below 1.5°C, the draft recognizes fossil fuels as responsible for 80% of emissions, making their mention significant.
Global Stocktake (GST) Purpose:
- The GST, the first of its kind since 2015, aims to assess the implementation of the Paris Agreement, evaluate progress toward temperature goals, and guide countries in updating commitments to reduce greenhouse gas emissions.
- The GST is just one part of the broader negotiation process at COP 28.
- Separate drafts on finance and adaptation are anticipated, with intensive discussions expected to continue until a final agreed declaration or agreement takes shape.
Energy Efficiency Pledge:
- The Global Stocktake (GST) draft at COP 28 includes a clause calling for a tripling of global renewable energy capacity by 2030 (to 11,000 GW) and doubling the average annual rate of energy-efficiency improvement (to 4.1%) compared to the 2022 level.
- The energy efficiency pledge was first articulated during the G-20 leaders summit in Delhi, though it did not initially include the directive to improve energy efficiency.
India’s Stance on Energy Efficiency Pledge:
- In Dubai, India did not sign the energy efficiency pledge along with 118 other countries, reportedly due to concerns about a caveat requiring the abandonment of coal use.
The GST draft emphasizes the importance of transitioning to sustainable lifestyles and consumption patterns to address climate change, aligning with Prime Minister Narendra Modi’s ‘Mission Life’ movement.
Points of contention include the mention of phasing out all fossil fuels, ending coal use, and phasing out inefficient fossil-fuel subsidies.
Critiques of the Draft:
- Independent experts find the draft disappointing, lacking a clear roadmap for implementing the GST.
- Concerns include the text being too large, vague, and lacking explicit language on how countries should report progress and goals.

Honest reckoning

(General Studies- Paper III)

Source : TH

The global target to limit the increase in average temperatures to 1.5°C, established to address climate change since pre-industrial times, is now a crucial focus at the climate summit in Dubai.

Current global commitments to reduce emissions are deemed insufficient to cap the temperature rise at half a degree.

Key Highlights

To achieve the 1.5°C goal, the world requires three times more renewable energy capacity by 2030, totaling at least 11,000 GW.
The New Delhi Leaders’ Declaration at the G-20 summit emphasized the need to triple renewable energy capacity and has garnered support from 118 countries.
India and China’s Abstention:
- Despite India positioning itself as a champion for renewable energy, it, along with China, has abstained from endorsing the tripling pledge.
- India, a major coal user, is hesitant to commit to a phase-down of unabated coal power, citing the need to balance energy needs and its 2030 renewable energy targets.
Challenge of Coal Dependence:
- Coal-fired plants contribute nearly 70% of India’s greenhouse gas emissions, posing a challenge in aligning with global calls to abandon unabated coal power.
- Developed countries, including the U.S., commit to forsaking coal, but the active transition from fossil fuels to renewable energy remains a challenge globally.

What’s the status of the UN treaty to end plastic pollution?

(General Studies- Paper III)

Source : TH

The Intergovernmental Negotiating Committee (INC), operating under the United Nations Environment Programme, convened in Nairobi from November 13-19 for its third round of negotiations with the goal of developing a global, legally binding instrument to combat plastic pollution by 2025.

Key Highlights

Objective and Mandate:
- Under UNEA Resolution 5/14, the INC is tasked with delivering a comprehensive global plastics treaty.
- The objective is to negotiate and adopt a mandate for developing the first draft of the treaty.
- INC-3 presented a crucial opportunity for member states to assess the ‘zero draft,’ which outlines core obligations and control measures.
- The outcomes were expected to determine the direction for the global plastics treaty.
Zero Draft Contents:
- The zero draft, prepared by the Secretariat, initially contained robust options for a binding treaty to end plastic pollution.
- It covered critical elements such as primary polymer production, chemicals of concern, problematic plastics, trade, and financial mechanisms.
Disagreements on Objective and Scope:
- During negotiations, member states diluted core obligations, especially those related to high-impact elements.
- Controversies arose over reducing primary polymer production, with some arguing it was beyond the mandate of UNEA Resolution 5/14.
- Disagreements emerged on the objective and scope of the treaty.
- While most countries agreed on ending plastic pollution and protecting human health and the environment, a group, including Saudi Arabia, Russia, China, Iran, and some Gulf Cooperation Council members, sought to include economic development considerations.
Industry Influence:
- Industry influence was evident, with a significant presence of lobbyists from the fossil fuels and chemicals sector.
- Some member states resisted discussions on reducing plastic production, emphasizing that UNEA Resolution 5/14 focuses on ending plastic pollution, not production.
Lifecycle Beginning and Exclusions:
- Disagreements arose on when the plastic lifecycle begins, with some advocating for it to start at product design rather than raw material sourcing.
- The exclusion of provisions related to eliminating compounds and polymers of concern also faced objections, with calls for a ‘null option.’
- Challenges included divergent views on reducing plastic production, exclusion of certain provisions crucial for ending plastic pollution, and disagreements on the treaty’s objective and scope.
Need for Concrete Measures:
- Despite disagreements, there is broad agreement that concrete measures at each stage of the plastic lifecycle are essential for effectively managing plastic pollution.
- The negotiations highlighted the complex landscape of international efforts to address plastic pollution, with differing perspectives on key issues shaping the path forward.
Financial Mechanism in the Treaty:
- The inclusion of a financial mechanism is a crucial aspect of the global plastics treaty to determine its implementation.
- Divergence among member states emerged regarding provisions like imposing a plastic-pollution fee on polymer producers and reducing financial flow into projects with a high carbon footprint.
Opposition to Financial Provisions:
- Like-minded countries opposed the inclusion of these provisions, leading to implications such as potential cuts in fossil-fuel subsidies and investments in environmentally unfavourable technologies like incineration and waste-to-energy plants.
Trade Restrictions:
- Another contentious issue was trade in polymers, chemicals, plastic products, and waste.
- The bloc argued against restrictions on trade, citing concerns about national freedom and sovereignty.
- The Centre for International Environmental Law (CIEL) countered the bloc’s stance, asserting that World Trade Organisation (WTO) rules allow for trade restrictions when necessary to protect human, animal, or plant life or health.
- The analysis suggests that international law doesn’t prohibit states from regulating or restricting trade in certain products and materials.
Focus on National Circumstances:
- Almost all provisions, excluding waste management, were watered down to accommodate “national circumstances and capabilities.”
- This approach raises concerns about the potential insistence on unsound waste management solutions.
The provision on waste management, while included, lacks a clear definition for “environmentally sound management,” leaving room for ambiguity.
Terms like “best available science” and “best available technology” continue to be used without precise definition.
Role of African Group and SIDS:
- The African group of countries and Small-Island Developing States (SIDS) played a crucial role, advocating for strong binding provisions in the treaty, particularly for high-impact elements.
- Their approach focused on human rights, public health, and championing the voices of waste-pickers and Indigenous peoples.
Challenges in Reaching Consensus:
- A closed-door meeting discussing the synthesis report and potential topics for intersessional work failed to reach a consensus.
- Consequently, no intersessional work will occur between INC-3 and INC-4, posing a setback for progress on definitions, targets, and timelines.
The negotiations underscored the challenges in navigating divergent interests and achieving consensus in addressing a global environmental concern.

About Intergovernmental Negotiating Committee (INC)

The Intergovernmental Negotiating Committee (INC) refers to a committee established to negotiate and develop an international legally binding instrument aimed at addressing plastic pollution worldwide.
The committee operates under the umbrella of the UNEP and is tasked with the specific goal of delivering a comprehensive global plastics treaty by the year 2025, as outlined in UNEA Resolution 5/14.
The committee conducts rounds of negotiations to discuss and refine the draft text of the international treaty.
These rounds are labelled as INC-2, INC-3, and so forth, with each round focusing on specific aspects of the treaty and the negotiation process.

About United Nations Environment Programme

The United Nations Environment Programme (UNEP) is a specialized agency of the United Nations established to address global environmental issues and promote sustainable development.
It was created in 1972 following the United Nations Conference on the Human Environment held in Stockholm.
UNEP was established on December 15, 1972, by the United Nations General Assembly.
UNEP’s headquarters is located in Nairobi, Kenya.
The agency publishes reports such as the Global Environment Outlook (GEO) series, which provides comprehensive assessments of environmental trends and issues.
UNEP plays a key role in supporting and facilitating the implementation of global environmental agreements and conventions, including the Convention on Biological Diversity (CBD), the Montreal Protocol on Substances that Deplete the Ozone Layer, and the United Nations Framework Convention on Climate Change (UNFCCC).

How does GPS work?

(General Studies- Paper III)

Source : TH

The Global Positioning System (GPS) has revolutionized various aspects of daily life, impacting both civilians and the military.

Initiated by the U.S. Department of Defense in 1973, the GPS program has evolved into a crucial technology with far-reaching implications.

Key Highlights

GPS Components:
- Space Segment:
  - The GPS satellite constellation comprises 24 satellites orbiting the Earth in six orbits.
  - Satellites are positioned 20,200 km above the Earth, with each orbit containing four satellites.
  - This configuration ensures that a minimum of four satellites is visible to anyone on Earth at any given time.
- Control Segment:
  - The control segment involves a global network of ground-based control stations and antennae.
  - Located at Schriever Air Force Base (Colorado) and Vandenberg Air Force Base (California), the master control stations manage satellite performance.
  - Ground antennae are strategically positioned in various locations worldwide, including Florida, Ascension Island, Diego Garcia, and others.
  - Monitoring and tracking stations, spread across the U.S. and internationally, ensure the satellites meet the Standard Positioning Service (SPS) performance standard.
- User Segment:
  - The user segment encompasses the diverse applications of GPS across various sectors.
  - Major sectors include agriculture, construction, surveying, logistics, telecommunications, power transmission, search and rescue, air travel, meteorology, seismology, and military operations.
  - In 2021, approximately 6.5 billion Global Navigation Satellite System (GNSS) devices were installed globally, a number expected to reach 10 billion by 2031.
- Significance and Impact:
  - GPS has fundamentally altered our sense of place and expectations regarding location.
  - Its applications extend to precision scientific studies, urban planning, disaster risk estimation, and more.
  - The Standard Positioning Service (SPS) performance standard guides users and developers worldwide, ensuring consistent and reliable GPS services.
- How GPS Works:
  - Satellite Signals:
    - GPS satellites emit continuous radio signals containing information about their orbit, status, and emission time.
    - Signals are transmitted at L1 (1,575.42 MHz) and L2 (1,227.6 MHz) frequencies, encoded with code-division multiple access for signal separation.
    - Two encoding types exist:
      - coarse/acquisition mode for civilians and precise mode, encrypted for military use.
    - Receiver Calculation:
      - GPS receivers on devices calculate precise distance from satellites by measuring signal travel time.
      - Distance is determined using the speed of light, and triangulation with signals from at least four satellites provides accurate location in four dimensions.
    - Error Adjustments:
      - Adjustments are made to minimize errors, considering factors like gravitational potential affecting satellite clocks.
      - Special and general relativity principles are applied to account for clock discrepancies and relative velocities between satellites and receivers.
    - Satellite Timekeeping:
      - Accurate timekeeping is crucial for GPS functionality, with small clock offsets leading to significant errors.
      - Satellite clocks running 38 microseconds faster due to weaker gravitational potential require adjustment.
      - Satellites are equipped with atomic clocks, ensuring precise timekeeping.
      - Atomic clocks exploit the resonant frequency of electrons in atoms, maintaining uniform steps between energy levels.
      - Scientists fine-tune radiation sources to the resonant frequency, allowing accurate time measurement based on atomic transitions.
    - Synchronization and Precision:
      - Clocks in the GPS constellation are synchronized to within 10 nanoseconds of each other and referenced to ground-based clocks.
      - Atomic clocks prevent drift by continuously checking and adjusting the resonant frequency, maintaining accurate timekeeping.

Other GNSS Systems:
- According to the U.S. Space-Based Positioning, Navigation, and Timing Policy, the GPS system collaborates with other Global Navigation Satellite Systems (GNSS).
- Other GNSS systems are operated by Australia, China, the European Union, India, Japan, South Korea, Russia, and the U.K.
- Russia’s GLONASS, the E.U.’s Galileo, and China’s BeiDou systems are global in scope.
International Collaboration:
- Regular meetings between U.S. government officials and counterparts from other countries ensure compatibility between different GNSS technologies.
- The International Committee on GNSS, under the United Nations Office of Outer Space Affairs, fosters voluntary cooperation on civil satellite-based positioning, navigation, timing, and value-added services.
Indian Regional Navigation Satellite System (NavIC):
- Initiated in 2006, NavIC is India’s regional GNSS, later renamed Navigation with Indian Constellation.
- Comprises seven satellites, with three in geostationary orbits and four in geosynchronous orbits.
- Ground-based navigation is facilitated with a minimum of four satellites.
- Master control facilities are located in Hassan (Karnataka) and Bhopal (Madhya Pradesh).
- NavIC satellites use rubidium atomic clocks and transmit data in the L5 (1,176.45 MHz) and S (2,492.028 MHz) bands, with newer satellites also transmitting in the L1 band.
- Features a messaging interface for communication with control stations, enabling targeted warnings (e.g., for fishermen near international borders).
GPS-Aided Geo Augmented Navigation (GAGAN):
- Operated by the Indian Space Research Organisation (ISRO) and the Airports Authority of India.
- Primarily designed for safety-of-life civil aviation applications in the Indian airspace.
- Provides correction and integrity messages for GPS, enhancing navigation accuracy.