Current Affairs Reverse Engineering – CARE (02-08-2024)
| News at a Glance |
| Polity and Governance: Identifying the ‘creamy layer’: model of OBC reservation |
| Environment and Ecology: Scientists discover six new lineages of bent-toed geckos from the Northeast |
| Disaster Management: Bhopal Gas Tragedy and Toxic Waste disposal in Madhya Pradesh |
| Economy: India is the 2nd Largest Aluminium Producer in the World |
| Rising interest but only medium-term targets — why central banks are going slow on digital currencies |
Identifying the ‘creamy layer’: model of OBC reservation
Source: Indian Express
UPSC Syllabus Relevance: GS 2 Reservation issue and Judiciary
Context: Sub-classification of Scheduled Castes and Scheduled Tribes
Why in News
- The Supreme Court permitted sub-classification of Scheduled Castes and Scheduled Tribes for the purpose of granting separate quotas for those more backward within these communities.
Background
- The Supreme Court’s recent ruling allows for the sub-classification of Scheduled Castes (SCs) and Scheduled Tribes (STs) to grant separate quotas for the more backward within these communities.
- This decision opens the door for creating policies similar to those used for Other Backward Classes (OBCs) to exclude a “creamy layer” from benefiting from affirmative action.
- A committee under B P Sharma was tasked with reviewing these criteria but has made little progress.
Creamy Layer Definition:
- Creamy Layer: This term refers to the relatively more advanced or economically well-off members within a reserved category.
- The goal of excluding the creamy layer is to ensure that affirmative action benefits are directed toward those who are truly in need, rather than those who are already relatively privileged.
Historical Context:
- The concept of the creamy layer originated from the Indra Sawhney case in 1992.
- The Supreme Court ruled that while OBCs were entitled to reservations, those in the “creamy layer” within OBCs should be excluded from these benefits to prevent misuse and ensure that the benefits reach the most disadvantaged.
Criteria for Identification:
- The creamy layer among OBCs is identified based on:
- Constitutional or statutory positions.
- Group ‘A’ and Group ‘B’ officers.
- Certain professional roles.
- Income thresholds and property ownership.
- Originally set at an income threshold of ₹1 lakh per annum (revised to ₹8 lakh in 2017), these criteria are used to exclude more affluent individuals from OBC reservations.
Challenges:
- Diverse Needs: SCs and STs face different socio-economic challenges compared to OBCs, which makes setting criteria for the creamy layer more complex.
- Historic Injustices: The deeply entrenched social and economic disadvantages faced by SCs and STs add complexity to defining a creamy layer, as the impact of historical injustices must be considered.
Possible Criteria:
- Educational and Socio-economic Status: Justice Pankaj Mithal suggested that criteria might include the educational status of individuals, such as comparing students from prestigious urban institutions to those from rural areas.
- Income and Occupation: Similar to OBCs, criteria could involve income thresholds, property ownership, and occupation. However, these criteria would need to be tailored to reflect the unique socio-economic conditions of SCs and STs.
Formulating the Policy
- State-Level Decisions:
- The Supreme Court’s ruling allows states to decide whether to implement a creamy layer policy for SCs and STs and to determine the criteria for such a policy.
- States might need to set up committees similar to the Justice R N Prasad Committee for OBCs to develop and review these criteria.
- Policy Formulation Steps:
- Assessment: States would need to assess the socio-economic conditions and historical contexts specific to SCs and STs.
- Consultation: Engaging with experts, communities, and stakeholders to develop criteria that are fair and effective.
- Implementation: Creating administrative frameworks to apply and monitor the creamy layer criteria.
| CARE MCQ | UPSC PYQ |
Q1. The recent Supreme Court ruling on the sub-classification of Scheduled Castes (SCs) and Scheduled Tribes (STs) has implications for affirmative action policies in India. Which of the following statements regarding the creamy layer concept and its application to SCs and STs is/are correct?
Select the correct answer using the codes below: A. 1 and 3 only B. 2 and 4 only C. 1, 3, and 4 only D. 1, 2, and 3 only |
Q. Consider the following statements: (2023)
Statement-I: The Supreme Court of India has held in some judgments that the reservation policies made under Article 16(4) of the Constitution of India would be limited by Article 335 for the maintenance of efficiency of administration. Statement-II: Article 335 of the Constitution of India defines the term ‘efficiency of administration’. Which one of the following is correct in respect of the above statements? (a) Both Statement-I and Statement-II are correct and Statement- II is the correct explanation for Statement- I (b) Both Statement-I and Statement-II are correct and Statement- II is not the correct explanation for Statement-I. (c) Statement I is correct but Statement II is incorrect (d) Statement I is incorrect but Statement II is correct Answer: (c) |
| Answer 1- C
Explanation
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Bhopal Gas Tragedy and Toxic Waste disposal in Madhya Pradesh
Source: Indian Express
UPSC Relevance: GS 3- Disaster Management, Environment
Context: Bhopal Gas Tragedy
Why in News
- Nearly 40 years after Bhopal gas tragedy, the Madhya Pradesh state government will finally move ahead with its plan to incinerate 337 Metric Tons (MT) of toxic waste from the Union Carbide facility.
Bhopal Gas Tragedy: Overview
- The Bhopal Gas Tragedy occurred on the night of December 2, 1984, in Bhopal, Madhya Pradesh, India.
- Cause: A catastrophic leak of Methyl Isocyanate (MIC) gas from the Union Carbide India Limited (UCIL) pesticide plant. MIC is an extremely toxic compound used in pesticide production.
Immediate Impact:
- Casualties: The gas leak resulted in the deaths of approximately 5,000 people on the night of the disaster. Over the years, the death toll has been estimated to be higher due to long-term health effects.
- Health Effects: Survivors experienced severe health issues including respiratory problems, skin diseases, and reproductive health problems. Children born to those exposed to the gas also suffered from congenital disabilities.
Environmental Impact:
- Soil Contamination: The area surrounding the plant was heavily contaminated with toxic chemicals. Soil pollution required extensive remediation.
- Water Pollution: Water sources around the factory were tainted with chemicals, leading to the sealing of hand pumps and contamination of groundwater.
Early Actions and Legal Battles:
- PIL and Court Involvement: In 2004, activist Alok Pratap Singh filed a Public Interest Litigation (PIL) demanding accountability and remediation. This led to the formation of a task force chaired by the Secretary of the Department of Chemicals and Petrochemicals.
- Initial Plans: By 2005, the Central Pollution Control Board (CPCB) identified a high-quality incinerator at Bharuch Enviro-Infrastructure Limited (BEIL) in Gujarat for waste disposal. However, local protests in 2007 led to the abandonment of this plan.
Subsequent Attempts:
- Alternate Sites: The task force explored other facilities including Dungigal in Hyderabad and Taloja in Mumbai. In 2010, the Supreme Court approved the incineration of 346 metric tons (MT) of waste at the Pithampur TSDF (Treatment, Storage, and Disposal Facility) in Madhya Pradesh after a successful trial run.
- State Opposition: The Madhya Pradesh government challenged this decision in 2012, claiming that the facility was not technically adequate for such hazardous waste.
International and Domestic Complications:
- GIZ Proposal: In 2012, Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) proposed to dispose of the waste in Germany for Rs 24.56 crore. However, widespread opposition in Germany led to the withdrawal of this proposal.
- Further Delays: By 2015, a trial run at the Pithampur facility was conducted but faced opposition from local residents. This, along with disagreements between the central and state governments, led to a halt in progress.
Current Plan for Waste Disposal
- Recent Allocation: On March 4, 2024, the central government allocated Rs 126 crore for the waste disposal project, significantly more than the previously proposed Rs 24.56 crore.
- Process:
- Transportation: The toxic waste will be transported from the Union Carbide site to the Pithampur TSDF in packed drums. This phase will take 20 days.
- Handling: The waste will be moved to a blending shed where it will be mixed with reagents and then packed into smaller bags (3-9 kg).
- Incineration: Actual incineration is scheduled to begin on the 76th day, after ensuring all reports are reviewed and approvals are obtained from multiple departments to confirm that the process meets environmental and safety standards.
Timeline and Cost:
- Project Duration: The entire disposal process is expected to be completed in 180 days.
- Cost: The estimated cost of Rs 126 crore is about five times higher than the earlier GIZ proposal, reflecting the complexities and stringent safety measures involved.
Extent of Contamination
- 2010 Report: A report by BGTRR indicated contamination at nine sites within the Union Carbide premises, requiring remediation of 320,000 cubic meters of soil. Groundwater contamination was also present.
- 2021 NGT Report: This report directed the remediation of Solar Evaporation Ponds (SEPs) north of the factory. It found traces of heavy metals and exceeded limits of various physicochemical parameters in nearby water sources.
Risks and Environmental Considerations
- Testing and Compliance: The 2015 trial run showed no fugitive emissions from the incinerator and confirmed that ambient air quality around the facility met national standards, except for occasional specific pollutants.
- Monitoring: Continuous monitoring is planned to ensure that the incineration process adheres to safety and environmental standards, mitigating risks of air quality deterioration.
| CARE MCQ | UPSC PYQ |
Q2. Which of the following gases was leaked during the Bhopal Gas Tragedy in 1984?
Select the correct answer using the code below: A. 1 only B. 2 and 3 only C. 3 and 4 only D. 1, 2, and 3 |
In India, why are some nuclear reactors kept under “IAEA safeguards” while others are not? (2020)
(a) Some use uranium and others use thorium Ans: (b) |
| Answer 2– A
Explanation –
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India is the 2nd Largest Aluminium Producer in the World
Source: PIB
https://pib.gov.in/PressReleasePage.aspx?PRID=2039988
UPSC Relevance: GS3- Economy
Context: 2nd Largest Aluminium Producer in the World
Why in News
- Production of key minerals in the country, such as iron ore and limestone, has continued to show robust growth in Q1 of FY 2024-25.
Robust Growth in Mineral Production
- Iron Ore and Limestone: In the first quarter (Q1) of FY 2024-25, production of iron ore and limestone has continued to grow strongly, following record levels in FY 2023-24.
- These minerals are crucial as they account for about 80% of the total mineral production by value under the Mineral Conservation and Development Rules (MCDR).
- Iron Ore: Production reached 275 million metric tons (MMT) in FY 2023-24.
- Limestone: Production was 450 MMT in FY 2023-24.
Production Trends in Q1 FY 2024-25:
- Iron Ore: The production increased from 72 MMT in Q1 FY 2023-24 to 79 MMT in Q1 FY 2024-25, reflecting a 9.7% growth. This suggests a healthy increase in iron ore production, likely driven by strong demand from the steel industry.
- Limestone: Production rose from 114 MMT in Q1 FY 2023-24 to 116 MMT in Q1 FY 2024-25, marking a 1.8% growth. This increment, though smaller compared to iron ore, still indicates positive growth in the cement sector, which relies heavily on limestone.
Aluminium Production:
- In the non-ferrous metal sector, primary aluminium production saw a modest increase of 1.2% in Q1 FY 2024-25, rising to 10.43 lakh tons (LT) from 10.28 LT in the same period last year.
- This growth underscores the continued demand for aluminium in sectors like automotive, construction, and energy.
- Manganese Ore Production: Manganese ore production jumped by 11% to 1.0 MMT in Q1 FY 2024-25 from 0.9 MMT in Q1 FY 2023-24. Manganese is essential for steel production, and this increase indicates a rise in steel manufacturing activities.
Economic Implications:
- Demand in User Industries: The increase in iron ore and limestone production points towards robust demand in key industries such as steel (iron ore) and cement (limestone). This reflects strong economic activity and growth in infrastructure and construction sectors.
- Sectoral Growth Indicators: The growth in aluminium production and the significant rise in manganese ore production further indicate expanding activities in sectors like energy, automotive, and machinery, which utilize these metals.
- India’s Global Position: India ranks as the 2nd largest producer of aluminium, 3rd largest producer of lime, and 4th largest producer of iron ore globally. These positions highlight India’s significant role in the global mineral supply chain.
Aluminium Industry
- Aluminium is the 2nd most important industry after the iron and steel industry.
- In the modern world the Aluminium is used in the production and distribution of electricity (being a good conductor of electricity), household utensils and electric appliances, manufacturing and aeroplanes, rail coaches, nuclear and defense accessories etc.
- The plant for obtaining Alumina from bauxite ore for aluminium plants is located near the cheap sources of energy i.e., electricity & hydel power supply.
- It is also the fastest-growing metal which has grown by nearly 20 times in the last sixty years (compared to 6 to 7 times for other metals).
- The Aluminium industry comprises two basic segments: upstream and downstream.
- The upstream sector produces primary Aluminium from raw materials via bauxite mining.
- The downstream sector comprises of processing of Aluminium into semi-finished Aluminium goods such as rods, bars, castings, forging, etc.
| CARE MCQ | UPSC PYQ |
Q3. Which of the following statements accurately describes the Aluminium industry?
Select the correct answer using the code below: A. 1 only B. 2 and 3 only C. 1 and 3 only D. 1, 2, and 3 |
Q5. Ilmenite and rutile, abundantly available in certain coastal tracts of India, are rich sources of which one of the following? (2023)
(a) Aluminium (b) Copper (c) Iron (d) Titanium Answer: Option d |
| Answer 3 A
Explanation
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Scientists discover six new lineages of bent-toed geckos from the Northeast
Source: Down To Earth
UPSC Syllabus Relevance: GS 3- Environment and Ecology
Context: Six new species of bent-toed geckos
Why in News
- Scientists from India and the United Kingdom have described six new species of bent-toed geckos from Northeast India.
Background
- Researchers from India and the United Kingdom have recently identified six new species of bent-toed geckos from Northeast India.
- This discovery highlights the rich, often hidden biodiversity of the region and underscores the importance of continued exploration and conservation efforts.
Species Locations
- Arunachal Pradesh: Namdapha bent-toed gecko: Found in the Namdapha Tiger Reserve and Kamlang Tiger Reserve, thriving in lowland evergreen forests.Siang valley bent-toed gecko: Discovered in the Siang river valley, a region known for its unique biodiversity.
- Nagaland: Kiphire bent-toed gecko: Located in regenerating jhum land. Barail Hill bent-toed gecko: Found in a reserved forest.
- Manipur: Manipur bent-toed gecko: Found near Lamdan Kabui village, on shrubs at a relatively low elevation.
- Mizoram: Ngengpui bent-toed gecko: Discovered in the Ngengpui Wildlife Sanctuary, situated in tropical semi-evergreen to moist evergreen forests.
Habitat and Behavior:
- These geckos are nocturnal and are commonly found along forest streams, rocks, and vegetation.
- They inhabit diverse environments, from tropical forests to semi-evergreen regions, and are often seen in protected areas like wildlife sanctuaries and tiger reserves.
Importance of the Discovery
- Biodiversity Insight: The discovery of these new species emphasizes the region’s hidden diversity. Northeast India is shown to be exceptionally rich in unique species, with each state now having its own endemic bent-toed gecko.
- Conservation Significance: The findings stress the value of exploring and protecting lesser-known and less prioritized areas such as abandoned jhum lands and reserved forests, which are crucial habitats for undocumented biodiversity. The new species were found in both well-known protected areas and less-studied regions, highlighting the importance of these diverse habitats in conserving wildlife.
- Scientific Impact: The identification of these new species adds to the approximately 30 species of bent-toed geckos already known in Northeast India, all of which are endemic to the region. It underscores the need for ongoing research and conservation efforts in areas with rich but poorly documented biodiversity.
| CARE MCQ | UPSC PYQ |
| Q4. The habitat of the newly discovered bent-toed geckos shows a diverse range of environments. Which of the following correctly pairs a gecko species with its habitat?
A. Namdapha bent-toed gecko – Tropical semi-evergreen forest B. Siang valley bent-toed gecko – Lowland evergreen forest C. Ngengpui bent-toed gecko – Semi-evergreen to moist evergreen forest D. Manipur bent-toed gecko – Reserved forest |
Q. Certain species of which one of the following organisms are well known as cultivators of fungi? (2022)
a. Ant b. Cockroach c. Crab d. Spider Ans: a |
| Answer 4 C
Explanation
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Central banks are going slow on digital currencies
Source: The Print
UPSC Syllabus Relevance: GS 3- Economy
Context: Digital currencies – Central Bank Digital Currency (CBDC).
Why in news
- Over the course of 2023, there has been a sharp uptick in the number of central banks exploring a Central Bank Digital Currency (CBDC).
Central Bank Digital Currency (CBDC)
- A CBDC is a legal tender issued by a central bank in digital form.
- It is the same as a fiat currency and is exchangeable one-to-one with the fiat currency.
- A fiat currency is a national currency that is not pegged to the price of a commodity such as gold or silver.
- The digital fiat currency or CBDC can be transacted using wallets backed by blockchain.
- Though the concept of CBDCs was directly inspired by Bitcoin, it is different from decentralised virtual currencies and crypto assets, which are not issued by the state and lack the ‘legal tender’ status.
- Objectives:
- The main objective is to mitigate the risks and trim costs in handling physical currency, costs of phasing out soiled notes, transportation, insurance and logistics.
- It will also wean people away from cryptocurrencies as a means for money transfer
Central Banks and CBDCs
- In 2023, a significant number of central banks, as indicated by the Bank for International Settlements (BIS), are engaged in exploring CBDCs.
- This exploration varies widely in scope and pace across different jurisdictions.
- The primary motivations behind these explorations include enhancing cross-border payments and addressing existing challenges like high costs, slow speeds, limited access, and insufficient transparency.
Types of CBDCs:
- Wholesale CBDCs: These are intended for transactions between financial institutions and aim to improve the efficiency of cross-border payments. Advanced economies show more interest in these, as they could resolve existing issues in international finance.
- Retail CBDCs: These are designed for public use and can impact monetary policy and the role of traditional banks. Central banks are investigating the broader implications of retail CBDCs but are generally less hasty in their implementation.
India’s CBDC Pilot
- India, part of the G20 and among the 36 countries experimenting with CBDCs, launched both wholesale and retail digital Rupee (e-Rupee) pilots in 2022. As of June 2024:
- Retail CBDC Pilot: About 5 million users and 420,000 merchants are involved. Daily transactions through interoperability with the Unified Payments Interface (UPI) peaked at one million.
- Usage Patterns: Despite the growing popularity of the retail CBDC, the UPI remains a preferred method for many users, reflecting ongoing consumer habits.
Interest-bearing vs. Non-interest Bearing CBDCs
A crucial design decision for CBDCs is whether they should bear interest:
- Interest-bearing CBDCs: These could enhance monetary policy transmission by making policy rate changes more effective. However, there’s concern that such CBDCs might lead to a withdrawal of deposits from banks, potentially squeezing their margins.
- Non-interest Bearing CBDCs: These are more akin to cash and avoid the complications associated with interest-bearing versions. India has chosen this model, while the Bank of Israel has decided to issue an interest-bearing CBDC to encourage competition among banks.
CBDCs and Cryptoassets
The rise of stablecoins and other cryptoassets has influenced central banks’ interest in CBDCs. Stablecoins, such as USDC, are increasingly used for international remittances due to their low-cost transfer benefits. As a response:
- Regulatory Frameworks: Many central banks are developing regulations for cryptoassets and stablecoins. For instance:
- UK: The Financial Services and Markets Act (FSMA) aims to regulate cryptoassets and stablecoins.
- EU: Markets in Crypto-Assets Regulations (MiCA) came into effect from June 2024, focusing on issuers and service providers of cryptoassets.
- Turkey: New legislation introduces a licensing scheme for crypto firms.
Regulatory Challenges
The regulation of cryptoassets faces several challenges:
- Lack of Consensus: Different jurisdictions use varying definitions and classifications for cryptoassets, leading to inconsistencies and regulatory arbitrage.
- Regulatory Fragmentation: The approaches to crypto regulation vary widely between countries, complicating cross-border enforcement and cooperation.
- International Cooperation: There is a strong push for global regulatory standards and cooperation to manage the borderless nature of cryptoassets effectively.
Case Study: WazirX Security Breach
- The security breach of WazirX, an Indian crypto exchange, highlighted the need for robust regulations and consumer protection mechanisms in the crypto space.
- The breach led to significant losses and underscored the importance of swift recovery and resolution mechanisms.
| CARE MCQ | UPSC PYQ |
Q5. Consider the following statements about interest-bearing and non-interest-bearing CBDCs:
Which of the above statements are correct? A) 1 and 2 only B) 1 and 3 only C) 2 and 3 only D) All 1, 2, and 3 |
Q. With reference to Central Bank digital currencies, consider the following statements : (2023)
Which of the statements given above is/are correct? (a) 1 only Ans: (c) |
| Answer 5 A
Explanation
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