22-AUGUST-2021

The Hindu News Analysis – 22nd August 2021 – Shankar IAS Academy
S. Page Number*
News Articles
No. C B D H T

1 Are oil bonds to blame for high fuel prices? (FAQ) 17 11 11 13

2 Power play (FAQ) 17 11 11 13

Will changes in AERA Act help smaller airports? (FAQ)

NO EDITION
3 17 11 11 13

4 Green mermaid 16 10 10 12

5 Makers of madur mats win accolades 14 8 8 10

6 The colourful molecules of turmeric 16 10 10 12

7 Prelims Practice Questions

@ end of the video
8 Mains Practice Question
*C – Chennai; B – Bengaluru; D – Delhi; H – Hyderabad; T – Thiruvananthapuram
Pg: 17 – C;
Pg: 11 – B, D;
Pg: 13 – H;
 Oil Bonds
Part A—Preliminary Examination
Paper I - (200 marks) • Long-dated Special Securities issued by our government.
 Current events of national and international • Issued between 2005 and 2010 to oil marketing companies
importance.
(OMCs) - Indian Oil Corporation, Hindustan Petroleum
Part B—Main Examination
Corporation and Bharat Petroleum Corporation.
PAPER-III
General Studies- II: Governance, Constitution,
• Reason
Polity, Social Justice and International relations.
 Oil marketing companies (OMCs) were selling petroleum
 Government policies and interventions for
products at a loss.
development in various sectors and issues
arising out of their design and implementation.  In order to cover the under-recovery Oil bonds were
PAPER-IV issued.
General Studies-III: Technology, Economic
 Under-recovery - Denote the notional losses that oil
Development, Bio diversity, Environment,
Security and Disaster Management.
companies incur due to the difference between the

 Infrastructure: Energy, Ports, Roads, Airports,

subsidized price at which the oil marketing companies
Railways etc. sell certain products and the price which they should
have received for meeting their cost of production.
• Oil bonds paid an annual interest from
6.35% to 8.4% to OMCs.

 On maturity - face value of the bonds

would be paid to the OMCs.

• ₹1.34 lakh crore worth of Oil bonds were

issued.

• Issued only up to 2010.

 Petrol prices were deregulated.

 OMCs’ under-recovery was brought into

control and Oil bonds were no longer
necessary.
Government Explanation  Targets - Repay Rs 10,000 crore in the

• Financial burden of the issued Oil bonds - current fiscal year, Rs 31,150 crore in 2023-24,

High price for petroleum products. Rs 52,860 crore in 2024-25, and Rs 36,913
crore in 2025-26.
 High excise duties and other levies on
petroleum products - Financial burden of  High excise duty and other levies on petroleum

issued Oil bonds. products - Collected to repay the Rs 1.34 lakh

crore.
• Not Factually Correct.

 Government has so far paid Rs 70,195.72

crore as interest on oil bonds in the
last seven years.

 Paid Rs 3,500 crore as principal.

 Principal amount remaining - Rs 1.3 lakh

crore.
 • Globally the price of crude oil keeps coming down.
 2020-2021 - Rs 3.71 lakh crore as
central excise revenues from petroleum
products alone.

 Nearly three times of what the

government has to pay (Rs 1.34 lakh
crore).

 Government using the Oil bonds as an

excuse to collect higher amount from
petroleum products.

 High charges on Petroleum products to

balance out the loss of revenue caused
• No proper justification for the unjustified price
by Covid-19 pandemic.
increase of Petroleum products.
Pg: 17 – C;
Pg: 11 – B, D;
Pg: 13 – H;
Electricity Amendment Bill 2021
• Higher penalties for failure to meet
• De-license power distribution allowing private sector
Renewable energy Purchase Obligations
players to enter the sector and compete with
(RPOs).
state-owned power distribution companies (discoms).
• Requirement that Regional Load
• Would allow consumers to choose between power
Dispatch Centres and State Load
distribution companies.
Dispatch Centres follow instructions by
Objections the National Load Dispatch Centre -

• Entry of private players could lead to “cherry- Can compromise federalism.

picking”, with private players providing power to only

commercial and industrial consumers and not Way forward
residential and agricultural consumers.
• Universal service obligation
• Cross subside the power consumption can be
dismantled.
Pg: 17 – C; Pg: 11 – B, D; Pg: 13 – H;
 Part A—Preliminary Examination
Paper I - (200 marks)
 Current events of national and international importance.
 Indian Polity and Governance - Constitution, Political System, Panchayati Raj,
Public Policy, Rights Issues, etc.
 Economic and Social Development-Sustainable Development, Poverty, Inclusion,
Demographics, Social Sector Initiatives, etc.
Part B—Main Examination
PAPER-IV
General Studies-III: Technology, Economic Development, Bio diversity,
Environment, Security and Disaster Management.
 Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
Airports Economic Regulatory Authority of
Airports Economic Regulatory Authority of
India (Amendment) Bill, 2021 India Act, 2008 (AERA act)

• Aims to amend the AERA act. • Provides for the establishment of Airports

• Amendment - to the definition of Major Airports. Economic Regulatory Authority (AERA).

 To encourage development of smaller airports.  Independent economic regulator.

 Insert “or a group of airports” after the ‘any  Regulates tariff and other charges for

other airports’. the aeronautical services rendered at

airports.
• Central govt. empowered to group airports and
notify them as major airport. • AERA - determining tariff for the
aeronautical services rendered at major
 Grouping - club/pair airports - including
airports.
smaller airports.
 THE AIRPORTS ECONOMIC REGULATORY AUTHORITY OF INDIA ACT, 2008
1. Short title, commencement and application.—
(3) It applies to—
(a) all airports whereat air transport services are operated or are intended to be operated, other than airports and
airfields belonging to or subject to the control of the Armed Forces or paramilitary Forces of the Union;
(b) all private airports and leased airports;
(c) all civil enclaves;
(d) all major airports.
2. Definitions.—In this Act, unless the context otherwise requires,—
(a) "aeronautical service" means any service provided—
(i) for navigation, surveillance and supportive communication thereto for air traffic management;
(ii) for the landing, housing or parking of an aircraft or any other ground facility offered in connection with aircraft
operations at an airport;
(iii) for ground safety services at an airport;
(iv) for ground handling services relating to aircraft, passengers and cargo at an airport;
(v) for the cargo facility at an airport;
(vi) for supplying fuel to the aircraft at an airport; and
(vii) for a stake-holder at an airport, for which the charges, in the opinion of the Central Government for the reasons to
be recorded in writing, may be determined by the Authority;
Airports Economic Regulatory Authority of
Airports Economic Regulatory Authority of
India (Amendment) Bill, 2021 India Act, 2008 (AERA act)

• Aims to amend the AERA act. • Provides for the establishment of Airports

• Amendment - to the definition of Major Airports. Economic Regulatory Authority (AERA).

 To encourage development of smaller airports.  Independent economic regulator.

 Insert “or a group of airports” after the ‘any  Regulates tariff and other charges for

other airports’. the aeronautical services rendered at

airports.
• Central govt. empowered to group airports and
notify them as major airport. • AERA - determining tariff for the
aeronautical services rendered at major
 Grouping - club/pair airports - including
airports.
smaller airports.
Need  Non-profitable airports to be clubbed/paired
with profitable airports and given as a
• Smaller airports - small and low traffic
package to prospective bidders/investors.
potential - non-profitable and in loss.
• Standalone tariff for smaller airports - tariff
 Do not attract reasonable competitive bids.
will be unreasonably high.
• Major Airports - Airports authority of India
leasing under the public-private partnership
Benefits
(PPP) mode.
• Ensures integrated development of smaller and
 2019 - AAI awarded 6 airports for non-profitable airports with profitable
operations, management and development airports.
under PPP.
• Smaller airports will develop faster -
 Suggestion for joint development - club/pair professional efficiency of private operators.
each PPP airports with nearby smaller
• Enhances the air connectivity in far-flung
airports.
areas.
Apprehensions

• Lack of clarity in the criterion for clubbing

airports.

• Fear of monopoly by private players in the

aviation sector.
Pg: 16 – C;
Pg: 10 – B, D;
Pg: 12 – H;
Pg: 14 – C;
Pg: 8 – B, D;
Pg: 10 – H;
• News - Two women from West Bengal given the
National Handicraft Award.

 Independence Day - announcement of awards

 Honour skills in making madur floor mats -

unique to West Bengal. Reed

• Making of Madur mats:

 Madur mats - made up of natural fibres. Bamboo-frame loom

 Produced on a simple bamboo-frame loom

 Cotton thread used as the warp

 Single reeds as the weft

 Reeds - tall plants, like grass, that grows in

or near water.
Image source:
https://www.naturallybengal.com
 • Origin - West Bengal - Muslim period

 When ‘Masland’ mats produced under royal

patronage.
 Warp and weft - two basic components
used in weaving to turn thread or yarn  “Masland '' are fine quality madur mats -
fine cotton is used as weft.
into fabric.
 Mats - collected as revenue of the Jaigirdari
 On a frame or loom, the lengthwise or
system.
longitudinal warp yarns are held stationary
in tension while the transverse weft is  1744 - Nawab Alibardi Khan issued a charter
drawn through and inserted over and under to the Jaigirdars - it was obligatory to
the warp. supply ‘Masland’ mats for use in the
collectorate.
 • Madurkathi
• Price of a madur mat - range from
 Madurkathi - mats woven in West Bengal
₹100 to ₹1 lakh.

 Mat weaving - primary source of  Use reed called madur kottir/madurkathi.

income for 77% of the craft  It is a rhizome-based plant (Cyperus tegetum or

persons. Cyperus pangorei)

 Around 74% of the weavers make  Found abundantly - alluvial

hand woven mats - remaining tracts of Purba and
develop loom-based products. Paschim Medinipur.

 Besides making folding mats - also  April 2018 - Awarded

make various utility items and geographical indication (GI)
accessories - ex: bags, folders, tag by Geographical
table mats, runners, coasters, Indication Registry.
boxes etc.

Madurkathi or Cyperus pangorei

Pg: 16 – C;
Pg: 10 – B, D;
Pg: 12 – H;
Source: Healthline. com
Turmeric
Scientific Community
• Essential part of our daily food.
• Healthline.com.
• Medicine - Anti-bacterial, anti-oxidant and
 Curcumin - Powerful anti-inflammatory
anti-inflammatory properties.
and anti-oxidant properties.
• Herbal medicine experts - Treat painful symptoms
 Treat arthritis and joint inflammation.
of arthritis, joint stiffness and joint pain.
 Better the action of conventional drugs -
• Cure acute kidney injuries.
Prozac (antidepressant medication).
• Healing properties.
 Treat depression in people.
• Two component molecules - Curcumin & Piperine.
 Reduces the build-up of insoluble protein
• Curcumin - Polyphenol diketone. in our brain.

• Piperine - Alkaloid.  Prevent Alzheimer disease.

 Boost neurons (nerve cells) - Helping in
memory and learning.

 Paper published in the University of

California - Daily intake of Curcumin can
lead to improved memory and attention
in adults.

 Covid-19 and Turmeric.

 Paper published in the Frontiers in

Pharmacology

- Turmeric - Reduce morbidity and

mortality among Covid-19 patients.
 .

Practice Question – Prelims Practice Question – Prelims

Q1. Turmeric can be used to treat which
Q2. Consider the following pairs:
of following medical conditions:
Products States/UTs
1. Arthritis
1. Saffron - Jammu and Kashmir
2. Alzheimer
2. Rasagola - Odisha
3. Depression
3. Madur Kathi - West Bengal
Which of the conditions given above is/are
correct? Which of the above pair is/are correct?
(a) 1 and 3 only a) 1 and 2 only
(b) 1 and 2 only b) 1 and 3 only
(c) 2 and 3 only c) 2 only
(d) 1,2 and 3 d) 1, 2 and 3
 Practice Question – Prelims
Q3. Consider the following statements.
1. Airports Economic Regulatory Authority (AERA)
determines the tariffs for aeronautical services
of both Major and Non-Major Airports. Practice Question – Prelims
2. AERA is chaired by the Union Minister of Civil Answers
Aviation.
Q1. Option D
3. An airport having a passenger throughput in
excess of one and a half million is designated as Q2. Option D
a Major Airport.
Q3. Option D
Which of the statements given above is/are
correct?
a) All of the above
b) 1 and 2 only
c) 3 only
d) None of the above
 Practice Question – Mains
GS – II/III
Q. Crude Oil plays an important role in the
development of a country. In the context
of the given statement, examine the
factors that affect the oil prices in India.
(250 words, 15 Marks)