Time: 45 min Date: 16-03-2022

Indian Economy
Sovereign Green Bond
Syllabus: GS 3/ Economy
In News
● The Finance Minister in her Budget 2022 speech announced the government will
increase capital expenditure to a massive Rs 7.5 trillion in the next fiscal year.
○ The budget announcement that stands out in terms of boosting green
investment is the government’s promise to issue a sovereign green bond.
What is Green Bond?
● It is a type of fixed-income instrument that is specifically earmarked to raise
money for climate and environmental projects.
○ The first green bond was issued in 2007 by the European Investment
Bank, the EU’s lending arm.
○ This was followed a year later by the World Bank. Since then, many
governments and corporations have entered the market to finance green
projects.
● These bonds are typically asset-linked and backed by the issuing entity's balance
sheet, so they usually carry the same credit rating as their issuers’ other debt
obligations.
● They are designated bonds intended to encourage sustainability and to support
climate-related or other types of special environmental projects.
● Aims and Objectives:
○ They are aimed at energy efficiency, pollution prevention, sustainable
agriculture, fishery and forestry, the protection of aquatic and terrestrial
ecosystems, clean transportation, clean water, and sustainable water
management.
○ They also finance the cultivation of environmentally friendly technologies
and the mitigation of climate change.

Web: www.nextias.com 1 Mob.: 8081300200

Related information
● The annual issuance could hit $1 trillion in 2023, according to the Climate Bonds
Initiative.
● The US is the largest source of green bonds but the European market is also
growing very fast with issuance of $300 billion coming up in the next five years.
● France is the largest sovereign issuer to date, raising total capital of US$51 billion,
followed by Germany at US$27 billion and the United Kingdom at US$21.6
billion.
○ These bonds were oversubscribed by 8-12 times which is a sign of huge
investor demand.
What is the need of Green Bonds?
● Climate changes affect all of us. But it is expected to hit the developing countries
the hardest: Its potential effects on temperatures, precipitation patterns, sea levels
and frequency of weather related disasters pose risks for agriculture, food and
water supplies.

Web: www.nextias.com 2 Mob.: 8081300200

 ● At stake are the recent gains in the fight against poverty, hunger and disease,
and the lives and livelihoods of people living in developing countries: Clean
water and food security are at risk in the world today and about 1 million of the
planet’s 8 million animal and plant species face extinction.
● It’s critical to connect environmental projects with capital markets and investors
and channel capital towards sustainable development.
Challenges associated with Green Bonds
● Borrowing programme:
○ The government has a gross borrowing programme of around 14.95-lakh
crore.
○ But in this case there will be earmarking of the amount raised to specific
targeted projects. Therefore, the crux is that the recipients of such funds
should be compliant.
● Monitoring challenge:
○ There would be a challenge with respect to monitoring how this green
grading performs.
○ This will be a challenge until such time the system of evaluation is
streamlined as deviations from the norm are hard to capture.
● Pricing issue:
○ Should they be lower than the regular bond or higher is the major question
here.
○ Ideally, it needs to be higher; this is because investors need to be rewarded
for choosing to promote ESG goals.
○ On the other side it can be argued that the rates can be lower than normal
because investors like to reward green projects, anyway.
● Overseas launch:
○ The downside is that once the government goes global, then credit rating
will matter a lot as all bonds issued globally need to be rated.
○ Once one is rated by them, there is constant scrutiny on domestic policies.
Presently, this does not matter because the government of India does not
borrow from the overseas market.
Benefits of investing in green bonds

Web: www.nextias.com 3 Mob.: 8081300200

 ● Environmental causes: Green bonds provide a way to help environmental causes
through investing.
● Buying a green bond might be too costly for retail investors: Still there are green
bonds that make it easy to invest in baskets of green bonds.
● Exemption from taxes: Green bonds provide you with a way to earn income that
is exempt from taxes.
● No Harm: The money that is being invested is being used in a way that is not
harmful.
● Fight climate change: The green angle attracts a growing number of people who
are more aware of and want to act to help fight climate change.
● Higher demand for green bonds equals lower cost of money which means
reduced spending for business: These savings are passed on to the investor in the
form of a dividend or used to lower the cost of funds thus increasing profitability.
● Some issuers also use the money to help restore water habitats and biomes and
to take steps to reduce carbon output: These bonds tend to carry the same credit
rating as other debts issued by the same firm.
● Longer maturities can lower the borrowing cost for green projects: Sovereign
green bonds have been issued with an average tenor of 14 years the longest being
40 years issued by the Chilean government in 2021 drawing long-term investors
like pension funds, insurers and those with a focus on environmental, social and
governance (ESG) issues.
Green Bonds and India
● The green bonds issuance in India in 2021 was exceptional and is to set a new
record in 2022.
○ India issued $6.11 billion of green bonds in 2021. It was the strongest issue
since the first issue in 2015.
● The government’s promise to issue a rupee-denominated sovereign green bond
is an important step in the right direction.
○ It should also consider issuing the rupee-denominated sovereign bond
offshore (rupee-denominated bonds issued outside India are popularly
known as masala bonds).
● 75% of Indian districts, where over 638 million Indians reside, are classified as
extreme climate event hotspots. The frequency of extreme climate events such as
cyclones, droughts, and floods pose a serious risk to India’s infrastructure.
● Indian Companies have become increasingly conscious of their carbon footprint.
● Banks will step up issuance of green debt to fund their growing lending
programme to accelerate India’s energy transition.
● More Indian issuers will also turn to the offshore bond market to access the
wider and deeper capital pool outside their home country.
● Green bonds issued by emerging markets such as India have a strong appeal to
foreign investors due to relatively attractive valuation and decent economic
growth prospects.

Web: www.nextias.com 4 Mob.: 8081300200

 ● India will need $10.103 trillion by 2070 to be carbon-neutral. The cumulative
investments needed for net-zero societies may be bigger than India’s current size
of the economy.
● The green bonds initiative by the government should bring in a new set of
investors to India’s debt market even as the Budget was silent on India’s inclusion
in global bond indices.
● Sovereign green bonds can support the proliferation of electric buses and allied
charging infrastructure in India by providing cost-effective financing options.
Way Forward
● To tackle this immense challenge must involve both mitigation to avoid the
unmanageable all while maintaining a focus on its social dimensions: To
address climate change it requires unprecedented global cooperation across
borders. Green bonds are the way to make this connection.
● Investment from a developed economy will be the need of the hour.
● The flows from green bonds could be derailed for some time due to the war
between Ukraine and Russia but over the long term we should be moving ahead
fast in reshaping the climate debate and ensuring more funding for climate
friendly initiatives.
● Developing markets, including Serbia, Nigeria, Egypt, Colombia, Fiji,
Indonesia and Benin, have also issued sovereign green bonds.
○ The proceeds were allocated to climate mitigation or adaptation projects.
Source: ET

Science and Technology

3D Printing for Military Construction
Syllabus: GS 3/ Science & Technology, Defence
In News
● India’s defence infrastructure development agency MES (military engineering
services), has built two houses in South-Western Air Command, Gandhinagar and
Jaisalmer, tapping 3D rapid construction technology from the private sector.
Related information
● Chennai based startup Tvasta: These constructions are done in collaboration with
the Chennai based startup Tvasta.
● Tvasta, a non-profit organization, was one of the first to successfully develop a
one-storey 3D printed house that met protocols for traditional houses.
○ The startup has been working with state-owned Central Building Research
Institute and Structural Engineering Research Centre for approvals to
ensure that the 3D printed structures are safe to live in.
● The Indian armed forces are not the only defence organization to explore the use
of 3D printed structures.
○ Last year, the US Army unveiled a 3D-printed 3,800 sqft barrack in Texas.

Web: www.nextias.com 5 Mob.: 8081300200

What is 3D printing or additive manufacturing?
● It uses computer-aided designing to make prototypes or working models of
objects by laying down successive layers of materials such as plastic, resin,
thermoplastic, metal, fiber or ceramic.
● With the help of software, the model to be printed is first developed by the
computer, which then gives instructions to the 3D printer.
Significance of 3D printing in armed forces
● The use of 3D printers by the Indian military is, however, not confined to
houses alone.
○ The 3D printed houses for the Indian Air Force (IAF) were deployed within
35 days, while traditional construction would have taken six months.
● It can be used to make bunkers and parking facilities for military vehicles in
border areas where traditional construction is challenging due to harsh weather
conditions and short supply of labour due to the threat from hostile neighbours.
● The quick turnaround time is a key driver for increasing interest in 3D printing
technology.
● The construction of 3D-printed structures is also not labour-intensive.
○ While some parts are printed remotely and then assembled at the site,
printers can be set up on-site to print and assemble if required.
● These structures also stand testament for the solidarity of the Indian Armed
Forces in fostering home-grown technologies that are focused on indigenization
of Defense technologies, as a part of Atmanirbhar Bharat.
Advantages of 3D printing
● It Is Affordable
○ 3D printing is a single-step manufacturing process, so it not only saves you
the costs linked to using different manufacturing processes and machines
but also valuable time.
○ 3D printers do not need constant supervision as they can perform specific
tasks once they are set; thus, you do not need to be around at all times.
● Rapid Prototyping
○ You can cheaply and quickly create a new prototype with every design
modification, unlike the expensive and lengthy prototype machining
process.
● Sturdy and Lightweight Parts
○ 3D printing allows complex, organic shapes to be made that are much
lighter than traditionally machined parts.
○ In the aerospace and automotive industry, this is a vital factor as the use of
lightweight materials helps improve fuel efficiency.

Web: www.nextias.com 6 Mob.: 8081300200

 ● Environmentally Friendly
○ The use of 3D printing technology reduces the quantity of waste materials
created during the production process.
● Improved Healthcare Facilities
○ 3D printing has revolutionized the medical sector as it is now possible to
print human body organs such as hearts, kidneys, and livers.
Disadvantages of 3D Printing
● Restricted Build Size
○ The chamber size integrated into 3D printers is usually relatively small,
thereby restricting the part sizes that you can print. Therefore, any larger
item needs to be printed separately and later assembled after its production.
● Job Losses in The Manufacturing Sector
○ The use of 3D printing allows you to create prototypes and product designs
within a few hours with one simple step.
○ Most of the steps followed in subtractive manufacturing are eradicated, and
this helps save on the cost of labor as fewer people need to be hired to
complete the manufacturing process.
● Not Very User-Friendly
○ It is a new technology; there is often an element of trial and error required
when creating parts on a 3D printer.
● Limited Materials
○ The materials needed during the manufacturing process are limited, with
some still being developed.
● 3D Printing Machines are Expensive
○ The materials and equipment used in 3D printing are costly because the
initial capital required to embark on using 3D printing technology is
prohibitively expensive.
● Production of Dangerous Items
○ Creating explosives, guns, knives as well as other harmful weaponry is
theoretically more accessible because of 3D printing technology.
○ This is because it gives people access to a method of manufacturing items
in their own homes that were previously impossible.
Way Forward
● Inclusion in all the sectors: To get ahead in the additive manufacturing or 3D
printing space, India must adopt it in all sectors, including in defence and public
sectors.
● An apex body which has subject matter experts and leaders from local and global
industries could be established to lead the mission.

Web: www.nextias.com 7 Mob.: 8081300200

 ● The national strategy should address the need for skilled manpower in various
job profiles including operators, engineers, R&D personnel, technology broking
and management.
● The government’s financial support and private funding would be needed to
promote the domestic AM ecosystem and supply chains.
Source: LM

Biodiversity and Environment

Detailed Project Reports (DPRs) on Rejuvenation of Major

Rivers
Syllabus :GS 3/Conservation
In News
● Recently, the Ministry of Environment, Forest and Climate Change released
Detailed Project Reports (DPRs) on rejuvenation of thirteen major rivers
through forestry interventions.

Image Courtesy: TOI

Web: www.nextias.com 8 Mob.: 8081300200

About Detailed Project Reports (DPRs)
● The DPRs were funded by National Afforestation & Eco-development Board,
(MoEF&CC) and prepared by Indian Council of Forestry Research & Education
(ICFRE), Dehradun.

● These DPRs will create a target of green cover expansion for upcoming 10 years
and 20 years, then the future generations will get a ‘Green India’ through the ‘Van
Bhagidari and Jan Bhagidari’ of the current generation.

● The DPRs are expected to be executed through the State Forest Departments as
nodal departments and with convergence of schemes of other line departments in
the states towards the activities proposed in the DPRs and funding support from
the Government of India.

● The thirteen rivers for which the DPRs are released are Jhelum, Chenab, Ravi,
Beas, Sutlej, Yamuna, Brahmaputra, Luni, Narmada, Godavari, Mahanadi,
Krishna, and Cauvery.

○ The 13 rivers collectively cover a basin area of 18,90,110 sq. km. or about
57.45% of the geographical area. Their length including 202 tributaries
within the delineated surroundings is 42,830 km.

● The rivers along with their tributaries are proposed for forestry interventions in
the riverscape under different landscapes namely natural landscape, agricultural
landscape and urban landscape.

■ The different models of forestry plantations including timber

species, medicinal plants, grasses, shrubs and fuel fodder and fruit
trees are aimed to augment water, ground water recharge and
contain erosion.

● Focused areas:

○ The DPRs focus on protection, afforestation, catchment treatment,

ecological restoration, moisture conservation, livelihood improvement,
income generation, ecotourism by developing river fronts, eco-parks and
bringing awareness amongst the masses.

Web: www.nextias.com 9 Mob.: 8081300200

 ○ Research and monitoring have also been included as a component.

○ Each DPR incorporates detailed geospatial analysis of the delineated

Riverscape, exhaustive review on the river environment, factors
responsible for the current state and prioritisation of areas using Remote
sensing and GIS techniques along with field verification for proposed
forestry interventions and other conservation measures through an
extensive consultative process and designing and development of various
treatment models for Natural, Agriculture & Urban landscape in each of the
delineated riverscape.

Expected Benefits
● Forestry interventions are expected to increase the cumulative forest cover by
7,417.36 km2 across 13 riverscapes.

● The proposed interventions would help to sequester 50.21 million tons CO2
equivalent in 10-year-old plantations and 74.76 million tons CO2 equivalent in 20-
year-old plantations.

● The proposed interventions in thirteen riverscapes would help in ground water

recharge to the extent of 1,889.89 million cubic metres per year, and reduction in
sedimentation to the tune of 64,83,114 cubic metres per year.

● In addition, Rs. 449.01 crore is likely to be generated from expected non-timber

and other forest produce.

● It is also expected that the employment of 344 million man-days shall be

generated through planned activities as provisioned in 13 DPRs.

● The activities proposed in the DPRs will help achieve potential benefits of
increasing the green cover, contain soil erosion, recharge water table and sequester
carbon dioxide in addition to benefits in the form of non-timber forest produce.

● These efforts would help India meet its international climate commitments of
creating an additional carbon sink of 2.5 -3 billion tonnes of CO2 equivalent
through additional forest and tree cover by 2030 under the Paris Agreement of the
UNFCCC; restore 26 million hectares of degraded lands by 2030 and halt
biodiversity loss by 2030 under CBD and Sustainable Development Goals.

● Other major benefits are

Web: www.nextias.com 10 Mob.: 8081300200

 ○ Protection of natural resources & ecological restoration

○ Saving aquatic life

○ Treatment of catchment areas

○ Moisture conservation

○ Afforestation leading to less pollution

○ Promotion of ecotourism by developing river fronts, eco-parks etc.

○ Income generation for many and improved livelihood

○ Development of a solid River Rejuvenation Plan, paving way for treatment

of other polluted rivers

○ Generating mass awareness through setting example and public

participation

Challenges
● Growing water crisis on account of depleting fresh water resources especially
due to shrinking and degradation of river ecosystems is a major impediment to
achieving national goals pertaining to environment, conservation, climate
change and sustainable development.

Way Forward
● Timely and effective implementation of the proposed forestry interventions as
envisaged in DPRs of 13 major Indian Rivers is expected to significantly contribute
towards improvement of terrestrial and aquatic biota, and livelihoods besides
rejuvenation of the rivers in terms of Aviral Dhara, Nirmal Dhara besides
Swachchh Kinara.

● The projects will alleviate the growing water stress and help achieve national goals
related to climate change and sustainable development.

● There is a need to focus on balancing development with environmental

sustainability.

Source:TH

Web: www.nextias.com 11 Mob.: 8081300200

 Indian Economy
RBI's Regulatory Framework for Microfinance
Syllabus: GS 3/ Indian Economy & related issues

In News

● Recently, the Reserve Bank of India (RBI) allowed Microfinance Institutions(MFI)

the freedom to set interest rates they charge borrowers, with a caveat that the
rates should not be usurious.

○ These guidelines will take effect 1st April 02022.

○ Earlier in 2021, the RBI proposed to lift the interest rate cap on MFI.

About

● Banks remain the largest microfinance lenders with an about 40% market share,
followed by NBFC-MFIs, small finance banks, other NBFCs and NGOs.

Changes Made by RBI

● The margin cap on lending rates was introduced a decade back to stop NBFC-
MFIs from charging usurious rates.
○ The RBI now offered freedom in fixing board-approved lending rates, but
warned that those should not be usurious and that the rates would come
under its supervisory scrutiny.
● Revised the definition: The RBI raised the annual household income to Rs 3 lakh
for a collateral-free loan to be classified as microfinance loan.

Web: www.nextias.com 12 Mob.: 8081300200

 ○ So far, such loans given to households with an annual income of Rs 1.25
lakh in rural India and Rs 2 lakh in urban and semi-urban areas were
classified as microfinance loans.
○ The RBI has revised the minimum requirement for microfinance loans for
NBFC-MFIs to 75 per cent assets from 85 per cent earlier.
● Unsecured loans: by several other non-banking finance companies will also be
considered as micro loans now.
○ All such loans, irrespective of the end-use, will come under this
classification.
● It capped the monthly loan repayment of borrowers that should not exceed half
the monthly household income.
○ The move is aimed to protect borrowers from falling into a debt-trap.
● No penalty: No loan can be linked to a lien on the deposit account of the borrower.
There will be no prepayment penalty on microfinance loans.
● RBI removed certain exemptions applied to not-for-profit entities with Rs 100
crore and directed them to register as NBFC-MFIs within three months to bring
them within its ambit.
● RBI has asked the lenders to prominently display the minimum, maximum, and
average interest rates charged on loans in all its offices.
● Increased the maximum limit: The RBI has revised the criteria for NBFCs who do
not qualify as NBFC-MFIs to extend microfinance loans up to 25 per cent of their
total assets from 10 per cent earlier.
What was the need? / Significance of the move
● Uniform regulatory platform: Changes are made to put all microfinance lenders
including banks, small finance banks, and NBFC and not-for-profit companies on
a uniform regulatory platform.
● Reducing the pressure: The rule of a 50% fixed obligation to income ratio being
applied uniformly to all categories of borrowers will reduce the pressure, lower
delinquency and lower credit costs for the industry.
● Risk-based pricing: The removal of the interest rate cap would allow these lenders
to go for risk-based pricing.
● Increasing the outreach: Raising the household income threshold will help MFIs
reach many more households. With a level playing field and increased
competition, the end customers will benefit.
● Credit history: Lending rate henceforth may be a little higher for new lenders
without credit history, while lenders with robust repayment track record may
enjoy softer rates.
● Over-indebtedness: The harmonized regulations will address concerns related to
the over-indebtedness of microfinance borrowers.

Web: www.nextias.com 13 Mob.: 8081300200

What is Microfinance?
● Microfinance is a form of financial service which provides small loans and
other financial services to poor and low-income households.
● MFIs are financial companies that provide small loans to people who do not
have any access to banking facilities.
● The definition of “small loans” varies between countries. In India, all loans that
are below Rs. 1 lakh can be considered as microloans.
● Microcredit is delivered through a variety of institutional channels viz:
○ Scheduled commercial banks (SCBs) (including small finance banks
(SFBs) and regional rural banks (RRBs)).
○ Cooperative banks.
○ Non-banking financial companies (NBFCs).
○ Microfinance institutions (MFIs) registered as NBFCs as well as in other
forms.

Source: ET

Agriculture
Agristack
Syllabus: GS3/ Agriculture and related issues
In Context
● India’s largest agri-trading marketplace Agribazaar has recently announced that
it will be offering a 'remote sensing crop model' to farmers.
What is a remote sensing crop model?
● Remote sensing refers to the process where scientific data and observations are
collected about an object without needing to be at the same location physically.
● This exercise is often carried out through a variety of instruments, including
measuring an object’s reflected and emitted radiation through a satellite.
Significance
● Remote sensing in agriculture refers to the process of collecting information about
soil and the land.
● Through the Remote Sensing model, scientists and agricultural experts are able
to measure characteristics like nutrient deficiencies, water deficiency or surplus,
weed infestations, insect damage, hail damage, wind damage, herbicide damage,
plant populations and presence of diseases.
● The collection of this data allows for the easy implementation of precision
farming.
○ Precision farming refers to a farming management concept where inputs
are carefully chosen to increase average yields.
○ Precision farming leads to a higher average yield per unit of land when
compared to traditional farming while also using available resources and
inputs judiciously.

Web: www.nextias.com 14 Mob.: 8081300200

What is Agristack?
● About:
○ The AgriStack is a collection of technologies and digital databases proposed
by the Central Government focusing on India’s farmers and the agricultural
sector.
○ The central government has claimed that these new databases are being
built to primarily tackle issues such as poor access to credit and wastage in
the agricultural supply chain.
● Features:
○ Under AgriStack’, the government aims to provide ‘required data sets’ of
farmers’ personal information to Microsoft to develop a farmer interface for
‘smart and well-organized agriculture’.
○ The digital repository will aid precise targeting of subsidies, services and
policies.
○ Under the programme, each farmer of the country will get what is being
called an FID, or a farmers’ ID, linked to land records to uniquely identify
them. India has 140 million operational farmland holdings.
Benefits
● Information flow: Agristack will provide all information about farmers and their
farming easily to corporations who look at farmers as a consumer base. It will give
data to machinery companies or fintech companies and to those for whom farmers
were suppliers like the food industry, garment industry, etc.
● Marketing Network: FPOs had become the new data collection points as well as
market channels for the seed and agrochemical industry and Agri commodity
traders. This data can be sold by the companies to private input dealers and input
companies to aid their marketing network.
● Increasing Commercialisation: The formation of ‘Agristack’ also implies the
commercialisation of agriculture extension activities as they will shift into a digital
and private sphere.
● Provides Indemnity: There is a non-disclosure agreement in the MoU, there is also
a clause on ‘limitation of liability which essentially provides indemnity for breach
of contract.
Challenges
● Information asymmetry: This can lead to information asymmetry, tilted towards
the technology companies. This can further exploit farmers, especially small and
marginal ones.
● Data Sharing: In all the MoUs, there are provisions under which the agriculture
ministry will enter into a data-sharing agreement with the private companies of
the likes of Amazon, Microsoft and Patanjali. This can lead to a breach of privacy.

Web: www.nextias.com 15 Mob.: 8081300200

 ● Data privacy: The project was being implemented in the absence of data protection
legislation. It might end up being an exercise where private data processing
entities may know more about a farmer’s land than the farmer himself. Without
the safeguards, private entities would be able to exploit farmers’ data to whatever
extent they wish to.
● Financial exploitation: Once Fintech companies are able to collect granular data
about the farmers’ operations, they may offer them exorbitant rates of interest
precisely when they would be in the direst need of credit.
● No fixed selection criteria: The government has now invited more technology /
agritech players for collaboration, even though there is no information on the
process or criteria of selecting the first five companies.
● Exclusions: Making land records the basis for farmer databases would mean
excluding tenant farmers, sharecroppers, women and agricultural labourers. This
could also exclude those associated with allied activities such as fishing,
beekeeping, poultry, animal husbandry, pastoralism, sericulture, vermiculture
and agroforestry from accessing these services on the digital platform because they
may not own agricultural land.
Suggestions
● The government should make further decisions after running various pilot
projects and consulting results with other stakeholders.
● The potential in data and technology in empowering farmers could be realised
with a balanced flow of information.
● The State governments have to make efforts to mitigate their differences over land
ownership with private firms working on pilot projects. There is a need for
effective cooperation among state governments and private firms.
Source: Tribune

Biodiversity & Environment

Global Warming & Permafrost Peatlands
Syllabus: GS3/ Environmental Pollution and Degradation
In News
● A recent study warned that permafrost peatlands in Europe and western Siberia
might be approaching their tipping point faster than expected.

Web: www.nextias.com 16 Mob.: 8081300200

 Image Courtesy: Climate Energy
Key Findings
● Northern europe:
○ By 2040, northern Europe might become too wet and warm to support
permafrost peatlands.
● Peatlands:
○ About:
■ Peatlands are a class of wetlands, which are ecosystems flooded with
water.
○ Helps in carbon dioxide reduction:
■ Waterlogged conditions limit microbial decay of dead plant
materials rich in carbon dioxide.
■ This prevents the reintroduction of the gas into the atmosphere.
■ Peatlands, which occupy only 3 percent of the global land surface,
store twice as much carbon as all the world’s forests.
○ Permafrost Peatlands:
■ Some peatlands are buried under frozen ground or permafrost and
exist as permafrost peatlands.
■ They are found in the northern parts of Alaska, Canada, Russia and
parts of northern Europe
■ Permafrost peatlands in Sweden, Norway, Finland and parts of
European Russia, which are already seeing warmer temperatures,
can reach their threshold before western Siberia

Web: www.nextias.com 17 Mob.: 8081300200

 ● Efforts lost:
○ By 2060, areas of Europe and Western Siberia could lose 75 per cent under
moderate efforts to mitigate climate change.
○ The figure could go as high as 81 per cent and 93 per cent if the world does
little to address the issue.
Problems
● Unsuitable conditions:
○ Huge stocks of peat carbon have been protected for millennia by frozen
conditions, but once those conditions become unsuitable, all that stored
carbon can be lost very quickly
● Affecting climate change:
○ This could release carbon dioxide and methane into the atmosphere, further
accelerating climate change
● Threat to infrastructure:
○ Thawing permafrost could threaten buildings and other infrastructure
standing above it. Sweden, Alaska and Canada in the Arctic are already
witnessing this.
Way Ahead
● Strong climate change mitigation policies can limit or reverse the rate and extent
at which Europe and western Siberia can lose the right climatic conditions to
support permafrost peatlands.
● Peatlands should be kept in a frozen state. This scenario requires strict emissions
targets to be met, reductions to the consumption of energy and materials, and a
fast transition towards sustainable living.
● Field observations should be done in the peatlands to verify and understand them
better.
Source: DTE
Facts In News
Indian Economy
Inflation Measurement
Syllabus :GS 3/Indian Economy & Related Issues
In Context
Inflation based on the Consumer Price Index (CPI) quickened to 6.07% in February from
6.01% in the previous month .
● Meanwhile, the Wholesale Price Index (WPI)-based inflation accelerated to 13.11%
in February from 12.96% in the previous month.
About Inflation
● Inflation refers to the rise in the prices of most goods and services of daily or
common use, such as food, clothing, housing, recreation, transport, consumer
staples, etc.
○ Inflation measures the average price change in a basket of commodities
and services over time. The opposite and rare fall in the price index of this

Web: www.nextias.com 18 Mob.: 8081300200

 basket of items is called ‘deflation’. Inflation is indicative of the decrease in
the purchasing power of a unit of a country’s currency. This is measured in
percentage.
● Any inflation rate essentially tells us the rate at which prices have been rising in
an economy.
How is Inflation measured?
● In India, inflation is primarily measured by two main indices — WPI (Wholesale
Price Index) and CPI (Consumer Price Index), which measure wholesale and
retail-level price changes, respectively.
What are WPI and CPI inflation rates?
● Consumer Price Index (CPI)
● It is an index measuring retail inflation in the economy by collecting the
change in prices of most common goods and services used by consumers.
● CPI is also called a market basket, it is calculated for a fixed list of items
including food, housing, apparel, transportation, electronics, medical care,
education, etc.
● The base Year for CPI is 2012.
● Types: In India, there are four consumer price index numbers, which are
calculated, and these are as follows:
● CPI for Industrial Workers (IW)
● CPI for Agricultural Labourers (AL)
● CPI for Rural Labourers (RL) and
● CPI (Rural/Urban/Combined).
● Of these, the first three are compiled by the Labour Bureau in the
Ministry of Labour and Employment. Fourth is compiled by the
National Statistical Office (NSO) in the Ministry of Statistics and
Programme Implementation.
● the Wholesale Price Index(WPI)
○ The new series of Wholesale Price Index(WPI) with base 2011-12 is effective
from April 2017.
○ WPI captures the average movement of wholesale prices of goods and is
primarily used as a GDP deflator.
○ WPI(2011-12) reckons only basic prices and does not include taxes,
rebate/trade discounts, transport and other charges.
○ WPI-based inflation data is put together by the Department for Promotion
of Industry and Internal Trade (or DPIIT).
Difference between WPI and CPI
● WPI measures the average change in prices of goods at the wholesale level while
CPI calculates the average change in prices of goods and services at the retail level.
● The base year for WPI is 2011-12 while the base year for CPI is 2012.
● WPI takes into account the change in price of goods only, while CPI takes into
account the change in process of both goods and services.
Source:IE

Web: www.nextias.com 19 Mob.: 8081300200

 Biodiversity and Environment
Great Indian Bustard (GIB)
Syllabus :GS 3/Species in News
In Context
● Important steps taken by the Government for protection of Great Indian Bustards
in the country including details of captive breeding facilities have been
highlighted recently .
Great Indian Bustard (GIB)
● About:
○ One of the heaviest flying birds endemic to the Indian subcontinent.
○ State Bird of Rajasthan
● Habitat:
○ Untamed, Arid grasslands.
○ A Maximum number of GIBs were found in Jaisalmer and the Indian Army-
controlled field firing range near Pokhran, Rajasthan.
○ Other areas: Gujarat, Maharashtra, Karnataka and Andhra Pradesh.
● Population:
○ As per the studies conducted by Wildlife Institute of India, there are around
150 Great Indian Bustards left across the country which includes about 128
birds in Rajasthan and less than 10 birds each in the States of Gujarat,
Maharashtra, Andhra Pradesh and Karnataka.
● Protection Status:
○ IUCN Status: Critically Endangered.
○ Listed in Wildlife Protection Act’s Schedule 1.
● Threats to the Bird:
○ Hunting, Intensification of agriculture, Power lines.
Indian Initiatives for Protection of GIB
● ‘Habitat Improvement and Conservation Breeding of Great Indian Bustard-an
integrated approach’:
○ The Ministry with financial support from National Authority for
Compensatory Afforestation Funds has sanctioned an outlay of Rs. 33.85
crores for the duration of five years for the programme titled ‘Habitat
Improvement and Conservation Breeding of Great Indian Bustard-an
integrated approach’.
○ The objective :
■ to build up the captive population of Great Indian Bustard and to
release the chicks in the wild for increasing the population and also
to promote in-situ conservation of the species.
● Task Force:
○ The Ministry has also constituted a Task Force for suggesting Eco- friendly
measures to mitigate impacts of power transmission lines and other
power transmission infrastructures on wildlife including the Great Indian
Bustard.

Web: www.nextias.com 20 Mob.: 8081300200

 ● The Great Indian Bustard has been included in the Appendix I of Convention on
Migratory Species (CMS) on the basis of a proposal submitted by India.
○ It was also the mascot of the prestigious 13th CMS Conference of Parties
held in Gandhinagar giving wider publicity for the conservation of the
species.
● Important habitats of Great Indian Bustards are designated as National
Parks/Sanctuaries for their better protection.
● The species has been identified for conservation efforts under the component
‘Species Recovery Programme’ of the Centrally Sponsored Scheme (CSS)-
Development of Wildlife Habitat.
● Directions of the National Green Tribunal (NGT): NGT ordered a time-bound
action plan for the implementation of mitigation measures such as installation of
bird diverters and their regular maintenance and monitoring by power agencies.
● A Bustard conservation breeding centre in Rajasthan has been set up in Jaisalmer.
● Conservation Reserves: Great Indian Bustard habitats to be declared as
conservation reserves.
● Project Great Indian Bustard launched by the Rajasthan government
Source:PIB

Disaster management
National Floodplains Zoning Policy
Syllabus :GS 3/Disaster management
In Context
● Flood Plain Zoning has been recognized as an effective non-structural measure for
flood management.
About Flood Plain Zoning
● It is a concept central to flood plain management. This concept recognises the basic
fact that the flood plain of a river is essentially its domain and any intrusion into
or developmental activity therein must recognise the river’s ‘right of way’.
● Flood-plain zoning measures aim at demarcating zones or areas likely to be
affected by floods of different magnitudes or frequencies and probability levels,
and specify the types of permissible developments in these zones, so that
whenever floods actually occur, the damage can be minimised, if not avoided.
● The Ministry of Jal Shakti has continuously impressed upon the States the need to
adopt flood plain zoning approach.
Other related initiatives
● A model draft bill for flood plain zoning legislation was also circulated by the
Union Government to all the States.
○ This bill envisages zoning of flood plain of a river according to flood
frequencies and defines the type of use of flood plain.
○ The states of Manipur, Rajasthan, Uttarakhand and erstwhile State of
Jammu & Kashmir had enacted the legislation. However, delineation and
demarcation of flood plains is yet to be undertaken.

Web: www.nextias.com 21 Mob.: 8081300200

 ● National Mission for Clean Ganga (NMCG) has also time to time advised all
states in Ganga basin for demarcation, delineation and notification of river flood
plains and removal of encroachment from river bed/floodplain of the river Ganga
and its tributaries in adherence to the River Ganga (Rejuvenation, Protection and
Management) Authorities Order, 2016.
Source:PIB

Science and Technology

Small Satellite Launch Vehicle (SSLV)
Syllabus: GS 3/ Space Technology
In News
● ISRO successfully completed the ground test of the solid-fuel based booster stage
(SS1) of its new Small Satellite Launch Vehicle (SSLV), completing the ground
testing of all three stages of the launch vehicle.
About Small Satellite Launch Vehicle

● SSLV:
○ The SSLV was designed to be smaller, cheaper, and quickly assembled for
commercial launches on demand.

○ The SSLV can place a 500 kg payload at a height of 500 km in the Low Earth
Orbit (LEO), compared to 1,750 kg carried by PSLV.

Web: www.nextias.com 22 Mob.: 8081300200

 ● Significance:
○ A cost-effective launch vehicle with high launch frequency and quick
turnaround capability.
○ Option of multiple satellite mounting options.
○ An innovative vehicle that can be assembled in just 72 hours. Instead of 60
days, SSLV will be assembled in three days; instead of 600 people, it will be
done by six people.
○ Unlike the PSLV and GSLV, the SSLV can be assembled both vertically
and horizontally.
○ The SSLV is intended to cater to a market for the launch of small satellites
into low earth orbits which has emerged in recent years on account of the
need for developing countries, private corporations, and universities for
small satellites.
● Issues:
○ There is a need for ISRO to create a separate launch pad for the SSLV so that
quick launches can keep happening.
○ Launch pad at Sriharikota can be used for the other ISRO missions. This
will also reduce the turnaround time for SSLV launches.
● Protocol
○ The space agency usually declares a launch vehicle operational after two
successful development flights.
● Additional Information
○ With the space sector being the domain of the government’s department of
space, India accounted for less than 2% of the global space market.
○ The aim is to increase the share to 9%.
Source: TH



Web: www.nextias.com 23 Mob.: 8081300200