Syllabus

• Prelims & Mains – POLITY

Context: Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch, summoned by Parliament’s Public Accounts Committee (PAC) as part of its review of financial regulators, skipped its meeting on Thursday, citing personal reasons.

Background: –

• PAC Chairman and Congress leader K.C. Venugopal adjourned the meeting after reading out a letter from Ms. Buch, received less than two hours before the meeting was due to begin, conveying her inability to appear before the committee.

Key takeaways

• The PAC is not a constitutional body; it was established in 1921 under the Government of India Act, 1919.
• Its formation and functions are governed by Parliamentary procedures and Rules of Business.

Composition:

• The committee has 22 members: 15 from the Lok Sabha and 7 from the Rajya Sabha.
• Members are elected annually from both houses by proportional representation to ensure representation of various political parties.
• The Chairperson is traditionally a member of the Opposition from the Lok Sabha.

Functions:

• Examines the annual audit reports of the Comptroller and Auditor General (CAG) submitted to Parliament.
• Reviews public expenditure to ensure it aligns with parliamentary grants and approvals.
• Investigates cases of wasteful expenditure, losses, and irregularities in government spending.
• Ensures that money is used efficiently, effectively, and economically.

Limitations:

• PAC cannot look into policy matters or day-to-day administration.
• It cannot investigate issues already under judicial scrutiny.
• The committee’s recommendations are not binding, though they hold significant moral and ethical value.

Source: The Hindu

 Syllabus

• Prelims – CURRENT EVENT

Context: National Pharmaceutical Pricing Authority of India (NPPA) increased the ceiling prices of eight drugs, comprising medication for common diseases including asthma, tuberculosis, bipolar disorder, and glaucoma, among others.

Background: –

• The Central Government passed the order, citing “extraordinary circumstances” and “public interest.”

Key takeaways

• The NPPA, constituted in 1997, regulates ceiling prices of drugs and has the power to fix costs under what is known as a ‘Drug Price Control Order’ (DPCO) issued by the government under the Essential Commodities Act.
• NPPA comes under the department of pharmaceuticals under the Union Ministry of Chemicals and Fertilizers.
• The NPPA approved an increase in ceiling prices of eleven scheduled formulations of eight drugs by 50% of their current ceiling prices, in the larger public interest. NPPA invoked extraordinary powers under Para 19 of the DPCO, 2013.
• Section 19 of the DPCO allows the government to revise the ceiling cost in extraordinary circumstances.
• Section 19 states: “Notwithstanding anything contained in this order, the Government may, in case of extraordinary circumstances, if it considers it necessary to do so in public interest, fix the ceiling price or retail price of any drug for such period, as it may deem fit and where the ceiling price or retail price of the drug is already fixed and notified, the government may allow an increase or decrease in the ceiling price or the retail price, as the case may be, irrespective of annual wholesale price index for that year.”
• Every financial year starting April 1, the NPPA increases ceiling prices of drugs based on Wholesale Price Index (WPI) of the preceding year.
• Pricing of drugs in India is strictly controlled by the Central government. Action is taken against companies found selling at higher prices.

Source: The Hindu

 Syllabus

• Prelims & Mains – ECONOMY

Context: The recent cascade of countries defaulting on their debt has brought back into vogue complex securities called State Contingent Debt Instruments.

Background: –

• State Contingent Debt Instruments has helped nations from Ukraine to Sri Lanka resolve difficult debt negotiations.

Key takeaways

• State Contingent Debt Instruments (SCDIs) are financial instruments whose repayment terms are linked to certain economic variables or outcomes, like GDP growth, commodity prices, or revenue collection.
• SCDIs differ from the bulk of sovereign bonds which pay a predetermined amount in interest before a final repayment.

Purpose:

• To provide fiscal flexibility to states by reducing debt servicing pressure during economic downturns.
• Helps manage debt burden effectively by aligning repayment with state revenue performance.

Mechanism:

• Unlike traditional fixed debt instruments, SCDIs allow variation in repayment based on the agreed-upon economic indicators.
• When a state faces a downturn, repayments may be reduced; conversely, in a strong economic period, repayments could increase.

Benefits:

• Counter-Cyclical Support: Helps states manage debt better during economic stress by lowering repayment obligations.
• Debt Sustainability: Reduces the likelihood of debt distress, aiding long-term fiscal health.
• Fiscal Stability: Supports better planning and stability by managing repayment according to economic performance.

Recent Example

• Ukraine used SCDIs as part of a package to convince investors in August to swap their defaulted bonds for newer instruments — including a GDP-linked bond, which would pay investors more if the economy grows faster than anticipated.

Source: The Hindu

 Syllabus

• Prelims & Mains – CURRENT EVENT

Context: A new study has argued that spraying millions of tonnes of diamond dust in the Earth’s upper atmosphere every year could help cool down the Earth and combat global warming.

Background:

• Previously, several other compounds, such as sulphur, calcium, aluminium, and silicon, have been suggested. The idea here is to scatter material that can reflect solar radiation into Space and prevent it from reaching Earth. Such solutions, called geo-engineering (more specifically solar radiation management), have been under study for quite some time.

Key takeaways

• Geo engineering refers to any large-scale attempt to alter the Earth’s natural climate system to counter the adverse impacts of global warming.
• Solar Radiation Management (SRM), in which materials are deployed in Space to reflect incoming solar rays and prevent them from reaching Earth, is one of the two broad geoengineering options being explored.
• Then there are Carbon Dioxide Removal (CDR) technologies, which include Carbon Capture and Sequestration (CCS).
• The only method being tried out in practice is CCS. Carbon dioxide emitted, from industry or power plants, is “captured” at source and deposited deep below the Earth’s surface in suitable geological formations for long-term storage. Since carbon dioxide is not released into the atmosphere, overall emissions are reduced.
• Another option involves the captured carbon being used as an input for other industrial processes (known as Carbon Capture and Utilisation or CCU). In Carbon Capture, Utilisation and Storage (CCUS), some carbon dioxide is utilised and the rest is stored underground.
• Under Direct Air Capture (DAC) methods, carbon dioxide is sucked out through large “artificial trees” from ambient air and directed towards storage sites or utilisation. Since these methods can potentially eliminate carbon dioxide accumulated over the years, the benefits are larger compared to CCS.
• The most ambitious and potentially rewarding form of geoengineering is SRM, which is still at the conceptual stage. It draws inspiration from the natural process of volcanic eruptions, in which large amounts of sulphur dioxide are released. These combine with water vapour to form sulphate particles that reflect sunlight into space, reducing the amount reaching Earth.
• The Mount Pinatubo eruptions in the Philippines in 1991, one of the largest in the 20th century, are believed to have reduced the Earth’s temperature by 0.5 degrees Celsius that year.

Source: Indian Express

 Syllabus

• Prelims – ENVIRONMENT

Context: At the 16th Conference of Parties (COP16) of the Convention on Biological Diversity (CBD), new data was released which shows that the world’s best and most important ecosystems are facing threat from extractive industries. These include key biodiversity areas (KBAs), high-integrity forest landscapes, protected areas, and Indigenous territories.

Background: –

• Maps included in a report titled “Closing Window of Opportunity: Mapping Threats from Oil, Gas and Mining to Important Areas for Conservation in the Pantropics” show that extraction is being carried out for oil, gas, and mining in important areas for conservation across the Amazon Basin, Congo Basin, and Southeast Asia.

About Key Biodiversity Areas (KBA)

• Key Biodiversity Areas (KBA) are geographical regions that have been determined to be of international importance in terms of biodiversity conservation, using globally standardized criteria published by the IUCN as part of a collaboration between scientists, conservation groups, and government bodies across the world.
• The purpose of Key Biodiversity Areas is to identify regions that are in need of protection by governments or other agencies.
• KBAs extend the Important Bird Area (IBA) concept to other taxonomic groups and are now being identified in many parts of the world. Examples of types of KBAs include Important Plant Areas (IPAs), Ecologically and Biologically Significant Areas (EBSAs) in the High Seas, Alliance for Zero Extinction (AZE) sites, Prime Butterfly Areas, Important Mammal Areas and Important Sites for Freshwater Biodiversity, with prototype criteria developed for freshwater molluscs and fish and for marine systems.
• The Global Standard for the Identification of Key Biodiversity Areas (IUCN 2016) sets out globally agreed criteria for the identification of KBAs worldwide.
• Sites qualify as global KBAs if they meet one or more of 11 criteria, clustered into five higher level categories: threatened biodiversity, geographically restricted biodiversity, ecological integrity, biological processes, and irreplaceability.
• The KBA criteria can be applied to species and ecosystems in terrestrial, inland water, and marine environments, and may be applied across all taxonomic groups (other than micro-organisms).

Source: Down To Earth

 Syllabus

• Mains – GS 3

Context: Three Bangladeshi nationals have been apprehended in two days while trying to enter Indian territory by negotiating the border fence, the Border Security Force (BSF) said.

Background: –

• The BSF has stepped up vigilance along the border in Tripura.

Illegal Immigration is a Threat to Internal Security:

• It is alleged that among the illegal migrants there are also militants especially groups such as NSCN/KUFLA, who enter India to carry out terrorist activities.
• In recent decades, trafficking of women and human smuggling has become quite rampant across borders.
• The Commission on Integration and Cohesion found that tension usually exists with the presence of high levels of migration combined with other forms of social exclusion like poverty, poor housing, etc.
• Immigration has increased pressure on the part of the government, as the government has to increase the expenditure on education and health facilities for the immigrants.
• Most illegal immigrants have their names enlisted in the voting list illegally, thereby claiming themselves as citizens of the state.
• The influx of immigrants created a crisis of identity among the indigenous people of the region.
• Large areas of forestland were encroached upon by the immigrants for settlement and cultivation. This creates conflict in resource utilization with the local communities.

Laws in India to tackle Illegal Migration:

• Under the Foreigners Act of 1946, the central government can deport illegal foreign nationals.
• Under the Passport (Entry into India) Act of 1920, the state governments have been entrusted to remove an illegal foreigner by force.
• The Citizenship Act of 1955 provides for the acquisition and determination of Indian citizenship.

Way Forward:

• A considerable portion of the problem of illegal immigration lies in the fact that we have no such effective refugee policy. The central government should frame a holistic refugee policy.
• India has to make a diplomatic effort to get neighboring countries to cooperate as illegal migration cannot be solved unless the origin country cooperates.
• The government should introduce identity cards for the borderland people who frequently used to cross borders for different reasons.
• There is a vast area of the border that is not protected by fencing. The central government should complete the border fencing.
• Regional forums like BIMSTEC can be used to discuss issues like illegal migration from neighboring countries and garner support and coordination from the members.
• Border guards like BSF and ITBP should be strengthened and a second line of defence can be created by the State government through the state police force.

Source: Business Standard

Q1.) Which of the following statements regarding State Contingent Debt Instruments (SCDIs) is correct?

A) They are debt instruments with fixed repayment terms irrespective of economic performance.
B) SCDIs help states reduce repayment obligations during economic downturns by linking repayment to economic indicators.
C) SCDIs are exclusively issued by the international financial institutions to manage debt obligations with states.
D) SCDIs are always risk free.

Q2.) Which of the following statements about Key Biodiversity Areas (KBAs) is correct?

A) KBAs are legally protected areas designated by the United Nations.
B) KBAs are identified solely based on the economic value of biodiversity.
C) KBAs are areas of high biodiversity significance identified based on scientific criteria, such as the presence of threatened species and unique ecosystems.
D) KBAs only focus on protecting bird species and ignore other forms of biodiversity.

Q3.) Which of the following statements about the Public Accounts Committee (PAC) is correct?

A) It is a constitutional body established under Article 148 of the Indian Constitution.
B) The Chairperson of the PAC is traditionally a member of the ruling party in Lok Sabha.
C) The PAC can examine issues of public expenditure and ensure it aligns with parliamentary grants.
D) PAC recommendations are binding on the government.

Comment the answers to the above questions in the comment section below!!

ANSWERS FOR ’  25th October 2024 – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs

Q.1) –  b

Q.2) – c

Q.3) – b