GS Analyst: Daily Current Affairs

The increasing urbanization in India has put a spotlight on the country's infrastructure needs. In light of this emerging issue, the AMRUT (Atal Mission for Rejuvenation and Urban Transformation) scheme, along with its more ambitious version, AMRUT 2.0, has been a topic of significant discussion and analysis.

Urbanization in India

• Currently, 36% of India's population lives in cities, a figure expected to exceed 50% by 2047.
• The World Bank estimates that USD 840 billion is needed over the next 15 years to fund essential urban infrastructure.

Introduction to the AMRUT Scheme

• The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) was launched by the Indian government in June 2015, with a second version (AMRUT 2.0) introduced on October 1, 2021.
• Goals of AMRUT
  • Water Supply and Sewerage: Ensure every household has a tap with a reliable water supply and a sewerage connection.
  • Urban Greenery: Develop parks and open spaces.
  • Pollution Reduction: Promote public transport and non-motorized transport facilities.
• AMRUT 2.0: AMRUT 2.0 aims to make cities ‘water secure’ and provide functional water tap connections to all households. It targets 100% sewage management in 500 cities, with a total outlay of Rs 2,99,000 crore over five years, including ?76,760 crore from the Central government.
• Progress so far (Utilization of Funds): As of May 19, 2024, USD 83,357 crore has been spent under the AMRUT scheme. Achievements include:
  • 58,66,237 tap connections.
  • 37,49,467 sewerage connections.
  • Development of 2,411 parks.
  • Installation of 62,78,571 LED lights.

Challenges of Urban Infrastructure

Despite efforts, significant challenges remain:

• Inadequate water, sanitation, and hygiene cause about 200,000 deaths annually.
• India's disease burden from unsafe water and sanitation is 40 times higher than China's.
• Many reservoirs are only 40% full, and 21 major cities are at risk of running out of groundwater.
• A NITI Aayog report predicts 40% of India's population will lack drinking water by 2030.
• 31% of urban households lack piped water, and 67.3% are not connected to sewerage systems.
• The average urban water supply is 69.25 liters per person per day, far below the required 135 liters.
• Air quality in AMRUT cities continues to deteriorate. The National Clean Air Programme was launched in 2019 to address this, as AMRUT 2.0 focuses primarily on water and sewerage.

Issues with AMRUT

• Project-Oriented Approach: The scheme lacked a holistic view, focusing narrowly on projects.
• Lack of City Participation: Cities were not actively involved in the scheme’s design or implementation.
• Bureaucratic and Private Dominance: Managed by bureaucrats and private companies, with minimal input from elected city officials.
• Ineffective Water Management: Failed to consider local climate and infrastructure, resulting in inefficient sewage treatment systems.
• Real Estate Focus: Urban planning was overshadowed by real estate development, leading to the disappearance of water bodies and poor storm water management.

Delays in settling health insurance claims by insurance companies or third-party administrators (TPAs) have often caused significant stress for patients and their families. To address these issues, the Insurance Regulatory and Development Authority of India (IRDAI) has introduced new rules to streamline the health insurance claim process.

The Need for New Rules

• Policyholders have frequently faced long waiting times for their health insurance claims to be processed, even when pre-approval was already given before hospital admission.
• This delay not only causes inconvenience but also imposes extra financial burdens on patients who have to pay for additional nights in the hospital due to claim processing delays.
• These issues highlight the need for a more efficient and timely claim settlement process.

About the New Rules

• Time Limit for Approving Cashless Claims: IRDAI has mandated that insurers must grant final authorisation within three hours of receiving the discharge request from the hospital. If there is any delay beyond three hours, the additional amount charged by the hospital will be borne by the insurer from the shareholder’s fund.
• Immediate Processing in Case of Death: In the event of a policyholder’s death during treatment, the insurer is required to:
• Immediately process the claim settlement request.
• Ensure the immediate release of the mortal remains (dead body) from the hospital.
• Striving for 100% Cashless Claims: IRDAI has directed insurers to achieve 100% cashless claim settlement in a timely manner.
• Digital Pre-Authorisation Process: Insurers must provide a pre-authorisation process through digital means.

India is poised to begin wheat imports after a six-year gap, to replenish depleted reserves and hold down prices that leaped following three years of disappointing crops.

Key Highlights

• Import Tax: New Delhi is expected to lift a 40% tax on wheat imports, allowing private traders and flour millers to purchase from producers like Russia.
• Timing: The government is likely to wait until after June, once the new wheat harvest is in, before removing the import tax.

Need for Imports

• Declining Harvests: After five consecutive record harvests, high temperatures severely reduced India's wheat crop in 2022 and 2023.
• Current Crop Forecast: This year's crop is expected to be 6.25% lower than the government estimate of 112 million metric tons.
• Rising Prices: Domestic wheat prices have remained above the state-set minimum purchase rate of 2,275 rupees per 100 kg and have recently started increasing.
• Depleted Stocks: Wheat stocks in state warehouses dropped to 7.5 million metric tons in April, the lowest in 16 years, after the government sold over 10 million tons to control prices.

Procurement Process

• Purpose: The government procures food grains (rice, wheat, and coarse grains) to ensure farmers receive the minimum support price (MSP) and to maintain stocks for distribution to the poor under the public distribution system (PDS) and other schemes.
• Agencies Involved: The Food Corporation of India (FCI) and state government agencies (SGAs) handle wheat procurement.
• Procurement Systems:
  • Centralised Procurement: FCI or SGAs directly procure food grains for the Central Pool, which are used for welfare schemes and calamity relief.
  • Decentralised Procurement: Managed by the respective states.
• MSP Declaration: The government announces the MSP before sowing based on the Commission for Agricultural Cost and Prices (CACP) MSPs apply to 23 farm commodities, including wheat and rice, but there is no statutory backing mandating their implementation.

The Union government has announced an expansion of the “deep-vetting” process for government job aspirants in Jammu and Kashmir. This new policy aims to ensure that no relatives of militants or stone-pelters get government jobs in the Union Territory. This move is expected to affect over 50,000 families and has been criticized by regional parties for potentially alienating Kashmiri youth.

The Need for New Rules

• The policy change comes in response to concerns about the security implications of hiring individuals with potential ties to militancy.
• The traditional process only verified the credentials of the job aspirant.
• However, the expanded vetting will include background checks on immediate and close relatives on both the maternal and paternal sides to identify any connections to militant activities or stone-pelting incidents.

Details of the New Rules

• Expanded Background Checks: Security agencies will perform thorough checks on the families of job aspirants, including immediate and close relatives.
• Target Group: The focus is on ensuring no relatives of militants or stone-pelters are employed in government positions.
• Past Rehabilitation Policies: This policy overturns previous government efforts to rehabilitate former militants, which included:
  • Monetary Incentives: Cash deposits and monthly stipends were provided to surrendered militants under policies from 1995, 2004, and 2010.
  • Rehabilitation for Exfiltrated Individuals: A policy for Kashmiris who had exfiltrated to Pakistan Occupied Kashmir for arms training allowed them to return and reintegrate.

Impact of the move

• The Government has a policy of zero tolerance against terrorism. The expanded vetting policy for government jobs in Jammu and Kashmir is a significant shift aimed at enhancing security.
• However, it has sparked a debate about its potential consequences on the region’s youth and their integration into mainstream society.
• In Jammu & Kashmir, the increase in terror activities, is a major concern.

Gopi Thotakura, an entrepreneur and pilot, became the first Indian space tourist on Blue Origin's NS-25 mission, led by Jeff Bezos. He's the first Indian citizen to experience space tourism, but officially the second Indian astronaut after Wing Commander Rakesh Sharma in 1984.

What is Space Travel?

• Space travel starts around 100 km above Earth's surface, crossing the Karman line, which marks the boundary between Earth's atmosphere and outer space.
• Anything flying below this line is considered an aircraft, while anything crossing it is a

Private Space Tourism:

• Private space tourism became active in 2021 with companies like Virgin Galactic, Blue Origin, and SpaceX offering missions.
• These missions opened space tourism to anyone willing to pay.
• Different missions require different levels of training. Sub-orbital flights, like Thotakura's, require minimal training usually included in the ticket price.
• Accessibility: Space tourism is currently only affordable for the super-rich.
• Some more affordable options, like high-altitude balloon rides, are emerging. These take passengers up to 100,000 feet for about $50,000. While they don't offer weightlessness, passengers can see the curvature of the Earth.

India has successfully test-fired the Rudram-II anti-radiation supersonic missile from a Su-30MKI fighter jet.

About Rudram-II Missile:

• Developed by: Defence Research and Development Organisation (DRDO).
• The Rudram missile is India's first indigenously developed anti-radiation missile.
• It is designed to target enemy ground radars and communication stations as part of Suppression of Enemy Air Defence (SEAD) missions.
• Advanced Version: The Rudram-II is the latest version, following the Rudram-I which was tested four years ago.
• Range and Speed: The Rudram-II can pick up enemy radio frequencies and signals from radars over a range of more than 100 km. It features a Lock-On-Before/After-Launch system, and its internal guidance system allows it to direct itself towards the target post-launch.
• Altitude Versatility: The missile can be launched from various altitudes, making it highly adaptable in different combat scenarios.

Researchers have developed a new tool that can detect viral infections in cells using only light and basic physics. This tool identifies if cells are infected by observing how light is distorted when it passes through them.

How does it work?

• When a cell is infected by a virus, it undergoes changes in shape, size, and features. The researchers infected pig testicle cells with pseudorabies virus, shone light through them, and recorded how the light was distorted.
• They compared these patterns to those from healthy cells, finding distinct ‘fingerprints’ of infection.
• The tool uses diffraction patterns, which occur when light waves spread out after passing through narrow openings or around small objects.
• The researchers analyzed the contrast between light and dark stripes in these patterns, and a mathematical value called the inverse differential moment, to differentiate between uninfected, infected, and dead cells.

Significance

• The method detects viral infections in about two hours and costs about a tenth of the standard method. This makes it more accessible and reduces dependency on chemical reagents and supply chains.
• During outbreaks like bird flu, which killed over 131 million poultry in 2022 and 2023, quick detection is crucial.
• Current methods (PCR and antigen tests) are specific to certain viruses, but the new method can detect viral infections in general, allowing for timely preventive measures.

IIT Bombay and Tata Consultancy Services (TCS) have joined hands to pioneer India's inaugural Quantum Diamond Microchip Imager. This cutting-edge sensing tool is anticipated to revolutionize semiconductor chip examination, mitigate chip failures, and enhance the energy efficiency of electronic devices.

About

• The Quantum Diamond Microchip Imager utilizes defects in a diamond's structure, known as Nitrogen-Vacancy (NV) centers, to non-invasively map semiconductor chip anomalies, akin to MRI in healthcare.
• It boasts advanced diagnostic capabilities, including identifying chip defects such as current leakages and visualizing three-dimensional charge flow in multi-layer chips.
• Semiconductor chips underpin modern electronic devices, endowing them with intelligence and efficiency, and are vital across diverse sectors like communications, computing, healthcare, military systems, transportation, and clean energy.
• National Quantum Mission Alignment: The partnership resonates with the National Quantum Mission, positioning India as a global quantum technology frontrunner.

Wide Applications

• Beyond semiconductor imaging, the imager holds promise for microelectronics, biological and geological imaging, and fine-scale magnetic field imaging.
• The collaboration builds upon TCS and IIT Bombay's longstanding partnership, fostering joint research, educational programs, and industry-academia collaboration since the 1990s.

A recent court ruling in the Philippines has garnered international attention for its implications on the commercial propagation of genetically modified (GM) golden rice and Bt eggplant.

About

• Golden rice, named for its vibrant yellow hue, was developed to address micronutrient deficiencies by enhancing levels of iron, zinc, and beta-carotene, a precursor to vitamin A.
• In 2021, the Philippines became the first nation to approve the commercial production of golden rice.
• Proponents of GM crops argue that the decision could have detrimental effects on children suffering from vitamin A deficiency.
• Global Impact of Vitamin A Deficiency
  • Vitamin A deficiency is a condition classified as a public health problem by the World Health Organization.
  • It affects approximately one-third of children aged 6 to 59 months globally, with the highest prevalence observed in sub-Saharan Africa (48%) and South Asia (44%).

The editorial discusses India's scientific progress and the need for open access to scientific literature to bolster self-reliance in research and development. It highlights the significance of equitable access to resources and the challenges posed by the current academic publishing landscape.

The State of Scientific Research in India:

1. India’s Scientific Progress: India has made significant strides in scientific research, ranking third globally in research output and eleventh in quality according to the Nature Index. However, the ease of doing science in India is hampered by a lack of robust infrastructure and resources.
2. Growth of Universities: The number of universities in India increased from 760 in 2014 to 1,113 in 2021. Despite this growth, many universities lack essential resources such as instrumental access, sophisticated labs, and access to scientific literature.
3. I-STEM Initiative: The I-STEM initiative aims to bridge the resource gap by cataloguing all publicly funded research facilities nationwide and making them available to researchers based on need.

The Issue of Access to Scientific Literature:

1. One Nation, One Subscription (ONOS): The ONOS proposal aims to make scientific journals universally available to all publicly funded institutions in India. However, the cost of accessing these commercial journals is high, with Indian institutions spending an estimated ?1,500 crore annually.
2. Limited Reach of Subscription: The benefits of this expenditure are reaped by only a few top institutes, leaving many others without access to crucial scientific literature.
3. Negotiations with Publishers: The government is currently negotiating with five major commercial publishers who dominate the market to implement ONOS.

Open Access and its Implications:

1. Shift Towards Open Access (OA): A significant portion of scholarly articles is now available via OA, which provides free online access to articles. The fraction of OA publications globally increased from 38% in 2018 to 50% in 2022.
2. International Push for OA: Major countries like the U.S. and the European Union, as well as philanthropic funding sources such as the Wellcome Trust, have mandated OA for the research they fund.
3. Questioning the Need for ONOS: Given the increasing availability of free content, the necessity and efficiency of paying for a unified, costly subscription like ONOS is being questioned.

Challenges and Solutions:

1. Long-term Preservation of Content: A recent study found that approximately 28% of academic journal articles with DOIs appear entirely unpreserved, suggesting a risk of these research papers vanishing from the Internet.
2. Green Open Access: This practice allows authors to deposit a version of their work in a university repository, making it freely accessible to everyone globally. Indian funding agencies have mandated green OA for a long time, but enforcement has been lacking.
3. Self-reliance in Scientific Publishing: To become self-reliant, India needs to improve its own journal system, with no burden of payment to authors or readers. With its capabilities in digital technology, India should also become a pioneer for the global south by creating and sharing digital public infrastructure for low-cost, high-quality scientific publishing.

UPSC Mains Questions:

Q. Critically analyze the 'One Nation, One Subscription' (ONOS) proposal in the context of increasing Open Access (OA) publications. What are the potential benefits and drawbacks of implementing ONOS in India?

The Reserve Bank of India (RBI) has introduced a mobile app for its Retail Direct facility, enabling retail investors to buy and trade government securities (G-Secs) directly. This initiative, launched in 2021, aims to broaden the investor base for sovereign bonds and offer a secure investment alternative to the public.

RBI’s Retail Direct Facility:

1. Introduction to the Initiative: The RBI has launched a mobile app for its Retail Direct facility, enabling retail investors to participate in India’s primary and secondary bond markets. This initiative, launched in 2021, aims to diversify the pool of creditors and offer government securities (G-Secs) as an alternative investment avenue.
2. Benefits of the Initiative: The RBI platform grants access to central paper, treasury bills, state government bonds, and sovereign gold bonds. This should attract investors seeking risk-free investments for their long-horizon investment portfolios. Savvy investors could even seek capital gains by riding interest-rate cycles.
3. Current State of the Initiative: Despite its potential benefits, the Retail Direct facility has not gained much traction among investors. As of 27 May 2024, the platform had only 138,819 registrations, with just 124,951 accounts opened.

Challenges Faced by Investors:

1. Unfamiliarity with G-Secs: Unlike corporate stocks, multiple series of G-Secs are listed on the platform at various prices, with differing coupon rates of interest for the same maturity year. This unfamiliarity with G-Secs and their complexity can deter potential investors.
2. Understanding Bond Yields: The return on investment for G-Secs depends on the bond’s ‘yield’, which changes as the security’s price varies over the length of its tenor by market demand and supply. This complexity can be a drawback for investors new to the bond market.
3. User-Unfriendly Interface: The RBI app, while rich in data, is laden with jargon and not user-friendly. This can make it difficult for lay investors to navigate the bond market.

Suggested Improvements:

1. Demystifying the Bond Market: The RBI should make a greater effort to demystify the bond market for lay investors. This could involve redesigning its app to be more user-friendly and providing explanations for each variable in simple language.
2. Improving the App Interface: The app’s tabulated displays could offer hyperlinks that explain each variable in simple language, making it easier for users to understand the information presented.
3. Providing Tax Incentives: Offering tax incentives for debt holdings could help attract wider interest in the bond market.

UPSC Mains Questions:

Q. Evaluate the importance of government securities (G-Secs) as a safe investment option for retail investors. What steps can the RBI take to simplify and popularize this investment avenue?

The debate over the efficacy of a mandated minimum wage explores its impact on the poorest and least skilled workers. This editorial examines the unintended consequences of minimum wage policies, particularly how they might harm the very people they are designed to protect.

The Controversy Surrounding Minimum Wage:

1. Introduction to the Issue: The concept of a mandated minimum wage has sparked controversy, particularly in the context of its potential impact on employment and worker protection.
2. Impact on Employment: The editorial argues that a high minimum wage could lead to job losses, particularly among less skilled and less advantaged workers. This is because employers may not be willing or able to pay the mandated wage, leading to reduced hiring or even layoffs.
3. Theoretical and Empirical Evidence: Various studies and reviews have found consistent evidence of negative employment effects of minimum wages, particularly among the least-skilled groups. This is supported by evidence from randomized control trials and macro trends.

Global Trends and Policy Implications:

1. Comparison with China: The editorial compares India’s progress in shifting its workforce from agriculture to manufacturing and services with that of China. It argues that India’s labour laws, which mandate minimum wages higher than market wages, have been a significant reason for the slower transition in India.
2. Impact on Women’s Employment: The editorial highlights the impact of these policies on women’s employment, arguing that they have contributed to keeping women at home or in the fields, rather than employed in factories.
3. Need for Policy Change: The editorial argues for a shift in policy focus from limiting worker choice through wage regulation to maximizing worker choice through increased competition for their time and effort.

Suggested Improvements:

1. Alternative for Worker Protection: The editorial suggests an alternative for worker protection that requires no government intervention - ‘having a better option’. This involves creating as much competition as possible for workers’ time and effort, which would force employers to offer competitive wages.
2. Maximizing Worker Choice: The editorial argues that the best way to protect workers is to maximize their choice, rather than limiting it through wage regulation. This approach has been adopted by every country that has made the transition from poor to middle income or rich status.
3. Need for Realization: The editorial concludes by emphasizing the need for India to realize that maximizing worker choice is the right policy option, not limiting it. This realization is crucial for Indians to transition to a standard of living that’s at par with the world’s best.

UPSC Mains Questions:

Q. Evaluate the role of flexible labor markets in economic growth and employment generation. How can India reform its labor laws to replicate the success seen in countries like China and Bangladesh?