8 Aug | UPSC Current Affairs: Sone River, Auroville, Boilers Bill, Yen Carry Trade, AMCs, Repo Rate & More

UPSC GS 1

Sone River

• News: The National Disaster Response Force (NDRF) recently rescued 26 villagers stranded in flood waters of Sone River in Jharkhand’s Garhwa district. 
• About the Sone River
  • • The Sone River is a significant southern tributary of the Ganges (Ganga) River, following the Yamuna River.
    •  It plays a vital role in the river system of northern India.
• Course
  • • Origin: The Sone River originates from the Amarkantak highlands in Madhya Pradesh, situated east of the Narmada River’s source.
    • Flow: It initially flows in a north-northwest direction through Madhya Pradesh, then turns eastward as it approaches the Kaimur Range. The river continues in an east-northeast direction through Uttar Pradesh and Bihar before joining the Ganges just above Patna, the capital of Bihar.
    • Length: The total length of the Sone River is 784 kilometers.
• Characteristics
  • • Width and Depth: The river is wide and shallow, forming pools of water in some areas.
    • Floodplain: The floodplain of the Sone River is narrow, ranging from 3 to 5 kilometers in width.
    • Flow: The river’s flow is seasonal, and it is not significant for navigation.
• Valley and Geography
  • • Geology: The Sone Valley is almost a continuation of the Narmada River valley to the southwest. It is characterized by its forested and sparsely populated terrain.
    • Borders: The valley is bordered by the Kaimur Range to the north and the Chota Nagpur plateau to the south.
• Tributaries: The main tributaries of the Sone River include:
  • • Rihand River
    • Koel River
    • Other tributaries are:
    • Gopad River
    • Kanhar River
    • Major Town
• Dehri: Dehri is the major town situated along the Sone River.

Auroville

• News: The Union Government has referred a range of complaints, including dubious land exchanges, encroachment, cybercrime and money laundering in Auroville to the appropriate agencies. 
• About Auroville
  • • Auroville, an international cultural township, was established by Mirra Alfassa, known as ‘the Mother’, who was the spiritual collaborator of Sri Aurobindo. 
    • The township was officially founded on February 28, 1968.

• Status and Location
  • • Auroville holds the distinction of being the largest and oldest surviving international intentional community in the world. 
    • It is located on the outskirts of Puducherry, within the Villupuram District of Tamil Nadu, India.
• Community and Activities
  • • Auroville is home to approximately 3,300 residents from 58 nations, including India. 
    • The community engages in a variety of cultural, educational, and scientific activities with the goal of fostering human unity. 
    • Over time, it has transformed from a barren desert into a thriving 3,000-acre township and bioregion, where more than 3 million trees have been planted. 
    • The township is known for its rich biodiversity, nine schools, and multiple social enterprises.
• UNESCO Endorsement
  • • The project of Auroville received endorsement from UNESCO through four resolutions passed in 1966, 1968, 1970, and 1983.
• Administration
  • • Since 1980, Auroville has been under the administrative control of the Ministry of Education of India.
    •  It operates in accordance with the Auroville Foundation Act, 1988, which was enacted by the Parliament of India. 
    • The Act provides for partial funding from the Government of India in the form of grants to support the establishment, maintenance, and development of Auroville.

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UPSC GS 2

QCI Surajya Recognition & Ranking Framework

• News: Quality Council of India has recently introduced QCI Surajya Recognition & Ranking Framework to drive excellence in key sectors.
• About QCI Surajya Recognition & Ranking Framework
  • • It is an initiative aimed at fostering excellence among states and organizations to enhance the quality of life for citizens, contributing to the vision of a “Viksit Bharat” (Developed India). 
    • The QCI Surajya Recognition & Ranking Framework, beginning with the August 2024 rankings, sets a new benchmark for excellence across the nation. 
    • The framework seeks to recognize and reward achievements in quality and innovation across various sectors.
• Key Pillars of the Framework: The framework is structured around four key pillars:
  • • Shiksha (Education)
    • Swasthya (Health)
    • Samriddhi (Prosperity)
    • Sushasan (Governance)
    • Surajya Recognition
    • The Surajya Recognition acknowledges the outstanding performance and commitment to quality by states and organisations in these vital areas.

• Focus and Rankings
  • • Shiksha (Education): 
      • Uttar Pradesh leads with the highest number of accreditations, assessments, and ratings in the education sector. 
      • Delhi, as a union territory, also ranks prominently.
    • Swasthya (Health): 
      • Chhattisgarh, Karnataka, Kerala, Rajasthan, Mizoram, and Manipur are notable for achieving full certification in the Ayushman Arogya Yojana (NABH).
      •  Tamil Nadu and Maharashtra lead in the Medical Entry Level Testing Labs (MELT) rankings (NABL). 
      • Among union territories, Chandigarh has achieved 100% certification in Ayushman Arogya Yojana, and Jammu & Kashmir has a commendable 71.43% certification rate. 
      • Delhi and Jammu & Kashmir excel in MELT.
    • Samriddhi (Prosperity): 
      • Gujarat, Karnataka, and Rajasthan lead with the highest number of ZED (Zero Defect Zero Effect) certifications, especially in the Micro category.
      •  Jammu & Kashmir and Delhi have also achieved significant ZED certifications. In the MSME Competitive LEAN Scheme, Maharashtra and Bihar are top performers.
• Future Editions:
  • • Future editions of the rankings will include the Sushasan (Governance) pillar, further expanding the framework’s scope.
• Quality Council Of India:
  • • It is an autonomous body set up by the Ministry of Commerce and Industry.
    • QCI was set up through a PPP model as an independent autonomous organization with the support of Government of India and the Indian Industry represented by the three premier industry associations, (i) Associated Chambers of Commerce and Industry of India (ASSOCHAM), (ii) Confederation of Indian Industry (CII) and (iii) Federation of Indian Chambers of Commerce and Industry (FICCI).
    • Mr Ratan Tata was its first Chairman.
    • The Department of Industrial Policy and Promotion, Ministry of Commerce and Industry is designated as the nodal point for all matters connected with QCI.

Boilers Bill 2024

• News: The Boilers Bill, 2024 was introduced in Rajya Sabha recently to replace the century-old Boilers Act, 1923.
• Aim: 
  • • The new bill will replace a 100-year-old law.
    • The bill aims to improve trust by decriminalising 3 out of 7 offences.
    • It shall also ensure speedy redressal for all non-criminal offences to enhance Ease of Doing Business and prioritise safety of workers.
    • Specific provisions have been made in the Bill to ensure the safety of persons working inside a boiler. 

• Major Provisions of the Boilers Bill, 2024
  • • Enumeration of Functions and Powers: The Bill details the functions and powers of the Central Government, State Governments, and the Central Boilers Board. This clarification aims to prevent any confusion and ensure clear delineation of responsibilities.
    • Decriminalization of Offenses: Out of the seven offenses covered, three have been decriminalized. These non-criminal offenses will now be addressed through fiscal penalties imposed by an executive mechanism, rather than through judicial proceedings.
    • Retention of Major Offenses: Criminal penalties have been retained for four major offenses that could potentially result in loss of life or significant property damage. This measure is intended to uphold safety standards.
    • Specific Safety Provisions: The Bill includes specific provisions to enhance safety for individuals working with boilers. It mandates that repairs and maintenance be conducted by qualified and competent personnel to ensure proper handling and reduce risks.

UPSC GS 3

Yen Carry Trade

• News: Global stock and bond markets, in particular Japan’s, are being rocked by an unwinding of the hugely popular yen carry trade.
• About Yen Carry Trade: 
  • • A carry trade is a financial strategy that involves borrowing funds at a low-interest rate and investing them in assets that offer a higher rate of return. 
    • This strategy often involves borrowing in a currency with low interest rates and converting the borrowed amount into another currency with higher returns.
• Yen Carry Trade
  • • The Japanese yen is a popular currency for carry trades due to Japan’s prolonged low-interest rate environment. 
• How it Works?
  • • Borrowing: Investors, including retail Japanese investors, borrow money in yen, which has a low-interest rate.
    • Investment: They then convert the borrowed yen into another currency or invest in assets such as stocks, commodities, bonds, or real estate denominated in that currency, which offers higher returns.

• Reasons for Popularity
  • • Zero-Interest Rate Policy: Japan has maintained a zero-interest rate policy for over two decades to stimulate economic activity. This makes borrowing in yen particularly attractive.
    • Investment Opportunities: Investors use the low-cost yen to invest in countries with higher interest rates or better investment opportunities. For example, they might invest in countries like Brazil, Mexico, India, or even the US to earn better returns.
• Strategy Objective
  • • The main goal of a yen carry trade is to profit from the difference between the low borrowing costs in yen and the higher returns from investments in other currencies or assets. 
    • This strategy can be advantageous in a stable or rising interest rate environment where the investor can lock in higher returns while paying minimal interest on the borrowed funds.

Asset Management Companies (AMCs)

• News:  SEBI has  issued a circular recently amending the Mutual Funds Regulations, requiring AMCs to establish an institutional mechanism
• Definition: An asset management company (AMC) is a firm that invests funds collected from clients into a range of investment vehicles, including stocks, bonds, real estate, and other assets.
• Investment Structures: AMCs create pooled investment structures such as mutual funds, index funds, or exchange-traded funds (ETFs), managing these as single portfolios.
• Alternate Names: AMCs are often referred to as money managers or money management firms. When they offer mutual funds or ETFs to the public, they may also be known as investment companies or mutual fund companies.
• Regulation: In India, AMCs are regulated by the Securities and Exchange Board of India (SEBI), which oversees and controls their operations.
• How Size of AMCs is Calculated? 
  • • Assets Under Management (AUM): The performance and size of AMCs are typically measured by their assets under management (AUM), which represents the total value of assets they manage on behalf of their clients.

• Role and Function of an AMC
  • • Investment Management: AMCs manage and optimize investment portfolios to achieve specific goals. They conduct market analysis and utilize their expertise to make informed investment decisions.
    • Diversification: By pooling funds from various investors, AMCs can spread investments across a broad range of assets. This diversification helps in mitigating risk, as the performance is not dependent on a single investment.
    • Access to a Wide Range of Investments: AMCs provide individual investors with access to diverse investment options that might require substantial capital, making them otherwise inaccessible.
    • Administration and Record-Keeping: AMCs handle administrative tasks, including record-keeping, reporting, and regulatory compliance, simplifying the investment process for their clients.

Repo Rate

• News: The RBI Governor Shaktikanta Das-headed six-member Monetary Policy Committee (MPC) kept the benchmark repo rate unchanged at 6.5% for the eight consecutive time. 
• More on News: The standing deposit facility (SDF) rate remains at 6.25 %, while the marginal standing facility (MSF) rate and the bank rate remain at 6.75 %. 
• Repo Rate: The interest rate that the RBI charges when commercial banks borrow money from it is called the repo rate. 
• Reverse Repo Rate: The interest rate that the RBI pays commercial banks when they park their excess cash with the central bank is called the reverse repo rate. 
• Standing Deposit Facility (SDF): The SDF is a liquidity window through which the RBI will give banks an option to park excess liquidity with it. It is different from the reverse repo facility in that it does not require banks to provide collateral while parking funds. 
• Marginal standing facility (MSF): MSF is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely.
• Impact of Repo Rate on Economy: 
  • • Decrease in  Repo Rate: 
    • When the RBI wants to encourage economic activity in the economy, it reduces the repo rates.
    • Doing this enables commercial banks such as the SBI to bring down the interest rates they charge (on their loans) as well as the interest rate they pay on deposits.
    •  This, in turn, incentivises people to spend money, because keeping their savings in the bank now pays back a little less, and businesses are incentivised to take new loans for new investments because new loans now cost a little less as well.
    • Increase in Repo Rate: 
    • RBI tries to control inflation in the economy by increasing the repo rate. 
    • By doing this, it makes borrowing a costly affair for businesses and industries and this in turn slows down investment and money supply in the market.
    •  It eventually and negatively impacts the growth of the economy, which helps in controlling inflation.

• Monetary Policy Committee (MPC) of RBI: 
  • • The monetary policy committee is a six-member panel which sets the repo rate. Repo rate acts as a benchmark for all other interest rates in the economy.
    • Out of the six members, three are external. They are appointed for a fixed four year term. 
      • Among the three internal members, one is the RBI Governor who chairs the committee. 
      • RBI’s deputy governor in charge of the monetary policy is the second internal member. 
      • The third member is one RBI official who is nominated by the central board of RBI. The executive director in charge of monetary policy is typically the third member. 
    • According to the amended RBI Act, the MPC is required to meet at least four times in a year. 
    • Once in every six months, the RBI is required to publish the Monetary Policy Report to explain the sources of inflation and the forecast of inflation for 6-18 months ahead.

Methylocucumis Oryzae

• News: Researchers have isolated and characterized India’s first cultures of the indigenous methanotroph Methylocucumis oryzae, sourced from rice fields and wetlands, predominantly in Western India.
• Methane
  • • It is the second most important greenhouse gas, with 26 times the global warming potential of carbon dioxide. 
    • Major sources of methane include wetlands, ruminants, rice fields, and landfills. 
• Methanogens:
  • •  They are the organisms responsible for methane production, are bacteria that oxidize methane to reduce its concentration in the environment.
    • Recently, researchers have isolated and described India’s first cultures of the indigenous methanotroph Methylocucumis oryzae from rice fields and wetlands, primarily in Western India.
• About Methanotrophs
  • • Definition: Methanotrophs are specialized bacteria that use methane as their primary carbon and energy source.
    • Role: They are natural methane mitigators, oxidizing methane to produce carbon dioxide and water, thereby helping to reduce atmospheric methane levels.

• About Methylocucumis Oryzae
  • • Description: Methylocucumis oryzae is a bacterium found predominantly in wetlands and rice fields.
    • Shape: It has an oval and elongated shape, resembling a cucumber, which is why it is sometimes called ‘methane-eating cucumbers.’
    • Gram Staining: It is a Gram-negative bacterium with a rod-shaped morphology and forms colonies with unique characteristics under specific growth conditions.
    • Methane Oxidation: It oxidizes methane using methane monooxygenase (MMO), converting methane to methanol, which is then further processed into formaldehyde, formate, and carbon dioxide.
    • Habitat: These methanotrophs thrive in environments where both methane and oxygen are present, such as wetlands, rice fields, ponds, and other water bodies.
    • Environmental Role:
      • Carbon Cycle Contribution: M. oryzae helps to reduce atmospheric methane levels, contributing to the global carbon cycle.
      • Greenhouse Gas Reduction: In rice paddies, these bacteria help balance methane levels, thereby reducing overall greenhouse gas emissions from agricultural systems.
    • Applications
      • Agricultural Impact: By creating conditions that favor the growth of methanotrophs like M. oryzae, methane emissions from rice paddies can be minimized.
      • Bioremediation: M. oryzae and other methanotrophs are being studied for their potential in bioremediation due to their ability to oxidize methane and other hydrocarbons, making them useful for cleaning contaminated soil and water.
      • Biotechnology: The metabolic pathways of M. oryzae could be engineered to enhance methane conversion processes, contributing to sustainable energy solutions.
    • Constraints
      • Slow Growth: The main constraint to the widespread use of Methylocucumis oryzae is its slow growth, which limits its large-scale cultivation needed for effective mitigation and biotechnological applications.

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Sucralose

• News:   As per a new study, judicious use of sucralose as sugar substitute has benefits for diabetics.
• About Sucralose
  • • Sucralose is a no-calorie sweetener designed to reduce the intake of added sugars while still allowing individuals to enjoy the taste of something sweet. 
    • It falls into the category of high-intensity sweeteners, which includes other no-calorie sweeteners like monk fruit and stevia, as well as low-calorie sweeteners such as aspartame. 
    • Collectively, these are often referred to as sugar substitutes or nonnutritive sweeteners.

• Sweetness Intensity
  • • Sucralose is known for its intense sweetness, being approximately 600 times sweeter than sugar. 
    • This high level of sweetness means that only a small amount is needed to achieve the desired flavor in foods and beverages.
• Versatility in Use
  • • Sucralose can be used as an ingredient in various types of food and beverages. 
    • It maintains its sweetness under a wide range of conditions, making it exceptionally stable compared to other sweeteners.
• Production Process
  • • The production of sucralose starts with regular table sugar (sucrose), but sucralose itself is not sugar. 
    • During its production, three hydroxyl groups on the sucrose molecule are replaced with chlorine atoms.
    •  This structural modification prevents digestive enzymes from breaking down sucralose, contributing to its safety profile.
• After Consumption
  • • Most of the sucralose consumed—approximately 85 %is not absorbed by the body and is excreted unchanged in the feces. 
    • Of the small percentage that is absorbed (about 15 %), it is not metabolized for energy and thus does not contribute any calories. 
    • All absorbed sucralose is quickly excreted in the urine.