In News

The National Highways Authority of India (NHAI) is set to return to funding through private investments and plans to offer at least two highway upgradation projects to private players using the build-operate-transfer (BOT) model during the current quarter.

About News

• Over the last few years, especially since the onset of the pandemic, the NHAI resorted to offering projects under the Hybrid Annuity Model (HAM) that ensures funds to the company building the road, thereby insulating it from financial risk to a certain extent.

• The BOT (toll) model was the preferred model for road projects, accounting for 96% of all projects awarded in 2011-12. But this progressively reduced to nil.
• When the interest in BOT projects started to wane, road construction shifted to the traditional engineering, procurement and construction (EPC) mode, with the HAM model being devised later.
• After funding highway projects through public money for a better part of the last decade, the National Highways Authority of India (NHAI) is set to return to BOT.

Need for the shift to BOT:

• There is a rekindled interest of investors in pure public-private-partnership (PPP) projects.
  • This is due to the revised model concession agreement (MCA) for build-operate-transfer (BOT-toll) projects released by the government in 2020.

• • Under the revised model, the revenue potential of a project would be reassessed in every five years during the concession period as against every 10 years now.
  • This would mean that the concession period (or period till which road developers can collect toll) is extended early in the tenure of the contract, ensuring surety of revenue for the private company.
• It will curtail NHAI’s rising debt and find non-government, non-debt resources for highway development.
  • To protect the investor interest, the government will also guarantee to the developers that a BOT-toll project will be awarded only after NHAI taking possession of 90% of the requisite land, similar to HAM projects.

The shift- A positive sign

• The PPP model is key to road asset development, and the BOT scheme is central to attracting private investment.
• When private interest waned post-2011, the shift to the EPC and HAM models was made to plug the funding gap. The return to BOT could be a big positive for the sector.

Sources:

• For new projects, NHAI back to build-operate-transfer model
• Public-Private Partnership: NHAI may take BOT route for new projects
• Government revises BOT model for highway projects to lure investors

In News

The Reserve Bank of India (RBI) has recently announced an arrangement for domestic traders to settle imports and exports in rupees.

About the News

• The order would take immediate effect and the mechanism is designed to facilitate trade with sanctions-hit Russia and promote growth of global trade with emphasis on exports.
• However, banks acting as authorised dealers for such transactions would have to take prior approval from the RBI to facilitate this.
• As per the broad framework for cross-border trade transactions in INR under Foreign Exchange Management Act, 1999 (FEMA), and all exports and imports under this arrangement may bedenominated and invoiced in rupee (INR) and the exchange rate between the currencies of the two trading partner countries may be market determined.

Understanding the Rupee Payment Mechanism

• Authorised Dealer Banks in India have beenpermitted to open Rupee Vostro Accounts (an account that a correspondent bank holds on behalf of another bank).

• Indian importers undertaking importsthrough this mechanism will make payment in INR that will be credited into the Special Vostro account of the correspondent bank of the partner country, against the invoices for the supply of goods or services from the overseas seller.
• Indian exportersusing the mechanism will be paid the export proceeds in INR from the balances in the designated Special Vostro account of the correspondent bank of the partner country.
  • Indian exportersmay receive advance payment against exports from overseas importers in Indian rupees through the above Rupee Payment Mechanism.
  • Before allowing any such receipt of advance payment against exports,Indian banks need to ensure that available funds in these accounts are first used towards payment obligations arising out of already executed export orders/export payments in the pipeline.
  • Balance in Special Vostro Accounts can be used for: payments for projects and investments, export/ import advance flow management, and investment in Government Treasury Bills, G-Secs etc.
• Significance of the Mechanism:
  • Promotes Growth: It will promote growth of global tradeand will support the increasing interest of the global trading community in INR.
  • Trade with Sanctions-hit Countries: This will help in trading with sanctions-hit Russia where trade has been virtually at standstill due to payment problems.
  • Reduce Forex Fluctuation: The move would also reduce the risk of forex fluctuation, especially looking at the Euro-Rupee parity.
  • Prevents Fall of Rupee: With ongoing rupee weakness, this mechanism aims at reducing demand for foreign exchange, by promoting rupee settlement of trade flows.

Existing Mechanism

As per the already existing mechanism,

• If a company exports or imports, transactions are always in a foreign currency (excluding with countries like Nepal and Bhutan).
• Therefore, in case of imports, the Indian company has to pay in a foreign currency(predominantly in dollars and could also include currencies like pounds, Euro, yen etc.).
• The Indian companygets paid in foreign currency in case of exports which is then converted to Rupees.

Source:

• RBI sets up mechanism to settle international trade transactions in rupee
• RBI sets up mechanism to settle international trade payments in rupees
• India goes for global trade payments in rupees: What it means & challenges ahead

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• RBI sets up mechanism to settle international trade payments in rupees

In News

The Supreme Court has recently underlined the pressing need for reform in the law related to bail and called on the government to consider framing a special legislation on the lines of the law in the United Kingdom.

About the recent Ruling

• The ruling is essentially a reiteration of several crucial principles of criminal procedure.
• Certain clarifications have been issued to anolder judgment- Satender Kumar Antil vs CBI delivered in 2021 on bail reform.
• Referring to the state of jails in the country, where over two-thirds lodged are undertrials, the Supreme Court has underlined that arrest is a draconian measure that needs to be used sparingly.

India’s Law on Bail

• The CrPC does not define the wordbail but only categories offences under the Indian Penal Code as ‘bailable’ and ‘non-bailable’.
• The Code empowers magistrates to grant bail for bailable offences as a matter of right. This include release on furnishing a bail bond, with or without security.
• In case of Non-bailable offences , a magistrate would determine if the accused is fit to be released on bail. Non-bailable offences are cognisable,which enables the police officer to arrest without a warrant.
  • Section 436 of the CrPC 1973, lays down that a person accused of abailable offence under IPC can be granted bail. 
  • Section 437 of the CrPC 1973,lays down that the accused does not have the right to bail in non-bailable offences and it is the discretion of the court to grant bail in case of non-bailable offences.

What has the Supreme Court said on Reforms?

Source:

• Explained: The bail law and Supreme Court call for reform
• Bail, Not Jail: Why Supreme Courts Has Urged Govt To Frame New Bail Act

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• Bail, Not Jail: Why Supreme Courts Has Urged Govt To Frame New Bail Act

On 15 July 1783, Jamshedji Jijabhai was born. Jamshed Ji Jijabhai’s most name is due to his charity. Due to financial constraints, he could not take education. At the young age of 12, he joined the business of selling old bottles with his maternal uncle. He was the first Indian to be honored by Queen Victoria. Jijabai, who was away from communal discrimination, took many steps to improve the condition of women and to remove the evils of Parsi society.

Prominent among the institutions established with his financial assistance is – J. J. Hospital, J. J. School of Art, Poona Dam, and Water Institute. He was Bron on 15 July 1783 in Mumbai.

Sources:

• 15 July in Indian and World History:
• जे आले ते रमले.. : जमसेटजी जीजीभाय:

• Context: Birth certificates of children born after August 2015 issued by the Civil Registration System (CRS) will be available on DigiLocker to its registered users.
• DigiLocker is a flagship initiativeof MeitY under “Digital India” programme.

• This is government’s effort to create an electronic version of documents,which can be easily verified and stored in printable format.
• The users canstore their documents such as insurance, medical reports, PAN card, passport, marriage certificate, school certificate and other documents in the digital format.
• The lockercan be accessed by individuals, using their mobile number.
• Technology companies such as Google and Dropbox offer storage spacefor users to store documents.
• Apart from e-documents, DigiLocker can store a Uniform Resource Identifier (URI) linkof e-documents issued by various issuer departments.
• CRS is a universal, continuous, compulsory, and permanent recording of birth, death, and stillbirth record at the district level.
• In India the registration of births and deaths is carried out under provisions of the Registration of Birth and Death (RBD) Act, 1969.

Source:

• CBSE Result 2022: How To Use DigiLocker To Download Class 10, 12 Marksheet
• Birth certificates of children born after August 2015 will be available on DigiLocker

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• DigiLocker

• Context: The University of Houston has recently developed an electrolyte which makes it viable to produce sodium ion-based batteries commercially and on a larger scale.
• Sodium-ion (Na-ion) batteries are solid-state batteries, that use solids instead of liquids to ferry ions through their core.
• They have three components:

• • A negatively charged anode made up of hard carbons;
  • A positively charged cathode constituting sodium-containing layered materials and
  • Electrolyte that allows electrons to move.
• As compared to Lithium-ion Batteries, the Sodium-ion (Na-ion) batteries replaces the polymer separator used in lithium-ion batteries with a solid-state separator, which is more energy-dense.
• They Lower the charging time and improve life by eliminating the need to have lithium diffuse into the carbon particles as in conventional lithium-ion cells.
• Their significance include:
  • Natural abundance of sodium resources
  • Greener and sustainable battery system
  • Lesser cost of extracting (20% lesser that Lithium)
  • Contain non-flammable solid electrolytes that exhibit high safety.

Source:

• University of Houston takes a leap forward in sodium-ion battery tech
• Sodium-ion battery breakthrough

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• Sodium-ion battery breakthrough

• Context: There has been recent amendments in India’s Flag Code.
• The Flag Code of India, 2002 was amended vide Order dated December 30, 2021, and National Flag made of polyester or machine made flag have also been allowed.

• • Now, the National Flag shall be made of hand-spun, hand-woven or machine-made cotton/polyester/wool/silk/khadi bunting, as per the amended flag code.
• The amended flag code will facilitate the availability of flags on such a large scale and also make them affordable for the general public.
• The amendment to the flag code has, however, been questioned by those who feel the move will break the association between the Tricolour, the Independence movement and khadi.
• The use, display and hoisting of the National Flag in the country is guided by an overarching set of instructions called the ‘Flag Code of India 2002’.
• It brings together all laws, conventions, practices, and instructions for the display of the National Flag. It governs the display of the National Flag by private, public, and government institutions.
• The Flag Code of India took effect on January 26, 2002.

Source:

• Explained: What is the Flag Code and how has it been changed recently?
• From Lion Capital to Flag Code, Modi govt is shifting the meaning of India’s symbols

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• Context: Economist and Nobel laureate Michael R Kremer has said that for a diverse country like India randomised controlled trials (RCTs) must be carried out at multiple sites for better analysis and to see differences across states.

• RCT, a research design for experimental studies, was heavily discussed after Kremer and fellow economists Abhijit Banerjee and Esther Duflo won the 2019 Nobel Prize winner in Economics.
  • They had made the use of RCT for their research on poverty.
• RCTs involve dividing a population into smaller groups, in order to comparatively see the outcomes of an external stimulus.
  • For example, if the aim of a study is to understand whether a free grains distribution scheme helped improve the nutrition levels among people living in a district, researchers will first create two groups within the population, and then put people into those groups randomly.
• Critics say the method cannot be used in all cases, while others argue it is fundamentally flawed.
• Further, RCTs also cannot be used to study something after it has happened, they need to be planned beforehand.

Sources:

• Explained: What are randomised controlled trials, how do they work?
• RCT:

Essence: The article is written against the backdrop of the growth of Indian states. There are a number of problems with various measurements, but life expectancy is regarded as the greatest overall indicator of socioeconomic achievement. Based on their per capita income and life expectancy, the article further divided India's 22 states into four major groupings: The most successful development states; low growth states; high growth states; least developed states. In the not-too-distant future, India will be confronted by millions of disenchanted, unemployed, and irate young people. Children growing up in India's least developed states are the country's future. They can benefit from adopting the policies and best practises shown in the "balanced growth" states since there are more similarities than differences between them.

Why should you read this article?

• To comprehend the problems with the various development measures and why life expectancy is seen as the best indicator of socioeconomic achievement.
• To understand the criteria used to classify development of India's 22 states.
• To know what the best course of action should be.

Source:

• How our less developed states can catch up with the rest:

Essence: Author warns governments of South Asia to either learn lessons from the crisis unfolding in Sri Lanka or be ready to face a similar situation. Article says that focusing on local self-government to know the pulse of masses and avoiding nepotism by top leaders is essential for efficient functioning of the country.

Knee-jerk reaction to a financial problem like Mahinda gave by banning import of chemical fertilizers and excessive dependence on foreign governments for domestic investment is a sure shot recipe for disaster.

Why should you read this article?

• To understand how misguided steps taken by top leaderships can plunge a country into disaster.

Source:

• The Sri Lanka collapse carries lessons for all South Asian governments

Background

• A certain image of District Collectors travelling in convoys has been established, as they go about their inspections or for routine travelling.
• But Sandeep GR, collector of Chhatarpur, and former commissioner of the municipal corporation in Jabalpur prefers travelling on his bicycle.

About the initiative by Sandeep

• Travelling on a bicycle allows him to understand the realities of lived experiences better and helps him get a clearer grasp of the place.
• Besides having his ear to the ground, Sandeep also births initiatives to tackle long-standing issues in the country.
  • One such idea is the planting of a fruit forest to help with the concept of food security.
• Besides food security, Sandeep is also concerned about issues like women’s safety and cleanliness.
• A place that’s well-lit automatically ensures lesser criminal activity and discourages garbage dumping. So, he’s been spearheading the initiative of installing LED lights throughout the city of Jabalpur.
• A passionate problem-solver, he has also devised solutions to problems of cleanliness and road safety. By ensuring garbage vehicles follow a route on time, he’s reduced the city’s garbage vulnerable points (GVPs).

Source:

• IAS Chooses Cycle over Govt Car for Inspections, Wins Hearts With Pro-People Initiatives: