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Following the discontinuation of the free foodgrains scheme after December, the government is learnt to be engaged in inter-ministerial consultations to assess the position of stocks in the central pool as it explores lifting the May 2022 ban on wheat exports.
The measures, a senior official said, are being taken in a calibrated way taking into account the supply of stocks in the market and the required distribution under the National Food Security Act (NFSA).
A new factor is that the overall distribution is now set to be lower in quantity after the announcement given that additional allocation under Pradhan Mantri Garib Kalyan Yojana (PMGKAY) – launched in April 2020 to alleviate Covid distress — has now ended.
On December 23, the government announced the discontinuation of PMGKAY under which it gave 5 kg of foodgrains per month to about 81.35 crore people free of cost over and above their NFSA entitlement of 5 kg per person per month at Rs 2-3/kg.
The government decided to make available the 5 kg/person/month foodgrains under NFSA free of cost for one year from January 2023.
The thinking is that food security is key…we are very conscious of the fact that food stocks and food security should be maintained,” the official told The Indian Express.
Covid distress schemes could not have been stopped suddenly, we were sensitive to public consumption. As a result, more food stocks went in for free distribution. We are building up stocks, once it’s adequate, we will reconsider the wheat export ban.
Wheat stocks in the central pool have been depleting on an average by 2 million tonnes every month over the last six months.
As per data by Food Corporation of India (FCI), wheat stocks was at a six-year low of 19.02 million tonne as on December 1.
In November, wheat stocks were recorded at 21 million tonne. The earlier lowest levels for the months of November and December were last seen six years ago in 2016, at 18.84 million tonne and 16.69 million tonne, respectively.
Loose soil, tremors, choked drainage: Joshimath alarm bells rang for years (Page no. 1)
(GS Paper 3, Environment)
The appearance of cracks on many roads and houses across Joshimath, due to land subsidence, is neither a new phenomenon in this region — nor a reversible one.
Such cracks have been observed in and around the town for several years now although this time, experts say, they are deeper than ever adding to growing anxiety and concern.
Today’s situation is a result of a variety of reasons, both natural and man-made,” said Kalachand Sain, director of the Dehradun-based Wadia Institute of Himalayan Geology whose experts are part of the government team working to salvage the situation in the hilly town.
The soil here is weak, comprising mostly of debris brought about by landslides, the area is also a highly seismic zone. Unplanned construction, population pressure, tourist infrastructure, obstruction to natural flows of water, hydel power projects, development activities have all contributed to the present situation.
The first warning signs were sounded about 50 years ago in the M C Mishra committee report that had highlighted the dangers of unplanned development in this area, and identified the natural vulnerabilities.
After that there have been several studies, all flagging the similar concerns. But the town has grown several times since then. It is now the hub of tourists headed to at least three important shrines — Badrinath, Hemkund Sahib and Shankaracharya temple — as a result of which major infrastructure development has taken place.
The problem has not been so much that these activities have been carried out as that they have been done in an unplanned, and often unscientific, manner.
The main problem in Joshimath has been the fact that the town has come up on relatively loose soil, deposited by landslides triggered by earthquakes.
There are lots of loose soft rocks, moraine (material left behind by retreating glaciers), and sediments. D P Dobhal, a glaciologist, said the area was once under glaciers.
The soil is, therefore, not ideal for large constructions. Added to this is the fact that the area falls in a highly seismic zone, and experiences regular tremors, making the top soil unstable.
India, Japan joint exercise from Jan 12 to promote air defence cooperation (Page no. 1)
(GS Paper 3, Defence)
India and Japan are set to hold a joint air exercise that seeks to promote air defence cooperation between the two sides. Exercise ‘Veer Guardian-2023’ that involves the Indian Air Force (IAF) and Japan Air Self Defence Force (JASDF) at Hyakuri Air Base.
The Indian contingent participating in the air exercise will include four Su-30 MKI, two C-17 and one IL-78 aircraft, while the JASDF will be participating with four F-2 and four F-15 aircraft.
The exercise will include the conduct of various aerial combat drills between the two air forces. As per the IAF, they will undertake multi-domain air combat missions in a complex environment and will exchange best practices.
Experts from both sides will also hold discussions to share their expertise on varied operational aspects. Exercise ‘Veer Guardian’ will fortify the long-standing bond of friendship and enhance the avenues of defence cooperation between the two air forces.
It was during the second 2+2 Foreign and Defence Ministerial meeting held in Tokyo, Japan, on September 8 last year that India and Japan had agreed to step up bilateral defence cooperation and engage in more military exercises, including holding the first joint fighter jet drills, “reflecting the growing security cooperation between the two sides”.
This exercise will thus be another step in the deepening strategic ties and closer defence cooperation between the two countries.
India and Japan have in the recent past held several joint exercises. In September last year, the navies of both countries took part in the sixth edition of the Japan India Maritime Exercise (JIMEX) in the Bay of Bengal.
The JIMEX series of exercises began in 2012 with a special focus on maritime security cooperation between India and Japan. Its last edition was conducted in October 2021 in the Arabian Sea.
In February-March last year, both countries participated in Exercise DHARMA GUARDIAN-2022, an annual exercise between Indian Army and Japanese Ground Self Defence Force at Foreign Training Node, Belgaum.
Japan also hosted India, the US, and Australia in the multilateral exercise Malabar in November last year.
Govt & Politics
PM launches aspirational block programme aimed at spurring develpment parameters (Page no. 7)
(GS Paper 2, Governance)
The government is set to launch the Aspirational Blocks Programme. The Centre had announced its intention to launch this initiative in the Union Budget 2022-23.
Launching the Aspirational Block Programme, Prime Minister underscored the success achieved in various Aspirational Districts in the country under the Aspirational District Programme.
He added that the aspirational district model should now be taken up to block level in the form of the Aspirational Block Programme. He asked the officials present in the meeting to implement the programme in their respective states.
Later, taking to Twitter, Modi said, “During the Chief Secretaries conference today, the Aspirational Blocks programme was launched.
This will enable holistic development in those areas that require added assistance. The focus area will also be more specific thus ensuring greater attention to detail.
According to sources, the programme will cover 500 districts across 31 states and Union Territories initially. Over half of these blocks are in 6 states—Uttar Pradesh (68 blocks), Bihar (61), Madhya Pradesh (42), Jharkhand (34), Odisha (29) and West Bengal (29). However, states can add more blocks to the programme later.
The Aspirational Blocks Programme is on the lines of the Aspirational District Programme that was launched in 2018 and covers 112 districts across the country.
In her Budget speech last year, Sitharaman had announced the government’s intention to launch the ABP. “Our vision to improve the quality of life of citizens in the most backward districts of the country through the Aspirational Districts Programme has been translated into reality in a short span of time,” she had said.
Addressing the 2nd National Conference of Chief Secretaries, Modi said that the entire world is looking up to India to bring stability to the global supply chain. Take steps to make the MSMEs global champions and part of the global value chain, he urged the officials.
Express Network
In a first Kerala sets up welfare board to provide pension to MGNREGS workers (Page no. 8)
(GS Paper 2, Governance)
For the first time in the country, Kerala government has launched a welfare fund board for the workers registered for the MGNREGS and the state’s urban job guarantee scheme — Ayyankali Urban Employment Guarantee Scheme. This will facilitate the workers to get a monthly pension from the board on they turn 60.
The board, which came into being on Thursday, has CPI(M) state committee member S Rajendran as the chairman. Rajendran, who is the state general secretary of NREGS Workers’ Union (a trade union of workers affiliated to CITU), said the welfare fund board is a promise of the LDF.
This is the first time that a state government has formed a welfare fund board for MGNREGS workers. In 2021, the state Assembly had passed a Bill pertaining to the formation of the board. We will introduce various relief measures for the workers. The scheme enhances the financial security of the MGNREGS workers.
As per the norm, any worker between the age of 18 and 55 can take the membership in the fund board. They have to pay an amount as premium (Rs 50 tentatively fixed) every month until the age of 55 and a member who has paid the contribution for at least 10 years will be eligible for pension.
Apart from that, the fund mobilised by the board will be utilised for meeting various welfare and relief requirements of the workers such as educational and marriage expenses.
The welfare fund will comprise the government grant, the premium collected from the registered workers, the contributions of the local bodies and the loans availed by the fund board.
Apart from the monthly contribution from the workers, the government will also make an equivalent contribution towards the fund. The government can revise the contribution once every three years.
As per the data of the state NREGS Mission, Kerala has 21 lakh active job cards in 14 lakh households. The welfare fund board will have a chief executive officer, five official members and eight unofficial members as directors of the fund board.
India to hold Y20 summit during G-20 presidency (Page no. 8)
(GS Paper 2, International Organisation)
The first ever Y20 (Youth 20) Summit to be held in India on the sidelines of the G20 Summit, will focus on themes of future of work; climate change and disaster risk reduction; peacebuilding and reconciliation; and youth in democracy.
Union Minister for Youth Affairs and Sports Anurag Thakur launched the themes of the Y20 summit, along with its logo and website in New Delhi.
Addressing the curtain-raiser event of Y20 Summit India, Thakur said, “The Y20 Summit is a unique opportunity to allow the youth to provide constructive policy inputs and to utilise the platform to voice their opinions for the world audience.
These priority areas of the summit point to the urgency with which the world has to reconcile with the reality of the changing times in our quest to survive and thrive.
Secretary, Youth Affairs, Meeta R Lochan, said that Y20 will focus on global youth leadership and partnership. For the next eight months, there will be pre-summits on the Y20 themes along with discussions and seminars at universities, in the run up to the final Youth 20 Summit.
The Y20 Summit is likely to be held in Guwahati.
To ensure accountability in delivery of schemes govt sets up audit panel (Page no. 8)
(GS Paper 2, Governance)
In a first of its kind, Rajasthan government has set up a Social and Performance Audit Authority (SPAA) to ensure accountability in delivery of government schemes and programmes.
Social audit will be undertaken along the lines of social audit in MGNREGA. Thakral said that Resources Persons will be engaged at the district, block and village levels as per requirement.
Social audit will not necessarily require high qualification of the resource persons, who will be empaneled as per requirement and paid on a per day basis.
For performance audit, SPAA will engage personnel from Valuation Wing under the Planning Department as well as the Department of Treasuries and Accounts, with the latter reportedly having excess personnel, among others.
Post the social and performance audit, the auditors will file a report online. Thakral said that the Audit Management System (AMS) under the Local Fund Audit Department (LFAD), which was set up a few months ago, will be customised for audit reports under SPAA.
Following the announcement in the 2021-22 budget, the cabinet gave its approval to set up the authority in August 2022, and it was constituted in September, 2022.
Thakral said that while there are already a few audit authorities such as LFAD, Comptroller and Auditor General (CAG), etc., they are largely focussed on auditing accounts, compliance with budget rules, etc. “Schemes or projects are launched with certain objectives. So the performance audit will check whether this is being achieved.
Economy
India is growing robustly relative to its peers there is room to grow further (Page no. 13)
(GS Paper 3, Economy)
Referring to India’s export bans on food grains, International Monetary Fund’s Deputy Managing Director Antoinette Sayeh said countries should not impose additional restrictions as such bans hurt food importers as well as India.
In an interaction with reporters in New Delhi, Sayeh also said relative to other countries, India is growing very robustly and there is room to grow further.
Given the convergence of areas, we think between India and IMF, we can best partner to strengthen multilateralism and certainly issues around dealing with the financial tightening, that is, considerable potential impact on emerging markets and developing economies and their access to financing, dealing with the pressures on the trade front, in particular, and fragmentation we have seen there already, dealing with debt vulnerabilities also that are significant for many countries and require a multilateral approach, bilateral creditors, private sector as well to deal with and areas of focus on the quota reform at the IMF, for example, and crypto regulation.
All of those areas India certainly wants to be a leader in and we’re supporting India with analytic work and other advice and information that helps we think will be helpful to the leadership role.
India is certainly emerging and recovering very well from the pandemic, they’re growing so robustly relative to its peers and to the global economy as a whole.
In the first three quarters of 2022, looked at on a year-on-year basis, the growth has been around 6.3% already, and our projection is that for this fiscal year, that is through June this year, India will be growing by 6.8% and then the next fiscal year by 6.1%.
All of those are considerably in excess of what other emerging markets are doing, their average is some 3.6%. And the world economy, we’ve projected, will only grow by 2.7% this year.
So, relative to others, India is growing very robustly and there is room to grow further and to achieve the potential growth that India has that is even higher.
And to get to that, of course requires a focused attention on maintaining macro stability, addressing the considerable structural reform agenda that will still be there to elicit further investments from FDI, the regulatory issues that need to be addressed also in terms of the financial sector, and its ability to intermediate and to provide needed financing on a consistent basis, issues around labour markets that need to also be addressed.
Why the forex reserves fell $70 billion in 2022 (Page no. 13)
(GS Paper 3, Economy)
The RBI also keeps the forex reserves in the dollar-denominated assets like the 10-year benchmark securities of the US and UK. Since the yields of these assets rose in 2022, it impacted India’s foreign exchange reserves.
Besides valuation loss, the forex reserves also declined as the Reserve Bank sold dollars in the spot market to smoothen the sudden fluctuations in the rupee’s movement caused by outflows from foreign investors.
In 2022, foreign investors pulled out Rs 1.2 lakh crore from the domestic equity market. FIIs sell their equity investment in the rupee, convert it into the dollar and take the money out.
Since there was a shortage in the dollar supply last year, the RBI used its forex reserves to meet the dollar demand of FIIs,” said a treasurer of a state-run bank.
In 2022, FPIs started pulling out after inflation spiked and central started hiking interest rates. The Russian invasion of Ukraine accentuated the FPI withdrawals with the global economic slowdown making inflows tougher.
Higher FII outflows led to an over 10 per cent fall in the rupee – making it the worst-performing Asian currency in 2022. As per the latest data, the RBI remained net seller of the US dollar between January and October, 2022.
It bought $144.58 billion and sold $199.02 billion in the spot market. On a net basis, the RBI sold $54.44 billion in the spot market.
With the depletion of reserves in 2022, the number of months of imports that can be covered through the country’s reserves have also declined.
In a report last month, the Reserve Bank said the country’s foreign exchange reserves at $ 564.1 billion as on December 9, 2022, covered 9.2 months of imports projected for 2022-23.