 A very good evening aspirants, welcome to the Hindu newspaper analysis brought to you by Shankar Iyer's academy. Today's date is 23rd of January 2023. Displayed here are the list of news articles that we are going to discuss today. So without much delay, let us get into the first news article discussion. Now look at this news article. It raises concern about the financial decisions that Indian financial institutions are making. We all know that India is aiming to become carbon neutral by 2070, right? But if we see the debt portfolio of our banks, they have sanctioned loans to more carbon intensive sectors. Now as we try to bring in more clean energy plants into the economy, we are slowly discouraging the carbon intensive industries. It means we are making it difficult and costly for the carbon intensive businesses to operate. And now as we are moving towards clean energy and ditching the fossil fuel industries, these fossil fuel industries will experience a shock. This will lower their profit and in turn affect their capacity to repay the loans. But our financial institutions are not ready to meet these challenges. So this is the crux of the news article given here. Now we will analyze this article in detail and we will try to understand what is written there in the article, okay? See recently a study was published in the Global Environmental Change Journal. It says that India's financial sector is highly exposed to the risk. This is because the economy is transitioning from being largely dependent on fossil fuel to clean energy. Now you may wonder this transition is actually good and how it is going to affect the economy, right? Here the problem is not with the transition. The problem lies with the financial sector not being prepared to meet the challenges that this transition would bring about, okay? To fully understand this, you must first understand some background. See in 2021, Prime Minister Narendra Modi committed that India would reach net zero emissions by 2070. We have committed so we have to start progressing, right? So India has announced plans to source half of its electricity needs from non-fossil fuel sources by 2030. But there is a lack of coordination. If you are asking me why, let me list out the issues in it. See it is because if you see the high carbon industries like power generation, chemicals, iron and steel and aviation, these industries account for 10% of outstanding debt to Indian financial institutions. And related industries make for about one-fifth of the manufacturing sector debt. Now as I told earlier, any shock would disturb their loan repayment capacity. This in turn would expose our financial sector to risk. So this is one major issue highlighted in the research. Secondly, there is shortage of experts in India's financial institutions who have the expertise to advise the institutions on such a transition. A survey was conducted as a part of the research. It was found that of the 154 finance professionals surveyed, less than half of them were familiar with environmental issues. So how can we expect that environmental, social and governance risks will be taken into consideration during financial planning? The financial professionals are well-vested only in the financial aspects and they are not aware of what's going on in the economy. So this is the second issue. Also, according to the draft National Electricity Plan 2022, coal's share in the electricity generation mix will decrease to 50% by the year 2030 compared to the current contribution or 70%. To make this happen, we need to give out more loans to renewable energy sectors. But that's also not happening. The financial decisions of Indian banks are locking the country into a more polluting, more expensive energy supply. For example, only 17.5% of bank lending to the power sector has been to pure play renewables. So the findings of the article suggest that financiers, regulators and policy makers in emerging and developing economies should be acting shively to ensure an orderly transition to net zero. I hope this article gave a very good insight about two different sectors and how decision of one sector actually affects the other one. So you can make note of this news article, very important news article. So these learned points, now let us move on to the next news article discussion. This article provides us the points about Tamil Nadu Governor R. N. Ravi's interaction with a group of IAS trainees. He responded to the question by the IAS trainees about his responsibility as the interlocutor for the Naha Peace talks between 2014 and 2021. So in this discussion, we'll understand the points provided in this news article. Firstly, we'll see briefly about the Naha Insurgency. See, Naha refers to the tribal group belonging to the northeastern part of our country. They occupy a vast area of Arunachal Pradesh, Naha Land, Manipur and Myanmar. These tribes had been living in isolation for centuries and had been fighting among themselves. Only in the last century, they came into contact with the rest of the world, especially India. Majorly, this happened during British India. Basically, the British followed a policy of least interference in the internal affairs of the Naha's. That is, the British gave due regard to the continuation of the tribal cultures by the Naha people. Then in the 1870s, the British promulgated Bengal Eastern Frontier Regulation. This regulation introduced the Inner Line system in the northeast which prevented people of other plains from entering the Naha areas. Due to this Inner Line system, Naha's were saved from the exploitation by outsiders and it helped them to remain isolated. But the Inner Line system also had its bad effects in the long run. Because of the Inner Line system, development did not happen in Naha-inhabited regions. Then the isolation kept the Naha's away from the Indian national mainstream. So during the early 20th century, some Naha people united with the insurgency mindset and they started the Naha movement. This movement climbed a distinct ethnic identity for Naha's and demanded an independent homeland for the Naha's. The movement has lasted for many years. But ultimately in 1997, the government of India convinced the Naha insurgents to sign a ceasefire agreement. So the government of India and the insurgents began the holding of talks with the aim of signing a Naha peace accord. Then in August 2015, the government of India and the Naha Insurgent Group successfully concluded a dialogue on Naha political issues by signing a framework agreement. The agreement came to be known as Naha peace accord. This agreement was expected to end the age-old insurgency in the Naha-inhabited areas. But unfortunately this peace agreement did not come into force because of unrealistic demands of Naha insurgents. Because they demanded for a separate constitution, separate flag and also integration of all contiguous Naha-inhabited areas. This led to the appointment of interlocutor or negotiator for Naha peace talks between the government of India and Naha insurgents. Okay, know that the President Tamil Nadu Governor R. N. Ravi served as the interlocutor for Naha peace talks from 2015 to 2021. And that is why he provided some points about the Naha insurgency and about Naha peace talks during the interaction with the group of IAS trainees. Since he said from his own experience, after working as an interlocutor, his opinions are very important. That is why we chose this news article. Okay, now you can also make note of all these points. Firstly, the governor said the British had created the wrong narrative that the people of Naha land were different and did not belong to India. He said it was the core reason for prolonged conflict in the Naha land state. Secondly, the governor said the British creator narrative was later followed even by the government of India. He pointed out that the government's path was wrong. He said after he took charge as the interlocutor, he gave a clear message to the negotiating group that the narrative of Naha land not being a part of India was unacceptable. And finally, the governor said after he took charge as the interlocutor, one of the first thing he did was he made Delhi as the venue for peace talks. Now that earlier the peace talks happened in other countries as part of an earlier agreement. This posed many challenges to the peace process. Okay, so these are all some of the problems that were quoted by the governor regarding the Naha insurgency. The Tamil Nadu governor also provided some solutions to this. He said the Naha insurgents should have to accept that Naha land was part of India. He also highlighted that the solution should be reached within India's constitutional framework. He noted that some special privileges could be granted to the Naha's by amending the constitution. Then the governor said the government of India must accept the Naha's by the means of love and not by military action. Okay, in turn the Naha's must also accept that they could not drive India out of Naha land. Okay, so these are all some of the insights that the governor gave during the interaction. Make note of all these points. You can use it in your main sanseriting. You can use it in GSSA paper. Even in ethics also you can use this as a case study as well. Okay, so these learned points. Now let us move to the next news article discussion. Take a look at this news article. It reports that Peru has closed its world famous tourist destination of Machu Picchu for tourists. The decision has been taken by the Peru government after a series of political protest which has engulfed the whole country. So this is what is given in this small article. In this context let us learn few facts about Peru's geography in Prillam's perspective. See Peru is a coastal nation located in the western margin of the continent of South America. Okay, I hope you can see that in the image given here. You can see that Andes mountain is located near the western part of this country. You note that this Andes mountain is the longest mountain range in the world. It also acts as a barrier for the wind which are flowing from the ocean. As a result of it, place is located to the east of it or in the rain shadow condition. The famous desert of Atacama is located in the rain shadow region of Andes mountain. Now that Atacama is the driest place located on the earth. It receives only negligible amount of rainfall. Due to very little number of clouds present here, Atacama desert also acts as the perfect place for star gazing. Here also note that the famous Lithium Triangle is located adjacent to Atacama desert. The term Lithium Triangle denotes the areas near Atacama desert where extensive quantities of Lithium ore is mined. The countries present in the Lithium Triangle are Argentina, Bolivia and Chile. See this Lithium is very much needed for the manufacture of Lithium ion batteries. Since we are moving towards a renewable world, this Lithium mineral becomes important. So make a note of the point which I discussed till now and this is about the physical features of Andes mountain and the regions present adjacent to it. Now moving on to see the other physical features of the country of Peru. See the famous Titicaca lake is present right on the border between Peru and Bolivia. This lake is often called the highest navigable lake in the world. By volume of water and by surface area, it is also the largest lake present in the continent of South America. So this is about the Lake Titicaca. So now coming to the nations bordering Peru. See from the map provided here, you can see that Ecuador, Colombia, Brazil, Bolivia and Chile are the nations bordering Peru. Here note that due to the humboldt cold current which passes near the coast of Peru there is a huge upbuilding of nutrient rich cold water along the Peruvian coast. This phenomenon makes Peru one of the largest fishing nations in the world. Now let us see few points regarding the place of Machu Picchu which is located in Andes inside the territory of Peru. See this Machu Picchu is a hill settlement built by the Inca Empire. Inca's were a group of people who ruled Ecuador, Peru and Chile during the medieval times. Machu Picchu due to its picturesque structures has become a tourist attention lately. But due to the widespread protest, this structure was now being closed for tourists to ensure their safety. I hope you could learn few new facts from this news article discussion. So with these learnt points, now let us move on to the next news article discussion. Now take a look at this news article. It says that the constitutional conduct group which includes nearly 100 farmer civil servants has written a letter to President Draupadi Murmo. They are opposing the government's push for a mega infrastructure project on the great Nicobar Island. Last November, the Union Environment Ministry gave a clearance for the diversion of 130.75 square kilometers of forest in Great Nicobar Island. Now this is for a 72,000 crore project that includes a transshipment port and airport, a power plant and a green field township. Now that this is one of the largest single forest diversion in recent times. So this is the reason why former civil servants have written a letter to the President. They requested the President to advise the central government to immediately stop the commencement of destructive projects in Great Nicobar. They highlighted that the project threatens to displace the extremely vulnerable Champagne tribe as well as threatens the ecology of the island. So this is the crux of the news article given here. Now taking this as an opportunity, let us understand the role of civil services in a democracy. It is a very important topic in the general studies. And the syllabus relevant to this news article is highlighted here for your reference. You can go through it. So first of all, now we shall see in brief about the civil service in India. See civil service is essential for the functioning of the government. The civil service has been regarded as the steel frame of administration in India. The civil service refers to the body of government officials who are empowered in civil occupations that are neither political nor judicial. See the concept of civil service was prevalent in India from ancient times. Know that the Maurian administration employed civil servants in the name of Adyaksas and Rajukas. Then the concept of civil service again came into prominence when the British started ruling India. They devised a framework to hold the territories of India and they created the much coveted Indian civil services. Many changes have taken place in Indian civil services since Lord Cornwall is introduced it in India. The main motive behind the creation of the Indian civil services is that it is to foster the idea of unity in diversity. No matter what is the political scenario and turmoil affecting the country, the civil service was expected to give continuity and change to the administration. The Indian civil service is also giving its continuous support to the nation. And with this understanding let us learn about the role of civil services in a democracy. See in a democracy the civil services play an important role in the administration, policy formulation and implementation. The civil services are taking the country forward towards progress and development. As we all know India is a constitutional democracy and it is functioning within its three pillars that is Legislature, Executive and Judiciary. Each of these three pillars play a defined role in our democratic setup and they are involved in the governance of the country. For a successful development and smooth functioning in India, our founding fathers of the nation had the foresight to create the necessary institutional framework for governance. So they created a provision for civil services in the constitution which made the civil servants the permanent part of the executive. Okay. Apart from this there are many roles of civil services. We will see them one by one. Firstly civil services form the basis of government. See if there is no civil service then there is no effective administration in the country. So the foremost role played by the civil services is that the administration of the country along with political executives. Okay. Then the second main role is implementation of laws and policies. See the civil service officers are mainly responsible for implementing the laws and they only execute the policies framed by the government. Thirdly the role of policy formulation. See the civil service officers are chiefly responsible for policy formulation. They advise the ministers in policy formulation and they also provide facts and ideas for drafting the policies. Fourthly the civil services are acting as the stabilizing force. See during political instability in the country the civil service offers stability and permanence in the administration of the country. As we all know the government may change from time to time as per the people's wish but the civil services are a permanent fixture where they provide a sense of stable and continuous administration for the welfare of people. Fifthly the civil services are acting as the instruments of social change and economic development. As I already said civil service officers are responsible for successful policy implementation. This will lead to positive changes in the lives of ordinary people. The civil service officers ensure that the goods and services reach the intended beneficiaries without any delay. That is the task of actualizing schemes and policies falls with the officers of the civil services. Sixthly the civil service is offering welfare services. The civil services are offering a variety of welfare schemes like providing social security, then the welfare schemes to the weaker and vulnerable section of the society, then old age pensions, poverty, elevation and so on. Seventhly the role of civil services in developmental functions. The civil services perform a variety of developmental functions like promoting modern techniques in agriculture, then promoting the industry trade and banking functions, then bridging the digital divide and so on. Now finally the role of civil services in administrative adjudication. See the civil service officers also perform quashy judicial services. They help in settling disputes between the government and the citizens. They are doing this with the setup of adjudicating tribunals. Okay, so these are all some of the basic points that you have to remember about civil services and their role in democracy. Make note of all these points. It will be very useful as a civil servant for you in any point of your life. Okay, so with these learned points now let us move on to the next news article discussion. Now take a look at this news article. It talks about the depth liabilities of Tamil Nadu government. The article says that Tamil Nadu has a total state development loan liability of rupees 4.73 lakh crore. The breakup of different maturity periods of the loans taken are also given. Here note that nearly 45% of the outstanding market borrowings of Tamil Nadu are going to come up for repayment in the next 5 to 10 years. So this is the crux of the news article given here. In this context let us learn about the term state development loans. Have you ever heard about this term? We will see about that today. Just like an individual state governments in India also run their budgets. Sometimes a state expenditure may become higher than the revenue generator. This situation leads to a fiscal deficit. To address this fiscal deficit only state development loans or SDLs as bonds are issued by the state governments. Here each state can borrow up to a set limit by the union government. This fiscal year union government has set a limit for borrowing by the states at 4% of gross state domestic product. Here note that states were allowed to borrow 0.5% higher pertaining to implementing power sector reforms. So this is all about the current limit set by the union government for states to borrow. The SDLs service their interest at half year intervals and repay the principal amount on the maturity date. They are also generally issued for 10 years. So this is all about the basics of SDLs or state development loans. Now moving on to see the managing authority of SDL. Here note that RBA manages the SDL issues. RBA also make sure that the SDLs are served by monitoring payment of interest and principal. Like the government bond market SDLs are also traded electronically. The participants mainly include banks, mutual funds, insurance companies, Provident funds and others. Now remember SDLs are one of the most liquid instruments that can be brought and held for the long term. Generally the coupon code on SDL or marginally higher than those of DOI sex issued for the same maturity. Now before ending this discussion let us briefly see about the borrowing done by the union government. See borrowings by the union government can be divided into two. One is the treasury bills and the other is the dated securities. Note that the treasury bills are short term instruments for borrowing while the dated securities are long term instruments. T-bills are used as an instrument to borrow money for a period of less than a year. On the other hand dated securities are used by the union government to borrow money with the maturity period of more than a year. Generally dated securities are in the range of maturity from 5 years to 40 years. So this is all about the basics of borrowings done by the union government. So with this let us conclude this discussion and take up the next news article discussion. This news article talks about the new guidelines issued by the Directorate General of Civil Aviation, DGCA regarding the work timing of air traffic controllers. Previously, AII has asked for a relaxation in work timing for air traffic controllers in airports with fewer flights. But this proposal had been turned on by the DGCA. So in this context let us understand few details about the Airports Authority of India which is in short called as AII. See the Airports Authority of India AII was constituted by an act of parliament called the Airports Authority of India Act 1994. It came into being in 1995 by merging erstwhile International Airports Authority and International Airports Authority of India. The merger brought into existence a single organization interested with the responsibility of creating, upgrading, maintaining and managing civil aviation infrastructure both on the ground and airspace in the country. Know that AII is a Mini Ratna category 1 public sector enterprise. At present AII manages 137 airports which include 24 international airports 10 customs airports and 80 domestic airports and 23 domestic civil enclaves at different airfields. Your civil enclaves is nothing but an area allotted at an airport belonging to the armed forces. AII also provides for air navigation services over 2.8 million square nautical miles of air space. Apart from this AII also provides Air Traffic Management Services, ATMS over entire Indian airspace and adjoining ocean areas. This is done with ground installations at all airports and 25 other locations to ensure safety of aircraft operations. Know that Air Traffic Management comprises 3 main services. They are Air Traffic Services, ATS, Air Traffic Flow Management, ATFM and Air Space Management ASM. We will see about all of them one by one. Here Air Traffic Services focuses on ensuring safety and orderly traffic flow as well as providing the necessary information to flight crews. ATS is mostly performed by air traffic controllers. Their main functions are to prevent collisions by applying appropriate separation standards and issue timely clearances and instructions that create orderly flow of air traffic. If you can recall today's article report about the new guidelines issued by the Directorate General of Civil Aviation, DGCA regarding the work timings of air traffic controllers. So now moving on to Air Flow Traffic Management Its primary objective is to regulate the flow of aircraft as efficiently as possible in order to avoid the congestion of certain control sectors. Here supply and demand are managed by imposing various restrictions on certain traffic flows. Now moving on to Air Surface Management. Its purpose is to manage airspace as efficiently as possible in order to satisfy its many users both civil and military. Have a look at this diagram to understand ATMS in detail. Now finally let us discuss in brief about the main functions of AI. The main functions of AI is designing development, operation and maintenance of international and domestic airports and civil enclaves. Next function is the control and management of the Indian airspace extending beyond the territorial limits of the country. AI is also involved in construction, modification and management of passenger terminals, then development and management of cargo terminals and etc. Some of other functions of AI is given here for your reference. You can just pause the video and go through it. So these are all some of the important points that you have to remember about AI or Airports Authority of India. So with these learnt points now let us move on to the next news article discussion. Now take a look at this news article. This news article is taken from the Hindu newspaper dated 14th January 2023. The news article says that more than 900 street food vendors who are part of food delivery platforms like Swiggy are a part of Prime Minister Street vendors Atmanirbar Nidhi which is in short called as PM Swannidhi scheme. So this is about the news article given here. In this context let us discuss about the PM Swannidhi scheme. As I already said PM Swannidhi stands for PM Street vendors Atmanirbar Nidhi. As you are aware Atmanirbar means self-reliance and Nidhi means fund or also loan in this context. So the scheme is aimed at street vendors. But why it is because street vendors represent an important part of the urban informal economy. Think about it who is the first person you see if you come outside the railway station of any major city in India apart from auto wallas street vendors right. So street vendors play an important role in the urban informal economy. In addition to this they also play a significant role in ensuring availability of the goods and services at affordable rates to city dwellers. If you want to know the true importance of street vendors you must try asking about them to any civil service aspirant living in Rajendra Nahar or Ananahar. You must ask a person who is trying to get through the month with a tight budget. Without street vendors the aspirants would not be able to survive in Delhi or Chennai. So now coming back the COVID-19 pandemic and the associated lockdowns have adversely impacted the livelihoods of street vendors. They were cash strapped due to the lockdown. To revive their business the street vendors needed credit. To address their need for credit this scheme was introduced during the lockdown period in June 2020. So who is the street vendor or hawker under the scheme? See any person engaged in vending of goods or services to the public in a street, food path payment etc are called street vendors or hawkers. The goods supplied by them include vegetables or fruits ready to eat street food eggs, textile, books or stationery etc and the services includes barbershops cobblers etc. Now remember the scheme was launched by Ministry of Housing and Urban Affairs It is a central sector scheme that is it is fully funded by this Ministry of Housing and Urban Affairs. Small Industries Development Bank of India which is in short called as SIDB will be the implementation partner of the Ministry for Scheme Administration ok. Now when we talk about the objectives of the scheme firstly its objective is to provide working capital loan up to rupees 10,000 also to incentivize regular repayment. See the working capital loan has a tenure of 1 year and to be repaid in monthly installments. For this loan no collager will be taken by the lending institutions and on timely or early repayment of loans the vendors will be eligible for the next cycle of working capital loan with an enhanced limit ok. It also has the objective to reward digital transactions. The scheme will incentivize digital transactions by vendors through cash back facility. They can get a monthly cash back in the range of rupees 50 to 100 according to different criteria as well ok. Additionally an interest subsidy at 7% on timely or early repayment of loan is available. So the scheme will help to formalize street vendors with these objectives and will open up new opportunities through this sector and help them to move up the economic ladder. So if you ask me who are all eligible specifically the scheme is available to all street vendors engaging in lending in urban areas as on or before March 24, 2020. The street vendors surrounding very urban or rural areas are also eligible. Now moving on to the next question who can lend. Scheduled commercial banks, regional banks, then small finance banks, cooperative banks, then NBFCs, microfinance institutions and self-help group banks which are established in some states or union territories etc. They can also lend ok. Now finally when the scheme was implemented in 2020 the government planned to discontinue it by March 2022. But right now the scheme has been extended to December 2024. So that is all regarding this news article discussion. In this news article discussion we saw in detail about this PM Swannidhi scheme. See there might be a preliminary question regarding the scheme or luckily if you did not get a question from this topic you can beautifully quote this scheme as an example in your mains answer writing ok. So these learnt points now let us move to the next part of the news article discussion which is the preliminary practice question discussion. Now look at this first question is about Airports Authority of India. Two statements are given statement one it is a statutory body. See this statement is correct we saw that in the news article discussion itself right. It is a statutory body formed under the Airports Authority of India Act of 1994. Now the second statement says that it is the sole regulatory body governing the safety aspects of civil aviation in India. See this statement is actually incorrect. Airports Authority of India is not the regulatory body for civil aviation in India. The regulatory for civil aviation in India is Directorate General of Civil Aviation. We have covered in detail about the Directorate General of Civil Aviation in January 11th in the newspaper analysis. I request you to go and watch that video to have a clear understanding about that. So here the second statement is actually incorrect. So the correct answer for the question is option B2 only. Now moving on to the second question. This is a three statement question. Statement one the Reserve Bank of India Managers and Services Government of India Securities but not any State Government Securities. See this statement is actually incorrect. Flotation of State Government Loans which is also known as State Development Loans or done by RBI. As per the Reserve Bank of India Act 1934 the RBI may by agreement with any State Government undertake the management of the public debt of the State. So according to that the RBI has entered into agreement with 29 State Governments and one Union Territory which is Puducherry. And it is for management of their public debt. So the first statement is incorrect. Now the second statement says Treasury bills or issued by Government of India and there are no Treasury bills issued by the State Governments. This statement is actually correct. In India the State Government only issues both Treasury bills and bonds or data securities. While the State Government issue only State Development Loans ok. Now the third statement says that Treasury bills offer or issued at a discount from the par value. See this statement is also correct. T-bills don't have any interest rate. They are issued at discount and redeemed at par. Let me simplify it for you. Let's take a T-bill A. This T-bill is issued by the Union Government at a value let's say 100 rupees. But at the end of the time period of the T-bill the Union Government will pay amount more than 100 rupees. This amount will be fixed at the issuance of the T-bill itself ok. So this is what we call by issued at discount from the par value ok. So the correct answer for this question is option C 213 only because the first statement is incorrect. Now moving on to the third question which among the following are the reasons for increase in number of street vendors in urban areas. Statement 1 lack of employment generation formal sector. Statement 2 rural poverty. Statement 3 lack of skills to gain employment in formal sector and fourthly increasing real estate cost in urban areas. So you have to choose the correct answer using the quotes given below. Option A 1 and 4 only. Option B 213 only. Option C 1213 only and option D123 and 4. See the correct answer for the question is option D123 and 4. All the statements are actually correct. All these conditions lead to increase in number of street vendors in urban areas ok. Now moving on to the question this question about lithium triangle is the question for you today. If you have listened to our video you can easily answer to this question. So pose the correct answer in the comment section. So the question displayed here is the main practice question for you today. Just go through the question, write an answer and post it in the comment section. So with this we came to the end of the news article discussion. 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