 A very good evening aspirants, we are happy to announce that Shankar IAS Academy is conducting a Free All India Prelims Mark Test. As you can see, the test will be conducted across 13 centres both in online and offline mode. The test starts on 15th of May 2022. Use this wonderful opportunity and check your progress with our Free All India Prelims Mark Test. The link for the registration is given in the description. Kindly make use of it. Welcome to Hindu News Analysis brought to you by Shankar IAS Academy. Today is 7th of May 2022. The list of articles we are going to discuss today is displayed on the screen. You can go through it. Let's start our discussion with this previous year preliminary question. Now look at this question. This was asked in the preliminary examination 2019. Let me read out the question. In the context of any country, which one of the following would be considered as part of its social capital? Option A, the proportion of literates in the population. Option B, the stock of its buildings, other infrastructure and machines. Option C, the size of population in the working age group. And option D, the level of mutual trust and harmony in the society. See, this is a very easy question. With some basic understanding and common sense, we can solve this question. See, look carefully here. Here option B, it refers to physical capital. And option A and C, these are examples of human capital. This we have read in our geography NCRT's right. So without knowing much about this option D, we can easily guess that this is the correct answer. Now we will see the explanation. See, here physical capital refers to assets such as building, machinery and vehicles which are owned and employed by an organization. And the term human capital refers to the economic value of a worker's experience and skills. Human capital includes assets like education, training, intelligence, skills, health, etc. See, population becomes human capital when there is investment made in the form of education, training and medical care. In fact, human capital is the stock of skill and productive knowledge embodied in them. Investment in human resource via education and medical care can give high rates of return in future. This investment of people is the same as investment in land and capital. And investment in education is considered as one of the main sources of human capital. Like education, health is also an important input. Now coming to the main part of the question, which is social capital. See, social capital broadly refers to those factors of effectively functioning social groups that include such things as interpersonal relationships, a shared sense of identity, a shared understanding, shared norms, shared values, trust, cooperation and reciprocity. The term human capital was first used by L.J. Honeyfan, a state supervisor for rural schools in Virginia in 1960. He used it in the context of the community's involvement in successful running of schools. As a concept, it received entry in social science literature in 1980s. Soon it assumed an economic connotation and came to be accepted as a factor of production in the development theory. And it refers to those institutions, relationships and norms that shape the quality and quality of society's interaction. As I said, it consists of trust, mutual understanding, shared values and behavior that binds together members of community and make cooperative action possible. So the basic premise is that such interaction enables people to build communities, to commit themselves to each other and to knit the social fabric. A sense of belonging and the concrete experience of social networking can bring great benefits to people. So these are the basic facts about social capital. So here the correct answer is option D. See this article here. It says that Ambatur lake, a major water body in Chennai, continues to be polluted with untreated sewage from the neighboring areas. According to the article, lack of infrastructure to collect and treat sewage in localities around the water body has led to an increase in pollution. And according to the citizens group, that is Ambatur water bodies protection movement, the lake had shrunk in size to 350 acres due to encroachment and urbanization over the years. And this is the crux of the article given here. In this context, let us learn about wastewater generation in India and its management. But before that, the syllabus relevant to this article is highlighted here for your reference, just go through it. Now let us start our discussion. See, India is rich in water resources, having a network of as many as 130 rivers and vast alluvial basins to hold plenty of groundwater. India is also blessed with snow-capped peaks in the Himalayan range which can meet a variety of water requirements of the country. However, with the rapid increase in the population of the country and the need to meet the increasing demands of irrigation, domestic and industrial consumption, the available water resources in many parts of the country are getting depleted and the water quality has deteriorated. So in India, water pollution comes from three main sources. One is domestic and industrial sewage and second is chemical effluents and third is a runoff from agriculture. So first of all, what is this sewage? See sewage is the wastewater containing both liquid and solid waste produced by human activities from homes, industries, hospitals, offices, etc. Know that sewage is more than 99% water but the remaining material contains solid material, ions and harmful bacteria. With this basic understanding, now let us see the wastewater generation in India. See, a report has been released by Central Pollution Control Board. The CBCB report has been compiled on the basis of information received from the State Pollution Control Boards. And according to the report, sewage treatment plants that is STPs in India are able to treat a little more than a third of the sewage generated per day. The report also says that India generated 72,368 million liters per day whereas the installed capacity of STPs was just 31,841 million liters per day that is it is under 44%. But as per the 2001 census, all class 1 cities and class 2 towns together generated an estimated 29,129 million liters per day sewage. See how much the generation increased over the time. See, the wastewater generation is because of the daily household activities and it comes from toilets, showers, clothes washers, dishwashers, etc. The contaminants include fecal matter, urine, soaps, detergents, food particles, hair, rags, paper, toys and anything else that is disposed in a drain. Know that a person creates an average of 60 to 100 gallons of wastewater every day. And know that sewers are a network of pipes that bring the sewage to the treatment plant for treatment. Okay, now having seen the generation, now let us see about the treatment. See, treatment is the continual process of removing the contaminants from the wastewater and then processing the removed contaminants into a product that can be safely recycled. As we already saw, sewage treatment in the sewage treatment plants that is STPs. See, there are three main stages of wastewater treatment process. They are known as primary, secondary and tertiary water treatment. We will see this in detail. In some applications, more advanced treatment is required known as quaternary water treatment. Each of these stages tackles different pollutants with water becoming cleaner as it moves through the phases. And during the primary treatment, wastewater is temporarily held in a settling tank where heavier solid sink to the bottom while lighter solid floats to the surface. These large tanks are also often equipped with mechanical scrappers that continually drive collected sludge in the base of the tank to a hopper which pumps it to sludge treatment facilities. Here, the sludge is the matter that is settled in the bottom of the tank. And the secondary treatment of wastewater works on a deeper level than primary and is designed to substantially degrade the biological content of the waste through aerobic biological process. And completing secondary wastewater treatment allows for safer release into the local environment, reducing common biodegradable contaminants down to safety levels. Just know that different methods such as biofiltration, aeration, oxidation ponds are used to degrade the biological content. These processes encourage the growth of aerobic bacteria. And this bacteria helps to break down the contaminants in the water effectively cleaning it. Now, coming to tertiary wastewater treatment. See, the aim of tertiary wastewater treatment is to raise the quality of the water to domestic and industrial standards or to meet specific requirements around the safe discharge of water. In the case of water treated by municipalities, tertiary treatment also involves the removal of pathogens which ensures that water is safe for drinking purpose. And see this model here. This is the STP. It contains raw water collection tank, aeration tank, sludge settling tank, carbon filter, etc. In this, we can also see sludge drying bed and the dried sludge is used as manure. See, as we all know, sewage is rich in organic matter so that it can be used as manure. Now, why should the sewage or wastewater be treated? Friends, see the most immediate effect of waste water and the environment is when it contributes towards the contamination and destruction of natural habitats and the wildlife that live in those habitats. Apart from that, wastewater is one of the worst sources and carriers of diseases. And according to a report from the World Health Organization, more than 3.4 million people die each year from waterborne diseases. And considering the consequences, it is crucial to treat sewage before letting it out into the environment. See, in the article also, this is the concern. Ambatur lake in Chennai is polluted with untreated sewage water. And this release of untreated wastewater will deteriorate the quality of water and it causes many health concerns for the persons who comes in contact with the lake water. Now, let us see what are the loss and regulations that are there to manage the wastewater in India. See, in 1974, the Water Prevention and Control of Pollution Act, simply the Water Act, was passed by the parliament as the first step to tackle the menace of liquid effluents from industry. Since water was a state subject, it requires states to adopt similar legislation and take necessary steps. Boats for the prevention and control of water pollution were set up in each state to implement the Act and to enforce effluent standards. And accordingly, Central and State Pollution Control Board regulates the sewage treatment plans and checks the standards of the treated water. Know that in India, five states and union territories which are Maharashtra, Gujarat, Uttar Pradesh, Delhi and Karnataka account for 60% of the total installed treatment capacity of the country. And Arunachal Pradesh, Andaman Nicobar Islands, Lakshadip, Manipu, Meghalaya and Nagaland have not installed sewage treatment plans. Also note that Chandigarh ranks first in terms of total sewage generator to what is actually treated. See, treating the wastewater has its own benefits. According to the report of the Central Public Health and Environmental Engineering Organization, treated sewage water can be reused for horticulture, irrigation, washing activities, inroads, vehicles and trains, firefighting, industrial cooling, toilet flushing and gardening. Having seen about these applications, now let's see some static sticks here. The proportion of the reuse of treated sewage is maximum in Haryana which is 80% followed by Puducherry, Delhi, Chandigarh, Tamil Nadu, Madhya Pradesh and Andhra Pradesh. See, these facts, you can very well use it in your main exam. And regarding the reuse of treated sewage water, the added benefit is that the reuse of treated sewage can decrease the water demand from aquatic sources like rivers, ponds, lakes, as well as groundwater sources. And we very well know that less consumption of raw water will help in conserving natural water resources according to CPCB report. So, that's all regarding this news article. What have we seen so far? In this article, we have discussed about wastewater treatment. First, we started with sewage. Sewage is nothing but the wastewater containing both liquid and solid waste produced by human activities from homes, industries, hospitals, offices, etc. And sewage is more than 99% water and the remaining material contains solid material, ions and harmful bacteria. Then we have seen that the wastewater generation is because of the daily household activities and it comes from toilets, showers, clothes washers, dishwashers, etc. The contaminants include fecal matter, urine, soaps, detergents, food particles, paper and anything else that is disposed in a drain. And a person creates an average of 6200 gallons of wastewater every day. Then we have seen about water treatment. Treatment is the continual process of removing the contaminants from the wastewater and then processing the removed contaminants into a product that can be safely recycled. There are three main stages of wastewater treatment process which are primary, secondary and tertiary water treatment. Then we have discussed about the laws and regulations that are there to manage the wastewater in India. In that we saw the water act of 1974 which was the first step to tackle the menace of liquid effluents from industry. Then we have seen about the benefits of treating the wastewater. What are those benefits? Treated sewage water can be reused for horticulture, irrigation, washing activities, firefighting, industrial cooling, toilet flushing and gardening. And it can decrease the water demand from aquatic sources like rivers, ponds, lakes as well as groundwater sources. So with these points in mind, let us move on to the next news article discussion. See this news article here. This news article talks about the ISRO's unique goal for Venus mission. So in this context today let us revise some basic concept about the planet Venus and then we will discuss few facts about the ISRO's mission on Venus. So first of all what is a planet? See some celestial bodies do not have their own heat and light. They are lit by the light of the stars. Such bodies are called planets. The word planet comes from the Greek word planetai which means wanderers. The earth on which we live is a planet. Where does it get the heat and light? It gets all its heat and light from the sun which is our nearest star. See the most recent definition of a planet was adopted by the International Astronomical Union in 2006. It says a planet must do three things. First, it must orbit a star. Second, it must be big enough to have enough gravity to force it into a spherical shape. And third, it must be big enough that its gravity cleared away any other objects of similar size near its orbit around the sun. These are the three conditions for a planet. See like our earth there are seven other planets that get heat and light from the sun. Who are they? We very well know that there are eight planets in our solar system. In order of their distance from the sun they are Mercury, Venus, Earth, Mars, Jupiter, Saturn, Uranus and Neptune. Today as I said we are going to discuss about the planet Venus. See Venus is the second planet from the sun. Also note that it is Earth's closest planetary neighbor. See if you look at the image of the solar system you can observe that Venus is one among the four inner planets. Hence it is called terrestrial planet. The surface of Venus is rusty colored and it is with intensely crunched mountains and thousands of large volcanoes. And Venus is often called Earth's twin. Do you know why? It is because it is similar in size and density. However these are not identical twins because there are radical differences between the two planets. See even though Mercury is closer to the sun Venus is the hottest planet in our solar system. Do you know the reason? See the first reason is Venus has a thick toxic atmosphere filled with carbon dioxide. And the second reason is it is constantly covered in thick yellowish clouds of sulphuric acid. Due to these two reasons Venus traps heat causing a strong greenhouse effect. See the surface temperatures on Venus are about 900 degree Fahrenheit which is hot enough to melt lead. And another big difference between Earth and Venus is that Venus rotates on its axis backwards from east to west. This means that on Venus the sun arises in the west and sets in the east. This is opposite to what we experience on Earth right. Now having seen about the basics let us see few facts about the ISRO's Venus mission which is called Shukrayan 1. See to explore the brightest planet in the solar system the Indian space research organization that is ISRO has announced project Venus. It is scheduled for launch by December 2024. This mission's objective will be to study the Venusian atmosphere which is toxic and corrosive in nature as clouds of sulphuric acid covers the planet. See the spacecraft can be placed in the orbit of Venus with least propellant. This is because of its close proximity with the Earth. Okay see the Venus mission is said to focus on investigation of the surface processes shallow subsurface stratigraphy along with active volcanic hot spot and lava flows the structure composition and dynamics of the atmosphere. Also it will focus on solar interaction with the ionosphere of the Venus. So that is all regarding this news article. What have we seen so far? We have seen three conditions for a planet that is it must orbit a star and it must be big enough to have enough gravity to force it into a spherical shape. And the third condition is that it must be big enough so that its gravity cleared away any other objects of a similar size near its orbit around the Sun. And we have seen that Venus is often called Earth's twin because of its similarity in size and density. And we have seen that Venus rotates on its axis backward from east to west. And then we have seen about ISRO's Venus mission which will study the Venusian atmosphere. So that's all regarding this news article. Now we will move on to next news article discussion. Now look at this news article. This news article mentions that the retail portion of LIC's IPO has been fully subscribed. See some of you might have even subscribed I guess. So to understand what does this means let us see what is an IPO. See we have covered IPO briefly in many of our daily news analysis videos. There we have simply seen the definition so far. So today we will discuss this in detail. See IPO stands for initial public offering. It is a type of a public issue. So what is a public issue? Basically an issue is a set of securities that a company or a government offers for sale. The entity making an issue is referred as issuer. In India the issues made by Indian company can be classified as public issue, rights issue, bonus issue and private placement issue. Today let's focus only on public issue. Here the issue or offer of shares or convertible securities is made to new investors for becoming a shareholder of the issuer. Just know that when an issue of shares is made by an issuer to its existing shareholders on a particular fixed date then it is called rights issue. So the basic difference is in case of public issue the issue of shares is made to the new investors. The investors could be retail individual investors, national institutional investors or qualified institutional buyers. Simply know that RII means an investor who applies or bids for securities for a value of not more than rupees 2 lakhs. A qualified institutional buyers refers to schedule commercial banks, public financial institutions, mutual fund houses and foreign portfolio investors. And those investors who do not fall within these two categories are called NII's that is non-institutional investors. See this public issue is further classified into two types. They are initial public offer and further public offer. In case of initial public offer an unlisted company comes into play. Unlisted company means a company whose shares are not listed on a stock exchange. When this unlisted company makes the issue of shares for sale for the first time to the public it is called an IPO. This issue of shares could be a fresh issue of shares or fresh convertible securities or it could be even an offer of its existing shares or existing convertible securities for sale or it could be both. The fact to remember is it is offered for the first time to the public. That is why it is termed as initial public offer. And through this the company goes public. See this entire process involves various intermediaries like merchant banker, bankers to the issue, underwriters and registers to the issue etc. All these intermediaries are registered with SEBI and are required to abide by the prescribed norms to protect the investors. Particularly RTI that is registers to the issue handles the operation of the public issue on behalf of the issuer like processing of application forms, allotment of securities etc. But what is the purpose behind this? See we saw that the company is unlisted right. So an IPO paves way for listing and trading of the issuer's shares on the stock exchange. This enables the investor to buy securities from or sell securities to other investors in the secondary market. And another purpose is to raise fresh capital in the primary market for operations. See capital is raised as the shares are traded publicly in the primary markets. This is because prior to conducting an IPO a company is considered private. So it faces restrictions on to whom it can sell its securities and therefore they cannot sell securities on public exchanges. This limits their ability to raise capital. But when they conduct an IPO they are publicly listed. So they can sell securities on public exchange and can raise money. Now we will see about FPO and how FPO differs from an IPO. See FPO is also called as follow on offer. That is here an already listed company makes either a fresh issue of shares to the public or an offer of sale to the public. Overall IPO refers to the process where for the first time the stock of an unlisted private company or a company owned by the government is offered to the public in the primary market. So what are the benefits of an IPO? See firstly it is a way of making quick and good money. And secondly it provides access to investment from the entire investing public. Third it is the largest source of fund with long or indefinite maturity for the company. And fourthly it is an exist strategy for the company's founders and early investors realizing the full profit from their private investment. And lastly it increases the company's exposure prestige and public image which can help the company's sales and profits. Now a company wanting to raise capital from the public is required to prepare an offer document. Offer document is the document which contains all the relevant information about the company, promoters, projects, financial details, objective of raising the money, terms of the issue etc. This offer document is used for inviting subscription to the issue being made by the issuer. Also note that in case of a public issue that is IPO or FPO the offer document is called as prospectus. So a prospectus of a company in an IPO has all relevant details regarding price and number of shares being offered. Such information and disclosures enables the potential investors to make an informed decision. But who fixes the price of these issues? Does Sebi play any role? Actually no. Note that Sebi does not play any role in price fixation. The issuer in consultation with the merchant banker on the basis of market demand decides the price. But remember that there are two types of issues based on pricing. They are fixed price issue or book built issue. See when the issuer at the outlet that is at the beginning itself decides the issue price and mentions it in the offer document it is called fixed price issue. But when the price of the issue is discovered on the basis of the demand received from the prospective investors at various price levels it is called book built issue. Here a predefined price bracket is mentioned and not the fixed price. Also remember after completing legal formalities the issuer company issues advertisements of the IPO in English, Hindi and regional language newspapers. After this only the issue is open to public for subscription. But can anyone make an IPO? Definitely not. For this Sebi has laid down certain entry norms for entities. There are two routes suggested for the entry. One is the profitability route and these are the norms that has to be satisfied by the issuer. And the other route is suggested for companies that does not satisfy these above norms. It is called QIB route that is qualified institutional bias route. In this route the issue shall be through the way of book building issue. So finally are all the investors allotted same amount of shares. Here also the answer is no. It varies according to the type of pricing and entry norms. That is the percentage of the net offer to the public varies according to investors as you can see here. So with these knowledge let us understand the news. As you are aware recently India's biggest ever IPO opened. It was the IPO of Life Insurance Corporation which is LIC. It opened for public subscription from 4th May. With this IPO the government is looking to diverse its 3.5% stake in the LIC by selling more than 22 crore shares. So LIC IPO is an exist strategy for the government through which it aims to raise around 21,000 crore rupees. Plus know that LIC's IPO is a book built issue following the profitability route. So there should be a price bracket. It is kept at rupees 902 to 949 per equity share in LIC IPO. Also from the table you note that half of the shares from the net issue are reserved for QIB, 15% reserved for NIIs and the rest 35% for RIIs. Now the news is that RII portion that is 35% of the net issue has been fully subscribed and the QIB and NII portions are yet to be fully subscribed. I hope we simplify the news for you. So that's all regarding this news article. What have we seen so far? We have seen about IPO that is when an unlisted company makes the issue of shares for sale for the first time to the public it is called an IPO. That is shares are offered for the first time to the public. Then we have seen about FPO which is called further public offer or follow on offer. Here an already listed company makes either a fresh issue of shares or convertible securities to the public. And we have also seen that SEBI does not play any role in price fixation. The issuer in consultation with the merchant banker on the basis of market demand decides the price. Then we have discussed about this news article in detail. With this learning let's move on to next news article discussion. See this article here. It says that Mr. Kottabaya Rajabakshya has revoked the emergency in five days ahead of a possible vote on it in parliament. The decision came a day after hundreds of youth gather outside the parliament in addition to ongoing protest near the presidential secretariat and prime minister's official residence. And this is the crux of the article given here. Let us use this opportunity and brush up the static part which is the emergency provisions in India. See there are three types of emergencies under constitution of India. The first one is national emergency. See the national emergency is declared due to war, external aggressions or armed rebellion. And article 352 constitutes national emergency. And the second one is state emergency. It is due to the failure of constitutional machinery in states and this is popularly known as presidential rule. Know that article 356 constitutes state emergency. And the third one is financial emergency. It is due to a threat to the financial credibility of India. And article 360 constitutes financial emergency. See in this discussion we will see more about national emergency. To start with article 352 says that if the president is satisfied that a grave emergency exists whereby the security of India or any part of the territory is threatened then he may declare emergency. Also note that the president shall not issue a proclamation of emergency unless the decision of the union cabinet has been communicated to him in writing. See every proclamation issued under this article should be laid before each house of the parliament and it may cease to operate at the expiration of one month unless before the expiration of that period it has been approved by resolutions of both houses of the parliament. That is nothing but both the houses of parliament has to approve the proclamation of emergency within one month otherwise it will cease to operate. And the proclamation so approved will be cease to operate on the expiration of a period of six months from the date of the passing. That is if approved by both the houses of the parliament the emergency continues for six months and can be extended to an indefinite period with the approval of the parliament for every six months. And the president shall revoke a proclamation issued if the house of the people that is a Lok Sabha passes a resolution disapproving or disapproving the continuance of such proclamation. And we have to know that a resolution of disapproval is different from a resolution approving the continuation of proclamation in two aspects. The first one is that is the resolution of disapproval is required to be passed by the Lok Sabha only while the resolution approving the continuation of proclamation needs to be passed by both houses of the parliament. And the resolution of disapproval is to be adopted by a simple majority while resolution approving the continuation needs to be adopted by a special majority. So that is all regarding this news article and national emergency with these key learned points. Let us move on to next part of our news article discussion which is preliminary practice question discussion. Look at the first question which of the following statements best describes an initial public offering. Option A, a listed company makes a fresh issue of shares to the public and option B, issue of convertible securities to existing investors for becoming a shareholder of the issuer and option C, stocks of unlisted government owned company is offered to the public in the primary market for the first time and option D both B and C. See here our correct option will be option C. See here statement A is incorrect. It would have been correct if it had mentioned unlisted company. Here it is mentioned as listed company so option A is incorrect. See option B it is also incorrect. It should be new investors not existing investors. So our correct answer is option C. Look at the second question consider the following pairs. Venus Express, Russia, Venera, Europe, Shukrayan, India which of the following pairs is or are incorrect. A 1 and 2 only, B 2 and 3 only, C 1, 2 and 3 only and D none of the above. See here the correct answer is option A that is 1 and 2 only. See we know that Shukrayan is India's mission to Venus. It is to be launched by ISRO before December 2024. So we very well know that pair 3 is correct. See and pair 1 and 2 both are wrong. See Venus Express it is a mission of European Space Agency and Venera Sirius is a series of unmanned Soviet planetary probes that were sent to Venus. Okay both are interchanged. Since the question demands incorrect pairs our correct answer will be option A 1 and 2 only. And look at this question consider the following statements with reference to national emergency. Article 356 deals with the proclamation of national emergency statement 2 the proclamation of emergency ceases to exist if it is not approved by both the houses of the parliament within six months. See this is a very easy question take it as a quiz find the answer and post it in the comment section. The main question is displayed here write your answer and post it in the comment section. If you like the video hit the like button post your comments and share the video with your friends and don't forget to subscribe Shankar IS Academy YouTube channel. Thanks for watching.