 Welcome to the Hindu News Analysis by Shankar IA's Academy, displayed at the list of news articles taken up for today's analysis, along with the page numbers of Chennai, Bengaluru, Delhi and Trivandrum editions. The handwritten notes in PDF format and the time stamping of all the news articles taken up for today's analysis will be available in the description section and also in the comment section for the benefit of the smartphone users. Let us now start our analysis. We shall be seeing about the recent monetary policy measures that have been taken by the Reserve Bank of India. So we'll be covering two news articles and one editorial as a part of this. Before going on to the topic, let us first understand what is meant by report rate. The term report rate denotes the repurchase option. It is the rate at which the Reserve Bank of India, which is the central bank of India, gives loans to the commercial banks. For the loans, the commercial banks will have to keep some security with the Reserve Bank of India. So the report rate can also be defined as the rate at which banks will buy back or repurchase these securities from the Reserve Bank of India at a later stage. How will this move help economic growth? Now a reduced report rate means the banks will get money at a lesser interest rate from the Reserve Bank of India. So this will increase the amount of money with the commercial banks. And the commercial banks can make use of these money for lending activities. So they will lend some money to the borrowers. Here the borrowers are nothing but the business houses or the business entities. So the banks will also reduce their lending rates. This reduced lending rate will result in more people and businesses taking more loans. So this will increase the supply of money and the business activity in the economy. And finally this will boost the economic growth. So these are the benefits of reducing the report rate. Now let us discuss the news articles and the editorial. Now the contents given in all these news articles and the editorial is more or less the same. Let us see them now. The Reserve Bank of India on 7th of August 2019 as reduced the report rate by 35 basis points or BPS. Now if you see this report rate is the key policy rate of the Reserve Bank of India. The report rate was reduced from 5.75% to 5.4%. So it is a reduction of 35 basis points or 0.35%. The Reserve Bank of India said that this reduction will help to tackle the deepening economic slowdown. Nothing but the economy is currently not really in a good position. So the reduction in the key policy rate will help in boosting the economy. Now if you see this time the Reserve Bank of India has gone for an unconventional way of cutting the rates. If you see usually the central banks cuts or raises the interest rates by a quarter percentage points. Not just the Reserve Bank of India which is the central bank of India but also other central banks across the world usually cut the rates by 25 basis points or in its multiples like 50 basis points, 75 basis points etc. But if you see this time 35 basis points has been reduced. So why this unconventional way of reduction? To this the Reserve Bank of India Governor has said that considering the economic situation, demand conditions and also the assessment of the Monetary Policy Committee, 25 basis points cut was inadequate and 50 basis points cut was too much excessive. So the Reserve Bank of India went for a suitable cut and hence they have cut at 35 basis points. If you see in the editorial also it is mentioned as RBA's Goldilocks cut. Goldilocks is generally a term where it is used to denote the average or mean which means neither too small or not too large so to have a balanced position. So the editorial is named as RBA's Goldilocks cut. If you see in April 2019 the Governor of the Reserve Bank of India had told in the IMF and World Bank meeting that the central banks in the emerging economies must move away from the conventional way of cutting rates by 25 basis points or its multiples. The RBA Governor said that this convention had resulted in spillovers from emerged to emerging markets. That means the change in bank rates in a developed country like USA will force the developing countries to adjust similar moves. Now you should know that the Monetary Policy Committee of the Reserve Bank of India takes decisions on fixing the report rates. If you see there are six members in this Monetary Policy Committee it also includes the Governor and the Deputy Governor of the Reserve Bank of India. And all six of them have voted for report rate cuts this time but two members have backed the 25 basis points cut. And if you see in this year 2019 so far four Monetary Policy Committee meetings have been done the months of February, April, June and now in the month of August. Totally 110 basis points have been cut. So it was 25 in the month of February 25 basis points in the month of April then 25 again in the month of June and now 35. So totally 110 basis points have been cut in this year alone till this month of August. So we can see that the economic slowdown is sharper. It is quite sharper than what RBA predicted before. So considering this economic slowdown the Reserve Bank of India has reduced the forecasted GDP growth in the current fiscal year. Now the current fiscal year or the current financial year means from April 2019 to March 2020. We can also see in the newspapers the term fiscal 2020 it means the current financial year. The RBA has reduced the GDP growth rate forecast from 7 percentage to 6.9 percentage. If you see the 7 percentage was predicted during the June Monetary Policy Review meeting. Now it has been downgraded to 6.9 percentage. And this rate cut is also associated with the inflation that is happening in the economy. If you see the Reserve Bank of India uses consumer price index to forecast the inflation. It is said that the CPI based inflation for the second half of the present financial year that is from October 2019 to March 2020 will be 3.5 to 3.7 percentage. And for the first quarter of the next financial year that is from April 2020 to June 2020 it is forecasted at 3.6 percentage. We have already discussed in depth about the consumer price index in our 13th June analysis. Kindly have a look at it for the subject clarity. Now considering all these factors the Reserve Bank of India went for an accommodative policy. Now if you see in an accommodative monetary policy the central banks reduces its key policy rates in order to make the money cheaper or we can tell that in order to make the money easily available in the economy. We have already discussed that the Reserve Bank of India had cut 110 basis points through its policy announcements in the year 2019. But the same has not happened with the bank. This is because the transmission by the banks to the lenders or the borrowers was just 29 basis points. It means that during the same time the banks have reduced their lending rates to the lenders or the borrowers by just 29 basis points. So the intention of RBI is to infuse money into the economy by cutting down its report rate was not achieved as the commercial banks did not do the same. In the news article it is mentioned that following the latest cuts by the Reserve Bank of India the State Bank of India has responded promptly with a 15 basis points cut in the marginal cost of funds based lending rate nothing but the MCLR. And it is also mentioned that the other commercial banks are also expected to follow the same. Now let us see about this MCLR. It is basically an internal reference rate for any commercial bank. MCLR refers to the minimum interest rate of a bank below which it cannot lend except in some cases allowed by the Reserve Bank of India. Next the Reserve Bank of India has also reduced the risk weight for the consumer loans to infuse more money into the economy. The risk weight is reduced from 125 percentage to 100 percentage but it is not applicable in case of credit cuts. Now risk weight as per RBI is the capital that is required to be set aside by the banks for giving loans. Now this is usually expressed as a percentage of the loan disbursed nothing but the loan given. So the financial institutions need to set aside this amount as assets and this reduction is from 125 percentage to 100 percentage it means that the banks compared to the earlier levels will now have to keep less amount with themselves for giving loans. So this move will increase the demands for individual personal loans and also vehicle loans. So the above measures such as the reduction in rapport rate then the banks reducing the MCLR then RBI reducing the risk weight for loans is all good for the non-banking financial companies. If you see the Indian non-banking financial companies are facing a liquidity crunch or the lack of money to give loans to the borrowers. So all these measures will give more freedom for the banks to give loans to the non-banking financial companies because now the money will be available with the banks and with this money they can lend some money to the non-banking financial companies. So these non-banking financial companies will further lend these money to the required borrowers. So this is expected to generate more demand and growth in the economy. But only these measures by the Reserve Bank of India cannot be considered enough in order to boost the economy it further needs support from the government side. So the government has to push for reforms by providing incentives in order to boost the investment in the country. In the news article which is about the interview that is given by the RBI Governor Mr. Shakti Khamtadas and also in the editorial the author of the editorial have told that the economy is facing both cyclical and structural problems. Now let us see what is meant by these cyclical and structural problems. Cyclical problems are the general ups and downs in every economy. Now if you see the measures like the policy rate cut then the reduction in the MCLR rates are some of the measures to resolve these cyclical issues the issues that keep happening again and again. The RBI Governor if you see he has accepted that there is room for structural reforms in the Indian economy. Now structural changes or structural reforms means the fundamental changes in an economy like making more investment friendly laws then giving more room for privatization and such measures. If you see the Reserve Bank of India Governor has said that for time being they are not going for the reduction or cut in the cash reserve ratio. Now what is meant by this cash reserve ratio? It is a minimum amount of total deposits that the commercial banks have to hold as reserves with the Reserve Bank of India. So they will deposit some amount of money with the Reserve Bank of India. Now this amount is determined by the Reserve Bank of India. If you see the present cash reserve ratio is four percentage. That means the banks have to maintain four rupees with Reserve Bank of India if they have a deposit of rupees 100. So this is the cash reserve ratio. So from this news article just know about the monetary policy committee then about the policy report rate cuts then terms like MCLR cash reserve ratio and why an unconventional method of rate cut has been followed this time that is 35 basis points cut has been followed this time. With this we come to the end of the discussion of this news article. Now have a look at the practice question. Let us move on to the next news article. For the past two three days we have been discussing about India's decisions and proposals regarding the state of Jammu and Kashmir. From the Indian side India's revoked article 370 which gave special status to Jammu and Kashmir. Then the bill has been passed to reorganize the territory of the state of Jammu and Kashmir into two union territories namely the union territory of Jammu and Kashmir and the union territory of Ladakh. So these were some of the actions that were taken by the Indian government in order to have a firm grip over the state of Jammu and Kashmir particularly to have a grip over the Kashmir body. Yesterday we also saw what was the reaction of China in this matter because if you see Jammu and Kashmir is not only a disputable territory between India and China but also between India and Pakistan. So the main dispute is between India and Pakistan because both the countries claim that Jammu and Kashmir belongs to them. So in today's news article we will be seeing about Pakistan's reaction to the Kashmir issue. As a first reaction to the developments in the Jammu and Kashmir from the Indian side Pakistan has expelled or removed the Indian High Commissioner to Pakistan. So Pakistan has told the government of India to withdraw its High Commissioner to Pakistan. The Indian High Commissioner to Pakistan heads the High Commission on India in Pakistan. If you see the High Commissioner is situated at Islamabad which is the capital of Pakistan. The High Commission is the diplomatic representation of the Republic of India in Pakistan if you see. So it serves as the official channel in Pakistan for the diplomatic and official relations. Then it also facilitates official interaction between India and Pakistan. As we saw that the High Commissioner is added by a High Commissioner. If you see this High Commissioner is the plenipotentiary representative of the President of India in Pakistan. Now we need to know what is meant by plenipotentiary. Plenipotentiary is a person especially a diplomat who is invested with or given the full power of independent action on behalf of Indian government in a foreign country. Currently if you see Mr Ajay Bissarya who is an Indian Foreign Service Officer is India's High Commissioner in Islamabad. Like the same way Pakistan also has its High Commissioner to India. Not only Pakistan has expelled the Indian High Commissioner but it has stated that Pakistan will not be sending its designated High Commissioner to India. It is mentioned as designated because the High Commissioner to India was newly appointed and is yet to take up this particular post. But now the Pakistan government has announced that the High Commissioner to India will not move to New Delhi to take up the position. These announcements and decisions were taken at the National Security Committee meeting of Pakistan. Know that this National Security Committee meeting is chaired by the Prime Minister of Pakistan. The National Security Committee or NSC is the principal decision making body on national security matters of Pakistan. It is supported by two principal subcommittees. One is a planning committee and the other is a research committee or say it is the advisory board. The planning committee identifies issues and topics for research by the research committee or the advisory board. The National Security Committee of Pakistan has taken five decisions with respect to the Jammu and Kashmir issue. Firstly, Pakistan has decided to downgrade the diplomatic relations with India. This means Pakistan will lower or reduce the diplomatic relations with India. The second decision is to suspend the bilateral trade with India. That is the trade which is happening between India and Pakistan. When a trade happens between two nations, we call that as a bilateral trade. Thirdly, Pakistan will review its bilateral arrangements with India. Next, Pakistan has decided to take the matter of Jammu and Kashmir to the United Nations, including the Security Council. The final decision that has been taken by this National Security Committee is that on 15th of August, which is the Independence Day of India, this particular day will be observed as Black Day by the country of Pakistan. Now, Black Day is observed when something terrible has happened on that day or a bad incident has happened on that particular day. So, according to Pakistan, 15th of August, the day when India attain independence will be observed as a Black Day. It is believed that the National Security Committee decisions has changed the dynamics of the bilateral relations between India and Pakistan. Let us move on to the next news article. This editorial speaks about what is meant by asymmetric federalism, then the arguments that were made against asymmetric federalism, and about the flexible nature of Indian federalism, which has been explained with certain theory and historical events. Now, the syllabus that is relevant to the analysis of this editorial is given here for your reference. Let us now see the editorial. In this editorial, the author speaks about abrogation or the repeal of Article 370. Now, before moving on to the editorial, know that Article 370 has not been abrogated or repealed, but the special provisions that have been given to the state of Jammu and Kashmir, which were the temporary provisions has been repealed. And now, this Article 370 has been modified that all provisions of Indian constitution shall apply to the state of Jammu and Kashmir. And they have given some terms and conditions under that particular article. So, know that the old temporary provisions, which were special provisions to the state of Jammu and Kashmir has been repealed and whatever provisions of Indian constitution shall be applicable to the state of Jammu and Kashmir now. So, this has been done by a notification from the President. So, whenever I am telling repeal of Article 370, just remember this fact. Now, let us see the editorial. The author tells that such kinds of articles like the Article 370 expose or show that some of the provisions in the constitution are asymmetrical in nature. Asymmetrical means that are not equal because we saw that the previous Article 370 was special provision with respect to the state of Jammu and Kashmir. The post-independence consolidation of India had been a challenging one. If you see numerous conflicts arose in different regions of India in the integration process of India after independence. So, numerous constitutional provisions were introduced, specially to address these regional conflicts. So, we can tell that these are the special provisions which have been enacted specially for certain regions. The author calls these as asymmetric constitutional provisions. The author tells that the autonomous status given to Jammu and Kashmir is the oldest one and the one that has more problems. Next, the author mainly links such constitutional provisions with the concept of asymmetric fatalism. Now, the term fatalism means division of powers between the center and the states in the Indian context. Now, center is the Indian Union and states are called as constituent units of Indian Union. So, all the states form together to make the Indian Union. Next, let us see about asymmetric fatalism. Asymmetric fatalism means granting or giving differential rights, that is different rights to certain federal subunits, that is to different states. Generally, some special rights are given based on the recognition of distinctive ethnic identity of that particular state. Now, one example of this asymmetric fatalism is the article 370. The author tells that article 370 was a transitional clause or say it was a temporary arrangement which was introduced specially for Jammu and Kashmir while the Indian constitution was being finalized during that time. But the prime ministers of India since then have made sure that this arrangement of autonomy for the Jammu and Kashmir as eroded or they made sure it gradually got destroyed because every prime minister had the aim to integrate Jammu and Kashmir into the union of India. But if you see the Kashmiris in that state of Jammu and Kashmir did not wish the special status to be removed. The author tells that since 1954, almost 94 out of the 97 entries in the union list under schedule 7 of Indian constitution and two-thirds of the constitutional articles have been extended to the state of Jammu and Kashmir and this process has happened with the approval of the Supreme Court. Next, the author tells that the regional parties grew in large numbers between the time period of 1989 to 2014. So, the author is telling that the regional autonomy was inexorable or it was unstoppable in this particular time period. But now this trend has changed. So, the current event is that article 370 that is the special provisions concerning the state of Jammu and Kashmir has been repealed and the Jammu and Kashmir state has been proposed to be bifurcated into two union territories by the present BJP government. So, the bill has been passed in both the houses of the parliament. The author tells that the BJP government has demonstrated the possibility of using the flexibility in the federal order. So, it has reshaped the size, powers and importance of Jammu and Kashmir. So, what is the importance of Jammu and Kashmir? It is the only state in India with the majority Muslim population. So, the central government has tried to concentrate the power. So, we can tell that the present government has changed the trajectory or the path of the regional autonomy. We saw in our past two days discussion that legislative assembly is not in place in the state of Jammu and Kashmir and the president's rule is happening at present and the central government has successfully repealed the special provisions given to the state of Jammu and Kashmir through Article 370 even when the legislative assembly of Jammu and Kashmir was not functioning. So, we can see the asymmetric federalism which the Jammu and Kashmir enjoyed has now been compromised because the special provisions has been repealed. So, we can see that these special constitutional provisions are not permanent and they are only temporary in nature. The author has mentioned some other examples for this asymmetric federalism like the Article 371A which speaks about the special provisions for the state of Nagaland, then Article 371G which deals with the special provisions for the state of Mizoram, then there is also Article 371F which is regarding the special provisions of Sikkim. Now, let us see the Article 371F regarding the special provision of Sikkim. When the small state of Sikkim joined the Indian Union in the early 1970s, this Article 371F was added to Indian constitution. So, whatever laws that were in place before the Sikkim's accession to India was made to remain as per this article. So, they will not change unless they are amended or repealed by the state legislature of Sikkim. So, we can see that asymmetric federalism is present for many states in India. The author tells that the asymmetric constitutional provisions are a common feature of federalism in diverse societies, which means there are different people of different ethnicities living in different states. So, some special privileges like autonomy are given to certain states. When such special privileges are given, the people from those states will not fight for secession, that is to withdraw from India and to form a new country. So, this is the strategy which India follows. The author tells that India is setting an international example. So, we can see that India has a strategy of asymmetric federalism. But there are some arguments which are against this model of asymmetrical federalism, which involves the special provisions. We saw that some special privileges like autonomy are given to certain states. But why are the people again fighting for secession? The problem is that whatever right of the autonomy that is given is not being exercised properly. So, we can tell that the autonomy is being denied. This is the reason why the secessionist claims are increasing. And this is the argument from this section of people. Now, there is an argument from the other section of people who are the majority national communities. Their argument is that these special provisions are discriminatory. For example, take that there is a rule that only specific people can own property in particular region. So, this is like discriminating the other sections of people because they are being denied the right to own property. Now, one more argument by the majority national communities is that Article 370 is the root cause of terrorism. Since the asymmetric federalism is leading to secessionist claims by certain sections of population. And because of them, the terrorism activities tend to increase. So, Article 370 is the root cause of terrorism. The next argument is that autonomy arrangements are also considered as anti egalitarian. Egalitarian means the principle that all people are equal and they deserve equal rights and opportunities. Now, why is this autonomy arrangement anti egalitarian? Because some of the rights which are enforced in the entire India is not present in that particular region which enjoys autonomy. For example, if you see the reservations for the scheduled cast and the scheduled tribes was not able to be implemented before repealing Article 370 in Jamun Kashmir. But now, since the Article 370 is repealed, the reservations for the scheduled cast and the scheduled tribes in these two proposed new union territories would become possible. Next, let us see about the flexible nature of Indian federalism. In this, the author discusses about the design of Indian federalism. She has spoken about two types. One is the demos constraining versus the next one demos enabling. Now, let us see demos constraining. It means the people who are the majority in a particular country that is the national majorities are not able to consolidate their power because of federalism. So, it is a design of federalism that serves to undermine the consolidation of the power by the national majorities. Next is demos enabling. This means that the design of federalism which places fewer checks on the power of national majorities. So, we can tell that the national majorities enjoy the power and there are fewer checks or control for the national majorities to exercise their power. The author has mentioned an example here. She tells that the composition of Rajya Sabha is almost same as the composition of the Lok Sabha because the seats in both the Rajya Sabha and the Lok Sabha have been distributed based on the population of the state instead of giving equal representation to each state irrespective of their size. And if you see very few constitutional powers have been given to the states and more constitutional powers lie with the central government. So, why is India demos enabling? Now, the reason why more powers were given to the center was to make sure that post the independence of India, the national integrity must be maintained. Here the author has quoted Dr. B. R. Ambedkar. He has told that India needs to be unitary as well as federal depending on the time and the circumstances. Now, unitary means a strong center and federal means division of powers between the center and the states where mostly states power would prevail. So, the Indian constitution itself has given some provisions to promote national integrity. Now, post independence many states were created based on the linguistic and ethnic lines that is based on the language and the culture. The author tells that Article 3 of Indian constitution gives power to the central government to create new states or to alter state boundaries. But state governments are not given veto powers if they are against the decision of creating a new state. Now, if it had been the case of complete federalism then the states would not have agreed for splitting and creating a new state. But if you see Indian constitution provides for a flexible federalism. So, this is the reason why the central government is also able to adopt asymmetrical measures like introducing special provisions to certain states. The author tells that until 2000s, most of these asymmetrical changes were done based on a slow process of consensus building. Now, consensus building means both the parties mutually agree to the solutions and the decision is taken based on the discussions and negotiations. But if you see in the present case of Jammu and Kashmir, the author is telling that the central government has made use of the flexibility of the federal provisions that are available in the constitution and not through consensus building. She tells that already the central government has created Telangana in the year 2014 based on the demands of the people. So, this was also not through consensus building. But if you see in the case of Jammu and Kashmir, the union territory of Ladakh has been proposed to be created and also the state of Jammu and Kashmir has been proposed to be converted into a union territory and also the article 370 has been repealed. So, no government has taken such huge steps in one time. So, the author is telling that there will be profound that is intense or greater and unknown consequences in Kashmir and also there will be wider implications that is the hint about how Indian federalism will work in the future. So, we do not know what lies for Indian the future. So, from this editorial know what is meant by asymmetric federalism, the arguments that are made against asymmetric federalism and about the flexible nature of Indian federalism. So, we saw certain theories like Demos constraining versus Demos enabling and some historical events also we saw. So, just make use of all these details. But this we come to the end of the analysis of this editorial. Have a look at the practice question. Let us move on to the next news article. This news article is about the Mekhedar to balancing reservoir project. The syllabus relevant to the analysis of this news article is given here for your reference. Let us now see the news article. The Mekhedar to balancing reservoir project is a contentious or say it is a controversial project. This is because the project aims to augment or to increase the Cauvery water supply to the metropolitan city of Bengaluru which is located in Karnataka. So, this decision is opposed by the state of Tamil Nadu. Hence, it is a very controversial project. Know that Mekhedar to is a place in the state of Karnataka along the river Cauvery. Since the location that is finalized for the proposed reservoir is Mekhedar to, this project is called as Mekhedar to project. The river Cauvery is an interstate river. When we tell it is an interstate river, it flows through different states. So, this river originates in the state of Karnataka and it drains into the Bay of Bengal after passing through the state of Tamil Nadu. This is the reason why Tamil Nadu state is opposing the construction of the reservoir project. We had a very detailed discussion about this project in our Hindu News Analysis on 3rd of July 2019. So, the link has been provided in the description box. Have a look at it to know what the project is about and what are the expected socio-economic and ecological benefits of the project. Now, for constructing the Mekhedar to balancing reservoir here, firstly environmental clearance is required. The environmental clearance is given by the Ministry of Environment, Forests and Climate Change. This is because it is mandatory to obtain environmental clearance for a development project. The ministry will assess the environmental impacts of the set projects and then it will grant environmental clearance for carrying out that particular project. Now, the news article states that the ministry has not granted clearance for this Mekhedar to balancing reservoir project. Actually, if you see the environmental impact assessment was carried by the expert appraisal committee or INSHOT EAC on river valley and hydroelectric projects. This committee was constituted by the Ministry of Environment, Forests and Climate Change. Based on the provisions of the environmental impact assessment notification or the EIA notification of 2006. So, this committee oppresses or evaluates the project thoroughly. It is being done by examining environmental impact assessment report, the environmental management plan, then by conducting public hearing and by examining the presentation made during the meeting of the committee, etc. See the environmental impact assessment notification of 2006 mandates four steps for considering environmental clearance. They are screening, scoping, public consultation and appraisal. In this, the second stage is scoping. Scoping refers to the process by which the expert appraisal committee determine a detailed and comprehensive terms of reference or INSHOT TOR. This TOR addresses all the relevant environmental concerns of the project for the preparation of environmental impact assessment report. So, based on this, Karnataka had sought for the granting of terms of reference for this Mekheda to project by the expert appraisal committee. But the expert appraisal committee did not recommend for the grant of fresh terms of reference or we can say it did not grant the scoping clearance for the project. Further, the expert appraisal committee had sought some additional information and clarification. The first concern is that while doing the study on the analysis of alternatives, there is no consideration of alternate sites. So, what happened was two options were given at the same location of different dam heights. So, the expert appraisal committee has sought that the alternatives have to be revisited and the best alternative has to be decided after a detailed study. Secondly, for the project, the forest land will be diverted as per the provisions of Forest Conservation Act of 1980 and the wildlife area will be diverted as per the provisions of Wildlife Protection Act of 1972. So, in total 4996 hectare area will be involved in this particular project. So, the expert appraisal committee feels this area to be very high. So, it has sought the optimization of the land once again. Then as we have said earlier, this is a controversial project between Karnataka and Tamil Nadu. So, the expert appraisal committee has received a couple of representation from the Tamil Nadu state government. These representations request to not to grant the terms of reference to the present proposal of Mekhe Datu project. So, the expert appraisal committee has opined or suggested that the two states should arrive at an amicable solution or a peaceful solution. Then after that, they can apply for the reconsideration for the grant of terms of reference. With this, we come to the end of the analysis of this news article. Now, have a look at the practice question. Let us move on to the next news article. This news article speaks about using a cactus from Mexico as an alternative to plastic. The syllabus relevant to the analysis of this news article is given you for your reference. Let us now see the news article. OpenShare or prickly pear belongs to the cactus family. The cactus is emblazoned or inscribed in Mexico's flag, if you see. The scientists now hope that this cactus could soon play a new and an innovative role in the production of biodegradable plastics. Plastic is one of the important reason for pollution around the world. So, an alternative is actually promising or say we are in very much need of any alternative solutions. If you see a Mexican researcher has made packaging material from these prickly pear cactus and they mainly focus on single use packaging material. This particular research team hopes to get patent for their product this year and also they are looking for partners in early 2020 for large scale production. Now, let us see how this plastic is made. The cactus pulp is strained in order to obtain the juice. Then this juice is mixed with the non-toxic additives and they are stretched to produce sheets. Then these are coloured with pigments and they are folded to form different types of packaging. Next, let us see where it is being cultivated. This cactus is widely cultivated in San Esteban in Guadalajara, Mexico. San Esteban belongs to the Yalisco State of Mexico. In this state by the year 2020, single use non-recyclable plastic bags, straws and other disposable items will be banned. The researcher said that this new alternative for plastic will be no more than a drop in the ocean in the battle to preserve the environment. He means to tell that this alternative, if at all, can only replace a very small percentage of plastic which is used in the world now. The researcher has also said that considering the rampant production that is the increased production of industrial plastic, there should be more stress on the developing new recycling strategies. Now, we saw that this particular cactus will be used in manufacturing single use plastics. So, whenever you are studying about single use plastics, just know that in March 2019, the United Nations member states had committed themselves to significantly reduce single use plastics by the year 2030 and also to address the damage that it has caused to the ecosystem. If you see this pledge was taken during the fourth session of United Nations Environment Assembly in Nairobi, Kenya. So, just know about this commitment to reduce the usage of single use plastics which has been taken by the United Nations member states and also know that a cactus is present which can be used as an alternative to the non-recyclable single use plastic. Let us move on to the next news article. This news article states that the Ministry of Environment, Forests and Climate Change has unveiled a draft environmental and social management framework in short called as ESMF. This ESMF is for ENCORE project. Now, the full form of ENCORE project is Enhancing Coastal and Ocean Resource Efficiency Project. This ENCORE project aims to strengthen the integrated coastal zone management in all the coastal states and also in the coastal union territories of India. Now, this draft plan will dictate how the prospective or the possible infrastructure projects that are situated along the coast have to be assessed before they can apply for the clearance. This draft document was prepared by the Society for Integrated Coastal Management or CCOM. This draft environmental and social management framework is part of World Bank funded project. The document lays down guidelines for coastal states and they have to adopt when they approve and regulate projects in the coastal zones. This ESMF is an instrument that examines the issues and impacts that are associated with the project and when a project consists of a program and or series of sub-projects. If you see the impacts cannot be determined until the program details or the sub-project details have been identified. Now, depending on the nature and location of the project, the project initiatives such as coastal protection measures, waste management, then development of infrastructure facilities for livelihood support etc are likely to result in positive impacts and negative impacts on the project area. So, this will be during the project's construction and operation and maintenance phases. These impacts will be important when the project locations are close to sensitive areas. Hence, we can see that there is a need for systematic safeguards management with a predefined framework for risk mitigation. It means that we need to have a well-set framework for risk mitigation. Now, as all project locations and activities are not finalized, in order to identify and manage its associated environmental risks, it is required to prepare an ESMF for a project. So, this ESMF would also draw from the past experience of environmental safeguards management, which were a part of earlier World Bank funded integrated coastal zone management project. Now, if you see this integrated coastal zone management project was implemented in pilot project basis in three coastal states namely Odisha, West Bengal and Gujarat. The draft ESMF states that during phase one of the encore project, the integrated coastal zone management plans would have to be prepared for the selected coastal stretches in other states or union territories. Now, the key activities that are proposed in this ESMF for the coastal zone development, where the states and union territories have to invest include the following. The first activity is mangrove afforestation or shelter bits, then habitat conservation activities such as restoration of seagrass meadows, then eco restoration of sacred groves. Now, grove is a small group of trees, then habitat conservation also includes the development of hatcheries, etc. The next activity is the creation of infrastructure for tourism, restoration and recharge of water bodies, then beach cleaning and development, and also some other small infrastructure facilities. Now, have a look at the practice question. Let us move on to the practice questions discussion session. The first question is consider the following statements and they have given you two statements and have asked you to choose the correct statements. The first statement is a repo rate is the rate at which the Reserve Bank of India gives loans to other banks. Now, this statement is correct. We saw that repo rates denotes the repurchase option. So, it is the rate at which the Reserve Bank of India gives loans to other banks for the loans the banks will have to keep some security with the Reserve Bank of India. So, repo rate can also be defined as the rate at which the banks will buy back or repurchase these securities from the RBI at a later stage. The second statement tells that it is being adjusted by the Monetary Policy Committee. This statement is also correct. We saw that the repo rates are decided to be reduced or to be increased by the Monetary Policy Committee of the Reserve Bank of India. Now, this is a six-member committee which includes the Governor of RBI and also the Deputy Governor of RBI. The chairperson of the Monetary Policy Committee is the Governor of RBI. So, as per the Act that is the Reserve Bank of India Act of 1934, the Monetary Policy Committee is expected to meet at least four times in a year. But usually if you see the Monetary Policy Committee meets once in two months. And we also saw in the news article that in the past four Monetary Policy Committee meetings, including the August meeting, the repo rate has been cut by totally 110 basis points. So, the second statement is also correct here. The question is asked for the correct statements. So, the correct answer is option C both one and two. Moving on to the next question, the question is consider the following statements regarding accommodative monetary policy. And they have given you three statements and I have asked you to choose the correct answer. The first statement is by an accommodative monetary policy, the central banks reduces its key policy rate to make money cheaper or easily available. This statement is correct. So, whenever there is an accommodative monetary policy, it means the central banks of the world. In India, it is the Reserve Bank of India. They will reduce their key policy rates so that the money will be easily available in the market. The second statement tells that decreasing repo rate will help to achieve this. This statement is correct because during our news article analysis, we saw that whenever there is a reduction in the repo rate, then the banks will have more money. That is the commercial banks will be able to get more money from the central banks. In this case, it is the RBI in case of India. So, when the commercial banks will have more money, then they can increase their lending, which means their lending capacity increases. So, this statement is also correct. Moving on to the third statement, decreasing the risk weightage of loans will help to achieve this. This statement is also correct. By decreasing the risk weightage, the banks will have to keep less amount with themselves for providing loans. So, now the banks will be in a position to lend more to the lenders or the borrowers who are in need of money. So, this statement is also correct. Now, the question is asked you to choose the correct answer. The correct answer is option D, 1, 2, and 3. Moving on to the next question, consider the following statements and they have given two statements and I have asked you to choose the incorrect answer. That is those statements which are not correct. Now, the first statement is Mekheda to balancing reservoir project will be constructed at the confluence point of river Kaveri and river Arkavati. Now, know that confluence point of rivers means the meeting point of two or more rivers. Here the first statement is correct because Mekheda to project will be constructed at the confluence point of river Kaveri and river Arkavati. Moving on to the second statement, the statement tells that river Kaveri originates and drains into the Bay of Bengal in Tamil Nadu. Now, this statement is wrong. During our analysis, we saw that river Kaveri is an interstate river. When we tell about interstate river, it means the river which passes through two or more states. So, this particular Kaveri river originates in the state of Karnataka and it drains into Bay of Bengal after passing through the state of Tamil Nadu so that we can see there are always disputes between Karnataka and Tamil Nadu with respect to Kaveri river. So, the second statement is wrong here. River Kaveri originates in the state of Karnataka and drains into the Bay of Bengal in Tamil Nadu. Now, this question is asked for the not correct or the incorrect statements. Since statement 2 is incorrect, the correct answer is option B 2 only. Moving on to the next question, with reference to the integrated coastal zone management project, which among the following statements is our correct? The first statement tells that it aims to protect and conserve the coastal and marine ecosystems and its environment through a holistic coastal management. This statement is correct. So, this particular integrated coastal zone management project aims to protect and conserve the coastal ecosystem and then the marine ecosystems. So, there will be coastal management regulation in place in order to protect and conserve the ecosystems. And also know that the Society of Integrated Coastal Management is the nodal agency for this integrated coastal zone management project phase 1. Moving on to the second statement, it tells that it is implemented with financial assistance from the United Nations Environment Program. This statement is incorrect because it is being implemented with the financial assistance from the World Bank. The third statement reads that it is implemented on pilot basis in Gujarat, Odisha and Tamil Nadu. During our discussion, we saw that it is being implemented on pilot basis in the states of Gujarat, Odisha and West Bengal, not Tamil Nadu. Based on the success of the phase 1 pilot project of this integrated coastal zone management project and after the approval from the Ministry of Finance, the project is being extended to all the 13 coastal states in the union territories which are the states of Maharashtra, Gujarat, Odisha, West Bengal, Andhra Pradesh, Tamil Nadu, Goa, Puducheri, Kerala, Karnataka, Damanandayu, Andaman and Nicobar Islands and also Lakshwadi and the preparatory activities for the phase 2 is in progress. So, on a pilot basis it was only implemented in the states of Gujarat, Odisha and West Bengal but not Tamil Nadu. So, the statement 3 is wrong here. Now this question has asked you to choose the correct answers only. That means the correct statements. Now only statement 1 is correct here so the correct answer is option A, 1 only. Moving on to the main question, the question is constitution of India is not only federal in nature but also asymmetric with respect to federal provisions. Substantiate. So, you have to substantiate the fact that constitution of India is federal in nature and it is also asymmetric with respect to federal provisions. First define what is meant by federalism then give some major provisions of the constitution that makes India a federal constitution like devolution of powers to the states, then like the 7th schedule where there is clear classification of union list, stateless etc. Then you have to substantiate the fact that the constitution of India is asymmetric with respect to federal provisions. So, between the states there are some states which have special provisions like just before a week the state of Jammu and Kashmir had a special provision which is the article 370 article 358. Then there are states like Nagaland, Andhra Pradesh, Mizoram and even states like Maharashtra which has some special provisions. Now, they are based on different reasons like cultural reasons, ethnic reasons, political reasons, developmental reasons and also because of terrain. So, there are various reasons. So, you can mention at least three or four special provisions like article 35a 370 which was for Jammu and Kashmir. Then you have got the entire article 371 then 371 a 2 j where 371 is for Maharashtra Gujarat, 371 a for Nagaland, b for Assam, 371 c for Manipur. Then you have got 371 d and e for Andhra Pradesh, f for Sikkim which we saw during our discussion. Then article 371 g for Mizoram and article 371 h for Arunachal Pradesh, i for Goa and j for the Hyderabad-Karnataka region. So, we have the entire article 371 and 371 a 2 j. So, you can mention at least two or three such special provisions which shows that the constitution of India is asymmetric with respect to federal provisions. And in our today's news analysis, we also saw what is meant by asymmetric federalism and the arguments made against the asymmetric federalism. So, you can also include those points in your answer. With this, we come to the end of today's analysis of all the news articles and also the practice questions discussion session. Do like, comment and share the video and do subscribe to Shankar IAS Academy YouTube channel for latest videos and updates. Stay focused and motivated friends. Thank you.