August 26th 2024 Current Affairs

Index:

1. Union Cabinet Approves BioE3 Policy for Biotechnology Manufacturing

Overview:

Policy Name: BioE3 (Biotechnology for Economy, Environment, and Employment)
Objective: To revolutionize biotechnology manufacturing akin to the IT sector’s impact in the 1990s.
Steering Department: Department of Biotechnology

High-Performance Biomanufacturing:

Produce medicines, materials, and bio-based products.
Address challenges in farming and food.

Vigyan Dhara Scheme:

Objective: Merge three existing schemes to streamline funding and focus.
Total Funding: ₹10,579 crore (until 2025-26)
Components:
- Institutional and Human Capacity Building
- Research and Development
- Innovation, Technology Development, and Deployment

Strategic Sectors

Educational and Research Initiatives:

Internships: For 11th and 12th grade students.
Fellowships: For graduate and post-graduate research.
Focus Areas for Research:
- Basic and translational research, particularly in sustainable energy.
- Access to international research facilities.

Implications:

The policy aims to advance biotechnology manufacturing, improve climate resilience, and foster innovation across various sectors, aligning with national priorities and global research trends.

2. The New Unified Pension Scheme

CONTEXT: The Unified Pension Scheme (UPS) was introduced by the NDA government, replacing the National Pension System (NPS) for central government employees.

Approved by the Union Cabinet on August 24, 2024, and effective from April 1, 2025

Key Features of UPS:

Assured Pension:
- Government employees will receive 50% of their average basic pay drawn over the last 12 months before retirement as a lifelong monthly pension.
Assured Family Pension:
- In case of the employee’s death, the family will receive 60% of the employee’s pension.
Assured Minimum Pension:
- A minimum pension of ₹10,000 per month for those who complete at least 10 years of Central government service.
Periodic Dearness Relief:
- Adjustments in pension based on inflation trends.
Lumpsum Payout:
- Superannuation payout in addition to gratuity benefits upon retirement.

Background:

NPS (New Pension Scheme): Implemented from January 1, 2004, for new government employees. Pension payouts were based on market-linked returns from contributions made by employees and the government, managed by fund managers under the Pension Fund Regulatory and Development Authority (PFRDA).
Review Committee: A committee led by former Finance Secretary T.V. Somanathan was set up in March 2023 to review NPS, leading to the decision to adopt UPS.
State Actions: Five non-BJP-ruled States had already reverted their employees from NPS to OPS, advocating for a guaranteed pension at 50% of salary.

Implications:

The introduction of the UPS aims to address concerns over the financial security of government employees, offering a guaranteed pension similar to the OPS while aligning with fiscal prudence and addressing employee aspirations.

3. Heavy Rain in Tripura and Floods in Bangladesh: Clarifications and Impacts

CONTEXT: Clarification by the Ministry of External Affairs (MEA) regarding the impact of the Dumbur dam on recent floods in Bangladesh.

Flooding in Bangladesh: Affected Areas: 43 upazilas in Comilla, Feni, Chattogram, Khagrachhari, Noakhali, and Moulvibazar districts. Impacted approximately 18 lakh people from 1.9 lakh families displaced.
Claims and Clarifications:
- Social Media Rumors: Claims of flooding caused by the release of water from the Dumbur dam in Tripura.
- Tripura’s Response: Power Minister Ratan Lal Nath confirmed no flood gates were opened; excess water from the Gumti reservoir escaped through the spillway.

MEA Statement:
- Dam Details: Dumbur dam is located 120 km upstream from the Bangladesh border and is about 30 meters high.
- Flood Cause: Recent heavy rains in the catchment areas of the Gumti River, which flows into Bangladesh, are the primary cause of flooding, not the Dumbur dam.

Rainfall and Flooding in Tripura:
- Heavy Rainfall:
  - Significant Impact: The heavy rainfall has led to rising river levels, with Gomti River continuing above the danger mark.
- Local Impact: Worst effects in Khowai, West Tripura, Sepahijala, Gomati, and South Tripura.
- Casualties and Relief: At least 24 deaths feared; 1.28 lakh people sheltered in 558 relief camps since August 19.

Dam and River Information:
- Gumti Project: Commissioned in 1976, with a 15 MW installed capacity, it is Tripura’s only hydro-electric power project.

Rivers Affected: Multiple rivers in Tripura including Manu, Deo, Kakri, Juri, Feni, Muhuri, Lawgang, Khowai, and Gomti experienced unnatural rises due to heavy rain.

4. India's Imports from Vietnam Surge Amid Global Trade Shifts

Overview:

Key Development: India’s imports from Vietnam increased by 17% to $5.8 billion from January to July 2024, driven largely by electrical machinery and parts.

Increase in Imports:
- Growth Rate: 17% rise in imports from Vietnam compared to the same period last year.
- Electrical Machinery: Imports of electrical machinery and parts surged by 43% from January to May 2024.

Economic Context:
- Chinese Supply Chain Influence: The Economic Survey 2023-24 attributes increased trade with countries like Vietnam to Chinese firms re-routing their supply chains. This includes manufacturing shifts to avoid tariffs and take advantage of Free Trade Agreements (FTAs).
- Impact on Indian Steel Industry: The Indian Steel Association has requested an anti-dumping investigation into imports of hot-rolled flat products from Vietnam, which they argue are affecting domestic steel prices.

Trade Data and Analysis:
- Imports from Vietnam:
  - 2021-2024 Trend: Imports have risen significantly, with July 2024 figures showing nearly double the value of July 2021.
  - Detailed Imports: Electrical machinery and parts are a major contributor to the surge.
- Steel Trade Deficit: India became a net importer of steel in FY24, with a deficit of 1.1 million tonnes. This shift comes despite past surpluses.

China-Vietnam Trade Dynamics:
- Chinese Investment and Production Shifts: Chinese firms are setting up production in ASEAN countries, including Vietnam, to bypass US and EU tariffs. This re-routing is influencing global trade patterns.
- FTA Utilization: Vietnamese firms use FTAs to access markets like India, the US, and the EU, sometimes by rebranding Chinese-made products.

Broader Trade Trends:
- Imports from China: Imports from China reached over $60 billion in the first seven months of 2024, a 10% increase from the previous year.
- Vietnam’s Trade Performance: Vietnam’s exports grew by 14% in the first half of 2024, with significant increases in trade with both China and the US.

Challenges and Opportunities:
- Decoupling from China: The global shift away from Chinese supply chains, known as the “China plus One” strategy, highlights the challenge of reducing dependency on China while managing trade dynamics.

Vietnam’s Trade Strategies: Vietnam is strengthening trade ties with China and exploring economic cooperation, including infrastructure projects like high-speed rail links.

5. Classical Language Centres Seek Autonomy for Effective Operation

CONTEXT: Centres promoting classical languages in India are requesting autonomy to enhance their operational efficiency.

Background:
- Classical Languages in India: Tamil, Sanskrit, Telugu, Kannada, Malayalam, and Odia.
- Current Structure: Four of these centres (Telugu, Kannada, Malayalam, Odia) operate under the Central Institute of Indian Languages (CIIL), Mysuru. The Tamil centre is autonomous, and Sanskrit is supported by dedicated universities with direct funding from the Union Education Ministry.

Demand for Autonomy:
- Reason for Demand: Project directors of the four centres have requested autonomy to overcome bureaucratic hurdles and improve operational efficiency.
- Challenges:
  - Approval Process: Centres must get financial sanction from CIIL for events and activities, often requiring reimbursement after expenses are incurred.
  - Vacant Positions: Difficulties in hiring research scholars and administrative staff due to delays and lack of direct funding.

Current Issues:
- Financial Management:
  - Centres have to get prior approval from CIIL for expenditures, causing delays and inefficiencies.
  - Example: Centre of Excellence for Studies in Classical Telugu in Nellore is under-staffed with only 12 out of 36 approved positions filled.
  - Centre of Excellence for Studies in Classical Odia in Bhubaneswar faces similar issues with a shortage of senior fellows and administrative staff.
- Funding Allocation:
  - In 2023, the Centre of Excellence for Studies in Classical Odia received ₹1.76 crore but could only spend ₹56 lakh due to bureaucratic constraints.

Benefits of Autonomy:
- Operational Flexibility: Autonomy would allow centres to manage funds directly, expedite the approval process, and improve the organization of events and research activities.
- Staffing and Recruitment: Direct control over funds could facilitate quicker hiring and filling of vacancies, ensuring that centres operate at full capacity.
Recent Developments:
- Submission of Reports: The centres submitted detailed project reports in June but have yet to receive further instructions from the Education Ministry.
- Historical Funding: The Union government reported spending ₹643.84 crore on Sanskrit promotion and ₹29 crore on the other five classical languages over the previous three years.

6. Renewed Push for Siang River Hydropower Project Faces Local and Environmental Opposition

CONTEXT: Controversial 12,000 MW Siang Upper hydropower project in Arunachal Pradesh.

Location: Siang River, Arunachal Pradesh.
Origins: Gained traction in 2009 under Chief Minister Dorjee Khandu’s Hydro Power Policy, which targeted extensive hydropower development.

Local Impact and Opposition:
- Community Concerns: Indigenous Adi people fear displacement and environmental damage. The project could submerge agricultural land and affect 55 villages and towns.
- Activism: Ebo Mili and Dunge Apang are key figures opposing the project, citing threats to ecosystems, wildlife, and local livelihoods.

Environmental and Social Implications:
- Cultural Significance: Siang River (Aane) is culturally sacred to the Adi community.
- Risks: Potential large-scale flooding and biodiversity loss.

Political and Strategic Dimensions:
- China Factor: Concerns over China’s 60,000 MW project on the Yarlung Tsangpo River, which might impact the Siang with artificial floods.
- Political Shifts: BJP, initially opposed to large dams, now supports major projects under Prime Minister Modi. Shift in stance noted with larger projects gaining backing.

Recent Developments:

Detentions and Protests: Activists detained before a visit by Union Power Minister Manohar Lal, reflecting ongoing tensions

7. Eight Years On, NIV Still Relies on U.S. CDC for Zika Test Kits

CONTEXT: India’s reliance on the U.S. CDC for Zika virus test kits due to lack of local validation and approval.

Current Situation:
- Testing Issues: Most Indian labs, including the National Institute of Virology (NIV), lack locally approved Zika test kits. As of February 16, 2023, the Indian drug regulator (CDSCO) had not approved any Zika virus test kits.
- NIV’s Practice: NIV has used the CDC’s Trioplex RT-PCR test kits for Zika testing since 2016, relying on the U.S. CDC for these kits.

Test Kit Details:
- CDC Trioplex RT-PCR Kit: Developed to detect Zika, dengue, and chikungunya viruses. Approved under emergency use authorization by the U.S. FDA.

Local Efforts:
- Institute of Advanced Virology (IAV): Thiruvananthapuram-based IAV developed an in-house assay for Zika virus testing using sequence data from CDC. They validated this assay with samples from a 2022 outbreak and commercial test kits. This locally developed test is cheaper and supports broader surveillance.

Challenges and Issues:
- Regulatory Differences: The Indian drug regulator’s requirement for validation using clinical samples hampers the development of diagnostic tests, as samples of novel viruses are primarily handled by NIV.
- Access to Samples: Limited access to clinical samples and delays in updating genome sequences affect timely outbreak detection and response.

Recent Developments:
- Validation and Cost: IAV’s assay offers a more cost-effective alternative, aiding in both patient and mosquito surveillance.