PRELIMS CURRENT AFFAIRS – 20/08/24

01. Consider the following statements with respect to SEBI

1. It functions as a statutory body under the Ministry of Corporate affairs, Government of India. 
2. Securities and Exchange Board of India is a quasi-legislative and quasi-judicial body that can draft regulations, conduct inquiries, pass rulings, and impose penalties.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Answer:  (b) 2 only 

In News: Why is SEBI’s credibility under a cloud?  

Explanation:

• The Securities and Exchange Board of India (SEBI) is the principal regulator of the securities market in India. It functions as a statutory body under the Ministry of Finance, Government of India. Hence statement 1 is incorrect
• The primary objectives of Securities and Exchange Board of India are as follows:

• To act as the watchdog of the Indian capital market
• To protect the interests of investors in securities, and
• To promote and regulate the securities market.

• SEBI Board consists of a Chairman and several other whole time and part time members. 
• Further, a Securities Appellate Tribunal (SAT) has been constituted to protect the interest of entities that feel aggrieved by SEBI’s decision.
• SEBI is a quasi-legislative and quasi-judicial body which can draft regulations, conduct inquiries, pass rulings and impose penalties. Hence statement 2 is correct
• It functions to fulfill the requirements of three categories –

• Issuers – By providing a marketplace in which the issuers can increase their finance.
• Investors – By ensuring safety and supply of precise and accurate information.
• Intermediaries – By enabling a competitive professional market for intermediaries. 

• SEBI Chairman has the authority to order “search and seizure operations”. SEBI board can also seek information, such as telephone call data records, from any persons or entities in respect to any securities transaction being investigated by it. 
• SEBI performs the function of registration and regulation of the working of venture capital funds and collective investment schemes including mutual funds.
• It also works for promoting and regulating self-regulatory organizations and prohibiting fraudulent and unfair trade practices relating to securities markets.

Source:

https://www.thehindu.com/business/Economy/why-is-sebi-credibility-under-a-cloud/article68537409.ece

02. Consider the following statements:

Statement -I: Blue moon, a phenomenon refers to the occurrence of a new moon twice in a month. 

Statement -II: Because the new moon to new moon cycle lasts 29.5 days, a time comes when the full moon occurs at the beginning of a month, and there are days left still for another full cycle to be completed.

Which one of the following is correct in respect of the above statements?

1. Both Statement – I and Statement – II are correct and Statement – II is the correct explanation for Statement – I
2. Both Statement – I and Statement – II are correct and Statement – II is not the correct explanation for Statement – I
3. Statement – I is correct but Statement – II is incorrect
4. Statement – I is incorrect but Statement – II is correct

Answer:  (a) Both Statement – I and Statement – II are correct and Statement – II is the correct explanation for Statement – I 

In News: What is a blue moon?  

Explanation:

• A blue moon is the second full moon in a month. Despite its name, a blue moon isn’t blue; it’s the traditional name for the second full moon in a month.Hence statement 1 is correct 
• Because the new moon to new moon cycle lasts 29.5 days, a time comes when the full moon occurs at the beginning of a month, and there are days left still for another full cycle to be completed.Hence statement 2 is correct
• Such a month, in which the full moon is seen on the 1st or 2nd, will have a second full moon on the 30th or 31st.
• Sometimes, smoke or dust in the air can scatter red wavelengths of light, as a result of which the moon may, in certain places, appear more blue than usual, but this has nothing to do with the name “blue” moon.
• The moon’s gravitational pull during a supermoon slightly affects tides, causing minor fluctuations in coastal high and low tides. However, the difference is usually not significant enough to cause major disruptions. 

Source:

https://www.thehindu.com/sci-tech/science/what-is-a-blue-moon/article68539266.ece

03. Which of the following control regimes bar the export of Dual use goods and technology: 

1. Nuclear Suppliers Group (NSG) 
2. Missile Technology Control Regime (MTCR) 
3. Australia Group 
4. Wassenaar Arrangement 

How many of the above statements are correct?

1. Only one
2. Only two
3. Only three
4. All four 

Answer:  (d) All four 

In News: Dual-use goods: US alerts Indian companies on export of defence tech to Russia 

Explanation:

• Dual-use goods and technologies are the  goods and technologies often pose a significant challenge in terms of regulation and export control because while they are necessary for a wide range of commercial and research activities, they can also potentially be used to develop weapons, including weapons of mass destruction (WMDs).
• Examles of dual use goods are Nuclear weapons, chemicals, biological agents, advanced computers, artificial intelligence, drones and 3D printing technologies. 
• Various international agreements and regimes attempt to control the export and proliferation of dual-use items:

• Nuclear Suppliers Group (NSG): Controls the export of nuclear material and technology.
• Missile Technology Control Regime (MTCR): Aims to restrict the proliferation of missiles and drone technology.
• Australia Group: Focuses on controlling exports that could contribute to chemical and biological weapons.
• Wassenaar Arrangement: A multilateral export control regime that deals with conventional arms and dual-use goods and technologies.Hence option(d) is correct.
• India is member to three of the above control regimes except Nuclear Suppliers Group (NSG) 

Source:

Dual-use goods: US alerts Indian companies on export of defence tech to Russia | Business News – The Indian Express 

04. With reference to causes of formation of Pyrocumulonimbus clouds, consider the following statements:

1. Heating of the layer of air close to the surface.
2. Rising ground forcing the air upwards (orographic uplift).
3. There must be a deep layer of stable air.

How many of the above statements are correct?

1. Only one
2. Only two
3. All three
4. None

Answer:  (b) Only two 

In News: How Pyrocumulonimbus clouds are formed when wildfires spit storms, lightning 

Explanation:

• Cumulonimbus Cloud (Cb) is a heavy and dense cloud of considerable vertical extent in the form of a mountain or huge tower, often associated with heavy precipitation, lightning, and thunder. 
• More commonly known as thunderclouds, cumulonimbus is the only cloud type that can produce hail, thunder, and lightning.
• The base of the cloud is often flat, with a very dark wall-like feature hanging underneath, and may only lie a few hundred feet above the Earth’s surface.
• Cb forms when three conditions are met:

• There must be a deep layer of unstable air.
• The air must be warm and moist.
• A trigger mechanism must cause the warm, moist air to rise:
• Heating of the layer of air close to the surface.
• Rising ground forcing the air upwards (orographic uplift).
• A front forcing the air upwards.

• Pyrocumulonimbus Clouds are thunder cloud screated by intense heat from the Earth’s surface.
• They are formed similarly to cumulonimbus clouds, but the intense heat that results in the vigorous updraft comes from fire, either large wildfires or volcanic eruptions. Hence option(b) is correct.
• So it is, for this reason, the prefix ‘pyro’ is used – meaning fire in Greek.
• They look much darker than typical clouds because of their large amounts of smoke and ash.
• Pyrocumulonimbus clouds are thought to be responsible for several aerosol pollutants (such as smoke and ash) trapped in the stratosphere and upper atmosphere. 
• And sometimes, lightning strikes generated from them can even ignite additional fires.

Source:

How Pyrocumulonimbus clouds are formed when wildfires spit storms, lightning | Explained News – The Indian Express 

05. ‘Banni’ houses one of the largest tracts of grasslands in the country in the state of 

1. Gujarat
2. Madhya Pradesh
3. Sikkim
4. Uttarkhand

Answer:  (a) Gujarat

In News:How the Banni grasslands of Kachchh, Gujarat can be restored 

Explanation:

• Grasslands are one of the largest ecosystems in the world. They are distributed mainly in semiarid and arid areas, and include savannahs, grassy shrublands, and open grasslands. 
• They harbour a large number of unique and iconic species and a variety of material and intangible advantages to people, including several ecosystem services such as carbon storage, climate mitigation, and pollination. 
• Like other types of biodiversity, they face the problem of degradation due to deforestation, overgrazing, agriculture, urbanisation, and other natural and human-made reasons. 
• As much as 49% of grassland areas worldwide are estimated to be experiencing degradation. In India, grasslands account for approximately eight lakh sq. km, or about 24% of the country’s total land area (32.8 lakh sq. km). 
• They are increasingly threatened by agricultural conversion, tree-based plantation projects, invasive species, and mega-development projects. 
• The issue is exacerbated by the strong bias of government and non-prot organisations for the conservation and protection of forests. 
• The Kachchh district in Gujarat, in the western part of the country, houses one of the largest tracts of grasslands in the country.
• Popularly known as ‘Banni’, it once covered an area of approximately 3,800 sq. km but it has now decreased to about 2,600 sq. km.Hence option(a) is correct.
• In a new study, researchers at the Department of Earth and Environmental Science in Krantiguru Shyamji Krishna Verma (KSKV) Kachchh University, in Bhuj, have assessed the suitability of different areas of Banni for sustainable grassland restoration, considering ecological value to be the primary criterion.
• They grouped the prospective restoration zones of the Banni grassland into ve categories depending on how suitable each zone was for restoration. 
• They have found that as much as 937 sq. km (or 36%) of the existing grassland area was “highly suitable”, 728 sq. km (28 %) was “suitable”, 714 sq. km (27%) was “moderately suitable”, 182 sq. km. (7%) was “marginally suitable”, and 61 sq. km (2%) was “not suitable” for restoration.

Source:

https://www.thehindu.com/sci-tech/energy-and-environment/how-the-banni-grasslands-of-kachchh-gujarat-can-be-restored/article68544243.ece

06.With reference to The RISE Accelerator program,consider the following statements:

1. It is a bilateral program led by Australia’s national science agency CSIRO and the Atal Innovation Mission , NITI Aayog
2. The program launched in 2023 has been instrumental in supporting start-ups and MSMEs in validating, adapting, and piloting their technologies for new markets.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Answer:  (c) Both 1 and 2

In News:India Australia RISE Accelerator calls for Start-ups and MSMEs in Climate Smart Agritech

Explanation:

• The Atal Innovation Mission – in partnership with CSIRO, Australia – is inviting applications from start-ups and MSMEs from India and Australia for the Climate Smart Agritech cohort of the India Australia Rapid Innovation and Start-up Expansion (RISE) Accelerator – a program designed to support businesses aiming for international expansion between the two countries. 
• This marks a significant milestone in fostering innovations that address India and Australia’s most pressing shared challenges in the agriculture sector.
• Commencing in October 2024, the Climate Smart Agritech cohort of the RISE Accelerator will focus on
• start-ups and MSMEs with technologies and solutions that enhance agricultural productivity and resilience in the face of growing climate variability, resource scarcity and food insecurity.
• The program is particularly interested in start-ups and MSMEs with solutions that prioritise farmer needs, priorities, and on-farm practices.    
• The India Australia Rapid Innovation and Start-up Expansion (RISE) Accelerator is a bilateral program led by CSIRO and the Atal Innovation Mission (AIM), NITI Aayog.Hence statement 1 is correct
• The RISE Accelerator addresses India and Australia’s shared challenges with a focus on environment and climate issues by supporting the expansion of innovative agritech solutions across borders.

• The RISE Accelerator program – launched in 2023 – has been instrumental in supporting start-ups and MSMEs in validating, adapting, and piloting their technologies for new markets.Hence statement 2  is correct
•  With the introduction of the Climate Smart Agritech cohort, the focus is now on agritech start-ups and MSMEs with solutions that enhance agricultural productivity and resilience in the face of growing environmental challenges
• Over the course of the nine months of the accelerator program, the selected start-ups and MSMEs will benefit from a blend of self-paced online learning and in-person sessions, including immersion weeks in both India and Australia. 
• These sessions will offer deep market insights, one-on-one coaching, and mentorship from subject matter experts and industry professionals. The program is designed to facilitate connections with potential partners and customers, boosting the chances of success in new markets.
• The program will also involve field trials and technology pilot in the latter half.
• The program’s latest round seeks novel solutions to tackle critical agricultural challenges, including boosting productivity, reducing emissions and optimising natural resource use.
• Applications for the RISE Accelerator close on 15 September 2024. 
• There is no charge for start-ups / SMEs to participate in the program, with a number of opportunities to travel between Australia and India. 
• Selected start-ups / SMEs may also be eligible for up to INR 45 lakhs in non-equity grant.

Source:

https://pib.gov.in/PressReleasePage.aspx?PRID=2046486

07. Consider the following states:

1. Andhra Pradesh
2. Odisha
3. Madhya pradesh
4. Tamil nadu

How many of the above are generally known as Coffee producing states?

1. Only one
2. Only two
3. Only three
4. All four

Answer:  (c) Only three

In News:Board standardise tissue culture tech for coffee sector

Explanation:

• Tissue culture technology for the coffee sector has been standardised for the first time in India. 
• The state-run Coffeee Board has signed a memorandum of understanding with Jain Irrigation for the commercial release of coee plants developed using tissue culture protocols to growers
• The Board will use its extension network for creating awareness among the growers about the planting material developed using tissue culture technology.
•  Also, Jain will establish dealerships or contact points in the coffeegrowing areas of Chikkamagaluru and Madikeri, from where growers can book the planting material.
• Lack of good quality planting material has been a concern for coffee growers in India, where the last new arabica variety Chandragiri was released in 2007. 
• A new arabica variety 4595, which shows resistance to the dreaded white stem borer, being developed and evaluated by the Central Coffee Research Institute would also be released through tissue culture.
• In India, coffee is traditionally grown in the Western Ghats spread over Karnataka, Kerala and Tamil Nadu. 
• Coffee cultivation is also expanding rapidly in the nontraditional areas of AP and Odisha as well as in the North East states.Hence option(c) is correct.
•  Coffee is predominantly an export oriented commodity and 65% to 70% of coffee produced in the country is exported while the rest is consumed within the country. The Indian coffee industry earns a foreign exchange to the tune of about Rs.4000 Crores.
•  Indian coffee has created a niche for itself in the international market and the Indian Coffees are earning high premium, particularly Indian Robusta which is highly preferred for its good blending quality. 
• Arabica Coffee from India is also well received in the international market. Coffee is an export product with low import intensity and high employment content. 
• This is evident from the fact that more than six lakh persons are directly employed and an equal number of individuals get indirect employment from this sector.

Source:

https://epaper.thehindubusinessline.com/ccidist-ws/bl/bl_kolkata/issues/95901/OPS/GK7D7FI0V.1+GE0D7GV7A.1.html

08.With reference to PM Fasal Bima Yojana, Consider the following statements:

Statement -I:Under this scheme farmers pay 2 percent of the sum insured as premium in kharif season and 1.5 per cent in rabi and 2 percent for cash crops in both seasons

Statement -II: The remaining premium amount, derived after tender for different crops in different clusters, is shared at a 50:50 ratio by the Centre and States and 90:10 for North eastern states. 

Which one of the following is correct in respect of the above statements?

1. Both Statement – I and Statement – II are correct and Statement – II is the correct explanation for Statement – I
2. Both Statement – I and Statement – II are correct and Statement – II is not the correct explanation for Statement – I
3. Statement – I is correct but Statement – II is incorrect
4. Statement – I is incorrect but Statement – II is correct

Answer:  (d)Statement – I is incorrect but Statement – II is correct

In News:Will insurance companies be phased out from PMFBY?

Explanation:

• The Centre may remove insurance companies from the subsidised crop insurance scheme — PM Fasal Bima Yojana — in the next few years and assign the job to State governments after infusion of technologies in crop-cutting and satellite monitoring of sowing, harvesting starts showing results. 
• Though it is too early to say definitively that insurance companies will be driven away, of late, there is a demand from the States that have started questioning the role of insurance companies in PMFBY. 
• So, in the next phase, the States may be given the option to carry out PMFBY themselves by taking the responsibility.
• Already Andhra Pradesh, Maharashtra and Odisha are implementing universal coverage — covering all landowning farmers — by paying even the farmers’ share of premium (either completely or charging a token ₹1 to farmers) under PMFBY, sources said.
•  Many other States are also considering universalisation of crop insurance, the sources said. Bihar, West Bengal and Gujarat too have their own crop insurance schemes that cover all the farmers.
• There are talks of universalisation of crop insurance. 
• Currently, we cannot implement universalisation even though we want to. If the assessment of crops (productivity) becomes accurate by using space technologies, a digital crop survey will tell everything — who is the farmer, what is his contact number, what is his Aadhaar identity, what crops has he grown. 
• Even the real-time crop conditions of the entire village will be known. In reality, there will be no need for insurance companies in PMFBY
• Under PMFBY, farmers pay 2 percent of the sum insured as premium in kharif season and 1.5 per cent in rabi and 5 per cent for cash crops in both seasons.Hence statement 1 is correct
•  The remaining premium amount, derived after tender for different crops in different clusters, is shared at a 50:50 ratio by the Centre and States.Hence statement 2 is correct 
• The sharing of subsidised premium formula is 90:10 for the north-eastern and hilly States. Official sources said that States are ready to take up PMFBY as a scheme as there will not be any loss as seen from the operations of insurance companies in the last 6-7 years. 
• If the claim amount is more than the premium in one year, the claim-to-premium ratio will be even-out over a five-year period as claims are normally below gross premium,” the source quoted earlier said.

Source:

https://www.thehindubusinessline.com/economy/agri-business/will-insurance-companies-be-phased-out-from-pmfby/article68539800.ece

09. The Godda plant is India’s first transnational power project that supplies all the power generated to another nation Bangladesh installed in the state of 

1. West Bengal
2. Sikkim
3. Tripura
4. Jharkhand

Answer:  (d) Jharkhand

In News:A change in India’s power export rules

Explanation:

• On August 14, Reuters reported on the introduction of an amendment to India’s power export rules. Purported to hedge against political risks in Bangladesh, it allows Indian power exporters to reroute their output to Indian grids if there is a delay in payments from partner countries. 
• Adani Power’s plant in Godda (Jharkhand) supplies its entire generated power to Bangladesh. In a statement, a spokesperson of Adani Power emphasised their commitment of supplying electricity to Bangladesh, stating that the amendment does not aect its existing contract. 
• The Jharkhand-subsidiary of Adani Power supplies 1,496-megawatt net capacity power to Bangladesh from the ultra super-critical thermal power plant in Godda. 
• This is facilitated under a Power Purchase Agreement (PPA) entered with the Bangladesh Power Development Board (BPDB) in November 2017 for a period of 25 years. 
• The Godda plant is India’s first transnational power project that supplies all the power generated to another nation. Hence option(d) is correct.
• In a statement on July 15 last year, Adani Power stated that the electricity supplied from Godda will have a positive impact on the neighbour’s power situation by replacing costly power generated using liquid fuel.
•  It elaborated that the transition would help reduce the average cost of power purchased. 
• As per the Bangladesh Power Development Board’s (BPDB) annual report for 2022-23, the total installed generation capacity of the country was 24,911 MW in June 2023. 
• Of this, 2,656 MW was imported from India (more than 10% of overall) with the Godda plant contributing 1,496 MW (about 6% of overall). 
• On the policy prerogative for power export, India’s Ministry of Power illustrating the guidelines for power export in 2016 said the exchange of electricity across South Asia would promote “economic growth and improve the quality of life for all the nations.

Source:

https://energy.economictimes.indiatimes.com/news/power/bangladeshs-summit-reviewing-cross-border-power-deals-after-india-rule-change/112645219

10.According to India’s National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels?(2020)

1. Cassava
2. Damaged wheat grains
3. Groundnut seeds
4. Horse gram
5. Rotten potatoes
6. Sugar beet

Select the correct answer using the code given below:

1. 1, 2, 5 and 6 only
2. 1, 3, 4 and 6 only
3. 2, 3, 4 and 5 only
4. 1, 2, 3, 4, 5 and 6

Ans:(a)1, 2, 5 and 6 only

Explanation:

• The National Policy on Biofuels, 2018, allows production of ethanol from damaged food grains like wheat, broken rice, etc., which are unfit for human consumption.
• The Policy also allows conversion of surplus quantities of food grains to ethanol, based on the approval of the National Biofuel Coordination Committee.
• The Policy expands the scope of raw material for ethanol production by allowing use of sugarcane juice, sugar containing materials like sugar beet, sweet sorghum, starch containing materials like corn, cassava, damaged food grains like wheat, broken rice, rotten potatoes, unfit for human consumption for ethanol production.Henceoption (a) is the correct answer.