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Current Affairs 22nd May 2024 for UPSC Prelims Exam

Local Environmental Footprints

Context: A recent study revealed significant disparities in environmental footprints among Indian households across different economic classes.

Study Overview

  • Title: “Water, air pollution and carbon footprints of conspicuous/luxury consumption in India.”
  • Focus: Examines CO2, water, and particulate matter (PM2.5) footprints associated with luxury consumption among different economic classes in India.
  • Luxury Consumption Basket: Includes dining out, vacations, furniture, social events, etc.

Methodology

  • Input/Output Analysis: The study used this method to map household consumption to the resources/materials involved in production.
    • Water Footprint: Quantified water usage throughout production stages and direct household usage.
    • 5 Footprint: Included embedded and direct emissions from household activities like fuelwood and vehicular fuels.
    • CO2 Footprint: Captured both embedded and direct CO2 emissions from household consumption.

Key Findings

  • Increase with Wealth: Environmental footprints increase from poorer to richer economic classes.
    • Richest 10%: Footprints are approximately double the overall average.
    • Surge in Footprints: Notable increase from the ninth to the 10th decile:
      • Air Pollution Footprint: Increased by 68%.
      • Water Footprint: Increased by 39%.
      • CO2 Emissions: Increased by 55%.
    • Top Decile Consumption: Reflects substantial increases in environmental footprints, primarily due to luxury consumption.

Key Contributors to Environmental Footprints

  • Eating Out/Restaurants: Significant contributor across all three footprints in top decile households.
  • Water Footprint: Driven by the consumption of fruits and nuts in the 10th decile.
  • Luxury Items: Personal goods, jewellery, and eating out contribute to increased CO2 and air pollution footprints.
  • Fuel Use: Poorer households using firewood highlight contrasting impacts of energy transitions:
    • Transition to LPG: Reduces direct footprints, but affluent lifestyle choices increase PM2.5 and CO2 footprints.

Comparative CO2 Footprint

  • Top Decile in India: The average per capita CO2 footprint is 6.7 tonnes per year.
    • Global Average (2010):7 tonnes per capita.
    • Paris Agreement Target: 1.9 tonnes CO2eq per capita per year.
    • Comparison with U.S. and U.K.: Still below average levels, but significant enough to require policy attention.

Policy Implications

  • Elite Lifestyles: Influence broader societal aspirations; policymakers should prioritise reducing consumption levels of affluent households to align with sustainability goals.
  • Environmental Justice: Local and regional environmental issues disproportionately affect marginalised communities.
    • Examples: Water scarcity and air pollution impact marginalised groups more, while affluent sections afford protective measures like air-conditioned cars and air purifiers.
  • Multi-Footprint Analysis: Crucial for addressing environmental justice concerns and ensuring equitable sustainability efforts.

RBI’s Proposed Framework for Project Financing

Context: The Reserve Bank of India (RBI) has proposed a framework to strengthen regulations around financing for projects with long gestation periods in infrastructure, non-infrastructure, and commercial real estate sectors.

Purpose of the Framework

  • Objective: Strengthen the regulatory framework for financing long-gestation projects in infrastructure, non-infrastructure, and commercial real estate sectors.
  • Challenges: Infrastructure projects have long gestation periods with a high probability of financial non-viability.
    • They may require longer-tenure loans and face multiple obstacles, leading to delays or cost overruns.
  • Statistics: Ministry of Statistics and Programme Implementation’s March review of 1,837 projects found 779 delayed and 449 with cost overruns.
    • Delays were due to factors like land acquisition, forest/environment clearances, and changes in scope.

Key Revisions in the Framework

  • Mitigation Focus: Addressing ‘credit events’ such as defaults, extension of the Date of Commencement of Commercial Operations (DCCO), need for additional debt, and reduction in Net Present Value (NPV) of projects.
  • Provisioning:
    • At the construction stage, a general provision of 5% on all existing and fresh exposures is recommended, revised from 0.4%.
    • Implemented in a phased manner.
    • CareEdge Ratings noted this could reduce bidding interest from infrastructure developers in the medium term.

Prudential Conditions

  • All mandatory pre-requisites must be in place before financial closure, including environmental, regulatory, and legal clearances.
  • Clear definition of DCCO.
  • Financial Disbursals: Linked to stages of project completion and equity infusion progress.
  • Independent Certification: Banks must deploy independent engineers or architects to certify project progress.
  • Positive NPV Requirement: Mandate a positive NPV for project finance and independent annual re-evaluation of project NPV to avoid stress build-up.

Repayment Norms

  • Tenure Limits: Original or revised repayment tenure, including moratorium, must not exceed 85% of the economic life of the project.
  • Repayment Schedule Revision:
    • Allowed before DCCO if project scope and size increase.
    • Must be reassessed for viability if project cost risk (excluding overruns) is 25% or more of the original outlay.
  • Standby Credit Facility: Guidelines for triggering a standby credit facility sanctioned at financial closure to fund overruns due to delays.

Impact on Financial Institutions

  • Higher provisioning requirements may impact near-term profitability of non-banking financial companies and infrastructure financing companies (ICRA observation).
  • Major banks (SBI, Union Bank of India, and Bank of Baroda) expressed confidence that the proposal would not have a significant impact.

Turbulence

Context: One person died, and some injuries were reported in a Singapore Airlines flight (SQ321) from London to Singapore when it encountered severe turbulence.

What is Turbulence?

  • Turbulence is a disruption of airflow over the wings of an aeroplane, causing irregular vertical motion.

Current Affairs 22nd May 2024 for UPSC Prelims Exam_4.1

  • There are at least seven kinds of turbulence:
    • Clear Air Turbulence (CAT): Occurs in clear skies, usually at high altitudes, and can be caused by wind shear within the jet stream.
    • Frontal Turbulence: Happens near weather fronts where warm and cold air masses meet, leading to unstable air and potential thunderstorms.
    • Mechanical Turbulence: Caused by obstructions on the ground, like buildings or mountains, that disrupt the flow of air.
    • Convective Turbulence: Results from thermal columns or rising warm air, often associated with cumulus clouds and thunderstorms.
    • Wake Vortex Turbulence: Generated by the wingtips of large aircraft, creating swirling vortices that can affect following aircraft.
    • Wind Shear: Sudden changes in wind direction, usually near thunderstorms or jet streams.
    • Mountain Waves: Oscillations on the downwind side of mountains when strong winds flow towards mountains perpendicularly.

Are Turbulence Incidents Dangerous?

  • The danger depends on the nature and intensity of the turbulence.
  • Pilots are trained to handle turbulence, but severe cases have caused accidents.
  • Contributing factors include poor pilot training, lack of weather information dissemination, and inadequate weather forecasting.
  • Example: In 2022, a SpiceJet Boeing 737-800 encountered severe turbulence, resulting in injuries to passengers.

Passenger Safety Measures

  • The Federal Aviation Administration (FAA) advises passengers to keep their seat belts fastened at all times.
  • Passengers should:
    • Follow flight attendants’ instructions.
    • Pay attention to seat belt signs.
    • Use seat belts even when the flight appears smooth.
    • Ensure children have appropriate safety devices.
    • Store carry-on items securely.

Airlines’ Avoidance Measures

  • The FAA recommends airlines to:
    • Enhance communication with pilots.
    • Monitor weather patterns and adjust flight paths accordingly.
    • Advise pilots on potential turbulence areas.
    • Use weather data to plan safer routes and avoid hazardous conditions.

Examples, Data And Case Studies

  • Governance (GS 2): The Supreme Court ruled that lawyers, as professionals, cannot be subjected to legal proceedings for providing faulty services under the Consumer Protection Act 2019 (CPA).
    • However, it rejected similar arguments for medical professionals and decided that its judgement in Indian Medical Association vs V P Shantha (1995) should be referred to a larger bench for reconsideration.

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I, Sakshi Gupta, am a content writer to empower students aiming for UPSC, PSC, and other competitive exams. My objective is to provide clear, concise, and informative content that caters to your exam preparation needs. I strive to make my content not only informative but also engaging, keeping you motivated throughout your journey!

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