MULTIMODAL ARTIFICIAL INTELLIGENCE
1. Context
In the realm of artificial intelligence (AI), the next frontier is undoubtedly multimodal systems, allowing users to engage with AI through various modes of communication. While chatbots have demonstrated competence in text-based interactions, they fall short of capturing the richness of human cognition, which integrates images, sounds, videos, and text. To create AI systems that truly emulate human-like thinking, the logical progression is towards multimodal AI.
2. Other Artificial Intelligence
- In this race towards multimodal AI, leading AI companies are vying for dominance.
- OpenAI, the creator of ChatGPT, recently announced its GPT-3.5 and GPT-4 models' ability to analyze images and engage in spoken conversations via mobile apps.
- This move comes after reports of Google's forthcoming multimodal large language model named Gemini, which has raised the stakes in this competition.
- Google holds an advantage due to its vast repository of images and videos through its search engine and YouTube.
- However, OpenAI is aggressively pursuing multimodal capabilities, hiring experts and working on a project called Gobi, distinct from its GPT models.
3. About Multimodality
- Multimodal AI systems are not entirely new. Recent years have witnessed the emergence of such systems, including OpenAI's DALL·E, a text-to-image model released in 2021, which underpins ChatGPT's vision capabilities.
- DALL·E, like other multimodal models, links text and images during training, allowing it to generate images based on textual prompts.
- Similarly, for audio-based systems, GPT relies on Whisper, an open-source speech-to-text model.
- Whisper can convert speech in audio into text, extending GPT's capabilities to voice processing.
4. Applications of Multimodal AI
- Multimodal AI systems find applications across various domains. They combine computer vision and natural language processing or audio and text to perform tasks like automatic image captioning.
- Beyond these, more complex systems are in development. Meta, for instance, has explored multimodal systems for detecting harmful memes on Facebook and predicting dialogue lines in videos.
- These systems hold potential for future applications involving multiple sensory inputs, such as touch, smell, and brain signals.
- In fields like medicine, multimodal AI is indispensable for analyzing complex datasets of images and translating them into plain language.
- Additionally, multimodal AI has significance in autonomous driving and robotics.
5. The Future of Multimodal AI
- The future of multimodal AI is poised for exciting possibilities. AI systems could cross-reference sensory data to create immersive experiences, and industries like medicine and translation services will continue to benefit from these advancements.
- As technology evolves, multimodal AI is expected to play a pivotal role in shaping our interactions with AI systems, making them more versatile and attuned to human-like cognition.
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For Prelims: artificial intelligence, ChatGPT, DALL·E,
For Mains:
1. What is multimodal artificial intelligence and why is it important? (250 Words)
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Previous Year Questions
1. With the present state of development, Artificial Intelligence can effectively do which of the following? ( UPSC 2020)
1. Bring down electricity consumption in industrial units
2. Create meaningful short stories and songs
3. Disease diagnosis
4. Text-to-Speech Conversion
5. Wireless transmission of electrical energy
Select the correct answer using the code given below:
A. 1, 2, 3, and 5 only
B. 1, 3, and 4 only
C. 2, 4, and 5 only
D. 1, 2, 3, 4 and 5
Answer: B
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Source: The Hindu
SCHEDULED AREAS IN INDIA
1. Introduction
India’s 705 Scheduled Tribe (ST) communities making up 8.6% of the country’s population live in 26 States and six Union Territories. Article 244, about the administration of Scheduled and Tribal Areas, is the single most important constitutional provision for STs. Article 244(1) provides for the application of Fifth Schedule provisions to Scheduled Areas notified in any State other than Assam, Meghalaya, Tripura, and Mizoram. The Sixth Schedule applies to these States as per Article 244(2).
2. Scheduled Areas in India
- Scheduled Areas (SAs) in India cover 11.3% of the country's land area and are notified in 10 States: Andhra Pradesh, Telangana, Odisha, Jharkhand, Chhattisgarh, Madhya Pradesh, Rajasthan, Gujarat, Maharashtra, and Himachal Pradesh.
- In 2015, Kerala proposed to notify 2,133 habitations, five-gram panchayats, and two wards in five districts as SAs, but this proposal is awaiting the Indian government's approval.
- Despite persistent demands by Adivasi organizations, many villages in the 10 States with SAs and in other States with ST populations have been left out.
- As a result, 59% of India's STs remain outside the purview of Article 244 of the Constitution, which provides for the administration of SAs.
- This means that they are denied rights under the laws applicable to SAs, including the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 and the Biological Diversity Act 2002.
3. Bhuria Committee Recommendations
- In 1995, the Bhuria Committee, constituted to recommend provisions for the extension of panchayat raj to SAs, recommended including these villages in SAs, but this has not been done yet.
- The standard bureaucratic response to this has been that there are no viable ST-majority administrative units.
- This argument has also been used to demand the denotification of parts of SAs where STs are now a minority due to the influx of non-tribal individuals.
4. Governance of Scheduled Areas
- The President of India notifies India's Scheduled Areas.
- States with Scheduled Areas need to constitute a Tribal Advisory Council with up to 20 ST members to advise the Governor on matters referred to them regarding ST welfare.
- The Governor submits a report every year to the President regarding the administration of Scheduled Areas.
- The national government can give directions to the State regarding the administration of Scheduled Areas.
- The Governor can repeal or amend any law enacted by Parliament and the State Legislative Assembly in its application to the Scheduled Area of that State.
- The Governor can also make regulations for a Scheduled Area, especially to prohibit or restrict the transfer of tribal land, regulate the allotment of land to STs, and regulate money-lending to STs.
- PESA empowers gram sabhas to exercise substantial authority through direct democracy and states that structures “at the higher level do not assume the powers and authority” of the gram sabha.
5. Determination of Scheduled Areas
- The President of India has the exclusive power to declare any area to be a Scheduled Area. This power has been upheld by the Supreme Court of India.
- In 2006, the Supreme Court held that the identification of Scheduled Areas is an executive function and that it does not possess the expertise to scrutinise the empirical basis of the same.
- In 2016, the Jharkhand High Court dismissed a challenge to the notification of a Scheduled Area because the ST population there was less than 50% in some blocks.
- The court observed that the declaration of a Scheduled Area is "within the exclusive discretion of the President".
6. Identification of the Scheduled Areas
Neither the Constitution nor any law provides any criteria to identify Scheduled Areas.
Based on the 1961 Dhebar Commission Report, the guiding norms for declaring an area as a Scheduled area are:
- Preponderance of tribal population
- Compactness and reasonable size of the area
- A viable administrative entity
- Economic backwardness of the area relative to neighbouring areas
- No law prescribes the minimum percentage of STs in such an area nor a cut-off date for its identification.
- The Bhuria Committee recognised a face-to-face community, a hamlet or a group of hamlets managing its own affairs to be the basic unit of self-governance in Scheduled Areas.
- The Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA) defined a ‘village’ as ordinarily consisting of “a habitation or a group of habitations, or a hamlet or a group of hamlets comprising a community and managing its affairs by traditions and customs”. All those “whose names are included in the electoral rolls” in such a village constituted the gram sabha.
- The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (FRA Act) adopted PESA’s definition of a village. Here, too, the gram sabhas are the statutory authority to govern the forests under their jurisdiction.
7. The Wayforward
- All habitations or groups of habitations outside Scheduled Areas in all States and Union Territories where STs are the largest social group will need to be notified as Scheduled Areas irrespective of their contiguity.
- The geographical limit of these villages will need to be extended to the ‘community forest resource’ area on forest land under the FRA 2006 where applicable, and to the customary boundary within revenue lands made possible through suitable amendments to the relevant State laws.
- The geographical limits of the revenue village, panchayat, taluka, and district will need to be redrawn so that these are fully Scheduled Areas.
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For Prelims: Schedule areas, The Panchayats (Extension to Scheduled Areas) Act, 1996, The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, Dhebar Commission, Bhuria Committee, Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013, the Biological Diversity Act 2002, Article 244
For mains:
1. Discuss the geographical distribution of Scheduled Areas in India and the challenges faced in extending their coverage to benefit ST communities. (250 Words)
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Previous Year Questions
1. Under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, who shall be the authority to initiate the process for determining the nature and extent of individual or community forest rights or both? (UPSC 2013) A. State Forest Department B. District Collector/Deputy Commissioner C. Tahsildar/Block Development Officer/Mandal Revenue Officer D. Gram Sabha Answer: D 2. Based on the Sixth Schedule of Indian Constitution, with respect to the tribal areas of Assam, Meghalaya, Tripura and Mizoram (DSSSB PRT General Section Officer 2019)
Which of the following can the Governor of a State do?
1. Can create a new autonomous district
2. The area of atonomous district can be increased
A. 1 Only
B. 2 Only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: C
3. If a particular area is brought under the Fifth Schedule of the Constitution of India, which one of the following statements best reflects the consequence of it? (UPSC 2022)
A. This would prevent the transfer of land of tribal people to non-tribal people.
B. This would create a local self-governing body in that area.
C. This would convert that area into a Union Territory.
D. The State having such areas would be declared a Special Category State.
Answer: A
4. Provisions of the Panchayats (Extension to Scheduled Areas) Act, 1966 (PESA) (UPSC CAPF 2018)
A. Extends greater say to local tribe community over common resources
B.Provides greater devolution of powers to Scheduled Tribes
C.Extends Provisions of 73rd Constitutional Amendment to Scheduled Areas
D. Bring Scheduled Areas under the better control of Local Panchayats
Answer: C
5. At the National level, which ministry is the nodal agency to ensure effective implementation of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006? (UPSC 2021)
A. Ministry of Environment, Forest and Climate Change
B. Ministry of Panchayati Raj
C. Ministry of Rural Development
D. Ministry of Tribal Affairs
Answer: D
6. Consider the following statements: (UPSC 2019)
1. As per recent amendment to the Indian Forest Act, 1927, forest dwellers have the right to fell the bamboos grown on forest areas.
2. As per the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, bamboo is a minor forest produce.
3. The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 allows ownership of minor forest produce to forest dwellers.
Which of the statement given above is/are correct?
A. 1 and 2 only B. 2 and 3 only C. 3 only D. 1, 2 and 3
Answer: B
7. Consider the following statements about Particularly Vulnerable Tribal Groups (PVTGs) in India: (UPSC 2019)
1. PVTGs reside in 18 States and one Union Territory.
2. A stagnant or declining population is one of the criteria for determining PVTG status.
3. There are 95 PVTGs officially notified in the country so far.
4. Irular and Konda Reddi tribes are included in the list of PVTGs.
Which of the statements given above are correct?
A. 1, 2 and 3 B. 2, 3 and 4 C. 1, 2 and 4 D. 1, 3 and 4
Answer: C
8. The Government enacted the Panchayat Extension to Scheduled Areas (PESA) Act in 1996. Which one of the following is not identified as its objective? (UPSC 2013)
A. To provide self-governance
B. To recognize traditional rights
C. To create autonomous regions in tribal areas
D. To free tribal people from exploitation
Answer: C
9. Which one of the following is mainly associated with Panchayati Raj in the tribal areas? (RPSC 2019)
A. Doomar Lal Baitha Committee
B. Sadik Ali Committee
C. Dilip Singh Bhuria Committee
D. P.K. Thungan Committee
Answer: C
10. Article _____ of the Constitution of India deals with provisions related to the administration and control of Scheduled Areas and Scheduled Tribes. (SSC CGL 2020)
A. 222(1) B. 244(1) C. 244(2) D. 222(2)
Answer: B
11. The Biological Diversity Act 2002 was born out of India’s attempt to realise the objectives of enshrine in the (Haryana 2014)
A. United Nation Convention on Biological Diversity (CBD) 1991
B. United Nation Convention on Biological Diversity (CBD) 1992
C. United Nation Convention on Biological Diversity (CBD) 1993
D. United Nation Convention on Biological Diversity (CBD) 1994
Answer: B
12. Under Land Acquisition, Rehabilitation and Resettlement Act, 2013 stipulates mandatory consent of how much people in Public-Private Partnership Project? (Jharkhand Civil Service 2016)
A. 50% B. 60% C. 70% D. 80%
Answer: C
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Source: The Hindu
WOMEN'S LABOUR MARKET OUTCOMES
1. Context
The Nobel Prize in Economics for 2023 was awarded Monday (October 9) to Claudia Goldin, a Harvard University professor, for “having advanced our understanding of women’s labour market outcomes”.
Goldin’s pathbreaking work has shed light on the participation of women in the labour market over the past 200 years, and why the pay gap between men and women refuses to close even as many women are likely to be better educated than men in high income countries.
2.Key findings of the report
2.1.Older data gave more perspective
Goldin reached back to older data to reveal that before industrialisation, more women were likely to have been involved in economic activity related to agriculture and various cottage industries
With greater industrialisation, work was concentrated in factories, and women found it difficult to leave their homes and travel to work.
2.2. Limitations of marriage
- Goldin’s work found that by the beginning of the 20th century, while around 20 per cent of women were gainfully employed, the share of married women was only five per cent.
- Legislation known as “marriage bars” often prevented married women from continuing their employment as teachers or office workers
- Despite an increasing demand for labour, married women were excluded from parts of the labour market
- This type of legislation peaked during the 1930s’ Great Depression and the years following it – but was not the only reason.
- Goldin also demonstrated that there was another important factor in the slow reduction of the gap between men’s and women’s rates of employment, namely women’s expectations for their future careers
- Women’s expectations were based on the experience of their mothers, and thus their educational and professional decisions were not taken with the expectation of having a long, uninterrupted, and fruitful career
2.3. Contraceptive pills
- By the end of the 1960s, as easy-to-use contraceptive pills became more popular, women could exercise greater control over childbirth and actually plan careers and motherhood.
- Women also ventured beyond the services sector, studying subjects like law, economics, and medicine.
- Now, women were catching up in terms of education and fields of employment. However, one glaring gap still remained and continues to this day - the gender-based pay gap.
2.4. Parenthood and Pay gap
- Till the time men and women worked in factories, where the pay depended on the day’s countable output, the pay gap was not too high
- It became wider when monthly pay contracts came into the picture. One factor significantly impacted how men were paid versus women — childbirth
- As women had to shoulder more of the parenting responsibilities once a child was born, they were also punished for this at the work front in terms of a slower rise on the payscale
- From 2010 that initial earnings differences are small. However, as soon as the first child arrives, the trend changes; earnings immediately fall and do not increase at the same rate for women who have a child as they do for men, even if they have the same education and profession
3. Nobel for Economics
A Nobel Prize in Economics was not part of Alfred Nobel’s 1895 will that established the other prizes
The prize is based on a donation received by the Nobel Foundation in 1968 from Sveriges Riksbank (Sweden’s central bank), on the bank’s 300th anniversary.
It is formally called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.
Goldin is only the third woman to win this honour.
In 2009, Elinor Ostrom got the award along with Oliver E Williamson, while in 2019, Esther Duflo shared it with Abhijit Banerjee and Michael Kremer.
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Previous Year Questions
1.Which of the following statements about the employment situation in India according to periodic Labour Force Survey 2017-18 is/are correct? (UPSC CAPF 2020)
1. Construction sector gave employment to nearly one-tenth of the urban male workforce in India
2. Nearly one-fourth of urban female workers in India were working in the manufacturing sector
3. One-fourth of rural female workers in India were engaged in the agriculture sector
Select the correct answer using the code given below:
A. 1 Only
B. 1 and 2 Only
C. 1 and 3 Only
D. 1, 2 and 3
Answer (B)
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Source: indianexpress
GAZA-100 YEARS HISTORY
1. Context
The October 7 2023 attack by Hamas on Israel, in which more than 700 Israelis are estimated to have been killed as of Monday, is believed to be the Palestinian militant group’s response to attempts at achieving “normalisation” of relations between Israel and other Muslim countries in West Asia.
2. Hafia-Gaza
- Ten months before Haifa, the lancers and Gurkha riflemen had played a key role in another battle, fought south of Haifa in a land hugging the same Mediterranean coastline. The Third Battle of Gaza in November 1917 became the turning point in the Palestine campaign.
- The Indians fought alongside the Empire forces against the Ottomans under German General Kress von Kressentstein and the Yildirim Army Group led by Erich von Falkenhayn, who had been the Prussian Minister of War and Chief of the German General Staff. This Ottoman unit contained elements of the German Asia Corps.
- The Imperial Service Cavalry Brigade cut through Gaza and advanced up to the north-east end of the Gaza Strip. Intense maneuvers and engagements later, the Ottoman forces retreated.
3. Gaza Patti
- Indians call the Gaza Strip the Gaza Patti. And it is just that — a sliver of land between Israel and Egypt, the Mediterranean to its west, home to more than 20 lakh Palestinians in an area barely 365 sq km in size, one of the most densely populated regions on the planet.
- The Gaza Strip and West Bank constitute the State of Palestine, and India became one of the first countries to grant it recognition in 1988. Eight years later, India opened a representative office in Gaza, which was shifted in 2003 to Ramallah, a city in the West Bank and the de facto capital of the State of Palestine.
- Occupied by the British in 1918 after the defeat of the Ottomans in the Great War, Gaza passed into Egyptian hands following the 1948 Arab-Israeli War at the end of the British Mandate for Palestine
- An All-Palestine Government functioned as an Egyptian puppet regime, but that pretence ended in 1959 when it was dissolved by Gamal Abdel Nasser and Cairo’s military rulers seized control of the Strip
- In June 1967, threatened by a coalition of Arab states, Israel launched preemptive airstrikes against Egyptian airfields and military facilities. Its ground troops overran the Gaza Strip and Sinai Peninsula, seizing it from the Egyptians.
- It also took the West Bank, including East Jerusalem, from the Jordanians and the Golan Heights from the Syrians. The Six-Day War ended in a decisive Israeli victory.
4. Realisations after War
- The Yom Kippur War of October 1973, in which Israel again defeated the Arab coalition after being surprised on the Jewish holy day, was to shape the course of the present. There was realisation even in Israel that a state-of-war preparedness could not go on forever.
- As the Egyptians moved out of the Soviet constellation, efforts were stepped up to negotiate a peace process
- The Camp David Accords of 1978 changed politics in the region — Israel agreed to pull out of Sinai if Egypt were to establish diplomatic ties
- Part of the framework of the Accords was to recognise the rights of the Palestinian people and the formation of an autonomous governing body in the Gaza Strip and West Bank.
- The Accords led to the Nobel Peace Prize for President Anwar Sadat of Egypt and Prime Minister Menachem Begin of Israel in 1978
- The Egypt-Israel peace treaty followed next year, which agitated the Palestinians and prompted the Arab League to suspend Egypt.
- In 1981, Sadat was assassinated by the Egyptian Islamic Jihad as he watched a military parade to mark eight years of the crossing of the Suez by the Egyptians during the Yom Kippur War.
- The Oslo Accords of 1993 and 1995 led to the creation of the Palestinian National Authority with the Fatah-controlled administration controlling parts of the West Bank and, until 2006, the Gaza Strip.
- That year, Hamas, the militant Palestinian organisation founded in 1987 with the aim of armed resistance to Israeli occupation, won the elections.
- A year later, they ousted Fatah — which was co-founded by Yasser Arafat in 1959 and which is now led by President Mahmoud Abbas — from Gaza, and took full control of the Strip.
5. Gaza Exit Plan
- Two years before Hamas seized control, the government of Ariel Sharon unilaterally dismantled 21 Israeli settlements in the Gaza Strip and four in the West Bank, an action that generated considerable heat and talk inside and outside Israel
- In August 2005, Netanyahu, who was Sharon’s main challenger in the Likud Party, resigned from the government as it gathered to approve the first phase of the pullout, saying he could not be part of any unilateral plan that offered nothing in return
- Under the disengagement plan, Israeli settlements were dismantled, some 9,000 settlers were evicted, and the troops pulled out.
- Palestinians were told that under the Oslo agreements, Israel would continue to control the airspace over Gaza and the territorial waters
- The Strip had seven border crossings for movement of goods and people. Following a blockade in 2007, only the crossings at Rafah on the Egyptian end, and Erez at the Strip’s northern end with Israel, can be used by people.
- Israel has rejected criticism that it has turned the Strip into an open-air prison.
6. Way forward
The Hamas raids inside Israel, the killings and the rocket barrage over the weekend, have turned the spotlight on Netanyahu and his government. While Israeli aircraft have been carrying out strikes in Gaza as troops and armour mass, what remains to be seen is how far the Israel Defense Forces go.
Source: indianexpress
CAPITAL EXPENDITURES (CapEx)
1. Context
Aided by the front-ending of capex loans by the Centre, the state governments’ capital expenditure seem to have grown much faster than last year in April-August period of the current financial year.
2. What Are Capital Expenditures (CapEx)?
Capital expenditures, often abbreviated as CapEx, refer to the funds that a company or organization invests in acquiring, upgrading, or maintaining physical assets that are expected to generate future economic benefits over an extended period of time. These assets are typically used in the company's operations to generate revenue and are not meant for immediate consumption.
Capital expenditures can cover a wide range of items and projects, including:
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Property and Real Estate: Purchasing or renovating buildings, land, or other real estate properties for business use.
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Machinery and Equipment: Buying, upgrading, or maintaining machinery and equipment used in manufacturing, production, or other operational processes.
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Vehicles: Acquiring and maintaining vehicles for business purposes, such as delivery trucks or company cars.
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Technology and Software: Investing in computer hardware, software, and IT infrastructure to improve efficiency and productivity.
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Infrastructure: Building or upgrading infrastructure projects like roads, bridges, and utility systems that are essential for business operations.
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Research and Development (R&D): Allocating funds to develop new products, services, or technologies that will benefit the company in the long term.
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Acquisitions: Purchasing other companies or assets that are expected to contribute to the company's growth and profitability.
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Leasehold Improvements: Making improvements to leased properties or facilities to meet the company's specific needs.
3. What are the types of capital expenditures?
Capital expenditures (CapEx) can be categorized into several types based on the nature of the investment and the assets being acquired or improved. Here are some common types of capital expenditures:
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Maintenance Capital Expenditures: These are expenditures made to maintain the existing physical assets in their current condition. They are necessary to keep assets operational and extend their useful life. Maintenance CapEx includes routine repairs, servicing, and replacement of worn-out parts. It helps prevent asset deterioration and ensures ongoing business operations.
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Expansion Capital Expenditures: Expansion CapEx involves investments made to increase the productive capacity of a business or to enter new markets. This can include building new facilities, purchasing additional machinery and equipment, and expanding existing operations. Expansion CapEx is typically aimed at growing the business and increasing revenue.
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Replacement Capital Expenditures: Replacement CapEx involves replacing existing assets with new ones of similar or improved functionality. This is done when the old assets become obsolete, inefficient, or unreliable. For example, replacing outdated computer servers or upgrading manufacturing equipment to improve efficiency.
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Strategic Capital Expenditures: These are investments made to achieve specific strategic objectives of the company. This can include investments in research and development (R&D) to develop new products or technologies, entering new markets, or acquiring another company to gain a competitive advantage.
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Compliance and Safety Capital Expenditures: Some CapEx is required to ensure that a business complies with safety regulations and industry standards. This can include investments in safety equipment, environmental compliance, or upgrades to meet changing regulatory requirements.
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Information Technology (IT) Capital Expenditures: Investments in IT infrastructure, software, and hardware fall into this category. It includes spending on servers, computer systems, software development, and data center facilities.
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Infrastructure Capital Expenditures: Governments and businesses may invest in infrastructure projects like building or repairing roads, bridges, airports, railways, and utility systems. These projects contribute to the overall development and functioning of a region or business.
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Research and Development (R&D) Capital Expenditures: Companies invest in R&D to develop new products, services, or technologies. R&D CapEx can include expenditures on laboratory facilities, equipment, and personnel involved in research and product development.
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Leasehold Improvements: These expenditures involve customizing and improving leased properties or facilities to meet a company's specific needs. They may include renovations, interior design, and installation of equipment for leased spaces.
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Marketing and Advertising Capital Expenditures: While marketing and advertising expenses are typically considered operating costs, certain marketing investments may be classified as CapEx if they have a long-term impact, such as building a brand or expanding market reach through the acquisition of assets like trademarks or copyrights.
4. Capital Spending
Capital spending, also known as capital investment or capital expenditure (CapEx), refers to the allocation of financial resources by individuals, businesses, or governments to acquire, upgrade, or expand physical assets and infrastructure with the aim of generating future economic benefits.
Capital spending can encompass a wide range of investments in tangible and intangible assets, including machinery, buildings, technology, research and development, and infrastructure.
The impact of capital spending on an economy:
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Capital spending can stimulate economic growth by increasing the productive capacity of an economy. When businesses invest in new machinery, technology, or infrastructure, they become more efficient and can produce more goods and services. This increased production can lead to higher economic output and GDP growth.
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Capital investments often require labor for construction, maintenance, and operation. This can lead to job creation, reducing unemployment rates and boosting consumer spending as more people have income to spend.
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Capital spending typically results in the adoption of advanced technology and improved processes. This enhances productivity, which is a key driver of long-term economic growth. Higher productivity means more can be produced with the same or fewer resources.
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Investments in research and development (R&D) and technology can foster innovation and increase a country's competitiveness on the global stage. This can attract foreign investment and strengthen an economy's position in international markets.
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Capital spending on infrastructure projects like roads, bridges, and utilities can enhance the overall business environment. Efficient infrastructure reduces transportation costs, facilitates trade, and attracts investment
5. Capital Expenditures vs Revenue expenditures
The key distinction between capital expenditure and revenue expenditure is that CapEx relates to investments in long-term assets that provide benefits over multiple periods and are recorded on the balance sheet, while revenue expenditure represents day-to-day operating expenses that are fully expensed in the income statement for the current period. Accurately distinguishing between these two types of expenditures is crucial for financial reporting, tax purposes, and decision-making within a business
| Subject | Capital Expenditure | Revenue Expenditure |
| Nature | CapEx represents investments in assets that are expected to provide economic benefits to a business over an extended period, typically more than one accounting period. These assets are used to generate revenue or provide long-term benefits to the company. Examples include the purchase of buildings, machinery, equipment, vehicles, and intangible assets like patents and trademarks. | Revenue expenditure, on the other hand, represents day-to-day operating expenses that are incurred to maintain the normal business operations and generate immediate revenue. These expenses are considered part of the regular cost of doing business. Examples include salaries and wages, rent, utilities, office supplies, and advertising expenses. |
| Timing | CapEx is incurred when a business acquires or improves a long-term asset. The benefits from the investment are expected to be realized over several accounting periods, and the asset's value is usually spread out through depreciation or amortization over its useful life. | Revenue expenditure is incurred for ongoing, day-to-day operations and is typically related to the current accounting period. These expenses are fully recognized in the income statement in the period they are incurred. |
| Accounting | CapEx is recorded on the balance sheet as an asset. It is then depreciated (for physical assets) or amortized (for intangible assets) over its estimated useful life. The cost is gradually expensed over time, matching the cost with the revenue generated from the asset. | Revenue expenditures are immediately expensed in the income statement in the period they occur. They reduce the company's net income for that period. |
| Profitability | CapEx does not directly impact the current period's profitability to the same extent as revenue expenditure. Instead, it affects profitability over several accounting periods as depreciation or amortization expenses are recognized. | Revenue expenditures directly impact the current period's profitability, as they are expensed immediately, reducing the net income for the period. |
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For Prelims: Economic and Social Development
For Mains: General Studies III: Government Budgeting and Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment
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Previous Year Questions
1.With reference to the expenditure made by an organisation or a company, which of the following statements is/are correct ? (UPSC CSE 2022)
1. Acquiring new technology is capital expenditure.
2. Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure.
Select the correct answer using the code given below :
A. 1 Only
B. 2 Only
C. Both 1 and 2
D. Neither 1 nor 2
Answer (A)
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Source: indianexpress
EARTHQUAKE
1. Context
Devastating earthquakes struck Afghanistan on Saturday, resulting in the loss of lives of over 2,000 people and more than 9,000 injuries, the Taliban government has said. These seismic events mark the deadliest tremors experienced in the earthquake-prone mountainous region in several years. A 6.3 magnitude earthquake, followed by strong aftershocks, killed several residents and damaged property in western Afghanistan
2. What is an Earthquake?
An earthquake is an intense shaking of the ground caused by movement under the earth’s surface. It happens when two blocks of the earth suddenly slip past one another, according to USGS. This releases stored-up ‘elastic strain’ energy in the form of seismic waves, which spreads through the earth and cause the shaking of the ground.
3. How do exactly Earthquakes Occur?
- As we know, the earth’s outermost surface, crust, is fragmented into tectonic plates. The edges of the plates are called plate boundaries, which are made up of faults.
The tectonic plates constantly move at a slow pace, sliding past one another and bumping into each other. - As the edges of the plates are quite rough, they get stuck with one another while the rest of the plate keeps moving.
- Earthquake occurs when the plate has moved far enough and the edges unstick on one of the faults.
- The location below the earth’s surface where the earthquake starts is called the hypocenter, and the location directly above it on the surface of the earth is called the epicenter.”
4. Earthquake waves
The release of energy during an earthquake generates waves which are called Earthquake Waves. Earthquake waves are basically of two types body waves and surface waves.
Body waves: They are generated due to the release of energy at the focus and move in all directions traveling through the body of the earth. Hence, the name body waves. The body waves interact with the surface rocks and generate a new set of waves called surface waves.
Surface waves: These waves move along the surface. The velocity of waves changes as they travel through materials with different densities. The denser the material, the higher the velocity. Their direction also changes as they reflect or refract when coming across materials with different densities.
There are two types of body waves. They are called P and S-waves.
P-waves or ‘primary waves’ move faster and are the first to arrive at the surface. The P-waves are similar to sound waves. They travel through gaseous, liquid, and solid materials.
P-waves vibrate parallel to the direction of the wave. This exerts pressure on the material in the direction of propagation. As a result, it creates density differences in the material leading to stretching and squeezing of the material.
S-waves or secondary waves arrive at the surface with some time lag. They can travel only through solid materials. This characteristic of the S-waves is quite important. It has helped scientists to understand the structure of the interior of the earth.
The direction of vibrations of S-waves is Perpendicular to the wave direction in the vertical plane. Hence, they create troughs and crests in the material through which they pass. Surface waves are considered to be the most damaging waves.
5. Measuring of Earthquakes
- The earthquake events are scaled either according to the magnitude or intensity of the shock.
- The magnitude scale is known as the Richter scale. The magnitude indicates the energy released during the quake. It is expressed in absolute numbers 0-10.
- The intensity scale is named after Mercalli, an Italian seismologist. The intensity scale indicates the visible damage caused by the event. The range of intensity scale is from 1-12.
6. Turkey and Syria lie in a seismically active region
- The region where the earthquake struck lies along a well-known seismic fault line called the Anatolia tectonic block that runs through northern, central, and eastern Turkey.
- It is a seismically active zone-though not as active as, say, the Himalayan region which is one of the most dangerous regions in the world from the perspective of earthquakes.
- Large earthquakes, of magnitude 5 or higher, have not been very frequent in recent years. According to USGS, only three earthquakes of magnitude 6 or more have happened in the region since 1970. The last major quake in this area came in January 2020.
- The seismicity in this region is a result of interactions between the African, Eurasian, and Arabian plates. The Arabian plate is known to be pushing northward, which results in a slight westward movement for the Anatolian plate, where Turkey is located.
- The earthquake happened around the near-vertical fault line on the eastern Anatolian block, close to the Syrian border.
7. Shallow Earthquakes cause much greater damage
- Earthquakes in Turkey emerged from relatively shallow depths which made them devastating. The first earthquake, of magnitude 7.8, originated 17.9 km below the earth's surface.
- All the subsequent ones, including one of 7.5 magnitudes, emerged from even closer to the surface.
- Shallow earthquakes are generally more devastating because they carry greater energy when they emerge on the surface.
- Deeper earthquakes lose much of their energy by the time they come to the surface. The deeper quakes spread farther though- the seismic waves move conically upwards to the surface even as they lose energy while traveling greater distances and hence cause less damage.
8. Can earthquakes be predicted?
- An accurate prediction of an earthquake requires some sort of a precursory signal from within the earth that indicates a big quake is on the way.
- Moreover, the signal must occur only before large earthquakes so that it doesn’t indicate every small movement within the earth’s surface. Currently, there is no equipment to find such precursors, even if they exist.
- Theoretically, it is possible to offer a lead time of a few seconds between the time of the origin of the earthquake and the time it reaches the Earth’s surface.
- Seismic waves travel significantly slower than the speed of light between 5 and 13 km
per second. So if the earthquake is detected as soon as it is triggered, information about it can be related a few seconds ahead of it reaching the ground. - Such systems are already in use in some locations to issue alerts about earthquakes. However, these are not predictions. The alerts are issued post-event.
- Attempts to find reliable predictors of earthquakes have not been fruitful so far. Scientists have been able to map the areas that are earthquake-prone, and are likely to generate earthquakes in the future, but there is no way to predict when.
For Prelims & Mains
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For Prelims: Earthquake, Tectonic plates, Hypocenter, Epicenter, Body waves, Surface waves, P-waves or ‘primary waves’, S-waves or secondary waves, Richter scale, and Seismic waves.
For Mains: 1. What is an Earthquake? How do exactly Earthquakes Occur? Discuss the effects of Earthquakes.
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Source: The Indian Express
KEN-BETWA RIVER LINKING PROJECT
1. Context
It took government push over the last few weeks for the Rs 44,605-crore Ken-Betwa Link Project (KBLP) to secure the final forest clearance, six years after it got the provisional nod, and just in time for the upcoming Assembly elections in Madhya Pradesh
2. About Ken-Betwa Link Project
- It is the first project under the National Perspective Plan for the interlinking of rivers.
- It envisages transferring water from the Ken river to the Betwa river, both tributaries of the Yamuna.
- The Ken-Betwa Link Canal will be 221 km long, including a 2 km long tunnel.
- The project has two phases with mainly four components.
- Phase-I will involve one of the components Daudhan Dam complex and is subsidiary units such as Low-Level Tunnel, High-Level Tunnel, Ken-Betwa Link Canal, and powerhouses.
- Phase II will involve three components Lower Orr Dam, Bina Complex Project, and Kotha Barrage.
| According to the Jal Shakti Ministry, the project is expected to provide annual irrigation of 10.62 lakh hectares, supply drinking water to about 62 lakh people, and generate 103 MW of hydropower and 27 MW of solar power. |
- As per an official statement issued after the Cabinet approval on Wednesday, the total cost of the Ken-Betwa link project has been assessed at Rs.44,605 crores at 2020-21 price levels.
- The Union Cabinet has approved central support of Rs.39,317 crores for the project, covering a grant of Rs.36,290 crores and a loan of Rs.3,027 crores.
- The statement further said that the project is proposed to be implemented in 8 years with “state-of-the-art technology.
3. Special Purpose Vehicle (SPV)
- A Special Purpose Vehicle (SPV) for the project is called Ken-Betwa Link Project Authority (KBLPA) will be set up to implement the project.
- The Centre has set in motion the process of creating the National Interlinking of Rivers Authority (NIRA) is an independent autonomous body for planning, investigation, financing, and implementation of the interlinking of river (ILR) projects in the country.
- The NIRA will have the power to set up SPV for individual link projects.
Ken-Betwa project agreementOn March 22, 2021, a memorandum of agreement was signed between the Ministry of Jal Shakti and the governments of Madhya Pradesh and Uttar Pradesh to implement the Ken-Betwa Link Project (KBLP).
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4. Conceptualiztion of the project
- The idea of linking Ken with Betwa got a major push in August 2005, when a tripartite memorandum of understanding for the preparation of a detailed project report (DPR) was signed between the Centre and the two states.
- In 2008, the Centre declared KBLP a National Project. Later, it was included as part of the Prime Minister’s package for the development of the drought-prone Bundelkhand region.
- In April 2009, it was decided that the DPR will be prepared in two phases.
- In 2018, a comprehensive DPR including phase-I, II, and additional areas proposed by Madhya Pradesh was also prepared.
- It was sent to Uttar Pradesh, Madhya Pradesh, and the Central Water Commission in October 2018.
- The memorandum of agreement was signed to implement the project.
5. Benefits from Project
- The project lies in Bundelkhand, a drought-prone region, which spreads across 13 districts of Uttar Pradesh and Madhya Pradesh.
| According to the Jal Shakti Ministry, the project will be of immense benefit to the water-starved region, especially the districts of Panna, Tikamgarh, Chhatarpur, Sagar, Damoh, Datia, Vidisha, Shivpuri and Raisen of Madhya Pradesh, and Banda, Mahoba, Jhansi and Lalitpur of Uttar Pradesh. |
- It will pave the way for more interlinking of river projects to ensure that scarcity of water does not become an inhibitor for development in the country.
Image source: The Indian Express6. The Panna Tiger Reserve
- According to the National Water Development Agency under the Jal Shakti Ministry, the Daudhan dam, to be built on the Ken river, will be 77 meters high and its gross capacity will be 2,853 million cubic meters.
- According to the NWDA, the reservoir of Daudhan dam will involve “a submergence of 9000 ha area, out of which 5803 ha comes under Panna Tiger Reserve.
- The latter includes 4141 ha of forest area which is about 7.6% of the total Panna Tiger Reserve area”.
- To mitigate adverse impacts on Panna Tiger Reserve, as decided by NTCA,
- Landscape Management Plan to decide mitigation strategy concerning KenBetwa Link entrusted to Wildlife Institute of India, Dehradun, and is in its final stage.
- In addition to above three wildlife sanctuaries, viz Nauradehi, Rani Durgawati of MP and Ranipur WLF of UP are planned to be integrated with PTR for the proper conservation of Wild Life under Tiger Reserve.
7. The concept of river linking in India
- In the past, several river-linking projects have been taken up.
- For instance, the Periyar Project, under which the transfer of water from the Periyar basin to the Vaigai basin was envisaged, was commissioned in 1895.
- Other projects such as Parambikulam Aliyar, Kurnool Cudappah Canal, Telugu Ganga Project, and Ravi-Beas-Sutlej too were undertaken.
- In the 1970s, the idea of transferring surplus water from a river to a water-deficit area was mooted by the then Union Irrigation Minister Dr. K L Rao.
- Himself an engineer, he suggested the construction of a National Water Grid for transferring water from water-rich areas to water-deficit areas.
- Later, Captain Dinshaw J Dastoor proposed a Garland Canal to redistribute the water from one area to another.
- However, the government did not pursue these two ideas further.
- It was not until August 1980 that the Ministry of Irrigation prepared a National Perspective Plan for water resources development envisaging interbasin water transfer.
- The NPP comprised two components: Himalayan Rivers Development; and Peninsular Rivers Development. Based on the NPP, the National Water Development Agency (NWDA) identified 30 river links 16 under the Peninsular component and 14 under the Himalayan Component.
- Later, the river-linking idea was revived during the Atal Bihari Vajpayee regime.
- The Ken-Betwa Link Project is one of the 16 projects under the peninsular component.
8. Clearances for a river-linking project
Various types of clearances are required, such as techno-economic clearance (given by the Central Water Commission);
- Forest clearance, and environmental clearance (Ministry of Environment & Forests);
- Resettlement and rehabilitation plan of tribal population (Ministry of Tribal Affairs) and
- Wildlife clearance (Central Empowered Committee).
For Prelims & Mains
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For Prelims: river-linking projects, Ken-Betwa Link Project, Himalayan Rivers Development; and Peninsular Rivers Development, National Water Development Agency, Jal Shakti Ministry, The Panna Tiger Reserve, NitiAayog. Yamuna river, Ken-Betwa Link Project Authority (KBLPA),
For Mains:
1. Discuss the significance and hurdles of the Ken-Betwa River Link Project (250 Words)
2. What is River linking and discuss the significance of the River linking system in India (250 Words)
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Source: PIB and The Indian Express
