• Bharat Stage Emission Standards (BSES) are a series of emission standards established by the Central Government of India to regulate the output of air pollutants from internal combustion engine engines and Spark-ignition engines equipment, including motor vehicles (MCVs), three-wheelers (3Ws) and four-wheel drive (4WD) vehicles.
• The standards are based on the European emission standards and are designed to reduce vehicular emissions of particulate matter (PM), oxides of nitrogen (NOx), hydrocarbons (HC), carbon monoxide (CO) and sulfur dioxide (SO2).
• The first BSES norms were introduced in 2000 and have been progressively tightened since then. The current BSES norms, BSVI, were introduced in 2020 and are equivalent to the Euro 6/VI norms.
• The implementation of Bharat Stage standards aims to reduce vehicular pollution and improve air quality.
• These standards become increasingly stringent with each successive stage, requiring vehicles to adopt better emission control technologies. For instance, a move from BS-IV to BS-VI involved a significant reduction in the permissible levels of pollutants, particularly in the case of diesel vehicles.
• The adoption of Bharat Stage emission standards impacts the automotive industry, requiring manufacturers to upgrade engines and exhaust systems to comply with the new regulations. It's a step toward aligning India's vehicular emission norms with global standards to mitigate environmental pollution and improve public health

3. Euro V and Euro VI norms

Euro V and Euro VI are two sets of emission standards for road vehicles in the European Union (EU). They are designed to reduce air pollution from vehicles by setting limits on the amount of pollutants that vehicles can emit.

Euro V

Euro V was introduced in 2009 and applied to all new passenger cars, light commercial vehicles, and heavy-duty vehicles sold in the EU. It tightened the emission limits for nitrogen oxides (NOx), particulate matter (PM), and hydrocarbons (HC) compared to the previous Euro IV standards. Euro V also introduced stricter limits for carbon monoxide (CO) and sulfur dioxide (SO2) for certain vehicle categories.

Euro VI

Euro VI is the current set of emission standards for road vehicles in the EU. It was introduced in 2014 and applies to all new passenger cars, light commercial vehicles, and heavy-duty vehicles sold in the EU. Euro VI further tightened the emission limits for NOx, PM, and HC compared to Euro V. It also introduced new limits for black carbon (BC) and particle number (PN).

Key differences between Euro V and Euro VI

The main differences between Euro V and Euro VI are:

• NOx limits: Euro VI limits NOx emissions to 0.08 g/km for gasoline vehicles and 0.4 g/kWh for diesel vehicles, compared to 0.25 g/km for gasoline vehicles and 0.18 g/kWh for diesel vehicles under Euro V.
• PM limits: Euro VI limits PM emissions to 0.0045 g/km for gasoline vehicles and 0.005 g/km for diesel vehicles, compared to 0.005 g/km for both gasoline and diesel vehicles under Euro V.
• HC limits: Euro VI limits HC emissions to 0.075 g/km for gasoline vehicles and 0.10 g/km for diesel vehicles, compared to 0.07 g/km for gasoline vehicles and 0.15 g/km for diesel vehicles under Euro V.
• Real-world driving emissions (RDE) testing: Euro VI introduced RDE testing, which measures emissions from vehicles in real-world driving conditions. This is in addition to the laboratory testing that was used under Euro V.

Impacts of Euro V and Euro VI

Euro V and Euro VI have had a significant impact on air quality in the EU. They have helped to reduce emissions of NOx, PM, and HC from road vehicles, which has improved air quality and reduced the health impacts of air pollution.

Future of Euro VI

The European Commission is currently considering the next generation of emission standards for road vehicles, which are likely to be even stricter than Euro VI. These standards are expected to focus on reducing emissions of NOx, PM, and HC, as well as introducing new limits for other pollutants such as ammonia (NH3)

4. Difference between BS-IV and the new BS-VI

5.Significance of the Bharat Standard Norms

• These norms are crucial for reducing vehicular emissions of harmful pollutants like nitrogen oxides (NOx), particulate matter (PM), carbon monoxide (CO), and hydrocarbons (HC). By setting stricter limits with each successive stage, these standards aim to improve air quality and reduce the impact of vehicular pollution on the environment and public health.
• The Bharat Stage norms align India's vehicular emission standards with global benchmarks like Euro norms. This alignment is crucial for international cooperation, facilitating technology transfer, and ensuring that vehicles manufactured in India meet global environmental standards
• The implementation of these norms drives innovation and technological advancements in the automotive industry. Manufacturers need to continually improve engine technology, exhaust systems, and emission control mechanisms to comply with these stringent standards
•  Reduced vehicular emissions result in cleaner air, which has a direct positive impact on public health. Lower levels of pollutants contribute to a decrease in respiratory illnesses, cardiovascular diseases, and other health issues associated with poor air quality
• The establishment and enforcement of these standards signify a commitment from the government to address environmental concerns. It involves setting policies and regulations that encourage cleaner fuel usage, adoption of advanced technologies, and compliance from automotive manufacturers
• These standards pave the way for a more sustainable transportation sector by promoting the use of cleaner fuels, encouraging the development of eco-friendly vehicles, and contributing to overall environmental sustainability

AXOLOTI AND ORGAN REGENERATION

 

1. Context

Recently, Ecologists from Mexico’s National Autonomous University relaunched a fundraising campaign to bolster conservation efforts for axolotls, an iconic, endangered fish-like type of salamander.

 

2. What is an Axolotl?

• Axolotls are neotenic salamanders, meaning they retain their larval features throughout their adult lives.
• They possess external gills, a long tail, and a slender, elongated body. Their distinctive appearance, with feather-like gills protruding from behind their heads, has made them a popular subject of scientific study and public fascination.
• Axolotls, also known as Mexican walking fish, are neotenic salamanders native to Lake Xochimilco and surrounding canals in Mexico City.
• They are renowned for their unique appearance, remarkable regenerative abilities, and fascinating biological characteristics.

3. Reasons Why Axolotls so Famous

Axolotls have gained worldwide popularity due to their unique characteristics and scientific significance:

• Their external gills, allowing them to breathe directly from water, set them apart from other amphibians.
• Their lifelong retention of larval features, unlike other salamanders that undergo metamorphosis, has fascinated scientists and the public.
• Their remarkable ability to regenerate limbs, organs, and even parts of their brain has made them valuable models for regenerative medicine research.
• They exhibit remarkable tolerance to a wide range of water temperatures and oxygen levels, allowing them to thrive in their natural habitat.
• They hold cultural significance in Mexico, often depicted in Aztec mythology and artwork, symbolizing adaptability, transformation, and new beginnings.
• Their calm demeanour and unique features have endeared them to many pet enthusiasts.
• Their transparency and genetic similarity to humans make them valuable models for research on regeneration, development, and human diseases.
• Their critically endangered status has raised awareness and advocacy for their protection and conservation.

4. Axolotl Population Decline

Axolotl populations have experienced a drastic decline due to a combination of factors:

• Urbanization and pollution have reduced and degraded Lake Xochimilco, their primary habitat.
• Introduced species, like the American bullfrog, compete for food and prey, and prey on axolotl eggs and larvae.
•  Increased human activity has led to water pollution, habitat destruction, and the introduction of harmful chemicals.
• Rising water temperatures and fluctuating water levels disrupt their breeding cycles and make them more susceptible to diseases.
• Occasional capture for consumption contributes to population decline.
• Low genetic diversity makes them more vulnerable to environmental changes and diseases.

5. Axolotl and Organ Regeneration

Axolotls possess an astonishing capacity to regenerate limbs, organs, and even parts of their brain. This remarkable ability stems from their unique cellular and molecular mechanisms:

• Their cells can revert back to a more primitive state with the potential to regenerate into different cell types.
• They exhibit epimorphic regeneration, forming a blastema, a mass of undifferentiated cells at the injury site, which gradually differentiates and organizes to regenerate the lost structure.
• Specific genes, such as Hox genes and BMPs, play crucial roles in regulating cell proliferation, differentiation, and patterning during regeneration.

5.1. Axolotls can regenerate a wide range of tissues and organs

• They can completely regenerate limbs, including bones, muscles, nerves, and blood vessels.
• They can regenerate internal organs, such as the heart, lungs, and parts of the brain.
• They can regenerate damaged retinal cells, restoring vision after injury.

5.2. Implications for Regenerative Medicine

Axolotl regeneration holds promise for advancements in regenerative medicine:

• Understanding axolotl limb regeneration could lead to limb repair therapies in humans, restoring function and improving the quality of life for amputees.
• Elucidating axolotl organ regeneration could pave the way for organ regeneration in humans, offering new treatment options for conditions such as heart failure, liver disease, and kidney failure.
• Understanding axolotl tissue repair could lead to new therapies for tissue regeneration in humans, promoting wound healing, treating burns, and addressing other tissue damage.

6. The Way Forward

Research on axolotl regeneration is ongoing, aiming to unravel the complex mechanisms underlying their remarkable abilities. As we gain a deeper understanding, we can translate this knowledge into regenerative therapies for humans, with the potential for transformative advancements in medicine and healthcare.

 

For Prelims: axolotl, Mixco, American bullfrog, salamander fish, Lake Xochimilco,  For Mains:  1. Elaborate on the regenerative abilities of axolotls and their potential applications in advancing regenerative medicine for humans. (250 Words)

 

Previous Year Questions 1. Match the following: (MPSC Group C 2022)  Group 'A'                            Group 'B' (a) Salamander                   (i) Poikilothermic (b) Duckbilled Platypus     (ii) Sanguivorous (c) Leech                           (iii) Asymmetrical (d) Paramecium                (iv) Egg laying mammal A. (a) -(ii), (b) - (i), (c) - (iii), (d) - (iv) B. (a) -(i), (b) - (iv), (c) - (ii), (d) - (iii) C. (a) -(i), (b) - (ii), (c) - (iv), (d) - (iii) D. (a) -(ii), (b) - (iv), (c) - (i), (d) - (iii) Answer: B

 Source: The Indian Express

FACTORS OF PRODUCTION

 

 

1. Context

In the pre-Green Revolution era, agricultural production was primarily limited by the extent and quality of land available for cultivation. India’s farm sector, according to a NITI Aayog paper by Ramesh Chand and Jaspal Singh, grew by an average 2.8% a year during 1950-51 to 1961-62

 

2. Factors of Agriculture Production

• Before the Green Revolution, agricultural production was primarily constrained by the availability and quality of cultivable land.
• According to a NITI Aayog report authored by Ramesh Chand and Jaspal Singh, India’s agricultural sector experienced an average annual growth of 2.8% between 1950-51 and 1961-62.
• The quality of agricultural land relies on factors such as soil fertility and water accessibility. The most fertile lands were found in alluvial soils across regions like the Indo-Gangetic plains and deltas along the eastern coastlines of rivers like Kaveri, Krishna, Godavari, and Mahanadi.
• Following these were the black cotton soils in areas like the Deccan, Malwa, and Saurashtra plateaus, known for yielding higher crop output per acre compared to less fertile lands such as red, brown, laterite, mountain, and desert soils.
• The availability of water depended on both rainfall and the access to irrigation from various sources like rivers, lakes, tanks, and ponds. Historical civilizations mostly flourished in river valleys due to their capacity to sustain robust agricultural practices.
• In traditional farming methods, labor and energy played crucial roles. The productivity of the land was directly linked to the number of farm laborers and bullocks available.
• Before the introduction of modern machinery like tractors, threshers, harvester combines, and electric or diesel engine-driven tubewells, bullocks were the primary energy source on farms. They were responsible for plowing fields, treading crops for grain separation, and powering Persian wheels to draw water from wells for irrigation

3. Factors of technology

• Just like the four fundamental elements of production, there exist four elements within agriculture termed as the "factors of technology."
• These technological factors facilitate a more effective utilization of production elements, resulting in increased yields – generating more output from the same land area or labor force – and optimizing water resources. Additionally, they contribute to the substitution of animal and human power with mechanical and electrical sources.
• These four "factors of technology" encompass genetics, crop nutrition, crop protection, and agronomic interventions.
• Genetics primarily revolves around seeds and the science of plant breeding. The Green Revolution owes its success to the development of high-yielding wheat and rice varieties crafted by scientists such as Norman Borlaug, Henry Beachell, and Gurdev Singh Khush. These varieties were engineered with dwarfing genes that reduced plant height.
• Traditional plant varieties, characterized by tall and slender structures, didn't respond well to fertilizer or water applications. When laden with heavy grains, their ear-heads often bent or fell flat on the ground.
• In contrast, the new semi-dwarf varieties possessed sturdy stems that supported the grain-bearing panicles even with substantial fertilization, allowing for better nutrient absorption and conversion into grain.
• Beyond reduced height, plants contain genes responsible for disease and pest resistance, drought and heat tolerance, efficient nutrient utilization, and sturdy stems or compact canopies for mechanical harvesting. These desirable traits are encoded within the seeds of plant varieties developed through crossbreeding and agricultural biotechnology.
• Traditionally, farmers raised cattle not only for draft power and milk but also for their excreta, which served as essential nutrients for plant growth. Farmyard manure, a decomposed mix of dung, urine, and farm residues, contains approximately 0.5% nitrogen (N), 0.2% phosphorus (P), and 0.5% potassium (K) on average.
• The revolution in crop nutrition emerged with chemical fertilizers boasting significantly higher NPK content: Urea (46% N), di-ammonium phosphate (18% N and 46% P), and muriate of potash (60% K).
• Synthetic fertilizers, coupled with varieties responsive to increased nutrient doses, significantly elevated crop yields. Furthermore, farmers reduced labor associated with managing animals and handling their manure as fertilizers now came in ready-to-use bagged forms from factories.
• Increased yields also necessitated advancements in crop protection technologies, safeguarding plants against pests, pathogens (fungi, bacteria, and viruses), and weeds from planting to harvesting and marketing.
• Crop protection chemicals not only ensure the realization of yield gains from genetics and nutrition but also offer labor-saving benefits. For instance, herbicides substitute manual weed removal
• The last factor of technology is mechanisation and other agronomic interventions. Tractors, apart from rendering bullocks redundant, have made it possible to use implements such as rotavators and reversible mould board ploughs that can do deep tillage, mixing and pulverisation of the soils and break their hardpan layers
• Agronomic interventions also extend to water-saving technologies – drip irrigation and laser land levelers (which help in uniform placement of seed and fertiliser too) – and intercropping or growing more than one crop simultaneously on the same piece of land
• There are farmers today cultivating pomegranates in Rajasthan’s arid desert soils through drip irrigation and water-soluble/liquid fertilisers. There are similarly those using tractor-drawn machines to make raised beds in fields. They plant sugarcane on the furrows and various short-cycle crops – potato, onion, garlic, vegetables and pulses – on the raised beds

4. Significance of these factors

• The elements of technology, using economic terms, have essentially "shifted upwards the aggregate production function" within agriculture.
• Instead of merely increasing output by adding more inputs ("moving along the production function"), advancements in productivity have led to amplified output using the same or sometimes even fewer inputs.
• Put differently, there's a higher yield per acre, per agricultural worker, and per unit of water. This transformation is evident in India's net sown area, which experienced a modest increase of just 3.3% – from 135.4 lh to 139.9 lh – between 1961-62 and 2019-20, compared to a 14% rise from 1950-51 to 1961-62.
• The substantial growth in agricultural production over the past 50 years can largely be attributed to technological factors.

 

5. Way forward

Balancing and optimizing these factors are essential for achieving sustainable agricultural practices and ensuring food security while minimizing environmental impact and promoting the economic well-being of farmers and rural communities

 

Source: Indianexpress

EXTERNAL BENCHMARK-BASED LENDING RATE (EBLR)

 

 

 

1. Context

The external benchmark-based lending rate (EBLR) system of loan pricing, calibrated normalisation of surplus liquidity and robust credit growth strengthened the monetary policy transmission during the current rate tightening cycle, according to an article in the Reserve Bank of India’s (RBI’s) monthly bulletin

 

2. What is the external benchmark linked lending rate?

 

• An External Benchmark Linked Lending Rate (EBR or EBLLR) is a lending rate used by banks in India to set interest rates on loans such as home loans, personal loans, and other retail loans. This system was introduced by the Reserve Bank of India (RBI) to ensure more transparent and effective transmission of changes in policy rates to borrowers.
• Under this system, banks link their lending rates directly to external benchmarks like the RBI's repo rate, government treasury bill yields, or any other RBI-approved benchmark. The idea behind this is to ensure that changes in lending rates by banks are closely aligned with changes in the external benchmark, offering more immediate benefits to borrowers when there are changes in the broader interest rate environment.
• The external benchmark linked lending rate system ensures that borrowers experience faster transmission of changes in policy rates, making borrowing rates more responsive to changes in the economy. Banks are required to reset interest rates on loans linked to external benchmarks periodically, ensuring that changes in the benchmark rates are quickly reflected in the interest rates offered to borrowers.
• This system was introduced to bring more transparency, fairness, and efficiency in the transmission of monetary policy changes to end borrowers, providing them with the benefit of interest rate movements in a more timely manner

3.What is difference between EBLR and MCLR?

 

Subject	EBLR	MCLR
Benchmark Source	Linked to external benchmarks (e.g., RBI's repo rate, government T-bill yields)	Based on the bank's internal cost structure (e.g., cost of funds, operating expenses)
Transparency	Offers more transparent and immediate transmission of changes in policy rates to borrowers	Determined based on internal factors, leading to potentially delayed transmission of policy rate changes
Interest Rate Calculation	Rate determined by adding a margin to the prevailing external benchmark rate	Includes factors like the marginal cost of funds, tenor premium, operating expenses, and marginal profit margin
Regulatory Requirement	Introduced by the RBI to improve transmission of policy rate changes and enhance transparency	Mandated by the RBI to ensure better transmission of changes in the cost of funds to lending rates
Revision Frequency	Adjustments in lending rates closely track changes in the external benchmark rate	Rates reviewed and reset periodically by banks (monthly, quarterly, semi-annually) based on internal factors
Objective	Aims for immediate transmission of policy rate changes and increased transparency in lending rates	Ensures that changes in the cost of funds for banks are accurately reflected in lending rates

4. What is the surplus liquidity?

Surplus liquidity refers to the situation where the banking system has more funds available than needed for day-to-day operations and meeting regulatory requirements. This surplus arises when the available funds in the banking system exceed the demand for credit from borrowers.

Liquidity surplus and liquidity deficit refer to the states of excess or shortfall of funds in the banking system concerning the demand for funds. Here's a breakdown:

1. Liquidity Surplus:

   • Definition: Liquidity surplus occurs when there is an excess of funds available in the banking system compared to the demand for funds.
   • Causes: This surplus might arise due to factors such as lower credit demand, increased deposits, interventions by the central bank injecting liquidity, or improved economic conditions where the demand for credit is low.
   • Effects: Surplus liquidity can lead to lower short-term interest rates, making borrowing cheaper. It can also encourage investment and economic growth by providing more accessible credit.

2. Liquidity Deficit:

   • Definition: Liquidity deficit occurs when the demand for funds in the banking system exceeds the available funds.
   • Causes: This deficit may occur due to increased credit demand, withdrawal of deposits, or when the central bank reduces liquidity through measures like raising reserve requirements or withdrawing funds from the system.
   • Effects: Deficit in liquidity can result in higher short-term interest rates, making borrowing more expensive. It might also limit credit availability, impacting economic activities and growth.

Both liquidity surplus and deficit have implications for monetary policy, interest rates, and overall economic conditions:

• Monetary Policy Impact: Central banks, like the Reserve Bank of India (RBI), often use liquidity management tools to address surplus or deficit situations. For surplus liquidity, they might implement measures to absorb excess funds, such as open market operations (selling securities to absorb liquidity). In the case of liquidity deficit, the central bank might inject funds into the system through measures like repo operations to ensure adequate liquidity.

• Interest Rate Impact: Surplus liquidity tends to lower short-term interest rates, while liquidity deficit can push rates higher due to increased demand for available funds.

• Economic Implications: Surplus liquidity can stimulate investment and growth by making credit more accessible, while liquidity deficit can potentially constrain economic activities due to limited credit availability and higher borrowing costs.

5.Types of liquidity

The two primary types of liquidity are:

1. Asset Liquidity: This type of liquidity refers to the ease and speed at which an asset can be converted into cash without significantly affecting its price. Assets that can be quickly sold or converted into cash without substantial loss of value are considered highly liquid. Cash is the most liquid asset since it's readily spendable. Other examples of liquid assets include marketable securities, government bonds, certain stocks with high trading volumes, and certain types of mutual funds.

2. Funding Liquidity: Funding liquidity refers to the availability of funds to meet financial obligations and cover short-term liabilities. It's about the ability of an entity (such as a bank, company, or individual) to obtain the necessary funds to fulfill payment obligations when due. Funding liquidity involves having access to sources of financing or cash to meet daily operational needs, pay debts, or cover unexpected expenses. For banks, funding liquidity is essential to manage withdrawals by depositors and meet regulatory requirements.

Both asset liquidity and funding liquidity are crucial aspects of financial management. Having adequate asset liquidity ensures that assets can be converted into cash if needed, providing flexibility and risk mitigation. Meanwhile, funding liquidity ensures that entities have access to necessary funds to maintain their operations, fulfill obligations, and manage financial risks without disruptions. Balancing these two types of liquidity is crucial for financial stability and managing uncertainties in the market

6. Way forward

The RBI had mandated banks to link all retail loans and floating rate loans to micro and small enterprises (MSEs) to an external benchmark – the repo rate or 3-month T-bill rate or 6-month T-bill rate or any other benchmark market interest rate published by Financial Benchmarks India Private (FBIL), effective October 1, 2019

 

Source: Indianexpress