Current Affairs 12 November, 2024

Daily Current Affairs

Table of Content

National Affairs

1. International Solar Alliance (ISA)
2. Cabinet approves PM-Vidyalaxmi scheme to provide financial support to meritorious students

Defense

1. INAUGURATION OF C-295 FULL MOTION SIMULATOR AT AIR FORCE STATION AGRA

Economy

1. Retail inflation surges to 14-month high of 6.21% in October
2. COP29 Climate Summit Day 2 Highlights: UN Chief calls 2024 a ‘masterclass in climate destruction
3. RBI, Sebi unveil rules for converting excess investment by FPIs into FDI
4. SBI looks to raise Rs 10,000 crore through 15-year infra bonds next week

Agri Business

1. Maize research body seeks funding to undertake research on managing aflatoxin in DDGS
2. Excess rains spurs use of more herbicides this kharif cropping season

Banking and Finance

1. ADB Issues its First Biodiversity and Nature Bond
2. RBI releases 43rd half-yearly report on MFER

National Affairs

1. International Solar Alliance (ISA)

• Launched in 2015 by India and France at COP21 summit.
• Promotes solar energy as sustainable energy solution and climate change mitigation.
• India’s first international organization, reflecting multilateralism and carbon-neutral future.
• Has 120 Member and Signatory Countries.
• Aims to advance global solar cooperation, enhance energy security, and support cleaner energy systems.
• Launched initiatives to support solar energy projects and foster global cooperation.
• Launched the SolarX Startup Challenge, STAR-C Initiative, Global Solar Facility, Viability Gap Funding Scheme, Solar Data Portal, International Solar Festival, Green Hydrogen Innovation Centre, ISA Knowledge Series, and World Solar Reports.
• Mr. Ashish Khanna from India elected as its third Director General.

International Solar Alliance’s ‘Towards 1000’ Strategy

• Aims to unlock US$1 trillion in solar investments by 2030.
• Focuses on reducing technology and financing costs.
• Aims to provide energy access to 1 billion people and install 1,000 GW of solar energy capacity.
• Nine comprehensive programs targeting specific applications to promote solar energy deployment.
• Prioritizes Analytics & Advocacy, Capacity Building, and Programmatic Support.
• Promotes solar energy across sectors like agriculture, health, transport, and power generation.
• Develops innovative business models for solar projects.
• Supports governments in creating solar-friendly legislation.
• Pools demand for solar technology to lower costs.
• Enhances access to finance by mitigating risks and making the sector more appealing to private investors.

2. Cabinet approves PM-Vidyalaxmi scheme to provide financial support to meritorious students:

PM Vidyalaxmi: A Central Sector Scheme for Meritorious Students

• PM Vidyalaxmi, a Central Sector scheme, is approved by the Union Cabinet, chaired by Prime Minister Shri Narendra Modi.
• The scheme aims to provide financial support to meritorious students, ensuring they can pursue higher studies.
• The scheme is a key initiative from the National Education Policy, 2020, which recommends financial assistance for meritorious students in both public and private Higher Education Institutions (HEIs).
• Students admitted to quality Higher Education Institutions (QHEIs) can get a collateral-free, guarantor-free loan to cover tuition fees and related expenses.
• The scheme will be administered through a transparent, student-friendly, and inter-operable system.
• The scheme is applicable to top quality higher educational institutions, as determined by the National Education Rankings (NIRF).
• Students with an annual family income of up to ₹ 8 lakhs and not eligible for benefits under any other government scholarship or interest subvention schemes will receive a 3% interest subvention for loans up to ₹ 10 lakhs during the moratorium period.
• The Department of Higher Education will have a unified portal for applying for education loans and interest subventions.
• PM Vidyalaxmi will supplement the Central Sector Interest Subsidy (CSIS) and Credit Guarantee Fund Scheme for Education Loans (CGFSEL), two component schemes of PM-USP.

Defence

1. INAUGURATION OF C-295 FULL MOTION SIMULATOR AT AIR FORCE STATION AGRA:

IAF C-295 Full Motion Simulator inaugurated by Air Marshal Ashutosh Dixit

• The facility saves pilots valuable flying hours by allowing training in realistic environments.
• Simulators simulate tactical airlift, para-dropping, para-trooping, medical evacuation, and disaster relief.
• Simulations also simulate critical situations in actual operations, enhancing pilots’ combat readiness.
• The induction of C-295 aircraft into IAF boosts India’s aerospace ecosystem and marks the start of “Atmanirbhar Bharat” in private sector transport aircraft production.

Economy

1. Retail inflation surges to 14-month high of 6.21% in October:

Retail Inflation in India

• Retail inflation reached a 14-month high of 6.21 per cent in October due to a sharp rise in vegetable prices.
• Year-on-year inflation rate based on the All-India Consumer Food Price Index (CFPI) was 10.87 per cent in October, down from 9.24 per cent in September.
• Industrial growth improved to 3.1% in September, with growth rates in Mining, Manufacturing, and Electricity sectors at 0.2%, 3.9%, and 0.5% respectively.

Understanding Inflation

• Inflation is a general increase in goods and services prices over time.
• Causes include monetary policy, supply shocks, and government policy.
• Inflation can affect all sectors of the economy, including workers, businesses, fixed income individuals, lenders, and borrowers.
• Measured using a consumer price index (CPI).
• Economists favor a low and steady rate of inflation, typically in the range of two percentage points.
• Overcoming wage growth can indicate a struggling economy.

2. COP29 Climate Summit Day 2 Highlights: UN Chief calls 2024 a ‘masterclass in climate destruction’:

COP29 World Climate Action Summit Highlights

• Countries approved carbon credit quality standards for a U.N.-backed global carbon market.
• The agreement could operationalize the market by next year, enabling carbon credit purchase for climate initiatives.
• Concerns raised about the standards’ adequacy, particularly regarding human rights protections.
• Criticism arose regarding the decision-making process, with some nations feeling excluded.
• Negotiators aim to establish further rules to ensure market integrity.
• The market could potentially yield $250 billion annually and significantly reduce carbon emissions by 2030.

3. RBI, Sebi unveil rules for converting excess investment by FPIs into FDI:

Foreign Direct Investment (FDI) Regulations in India

• Government approval is required for any additional investment beyond the prescribed limit.
• Foreign Private Investors (FPIs) must state their intent to reclassify the investment as FDI.
• The operational framework allows increased investment by FPIs in Indian companies beyond the 10% limit.
• The facility to reclassify from FPI investment to FDI is restricted in certain prohibited sectors.
• The RBI and Sebi have shared procedures for reporting breaches and reclassification by FPIs and custodians.
• The new framework is viewed as a “welcome move” that fosters a conducive environment for foreign investment.

4. SBI looks to raise Rs 10,000 crore through 15-year infra bonds next week:

State Bank of India (SBI) Plans to Raise Rs 10,000 Cr through 15-Year Infrastructure Bonds

• SBI, India’s largest lender, plans to raise Rs 10,000 crore through 15-year infrastructure bonds as early as next week.
• Market participants anticipate a coupon in the range of 7.15 per cent to 7.18 per cent for the upcoming bond issuance.
• The issue is expected to see strong demand due to strong demand for longer-tenor papers in recent domestic capital market offerings.
• Infrastructure bonds are advantageous for banks as they are exempt from regulatory reserve requirements such as the Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR).
• SBI has previously raised Rs 20,000 crore in infrastructure bonds in the current financial year (FY25).
• SBI’s central board has approved the raising of long-term bonds up to an amount of Rs 20,000 crore through a public issue or private placement during FY25.

Agri Business

1. Maize research body seeks funding to undertake research on managing aflatoxin in DDGS:

ICAR’s Maize Research Institute Suggests Atoxin Level Reduction

• Addresses concerns over aflatoxin levels in DDGS.
• Suggests possible reduction to 20 PPM limit using technologies and post-harvest practices.

2. Excess rains spurs use of more herbicides this kharif cropping season:

• Indian Herbicide Sales Rise Despite Muted Offtake in Insecticides and Fungicides
• Excess rains during July-September led to a rise in herbicide sales in India, despite a decrease in insecticides and fungicides.
• Ashish Dobhal, CEO of UPL SAS, noted that herbicide sales were strong due to continuous rains.
• Agritech firm BigHaat also saw significant demand and growth in herbicides due to the excess rains.
• The shift from manual to chemical-based weeding methods due to rising labor costs has led to increased demand for pre and post emergent herbicides like Atrazine, Paraquat, Glyphosate, and Glufosinate ammonium 13.5.
• The herbicide market in India is entering a promising phase, with an anticipated growth of 3.82 per cent CAGR from 2024 to 2028.

Banking and Finance

1. ADB Issues its First Biodiversity and Nature Bond:

• Asian Development Bank (ADB) Issues First Biodiversity and Nature Theme Bond
• ADB has issued its first biodiversity and nature theme bond, financed by a pool of eligible projects across Asia and the Pacific.
• The 10-year issue, valued at A$150 million, was purchased by Dai-ichi Life Insurance Company, Limited of Japan and arranged by Credit Agricole CIB.
• The bond was issued under ADB’s Theme Bonds for Sustainable Development program, in coordination with its Environment group.
• The bond aims to mobilize private sector capital to combat climate change, biodiversity loss, and pollution.
• ADB’s theme bonds support the United Nations Sustainable Development Goals and the Kunming-Montreal Global Biodiversity Framework.
• The new ADB’s Biodiversity and Nature Bond was announced at the 16th Conference of the Parties of the Convention on Biological Diversity in Cali, Colombia.
• ADB is set to launch its Environment Action Plan 2024–2030: Towards a Nature Positive Asia and the Pacific, aiming to tackle climate change, biodiversity loss, and pollution.

2. RBI releases 43rd half-yearly report on MFER:

“Reserve Bank of India’s 43rd Half-Year Report on Foreign Exchange Reserves”

• Out of total 688.27 billion US dollars, 598.24 is foreign currency assets (FCA), 67.44 is gold, 18.27 is Special drawing Rights (SDRs), and 4.32 is reserve ‘Tranche Position (RTP).
• The report aims to increase transparency and disclosure in managing India’s foreign exchange reserves.