DAILY CURRENT AFFAIRS ANALYSIS
03rd November 2021
| S. No. | Topic Name | Prelims/Mains |
| 1. | About the ‘One Sun, One World, One Grid’ Initiative | Prelims & Mains |
| 2. | Revised PCA framework for banks issued by RBI | Prelims & Mains |
| 3. | About the Infrastructure for Resilient Island States | Prelims & Mains |
| 4. | About the Defence Acquisition Council (DAC) | Prelims & Mains |
| 5. | About the Anti-Terror Agency set-up in J & K | Prelims Specific |
- About the ‘One Sun, One World, One Grid’ Initiative:
GS III
Topic – Conservation related issues:
- About the program:
- The plan brings together the International Solar Alliance and the UK green grid system and is in line with India’s focus on solar energy use.
- The grid will be established in the next few years by the International Solar Alliance (ISA), another Indian-approved initiative, to carry forward solar power initiatives to various countries.
- The vision behind OSOWOG is ‘The Sun Does Not Rise’ and is always present, worldwide, at any time.
- Implementation:
- The Ministerial Steering Group will work to accelerate the construction of large solar power stations and wind farms in the best of locations, connected together by continental grids across national borders.
- The Ministerial Steering Group comprises France, India, the United Kingdom and the United States, and will consist of representatives from Africa, the Gulf, Latin America, and Southeast Asia.
- Benefits of the program:
- With one global grid, we can access clean energy in all areas.
- The need to conserve energy will decrease, and the efficiency of solar projects will increase.
- India will generate 40% of energy from non-fossil fuels by 2030 and has demanded that the solar power supply be linked to the borders that provide the mantra of ‘One World One Sun One Grid’.
- The proposed merger will result in a reduction in project costs, higher efficiency and increased asset utilization for all participating organizations.
- This plan will only require additional investment as it will not require compatible grid infrastructure due to working with existing grids.
- It will assist all stakeholders in attracting investment in renewable energy sources and the utilization of skills, technology and finance.
- The effects of economic benefits can have a positive impact on poverty alleviation and support in reducing water, sanitation, food and other socio-economic challenges.
- It will allow India’s national renewable energy management to grow as regional and international administrative institutions.
- Revised PCA framework for banks issued by RBI:
GS III
Topic – Economy related issues:
- Why in News:
- The RBI has released an updated Prompt Corrective Action (PCA) framework for banks to enable “timely” regulatory interventions and also serve as an effective market regulatory tool.
- About the updated framework:
- The revised PCA framework will come into effect from 1 January 2022.
- The indicators to be tracked will be the CRAR / Common Equity Tier I Ratio, Net NPA Ratio and Tier I Leverage Ratio, respectively.
- What is Prompt Corrective Action (PCA):
- The PCA is a framework in which banks with weak financial metrics are placed under the scrutiny of the RBI.
- The RBI introduced the PCA framework in 2002 as a systematic approach to early intervention for banks that lose money due to poor quality assets, or risk losing profits.
- It aims to address the problem of Non-Performing Assets (NPAs) in the Indian banking sector.
- The framework was revised in 2017 based on the recommendations of the working group of the Financial Institutions and Development Agency Financial Resolution Systems in India and the Financial Sector Law Reform Commission.
- PCA is used when certain risk limits are violated.
- There are three risk limits based on certain levels of asset quality, profitability, capitalization and the like.
- Prelims Hot-Link:
- About PCA.
- Parameters
- Source – https://www.thehindu.com/business/Economy/rbi-issues-revised-pca-framework-for-banks/article37312438.ece
- About the Infrastructure for Resilient Island States:
GS III
Topic – Disaster Management:
- Why in News:
- The program was launched by India to develop world class infrastructure on small islands at the risk of climate change.
- The new move is the result of a partnership between India, the U.K. and Australia and included the participation of minority leaders in islands such as Fiji, Jamaica and Mauritius.
- Implementation:
- The IRIS initiative is part of the Coalition for Disaster Resilient Infrastructure (CDRI) which will focus on skills development, and pilot projects, especially in small developing islands.
- Need for:
- The past few decades have proved that no one is immune to the effects of climate change.
- Whether developed countries or in lands rich in natural resources, this is a serious threat to everyone.
- However, the Small Island Developing Countries (SIDS) face a major threat to climate change.
- One-third of all SIDS nations’ inhabitants live in areas less than five meters below sea level.
- This puts them at greater risk for sea level rise, storm surges, and coastal erosion.
- These countries contribute to only 1 percent of global greenhouse gas emissions, and are still among the first to experience the devastating effects of climate change.
- About CDRI:
- Launched by Indian PM Narendra Modi in September 2019 at the UN Secretary-General’s Conference on Climate Change in New York, US.
- It is a platform where information is generated and traded in various aspects of disasters and climate resilience in infrastructure.
- It will create a mechanism to assist countries to develop their skills and practices, in terms of infrastructure development in line with risk and economic needs.
- To date, 25 other countries, including Germany, Italy, Japan, Australia, and the United States have joined the coalition.
- CDRI is India’s second international alliance in the field of climate change, with the other International Solar Alliance now transformed into a “convention-based” government agency.
- Small Island Developing Countries:
- The Small Island Developing States (SIDS) is a separate group of 38 UN Member States and 20 UN / UN Members of the United Nations regional commissions facing unique social, economic and environmental risks.
- SIDS was recognized as a separate group of developing countries in June 1992, at the UN Conference on Environment and Development.
- Source – https://economictimes.indiatimes.com/news/india/pm-modi-launches-infrastructure-for-resilient-island-states-for-most-vulnerable-countries/articleshow/87485589.cms
- About the Defence Acquisition Council (DAC):
Prelims Specific Topic:
- To combat corruption and speed up military decision-making, the Indian government in 2001 decided to establish an integrated DAC.
- It is leaded by the Minister of Defence.
- Purpose: The purpose of the DAC is to ensure the immediate procurement of mandated Military requirements, in accordance with the required skills, and for a limited period of time, through the full utilization of allocated budget resources.
- Functions: DAC is responsible for providing procurement policy guidelines, based on long-term procurement plans. It also cancels all purchases, including both imports and those produced locally or under an external license.
- About the Anti-Terror Agency set-up in J & K:
Prelims Specific Topic:
- The J&K government has established a new State Investigation Agency (SIA) for “rapid and effective investigation and prosecution of military-related crimes in the Union area”.
- The SIA will be an important liaison with the National Investigation Agency (NIA) and other Central Institutions.
- The head of this unit will be a former SIA Director.