UPSC Key: Genome Edited (GE) Rice, Karakoram Anomaly and Goldilocks Situation

ICAR marks a first, develops two genome-edited varieties of rice

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies III: Awareness in the fields of IT, Space, Computers, robotics, nano-technology, bio-technology and issues relating to intellectual property rights.

What’s the ongoing story: The Indian Council of Agricultural Research (ICAR) said it has developed the world’s first genome edited (GE) rice varieties with superior yields, drought and salinity tolerance, and high nitrogen-use efficiency traits.

Key Points to Ponder:

• What is genome edited (GE) rice?

• The Indian Council of Agricultural Research (ICAR) said it has developed the world’s first genome edited (GE) rice varieties—What you know about the same?

• The world’s first genome edited (GE) rice varieties—what are their characteristics?

• What is CRISPR-Cas SDN-1?

• Which are these two genome-edited varieties of rice?

• What specific practical benefits will derive from cultivating these two new varieties?

• Are these varieties safe, and have they received all clearances required for cultivation?

• Why is this breakthrough in paddy so significant?

Key Takeaways:

• Two of its affiliate institutions — the Hyderabad-based Indian Institute of Rice Research (IIRR) and the Indian Agricultural Research Institute (IARI) at New Delhi — have bred improved GE mutants of the popular Samba Mahsuri (BPT-5204) and Cottondora Sannalu (MTU-1010) varieties using CRISPR-Cas SDN-1 (Site-Directed Nucleases-1) technologies?

• These have been named ‘Kamala’ and ‘Pusa DST Rice 1’. They have better stress tolerance, improved yields, and climate adaptability without any compromises with their existing strengths.
DRR DHAN 100 (KAMALA): Developed by the ICAR-Indian Institute of Rice Research (ICAR-IIRR), Hyderabad, this variety promises significantly higher yields, improved drought tolerance, and early maturity compared to its parent variety, Samba Mahsuri (BPT 5204).

• According to the ICAR, DRR Dhan 100 (Kamala) has been developed using genome editing technology targeting the Cytokinin Oxidase 2 (CKX2) gene (also known as Gn1a), to increase grain numbers per panicle.

• The ICAR release pointed out that DRR Dhan 100 (Kamala) retains the grain and cooking quality that makes Samba Mahsuri a consumer favourite.

• PUSA DST RICE 1: This new genome-edited variety has been developed over the widely cultivated fine-grain variety called MTU1010 by ICAR-Indian Agricultural Research Institute (ICAR-IARI), New Delhi.

• Developed through Site Directed Nuclease 1 (SDN1) genome-editing, the new variety, Pusa DST Rice 1, targets the Drought and Salt Tolerance (DST) gene to improve the plant’s resilience to harsh soil and climate conditions.

Do You Know:

• GE is different from genetic modification or GM. The latter involves introduction of genes from unrelated species into host plants. These could, for example, be genes from Bacillus thuringiensis, a soil bacterium, that code for the production of proteins toxic to various insect pests in cotton.

• GE, on the other hand, entails mere “editing” of genes naturally present in the host plant, leading to mutation or changes in their DNA sequence. No foreign genes or DNA are incorporated.

• CRISPR-Cas uses ‘Cas’ enzymes, or proteins that act like molecular “scissors”, to cut and modify the DNA sequence of a native gene at its targeted location. Such editing is intended to bring forth desirable alterations in that gene’s expression and function.

• In this case, scientists at IIRR have used the CRISPR-Cas12 protein for editing the ‘cytokinin oxidase 2’ gene (also called Gn1a) in Samba Mahsuri rice, in order to the increase the number of grains produced from each panicle (plant ear head) of this variety.

• The Gn1a gene basically codes for an enzyme that regulates the number of grains per panicle, thereby indirectly influencing yields. Through “editing”, the scientists are able to reduce the expression of that gene, leading to an increase in the number of grains per plant.

• The new GE line – called IET-32072 or ‘Kamala’ – is claimed to have recorded an average paddy (rice with husk) yield of 5.37 tonnes per hectare with a potential of 9 tonnes. This is higher than the corresponding average and potential yields of 4.5 tonnes and 6.5 tonnes/hectare from its parent Samba Mahsuri (BPT-5204) variety.

Other Important Articles Covering the same topic:

📍For the first time, 2 new genome-edited rice varieties: Why is this such a major breakthrough for ICAR and India’s agriculture?

Previous year UPSC Prelims Question Covering similar theme:
1. What is Cas9 protein that is often mentioned in news? (2019)
(a) A molecular scissors used in targeted gene editing
(b) A biosensor used in the accurate detection of pathogens in patients
(c) A gene that makes plants pest-resistant
(d) A herbicidal substance synthesized in genetically modified crops

Previous year UPSC Prelims Question Covering similar theme:
📍What are the research and developmental achievements in applied biotechnology? How will these achievements help to uplift the poorer sections of society? (2021)

Indus Waters Treaty needs relook with new data: Top glaciologist

Syllabus:

Preliminary Examination: Current events of national and international importance

Main Examination: General Studies I: Salient features of world’s physical geography

What’s the ongoing story: In the face of climate change-induced retreat of glaciers feeding eastern rivers of the Indus river basin, and projections of reduced water availability, the Indus Water Treaty (IWT) needs to be reviewed with the help of new data, leading glaciologist Anil V Kulkarni told The Indian Express.

Key Points to Ponder:

• What glaciologist Anil V Kulkarni said?

• Why the Indus Water Treaty (IWT) needs to be reviewed with the help of new data?

• “Glaciers feeding the Ravi, Sutlej and Beas rivers, located at a lower altitude, are retreating at a faster rate in comparison to the glaciers in Pakistan, located at high altitudes in the Karakoram range”—Discuss

• In the scientific community, what is is called the Karakoram anomaly?

• Scientific studies have attributed Karakoram anomaly to myriad factors—What are those?

• “The western river basins (part of the Indus basin) has a much higher glacier-stored water, and glaciers have not started melting significantly, as compared to the eastern river basins”—How this will impact India?

• What studies have been done to map flows and water availability?

• How can India use eastern rivers differently, for instance flushing of waters from reservoirs?

Key Takeaways:

• Following the terror attack in south Kashmir’s Pahalgam that killed 26 people, India has put the 65-year-old water-sharing treaty with Pakistan in abeyance, invoking cross-border terrorism.

• Kulkarni said studies carried out by him and his colleagues have shown that the glaciers feeding the Ravi, Sutlej and Beas rivers, located at a lower altitude, are retreating at a faster rate in comparison to the glaciers in Pakistan, located at high altitudes in the Karakoram range.

• As a result, the amount of glacial meltwater is projected to be much higher than the previous decades till the middle of the century, which would be followed by a significant reduction in water availability, he said.

• Scientific studies have attributed this anomaly to myriad factors such as cooler summer temperatures, more snowfall during winters, and more mass of rock and debris, which insulate the glaciers.

• Kulkarni pointed out that the glacier-stored water — the water held by a mass of glaciers — is not uniform across India and Pakistan. He said the impact of global warming on these glaciers will also not be uniform. The glaciers located in Pakistan have a greater store of water compared to glaciers in India, he said.

Do You Know:

• Under the IWT, signed in September 1960, all waters of the Indus basin’s eastern rivers — Satluj, Beas and Ravi — are available to India for unrestricted use. Pakistan has rights over the western rivers — Indus, Jhelum and Chenab — and being upstream of its neighbour, it can only use waters of these rivers for non-consumptive use, such as to produce hydropower, navigation, flood protection and control, and fishing.

• The treaty divided the waters of six rivers – Ravi, Beas, Sutlej, Jhelum, Indus and Chenab – flowing from the Indus river basin, between India and Pakistan. The Indian government’s move has raised speculations on the strategic steps it could take to utilize water not apportioned to it under the treaty.

• While those decisions take shape, the issue has also brought into focus the vulnerabilities faced by the Indus river basin, which is facing loss of glaciers due to climate change.

Other Important Articles Covering the same topic:

📍IWT suspension revives hopes for completion of stalled J&K lake project

THE EDITORIAL PAGE

What made US science great

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.

What’s the ongoing story: Hemant Kanakia and Sonalde Desai Writes: As India seeks to enhance its innovation ecosystem, it is worthwhile to pay attention to opportunities and lessons from the self-inflicted wounds on American science.

Key Points to Ponder:

• What is the importance of strong scientific institutions in shaping national progress?

• What lessons can India draw from the US experience in this regard?

• How does political interference affect scientific inquiry and technological advancement?

• “Science thrives in an ecosystem of autonomy, transparency, and public trust.” Discuss

• What is the role of federal funding in the development of science and technology in liberal democracies?

• Know the long-term risks of undermining institutions like NSF, NIH, and NASA in a country’s pursuit of global leadership.

• In what ways can countries like India ensure that science remains independent and evidence-based despite political and ideological pressures?

Key Takeaways:
Hemant Kanakia and Sonalde Desai Writes:

• What do lasers, the internet, Google’s search algorithm, the gene-editing tool CRISPR-9, Wireless MIMO (multiple-input multiple-output) technology, and Covid vaccines have in common? Key innovations underlying each originated in an American university, where government grants funded initial research and were later adapted for industrial research and development.

• Many great American multinational companies have emerged from these foundational research breakthroughs. However, if President Donald Trump has his way, America’s golden age of creativity would soon be a distant memory.
• While the world is focused on the economic disruption caused by Trump’s tariffs, his short-sightedness in killing the golden goose that made the American economy soar will have longer-lasting effects. Nevertheless, there are lessons for other countries, particularly India, as the American innovation system begins to unravel.

• The American innovation-industrial complex relies on three pillars: Stable support for research infrastructure within universities and non-profit institutions funded by the government, while allowing them to operate independently; an open and competitive ideas marketplace; and tapping into global talent. All three are currently under threat.

• The Trump administration views universities as free riders exploiting government largesse by collecting 30 cents in overhead for each dollar going directly to support research.

Do You Know:
Hemant Kanakia and Sonalde Desai Writes:

• Beginning with a flight of Jewish scientists from Germany, American science has benefited tremendously from the influx of international scholars. Of the 314 laureates who won their Nobel Prize while working in the USA, 102 (or 30 per cent) were foreign-born. Compare that to Japan, which counts no foreign-born individuals among its nine Nobel laureates.

• The anti-immigrant sentiment fuelled by the current administration will make America a less attractive place for international students and researchers. The administration claims not to be against international students, but they are welcome only if they hold no political views. This is reminiscent of Great Britain, which until 1829 was more than willing to extend democratic privileges to Irishmen as long as they did not profess Catholic beliefs.

• Ironically, attempts to make America great again seem to think that destroying the institutions that made American science great is the best place to begin.

• There is a lesson and an opportunity for nations that seek to compete with America by enhancing their scientific infrastructure. The lesson lies in heightened appreciation of what made the American innovation economy function — institutional structures that provide support without stifling creativity and innovation, not using political ideologies to guide funding or regulations. Opportunity lies in a vacuum that is likely to be created and spaces that can be filled by less dogmatic nations in fields like climate science and vaccine technologies.

• As India seeks to enhance its innovation ecosystem, it is worthwhile to pay attention to opportunities and lessons from the self-inflicted wounds on American science.

Other Important Articles Covering the same topic:

📍Trump vs Harvard is not just about Harvard

A GOLDILOCKS MOMENT

Syllabus:

Preliminary Examination: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

Mains Examination: 

• General Studies III: Inclusive growth and issues arising from it.

• General Studies III: Major crops-cropping patterns in various parts of the country

What’s the ongoing story: Instead of trying to cool open market prices through offloading of its stocks, the Narendra Modi government conserved its stocks and let prices rise. The stratagem has seemingly paid off

Key Points to Ponder:

• What is meant by a “Goldilocks moment” in the context of agricultural supply?

• What is Goldilocks situation in the case with wheat?

• Wheat Production in India-Rabi or Kharif Crop?

• Wheat Production in India-Know all the facts like Highest producing States, Geography and Environment associated with Wheat Production like Soil, temperature, Rainfall and Humidity etc.

• Kharif and Rabi Crops-Compare and Contrast

• Rabi crops, MSP and Doubling Farmers Income-How they are interconnected?

• Recommendation of Ashok Dalwai Committee and M. S. Swaminathan Committee-Key Highlights

• The Commission for Agricultural Costs & Prices (CACP)-Know in Detail

• The Commission for Agricultural Costs & Prices (CACP) and Minimum support prices (MSP)-Connect the dots

• How Government fix MSPs of crops before every planting season?

Key Takeaways:

• When farmers harvest a good crop for which they get remunerative rates, there is ample grain to meet the requirements of private millers and traders, and the government also procures enough to replenish its depleted stocks, it translates into a Goldilocks situation.

• Last year, on April 1, stocks of the grain in government warehouses, at 7.5 million tonnes (mt), were the lowest for this date since
2008. With neither the government nor the trade having much wheat, wholesale prices in Delhi crossed Rs 3,200 per quintal this January, as against Rs 2,500 a year ago.

• During 2023-24 (April-March), open market sales of wheat from public stocks topped 10 mt. In 2024-25, such sales totaled just over 4 mt. Instead of trying to cool open-market prices through offloading of its stocks, the Narendra Modi government did otherwise. It conserved its stocks and let prices rise.

• That stratagem has seemingly paid off. While opening public wheat stocks this April have been higher at 11.8 mt, the new crop has also turned out quite bumper. Government agencies are set to procure 30 mt-plus of wheat in the current marketing season (April-June), the highest in four years.

• In most mandis of major growing states, wheat is trading at just around the government’s minimum support price of Rs 2,425. That’s a fair reward for farmers. They were enthused to plant more area under the crop by good prices (the MSP was itself hiked by Rs 150/quintal, with Rajasthan and Madhya Pradesh offering Rs 150-175 bonuses on top) as well as adequate soil moisture and irrigation water availability.

• The absence of any significant weather shocks impacting yields further helped this time. Simply put, the precarious domestic supply position in wheat, since the March 2022 temperature spike-singed crop of that year, has changed to Goldilocks’s “just right”.

Do You Know:

• According to the Investopedia, a Goldilocks economy is not too hot nor too cold but just right, to steal a line from the popular children’s story “Goldilocks and the Three Bears”. The term describes an ideal state for an economic system. There’s full employment, economic stability, and stable growth in this perfect state. The economy isn’t expanding or contracting by a large margin.
A Goldilocks economy is warm enough with steady economic growth to prevent a recession but growth isn’t so hot as to push it into an inflationary status.

• There’s some debate among economists as to the exact characteristics of a Goldilocks economy but it’s safe to say that there should be a balance between growth, employment, and inflation.

Other Important Articles Covering the same topic:

📍Goldilocks Economy: Definition and What Makes It Work

Previous year UPSC Prelims Question Covering similar theme:
2. Consider the following crops:
1. Cotton
2. Groundnut
3. Rice
4. Wheat
Which of these are Kharif crops?
(a) 1 and 3
(b) 2 and 3
(c) 1, 2 and 3
(d) 2, 3 and 4

THE STATES WANT MORE

Syllabus:

Preliminary Examination: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

Mains Examination: General Studies II: Appointment to various Constitutional posts, powers, functions and responsibilities of various Constitutional Bodies.

What’s the ongoing story: What will a rebalancing of tied and untied transfers do for the equitable and comparable delivery of public services across the country? Considering the level of inequality, will increasing untied funds lead to a convergence? The finance commission should look into these, and more, as it finalises its recommendations

Key Points to Ponder:

• What is the Finance Commission?

• What are the functions of the Finance Commission?

• Who appoints the Finance Commission and what are the qualifications for Members?

• Article 280 of the Constitution says what?

• How are the recommendations of Finance Commission implemented?

• Sixteenth Finance Commission-What you know about this?

• What do you understand by both vertical and horizontal sharing?

• What changes should the 16th Finance Commission implement?

Key Takeaways:
Ishan Bakshi Writes:

• In their suggestions to the 16th Finance Commission (FC), several states have argued in favour of increasing their share in the divisible tax pool. Some have even called for raising the states’ share all the way up to 50 per cent from the current 41 per cent.

• States do have a right to feel aggrieved. After all, even as the 14th FC increased their share in the tax pool to 42 per cent, and the 15th FC keeps it at 41 per cent (reducing it by 1 per cent with J&K becoming a Union territory), the central government reduced the divisible tax pool itself. It did so by imposing cesses and surcharges, revenue from which is not shared with the states.

• By 2021-22, the divisible tax pool had shrunk to 78.9 per cent of the Centre’s gross tax revenues, from 88.6 per cent in 2011-12, as per the RBI. Thus, states have, on average, received only 32 per cent of gross tax revenues over the past six years.

• One, considering the demands on the Centre’s budget, it will be fiscally challenging for it if overall transfers to states are increased further. States already spend around 60 per cent of general government expenditure. Thus, the states’ demand for greater fiscal autonomy could be met by increasing the share of untied transfers. This would mean that within the current level of transfers from the Centre, the composition of tied and untied funds needs to be reworked, which would require rationalising centrally-sponsored schemes. This, however, is tricky terrain.

• Driven by political considerations and/or the imperatives of economic development, successive Union governments have, through centrally-sponsored schemes, increased spending on items that fall in the state and concurrent lists.

• The last few years have also witnessed a flurry of cash-transfer schemes. As per a report from Axis Bank, 14 states have announced income transfer schemes, adding up to 0.6 per cent of the GDP.

Do You Know:

• The Sixteenth Finance Commission will cover the five-year period beginning 2026-27, the report for which is expected to be taken up by the government at the time of presentation of Budget 2026-27.

• The Finance Commission is constituted by the President under article 280 of the Constitution, mainly to give its recommendations on distribution of tax revenues between the Union and the States and amongst the states themselves. The Commission’s work involves redressing the vertical imbalances between the taxation powers and expenditure responsibilities of the Centre and the States respectively and equalisation of all public services across the states.

• The 15th Finance Commission, chaired by NK Singh, had submitted two reports. The first report, consisting of recommendations for the financial year 2020-21, was tabled in Parliament in February 2020. The final report with recommendations for the 2021-26 period was tabled in Parliament on February 1, 2021. The share of states in the central taxes for the 2021-26 period was recommended to be 41 per cent same as that for 2020-21. This was less than the 42 per cent share recommended by the 14th Finance Commission for 2015-20 period, with the 1 per cent adjusted to factor in the new union territories of Jammu and Kashmir, and Ladakh.

Other Important Articles Covering the same topic:

📍Three full-time, one part-time members of 16th FC appointed

Previous year UPSC Prelims Question Covering similar theme:
3. Consider the following: (2023)
1. Demographic performance
2. Forest and ecology
3. Governance reforms
4. Stable government
5. Tax and fiscal efforts
For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?
(a) Only two
(b) Only three
(c) Only four
(d) All five

ECONOMY

‘India considers tax breaks for Saudi Arabia’s sovereign wealth fund PIF’

Syllabus:

Preliminary Examination: Economic and Social Development

Main Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

What’s the ongoing story: India may offer a 10-year tax holiday and streamlined exemptions to Saudi Arabia’s Public Investment Fund (PIF) to boost $100 billion investments in infrastructure and energy. Proposals include benefits under Sections 10(23FE) and 80IA of the Income Tax Act for easier fund inflows.

Key Points to Ponder:

• What is PFI in Saudi Arabia?

• Sovereign Wealth Funds (SWFs) are primarily funded by whom?

• Which sectors in India has attracted investment from Saudi Arabia’s PIF in recent years?

• As per Indian tax law, Section 10(23FE) of the Income Tax Act provides exemption to whom?

• What are Sovereign Wealth Funds (SWFs)? Discuss their growing role in India’s infrastructure and strategic sectors with recent examples.

• Examine the implications of offering tax exemptions to foreign state-owned funds in terms of transparency, tax justice, and competitive neutrality.

• How India’s tax policy toward sovereign wealth funds like the Public Investment Fund (PIF) can influence its geopolitical and economic relations in the Gulf region?

Key Takeaways:

• The Centre is considering tax reliefs for Saudi Arabia‘s sovereign wealth fund, as a means to facilitate the proposed $100 billion investments by the West Asian Kingdom in the country’s infrastructure and energy sectors.

• According to official sources, the proposals under consideration include a tax holiday of up to 10 years for Saudi Public Investment Fund (PIF) and further streamlining of procedures to make it easier for it to claim tax exemption on dividend, interest, and long-term capital gains (LTCG) on investments in infra-assets.

• PIF may be given a treatment similar to Abu Dhabi Investment Authority (ADIA), which gets specific tax benefits under the Income Tax Act.

• During Prime Minister Narendra Modi’s recent visit to Riyadh, talks were held on the Gulf country’s investment plans for India, as it steps up investments across the world, and diversifies into sectors other than petroleum.

• PIF, one of the largest sovereign wealth funds in the world, presides over assets worth $925 billion. Despite being such a big source of long-term patient capital, its exposure to India is currently limited to a few ventures, including $1.5 billion in Jio Platforms and $1.3 billion in Reliance Retail Ventures Ltd.

• A High-Level Task Force (HLTF) was constituted in 2024 for promoting investment flows between the two countries. Saudi Arabia has shown interest in investing in India in multiple areas, including energy, petrochemicals, infrastructure, technology, fintech, digital infrastructure, telecommunications, pharmaceuticals, manufacturing and health.

Do You Know:

• Section 10(23FE) exempts SWFs and global pension funds from taxes arising on interest, dividends, and LTCGs related to infrastructure investments made in India during specified periods. ADIA and its wholly owned subsidiaries are specifically mentioned in the Act for the exemption. While PIF is also eligible under this section to get tax benefits like other SWFs, it wants a treatment similar to ADIA. So, PIF may be included under Section 10 (23FE) itself, which will cut down procedures for it to get tax exemption.

• The Public Investment Fund (PIF) of Saudi Arabia was established in 1971 and is that nation’s sovereign wealth fund. It provides financing for productive commercial projects that are strategically significant to the development of the Saudi Arabian economy. The fund complements private sector efforts with additional experience and capital resources.

Other Important Articles Covering the same topic:

📍Public Investment Fund of Saudi Arabia: Definition and How Much

Bhushan Power: Why did SC reject JSW takeover bid, order liquidation?

Syllabus:

Preliminary Examination: Economic and Social Development

Main Examination: General Studies II: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

What’s the ongoing story: The Supreme Court on Friday rejected steel major JSW Steel Ltd’s Rs 19,350 crore bid to acquire Bhushan Power and Steel Ltd (BPSL) through the Corporate Insolvency Resolution Process (CIRP) route, and ordered the liquidation of the company.

Key Points to Ponder:

• What do you mean by liquidation?

• What is the difference between liquidation and insolvency?

• Which acts governs the corporate insolvency resolution process in India?

• Who is the adjudicating authority under the IBC for corporate insolvency cases?

• National Company Law Tribunal (NCLT)—Know power and functions

• What was the main reason cited by the Supreme Court in rejecting JSW Steel’s bid for Bhushan Power and Steel?

• What is the role and limitations of Section 32A of the IBC in protecting resolution applicants in cases involving fraud or criminal investigations?

Key Takeaways:

• While ordering the liquidation, the biggest in the corporate history, a bench of Justice Bela Trivedi and Justice Satish Chandra Sharma lambasted the delay on the part of JSW Steel to implement the resolution plan and said the Committee of Creditors (CoC) failed to exercise its commercial wisdom while approving the Resolution Plan.

• JSW Steel, controlled by Sajjan Jindal, and lenders are likely to go for appeal against the SC order as both the parties will suffer a setback if liquidation of BPSL is implemented.

• The liquidation of BPSL is set to be the biggest in the history of the corporate sector in terms of the size of the debt. Supreme Court of India earlier ordered the liquidation of Jet Airways, a once prominent Indian airline, due to the failure of a resolution plan and the inability of the Jalan-Kalrock Consortium (JKC) to fulfil its financial obligations.

• While Jet Airways was estimated to have owed its financial creditor around Rs 7,800 crore, a total of around Rs 15,723 crore was admitted as claims by the National Company Law Tribunal when the airline was first grounded in 2019.

• The number of cases ending in liquidation in FY24 was 2,476 involving total claims of Rs 11 lakh crore, according to Insolvency and Bankruptcy Board of India (IBBI). However, the liquidation value is just Rs 69,634 crore, just 6.33 per cent of admitted claims.

• SC said JSW even after the approval of its plan by the NCLAT, wilfully contravened and not complied with the terms of the said approved Resolution Plan for a period of about two years, which had frustrated the very object and purpose of the IBC, and consequently had vitiated the CIR proceedings of the corporate debtor-BPSL.

Do You Know:

• Liquidation means end of the road for BPSL. When BPSL is liquidated, its assets are sold to settle debts, often at distressed prices, leaving less money for banks. This could result in significant losses for lenders, who have already taken a huge haircut. The unwinding of this transaction is expected to have far-reaching consequences for the banking sector and IBC cases.

• Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due. As company operations end, the remaining assets are used to pay creditors and shareholders, based on the priority of their claims. General partners are subject to liquidation.

• Insolvency refers to a business that can no longer pay its debts. A company might be unable to repay creditors if it’s struggling financially. The company might have had a significant drop in income due to lost sales, increased expenses due to the cost of goods or labor, or the business might be suffering from poor decisions.

Other Important Articles Covering the same topic:

📍What Is Liquidation?

Previous year UPSC Prelims Question Covering similar theme:
4. Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news? (2017)
(a) It is a procedure for considering ecological costs of developmental schemes formulated by the Government.
(b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.
(c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.
(d) It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented by the Government.

EXPLAINED

Fuel vs feed debate in maize

Syllabus:

Preliminary Examination: General issues on Environmental ecology, Bio-diversity and Climate Change – that do not require subject specialisation.

Mains Examination: General Studies III: Conservation, environmental pollution and degradation, environmental impact assessment.

What’s the ongoing story: Diversion of maize for biofuel has turned India from a surplus producer and exporter to an importer of the feed grain. There is pressure now to even allow imports of genetically modified maize for ethanol production

Key Points to Ponder:

• What is Ethanol?

• What is Ethanol Blending?

• What is the Significance of Ethanol Blending?

• National Policy on Biofuel 2018-Know the key Features

• What is the current blending status?

• Which crops is most commonly used in India for ethanol production under the Ethanol Blending Programme (EBP)?

• Which states is a major maize-producing region in India?

• The use of maize for ethanol production has raised significant concerns regarding food and feed security—Why?

• How sustainable is the maize-based ethanol production in India?

• Maize is a staple in poultry and cattle feed industries. How could diversion toward ethanol impact rural livelihoods dependent on animal husbandry?

Key Takeaways:

• After ethanol is produced from maize and separated through distillation, the wet fermented grain mash that remains is further dried. It results in what is called DDGS – distiller’s dried grains with solubles. This residual by-product is a protein-rich material that has emerged as an alternative livestock feed ingredient.

• Distilleries are currently selling DDGS from maize at around Rs 16,000-17,000 and that from rice at Rs 18,000-19,000 per tonne. This is as against ex-factory prices of Rs 31,000-32,000 per tonne for soyabean DOC, which has 45% protein.
The DDGS quantities being produced by distilleries isn’t small. At 33% of grain weight, the DDGS from 12.7 mt of maize comes to 4.2 mt. The DDGS content is lower, at 25%, from rice. But even on the 4 mt of rice required for supplying the contracted 174.4 crore litres of ethanol from this source in 2024-25, the corresponding DDGS produce (at 430-440 litres per tonne of grain) would be 1 mt.

• DDGS from maize has 28-30% protein content. It’s even higher, at 45%, for DDGS that is a byproduct of ethanol made from rice grains. The protein source that livestock feed manufacturers normally use is the residual de-oiled cake (DOC) after extraction of oil from soyabean, mustard, cottonseed, groundnut or rice bran. But these are costlier than DDGS.

• All-India average prices of maize have surged from Rs 14,000-15,000 to Rs 24,000-25,000 per tonne in the last four years largely attributable to the ethanol-blended petrol programme.

• India now allows up to 0.5 mt of maize imports annually at 15%, with quantities beyond that attracting 50% duty. Also, it does not permit imports of genetically modified (GM) maize. Out of the 0.94 mt imported during April-January 2024-25, 0.51 mt was from Myanmar and 0.39 mt from Ukraine, which do not grow GM maize.

• Opening up imports of GM maize will benefit the world’s top three exporters: United States, Brazil and Argentina. They mainly cultivate GM maize. The US, in particular, is looking for new markets after China – until recently the largest buyer of its maize and soyabean, which is also GM – has practically stopped imports from the country.

Do You Know:

• Till 2021-22, India’s maize output, at 32-33 million tonnes (mt), exceeded domestic demand of around 28 mt. It even left a surplus for exports, which touched 3.7 mt in 2021-22.

• Out of the 28 mt demand, roughly 20 mt was from the livestock feed industry. That included 15 mt for poultry (both broiler chicken and egg layer birds) and 5 mt for cattle feed. Another 5 mt was for industrial starch production, 2 mt for direct human consumption, and 1 mt for seed and other uses.

• The situation changed with maize also becoming a feedstock for making ethanol, a 99.9% pure alcohol that can be blended with petrol. Maize grains contain 68-72% starch and 1-3% of other carbohydrates (sucrose, glucose and fructose).

• While carbohydrates are the principal energy source for livestock, they can be fermented into ethanol, too, using yeast. One tonne of maize gives some 380 litres of ethanol; the process involves milling the grains into flour, breaking down the starch into shorter carbohydrate chains and fermentable sugars, fermentation (to 15% pure alcohol), distillation (to 94% spirit) and dehydration (to 99.9% fuel ethanol).

Other Important Articles Covering the same topic:

📍Ethanol blend target reached; nation, environment gain: PM

Previous year UPSC Prelims Question Covering similar theme:
5. Given below are the names of four energy crops. Which one of them can be cultivated for ethanol? (2010)
(a) Jatropha
(b) Maize
(c) Pongamia
(d) Sunflower

6. According to India’s National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels? (2020)
1. Cassava
2. Damaged wheat grains
3. Groundnut seeds
4. Horse gram
5. Rotten potatoes
6. Sugar beet
Select the correct answer using the code given below:
(a) 1, 2, 5 and 6 only
(b) 1, 3, 4 and 6 only
(c) 2, 3, 4 and 5 only
(d) 1, 2, 3, 4, 5 and 6

Crisis at Kaleshwaram: why Telangana’s massive irrigation project is distressed

Syllabus:

Preliminary Examination: Economic and Social Development

Main Examination: General Studies III: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

What’s the ongoing story: India’s national safety regulator for large dams has found “irreparable damage” in the structure of three barrages that are part of the world’s biggest multi-stage lift irrigation project.

Key Points to Ponder:

• What is Kaleshwaram Lift Irrigation Project?

• What makes Kaleshwaram Lift Irrigation Project unique?

• The National Dam Safety Authority (NDSA) reported certain issues in the Medigadda Barrage—what are those?

• Environmental clearance of the Kaleshwaram Project—What you know about the same so far?

• What are the financial viability of the Kaleshwaram Project in light of the findings from the Comptroller and Auditor General (CAG) report?

• Know the environmental concerns associated with the Kaleshwaram Project.

Key Takeaways:

• The Kaleshwaram Lift Irrigation Project (KLIP) on the Godavari river in Telangana’s Jayashankar Bhupalpally district across the border from Maharashtra will supply water for irrigation, industrial, and domestic uses over a swath of northern Telangana.

• Work on KLIP began in June 2019. In February 2024, four months after an incident of flooding at the biggest of the project barrages, the state government asked the National Dam Safety Authority (NDSA), a statutory body set up under the National Dam Safety Act, 2021, for a thorough inspection.

• The Kaleshwaram project on the Godavari will be the world’s largest multi-stage lift irrigation project. Work began on June 21, 2019, under Telangana’s Bharat Rashtra Samithi (BRS) government.

• In lift irrigation projects, water does not rely on gravity to flow in canals from higher ground to lower; rather, water is lifted by means of pumps or surge pools to a main delivery chamber at the highest point in the project, from where it is distributed to beneficiary fields.

• The project sprawls over approximately 500 km in 13 districts, with a canal network of 1,800 km.

• According to the project master plan, of the 240 thousand million cubic feet (TMC) of water, 169 TMC, or more than 70%, is meant for irrigation. Thirty TMC is for the Hyderabad municipal area, 16 TMC for miscellaneous industrial uses, and 10 TMC is meant to provide drinking water to nearby villages.

• The vast bulk of this water — 195 TMC — will come from the Medigadda Barrage. Twenty TMC will come from the Sripada Yellampalli project, and another 25 TMC will be groundwater.

• On October 21, 2023, one of the pillars — No. 20 of block 7 — of the Medigadda Barrage sank, which led to flooding. An NDSA team
examined the sunken pillar on October 25, and held an appraisal meeting with L&T, the company executing the project.

Do You Know:

• According to the Telangana government, the NDSA has asked for “rehabilitation of the design”, and “a comprehensive assessment of health and safety of the entire barrage”. It has sought “immediate stabilisation measures to arrest the ongoing distress”, “comprehensive geotechnical studies and advanced geophysical assessments to establish a reliable baseline of the ground conditions and structures for future interventions”.

• Also, there should be “hydraulic design aided by appropriate hydraulic model studies and structural design through appropriate mathematical modelling software”.
In effect, the NDSA has recommended a full suite of actions from structural rehabilitation to strengthening of the barrages.

• The Kaleshwaram project, a brainchild of former Chief Minister K Chandrashekar Rao, was the “crown jewel” of the BRS government that ruled Telangana for almost 10 years after the state was carved out of Andhra Pradesh in 2014.

Other Important Articles Covering the same topic:

📍Explained: Why the NGT wants a relook at Kaleshwaram project

📍Explained: What is Telangana’s Kaleshwaram water project? 

 

PRELIMS ANSWER KEY

1.(a) 2.(c) 3.(b) 4.(b) 5.(b) 6.(a)

  

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