‘PM Vidyalaxmi’ scheme

Context:

• Union Cabinet approves ‘PM Vidyalaxmi’ scheme for students to avail easy loans for higher education
• PM Vidyalaxmi scheme provides interest subvention for education loans up to ₹10 lakh

News:

• Union Cabinet has approved a new scheme PM Vidyalaxmi (Central Sector scheme) that provides financial support to meritorious students facing financial constraints that prevent them from pursuing quality higher education.
• PM Vidyalaxmi scheme approved for “empowering youth and middle class”.

More info:

• As per the scheme, anybody who gets admission in Quality Higher Education Institutions (QHEIs) will be eligible to get collateral free, guarantor-free loan from banks and financial institutions to cover the full amount of tuition fees and other expenses related to the course.
• Any student getting admission in quality higher educational institution, and having annual family income up to ₹8 lakh, will be eligible to get 3% interest subvention for education loans up to ₹10 lakh.
• The interest subvention support will be given to one lakh students every year.
• Preference will be given to students who are from government institutions and have opted for technical/ professional courses.
• For loan amount up to ₹ 7.5 lakhs, the student will also be eligible for a credit guarantee of 75% of outstanding default.
• This will give support to banks in making education loans available to students under the scheme.
• The scheme will be applicable to the top QHEIs as determined by the NIRF rankings – including all HEIs, government and private that are ranked within the top 100 in NIRF in overall, category-specific and domain-specific rankings, State Government HEIs ranked in 101-200 in the NIRF and all Central Government-run institutions.
• This list will be updated every year using the latest NIRF ranking, and to begin with 860 qualifying QHEIs, covering more than 22 lakh students to be able to potentially avail benefits of PM-Vidyalaxmi, if they so desire.
• The Department of Higher Education will have a unified portal “PM-Vidyalaxmi” on which students will be able to apply for the education loan as well as interest subvention, through a simplified application process to be used by all banks.
• Payment of interest subvention will be made through E-voucher and Central Bank Digital Currency (CBDC) wallets.

NAMO DRONE DIDI

Context:

• Department of Agriculture & Farmers’ Welfare has released the Operational Guidelines of Central Sector Scheme “NAMO DRONE DIDI”

About Namo Drone Didi:

• The Government has approved the Central Sector Scheme ‘Namo Drone Didi’ for providing Drones to the Women Self Help Groups (SHGs) under DAY-NRLM.
• The scheme aims to provide drones to 14500 selected Women SHGs during the period from 2024-25 to 2025-2026 for providing rental services to farmers for agriculture purpose (application of liquid fertilizers and pesticides for the present).

Major components of the operational guidelines:

• The Scheme will be governed at the Central level by the Empowered Committee of the Secretaries of various Departments.
• Under the scheme, a Central Financial Assistance @ 80% of the cost of drone and accessories/ancillary charges up to a maximum of ₹ 8.0 lakhs will be provided to the women SHGs for purchase of drones as a package.
• The Cluster Level Federations (CLFs) of SHGs may raise the balance amount (total cost of procurement minus subsidy) as loan under National Agriculture Infra Financing Facility (AIF). Interest subvention @ 3% on the AIF loan will be provided to the CLFs/SHGs.
• One of the members of the women SHGs will be selected for 15 day training comprising of mandatory drone pilot training and additional training for agriculture purpose for nutrient and pesticide application.
• The Lead Fertilizer Companies (LFCs) responsible for the States will be the implementing agencies of the scheme at the State level.
• Effective monitoring of the scheme will be through an IT based Management Information System (MIS) i.e. Drone Portal which will act as end-to-end software for service delivery and monitoring, funds flow and disbursement of funds.
• The portal will also track operations of each drone and provide live information on drone usage.
• It is envisaged that the initiatives under the scheme will provide sustainable business and livelihood support to SHGs and they would be able to earn additional income for them.
• The scheme will help in infusing advance technology in agriculture for improved efficiency, enhanced crop yield and reduced cost of operation for the benefit of farmers.

Gold prices

Why is gold considered a safety cushion by central banks? When does demand for the yellow metal peak in India? Why does the World Gold Council expect an increased demand for gold from rural areas? What factors determine gold prices?

Introduction:

• Mired amidst geopolitical tensions and economic uncertainty, spot price of gold scaled a record high of $2,758.37 for an ounce in October.
• In India, gold was mirroring the upward trajectory at ₹7,513.37/gram, 40% higher than ₹5,354.20/gram a year ago.
• Imperative to note, the demand for the yellow metal has historically been observed to peak in lieu of the festive season, thus, potentially translating to a positive effect on its prices.

Determinants of price of gold:

• Central to the assessment are two currents: prevailing investor appetite (compared to other assets such as bonds) but more importantly, the yellow metal’s safe haven characteristic.
• Gold has lower co-relation with other asset classes and, therefore, provides a safety cushion during periods of geopolitical stress and prevailing economic uncertainty and/or downturn in markets.
• Further, prices of gold are suggested to hold an inverse relationship with interest rates.
• That is, when interest rates are tightened gold becomes less attractive to investors as they do not offer any yield – even in tightened conditions.
• Conversely, lower interest rates coupled by a weaker dollar can prompt investors to also opt for the safety bullion cushion.
• However, the relationship is not airtight and has been observed to prompt exceptions owing to inflationary conditions and/or geopolitical tensions, among other factors.
• The notion about gold being a safety cushion is best reflected in the purchase of the yellow metal by central banks to hedge against global uncertainties, other than diversifying their forex reserves.
• For perspective, as per the World Gold Council (WGC), central banks made net purchases of 8 tonnes in August.
• Leading buyers were the National Bank of Poland, Central Bank of the Republic of Turkey followed by the RBI.
• Broadly, gold prices are determined by forces of supply and demand.
• Imperative to note here, that gold is finite.
• The gestation period from mining to production cannot effectively respond to market dynamics.
• According to WGC, it often takes decades to move from discovery of a mine to production.

Demand dynamics of gold in India:

• Demand for the yellow metal traditionally peaks in the second half of the year with the arrival of the festive season and the onset of the wedding season.
• The buffer period in between (generally, mid-September to the onset of October) is considered inauspicious for such purchases as per the Hindu calendar.
• According to the WGC’s October update, the above stipulated buffer period further marred by high prices have kept consumers away from buying the precious metal.
• However, it observed from market reports, about resurgence in gold buying with the festive season and a demand largely driven by wedding purchases.
• With respect to prices, the monthly report held that the price increased in September primarily because of a decline in the U.S. dollar with the Fed’s rate cut.
• This coupled with geopolitical tensions helped the rally.
• Imperative to note that globally the prices of gold are referenced in U.S. dollars.
• Thus, the decline in dollar spurs demand for the yellow metal seeking safe haven and hedging.

Future scenario:

• Prices of the yellow metal may further continue their upward trajectory.
• The investment interest is being supported by strong price performance of the yellow metal.
• WGC expects an increased demand for the yellow metal from rural areas emanating from “improvements in overall consumption”.
• It observes, “Favourable monsoons and higher crop sowing this year are anticipated to boost rural incomes, potentially leading to higher gold purchases.”
• Strong monsoons have raised rural consumers’ spending power, which has raised demand in both rural and tier II and III cities.
• Gold demand is typically high throughout the festive and wedding seasons, which we are currently in.

UPSC Mains PYQ:

• Craze for gold in Indians has led to a surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of the Gold Monetization Scheme. (2015)

Ranthambore Tiger Reserve

Context:

• 25 out of 75 tigers in Ranthambore National Park missing over last year, say officials
• Park officials have said that Ranthambore faces challenges due to tigers’ overcrowding, which leads to fights over territory.
• With 75 tigers — that includes young tigers and cubs — the park’s 900 square kilometres is struggling to support them.
• According to a study by the Wildlife Institute of India (2006-2014), the park can safely house around 40 adult tigers.

About Ranthambore Tiger Reserve:

• It is located in Rajasthan.
• It comprises of Ranthambore National Park, Sawaimadhopur Sanctuary, Sawaiman Singh sanctuary, Keladevi sanctuary and part of National Gharial Sanctuary besides other forest areas.
• It is tucked between the rugged Aravali and Vindhya hills.
• It is bounded to the north by the Banas river and to the south by the Chambal river.
• It is dry deciduous forests and open grassy meadow.

Tigers:

• Ranthambore is known for its Bengal tiger population.
• During the past few years, there has been a decline in numbers due to poaching and other reasons.
• The number of tigers was 25 in 2005 and 48 in 2013.
• As of 2022, there were 80 tigers in the park.

Basic Structure

Context:

• Validity of law cannot be challenged for violating Basic Structure: Supreme Court
• The reason is that concepts such as democracy, federalism, and secularism are undefined concepts.
• Allowing courts to strike down legislation for violation of such concepts will introduce an element of uncertainty in our constitutional adjudication.

News:

• The Supreme Court held that the validity of a law cannot be challenged for violating the Basic Structure of the Constitution.
• A three-judge Bench, while upholding the State’s power to legislate to regulate madrasas, was responding to whether the Basic Structure doctrine can be applied to invalidate an ordinary legislation.

More info:

• Authoring the judgment, Chief Justice Chandrachud said the Basic Structure doctrine was made up of “undefined concepts” such as democracy, federalism and secularism.
• “Allowing courts to strike down legislation for violation of such concepts will introduce an element of uncertainty in our constitutional adjudication,” the Chief Justice reasoned.
• The Allahabad High Court finding that the Uttar Pradesh Madrasa Education Board Act, 2004 had disregarded secularism must be traced to specific constitutional provisions dealing with the Basic Structure concept.
• “In a challenge to the validity of a statute for violation of the principle of secularism, it must be shown that the statute violates provisions of the Constitution pertaining to secularism,” Chief Justice Chandrachud wrote.

Raj Narain case:

• Chief Justice Chandrachud quoted the various judges on the Bench in the Indira Nehru Gandhi versus Raj Narain case, widely considered as the case which led to the National Emergency in 1975.
• The top court had used the Basic Structure doctrine, evolved in the 1973 Kesavananda Bharati case, for the first time in the Raj Narain case to strike down a Constitutional Amendment.
• The judges on the Raj Narain Bench had differentiated between an ordinary statute and a Constitutional Amendment.
• Chief Justice referred to the observation made by the then Chief Justice, A.N. Ray, that applying the Basic Structure doctrine to test the validity of a statute would amount to “rewriting the Constitution”.
• Justice K.K. Mathew had also found the Basic Structure concept “too vague and indefinite to provide a yardstick to determine the validity of an ordinary law” while his colleague on the Bench in the 1975 case, Justice Y.V. Chandrachud, had opined that Constitutional Amendments and ordinary laws operate in different fields and were subject to different limitations.
• “The majority in Indira Nehru Gandhi versus Raj Narain held that the constitutional validity of a statute cannot be challenged for the violation of the basic structure doctrine,” Chief Justice Chandrachud noted.

UPSC Mains PYQ:

• Parliament’s power to amend the Constitution is a limited power and it cannot be enlarged into absolute power.” In the light of this statement explain whether Parliament under Article 368 of the Constitution can destroy the Basic Structure of the Constitution by expanding its amending power? (2019)