DAILY NEWS ANALYSIS

Bhima-Koregaon Battle

Recently, the Battle of Koregaon Bhima celebrated its 205th anniversary.

What was the Battle of Bhima Koregaon?

• On January 1, 1818, 800 British East India Company soldiers and 800 Maratha warriors fought in the Battle of Koregaon in the village of Koregaon, Maharashtra.
• The Peshwa army were effectively repelled by the East India Company soldiers, who also stopped them from entering Pune.
• Baji Rao II withdrew his troops from Koregaon and abandoned his plans to attack Pune after a 12-hour battle in which 600 men were lost and he feared reinforcements from Pune.

What Motivated the Battle's Conduct?

• By the end of the 18th century, the Peshwas had established themselves as the Deccan rulers.
• By 1802, the Maratha rulers of the Deccan, including the Peshwas of Pune, the Scindias of Gwalior, the Holkars of Indore, the Gaekwads of Baroda, and the Bhonsles of Nagpur, had signed treaties with the British East India Company.
• These past kings gave up many of their lordship, revenue, and other privileges as a result of the treaties.
• The last of the reticent Maratha leaders, Baji Rao II, the Peshwa leader, was overthrown by the British at the Battle of Khadki in November 1817 and fled to Satara.
• At the end of December 1817, Baji Rao, who had been cornered after being followed by British Colonel Smith for two months, directed his attention and his 30,000-man army toward Pune.

About the Mahars:

• Mahars were historically regarded as being untouchables.
• However, because of the nature of their jobs—which frequently involved military or administrative duties—they frequently interacted with upper castes.
• In the 17th century, Maratha King Shivaji enlisted some Mahars into the Maratha army.
• The Mahar men frequently worked as soldiers or guards.
• The Mahar community also fought alongside Peshwa armies in various wars, including the third battle of Panipat.
• However, after Baji Rao II allegedly insulted the group by turning down their offer to join and serve in his army, ties between the Mahars and Peshwas soured.

Why Is the Fight for Dalit Rights Important?

• Mahars were regarded as untouchables in the 19th century, while Peshwas were high-caste Brahmins.
• Mahars were notoriously persecuted by the Peshwas.
• Mahar Dalits experienced a number of injustices during the Peshwa era.
• For the Dalits, who had long suffered marginalisation and oppression, this triumph was momentous.
• The names of 49 troops are inscribed on a 60-foot commemorative obelisk that was built at the scene of the battle in memory of the Bombay Native Infantry's fallen soldiers.
• There were 22 names on the list that belonged to members of the Mahar community.
• The obelisk was constructed by the British in 1818, but it wasn't displayed on the Mahar Regiment's crest until 1947.
• On January 1, 1927, the 109th anniversary of the fight, Dr. BR Ambedkar paid a visit to the location.

Recent Case of Bhima Koregaon:

• It began on January 1st, 2018.
• There were deadly fights between Dalit and Maratha groups during the celebrations.

Why is there currently violence in Bhima Koregaon?

• Right-wing organizations such as the Akhil Bhartiya Brahman Mahasabha, Hindu Aghadi, and Rashtriya Ekatmata Rashtra Abhiyan opposed the event as anti-national and casteist before the commemoration of the battle's 200^th-anniversary event took place on January 1.
• The anniversary serves as a rallying cry for all Indians to resist forces that incite caste-based violence and hatred.
• There were members of every caste in the British army, including Mahar, Maratha, and even Brahmins.
• People from various castes, including Maratha and Mahar, served in the Peshwa army as well.

Year-End Review-2022: Department of Space

The Ministry of Science and Technology recently published the Year-End-Review for the Department of Space for the year 2022.

What are the Department of Space's major accomplishments?

Support for education, development of capacity, and outreach:

Space Technology Incubation Centers (STIC):

• Since its establishment in 2018, STIC has boosted space research operations.
• Nine Space Technology Cells (STC), six STIC, and six Regional Academic Centers for Space (RACS) are currently in existence as part of this effort.

Satish Dhawan Centre for Space Sciences:

• Recently, Satish Dhawan Centre for Space Sciences was jointly established by ISRO/DoS and Central University of Jammu.

Unispace Nanosatellite Assembly & Training by ISRO:

• In June 2018, India announced UNNATI (UNispace Nanosatellite Assembly & Training by ISRO), a capacity-building training programme on Nanosatellites development through a combination of theoretical coursework and practical training on Assembly, Integration, and Testing (AIT).

Young Scientist Program:

• In accordance with the government's goal of "Jai Vigyan, Jai Anusandhan," ISRO introduced an annual special programme in 2019 named "Young Scientist Program" or the "Yuva VIgyani KAryakram" (YUVIKA).
• The Program's major goal is to teach young people the fundamentals of space technology, space science, and space applications in order to inspire them to pursue careers in the intriguing field of space exploration.

SpaceTech Innovation Network (SpIN):

• In December 2022, ISRO and Social Alpha inked a memorandum of understanding to establish SpIN as India's first specialised platform for innovation curation and business development for the booming space entrepreneurial ecosystem.

Important Missions:

• Since 2014, 44 spacecraft missions, 42 missions involving launch vehicles, and 5 missions involving technology demonstrations have all been accomplished successfully.

Mission Chandrayaan-2:

• Chandrayaan-2 was launched in 2019.
• It is giving the scientific community useful data they can use.

PSLV's 50th launch:

• The PSLV, or workhorse launch vehicle, made its 50th launch in December 2019 with the launch of PSLV-C48/RISAT-2BR1.
• By enabling continuous border surveillance, RISAT-2BR1 will prevent infiltration.

The ISRO System for Safe & Sustained Operations Management (IS4OM)

• It was dedicated to the country by the Ministry of Science in July 2022.

• It is a facility designed with a comprehensive strategy for assuring safety and sustainability while gaining the advantages of sustainable space utilisation for national growth.

LVM3/OneWeb India-1 is the Launch Vehicle Mark (LVM) 3:

• In October 2022, the mission was successfully completed.

• With this launch, LVM3 epitomises the Atmanirbharata and strengthens India's competitive position in the market for international commercial launch services.

Airdrop Test with Main Parachute Integrated (IMAT):

• In November 2022, IMAT of the crew module deceleration system was successfully completed at Babina Field Fire Range (BFFR), Jhansi, Uttar Pradesh, as part of the Gaganyaan programme.

Inflatable Aerodynamic Decelerator (IAD):

• Indian Space Research Organization (ISRO) successfully showed innovative technology with this game-changing device that has numerous uses for upcoming missions.
• The IAD offers enormous promise for a range of space applications, including recovering rocket spent stages, putting payloads on Mars or Venus, and building habitats for manned space missions.

PSLV-C54:

• In November 2022, PSLV-C54 successfully launched EOS-06 and eight nano-satellites, including INDIA-BHUTAN SAT (INS-2B).
• India's attempts to support Bhutanese King Jigme Khesar Namgyel Wangchuck's intentions to utilise cutting-edge technology, particularly ICT and space technology, for the development of Bhutan include the launch of the new satellite.

First Private Launchpad & Mission Control Center:

• In November 2022, M/s Agnikul Cosmos Pvt. Ltd., Chennai, erected the first private launchpad & mission control centre on the ISRO premises at SDSC, SHAR.

Indian Space Policy - 2022:

• The Space Commission has approved the Indian Space Policy - 2022 policy. The Policy is currently through a second approval process after extensive discussions with industry organisations and inter-ministerial dialogues. It has also been reviewed by Empowered Technology Group.

Manage disasters:

• Monitoring flood inundation, creating flood hazard zonation atlases of flood-prone states, developing flood early warning models, identifying and disseminating active forest fires on a daily basis, forecasting cyclone track, intensity, and landfall, estimating damage from earthquakes and landslides, etc. were all done.

Reforms and Increased Industry Participation:

NewSpace India Limited (NSIL):

• The NSIL was incorporated in 2019 as a Central Public Sector Enterprise and a fully owned Government of India undertaking (CPSE).
• It was designed to make it possible for Indian Industries to expand their high-tech manufacturing base for their space programme and to commercially exploit the goods and services that came from their space programme to satisfy the needs of both domestic and international customers.
• In June 2022, the GSAT-24 communication satellite—the first NSIL demand-driven mission—was launched from Kourou, French Guiana.

IN-SPACe:

• IN-SPACe was established to give private businesses an equal opportunity to utilise Indian space infrastructure.
• It serves as a central point of contact between ISRO and anyone wishing to engage in space-related activities or utilise Indian space resources.

Indian Space Association (ISpA):

• ISpA strives to represent the Indian space sector as a whole. Leading domestic and international businesses with cutting-edge skills in space and satellite technologies will represent ISpA.

Bad Bank & NPA

• The Finance Minister recently informed the Parliament that banks had written off bad loans totaling Rs 10,09,511 crore during the previous five fiscal years.

What is a bad bank?

• Non-profitable Assets (NPAs), sometimes known as bad loans, are purchased by bad banks from banks.

• By removing bad loans from banks' balance sheets and allowing them to lend to clients again without restrictions, bad banks are intended to lessen the pressure on banks.
• The bad bank may later attempt to restructure and sell the NPA to investors who might be interested in buying it after purchasing a bad loan from a bank.
• If a bad bank is able to sell a loan for more than it paid for it when it bought it from a commercial bank, it will turn a profit from its activities.

What Benefits and Drawbacks Does a Bad Bank Offer?

Pros:

• It may be possible to group all of the banks' defaulted loans into a single exclusive company.
• In the past, nations including the United States, Germany, Japan, and others have experimented with the concept of a bad bank.
• In the wake of the 2008 financial crisis, the U.S. Treasury established the troubled asset rescue program, popularly known as TARP, which was based on the concept of a bad bank.

Utilization of Unrestricted Capital:

• A bad bank can assist in unlocking capital of more than Rs 5 lakh crore that banks have locked in as provisions against these bad loans by removing bad loans from the accounts of problematic banks.

Cons:

• Government-backed bad banks will essentially transfer troubled assets from public sector banks, which are owned by the government, to bad banks, which are once more owned by the government.
• These institutions face essentially the same problem, there is no reason to think that a simple transfer of assets from one pocket of the government to another will result in a successful resolution of these bad debts.
• Public sector banks are run by bureaucrats who may not always be as committed to guaranteeing these lenders' profitability as private sector banks, which are owned by people with strong financial incentives to manage them well.
• In that sense, saving banks through a bad bank accomplishes little to solve the crisis caused by bad loans.
• Risk of Moral Hazard: Commercial banks that receive bailout money from a bad bank are probably unlikely to change their methods.
• After all, the safety net a bad bank offers provides these lenders greater justification to make risky loans, which worsens the bad loan situation.

Background:

• In 2009, the RBI released guidelines that outlined different NPA classifications and what banks had to do when these defaulted loans grew older.
• The process of NPA recognition was launched by the RBI's master circular in 2009.
• It specifies that if an item has been "doubtful" for a predetermined amount of time, the asset's worth must be paid for in portions as it ages.
• 2014–15: From 2014 to 2015, India became stricter about classifying loans as "bad."
• It was established to conduct periodic asset quality reviews.
• RBI intervened to stop loans from being "evergreened."
• It entails increasing the amount of debt owed on a stressed asset in the hopes that it would recover.
• 2021: A change in 2021 increased the standards for recognition.
• Banks are required to make provisions based on the risk element for that industry, even if the asset is typical and has no issues.
• Similar to how house loans with teaser rates are riskier than those without. As a result, arrangements must be made for these loans.
• In the Union Budget for 2021–2022, a National Asset Reconstruction Company Ltd. (NARCL) was proposed to settle stressed loans totaling approximately 2 lakh crore in stages.

What is a non-performing asset?

• Loans or advances that are in default or are behind on planned principal or interest payments are categorized as NPAs.
• The majority of the time, debt is categorized as non-performing when loan payments have been missed for at least 90 days.
• Gross non-performing assets are the total of all defaulted loans made by borrowers who obtained loans from the financial institution.
• The amount realized after the provision amount has been subtracted from the gross non-performing assets is known as net non-performing assets.

Causes and difficulties with Non-Performing Assets (NPA):

• Rerouting of funds: The promoters of the companies are moving the money in another direction.
• Putting money into unsuccessful projects: High NPAs are the outcome of banks trying to finance unviable projects.
• Ineffective collection efforts against late-paying customers.
• Delayed judicial action: Even if an NPA is fully acknowledged in a given year, it is possible that even the quickest legal proceedings do not result in full recovery.
• Delays in post-haircut payments: Banks may experience delays in post-haircut payments in addition to hefty recovery haircuts.

Financial Operations Affected by NPAs:

• Banks' profits decline.
• This lowers the capital adequacy of a bank or other financial organisation.
• The banks are now reluctant to make loans and assume 100% risk. Therefore, it is prohibited to create new credit.
• Instead of focusing on growing their businesses, banks prioritize managing credit risk.

Way Forward

• The administration of public sector banks will continue to lack professionalism as long as they are dependent on politicians and bureaucrats, which will negatively affect prudential lending standards.
• A bad bank is therefore a fine idea, but the real difficulty is in addressing the underlying structural issues in the financial system and proposing adjustments in line with them.

SAIME Initiative in Sundarbans

• A fresh shrimp farming effort in Sundarbans raises the prospect of mangrove regeneration.

What does SAIME stand for?

• Farmers in West Bengal have started growing shrimp on 30 hectares as part of the Sustainable Aquaculture In Mangrove Ecosystem (SAIME) initiative.
• Farmers are planting mangrove trees around the shrimp ponds. Earlier farmers had to buy shrimp feed, now the mangrove leaf litter provides nourishment for the crustaceans
• NGOs like Naturland, Bangladesh Environment and Development Society (BEDS), Global Nature Fund (GNF), and Nature Environment and Wildlife Society (NEWS) are spearheading the community-based effort of sustainable shrimp cultivation, which was launched in 2019.
• Shrimp farming and the mangrove ecology are intertwined, unlike the earlier fisheries cultivation which were expanded inward and the mangrove ecosystem was left out.
• Farmers are cultivating indigenous varieties of shrimps such as black tiger shrimp (P. monodon) and giant freshwater prawn (M. rosenbergii ).
• One of the main industries in the Sundarbans,( a complex system of rivers and low-lying islands that experience twice-daily tide surges,) is fishing, notably shrimp farming.
• About 15,000 to 20,000 hectares of India's unique ecology are used for shrimp farming.

What is the Sundarbans Delta's Significance?

• The Sundarbans, located on the Ganges, Brahmaputra, and Meghna River deltas on the Bay of Bengal, are home to the biggest mangrove forests in the world.
• The mangrove ecosystem is a highly specialised environment that can be found in tropical and subtropical areas between the land and the sea.
• Many animal species have their natural homes in the Sundarbans, where a huge number of species have been observed to feed, breed, and find shelter.
• Numerous rare and endangered wildlife species, including the estuary crocodile, water monitor lizard, Gangetic dolphin, and olive ridley turtle, call this region home.
• India has (40% ) and Bangladesh has (60%) of the area of the Sundarbans. In 1987 (India) and 1997 (Bangladesh), Sundarbans received the UNESCO World Heritage designation.
• In January 2019, India's Sundarbans Wetland received Ramsar Convention recognition as a "Wetland of International Importance."