NATIONAL:
1. Vande Bharat in Northeast
Why in news - PM Narendra Modi Monday virtually inaugurated the first Vande Bharat Express in the Northeast.
Key Points –
• Connects - Guwahati (Assam) to New Jalpaiguri (West Bengal).
Value Addition –
• Capitals of India’s northeastern states would soon be connected by rail by 2024.
• Currently, all northeastern states barring Sikkim are connected through rail.
INTERNATIONAL:
1. Lower Arun Hydropower Project (HPP)
Why in news - Nepal allowed India's Satluj Jal Vidyut Nigam (SJVN) Limited to develop a second hydropower project in the country.
Key Points –
• To develop the 669-megawatt (MW) Lower Arun Hydropower project in eastern Nepal.
• 3rd project on the Arun River after Arun-III (900 MW) and Arun-IV (695 MW) HPP.
About the Project –
• Location - Sankhuwasabha and Bhojpur districts.
• No provision for reservoir or dam.
• A tailrace development of Arun-III. It mean water re-enters the river for the Lower Arun project.
Value Addition -
• SJVN has formed a local company, Lower Arun Power Development Company, in Nepal.
• At present SJVN is developing a 900-MW Arun -III HPP, a run-of-river located on the Arun River in Eastern Nepal, to be completed in 2024.
ECONOMY:
1. Evergreening of Loans
Why in news - RBI governor Shaktikanta Das cautioned against evergreening of loans.
Key Points –
• Banks were using innovative ways to conceal the real status of stressed loans.
• If an account turns into a non-performing asset (NPA), banks are required to make higher provisions which will impact their profitability.
• Provisioning - As per RBI norms, banks must set aside funds to cover losses against their NPA. Such ‘provisioning of funds’ decrease profitability of the Bank.
Value Addition –
• Evergreening of loans - A form of zombie lending. (temporary fix for a bank).
• Stressed Asset = NPA + Loans Written-Off + Restructured Loans.
• Dressing up bad loans –
(a) Give additional funds to companies that don’t have the capacity to repay.
(b) Delay the recognition of losses due to loan defaults.
(c) Rolling over of debts of unviable borrowers.
(d) Extended loans to wilful defaulters to keep them out of the defaulters’ books.
• NPA - if the interest or installment remains unpaid for a period of more than 90 days.
RBI steps to prevent evergreening –
• Asset Quality Review (2015) - A special exercise by the Reserve Bank of India (RBI) inspectors to check bank books. Bank doesn’t change in loan interest, tenure or terms, but asks client to rectify his irregularity in loan-repayment.
• 5/25 for Infrastructure loans - RBI allowed banks to extend infra-loan tenure up to 25 yrs and even decrease loan interest rate. But such interest rate will be reviewed each 5yrs.
SCIENCE – TECH:
1. X-Ray Polarimeter Satellite (XPoSat)
Why in news – ISRO is collaborating with the Raman Research Institute (RRI), Bengaluru to build the X-Ray Polarimeter Satellite (XPoSat).
Key Points –
• India’s first, and only the world’s second polarimetry mission. [1st - NASA’s Imaging X-ray Polarimetry Explorer (IXPE)].
• Aim –
(a) To study various dynamics of bright astronomical X-ray sources in extreme conditions.
(b) To observe polarized X-rays from neutron stars and supermassive black holes.
• It help study where the light came from and understand the geometry and inner workings of the light source.
• Carries 3 space telescopes. Each hosts one light-weight X-ray mirror and one detector unit.
• XPoSat’s payloads –
(a) POLIX (Polarimeter Instrument in X-rays) – to measure the polarimetry parameters (degree and angle of polarisation).
(b) XSPECT (X-ray Spectroscopy and Timing) - to give spectroscopic information (on how light is absorbed and emitted by objects).
Value Addition –
• X-rays have much higher energy and much shorter wavelengths (0.03 and 3 nanometers).
• X-rays consist of moving electric and magnetic waves.
• Physical temperature of an object determines the wavelength of the radiation it emits. The hotter the object, the shorter the wavelength of peak emission.
• X-rays source - Objects that are millions of degrees Celsius such as pulsars, galactic supernova remnants, and black holes.
• Fishermen use polarised lenses to reduce glare from sunlight when they are near water.