GS- 3rd Paper
Topic- Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Bharat Bond Exchange Traded Fund
Context
Cabinet approves launch of Bharat Bond Exchange Traded Fund.
About
- The Government has launched Bharat Bond Exchange Traded Fund (ETF).
- Bharat Bond ETF would be the first corporate Bond ETF in the country.
- Bharat Bond ETF, comprising debt of state-run companies, a move which will allow retail investors to buy government debt.
- It will provide retail investors easy and low-cost access to bond markets, with smaller amount as low as ₹1,000.
- ETFs invest in a basket of securities representing an index, security or commodity and are traded on the stock exchange like any security listed on the exchange.
Features of Bharat Bond ETF
ETF will be a basket of bonds issued by CPSE/CPSU/CPFI/any other Government organization Bonds (Initially, all AAA rated bonds).
- Tradable on exchange
- Small unit size Rs 1,000
- Transparent NAV (Periodic live NAV during the day)
- Transparent Portfolio (Daily disclosure on website)
- Low cost (0.0005%)
Bharat Bond ETF Structure
- Each ETF will have a fixed maturity date.
- The ETF will track the underlying Index on risk replication basis, i.e. matching Credit Quality and Average Maturity of the Index.
- Will invest in a portfolio of bonds of CPSE, CPSU, CPFI or any other Government organizations that matures on or before the maturity date of the ETF.
- As of now, it will have 2 maturity series – 3 and 10 years. Each series will have a separate index of the same maturity series.
Index Methodology
- Index will be constructed by an independent index provider – National Sock Exchange
- Different indices tracking specific maturity years – 3 and 10 years.
Benefits of Bharat Bond ETF to investors
- Bond ETF will provide safety (underlying bonds are issued by CPSEs and other Government owned entities), liquidity (tradability on exchange) and predictable tax efficient returns (target maturity structure).
- It will also provide access to retail investors to invest in bonds with smaller amount (as low as Rs. 1,000) thereby providing easy and low-cost access to bond markets.
- This will increase participation of retail investors who are currently not participating in bond markets due to liquidity and accessibility constraints.
- Tax efficiency compared to Bonds as coupons from the Bonds are taxed at marginal rates. Bond ETFs are taxed with the benefit of indexation which significantly reduces the tax on capital gains for investor.
Developmental impact on Bond Markets
- Target Maturity Bond ETF is expected to create a yield curve and a ladder of Bond ETFs with different maturities across calendar years.
- ETF is expected to create new eco-system – Market Makers, index providers and awareness amongst investors – for launching new Bond ETFs in India.
- This is expected to eventually increase the size of bond ETFs in India leading to achieving key objectives at a larger scale – deepening bond markets, enhancing retail participation and reducing borrowing costs.
GS-3 Paper
Topic- Achievements of Indians in science & technology; indigenization of technology and developing new technology.
First Manned Mission
Context
Outline of First Manned Mission was told in Lok Sabha
The Human Space Mission
- Gaganyaan is targeted for December 2021.
- The design and configuration of major subsystem for Gaganyaan are finalized. The procurement and system/ subsystem realisation for tests and flight has commenced.
- The crew selection and training process for Gaganyaan mission is progressing well including the training in Russia under Gaganyaan Mission.
Mission Gaganyaan
- The Gaganyaan programme is an indigenous mission that would take Indian astronauts to space.
- Gaganyaan is an Indian crewed orbital spacecraft that is intended to send 3 astronauts to space for a minimum of seven days by 2022, as part of the Indian Human Spaceflight Programme.
- The spacecraft, which is being developed by the Indian Space Research Organisation (Isro), consists of a service module and a crew module, collectively known as the Orbital Module.
- Isro’s Geosynchronous Satellite Launch Vehicle GSLV Mk III, the three-stage heavy-lift launch vehicle, will be used to launch Gaganyaan as it has the necessary payload capability.
- GSLV Mk III is designed to carry 4 ton class of satellites into Geosynchronous Transfer Orbit (GTO) or about 10 tons to Low Earth Orbit (LEO).
- The powerful cryogenic stage of GSLV Mk III enables it to place heavy payloads into LEO’s of 600 km altitude.
- The launcher uses two S200 solid rocket boosters to provide the huge amount of thrust required for lift off.
GS-3 Paper
Topic- Science and Technology- developments and their applications and effects in everyday life.
Sustainable Alternative towards Affordable Transportation (SATAT)
Context
Under SATAT initiative, Public Sector Oil Marketing Companies (OMCs), Gail (India) Limited (GAIL) and Indraprastha Gas Limited (IGL) have issued Letters of Intent (LoIs) for setting up Compressed Bio Gas (CBG) plants in the country.
About the SATAT initiative
- Sustainable Alternative towards Affordable Transportation (SATAT) is an effort that would benefit vehicle-users as well as farmers and entrepreneurs.
- The programme will be funded under Solid and Liquid Waste Management (SLWM) component of Swachh Bharat Mission-Gramin (SBM-G) to benefit households in identified villages through Gram Panchayats.
- The initiative will help in efficient municipal solid waste management and in tackling the problem of polluted urban air due to farm stubble-burning and carbon emissions.
Compressed Bio-Gas (CBG) in SATAT Initiative
- Use of CBG will also help bring down dependency on crude oil imports and in enhancing farmers’ income, rural employment and entrepreneurship.
- Compressed Bio-Gas plants are proposed to be set up mainly through independent entrepreneurs.
- CBG produced at these plants will be transported through cascades of cylinders to the fuel station networks of OMCs for marketing as a green transport fuel alternative.
- The entrepreneurs would be able to separately market the other by-products from these plants, including bio-manure, carbon-dioxide, etc., to enhance returns on investment.
Benefits
- It is planned to roll out 5,000 Compressed Bio-Gas plants across India in a phased manner.
- This initiative is expected to generate direct employment for 75,000 people and produce 50 million tonnes of bio-manure for crops.
- It will help people for responsible waste management, reduction in carbon emissions and pollution.
- It will provide additional revenue source for farmers.
- It will boost to entrepreneurship, rural economy and employment.
- It will support to national commitments in achieving climate change goals.
For Prelims
Pact with Germany on Railways
Highlights
- Joint Declaration of Intent (JDI) is declared between India and Germany regarding cooperation on strategic projects in the field of Railways.
Benefits-
- Joint Declaration of Intent (JDI) will provide a platform to Indian Railways to interact and share the latest developments and knowledge in the field of Railways.
- The Joint Declaration of Intent (JDI) will facilitate exchange of information expert meetings, seminars, technical visits and implementation of jointly agreed cooperation projects.
