DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 5th March 2025
Archives (PRELIMS & MAINS Focus) RATNA STATUS Syllabus: Prelims – CURRENT EVENT Context: The Centre approved the upgradation of Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC) as the country’s 25th and 26th Navratna companies respectively. Background: – All seven listed Central Public Sector Enterprises (CPSEs) of the Indian Railways now have Navratna status. The Indian Railways have a total 12 CPSEs. Key takeaways The Government of India classifies Central Public Sector Enterprises (CPSEs) into Maharatna, Navratna, and Miniratna categories to grant them varying degrees of financial and operational autonomy. This classification aims to enhance efficiency, competitiveness, and decision-making powers in India’s public sector enterprises. Criteria for grant of Maharatna status to CPSEs The CPSEs meeting the following criteria are eligible to be considered for grant of Maharatna status. Having Navratna status Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations An average annual turnover of more than Rs. 25,000 crore during the last 3 years An average annual net worth of more than Rs. 15,000 crore during the last 3 years An average annual net profit after tax of more than Rs. 5,000 crore during the last 3 years Should have significant global presence/international operations. Criteria for grant of Navratna status to CPSEs Navratnas are the second category of the central government-owned ‘Ratna’ companies, placed between the Maharatnas and the Miniratnas. The Department of Public Enterprises (DPE) of the Ministry of Finance picks the CPSEs for Navratna status. Six indicators are considered: (i) ratio of net profit to net worth, (ii) ratio of manpower cost to total cost of production or services, (iii) ratio of profit before depreciation, interest, and tax (PBDIT) to capital employed or return on capital employed, (iv) ratio of profit before interest and taxes (PBIT) to turnover, (v) earning per share, and (vi) inter-sectoral performance of the company. The six indicators carry weights from 10 (for earning per share) to 25 (for ratio of net profit to net worth). If a CPSE has a composite score of 60 or higher for all six indicators, and has obtained an Excellent or Very Good MOU rating in three of the last five years, it is eligible to be considered for Navratna status. Criteria for grant of Miniratna status to CPSE Miniratna Category-I status: – The CPSEs which have made profit in the last three years continuously, pre-tax profit is Rs.30 crores or more in at least one of the three years and have a positive net worth are eligible to be considered for grant of Miniratna-I status. Miniratna Category-II status: – The CPSEs which have made profit for the last three years continuously and have a positive net worth are eligible to be considered for grant of Miniratna-II status. Miniratna CPSEs should have not defaulted in the repayment of loans/interest payment on any loans due to the Government. Miniratna CPSEs shall not depend upon budgetary support or Government guarantees. Source: Indian Express AGRICULTURE INFRASTRUCTURE FUND (AIF) SCHEME Syllabus: Prelims & Mains – AGRICULTURE Context: Punjab has utilised 100% of the Rs 4,713 crore allocated to it by the Centre under the Agriculture Infrastructure Fund (AIF) scheme. Background: – As of February 28, with 21,740 projects, Punjab is at the No.1 position in the country for the highest number of sanctioned projects, said the state government. Key takeaways The Agriculture Infrastructure Fund (AIF) is a central sector scheme, started in 2020 with an aim to provide medium to long-term financing for agriculture infrastructure projects at the post-harvest stage. When the scheme was started, it was meant for post-harvest management and processing at the primary level, but now, integrated processing at the secondary level has also been included. For example, a kinnow farmer could earlier get funds under the scheme for grading, waxing, and packaging of the crop (primary post-harvest processes), but since 2024, can also avail money to make and sell juices, jams, etc. out of his kinnow produce (secondary level). However, the secondary level funds are available only to those involved in the primary processing too. This scheme offers credit guarantees and interest subvention. Farmers, agripreneurs, primary agriculture cooperative societies, farmers producer organisations, start-ups, state sponsored public-private partnerships, state-agencies can apply for funds under this scheme. All loans under this financing facility have interest subvention of 3% per annum up to a loan limit of ₹2 crores. This interest subvention is available for a maximum period of 7 years. In case of loans beyond ₹2 crores, interest subvention is limited up to ₹2 crores. Under the AIF, one can take benefits of other state and central subsidies as well. Credit guarantee support is through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and National Bank for Agriculture and Rural Development (NABSanrakshan) Scheme. Source: The Hindu RARE EARTH MINERALS Syllabus: Prelims & Mains – CURRENT EVENT Context: A proposal by the Trump administration to secure $500 billion worth of profits from Ukraine’s rare earth minerals as compensation for U.S. wartime assistance highlights the strategic importance of these resources. Background: World’s 5% critical raw materials are currently present in Ukraine. 19 million tonnes of proven reserves of graphite are found in Ukraine. Lithium deposits, one third of all of Europe’s, lie in Ukraine. Ukraine also had 7% of world’s titanium production which is utilised in manufacturing aeroplanes to power stations. Ukraine is also the host of significant deposits of rare earth metals. Key takeaways Rare Earth Elements (REEs) or Rare Earth Metals are a set of 17 chemical elements in the periodic table — the 15 lanthanides, plus scandium and yttrium, which tend to occur in the same ore deposits as the lanthanides, and have similar chemical properties. Despite their name, most rare earth elements are relatively abundant in the Earth’s crust, but they are rarely found in concentrated, economically exploitable forms. REEs are classified as light RE elements (LREE) and heavy RE elements (HREE). The 17 Rare Earths are cerium (Ce), dysprosium (Dy), erbium (Er),
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