{GS2 – Governance – Laws} Section 45 of PMLA
- Context (TH): The Supreme Court held that bail is the rule and jail an exception even in money laundering cases.
- The court held that Section 45 (conditions for bail) of the Prevention of Money Laundering Act (PMLA) should not be construed by the prosecution in such a way to make bail an impossibility in money laundering cases.
- Section 45 states that an accused person shall not be granted bail unless:
- The Public Prosecutor has been given an opportunity to oppose the application for such release;
- if the public prosecutor opposes the application, the court can grant bail if it is satisfied that the twin conditions of bail are fulfilled:
- There are reasonable grounds for believing that he is not guilty of such offence and
- He would not commit any crime while out on bail.
- The court said bail is must if the twin conditions of Section 45 were satisfied.
- The judgement also stated that liberty of the individual is always a rule; deprivation an exception.
{GS2 – IR – India-Brazil} India-Brazil Strategic Partnership
- Context (TH): The India-Brazil strategic partnership established in 2006 has “deepened and diversified” over the years and now spans a very wide range of domains
Areas of Cooperation
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Political Cooperation: Strategic Partnership by deepening their cooperation in
BRICS,
IBSA, G4 &
G20.
- Global South Leadership: They lead South-South cooperation and advocate for large developing countries to shape global rules.
- Bilateral Trade: India is Brazil’s 5th largest trading partner (USD 11 billion). The key exports include agrochemicals and auto components from India and crude oil and sugar from Brazil.
- Investment: Indian investments in Brazil are significant, with USD 6 billion estimations. Sectors include automobiles, IT, and biofuels.
- Defence and Security ties include joint defence committees and cooperation agreements. Notable developments include the joint venture for small arms production and collaborative naval activities.
- Space Cooperation: Both countries collaborate on satellite tracking and space exploration, with Brazil’s Amazonia-1 satellite being a recent highlight.
- Technology Initiatives: The bilateral science and technology cooperation includes agreements on research and development, especially in areas like agriculture and food processing.
- Biofuels and Oil: Cooperation in biofuels and oil, with Brazil’s significant oil reserves and India’s interest in renewable energy, including recent joint working groups on energy.
- Cultural Exchanges: There is considerable interest in Indian culture in Brazil, supported by cultural exchange programs and the strong presence of Yoga and Ayurveda practices.
Challenges Faced
- Trade Competition: India and Brazil face competition in agricultural exports, such as sugar and meat.
- Sugarcane Subsidy Disputes: Brazil’s complaint to the WTO regarding India’s subsidies to sugarcane farmers has caused tension between the two countries.
- Impact of China’s Influence: China’s growing influence in Brazil’s trade and economic landscape affects the India-Brazil relationship, potentially overshadowing India’s partnership with Brazil.
- Differences in Strategic Priorities: Divergent approaches to regional and global issues can create friction between the two countries, affecting their joint efforts on global platforms.
- Geographical and Connectivity Barriers: The lack of direct air connectivity and geographic distance between India and Brazil creates logistical challenges for deepening bilateral cooperation.
Way Forward
- Strengthen Bilateral Relations: Increase high-level visits and joint statements to foster a cooperative environment and address disputes collaboratively.
- Enhance Trade Agreements: Negotiate and implement comprehensive trade agreements to address issues such as trade imbalances and market access.
- Promote People-to-People Exchanges: Launch cultural exchange programs, educational partnerships, and tourism initiatives to build mutual understanding and goodwill.
- Develop Diversified Economic Partnerships: Explore and establish economic partnerships with other countries to reduce reliance on any single nation and mitigate geopolitical risks.
- Align Strategic Priorities: Engage in regular diplomatic dialogues and collaborate in multilateral forums to align strategic interests and address regional security concerns.
- Improve Connectivity: Invest in infrastructure projects that enhance regional connectivity, such as improved transportation links and communication networks.
- G4 nations: A group of four countries, Brazil, Germany, India, and Japan, that support each other’s bids for permanent seats on the United Nations Security Council.
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{GS2 – MoF – Schemes} MUDRA 2.0 Program **
- Context (IE): The article is advocating for the MUDRA 2.0 program, emphasizing the recent enhancement in loan limits and suggesting the need for an updated version of the scheme.
- Launched in 2015, the Pradhan Mantri MUDRA Yojana (PMMY) aimed to ignite entrepreneurship by offering collateral-free micro-loans up to ₹10 lakh.
- The Union Budget 2024 has increased the loan limit to ₹20 lakh benefiting previous MUDRA loan recipients under the Tarun category.
- The MUDRA Scheme disbursed over Rs 27.75 lakh crore to 47 crore small and new entrepreneurs, impacting the grassroots economy.
- The scheme promotes gender equality and social equity, supporting rural and semi-urban job creation and self-employment.
- It has an inclusive approach (69% of loans are held by women; 51% by SC/ST and OBC entrepreneurs).
- Non-performing assets (NPAs) under the scheme have decreased from 3.61% in FY21 to 2.1% in FY24.
MUDRA Products
- Shishu: Loans up to Rs. 50,000.
- Kishore: Loans from Rs. 50,000 to Rs. 5 lakh.
- Tarun: Loans from Rs. 5 lakh to Rs. 10 lakh.
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Challenges Faced by PMMY
- Targeting Difficulties: Ensuring benefits reach the smallest and most marginalized entrepreneurs, especially in rural and remote areas, has been challenging.
- Skewed Loan Distribution: Disparities in fund allocation, with top districts receiving more than Rs 26,000 crore in 2021-22 compared to the bottom 318 districts.
- High NPAs in Certain Categories: Kishore and Shishu categories face higher NPAs due to a lack of business skills among early-stage entrepreneurs.
- Many beneficiaries are financially illiterate (73%) especially first-time borrowers, leading to defaults and financial mismanagement.
- Inadequate monitoring and implementation have resulted in leakages and misuse of funds.
- Maintaining quality credit appraisal amidst increased lending pressures is challenging, with exposure growing from Rs 3.3 lakh crore in FY22 to over Rs 5 lakh crore by FY24.
- The absence of a robust credit guarantee mechanism has made banks hesitant to lend, particularly to small enterprises, limiting their growth opportunities.
Recommendations for MUDRA 2.0
- Focused Outreach: Establish empowerment zones in rural and semi-urban areas to provide comprehensive services, including financial literacy, mentorship, and business support.
- Enhanced Financial Literacy: Implement nationwide financial literacy programs covering budgeting, savings, credit management, investment strategies, and digital literacy to empower entrepreneurs.
- Enhanced Credit Guarantee Scheme (ECGS): Introduce an ECGS to provide credit guarantees and reduce risks for financial institutions, encouraging more lending to small and micro enterprises.
- Real-time robust monitoring and evaluation framework system: To be developed to track loan disbursements, utilization, and repayments.
- Beneficiary impact assessments: To measure socio-economic outcomes and improve transparency and efficiency.
- Credit appraisal processes: To ensure quality lending & manage increased lending pressures.
- Targeted support for high-risk categories, such as Kishore and Shishu loans, to address higher NPAs and improve financial management among early-stage entrepreneurs.
{GS3 – Agri – Crops} Dhaincha
- Context (TH): Dried Dhaincha stems are used by villagers living in low-lying areas of Assam to use them as kindling during floods.
- It is native to Asia and North Africa, is most common in tropical Africa where it grows as a common noxious weed, and has been introduced to the Americas.
- It can grow on saline soil and is adapted to wet, heavy soil but apparently adapts easily to drought-prone or sandy regions.
- It can be grown on all season having sufficient moisture in soil.
- It is cultivated widely in India and grown in rice paddies for using it as firewood. The foliage makes a good fodder for livestock.
- It is generally used as green manure crop. It not only improve physical properties but is also a leguminous plant and thus helps in meeting nitrogen requirement of succeeding crop.
Green Manuring
- Green Manuring is growing of field plants belonging to leguminous family and incorporating them into the soil after sufficient growth. It encourages sustainable agriculture and organic farming.
- Objectives: It improve soil structure, increase water holding capacity and decrease soil loss by erosion, reduce weed proliferation and weed growth, reclamation of alkaline soils, add organic matter to the soil.
- It simulates activity of soil micro-organisms and take nutrients from lower layers of the soil and add it to the upper layer in which it is incorporated.
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{GS3 – Envi – Conservation} Ethanol Production Capacity **
- Context (TH): India plans to increase ethanol blending to 20% by 2025-26 (current rate 13-15%).
- With this, India aims to reduce greenhouse gas emissions, save $4 billion annually in foreign exchange, and boost rural economies through crop cultivation.
- 20% blending requires producing 1,000 crore litres of ethanol, and an additional 310 crore litres is needed for consumable liquor and industrial uses.
- Current ethanol production capacity is 1,380 crore litres (875 crore litres from sugarcane, 505 crore litres from food grains), nearly achieving the target with a higher sugarcane component.
Policy Measures
- NITI Aayog’s roadmap aims to increase sugarcane-based distilleries from 426 crore litres in 2021 to 760 by 2026, and grain-based distilleries from 258 to 740 crore litres.
- In 2022-23, 63% of fuel ethanol came from B-heavy molasses. With a surplus of sugarcane (340 lakh tonnes produced and 285 lakh tonnes consumed in 2023-24), restrictions on its use for ethanol production are expected to be lifted.
- The government policy supports using maize, surplus rice, and damaged grains for ethanol production.
- B-heavy molasses (used for sugar production) were permitted to be used by the government for ethanol production to boost output, but its high sugar content influences ethanol pricing.
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Concerns
- Water Use: Expanding sugarcane production for ethanol will require an additional 400 billion litres of water, potentially reducing irrigation for food crops.
- Grain-Based Distilleries: With restrictions on molasses, grain-based distilleries are operating at full capacity, which is affecting the availability of maize for other uses, especially poultry feed (47%).
- Maize Imports: Maize imports, valued at $103 million from April to June 2024, have increased compared to $39 million for the whole of 2023-24.
- Maize Cultivation: Meeting the blending target requires an additional 4.8 million hectares of maize cultivation, almost doubling current levels.
- India is one of the major maize producers globally, but domestic consumption consistently outpaces production and India’s maize yield is much lower than other countries.
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- Fuel Efficiency: Ethanol reduces fuel efficiency by 6% in non-compatible vehicles.
- ENA Pricing: Fuel ethanol pricing is uniform across India, but States set the pricing for Extra Neutral Alcohol (ENA) (used in liquor production and other applications) creating variations in prices.

Source: The Hindu
State Perspectives on Ethanol Policy
- Uttar Pradesh: Aligns with the ethanol mission and is a major contributor to the ethanol blending program, reserving 25% of ethanol for ENA and distilleries processing both sugarcane and grain.
- Tamil Nadu: Ethanol use is limited due to the state’s reliance on liquor revenue (1/6th of total revenue), restricted sugarcane cultivation due to water needs, and potential political backlash from supplying broken rice for ethanol.
- Maharashtra: Focuses on producing ENA for various uses like fashion and medicine due to higher profitability compared to fuel ethanol.
Way Forward for Ethanol Blending in India
- Leverage Regional Strengths:
- Promote maize-based distilleries to address sugarcane dependence and water issues in Tamil Nadu.
- Offer stable contracts for fuel ethanol to boost attractiveness over ENA in Maharashtra.
- Refine Pricing & Policy:
- Standardize ethanol pricing nationwide for fair competition and higher production.
- Extend interest subventions and raise ethanol prices to encourage investment and growth.
- Encourage Technological and Policy Innovation:
- Invest in advanced ethanol technologies to minimize food resource impact.
- Build infrastructure to support increased production and blending, including logistics and storage.
To know more > Ethanol Blending, Ethanol Blended Petrol (EBP) Programme
{GS3 – IE – Industry} Industrial Parks
- The Greenfield industrial “smart cities” can attract potential investments, provide millions of direct and indirect jobs, and will offer investors a ‘plug and play’ alternative to set up shops.
Greenfield Investment |
Brownfield Investments |
- A new venture is began by constructing new facilities instead of buying an existing facility.
- Advantage: It offers design flexibility along with the efficiency to meet the project’s needs.
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- It occur when an entity purchases or leases an existing facility to begin new production.
- Advantage: It reduces start-up costs, time for the construction of new infrastructure.
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Read more> National Industrial Corridor Development Programme, Cabinet committees
{Prelims – S&T – Defence} SIG 716 rifles
- Context (TH): The Ministry of Defence signs a repeat order for 73,000 SIG 716 rifles.
- The SIG716 is an assault rifle manufactured by SIG Sauer which has an effective range of 600 m and is more capable and reliable than the INSAS in use.
- Its robust design and capability make it ideal for long-range engagements. It also has the capability to penetrate tougher targets.
- Its gas piston system enhances reliability and reduces maintenance needs, a significant advantage in hostile environments or during extended operations.
- Additionally, the modularity of the SIG 716 allows for easy adaptation to various roles making it extremely versatile for armed forces and specialized tactical units.
- It is used as a DMR (Designated Marksman Rifle), a medium-range precision rifle, or as an individual long-range weapon useful in mountain combat or areas with vast open spaces.
Indian Small Arms System (INSAS)
- It is a family of infantry arms consisting of an assault rifle and a light machine gun (LMG) whose development began in the mid-1980s.
- These weapons were developed indigenously by the Armament Research and Development Establishment and manufactured by the Ordnance Factories Board at its various factories.
- It was the standard infantry weapon of the Indian Armed Forces for almost three decades.
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