05 Oct PRELIMS BITs: The MPC, International Energy Efficiency Hub.
This article covers “Daily Current Affairs” and topic details of the PRELIMS BITs:
Syllabus mapping:
General Studies: Various events of national and international importance.
India Joins International Energy Efficiency Hub
Why in the News?
The Union Cabinet of India, chaired by Prime Minister Narendra Modi, has approved the signing of a ‘Letter of Intent’ for India to join the International Energy Efficiency Hub.
Key Facts About the International Energy Efficiency Hub
Established: in 2020, as a successor to the International Partnership for Energy Efficiency Cooperation (IPEEC).
Members: As of July 2024, the Hub includes 16 countries: Argentina, Australia, Brazil, Canada, China, Denmark, European Commission, France, Germany, Japan, Korea, Luxembourg, Russia, Saudi Arabia, the United States, and the United Kingdom.
Objective: To foster collaboration among governments, international organizations, and private sectors to promote energy efficiency worldwide.
Activities: Sharing knowledge, best practices, and innovative solutions related to energy efficiency.
Implementing Agency in India: The Bureau of Energy Efficiency (BEE) will represent India in the Hub and facilitate participation.
Significance of India’s Membership
Access to Expertise: Membership allows India to tap into a vast network of experts and resources, enhancing domestic energy efficiency initiatives.
Collaboration Opportunities: India can collaborate with member states, sharing its expertise while learning from international best practices in energy efficiency.
Climate Change Mitigation: By promoting energy-efficient technologies and practices, India contributes to global efforts to combat climate change.
Sustainable Development: Joining the Hub aligns with India’s goals for sustainable development, supporting the transition to a low-carbon economy.
Improved Energy Security: Participation in this global platform is expected to help accelerate India’s transition to a more energy-secure future.
INSV Tarini Sails Out for Navika Sagar Parikrama II
Why in the News?
On October 2, 2024, the Indian Navy’s expedition Navika Sagar Parikrama II was officially flagged off from the Ocean Sailing Node at INS Mandovi, Goa.
Key Facts About Navika Sagar Parikrama II
Officers: Lt Cdr Dilna K and Lt Cdr Roopa A, who have extensive sailing experience.
Vessel: INSV Tarini, a 56-foot sailing vessel built by M/s Aquarius Shipyard Ltd.
Previous Experience: INSV Tarini has clocked more than 66,000 nautical miles and participated in significant expeditions, including the first edition of Navika Sagar Parikrama in 2017.
Significance of the Expedition
Empowerment of Women: The expedition symbolizes “Nari Shakti” in the maritime domain, showcasing the capabilities of women in traditionally male-dominated fields.
Maritime Awareness: Navika Sagar Parikrama II represents a significant step in fostering maritime consciousness and promoting India’s maritime endeavors on a global stage.
Legacy of Seafaring: The initiative pays tribute to the visionary contributions of pioneers like Late VAdm MP Awati and other naval leaders who have set a precedent for circumnavigation on sailboats.
National Pride: The voyage serves as a platform to demonstrate India’s commitment to excellence and resilience, reflecting the confidence and determination of modern India.
Support and Mentorship: The officers received extensive training and support from experienced mentors, emphasizing the importance of preparation and psychological conditioning for facing challenges at sea.
Government Notifies Reconstitution of the Monetary Policy Committee
Why in the News?
On October 1, 2024, the Government of India announced the reconstitution of the Monetary Policy Committee (MPC) under the Reserve Bank of India Act, 1934.
Key Facts About the Monetary Policy Committee
Legal Framework: Established under the provisions of the Reserve Bank of India Act, 1934, following the Finance Act of 2016, which amended the RBI Act and replaced the Technical Advisory Committee.
Role: The MPC’s primary role is to set the benchmark interest rate, known as the repo rate, to keep inflation within a target level. It also assesses the economic situation to make informed policy decisions.
Composition: The MPC consists of six members: three from the Reserve Bank of India (RBI) and three appointed by the Central Government.
Chairperson: Governor of the Reserve Bank of India (ex officio)
Function: The MPC meets at least four times a year to make decisions based on a majority vote. In case of a tie, the governor has the casting vote. The decisions made by the MPC are binding on the RBI.
Process: The MPC’s decisions are published after each meeting, with each member explaining their opinions. To maintain confidentiality, the MPC observes a “silent period” of seven days before and after the rate decision.
Term of Office: The members appointed by the Central Government will hold office for four years, effective immediately or until further orders, whichever is earlier.
Significance of the Reconstitution
Monetary Policy Formulation: The MPC plays a crucial role in formulating and guiding India’s monetary policy, impacting inflation rates and economic growth.
Interest Rate Influence: The MPC’s decisions affect interest rates, which in turn influence individuals’ decisions to invest or consume, thereby impacting economic growth, employment, and inflation.
Expertise and Experience: The inclusion of distinguished economists and academic leaders brings valuable expertise to the committee, enhancing its effectiveness in decision-making.
Stability in Economic Environment: A well-functioning MPC contributes to the stability of the financial system, fostering confidence among investors and the general public.
Transparency and Accountability: The reconstitution reflects the government’s commitment to transparency and accountability in the monetary policy framework.
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PRELIMS QUESTIONS:
Q.1. Consider the following statements:
Statement-I: Recently India joined the International Energy Efficiency Hub which is a collaborative platform to increase energy efficiency.
Statement-II: The initiative aligns with India’s goals for sustainable development, supporting initiatives to combat climate change.
Which one of the following is correct in respect of the above statements?
A. Both Statement I and Statement II are correct and Statement II is the correct explanation for Statement I
B. Both Statement I and Statement II are correct and Statement II is not the correct explanation for Statement I
C. Statement I is correct but Statement II is incorrect
D. Statement I is incorrect but Statement II is correct
Q.2. With reference to the Monetary Policy Committee (MPC), Consider the following statement:
1. The MPC is a statutory committee set up under the Banking Regulation Act of 1949.
2. The Monetary Policy Committee (MPC) can meet an unlimited number of times in one financial year, with a minimum requirement of four meetings annually.
3. The primary role of the MPC is to monitor and manage inflation in the economy.
How many of the above-given statements are correct?
A. Only one
B. Only two
C. All three
D. None
ANSWER:
1. A
2. B
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