2 July 2023

• Savings: Government raised interest rates on small savings schemes for the July-September 2023 quarter.
• Defence: Ministry of Defence signed a 2,725-crore-rupee maintenance contract for INS Shankush with Mazagon Dock Shipbuilders.
• Nuclear: India's first indigenous 700 MWe pressurised heavy water reactor at KAPP-3 in Gujarat commenced operations.
• Carbon market: The Power Ministry notified India's first domestic regulated carbon credit trading scheme.
• Diplomacy: The United States voted to rejoin UNESCO after a five-year absence, citing concern over Chinese influence in AI standards.

GS area: Economy, Government schemes

The Government of India revised interest rates on post-office small savings instruments for the second quarter of financial year 2024 (July to September 2023).

• Five-year recurring deposits: Rate raised by 30 basis points to 6.5 per cent per annum.
• One-year post office term deposits: Rate raised to 6.9 per cent.
• Two-year post office term deposits: Rate raised to 7.0 per cent.
• Policy context: Small savings rates are reviewed and notified quarterly. The government typically aligns them with market benchmark rates such as the 10-year government bond yield.

Static linkage: Small savings schemes, monetary policy, financial inclusion.

GS area: Defence, Economy

The Ministry of Defence signed a contract worth 2,725 crore rupees with Mazagon Dock Shipbuilders Limited for the Medium Refit with Life Certification of INS Shankush.

• INS Shankush: A Sindhughosh-class submarine in service with the Indian Navy. The class is a variant of the Soviet-origin Kilo-class diesel-electric submarines.
• Mazagon Dock Shipbuilders: Public sector shipyard in Mumbai under the Ministry of Defence; the primary builder of Indian Navy submarines including the Scorpene-class project.
• Economic multiplier: Over 30 MSMEs are expected to participate in the refit, generating approximately 1,200 man-days of employment.
• Delivery timeline: The refit and certification are targeted for completion by 2026.

Static linkage: Defence procurement, Make in India, Indian Navy.

GS area: Science and Technology, Energy

The Kakrapar Atomic Power Plant Unit-3 (KAPP-3) in Gujarat commenced commercial operations. It is India's first indigenously designed 700 MWe Pressurised Heavy Water Reactor (PHWR).

• Significance: Previous Indian PHWRs operated at 220 MWe or 540 MWe capacity. The 700 MWe design represents a scale-up of the indigenous reactor programme.
• Operator: Nuclear Power Corporation of India Limited (NPCIL).
• Scale-up plan: KAPP-4 was reported as 96.92 per cent complete at the same time. The government has plans for 16 additional 700 MWe reactors at various sites.
• India's nuclear share: Nuclear power contributes a small fraction of India's electricity mix. The target is 22,480 MWe by 2031-32.

Static linkage: Nuclear energy, science and technology, energy security.

GS area: Environment, Economy

The Ministry of Power notified the Carbon Credit Trading Scheme, 2023. This is the framework for India's first domestic regulated carbon market under the Energy Conservation Act.

• Regulator: The Central Electricity Regulatory Commission (CERC) is designated as the market regulator for the carbon credit exchange.
• Oversight: A National Steering Committee headed by the Power Ministry secretary will provide policy guidance.
• Mechanism: Obligated entities that reduce emissions beyond a specified target earn carbon credit certificates. Those that fall short must purchase certificates from overachievers.
• Policy link: The scheme operationalises the carbon market framework envisaged in the Energy Conservation (Amendment) Act 2022.

Static linkage: Climate change, energy regulation, CERC.

GS area: International Relations, Governance

The United States voted to rejoin UNESCO, the UN body for education, science, and culture, after a five-year absence. The decision required a two-thirds majority of the 193 member states; 132 members voted in favour.

• History of US withdrawal: The US first left UNESCO in 1984 citing mismanagement, rejoined in 2002, then withdrew again in 2017 citing Palestinian membership and anti-Israel bias.
• Arrears commitment: The US committed to repaying approximately 619 million US dollars in accumulated dues.
• Strategic motive: A key concern was China's growing influence over UNESCO's AI governance and internet standards work.
• Institutional context: UNESCO is a specialised agency of the United Nations headquartered in Paris. It covers education, natural and social sciences, culture, and communication.

Static linkage: United Nations system, international organisations.

GS area: International Relations, Security

The Institute for Economics and Peace released the Global Peace Index (GPI) 2023. India ranked 126th among 163 countries, improving from 135th in 2022.

• Top-ranked countries: Iceland holds the first position, followed by Denmark, Ireland, New Zealand, and Austria.
• Least peaceful: Afghanistan ranks last, followed by Yemen, Syria, South Sudan, and the Democratic Republic of Congo.
• India's improvement: The two-spot gain is attributed to a reduction in violent crime and modest improvement in regional relations.
• Three measurement domains: The index covers societal safety and security, ongoing conflict, and militarisation.

Static linkage: International indices, peace and security.

• National Doctor's Day (July 1): Celebrated annually to honour Dr. Bidhan Chandra Roy, both on his birthday and his death anniversary. The 2023 theme was "Celebrating Resilience and Healing Hands."
• GST Day (July 1): Marks the sixth anniversary of GST implementation. GST became effective on July 1, 2017, replacing multiple central and state indirect taxes through the 101st Constitutional Amendment.
• Carbon Credit Trading Scheme: The scheme draws on the Energy Conservation (Amendment) Act 2022, which explicitly empowered the Centre to set up a carbon market in India.
• Neeraj Chopra: Won the Lausanne Diamond League with a throw of 87.66 metres, extending his lead in the 2023 Diamond League standings.