Satellite-based Toll, QCO relaxation for the Textile sector, Fish Kill in Periyar

• The National Highway Authority of India (NHAI) has invited expressions of interest in implementing a satellite-based electronic toll collection system.
• It proposes to develop a geo-referenced map and a toll-charging software for the Global Navigation Satellite System (GNSS).
• The NHAI said it plans to implement the GNSS-based electronic toll collection system alongside RFID-based Fastags currently used by vehicles.
• Each toll plaza will have two or more dedicated lanes for GNSS-ready vehicles, where barriers will remain open to ensure the free flow of vehicles.
• The lanes will have advanced readers to identify GNSS vehicles.
• Comparison: Satellite-Based vs. RFID-Based Communication in Toll Collection

Dig Deeper: Read about the shortcomings of RFID-based communication.

Advance Authorisation Scheme

• It allows duty-free import of inputs, which are physically incorporated in an export product.
• In addition to any inputs, packaging material, fuel, oil, and catalysts which is consumed/utilized in the process of production of export products, are also allowed.
• DGFT provides a sector-wise list of Standard Input-Output Norms (SION) under which the exporters may choose to apply.
• Alternatively, exporters may apply for their own ad-hoc norms.
• Advance Authorisation covers manufacturer exporters or merchant exporters tied to supporting manufacturer(s).

Quality Control Orders

• QCOs are regulatory measures introduced by the government to establish quality standards for specific products or product categories. These orders ensure that products meet prescribed quality, safety, and performance requirements before they can be manufactured, imported, stored, or sold in the country.
• The primary objective of QCOs is to prevent the import of sub-standard and cheaper items into the domestic market and to ensure that customers have access to quality products that meet necessary standards.
• QCOs cannot be challenged at the World Trade Organization (WTO) if they are imposed for reasons related to health, safety, environment, deceptive trade practices, or national security.
• To ensure compliance with the quality standards set forth in the QCOs, the Bureau of Indian Standards (BIS) play a crucial role.

• The textile industry has welcomed the relaxation of the mandatory Quality Control Order (QCO) for polyester fibre, filament yarn and spun yarn imported under the advance authorisation scheme by EoUs (Export Oriented Units) and SEZ industries.
• Southern India Mills’ Association (SIMA) said the Ministry of Chemicals and Fertilizers (Department of Chemicals and Petrochemicals) issued QCO for polyester staple fibres, various filament yarns and spun yarn; mandating every user to purchase the products only from BIS licence holders in local and export markets.
• QCOs have been in place for the Textile sector since April 2021.
• Applications submitted by foreign firms for licences were pending before the BIS authorities impacting exporters.

Dig Deeper: Read about QCOs issued by various ministries.

• With growing instances of digital payment fraud, the Reserve Bank of India (RBI) has proposed establishing a Digital Payments Intelligence Platform for network-level intelligence and real-time data sharing across the digital payment ecosystem.
• To take this initiative forward a committee will be constituted to examine various aspects of setting up the Platform.
• The platform will leverage advanced technologies like AI and machine learning to identify and mitigate fraud risks.
• With the adoption of e-mandates for a recurring payment, transactions have been increasing, and the RBI has proposed to include payments, such as replenishment of balances in Fastag and National Common Mobility Card (NCMC) which are recurring in nature but without any fixed periodicity, in the e-mandate framework.
• To encourage wider adoption of UPI Lite, enabling quick small-value payments through an on-device wallet, the RBI has proposed to bring it under the e-mandate framework.

Dig Deeper: Read about the e-BAAT initiative of RBI.

• Mass fish kill was reported in the Periyar River in May between the 15 km stretch of Pathalam to Panampukad.
• Fishing And cage farming community sustained heavy losses due to the mass killing of Pearl spots, tilapia and cobia fish varieties.  
• Potential Reasons:
• The Kerala State Pollution Control Board reported that the sudden opening of the Pathalam shutters after heavy rains released organic waste, causing oxygen levels to drop and leading to the fish kill.
• The Department of Irrigation has dismissed claims and suspects the fish deaths were due to toxic effluents from Edayar’s industrial units.
• River watchers and activists blame industrial units for discharging untreated toxic wastewater into the river, causing fish deaths.
• A preliminary report by the Kerala University of Fisheries and Ocean Studies pointed to low oxygen levels and chemical pollutants in the water samples collected at the site of the fish death even as it expressed the suspicion that sulphur may have been released directly into the water.
• The university did not specify the origin of the chemicals either as organic or inorganic.  
• Steps taken by Government:
• A proposal is being considered to build a dyke wall or inspection walkway along Edayar’s industrial stretch to prevent illegal effluent discharge, with a detailed plan to be submitted for government approval.
• The government assured the establishment of a high-level committee to consider a River Monitoring Authority and protocols for sluice gate operations.
• Disheartened fish farmers are contemplating shifting to farm tourism due to these recurring problems, potentially marking the end of fish farming in the Periyar.

The Eloor-Edayar industrial area:

• It is home to 286 units, including 106 highly polluting ones, which remains a significant concern.
• Activists highlighted the government’s approval of a large fish processing plant despite ongoing pollution issues.
• Persistent pollution in the Periyar has led to frequent fish deaths, often gaining media attention only during major incidents.

Dig Deeper: Read about the endemic fish varieties of western ghat.

• The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 6.5%.
• The decision, taken at the MPC’s meeting, marks the eighth time in a row that the policy rate has been put on hold to keep the focus on battling high inflation.

MPC Observations

• According to the MPC, high-frequency indicators of domestic activity are showing resilience in 2024-25.
• The southwest monsoon is expected to be above normal, which augurs well for agriculture and rural demand, but headwinds from geopolitical tensions, volatility in international commodity prices, and geoeconomic fragmentation pose risks to the outlook.

• The MPC has revised its GDP growth forecast upwards from the earlier 7% estimate to 7.2% for the financial year 2024-2025.
• It has also decided to remain focused on the withdrawal of accommodation to ensure that inflation does not accelerate while supporting growth.
• These decisions align to achieve the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2% while supporting growth.
• Food inflation remains elevated due to the persistence of inflation pressures in vegetables, pulses, cereals, and spices.

MPC Observations

• According to the MPC, high-frequency indicators of domestic activity are showing resilience in 2024-25.
• The southwest monsoon is expected to be above normal, which augurs well for agriculture and rural demand, but headwinds from geopolitical tensions, volatility in international commodity prices, and geoeconomic fragmentation pose risks to the outlook.

Dig Deeper: Read about the difference between policy stances like expansion/accommodation, neutral and calibrated tightening.