Why is it in the News?

PM Modi recently inaugurated the Sudarshan Setu, a four-lane cable-stayed bridge connecting Okha to Beyt Dwarka island in Gujarat.

About the Sudarshan Setu:

• 'Sudarshan Setu' is the country's longest cable-stayed bridge 2.32 km on the Arabian Sea connecting Beyt Dwarka island to mainland Okha in Gujarat's Devbhumi Dwarka district.
• It boasts a unique design, featuring a footpath adorned with verses from the Bhagavad Gita and images of Lord Krishna on both sides.
• It also has solar panels installed on the upper portions of the footpath, generating one megawatt of electricity.
• The 2.32 km bridge, including 900 metres of a central double-span cable-stayed portion and a 2.45 km long approach road, has been constructed at a cost of Rs 979 crore.

About Beyt Dwarka:

• Bet/Beyt (pronounced ‘Bait’ Dwarka also known as Shankhodara, is an island located near the shores of Okha which is situated around 30 km from Dwarka, in the Gulf of Kutch.
• It said that Lord Krishna resided here while Dwarka was his constitutional seat.

History:

• Bet Dwarka derived its name from the word ‘bet’ which translates to ‘gift’ and is believed that Lord Krishna received it from his friend Sudama.
• In the ancient epic, Mahabharata, Bet Dwarka is known by the name of ‘Antardvipa’ to which people of the Yadava clan needed to travel by boat.
• Explorations and excavations carried out under the sea have revealed the presence of settlements whose age can be traced back to the era of the Harappan civilisation and that of the Mauryan rule.
• In the later years, the region was under the administration of the Gaekwad clan of the state of Baroda.
• During the revolt of 1857, Vaghers attacked the region and captured it, but had to concede defeat in two years and return the region back to the Gaekwads.

Why is it in the News?

Fresh measures to curb unauthorised online lending apps’ operations could be on the anvil, following deliberations on the issue at the Financial Stability and Development Council (FSDC) chaired by Finance Minister Nirmala Sitharaman recently.

About the Financial Stability and Development Council (FSDC):

• The Financial Stability and Development Council (FSDC) is a high-level body established by the Government of India in 2010 to address macroeconomic and financial stability issues.
• Although not a statutory body, it operates under the Financial Stability Division of the Department of Economic Affairs within the Ministry of Finance.

Background:

• In response to the global financial crisis of 2008, recommendations were made by the Raghuram Rajan Committee for the creation of a centralised regulatory body to oversee India's financial system.
• The establishment of FSDC reflects India's proactive approach to enhance preparedness for future financial challenges.

Composition:

• Chaired by the Union Finance Minister, the council comprises key stakeholders including the Governor of the Reserve Bank of India (RBI), finance and economic affairs officials, regulatory body chairpersons, and other relevant authorities.
• The Secretary of the Department of Economic Affairs serves as the council's secretary.

Responsibilities:

• FSDC is entrusted with the task of promoting financial stability, coordinating policy responses to systemic risks, and fostering the development of India's financial sector.

Concerns and Future Directions:

• Concerns have been raised about potential encroachment on the autonomy of sectoral regulators due to FSDC's leadership by the Union Finance Minister.
• To address this, it's crucial to safeguard the independence of regulatory bodies and establish clear guidelines to ensure effective coordination without undermining regulatory authority.

What is Digital Lending?

• Digital lending refers to the process of accessing credit online, facilitated through web platforms or mobile applications.
• This approach leverages technology across various stages of the lending process, including customer acquisition, credit assessment, approval, fund disbursement, recovery, and customer service.

Key Features:

• Utilises technology for end-to-end lending operations, enhancing efficiency and accessibility.
• Offers flexibility in credit options and facilitates swift transactions, appealing to modern borrowers.
• Prominent examples include Buy Now, Pay Later (BNPL) schemes, which provide short-term financing for purchases, allowing consumers to defer immediate payments.

Drivers of Growth:

• Increased adoption is driven by widespread smartphone usage and the convenience of online transactions.
• Flexibility in credit offerings and simplified application processes contribute to the popularity of digital lending platforms.
• BNPL services, in particular, cater to consumers seeking deferred payment options for purchases and services.

Why is it in the News?

The Cabinet Committee on Economic Affairs recently approved ?340/quintal as the Fair and Remunerative Price (FRP) of sugarcane for the sugar season 2024-25 at a sugar recovery rate of 10.25%.

What is the Fair and Remunerative Price (FRP)?

• FRP was introduced by the government in 2009 by an amendment to the Sugarcane (Control) Order, 1966.
• It replaced the Statutory Minimum Price (SMP) on the Commission for Agricultural Costs and Prices (CACP) consultation.
• The FRP system assured timely payment to farmers, irrespective of the profit and loss to sugar mills.
  • Further, the new system made it mandatory for sugar mills to pay the farmers within 14 days of delivery of sugarcane.
• Additionally, the FRP system introduced grading on the basis of sugar recovery rate from sugarcane wherein a premium was paid to the farmer on higher recovery and a reduction in rates on lower recovery.
• The FRP is based on the Rangarajan Committee report on reorganising the sugarcane industry.

Factors Considered for Announcing FRP:

• • Cost of production of sugarcane
  • Return to the growers from alternative crops and the general trend of prices of agricultural commodities
  • Availability of sugar to consumers at a fair price
  • The price at which sugar produced from sugarcane is sold by sugar producers
  • Recovery of sugar from sugarcane
  • The realisation made from the sale of by-products viz. molasses, bagasse and press mud or their imputed value
  • Reasonable margins for the growers of sugarcane on account of risk and profits

Effect of the New FRP:

• Sugar production in India was hit hard in the October-December 2023 quarter as production fell by 11.21 million metric tonnes;
  • It was 12 million in the same quarter the previous year.
  • The increase in FRP is going to increase the cost for producers.
• The increased FRP will benefit over five crore sugarcane farmers in the country, however, the increase in production cost could affect end-consumers as well.
• Factors such as FRP hikes, akin to MSP, make it attractive to farmers but also increase prices in the local market as mills pass on that cost to consumers