Friday 28 April 2017

What is India's Twin Balance Sheet Problem and How to tackled ?

India's twin balance sheet problem is unique mix of over leveraged and distressed companies and one hand and rising NPAs in bank on the other. Twin balance sheet has held up investment and has decelerated India's growth wagon wheel.

Causes of twin balance sheet Problem


the Genesis of twin balance sheet can be found in the early 2000s when the Indian Economy was consistently growing at rate of 8 % the factor leading to rising bank NPA and over leveraged companies are 

  1. Bank lend aggressively when the market and Economy was in Good position.

  2.  Poor regulation and lack of period checks on the profitability and sustainability of the companies and their projects.

  3.  Project bid extremely low tariff with confidence to renew them later but which didn't happened.

  4. Project delayed due to lack of environmental clearance , growing cost of raw material.

  5. To resolve the delay in project , bank resorted to ever greening of loans .
















Step to be taken

  1. Loss recognition. 

  • The AQR was meant to force banks to recognise the true state of their balance sheets. But banks nonetheless continue to evergreen loans, as the substantial estimates of unrecognised stressed assets make clear.

    2. Coordination. 

  • The RBI has encouraged creditors to come together in Joint Lenders Forums, where decisions can be taken by 75 percent of creditors by value and 60 percent by number. But reaching agreement in these Forums has proved difficult, because different banks have different degrees of credit exposure, capital cushions, and incentives. For example, banks with relatively large exposures may be much more reluctant to accept losses. In some cases the firm’s losses aren’t even known, for they depend on the extent of government compensation for its own implementation shortfalls, such as delays in acquiring land or adjusting electricity tariffs. And deciding compensation is a difficult and time-consuming task; many cases are now with the judiciary. 

    3. Proper incentives. 

  • The S4A scheme recognises that large debt reductions will be needed to restore viability in many cases. But public sector bankers are reluctant to grant write-downs, because there are no rewards for doing so. To the contrary, there is an inherent threat of punishment, since major write-downs can attract the attention of investigative agencies. Accordingly, bankers have every incentive to simply reschedule loans, in orderto deferthe problems until a later date. To address this problem, the Bank Board Bureau (BBB) has created an Oversight Committee which can vet and certify write-down proposals. But it remains open whether it can change bankers’ incentives.

    4. Capital. 

  • The government has promised under the Indradhanush scheme to infuse Rs 70,000 crores of capital into the public sector banks by 2018-19. But this is far from sufficient, and inherently so, because there is a principal-agent problem, arising from the separation of the institution with financial responsibility (the government) from its decision-making agent (the state banks). If the government promises unduly large funds in advance, the banks may grant excessive debt reductions. But banks do not receive sufficient assurance of funding, they will not be able to grant companies enough debt relief.

Challenges


  1. difficult to dispose the Assets
  2. Market over capacity in some sector make more difficult to dispose i.e Steel
  3.  It will be very difficult to recover from service sector and intangible asset 
  4. Govt. and stake holder (bank) may have incur losses due to undervaluation of  assets.


Tuesday 18 April 2017

Layers of Earth's Atmosphere



Earth's atmosphere has a series of layers, each with its own specific traits. Moving upward from ground level, these layers are named the troposphere, stratosphere, mesosphere, thermosphere and exosphere. The exosphere gradually fades away into the realm of interplanetary space.

Troposphere

The troposphere is the lowest layer of our atmosphere. Starting at ground level, it extends upward to about 10 km (6.2 miles or about 33,000 feet) above sea level. We humans live in the troposphere, and nearly all weather occurs in this lowest layer. Most clouds appear here, mainly because 99% of the water vapor in the atmosphere is found in the troposphere. Air pressure drops, and temperatures get colder, as you climb higher in the troposphere.

Stratosphere

The next layer up is called the stratosphere. The stratosphere extends from the top of the troposphere to about 50 km (31 miles) above the ground. The infamous ozone layer is found within the stratosphere. Ozone molecules in this layer absorb high-energy ultraviolet (UV) light from the Sun, converting the UV energy into heat. Unlike the troposphere, the stratosphere actually gets warmer the higher you go! That trend of rising temperatures with altitude means that air in the stratosphere lacks the turbulence and updrafts of the troposphere beneath. Commercial passenger jets fly in the lower stratosphere, partly because this less-turbulent layer provides a smoother ride. The jet stream flows near the border between the troposphere and the stratosphere.

Mesosphere

Above the stratosphere is the mesosphere. It extends upward to a height of about 85 km (53 miles) above our planet. Most meteors burn up in the mesosphere. Unlike the stratosphere, temperatures once again grow colder as you rise up through the mesosphere. The coldest temperatures in Earth's atmosphere, about -90° C (-130° F), are found near the top of this layer. The air in the mesosphere is far too thin to breathe; air pressure at the bottom of the layer is well below 1% of the pressure at sea level, and continues dropping as you go higher.

Thermosphere

The layer of very rare air above the mesosphere is called the thermosphere. High-energy X-rays and UV radiation from the Sun are absorbed in the thermosphere, raising its temperature to hundreds or at times thousands of degrees. However, the air in this layer is so thin that it would feel freezing cold to us! In many ways, the thermosphere is more like outer space than a part of the atmosphere. Many satellites actually orbit Earth within the thermosphere! Variations in the amount of energy coming from the Sun exert a powerful influence on both the height of the top of this layer and the temperature within it. Because of this, the top of the thermosphere can be found anywhere between 500 and 1,000 km (311 to 621 miles) above the ground. Temperatures in the upper thermosphere can range from about 500° C (932° F) to 2,000° C (3,632° F) or higher. The aurora, the Northern Lights and Southern Lights, occur in the thermosphere.

Exosphere

Although some experts consider the thermosphere to be the uppermost layer of our atmosphere, others consider the exosphere to be the actual "final frontier" of Earth's gaseous envelope. As you might imagine, the "air" in the exosphere is very, very, very thin, making this layer even more space-like than the thermosphere. In fact, air in the exosphere is constantly - though very gradually - "leaking" out of Earth's atmosphere into outer space. There is no clear-cut upper boundary where the exosphere finally fades away into space. Different definitions place the top of the exosphere somewhere between 100,000 km (62,000 miles) and 190,000 km (120,000 miles) above the surface of Earth. The latter value is about halfway to the Moon!

Ionosphere

The ionosphere is not a distinct layer like the others mentioned above. Instead, the ionosphere is a series of regions in parts of the mesosphere and thermosphere where high-energy radiation from the Sun has knocked electrons loose from their parent atoms and molecules. The electrically charged atoms and molecules that are formed in this way are called ions, giving the ionosphere its name and endowing this region with some special properties.

Source 

http://ete.cet.edu -image of layers of the earth

https://scied.ucar.edu/atmosphere-layers

Sunday 16 April 2017

Paika Rebellion 1817, Important for UPSC 2017

On April 16, 2017, Prime Minister Narendra Modi honoured in Bhubaneswar descendants of 16 families associated with what is known as the Paika rebellion of 1817. Here’s an explainer about the little-known but bloody rebellion of Odisha against British colonialism.


What is Paika rebellion?

Nearly about 200 years back in 1817, the fire of freedom struggle was enkindled at Khurda. The rebellion broke out in March, 1817 when nearly 400 Kandhas of Ghumusar in Ganjam marched towards Khurda protesting against the British while the Paikas, Daleis and Dalbeheras of Khurda joined them immediately.
The rebels under the leadership of military chief of King of Khurda Buxi Jagabandhu Bidyadhar Mahapatra burnt many Government buildings forcing the officials to flee. A British Commander was killed during a fight at Gangpada. Khurda King Mukund Dev (II) joined the Paikas to revolt against the British rule and went to Pipili and Puri to capture these two places. As the rebellion was widespread, it was beyond the power of the British authorities to control it. So martial law was proclaimed in Khurda. Despite this, the rebellion spread like wildfire to Gop, Tiran, Kanika and Kujang but it was quelled down. Buxi Jagabandhu tried to stir up the insurrection in the Baleswar district as he was in touch with the Bhonsle king of Nagpur but all proved abortive.
Though the rebellion lasted only for a year and a half, but it was completely stamped out in September 1818. All the same, it remained as a torchbearer for the anti-colonial movements in Odisha as well as for the entire nation.
Ten years after this great rebellion, another broke out at Tapanga near Khurda under the leadership of Madhab Chandra Routray known as Tapang Dalbehera. Fighting against the powerful enemy, it was not expected that Routray would achieve success. Nevertheless, the people of Tapanga fought heroically but were defeated. Tapang or for that matter the whole of Khurda came under the British rule.
The Paika revolt started after the British started experimenting with the stiff revenue system after 1803, which created hardship for the farmers of Odisha. The resurgence of the valiant Odia Paikas (militia caste) raised hopes and aspirations of the peoples.
In the annals of martial tradition of Odisha and its resurgence, chivalrous Odia heroes who revolted against the British are to be ever remembered and honoured for their sacrifice and for the cause of freedom of the people.
In 1804, the sacrifice of the Dewan of Khurda Jayakrushna Rajaguru Mohapatra popularly known as Jayee Rajaguru who was publicly hanged can’t be undermined. The really tragic and brave episode in the history is of Krutibas Patsani with Panchu Nayak in Banapur rebellion. They declared country’s independence in 1836 and then faced the death bravely. Similarly, we can’t forget the heroic deeds of Pindiki Bahubalendra of Darutheng and Krushna Chandra Bhramarbar Ray of Kuradhmalla.
The history of Khurda is remarkable for its glorious past of freedom movement, rich cultural heritage, political greatness, religious movement and economic prosperity through all its ages. Khurda had constituted the core area of ancient and medieval frame and once was the capital of ancient Odisha.
It was the last free kingdom of India. This is history but such heroic history is not truly represented in our books and records. Before 41 years of Sepoy Mutiny in 1857, Paika Mutiny occurred in 1817 and that was the first freedom struggle before Independence. This is our glorious history, but such history wasn’t glorified till date.
Truth is truth and truth must prevail, but such thing wasn’t recorded officially or nationally in the history of freedom movement.
Now there is ample opportunity for Odias to showcase this and demand that Paika Mutiny must get justice on the history of record. As on 2017, it would be two hundred years of Paika Mutiny. Hence, before that, the history should be corrected. The Odias should fight united for it.

Source - The Hindu and Daily Pioneer
Download as PDF - Paika Rebellion 1817 

Saturday 8 April 2017

Diamond is no more hardest substance , Q -Carbon find the Place

A new phase of carbon has been discovered, dubbed Q-carbon by its creators at North Carolina State University, and it has a number of incredible new properties. Not only does it appear to be harder than its close carbonaceous cousin, diamond, but it actually has properties the scientists themselves did not think possible. Q-carbon is ferromagnetic, something no other phase of carbon is known to be, and it even glows when exposed to energy. But, exciting as these things are, the most proximate application for Q-carbon is in back-conversion to more natural carbon crystals: With a simple melting process, Q-carbon can be turned to diamond under forgiving conditions.


One interesting thing about Q-carbon is that it’s so new, its own discoverers don’t make too many claims about exactly what it is on a chemical level. They make it by putting down layers of “amorphous carbon,” or unordered carbon molecules, onto a substrate like sapphire or glass. By laser-blasting these layers to above 4000K at atmospheric pressure, they can cause the whole thing to enter a molten state — and exactly how they allow this state to end and cool determines what they get at the end. Their studies went toward creating Q-carbon, which they say has mostly four-way carbon bonds, like those in diamond, but also a fair number of three-way bonds.








They found such unexpected properties quickly enough. Though it would not even thought to be possible, it seems that in its Q-form, carbon can be ferromagnetic. It’s not like a super-magnet or anything, but the bare fact that this substance can react that way to an applied magnetic field is fascinating to materials scientists. And, of course, there’s the fact that Q-carbons seems to glow when exposed to even a small amount of energy.

“Too soft!” said the researchers.
Their technique can lay down layers of Q-carbon between 20 and 500 nanometers thick. These layers exhibit hardness well in excess of diamond layers, by as much as 60% if the researchers are correct. They suggest that this could be due to the shorter average carbon-carbon bond lengths in Q-carbon.


Depending on just how the Q-carbon is made, it can end up with embedded nano-diamonds, or diamond nano-needles, which are basically just areas of the Q-carbon which did fuse into the perfect diamond lattice structure. But they can also intentionally back-convert the Q-carbon to diamond nanodots, though the exact properties of that diamond aren’t detailed. It’s likely they’re going to be able to be made into gemstone quality, but the industrial diamond market is still enormous.



This isn’t the first time that the materials industry has claimed to have beaten diamond in one way or another. What sets this apart is the ease of the production process, and the fact that while Q-carbon is new and largely unknown, it can be converted to diamond, which is extremely well understood. We don’t know what uses scientists might find for this new phase of carbon, but since it can be created without the need for extreme conditions, there is at least a wide variety of researchers who are in a position to be able to find out.

Wednesday 5 April 2017

Tree-dwelling crab species found in Kerala Kani maranjadu are long-legged


Author: Press Trust of India Thiruvananthapuram
Source -The Hindu

Scientists have discovered a new species of long-legged, tree-dwelling crabs in Western Ghats of Kerala. 

The new species named Kani maranjandu, after the Kani tribe in Kerala, are substantially different from other congeners 



First of its kind 

The characteristic traits of the crab include the structure of its hard upper shell, its male abdominal structure and reproductive parts and diagnostic elongated walking legs, which no other genus has, said researchers from the University of Kerala. This is the first report of its kind to offer a record of an arboreal crab. The survey of the freshwater crab fauna started in 2014 in the Westerns Ghats in Kerala. People from the Kani tribe reported sightings of a ‘long-legged’ tree crabs. 

“As water-holding hollows in large trees are essential for the survival of this unique species, the discovery also stress the need for conservation of large trees in the degraded forest ecosystems of the Western Ghats,” said Biju Kumar of the university. After a year, researchers were finally able to capture a female specimen, and later a large adult male. 

Actual biodiversity 

“It also highlights how little we know about the actual biodiversity that resides in these forests and the efforts that must still be made to find and study the many undoubted new species that still live there,” Mr. Kumar said. 

The findings were published in The Journal of Crustacean Biology. 

The crab species has been named after the Kani tribe in Kerala.