Content

1. INFRASTRUCTURE .......................................................................................01-12
 National Highways ............................................................................................................ 01
 National Railways ............................................................................................................. 02
 National Waterways .......................................................................................................... 03
 Airports ............................................................................................................................... 03
 Infrastructure push at LAC................................................................................................ 04
 PM Gati Shakti NMP.......................................................................................................... 05
 India Infrastructure Report 2023 ..................................................................................... 06
 World’s first CNG terminal at Bhavnagar, Gujarat ......................................................... 07
 India’s first National Centre of Excellence for Green Port & Shipping (NCoEGPS) ... 08
 Central Economic Zone under Sagarmala Scheme ........................................................ 09
 Tajpur, Bengal’s 1st deep sea port ................................................................................... 09
 PM inaugurates ‘Vanijya Bhawan’ and launches NIRYAT portal .................................. 10
 India plans to export solar power.................................................................................... 11

2. INVESTMENT .............................................................................................. 13-23

 Government’s disinvestment target for 2022-23 ........................................................... 13
 Blue Bonds .......................................................................................................................... 14
 Sovereign Green Bonds ..................................................................................................... 14
 Investment in Capital Markets through P-Notes dropped ........................................... 15
 Alternative Investment Fund (AIF) .................................................................................. 16
 SWAMIH investment fund ................................................................................................ 17
 Hybrid Securities ............................................................................................................... 18
 Surety Bond Insurance ...................................................................................................... 18
 Indians go West, take up ‘residence by investment’ ..................................................... 19
 ALTERRA: UAE Commits $30bn to Climate-Focused Investment Vehicle.................... 20
 BSE launches electronic gold receipts ............................................................................. 20
 Mutual Funds re-open overseas investment funds ....................................................... 21
 THEMATIC CURRENT AFFAIRS
UPSC CSE Prelims exam requires a candidate to link and interlink
Current Affairs with the syllabus and the static concepts.

It’s important to note that simply compiling current affairs won’t suffice;
it’s crucial to learn how to utilize and link them effectively.

To aid in this process, we have categorized the entire UPSC prelims

syllabus into actionable and easy-to-understand themes, and current
affairs have been blended into these themes.

Thematic Current Affairs will help you in:

 Division of entire syllabus- theme wise

 Revision of concepts and current affairs together
 developing the skill to interlink theory and contemporary
developments
 Concise and precise information for quick coverage

Join our Telegram Channel for Peer to Peer Discussion

Prelims Sampoorna 2024 UPSC CSE Current Affairs

 1
Infrastructure

1. NATIONAL HIGHWAYS

CONTEXT
India has made a headway in building national highways in a big way connecting all passenger, trade
and freight points. About 13,800 km of highways construction is envisaged with an outlay of Rs 2.81
lakh crore in 2023-24 alone, up 33% from a year ago.

Key-highlights
 India boasts of the world’s second-largest road network, with over 6.37 million kilometres.
 Length: The total length of highways has expanded from 97,830 kilometres in 2014 to 145,155
kilometres today.
 Budget allocation: The government’s budget support for road infrastructure has rapidly increased,
reaching approximately ₹1.4 lakh crore in FY22-23.
 Strategic projects: Bharatmala Pariyojana, Narmada Valley Development Project, Atal Tunnel, the
Dhola-Sadiya Bridge, and the Chenab River Bridge, Delhi Metro Industrial Corridor, Mumbai Trans
Harbour Link, Inland WaterWays Development Project, Navi Mumbai International Project and Zoji-
la and Z-Morh Tunnel Project.

Chenab River Railway Bridge

 To connect Kashmir Valley with the rest of India, the Udhampur-Srinagar-Baramulla Rail Link
project includes the 1.3 km long Chenab River Railway Bridge.
 The bridge is a joint venture between three engineering firms, namely Afcons Infrastructure (India),
VSL India, and Ultra Construction and Engineering Company from South Korea.

Zoji-la & Z-Morh Tunnel Project

 The Zoji-la & Z-Morh tunnels are located on the Leh-Srinagar highway.

1 Infrastructure & Investment

  These are two important tunnels that are built in two-lane, bi-directional, single-tube tunnels and
they will provide all-weather access to the road and reduce the time between Ladakh and Kashmir
to 15 minutes which at present is 3 hours.
 The construction will be over by 2025 and will help in reducing the time between the Union
Territories.
 It is implemented on an EPC contract basis by the operator National Highway and Infrastructure
Development Corporation Limited (NHIDCL).

2. NATIONAL RAILWAYS

CONTEXT
India’s railways have undergone substantial modernization and expansion.

Key-highlights
 Budget allocation: Capital expenditure on railway infrastructure has steadily increased over the past
four years, with a budget of ₹2.5 lakh crore allocated in FY22-23, representing a 29% rise compared
to the previous year.
 Electrification of railway tracks has witnessed significant progress, reaching 37,011 route kilometres in
the last nine years.
 Further, in 2022, the successful trial of KAVACH, a state-of-the-art electronic system designed to
help the Indian Railways achieve Zero Accidents was conducted.
 The introduction of the indigenously designed Vande Bharat Express, which are already functional
in 25 routes, and its subsequent expansion showcases India’s commitment to high-speed rail travel.
 The ongoing construction of a high-speed line between Mumbai and Ahmedabad, with Japanese
collaboration, and the development of new freight corridors will further boost connectivity, reduce
travel time, and facilitate the efficient movement of goods and passengers.

About KAVACH
 The KAVACH is an indigenously developed Automatic Train Protection (ATP) system by the
Research Design and Standards Organisation (RDSO) in collaboration with the Indian industry.
 The trials were facilitated by the South Central Railway to achieve safety in train operations
across Indian Railways.
 It is a state-of-the-art electronic system with Safety Integrity Level-4 (SIL-4) standards.
 It is meant to provide protection by preventing trains to pass the signal at Red (which marks
danger) and avoid collision.
 It activates the train’s braking system automatically if the driver fails to control the train as per
speed restrictions.

Infrastructure & Investment 2

  In addition, it prevents the collision between two locomotives equipped with functional Kavach
systems. The system also relays SoS messages during emergency situations.

SoS means, a call or request for help or rescue

 An added feature is the centralised live monitoring of train movements through the Network
Monitor System.
 ‘Kavach’ is one of the cheapest, SIL-4 certified technologies where the probability of error is 1
in 10,000 years.

3. NATIONAL WATERWAYS

CONTEXT
India recognizes the immense potential of its waterways in establishing a sustainable logistics sector.

Key-highlights
 The government’s focus on inland water transport has led to the declaration of 111 National
Waterways.
 The cargo movement on these waterways reached a record high of 108.8 million tons in FY22,
reflecting a growth of 30.1% compared to the previous year.
 The Inland Vessels Bill 2021 further facilitates the growth of inland water transport, creating a robust
multi-modal transport ecosystem and fostering ease of doing business.
 Additionally, the Sagarmala Project aims to develop ports, streamline compliances, and reduce vessel
turnaround time.
 Ports: There are 12 major ports and over 200 non-major ports in the country, along the 7,500-km
long coastline. Vadhavan Port in Maharashtra, which is under construction, would be the 13th major
port in India.

4. AIRPORTS

CONTEXT
India’s aviation sector has experienced substantial growth, positioning the country as the world’s
third-largest market.

Key-highlights
 To promote regional connectivity and revive unserved or underserved airports, the government has
allocated a budget of ₹4,500 crores under the Ude Desh ka Aam Nagarik (UDAN) scheme.

3 Infrastructure & Investment

  The number of airports with civilian flights has doubled in the last nine years, from 74 in 2014 to
148 in 2023.

 Additionally, the government has also accorded ‘in-principle’ approval for setting up 21 greenfield
airports across the country.

 Further, the upcoming greenfield Noida International Airport will also be the country’s largest
centre for aircraft maintenance, repair and operation (MRO), bolstering the aviation sector and
generating employment opportunities.

 As many as 131 airports are in operation in India, of which 29 are international, 92 are domestic, and
10 Custom airports, while the government has granted in-principle approvals to 21 more greenfield
airports in June 2023.

About Regional Connectivity Scheme – UDAN:

 The Regional Connectivity Scheme (RCS)-UDAN (Ude Desh Ka Aam Naagrik) is a regional
connectivity scheme launched by the Government of India, as a part of the National Civil Aviation
Policy in 2016.
 The scheme has recently celebrated its fifth anniversary.
 It aims to operation for a period of 10 years (2016-26), envisages providing connectivity to un-
served and underserved airports through revival of existing airports and air strips.
 Objective: To take flying to the masses by improving air connectivity for tier-2 and tier-3
cities and subsidising air travel on these routes.
 The routes are awarded after a bidding process, and the winning airlines are given certain
incentives, along with viability gap funding (or a subsidy) equivalent to 50% of the seating
capacity on their aircraft.
 In return, the airlines sell 50% of their seats at a flat rate of 2, 500 per hour of flight, in order
to make air travel affordable.
 Airport Authority of India (AAI) is the implementing agency for the scheme.

5. INFRASTRUCTURE PUSH AT LAC

CONTEXT
Robust infrastructure in border areas is a strategic asset for any country, and India understands this
well. All along the Line of Actual Control (LAC), India has ramped up infrastructure development in
an unprecedented way.

Key-highlights
 In just the past two years, 205 projects have been completed along the LAC.

Infrastructure & Investment 4

 The government has increased the budget for the Border Roads Organisation (BRO) by a whopping
100 per cent.

 India inaugurated nearly 90 infrastructure projects (64 are in Arunachal Pradesh, Ladakh and Sikkim)
along the Line of Actual Control (LAC) with China, which includes the
 Nyoma Advanced Landing Ground in Eastern Ladakh (set to become the highest airfield in the
world)
 Nechiphu Tunnel in Arunachal Pradesh.
 Shinku La tunnel on the Ladakh-HP border (once completed, it will be the world’s highest)
 Se La tunnel
 Devak Bridge on the Bishnah-Kaulpur-Phulpur Road in J&K’s Samba district.
 Bagdogra and Barrackpore airfields in West Bengal.

The LAC is the de facto border between India and China; it is distinct from the de jure legal boundaries
that are not agreed upon.

6. PM GATI SHAKTI NMP

CONTEXT
The Central Government has launched Gati Shakti programme with a vision to bring under one
umbrella, all the major mobility infrastructure projects of various ministries and state governments.

What is PM Gati Shakti NMP?

 The PM Gati Shakti NMP was launched in October 2021.

 Objective: Holistic integration of various ministries and to address the gaps to ensure infrastructure
for seamless movement of people, goods and services.

 The PM Gati Shakti National Master Plan is driven by seven engines - roads, railways, airports,
ports, mass transport, waterways, and logistics infrastructure.

 Composition: The NPG is composed of representatives from various connectivity infrastructure

ministries and departments.

 These representatives include the heads of the network planning division, and their purpose is to
ensure unified planning and integration of the proposals

 Development this fiscal: As of this fiscal year, a total of 85 major infrastructure projects worth
Rs 5.4 lakh crore from various ministries have been recommended for approval under the initiative.
 All logistics and connectivity infrastructure projects requiring investments of over Rs 500 crore are
directed through the NPG.

5 Infrastructure & Investment

 7. INDIA INFRASTRUCTURE REPORT 2023

CONTEXT
The India Infrastructure Report 2023 on Urban Planning and Development was released recently.

About IIR 2023

 The India Infrastructure Report (IIR) 2023 is a collaborative effort of the IDFC Foundation,
Infrastructure Development Corporation (Karnataka) Ltd. (iDeCK) and the National Institute
of Urban Affairs (NIUA).
 This annual publication has been instrumental in identifying and analyzing legal, fiscal, regulatory,
technological, social, and conceptual aspects related to contemporary themes relevant to
infrastructure development.
 This makes it an invaluable resource for those involved in formulating urban policy, as well as for
those interested in the development of India’s infrastructure and urbanization, such as policy makers,
investors, academics, financiers, and multilateral agencies.

Key Highlights of the India Infrastructure Report 2023:

 Spotlight on the transformative potential of digital technology in shaping the urban landscape
of India. Focus areas include the concept of ‘smart cities’ and the significance of performance ranking
criteria.
 Examination of financial dimensions of urban development, with a special emphasis on public-
private partnerships (PPPs), the financial sustainability of urban local bodies, and the efficacy of
municipal bonds as potent financing instruments.
 Urban transportation planning and urban redevelopment as pivotal components of effective
urban governance through transit-oriented development, efficient urban goods movement, and
floor space and land price regulation in India.

IDFC
 IDFC Foundation is a not-for-profit institution, working on philanthropic initiatives in social
infrastructure.
 As part of its development agenda, IDFC Foundation also carries out focussed research, policy
advocacy and capacity building across the spectrum of infrastructure sectors.
 It has, in the past, brought out various publications and research papers, which provide the
platform for ushering in fresh perspectives and frameworks for infrastructure development in the
Indian context.

About iDeCK
 IDeCK, established in 2000 as a joint venture of the Government of Karnataka, IDFC Foundation
and HDFC.

Infrastructure & Investment 6

  iDeCK focusses on catalysing well-planned, sustainable infrastructure projects, especially through
public-private participation.
 From its inception, iDeCK has accumulated a rich and diverse experience across infrastructure
sectors through its active engagement in the development of over 800 projects in the country
and abroad.
 The IDFC Foundation and the ICAP Trust, have been utilizing the expertise resident within iDeCK
in pursuit of research and capacity building activities.

About NIUA
 Established in 1976, the National Institute of Urban Affairs (NIUA) is an autonomous body
under the Ministry of Housing and Urban Affairs, Government of India.
 The Institute has been at the forefront of reshaping India’s urban narrative through its commitment
to cutting-edge research, advocacy, capacity building and knowledge dissemination.
 It is instrumental in bridging the gap between research and practice on issues related to urbanization
and suggesting ways to address urban challenges in the country.

8. WORLD’S FIRST CNG TERMINAL AT

BHAVNAGAR, GUJARAT

CONTEXT
Prime Minister Narendra Modi laid the foundation stone for the “world’s first CNG (Compressed
Natural Gas) terminal” at Bhavnagar in Gujarat recently.

About the Project:

 This is a three-year-old project that is expected to infuse Rs 4,000 crore into developing the existing
port infrastructure at Bhavnagar.
 The idea for the project materialized during the January 2019 Vibrant Gujarat summit when
a consortium of London-based Foresight Group, Mumbai-based Padmanabh Mafatlal Group,
and Rotterdam-based Boskalis signed a Memorandum of Understanding (MoU) with Gujarat
Maritime Board (GMB) for development of the CNG terminal.
 The consortium will invest in developing the north side of the Bhavnagar port under the BOOT (Build,
Own, Operate and Transfer) policy of the state government, and state-run GMB will continue to
operate the berths on the south side of the port.
 Why Bhavnagar port? The port is in close vicinity to the Dholera Special Investment Region (SIR)
and is expected to serve the industries that set up base in the region.
 It is already connected to the northern hinterland through a railway line that extends to the
existing berths at the port.

7 Infrastructure & Investment

 It is expected to be made operational by 2026. The proposed port terminal’s capacity is 4.65 Million
Tonnes Per Annum (MTPA), of which the capacity of the CNG terminal will be 0.3 MTPA.

About CNG:
 CNG, also known as compressed natural gas, is an eco-friendly alternative to gasoline.

 Made by compressing natural gas (methane) down to less than 1% of its volume, CNG fuel is
safer than gasoline and diesel because it is non-toxic and does not contaminate groundwater.

 This natural gas is the same gas that you use daily to heat your home and water, cook on the
stove, and even to dry your clothes in a dryer.

 The use of CNG fuel is becoming more popular with both commercial and non-commercial
vehicles.

9. INDIA’S FIRST NATIONAL CENTRE OF

EXCELLENCE FOR GREEN PORT & SHIPPING
(NCOEGPS)

CONTEXT
The Union Minister of Ports, Shipping & Waterways (MoPSW) launched the India’s first Centre of
Excellence for Green Port & Shipping to provide Green solutions to transform Ports & Shipping sector
in India.

About NCoEGPS
 Aim: To develop a regulatory framework and alternate technology adoption road map for Green
Shipping to foster carbon neutrality and circular economy (CE) in shipping sector in India.

Circular Economy: A circular economy is a model of production and consumption, which

involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and
products as long as possible.

 NCoEGPS will act as a technological arm of MoPSW for providing the needed support on Policy,
Research and Cooperation on Green Shipping areas for Ports, DG Shipping, Corporate Social
Lendings and other institutions.

 The Center will be a host of several technological arms to support the port and shipping sector and
will provide solutions to a variety of problems being faced in the industry through scientific research.

 It will also carry out valuable education, applied research and technology transfer in maritime
transportation at the local, regional, national and International levels.

Infrastructure & Investment 8

 It will focus on the following areas:
 Energy Management - Energy management tools, waste energy recovery systems
 Emission Management- Alternate, clean Energy/Fuel, emission control & monitoring.
 Sustainable Maritime Operations – novel technologies and approaches

10. CENTRAL ECONOMIC ZONE UNDER

SAGARMALA SCHEME

CONTEXT
Under the National Perspective Plan of the Sagarmala Programme, fourteen Coastal economic
Zones (CEZs) were envisaged including three in the state of Tamil Nadu.

About Sagarmala Programme:

 The Sagarmala Programme is a huge project taken up by the Indian government to improve the
country’s logistic sector.

 This Pariyojana falls under the governance of the Ministry of Shipping of India.

 Covering India’s longest coastline of 7,517 km, waterways of 14,500 km, and global maritime trade
pathways, the Sagarmala Project aims to promote industrial port-led development in the country.

11. TAJPUR, BENGAL’S 1ST DEEP SEA PORT

CONTEXT
To be developed by Adani Group, the port will be built on unused land with no need to demolish, or
remodel existing structures, making it the state’s 1st Greenfield port in close to 50 years.

Details:
 Tajpur will be the second-biggest port in West Bengal, after the Kolkata Port — now known as the
Shyama Prasad Mukherjee Port (SMP).

 Tajpur Port is located near Tajpur in West Bengal’s Purba Medinipur district, some 200 km from
Kolkata.

 It will enable a large ‘Capesize’, which is the largest class of cargo vessels. Previously the shallow
draft has constrained larger ships to call on ports in the state.

 It will be Bengal’s first Greenfield port in close to half a century.

 A Greenfield project is one in which construction happens on unused land, where there is no need
to remodel or demolish an existing structure.

9 Infrastructure & Investment

 Deep Sea Ports
 A deep-sea port is usually made up for the usage of very large and heavily loaded ships.
 The depth of water helps get them access to the deep-water ports.
 The deep-sea port is compatible with large heavy loaded ships which may require the water to
be 30 feet deep or even more.

12. PM INAUGURATES ‘VANIJYA BHAWAN’ AND

LAUNCHES NIRYAT PORTAL

CONTEXT
The Prime Minister recently inaugurated ‘Vanijya Bhawan’ and launched the ‘NIRYAT portal’.

Vanijya Bhawan
 Vanijya Bhawan is designed as a smart building that
incorporates the principles of sustainable architecture with
a special focus on energy saving.

 It is constructed near the India Gate.

 Vanijya Bhawan will secure as an integrated and modern

office complex that will be used by the two departments
under the Ministry i.e.
 Department of Commerce
 Department for Promotion of Industry and Internal Trade
(DPIIT)

NIRYAT Portal
 NIRYAT - National Import-Export for Yearly Analysis of Trade
portal aims to help in breaking silos by providing real time data
to all stakeholders.

 From this portal, important information related to more than 30

commodity groups exported to more than 200 countries of the
world will be available.

 In the coming time, information related to district-wise exports

will also be available on this. This will also strengthen the efforts
to develop the districts as important centres of exports.

Infrastructure & Investment 10

 13. INDIA PLANS TO EXPORT SOLAR POWER

CONTEXT
Indian industry will be able to manufacture solar modules worth 100 gigawatts (GW) annually, and
help the country be a net exporter of solar power by 2026.

Key-highlights:
 India was to have installed 175 GW of renewable energy — from solar, wind, biomass and small
hydropower sources — by December 2022 but has only installed 122 GW.
 Of this, solar power was to have been 100 GW though only 62 GW has been installed. A key
bottleneck has been the cost of solar modules (or panels).
 India has traditionally relied on China-made components such as poly-silicon wafers, necessary
to make modules; higher customs duty on them has shrunk supply.
 The country uses only 30-40 GW for domestic purposes annually and the rest can be used for export.
 The incentive schemes that are in place are designed to encourage the manufacturers of wafers.
 There has never been polysilicone manufacturing in India and this is the first time we’ll be making
ingots and wafers in India. This is necessary for the future health of the solar ecosystem in India.

PM KUSUM Scheme
 Pradhan Mantri Kisan Urja Surakshaevam Uttham Mahabhiyan (PM KUSUM) scheme, which
aims to help farmers access reliable day-time solar power for irrigation, reduce power subsidies,
and thereby decarboniser agriculture, was behind schedule because of the “high cost of finance” for
farmers.

Other Government Initiatives for Solar Energy

 Solar Park Scheme
 Rooftop Solar Scheme
 Atal Jyoti Yojana (AJAY)
 National Solar Mission
 SRISTI Scheme
 International Solar Alliance (ISA)

 Under the scheme, Rs 34,422 crore is to be spent by the Centre to have farmers or farmer groups
install solar power plants worth 10,000 MW, installation of 20 lakh solar-powered agriculture pumps
that aren’t connected to the grid (off-grid), and converting 15 lakh agriculture pumps that are already
connected to the grid into solar-powered pumps.
 As of December 31, 2022 only 88.46 MW of solar capacity had been added, 181,058 solar pumps had
been installed, and 1,174 grid-connected pumps had been converted.
 The deadline for the scheme has been shifted to 2026.



11 Infrastructure & Investment

Infrastructure & Investment 12
 2
Investment
1. GOVERNMENT’S DISINVESTMENT TARGET FOR
2022-23

CONTEXT
The Centre has not met the disinvestment target for 2022-23 so far, having realised Rs 31,106 crore
to date, of which, Rs 20,516 crore or close to a third of the budgeted estimate came from the IPO of
3.5% of its shares in the Life Insurance Corporation (LIC).

About Disinvestment
 Divestment is when the government sells its assets or a subsidiary, such as a Central or State public
sector enterprise.
 Three main approaches to disinvestment are:
 Minority disinvestment: The government retains a majority in the company, typically greater
than 51%, thus ensuring management control.
 Majority disinvestment: The government hands over control to the acquiring entity but retains
some stake whereas in complete privatisation.
 Complete privatisation: 100% control of the company is passed on to the buyer.

There is a separate department for undertaking disinvestment-related procedures called

the Department of Investment and Public Asset Management (DIPAM).

Disinvestment vs. Strategic Disinvestment

Disinvestment Strategic disinvestment
 If the government is selling  But if the government is selling majority shares (50% or
minority shares in a PSE (less more) of PSE to some other entity (mostly to a private sector
than 50%), it will continue to entity), then this method is called strategic disinvestment or
be the owner of the PSE. strategic sale).
 This is a normal disinvestment  Unlike simple disinvestment, strategic sale implies some
procedure. sort of privatization, along with the transfer of management
control.

13 Infrastructure & Investment

 2. BLUE BONDS

CONTEXT
The Securities and Exchange Board of India (SEBI) has proposed the concept of blue bonds as
a mode of sustainable finance as such securities can be utilized for various blue economy-related
activities, including oceanic resource mining and sustainable fishing.

The concept of Blue Economy

 The blue economy is the “sustainable use of ocean resources for economic growth, improved
livelihoods, and jobs while preserving the health of ocean ecosystem”.
 India has a 7,500 kilometre-long coastline and 14,500 kilometres of navigable inland waterways, and
the development of the blue economy can serve as a growth catalyst.
 At present, the blue economy comprises 4.1 per cent of India’s economy.

Strengthening the framework of ‘Green Bonds’

 SEBI has also suggested strengthening the framework for green bonds by amplifying the definition
of green debt securities and enhancing disclosures.
 The proposals are aimed at aligning with the updated Green Bond Principles (GBP) published by
the International Capital Market Association (ICMA).

Green Bond
 A green bond is a debt instrument with which capital is being raised to fund ‘green’ projects,
which typically include those relating to renewable energy, clean transportation, sustainable water
management etc.
 A bond is a fixed income instrument that represents a loan made by an investor to a borrower
(typically corporate or governmental).
 Bonds traditionally paid a fixed Interest rate (coupon) to investors.
 Regulation: SEBI has put in place disclosure norms for issuance and listing of green bonds.

3. SOVEREIGN GREEN BONDS

CONTEXT
The Finance Ministry has finalized the framework to issue Sovereign Green Bonds (SGB).

Background:
The plan to issue sovereign green bonds was announced in the 2022-2023 Budget as a part of overall
market borrowing with the intention to use the funds to build green infrastructure.

Infrastructure & Investment 14

Sovereign green bond
 A sovereign green bond is a fixed-income instrument, issued by the government, to raise capital
for the environment- or climate-related projects.
 Sovereign green bonds are an extension of green bonds, but here the government gets to borrow
money.
 Unlike in the case of green bonds, regular papers raise funds that have no strings attached i.e., can
be used for any kind of project.

Green Bond Framework:

 This Green Bond Framework (Framework) sets forth the obligations of the Government of India as a
Green Bond issuer.
 The Framework applies to all sovereign Green Bonds issued by the Government of India.
 Payments of principal and interest on the issuances under this Framework are not conditional on the
performance of the eligible projects.
 Investors in bonds issued under this Framework do not bear any project-related risks.
 Ministry of Finance reserves the right to modify this Framework according to international best
practices; India’s international commitments and environmental priorities.
 The framework is designed to comply with four components and key recommendations of
the International Capital Market Association (ICMA) Green Bond Principles (2021).

4. INVESTMENT IN CAPITAL MARKETS THROUGH

P-NOTES DROPPED

CONTEXT
According to Sebi data, the value of P-note investments in Indian markets—equity, debt, and hybrid
securities—stood at Rs.96, 292 crores at December-end, as compared to Rs.99, 315 crores at the end
of November 2023.

What are Participatory Motes (P- Notes)?

 P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to
be a part of the Indian stock market without registering themselves directly after going through a
due diligence process.

Who issues P- Notes and what is the process?

 Participatory notes are issued by brokers and FIIs registered with SEBI. The investment is made on
behalf of these foreign investors by the already registered brokers in India.
 For example, Indian-based brokerages buy India-based securities and then issue participatory notes

15 Infrastructure & Investment

 to foreign investors. Any dividends or capital gains collected from the underlying securities go back
to the investors.
 The brokers that issue these notes or trades in Indian securities have to mandatorily report their PN
issuance status to SEBI for each quarter.
 These notes allow foreign high-net-worth individuals, hedge funds and other investors to put
money in Indian markets without being registered with SEBI, thus making their participation easy
and smooth.

5. ALTERNATIVE INVESTMENT FUND (AIF)

CONTEXT
In February 2023, the Securities and Exchange Board of India (SEBI) came up with five consultation
papers proposing changes in regulatory norms for Alternative Investment Funds (AIFs).

About
 Alternative Investment Fund is a special investment category that differs from conventional
investment instruments.
 It is a privately pooled fund.
 Generally, institutions and HNIs invest in AIFs as substantial investments are required.
 These investment vehicles adhere to the SEBI (Alternative Investment Funds) Regulations, 2012.
 AIFs can be formed as a company, Limited Liability Partnership (LLP), trust, etc.

Types of AIFs in India

Venture capital fund New-age entrepreneurial firms that require large financing
(VCF) during their initial days can approach VCF. VCF can help
them in overcoming the financial crunch. These funds
invest in start-ups with high growth prospects. HNIs
investing in VCFs adopt a high-risk, high-return strategy
while allocating their resources.

Angel funds These invest in budding start-ups and are called angel
investors. They bring early business management
Category 1: experience with them. These funds invest in those start-
ups that do not receive funding from VCF. The minimum
investment by each angel investor is Rs 25 lakh.

Infrastructure funds This fund invests in infrastructure companies, i.e., those

involved in railway construction, port construction, etc.
Investors who are bullish on infrastructure development
invest their money in these funds.

Social venture funds Funds investing in a socially responsible business are

social venture funds. They are a kind of philanthropic
investment but have a scope of generating decent returns
for investors.

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 Private equity funds A private equity fund invests in unlisted private companies.
It is difficult for unlisted companies to raise funds by
issuing equity and debt instruments. Usually, these funds
come with a lock-in period which ranges from 4 to 7 years.

Debt funds This fund primarily invests in debt securities of unlisted

Category 2: companies. Usually, such companies follow good corporate
governance models and have high growth potential. They
have a low credit rating, which makes them a risky option
for conservative investors. As per SEBI guidelines, money
accumulated by debt funds cannot be used to give loans.

Fund of funds Such funds invest in other Alternative Investment Funds.

They do not have their investment portfolio but focus on
investing in different AIFs.

Private investment A PIPE invests in shares of publicly traded companies. They

in public equity fund acquire shares at a discounted price. Investment through
(PIPE) PIPE is more convenient than going for a secondary issue
owing to less paperwork and administration.
Category 3:
Hedge funds They pool money from accredited investors and institutions.
These funds invest in both domestic and international debt
and equity markets. They adopt an aggressive investment
strategy to generate returns for investors. However, hedge
funds are expensive as fund managers can charge an asset
management fee of 2% or more. They can also levy 20% of
the returns generated as their fees.

6. SWAMIH INVESTMENT FUND

CONTEXT
SWAMIH Investment Fund have so far raised Rs.15,530 crore to provide priority debt financing for
the completion of stressed, brownfield, and residential projects that are registered with Real Estate
Regulatory Authority (RERA).

What is the SWAMIH investment fund?

 The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund I is
a social impact fund created with the objective of completing stressed and stalled Real Estate
Regulatory Authority (RERA) registered projects.
 This is a government backed fund that was set up as a Category-II AIF (Alternate Investment
Fund) debt fund registered with SEBI, launched in 2019.
 The Fund is sponsored by the Ministry of Finance, Government of India, and is managed by SBICAP
Ventures Ltd., a State Bank Group company.
 Fund is considered as the lender of last resort for distressed projects because it funds first-time
developers, established developers with troubled projects, developers with a poor track record of

17 Infrastructure & Investment

 stalled projects, customer complaints and NPA accounts, and even projects where there are litigation
issues.

Alternative Investment Fund (AIF):

 AIF refers to any fund created or incorporated in India that is a privately pooled investment
vehicle that collects funds from professional investors, whether they are domestic or foreign, for
the purpose of investing them in accordance with a defined investment strategy for the benefit
of its investors.
 AIF does not include funds covered under the SEBI (Mutual Funds) Regulations, 1996, SEBI
(Collective Investment Schemes) Regulations, 1999 or any other regulations of the Board to
regulate fund management activities.

7. HYBRID SECURITIES

CONTEXT
Sebi has set up an advisory committee on hybrid securities under KV Kamath on issues related to
development and regulation of primary and secondary markets of hybrid securities in the country.

What are hybrid securities?

 Hybrid securities are investment instruments that combine the features of pure equities and pure
bonds.
 These securities tend to offer a higher return than pure fixed income securities such as bonds but a
lower return than pure variable income securities such as equities.
 They are considered less riskier than pure variable income securities such as equities but more risky
than pure fixed income securities.
 It is a single financial security that combines two or more different financial instruments.
 Hybrid securities, often referred to as “hybrids,” generally combine both debt and equity characteristics.
 The most common type of hybrid security is a convertible bond that has features of an ordinary
bond but is heavily influenced by the price movements of the stock into which it is convertible.
 They are bought and sold on an exchange or through a brokerage.
 Examples: REITs and InvITs are classified as hybrid securities and they are relatively new investment
instruments in the Indian context but are extremely popular in global markets.

8. SURETY BOND INSURANCE

CONTEXT
Government launched the first-of-its-kind ‘Surety Bond Insurance’ for the infrastructure sector.

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About the initiative:
 Aim: To enhance the participation of contractors in project bids, freeing collaterals in between to
support the working capital requirements.
 Functions:
 Surety Bond Insurance will act as a security arrangement for infrastructure projects and will
insulate the contractor as well as the principal (contract awarding authority) from any loss.
 Launched by: Bajaj Allianz General Assurance.

Finance Minister Nirmala Sitharaman in the Budget 2022-23 had said Surety Bonds can be used
as a substitute for bank guarantees for government procurement.

What is Surety Bond?

 A surety bond is a kind of risk transfer tool for the Principal and protects the Principal from losses
that may cause in case the contractor fails to perform their contractual duties.
 The product gives the principal a contract of guarantee that contractual terms and other business
deals will be concluded in accordance with the mutually agreed terms.
 In case the contractor does not fulfil the terms then the Principal can claim surety bonds to recover
the losses.

Who is Principal in bond agreement?

The principal is the party being required to obtain the surety bond by the obligee. When filling out
a surety bond application, you are the principal. The obligee requires the principal to obtain a surety
bond to ensure they uphold their end of the agreement.

9. INDIANS GO WEST, TAKE UP ‘RESIDENCE BY

INVESTMENT’

CONTEXT
In 2022, over 2.25 lakh Indians renounced Indian citizenship, the highest ever since 2011, according
to latest data by the Ministry of External Affairs (MEA).

Key-highlights of the data:

 The data reflects how Indians, especially high net worth individuals (HNIs) are moving westward with
new passports, in search of better opportunities, healthcare, quality of life, and education, among
several other factors.

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 There has been a surge in requests for
High net worth individuals (HNIs)
residence-through-investment programmes
especially for the S. EB-5 visa, Portugal Golden  HNIs are those who have wealth of over $1
Visa, Australian Global Talent Independent million or Rs 8.2 crore.
Visa, Malta Permanent Residency Programme,  According to the Henley Global Citizens
and Greece Residence by Investment Program. Report, there were 3.47 lakh such people in
India in December 2021.

The favourite location:  Of these, 1.49 lakh HNIs were found in

just nine cities: Mumbai, Delhi, Kolkata,
 The US, UK and Canada are favourite destinations. Bengaluru, Hyderabad, Pune, Chennai,
Gurgaon, and Ahmedabad.
EU countries, as well as traditional favorites Dubai
and Singapore, are gaining popularity among  According to the report, India ranked fourth in
Indians. the world in terms of privately-held wealth, after
the U.S., China, and Japan.
 The Portugal Golden Residence Permit Program,
the Australian Global Talent Independent
Visa, the US EB5, the Malta Permanent Residence Programme and the Greece Golden Visa
Program are among the most sought-after investment programmes by Indians for residency,
according to a report by residence and citizenship planning company Henley & Partners

10. ALTERRA: UAE COMMITS $30BN TO CLIMATE-

FOCUSED INVESTMENT VEHICLE

CONTEXT
The UAE announced a US$30 billion commitment to the newly launched catalytic climate vehicle,
ALTÉRRA.

About ALTÉRRA:
 With this US$30 billion commitment, ALTÉRRA becomes the world’s largest private investment
vehicle for climate change action and will aim to mobilize US$250 billion globally by 2030.
 It aims to steer private markets towards climate investments and focus on transforming emerging
markets and developing economies, where traditional investment has been lacking due to the higher
perceived risks across those geographies.
 ALTÉRRA has been established by Lunate, an independent global investment manager, and is
domiciled in the Abu Dhabi Global Market.

11. BSE LAUNCHES ELECTRONIC GOLD RECEIPTS

CONTEXT
The Bombay Stock Exchange (BSE) has received approval from the Securities and Exchange Board
of India (Sebi) for its Electronic Gold Receipt (EGR), India’s first spot physical gold exchange product.

Infrastructure & Investment 20

Background
 In India, electronic gold trading happens through gold derivatives or gold exchange-traded funds
(ETFs) on stock exchanges.
 EGR is the first spot physical gold exchange trading product.
 In the Union Budget 2021-22, the government announced the setting up of a SEBI-regulated gold
spot exchange.
 Then, on September 28, 2021, Sebi introduced two new investment instruments,
 EGR
 silver ETFs

What is an EGR?
 EGRs are depository gold receipts traded on the stock exchanges. They are held in Demat accounts,
just like shares.
 For EGRs, the physical gold is sourced through imports, accredited domestic refineries, or designated
delivery centres.
 The buyer could convert the physical gold into an EGR by depositing the yellow metal at the
designated delivery centre. After the gold is sourced, a depository receipt is created for trading on
BSE.
 For example, a buyer can sell the EGR or convert it to physical gold.

12. MUTUAL FUNDS RE-OPEN OVERSEAS

INVESTMENT FUNDS

CONTEXT
Mutual fund houses are re-opening their international funds for investment due to the potential
loss of long-term capital gains tax benefits if invested after the end of March 2023.

What are International Mutual Funds?

 International mutual funds are equity funds that primarily invest in stocks of companies listed
outside India.
 These funds help to diversify the investment portfolio of the mutual fund and help the funds to
obtain better returns by taking a higher risk associated with investing in international markets.

Important Investment Tools

Mutual Mutual funds are financial instruments that are professionally managed and that
Funds invest money on behalf of any investor, in different securities

21 Infrastructure & Investment

Infrastructure & Investment 22
 A Bond is a form of debt investment which is issued by an issuer (borrower) and
to a lender. Generally, bonds are instruments used by public and private sector
Bonds enterprises to raise huge sums of money which any bank is incapable of lending.
These bonds are then issued in the public market by the borrowing entity and are
bought by lenders for specific amounts of money.

Stocks or equity are shares that are issued by companies and are bought by the
Stocks general public. This offers an avenue to companies to raise funds. Stocks entitle a
customer ownership of a company.

Fixed deposits are financial instruments that are one of the oldest and safest ways
to save money. These are not necessarily active investment tools, but are rather a
Fixed passive way to save and earn returns. A fixed amount of money is kept aside with a
Deposits financial institution for a fixed number of days or months or years. In turn, interest
is earned on this money. The rate of interest differs with the deposit tenure and
also with the banking entity.

A recurring deposit (RD) is another fixed tenure investment that allows investors
Recurring
to invest a fixed amount every month for a pre-defined time and earn a fixed rate
Deposits of interest.

Public Public Provident Fund (PPF) is a long-term tax-saving investment vehicle that
Provident comes with a lock-in period of 15 years. It is offered by the Government of India
Fund (PPF) and the sovereign guarantees back your investments.

Employee EPF is another retirement-oriented investment vehicle that helps salaried individuals
Provident get a tax break under the provisions of Section 80C of the Income Tax Act, 1961.
Fund (EPF)

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