National Bank for Financing Infrastructure Development (NaBFID)

Why in news?

• The National Bank for Financing Infrastructure Development (NaBFID) is set to achieve significant milestones in loan sanctions and disbursements by the end of FY24, according to Rajkiran Rai, the Managing Director and CEO.

Loan Sanctions and Disbursements

• NaBFID aims to conclude FY24 with final loan sanctions amounting to ₹1 lakh crore, out of which approximately ₹25,000 crore has already been sanctioned as of the present date.
• The CEO highlighted that in-principle sanctions currently stand at around ₹55,000 crore.
• In terms of disbursements, NaBFID has disbursed approximately ₹15,000 crore so far, with further disbursements expected to reach close to ₹60,000 crore by the end of FY24.

Expansion into New Sectors

• Recognizing the growing demand and investment potential, NaBFID is actively considering proposals in the solar and wind energy segments, city gas distribution, data centers, telecom towers, and multi-modal transport projects.
• The institution anticipates that these sectors will absorb substantial investments and contribute to the overall development of the country’s infrastructure.

Future Outlook and Resource Mobilization

• NaBFID’s sanctions to expand to ₹3 lakh crore by March 2026.
• To support its lending activities, the institution recently raised ₹10,000 crore through unsecured non-convertible debt securities. NaBFID plans to raise an additional ₹30,000 crore through bond issuances in the second half of the year.
• Combining these bond issuances with bank credit lines, NaBFID aims to mobilize resources amounting to ₹50,000–52,000 crore in FY24. Furthermore, NaBFID plans to increase its capital through Tier-I and Tier-II issuances in the coming year, with the objective of attracting more investments to the infrastructure sector.

About National Bank for Financing Infrastructure and Development (NBFID)

• NaBFID is a specialized Development Finance Institution established in 2021 by an Act of the Parliament in India.
• It is regulated and supervised by the Reserve Bank of India (RBI) as an All-India Financial Institution (AIFI).

Objective:

• To directly or indirectly provide loans, investments, and attract funding for infrastructure projects in India.
• To promote the growth of the market for infrastructure financing instruments such as bonds, loans, and derivatives.

Functions of NBFID:

• Extending loans and advances for infrastructure projects and refinancing or taking over existing loans for such projects.
• Attracting private sector investors and institutional investors to invest in infrastructure projects.
• Facilitating foreign participation in infrastructure projects.
• Providing consultancy services in the field of infrastructure financing.

Source of Funds:

• Loans in Indian rupees or foreign currencies.
• Issuing and selling financial instruments like bonds and debentures.
• It may borrow from Central government, Reserve Bank of India (RBI), scheduled commercial banks, mutual funds.
• Multilateral institutions such as the World Bank and Asian Development Bank.

Board of Directors:

• The central government, in consultation with RBI, will appoint the Chairperson.
• A central government-appointed body will recommend candidates for Managing Director and Deputy Managing Directors.

Conclusion

• NaBFID’s progress in loan sanctions and disbursements demonstrates its commitment to supporting infrastructure development in India. With a focus on road and energy projects, as well as the exploration of new sectors such as renewable energy, city gas distribution, data centers, telecom towers, and multi-modal transport, NaBFID aims to contribute significantly to the country’s infrastructure growth.

GS PAPER – III

GEMCOVAC-OM

Why in news?

• India’s first indigenous mRNA vaccine for the Omicron variant, GEMCOVAC-OM, developed by Gennova Biopharmaceuticals Ltd, has received emergency use approval from the Drug Controller General of India. This development follows the earlier approval of GEMCOVAC- 19, the country’s first mRNA vaccine against COVID-19.

Overview

• GEMCOVAC-OM has been approved under emergency use guidelines and is expected to be formally launched and rolled out in the next two to three weeks. The vaccine’s stability in a 2-8 degree Celsius range allows for storage in ordinary refrigerators.
• The technology development of Gennova’s mRNA-based vaccine was partially funded by the Department of Biotechnology (DBT) from the proof of concept stage to Phase I clinical trials. The DBT considers Gennova’s platform technology as disease-agnostic, enabling the rapid development of other vaccines.

Unique Features

• GEMCOVAC-OM’s unique selling points include its stability at ordinary refrigeration temperatures and the ability to administer it via a needle-free system.
• The vaccine’s components can also be produced and integrated separately, facilitating rapid deployment globally if needed.
• Data from clinical trials, currently under review by the DCGI, indicate that GEMCOVAC-OM has a greater safety profile than Covishield and generates higher levels of neutralizing antibodies.
• Neutralizing antibodies are crucial in preventing the proliferation of the coronavirus within the body.

Conclusion

• The approval of GEMCOVAC-OM provides India with an indigenous mRNA vaccine against the Omicron variant. The vaccine’s unique features, safety profile, and potential for rapid adaptation to new variants make it a valuable addition to India’s vaccination efforts. Further information regarding the vaccine’s availability, pricing, and market demand will determine its success in combating the Omicron variant.

GS PAPER – III

North India’s First Skin Bank at Delhi’s Safdarjung Hospital

Why in news?

• A new skin bank, the first of its kind in North India, was inaugurated at Delhi’s Safdarjung Hospital. This facility allows for the donation and storage of deceased individuals’ skin, benefiting patients with severe burns and other skin-related conditions.

Skin Banks in India

• Currently, India has 16 skin banks, with seven located in Maharashtra, four in Chennai, three in Karnataka, and one each in Madhya Pradesh and Odisha.
• The absence of a skin bank in Delhi and Northern India prompted the establishment of the new facility at Safdarjung Hospital.

Importance of Skin Donations

• Despite widespread knowledge about organ donations, skin donations remain less well-known.
• Dr. Shalabh Kumar, the head of the burns and plastic surgery department at Safdarjung Hospital, highlighted the need to raise awareness about the importance of skin donations.

Skin Grafting Process

• Skin grafting involves a straightforward procedure.
• The skin can be donated within six hours of the donor’s death. Subsequently, the skin is extracted, harvested, and processed over a period of five to six weeks.
• After this, it becomes available for transplantation to patients in need. Unlike organs like kidneys and livers that require immediate transplantation, skin can be stored for three to five years.

Benefits of Skin Grafting

• According to Dr. Kumar, skin grafting plays a crucial role in decreasing mortality rates, improving survival rates, and enhancing healing outcomes for patients.
• It also reduces hospital stays and the overall cost of treatment.
• Previously, severe burn patients had to rely on transporting skin from Southern India, but with the establishment of the skin bank in Delhi, this logistical challenge is now eliminated.

Applications of Skin Grafting

• Skin grafting is beneficial for patients with severe burns, skin infections, skin cancer treatments (such as Mohs surgery), skin ulcers, slow-healing wounds, and large wounds.
• By providing a readily available supply of donated skin, the skin bank at Safdarjung Hospital aims to address the needs of such patients.

Conclusion

• The inauguration of the skin bank at Safdarjung Hospital marks a significant milestone for Northern India, enabling the donation and storage of deceased individuals’ skin for transplantation purposes. With increased awareness about skin donations, this facility will contribute to improved treatment outcomes for patients with burns and various skin-related conditions in the region.

GS PAPER – II

Draft Delimitation Proposal for Assam Released

Why in news?

• The Election Commission of India has published the draft delimitation proposal for Assam, outlining changes in the distribution of Assembly and Lok Sabha seats. While the total number of seats remains unchanged, there is an increase in the number of Assembly seats reserved for Scheduled Castes (SCs) and Scheduled Tribes (STs) based on the 2001 Census data.

Proposed Changes in Assembly Seats

• According to the draft proposal, the number of Assembly seats for STs has increased from 16 to 19, and for SCs, it has increased from eight to nine.
• The autonomous Bodoland Territorial Region has gained three additional Assembly seats, bringing the total to 19.
• Furthermore, the hilly West Karbi Anglong district has gained an additional Assembly constituency.
• No changes have been proposed for the number of Lok Sabha seats in Assam. However, there is a suggestion to rename one constituency after Kaziranga.

Consideration of 2001 Census

• The delimitation exercise is based on the 2001 Census figures.
• The Election Commission received suggestions and objections from 11 political parties and 71 other organizations.
• There were differing opinions regarding delimitation based on the 2001 Census, with some groups in favor and others against it.

Factors Considered

• The Election Commission took into account the change in demographic patterns in the state, considering districts with both low and abnormally high population growth.
• It aimed to ensure that districts with low growth were not disadvantaged, and proposed a variation of 25% from the general norms to prevent inadequate representation and address the diverse geographical features of Assam.

Delimitation Process and Methodology

• Delimitation is the process of redrawing boundaries of constituencies based on census data to achieve a more equitable distribution of voters.
• The Election Commission designs and finalizes guidelines and methodology for delimiting constituencies, considering physical features, existing administrative boundaries, communication facilities, and public convenience.
• The draft proposal is published in gazettes to invite suggestions and objections from the general public.

Background and Opposition

• Delimitation in Assam was put on hold previously due to family planning programs and security risks.
• The use of the 2001 Census data and the provision of Section 8A of the Representation of People Act, 1950, have faced criticism from some political parties.
• Concerns have been raised about the perceived political agenda and potential impact on minority communities.

Delimitation as Assam’s Safeguard

• Assam Chief Minister Himanta Biswa Sarma sees delimitation as a means to safeguard the indigenous people and address concerns about demographic changes.
• He believes it can provide the constitutional, legislative, and administrative safeguards envisaged by the Assam Accord, ensuring the preservation of Assam’s cultural identity and protecting law-abiding communities.

Conclusion

• The release of the draft delimitation proposal for Assam marks a significant step in the redrawing of constituency boundaries. The proposed changes in reserved seats and the consideration of the 2001 Census data have sparked discussions and debates among political parties and organizations. As the public is invited to share their suggestions and objections, the final delimitation plan will shape the political landscape of Assam in the coming years.