PPP plus PPP’ Model

Context: On World Diabetes Day, the Union Minister for Science and Technology introduced the ‘PPP plus PPP’ model.

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• World Diabetes Day is held on 14th November. 
• Theme (2024): “Breaking Barriers, Bridging Gaps”, 

About Diabetes

• Diabetes is a metabolic disease.
• It causes the body to stop producing insulin efficiently, causing a rise in the blood sugar level. 
• Challenges  faced by diabetes patients in the healthcare 
  • Accessibility: Many lack access to regular treatment.
  • Awareness: Nearly half of diagnosed patients are unaware of their condition.
  • Adherence: Financial and informational challenges limit consistent care.

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About ‘PPP plus PPP’ model

• This model is a strategy to address diabetes. 
• It involves a two-tiered collaboration .
  • In this  model, India’s public and private sectors unite internally to strengthen healthcare infrastructure while simultaneously engaging with international counterparts
    • Domestic Partnership: Public and private sectors within India work together to strengthen healthcare infrastructure.
    • International Partnership: India collaborates with international partners to accelerate innovation and improve healthcare accessibility.
• Objective: This layered partnership model aims to:
  • Improve healthcare accessibility.
  • Foster innovation.
  • Provide scalable solutions for diabetes care.

Mitigation Work Programme (MWP)

Context: India expressed dissatisfaction on unwillingness by Developed countries to engage in the Climate Finance and Mitigation Work Programme at CoP29 in Baku, Azerbaijan.

About Mitigation Work Programme (MWP)

• The Mitigation Work Programme (MWP) is a process established by the United Nations Framework Convention on Climate Change (UNFCCC).
• Aim: To help countries scale up their mitigation ambition and implementation in order to achieve the 1.5°C goal of the Paris Agreement

India’s Position on the Mitigation Work Programme (MWP)

• Specific Mandate of MWP: India emphasised that the MWP was created with a clear mandate to facilitate focused exchanges of views, information, and ideas.
• Non-Prescriptive and Non-Punitive: The outcomes of the MWP will be non-prescriptive and non-punitive, ensuring that no country is forced to take specific actions or meet new targets.
• Respect for National Sovereignty: India stressed that the MWP will respect national sovereignty and circumstances, and will account for each country’s nationally determined contributions (NDCs).
• No New Targets or Goals: India highlighted that the MWP will not impose new targets or goals, but will focus on collaboration and sharing of solutions to mitigate climate change.

About COP29

• Venue: Baku, Azerbaijan
• Conference Dates: 11th November 2024 to 22nd November 2024
• Focus of COP29: Dubbed the “Finance COP,” the summit focuses on establishing a new global climate finance target to support vulnerable nations impacted by climate change.
  • Countries of the Global South, including India, are advocating for enhanced access to financial and technological resources to meet climate goals and safeguard frontline communities.

About COP and UNFCCC

• COP (Conference of the Parties): The primary governing body of the UN Framework Convention on Climate Change (UNFCCC).
• UNFCCC: An international treaty created in 1992 during the Earth Summit in Rio de Janeiro to guide global climate negotiations, aiming to stabilise greenhouse gas concentrations at safe levels to avoid severe human-induced climate disruptions.
• Membership: The UNFCCC includes 198 parties, comprising 197 countries and the European Union, reflecting near-universal global commitment to climate action.

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About Paris Agreement on Climate Change

• Adoption: The Paris Agreement is a legally binding global accord adopted in 2015 at UNFCCC COP21.
• Objective: Its goal is to combat climate change and limit global warming to well below 2°C above pre-industrial levels, aiming for 1.5°C.
• Replacement: It replaced the Kyoto Protocol.

About Global Stocktake under the Paris Agreement

• Establishment: The Global Stocktake is a review mechanism set up under the Paris Agreement in 2015.
• Frequency: It occurs every five years.
• First Stocktake: The inaugural Global Stocktake concluded at COP28 in 2023.

Futures Trading in Agricultural Products

Context: A recent study has found that the suspension of futures derivative trading of agricultural commodities in 2021 has disrupted the agricultural pricing system and worsened inflation.

About the Study

• Background: Indian Government has suspended futures derivatives trading for seven agricultural commodities ie. gram, wheat, paddy, moong, crude palm oil, mustard, and soybean in 2021 to curb the rising prices

About Commodity Futures Contract

• It is an agreement to buy or sell a predetermined amount of a commodity at a specific price on a specific date in the future.
  • The contract, unlike the Option contract, obliges the buyer to purchase some underlying asset (or the seller to sell that asset) at a predetermined future price and date.
• Commodity futures can be used to hedge or protect an investment position or to bet on the directional move of the underlying asset.
• Regulating Agency: SEBI (Securities Exchange Board of India) regulates Commodity trading in India. It has set up a separate category for commodity futures trading under the F&O (Futures & Options) segment.
  • Previously, Commodity trade was regulated by The Forward Markets Commission (FMC), established under the Forward Contracts (Regulation) Act, 1952.
  • FMC was merged with SEBI in 2015 to make the regulation of commodities market more robust.
• Significance: The hedging and price discovery functions of future markets promote more efficient production, storage, marketing and agro-processing operations with overall improvement in  agricultural marketing performance.

About Derivatives

• Types: Derivatives are financial instruments whose value is derived from other underlying assets. 
• There are mainly four types of derivative contracts
  • Futures: They are standardized contract which are traded on the exchange to buy or sell underlying instrument at certain date in future
    • It does not carry any credit risk as the clearing house acts as counter-party to both parties in the contract
  • Forwards: It is an agreement between two parties and it is traded over-the-counter (OTC).
  • Options: An Option contract gives the right but not an obligation to buy/sell the underlying assets. It requires paying a  premium to the seller.
    • Options can be traded in both OTC market and exchange traded markets and are  divided into two types – call and put.
  • Swaps: It is between two parties to exchange cash flows in the future. Interest rate swaps and currency swaps are the most popular swap contracts.
    • India does not exercise the swap option in its market.

About Hedging

• It is a risk management technique whereby an asset is purchased with the intention of reducing the risk of loss from another asset. 
  • It focuses on minimizing and eliminating the risk of uncertainty and limiting losses occurring as a result of unforeseeable variations in the price of the investment
• Types: Hedging can be done by 4 types namely,
  • Forward Contract; Futures Contract; Money Market and Hedge Funds

Ayushman Vay Vandana

Context: Recently, Prime minister launched Ayushman Vaya Vandana health cards under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY)

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• Over 10 lakh senior citizens aged 70 and above have enrolled in the newly launched Ayushman Vay Vandana scheme.
• Among the enrollees, women account for approximately 4 lakh registrations
• Since the scheme’s implementation, treatments worth over ₹9 crore have been authorized.
  • These benefits have helped more than 4,800 senior citizens, including over 1,400 women.

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About Ayushman Vay Vandana

• It is healthcare coverage for the senior citizens aged 70 years and  above.
• Scheme type: Centrally Sponsored Scheme
  • State contribution: 40% of the cost. 
• Launch Date: October 29, 2024
• Nodal ministry: The Ministry of Health and Family Welfare. 
• This scheme provides free healthcare benefits under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).
• Key Takeaways 
  • Elderly people aged 70 and above will get Rs 5 lakh annually which will be shared within the family. 
    • In case of two beneficiaries in the household, the cover will be split among them. 
  • Top-Up Cover for Elderly Beneficiaries
    • Elderly members (aged 70+) from families already covered under Ayushman Bharat will receive an additional ₹5 lakh top-up cover exclusively for them.
      • To access the top-up, these beneficiaries must re-register under the scheme.
  • Health coverage under Ayushman Vay Vandana Card 
    • The new scheme provides coverage for various health conditions, including:
      • Coronary angioplasty
      • Hip fractures and replacements
      • Gallbladder removal
      • Cataract surgery
      • Prostate resection
      • Stroke treatment
• About PM JAY 
  • PM JAY stands for Pradhan Mantri Jan Arogya Yojana 
  • It is recognised as the world’s largest health assurance scheme. 
  • It provides secondary and tertiary care hospitalization benefits.
  • Key Features
    • Coverage Amount: Offers health benefits of up to ₹5 lakh per family annually.
    • Target Population: Covers nearly 55 crore individuals, representing the bottom 40% of India’s population.
  • Beneficiary Identification :  Beneficiaries are identified based on the Socio-Economic Caste Census (SECC) 2011:
    • Rural Areas: Inclusion is based on deprivation criteria.
    • Urban Areas: Selection is determined by occupational categories.

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