India Kaladan project in Myanmar in limbo as rebels control key town (GS Paper 2, International Relation)
Why in news?
- One of India’s flagship connectivity projects that was aimed at enhancing road and maritime connection with Southeast Asia has faced a definite setback after an important town in Myanmar was captured recently by a rebel group.
- The Kaladan Multi-Modal Transit Transport Project (KMTTP) has “almost died” after the rebel Arakan Army (AA) captured the Paletwa township near Mizoram border in January.
Details:
- KMTTP was aimed at connecting the port of Kolkata with the port of Sittwe in Rakhine or Arakan State which would then be connected to Mizoram by road and the Kaladan river which flows by Paletwa.
- But the restive province has witnessed serious clashes between the Myanmar military and the rebel AA. The AA has established control over Mrauk-U, Kyauktaw, Minbya, Thandwe, and major roads connecting these towns.
- AA has also captured Ann township which has Myanmar Army’s Western Command headquarters.
Arakan Army (AA)’s conflict with the Myanmar military junta:
- Kaladan project, which was estimated to cost around $500 million has been delayed for multiple reasons, including the Rohingya crisis that erupted in 2017.
- However while the Rohingya crisis is rooted in religious and ethnic differences between the junta in Naypyidaw and Muslim Rohingyas, the conflict between the AA and the Myanmar military junta is not based on religious differences but fuelled by a nationalist aspiration of the Buddhist Arakanese population of the region which has been demanding a confederated or independent status.
- The population of Rakhine State is divided among the Buddhist Arakanese, Rohingyas and non-Rohingya Muslims, Christians, and other communities.
- The fight between the AA and the junta’s forces took a crucial turn on January 15 when the rebel forces captured Paletwa.
- This move has also roused concern of a tripartite conflict involving the junta’s forces, the AA, and rebels of the Chin State as Paletwa has been traditionally a Chin-majority township.
What’s next?
- The AA is in an advantageous position and it is a matter of time before they establish control over the entire State of Rakhine, an unprecedented situation.
- They are now aiming for capturing the Sittwe port, which is one of the oldest ports and airports of Myanmar.
Kyasanur Forest Disease, the assault of the tick
(GS Paper 2, Health)
Why in news?
- Since January 1, two people have died due to Kyasanur Forest Disease (KFD), a viral infection, in Karnataka.
- The number of deaths reported due to the disease since 1956, when it was noticed in the forests of Shivamogga district, is above 560.
- The number of cases in Malnad’s districts; Shivamogga, Uttara Kannada and Chikkamagaluru has been increasing, forcing the Health and Family Welfare Department to take measures to contain its spread.
What is KFD?
- The disease was first noticed in the Kysanur Forest area of Sorab Taluk in Shivamogga district in 1956, and was named after the region. It is also known as monkey fever, as monkeys also get infected. In fact, the death of a monkey serves as a warning of a KFD outbreak.
- The scientists concluded that the virus must have been present in the forests of Malnad region. It became active due to ecological changes.
Transmission:
- The disease spreads through ticks. Primates that come in contact with infective ticks contract the disease. Human beings who visit the same forest area can contract the disease.
- Normally, the transmission begins from late November to June. It peaks between December and March. A blood test is done to identify if someone has KFD.
- Symptoms start to appear three to eight days after the bite, of an infective tick. Fever, redness of the eyes, severe headache, and body pain are common symptoms. Three-four days after the onset of initial symptoms, the patient may have gastro-intenstinal symptoms.
- In severe cases, bleeding from the nose is noted. There is no specific treatment, doctors handle the symptoms, and monitor the vitals daily.
- An attempt to use a vaccine was given up after studies showed it to be ineffective. The ICMR is said to be in consultation with Indian Immunologicals for development of a vaccine.
Spread:
- For nearly 15 years (up to 1971), the disease was confined to Shivamogga district. It was noticed in Uttara Kannada district in 1972. In 1980, cases were reported in Koppa, Chikkamagaluru.
- Two years later it was found in Dakshina Kannada. Cases were late reported in Chamarajanagar (2012), Belagavi district (2016), Gadag (2017), Mysuru, and Hassan (2019). The virus has been found in other states too.
- It was detected in dead monkeys in the Nilgiri district of Tamil Nadu in 2012.
- Six human cases were reported in Wayanad and Malappuram, Kerala in 2013–14.
- An outbreak was reported in North Goa district in 2015–16. Maharashtra reported cases in 2016.
The Paytm Payments Bank debacle
(GS Paper 3, Economy)
Why in news?
- In a major blow to fintech services provider Paytm, the Reserve Bank of India (RBI) barred its payments bank subsidiary, Paytm Payments Bank Ltd (PPBL) from obtaining further deposits and top-ups in its accounts or wallets from February 29.
- PPBL was barred from on-boarding news customers back in March 2022. The latest move was after an audit report had revealed “persistent non-compliances and continued material supervisory concerns in the bank”.
What has the RBI instructed?
- The RBI has disallowed the Paytm subsidiary from accepting further deposits, top ups or credit transactions into its operated wallet or accounts from February 29.
- This also applies to its prepaid instruments for FASTags and National Common Mobility Cards (NCMC) cards. Present customers would, however, be allowed to use their existing balances to avail the services.
- The payments bank houses the parent company One97 Communication (OCL)’s more than 330 million wallet accounts.
- Further, PPBL has been prohibited from carrying out any banking services (in the nature of services like AEPS, IMPS etc), bill payments and UPI.
Nodal accounts:
- It has also been directed to “terminate at the earliest”, or before February 29, nodal accounts of its parent company and Paytm Payments Services.
- Nodal accounts are a type of bank account opened by businesses (financial intermediaries) and are used for holding money from participating banks from the consumer’s side, and ultimately remitting to the specific merchant.
- It has asked the subsidiary to settle all pipeline and nodal accounts transactions by March 29. No further transactions shall be permitted thereafter.
- Equity researchers at Macquire Capital believe the move may result in revenue and profitability implications in the medium to long term.
- The parent company expects the latest action would have a “worst case impact” of ₹300 to ₹500 crore on its annual EBITDA (earnings before interest, taxes, depreciation, and amortisation).
How is Paytm looking to transition?
- The company informed that it would now be working with other banks and not with PPBL.
- It further intends to expand third-party bank partnerships for merchant acquiring services (providing essential infrastructure for acquiring merchants for helping them access payments) with other banks.
- It would entail finding an interested partner bank to integrate with the necessary Paytm ecosystem.
- Assessing the ensuing commercial viability and finally, facilitating the account-to-account migration which could be time-consuming given, as he stated, “the time is short”.
- The other option would be a one-time migration.
