PIB Summaries 26 August 2023

CONTENTS

1. Amrit Sarovar Mission
2. Insurance Surety Bonds

Amrit Sarovar Mission

Context:

Recently, the Ministry of Rural Development has provided insights into the advancements made in the implementation of Mission Amrit Sarovar, an initiative aimed at enhancing water security across various regions.

Relevance:

GS II- Government policies and Intervention

Dimensions of the Article:

1. About Amrit Sarovar Mission
2. Aim of the mission
3. Target of the mission

About Amrit Sarovar Mission

• On April 24, 2022, the Amrit Sarovar Mission was begun with the goal of conserving water for the future.
• The Mission’s technical partner is the Bhaskaracharya National Institute for Space Application and Geoinformatics (BISAG-N).
• The Mission operates through States and Districts, emphasising several initiatives such as Mahatma Gandhi NREGS, XV Finance Commission Grants, PMKSY sub-schemes such Watershed Development Component and Har Khet Ko Pani, as well as State-specific schemes.

Ministries Involved:

This Mission has been launched with a whole Government Approach with 6 Ministries/Department namely:

• Department of Rural Development
• Department of land resources
• Department of Drinking Water and Sanitation
• Department of Water resources
• Ministry of Panchayati Raj
• Ministry of Forest, Environment and Climate Changes

Aim of the mission:

• As part of the Azadi ka Amrit Mahotsav celebrations, the Mission aims to develop and rejuvenate 75 water bodies in each district in the country.
• It would result in the production of 50,000 water bodies, each roughly an acre in size or more.
• The Mission urges citizens and non-governmental resources to help supplement their efforts.

Target of the mission:

• Mission Amrit Sarovar is to be completed by 15th August 2023.
•  Around 50,000 Amrit Sarovars could be built across the country.
• Each of these Amrit Sarovars will be about 1 acre in size and have a water storage capacity of 10,000 cubic metres. The fundamental focus is on people’s participation in the Mission.
• Local freedom fighter, their family members, Martyr’s family members, Padma Awardee and citizens of the local area wherein an Amrit Sarovar is to be constructed, will be engaged at all stages.
• Every 15th of August, a National Flag Raising Ceremony will be held at each Amrit Sarovar location.

Insurance Surety Bonds

Context:

Recently, the National Highways Authority of India (NHAI) organised a brainstorming session with stakeholders to expedite the adoption of Insurance Surety Bonds for its contracts.

Relevance:

GS III: Indian Economy

Dimensions of the Article:

1. Insurance Surety Bonds
2. Advantages of Insurance Surety Bonds

Insurance Surety Bonds:

• Insurance surety bonds are written agreements that guarantee compliance, payment, or performance of a specific act.
• Role of Insurance Companies: These bonds involve insurance companies acting as “Surety,” providing a financial guarantee that a contractor will fulfill its obligations according to agreed terms.
• Three-Party Agreement: Surety bonds involve a unique three-party agreement.

Parties Involved:

• Principal: The party purchasing the bond, committing to fulfill a promised action.
• Surety: The insurance company guaranteeing the performance. If the principal fails, the surety becomes liable for losses.
• Obligee: The party requiring the bond, often a governmental organization for most surety bonds.

Advantages of Insurance Surety Bonds

• Security for Infrastructure Projects: Offers security for infrastructure projects, protecting both contractors and principals.
• Diverse Contractor Coverage: Meets the needs of various contractors, especially in today’s volatile environment.
• Contractual Guarantee: Provides a contractual guarantee that business deals will adhere to agreed-upon terms.
• Loss Recovery: If the contractor fails to meet terms, the principal can make a claim on the surety bond to recover incurred losses.
• Minimal Collateral: Unlike bank guarantees, surety bond insurance doesn’t require substantial collateral, freeing up funds for contractors’ business growth.
• Debt Reduction: Helps reduce contractors’ debts, addressing financial concerns.