August 06
TOPICS COVERED
- L-G can nominate 10 aldermen to Delhi corporation, rules SC
- West Bengal Assembly passes resolution against efforts to divide the State (GS paper-II: Article 2,3 and 4)
- NPAs on Mudra loans have come down in 2023-24, says Nirmala (GS Paper-III: Banking System)
- RS begins discussion on Ministry of new and renewable energy (GS Paper-III: S&T)
- Extra personnel have been deployed along the border, says BSF
- Justify inclusion of 77 castes in OBC list: SC to Bengal govt. (GS Paper-II: Polity)
- Opposition criticises ‘plans’ to amend Waqf Act, says it will oppose Bill in Parliament (GS Paper-II: Polity)
- Preamble dropped from several NCERT Class 3, 6 textbooks (GS Paper-II: Polity)
- The social benefits of stock market speculation
- The issue of institutional violence, addressing it (GS Paper-I: Society)
- Powering India’s future (GS Paper-III: Energy)
- On doorstep delivery of alcohol (GS Paper-IV: ethics)
- Why was a customs duty hike imposed for lab chemicals? (GS Paper-III: Import Duty)
- How time has been kept throughout history: from sundials to atomic clocks (GS Paper-I: History of Clock)

L-G can nominate 10 aldermen to Delhi corporation, rules SC (06 August)
- The Supreme Court ruled that the Lieutenant-Governor (L-G) of Delhi can nominate 10 experts to the Municipal Corporation of Delhi without needing the aid and advice of the Council of Ministers.
- The judgment was given by a Bench of Chief Justice D.Y. Chandrachud, Justices P.S. Narasimha, and J.B. Pardiwala, with Justice Narasimha authoring the judgment.
- The L-G's power comes from Section 3(3)(b)(1) of the Delhi Municipal Corporation Act, 1957, amended in 1993 to include the nomination power.
- The Bench referenced a Constitution Bench judgment stating that the Delhi government's executive power must align with parliamentary laws on State and Concurrent List subjects in the Seventh Schedule of the Constitution.
- Justice Narasimha disagreed with A.M. Singhvi's argument that the L-G's power was outdated and merely symbolic.
- Singhvi contended that Delhi's elected government should manage its municipal administration without L-G interference.
- The court emphasized that the L-G's power to nominate is based on a law made by Parliament, which requires the L-G to exercise this power.
- The key legal question was whether the L-G could independently nominate 10 persons or if he needed the Council of Ministers' aid and advice.
- Justice Narasimha noted that the L-G's power to nominate was established by the 1993 amendments to the DMC Act, 1957, to align with constitutional changes in Articles 239AA and 239AB regarding the Delhi government.
- The DMC Act, a parliamentary law, expressly grants the L-G the power to nominate.
- The court ruled that the L-G must act according to the statute, independent of the Council of Ministers' advice.

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What Are NPAs
Classification of NPAs
Stages of NPAs:
4. Addressing and Improving the Health of Banks
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The Pradhan Mantri MUDRA Yojana (PMMY) was launched by the Government of India in April 2015 to provide loans to non-corporate, non-farm small/micro enterprises. The scheme aims to facilitate the growth of small businesses by providing them with access to finance. Objectives of Mudra Loans
Categories of Mudra Loans Mudra loans are classified into three categories based on the stage of business growth and funding requirements:
Features of Mudra Loans
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International Solar Alliance (ISA)
Green Hydrogen Mission
PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan)
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Waqf Act, 1995
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The social benefits of stock market speculation (06 August)
- The Indian government increased taxes on short-term and long-term capital gains from the stock market and raised the securities transaction tax on derivatives.
- The government believes that stock market gains are similar to gambling profits.
- The Economic Survey argued that India's limited savings should not be wasted on stock market speculation.
- Finance Secretary T.V. Somanathan said capital gains could be taxed higher as they are the fastest-growing income class.
- Capital gains are viewed as easy profits that don't provide a useful service to society.
- Similar disdain is shown for real estate profits, with the recent Budget removing indexation benefits for real estate investors.
- Many believe that buying and selling assets at a profit doesn't add value to society and contributes to inequality.
- Taxing capital gains is seen as beneficial for society, but this belief is disputed.
How capital gains occur
- Capital gains occur due to the inability to perfectly predict future asset values.
- If investors could perfectly forecast future cash flows, they would buy assets at their fair value, leaving no room for capital gains.
- For example, if an asset is known to yield ₹110 in a year and investors want a 10% return, they would pay ₹100 for it.
- In this ideal scenario, no investor could buy the asset for ₹50 and sell it for ₹100 to make a profit.
- However, in the real world, the future is uncertain, leading to varying forecasts about future cash flows.
- As a result, investors sometimes overvalue or undervalue assets based on their predictions.
- Investors earn capital gains by investing in undervalued businesses, which increase in price when others recognize their true value.
- Efficient capital allocation by investors leads to profitable capital gains.
- Inefficient capital allocation results in capital losses.
- Efficient capital allocation is crucial for a richer economy as it ensures scarce resources are used effectively.
- During a pandemic, capital should be allocated to high-demand sectors like healthcare, not low-demand sectors like cruise ships and aircraft.
- Uniform capital gains tax may help prevent misallocation, but higher taxes can affect incentives and overall economic growth.
The issue of ‘gambling instincts
- Critics argue that buying and selling stocks does not directly benefit businesses as the money often goes to the previous owner.
- They overlook that early investors are more likely to invest if there is an active market where they can sell their shares later.
- The government aims to encourage long-term investing by increasing taxes on short-term capital gains.
- However, without short-term traders providing market liquidity, long-term investors would struggle to sell their stocks easily.
- A highly liquid market ensures that shares are priced accurately.
- Efficient pricing helps promising companies raise funds more easily than those with uncertain prospects, aiding resource allocation.
- Gains from derivatives (futures and options) face even more criticism than capital gains from shares.
- This disdain towards derivatives speculation stems from a lack of understanding of their social benefits.
- Derivatives are contracts allowing investors to buy or sell an asset at a predetermined price in the future.
- These instruments help transfer the risk of price changes from one group of investors to another willing to assume that risk.
- Without derivatives, many investors would avoid making investments due to risk.
- For example, a farmer might avoid producing crops if futures contracts didn't exist to assure a future price, due to the risk of price fluctuations.
- Derivatives trading can appear like gambling, especially when neither party intends to buy or sell the actual asset.
- Such speculative bets in derivatives are similar to much of the trading in the cash market, where traders might not have a long-term interest in the business.
- Active trading, even for speculative reasons, provides liquidity for long-term investors.
- Speculative traders in derivatives improve the availability of these instruments for fundamental investors who want to manage risk.
Understanding these benefits can lead to better public policy on stock market speculation.
The issue of institutional violence, addressing it (06 August)
- India's electoral process is large, with 642 million voters, over half of whom are women.
- Despite the high number of female voters, few election candidates prioritized women's safety in their campaigns.
- Gender-based violence is prevalent: 90 rapes reported daily, nearly 50% of women face domestic violence, and two out of three Dalit women experience sexual violence.
- Political parties and voters largely ignored these issues.
- Gender-based violence is often seen as a single act, but institutional violence against survivors is prolonged and more damaging.
- Institutional violence includes negative attitudes from authorities; for example, 39% of officers think gender-based violence complaints are baseless.
- Survivors face a brutal police system and a long, traumatic judicial process, perpetuating a cycle of violence.
- Women often seek justice only when their situation becomes unbearable.
- Despite high rates of intimate partner violence, India has a very low divorce rate (1%).
- 77% of women in India remain silent about the violence they experience, even to close relatives.
- Ranjita, founder of Samarthya, shared an example where a woman with bleeding veins was discouraged by police from filing a complaint.
- The police tried to dissuade her, sent her to different stations, and accused the organization of coercion.
- They later claimed the case was out of their jurisdiction since the woman was from a neighboring state.
- These are common challenges faced in the justice system.
Problems in rural India
- Rural India faces additional barriers for women seeking justice due to male and upper-caste dominated panchayats.
- Divorce is rarely an option; India has a backlog of 40 million court cases, heavily impacting gender-based violence survivors.
- Survivors from marginalized communities face even more difficulties due to caste, literacy, and geographic inequities.
- Ranjita says that seeking justice in India can often lead to further injustice.
- Bureaucrats and elected leaders can help by creating survivor-centric institutions.
- Social impact organizations have been training police and judicial members to adopt trauma-informed approaches.
- Example: Vanangna, a women-led organization in Bundelkhand, trains government officials on women-centric and survivor-centric processes.
- These learnings should be adopted nationally.
- Involvement of violence survivors, especially from marginalized communities, is crucial in designing a just system.
Strong laws, weak implementation
- India has strong domestic violence laws, but they are poorly implemented due to ineffective officials and outdated processes.
- Officials often come from a society that has normalized violence, affecting the justice system.
- There is a need for a national overhaul of justice institutions, using lessons from organizations like Vanangna to make them trauma-informed and healing-focused.
- More data and public stories are needed to understand the scope of violence and justice denial.
- Recent updates to criminal laws focus on timeliness and digital access but need to be paired with gender-sensitive training and evaluation.
- Voters and politicians can drive change by highlighting the issue, similar to the success seen with promoting girls' education.
- For meaningful change, voters must demand rights to ensure women’s safety and dignity.
On the edge (06 August)
While protecting Israel, the West must
also rein in Netanyahu
- On July 30, senior Hezbollah commander Fuad Shukr was killed in Beirut, and Hamas leader Ismail Haniyeh was killed in Tehran.
- Israel has claimed responsibility for Shukr’s killing but hasn’t confirmed or denied involvement in Haniyeh’s assassination.
- Tensions on Israel’s northern border with Lebanon have been high since last year's Gaza war, with frequent exchanges of fire between Hezbollah and Israeli Defense Forces.
- After Shukr’s death, Hezbollah launched numerous rockets, escalating tensions further.
- There is concern about potential Iranian retaliation against Israel for the attacks on its allies.
- Previously, when Israel bombed Iran's embassy in Damascus, Iran responded with drone and missile attacks on Israel.
- Given the recent direct attack on Tehran and the killing of an ally, Iran may retaliate strongly against Israel.
- By killing Ismail Haniyeh in Tehran, Israel has shown it can carry out complex operations in hostile areas and revealed weaknesses in Iran’s security.
- This act sends a strong warning to Hamas that its leaders are not safe, but it might also backfire for Israel.
- The timing of Haniyeh's killing undermines peace efforts between Israel and Hamas, as Haniyeh was a moderate pushing for a ceasefire.
- Prime Minister Netanyahu’s actions suggest he prefers continuing the conflict rather than seeking peace.
- Attacking Tehran violates Iran’s sovereignty and could provoke Iranian retaliation, potentially dragging the U.S. into a conflict.
- The U.S. had previously prevented such escalation by controlling Israel's actions, but Israel has continued provocative attacks.
- As tensions rise, the U.S. and its allies should minimize the impact of Iran's response on Israel and establish new rules to prevent further threats to regional security.
On target (06 August)
Indian shooters lived up to expectations
in Paris Olympics
- After Rajyavardhan Singh Rathore's silver medal in 2004, Indian shooters faced high expectations.
- Abhinav Bindra's gold in 2008 intensified the pressure.
- In 2012, Gagan Narang and Vijay Kumar won bronze and silver, respectively, in shooting events.
- However, there were no shooting medals in Rio 2016 and Tokyo 2020.
- At the Paris Games, Manu Bhaker broke the drought by winning the first Olympic shooting medal for Indian women.
- Manu Bhaker won bronze in the 10m air pistol and another bronze in the mixed 10m air pistol with Sarabjot Singh.
- She narrowly missed a hat-trick, finishing fourth in the 25m pistol final.
- Manu Bhaker's success highlights the progress of Indian shooting and reflects an efficient sporting system.
- She follows the path set by Anjali Bhagwat and Suma Shirur, who faced challenges with limited funds and low awareness of shooting as a sport.
- Although Anjali and Suma didn't win Olympic medals, they inspired future shooters.
- Manu's collaboration with her former coach Jaspal Rana added a new dimension to her performance.
- Shooting requires steady hands, sharp vision, and a calm mind, traits evident in Manu's performance.
- Swapnil Kusale won bronze in the men’s 50m rifle three positions event.
- Arjun Babuta's fourth-place finish in the men’s 10m air rifle final showed how close shooting results can be.
- Archery, on the other hand, continued to disappoint, with Deepika Kumari and others struggling in crucial moments.

Powering India’s future (06 August)
- The Finance Minister announced measures for India's clean energy transition, including policies on pumped hydro storage, nuclear energy support, and energy efficiency.
- India experienced record-breaking heatwaves this summer, increasing power demand.
- The NDA government prioritizes energy security and clean energy transition.
- Three key milestones achieved in the last decade:
- Near-universal electrification through the Saubhagya scheme, with 97% of households electrified by 2020 (according to CEEW).
- Five-fold increase in installed renewable energy capacity, making India the fourth-largest globally in RE capacity.
- 40% drop in aggregate losses of power distribution companies, reaching an all-time low of about 15% in 2022-23.
- Despite these achievements, India faces challenges in rapidly decarbonizing its power system while ensuring quality and affordable power for consumers.
- India's power sector must prepare for increasing challenges, with annual electricity demand growing by 7-9% since the COVID-19 pandemic.
- Peak demand is rising even faster, exacerbated by climate change-induced weather extremes.
- Discoms face difficulties meeting unplanned surges with affordable options and existing network capacity, leading to power outages.
- To address these concerns:
- The government should raise targets for renewable energy and storage systems beyond 500 GW by 2030.
- Despite past efforts, renewable energy accounts for only 13% of India's power generation mix.
- Previous power shortages and rising energy demand have led to reliance on new coal capacity.
- The focus should shift to increasing the share of renewables in the power generation mix and scaling up storage solutions.
- Renewables and storage can support peak demand, are cost-competitive, and can be built faster.
- India needs faster deployment of diverse clean energy resources.
- China and the European Union have significantly outpaced India in adding solar and wind capacity.
- India's renewable capacity was 144 GW as of March, with 128 GW in the pipeline.
- Urgency in deploying clean resources requires tapping RE potential in more states, faster grid connectivity, and access to conflict-free land.
- Diversifying from solar energy to other clean technologies is necessary.
- Improving energy availability is crucial; only 6.3% of power generation in FY23 was procured through power exchanges.
- Low liquidity in power exchanges presents price volatility risks, restricting buyers and sellers and constraining the integration of renewables at scale.
- India needs innovation in bid designs to attract renewable energy (RE) developers to sell power in exchanges and set up capacities for long-term contracts.
- RE Implementation Agency-led bidding process could require developers to build part of project capacities for merchant sale.
- Effective maintenance and utilization of the coal fleet is crucial even as more renewables are added.
- Coal remains important, generating about 80% of power during non-solar hours in FY24.
- Over 40 GW of coal capacity was unavailable for nearly 60% of the time due to maintenance or technical faults.
- State regulators need to revise norms for timely coal fleet upkeep and compensate investments to make select coal plants flexible.
- Fast-track digitalization to empower discoms and consumers in India's energy transition.
- Smart meters enable accurate power demand forecasting, better network planning, and cost-effective renewable integration.
- Over 11 million smart meters installed, with significant progress in Bihar and Assam.
- India's smart metering drive aims for 250 million meters.
- Discoms need to overcome hesitation and follow the example of Bihar and Assam, which benefit from reduced losses and timely bill delivery.
- Ensure consumer privacy and system preparedness against cyberattacks in regulations and digitalization efforts.
- Government investment in a cleaner, flexible, and resilient power grid is crucial for sustainable economic growth and job creation in clean energy sectors.
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Saubhagya Scheme The Saubhagya Scheme, officially known as the Pradhan Mantri Sahaj Bijli Har Ghar Yojana, was launched by the Government of India in September 2017. The primary objective of this scheme is to provide universal household electrification across the country, aiming to ensure that all willing households, particularly in rural and urban areas, have access to electricity. Objectives
Key Features
Implementation
Impact
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On doorstep delivery of alcohol (06 Augst)
What are the arguments for and against online delivery of alcohol? How much of India consumes liquor? Can such a system make it safer for women to access alcohol? How should governments regulate liquor consumption?
- States like Delhi, Karnataka, Haryana, Punjab, Tamil Nadu, Goa, and Kerala are considering allowing alcohol delivery via platforms like Swiggy, BigBasket, and Zomato.
- Alcohol consumption in India has steadily increased, with per capita consumption rising from 1.6 litres (2003-2005) to 5.5 litres (2016-2018).
- India is the sixth-largest alcohol market worldwide, generating $52 billion in revenue.
- A 2019 survey indicated 16 crore alcohol users in the 10-75 age group in 2018.
- Medically, no amount of alcohol consumption is safe, causing 3 lakh deaths annually in India.
- Doorstep delivery of alcohol could generate significant revenue for Central and State governments through excise taxes.
- It may also reduce drunk-driving incidents and related road traffic fatalities, which range from 6-48% of total road deaths in India.
- A third argument for doorstep delivery of alcohol is that it may not threaten women's safety and might reduce on-premise violence against women, as seen in Kerala.
- Doorstep delivery could help women access alcohol without social stigma, but its effect on reducing violence against them is questionable due to rampant domestic violence related to alcohol use.
- Arguments against doorstep delivery include:
- The costs of alcohol use in India exceed the economic benefits from alcohol sales.
- Doorstep delivery assumes people will change their drinking behaviors, but this requires concrete evidence.
- Availability of alcohol on-demand can increase consumption, promote binge drinking, and lead to alcohol-related harms.
- It is not clear that doorstep alcohol delivery will reduce drunk-driving, as other effective measures include sobriety checkpoints, stringent penalties for repeat offenders, and improved public transport options.
- Alcohol is a carcinogen and causes at least seven types of cancer.
- Alcohol consumption increases the risk of injuries, substance abuse, mental illnesses, diabetes, liver disease, heart disease, and chronic kidney disease.
- Male alcohol misuse can increase the risk and severity of inter-partner violence.
- Treatment costs for alcohol-related diseases and injuries are expected to exceed ₹3 lakh crore from 2011 to 2050. Including productivity losses, the total cost could reach ₹121.3 lakh crore.
- Revenue from excise taxes on alcohol is only a fifth of the financial losses.
- The alcohol industry often lobbies against health warning labels and reduction policies, viewing low- and middle-income countries as emerging markets.
What can governments do?
- ational policies on alcohol, such as drunk driving laws and health warning labels, are in place, but most alcohol-use policies are managed by States, leading to varying approaches.
- States and Central governments can mitigate alcohol-related harms through measures like restricting availability and marketing, increasing taxes, enforcing drunk-driving laws, and investing in treatments for alcohol-use disorders.
- If doorstep delivery is implemented, States can adjust policies, such as raising prices and taxes, to influence consumer behavior.
- Governments should collaborate with health departments and organizations to monitor the impact of doorstep delivery on alcohol consumption.
- Companies offering doorstep delivery must provide accurate data to the government to assess health and economic impacts, and policies should be revised if harmful effects are observed.

Why was a customs duty hike imposed for lab chemicals?
What are the different kinds of chemicals which are imported into the country? How important are these chemicals for scientific research? Is Ethanol also imported into the country?
- The Finance Ministry has reversed a proposed customs duty increase on imported laboratory chemicals after backlash from scientists.
- Laboratory chemicals include imported chemicals, reagents, and enzymes essential for scientific research and medical diagnostics.
- They are used in experiments and making new products, and include items like oxidizers, corrosive acids, and compressed gases.
- Laboratory instruments such as funnels, beakers, test tubes, and burners are also related.
- These chemicals are regulated due to their varied properties and potential hazards.
- Laboratory chemicals are typically niche products and can be expensive.
- Customs defines them as chemicals imported in small quantities (up to 500 grams or milliliters) and intended solely for laboratory use.
What was the issue?
- The Budget documents on July 23 increased the Basic Customs Duty (BCD) on laboratory chemicals from 10% to 150%.
- Scientists discovered the increase when suppliers informed them that the cost of chemicals had risen significantly.
- For example, a batch of chemicals that previously cost ₹1,00,000 now costs ₹2,50,000.
- There was also a 25% increase in customs duty on plastic components used in laboratories.
- Researchers were shocked by the steep increase and some thought it might be a mistake.
- Senior scientists contacted the Ministry of Science and Technology for clarification, but customs duty issues are handled by the Ministry of Finance and the Commerce Ministry.
Why are imported chemicals a must
- India is a major manufacturer and exporter of complex chemicals but local demand isn't high enough to justify substantial investments in niche chemicals.
- Experimental research often requires exact materials used in foreign studies.
- The customs duty hike was not a mistake but was intended to limit imports of ethanol falsely labeled as 'laboratory chemicals' to avoid high duties.
- There are two types of ethanol: regular ethanol used in alcohol production and denatured ethanol used in laboratories.
- Denatured ethanol is typically produced locally and not usually imported.
- The Finance Ministry’s revised notification will revert the duty rate to the original but requires imported laboratory chemicals to come with a letter stating they will only be used for research and not for commercial purposes.

How time has been kept throughout history: from sundials to atomic clocks (06 August)
The world has come from keeping time with the Sun and the moon to atoms and their nuclei. Some physicists have even started work on the next-to-next generation of devices, called nuclear clocks
- Time is a fundamental part of reality, but fully understanding it remains a challenge at both large and small scales.
- Clocks measure and display the passage of time.
- Modern clocks have three main parts: a power source, resonator, and counter.
- Clocks track time by measuring a repeating event, often using a quartz crystal in modern versions.
- Ancient timekeeping methods included sundials (casting shadows), water clocks (measuring water levels), and hourglasses (using sand).
How did mechanical clocks work?
- Until the Middle Ages, water clocks were improved with additional components like tanks, gears, and pulleys, evolving into rudimentary analog computers.
- The 13th-century invention of the verge escapement mechanism marked a major advancement in mechanical clocks.
- The verge escapement used an escape wheel and balance wheel to move the clock hands at fixed intervals.
- Between the 15th and 18th centuries, spring-driven clocks were developed, replacing weights with coiled springs.
- Mechanisms like the fusee were introduced to maintain accurate force as the spring unwound.
- The combination of a balance spring with the balance wheel led to the creation of pocket watches.
- After each 'tick' motion, the balance spring returned the balance wheel to its neutral position, improving clock accuracy to losing minutes a day instead of hours.
- In the mid-17th century, Christiaan Huygens invented the pendulum clock, using a formula to convert the pendulum’s swings into time.
- The marine chronometer, developed in the next century, was crucial for ships to determine longitude accurately, as it required a precise clock onboard.
- Pendulum clocks were unsuitable for ships due to their rocking motion affecting accuracy.
- John Harrison built a marine chronometer in 1761 that was unaffected by a ship's rocking, gravity, or temperature changes, and won the British government's longitude prize.
- In the 19th century, electric clocks, powered by batteries or motors, improved clock efficiency.
- Modern clocks include quartz and atomic clocks, both with a power source, resonator, and counter.
- Quartz clocks use a quartz crystal as the resonator, which oscillates due to the piezoelectric effect. The oscillations are counted and converted into seconds.
- Quartz clocks are inexpensive and easy to make, leading to their widespread use in watches and wall-clocks from the mid-20th century.
What are atomic clocks?
- Atomic clocks use a laser as the power source and atoms of the same isotope as the resonator.
- The laser energizes the atoms to jump to a higher energy state; when they return to the lower state, they release radiation at a specific frequency.
- For example, caesium-133 atoms in a caesium atomic clock release radiation at a frequency of 9,192,631,770 Hz. Counting these waves measures time.
- Each atomic clock is a time standard, like the caesium atomic clock at India’s National Physical Laboratory, which maintains Indian Standard Time.
- Next-generation optical clocks, using strontium or ytterbium atoms, operate at higher frequencies (optical range) and are even more precise, not losing or gaining a second in over 10 billion years.
- Researchers are developing nuclear clocks with resonators based on atomic nuclei rather than whole atoms.
- Nuclei are more stable because they are shielded from external energy sources by electrons.
- Recent advancements include:
- A laser that excites thorium-229 nuclei to a higher energy state.
- Linking thorium-229 nuclear clocks with optical clocks.
- Precise estimation of excitation energy.
- The de-excitation frequency of thorium-229 nuclei is 2,020 terahertz, indicating very high precision.