Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 3-How IBC has fared so far?
Context
The IBC has started emerging stronger as it delivered on its promise, passed the constitutional muster, earned global recognition and became the preferred option for stakeholders in case of default.
Demystifying the myths surrounding IBC
Myths about recovery:
Most of the myths surround recovery. Consider the following example for quick appreciation.
- M/s. Synergies Dooray was the first company to be resolved under the IBC. It was with the Board of Industrial and Financial Reconstruction (BIFR) for over a decade.
- The realisable value of its assets was Rs 9 crore when it entered the IBC process. It, however, owed Rs 900 crore to the creditors.
- How much did IBC recover? The resolution plan yielded Rs 54 crore for them.
- Some condemned IBC because the resolution plan yielded a meagre 6 per cent of the claims of the creditors, disregarding the fact that they recovered 600 per cent of the realisable value of the company, which had been in the sick bed for over a decade.
- If the company was liquidated, assuming no transaction costs, the creditors would have got at best Rs 9 crore — 1 per cent of their claims.
The myth that recovery under IBC is dismal
- Let’s examine the myth that the recovery through resolution plans is dismal.
- Two hundred companies had been rescued till December 2019 through resolution plans.
- They owed Rs 4 lakh crore to creditors. However, the realisable value of the assets available with them, when they entered the IBC process, was only Rs 0.8 lakh crore.
- The IBC maximises the value of the existing assets, not of the assets which do not exist. Under the IBC, the creditors recovered Rs 1.6 lakh crore, about 200 per cent of the realisable value of these companies.
- Why creditors had to take a haircut? Despite the recovery of 200 per cent of the realisable value, the financial creditors had to take a haircut of 57 per cent as compared to their claims. This only reflects the extent of value erosion that had taken place when the companies entered the IBC process.
- What is the conclusion? As compared to other options, banks are recovering much better through IBC, as per RBI data.
The myth that IBC is sending companies for liquidation:
-
- What is the primary objective of IBC: Recovery is incidental under the IBC. Its primary objective is rescuing companies in distress.
- More number of companies sent for liquidation: There is a myth that although the IBC process has rescued 200 companies, it has sent 800 companies for liquidation. The number of companies getting into liquidation is thus four times that of the companies being rescued.
- The context for the numbers: Numbers, however, to be seen in context. The companies rescued had assets valued at Rs 0.8 lakh crore, while the companies referred for liquidation had assets valued at Rs 0.2 lakh crore when they entered the IBC process.
- Looking from the value term angle: In value terms, assets that have been rescued are four times those sent for liquidation. It is important to note that of the companies rescued, one-third were either defunct or under BIFR, and of the companies sent for liquidation, three-fourths were either defunct or under BIFR.
The myth that IBC is resulting in huge job losses
- The next myth is that the IBC is resulting in huge job losses through liquidation. It is misconstrued that 600 companies — for which data are available and which have proceeded for liquidation — have assets (and consequently employment) at least equal to the aggregate claim of the creditors — Rs 4.6 lakh crore.
- Unfortunately, they have assets on the ground valued only at Rs 0.2 lakh crore.
- Take the examples of Minerals Limited and Orchid Healthcare Private Limited, which have been completely liquidated. They owed Rs 8,163 crore, while they had absolutely no assets and employment.
- What matters in this context is the assets a company has or the employment it provides — not how much it owes to creditors.
- The IBC process would release the idle or under-utilised assets valued at Rs 0.2 lakh crore, which would have dissipated with time, for business and employment.
- One also needs to consider the jobs saved through the rescue of 80 per cent of the distressed assets, and the job being created by these companies, post-rescue.
What changes IBC has brought?
- Changed the behaviour of debtors: A distressed asset has a life cycle. Its value declines with time if the distress is not addressed.
- The credible threat of the IBC process, that a company may change hands, has changed the behaviour of debtors.
- Debtors are settling debt at an early stage: Thousands of debtors are settling defaults at the early stages of the life cycle of a distressed asset.
- They are settling when the default is imminent, on receipt of a notice for repayment but before filing an application, after filing the application but before its admission, and even after admission of the application.
- These stages are akin to preventive care, primary care, secondary care, and tertiary care with respect to sickness. Only a few companies, who fail to address the distress in any of these stages, reach the liquidation stage.
- Value erosion at the liquidation stage: The value of the company is substantially eroded, and hence some of them would be rescued, while others are liquidated.
- The recovery may be low at this stage, but in the early stages of distress, it is much higher — primarily because of the IBC.
- The percentage of companies or distressed assets getting into liquidation is insignificant.
- Stakeholders should increasingly address the distress in the early stages and the best use of the IBC would be not using it all.
Conclusion
Stakeholders who understand business and have the backing of sophisticated professionals are using IBC with open eyes after evaluating all options. There is no reason to doubt their commercial wisdom. The 25,000 applications filed so far under IBC indicate the value and trust that stakeholders place on the law — the ultimate test of its efficacy.
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The stock markets in India are witnessing historic single-day falls with an increase in the number of COVID-19 cases. Since the indexes plunged more than 10 per cent each day earlier, a circuit breaker was triggered for the first time since 2009 halting trading.
What are circuit breakers?
- In June 2001, the SEBI implemented index-based market-wide circuit breakers.
- Circuit breakers are triggered to prevent markets from crashing, which happens when market participants start to panic induced by fears that their stocks are overvalued and decide to sell their stocks.
- This index-based market-wide circuit breaker system applies at three stages of the index movement, at 10, 15 and 20 per cent.
- When triggered, these circuit breakers bring about a coordinated trading halt in all equity and equity derivative markets nationwide.
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Scientists have found the skull of a 99-million-year-old flying dinosaur that is tinier than the tiniest bird known to humans.
- The bird-like dinosaur was found stuck in a gob of tree resin that eventually hardened into amber, preserving it for millions of years to come.
- The fossil was dug up in 2016 from a mine in Myanmar. It was so slight; it likely weighed just 2 grams.
- The dinosaur skull holds around 100 sharp teeth, which hints at its ferocious nature despite its small size.
- It even had teeth in the back of its jaw, under its eye.
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The last two days, a number of states in India have enforced measures aimed at reducing public gatherings. This is called “social distancing”.
How does social distancing work?
- To stem the speed of the coronavirus spread so that healthcare systems can handle the influx, experts are advising people to avoid mass gatherings.
- Offices, schools, concerts, conferences, sports events, weddings, and the like have been shut or cancelled around the world, including in a number of Indian states.
- An advisory by the US Centers for Disease Control recommends social distancing measures such as: reducing the frequency of large gatherings and limiting the number of attendees; limiting inter-school interactions; and considering distance or e-learning in some settings.
What is the objective of such restrictions?
- Compared to deadlier diseases such as bird flu, or H5N1, coronavirus is not as fatal —which ironically also makes it more difficult to contain.
- With milder symptoms, the infected are more likely to be active and still spreading the virus.
- For example, more than half the cases aboard a cruise ship that has docked in California did not exhibit any symptoms.
- In a briefing on March 11, WHO officials said, “Action must be taken to prevent transmission at the community level to reduce the epidemic to manageable clusters.”
- The main question for governments is to reduce the impact of the virus by flattening the trajectory of cases from a sharp bell curve to an elongated speed-bump-like curve.
- This is being called “flattening the curve”. How does ‘flattening the curve’ help?
- Limiting community transmission is the best way to flatten the curve.
What was the curve like in China?
- The numbers show that the virus spread within Hubei exponentially but plateaued in other provinces.
- Some say it’s because many of these countries learnt from the 2003 SARS epidemic.
- Just as Chinese provinces outside of Hubei effectively stemmed the spread in February, three other countries —South Korea, Italy, and Iran — were not able to flatten the curve.
Flattening The Curve
- In epidemiology, the idea of slowing a virus’ spread so that fewer people need to seek treatment at any given time is known as “flattening the curve.”
- It explains why so many countries are implementing “social distancing” guidelines — including a “lockdown” order that affects 1.3 billion people in India, even though COVID-19 outbreaks in various places might not yet seem severe.
What is the curve?
- The “curve” researchers are talking about refers to the projected number of people who will contract COVID-19 over a period of time.
- To be clear, this is not a hard prediction of how many people will definitely be infected, but a theoretical number that’s used to model the virus’ spread. Here’s what one looks like:
- The curve takes on different shapes, depending on the virus’s infection rate.
- It could be a steep curve, in which the virus spreads exponentially (that is, case counts keep doubling at a consistent rate), and the total number of cases skyrockets to its peak within a few weeks.
- Infection curves with a steep rise also have a steep fall; after the virus infects pretty much everyone who can be infected, case numbers begin to drop exponentially, too.
- The faster the infection curve rises, the quicker the local health care system gets overloaded beyond its capacity to treat people.
- As we’re seeing in Maharashtra or Ahmedabad, more and more new patients may be forced to go without ICU beds, and more and more hospitals may run out of the basic supplies they need to respond to the outbreak.
- A flatter curve, on the other hand, assumes the same number of people ultimately get infected, but over a longer period of time.
- A slower infection rate means a less stressed health care system, fewer hospital visits on any given day and fewer sick people being turned away.
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Researchers from the Indian Institute of Geomagnetism have found the mighty Himalayas subside and move up depending on the seasonal changes in groundwater.
Tectonic activity and groundwater
- The Himalayan foothills and the Indo-Gangetic plain are sinking because its contiguous areas are rising due to tectonic activity associated with landmass movement or continental drift.
- The new study shows that subsidence and uplift are found to be associated with seasonal changes in groundwater, apart from the normal, common reasons.
- Water acts as a lubricating agent, and hence when there is water in the dry season, the rate of the slip of the fault in this region is reduced.
- In the Himalaya, seasonal water from glaciers, as well as monsoon precipitation, plays a key role in the deformation of the crust and the seismicity associated with it.
- The subsidence rate is associated with groundwater consumption.
Findings of the study
- The researchers have made the combined use of GPS and Gravity Recovery And Climate Experiment (GRACE) data, which has made it possible for them to quantify the variations of hydrologic mass.
- The GRACE satellites, launched by the US in 2002, monitor changes in water and snow stores on the continents.
- The combined data suggest a 12% reduction in the rate of the subsurface slip. This slip refers to how fast the fault is slipping relative to the foot and hanging wall.
- The slip occurs at the Main Himalayan Thrust (MHT), due to hydrological variations and human activities, over which there is the periodic release of accumulated strain.
About GRACE Mission
- The Gravity Recovery and Climate Experiment (GRACE) was a joint mission of NASA and the German Aerospace Center.
- Twin satellites took detailed measurements of Earth’s gravity field anomalies from its launch in March 2002 to the end of its science mission in October 2017.
- By measuring gravity anomalies, GRACE showed how mass is distributed around the planet and how it varies over time.
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The WCD Minister has informed about some progress in the National Creche Scheme. As of today, 6453 creches are functional across the country under the Scheme.
National Creche Scheme
- Earlier named as Rajiv Gandhi National Creche Scheme, the NCS is being implemented as a Centrally Sponsored Scheme through States/UTs with effect from 1.1.2017.
- It aims to provide daycare facilities to children (age group of 6 months to 6 years) of working mothers.
Salient features of the Scheme
- Daycare Facilities including Sleeping Facilities.
- Early Stimulation for children below 3 years and pre-school education for 3 to 6 years old children.
- Supplementary Nutrition ( to be locally sourced)
- Growth Monitoring
- Health Check-up and Immunization
Further, the guidelines provide that :
- Crèches shall be open for 26 days in a month and for seven and a half (7-1/2) hours per day.
- The number of children in the crèche should not be more than 25 per crèche with 01 Worker and 01 helpers respectively.
- User charges to bring in an element of community ownership and collected as under:
- BPL families – Rs 20/- per child per month.
- Families with Income (Both Parents) of up to Rs. 12,000/- per month – Rs. 100/- per child per month
- Families with Income (Both Parents) of above Rs. 12,000/- per month – Rs. 200/- per child per month.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- India's handling of coronavirus pandemic.
Context
Cooperation between the Centre and the States in dealing with the threat of the virus is commendable.
Hope in dealing with the pandemic and India’s response to the pandemic
- What is the best response? World Health Organisation declared it a pandemic, Secretary-General offered hope: “If countries detect, test, treat, isolate, trace, and mobilise their people in the response, those with a handful of cases can prevent those cases becoming clusters, and those clusters becoming community transmission.”
- The advantage with India: India, with 70-odd cases, has the advantage, and commendably, the central and state governments have reacted rapidly to the developing pandemic
- Equally importantly, they have set aside the acrimony over the CAA-NRC question and pulled together, without the need for external urging.
- Because everyone realises that COVID-19 is everyone’s problem.
- Steps taken by the government: No visas are being issued, screening is in progress, health education messaging is visible, public gatherings are sharply reduced and there is no sign of the wearying political blame game which generally besets such challenges.
No room for complacency
- Display of political will: The secretary-general has also cautioned that while many nations can avoid the pandemic, the operative verb is not “can” but “will”. The Indian response has displayed political will, but there is no room for complacency.
- Fear of the unknown: This is the first coronavirus to reach pandemic levels. For at least 18 months, no vaccine can be market-ready. At least until the summer, there will be insufficient information about the behaviour of the organism in the wild. Wisely, Homo sapiens fears the unknown.
- Caution is the best prescription: Until we learn more about the nature of the beast, abundant caution is the only credible prescription.
- Isolation at the focus of the response: At present, the focus of the response is isolation (including self-isolation) and the maintenance of sanitation barriers. Schools have been closing down, some workplaces are screening staff, and people are discouraged from leaving home without a compelling reason.
- However, outside the controlled conditions in homes and hospitals, maintaining the patency of the sanitation barrier requires extraordinary vigilance and self-control.
Status of healthcare infrastructure
- The readiness of healthcare facilities: In the case of breaches — a few oversights or accidents are inevitable — the readiness of healthcare facilities would become a serious factor in controlling mortality.
- Variation in states’ preparedness: The quality of the states’ level of preparedness and the quality of health services varies. While Kerala efficiently controlled the Nipa virus, Uttar Pradesh, the most populous state, has failed to contain annual outbreaks of Acute Encephalitis Syndrome for over a decade.
- And the capital’s initial failure in the face of seasonal waves of lethal mosquito-borne diseases cannot be forgotten.
- Rural cluster-most vulnerable: How much less protected would a rural cluster be, serviced by a poorly equipped primary health centre?
Conclusion
If community transmission becomes commonplace, it would become a difficult battle. Hence, the sanitation barrier remains the most reliable epidemiological response. If the government has to resurrect primordial provisions from the era of bubonic plagues to keep it patent, so be it.
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Paper 3- Performance of agriculture sector, is the worst over for it?
Context
Estimates of gross domestic product (GDP) released on 28 February confirmed that India’s economy is decelerating. The silver lining was growth in agriculture, which accelerated for the third quarter in a row to 3.5%.
How agriculture sector has performed in the last few years?
- Robust growth in the last 5 years: A look at the national accounts for a longer period shows robust agricultural growth during the first five years.
- With agriculture growing at 3.17% per annum between 2013-14 and 2019-20.
- This is remarkable, given that the broader economy is witnessing a slowdown.
- Rural economy seen from the other indicators: A variety of other indicators show that the rural economy has been going through possibly its worst phase, with declining wage growth and farmer incomes causing serious distress.
Crop sector growth rate at lowest
- A clue to this disconnect between the national accounts and other indicators lies in a breakdown of the national accounts.
- Crop sector growing at lowest in two decades: The GDP data for the agricultural sector shows that the crop sector, which accounts for 56% of total agricultural output and employs a majority of the farmers, has been growing at only 0.3%, the lowest in two decades.
- By comparison, the sector grew 3.3% per annum during the 10 years under United Progressive Alliance governments.
- Which sector of agri. is growing at a high rate? The agricultural sub-sectors that showed high growth between 2013-14 and 2018-19 were livestock (8.1%), forestry (3.1%) and fisheries (10.9%).
- It is a puzzle what drove the high growth of livestock at a time when the crop sector was experiencing negligible growth.
- The trend defies the logic: This defies past trends and is also difficult to believe, given contrasting trends in other indicators of livestock
- The declining income of farmers and a decline in wages: The poor performance of the crop sector confirms the declining income of farmers, the majority of whom depend on crops for subsistence. Not surprisingly, even real rural wages are declining.
- Inflationary pressure and hopes of growth in income of farmers: Hopes were kindled in the last three months as agricultural commodities showed signs of inflationary pressures, with food inflation hitting double-digit rates.
- Increase in rural demand not the cause of inflation: A careful analysis of the data rules out rising rural demand as the cause of that inflationary trend.
- Many price pressures were due to the mismanagement of cereal supplies by the government and supply shocks in vegetables.
- In such circumstances, farmer income could not have risen. Some of this was also a result of food prices rising internationally.
Trend pointing to the fall in agri. prices
- Softening of food prices: Recent trends in international markets suggest a softening of food prices led by an overproduction of cereals and easing edible oil inflation. Following 3 factors may contribute to its fall.
- Impact of fall in crude oil price: This trend will gain strength in the wake of the recent slide in crude oil prices.
- With the global economy displaying signs of a slowdown, prices of agricultural commodities are likely to fall sharply.
- Relation of food prices with oil prices: They tend to follow movements in crude oil prices, as was seen during the latter’s collapse in August 2014. In all likelihood, a similar decline in agricultural prices is upon us.
- Food-grain stock with FCI: A second factor that may exacerbate the income troubles in agriculture is the presence of massive food-grain stocks with the Food Corporation of India.
- This may slow the procurement of farm produce and lower price realizations, particularly cereals but also other crops.
- The coronavirus outbreak: Lastly, the global slowdown due to the coronavirus outbreak is likely to dampen demand in the economy, and in turn hurt the agricultural sector.
Conclusion
- Limited room to improve the situation: These factors are likely to worsen agricultural incomes, and domestic policy has limited room to manoeuvre.
- Opportunity to revive the demand: This situation is also an opportune time to revive rural demand The government could pass on some of the windfalls from the drop in oil prices to rural consumers. This could help lift rural incomes.
- The government could also increase spending in rural areas to help boost demand and prevent a collapse in agricultural prices.
- Worst for agriculture is not yet over: Whether the government uses the opportunity or fritters it away again will be known in the coming months. What appears certain for now, though, is that the worst of the rural slowdown is far from over.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- International cooperation on dealing with the epidemic.
Context
The Chinese government has mobilised the whole nation with confidence, unity, a science-based approach and targeted response.
Aspects that were focused by China to deal with COVID-19
- Formulated timely strategies for epidemic prevention and control.
- Strengthened a unified command and response in Wuhan and Hubei.
- Coordinated the prevention and control work in other regions.
- Strengthened scientific research, emergency medical and daily necessity supplies.
- Effectively maintained social stability.
- Strengthened public education.
- Actively engaged in international cooperation.
Mutual support between India and China
- China and India have maintained close communication and cooperation on epidemic prevention and control. In a letter to President Xi, India’s Prime Minister has expressed support for China.
- China appreciates the medical supplies provided by India and have helped facilitate the safe return of Indian nationals in Hubei.
- The global footprint of COVID-19: China has been closely following the global footprint of COVID-19.
Cooperation on a global level for disease control:
- Chines govt. will stay in close communication with WHO.
- Share its epidemic control experience with other countries.
- Seek closer international cooperation on medicine and vaccine development.
- Provide assistance to the best of its capabilities to countries and regions that are affected by the spread of the virus in keeping with its role as a responsible major
- The Chinese reach-out: China has provided various kinds of assistance including testing reagents, remote assistance and medical supplies to countries with a severe outbreak.
- Sharing of experience and protocol for treatment: China have shared diagnosis and treatment experience and protocols with many countries including India.
- China is ready to maintain communication with India, share experience in a timely manner, render assistance and make joint efforts to overcome the epidemic.
Impact and recovery of China
- Robust economy: The impact on the Chinese economy will be short-lived and generally manageable. China has a resilient economy with robust domestic demand and a strong industrial base. We will definitely sustain the good momentum of economic and social development and meet the goal of achieving moderate prosperity in our society and eradicating extreme poverty in China.
- Strengthen coordination and communication: China will also strengthen coordination and communication with economic and trading partners and give priority to the resumption of production and supply of leading enterprises and key sectors that have a major impact on the stability of global supply chains.
- The fundamentals of China’s economy will remain strong in the long run, and China will remain an important engine for global economic growth.
Conclusion
The history of civilisation is also one of a history of fighting diseases and a great journey of ceaseless global integration. To prevail over a disease that threatens all, unity and cooperation is the most powerful weapon.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: EIA in India
Mains level: Read the attached story
A set of key updates to India’s Environment Impact Assessment (EIA) Act has been proposed to reduce the time given to people to air objections.
Features proposed by the amendment
- The draft EIA notification proposes to be an update to the EIA of 2006, which specifies a “minimum of 30 days” for people to respond.
- The current version of the update, which will likely become law in 60 days, gives a “minimum of 20 days” of notice period.
- The public hearing process is considered a key component of the EIA. An organisation has to submit a detailed plan, as part of the EIA process that details the nature, need, potential impact and remedial measures, if their proposed infrastructure project threatens to significantly impact a region.
- It also requires that the public-hearing process be wrapped up in 40 days, as opposed to the existing norm of 45 days.
Environmental Impact Assessment (EIA) in India
- EIA is a management tool to minimize adverse impacts of developmental projects on the environment and to achieve sustainable development through timely, adequate, corrective and protective mitigation measures.
- The MoEFCC uses EIA Notification 2006 as a major tool for minimizing the adverse impact of rapid industrialization on the environment and for reversing those trends which may lead to climate change in long run.
- EIA has now been made mandatory under the Environmental (Protection Act, 1986 for 29 categories of developmental activities involving investments of Rs. 50 crores and above.
EIA stages
- Screening: This stage decides which projects a full or partial assessment need study.
- Scoping: This stage decides which impacts are necessary to be assessed. This is done based on legal requirements, international conventions, expert knowledge and public engagement. This stage also finds out alternate solutions that avoid or at least reduce the adverse impacts of the project.
- Assessment & evaluation of impacts and development of alternatives: This stage predicts and identifies the environmental impacts of the proposed project and also elaborates on the alternatives.
- EIA Report: In this reporting stage, an environmental management plan (EMP) and also a non-technical summary of the project’s impact is prepared for the general public. This report is also called the Environmental Impact Statement (EIS).
- Decision making: The decision on whether the project is to be given approval or not and if it is to be given, under what conditions.
- Monitoring, compliance, enforcement and environmental auditing: This stage monitors whether the predicted impacts and the mitigation efforts happen as per the EMP.
Scope of Environmental Clearance (EC)
- Environmental clearance is required in respect of all new projects or activities listed in the Schedule to the 2006 notification and their expansion and modernization, including any change in product –mix.
- Since EIA 2006 the various developmental projects have been re-categorised into category ‘A’ and category ‘B’ depending on their threshold capacity and likely pollution potential.
- They require prior EC respectively from MOEFCC or the concerned State Environmental Impact Assessment Authorities (SEIAAs).
- Where state level authorities have not been constituted, the clearance would be provided by the MOEFCC.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Coronovirus outbreak
What is the news: The World Health Organization (WHO) has declared the COVID-19 outbreak a pandemic.
What is a pandemic?
- Simply put, a pandemic is a measure of the spread of a disease.
- When a new disease spreads over a vast geographical area covering several countries and continents, and most people do not have immunity against it, the outbreak is termed a pandemic.
- It implies a higher level of concern than an epidemic, which the US Centers for Disease and Control Prevention (CDC) define as the spread of a disease in a localised area or country.
- There is no fixed number of cases or deaths that determine when an outbreak becomes a pandemic.
- The Ebola virus, which killed thousands in West Africa, is an epidemic as it is yet to mark its presence on other continents.
- Other outbreaks caused by coronaviruses such as MERS (2012) and SARS (2002), which spread to 27 and 26 countries respectively, were not labelled pandemics because they were eventually contained.
Which outbreaks have been declared pandemics in the past?
- A major example is the Spanish flu outbreak of 1918, which killed between 20-50 million.
- Cholera pandemics have been declared multiple times between 1817 and 1975.
- In 1968, a pandemic was declared for H3N2 that caused about a million deaths.
- The last pandemic declared by the WHO was in 2009, for H1N1.
Does the declaration change the approach to the disease?
- Describing the situation as pandemic does not change WHO’s assessment of the risk posed by the virus. However, the categorization as a pandemic can lead to more government attention.
- The categorization by WHO indicates the risk of disease for countries to take preventive measures.
- It will help improve funding by international organisations to combat coronavirus.
Difference Between Endemic, Epidemic, Outbreak and Pandemic:
- AN EPIDEMIC is a disease that affects a large number of people within a community, population, or region.
- A PANDEMIC is an epidemic that’s spread over multiple countries or continents.
- ENDEMIC is something that belongs to a particular people or country.
- AN OUTBREAK is a greater-than-anticipated increase in the number of endemic cases. It can also be a single case in a new area. If it’s not quickly controlled, an outbreak can become an epidemic.
- A simple way to know the difference between an epidemic and a pandemic is to remember the “P” in the pandemic, which means a pandemic has a passport. A pandemic is an epidemic that travels.
- An epidemic is actively spreading; new cases of the disease substantially exceed what is expected.
- More broadly, it’s used to describe any problem that’s out of control, such as “the opioid epidemic.”
- An epidemic is often localized to a region, but the number of those infected in that region is significantly higher than normal.
- For example, when COVID-19 was limited to Wuhan, China, it was an epidemic. The geographical spread turned it into a pandemic.
- Endemics, on the other hand, are a constant presence in a specific location.
- Malaria is endemic to parts of Africa. Ice is endemic to Antarctica.
- Going one step farther, an endemic can lead to an outbreak, and an outbreak can happen anywhere.
- Last summer’s dengue fever outbreak in Hawaii is as an example. Dengue fever is endemic to certain regions of Africa, Central and South America, and the Caribbean. Mosquitoes in these areas carry dengue fever and transmit it from person to person.
- But in 2019 there was an outbreak of dengue fever in Hawaii, where the disease is not endemic. It’s believed an infected person visited the Big Island and was bitten by mosquitoes there.
- The insects then transferred the disease to other individuals they bit, which created an outbreak.
You can see why it’s so easy to confuse these terms. They’re all related to one another and there’s a natural ebb and flow between them as treatments become available and measures for control are put in place — or as flare-ups occur and disease begins to spread.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Methanotrophs
Mains level: Methane emission
Scientists at Agharkar Research Institute (ARI), Pune have isolated 45 different strains of methanotrophic bacteria which have been found to be capable of reducing methane emissions from rice plants.
What are Methanotrophs?
- They are bacteria that metabolize and convert methane into carbon-di-oxide.
- They can effectively reduce the emission of methane, which is the second most important greenhouse gas (GHG) and 26 times more potent as compared to carbon-di-oxide.
- In rice fields, Methanotrophs are active near the roots or soil-water interfaces.
- Besides methane mitigation studies, Methanotrophs can also be used in methane value addition (valorization) studies.
- Bio-methane generated from waste can be used by the Methanotrophs and can be converted to value-added products such as single-cell proteins, carotenoids, biodiesel, and so on.
Why rice fields?
- Rice fields are human-made wetlands and are waterlogged for a considerable period. Anaerobic degradation of organic matter results in the generation of methane.
- Rice fields contribute to nearly 10% of global methane emissions.
- Very few studies in the world have focused on Methanotrophs from tropical wetlands or tropical rice fields.
- Practically no cultures of indigenously isolated Methanotrophs from India were available.
- Native and relevant Methanotrophs isolated from rice fields can be excellent models to understand the effect of various factors on methane mitigation.
Must read:
https://www.civilsdaily.com/news/greenhouse-gas-emissions-from-indian-paddy-fields-very-high-ny-based-study/
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Mining regulations in India
Parliament has passed The Mineral Laws (Amendment) Bill, 2020 for amendments in Mines & Mineral (Development and Regulation) Act 1957 and The Coal Mines (Special Provisions) Act, 2015. The bill will transform the mining sector in the country boosting coal production and reducing dependence on imports.
Acts to be amended
- The MMDR Act regulates the overall mining sector in India.
- The CMSP Act provides for the auction and allocation of mines whose allocation was cancelled by the Supreme Court in 2014.
- Schedule I of the Act provides a list of all such mines; Schedule II and III are sub-classes of the mines listed in the Schedule I.
- Schedule II mines are those where production had already started then, and Schedule III mines are ones that had been earmarked for a specified end-use.
Features of the Mineral Laws (Amendment) Bill, 2020
Removal of restriction on end-use of coal
- Currently, companies acquiring Schedule II and Schedule III coal mines through auctions can use the coal produced only for specified end-uses such as power generation and steel production.
- The Bill removes this restriction on the use of coal mined by such companies.
- Companies will be allowed to carry on coal mining operation for own consumption, sale or for any other purposes, as may be specified by the central government.
Eligibility for auction of coal and lignite blocks
- The Bill clarifies that the companies need not possess any prior coal mining experience in India in order to participate in the auction of coal and lignite blocks.
- Further, the competitive bidding process for auction of coal and lignite blocks will not apply to mines considered for allotment to:
- a government company or its joint venture for own consumption, sale or any other specified purpose; and
- a company that has been awarded a power project on the basis of a competitive bid for tariff.
Composite license for prospecting and mining
- Currently, separate licenses are provided for prospecting and mining of coal and lignite, called prospecting license, and mining lease, respectively.
- Prospecting includes exploring, locating, or finding mineral deposit. The Bill adds a new type of license, called prospecting license-cum-mining lease.
- This will be a composite license providing for both prospecting and mining activities.
Non-exclusive reconnaissance permits holders to get other licenses
- Currently, the holders of non-exclusive reconnaissance permit for exploration of certain specified minerals are not entitled to obtain a prospecting license or mining lease.
- Reconnaissance means preliminary prospecting of a mineral through certain surveys.
- The Bill provides that the holders of such permits may apply for a prospecting license-cum-mining lease or mining lease. This will apply to certain licensees as prescribed in the Bill.
Transfer of statutory clearances to new bidders
- Currently,upon expiry, mining leases for specified minerals (minerals other than coal, lignite, and atomic minerals) can be transferred to new persons through auction.
- This new lessee is required to obtain statutory clearances before starting mining operations.
- The Bill provides that the various approvals, licenses, and clearances given to the previous lessee will be extended to the successful bidder for a period of two years.
Reallocation after termination of the allocations
- The CMSP Act provides for the termination of allotment orders of coal mines in certain cases.
- The Bill adds that such mines may be reallocated through auction or allotment as may be determined by the central government.
- The central government will appoint a designated custodian to manage these mines until they are reallocated.
Prior approval from the central government
- Under the MMDR Act, state governments require prior approval of the central government for granting reconnaissance permit, prospecting license, or mining lease for coal and lignite.
- The Bill provides that prior approval of the central government will not be required in granting these licenses for coal and lignite, in certain cases.
- These include cases where: (i) the allocation has been done by the central government, and (ii) the mining block has been reserved to conserve a mineral.
Advance action for auction
- Under the MMDR Act, mining leases for specified minerals (minerals other than coal, lignite, and atomic minerals) are auctioned on the expiry of the lease period.
- The Bill provides that state governments can take advance action for auction of a mining lease before its expiry.
With inputs from PRS India
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Sahyadri Megha
Mains level: Not Much
The University of Agricultural and Horticultural Sciences (UAHS), Shivamogga (K’taka) has developed ‘Sahyadri Megha’, a new red variety of paddy that is resistant to blast (a fungal disease) and rich in nutrients.
Sahyadri Megha
- It is a red variety of paddy that is resistant to blast disease and rich in nutrients.
- It was developed under the hybridization breeding method by cross-breeding the best among the ‘Jyothi’ variety with that of ‘Akkalu’, a disease-resistant and protein-rich paddy variety.
- The new variety will be notified under the Indian Seed Act 1966 shortly after which it will become part of the seed chain.
Key features
- The protein content in it is 12.48%, higher than the other red rice varieties grown.
- The yield per hectare from ‘Sahyadri Megha’ is around 65 quintals, substantially higher than other red paddy varieties.
- It is a medium-term paddy that can be grown when there is a delay in the onset of monsoon. It can be harvested after 120 days of sowing.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- Transparency in judiciary under RTI
Context
A recent Supreme Court verdict has barred citizens from accessing court records under the RTI Act.
What does the judgement say?
- No access to court records through RTI: In its recent decision, in the Chief Information Commissioner v. High Court of Gujarat case, the Supreme Court, regrettably, barred citizens from securing access to court records under the Right to Information (RTI) Act.
- Access to record through rules of High Courts: Instead, the court held that such records can be accessed only through the rules laid down by each High Court under Article 225 of the Constitution.
- The Registry of the Supreme Court was litigating a similar case (Registrar, Supreme Court of India v. R.S. Misra) before the Delhi High Court for several years.
- Separating the administrative and judicial side: Though the particular decision taken earlier this month does not preclude the application of the RTI Act to the administrative side of the court, it does firmly slam the door shut on accessing, under the RTI Act, the millions of court records filed on the judicial side.
Why access to judicial records matters?
- For holding the police accountable: A significant number of decisions taken by the courts influence our daily life. Every prosecution before a criminal court is essentially an opportunity to hold the police accountable just as every writ petition is an opportunity to hold the government accountable.
- Opportunity to learn about commercial translations: A significant number of commercial lawsuits are opportunities to learn more about corporations and the manner in which commercial translations are executed in the country.
- Policy decision impacted by the judiciary in PIL: In cases of public interest litigation, where the courts indulge in policymaking on the basis of the report of an amicus curiae or an expert committee set up by judges.
- The reports of these committees are not accessible to third parties, though they may be impacted by these decisions, because they form part of the court record and are hence outside the purview of the RTI Act.
- No question of confidentiality: There is no question of arguing for the confidentiality of these records because it is by now a well-recognised principle that all judicial proceedings must take place in open court, unless prohibited by law for reasonable purposes.
The overriding section of RTI act- Section 22
- The Supreme Court’s verdict in this case hinged on Section 22 of the RTI Act which states that the RTI Act shall override any other law to the extent that the latter is inconsistent with the former.
- The Section states: “Act to have an overriding effect — The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in the Official Secrets Act, 1923 (19 of 1923), and any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act.”
- Non-obstante clause: A clause such as Section 22 is known as non-obstante clause and is a common drafting device used by legislatures to permit certain actions regardless of what is mentioned in existing legislation.
- Drafters aware of the possible conflict: The wording of the provision reveals that the drafters of the RTI Act were clearly aware that it may conflict with other laws and wanted to ensure that the procedure under the Act overruled the procedure in existing legislation.
- Despite this crystal-clear wording of Section 22, the Supreme Court and, on previous occasions, the High Courts, have concluded exactly the opposite.
Three steps to the courts reasoning
- No inconsistency: It concludes that there is no inconsistency between the RTI Act and the court rules.
- This is factually incorrect because the Gujarat High Court Rules unlike the RTI Act require the submission of an affidavit stating the purpose of seeking copies of the pleadings.
- The RTI Act requires no reasons to be provided while seeking information.
- Issue over non-obstante clause: The court argues that “A special enactment or rule cannot be held to be overridden by a later general enactment simply because the latter opens up with a non-obstante clause unless there is a clear inconsistency between the two legislations.”
- But that is exactly the point of an non-obstante clause.
- The accompanying factual inaccuracy, is its conclusion that there is no inconsistency between the Gujarat High Court rules and the RTI Act.
- Section 22 can’t be read to imply repeal of the laws: The third limb, of the court’s reasoning was its conclusion that Section 22 could not be read in a manner to imply repeal of other laws, such as the Gujarat High Court Rules.
- The court states that if the intention was to repeal another law, the legislature would have specifically stated so in the RTI Act, as was done in Section 31 when the RTI Act repealed the previous Freedom of Information Act, 2002.
- This reasoning is bewildering because it would render non-obstante clauses entirely useless.
What is the issue arising out of this judgement?
- From a citizen’s perspective, this decision is problematic for two reasons.
- Not all High Courts allow access to all: Most High Court Rules allow only parties to a legal proceeding to access the records of a case. Some High Courts may allow third parties to access court records if they can justify their request.
- This is entirely unlike the RTI Act, where no reasons are required to be provided thereby vastly reducing the possibility of administrative discretion.
- Logistical difficulties: The second reason this judgment spells bad news is that unlike the RTI Act, the procedure under the Rules of most High Courts is challenging from a logistical perspective, apart from lacking in any significant safeguards.
- An application under the RTI Act can be made by post, with the fee being deposited through a postal order.
- The procedure is simple enough to enable most citizens to file RTI applications by themselves.
- Not so for the procedure under the High Court Rules.
- Most courts require the physical filing of an application: Most High Courts and the Supreme Court require the physical filing of an application with the Registry, and a hearing before a judge to determine whether records should be given.
Conclusion
The Supreme Court fails to understand that the judiciary’s track record of transparency is vastly inferior when compared to other arms of the state. In today’s world where every public institution is striving to become more transparent, the continued resistance from the judiciary to making itself transparent in a meaningful manner will have an eroding effect on its legitimacy.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- India-Afghanistan relations and return of Taliban after deal with the US.
Context
The recently negotiated peace deal between the United States and the Taliban is unlikely to bring peace to Afghanistan, is geopolitically disadvantageous for India, and has serious implications for our national security.
Power dynamics of the US-Taliban deal
- An honourable exit for India: The terms of the deal, the manner in which it was negotiated as well as the geopolitical context in which it was stitched up indicate that it was more about providing an honourable exit route for the U.S.
- Violence after concluding the deal: Within 24 hours of the much-publicised deal, violence and major disagreements about the deal began erupting in Afghanistan.
- Why there are the prospects of instability in Afghanistan: Given that the Taliban negotiated from a position of strength, the Trump administration from weakness and little political will, and that the Ashraf Ghani administration in Afghanistan was by and large a clueless bystander in all of this, means that the country is perhaps on the verge of yet another long-drawn-out and internecine battle.
The changed Taliban
- Taliban of the 1990s: When the Taliban came to power in the mid-1990s in Kabul, it had few backers in the world.
- Nor was it seen as a useful commodity by the great powers or the states in the region, except for Pakistan, Saudi Arabia, and the United Arab Emirates.
- United pushback from the rest of the world: The international community was almost united in offering a normative pushback against the violent outfit.
- As a result, the Taliban was at best reluctantly tolerated until it messed up towards the end of its regime in Kabul.
- The pressure of Northern Alliance: The Northern Alliance, supported by countries such as Russia and India, kept up its military pressure against the Taliban while it was in power.
- How today’s Taliban is different from the past: The situation today, at least for the moment, is perhaps the exact opposite of what was the case then.
- Lessons learned to deal with the international system: The Taliban today is also more worldly-wise and might have learned, during its exile, to deal with the international system and play the game of balance of power.
- Not necessarily the puppet: More so, it may not necessarily be a puppet of the Pakistani deep state once it returns to power.
International acceptance of the Taliban
- Lending the legitimacy to Taliban: Given the war fatigue and the geopolitical stakes in Afghanistan, most of the key players in the region and otherwise have been in negotiations with the Taliban one way or another, and for one reason or another, lending the terror group certain legitimacy in the process.
- Why countries want good relations with the Taliban: Anyone desirous of a stake in Afghanistan or does not want its domestic turmoil to spill over into their country would want to keep the Taliban in good humour.
- Suitable withdrawal of the US: There is another reason why the Taliban has many suitors — because of the U.S. withdrawal by and large suits everyone, be it China, Pakistan, Iran, or Russia.
- The US bigger challenge: Suddenly, the Taliban appears to have been forgiven for its sordid past and unforgivable sins because for most of these countries, the U.S. is the bigger challenge than the Taliban.
Why India’s strategy is diplomatically flawed?
- Only state at losing end: The only state that seems to be on the losing end, unfortunately, of this unfolding game of chess and patience in Afghanistan is India.
- Why the earlier Taliban was anti-India? The earlier Taliban regime was anti-India, it was also because India had militarily supported the Northern Alliance that kept up the military pressure against the Taliban.
- Today’s Taliban does not share the same animus for India.
- Need for Change in India’s approach: India, could have rejigged its approach to the Taliban this time around. However, it put all its eggs in the Ashraf Ghani basket, even on the eve of the signing of the peace deal in Doha.
- Not a diplomatic strategy by India: India also, for most intents and objectives, adopted a puritanical approach to the Taliban.
- There are 2 reason India is neither reaching out to the Taliban nor exploiting the fissures within it-
- Because it did not want to irk the elected government in Kabul and-
- It adopts a moralistic approach to dealing with extremist groups in general — not a smart diplomatic strategy.
- Self-defeating position: This moralistic attitude, also a diplomatically lazy one, I would say, that be it Pakistan or Afghanistan, India would only talk to the legitimate government in that country, is a self-defeating position.
- The world is not that perfect, nor state all that uniform, created in the shape and image of the Westphalian forefather.
- Smart statecraft, therefore, is dealing with what you have and making the best of it.
What would be the result of India’s strategy?
- Impact on relations with Afghanistan: India’s relations with Afghanistan will take a hit in the immediate aftermath of the deal.
- Limited ability to influence the outcomes: With China, India’s strategic adversary, deeply involved in the geopolitics and geo-economics of the region, including in Afghanistan, India’s traditional ability to influence the region’s political and security outcomes will be severely limited.
- This will be further exacerbated by the withdrawal of the U.S., India’s closest friend, from the region.
- India’s relation with the other players in the region: Other regional actors in Afghanistan are also less friendly towards India than ever before: Iran feels let down by India given how the latter has behaved towards it at the behest of the Americans.
- Relation with Russia: For Russia, India is only one of the many friends in the region — the exclusivity of Russia-India relations is a thing of the past — and Pakistan would consider targeting India a fair game.
- Counter Strategy: Unless New Delhi carefully envisages a counter-strategy, these factors will increasingly push India into a geopolitical tough spot in the region.
- Need to focus on the region: India should worry us that our political class is focused on domestic politics while the region is becoming ever more uncertain and evidently unfavourable to us.
Taliban and Kashmir Angle of the deal
- Negligible physical impact but the possibility of psychological impact: While the direct physical impact of the Taliban’s return to power in Afghanistan on Kashmir will be negligible, this will not be without serious implications for the unfolding situation in Kashmir’s restive regions.
- Psychological impact: The most important impact is going to be psychological.
- Interpretation of the event: Disenchanted Kashmiri youngsters, and there are a lot of them, will interpret the events in Afghanistan as follows: “If the mighty superpower USA could be defeated by the Taliban in Afghanistan with help from the Pakistan army, defeating Indian forces in Kashmir won’t be impossible after all.”
- This enthusiasm is completely misplaced, but that is not the point.
- That the Kashmiri youth might pick up guns drawing inspiration from the situation in Afghanistan is indeed the point.
- Increase in Pakistan’s utility: The U.S.-Taliban deal cannot survive without Pakistan’s assistance towards ensuring its success, and the U.S. and its allies recognise that. Such recognition of Pakistan’s utility provides the country with ability, as and when it wishes to, to up the ante in Kashmir.
- The geopolitical significance of Pok and Aksai Chin claim: India’s official statement which describes Afghanistan as a “contiguous neighbour” — meaning that India considers Pakistan-occupied Kashmir (PoK) a part of its sovereign territory — will make Pakistan and China sit up and take notice.
- Claim making reconciliation more difficult: India also made a similar claim about Aksai Chin in the wake of its August decision on Kashmir. Erstwhile rhetorical claims on PoK and Aksai Chin have suddenly assumed a lot more geopolitical significance today making conciliatory approaches to conflict resolution ever more difficult.
Conclusion
Given that a new Taliban-led dispensation in Afghanistan will be far more accepted by the international community than the last time around also means increased acceptability for such regimes in general, either out of necessity or as a function of geopolitical calculations. That the Taliban mass-murdered its opponents into statehood in the 21st century and that this might provide potential inspiration to other outfits in the region and outside should indeed worry us.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 3- How should India use the windfall from the fall in oil.
Context
Amid the gathering global crisis, its time India minds its own house.
Panic and dislocation in Global markets
- Panic at the level of the 2008 crisis: Global markets haven’t witnessed such panic and dislocation since the global financial crisis of 2008.
- Global equity markets have collapsed, the US’s 10-year bond is at its lowest level ever, and crude prices underwent their largest single-day fall in 30 years.
- Interaction of three global shocks: The market mayhem is the upshot of three global shocks interacting with each other.
What are the three global shocks?
- Negative demand shock due to Coronavirus: A negative demand shock around the world. As the coronavirus proliferates globally, households and businesses are understandably becoming risk-averse, and the consequent “social distancing” is expected to exert significant demand destruction around the world.
- Negative supply shock emanating from China: The widespread industrial closures in China on the back of the COVID-19 outbreak will impact imports and supply chains in other countries, and thereby constitute an adverse supply shock for the rest of the world.
- The magnitude of the shock: The 20-point drop in manufacturing output in the February PMI and the 17 per cent contraction in Chinese exports across January and February, suggests that the shock was large and immediate.
- Supply shock likely to fade: That said, with the virus, gradually being contained in China, this supply shock is likely to fade even as the demand shock in the rest of the world widens and deepens.
- Positive oil supply shock: The failure of oil producers to agree on production cuts has led to a price war with production increases on the anvil.
- Cumulatively, crude pieces are down almost 50 per cent — about $30/barrel — since January.
- A positive supply shock, which even adjusting for the concentrated stress in the oil sector, is growth-additive for the world and particularly for India.
- India specific shock: There is a fourth India-specific force at play. The resolution and reconstruction of YES Bank was inevitable, but, at least temporarily, it is likely to result in a “flight to quality” in India’s financial sector, with resources moving from the financial periphery to the core.
- Banks and NBFC may face difficulty in mobilising resources: To the extent that the periphery — smaller private banks and non-bank financial companies — will find it harder to mobilise resources, financial sector risk aversion could rise again.
Implications for India’s macroeconomic stability
- Significant negative impact due to export: India is a much more open economy than is widely believed with exports constituting almost 20 per cent of GDP. Therefore, the impact of the demand destruction around the world will not be trivial.
- 40 bps decrease in the growth: If global growth is marked down by 100 basis points in 2020, which increasingly appears to be the case, we estimate that this would shave off about 40 bps from India’s growth through the export channel alone.
- The cumulative drag to growth from exports and tourism would be a meaningful 60-70 bps.
- Positive impact due to oil price shock: The near $30/barrel decline since January constitutes a large positive terms of trade shock for India — equivalent to about 1.3 per cent of GDP even accounting for reduced remittances from the Middle East.
- Meaningful mitigant: If oil prices remain at this level for long, it would constitute a meaningful mitigant to India’s macro headwinds, boosting activity, dampening prices, creating fiscal space and reducing external imbalances.
- Offsetting the negative impact of trade and tourism: Every $10 reduction in crude prices, boosts growths by about 20-25 bps.
- Therefore, the $30 decline in crude, if it holds, should boost growth by about 60-70 bps, thereby largely offsetting the negative hit to growth from external trade and tourism.
- Space for monetary easing: Furthermore, crude at $35-40, along with the global demand destruction is expected to generate large disinflationary forces, opening up space for monetary easing.
- CAD would disappear: Finally, India’s current account deficit would virtually disappear, for the first time since 2003-04.
The growth offset conditioned on coronavirus spread
- The assumption in the offset: The above-mentioned growth offset, however, assumes that the coronavirus does not spread within India.
- If India witnessed a rapid domestic proliferation, heightened risk aversion by economic agents could meaningfully hurt domestic demand.
- A thought experiment on the impact on the economy: Discretionary services constitute about 35 per cent of GDP and have been growing at 8 per cent a year.
- If that growth rate were to halve, that alone would deduct 140 bps from growth, and swamp any growth tailwinds from lower oil prices.
- Furthermore, a “sudden stop” of demand to certain sectors may necessitate fiscal/liquidity support to ensure these don’t magnify into more disruptive credit events for the financial sector.
- The best antidote to prolonged growth hit: The best antidote would be to aggressively contain the virus domestically, as authorities appear to be doing.
- The experience from other countries suggests aggressive containment early in the process (isolation, quarantines, contract tracings, cancelled gatherings) reduces the growth rate of the virus from exponential to linear.
- Macroeconomic outlook: The key to India’s macro outlook is whether the crude price decline can sustain and whether India can avoid a sharp domestic proliferation of COVID-19.
Way forward
- Pass the oil windfall to the public: Given current fiscal pressures, it’s tempting to advocate that the public sector appropriate much of the windfall. But with consumption under such pressure, there’s a strong case to pass this on to households.
- A sharp cut in domestic fuel prices will boost household purchasing power and aggregate demand thereby creating contemporaneous counter-cyclical pressures.
- Stick to the asset sale plan: While the turbulence in equity markets could understandably delay the government’s asset sale programme, it should not be allowed to derail it, given the criticality of asset sales to this year’s fiscal math.
- Absorbing all the oil windfall through higher taxes as a substitute for asset sales would be a suboptimal mix.
- Continue with the reforms: The salutary effects of falling crude prices — which would boost India’s macros relative to other emerging markets — should not mask the imperative to continue with reforms, particularly recognising and resolving any further financial sector stress proactively.
Conclusion
Global markets are witnessing their most acute volatility since 2008. All we can do is mind our own house amidst the gathering global storm.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Lt Governor and Governor
Mains level: Administrative differences in governance of UTs
The Madras High Court has held that the role of Puducherry’s Lieutenant Governor and that of an elected government in the UT were intertwined as per law, and therefore they were expected to act in unison and not in division.
What did the court rule?
- The government headed by the CM and the Administrator/Lieutenant Governor of Puducherry shall work in unison and not in division.
- The Madras HC set aside a single bench judgment that had held that the Lieutenant Governor (LG) does not have the right to interfere in the daily affairs of the elected government of Puducherry.
- The HC has held that the Administrator is bound by the aid and advice of the Council of Ministers in matters where the Legislative Assembly is competent to enact laws.
- This power of Assembly is contemplated under Section 44 of the Government of Union Territories Act, 1962.
How is Puducherry different from other UTs?
- UT of Puducherry is headed by the Lieutenant Governor of Puducherry as its nominal head, with a democratically elected CM as real head of the executive.
- Other union territories don’t have an elected government and legislative assembly.
- Puducherry, National Capital Territory of Delhi and Jammu and Kashmir (newly formed UT) are the three territories which have democratically elected governments like Indian states.
- The State legislatures were a creation of the Constitution, whereas the UT legislatures were created under a law such as the Government of UTs Act, 1963.
- The constitutional provisions, the 1963 Act as well as the Rules of Business of the Government of Puducherry lay expect the Lieutenant Governor to act as a bridge between the local government and the Centre.
- The Administrator is expected to play the role of an umpire whenever there was a disagreement between the Lieutenant Governor and the Council of Ministers.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Epidemic Diseases Act, 1897
Mains level: Epedimics and their mitiagtion strategies
Till today, at least 60 COVID-19 cases have been confirmed in India. So it was decided in a Cabinet Secretary meeting that States and UTs should invoke provisions of Section 2 of Epidemic Diseases Act, 1897, so that Health Ministry advisories are enforceable.
History of the 1897 Epidemic Diseases Act
- The Epidemic Diseases Act is routinely enforced across the country for dealing with outbreaks of diseases such as swine flu, dengue, and cholera.
- The colonial government introduced the Act to tackle the epidemic of bubonic plague that had spread in the erstwhile Bombay Presidency in the 1890s.
- Using powers conferred by the Act, colonies authorities would search suspected plague cases in homes and among passengers, with forcible segregations, evacuations, and demolitions of infected places.
- Historians have criticised the Act for its potential for abuse.
- In 1897, the year the law was enforced, Lokmanya Tilak was punished with 18 months’ rigorous imprisonment after his newspapers Kesari and Mahratta admonished imperial authorities for their handling of the plague epidemic.
Provisions of the 1897 Epidemic Diseases Act
- The Act is one of the shortest Acts in India, comprising just four sections. It aims to provide for the better prevention of the spread of Dangerous Epidemic Diseases.
- The then Governor-General of colonial India had conferred special powers upon the local authorities to implement the measures necessary for the control of epidemics.
- Although, the act does define or give a description of a “dangerous epidemic disease”.
Its various sections can be summarized as under:
- The first section describes all the title and extent, the second part explains all the special powers given to the state government and centre to take special measures and regulations to contain the spread of disease.
- The second section has a special subsection 2A empowers the central government to take steps to prevent the spread of an epidemic, especially allowing the government to inspect any ship arriving or leaving any post and the power to detain any person intending to sail or arriving in the country.
- The third section describes the penalties for violating the regulations in accordance with Section 188 of the IPC. Section 3 states, “Six months’ imprisonment or 1,000 rupees fine or both could be charged out to the person who disobeys this Act.”
- The fourth and the last section deals with legal protection to implementing officers acting under the Act.
Examples of implementation
The act has been invoked several times since independence. Few recent incidents include-
- In 2018, the district collector of Gujarat’s Vadodara issued a notification under the Act declaring a town as cholera-affected.
- In 2009, to tackle the swine flu outbreak in Pune, Section 2 powers were used to open screening centres in civic hospitals across the city, and swine flu was declared a notifiable disease.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: COVID 19
Mains level: Global pandemics and their mitiagtion strategies
Scientists across the world are trying to develop a line of treatment and a possible vaccine for COVID-19. However, with the most optimistic timelines we don’t see a line of treatment or vaccine arriving before next year.
Genome sequencing of Coronavirus
- A global effort is on to collect and analyse the genetic composition of the new virus, which would be key to developing a cure and a vaccine.
- Genome sequence is the unique code of genetic material of any organism, and determines the characteristic of any organism.
- Whole genome sequencing is the process of determining the complete DNA sequence of an organism’s genome at a single time.
- The gene composition of novel coronavirus, for instance, is different from that of the influenza virus. Every organism has a unique genome sequence.
- Laboratories in various countries have been isolating and sharing the genome sequences of the virus on an international platform.
Why are so many genome sequences being isolated?
- When viruses multiply, or reproduce, there is a copying mechanism that transfers the gene information to the next generation.
- However, no copying mechanism is perfect. When the virus multiplies, there will be small changes, which are called mutations.
- These mutations accumulate over time, and after prolonged periods, are responsible for evolution into new organisms.
- Within a single reproduction, the changes are extremely minor. More than 95 per cent of the gene structure remains the same.
How it helps scientists?
- However, the small changes that occur are crucial to understanding the nature and behaviour of the organism.
- In this case, for example, the small changes could provide scientists with information about the origin, transmission, and impact of the virus on the patient.
- It could also hold clues to the differing effects the virus could have on patients with different health parameters.
How many genome sequences are required?
- India has far fewer positive cases compared to China, South Korea, Iran, Italy, or even the US.
- Patients who have been infected with the virus in similar conditions are unlikely to show any significant changes in the genome sequences.
- Patients with existing medical conditions could be other candidates from where genome sequences of this virus could be isolated.
- This could help scientists to look for clues to possible impact of virus amidst those existing medical conditions.
Currently, what is the most effective medication?
- As of now, there is none such. Right now, drugs are being repurposed, meaning old drugs for similar diseases are being checked for their efficacy against COVID-19.
- These drugs, if they work, will require clinical trials, and then can be made widely available for people.
- In most cases, symptomatic treatment for fever, body ache, and cough will be sufficient. More severe cases will require oxygen and respiratory support.
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