Note4Students
From UPSC perspective, the following things are important :
Prelims level: PM CARES Fund
Mains level: Disaster management in India
The Supreme Court has endorsed the PM CARES Fund as a “public charitable trust” to which donors contribute voluntarily.
Try this question:
Q. The creation of PM CARES fund is violative of the provision of the Disaster Management Act, 2005. Analyse.
What is the case?
- The petition had argued that the PM-CARES Fund was not subject to CAG audit.
- It was not under “public scrutiny”. Contributions to it were “100% tax-free”.
- It was accused that there was statutory fund already in existence under the Disaster Management Act of 2005 to receive contributions to finance the fight against a calamity.
About PM CARES Fund
- The Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) were created on 28 March 2020 following the COVID-19 pandemic in India.
- The fund will be used for combat, containment and relief efforts against the coronavirus outbreak and similar pandemic like situations in the future.
- The PM is the chairman of the trust. Members will include the defence, home and finance ministers.
- The fund will also enable micro-donations. The minimum donation accepted for the PM CARES Fund is ₹10 (14¢ US).
- The donations will be tax-exempt and fall under corporate social responsibility.
What did the Court rule?
- There is “no occasion” for the Comptroller and Auditor General (CAG) to audit a public charitable trust independent of budgetary support or government money.
- The court said that PM-CARES is “not open” for a PIL petitioner to question the “wisdom” that created the fund in an hour of need.
- The court dismissed the idea that the PM CARES was constituted to “circumvent” the National Disaster Response Fund (NDRF).
- The Bench also refused to direct the transfer of funds from the PM CARES Fund to the NDRF. It said they were two separate entities.
Also read:
PM-CARES Fund
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Atmanirbhar Bharat Abhiyan
Mains level: Economic recovery amid coronavirus pandemic
The COVID-19 pandemic has disrupted the global economy and India is no different. Besides the stimulus package totalling ₹20 lakh crore, a lot more needs to be done, however, to resuscitate the country’s growth engine.
Try this question:
Q.Economic reconstruction needs a multi-pronged strategy apart from economic stimulus. Discuss.
Need for a two-pronged strategy
- At this critical juncture, India needs a two-pronged strategy to successfully navigate the current crisis and recover strongly thereafter.
- First, minimise the damage caused by the COVID and clear a path to recovery and second, rebooting and re-imaging India by promptly exploiting new opportunities unleashed by evolving business scenarios.
Identifying the four major economic drivers:
- Big Business Houses which are a major contributor to GDP and large employment generators
- MSMEs which are the lifeline of the country, generating wealth for the middle class
- Startups which bring innovation and transformation to our country’s economy
- Approaching Indian Diasporas for driving foreign investments
Following suggestions by the author gives a way forward strategy to recover the economy:
-
Tax incentivization
- Big business houses should be supported by the government to reopen their operations by way of tax incentives or ease of procurement of raw materials or other goods and services on credit.
- This will energize consumer demand and boost the functioning of the vendor or ancillary industry in the MSME sector (which has huge potential for job creation).
-
Ensuring seamless credit flows considering NPAs
- The RBI should consider Single One Time Window for restructuring business loans, as required, by all banks.
- There is a high probability that non-performing assets are likely to rise once the prevailing moratorium is lifted by RBI.
- The government and RBI also urgently need to assure banks, that their business decisions will not be questioned, to encourage credit flows.
-
Calibrating Make in India
- The ongoing distrust on Chinese manufacturing amid US-China spat can be very well garnered by India.
- Making India a global trading hub – devise an incentive regime for companies setting up global trading operations from India.
- The govt. should think of establishing self-contained “industrial cities” that earmark space for manufacturing, commercial, educational, residential and social infrastructure.
- The Centre can prepare a five-year plan on getting at least 60 per cent of those companies, desiring to move manufacturing out of China to India.
-
Encouraging sunrise sectors
- It should also encourage sunrise sectors as part of re-imagining Indian economy such as battery manufacturing (storage systems)/ solar panel manufacturing.
- The government can also consider giving impetus to “Deep Tech”-leveraged businesses — blockchain, robotics, AI, machine learning, augmented reality, big data analytics, cybersecurity, etc.
-
Creating an ecosystem to boost startups
- India is amongst the top start-up ecosystems globally. Several of them are in pre-Angel or Angel-Funding stages and are under significant pressure to stay afloat in view of a lack of adequate liquidity.
- Start-ups not only help drive innovation but also create jobs, which will be very important going forward.
- The government needs to provide significant support to the start-up ecosystem.
-
Auto-sector reforms
- The auto industry which contributes significantly to GDP (nearly 9%) deserves special treatment.
- In addition to reducing GST rate, old vehicle scrap policy with tax incentives for creating a demand for new vehicles may be formulated.
- There is a need to recognise the Auto Sales Industry channel partners as MSMEs.
-
Plug-and-Play model for foreign investment
- Maharashtra has created a turnkey ‘plug-and-play’ model for foreign investors.
- Similarly, other States must get their act together, be it on land acquisition, labour laws and providing a social, environment and other infrastructure.
- Land should be made available for projects with all necessary pre-clearances — at Centre’s level (including Environmental), State’s and Municipal dispensations.
-
Labour law reforms
- Reforms in labour laws do not only mean permission to hire and fire.
- Leeway should be given to strictly enforce discipline within the factory premises and demand higher productivity.
- The moves by U.P., M.P. and Gujarat are welcome signals.
- The government should provide health insurance for migrant labourers as experimented by certain States.
-
Encouraging Diaspora
- Investments of NRIs and OCIs in India should be treated on par with those of Resident Indians as regards interest and dividend repatriation and management control of Indian companies.
- It may be mentioned that the Chinese government had called on rich overseas Chinese to invest in China with minimum government control, and massive investments followed.
- This has contributed to China’s prosperity and economic rise.
- A similar investment boom can take place in India through NRIs and OCIs who have the resources and expertise in manufacturing and technology.
-
Creating off-Shore investment centres
- Off-Shore investment centres like Singapore can be opened in Mumbai where Indian domestic laws and taxation will not be applicable.
- MNCs may route their investments into India through the Off-Shore Centre in Mumbai.
- Foreign legal firms and banks along with domestic institutions can be invited to have a presence in the Off-Shore Centre.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bio-ethanol
Mains level: Ethanol blended petrol programme
The government has set targets of 10 per cent bioethanol blending of petrol by 2022 and to raise it to 20 per cent by 2030 to curb carbon emissions and reduce India’s dependence on imported crude oil.
Try this PYQ:
Q.Given below are the names of four energy crops. Which one of them can be cultivated for ethanol?(CSP 2010)
(a) Jatropha
(b) Maize
(c) Pongamia
(d) Sunflower
What is Ethanol Blended Petrol (EBP) Program?
- Ethanol Blended Petrol (EBP) programme was launched in January 2003 for the supply of 5% ethanol blended petrol.
- The programme sought to promote the use of alternative and environment-friendly fuels and to reduce import dependency for energy requirements.
- OMCs are advised to continue according to the priority of ethanol from 1) sugarcane juice/sugar/sugar syrup, 2) B-heavy molasses 3) C-heavy molasses and 4) damaged food grains/other sources.
Bio-ethanol blend in India
- 1G and 2G bioethanol plants are set to play a key role in making bio-ethanol available for blending but face challenges in attracting investments from the private sector.
- 1G bioethanol plants utilise sugarcane juice and molasses, byproducts in the production of sugar, as raw material, while 2G plants utilise surplus biomass and agricultural waste to produce bioethanol.
- Currently, domestic production of bioethanol is not sufficient to meet the demand for bio-ethanol for blending with petrol at Indian Oil Marketing Companies (OMCs).
- Sugar mills, which are the key domestic suppliers of bio-ethanol to OMCs, were only able to supply 1.9 billion litres of bio-ethanol to OMCs equating to 57.6 per cent of the total demand of 3.3 billion litres.
Hurdles in meeting the demand
- Lack of infrastructure: Many sugar mills are best placed to produce bioethanol do not have the financial stability to invest in biofuel plants. There are also concerns among investors on the uncertainty over the price of bio-ethanol in the future.
- Lack of raw materials: Presently there is no mechanism for depots where farmers could drop their agricultural waste. The central government should fix a price for agricultural waste to make investments in 2G bioethanol production an attractive proposition.
- Rigid pricing mechanism: Sugars mills have to pay high prices for sugarcane set by the government even when there have been supplying gluts. The prices of both sugarcane and bio-ethanol are set by the central government.
Way ahead
- The government should provide greater visibility on the price of bioethanol that sugar mills can expect by announcing a mechanism by which the price of bio-ethanol would be decided.
- 2G bioethanol not only provided a clean source of energy but also help provide greater income to farmers and prevent them from having to burn agricultural waste which can be a major source of air pollution.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Tornado, Cyclones difference
Mains level: Rising events of Tropical Cyclone in India
Babu ChunderSikur Chatterjee’s paper was the earliest record of a tornado’s dynamics in the history of meteorology, according to a study.
Try this PYQ:
Q. In the South Atlantic and South-Eastern Pacific regions in tropical latitudes, cyclone does not originate. What is the reason? (CSP 2015)
(a) Sea surface temperatures are low
(b) Inter-Tropical Convergence Zone seldom occurs
(c) Coriolis force is too weak
(d) Absence of land in those regions
What is a Tornado?
- A tornado is a rapidly rotating column of air that is in contact with both the surface of the Earth and a cumulonimbus cloud or, in rare cases, the base of a cumulus cloud.
- The windstorm is often referred to as a twister, whirlwind or cyclone winds blow counterclockwise in the Northern Hemisphere and clockwise in the Southern.
- Tornadoes come in many shapes and sizes, and they are often visible in the form of a condensation funnel originating from the base of a cumulonimbus cloud, with a cloud of rotating debris and dust beneath it.
- It is generally accompanied by extreme weather such as heavy downpours, hail storms, and lightning.
Who was Babu ChunderSikur Chatterjee?
- Chatterjee was an Indian scientist employed with the Surveyor General of India during the British colonial era.
- He was likely the first person to scientifically document a tornado’s path in 1865, a study from the Indian Institute of Tropical Meteorology (IITM), Pune, has claimed.
- Chatterjee had published his findings in a journal named Proceedings of the Asiatic Society of Bengal, in a paper titled ‘Note on a whirlwind at Pundooah’, near Hooghly.
- The paper described a tornado’s dynamics in meticulous detail and was accompanied by a sketch that mathematically depicted its scale, track and rotation.
His work
- Chatterjee quantitatively mapped the entire trail of á tornado’s destruction.
- He benefited from the rare opportunity to observe a tornado passing through a railway track where there were conveniently placed markers at predefined locations.
- This enabled him to observe and make clear measurements of the tornado’s direction, dynamics and path.
Back2Basics
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Temple architecture in news
Mains level: Temple Architecture of India
The Odisha government has announced to give a facelift to the 11th century Lingaraj Temple, akin to its pre-350-year structural status.
Try this PYQ:
Q. Building ‘Kalyaana Mandapas’ was a notable feature in the temple construction in the kingdom of- (CSP 2019)
(a) Chalukya
(b) Chandela
(c) Rashtrakuta
(d) Vijayanagara
About Lingaraj Temple
- Lingaraja Temple is a temple dedicated to Shiva and is one of the oldest temples in Bhubaneswar, Odisha.
- It represents the quintessence of the Kalinga Architecture and culminating the medieval stages of the architectural tradition at Bhubaneswar.
- The temple is believed to be built by the kings from the Somavamsi dynasty, with later additions from the Ganga rulers.
- It is built in the Deula style that has four components namely, vimana (structure containing the sanctum), jagamohana (assembly hall), natamandira (festival hall) and bhoga-mandapa (hall of offerings), each increasing in the height to its predecessor.
- Bhubaneswar is called the Ekamra Kshetra as the deity of Lingaraja was originally under a mango tree (Ekamra) as noted in Ekamra Purana, a 13th-century Sanskrit treatise.
- The temple has images of Vishnu, possibly because of the rising prominence of Jagannath sect emanating from the Ganga rulers who built the Jagannath Temple in Puri in the 12th century.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Affordability of electricity
This article analyses the issue of affordability of electricity in the country and the factors making it expensive.
How recent changes increased subsidy burden
- Recent policy measures like the the “Saubhagya” scheme have remarkably improved the first 3 ‘A’s, i.e., awareness, accessibility and availability.
- It has also increased the cost of supply due to an increase in LT distribution network length necessitating more conductors, meters, transformers, etc.
- Most of the newly-added consumers are from rural areas of low-income states like UP and Bihar.
- They belong to subsidised consumer categories, viz. agriculture, rural-domestic, etc.
- Thus, the subsidy burden of respective state governments has increased.
Affordability of subsidy by States
- The state’s capacity to service power subsidy of its BPL consumers is dependent on its per capita income which varies from state to state.
- The central government provides no subsidy for this purpose.
- Therefore, making electricity affordable for consumers becomes a priority for the power sector.
- Limiting focus only to reduction of the cross-subsidy burden of industries may not be fruitful.
Policy steps to make electricity affordable
1) Expedite overdue distribution reforms
- While generation and transmission sectors have been unbundled, unbundling (segregation of carrier and content business) of distribution has been started yet.
- Privatisation of, and governance reforms in, state-owned distribution companies are likely to unlock huge value and provide efficiency gains through loss reduction for making power affordable.
2) Capping of stranded capacity charges
- As of now, we have surplus installed capacity of around 370 GW against a peak demand of 183 GW.
- So, any fresh capacity addition should be limited to projected load demand growth and replacement of retiring power plants.
- This will reduce the stranded capacity charges the discoms are currently paying to gencos under their long-term power purchase agreements without taking any power from them under availability-based tariff regime.
3) Scrap cost-plus regime
- Now, when the country has sufficient installed capacity, it makes no sense to provide a risk-free 15.5% tax-free (or 22% after-tax) return on equity to the power companies.
- No new project (except hydro and nuclear) should be allowed on cost-plus route or MoU route under section 62 of the Electricity Act.
4) Restructure normative debt-equity financing to 80:20
- At present, the regulatory norm used for tariff computation of projects is 70:30 debt: equity.
- Debt servicing is limited only to the term of the loan, i.e., up to 12 years, but Return of Equity is allowed in perpetuity even after the plant has fully depreciated.
- This needs to be limited to the useful life of the unit.
5) No double-whammy for consumers:
- National Clean Energy Fund was created as a non-lapsable fund in 2010 for promoting clean technology, and since then around Rs 1 lakh crore has been collected from coal cess.
- However, most of it has been diverted and used for other purposes like funding to states for their GST losses, etc.
- Asking gencos to install Fuel Gas Desulfurization and pass on the cost to the consumer amounts to a double whammy for the consumers who first paid the coal-cess and now will have to bear the FGD cost also.
- We should stop using cess as a tax and NCEF should be used to fund the clean energy initiative and FGD installation etc.
Consider the question “What are the factors responsible for making the electricity costly in India. Suggest the pathways to make it affordable to all.”
Conclusion
Making electricity affordable following these steps would be instrumental in the progress of the nation.
Source: https://www.financialexpress.com/opinion/powering-reforms-bringing-power-psus-under-competitive-bidding-will-help-in-tariff-reduction/2057940/
B2BASICS
Electricty generation,transmission and Distribution
Saubhagya scheme
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Threat to sovereignty of the Arab countries and India's role
The article analyses the threat the Arab countries faces from the new geopolitical realignment and India’s role in it.
Geopolitical realignment in the middle east
- Agreement on the normalisation of relations between the United Arab Emirates and Israel was signed recently.
- At the same time, there is an equally significant reorientation of the Subcontinent’s relationship with the region.
- This is marked by Pakistan’s alignment with non-Arab powers.
Deteriorating relation of Pakistan with Arab world
- Pakistan has been angry with UAE’s invitation to India to address the Organisation of Islamic Cooperation in early 2019.
- Saudi Arabia’s reluctance to convene a meeting to condemn Indian actions in Kashmir last August has angered Pakistan.
- While Pakistan appears to be dreaming of a new regional alliance with Turkey and Iran.
- Pakistan is also betting that a rising China and an assertive Russia will both support this new geopolitical formation as part of their own efforts to oust America from the Middle East.
Threat to the Arab world
- Saudis and Emiratis see sharpening existential threats to their kingdoms from both Turkey and Iran.
- Both Turkey and Iran now intervene with impunity in the internal affairs of the Arab world.
- Two other states have joined this Great Game.
- Malaysia’s Mahathir fancied himself as a leader of the Islamic world.
- Arab Qatar, which is locked in a fraternal fight with the Saudis and the Emiratis, wants to carve out an outsized role for itself in the Middle East.
India’s should follow five principles for Arab Sovereignty
- 1) India must resist the temptation of telling the Arabs what is good for them.
- India should support their efforts to reconcile with non-Arab neighbours, including Israel, Turkey and Iran.
- 2) Oppose foreign interventions in the Arab world. In the past, those came from the West and Israel.
- Today, most Arabs see the greatest threat to their security from Turkish and Iranian interventions.
- 3) Extend support to Arab economic integration, intra-Arab political reconciliation and the strengthening of regional institutions.
- 4) Recognise that India’s geopolitical interests are in close alignment with those in the moderate Arab Centre — including Egypt, Jordan, Saudi Arabia, the UAE and Oman.
- 5) India can’t be passive amidst the unfolding geopolitical realignment in West Asia.
- Some members of the incipient alliance — Turkey, Malaysia and China — have been the most vocal in challenging India’s territorial sovereignty in Kashmir.
Consider the question “Examine the importance of India’s relations with Arab countries. What are the threats the region faces to their sovereignty and how India can play an important role to ensure their sovereignty.”
Conclusion
Standing up for Arab sovereignty and opposing the forces of regional destabilisation must be at the very heart of India’s new engagement with the Middle East.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Article 239AA and Article 239AB
Mains level: Paper 2- Conflict between Lt. Governor and the Delhi Government
The article analyses the tussle between the Delhi Government and the Lt. Governor.
What the 2018 SC judgement was about
- The Supreme Court in Government of NCT of Delhi vs. Union of India (2018) decided on the conflicts between the government of NCT and the Union Government and its representative, the Lieutenant Governor.
- It reminds the Lt. Governor what his real functions are.
- It tells the State government that it should remember that Delhi is a special category Union Territory.
- It lays down the parameters to enabling the harmonious functioning of the government and the Lt. Governor.
- It did not very clearly delineate the issues in respect of which the Lt. Governor can refer a decision taken by the Council of Ministers to the President in the event of a difference of opinion between the Lt. Governor and the State government.
Settled issues and clarifications
- The Supreme Court affirming that the Lt. Governor is bound to act on the aid and advice of council of ministers except in respect of ‘Land’, ‘Public Order’ and the ‘Police’.
- The Court has also made it clear that there is no requirement of the concurrence of the Lt. Governor and that he has no power to overrule the decisions of the State government.
- However, Article 239AA (4) (proviso) which says that in the case of a difference of opinion between the Lt. Governor and his Ministers on any matter, the Lt. Governor shall refer it to the President for decision and act according to that decision.
- If the Lt. Governor thinks that the matter is urgent he can take immediate action on his own.
How Article 239 AA(4) matters
- Lt. Governor can frustrate the efforts of the government, by declaring that there is a difference of opinion on any issue and refer it to the President.
- Refering matter to the President in reality means the Union Home Ministry.
- The Lt. Governor being its representative, it is easier for him to secure a decision in his favour.
- The State government will be totally helpless in such a situation.
- The recent appointment of prosecutors for conducting the Delhi riot cases in the High Court is a case in point.
- When the government decided to appoint them, the Lt. Governor referred it under proviso to Article 239AA (4) to the President stating that there is a difference of opinion.
- This episode clearly points to the fault lines which still exist in the power equations in the capital’s administrative structure.
But, can Lt. Governor refer routine administrative matter to the President?
- A close reading of the Supreme Court judgment in the NCT Delhi case (supra) would reveal that he cannot.
- The Supreme Court says “The words ‘any matter’ employed in the proviso to Article 239AA (4) cannot be inferred to mean ‘every matter’.
- Court also says that “The power of the Lieutenant Governor under the said proviso represents the exception and not the general rule”.
- The President is the highest Constitutional authority and his decision should be sought only on constitutionally important issues.
Executive powers and legislative powers
- Parliament can legislate for Delhi on any matter in the State List and the Concurrent List.
- But the executive power in relation to Delhi except the ‘Police’, ‘Land’ and ‘Public Orders’ vests only in the State government headed by the Chief Minister.
- The executive power of the Union does not extend to any of the matters which come within the jurisdiction of the Delhi Assembly.
- The only occasion when the Union Government can overrule the decision of the State government is when the Lt. Governor refers a matter to the President under the proviso to clause (4).
Consider the question “What are the parameters laid down by the Supreme Court in the Government of NCT of Delhi vs. Union of India (2018) to avoid the conflict between Lt. Governor and the Delhi Government? Also examine the scope of referring any matter to the consideration of the President by the Lt. Governor.”
Conclusion
In the Constitutional scheme adopted for the NCT of Delhi Lt. Governor should not emerge as an adversary having a hostile attitude towards the Council of Ministers of Delhi; rather, he should act as a facilitator.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ceres and other dwarf planets
Mains level: Not Much
The dwarf planet Ceres, which lies in the asteroid belt between Mars and Jupiter now, has the status of an “ocean world”.
Note various dwarf planets and the criteria making a planet dwarf, as mentioned in the B2b section.
Ceres exploration
- The dwarf planet was first spotted by Giuseppe Piazzi in 1801, who assumed that Ceres was the missing planet between Mars and Jupiter.
- It was classified as a dwarf planet in 2006 and is the first dwarf planet to be orbited by a spacecraft.
- In 2015, NASA’s Dawn reached it to study its surface, composition and history.
What does it mean to be an “ocean world”?
- With a crust that mixes ice, salts, rock-forming minerals and other materials, Ceres looks to be a remnant “ocean world,” wearing the chemistry of its Old Ocean and records of the interaction on its surface.
- The observations from Dawn suggest the presence of briny liquid (saltwater) water under Ceres’s surface.
- Scientists have determined that Ceres has a brine reservoir located about 40 km deep and which is hundreds of miles wide, making the dwarf planet, “water-rich”.
Why do researchers study Ceres?
- Scientists are interested in this dwarf planet because it hosts the possibility of having water, something that many other planets do not have.
- Therefore, scientists look for signs of life on Ceres, a possibility that has also maintained scientists’ interest in the planet Mars, whose atmosphere was once warm enough to allow water to flow through it.
- Another reason why scientists are interested in that studying it can give insights about the formation of the Solar System since it is considered to be a fossil from that time.
Back2Basics: Dwarf Planets
- As of today, there are officially five dwarf planets in our Solar System.
- The most famous is Pluto, downgraded from the status of a planet in 2006.
- The other four, in order of size, are Eris, Makemake, Haumea and Ceres. The sixth claimant for a dwarf planet is Hygiea, which so far has been taken to be an asteroid.
- These four criteria are – that the body orbits around the Sun, it is not a moon, has not cleared the neighbourhood around its orbit and has enough mass for its gravity to pull it into a roughly spherical shape.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bhadbhut Project, Hilsa Fish
Mains level: Not Much
The Gujarat government recently awarded the contract for a the Bhadbhut project in Bharuch, Gujarat. It has faced protests from local fishermen for its likely impact on fishing patterns, notably those of hilsa.
Make a note of major dams in India along with the rivers, terrain, major wildlife sanctuaries and national parks incident to these rivers.
What is the Bhadbhut Project?
- It is planned to be a 1.7-km causeway-cum-weir barrage with 90 gates, across the river Narmada, 5 km from Bhadbhut village, and 25 km from the mouth of the river, where it flows into the Gulf of Khambhat.
- The barrage will stop most of the excess water flowing out of the Sardar Sarovar Dam from reaching the sea and thus create a “sweet water lake” of 600 mcm (million cubic metres) on the river.
- The barrage will also have a six-lane road that will connect the left and right banks of the river and provide shorten the land distance between two large industrial estates in Surat and Bharuch.
- The project also aims to prevent flooding in years when rainfall is higher than normal.
- Embankments 22 km long will be made and will extend upstream towards Bharuch, from either side of the river.
- The project is part of the larger Kalpasar Project, which entails the construction of a 30-km dam across the Gulf of Khambhat between Bharuch and Bhavnagar districts.
- The reservoir is meant to tap the waters of the Narmada, Mahisagar and Sabarmati.
Why are fishermen upset?
- The barrage is expected to interfere with the migration and breeding cycle of hilsa.
- A marine fish, hilsa migrate upstream and arrives in the brackish water of the Narmada estuary near Bharuch for spawning usually during the monsoon months of July and August, and continue doing so till November.
- Once the barrage is built, it is expected to block its natural entry.
About Hilsa Fish
IUCN status: Least Concerned
- The Hilsa is a species of fish related to the herring, in the family Clupeidae.
- It is a very popular and sought-after food fish in the Indian Subcontinent.
- Though it’s a saltwater fish, it migrates to sweet waters.
- It is the national fish of Bangladesh and state symbol in the Indian states of West Bengal and Tripura.
- The fish contributes about 12% of the total fish production and about 1.15% of GDP in Bangladesh.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Death Valley, Mojave Desert
Mains level: Not Much
California’s Death Valley registered a temperature of 54.4 degrees Celsius or 129.9 degrees Fahrenheit on August 16, 2020, which, once verified, could be the hottest temperature ever recorded on Earth.
Some years back, there was a question in the mains:
Major hot deserts in the northern hemisphere are located between 20-30 degree north and on the western side of the continents. Why?
Death Valley and its location
- Death Valley is a desert valley in Eastern California, in the northern Mojave Desert, bordering the Great Basin Desert.
- It is one of the hottest places on Earth, along with deserts in the Middle East and the Sahara.
- The valley is extremely dry because it lies in the rain shadow of four major mountain ranges (including the Sierra Nevada and the Panamint Range).
- Moisture moving inland from the Pacific Ocean must pass eastward over the mountains to reach Death Valley; as air masses are forced upward by each range, they cool and moisture condenses, to fall as rain or snow on the western slopes.
- When the air masses reach Death Valley, most of the moisture has already been lost and there is little left to fall as precipitation.
Key factors leading to its high temperature
- Solar heating: The valley’s surface (consisting of soil, rocks, sand, etc.) undergoes intense solar heating because the air is clear and dry, and the land is dark and sparsely vegetated. This is especially noticeable in summer when the sun is nearly directly overhead.
- Trapping of warm air: Warm air naturally rises and cools; in Death Valley, this air is subject to continual reheating as it is trapped by high, steep valley walls and recycled back to the valley floor.
- Migration of warm air from other areas (advection): Warm desert regions adjacent to Death Valley, especially to the south and east, often heat air before it arrives in Death Valley.
- Warm mountain winds: As winds are forced up and over mountains (e.g., the numerous ranges west of Death Valley), the winds can be warmed in several ways. The resulting dry, warm winds are known as foehn winds.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CRAR, PCGS
Mains level: Asset reconstructions post NPA buzz
As part of Aatmanirbhar Bharat Abhiyan, announced by the Government, the Partial Credit Guarantee Scheme (PCGS) 2.0 was launched to provide Portfolio Guarantee for purchase of Bonds or Commercial Papers (CPs) with a rating of AA and below issued by NBFCs/HFCs/ MFIs by Public Sector Banks (PSBs).
Try this PYQ:
When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen? (CSP 2015)
(a) India’s GDP growth rate increases drastically
(b) Foreign Institutional Investors may bring more capital into our country
(c) Scheduled Commercial Banks may cut their lending rates
(d) It may drastically reduce the liquidity to the banking system
About Partial Credit Guarantee Scheme (PCGS)
- Under the scheme, any PSB can purchase securities (minimum rating of ‘AA’) of financially-sound non-banking finance companies.
- The objective is to address temporary asset-liability mismatches of otherwise solvent NBFCs/Housing finance companies (HFCs) without having to resort to distress sale of their assets to meet their commitments.
- The government will provide a one-time, six months’ partial credit guarantee to public sector banks for first loss of up to 10%.
- Also, these NBFCs/HFCs are mandated that the CRAR (capital to risk-weighted assets ratio) shall not go below the regulatory minimum while exercising of the option to buy back the assets.
What is CRAR?
- CRAR also known as Capital Adequacy Ratio (CAR) is the ratio of a bank’s capital to its risk.
- CRAR is decided by central banks and bank regulators to prevent commercial banks from taking excess leverage and becoming insolvent in the process.
- The Basel III norms stipulated a capital to risk-weighted assets of 8%.
- In India, scheduled commercial banks are required to maintain a CAR of 9% while Indian public sector banks are emphasized to maintain a CAR of 12% as per RBI norms.
- It is arrived at by dividing the capital of the bank with aggregated risk-weighted assets for credit risk, market risk, and operational risk.
- RBI tracks CRAR of a bank to ensure that the bank can absorb a reasonable amount of loss and complies with statutory Capital requirements.
- The higher the CRAR of a bank the better capitalized it is.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Nominal GDP
Mains level: Paper 3- Economic slowdown caused by pandemic
Contradictions in the present crisis
- India registered negative economic growth in 1972-73, 1965-66 and 1957-58.
- All these were drought years.
- 1957-58 also registered a significant balance of payments (BOP) deterioration and 1979-80 witnessing the second global oil shock following the Iranian Revolution.
- Farmers harvested a bumper rabi crop last year and public cereal stocks at 94.42 million tonnes as on July 1 were also 2.3 times the required level.
- There’s no shortage today of food, forex or even savings.
- Foreign exchange reserves were at an all-time high of $538.19 billion.
- So, the real GDP decline of 5-10 per cent for 2020-21 would be the country’s first-ever not triggered by an agricultural or a BOP crisis.
“Western style” demand slowdown in India
- What India has been going through is a full-fledged recession bereft of consumption and investment demand.
- Households have cut spending.
- The same goes with businesses. Many have shut or are operating at a fraction of their capacity and pre-lockdown staff strength.
- This demand-side uncertainty and the resulting economic contraction is something new to India.
- Banks are also facing a problem of plenty.
- While their deposits are up 11.1 per cent, the corresponding credit growth has been just 5.5 per cent.
- At some point when all this reduced spending and investments leads to a further contraction of incomes, it is bound to reduce savings as well.
Why the government is not spending?
- Solution in such a situation is the spending by the government.
- There are three probable reasons why government isn’t doing that.
1.Optimism
- Hope that once the worst of the pandemic is behind us, people will start spending and businesses, too, will spring back to life.
- However, this assumes the economy wasn’t doing all that badly previously and that the lockdown hasn’t caused too much of permanent damage.
- The truth is that growth had already slid to 3.9 per cent in 2019-20.
2.State of Government finances
- In 2007-08 global financial crisis, the Centre’s fiscal deficit was only 2.5 per cent of GDP, whereas it stood at 4.6 per cent in 2019-20.
- The space for a fiscal stimulus, in other words, is very limited compared to that time.
3.Sustainability of debt
- Between 2007-08 and 2019-20, the Centre’s outstanding debt-GDP ratio has come down from 56.9 to 49.25 per cent.
- So has general government debt, which includes the liabilities of states, from 74.6 to 69.8 per cent.
- Economists such as Olivier Blanchard have shown that public debts are sustainable provided governments can borrow at rates below nominal GDP growth (i.e. GDP unadjusted for inflation).
- The nominal GDP averaged 11.1 per cent during 2014-15 to 2018-19.
- As against this, the weighted average interest rate on Central government securities ruled between 6.97 per cent in 2016-17 and 8.51 per cent in 2014-15.
- Only with nominal GDP growth falling to 7.2 per cent in 2019-20, and most likely zero this fiscal, has the Blanchard debt sustainability formula come under threat.
Way forward
- Government can take lessons from the Vajpayee period when the weighted average cost of Central borrowings more than halved from 12.01 per cent in 1997-98 to 5.71 per cent in 2003-04.
- In the last four months, yields on 10-year Indian government bonds have softened from 6.5 to 5.9 per cent and even more for states — from 7.9 to 6.4 per cent.
- Interest rates will fall further as banks have nobody to lend to.
Consider the question “Examine how covid induced economic recession is different from the past recessions? What are the options with the government to deal with the situation?”
Conclusion
Governments should borrow and spend. They need worry only about GDP growth, real and nominal.
Sources: https://indianexpress.com/article/opinion/columns/a-crisis-without-villains-6557602/
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Agriculture Infrastructure Fund
Mains level: Paper 3- Measures to achieve better price realisation for agri commodities.
The article analyses the highlights the importance of post harvest infrastructure for the better price realisation of agri-commodities. It also suggests the two areal which could help the farmers in this regard.
Purpose of Agriculture Infrastructure Fund
- Creating post-harvest physical infrastructure is as important as the changes in the legal framework (like the recent ordinances).
- The recently announced Rs 1 lakh crore Agriculture Infrastructure Fund (AIF) will be used over the next four years.
- This fund will be used to build post-harvest storage and processing facilities.
- NABARD will steer this initiative in association with the Ministry of Agriculture and Farmers Welfare, largely anchored at FPOs.
- The creation of the AIF presumes that there is already large demand for storage facilities and other post harvest infrastructure.
Reforms in 2 areas which could help farmers get better price realisation
1) Negotiable warehouse receipt
- More and better storage facilities can help farmers avoid distress sellingimmediately after the harvest.
- But small farmers cannot hold stocks for long as they have urgent cash needs to meet family expenditures.
- Therefore, the value of the storage facilities at the FPO level could be enhanced by a negotiable warehouse receipt system.
- FPOs can give an advance to farmers, say 75-80 per cent of the value of their produce at the current market price.
How NABARD can play an important role
- Since NABARD is also responsible for the creation of 10,000 more FPOs, it can create a package that will help these outfits realise better prices
- FPOs will need large working capital to give advances to farmers against their produce as collateral.
- NABARD can ensure that FPOs get their working capital at interest rates of 4 to 7 per cent.
- Currently, most FPOs get capital from microfinance institutions at rates ranging from 18-22 per cent per annum which is not economically viable unless the off-season prices are substantially higher than the prices at harvest time.
2)Improving Agri-futures markets
- A vibrant futures market is a standard way of reducing risks in a market economy.
- Several countries — be it China or the US — have agri-futures markets that are multiple times the size of those in India.
Way forward
- 1) NABARD should devise a compulsory module that trains FPOs to use the negotiable warehouse receipt system and navigate the realm of agri-futures to hedge their market risks.
- 2) Government agencies dealing in commodity markets — the FCI, NAFED, State Trading Corporation (STC) — should increase their participation in agri-futures.
- That is how China deepened its agri-futures markets.
- 3) The banks that give loans to FPOs and traders should also participate in commodity futures as “re-insurers” for the healthy growth of agri-markets.
- 4) Government policy has to be more stable and market friendly.
- In the past, it has been too restrictive and unpredictable.
Consider the question “Creating post-harvest physical infrastructure is as important as the changes in the legal framework. In light of this, highlight the importance of recently announced Agriculture Infrastructure Fund and suggest the measures to increase the price realisation of agri-products by farmers.”
Conclusion
India needs to not only spatially integrate its agri-markets (one nation, one market) but also integrate them temporally — spot and futures markets have to converge. Only then will Indian farmers realise the best price for their produce and hedge market risks.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Marriage age issues and its discrimination nature
PM in his I-Day speech has announced that the central government has set up a committee to reconsider the minimum age of marriage for women during his address to the nation on the 74th Independence Day.
Try this question for mains:
Q.The different minimum age of marriage for women and men is a discriminatory provision. Analyse.
Back in debate
- The minimum age of marriage, especially for women, has been a contentious issue.
- The law evolved in the face of much resistance from religious and social conservatives.
- Currently, the law prescribes that the minimum age of marriage is 21 years and 18 years for men and women respectively.
Issue over majority
- The minimum age of marriage is distinct from the age of majority which is gender-neutral.
- An individual attains the age of majority at 18 as per the Indian Majority Act, 1875.
- The law prescribes a minimum age of marriage to essentially outlaw child marriages and prevents the abuse of minors.
What is the committee that the PM mentioned?
- The Union Ministry for WCD had set up a task force to examine matters pertaining to the age of motherhood, imperatives of lowering Maternal Mortality Ratio and the improvement of nutritional levels among women.
- The task force would examine the correlation of age of marriage and motherhood with health, medical well-being, and nutritional status of the mother and neonate, infant or child, during pregnancy, birth and thereafter.
- It will also examine the possibility of increasing the age of marriage for women from the present 18 years to 21 years.
How common are child marriages in India?
- UNICEF estimates suggest that each year, at least 1.5 million girls under the age of 18 are married in India.
- It makes our country home to the largest number of child brides in the world — accounting for a third of the global total.
- Nearly 16 per cent adolescent girls aged 15-19 are currently married.
Provisions for the minimum age for marriage
- Personal laws of various religions that deal with marriage have their own standards, often reflecting custom.
- For Hindus, Section 5(iii) of The Hindu Marriage Act, 1955, sets 18 years as the minimum age for the bride and 21 years as the minimum age for the groom.
- However, child marriages are not illegal — even though they can be declared void at the request of the minor in the marriage.
- In Islam, the marriage of a minor who has attained puberty is considered valid.
- The Special Marriage Act, 1954 and the Prohibition of Child Marriage Act, 2006 also prescribe 18 and 21 years as the minimum age of consent for marriage for women and men respectively.
- Additionally, sexual intercourse with a minor is rape, and the ‘consent’ of a minor is regarded as invalid since she is deemed incapable of giving consent at that age.
Evolution of the law
- The IPC enacted in 1860 criminalised sexual intercourse with a girl below the age of 10.
- The provision of rape was amended in 1927 through The Age of Consent Bill, 1927, which declared that marriage with a girl under 12 would be invalid.
- The law faced opposition from conservative leaders of the Indian National Movement, who saw the British intervention as an attack on Hindu customs.
- A legal framework for the age of consent for marriage in India only began in the 1880s.
Comes in: The Sarda Act
- In 1929, The Child Marriage Restraint Act set 16 and 18 years as the minimum age of marriage for girls and boys respectively.
- The law, popularly known as the Sarda Act after its sponsor Harbilas Sarda, a judge and a member of Arya Samaj, was eventually amended in 1978 to prescribe 18 and 21 years as the age of marriage for a woman and a man respectively.
Contention over different legal standards
- There is no reasoning in the law for having different legal standards of age for men and women to marry. The laws are a codification of custom and religious practices.
- The Law Commission consultation paper has argued that having different legal standards “contributes to the stereotype that wives must be younger than their husbands”.
- Women’s rights activists have argued that the law also perpetuates the stereotype that women are more mature than men of the same age and, therefore, can be allowed to marry sooner.
- The international treaty Committee on the Elimination of Discrimination against Women (CEDAW), also calls for the abolition of laws that assume women have a different physical or intellectual rate of growth than men.
Why is the law being relooked at?
- Despite laws mandating minimum age and criminalizing sexual intercourse with a minor, child marriages are very prevalent in the country.
- From bringing in gender-neutrality to reduce the risks of early pregnancy among women, there are many arguments in favour of increasing the minimum age of marriage of women.
- Early pregnancy is associated with increased child mortality rates and affects the health of the mother.
Upholding the Constitution
- Petitioners, in this case, had challenged the law on the grounds of discrimination.
- It is argued that Articles 14 and 21 of the Constitution, which guarantee the right to equality and the right to live with dignity, were violated by having different legal ages for men and women to marry.
- Two significant Supreme Court rulings can act as precedents to support the petitioner’s claim.
- In 2014, in the ‘NALSA v Union of India’ case, the Supreme Court, while recognising transgenders as the third gender, said that justice is delivered with the “assumption that humans have equal value and should, therefore, be treated as equal, as well as by equal laws”.
- In 2019, in ‘Joseph Shine v Union of India’, the Supreme Court decriminalized adultery, and said that “a law that treats women differently based on gender stereotypes is an affront to women’s dignity”.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: West Bank and its location
Mains level: Israeli claims over West Bank and Gaza
Last week Mr Trump has announced that Israel and the United Arab Emirates (UAE) had reached a peace agreement. Many countries, including the European powers and India, have welcomed it, while the Palestinian leadership, as well as Turkey and Iran, have lashed out at the UAE.
The strategic location of Gaza strip, West Bank, Dead Sea etc. creates a hotspot for a possible map based prelims question.
Consider this PYQ:
Q. The area is known as ‘Golan Heights’ sometimes appears in the news in the context of the events related to: (CSP 2015)
a) Central Asia
b) Middle East
c) South-East Asia
d) Central Africa
The Israel-UAE Pact
- The UAE and Israel would establish formal diplomatic relations and in exchange, Israel would suspend its plans to annex parts of the occupied West Bank.
- Israeli PM Netanyahu had earlier vowed to annex the Jewish settlements in the West Bank.
- But now, as part of the agreement, Israel “will suspend declaring sovereignty over areas” of the West Bank and “focus its efforts on expanding ties with other countries in the Arab and Muslim world”.
A timeline of Israel-Arab Conflict
Arab-Israeli ties have historically been conflict-ridden.
- Arab countries, including Egypt, Transjordan, Syria and Iraq, fought their first war with Israel in 1948 after the formation of the state of Israel was announced.
- The war ended with Israel capturing more territories, including West Jerusalem than what the UN Partition Plan originally proposed for a Jewish state.
- After that, Israel and Arab states fought three more major wars — the 1956 Suez conflict, the 1967 Six-Day War and the 1973 Yom Kippur War.
- After the 1967 war in which Israel captured the Sinai Peninsula and Gaza Strip from Egypt, East Jerusalem and the West Bank from Jordan and the Golan Heights from Syria.
- Arab countries convened in Khartoum and declared their famous three “‘Nos’ — no peace with Israel, no talks with Israel and no recognition of Israel.
- But it did not last long. After the death of Egypt President Gamal Abdel Nasser, his successor Anwar Sadat started making plans to get Sinai back from Israel.
- His efforts, coupled with American pressure on Israel, led to the Camp David Accords of 1978 with Israel’s withdrawal.
Significance of the deal
- It’s a landmark agreement given that the UAE is only the third Arab country and the first in the Gulf region to establish diplomatic relations with Israel.
- In 1994, Jordan became the second Arab country to sign a peace treaty with Israel.
- The UAE-Israel agreement comes after 26 years. If more countries in the Gulf follow the UAE’s lead, it would open a new chapter in Arab-Israel ties.
Why did the UAE sign the agreement?
- The old enmity between Arab countries and Israel has dissipated.
- The Sunni Arab kingdoms in the Gulf region such as Saudi Arabia and the UAE had developed backroom contacts with Israel over the past several years.
- One of the major factors that brought them closer has been their shared antipathy towards Iran.
- Arab countries have signalled that they are ready to live with Israel’s occupation of Palestine.
What do Arab countries want from Israel?
- Arab countries expect a major change in the status quo on West Bank annexation which would put Israel under political and diplomatic pressure.
- The UAE-Israel agreement has averted that outcome.
- If a Democratic Party (Trump’s opposition and Obama’s allegiance) comes to power and restores the Iran deal, both the Israeli and the Arab blocs in West Asia would come under pressure to live with an empowered Iran.
- A formal agreement and enhanced security and economic ties make the Arab and Israeli sides better prepared to face such a situation.
- So there is a convergence of interests for the UAE, Israel and the U.S. to come together in the region.
Where does it leave the Palestinians?
- Unlike the past two Arab-Israeli peace agreements, Palestinians do not figure prominently in the current one.
- In the present UAE-Israel deal, Israel has not made any actual concession to the Palestinians.
- The Palestinians are understandably upset. They called the UAE’s decision “treason”.
Geopolitical implications of the deal
- The agreement could fast-track the changes that are already underway in the region.
- The Saudi bloc, consisting of Egypt, the UAE, Bahrain and others, see their interests being aligned with that of the U.S. and Israel and their support for Palestine, which Arab powers had historically upheld.
- Turkey and Iran now emerge as the strongest supporters of the Palestinians in the Muslim world.
- This tripolar contest is already at work in West Asia. The UAE-Israel thaw could sharpen it further.
Also read:
West Bank Annexation Plan
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NCC
Mains level: NCC and its mandate
In his I-Day speech, PM spoke about the expansion of the National Cadet Corps (NCC) in coastal and border districts of India.
Try this question:
Q.The Shekatkar Committee recommendations sometimes seen in the news are related to:
a) Modernization of Railways b) Modernization of Defence c) Road Infrastructure d) Cashless Payments
About NCC
- The NCC, which was formed in 1948, has its roots to British era uniformed youth entities like University Corps or University Officer Training Corps.
- It enrols cadets at the high school and college level and also awards certificates on completion of various phases.
- Headed by a Director-General of three-star military rank, the NCC falls under the purview of MoD and is led by serving officers from the Armed forces at various hierarchical positions.
- The NCC currently has 17 regional directorates which govern the NCC in units in various states or groups of states and union territories.
- Each school and college units have Associate NCC Officers and cadets are also assigned various leadership roles in the form of cadet appointments.
- NCC has a dual funding model where both the centre and states or union territories provide budgetary support.
Training the cadets
- The NCC cadets receive basic military training at various levels and also have academic curriculum basics related to Armed forces and their functioning.
- Various training camps, adventure activities and military training camps are an important aspect of NCC training.
- NCC cadets have played an important role over the years in relief efforts during various emergency situations.
- During the ongoing pandemic, over 60,000 NCC cadets have been deployed for voluntary relief work in coordination with district and state authorities across the country.
PM’s announcement
- Expansion of NCC in the border and coastal area has been under consideration of the Ministry of Defence for quite some time.
- PM took this I-Day to announce that from the 173 coastal and border districts, one lakh cadets, a third of them girls, will be trained.
- Currently, the NCC has the strength of around 14 lakh cadets from Army, Navy and Air Force wings.
- Border and coastal areas will get trained manpower to fight with disasters. Youth will acquire the required skills for careers in armed forces.
Significance of expansion
- In the coastal regions, where youth are already familiar with the sea, the training will increase interest in careers in Navy, Coast Guard and also Merchant shipping avenues.
- In the border area, the trained cadets can play an important role in various contingencies and also in supporting roles to the Armed forces in various roles.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Health ID System
Mains level: Developing digital health infrastructure
In his address to the nation on Independence Day, the PM has launched the National Digital Health Mission which rolls out a national health ID for every Indian.
Try this question for mains:
Q.What is the National Health ID System? How will it benefit transforming healthcare facilities in India?
National Health ID System
- This system finds its roots in a 2018 NITI Aayog proposal to create a centralised mechanism to uniquely identify every participating user in the National Health Stack.
- It will be a repository of all health-related information of a person.
- According to the National Health Authority (NHA), every patient who wishes to have their health records available digitally must start by creating a Health ID.
- Each Health ID will be linked to a health data consent manager — such as National Digital Health Mission (NDHM).
- The Health ID is created by using a person’s basic details and mobile number or Aadhaar number.
- This will make it unique to the person, who will have the option to link all of their health records to this ID.
What was the original proposal for the health ID?
- The National Health Policy 2017 had envisaged creation of a digital health technology eco-system aiming at developing an integrated health information system.
- In the context of this, the central government’s think-tank NITI Aayog, in June 2018, floated a consultation of a digital backbone for India’s health system — National Health Stack.
- As part of its consultation, NITI Aayog proposed a Digital Health ID to greatly reduce the risk of preventable medical errors and significantly increase the quality of care.
Stakeholders in the national health ID
- As envisaged, various healthcare providers — such as hospitals, laboratories, insurance companies, online pharmacies, telemedicine firms — will be expected to participate in the health ID system.
Back2Basics:
National Digital Health Mission (NDHM)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Contempt of Court and its types
Mains level: Contempt of Court and associated issues
A three-judge Bench of the Supreme Court has found a famous civil rights lawyer guilty of criminal contempt by ‘scandalizing the court’.
Try this question for mains:
Q.What is Contempt of Court? Discuss, how free speech can lead to the contempt of courts?
Contempt of Court
- According to the Contempt of Courts Act, 1971, contempt of court can either be civil contempt or criminal contempt.
- Civil contempt means willful disobedience to any judgment, decree, direction, order, writ or another process of a court or willful breach of an undertaking given to a court.
- On the other hand, criminal contempt means the publication (whether by words, spoken or written, or by signs, or by visible representations, or otherwise) of any matter or the doing of any other act whatsoever which
- Scandalizes or tends to scandalize, or lowers or tends to lower the authority of, any court; or
- Prejudices, or interferes or tends to interfere with, the due course of any judicial proceeding; or
- Interferes or tends to interfere with, or obstructs or tends to obstruct, the administration of justice in any other manner.
What did the court rule in this case?
- The tweets had the effect of attempting to destabilize Indian democracy.
- A defamatory publication concerning “the judge is a serious impediment to justice”.
- The court could not ignore the disrespect and disaffection created by the “scurrilous” tweets.
- If such an attack is not dealt with a requisite degree of firmness, it may affect the national honour and prestige in the comity of nations.
A suo motu action
- The prior consent of the Attorney General (AG) of India is not required to suo motu initiate the inherent contempt powers of the Supreme Court.
- The Contempt of Court Act of 1971 cannot limit this power of the court. The statute only provides the procedure in which such contempt is to be initiated.
- The suo motu contempt powers of the top court are drawn from Article 129 of the Constitution, which says the Supreme Court, as a court of record, has the power to punish for contempt of itself.
What would be the penalty?
- The Contempt of Court Act of 1971 punishes with imprisonment that may extend to six months or fine of ₹ 2,000 or both.
- This is provided in case the accused may be discharged or the punishment awarded may be remitted on apology being made to the satisfaction of the court.
Also read:
Explained: What is Contempt of Court?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Positive Pay Mechanism
Mains level: Not Much
The new ‘Positive Pay’ mechanism was recently introduced by the Reserve Bank of India (RBI).
Try this PYQ:
With reference to digital payments, consider the following statements:
- BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
- While a chip-pin debit card has four factors authentication, BHIM app has only two factors of authentication.
Which of the statements given above is/are correct? (CSP 2018)
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
What is the move?
- Issuers will be able to send all details to their bank, thereby ensuring faster clearance of cheques above Rs 50,000.
- All cheques will be processed as per the information sent by the account holder at the time of issuance of cheques.
- This will cover approximately 20 per cent of transactions by volume and 80 per cent by value.
- It will make cheque payments safer and reduces instances of frauds.
What is Positive Pay Mechanism?
- Positive Pay is a fraud detection tool adopted by banks to protect customers against forged, altered or counterfeit cheques.
- It crosses verifies all details of the cheque issued before funds are encashed by the beneficiary.
- In case of a mismatch, the cheque is sent back to the issuer for examination.
- By following such a system, a bank knows of a cheque being drawn by the customer even before it is deposited by the beneficiary into his/her account.
How does the mechanism work?
- Under Positive Pay feature, the issuer will first share the details of the issued cheque like cheque number, date, name of the payee, account number, amount and the likes through his/her net banking account.
- Along with this, an image of the front and reverse side of the cheque is also required to be shared, before handing it over to the beneficiary.
- When the beneficiary submits the cheque for encashment, the details are compared with those provided to the bank through Positive Pay.
- If the details match, the cheque is honoured. However, in the case of mismatch, the cheque is referred to the issuer.
- In this way, any cheque where any sort of fraud has happened cannot be cleared at all and hence, a depositor’s money can be protected.
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