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Steel Industry – Current challenges, National Steel Policy 2017, etc

How friendly government policies can boost Indian steel industry

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Issues faced by steel industry

The steel industry forms the backbone of the economy. This article highlights the difficulties of the industry magnified the pandemic. Ans suggest ways to revive demand.

BAT could help

  • Introduction of a Border Adjustment Tax, known as BAT could help India’s steel industry.
  • Many countries use BAT to protect local steel manufacturers.
  • With economic pain unleashed by the pandemic and threat posed by Chinese state-subsidised steel imports, India hardly affords not to BAT.
  • BAT would create a level playing field.

Why Indian steel industry is non-competitive

  • Indian steel manufacturers bear multiple local taxes – electricity and cross-subsidy duties, clean energy cess and royalties on ore and there are more.
  • These taxes make up 12% of the price of steel.
  • In rival markets, these levies either do not exist or are comparatively lower.
  • So Indian steel is non-competitive even before it leaves our plants.

Impact of Covid

  • Impact of Covid on India’s biggest steel mills, which make up 65% of the country’s annual output of about 110 MT, was calamitous.
  • During the pandemic, the mills’ massive blast furnaces continued to burn.
  • Closure and reopening of furnaces can take up to 12 weeks; the process is complex, and maintenance costs are high.
  • So, the furnaces were burning during the lockdown.
  • India’s mills have continued to bear high fixed costs: firing furnaces but without making much steel.
  • Because of this, smaller mills, which account for about a third of national output, lack the strengths to survive a trough, and many have capitulated.

Significance of Steel Industry

  • Steel is front and centre in India’s recovery.
  • The industry rests on mutual support – investment is made by entrepreneurs, the government offers supportive policies.
  • Government will lend weight to India’s competitive and comparative advantages, especially in manufacturing, in a post covid-19 economic order.
  • Indian steel’s guiding light is a steel ministry vision of 300MT of capacity by 2030, currently at about 138 MT.
  • The pandemic will put pressure on this target.

Short term hurdles faced by Steel industry

  • Government capital expenditure is diverted to public health.
  • Real estate builders have an interest in large scale construction.
  • Car manufacturing will not see upturn until the second half of the year.
  • The pandemic has also hurt demand for capital utilisation, weighing heavily on capex.

How the demand can be improved

  • Steel needs more infrastructure projects. Also, the fillip would be for the government to pay on time. Expedite the work.
  • An initiative to consign old cars to the scrap heap would significantly lift demand for steel to build replacement cars.
  • Improving the logistics chain would help transport finished goods and materials more quickly and less expensively.
  • Make steel the material of choice in the construction of flyovers, roads bridges and crash barriers, improving their safety, durability and, as a result, their life-cycle cost.
  • Indian mills possess world-class infrastructure and capacities and have integrated backwards by acquiring mining rights, partly to mitigate costs. As mentioned, one is high taxes on input materials such as energy.

Consider the question “Examine the issues Indian steel industry faces. Suggest the ways to make it more competitive.”

Conclusion

A revived economy means a revived steel industry. The government should provide the wider and deeper support to the government to bring this vital sector back on the track and make help achieve global competitiveness.

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Finance Commission – Issues related to devolution of resources

For the sake of sound fiscal federalism

Note4Students

From UPSC perspective, the following things are important :

Prelims level: FRBM Act

Mains level: Paper 2- Issue of devolution to state under the recommendations of 14th finance commission.

Faultlines in the Centre-State fiscal relations have widened due to Covid. This article examines how States are not getting what they should as per the 14th Finance Commission report.

Centre-state tussle

  • The tussle for the rights of States has been focused on Article 356.
  • Partial behaviour by the Governors, regional party governments were politically destabilised.
  • Little was done to implement the report of  Justice R.S. Sarkaria Commission on Centre-State relations.
  • The new faultline in the Centre-State relation could be over the way report of 14th Finance Commission is being implemented.
  • This began well before COVID-19, but the pandemic and its economic disruption have brought things to an edge.

Issues over the implementation of 14th Finance Commission report

  • The 14th Finance Commission report in 2015 promised devolution of more finances to the States.
  • As part of the process, States would have new responsibilities, especially in the social sector.
  •  The Goods and Services Tax (GST) regime was also justified as a grand bargain that would eventually leave all States better off.
  • In reality, tax devolution to States has been consistently below 14th Finance Commission projections.
  • One reason for this has been the economic slowdown, and lower-than-expected GST collections.
  • The shortfall in GST collection for 2018-2019 was 22% when compared to projections.
  • Payments to the States have been delayed as well.
  • There is a ₹6.84 lakh crore gap between what the 14th Finance Commission promised to States and what they have received.
  • States undertook programmes and projects spending 46% more than the Central Government; today the figure is 64%.
  • Despite spending less than the states the Centre’s fiscal deficit exceeds the consolidated State deficit by 14%.

Need to revisit the FRBM provisions

  • Due to pandemic, the fiscal deficit for States, collectively, is inevitably going to breach the projection of 2.04%.
  • As per provisions of the Fiscal Responsibility and Budget Management (FRBM) Act, the GSDP can actually accommodate a fiscal deficit of 3%.
  • Now, post-pandemic, this limit will be crossed.
  • The FRBM has an “escape clause” that allows for a one-time relaxation of the fiscal deficit threshold upto 0.5% in a time of exigency.
  • The escape clause has been utilised by the Centre but it has proven woefully insufficient in addressing the current crisis.
  • Fiscal policymakers and technocrats agree that the rigidity of the FRBM has to be revisited.
  • It should allow for greater flexibility and consultation as to when and how the “escape clause” can be applied.
  • The Centre has gone in for subjective interpretation, imposing conditions that are outside the scope of the FRBM.

Consider the question “Fiscal tensions have emerged as  a new front in the Centre-State relations. Suggest the steps the Centre should take to address it.”

Conclusion

Centre government needs to be more considerate of the financial woes of the State and try to deliver on the recommendations of the 14th Finance Commission report.

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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

Do we need Fiscal Council

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Fiscal Council and why it won't be the solution

Why there is a need for Fiscal Council?

  • With a complex polity and manifold development challenges, India need institutional mechanisms for prudent fiscal practices.
  • An independent fiscal council can bring about much needed transparency and accountability in fiscal processes across the federal polity.
  • International experience suggests that a fiscal council improves the quality of debate on public finance, and that, in turn, helps build public opinion favourable to fiscal discipline.
  • In a globalised world of enormous capital flows, market volatility across the world and especially in emerging markets, in response to monetary policy changes in major economies, and geopolitical tensions that ebb and flow, causing currencies and commodity prices to swing, countries like India need macroeconomic management as an active function round the year.
  • Also, it is supposed to report to the parliament regarding the practicability of government forecasts in the budget. This will make executive more responsible in budget preparation.
  • For the last eight years the projections of the government has fallen short by a consistent 10 percent, leading to fund cuts in the middle of the year. Thus, an independent Fiscal council would evaluate budget proposals and forecasts using objective criteria.
  • This would also boost confidence in global credit rating agencies about government’s fiscal commitment.

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Parliament – Sessions, Procedures, Motions, Committees etc

Quorum not needed for routine standing committee meetings

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Quorum, Parliamentary committees

Mains level: Not Much

The opposition parties in the Rajya Sabha has contradicted the holding the virtual meetings of standing committees to ensure quorum during deliberations.

Try this question from CSP 2018:

Q.With reference to the Parliament of India which of the following Parliamentary Committees scrutinizes and reports to the House whether the powers to make regulations, rules, sub rules, bylaws, etc. conferred by the Constitution or delegated by the Parliament is being properly exercised by the Executive within the scope of such delegation?

(a) Committee on Government Assurances

(b) Committee on Subordinate Legislation

(c) Rules Committee

(d) Business Advisory Committee

What is Quorum?

  • A quorum is the minimum number of members of a deliberative assembly necessary to conduct the business of that group.
  • The requirement for a quorum is protection against totally unrepresentative action in the name of the body by an unduly small number of persons.
  • Article 100 (3) of the Constitution of India stipulates that at least 10% of the total number of members of the House must be present to constitute the quorum to constitute a meeting of either House of Parliament.
  • Article 189 (3) and (4) provides for similar provisions for State Legislatures.
  • For example, if the House has a total membership of 500, at least 50 members must be present for the House to proceed with its business.

What did RS Secretariat say over the requirement of quorum?

  • Parliamentarian these days are unable to travel to Delhi for obvious COVID reasons.
  • The Rajya Sabha secretariat has said that quorum was essential only when the committees are making decisions or adopting reports and not during routine deliberations.

Back2Basics: What are Standing Committees?

  • Standing Committee is a committee consisting of Members of Parliament.
  • It is a permanent and regular committee which is constituted from time to time according to the provisions of an Act of Parliament or Rules of Procedure and Conduct of Business.
  • The work done by the Indian Parliament is not only voluminous but also of a complex nature, hence a good deal of its work is carried out in these Parliamentary Committees.
  • Standing Committees are of the following kinds :
  1. Financial Standing Committees (FSC)
  2. Department Related Standing Committees (DRSC)
  3. Others Standing Committees (OSC)

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International Space Agencies – Missions and Discoveries

Carbon enrichment of the Universe

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Carbon enrichment of the Universe

Mains level: Formation of the universe and the Big Bang

A recent study has provided new insights on the origins of the carbon in our galaxy.

Try this question from CSP 2016:

Q.Consider the following:

  1. Photosynthesis
  2. Respiration
  3. Decay of organic matter
  4. Volcanic action

Which of the above add carbon dioxide to the carbon cycle on earth?

(a) 1 and 4 only

(b) 2 and 3 only

(c) 2, 3 and 4 only

(d) 1, 2, 3 and 4

Why study Carbon?

  • Carbon is essential for life: It is the simple building block of all the complex organic molecules that organisms need.
  • It is known that all the carbon in the Milky Way came from dying stars that ejected the element into their surroundings.
  • What has remained debated, however, is what kind of stars made the major contribution.
  • The study shows the analysis of white dwarfs — the dense remnants of a star after its death.

How does carbon come from stars?

  • Most stars — except the most massive ones — are doomed to turn into white dwarfs.
  • When the massive ones die, they go with a spectacular bang known as the supernova.
  • Both low-mass and massive stars eject their ashes into the surroundings before they end their lives.
  • And these ashes contain many different chemical elements, including carbon.

How is it synthesized?

  • Both in low-mass stars and in massive stars carbon is synthesized in their deep and hot interiors through the triple-alpha reaction that is the fusion of three helium nuclei.
  • In low-mass stars, the newly synthesized carbon is transported to the surface [from the interiors] via gigantic bubbles of gas and from there injected into the cosmos through stellar winds.
  • Massive stars enrich the interstellar medium with carbon mostly before the supernova explosion, when they also experience powerful stellar winds.

Findings of the news research

  • It was earlier debated that whether the carbon in the Milky Way originated from low-mass stars before they became white dwarfs or from the winds of massive stars before they exploded as supernovae.
  • The new research suggests that white dwarfs may shed more light on carbon’s origin in the Milky Way.
  • The researchers measured the masses of the white dwarfs, derived their masses at birth, and from there calculated the “initial-final mass relation”.
  • The IFMR is a key astrophysical measure that integrates information of the entire life cycles of stars.
  • They found that the relationship bucked a trend — that the more massive the star at birth, the more massive the white dwarf left at its death.
  • So far, stars born roughly 1.5 billion years ago in our galaxy were thought to have produced white dwarfs about 60-65% the mass of our Sun.

What explains this?

  • From an analysis of the initial-final mass relation around the little kink, the researchers drew their conclusions about the size range for the stars that contributed carbon to the Milky Way.
  • Stars more massive than 2 solar masses, too, contributed to the galactic enrichment of carbon.
  • Stars less massive than 1.65 solar masses did not. In other words 1.65-Msun [1.65 times the mass of the Sun] represents the minimum mass for a star to spread its carbon-rich ashes upon death.

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Skilling India – Skill India Mission,PMKVY, NSDC, etc.

[pib] ASEEM Portal

Note4Students

From UPSC perspective, the following things are important :

Prelims level: ASEEM Portal

Mains level: Atmanirbhar Bharat

Union Ministry of Skill Development and Entrepreneurship has launched Aatmanirbhar Skilled Employee-Employer Mapping (ASEEM) portal to help skilled people find sustainable livelihood opportunities.

There are various web/portals/apps with peculiar names such as YUKTI, DISHA, SWAYAM etc. Their core purpose is similar with slight differences. Pen them down on a separate sheet.

ASEEM Portal

  • ASEEM refers to all the data, trends and analytics which describe the workforce market and map demand of skilled workforce to supply.
  • It is developed and managed by National Skill Development Corporation (NSDC) in collaboration with Bengaluru-based Company named Betterplace.
  • It is an AI-based portal which will map details of workers based on regions and local industry demands and will bridge the demand-supply gap of skilled workforce across sectors.
  • It will provide employers with a platform to assess the availability of a skilled workforce and formulate their hiring plans.
  • It will also provide real-time granular information by identifying relevant skilling requirements and employment prospects.

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Tribes in News

Rabari, Bharvad and Charan Tribes of Gujarat

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Tribes mentioned in the newscard

Mains level: NA

The Gujarat government will constitute a commission to identify the members of Rabari, Bharvad and Charan communities who are eligible to get the benefits of Schedule Tribe (ST) status.

Try this question from CSP 2017:

Q.Every year, a monthlong ecologically important campaign/festival is held during which certain communities/ tribes plant saplings of fruit-bearing trees. Which of the following are such communities/ tribes?

(a) Bhutia and Lepcha

(b) Gond and Korku

(c) lrula and Toda

(d) Sahariya and Agariya

About the Tribes

(1) Rabari

  • The Rabari, also called the Rewari are an indigenous tribal caste of nomadic cattle and camel herders and shepherds that live throughout northwest India, primarily in the states of Gujarat, Punjab and Rajasthan.
  • The word “Rabari” translates as “outsiders”, a fair description of their primary occupation and status within Indian society.
  • They speak ‘Bhopa’ which is a mixture of Gujarati, Kachchi, Marwari words and Pharasi (Persian) and use Gujarati script.
  • The Rabari are known for their distinctive art, particularly the mirrored and whitewashed mud sculpture-work that adorns their homes and villages.
  • Rabari women are responsible for this artwork and also traditionally spin the wool from their sheep and goats, and give it to local weavers to make their woollen skirts, veils, blankets and turbans.

(2) Bharvad

  • The Bharwad are tribals primarily engaged in herding livestock.
  • The Bharwad name may derive from the Gujarati word badawad, constructed from bada (sheep) and wada (a compound or enclosure).
  • The Bharwads have numerous subgroups known as ataks or guls (clans) whose main purpose is to determine eligibility for marriage.
  • Constrained exogamy is practised between clans.

(3) Charan

  • The Charan, also called Gadhvi, is a small tribe in Gujarat and the name Charan is derived from the word ‘Char’ which means grazing.
  • Members of the caste are considered to be divine by a large section of society.
  • Women of the caste are adored as mother goddesses by other major communities of this region.

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Rohingya Conflict

In news: Bhashan Char Island

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Bhashan Char Island and its location

Mains level: Rohingya Crisis

Bangladesh has announced that it will not move the Rohingyas settled on the Bhashan char island amid Corona pandemic.

Try this question from CSP 2018:

Q.Which one of the following pairs of islands is separated from each other by the ‘Ten Degree Channel’?

(a) Andaman and Nicobar

(b) Nicobar and Sumatra

(c) Maldives and Lakshadweep

(d) Sumatra and Java

Bhashan Char Island

  • Bhasan Char also known as Char Piya, is an island in Hatiya, Bangladesh.
  • The island was formed with Himalayan silt in 2006 spanning 40 square kilometres.
  • It is underwater from June to September annually because of the monsoon, and it has no flood fences.
  • In June 2015, the Bangladeshi government suggested resettling Rohingya refugees on the island under its Ashrayan Project.
  • The proposal was characterized by the UN Refugee Agency as “logistically challenging”.

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Foreign Policy Watch: India-China

Broader strategic challenge of dealing with China

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- India-China tension and India's response

  • Identifying the nature of the threat posed by China is important to formulate a response. This article discusses the plan of action on the diplomatic, strategic and economic front to deal with Chinese aggression.

Economic angle of China’s expansionism

  • The Chinese growth model needed to find subservient emerging markets.
  • In these markets, China can park huge debts and make investments to keep feeding China’s high growth rates.
  • Friendly foreign debt-investment markets were needed to compensate for over-investment at home.
  • The Belt and Road Initiative was rolled out as a meeting point for China’s geo-strategic and geo-economic interests.
  • China has expanded its global footprint by signing on about 100 countries to the BRI.
  • China has made aggressive moves on most of its non-submissive neighbours in the South China Sea.
  • China has also made moves against its traditional rivals like Japan and Taiwan to independent-minded nations like South Korea and Australia.
  • China sees itself as a global power whose time has come.

India needs to play clearer role

  • Rise of China is shaking up global alignments and shaping new world order.
  • The Trump administration is increasingly being criticised for not providing global leadership.
  • India could afford to be largely non-aligned during the 20th century Cold War.
  • Our size and economic momentum necessitate that we play a clearer role in the Cold War’s 21st-century sequel.
  • India’s foreign policy has lacked a clear vision about China.
  • India has been deepening our strategic relationship with the US but without wanting to alarm China.

India’s relation with neighbours

  • India’s relations with other neighbouring nations have also become a cause of concern.
  • Pakistan has practically become a minion state for the Chinese – the $62-billion CPEC is a case in the point.
  • Nepal is no longer on our list of all-weather friends.
  • Chinese influence is growing in Sri Lanka and Bangladesh — both signatories to the BRI.
  • And just last week, Beijing, sent another appallingly stern message to our loyal friend, Bhutan, by making ridiculous territorial claims.

What should be India’s plan of action

  • Dealing with China will require conviction and exercising a range of military, diplomatic and economic options.
  • One forum we need to build on and provide leadership to is the Quadrilateral Security Dialogue.
  •  India should now propose the expansion of the Quad’s scope with a possible exploration of a collective defence architecture like NATO.
  • The membership of the Quad should be expanded to include Vietnam, South Korea, New Zealand, and Malaysia.
  • On the economic front, India must welcome the US proposal to expand G7 to include India, Russia, Australia and South Korea without China as a member.
  • Next area of focus should be strengthening ties with our neighbourhood.
  • Effort must be made to regain the relationship with Russia.

Conclusion

China must be made to choose: Is it willing to push the equally proud, equally numerous, equally historical and glorious civilisation to the south in this long-term direction for a few square kilometres of territory and a round of chest-thumping?

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Electoral Reforms In India

Judiciary and criminalisation in politics

Note4Students

From UPSC perspective, the following things are important :

Prelims level: The SC judgement

Mains level: Paper 2- Electoral reforms

This article discusses the issue of criminalisation in politics and the reasons for its persistence despite several judgements by the Supreme Courts to deal with the issue.

The Feb 2020 SC order

  • In a February 2020 judgement the Supreme Court has asked the political parties to state the reasons for the selection of candidates.
  • The Court also asked to specify as also as to why other individuals without criminal antecedents could not be selected as candidates.
  • If a political party fails to comply, it would be “… in contempt of this Court’s orders/directions.”
  • The political party and its leadership would for the first time have to publicly own up to criminalisation of politics.
  • The judgment notes that “ in 2019 as many as 43% of MPs had criminal cases pending against them”.
  •  India is the only democratic country with a free press where we find a problem of this dimension.

What did the earlier orders require?

  • (a) each candidate shall submit a sworn affidavit giving financial details and criminal cases.
  • (b) each candidate shall inform the political party in writing of criminal cases against him or her.
  • (c) the party shall put up on its website and on social media as well as publish in newspapers the names and details of such candidates.

Why the problem persists

  • Survey after survey show that people around the country are unhappy with the quality of governance.
  • Given limited choices, they vote as best as they can.
  • Meanwhile, electoral bonds bring secrecy back into political funding.
  • Several laws and court judgments have not helped much, as the data show.
  • There lack of enforcement of laws and judgments.
  • It is also not clear what penalty would be imposed if the recent orders are not followed.

Way forward

  •  Monitoring the affidavits of candidates can help in compliance.
  • Working with the EC to ensure that information is promptly available on their websites.
  • Widely circulating this information to voters using all the social media tools available.
  • Monitoring the compliance with the Supreme Court judgment to see if details of tainted candidates are promptly put up on their websites, and on their social media handles, along with proper reasons for giving them ticket.
  • Voters also need to be vigilant about misuse of money, gifts and other inducements during elections.
  • The waters will be muddied with fake news, trolling, and fanciful claims, concerted efforts to tackle the menace of fake news are required.

Consider the question “Despite several judgements from the Supreme Court the issue of criminalisation in politics still persists. Examine the reasons for the persistence of the issues. Suggest the measures to deal with the issues.”

Conclusion

we may not see dramatic changes in the quality of candidates. Campaigns may continue to be more and more personal and even abusive. But all these steps are required, however insignificant they may seem.

Original link

https://www.thehindu.com/opinion/lead/owning-up-to-criminalisation-in-politics/article32035186.ece

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Contention over South China Sea

Malabar Naval Exercise to include Australia

Note4Students

From UPSC perspective, the following things are important :

Prelims level: QSD, Malabar Exercise

Mains level: Global move to curb Chinese overambitions

India has finally planned to invite Australia to join the annual Malabar naval exercise that has so far included just Japan and the U.S., in a move that could risk China’s ire.

Go through the list for once. UPSC may ask a match the pair type question asking exercise name and countries involved.

[Prelims Spotlight] Defence Exercises

About Ex. Malabar

  • Exercise Malabar is a trilateral naval exercise involving the United States, Japan and India as permanent partners.
  • Originally begun in 1992 as a bilateral exercise between India and the United States, Japan became a permanent partner in 2015.
  • Past non-permanent participants are Australia and Singapore.
  • The annual Malabar series began in 1992 and includes diverse activities, ranging from fighter combat operations from aircraft carriers through Maritime Interdiction Operations Exercises.

Significance of Australia’s inclusion

  • Earlier, India had concerns that it would give the appearance of a “quadrilateral military alliance” aimed at China.
  • Now both look forward to the cooperation in the ‘Indo-Pacific’ and the strengthening of defence ties.
  • This has led to a convergence of mutual interest in many areas for a better understanding of regional and global issues.
  • Both are expected to conclude the long-pending Mutual Logistics Support Agreement (MLSA) as part of measures to elevate the strategic partnership.

Back2Basics: Quadrilateral Security Dialogue (QSD)

  • The QSD is an informal strategic forum between the United States, Japan, Australia and India that is maintained by semi-regular summits, information exchanges and military drills between member countries.
  • The forum was initiated as a dialogue in 2007 by Prime Minister Shinzo Abe of Japan, with the support of Vice President Dick Cheney of the US, PM John Howard of Australia and PM Manmohan Singh of India.
  • The dialogue was paralleled by joint military exercises of an unprecedented scale, titled Exercise Malabar.
  • The diplomatic and military arrangement was widely viewed as a response to increased Chinese economic and military power, and the Chinese government responded to it by issuing formal diplomatic protest.
  • The QSD was recently revived considering the tensions in the South China Sea caused primarily by China and its territorial ambitions.

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J&K – The issues around the state

International Covenant on Civil and Political Rights (ICCPR)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: UNCAT, ICCPR

Mains level: UN intervention in Kashmir

United Nations (UN) Special Rapporteurs have made public their third communication forwarded to India expressing concern over alleged excessive use of force, ill-treatment during arrests and detentions.

Practice question for mains:

Q.There is an urgent need for reforming the criminal justice system in India in light of rising cases of custodial torture and killings. Comment.

What is the issue?

The UN urged the Indian government to conduct a prompt and impartial investigation into the allegations of arbitrary killings, torture and ill-treatment and to prosecute suspected perpetrators under articles 6 and of the International Covenant on Civil and Political Rights (ICCPR), and articles 7 and 12 of the Committee Against Torture (CAT).

What are the conventions cited by the UN?

1) International Covenant on Civil and Political Rights (ICCPR)

  • The ICCPR is a multilateral treaty adopted by UN General Assembly Resolution on 16 December 1966, and in force from 23 March 1976.
  • The covenant commits its parties to respect the civil and political rights of individuals, including the right to life, freedom of religion, freedom of speech, freedom of assembly, electoral rights and rights to due process and a fair trial.
  • As of September 2019, the Covenant has 173 parties and six more signatories without ratification.
  • It is part of the International Bill of Human Rights, along with the International Covenant on Economic, Social and Cultural Rights (ICESCR) and the Universal Declaration of Human Rights (UDHR).
  • It is monitored by the UN Human Rights Committee (a separate body to the UN Human Rights Council).

2) United Nations Convention Against Torture (UNCAT)

  • The UNCAT is an international human rights treaty, under the review of the UN and was adopted in 1984.
  • It aims to prevent torture and other acts of cruel, inhuman, or degrading treatment or punishment around the world.
  • The convention requires states to take effective measures to prevent torture in any territory under their jurisdiction and forbids states to transport people to any country where there is reason to believe they will be tortured.
  • Since the convention’s entry into force, the absolute prohibition against torture and other acts of cruel, inhuman, or degrading treatment or punishment has become accepted as a principle of customary international law.

3) The Committee against Torture (CAT)

  • It is a body of human rights experts that monitors implementation of the Convention by State parties.
  • The Committee is one of eight UN-linked human rights treaty bodies.
  • All state parties are obliged under the Convention to submit regular reports to the CAT on how rights are being implemented.
  • Upon ratifying the Convention, states must submit a report within one year, after which they are obliged to report every four years.
  • The Committee examines each report and addresses its concerns and recommendations to the State party in the form of “concluding observations.”
  • Under certain circumstances, the CAT may consider complaints or communications from individuals claiming that their rights under the Convention have been violated.

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Foreign Policy Watch: India-Middle East

UAE in support of Open Skies Agreement with India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Open Sky Agreements, OST

Mains level: Not Much

The UAE is keen to have an open sky agreement with India.

Open Skies Agreement! Look how confusing does it sound compared to the Open Skies Treaty between the US and Russia.

What is the Open Skies Agreement?

  • The National Civil Aviation Policy, 2016, allows the government to enter into an ‘open sky’ air services agreement on a reciprocal basis with SAARC nations as well as countries beyond a 5,000-kilometre radius from New Delhi.
  • This implies that nations within this distance need to enter into a bilateral agreement and mutually determine the number of flights that their airlines can operate between the two countries.
  • India has open sky agreements with Japan, Greece, Jamaica, Guyana, Czech Republic, Finland, Spain and Sri Lanka.
  • India also has an open sky agreement with the US, among other countries.

Why UAE wants such an agreement with India?

  • There are about 1,068 flights a week between India and the UAE operated by the airlines of the two countries under the bilateral Air Service Agreement.
  • India has open skies policy with SAARC countries and those beyond the 5,000-km radius.
  • UAE wants India to revisit this policy.

Must read:

U.S. set to exit the ‘Open Skies Treaty’ Copy

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Historical and Archaeological Findings in News

[pib] Mongolian Kanjur Manuscripts

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Mongolian Kanjur 

Mains level: Buddhist literature

The Ministry of Culture has taken up the project of reprinting of 108 volumes of Mongolian Kanjur under the National Mission for Manuscripts (NMM).  The first sets of five volumes were presented to the President of India.

Try this question from CSP 2011:

Q.India maintained its early cultural contacts and trade links with Southeast Asia across the Bay of Bengal. For this preeminence of early maritime history of Bay of Bengal, which of the following could be the most convincing explanation/explanations?

(a) As compared to other countries, India had a better ship-building technology in ancient and medieval times.

(b) The rulers of southern India always patronized traders, Brahmin priests and Buddhist monks in this context.

(c) Monsoon winds across the Bay of Bengal facilitated sea voyages.

(d) Both (a) and (b) are convincing explanations in this context.

Mongolian Kanjur

  • Mongolian Kanjur, the Buddhist canonical text in 108 volumes is considered to be the most important religious text in Mongolia.
  • In the Mongolian language ‘Kanjur’ means ‘Concise Orders’- the words of Lord Buddha in particular. It has been translated from Tibetan.
  • It is held in high esteem by the Mongolian Buddhists and they worship the Kanjur at temples and recite the lines of Kanjur in daily life as a sacred ritual.
  • The Kanjur is kept almost in every monastery in Mongolia.
  • The language of the Kanjur is Classical Mongolian and it is a source of providing a cultural identity to Mongolia.

About National Mission for Manuscripts

  • The Mission was launched in February 2003 under the Ministry of Tourism and Culture, with the mandate of documenting, conserving and disseminating the knowledge preserved in the manuscripts.
  • One of the objectives of the mission is to publish rare and unpublished manuscripts so that the knowledge enshrined in them is spread to researchers, scholars and the general public at large.
  • Under this scheme, reprinting of 108 volumes of Mongolian Kanjur has been taken up by the Mission.

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Solar Energy – JNNSM, Solar Cities, Solar Pumps, etc.

[pib] Rewa Solar Project

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Rewa Solar Plant

Mains level: Solar tariff issues in India

The PM has inaugurated the 750 MW Solar Project set up at Rewa, Madhya Pradesh.

Try this question from CSP 2017:

Q. The term ‘Domestic Content Requirement’ is sometimes seen in the news with reference to-

(a) Developing solar power production in our country

(b) Granting licences to foreign T.V. channels in our country

(c) Exporting our food products to other countries

(d) Permitting foreign educational institutions to set up their campuses in our country

Rewa Solar Project

  • This project comprises of three solar generating units of 250 MW each located on a 500-hectare plot of land situated inside a Solar Park (total area 1500 hectare).
  • The Solar Park was developed by the Rewa Ultra Mega Solar Limited (RUMSL), a Joint Venture Company of Madhya Pradesh Urja Vikas Nigam Limited (MPUVN), and Solar Energy Corporation of India (SECI), a PSU.
  • The Project was the first solar project in the country to break the grid parity barrier.
  • This project will reduce carbon emission equivalent to approx. 15 lakh ton of CO2 per year.

Tariff management

  • Compared to prevailing solar project tariffs of approx. Rs. 4.50/unit in early 2017, the Rewa project achieved historic results.
  • It has a first-year tariff of Rs. 2.97/unit with a tariff escalation of Rs. 0.05/unit over 15 years and a levelized rate of Rs. 3.30/unit over the term of 25 years.

Significance of the project

  • The project is also the first renewable energy project to supply to an institutional customer outside the State.
  • The Delhi Metro will get 24% of energy from the project with the remaining 76% being supplied to the State DISCOMs of Madhya Pradesh.
  • The Project also exemplifies India’s commitment to attaining the target of 175 GW of installed renewable energy capacity by the year 2022; including 100 GW of solar installed capacity.

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Modern Indian History-Events and Personalities

Who was Herbert Kleber?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Herbert Kleber and his work

Mains level: NA

With today’s doodle, Google is remembering Dr Herbert David Kleber, who reframed the field of addiction treatment.

Try this question from CSP 2016:

A recent movie titled The Man Who Knew Infinity is based on the biography of-

(a) S. Ramanujan
(b) S. Chandrasekhar
(c) S. N. Bose
(d) C. V. Raman

Herbert Kleber

  • Born on June 19, 1934, in Pittsburgh, Pennsylvania, Dr Kleber studied medicine, where he discovered that psychology was his calling.
  • He viewed addiction as a medical condition rather than a moral failure.
  • He spent years treating people with drug addiction and realized that the treatment needed a new approach backed by scientific research.
  • His new methods of treatment gained an appreciation and he was appointed as the deputy director for demand reduction at the Office of National Drug Control Policy by the then U.S. President George H. W. Bush.
  • He headed many projects on developing new methods to treat individuals with alcohol, cocaine, heroin and alcohol addictions.

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Coronavirus – Health and Governance Issues

Rewriting the social contract to deal with the pandemic

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Gini coefficient

Mains level: Paper 2- Governance in pandemic, role of the government,

The article examines the theoretical basis on which the governments exercise power. That basis is encapsulated in the ‘social contract theory’. The role of government, however, came under the scanner in the pandemic in which the impact of pandemic was different for the different people.

Social contract theory: Then and now

  • In the course of evolution, formed the concept of social groups and resultant rules they would abide by.
  • This is the most rudimentary form of what is known as the ‘social contract theory’.
  • When monarchies and empires prevailed, it was easy to understand a social contract.
  • But democratically elected governments have found it more difficult to derive the same legitimacy.
  • Modern society and modern governments also use the social contract theory to claim legitimacy for their actions.
  • The social contract comprises people agreeing to live as one under common laws and in enforcing those common laws justly.

Modern-day governments’ approach

  • Modern-day governments fundamental credo is that society is best served if a government takes on an executive or sovereign power, with the consent of the people.
  • Governments also use the power democratically invested in them to decide what is in the best interest of the people.
  • Thus, there is a bending of individual free will towards the collective will.
  • So, the social contract is being used by modern governments to justify greater aggrandisement of power in the hands of the sovereign.

Governments role in pandemic and social contract

  • The novel coronavirus pandemic has laid bare the falsity of this image.
  • Access to information about this pandemic has not been equal.
  • Access to resources to avoid the disease has not been equal.
  • And, of course, access to treatment has not been equal.
  • All this led to uneven impact of the pandemic on people belonging to the different strata of the society.

Inequality and the impact of pandemic

  •  All societies have some measure of inequality.
  • However, in deeply unequal societies, where the Gini Coefficient exceeds 0.4, for instance, different strata of society will have very different needs to deal with a crisis of this nature.
  • We have seen societies with lower Gini Coefficients deal with the crisis far better.
  • This is because a uniform approach works perfectly when society is perfectly equal.

Centralised or decentralised approach: Which is better to deal with pandemic?

  • The social contract which imbues a centralised sovereign with overreaching powers has clearly failed on this occasion.
  • The centralised sovereign will work well against a mighty external aggressor, but not against a microscopic pathogen.
  • What is required is not just a decentralised approach but also a state which is sensitive.

Consider the question “The COVID pandemic has impacted the people with varying intensity and its impact was more on societies with more inequality. This highlights the centrality of the government. Critically examine.”

Conclusion

The novel coronavirus cannot be defeated by a centralised government. COVID-19 can only be defeated by an empowered populace. The social contract requires to be rewritten. It does not require anything drastic such as a revolution or anarchy. Rather, it only needs fundamental introspection and rethinking by the governing classes including bureaucrats.

Oped-snap

https://www.thehindu.com/opinion/lead/the-social-contract-needs-to-be-rewritten/article32025342.ece

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Digital India Initiatives

Digitising the state

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Overhauling India's digital payments, accounting and transactions.

This article examines the issues with governments account problems and their implications. It also suggests the ways to deal with the problems with data management in India.It is is line with the suggestions made by the CAG in this regard.

Problem with government account keeping

  • The Union budget grew from Rs 197 crore in 1947 to Rs 30 lakh crore last year.
  • Total government expenditure may be higher than Rs 70 lakh crore. (states+union)
  • But the form and manner of keeping accounts have more or less remained unchanged since Independence.
  • Manual transactions and manual payments often lead to manually entered data at different stages in different databases on different systems.
  • This makes data unreliable, violates the principle of “single source of truth”.
  • This also sabotages transparency and good governance.

Issues with computerisation by government

  • Government “computerisation” has often mechanised manual processes rather than “re-engineered processes”.
  • This has created siloed IT systems.
  • It has created various separate databases that lack modern data sharing protocols for organic linking like APIs (Application Programming Interfaces).
  • It leaves fiscal data being incomparable as basic as salary expenditure across states.
  • It creates the problem of obscurity in which large expenditures are booked under omnibus head called other.
  • Non-traceable actual expenditure against temporary advances drawn or funds drawn on contingent bills.
  • It creates the problem of misclassification so that grants in aid is classified as capital expenditure and bookings under suspense heads.

3 Steps to deal with the issues

1)  100% end-to-end data capture

  • All receipts and expenditure transactions including demands, assessment, and invoices should be received, processed, and paid electronically.

2)  Data governance for standards

  •  Data standards are rules for describing and recording data elements with precise meanings that enable integration, sharing, and interoperability.
  • Prescribing data elements for all transactions will ensure standardisation.
  • This standardisation will clarify ambiguity, minimise redundant data, and create protocols for integration across different databases across entities receiving government funds.
  • It will also integrate entities collecting revenues on behalf of the government, and those discharging core functions on behalf of the government.
  • Government-wide data standards coupled with real-time data captured end-to-end will enable the use of cognitive intelligence tools like analytics, artificial intelligence, machine learning.
  • These tools, will support the establishment of budget baselines, detecting anomalies, data-driven project/activity costing, performance comparisons across departments and agencies, and benchmarking.

3) Technology architecture

  • The element of technology architecture must ensure that all IT government systems should conform to a prescribed open architecture framework.
  • This framework should ensure robust security and maintaining privacy.

How will these 3 steps help

  • It will help in recognising off-budget transactions, the last Union budget took steps towards this fiscal transparency and consolidation.
  • These steps will ensure business continuity: electronic records cannot be lost or misplaced like files or paper records.
  • It will also provide an incontrovertible audit trail.
  • It will enable Parliament and legislatures to draw “assurance” that each rupee due to the government has been collected, and each rupee has been spent for the purpose it was allocated.

Consider the question “Government expenditure has increased manifold since 1947 but the form and manner of keeping data have remained more or less the same. In light of this examine the issues with payments, accounting and transactions data system of the government. Suggest the measures to improve it.”

Conclusion

A citizen-centric view of a single source of truth encompassing every rupee of public money would make the 299 remarkable people who wrote India’s Constitution proud of this 21st-century citizen empowerment innovation.

Original Op-ed

https://indianexpress.com/article/opinion/columns/digitising-the-state-6496692/

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NPA Crisis

Need for a Bad Bank

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Bad Banks

Mains level: Asset reconstructions post NPA buzz

The idea of setting up a bad bank often comes up for debate, especially when stress in the banking sector is projected to rise in the near term.

Practice question for mains:

Q. What is a Bad Bank? Discuss how it can rescue the covid induced bad loans in India.

COVID induced NPAs

  • Several economists and agencies project a recession in the Indian economy this year, due to the adverse effects of Covid-19 on economic activity.
  • This will hit the banking and financial sector in particular, as a slump in earnings of companies and individuals could lead to a jump in NPAs, reversing the early trends.
  • Various analysts suggest that in a couple of years, the proportion of stressed assets in the banking system could jump to as high as 18 per cent from around 11 per cent at present.
  • To tackle this upcoming challenge, the banking industry has proposed the setting up of a government-backed bad bank.

What is the Bad Bank?

  • A bad bank is a bank set up to buy the bad loans and other illiquid holdings of another financial institution.
  • The entity holding significant NPAs will sell these holdings to the bad bank at market price.
  • By transferring such assets to the bad bank, the original institution may clear its balance sheet—although it will still be forced to take write-downs.
  • A bad bank structure may also assume the risky assets of a group of financial institutions, instead of a single bank.

What is the recent proposal of a bad bank?

  • The banking sector, led by the Indian Banks Association (IBA), had in May submitted a proposal for setting up a bad bank to the finance ministry and the RBI.
  • The IBA proposed for having equity contribution from the government and the banks.
  • This was based on an idea proposed by a panel on faster resolution of stressed assets in public sector banks headed by former PNB Chairman Sunil Mehta.
  • This panel had proposed an asset management company (AMC), ‘Sashakt India Asset Management’, for resolving large bad loans two years ago.
  • There were talks about creating a bad bank in 2018 too, but it never took shape.

What kind of NPA spike is expected during this outbreak?

  • The impact of Covid-19 and the associated policy response is likely to result in an additional Rs 1,67,000 crore of debt from the top 500 debt-heavy private sector borrowers turning delinquent between FY21 and FY22.
  • Given that 11.57 per cent of the outstanding debt is already stressed, the proportion of stressed debt is likely to increase to 18.21 per cent of the outstanding quantum.

What is the government’s view over Bad Banks?

  • While the finance ministry has not formally submitted its view on the proposal, senior officials have indicated that it is not keen to infuse equity capital into a bad bank.
  • The government’s view is that bad loan resolution should happen in a market-led way, as there are many asset reconstruction companies already operating in the private space.
  • The government has significantly capitalized state-owned banks in recent years and pursued consolidation in the PSU banking space.
  • In the last three financial years, the government has infused equity of Rs 2.65 lakh crore into state-owned banks.
  • These steps, along with insolvency resolution under the IBC, are seen as adequate to tackle the challenge of bad loans.

What is the RBI view?

  • The RBI has so far never come out favourably about the creation of a bad bank with other commercial banks as main promoters.
  • Former RBI Governor Raghuram Rajan had opposed the idea of setting up a bad bank with a majority stake by banks, arguing it would solve nothing.
  • Rajan argued that a government-funded bad bank would just shift loans “from one government pocket (the public sector banks) to another (the bad bank) and did not see how it would improve matters”.
  • Indeed, if the bad bank were in the public sector, the reluctance to act would merely be shifted to the bad bank.
  • Alternatively, if the bad bank were to be in the private sector, the reluctance of public sector banks to sell loans to the bad bank at a significant haircut would still prevail.

Alternatives to a bad bank

  • Many experts argue that the enactment of IBC has reduced the need for having a bad bank, as a transparent and open process is available for all lenders to attempt insolvency resolution.
  • The view is that an IBC-led resolution, or sale of bad loans to ARCs already existing, is a better approach to tackle the NPA problem rather than a government-funded bad bank.

Former RBI Deputy Governor Viral Acharya has proposed two models:

1) Private Asset Management Company

  • The first model is a Private Asset Management Company (PAMC) which would be suitable for sectors where the stress is such that assets are likely to have economic value in the short run, with moderate levels of debt forgiveness.

2) Setting up National Asset Management Company (NAMC)

  • The second model is a NAMC for sectors where the problem is not just of excess capacity, but possibly also of economically unviable assets in the short- to medium-term, such as in the power sector.
  • The NAMC would raise debt for its financing needs, keep a minority equity stake for the government, and bring in asset managers such as ARCs and private equity to manage and turn around the assets.

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Electoral Reforms In India

Postal Ballots in Elections

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Postal ballot

Mains level: Ensuring transparency in elections

The Election Commission has announced that it will allow those above the age of 65 as well as those under home or institutional quarantine to vote using postal ballots during the Bihar elections. Opposition parties are unhappy with the move and termed it unconstitutional.

Try this question from CSP 2017:

Q.Consider the following statements:

  1. The Election Commission of India is a five-member body.
  2. Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections.
  3. Election Commission resolves the disputes relating to splits/mergers of recognized political parties.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(c) 2 and 3 only

(d) 3 only

What is Postal Voting?

  • A restricted set of voters can exercise postal voting.
  • Through this facility, a voter can cast her vote remotely by recording her preference on the ballot paper and sending it back to the election officer before counting.

Who can avail of this facility?

  • Members of the armed forces like the Army, Navy and Air Force, members of the armed police force of a state (serving outside the state), government employees posted outside India and their spouses are entitled to vote only by post.
  • In other words, they can’t vote in person. Voters under preventive detention can also vote only by post.
  • Special voters such as the President of India, Vice President, Governors, Union Cabinet ministers, Speaker of the House and government officers on poll duty have the option to vote by post.
  • But they have to apply through a prescribed form to avail this facility.

What about absentee voters?

  • Recently, the Law Ministry, at the Election Commission’s behest, introduced a new category of ‘absentee voters’, who can now also opt for postal voting.
  • These are voters employed in essential services and unable to cast their vote due to their service conditions.
  • Currently, officials of the Delhi Metro Rail Corporation, Northern Railway (Passenger and Freight) Services and media persons are notified as absentee voters.
  • Last month, senior citizens above the age of 65 and voters who test positive for COVID19 or are suspected to be COVID-affected were allowed to cast their vote by post.

How are votes recorded by post?

  • The Returning Officer is supposed to print ballot papers within 24 hours of the last date of nomination withdrawal and dispatch them within a day.
  • This is done so that the ballot papers reach the concerned voter well before the polling date and she has enough time to send it back before the counting day.
  • Postal ballot papers for members of the Armed Forces are sent through their record offices.
  • For members of the armed police force of a state (serving outside the state), government employees posted outside India and their spouses, the ballot paper can be sent through post or electronically.
  • For remaining categories ballot papers can be delivered personally or through the post.

Why political parties are divided over postal ballots?

  • Opposition parties are not against postal ballots.
  • They have objected to the EC’s decision to allow voters aged 65 and above and those infected or suspected to be infected with COVID19 to vote via postal ballots.
  • This change was effected without consulting political parties.
  • They fear that the move will lead to malpractices and foul play by those parties which are in power and having resources.

Issues with the recent move

  • Allowing those aged 65 and above to vote by postal ballot violates secrecy in voting as a large segment of the population is uneducated and they might seek assistance from others.
  • This will end up disclosing their preferred candidate.
  • This also exposes them to “administrative influence or influence by the Government or the ruling party”.

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