Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Issues of the informal workforce
The article highlights the vulnerabilities of workers in the informal sector and also highlights the issues in the draft rules in the labour codes.
Context
- The budget referred to the implementation of the four labour codes.
- There is also a provision of Rs 15,700 crore for MSMEs, more than double of this year’s budget estimate.
Impact of pandemic on informal workers
- India’s estimated 450 million informal workers comprise 90 per cent of its total workforce, with 5-10 million workers added annually.
- Nearly 40 per cent of these employed with MSMEs.
- According to Oxfam’s latest global report, out of the total 122 million who lost their jobs in 2020, 75 per cent were lost in the informal sector.
- The National Human Rights Commission recorded over 2,582 cases of human rights violation as early as April 2020.
Issues with the draft rules in labour code
- The rush to clear the labour codes and form the draft rules shows little to no intent on part of the government to safeguard workers.
- The draft rules envisage wider coverage through the inclusion of informal sector and gig workers, at present the draft rules apply to manufacturing firms with over 299 workers.
- This leaves 71 per cent of manufacturing companies out of its purview.
- The draft rules mandate the registration of all workers (with Aadhaar cards) on the Shram Suvidha Portal to be able to receive any form of social security benefit.
- This would lead to Aadhaar-driven exclusion and workers will be unable to register on their own due to lack of information on the Aadhaar registration processes.
- A foreseeable challenge is updating information on the online portal at regular intervals, especially by the migrant or seasonal labour force.
- It is also unclear as to how these benefits will be applicable in the larger scheme of things.
Neglect of informal sector
- The draft rules fail to cater to the growing informal workforce in India.
- The growing informal nature of the workforce and the lack of the state’s accountability makes it a breeding ground for rising inequality.
- The workers face the risk of violations of their human and labour rights, dignity of livelihood, unsafe and unregulated working conditions and lower wages.
Consider the question “Assess the impact of covid pandemic on workers in the informal sector. Also examine the issues with the draft rules in the labour code.”
Conclusion
The Code on Social Security was envisaged as a legal protective measure for a large number of informal workers in India but unless the labour codes are made and implemented keeping in mind the realities of the informal sector workers, it will become impossible to bridge the inequality gap.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Criminal Defamation
Mains level: Women safety issues
The Delhi High Court has dismissed former Union Ministers’ criminal defamation complaint against a famous journalist over her tweets accusing him of sexual harassment.
What is the #MeToo Movement?
- The #MeToo movement, with variations of related local or international names, is a social movement against sexual abuse and sexual harassment towards women, where people publicize allegations of sex crimes.
- The phrase “Me Too” was initially used in this context on social media in 2006, on Myspace, by sexual harassment survivor and activist Tarana Burke in the US.
- It is aimed at demonstrating how many women have survived sexual assault and harassment, especially in the workplace.
You must know this!
The Vishaka Guidelines were a set of procedural guidelines for use in India in cases of sexual harassment. They were promulgated by the Indian Supreme Court in 1997 and were superseded in 2013 by the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
What did the court say?
- Women have the right to put their grievances at any platform of their choice and even after decades.
- The court also rejected the argument that the former union minister was a man of a stellar reputation.
What is the case?
- The former minister had filed a criminal defamation case against the person in October 2018 since she did not produce any proof.
- The criminal case was initiated to create a chilling effect against women who spoke out about their experience of sexual harassments.
Legal backing of the acquittal
- Criminal defamation is defined in Section 499 of the IPC as making or publishing any imputation about a person intending to harm, or knowing it will harm the reputation of a person.
- Any statement or article criticizing a person or accusing them of any sort of problematic behaviour will obviously lower their reputation.
- Hence this is always emphasised in legal notices and complaints to courts alleging defamation.
- However, the law recognizes that a person’s reputation can’t be a shield against their own bad behaviour and that there can be various circumstances when outing this bad behaviour is in the public interest.
- This is why Section 499 of the IPC also prescribes several exceptions to claims of defamation.
Is it a win for the survivors?
- It should be noted that this does not necessarily mean that a corresponding criminal case for sexual harassment against the man would be successful.
- This is because the allegations of harassment would have to be proved against the man beyond all reasonable doubt.
- Therefore even though the present defence of truth was accepted by Delhi HC, this would not guarantee that the former minister would be convicted, as the standard of proof is different.
Conclusion
- This judgement will set an example for the reluctant or other ousted women who are willing to revisit the cases of sexual misconduct against them.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Money Bill , Art 110
Mains level: Money Bill- Finance Bill issue
In a pre-emptive move, the opposition has written to Lok Sabha Speaker, urging him not to bypass the Rajya Sabha by declaring key Bills as “money bills”.
What is a Money Bill?
- A money bill is defined by Article 110 of the Constitution, as a draft law that contains only provisions that deal with all or any of the matters listed therein.
- These comprise a set of seven features, broadly including items such as-
- Imposition, abolition, remission, alteration or regulation of any tax
- Regulation of the borrowing of money by the GOI
- Custody of the Consolidated Fund of India (CFI) or the Contingency Fund of India, the payment of money into or the withdrawal of money from any such fund
- Appropriation of money out of the CFI
- Declaration of any expenditure charged on the CFI or increasing the amount of any such expenditure
- Receipt of money on account of the CFI or the public account of India or the custody or issue of such money, or the audit of the accounts of the Union or of a state
- Any matter incidental to any of the matters specified above.
Who controls such bills?
- In the event proposed legislation contains other features, ones that are not merely incidental to the items specifically outlined, such a draft law cannot be classified as a money bill.
- Article 110 further clarifies that in cases where a dispute arises over whether a bill is a money bill or not, the Lok Sabha Speaker’s decision on the issue shall be considered final.
What surrounds the ‘Money Bill’ controversy?
- While all Money Bills are Financial Bills, all Financial Bills are not Money Bills.
- For example, the Finance Bill which only contains provisions related to tax proposals would be a Money Bill.
- However, a Bill that contains some provisions related to taxation or expenditure, but also covers other matters would be considered a Financial Bill.
- Again, the procedure for the passage of the two bills varies significantly. The Rajya Sabha (where the ruling party might not have the majority) has no power to reject or amend a Money Bill.
- However, a Financial Bill must be passed by both Houses of Parliament.
- The Speaker (nonetheless, a member of the ruling party) certifies a Bill as a Money Bill, and the Speaker’s decision is final.
- Also, the Constitution states that parliamentary proceedings, as well as officers responsible for the conduct of business (such as the Speaker), may not be questioned by any Court.
Back2Basics:
What is Finance Bill?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Juvenile Justice Act, 2015
Mains level: Key provisions of Juvenile Justice Act
The Union Cabinet has approved a slew of amendments to the Juvenile Justice (Care and Protection of Children) Act, 2015.
What are the key features of Juvenile Justice (Care and Protection of Children) Act, 2015? Discuss the proposed amendments by the WCD ministry.
Juvenile Justice Act, 2015
- The JJ Act, 2015 replaced the Indian juvenile delinquency law, Juvenile Justice (Care and Protection of Children) Act, 2000.
- It allows for juveniles in conflict with Law in the age group of 16–18, involved in Heinous Offences, to be tried as adults.
- The Act also sought to create a universally accessible adoption law for India.
- The Act came into force from 15 January 2016.
Key features
- Change in nomenclature from ‘juvenile’ to ‘child’ or ‘child in conflict with law’, across the Act to remove the negative connotation associated with the word “juvenile”
- Inclusion of several new definitions such as orphaned, abandoned and surrendered children; and petty, serious and heinous offences committed by children;
- The Act mandates setting up Juvenile Justice Boards and Child Welfare Committees in every district. Both must have at least one woman member each.
- Special provisions for heinous offences committed by children above the age of sixteen years – Under Section 15, special provisions have been made to tackle child offenders committing heinous offences in the age group of 16-18 years (in response to the juvenile convict in Nirbhaya Case).
- Separate new chapter on Adoption to streamline adoption of orphan, abandoned and surrendered children – To streamline adoption procedures for orphan, abandoned and surrendered children, the existing Central Adoption Resource Authority (CARA) is given the status of a statutory body.
- Inclusion of new offences committed against children – Sale and procurement of children for any purpose including illegal adoption, corporal punishment in child care institutions, use of child by militant groups, offences against disabled children and, kidnapping and abduction of children.
- Penalties for cruelty against a child– offering a narcotic substance to a child, and abduction or selling a child has been prescribed.
- Mandatory registration of Child Care Institutions
What are the news amendments?
The amendments are aimed at strengthening the Child Protection set-up to ensure the best interest of children.
(A) More powers to the DM
- These include empowering the DMs and the additional DMs to monitor the functioning of agencies responsible for implementing the JJ Act.
- The District Child Protection Units will function under the DMs.
(B) Evaluating shelter homes
- Before someone sets up a shelter home for children and sends their proposal for registration under the JJ Act to the State, a DM will have to assess their capacity and conduct a background check.
- A DM could also independently evaluate the functioning of the Child Welfare Committee, Special Juvenile Protection Units and registered childcare institutes, the Minister stated.
(C) Members of committees
- The proposed amendments also define the eligibility parameters for the appointment of members of the Child Welfare Committees.
- These committees are tasked to decide on children in need of care and protection and mandate their background checks.
(D) Definition of Children
- It is also proposed to expand the definition of children in need of care and protection and include those children who have been victims of trafficking or drug abuse or child labour.
- It would also include those children who have been abandoned by their guardians.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: XR
Mains level: Climate activism
Delhi Police have named some environmental activists who are volunteers of a global environment movement seeking to call attention to the climate change emergency, in the Greta Thunberg ‘toolkit’ case.
Q.Climate activism is increasingly turning into a propaganda movement. Discuss.
What is Extinction Rebellion?
- The global movement Extinction Rebellion also referred to as ‘XR’, describes itself as a decentralized, international and politically non-partisan movement using non-violent direct action and civil disobedience.
- It aims to persuade governments to act justly on the Climate and Ecological Emergency.
- XR was launched in the UK on October 31, 2018, as a response to a report by the United Nations Intergovernmental Panel on Climate Change (IPCC).
- It had then declared that we only have 12 years to stop catastrophic climate change and our understanding that we have entered the 6th mass extinction event.
- The movement now has a presence in 75 countries, including India.
What does XR want?
- The group has “three core demands” of governments around the world.
- It wants governments to “Tell the Truth”, to “Act Now”, and to “Go Beyond Politics” in order to confront the climate and ecological emergency that the world is faced with.
- It wants them to communicate the urgency to bring change, and reduce greenhouse gas emissions to net-zero by 2025.
- XR seeks to “rebel”, and asks groups to “self-organise”, without the need for anyone’s permission, to come up with collective action plans as long as they adhere to the group’s core principles and values.
What activities have XR done so far?
- The group had announced a “Declaration of Rebellion” at launch, involving a public act of civil disobedience in London, demanding that the government reduce carbon emission to zero by 2025.
- The eventual plan was to coordinate actions in other countries and to engage in an “International Rebellion” in March 2019.
- The XR global website, however, states that the movement is “strictly non-violent”, and that they are “reluctant law-breakers”.
- In April 2019, Greta Thunberg, the teenage Swedish climate activist, lent her support to the group by speaking to its members in London.
XR and India
- The movement claims to have been inspired by 15 major civil disobedience movements around the world, including, apart from Women’s Suffrage and the Arab Spring, India’s struggle for Independence.
- It refers to Mahatma Gandhi’s Salt March in 1930.
- XR’s website says there are 19 groups in the country, including in the cities of Mumbai, Pune, Delhi, Hyderabad, Bengaluru, Kolkata, and Chennai.
Recent events
- One of the group’s early public events was a “die-in” protest organised at Bandra Reclamation in Mumbai in October 2019.
- Participants at “die-in” protests lie on the ground, pretending to be dead.
- Since the city was already seeing protests against the felling of trees at Aarey Colony for the Metro crashed, police did not grant permission for the “die-in” protest.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NHEM
Mains level: Hydrogen as clean fuel
Recently, the Finance Minister in her budget speech formally announced the National Hydrogen Energy Mission which aims for generation of hydrogen from green power resources.
Background
- With this announcement, India has made an uncharacteristically early entry in the race to tap the energy potential of the most abundant element in the universe, hydrogen.
- The proposal in the Budget will be followed up with a mission draft over the next couple of months — a roadmap for using hydrogen as an energy source.
- The mission would have a specific focus on green hydrogen, dovetailing India’s growing renewable capacity with the hydrogen economy.
Hydrogen as an element
- The most common element in nature is not found freely.
- Hydrogen exists only combined with other elements and has to be extracted from naturally occurring compounds like water (which is a combination of two hydrogen atoms and one oxygen atom).
- Although hydrogen is a clean molecule, the process of extracting it is energy-intensive.
- The sources and processes, by which hydrogen is derived, are categorised by colour tabs.
Its types as fuel
- Hydrogen produced from fossil fuels is called grey hydrogen; this constitutes the bulk of the hydrogen produced today.
- Hydrogen generated from fossil fuels with carbon capture and storage options is called blue hydrogen; hydrogen generated entirely from renewable power sources is called green hydrogen.
- In the last process, electricity generated from renewable energy is used to split water into hydrogen and oxygen.
Hydrogen for mobility
- While proposed end-use sectors include steel and chemicals, the major industry that hydrogen has the potential of transforming is transportation.
- This sector contributes a third of all greenhouse gas emissions, and where hydrogen is being seen as a direct replacement of fossil fuels, with specific advantages over traditional EVs.
- Hydrogen fuel cell cars have a near-zero carbon footprint.
- Hydrogen is about two to three times as efficient as burning petrol because an electric chemical reaction is much more efficient than combustion.
We already had H-CNG!
- In October 2020, Delhi became the first Indian city to operate buses running on hydrogen spiked compressed natural gas (H-CNG) in a six-month pilot project.
- The buses will run on a new technology patented by Indian Oil Corp for producing H-CNG — 18 per cent hydrogen in CNG — directly from natural gas, without resorting to conventional blending.
Try this PYQ from CSP 2019:
In the context of proposals to the use of hydrogen-enriched CNG (H-CNG) as fuel for buses in public transport, consider the following statements :
1. The main advantage of the use of H-CNG is the elimination of carbon monoxide emissions.
2. H-CNG as a fuel reduces carbon dioxide and hydrocarbon emissions.
3. Hydrogen up to one-fifth by volume can be blended with CNG as fuel for buses.
4. H-CNG makes the fuel less expensive than CNG.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 4 only
(d) 1, 2, 3 and 4
Green hydrogen has specific advantages
- One, it is a clean-burning molecule, which can decarbonize a range of sectors including iron and steel, chemicals, and transportation.
- Two, renewable energy that cannot be stored or used by the grid can be channelled to produce hydrogen.
- This is what the government’s Hydrogen Energy Mission, to be launched in 2021-22, aims for.
Philosophy behind NHEM
- India’s electricity grid is predominantly coal-based and will continue to be so.
- In several countries that have gone in for an EV push, much of the electricity is generated from renewables — in Norway for example, it is 99 per cent from hydroelectric power.
- Experts believe hydrogen vehicles can be especially effective in long-haul trucking and other hard-to-electrify sectors such as shipping and long-haul air travel.
- Using heavy batteries in these applications would be counterproductive, especially for countries such as India, where the electricity grid is predominantly coal-fired.
Back2Basics: How hydrogen fuel cells work?
- Hydrogen is an energy carrier, not a source of energy.
- Hydrogen fuel must be transformed into electricity by a device called a fuel cell stack before it can be used to power a car or truck.
- A fuel cell converts chemical energy into electrical energy using oxidizing agents through an oxidation-reduction reaction.
- Inside each individual fuel cell, hydrogen is drawn from an onboard pressurized tank and made to react with a catalyst, usually made from platinum.
- As the hydrogen passes through the catalyst, it is stripped of its electrons, which are forced to move along an external circuit, producing an electrical current.
- This current is used by the electric motor to power the vehicle, with the only byproduct being water vapour.
Issues with H-Fuel cells
- A big barrier to the adoption of hydrogen fuel cell vehicles has been a lack of fuelling station infrastructure.
- There are fewer than 500 operational hydrogen stations in the world today, mostly in Europe, followed by Japan and South Korea.
- Safety is seen as a concern. Hydrogen is pressurized and stored in a cryogenic tank, from there it is fed to a lower-pressure cell and put through an electrochemical reaction to generate electricity.
- Scaling up the technology and achieving critical mass remains the big challenge.
- More vehicles on the road and more supporting infrastructure can lower costs. India’s proposed mission is seen as a step in that direction.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: PLI scheme and various sectors
Mains level: Make in India promotions
The Union Cabinet has approved the production-linked incentive scheme for the telecom sector with an outlay of ₹12,195 crores over five years.
Why such a scheme?
- The scheme aims to make India a global hub for manufacturing telecom equipment.
- The sector is expected to lead to an incremental production of about ₹2.4 lakh crore, with exports of about ₹2 lakh crore over five years and bring in investments of more than ₹3,000 crores.
PLI Scheme
- The PLI scheme aims to boost domestic manufacturing and cut down on imports by providing cash incentives on incremental sales from products manufactured in the country.
- Besides inviting foreign companies to set shop in India, the scheme aims to encourage local companies to set up or expand, existing manufacturing units.
UPSC can directly as the sectors included in the PLI scheme. Earlier it was only meant for Electronics manufacturing (particularly mobile phones).
Benefits for MSMEs
- For inclusion of MSMEs in the scheme, the minimum investment threshold has been kept at ₹10 crores, while for others it is ₹100 crore.
- For MSMEs, a 1% higher incentive is also proposed in the first three years.
Employment generation
- The scheme was also likely to generate 40,000 direct and indirect employment opportunities and generate tax revenue of ₹17,000 crores from telecom equipment manufacturing.
Which equipments?
- The telecom manufacturing would include core transmission equipment, 4G/5G Radio Access Network and wireless equipment, access and Customer Premises Equipment (CPE), IoT access devices, other wireless equipment.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Dealing with vaccine hesitancy
Reluctance to take the vaccine has several implications. The misinformation around the vaccines needs to be fought through several measures.
Understanding vaccine hesitancy
- According to the World Health Organization, vaccine hesitancy is defined as a reluctance or refusal to vaccinate despite the availability of vaccine services.
- To date, two vaccines have been approved for inoculation in India: Pune-based Serum Institute’s Covishield and Hyderabad-based Bharat Biotech’s Covaxin.
- An adequate supply of vaccines is in place at least for the first phase, but the trickier part is to persuade the population for vaccination.
- Like Western nations, vaccine hesitancy has been a cause of concern in the past in India as well.
- Social media has seen a rising number of self-proclaimed experts who have been making unsubstantiated claims.
- The debates around hesitancy for COVID-19 vaccines include concerns over safety, efficacy, and side effects due to the record-breaking timelines of the vaccines, competition among several companies, misinformation, and religious taboos.
Need to adopt libertarian paternalism
- It is suggested that we adopt the idea of libertarian paternalism, which says it is possible and legitimate to steer people’s behaviour towards vaccination while still respecting their freedom of choice.
- Vaccine hesitancy has a different manifestation in India, unlike in the West.
- According to the World Economic Forum/Ipsos global survey, COVID-19 vaccination intent in India, at 87%, exceeds the global 15-country average of 73%.
Way forward
- Instead of anti-vaxxers, the target audience must be the swing population i.e., people who are sceptical but can be persuaded through scientific facts and proper communication.
- The second measure is to pause before you share any ‘news’ from social media.
- It becomes crucial to inculcate the habit of inquisitive temper to fact-check any news related to COVID-19 vaccines.
- The third measure is to use the celebrity effect — the ability of prominent personalities to influence others to take vaccines.
- Celebrities can add glamour and an element of credibility to mass vaccinations both on the ground and on social media.
Consider the question “What is vaccine hesitancy? Suggest the measures to deal with it”
Conclusion
The infodemic around vaccines can be tackled only by actively debunking myths, misinformation and fake news on COVID-19 vaccines.
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Paper 3-
The article argues for consideration of the regional variation in the conditions of farmers and their concerns in the context of recently introduced farm laws.
Argument against diversification
- In Punjab, Haryana and western UP, minimum support price (MSP)-based agriculture has a logic.
- Not all regions must diversify.
- The region has great alluvial soil, good irrigation and almost a century-long tradition of the application of science to agriculture.
- In south Punjab, with less irrigation, and parts of Haryana not covered by the Indira Gandhi Canal, some diversification to pulses, cotton etc. could work but the solid specialisation in this region remains.
Issue of middlemen
- Arhtiyas (middlemen) are important in Indian agricultural markets.
- They are a part of the supply chain in north-west India.
- Here they are not like the middlemen elsewhere.
- They function simply as agents of the procurement agencies.
- This was done by the past government to reduce overhead costs of procurement.
Steps need to be taken
- The e-markets, forwards and farmer-managed companies are not the dominant mode of rural organisations.
- Agriculture is the one good sector in otherwise dismal year.
- So, we need to strengthen it, not feed off on its glory, even outside north-west India.
- We have the largest spread of agricultural markets in the world according to spatial maps.
- But they are not APMCs.
- With weak markets (outside of grains) and without first-stage processing and other infrastructure, the farmer knows he is at the mercy of the trader and comes out on the streets when that is not understood.
Evolution of MSP
- The MSP played a crucial role in the days of compulsory procurement and zonal restrictions.
- Each crop had its own report then.
- Later separate reports were replaced by two reports, one for kharif and another one for rabi, apart from one for sugarcane (an annual crop).
- The 1982 rabi report stated that relative prices and, in that context, MSP had the role of an intervention mechanism when markets failed, outside the compulsory procurement area.
- Later, the concept of transport costs and managerial costs became important.
Way forward
- The Essential Commodities Act should be ditched.
- Good laws are good because progress starts with them, but not all laws are good everywhere.
- A modified version of the laws with a roadmap can be on the agenda — not everywhere, but most places outside the lands of the five rivers.
Conclusion
The amended laws should be considered in the context of regional variation in the country and necessary changes should be made to address the concerns of the farmers.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Finance Commission
Mains level: Paper 2- Recommendations of Fifteenth Finance Commission
The article analyses the various recommendations of the Fifteenth Finance Commission and their impact.
Unique challenges
- Many new and unique demands were placed on the 15th Finance Commission.
- The major challenge being addressing the issue of the 2011 population census evoking a sharp response from the southern states.
- Other issues include the non-lapsable defence fund and the use of certain parameters for performance incentives.
- The Commission was also required to perform the task of assessing and projecting the fiscal roadmap for the Union and state amid an uncertain domestic environment due to shortfall in the GST collection, further accentuated in the year 2020 by the global pandemic.
Key recommendations
The Commission, in its final report, recommended vertical devolution at 41 per cent, adjusting 1 per cent for the erstwhile state of Jammu and Kashmir.
1) Horizontal distribution
- For horizontal distribution, the commission has tried to harmonise the principles of expenditure needs, equity and performance.
- This is achieved by the introduction of efficiency criteria of tax and fiscal efforts and by assigning 12.5 per cent weight to demographic performance.
- Consideration of demographic performance will help in resolving the demographic debate and incentivising states in moving towards the replacement rate of population growth.
2) Principles governing grant-in-aid
- Grants are important as they are more directly targeted and equalise the standards of basic social services to some extent.
- The Commission has recommended a total grant of Rs 10,33,062 crore during 2021-26.
- Grant is broadly characterised into: (a) revenue deficit grants (b) grants for local governments (c) grants for disaster management (d) sector-specific grants and (e) state-specific grants.
- Many of these grants are linked with performance-based criteria, thereby promoting principles of transparency, accountability, and leading to better monitoring of expenditures.
- However, the Commission was asked to examine whether revenue deficit grants should be provided at all to the states.
- Some states stressed that revenue deficit grants have serious disincentives for tax efforts and prudence in expenditure and, hence, these should be discontinued.
- Fiscally stressed states of Kerala, West Bengal and Punjab are regular recipients of these grants due to high debt legacy.
3) Conditional grants to local bodies
- This Commission’s grant for local government is different from that of its predecessors for the set of entry-level conditions:
- (a) Constitution of State Finance Commissions.
- (b) Timely auditing and online availability of accounts for rural local bodies coupled with
- (c) Notifying consistent growth rate for property tax revenue for urban local bodies.
- Secondly, the recommendations are in alignment with the national programmes of Swachch Bharat Mission and Jal Jeewan Mission.
4) Incubation of new cities and urban grants
- It is for the first time that a Finance Commission has recommended Rs 8,000 crore to states for incubation of new cities, granting Rs 1,000 crore each for eight new cities.
- The focus of urban grants for million-plus cities is improvement in air quality and meeting the service level benchmark of solid waste management and sanitation.
5) Grants for health and setting up of disaster mitigation fund
- The commission recommended channelising the health grant of Rs 70,051 crore through local bodies, addressing the gaps in primary health infrastructure.
- The Commission’s recommendation for setting up the state and national level Disaster Risk Mitigation Fund (SDRMF), in line with the provisions of the Disaster Management Act, is both well-timed and necessary.
- For the first time, the Finance Commission has introduced a 10-25 per cent graded cost-sharing basis by the states for the NDRF and NDMF which has not been appreciated by the states.
6) Non-lapsable fund for defence
- The Commission has recommended setting up of a dedicated non-lapsable fund, the Modernisation Fund for Defence and Internal Security (MFDIS).
- Objective of the fund is to bridge the gap between projected budgetary requirements and budget allocation for defence and internal security and to provide greater predictability for enabling critical defence capital expenditure.
- The fund will have four specific sources: (a) Transfers from the Consolidated Fund of India, (b) disinvestment proceeds of DPSEs, (c) proceeds from the monetisation of surplus defence land and (d) proceeds of receipts from defence land likely to be transferred to state governments and for public projects in the future.
- The total indicative size of the proposed MFDIS over the period 2021-26 is Rs 2,38,354 crore.
- The Union government has accepted this recommendation in principle.
Consider the question “Examine the various principles on which the Fifteenth Finance Commission based the horizontal distribution of states share.”
Conclusion
The report starts with the famous quote of Mahatma Gandhi: “The future depends on what we do in the present”. It would be interesting to see the impact of these overarching and revolutionary recommendations in the times ahead.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: New York Convention
Mains level: Not Much
Cairn Energy has filed a case in a U.S. district court to enforce a $1.2 billion arbitration award it won in a tax dispute against India. Cairn aims to enforce the award under international arbitration rules, commonly called the New York Convention.
New York Convention
- The Convention on the Recognition and Enforcement of Foreign Arbitral Awards is commonly known as the New York Convention.
- It was adopted by a UN diplomatic conference on 10 June 1958 and entered into force on 7 June 1959.
- It requires courts of contracting states to give effect to private agreements to arbitrate and to recognize and enforce arbitration awards made in other contracting states.
- Widely considered the foundational instrument for international arbitration, it applies to arbitrations that are not considered domestic awards in the state where recognition and enforcement are sought.
What was the case?
- The Indian government has lost an international arbitration case to energy giant Cairn Plc over the retrospective levy of taxes and has been asked to pay damages worth $1.2 billion to the UK firm.
- The Permanent Court of Arbitration at The Hague has maintained that the Cairn tax issue is not a tax dispute but a tax-related investment dispute and, hence, it falls under its jurisdiction.
- India’s demand in past taxes, it said, was in breach of fair treatment under the UK-India Bilateral Investment Treaty.
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From UPSC perspective, the following things are important :
Prelims level: MBT Arjun
Mains level: India's artillery capability
PM has recently handed over the indigenously developed Arjun Main Battle Tank (MK-1A) to the Indian Army.
Q.Discuss India’s preparedness for high-altitude warfare.
Arjun Main Battle Tank
- The Arjun Main Battle Tank project was initiated by DRDO in 1972 with the Combat Vehicles Research and Development Establishment (CVRDE) as its lead laboratory.
- The objective was to create a “state-of-the-art tank with superior firepower, high mobility, and excellent protection”.
- During the development, the CVRDE achieved breakthroughs in the engine, transmission, hydro-pneumatic suspension, hull and turret as well as the gun control system.
- Mass production began in 1996 at the Indian Ordnance Factory’s production facility in Avadi, Tamil Nadu.
Features of the Arjun tank
- The Arjun tanks stand out for their ‘Fin Stabilised Armour Piercing Discarding Sabot (FSAPDS)’ ammunition and 120-mm calibre rifled gun.
- It also has a computer-controlled integrated fire control system with a stabilised sighting that works in all lighting conditions.
- The secondary weapons include a co-axial 7.62-mm machine gun for anti-personnel and a 12.7-mm machine gun for anti-aircraft and ground targets.
How is Mk-1A different?
- The Mk-1A version has 14 major upgrades on the earlier version.
- It is also supposed to have missile firing capability as per the design, but this feature will be added later as final testing of the capability is still on.
- However, the biggest achievement with the latest version is 54.3 per cent indigenous content against the 41 per cent in the earlier model.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Mahabahu-Brahmaputra
Mains level: Infrastructure in NE
PM will launch the ‘Mahabahu-Brahmaputra’, lay the foundation stone of Dhubri Phulbari Bridge and perform Bhumi Pujan for construction of Majuli Bridge Assam.
Click here to read all North-East related news.
Mahabahu-Brahmaputra
- The program is aimed at providing seamless connectivity to the Eastern parts of India and includes various development activities for the people living around River Brahmaputra and River Barak.
- It will consist of the Ro-Pax vessel operations between Neamati-Majuli Island, North Guwahati-South Guwahati and Dhubri-Hatsingimari.
- The Ro-Pax services will help in reducing the travel time by providing connectivity between banks and thus reducing the distance to be travelled by road.
- PANI (Portal for Asset and Navigation Information) will act as a one-stop solution for providing information about river navigation and infrastructure.
Dhubri Phulbari Bridge
- PMwill lay the foundation stone for the four-lane bridge over the Brahmaputra between Dhubri (on North Bank) and Phulbari (on South Bank).
- The proposed Bridge will be located on NH-127B, originating from Srirampur on NH-27 (East-West Corridor), and terminating at Nongstoin on NH-106 in the State of Meghalaya.
- It will connect Dhubri in Assam to Phulbari, Tura, Rongram and Rongjeng in Meghalaya.
- It will reduce the distance of 205 Km to be travelled by Road to 19 Km, which is the total length of the bridge.
Majuli Bridge
- PM will perform Bhumi Pujan for the two-lane Bridge on the Brahmaputra between Majuli (North Bank) and Jorhat (South Bank).
- The bridge will be located on NH-715K and will connect Neematighat (on Jorhat side) and Kamalabari (on Majuli side).
- The Construction of the bridge has been a long demand of the people of Majuli who for generations have been dependent on the ferry services to connect with the mainland of Assam.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ISDS
Mains level: Paper 3- Termination of BITs and its implications for India
The article examine the termination of agreement for the development of East Container Terminal by Sri Lanka in the context of unilateral termination of bilateral investment treaties by India.
Context
- Recently, Sri Lanka terminated 2019 agreement with India and Japan that aimed to jointly develop the strategic East Container Terminal (ECT) at the Colombo port.
- Apart from analysing the diplomatic fallout of this problematic decision for India-Sri Lanka ties, the issue also needs to be looked at through the prism of the India-Sri Lanka bilateral investment treaty (BIT).
India-Sri Lanka BIT and its termination
- In 1997, India and Sri Lanka signed a BIT to promote and protect foreign investment in each other’s territories.
- It empowers individual foreign investors to directly sue the host state before an international tribunal if the investor believes that the host state has breached its treaty obligations.
- This is known as investor-state dispute settlement (ISDS).
- Article 3(2) of this treaty provides that investments and returns of investors of each country shall, at all times, be accorded fair and equitable treatment (FET) in the other country’s territory.
- The normative content of the FET provision has been fleshed out by scores of ISDS tribunals in the last two decades.
- The tribunals have persistently held that an important component of the FET provision is that the host state should protect the legitimate expectations of foreign investors.
- In a case known as International Thunderbird Gaming Corporation v Mexico, it was held that the concept of legitimate expectations relates to a situation where the host state’s conduct creates reasonable and justifiable expectations on the part of an investor (or investment) to act in reliance on said conduct, such that a failure to honour those expectations could cause the investor (or investment) to suffer damages.
- Sri Lanka, by signing the agreement to jointly develop the ECT at the Colombo port, created such expectations on the part of Indian investors.
- However, the twist in the tale is that India unilaterally terminated the India-Sri Lanka BIT on March 22, 2017.
- This termination was part of the mass repudiation of BITs that India undertook in 2017 as a result of several ISDS claims being brought against it.
- In cases of such unilateral termination, survival clauses in BITs assume significance because they ensure that foreign investment continues to receive protection during the survival period.
- But, in the case of the investment in developing the ECT at the Colombo port, this survival clause will be inconsequential, since the agreement was signed in 2019, i.e., after India unilaterally terminated the BIT.
Important lessons
- As a consequence of the onslaught of ISDS claims in the last few years, India has developed a protectionist approach towards BITs.
- However, an important attribute that perhaps has not received much attention is that BITs are reciprocal.
- BITs do not empower merely foreign investors to sue India, but also authorise Indian investors to make use of BITs to safeguard their investment in turbulent foreign markets.
- Accordingly, given India’s emergence as an exporter, and not just an importer of capital, the government should revisit its stand on BITs.
Consider the question “Examine the implications of unilateral termination of bilateral investment treaties(BITs) by India.”
Conlcusion
India needs to adopt a balanced approach towards BITs with an effective ISDS provision. This will facilitate Indian investors in defending their investment under international law should a country, like Sri Lanka, renege on an agreement.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Vivad se Vishwas scheme
Mains level: Paper 3- Measures adopted for increasing transparency and compliance in taxation.
Article explains the measures adopted in the Budget 2021-22 for increasing compliance and transparency.
Maintaining the status quo
- COVID-19 has upset fiscal maths around the world.
- It is in this context that the Union budget assumed significance this year.
- The expectations of tax breaks were rife on the presumption that this could boost economic activity.
- Whereas others called for a tax on stock market gains.
- Unyielding to such requests, the budget was based on a pragmatic approach to maintain the status quo.
Why higher tax rates would not help much
- Nearly 60 per cent of corporate taxes are paid by the 0.06 per cent of the companies belonging to the top income bracket.
- On the other hand, among individual taxpayers, only 0.17 per cent report taxable incomes above Rs 25 lakh.
- Therefore, higher taxes would either yield little revenue or adversely affect economic activity.
Need to shift focus to compliance and greater transparency
- For increasing compliance and transparency, significant proposals have been made:
- 1) Limited the window for reopening the case to 3 years.
- 2) The introduction of the requirement for an assessment officer to provide facts on the basis of which he/she re-assesses.
- 3) The faceless Income Tax Appellate Tribunal (ITAT).
- By making the process of assessment faceless the major causes for litigation are addressed.
- The limited window of re-opening cases for small taxpayers and due consideration of risk management strategy and the CAG’s observations in carrying out such assessments marks an improvement in the process.
Dispute resolution mechanism with better interface
- The Vivad se Vishwas scheme was launched in 2020 to address piling litigation and it is reported that collections under this scheme have been Rs 85,000 crore for 1,10,000 taxpayers.
- This is a small fraction as compared to the Rs 4.34 lakh crore in corporate taxes and Rs 4.49 lakh crore in income taxes that are locked in dispute.
- Therefore, a dispute resolution mechanism that allows for better interface between the taxpayer and the department may, in fact, be relatively beneficial.
Consider the question “Examine the reasons for small tax base in India. Examine the measures adopted in the Budget 2021-22 for increasing compliance and transparency.”
Conclusion
The budget estimates suggest that corporate tax and income tax collections are expected to increase by 22 per cent. With an expected growth rate of 14 per cent in nominal GDP, the remaining gains in taxes are presumably expected from higher compliance or realisation of taxes due. Whether this will pan out remains to be seen.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- How governments are dealing with the dominance of social media
The article discusses the issue of growing influence of social media companies and response of the governments.
Issues with the growing influence of social media companies
- In the US the last two general elections in 2016 and 2020 have seen strong charges of political manipulation by social media companies.
- But influence of social media companies is not limited ot elections, it envelops a range of domestic and international issues.
- These issuesincludes: the concentration of economic power, individual rights against the state as well as the corporation, disinformation, the rise of digital geopolitics, and global digital governance.
How governments are responding
- Democratic forces need to consult each other and collaborate in developing new norms for managing the digital world.
- In the US, both the left and right are demanding that digital behemoths like Amazon, Google, Facebook and Twitter are brought under greater control if not broken up.
- Last December, the European Commission proposed new rules to promote competition and fairness in digital markets.
- The EU is likely to approve a Digital Markets Act next year.
- Australia has decreed that Google must work out an arrangement with Australian newspapers to pay for the use of their content.
- The current digital giants, however, are not easily amenable to political attack.
- They are bigger than the biggest we have known.
3 Issues with business practices of social media companies
- Governments are now questioning the sharp business practices of the tech giants especially labour rights, taxes and politics.
- While the tech giants have created a lot of new wealth, some of them have sharply squeezed the labour.
- In California, trade unions are battling against the success of Uber and Lyft to turn employees into “contract workers” to deny them multiple benefits.
- Digital giants have been aggressive tax evaders.
- On the political front recently,Twitter and Facebook shut down President Donald Trump’s accounts.
- European leaders raised important questions about social media’s actions against Trump.
Way forward
- Answer to deal with social media on political front lies in laying down a clear set of obligations and responsibilities for the digital giants.
- This move will help in building digital sovereignty.
- The world’s democracies must get together to discuss global digital governance.
Consider the question “What are the challenges posed by the growing influence of social media companies in the democratic countries?”
Conclusion
As governments push back against big tech, a new challenge presents itself — reining in the growing power of the state in the digital age. The answer lies in democracies modernising their laws to protect freedoms in the era of technological transformation.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Geospatial data
Mains level: Benefits of the liberalized scheme
In sweeping changes to the country’s mapping policy, the government has announced liberalisation of norms governing the acquisition and production of geospatial data.
Q.What do you mean by Geo-Spatial Data? What are its economic and strategic significance?
What is the news?
- The Ministry of Science and Technology has released new guidelines for the Geo-spatial sector in India.
- It deregulated the existing protocol and liberalizes the sector to a more competitive field.
What is a Geo-Spatial Data?
- Geospatial data is data about objects, events, or phenomena that have a location on the surface of the earth.
- The location may be static in the short-term, like the location of a road, an earthquake event, malnutrition among children, or dynamic like a moving vehicle or pedestrian, the spread of an infectious disease.
- Geospatial data combines location information, attribute information, and often also temporal information or the time at which the location and attributes exist.
- Geo-spatial data usually involves information of public interest such as roads, localities, rail lines, water bodies, and public amenities.
- The past decade has seen an increase in the use of geospatial data in daily life with various apps such as food delivery apps like Swiggy or Zomato, e-commerce like Amazon or even weather apps.
What is the present policy on geospatial data?
- There are strict restrictions on the collection, storage, use, sale, dissemination of geo-spatial data and mapping under the current regime.
- The policy had not been renewed in decades and has been driven by internal as well as external security concerns.
- Private companies need to navigate a system of permissions from different departments of the government as well as the defence and Home Ministries, to be able to collect, create or disseminate geospatial data.
Why has the government deregulated geospatial data?
- This system of acquiring licenses or permission, and the red tape involved, can take months, delaying projects, especially those that are in mission mode – for both Indian companies as well as government agencies.
- The deregulation eliminates the requirement of permissions as well as scrutiny, even for security concerns.
- Indian companies now can self-attest, conforming to government guidelines without actually having to be monitored by a government agency- these guidelines, therefore, place a great deal of trust in Indian entities.
- There is also a huge lack of data in the country which impedes planning for infrastructure, development and businesses which are data-based.
- The mapping of the entire country that too with high accuracy, by the Indian government alone could take decades.
- The government, therefore, felt an urgent need to incentivise the geospatial sector for Indian companies and increased investment from private players in the sector.
- Large amounts of geospatial data are also available on global platforms, which makes the regulation of data that is freely available in other countries, untenable.
What next?
- While for decades, geospatial data has been a priority for strategic reasons and for internal and external security concerns.
- This priority has seen a shift in the past 15 years – geospatial data has now become imperative for the government in planning for infrastructure, development, social development as well as the economy.
- More and more sectors such as agriculture, environment protection, power, water, transportation, communication, health (tracking of diseases, patients, hospitals etc) are relying heavily on this data.
- There has also been a global push for open access to geospatial as it affects the lives of ordinary citizens.
Expected impacts
- By liberalizing the system, the government will ensure more players in the field, the competitiveness of Indian companies in the global market, and more accurate data available to both the government to formulate plans and administer, but also for individual Indians.
- Startups and businesses can now also use this data in setting up their concerns, especially in the sector of e-commerce or geospatial based apps – which in turn will increase employment in these sectors.
- Indian companies will be able to develop indigenous apps, for example, an Indian version of Google maps.
- There is also likely to be an increase in public-private partnerships with the opening of this sector with data collection companies working with the Indian government on various sectoral projects.
- The government also expects an increase in investment in the geospatial sector by companies, and also an increase in export of data to foreign companies and countries, which in turn will boost the economy.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Impact of fuel prices on inflation
Mains level: Global oil price dynamics
Diesel and petrol prices have hit record highs across the country.
Govt explanation
- The government reasons that global crude oil prices have risen by more than 50 per cent to over $63.3 per barrel since October, forcing oil retailers to increase pump prices.
- That, however, is only partly true.
- Indian consumers are already paying much higher than what they were paying last January, even though crude prices are yet to reach levels of early last year.
Note: Petrol and diesel do not come under the purview of goods and services tax (GST).
Fuel price dynamics in India
- Retail petrol and diesel prices are in theory decontrolled — or linked to global crude oil prices.
- It means that if crude prices fall retails prices should come down too, and vice versa.
- But this does not happen in practice, largely because oil price decontrol is a one-way street in India.
- When global crude oil prices fall and prices slide, the government slaps fresh taxes and levies to ensure that it rakes in extra revenues.
- The consumer should have ideally benefited by way of lower pump prices, is forced to either shell out what she’s already paying or spend even more for every litre of fuel.
- The main beneficiary in this subversion of price decontrol is the government.
Why crude oil prices are rising now?
- Prices collapsed in April 2020 after the pandemic spread around the world, and demand fell away.
- But as economies have reduced travel restrictions and factory output has picked up, global demand has improved, and prices have been recovering.
- The controlled production of crude amid rising demand has been another key factor in boosting oil prices, with Saudi Arabia voluntarily cutting its daily output.
What is the impact of taxes on retail prices of auto fuels?
- The central government hiked the central excise duty on petrol to Rs 32.98 per litre during the course of last year from Rs 19.98 per litre at the beginning of 2020.
- It increased the excise duty on diesel to Rs 31.83 per litre from Rs 15.83 over the same period to boost revenues as economic activity fell due to the pandemic.
- A number of states have also hiked sales tax on petrol and diesel to shore up their revenues.
How much tax do we pay now?
Currently, state and central taxes amount to around 180 per cent of the base price of petrol and 141 per cent of the base price of diesel in Delhi.
How will these hikes impact inflation?
- Experts note that the impact of rising fuel inflation has been counterbalanced by declining food inflation, but that consumers with greater expenditure on travel are feeling the pinch of higher prices.
- Rising fuel inflation may pinch consumers who have to travel further for work and have access to affordable cereals etc.
- The urban population would be more impacted by rising fuel prices than the rural population — however, a weak monsoon may lead to rural India being hit as farmers are forced to rely more on diesel-powered irrigation.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Dickinsonia, Bhimbetka
Mains level: Geological time scale
Bhimbetka, which has yielded a fossil of Dickinsonia dating back about 550 million years, is the first time the particular fossilized organism has been recorded in India.
Why does this fossil matter?
- It dates back to an era regarded as the precursor to the explosion of life on earth during the Cambrian period.
- Thus it puts India firmly on the map for studies of the Ediacaran era along with Australia and Russia.
Here’s what makes the discovery a global milestone:
(a) Ediacaran Period
- The finding gives lead about the earliest living species during a period of the earth’s history known as the Ediacaran, named after the Ediacara Hills in South Australia.
- This is the period in Earth’s history when Dickinsonia and several multicellular organisms existed.
- It was approximately 635 million years ago (Ma) and 541 Ma, with the living creatures of the era, called vendobionts.
Now take this opportunity to revise the Geological time scale from your NCERTs. Try differentiating between different era, periods and epoch.
(b) India’s Proximity to Australia
- Studies of the rock characteristics in and around Bhimbetka show that they share several characteristics with rocks in Australia.
- Dickinsonia fossils from India were found by the scientists to be identical to the Rawnsley Quartzite in South Australia.
- This provides evidence of their age and the proximity of the two landmasses in Gondwanaland in that era.
- The evidence however did not support reconstructions adjusted for the polar wander phenomenon [which involves motion of continents over geologic time and its impacts].
Use of Zircon dating
- The age of fossil rock is determined using Zircon isotopes.
- Zircon dating of the youngest Maihar sandstone in Madhya Pradesh puts its age at 548 Ma.
- The lower Bhander group in the Son and Chambal valleys yielded an isotope-derived age for limestones ranging from 978 Ma to 1073 Ma, situating it in the older Tonian period.
- The Ediacaran period was the precursor to the Cambrian (about 541 Ma to 485.4 Ma) when the earth witnessed an explosion of life forms and much of which makes up modern animal life today.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Sandes
Mains level: Secured instant messaging
The National Informatics Centre (NIC) has launched an instant messaging platform called Sandes on the lines of WhatsApp. Open initially only to government officers, it has now been released for the common public as well.
Features of Sandes Platform
- The instant messaging app, called Sandes, has an interface similar to many other apps currently available in the market.
- Like WhatsApp, the new NIC platform can be used for all kinds of communications by anyone with a mobile number or email id.
- Although there is no option to transfer the chat history between two platforms, the chats on government instant messaging systems or GIMS can be backed up to a users’ email.
- It also offers features such as group making, broadcast message, message forwarding and emojis.
- Further, as an additional safety feature, it allows a user to mark a message as confidential, which will allow the recipient to be made aware the message should not be shared with others.
Why need such instant messaging platform?
- Following the nationwide lockdown, the government felt the need to build a platform to ensure secure communication between its employees as they worked from home.
- The idea for a secure communication network dedicated exclusively to government employees has been in the works for the past four years.
- In August 2020, the NIC released the first version of the app, which said that the app could be used by both central and state government officials for intra and inter-organisation communication.
- The app was initially launched for Android users and then the service was extended to iOS users.
Limitations of the app
- The limitation, however, is that the app does not allow the user to change their email id or registered phone number.
- The user will have to re-register as a new user in case they wish to change their registered email id or phone number on the app.
Do you remember?
[Burning Issue] WhatsApp Snooping
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