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Capital Markets: Challenges and Developments

Infrastructure Investment Trusts (InvITs)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: InvITs

Mains level: Not Much

The National Highway Authority of India’s first infrastructure investment trust has raised more than Rs 5,000 crore, informed the Ministry of Road Transport and Highways of India.

What are InvITs?

  • InvITs are like a mutual fund, which enables direct investment of small amounts of money from possible individual/institutional investors in infrastructure to earn a small portion of the income as return.
  • They work like mutual funds or real estate investment trusts (REITs) in features.
  • They can be treated as the modified version of REITs designed to suit the specific circumstances of the infrastructure sector.

How are they notified in India?

  • SEBI notified the Sebi (Infrastructure Investment Trusts) Regulations, 2014 on September 26, 2014, providing for registration and regulation of InvITs in India.
  • The objective of InvITs is to facilitate investment in the infrastructure sector.

Their structure

  • InvITS are like mutual funds in structure. InvITs can be established as a trust and registered with Sebi.
  • An InvIT consists of four elements:
  1. Trustee: He inspects the performance of an InvIT is certified by Sebi and he cannot be an associate of the sponsor or manager.
  2. Sponsor(s): They are people who promote and refer to any organisation or a corporate entity with a capital of Rs 100 crore, which establishes the InvIT and is designated as such at the time of the application made to SEBI, and in case of PPP projects, base developer.
  3. Investment Manager: It is an entity or limited liability partnership (LLP) or organisation that supervises assets and investments of the InvIT and guarantees activities of the InvIT.
  4. Project Manager: It is the person who acts as the project manager and whose duty is to attain the execution of the project and in case of PPP projects.

 

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Nuclear Energy

Iran has enriched over 210 kg of Uranium to 20%

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Uranium enrichment

Mains level: Not Much

Iran’s atomic agency has said that its stockpile of 20% enriched uranium has reached over 210 kilograms, the latest defiant move ahead of upcoming nuclear talks with the West.

What is Uranium Enrichment?

  • It is a process that is necessary to create an effective nuclear fuel out of mined uranium.
  • It involves increasing the percentage of uranium-235 which undergoes fission with thermal neutrons.
  • Nuclear fuel is mined from naturally occurring uranium ore deposits and then isolated through chemical reactions and separation processes.
  • These chemical processes used to separate the uranium from the ore are not to be confused with the physical and chemical processes used to enrich the uranium.

Why is enrichment carried out?

  • Uranium found in nature consists largely of two isotopes, U-235 and U-238.
  • Natural uranium contains 0.7% of the U-235 isotope.
  • The remaining 99.3% is mostly the U-238 isotope which does not contribute directly to the fission process (though it does so indirectly by the formation of fissile isotopes of plutonium).
  • The production of energy in nuclear reactors is from the ‘fission’ or splitting of the U-235 atoms since it is the main fissile isotope of uranium.
  • Naturally occurring uranium does not have a high enough concentration of Uranium-235 at only about 0.72% with the remainder being Uranium-238.

 

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Judicial Appointments Conundrum Post-NJAC Verdict

All India Judicial Service (AIJS): The centralised recruitment debate

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Articles 233 and 234

Mains level: All India Judicial Services

The central government is preparing to give a fresh push to the establishment of an All India Judicial Service (AIJS) on the lines of the central civil services.

All India Judicial Service (AIJS)

  • The AIJS is a reform push to centralize the recruitment of judges.
  • It would work at the level of additional district judges and district judges for all states.
  • In the same way that the UPSC conducts a central recruitment process and assigns successful candidates to cadres, judges of the lower judiciary are proposed to be recruited centrally and assigned to states.
  • This idea has been debated in legal circles for decades, and remains contentious.

How are district judges currently recruited?

  • Articles 233 and 234 of the Constitution of India deal with the appointment of district judges, and place it in the domain of the states.
  • The selection process is conducted by the State Public Service Commissions and the concerned High Court since High Courts exercise jurisdiction over the subordinate judiciary in the state.
  • Panels of High Court judges interview candidates after the exam and select them for an appointment.
  • All judges of the lower judiciary up to the level of district judge are selected through the Provincial Civil Services (Judicial) exam.

Why has the AIJS been proposed?

The idea was to ensure:

  • Efficient subordinate judiciary
  • Address structural issues such as varying pay and remuneration across states
  • Fill vacancies faster
  • Ensure standard training across states

Beginning of the debate

  • The idea of a centralized judicial service was first proposed in the Law Commission 1958 ‘Report on Reforms on Judicial Administration’.
  • It was proposed again in the Law Commission Report of 1978, which discussed delays and arrears of cases in the lower courts.
  • In 2006, the Parliamentary Standing Committee backed the idea of a pan-Indian judicial service, and also prepared a draft Bill.

What is the judiciary’s view on the AIJS?

  • 1992: the Supreme Court directed the Centre to set up an AIJS in All India Judges’ Assn. vs Union of India
  • 1993: In review of the judgment, the court left the Centre at liberty to take the initiative on the issue.
  • 2017: The Supreme Court took suo motu cognizance of the issue of appointment of district judges, and mooted a “Central Selection Mechanism”.

What is the opposition to the AIJS?

  • Blow to federalism: AJIS is seen as an affront to federalism and an encroachment on the powers of states granted by the Constitution.
  • Language of Business: Language and representation, for example, are key concerns highlighted by states. Judicial business is conducted in regional languages, whi ch could be affected by central recruitment.
  • Quotas: Also, reservations based on caste, and even for rural candidates or linguistic minorities in the state, could be diluted in a central test, it has been argued.
  • Separation of power: The opposition is also based on the constitutional concept of the separation of powers.
  • Not a complete remedy: Additionally, legal experts have argued that the creation of AIJS will not address the structural issues plaguing the lower judiciary.

Why is the government seeking to revive the idea of AIJS?

  • The government has targeted the reform of the lower judiciary in its effort to improve India’s Ease of Doing Business ranking.
  • It will act as efficient dispute resolution is one of the key indices in determining the rank.
  • AIJS is a step in the direction of ensuring an efficient lower judiciary.

Centre’s argument for AJIS

  • The government has cited IAS officers’ examples.
  • It has argued that if a central mechanism can work for administrative services — IAS officers learn the language required for their cadre — it can work for judicial services too.

 

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Oil and Gas Sector – HELP, Open Acreage Policy, etc.

Centre cuts Excise Duty on Petrol and Diesel

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Excise duty

Mains level: Petroleum pricing in India

The Government has finally reduced fuel prices by slashing excise duties on petrol and diesel by ₹5 and ₹10 per litre respectively.

What is Excise Duty?

  • Excise duty is a form of tax imposed on goods for their production, licensing and sale.
  • It is the opposite of Customs duty in sense that it applies to goods manufactured domestically in the country, while Customs is levied on those coming from outside of the country.
  • At the central level, excise duty earlier used to be levied as Central Excise Duty, Additional Excise Duty, etc.
  • Excise duty was levied on manufactured goods and levied at the time of removal of goods, while GST is levied on the supply of goods and services.

Purview of excise duty

  • The GST introduction in July 2017 subsumed many types of excise duty.
  • Today, excise duty applies only on petroleum and liquor.
  • Alcohol does not come under the purview of GST as exclusion mandated by constitutional provision.
  • States levy taxes on alcohol according to the same practice as was prevalent before the rollout of GST.
  • After GST was introduced, excise duty was replaced by central GST because excise was levied by the central government.
  • The revenue generated from CGST goes to the central government.

Types of excise duty in India

Before GST, there were three kinds of excise duties in India.

(1) Basic Excise Duty

  • Basic excise duty is also known as the Central Value Added Tax (CENVAT).
  • This category of excise duty was levied on goods that were classified under the first schedule of the Central Excise Tariff Act, 1985.
  • This duty applied on all goods except salt.

(2) Additional Excise Duty

  • Additional excise duty was levied on goods of high importance, under the Additional Excise under Additional Duties of Excise (Goods of Special Importance) Act, 1957.
  • This duty was levied on some special category of goods.

(3) Special Excise Duty

  • This type of excise duty was levied on special goods classified under the Second Schedule to the Central Excise Tariff Act, 1985.
  • Presently the central excise duty comprises of a Basic Excise Duty, Special Additional Excise Duty and Additional Excise Duty (Road and Infrastructure Cess) on auto fuels.

Present taxation of Fuels

  • Currently, taxes on petroleum products are levied by both the Centre and the states.
  • While the Centre levies excise duty, states levy value-added tax (VAT).
  • For instance, VAT on petroleum products is as high as 40% in Maharashtra, contributing over ₹25,000 crores annually.
  • By being able to levy VAT on these products, the state governments have control over their revenues.
  • When a national GST subsumed central taxes such as excise duty and state levies like VAT on July 1, 2017, five petroleum goods – petrol, diesel, ATF, natural gas and crude oil – were kept out of its purview.

 

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Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

Global Methane Pledge

Note4Students

From UPSC perspective, the following things are important :

Prelims level: GHGs, CO2 Equivalents

Mains level: Greenhouse Effect

The Global Methane Pledge was launched at the ongoing UN COP26 climate conference in Glasgow.

What is the Global Methane Pledge?

  • Global Methane Pledge is an agreement to reduce global methane emissions.
  • One of the central aims of this agreement is to cut down methane emissions by up to 30 per cent from 2020 levels by the year 2030.
  • The pledge was first announced in September by the United States and the European Union.
  • So far, over 90 countries have signed this pledge.

Why methane?

  • According to the UN, 25 % of the warming that the world is experiencing today is because of methane.
  • Methane is the second-most abundant greenhouse gas in the atmosphere, after carbon dioxide.
  • According to IPCC, methane accounts for about half of the 1.0 degrees Celsius net rise in global average temperature since the pre-industrial era.

About Methane

  • Methane is a greenhouse gas, which is also a component of natural gas.
  • There are various sources of methane including human and natural sources.
  • The anthropogenic sources are responsible for 60 per cent of global methane emissions.
  • It includes landfills, oil and natural gas systems, agricultural activities, coal mining, wastewater treatment, and certain industrial processes.
  • The oil and gas sectors are among the largest contributors to human sources of methane.
  • These emissions come primarily from the burning of fossil fuels, decomposition in landfills and the agriculture sector.

What is Coal-based Methane?

  • CBM, like shale gas, is extracted from unconventional gas reservoirs — where gas is extracted directly from the rock that is the source of the gas (shale in case of shale gas and coal in case of CBM).
  • The methane is held underground within the coal and is extracted by drilling into the coal seam and removing the groundwater.
  • The resulting drop in pressure causes the methane to be released from the coal.

Try this PYQ:

Q. With reference to two non-conventional energy sources called ‘coalbed methane’ and ‘shale gas’, consider the following ‘statements:

  1. Coalbed methane is the pure methane gas extracted from coal seams, while shale gas is a mixture of propane and butane only that can be extracted from fi ne-grained sedimentary rocks.
  2. In India abundant coalbed methane sources exist, but so far no shale gas sources have been found.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

Post your answers here.

Why is dealing with methane important for climate change?

  • Methane has a much shorter atmospheric lifetime (12 years as compared to centuries for CO2).
  • However, it is a much more potent greenhouse gas simply because it absorbs more energy while it is in the atmosphere.
  • The UN notes that methane is a powerful pollutant and has a global warming potential that is 80 times greater than carbon dioxide, about 20 years after it has been released into the atmosphere.

Back2Basics: CO2 Equivalents

  • Each greenhouse gas (GHG) has a different global warming potential (GWP) and persists for a different length of time in the atmosphere.
  • The three main greenhouse gases (along with water vapour) and their 100-year global warming potential (GWP) compared to carbon dioxide are:

1 x – carbon dioxide (CO2)

25 x – methane (CH4) – I.e. Releasing 1 kg of CH4into the atmosphere is about equivalent to releasing 25 kg of CO2

298 x – nitrous oxide (N2O)

  • Water vapour is not considered to be a cause of man-made global warming because it does not persist in the atmosphere for more than a few days.
  • There are other greenhouse gases which have far greater global warming potential (GWP) but are much less prevalent. These are sulphur hexafluoride (SF6), hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs).
  • There are a wide variety of uses for SF6, HFCs, and PFCs but they have been most commonly used as refrigerants and for fire suppression.
  • Many of these compounds also have a depleting effect on ozone in the upper atmosphere.

 

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Police Reforms – SC directives, NPC, other committees reports

Gujarat grants Parole to Prisoners as Diwali gift

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Parole and Furlough

Mains level: Prison reforms in India

The Gujarat government has decided to grant 15-day parole to prisoners above 60 years of age and women prisoners, except those booked in serious offences, as a ‘Diwali gift’.

What is Parole?

  • Furlough and parole envisage a short-term release from custody, both aimed as reformative steps towards prisoners.
  • Parole is granted to meet a “specific exigency” and cannot be claimed as a matter of right.
  • Both provisions are subject to the circumstances of the prisoner, such as jail behaviour, the gravity of offences, sentence period and public interest.

How is it different from Furlough?

  • Furlough may be granted without any specific reason after a convict spends a stipulated number of years.
  • It is a matter of right although cannot be claimed as an ‘absolute legal right’.

Is ‘parole as Diwali gift’ an extraordinary move?

  • The state governments often take a compassionate view on applications for parole during festivals of Diwali, Rakshabandhan, etc.
  • The legislature/politicians do not have direct powers to grant parole on suo-motu cognizance.
  • The announcement only indicates that prisoners will have to make applications to the authorities concerned, which in turn will be considered with leniency and expeditiously.
  • The applications will, however, be subject to scrutiny and the prisoners’ conduct and gravity of their offence.

Who can opt for parole and how?

  • The provision of parole is available to convicts found guilty by a court and such a prisoner.
  • The prisoner’s relative/legal aid may submit an application to the prison superintendent.
  • He/she in turn forwards the application to the ‘competent authority’, often under the jurisdiction of district magistrate concerned and comprising prison and police authorities, to sanction release.
  • After due verification of reasons and prisoner’s conduct by the competent authority, an order for grant of release on parole will be issued.
  • In case of rejection of the said application, a convict may approach the High Court.

Duration of Parole

  • The Prison rules state that parole period may be granted for not more than 30 days.
  • The competent authority may exercise its discretion in case of serious illnesses or death of “nearest relative such as mother, father, sister, brother, children, spouse of the prisoner, or in case of natural calamity.”
  • Parole or extension of parole cannot be granted without a report of the police
  • Apart from the remedy to approach a high court for parole in case of a rejected application, a prison can also approach the high court directly in case of an extraordinary emergency.

 

Try this PYQ from CSP 2021:

Q. With reference to India, consider the following statements:

  1. When a prisoner makes a sufficient case, parole cannot be out denied to such prisoner because it becomes a matter of his/her right.
  2. State Governments have their own Prisoners Release on Parole Rules.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

Post your answers here.

 

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Government Budgets

Ensuring that policy outcome matches the intent

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Dealing with the structural limitations of policy

Context

Policy differences between parties and coalitions arouse heated debates in legislatures and at political rallies. But relatively scant attention is paid to whether the stated policy or enacted law — of any persuasion — delivered the intended outcomes/results.

Issues with annual budget modalities

  • There are limitations in the structural design of the Union and the state governments of India, which either cause or enable inefficient translation of policy intent to semi-realised outcomes.
  • Nowhere is this more obvious than in the annual budget modalities followed by the Union and state governments.
  • The final accounts (FA) for a financial year are generally presented to the legislative body between 18 and 24 months after that year’s budget is approved, most often as a minor artefact along with the main attraction of the budget for the upcoming year and the minor attraction of the Revised Estimate (RE) for the year in progress.
  • In effect, a small fraction of the attention paid to intent (budget) is paid to the outcome (FA) which is only known many months after the year is over.
  • Governments in India adhere to the archaic cash accounting as opposed to accrual accounting, which is the norm for most companies and governments which introduces some strange incentives and behaviours, especially towards the end of the year.
  • As a result, even the final account is not what it seems, with the possibility that significant funds which have been presented to the legislature as spent are still held in off-balance-sheet accounts not visible to the government’s finance department.

Way forward: Lessons from Tamil Nadu government

  • This structural limitation was the basis for the initiative to identify and retrieve unutilised funds that the Tamil Nadu government.
  • New procedures and systems will ensure that such moving/parking of funds (especially as the year ends) cannot happen outside of the finance department’s oversight.
  • On another front, the data-integrity project undertaken to support (among other reasons) the crop and jewel loan waiver poll promise has also produced remarkable results.
  • Many instances of ghost pension recipients and free-rice-entitled category of ration card holders and malfeasance in crop and jewel loan sanctioning have come to light.
  • The rectification of such anomalies will save the government a significant amount of funds, but, more importantly, enable fairer societal outcomes.
  • Tamil Nadu is diligently following the five-step approach: Collect and analyse data to develop a deeper understanding, disseminate results into the public domain and generate a public debate, receive feedback from the debate and inputs from experts, use these inputs to design policies and put into execution, constantly seek feedback and course correct when needed.

Conclusion

We need the thoughtful design of policies and schemes, and their execution, which are vital to achieving our intended goal of benefiting all citizens in a fair and inclusive manner.

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Foreign Policy Watch: India-United States

Trade and climate, the pivot for India-U.S. ties

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- India-US trade and climate partnership

Context

The fate of the grand strategic ambitions of the Indo-US relationship may depend substantially on how well they collaborate in two areas to which their joint attention is only belatedly turning — climate and trade.

Importance of climate change and trade to India-US partnership

  • Strategic partnerships capable of re-shaping the international global order cannot be based simply on a negative agenda.
  • Shared concerns about China provide the U.S.-India partnership a much-needed impetus to overcome the awkward efforts for deeper collaboration that have characterised the past few decades.
  • What risks being lost is a reckoning with how interrelated climate and trade are to securing U.S.-India leadership globally, and how their strategic efforts can flounder without sincere commitment to a robust bilateral agenda on both fronts.

India-US collaboration on climate change and challenges

  • India and the U.S. are collaborating under the Climate and Clean Energy Agenda Partnership.
  • In parallel, there are hopeful signs that they are now prioritising the bilateral trade relationship by rechartering the Trade Policy Forum. 
  • At COP26 in Glasgow India announced a net zero goal for 2070, it has called for western countries to commit to negative emissions targets.
  • Challenges: India’s rhetoric of climate justice is likely to be received poorly by U.S. negotiators, particularly if it aligns with China’s messaging and obstructs efforts to reach concrete results.

Collaboration on trade

  • The failure of the U.S. and India to articulate a shared vision for a comprehensive trade relationship raises doubts about how serious they are when each spends more time and effort negotiating with other trading partners.
  • Protectionist tendencies infect the politics of both countries these days, and, with a contentious U.S. mid-term election a year away, the political window for achieving problem-solving outcomes and setting a vision on trade for the future is closing fast.

Climate-trade inter-relationship

  • Climate and trade are interrelated in many ways.
  • If governments, such as India and the U.S., coordinate policies to incentivise sharing of climate-related technologies and align approaches for reducing emissions associated with trade, the climate-trade inter-relationship can be a net positive one.
  • India and the U.S. could find opportunities to align their climate and trade approaches better, starting with a resolution of their disputes in the World Trade Organization (WTO) on solar panels.
  • The two countries could also chart a path that allows trade to flow for transitional energy sources, such as fuel ethanol.
  • Shared strategic interests will be undermined if India and the U.S. cannot jointly map coordinated policies on climate and trade.
  • The most immediate threat could be the possibility of new climate and trade tensions were India to insist that technology is transferred in ways that undermine incentives for innovation in both countries or if the U.S. decides that imports from India be subject to increased tariffs in the form of carbon border adjustment mechanisms or “CBAMs”.

Conclusion

Concerted action on both the climate and trade fronts is mutually beneficial and will lend additional strength to the foundation of a true partnership for the coming century.

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RBI Notifications

RBI issues revised Prompt Corrective Action (PCA) framework

Note4Students

From UPSC perspective, the following things are important :

Prelims level: PCA framework

Mains level: Paper 3- PCA framework

The RBI has issued a revised Prompt Corrective Action (PCA) framework for banks to enable supervisory intervention at “appropriate time” and also act as a tool for effective market discipline.

What is the PCA framework?

  • Prompt Corrective Action Framework refers to the central bank’s watchlist of weak banks.
  • The regulator imposes restrictions like curbs on lending on such banks.
  • The PCA Framework applies only to commercial banks and does not cover cooperative banks and non-banking financial companies.

When was PCA introduced?

  • The RBI’s PCA Framework was introduced in December 2002 as a structured early intervention mechanism along the lines of the US Federal Deposit Insurance Corporation’s PCA framework.
  • The last PCA Framework was issued by the RBI on April 13, 2017, and implemented with respect to banks’ financials as of March 31, 2017.

Latest PCA norms

  • The revised PCA framework will be effective from January 1, 2022.
  • Capital, asset quality and leverage will be the key areas for monitoring in the revised framework.
  • That apart, RBI has also revised the level of shortfall in total capital adequacy ratio that would push the lender to “risk threshold three” category.

When exactly does a bank fall into this list?

  • The RBI has specified certain regulatory trigger points with respect to three parameters for the initiation of the process:
  • Capital-to-risk weighted assets ratio (CRAR): It is a measure of a bank’s capital to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital requirements.
  • Net Non-Performing Assets (NPA)
  • Return on assets (RoA): It is an indicator of how well a company utilizes its assets in terms of profitability.

What are the trigger points on capital and how does a breach invite action?

1. CRAR

  • If CRAR falls to less than 9 percent, the RBI asks banks to submit a capital restoration plan, restricts new businesses and dividend payments.
  • The RBI also orders recapitalisation, restrictions on borrowings from the inter-bank market, reduction of stake in subsidiaries and reduction of exposure to sensitive sectors.
  • Such sectors include the capital markets, real estate or investments in non-statutory liquidity ratio securities.
  • If CRAR is less than 6 percent but equal to or more than 3 percent, the RBI could take additional steps if the bank fails to submit a recapitalisation plan.

2. NPA levels

  • If net NPAs rise beyond 10 percent but are less than 15 percent, a special drive to reduce bad loans and contain the generation of fresh NPAs begins.
  • The RBI reviews the bank’s loan policy and takes steps to strengthen credit-appraisal skills.

3.Return on assets

  • If RoA is less than 0.25 percent, restrictions on accessing/renewing costly deposits and CDs kick in and the RBI bars the bank from entering new lines of business.
  • The bank’s borrowings from the inter-bank market, making dividend payments and increasing staff will be restricted.

Significance of PCA

  • The financial health of a bank: Essentially PCA helps RBI monitor key performance indicators of banks, and taking corrective measures, to restore the financial health of a bank.
  • Averting a crisis: PCA is intended to help alert the regulator as well as investors and depositors if a bank is heading for trouble. The idea is to head off problems before they attain crisis proportions.

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India launches Infrastructure for the Resilient Island States (IRIS)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- SIDS

The PM has launched the Initiative for the Resilient Island States (IRIS) for developing infrastructure of small island nations.

What is IRIS?

  • The Small Island Developing States or SIDS face the biggest threat from climate change.
  • To mitigate this, India’s space agency ISRO will build a special data window for them to provide them timely information about cyclones, coral-reef monitoring, coast-line monitoring etc. through satellite.
  • IRIS will be a part of the India-UK Coalition for Disaster Resilient infrastructure (CDRI).

About CDRI

  • The CDRI is an international coalition of countries, UN agencies, multilateral development banks, the private sector etc. that aim to promote disaster-resilient infrastructure.
  • Its objective is to promote research and knowledge sharing in the fields of infrastructure risk management, standards, financing, and recovery mechanisms.
  • It was launched by the Indian PM Modi at the 2019 UN Climate Action Summit in September 2019.

Focus areas

  • CDRI’s initial focus is on developing disaster-resilience in ecological, social, and economic infrastructure.
  • It aims to achieve substantial changes in member countries’ policy frameworks and future infrastructure investments, along with a major decrease in the economic losses suffered due to disasters.

Try this PYQ:
Q.Consider the following statements:
Climate and Clean Air Coalition (CCAC) to Reduce Short Lived Climate Pollutants is a unique initiative of G20 group of countries
The CCAC focuses on methane, black carbon and hydrofluorocarbons.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Post your answers here.

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Minority Issues – SC, ST, Dalits, OBC, Reservations, etc.

In news: National Commission for Scheduled Castes (NCSC)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: National Commission for Scheduled Castes

Mains level: Paper 2- NCSC

The National Commission for Scheduled Castes (NCSC) will examine the complaint of a decorated Narcotics Control Bureau (NCB) officer against caste-based allegations by a Maharashtra minister.

About National Commission for Scheduled Castes

  • NCSC is a constitutional body under Article 338 of the Indian Constitution.
  • It functions under the jurisdiction of Ministry of Social Justice and Empowerment.
  • It was established with a view to provide safeguards against the exploitation of Scheduled Castes.
  • It aims to promote and protect their social, educational, economic and cultural interests, special provisions were made in the Constitution.

How were they established?

  • The original constitution provided for the appointment of a Special Officer under Article 338.
  • The special officer was designated as the Commissioner for Scheduled Castes and Scheduled Tribes.
  • The 65th Constitutional Amendment Act 1990, amended Article 338 of the Constitution to introduce a joint NC for SCs and STs.
  • Later by 89th Amendment, NC for Scheduled Castes (NCSC) and NC for Scheduled Tribes (NCST) were separated by creating a new Article 338-A.

Functions

  • To investigate and monitor all matters relating to the safeguards provided for the SCs
  • To inquire into specific complaints with respect to the deprivation of rights and safeguards of the Scheduled Castes
  • To participate and advise on the planning process of socio-economic development of the SCs
  • To evaluate the progress of their development under the Union and any State
  • To present to the President, annually and at such other times as the Commission may deem fit, reports upon the working of those safeguards
  • To make in such reports recommendations as to the measures that should be taken by the Union or any State
  • To discharge such other functions as the President may, subject to the provisions of any law made by Parliament, by rule specify

Note: National Commission for Backward Castes is also a constitutional body too. According to article 340, President shall establish a commission to examine the condition of social and backward class.

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Giant Magellan Telescope (GMT)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Giant Magellan Telescope

Mains level: Paper 3- GMT

In Chile’s dry Atacama Desert, stargazers are scanning the clear night skies to detect the existence of life on other planets and study so-called ‘dark energy’. Central to the race to peer into distant worlds is the GMT.

Giant Magellan Telescope (GMT)

⦁ The GMT is a ground-based extremely large telescope under construction.
⦁ It is US-led in partnership with Australia, Brazil, and South Korea, with Chile as the host country.
⦁ It will consist of seven 8.4 m (27.6 ft) diameter primary segments, that will observe optical and near infrared (320–25000 nm) light.
⦁ It will have the resolving power of a 24.5 m (80.4 ft) primary mirror and collecting area equivalent to a 22.0 m (72.2 ft) one which is about 368 square meters.
⦁ It is expected to have a resolving power 10 times greater than the Hubble Space Telescope.

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Bakc2Basics: Hubble Space Telescope

⦁ The Hubble Space Telescope is a space telescope that was launched into low Earth orbit in 1990 and remains in operation.
⦁ It was not the first space telescope, but it is one of the largest and most versatile, renowned both as a vital research tool and as a public relations boon for astronomy.
⦁ It is said to be the “most significant advance in astronomy since Galileo’s telescope.
⦁ It captures images of deep space playing a major role in helping astronomers understand the universe by observing the most distant stars, galaxies and planets.

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[pib] Manipuri Basanta Raasa

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Manipur dance

Mains level: Paper 1- Dance forms

As part of the celebrations of Azadi Ka Amrit Mahotsav, a celebration of Destination North East India, dance and music of Manipur was organised.

Manipuri Raas Leela

  • The Raas Leela, also referred to as Manipuri Dance, is one of the major Indian classical dance forms, originating from the state of Manipur.
  • The dance form is based on Hindu Vaishnavism themes, and exquisite performances of love-inspired dance drama of Radha-Krishna called Raas Leela.

Notable features

  • It is marked by a performance that is graceful, fluid, sinuous with greater emphasis on hand and upper body gestures.
  • It is accompanied with devotional music created with many instruments, with the beat set by cymbals (kartal or manjira) and double-headed drum (pung or Manipuri mrdanga) of sankirtan.
  • The dance drama choreography shares the plays and stories of Vaishnavite Padavalis, that also inspired the major Gaudiya Vaishnava-related performance arts found in Assam and West Bengal.

Try this PYQ from CSP 2017:
With reference to Manipuri Sankirtana, consider the following statements:
It is a song and dance performance.
Cymbals are the only musical instruments used in the performance.
It is performed to narrate the life and deeds of Lord Krishna.
Which of the statements given above is/are correct?
(a) 1, 2 and 3.
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1 only

Post your answers here.

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

Mixed signals on growth-inflation dynamics

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Recovery momentum

Context

We are now at that point in the cycle where all central banks — the RBI, the US Fed, the European Central Bank, Bank of England and others — have begun to signal, a process of normalisation from the unprecedented loose monetary policy stimulus post the onset of the pandemic in early 2020.

Recovery momentum

  • Surveys and data prints are now signalling that the recovery momentum in the first half of 2021 is decelerating in many countries, although the direction and momentum may vary.
  • The RBI Governor notes that “the external environment, which had been supportive of aggregate demand over the past few months, may lose momentum for a variety of reasons”.
  • China — its policy and economy — is the most salient risk for a sustained global recovery.
  • The Chinese authorities’ seeming determination to push ahead with structural reforms, de-carbonising initiatives, and curbs on real estate appear designed to sacrifice some short-term growth for medium-term efficiencies, and reduce financial risks and inequality.
  • Inflation in almost all major economies continues to remain high.
  • The US Personal Consumption Expenditure (PCE) survey measure of core inflation is running over 4 per cent.
  • The story is similar in Europe.

Assessing India’s growth recovery

  • India’s growth–inflation dynamics are also becoming favourable, but are still subject to multiple risks.
  • In assessing India’s growth recovery, a risk of the global economy going into “stagflation”, going by US signals seems to be that if at all, it is likely to be mild.
  • The recovery of economic activity continues, although the high-frequency indicators we track suggest that the momentum observed in July and August has moderated.
  • Electricity consumption growth is also down from August levels, but part of this can be explained by both cooler, rainy weather, as well as coal shortage related cutbacks in many electricity-intensive manufacturing.
  • The residential real estate is reportedly doing exceptionally well, with low-interest rates on home loans, cuts in stamp duty and registration charges, and indeed behavioural shifts towards own home ownerships with hybrid and work from home shifts.
  • Even the commercial real estate sector is reviving.
  • The Union government also has large unspent cash balances, which can be judiciously deployed to boost both capex and consumption.
  • The overall inflation trajectory suggests a gradual glide path towards the 4 per cent target by March 2023 or a bit beyond.
  • There are risks of overshooting this forecast trajectory, despite a benign outlook on food prices.
  • This emanates from global metals, minerals, crude oil prices, and from supply bottlenecks persisting till well into 2022.

Conclusion

In summary, the growth–inflation signals remain mixed. Multiple episodes of global spillovers in the past couple of decades have taught us that imminent normalisation will have implications for all emerging markets.

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Important Judgements In News

The Supreme Court is walking the talk on citizens’ rights

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Right to privacy and judicial review

Mains level: Paper 2- Balancing the fundamental rights of the citizens with national security concerns

Context

When the bench of the Chief Justice of India passed an order appointing a committee in the Pegasus matter, it served the interest of every Indian.

What led to the appointment of committee by the Supreme Court

  • Pegasus has allegedly been used against politicians and individuals across the globe, including against politicians, journalists and other private individuals in India.
  • The issue rocked Parliament, but the government was not willing to share any information pertaining to the software or its use, citing national security as a reason.
  • The alleged victims of the software turned to the Supreme Court, and prayed for setting up of an independent enquiry.
  • The government, on being called upon by the Supreme Court, cited national security, contending that any information it let out would become a matter of public debate, which could be used by terror groups to hamper national security.
  • Its unrelenting stand left the court with no option but to take a call on whether to blindly accept the government’s refusal to share no information whatsoever, or lean in favour of a citizen’s right to privacy, a fundamental right guaranteed under the Constitution.
  • The Supreme Court chose the latter course.

Balancing the fundamental rights  nad judicial review with national security

  • The Supreme Court has observed that “the state cannot get a free pass every time the spectre of national security is raised”.
  • It goes on to say that national security “cannot be the bugbear that the judiciary shies away from, by virtue of its mere mentioning. Although this court should be circumspect in encroaching upon the domain of national security, no omnibus prohibition can be called for against judicial review”.

Conclusion

The Pegasus order upholding the individual’s right to a life of dignity and privacy, is music to the ears of those who believe in constitutional values and rule of law.
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Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

India offers ‘Panchamrita’ Strategy for Climate Conundrum at Glasgow

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Panchamrita

Mains level: India's INDC

PM Modi has proposed a five-fold strategy called the ‘Panchamrita’ for India to play its part in helping the world get closer to 1.5 degrees Celsius on the first day of the global climate meeting in Glasgow.

What is Panchamrita?

  • ‘Panchamrita’ is a traditional method of mixing five natural foods — milk, ghee, curd, honey and jaggery. These are used in Hindu and Jain worship rituals. It is also used as a technique in Ayurveda.
  • The PM euphemistically termed his scheme as ‘Panchamrita’ meaning the ‘five ambrosia’.
  • Under Panchamrita’, India will:
  1. Get its non-fossil energy capacity to 500 gigawatts by 2030
  2. Meet 50 per cent of its energy requirements till 2030 with renewable energy
  3. Reduce its projected carbon emission by one billion tonnes by 2030
  4. Reduce the carbon intensity of its economy by 45 per cent by 2030
  5. Achieve net zero by 2070

Key takeaways of PM’s speech

(a) Commitment for climate action

  • India consists of 17 per cent of the world’s population but contribute only five per cent of emissions.
  • Yet, it has left no stone unturned in doing our bit to fight climate change.
  • At Paris, India was making promises not to the world but to itself and 1.3 billion Indians, PM said.

(b) Climate finance

  • The 2015 Paris CoP where the Paris Agreement was signed was not a summit but a sentiment.
  • The promises made till now on climate finance were useless.
  • When we all are increasing our ambitions on climate action, the world’s ambition could not stay the same on climate finance as was agreed at the time of Paris.

(c) India’s track record

  • India was fourth as far as installed renewable energy capacity was concerned.
  • The Indian Railways has pledged to make itself net-zero by 2030. This will result in an annual 60 million tonnes reduction in emissions.
  • India initiated the International Solar Alliance for solar energy.
  • It has also set up the coalition for disaster resilient infrastructure for climate adaptation.

 

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

[pib] BASIC Countries

Note4Students

From UPSC perspective, the following things are important :

Prelims level: BASIC Countries, Copenhagen Accord

Mains level: Not Much

The Union Environment Minister has delivered the statement on behalf of the BASIC group of countries at the UN Climate Change Conference underway at Glasgow.

Who are the BASIC Countries?

  • The BASIC countries (also Basic countries or BASIC) are a bloc of four large newly industrialized countriesBrazil, South Africa, India and China.
  • It was formed by an agreement on 28 November 2009.
  • The four committed to act jointly at the Copenhagen climate summit, including a possible united walk-out if their common minimum position was not met by the developed nations.
  • This emerging geopolitical alliance, initiated and led by China, then brokered the final Copenhagen Accord with the United States.

What is the Copenhagen Accord?

  • The Copenhagen Accord is a document signed at COP 15 to the UNFCCC on 18 December 2009.
  • The Accord states that global warming should be limited to below 2.0 °C (3.6 °F).
  • It does not specify what the baseline is for these temperature targets (e.g., relative to pre-industrial or 1990 temperatures).
  • In January 2010, the Accord was described merely as a political agreement and not legally binding, as is argued by the US and Europe.
  • It is not legally binding and does not commit countries to agree to a binding successor to the Kyoto Protocol, whose round ended in 2012.
  • According to the UNFCCC, these targets are relative to pre-industrial temperatures.

 

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Wildlife Conservation Efforts

Guidelines released for safe rescue, release of Ganges River Dolphins (GRDs)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Gangetic Dolphin

Mains level: Not Much

The Jal Shakti Ministry has released a guide for the safe rescue and release of stranded Ganges River Dolphins.

Gangetic Dolphin

  • The Gangetic river system is home to a vast variety of aquatic life, including the Gangetic dolphin (Platanista gangetica).
  • The species, whose global population is estimated at 4,000, are (nearly 80%) found in the Indian subcontinent.
  • It is found mainly in the Indian subcontinent, particularly in Ganga-Brahmaputra-Meghna and Karnaphuli-Sangu river systems.
  • It is one of five species of river dolphin found around the world.
  • Only three species of freshwater dolphins are remaining on the earth after the functional extinction of the Chinese river Dolphin (Baiji) in 2006.

Conservation status

  1. The GRDs have been designated the National Aquatic Animal of India since 2010.
  • It is listed as:
  1. Endangered under IUCN Red List
  2. Schedule I of the Indian Wildlife (Protection) Act (1972)
  3. Appendix I of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)

About the guidelines

  • The document has been prepared by the Turtle Survival Alliance, India Program and Environment, Forest and Climate Change Department (EFCCD), Uttar Pradesh.
  • The guide has been drawn from years of experience of the organization while rescuing 25 Ganges River Dolphins (GRDs) stranded in irrigation canals.

Various threats

  • They often accidentally enter canal channels in northern India and are often entrapped, and die as they are unable to swim up against the gradient.
  • They are eventually harassed by the locals.
  • Opportunistic poaching for meat and oil in certain pockets of the country is another big threat.

 

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Policy Wise: India’s Power Sector

Why India needs a Ministry of Energy?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Coal shortage issue

Context

The blame cannot be placed on the doors of any one entity or ministry for the shortage of coal.

Ministries linked with coal shortage issue

  • The Ministry of Coal and Coal India must certainly accept that they slipped up somewhere — whether in managing the production process, planning supplies or leaving vacant crucial leadership positions.
  • The Ministry of Power/NTPC should also accept responsibility as they allowed coal inventories to fall below the recommended minimum in an effort to better manage their working capital.
  • But they can claim they had no other option because the state government electricity distribution companies do not pay their dues on time or fully.
  • The discoms will point a finger at their political bosses, who compel them to sell electricity to residential and agricultural sector consumers at subsidised tariffs.

Structural issues

  • There is no one public body at the central or state government level with executive oversight, responsibility and accountability for the entirety of the coal value chain.
  • This is a lacuna that afflicts the entire energy sector.
  • It will need to be filled to not only prevent a recurrence of another coal crisis but also for the country to realise its “green” ambition.
  • The word “energy” is not part of the political or administrative lexicon.
  • At least not formally. As a result, there is no energy strategy with the imprimatur of executive authority.
  • The NITI Aayog may well challenge this statement.
  • For they have produced an energy strategy.

Suggestions

  • Energy act: The government should pass an Act (possibly) captioned “The Energy Responsibility and Security Act.”
  • This Act should elevate the significance of energy by granting it constitutional sanctity; it should embed in law, India’s responsibility to provide citizens access to secure, affordable and clean energy.
  • The law should lay out measurable metrics for monitoring the progress towards the achievement of energy independence, energy security, energy efficiency and “green” energy.
  • Ministry of energy: Towards the fulfillment of this mandate, the government should redesign the existing architecture of decision-making for energy.
  • Preference would be for the creation of an omnibus Ministry of Energy to oversee the currently siloed verticals of the ministries of petroleum, coal, renewables and power.
  • The department would have a narrower remit than the other energy departments but by virtue of its location within the PMO, it would, de facto, be the most powerful executive body with ultimate responsibility for navigating the “green transition”.

Benefits

  • It is important to stress the positive impact the above redesign will have on investor sentiment.
  • Several corporates have signaled their intent to invest mega bucks in clean energy.
  • Reliance has committed $10 billion, Adani $ 70 billion over 10 years; Tata Power, ReNew Power and Acme Solar have also placed their stakes in the ground.

Conclusion

Energy sector will be immensely benefited if the current fragmented and opaque regulatory, fiscal and commercial systems and processes were replaced by a transparent and single-point executive decision-making body for energy.

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Important Judgements In News

The Court’s order on Pegasus still falls short

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Pegasus software

Mains level: Paper 2- Pegasus issue

Context

The Supreme Court of India appointed an independent committee to inquire into charges that the Union government had used the mobile phone spyware Pegasus to invade, access, and snoop into devices used by India’s citizens.

Background

  • The petitioners before the Supreme Court relied on an investigation conducted by a consortium of global media.
  • These reports revealed that hundreds of phone numbers from India had appeared on a global list of more than 50,000 numbers that were selected for surveillance by clients of the Israeli firm, the NSO Group.
  • The NSO has since confirmed that its spyware is sold only to governments, chiefly for the purposes of fighting terrorism.

Government’s defence

  • In response to the allegations made against it, the Government invoked national security.
  • What is more, according to it, the very adoption of this argument virtually forbade the Court from probing further.
  • In matters purportedly involving national security, the Court has shown an extraordinary level of deference to the executive.
  • The cases also posed another hurdle: a contest over facts.
  • The petitioners were asserting the occurrence of illegal surveillance.
  • The Government was offering no explicit response to their claims.
  • Now, to some degree, in its order appointing a committee, the Court has bucked the trend of absolute deference.
  • The Court has held that there is no magic formula to the Government’s incantation of national security, that its power of judicial review is not denuded merely because the state asserts that the country’s safety is at stake.

Accountability on part of the government

  • The order recognises, correctly, that spying on an individual, whether by the state or by an outside agency, amounts to an infraction of privacy.
  • This is not to suggest that all surveillance is illegal.
  • In holding thus, the Court has effectively recognised that an act of surveillance must be tested on four grounds:
  • First, the action must be supported by legislation.
  • Second, the state must show the Court that the restriction made is aimed at a legitimate governmental end.
  • Third, the state must demonstrate that there are no less intrusive means available to it to achieve the same objective;
  • Finally, the state must establish that there is a rational nexus between the limitation imposed and the aims underlying the measure.
  • The test provides a clear path to holding the Government accountable.

Way forward

  • The absence of a categorical denial from the Government, the order holds, ought to lead to a prima facie belief, if nothing else, that there is truth in the petitioners’ claims.
  •  Having held thus, one might have expected the Court to frame a set of specific questions demanding answers from the state.
  • If answers to these questions were still not forthcoming, elementary principles of evidence law allow the Court to draw what is known as an “adverse inference”. 
  • A party that fails to answer questions put to it will only risk the Court drawing a conclusion of fact against it.
  • If, on this basis, the petitioners’ case is taken as true, there can be little doubt that there has been an illegitimate violation of a fundamental right.
  • It is, therefore, unclear why we need a committee at all.
  • Ultimately, in the future, the Court must think more carefully about questions of proof and rules of evidence.

Conclusion

Ad hoc committees — sterling as their members might be — cannot be the solution. Far too many cases are consigned to the back burner on the appointment of external panels, and, in the process, civil liberties are compromised.

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