Note4Students
From UPSC perspective, the following things are important :
Prelims level: India's coal import
Mains level: Paper 3- Issues with India's power sector
Context
Across several states, the fiscal situation is becoming increasingly challenging. Yet, the common thread that runs through these deficits — state ownership and control — remains unaddressed.
State ownership: structural cause of India’s deficit
- Coal India’s inability to raise production to meet growing demand contributed to the recent power crisis.
- The state-owned power distribution companies have failed to bring down losses despite many schemes and packages.
- The state control of these critical aspects of India’s power chain is central to a higher current account deficit and growing fiscal risks at the state level.
Coal output fails to meet the demand
- From 2013-14, the Indian economy has grown by around 50 per cent (in real terms).
- But Coal India, which accounts for around 80 per cent of India’s total coal production, was able to raise its output by just 34 per cent over the same period.
- Increased reliance on imported coal: India’s coal imports (thermal and cooking) rose to a staggering 230.3 million tonnes in 2020-21, up 37 per cent from 168.5 million tonnes in 2013-14.
- Coal imports for thermal power alone have more than doubled in the first quarter, compared to the same period last year.
- To put this in perspective — the value of coal imports in just the first three months of this year is likely to be around half of what was imported in all of last year.
- Increase in current account deficit: This growing reliance on coal imports (along with crude and gold) is at the root of the country’s widening current account deficit.
- An inability to ramp up production, to forecast demand accurately, as every episode of coal shortage over the years has exposed, is the hallmark of the coal sector that is still largely the preserve of a public sector monopoly.
Problem of DISCOMS
- No improvement in financial and operational issues: Despite repeated attempts to turn around their financial and operational positions, on key metrics, the divide between the public and private sector discoms is deepening.
- In 2019-20, public sector discoms lost Rs 0.72 per unit of power sold, while private discoms made Rs 0.20 per unit.
- High AT&C losses: Similarly, in 2019-20, the AT&C losses (due to operational inefficiencies) for state discoms were pegged at 21.7 per cent, while for the private sector, losses were at 8 per cent.
- With deteriorating finances, the net worth of all public sector discoms put together stands at a negative Rs 61,757 crore, while for the private sector, it is a positive Rs 24,965 crore.
- There have been several attempts to rescue state discoms.
- In the early 2000s, the scheme for repayment of SEB dues amounted to Rs 41,473 crore.
- In 2012, the financial restructuring plan added up to Rs 1.19 lakh crore.
- In 2015, UDAY involved a transfer of Rs 2.01 lakh crore to state government balance sheets.
- Notwithstanding various schemes to turn around their finances, the total debt of all discoms put together stood at Rs 5.14 lakh crore at the end of 2019-20.
- Of this, Rs 4.87 lakh crore is owed by state discoms.
- Impact on entire power chain: A deterioration in the financial position of discoms means that their dues to power generating companies start mounting, which in turn delay payments to coal miners, affecting the financial stability of the entire power chain.
Declining cross-subsidisation
- As tariffs charged by discoms are much higher than the cost of alternatives, a sizeable part of non-agricultural sales of discoms (industrial and commercial consumers) have already shifted towards captive and solar.
- And with the ministry of power recently reducing the threshold for green energy open access, more and more consumers will increasingly opt out.
- This would mean that discom losses will rise as cross subsidisation from commercial and industrial consumers will decline, increasing their dependence on state subsidies.
- In 2019-20, the total state subsidy claimed and released was around Rs 1.1 lakh crore or 17 per cent of total discom revenue.
- This will only increase down the line, making future bailouts even more fiscally challenging.
Conclusion
Tackling these deficits requires addressing the issue of government control over critical aspects of India’s energy sector. Without shifting to market-determined prices — reforms are ultimately about price — little headway is likely to be made.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: IIBX
Mains level: Gold exchange
Prime Minister has launched India’s first International Bullion Exchange (IIBX) at the Gujarat International Finance Tec-City (GIFT City) near Gandhinagar.
What is Bullion?
- Bullion refers to physical gold and silver of high purity that is often kept in the form of bars, ingots, or coins.
- It can sometimes be considered legal tender and is often held as reserves by central banks or held by institutional investors.
When was the IIBX announced?
- During her 2020 budget speech, Finance Minister announced the setting up of India International Bullion Exchange (IIBX) at International Financial Services Center (IFSC) at GIFT City in Gandhinagar.
- The International Financial Services Centres Authority (Bullion Exchange) Regulations, 2020, was notified in December 2020 for trading of precious metals, including gold and silver.
- These regulations also cover bullion exchange, clearing corporation, depository and vaults.
What is the IIBX?
- India for the first time had liberalised gold imports through nominated banks and agencies in the 1990s.
- Now, the eligible qualified jewellers in India have been allowed to directly import gold through IIBX.
- For this, jewellers will have to become a trading partner or a client of an existing trading member.
- In addition, the exchange has set up necessary infrastructure to store physical gold and silver.
- The exchange will sell physical gold and silver and aims to be set up on the lines of the Shanghai Gold Exchange and Borsa Istanbul in order to make India a key regional hub for bullion flows.
How will it work?
- The thought process behind setting this up is to enable the trading of commodities on an exchange.
- Since this is international exchange, trading can take place in US dollars as well.
- India has positioned itself as one of the biggest trading hubs in Asia.
- Because of the competitive pricing on IIBX, international players will be happy to use our vaulting services.
- Moreover, with this being a free trade zone, no duty will be paid.
What was the practice up until now?
- Currently, gold in India is imported on a consignment model into different cities by nominated banks and agencies approved by the RBI and then supplied to traders/jewellers.
- The banks and other agencies get a fee from the gold exporter for handling, storage, etc, and also add a premium to the gold while transacting with domestic buyers.
- The buyer passes this charge on to the value chain until it reaches the end customer.
What change did IIBX bring?
- With the IIBX becoming operational today, qualified domestic buyers can, through a branch in Gift City, purchase the bars and coins.
- This purchase can be done from an international supplier who is a member of the IIBX.
What is the advantage of an exchange?
- Through the dis-intermediation by facilitating transactions through an anonymously traded exchange platform, bullion is made available across special economic zones (SEZs) at International Financial Services Centres Authority (IFSCA)-approved vaults.
- This means the growth of IIBX is not just limited to GIFT City but across jewellery manufacturing hubs nationwide.
- The qualified jeweller allowed to import gold through IIBX, or a jeweller who is a client of an IIBX member, can view the available stock and place the order.
- This shall nudge jewellers towards just-in-time inventory management.
- It will also result in greater transparency in pricing, and order sequencing, thereby removing any room for unfair preference by supplier, importing or logistics agency.
Which jewellers have come on board?
- So far, 64 big jewellers have come onboard and more applications are in the pipelines.
- Some of the big names include Malabar Gold Pvt Ltd, Titan Company Ltd, Bangalore Refinery Pvt Ltd, RBZ Jewellers Pvt Ltd, Zaveri and Company Pvt Ltd.
What are the new RBI guidelines for importing gold?
- Banks may now allow qualified Jewellers to remit advance payments for 11 days for import of gold through IIBX in compliance to the extant Foreign Trade Policy and regulations issued under IFSC Act.
- According to the RBI, all payments by qualified jewellers for imports of gold through IIBX shall be made through the exchange mechanism as approved by IFSCA.
Who can enrol on the exchange?
- Non-Resident Individual / Proprietorship Firm
- Registered Partnership Firm
- Private Limited Company
- Public Limited Company
- Qualified Jewellers
- Branches of IBU at GIFT City
- Foreign Bullion Suppliers who follow OECD guideline
- In order to become a qualified jeweller, entities require a minimum net worth of Rs 25 crore.
- And 90 per cent of the average annual turnover in the last three financial years through deals in goods categorised as precious metals.
- NRIs and institutes will also be eligible to participate in the exchange after registering with the International Financial Services Centre Association (IFSCA).
- Jewellers will be able to transact on IIBX only as trading members or as clients of a trading member.
- If one wants to become a trader, a qualified jeweller will have to establish a branch or a subsidiary in IFSC (international financial services centre) and apply to the IFSCA.
What products does IIBX offer?
- IIBX offers a diversified portfolio of products and technology services at a cost which is far more competitive than the Indian exchanges as well as other global exchanges in Hong Kong Singapore, Dubai, London and New York.
- Gold 1 kg 995 purity and gold 100 gm 999 purity with a T+0 settlement (100% upfront margin) are expected to trade at IIBX initially.
- All contracts will be listed, traded and settled in US Dollar
- The exchange will have three vaults – one operated by Sequel Global (ready and approved), the second one to be operated by Brinks India is ready and awaiting final approval and the third is under construction.
- Once the gold is imported by the authorised entities it will be deposited at one of the vaults which will issue bullion depository receipts.
- These receipts will then be traded in dollars on the exchange.
Significance of IIBX
- The IIBX shall be the “Gateway for Bullion Imports into India”, wherein all the bullion imports for domestic consumption shall be channelized through the exchange.
- The exchange ecosystem is expected to bring all the market participants to a common transparent platform for bullion trading.
- It would provide efficient price discovery, assurance in the quality of gold, and enable greater integration with other segments of financial markets.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Core Industries
Mains level: Read the attached story
India’s eight core sectors’ output growth moderated to 12.7% in June, from 18.1% in May, with all sectors except crude oil registering an uptick in production.
What are the Core Industries in India?
- The main or the key industries constitute the core sectors of an economy.
- In India, there are eight sectors that are considered the core sectors.
- They are electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilizers.
Index of Eight Core Industries (ICI) vs Index of Industrial Production (IIP)
[A] Index of Eight Core Industries
- The monthly Index of Eight Core Industries (ICI) is a production volume index.
- ICI measures collective and individual performance of production in selected eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity.
- Prior to the 2004-05 series six core industries namely Coal, Cement, Finished Steel, Electricity, Crude petroleum and Refinery products constituted the index basket.
- Two more industries i.e. Fertilizer and Natural Gas were added to the index basket in 2004-05 series. The ICI series with base 2011-12 will continue to have eight core industries.
Components covered in these eight industries for the purpose of compilation of index are as follows:
- Coal – Coal Production excluding Coking coal.
- Crude Oil – Total Crude Oil Production.
- Natural Gas – Total Natural Gas Production.
- Refinery Products – Total Refinery Production (in terms of Crude Throughput).
- Fertilizer – Urea, Ammonium Sulphate (A/S), Calcium Ammonium Nitrate (CAN), Ammonium chloride (A/C), Diammonium Phosphate (DAP), Complex Grade Fertilizer and Single superphosphate (SSP).
- Steel – Production of Alloy and Non-Alloy Steel only.
- Cement – Production of Large Plants and Mini Plants.
- Electricity – Actual Electricity Generation of Thermal, Nuclear, Hydro, imports from Bhutan.
[B] Index of Industrial Production
- The Index of Industrial Production (IIP) is an index for India which details out the growth of various sectors in an economy such as mineral mining, electricity and manufacturing.
- The all India IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.
Difference between the two
- IIP is compiled and published monthly by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation six weeks after the reference month ends.
- However, ICI is compiled and released by Office of the Economic Adviser (OEA), Department of Industrial Policy & Promotion (DIPP), and Ministry of Commerce & Industry.
- The Eight Core Industries comprise nearly 40.27% of the weight of items included in the Index of Industrial Production (IIP).
- These are Electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilisers.
Importance of Core Industries
- The core sectors have a major impact on the Indian economy and significantly affect most other industries as well.
- Their measures help account for the physical volume of production in India.
- Their analysis offers a clearer and more realistic assessment of what’s happening in the economy
- Their progress is used by government agencies for policy-making purposes.
- They remain extremely relevant for the calculation of the quarterly and advanced Gross Domestic Product (GDP) estimates.
- The core sector is also known as Infrastructure output as they represent the basic industries that form the base of the economy.
Do you know about the Strategic Sectors?
The government has identified four strategic sectors where the presence of state-run companies will be reduced to a minimum.
- Atomic energy, space and defence
- Transport and telecommunications
- Power, petroleum, coal and other minerals and
- Banking, insurance and financial services
Try this PYQ:
Q.In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?
(a) Coal production
(b) Electricity generation
(c) Fertilizer production
(d) Steel production
Post your answers here.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Article 21
Mains level: Read the attached story
Every person on the planet has the right to live in a clean, healthy environment, as declared United Nations (UN) in a historic resolution.
Access to Clean, Healthy Environment
- The resolution recognizes the right to a clean, healthy and sustainable environment as a human right essential for the full enjoyment of all human rights and, among others.
- It calls upon States and international organizations to adopt policies and scale up efforts to ensure a clean, healthy and sustainable environment for all.
- The landmark development demonstrates that the member states can unite in the collective fight against the triple planetary crisis of climate change, biodiversity loss and pollution.
- The declaration sheds light on almost all the rights connected to the health of our environment.
- The declaration adopted by over 160 UN member nations, including India, is not legally binding.
Why such move?
- This right was not included in the Universal Declaration of Human Rights, 1948.
- So, this is a historic resolution that will change the very nature of international human rights law.
- The resolution will help to reduce environmental injustices and protection gaps.
- It can empower people, especially those in vulnerable situations, including environmental human rights defenders, children, youth, women and indigenous people.
Landmark resolution after 50 years
- Some 50 years ago, the United Nations Conference on the Environment in Stockholm concluded with a resolution placing environmental issues at the global forefront.
- Today, over 176 countries have adopted environmental framework laws on the basis of it.
- From a foothold in the 1972 Stockholm Declaration, these rights have been integrated into constitutions, national laws and regional agreements.
- In October 2021, it was recognised by the UN Human Rights Council.
What were other such developments?
- July 28, 2010, the UN general assembly recognised the right to water and sanitation through its resolution.
- It stated that clean drinking water and sanitation “are essential to the realisation of all human rights”.
- In response to this, governments across the world have changed their laws and regulations related to water and sanitation.
Issues over this declaration
- The words’ ‘clean’, ‘healthy’ and ‘sustainable’ lack an internationally agreed definition.
- The text fails to refer to the foundational principle of equity in international environmental law.
- Nevertheless, this has given more power in the hands of environmental activists to question environmentally destructive actions and policies.
Back2Basics: Right to Clean Environment in India
- The right to life has been used in a diversified manner in India.
- It includes, inter alia, the right to survive as a species, quality of life, the right to live with dignity and the right to livelihood.
- In India, this has been expressly recognised as a constitutional right under Article 21.
- It states: ‘No person shall be deprived of his life or personal liberty except according to procedures established by law.’
- The Supreme Court expanded this negative right in two ways.
- Firstly, any law affecting personal liberty should be reasonable, fair and just.
- Secondly, the Court recognized several unarticulated liberties that were implied by article 21.
- It is by this second method that the Supreme Court interpreted the right to life and personal liberty to include the right to a clean environment.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: State Assemblies for 2021 Report
Mains level: States Legislature efficiency
Kerala, which slipped to the eighth slot in holding Assembly sittings during the first wave of the COVID-19 pandemic in 2020, returned to the top spot in 2021, with its House sitting for 61 days, the highest in the country.
State Assemblies for 2021 Report
- The report on the functioning of State Assemblies for 2021 is published by the PRS Legislative Research (PRS), a New Delhi-based think tank.
How did other states fare?
- Odisha followed Kerala with 43 sitting days; Karnataka 40, and Tamil Nadu 34 days.
- But for the top three States, the average number of sittings of State legislatures would have been far lower than the present figure of 21 days.
- Of the 28 State Assemblies and one Union Territory’s legislature, 17 met for less than 20 days.
- Of them, five — Andhra Pradesh, Nagaland, Sikkim, Tripura and Delhi — met for less than 10 days.
- The figures for Uttar Pradesh, Manipur and Punjab were 17, 16 and 11, respectively.
- Andhra Pradesh with 20 ordinances and Maharashtra with 15 followed Kerala.
Why is this ranking significant?
- The National Commission to Review the Working of the Constitution (2000-02), headed by former Chief Justice of India M.N. Venkatachaliah, had prescribed the standards for working of legislatures.
- The Houses of State (/Union Territory) legislatures with less than 70 members, for example, Puducherry, should meet for at least 50 days a year and other Houses (Tamil Nadu), at least 90 days.
- The Presiding Officers’ conference, held in Gandhinagar in January 2016, suggested State legislatures hold a minimum of 60 days of sittings in a year.
- Between 2016 and 2021, the PRS points out, 23 State Assemblies met for an average of 25 days.
- As for the ordinance route, which should be, according to the Supreme Court, used under exceptional circumstances, 21 out of 28 States promulgated ordinances last year.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Issues with PMLA
Context
The Supreme Court has upheld the constitutional validity of the provisions of the Prevention of Money Laundering Act (PMLA), calling it a “unique and special legislation” and underlining the powers of the Directorate of Enforcement (ED) to hold inquiries, arrest people and attach property.
Prevention of Money Laundering Act (PMLA)
- PMLA, 2002 is an Act of the Parliament of India enacted by the NDA government to prevent money laundering and to provide for confiscation of property derived from money laundering.
- It was enacted in response to India’s global commitment (including the Vienna Convention) to combat the menace of money laundering.
- PMLA and the Rules notified there under came into force with effect from July 1, 2005.
- The act was amended in the year 2005, 2009 and 2012.
Objectives of PMLA
The PMLA seeks to combat money laundering in India and has three main objectives:
- To prevent and control money laundering.
- To confiscate and seize the property obtained from the laundered money; and
- To deal with any other issue connected with money laundering in India.
Issues with the PMLA
- Opacity: The Enforcement Case Report (the analogue of an FIR) is not shared with the accused.
- Nor are the full grounds of arrest shared with you.
- Bail cannot be granted without hearing the prosecution and you are required to prove your innocence to get bail.
- Lack of clarity in definition: The definition of crime under this Act is elastic.
- The sovereign has immense latitude to define what counts as the relevant crime.
- It can also in a classic instance of rule by law change the presumption of innocence.
- Lack of safeguard: The list of crimes included overrides similar crimes in other parts of the law.
- The code has an exceptional procedure of its own that can trump the safeguards of the Criminal Code of Procedure.
- In theory, the law provides safeguards against attaching properties, but those safeguards are weak and do not allow for even reasonable exceptions that might be necessary for your dignity or continuing with your business or livelihood.
- Mere possession of the proceeds of a crime, without any surrounding consideration of how one came to be in possession of the proceeds, makes it an offence.
- That the state officials are not classed as police. But they, in some respects, have even more power than the police.
- Use of Money Bill route: The law itself has been enacted by using the controversial Money Bill route.
- Low conviction rate: The conviction rate under this law is very low, less than 0.5 per cent.
- Misuse of law: The stringent provisions and vagueness in definitions in the law make it susceptible to misuse against a political opponenet.
- International context: Post 9/11, there was concern with terrorist financing and arguably many international treaties actually weakened, rather than strengthened, individual rights protections.
- The goal of international treaties is laudable.
- But the rhetoric of international treaties is often used to override domestic rights safeguards.
Conclusion
There is a need for a review of the various provision and definitions in the law and their utility.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Sports in India
Noting that the most prestigious FIDE 44th Chess Olympiad had for the first time come to India — the home of chess — during the 75th year of freedom from colonial rule, PM Modi said there had never been a better time for sports in India.
Sports in India
- Physical activity is fundamental to human beings: The report states that having a fundamental right to literacy would mean identifying the intrinsic value of physical activity to human living.
- Part of elementary education: It would mean not seeing physical activity as an end in itself, and the establishment of physical activity/ physical education as a core component of the education curriculum.
- Supportive to other FRs: A fundamental right to physical literacy would actualise and enhance the enjoyment of other fundamental rights. It would go a long way in enhancing the opportunities and freedom to express oneself.
- Enhancing life quality: A physically literate individual would have a more fulfilling life of higher quality than one who is not. Physical literacy, as a building block, would go a long way in the promotion and realisation of the right to health and the right to education.
- Religion as a barriers: Some sports like swimming and athletics require attire that does not fully cover a woman’s body and are against the laws of some religions. They are often debated in light of modesty of the sportspersons beings violated.
- Associated social reforms: Many women perceive sports as an opportunity to escape the confines of a highly regulated life. They use it as a tool to show their potential and tackle the patriarchal mindset. Further success of sportspersons like Mary Kom, Saina Nehwal, etc. have played a pivotal role in curbing the problems of child marriage and son meta preference.
Issues with Sports in India
- Poor performance in competitions: India has the worst population to medals ratio at the Olympics. We find our medal tally at the Olympics to be hopelessly out of sync with our 1.3 billion population.
- Regressive attitude towards sports: Our attitude towards sport and physical well-being is another debilitating factor. Traditionally, India has not been a sports nation where many deserving candidates are discouraged right at the starting level.
- Economic divide: It hard reality which we consistently refuse to acknowledge. Athletes are not generated from the comfortable classes, they invariably come often from the middle and lower economic strata.
- Incentivization: There is more focus on post-success incentivization rather than pre-success support in India. For instance, the Haryana Government announced a 6 crore reward after Neeraj Chopra won the gold medal in Tokyo Olympics 2020.
Significance of physical education and sports
- Physical development: Fitness, Health
- Mental development: It improves decision-making and collective action. It also acts as stress buster.
- Character/ personality development: It instils confidence, team spirit, team coordination, group work)
Benefits of augmenting sports career
- Alternative career development: For those for whom opportunities are few, and jobs are scarce, sport becomes a powerful mobility device. A strong sports sector encourages an average/ poor academic student to make a career in sports.
- Reaping demographic dividend: India is having a very young population and is soon going to become the world’s youngest country. In such a scenario, a robust sports sector can help in reaping the potential demographic dividend.
- Revenue generation: Developing robust sports infrastructure in the country will allow India to host a greater number of international events. Such hosting boosts tourism in the country and results in enhancing the revenue and employment in the region. Ex. IPL
- Promotes the spirit of Unity in Diversity: People cheer for the Indian athletes and Indian teams at international events. An improvement in sports automatically fosters the spirit of brotherhood amongst the people of diverse nations. For instance, the Pan India support enjoyed by Indian cricket team enhances belongingness between India’s north and south.
Reasons for India’s poor performance
India’s below-par performance in sports can be attributed to the combination of all the factors discussed below:
- Lack of facilities: We have thousands of education centres all over the country, but there are very few schools and colleges which have adequate facilities for any sport.
- Regional discrepancies: The spending of money is concentrated in major cities where facilities do exist, but the broad-based structure to tap and develop talent is missing. The facilities wherever they are created are confined to a few popular games like cricket, hockey, football, tennis, etc.
- Burden of ill-health: Mother and child health is an all-time contested issue in India. This may well be attributed to weather conditions, poor economic condition generally-due to which nutrition is not available to most of our children.
- Narrow perception: The parents are keen that their kids should do well studies to get a degree and ultimately fetch a good job. Playing for long hours regularly is considered a waste of time.
- Lesser academia for physical education: There are few Sports Colleges which are genuinely making efforts to produce national-level sportsmen, but their number is so small that no perceptible impact is seen due to their existence.
- Lack of training: Another reason for our poor performance in sports is the lack of required number of trainers, coaches and psychotherapists. There is also a dearth of quality coaching or the qualified coaches.
- Non-interest: The west often accuse that Indians lack the killer’s instinct. The zest and enthusiasm necessary to win over the opponent is naturally absent in the Indian psyche.
- Obsession for few sports: There is no doubt that cricket and hockey plays a major unifying role in India. However, other sports and sportsperson are often discouraged due to such obsessions.
- Performance anxiety: A high degree of pressure is inflicted upon a sportsperson to perform or else be prepared to live a vulnerable life. This sometimes creates excessive mental stress in them or induces them to resort to unethical means like doping.
Various initiatives for sports promotion
The Ministry of Youth Affairs & Sports has formulated the following schemes to promote sports in the country, including in rural, tribal and backward areas:
- Khelo India Scheme
- Assistance to National Sports Federations
- Special Awards to Winners in International sports events and their Coaches
- National Sports Awards, Pension to Meritorious Sports Persons
- Pandit Deendayal Upadhyay National Sports Welfare Fund
- National Sports Development Fund; and
- Running Sports Training Centres through Sports Authority of India
Way forward
- Sports is a state subject and therefore uniformity in sports-specific activities of various states in India is extremely important for providing equal sporting opportunities to all the citizens of the country.
- We have to take collective action to create a system and a proper environment whereby the young talent is spotted and developed in right earnest.
- Integration of sports with education to introduce sports culture in India is the need of the hour.
- The allocation of funds to sport, as a percentage of budget, can be increased for broad-basing sports in this country.
- There is also a need to develop a culture in whole country by spreading awareness in society by telling benefit of sports in life.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Coffee Act
Mains level: Coffee cultivation in India
The Ministry of Commerce and Industry is planning to replace the 80-year-old Coffee Act with the new Coffee (Promotion and Development Bill), 2022, which has been listed for the Monsoon Session of Parliament.
What is the Coffee Act?
- The Coffee Act, 1942 was first introduced during World War II, in order to protect the struggling Indian coffee industry from the economic downturn caused by the war.
- In the 1930s, the Indian coffee industry was facing significant problems, such as large-scale damage by pests and diseases, and the global economic downturn caused by the Great Depression.
- With coffee planters making significant losses, the government passed the Coffee Cess Act (XIV of 1935) and established the first Indian Cess Committee in November 1935.
- This aimed to promote the sale of coffee and increase consumption of Indian coffee at home and abroad.
- These problems from the 1930s were compounded with the outbreak of World War II, as low demands and a loss of foreign markets led to a sharp decline in coffee prices.
- Since the Cess Committee was not able to deal with the crisis faced by the industry, the government formed the Coffee Board, through the introduction of the Coffee Act, 1942.
Purpose of the Act
- The purpose of the Act was to provide for the development of the coffee industry.
- The Board was tasked with supporting the industry in marketing, promotion of consumption, finance and research and development.
Why scrap the old law?
- The government is now trying to scrap the law because it claims that many of the provisions have become redundant and are too restrictive.
- It has also proposed to repeal the decades old laws on tea, spices and rubber, and introduce new legislations in order to increase the ease of doing business and promote the development of these sectors.
- These are very old laws and the idea is only to simplify them, make it easier to do business.
- It aims to ensure that the small people in the different areas like coffee growing, tea growing do not have to suffer from high levels of compliance burden.
Major contentious factor: Pooling System
- Before India liberalised its economy in 1991, the Coffee Board controlled the marketing of the commodity in its entirety, both in India and abroad.
- The Act introduced a pooling system, where each planter was required to distribute their entire crop to a surplus pool managed by the Board, apart from the small quantities that were allowed for domestic use and seed production.
- The Board marketed 70% of the total pool for export and 30% for domestic markets, and sold them in separate auctions, according to Takamasa Akiyama, an economist affiliated with the World Bank.
- In order to spur domestic consumption, the price of domestic coffee was kept artificially low.
The changes since liberalization
- While the Coffee Board no longer maintains its monopolistic control over the marketing of Indian coffee.
- Through a series of amendments, the Board’s authority was reduced, and in 1996, the pooling system was abolished and growers were allowed to directly sell to processing firms.
- The coffee market was entirely deregulated and the growers exposed to the free market.
- Since liberalization, the Coffee Board plays more of an advisory role, and aims at increasing production, promoting further export and supporting the development of the domestic market.
What are the proposed changes?
- In order to facilitate growth and ease of doing business, the government would remove the restrictive and redundant provisions.
- The centre wants to introduce a simplified version of the Act to suit the present needs of the industry.
- The government would not close the Coffee Board, but would rather shift it from the Ministry of Commerce to the Ministry of Agriculture.
- Here it aims to ensure that the benefits of all agricultural schemes are extended to coffee growers.
- The new legislation is now primarily concerned with promoting the sale and consumption of Indian coffee including through e-commerce platforms, with fewer government restrictions.
- It also aims at encouraging further economic, scientific and technical research in order to align the Indian coffee industry with “global best practices.”
Back2Basics: Coffee Production in India
- India is the third-largest producer and exporter of coffee in Asia and the sixth-largest producer and fifth-largest exporter of coffee in the world.
- The country accounts for 3.14% (2019-20) of the global coffee production.
- Coffee production in India is dominated in the hill tracts of South Indian states, with Karnataka accounting for 71%, followed by Kerala with 21% and Tamil Nadu (5%).
- Indian coffee is said to be the finest coffee grown in the shade rather than in direct sunlight anywhere in the world.
- Almost 80% of Indian coffee is exported.
- The two well-known species of coffee grown are the Arabica and Robusta. The first variety was introduced in the Baba Budan Giri hill ranges of Karnataka in the 17th century.
- Brazil is, the largest coffee producer in the world.
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From UPSC perspective, the following things are important :
Prelims level: Kaleshwaram Lift Irrigation Project (KLIP)
Mains level: Read the attached story
The Supreme Court has ordered status quo on the Kaleshwaram Lift Irrigation Project (KLIP) after it was told the Telangana government was increasing the capacity of the project without any environmental clearances.
Kaleshwaram Lift Irrigation Project (KLIP)
- The KLIP is a multi-purpose irrigation project on the Godavari River in Kaleshwaram, Bhupalpally in Telangana.
- Currently the world’s largest multi-stage lift irrigation project, its farthest upstream influence is at the confluence of the Pranhita and Godavari rivers.
- The Pranahita River is itself a confluence of various smaller tributaries including the Wardha, Painganga, and Wainganga rivers which combine to form the seventh-largest drainage basin on the subcontinent.
- It remains untapped as its course is principally through dense forests and other ecologically sensitive zones such as wildlife sanctuaries.
Grandeur of the project
- Till date, the biggest lift schemes in the world were the Colorado lift scheme in America and the Great Manmade River in Egypt.
- The capacities of these schemes are in horsepower and they took over three decades for completion.
- Now, the Kaleshwaram lift irrigation project, an Indian lift scheme has become the worlds biggest in terms of capacities.
Key facts associated
- Built across Godavari river, KLIP will lift the water to a height of half-a-kilometre.
- It is designed to irrigate 45 lakh acres for two crops in a year, meet the drinking water requirement of 70 percent of the state and also cater to the needs of the industry.
- The foundation stone for the Rs 80,500 crore project was laid in 2016 and claimed to be the world’s biggest project of its kind, completed in the shortest time.
- The government is planning to lift two thousand million cubic (TMC) feet of Godavari water per day from Medigadda barrage.
- Claimed to be an engineering marvel, the project comprises 1,832 km water supply route, 1,531 km gravity canal, 203 km tunnel routes, 20 lifts, 19 pump houses and 19 reservoirs with a storage capacity of 141 TMCs.
- It requires nearly 4,992 MW of electricity to pump 2 TMC of water every day in the first phase. The requirement will go up to 7,152 MW for lifting 3 TMC from next year.
How important is KLIP to Telangana?
- The project will enable farmers in Telangana to reap multiple crops with a year-round supply of water wherein earlier they were dependent on rains resulting in frequent crop failures.
- This year, Telangana farmers have already delivered bumper rabi crops of paddy and maize due to better irrigation facilities and an extended monsoon.
- KLIS covers several districts which used to face rainfall deficit and the groundwater is fluoride-contaminated.
- Apart from irrigation, a main component of the project is the supply of drinking water to several towns and villages and also to twin cities of Hyderabad and Secunderabad.
- Mission Bhagiratha, to supply drinking water to every household in villages, draws a large quantity of water from the KLIS and some quantity from projects on River Krishna.
- There is a burgeoning freshwater fishing industry in the state.
Issues with the Project
- The NGT has observed that the Telangana government subsequently changed the design of the project to increase its capacity.
- By increasing its capacity to pump 3 TMC water from 2 TMC, large tracts of forest land and other land were taken over and massive infrastructure was built causing an adverse impact on the environment.
- Extraction of more water certainly requires more storage capacity and also affects hydrology and riverine ecology of Godavari River.
- Such issues have to be examined by the statutory authorities concerned.
Back2Basics: National Green Tribunal
- It is a specialized body set up under the National Green Tribunal Act (2010) for effective and expeditious disposal of cases relating to environmental protection and conservation of forests and other natural resources.
- With the establishment of the NGT, India became the third country in the world to set up a specialized environmental tribunal, only after Australia and New Zealand, and the first developing country to do so.
- NGT is mandated to make disposal of applications or appeals finally within 6 months of filing of the same.
- The NGT has five places of sittings, New Delhi is the Principal place of sitting and Bhopal, Pune, Kolkata and Chennai are the other four.
Structure of NGT
- The Tribunal comprises of the Chairperson, the Judicial Members and Expert Members. They shall hold office for a term of five years and are not eligible for reappointment.
- The Chairperson is appointed by the Central Government in consultation with the Chief Justice of India (CJI).
- A Selection Committee shall be formed by the central government to appoint the Judicial Members and Expert Members.
- There are to be at least 10 and a maximum 20 full-time judicial members and Expert Members in the tribunal.
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From UPSC perspective, the following things are important :
Prelims level: Tiger conservation
Mains level: Read the attached story
As the world celebrates yet another World Tiger Day July 29, 2022, there is sobering news.
Why in news?
- The International Union for the Conservation of Nature (IUCN) recently confirmed that the tiger has gone extinct in Cambodia, Laos and Vietnam.
Tigers in India
- India is home to a third of the global tiger population and the country’s success in saving the big cat is crucial to global efforts to protect their numbers.
- India was the first country in the world to champion the cause of conservation of the tiger and its natural habitats.
- The aesthetic, ethical and cultural value of tigers have also proved to be critical factors for saving tigers, which has also ensured the success of tiger conservation in India.
Why is it necessary to conserve Tigers?
The tiger is a unique animal that plays a pivotal role in the health and diversity of an ecosystem.
- Predation balance: It is a top predator which is at the apex of the food chain.
- Regulation of herbivores: It keeps the population of wild ungulates in check, thereby maintaining the balance between prey herbivores and the vegetation upon which they feed.
- Ecosystem balance: Therefore, the presence of tigers in the forest is an indicator of the well being of the ecosystem.
- Tourism: Apart from the ecological services provided by the animal, the tiger also offers direct use such as attracting tourists, which provide incomes for local communities.
Various efforts to save Tigers
India is home to 70 percent of the global tiger population. Therefore, the country has an important role to play in tiger conservation.
[1] Project Tiger
- The Government of India started ‘Project Tiger’ in 1972 with a view to conserving the animal.
- As part of this project nine core buffer areas for maintaining tiger population were notified. Now, this has >expanded to 48 tiger reserves.
[2] CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora)
- Besides protecting tiger territory, other measures being taken to save the tiger include: curbing wildlife trade through international agreements.
- CITES is an international agreement between governments aimed at ensuring that international trade in specimens of wild animals and plants, including tigers, does not threaten their survival. India ratified this treaty in 1976.
[3] Global Tiger Forum and Tiger Range Countries
- Established in 1994, the Global Tiger Forum is the only inter-governmental body for tiger conservation.
- Its membership includes seven tiger range countries: Bangladesh, Bhutan, India, Cambodia, Myanmar, Nepal and Vietnam.
[4] CA|TS
- 14 tiger reserves have been accredited under CA|TS (Conservation Assured | Tiger Standards) categories.
- The CA|TS is a set of criteria that examines the management of tiger sites to gauge the success rates of tiger conservation.
[5] St. Petersburg Declaration
- This resolution was adopted In November 2010, by the leaders of 13 tiger range countries (TRCs) assembled at an International Tiger Forum in St. Petersburg, Russia
- It aimed at promoting a global system to protect the natural habitat of tigers and raise awareness among people on white tiger conservation.
[6] Various NGOs
- International NGO members consist of World Wildlife Fund, International Fund for Animal Welfare (IFAW), and TRAFFIC.
- Several national NGOs from India and Nepal are also members.
Success of these efforts
The four-year tiger census report, Status of Tigers in India, 2018 shows the number of the big cat has increased across all landscapes.
The total count has risen to 2,967 from 2,226 in 2014 — an increase of 741 individuals (aged more than one year), or 33%, in four years.
- At present, India has around 75% of tiger population and its source areas amongst the 13 tiger range countries in the world.
- 2.24% of country’s geographical area is spread out in 51 tiger reserves in 18 States.
Various threats to Tigers
- Despite measures being initiated to protect wild tigers, habitat loss and poaching continue to pose a threat to the animal’s survival.
- Tiger parts are used in traditional Chinese medicines, tiger skin is used for decorative and medicinal purposes and tiger bones are again used for medicinal purposes for curing body pain, et al.
- Between 2000 and 2014, TRAFFIC’s research found that parts of a minimum of 1,590 Tigers were seized in Tiger range States, an average of two Tigers per week.
Other existential threats to tigers
- Man-Animal conflict: This largely seems a normal phenomenon in India. We broadly remember the case of Tigress Avni which was finally shot dead by the forest officials in Maharashtra.
- Shrinking habitat: This often leads to territorial conflicts among the Tigers.
- Issues with Tourism: Excess of tourist activities is problematic for animals. Frequent visits in reserved forests areas disrupt them to move freely for their prey.
- Climate Change: The effects of climate change and floods are a major problem. The latest study by WWF shows that Sundarban which is one of the biggest home of tigers in India would sink entirely in 2070.
Way forward
- The process of tiger conservation should be more dynamic and compatible with the future possibilities of climatic changes as well.
- The Forest Department and the Central government can collaborate to protect the natural corridors to ensure the free movement of the tigers for better food resources.
- Campaigns such as ‘Save the Tiger’ are recommended as effective measures to make people across the country and globe aware of the significance of conserving tiger species.
- Sensitization of local communities against poaching is also a crucial measure in this regard.
- We have to make the environment and development co-exist and go hand in hand by planning our future developmental goals in such a manner that our environmental goals are not compromised.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: INS Vikrant
Mains level: Indigenization of defense production
The Indian Navy took delivery of IAC-1 the ‘Vikrant’, the nation’s first indigenously built aircraft carrier from its manufacturer, Cochin Shipyard Ltd.
Vikrant
- INS Vikrant also known as Indigenous Aircraft Carrier 1 (IAC-1), is an aircraft carrier constructed by the Cochin Shipyard Limited (CSL) for the Indian Navy.
- It is the first aircraft carrier to be built in India.
- It is named ‘Vikrant’ as a tribute to India’s first aircraft carrier, Vikrant (R11).
- The name Vikrant means “courageous” in Sanskrit.
- Work on the ship’s design began in 1999, and the keel was laid in February 2009.
- The carrier was floated out of its dry dock on 29 December 2011 and was launched on 12 August 2013.
Why is it important for India to have an aircraft carrier?
- An aircraft carrier is one of the most potent marine assets for any nation, which enhances a Navy’s capability to travel far from its home shores to carry out air domination operations.
- Many experts consider having an aircraft carrier as essential to be considered a “blue water” navy — that is, a navy that has the capacity to project a nation’s strength and power across the high seas.
- An aircraft carrier generally leads as the capital ship of a carrier strike/ battle group.
- As the aircraft carrier is a prized and sometimes vulnerable target, it is usually escorted in the group by destroyers, missile cruisers, frigates, submarines, and supply ships.
And why is it a big deal that this warship has been Made in India?
- Only five or six nations currently have the capability of manufacturing an aircraft carrier, and India has joined this prestigious club now.
- Experts and Navy officials said India has demonstrated the capacity and self-reliance to build what is considered to be one of the most advanced and complex battleships in the world.
- India’s has had aircraft carriers earlier too — but those were built either by the British or the Russians.
- The ‘INS Vikramaditya’, which was commissioned in 2013 and which is currently the Navy’s only aircraft carrier, started out as the Soviet-Russian warship ‘Admiral Gorshkov’.
- India’s two earlier carriers, the ‘INS Vikrant’ and the ‘INS Viraat’, were originally the British-built ‘HMS Hercules’ and ‘HMS Hermes’.
- These two warships were commissioned into the Navy in 1961 and 1987 respectively.
Why will this new warship be named ‘INS Vikrant’?
- IAC-1 — as the carrier is currently codenamed — has been designed by the Indian Navy’s Directorate of Naval Design (DND), and built at Cochin Shipyard Limited (CSL).
- Once commissioned, it will be called ‘INS Vikrant’, the name that originally belonged to India’s much-loved first aircraft carrier.
- It was a source of immense national pride over several decades of service before it was decommissioned in 1997.
- The original ‘Vikrant’, a Majestic-class 19,500-tonne warship, which was acquired from the UK in 1961, played a stellar role in the 1971 War with Pakistan.
What weapons and equipment will the new ‘Vikrant’ have?
- The new warship is comparable to India’s existing carrier ‘INS Vikramaditya’, which is a 44,500-tonne vessel and can carry up to 34 aircraft, including both fighter jets and helicopters.
- The Navy had earlier said that once commissioned, IAC-1 will be “the most potent sea-based asset”, which will operate the Russian-made MiG-29K fighter aircraft and Kamov-31 Air Early Warning Helicopters.
- The new ‘Vikrant’ will also operate the soon-to-be-inducted MH-60R Seahawk multirole helicopter manufactured by the American aerospace and defence company Lockheed Martin.
- It will also take onboard the Advanced Light Helicopter (ALH) built by Bengaluru-based Hindustan Aeronautics Ltd.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: International Tiger Day
Mains level: Paper 3- Tiger conservation in India
Context
India is now reporting increased tiger numbers, and a recent International Union for Conservation of Nature assessment suggests that tiger numbers have increased by 40% since 2005. This is cause for celebration. But is the rise in tiger numbers enough to prevent their extinction?
Relations between distribution and genetic variation
- Decades of research in ecology and evolution suggest that numbers are critical to avoid extinction.
- Populations that are smaller than 100 breeding individuals have a high probability of extinction.
- At the same time, for populations to persist, they should be part of larger landscapes with other such populations that are connected.
- This is because small populations are subject to chance/random events.
- These chance events may cause them to lose advantageous genetic variants, while other, detrimental genetic variants might increase in frequency.
- This process is called genetic drift.
- Individuals in small populations are more likely to be related, leading to inbreeding.
- This exposes the many slightly disadvantageous genetic variants that are present in all genomes.
- When expressed together, these detrimental genetic variants cause inbreeding depression, and reduced survival and reproduction of inbred individuals.
- A closer look at the distribution of tigers across their range shows that most tiger ‘populations’ are smaller than 100.
- This raises a question why are we not seeing extinctions happening more often? Is this because tiger populations are connected to each other?
Research findings about movement of tigers
- One way to answer the question about not so frequent extinction is to use movement data sourced from radio-collared tigers, often difficult to come by for a rare and endangered species.
- Alternatively, tigers can be genetically sampled using their excreta/scat, hair and other biological samples from different tiger reserves and analysed in a laboratory.
- Genetic variants in tiger DNA can be identified and analysed and compared across tiger reserves.
- Genetic variation in landscape with connectivity: Sets of tiger reserves that show shared genetic variation are well connected — the inference is that the intervening landscapes facilitate connectivity or movement.
- On the flip side, sets of tiger reserves that share less genetic variation must have barriers or landscapes that impede movement and connectivity.
- Most land-use types were not too bad for tiger connectivity, including agricultural fields.
- However, the presence of built-up areas and high traffic roads greatly impeded tiger movement.
- Results showed that extinction could be avoided if corridors were safeguarded.
- In summary, as long as we manage landscapes outside tiger reserves to allow tiger movement, and protect prey and tigers inside tiger reserves, tigers are sure to survive in landscapes such as central India.
Genetic changes in isolated tiger population
- Black tigers were found only in the Similipal tiger reserve in Odisha.
- Genome sequences of a litter of zoo tigers that included pseudo-melanistic cubs revealed that a single spelling mistake (or mutation) in a specific gene causes these tigers to look this way.
- Pseudo-melanistic or black tigers found in Odisha has demonstrated the genetic effects of isolation.
- Results of the research pointed to genetic drift, or random events that have lead to this genetic variant that causes pseudomelanistic coat colour becoming common only in Similipal.
- On the other side of India, in Rajasthan, genome sequences from wild tigers reveal that individuals in the Ranthambore tiger reserve show inbreeding.
- In short, we are seeing the genetic effects of isolation and small population size in wild tigers at some locations.
Way forward
- Focus on connectivity: While we celebrate the recovery of tiger populations only by looking at numbers, we must not lose sight of other factors that are critical to their continued survival, such as connectivity.
- Special attention is needed for populations that are becoming isolated and facing the genetic consequences of such isolation.
- The future of such populations may depend on genetic rescue or even the introduction of novel genetic variants.
Conclusion
We are fortunate that novel genome sequencing technology provides an opportunity to understand tigers much better in the context of their conservation. The future of tigers will require a ‘dialogue’ between such data and management strategies in order to ensure their survival. India is lucky to have so many wild tigers and we must work together to save them.
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Back2Basics: Pseudo-melanism
- Tigers have a distinctive dark stripe pattern on a light background of white or golden.
- A rare pattern variant, distinguished by stripes that are broadened and fused together, is also observed in both wild and captive populations.
- This is known as pseudo-melanism, which is different from true melanism, a condition characterised by unusually high deposition of melanin, a dark pigment.
- While truly melanistic tigers are yet to be recorded, pseudo-melanistic ones have been camera-trapped repeatedly, and only, in Simlipal, a 2,750-km tiger reserve in Odisha, since 2007
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ED, PMLA
Mains level: Read the attached story
The Supreme Court upheld the core amendments made to the Prevention of Money Laundering Act (PMLA), which gives the government and the Enforcement Directorate (ED) virtually unbridled powers of summons, arrest, and raids, and makes bail nearly impossible while shifting the burden of proof of innocence on to the accused rather than the prosecution.
Did the judgement say?
- The Supreme Court called the PMLA a law against the “scourge of money laundering” and not a hatchet wielded against rival politicians and dissenters.
- Money laundering is an offence against the sovereignty and integrity of the country. It is no less a heinous offence than the offence of terrorism, the court noted.
Why in news?
- The verdict came on an extensive challenge raised against the amendments introduced in 2002 Act by way of Finance Acts.
- The three-judge Bench said the method of introduction of the amendments through Money Bills would be separately examined by a larger Bench of the top court.
What were the petitions?
- Petitions were filed against the amendments, which the challengers claimed would violate personal liberty, procedures of law and the constitutional mandate.
- The petitioners included many veteran politicians who all claimed that the “process itself was the punishment”.
- There were submissions that the accused’s right against self-incrimination suffered when the ED summoned them and made them sign statements on threats of arrest.
- But the court said these statements were recorded as part of an “inquiry” into the proceeds of crime.
- A person cannot claim right against self-incrimination at a summons stage.
About Enforcement Directorate (ED)
- It goes back to May 1, 1956, when an ‘Enforcement Unit’ was formed in the Department of Economic Affairs.
- It then aimed for handling Exchange Control Laws violations under the Foreign Exchange Regulation Act (FERA).
- The ED today is a multi-dimensional organisation investigating economic offences under the Prevention of Money Laundering Act (PMLA), Fugitive Economic Offenders Act, Foreign Exchange Management Act and FERA.
From where does the ED get its powers?
- When proceeds of crime (property/money) are generated, the best way to save that money is by parking it somewhere, so one is not answerable to anyone in the country.
- Therefore, there was a need to control and prevent the laundering of money.
- The PMLA was brought in for this exact reason in 2002, but was enacted only in 2005.
- The objective was to prevent parking of the money outside India and to trace out the layering and the trail of money.
- So as per the Act, the ED got its power to investigate under Sections 48 (authorities under act) and 49 (appointment and powers of authorities and other officers).
At what stage does the ED step in when a crime is committed?
- Whenever any offence is registered by a local police station, which has generated proceeds of crime over and above ₹1 crore, the investigating police officer forwards the details to the ED.
- Alternately, if the offence comes under the knowledge of the Central agency, they can then call for the First Information Report (FIR) or the chargesheet if it has been filed directly by police officials.
- This will be done to find out if any laundering has taken place.
What differentiates the probe between the local police and officers of the ED?
Case study:
- If a theft has been committed in a nationalised bank, the local police station will first investigate the crime.
- If it is learnt that the founder of the bank took all the money and kept it in his house, without being spent or used, then the crime is only theft and the ED won’t interfere because the amount has already been seized.
- But if the amount which has been stolen is used after four years to purchase some properties, then the ill-gotten money is brought back in the market.
- Or if the money is given to someone else to buy properties in different parts of the country, then there is ‘laundering’ of money.
- Hence the ED will need to step in and look into the layering and attachment of properties to recover the money.
- If jewellery costing ₹1 crore is stolen, police officers will investigate the theft. The ED, however, will attach assets of the accused to recover the amount of ₹1 crore.
What are the other roles and functions of the ED?
- The ED carries out search (property) and seizure (money/documents) after it has decided that the money has been laundered, under Section 16 (power of survey) and Section 17 (search and seizure) of the PMLA.
- On the basis of that, the authorities will decide if arrest is needed as per Section 19 (power of arrest).
- Under Section 50, the ED can also directly carry out search and seizure without calling the person for questioning.
- It is not necessary to summon the person first and then start with the search and seizure.
- If the person is arrested, the ED gets 60 days to file the prosecution complaint (chargesheet) as the punishment under PMLA doesn’t go beyond seven years.
- If no one is arrested and only the property is attached, then the prosecution complaint along with attachment order is to be submitted before the adjudicating authority within 60 days.
Can the ED investigate cases of money laundering retrospectively?
- If an ill-gotten property is acquired before the year 2005 (when the law was brought in) and disposed off, then there is no case under PMLA.
- But if proceeds of the crime were possessed before 2005, kept in storage, and used after 2005 by buying properties, the colour of the money is still black and the person is liable to be prosecuted under PMLA.
Under Section 3 of PMLA, a person shall be guilty of money-laundering, if such person is found to have directly or indirectly attempted to indulge or knowingly assist a party involved in one or more of the following activities:
- Concealment; possession; acquisition; use; or projecting as untainted property; or claiming as untainted property in any manner etc.
Also read:
[Burning Issue] Enforcement Directorate (ED): Dreaded nightmare of Indian Politicians & Businessmen
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From UPSC perspective, the following things are important :
Prelims level: RLF
Mains level: Population stabilization in India
India has achieved replacement level fertility, with 31 States and UTs reaching a Total Fertility Rate (an average number of children per woman) of 2.1 or less, Union Minister of State for Health and Family Welfare has informed Parliament.
What is Replacement Level Fertility?
- Replacement level fertility is the level of fertility at which a population exactly replaces itself from one generation to the next.
- In simpler terms, it denotes the fertility number required to maintain the same population number of a country over a given period of time.
- In developed countries, replacement level fertility can be taken as requiring an average of 2.1 children per woman.
- In countries with high infant and child mortality rates, however, the average number of births may need to be much higher.
- RLF will lead to zero population growth only if mortality rates remain constant and migration has no effect.
Benefits of achieving RLF
- RLF helps ensure greater food security.
- The reduced demand for food would in turn lessen agri- culture’s impact on the environment.
- It would also likely lead to economic benefits through a “demographic dividend.”
- Finally, achieving replacement level fertility would yield significant social benefits―especially for women.
How did India achieve this?
- Between 2012 and 2020, the country added more than 1.5 crore additional users for modern contraceptives, thereby increasing their use substantially.
- India has witnessed a paradigm shift from the concept of population control to population stabilisation to interventions being embedded toward ensuring harmony of continuum care.
Way forward
- Although India has achieved replacement level fertility, there is still a significant population in the reproductive age group that must remain at the centre of our intervention efforts.
- India’s focus has traditionally been on the supply side, the providers and delivery systems but now it’s time to focus on the demand side which includes family, community and society.
- Significant change is possible with this focus, instead of an incremental change.
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From UPSC perspective, the following things are important :
Prelims level: HCES
Mains level: Not Much
The Centre has kicked off the process for conducting the quinquennial Household Consumption Expenditure Survey (HCES) this month.
What is the Household Consumer Expenditure Survey (CES)?
- The HCES is traditionally a quinquennial (recurring every five years) survey conducted by the government’s National Sample Survey Office (NSSO).
- It is designed to collect information on the consumer spending patterns of households across the country, both urban and rural.
- Typically, the Survey is conducted between July and June and this year’s exercise is expected to be completed by June 2023.
Why HCES?
- The HCES is used to arrive at estimates of poverty levels as well as review key economic indicators like Gross Domestic Product (GDP).
- The results of the survey are also utilised for updating the consumption basket and for base revision of the Consumer Price Index.
- It helps generate estimates of household Monthly Per Capita Consumer Expenditure (MPCE) as well as the distribution of households and persons over the MPCE classes.
- It is used to arrive at estimates of poverty levels in different parts of the country and to review economic indicators such as the GDP, since 2011-12.
Why need this survey?
- India has not had any official estimates on per capita household spending.
- It provides separate data sets for rural and urban parts, and also splice spending patterns for each State and Union Territory, as well as different socio-economic groups.
What about the previous survey?
- The survey was last held in 2017-2018.
- The government announced that it had data quality issues.
- Hence the results were not released.
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From UPSC perspective, the following things are important :
Prelims level: Honkong, Taiwan
Mains level: Honkong, Taiwan issue
Hong Kong’s controversial national security law should be repealed, experts on the UN Human Rights Committee said, amid concerns the legislation is being used to crack down on free speech and dissent in the former British colony.
Why in news?
- Chinese and Hong Kong officials have repeatedly used the NSL imposed by Beijing in 2020 to restore stability after the city was rocked for months by sometimes violent anti-government and anti-China protests in 2019.
- The committee, which monitors the implementation of the International Covenant on Civil and Political Rights (ICCPR) by state parties, released its findings on Hong Kong following a periodic review.
- The Hong Kong Special Administrative Region is a signatory to the ICCPR but China is not.
About Hong Kong
- A former British Colony and Autonomous Territory: Hong Kong is an autonomous territory, and a former British colony, in south-eastern China.
- It became a colony of the British Empire at the end of the First Opium War in 1842.
- Sovereignty over the territory was returned to China in 1997.
- Special Administrative Region (SAR): As a SAR, Hong Kong maintains governing power and economic systems that are separate from those of mainland China.
- The 1984 Sino-British Joint Declaration guarantees the Basic Law for 50 years after the transfer of sovereignty.
- It does not specify how Hong Kong will be governed after 2047.
- Thus, the central government’s role in determining the territory’s future system of government is the subject of political debate and speculation in Hong kong.
What is this law all about?
- Hong Kong was always meant to have a security law, but could never pass one because it was so unpopular.
- So this is about China stepping in to ensure the city has a legal framework to deal with what it sees as serious challenges to its authority.
- The details of the law’s 66 articles were kept secret until after it was passed. It criminalises any act of:
- Secession – breaking away from the country
- Subversion – undermining the power or authority of the central government
- Terrorism – using violence or intimidation against people
- Collusion– with foreign or external forces
What provisions do fall under the law?
- The law came into effect at 23:00 local time on 30 June 2020, an hour before the 23rd anniversary of the city’s handover to China from British rule.
- It gives Beijing power to shape life in Hong Kong it has never had before.
- Its key provisions include:
- Crimes of secession, subversion, terrorism and collusion with foreign forces are punishable by a maximum sentence of life in prison
- Damaging public transport facilities can be considered terrorism
- Those found guilty will not be allowed to stand for public office
- Companies can be fined if convicted under the law
- This office can send some cases to be tried in mainland China – but Beijing has said it will only have that power over a “tiny number” of cases
- In addition, Hong Kong will have to establish its own national security commission to enforce the laws, with a Beijing-appointed adviser
- Hong Kong’s chief executive will have the power to appoint judges to hear national security cases, raising fears about judicial autonomy
- Importantly, Beijing will have power over how the law should be interpreted, not any Hong Kong judicial or policy body. If the law conflicts with any Hong Kong law, the Beijing law takes priority
- Some trials will be heard behind closed doors.
- People suspected of breaking the law can be wire-tapped and put under surveillance
- Management of foreign non-governmental organizations and news agencies will be strengthened
- The law will also apply to non-permanent residents and people “from outside [Hong Kong]… who are not permanent residents of Hong Kong“.
What has changed in Hong Kong since the law was introduced?
- Hundreds of protestors, activists and former opposition lawmakers have been arrested since the law came into force.
- The arrests are an ominous sign that its crackdown on Hong Kong is only going to escalate.
- Beijing has said the law is needed to bring stability to the city, but critics say it is designed to squash dissent.
Why did China do this?
- Hong Kong was handed back to China from British control in 1997.
- But under a unique agreement – a mini-constitution called the Basic Law and a so-called “one country, two systems” principle.
- They are supposed to protect certain freedoms for Hong Kong: freedom of assembly and speech, an independent judiciary and some democratic rights – freedoms that no other part of mainland China has.
- Under the same agreement, Hong Kong had to enact its own national security law – this was set out in Article 23 of the Basic Law – but it never happened because of its unpopularity.
How can China do this?
- Many might ask how China can do this if the city was supposed to have freedoms guaranteed under the handover agreement.
- The Basic Law says Chinese laws can’t be applied in Hong Kong unless they are listed in a section called Annex III – there are already a few listed there, mostly uncontroversial and around foreign policy.
- These laws can be introduced by decree – which means they bypass the city’s parliament.
- Critics say the introduction of the law this way amounts to a breach of the “one country, two systems” principle, which is so important to Hong Kong – but clearly, it is technically possible to do this.
Must read:
[Burning Issue] National Security Law debate in Hong Kong
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Warehousing Act
Mains level: Read the attached story
The Union Food and Public Distribution Ministry has suggested major amendments to the Warehousing (Development and Regulation) Act of 2007.
Warehousing Act, 2007
- The GOI has introduced a negotiable warehouse receipt system in the country by enacting the Warehousing (Development and Regulation) Act, 2007 (37 of 2007).
- It has been made effective with effect from the 25th October, 2010.
- The Negotiable Warehouse Receipt (NWR) system was formally launched on the 26th April, 2011.
Why was this Act enacted?
- To make provisions for the development and regulation of warehouses, negotiability of warehouse receipts, establishment of a Warehousing Development and Regulatory Authority (WDRA) and related matters.
- The Negotiable Warehouse Receipts (NWRs) issued by the warehouses registered under this Act would help the farmers to seek loans from banks against NWRs.
- It will avoid distress sale of agricultural produce.
What is the amendment about?
- The aim is to help farmers get access to the services of quality warehouses.
- The amendment is:
- To make registration of godowns compulsory
- To raise the penalty for various offences and
- To do away the jail term as a punishment for the offences
- Central government will have powers to exempt any class of warehouses from registration with the Authority.
- At present, registration with the Warehousing Development and Regulation Authority (WDRA) is optional.
- After the proposed amendment, which is yet to be cleared by the cabinet, registration of all third party warehouses throughout the country, will be undertaken in a phased manner.
- The Act wants to establish a system of negotiable and non-negotiable warehouse receipt (NWR), which is now in electronic form.
Issues
- Farmers pressure groups fears that the amendments are for bringing back certain provisions of the repealed Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act through the backdoors.
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From UPSC perspective, the following things are important :
Prelims level: Money Bill
Mains level: Issues with PMLA
The court has left it open for a seven-judge Bench to decide whether the amendments to the PMLA could have been made to the PMLA through the Money Bill route.
What was the case about Money Bill?
- In November 2019, a five-judge Bench led by then CJI Ranjan Gogoi had referred to a larger Bench the issue and question posed in the Roger Mathew vs South Indian Bank Ltd. Case.
- It inquired to whether amendments like these can be passed as a Money Bill in violation of Article 110 of the Constitution.
- The petitioners had questioned the legality of the PMLA amendments which were introduced via Finance Acts/Money Bills.
Correlation Money Bill
- A Money Bill is deemed to contain only provisions dealing with all or any of the matters under clauses (a) to (g) of Article 110(1), largely including the appropriation of money from the Consolidated Fund of India and taxation.
- In other words, a Money Bill is restricted only to the specified matters and cannot include within its ambit any other matter.
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.
Difference between money and finance bill
- 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.
Issues with notifying a bill as Money Bill
- 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.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: USOF
Mains level: Expansion of internet connectivity
The Union Cabinet has approved a project for providing 4G mobile services in thousands of villages across the country under the USOF.
What do you mean by Universal Service?
- In the modern world, universal service refers to having a phone and affordable phone service in every home.
- It means, providing telecommunication service with access to a defined minimum service of specified quality to all users everywhere at an affordable price.
- In 1837, the concept was rolled on by Rowland Hill, a British educator and tax reformer, which included uniform rates across the UK and prepayment by sender via postage stamps.
What is USOF?
- The Universal Service Obligation Fund (USOF) was formed by an Act of Parliament, was established in April 2002 under the Indian Telegraph (Amendment) Act 2003.
- It aims to provide financial support for the provision of telecom services in commercially unviable rural and remote areas of the country.
- It is an attached office of the Department of Telecom, and is headed by the administrator, who is appointed by the central government.
Scope of the USOF
- Initially, the USOF was established with the fundamental objective of providing access to ‘basic’ telecom services to people in rural and remote areas at affordable and reasonable prices.
- Subsequently, the scope was widened.
- Now it aims to provide subsidy support for enabling access to all types of telecom services, including mobile services, broadband connectivity and the creation of infrastructure in rural and remote areas.
Funding of the USOF
- The resources for the implementation of USO are raised by way of collecting a Universal Service Levy (USL), which is 5 percent of the Adjusted Gross Revenue (AGR) of Telecom Service Providers.
Nature of the fund
- USOF is a non-lapsable Fund.
- The Levy amount is credited to the Consolidated Fund of India.
- The fund is made available to USOF after due appropriation by the Parliament.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: United Nations Peacekeeping
Mains level: Read the attached story
Two BSF personnel recently got martyrdom who were part of the UN Peacekeeping Mission in the Democratic Republic of the Congo (DRC).
Why in news?
- A total 175 Indian peacekeepers have so far died while serving with the United Nations.
- India has lost more peacekeepers than any other UN Member State.
What is United Nations Peacekeeping?
- UN Peacekeeping helps countries navigate the difficult path from conflict to peace.
- UN peacekeepers are often referred to as Blue Berets or Blue Helmets because of their light blue berets or helmets) can include soldiers, police officers, and civilian personnel.
UNPKF in operation
- Since 1948, UN Peacekeepers have undertaken 71 Field Missions.
- There are approximately 81,820 personnel serving on 13 peace operations led by UNDPO, in four continents currently.
- This represents a nine-fold increase since 1999.
- A total of 119 countries have contributed military and police personnel to UN peacekeeping.
- Currently, 72,930 of those serving are troops and military observers, and about 8,890 are police personnel.
India’s contribution to UN Peacekeeping
- India has a long history of service in UN Peacekeeping, having contributed more personnel than any other country.
- To date, more than 2,53,000 Indians have served in 49 of the 71 UN Peacekeeping missions established around the world since 1948.
- Currently, there are around 5,500 troops and police from India who have been deployed to UN Peacekeeping missions, the fifth highest amongst troop-contributing countries.
- India has also provided and continues to provide, eminent Force Commanders for UN Missions.
- India is the fifth largest troop contributor (TCC) with 5,323 personnel deployed in 8 out of 13 active UN Peacekeeping Missions, of which 166 are police personnel.
History of India’s contribution
- India’s contribution to UN Peacekeeping began with its participation in the UN operation in Korea in the 1950s.
- This is where India’s mediatory role in resolving the stalemate over prisoners of war in Korea led to the signing of the armistice that ended the Korean War.
- India chaired the five-member Neutral Nations Repatriation Commission, while the Indian Custodian Force supervised the process of interviews and repatriation that followed.
- The UN entrusted the Indian armed forces with subsequent peace missions in the Middle East, Cyprus, and the Congo (since 1971, Zaire).
- India also served as Chair of the three international commissions for supervision and control for Vietnam, Cambodia, and Laos established by the 1954 Geneva Accords on Indochina.
Role of women in Indian Peacekeeping
- India has been sending women personnel on UN Peacekeeping Missions.
- In 2007, India became the first country to deploy an all-women contingent to a UN Peacekeeping Mission.
- The Formed Police Unit in Liberia provided 24-hour guard duty and conducted night patrols in the capital Monrovia, and helped to build the capacity of the Liberian police.
- These women officers not only played a role in restoring security in the West African nation but also contributed to an increase in the number of women in Liberia’s security sector.
Medical care as part of India’s Missions
- In addition to their security role, the members of the Indian Formed Police Unit also organized medical camps for Liberians, many of whom have limited access to health care services.
- Medical care is among the many services Indian Peacekeepers provide to the communities in which they serve on behalf of the Organization.
- They also perform specialized tasks such as veterinary support and engineering services.
India’s views on UN Peacekeeping
- India is of the view that the international community must grasp the rapid changes that are underway in the nature and role of contemporary peacekeeping operations.
- The Security Council’s mandates to UN Peacekeeping operations need to be rooted in ground realities, and co-related with the resources provided for the peacekeeping operation.
- It is critical that troop and police contributing countries should be fully involved at all stages and in all aspects of mission planning.
- There should be greater financial and human resources for peace-building in post-conflict societies, where UNPKOs have been mandated, according to officials.
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