Note4Students
From UPSC perspective, the following things are important :
Prelims level: what is moonlighting.
Mains level: Impact of moonlighting on comapnies and employment.
Context
- In July, Kotak Securities said in a study that at least 60% of 400 employees surveyed said they themselves had, or knew someone who had engaged in moonlighting.
What is mean by moonlighting?
- Moonlighting is a state where employees work for remuneration with entities other than their employers. It is not defined in any of the statutes in India. However, there are enactments that deal with double employment.
How does it affect companies and what are latest examples?
- Wipro: According to Wipro CEO, there is a lot of chatter about people moonlighting in the tech industry. This is cheating plain and simple. The company sacked 300 employees following the discovery that they were working for rival firms on the side, leading to conflict of interest.
- Infosys: Infosys has warned staff against moonlighting, saying it could lead to termination.
- Effect of WFH: Another software firm DXC Technologies said that moonlighting by employees was a challenge for employers but that wouldn’t affect its WFH (work from home) policy that has worked well for both the firm and its staff.
- Moonlighting policy: Swiggy announced a moonlighting policy’ that allows employees to pursue their passion for economic interests alongside their fulltime employment.”
- Factory act: Section 60 of the Factories Act deals with restriction on double employment stating that “No adult worker shall be required or allowed to work in any factory on any day on which he has already been working in any other factory, save in such circumstances as may be prescribed. However, this enactment is applicable only to employees working in factories.
- The Tamil Nadu Shops & Establishments Act, 1947: There are State enactments which deal with employment of persons working in offices, banks, shops, etc. In Tamil Nadu, it is termed as The Tamil Nadu Shops & Establishments Act, 1947. However, there is no provision wherein dealing with dual employment.
- Glaxo Laboratories (I) Limited vs Labour Court, Meerut and others: The apex court held that “The employer has hardly any extra territorial jurisdiction. He is not the custodian of general law and order situation or the Guru or mentor of his workmen for their well-regulated cultural advancement. If the power to regulate the behaviour of the workmen outside the duty hours and at any place wherever they may be was conferred upon the employer, contract of service may be reduced to contract of slavery.” This case was not specifically about moonlighting but the court’s observation gives us an idea as to how the law may view such cases.
Way forward
- More earning: The Minister of State for Skill Development and Entrepreneurship, and Electronics and IT, said that employers should not to suppress employees who want to monetise, develop and demonstrate but also urged employees not to violate their agreements with employers.
- Working hours: Moonlighting is subject to law of the land. The sphere of employment cannot be extended by the employer beyond working hours and outside his place of employment.
- Socialistic view: The Courts of law in India dealing with employment are Writ Courts and Labour Courts, which exercise jurisdiction based on equity or fairness. Therefore, the Courts may lean in favour of the employee unless the contravention of the employee has led to serious prejudice and loss to the employer
Conclusion
- Employees are not the slaves of employers. What they do beyond the working hours is none of the business of employer unless it affects company financially or causes substantial damage to business. Government should bring the legal statute to regulate moonlighting and prevent the unjustified punishment of employees.
Mains Question
Q. What is moonlighting? Why employees do moonlighting? Discuss the legal framework about moonlighting in India.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CSR
Mains level: corporate governance
Context
- Since the establishment of the Corporate Social Responsibility (CSR) regime in India under Section 135 of the Companies Act 2013, CSR spending in India has risen from RS.10,065 crore in 2014-15to Rs.24,865crore in 2020-21.But there is no data to verify whether this increase is commensurate with the increase in profits of Indian and foreign (having a registered arm in India) companies.
What is Corporate Social Responsibility (CSR)?
- Voluntary spending: Corporate social responsibility (CSR) is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically oriented practices.
- Ministry Corporate Affairs: The National Corporate Social Responsibility Data Portal is an initiative by Ministry of Corporate Affairs, Government of India to establish a platform to disseminate Corporate Social Responsibility related data and information filed by the companies registered with it.
- Companies Act, 2013: The Corporate Social Responsibility concept in India is governed by Section 135 of the Companies Act, 2013 (‘Act’), Schedule VII of the Act and Companies (CSR Policy) Rules, 2014 wherein the criteria has been provided for assessing the CSR eligibility of a company, Implementation and Reporting of their CSR Policies.
- Sustainable Goals: India having the most elaborated CSR mechanism and implementation strategy has started its journey to set a benchmark in attaining sustainability goals and stakeholder activism in nation building.
- Corporate philanthropy: company donations to charity, including cash, goods, and services, sometimes via a corporate foundation.
- Community volunteering: company-organized volunteer activities, sometimes while an employee receives pay for pro-bono work on behalf of a non-profit organization
- Socially-responsible business practices: ethically produced products that appeal to a customer segment.
- Corporate social marketing: Company-funded behaviour-change campaigns, Company-funded advocacy campaigns, donations to charity based on product sales.
Why there is need to review the CSR?
- Declining number: There was also a decline in the number of companies participating in CSR 25,103 in FY2019 to 17,007 in FY2021.
- Flaw in the law: If a company spends an amount in excess of the minimum 2%, as stipulated, the excess amount is liable to be set off against spending in the succeeding three financial years. Ideally, companies should have been shown courage to spend more than this.
- Own trusts: many private companies have registered their own foundations/trusts to which they transfer the statutory CSR budgets for utilisation. It is unclear if this is allowed under the Companies Act/CSR rules.
- Geographical bias: The first proviso to Section 135(5) of the Act is that the company should give preference to local areas/areas around it where it operates. This is logical. However, a report by Ashoka University’s Centre for Social Impact and Philanthropy says that 54% of CSR companies are concentrated in Maharashtra, Tamil Nadu, Karnataka, and Gujarat(receiving the largest CSR spends) while populous Uttar Pradesh and Madhya Pradesh receive little.
- Spending on environment: Item (iv) of Schedule VII of the Act deals with broader environmental issues to create a countervailing effect. However, an analysis of CSR spending (2014-18)reveals that while most CSR spending is in education (37%) and health and sanitation (29%), only 9% was spent on the environment even as extractive industries such as mining function in an environmentally detrimental manner in several States
- Incomplete information: The Standing Committee on Finance had observed that the information regarding CSR spending by companies is insufficient and difficult to access. As per the ‘Technical Guide on Accounting’ issued by the Institute of Chartered Accountants of India, a company is only required to mention its CSR spends, non-spend, under-spend, and overspend in the ‘Notes to Accounts’.
What are the suggestions to improve the mechanism of CSR?
- Centralized platform: There is a need to curate a national level platform centralised by the MCA where all States could list their potential CSR admissible projects so that companies can assess where their CSR funds would be most impactful across India with, of course, preferential treatment to areas where they operate.
- India Investment Grid: Invest India’s ‘Corporate Social Responsibility Projects Repository’ on the India Investment Grid (IIG) can serve as a guide for such efforts. This model would be very useful for supporting deserving projects in the 112aspirational districts and projects identified by MPs under the Government’s Sansad AdarshGram Yojana.
- Increase environment spending: Companies need to prioritise environment restoration in the area where they operate, earmarking at least 25% for environment regeneration.
- Public participation: All CSR projects should be selected and implemented with the active involvement of communities, district administration and public representatives.
- Transparency: Recommendations by the high-level committee in 2018 should be incorporated in the current CSR framework to improve the existing monitoring and evaluation regime. These include strengthening the reporting mechanisms with enhanced disclosures concerning selection of projects, locations, implementing agencies, etc.; bringing CSR within the purview of statutory financial audit with details of CSR expenditure included in the financial statement of a company, and mandatory independent third party impact assessment audits.
- Monitoring by government: The MCA and the line departments need to exercise greater direct monitoring and supervision over CSR spend by companies through the line ministries (for public sector undertakings) and other industry associations(for non-public units) instead of merely hosting all information on the Ministry’s website.
Conclusion
- Corporate social responsibility is an effective tool to address the social and income inequality. Present legal arrangements are toothless and based on voluntary actions. For an effective change CSR spending should be made more transparent and accountable.
Mains Question.
Q.Present arrangement of CSR is not yielding the desired result. Enlist the current weakness in CSR spending Suggest the changes needed for efficient implantation of CSR.
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Context
- On August 8, India banned the exports of broken rice and imposed a 20 per cent duty on the exports of various grades of rice amid high cereal inflation and uncertainties with respect to domestic supply.
Background
- This is surely not the first time an attempt is being made to ban wheat and rice exports.
- It was also done in 2007-08, in the wake of the global financial crisis.
- Perhaps government will also impose stocking limits on traders for a host of commodities, suspend futures trading in food items, and even conduct income tax raids on traders of food.
What is the current status of rice in India?
- World’s largest rice exporter: India has exported more than 20 MT of rice worth a record $9. 6 billion to more than 150 countries in 2021-22.It has been the world’s largest rice exporter of the grain in the last decade and has a share of around 44% global trade.
- Likely to fall in production: India’s rice production is likely to decline by 6 per cent t to 104.99 million tonnes in the kharif season due to a fall in paddy acreage amidst rainfall deficit in key producing states, including Jharkhand, Madhya Pradesh and West Bengal.
- Kharif season: Sowing in the kharif season begins with the onset of the southwest monsoon from June and harvesting from October onwards .About 85 per cent of India’s total production comes from this season.
- Deficient rainfall: West Bengal, the biggest rice producer amongst states, has received deficient rainfall in 15 of its 23 districts, raising the likelihood of crop loss. Uttar Pradesh, the second biggest producer of rice has received 42% less rainfall than benchmark. The rainfall deficiency in the other eastern states Bihar (-34%) and Jharkhand (-48%).
- Depleting stocks: There are concerns about rice stocks with the Food Corporation of India (FCI) depleting to a 10-year low level by April, 2023 year, if the free ration scheme is extended to the second half of the financial year. The government may have to impose some curbs on rice exports though minimum export price or an export tax if the scheme is extended.
Why India’s rice export ban is cause for worry?
- Thin world rice market and the impact on prices: Given that 90 per cent of production is consumed domestically, As a result, any small change in exports and imports has an enormous impact on prices, especially if it leads to panic buying of food grains by rich countries.
- Limited Import option: The stakes are higher as it is India’s largest agricultural crop. Unlike with wheat, the options for import in rice due to any production shortfall are limited, when India’s own share in the global trade of the cereal is more than 40%.
- Affect the credibility: The export uncertainties will affect the credibility of Indian exporters, create a disincentive for future exports, and will enable buyers to shift towards other major rice-exporting countries.
- Affect a section of farmers: Though Indian farmers in general lack market access, and hence do not take advantage of high market prices, the fall in prices may adversely affect a section of farmers who hope to get a better price for their produce through exports. The exporters who face the burden of the unfeasibility of exports may pass it on to farmers in the form of lower prices during procurement.
- Affect low-income and low middle-income Countries: India’s export restrictions will adversely affect several low-income and low-middle-income countries like Bangladesh, Senegal, Nepal and Benin, which are among the largest importers of Indian rice.
- Domestic prices and to safeguard food security: Frequent changes in export policies undoubtedly have long-term ramifications on domestic prices
What are the Issues in India’s rice export strategy?
- Highest ever volume: India exported the highest-ever volume of 21 million metric tonnes (MMT) of rice in 2021-22 (FY22) in a global market of about 51.3 MMT, which amounts to about 41 per cent of global exports.
- Reduced price: Such large volumes of rice exports brought down global prices of rice by about 23 per cent in March (YoY), when all other cereal prices, be it wheat or maize, were going up substantially in global markets. In fact, in FY22, the unit value of exports of common rice was just $354/tonne, which was lower than the minimum support price (MSP) of rice.
- Below MSP buying or leakage from PMGKAY: This meant that rice exporters were either buying rice (paddy) from farmers and millersat below the MSP or that quite a substantial part of rice was given free under the PM Garib Kalyan Ann Yojana (PMGKAY) was being siphoned away for exports at prices below MSP.
- Artificial competitive advantage: Free electricity for irrigation in several states, most notably Punjab, and highly subsidised fertilisers, especially urea, create an artificial competitive advantage for Indian rice in global markets.
Problems with India’s rice cultivation
- Lower yield: India’s rice yield is lower than the world average. However, India’s yield is better than Thailand and Pakistan but worse than Vietnam, China and the US.
- Higher cost of cultivation and price support: The cost of cultivation in India is also increasing, and hence there will be a need for a higher MSP to make production remunerative. This will exacerbate the pressure to re-think its price-support-backed food security mechanism.
- Water-intensive nature: India’s rice production likely to fall amidst the shortfall of rainfall in major rice producing states and increasing salinity of soil because of over usage of water. The water-intensive nature of rice cultivation, along with frequent export restrictions will adversely affect the long-run sustainability of rice production. In India, around 49 per cent of rice cultivation depends on groundwater which is depleting rapidly.
What is the link between Rice cultivation and groundwater depletion?
- Ground water depletion: In India, around 49 per cent of rice cultivation depends on groundwater which is depleting rapidly.
- Food and Agriculture Organization (FAO) data: As per the latest data available from the Food and Agriculture Organization (FAO), agricultural water withdrawal as a percentage of total available renewable water resources has increased from 26.7 per cent in 1993 to 36 per cent in 2022.
- Virtual water trade (VWT): Rice exports are leading to an indirect export of water to other countries a phenomenon known as virtual water trade (VWT). The relative per capita water availability in India is lower than a majority of its major importing countries. The other major exporters of rice, such as Thailand and Vietnam, also have better per capita water availability in comparison to India.
- Renewable water resources: Out of 133 countries in which India has positive net rice exports, only 39 countries have relatively lower per capita renewable water resources. Out of these 39 countries, 12 countries are high-income countries with the ability to buy food at a higher price.
Conclusion
- Depletion of groundwater resources and rising cost of cultivation may threaten rice production in the future. Adequate water saving measures in the form of widespread adoption of water saving practices like System of Rice Intensification (SRI) need to be taken to keep input requirements, costs and production sustainable.
Mains question
Q.As many developing countries depend on Indian rice, rice export restrictions have raised food security concerns in the global market. In this context discuss the causes and effects of India’s restrictions on rice export.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Uighurs, Xinjiang
Mains level: HR abuses in China
The UN Human Rights Council has voted against holding a debate on alleged abuses in China’s Xinjiang region after intense lobbying by Beijing, in a major setback for Western nations.
What is the news?
- India and 10 other nations abstained.
Who are the Uighurs?
- There are about 12 million Uighurs, mostly Muslim, living in north-western China in the region of Xinjiang, officially known as the Xinjiang Uyghur Autonomous Region (XUAR).
- The Uighurs speak their own language, similar to Turkish, and see themselves as culturally and ethnically close to Central Asian nations.
- They make up less than half of the Xinjiang population.
- In recent decades, there’s been a mass migration of Han Chinese (China’s ethnic majority) to Xinjiang, and the Uighurs feel their culture and livelihoods are under threat.
- In the early 20th Century, the Uighurs briefly declared independence, but the region was brought under complete control of mainland China’s new Communist government in 1949.
Where is Xinjiang?
- Xinjiang lies in the north-west of China and is the country’s biggest region.
- Like Tibet, it is autonomous, meaning – in theory – it has some powers of self-governance. But in practice, both face major restrictions by the central government.
- It is a mostly desert region, producing about a fifth of the world’s cotton.
- It is also rich in oil and natural gas and because of its proximity to Central Asia and Europe is seen by Beijing as an important trade link.
What was the build-up to the Uighur crackdown?
- Anti-Han and separatist sentiment rose in Xinjiang from the 1990s, flaring into violence on occasion.
- In 2009 some 200 people died in clashes in Xinjiang, which the Chinese blamed on Uighurs who want their own state.
- Xinjiang is now covered by a pervasive network of surveillance, including police, checkpoints, and cameras that scan everything from number plates to individual faces.
- According to Human Rights Watch, police are also using a mobile app to monitor peoples’ behaviour, such as how much electricity they are using and how often they use their front door.
- Since 2017 when President Xi Jinping issued an order saying all religions in China should be Chinese in orientation, there have been further crackdowns.
Chinese narrative
- China says the crackdown is necessary to prevent terrorism and root out Islamist extremism and the camps are an effective tool for re-educating inmates in its fight against terrorism.
- It insists that Uighur militants are waging a violent campaign for an independent state by plotting bombings, sabotage and civic unrest.
- China has dismissed claims it is trying to reduce the Uighur population through mass sterilizations as “baseless”, and says allegations of forced labor are “completely fabricated”.
Why did India abstain from voting against China?
- India has traditionally voted against or abstained from such country-specific resolutions at the UNHRC.
- It is understood that China’s presence within the UNHRC was a factor in the decision since any backing for the Xinjiang issue could have led to similar moves by China on other issues in India.
- This is particularly in the context of the Kashmir issue.
Try this PYQ:
Q.Very recently, in which of the following countries have lakhs of people either suffered from severe famine/acute malnutrition or died due to starvation caused by war/ethnic conflicts?
(a) Angola and Zambia
(b) Morocco and Tunisia
(c) Venezuela and Colombia
(d) Yemen and South Sudan
Post your answers here.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NOPEC
Mains level: Global oil prices manipulation by OPEC
US legislation NOPEC which could open members of oil producing group OPEC+ to antitrust lawsuits has emerged as a possible tool to tackle high fuel prices.
What is NOPEC?
- NOPEC stands for No Oil Producing and Exporting Cartels (NOPEC).
- It is a bill to protect US consumers and businesses from engineered oil spikes.
- But some analysts warn that implementing it could also have some dangerous unintended consequences.
Why such a move by the US?
- OPEC+, which groups the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, agreed to steep production cuts, curbing supply in an already tight market.
- After the decision, the US decided to reduce the group’s control over energy prices.
Key feature of the NOPEC bill
- The bipartisan NOPEC bill would tweak US antitrust law to revoke the sovereign immunity that has protected OPEC+ members and their national oil companies from lawsuits.
- If signed into law, the US attorney general would gain the option to sue the oil cartel or its members, such as Saudi Arabia, in federal court.
- It is unclear exactly how a federal court could enforce judicial antitrust decisions against a foreign nation.
Is such bill effective?
- Previous versions of the NOPEC bill have failed amid resistance by oil industry groups, including the top US oil lobby groups.
- Saudi Arabia has rebuffed repeated lobbying during visits by Biden officials not to cut production.
- Instead, OPEC+ has agreed to cut output by the most since the start of the COVID-19 pandemic.
Implications of NOPEC
- NOPEC more or less is a knee-jerk reaction from the US against oil hegemony of the OPEC+.
- If passed into law, it could lead to unintended blowback.
- In 2019, for example, Saudi Arabia threatened to sell its oil in currencies other than the dollar if Washington passed a version of the NOPEC bill.
- There is a possibility that other countries could take similar action on the US for withholding agricultural output to support domestic farming, for example.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Vyommitra, Gaganyaan Mission
Mains level: Not Much
Vyommitra, the humanoid designed and developed by the ISRO to fly aboard unmanned test missions ahead of the Gaganyaan human space-flight mission, is undergoing pre-flight ground tests at the ISRO Inertial Systems Unit (IISU).
Vyommitra
- The AI-based robotic system is developed at a robotics lab at the Vikram Sarabhai Space Centre (VSSC) at Thumba, Thiruvananthapuram.
- Vyommitra will be used for an unmanned flight of ISRO’s GSLV III rocket in December 2020, which, along with a second unmanned flight in July 2021.
- This will serve as the test of ISRO’s preparedness for its maiden manned space mission, Gaganyaan, being targeted for 2022 to mark 75 years of India’s independence.
Functions of the humanoid
- Vyommitra, equipped with a head, two arms and a torso, is built to mimic crew activity inside the crew module of Gaganyaan.
- Attaining launch and orbital postures, responding to the environment, generating warnings, replacing carbon dioxide canisters, and operating switches, monitoring of the crew module, receiving voice commands, and responding via speech (bilingual) are among the functions listed.
- It will have a human-like face, with lips synchronized for movement to mimic speech.
- Once it is fully developed, Vyommitra will be able to use the equipment on board the spacecraft’s crew module, like safety mechanisms and switches, as well as receive and act on commands sent from ground stations.
What is the recent development?
- The IISU has successfully integrated it with a computer “brain”, which enables it to “read” control panels aboard the unmanned test flights and communicate with the ISRO ground stations.
- It has a certain level of intelligence.
- It is intended to operate and read the display panels and communicate back to ground station using its own voice.
Back2Basics: Gaganyaan Mission
- Gaganyaan is crewed orbital spacecraft intended to be the formative spacecraft of the Indian Human Spaceflight Programme (IHSP).
- The IHSP was initiated in 2007 by ISRO to develop the technology needed to launch crewed orbital spacecraft into low Earth orbit.
- ISRO had been working on related technologies and it performed a Crew Module Atmospheric Re-entry Experiment and a Pad Abort Test for the mission.
- If completed in meantime, India will become the fourth nation to conduct independent human spaceflight after Russia, US, and China.
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What is the Legal status of moonlighting?