Note4Students
From UPSC perspective, the following things are important :
Prelims level: Dam Safety Act
Mains level: Read the attached story
Central Idea
- India boasts nearly 6,000 large dams, but concerns loom over the safety of these structures, with approximately 80% of them being over 25 years old and posing safety risks.
- With numerous large dams and hydropower projects, the Himalayas play a crucial role in meeting India’s energy needs.
- However, the recent incident of a Glacial Lake Outburst Flood (GLOF) in North Sikkim has raised alarm bells about the safety of these structures.
Hydropower boom in the Himalayas
- As of November 2022, the Himalayan states and Union territories, excluding West Bengal, had 81 large hydropower projects (above 25 MW) in operation, with 26 more under construction.
- An additional 320 large projects are in the planning stages, according to the Central Electricity Authority under the Union Ministry of Power.
Discussion: Dam Safety in the Himalayas
- Vulnerability to Natural Hazards: The Himalayas are highly susceptible to natural hazards such as earthquakes, landslides, and GLOFs due to their complex geological and topographical features. These hazards can jeopardize the integrity of dams and reservoirs.
- High Population Density: The Himalayan region is densely populated, with communities residing downstream of dams and hydropower projects. A dam failure can have devastating consequences on human lives and property.
- Ecological Sensitivity: The Himalayas are an ecologically fragile region with unique biodiversity. A dam failure can lead to environmental disasters, impacting delicate ecosystems.
Repercussions
- Climate Change: The melting of glaciers due to global warming contributes to the formation of glacial lakes. As these lakes grow, the risk of GLOFs increases, putting downstream infrastructure at risk.
- Snowball Effects: Landslide dams can lead to impounding of lakes, landslide-induced floods, secondary landslides, channel avulsion, and the formation of flood terraces downstream, impacting communities and infrastructure.
- Delayed Impacts: Run-of-the-river projects, which often bypass large-scale displacement and forest diversion, have been promoted as environmentally friendly. However, their underground components can disturb geology and geohydrology, leading to indirect displacement and environmental impacts.
- Aging Infrastructure: Many dams and hydropower projects in the Himalayas are aging, with approximately 80% of them over 25 years old. Proper maintenance and monitoring are essential to ensure their safety.
Dam Safety Act, 2021 and its Provisions
- The DSA was introduced in response to dam failures caused by deficient surveillance and maintenance.
- It establishes key responsibilities and requires the formation of national and state-level bodies for its implementation.
- The Act outlines the following provisions:
- National Committee on Dam Safety: Responsible for overseeing dam safety policies and regulations.
- National Dam Safety Authority: Tasked with implementing and resolving state-level disputes.
- Chairman of the Central Water Commission (CWC): Heads dam safety protocols at the national level.
- State Committee on Dam Safety (SCDS) and State Dam Safety Organisation (SDSO): To be established at the state level.
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Challenges in DSA Implementation
- Inadequate Risk Assessment: Experts argue that the DSA does not encourage risk-based decision-making and lacks transparency incentives.
- Transparency Concerns: Dam safety should be a public function, with information readily accessible. However, transparency is impeded when government employees and project engineers dominate national and state bodies, potentially compromising objective decision-making.
Lessons Learned from Recent Incidents
- Comprehensive Risk Assessment: Dam safety protocols must include comprehensive risk assessments that consider factors such as climate change, geological stability, and the potential for GLOFs. Periodic reviews yield updated inundation maps and rule curves for reservoir capacity.
- Hazard Profiling Issues: Hazard risk is influenced by climate change, urbanization, and water usage patterns. Periodic reviews should yield updated inundation maps and rule curves for reservoir capacity. Unfortunately, these reviews are often overlooked or findings are not made publicly available.
- Standardized Safety Evaluation: The DSA mandates comprehensive dam safety evaluations but lacks standardization in how failures are analyzed and reported.
- Transparent Reporting: Transparency in dam safety is paramount. The DSA should be implemented rigorously, with an emphasis on transparent reporting of dam failures and safety assessments.
- Community Involvement: Local communities should be actively engaged in dam safety measures. They can provide valuable insights into the environmental and social impacts of such projects.
Way Forward
- Early Warning Systems: Establishing advanced early warning systems that can detect GLOFs and other potential hazards is crucial. These systems can save lives and minimize damage.
- Regular Maintenance: Aging infrastructure must undergo regular maintenance and upgrades to ensure their continued safety and functionality.
- International Collaboration: Given the transboundary nature of the Himalayan region, international collaboration on dam safety and disaster management is essential. Neighboring countries should work together to mitigate shared risks.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Leniency Plus Norms
Mains level: NA
Central Idea
- The Competition Commission of India (CCI) has unveiled a draft of revised lesser penalty regulations, introducing a groundbreaking “Leniency Plus” Norms and shedding light on its strategy for combating cartels.
About Competition Commission of India (CCI)
- The CCI is the chief national competition regulator in India.
- It is a statutory body within the Ministry of Corporate Affairs.
- It is responsible for enforcing The Competition Act, 2002 in order to promote competition and prevent activities that have an appreciable adverse effect on competition in India.
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Understanding “Leniency Plus”
- Existing Leniency Program: Under the current Competition Act 2002, a leniency program allows companies to receive partial immunity from penalties if they provide substantial information about their involvement in a cartel. This aids competition authorities in uncovering secret cartels and obtaining insider evidence.
- Additional Reduction in Penalty: In the “Leniency Plus” framework, a cartel member cooperating with CCI for leniency can disclose the existence of another unrelated cartel during the original leniency proceedings. In return, they receive an additional reduction in penalties.
- Incentivizing Disclosure: “Leniency Plus” serves as a proactive antitrust enforcement strategy, encouraging companies already under investigation for one cartel to report other undisclosed cartels, thus promoting transparency.
Legal foundation
- Legal basis: The “Leniency Plus” regime was incorporated into the Competition (Amendment) Act 2023, which received Presidential approval in April of the same year.
- Global Adoption: The concept of “Leniency Plus” is not new, as it is already recognized and practised in jurisdictions like the UK, US, Singapore, and Brazil.
- Encouraging Disclosure: One of the key aspects of these regulations is their encouragement for companies already under investigation for one cartel to report other undisclosed cartels to the competition regulator.
Tap to read more about Cartelization!
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Election Symbols
Mains level: Read the attached story
Central Idea
- A recent Supreme Court decision declining a plea by a political party in Telangana, questioning the allocation of election symbols, has thrown the spotlight on the intriguing world of political symbols in India.
- This article delves into the process of symbol allocation and its role in shaping the country’s political landscape.
Symbols Allocation Authority: ECI
- The ECI is responsible for allocating symbols to political parties, following guidelines laid out in The Election Symbols (Reservation and Allotment) Order, 1968.
- This order aims to regulate symbol specification, reservation, choice, and allotment during elections.
Types of Election Symbols
- Reserved and Free Symbols: Symbols can be either reserved, exclusively assigned to recognized political parties, or ‘free’ symbols that can be chosen by unrecognised registered parties’ candidates. Unrecognized parties are those that haven’t met the criteria for state party recognition.
- Exclusive Symbols: Recognized national and state parties are granted exclusive symbols, signifying their established status.
Symbol Selection by Parties
- Preference Lists: Unrecognized parties provide a list of ten preferred symbols from the free symbol pool.
- Proposal of New Symbols: Parties can propose up to three new symbols for consideration, provided they do not resemble reserved or free symbols, carry religious or communal connotations, or depict birds or animals.
- Common Symbol Assignment: The ECI may allot a proposed symbol as a common symbol for the party if it deems it suitable.
Historical Origins of Symbols
- Sketching Process: Symbols were initially sketched by MS Sethi, who retired from the ECI in 1992. These symbols were conceived through brainstorming sessions where the goal was to identify objects that the common man could relate to.
- Birth of Familiar Symbols: Many iconic symbols such as the bicycle, elephant, and broom originated from these sessions.
- Unconventional Entries: Some lesser-known symbols like a pair of glasses, a nail cutter, and a neck-tie were also suggested, reflecting the diversity of ideas.
- Modern Additions: Over time, new symbols like a bowl of noodles and a mobile charger have been included in the symbol list, reflecting contemporary times.
Political Parties’ Say
- Preference Submission: Unregistered parties submit their symbol preferences from the list of free symbols.
- Proposal of New Symbols: Parties can suggest up to three new symbols with clear designs and drawings.
- Criteria for Approval: Proposed symbols must not resemble existing reserved or free symbols, possess religious or communal connotations, or depict birds or animals.
Symbol Allocation in Split Parties
- Decision by ECI: When recognized political parties split, the ECI determines the symbol assignment. For example, the Congress party’s symbol evolved from a pair of bulls to the current hand symbol due to splits.
- Recent Example: The ECI assigned different symbols to factions of the Shiv Sena, allowing one faction to retain the bow and arrow symbol while allotting a flaming torch to the other.
Conclusion
- The allocation of election symbols in India is a meticulous process governed by the ECI’s guidelines.
- These symbols hold profound significance in political campaigns, representing parties’ identities and ideologies.
- Understanding the history and intricacies of symbol allocation provides valuable insights into India’s dynamic political landscape.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Forex Swap
Mains level: Not Much
Central Idea
- As a $5 billion forex swap between the Reserve Bank of India (RBI) and banks approaches maturity, it signifies the central bank’s strategic move to manage liquidity and mitigate inflationary pressures.
What is RBI’s Forex Swap?
- Forex Tool: The Dollar–Rupee Swap is a forex tool employed by the RBI to exchange its currency with banks for another currency.
- Buy/Sell Swap: It involves two variants: Dollar–Rupee Buy/Sell Swap, where the RBI buys dollars from banks in exchange for Indian Rupees, and then commits to selling the dollars back at a later date.
- Sell/Buy Swap: Conversely, the RBI may sell dollars, thereby withdrawing an equivalent sum in rupees, reducing liquidity in the financial system.
- Risk Mitigation: These swap operations are characterized by predetermined transaction terms, eliminating exchange rate and market risks.
The Strategy behind
- USD 5 Billion Swap: The RBI initiated a USD 5.135 billion swap with banks and aims to repurchase the dollars at the lowest possible premium after a two-year tenor.
- Lower Range Bids: Banks bidding at the lower end of the premium range are more likely to succeed in the auction.
Rationale for RBI’s Action
- Surplus Liquidity: The Indian financial system currently experiences surplus liquidity, amounting to Rs 7.5 lakh crore, necessitating measures to curb potential inflation.
- Traditional Tools: Traditional methods like increasing the repo rate or Cash Reserve Ratio (CRR) can negatively impact the economy and may not lead to complete transmission of monetary policy.
- Previous Toolkit: The RBI used Variable Rate Reverse Repo Auction (VRRR) but encountered under-subscription due to better yields in the cash market.
- Longer-Term Strategy: As a result, the RBI opted for forex auctions as a longer-term liquidity adjustment tool.
Impact of the Swap
- Liquidity Reduction: The primary effect is the reduction of liquidity, which currently stands at an average of Rs 7.6 lakh crore.
- Strengthening Rupee: Increased dollar inflow will strengthen the Indian Rupee, which has already appreciated against the US dollar.
- Inflation Control: The RBI typically tightens liquidity when inflation risks are elevated. Factors contributing to inflation include rising oil prices due to the Russia-Ukraine conflict and foreign portfolio investors withdrawing funds from Indian stocks.
Conclusion
- The RBI’s forex swap strategy emerges as a strategic tool to manage liquidity, stabilize the currency, and control inflationary pressures.
- By reducing system liquidity and strengthening the rupee, the central bank aims to navigate the challenges posed by global events and ensure economic stability in India.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Paris Pact for People and the Planet
Mains level: Paris Pact for People and the Planet, private-sector funding and India's Role in the Global Sustainable Financial Landscape
What’s the news?
- The Paris Pact for People and the Planet signifies a milestone in the global commitment to sustainable development.
Central idea
- June saw more than 100 countries converge in Paris with a shared vision: no nation should be torn between combating poverty and preserving the planet. This led to the establishment of the Paris Pact for People and the Planet, crafted with invaluable insights from India.
A Transformative Shift in Global Investments
- The debate around developed countries’ commitment to furnishing USD 100 billion a year for climate finance from 2020 to 2025 has been heated.
- The target is set to be achieved by 2023.
- France surpassed its share, contributing €7.6 billion in 2022 for climate financing.
- Since 2012, the French Development Agency has invested over €2 billion in India for sustainable ventures.
India’s Role in the Global Sustainable Financial Landscape
- Leadership in Global Forums: India co-chaired the summit for the Paris Pact for People and the Planet.
- Collaboration with France: India and France jointly act to bridge global financial divides.
- G20 Presidency: India led significant progress in sustainable finance discussions under its G20 Presidency.
- Regional Debt Management: India collaborated with the Paris Club for debt restructuring in Sri Lanka.
- Championing Cohesion: India, with France, emphasizes unity and cooperation in the global financial landscape.
Debt Challenges in Developing Nations
- Public Sector Limitations: Public sector financing is not enough to address global challenges.
- Regulatory Impacts: Post-2008 financial regulations may hinder the flow of OECD savings towards non-OECD countries.
- Green Finance Framework: Misunderstandings between developed and developing countries on aligning finance with the Paris Agreement’s objectives
- Debt Vulnerabilities: Many low- and middle-income countries are on unsustainable debt trajectories.
Proposed actions to unlock more private-sector funding
- Reviewing Global Climate Funds: Start an in-depth analysis of global vertical climate funds to make better use of resources and encourage greater cooperation among climate finance ecosystem stakeholders.
- Expanding the Green Finance Framework: Further develop the green finance framework to align the financial sector with the objectives of the Paris Agreement. This entails leveraging private finance to support low-carbon and resilient pathways worldwide, using mitigation costs as a guiding principle.
- Promoting Just Energy Transition Partnerships: Encourage country-led, multi-actor partnerships, such as the Just Energy Transition Partnerships already operational in countries like Indonesia, Vietnam, South Africa, and Senegal, to attract investments for phasing out coal from electricity production.
- Engaging Credit Rating Agencies: Include credit-rating agencies in the reform agenda of multilateral development banks (MDBs) to ensure that these institutions are not penalized due to reforms aimed at enhancing their effectiveness. Rating agencies should consider innovative blended finance schemes and data on defaults, revealing the resilience of projects with multilateral guarantees.
Conclusion
- The global community, with India at its helm, is making strides towards reshaping the financial landscape in favor of sustainable development. Harnessing both the public and private sectors, and with partnerships like the non-French collaboration, there’s hope for a balanced planet where poverty alleviation and environmental preservation coexist.
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