Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Coal Index
Mains level: NA
Central Idea
- In a recent development, the National Coal Index (NCI) saw a substantial rise in September, marking its first increase since April 2023.
- This surge in the NCI is linked to global coal price fluctuations and holds significant implications for India’s coal sector.
Understanding the National Coal Index (NCI)
- What is it? The NCI is a price index which reflects the change in the price level of coal on a particular month relative to the fixed base year.
- Release: It is released every month by the Ministry of Coal.
- Launch: The NCI was introduced on June 4, 2020, as a tool to monitor coal price fluctuations relative to a fixed base year FY 2017-18.
- Price Indicator: The NCI serves as a crucial price indicator that combines coal prices from various sources, including notified prices, auction prices, and import prices.
- Basis for Premiums: It plays a vital role in determining premium rates, either on a per-tonne basis or through revenue sharing, using a market-based approach.
Components of NCI
- Sub-Indices: NCI comprises five distinct sub-indices, encompassing three for Non-Coking Coal and two for Coking Coal. These sub-indices are amalgamated to derive the final Index for Non-Coking and Coking Coal, making them distinctly separate.
- Customized Revenue Shares: Based on the coal grade associated with a mine, the relevant sub-index is employed to determine the revenue share.
Factors behind the NCI Surge
- Global Price Impact: The recent uptick in the NCI is primarily influenced by a temporary rise in global coal prices, which has reverberated in the Indian coal market.
- Seasonal Demand: With the festive season and winter approaching in India, the demand for coal has risen, prompting coal producers to boost domestic production to meet the growing energy needs.
- Power Sector Growth: India has experienced a surge in coal demand, particularly from the power sector, driven by increased electricity requirements.
- Continued Coal Imports: Power plants have continued to import coal as part of the coal blending mandate set by the power ministry.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Stable Aurora Arc
Mains level: NA
Central Idea
- Recently, the Indian Astronomical Observatory (IAO) in Ladakh has astounded the world with mesmerizing images of a rare red-colored aurora, known as a Stable Auroral Arc (SAR).
What is Stable Auroral Arc (SAR)?
- Rare Phenomenon: SAR is a unique atmospheric occurrence witnessed during a potent G3-class geomagnetic storm.
- Unconventional Origins: Unlike typical auroras resulting from space borne charged particles colliding with the atmosphere, SAR arcs have a distinct genesis.
- Sign of Energy Flow: SAR arcs signify the transfer of heat energy into the upper atmosphere from Earth’s ring current system, a circular pathway carrying massive electrical currents encircling our planet.
- Geomagnetic Storm Influence: During the recent geomagnetic storm, the ring current was dynamically charged due to prolonged intense geomagnetic activity, leading to the manifestation of SAR arcs.
- Global Impact: This celestial event left its celestial mark across several regions worldwide.
How is it formed?
- Solar Wind Interaction: Aurora formation begins when the sun emits charged particles from its corona, creating solar wind. Upon colliding with Earth’s ionosphere, the mesmerizing aurora takes shape.
- Northern and Southern Counterparts: In the Northern Hemisphere, it’s recognized as the northern lights (aurora borealis), while in the Southern Hemisphere, it’s referred to as the southern lights (aurora australis).
- Magnetic Dance: The varying appearance of auroras in different hemispheres is attributed, in part, to the intricate interplay between the sun’s magnetic field and Earth’s magnetic field.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Contributory Pension Scheme
Mains level: Read the attached story
Central Idea
- A report on Kerala’s contributory pension scheme (introduced in 2013) has been released after a recent Supreme Court verdict.
- This scheme, introduced in 2013, has sparked a debate due to its financial impact on the state.
- Let’s take a closer look at the National Pension System (NPS), Kerala’s pension scenario, and the findings of the review committee report.
NPS: A Quick Recap
- What is NPS? The National Pension System (NPS) is a contributory pension scheme initiated by the Indian government in 2004, extending to various states, including Kerala.
- How It Works: Under NPS, a fund is built from contributions made by employees and employers during their employment. Unlike the previous pension scheme funded by the government, NPS involves purchasing an annuity scheme at retirement, providing the pensioner with an annuity.
Kerala’s Pension Scenario
- Pension Challenges: Kerala faces rising pension liabilities, mainly due to a high life expectancy post-retirement and an increasing number of employees enrolled in NPS.
- Budget Impact: The state allocates a significant portion of its budget to committed expenditure, including salaries, pensions, and interest payments. Pension accounts for 21% of this expenditure.
- Contributions: Employees who joined after April 2013 contribute 10% of their salary (including dearness allowance) to the NPS corpus.
The Review Committee Report
- No Revocation Recommended: The review committee did not recommend scrapping the NPS, stating it was legally sound.
- Alternative Recommendations: It suggested raising the state government’s contribution from 10% to 14% and including dearness allowance at 14%. The report also proposed allowing death-cum-retirement gratuity for NPS subscribers.
Why the Report Supports NPS?
- Long-Term Perspective: The committee viewed pension matters from a long-term perspective, stating that continuing NPS would eventually reduce pension outgo as a share of the state’s GDP.
- Reducing Revenue Deficit: As pension outgo decreases, the share of revenue deficit also falls, freeing up resources for capital spending and social services.
Arguments against NPS in Kerala
- Low Annuities: Retirees under NPS have reported receiving meager annuities compared to the old pension scheme.
- Market Risks: Concerns exist about the impact of stock market crashes on NPS investments, as contributions are invested in various assets.
- Demand for Reintroduction: Some states have reintroduced statutory pension schemes due to employee demand.
Conclusion
- The review report favors retaining NPS in Kerala, emphasizing its long-term financial benefits.
- However, concerns about low annuities and market risks persist, prompting some states to consider returning to the old pension scheme.
- The debate over Kerala’s contributory pension scheme continues amid financial and welfare considerations.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Guidelines for Speedy Disposal of Cases against Lawmakers
Central Idea
- The Supreme Court has issued guidelines to ensure the quick resolution of criminal cases involving Members of Parliament (MPs) and Members of Legislative Assemblies (MLAs) across India.
- These guidelines aim to address the long-pending issue of lawmakers facing criminal charges.
Background
- Advocate’s Plea: These directions were issued in response to a plea filed by advocate Ashwini Kumar Upadhyay in August 2016.
- Key Demands: Upadhyay’s plea sought the swift handling of cases involving legislators and a lifetime ban on convicted politicians, including those currently in office, instead of the existing six-year disqualification mentioned in Section 8(3) of the Representation of People Act, 1951.
Understanding the Representation of People Act (RPA), 1951
- Purpose: The RPA, 1951, introduced by Dr. BR Ambedkar, governs the conduct of elections to India’s parliament and state legislatures.
- Content: It covers various aspects, including qualifications and disqualifications for membership, corrupt practices, and offenses related to elections.
- Section 8: Section 8 of the RPA deals specifically with the disqualification of legislators on conviction for certain offenses, such as promoting enmity between groups, bribery, undue influence, and offenses related to hoarding, profiteering, or adulteration of food or drugs.
- Section 8(3): This subsection states that a person convicted of an offense and sentenced to imprisonment for at least two years will be disqualified from the date of conviction and continue to be disqualified for an additional six years after release. In essence, it imposes a six-year disqualification on individuals convicted of offenses with a minimum two-year prison sentence.
Supreme Court’s Ruling
- Guidelines for Speedy Disposal: The Supreme Court, led by CJI DY Chandrachud, laid down guidelines for the prompt resolution of pending criminal cases against lawmakers.
- Suo Motu Cases: High courts across India are directed to establish a “special bench” to oversee criminal cases involving legislators. High courts can also register such cases on their own initiative.
- Flexible Approach: The court allows the chief justices of high courts to hear these cases or designate specific benches for this purpose. These cases may be listed regularly if needed, and the special bench can seek assistance from the advocate general or prosecutor.
- High Court Role: To efficiently manage these cases, the Supreme Court leaves it to high courts to devise suitable measures.
- Priority Cases: The court emphasizes prioritizing cases against lawmakers that carry the possibility of death or life imprisonment. Cases with sentences of five years or more are also given priority.
- HC’s Authority: High courts are empowered to issue similar orders and directions for effective case disposal. They can involve the Principal District and Sessions Judge in allocating cases to appropriate courts.
Conclusion
- The Supreme Court’s guidelines are aimed at expediting the resolution of criminal cases against MPs and MLAs and ensuring justice is served promptly.
- While these guidelines address the issue of speedy disposal, the larger question of replacing the six-year disqualification with a lifetime ban remains open for future consideration.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Election Expenditure in India
Mains level: Read the attached story
Central Idea
- Campaign financing plays a pivotal role in democratic societies, yet the approach to regulating it must be tailored to the nuances of each country’s political system.
- As exemplified by the United States and India, where political dynamics vary significantly, it is imperative to adopt a framework that aligns with the prevailing political landscape.
Tap to read more about Ceiling on Election Expenditures in India
https://www.civilsdaily.com/news/election-campaign-funding-by-political-parties/ |
Understanding Political Systems:
- US Individual-Centric Elections: In the United States, elections revolve around individual candidates and their campaign machinery, even at the national presidential level.
- India’s Party-Centric Politics: Conversely, India, akin to most parliamentary systems, places political parties at the core of electoral politics. Therefore, India’s campaign finance framework should primarily focus on parties rather than individual candidates.
Key Aspects of an Effective Framework:
A comprehensive campaign finance framework necessitates attention to four critical facets: regulating donations, imposing expenditure limits, public financing, and disclosure requirements.
(A) Donations:
- Regulation and Limitation: To prevent undue influence, some individuals or organizations, such as foreign entities, may be prohibited from making contributions.
- Donation Limits: Donation limits are crucial to thwart the dominance of a few major donors, be they individuals, corporations, or civil society organizations. For instance, the US employs varying contribution limits based on donor types, while the UK relies on expenditure limits.
(B) Expenditure Limits:
- Balancing Political Competitiveness: Expenditure limits serve as a bulwark against a financial arms race among political parties, allowing them to focus on winning votes rather than fundraising.
- Examples: In the UK, political parties are restricted from spending more than £30,000 per contested seat. However, the US’s expansive interpretation of the First Amendment has hindered efforts to impose expenditure limits.
(C) Public Financing:
- Two Approaches: Public funding can be allocated based on predetermined criteria, like Germany’s system that considers past votes, membership fees, and private donations. Alternatively, democracy vouchers, as seen in Seattle, USA, allow voters to allocate public funds to candidates of their choice.
- Challenge: Public funding may complement private donations but does not fully address the task of regulating private money.
(D) Disclosure Requirements:
- Balancing Transparency and Anonymity: Disclosure nudges voters away from electing politicians involved in quid pro quo arrangements. However, mandatory disclosure isn’t always desirable, as it may deter donations by exposing donors to retaliation.
- Anonymity’s Role: Anonymity can protect donors from retribution or extortion. Striking a balance between transparency and anonymity is a challenge faced by many jurisdictions.
Chilean Experiment: Complete Anonymity?
- Chile’s “Reserved Contributions”: Chile’s system aimed at “complete anonymity” allowed donors to contribute to political parties via the Electoral Service, which forwarded the sum without revealing the donor’s identity.
- Coordination Challenges: Despite the intent for complete anonymity, coordination between donors and parties compromised the system’s efficacy.
Balancing Transparency and Anonymity in Political Finance
- An Effective Approach: Many jurisdictions strike a balance by allowing anonymity for small donors while mandating disclosure for large donations.
- Examples: In the UK, political parties must report donations exceeding £7,500 in a year, while the US and Germany set limits at $200 and €10,000, respectively.
- Rationale: Small donors typically have less influence and are more vulnerable to partisan victimization, while large donors may engage in quid pro quo arrangements.
Challenges in India’s Framework
- Lack of Donation Limits: India has no limits on individual or corporate contributions, and the 2017 Finance Act removed official contribution limits.
- Expenditure Limits: Parties can spend freely, albeit not on individual candidates.
- Disclosure Requirements: Parties are only obligated to disclose donations exceeding ₹20,000, creating a loophole as they split large donations into smaller amounts.
- Electoral Bonds: Since 2017, electoral bonds have allowed large donors to hide their contributions.
Changing Dynamics in Indian Politics
- Involvement of Third Parties: India has witnessed a surge in the engagement of political consultancies, campaign groups, and civil society organizations in political campaigns, mirroring trends seen in the US.
- Need for Rethinking: The evolving political landscape necessitates a reevaluation of India’s 20th-century political funding framework.
Conclusion
- Crafting a campaign finance framework requires an astute understanding of a nation’s political system and its nuances.
- By adapting strategies that regulate donations, impose expenditure limits, facilitate public financing, and balance transparency with anonymity, countries like India can ensure that their campaign finance frameworks evolve to meet the challenges of the modern political landscape.
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Central idea
Delhi grapples with severe smog, prompting emergency measures to curb pollution, including restricting vehicles. Despite past efforts to mitigate vehicular emissions, the city faces challenges in reducing dependence on personal vehicles. The article emphasizes the need for stronger political will, effective restraints, and enhanced public transport to address the persistent air quality and mobility crisis in Delhi.
Key Highlights:
- Delhi faces severe smog, prompting emergency measures to curb pollution, including restrictions on vehicles.
- Vehicles contribute significantly to Delhi’s air pollution, with official data indicating a 40% emission of particulate load.
- Despite previous efforts, vehicular emissions remain challenging to mitigate, with over 80 lakh on-road vehicles in Delhi.
Challenges:
- Cumulative emissions from increasing vehicle numbers and congestion undermine emission improvements per unit.
- Personal automobile dependence persists, with a 47% growth in car numbers during 2022-23.
- The shift to public transport is hindered by inadequate infrastructure, low passenger numbers per bus, and a lack of effective restraints on personal vehicle usage.
Key Phrases:
- “Crippling mobility crisis” in Delhi due to emergency measures restricting vehicles.
- “Gut reaction” to underplay the role of vehicles in air pollution amid public criticism.
Analysis: The article underscores the persistent challenge of vehicular emissions in Delhi, despite past efforts to curb pollution. It highlights the need for a substantial shift to public transport to address the mobility crisis and reduce dependence on personal vehicles.
Key Data:
- Over 80 lakh on-road vehicles in Delhi, with car numbers witnessing a 47% growth in 2022-23.
- Transport diesel consumption reduced by 46% between 2014 and 2022.
- Only 7,041 buses against the mandated 10,000, with a 48% drop in passengers carried per bus since 2017-18.
Key Facts:
- Despite emission improvements, Delhi’s air quality remains a concern, leading to emergency measures.
- Public transport ridership faces challenges, with a drop in passengers per bus and increased empty kilometres.
- The article emphasizes the need for stronger political will to restrain personal vehicle usage and promote public transport.
Way Forward:
- Strengthen political will to implement effective restraints on personal vehicle usage, such as parking rules and congestion pricing.
- Focus on making integrated public transport more convenient, accessible, and affordable.
- Implement scalable solutions, including a dense street network for walking and cycling, and housing closer to transit nodes.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Schemes and facts
Mains level: Evaluation of schemes
Central idea
The article scrutinizes various Union government welfare schemes, citing issues in health insurance, education, water mission, nutrition, financial inclusion, and minority scholarships. It urges corrective measures to rectify identified challenges, emphasizing the reassessment of budget allocations for improved transparency and program efficacy.
Key Highlights:
- Critique of BJP’s welfare schemes, questioning their effectiveness and highlighting discrepancies.
- Examination of schemes like Ayushman Bharat, Beti Bachao Beti Padhao, Jal Jeevan Mission, PM POSHAN, Jan Dhan Yojana, and Minority Scholarships.
- Mention of the Comptroller and Auditor General (CAG) report exposing issues in Ayushman Bharat, including fraudulent practices.
- Emphasis on the allocation and utilization of funds in schemes like Beti Bachao Beti Padhao and PM POSHAN.
- Challenges in the implementation of Jal Jeevan Mission, particularly the slow progress in providing functional tap connections.
- Criticism of the decrease in allocation for PM POSHAN despite the persisting issue of child malnutrition.
- Statistics revealing issues in Jan Dhan Yojana, including a high percentage of zero-balance accounts and decreased claim settlements.
Key Phrases for mains marks enhancement:
- “Hype than substance” in describing BJP’s welfare schemes.
- “Glaring discrepancies” in the Ayushman Bharat scheme, as highlighted by CAG.
- “Measly budget allocation” for Beti Bachao Beti Padhao and structural barriers to girls’ education.
- “Certified” villages under Jal Jeevan Mission and the slow progress in providing tap connections.
- “Decrease in allocation” for PM POSHAN despite the prevalence of child malnutrition.
- “Zero balance accounts” and “dormant or inoperative” Jan Dhan accounts.
- “Discontinuation” and “reduction of funding” for Minority Scholarships, impacting educational opportunities.
Analysis:
The article critically examines several welfare schemes launched by the BJP government, questioning their impact and effectiveness. It highlights discrepancies in implementation, allocation, and utilization of funds in schemes related to healthcare, education, water supply, nutrition, and financial inclusion. The analysis draws attention to issues such as fraudulent practices, slow progress in achieving objectives, and reductions in budget allocations despite persistent challenges.
Key Data:
- 5 lakh beneficiaries linked with a single cell phone number in Ayushman Bharat.
- 80% of Beti Bachao Beti Padhao funds spent on media campaigns.
- Only 35% of villages under Jal Jeevan Mission certified for providing drinking water.
- Rs 11,600 crore allocation for PM POSHAN in 2023, a 9% decrease from the previous year.
- Over 8% of Jan Dhan accounts as zero balance, and 18% either dormant or inoperative.
- Discontinuation of the Maulana Azad Fellowship scheme and reduction of funds for Minority Scholarships.
Ayushman Bharat:
- Challenges: Glaring discrepancies highlighted by the CAG, including fraudulent practices and data manipulation.
- Analysis: The scheme faces credibility issues due to these discrepancies, raising questions about its transparency and effectiveness.
- Way Forward: Implement corrective measures based on the CAG report findings to ensure transparency and accountability.
Beti Bachao Beti Padhao:
- Challenges: Heavy spending on media campaigns (80%), structural barriers hindering girls’ education.
- Analysis: Allocation concerns and structural barriers indicate shortcomings in achieving the scheme’s objectives.
- Way Forward: Reevaluate budget allocations, focusing on direct implementation and addressing barriers to girls’ education.
Jal Jeevan Mission:
- Challenges: Slow progress in providing functional tap connections, only 35% of villages certified.
- Analysis: Concerns about achieving objectives by the 2024 deadline due to slow progress and incomplete certifications.
- Way Forward: Intensify efforts to expedite tap connections and ensure the certification of remaining villages.
PM POSHAN:
- Challenges: Decreased budget allocation (9% reduction), persisting child malnutrition issues.
- Analysis: Despite the prevalence of child malnutrition, reduced funding raises concerns about the scheme’s impact.
- Way Forward: Reconsider budget decisions to align with the magnitude of challenges and enhance the effectiveness of nutritional interventions.
Jan Dhan Yojana:
- Challenges: High percentage of zero-balance accounts (8%) and decreased claim settlements.
- Analysis: Issues with inactive accounts and declining claim settlements indicate challenges in the scheme’s implementation.
- Way Forward: Enhance outreach and awareness programs to ensure the effective utilization of financial inclusion schemes.
Minority Scholarships:
- Challenges: Discontinuation of Maulana Azad Fellowship, reduction of funds for educational opportunities.
- Analysis: Discontinuation and reduced funding impact educational opportunities for minorities.
- Way Forward: Reconsider decisions to discontinue or reduce funding, supporting educational opportunities for minorities.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Statistical data
Mains level: Growth sectors
Central idea
India’s robust economic growth faces challenges in digital inclusion, governance equity, and managing post-COVID-19 effects. Government initiatives, encompassing reforms, infrastructure focus, and poverty alleviation, drive progress. Recognizing successes and addressing shortcomings is vital for informed public discourse and sustained development momentum.
Key Highlights:
- Impressive Economic Growth: India’s post-COVID-19 economic growth is remarkable, with FY2023 showing a YoY growth of 7.2%, the fastest among major economies.
- Policy Reforms Driving Growth: Government initiatives, including economic liberalization, Insolvency and Bankruptcy Code (IBC), demonetization, GST, and corporate tax reduction, have propelled India’s economic trajectory.
- Inclusive Growth Focus: The government’s commitment to “Sabka Saath Sabka Vikas” reflects in poverty alleviation, rural welfare, and inclusive growth measures, leading to improved living standards.
- Multidimensional Poverty Reduction: NITI Aayog’s report indicates a significant reduction in multidimensional poverty, with 13.5 crore Indians escaping poverty between 2015-16 and 2019-21.
- Agricultural Success: Support for agriculture has resulted in unprecedented growth in fruits, vegetables, dairy, livestock, and fishery, enhancing the nutritional value of the food basket.
Challenges:
- Critique of Growth Metrics: Some critics argue for using compound annual growth rates post-COVID-19, questioning the validity of YoY growth rates as a true measure of economic progress.
- Long Road to High-Income Status: Acknowledging the challenges, India recognizes the need for sustained efforts to achieve high-income status and a high quality of life for its citizens.
Key Phrases for mains value addition:
- “Fastest-growing major economy”: The tagline emphasizes India’s rapid economic growth in the global context, driven by its large size and robust domestic demand.
- “Sabka Saath Sabka Vikas”: The government’s inclusive growth mantra focusing on uplifting people above the poverty line through various support initiatives.
- “Multidimensional Poverty”: NITI Aayog’s report highlights a significant decline in multidimensional poverty, reflecting comprehensive progress.
Analysis:
The article underscores the importance of considering YoY growth rates as a measure of post-pandemic progress and highlights the success of government reforms in driving economic growth and inclusive development.
Key Facts/Data for value addition:
- India is the fifth largest economy globally and projected to become the third largest by 2027.
- The Capex budget of the central government has risen from 1.6% of GDP in FY19 to 2.7% in FY23, further budgeted to increase to 3.3% in FY24.
Government Measures Since 2014:
- Government initiatives post-2014 aim to boost the economy, including liberalization, the Insolvency and Bankruptcy Code, demonetization, GST rollout, and corporate tax reduction.
- In FY22, a substantial Capex program and state-level resource support aimed to bridge infrastructure gaps and attract private corporate investment.
Poverty Alleviation and Rural Welfare:
- Government commitment to ‘Sabka Saath Sabka Vikas’ reflects a focus on inclusive growth, poverty reduction, skill development, and infrastructure enhancement.
- NITI Aayog’s report highlights a significant reduction in multidimensional poverty, particularly in rural areas, with improved living standards and health indicators.
Innovative Way Forward:
- Digital Inclusion for Economic Growth: Accelerate digital inclusion strategies to empower citizens, enhance education, and facilitate online business, fostering economic growth.
- Green Infrastructure Development: Prioritize sustainable and green infrastructure projects, aligning with global environmental goals, to ensure long-term economic resilience.
- Blockchain for Financial Inclusion: Leverage blockchain technology to enhance financial inclusion, enabling secure and transparent transactions, especially in rural and underserved areas.
- AI-driven Skill Development: Implement artificial intelligence (AI) in skill development programs, customizing learning paths and enhancing employability in emerging sectors.
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