August 2024
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Foreign Policy Watch: India-ASEAN

Growing Bilateral Relations between India and Vietnam    

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Bordering countries of Vietnam

Mains level: Importance of Vietnam for India

Why in the news?

During his welcome of Vietnamese Prime Minister Pham Minh Chinh, Prime Minister Narendra Modi emphasized the significance of freedom of navigation while subtly referencing China.

Evolution of Bilateral Relations to Strategic Partnership

  • Early Relations: Cultural and economic links between India and Vietnam date back to the 2nd century, with significant support from India during Vietnam’s struggles against colonialism and foreign intervention, particularly during the Vietnam War.
  • Formal Diplomatic Relations: Official diplomatic relations were established in 1992, marking the beginning of extensive economic ties, including cooperation in oil exploration, agriculture, and manufacturing.
  • Upgrade to Strategic Partnership (2007): The relationship was elevated to a “Strategic Partnership” during Vietnamese Prime Minister Nguyen Tan Dung’s visit to India in July 2007. This marked a significant step in formalizing cooperation across various sectors, particularly in defence and security.
  • Comprehensive Strategic Partnership (2016): During Indian Prime Minister Narendra Modi’s visit to Vietnam in September 2016, the partnership was further upgraded to a “Comprehensive Strategic Partnership.” This upgrade emphasized enhanced cooperation in defence, trade, and cultural exchanges, as well as a shared commitment to regional security.

Vietnam’s Remarkable Strides under Communist Party of Vietnam (CPV) Leadership

  • Economic Development: Under the CPV’s leadership, Vietnam has experienced significant economic growth and development, embracing a foreign policy of independence and multilateralism.
    • This approach has positioned Vietnam as a reliable partner in the region, fostering deeper economic ties with countries like India.
  • Strategic Investments: Vietnam has actively sought to attract Indian investments in various sectors, including renewable energy, pharmaceuticals, and technology.
    • The Vietnamese government has expressed gratitude for India’s support during the COVID-19 pandemic, particularly in vaccine distribution, which has further solidified ties between the two nations.

Building Bridges in Strategic Relationship through Foreign Policy

  • Shared Vision for the Indo-Pacific: Both Prime Ministers emphasized their commitment to a free, open, and rules-based Indo-Pacific.
  • Indian PM’s assertion that India supports development, not expansionism, reflects a mutual stance against aggressive territorial claims, particularly in the South China Sea, where both nations advocate for adherence to international law.
  • Collective Approach to Conflicts: The leaders highlighted the importance of a collective approach to resolving regional conflicts, including those in Myanmar and West Asia.
    • This stance underscores their commitment to multilateralism and regional stability, with Vietnam recognizing India’s role as a stabilizing force in the Indo-Pacific.

Significance of the Visit

  • Strengthening Strategic Ties: Prime Minister Chinh’s visit signifies a deepening of the strategic partnership, with both sides committing to enhanced cooperation in defence, maritime security, and economic development. 
    • The agreement on a $300 million credit line for Vietnam’s maritime capabilities is a notable outcome of the discussions.
  • Cultural and Economic Connectivity: The visit also marked the signing of multiple agreements across various sectors, including customs, agriculture, and traditional medicine, demonstrating a comprehensive approach to enhancing bilateral relations.
    • The establishment of digital payment connectivity is another step towards strengthening economic ties.

Way forward: 

  • Strengthening Economic and Trade Ties: Both nations should focus on achieving the proposed bilateral trade target of $20 billion by expanding cooperation in key sectors such as renewable energy, technology, and agriculture.
  • Enhancing Defense and Security Cooperation: To address regional security challenges, particularly in the context of the South China Sea, India and Vietnam should deepen their defence and security collaboration.

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Renewable Energy – Wind, Tidal, Geothermal, etc.

The relevance of pumped storage projects      

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Renewable energy

Mains level: Significance of Pumped Storage Projects

Why in the news?

The Union Budget for 2024-25 announced that “a policy will be introduced to promote pumped storage projects aimed at electricity storage and ensuring the seamless integration of the increasing share of renewable energy.

Why is renewable power generation subject to variations and weather changes?

  • Due to Intermittent nature: Renewable energy sources, particularly solar and wind, are inherently intermittent. Solar energy is only available during daylight hours and is affected by weather conditions such as cloud cover, while wind energy varies with wind speed and direction. This variability leads to fluctuations in power generation, making it challenging to match supply with demand consistently.
  • Daily and Seasonal Variations: The generation capacity of renewable sources can change significantly over short periods (hours to days) and longer periods (seasonal). For instance, solar power generation peaks during sunny days and drops to zero at night, while wind power can vary greatly depending on seasonal weather patterns.

Significance of Pumped Storage Projects

  • Grid Stabilization: Pumped storage projects are critical for stabilizing the power grid by addressing the variability and intermittency of renewable energy sources like solar and wind.
  • Energy Storage Capacity: PSPs account for over 94% of the installed global energy storage capacity, making them the most widely used technology for large-scale energy storage.
  • Flexible Energy Generation: These projects can provide both base load and peaking power, offering flexibility in energy generation.  
  • Environmental Benefits: Pumped storage is a clean and environmentally friendly technology.
  • Economic Viability: The cost of energy from pumped storage is competitive compared to other energy storage technologies.

How do Power Managers decide which energy source to use?

  • Use of forecasting Techniques: Power managers utilize advanced forecasting techniques to predict renewable energy generation based on expected weather conditions. This allows them to plan the operation of different power plants in advance, ensuring a steady supply of electricity.
  • Demand and Supply Management: Decisions on which energy source to use are based on real-time demand and the availability of renewable energy. When there is a surplus of renewable energy (e.g., during sunny or windy periods), it may be used to pump water in pumped storage systems. Conversely, when renewable generation is low, power managers may rely on more stable sources like hydro, coal, or nuclear power to meet demand.

Where are some of the Pumped Storage Projects of India situated?

  • Kadamparai: Located in Tamil Nadu, this facility has a capacity of 400 MW and operates by pumping water to a higher reservoir during periods of surplus power generation.
  • Other Notable Projects: India has several other pumped storage projects, including those at Nagarjunasagar, Kadana, and Panchet. These facilities contribute to managing the variability of renewable energy generation in the country.

How do the reservoirs in Kadamparai, Tamil Nadu operate?

  • The Kadamparai pumped storage plant consists of two reservoirs at different elevations. Water is pumped from the lower reservoir to the upper reservoir when there is surplus power available, typically from solar or wind sources.
  • When demand rises, especially during peak evening hours, water flows from the upper reservoir to the lower reservoir, turning turbines to generate electricity. This operation allows the plant to provide power for three to four hours during peak demand periods, effectively stabilizing the grid.
  • The plant can switch between pumping and generating modes, allowing it to respond quickly to changes in power demand. This flexibility is crucial for integrating variable renewable energy sources into the grid.

Conclusion: The need to Develop a robust and flexible grid infrastructure that can efficiently handle the integration of renewable energy sources is crucial. Implementing smart grid technologies, including real-time monitoring, advanced forecasting techniques, and automated demand-response systems, can optimize the balance between supply and demand.

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

States can sub-classify SCs for quotas: top court      

Note4Students

From UPSC perspective, the following things are important :

Prelims level: What is sub-categorisation within SCs and STs?

Mains level: Why sub-classification is necessary?

Why in the news?

  • In a 6:1 majority ruling on August 1, the Supreme Court determined that sub-classification within the Scheduled Castes (SCs) and Scheduled Tribes (STs) categories is permissible to extend the benefits of affirmative action.
  • However, the seven-judge Bench, led by Chief Justice of India (CJI) D.Y. Chandrachud, emphasized that this must be grounded on “quantifiable and demonstrable data” rather than political motivations.

Why sub-classification is necessary?

  • Addressing Inequality Within SCs: The Supreme Court ruling emphasizes that SCs are not a homogeneous group. Instead, there are significant disparities in socio-economic and educational status among different castes within the SC category.
    • Sub-classification allows for the identification of those who are more disadvantaged and ensures that benefits are equitably distributed among them.
  • Equitable Distribution of Benefits: States have argued that despite existing reservations, certain castes remain grossly underrepresented compared to others.
    • Sub-classification aims to create separate quotas for these underrepresented groups within the SC quota, thereby promoting fairness and equity in the distribution of affirmative action benefits.
  • Legal Precedent and Historical Evidence: The majority opinion of the Supreme Court referenced historical and empirical evidence indicating that specific castes within the SCs face greater oppression and discrimination.
  • Judicial Oversight: The ruling stipulates that any sub-classification must be based on “quantifiable and demonstrable data” regarding levels of backwardness and representation, ensuring that the process is transparent and justifiable.

What does the creamy layer principle say?

  • Exclusion of the Creamy Layer: The creamy layer principle refers to the exclusion of the more affluent and advanced members within a backward class from receiving reservation benefits. This principle is currently applied to Other Backward Classes (OBCs) but has been suggested for implementation within SCs and STs as well.
  • Achieving True Equality: Justice B.R. Gavai, in his concurring opinion, emphasized the need for states to identify and exclude the creamy layer among SCs and STs to ensure that affirmative action benefits reach those who are genuinely disadvantaged.
  • Historical reason: The creamy layer principle has been upheld in various Supreme Court judgments (Indra Sawhney judgment in 1992), which have recognized that certain individuals within reserved categories may have advanced socio-economic status and should not benefit from reservations intended for the disadvantaged.

Way forward: 

  • Data Collection and Analysis: States should prioritize the collection of comprehensive and quantifiable data on the socio-economic status of different castes within the SC and ST categories.
  • Policy Framework for Creamy Layer Exclusion: States should develop clear policies to identify and exclude the creamy layer within SCs and STs from reservation benefits.

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Disasters and Disaster Management – Sendai Framework, Floods, Cyclones, etc.

Govt. introduces Disaster Management (Amendment) Bill, 2024 in Lok Sabha     

Note4Students

From UPSC perspective, the following things are important :

Prelims level: About NDMA

Mains level: Roles and functions of NDMA

Why in the news?

Union Minister of State for Home Nityanand Rai presented the Disaster Management (Amendment) Bill, 2024 in the Lok Sabha on Thursday.

Proposed Provisions in the Bill

  • Creation of a Disaster Database: The Bill mandates the establishment of a comprehensive disaster database at both national and state levels, which will include disaster assessments, fund allocation details, expenditures, preparedness and mitigation plans, and a risk register based on the type and severity of risks.
  • Urban Disaster Management Authority: It proposes the formation of an “Urban Disaster Management Authority” for state capitals and large cities with municipal corporations, aimed at enhancing local disaster management capabilities.
  • Empowerment of NDMA and SDMAs: The Bill empowers the National Disaster Management Authority (NDMA) and State Disaster Management Authorities (SDMAs) to prepare disaster management plans, replacing the previous role of the National Executive Committee and State Executive Committees.
  • Periodic Risk Assessment: The NDMA is tasked with periodically assessing the entire range of disaster risks in the country, including emerging risks due to extreme climate events.
  • Statutory Status for Pre-Act Organizations: The Bill provides statutory recognition to certain pre-existing organizations, such as the National Crisis Management Committee and the High-Level Committee.
  • Penalties for Non-Compliance: It includes provisions allowing the Central and State governments to impose penalties for actions that hinder disaster management efforts, with fines not exceeding ₹10,000.

Substantial Questions on Excessive Powers

  • Concerns Over Central Authority: Opposition members, including Congress leader Manish Tewari, raised concerns that the Bill grants excessive rule-making powers to the Central government, potentially encroaching upon the legislative powers reserved for State governments.
  • Constitutional Validity: Questions were raised regarding the constitutional basis for the Bill, as disaster management is not explicitly mentioned in the subjects of the Concurrent List.
  • Multiplicity of Authorities: Critics, including Trinamool Congress member Sougata Roy, expressed concerns that the creation of multiple authorities could lead to confusion and bureaucratic inefficiencies, potentially hampering effective disaster response.

Need to aim for more clarity

  • Clarification of roles: The Bill aims to bring more clarity and convergence in the roles of various authorities and committees involved in disaster management, addressing the need for streamlined coordination among stakeholders.
  • Enhanced Local Management: By empowering local authorities through the establishment of Urban Disaster Management Authorities, the Bill seeks to ensure that disaster management plans are more relevant and tailored to specific regional challenges.
  • Alignment with Development Plans: The Bill emphasizes the need to mainstream disaster management into development plans, aligning with recommendations from the Fifteenth Finance Commission and ensuring that disaster risk reduction is integrated into broader governance frameworks.

Way forward: 

  • Strengthening Collaboration with State Governments: To address concerns about excessive central authority and potential overlaps with state powers, it is crucial to establish a framework for ongoing collaboration between the Central and State Disaster Management Authorities.
  • Implementing a Comprehensive Training and Capacity-Building Program: The successful implementation of the proposed Urban Disaster Management Authorities and the broader disaster management framework will depend on the capacity of local officials and stakeholders.

Mains PYQ: 

Q  Discuss the recent measures initiated in disaster management by the Government of India departing from the earlier reactive approach. (2020)

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Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

States can directly buy Rice from FCI

Note4Students

From UPSC perspective, the following things are important :

Prelims level: FCI, Open Market Sale Scheme

Why in the News?

The Union Food and Consumer Affairs Minister announced that States can now directly purchase rice from the Food Corporation of India (FCI) under the Open Market Sale Scheme (Domestic) without participating in e-auctions.

Key Announcements:

Direct Rice Purchase of Rice by the States:

  • States can procure rice directly from FCI at ₹2,800 per quintal (excluding transportation cost), down from the earlier rate of ₹2,900 per quintal.
  • This new rate applies to rice procured over the stipulated 5 kg of free grain per individual under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

Launch of Price Monitoring System (PMS) 4.0:

  • Minister Joshi launched the 4.0 version of the Price Monitoring System (PMS) mobile app.
  • The app, which previously monitored prices of 22 commodities daily, will now include 38 commodities.
  • The additional 16 food items are bajra (whole), jowar (whole), ragi (whole), suji (wheat), maida (wheat), besan, ghee, butter (pasteurised), brinjal, egg, black pepper, coriander, cumin seed, red chillies, turmeric powder, and banana.

 

About Open Market Sale Scheme

Details
Purpose Enhance the supply of food grains, especially wheat, during the lean season to moderate open market prices, especially in deficit regions.
Administered by Food Corporation of India (FCI)
Method of Sale Surplus stocks of wheat and rice sold at pre-determined prices through e-auction on the National Commodity and Derivatives Exchange (NCDEX) platform.
Participants Bulk consumers, private traders, State Governments, and Union Territory Administrations
Auction Frequency Weekly
Reserve Price Fixed by the government; bidders cannot quote less than the reserve price.
Schemes under OMSS
  1. Sale of wheat to bulk consumers/private traders through e-auction.
  2. Sale of wheat to bulk consumers/private traders through e-auction by dedicated movement.
  3. Sale of Raw Rice Grade ‘A’ to bulk consumers/private traders through e-auction.

 

PYQ:

[2017] Which of the following is/are the advantage/advantages of implementing the ‘National Agriculture Market’ scheme?

1. It is a pan-India electronic trading portal for agricultural commodities.

2. It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce.

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

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Capital Markets: Challenges and Developments

What is the Sovereign Gold Bond Scheme?                                                        

Note4Students

From UPSC perspective, the following things are important :

Prelims level: SGB Scheme

Why in the News?

Recent reports suggest that the government might reduce or discontinue the Sovereign Gold Bond (SGB) scheme due to its high cost.

Decline in Popularity of SGB:

  • This speculation follows the Union budget’s decision to slash customs duties on gold and silver from 15% to 6%.
  • The reduction in customs duties is expected to decrease demand for SGBs, which has already led to a 2-5% drop in their prices on the National Stock Exchange (NSE).

About Sovereign Gold Bonds (SGBs)

Details
Launch 2015
Nature
  • Government securities denominated in grams of gold.
  • Issued by RBI.
Objective Reduce dependence on gold imports and shift savings from physical gold to paper form.
Eligibility Resident in India, including individuals, HUFs, trusts, universities, and charitable institutions.
Denomination and Tenor
  • Denominated in multiples of grams of gold, with a basic unit of 1 gram.
  • Tenor of 8 years with an exit option from the 5th year on interest payment dates.
Investment Limits
  • Minimum: 1 gram of gold.
  • Maximum: 4 kg for individuals and HUFs,
    • 20 kg for trusts and similar entities per fiscal year.
Benefits
  • Quantity of gold protected, receiving market price at redemption.
  • Eliminates storage risks and costs.
  • Assured market value at maturity and periodic interest.
  • Free from making charges and purity issues.
  • Held in RBI books or demat form, eliminating scrip loss risk.
Add-ons
  • Can be used as collateral for loans.
  • Loan-to-value (LTV) ratio set equal to ordinary gold loans.

 

PYQ: 

[2016] What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?

  1. To bring the idle gold lying with Indian households into the economy
  2. To promote FDI in the gold and jewellery sector
  3. To reduce India’s dependence on gold imports

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

https://indianexpress.com/article/business/commodities/gold-customs-duty-may-take-some-shine-off-sovereign-gold-bonds-9485686/

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Sports Authority of India (SAI) and the Board of Control for Cricket in India (BCCI)  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: SAI, BCCI

Why in the News?

The Health Ministry has requested the Sports Authority of India (SAI) and the Board of Control for Cricket in India (BCCI) to implement measures to prevent surrogate advertisements of tobacco and alcoholrelated products by sportspersons.

About Sports Authority of India (SAI)

Details
Establishment Founded in 1984 by the Ministry of Youth Affairs and Sports, Government of India
Headquarters Jawaharlal Nehru Stadium Complex, New Delhi, India
Objectives
  • Promote sports and physical education
  • Develop sports infrastructure
  • Identify and nurture sports talent
  • Conduct coaching and training programs
Key Programs
  • National Sports Talent Contest Scheme (NSTC)
  • Special Area Games (SAG)
  • SAI Training Centres (STC)
  • Centres of Excellence (COE)
  • National Sports Academies (NSA)
Major Facilities
  • Jawaharlal Nehru Stadium, New Delhi
  • Indira Gandhi Stadium Complex, New Delhi
  • Major Dhyan Chand National Stadium, New Delhi
  • Netaji Subhas National Institute of Sports (NSNIS), Patiala
Notable Initiatives
  • Khelo India Program
  • Target Olympic Podium Scheme (TOPS)
  • Mission Olympic Cell (MOC)

 

About Board of Control for Cricket in India (BCCI)

Details
Establishment Founded in December 1928
Headquarters Cricket Centre, Wankhede Stadium, Mumbai, India
Objectives
  • Promote and develop cricket in India
  • Organize domestic and international cricket matches
  • Identify and nurture cricket talent
  • Maintain cricket infrastructure and facilities
Key Responsibilities
  • Selection of national cricket teams (men’s, women’s, and junior)
  • Organization of domestic cricket tournaments
  • Administration of Indian Premier League (IPL)
  • Conducting training and coaching programs
Major Tournaments
  • Indian Premier League (IPL)
  • Ranji Trophy
  • Vijay Hazare Trophy
  • Syed Mushtaq Ali Trophy
  • Duleep Trophy
  • Irani Cup
Funding and Support
  • Funded through sponsorships, broadcasting rights, and match revenues
  • Provides financial assistance and contracts to cricketers
Reforms  Justice Lodha Committee: Result of the report submitted by the Justice Mukul Mudgal Committee after an investigation into the 2013 IPL betting scandal.

 

PYQ:

[2021] Consider the following statements in respect of the ICC World Test Championship:

1. The finalists were decided by the number of matches they won.

2. New Zealand was ranked ahead of England because it won more matches than England.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 and 2

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