Note4Students
From UPSC perspective, the following things are important :
Mains level: India-UAE relations;
Why in the News?
The bilateral investment treaty (BIT) between India and the United Arab Emirates (UAE), signed earlier this year, has recently been made public. This new treaty will replace the 2014 India-UAE investment agreement and holds significant importance.
What is the Bilateral Investment Treaty (BIT) for investors?
- The Model BIT is a framework established by India to guide negotiations for bilateral investment treaties, aiming to protect foreign investments while balancing the state’s regulatory rights.
- It emphasizes clear definitions, local remedies, and limits on investor-state dispute settlement (ISDS) claims.
Background of 2024 BIT:
- The 2014 India-UAE investment treaty, formally known as the Bilateral Investment Promotion and Protection Agreement (BIPPA), was established to enhance economic cooperation and protect investments between India and the United Arab Emirates.
- This treaty aimed to create a stable and predictable investment climate for investors from both countries, facilitating foreign direct investment (FDI) flows.
- The 2014 BIPPA was replaced by a new Bilateral Investment Treaty (BIT) signed in February 2024, which came into effect in August 2024.
- This new BIT introduces several changes aimed at improving investment protection and reducing arbitral discretion while maintaining India’s regulatory sovereignty.
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What are the implications of India’s revised Model BIT for foreign investors?
- Enhanced Investor Protection: The new BIT aims to provide greater protection for foreign investments while balancing the state’s right to regulate. This is expected to boost investor confidence by assuring minimum standards of treatment and non-discrimination.
- Quicker Access to ISDS: The reduction of the local remedies exhaustion period from five years to three years allows investors to access international arbitration more quickly if disputes arise, potentially making India a more attractive destination for foreign investments.
- Clearer Definitions and Reduced Discretion: By refining the definition of what constitutes an investment and removing subjective criteria related to the significance of investments for host state development, the BIT reduces arbitral discretion, which can lead to more predictable outcomes in dispute resolution.
How does the India-UAE BIT depart from the Model BIT?
- Exhaustion of Local Remedies: As noted, the India-UAE BIT lowers the exhaustion period from five years to three years, reflecting India’s responsiveness to concerns about lengthy legal processes in its judicial system.
- Removal of Development Significance Criterion: The BIT omits the requirement that investments must significantly contribute to the host state’s development—a criterion present in the Model BIT. This change simplifies the definition of what constitutes an investment eligible for protection, reducing subjective interpretations by ISDS tribunals.
- No Reference to Customary International Law: Unlike the Model BIT, which links treaty violations to customary international law (CIL), Article 4 of the India-UAE BIT does not reference CIL, thereby limiting arbitral discretion and providing clearer grounds for evaluating state actions against investments.
- Prohibition on Third-Party Funding: The new treaty explicitly disallows third-party funding in ISDS proceedings, which may impact investors’ ability to finance their claims against states without personal financial risk.
What are the positives and future opportunities for India-UAE BIT relations?
- Strengthened Economic Cooperation: The BIT is expected to enhance bilateral economic ties by providing a stable legal framework that encourages investment flows between India and the UAE, both of which have significant stakes in each other’s economies.
- Increased FDI Inflows: With UAE being a key source of foreign direct investment (FDI) for India, estimated at around $19 billion, the new treaty is anticipated to stimulate further investments, benefiting various sectors in both countries.
- Alignment with Broader Economic Agreements: The BIT complements other agreements such as the Comprehensive Economic Partnership Agreement (CEPA), reinforcing a comprehensive framework for economic collaboration beyond just investment protection.
- Potential Influence on Future Treaties: India’s approach in negotiating this BIT may serve as a model for future treaties with other countries, reflecting a more flexible stance that could attract additional foreign investments while still safeguarding national interests.
Conclusion: The India-UAE BIT offers stronger investment protection, quicker dispute resolution, and clearer definitions, fostering bilateral economic ties. This new agreement balances investor rights and state regulation, encourages increased FDI, strengthens economic cooperation, and could influence future treaties for enhanced global investment.
Mains PYQ:
Q How will the I2U2 (India, Israel, UAE and USA) grouping transform India’s position in global politics? (UPSC IAS/2022)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Issues related to the energy sector;
Why in the News?
A 2019 tender by the Solar Energy Corporation of India (SECI) is now central to a US district court indictment alleging that Gautam Adani and others offered ₹2,029 crore ($265 million) in bribes to Indian officials.
What specific allegations have been made regarding the SECI solar bid?
- The US Department of Justice alleges that Gautam Adani and his associates offered approximately ₹2,029 crore (US $265 million) in bribes to Indian government officials.
- This was to facilitate the signing of power supply agreements (PSAs) between SECI and state electricity distribution companies (DISCOMs), which were initially reluctant to engage due to high energy prices following the tender bidding process.
- Failure to Secure Agreements: After SECI awarded the tender, which included 12,000 MW of generation capacity and 3,000 MW of module manufacturing capacity, it struggled to finalize PSAs with DISCOMs.
- This inability jeopardized the lucrative letters of award (LOAs) that Adani Green and Azure Power expected from the project.
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How has SECI’s role in the solar bidding process been scrutinized?
- SECI is a public sector entity under the Union Ministry of New and Renewable Energy, tasked with promoting renewable energy sources in India.
- Its role as a facilitator in power procurement has come under scrutiny due to its inability to secure buyers for the power generated under this tender.
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- Challenges Faced: SECI’s difficulties in finding buyers stemmed from DISCOMs’ reluctance to commit to PSAs at higher tariffs when they anticipated further reductions in solar power prices due to market conditions.
- This situation created a fertile ground for alleged corrupt practices as companies sought alternative means to secure contracts.
- Impact on Credibility: The allegations have raised questions about SECI’s operational integrity and its effectiveness in managing large-scale renewable energy projects, potentially undermining public trust in governmental processes related to renewable energy procurement.
What are the potential repercussions for India’s renewable energy sector?
- Investor Confidence: The indictment could deter foreign investment in India’s renewable energy sector, as potential investors may view the allegations as indicative of systemic corruption within the industry.
- Regulatory Scrutiny: Increased scrutiny from regulatory bodies both domestically and internationally may lead to tighter regulations and oversight on bidding processes and contract awards in the renewable sector.
- Market Dynamics: If proven true, these allegations could disrupt existing contracts and lead DISCOMs to reassess their engagement with solar projects, particularly if they fear further legal ramifications or reputational damage associated with such contracts.
- Long-term Impact on Policy: The case could catalyze reforms aimed at improving transparency and accountability within government procurement processes for renewable energy projects, potentially reshaping how future tenders are conducted.
Way forward:
- Rebuild Investor Confidence: The government must actively engage with international stakeholders, assuring them of corrective actions and fostering a business-friendly environment through improved governance and adherence to global best practices in renewable energy projects.
- Strengthen Regulatory Frameworks: India should enhance transparency in renewable energy procurement by establishing robust anti-corruption mechanisms, independent oversight committees, and clear guidelines to prevent undue influence in tender processes.
Mains PYQ:
Q Explain the purpose of the Green Grid Initiative launched at the World Leaders Summit of the COP26 UN Climate Change Conference in Glasgow in November 2021. When was this idea first floated in the International Solar Alliance (ISA)? (UPSC IAS/2021)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Nafithromycin
Why in the News?
The Ministry of Science & Technology has launched Nafithromycin, India’s first indigenous antibiotic to combat drug-resistant infections.
About Nafithromycin:
|
Details |
| About |
• It was developed with the support of the Biotechnology Industry Research Assistance Council (BIRAC), a unit under the Department of Biotechnology, to combat antimicrobial resistance (AMR).
• It aims to treat Community-Acquired Bacterial Pneumonia (CABP) caused by drug-resistant bacteria.
( Awaiting final approval from CDSCO for manufacturing and public use.) |
| Features |
• Developed over 14 years of clinical trials in the U.S., Europe, and India.
• 10 times more effective than azithromycin. (3 doses to combat Drug-Resistant Pneumonia)
• Minimal side effects, no significant drug interactions, and food-independent. |
| Significance |
• It targets both typical and atypical pathogens.
• It addresses a global health issue, especially CABP, contributing to over 2 million deaths annually.
• Offers a more effective, faster, and safer treatment for drug-resistant pneumonia.
• Demonstrates successful public-private collaboration between the government and Wockhardt Pharmaceuticals.
• A cost-effective solution for treating resistant infections in low-resource settings. |
PYQ:
[2019] Which of the following are the reasons for the occurrence of multi-drug resistance in microbial pathogens in India?
- Genetic predisposition of some people
- Taking incorrect doses of antibiotics to cure diseases
- Using antibiotics in livestock farming
- Multiple chronic diseases in some people
Select the correct answer using the code given below.
(a) 1 and 2
(b) 2 and 3 only
(c) 1, 3 and 4
(d) 2, 3 and 4 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: King Cobra and its distinct species
Why in the News?
A 12-year study by researchers from the Kalinga Centre for Rainforest Ecology has revealed that the king cobra, previously believed to be a single species, actually comprises four distinct species.
Important facts related to King Cobra:
|
Details |
| About |
• Scientific Name: Ophiophagus hannah.
• It is the largest Venomous Snake; Reaches up to 18 feet (5.5 meters).
• Venom is Neurotoxic, affecting the nervous system. |
| Re-categorization |
Kalinga Centre for Rainforest Ecology identified the species as:
- O. Hannah (Northern),
- O. bungarus (Sunda),
- O. kaalinga (Western Ghats), and
- O. salvatana (Luzon).
Species differ by 1-4% genetically, justifying their reclassification. |
| Habitat and Behavioural Features |
• Found in tropical, subtropical, and temperate regions ( India, Sri Lanka, Southeast Asia, and the Philippines)
• Solitary and territorial, with a diet of snakes, lizards, birds, and rodents.
• Mating occurs annually during monsoon, with females laying up to 40 eggs in nests.
• Raises and spreads its hood when threatened, appearing larger.
• Vital in controlling snake populations and maintaining ecological balance. |
| Conservation Status |
- IUCN Red List: Vulnerable.
- CITES: Appendix II.
- Wildlife (Protection) Act, 1972: Schedule II.
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PYQ:
[2010] King Cobra is the only snake that makes its own nest. Why does it make its nest?
(a) It is a snake-eater and the nest helps attract other snakes
(b) It is a viviparous snake and needs a nest to give birth to its offspring
(c) It is an oviparous snake and lays its eggs in the nest and guards the nest until they are hatched
(d) It is a large, cold-blooded animal and needs a nest to hibernate in the cold season |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Project Veer Gatha 4.0
Why in the News?
Over 1.76 crore school students participated in Project Veer Gatha 4.0, sharing creative tributes to the bravery and sacrifice of Armed Forces personnel.
About Project Veer Gatha:
|
Details |
| About |
• Launched in 2021 to honor the acts of bravery and selfless sacrifice of Gallantry Awardees.
• 1.76 crore students from 36 states and UTs participated.
• Conducted annually since its inception, with increasing participation:
• First Edition (2021): 8 lakh students, Second Edition (2022): 19.5 lakh students, Third Edition (2023): 1.36 crore students. |
| Aims and Objectives |
• Instill patriotism and national pride among students.
• Spread awareness about the heroic contributions of Gallantry Awardees.
• Foster creativity through various forms of artistic expression.
• Promote national unity and pride across India’s diverse school system.
• Enhance knowledge about unsung heroes and military heritage. |
| Features of the Program |
• Creative content submissions, including poems, paintings, essays, and videos.
• 100 national-level winners annually, with a ₹10,000 cash prize and recognition by the Ministry of Education and Ministry of Defence.
• District and state awards for outstanding students.
• Educational outreach programs by the Ministry of Defence to engage students.
• Digital submission via the MyGov portal, making the process inclusive and easy for wide participation.
• Focus on both famous Gallantry Awardees and unsung heroes. |
PYQ:
[2024] Operations undertaken by the Army towards upliftment of the local population in remote areas to include addressing of their basic needs is called:
(a) Operation Sankalp
(b) Operation Maitri
(c) Operation Sadbhavana
(d) Operation Madad |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: D’Cunha Committee and its recommendations
Why in the News?
The commission, headed by retired High Court judge John Michael D’Cunha, has released a report investigating the irregularities in the procurement and management of COVID-19 resources in Karnataka.
Key Findings:
- Among the major concerns are the procurement of ventilators under the PM CARES Fund and the inflated prices of PPE kits.
- The report has raised alarms over the unnecessary procurement of ventilators and the questionable pricing of PPE kits sourced from Chinese companies.
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What is the D’Cunha Committee?
- It was formed in August 2023 to investigate the alleged irregularities in COVID-19 procurements and management of medical supplies during the tenure of the erstwhile government in Karnataka.
- It was headed by retired High Court judge John Michael D’Cunha.
- It was tasked with examining the procurement processes and the disbursement of funds under various schemes, particularly the PM CARES Fund, and identifying administrative lapses and corruption.
Recommendations given by the Committee:
- Investigate Ventilator Procurement: Recommend a probe into the procurement of 130 ventilators on March 22, 2020, under questionable circumstances, despite similar supplies under PM CARES.
- Review Undelivered Ventilators: Recommended action on payments made for ventilators that were undelivered or partially delivered.
- Scrutiny of Price Variations: Called for an investigation into the vast price differences for ventilators, ranging from ₹5 lakh to ₹16.25 lakh.
- Probe PPE Kit Purchases: Suggested further inquiry into inflated prices for PPE kits bought from Chinese firms despite cheaper local alternatives.
- Formation of SIT: Recommended setting up a Special Investigation Team (SIT) for further probe into the Karnataka Medical Supplies Corporation Ltd. (KSMSCL).
- Enhance Transparency: Urged improved procedures to ensure accountability in future procurements.
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