Note4Students
From UPSC perspective, the following things are important :
Mains level: Challenges related to employment;
Why in the news?
India’s Rural low wages pose a significant challenge, but adopting a ground-level perspective on employers’ daily realities highlights policy measures to increase the number of high-productivity employers.
What are the root causes of the current wage stagnation in India?
- Economic Structure: The shift from agriculture to non-farm jobs has not been accompanied by a corresponding increase in productivity. Despite significant government spending, the flow of jobs since 1991 has not reduced farm employment, leading to wage stagnation in rural areas.
- Skill Mismatch: There is a disparity between the skills available in the labour market and those demanded by employers. Many workers remain under-skilled for the higher-paying jobs that are available, perpetuating low wages.
- Economic growth vs wage stagnation: Despite India’s GDP growing at a strong rate, averaging 7.8% in recent years, this growth has not led to substantial wage increases for rural workers. In fact, real wages, when adjusted for inflation, have either remained stagnant or decreased. This disparity underscores a crucial issue: the underlying nature of economic growth.
- Shift to Capital-Intensive Growth: India’s recent economic growth is driven by capital-intensive sectors, which create fewer jobs, limiting the demand for rural labour and keeping wages low.
- Inflation vs. Wage Growth: While nominal wages have risen, inflation has outpaced wage growth, reducing the real purchasing power of rural workers. For example, rural wages grew by 5.2% nominally, but real wage growth was negative at -0.4%.
- Increased Labour Supply: Government schemes like Ujjwala and Har Ghar Jal have increased rural women’s workforce participation, intensifying competition for jobs and putting downward pressure on wages.
- Agricultural Wage Stagnation: Despite steady agricultural growth (4.2% and 3.6% in recent years), wages in agriculture have not increased proportionally, limiting overall wage growth in rural areas.
How can India effectively implement a living wage system?
A living wage system ensures workers earn enough to meet basic needs like food, housing, healthcare, and education, enabling a decent standard of living beyond mere subsistence wages.
- Policy Framework: Establishing a clear definition of what constitutes a living wage based on local cost of living metrics is essential. This framework should be adaptable to different regions and sectors.
- Incentives for Employers: Providing tax breaks or subsidies for businesses that pay living wages can encourage compliance and support workers’ livelihoods.
- Strengthening Labor Rights: Ensuring robust enforcement of labor laws that protect workers’ rights to fair wages and safe working conditions is crucial for implementing a living wage system effectively.
- Public Awareness Campaigns: Educating both employers and employees about the benefits of a living wage can help shift perceptions and practices within the workforce.
What are the wage disparities in India?
- Gender Wage Gap: According to the Global Gender Gap Index 2024, Indian women earn only ₹40 for every ₹100 earned by men, highlighting a significant gender pay disparity.
- The economic gender parity level in India is recorded at 39.8%, indicating that while some progress has been made, substantial gaps remain in economic participation and remuneration between genders.
- Regional Wage Disparities: The average daily wage for casual workers in rural areas is approximately ₹104, significantly lower than the national average of ₹247 per day for all workers.
- Wage Inequality Metrics: The Gini coefficient for wages in India stands at 0.49, indicating a high level of wage inequality. The D9/D1 wage ratio, which compares the earnings of the top 10% to the bottom 10%, is 6.7, underscoring the stark contrast in earnings across different segments of the workforce.
Note: The D9/D1 wage ratio is a measure of income inequality that compares the earnings of the top 10% of wage earners (D9) to the earnings of the bottom 10% (D1) within a given population |
What policy measures can be taken to address wage disparities and ensure fair compensation? (Way forward)
- Rationalisation of Regulations: Streamlining regulatory frameworks to reduce bureaucratic hurdles can encourage entrepreneurship and job creation. This includes removing unnecessary jail provisions that deter business operations.
- Investing in Human Capital: Prioritizing skill development programs aligned with market demands can boost employability and empower workers to secure higher-paying jobs.
- Encouraging Non-Farm Employment: Policies should focus on fostering private, productive non-farm jobs through digitisation and formalization, paving the way for better wages.
- Strengthening Redistribution Mechanisms: Adopting progressive taxation on higher profits can fund social programs designed to uplift wage levels across different sectors.
- Fostering Long-Term Economic Planning: Crafting a comprehensive economic strategy aligned with labour market needs is essential for ensuring sustainable wage growth and effectively addressing disparities.
Mains PYQ:
Q Can the strategy of regional-resource-based manufacturing help in promoting employment in India? (UPSC IAS/2019)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Issues related to the electrification of transport;
Why in the news?
The ‘Mission 100% Electrification’ project is like chasing an unrealistic dream of becoming a green railway, leading to many usable diesel locomotives becoming unnecessary.
What are the key points of the report?
- Export of Repurposed Locomotives: RITES Ltd. is exporting six refurbished broad-gauge diesel locomotives to African railways after complex gauge conversion, marking a first in such re-engineering.
- Idle Diesel Locomotives: Around 760 diesel locomotives, with over 60% still serviceable, are redundant due to the rapid electrification of the railway network.
- Limited Environmental and Economic Gains: Electrification reduces only 2% of diesel consumption, while coal-powered electricity (50% of the total) negates environmental benefits, maintaining reliance on polluting sources.
- Strategic Contradictions: Despite targeting 100% electrification, Indian Railways plans to retain 3,500 diesel locomotives for disaster management and traffic needs, undercutting “green” claims.
- Policy and Financial Wastage: The rushed electrification drive has led to premature asset redundancy, wasting public funds without ensuring environmental or financial sustainability.
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What constitutes greenwashing in the context of Indian Railways?
- Misleading Claims of Environmental Benefits: The Indian Railways’ push for 100% electrification is framed as a move towards a “green railway.” However, this initiative overlooks the fact that a significant portion of the electricity generated in India comes from coal-fired power plants, which are environmentally harmful.
- Thus, the transition from diesel to electric locomotives may merely shift pollution from one source to another without achieving genuine environmental benefits.
- Redundancy of Serviceable Assets: The decision to electrify the railway network has led to the premature stabling of functional diesel locomotives, many of which have considerable residual life left.
- This not only represents a waste of resources but also raises questions about the actual motivations behind electrification efforts.
- Focus on Slogans Over Substance: The Mission 100% Electrification initiative appears to prioritize headline-grabbing goals over comprehensive and well-thought-out policies.
- This approach can be seen as greenwashing, as it promotes an image of environmental responsibility while failing to address the underlying issues related to energy sourcing and pollution.
How do greenwashing practices impact public perception and trust?
- Erosion of Credibility: When organizations like Indian Railways promote initiatives that are not genuinely sustainable, it can lead to public scepticism regarding their commitment to environmental issues.
- Misallocation of Resources: Public perception may shift towards viewing government initiatives as wasteful or misguided, leading to decreased support for future projects that could have real environmental benefits.
- Increased Public Scrutiny: Greenwashing practices often lead to increased scrutiny from activists, media, and the public.
- As stakeholders demand transparency and accountability, organizations may face backlash for failing to deliver on their environmental promises.
What regulatory measures can be implemented to combat greenwashing in the transportation sector? (Way forward)
- Clear Guidelines for Environmental Claims: Establishing stringent regulations that define what constitutes legitimate environmental benefits can help prevent misleading claims.
- Organizations should be required to substantiate their claims with verifiable data and transparent reporting.
- Mandatory Sustainability Reporting: Implementing requirements for regular sustainability audits and reporting can ensure that transportation entities disclose their actual environmental impact, including emissions data and energy sources used.
- Public Accountability Mechanisms: Creating independent bodies to assess and review claims made by transportation sectors regarding sustainability initiatives can enhance accountability.
- These bodies could provide certifications or ratings based on genuine environmental performance rather than promotional claims.
- Incentives for Genuine Sustainability Efforts: Providing financial incentives or recognition for organizations that implement effective sustainability measures can encourage genuine efforts rather than superficial compliance with green initiatives.
Mains PYQ:
Q Why is Public Private Partnership (PPP) required in infrastructural projects? Examine the role of PPP model in the redevelopment of Railway Stations in India. (2022)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Significance and issues related to hydrogen;
Why in the news?
India aims to produce 5 million metric tonnes of green hydrogen annually by 2030 to lead in the sector and reduce emissions, but the high costs of financing may hinder this goal.
Hydrogen fuel comes in three types:
- Grey hydrogen (produced from natural gas), Blue hydrogen (Grey hydrogen with carbon capture), and Green hydrogen (produced using renewable energy through electrolysis, with no emissions).
What are the key financial barriers to scaling green hydrogen production?
- High Production Costs: The cost of producing green hydrogen is significantly higher ($5.30-$6.70 per kg) compared to traditional grey/blue hydrogen ($1.9-$2.4 per kg). This price disparity makes green hydrogen economically uncompetitive and deters investment and offtake.
- High Weighted Average Cost of Capital (WACC): In emerging markets like India, higher perceived risks increase borrowing costs. This results in a high WACC, which heavily influences the Levelised Cost of Electricity (LCOE) and the overall cost of green hydrogen production.
- High Electrolyzer Costs: The current costs of electrolyzers, ranging from $500-1,400/kW for alkaline and $1,100-1,800/kW for proton exchange membrane systems, further strain the financial viability of green hydrogen projects.
- Scaling Challenge: Green hydrogen production costs can only decrease with scaled production, but scaling up requires financial viability. The market faces a catch-22 situation: without economies of scale, production remains expensive, and without lowering costs, scaling is unfeasible.
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How can innovative financing mechanisms be developed?
- Blended Finance Models: Combining public and private capital can help lower risks and make investments in green hydrogen more attractive. Government-backed financial instruments or concessional loans can reduce borrowing costs, lowering WACC.
- Green Bonds and Climate Financing: The issuance of green bonds to raise capital for renewable energy projects can provide long-term funding at lower costs. These bonds can appeal to investors with an interest in sustainable investments.
- Private-Public Partnerships (PPP): Collaborations between government and private sectors can help mitigate risks and ensure the financing of green hydrogen projects. To attract private investors, governments can provide financial support through incentives, subsidies, or tax breaks.
- Carbon Credits and Offtake Agreements: Green hydrogen projects could leverage carbon credits or long-term offtake agreements to secure steady revenue streams, which would increase investor confidence and help finance production scale-up.
What role do policy frameworks play in facilitating investment in green hydrogen?
- Incentives and Subsidies: Government policies offering subsidies, tax incentives, or feed-in tariffs can help offset the high initial costs of green hydrogen production and encourage private investment.
- Long-Term Policy Clarity: Clear, stable, and long-term policy frameworks provide certainty to investors, reducing perceived risks and lowering the cost of capital. Such policies could include long-term targets for green hydrogen production, financing support, and infrastructure development.
- Regulatory Support for Innovation: Governments can encourage innovation by providing regulatory frameworks that support new technologies, such as electrolyzers and advanced hydrogen storage solutions, ensuring the rapid scaling of green hydrogen.
- Market Creation and Demand-Driven Initiatives: Policies that create demand for green hydrogen, such as mandatory usage targets for industries like steel, transportation, or chemicals, can drive off-take agreements and ensure market stability.
Mains PYQ:
Q Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (2021)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Olive Ridley Turtles
Why in the News?
Carcasses of Olive Ridley turtles have been found along the Visakhapatnam coast during their breeding season, raising concerns about their conservation.
About Olive Ridley Turtles:
| Details |
- Olive Ridley turtles are sea turtles known for their olive-colored carapace.
- They are carnivorous, primarily feeding on jellyfish, crustaceans, and mollusks.
- Unique mass nesting behavior (Arribada), where thousands of females lay eggs in synchronized waves on the same beach.
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| Their Habitat and Protection Status |
- Found in the warm waters of the Pacific, Atlantic, and Indian Oceans.
- Largest rookery (breeding colony) is at Gahirmatha Marine Sanctuary, Odisha, India.
- Other major nesting sites include Devi River mouth (discovered in 1981) and Rushikulya river mouth (discovered in 1994).
- Protection Status:
- IUCN Status: Vulnerable
- CITES: Appendix I (No international trade)
- Wildlife Protection Act, 1972: Schedule I (Highest level of protection)
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| Conservation Efforts |
- Project Olivia by Indian Coastguard to protect the Olive Ridley turtles, especially after the Gahirmatha rookery recognition.
- Legal protections and environmental regulations safeguard nesting sites and prevent poaching.
- Olive Ridley Protection Program ensures the safety of nests and hatchlings.
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PYQ:
[2015] Which one of the following is the national aquatic animal of India?
(a) Saltwater crocodile
(b) Olive ridley turtle
(c) Gangetic dolphin
(d) Gharial |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Telecom Technology Development Fund (TTDF) Program
Why in the News?
The Telecom Technology Development Fund (TTDF) has facilitated a collaboration between the Centre for Development of Telematics (C-DOT) and Trois Infotech on the development of “Face Recognition Using Drone” technology.
About Telecom Technology Development Fund (TTDF):
| Details |
- Launched on October 1, 2022 under the Universal Service Obligation Fund (USOF), Ministry of Telecommunications.
- Supports indigenous telecom technologies, especially for rural communication needs.
About USOF (Universal Service Obligation Fund)
- USOF was established in April 2002 under the Indian Telegraph (Amendment) Act 2003.
- Objective: To provide financial support for telecom services in rural and remote areas that are commercially unviable.
- A non-lapsable fund, with the levy amount credited for continuous use.
- Operates as an attached office of the Department of Telecom, headed by an administrator appointed by the Central Government.
- Initially focused on providing basic telecom services in rural areas at affordable prices.
- Expanded scope to include mobile services, broadband connectivity, and infrastructure development in rural and remote areas.
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| Aims and Objectives |
- Encourage Innovation: Create synergies across stakeholders (startups, R&D, academia) and focus on rural-specific telecom solutions.
- Bridge the Digital Divide: Provide affordable telecom solutions for rural areas and enhance connectivity.
- Intellectual Property Creation: Support R&D projects contributing to patentable technologies.
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| Key Features and Structural Mandate |
Funding Mechanism:
- Grants for Indian startups, research institutes, academia, and telecom companies for R&D on rural telecom solutions.
- Managed by Department of Telecommunications (DoT) with USOF as the administering body.
Features:
- Incentives for Startups: Provides financial incentives for telecom R&D projects from prototype to commercialization.
- Collaborative Framework: Promotes collaboration between stakeholders such as startups, telecom companies, universities, and R&D centers.
- PoC and Pilot Support: Encourages proof of concept testing and pilots to validate technological solutions.
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PYQ:
[2019] In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.?
- Ad Hoc Committees set up by the Parliament
- Parliamentary Department Related Standing Committees
- Finance Commission
- Financial Sector Legislative Reforms Commission
- NITI Aayog
Select the correct answer using the code given below:
(a) 1 and 2
(b) 1, 3 and 4
(c) 3, 4 and 5
(d) 2 and 5 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Features of the HOMW Rules
Why in the News?
The Ministry of Environment, Forest and Climate Change (MoEF&CC) has provided details of the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 to the Lok Sabha.
About Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016:
| Details |
Notified by the Ministry of Environment, Forest and Climate Change (MoEF&CC) under the Environment (Protection) Act, 1986.
Objective: Ensure safe storage, treatment, and disposal of hazardous wastes, minimizing harm to the environment and human health. |
| Features of the Rules |
Import Regulations:
1. Import of hazardous waste listed in Part A of Schedule III is permitted for recycling, recovery, reuse, and co-processing.
2. Import for disposal is strictly prohibited in India.
3. Import is allowed only for actual users (industries) with permission from MoEF&CC and a license from DGFT.
Illegal Imports:
1. Any import of hazardous waste without prior permission from MoEF&CC is illegal.
2. Legal action can be taken under the Indian Ports Act, 1908 or the Customs Act, 1962.
3. Ports and Customs Authorities are responsible for monitoring and taking action against illegal imports.
Import/Export of Waste:
1. No hazardous waste can be imported for final disposal into India.
2. The rules specify procedures for importing and exporting hazardous waste.
3. Exemptions are made for the export of silk waste and defective electrical/electronic components.
Wastes Prohibited for Import:
1. Waste edible fats and oils (animal/vegetable origin)
2. Household waste
3. Critical care medical equipment
4. Tyres for direct re-use
5. Plastic waste, including PET bottles
6. Electrical and electronic scrap
7. Other chemical wastes, especially in solvent form
Treatment, Storage, and Disposal Facilities:
1. The rules provide clear directions on how treatment, storage, and disposal facilities should be established.
2. SPCBs must approve layout of these facilities. |
| Powers and Functions of State Pollution Control Boards (SPCBs) |
- Duties Assigned to State Governments: Allocate space for recycling and pre-processing of hazardous waste, and implement skill development activities for worker safety.
- Annual Reports: State governments must submit reports on hazardous waste management to MoEFCC. SPCBs must submit an annual inventory of hazardous waste management activities to ensure compliance
- Monitoring and Compliance: SPCBs monitor adherence to rules and take action against violations.
- Treatment, Storage, and Disposal Facilities: SPCBs approve and monitor facilities for hazardous waste treatment, storage, and disposal.
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PYQ:
[2019] As per the Solid Waste Management Rules, 2016 in India, which one of the following statements is correct?
(a) Waste generator has to segregate waste into five categories.
(b) The Rules are applicable to notified urban local bodies, notified towns and all industrial townships only.
(c) The Rules provide for exact and elaborate criteria for the identification of sites for landfills and waste processing facilities.
(d) It is mandatory on the part of the waste generator that the waste generated in one district cannot be moved to another district. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Green Cover around Coalfields
Why in the News?
Coal & Lignite Public Sector Undertakings (PSUs) such as Coal India Limited (CIL), NLC India Limited (NLCIL), and Singareni Collieries Company Limited (SCCL) have implemented various innovative plantation techniques in addition to traditional methods to increase green cover in and around coalfields.
Achievements in Green Cover Creation:
- Coal & Lignite PSUs have successfully created green cover on 10,942 hectares of land as part of their plantation and bio-reclamation efforts over the last 5 years.
- The efforts are primarily focused on coal and lignite mining areas and surrounding regions.
Guidelines and EC Conditions
- The MoEF&CC sets out specific and general conditions for plantation in the Environmental Clearance (EC) of coal mining projects.
- Plantations are carried out on:
- Reclaimed degraded forest areas
- Non-forest lands and overburden dumps to ensure proper reclamation and regeneration of green cover.
- Under the guidance of the Ministry of Coal, 16 Eco-parks/Mine Tourism sites have been established over the last 5 years.
- These sites aim to:
- Promote environmental regeneration
- Encourage tourism and recreational activities in coal mining areas, boosting local economies and raising environmental awareness.
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Innovative techniques for enhancing Green Cover around Coalfields
- Three-tier plantation: A method involving planting different species at varying heights to create a layered canopy for enhanced biodiversity.
- Seed ball plantation: Seeds are encased in soil and compost balls and thrown in barren or degraded areas to promote natural growth.
- Miyawaki plantation: A high-density plantation technique aimed at creating a dense, self-sustaining forest in a shorter period.
- High-tech cultivation: Utilizing modern agricultural techniques for efficient plantation and maintenance.
- Bamboo plantation: Focusing on bamboo as a fast-growing and environmentally beneficial plant for reclamation.
- Drip irrigation on overburden dumps: Use of efficient water management systems to promote plantation on areas like overburden dumps.
PYQ:
[2019] Consider the following statements:
- As per law, the Compensatory Afforestation Fund Management and Planning Authority exists at both National and State levels.
- People’s participation is mandatory in the compensatory afforestation programmes carried out under the Compensatory Afforestation Fund Act, 2016.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Employees’ Pension Scheme (EPS)
Why in the News?
The Parliamentary Standing Committee on Labour has recommended increasing the minimum pension of ₹1,000 paid by the Employees’ Provident Fund Organisation (EPFO) under the Employees’ Pension Scheme (EPS).
About the Employees’ Pension Scheme (EPS):
| Details |
- Introduced in 1995 by the Employees Provident Fund Organisation (EPFO) under the Ministry of Labour and Employment.
- Provides pension benefits to employees in the organized sector.
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| Aims and Objectives |
- To provide pension benefits to employees in the organized sector.
- Ensures financial security for employees post-retirement or in case of disability or death.
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| Features and Significance |
- Employee and Employer Contribution: Both contribute 12% of the salary towards the EPF.
- Employer’s Contribution: 8.33% of the employer’s contribution goes towards the pension fund.
- Union Government Contribution: 1.16% of the employee’s basic salary is contributed to the pension fund.
- Pension Fund Setup: The fund is created by allocating 8.33% of the employer’s contribution from the EPF corpus.
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| Structural Mandate and Implementation |
Supreme Court in November 2022, the court upheld the Employees’ Pension (Amendment) Scheme, 2014, extending the deadline for opting for the new scheme by 4 months.
- Pre-Amendment Scheme: Pensionable salary was based on the average salary of the last 12 months prior to exiting the pension fund.
- Post-Amendment Scheme (2014): Pensionable salary based on average salary of the last 60 months (5 years).
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| Eligibility Criteria |
- Applies to employees whose basic salary exceeds ₹15,000 per month.
- Employees who are members of the Employees’ Provident Fund (EPF) and meet the contribution requirements are eligible for the scheme.
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PYQ:
[2021] With reference to casual workers employed in India, consider the following statements:
1. All casual workers are entitled for Employees Provident Fund coverage.
2. All casual workers are entitled for regular working hours and overtime payment.
3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.
Which of the above statements are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3 |
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