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Upholding the right to repair

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Consumer Protection Act, 2019

Mains level: Paper 2- Right to repair

Context

Apple recently announced that consumers will have the right to purchase spare components of their products, following an order of the Federal Trade Commission of the United States, which directs manufacturers to remedy unfair anti-competitive practice and asks them to make sure that consumers can make repairs, either themselves or by a third-party agency. The momentum is, however, not so strong in India.

Challenges in repairing of electronic goods

  • Repairing is becoming unreasonably expensive or pretty much impossible because of technology becoming obsolete.
  • Incompatibility: Companies avoid the publication of manuals that can help users make repairs easily.
  • No repair manual: The absence of repair manuals means that manufacturers hold near-monopoly over repair workshops that charge consumers exorbitant prices.
  • Incompatibility: Manufacturers have proprietary control over spare parts and most firms refuse to make their products compatible with those of other firms.
  • Planned obsolescence results in products breaking down too soon and buying a replacement is often cheaper and easier than repairing them.
  • Big companies often deploy mechanisms that practically forbid other enterprises to repair their products.
  • Digital warranty cards, for instance, ensure that by getting a product from a “non-recognised” outfit, a customer loses the right to claim a warranty.

Right to repair

  • The rationale behind the “right to repair” is that the individual who purchases a product must own it completely.
  • This implies that apart from being able to use the product, consumers must be able to repair and modify the product the way they want to.
  • Monopoly on repair processes infringes the customer’s’ “right to choose” recognised by the Consumer Protection Act, 2019. 
  •  In Shamsher Kataria v Honda Siel Cars India Ltd (2017), for instance, the Competition Commission of India ruled that restricting the access of independent automobile repair units to spare parts by way of an end-user license agreement was anti-competitive.

International practices

  • Many countries have taken initiatives, adopted policies and even tried to enact legislation that recognise the “right to repair” to reduce electronic waste.
  • Some jurisdictions offer limited scope for exercising the right to repair.
  • For instance, under the Australian Consumer Law consumers have a right to request that certain goods be repaired if they break too easily or do not work properly.
  • The Massachusetts Motor Vehicle Owners’ Right to Repair Act, 2012 requires automobile manufacturers to provide spare parts and diagnostics to buyers and even independent third-party mechanics.
  • The UK also introduced the path-breaking “right to repair” in 2021 that makes it legally binding on manufacturers to provide spare parts.

Way forward

  • Well-drafted legislation will not only uphold the right to repair but may aid in striking a much-needed balance between intellectual property and competitive laws in the country.

Conclusion

If people want to fix things in a timely, safe and cost-effective way, whether by doing it themselves or taking it
to a service centre of their choice, providing access to spare parts and information is imperative.

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Foreign Policy Watch: India – EU

India-UK relations: A new shine to old ties

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- India-UK ties

Context

As Prime Minister Narendra Modi hosts British premier Boris Johnson this week in India, the moment is ripe to turn the expansive new possibilities — in trade, investment, high technology, defence, and regional cooperation— into concrete outcomes.

Background of the India-UK ties and  paradoxes

  • Legacies of colonialism: The bitter legacies of colonialism had made it impossible for the two sides to pursue a sensible relationship in the past.
  • India’s post-colonial engagement with Britain has been riddled with multiple paradoxes.
  • 1] India’s post-post colonial resentment and UK’s claim for special role: Delhi’s lingering post-colonial resentments and London’s unacceptable claim for a special role in the Subcontinent generated unending friction.
  • The consequences of Partition and the Cold War made it harder for Delhi and London to construct a sustainable partnership.
  • The important role played by the US: It was the US that first recognised India’s rapidly-growing relative weight in the international system.
  • At the turn of the millennium, Washington unveiled a policy of assisting India’s rise.
  • This was based on a bipartisan American consensus that a stronger India will serve US interests in Asia and the world.
  • Over the last two decades, it has led to a quick transformation of US relations with India.
  • 2] Washington is setting the pace for Delhi’s relationship with London:  At the dawn of Independence, India saw London as the natural interlocutor with an unfamiliar Washington.
  • Today it is Washington that is setting the pace for Delhi’s relationship with London.
  •  3] China’s role in shaping India’s relations with the West: For Washington, the strategic commitment to assist India’s rise was rooted in the recognition of the dangers of a China-dominated Asia.
  • London in the last two decades was moving in the other direction — a full embrace of Beijing.
  • Once the American deep state decided to confront Chinese power in the late 2010s, London had to extricate itself from the Chinese Communist Party’s powerful spell.
  • As the US unveiled a new Asian strategy, Britain followed with its own “Indo-Pacific tilt” that helped secure the region against China’s muscular policies.
  • 4] Historic tilt towards Pakistan: Unlike the US and France, which are committed to an “India first” strategy in South Asia, Britain remains torn between its new enthusiasm for India and the inertia of its historic tilt towards Pakistan.
  • But India is confident that Pakistan’s relative decline in the region is bound to make it a less weighty factor in India’s bilateral relations with Britain.
  • The question of Pakistan brings us to the fourth paradox—the domestic dynamics of Britain that have tended to sour ties with India.
  • Delhi has figured out that the interconnected politics of India and Britain — shaped by the large South Asian diaspora of nearly four million — can be cut both ways.
  • 5] Making best of historic ties:  If the Tories are romantic about the Raj, nationalists in India bristle at the British imperial connection.
  • Yet, together they are constructing a new relationship between India and Britain.

Better outlook for bilateral ties

  • As the two sides make a determined effort to transcend the paradoxes, the regional and international circumstances provide a new basis for mutually beneficial engagement.
  • Over the last couple of years, Delhi and London have begun a promising and pragmatic engagement devoid of sentiment and resentment.
  • Having walked out of Europe, Britain needs all the partners it can find and a rising India is naturally among the top political and economic priorities.
  • Delhi meanwhile has become supremely self-assured in dealing with London.
  • With the Indian economy set to become larger than Britain’s in the next couple of years, Delhi is no longer defensive about engaging Britain.
  • Even more important, Delhi recognises the value of a deep strategic partnership with London.

Conclusion

The UK has a significant international military presence and wide-ranging political influence. Realists in Delhi are trying to leverage these British strengths for India’s strategic benefit.

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Real Estate Industry

RERA

Note4Students

From UPSC perspective, the following things are important :

Prelims level: RERA

Mains level: Real Estate issues

The Supreme Court has asked the Chief Secretaries of the States to respond to queries raised by the Centre on the implementation of rules framed under the Real Estate (Regulation and Development) (RERA) Act, 2016 in their respective jurisdictions.

What is RERA, 2016?

  • The Real Estate (Regulation and Development) Act, 2016 seeks to protect home-buyers as well as help boost investments in the real estate industry.
  • It establishes a Real Estate Regulatory Authority- RERA in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute resolution.
  • It was enacted under Entry 6 and 7 (dealing with contracts and the transfer of property) of the Concurrent List.
  • It is followed by the principle “buyer is the king and builders will have to ensure compliances to avoid punishment”.
  • Its main objective is to reduce delay in the work or timely delivery of the project without compromising the quality.

Objectives of this Act

It has the following objectives:

  • To protect the interest of the allottees and ensure their responsibility
  • To maintain transparency and reduce the chances of fraud
  • To implement Pan-India standardization and bring about professionalism
  • To enhance the flow of correct information between the home buyers and the sellers
  • To impose greater responsibilities on both the builders and the investors
  • To enhance the reliability of the sector and thereby increase confidence amongst the investors

Key Provisions of RERA Act

  • Compulsory registration: According to the central act, every real estate project (where the total area to be developed exceeds 500 sq mtrs or more than 8 apartments is proposed to be developed in any phase), must be registered with its respective state’s RERA.
  • Establishment of state level regulatory authorities: It provides for State governments to establish more than one regulatory authority such as RERA to:
  1. Register and maintain a database of real estate projects; publish it on its website for public viewing
  2. Protection of interest of promoters, buyers and real estate agents
  3. Development of sustainable and affordable housing
  4. Render advice to the government and ensuring compliance with its Regulations and the Act
  • Establishment of Real Estate Appellate Tribunal: Decisions of RERAs can be appealed in these tribunals.
  • Mandatory Registration: All projects with plot size of a minimum 500 sq.mt or eight apartments need to be registered with Regulatory Authorities.
  • Deposits: Developers needs to keep 70% of the money collected from a buyer in a temporary pass through account held by a third party (escrow account) to meet the construction cost of the project.
  • Liability of the developer: A developer’s liability to repair structural defects would be for 5 years.
  • Cap on Advance Payments: A promoter cannot accept more than 10% of the cost of the plot, apartment or building as an advance payment or an application fee from a person without first entering into an agreement for sale
  • Carpet Area over super built-up: Clearly defines Carpet Area as net usable floor area of flat. Buyers will be charged for the carpet area and not super built-up area.
  • Punishment for non-compliance: Imprisonment of up to three years for developers and up to one year in case of agents and buyers for violation of orders of Appellate Tribunals and Regulatory Authorities.

Which projects can get RERA approval?

  • Commercial and residential projects including plotted development.
  • Projects measuring more than 500 sq mts or 8 units.
  • Projects without Completion Certificate, before the commencement of the Act.
  • The project is only for the purpose of renovation/repair / re-development which does not involve re-allotment and marketing, advertising, selling or new allotment of any apartments, plot or building in the real estate project, will not come under RERA.
  • Each phase is to be treated as standalone real estate project requiring fresh registration.

Benefits offered by the RERA Act

Industry

Developer

Buyer

Agents

  • Governance and transparency
  • Project efficiency and robust project delivery
  • Standardization and quality
  • Enhance the confidence of investors
  • Attract higher investments and PE funding
  • Regulated Environment
  • Common and best practices
  • Increase efficiency
  • Consolidation of sector
  • Corporate branding
  • Higher investment
  • Increase in organized funding
  • Significant buyers protection
  • Quality products and timely delivery
  • Balanced agreements and treatment
  • Transparency – sale based on carpet area
  • Safety of money and transparency on utilization
  • Consolidation of the sector (due to mandatory state registration)
  • Increased transparency
  • Increased efficiency
  • Minimum litigation by adopting best practices

 

 

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WTO and India

The Process of Cartelisation

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Cartel, Cartelization

Mains level: Read the attached story

This newscard is an excerpt from the original article published in TH.

What is a Cartel?

  • According to CCI, a “Cartel includes an association of producers, sellers, distributors, traders or service providers who, by agreement amongst themselves, limit, control or attempt to control the production, distribution, sale or price of, or, trade in goods or provision of services”.
  • The three common components of a cartel are:
  1. an agreement
  2. between competitors
  3. to restrict competition

What is Cartelization?

  • Cartelization is when enterprises collude to fix prices, indulge in bid-rigging, or share customers, etc. But when prices are controlled by the government under law, that is not cartelization.
  • The Competition Act contains strong provisions against cartels.
  • It also has the leniency provision to incentivize a party to a cartel to break away and report to the Commission, and thereby expect total or partial leniency.
  • This has proved a highly effective tool against cartels worldwide.

Philosophy behind

  • Cartels, which involve a group of businesses colluding to keep prices high, have been viewed by economists as a significant threat to the market economy.
  • When businesses cooperate with each other rather than compete against each other, there could be many adverse consequences to consumers.
  • For one, consumers will have to pay higher prices for goods and services.
  • It should be noted that the way cartels keep prices high is by limiting the supply of their output. Further, in the absence of any threat from competition, cartels also have very little reason to innovate or cater to consumers in better ways.
  • In other words, they essentially act like a monopoly.
  • The Organization of the Petroleum Exporting Countries (OPEC) is the most well-known international cartel that influences the price of oil globally through coordinated efforts to limit supply.

How do they work?

  • Four categories of conduct are commonly identified across jurisdictions (countries). These are: price-fixing, output restrictions, market allocation and, bid-rigging
  • In sum, participants in hard-core cartels agree to insulate themselves from the rigors of a competitive marketplace, substituting cooperation for competition.

How do cartels hurt?

  • They not only directly hurt the consumers but also, indirectly, undermine overall economic efficiency and innovations.
  • A successful cartel raises the price above the competitive level and reduces output.
  • Consumers choose either not to pay the higher price for some or all of the cartelized product that they desire, thus forgoing the product, or they pay the cartel price and thereby unknowingly transfer wealth to the cartel operators.

Are there provisions in the Competition Act against monopolistic prices?

  • There are provisions in the Competition Act against abuse of dominance.
  • One of the abuses is when a dominant enterprise “directly or indirectly imposes unfair or discriminatory prices” in the purchase or sale of goods or services.
  • Thus, excessive pricing by a dominant enterprise could, in certain conditions, be regarded as abuse and, therefore, subject to investigation by the Competition Commission if it were fully functional.
  • However, where pricing is a result of normal supply and demand, the Competition Commission may have no role.

What is the penalty for cartelization?

  • The Competition Act calls for a penalty on each member of the cartel, which is up to three times its profit for each year of anti-competitive behavior, or 10% of turnover for each year of its continuance, whichever is higher.
  • However, in case of a leniency petition, CCI can waive the penalty depending on the timing and usefulness of the disclosure  and  full cooperation  in  the  probe.

How might cartels be worse than monopolies?

  • Monopolies are bad for both individual consumer interests as well as society at large.
  • Monopolist completely dominates the concerned market and, more often than not, abuse this dominance either in the form of charging higher than warranted prices or by providing lower than the warranted quality of the good or service in question.

How to stop the spread of cartelization?

  • Strong deterrence to those cartels that are found guilty of being one.
  • Typically this takes the form of a monetary penalty that exceeds the gains amassed by the cartel and it is not always easy to ascertain the exact gains from cartelization.
  • The threat of stringent penalties can be used in conjunction with providing leniency — as was done in the beer case.

Back2Basics: Competition Commission of India (CCI)

  • The CCI is the chief national competition regulator in India.
  • It is a statutory body within the Ministry of Corporate Affairs.
  • It is responsible for enforcing The Competition Act, 2002 in order to promote competition and prevent activities that have an appreciable adverse effect on competition in India.

 

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Foreign Policy Watch: United Nations

What is the UK-Rwanda Asylum Plan?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Location of Rwanda, English Channel

Mains level: Global refugee crisis

The United Kingdom has signed a deal with Rwanda to send some asylum seekers to the East African nation — a move that PM Boris Johnson said will “save countless lives” from human trafficking.

Immigrants crisis in UK

  • Since 2018, there has been a marked rise in the number of refugees and asylum seekers that undertake dangerous crossings between Calais in France and Dover in England.
  • Most such migrants and asylum seekers hail from war-torn countries like Sudan, Afghanistan, and Yemen, or developing countries like Iran and Iraq.
  • The Britain that has adopted a hardline stance on illegal immigration, these crossings constitute an immigration crisis.
  • The Nationality and Borders Bill, 2021, which is still under consideration in the UK, allows the British government to strip anyone’s citizenship without notice under “exceptional circumstances”.
  • The Rwanda deal is the operationalization of one objective in the Bill which is to deter illegal entry into the United Kingdom.

What is the Rwanda Deal?

  • The UK and Rwanda Migration and Economic Development Partnership or the Rwanda Deal is a Memorandum of Understanding (MoU) signed between the two governments.
  • Under this deal, Rwanda will commit to taking in asylum seekers who arrive in the UK on or after January 1, 2022, using illegally facilitated and unlawful cross border migration.
  • Rwanda will function as the holding centre where asylum applicants will wait while the Rwandan government makes decisions about their asylum and resettlement petitions in Rwanda.
  • Rwanda will, on its part, accommodate anyone who is not a minor and does not have a criminal record.

Rationale of the deal

  • The deal aims to combat “people smugglers”, who often charge exorbitant prices from vulnerable migrants to put them on unseaworthy boats from France to England that often lead to mass drownings.
  • The UK contends that this solution to the migrant issue is humane and meant to target the gangs that run these illegal crossings.

What will the scheme cost the UK?

  • The UK will pay Rwanda £120 million as part of an “economic transformation and integration fund” and will also bear the operational costs along with an, as yet undetermined, amount for each migrant.
  • Currently, the UK pays £4.7 million per day to accommodate approximately 25,000 asylum seekers.
  • At the end of 2021, this amounted to £430 million annually with a projected increase of £100 million in 2022.
  • The Rwanda Deal is predicted to reduce these costs by outsourcing the hosting of such migrants to a third country.

Will the Rwanda Deal solve the problem of illegal immigration?

  • This deal will be implemented in a matter of weeks unless it is challenged and stayed by British courts.
  • While Boris Johnson’s government is undoubtedly bracing for such legal challenges, it remains unclear if the Rwanda Deal will solve the problem of unlawful crossings.
  • Evidence from similar experiences indicates that such policies do not fully combat “people smuggling”.

Criticisms of the deal

  • Several activists, refugee and human rights organizations have strongly opposed the new scheme.
  • There are dangers of transferring refugees and asylum seekers to third countries without sufficient safeguards.
  • The refugees are traded like commodities and transferred abroad for processing.
  • Such arrangements simply shift asylum responsibilities, evade international obligations, and are contrary to the letter and spirit of the Refugee Convention.
  • Rwanda also has a known track record of extrajudicial killings, suspicious deaths in custody, unlawful or arbitrary detention, torture, and abusive prosecutions, particularly targeting critics and dissidents.

Do any other countries send asylum seekers overseas?

  • Yes, several other countries — including Australia, Israel and Denmark — have been sending asylum seekers overseas.
  • Australia has been making full use of offshore detention centres since 2001.
  • Israel, too, chose to deal with a growing influx of asylum seekers and illegal immigrants from places like Sudan and Eritrea by striking deals with third countries.
  • Those rejected for asylum were given the choice of returning to their home country or accepting $3,500 and a plane ticket to one of the third countries.
  • They faced the threat of arrest if they chose to remain in Israel.

 

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AYUSH – Indian Medicine System

WHO & Traditional Medicine

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Traditional Medicines

Mains level: Read the attached story

PM Modi, along with World Health Organization (WHO) Director-General Dr Tedros Ghebreyesus, will perform the groundbreaking ceremony for the first-of-its-kind WHO Global Centre for Traditional Medicine (GCTM) in Jamnagar, Gujarat.

What is Traditional Medicine?

  • The WHO describes traditional medicine as the total sum of the “knowledge, skills and practices indigenous and different cultures have used over time to maintain health and prevent, diagnose and treat physical and mental illness”.
  • Its reach encompasses ancient practices such as acupuncture, ayurvedic medicine and herbal mixtures as well as modern medicines.
  • According to WHO estimates, 80% of the world’s population uses traditional medicine.

Traditional medicine in India

  • It is often defined as including practices and therapies — such as Yoga, Ayurveda, Siddha — that have been part of Indian tradition historically, as well as others — such as homeopathy — that became part of Indian tradition over the years.
  • Ayurveda and yoga are practised widely across the country.
  • The Siddha system is followed predominantly in Tamil Nadu and Kerala.
  • The Sowa-Rigpa System is practised mainly in Leh-Ladakh and Himalayan regions such as Sikkim, Arunachal Pradesh, Darjeeling, Lahaul & Spiti.

What will the GCTM be about?

  • The GCTM will aim to focus on evidence-based research, innovation, and data analysis to optimise the contribution of traditional medicine to global health.
  • Its main focus will to develop norms, standards and guidelines in technical areas relating to traditional medicine.
  • It will seek to set policies and standards on traditional medicine products and help countries create a comprehensive, safe, and high-quality health system.
  • The GCTM will support efforts to implement the WHO’s Traditional Medicine Strategy (2014-23).
  • It will serve as the hub, and focus on building a “solid evidence base” for policies and “help countries integrate it as appropriate into their health systems”.

Why has the WHO felt the need to advance knowledge of traditional medicine?

  • Almost all WHO members have reported widespread use of traditional medicine.
  • These member states have asked for its support in creating a body of reliable evidence and data on traditional medicine practices and products.
  • The WHO has found that the national health systems and strategies do not yet fully integrate traditional medicine workers, accredited courses and health facilities.
  • It has stressed the need to conserve biodiversity and sustainability as about 40% of approved pharmaceutical products today derive from natural substances.
  • It has referred to modernization of the ways traditional medicine is being studied. Artificial intelligence is now used to map evidence and trends in traditional medicine.

 

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Modern Indian History-Events and Personalities

Who was Guru Tegh Bahadur?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Guru Teg Bahadur

Mains level: NA

The government will celebrate the 400th birth anniversary of Guru Tegh Bahadur with a two-day event at the Red Fort.

 Guru Tegh Bahadur (1621–1675)

  • Guru Tegh Bahadur was the ninth of ten Gurus of the Sikh religion. He was born at Amritsar in 1621 and was the youngest son of Guru Hargobind.
  • His term as Guru ran from 1665 to 1675. One hundred and fifteen of his hymns are in Guru Granth Sahib.
  • There are several accounts explaining the motive behind the assassination of Guru Tegh Bahadur on Aurangzeb’s orders.
  • He stood up for the rights of Kashmiri Pandits who approached him against religious persecution by Aurangzeb.
  • He was publicly executed in 1675 on the orders of Mughal emperor Aurangzeb in Delhi for himself refusing Mughal rulers and defying them.
  • Gurudwara Sis Ganj Sahib and Gurdwara Rakab Ganj Sahib in Delhi mark the places of execution and cremation of his body.

Impact of his martyrdom

  • The execution hardened the resolve of Sikhs against religious oppression and persecution.
  • His martyrdom helped all Sikh Panths consolidate to make the protection of human rights central to its Sikh identity.
  • Inspired by him, his nine-year-old son, Guru Gobind Singh Ji, eventually organized the Sikh group into a distinct, formal, symbol-patterned community that came to be known as Khalsa (Martial) identity.
  • In the words of Noel King of the University of California, “Guru Teg Bahadur’s martyrdom was the first-ever martyrdom for human rights in the world.
  • He is fondly remembered as ‘Hind di Chaadar’.

Try this PYQ:

Q.Consider the following Bhakti Saints:

  1. Dadu Dayal
  2. Guru Nanak
  3. Tyagaraja

Who among the above was/were preaching when the Lodi dynasty fell and Babur took over?

(a) 1 and 3

(b) 2 only

(c) 2 and 3

(d) 1 and 2

 

 

Post your answers here.

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Festivals, Dances, Theatre, Literature, Art in News

Festivals in news: Karaga Festival

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Karaga Festival

Mains level: NA

The centuries-old Karaga (temple fair) festival was recently held at the Dharmaraya Swamy Temple in Bengaluru.

Karaga Festival

  • It is celebrated annually in the Chaitra month (March/April) according to the Hindu calendar.
  • The festival has found its roots in the epic Mahabharata.
  • It honours Draupadi as the ideal woman and Goddess Shakti.
  • The word ‘Karaga’ translates to an earthen pot, supporting a floral pyramid and an idol of Goddess.
  • The Karaga is carried on the head of the bearer without touching it.
  • The carrier wears a woman’s attire with bangles, mangal-sutra, and vermillion on his forehead.

Cultural significance of Karaga

  • The Karaga procession makes a customary halt at Astana e-Hazrath Tawakkal Mastan Shah Saharwardi Dargah to pay obeisance to Tawakkal Mastan.
  • The Dargah, a symbol of syncretic Sufism, has been taken care by the Muzavvar family for several generations.
  • According to them, the history of the Dargah goes back to at least 300 years when Tawakkal Mastan, who came to Bengaluru with his horses looking for business opportunities, was adored as a saint.
  • Hyder Ali, who was the ruler then, was a patron of Mastak for his good deeds.

 

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A fatal friendship with Beijing

Note4Students

From UPSC perspective, the following things are important :

Prelims level: BRI

Mains level: Paper 2- Debt trap diplomacy

Context

China’s intervention has proved disastrous for the economies of Myanmar, Sri Lanka and Pakistan.

China-Myanmar relations and its implications

  • Myanmar, China’s closest neighbour with a long history of cross border trade, was the first country to voluntarily turn towards Beijing, from 1988, when the State Law and Order Restoration Council (SLORC) took over the reins of government.
  • World sanctions followed, but Beijing reassured the generals of its continued support and in 1989, signed a treaty of trade and cooperation that made China the sole supporter of the illegitimate military government.
  • The strong western sanctions after 2007, made China virtually its sole trading partner.
  • The link with China became essential for the regime’s survival but did little to increase economic prosperity.
  • Wood alone accounts for about 70 per cent of Myanmar’s exports to China.
  • It’s clear that China is stripping bare Myanmar’s centuries-old teak forests.

Implications for Pakistan

  • In 2012,  Pakistan signed on to the China Pakistan Economic Corridor.
  • New Delhi and Washington imagined wrongly that the CPEC would lead to a major People’s Liberation Army-Navy (PLAN) expansion into the Indian Ocean through Gwadar, which even now is a largely disused port.
  •  As a conservative IMF estimate put it, Islamabad’s poor management of the economy and reckless borrowing has put its immediate financial needs (2022) at $51 billion.
  • Projects chosen are unviable like the Gwadar port and the Lahore Metro and attracted huge public criticism. The CPEC was put on hold and rebooted.
  • The IMF warned Islamabad of the CPEC repayment boosting the current account deficit, forcing Pakistan to cut Chinese interest payments for 10 years.
  • The CPEC has been a humbling experience for China and an economic disaster for Pakistan.

Implications for Sri Lanka

  • Against all economic surveys and advice, the Hambantota port was built, it floundered and Sri Lanka transferred the land as equity to China for 99 years.
  • From 2012 to 2016, China accounted for 30 per cent of all FDI to Sri Lanka, becoming the top source of foreign investment
  • Today China is funding 50 projects in the country, involving more than $1 billion, including the Colombo Port and the Lakvijaya thermal power plant.
  • Today, the Sri Lankan economy is in complete meltdown, with China holding the largest amount of Sri Lankan debt.
  • Private banks have run out of funds to finance imports. Its main sources of revenue, tourism and remittances, have dried up, and the government is in a crisis.

Conclusion

The recourse to availing Chinese money by Myanmar, Pakistan and Sri Lanka has led to a feeling of hubris among the leaders, inducing them to take bad economic decisions in the perception that Beijing is footing the bills.

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Cyber Security – CERTs, Policy, etc

Status of India’s National Cyber Security Strategy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Read the attached story

Recently, Chinese state-sponsored hackers targeted Indian electricity distribution centres near Ladakh.

Amid a surge in cyberattacks on India’s networks, the Centre is yet to implement the National Cyber Security Strategy which has been in the works since 2020.

Recent trends of Cyber-attacks in India

  • As per American cybersecurity firm Palo Alto Networks’ 2021 report, Maharashtra was the most targeted State in India — facing 42% of all ransomware attacks.
  • India is among the more economically profitable regions for hacker groups and hence these hackers ask Indian firms to pay a ransom, usually using cryptocurrencies, in order to regain access to the data.
  • One in four Indian organisations suffered a ransomware attack in 2021.
  • Indian organisations witnessed a 218% increase in ransomware — higher than the global average of 21%.
  • Software and services (26%), capital goods (14%) and the public sector (9%) were among the most targeted sectors.

Increase in such attacks has brought to light the urgent need for strengthening India’s cybersecurity.

What is the National Cyber Security Strategy?

Conceptualised by the Data Security Council of India (DSCI), the report focuses on 21 areas to ensure a safe, secure, trusted, resilient, and vibrant cyberspace for India.

The main sectors of focus of the report are:

  • Large scale digitisation of public services: There needs to be a focus on security in the early stages of design in all digitisation initiatives and for developing institutional capability for assessment, evaluation, certification, and rating of core devices.
  • Supply chain security: There should be robust monitoring and mapping of the supply chain of the Integrated circuits (ICT) and electronics products. Product testing and certification needs to be scaled up, and the country’s semiconductor design capabilities must be leveraged globally.
  • Critical information infrastructure protection: The supervisory control and data acquisition (SCADA) security should be integrated with enterprise security. A repository of vulnerabilities should also be maintained.
  • Digital payments: There should be mapping and modelling of devices and platform deployed, transacting entities, payment flows, interfaces and data exchange as well as threat research and sharing of threat intelligence.
  • State-level cyber security: State-level cybersecurity policies and guidelines for security architecture, operations, and governance need to be developed.

What steps does the report suggest?

To implement cybersecurity in the above-listed focus areas, the report lists the following recommendations:

  • Budgetary provisions: A minimum allocation of 0.25% of the annual budget, which can be raised up to 1% has been recommended to be set aside for cyber security.
  • Ministry-wise allocation: In terms of separate ministries and agencies, 15-20% of the IT/technology expenditure should be earmarked for cybersecurity.
  • Setting up a Fund of Funds: The report also suggests setting up a Fund of Funds for cybersecurity and to provide central funding to States to build capabilities in the same field.
  • R&D, skill-building and technology development: The report suggests investing in modernisation and digitisation of ICTs, setting up a short and long term agenda for cyber security via outcome-based programs and providing investments in deep-tech cyber security innovation.
  • National framework for certifications: Furthermore, a national framework should be devised in collaboration with institutions like the National Skill Development Corporation (NSDC) and ISEA (Information Security Education and Awareness) to provide global professional certifications in security.
  • Creating a ‘cyber security services’: The DSCI further recommends creating a ‘cyber security services’ with cadre chosen from the Indian Engineering Services.
  • Crisis management: For adequate preparation to handle crisis, the DSCI recommends holding cybersecurity drills which include real-life scenarios with their ramifications. In critical sectors, simulation exercises for cross-border scenarios must be held on an inter-country basis.
  • Cyber insurance: Cyber insurance being a yet to be researched field, must have an actuarial science to address cybersecurity risks in business and technology scenarios as well as calculate threat exposures.
  • Cyber diplomacy: Cyber diplomacy plays a huge role in shaping India’s global relations. To further better diplomacy, the government should promote brand India as a responsible player in cyber security and also create ‘cyber envoys’ for the key countries/regions.
  • Cybercrime investigation: It also suggests charting a five-year roadmap factoring possible technology transformation, setting up exclusive courts to deal with cybercrimes and remove backlog of cybercrimes by increasing centres providing opinion related to digital evidence under section 79A of the IT act.
  • Advanced forensic training: Moreover, the DSCI suggests advanced forensic training for agencies to keep up in the age of AI/ML, blockchain, IoT, cloud, automation.
  • Cooperation among agencies: Law enforcement and other agencies should partner with their counterparts abroad to seek information of service providers overseas.

Progress in its implementation

  • The Centre has formulated a draft National Cyber Security Strategy 2021 which holistically looks at addressing the issues of security of national cyberspace.
  • Without mentioning a deadline for its implementation, the Centre added that it had no plans as of yet to coordinate with other countries to develop a global legal framework on cyber terrorism.

Way forward

  • India has to contend with the importance and necessity of cyber offence as much as cyber defence.
  • As of today, India’s primary or possibly only response measures appear to be defensive.
  • India has to also invest in more offensive cyber means as a response.

 

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Black Money – Domestic and International Efforts

The Functioning of the Enforcement Directorate (ED)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Enforcement Directorate, PMLA

Mains level: Read the attached story

The Enforcement Directorate (ED) is in the news now and often.

About Enforcement Directorate (ED)

  • It goes back to May 1, 1956, when an ‘Enforcement Unit was formed in the Department of Economic Affairs.
  • It then aimed for handling Exchange Control Laws violations under the Foreign Exchange Regulation Act (FERA).
  • The ED today is a multi-dimensional organisation investigating economic offences under the Prevention of Money Laundering Act (PMLA), Fugitive Economic Offenders Act, Foreign Exchange Management Act and FERA.

From where does the ED get its powers?

  • When proceeds of crime (property/money) are generated, the best way to save that money is by parking it somewhere, so one is not answerable to anyone in the country.
  • Therefore, there was a need to control and prevent the laundering of money.
  • The PMLA was brought in for this exact reason in 2002, but was enacted only in 2005.
  • The objective was to prevent parking of the money outside India and to trace out the layering and the trail of money.
  • So as per the Act, the ED got its power to investigate under Sections 48 (authorities under act) and 49 (appointment and powers of authorities and other officers).

At what stage does the ED step in when a crime is committed?

  • Whenever any offence is registered by a local police station, which has generated proceeds of crime over and above ₹1 crore, the investigating police officer forwards the details to the ED.
  • Alternately, if the offence comes under the knowledge of the Central agency, they can then call for the First Information Report (FIR) or the chargesheet if it has been filed directly by police officials.
  • This will be done to find out if any laundering has taken place.

What differentiates the probe between the local police and officers of the ED?

Case study:

  • If a theft has been committed in a nationalised bank, the local police station will first investigate the crime.
  • If it is learnt that the founder of the bank took all the money and kept it in his house, without being spent or used, then the crime is only theft and the ED won’t interfere because the amount has already been seized.
  • But if the amount which has been stolen is used after four years to purchase some properties, then the ill-gotten money is brought back in the market.
  • Or if the money is given to someone else to buy properties in different parts of the country, then there is ‘laundering’ of money.
  • Hence the ED will need to step in and look into the layering and attachment of properties to recover the money.
  • If jewellery costing ₹1 crore is stolen, police officers will investigate the theft. The ED, however, will attach assets of the accused to recover the amount of ₹1 crore.

What are the other roles and functions of the ED?

  • The ED carries out search (property) and seizure (money/documents) after it has decided that the money has been laundered, under Section 16 (power of survey) and Section 17 (search and seizure) of the PMLA.
  • On the basis of that, the authorities will decide if arrest is needed as per Section 19 (power of arrest).
  • Under Section 50, the ED can also directly carry out search and seizure without calling the person for questioning.
  • It is not necessary to summon the person first and then start with the search and seizure.
  • If the person is arrested, the ED gets 60 days to file the prosecution complaint (chargesheet) as the punishment under PMLA doesn’t go beyond seven years.
  • If no one is arrested and only the property is attached, then the prosecution complaint along with attachment order is to be submitted before the adjudicating authority within 60 days.

Can the ED investigate cases of money laundering retrospectively?

  • If an ill-gotten property is acquired before the year 2005 (when the law was brought in) and disposed off, then there is no case under PMLA.
  • But if proceeds of the crime were possessed before 2005, kept in storage, and used after 2005 by buying properties, the colour of the money is still black and the person is liable to be prosecuted under PMLA.
  • Under Section 3 of PMLA, a person shall be guilty of money-laundering, if such person is found to have directly or indirectly attempted to indulge or knowingly assist a party involved in one or more of the following activities:
  • Concealment; possession; acquisition; use; or projecting as untainted property; or claiming as untainted property in any manner etc.

 

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Judicial Pendency

Retirement spree in SC may affect efforts to scale down pendency

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Resolving judicial pendency

The retirements in the topmost rung of the judiciary in 2022 will encompass changes in the powerful Supreme Court Collegium and see two new Chief Justices in a span of months.

Why in news?

  • The retirements come at a time when the court is in the process of steadying itself after particularly brutal waves of the pandemic.

Pendency in Supreme Court

  • The Supreme Court’s statistics show that 70,362 cases are pending with it as on April 1, 2022.
  • Over 19% of them are not ready to be placed before a Bench for judicial hearing as they have not completed the required preliminaries.
  • While 52,110 are admission matters, 18,522 are regular hearing cases.
  • The number of Constitution Bench cases (both main and connected matters) totals 422.

General scenario: Pendency of Cases

  • India’s legal system has the largest backlog of pending cases in the world – as many as 30 million pending cases.
  • This number is continuously increasing and this itself shows the inadequacy of the legal system.
  • And also due to this backlog, most of the prisoners in India’s prisons are detainees awaiting trial.

Factors leading to under-performance of Indian Judiciary

  • The issue of heavy arrears pending in the various courts of the country has been a matter of concern since the time of independence.
  • The primary factors contributing to docket explosion and arrears as highlighted by Justice Malimath Committee report are as follows:
  1. Population explosion
  2. Litigation explosion
  3. Hasty and imperfect drafting of legislation
  4. Plurality and accumulation of appeals (Multiple appeals for the same issue)
  5. Inadequacy of judge strength
  6. Failure to provide adequate forums of appeal against quasi-judicial orders
  7. Lack of priority for disposal of old cases (due to the improper constitution of benches)
  8. Issue of appointment in Quasi-Judicial Bodies

Way ahead

  • For pendency, time limits should be prescribed for all cases based on priorities.
  • So setting time standards is essential and it will vary for different cases, and also for different courts depending on their disposal capacity.
  • Alternative disputes resolution (ADR) mechanisms should be promoted for out-of-court settlements.

 

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Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

What is Parboiled Rice, and why Centre wants to stop purchasing it?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Parboiled Rice

Mains level: Not Much

Recently, Telangana CM and members of his Cabinet staged a protest demanding a uniform paddy procurement policy. The protest came after the Centre said it was stopping the purchase of excess parboiled rice, of which Telangana is a major producer.

What is Parboiled Rice?

  • The dictionary meaning of ‘parboil’ is ‘partly cooked by boiling’.
  • Thus, the expression parboiled rice refers to rice that has been partially boiled at the paddy stage, before milling.
  • Parboiling of rice is not a new practice, and has been followed in India since ancient times.
  • However, there is no specific definition of parboiled rice of the Food Corporation of India or the Food Ministry.

How is it prepared?

  • There are several processes for parboiling rice.
  • The Central Food Technological Research Institute (CFTRI), Mysuru, uses a method in which the paddy is soaked in hot water for three hours, in contrast to the more common method in which paddy is soaked for 8 hours.
  • The water is then drained and the paddy steamed for 20 minutes.
  • Also, the paddy is dried in the shade in the method used by the CFTRI, but is sun-dried in the common method.
  • The Paddy Processing Research Centre (PPRC), Thanjavur follows a method known as the chromate soaking process.
  • It uses chromate, a family of salt in which the anion contains both chromium and oxygen, which removes the odour from the wet rice.
  • All processes generally involve three stages—soaking, steaming and drying. After passing through these stages, the paddy goes for milling.

Are all rice varieties suitable for parboiling?

  • Generally, all varieties can be processed into parboiled rice, but it is ideal to use long slender varieties to prevent breakage during milling.
  • However, aromatic varieties should not be parboiled because the process can make it can lose its aroma.

What are the benefits?

  • Parboiling makes rice tougher. This reduces the chances of the rice kernel breaking during milling.
  • It also increases the nutrient value of the rice.
  • It has a higher resistance to insects and fungi.

Certain disadvantages

  • The rice becomes darker and may smell unpleasant due to prolonged soaking.
  • Besides, setting up a parboiling rice milling unit requires a higher investment than a raw rice milling unit.

How much is the stock of parboiled rice in the country?

  • According to the Food Ministry, the total stock of parboiled rice is 40.58 lakh metric tonnes (LMT) as on April 1, 2022.
  • Out of this, the highest stock is in Telangana at 16.52 LMT, followed by Tamil Nadu (12.09 LMT) and Kerala (3 LMT).
  • The stock was in the range 0.04–2.92 LMT in 10 other states —Andhra Pradesh, Chhattisgarh, Odisha, Jharkhand, West Bengal, Karnataka, Bihar, Punjab and Haryana.
  • From the other 10 rice-producing states, including Telangana, the Ministry has no plan to procure parboiled rice.
  • In the coming days, the total parboiled rice stock will increase to 47.76 LMT.

How high is the demand?

  • The Food Ministry pegs the parboiled rice demand at 20 LMT per annum for distribution under the National Food Security Act, 2013.
  • According to the Ministry, the demand for parboiled rice has come down in recent years.
  • In the last few years, production in parboiled rice-consuming states such as Jharkhand, Kerala and Tamil Nadu has increased, resulting in less movement to the deficit states.
  • Earlier, the Food Corporation of India (FCI) used to procure parboiled rice from states such as Telangana to supply to these states.
  • But in recent years, parboiled rice production has increased in these states.
  • The current stock is sufficient to meet the demand for the next two years.

 

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Oil and Gas Sector – HELP, Open Acreage Policy, etc.

Places in news: Gulf of Gabes

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Gulf of Gabes

Mains level: Not Much

A Fuel Ship with 750 tons of diesel sinks off the Gulf Of Gabes in Tunisia.

Gulf of Gabes

  • The Gulf of Gabes also known as Lesser Syrtis contrasting with the Greater Syrtis in Libya, is a gulf on Tunisia’s east coast in the Mediterranean Sea, off North Africa.
  • The gulf roughly spans the coast from Sfax to Djerba.
  • At the head of the gulf is the city of Gabès (Ghannouche) where the tides have a large range of up to 2.1 m at spring tides.
  • Both Gabès and Sfax are major ports on the gulf, supporting sponge and tuna fisheries, with Gabès being the economic and administrative centre.
  • It is 60 miles (100 km) long and 60 miles wide and is bounded by the Qarqannah (Kerkena) Islands on the northeast and by Jarbah (Djerba) Island on the southeast.

Regional economy of the gulf

  • Except for the Strait of Gibraltar and the Gulf of Venice, it is the only part of the Mediterranean with a substantial tidal range, causing the uncovering of extensive sandbanks at low water.
  • Sponge and tuna fisheries are located at the main ports of Qābis (Gabès) and Ṣafāqis (Sfax).
  • Oil and natural-gas deposits have been found in the gulf, east of Ṣafāqis.

 

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Russian Invasion of Ukraine: Global Implications

The war’s many victims

Note4Students

From UPSC perspective, the following things are important :

Prelims level: World food program

Mains level: Paper 2- Impact of Russia-Ukraine war on the developing and least developed countries

Context

Beyond Ukraine’s borders, far beyond the media spotlight, the war has launched a silent assault on the developing world. This crisis could throw up to 1.7 billion people — over one-fifth of humanity — into poverty, destitution and hunger on a scale not seen in decades.

Impact of the war on the developing world

  • Ukraine and the Russian Federation provide 30 per cent of the world’s wheat and barley, one-fifth of its maize, and over half of its sunflower oil.
  • Together, their grain feeds the poorest and most vulnerable people, providing more than one-third of the wheat imported by 45 African and least-developed countries.
  • At the same time, Russia is the world’s top natural gas exporter, and second-largest oil exporter.
  • But the war is preventing farmers from tending their crops while closing ports, ending grain exports, disrupting supply chains and sending prices skyrocketing.
  • The World Food Programme has warned that it faces the impossible choice of taking from the hungry to feed the starving.
  • It urgently needs $8 billion to support its operations in Yemen, Chad and Niger.
  • But while much of the world has stepped up in solidarity with the people of Ukraine, there is no sign of the same support for the 1.7 billion other potential victims of this war.

The Global Crisis Response Group on Food, Energy and Finance

  • The group aims to develop coordinated solutions to these interlinked crises, with governments, international financial institutions and other key partners.
  • 1] On food, the group is urging all countries to keep markets open, resist hoarding and unjustified and unnecessary export restrictions, and make reserves available to countries at the highest risk of hunger and famine.
  • 2] On energy, the use of strategic stockpiles and additional reserves could help to ease this energy crisis in the short term.
  • But the only medium- and long-term solution is to accelerate the deployment of renewable energy.
  • 3] And on finance, the G20 and international financial institutions must go into emergency mode.
  • They must find ways to increase liquidity and fiscal space, so that governments in developing countries can invest in the poorest and most vulnerable, and in the Sustainable Development Goals.
  •  Social protection, including cash transfers, will be essential to support desperate families through this crisis.
  • But many developing countries with large external debts do not have the liquidity to provide these safety nets.

Conclusion

The only lasting solution to the war in Ukraine and its assault on the poorest and most vulnerable people in the world is peace.

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Tuberculosis Elimination Strategy

Nutrition status and TB risk

Note4Students

From UPSC perspective, the following things are important :

Prelims level: MDR TB

Mains level: Paper 2- TB challenge

Context

Historical importance of good nutrition was ignored by the modern therapist who tried to control TB initially with streptomycin injection, isoniazid and para-aminosalisylic acid. In the ecstasy of finding antibiotics killing the germs, the social determinants of disease were ignored.

Lack of patient-centric TB treatment

  • With more drug arsenals such as rifampicin, ethambutol, pyrazinamide, the fight against TB bacteria continued, which became multidrug resistant.
  • The regimes and the mode of delivery of drugs were changed to plug the loopholes of non-compliance of patients.
  • Blister packs of a multi-drug regime were provided at the doorstep, and the directly observed treatment/therapy (DOT) mechanism set up.
  • Many of the poor discontinued blister-packaged free drugs thinking that these were “hot and strong” drugs not suited for the hunger pains they experienced every night.

Role of nutrition in dealing with TB

  • India has around 2.8 million active cases. It is a disease of the poor.
  • And the poor are three times less likely to go for treatment and four times less likely to complete their treatment for TB, according to WHO, in 2002.
  • The fact is that 90% of Indians exposed to TB remain dormant if their nutritional status and thereby the immune system, is good. 
  • When the infected person is immunocompromised, TB as a disease manifests itself in 10% of the infected.
  • The 2019 Global TB report identified malnutrition as the single-most associated risk factor for the development of TB, accounting for more cases than four other risks, i.e., smoking, the harmful use of alcohol, diabetes and HIV.
  • The work and the findings of a team at the Jan Swasthya Sahayog hospital at Ganiyari, Bilaspur in Chhattisgarh established the association of poor nutritional status with a higher risk of TB.

Way forward

  • Chhattisgarh initiated the supply of groundnut, moong dhal and soya oil, and from April 2018, under the Nikshay Poshan Yojana of the National Health Mission.
  • All States began extending cash support of ₹500 per month to TB patients to buy food. This amount needs to be raised.
  • Nutrition education and counselling support: Without simultaneous nutrition education and counselling support, this cash transfer will not have the desired outcome.

Conclusion

Food is a guaranteed right for life under the Constitution for all citizens, more so for TB patients. Thus, the goals of reducing the incidence of TB in India and of reducing TB mortality cannot be reached without addressing undernutrition.

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Russian Invasion of Ukraine: Global Implications

Why is the Black Sea crucial to Russia?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Black Sea mapping

Mains level: Read the attached story

The sinking of the huge Russian warship Moskva whether due to a Ukrainian missile strike or, as Russia claims, a fire on board — is a serious setback for Russia in the Black Sea.

About Black Sea

  • The famed water body is bound by Ukraine to the north and northwest, Russia and Georgia to the east, Turkey to the south, and Bulgaria and Romania to the west.
  • It links to the Sea of Marmara through the Bosphorus and then to the Aegean through the Dardanelles.

Significance of Black Sea for Russia

  • Domination of the Black Sea region is a geostrategic imperative for Moscow.
  • Black Sea has traditionally been Russia’s warm water gateway to Europe.
  • For Russia, the Black Sea is both a stepping stone to the Mediterranean.
  • It acts as a strategic buffer between NATO and itself.
  • It showcases the Russian power in the Mediterranean and to secure the economic gateway to key markets in southern Europe.
  • The Rhine-Main-Danube canal connects the Black Sea to the Atlantic Ocean and the North Sea and the port of Odessa serves as a vital link between Ukraine and the outside world.

Black Sea in the Ukraine war

  • Russia has been making efforts to gain complete control over the Black Sea since the Crimean crisis of 2014.
  • During the ongoing invasion, the domination of the Black Sea has been a major Russian objective, along with the land bridge to connect Russia and Crimea.
  • As such, there have been intense efforts to capture Mariupol, the Sea of Azov port in the breakaway eastern Ukrainian oblast of Donetsk.
  • Mariupol appeared close to falling to the Russians.

Sinking of the Moskva

  • The sinking of the Moskva is believed to be the worst loss in the history of naval warfare.
  • It was sunk by shore-based anti-ship cruise missiles which took advantage of bad weather and used decoy UAV attacks to defeat the ship’s air defence systems.
  • It demonstrates the success of outside-the-box measures adopted by Ukraine in the war.

 

Must answer this PYQ in the comment box:

Q.Consider the following pairs:

Sea Bordering country
1. Adriatic Sea Albania
2. Black Sea Croatia
3. Caspian Sea Kazakhstan
4. Mediterranean Sea Morocco
5. Red Sea Syria

Which of the pair given above are correctly matched? (CSP 2020)

(a) 1, 2 and 4 only

(b) 1, 3 and 4 only

(c) 2 and 5 only

(d) 1, 2, 3, 4 and 5

 

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Oil and Gas Sector – HELP, Open Acreage Policy, etc.

What are Oil Bonds?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Oil Bonds

Mains level: Burden of oil bonds on exchequer

Over the last one year, as retail prices of petrol, diesel and other petroleum products have surged, the government has attracted criticism.

Finance Minister has sought to counter such criticism by claiming that the current government cannot bring down taxes (and, as a consequence, prices) because it has to pay for the oil bonds issued by the previous regime.

What are oil bonds?

  • An oil bond is an IOU (I owe you), or a promissory note issued by the government to the OMCs, in lieu of cash that the government would have given them so that these companies don’t charge the public the full price of fuel.
  • An oil bond says the government will pay the oil marketing company the sum of, say, Rs 1,000 crore in 10 years.
  • And to compensate the OMC for not having this money straightaway, the government will pay it, say, 8% (or Rs 80 crore) each year until the bond matures.
  • Thus, by issuing such oil bonds, the government of the day is able to protect/ subsidise the consumers without either ruining the profitability of the OMC or running a huge budget deficit itself.

Why were they issued?

  • When fuel prices were too high for domestic consumers, governments in the past often asked oil marketing companies (OMCs) to avoid charging consumers the full price.
  • But if oil companies don’t get paid, they would become unprofitable.
  • To address this, the government said it would pay the difference.
  • But again, if the government paid that amount in cash, it would have been pointless, because then the government would have had to tax the same people to collect the money to pay the OMCs.
  • This is where oil bonds come in.

How much of fuel prices is tax?

  • There are two components to the domestic retail price — the price of crude oil itself, and the taxes levied on this basic price.
  • Together they make up the retail price.
  • The taxes vary from one product to another. For instance, as of now, taxes account for 50% of the total retail price for a litre of petrol, and 44% for a litre of diesel.

How much of the UPA-era oil bonds has the NDA government paid back?

  • There are two components of oil bonds that need to be paid off: the annual interest payment, and the final payment at the end of the bond’s tenure.
  • By issuing such bonds, a government can defer the full payment by 5 or 10 or 20 years, and in the interim just pay the interest costs.
  • Table 1 shows that between 2015 and 2021, the NDA government has fully paid off four sets of oil bonds — a total of Rs 13,500 crore.
  • Each year, the BJP government had also had to pay the interest rate on all bonds that have not matured. Chart 1 shows the amount paid towards interest payment each year.
  • Between 2014 and 2022, the government has had to spend a total of Rs 93,686 crore towards interest as well as the principal.

Still, isn’t it a bad idea to issue such bonds?

  • Former PM Manmohan Singh was correct in noting that issuing bonds just pushed the liability to a future generation.
  • But to a great extent, most of the government’s borrowing is in the form of bonds.
  • This is why each year the fiscal deficit (which is essentially the level of government’s borrowing from the market) is so keenly tracked.
  • Further, in a relatively country like India, all governments are forced to resort to the use of bonds of some kind.
  • Take the current NDA government itself, which has issued bonds worth Rs 2.79 lakh crore (twice the amount of oil bonds) to recapitalise public sector banks.
  • These bonds will be paid by governments till 2036.

 

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Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

Maharashtra develops Migration Tracking System (MTS)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: MTS Project

Mains level: Migration tracking in India

In a first-of-its-kind project in the country, the Maharashtra government has developed a website-based migration tracking system (MTS) application to map the movement of vulnerable seasonal migrant workers through individual unique identity numbers.

What is MTS Project?

  • The MTS project is envisaged to maintain the continuity of the Integrated Child Development Services (ICDS) like nutrition supply, immunisation and health check-up etc. to migrant beneficiaries.
  • It is targeted for children aged up to 18 years, lactating mothers and pregnant women registered with the Anganwadi centres.
  • Their migration will be tracked for ensuring the portability of the ICDS for their families in their destination districts within or outside the state until their return to their native places.

Need for such a project

  • Distress-driven seasonal migration of workers is quite prevalent in Maharashtra.
  • Due to lockdowns, a large number of women and children had got displaced and missed on their nutrition, vaccination and other services under the ICDS scheme.
  • Like other states, does not have any institutionalized mechanism to enumerate it.
  • So, through this initiative, the state has sought to capture the data of intra-district, inter-districts and interstate migration of such workers.

Working details of the project

  • Anganwadi workers have to first register the migrating beneficiaries from their areas on the MTS website app on their laptops or mobile phones by using the workers’ identity cards like Aadhaar, PAN card, or ration cards etc.
  • Other than names, the Anganwadi workers have to mention the age, weight, and height of the migrant children, who will be placed in nutritional categories like severe, moderate or acute.
  • Depending on this data, the nutrition benefits will be allocated to the children in their new locations.
  • On the MTS app, the Anganwadi workers would also collect details about various informal sectors — such as brick kilns, agriculture labour, stone crushing, construction work, sugarcane cutting or sugar factory — where the migrant workers are headed along with their children.

 

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Road and Highway Safety – National Road Safety Policy, Good Samaritans, etc.

E-DAR portal to speed up Accident Compensation Claims

Note4Students

From UPSC perspective, the following things are important :

Prelims level: E-DAR portal

Mains level: Road safety issues in India

The Ministry of Roads, Transport and Highways (MoRTH) has developed the portal named ‘e-DAR’ (e-Detailed Accident Report).

Why such move?

  • Road accidents continue to be a leading cause of death, disabilities and hospitalization in the country despite our commitment and efforts.
  • India ranks first in the number of road accident deaths across the 199 countries and accounts for almost 11% of the accident related deaths in the World.

E-DAR portal

  • It is designed in consultation with insurance companies to provide instant information on road accidents with a few clicks and help accelerate accident compensation claims, bringing relief to victims’ families.
  • Digitalised Detailed Accident Reports (DAR) will be uploaded on the portal for easy access.
  • The web portal will be linked to the Integrated Road Accident Database (iRAD).
  • From iRAD, applications to more than 90% of the datasets would be pushed directly to the e-DAR.
  • Stakeholders like the police, road authorities, hospitals, etc., are required to enter very minimal information for the e-DAR forms.
  • Thus, e-DAR would be an extension and e-version of iRAD.

Its working

  • The portal would be linked to other government portals like Vaahan and would get access to information on driving licence details and registration of vehicles.
  • For the benefit of investigating officers, the portal would provide geo tagging of the exact accident spot along with the site map.
  • This would notify the investigating officer on his distance from the spot of the incident in the event the portal is accessed from any other location.
  • Details like photos, video of the accident spot, damaged vehicles, injured victims, eye-witnesses, etc., would be uploaded immediately on the portal.
  • Apart from the state police, an engineer from the Public Works Department or the local body will receive an alert on his mobile device and the official concerned will then examine the accident site.

Check on fake claims

  • The e-DAR portal would conduct multiple checks against fake claims by conducting a sweeping search of vehicles involved in the accident, the date of accident, and the First Information Report number.

Various moves to curb road accidents

  • Several initiatives have been taken by the MoRTH which continues to implement a multi-pronged road safety strategy.
  • It is based on Education, Engineering, Enforcement and Emergency Care consisting inter-alia of setting up Driver training schools, creating awareness, strengthening automobile safety standards, improving road infrastructure, carrying out road safety audit etc.
  • High priority has been accorded to rectification of black spots.
  • A major initiative of the Ministry in the field of Road Safety has been the passing of the Motor Vehicle Amendment Act, 2019.
  • It focuses on road safety include, inter-alia, stiff hike in penalties for traffic violations and electronic monitoring of the same, enhanced penalties for juvenile driving, cashless treatment during the golden hour etc.

 

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