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Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

[pib] UDAN Scheme awarded PM Award for Excellence in Public Administration

Note4Students

From UPSC perspective, the following things are important :

Prelims level: UDAN Scheme

Mains level: Success of the UDAN Scheme

The Ministry of Civil Aviation’s flagship Regional Connectivity Scheme UDAN (Ude Desh ka Aam Nagrik) has been awarded Prime Minister’s Award for Excellence in Public Administration this year.

What is UDAN Scheme?

  • The Ude Desh Ka Aam Nagrik (UDAN) scheme is a low-cost flying scheme launched with the aim of taking flying to the masses.
  • The first flight under UDAN was launched by the PM in April 2017.
  • It is also known as the regional connectivity scheme (RCS) as it seeks to improve air connectivity to tier-2 and tier-3 cities through revival of unused and underused airports.

Working of the Scheme

  • Airlines are awarded routes under the programme through a bidding process and are required to offer airfares at the rate of ₹2,500 per hour of flight.
  • At least 50% of the total seats on an aircraft have to be offered at cheaper rates.
  • In order to enable airlines to offer affordable fares they are given a subsidy from the govt. for a period of three years.

Success of the scheme

  • In a short span of 5 years, today 419 UDAN routes connect 67 underserved/unserved airports, including heliports and water aerodromes, and over 92 lakh people have benefited from it.
  • More than 1 lakh 79 thousand flights have flown under this scheme.
  • UDAN scheme has immensely benefitted several sectors pan-India including Hilly States, North-Eastern region, and Islands.
  • The scheme also led to development of new Greenfield Airports such as Pakyong near Gangtok in Sikkim, Tezu in Arunachal Pradesh, and Kurnool in Andhra Pradesh.
  • Krishi UDAN Scheme launched in August 2020, on international and national routes has assisted farmers in transporting agricultural products.

Issues with the working

  • Discontinuance: In reality, some of the routes launched have been discontinued as most of the routes awarded under UDAN are not active.
  • On-paper Ambitions: UDAN was expanded to provide improved connectivity to hilly regions and islands through helicopters and seaplanes. However, they mostly remain on paper.
  • The reasons include:
  1. Failure to set up airports or heliports due to lack of availability of land
  2. Airlines unable to start flights on routes awarded to them or finding the routes difficult to sustain
  3. Adverse impact of the COVID-19 pandemic

Various challenges

  • Lack of funds: Many small airlines await infusion of funds, to be able to undertake maintenance of aircraft, pay rentals to lessors, give salaries to its staff, etc.
  • Maintenance issue: Many players don’t have more than one or two planes and they are often poorly maintained. New planes are too expensive for these smaller players.
  • Availability of pilots: Often, they also have problems with the availability of pilots and are forced to hire foreign pilots which costs them a lot of money and makes the business unviable.
  • Competition: Only those routes that have been bagged by bigger domestic players such as IndiGo and SpiceJet have seen a better success rate.

Way forward

  • The govt offers subsidies for a route for a period of three years and expects the airline to develop the route during this time so that it becomes self-sufficient.
  • Airlines need an extension of the subsidy period for their operational continuity.
  • Due to the rise in COVID cases, travel restrictions and passenger safety too needs to be taken into consideration in the loss-making of such airlines.

 

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Urban Transformation – Smart Cities, AMRUT, etc.

Explained: Integrated Command and Control Centres (ICCCs)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Smart City Mission

Mains level: Significance of Integrated Command and Control Centres (ICCCs)

The Union Housing and Urban Affairs Minister has announced that 80 Integrated Command and Control Centres (ICCCs), an integral component of the Smart Cities Mission, have already been set up.

What is the Smart Cities Mission?

  • The Smart Cities Mission aims at developing 100 cities, which were shortlisted, into self-sustainable urban settlements.
  • The mission was launched on June 25, 2015 and was projected as one aimed at transforming the process of urban development in the country.
  • Among its strategic components is ‘area-based development’, which includes city improvement (retrofitting), city renewal (redevelopment) and city extension (greenfield development), plus a pan-city initiative in which ‘smart solutions’ are applied covering larger parts of the city.

Focus areas

  • Key focus areas of the scheme include the construction of walkways, pedestrian crossings, cycling tracks, efficient waste-management systems, integrated traffic management and assessment.
  • The scheme also assesses various indices to track urban development such as the Ease of Living Index, Municipal Performance Index, City GDP framework, Climate-Smart Cities assessment framework, etc.

What is an Integrated Command and Control Centre?

  • The Smart Cities Mission includes setting up ICCCs for each such city as a vital step.
  • These ICCCs are designed to enable authorities to monitor the status of various amenities in real time.
  • Initially aimed at controlling and monitoring water and power supply, sanitation, traffic movement, integrated building management, city connectivity and Internet infrastructure, these centres have since evolved to monitor various other parameters.
  • The ICCCs are now also linked to the CCTNS (Crime and Criminal Tracking Networks and Systems) network under the Ministry of Home Affairs.
  • The ICCC acts of a smart city acts as a “nerve centre” for operations management. It processes a complex and large pool of data sets at an aggregated level.
  • It is the nodal point of availability of all online data and information relating to smart services included in a smart city, such as like LED street lighting, CCTV surveillance cameras, air quality sensors, etc.

How did the ICCCs help in management of Covid-19?

  • During the pandemic, they also served as war-rooms for Covid-19 management.
  • During the peak of the first wave, when countries were struggling to figure out ways of combating the virus, the government used the ICCCs as war-rooms for managing the outbreak, with real-time surveillance and monitoring of districts across the country.
  • Converted into war-rooms, the smart cities’ ICCCs used the central data dashboard and provided information about the status of Covid-positive cases in various administrative zones of these cities, officials aware of the exercise said.
  • The war-rooms were also used for tracking people under quarantine and suspected Covid-19 cases.

What is the current status of the Smarts Cities Mission?

  • The ambitious project, announced by Prime Minister Narendra Modi in 2015, had an initial deadline of 2021 for the first lot of 20 smart cities out of the 100 selected.
  • Although the project was announced in 2015, the cities were selected over a period of two years between 2016 and 2018, each with a deadline of completion within five years from the time of their selection.
  • On the recommendation of NITI Aayog, the timeline was extended last year until 2023 due to delays caused by the pandemic.
  • According to current Ministry data, the SCM has so far covered over 140 public-private partnerships), 340 ‘smart roads’, 78 ‘vibrant public places’, 118 ‘smart water’ projects and over 63 solar projects.

What next?

  • The Ministry of Housing and Urban Affairs has begun work to finalise its recommendation for providing ICCCs as a service to states and smaller cities.
  • The Ministry aims to finalise an ICCC model and implement a pilot project across six major states — Uttar Pradesh, Maharashtra, Karnataka, Madhya Pradesh, Rajasthan and Tamil Nadu.

 

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Indian Navy Updates

INS Vagsheer: Key features, capabilities

Note4Students

From UPSC perspective, the following things are important :

Prelims level: INS Vagsheer

Mains level: Project P 75I

The sixth and last of the French Scorpene-class submarines, INS Vagsheer, was launched into water at the Mazagon Docks in Mumbai.

Launch of INS Vagsheer

  • It was launched by Veena Ajay Kumar (wife of Union Defence Secretary), in keeping with the naval tradition of launch and naming by a woman.
  • The six submarines were being built under Project-75 by the Mazagon Docks under technology transfer from the Naval Group as part of a $3.75-billion deal signed in October 2005:
  1. INS Kalvari was commissioned in December 2017;
  2. INS Khanderi in September 2019;
  3. INS Vagir in November 2020;
  4. INS Karanj in March 2021; and
  5. INS Vela in November 2021.
  • P 75 is one of two lines of submarines, the other being P75I, as part of a plan approved in 1999 for indigenous submarine construction with technology taken from overseas firms.

Why ‘Vagsheer’

  • Vagsheer is named after the sand fish, a deep sea predator of the Indian Ocean.
  • The first submarine Vagsheer, from Russia, was commissioned into the Indian Navy on December 26, 1974, and was decommissioned on April 30, 1997.
  • The new Vagsheer will be officially named at the time of its commissioning.

Specifications

  • Vagsheer can take up to eight officers and 35 men.
  • It is 67.5 metres long and 12.3 metres high, with a beam measuring 6.2 metres Vagsheer can reach top speed of 20 knots when submerged and a top speed of 11 knots when it surfaces
  • It has four MTU 12V 396 SE84 diesel engines, 360 battery cells for power, and a silent Permanently Magnetised Propulsion Motor.
  • The hull, fin and hydroplanes are designed for minimum underwater resistance and all equipment inside the pressure hull is mounted on shock-absorbing cradles for enhanced stealth.

Features

  • Vagsheer is a diesel attack submarine, designed to perform sea denial as well as access denial warfare against the adversary.
  • It can do offensive operations across the spectrum of naval warfare including anti-surface warfare, anti-submarine warfare, intelligence gathering, mine laying and area surveillance.
  • It is enabled with a C303 anti-torpedo counter measure system.
  • It can carry up to 18 torpedoes or Exocet anti-ship missiles, or 30 mines in place of torpedoes.
  • Its superior stealth features include advanced acoustic absorption techniques, low radiated noise levels, hydro-dynamically optimised shape.
  • It has the ability to launch a crippling attack using precision guided weapons, underwater or on surface.

Road ahead

  • Vagsheer will be commissioned into the Indian Navy’s Western Command after 12 to 18 months when sea trials end.
  • It will be based with Western Naval Command, mostly in Mumbai.
  • The submarine will undergo a very comprehensive and rigorous set of tests and trials, for more than a year, to ensure delivery of a fully combat worthy submarine.

Back2Basics: Various classes of Submarines in India

In maritime terms, a class of ships is a group of vessels that have the same make, purpose and displacement.

  • Chakra Class: Under a 10-year lease from Russia since 2012
  • Arihant Class: Nuclear-powered ballistic missile submarines
  • Shishumar Class: Diesel-electric attack submarines Indian variant of the Type 209 submarines developed by the German Navy
  • Kalvari Class: Diesel-electric attack submarines designed by French company DCNS
  • Sindhughosh Class: Kilo-class diesel-electric submarines built with the help of Russia
  • Scorpene-Class: French submarines that can undertake various types of missions such as anti-surface warfare, anti-submarine warfare, intelligence gathering, mine laying, area surveillance etc.

 

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ISRO Missions and Discoveries

ISRO develops Space Bricks from Martian Soil

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Space Bricks

Mains level: Not Much

Researchers from the Indian Space Research Organisation (ISRO) and the Indian Institute of Science (IISc) have developed a way to make bricks from Martian soil with the help of bacteria and urea.

Space Bricks

  • ISRO and IISc have collaborated to develop a novel scalable technique of manufacturing space bricks using Martian Simulant Soil (MSS).
  • The team first made the slurry by mixing Martian soil with guar gum, a bacterium called Sporosarcina pasteurii, urea and nickel chloride (NiCl2).
  • This slurry can be poured into moulds of any desired shape, and over a few days the bacteria convert the urea into crystals of calcium carbonate.
  • These crystals, along with biopolymers secreted by the microbes act as cement holding the soil particles together.
  • This method ensures that the bricks are less porous, which was a problem with other methods used to make Martian bricks.
  • The bacteria seep deep into the pore spaces, using their own proteins to bind the particles together, decreasing porosity and leading to stronger bricks.

Their significance

  • In the past, the team had made bricks out of lunar soil using a similar method.
  • These ‘space bricks’ can be used to construct building-like structures on Mars that could facilitate human settlement on the red planet.

 

 

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Modern Indian History-Events and Personalities

Who was Veer Kunwar Singh (1777-1858)?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Veer Kunwar Singh

Mains level: Not Much

Political factions in Bihar has planned to organise the birth anniversary of the 1857 uprising hero Veer Kunwar Singh on April 23 at Jagdishpur in Bhojpur.

Veer Kunwar Singh

  • Kunwar Singh also known as Babu Kunwar Singh was a leader during the uprising of 1857.
  • He belonged to a family of the Ujjainiya clan of the Parmar Rajputs of Jagdispur, currently a part of Bhojpur district, Bihar.
  • At the age of 80, he led a selected band of armed soldiers against the troops under the command of the British East India Company.
  • He was the chief organiser of the fight against the British in Bihar.
  • He is popularly known as Veer Kunwar Singh or Veer Babu Kunwar Singh.

Role in 1857 Uprising

  • Singh led the Indian Rebellion of 1857 in Bihar. He was nearly eighty and in failing health when he was called upon to take up arms.
  • He was assisted by both his brother, Babu Amar Singh and his commander-in-chief, Hare Krishna Singh.
  • He gave a good fight and harried British forces for nearly a year and remained invincible until the end.
  • He was an expert in the art of guerrilla warfare.

In popular culture

  • To honour his contribution to India’s freedom movement, the Centre issued a commemorative stamp on 23 April 1966.
  • The Government of Bihar established the Veer Kunwar Singh University, Arrah, in 1992.

 

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Demolition drives violate international law

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Article 21 of Indian Constitution

Mains level: Paper 2- Right to housing

Context

Communal clashes broke out during Ram Navami processions in several parts of the country including at Khargone in Madhya Pradesh. Subsequently, the Madhya Pradesh government bulldozed the houses of those who were allegedly involved in rioting.

Right to housing

  • Fundamental right under Article 21: The right to housing is not only a fundamental right recognised under Article 21 of the Indian Constitution, it is also a well-documented right under the international human rights law framework, which is binding on India.
  • Article 25 of the Universal Declaration of Human Rights (UDHR) states that “everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care.
  • Likewise, Article 11.1 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) recognises “the right of everyone to an adequate standard of living for himself and his family, including adequate food, clothing and housing, and to the continuous improvement of living condition.
  • The rights recognised under ICESCR, according to Article 4, can be restricted by States only if the limitations are determined by law in a manner compatible with the nature of these rights and solely to promote society’s general welfare.
  • Besides, international law also prohibits arbitrary interference in an individual’s right to property.
  • For instance, Article 12 of the UDHR states that “no one shall be subjected to arbitrary interference with his privacy, family, home or correspondence, nor to attacks upon his honour and reputation”.
  • Article 12 also stipulates that “everyone has the right to the protection of the law against such interference or attacks”.
  • This same right is also provided under Article 17 of the International Covenant on Civil and Political Rights (ICCPR).

Protection against Forced eviction

  • According to the UN Human Rights Office, an integral element of the right to adequate housing is ‘protection against forced evictions’.
  • The UN Human Rights Office defines ‘forced evictions’ as ‘permanent or temporary removal against the will of individuals, families and/or communities from the homes and/or land which they occupy, without the provision of, and access to, appropriate forms of legal or other protection’.

Way forward

  • The apex court in cases like Bachan Singh vs State of PunjabVishaka vs State of Rajasthan, and recently in the famous Puttaswamy vs Union of India has laid down the principle that the fundamental rights guaranteed under the Constitution must be read and interpreted in a manner which would enhance their conformity with international human rights law.
  • It is high time that the judiciary acted and imposed necessary checks on the unbridled exercise of power by the executive.

Conclusion

The bulldozing of the houses of the alleged rioters amounts to forced eviction and arbitrary interference with an individual’s home.

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North-East India – Security and Developmental Issues

Towards a peaceful, stable Northeast

Note4Students

From UPSC perspective, the following things are important :

Prelims level: AFSPA

Mains level: Paper 2- Peace process in Northeast

Context

Progress in settling border disputes, removal of AFSPA herald positive changes in the region.

Significant development for restoring normalcy in the region

  • Efforts to address the issues of the Northeast have been moving according to a strategic plan which is premised on three objectives —
  • 1] Ending all disputes.
  • 2] Ushering in economic progress and taking the region’s contribution to GDP back to its pre-Independence levels,
  • 3] making efforts to maintain and preserve the region’s languages, dialects, dance, music, food, and culture and make it attractive for the whole country.
  • In this regard, two recent developments are significant:
  • On March 29, the Assam and Meghalaya chief ministers signed an agreement to resolve the five-decade-old border dispute.
  • The Union home ministry (MHA) decided to reduce the disturbed areas under the Armed Forces (Special Powers) Act (AFSPA) in Assam, Nagaland and Manipur after decades.

Progress on the border disputes

  • As part of the strategy, existing issues of both interstate border disputes and insurgency have been closely studied and negotiated and a few agreements have been signed.
  • Assam, with the maximum border disputes in the region, got into a proactive border dialogue.
  • The dialogues on the state’s border disputes with Meghalaya, Arunachal Pradesh, Nagaland and Mizoram are continuing at a steady pace.
  • After the violent flare-ups witnessed last year at the Assam-Mizoram border, today there are regular engagements to maintain peace and work out a permanent solution.
  • The model of Assam’s engagement with Meghalaya, is a good one to emulate — the two chief ministers, after two rounds of talks in August last year, constituted three committees each under cabinet ministers in their states to go into the complex boundary issues.

Significance of notification on AFSPA

  • Peace has been witnessed in most places across Assam, and even in Nagaland and Manipur talks with various groups for a permanent solution had resulted in a cessation of violence.
  • The NLFT Tripura Agreement (August 2019), the Bru Agreement (January 2020), the Bodo Peace Accord (January 2020) and the Karbi Anglong Agreement (September 2021) have actually resulted in about 7,000 militants surrendering their arms.
  • Removal of DAN: So the demand for the removal of the disturbed areas notification (DAN) was very much justified.
  • DAN has been in force in the whole of Assam since 1990, in all of Manipur (except the Imphal Municipality area) since 2004 and in the whole of Nagaland since 1995.
  • With the removal of the DAN tag, AFSPA has been removed with effect from April 1 this year completely from 23 districts and partially from one district of Assam, from 15 police station areas of six districts of Manipur and from 15 police station areas in seven districts in Nagaland.
  •  DAN is currently applicable in only three districts and in two police station areas in one other district of Arunachal Pradesh.
  • AFSPA was completely removed from Tripura in 2015 and Meghalaya in 2018, respectively.

Conclusion

The efforts by the Union government to make the northeastern region the main pillar of the Act East policy have been useful in bringing a sense of political stability that is very crucial for optimal economic development and capacity enhancement in the region.

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Electoral Reforms In India

Election Freebies and Related Issues

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Cost of election freebies

India could end up facing a Sri Lanka-type economic crisis if it doesn’t stop the “culture of freebies” and subsidies in sectors like agriculture, NITI Aayog member Ramesh Chand has warned.

What is a Freebie?

  • The term Freebies is not new; rather it is a prevalent culture in Indian politics (in the name of socialism).
  • The political parties are always trying to outdo each other in luring the Indian voters with assorted freebies.
  • From free water to free smartphones the Indian politicians promise everything to attract prospective voters in favour.
  • This trend has gained more momentum in the recent times with the political parties being innovative in their offerings as the ‘traditional free water and electricity’ is no longer sufficient as election goodies.

Examples of freebies

  1. Promise of Rs 15 lakh in our bank accounts
  2. Free TV, Laptops
  3. Free electricity
  4. Loan waivers
  5. Offering free public transport ride to all women in Delhi

Why are such policies popular among the public?

  • Failure of economic policies: The answer lies in the utter failure of our economic policies to create decent livelihood for a vast majority of Indians.
  • Quest for decent livelihood: The already low income had to be reoriented towards spending a disproportionately higher amount on education and health, from which, the state increasingly withdrew.
  • Prevailing unemployment:  Employment surveys have shown that employment growth initially slowed down from the 1990s, and then has turned negative over the past few years.
  • Increased cost of living: Real income growth of the marginal sections has actually slowed down since 1991 reforms.
  • Increased consumerism: The poor today also spend on things which appear to be luxuries; cellphones and data-packs are two such examples which are shown as signs of India’s increased affluence.
  • Necessity: For migrant workers, the mobile phone helps them keep in touch with their families back home, or do a quick video-call to see how their infant is learning to sit up or crawl.

Can Freebies be compared with Welfare Politics?

  • These freebies are not bad. It is a part of social welfare.
  • Using freebies to lure voters is not good.
  • Voter’s greediness may lead to a problem in choosing a good leader.
  • When we don’t have a good leader then democracy will be a mockery.

Impact of such policies

  • Never ending trail: The continuity of freebies is another major disadvantage as parties keep on coming up with lucrative offers to lure more number of votes to minimize the risk of losing in the elections.
  • Burden on exchequer: People forget that such benefits are been given at the cost of exchequer and from the tax paid.
  • Ultimate loss of poors: The politicians and middlemen wipe away the benefits and the poor have to suffer as they are deprived from their share of benefits which was to be achieved out of the money.
  • Inflationary practice: Such distribution freebie commodity largely disrupts demand-supply dynamics.
  • Lethargy in population: Freebies actually have the tendency to turn the nation’s population into: Lethargy and devoid of entrepreneurship.
  • Money becomes only remedy: Everyone at the slightest sign of distress starts demanding some kind of freebies from the Govt.
  • Popular politics: This is psychology driving sections of the population expecting and the government promptly responds with immediate monetary relief or compensation.

What cannot be accounted to a freebie?

  • MGNREGA scheme (rural employment guarantee scheme)
  • Right to Education (RTE)
  • Food Security through fair price shops ( under National Food Security Act)
  • Prime Minister Kisan Samman Yojana (PM-KISAN)

Arguments in favour

  • Social investment: Aid to the poor is seen as a wasteful expenditure. But low interest rates for corporates to get cheap loans or the ‘sop’ of cutting corporate taxes are never criticized.
  • Socialistic policy: This attitude comes from decades of operating within the dominant discourse of market capitalism.
  • Election manifesto: Proponents of such policies would argue that poll promises are essential for voters to know what the party would do if it comes to power and have the chance to weigh options.
  • Welfare: Economists opine that as long as any State has the capacity and ability to finance freebies then its fine; if not then freebies are the burden on economy.
  • Other wasteful expenditure: When the Centre gives incentives like free land to big companies and announce multi-year tax holidays, questions are not asked as to where the money will come from.

A rational analysis of freebies

  • Winning election and good governance are two different things. The role of freebies to avail good governance is definitely questionable.
  • The social, political and economic consequences of freebies are very short-lived in nature.
  • There are many freebies and subsidies schemes available in many States but we still find starvation deaths, lack of electricity, poor education and health service.
  • Hence the sorrow of the masses of India cannot be solved by freebies or by incentives.

So are not freebies meant only to attract voters and swing voters by concentrating on a preferential group or community?

Way forward

  • It can be agreed that a democracy requires popular support for its rule to continue. The sops and freebies to the poor buy it the requisite votes.
  • But the democratic process of election and election promises should be clear. It should not control voters thought.
  • What some people term as ‘populism’ actually constitutes what real economics should be.
  • If you deprive people of what they really need, you will have to throw allurements at them.
  • This can only be stopped if political masters try to follow what economist EA Schumacher had conveyed through his seminal work Small is beautiful – “Treat economics as if people matter.”

Conclusion

  • There is nothing wrong in having a policy-led elaborate social security programme that seeks to help the poor get out of poverty.
  • But such a programme needs well thought out preparation and cannot be conjured up just before an election.

 

 

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Judicial Appointments Conundrum Post-NJAC Verdict

What is Collegium System?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Collegium system, NJAC

Mains level: Read the attached story

What is Collegium System?

  • The Collegium of judges is the Indian Supreme Court’s invention.
  • It does not figure in the Constitution, which says judges of the Supreme Court and High Courts are appointed by the President and speaks of a process of consultation.
  • In effect, it is a system under which judges are appointed by an institution comprising judges.
  • After some judges were superseded in the appointment of the CJI in the 1970s, and attempts made subsequently to effect a mass transfer of High Court judges across the country.
  • Hence there was a perception that the independence of the judiciary was under threat. This resulted in a series of cases over the years.

Evolution: The Judges Cases

  • First Judges Case (1981) ruled that the “consultation” with the CJI in the matter of appointments must be full and effective.
  • However, it rejected the idea that the CJI’s opinion, albeit carrying great weight, should have primacy.
  • Second Judges Case (1993) introduced the Collegium system, holding that “consultation” really meant “concurrence”.
  • It added that it was not the CJI’s individual opinion, but an institutional opinion formed in consultation with the two senior-most judges in the Supreme Court.
  • Third Judges Case (1998): On a Presidential Reference for its opinion, the Supreme Court, in the Third Judges Case (1998) expanded the Collegium to a five-member body, comprising the CJI and four of his senior-most colleagues.

The procedure followed by the Collegium

Appointment of CJI

  • The President of India appoints the CJI and the other SC judges.
  • As far as the CJI is concerned, the outgoing CJI recommends his successor.
  • In practice, it has been strictly by seniority ever since the supersession controversy of the 1970s.
  • The Union Law Minister forwards the recommendation to the PM who, in turn, advises the President.

Other SC Judges

  • For other judges of the top court, the proposal is initiated by the CJI.
  • The CJI consults the rest of the Collegium members, as well as the senior-most judge of the court hailing from the High Court to which the recommended person belongs.
  • The consultees must record their opinions in writing and it should form part of the file.
  • The Collegium sends the recommendation to the Law Minister, who forwards it to the Prime Minister to advise the President.

For High Courts

  • The CJs of High Courts are appointed as per the policy of having Chief Justices from outside the respective States. The Collegium takes the call on the elevation.
  • High Court judges are recommended by a Collegium comprising the CJI and two senior-most judges.
  • The proposal, however, is initiated by the Chief Justice of the High Court concerned in consultation with two senior-most colleagues.
  • The recommendation is sent to the Chief Minister, who advises the Governor to send the proposal to the Union Law Minister.

Does the Collegium recommend transfers too?

  • Yes, the Collegium also recommends the transfer of Chief Justices and other judges.
  • Article 222 of the Constitution provides for the transfer of a judge from one High Court to another.
  • When a CJ is transferred, a replacement must also be simultaneously found for the High Court concerned. There can be an acting CJ in a High Court for not more than a month.
  • In matters of transfers, the opinion of the CJI “is determinative”, and the consent of the judge concerned is not required.
  • However, the CJI should take into account the views of the CJ of the High Court concerned and the views of one or more SC judges who are in a position to do so.
  • All transfers must be made in the public interest, that is, “for the betterment of the administration of justice”.

Loopholes in the Collegium system

  • Lack of Transparency: Opaqueness and a lack of transparency, and the scope for nepotism are cited often.
  • Judges appointing Judge: The attempt made to replace it with a ‘National Judicial Appointments Commission’ was struck down by the court in 2015 on the ground that it posed a threat to the independence of the judiciary.
  • Criteria: Some do not believe in full disclosure of reasons for transfers, as it may make lawyers in the destination court chary of the transferred judge.

Way ahead

  • In respect of appointments, there has been an acknowledgment that the “zone of consideration” must be expanded to avoid criticism that many appointees hail from families of retired judges.
  • The status of a proposed new memorandum of procedure, to infuse greater accountability, is also unclear.
  • Even the majority of opinions admitted the need for transparency, now Collegiums’ resolutions are now posted online, but reasons are not given.

 

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

India’s Crude Oil Imports from OPEC

Note4Students

From UPSC perspective, the following things are important :

Prelims level: OPEC, OPEC Plus

Mains level: India's crude oil import

OPEC’s share of India’s oil imports for the FY22 financial year remained almost steady year-on-year, arresting sharp declines over the past six years, as refiners prefer crude from West Asia to counter rising global prices.

India’s crude oil imports from OPEC

  • OPEC oil accounted for about 88% of India’s crude imports in FY08.
  • Its share of India’s overall imports could decline because refiners in Asia’s third-largest economy are buying cheaper Russian oil.
  • However, Russian oil continued to account for less than 1% of India’s crude imports in FY22.

What is OPEC?

  • OPEC stands for Organization of the Petroleum Exporting Countries.
  • It is a permanent, intergovernmental organization, created at the Baghdad Conference in 1960, by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
  • It aims to manage the supply of oil in an effort to set the price of oil in the world market, in order to avoid fluctuations that might affect the economies of both producing and purchasing countries.
  • It is headquartered in Vienna, Austria.
  • OPEC membership is open to any country that is a substantial exporter of oil and which shares the ideals of the organization.
  • Today OPEC is a cartel that includes 14 nations, predominantly from the middle east whose sole responsibility is to control prices and moderate supply.

What is OPEC+?

  • The non-OPEC countries which export crude oil along with the 14 OPECs are termed as OPEC plus countries.
  • OPEC plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.
  • Saudi and Russia, both have been at the heart of a three-year alliance of oil producers known as OPEC Plus — which now includes 11 OPEC members and 10 non-OPEC nations — that aims to shore up oil prices with production cuts.

Why OPEC plus came into existence?

  • When Russia concluded the Vienna Agreement in 2016, the Russian leadership believed that it would help prepare the country for the Russian presidential elections in March 2018.
  • Higher oil prices ensured the Kremlin’s financial capacity to lead a successful electoral campaign.
  • This changed the regime’s priorities – from satisfying the needs of the general population to ensuring the sustainability of the Kremlin’s alliance with powerful tycoons, including that controlling oil production.
  • For Saudi Arabia, turning what had been an ad hoc coalition into a formal group provides a hedge (protection) against future oil-market turbulence.
  • For Russia, the formalization of the group helps expand Putin’s influence in the Middle East
  • However, both reportedly aimed at causing a drop in oil prices in order to hit US shale producers, who have continued to benefit from OPEC production cuts by expanding their market share.

Try this PYQ:

Q.The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of

(a) Crude oil

(b) Bullion

(c) Rare earth elements

(d) Uranium

 

Post your answers here.

 

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Modern Indian History-Events and Personalities

Places in news: East Timor

Note4Students

From UPSC perspective, the following things are important :

Prelims level: East Timor

Mains level: NA

Asia’s youngest nation, East Timor, also known as Timor Leste, holds the second and final round of its presidential election.

About East Timor

  • The territory was colonized by Portugal in the 18th century and remained under is control until 1975.
  • When the Portuguese withdrew, troops from Indonesia invaded and annexed East Timor as its 27th province.
  • A long and bloody struggle for independence ensued, during which at least 100,000 people died.
  • The East Timorese voted for independence in a 1999 U.N.-supervised referendum, but that unleashed even more violence until peace-keeping forces were allowed to enter.
  • The country was officially recognized by the United Nations in 2002.
  • East Timor has applied to be a member of the Association of Southeast Asian Nations (ASEAN). It currently holds observer status.

Its geography

  • East Timor comprises the eastern half of Timor Island, the western half of which is part of Indonesia.
  • It spans a 15,000 square km (5,792 square mile) land area – slightly smaller than Israel – and it’s 1.3 million people are predominantly Roman Catholic.

Politics and economy

  • In nearly 20 years since independence, East Timor’s presidential and parliamentary elections have been dominated by many of the same faces.
  • Its revolutionary have run for and held various positions of power and continue to feature prominently in the running of the country.
  • East Timor depends on revenues from its offshore oil and gas reserves which account for 90% of its gross domestic product.
  • Its main revenue stream, the Bayu Undan gas field, is set to dry up by 2023 and the country is now planning to collaborate with companies like Australia’s Santos to turn it into carbon capture facilities.

 

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Blockchain Technology: Prospects and Challenges

Cryptos and a CBDC are not the same thing

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Bitcoin

Mains level: Paper 3- How CBDC is different from Cryptocurrencies?

Context

Cryptocurrency will be discouraged via taxation and capital gains provisions. This was the message from the Finance Minister during the Budget discussion in Parliament.

Growing worry about the cryptocurrencies

  • The Governor of the Reserve Bank of India, in February, highlighted two things.
  • First, “private cryptocurrencies are a big threat to our financial and macroeconomic stability”.
  • Second, “these cryptocurrencies have no underlying (asset).
  • Clearly, statements from the RBI indicate a growing worry since the proliferation of cryptos threatens the RBI’s place in the economy’s financial system.
  • This threat emerges from the decentralised character of cryptos based on blockchain technology which central banks cannot regulate and which enables enterprising private entities to float cryptos which can function as assets and money.
  • The total valuation of cryptos recently was upward of $2 trillion — more than the value of gold held globally.
  • Challenges in banning it: Cryptos which operate via the net can be banned only if all nations come together.
  • Even then, tax havens may allow cryptos to function, defying the global agreement.

Crypto as currency

  • A currency is a token used in market transactions. 
  • Historically, commodities (such as copper coins) have been used as tokens since they themselves are valuable.
  • But paper currency is useless till the government declares it to be a fiat currency.
  • Paper currency derives its value from state backing.
  • Cryptos are a string of numbers in a computer programme. And, there is no state backing. 
  • Their acceptability to the well-off enables them to act as money.
  • So, cryptos acquire value and can be transacted via the net.
  • This enables them to function as money.
  • Solving the problem of double spending:  Fiat currency has the property that once spent, it cannot be spent again except through forgery, because it is no more with the spender.
  • But, software on a computer can be used repeatedly.
  • Blockchain and encryption have solved the problem by devising protocols such as ‘proof of work’ and ‘proof of stake’. 

Why CBDC is not a solution

  • A Central Bank Digital Currency (CBDC) will not solve the RBI’s problem since it can only be a fiat currency and not a crypto.
  • Blockchain enables decentralisation.But, central banks would not want that.
  • Further, central bank would want a fiat currency to be exclusively issued and controlled by them.
  • But, theoretically everyone can ‘mine’ and create crypto.
  • So, for the CBDC to be in central control, solving the ‘double spending’ problem and being a crypto (not just a digital version of currency) seems impossible.
  • Validating transaction: A centralised CBDC will require the RBI to validate each transaction — something it does not do presently.
  • Once a currency note is issued, the RBI does not keep track of its use in transactions.
  • Keeping track will be horrendously complex which could make a crypto such as the CBDC unusable unless new secure protocols are designed.

Conclusion

CBDCs at present cannot be a substitute for cryptos that will soon begin to be used as money. This will impact the functioning of central banks and commercial banks.

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India’s role in a disordered world

Note4Students

From UPSC perspective, the following things are important :

Prelims level: GATT

Mains level: Paper 2- Challenges to global order

Context

Western nations want to throw Russia out of the G-20. China has opposed them. India will be chair of the G-20 from December 1, 2022. The world is greatly disordered. What should India stand for?

Challenges to the global order

  • The war in Ukraine in February 2022 has put the final nail in the coffin of the boundary-less global economy that seemed to be emerging with the fall of the Berlin Wall and the collapse of the Soviet Union in 1991.
  • Vaccines were hoarded by rich countries in the COVID-19 pandemic: poor countries starved.
  • The World Trade Organization (WTO) was already in a bad state before the novel coronavirus pandemic, with rich and poor countries unable to agree on equitable rules, when COVID-19 froze global supply chains.
  • Institutions of global governance have failed to unite the world.

Global order and governance challenge

  • In the aftermath of the Second World war, new institutions for global governance were established — the United Nations and the General Agreement on Tariffs and Trade (GATT), and the World Bank and the International Monetary Fund (IMF) to provide finance to build the economies of all countries to eliminate poverty.
  • However, the victors retained their veto power within the United Nations Security Council to determine when force can be used to keep the world in order, and to prevent the proliferation of nuclear power.
  • The UN General Assembly meets every year — now 193 nations strong.
  • It passes many resolutions to address global problems — hunger, poverty, women’s rights, terrorism, climate change, etc.
  • However, “might is right”: members of the Security Council retain their right to deny the democratic will of the Assembly when it does not suit them.
  • Global governance is not democratic.

G-7 and G-20

  • The United States, the United Kingdom, France, Italy, Japan, West Germany and Canada formed the G7 in 1976. ‘so that the noncommunist powers could come together to discuss economic concerns, which at the time included inflation and recession following the Organization of the Petroleum Exporting Countries (OPEC) oil embargo’.
  • The European Union was invited to attend in 1977.
  • Russia joined in 1998 — and ‘its inclusion was meant as a signal of cooperation between East and West after the collapse of the Soviet Union in 1991’.
  • However, Russia was removed from G-8 in 2014 when it invaded the Crimea. China was never a member.
  • After the Asian financial crisis, the G20 was formed in 1999 with the aim of discussing policies in order to achieve international financial stability.
  • Russia and China are members.
  • Now western nations want to throw Russia out of the G-20. China has opposed them.
  • India will be chair of the G-20 from December 2022.
  • Meanwhile, India is being hectored by officials from the U.S. and the U.K. to support their sanctions on Russia.
  • India has so far refused to be cowed down.

Backlash against globalisation

  • The belief that unfettered flows of finance and trade across national borders will lift people in all poor countries out of poverty and make the world flatter in terms of inequality has failed.
  •  Strong leaders who put the interests of their own countries first are gaining power through elections — in Turkey, Hungary, Poland, Russia, and even India.
  • Free market capitalism is not ideologically compatible with a genuine democracy.
  • Capitalist institutions are governed by the fundamental principle of ‘property rights’.
  • Whereas, genuine democracies are founded on the principle of equal human rights.
  • The rules of governance of capitalist and democratic institutions have always been in tension within societies.
  • Capitalist institutions want to be unfettered by democratic regulations to make it easier to do business.
  • Democratic institutions want to rein in the competitive animal spirits of capitalism to create a more compassionate capitalism.

Conclusion

To prevent violence, it is essential that global governance becomes genuinely democratic. Countries must not attack each other. But they must be given the freedom to evolve their own democracies and economies and not be dictated to by others.

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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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