| Indian Society | Mains Paper 1: Communalism, Secularism, Regionalism

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Articles 25, 26

Mains level: Religious conversions isses

Amid opposition, the Karnataka Protection of Right to Freedom of Religion Bill, 2021, was introduced in the Assembly.

What is the Bill about?

The Bill envisages stringent provisions for forced or induced conversions.
The government wants to prohibit conversion by:

Misrepresentation
Force
Allurement
Fraudulent means
Marriage
Coercion and undue influence

Key features of the Bill

(1) Filing of Complaints

Complaints of conversions can be filed by family members of a person who is getting converted, or any other person who is related to the person who is getting converted, or any person associated with the person getting converted.

(2) Punishment and fines

The offense of conversion is cognisable and non-bailable and will attract a jail term of three to five years and a fine of ₹25,000 for people found violating the law.
There is a jail term of three to 10 years, and a fine of ₹50,000 for people converting minors, women and persons from the SC and ST communities.
The Bill also envisages a compensation of ₹5 lakh to victims of forced conversions.

Do you know?

Odisha was the first State to enact anti-conversion legislation, the Orissa Freedom of Religion Act, 1967. Madhya Pradesh enacted the same the following year.

What about willful conversion?

Prior information: After the law comes into force, any person intending to convert to another religion will have to inform the district magistrate at least thirty days in advance.
Due inquiry of purpose: The person executing the conversion must also give a notice one month in advance, following which an inquiry will be conducted by the district magistrate through the police to establish the real intent of conversion.
Defying the conversion: Not informing the district magistrate will lead to the conversion being declared null and void.

Impact of non-conformance

Not informing authorities will carry a prison term of six months to three years for persons who are converted and one year to five years for the persons carrying out the conversions.
After getting converted, the person has to again inform the district magistrate within 30 days after conversion and must appear before the district magistrate to confirm his/her identity.

What happens once the Conversion is held valid?

Post conversion, the district magistrate has to inform revenue authorities, the social welfare, minority, backward classes and other departments of the conversion.
These authorities will, in turn, take steps with respect to the entitlements of the person in terms of reservations and other benefits.

How many states have enacted the legislation?

Arunachal Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Odisha, Uttar Pradesh and Uttarakhand have laws restricting religious conversion.
Penalties for breaching the laws can range from monetary fines to imprisonment, with punishments ranging from one to three years of imprisonment and fines from ₹5,000 to ₹50,000.
Some of the laws provide for stiffer penalties if women, children, or members of Scheduled Castes or Scheduled Tribes (SC/ST) are being converted.
Some other States, including Manipur, are reportedly “considering similar laws.”

How has Parliament handled anti-conversion bills?

After independence, Parliament introduced a number of anti-conversion bills which were not enacted for want of majority approval.

In post-Independent India, the first Indian Conversion (Regulation and Registration) Bill, 1954, which sought to enforce “licensing of missionaries and the registration of conversion.”
This was followed by the introduction of the Backward Communities (Religious Protection) Bill, 1960, “which aimed at checking conversion of Hindus to ‘non-Indian religions’ .
Non-India religions included Islam, Christianity, Judaism and Zoroastrianism,.
The Freedom of Religion Bill in 1979, which sought “official curbs on inter-religious conversion.”

Religious conversion: A Constitutionality check

Indian Constitution aspires toward tolerance of all religions and guaranteed that each person was “equally entitled to freedom of conscience and the right to freely profess, practice and propagate religion” (Article 25).
This formulation did not come without dispute; the word “propagate” was one of the most contested in the whole of Indian Constitution.

Core issue: Prevalence of Inter-faith Marriage

India has the Special Marriage Act, 1954, which can be used by inter-faith/inter-community couples to get married.
The Act, however, requires an advance notice of 30 days to the magistrate before a couple is able to register their marriage.
When the parties are from different faiths, communities or castes, such a public notice can be, and has been, a great source of danger and harm from their family/community members.
Consequently, the only option exercised by the inter-faith couples is for one of them to convert to the religion of the other and get married.

Issues with such laws

The anti-conversion laws have been challenged on the ground that innocent persons were being booked under these Acts.

Patriarchal dominance: It is widely presumed that such conversions involve ‘coercion’ or ‘deceit’, and hence, Hindu women ought to be ‘protected’ from the danger of conversion.
Targeting minorities: These laws target Muslims and quoted instances of such inter-faith couples having been harassed by militant activists and state government authorities.
Freedom of Conscience: Women, it is clear, are being treated in a paternalistic way which assumes that they need protection at the cost of their right to make reasoned decisions about changing faith or choosing a friend or life partner.

What about Incentivised Conversions?

There are many cases of incentivized conversions for the poor sections of society in exchange for a dignified social life.

For them, the solution lies in addressing the root issues:

Ending discrimination
Providing high quality and free education to the poor and disenfranchised
Improving access and quality of free health facilities and medicines
Improving nourishment and
Providing adequate employment opportunities to all

Conclusion

Clearly, anti-conversion laws amount to discrimination and a violation of the right to equality.
However, inter-faith marriages should not be pre-conditioned with religious conversion. This certainly raises concerns for the majority of society.
Instead of pursuing this disastrous course, the government could work towards removing impediments to inter-faith marriages and eradicating the social stigma attached to such marriages.
The couples who wish to enter into an inter-faith alliance are enabled and protected.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

RBI proposes new norms for Capital Requirement for Banks

| Economics | Mains Paper 3: Indian Economy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Basel III norms

Mains level: Read the attached story

The Reserve Bank of India (RBI) has proposed to replace existing approaches for measuring minimum operational risk capital requirements of banks with a new Basel-III standardized approach.

What are Capital Requirements of a Bank?

Capital requirements are standardized regulations in place for banks and other depository institutions that determine how much liquid capital must be held of a certain level of their assets.
They are set to ensure that banks and depository institutions’ holdings are not dominated by investments that increase the risk of default.
They also ensure that banks and depository institutions have enough capital to sustain operating losses (OL) while still honoring withdrawals.

Why need such a requirement?

An angry public and uneasy investment climate usually prove to be the catalysts for capital requirements provisions.
This is essential when irresponsible financial behavior by large institutions is seen as the culprit behind a financial crisis, market crash, or recession.

What are the risks for a Bank?

There are many types of risks that banks face.

Credit risk
Market risk
Operational risk
Liquidity risk
Business risk
Reputational risk
Systemic risk
Moral hazard

What is Operational Risk?

‘Operational risk’ refers to the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.
This has been defined by the Basel Committee on Banking Supervision I as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.
This definition includes legal risk, but excludes strategic and reputational risk.

Pros of Capital Requirements

Ensure banks stay solvent, avoid default
Ensure depositors have access to funds
Set industry standards
Provide way to compare, evaluate institutions

Unwanted consequences of such move

Raise costs for banks and eventually consumers
Inhibit banks’ ability to invest
Reduce availability of credit, loans

Back2Basics: Basel Accords

They refer to the banking supervision Accords (recommendations on banking regulations)—Basel I, Basel II and Basel III—issued by the Basel Committee on Banking Supervision (BCBS).
They are called the Basel Accords as the BCBS maintains its secretariat at the Bank for International Settlements in Basel, Switzerland and the committee normally meets there.
These are a set of recommendations for regulations in the banking industry.
India has accepted Basel accords for the banking system.

Let’s revise them:

[1] Basel I

In 1988, BCBS introduced capital measurement system called Basel capital accord, also called as Basel 1.
It focused almost entirely on credit risk. It defined capital and structure of risk weights for banks.
The minimum capital requirement was fixed at 8% of risk-weighted assets (RWA).
RWA means assets with different risk profiles.
For example, an asset backed by collateral would carry lesser risks as compared to personal loans, which have no collateral. India adopted Basel 1 guidelines in 1999.

[2] Basel II

In June ’04, Basel II guidelines were published by BCBS, which were considered to be the refined and reformed versions of Basel I accord.
The guidelines were based on three parameters, which the committee calls it as pillars:
Capital Adequacy Requirements: Banks should maintain a minimum capital adequacy requirement of 8% of risk assets.
Supervisory Review: According to this, banks were needed to develop and use better risk management techniques in monitoring and managing all the three types of risks that a bank faces, viz. credit, market and operational risks.
Market Discipline: This need increased disclosure requirements. Banks need to mandatorily disclose their CAR, risk exposure, etc to the central bank. Basel II norms in India and overseas are yet to be fully implemented.

[3] Basel III

In 2010, Basel III guidelines were released. These guidelines were introduced in response to the financial crisis of 2008.
A need was felt to further strengthen the system as banks in the developed economies were under-capitalized, over-leveraged and had a greater reliance on short-term funding.
Also the quantity and quality of capital under Basel II were deemed insufficient to contain any further risk.
Basel III norms aim at making most banking activities such as their trading book activities more capital-intensive.
The guidelines aim to promote a more resilient banking system by focusing on four vital banking parameters viz. capital, leverage, funding and liquidity.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Indian Army inducts Armoured Engineer Reconnaissance Vehicle (AERV)

Prelims Only | Security Issues | Mains Paper 3: Indigenization Of Technology

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Armoured Engineer Reconnaissance Vehicles (AERV)

Mains level: Not Much

The first batch of next-generation indigenously designed Armoured Engineer Reconnaissance Vehicles (AERV) was inducted by the Indian Army.

About AERV

AERV is indigenously designed and developed by DRDO and manufactured by the Pune unit of Bharat Electronics Limited.
It has more than 90% indigenous content.
It is a versatile BMP-IIK amphibious Infantry Combat Vehicle (ICV) fitted with instruments for water reconnaissance, land reconnaissance, navigation, and data backup.

Unique capabilities of AERV

AERV is capable of measuring soil bearing capacity on riverbanks.
It works to determine if they are motorable for military vehicles on Go-No Go basis (critical parameters for bridge laying), dry and wet gaps in day and night conditions, slopes and height of river banks or canals.”
AERVs can navigate terrain using Military Grid Coordinate System, measure and plot underwater beds and water currents of rivers or canals.
They can store data from various instruments on Control Console for further analysis and decision-making.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Reintroduction of African Cheetahs in India

Species | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Asiatic Cheetah

Mains level: Wildlife re-introduction Program

Kuno National Park in Madhya Pradesh was all prepped to welcome the African cheetahs — a project that has been a decade in the making — this year. The project has now been postponed, as the new coronavirus variant of concern omicron prompted travel restrictions.

Confused over Leopard and Cheetah?

The most common difference between these two animals is the patterns on their coat. At first glance, it may look like they both have spots, but in actual fact, a leopard has rosettes which are rose-like markings, and cheetahs have a solid round or oval spot shape.

About Asiatic Cheetah

Cheetah, the world’s fastest land animal was declared extinct in India in 1952.
The Asiatic cheetah is classified as a “critically endangered” species by the IUCN Red List, and is believed to survive only in Iran.
It was expected to be re-introduced into the country after the Supreme Court lifted curbs for its re-introduction.
From 400 in the 1990s, their numbers are estimated to have reached to 50-70 today, because of poaching, hunting of their main prey (gazelles) and encroachment on their habitat.

Why reintroduce Cheetahs?

Reintroductions of large carnivores have increasingly been recognized as a strategy to conserve threatened species and restore ecosystem functions.
The cheetah is the only large carnivore that has been extirpated, mainly by over-hunting in India in historical times.
India now has the economic ability to consider restoring its lost natural heritage for ethical as well as ecological reasons.

Why was the project halted?

The court was worried whether the African cheetahs would find the sanctuary a favorable climate as far as the abundance of prey is concerned.
Those who challenged the plan argued that the habitat of cheetahs needed to support a genetically viable population.

Try this PYQ:

Q. Consider the following:

1. Black necked crane

2. Cheetah

3. Flying squirrel

4. Snow leopard

Which of the above are naturally found in India?

(a) 1, 2 and 3 only

(c) 2 and 4 only

(b) 1, 3 and 4 only

(d) 1, 2, 3 and 4

Post your answers here:

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

J&K – The issues around the state

Impact of Reorganisation Act on Ladakh’s autonomy

op-ed snap | Polity | Mains Paper 2: Federalism

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Article 370

Mains level: Paper 2- J and K issue

Context

The article deal with the impact of the passage of the Jammu and Kashmir Reorganisation Act of 2019 on Ladakh’s autonomy or participatory democracy.

What has changed?

Hill Councils: The Autonomous Hill Development Councils of Leh and Kargil read along with the framework of J&K’s special status and its bicameral legislative system gave Ladakh autonomy and participatory democracy.
The Hill Councils had the powers over land in Ladakh while the majority of the bigger concerns regarding land remained protected under Article 370 and J&K’s robust land protection laws.
Power to recruit the officers: Gazetted officers were recruited through the State Public Service Commission.
The District Service Selection Board made recruitments at the district level.
But today, there is no Public Service Commission in Ladakh and the Hill Councils’ power to make recruitments at the district level has also been affected by the Lieutenant Governor (LG)’s presence.
No law to protect the jobs: Technically, there also exists no law in Ladakh now that protects the land or even the jobs.
Loss of representation: the Reorganisation Act has taken away the six seats of the Members of Legislative Assembly and the Legislative Council and wakened the functioning of the Hill Councils.
The only elected representation from Ladakh outside of Ladakh is a lone MP.

Conclusion

Steps need to be taken to address the issues related to the lack of representation in Ladakh in the wake of the passage of the Reorganisation Act of 2019.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

India is keeping an eye on Central Asia

op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- India's relations with Central Asian countries

Context

The government is inviting the leaders of the five Central Asian countries — Tajikistan, Uzbekistan, Turkmenistan, Kazakhstan and Kyrgyzstan — as guests for Republic Day on January 26.

Significance of Central Asian region for India

Return of Taliban in Afghanistan: The Taliban takeover in Afghanistan has made Central Asia a region where great contestations for influence are unfolding.
There is a growing awareness that for leveraging influence in Kabul and harvesting that influence in the form of material gains, a firm footing in Central Asia is a prerequisite.
Economic dimension: Given the vast untapped mineral wealth of the region encompassing the five Central Asian countries and Afghanistan — estimated to be worth a few trillion dollars — there is a significant economic dimension to the unfolding saga.
Geopolitical angle: Washington hopes to create in Central Asia a vector of its Indo-Pacific strategy to contain China and Russia. At the same time, governments in Moscow and Beijing are circling the wagons.

Suggestions for India

India needs to work on an intricate network of relationships with the regional states while remaining mindful of the “big picture”.
Delhi’s non-aligned mindset needs to be turned into a strategic asset to navigate its long-term interests.
India’s membership of the BRICS and SCO will help.
Cooperation of Russia and China: The deepening of the traditional Indo-Russian mutual understanding has injected dynamism into Delhi’s regional strategy on the whole.
It is bound to have a calming effect on India’s tensions with China.
Delhi cannot have an effective Central Asia strategy without the cooperation of these two big powers.
Regional connectivity: India can use the card of regional connectivity to stimulate partnerships.
The time may have come to reopen the files on the TAPI and IPI gas pipeline projects. Both involve Pakistan.
Normalisation of India-Russia ties: Russia is well-placed to act as guarantor and help build both these pipelines, while China too will see advantages in the normalisation of India-Pakistan ties.

New geoeconomic partnership

Recently concluded third meeting of the India-Central Asia Dialogue in Delhi served a purpose to sensitise the Central Asian interlocutors that it attaches primacy to geoeconomics.
But India will have a challenge on its hands to flesh out the “4Cs” concept that External Affairs Minister S Jaishankar presented at the event — commerce, capacity enhancement, connectivity, and contact being the four pillars of a new geoeconomic partnership.
The key areas are transit and transport, logistics network, regional and international transport corridors, free trade agreements, manufacturing industry and job creation.
They ought to be front-loaded into India’s Central Asian strategy.
Certainly, the EAEU integration processes must be speeded up.

Consider the question “With changing geopolitical scenario, India’s stake in Central Asia has drastically increased. In the context of this, examine India’s outreach efforts toward the region and the challenges it faces in it.”

Conclusion

A host of new possibilities open up if India’s initiative on Central Asia runs on a parallel track with an improvement in relations with China.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

What rising inequality means

op-ed snap | Economics | Mains Paper 3: Inclusive Growth & Issues

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Rising inequality and its implications

Context

In the aftermath of Covid-19 pandemic, evaluating the state of inequality serves as an eye-opener on the income/wealth divides prevailing across regions.

Income and wealth inequality in the world

The top 10% of the global population share 52% of the total income, while the bottom half survives with a mere 8.5% of it.
This leaves the 40% in the middle with 40% of the income.
This distribution shows the tendency of a rising middle class with lower disparity in income, but it also shows that the status of the poor is worsening day by day.
Inequality of wealth: In terms of wealth, the top 10% of the global population own 76% of the total wealth, while the bottom 50% share a mere 2%.
Some additional features of this exposition of inequality also relate to imbalance of women’s share in income as well as the ecological inequities indicated by the differential carbon emission levels.

Factors responsible for rising inequality

[1] Absence of effective measures of redistribution

Inequality varies across regions. It is moderate in Europe and sharp in Africa.
The top 10% have an income share of 36% in Europe vis-à-vis the top 10% with a share of 58% of the total income in West Asia and North Africa.
Measures for redistribution: This disparity shows that worsening inequalities are avoidable with appropriate measures in place.

[2] The absence of measures discouraging undue accumulation

Kuznet’s curve not follower everywhere: While there is an argument in literature that inequalities are a manifestation of the average level of income, as explained by the Kuznets’ theory, the prevailing pattern across countries does not follow the same.
Average income level is poor predictor of inequality: The average income levels seem to be poor predictors of the levels of inequality, with high-income countries such as the U.S. having higher levels of inequality as against countries such as Sweden, which have moderate levels of inequality.
Similar contradictions are also seen when we contrast middle-income nations such as Brazil, India and China as against Malaysia and Uruguay.
Hence, emerging inequalities are not necessarily an outcome of rising levels of income in the post-liberalisation era, but a depiction of poor redistributive policies towards discouragement of accumulation by governments with due sensitivity towards inequalities.

How inequality hurts government finances

This prevailing pattern of wealth concentration and differential levels of income around the world has also resulted in rich nations having poor governments.
Such a situation has two underpinnings: one, governments have a limited capacity to act on inequality aversion measures and two, private interests overshadow the distributional fairness of wealth.

Way forward

Focus also needs to be placed on reducing disparities in capability domains like education and differential endowments (tangible and intangible) that have the potential to sustain inequalities.

Consider the question “How rising income and wealth inequality could harm us in various ways? What are the factors responsible for the rising inequality? Suggest the way forward.”

Conclusion

The rising levels of income and wealth need to be addresses by policy measures and reducing disparity in capacity domains.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Roads, Highways, Cargo, Air-Cargo and Logistics infrastructure – Bharatmala, LEEP, SetuBharatam, etc.

How the new Warehousing Policy will transform India’s logistics

| Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Logistcs and Supply chain management in India

In order to reduce transportation and logistic cost, the union government along with the National Highway Authority of India (NHAI) is working on warehouse policy.

What are Warehouses?

A warehouse is a building for storing goods.
Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.
They are usually large plain buildings in industrial parks on the outskirts of cities, towns, or villages.

Objectives of the New Warehousing Policy

Logistics boost: The new policy is aimed at improving logistics throughout the country.
Supply chain management: The modern warehouses will house cold-storage chains and will be able to store all kinds of cargo—wet and dry.
De-congesting cities: These facilities are expected to come up outside city centres so that large trucks carrying the cargo do not need to enter the city to unload their goods.
Fuel efficiency: This will also help boost bulk carrying capacity and save fuel.
Curbing air pollution: The idea is to minimize pollution and traffic congestion in major cities.

Who will frame and implement the policy?

NHAI: The policy will be framed by the National Highways Authority of India (NHAI). It will also be the implementing agency.

How?

Through Land Banks: There are land banks along the highways and expressways of the country with the NHAI.
PPP mode: Tenders will be floated for such land parcels, inviting private players to develop warehousing zones in PPP mode on a revenue-sharing basis or for a fixed fee.

What will be the impact on logistic costs?

Logistics cost-saving: Warehousing zones will help cut India’s logistics cost, which is 14%-16% of gross domestic product (GDP), compared to 8%-10% of GDP in China and 12%-13% in the US.
Establishment of MMLPs: The warehousing zones and multi-modal logistics parks (MMLPs) are being set up by the NHAI.
FMCG sector boost: This will help Fast-moving consumer goods (FMCG) firms, steel and cement makers stock inventory near major hubs.

How will MMLPs aid warehousing policies?

Integration of multi-modal transport includes the development of 35 MMLPs.
The MMLPs are aimed at fostering inter-modal connectivity through dedicated railway lines and access from highways to provide connectivity to an airport or a seaport or an inland waterway terminal.
The aim is to:

Remove deficiencies related to logistics
Draw the associated costs down, and
Strategically integrate highway projects and other connectivity initiatives

Why such move?

Ans. E-commerce boom

The e-commerce sector has been driving the demand for logistics and warehousing across global markets.
It has emerged as the most prominent driver of Indian warehousing market volumes along with the third party logistics sector.
This sector’s share in transactions has grown from 18% in FY17 to 31% in FY21.
The Indian market is on the verge of its next phase of growth with domestic groups such as Tatas and Reliance entering the business.
Thus far, Amazon.com Inc. and Walmart Inc. have driven the market.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

J&K – The issues around the state

Jammu and Kashmir Delimitation Commission

| Polity | Mains Paper 2: Representation Of People's Act

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Delimitation of constituencies

Mains level: Jammu and Kashmir after reorganization

The J&K Delimitation Commission has proposed to increase six seats for the Jammu division and one for the Kashmir division evoking sharp reactions from the regional parties.

What is Delimitation and why is it needed?

Delimitation is the act of redrawing boundaries of an Assembly or Lok Sabha seat to represent changes in population over time.
This exercise is carried out by a Delimitation Commission, whose orders have the force of law and cannot be questioned before any court.
The objective is to redraw boundaries (based on the data of the last Census) in a way so that the population of all seats, as far as practicable, be the same throughout the State.
Aside from changing the limits of a constituency, the process may result in a change in the number of seats in a state.

Delimitation in J&K

Assembly seats in J&K were delimited in 1963, 1973 and 1995.
Prior to August 5, 2019, carving out of J&K’s Assembly seats was carried out under the J&K Constitution and Jammu and Kashmir Representation of the People Act, 1957.
Until then, the delimitation of Lok Sabha seats in J&K was governed by the Constitution of India.
However, the delimitation of the state’s Assembly was governed by the J&K Constitution and J&K Representation of the People Act, 1957.
There was no census in the state in 1991 and hence no Delimitation Commission was set up by the state until 2001 census.

Why is it in the news again?

After the abrogation of J&K’s special status in 2019, the delimitation of Lok Sabha and Assembly seats in the newly-created UT would be as per the provisions of the Indian Constitution.
On March 6, 2020, the government set up the Delimitation Commission, headed by retired Supreme Court judge Ranjana Prakash Desai, which was tasked with winding up delimitation in J&K in a year.
As per the J&K Reorganization Bill, the number of Assembly seats in J&K would increase from 107 to 114, which is expected to benefit the Jammu region.

Factors considered during Delimitation

The number of districts had increased from 12 to 20 and tehsils from 52 to 207 since the last delimitation.
The population density ranged from 29 persons a square km in Kishtwar to 3,436 persons a square km in Srinagar.
The remoteness of the place, inaccessibility etc are also considered during the exercise.

What’s new?

Ans. Reserved constituencies for SC/STs

For the first time, in Jammu and Kashmir, nine seats are proposed to be allocated for Scheduled Tribes out of 90 seats on the basis of population.
Seven seats are proposed for Scheduled Castes.

Concerns raised over Delimitation

Jammu vs. Kashmir: Concerns had been expressed over how the delimitation process may end up favoring the Jammu region over Kashmir in terms of the seats.
Under-representation of Ladakh: Arguments have been made on how Ladakh has been underrepresented, with demands for statehood/sixth schedule.
Non-proportionate reservations: It is argued that seats for STs should’ve been divided in both Jammu province & Kashmir province, as the ST population is almost equal.

Do not forget to answer this PYQ in the comment box:

Q.With reference to the Delimitation Commission, consider the following statements:

The orders of the Delimitation Commission cannot be challenged in a Court of Law.

When the orders of the Delimitation Commission are laid before the Lok Sabha or State Legislative Assembly, they cannot affect any modifications in the orders.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Post your answers here:

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

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

UDAN scheme

Schemes | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

Note4Students

From UPSC perspective, the following things are important :

Prelims level: UDAN Scheme

Mains level: Aviation infrastructure in India

PM launched the UDAN scheme nearly five years back with the aim to take flying to the masses. However, many routes have launched by airlines have been discontinued.

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.

Present status of working

A total of nine rounds of bidding have taken place since January 2017.
The Ministry of Civil Aviation has set a target of operationalizing as many as 100 unserved and underserved airports and starting at least 1,000 RCS routes by 2024.
So far, the Airports Authority of India (AAI) has awarded 948 routes under UDAN, of which 403 routes have taken off that connect 65 airports.
Out of the total 28 seaplane routes connecting 14 water aerodromes, only two have commenced.

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:

Failure to set up airports or heliports due to lack of availability of land
Airlines unable to start flights on routes awarded to them or finding the routes difficult to sustain
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.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Freedom of Speech – Defamation, Sedition, etc.

Govt. disagrees with India’s rank in World Press Freedom Index

IOCR | Polity | Mains Paper 2: Indian Constitution - historical underpinnings, evolution, features, amendments, significant provisions and basic structure

Note4Students

From UPSC perspective, the following things are important :

Prelims level: World Press Freedom Index

Mains level: Freedom of press in India

The Centre has shown its disagreement with the conclusions drawn by Reporters Without Borders about press freedom in India for various reasons.

World Press Freedom Index

The PFI is an annual ranking of countries compiled and published by Reporters Without Borders since 2002.
It is based upon the organization’s own assessment of the countries’ press freedom records in the previous year.
It intends to reflect the degree of freedom that journalists, news organizations, and netizens have in each country, and the efforts made by authorities to respect this freedom.
It is careful to note that the index only deals with press freedom and does not measure the quality of journalism in the countries it assesses, nor does it look at human rights violations in general.

India’s ranking

India is ranked at 142 out of 180 countries on the World Press Freedom Index 2021.
In the South Asian neighborhood, Nepal is at 106, Sri Lanka at 127, Myanmar (before the coup) at 140, Pakistan at 145 and Bangladesh at 152.
China is ranked 177, and is only above North Korea at 179 and Turkmenistan at 178.

What the report said about India

Targeting women: It has been highlighted that the “campaigns are particularly violent when the targets are women”.
Criminal prosecutions: Often used to gag journalists critical of the authorities.
Draconian laws: It termed various Indian laws such as – laws on ‘sedition,’ ‘state secrets’ and ‘national security’, draconian.
Curb on freedom of expression: The report has also highlighted the throttling of freedom of expression on social media.
Censorship on social media: It specifically mentioned that in India the “arbitrary nature of Twitter’s algorithms also resulted in brutal censorship”

Reservations held by India

India along with many nations has reportedly disgusted the outcomes of this report. It stated that media in India enjoy absolute freedom.
The government does not subscribe to its views and country rankings and does not agree to the conclusions drawn by this organization for various reasons:

Non-transparent methodology
Very low sample size
Little or no weightage to fundamentals of democracy
Adoption of a methodology that is questionable and non-transparent
Lack of clear definition of press freedom, among others

Why is the report biased?

The report is a subjective measure computed through the prism of western liberals.
It tends to default to a homogenous view of mass media which then facilitates comparison between countries.
There are no questions about media ownership or about their economic concentration in private hands.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Freedom of Speech – Defamation, Sedition, etc.

Phrase ‘Anti-national’ not defined in statutes: MHA

| Polity | Mains Paper 2: Indian Constitution - historical underpinnings, evolution, features, amendments, significant provisions and basic structure

Note4Students

From UPSC perspective, the following things are important :

Prelims level: UAPA

Mains level: Anti-national activities

The phrase ‘anti-national’ has not been defined in statutes, the Ministry of Home Affairs (MHA) has informed the Parliament.

Defining Anti-national Activities

(1) Unlawful Activities (Prevention) Act

The UAPA is aimed at the prevention of unlawful activities associations in India.
Its main objective was to make powers available for dealing with activities directed against the integrity and sovereignty of India.

(2) Sedition Law

Section 124A IPC deals with attempts to bring into hatred or contempt or excites or attempts to excite disaffection towards, the Government established by law in India.
This law was enacted by the British colonial government in 1870 with the sole object of suppressing all voices of Indians critical of the government.

(3) NCRB Reports

In 2019, when the National Crime Records Bureau released the annual Crime in India report for year 2017, it included for the first time a new chapter on “Crime Committed by Anti National Elements.”
The chapter listed – “North East insurgents, Left Wing Extremists and Terrorists (including Jihadi terrorists)” as the three anti-national elements.

Attempts for defining

There are criminal legislations and various judicial pronouncements deal with unlawful and subversive activities which are detrimental to the unity and integrity of the country.
In this regard, it is relevant to mention that the 42^nd Constitutional Amendment Act, 1976 inserted in the Constitution Article 31D (during Emergency) which defined “anti-national activity”.
This Article 31D was, later, omitted by the 43^rd Constitutional Amendment Act, 1977.

Supreme Court guidelines

In the ultimate analysis, the judgment in Kedar Nath (1962) read down Section 124A and held that without incitement to violence or rebellion there is no sedition.
It says that ‘only when the words written or spoken etc. which have the pernicious tendency or intention of creating public disorder the law steps in.

Who maintains the data of such individuals?

The onus of maintenance of such data lies with the respective states.
‘Public Order’ and ‘Police’ are State subjects as per the Seventh Schedule of the Constitution.
Hence the data about the number of people arrested for indulging in anti-national activities are not maintained centrally.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Festivals, Dances, Theatre, Literature, Art in News

‘Chillai Kalan’ begins in Kashmir

Prelims Only | History and Art & Culture | Mains Paper 1: Arts & Culture

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Chillai Kalan

Mains level: Not Much

Kashmir is in a deep freeze as the 40-day harshest spell of winter, locally called ‘chillai kalan’ has started with the minimum temperature already sub-zero in the entire Valley.

Chillai Kalan

Chillai Kalan is the coldest 40-day period of harsh winter of winter in the Jammu and Kashmir region.
It is traditionally defined as a seasonal period of harsh winter accompanied by a change in increase in both frequency and quantity of precipitation usually snow.
It begins from December 21 and ends on January 31 next year.
It is followed by a 20-day long Chillai-Khurd (small cold) that occurs between January 31 and February 19 and a 10-day long Chillai-Bachha (baby cold).
According to Persian tradition, the night of 21st December is celebrated as Shab-e Yalda-“Night of Birth”, or Shab-e Chelleh “Night of Forty”.

Its’ celebration

In the Persian tradition, the night of December 21, the longest of the year, is celebrated as Shab-e-Yalda (night of birth) or Shab-e-Chelleh.
Dozens of netizens from Kashmir named it the ‘Pheran Day’, after the long woollen gown worn during the winters in Kashmir.
Use of a traditional firing pot called Kangri increases.
Tap water pipelines partially freeze during this period. The Dal Lake also freezes.
The famous tourist resort of Gulmarg receives heavy snow which attracts skier’s from every part of the world.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Seeds, Pesticides and Mechanization – HYV, Indian Seed Congress, etc.

[pib] Seed Village Programme (Beej Gram Yojana)

PIB | Economics | Mains Paper 3: Major Crops & Cropping Patterns

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Seed Village Concept

Mains level: Not Much

The govt is implementing Seed Village Programme (Beej Gram Yojana) since 2014-15 to upgrade the quality of farmers’ saved seeds.

What do you mean by Seed Village?

It is a village, wherein a trained group of farmers are involved in the production of seeds of various crops and cater to their needs themselves.

Seed Village Programme

This program aims at upgrading the quality of farm-saved seeds.
Under this, financial assistance is available for up to one acre per farmer for distribution of foundation/certified seeds at:

50% of seed cost for cereal crops
60% for pulses, oilseeds, fodder, and green manure crops

Objectives of the program

Increasing the seed production
Increasing the seed replacement rate
Organizing seed production in cluster (or) compact area replacing existing local varieties with new high yielding varieties
Self-sufficiency and self-reliance of the village

Implementation

The present program of seed village scheme is having two phases:

Seed production of different crops: The area which is suitable for raising a particular crop will be selected, and raised with a single variety of a kind.
Establishing seed processing unit: If the seeds are not processed and handled properly, all the past efforts in production may be lost. Thus seed processing and packaging is a very important aspect of seed production.

Benefits offered

Seed is available at the doorsteps of farms at an appropriate time.
Seeds are available at affordable costs even lesser than the market price.
It has increased the confidence among the farmers about the quality because of known sources of production.
It facilitates the fast spread of new cultivars of different kinds.

Back2Basics: Seed Replacement Rate

It is the percentage of area sown out of the total area of the crop planted in the season by using certified/quality seeds other than the farm-saved seed.
In simple terms, it is a measure of the cropped area covered with quality seed.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Foreign Policy Watch: India-Russia

Why the Russia-West equation matters to India

op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- Implications of Russia-West relations for India

Context

Thirty years ago this week, the Soviet Union collapsed — after seven decades of an expansive global role. Few countries have been as significant as Russia for modern India’s evolution.

Impact of Russian geopolitics on India’s worldviews

Russia’s relations with the West have always had consequences for India’s international relations.
India’s fear of a unipolar world dominated by the US: After the collapse of the USSR in December 1991, the loss of the long-standing Soviet ally left Delhi in fears of a unipolar world dominated by the US.
These anxieties were accentuated by post-Soviet Russia’s quick embrace of the US and the West.
However, by the turn of the millennium, relations between Russia and the West had begun to sour.
That drew India once again closer to Russia.
Russia’s growing closeness to China: Moscow also roped in Beijing to build a new coalition — the RIC — to promote a multipolar world that would limit the dangers of American hyperpower.
Improvement in India-US relations: India’s fears of the unipolar moment turned out to be overblown and Delhi’s ties with Washington began to see rapid improvement since 2000.
The upswing in India’s ties with America, however, coincided with a steady downturn in the relations between Russia and the US.

Tension between Russia and the West

The continuous escalation of tensions between Russia and the West culminated in the last few weeks in Ukraine — at the heart of Europe.
Moscow’s military mobilisation on the frontier with Ukraine — that was part of the Soviet Union until 1991 — raised alarm bells of a new war between the forces of Russia and the US-led European military alliance, North Atlantic Treaty Organisation (NATO).
Last week, Russia presented several proposals for a new European security architecture.
Moscow is calling for an end to NATO’s further eastward expansion.
Moscow also wants NATO to rescind its earlier promise to make Ukraine and Georgia — two former Soviet Republics — members of the military alliance.

Major compromises between US and Russia

The resolution of US-Russian differences, however, involves some major compromises.
Russia aware of the over reliance on China: While Russia has demonstrated that its interests can’t be simply ignored by the West, it also recognises the costs of a prolonged confrontation with the US and Europe and the dangers of relying solely on China to secure its geopolitical interests.
Russia seeking accommodation with US and Europe: While Moscow is unlikely to abandon the partnership with China, there is no doubt that an accommodation with America and Europe is a high priority for Russia.
US to focus on China challenge: The US, which is now focused on the China challenge, appears interested in easing the conflict with Russia.
Despite its extraordinary military resources, Washington can’t afford to fight in both Asia (with China) and Europe (with Russia).

Implications for India

Role of ideological sentiment: While coping with the complex dynamic of Russia’s relations with the West has been an enduring element of independent India’s foreign policy, Delhi’s thinking on Russia has too often been coloured by ideological sentiment.
In Delhi, the tendency is to over-determine Russia’s contradictions with the West.
It is not Russia’s national destiny to forever confront the West.
Russia’s current problems with the West are not about ideological principles.
It is about the terms of an honourable accommodation.
Prior to the 1917 revolution, Russia was a leading part of the European great power system.
Delhi can’t influence the new effort to build a mutually acceptable security order in Europe, but it can welcome and support it.
Role of Asian geopolitics: That the pressure for this attempted reset in Russia’s relations with the West is coming from Asian geopolitics is of some significance.
A reconciliation between Russia and the West will make it a lot easier for India to manage its own security challenges.

Conclusion

Delhi knows that stabilising the Asian balance of power will be difficult without a measure of US-Russian cooperation in Europe. If Moscow — at odds with the West in the last two decades — deepens its current close alignment with Beijing, it will be a lot harder to prevent Chinese dominance over Asia.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Women empowerment issues – Jobs,Reservation and education

Raising marriage age won’t lead to women’s empowerment

op-ed snap | Governance | Mains Paper 2: Laws, Institutions & Bodies Constituted For The Vulnerable Sections

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- Age marriage of women issue

Context

The announcement of a cabinet decision to raise the age at marriage for women from 18 to 21 years marks the fruition of a plan that was first revealed almost two years ago when a Task Force was set up for the purpose.

Why the age of marriage of women matters

Age of marriage has bearing on maternal mortality rates, fertility levels, nutrition of mother and child, sex ratios, and, on a different register, education and employment opportunities for women.
It is also argued that other factors — such as poverty and health services — were far more effective as levers for improving women’s and children’s health and nutritional status.

Issues with the decision

[1] Role of poverty neglected

If women who marry at higher ages seem to have better health and nutrition indicators, this is not caused by their marrying later than others — it is because women from better-off groups tend to marry at higher ages.
Conversely, the health indicators of poorer women do not change just because they marry at a higher age.
An illustration of this truth is found in the National Family Health Survey (IV) data, which show that levels of anaemia — which is the highest cause of maternal mortality in India and one of our worst statistics — show no change even at ages of marriage up to 25 years, once we control for other factors.
World Bank study finds no impact on women: Population control was at the heart of the 1978 amendment to the Sarda Act of 1929.
Moreover, reducing fertility rates globally by banning marriage before the age of 18 years is very much on the agenda of international agencies to this very day.
A major multi-country study undertaken by the World Bank in 2017 estimated that “savings” of no less than $5 trillion would accrue if marriage before the age of 18 was eliminated.
But such savings would be mostly due to reductions in fertility and consequent reductions in public health investments due to fewer births.
The same study saw no significant gains from raised age of marriage for women’s decision making, for lowering the levels of violence they face, or helping them find employment.
Restriction on the right of an adult woman: Globally, the age of 18 is widely regarded as the age of adulthood.
It is also viewed as an upper limit in terms of the physical and reproductive maturity of women, as well as the age of majority by child rights conventions to which India is a signatory.
Thus, the proposed move will restrict the rights of already adult women, an issue for legal experts to debate.
Law is meant to set minimum age not the right age: Equally important is the crucial slippage in the arguments made on behalf of the government from the minimum age at marriage to the right age at marriage.
The minimum age is obviously a floor, not a standard or desirable norm.
Laws are meant to set minimum levels, a threshold for triggering legal or penal action, because of the harm that may be done.

Way forward: Address issues that drive empowerment

Going by the NFHS 4 data (2015-16), more than half — 56 per cent — of women in the age group 20-24 years marry before the age of 21 years.
The problem is that the real reasons that drive empowerment are not being addressed, at least not adequately.
Educational attainments have improved enormously in recent years.
But the shocking fact (evident in all major data sets) is that decline in early marriages has been accompanied by a fall in women’s employment rates, that persisted even during the 1990s boom.
Paradoxical outcomes: The proportion of women not in paid work increases at higher ages of marriage!
Complex paradoxes like these are the hallmark of our society.
They cannot be addressed by a legal fix, particularly one that will be very hard to implement.

Consider the question “How the age of marriage of women is connected with the issue of women empowerment? What are the concerns with increasing it to 21 years? Suggest the way forward.“

Conclusion

Instead of criminalising our youth, the government must take concrete steps to really empower women. If they are truly in charge of their own lives — through affordable education, meaningful and decent employment opportunities — they will be able to make better decisions about whether, when and whom to marry.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Foreign Policy Watch: India-Sri Lanka

India- Sri Lanka Fisherman Issue

| International Relations | Mains Paper 2: India & Its Neighborhood - Relations

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Trawling

Mains level: Fishermen issue in India-SL ties

The Sri Lankan Navy has seized eight Indian fishing vessels and arrested 55 fishermen on the charge of poaching.

What is the issue?

As in the past, fishermen from Rameswaram and nearby coasts continue to sail towards Talaimannar and Katchatheevu coasts, a region famous for rich maritime resources in Sri Lanka.
Indian boats have been fishing in the troubled waters for centuries and had a free run of the Bay of Bengal, the Palk Bay and the Gulf of Mannar until 1974 and 1976.
Treaties were later signed between the two countries to demarcate the maritime boundary — the ‘International Maritime Boundary Line'(IMBL).

Issues for Sri Lanka

Proliferation of Trawlers: The overuse of mechanized trawlers in Palk Bay is damaging the marine ecosystem in SL waters.
Breach of sovereignty: There were many favorable reasons too for Indian fishermen as their access to Sri Lankan waters was easier at the time of Sri Lankan civil war.
Porous borders: Maritime boundaries were never tightly guarded as a result, Indian trawlers continue to routinely enter Lankan waters for fishing.
End of Civil War: Everything changed in 2009 with the end of civil war. Arrests and attacks increased on Indian fishermen as they continued entering Lankan waters because of depletion of marine resources on the Indian side.

Fishermen’s concern:

(1) Depletion of fisheries

There is a depletion of fisheries on the Indian side, so Indian fishermen cross into Sri Lankan waters thus denying the livelihood of their counterparts.
They deliberately cross the territorial waters even at the risk of getting arrested or shot dead by the Sri Lankan Navy.
Sri Lankan fishermen across Palk Bay are concerned over similar depletion on their side (where there is a ban for trawlers) because of poaching by Indian fishermen.

(2) Rights over Katchatheevu Island

Tamil fishermen have been entering Sri Lankan waters nearby Katchatheevu island, where they had been fishing for centuries.
In 1974, the island was ceded to Sri Lanka after an agreement was signed by Indira Gandhi between the two countries without consulting the Tamil Nadu government.
The agreement allows Indian fishermen “access to Katchatheevu for rest, for drying of nests and for the annual St Anthony’s festival” but it did not ensure the traditional fishing rights.

(3) Hefty fines

After some respite in the last couple of years, Sri Lanka introduced tougher laws banning bottom-trawling and put heavy fines for trespassing foreign vessels.
SL has increased the fine on Indian vessels found fishing in Sri Lankan waters to a minimum of LKR 6 million (about ₹25 lakh) and a maximum of LKR 175 million (about ₹17.5 Crore).
Quiet often, the fishermen are shot dead by SL marines.

Fishermen issue in TN politics

It has been often a sensitive political issue in Tamil Nadu in the past one decade.
In a defiant speech in 1991, late CM Jayalalitha had called on the people of Tamil Nadu to retrieve the Katchatheevu Island.

Way forward

Leasing: Two courses of action exist: (1) get back the island of Katchatheevu on “lease in perpetuity” or (2) permit licensed Indian fishermen to fish within a designated area of Sri Lankan waters and vice versa.
Licensing: The second course of action would persuade Colombo to permit licensed Indian fishermen to fish in Sri Lankan waters for five nautical miles from the IMBL.
Reconsidering old agreements: The 2003 proposal for licensed fishing can be revisited.
Looping in fishermen themselves: Arranging frequent meetings between fishing communities of both countries could be systematized so as to develop a friendlier atmosphere mid-seas during fishing.

Conclusion

The underlying issues of the fisheries dispute need to be addressed so that bilateral relations do not reach a crisis point.
Immediate actions should be taken to begin the phase-out of trawling and identify other fishing practices.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Aadhaar Card Issues

Election Laws (Amendment) Bill, 2021

| Polity | Mains Paper 2: Representation Of People's Act

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Election Laws (Amendment) Bill, 2021

Mains level: Issue over Mandatory Aadhaar

The Election Laws (Amendment) Bill, 2021 that seeks to link electoral rolls to the Aadhaar number has been listed for introduction in the Lok Sabha.

Key Provisions of the Election Laws (Amendment) Bill 2021

(1) Aadhaar authentication:

The Bill seeks to empower electoral officers to seek Aadhaar number of people, who want to register as voters, for establishing their identity.
It also seeks to allow the electoral registration officers to ask for Aadhaar numbers from persons already included in the electoral roll for the purposes of authentication of entries in the electoral roll.
This would also aim to identify registration of the name of the same person in the electoral roll of more than one constituency or more than once in the same constituency.

(2) Aadhaar linking with Voter ID

Linking Aadhaar with voter ID will be voluntary.
The amendment makes it clear that no application shall be denied and no entries in the electoral roll shall be deleted for the inability to produce Aadhaar number.
Such people will be allowed to furnish other documents as may be prescribed.

(3) Amendments to the RP Act for new voter registration

Section 23 of the RP Act, 1950 will be amended to allow linking of electoral roll data with the Aadhaar ecosystem to curb the menace of multiple enrolments.
Amendment to section 14 of the RP Act, 1950 will allow having four qualifying dates for eligible people to register as voters, instead of one that is January 1 at present.
As of now, people who turn 18 on or before January 1 can register as voters but those turning 18 after January 1 wait for the whole year to get registered.
The Bill proposes to make the 1st day of January, 1st day of April, 1st day of July, and 1st day of October as the qualifying dates.

(4) Imbibing gender neutrality

An amendment to section 20 of the RP Act, 1950 and section 60 of the RP Act, 1951 seeks to make the elections gender-neutral for service voters.
The amendment will also replace the word ‘wife’ with ‘spouse’ to make the statutes gender-neutral.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

Amendment to the Multi-State Cooperatives Act, 2002

| Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Multi-state cooperatives

Mains level: Multi-State Cooperatives Act, 2002

The Union Home and Cooperation Minister has announced the decision to amend the Multi-State Cooperative Societies (MSCS) Act, 2002 to plug the loopholes in the Act.

What is MSCS Act?

Cooperatives are a state subject, but there are many societies such as those for sugar and milk, banks, milk unions etc whose members and areas of operation are spread across more than one state.
The MSCS Act was passed to govern such cooperatives.
For example, most sugar mills along the districts on the Karnataka-Maharashtra border procure cane from both states.

What are Multi-State Cooperatives?

They draw their membership from two or more states, and they are thus registered under the MSCS Act.
Their board of directors has representation from all states they operate in.
Administrative and financial control of these societies is with the central registrar, with the law making it clear that no state government official can wield any control on them.

Why does the government plan to amend the Act?

(1) Issues with Central Registrar

The exclusive control of the central registrar, who is also the Central Cooperative Commissioner, was meant to allow smooth functioning of these societies.
The central Act cushions them from the interference of state authorities so that these societies are able to function in multiple states.
What was supposed to facilitate smooth functioning, however, has created obstacles.
For state-registered societies, financial and administrative control rests with state registrars who exercise it through district- and tehsil-level officers.

(2) Multiple checks and balances

Thus if a sugar mill wishes to buy new machinery or go for expansion, they would first have to take permission from the sugar commissioner for both.
Post this, the proposal would go to the state-level committee that would float tenders and carry out the process.
While the system for state-registered societies includes checks and balances at multiple layers to ensure transparency in the process, these layers do not exist in the case of multistate societies.
Instead, the board of directors has control of all finances and administration.

(3) Lack of govt control

There is an apparent lack of day-to-day government control on such societies.
Unlike state cooperatives, which have to submit multiple reports to the state registrar, multistate cooperatives need not.
The central registrar can only allow inspection of the societies under special conditions — a written request by one-third of the members of the board.
Inspections can happen only after prior intimation to societies.

(4) Lack of infrastructure

The on-ground infrastructure for central registrar is thin — there are no officers or offices at state level, with most work being carried out either online or through correspondence.
For members of the societies, the only office where they can seek justice is in Delhi, with state authorities expressing their inability to do anything.

(5) Ponzi schemes functioning as MCS

There have been instances across the country when credit societies have launched ponzi schemes taking advantage of these loopholes.
Such schemes mostly target small and medium holders with the lure of high returns.
Fly-by-night operators get people to invest and, after a few instalments, wind up their operations.

What kind of amendments can be expected?

The Centre is holding extensive consultations with experts from various fields: bankers, sugar commissioners, cooperative commissioners, housing societies federations etc.
The centre might increase their manpower, first in Delhi and then in the states, to ensure better governance of the societies.
Also, technology will be used to bring in transparency.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Capital Markets: Challenges and Developments

SEBI suspends Futures Trading in key farm crops

Prelims Only | Economics | Mains Paper 3: Indian Economy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Derievatives, Commodity trading

Mains level: NA

Market regulator Securities & Exchange Board of India (SEBI) has issued an order suspending futures trading in paddy (non-basmati), wheat, Bengal gram (chana dal), mustard seeds and its derivatives, soyabean and its derivatives, crude palm oil and green gram (moong dal) for a year.

What are Derivatives?

A derivative is a contract between two parties which derives its value/price from an underlying asset.
The value of the underlying asset is bound to change as the value of the underlying assets keep changing continuously.
Generally, stocks, bonds, currency, commodities and interest rates form the underlying asset.

Types of Derivatives

The most common types of derivatives are futures, options, forwards and swaps:

(1) Futures

Futures are standardized contracts that allow the holder to buy/sell the asset at an agreed price at the specified date.
The parties to the futures contract are under an obligation to perform the contract. These contracts are traded on the stock exchange.
The value of future contracts is marked to market every day.
It means that the contract value is adjusted according to market movements till the expiration date.

(2) Options

Options are derivative contracts that give the buyer a right to buy/sell the underlying asset at the specified price during a certain period of time.
The buyer is not under any obligation to exercise the option.
The option seller is known as the option writer. The specified price is known as the strike price.

(3) Forwards

Forwards are like futures contracts wherein the holder is under an obligation to perform the contract.
But forwards are unstandardized and not traded on stock exchanges.
These are available over-the-counter and are not marked-to-market.
These can be customized to suit the requirements of the parties to the contract.

(4) Swaps

Swaps are derivative contracts wherein two parties exchange their financial obligations.
The cash flows are based on a notional principal amount agreed between both parties without the exchange of principal.
The amount of cash flows is based on a rate of interest.
One cash flow is generally fixed and the other changes on the basis of a benchmark interest rate.
Swaps are not traded on stock exchanges and are over-the-counter contracts between businesses or financial institutions.

What are Agri-Futures?

Like equity, currency or interest rate futures, they allows to buy or sell an underlier at a preset price on a future date. All agri contracts end in compulsory delivery.

Agri products available for trade include wheat, sugar, chana, soyabean, castor, chilli , jeera futures, etc. Edible oil seeds and oils, spices and items like guar are among the more liquid contracts.
An objective of futures trading is gains reaching farmers, by establishing an efficient price-discovery platform.
This has been achieved to a large extent on NCDEX, in products such as castor, chana, soy complex, mustard, guar, cumin, etc.

National Commodity & Derivatives Exchange Limited (NCDEX) is an Indian online commodity and derivative exchange. It is under the ownership of Ministry of Finance.

What are the reasons for this ban?

(1) To cool off Food Inflation

India’s retail inflation rose to a three-month high of 4.91 % in November from 4.48 % in the previous month primarily because of a rise in food inflation to 1.87 % from 0.85 % over this period.

(2) Double Digits WPI

Wholesale Price Index-based inflation has remained in double digits for eight consecutive months beginning in April, mainly because of the surging prices of food items.
In November, the wholesale price-based inflation surged to a record high of 14.23 % amid the hardening of prices of mineral oils, basic metals, crude petroleum, and natural gas.

(3) To insulate future Price Shock

In view of Rabi Output that might be affected morbidly because of fertilizer shortage faced in many parts of the country.
By banning future’s trade, the government is trying to insulate any price shock the market might feel in the days to come in case the production is not up to par.

What will be the impact?

(1) The imports in such commodities, especially edible oils, would reduce in the short term as traders will not have a hedging platform.

Hedging, which is speculative in nature, has been made difficult.
This will lead to the release of blocked local produce supplies into the market, which should cool the prices.
Imports of commodities for speculative gains will be discouraged.

(2) It is believed that speculators have a role in jacking up prices and this needed to be discouraged to curb inflation and support growth as the economy is recovering from the COVID-19 impact.

(3) India is the world’s biggest importer of vegetable oil and this measure will make it difficult for edible oil importers and traders to transact business since they use Indian exchanges to hedge their risk.

(4) Agri-futures, driven mainly by NCDEX, have a checkered history with bans often pushing NCDEX back.

Such frequent bans are not a good development for the market as it affects confidence levels.
Often, a contract that is banned may not return to the table, which were very effective in price-discovery.
Even when the contracts are restored, traders hesitate because of the fear of bans.
As it involves losses for market participants with open positions as they must square off contracts before maturity.

What are the other steps taken?

Supply-side interventions by the Government had limited the fallout of continuing high international edible oil prices on domestic prices.
The Union Government substantially reduced taxes on imports of palm, soy and sunflower oil.
Union and State Governments had also recently reduced excise duty and VAT on petrol and diesel, aimed at bringing down inflation.
It has both direct effects as well as indirect effects operating through fuel and transportation costs.

Way Forward

The ban is expected to be lifted by March when the next mustard crop starts hitting the market and prices cool down.
- If the weather remains benign in the coming weeks, India is on course to harvest a bumper 11 million tonnes of mustard in 2021-22, up from 8.5 million tonnes in 2020-21.
The way out is not to ban any contract, but make sure to correct any serious aberration through a combination of higher margins so that if at all the price is getting distorted due to market manipulation, the correction takes place immediately.
Further, talking to potential wrongdoers is another way out, provided trading patterns noticed by the exchange reveal such tendencies.
- Position limits can be changed to ensure undue influence is not exerted by any set of traders.

UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now