Note4Students
From UPSC perspective, the following things are important :
Prelims level: INS Vikrant
Mains level: Indigenization of defense production
The much-awaited sea trials of India’s maiden indigenous aircraft carrier (IAC-1), built by the public sector Cochin Shipyard Ltd (CSL) have begun.
Indigenous Aircraft Carrier 1
- IAC is the first aircraft carrier designed and built in India.
- It has been designed by the Indian Navy’s Directorate of Naval Design (DND), and is being built at Cochin Shipyard Limited (CSL), a public sector shipyard under the Ministry of Shipping.
- The IAC-1, the biggest warship made indigenously, has an overall length of 263 m and a breadth of 63 m.
- It is capable of carrying 30 assorted aircraft including combat jets and helicopters.
- Propelled by four gas turbines, it can attain a top speed of 30 knots (about 55 kmph).
- The vessel will have a complement of 1,500 personnel.
Significance of IAC 1
- An aircraft carrier is one of the most potent marine assets for a nation, which enhances a Navy’s capability to travel far from its home shores to carry out air domination operations.
- Many experts consider having an aircraft carrier as essential to be considered a ‘blue water’ navy — one that has the capacity to project a nation’s strength and power across the high seas.
- An aircraft carrier generally leads as the capital ship of a carrier strike/battle group.
- As the carrier is a valuable and sometimes vulnerable target, it is usually escorted in the group by destroyers, missile cruisers, frigates, submarines, and supply ships.
Why does it matter that this is a Made-in-India warship?
- Only five or six nations currently have the capability of manufacturing an aircraft carrier — India joins this elite club now.
- According to the Navy, over 76 per cent of the material and equipment on board IAC-1 is indigenous.
- India’s earlier aircraft carriers were either built by the British or the Russians.
- The INS Vikramaditya, currently the Navy’s only aircraft carrier that was commissioned in 2013, started out as the Soviet-Russian Admiral Gorshkov.
- The country’s two earlier carriers, INS Vikrant and INS Viraat, were originally the British-built HMS Hercules and HMS Hermes before being commissioned into the Navy in 1961 and 1987 respectively.
Why will this warship be named INS Vikrant?
- INS Vikrant, a Majestic-class 19,500-tonne warship, was the name of India’s much-loved first aircraft carrier, a source of immense national pride over several decades of service before it was decommissioned in 1997.
- India acquired the Vikrant from the United Kingdom in 1961, and the carrier played a stellar role in the 1971 war with Pakistan that led to the birth of Bangladesh.
Now that India has the capability, will it build more carriers?
- Since 2015, the Navy has been seeking approval to build a third aircraft carrier for the country, which, if approved, will become India’s second Indigenous Aircraft Carrier (IAC-2).
- This proposed carrier, to be named INS Vishal, is intended to be a giant 65,000-tonne vessel, much bigger than IAC-1 and the INS Vikramaditya.
- The Navy has been trying to convince the government of the “operational necessity” of having a third carrier.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Fast Track Special Courts
Mains level: Resolving judicial pendency
The Union Cabinet has approved the continuation of 1023 Fast Track Special Court (FTSCs) including 389 exclusive POCSO Courts for two more years.
Fast Track Special Courts
- Fast Track Special Courts are dedicated courts expected to ensure swift dispensation of justice.
- They have a better clearance rate as compared to the regular courts and hold speedy trials.
- Besides providing quick justice to the hapless victims, it strengthens the deterrence framework for sexual offenders.
- Central Share is to be funded from Nirbhaya Fund. The Scheme was launched on 02.10.2019.
- To bring more stringent provisions and expeditious trial and disposal of such cases, the Central Government enacted “The Criminal Law (Amendment) Act, 2018”.
- It made provision of stringent punishment including the death penalty for perpetrators of rape.
- This led to the establishment of the Fast Track Special Courts (FTSCs).
Note: Article 247 gives power to Parliament to establish certain additional courts for the better administration of laws made by it or of any existing laws with respect to a matter enumerated in the Union List.
Benefits offered by fast track courts
- Further the commitment of the Nation to champion the cause of safety and security of women and girl child.
- Reduce the number of pending cases of Rape & POCSO Act.
- Provide speedy access to justice to the victims of sexual crimes and act as a deterrent for sexual offenders.
- Fastracking of these cases will declog the judicial system of the burden of case pendency.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: K-shaped recovery
Mains level: Paper 3- Vaccination and policy measures for fast recovery of economy
Context
Increasing pace of vaccination and normalising of monetary policy hold key to economic rebound.
K-shaped recovery and its impact
- Growth indicators so far suggest resilience in the short term — a shallow dent in May’s economic activity followed by a recovery in June, back to April’s levels.
- K-shaped recovery: The external, investment and industrial sectors have been relatively resilient, with consumption and services bearing the brunt.
- Notwithstanding signs of some fatigue in ultra-high frequency indicators in July, damage from the second wave seems largely limited to April-June 2021.
- However, K-shaped recovery means light cracks on the top conceal much larger structural faultlines below.
- Rising poverty: The Pew Research Centre estimates that the pandemic has led to India’s poor rising by 75 million while the middle and upper-middle class has shrunk by 39 million.
- MSMEs and informal workforce worst hit: A recent survey by the ILO finds that the worst-hit — MSMEs and their informal workforce — have struggled to access the government’s pandemic support programmes.
- These more structural scars may become blurred in the GDP data in coming quarters but will almost certainly affect the medium-term growth story.
Way forward in the near term
1) Policy
- Achieving two objectives: When inflation is under control, then flush liquidity and ultra-accommodative monetary policy will help achieve two objectives—
- 1) Ensuring easy financial conditions.
- 2) Help control borrowing costs of the government’s expansive borrowing programme.
- Inflation risk: The above strategy is not costless, it effectively uses the central bank’s credibility in controlling inflation as “collateral”.
- So when inflation flares up and remains sticky, this arithmetic becomes increasingly complicated.
- The RBI’s consistent message recently has been to view the current inflation surge as a “temporary hump”.
- Much as the current monetary policy stance maintains that the economy is ill-equipped to handle policy normalisation, it is a matter of when rather than if.
- As growth strengthens and the RBI’s inflation-targeting credibility comes under greater scrutiny, a policy pivot would become increasingly likely.
2) Vaccination
- The “ultimate unlocking” of the economy remains contingent on a critical mass getting vaccinated, which on materialising should trigger a revival in consumer and business sentiment.
- The uptick in the pace of vaccination over the last few days and higher seroprevalence reported in some states are welcome news.
Conclusion
Even with widespread vaccinations, future pandemic waves may well be unavoidable. Fiscal, monetary and administrative policies cannot remain in a suspended emergency.
Back2Basics: K-shaped recovery
- A K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes.
- This is in contrast to an even, uniform recovery across sectors, industries, or groups of people.
- A K-shaped recovery leads to changes in the structure of the economy or the broader society as economic outcomes and relations are fundamentally changed before and after the recession.
- This type of recovery is called K-shaped because the path of different parts of the economy when charted together may diverge, resembling the two arms of the Roman letter “K.”
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Capital account
Mains level: Paper 3- Making rupee a global reserve currency
Context
India will celebrate 100 years of Independence in 2047. This article makes the case that prosperity is possible and best accomplished by the goal of making the rupee a global reserve currency by India@100.
What is the purpose of having forex reserves?
- Official foreign exchange reserves of about $12 trillion across 150 countries are currently stored in eight currencies: 55 per cent in US dollars, 30 per cent in euros, and 15 per cent in six other currencies.
- Protection in case of volatility: This concentration is inevitable given exploding trade, rising capital flows, and the less acknowledged motivation of protecting your reserves from your currency’s volatility.
- A reserve currency has to serve as a medium of exchange, a store of value, and a unit of account.
Steps India would require to take
- Full capital account convertibility: To fulfil the ambition of becoming the reserve currency, the first step is full capital account convertibility, as suggested by the Tarapore Committee in 1997.
- Advocate rupee invoicing: Dollar investors in the last decade not experiencing the usual big bite out of rupee returns is useful for advocating trading partners to start rupee invoicing.
- Offshore corporate rupee borrowing: Raising corporate rupee borrowing offshore and onshore will also help.
- Digital currency: We need to accelerate our CBDC (central bank digital bank currency) plans.
- Take payment networks to a global level: We need to take our UPI payment technology to the world, the dollar gets heft from global networks like Visa, MasterCard and Swift.
- Raise tax to GDP ratio: Fiscal policy must raise our tax to GDP ratio, raise the share of direct taxes in total taxes, and keep our public debt to GDP ratio under 100 per cent.
- Monetary policy: Monetary policy must control inflation while moderating central bank balance sheet size.
- Economic policy: Economic policy must raise the productivity to reach goals in formalisation, urbanisation, financialisation (100 per cent credit to GDP ratio), industrialisation (less than 15 per cent farm employment), internationalisation (higher share of global trade) and skilling.
- Institutional reforms: These goals must be complemented by reinforcing institutions that signal rule of law; cooperative federalism, press freedom, civil service effectiveness, and judicial independence.
How it will help India?
- Becoming a global reserve currency is helpful because it indirectly aligns fiscal, monetary, and economic policy.
- Low-interest rate: The main advantage is the “exorbitant privilege” of lower real interest rates.
- Edge over China: The 2 per cent renminbi share in global reserves — despite a 25 per cent increase last year — doesn’t reflect their status as the world’s second-largest economy and biggest trading nation.
- China’s astounding economic success seems to be making China overconfident.
- Chinese overconfidence creates an opportunity for India.
Conclusion
Prosperity for all Indians by India at100 — a precondition for a country where the mind is without fear and the head is held high — needs bold reforms in the next 25 years. These reforms are best measured by the wholesome and achievable goal of the rupee becoming a global reserve currency by 2047. The journey is the reward.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: IEA
Mains level: Paper 3- Ensuring smooth energy transition in India
Context
With an ever-growing list of countries announcing net-zero emissions targets, the global energy system is set to undergo a transformation in the coming decades. But India needs to ensure that this transition is smooth and people-centric.
Transition in India
- According to an IEA analysis, 90 per cent of new electricity generation capacity around the world now comes from renewables.
- In India, that energy transformation is well underway.
- India is among the world’s top five countries in terms of renewable power capacity.
- Ambitious target of 450 gigawatts: Its ambitious target to increase India’s renewable energy capacity to 450 gigawatts (GW) by 2030 would help move it closer to achieving the country’s broader climate goals and commitments made under the Paris Agreement.
- Clean energy leadership by India: India is also showing global clean energy leadership through initiatives such as the International Solar Alliance, which has more than 70 member countries.
- Transition in rural area: The energy transition in rural India can be driven by dedicated policies to promote renewables, incentivise investment in decentralised low-carbon power sources like rooftop solar, and train and build the capacity of clean energy entrepreneurs.
- Incorporating energy efficiency in the Affordable Housing Mission: In the short term, stimulus spending in the labour-intensive construction sector could accelerate progress on the Affordable Housing Mission.
- Incorporating energy efficiency and green construction methods into these projects could ensure millions of homes enjoy thermal comfort, and help make energy efficiency a core part of building designs.
Factors to consider in transition to clean energy
- Ensure equity: It must be ensured that the opportunities of India’s transition are shared fairly throughout society — and workers and communities are not left to face the challenges alone.
- Make it people-centric: To achieve the trifecta of jobs, growth and sustainability, India must strive to put people at the centre of its energy transformation.
- Provisions for coal-dependent regions: New jobs would need to be found over time for the coal miners affected by the changes, as well as for people who work in the fossil fuel power plants that will close down.
- Policymakers must earmark special “transition funds” to help coal-dependent regions, some of which are among India’s poorest.
- Increase investment by rationalising energy subsidies: Energy subsidies must be rationalised and directed towards those who need them most.
- Fiscal resources freed up through subsidy reform should then be invested in clean energy solutions, especially in underdeveloped regions and marginalised communities.
- Support rural livelihood: A just transition should focus on how clean energy can support rural livelihoods and increase communities’ resilience in the aftermath of the pandemic shock.
- Ensure women’s participation in the green workforce: While India’s energy transition will create many new jobs, the limited participation of women in the growing green workforce must be addressed.
- A 2019 study by CEEW and the IEA suggests that women account for nearly 32 per cent of the renewables workforce globally but only around 11 per cent of the rooftop solar workforce in India.
- Engage youth: Engaging the youth is critical to ensure that the energy transition is sustainable, inclusive and enduring.
- Young entrepreneurs in India have already shown their impact by expanding the footprint of renewables and disrupting traditional energy models.
- Some of these key themes are being explored by the 30 members of the Global Commission on People-Centred Clean Energy Transitions, which the IEA launched in January.
Conclusion
A people-centric approach, backed by good policy design, will not only help India build a clean and inclusive energy future, but could also provide a model for other countries and communities worldwide.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Net Zero
Mains level: Global rush for carbon neutrality
Independent charitable organization Oxfam has said that ‘net zero’ carbon targets that many countries have announced maybe a “dangerous distraction” from the priority of cutting carbon emissions.
What does Net-Zero mean?
- Net-zero, which is also referred to as carbon-neutrality, does not mean that a country would bring down its emissions to zero.
- That would be gross-zero, which means reaching a state where there are no emissions at all, a scenario hard to comprehend.
- Therefore, net-zero is a state in which a country’s emissions are compensated by absorption and removal of greenhouse gases from the atmosphere.
Achieving net-zero targets
- One way by which carbon can be absorbed is by creating carbon sinks.
- Until recently, the Amazon rainforests in South America, which are the largest tropical forests in the world, were carbon sinks.
- But eastern parts of these forests have started emitting CO2 instead of absorbing carbon emissions as a result of significant deforestation.
What’s the difference between gross zero and net zero?
- Given the impact that carbon emissions have on our planet, you might wonder why we aren’t aiming for zero, or gross zero, rather than net-zero.
- Gross zero would mean stopping all emissions, which isn’t realistically attainable across all sectors of our lives and industry. Even with best efforts to reduce them, there will still be some emissions.
- Net-zero looks at emissions overall, allowing for the removal of any unavoidable emissions, such as those from aviation or manufacturing.
- Removing greenhouse gases could be via nature, as trees take carbon dioxide from the atmosphere, or through new technology or changing industrial processes.
What is carbon negativity?
- It is even possible for a country to have negative emissions if the absorption and removal exceed the actual emissions.
- Bhutan has negative emissions because it absorbs more than it emits.
Which countries have recently announced net-zero targets?
- In 2019, the New Zealand government passed the Zero Carbon Act, which committed the country to zero carbon emissions by 2050 or sooner.
- In the same year, the UK’s parliament passed legislation requiring the government to reduce the UK’s net emissions of greenhouse gases by 100 per cent relative to 1990 levels by the year 2050.
- More recently, US announced that the country will cut its greenhouse gas emissions by at least 50 per cent below 2005 levels by 2030.
- The European Union too, has a similar plan, called “Fit for 55”, the European Commission has asked all of its 27 member countries to cut emissions by 55 per cent below 1990 levels by 2030.
- Last year, China also announced that it would become net-zero by the year 2060 and that it would not allow its emissions to peak beyond what they are in 2030.
What does the Oxfam report say?
- “Land-hungry ‘net zero’ schemes could force an 80 per cent rise in global food prices and more hunger while allowing rich nations and corporates to continue “dirty business-as-usual”.
- The report says that if the challenge of change is tackled only by way of planting more trees, then about 1.6 billion hectares of new forests would be required to remove the world’s excess carbon by 2050.
- Currently, countries’ plans to cut emissions will only lead to a one percent reduction by the year 2030.
- Oxfam estimates that it could rise by 80 percent by the year 2050.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Pardoning powers
Mains level: Read the attached story
The Supreme Court has held that the Governor of a State can pardon prisoners, including death row ones, even before they have served a minimum of 14 years of a prison sentence.
SC Judgement: Section 433-A CrPC
- The Governor’s power to pardon overrides a provision in the Code of Criminal Procedure — Section 433A.
- This article mandates that a prisoner’s sentence can be remitted only after 14 years of jail.
- Such power is in the exercise of the power of the sovereign, though the Governor is bound to act on the aid and advice of the State Government, the apex court observed.
- Section 433-A of the Code cannot and does not in any way affect the constitutional power conferred on the President/Governor to grant pardon under Articles 72 or 161 of the Constitution.
What does one mean by Pardon?
- A pardon is a government/executive decision to allow a person to be absolved of guilt for an alleged crime or other legal offense as if the act never occurred.
Why need Pardon?
- Pardons can be granted when individuals are deemed to have demonstrated that they have “paid their debt to society”, or are otherwise considered to be deserving of them.
- Pardons are sometimes offered to persons who were either wrongfully convicted or who claim that they were wrongfully convicted.
- Pardons are sometimes seen as a mechanism for combating corruption, allowing a particular authority to circumvent a flawed judicial process to free someone that is seen as wrongly convicted.
Pardoning powers in India
- Under the Constitution of India (Article 72), the President of India can grant a pardon or reduce the sentence of a convicted person, particularly in cases involving capital punishment.
- A similar and parallel power vests in the governors of each state under Article 161.
[I] President
- Article 72 says that the president shall have the power to grant pardons, reprieves, respites or remissions of punishment or to suspend, remit or commute the sentence of any person convicted of any offense.
- The pardoning powers of the Indian President are elucidated in Art 72 of the Indian Constitution. There are five different types of pardoning that are mandated by law.
- Pardon: means completely absolving the person of the crime and letting him go free. The pardoned criminal will be like a normal citizen.
- Commutation: means changing the type of punishment given to the guilty into a less harsh one, for example, a death penalty commuted to a life sentence.
- Reprieve: means a delay allowed in the execution of a sentence, usually a death sentence, for a guilty person to allow him some time to apply for Presidential Pardon or some other legal remedy to prove his innocence or successful rehabilitation.
- Respite: means reducing the quantum or degree of the punishment to a criminal in view of some special circumstances, like pregnancy, mental condition etc.
- Remission: means changing the quantum of the punishment without changing its nature, for example reducing twenty-year rigorous imprisonment to ten years.
Cases as specified by art. 72
- in all cases where the punishment or sentence is by a court-martial;
- in all cases where the punishment or sentence is for an offence against any law relating to a matter to which the executive power of the Union extends;
- in all cases where the sentence is a sentence of death.
[II] Governor
- Similarly, as per article 161: Governor of a State has the power to grant pardons, reprieves, respites or remissions of punishment or to suspend, remit or commute the sentence of any person convicted of any offence against any law.
- It must be relating to a matter to which the executive power of the state extends.
- President can grant pardon to a person awarded a death sentence. But a governor of a state does not enjoy this power.
Nature of the Pardoning Power
- Not absolute: The question is whether this power to grant pardon is absolute or this power of pardon shall be exercised by the President on the advice of Council of Ministers.
- Aid and advice: The pardoning power of the president is not absolute. It is governed by the advice of the Council of Ministers.
- Constitution is silent on this: This has not been discussed by the constitution but is the practical truth. Further, it does not provide for any mechanism to question the legality of decisions of President or governors exercising mercy jurisdiction.
- Judicial review applicable: But the SC in Epuru Sudhakar case has given a small window for judicial review of the pardon powers of President and governors for the purpose of ruling out any arbitrariness.
Some traditions
- It is important to note that India has a unitary legal system and there is no separate body of state law.
- All crimes are crimes against the Union of India.
- Therefore, a convention has developed that the governor’s powers are exercised for only minor offenses.
- While requests for pardons and reprieves for major offenses and offenses committed in the UTs are deferred to the President.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Poverty estimates
Mains level: Pauperization in India
In the absence of Consumption Expenditure Survey (CES) data, the Periodic Labour Force Survey shows a rise in the absolute number of the poor in India.
About Consumption Expenditure Survey (CES)
- A CES is conducted by the National Sample Survey Office (NSO) every five years.
- But the CES of 2017-18 (already conducted a year late) was not made public by the Government of India.
- Now, we hear that a new CES is likely to be conducted in 2021-22, the data from which will probably not be available before end-2022.
- India has not released its CES data since 2011-12.
Key highlights
- Unemployment had reached a 45-year high in 2017-18, as revealed by NSO’s Periodic Labour Force Survey (PLFS).
- While the PLFS’s questions on consumption expenditure are not as detailed as those of the CES, they are sufficient for us to estimate changes in consumption on a consistent basis across time.
- It enables any careful researcher to estimate the incidence of poverty (i.e. the share in the total population of those below the poverty line), as well as the total number of persons below poverty.
There is unemployment induced poverty
- There is a clear trajectory of the incidence of poverty falling from 1973 to 2012.
- In fact, since India began collecting data on poverty, the incidence of poverty has always fallen, consistently.
- It was 54.9% in 1973-4; 44.5% in 1983-84; 36% in 1993-94 and 27.5% in 2004-05.
- This was in accordance with the Lakdawala poverty line (which was lower than the Tendulkar poverty line), named after a distinguished economist, then a member of the Planning Commission.
Methodology of Poverty Line
- In 2011, it was decided in the Planning Commission, that the national poverty line will be raised in accordance with the recommendations of an expert group chaired by the late Suresh Tendulkar.
- That is the poverty line we use in estimating poverty in the table.
- As it happens, this poverty line was comparable at the time to the international poverty line (estimated by the World Bank), of $1.09 (now raised to $1.90 to account for inflation) person per day.
- The PLFS also estimates the incidence of poverty. It also collects the household monthly per capita consumption expenditure data based on the Mixed Recall Period methodology.
Stunning rise in Poverty
- It is stunning fact that for the first time in India’s history of estimating poverty, there is a rise in the incidence of poverty since 2011-12.
- The important point is that this is consistent with the NSO’s CES data for 2017-18 that was leaked data.
- The leaked data showed that rural consumption between 2012 and 2018 had fallen by 8%, while urban consumption had risen by barely 2%.
- Since the majority of India’s population (certainly over 65%) is rural, poverty in India is also predominantly rural.
- Remarkably, by 2019-20, poverty had increased significantly in both the rural and urban areas, but much more so in rural areas (from 25% to 30%).
Why is it intriguing?
- It is important here to recall two facts: between 1973 and 1993, the absolute number of poor had remained constant (at about 320 million poor), despite a significant increase in India’s total population.
- Between 1993 and 2004, the absolute number of poor fell by a marginal number (18 million) from 320 million to 302 million, during a period when the GDP growth rate had picked up after the economic reforms.
- It is for the first time in India’s history since the CES began that we have seen an increase in the absolute numbers of the poor, between 2012-13 and 2019-20.
- The second fact is that for the first time ever, between 2004-05 and 2011-12, the number of the poor fell, and that too by a staggering 133 million, or by over 19 million per year.
Fuss over GDP growth
- This was accounted for by what has come to be called India’s ‘dream run’ of growth: over 2004 and 2014, the GDP growth rate had averaged 8% per annum — a 10-year run that was not sustained thereafter.
- By contrast, not only has the incidence of poverty increased since then, but the absolute increase in poverty is totally unprecedented.
Reasons behind this Pauperization
The reasons for increased poverty since 2013 are not far to seek:
- GST: While the economy maintained some growth momentum till 2015, the monumental blunder of demonetization was followed by a poorly planned and hurriedly introduced GST.
- Fall in investments: None of the engines of growth was firing after that. Private investment fell from 31% inherited by the new government, to 28% of GDP by 2019-20.
- Fall in exports: Exports, which had never fallen in absolute dollar terms for a quarter-century since 1991, actually fell below the 2013-14 level ($315 billion) for five years.
- Unemployment: Joblessness increased to a 45-year high by 2017-18 (by the usual status), and youth (15-29 years of age) saw unemployment triple from 6% to 18% between 2012 and 2018.
- Fall in wages: Real wages did not increase for casual or regular workers over the same period, hardly surprising when job seekers were increasing but jobs were not at anywhere close to that rate.
- Pandemic: Poverty is expected to rise further during the COVID-19 pandemic after the economy has contracted.
Hence, consumer expenditure fell, and poverty increased.
Back2Basics:
Poverty Lines in India: Estimations and Committees
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Tribunals Reforms Bill
Mains level: Not Much
The Lok Sabha has hastily passed the Tribunals Reforms Bill, 2021 without any debate.
Highlights of the Tribunals Reforms Bill, 2021
The Bill seeks to dissolve certain existing appellate bodies and transfer their functions (such as adjudication of appeals) to other existing judicial bodies:
Transfer of functions of key appellate bodies as proposed under the Bill:
|
|
Acts
|
Appellate Body
|
Proposed Entity
|
| The Cinematograph Act, 1952 |
Appellate Tribunal |
High Court |
| The Trade Marks Act, 1999 |
Appellate Board |
High Court |
| The Copyright Act, 1957 |
Appellate Board |
Commercial Court or the Commercial Division of a High Court* |
| The Customs Act, 1962 |
Authority for Advance Rulings |
High Court |
| The Patents Act, 1970 |
Appellate Board |
High Court |
| The Airports Authority of India Act, 1994 |
Airport Appellate Tribunal |
- Central government, for disputes arising from the disposal of properties left on airport premises by unauthorised occupants.
- High Court, for appeals against orders of an eviction officer.
|
| The Control of National Highways (Land and Traffic) Act, 2002 |
Airport Appellate Tribunal |
Civil Court# |
| The Geographical Indications of Goods (Registration and Protection) Act, 1999 |
Appellate Board |
High Court |
Amendments to the Finance Act, 2017:
- The Finance Act, 2017 merged tribunals based on domain.
- It also empowered the central government to notify rules on: (i) composition of search-cum-selection committees, (ii) qualifications of tribunal members, and (iii) their terms and conditions of service (such as their removal and salaries).
- The Bill removes these provisions from the Finance Act, 2017.
- Provisions on the composition of selection committees and term of office have been included in the Bill. Qualification of members and other terms and conditions of service will be notified by the central government.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Sabki Yojna Sabka Vikas
Mains level: Not Much
The Government has launched ‘Sabki Yojna Sabka Vikas’ campaign for inclusive and holistic preparation of the Gram Panchayat Development Plan (GPDP).
Sabki Yojna Sabka Vikas
- Under Article 243 G of the Constitution, Panchayats have been mandated for the preparation and implementation of plans for economic development and social justice.
- Thus, Panchayats have a significant role to play in the effective and efficient implementation of flagship schemes/programs on subjects of national importance for transforming rural India.
- The objectives of the campaign broadly include strengthening of elected representatives and Self-Help Groups, evidence-based assessment of progress made.
- The campaign aimed to help Gram Panchayats (GPs) in preparation of convergent and holistic GPDP through the identification of sectoral infrastructural gaps in respective areas.
Back2Basics: Gram Panchayat Development Plan (GPDP)
- The Gram Panchayats are constitutionally mandated for the preparation of GPDP for economic development and social justice utilizing resources available with them.
- The GPDP should be comprehensive and based on a participatory process involving the community particularly Gram Sabha.
- It will be in convergence with schemes of all related Central Ministries / Line Departments related to 29 subjects listed in the Eleventh Schedule of the Constitution.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Code of conduct for Lok Sabha Members
Mains level: Paper 2- Disruption of legislatures and ways to deal with it
Context
Last week, a newspaper reported that the government is considering curtailing the monsoon session of Parliament on account of disruptions.
Reasons for disruptions
- In 2001, a day-long conference was held in the Central Hall of Parliament to discuss discipline and decorum in legislatures.
- The inputs of participants of conference helped identify four reasons behind the disorderly conduct by MPs.
- Inadequate time: The first was dissatisfaction in MPs because of inadequate time for airing their grievances.
- Unresponsive attitude: The second was an unresponsive attitude of the government and the retaliatory posture of the treasury benches.
- Adherence to norm: The third was political parties not adhering to parliamentary norms and disciplining their members.
- Lack of action: The absence of prompt action against disrupting MPs under the legislature’s rules.
Suggestions
- Enforcement of a code of conduct for MPs and MLAs: The Lok Sabha has had a simple code of conduct for its MPs since 1952.
- Newer forms of protest led to the updating of these rules in 1989.
- Accordingly, members should not shout slogans, display placards, tear away documents in protest, play cassettes or tape recorders in the House.
- A new rule empowers the Lok Sabha Speaker to suspend MPs obstructing the Houses’ business automatically.
- But these suggestions have not been enforced so far.
- Increase in working days: As recommended by the 2001 conference, there should be an increase in the working days of Parliament.
- The conference had also resolved that Parliament should meet for 110 days every year and larger state legislative assemblies for 90 days.
- Successive governments have shied away from increasing the working days of Parliament.
- Our legislature should meet throughout the year, like parliaments of most developed democracies.
- The concept of opposition days: In the United Kingdom, where Parliament meets over 100 days a year, opposition parties get 20 days on which they decide the agenda for discussion in Parliament.
- The main opposition party gets 17 days and the remaining three days are given to the second-largest opposition party.
- Canada also has a similar concept of opposition days.
- This can also be done in India.
Conclusion
More strengthening of our Parliament is the solution to prevent disruption of its proceedings. It is the only mechanism to ensure that disrupting its proceedings or allowing them to be disrupted ceases to be a viable option.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Right to privacy
Mains level: Paper 2- Surveillance and its impact on democracy
Context
The Pegasus revelations reflect an attack on Indian democracy and Indian citizens.
Role of government in protecting the fundamental and human rights of citizens
- The surveillance of the target group in India through Pegasus raises doubts about the functioning of democracy in India.
- Constitutional duty of government: The government has a constitutional duty to protect the fundamental and human rights of its citizens, irrespective of who they are.
- There is clear evidence that the rule of law has been undermined.
- More evidently, this reflects extremely poor governance.
- The Intelligence Bureau, the Research and Analysis Wing, and the National Security Council Secretariat should have forewarned the government and citizens against such surveillance seriously violating privacy and fundamental rights.
- The Supreme Court, in K.S. Puttaswamy v. Union of India (2017), declared privacy a constitutionally protected value.
Violation of human rights
- India is a signatory to the Universal Declaration of Human Rights.
- Article 12 provides that everyone has the right to the protection of the law against arbitrary interference with his privacy, family, home or correspondence.
- The International Covenant on Civil and Political Rights, also signed by India, in Article 17 states, “No one shall be subjected to arbitrary or unlawful interference with his privacy, family, home or correspondence, nor to unlawful attacks on his honour and reputation. Everyone has the right to the protection of the law against such interference or attacks.”
- In K.S. Puttaswamy, the Supreme Court noted India’s commitments under international law and held that by virtue of Article 51 of the Constitution, India has to endeavour to “foster respect for international law and treaty obligations…”
- The Protection of Human Rights Act, 1993 is a fallout of this commitment.
Recommendations on digital communication technologies
- The annual report of the United Nations High Commissioner for Human Rights (UNHCHR) in 2014 made recommendations on “digital communications technologies”.
- Judicial oversight: The UNHCHR report stated, judicial involvement that meets international standards can help to make it more likely that the overall statutory regime will meet the minimum standards that international human rights law requires.
- At the same time, the report stated that judicial involvement in oversight should not be viewed as a panacea.
- Independent body: The report also recommended an independent oversight body to keep checks.
- Effective remedy to victim: The International Covenant on Civil and Political Rights requires states parties to ensure that victims of violations of the Covenant have an effective remedy.
- Role of business: The report also dealt with the role of businesses and stated that when a state requires that an information and communications technology company provide user data, it can only supply it in respect of legitimate reasons.
- Earlier, due to concerns of member states, the General Assembly adopted Resolution 68/167 affirming that rights held by people offline must also be protected online.
- The resolution also called upon all states to respect and protect the right to privacy, including in digital communication.
Conclusion
Indians have a right to call upon NSO to terminate the agreement, if any, with the Indian government or any private player and to cooperate with citizens to unravel the truth.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Abraham Accords
Mains level: Paper 2- Opportunities for India in middle east
Context
An Egyptian scholar, Mohammed Soliman, has recently written about the significance of what he calls the emerging “Indo-Abrahamic Accord” and its trans-regional implications to the west of India.
About Abraham Accord
- Abraham Accord, signed in August last year in Washington, signifies the normalisation of Israel’s relations with the UAE and Bahrain.
- The UAE and Bahrain were followed by Sudan and Morocco in signing the Abraham Accords.
- Although Egypt (1979) and Jordan (1994) had established diplomatic relations with Israel earlier, the Abraham Accords are widely seen as making a definitive breakthrough in the relations between Israel and the Arabs.
Factors in favour of accord
- Depth of trilateral relationship: Although India had relations with UAE and Israel for many years, they certainly have acquired political depth and strategic character recently.
- Converging interests: Turkish president Recep Tayyip Erdogan’s assertive claims for the leadership of the Islamic world and hostile stand against India on several issues, indicates converging interests between India, the UAE, and Israel.
- One of the unintended consequences of Erdogan’s overweening regional ambition, his alienation of Israel as well as moderate Arabs, his conflict with Greece, and his embrace of Pakistan is the extraordinary opportunity for India to widen India’s reach to the west of the Subcontinent
- Cooperation: There are many areas like defence, aerospace and digital innovation where the three countries can pool their resources and coordinate development policies.
- India’s extended neighbourhood: The notion of a “Greater Middle East” can provide a huge fillip to India’s engagement with the extended neighbourhood to the west.
India-Turkey relations
- Hostile approach on Kashmir: Turkey has been championing Pakistan’s case on Kashmir after India changed the territorial status quo of the state in August 2019.
- Blocking NSG entry: At Pakistan’s behest, Turkey is also blocking India’s entry into the Nuclear Suppliers Group.
- The new geopolitical churn is also driven by Pakistan’s growing alignment with Turkey and its alienation from its traditionally strong supporters in the Arab Gulf — the UAE and Saudi Arabia.
Opportunities for India in extended neighbourhood to the west
- Relations with Greece: The renewed territorial disputes between Turkey and Greece, and Turkey’s quest for regional dominance has drawn Greece and the UAE closer.
- Greece has also looked towards India to enhance bilateral security cooperation.
- Greece’s European partners like France, which have a big stake in the Mediterranean as well as the Arab Gulf, have taken an active interest in countering Turkey’s regional ambitions.
- Erdogan’s support for the Muslim Brotherhood, which seeks to overthrow the current political order in the region, has deeply angered the governments of Egypt, Saudi Arabia and the UAE.
- India’s relations with Egypt: If there is one country that can give substantive depth to the Indo-Abrahamic Accord it is Egypt.
- Located at the cusp of Mediterranean Europe, Africa, and Asia, Egypt is the very heart of the Greater Middle East.
- Independent India’s engagement with the region in the 1950s was centred on a close partnership with Egypt.
- If Delhi and Cairo lost each other in recent decades, India can rebuild the strategic partnership jointly with the Egypt government which is calling for the construction of a “New Republic” in Egypt.
- The notion of a “Greater Middle East” can provide a huge fillip to India’s engagement with the extended neighbourhood to the west.
- The familiar regional institutions like the Arab League and the Organisation of Islamic Cooperation might endure but are incapable of addressing the region’s contradictions.
Consider the question “Amid Turkey’s quest for regional dominance and hostility towards India, the deepening engagement between India, the UAE and Israel can be converted into a formal coalition on the lines of Abraham Accords” Comment.
Conclusion
The opportunities that are coming India’s way to the west of the Subcontinent are as consequential as those that have recently emerged in the east.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Article 21, 22
Mains level: Need for preventive detention
Preventive detention, the dreaded power of the State to restrain a person without trial, could be used only to prevent public disorder, the Supreme Court held in a judgment.
What is Preventive Detention?
- Preventive detention means detaining a person so that to prevent that person from commenting on any possible crime.
- In other words, preventive detention is an action taken by the administration on the grounds of the suspicion that some wrong actions may be done by the person concerned which will be prejudicial to the state.
PD in India
A police officer can arrest an individual without orders from a Magistrate and without any warrant if he gets any information that such an individual can commit any offense.
- Preventive Detention Law, 1950: According to this law any person could be arrested and detained if his freedom would endanger the security of the country, foreign relations, public interests, or otherwise necessary for the country.
- Unlawful Activities Prevention Act (UAPA) 1968: Within the ambit of UAPA law the Indian State could declare any organization illegal and could imprison anyone for interrogation if the said organization or person critiqued/questioned Indian sovereignty territorially.
What is the difference between preventive detention and an arrest?
- An ‘arrest’ is done when a person is charged with a crime.
- In the case of preventive detention, a person is detained as he/she is simply restricted from doing something that might deteriorate the law-and-order situation.
- Article 22 of the Indian Constitution provides protection against arrest and detention in certain cases.
Rights of an Arrested Person in India
A/c to Article 22(1) and 22(2) of the Indian constitution:
- A person cannot be arrested and detained without being informed why he is being arrested.
- A person who is arrested cannot be denied to be defended by a legal practitioner of his choice. This means that the arrested person has right to hire a legal practitioner to defend himself/ herself.
- Every person who has been arrested would be produced before the nearest magistrate within 24 hours.
- The custody of the detained person cannot be beyond the said period by the authority of magistrate.
Exceptions for Preventive Detention
Article 22(3) says that the above safeguards are not available to the following:
- If the person is at the time being an enemy alien
- If the person is arrested under certain law made for the purpose of “Preventive Detention”
Constitutional provision
- It is extraordinary that the framers of the Indian Constitution, who suffered most because of the Preventive Detention Laws, did not hesitate to give Constitutional sanctity.
- B.R. Ambedkar was of the opinion that the freedom of the individual should not supersede the interests of the state.
- He had also stated that the independence of the country was in a state of inflancy and in order to save it, preventive detention was essential.
Issues with preventive detention
- Arbitrariness: The police determinations of whether a person poses a threat are not tested at a trial by leading evidence or examined by legally trained persons.
- Rights violation: Quiet often, there is no trial (upto 3 months), no periodic review, and no legal assistance for the detained person.
- Abuse: It does not provide any procedural protections such as to reduce detainees’ vulnerability to torture and discriminatory treatment, and to prevent officials’ misusing preventive detention for subversive activities.
- Tool for suppression: In the absence of proper safeguards, preventive detention has been misused, particularly against the Dalits and the minorities.
What has the apex court recently rule?
- Preventive detention is a necessary evil only to prevent public disorder.
- The court must ensure that the facts brought before it directly and inevitably lead to harm, danger or alarm, or feeling of insecurity among the general public or any section thereof at large.
- The State should not arbitrarily resort to “preventive detention” to deal with all and sundry “law and order” problems, which could be dealt with by the ordinary laws of the country.
- Whenever an order under a preventive detention law is challenged, one of the questions the court must ask in deciding its legality is: was the ordinary law of the land sufficient to deal with the situation?
- If the answer is in the affirmative, the detention order will be illegal.
Upholding the Article 21
- Preventive detention must fall within the four corners of Article 21 (due process of law) read with Article 22 (safeguards against arbitrary arrest and detention) and the statute in question, Justice Nariman ruled.
- The Liberty of a citizen is a most important right won by our forefathers after long, historical, and arduous struggles.
Conclusion
- The constitutional philosophy of personal liberty is an idealistic view, the curtailment of liberty for reasons of State’s security; public order, disruption of national economic discipline, etc.
- They are envisaged as a necessary evil to be administered under strict constitutional restrictions.
- India is a large country and many separatist tendencies against the national security and integrity existed and existing and a strict law is required to counter the subversive activities.
- The number of persons detained in these acts is not a very large and due attention is made before preventive detention.
- Having such kind of acts has a restraining influence on the anti-social and subversive elements.
- The state should have very effective powers to deal with the acts in which the citizens involve in hostile activities, espionage, coercion, terrorism, etc.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Gilgit Baltistan
Mains level: Issues with PoK
Pakistan has finalized draft legislation to incorporate Gilgit-Baltistan, the region known before 2009 as Northern Areas, as a province of the country.
Gilgit-Baltistan: History of the region
- Gilgit was part of the princely state of Jammu & Kashmir but was ruled directly by the British, who had taken it on lease from Hari Singh, the Hindu ruler of the Muslim-majority state.
- When Hari Singh acceded to India on October 26, 1947, the Gilgit Scouts rose in rebellion, led by their British commander Major William Alexander Brown.
- The Gilgit Scouts also moved to take over Baltistan, which was then part of Ladakh, and captured Skardu, Kargil and Dras.
- In battles thereafter, Indian forces retook Kargil and Dras in August 1948.
Accession with Pakistan
- In November, 1947, a political outfit called the Revolutionary Council of Gilgit-Baltistan had proclaimed the independent state of Gilgit-Baltistan.
- It declared GB was acceding to Pakistan only to the extent of full administrative control, choosing to govern it directly under the Frontier Crimes Regulation.
- It was a law devised by the British to keep control of the restive tribal areas of the northwest.
- Following the India-Pakistan ceasefire of January 1, 1949, Pakistan entered into an agreement with the “provisional government” of “Azad Jammu & Kashmir”.
- Much of its parts had been occupied by Pakistani troops and irregulars and were later taken over by Pak defence and foreign affairs.
- Under this agreement, the AJK government also ceded administration of Gilgit-Baltistan to Pakistan.
Not being incorporated as a province
- In 1974, Pakistan adopted its first full-fledged civilian Constitution, which lists four provinces —Punjab, Sindh, Balochistan and Khyber Pakthunkhwa.
- Pakistan-Occupied Kashmir (PoK) and Gilgit-Baltistan were not incorporated as provinces.
- One reason ascribed to this is that Pakistan did not want to undermine its international case that the resolution of the Kashmir issue had to be in accordance with UN resolutions that called for a plebiscite.
- In 1975, PoK got its own Constitution, making it an ostensibly self-governed autonomous territory.
- This Constitution had no jurisdiction over the Northern Areas, which continued to be administered directly by Islamabad (the Frontier Crimes Regulation was discontinued in 1997)
- In reality, PoK too remained under the control of Pakistani federal administration and the security establishment, through the Kashmir Council.
Reasons behind
- The main difference was that while the people of PoK had rights and freedoms guaranteed by their own Constitution, which mirrors the Pakistan Constitution.
- However the people of the minority Shia-dominated Northern Areas did not have any political representation.
- Although they were considered Pakistani, including for citizenship and passports, they were outside the ambit of constitutional protections available to those in the four provinces and PoK.
Why GB is in focus now?
- Pakistan began considering changes to its administrative arrangements with increasing Chinese involvement in strategic development ventures.
- GB was vital to those projects, given that it provides only land access between the two countries.
- Since 2009, it has had a namesake legislative assembly.
Suppression of a movement
- There is anger against Pakistan for unleashing sectarian militant groups that target Shias, but the predominant sentiment is that all this will improve once they are part of the Pakistani federation.
- There is a small movement for independence, but it has very little traction. Some factions argue for its accession with India.
- While some reports have suggested that Pakistan’s decision is under pressure from China, wary that Gilgit-Baltistan’s ambiguous status might undermine the legality of its projects there.
Significance for India
- Gilgit-Baltistan is an integral part of India by virtue of the legal, complete and irrevocable accession of Jammu & Kashmir to the Union of India in 1947.
- The area’s strategic importance for India has increased in light of the China-Pakistan Economic Corridor agreement.
- India is also concerned of a two-front war (with China as well as Pakistan) after the standoff in Eastern Ladakh last year.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Fortification of food
Mains level: Under-nutrition issues
In a pushback against the Centre’s plan to mandatorily fortify rice and edible oils with vitamins and minerals, a group of scientists and activists have warned of the adverse impacts on health and livelihoods.
Food Fortification
- Food fortification is defined as the practice of adding vitamins and minerals to commonly consumed foods during processing to increase their nutritional value.
- It is a proven, safe and cost-effective strategy for improving diets and for the prevention and control of micronutrient deficiencies.
Types of food fortification
Food fortification can also be categorized according to the stage of addition:
- Commercial and industrial fortification (wheat flour, cornmeal, cooking oils)
- Biofortification (breeding crops to increase their nutritional value, which can include both conventional selective breeding, and genetic engineering)
- Home fortification (example: vitamin D drops)
Advantages offered
- Health: Fortified staple foods will contain natural or near-natural levels of micro-nutrients, which may not necessarily be the case with supplements.
- Taste: It provides nutrition without any change in the characteristics of food or the course of our meals.
- Nutrition: If consumed on a regular and frequent basis, fortified foods will maintain body stores of nutrients more efficiently and more effectively than will intermittently supplement.
- Economy: The overall costs of fortification are extremely low; the price increase is approximately 1 to 2 percent of the total food value.
- Society: It upholds everyone’s right to have access to safe and nutritious food, consistent with the right to adequate food and the fundamental right of everyone to be free from hunger
Issues with fortified food
- Against nature: Fortification and enrichment upset nature’s packaging. Our body does not absorb individual nutrients added to processed foods as efficiently compared to nutrients naturally occurring.
- Bioavailability: Supplements added to foods are less bioavailable. Bioavailability refers to the proportion of a nutrient your body is able to absorb and use.
- Immunity issues: They lack immune-boosting substances.
- Over-nutrition: Fortified foods and supplements can pose specific risks for people who are taking prescription medications, including decreased absorption of other micro-nutrients, treatment failure, and increased mortality risk.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Haldibari- Chilahati Rail Link
Mains level: Not Much
The freight trains have started commuting via the restored Haldibari (India) – Chilahati (Bangladesh) rail link.
Haldibari- Chilahati Rail Link
- The Haldibari – Chilahati rail link between India and then East Pakistan was operational till 1965.
- The distance between Haldibari Railway Station till the international border is 4.5 km, while that of Chilahati is around 7.5 km till the ‘zero points’.
- This was part of the Broad-Gauge main route from Kolkata to Siliguri during the partition.
- Trains traveling to Assam and North Bengal continued to travel through the then East Pakistan territory even after partition.
- However, the war of 1965 effectively cut off all the railway links between India and then East Pakistan.
- The link was reopened in 2020 for the movement of passenger and goods traffic.
Other railway links between India and Bangladesh
As of now, five links connecting India with Bangladesh have been made operational which include:
- Petrapole (India) – Benapole (Bangladesh)
- Gede (India) – Darshana (Bangladesh)
- Singhabad (India) – Rohanpur (Bangladesh)
- Radhikapur (India) – Birol (Bangladesh)
- Haldibari (India) – Chilahati (Bangladesh)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Kuthiran tunnel
Mains level: Not Much
The Union Minister for Road Transport and Highways has inaugurated the Kuthiran Tunnel in Kerala
Kuthiran Tunnel
- Kuthiran Tunnel is a Twin-tube tunnel at Kuthiran in Thrissur District of Kerala.
- It is located on National Highway 544, owned and operated by the National Highways Authority of India.
- It is Kerala’s first-ever tunnel for road transport and South India’s Longest 6-lane road tunnel.
- Kuthiran gradient is situated in the Kuthiran Hills, situated in the western part of Anaimalai Hills. The hills are a notified Peechi- Vazahani wildlife sanctuary.
- It will drastically improve connectivity to Tamil Nadu and Karnataka.
- The road will improve connectivity to important ports and towns in North-South Corridor without endangering wildlife.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Fast reactors vs thermal reactor
Mains level: Paper 3- future of nuclear
Context
Bill Gates recently announced the decision to launch his own nuclear reactor with an eye on the possibility of exporting fast breeder reactors to power-hungry nations.
About the Gates plan
- TerraPower, the nuclear company founded by Mr. Gates, has just announced an agreement with private funders, including Warren Buffett, and the State of Wyoming, U.S. to site its Natrium fast reactor demonstration project there.
- Moreover, since it falls within the “advanced” small modular reactor project of the U.S. Department of Energy (DOE), the Department will subsidise the project to the extent of $80 million this year.
- Mr. Gates believes that the fast breeder reactors will replace the current reactors.
- The DOE and other nuclear enthusiasts also believe that small, factory-built, modular reactors will be cheaper and safer, and will be so attractive to foreign buyers.
The impact of Fukushima Daiichi accident on nuclear power situation
- The Fukushima Daiichi accident in Japan on March 11, 2011 completely transformed the nuclear power situation.
- Countries phased out nuclear power: As the global community turned its attention to strengthening nuclear safety, several countries opted to phase out nuclear power.
- The nuclear industry was at a standstill except in Russia, China and India.
- Liability clause in India: Even in India, the expected installation of imported reactors did not materialise because of our liability law and the anti-nuclear protests in proposed locations.
- India had to go in for more indigenous reactors to increase the nuclear component of its energy mix.
Regaining place as a climate-friendly energy option
- Two factors have contributed to the emergence of nuclear power as a climate-friendly energy option once again after the Fukushima Daiichi accident:-
- 1) Intensive efforts to strengthen nuclear safety, and
- 2) Threat of global warming is becoming ever more apparent.
- Countries such as Japan and Germany reopened their reactors to produce energy.
- Organisations such as the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) recognise the ability of nuclear power to address major global challenges.
Challenges ahead
- Delay in adoption: Even as IPCC and IEA recognise the importance of nuclear power, it remains uncertain whether the value of this clean, reliable and sustainable source of energy will achieve its full potential any time soon.
- Policy and financing framework issue: In some major markets, nuclear power lacks a favourable policy and financing framework that recognise its contributions to climate change mitigation and sustainable development.
- Without such a framework, nuclear power will struggle to deliver on its full potential, even as the world remains as dependent on fossil fuels.
Concerns with Gates plan
- Proliferation risk: TerraPower announced in March that Natrium would be fuelled with uranium enriched to 20% U-235 rather than explosive plutonium.
- The critics believe that there will be a rush to make 20% enriched uranium world wide.
- The main objection to nuclear enrichment beyond a point in Iran arises from the fact that it would lead to weapon-grade uranium being available for them.
- Facilitates the production of material used as nuclear explosives: The other objection being raised against is that the principal reason for preferring fast reactors is to gain the ability to breed plutonium.
- That is surely what foreign customers will want.
- The way it is configured, the reactor would make and reuse massive quantities of material that could also be used as nuclear explosives in warheads.
- Focus on India and China: The opponents of TerraPower believe that India and China will be encouraged in their efforts to develop fast breeder reactors and may even want to buy them from Mr. Gates.
- India’s fast breeder reactor, which is not subject to international inspections, is seen as capable of feeding the nuclear weapons capability of India.
Conclusion
With the threat of global warming due to climate change amplifying with each coming day, the world needs to take a serious relook at the adoption of nuclear technology.
Back2Basics: What is a fast breeder reactor?
- This special type of reactor is designed to extend the nuclear fuel supply for electric power generation.
- Whereas a conventional nuclear reactor can use only the readily fissionable but more scarce isotope uranium-235 for fuel, a breeder reactor employs either uranium-238 or thorium, of which sizable quantities are available.
- Uranium-238, for example, accounts for more than 99 percent of all naturally occurring uranium.
- In breeders, approximately 70 percent of this isotope can be utilized for power production.
- Conventional reactors, in contrast, can extract less than one percent of its energy.
Natrium fast reactor demonstration project
- Natrium nuclear power plants represent a significant advance over the light water reactor plants in use today.
- The Natrium plant uses a sodium-cooled fast reactor as a heat source.
- This heat from the reactor is carried by molten salt from inside the nuclear island to heat storage tanks outside the reactor building, where it is utilized as needed for generating electricity or industrial processes.
- The net effect is that the overall plant can load follow, thus increasing the revenue and value of the plant while maintaining the optimum constant reactor power.
- At the same time the cost of the overall plant is reduced since many of the systems outside of the nuclear island need not be nuclear safety grade.
- The Natrium reactor enables these abilities because it operates in much higher temperature regimes than the light water reactor, thus pairing well to the temperature requirements of the molten salt heat transfer medium.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Minsky moment
Mains level: Paper 3- Policy intervention needed for recovery of economy
Context
In recent times, several economists have been arguing that the Government does not need to do anything with the economy. They argue that like after the Great Depression, the economy rebounded worldwide, and so will it with us. The argument is fallacious on four accounts:
Four factors that make recovery different from the recovery after the Great Depression
1) Demand destruction
- In the case of the Great Depression, demand was created by the Second World War effort, especially in the United States.
- Demand destruction: In the current scenario, the COVID-19 pandemic has resulted in demand destruction.
- This is because many jobs have been lost, and even where jobs were retained, there have been pay cuts.
- Both of these trends were confirmed in the Centre for Monitoring Indian Economy and other surveys.
Bright spot on export front
- The only bright spot in this dismal scenario is that the western world has spent a lot of money stimulating the economy.
- However, the Indian exporter face the challenge of rising freight costs and structural issues such as a strong rupee relative to major competitors.
- Only the Indian IT sector is placed well to capitalise on rising demand in the world markets.
2) Inflation and factors driving it
- India is suffering from stagnant growth to low growth in the last two quarters.
- As in the low initial base set by last year, almost any growth this year is seen as a significant growth percentage.
- Commodity prices and monetary policy: Inflation in India is being imported through a combination of high commodity prices and high asset price inflation caused by ultra-loose monetary policy followed across the globe.
- Liquidity infusion: RBI is infusing massive liquidity into the system by following an expansionary monetary policy through the G-SAP, or Government Securities Acquisition Programme.
- Foreign portfolio investors have directed a portion of the liquidity towards our markets.
- India has a relatively low market capitalisation, therefore, India cannot absorb the enormous capital inflow without asset prices inflating.
- Supply chain issues: Additionally, supply chain bottlenecks have contributed to the inflation we see in India today.
- Rising fuel prices: India’s usurious taxation policy on fuel has made things worse.
- Rising fuel prices percolate into the economy by increasing costs for transport.
Impact of inflation
- The middle and lower-middle-class get destitute due to regressive indirect taxes and high inflation, with their wealth eroding due to said inflation.
- Especially in the case of the lower middle class, inflation is lethal as they do not have access to any hard assets, including the most fundamental hard asset, gold.
- The increase in fuel prices will also lead to a rise in wages demanded as the monthly expense of the general public increases.
- This leads to the dangerous cycle of inflation and depleting growth.
3) Interest Rate
- The only solution for any central banker once he realises that inflation is entrenched is tightening liquidity and further pushing the cost of money.
- If this does not dampen inflation, repo rates will need to go up later this year or early next year.
- Tightening the money supply is a painful act that will threaten to decimate what is left of our economy.
- Rising interest rates lead to a decrease in aggregate demand in a country, which affects the GDP.
- There is less spending by consumers and investments by corporates.
4) Rising NPA and its impact on credit growth
- Rising interest rates, lack of liquidity, and offering credit to leveraged companies instead of direct subsidies to support small and medium-sized enterprises (SMEs) and micro, small and medium enterprises (MSMEs) to counter the COVID-19 pandemic and its effects will result in NPAs of public sector banks climbing faster.
- Our small and medium scale sector is facing a Minsky moment.
- The Minsky moment marks the decline of asset prices, causing mass panic and the inability of debtors to pay their interest and principal.
- India has reached its Minsky moment.
- This means that the public sector unit and several other banks will need capital in copious amounts to make up for bad debt.
- The Union government’s Budget is in no position to infuse large amounts of capital.
- As a result of the above causes, credit growth is at a multi-year low of 5.6%.
Way forward
- Indian economy is in a vicious cycle of low growth and higher inflation unless policy action ensures higher demand and growth.
Conclusion
In the absence of policy interventions, India will continue on the path of a K-shaped recovery where large corporates with low debt will prosper at the cost of small and medium sectors. This means lower employment as most of the jobs are created by the latter.
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