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

Is India prepared for crude oil eventualities?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Import of crude oil and its proportion in total consumption.

Mains level: Paper 3- Energy security.

The era we are living in is reigned by the uncertainties. And the oil market is not immune to these uncertainties. Against this background, India’s energy security is discussed in this article. Switching to the “just in case” needs with respect to crude oil is suggested by the author. But, that would require capital. So, how could the problem of capital be solved? Read the article to know…

Switching from just in time to just in case

  • The post-COVID “world (will be) switching from just in time to just in case”  said economist Alan Kirman.
  • This is more so for the Indian petroleum sector.
  • The decision-makers of this sector should switch to a “just in case” policy mode.

Oil market: Land full of uncertainties

  • The oil market is in no man’s land. Few speak with conviction about its future trajectory.
  • Last month, it dropped into negative territory for a day in the USA.
  • But today the price of the same crude quality is above $30/barrel.
  • If one reads the commentary of experts, some predict that prices will soon cross $50/barrel while some predict price-crash to below $20/barrel.
  • The fine print of these reports is always caveated with the disclaimer, “it all depends” on one or more of the comparably uncertain variables.
  • These variables include economic growth, geopolitics — US-China relations, the timing of the development of an anti-COVID vaccine or a combination of all these variables.
  • The fact is no one really knows how the petroleum sector will fare in the “new normal” of the post-COVID world.

The problems policy-makers face: some known, some unknown

  • Policy-makers know that irrespective of the twists and turns in the petroleum market, India will need fossil fuels (coal, oil and gas) to drive its economic growth for at least the next decade, if not longer.
  • And that a sizeable percentage of these requirements will have to be imported.
  • The country does not have the geology to expect gushers especially in an environment of volatile (and relatively low) oil prices.
  • What must also be discomforting is the “known unknown” of the post-COVID stress.
  • They know that COVID has knocked the props from under the Indian economy.
  • They also know that every petroleum company, irrespective of whether it is in the private or public sector, will face an increasingly uncertain and challenging future business environment.
  • What they do not know is the nature of these challenges, and therefore, the conditions, sine qua non, for managing them.

Let’s look at some facts and figures of India’s crude oil requirements

  • India consumes around 50,00,000 barrels of crude oil every day.
  • Of that, it imports approximately 45,00,000 barrels/day making the country the third-largest crude market in the world.
  • Every month, on average, 70 loaded VLCC (very large crude carriers ) — accounting for 10 per cent of the global tanker market — bring crude oil to India.
  • Approximately 60 per cent of this oil is discharged in and around the Jamnagar area and then carried by pipelines to refineries in Jamnagar, Mathura, Panipat, Bina and Bhatinda.
  • And 50 per cent or so is sourced from Saudi Arabia, Kuwait, Abu Dhabi, Iran and Iraq.
  • It is against this background of post-COVID uncertainties and above facts India should consider switching to “just in case” policy mode.

Why should India consider switching to “just in case” policy mode?

We should analyse this by considering two scenarios

  • ONGC/OIL are strategically important PSUs.
  • Few have questioned the support to these two companies and the importance of harnessing our indigenous oil and gas reserves.
  • Until now, this support has been premised on the view that oil supplies are relatively scarce and that prices will trend upwards.

1) Low oil prices scenario

  • 1) We now need to ask: What if, “just in case” the oil market is structurally oversupplied and prices fall to such low levels that it makes no commercial sense for ONGC/OIL to expend public resources on “ high risk, high cost” exploration?
  • Oil and gas are, after all, tradables and can be purchased on the high seas.
  • Should they not, given this possibility, contemplate redefining their core purpose and perhaps pivot away from oil and gas towards clean energy?

2) Choking of supply lines scenario

  • Looked at through a different lens but with a “just in case” mindset, the preponderance of crude supplies sourced from countries facing deep political, economic and social tensions raises the question:
  • What if these domestic problems choked our access?
  • How would we manage the disruption?
  • Our decision-makers have worried about supply security for decades.
  • But the circumstances created by COVID are new.
  • The issue of strategic reserves could, for instance, acquire a different hue.
  • We have currently 11 days of reserve cover (5.33 million tonnes) with plans to increase it to 24 days (11.83 million tonnes).
  • Were we to decide to build up these reserves to levels comparable to other countries of between 70 to 100 days of import cover, the issue would be capital.
  • Given the slowdown of the economy and the pressures on the exchequer, the government would not have the financial resources to invest in the creation of additional facilities.
  • The only way this financial hurdle could be overcome is if the government and the private sector invest jointly.
  • This collaborative option would have to be considered to counter the “just in case” contingency of prolonged and major disruption.
  • And if indeed such an option were acceptable, it could be extended to cover trading, crude purchases, co-freighting, subject of course to anti-trust and competition rules.

Consider the example to understand the importance of “just in case” thinking

  • An example to embed the importance of “just in case” thinking can be drawn from the geopolitics of our neighbourhood.
  • What if the relations between India/Pakistan/China took an ugly turn?
  • What security measures should we contemplate to protect the petroleum assets located in Mumbai and Jamnagar?

Consider the question “Over the decades, India has been grappling with the issue of energy security. With the rising uncertainties around the world, the issue has gained more prominence. In light of this, suggest the ways to tide over the disruption in oil supplies.”

Conclusion

In the backdrop of COVID, when all hands on decks are needed to tackle the “urgent” task of reviving the economy, the government must not, in the process, lose sight of the “importance” of creating, if nothing else, the mindset of preparedness to respond to “just in case outcomes”.

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Coronavirus – Economic Issues

Using COVID crisis to reorient India towards reforms

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Provision for various sectors in stimulus package

Mains level: Paper 3-Comparison of of stimulus package of India with other economies.

Following the announcement of relief and stimulus package, the debate began over its various aspects. This article assesses the various aspects of the package and draws comparison with the package announced by the other countries. So, how does India fare compared with other countries?

Fiscal component of  stimulus package

  • According to the IMF-PT (policy tracker), the fiscal component of the Indian package is estimated to be at least 3.5 per cent of GDP as expenditure for poor households, migrant workers and agriculture.
  • There is an additional 0.5 per cent of GDP for states to spend unconditionally, bringing the fiscal package excluding loans to businesses to at least 4 per cent of GDP.
  • The support for businesses (MSMEs) is estimated to be 2.7 per cent of GDP.
  • Of this, at least 2 per cent of GDP is in the form of 100 per cent credit guarantees and equity infusion.

Comparison with major emerging economies

  • Among major developing economies, only Brazil -8 per cent of GDP– and Peru -7 per cent of GDP– have a fiscal stimulus higher than the 5 per cent level for India.
  • The Brazil estimate includes about 3 per cent of GDP as working capital loans to businesses and households.
  • The fiscal support level for some important emerging economies is — China 2.5 per cent of GDP and Indonesia 3.5 per cent.

Why it is difficult to segregate the stimulus package?

  • While comparing the fiscal stimulus packages across countries, it is important to understand that such packages are in the nature of additional spending and tax reliefs.
  • Which can work directly through aggregate demand or indirectly by mitigating risk and enhancing access to fund.
  • Access to fund is ensured in the nature of credit guarantees to financial institutions and non-financial enterprises
  • A large number of fiscal stimulus packages announced by different countries contain credit guarantees to financial institutions, SMEs, and agriculture.
  • Hence, it is difficult to segregate fiscal stimulus into its pure and impure components.
  • Most economists, and international organisations, recognise that fiscal stimulus consists of both the pure and impure.
  • And includes three broad items — a direct “above-the-line” component, a “below-the-line” component and guarantees of various forms primarily credit.
  • The choice of using only one component of the fiscal stimulus is selective and highly inappropriate.

India as a positive fiscal stimulus outlier

  • To put the packages into perspective, the average of all fiscal measures in the G24 developing economies is equal to 3.6 per cent.
  • No matter how the calculation is done, India is a positive fiscal stimulus outlier; by IMF-PT calculations.
  • The stimulus is close to the largest among major emerging market economies.

So, how much rich countries are spending?

  • The rich nations are spending more — they can afford to. Japan announced what may be the upper limit to the expansion — 21.1 per cent of GDP.
  • However, this does include large elements of loans and credit guarantees.
  • Through a combination of several fiscal measures (tax deferrals, credit guarantees, etc.) the US has pledged close to 13 per cent of GDP.
  • The European Union, on average, has pledged 4 per cent of GDP.
  • The average for advanced countries is around 6 per cent of GDP.

Significance of monetary policy change made by RBI

  • The monetary policy change in India is quite significant.
  • The change paves the way for internationally competitive monetary policy.
  •  That is, real interest rates comparable to those prevalent in competitor economies.
  • The repo rate now stands at 4 per cent, with inflation well contained.
  • This is substantially a much different, and much-improved RBI response than that what occurred in 2008-09.
  • At that time, as a monetary counter to the financial crisis, the RBI reduced the repo rate by 425 basis points to 4.75 per cent.
  • This was done over seven months and the prevailing CPI inflation rate was 10 per cent.

Economic reforms as a part of stimulus package

  • India has announced several economic reforms as a part of the stimulus package.
  • These are long-awaited — freeing up of the labour market, allowing farmers to sell their produce and land to who they choose, removal of archaic laws like the Essential Commodities Act, with the promise of more to come.
  • This is not an empty promise — the Centre will advance another 1.5 per cent of GDP to states to expand spending.
  • This advance will be conditional on them for undertaking long-pending reforms.
  • The Indian fiscal package is reformist, well-disciplined and provides focused support; and if needed, there is still room for additional measures.

Conclusion

The Indian fiscal package is reformist, well-disciplined and provides focused support; and if needed, there is still room for additional measures. We should use the crisis to re-orient India towards its long-awaited destiny.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

What is the National Numbering Plan?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: TRAI, National numbering plan

Mains level: National numbering plan

The Telecom Regulatory Authority of India (TRAI) has recommended that a new National Numbering Plan be issued at the earliest so that a uniquely identifiable number can be provided to every subscriber in India.

The TRAI and Telecom Disputes Settlement and Appellate Tribunal are quite often seen in the news.  Most recent was the dispute risen due to AGR dues.

TRAI has a wide range of jurisdiction over Telecoms. Keep a track on all such news.

National Numbering Plan

  • The management of numbering resources is governed by the National Numbering Plan.
  • The Department of Telecom administers the numbers for fixed and the mobile networks based on the ITU’s Telecommunication Standardization Sector (ITU-T) recommendations.
  • TRAI has recommended automated allocation of numbering resources be done using number management system software to speed up the process

Broadly, the TRAI has recommended:

  • switching to an 11-digit mobile number,
  • reallocation of mobile numbering resources surrendered by operators who have shut shop and
  • prefixing zero for all mobile calls made from fixed line

Issues with 11 digit number

  • TRAI said that some serious problems are anticipated with a change in the mobile number from 10 to 11 digits.
  • Migrating to 11 digits would require widespread modifications in the configuration of switches involving cost.
  • This would also cause inconvenience to the customers in the form of dialling extra digits and updating phone memory.
  • This could lead to more dialling errors, traffic, and loss of revenue to telecom operators.

Still, why need a plan as such?

  • The total number of telephone subscribers in India stands at 1,177.02 million with a teledensity of 87.45% at the end of January 2020.
  • This increasing digitization would pave the way towards the dream of digital India and mobile economy.
  • Thus, it has become necessary to review the utilization of numbering resources in the country.
  • Considering the above scenario the implementation of the TRAI’s recommendation with solutions to possible issues would help for sustainable growth of the telecommunication services.
  • Hence TRAI needs to review the utilization of the numbering resources and make some policy decisions to ensure that adequate resources are available for sustainable growth of the telecom services.

Back2Basics: Telecom Regulatory Authority of India (TRAI)

  • The TRAI is a statutory body set up under section 3 of the Telecom Regulatory Authority of India Act, 1997.
  • It is the regulator of the telecommunications and its tariffs in India.
  • The TRAI Act was amended by an ordinance, effective from 24 January 2000, establishing a Telecom Disputes Settlement and Appellate Tribunal (TDSAT) to take over the adjudicatory and disputes functions from TRAI.
  • TRAI regularly issues orders and directions on various subjects such as tariffs, interconnections, quality of service, DTH services and mobile number portability.

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G20 : Economic Cooperation ahead

G-7

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G-20, G-7 members

Mains level: Significance of the these groups of counries and their say in global economy

Calling the existing Group of Seven (G-7) club a “very outdated group of countries”, US Prez. Trump said that he wanted to include India, Russia, South Korea, and Australia in the group.

Note the members of G7 and G20. UPSC may puzzle you asking which G20 nation isn’t a member of G7.

The Group of 7

  • The G-7 or ‘Group of Seven’ includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
  • It is an intergovernmental organisation that was formed in 1975 by the top economies of the time as an informal forum to discuss pressing world issues.
  • Initially, it was formed as an effort by the US and its allies to discuss economic issues.
  • The G-7 forum now discusses several challenges such as oil prices and many pressing issues such as financial crises, terrorism, arms control, and drug trafficking.
  • It does not have a formal constitution or a fixed headquarters. The decisions taken by leaders during annual summits are non-binding.
  • Canada joined the group in 1976, and the European Union began attending in 1977.

Evolution of the G-7

  • When it started in 1975—with six members, Canada joining a year later—it represented about 70% of the world economy.
  • And it was a cosy club for tackling issues such as the response to oil shocks.
  • Now it accounts for about 40% of global gdp.
  • Since the global financial crisis of 2007-09 it has sometimes been overshadowed by the broader g20.
  • The G-7 became the G-8 in 1997 when Russia was invited to join.
  • In 2014, Russia was debarred after it took over Crimea.

Expelling Russia

  • The G-7 was known as the ‘G-8’ for several years after the original seven were joined by Russia in 1997.
  • The Group returned to being called G-7 after Russia was expelled as a member in 2014 following the latter’s annexation of the Crimea region of Ukraine.
  • Since his election in 2016, President Trump has suggested on several occasions that Russia be added again, given what he described as Moscow’s global strategic importance.

Why Trump wants to expand the G7 group?

1.Joint  front against China

  •  The expanded G7 is seen as an attempt by the US to form a joint front against China.
  • The US President has stepped up his criticism of the Asian powerhouse over a range of issues, from initially holding back information on the coronavirus outbreak to its actions on Taiwan and changes in Hong Kong’s special status.

2.Pressure  from G7 countries

  • Another reason is Trump has faced heat from other G7 members in the last two summits, for various controversial decisions taken by him such as pulling out from trade deals, the Iran nuclear deal as well as the Paris climate pact.
  • Trump’s “America First” policy and his attacks on key US allies over various trade and economic issues have created faultlines within the grouping.

3.Add more weight to the grouping’s profile. 

The participation and eventual inclusion of Australia, South Korea, Russia (not favoured by the UK) and India could certainly add more weight to the grouping’s profile.

Why G7 needs a revival?

  • The rise of India, China, and Brazil over the past few decades has reduced the G-7’s relevance, whose share in global GDP has now fallen to around 40%.

Relevance of G7 for India

  • India will get more voice, more influence and more power by entering the G7.
  • After UN Security Council (UNSC), this is the most influential grouping.
  • If the group is expanded it will collectively address the humongous issues created by the Wuhan virus,
  • Diplomatically, a seat at the high table could help New Delhi further its security and foreign policy interests, especially at the nuclear club and UN Security Council reform as well as protecting its interests in the Indian Ocean.

Challenges in India’s entry

1.Lack of consensus:

  • The decision to expand the grouping cannot be taken by the US alone.
  • Other members such as the UK, France, Germany, Italy, Japan and Canada, have to not only agree to Trump’s proposal to expand the grouping but also on the new members that he wants to add, said a diplomatic source of one of the G7 member countries.

2.Upset China:

  • China is upset at the plans to expand the G7, stating that such actions will result in the creation of a “small circle” against Beijing and thus such a plan is “doomed to fail”.
  • China will put pressure on G-7 countries

Discipline China, not isolate it

  • Trump’s motivation in expanding the G-7 to include India and Russia while keeping China out is transparent.
  • If keeping China out was not the intention, the G-7 could easily have dissolved themselves and revitalised the presently inert G-20.
  • There are, of course, good reasons why Xi Jinping’s China requires to be put on notice for its various acts of omission and commission and disrespect for international law.
  • However, disciplining China is one thing, isolating it quite another.
  • If the new group is viewed as yet another arrow in the China containment quiver, it would place India and most other members of the group in a spot.
  • Everyone wants China disciplined, few would like to be seen seeking its isolation.
  • Asia needs a law-abiding China, not a sullen China.
  • Japan and Australia, have serious concerns about China’s behaviour.
  • But they may not like the new group to be viewed purely as an anti-China gang-up.
  • That may well be the case with South Korea too.
  • Indeed, even India should tread cautiously.
  • India has more issues with China than most others in the group, spanning across economic and national security issues and yet it should seek a disciplined China, not an isolated one.

So, what should be on the agenda of the new group?

  • The proposed expanded G7 group should define its agenda in terms that would encourage China to return to the pre-Xi era of global good behaviour.
  • The G-7 came into being in the mid-1970s against the background of shocks to the global financial and energy markets.
  • The G-12(proposed expanded group)  would come into being against the background of a global economic crisis and the disruption to global trade caused both by protectionism and a pandemic.
  • The two items on the next summit agenda would have to be the global response to the COVID-19 pandemic, the rising tide of protectionism and mercantilism and the global economic slowdown.
  • The summit will have to come forward with some international dos and don’ts to deal with the challenge posed by these disruptions.
  • New rules should apply to both the US and China: These new rules of international conduct would have to apply to both China and the US.
  • Widening the agenda: To be able to alter China’s behaviour without isolating it, the expanded group will have to widen their agenda.
  • Widening involves going beyond the purely economic issues that the G-7 originally focused on, and include climate change, health care and human rights.

Back2Basics: The G-20

  • The G-20 is a larger group of countries, which also includes G7 members.
  • The G-20 was formed in 1999, in response to a felt need to bring more countries on board to address global economic concerns.
  • Apart from the G-7 countries, the G-20 comprises Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, and Turkey.
  • Together, the G-20 countries make up around 80% of the world’s economy.
  • As opposed to the G-7, which discusses a broad range of issues, deliberations at the G-20 are confined to those concerning the global economy and financial markets.
  • India is slated to host a G-20 summit in 2022.

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Foreign Policy Watch: India-China

THAAD defence system

Note4Students

From UPSC perspective, the following things are important :

Prelims level: THAAD defence system

Mains level: THAAD and its features to define geopolitics

China has issued a statement reiterating its long-standing objections to the presence of the US THAAD missile defence system in South Korea.

Try this question from CSP 2018:

Q. What is “Terminal High Altitude Area Defense (THAAD)”, sometimes seen in the news?

(a) An Israeli radar system

(b) India’s indigenous anti-missile programme

(c) An American anti-missile system

(d) A defence collaboration between Japan and South Korea

What is THAAD?

  • THAAD is an acronym for Terminal High Altitude Area Defense, a transportable, ground-based missile defence system.
  • It is coupled with space-based and ground-based surveillance stations, which transfer data about the incoming missile and informs the THAAD interceptor missile of the threat type classification.
  • THAAD is alarmed about incoming missiles by space-based satellites with infrared sensors.
  • This anti-ballistic missile defence system has been designed and manufactured by the US company Lockheed Martin. South Korea is not the only country with the THAAD missile defence system.
  • It has been previously deployed in the UAE, Guam, Israel and Romania.

The South Korea-China controversy over THAAD

  • In South Korea, the THAAD missile defence system is operated by the US army stationed in the country.
  • The US had previously announced that the deployment of this missile defence system was a countermeasure against potential attacks by North Korea, particularly after the country had engaged in testing ballistic missiles.
  • In 2017, matters escalated in the Korean Peninsula after North Korea test-fired a few missiles in the direction of US bases in Japan.
  • Following this incident, the US amended its plans and moved the systems to its army base in Osan, South Korea while the final deployment site was being prepared.
  • These moves by the US and by extension, South Korea, particularly angered China.

China’s reservations against THAAD

  • China’s opposition has little to do with the missiles itself and is more about the system’s inbuilt advanced radar systems that could track China’s actions.
  • The controversy also has much to do with the geopolitics and complex conflicts in East Asia, with the US having a presence in the region particularly through its many military bases in Japan and South Korea.
  • According to some observers of East Asia, China believes the US exerts influence over South Korea and Japan and may interfere with Beijing’s long-term military, diplomatic and economic interests in the region.
  • The US and South Korea have consistently maintained that these missiles are only to counter potential threats by North Korea.
  • South Korea also issued a statement saying the number of missiles had not increased but had only been replaced with newer versions.

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Foreign Policy Watch: India-United States

The 5G Club ‘D10’

Note4Students

From UPSC perspective, the following things are important :

Prelims level: D10 Club

Mains level: Not Much

Britain said that it was pushing the U.S. to form a club of 10 nations that could develop its own 5G technology and reduce dependence on Huawei.

We can expect prelims question asking the purpose of the D10 group like-

Q. The D10 Club recently seen in news is a- Environment NGO/ Group of Democracies/ etc.

The D10 Club

  • The Britain is proposing a ‘D10’ club of democratic partners that groups the G7 nations with Australia and the Asian technology leaders South Korea and India.
  • It would include G7 countries – UK, US, Italy, Germany, France, Japan and Canada – plus Australia, South Korea and India.
  • It is aimed for channelling investments into existing telecommunication companies within the 10 member states.
  • The group aim to create alternative suppliers of 5G equipment and other technologies to avoid relying on China.

Ruling out Huawei

  • Britain has allowed the Chinese global leader in 5G technology to build up to 35% of the infrastructure necessary to roll out its new speedy data network.
  • But their PM Boris Johnson was reported to have instructed officials to draw up plans to cut Huawei out of the network by 2023 as relations with China sour.

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Wildlife Conservation Efforts

In news: Dibru-Saikhowa National Park (DSNP)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Dibru-Saikhowa National Park

Mains level: NA

The Oil India Ltd (OIL) leak in Assam has contaminated water bodies that flow into the Maguri Motapung Beel, a large wetland, and the Dibru-Saikhowa National Park (DSNP).

Try this PYQ from CSP 2019:

Q. Which of the following are in Agasthyamala Biosphere Reserve?

(a) Neyyar, Peppara and Shendurney Wildlife Sanctuaries; and Kalakad Mundanthurai Tiger Reserve

(b) Mudumalai, Sathyamangalam and Wayanad Wildlife Sanctuaries; and Silent Valley National Park

(c) Kaundinya, Gundla Brahme-swaram and Papikonda Wildlife Sanctuaries; and Mukurthi National Park

(d) Kawal and Sri Venkateswara Wildlife Sanctuaries; and Nagarjunasagar-Srisailam Tiger Reserve

About Dibru-Saikhowa National Park

  • DSNP is a national park in Assam located in Dibrugarh and Tinsukia districts.
  • It was designated a Biosphere Reserve in July 1997 with an area of 765 sq.km.
  • The park is bounded by the Brahmaputra and Lohit Rivers in the north and Dibru river in the south.
  • It mainly consists of moist mixed semi-evergreen forests, moist mixed deciduous forests, canebrakes and grasslands.
  • It is the largest Salix swamp forest in north-eastern India, with a tropical monsoon climate with a hot and wet summer and cool and usually dry winter.

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New Species of Plants and Animals Discovered

Species in news: Band-tail Scorpionfish

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Band-tail scorpionfish

Mains level: NA

A rare band-tail scorpionfish was recently found in the Gulf of Mannar.

A stand-alone species being mentioned in the news for the first time (and that too from Southern India) find their way into the prelims. Make special note here. Usually, note the species and its habitat location (IUCN status if available), in the purview of a generic prelims question.

Band-tail scorpionfish

  • The band-tail scorpionfish (Scorpaenospsis neglecta) camouflages within the seagrass meadows.
  • It is well-known for its stinging venomous spines and ability to change colour.
  • The fish has the ability to change colour and blend with its surrounding environment to escape from predators and while preying.
  • The fish is called ‘scorpionfish’ because its spines contain neurotoxic venom.

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Foreign Policy Watch: India-Australia

Anchoring the ties with Australia the virtual way

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Mutual Logistic Support Agreement, AUSINDEX

Mains level: Paper 2- India-Australia relations.

India-Australia relations have been growing in depth and diversity. Though two countries have been collaborating in various areas there is still potential to be realised in many areas. This article discusses the India-Australia ties. The area in which the two countries are collaborating and scope to further it.

Relations with much potential

  • Mr. Modi convened a virtual multilateral summit to bring South Asia together to face the pandemic, and he also spoke online with G-20 leaders on similar issues.
  • On June 4, India will have its first virtual bilateral summit with Australia.
  • The convergence of interests and values has been patently obvious.
  • But the time has also come to translate that potential into reality.

So, let’s see how India and Australia are expanding the scope of cooperation

  • 1) The two countries have sought to reconstruct their increasingly turbulent regional geography in the Indo-Pacific and see the Quad (with Japan and the United States) as the most potent instrument to promote cooperation.
  • The Quad, not surprisingly has been causing apprehensions in Beijing.
  • 2) It is expected that the ‘Mutual Logistics Support Agreement’ will be signed during the summit.
  • That should enhance defence cooperation and ease the conduct of large-scale joint military exercises.
  • 3) Last April, Australia and India conducted AUSINDEX, their largest bilateral naval exercise.
  • And there are further developments on the anvil, including Australia’s permanent inclusion in the Malabar exercise with Japan.
  • 4) It may be prudent too for New Delhi and Canberra to elevate the ‘two plus two’ format for talks from the Secretary level to the level of Foreign and Defence Ministers.

Now, let’s look at the cooperation in areas that matter to the lives of the people of the countries-

1) Pandemic control through controlled adaptation:  Lesson from Australia

  • Australia is one of the few countries that has managed to combat COVID-19 so far through “controlled adaptation” by which the coronavirus has been suppressed to very low levels.
  • Two of the leaders of this great Australia-wide effort are Indian-born scientists.
  • There is much that the two Prime Ministers can share on this front.

2) Collaboration in  health, safe food and supply chains

  • In terms of health and safe food as well the supply chains that facilitate their delivery, there are important lessons to be learnt.
  • One of Australia’s richest businessman and first patron of the Australia-India Leadership Dialogue recently described the promise of DTC-CPG (direct to consumer; consumer packaged goods) which could transform global supply chains.
  • Here too there is much room for collaboration and new thinking.

3) Higher education

  • The recovery of Australia’s universities, most of which are publicly funded and many rank among the top in the world, is still in question.
  • But they are proving to be resilient and pioneers in distance and online learning.
  • Australian universities could well open earlier than most and emerge as a safer destination for quality education than their European or Ivy league counterparts.

Consider the question “India’s relations with Australia have of late acquired a dept and diversity which is visible in their cooperation in diverse areas. Comment.”

Conclusion

As India and Australia with shared values try to bring about fresh order in a turbulent world, the virtual summit, in this sense, could not have been better timed.

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Foreign Policy Watch: India-China

China and the Rhineland moment in Hong Kong

Note4Students

From UPSC perspective, the following things are important :

Prelims level: G-7 countries, TPP

Mains level: Paper 2- US-China relations and implications for India

While the world is busy battling pandemic, China has embarked upon completing its pet project: stripping Hong Kong off its special status. This article explains the significance of China’s actions. And the options the U.S. could explore as a response to China’s move.

Tipping points in History

  • In 1911 Germany sparked an international crisis when it sent a gunboat into the Moroccan port of Agadir.
  • Winston Churchill wrote in his history of the First World War, “all the alarm bells throughout Europe began immediately to quiver.”
  • In 1936 Germany provoked another crisis when it marched troops into the Rhineland, in flagrant breach of its treaty obligations.
  • In 1946, the Soviet Union made it obvious it had no intention of honoring democratic principles in Central Europe, and Churchill was left to warn that “an iron curtain has descended across the Continent.”

Analogies: Not perfect, but not inapt, either.

  • Analogies between these past episodes and China’s decision this week to draft a new national security law on Hong Kong aren’t perfect.
  • First, Hong Kong is a Chinese port, not a faraway foreign one.
  • Second, Hong Kong’s people have ferociously resisted Beijing’s efforts to impose control, unlike the Rhineland Germans who welcomed Berlin’s.
  • And lastly, the curtailment of freedom that awaits Hong Kong is nothing like the totalitarian tyranny that Joseph Stalin imposed on Warsaw, Budapest and other cities.
  • But the analogies aren’t inapt, either.
  • Beijing has spent the better part of 20 years subverting its promises to preserve Hong Kong’s democratic institutions.
  • Now it is moving to quash what remains of the city’s civic freedoms through a forthcoming law that allows the government to punish speech as subversion and protest as sedition.
  • The concept of “one country, two systems,” was supposed to last at least until 2047 under the terms of the 1984 Sino-British Joint Declaration.
  • Now China’s rulers have been openly violating that treaty, much as Germany openly violated the treaties of Locarno and Versailles.

Rethink of the U.S. strategic approach to China

  • US administration has undertaken a sober rethink of it’s strategic approach to China.
  • The outlines of which are described in a new inter-agency document quietly released by the White House last week.
  • Gone from this new vision are the platitudes about encouraging China’s “peaceful rise” as a “responsible stakeholder” in a “rules-based order.”
  • Instead, Beijing is described, accurately, as a habitual and aggressive violator of that order.
  • It also describes China as a domestic tyrant, international bully and economic bandit that systematically robs companies of their intellectual property, countries of their sovereign authorities, and its own people of their natural rights.
  • A critic might note that this description of China’s behavior sounds a lot like Trump’s.
  • Sort of, except that the comparison trivializes the scale of China’s abuses and neglects the breadth and longevity of its challenge.

Why Now and what is the US response?

  • Beijing almost certainly chose this moment to strike because it calculated that a world straining under the weight of a pandemic and a depression lacked the will and attention to react.
  • On Friday, Trump said he would strip Hong Kong of its privileged commercial and legal ties to the U.S.
  • Issue with the move: That punishes the people of Hong Kong at least as much as it does their rulers in Beijing.

What’s a better course for the U.S.? A few ideas:

  • Sanction Chinese officials engaged in human-rights abuses in Hong Kong under the Global Magnitsky Act.
  • Upgrade relations with Taiwan and increase arms sales, including top-shelf weapons’ systems such as the F-35 and the Navy’s future frigate.
  • Re-enter the Trans-Pacific Partnership (TPP)agreement as a counter to China’s economic influence.
  • Publicly press all G-7 countries to stop doing business with telecom-giant Huawei as a meaningful response to the Hong Kong law.
  • Give every Hong Kong person an opportunity to easily obtain a U.S. residency card, even a passport.

Conclusion

If all this and more were announced now, it might persuade Beijing to pull back from the brink. In the meantime, think of this as  Rhineland moment with China — and remember what happened the last time the free world looked aggression in the eye, and blinked

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

Three thresholds in Industrial Disputes Act that need revision

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Industrial Disputes Act 1947

Mains level: Paper 2- Threshold limits in IDA and issues with it.

Sometimes the measures we come up with end up doing exactly the opposite of what they were supposed to do. This might be the case with some provisions in the Industrial Dispute Act. This article deals with 3 such provisions in the IDA. So, what are these provisions? How the issues caused by these provisions could be resolved? Read to know more…

How provisions of IDA could be detrimental?

  • What made so many migrants suddenly long for their village after lockdown?
  • The answer lies in our Industrial Disputes Act (IDA), the motherboard of our labour laws.
  • IDA has encouraged short-term employment, low skills and zero security.
  • It did this by setting up thresholds which disincentivised long-term commitment of workers to entrepreneurs and vice versa.
  • It also kept firms informal and unwilling to invest in human capital.
  • This is why when the lockdown happened, it turned into a migrant crisis.

Let’s look at  3 thresholds in IDA that are causing harm

  • 1) Hire more than 99 workers, and you will have to notify the government before you can fire any one of them.
  • 2) Hire more than 20 and you open yourself up to provident fund commitments and bonus payments.
  • 3) If you want to deny workers severance pay, never keep them continuously employed for more than 240 days.

So, how IDA ends up discouraging formalisation?

  • Given these provisions in the IDA, entrepreneurs are reluctant to hire more than 99 workers for over 240 days.
  • The employers are naturally tempted to observe these thresholds and duck under the radar.
  • This is made easier by the fact that these thresholds mesh well with the fear that the middle-class — and upwards — have of a working-class takeover.
  • As a result, these thresholds have only encouraged the informal sector, where both unregistered labour and unregistered entrepreneurs dominate.
  • It has led to the proliferation of informal enterprises and low-skill workers.
  • In the first 15 years of this century itself, over half the increase in total employment has been that of contract workers.
  • This has also led to a phenomenal rise in MSMEs as the IDA has discouraged entrepreneurs from harbouring any ambitions to grow big and formal.
  • The MSMEs have, consequently, increased in number from 3.6 crore units in 2012 to about 6 crore today.
  • Since there are constraints on both the workforce size and duration of employment, upskilling and R&D naturally become early casualties.
  • India spends only 0.7 per cent of its GDP in R&D, one of the lowest in the world, while South Korea spends 4.2 per cent.

Contribution of MSME in GDP is not increasing

  • Over 94 per cent of MSMEs are in the Micro sector and their contribution to GDP is just not measuring up.
  • In 2012, MSMEs produced 37.54 per cent of our GDP.
  • But this number fell to 30.7 per cent in 2015, and in 2019 it decreased further to 29.7 per cent, though they are still working full throttle.
  • Yet, the lure to stay on the good side of the IDA thresholds is so compelling that even formal units are today outsourcing from the informal ones.
  • Over time, the IDA has succeeded in converting a large number of organised sector companies into strange, hybrid economic creatures, both fishy and foul.

But, how removal of the 3 thresholds will change the situation?

  • If the 3 mentioned thresholds are removed, every worker — regardless of factory size — is entitled to the same rights.
  • Likewise, every employer, regardless of factory size, can hire and fire workers.
  • There is greater freedom on both sides, but this freedom comes with a price that does not discourage either size or skills in an enterprise.
  • The worker can now be fired without notifying the government, but must be compensated with severance wages, regardless of the size of the firm.
  • Also, unlike the IDA, all the firms must have a formal dispute resolution board.
  • Now that the enterprises have been freed of the size threshold, entrepreneurs get no advantage in dwarfing their firms.
  • Other reforms can soon follow, such as allowing for workers’ representation in a firm’s supervisory board, as it happens in Germany.
  • Measures such as these create trust between employees and employers, and also remove the threatening spectre of a working-class strike.

Consider the question “Various provision of the Industrial Disputes Act which were enacted but with a different purpose now seems to place both the workers and employers in a disadvantageous position. In light of this statement, examine the issues with the threshold limits of the number of employees and number of employment days in the Industrial Disputes Act.”

Conclusion

In the ultimate analysis, the IDA does not produce winners, only losers. The workers remain skill-stunted and insecure, and the entrepreneurs, too, pull back from releasing their much-vaunted “animal spirits”. So, the IDA thresholds must go and not be merely fiddled with, as some states have done.


Back2Basics: Industrial Disputes Act 1947

  • The main purpose of the Industrial Disputes Act, 1947 is to ensure fair terms between employers and employees, workmen and workmen as well as workmen and employers.T
  • The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing machinery and procedure for the investigation and settlement of industrial disputes by negotiations.

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Direct Benefits Transfers

How would Direct Benefit Transfer (DBT) of power subsidy work?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not Much

Mains level: Read the attached story

Context

  • Punjab has been providing free power to the agriculture sector.
  • The new Electricity Amendment Bill 2020 has proposed providing subsidy on power to farmers through DBT, which is contrary to the prevailing ‘free power’ system in Punjab.

Free or subsidised power is being provided to millions of consumers in almost every state. Punjab is no exception but its free power scheme is. Other states can learn from the example of Punjab, here.

Practice questions for mains:

Q. Discuss the efficacy of Direct Benefit Transfer in power subsidy for farmers.

Punjab on knees

  • Before it submits suggestions regarding the Electricity Amendment Bill 2020, recently drafted by the Union Power Ministry to amend the Electricity Act 2003, a big challenge lies ahead for the Punjab government.
  • Under the garb of DBT, it is a move to stop the free power supply to them.

What is the current system of power subsidy for farmers in Punjab?

  • At present, Punjab is supplying free power to 14.16 lakh electricity-run tubewells of the agriculture sector which are getting power through 5,900 Agricultural Pumpset Feeders (APFs).
  • These APFs are metered and the Punjab Power Corporation charges the state government for consumed units recorded in metered APFs.

The Free Power Scheme

  • Farmers are getting power supply for their Kharif and Rabi crops from these feeders as per the recommendations of the Punjab Agriculture University (PAU), Ludhiana.
  • It is supplied for around eight hours every day in Kharif season and four hours on alternate days during Rabi crop season.
  • The state government pays around Rs 6,000 crore power subsidy bill to Power Corporation every year under the scheme to the farming sector.

What would change under the DBT allowed under the new Electricity Bill 2020?

  • Under DBT, farmers will have to pay the bill for the power consumed for agriculture purposes.
  • After that, they will get the subsidy in their bank accounts through DBT.
  • A meter would be installed on every individual tubewell.

Issues with Punjab farmer

  • Approximately the annual power bill will come to around Rs 46,000 to Rs 48,000, and farmers are required to pay a bill of Rs 4,000 per month.
  • In Punjab, 67 per cent of farmers come under the small and marginal categories with 1-2 hectares land.
  • Paying bills in advance is not possible for them due to debt.
  • If farmers don’t pay their bills, the department will disconnect their connection, which could lead to farmers’ agitation.

Can it work like DBT on LPG gas cylinders?

  • The bill suggests the subsidy be paid directly to consumers in cash on the pattern of LPG subsidy.
  • This proposal should be tried in a pilot project and if results are encouraging, only then it should be included in the amendment bill.
  • It is not feasible to provide meters on every pump set up across the country and then give cash subsidy every month after the consumer has paid the bill.

Punjab government’s own DBT scheme titled ‘Paani Bachao Paisa Kamao’ is also working here. How it is different from DBT under the new Bill?

  • The Punjab government’s scheme is a voluntary one.
  • The farmers who have adopted it need to get install a power meter on their tubewell but are not required to pay any power bill.
  • The main purpose of PBPK is to save groundwater by using it judiciously because, under the traditional system, several farmers are misusing the water by over-irrigating the crops due to free power available to them.

What do farmers’ organisations think of this?

  • Farmers’ organisations say that if the Punjab government agrees to this bill, they will fight it tooth and nail.
  • From where will poor farmers pay such heavy bills when they get an income after six months following the sale of their crop, they ask.
  • Anywhere in the world, the agrarian sector cannot run without the support of the government as it is the base of every human being who is dependent on farmers’ produce from his/her morning tea to dinner.

Back2Basics

[pib] Draft Electricity Act (Amendment) Bill, 2020

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Electoral Reforms In India

Delimitation Commission for NE states and UTs

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Delimitation Commission

Mains level: Delimitation of constituencies

Lok Sabha speaker has nominated 15 MPs to assist the Delimitation Commission in redrawing the Lok Sabha and the Assembly constituencies of the northeastern states and the Union Territories.

Practice question for mains:

Q. What is the Delimitation of Constituencies? Discuss its significance.

What is Delimitation? Why is it needed?

  • Delimitation is the act of redrawing boundaries of Lok Sabha and state Assembly seats to represent changes in population.
  • In this process, the number of seats allocated to different states in Lok Sabha and the total number seats in a Legislative Assembly may also change.
  • The main objective of delimitation is to provide equal representation to equal segments of a population.
  • It also aims at a fair division of geographical areas so that one political party doesn’t have an advantage over others in an election.

Legal status

  • Delimitation is carried out by an independent Delimitation Commission (DC).
  • The Constitution mandates that its orders are final and cannot be questioned before any court as it would hold up an election indefinitely.

How is delimitation carried out?

  • Under Article 82, the Parliament enacts a Delimitation Act after every Census.
  • Once the Act is in force, the Union government sets up a DC made up of a retired Supreme Court judge, the Chief Election Commissioner and the respective State Election Commissioners.
  • The Commission is supposed to determine the number and boundaries of constituencies in a way that the population of all seats, so far as practicable, is the same.
  • The Commission is also tasked with identifying seats reserved for Scheduled Castes and Scheduled Tribes; these are where their population is relatively large.
  • All this is done on the basis of the latest Census and, in case of difference of opinion among members of the Commission, the opinion of the majority prevails.

Implementation

  • The draft proposals of the DC are published in the Gazette of India, official gazettes of the states concerned and at least two vernacular papers for public feedback.
  • The Commission also holds public sittings.
  • After hearing the public, it considers objections and suggestions, received in writing or orally during public sittings, and carries out changes, if any, in the draft proposal.
  • The final order is published in the Gazette of India and the State Gazette and comes into force on a date specified by the President.

How often has delimitation been done in the past?

  • The first delimitation exercise in 1950-51 was carried out by the President (with the help of the Election Commission).
  • The Constitution at that time was silent on who should undertake the division of states into Lok Sabha seats.
  • This delimitation was temporary as the Constitution mandated redrawing of boundaries after every Census. Hence, delimitation was due after the 1951 Census.

Why more independence to DC?

  • Pointing out that the first delimitation had left many political parties and individuals unhappy, the EC advised the government that all future exercises should be carried out by an independent commission.
  • This suggestion was accepted and the DC Act was enacted in 1952.
  • DCs’ has been set up four times — 1952, 1963, 1973 and 2002 under the Acts of 1952, 1962, 1972 and 2002.
  • There was no delimitation after the 1981 and 1991 Censuses.

Why postponed till 2026?

  • Although the freeze on the number of seats in Lok Sabha and Assemblies should have been lifted after the 2001 Census, another amendment postponed this until 2026.
  • This was justified on the ground that a uniform population growth rate would be achieved throughout the country by 2026.
  • So, the last delimitation exercise — started in July 2002 and completed on May 31, 2008 — was based on the 2001 Census and only readjusted boundaries of existing Lok Sabha and Assembly seats and reworked the number of reserved seats.

Back2Basics: History of Delimitation in J&K

  • Delimitation of J&K’s Lok Sabha seats is governed by the Indian Constitution, but the delimitation of its Assembly seats (until special status was abrogated recently) was governed separately by its Constitution and J&K Representation of the People Act, 1957.
  • As far as the delimitation of Lok Sabha seats is concerned, the last DC of 2002 was not entrusted with this task. Hence, J&K parliamentary seats remain as delimited on the basis of the 1971 Census.
  • As for Assembly seats, although the delimitation provisions of the J&K Constitution and the J&K RP Act, 1957, are similar to those of the Indian Constitution and Delimitation Acts.
  • They mandate a separate DC for J&K. In actual practice, the same central DC set up for other states was adopted by J&K in 1963 and 1973.
  • While the amendment of 1976 to the Indian Constitution suspended delimitation in the rest of the country till 2001, no corresponding amendment was made to the J&K Constitution.
  • Hence, unlike the rest of the country, the Assembly seats of J&K were delimited based on the 1981 Census, which formed the basis of the state elections in 1996.
  • There was no census in the state in 1991 and no DC was set up by the state government after the 2001 Census as the J&K Assembly passed a law putting a freeze on fresh delimitation until 2026.

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

‘Rozgar Setu’ Scheme for skilled workers

Note4Students

From UPSC perspective, the following things are important :

Prelims level: ‘Rozgar Setu’ Scheme

Mains level: Various employment measures

The Madhya Pradesh has announced the launch of the ‘Rozgar Setu’ Scheme to help secure employment for skilled workers who have returned.

State schemes are quite often seen in the news. They are very important from the prelims perspective:

Rytha Bandu (Telangana): Cash transfer scheme of Rs 5,000/acre, per season

KALIA (Krushak Assistance for Livelihood and Income Augmentation) Scheme (Odisha)

Mukhya Mantri Krishi Aashirwad Yojana (Jharkhand)

Krishak Bandhu Scheme (West Bengal)

‘Rozgar Setu’ Scheme

  • The ‘Rozgar Setu’ scheme to provide work to the maximum number of returned skilled workers.
  • After such workers requiring employment are identified, the government will contact factory and workshop owners and contractors overseeing infrastructure projects such as road and bridge construction.
  • This would fulfil the manpower requirement of industries as well as provide employment to workers during the COVID-19 pandemic.

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

Expansion of the Amery Ice Shelf

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Ice Shelves, Amery Ice Shelf

Mains level: Impact of climate changes

 

There would be a 24% increase in the expansion of the Amery Ice Shelf (AIS) boundaries in Antarctica by 2021 and another 24 per cent by 2026 from its 2016 positions, the National Centre for Polar and Ocean Research (NCPOR) in Goa has predicted.

Practice question for mains:

Q. Discuss the interrelation between Cryosphere and Climate change in context to the melting ice shelves in the Antarctic region.

Amery Ice Shelf (AIS)

  • The Amery Ice Shelf is a broad ice shelf in Antarctica at the head of Prydz Bay between the Lars Christensen Coast and Ingrid Christensen Coast.
  • It is part of Mac. Robertson Land.
  • The name “Cape Amery” was applied to a coastal angle mapped on February 11, 1931.
  • The AIS is one of the largest glacier drainage basins in the world, located on the east coast of Antarctica, at about 70ºS Latitude, 70ºE Longitude.
  • The AIS dynamics and mass balance help in understanding the changes in the global climate scenario.

Significance of the study

  • NCPOR observations revealed a critical cooling of the sea surface temperature, resulting in an advancement of the ice shelf by 88 per cent in the past 15 years.
  • These changes would contribute in a major way to climate variability.
  • The study clearly demonstrated the future dynamism of ocean heat fluctuation and Antarctic Amery ice shelf mass shifting-extent.

Back2Basics: Ice Shelves

  • The floating sheets of ice called ‘ice shelves’ play a multi-faceted role in maintaining the stability of a glacier. Ice shelves connect a glacier to the landmass.
  • The ice sheet mass balance, sea stratification, and bottom water formation are important parameters for the balancing of a glacier. Latent and sensible heat processes do play important roles here.
  • The insulation of ice shelves from atmospheric forcing is dependent on a temperature gradient that the ocean cavity beneath the ice shelves provides.
  • It is the pressure exerted by the ice shelves upon the ocean cavity that determines this temperature gradient.

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Defence Sector – DPP, Missions, Schemes, Security Forces, etc.

Missile Park ‘AGNEEPRASTHA’

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Missile Park ‘Agneeprastha’

Mains level: NA

Foundation Stone for a Missile Park “AGNEEPRASTHA” was recently laid at INS Kalinga, Vizag.

Caution: Agneeprastha is a missile park of the eastern naval command of the Indian Navy. It has nothing to do with the Agni missiles.

Missile Park ‘Agneeprastha’

  • ‘Agneeprastha’ aims to capture glimpses of Missile History of INS Kalinga since 1981 till date.
  • The Missile Park has been set up with a replica of missiles and Ground Support Equipment (GSE) that showcase the evolution of missiles handled by the unit.
  • The exhibits have been created from scrap / obsolete inventory which have been reconditioned in-house.
  • The main attraction is P-70 ‘Ametist’, an underwater launched anti-ship missile from the arsenal of the old ‘Chakra’ (Charlie-1 submarine) which was in service with IN during 1988-91.
  • It will also provide a one-stop arena for motivation and stimulation of inquisitive minds regarding the missiles and related technologies, from school children to naval personnel and their families.

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New Species of Plants and Animals Discovered

Species in news: Amaltas or Indian Laburnum

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Amaltas Tree

Mains level: NA

The Amaltas or Indian laburnum has begun blooming this summer.

Try this PYQ from CSP 2018:

Q. Why is a plant called Prosopis juliflora often mentioned in news?

(a) Its extract is widely used in cosmetics.

(b) It tends to reduce the biodiversity in the area in which it grows

(c) Its extract is used in the pesticides.

(d) None of the above

Amaltas Tree

  • The Amaltas (Cassia fistula linn), native to South-East Asia is one of the most widespread trees in India and South-East Asia, with their presence both in cities as well as in moist and dry forests.
  • It has drooping clusters of bright fragrant yellow flowers with five petals and characteristic cylindrical fruits.
  • The Amaltas is known by so many names — Indian Laburnum, Golden Shower, Purging Fistula, Pudding-pipe tree, Girmala, Rajbrikh, Alash, Kiar, Kirwara, Ali — showing us how common and loved it is.
  • It is both the national tree and the national flower of Thailand and is also the state flower of Kerala.

Features of Amaltas

  • This middle-sized deciduous tree is leafless only for a brief time, between March and May.
  • The new leaves are glossy, a trait that they lose on maturing, and are mostly bright green, though sometimes a rich copper too.
  • It flowers from April to June, partly alongside the emergence of new leaves, but it’s not uncommon to find the Amaltas in flower as late as September.
  • The bark is yellowish at first, slowly coarsens with age and turning dark grey.

Significance

  • The tree is mostly known to be ornamental and few know of its benefits as a medicinal plant, and one that’s loved by some mammals, bees, and butterflies.
  • The bark is used to make dye and the pulp in the fruit pod also serves as a strong purgative agent, which also helps animals that feed on it.
  • A medicinal preparation with the roots of the tree is used to cure leprosy and skin diseases and the leaves are used to get rid ulcers, in traditional medicine.

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Foreign Policy Watch: India-Nepal

For a reset in India-Nepal relations

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Treat of Sugauli in 1816

Mains level: Paper 2- Indiao-Nepal relations and territorial dispute.

Over the past few years, we have been  witness to the deteriorating India-Nepal relations. Reserves of goodwill which India had accumulated is fast depleting in Nepal. The latest issue over the map is a new addition to the decline in relations. This article stresses the need for political maturity to find the solution to the complex issue of the underlying problem.

Need for the fundamental reset in relations between Indian and Nepal

  • The immediate provocation for the contention is the long-standing territorial issue surrounding Kalapani.
  • It is a patch of land near the India-Nepal border, close to the Lipulekh Pass on the India-China border.
  • However, the underlying reasons are far more complex.
  • Yet, Nepali Prime Minister K.P. Sharma Oli’s exploitation of the matter, by raising the banner of Nepali nationalism and painting India as a hegemon, is part of a frequent pattern.
  • Which indicates that relations between the two countries need a fundamental reset.

Let’s look at the historical background of the India-Nepal border

  • India inherited the boundary with Nepal, established between Nepal and the East India Company in the Treaty of Sugauli in 1816.
  • Kali river constituted the boundary, and the territory to its east was Nepal.
  • The dispute relates to the origin of Kali.
  • Near Garbyang village in Dharchula Tehsil of the Pithoragarh district of Uttarakhand, there is a confluence of different streams coming from north-east from Kalapani and north-west from Limpiyadhura.
  • The early British survey maps identified the north-west stream, Kuti Yangti, from Limpiyadhura as the origin.
  • But after 1857 changed the alignment to Lipu Gad, and in 1879 to Pankha Gad, the north-east streams, thus defining the origin as just below Kalapani.
  • Nepal accepted the change and India inherited this boundary in 1947.

More past events dealing with the LIpulech pass

  • The Maoist revolution in China in 1949, followed by the takeover of Tibet, created deep misgivings in Nepal.
  • So, India was ‘invited’ by Nepal to set up 18 border posts along the Nepal-Tibet border.
  • The westernmost post was at Tinkar Pass, about 6 km further east of Lipulekh.
  • In 1953, India and China identified Lipulekh Pass for both pilgrims and border trade. After the 1962 war, pilgrimage through Lipulekh resumed in 1981, and border trade, in 1991.
  • In 1961, King Mahendra visited Beijing to sign the China-Nepal Boundary Treaty that defines the zero point in the west, just north of Tinkar Pass.
  • By 1969, India had withdrawn its border posts from Nepali territory.
  • The base camp for Lipulekh remained at Kalapani, less than 10 km west of Lipulekh.
  • In their respective maps, both countries showed Kalapani as the origin of Kali river and as part of their territory.
  • After 1979, the Indo-Tibetan Border Police has manned the Lipulekh Pass.

So, when was the issue of the origin of Kali river raised?

  • After the 1996 Treaty of Mahakali -Kali river is also called Mahakali/Sarada further downstream-the issue of the origin of Kali river was first raised in 1997.
  • The matter was referred to the Joint Technical Level Boundary Committee that had been set up in 1981 to re-identify and replace the old and damaged boundary pillars along the India-Nepal border.
  • The Committee clarified 98% of the boundary, leaving behind the unresolved issues of Kalapani and Susta when it was dissolved in 2008.
  • It was subsequently agreed that the matter would be discussed at the Foreign Secretary level.
  • Meanwhile, the project to convert the 80-km track from Ghatibagar to Lipulekh into a hardtop road began in 2009 without any objections from Nepal.

Objections raised by Nepal to the new map released by India

  • The Survey of India issued a new political map (eighth edition) on November 2, 2019, to reflect the change in the status of Jammu and Kashmir as two Union Territories.
  • Nepal registered a protest though the map in no way had changed the boundary between India and Nepal.
  • However, on November 8, the ninth edition was issued.
  • The delineation remained identical but the name Kali river had been deleted.
  • Predictably, this led to stronger protests, with Nepal invoking Foreign Secretary-level talks to resolve issues.

New map released by Nepal and issues with it

  • A new map of Nepal based on the older British survey reflecting Kali river originating from Limpiyadhura in the north-west of Garbyang was adopted by parliament and notified on May 20.
  • On May 22, a constitutional amendment proposal was tabled to include it in a relevant Schedule.
  • The new alignment adds 335 sq km to Nepali territory, territory that has never been reflected in a Nepali map for nearly 170 years.

Following issue explains why there is need for rewriting the fundamental of India-Nepal relations

1. Nepali nationalism is being equated to anti-Indianism

  • Prime Minister Narendra Modi has often spoken of the “neighbourhood first” policy.
  • But the relationship took a nosedive in 2015 when India first got blamed for interfering in the Constitution-drafting in Nepal.
  • And then for an “unofficial blockade” that generated widespread resentment against the country.
  • It reinforced the notion that Nepali nationalism and anti-Indianism were two sides of the same coin.

2. China factor

  • In Nepali thinking, the China card has provided them the leverage to practise their version of non-alignment.
  • In the past, China maintained a link with the Palace and its concerns were primarily related to keeping tabs on the Tibetan refugee community.
  • With the abolition of the monarchy, China has shifted attention to the political parties as also to institutions like the Army and Armed Police Force.
  • Also, today’s China is pursuing a more assertive foreign policy and considers Nepal an important element in its growing South Asian footprint.

3. India has ignored the changing political narrative for long

  • The reality is that India has ignored the changing political narrative in Nepal for far too long.
  • India remained content that its interests were safeguarded by quiet diplomacy even when Nepali leaders publicly adopted anti-Indian postures.
  • Long ignored by India, it has spawned distortions in Nepali history textbooks and led to long-term negative consequences.
  • For too long India has invoked a “special relationship”, based on shared culture, language and religion, to anchor its ties with Nepal.
  • Today, this term carries a negative connotation — that of a paternalistic India that is often insensitive and, worse still, a bully.
  • The 1950 Treaty of Peace and Friendship which was sought by the Nepali authorities in 1949  is viewed as a sign of an unequal relationship, and an Indian imposition.
  • The purpose of the treaty was to continue the special links Nepal had with British India and it  provides for an open border and right to work for Nepali nationals
  • Yet, Nepali authorities have studiously avoided taking it up bilaterally even though Nepali leaders thunder against it in their domestic rhetoric.

Consider the question, “Examine the issues that have been testing the old ties between India and Nepal.”

Conclusion

The urgent need today is to pause the rhetoric on territorial nationalism and lay the groundwork for a quiet dialogue where both sides need to display sensitivity as they explore the terms of a reset of the “special relationship”. A normal relationship where India can be a generous partner will be a better foundation for “neighbourhood first” in the 21st century.

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Foreign Policy Watch: India-Africa

Deepening India’s engagement with Africa amid pandemic

Note4Students

From UPSC perspective, the following things are important :

Prelims level: India-Africa Forum summit

Mains level: Paper 3- Scope to increase the ties between India and Africa amid covid pandemic.

Long thought to be the backwater of the world, Africa has been successful in shading its past image and emerge on the global stage as region hard to ignore. And countries across the world are vying to increase their engagement with the region. This article examines the scope for increasing the ties with the region amid the pandemic.

India’s association with African Union

  • Africa Day is observed every year on May 25 to commemorate the founding of the Organisation of African Unity, now known as the African Union.
  • India has been closely associated with it on account of its shared colonial past and rich contemporary ties.
  • The Manohar Parrikar Institute for Defence Studies and Analyses has hosted an Africa Day Round Table annually for the last four years in order to commemorate this epochal event.

Economy and pandemic

  • The World Bank in its April report, assessed that the COVID-19 outbreak has sparked off the Sub-Saharan Africa (SSA) region’s first recession in 25 years.
  • Growth is expected to plummet to between -2.1 and -5.1 per cent in 2020, from a modest 2.4 per cent in 2019.
  • With high rates of HIV, malaria, diabetes, hypertension and malnourishment prevalent, a large number of Africans were already faced with a health and economic crisis.
  • The steep decline in commodity prices has spelt disaster for the economies of Nigeria, Zambia and Angola.

Need for financial support

  • Precarious fiscal positions have ruled out any major governmental stimulus.
  • Public debt has mounted.
  • According to the World Bank, the SSA region paid $35.8 billion in total debt service in 2018.
  • Which is 2.1 per cent of regional gross domestic product (GDP).
  • Together, African countries have sought a $100 billion rescue package.
  • This rescue package includes a $44 billion waiver of interest payment by the world’s 20 largest economies.
  • The IMF’s debt service relief of $500 million is meant for 25 countries of which 19 are in Africa, but that is a drop in the bucket.
  • It is clear that without outside support, Africa will find it very difficult to meet the challenge.

Why the increased interest in engagement with Africa?

  • Africa’s rich natural resources, long-term economic potential, youthful demography and influence as a bloc of 54 countries in multi-lateral organisations is apparent.
  • Many have an eye for economic opportunities, including in energy, mining, infrastructure and connectivity. 
  • Japan hosted the 7th Tokyo International Conference for African Development (TICAD) in August 2019.
  • Russia hosted the first-ever Russia-Africa Summit last year.
  • Brazil, home to the largest population of people of African descent outside of Africa, has also sought to develop closer ties.
  • Cuba has sent medical teams to help Africa.

Chinese Bonhomie with the region

  • China’s engagement of Africa, as elsewhere, is huge but increasingly regarded as predatory and exploitative.
  • Its annual trade with Africa in 2019 stood at $208 billion, in addition to investments and loans worth $200 billion.
  • Traditionally, China’s participation in infrastructure projects has been astonishing.
  • Having famously built the 1,860 km Tanzania-Zambia railway line in 1975, and the Addis Ababa-Djibouti and Mombasa-Nairobi lines more recently, China is now eyeing to develop the vast East Africa Master Railway Plan.
  • It is also developing the Trans-Maghreb Highway, the Mambilla Hydropower Plant in Nigeria, the Walvis Bay Container Terminal in Windhoek and the Caculo Cabaca Hydropower project in Angola.
  • At the Forum for China-Africa Cooperation (COCAC) in 2018, China set aside $60 billion in developmental assistance.
  • And it was followed by a whopping $1 billion Belt and Road (BRI) Infrastructure Fund for Africa.
  • China has followed up with robust health sector diplomacy in the wake of the pandemic.
  • But its image has been tarnished by defective supplies of PPE gear and discriminatory behaviour against Africans in Guangzhou.
  • This also led to an embarrassing diplomatic row.

India’s relations with Africa

  • In the last few years, India’s relations with Africa saw a revival.
  • India-Africa trade reached $62 billion in 2018 compared to $39 billion during 2009-10.
  • After South Asia, Africa is the second-largest recipient of Indian overseas assistance with Lines of Credit (LOC) worth nearly $10 billion (42 per cent of the total) spread over 100 projects in 41 countries.
  • Ties were boosted at the India Africa Forum Summit (IAFS) in 2015.
  • 40 per cent of all training and capacity building slots under the ITEC programme have traditionally been reserved for Africa.
  • Approximately 6,000 Indian soldiers are deployed in UN peace-keeping missions in five conflict zones in Africa.
  • Bilateral cooperation includes solar energy development, information technology, cyber security, maritime security, disaster relief, counter-terrorism and military training.
  • India has also launched several initiatives to develop closer relations, including the first-ever India Africa Defence Ministers conclave in February this year on the margins of the Defence Expo 2020.
  • India provides about 50,000 scholarships to African students each year.
  • The huge Indian diaspora is a major asset.
  • India had planned to host the Fourth India Africa Forum Summit in September this year.
  • However, the COVID-19 pandemic may cause it to be delayed.

India’s support amid covid pandemic

  • India has already despatched medical assistance to 25 African countries.
  • PM Modi has had a telephonic talk with President Cyril Ramaphosa of South Africa who is the current chairperson of the African Union, and separately others such as the presidents of Uganda and Ethiopia.
  • India could consider structuring a series of virtual summits in zonal groups with African leaders across the continent over the next few months.
  • That could both provide a platform for a cooperative response to the pandemic and also serve as a precursor to the actual summit in the future.
  • The Ministry of External Affairs has already extended the e-ITEC course on “COVID-19 Pandemic: Prevention and Management Guidelines for Healthcare Professionals” to healthcare workers in Africa.
  • The Aarogya Setu App and the E-Gram Swaraj App for rural areas for mapping COVID-19 are technological achievements that could be shared with Africa.
  • Since the movement of African students to India for higher education has been disrupted, India may expand the e-VidyaBharti (tele education) project to establish an India-Africa Virtual University. Agriculture and food security can also be a fulcrum for deepening ties.
  • With the locust scourge devastating the Horn of Africa and the pandemic worsening the food crisis, India could ramp up its collaboration in this sector.
  • India could also create a new fund for Africa and adapt its grant-in-aid assistance to reflect the current priorities.
  • This could include support for new investment projects by Indian entrepreneurs especially in the pharmaceutical and healthcare sectors in Africa.

Time for Quad Plus to propose cooperation with African countries

  • Both India and Japan share a common interest in forging a partnership for Africa’s development.
  • It is time for the Quad Plus, in which the US, India, Japan and Australia have recently engaged other countries such as the ROK, Vietnam, New Zealand, Israel and Brazil, to exchange views and propose cooperation with select African countries abutting the Indian Ocean.
  • After all, the Indo-Pacific straddles the entire maritime space of the Indian Ocean.

Consider the 2015 question asked by the UPSC “Increasing interest of India in Africa has its pros and cons. Critically examine”

Conclusion

The pandemic is a colossal challenge but it may create fresh opportunities to bring India and Africa closer together.

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Foreign Policy Watch: India-China

India-China confrontation: Not a standalone event

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Hong Kong, Taiwan location in the map

Mains level: Paper 2- India-China relation and tension over border dispute

The recent India-China standoff in Ladakh points to a larger picture of the Chinese agenda of regional dominance. The US-China tension has proved to be the backdrop against which the Ladakh standoff is playing out. This article suggests that this standoff is not a standalone event. It could well be a trigger for domino effect.

What the intensification of tension between India-China suggests?

1) China is feeling threatened

  • An authoritarian regime whose legitimacy rests primarily on its economic performance is faced with a situation where growth is expected to plummet.
  • It is a sign that Beijing is increasingly feeling beleaguered.
  • In response, it has embarked on a strategy of brinkmanship with several goals in mind.
  • External adventurism, when cloaked in the garb of ultra-nationalism, can shore up a regime’s legitimacy at home.

2) It could be a move to divert the attention of the world

  • Simultaneously, it can act as a diversionary measure to escape international criticism for Beijing’s attempt to cover up the spread of the coronavirus.
  • Many countries hold China responsible for the huge cost in human lives and suffering as well as the unprecedented economic distress.
  • In the face of such criticism, the Chinese regime is increasingly using jingoistic jargon to build up domestic support.
  • President Xi Jinping’s recent speech to the PLA is an outstanding example of this strategy.
  • He exhorted the Chinese armed forces to “prepare for war” in order to “resolutely safeguard national sovereignty” and “the overall strategic stability of the country”.
  • This is a sign that the Communist Party of China (CPC) feels increasingly threatened both domestically and externally.

Let’s look at the deterioration of the US-China relations

  • China’s relations with the U.S. have been going downhill almost since the beginning of the Donald Trump presidency.
  • Washington has periodically imposed economic sanctions on China and Beijing has retaliated in kind.
  • Trade talks have faltered because of growing protectionist sentiments in the U.S. and Chinese inability to adequately respond to them.
  • The chipping away at Hong Kong’s autonomous status by Beijing and the suppression of the pro-democracy movement in Hong Kong has led to severe criticism by the U.S. administration and in the Congress.
  • Differences over the issue of Taiwan have added to tensions, with China viewing the U.S. as the primary impediment preventing Taiwan’s integration.
  • The Trump administration has significantly increased support to Taiwan with arms sales that have added to China’s concern.

U.S.-China rivalry in South-China Sea

  • Above all, the U.S.-China rivalry in the South China Sea acts as the potential flashpoint that may well lead to a shooting war.
  • So far, it has been careful that these moves do not trigger a serious confrontation with the U.S.
  • Washington has a strong interest in preventing China from asserting control over the South China Sea as maintaining free access to this waterway is important to it for economic reasons.
  • It also has defence treaty obligations to the Philippines, which has vigorously contested Chinese territorial claims.
  • Further, China’s control of the South China Sea would be a major step toward replacing the U.S. as the foremost power in the Indo-Pacific region.

India-China relation questions have been the leitmotif in the UPSC papers. Just the theme of the question changes. Consider 2017 question “China is using its economic relations and positive trade surplus as a tool to develop potential military power status in Asia. In light of this statement, discuss its impact on India as her neighbour.”

Conclusion

Increased Chinese adventurism could result in an escalation of U.S.-China confrontation in the South China Sea. If that happens, the India-China face-off in Ladakh could become part of a much larger “great game”, with the U.S. trying to preserve the status quo and China attempting to change it to further its objective of regional dominance at the U.S.’s expense. The current India-China crisis should, therefore, be seen in its proper context and not as an isolated event.

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