Capital Markets: Challenges and Developments

Why has SEBI accused Hindenburg of breaking Indian law?  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: SEBI Function and Power

Mains level: Challenges related to the Capital Market

Why in the news? 

Hindenburg Research received a SEBI show cause notice for short-selling Adani Enterprises Ltd stock before and after their report accusing Adani of fraud.

What is the Hindenburg Report on Adani?

  • On January 24, 2023, the New York-based Hindenburg Research accused the Adani Group of “brazen stock manipulation and accounting fraud scheme over the course of decades.”
  • The report led to a significant drop in the shares of Adani companies and the calling off of Adani Enterprises Ltd’s Rs 20,000-crore follow-on Public Offer (FPO). Adani Group denied all allegations, claiming the report was a “calculated attack on India.”

What is SEBI’s show cause notice about?

  • Hindenburg received a show-cause notice from SEBI on June 27, 2024.SEBI alleged that Hindenburg colluded with certain entities to use non-public information to short-sell Adani Enterprises Ltd (AEL) stock before and after the release of its report, making profits.
  • The notice named Hindenburg, its founder Nathan Anderson, investor Mark Kingdon, and related entities, accusing them of sharing the report draft and building short positions in AEL futures.

How has Hindenburg responded to the show cause notice?

  • Hindenburg dismissed the notice as an attempt to silence those exposing corruption. They stated their investment stance was legal and disclosed, and criticized SEBI for targeting them instead of investigating the Adani Group’s alleged malpractices.
  • Accusations: Hindenburg accused SEBI of pressuring brokers to close short positions in Adani stocks to protect the stock prices.

Where does Kotak come into this picture?

  • Involvement of Kotak: SEBI’s notice did not name Kotak Bank, which Hindenburg claims created the offshore fund structure used for shorting Adani stocks.
  • Response: Kotak Mahindra Bank stated that Hindenburg has never been a client and that their KYC procedures were followed with regard to clients, with investments made by Kingdon as a principal.

How much profit did Hindenburg earn by short selling Adani stocks?

  • Revenue: Hindenburg earned approximately $4.1 million in gross revenue through gains related to Adani shorts from its investor relationship.
  • Own Short Position: Hindenburg made about $31,000 from their short of Adani US bonds.After legal and research expenses, Hindenburg indicated they might only slightly come out ahead of break-even on their Adani short.

Way forward: 

  • Conduct Investigation: SEBI should initiate an independent, comprehensive investigation into the allegations against both Adani Group and Hindenburg Research. This investigation should be conducted by a neutral third party to ensure impartiality and transparency.
  • Policy Review: SEBI could review and possibly update its regulations on short-selling and market manipulation to prevent similar incidents in the future. This could include stricter disclosure requirements for short sellers and enhanced monitoring of market activities.

Mains PYQ: 

Q The product diversification of financial institutions and insurance companies, resulting in overlapping of products and services strengthens the case for the merger of the two regulatory agencies, namely SEBI and IRDA. Justify.(UPSC IAS/2013)

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Nuclear Diplomacy and Disarmament

What we know about North Korea’s new ballistic missile test  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Bordering countries of North Korea

Mains level: Geopolitical Implications on the Indo-Pacific Region

Why in the news?

North Korea has announced that it has successfully tested a new tactical ballistic missile designed to carry a “super-large warhead”.

About the Recent Hwasongpho-11 Da-4.5 Test

  • North Korea announced the successful test of a new tactical ballistic missile, Hwasongpho-11 Da-4.5, capable of carrying a “super-large warhead.”The test was conducted with a simulated heavy warhead to verify flight stability and accuracy.
  • The test violates UN prohibitions on North Korea testing ballistic projectiles and is part of their ongoing efforts to advance nuclear capabilities. North Korea’s military plans another launch of the same missile type in July to test the “explosion power” of the super-large warhead.

South Korea’s Reaction

  • Dismissal as Deception: South Korea’s Joint Chiefs of Staff spokesperson, Colonel Lee Sung-jun, dismissed the test as likely “deception,” questioning the success of the inland test-fire.
  • Artillery Drills: South Korea’s military conducted artillery drills near the Military Demarcation Line in response.
  • Military Pact Suspension: These drills resumed following North Korea’s launch of balloons carrying garbage into South Korea, which led to the suspension of a military pact with Pyongyang.
  • Concerns Over Russia Ties: South Korea is increasingly worried about North Korea’s warming relations with Russia, suspecting North Korea of supplying ballistic missiles and artillery shells to Russia, despite both countries denying these allegations.

Geopolitical Implications on the Indo-Pacific Region

  • Increased Tensions: North Korea’s missile tests exacerbate tensions in the Indo-Pacific region, raising security concerns among neighbouring countries and global powers.
  • Regional Arms Race: The tests could prompt an arms race, with countries like South Korea and Japan potentially enhancing their military capabilities in response.
  • US and Allies’ Response: The United States and its allies in the region may increase military presence and conduct joint exercises to counter North Korea’s missile advancements.
  • Impact on Diplomacy: The tests complicate diplomatic efforts to denuclearize the Korean Peninsula and might lead to further sanctions and isolation of North Korea.
  • China’s Role: China’s influence in the region and its relationship with North Korea could be pivotal in addressing the security challenges posed by these missile tests.

Way forward ( What can India do?)

  • Strengthen Regional Alliances and Diplomatic Engagements: India should enhance its collaboration with key regional players like Japan, South Korea, and ASEAN countries to ensure collective security and stability in the Indo-Pacific region.
  • Enhance National Defense Capabilities: India should focus on bolstering its own defense infrastructure and capabilities to prepare for any potential threats arising from the increased militarization in the region.

Mains PYQ: 

Q The new tri-nation partnership AUKUS is aimed at countering China’s ambitions in the Indo-Pacific region. Is it going to supersede the existing partnerships in the region? Discuss the strength and impact of AUKUS in the present scenario. (UPSC IAS/2021)

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Urban Floods

How urban expansion makes Delhi susceptible to flooding? 

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Reason behind the heavy rain

Mains level: Principal Reasons Behind Chronic Urban Flooding in Delhi

Why in the news?

Heavy rain brought Delhi and NCR to a standstill, causing severe water-logging, traffic snarls, power cuts, property damage, and 11 deaths from structural collapses and electrocution.

  • Climate change and rising temperatures have intensified the overflow of rivers and lakes, snowmelt, storm surges (such as hurricanes and cyclones), and abnormally heavy rains. This, coupled with locational vulnerabilities, has resulted in increased instances of urban flooding.

Principal Reasons Behind Chronic Urban Flooding in Delhi

  • Unchecked Urban Expansion: Rapid, ill-planned urban growth without considering natural topography and drainage patterns.
  • Inadequate Drainage Systems: Existing drainage systems are unable to handle high-intensity rainfall, leading to significant runoff.
  • Concrete Overdevelopment: Excessive construction on low-lying areas and flood plains, leaving little room for water absorption.
  • Destruction of Water Bodies: Reduction of water bodies that could manage floodwaters, with many converted into real estate.
  • Neglect of Water in Urban Planning: Lack of a comprehensive water masterplan that integrates water management into urban development.

Present Scenario of Rapid Urbanization in Delhi NCR

  • Fastest Urban Expansion: Delhi is one of the fastest-growing cities globally, with its geographic size almost doubling between 1991 and 2011.
  • Population Growth: Predicted to overtake Tokyo as the world’s most populous city by 2030, with an estimated population of 39 million.
  • Urban Sprawl: Expansion primarily on the peripheries, converting rural areas into urban zones, and rapid urbanization in NCR cities like Ghaziabad, Faridabad, Noida, and Gurugram.

Challenges and Limitations

  • Topographical Neglect: Building in low-lying areas and on flood plains, disrupting natural drainage and increasing flood risks.
  • Inadequate Infrastructure: Insufficient desilting of drains, inadequate stormwater management systems, and improper solid waste management.
  • Lack of a Water Masterplan: Absence of comprehensive planning for clean and wastewater flows, leading to issues like the flooding of new infrastructures like the Pragati Maidan Tunnel.
  • Reduction of green space and water bodies: Conversion of green spaces and water bodies into concrete developments, further aggravating flood situations.
  • Inconsistent Urban Planning: No systematic approach to integrating natural water flows and gradients into urban development plans.

Recommendations (Way Forward)

  • Integrated Urban Planning: Develop a water masterplan that prioritizes water management in urban development.
  • Protection of Water Bodies: Preserve and restore existing water bodies to manage floodwaters effectively.
  • Sustainable Development: Implement policies to prevent construction in low-lying and flood-prone areas.
  • Infrastructure Improvement: Enhance drainage systems, desilting processes, and solid waste management to reduce water logging.
  • Public Awareness: Increase awareness about the importance of sustainable urban planning and the risks of unchecked urbanization.
Case study: Copenhagen, Denmark has an excellent “Five Finger Plan” that integrates urban infrastructure, transport, and green spaces. The city emphasizes sustainability, public life, and sensitive development. Indian Government can consider this plane.

Mains PYQ: 

Q Account for the huge flooding of million cities in India including the smart ones like Hyderabad and Pune. Suggest lasting remedial measures. (UPSC IAS/2020)

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Foreign Policy Watch: India-France

France: India’s steady partner in green growth

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Bordering countries of France

Mains level: How France is India’s steadfast partner in achieving its sustainability goals?

Why in the news?

On July 14, 2023, in Paris, President Emmanuel Macron and Prime Minister Narendra Modi elevated the ‘Partnership for the Planet’ to one of the three central pillars of the Indo-French Horizon 2047 Roadmap.

Indo-French Horizon 2047 Roadmap are:

  • Strategic Partnership: Enhancing defense, security, and geopolitical ties.
  • Economic Partnership: Promoting trade, investments, and sustainable development.
  • Partnership for the Planet: Focusing on environmental sustainability and green technologies.

India- France Bilateral Ties   

  • Strategic Partnership: India and France established a strategic partnership in 1998, which covers cooperation in defense, civil nuclear energy, space, and security. This partnership is considered a cornerstone of their bilateral ties.
  • High-Level Exchanges: There have been frequent high-level exchanges between the leaders of both countries, including state visits and participation in each other’s national events like the Republic Day parade. This demonstrates the close political ties.
  • Defense Cooperation: Defense is a major pillar of the India-France partnership. The two countries conduct joint military exercises, collaborate on defense equipment manufacturing, and have an “intelligence and information exchange” mechanism.
  • Space Cooperation: India and France have robust space cooperation, including co-development and launch of satellites, research on new launch technologies, and connecting startups. They recently launched a Strategic Space Dialogue to guide their space partnership.
  • Convergence on Indo-Pacific: Both countries share concerns over China’s assertiveness in the Indo-Pacific region. They have agreed to intensify cooperation in the strategically important Southwest Indian Ocean and work with other like-minded countries to address regional security challenges.

How France is India’s steadfast partner to achieve its sustainability goals?

  • Financial Support: France, through the French Development Agency (AFD) and Proparco, has committed substantial financial resources to India. This includes over €4 billion since 2008 for nearly 100 projects, with a significant focus on climate change mitigation and adaptation.
  • Strategic Focus Areas: Cooperation spans key sectors like energy transition, sustainable urban development, biodiversity conservation, resilience of territories, and reduction of inequalities. These efforts contribute directly to India’s sustainable development agenda.
  • Project Implementation: AFD’s involvement in projects such as metro systems in Pune and Nagpur, forest conservation in Rajasthan, and urban water management across 20 cities demonstrates tangible contributions to India’s environmental and social sustainability.
  • Partnership in Innovation: Collaborative initiatives underpinning innovation, including the Indo-French Year of Innovation in 2026, aimed at fostering solutions that integrate social inclusion with environmental sustainability.
  • Indo-Pacific Engagement: Strengthening bilateral ties with an Indo-Pacific dimension, focusing on initiatives like the Indo-Pacific Parks Partnership and joint funds for scaling up green technologies, showcasing France’s commitment to regional sustainability efforts.

Private sector-led projects

  • Investment in Agriculture: Proparco’s €11.2 million investment in Sahyadri, supports farmer-led initiatives to reduce farm losses, pesticide and fertilizer use, and enhance yields and produce quality.
  • Healthcare Investments: Proparco’s €33 million equity investment in Quadria, aimed at improving access to affordable quality healthcare in underserved regions of India and Southeast Asia.
  • Innovation and Sustainability: Emphasis on innovative solutions blending social inclusion with sustainability, such as through the Indo-French Year of Innovation in 2026 and joint efforts to scale up green technologies in the Indo-Pacific region.

Way forward: 

  • Strengthen bilateral agreements to facilitate smoother cooperation and ensure compliance with international sustainability standards.
  • Foster deeper public-private partnerships to leverage expertise, funding, and innovation for sustainable development projects.
  • Promote continuous high-level dialogues and joint initiatives to address global challenges, enhance regional security, and drive economic growth and environmental sustainability.

Mains PYQ:

Q What were the events that led to the Suez Crisis in 1956? How did it deal a final blow to Britain’s self-image as a world power? (UPSC IAS/2014)

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Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

Digital jurisprudence in India, in an AI era  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: What is Generative AI?

Mains level: Persistent and Contentious Issues in Internet Governance

Why in the news?

Generative AI’s transformative potential challenges existing legal frameworks and judicial precedents, which are inadequate for effectively governing this rapidly-evolving technology designed for a pre-AI world.

What is Generative AI?

  • Generative AI refers to artificial intelligence models that can generate original content like text, images, videos, and audio in response to prompts or requests.
  • These models learn patterns from large datasets and use that knowledge to create new content that resembles the training data.

Persistent and Contentious Issues in Internet Governance

Safe Harbour and Liability Fixation:

  • The Shreya Singhal judgment upholds Section 79 of the IT Act, granting intermediaries ‘safe harbour’ protection against liability for hosted content, contingent upon meeting due diligence requirements.
  • Challenges arise in applying these provisions to GAI tools, with debates on whether they should be classified as intermediaries, conduits, or active creators.
  • The Delhi High Court’s ruling in the Christian Louboutin Sas vs Nakul Bajaj and Ors (2018) case limited safe harbour protection to “passive” intermediaries.
  • The classification of GAI tools complicates the assignment of liability, especially in cases of user reposts.

Generative AI and Legal Conflicts:

  • GAI outputs have led to legal conflicts, such as a lawsuit in the U.S. against OpenAI for defamation by ChatGPT.
  • Ambiguities in classifying GAI tools complicate legal decisions regarding liability.

What Does the Indian Copyright Act 1957 Say?

  • Section 16 specifies that copyright protection is granted only under the provisions of the Act, with reluctance globally to extend protection to AI-generated works.
  • Critical questions include whether existing copyright laws should be revised for AI, the need for co-authorship with humans, and the responsibility for copyright infringement by AI tools.
  • The 161st Parliamentary Standing Committee Report highlights the inadequacy of the Copyright Act to facilitate AI authorship and ownership.
  • Current Indian law allows copyright owners to take legal action against infringement, but liability for AI-generated content remains unclear.

Steps to Pursue (Way forward)

  • Learning by Doing: Implement a sandbox approach, granting temporary immunity from liability to GAI platforms for responsible development and data gathering to inform future regulations.
  • Data Rights and Responsibilities: Overhaul the data acquisition process for GAI training, ensuring legal compliance, proper licensing, and compensation for intellectual property used in training models. Potential solutions include revenue-sharing or licensing agreements with data owners.
  • Simplify the Licensing: Licensing data for GAI is complex due to the lack of a centralized licensing body for web data. The creation of centralized platforms, similar to stock photo websites, can simplify licensing, streamline access to data, and ensure data integrity against bias and discrimination.
  • Government and Judicial Approach to maximize the benefits of GAI: A comprehensive re-evaluation of existing digital jurisprudence is needed, requiring a holistic, government-wide approach and judicious interpretations by constitutional courts. The aim is to maximize the benefits of GAI while safeguarding individual rights and protecting against unwelcome harm.

Mains PYQ:

Q The emergence of the Fourth Industrial Revolution (Digital Revolution) hasinitiated e-Governance as an integral part of government”. Discuss. (UPSC IAS/2020)

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

On Improving Rural Mobile Connectivity 

Note4Students

From UPSC perspective, the following things are important :

Prelims level: What is a middle-mile network?

Mains level: What impedes rural connectivity?

Why in the news? 

On June 6, IEEE endorsed a wireless network structure aimed at providing economical broadband access in rural areas, formulated at IIT Bombay.

About the latest Telecom Subscription Data        

  • Urban Tele-density: Urban tele-density in India is 127%, indicating that on average, each urban user has more than one mobile connection.
  • Rural Tele-density: Rural tele-density is significantly lower at 58%, meaning only about one in two rural residents has a mobile connection.
  • Urban-Rural Digital Divide: The data highlights a stark contrast between urban and rural areas, with urban areas having much higher mobile connectivity compared to rural regions, reflecting a significant digital divide.

What are access and core networks?

  • Access Network (AN): The AN consists of base stations that provide wireless connectivity to mobile devices within a limited geographical area. It interfaces directly with mobile devices, facilitating communication and data transfer between devices and the wider network.
  • Core Network (CN): The CN comprises centralized network equipment that manages and directs data traffic between the access network, other networks (like the Internet), and service providers. It handles tasks such as routing, switching, and managing connectivity across the broader network infrastructure.

What impedes rural connectivity?

  • Affordability: Lower income levels in rural areas make mobile services relatively expensive, limiting access for many rural residents.
  • Cost of Infrastructure: Installing and maintaining network infrastructure like fibre optics in remote rural areas is costly and may not be economically viable for service providers.
  • Low Population Density: Rural areas often have sparse populations spread over large geographic areas, making it less profitable for network operators to invest in infrastructure deployment.
  • Geographical Barriers: Difficult terrains and remote locations further complicate the installation of base stations and backhaul infrastructure necessary for robust network coverage.
  • Urban Bias in Technology: Most advancements in cellular networks, such as 5G, prioritize high data rates and low latency suitable for urban environments, neglecting the unique challenges of rural areas.
  • Limited Research: There has been insufficient research focused on developing cost-effective solutions that can efficiently cover large rural areas with adequate connectivity.

What is the IEEE 2061-2024 standard? (Its working and architecture)   

  • IEEE 2061-2024 aims to establish a standardized wireless network architecture for affordable broadband access in rural areas.
  • It defines a heterogeneous Access Network (AN) comprising macro base stations (Macro-BS) and Wi-Fi base stations, integrated with a flexible Core Network (CN) bypass capability.

Architecture:

  • Heterogeneous AN: Includes Macro-BS covering large areas with potentially lower data rates, complemented by Wi-Fi base stations deployed within villages for high-speed connectivity.
  • CN Bypass: Allows direct Internet access from the AN, bypassing the centralized Core Network for certain communications. This enhances efficiency and reduces latency, catering to stationary users common in rural settings.
  • Middle-Mile Connectivity: Utilizes multi-hop wireless networks (e.g., satellites, long-range Wi-Fi) to extend connectivity over long distances where optical fibre deployment is impractical or costly.

What is a middle-mile network?

  • A middle-mile network refers to the infrastructure that connects core network hubs to local access points, spanning intermediate distances. It uses technologies like fibre optics, microwave links, or satellites to transport data between central and regional locations, facilitating efficient connectivity over longer distances without the need for direct local access networks.

Conclude: To bridge the urban-rural digital divide in telecom, measures should focus on affordability through subsidized services, incentivizing infrastructure investment in rural areas, promoting research on rural-specific technologies, and ensuring equitable access to advanced wireless standards like IEEE 2061-2024.

Mains PYQ: 

Q Has digital illiteracy, particularly in rural areas, coupled with a lack of Information and Communication Technology (ICT) accessibility hindered socio-economic development? Examine with justification. (UPSC IAS/2021)

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Global Geological And Climatic Events

What are hurricanes, their types?    

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Difference between a hurricane and a tropical storm

Mains level: What are hurricanes and how do they form?

Why in the news?

Due to Hurricane Beryl sweeping through the Windward Islands, the Indian Men’s cricket team, victorious in the T20 World Cup, finds itself stranded in Barbados.

What do we know about Hurricane Beryl?

  • Early Category 4 Storm: Hurricane Beryl is the earliest category 4 storm of the Atlantic hurricane season, sustaining winds of at least 130 miles per hour (209 kilometres per hour).
  • Location and Impact: It is currently affecting the Windward Islands in the southern part of the Lesser Antilles, including Barbados, Grenada, and Trinidad and Tobago.
  • Forecast: The National Hurricane Centre has issued warnings for life-threatening winds and storm surges in the affected islands, with the potential for violent winds and flash flooding.
  • Preparations: Local authorities in Barbados have suspended school classes and taken other precautions, such as shutting down the water supply, in anticipation of the hurricane’s impact.
  • Historical Context: Hurricane Beryl is noted as the strongest storm to impact the Windward Islands since Hurricane Ivan in September 2004.

What are hurricanes and how do they form?

  • Formation: Hurricanes form over warm ocean waters near the equator where warm, moist air rises from the ocean’s surface, creating low air pressure.
  • Fuel: They are fueled by the heat and moisture evaporating from the ocean, forming clouds and spinning due to the Earth’s rotation.
  • Eye Formation: As the storm system intensifies, an eye forms at its centre, with storms rotating counterclockwise north of the equator and clockwise south of it.
  • Impact of Warming World: Warmer sea surface temperatures due to climate change may lead to slower decay of hurricanes upon landfall, potentially increasing their severity.

Are hurricanes becoming more severe now?

  • Research Findings: Studies suggest that warmer sea surface temperatures contribute to the slower decay of hurricanes, potentially prolonging their destructive impacts inland.
  • Record-Breaking Seasons: The 2020 Atlantic Hurricane season has seen a record number of named storms, indicating a trend towards more frequent and intense hurricane activity.

What is the difference between a hurricane and a tropical storm?

  • No Fundamental Difference: Hurricanes, typhoons, and cyclones are all types of tropical cyclones, named differently based on their location:
  • Hurricanes: Form over the Atlantic Ocean and the eastern Pacific Ocean.
  • Typhoons: Form in the Northwest Pacific Ocean.
  • Cyclones: Form in the Bay of Bengal and the Arabian Sea.
  • Naming Conventions: The different names signify regional differences but refer to the same meteorological phenomenon of tropical cyclones.

Way forward: 

  • Implementation of Advanced Forecasting Technologies: Invest in state-of-the-art meteorological tools and satellite technology to enhance the accuracy and lead time of hurricane forecasts.
  • Community Preparedness Programs: Establish comprehensive community outreach programs to educate residents about hurricane risks, evacuation procedures, and emergency shelter locations.

Mains PYQ:

Q Discuss the meaning of colour-coded weather warnings for cyclone prone areas given by India Meteorological Department. (UPSC IAS/2014)

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Finance Commission – Issues related to devolution of resources

What is on the agenda for the 16th Finance Commission?  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Finance Commission

Mains level: Role of Finance Commission

Why in the news? 

The 16th Finance Commission, under Article 280, focuses on devolving funds. Amendments like 73rd and 74th mandate it to bolster state funds for panchayats and municipalities.

About 16th Finance Commission

  • The 16th Finance Commission of India was constituted on December 31, 2023, with Dr. Arvind Panagariya as its Chairman.
  • The President of India appointed the Commission in pursuance of Article 280(1) of the Constitution

How do other countries devolve funds to their local governments?

  • International Comparison: Countries like South Africa, Mexico, the Philippines, and Brazil allocate significantly higher percentages of their GDP (1.6% to 5.1%) to urban local bodies compared to India’s 0.5%.
  • Importance of Intergovernmental Transfers (IGTs): IGTs make up about 40% of Urban Local Bodies (ULBs) revenue in India but suffer from unpredictability, lack of earmarking for vulnerable groups, and horizontal equity.
  • Financial Health of ULBs: Despite efforts by multiple Finance Commissions, financial devolution to cities in India remains inadequate, affecting city productivity and quality of life.

Why is the Census significant?

  • Data Dependence: The absence of the 2021 Census data makes it challenging to accurately assess urban growth and demographic changes crucial for evidence-based fiscal devolution.
  • Urban Dynamics: India has approximately 4,000 statutory towns, an equal number of Census towns, and a large number of effectively urban villages, which need accurate enumeration for effective planning and resource allocation.
  • Migration Impact: The Census data is essential to capture the significant migration to Tier-2 and Tier-3 cities, impacting their infrastructure and service needs.

What about cities and the Taxation system?

  • Impact of GST: The introduction of GST has reduced ULBs’ tax revenue (excluding property tax) significantly, impacting their financial autonomy.
  • Low IGTs: Intergovernmental transfers from States to ULBs in India are minimal (around 0.5% of GDP), much lower than other developing nations, exacerbating fiscal challenges.
  • Constitutional Provisions: Despite the 74th constitutional amendment aimed at empowering ULBs, progress has been limited over three decades, hampering urban development.
  • Parallel Agencies: The growth of parallel agencies and schemes like MP/MLA Local Area Development Schemes distort the federal structure and weaken ULBs’ financial and operational autonomy.

Way forward: 

  • Enhanced Intergovernmental Transfers (IGTs): Increase IGTs from States to Urban Local Bodies (ULBs) to at least 2% of GDP, ensuring predictability and earmarking for vulnerable groups.
  • Reform in Urban Governance and Fiscal Autonomy: Strengthen constitutional provisions to empower ULBs further, reducing dependence on parallel agencies like MP/MLA Local Area Development Schemes.

Mains PYQ: 

Q How is the Finance Commission of India constituted? What do you know about the terms of reference of the recently constituted Finance Commission? Discuss. (UPSC IAS/2018)

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LGBT Rights – Transgender Bill, Sec. 377, etc.

At the end of Pride Month, assessing the LGBTQIA+ communities’ rights   

Note4Students

From UPSC perspective, the following things are important :

Mains level: Varying rights and status of LGBTQIA+ communities across the world

Why in the news? 

Every June, Pride Month is celebrated globally to honour the contributions of LGBTQIA+ community members and to promote love, diversity, and acceptance.

Varying rights and status of LGBTQIA+ communities across the world:

  • Legalization and Criminalization of Same-Sex Acts: The legal status of same-sex acts varies significantly while 37 countries have fully legalized same-sex marriage, 59 countries still penalize any expression of queerness, with severe punishments in some regions.
  • Marriage Rights: Same-sex marriage is legal in 37 countries, banned in 79 countries, and in some places, same-sex couples can only opt for civil unions, leaving their status partially recognized.
  • Employee Protections: Legal protections for queer employees are inconsistent. While 27 countries offer legal aid based on sexual orientation, 90 countries lack any legal protections for queer employees. India and three other countries provide legal aid based on gender identity, including transgender persons.
  • Adoption Rights: Adoption rights for same-sex couples also vary. In 39 countries, same-sex parents can adopt children, while 45 countries ban this practice. In 100 countries, single parents can adopt under certain conditions, similar to India’s laws.
  • Social and Legal Challenges: Despite legal advancements in some areas, LGBTQIA+ individuals globally continue to face significant social and legal challenges, including discrimination, harassment, and exclusion, with varying levels of legal aid and recognition depending on the country.

Indian Scenario

  • Decriminalization of Homosexuality: In 2018, the Supreme Court of India partially struck down Section 377 of the Indian Penal Code, decriminalizing homosexuality. Same-sex couples have the right to cohabitation but not to legal marriage or unions.
  • Discrimination and Harassment: Queer individuals in India still face significant discrimination, harassment, and exclusion.
  • Legal Protections for Transgender and Intersex Individuals: The Transgender Persons (Protection of Rights) Act, 2019, prohibits unfair treatment in employment, education, healthcare, public facilities, and residence. Legal recourse is available for discrimination based on gender identity but not sexual orientation.
  • Adoption Rights: Same-sex couples cannot be recognized as co-parents to an adopted child. Single prospective adoptive parents, regardless of marital status, are allowed to adopt under the Juvenile Justice (Care and Protection of Children) Act, 2015.

Way forward: 

  • Expand Legal Recognition: Countries should work towards fully recognizing same-sex marriages and providing comprehensive legal protections against discrimination based on sexual orientation and gender identity.
  • Education and Awareness: Implement nationwide educational programs to raise awareness about LGBTQIA+ issues, combat stereotypes, and promote understanding and acceptance. This can involve incorporating LGBTQIA+ history and rights into school curriculums and conducting public awareness campaigns.
  • Economic Opportunities: Ensure equal opportunities in the workplace by promoting diversity and inclusion policies, providing sensitivity training for employers, and supporting LGBTQIA+ entrepreneurs. Governments and organizations can offer grants, mentorship programs, and other resources to empower LGBTQIA+ individuals economically.

Mains PYQ: 

Q ‘Women’s movement in India has not addressed the issues of women of lower social strata.’ Substantiate your view. (UPSC 2018)

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RBI Notifications

What is Project Nexus that RBI has signed up for?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Project Nexus; Fast Payments Systems (FPSs);

Mains level: Significance of Fast Payments Systems (FPSs) via Project Nexus

Why in the news? 

The Reserve Bank of India (RBI) has become a part of Project Nexus, a global initiative aimed at facilitating instant cross-border retail payments by connecting domestic Fast Payments Systems (FPSs).

What is Project Nexus?

  • Project Nexus is conceptualized by the Innovation Hub of the Bank for International Settlements (BIS).
  • It is the first BIS Innovation Hub project in the payments area moving towards live implementation.
  • Aim: To enhance cross-border payments by connecting multiple domestic instant payment systems (IPS) globally.
  • The Reserve Bank of India (RBI) has joined Project Nexus, aiming to interlink India’s Unified Payments Interface (UPI) with the Fast Payments Systems (FPSs) of Malaysia, the Philippines, Singapore, and Thailand.
  • The platform is designed to be extended to more countries in the future.

About Fast Payments Systems (FPSs):

Fast payment systems (FPSs) are real-time payment systems that enable the immediate transfer of funds between accounts. Some key points about FPSs:

  • FPSs allow for the fast, secure, and low-cost processing of retail transactions, ensuring funds are immediately available to the recipient.
  • FPSs are becoming increasingly popular globally, with over 100 jurisdictions now having access to fast payment systems. They foster competition among payment service providers and serve as a gateway to additional financial services.
  • The design of FPSs is important, as they have public good characteristics. Factors that contribute to greater adoption of FPSs include central bank involvement, inclusion of non-bank providers, more use cases, and more cross-border connections.
  • The Payment and Settlement Systems Act, of 2007 regulates and supervises payment systems in India. It designates the Reserve Bank of India has the authority for that purpose and all related matters.

What are the benefits of the platform?

  • Standardization: Project Nexus standardizes the way IPS connect to each other, simplifying the process.
  • Single Connection: Payment system operators can connect to the Nexus platform once, allowing them to reach all other countries on the network without building custom connections for each.
  • Instant Payments: Enables cross-border payments from sender to recipient within 60 seconds in most cases.
  • Cost Efficiency: Provides near-zero cost for sending and receiving payments.
  • Growth Acceleration: Significantly accelerates the growth of instant cross-border payments by leveraging existing instant payment systems.

Way forward: 

  • Expand Membership: Actively encourage more countries to join Project Nexus, thereby increasing the global reach and impact of the platform. (Indonesia is joining in the near future)
  • Enhance Technological Infrastructure: Invest in robust and scalable technological infrastructure to support seamless integration and interoperability among different FPSs.

Mains PYQ:

Q What is Cryptocurrency? How does it affect global society? Has it been affecting Indian society also? (UPSC IAS/2021)

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Disasters and Disaster Management – Sendai Framework, Floods, Cyclones, etc.

On Tamil Nadu’s financial distress   

Note4Students

From UPSC perspective, the following things are important :

Mains level: Funds released by the Centre for restoration work after natural disasters in the State

Why in the news?

At a June 22 meeting for Union Budget 2024-25, Tamil Nadu’s Finance Minister Thangam Thennarasu requested ₹63,246 crore for Chennai Metro Rail Phase-2, ₹3,000 crore for disaster restoration, and increased unit costs for centrally sponsored schemes.

How are the funds for phase two of the Chennai Metro Rail distributed?

  • Funding Agencies and International Support: Chennai Metro Rail Phase-2 is financed by multiple international agencies, including the Japan International Cooperation Agency (JICA), Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), and New Development Bank (NDB).
  • State Government Contributions: Up to March 31, 2024, the Tamil Nadu government sanctioned ₹5,400 crore as share capital for the Chennai Metro Rail Limited (CMRL) and ₹12,013.89 crore as subordinate debt, bearing the entire expenditure due to delays in approval from the Union Cabinet Committee on Economic Affairs (CCEA).

Is the Centre stalling the funds for the metro project?

Approval Status:

  • Public Investment Board: The Chennai Metro Rail Project’s Phase-2 was approved by the Public Investment Board (PIB) as a Central sector project under the equity sharing model in August 2021.
  • Union Cabinet Committee on Economic Affairs: The project has been awaiting approval from the Union Cabinet Committee on Economic Affairs (CCEA) since then.

State Government Actions:

  • Foundation Stone: Despite the pending approval, the foundation stone for the phase was laid by Union Home Minister Amit Shah in November 2020 when the AIADMK was in power.
  • Ongoing Expenditure: The Tamil Nadu government continues to fund the project independently, stressing its finances and urging the Centre to sanction the project under the 50:50 equity sharing model as was done for Phase 1.

What about funds released by the Centre for restoration work after natural disasters in the State?

  • Initial Request by Tamil Nadu: Tamil Nadu submitted detailed memoranda to the Union government, seeking approximately ₹37,906 crore for restoration works following two natural disaster spells in 2023.
  • Initial Central Release: The Union government initially released a sum of ₹276 crore for immediate restoration efforts.
  • Additional Approvals: The Union Ministry of Home Affairs (MHA) later approved additional assistance of ₹285.54 crore and ₹397.13 crore for the two disaster spells.
  • Disbursed Amounts: From these approvals, a total of ₹115.49 crore and ₹160.61 crore were disbursed under the National Disaster Response Fund (NDRF).
  • State Disaster Response Fund (SDRF): The Union government’s order also mentioned ₹406.57 crore as the 50% available in the State Disaster Response Fund (SDRF) account of Tamil Nadu as of April 1, 2023.

Way forward: 

  • Metro Rail Project: The Union government should prioritize and expedite the approval process for significant infrastructure projects like the Chennai Metro Rail Phase-2. This can be achieved by setting stricter timelines for the Union Cabinet Committee on Economic Affairs (CCEA) to finalize decisions.
  • Natural Disaster Restoration: The Centre should reassess the current disaster relief funding mechanism to ensure timely and adequate financial support for states hit by natural disasters.

Mains PYQ:

Q Discuss the recent measures initiated in disaster management by the Government of India departing from the earlier reactive approach. (UPSC IAS/2020)

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Judicial Reforms

New criminal laws in effect; amendments soon

Note4Students

From UPSC perspective, the following things are important :

Mains level: Provisions of the Bharatiya Nagrik Suraksha Sanhita (BNSS) that replaces the Code of Criminal Procedure (Cr.PC.)

bns

Why in the news? 

Despite objections from the Opposition-ruled States, three new criminal laws took effect nationwide. Union officials emphasized States’ autonomy to amend certain provisions of the Bharatiya Nagrik Suraksha Sanhita (BNSS)

New Laws Introduced:

  • Bharatiya Nagrik Suraksha Sanhita (BNSS) replaces the Code of Criminal Procedure (CrPC).
  • Bharatiya Nyaya Sanhita (BNS) replaces the Indian Penal Code, 1860.
  • Bharatiya Sakshya (BS) replaces the Indian Evidence Act, 1872.

Procedural and Evidence Reforms:

  • Cognisable Offences: From July 1, cognisable offences will be registered under Section 173 of BNSS instead of Section 154 of CrPC.
  • Audio-Video Recording: Mandatory audio-video recording of search and seizure operations and compulsory forensic examinations for offences with punishments of seven years or more, with electronic submission of evidence to the court.

Some provisions of the Bharatiya Nagrik Suraksha Sanhita (BNSS) that replace the Code of Criminal Procedure (Cr.PC.)

  • Procedure for Arrest and Custody: BNSS prescribes new procedures and conditions for arrest, including bail provisions and custody arrangements.
  • Evidence Handling: Mandatory audio-video recording of search and seizure operations in all criminal cases, ensuring transparency and accountability. Compulsory forensic examinations in cases where the offence attracts a punishment of seven years or more.
  • Electronic Submission: All recordings and forensic evidence must be submitted electronically to the court without delay, enhancing efficiency and reducing paperwork.

About handholding and electronic evidence

  • Training and Support: The Union government has provided comprehensive training and hand-holding for all States to facilitate the transition to the new criminal justice system under BNSS, BNS, and BS.
  • Crime and Criminal Tracking Network Systems (CCTNS): Upgrades to CCTNS enable the filing of e-FIRs and zero FIRs, allowing for remote registration of complaints without the need to visit a police station. CCTNS software has been modified to support FIR registrations in languages other than English and Hindi, ensuring accessibility across linguistic barriers.
  • eSakshya Mobile Application: Under testing, the eSakshya app assists police in recording crime scenes, search operations, and gathering evidence. It facilitates the secure uploading of recorded data to a cloud-based platform hosted by the National Informatics Centre, ensuring data integrity and accessibility.
  • State-Level Preparations: States like Delhi have developed specific applications, such as e-pramaan, to aid in the recording of crime scenes and the generation of digital certificates under the new laws. Some states have distributed necessary equipment like tablets and mobile devices to police stations to ensure compliance with recording and evidence collection requirements.
  • Forensic Capability Timeline: While the BNSS mandates forensic examinations for offences punishable by over seven years imprisonment, states have been given until June 2029 to enhance their forensic capabilities. This includes training police officials in proper evidence collection methods and the use of available resources until full upgrades are completed.

Way Forward: 

  • Continued Collaboration and Feedback Mechanism: Establish a structured feedback mechanism between the Union government and States to address implementation challenges and refine the new criminal laws, ensuring effective collaboration.
  • Enhanced Public Awareness and Training: Conduct extensive public awareness campaigns and provide ongoing training sessions for law enforcement personnel on the use of new technologies and procedures introduced under BNSS, BNS, and BS.

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International Monetary Fund,World Bank,AIIB, ADB and India

IMF | Overlords of the developing world

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Bretton Woods Conference

Mains level: Functions of IMF and Recent Challenges Faced by Developing Countries

Why in the news?

Once again, mass protests in Kenya, where at least 30 people were fatally shot by police, highlight opposition to an IMF-supported finance Bill proposing essential goods tax hikes.

Bretton Woods Conference of 1944

  • The Bretton Woods Conference was held in 1944 in New Hampshire, USA. It established the International Monetary Fund (IMF) and the World Bank.
  • The IMF was designed to aid economic development and promote monetary cooperation and stability globally.
  • Criticism: It has been criticized for reflecting and perpetuating power dynamics favouring Western financial interests, with voting rights disproportionately allocated based on financial contributions rather than equal representation.

Functions of IMF and Recent Challenges Faced by Developing Countries

  • Functions: The IMF aims to provide financial assistance and policy advice to member countries facing balance of payments problems.

Challenges:

  • Austerity Measures: IMF loans often come with conditions such as austerity measures (like tax hikes and spending cuts) that can be unpopular and detrimental to social services and economic stability.
  • Dependency: Many developing countries face criticism for being overly dependent on IMF loans, which come with stringent conditions that may not always align with local priorities.
  • Public Backlash: There is often a public and political backlash against IMF policies perceived as imposing Western economic ideologies without adequate consideration for local contexts.

SAP (Structural Adjustment Programs) and Its Impacts

  • Definition: SAPs are economic policies imposed by the IMF and World Bank on developing countries in exchange for loans.

Impacts:

  • Economic Restructuring: SAPs typically involve privatization, deregulation, and liberalization policies aimed at restructuring national economies towards export-led growth.
  • Social Consequences: They often lead to job losses, reduced public spending on health and education, and increased poverty and inequality.
  • Criticism of SAPs: SAPs have been criticized for exacerbating social inequalities and benefiting Western financial interests over local populations.

Way forward: 

  • Policy Transparency: The IMF could enhance transparency in its loan conditions and negotiations, ensuring that the terms and impacts of loans are clearly communicated to the public and local stakeholders.
  • Local Consultation: Before implementing major policy changes or austerity measures, the IMF could mandate extensive consultation with local governments, civil society organizations, and affected communities to ensure that proposed measures align with local economic priorities and social needs.

Mains PYQ: 

Q The World Bank and the IMF, collectively known as the Bretton Woods Institutions, are the two inter-governmental pillars supporting the structure of the world’s economic and financial order. Superficially, the World Bank and the IMF exhibit many common characteristics, yet their role, functions and mandates are distinctly different. Elucidate. (UPSC IAS/2013)

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Zika Virus Outbreak

India lacks diagnostic tests for emerging infectious diseases

Note4Students

From UPSC perspective, the following things are important :

Prelims level: About Zika Virus

Mains level: India’s Lack of Significant Zika Surveillance and Other Diseases

Why in the news?

The detection of a Zika virus infection in Pune has once again raised concerns regarding India’s readiness to diagnose emerging infectious diseases.

Recent Outbreaks in Various Regions of India

  • Zika Virus: Recent cases of Zika virus in Pune and previous outbreaks in Kerala and Uttar Pradesh highlight sporadic but concerning outbreaks across India.
  • Avian Influenza: Ongoing outbreaks affecting poultry, with occasional human cases reported, indicating challenges in surveillance and testing.
  • Nipah Virus: Multiple outbreaks in Kerala and sporadic cases in West Bengal underscore the recurrent nature of Nipah virus outbreaks in India.

India’s Lack of Significant Zika Surveillance and Other Diseases

  • Limited Diagnostic Capabilities: India faces challenges with the absence of approved diagnostic tests for the Zika virus, relying on clinical symptoms and selective testing, which may lead to underreporting.
  • Surveillance Gaps: There is a notable gap in systematic surveillance systems specifically tailored for Zika and other emerging infectious diseases, hampering early detection and containment efforts.
  • Infrastructure Deficiencies: The country’s diagnostic infrastructure outside major institutes is inadequate, affecting the timely identification and response to outbreaks of diseases like Zika, Nipah, and avian influenza.
  • Dependency on Apex Institutes: Diagnostic facilities are largely concentrated in apex national institutes, limiting accessibility and delaying the implementation of crucial public health measures during outbreaks.

Impacts of Unavailability of Infrastructure

  • Delayed Response: Lack of accessible diagnostics delays the identification and isolation of cases, contact tracing, and implementation of containment measures during outbreaks.
  • Loss of Time: Delays in releasing genomic sequences and validating diagnostic tests impede the rapid development and deployment of effective diagnostics.

Way Forward (Role of ICMR)

  • Enhanced Surveillance: ICMR (Indian Council of Medical Research) should lead efforts to decentralize testing facilities, ensuring availability at district and sub-district levels.
  • Capacity Building: Develop accessible and affordable diagnostic tests for Zika, Nipah, and avian influenza, leveraging lessons from COVID-19 testing infrastructure expansion.
  • Genomic Surveillance: Establish a system for the rapid release of whole genome sequences into public repositories like GISAID to enhance understanding and response capabilities.
  • Collaboration: Foster collaboration with industry and research institutions to streamline diagnostic test approvals and improve preparedness for future outbreaks.

Mains PYQ: 

Q COVID-19 pandemic has caused unprecedented devastation worldwide. However, technological advancements are being availed readily to win over the crisis. Give an account of how technology was sought to aid the management of the pandemic. (UPSC IAS/2020)

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

Climate change forces Panama islanders to relocate

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Location of Gardi Sugdub

Mains level: How fast is the global sea level rising?

Why in the news? 

In early June, approximately 300 families were relocated from the island of Gardi Sugdub in Panama’s Guna Yala province due to concerns about rising sea levels.

What is happening in Gardi Sugdub?

  • Location and Community: Gardi Sugdub, home to about 1,300 members of the Guna community, is an island in Panama’s Guna Yala province.
  • Sea Level Rise: The Caribbean region, where Panama is situated, is experiencing sea level rise at an average rate of 3 to 4 millimetres per year. This rate is expected to accelerate to 1 centimetre per year or more by 2100.
  • Flooding: Annually, particularly in November and December, seawater floods houses and streets on Gardi Sugdub, despite efforts to fortify the island.
  • Relocation: The Panamanian government constructed 300 new houses on the mainland in a development called Nuevo Cartí to relocate affected families.

How are other island nations affected by sea level rise?

  • Small island developing states (SIDS) are particularly vulnerable due to their low elevation and reliance on marine resources. SIDS in the Caribbean, Pacific, Atlantic, Indian Ocean, and South China Sea face existential threats from rising sea levels.
  • Examples of Impact: Islands such as Tuvalu, the Marshall Islands, and Kiribati are experiencing significant land loss and threats to their culture and economies.
  • Consequences: Coastal erosion, salinization of freshwater resources, and increased vulnerability to extreme weather events due to rising sea levels, storm surges, and ‘king tides.’

How fast is the global sea level rising?

  • Since 1880, global sea levels have risen by approximately 21–24 centimeters. The rate of increase has accelerated in recent decades.
  • Causes: The primary drivers are global warming, thermal expansion of seawater, and the melting of land-based ice such as glaciers and ice sheets.
  • Due to the Global Temperature Increase: The global average temperature has increased by at least 1.1 degrees Celsius since 1880, contributing to rising sea levels.

Way forward: 

  • Strengthen Coastal and Environmental Defenses: Construct seawalls, breakwaters, and other barriers to protect against storm surges and coastal erosion. Restore and preserve natural coastal barriers such as mangroves, coral reefs, and wetlands to enhance natural protection.
  • Develop and Implement Climate Adaptation Strategies: Create comprehensive climate adaptation plans that include relocation strategies for vulnerable communities.

Mains PYQ: 

Q Explain the causes and effects of coastal erosion in India. What are the available coastal management techniques for combating the hazard? (UPSC IAS/2022)

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Air Pollution

Why Denmark has taxed cattle burps and farts?    

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Why Are Methane Emissions a Problem?

Mains level: Significance of tax

Why in the news?

Denmark will impose a tax on its livestock farmers for the greenhouse gases (GHGs) emitted by their cows, sheep, and pigs from 2030.

What is it?

Denmark plans to impose a tax on livestock farmers for greenhouse gases (GHGs) emitted by their cows, sheep, and pigs starting in 2030.

  • Tax Rates: Farmers would initially pay about $43 per metric ton of carbon dioxide equivalent produced by their livestock, increasing to around $108 by 2035.
  • Actual Cost: Due to a 60% income tax deduction, the actual cost per ton will start at 120 kroner ($17.3) and rise to 300 kroner ($43) by 2035.
  • Use of Tax Collection: The funds collected from the tax between 2030 and 2031 will be returned to the industry to support its green transition. The handling of proceeds will be revisited in 2032. The proposal includes the development of over 600,000 acres of new forest areas.

How Do Cows and Sheep Produce Methane?

  • Ruminants like cows, sheep, goats, and buffaloes have a specialized digestive system with four stomach compartments, including the rumen. In the rumen, partially digested food ferments, producing methane.
  • Methane is released primarily through burping and farting as the animals regurgitate and chew cud to complete the digestive process. Ruminant digestive systems are responsible for 27% of all methane emissions from human activity.

Why Are Methane Emissions a Problem?

  • Climate Impact: Methane is a potent greenhouse gas, responsible for 30% of warming since preindustrial times, second only to carbon dioxide. Over a 20-year period, methane is 80 times more potent at warming than carbon dioxide.
  • Ground-Level Ozone: Methane is the primary contributor to ground-level ozone formation, a highly irritating gas just above the Earth’s surface, contributing to 1 million premature deaths annually.
  • Rising Levels: Atmospheric methane levels have dramatically increased in recent years, with the NOAA reporting a record 17 parts per billion increase in 2021, surpassing the previous record set in 2020.

Way forward: 

  • Dietary Adjustments: Introduce feed additives, such as seaweed or other natural supplements, that can reduce methane emissions during digestion in ruminants. This approach can significantly lower methane production without negatively impacting livestock health or productivity.
  • Improved Manure Management: Utilize advanced manure management practices, such as anaerobic digestion, to capture and convert methane emissions from decomposing animal waste into biogas. This not only reduces methane emissions but also provides a renewable energy source.

Mains PYQ: 

Q Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (UPSC IAS/2021)

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Foreign Policy Watch: India-China

China’s ‘Five Principles’ of Foreign Policy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Panchsheel policy

Why in the News? 

China is set to commemorate the 70th anniversary of the Five Principles of Peaceful Coexistence, a foreign policy concept initially outlined in a 1954 agreement with India, with special events scheduled for Friday, June 28th.

How it started?

  • Historical Context: India attained independence from British rule in 1947, and the People’s Republic of China was established in 1949 after a civil war victory by the Chinese communists. Nehru aimed to establish good relations with China based on trust and mutual respect, a sentiment reciprocated by China initially.
  • Origins and Proposal: The Five Principles of Peaceful Coexistence, known as Panchsheel in India, were proposed by Chinese Premier Zhou Enlai during bilateral talks with India over Tibet in 1954. This initiative was favored by Indian Prime Minister Jawaharlal Nehru.
  • Panchsheel Agreement: The agreement, formally titled “The Agreement on Trade and Intercourse with Tibet Region,” was signed on April 29, 1954. It was intended to enhance trade and cooperation, establishing trade centers and pilgrimage routes while recognizing Tibet as part of China.
  • Principles: The five guiding principles laid out in the agreement were mutual respect for territorial integrity and sovereignty, mutual non-aggression, mutual non-interference, equality and mutual benefit, and peaceful coexistence.
  • Bandung Conference: The Five Principles featured prominently in the 1955 Bandung Conference in Indonesia, which included 29 Asian and African countries. The principles were co-opted into a 10-point declaration and later became central to the Non-Aligned Movement (NAM).

Present Scenario:

  • After the India-China War of 1962: The principles of Panchsheel were severely undermined by the Sino-Indian War in 1962, leading to criticism of Nehru for misjudging Chinese intentions.
  • China’s Foreign Policy Shift: Over the past three decades, especially under President Xi Jinping, China has adopted a more aggressive foreign policy. This includes territorial claims in the South China Sea and hostile situations with neighbouring countries.
  • China’s Relations with the U.S: China’s relationship with the United States has been marked by hostility, characterized by trade and diplomatic challenges to American dominance globally.
  • India-China Relations Today: Since 2020, Indian and Chinese forces have been in a standoff along the Line of Actual Control (LAC) in Ladakh, with repeated but unsuccessful attempts to resolve the conflict.
  • Commemoration of 5 Principles by China: Despite the current strained relations, China commemorates the 70th anniversary of the Five Principles with a forward-looking theme, emphasizing building a community with a shared future for mankind.

Way forward: (What can India do?)

  • Engage in Diplomatic Dialogue: Despite historical tensions, maintaining open lines of diplomatic communication with China is crucial. India can continue efforts to engage in dialogue at multiple levels to manage and resolve bilateral disputes, including the ongoing situation along the Line of Actual Control (LAC) in Ladakh.
  • Strengthen Regional Alliances: Enhancing partnerships with other countries in the region and beyond can provide India with strategic leverage. Strengthening alliances through economic cooperation, military partnerships, and cultural exchanges can help counterbalance China’s influence and foster stability in the region.
  • Focus on Economic and Technological Development: Investing in economic growth and technological advancement can bolster India’s position on the global stage. Developing robust infrastructure, promoting innovation and entrepreneurship, and advancing sustainable development goals can strengthen India’s resilience and competitiveness in the face of geopolitical challenges.

Mains PYQ: 

Q China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. (UPSC IAS/2017)

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International Space Agencies – Missions and Discoveries

Why Indian-origin astronaut Sunita Williams is stuck in space?  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Starliner mission

Mains level: Cause of delay of Starliner Crew Flight Test mission

Why in the News?

The scheduled return of the Starliner spacecraft, which transported NASA astronauts Sunita Williams and Butch Wilmore to the International Space Station (ISS) earlier this month, has been delayed.

What is the Starliner mission?

  • Objective: The Starliner Crew Flight Test mission aimed to transport NASA astronauts Sunita Williams and Butch Wilmore to the International Space Station (ISS) and demonstrate the spacecraft’s capability to safely ferry crew to and from low-Earth orbit (LEO).
  • Craft Description: CST-100 Starliner, developed by Boeing in collaboration with NASA’s Commercial Crew Program, is designed to accommodate up to seven passengers or a mix of crew and cargo for LEO missions. It is reusable up to 10 times with a turnaround time of six months.
  • Significance: Marks Boeing’s contribution to NASA’s efforts since the retirement of the Space Shuttle Program in 2011, alongside SpaceX’s Dragon spacecraft, which first delivered cargo in 2012 and transported astronauts in 2020.

What has caused the delay?

  • Technical Issues: Multiple setbacks delayed the mission, including a faulty pressure valve on the Atlas V upper stage, engineering problems with other mechanisms, and issues with a spacecraft valve regulating oxidisers.
  • Specific Challenges: Post-launch, Starliner encountered five helium leaks, malfunctioning maneuvering thrusters, and a propellant valve failure, necessitating mid-mission fixes and assessments.

What would happen to the astronauts?

  • Current Status: Sunita Williams and Butch Wilmore remain aboard the ISS, where they are conducting research and experiments. The spacecraft can stay docked for up to 45 days, and the ISS has sufficient supplies for extended periods.
  • Contingency Plan: If safety concerns persist or the Starliner issues cannot be resolved in time, the astronauts may return to Earth aboard SpaceX’s Dragon spacecraft, currently also docked at the ISS.

Way forward ( what can NASA do?) 

  • Thorough Technical Review: NASA should conduct a comprehensive technical review of the Starliner spacecraft’s systems and components to identify the root causes of the multiple issues encountered during the mission.
  • Enhanced Mission Preparedness: NASA should prioritise enhancing mission preparedness protocols for commercial crew missions, including stricter pre-launch checks, contingency planning for mid-mission anomalies, and robust communication and coordination between mission control and astronauts aboard the ISS. This proactive approach can mitigate risks and ensure smoother operations in future missions.

Mains PYQ: 

Q What is India’s plan to have its own space station and how will it benefit our space programme? (UPSC IAS/2019)

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What is the Justice Reddy Commission, against which KCR has moved Telangana High Court?

Note4Students

From UPSC perspective, the following things are important :

Mains level: What has the Commission done on the PPAs so far?

Why in the news? 

On June 27, the Telangana High Court postponed the hearing on a petition filed by Bharat Rashtra Samiti (BRS) president and former Telangana Chief Minister K Chandrashekar Rao. The petition sought to halt all future proceedings of the Justice (retired) L Narasimha Reddy Commission until Friday.

What is the Narasimha Reddy Commission?

  • Formation: Appointed by the Congress government of Chief Minister A Revanth Reddy in March 2024.
  • Purpose: To investigate Power Purchase Agreements (PPAs) made with Chhattisgarh in 2014-15 and construction of power projects at Yadadri and Bhadradri. Allegations of irregularities in the Kaleshwaram irrigation project.

What is Power Purchase Agreements (PPAs)? 

  • Power Purchase Agreements (PPAs) are long-term contracts between electricity producers (such as power plants) and purchasers (such as utilities, governments, or large industrial consumers).
  • These agreements stipulate the terms under which electricity is to be generated, delivered, and sold over a specified period.

What has the Commission done on the PPAs so far?

  • Notice Issued: On June 11, the Commission issued a notice to K Chandrashekar Rao (KCR) requesting a response by June 15 regarding the PPAs made during his tenure (2014-2023).
  • KCR’s Response: KCR accused the Commission of bias and political motivation, requesting Justice Reddy to recuse himself.
  • Legal Action: Anticipating a personal summons, KCR filed a petition in the Telangana High Court seeking a stay on all proceedings of the Commission.
  • Energy Minister Notice: G Jagdish Reddy, Energy Minister in KCR’s Cabinet, was also issued a notice to appear before the Commission to provide a statement regarding the PPAs.

Allegations Regarding the Power Plants

  • Irregularities in Construction: The Narasimha Reddy Commission is investigating allegations of irregularities in the construction of the Bhadradri Thermal Power Plant at Manuguru and the Yadadri Thermal Power Plant at Damaracherla.Both projects were executed by the Telangana State Power Generation Corporation (TG GENCO).
  • Specific Concerns: The focus is on potential discrepancies and irregularities during the construction process, which may involve issues related to project execution, costs, and adherence to regulatory norms.

Way forward: 

  • Fair and Transparent Investigation: The Narasimha Reddy Commission should ensure a fair and transparent investigation into the allegations concerning Power Purchase Agreements (PPAs) and the construction of power projects.
  • Collaboration and Accountability: Stakeholders, including former government officials and current authorities involved in the projects under scrutiny, should cooperate fully with the Commission.

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Parliament – Sessions, Procedures, Motions, Committees etc

What is the role of the Lok Sabha Leader of Opposition?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Leader of Opposition in Lok Sabha and Rajya Sabha

Mains level: Significance of the Leader of Opposition

Why in the news? 

For a decade, the Leader of Opposition in Lok Sabha remained vacant due to the absence of any party meeting the customary threshold of one-tenth of the House’s strength, now filled by Rae Bareli MP Rahul Gandhi.

Leader of Opposition in the past:

 

Who can serve as Leader of Opposition in Lok Sabha and Rajya Sabha?

  • Legal Definition: According to The Salary and Allowances of Leaders of Opposition in Parliament Act, 1977, the Leader of the Opposition is a member of the Lok Sabha or Rajya Sabha who leads the largest party in opposition to the government, recognised by the Speaker (Lok Sabha) or Chairman (Rajya Sabha).
  • Needed Strength: The leader must lead the party with the greatest numerical strength among the opposition parties in the respective House.
  • Recognition: The Speaker (Lok Sabha) or Chairman (Rajya Sabha) is mandated to recognize the leader of the largest opposition party as the Leader of the Opposition, irrespective of the party having a minimum threshold of 10% seats in the House.

Significance of the positions and its significant role in Indian Political Democracy

  • Voice of the Opposition: The Leader of the Opposition serves as the primary spokesperson for the opposition in the House, articulating their views, criticisms, and alternative policies to those of the government.
  • Role in Committees: The Leader of Opposition plays a crucial role in high-powered committees responsible for appointments to key posts like the Director of CBI, Central Vigilance Commissioner, and others. This ensures a bipartisan approach in crucial appointments.
  • Ceremonial Role: The Leader of Opposition enjoys ceremonial privileges such as sitting in the front row during important occasions like the President’s Address to Parliament, symbolizing their role as a significant political figure.
  • Constitutional Checks and Balances: By providing an institutionalized position for the opposition, the Leader of Opposition ensures checks and balances on the ruling party’s power, fostering democratic accountability and oversight.
  • Precedence and Protocol: In the order of precedence, the Leader of Opposition ranks alongside Union Cabinet Ministers and other senior officials, reflecting their role in the functioning of the parliamentary democracy.

Conclusion: The Leader of Opposition in Lok Sabha and Rajya Sabha, recognized per the 1977 Act, leads the largest opposition party, ensuring a vital role in governance oversight, committee appointments, and parliamentary protocol, crucial for democratic checks and balances.

Mains PYQ: 

Q The Indian Constitution has provisions for holding joint sessions of the two houses of the Parliament. Enumerate the occasions when this would normally happen and also the occasions when it cannot, with reasons thereof. (UPSC IAS/2017)

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