Kerala’s ambitious Vizhinjam port project for a transshipment container terminal is caught in protests and violence.
Vizhinjam Port Project
In 2015, the Adani Group signed a concession agreement with the Kerala government to build India’s first mega transshipment container terminal at Vizhinjam near Thiruvananthapuram.
The ₹7,525 crore project — an all-weather deep-sea port with a depth of 24 meters — can service large megamax-sized container ships.
This natural port has no littoral sedimentation, obviating the need for periodic dredging and lowers maintenance costs.
The port, which is well-connected to the hinterland, will handle 1 million twenty-foot equivalent units in Phase-I and another 6.2 million TEUs when completed.
Significance of the project for India?
Transshipment hub: The Vizhinjam Port holds the potential to attract a large share of container transshipment traffic that is now handled by Colombo, Singapore or Dubai.
Important shipping lane: It located just off the International Shipping Lane and close to the East-West Shipping Axis.
Cargo handling: A large share of India’s exports and imports that are now transshipped through these international ports can be handled at Vizhinjam.
Reducing logistic costs: It would mean a sharp reduction in shipping costs and lead time. This will go a long way in reducing overall logistics costs and making manufacturing competitive.
Employment generation: It will also create thousands of jobs – directly and otherwise.
Reasons for protests
Local fishermen fear displacement and loss of livelihood. They blame higher tides and increasing coastal erosion on the project.
Protests has some leftist leaning inherently opposing every development project.
A Latin Catholic Church has been at the forefront of the protests.
Many right-wing outfits have thrown their weight behind the project and want its quick completion.
They blame foreign funding for what they call ‘anti-development’ protests.
From UPSC perspective, the following things are important :
Prelims level: Shakti Policy
Mains level: Not Much
Ministry of Power has launched a scheme for procurement of aggregate power of 4500 MW for 5 years under SHAKTI Policy to help states that are facing power shortages and help generation plants to increase their capacities.
SHAKTI Policy
SHAKTI is an acronym for Scheme for Harnessing and Allocating Koyala Transparently in India.
It was launched in 2018 to provide coal to stressed power units which lack coal supply.
It seeks to provide coal linkages to power plants which lack fuel supply agreements (FSAs) through coal auctions.
Need for such policy
SHAKTI is a policy designated by the government for the allocation of coal among thermal power plants in a transparent and objective manner.
It aims to transfer the benefits of linkage coal to the end consumers.
The scheme is supposed to be beneficial not just for the infrastructure sector, but also for the public sector banks which have huge loans unpaid at the end of the power companies.
The companies, which did not have coal linkages before the introduction of the Shakti Scheme, would benefit when they would get domestic fuel supplies through auction at competitive rates.
The scheme also aims to reduce the dependence on imported coal and promote domestic industries.
With this policy, the government also aims to reduce dependence on imported coal.
Coal linkage scenario in India
Coal linkage to the power sector is governed by provisions of the New Coal Distribution Policy (NCDP), 2007.
Under the NCDP, a system of issuance of Letter of Assurance (LoA) was introduced.
The requests for Linkage/LoA are forwarded to the Ministry of Power for its recommendations.
The coal availability scenario has, now, emerged from scarcity to adequacy.
From UPSC perspective, the following things are important :
Prelims level: Exercise Yudh Abhyas
Mains level: Not Much
China expressed concern over the India-US joint military exercise Yudh Abhyas being held in Uttarakhand, about 100 km from the LAC.
Exercise Yudh Abhyas
Exercise Yudh Abhyas is the largest running joint military training and defence cooperation endeavour between India and the US.
The exercise aims at enhancing understanding, cooperation and interoperability between the two armies.
Interestingly, this is the only India-US service exercise continuing in bilateral format.
Why in news?
The disengagement of troops is still under process after several rounds of talks between India and China.
Since beginning in May 2020, Chinese and Indian forces faced off in clashes with rocks, batons, and clubs wrapped in barbed wire at multiple locations along the LAC.
Each country seeks the withdrawal of the other’s forces and a return to the pre-stand-off conditions, but neither China nor India agreed to the conditions.
From UPSC perspective, the following things are important :
Prelims level: In-Camera Proceedings
Mains level: Not Much
The Supreme Court has rejected a plea by a rape case accused for an in-camera hearing.
What are in-camera proceedings?
In-camera proceedings are private, unlike open court proceedings.
It is conducted as per the court’s discretion in sensitive matters to ensure protection and privacy of the parties involved.
The proceedings are usually held through video conferencing or in closed chambers, from which the public and press are excluded.
In an open court or open justice system, which is the usual course of proceedings, the press is allowed to report on the matter being heard.
In-camera trial in rape cases
Section 327 of the Code of Criminal Procedure (CrPC) has detailed the types of cases that should be recorded on camera, including inquiry into and trial in rape case.
The said section states that if the presiding judge or a magistrate thinks fit, she can order at any stage of the proceedings that the public generally, or any particular person, shall not remain present in the courtroom or the court building.
The said provision says that the inquiry into and trial be held in camera for various offences punishable under section 376 (rape) of the IPC.
The law also prescribes that in such cases, the trial be conducted as far as possible by a woman judge or a magistrate.
Other cases where in-camera proceedings are held
In-camera proceedings are usually conducted at family courts in cases of matrimonial disputes, including judicial separation, divorce proceedings, impotence, and more.
In-camera proceedings are also conducted during the deposition of witnesses of terrorist activities as per the court’s discretion, so as to protect them and maintain national security.
What about publishing of such a hearing?
Section 327 of the CrPC states that it shall not be lawful to publish any matter in relation to in-camera proceedings except with the previous permission of the court.
It adds that the ban on publishing of trial proceedings for offence of rape may be lifted subject to maintaining confidentiality of name and address of the parties.
From UPSC perspective, the following things are important :
Prelims level: Mauna Loa
Mains level: Not Much
Mauna Loa, the world’s largest active volcano has erupted after 38 years, spewing ash and debris, and covering the sky of Hawaii’s Big Island.
Where is Mauna Loa?
Mauna Loa is one of five volcanoes that together make up the Big Island of Hawaii (biggest being the Mauna Kea).
It is the southernmost island in the Hawaiian archipelago.
It’s not the tallest (that title goes to) but it’s the largest and makes up about half of the island’s land mass.
It sits immediately north of Kilauea volcano, which is currently erupting from its summit crater.
Do you know?
Any volcano that has erupted within the Holocene period (in the last 11,650 years) is considered to be “active” by scientists. “Dormant” volcanoes are those active volcanoes which are not in the process of erupting currently, but have the potential to do so in the future.
Why do volcanoes erupt?
The deeper one goes under the surface of the Earth towards its core, the hotter it gets.
The geothermal gradient, the amount that the Earth’s temperature increases with depth, indicates heat flowing from the Earth’s warm interior to its surface.
At a certain depth, the heat is such that it melts rocks and creates what geologists call ‘magma’.
Magma is lighter than solid rock and hence it rises, collecting in magma chambers.
Chambers that have the potential to cause volcanic eruptions are found at a relatively shallow depth, between six to ten km under the surface.
As magma builds up in these chambers, it forces its way up through cracks and fissures in Earth’s crust. This is what we call a volcanic eruption.
The magma that surfaces on the Earth’s crust is referred to as lava.
Why is the eruption of Mauna Loa so explosive?
Eruptions vary in intensity and explosiveness, depending on the composition of the magma.
In simple terms, runny magma makes for less explosive volcanic eruptions that typically are less dangerous.
Since the magma is runny, gasses are able to escape, leading to a steady but relatively gentle flow of lava out of the mouth of the volcano.
The eruption at Mauna Loa is of this kind. Since the lava flows out at a slow pace, people typically have enough time to move out of the way
. Geologists are also able to predict the flow of the lava depending on the incline and exact consistency it has.
How is vulcanism measured?
The Volcanic Explosivity Index (VEI) is a scale used to measure the explosivity of a volcano.
It has a range of 1 to 8 with a higher VEI indicating more explosivity.
While the VEI of the current eruption at Mauna Loa is not known yet, the previous eruption in 1984 was deemed to have a VEI of 0.
From UPSC perspective, the following things are important :
Prelims level: Saras 3
Mains level: Not Much
India’s SARAS radio telescope has helped scientists determine the properties of the earliest radio luminous galaxies formed 200 million years after the Big Bang, a period known as the Cosmic Dawn.
SARAS 3 Telescope
SARAS stands for Shaped Antenna measurement of the background Radio Spectrum 3 (SARAS) telescope.
It is an indigenously designed and built at Raman Research Institute and was deployed over Dandiganahalli Lake and Sharavati backwaters, located in Northern Karnataka, in early 2020.
What have the researchers found?
Researchers have been able to determine properties of radio luminous galaxies formed just 200 million years post the Big Bang, a period known as the Cosmic Dawn.
These are the masses of the first generation of galaxies that are bright in radio wavelengths.
This helps provide an insight into the properties of the earliest radio loud galaxies that are usually powered by supermassive black holes.
What is Cosmic Dawn?
The ignition of the first stars marks the end of the Dark Ages and the beginning of our “Cosmic Dawn,” some 100 million years after the Big Bang.
For the first time, our universe began shining with a light other than the afterglow of the Big Bang.
SARAS 3 had improved the understanding of astrophysics of Cosmic Dawn by telling astronomers that less than 3% of the gaseous matter within early galaxies was converted into stars.
It found that the earliest galaxies that were bright in radio emission were also strong in X-rays, which heated the cosmic gas in and around the early galaxies.
From UPSC perspective, the following things are important :
Prelims level: Bluebugging
Mains level: Cyber security challenges
Cybersecurity experts note that apps that let users connect smartphones or laptops to wireless earplugs can record conversations, and are vulnerable to hacks through a process called Bluebugging.
What is Bluebugging?
It is a form of hacking that lets attackers access a device through its discoverable Bluetooth connection.
Once a device or phone is blue-bugged, a hacker can listen to the calls, read and send messages and steal and modify contacts.
It started out as a threat for laptops with Bluetooth capability. Later hackers used the technique to target mobile phones and other devices.
Independent security researcher Martin Herfurt blogged about the threat of bluebugging as early as 2004.
He noted that the bug exploited a loophole in Bluetooth protocol, enabling it to download phone books and call lists from the attacked user’s phone.
How does bluebugging hack devices?
Bluebugging attacks work by exploiting Bluetooth-enabled devices.
The device’s Bluetooth must be in discoverable mode, which is the default setting on most devices.
The hacker then tries to pair with the device via Bluetooth. Once a connection is established, hackers can use brute force attacks to bypass authentication.
They can install malware in the compromised device to gain unauthorised access to it.
Bluebugging can happen whenever a Bluetooth enabled device is within a 10-metre radius of the hacker.
However, according to a blog by VPN service provider NordVPN, hackers can use booster antennas to widen the attack range.
Why is it a big threat?
Even the most secure smartphones like iPhones are vulnerable to such attacks.
Any app with access to Bluetooth can record users’ conversations with Siri and audio from the iOS keyboard dictation feature when using AirPods or Beats headsets, some app developers say.
Through Bluebugging, a hacker can gain unauthorised access to these apps and devices and control them as per their wish.
How can one prevent bluebugging?
Here are some of the ways to prevent bluebugging-
Turning off Bluetooth and disconnecting paired Bluetooth devices when not in use,
Updating the device’s system software to the latest version,
From UPSC perspective, the following things are important :
Prelims level: Wet and dry leasing
Mains level: Not Much
In efforts to boost international air traffic, the civil aviation ministry has allowed Indian airlines to take wide-body planes on wet lease for up to one year.
What is Wet Leasing?
Wet leasing means taking the plane along with the operating crew and engineers, while dry leasing refers to taking only the aircraft on rent.
The technical term for wet leasing is ACMI which stands for aircraft, crew, maintenance and insurance.
These are the aspects of the operation that the wet lease airline takes care of, while the airline client will still be responsible for paying for direct operating costs.
This includes catering and fuel as well as fees such as airport fees, ground handling charges and navigation fees.
Operations of an aircraft on wet lease are more difficult for the Directorate General of Civil Aviation (DGCA) to monitor, which is why it is allowed for shorter durations.
What are the new rules?
The rules had been relaxed, allowing the wet leasing for a year as opposed to the six months permitted so far.
Dry leasing was already allowed for up to 12 months, with the option to extend the contract for 12 another year.
Why has govt extended limit now?
The civil aviation ministry’s decision came on a request by the country’s largest airline, IndiGo.
It plans for inducting B777 aircraft on wet/damp lease basis during the current winter schedule.
The relaxation will be available to all Indian carriers and will be granted based on international destinations they wish to operate to.
With Covid-related restrictions lifting, international travel is lifting up, and the wet leasing will allow airlines to fly more routes and rounds.
Wide-body planes can accommodate more passengers, thereby boosting revenue.
Why airlines lease aircraft?
About half the planes used by airlines around the world are not owned but leased.
Airlines and aircraft operators prefer leasing planes in order to avoid massive lump sum payments that buying them would entail, and to quickly increase capacity, perhaps temporarily, on certain routes or sectors.
From UPSC perspective, the following things are important :
Prelims level: PR23
Mains level: Rice for global food security
Farmers in China are now growing a perennial variety of rice called PR 22 which does not need to be planted every year.
What is PR23?
Researchers at the Yunnan University have developed a variety of perennial rice named PR23 by cross-breeding regular annual rice Oryza sativa with a wild perennial variety from Africa.
Unlike regular rice which is planted every season, PR23 can yield eight consecutive harvests across four years (as these plants with stronger roots grow back vigorously after each harvest).
PR23 yields, reported at 8 tons per hectare, are comparable to regular irrigated rice.
But growing it is much cheaper since it requires less labour, seeds and chemical inputs.
Benefits of the variety
It can result in remarkable environmental benefits such as soils accumulating close to a ton of organic carbon (per hectare per year) along with increases in water available to plants.
It is were preferred by farmers since it saved 58% in labour and 49% in other input costs, over each regrowth cycle.
The researchers claim it can transform farming by improving livelihoods, enhancing soil quality and by inspiring research on other grains.
The invention could transform rice farming by making it climate-friendly, besides using less of labour and other inputs.
Why is the discovery of the new variety significant?
Rice feeds about half of the world, and its farming and consumption are primarily in Asia.
Most crops grown today were once perennial, but bred to be annual, short-duration, to make them more productive.
Perennial rice could be a transformational innovation if it proves to be economically sustainable.
Significance for India
India is the world’s second largest rice producer, after China, and the largest exporter with a 40% share in global trade.
It is grown during both summer and winter crop seasons.
Perennial rice can reduce the drudgery of annual trans-plantation, a back-breaking task, and generate savings on seeds and other inputs.
China’s early success has another lesson for India: to raise investments in public research and agricultural sciences.
This can help counter the impact of climate change on food security and rural incomes.
From UPSC perspective, the following things are important :
Prelims level: Sacred Grooves
Mains level: Not Much
This newscard is an excerpt from the original article published in the Sunday edition of TH.
What are Sacred Grooves?
Sacred groves of India are forest fragments of varying sizes, which are communally protected, and which usually have a significant religious connotation for the protecting community.
It usually consists of a dense cover of vegetation including climbers, herbs, shrubs and trees, with the presence of a village deity and is mostly situated near a perennial water source.
Sacred groves are considered to be symbols of the primitive practice of nature worship and support nature conservation to a great extent.
The introduction of the protected area category community reserves under the Wild Life (Protection) Amendment Act, 2002 has introduced legislation for providing government protection to community-held lands, which could include sacred groves.
Historical references
Indian sacred groves are often associated with temples, monasteries, shrines, pilgrimage sites, or with burial grounds.
Historically, sacred groves find their mentions in Hindu, Jain and Buddhist texts, from sacred tree groves in Hinduism to sacred deer parks in Buddhism for example.
Sacred groves may be loosely used to refer to natural habitat protected on religious grounds.
Other historical references to sacred groves can be obtained in Vrukshayurveda an ancient treatise, ancient classics such as Kalidasa’s Vikramuurvashiiya.
There has been a growing interest in creating green patches such as Nakshatravana
Regulation of activities in Sacred Grooves
Hunting and logging are usually strictly prohibited within these patches.
Other forms of forest usage like honey collection and deadwood collection are sometimes allowed on a sustainable basis.
NGOs work with local villagers to protect such groves.
Traditionally, and in some cases even today, members of the community take turns to protect the grove.
Threats to such grooves
Threats to the groves include urbanization, and over-exploitation of resources.
While many of the groves are looked upon as abode of Hindu deities, in the recent past a number of them have been partially cleared for construction of shrines and temples.
Total grooves in India
Around 14,000 sacred groves have been reported from all over India, which act as reservoirs of rare fauna, and more often rare flora, amid rural and even urban settings.
Experts believe that the total number of sacred groves could be as high as 100,000.
They are called by different names in different states:
Sarna in Bihar
Dev Van in Himachal Pradesh
Devarakadu in Karnataka
Kavu in Kerala
Dev in Madhya Pradesh
Devarahati or Devarai in Maharashtra
Lai Umang in Maharashtra
Law Kyntang or Asong Khosi in Meghalaya
Oran in Rajasthan
Kovil Kadu or Sarpa Kavu in Tamil Nadu
What lies ahead?
The groves have great research value in in situ conservation of rare, endangered and threatened plant species.
It is high time that public awareness is created about the importance of these sacred groves, developmental activities are banned and the felling of trees or removal of any other vegetation is completely stopped.
This is possible only by way of enacting a special law for the protection and management of sacred groves.
As the management practices and other rituals vary from state to state, the concerned state governments may promulgate such an act as suitable for the state.
The idea should be to protect certain rare, endangered and threatened plant species in the era of global warming and climate change.
From UPSC perspective, the following things are important :
Prelims level: Darjeeling Tea
Mains level: Not Much
Tea Board officials admitted that Indian tea had not been able to establish itself globally, and that one of its key brands, Darjeeling Tea, was under acute stress.
About Darjeeling Tea
Darjeeling Tea, called the ‘Champagne of Teas’, was the first Indian product to get the GI (Geographical Identification) tag in 2004 for its distinctive aroma and flavour.
About 87 gardens in Darjeeling which employ about 55,000 workers produce approximately 7 million kg of tea, most of which is exported.
Why is it under distress?
Garden owners are reeling under higher costs of production and other issues.
Inferior quality tea from Nepal is being imported, and then sold and re-exported as premium Darjeeling Tea.
Nepal shares similar climatic conditions and terrain, produces tea at a lower price because of less input costs, particularly labour, and fewer quality checks.
In 2017, the production of Darjeeling Tea hit a low of 3.21 million kg. Since a substantial market of Darjeeling Tea switched to cheaper varieties of tea, including the imported variety from Nepal.
Tea planters and industry experts admit that the tea industry in Darjeeling has not recovered from the damage it incurred in 2017.
Is climate change impacting production?
The decline in production is due to multiple factors, which include climate change, declining yields, and high absenteeism among workers.
Because of the hilly terrain of Darjeeling, there is no land left for expansion of tea gardens.
The tea bushes are older than other parts of the country.
Uprooting and planting them is both time and cost-intensive.
From UPSC perspective, the following things are important :
Prelims level: Shiveluch Volcano
Mains level: Not Much
The Shiveluch volcano on the Kamchatka Peninsula in the Russian Far East has increased its activity and is now in danger of erupting violently.
About Shiveluch
Shiveluch is one of the largest and most active volcanoes in Kamchatka, having erupted at least 60 times in the past 10,000 years.
Kamchatka is home to 29 active volcanoes, part of a vast belt of Earth known as the “Ring of Fire” which circles the Pacific Ocean and is prone to eruptions and frequent earthquakes.
It has two main parts: Old Shiveluch, which tops 3,283 metres (10,771 ft), and Young Shiveluch – a smaller, 2,800-metre peak protruding from its side.
Young Shiveluch lies within an ancient caldera – a large crater-like basin that likely formed when the older part underwent a catastrophic eruption at least 10,000 years ago.
It is this part that has become extremely active; the lava dome continues to grow and that stronger “fumarole activity” has been observed.
From UPSC perspective, the following things are important :
Prelims level: Sankaradeva
Mains level: Bhakti Movement
‘Gurujana’ a musical tribute to 15th–16th century Assamese polymath Srimanta Sankardeva was recently released by the PIB.
Srimanta Sankardeva (1449–1568)
Sankardeva was a 15th–16th century Assamese polymath; a saint-scholar, poet, playwright, dancer, actor, musician, artist social-religious reformer and a figure of importance.
He is widely credited with building on past cultural relics and devising-
New forms of music (Borgeet)
Theatrical performance (Ankia Naat, Bhaona),
Dance (Sattriya)
Literary language (Brajavali)
Literary works
He has left extensive literary trans-created scriptures (Bhagavat of Sankardev), poetry and theological works written in Sanskrit, Assamese and Brajavali.
Political influence
The Bhagavatic religious movement he started, Ekasarana Dharma and also called the Neo-Vaishnavite movement, influenced two medieval kingdoms – Koch and the Ahom kingdom.
His influence spread even to some kingdoms as the Matak Kingdom founded by Bharat Singha, and consolidated by Sarbananda Singha in the latter 18th century endorsed his teachings.
The assembly of devotees he initiated evolved over time into monastic centers called Sattras, which continue to be important socio-religious institutions in Assam and to a lesser extent in North Bengal even today.
From UPSC perspective, the following things are important :
Prelims level: Cess, Surcharge
Mains level: Not Much
Several States, including some governed by the Centre urged to rein in its reliance on raising revenues through cesses and surcharges which reduce their share in the divisible pool of taxes.
What are Cesses and Surcharges?
The Union government has the authority to collect money through a variety of levies referred to as a tax, fee, cess, and surcharge.
(A) Cess
Cess is charged on the tax amount and is levied for a specific purpose.
In India, cess is applicable to all the taxpayers, and it is calculated over, and above the base tax liability of the taxpayer, cess taxes initially go to the consolidated fund of India (CFI) that has to be used for the purpose for which it was collected.
Education Cess, Swachh Bharat Cess
(B) Surcharge
The surcharge is levied on the tax payable and not on the total income.
It directly goes to the CFI, and after that it can be used for any purpose, just like the normal tax.
Surcharge applies to the taxpayer whose income is more than Rs 50 lakh.
In simple terms, surcharge is a tax on tax that is not collected for any particular cause, and the union government may use the proceeds of surcharges for any purpose it sees as important.
The objective behind the surcharge is to put a high tax burden on people with high incomes.
Difference between the two
The rate of cess under income tax is fixed at 4%, whereas the rate of surcharges varies from 10%, 15%, 25% & 37% based on the taxpayers’ total income.
Cess is calculated on total tax and surcharge amount; surcharge is calculated on total tax amount only.
In a nutshell, while both are taxes, cess is collected from every taxpayer to meet a certain purpose, and the surcharge is an additional tax collected from the taxpayers who have higher slab income.
Key difference over which states dispute
Major difference is that each can be shared with the state government, the surcharge can be kept with CFI, and it can be utilised for other taxes.
However, cess should be utilised for a particular reason. This restricts the states expenditure.
Tamil Nadu noted that the share of cesses and surcharges had grown from 10.4% of gross tax revenue in 2011-12 to 26.7% in 2021-22.
This has deprived the States of their legitimate share of revenue collected by the Union Government.
From UPSC perspective, the following things are important :
Prelims level: Capital Gains Tax
Mains level: Not Much
The Finance Ministry is looking at rationalizing long-term capital gains tax structure by bringing parity between similar asset classes and revising the base year for computing indexation benefits.
What is Capital Gains Tax?
Capital gains tax is levied on the profits made on investments (Base Year: 2001).
It covers real estate, gold, stocks, mutual funds, and various other financial and non-financial assets.
Under the Income Tax Act, gains from sale of capital assets — both movable and immovable — are subject to ‘capital gains tax’.
Types of CGT
(A) STCG (Short-term capital asset)
An asset held for a period of 36 months or less is a short-term capital asset.
The criteria is 24 months for immovable properties such as land, building and house property from FY 2017-18.
For instance, if you sell house property after holding it for a period of 24 months, any income arising will be treated as a long-term capital gain, provided that property is sold after 31st March 2017.
The reduced period of the aforementioned 24 months is not applicable to movable property such as jewellery, debt-oriented mutual funds etc.
Some assets are considered short-term capital assets when these are held for 12 months or less. This rule is applicable if the date of transfer is after 10th July 2014 (irrespective of what the date of purchase is). These assets are:
Equity or preference shares in a company listed on a recognized stock exchange in India
Securities (like debentures, bonds, govt securities etc.) listed on a recognized stock exchange in India
Units of UTI, whether quoted or not
Units of equity oriented mutual fund, whether quoted or not
Zero coupon bonds, whether quoted or not
(B) LTCG (Long-term capital asset )
An asset held for more than 36 months is a long-term capital asset.
They will be classified as a long-term capital asset if held for more than 36 months as earlier.
Capital assets such as land, building and house property shall be considered as long-term capital asset if the owner holds it for a period of 24 months or more (from FY 2017-18).
Whereas, below-listed assets if held for a period of more than 12 months, shall be considered as long-term capital asset.
Equity or preference shares in a company listed on a recognized stock exchange in India
Securities (like debentures, bonds, govt securities etc.) listed on a recognized stock exchange in India
Units of UTI, whether quoted or not
Units of equity oriented mutual fund, whether quoted or not
Zero coupon bonds, whether quoted or not
Why is it so complicated?
Capital gains tax is complicated for a few primary reasons.
First, the rate changes from asset to asset. LTCG tax on stocks and equity mutual funds is 10% but on debt mutual funds is 20% with indexation.
Second, holding period changes from asset to asset. The holding period for LTCG tax is two years in real estate, one year for stocks, and three years for debt mutual funds and gold.
Third, exemptions available against it come with their own complex conditions. For instance, buying a house after selling one can get you an exemption, but the new house must be bought in two years or built in three years of the sale.
Stipulated reforms by Finance Ministry
Currently, shares held for more than one year attract a 10% tax on long-term capital gains.
Gains arising from sale of immovable property and unlisted shares held for more than 2 years and debt instruments and jewellery held for over 3 years attract 20% long-term capital gains tax.
Also, a change in base year for computing inflation-adjusted capital gains is being contemplated.
The index year for capital gains tax calculation is revised periodically to make it more relevant. The last revision took place in 2017 when the base year was updated to 2001.
Since the prices of assets increase over time, the indexation is used to arrive at the inflation-adjusted purchasing price of assets to compute long-term capital gains for the purpose of taxation.
From UPSC perspective, the following things are important :
Prelims level: Nuclear Enrichment
Mains level: Not Much
The Russian state-owned nuclear energy corporation Rosatom has offered a more advanced fuel option to India’s largest nuclear power station at Kudankulam, which will allow its reactors to run for an extended 2-year cycle without stopping to load fresh fuel.
What is the news?
Rosatom’s nuclear fuel division, TVEL Fuel Company, is the current supplier of TVS – 2 M fuel for the two VVER 1,000 MWe reactors generating power in the Kudankulam Nuclear Power Project (KKNPP).
This fuel has an 18-month fuel cycle, meaning that the reactor has to be stopped for fresh fuel loading every one-and-a-half years.
TVEL has now offered the more modern Advanced Technology Fuel (ATF), whose fuel cycle is a whopping 24 months.
Benefits of the move
This fuel will ensure more efficiency and additional power generation due to the prolonged operation of the reactor.
It will result in sizable savings of the foreign exchange need to buy fresh fuel assemblies from Russia.
What is the Nuclear Fuel Cycle?
The nuclear fuel cycle consists of front-end steps that prepare uranium for use in nuclear reactors and back-end steps to safely manage, prepare, and dispose of used—or spent—but still highly radioactive spent nuclear fuel.
Uranium is the most widely used fuel by nuclear power plants for nuclear fission.
Nuclear power plants use a certain type of uranium—U-235—as fuel because its atoms are easily split apart.
Although uranium is about 100 times more common than silver, U-235 is relatively rare at just over 0.7% of natural uranium.
Steps involved in fuel enrichment
Uranium concentrate is separated from uranium ore at uranium mills or from a slurry at in-situ leaching facilities.
It is then processed in conversion and enrichment facilities, which increases the level of U-235 to 3%–5% for commercial nuclear reactors, and made into reactor fuel pellets and fuel rods in reactor fuel fabrication plants.
Nuclear fuel is loaded into reactors and used until the fuel assemblies become highly radioactive and must be removed for temporary storage and eventual disposal.
Chemical processing of spent fuel material to recover any remaining product that could undergo fission again in a new fuel assembly is technically feasible.
Back2Basics: Uranium Enrichment
It is a process that is necessary to create aneffective nuclear fuel out of mined uranium.
It involves increasing the percentage of uranium-235 which undergoes fission with thermal neutrons.
Nuclear fuel is mined from naturally occurring uranium ore deposits and then isolated through chemical reactions and separation processes.
These chemical processes used to separate the uranium from the ore are not to be confused with the physical and chemical processes used to enrich the uranium.
Why is enrichment carried out?
Uranium found in nature consists largely of two isotopes, U-235 and U-238.
Natural uranium contains 0.7% of the U-235 isotope.
The remaining 99.3% is mostly the U-238 isotope which does not contribute directly to the fission process (though it does so indirectly by the formation of fissile isotopes of plutonium).
The production of energy in nuclear reactors is from the ‘fission’ or splitting of the U-235 atoms since it is the main fissile isotope of uranium.
Naturally occurring uranium does not have a high enough concentration of Uranium-235 at only about 0.72% with the remainder being Uranium-238.
From UPSC perspective, the following things are important :
Prelims level: RTI
Mains level: Online dispensation of RTI
The Supreme Court has launched an online portal that will help citizens file and access applications under the Right to Information (RTI) Act in matters related to the court
What is the online RTI portal?
The online RTI portal has been initiated to make it convenient for people to access information about the Supreme Court.
So far, RTI applications at the Supreme Court had to be filed only via post.
Various public interest litigation (PILs) had been filed before the Supreme Court seeking an online RTI portal for the Court.
The online portal is likely to streamline responses of the Supreme Court under the Right to Information Act.
How does the online portal work?
The online portal can be accessed at a dedicated url.
Essentially, the process of filing an RTI in the Supreme Court is the same as how one normally files the application.
This web portal can be used only by Indian citizens to file RTI applications, first appeals and to make payment for fees, and copying charges, under the Right to Information Act, 2005 (RTI Act).
An applicant must first register themselves in the web portal.
Fees prescribed
The applicant can pay the prescribed fee through internet banking, credit/debit card of Master/Visa or UPI.
The fee per RTI application is ₹10.
Any applicant who is Below Poverty Line (BPL) is exempted to pay the application fee under the RTI Rules, 2012.
Expected time for response
By law, RTIs must be replied to within 30 days.
In fact, in life and death cases, RTIs must be responded to within 48 hours.
Back2Basics: Right to Information
RTI is an act of the parliament which sets out the rules and procedures regarding citizens’ right to information.
It replaced the former Freedom of Information Act, 2002.
Under the provisions of RTI Act, any citizen of India may request information from a “public authority” (a body of Government or “instrumentality of State”) which is required to reply expeditiously or within 30.
In case of the matter involving a petitioner’s life and liberty, the information has to be provided within 48 hours.
The Act also requires every public authority to computerize their records for wide dissemination and to proactively publish certain categories of information so that the citizens need minimum recourse to request for information formally.
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Regulation of online gaming
A ministerial panel is likely to recommend a uniform 28 percent tax GST rate on Online Gaming, irrespective of whether it is a game of skill or chance.
Online gaming sector in India
In the past few years, India’s nascent online gaming industry witnessed an unprecedented rise, catapulting it to the top five mobile gaming markets in the world.
Registering a growth rate of 38%, online gaming is the next sunrise industry.
Currently, there are more than 400 gaming companies in India, and it is home to 420 million online gamers, second only to China, according to an analysis by KPMG.
Types of gaming
The types of online gaming include:
E-sports (well-organized electronic sports which include professional players) ex. Chess
Fantasy sports (choosing real-life sports players and winning points based on players’ performance) ex. MPL cricket
Skill-based (mental skill) ex. Archery
Gamble (based on random activity) ex. Playing Cards, Rummy
Why is the gaming industry booming in India?
Digital India boom in the gaming industry
Narrowing of the digital divide
IT boom
Other factors promoting the boom
Growing younger population
Higher disposable income
Inexpensive internet data
Introduction of new gaming genres, and
Increasing number of smartphone and tablet users
Prospects of online gaming
State List Subject: The state legislators are, vide Entry No. 34 of List II (State List) of the Seventh Schedule, given exclusive power to make laws relating to betting and gambling.
Distinction in laws: Most Indian states regulate gaming on the basis of a distinction in law between ‘games of skill’ and ‘games of chance’.
Classification on dominant element: As such, a ‘dominant element’ test is utilized to determine whether chance or skill is the dominating element in determining the result of the game.
Linked economic activity: Staking money or property on the outcome of a ‘game of chance’ is prohibited and subjects the guilty parties to criminal sanctions.
‘Game of Skill’ debate: Placing any stakes on the outcome of a ‘game of skill’ is not illegal per se and may be permissible. It is important to note that the Supreme Court recognized that no game is purely a ‘game of skill’ and almost all games have an element of chance.
Need for regulation
No comprehensive regulation: India currently has no comprehensive legislation with regards to the legality of online gaming or boundaries that specify applicable tax rates within the betting and gambling industry.
Ambiguity of the sector: The gaming sector is nascent and is still evolving, and many states are bringing about legislation seeking to bring about some order in the online gaming sector.
State list subject: Online gaming in India is allowed in most parts of the country. However, different states have their own legislation with regards to whether online gaming is permitted.
Economic advantage: Well-regulated online gaming has its own advantages, such as economic growth and employment benefits.
Issues with online gaming
Gaming addiction: Numerous people are developing an addiction to online gaming. This is destroying lives and devastating families.
Compulsive gaming: Gaming by children is affecting their performance in schools and impacting their social lives & relationships with family members. Ex. PUBG
Impact on psychological health: Online games like PUBG and the Blue Whale Challenge were banned after incidents of violence and suicide.
Threat to Data privacy: Inadvertent sharing of personal information can lead to cases of cheating, privacy violations, abuse, and bullying.
Betting and gambling: Online games based on the traditional ludo, arguably the most popular online game in India, have run into controversy, and allegations of betting and gambling.
Why hasn’t a comprehensive law yet materialized?
Earlier, states like Tamil Nadu, Telangana, Andhra Pradesh, and Karnataka also passed laws banning online games.
However, they were quashed by state High Courts on grounds that an outright ban was unfair to games of skill:
Violation of fundamental rights of trade and commerce, liberty and privacy, speech and expression;
Law being manifestly arbitrary and irrational insofar as it did not distinguish between two different categories of games, i.e. games of skill and chance;
Lack of legislative Competence of State legislatures to enact laws on online skill-based games.
Way forward
Censoring: Minors should be allowed to proceed only with the consent of their parents — OTP verification on Aadhaar could resolve this.
Awareness: Gaming companies should proactively educate users about potential risks and how to identify likely situations of cheating and abuse.
Regulating mechanism: A Gaming Authority in the central government should be created.
Accountability of the gaming company: It could be made responsible for the online gaming industry, monitoring its operations, preventing societal issues, suitably classifying games of skill or chance, overseeing consumer protection, and combatting illegality and crime.
All-encompassing legislation: the Centre should formulate an overarching regulatory framework for online games of skill. India must move beyond skill-versus-chance debates to keep up with the global gaming industry.
From UPSC perspective, the following things are important :
Prelims level: Nyingma school of buddhism
Mains level: Not Much
In a significant development in Tibetan Buddhist circles, the Nyingma sect has identified a boy from Spiti in Himachal Pradesh as the reincarnation of the late Taklung Setrung Rinpoche, a scholar known for his knowledge of Tibetan Tantric school.
About the Nyingma Sect
Nyingma (literally ‘old school’) is the oldest of the four major schools of Tibetan Buddhism.
It is founded on the first lineages and translations of Buddhist scriptures from Sanskrit into Tibetan in the eighth century, during the reign of King Trisong Detsen (r. 710–755).
Nyingma traditional histories consider their teachings to trace back to the first Buddha Samantabhadra (Güntu Sangpo) and Indian mahasiddhas such as Garab Dorjé, Śrī Siṃha and Jñānasūtra.
Traditional sources trace the origin of the Nyingma order in Tibet to figures associated with the initial introduction of Buddhism in the 8th century, such as Padmasambhava, Yeshe Tsogyal, Vimalamitra, Vairotsana, Buddhaguhya and Shantaraksita.
Who is a Rinpoche?
Rinpoche is an honorific term used in the Tibetan language.
It literally means “precious one”, and may refer to a person, place, or thing—like the words “gem” or “jewel”.
The word consists of rin (value), po (nominalizing suffix) and chen (big).
The word is used in the context of Tibetan Buddhism as a way of showing respect when addressing those recognized as reincarnated, older, respected or an accomplished Lamas or teachers of the Dharma.
It is also used as an honorific for abbots of Buddhist monasteries.
From UPSC perspective, the following things are important :
Prelims level: Guru Tegh Bahadur
Mains level: Not Much
November 24, is commemorated as the Shaheedi Divas of Guru Tegh Bahadur, the ninth guru of the Sikhs, who stood up against forcible conversions by the Mughals, and was executed on the orders of Aurangzeb in 1675.
Guru Tegh Bahadur (1621–1675)
Guru Tegh Bahadur was the ninth of ten Gurus of the Sikh religion. He was born at Amritsar in 1621 and was the youngest son of Guru Hargobind.
His term as Guru ran from 1665 to 1675. One hundred and fifteen of his hymns are in Guru Granth Sahib.
There are several accounts explaining the motive behind the assassination of Guru Tegh Bahadur on Aurangzeb’s orders.
He stood up for the rights of Kashmiri Pandits who approached him against religious persecution by Aurangzeb.
He was publicly executed in 1675 on the orders of Mughal emperor Aurangzeb in Delhi for himself refusing Mughal rulers and defying them.
Gurudwara Sis Ganj Sahib and Gurdwara Rakab Ganj Sahib in Delhi mark the places of execution and cremation of his body.
Impact of his martyrdom
The execution hardened the resolve of Sikhs against religious oppression and persecution.
His martyrdom helped all Sikh Panths consolidate to make the protection of human rights central to its Sikh identity.
Inspired by him, his nine-year-old son, Guru Gobind Singh Ji, eventually organized the Sikh group into a distinct, formal, symbol-patterned community that came to be known as Khalsa (Martial) identity.
In the words of Noel King of the University of California, “Guru Teg Bahadur’s martyrdom was the first-ever martyrdom for human rights in the world.
He is fondly remembered as ‘Hind di Chaadar’.
Try this PYQ:
Q.Consider the following Bhakti Saints:
Dadu Dayal
Guru Nanak
Tyagaraja
Who among the above was/were preaching when the Lodi dynasty fell and Babur took over?
