Prelims Only | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
Note4Students
From UPSC perspective, the following things are important :
Central idea: The Reserve Bank of India (RBI) is being asked to monitor card spend under the Liberalised Remittance Scheme (LRS).
Liberalised Remittance Scheme (LRS)
LRS is a facility provided by the Reserve Bank of India (RBI) to resident individuals to remit funds abroad for permitted current or capital account transactions or a combination of both.
The scheme was introduced in 2004 and has been periodically reviewed and revised by the RBI.
Under the scheme, resident individuals can remit up to a certain amount in a financial year for permissible transactions including education, travel, medical treatment, gifts, and investments in equity and debt securities, among others.
The limit for LRS is currently set at USD 250,000 per financial year.
Eligibility for LRS
LRS is open to everyone including non-residents, NRIs, persons of Indian origin (PIOs), foreign citizens with PIO status and foreign nationals of Indian origin.
The Scheme is NOT available to corporations, partnership firms, Hindu Undivided Family (HUF), Trusts etc.
Benefits provided by LRS
LRS is an easy process that anyone can use to transfer money between two countries.
It’s especially useful for businesses because they can use it to transfer funds to India, and investors can receive their investments back home.
LRS also has some added benefits, like fast transfer timing and no issues with exchange rates.
From UPSC perspective, the following things are important :
Prelims level: Exercise Konkan
Mains level: NA
Ex Konkan, the annual bilateral maritime exercise between the Indian Navy and the Royal Navy, was recently held off the Konkan coast in the Arabian Sea.
Exercise Konkan 2023
Konkan exercise is the annual bilateral maritime exercise between the Indian Navy and the UK’s Royal Navy.
INS Trishul, a guided missile frigate, and HMS Lancaster, a Type 23 guided missile frigate, participated in this edition.
They undertook multiple maritime drills to enhance interoperability between the two forces and imbibe best practices.
The exercises covered all domains of maritime operations, air, surface, and sub-surface.
It included gunnery shoots on the surface inflatable target ‘Killer Tomato’, helicopter operations, anti-air, and anti-submarine warfare drills, Visit Board Search and Seizure (VBSS), ship maneuvers, and exchange of personnel.
The exercise will help the Indian Navy and Royal Navy work together to improve maritime security and maintain a rules-based order in the region.
From UPSC perspective, the following things are important :
Prelims level: PLI scheme
Mains level: Read the attached story
Central idea
The Indian government has given ₹1,645 crore in PLI incentives to electronics manufacturers to bring more of the supply chain to India.
There is a growing need for semiconductors as they are used in almost all modern electronics.
Many countries are moving away from China’s dominance in the sector due to supply chain vulnerabilities and geopolitical pressures.
Semiconductor manufacturing in India
Invest India agency estimates electronics manufacturing to be worth $300 billion by 2025-26.
While finished product facilities have been growing, fabs for chipsets and displays are rarer.
Ministry of Electronics and Information Technology is set to announce the first semiconductor manufacturing fab soon.
Semiconductor Industry Association (SIA) suggests India to leverage its strength in the electronics manufacturing value chain.
Foundry companies require high investments while OSAT generate better margins.
Outsourced Semiconductor Assembly and Test (OSAT) set-ups take care of less capital-intensive parts of chipmaking and run specialized tests.
Many chip facilities tend to be captive units of large companies.
Importance of semiconductor manufacturing
Semiconductor fabrication units turn raw elements like silicon into integrated circuits used in practically all electronic hardware.
Fabs are highly capital-intensive undertakings costing billions of dollars for large facilities.
Fabs require a highly reliable and high-quality supply of water, electricity, and insulation from the elements, reflecting the high degree of precision, cost, and capital needed to make sophisticated circuits.
Countries have spotted strategic value in cornering segments of the value chain for fabs.
China has pulled ahead of Taiwan last year in terms of global sales from fabs.
The US passed the CHIPS Act to provide subsidies and investments to manufacturers opening fabs and making semiconductors in the US.
US also pushed some restrictions and sanctions on the Chinese semiconductor industry.
India’s advantages in semiconductor manufacturing
India has an advantage in semiconductor manufacturing as a large portion of semiconductor design engineers globally are either Indian or Indian-origin.
Chipmaking firms such as Intel and NVIDIA have large facilities in India that are already flush with Indian talent working on design problems.
China is losing control over this advantage in the face of sanctions and an ageing population.
Experts believes that without a sustainable pipeline of high calibre talent, China’s goals for the semiconductor sector will not be achievable.
Various challenges
Huge Investments involved: Semiconductor Fabrication facility requires many expensive devices to function. Complex tools and equipment are required to test quality and move silicon from location to location within the ultra-clean confines of the plant.
Economy of scale: In semiconductor fabrication, a high volume of production is required to be maintain so as to meet the increasing demand of the marketplace, at the same time, a strong financial backing as Indian market is very much uncertain about financial fluctuations.
Requirement highly skilled labour: Semiconductor fabrication is a multiple-step sequence of photolithographic and chemical processing steps during which electronic circuits are gradually created on a wafer made of pure semiconducting material. This actually requires high skills.
Scarcity of raw materials: From a value-chain perspective, it needs silicon, Germanium & Gallium arsenide and Silicon carbide which are not available in India and needs to be imported.
Uncertain Indian market: A semiconductor fabrication facility in India cannot independently rely on Indian customers for their entire sales structure. They have to maintain overseas customer base to balance inflections from Indian market due to market trends, government policies etc.
Disposal of hazardous waste: Many toxic materials are used in the fabrication process such as arsenic, antimony, and phosphorus. Hazardous impact on the environment by the industry may act as an impediment to India’s commitment to mitigate climate change.
Policy initiatives in India
Make in India:This aims to transform India into a global hub for Electronic System Design and Manufacturing (ESDM).
PLI scheme:In December 2021 the Centre sanctioned ₹76,000 crore under the production-linked incentive (PLI) scheme to encourage the manufacturing of various semiconductor goods within India.
DLI scheme:It offers financial incentives, design infrastructure support across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design.
Digital RISC-V (DIR-V) program: It intends to enable the production of microprocessors in India in the upcoming days achieving industry-grade silicon and design wins by December 2023.
India Semiconductor Mission (ISM):The vision is to build a vibrant semiconductor and display design and innovation ecosystem to enable India’s emergence as a global hub for electronics manufacturing and design
Way forward
To ensure greater resilience in a volatile world, India needs to undertake the following measures to sustain the domestic and global semiconductor demand:
Policy framework: As foundry setup is highly Capital intensive, it must be supported with a solid long term plan and financial backing. This backing is required from the entrepreneur & the government both.
Fiscal sustenance: In text of Indian Government as tax holiday, subsidy, zero duty, financial investment etc. will play an important role in promoting the Fab along with the semiconductor industry in India; this will put further pressure on already large Fiscal Deficit.
Support Infrastructure: World class, sustainable infrastructure, as required by a modern Fab be provided, with swift transportation, large quantity of pure water, uninterrupted electricity, communication, pollutant free environment etc.
Conclusion
India’s electronic manufacturing incentive programs are geared towards breaking new ground in ambitious plans connected to popular brands such as Apple.
The Indian government is working to create an ecosystem that will facilitate sustainable growth and fiscal feasibility in the semiconductor industry.
The electronics value chain must be an international undertaking among like-minded nations with common values to be effective.
From UPSC perspective, the following things are important :
Prelims level: CAMPA, IPCC
Mains level: Not Much
Central idea
The Intergovernmental Panel on Climate Change (IPCC) released its Synthesis Report, where the IPCC notes the significance of preserving natural ecosystems to mitigate climate change.
The report has raised concerns about the ongoing policy of afforestation in India that allows forests to be cut down and replaced elsewhere.
Afforestation in India
Afforestation has become an increasingly contested policy in India.
The government has pledged to add “an additional (cumulative) carbon sink of 2.5-3 GtCO2e through additional forest and tree cover by 2030”.
Why is CAMPA invoked in the IPCC report?
India’s Compensatory Afforestation Fund Management and Planning Authority (CAMPA) has been accused of facilitating the destruction of natural ecosystems in exchange for forests to be set up elsewhere.
What is CAMPA?
CAMPA is a body established by the Indian government in 2002 on the orders of the Supreme Court.
The purpose of CAMPA is to promote afforestation and regeneration activities as a way of compensating for forest land that has been diverted to non-forest uses, such as for dams, mines, and other development projects.
The Forest (Conservation) Act of 1980 requires project proponents to identify land elsewhere for afforestation and pay for the afforestation exercise.
The money paid by project proponents is deposited in a fund overseen by CAMPA.
Controversies surrounding CAMPA
Unutilised fund: The money paid to CAMPA sits in a fund, but most of the fund remained unspent until 2013, leading to criticism of facilitating the destruction of natural ecosystems. In 2006-2012, the fund grew from Rs 1,200 crore to Rs 23,600 crore.
Threatening endangered landscape: CAMPA also came under fire for funding projects that endangered landscape connectivity and biodiversity corridors.
Unsustainability of artificial plantation: CAMPA has been accused for planting non-native species or artificial plantations that don’t compensate for the ecosystem loss.
Why is forestation under CAMPA unsustainable?
Natural ecosystems sequester more carbon: This report highlights the importance of preserving natural ecosystems and reducing the conversion of natural ecosystems to mitigate climate change.
Renewable energy installation is more sustainable: The IPCC report also found that solar power has more mitigating potential than reducing the conversion of natural ecosystems, and wind power was the third highest.
Conclusion
Preserving natural ecosystems should be recognized as an essential means to mitigate climate change, and environment impact assessments should include climate costs.
Policies such as afforestation, ecosystem restoration, and renewable energy must be carefully evaluated to reduce the impact of the climate crisis.
From UPSC perspective, the following things are important :
Prelims level: Various provisions for disqualifications of MP/MLAs
Mains level: Not Much
Central idea: A politician has been sentenced to two years in jail by a Surat court in a 2019 defamation case filed against him for his remarks about the surname of a community. This conviction could lead to his disqualification.
Disqualification of a Lawmaker
Disqualification of a lawmaker is prescribed in three situations-
Constitutional provisions: First is through Articles 102(1) and 191(1) for disqualification of a member of Parliament and a member of the Legislative Assembly respectively. The grounds here include holding an office of profit, being of unsound mind or insolvent or not having valid citizenship.
Defection: It is in the Tenth Schedule of the Constitution, which provides for the disqualification of the members on grounds of defection.
Representation of The People Act (RPA), 1951: It provides for disqualification for conviction in criminal cases.
Disqualification under RPA, 1951
It provides for disqualification for conviction in criminal cases.
Section 8 of the RPA deals with disqualification for conviction of offences.
The provision is aimed at “preventing the criminalisation of politics” and keeping ‘tainted’ lawmakers from contesting elections.
Section 8(3) states: “A person convicted of any offence and sentenced to imprisonment for not less than two years shall be disqualified from the date of such conviction and shall continue to be disqualified for a further period of six years since his release.”
Appeal and stay of disqualification
The disqualification can be reversed if a higher court grants a stay on the conviction or decides the appeal in favour of the convicted lawmaker.
In a 2018 decision in ‘Lok Prahari v Union of India’, the Supreme Court clarified that the disqualification “will not operate from the date of the stay of conviction by the appellate court.”
This means that Gandhi’s first appeal would be before the Surat Sessions Court and then before the Gujarat High Court.
Changes in the Law
Under the RPA, Section 8(4) stated that the disqualification takes effect only “after three months have elapsed” from the date of conviction.
Within that period, lawmakers could file an appeal against the sentence before the High Court.
However, in the landmark 2013 ruling in ‘Lily Thomas v Union of India’, the Supreme Court struck down Section 8(4) of the RPA as unconstitutional.
Lily Thomas Verdict
The Lily Thomas verdict was a landmark judgment delivered by the Supreme Court of India in 2013.
The verdict struck down a provision in the Representation of the People Act (RPA), which allowed convicted lawmakers to continue in office if they filed an appeal within three months of their conviction.
The provision, which was part of Section 8(4) of the RPA, had been criticized for allowing convicted politicians to continue to hold public office while their appeals were pending in higher courts, and for contributing to the criminalization of politics in India.The verdict was seen as a major step towards cleaning up Indian politics and ensuring that convicted criminals do not get to occupy public offices.
From UPSC perspective, the following things are important :
Prelims level: Guillotine Motion
Mains level: Not Much
Central idea: Amidst the ongoing stalemate in Parliament, some MPs said the government may guillotine the demands for grants and pass the Finance Bill without any discussion in the Lok Sabha.
What is a Guillotine?
A guillotine is an apparatus designed for efficiently carrying out executions by beheading.
It consists of a large, weighted blade that is raised to the top of a tall, erect frame and released to fall on the neck of a condemned person secured at the bottom of the frame, executing them in a single, clean pass.
The origin of the exact device as well as the term can be found in France.
The design of the guillotine was intended to make capital punishment more reliable and less painful in accordance with new Enlightenment ideas of human rights.
Guillotine Motion in Parliament
In legislative parlance, to “guillotine” means to bunch together and fast-track the passage of financial business.
It is a fairly common procedural exercise in Lok Sabha during the Budget Session.
After the Budget is presented, Parliament goes into recess for about three weeks, during which time the House Standing Committees examine Demands for Grants for various Ministries, and prepare reports.
After Parliament reassembles, the Business Advisory Committee (BAC) draws up a schedule for discussions on the Demands for Grants.
Given the limitation of time, the House cannot take up the expenditure demands of all Ministries; therefore, the BAC identifies some important Ministries for discussion.
It usually lists Demands for Grants of the Ministries of Home, Defence, External Affairs, Agriculture, Rural Development and Human Resource Development.
Why use such a motion?
Members utilise the opportunity to discuss the policies and working of Ministries.
Once the House is done with these debates, the Speaker applies the “guillotine”, and all outstanding demands for grants are put to vote at once.
This usually happens on the last day earmarked for the discussion on the Budget.
The intention is to ensure the timely passage of the Finance Bill, marking the completion of the legislative exercise with regard to the Budget.
From UPSC perspective, the following things are important :
Prelims level: Sharda Peeth
Mains level: Not Much
Home Minister said that the government will move forward to open Sharda Peeth on the lines of the Kartarpur corridor.
Why in news?
Activists request that the Sharda Peeth corridor should be made operational on the lines of Nankana Sahib Gurudwaras and the Kartarpur corridor in Pakistan.
Sharda Peeth
Sharda Peeth is a Hindu temple located in the Neelam Valley in Pakistan-occupied Kashmir.
It is considered one of the 18 Maha Shakti Peethas, or major shrines, of the Hindu goddess Shakti.
The temple is an important pilgrimage site for Hindus, particularly those from the Kashmir Valley.
History and Significance
The temple is believed to have been established in the 6th century CE by Adi Shankaracharya, a famous Hindu philosopher and saint.
Sharda Peeth became an important center of learning and scholarship during the medieval period, attracting scholars from all over India and even from as far as Central Asia.
The temple was destroyed several times by invading armies and underwent major renovations and restorations under various rulers over the centuries.
The temple’s importance declined during the colonial period and it fell into disrepair in the years following India’s partition in 1947.
Current rundown state and Controversy
Sharda Peeth is now located in a remote and inaccessible part of Pakistan-administered Kashmir and has become a subject of political and religious controversy.
The Indian government has long sought to open a pilgrimage corridor to Sharda Peeth for Hindu devotees, but this has been complicated by the ongoing conflict and tension between India and Pakistan over Kashmir.
In recent years, there have been calls for the temple to be handed over to India or for it to be converted into a museum that can be visited by people from both sides of the border.
Significance in Kashmiri Identity
Sharda Peeth is an important part of Kashmiri Hindu identity and culture, and its restoration and revival have been a longstanding demand of the community.
Some Kashmiri Pandits view the temple as a symbol of their lost homeland and argue that its restoration would be a step towards reclaiming their cultural and religious heritage.
Others, however, caution against politicizing the temple and argue that it should be seen as a shared heritage of all Kashmiris, regardless of their religious or political affiliations.
Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test
Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left
From UPSC perspective, the following things are important :
Prelims level: Abel Prize
Mains level: Not Much
The Abel Prize for mathematics for 2023 was awarded to Argentine-American Luis Caffarelli, an expert in “partial differential equations” which can explain phenomena ranging from how water flows to population growth.
Abel Prize
The Abel Prize is a prize awarded annually by the King of Norway to one or more outstanding mathematicians.
It is named after Norwegian mathematician Niels Henrik Abel (1802–1829) and directly modeled after the Nobel Prizes.
It comes with a monetary award of 7.5 million Norwegian kroner (NOK) (increased from 6 million NOK in 2019).
Its establishment was proposed by the Norwegian mathematician Sophus Lie when he learned that Alfred Nobel’s plans for annual prizes would not include a prize in mathematics.
The laureates are selected by the Abel Committee, the members of which are appointed by the Norwegian Academy of Science and Letters.
Has any Indian ever won this prestigious prize?
Srinivasa Varadhan, an Indian-American citizen won the Abel Prize in the year 2007 for his valuable contribution in “probability theory and in particular for creating a unified theory of large deviation”.
Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test
Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left
From UPSC perspective, the following things are important :
Prelims level: CBUD App
Mains level: NA
Prime Minister has launched the ‘Call Before u Dig’ (CBuD) app, to facilitate coordination between excavation agencies and underground utility owners to prevent damage to utilities due to digging.
Call Before u Dig (CBUD)
The app is an initiative of the Department of Telecommunications, Ministry of Communications.
Uncoordinated digging and excavation causes damage to underlying assets like optical fibre cables, leading to losses of about Rs 3,000 crore every year.
The app aims to prevent damage to utilities due to digging.
It will save potential business loss and minimise discomfort to citizens due to reduced disruption in essential services like road, telecom, water, gas and electricity.
How does the app work?
The CBuD app connects excavators and asset owners through SMS/Email notifications and click-to-call.
It ensures planned excavations in the country while ensuring the safety of underground assets.
Excavating companies can inquire about existing subsurface utilities before starting excavation work.
Utility owners can find out about impending work at the location.
Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test
Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left
From UPSC perspective, the following things are important :
Prelims level: IPCC
Mains level: Not Much
The IPCC Synthesis Report warns that the world is on track to breach the 1.5-degree Celsius global warming limit by the 2030s, which would cause irrevocable damage to the planet’s ecosystem and severely impact humans and other living beings.
What is IPCC Synthesis Report?
The IPCC Synthesis Report is a summary report produced by the Intergovernmental Panel on Climate Change (IPCC) that presents key findings and policy recommendations from the group’s previous assessment reports.
It aims to provide policymakers with a concise overview of the current state of knowledge on climate change, its impacts, and options for mitigation and adaptation.
The Synthesis Report is released at the end of each assessment cycle, which typically takes six to seven years, and is approved by representatives from the IPCC’s member governments.
Intergovernmental Panel on Climate Change (IPCC)
The IPCC, an intergovernmental body was established in 1988 by the World Meteorological Organization (WMO) and the United Nations Environment Programme (UNEP).
It was later endorsed by the UN General Assembly. Membership is open to all members of the WMO and UN.
The IPCC produces reports that contribute to the work of the UN Framework Convention on Climate Change (UNFCCC), the main international treaty on climate change.
Key highlights of the synthesis report
Climate extremes on rise: Due to the current global warming levels, almost every region across the planet is already experiencing climate extremes, an uptick in deaths due to heatwaves, reduced food and water security, and damage to ecosystems, causing mass extinction of species on land and in the ocean.
High vulnerability: More than three billion people live in areas that are “highly vulnerable” to climate change.
Boost up climate finance: The largest gaps in climate finance are in the developing world, but so too are the largest opportunities.
Key concerns raised
The report highlights the urgent need for-
Limiting the use of fossil fuels
Increasing finance to climate investments
Expanding the clean energy infrastructure,
Reducing nitrogen pollution from agriculture, curtail food waste, and
Adopting measures to make it easier for people to lead low-carbon lifestyles
Conclusion
The report adds that there is still a chance to avert this mass-scale destruction, but it would require an enormous global effort to slash greenhouse gas emissions in half by 2030 and completely phase them out by 2050.
Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test
Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left
From UPSC perspective, the following things are important :
Prelims level: National Security Act
Mains level: NSA and its provisions
Punjab Advocate General has confirmed the invocation of National Security Act (NSA) to Amritpal Singh’s case.
National Security Act, 1980
The NSA was passed by the Parliament in 1980 and has been amended several times since then.
It empowers the state to detain a person without a formal charge and without trial.
It is invoked when a person is taken into custody to prevent them from acting in any manner prejudicial to “the security of the state” or for “maintenance of the public order”.
It is an administrative order passed either by the Divisional Commissioner or the District Magistrate.
Grounds for detention under NSA
NSA can be invoked to prevent a person from acting in any manner prejudicial to the defence of India, relations of India with foreign powers or the security of India.
Among others, it can also be applied to prevent a person from acting in any manner prejudicial to the maintenance of supply and services essential to the community.
An individual can be detained without a charge for a maximum period of 12 months.
The detained person can be held for 10 to 12 days in special circumstances without being told the charges against them.
Protection available under the Act
One crucial procedural safeguard under the NSA is granted under Article 22(5).
All the detained persons have the right to make an effective representation before an independent advisory board.
The board is chaired by a member who is, or has been, a judge of a high court.
The DM who passes the detention order is protected under the Act and no prosecution or any legal proceeding can be initiated against the official who carries out the orders.
Cases for misuse
The Supreme Court in earlier cases had held that to prevent “misuse of this potentially dangerous power, the law of preventive detention has to be strictly construed”.
“Meticulous compliance with the procedural safeguards” has to be ensured.
Criticism of NSA
Human rights groups have said in the past that the Act vitiates Article 22 of the Constitution and various provisions under the CrPC that safeguard the interest of an arrested person.
Under the CrPC, the arrested person has to be produced before the nearest Magistrate within 24 hours, but the NSA carves out an exception.
Some human rights groups argue that it is often misused by authorities to silence political opponents or those who are critical of the government.
There have been calls for the Act to be repealed or amended to prevent its abuse.
However, there is an opposing view that the Act cannot be construed to be a draconian law as it protects the larger interest of the state and is therefore likely to stay.
Try this MCQ:
Which of the following is a true statement about the National Security Act, 1980?
A) The Act allows preventive detention only for specific violations of the law.
B) The detained person has the right to move a bail application before a criminal court.
C) A person can be detained under the Act only if he/she has been charged with a crime.
D) The Act can be invoked to prevent a person from acting in any manner prejudicial to the defence of India, relations of India with foreign powers or the security of India.
Post your answers here.
Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test
Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left
From UPSC perspective, the following things are important :
Prelims level: Enemy Properties
Mains level: Not Much
MA Jinnah’s house in Mumbai
The home ministry has begun the process to sell enemy properties, immovable assets left behind by people who have taken citizenship in Pakistan and China after wars with these countries.
What one means by Enemy Property?
Enemy property refers to the assets and properties of individuals or entities that have been declared as “enemies” by the Indian government.
This can include individuals or entities who are citizens of a country that is at war with India, or who have engaged in hostilities or acted against the interests of India.
Why was such a concept initiated?
In the wake of the India-Pakistan wars of 1965 and 1971, there was the migration of people from India to Pakistan.
Under the Defence of India Rules framed under The Defence of India Act, 1962, the Government of India took over the properties and companies of those who took Pakistani nationality.
These “enemy properties” were vested by the central government in the Custodian of Enemy Property for India.
The same was done for property left behind by those who went to China after the 1962 Sino-Indian war.
The Tashkent Declaration of January 10, 1966 included a clause that said India and Pakistan would discuss the return of the property and assets taken over by either side in connection with the conflict.
However, the Government of Pakistan disposed of all such properties in their country in the year 1971 itself.
Dealing with enemy property
The Enemy Property Act, enacted in 1968, provided for the continuous vesting of enemy property in the Custodian of Enemy Property for India (CEPI)under the Home Ministry.
The central government, through the Custodian, is in possession of enemy properties spread across many states in the country.
Some movable properties too, are categorised as enemy properties.
In 2017, Parliament passed The Enemy Property (Amendment and Validation) Bill, 2016, which amended The Enemy Property Act, 1968, and The Public Premises (Eviction of Unauthorised Occupants) Act, 1971.
Total such properties in India
There are 12,611 enemy properties in India estimated to be worth over ₹1 lakh crore.
The government has earned over ₹3,400 crore from disposal of enemy properties, mostly movable assets like shares and gold.
None of the immovable enemy properties has been sold so far.
Out of the 12,611 properties vested with the CEPI, 12,485 were related to Pakistani nationals and 126 to Chinese citizens.
Uttar Pradesh has the highest number of enemy properties (6,255), followed by West Bengal, Delhi, Goa, Maharashtra, Telangana, Gujarat, Tripura, Bihar, Madhya Pradesh, Chhattisgarh, and Haryana.
Kerala, Uttarakhand, Tamil Nadu, Meghalaya, Assam, Karnataka, Rajasthan, Jharkhand, Daman and Diu, and Andhra Pradesh have enemy properties as well.
Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test
Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left
From UPSC perspective, the following things are important :
Prelims level: Sand Battery
Mains level: Not Much
Finland has successfully installed the world’s first sand battery that can store heat from various energy sources for months.
What is the Sand Battery System?
The battery is a massive steel silo, 7 m tall and 4 m wide with 100 tonnes of sand, and was installed in Finland’s Kankaanpaa town in June 2022.
It is connected to the town’s centralised heating network that keeps buildings and public water systems warm.
The storage system has three main components:
Sand silo,
Electrical air heater, and
Air-to-water heat exchanger
Working principle
For charging the sand silo, air is heated to 600°C in the electrical air heater.
The hot air is then circulated inside the silo using a heat-exchange pipe and blowers to raise the temperature of the sand at the silo’s core to 600°C.
When the storage enters the discharging stage, the blowers are used to pump air into the pipe inside the sand silo.
Once the air reaches 200°C, it is transferred to the air-to-water heat exchanger, where it is used to boil water.
It is then sent to the heating network.
Electricity Requirements and Capacity of the Battery
The storage system requires electricity at all times to charge the battery, monitor the temperature during standby, and run the blowers when the battery is used.
The installed battery can store 8 megawatt-hours (MWh) of energy and release heat at 0.1 MW, which is enough to provide heating and hot water for about 100 homes and a public swimming pool.
Advantages of Sand as a Heat Storage Material
The Finnish researchers replaced water with sand in the battery system because of its advantages.
Sand can be heated up to 600 degrees Celsius (°C), whereas water starts to boil at 100°C.
It also has low heat conductivity, which reduces energy loss.
Importance of Heat Energy
Heat accounts for half of the world’s energy use, followed by transport (30 per cent) and electricity (20 per cent), as per the International Energy Agency (IEA).
Currently, 80 per cent of the world’s energy comes from dirty fossil fuels.
Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test
Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left
From UPSC perspective, the following things are important :
Prelims level: Generative AI
Mains level: AI, Machine Learning
Central idea: Google and Microsoft have added generative AI to their search engines and browsers, as well as to consumer products such as Gmail, Docs, Copilot 365, Teams, Outlook, Word, Excel, and more.
What is Generative AI?
Like other forms of artificial intelligence, generative AI learns how to take actions from past data.
It creates brand new content – a text, an image, even computer code – based on that training, instead of simply categorizing or identifying data like other AI.
The most famous generative AI application is ChatGPT, a chatbot that Microsoft-backed OpenAI released late last year.
The AI powering it is known as a large language model because it takes in a text prompt and from that writes a human-like response.
Generative AI products offered by Google and Microsoft
Google and Microsoft have added generative AI to their search engines and browsers, as well as to consumer products such as Gmail, Docs, Copilot 365, Teams, Outlook, Word, Excel, and more.
In Google’s Gmail and Docs, generative AI can help users write documents automatically, such as a welcome email for employees.
Copilot 365, a feature of Microsoft 365 apps, can generate spreadsheets on command or even write an entire article on Word, depending on the topic.
Both companies are making generative AI platforms and models a part of their cloud offerings, Microsoft Azure and Google Cloud.
What are Google and Microsoft offering?
In Google’s Gmail and Docs, generative AI will help users write documents automatically.
For instance, an HR executive can simply ask the AI app to write a welcome email for employees, instead of typing out the document.
Similarly, Microsoft has ‘Copilot 365’ for its Microsoft 365 apps, which includes Teams, Outlook, Word and Excel.
Here, AI could generate a spreadsheet on command, or even write down an entire article on Word (depending on the topic).
Copilot can also match entries on Calendar with emails, and generate quick, helpful pointers that a person should focus on in their meetings.
How can these developments impact human workforce?
The technology is currently not very accurate and often provides incorrect responses, despite being popular.
During the initial demonstrations of these products, Google and Microsoft were found to give inaccurate responses.
While these products may have utility, they are not yet capable of replacing humans in the workplace.
Humans are better suited to check information generated by AI.
Various challenges posed
Bias: The data that is used to train generative AI systems can be biased, leading to biased outputs.
Misinformation: Since generative AI systems learn from the internet or training data which itself may have been inaccurate, they could increase the spread of misinformation online.
Security: Generative AI systems could be used to create deepfakes or other forms of digital manipulation that could be used to spread disinformation or commit fraud.
Ethics: There are ethical concerns around the use of generative AI, particularly when it comes to issues like privacy, accountability, and transparency.
Regulation: There is a need for regulatory frameworks to ensure that generative AI is used responsibly and ethically, and that it does not have any negative impacts on society.
Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test
Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left
From UPSC perspective, the following things are important :
Prelims level: Letter of Comfort
Mains level: NPA crisis
Central idea: The Finance Ministry has allowed central public sector firms (CPSUs) to issue letters of comfort with a condition that they should clearly state that the Government of India will not be liable for any consequences arising from such letters.
What is aLetter of Comfort?
A letter of comfort is a support document issued to a borrower that adds some strength to the transaction when giving loans.
Letter of comforts are usually issued by a third party or a stakeholder in the transaction.
For instance, a holding company can give a letter of comfort on behalf of its subsidiary or a government can issue a letter of comfort for public sector enterprises.
The letter of comfort can also be issued by banks, NBFCs and auditors.
Obligation status of LoCs
The letter of comfort is not legally binding or an obligation by the holding company to repay the loans.
It is just an assurance to the lender that the holding company is aware of the transaction, the policies of the subsidiary and its intentions in seeking a loan.
This provides some comfort to the financial institution to lend money for short term or long term.
One can say that the letter of comfort could become a moral obligation and not a legal one.
How is it different from letter of guarantee?
A letter of comfort is different from a letter of guarantee.
As spelled out in the name, the letter of guarantee acts as a commitment to the lender that the issuing company is taking responsibility for the repayment.
It is also legally binding and the transaction becomes an obligation for the guarantor.
Holding companies usually give letters of comfort when they are unable or unwilling to give letters of guarantees.
Try this MCQ-
Q. Which of the following statements is true about a Letter of Comfort?
A) It is a legally binding document that obligates the holding company to repay the loan.
B) It is issued only by banks and NBFCs.
C) It is an assurance provided by a third party to the lender that adds strength to the transaction when giving loans.
D) It is the same as a Letter of Guarantee in terms of its legal obligations.
Post your answers here.
Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test
Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left
From UPSC perspective, the following things are important :
Prelims level: Background Radiation
Mains level: Not Much
Central idea: The article discusses a pan-India study conducted by scientists at the Bhabha Atomic Research Centre (BARC) which found that background radiation levels in parts of Kerala are nearly three times more than what’s been assumed.
What isBackground Radiation?
Background radiation is a measure of the level of ionizing radiation present in the environment at a particular location which is not due to deliberate introduction of radiation sources.
Background radiation originates from a variety of sources, both natural and artificial.
Nuclear Radiation and its Types
There are three main types of nuclear radiation: alpha particles, beta particles, and gamma rays.
1. Alpha particles are made up of two protons and two neutrons and are essentially helium nuclei. They have a positive charge and are relatively large and heavy, which means they can be stopped by a piece of paper or the outer layer of skin.
2. Beta particles are high-energy electrons that are emitted from the nucleus of an atom. They have a negative charge and are much smaller than alpha particles, which means they can penetrate through the skin and into the body.
3. Gamma rays are high-energy electromagnetic radiation, similar to X-rays. They are emitted from the nucleus of an atom and have no charge. They are extremely penetrating and can travel long distances through air and most materials, including the human body.
How is it measured?
The International Atomic Energy Agency (IAEA) specifies maximum radiation exposure levels and this has also been adopted by India’s atomic energy establishment.
Public exposure shouldn’t exceed 1 milli-Sievert every year, those who work in plants or are by virtue of their occupation shouldn’t be exposed to over 30 milli-Sievert every year.
Generally it is measured in nanogray per second. A (nGy/s) is a decimal fraction of the SI-derived unit of ionizing radiation absorbed dose rate.
Natural sources-
Cosmic radiation
Environmental radioactivity from naturally occurring radioactive materials (such as radon and radium)
Man-made sources-
Medical X-rays,
Fallout from nuclear weapons testing and nuclear accidents.
Factors affecting such radiation
Natural background radiation is all around us.
Background radiation varies from place to place and over time, depending on the amount of naturally occurring radioactive elements in soil, water and air.
Weather conditions also affect radiation levels, as snow cover may shield these elements, and radioactive particulates can wash out of the air during rain storms.
Cosmic radiation from the sun, our galaxy, and beyond is constantly around us and contributes to natural background radiation.
Altitude and latitude can also influence the level of background radiation at any one site.
How threatening is it?
All rocks and soils contain some trace amount of natural radioactivity and can sometimes be ingested or inhaled if disturbed.
Radon is a gas that can concentrate indoors and be inhaled, along with its decay products.
We can also ingest radioactivity from the food we eat and the water we drink.
A number of factors determine the annual dose you and your family receive from background radiation.
Typically, Gamma rays are a type of such radiation that can pass through matter unobstructed, and are harmless in small doses, but can be dangerous in concentrated bursts.
Findings of the BARC Study
The study found that the average natural background levels of gamma radiation in India was 94 nGy/hr (nano Gray per hour) (or roughly 0.8 millisievert/year).
The last study conducted in 1986 computed such radiation to be 89 nGy/hr.
The study found that the levels in Kollam district, Kerala were 9,562 nGy/hr, or about three times more than what was assumed.
This computes to about 70 milliGray a year, or a little more than what a worker in a nuclear plant is exposed to.
This however does not necessarily mean that those at Kollam are being exposed to dangerous levels of radiation, as past studies have not found any higher rates of cancer or mortality.
Reasons for Higher Radiation Levels in Kerala
The higher radiation levels in Kollam are attributed to monazite sands that are high in thorium, which is part of India’s long-term plan to sustainably produce nuclear fuel.
Southern India has higher levels of radiation due to the presence of granite and basaltic, volcanic rock, which contains uranium deposits.
From UPSC perspective, the following things are important :
Prelims level: Sugar cultivation in India
Mains level: Not Much
Central idea: India’s success story in sugar exports
India’s sugar exports have soared from $810.9 million in 2017-18 to $4.6 billion in 2021-22, and could cross $5.5 billion in the fiscal year ending March 31.
The increase is significant in quantity terms too, with India’s shipments increasing from a mere 0.46 lakh tonnes in 2016-17 to 110 lakh tonnes in 2021-22.
India has gone from being a marginal player in sugar exports five years ago to No. 2 in the world currently, behind only Brazil.
Favourite destinations
The biggest importers of Indian raw sugar were Indonesia (16.73 lt), Bangladesh (12.10 lt), Saudi Arabia (6.83 lt), Iraq (4.78 lt) and Malaysia (4.15 lt).
The country also exported 53.71 lt of white/ refined sugar, the leading destinations for which included Afghanistan (7.54 lt), Somalia (5.17 lt), Djibouti (4.90 lt), Sri Lanka (4.27 lt), China (2.58 lt), and Sudan (1.08 lt).
The highest decline in exports has been registered by the European Union (which produces sugar from beet, unlike India and Brazil that only crush cane): from 39.74 lt in 2017-18 to 8.02 lt in 2021-22.
Which grades of sugar does India export?
Raw sugar is what mills produce after the first crystallization of juice obtained from crushing of cane.
This sugar is rough and brownish in color, with an ICUMSA value of 600-1,200 or higher.
ICUMSA is a measure of the purity of sugar based on color.
This raw sugar is processed in refineries for removal of impurities and de-colorization.
The end product is refined white cane sugar having a standard ICUMSA value of 45.
Till 2017-18, India mainly shipped plantation white sugar with 100-150 ICUMSA value, also known as low-quality whites or LQW in international markets.
Reasons behind India’s surge in sugar exports
Indian raw sugar is free of dextran, unlike Brazilian raws.
Indian mills can supply raws with a very high polarization of 98.5-99.5%, which is higher than the polarization of raws from Brazil, Thailand, and Australia.
Indian raws today fetch a 4% premium over the global benchmark (New York No. 11 futures contract) price, while LQW sells at a $40/tonne discount to the world price (London No. 5 futures) for 45 ICUMSA whites.
Indonesia agreed to tweak its norms in December 2019 to enable imports from India, which further boosted India’s efforts to push exports of raws.
Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test
Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left
From UPSC perspective, the following things are important :
Prelims level: Starberry-Sense
Mains level: Not Much
Researchers at the Indian Institute of Astrophysics (IIA) have developed a low-cost star sensor for astronomy and small CubeSat class satellite missions.
What is Starberry-Sense?
Based on commercial/off-the-shelf components, this star sensor costs less than 10% of those available in the market.
It is made from a single-board Linux computer called Raspberry Pi, which is widely used among electronics hobby enthusiasts.
Benefits of Starberry-Sense
Starberry-Sense can help small CubeSat class satellite missions find their orientation in space.
The instrument can be used for CubeSats and other small satellite missions in the future.
The position of stars in the sky is fixed relative to each other and can be used as a stable reference frame to calculate the orientation of a satellite in orbit.
Successful test
The star sensor has successfully undergone the vibration and thermal vacuum test that qualifies it for a space launch and operations.
These tests were conducted in-house at the environmental test facility located at the CREST Campus of IIA in Hosakote.
Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test
Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left
From UPSC perspective, the following things are important :
Prelims level: NRI, OCI, PIO
Mains level: E-Postal Ballot system
Central idea: The Election Commission of India (EC) has proposed to facilitate the electronically-transmitted postal ballot system for overseas Indian voters.
Why such a move?
The total number of overseas voters on January 1, 2023, was over 1.15 lakh.
Measures taken
The Representation of the People (Amendment) Bill, 2018 was passed by the Lok Sabha in August 2018 on the recommendation of the EC.
The Bill sought to enable overseas electors to cast their vote either in person or by proxy.
However, it lapsed when the 16th Lok Sabha was dissolved as it was pending in the Rajya Sabha.
How can overseas voters currently vote in Indian elections?
Prior to 2010, an Indian citizen who is an eligible voter and was residing abroad for more than six months, would not have been able to vote in elections.
This was because the NRI’s name was deleted from electoral rolls if he or she stayed outside the country for more than six months at a stretch.
After the passing of the Representation of the People (Amendment) Act, 2010, eligible NRIs who had stayed abroad beyond six months have been able to vote, but only in person at the polling station where they have been enrolled as an overseas elector.
Just as any resident Indian citizen above the age of 18 years) is eligible to vote in the constituency where she/he is a resident, and overseas Indian citizens are also eligible to do so.
In the case of overseas voters, the address mentioned in the passport is taken as the place of ordinary residence and chosen as the constituency for the overseas voter to enrol in.
How has the existing facility worked so far?
Hike in voters: From merely 11,846 overseas voters who registered in 2014, the number went up to close to a lakh in 2019. But the bulk of these voters (nearly 90%) belonged to just one State — Kerala.
Section 20-1A, Part III of the RP Act: It addresses this to some extent by qualifying “a person absenting himself temporarily from his place of ordinary residence shall not by reason thereof cease to be ordinarily resident therein.
Proxyprovisions: The Bill provided for overseas voters to be able to appoint a proxy to cast their votes on their behalf, subject to conditions laid down in the Conduct of Election Rules, 1961.
Electronically Transmitted Postal Ballot System: The ECI then approached the government to permit NRIs to vote via postal ballots similar to a system that is already used by service voters, (a member of the armed Forces of the Union; or a member of a force to which provisions of the Army Act, 1950 (46 of 1950) which is ETPBS. The ECI proposed to extend this facility to overseas voters as well.
What is ETPBS and how does it function?
The Conduct of Election Rules, 1961 was amended in 2016to allow service voters to use the ETPBS.
Under this system, postal ballots are sent electronicallyto registered service voters.
The service voter can then download the ETPB(along with a declaration form and covers), register their mandate on the ballot and send it to the returning officer of the constituency via ordinary mail.
The post will include an attested declaration form(after being signed by the voter in the presence of an appointed senior officer who will attest it).
The postal ballot must reach the returning officer by 8 a.m.on the day of the counting of results.
In the case of NRI voters, those seeking to vote through ETPBS will have to inform the returning officer at least five days after notification of the election.
Are postal ballots a viable means of voting?
The ETPBS method allowed for greater turnout among service voters in the 2019 Lok Sabha election.
With the increasing mobility of citizens across countries for reasons related to work, the postal ballot method has been internationally recognized.
A postal ballot mechanism that allows for proper authenticationof the ballot at designated consular/embassy offices and an effective postal system should ease this process for NRIs.
Back2Basics: NRI vs OCI
Non-Resident Indian (NRI)
To mention it, NRI is someone who is not a resident of India.
However, the law is much more complicated and must be delved deeper to gain an inclusive insight into the sector.
A person is considered a resident of India if he/she has been staying in India for a minimum tenure of 182 days during the previous financial year of a particular year. OR
A person living in India for a total of 365 days during the previous four financial years and a minimum of 60 days during the last financial years is considered a citizen for a particular year.
Now an NRI or a non-resident of India is eligible to pay charges for only the first two situations, which means either the income received or earned in India.
Therefore, the NRI status also influences the enjoyable rights of that person.
Overseas Citizen of India (OCI)
OCI is a card issued by the government of India that denotes that a non-resident or foreigner has been permitted to stay and work within Indian boundaries.
Hence, this card provides foreigners with an immigration status without any limited tenure.
There are cases where PIOs of specific categories are allowed for OCI cards that have migrated from India to foreign countries (except Pakistan and Bangladesh) if the other government agrees for dual citizenship.
An individual holding an OCI card can be an overseas citizen of India in layman’s language.
So an OCI is not a citizen of India, but the Indian government has given the cardholder permission to reside and work within the boundaries of India.
Residents migrating from Pakistan and Bangladesh are not eligible for holding the OCI card. Even if their parents are citizens of both countries, the applicants will be denied having an OCI card.
Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test
Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left
From UPSC perspective, the following things are important :
Prelims level: LTTD
Mains level: Desalination of seawater
The National Institute of Ocean Technology (NIOT) is making efforts to make its ongoing water provision project in Lakshadweep eco-friendly by eliminating emissions in its Low Temperature Thermal Desalination technology.
What is LTTD Technology?
LTTD Technology is a desalination process that uses low-grade thermal energy, typically below 70°C, to evaporate seawater and produce fresh water.
The technology is designed to be efficient and cost-effective, and it has been successfully used in various locations worldwide to provide potable water.
How does LTTD Technology work?
LTTD Technology works by using a low-grade thermal source, such as warm seawater, to heat up a chamber containing seawater.
As the seawater is heated, it evaporates and produces fresh water vapor.
The vapor is then condensed and collected, leaving behind concentrated seawater, which can be discharged back into the ocean.
The fresh water produced can be used for various purposes, such as drinking water, irrigation, or industrial applications.
Benefits of this technology
One of the main benefits of LTTD Technology is that it uses low-grade thermal energy, which is readily available in many locations, especially in coastal areas.
This makes it a cost-effective and sustainable way of producing fresh water.
Additionally, LTTD Technology is modular and can be easily scaled up or down, depending on the water demand.
It also has a relatively low environmental impact compared to other desalination technologies.
Challenges of LTTD Technology
One of the main challenges of LTTD Technology is that it requires a constant source of low-grade thermal energy, which can be affected by weather conditions and seasonal changes.
Additionally, the technology is relatively new and may require further research and development to optimize its efficiency and performance.
How is NIOT working to make LTTD Technology emission-free?
NIOT is working on making LTTD Technology emission-free by using renewable energy sources, such as solar energy, to power the desalination process.
The goal is to reduce the carbon footprint of the technology and make it more sustainable and environmentally friendly.
Try this MCQ:
Q. The LTTD technology involves the use of which of the following processes to produce potable water?
A) Reverse osmosis B) Distillation C) Filtration D) Chlorination
Post your answer here.
Are you an IAS Worthy Aspirant? Get a reality check with the All India Smash UPSC Scholarship Test
Get upto 100% Scholarship | 900 Registration till now | Only 100 Slots Left
