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  • [RSTV ARCHIVE] Ethanol Blending: Significance & Road Ahead

    The Central Government has resolved to meet the target of 20 percent ethanol blending in petrol by 2025. This will help India strengthen its energy security, enable local enterprises and farmers to participate in the energy economy and reduce vehicular emissions.

    In this article we shall discuss and analyze all aspects of this issue.

    What is Ethanol Blending?

    • An ethanol blend is defined as a blended motor fuel containing ethyl alcohol that is at least 99% pure, derived from agricultural products, and blended exclusively with petrol (gasoline).
    • Ethanol, anhydrous ethyl alcohol having a chemical formula of C2H5OH, can be produced from sugarcane, maize, wheat, etc. which are having high starch content.
    • In India, ethanol is mainly produced from sugarcane molasses by the fermentation process. Ethanol can be mixed with the gasoline to form different blends.
    • As the ethanol molecule contains oxygen, it allows the engine to more completely combust the fuel, resulting in fewer emissions and thereby reducing the occurrence of environmental pollution.
    • Since ethanol is produced from plants that harness the power of the sun, ethanol is also considered a renewable fuel.

    Ethanol Blended Petrol (EBP) Programme

    • Ethanol Blended Petrol (EBP) programme was launched in January, 2003 for supply of 5% ethanol blended Petrol.
    • The programme sought to promote the use of alternative and environment friendly fuels and to reduce import dependency for energy requirements.
    • OMCs are advised to continue according priority of ethanol from 1) sugarcane juice/sugar/sugar syrup, 2) B-heavy molasses 3) C-heavy molasses and 4) damaged food grains/other sources.
    • At present, this programme has been extended to whole of India except UTs of Andaman Nicobar and Lakshadweep islands with effect from 01st April, 2019 wherein OMCs sell petrol blended with ethanol up to 10%.

    Ethanol blending in India

    • Ethanol now is blended 10% to petrol, which started with 5% when the EBP was launched
    • Last year 173 crore liters of petrol was blended with ethanol.

    Why need 20% blending?

    Mixing 20 percent ethanol in petrol holds multiple attractions for India.

    • First, it can potentially reduce the auto fuel import bill by a yearly $4 billion, or Rs 30,000 crore.
    • Second, it also provides for farmers to earn extra income if they grow to produce that helps in ethanol production.
    • Third, and no less important, is the fact that ethanol is less polluting than other fuels and, per the NITI Aayog paper, “offers equivalent efficiency at a lower cost than petrol”.

    What is needed to meet the blending target?

    • Till 2014 an average of only 1.5 percent ethanol could be blended in India, that proportion has now reached about 8.5 percent.
    • So, while in 2013-14, about 38 crore liters of ethanol were purchased in the country, that figure now stands at more than 320 crore liters.
    • A majority of the ethanol units are concentrated in 4 to 5 states where sugar production is high but food grain-based distilleries are now being set up across India.
    • There have been efforts to make ethanol from agricultural waste.

    Response from automobile sector

    • All automobile materials produced after 2009 are compatible with 10% ethanol. However they are not compatible with E20 (20 percent ethanol blend with petrol).
    • The NITI Aayog paper said that two-wheelers and passenger vehicles that are now being made in the country “are designed optimally for E5 while rubber and plastic components are “compatible with E10 fuel”.
    • The industry body the Society of Indian Automobile Manufacturers (SIAM) has guaranteed that “once a road-map for making E10 and E20 available in the country is notified… they would gear up to supply compatible vehicles in line with the roadmap”.
    • All the components required can be made available in the country” and that “no significant change in the assembly line is expected”.

    Why is 20% blending a significant decision?

    • Ethanol blending will also, to a large extent, solve the problem of agricultural waste as well as sugar rates plummeting due to excess production, therefore providing security to sugarcane farmers.
    • It can help accomplish dual goal of strengthening energy security with low carbon emission.
    • It will enable local enterprises and farmers to participate in the energy economy.
    • Reducing import bill is another significant benefit. India imports 85% of crude oil.
    • Ethanol blending increases octane number thereby increasing fuel quality in terms of anti-knocking tendency (engine sound)

    Hurdles in implementation

    • In the previous fiscal, 87 per cent of ethanol used for India’s ethanol blending program was produced using sugar.
    • The price of ethanol production in India ranges from $0.63 – $0.87 a litre, significantly higher than the US and Brazil where it is about $ 0.61 per litre.
    • The procurement of ethanol by OMCs is governed by an administered pricing mechanism that fixes prices every year based on the raw material used.
    • This fixing of the price of raw materials for production had led to India producing ethanol at prices higher than other countries.
    • The report also highlighted the excessive use of water — estimated at 2,860 litres — for the production of one litre of ethanol from sugar.

    Hence there is a need to move to more environmentally sustainable crops.

    Way forward

    • For attaining E100 i.e. cent percent clean mobility, ambitious ethanol blending program is a must.
    • Emphasis should be laid on alternative of ethanol. Methanol with some modifications can also be used for blending.
    • Major source of producing ethanol is sugarcane which is a water intensive crop. Hence we need more sustainable sources to produce Ethanol.

    Source:

  • [RSTV ARCHIVE] Aspirational Model: Inspiration for the world

    The United Nations Development Programme (UNDP) has lauded the Centre’s Aspirational Districts Programme (ADP), saying that it should serve as a “best practice” for other countries where regional disparities in development status persist for many reasons.

    UNDP has termed ADP as the most successful model of the Local Area Development.

    Aspirational Districts Programme (ADP)

    • Launched in January 2018, the ‘Transformation of Aspirational Districts’ initiative aims to remove this heterogeneity through a mass movement to quickly and effectively transform these districts.
    • The broad contours of the program are Convergence (of Central & State Schemes), Collaboration (of Central, State level ‘Prabhari’ Officers & District Collectors), and Competition among districts driven by a spirit of mass Movement.
    • With States as the main drivers, this program will focus on the strength of each district, identify low-hanging fruits for immediate improvement, measure progress, and rank districts.

    Behind the name

    • Hon’ble PM has negated the idea of naming any scheme based on their backwardness.
    • Rather the name ‘Aspirational’ presents a more affirmative action-based execution of the scheme.

    Selection of districts

    • A total of 117 Aspirational districts have been identified by NITI Aayog based upon composite indicators.
    • The objective of the program is to monitor the real-time progress of aspirational districts based on 49 indicators (81 data points) from the 5 identified thematic areas.

    Weightage has been accorded to these districts as below:

    • Health & Nutrition (30%)
    • Education (30%)
    • Agriculture & Water Resources (20%)
    • Financial Inclusion & Skill Development (10%)
    • Basic Infrastructure (10%)

    Strategy of the ADP

    The core Strategy of the program may be summarized as follows.

    • Making development a mass movement in these districts
    • Identify low hanging fruits and the strength of each district, to act as a catalyst
    • for development.
    • Measure progress and rank districts to spur a sense of competition.
    • Districts shall aspire to become State’s best to Nation’s best.

    Features of the ADP

    • It has transformed into a Jan Andolan.
    • The ADP is different in trying to monitor the improvement of these districts through real-time data tracking.
    • The programme seeks to develop convergence between selected existing central and state government programmes.
    • District performance in the public domain and experience building of the district bureaucracy is another notable feature.
    • The programme is targeted, not towards any single group of beneficiaries, but rather towards the population of the district as a whole.

    What makes this program special?

    The program reflects what has become of the development project in India under neoliberalism, especially after the end of planning.

    • Long overdue sectors have been given more emphasis.
    • It is not a tailormade program with one-size-fit strategy. More onus has been laid on the districts. It has a district-intervention strategy.
    • It works on the principle of SWOT (strength, weakness, opportunity and threats) model and comparison with national best parameters for effective resource management.
    • It is the most reviewed programme by the Prime Minister.
    • A general idea behind the idea is that a good work never goes un-noticed. It is duly appreciated on social media as well as by the officials.
    • Through ADP, momentum in expediting growth is maintained as well so for the success of the program to be scaled and replicated in other districts which are still ranking low.
    • In principle, the programme does note the importance of quality of life and quality of services available.

    COVID and ADP

    • ADP had found elderly citizens as the mist vulnerable in this pandemic.
    • Programs such as Surakshit Dada-Dadi Nana-Nani were held and almost every elderly person was reached.
    • Omnicus Platform with a panel of experienced doctors for COVID and ‘India Fights Covid’ Platform are other such initiatives.

    Programmatic Strengths

    • A key strength of the ADP is the collection of baseline data and follow-ups at regular intervals.
    • Sustaining this effort would create a robust compilation of statistics for use by both researchers and policy-makers.
    • In doing this, the government also brings much-needed attention to human development and a willingness to meet the Sustainable Development Goals (SDGs).
    • Incremental progress being made in the chosen districts as reflected in the rankings.
    • The programme also claims to be “non-partisan and unbiased” and geared towards all-India growth.
    • The selection of districts indeed suggests that the programme has not favored any bias either regional, political or any other.
    • The programme seeks convergence of central and state schemes anchored around specific activities.

    Issues with the programme

    • The programmatic limitations of the ADP with respect to agricultural development or poverty eradication are clearly visible.
    • Using the case of Bihar, they argue that the programmes selection of districts itself is problematic.
    • In fact, it actually excludes the most backward districts because per capita income, the most basic measure of development, has not been considered.
    • There seems to be some ambiguity around the issue of whether the programme is concerned only with improved access or also with the quality of service provided.
    • The indicators used are not defined relationally, rather they are static human development indicators that do not see people mired in dynamic social relations.
    • Similarly, the programme envisages “development’ in these districts as taking place in isolation from wider development.
    • For instance, under skill development, the programme seeks to encourage industry-relevant training and apprenticeship of youth in an environment of jobless growth.
    • It is also accused that the state is not making any new or focused public investment (except for possible use of Flexi-funds) into these districts, on the other hand, it is moralizing about their inability to improve (through rankings). 
    • The programme is carrying the burden of proving the government’s “developmental” work without addressing any of the fundamental issues around achieving equitable development.
    • Yet, the NITI Aayog justifies the overall approach as capitalizing on “low-hanging fruit.”

    Way forward

    • The program has been able to make difference in the lives of citizens of India, in education, health, nutrition, financial inclusion, skill development and this has made a difference to some most backward and most geographically far-flung districts of the nation.
    • ADP is ‘aligned to the principle of “leave no one behind—the vital core of the SDGs. Political commitment at the highest level has resulted in the rapid success of the program the report said.
    • UNDP has recommended revising a few indicators that are slightly close to reaching their saturation or met by most districts like ‘electrification of households’ as an indicator of basic infrastructure.

    Conclusion

    • The resounding success of the ADP is a testament to the efforts of the national, state and district level administrations, at the head of which is the empowering vision of our PM.
    • The transformational growth story of these districts would not have been possible without the continuous support of knowledge and development partners as well as civil society organizations.
    • A programme of this scale has redefined the contours of India’s development narrative and will continue to garner many more accolades as it achieves one progressive milestone after another.
    • The challenge of improving the country’s human development is real and pressing, as is the need to refocus on the most marginalized districts.
  • [Burning Issue] Should sedition law be scrapped?

    Two orders given by India’s Supreme Court in two separate cases early this month have, once again, brought into sharp focus the issue of the colonial-era law relating to sedition in the context of media freedom. Both cases involve journalists and their reporting.

    One of the cases relates to the booking of two journalists of Telugu language news channels under Section 124A of the Indian Penal Code (IPC) for telecasting a speech by a dissident leader of Andhra Pradesh’s ruling YSR Congress Party. The other case pertains to an FIR filed against noted journalist Vinod Dua, who was accused of having made remarks against Prime Minister Narendra Modi and his government’s handling of the migrant labor crisis during the Covid-19 lockdown in 2020. In the hearings in both cases, the top court has made important observations that have a strong bearing on media freedom and the future of the sedition law.

    Background

    • Section 124A of the Indian Penal Code lays down the punishment for sedition. 
    • The Indian Penal Code was enacted in 1860, under the British Raj. The then British government in India feared that Muslim preachers on the Indian subcontinent would wage a war against the government. Particularly after the successful suppression of the Wahabi/Waliullah Movement by the British, the need was felt for such law. 
    • Throughout the Raj, this section was used to suppress activists in favor of national independence, including Lokmanya Tilak and Mahatma Gandhi, both of whom were found guilty and imprisoned.
    •  Sedition was made a cognizable offense for the first time in history in India during the tenure of Prime Minister Indira Gandhi in 1973, that is, arrest without a warrant was now permissible.
    • In 1962 the Supreme Court of India interpreted the section to apply only if there is, say, “incitement to violence” or “overthrowing a democratically elected government through violent means”.

    What is Sedition?

    • The Indian Penal Code (IPC) defines Sedition (Section 124A) as an offence committed when “any person by words, either spoken or written, or by signs, or by visible representation, or otherwise, brings or attempts to bring into hatred or contempt, or excites or attempts to excite disaffection towards the government established by law in India”.
    • Disaffection includes disloyalty and all feelings of enmity. 
    • However, comments without exciting or attempting to excite hatred, contempt or disaffection, will not constitute an offence.
    • Sedition is a non-bailable offence.
    • Punishment under Section 124A ranges from imprisonment up to three years to a life term with/without a fine.

    The debate around

    Arguments in favor

    • Section 124A is needed in combating anti-national, secessionist and terrorist elements.
    • It protects the elected government from attempts to be overthrown with violence and illegal means.
    • Many districts in different states are affected by Maoist insurgency and rebel groups virtually run a parallel administration. These groups openly advocate the overthrow of the state government by revolution. Hence the abolition of Section 124A would be ill-advised.

    Arguments against

    • Before Independence, this charge was used by the British to suppress the freedom movement.
    • Ironically, the same draconian law has become a tool that the country is now using against its own people.
    • During the colonial period section, 124-A was interpreted by the Privy Council in a way to suppress every act that expressed discontent against the govt.
    • Many freedom fighters were slapped with these charges for invoking feelings of nationalism and educating the people of India against the policies adopted by the colonial power.
    • Instead of critically analyzing why citizens, be they in Kashmir or Chhattisgarh or Bhima Koregaon, are driven to dissent, the government is using an iron-fist policy with the sedition law playing a leading role to completely shut out contrarian views.
    • Despite the clearly set out guidelines for applying the charge of sedition, lower courts have routinely failed to apply these parameters while considering sedition cases. There is a complete lack of percolation of settled judicial opinion to lower levels of the judiciary. Judiciary should address this systemic lapse.
    • Magistrates have the power to order a police investigation into cognizable offenses. And the Supreme Court has, in Lalita Kumari vs. Uttar Pradesh (2013), laid down that registration of an FIR is mandatory if information received by the police discloses a cognizable offense, However, in recent cases, it is unclear how the court or the police could conclude that the contents were seditious.

    Supreme Court judgments on it

    • In 1962, the Supreme Court decided on the constitutionality of Section 124A in Kedarnath Singh v State of Bihar.
    • It upheld the constitutionality of sedition, but limited its application to “acts involving intention or tendency to create disorder, or disturbance of law and order, or incitement to violence”.
    • It distinguished these from “very strong speech” or the use of “vigorous words” strongly critical of the government.
    • Maneka Gandhi case, 1978:
    • The Maneka Gandhi judgment was a balanced judgment and is one of the best judgments that Indian Supreme Court has ever given.
    • The judgment’s importance can be seen today also because the way in which the bench construed Article 21and expanded its horizons has given way for the resolving of problems left unsolved by the Parliament.
    • The SC stated that Criticizing and drawing general opinion against the Govt. policies and decisions within a reasonable limit that does not incite people to rebel is consistent with the freedom of speech.
    • In 1995, the Supreme Court, in Balwant Singh v State of Punjab, held that mere sloganeering which evoked no public response did not amount to sedition.

    Way Forward

    • The sedition law should not be abolished as some measurements are needed to check communal violence & insurgency activities like Naxals.
    • The court also needs to examine the classification of the offense of sedition as cognizable and non-bailable.
    • India is the largest democracy in the world and the right to free speech and expression is an essential ingredient of democracy.
    • Section 124A should not be misused as a tool to curb free speech. The SC caveat, given in the Kedar Nath case, on prosecution under the law can check its misuse.
    • The definition of sedition should be narrowed down, to include only the issues pertaining to the territorial integrity of India as well as the sovereignty of the country.
  • [Yojana Archive] One Nation-One Election

    May 2021

    Have you been hearing the words ‘simultaneous elections’ often these days? That’s because there is a proposal to conduct the elections to the Lok Sabha and a State assemblies at the same time.

    What are simultaneous polls?

    • Currently, elections to the state assemblies and the Lok Sabha are held separately — that is whenever the incumbent government’s five-year term ends or whenever it is dissolved due to various reasons.
    • This applies to both the state legislatures and the Lok Sabha. The terms of Legislative Assemblies and the Lok Sabha may not synchronize with one another.
    • For instance, Rajasthan faced elections in late 2018, whereas Tamil Nadu will go to elections only in 2021.
    • But the idea of “One Nation, One Election” envisages a system where elections to all states and the Lok Sabha will have to be held simultaneously.

    Simultaneous polls in India

    • India had concurrent elections for the first two decades.
    • Starting from the first general elections of free India in 1951 and the next three cycles of elections, the country witnessed concurrent Lok Sabha and Assembly elections.
    • Exceptions to these were a few states like Kerala where a mid-term election was held in 1960 on the premature dissolution of the Assembly.
    • In Nagaland and Pondicherry where the Legislative Assembly was created only after the 1962 general elections.

    End of the era

    • The fourth Lok Sabha constituted in 1967 was dissolved prematurely in 1971 ahead of its normal term resulting in a mid-term Lok Sabha election.
    • This was the beginning of the end of simultaneous elections in India.
    • Extension of the term of Lok Sabha during the National Emergency declared in 1975 and the dissolution of Assemblies of some States after the 1977 Lok Sabha election further disturbed this cycle.
    • Currently, there are at least two rounds of Assembly general elections every year.

    Making simultaneous elections a reality

    • Sections 14 and 15 of the Representation of the People Act, 1951, empower the Election Commission to notify elections any time during the last six months of the term of the House and not earlier than that.
    • Therefore, if the terms of the Houses are expiring within a window of three to four months, it would be legally possible to hold elections simultaneously to constitute the new Houses.
    • In other words, to contemplate simultaneous elections, we need, as a starting point, a situation where the Lok Sabha and the Legislative Assemblies of all States and UTs have their terms ending together.

    Synchronizing the terms of the Houses

    • Both the Lok Sabha and Legislative Assemblies (ordinarily) have a term of five years.
    • Article 83 of the Constitution provides for the tenure of Lok Sabha. Identical provisions are present in Article 172(1) regarding the term of the Legislative Assemblies.

    There is no duplication of work in preparing the electoral rolls for the two elections and hence no extra labor or expenditure is involved on this count.

    What is required?

    • This necessarily calls for either extending the terms of several of the Houses or curtailing of terms or a combination of both, that too by two to three years in some cases.
    • For enabling such curtailing or extension of the term, the relevant Articles of the Constitution mentioned above will have to be suitably amended.

    Why Simultaneous Elections?

    Two seemingly relevant factors in favor of simultaneous elections as opposed to separate elections are:

    1. Effort saving: Simultaneous elections reduce labour, time and expenditure in the conduct of elections; and
    2. Instances of pause in governance are addressed if elections are conducted in one go instead of staggered elections.

    [1] How is effort saving possible?

    • Electoral roll: Polling stations for Lok Sabha and Legislative Assembly elections are the same. So is the electoral roll.
    • Labour: There is no duplication of work in preparing the electoral rolls for the two elections and hence no extra labour or expenditure is involved on this count.
    • Logistics: In the conduct of elections, all logistic arrangements are replicated for the two elections when the same drill can cater to both the elections if held together.
    • Security: This will also mean saving in terms of human resources. Another area of saving in simultaneous elections would be in the deployment of the Central Police Force.

    [2] Governance pause can be avoided

    • Instances of pause in governance is due to the Model Code of Conduct (MCC).
    • MCC is a set of behavior guidelines for candidates and political parties that comes into operation from the date election is announced by the Election Commission.
    • A crucial part of the MCC is the restrictions on the party in power.  If all elections are held together, the restrictions under MCC will be through in one go.

    [3] Help reduce campaign expenses

    • Simultaneous elections can bring considerable savings in the election propaganda campaign expenditure for the political parties.
    • Given that political funding is a major factor in the increasing menace of corruption, the move to reduce campaign expenditure is a welcome initiative.

    [4] Voter turnout

    • A nationwide election could push up the voter turnout since a once-in-five-years event is bound to attract more enthusiastic participation across all sections.
    • Frequent elections can bring in the election-fatigue factor at least among some sections of electors.
    • The simultaneous elections help address the fatigue element and the usually observed urban apathy in voting. Better electors’ participation will further add to the credibility of the election.

    Exceptions to this debate: Local Bodies’ Elections

    • The local bodies’ elections have not been considered for the analysis here.
    • This is for the reason that the elections to local bodies cannot be clubbed with the proposed simultaneous elections for the Lok Sabha.

    Why?

    • The elections to local bodies are conducted under the superintendence, direction, and control of a different constitutional authority, namely, the respective State Election Commission.
    • Holding local bodies’ elections along with the other elections will require the team of the same polling officials to report to and take instructions from two different authorities simultaneously.
    • There is a distinct set of polling stations too for local bodies’ elections.
    • Further, the litigation forum before which these elections can be challenged is different.

    Challenges in ensuring simultaneous elections in India:

    [1] Synchronizing the Houses

    • Bringing the terms of all the Houses to sync with one another necessarily calls for either extending the terms of several of the Houses or curtailing of terms or a combination of both.
    • This may be by two to three years in some cases.
    • For this, relevant Articles of the Constitution will have to be suitably amended.

    [2] Midterm dissolution cannot be controlled

    • Even if the terms of the Houses are in sync as a one-time measure, we will still need an adequate legal safeguard in place to avoid mid-term dissolution and protect the simultaneous elections cycle.
    • This can be a tough task in conventionally fragile states with smaller assemblies with coalitions.

    [3] EVM related expenses

    • One aspect that could offset the savings would be the doubling of expenses on electronic voting machines (EVMs).
    • Considering that the incidental recurring expense in the storage and security of the EVMs will also be a considerable amount.
    • The overall expenditure in holding elections may not see any substantial dip on account of simultaneous elections.

    Arguments against the idea

    • National and state issues are different, and holding simultaneous elections is likely to affect the judgment of voters.
    • Since elections will be held once in five years, it will reduce the government’s accountability to the people. Repeated elections keep legislators on their toes and increases accountability.
    • When an election in a State is postponed until the synchronized phase, President’s rule will have to be imposed in the interim period in that state.
    • This will be a blow to democracy and federalism.

    Way forward

    • We need an adequate legal safeguarding place to avoid mid-term dissolution and protect the simultaneous elections cycle.
    • For maintaining the electoral cycle, some countries have legal provisions to the effect that for a ‘no-confidence motion’.
    • Their proposed resolution also contains a constructive ‘vote of confidence in an alternative government to continue with the tenure.
  • [RSTV Archive] PMGKAY- Shielding the vulnerable in crisis

    In a major relief to the poor amid the devastating COVID-19 pandemic, PM has announced that the government has extended the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) to distribute wheat and rice-free of cost to around 80 crore people till November this year.

    Background

    • After the outbreak of the COVID-19 pandemic last year in March, the PMGKAY scheme was launched to support the vulnerable sections of society. It was implemented during April to November 2020.
    • In this edition we shall understand more about the scheme and how beneficial will it be for the vulnerable population amid the pandemic.

    What is PMGKAY?

    • PMGKAY is a food security welfare scheme announced by the GoI in March 2020, during the COVID-19 pandemic in India.
    • The program is operated by the Department of Food and Public Distribution under the Ministry of Consumer Affairs, Food and Public Distribution.
    • The scale of this welfare scheme makes it the largest food security program in the world.0

    Major provisions

    • The scheme aims to feed the poorest citizens of India by providing grain through the Public Distribution System, to all the priority households (ration card holders and those identified by the Antyodaya Anna Yojana).
    • It provides 5 kg of rice or wheat (according to regional dietary preferences) per person and 1 kg of dal to each family holding a ration card.

    Why was such a scheme needed?

    The devastation by this pandemic has increased manifold in the second wave resulting into localized restrictions and lockdowns from the States.

    • This has resulted in massive jobs losses in urban areas since the largest employers being construction and hospitality sectors have been completely shut down.
    • The virus has penetrated deeper in the countryside in rural areas halting almost every sources of livelihood.
    • These areas are such where 60% of the income was earned from non-pharm activities. This resulted in livelihood losses of large section of population.

    Success of the scheme

    • It was the first step by the government when pandemic affected India.
    • The scheme reached its targeted population feeding almost 80Cr people.
    • It has proven to be more of a safety net to migrant people who had job and livelihood losses.
    • This has also ensured nutrition security to children of the migrant workers.

    Failures

    • The scheme has been affected by widespread corruption, leakages and failure to distribute grain to the intended recipients.
    • Several of the states above have claimed that the ineffective distribution has been caused by the beneficiaries, especially migrant workers, not being available to receive their rations.
    • Out of the 79.25 crore beneficiaries under the National Food Security Act (NFSA), only 55 crore have so far received their 5 kg.
    • However, almost 90% of beneficiaries have received their regular subsidized grain for the month, raising questions over why the free grain has reached fewer beneficiaries.
    • Many people were denied their share due to inability to access ration cards.
    • Livelihood losses led to decline in aggregate demand and resulted into lowest ever consumption expenditure by the people owing to scarcity of cash.
    • This in turn led to selling of the free grains obtained in the local markets for cash.

    Way forward: Making it a roaring success

    • There should be a all-encompassing database for migrant workers and their family. This should accurately capture the data on migration.
    • The One Nation One Ration Card should be implemented in true spirit by all the states.
    • Along with food security, there should be a sustainable income support through schemes like MGNREGS accompanied by free vaccines in nearest future.
    • The leakages in PDS should be minimized through modernize PDS. To avoid leakages, there should be food-token system.

    Conclusion

    Implementation has been a historical problem in our country with any of the schemes which is meant particularly for poor.


    Source:

  • [Burning Issue] Rise of DarkNet/Darkweb

    Context

    The dark web refers to websites on the darknet, a network built over the internet which provides added anonymity. Many users surf the dark web due to its greater privacy levels compared to the regular internet, AKA the ‘clear web’. It can also, however, offer a platform to criminals looking to trade illegal goods and orchestrate darknet scams.

    Introduction

    • A darknet or darknet is an overlay network within the Internet that can only be accessed with specific software, configurations, or authorization, and often uses a unique customized communication protocol.
    • Dark Web is the virtual equivalent of a black market. Like Silk Road that marketed illegal drugs through the Dark Web, entities that want to operate out of the arms of the law seek refuge in the Dark Web.
    • The darknet, also known as the “dark web,” is a component of the greater “deep web,” a network of encrypted Internet content that is not accessible via traditional search engines.
    • The darknet is most often used for illegal activities such as black markets, illegal file sharing, and the exchanging of illegal goods or services (including stolen financial and private data), and the anonymity of the darknet attracts drug dealers, hackers, and child pornography peddlers.
    • Darknet markets have been instrumental in the development of cryptocurrencies because transactions completed on darknet markets using cryptocurrency protect both the buyer and seller.

    Darknet Vs Darkweb

    • The terms “darknet” and “deep web” are occasionally used interchangeably. However, this is not correct.
    • The darknet is part of the greater deep web. The deep web encompasses all unindexed sites that don’t pop up when you do an Internet search.
    • Not all activities associated with the deep web are nefarious. In most cases, these pages are not searchable through traditional channels.
    • The darknet is part of the deep web, but it refers to websites that are specifically used for nefarious reasons. Darknet sites are purposefully hidden from the surface net by additional means. 

    How it works

    • One of the most common ways that darknet websites are separated out from the surface net is through encryption. Most darknet websites use the Tor encryption tool to help hide their identity.
    • Tor allows individuals to hide their location, appearing as if they are in a different country. 
    • When individuals use Tor, their IP addresses and other identifying information are similarly encrypted.
    • It is not difficult for an individual to access the darknet as long as they have the proper encryption tools. 
    • The Tor encryption tool uses many layers of encryption and anonymizes all traffic by routing it through a dense network of secure relays. 
    • Tor software is not illegal but the way that it is used can be illegal. Tor is not always used to access darknet services.

    Advantages

    • Express views: The dark web helps people to maintain privacy and freely express their views. Privacy is essential for many innocent people terrorized by stalkers and other criminals. 
    • Facilitate whistleblowing :The dark net can facilitate whistleblowing and news leaks, act as a tool to allow individuals to circumvent censorship networks, and can be used as a means of protecting political dissidents from reprisal.
    • Journalists seeking to interview citizens of repressive countries where communications are monitored might use the dark net. 
    • Undercover activities: The popularity of the dark web with criminals makes it a perfect way for undercover police officers to communicate.

    Disadvantages

    • Computer crime (cracking, file corruption, etc.)
    • File sharing (warez, personal files, pornography, confidential files, illegal or counterfeit software, etc.)
    • Sale of restricted goods on darknet markets
    • Purchase or sale of illicit or illegal goods or services
    • Circumventing network censorship and content-filtering systems, or bypassing restrictive firewall policies.
    • While the dark web promises privacy to its users, it can also be used to violate the privacy of others. Private photos, medical records, and financial information have all been stolen and shared on the dark web.

    Need of a data protection law

    Data protection is a must in the age of digital era. The law should encompass all the aspects- data collection, processing and sharing practices in an integrated manner. The Kerala Police has set up a ‘state-of-the-art lab’ to intervene and crack down on the rising criminal activities over the Darknet, also known as the underworld of the Internet. The state must prevent and investigate digital crimes, prevent misuse of data and encourage data security through legislation.

    • Data theft protection: Unlike the data protection regulations in place in the European Union and in the U.S., India still lacks a comprehensive legal framework to protect data privacy. Considering the manner in which public data are being stored and used by both the state and private entities, data of individuals is at high risk for being misused in Darknet. For efficient management of data in the age of digitisation, a data protection law is needed.
    • Right to privacy: The Supreme Court (SC) in Justice K.S Puttaswamy vs Union of India case, declared that the right to privacy is an inherent part of the fundamental right under Article 21 of the constitution. Thus, it is the duty of the state to safeguard individual’s privacy through legislation.
    • Rising cyber-crime: Public data leaks have been quite common in India from government websites enabling the download of Aadhaar numbers to electoral data rolls being downloaded in bulk, among others. Due to increased digitisation and increased digital complexities, data protection is needed for the hour. Recent rise of crimes like WhatsApp, Pegasus scam demands a data protection law in place.
    • Regulating companies: Large amounts of personal data have been collected by state agencies and private companies and their flow across national boundaries has been a cause for concern. There are many instances that the state and private agencies that are using the personal data are not transparent on the purpose for which the data is being used. To curtail the perils of unregulated and arbitrary use of personal data a legislation must be in place.
    • Digital India: With a billion population, India has the second highest internet user base in the world. India has 450 million internet users and is expected to increase to 730 million by 2020. With emphasis on digital India, the government must ensure the safety of citizen’s data.

    Darknet and India

    • The Centre has directed all law enforcement agencies to have eye over foreign-based content providers of data and metadata and to make legislative changes to provide immunity for cyber hackers, which law enforcement agencies use to counter Dark web transactions.
    • In India, the Information Technology Act deals with cybercrime and comes under the Ministry of Electronics and Information Technology. There are only six sections in the law that deal with cybercrime.
    • Centre for Development of Advanced Computing is working with CSIR on developing a darknet telescope base cyber security monitoring and interference framework.  This will help law enforcement agencies track cyber criminals who are selling illegal products and services on such platforms and also track terrorism relate communications and activities.

    Way Forward

    Since the dark web serves as both a hotbed for illegal activity and a platform for users to anonymously voice their thoughts freely, there is demand for its continued existence. In the future, the dark web community will develop advanced tactics to evade detection by the authorities. To minimize the illegal activities on darknet following steps must be taken:-

    • Nodal agency: As cryptocurrency becomes more mainstream, it will increasingly be used to facilitate dark web transactions. To stop or minimize this a nodal agency must be set up so as to keep a check on crypto transactions used for nefarious activities.
    • Cybercrime units around the world must be kept updated with advancements in the darknet society thereby giving them enough power to handle and tackle any illegal activity across the darknet. There must be international cooperation to deal with the issue.
    • Kerala Police Department’s initiative, Cyberdome, a premier facility dedicated to prevent cybercrime and mitigate cybersecurity threats to the State’s critical information infrastructure, is a step in the right direction which other concerned authorities across the nation can learn from.
  • [RSTV Archive] Multilateral Institutions – Need for reforms

    Context

    • Recently BRICS Foreign Ministers summit was organized.
    • During the conclusion, they acknowledged that the current international challenges should be addressed through reinvigorated and reformed multilateral systems.

    Multilateralism: The spirit of global governance/cooperation

    • In international relations, multilateralism refers to an alliance of multiple countries pursuing a common goal.
    • Multilateralism, in the form of membership in international institutions, serves to bind powerful nations, discourage unilateralism and give small powers a voice and influence that they could not otherwise exercise.
    • Similarly, multilateralism may allow one great power to influence another great power.
    • For a great power to seek control through bilateral ties could be costly; it may require bargaining and compromise with the other great power.

    What are Multilateral Organizations?

    • These are organizations formed between three or more nations to work on issues that relate to all of the countries in the organization.
    • They include the UN, and other institutions such as IMF, World Bank, WTO, and WHO.
    • These institutions are the major reflective of a larger power reality in the international structure.

    Failure of multilateralism

    • Across the system, multilateralism is severely eroding as nations become more inward-focused, directing their attention and strategies towards improving domestic capacities and reducing dependence on foreign imports.
    • Protectionist tendencies are on the rise in addition to the pressures of constrained mobility and fear of a reduction in financial resources essential for tackling climate change and achieving SDGs.
    • It seems that a tussle between unilateralism and multilateralism is going to shape much of the discourse on international cooperation.

    Why are they under question?

    • The COVID-19 pandemic is changing the nature of international cooperation and bringing out the inherent fault lines and weaknesses embedded in global institutions to sharp focus.
    • The western, or so-called ‘Atlantic system’, comprising of the USA and developed European countries ostensibly considered champions of multilateralism has failed to cope with the pandemic.
    • They have failed to provide any meaningful leadership during this unprecedented crisis.

    Recent shocks to multilateralism

    (1) Trade disputes

    • Most state-state disputes are handled by the WTO system, the primary body governing international trade.
    • Since last year, we have seen many times WTO panel ruling against India in a trade dispute over its subsidies to exporters under various schemes.
    • The US still has veto power over an array of major decisions in the World Bank.

    (2) Lack of transparency

    • Multilateral organizations were more intergovernmental during their inception. These institutions were undoubtedly western dominated.
    • The lack of transparency of the WHO and its handling of the covid pandemic has exposed the limitations of global cooperation.

    (3) Losing consensus

    • Major institutions are functioning in stagnancy since no new agreement has been reached in decades.
    • Be it WTO for its Agreement on Agriculture or the UNFCCC for the climate change negotiations for phasing out fossil fuels.

    (4) Rise of regional superpowers

    • The rise of China and is strategic might has been a bone of contention for the global community due to its clear defiance of the rule based global community over South China Sea.
    • The proxy trade wars between the US and China as well as the India and China are reaching new lows.

    (5) Rise of Mini-laterals

    • The contemporary global problems are sought to be better solved at the regional rather than the bilateral or global level.
    • This has led to the decline in global cooperation over range of issues. For example, RCEP to counterbalance the US dominated Trans-Pacific Partnership.
    • These are called issue-based coalitions.

    (6) Security challenges

    • There is inherent irony over the expansion of the membership global security blocs as such NATO, UNSC etc.
    • For example, Africa where most of the UN Peacekeeping forces operate, has no permanent member in the UNSC.
    • The UNSC veto powers possessed by permanent members are used as an instrument to shore up their geopolitical interests.

    Way forward

    • Multilateralism should promote international law, democracy, equity and justice, mutual respect, right to development and non-interference in internal affairs of any country without double standards.

    Reforming the multilateral system should encompass the following steps:

    • It should make instruments of global governance more inclusive, representative, and participatory to facilitate greater and more meaningful participation of developing and least developed countries.
    • It should be based on inclusive consultation and collaboration for the benefit of all, while respecting sovereign independence, equality, mutual legitimate interests and concerns.
    • It should strengthen the capacities of individual states and international organizations to better respond to new and emerging, traditional and non-traditional challenges.

    Indian approach to multilateralism: NORMS

    • NORMS stands for New Orientation for a Reformed Multilateral System.
    • India will work constructively with partners to bring innovative and inclusive solutions to foster development and for greater involvement of women and youth to shape a new paradigm.
    • A first and vital step is the reform of the United Nations Security Council. It must reflect contemporary realities to be more effective.

    Conclusion

    • There is no easy way out for immediate consensus-building among nations over the limitations of these multilateral institutions.
    • For this, non-alignment or ad-hoc coalitions could never be the answer.
    • Issues-based coalitions are the best answer and Health is the easiest framework to work upon.
    • Lastly, there are many mini-laterals that should unite for a global commonality.

    Source:

    RSTV: The Big Picture : Multilateral Institutions – Need for reforms

  • How to prepare Polity for IAS Prelims?| Fill up Samanvaya for a free 1-1 mentorship session

    Click here to fill the Samanvaya form for 1-1 mentorship. We will call you within 24 hours. (Also provided at the bottom of the article)


    It’s been said, tried and tested multiple times that reading Laxmikant is inevitable for UPSC prep. In Fact we must use this book as the pretext for our preparation for Polity.

    We are not going to support or advocate any new source to read Polity. Instead, we are going to tell you the SMARTER way of preparing for Prelims from Laxmikant itself.

    Lets see how, read through the Year Wise breakup of questions asked from Polity

    YearNumber of questions
    201411
    201513
    20167
    201719
    201813
    201912
    202017
    2021Any guesses?

     With the evolving numbers and inherent uncertainty above, we need to read between the lines and get an idea of the developing trend and pattern where the importance of Laxmikant cannot be ignored.

    On an average UPSC has been asking 15-20 Questions each year from the polity section since 2011.

    Most of the questions are being asked from a single source which is M Laxmikanth. Lately, a mix of current affairs-based questions has been introduced with associated static knowledge.

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    How to start reading Laxmikanth?

    Never devote equal importance or time to all sections of Laxmikant as that would turn out to be draining you (Mentally and Physically) at the end with no real outcome. With this extra hard work strategy, you may or may not solve all the polity questions in prelims.

    The second strategy is the Hard-work + Smart strategy where even though you will read each and every chapter of Laxmikant but you will give special focus to certain important chapters and information which will help you to solve each and every question of polity in UPSC prelims. We call them “Meaty Areas”. And most importantly, always try to learn chapters from Laxmikant with one or two live examples. There are a sufficient number of them around us.

    Some general observations about the book

    • It has been written in such a way that you do not need to make any notes out of it
    • It is one of the best compilation of various useful resources contained in the constitution
    • Its language is simple and easy to understand
    • It is way more to easy to comprehend than say, a book like Constitution of India by D .D. Basu

    Macro-level suggestions on how we should read from Laxmikant book

    #1. Start chronologically with Chapter 1 itself.

    Remember the Union and its territories, recent LBA with Bangladesh. Go slowly, reading each and every line (each and every line of this book ought to be read)

    #2. Prelims examination not only requires conceptual clarity but also the applied part of it.

    The conceptual clarity helps to solve the analytical question asked from this section. (Prelims 2017, 2019 & 2020 was heavily loaded with conceptual questions from Polity).

    Example:

    1) Consider the following statements:

    The Constitution of India defines its ‘basic structure’ in terms of federalism, secularism, fundamental rights and democracy.

    The Constitution of India provides for ‘judicial review’ to safeguard the citizens’ liberties and to preserve the ideals on which the Constitution is based.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

    2) Consider the following statements:

    According to the Constitution of India, a person who is eligible to vote can be made a minister in a State for six months even if he/she is not a member of the Legislature of that State.

    According to the Representation of People Act, 1951, a person convicted of a criminal offence and sentenced to imprisonment for five years is permanently disqualified from contesting an election even after his release from prison.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

    You might be wondering how this is applicable to the current scenario? These questions appear to be directly coming from Laxmikant and that is even true but unlike earlier, they require a lot of conceptual clarity to answer them. Even seasoned aspirants have ended up marking them incorrectly. The interplay of phrases like “India defines” and “India provides” has made many confused.

    According to the earlier trends, it was easy to attempt a maximum number of questions from polity because generally questions from this section were direct and based on factual information. But, now the nature of questions has changed.

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    #3. Along with factual information, one should cover the current political developments.

    Link the “Current Affairs” with “Associated Static”. This eases the pressure on the aspirant and also helps build confidence.

    Example:

    Q.) With reference to the Parliament of India, consider the following statements

    1. A private member’s bill is a bill presented by a Member of Parliament who is not elected but only nominated by the President of India.
    2. Recently, a private member’s bill has been passed in the Parliament of India for the first time in its history.

    Which of the statements given above is/are correct?

    UPSC, nowadays does not ask direct current affairs, it asks about background knowledge of any matter/issue.

    Correlating things: the bookish knowledge and the practical happenings- is the real essence of preparing for UPSC civil services exam. Try to locate whatever you learned from Laxmikanth book in the day-to-day happenings, history, hypothetical situations, etc.

    You may watch Lok Sabha proceedings and can tally whatever you learned from the book. You might read an article in a newspaper about change in name of a state, and revise the procedure for the same from the book. This will make learning interesting.

    #4. Most importantly, analyze previous year’s question papers. See what type of question is asked and how they are asked.

    Practicing previous year questions will help you to find out the areas where you commit mistakes.

    Micro-level suggestions on how you should read the book

    Section one: Historical background

    What is most important here?

    Committees of the Constituent Assembly

    What is moderately important?

    Composition of the Constituent Assembly

    Rest can be ignored or given a mild read.

    Section two: Fundamental Rights, Duties, DPSP, Preamble (Very very important)

    General Comments

    UPSC asks 5-6 Questions every year from this section. In UPSC 2020 most of the polity Questions were asked from this section. You have to read this section multiple times.

    Specific Suggestions

    • Salient features of the Indian Constitution (Moderately important. The topics mentioned in this chapters are covered extensively in later chapters)
    • Preamble to the Constitution (Very very important) UPSC simply loves Preamble. It has asked questions on the preamble in 2015 and this year also. Read carefully about different words mentioned in the preamble (example fraternity) and what do they exactly mean.
    • Union and its territory (Moderately important). Aspirants should be aware of the process through which states are created and also they should be aware of the sequence of new states creation).
    • Fundamental rights, DPSP and Fundamental duties (Very very important) FR, FD, DPSP etc are difficult as they have laws and bylaws.
    • Some are explicit while others are implicit. It is thus important to get the concept and soul of them. UPSC won’t ask petty details or facts. It will exploit the conceptual part.
    • You should be able to connect dots with recent happenings. For example, in 2017 UPSC asked a question related to privileges after use of red beacons was abolished by the government for ministers/officers.
    • Amendment of the constitution (Read carefully about different types of majorities and which majority is used in which case for example in which cases two-third majority is required and in which cases simple majority is required.)
    • Read very carefully about basic terms of polity like Cabinet form of Government, Judicial review, President System, Prime Minister System, Federalism, First past the post system, Proportional representation, rights and duties etc.

    In the last few years UPSC has been asking lots of questions to test the conceptual clarity of the aspirant.

    Section three: Similar topics

    Union and state Executive / Centre and State Relations

    Given the nature of evolving polity in India and ever powerful state govts, the conceptual clarity with respect to the Centre and State relations and constitutional bodies / protocols have ( PM Modi rebuking CM Kejriwal for airing the live meeting).

    Almost 90%  of powers and functions of President and Governor are the same. With respect to Delhi the introduction of the recent GNCT Act, with more power to the office of Lt Governor of Delhi is another aspect of development, important for both Prelims and Mains.

    If you cover topics which are similar like President and governor, Prime Minister and Chief Minister, Parliament and state legislature, supreme court and high court together it will save your time and will be easy to memorize and link them. Smart work!

    How President and Vice President are elected and removed

    Read very carefully the Comparison table of powers of Governor and President mentioned in the Governor Chapter in Laxmikanth.

    Always read trivial information very carefully, you can also make notes of the titbits information mentioned in any chapter since UPSC loves to ask trivia based questions, for example, the President can pardon a death convict, however, the Governor cannot.

    Parliament and state legislature

    Every year 1-3 questions are asked from it in prelims.

     What is most important in this chapter?

    • Read both chapters simultaneously. Look for differences between the powers of parliament and state legislature example privilege power of parliament is much wider than state legislature. (Very important)
    • Different committees and its composition and various kinds of motions and resolutions.
    • Different types of bills
    • Different types of discussions
    • Powers of speakers,deputy speakers,Chairman and Vice Chairman.
    • Comparison between powers of Lok Sabha and Rajya Sabha and Rajya Sabha and legislative council.
    • Budget.

    Supreme court and High court

    What is most important here?

    • Comparison between writ powers of High court and Supreme court. Master of Roaster, Conflict of interest, Corona crisis, you name it and Courts are into it. Especially use of art 142 by SC also needs to be inspected carefully.
    • Appointment and removal process of SC and HC judges(There is some trivial differences in that process)
    • Original powers of SC and HC

    Section 4:  Constitutional/statutory and Executive bodies

    What should you read very carefully?

    • Whether the body is constitutional, statutory or executive. Example SC/ST commission is constitutional body but backward commission and women commission are Statutory Bodies.
    • Who appoints the chairman and member of the commission and how they are removed.
    • Focus on trivial issues
    • Usually, except for appointment and removal, most of the functions and details of Central commissions and state commissions are similar.

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     Section 5: Special status of different states and union territories

    What should you read very carefully?

    • Read carefully the role of Governor and president in these states as already emphasised.
    • Read carefully the powers of L.G. and president in union territories. President has some extraordinary power in some union territories.

    Section 6: Local Bodies

    These third tier of Govts are not considered the most important pillars of basic governance and their empowerment is must going forward. Aspirants need to devote a decent amount of time understanding the constitutional mandates and powers of Panchayati raj and Municipality.

    14th and 15th Finance Commissions and their views of local governance and their development needs a mention here. There are now direct allocations to local bodies from Consolidated fund of India suggested by these Finance Commissions.

    Read carefully different committees of Panchayati raj.

    Regarding powers and functions of local bodies read carefully about which clause is mandatory (mandated by 73rd and 74th amendment) and which is optional (depends on whims and fancies of state government).

    Example SC/ST reservation in local bodies is mentioned in 73rd and 74th amendment but OBC reservation is optional.

    Section 7: Miscellaneous items

    This will include remaining topics:

    • In this most important chapters are anti-defection law, the official language, political parties and elections.
    • The anti-defection chapter closely read about differences in the 52nd amendment and 85th amendment (it is bit tricky).
    • In the political party chapter extensively read about criteria for granting any political party national or regional status.

    Rest of the chapters should be read but they are not very important from an exam perspective.

     

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  • [Burning Issue] India and NATO

    When the North Atlantic Treaty Organization (NATO) leaders meet later this year, they will debate the recommendations from a group of experts that advocates, among other things, extending a formal offer of partnership to India.

    Such an idea has been discussed before but has always delayed on India’s aversion to entanglement in rival geopolitical blocs.

    NATO: A backgrounder

    NATO was found in the aftermath of the Second World War. Its purpose was to secure peace in Europe, to promote cooperation among its members and to guard their freedom – all of this in the context of countering the threat posed at the time by the Soviet Union.

    • NATO is a military alliance established by the North Atlantic Treaty (also called the Washington Treaty) of April 4, 1949.
    • It sought to create a counterweight to Soviet armies stationed in Central and Eastern Europe after World War II.
    • Its original members were Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom, and the United States.
    • NATO has spread a web of partners, namely Egypt, Israel, Sweden, Austria, Switzerland and Finland.

    Why was it founded?

    Communist sweep in Europe post-WWII and rise of Soviet dominance

    • After World War II in 1945, Western Europe was economically exhausted and militarily weak, and newly powerful communist parties had arisen in France and Italy.
    • By contrast, the Soviet Union had emerged from the war with its armies dominating all the states of central and Eastern Europe.
    • By 1948 communists under Moscow’s sponsorship had consolidated their control of the governments of those countries and suppressed all non-communist political activity.
    • What became known as the Iron Curtain, a term popularized by Winston Churchill, had descended over central and Eastern Europe.

    And the US (the torchbearer of individual liberty and the master of democracy) had to enter (for no reasons) …

    In 1948 the United States launched the Marshall Plan.

    • It infused massive amounts of economic aid to the countries of western and southern Europe on the condition that they cooperate with each other and engage in joint planning to hasten their mutual recovery.
    • As for military recovery, under the Brussels Treaty of 1948, the UK, France, and the Low Countries—Belgium, the Netherlands, and Luxembourg—concluded a collective-defense agreement called the Western European Union.
    • It was soon recognized, however, that a more formidable alliance would be required to provide an adequate military counterweight to the Soviets.

    Ideology of NATO

    • The NATO ensures that the security of its European member countries is inseparably linked to that of its North American member countries.
    • It commits the Allies to democracy, individual liberty and the rule of law, as well as to peaceful resolution of disputes.
    • It also provides a unique forum for dialogue and cooperation across the Atlantic.

    The Article 5

    The heart of NATO is expressed in Article 5 of the North Atlantic Treaty, in which the signatory members agree that an armed attack against one or more of them in Europe or North America shall be considered an attack against them all.

    NATO invoked Article 5 for the first time in 2001, after the September 11 attacks organized by exiled Saudi Arabian millionaire Osama bin Laden destroyed the World Trade Center in New York City and part of the Pentagon outside Washington, D.C., killing some 3,000 people.

    NATO and its present relevance: China on radar

    The end of the Cold War precipitated NATO’s identity crisis. With the US at the centrestage, the organization pivoted away from its longtime focus on collective defence against Moscow.

    • In December 2019, US made it clear that China is now on NATO’s radar screen.
    • Following continuous pressure by the Trump administration, the alliance agreed in April 2019 to initiate a study of China’s more assertive role on the international stage.
    • This culminated in NATO formally acknowledging, in its December 2019 summit declaration about China’s growing influence and international policies present both opportunities and challenges.

    Why NATO should focus on China?

    China presents a novel and complex challenge for NATO and it cannot rush into a confrontation. Four important considerations dominate NATO’s approach.

    (1) China is not the Soviet Union

    • Beijing has far greater economic clout; modern Chinese citizens, unlike their earlier Soviet (and Chinese) counterparts, now live in a more market-oriented society.
    • The US and Chinese economies are intertwined in a way that differ markedly from the US and Soviet experience in the Cold War.
    • Despite talk of “decoupling,” China is continuing to integrate into global financial markets, which is something the Soviet Union never did.

    (2) It dwells on new tasks

    • NATO is well-suited to take on new responsibilities thanks to the ambiguity of its founding text.
    • That is not, however, the case with China. Aside from internal difficulties, NATO is not facing an immediate threat to its survival, nor does it need new functions to justify its relevance.

    (3) Repairing Transatlantic Divisions

    • There has been some limited transatlantic convergence in recent years, as the European Union has toughened its stance, labeling China a “systemic rival” in 2019.
    • Furthermore, the pandemic’s origins in China and the Beijing government’s initial response to the virus have given more voice to those who see China as a threat.
    • Recently, the United States and Europe have quietly increased their cooperation when trying to tackle China, such as over the Belt and Road Initiative.

    India and NATO

    During the Cold War, India’s refusal was premised on its non-alignment. That argument had little justification once the Cold War ended during 1989-91. Since then, NATO has built partnerships with many neutral and non-aligned states.

    Reasons for India’s reluctance

    • India’s real problem is not with NATO, but with Delhi’s difficulty in thinking strategically about Europe. This inhibition has deep roots.
    • Through the colonial era, Calcutta and Delhi viewed Europe through British eyes. After Independence, Delhi tended to see Europe through the Russian lens.
    • In the last few years, Delhi has begun to develop an independent European framework but has some distance to go in consolidating it.
    • Talking to NATO ought to be one important part of India’s European strategy.

    As the Cold War enveloped the world, nuancing Europe became harder in Delhi.  India began to see West Europe as an extension of the US and Eastern Europe as a collection of Soviet satellites.

    Why should India join NATO?

    Core to NATO’s future is its standing as an alliance of democracies, particularly given that its principal strategic competitors are China and Russia, major authoritarian powers.

    (1) Non-alignment is irrelevant

    • Non-alignment is a worn-out misnomer. India is under no illusions that a truly non-aligned path remains a viable option.
    • China’s meteoric rise has dramatically heightened India’s need for closer security relationships with politically reliable, like-minded states.
    • India’s policy of equidistance, with tilts towards Russia and China, is not viable enough to meet the juggernaut of China’s power in Indo-Pacific.

    (2) India is already partner with its members

    • An India-NATO dialogue would simply mean having regular contact with a military alliance, most of whose members are well-established partners of India.
    • India has military exchanges with many members of NATO — including the US, Britain, and France — in bilateral and minilateral formats.

    (3) Strategic benefits

    • Longer-term, India would derive military-strategic benefits from partnership with the world’s most powerful alliance.
    • In the event of a conflict, India would benefit from having prior planning and arrangements in place for cooperating with NATO and its Mediterranean partners.

    (4) Technological benefits

    • Partnering with NATO also carries technological benefits.
    • Under a US Act, India now enjoys the same technology-sharing and cost-sharing perks as other non-NATO US allies for purposes of the Arms Export Control Act.
    • It could also help to offset the growing concerns and negative scrutiny that India is increasingly attracting in Congress for its disproportionate reliance on Russian military equipment.

    (5) Membership would not corner ties with Russia

    • Russia has not made a secret of its allergy to the Quad and Delhi’s alliance with Washington.
    • Putting NATO into that mix is unlikely to make much difference. Delhi, in turn, can’t be happy with the deepening ties between Moscow and Beijing.
    • As mature states, India and Russia know they have to insulate their bilateral relationship from the larger structural trends buffeting the world today.

    Way forward

    • To play any role in the Indo-Pacific, Europe and NATO need partners like India, Australia and Japan.
    • Delhi, in turn, knows that no single power can produce stability and security in the Indo-Pacific. India’s enthusiasm for the Quad is recognition of the need to build coalitions.
    • More broadly, an institutionalized engagement with NATO should make it easier for Delhi to deal with the military establishments of its 30 member states.
    • On a bilateral front, each of the members has much to offer in strengthening India’s national capabilities.
    • India’s continued reluctance to engage a major European institution like NATO will be a stunning case of strategic self-denial.

    Conclusion

    • NATO is not offering membership to India; nor seems New Delhi interested. At this issue is the question of exploring potential common ground.
    • A pragmatic engagement with NATO must be an important part of India’s new European orientation, especially amidst the continent’s search for a new role in the Indo-Pacific.

    Treaties are concluded in the national interest purely. Hence India should think of NATO.


    References

    https://smallwarsjournal.com/jrnl/art/interview-west-needs-redevelop-tools-and-mindset-strategic-competition

    https://indianexpress.com/article/opinion/columns/why-india-must-not-say-no-to-nato-7260435/

  • [Burning Issue] Development Financial Institutions (DFIs)Bill

    Finance Minister has introduced the National Bank for Financing Infrastructure and Development (NaBFID) Bill 2021 in the Lok Sabha to pave way for setting up a government-owned DFI to fund infra projects.

    NaBFID Bill

    • The NaBFID Bill, 2021 was introduced in Lok Sabha on March 22, 2021.
    • The Bill seeks to establish the National Bank for Financing Infrastructure and Development (NBFID) as the principal development financial institution (DFIs) for infrastructure financing.

    Tap to read more:

    With inputs from PRS.

    What are DFIs?

    • The Bill describes DFI as the principal financial institution and development bank for providing and enabling infrastructure financing throughout the life cycle of the projects concerned.
    • A DFI is basically an organization, either owned by the government or charitable institutions to finance infrastructure projects that are of national importance without expecting the standard commercial return.

    Easy explanation:

    • The government wants to create jobs and it wants to do it in a way that’s sustainable.
    • One possible solution is to incentivize the private sector.
    • Because when they invest in creating large infrastructure projects, it has a ripple effect on the economy. It creates new jobs. It creates productive assets. It creates value in the long run.
    • However, these private entities won’t invest if they are strapped for cash.
    • So in a bid to free them from such constraints, the government will set up a new financing institution that will lend long term loans at quite reasonable interest rates.

    This would become the DFIs.

    DFIs: A Backgrounder

    • DFIs provide long-term credit for capital-intensive investments spread over a long period and low yielding rates of return, such as urban infrastructure, mining and heavy industry, and irrigation systems.
    • They are different from commercial banks, which mobilize short- to medium-term deposits and lend for similar maturities to avoid a maturity mismatch (a potential cause for a bank’s liquidity and solvency).

    Their inception

    • In India, the first DFI was operationalized in 1948 with the setting up of the Industrial Finance Corporation (IFCI).
    • Subsequently, India’s Industrial Credit and Investment Corporation (ICICI) was set up with the World Bank’s backing in 1955.
    • The Industrial Development Bank of India (IDBI) came into existence in 1964 to promote long-term financing for infrastructure projects and industry.

    Their disbanding

    • However, during the 1970-80s, DFI got discredited for mounting non-performing assets, allegedly caused by politically motivated lending and inadequate professionalism in assessing investment projects for economic, technical, and financial viability.
    • Due to these factors, Narsimhan Committee (1991) recommended disbanding of the DFI, and the existing DFI were converted into commercial banks.

    With the NaBFID Bill, the DFI model has made a comeback.

    Why need DFIs?

    The intent behind setting up a DFI is to provide long-term financing for infrastructure. India has since long time needed infra push due to various reasons:

    Infra boost: Infrastructure projects are complex, capital-intensive, and have long gestation periods that often pose risks to project financiers. The scale and complexity of infrastructure projects make financing a challenge.

    Banking limitations: There are difficulties in bank-led financing of infrastructure; their liability profile is not suited for financing long-term high-risk infrastructure projects.

    NPA Crisis: The surge in NPAs in the banking sector, and the need to augment financing of infrastructure for kick-starting the growth cycle have led to a renewed policy attention on setting up DFIs.

    Pandemic induced crisis: Covid-19 pandemic is impacting business and economy, globally. It has exacerbated inequality, the poverty gap, unemployment, and the economy’s slowing down. Thus, infrastructure building through DFIs can help in quick economic recovery.

    Economic boost: The government has envisaged attaining the target of becoming a USD 5 trillion economy by 2025.  However, this goal will depend on infrastructure across the country. DFI is a step in the right direction towards this goal.

    Global success stories: DFIs in China, Brazil, and Singapore has been successful in both domestic and international markets.

    Various challenges

    (1) Sources of funds

    The lack of a sustainable source of funds, however, can prove to be a serious constraint to the proposed DFIs. Subsidised credit from the government and the Reserve Bank of India (RBI) has not proved to be a sustainable source in the past.

    (2) Banking Crisis

    At the heart of this old idea coming back in a new shape is the banking crisis in India, which emerged as a consequence of banks trying to fulfill the funding requirements of infrastructure projects.

    (3) Regulatory forbearance

    There could also be need for some regulatory forbearance — the older DFIs (IDBI, ICICI) operated in an era with no regulatory norms for quite a while, save their own internal guidelines.

    Way Forward

    Overcoming finance hurdles

    • To ensure that the proposed institution is able to finance infrastructure investment, it should be allowed to raise long-term financing from domestic and external sources.
    • The DFI should be allowed to tap the pools of capital in the form of pension funds, insurance companies and mutual funds.
    • The proposed DFI should also be allowed to raise long-term financing from external markets and from multilateral financial institutions.

    Sound management structure

    • The proposed DFI needs to have a sound management structure.
    • The government’s commitment to have a professional board with 50 per cent non-executive members is a step in the right direction.

    Competency

    • The proposed DFI should be able to attract competencies such as those of investment professionals and other experts who are able to assess the project from the development standpoint and the risks involved.

    Going beyond infra

    • NABFID must also help take infrastructure beyond roads and power, because there are other crucial sectors, especially health, social and urban infrastructure (water supply, sanitation) that has more pressing needs.
    • More importantly, these sectors need the benefit of private expertise and skills more than finance.

    Ensuring Good Governance

    • While freeing a DFI from political interference or crony lending is necessary, merely having private shareholders or professional managers on board isn’t sufficient to ensure good governance.
    • This has to be backed by a robust system of external checks and balances such as supervision by RBI and proper due diligence by auditors and rating agencies.

    Ensuring Ease of Doing Business

    • In the past, ambitious highway and pipeline projects have been continually held up by local protests and land acquisition woes, retrospective taxes, and poor contract enforcement.
    • The success of DFIs is contingent on ironing out such issues and removing on-ground impediments to the ease of doing business.

    Lastly, fix the distorted demand side (grappled with twin balance sheet) before increasing supply. Any number of institutions can be launched, but cannot be expected to work miracles in a corroded system.

    Conclusion

    NABFID, with the support of the government, must go beyond being a provider of capital, to helping enable the return of private sector to infrastructure; else it could end up as just one more DFI in the financing spectrum.

    While boosting investment in the infrastructure sector is imperative for sustained growth, the need for the hour is to resolve persistent issues in the debt market that impede long-term financing flow.


    References

    https://www.thehindubusinessline.com/opinion/editorial/return-of-dfis/article33794397.ece

    https://www.prsindia.org/content/examining-rise-non-performing-assets-india

    https://theprint.in/ilanomics/how-modi-govt-can-make-the-reborn-development-finance-institution-a-success-this-time/624370/

    https://www.thehindubusinessline.com/opinion/the-new-dfi-must-look-beyond-financing/article34217199.ece

    https://www.livemint.com/opinion/columns/nostalgia-holds-lessons-for-new-financial-institutions-11616951998342.html