Category: Burning Issues

Why in News?

The government of India recently decided to build a high-speed rail (HSR) corridor between Mumbai and Ahmadabad at a cost of Rs 97,636 crore with Japanese financial and technical assistance.

What do we understand by High-Speed Rail?

1. High-speed rail is a type of rail transport that operates significantly faster than traditional rail traffic, using an integrated system of specialized rolling stock and dedicated tracks.
2. High-speed rail is a type of rail transport that operates significantly faster than traditional rail traffic, using an integrated system of specialized rolling stock and dedicated tracks.
3. While there is no single standard that applies worldwide, new lines in excess of 250 kilometres per hour (160 mph) and existing lines in excess of 200 kilometres per hour (120 mph) are widely considered to be high-speed, with some extending the definition to include lower speeds in areas for which these speeds still represent significant improvements.
4. The first such system began operations in Japan in 1964 and was widely known as the bullet train. High-speed trains normally operate on standard gauge tracks of continuously welded rail on the grade-separated right-of-way that incorporates a large turning radius in its design.

Global Practice of High-Speed Rail

1. Shinkansen has emerged as an invaluable part of Japan’s mobility and economy.
2. With already a 22,000-km sprawling high-speed PDL (passenger dedicated lines) network, longest for any country.
3. China is set to extend it to 30,000 km by 2020 when its total rail routes aggregate to 200,000 km.
4. Less than a decade ago, China had no HSR; now its high-speed trains move twice as many passengers as its airlines, and the demand keeps growing.

High-Speed Rail in India

1. India has one of the Largest rail Networks in the world, but as of now it does not consist of any line classed as (HSR), which allows an operational speed of 200 km/h or more.
2. The current Fastest Train in India is the Gatimaan Express that runs with a top speed of 160 km/h, with an average speed of above 100 km/hr between Delhi and Agra.
3. The first Proposed High-speed Train in India would run some 500 kilometres (310 miles) between India’s financial capital Mumbai and the western city of Ahmadabad, at a top speed of 320 km/h.
4. Under the Japanese proposal, construction is expected to begin in 2017 and be completed in 2023. It would cost about 980 billion (US$15 billion) and be financed by a Low-interest loan from Japan.
5. Recently Government has introduced Tejas Express which is India’s first semi-high speed full AC train fleet introduced by Indian Railways, featuring newer modern onboard facilities.

Why there is a need of High-Speed Rail in India

1. As a McKinsey report suggests, by 2025, the number of households earning Rs.2,00,000-Rs10,00,000 annually will have risen to 583 million from the current 50 million. More intensive urbanization, as well as rising incomes, would lead to higher travel propensity.
2. It is inconceivable that the Railways would continue to deny itself a peep into the rapid technological and commercial transformation railway systems world over experience.
3. Concerns over depleting fossil fuel reserves, climate change, overcrowded airports, delayed flights and congested roads have conspired against the HSR technology alternative.
4. Energy-efficient and environmentally benign, a high-speed electric train emits an eight and a fifth of carbon dioxide as against automobiles and aeroplanes per passenger km, respectively. A double-track rail line has more than thrice the passenger carrying capacity of a six-lane highway while requiring less than half the land.

The advantage of High-Speed Rail

1. It will bring down the transportation time and cost to lowest in the world. It will bring-in massive efficiency in Indian economy.
2. It will build a local base for the next generation of the railway locomotives for export.
3. Indian logistics cost will significantly come down, as of now it is thrice of China
4. It will make Indian exports and manufacturing cost competitive. Indian Human Resource coupled with Japanese skill and technology will make India a manufacturing hub of the world.
5. It will accelerate scientific research within the country in high-end material science and magnetic science.
6. The bullet train will not only bring about economic transformation but will also lead to the social transformation of the country.
7. India will have strong integration across regions, bringing down the regional differences and increasing people-to-people contact.

Other advantages

• Cheap:

The negotiated terms — the rate of interest of 0.1 per cent per annum and tenure of 50 years with 15 years grace — is the best till now for any project financed through a bilateral/ multilateral agency in India.

• Speed: 

1. High speed is one of the biggest reasons for the proposal of this idea when it was first initiated in India. Major cities connecting with towns of economic growth face the problem of fast transportation.
2. This would save time and boost businesses amongst the connected cities. Reduction in commuting time is greatly required in Mumbai and other metro cities where a lot of time is consumed in the process.

• Promotes Make in India:

The assistance programme involves a transfer of technology and a Make in India component, which will have long-term benefits for Indian manufacturing.

• HSR’s unblemished safety record is an important benefit:

With a 2,500-km network, providing high frequency, up to 14 trains per hour, the Shinkansen ever since its inception in 1964 has maintained a unique record of no fatal accident. The TGV has been running without any accidents for the last 30 years, and more.

Challenges /Criticisms

1. A project report by the Indian Institute of Management, Ahmedabad estimates that at least 1 lakh passengers at fares approximately Rs. 1,500 per 300 km would be required daily for the project to break even. The cost of airfare between the two cities is around Rs. 2,500. With comparable fare to airways, the project doesn’t seem to serve the purpose.
2. The complexity of the project also arises due to a variety of socio-economic implications like land acquisition, rehabilitation, and environmental concerns.
3. Bullet train project in India would be a massively expensive involving enormous public expenditure that India cannot afford as a huge public investment is needed in social infrastructure and poverty eradication.
4. With a majority of Indian population travelling in sleeper class or lower class for thousands of kilometres the project will be benefiting only international corporates, local contractors and a small number of aspirational elites indulging in luxury travel.
5. With the advent of new technologies like Hyperloop Transportation Technologies which propose to make travel as fast as 760 miles per hour, investing a humongous capital on bullet train seems a cursory and outdated.
6. Bullet trains require seamless straight tracks on a flat terrain. Though France managed it in the existing tracks itself, if new lands need to be acquired, it can come only at an expensive compensation in the Mumbai-Ahmedabad industrial cluster. It will also demand huge political will.
7. Considering the existing scenario of the quality of O&M in Indian railways, the maintenance of this new elephant will pose many challenges even if it is privatized. Fencing all along the track and over bridges at all the line crossings will cost too dearer.
8. The power demand will be more too. It will require the infrastructure of existing railway stations from where bullet train will pass to be upgraded as per the specifications which again will cost enormously.

Conclusion: 

1. The issues in developing an HSR network in India are complex. Given that India is a developing country, the primary concern is whether the funds for such a project could be better utilized in other domains, including in upgrading conventional rail.
2. However, the Japanese funding to the tune of 80% of the project cost may not be available for other uses.
3. The complexity of the project also arises due to a variety of socio-economic implications like land acquisition, rehabilitation, and environmental concerns.

Why in News?

Union Ministry of Human Resource has prepared draft Higher Education Commission of India Bill, 2018 to repeal of the University Grants Commission (UGC) Act, 1956 and for the establishment of the Higher Education Commission of India (HECI) with focus on improving academic standards and the quality of Higher Education

Why the need for HECI (Higher Education Commission of India?

1. The need for a single regulatory body arose largely in the context of multiple bodies set up over the years trying to cope with the ever-increasing complexity of the sector
2. The heavy hands of multiple regulators (like the UGC and All India Council for Technical Education), together with the empowerment of professional bodies (like the Bar Council of India and Council of Architecture) have not yielded the desired dividends
3. Mushrooming of institutions and a steady decline of standards in most of them have not done much good to the image of the government and the architecture of regulation
4. National Assessment and Accreditation Council (NAAC) in its assessment report pointed out that 68% of institutions in India are of middle or poor quality.
5. Nearly 35% of professor posts and 46% of assistant professor posts out of total sanctioned strength remain vacant across the country.
6. India barely spends 2.5% of its budgetary allocations on education. This is far below the required amount needed to upgrade the infrastructure at public institutes.
7. There is a wide gap between industry requirements and curriculum taught at colleges. This also renders graduates unemployable lacking in specific skill-sets.
8. The multiplicity of regulatory bodies and regulatory standards has prevented foreign educational institutions from opening campuses in the country.
9. India has barely 119 researchers per million of the population as compared to Japan which has 5300 and US which has 4500. Besides, in US 4% of science graduates finish the doctorate, in Europe, this number is 7%, but in India barely 0.4% of graduates finish the doctorate

Principles of HECI

HECI is in accordance with the commitment of Government for reforming the regulatory systems that provide for more autonomy and facilitate holistic growth of the education system which provides greater opportunities to the Indian students at more affordable cost. The transformation of the regulatory set up is guided by the following principles:

1. Less Government and more Governance: Downsizing the scope of the Regulator. No more interference in the management issues of the educational institutions.
2. Separation of grant functions: The grant functions would be carried out by the HRD Ministry, and the HECI would focus only on academic matters.
3. End of Inspection Raj: Regulation is done through transparent public disclosures, merit-based decision making on matters regarding standards and quality in higher education.
4. Focus on academic quality: HECI is tasked with the mandate of improving academic standards with a specific focus on learning outcomes, evaluation of academic performance by institutions, mentoring of institutions, training of teachers, promote the use of educational technology etc.
5. Powers to enforce: The Regulator will have powers to enforce compliance with the academic quality standards and will have the power to order the closure of sub-standard and bogus institutions. Noncompliance could result in fines or jail sentence.

Highlights of the Higher Education Commission of India Bill, 2018

1. The focus of the Commission will be on improving academic standards and quality of higher education, specifying norms for learning outcomes, lay down standards of teaching/research etc.
2. It will provide a roadmap for the mentoring of institutions found failing in maintaining the required academic standards.
3. It shall have the power to enforce its decisions through legal provisions in the Act,
4. The Commission shall have the power to grant authorization for starting of academic operations on the basis of their compliance with norms of academic quality.
5. It will also have the powers to revoke authorization granting to a higher education institution where there is a case of wilful or continuous default in compliance with the norms/regulations.
6. It will also have the power to recommend the closure of institutions which fail to adhere to minimum standards without affecting students’ interest.
7. The Commission will encourage higher education institutions to formulate a Code of Good Practices covering promotion of research, teaching and learning.

Issues in HECI Bill

1. Bill seems to implicitly open the door to foreign degree-granting institutions as long as they meet the specified norms.
2. With its mandate of improving academic standards with a specific focus on learning outcomes, evaluation of academic performance by institutions, training of teachers, the HECI is likely to overregulate and micromanage universities.
3. The nature of the structure of the commission and its advisory council shows that they are bound to have more “government” in decision-making processes rather than academics.
4. The move to replace the UGC with the HECI points to the Centre’s aim to restrict the role of the States in matters relating to education.

What corrective measures can be taken before its enactment?

1. It must phase out the current system of compartmentalizing research in research councils and education in HEIs (Higher Education Institutions) while promoting greater cooperation in research among HEIs, industry and government.
2. Ministry must also create a national research foundation, which would b adequately funded and charged with the responsibility to make research a central feature of our leading universities.
3. It must make explicitly about flexibility inherent in the credit system would allow institutions to align their systems to a three-year bachelor’s degree as in the UK or a four-year bachelor’s degree as in the US.
4. A separate body is required to assume the function of providing education grants to HEIs.
5. HECI also needs to clear about the accreditation process in Higher Education Institution.

Way forward

1. A complete revamp is needed to meet the present demand and address the future challenge that India is about to face.
2. To reap the diverse culture demographic dividend and to maintain peace and social harmony among them quality education with values are the necessary area to focus.

Why in news?

• The Directorate General of Foreign Trade banned the use of imported petcoke as fuel.
• Use of Petcoke is allowed only for cement, lime kiln, calcium carbide and gasification industries when used as the feedstock or in the manufacturing process on actual user condition

Why this relaxation?

1. The decision to modify its ban was largely due to the government’s submissions that petcoke is used as an ingredient and not as fuel in the cement industry
2. The sulphur is mostly absorbed in the process of cement-making
3. Hence the Court has relaxed its ban on the use of petroleum coke (petcoke) and allowed cement and limestone industries to use it

About Petcoke

• Petcoke is an exceptionally polluting form of carbon which is banned in several countries due to its severe toxicity.
• Petroleum coke or petcoke, is a final carbon-rich solid material that derives from oil refining.
• It is categorized as a “bottom of the barrel” fuel as it is essentially residual waste material which is obtained after refining coal to extract lighter fuels like petrol.
• Petcoke is abundantly used in India in several manufacturing industries such as cement, steel and textile and it is generated in vast quantities by refineries as it is significantly cheaper that coal, has high calorific value and is easier to transport and store.

Composition

• Petcoke is over 90 percent carbon and emits 5 to 10 percent more carbon dioxide. (CO₂) than coal on a per-unit-of-energy basis when it is burned.
• Petcoke has a higher energy content therefore it emits between 30 and 80 percent more CO₂than coal per unit of weight.
• The difference between coal and coke in CO₂production per unit energy produced depends upon the moisture in the coal (increases the CO₂ per unit energy – heat of combustion) and volatile hydrocarbon in coal and coke (decrease the CO₂ per unit energy).

What it is used for?

• High-grade petcoke which is low in sulphur and heavy metals can be used to make electrodes for the steel and aluminum industry.
• But the majority of petcoke manufactured globally, approximately 75-80%, is of a much lower grade, containing higher levels of sulphur and heavy metals and is used solely as fuel.
• In recent years, petcoke is also being used in captive power generation plants in India

Implications

Health hazards

• While vehicular fuels like petrol and diesel contain 50 parts per million (PPM) of sulphur oxide, furnace oil contains 23,000 PPM and petcoke contains a whopping 74,000 PPM of sulphur content which is released into the atmosphere as emissions.
• Petroleum coke is a source of fine dust, which can get through the filtering process of the human airway and lodge in the lungs. They can cause serious health problems.
• Apart from sulphur, petcoke also releases a cocktail of other toxic chemicals such as nitrous oxide, mercury, arsenic, chromium, nickel, hydrogen chloride and greenhouse gases (GHG) which contribute to global warming.
• Petcoke is much more potent than coal and causes greater harm to the environment and health.
• According to a 2015 report published by The Lancet Commission, 8 residents of Delhi die each day as a result of air pollution. Delhi has been ranked as India’s most polluted city and is also among the world’s most critically polluted cities.
• As per the report, India has topped the list of pollution related deaths in 2015 with a staggering 2.5 million deaths due to pollution. The report also revealed that only a handful of cities in India comply with the air quality standards prescribed by the Central Pollution Control Board and identified that the primary cause behind increasing air pollution as fossil fuels.
• Petcoke has a deleterious effect on the respiratory system and particulate matter can get embedded in lung tissues, causing serious long term health hazards.

Environmental implications

• Petcoke is an extremely stable fuel which means there is little risk of combustion during transportation, but due to its high carbon content when it does combust it releases up to 10% more CO2 per unit of energy that normal coal. That’s higher than almost any other energy source in existence and makes petcoke a huge contributor to the creation of greenhouse gases.
• Increased pollution controls are required during petcoke combustion to capture the excess sulphur found in low grade petcoke. The heavy metal content of petcoke has also left many worried, both at the effects of releasing it into the air when petcoke is burned, and the implications it has for the local environment during storage.

India’s carbon tax model and its impact on industry

• The reason for the petcoke menace in the recent years can be directly attributed to the Central Government’s inherently flawed carbon tax policy.
• Carbon tax was introduced in India in 2010 and has since its inception been fraught with complications due to its improper structuring and pervasive maladministration.
• Among the many intrinsic loopholes in the carbon tax policy is its questionable coverage. Unlike many other jurisdictions such as Australia, the scope of India’s carbon tax is myopically restricted to coal, thereby excluding other forms of greenhouse gases (GHG) emitting fuels like petcoke and furnace oil; many of which have a deeper impact on the environment and health than coal.
• The main objective of carbon tax is to mitigate negative externalities of fossil fuels on the environment, and act as a pigouvian tax, logic dictates that it should be applicable on all sources of carbon emissions
• Although petcoke is much more harmful than coal both from an environmental and health perspective, there is no tax or cess levied on the use or production of petcoke.
• In order to circumvent the current carbon cess of Rs 400 per metric tonne on coal, cement and steel manufacturers have been heavily relying on petcoke, thereby increasing carbon emissions and air pollution.
• While India witnessed a decrease in coal imports by 20 million tonnes last year, petcoke imports doubled exceeding 10 million tonnes.

Loopholes in carbon tax policy

• India’ carbon tax policy has always been weak and riddled with inefficiencies; however, post-GST it has become positively redundant.
• Earlier, proceeds from the carbon cess used to be accumulated in an earmarked non-lapsable fund known as the National Clean Energy Fund (NCEF).
• The NCEF was supposed to be used for funding clean energy projects and encourage industries to shift from fossil fuels to clean energy.
• Currently, China and India are the leading consumers and importers of petcoke in order to catalyze rapid industrialization and economic growth.
• Since 2014, China has steadily been decreasing its dependence on petcoke by shifting to cleaner alternatives. India continues to increase its consumption of petcoke and other non-carbon fossil fuels.

Gobar Dhan Scheme: Galvanising Organic Bio-Agro Resources-Dhan

Introduction

The PM called for educating people about the utilization of Cattle Dung for converting into more valuable fuel thus improving the lives of villagers.

Objectives

1. Make farmers more self-reliant by generating an alternate source of income.

2. Generate wealth and energy from cattle and other waste.

3. To make villages clean.

Key Features and Benefits

There are a number of benefits that the government aims by implementing the Gobar Dhan Yojana.

Dung fuel – The government has announced that it shall be making best use of Solid waste excreted out by the cattle. The dung can be transformed into a type of Bio fertilizer that can be used by the villagers for fuelling up their stoves at the homes. The fuel can be used as a subsidy for CNG and LPG.

Villagers Advantage – Under he new scheme the government aims at making the life of villagers much better. This will also educate the people not to defecate in the open places. This helps in maintaining hygiene factor.

Income generation – In present time farmers are merely dependent on their crop yields for generating income. With the implementation of the scheme the farmers will be able to generate better ways for income. As the farmers just have to make use of animal waste so it is obvious that farmers don’t need investment amounts in purchasing basic raw materials.

115 districts selected – The government has made a selection of over 115 districts for implementation of the scheme. Besides the government has also made it clear that with implementation of the scheme in these villages, it shall try and improve the facilities as well including infra structure.

Compost – Under the scheme the government has also made it clear that farmers will be able to make use of easily available Compost fertilizer for their farm lands. The government will educate farmers to help set up their own compost plants.

Infrastructure development – Under this scheme the government aims at improving the available infrastructure to help promote development for the villages so the overall GDP of the country global wise could be much better. Under the scheme the government will ensure that it has made use of better techniques for development process.

Power generation –Under the scheme the government has ensured to generate fuel in the form of Biogas. Besides the government has also stated that the Biogas can further be used for generating electricity for the villages due to availability of surplus amount of dung.

Invite Corporate sectors– The government has also stated that with the development of the scheme and generation of cheaper form of fuel the corporate sectors may be interested in investing their money in the rural areas.

Clean India – The scheme has been launched by the government in accordance to the movement run by Gandhiji on his anniversary in 2014. Under the drive the government had made the idea of transforming waste into something useful has been implemented in the scheme.

Husbandry – In present time the husbandry of animals is one business that is very much common within villages. But with this the dung is usually wasted as it is not used up completely. Under the scheme the government will offer people with an opportunity to generate income by selling dung to the authorities.

Long term plans – In present time the nation is standing 6th in place for Bio gas manufacturing. Even with increasing vehicles on the streets over 95 percent of vehicles demand more fuel. This means that the country needs more fuel to run the vehicles. With its ever increasing economy the country aims at generating better fuel opportunities by 2022.

Challenges

• Aggregation of cattle waste and maintaining a regular supply to plant operators becomes imperative.

1. The Biogas plants that were constructed was not able to keep up, both in terms of production as well as speed, leading to inefficiencies and losses.
2. The Biogas plants that are being planned to be constructed should have better technology which sustains, upscales and is widely accepted by farmers and women in rural areas.
3. Adequate training should be provided to the workers.

• India is dealing with a deficient fodder for our cattle. Fodder production for the cattle need to be enhanced

1. Farm Mechanization may pose challenges to the population of the cattle as the machines will replace the cattle.
2. This might lead to ignorance on the part of the cattle’s master.

Way Forward

1. Incentivize Behavioral Change: Cattles are considered important and the fact that the gobar can be utilized and become a source of income needs to be ingrained in the minds of the farmers. This will not just generate additional income, but will reduce the pains of gobar disposal, thereby leading to the communities becoming swacchh.

2. Generating wealth from waste in rural areas will require the involvement of all actors and sectors.

3. Investments from the private sector and local entrepreneurs will be needed.

4. Panchayats and village communities will have to play key roles to leverage the animal and organic waste that goes into water bodies, dumping sites and landfills.

5. Informal sanitation service providers can be integrated into the system by training and licensing them.

6. Political will and strong public demand for cleaner, healthier living environments should definitely drive the way ahead.

Possible Questions

What are the salient features of the Gobar Dhan Scheme? Can it effectively contribute to the desired goals it has set out to achieve? Discuss.

Why in News?

The Union cabinet recently approved Fugitive Economic Offenders Bill to confiscate assets of those who flee the country and refuse to return after committing frauds in excess of Rs. 100 crore.

Who is a fugitive economic offender?

Fugitive economic offender is a person who has an arrest warrant issued in respect of a scheduled offence and who leaves or has left India to avoid criminal prosecution, or refuses to return to India to face criminal prosecution.

How someone is declared a ‘fugitive economic offender’?

According to the draft law, officials, referred to as directors or deputy directors under the Prevention of Money Laundering Act, can file an application to a Special Court for a declaration that they are a fugitive economic offender. This application should

1. Give the court the reasons for why it should declare the person a fugitive offender
2. Provide information about the current whereabouts of the person
3. Provide a list of properties believed to be the proceeds of the crime
4. Provide a list of properties which the government believes should be confiscated and,
5. Provide a list of other persons who may have some interest in those properties.

As soon as such an application is filed, the government can attach (meaning prevent the trading or selling of) any properties mentioned in it for 180 days. Once the application is done, the Special Court will send a notice to the person and anyone else who has interests in the attached property.

Existing laws related to fugitive economic offenders:

The existing laws under which such fugitive economic offenders are tried include:

1. Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI),
2. Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (SARFESI) and
3. Insolvency and Bankruptcy Code (IBC).

Why there is a need for a new law?

1. There have been several instances of economic offenders fleeing the jurisdiction of Indian courts in fear of proceedings.
2. Under the existing laws, banks have failed to recover the dues in the past three years.
3. The absence of such offenders from Indian courts has several consequences

• It hampers investigation in criminal cases
• It wastes precious time of courts of law
• It undermines the rule of law in India.

Highlights of the Bill:

1. To deter economic offenders from evading the process of Indian law.
2. Applicable in value of offences over Rs 100 crore.
3. Empowers Financial Intelligence Unit (FIU) under finance ministry to file an application in special court for the declaration of fugitive economic offender for confiscation of their assets.
4. As soon as such an application is filed, the government can attach any properties mentioned in it for 180 days.
5. Once the application is done, the Special Court will send a notice to the person and anyone else who has interests in the attached property. The notice to the person involved will require them to appear at a specific place and time no less than six weeks from the date of the notice. If they refuse to appear for up to six weeks, the Special Court can take up the case and label the person a fugitive economic offender.
6. Once a fugitive economic offender has been declared, the government can confiscate the “proceeds of the crime”, even if it is not owned by the fugitive offender, and any other properties they own as well.
7. Confiscation of other  property belonging to such offender in India and abroad, including benami property.
8. Disentitlement of the fugitive economic offender from defending any civil claim; and
9. An Administrator will be appointed to manage and dispose of the confiscated property under the Act.

Challenges with the bill

Violation of the Indian Constitution:

• Under the new law, there will be blanket ban on offenders contesting the confiscation of their properties through civil suits.
• An absolute ban violates justice, equality and in result the Indian Constitution.

Violates the principle of innocent unless proven guilty:

• The bill allows selling the property without trial = violation of the settled principle under the Constitution that one is considered innocent unless proven guilty.

Not easy to find buyers:

• Assets confiscated by enforcement agencies and courts are termed as distressed properties, and seldom find buyers.
• A case in point is Sahara’s Amby Valley, which despite efforts by Bombay high court’s official liquidator has been unable to find suitable buyers for almost a year.

Way forward

1. The blanket disentitlement from pursuing or defending any civil claim under the law should be clarified and made reasonable.
2. To avoid failed attempts at the sale the bill should provide for

• time limits for disposal and encashment of property,
• separate limits for movable-immovable property and running business, and
• Quick disposal of property which would lose its value over time.

Practice Question

1. Who are fugitive economic offenders and how they are declared as such? Do you think that the fugitive economic offenders law would help solve the problem of economic offences in India?

Why in News?

In recent times there are various instances of the forest fire in India, which has huge consequences.

Regions where forest fires occur in India

1. The bulk of forest fires in India happens in the tropical dry forests.
2. About 70% of forests in India composed of scrub, grassland, dry and moist deciduous forests.
3. Every year in March, forest fires happen in the dry deciduous forests in India, especially in A.P, M.P, Chhattisgarh, Jharkhand, Karnataka, Maharashtra, Odisha and Assam

Causes of forest fires

Natural causes

1. Temperature, level of moisture in soil and atmosphere, duration of dry spells, lightning, spontaneous combustion and volcanic eruption.
2. The friction of tree branches swaying due to high-velocity wind or rolling stones that causes sparks and ignites fires in leaf litter.

Man-made Causes

1. Arson or open flame, discarded cigarettes, power-line sparks and sparks from equipment.
2. Ignition of wildfires through contact with hot rifle-bullet fragments.
3. It can also be ignited in shifting cultivation areas such as north-eastern regions and eastern coastal regions.
4. It has been estimated that 90% of forest fires in India are man-made, when people enter forests to graze cattle, collect fuelwood, timber and other minor forest produce.

How is policy responsible?

1. The main cause of the forest fire crisis is due to the blanket implementation of no-fire forest policy.
2. This approach of fire protection is not suitable to the ecology of India’s tropical dry forests.
3. For example, the fires in Bandipur Reserve were difficult to control because of sufficient fuel supplied by the invasive species Lantana Camara.
4. The no-fire policy was responsible for the spread of Lantana in the first place.
5. Regular, low-intensity forest fires could have stopped the spread of Lantana in the past.
6. But for now, the future forest fires will be difficult to control until Lantana is physically reduced first.

Consequences

1. Forest fires cause serious health hazards by causing smoke and noxious gases by affecting the local climatic setup.
2. They also result in increased CO2 levels and contribute to climate change.
3. Loss of biodiversity and wildlife habitat affects the ecological setup that may cause problems with other natural resources like drying up of water resources, loss of soil fertility etc.
4. Frequent forest fires in forested areas decrease the natural regeneration capacity of the environment.

Way forward

1. Awareness should be created among the villagers residing near the forests with respect to the long-term ill effects of forest fires.
2. Measures to prevent forest fires have to be taken before summer season when fires are prevalent.
3. Local people should be given skills to use online portals or mobile apps in order to monitor the forests for fires and inform forest authorities regarding the same.
4. The government should make available the alternatives for greener pastures.
5. Village people should have access to employment and sustainable livelihood opportunities through better connectivity and infrastructure.
6. Officers at ground level shall work together with local people to bring a holistic solution

Practice question

1. There are growing instances of frequent fires in the forest regions of India. What do you think are the causes and what measures would you suggest to resolve it?

Why in news?

Recently rupee witnessed a significant depreciation in its value. It’s value against the dollar has fallen by more than 5% since the start of 2018 and the fall is continuing to gain momentum. India is not the only country to face currency depreciation, but also others like Indonesia, Argentina, Mexico, and Turkey.

Causes of depreciation

The U.S. Federal Reserve is expected to tighten its monetary policy stance further through slowing down the growth in U.S. money supply is considered as the main reason. The slowdown in the growth of U.S. money supply affects the value of other currencies in two ways

• 1. Interest rates in the U.S. will begin to rise as the Federal Reserve’s demand for different assets begins to decrease. This causes a rush among investors to sell their assets in other countries and invest the money back in the U.S. where they could earn higher returns. The resultant flow of capital from emerging markets to the U.S. rise the selling pressure on emerging market currencies and buying pressure on the dollar.
  2. When the Fed tightens the money supply, the availability of dollars in the global market begins to decrease which increases the demand for dollars among speculative traders and a decrease in demand for other currencies.

Negative Impacts

1. It keeps the cost of oil imports high. India imports more than 70% of its crude oil requirements. Thus fall in rupee value, means India have to give a higher amount to buy oil from suppliers.
2. Falling rupee increases current account deficit since import expenditure will be higher than export earnings.
3. It will increase inflation in the country since the increase in oil import costs would mean higher fuel costs and it will cause pressure on overall economic activity, thus increasing inflation.
4. The declining rupee would impact corporate revenue due to higher import costs. This would means lower wages or salaries for employees, thus affecting the standard of living.
5. Fall in rupee value will affect the inflow of foreign investments.
6. Importers and oil marketing companies are the biggest losers since they import their main raw material, that is, crude oil.

Positive impacts

1. A cheaper rupee will incentivise Indian companies to export more. It will also help them substitute some of the costlier imported goods in the domestic market with local products. Thus, rupee depreciation can help in developing the manufacturing base of the economy.
2. Travel to India gets cheaper and the tourism industry may benefit from it.
3. Indians working abroad can gain more on remitting money to their family in India. Ultimately, this will result in reducing the current account deficit to an extent.

Way forward

1. To solve the currency problem, Reserve Bank of India (RBI) can influence the value of rupee through effective regulation of money supply through its monetary policy stance.
2. Benchmark interest rate can be used effectively to attract the foreign capital into the country and in result increasing the value of the currency.
3. Direct intervention of RBI in the forex market can also help reduce the selling pressure on the rupee

Practice question

1. What do you understand by the currency depreciation? How does the fall in rupee affect Indian economy? Discuss.

Why in News?

1. Recently, the central government had formed a task force to draft a new Direct Tax law which seeks to replace the existing Income Tax Act, 1961.
2. The Task Force will submit its report to the government on how to fix the more-than-50-year-old Income Tax Act, 1961.

What is the flat tax rate?

It is an income tax system in which everyone pays the same tax rate irrespective of income level. Therefore it is also named as proportional taxation system.

What is the Need?

1. India’s current tax system is progressive in nature, with tax rates going up when the income level goes up. To meet the changing economic needs of the country, and to fix the more than 50-year-old Income Tax Act, 1961 which is not consistent with present times, a flat tax rate system is necessary.
2. To reinstate the Direct Tax Code (DTC) in a new structure.

Arguments in favour

1. A flat tax rate of 12% would be appealing even for low-income people.
2. The compliance rate will increase by eight percentage points to 33%.
3. While simplification and better administration of the law are major reforms that India needs, according to economists, some even suggest going for a flat tax system or lower tax system.
4. The classic case of the flat tax system is of Hong Kong, Russia and New Zealand.

• One of the poorest country during the World War II, Hong Kong adopted a flat tax in 1947 which led to higher compliance and dramatic economic growth.
• Russia adopted a 13% flat tax, which went into effect in 2001 and Russia’s economy has expanded by about 10 percent since then. Russia’s income tax revenue has grown to more than 50% as people found it fair and easier to pay.
• New Zealand is called BBLR — broader bases and lower rates — country. In New Zealand, the tax law experts focus on taking a lot of actions at a low rate, or flat rate and most importantly at the simpler tax code. New Zealand in 1980 did away with deductions and write-offs and instead applied the lowest rates on average workers. With higher compliance, New Zealand is one of the countries with the best income tax practices. Instead of imposing a progressive tax scheme, it gives it as an option for people.

Arguments against

1. India’s current tax system is progressive in nature, with tax rates going up when the income level goes up. India is a democratic country and is expected to invest in social welfare and infrastructure. Hence progressive tax rate is necessary.
2. For a developing country like India, which is in the lower middle-income bracket, a flat tax structure may not be an equitable one. Income inequality in India is one of the highest, with 22 per cent of the national income going to top 1 per cent.
3. Only with a progressive tax system, such wide income inequalities can be addressed. Hence a flat tax system will be regressive, considering India’s current situation.
4. A system prescribing the higher rate of income tax for a higher income group helps garner revenue without becoming burdensome on lower income taxpayers
5. The great success of Russia not just through the imposition of flat tax rate but through several changes in both the structure and the administration of taxes. The reforms widened the tax base by eliminating many exemptions and deductions as well as increasing taxes on capital income.

India’s attempts to impose a flat rate

1. An attempt to redraft the Income Tax Act made by the ex-finance minister P. Chidambaram in 2009 through the Direct Taxes Code (DTC). It proposed a simpler tax code and did away with unnecessary exemptions and created space for lower tax rates. However, the bill lapsed with the dissolution of the 15th Lok Sabha in 2014.
2. The NDA government, since coming to power in 2014, has already implemented general anti-avoidance rules GAAR.
3. In 2016 Finance Minister promised to lower corporate tax rate to 25% in 5 years.
4. Currently, income up to Rs 2.5 lakh per annum is exempt from tax for individuals.

Way forward

Flat income tax rate has many success stories from many countries. Hence it is high time that India also adopts it. However, it should be implemented as a pilot project to monitor various impacts and come up with effective solution to prevent various challenges in the actual implementation. And the government should also ensure that the poor are not affected from this reform.

Practice question

1. What do you understand by the flat income tax rate? Discuss whether implementing a flat income tax rate in a democratic country like India is feasible or not.

Why in News?

India ranks 177 among 180 countries in the Environmental Performance Index 2018.

A drop in the rank from the last index demands a relook at the country’s environmental policy.

About Environmental Performance Index?

1. It is a biennial report published by Yale and Columbia Universities in collaboration with the World Economic Forum.
2. It ranks 180 countries based on 24 performance indicators.
3. It is divided into 10 categories covering environmental health and ecosystem validity.
4. Top rank in sustainability taken by Switzerland, followed by France, Denmark, Malta and Sweden in the recent EPI.

India’s status

1. India at the 177th place is one of the bottom 5 countries on the index.
2. The 177th place is a drop of 36 points from 141 in 2016.
3. Emerging economies like Brazil and China ranks at 69 and 120.
4. India is at the bottom of the environmental health category.
5. In terms of air quality, India is at third last.
6. Poor performance in the environmental health policy and high pollution-related deaths are the major factors in the overall drop.
7. Other major causes include pollution from solid fuels, coal and crop residue burning and emissions from motor vehicles.
8. Increasingly degrading air quality in India is attributed to the growth in population, industrial production, and automotive transportation.

Concerns

Health

1. Air quality is the leading environmental threat to public health
2. Over the past decade, the deaths due to a large rise in ultra-fine PM 2.5 particles in the country.
3. An estimated 1.4 million premature deaths in India is due to Air pollution.

Economy

1. Health impacts cause a serious loss in welfare equivalent to about 8% of GDP in 2013.
2. The cost of labor productivity became 1.8% of GDP.
3. Environmental degradation particularly affects the poor and further degrades their standard of living.

Measures taken

Over the past few years, the government has set some ambitious targets for environmental protection as follows

1. Strict environmental standards for coal-fired power plants.
2. Bharat Stage VI emission norms to be implemented from April 1, 2020.
3. Initiatives to manufacture and sell electric vehicles in the country by 2030.
4. Revision of National Solar Mission.
5. Encouraging transition to renewable energy.
6. The target for solar capacity revised from 20GW to 100 GW by 2022.
7. Target to clean highly polluted Ganga by 2018.

Challenges

1. There is a huge gap between policy goals and enforcement.
2. On solar targets, India seems to be moving in the right path. However, balancing it with other goals is seriously lacking.
3. For example,

• The government has relaxed its promise of implementing strict power plant emission norms by December 2017.
• The 30% annual E-waste collection target by manufacturers has been relaxed to 10%.

1. The automobile industry has stated that full conversion to electric vehicles is possible only by 2047 which is in contrast to the government’s targets.
2. In the clean Ganga initiative, there have been delays in creating an action plan and lack of proper fund utilization.

Way forward

1. In order to address the environmental problems, there is a need to recognize the environmental costs of development.
2. Subsidies shall be given in order to accelerate the transition to renewable, particularly solar energy.
3. More polluting fuels should be priced higher.
4. The environmental standards for coal power plants should be strict.
5. Petrol and Diesel should be priced higher in order to aid the transition to electric vehicles.
6. More political will is required to effectively implement the existing environmental laws and regulations.
7. Considering India’s poor performance in the index, the government should take forward the environmental targets seriously.

Practice question

1. “India’s performance in the recent Environmental Performance Index was poor”. Discuss various reasons for the same and suggest suitable measures to improve India’s ranking.

Why in News?

1. Recently, India’s draft space activity bill, 2017 was unveiled
2. It aims at promoting and regulating the space activities in India
3. The legislation is expected to encourage both public and private players to participate in India’s space programme.

Why is there a need for a space law?

1. Currently, space activities are regulated by policies like Satellite communication policy, 2000 and Remote Sensing Data Policy, 2011. But there is a need for the proper legal environment for orderly performance and growth of the space sector.
2. Nations such as the USA, Russia, UK, etc. have their own space legislation. Even China and Japan are in the process of formulating their own domestic space legislation.
3. Earlier, ISRO was the sole player in the space sector. However lately, there have been many start-ups mushrooming in this sector, which calls for a regulatory mechanism and legislation to govern their activities.
4. Furthermore, the demand for Indian space products has been growing both in the country and outside the country. So it is necessary to include Indian industry and service providers in space activities under the technical guidance of the Department of Space (DOS) and the growth of the Indian space sector.
5. A legislation is required as India is obligated to UN outer space treaties which require signatories to have a national legislation in place.

What are the key features of the bill?

1. The provisions would be applicable to all citizens and also to those sectors which are engaged in space activity either inside or outside the country.
2. It provides for the grant of a non-transferrable license to those people engaged in commercial space activity.
3. It provides for the appropriate mechanisms for licensing, eligibility criteria and fees for the license.
4. Union government will have to maintain a register of space objects that are launched or to be launched around the earth.
5. It provides for technical support in order to facilitate commercial space activity.
6. It also provides for regulatory procedures for conduct and operation of space activity.
7. It provides for restrictions in sharing of details regarding the pricing of products created through space activity with any person or agency.
8. It provides for punishment for persons involved in illegal commercial space activities with imprisonment up to 3 years or fine more than Rs 1 crore or both
9. It also has provisions for the protection of IPR created through space activity.

Arguments favouring the bill

1. Definition: The bill clearly defines space players, licenses, violations, objects, people, and geography. It is also proposed to define detailed guidelines in consultation with stakeholders and industry bodies.
2. Promotion: The bill encourages non-governmental players to take the risk and invest in space activities in India. This will make India a commercial hub for space activities and generate jobs in the country.

Arguments against the bill

1. Clarity: Experts have criticized the bill for its lack of clarity on the use of space objects.
2. Regulation: It gives arbitrary power to the government for monitoring the research activities. This would scare away international investors from investing in the space sector of India.
3. Liability: The bill made the government non-liable for any harm caused by the commercial activities by the non-governmental players in space even though the government gives clearance for their involvement in the space activities.

Way forward

The bill is a welcome step in promoting the space sector. But to enable competitive ecosystem in the space sector there is a need to conduct a review of international best practices in managing the space value chain and inducting them within the Act.