💥Join UPSC 2027,2028 Mentorship (July Batch) + XFactor Notes & Microthemes PDF
Talk to Mentor

Civilsdaily

Login

Distribution: weekly

  • Areas under AFSPA regime reduced: Home Ministry

    The Union Home Ministry has considerably reduced the “disturbed areas” under the Armed Forces (Special) Powers Act (AFSPA) in Assam, Manipur and Nagaland.

    AFSPA: A Backgrounder

    • The AFSPA, 1958 came into force in the context of insurgency in the North-eastern States decades ago.
    • It provides “special power” to the Armed Forces applies to the Army, the Air Force and the Central Paramilitary forces etc.
    • It has been long contested debate whether the “special powers” granted under AFSPA gives total immunity to the armed forces for any action taken by them.

    Armed Forces (Special Powers) Act, 1958

    • Armed Forces Special Powers Act, to put it simply, gives armed forces the power to maintain public order in “disturbed areas.”
    • AFSPA gives armed forces the authority use force or even open fire after giving due warning if they feel a person is in contravention of the law.
    • The Act further provides that if “reasonable suspicion exists”, the armed forces can also arrest a person without warrant; enter or search premises without a warrant; and ban the possession of firearms.

    What are the Special Powers?

    The ‘special powers’ which are spelt out under Section 4 provide that:

    (a) Power to use force, including opening fire, even to the extent of causing death if prohibitory orders banning assembly of five or more persons or carrying arms and weapons, etc are in force in the disturbed area;

    (b) Power to destroy structures used as hide-outs, training camps, or as a place from which attacks are or likely to be launched, etc;

    (c) Power to arrest without warrant and to use force for the purpose;

    (d) Power to enter and search premises without a warrant to make arrest or recovery of hostages, arms and ammunition and stolen property etc.

    What are the Disturbed Areas?

    • A disturbed area is one that is declared by notification under Section 3 of the AFSPA.
    • As per Section 3, it can be invoked in places where “the use of armed forces in aid of the civil power is necessary”.

    Who can declare/notify such areas?

    • The Central Government or the Governor of the State or administrator of the Union Territory can declare the whole or part of the State or Union Territory as a disturbed area.
    • A suitable notification would have to be made in the Official Gazette.

    Presently ‘Disturbed Areas’

    • AFSPA is currently in force in Assam, Nagaland, Manipur, 3 districts of Arunachal Pradesh, and areas falling within the jurisdiction of 8 police stations in Arunachal Pradesh bordering Assam.
    • In Jammu and Kashmir, a separate law Armed Forces (Jammu and Kashmir) Special Powers Act, 1990 has been in force.

    AFSPA: Is it a License to Kill?

    While the operation of the Section has been controversial in itself, it has attracted much criticism when actions have resulted in the death of civilians.

    • Power to kill: Section 4 of the Act granted officers the authority to “take any action” even to the extent to cause the death.
    • Protection against prosecution: This power is further bolstered by Section 6 which provides that legal can be instituted against the officer, except with the previous sanction of the Central Government.

    Supreme Court’s Observations over AFSPA

    • These extra-judicial killings became the attention of the Supreme Court in 2016.
    • It clarified that the bar under Section 6 would not grant “total immunity” to the officers against any probe into their alleged excesses.
    • The judgment noted that if any death was unjustified, there is no blanket immunity available to the perpetrator(s) of the offense.
    • The Court further noted that if an offense is committed even by Army personnel, there is no concept of absolute immunity from trial by the criminal court constituted under the CrPC.

    Constitutionality of AFSPA

    • Attempts have been made to examine the constitutionality of the Act on the grounds that it is contravention to the:
    1. Right to Life and Personal Liberty (Article 21) and
    2. Federal structure of the Constitution since law and order is a State subject

    Recommendations to repeal AFSPA

    (1) Justice B.P. Jeevan Reddy Commission

    • The 2004 Committee headed by Justice B.P. Jeevan Reddy, the content of which has never officially been revealed by the Government, recommended that AFSPA be repealed.
    • Additionally, it recommended that appropriate provisions be inserted in the Unlawful Activities Prevention Act, 1967 (UAPA) instead.
    • It also recommended that the UAPA be modified to clearly specify the powers of the armed forces and paramilitary forces and grievance cells should be set up in each district where the armed forces are deployed.

    (2) ARC II

    • The Administrative Reforms Commission in its 5th Report on ‘Public Order’ had also recommended that AFSPA be repealed.
    • It recommended adding a new chapter to be added to the Unlawful Activities Prevention Act, 1967.
    • However, the recommendation was considered first and then rejected.

    Other issues with AFSPA

    (1) Sexual Misconduct by Armed Forces

    • The issue of violation of human rights by actions of armed forces came under the consideration of the Committee on Amendments to Criminal Law (popularly known as Justice Verma Committee) set up in 2012.
    • It observed that- in conflict zones, legal protection for women was neglected.

    (2) Autocracy

    • The reality is that there is no evidence of any action being taken against any officer of the armed forces or paramilitary forces for their excesses.

    Caution given by the Supreme Court

    A July 2016 judgment authored by Justice Madan B. Lokur in Extra Judicial Execution Victim Families Association quoted the “Ten Commandments” issued by the Chief of the Army Staff for operations in disturbed areas:

    1. Definite circumstances: The “power to cause death is relatable to maintenance of public order in a disturbed area and is to be exercised under definite circumstances”.
    2. Declaration preconditions: These preconditions include a declaration by a high-level authority that an area is “disturbed”.
    3. Due warning: The officer concerned decides to use deadly force on the opinion that it is “necessary” to maintain public order. But he has to give “due warning” first.
    4. No arbitrary action: The persons against whom the action was taken by the armed forces should have been “acting in contravention of any law or order for the time being in force in the disturbed area”.
    5. Minimal use of force: The armed forces must use only the “minimal force required for effective action against the person/persons acting in contravention of the prohibitory order.”
    6. Empathy with perpetrators: The court said that: the people you are dealing with are your own countrymen. All your conduct must be dictated by this one significant consideration.
    7. People friendliness: The court underscored how the Commandments insist that “operations must be people-friendly, using minimum force and avoiding collateral damage – restrain must be the key”.
    8. Good intelligence: It added that “good intelligence is the key to success”.
    9. Compassion: It exhorted personnel to “be compassionate, help the people and win their hearts and minds. Employ all resources under your command to improve their living conditions”.
    10. Upholding Dharma (Duty): The judgment ended with the final Commandment to “uphold Dharma and take pride in your country and the Army”.

    Conclusion

    • Despite demands by civil society groups and human rights activities, none of the recommendations have not been implemented to date.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Dam Safety Act can end disputes, says Supreme Court

    The Supreme Court has found in the Dam Safety Act of 2021 a panacea to end the “perennial” legal battle between Tamil Nadu and Kerala over the Mullaperiyar dam.

    What is the Dam Safety Act, 2021?

    • The Act comprehensively postulates for surveillance, inspection, operation and maintenance of dams to prevent disasters.
    • Its key features are as follows:
    1. National Committee on Dam Safety (NCDS): It will be constituted and will be chaired by the chairperson, Central Water Commission. Its’ functions will include formulating policies and regulations regarding dam safety standards and prevention of dam failures, analyzing the causes of major dam failures, and suggesting changes in dam safety practices.
    2. National Dam Safety Authority (NDSA): It will be headed by an officer, not below the rank of an Additional Secretary, to be appointed by the central government. The main task of this authority includes implementing the policies formulated by the NCD, resolving issues between State Dam Safety Organisations (SDSOs), or between an SDSO and any dam owner in that state, specifying regulations for inspection and investigation of dams.
    3. State Dam Safety Organisation (SDSO): Its functions will be to keep perpetual surveillance, inspection, monitoring the operation and maintenance of dams, keeping a database of all dams, and recommending safety measures to owners of dams.
    4. Dam Safety Unit: The owners of the specified dams are required to provide a dam safety unit in each dam. This unit will inspect the dams before and after the monsoon session, and during and after any calamity or sign of distress.
    5. Emergency Action Plan: Dam owners will be required to prepare an emergency action plan, and carry out risk assessment studies for each dam at specified regular intervals.
    6. Certain offences: The act provides for two types of offences – obstructing a person in the discharge of his functions, and refusing to comply with directions issued under the proposed law.

    Why in news?

    • Kerala and Tamil Nadu have been trading charges against each other over the safety, operation and maintenance of the Mullaperiyar dam.
    • While Kerala claims the 126-year-old dam is unsafe, badly maintained and a threat to thousands of people living downstream, Tamil Nadu denies it.
    • Kerala is pitching for a new dam in place of the existing one, while Tamil Nadu, which operates and maintains the reservoir, argues that the dam is well-preserved and so strong that the height water level could even be increased to 152 feet.

    What did the SC say?

    • A few days ago, the Supreme Court was in search of an answer to the “perennial problem” between the two neighbours over the dam.
    • It had mooted the idea of extending the powers of its own supervisory committee to take over charge of the safety and maintenance of the structure and its site.
    • The Bench even wondered whether the supervisory committee should now continue as the 2021 Act has made it redundant.
    • However, Kerala said the Centre was yet to appoint specialists to the NDSA.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • India to set up Maritime Rescue Co-ordination Centre (MRCC) in Colombo

    India and Sri Lanka have signed an MoU for the Indian public sector Bharat Electronics Ltd (BEL) to set up a state of the art Maritime Rescue Co-ordination Centre (MRCC) in Colombo.

    What is MRCC?

    • MRCCs are part of an international network under the UN’s International Maritime Organisation.
    • They aim to monitor the sea lanes with the objective of swift response to emergencies, such as vessels in distress, rescue and evacuation of people, and prevention of and containing environmental disasters such as oil spills.
    • Each country is responsible for its own Search and Rescue Region (SRR).
    • The work of MRCCs is co-ordinated by the Navy or Coast Guard in each country.
    • In India, the Coast Guard is the co-ordinating agency. In Sri Lanka, it is the Navy.
    • The MRCC will be established with a grant of $6 million from India.

    Benefits offered

    • MRCC enhances co-operation on maritime security between the two countries in a part of the Indian Ocean region where the India-China rivalry has taken centre stage over the last decade.
    • This engagement will augment interoperability and seamless maritime actions like carrying out anti-smuggling operations in the Indian Ocean Region.

    Why such a move by India?

    • Sri Lanka’s SRR is a wide swathe of 1,778,062. 24 sq kms of the Indian Ocean, and nearly 200 ships pass through these waters every day.
    • The MRCC agreement appears to be part of India’s SAGAR (Security and Growth for all in the Region) initiative in the Indian Ocean.

    Issues with MRCC

    • The MRCC has been controversial in Sri Lanka who see every development by India suspicious.
    • Sri Lanka’s Defence Ministry issued a clarification on the MRCC, as well as on recent agreements with India for a naval floating dock and Dornier aircraft.
    • The clarification has provided more details about the agreements than have been in the public domain so far.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Old Pension Scheme vs New Pension Scheme

    Many states are trying to restore Old Pension Scheme and discontinue the National Pension System (NPS).

    What is the Defined Pension Benefit Scheme (old)?

    • The scheme assures life-long income, post-retirement.
    • Usually the assured amount is equivalent to 50% of the last drawn salary.
    • The Government bears the expenditure incurred on the pension.
    • The scheme was discontinued in 2004.

    What is the National Pension System (NPS)?

    • The Union government under PM Vajpayee took a decision in 2003 to discontinue the old pension scheme and introduced the NPS.
    • The scheme is applicable to all new recruits joining the Central Government service (except armed forces) from April 1, 2004.
    • On the introduction of NPS, the Central Civil Services (Pension) Rules, 1972 was amended.

    Features of NPS

    • It is a scheme, where employees contribute to their pension corpus from their salaries, with matching contributions from the government.
    • The funds are invested in earmarked investment schemes through Pension Fund Managers.
    • At retirement, they can withdraw 60% of the corpus, which is tax-free and the remaining 40% is invested in annuities, which is taxed.
    • It can have two components — Tier I and II.
    • Tier-II is a voluntary savings account that offers flexibility in terms of withdrawal, and one can withdraw at any point of time, unlike Tier I account.
    • Private individuals can opt for the scheme.

    What were the changes introduced in 2019?

    • In 2019, the Finance Ministry said that Central government employees have the option of selecting the Pension Funds (PFs) and Investment Pattern in their Tier-I account.
    • The default pension fund managers are the LIC Pension Fund Limited, SBI Pension Funds Pvt. Limited and UTI Retirement Solutions Limited in a predefined proportion.

    Who is the regulatory authority?

    • The Pension Fund Regulatory and Development Authority (PFRDA) is the regulator for NPS.
    • PFRDA was set up through the PFRDA Act in 2013 to promote old age income security by developing pension funds to protect the interest of subscribers to schemes of pension funds.

    What is the subscriber base?

    • As on February 28, there were 22.74 lakh Central government employees and 55.44 lakh State government employees enrolled under the NPS.

    Why in news now?

    • In Feb, Rajasthan CM announced restoration of the old pension scheme for the government employees, who joined the service on or after January 1, 2004.
    • The announcement meant that the National Pension System (NPS) would be discontinued in the State.
    • The center had maintained that restoration of the old system would cause an unnecessary financial burden on the government.

    Cons of NPS

    • Forfeiture of pension: The NPS scheme was created by the Government of India, in order to stop all the defined pension related benefits that it gave to its employees.
    • Withdrawal restrictions: NPS restricts all kinds of withdrawals, before the subscriber reaches the age of 60 years.
    • No tax benefits: The NPS corpus, which the subscriber can use for buying annuity or for drawing pensions, is taxable, when the schemes matures.
    • Limit on investment: The subscriber cannot invest more than 50% of his or her total investment in the NPS account, towards the equities.
    • No guarantee: While NPS is a government scheme, the corpus is created according to the returns, which are generated under the corporate bonds, government securities, and equity.

    Try this PYQ:

    Q.Who among the following can join the National Pension System (NPS)?

    (a) Resident Indian citizens only

    (b) Persons of age from 21 to 55 only

    (c) All-State Government employees joining the services after the date of notification by the respective State Governments

    (d) All Central Governments Employees including those of Armed Forces joining the services on or after 1st April 2004

     

    [wpdiscuz-feedback id=”2nr2jt9g7y” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • FASTER digital platform for Judiciary

    ‘FASTER’, an abbreviation of ‘Fast and Secured Transmission of Electronic Records’, a digital platform was formally launched by Chief Justice of India (CJI) N.V. Ramana.

    What is FASTER?

    • The FASTER system proposes transmission of e-authenticated copies of the interim orders, stay orders, bail orders and record of proceedings to the duty-holders for compliance and due execution, through a secured electronic communication channel.
    • These orders may vary from stay of execution of a person to freeze on the demolition of a slum to bail orders for undertrial prisoners.
    • The idea stemmed from a case reported about several prisoners in the Agra Jail forced to remain behind bars for three days after the hard copies of the order had not reached the prison officials.

    Benefits offered

    • FASTER would aid the cause of quick and effortless justice.
    • The timely delivery of the court’s orders to the authorities would also prevent unnecessary arrests and custody of people who have already been granted anticipatory bail.
    • For smooth transmission of court’s orders and effective implementation of Article 21, Right to Life, such a system was the need of the hour.

     

    Also read:

    [RSTV Archive] Judiciary & Artificial Intelligence

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • The Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Bill, 2021

    Context

    The Lok Sabha has approved a Bill to amend the Chartered Accountants Act, 1949, the law that governs the Institute of Chartered Accountants of India (ICAI).

    What are the changes proposed in the Bill?

    • Introduced in the Lok Sabha on December 17, 2021, and titled the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Bill, 2021.
    • The key changes it proposes are in the area of discipline and governance and administration.
    • 1] Discipline: The ICAI’s disciplinary committee and board of discipline will be chaired by non-chartered accountants (CA),
    • Its elected council members will no longer be in a majority in them.
    • 2] Governance and administration: The term of the ICAI’s Council will be raised from three to four years, the maximum number of consecutive terms for its elected members will be reduced to two from the current three;
    • The ICAI’s Secretary will replace the ICAI’s president as its chief executive and perform the functions to be specified;
    • The ICAI will appoint its auditor from the Comptroller and Auditor-General of India’s panel of CA firms;
    • The Government will form a coordination committee for the ICAI and the Institutes of Cost Accountants and Company Secretaries of India.
    • The Parliamentary Standing Committee on Finance has endorsed these changes and has further recommended an end to the ICAI’s monopoly in certification.

    Challenges facing Chartered Accountancy and ICAI

    1] Lacking critical thinking and analytical ability

    • Senior industry managers say that many CAs do not have what it takes to succeed in the corporate world, i.e., analytical ability, critical thinking, appreciation of the business context, grasp of technology, and communication and presentation skills.
    • CA students do not have in-class interaction.
    • Also, the coaching is focused on cracking examinations rather than facilitating understanding and application.

    2] Poor record in disciplining members

    • The ICAI’s record in disciplining its members is even more problematic.
    • There have been persistent complaints that the ICAI is lax in acting against errant members.
    •  In 2018, the Government had set up the National Financial Reporting Authority as India’s first independent regulator of accounting and audit.
    • The proposed changes in the composition of the ICAI’s disciplinary arms will further limit its role.
    • As a result, the ICAI will be effectively reduced to an examination board.

    3] ICAI failed to keep pace with changes

    • The ICAI was set up in 1949, largely as the Indian version of the U.K. institute
    •  Much of the work that CAs do and clamour for is a remnant of the licence raj.
    • Many businesses and professions have changed beyond recognition as a result of the economic reforms initiated in 1991.
    •  The demutualised and technology-driven National Stock Exchange of India has transformed stock-broking.
    • Indian IT and pharma companies now compete successfully with the best in the world.
    • In contrast, CA has not kept pace with the changes in India’s dynamic economy and changing society.
    • Overseas accountancy qualifications such as the Association of Chartered Certified Accountants (ACCA) and Chartered Institute of Management Accountants (CIMA) are gaining popularity in India, perhaps because they are recognised worldwide, are more relevant to current and future needs, and are accepted even in India by global companies and global accounting firms.

    4] Challenges posed by technology such as AI/ML

    • Accounting and auditing are more amenable to the replacement of humans by technology.
    • AI, robotics, and other technological advances are likely to reduce the need for human intervention in accounting.
    • Also, recent administrative reforms aimed at enabling ease of doing business and ease of living, such as faceless tax assessment, easy filing of tax returns, prompt refunds, rising threshold for tax audit, and abolition of Goods and Services Tax audit have greatly reduced the availability of captive, government-mandated, make-work business for CAs.

    Way forward

    • Setting IIAs: The Parliamentary Committee’s suggestion to set up a string of Indian Institutes of Accounting (IIAs) on the lines of the Indian Institutes of Technology (IIT) and the Indian Institutes of Management (IIM) is innovative.
    • At one level, they will end the ICAI’s statutory monopoly over certification.
    • More competition should result in better quality and higher standards of conduct.

    Conclusion

    The Bill and the Parliamentary Committee’s report can be seen as efforts to drag the ICAI to the contemporary world. It would be wise to read the proposed changes as a warning and respond maturely.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • India’s Lithium Dependency Worries

    Lithium has been among the most sought-after mineral during the past few years, largely on the back of its usage in battery manufacturing.

    India is at odds with a major import source for the mineral, China.

    About Lithium

    • Lithium is a chemical element with the symbol Li and atomic number 3.
    • It is a soft, silvery-white alkali metal. Under standard conditions, it is the lightest metal and the lightest solid element.
    • Like all alkali metals, lithium is highly reactive and flammable and must be stored in mineral oil.
    • When cut, it exhibits a metallic lustre, but moist air corrodes it quickly to a dull silvery grey, then black tarnish.
    • Lithium metal is isolated electrolytically from a mixture of lithium chloride and potassium chloride.
    • It is a crucial building block of the lithium-ion rechargeable batteries that power electric vehicles (EVs), laptops and mobile phones.

    Lithium-ion batteries

    • A lithium-ion battery or Li-ion battery is a type of rechargeable battery.
    • They are commonly used for portable electronics and electric vehicles and are growing in popularity for military and aerospace applications.
    • A prototype Li-ion battery was developed by Akira Yoshino in 1985, based on earlier research by John Goodenough, M. Stanley Whittingham, Rachid Yazami and Koichi Mizushima during the 1970s–1980s.
    • In 2019, the Nobel Prize in Chemistry was given to this trio “for the development of lithium-ion batteries”.

    Global producers of lithium

    • Australia and Chile have swapped positions as the world’s leading lithium-producing country over the past decade. In 2019, the world’s Top 5 lithium producers were:
    1. Australia – 52.9% of global production
    2. Chile – 21.5%
    3. China – 9.7%
    4. Argentina – 8.3%
    5. Zimbabwe – 2.1%
    • The U.S. ranked 7th with 1.2% of the world’s lithium production.
    • In 2019, the world’s Top 5 lithium reserves by country were:
    1. Chile – 55.5% of the world’s total
    2. Australia – 18.1%
    3. Argentina – 11.0%
    4. China – 6.5%
    5. U.S. – 4.1%

    Why is India looking for lithium?

    • India has been scouting for lithium reserves since the Centre’s push to boost the adoption of electric vehicles (EVs) in the country.
    • The ₹18,000 crore production-linked incentive scheme for advanced chemistry cell (ACC) battery storage, a flagship incentive scheme for the industry has kicked off.
    • However, the supply of lithium, which is largely an imported product, has declined.
    • With India being in a diplomatic tussle with China, the supplies from the neighbouring country have declined and India too is looking for other import avenues.

    Why has the supply of lithium declined?

    • The supply of lithium has not been in line with the surge in demand from electric vehicle makers across the world.
    • China also is witnessing a mismatch between demand and supply, which has led to a rise in prices.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • What is Project NETRA?

    The Indian Space Research Organisation (ISRO) is building up its orbital debris tracking capability by deploying new radars and optical telescopes under the Network for Space Objects Tracking and Analysis (NETRA) project.

    Project NETRA

    • The project will give India its own capability in space situational awareness (SSA) like the other space powers — which is used to ‘predict’ threats from debris to Indian satellites.
    • NETRA’s eventual goal is to capture the GEO, or geostationary orbit, scene at 36,000 km where communication satellites operate.
    • The initial SSA will first be for low-earth orbits or LEO which have remote-sensing spacecraft.
    • Under NETRA the ISRO plans to put up many observational facilities: connected radars, telescopes; data processing units and a control centre.
    • They can, among others, spot, track and catalogue objects as small as 10 cm, up to a range of 3,400 km and equal to a space orbit of around 2,000 km.
    • The NETRA effort would make India a part of international efforts towards tracking, warning about and mitigating space debris.

    What NETRA consists of?

    • In the plans are a high-precision, long range telescope in Leh and a radar in the North East.
    • Along with them, we will also use the Multi-Object Tracking Radar (MOTR) that we have put up at the Satish Dhawan Space Centre in Sriharikota, and the telescopes at Ponmudi and Mount Abu to get a broad SSA picture.
    • NORAD, or the North American Aerospace Defense Command, is an initiative of the U.S. and Canada that shares selective debris data with many countries.
    • The new SSA centre would consolidate debris tracking activities that are now spread across ISRO centres.
    • Currently there are 15 functional Indian communication satellites in the geostationary orbit of 36,000 km; 13 remote sensing satellites in LEO of up to 2,000 km; and eight navigation satellites in medium earth orbits.

    Why Space debris matters?

    • Space junk or debris consists of spent rocket stages, dead satellites, fragments of space objects and debris resulting from ASAT.
    • Hurtling at an average speed of 27,000 kmph in LEO, these objects pose a very real threat as collisions involving even centimetre-sized fragments can be lethal to satellites.
    • Last year, ISRO monitored 4,382 events in LEO and 3,148 events in the geostationary orbit where space objects closely approached Indian assets.
    • Fragments from the Fengyun-1C satellite (part of the anti-satellite test (ASAT) by China in 2007) and the Cosmos 2251-Iridium satellite collision in 2009 accounted for the maximum number of these threats.
    • The observations also covered 84 “close approaches of less than one km” between Starlink satellites and Indian assets.

    Enhancing Space situational awareness (SSA)

    • India, as a responsible space power, should have SSA as a part of a national capability, as in the U.S. This is a vital requirement for protecting our space assets and a force multiplier.
    • The SSA has a military quotient to it and adds a new ring to the country’s overall security.
    • It uses satellites, ground and air radars to secure its two countries against attacks from air, space or sea.
    • With long-range tracking radars, the SSA also provides us the capability of an early warning system against ballistic missiles coming in at a height.
    • Apart from radars and telescopes, he said India should also think of deploying satellites that track other satellites — as the U.S. and other space powers had done.
    • Combined with other elements of military intelligence SSA would help us to understand motives behind any suspicious orbit changes of other satellites and to know if they were spying on or harming our spacecraft.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • [Sansad TV] Perspective – NLMC: Utilising Unused Land

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

    Context

    Earlier this month, the Union Cabinet has approved the setting up of the National Land Monetization Corporation (NLMC) to monetize surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other agencies linked to the Government.

    In this article, we will study how effective is this going to be, considering land monetization is a complex process, what potential challenges could NLMC face in the whole process, what roles and responsibilities will this separate agency be entrusted with?

    What is NLMC?

    • The NLMC will be a firm, fully owned by the government, to carry out the monetisation of government and public sector assets in the form of surplus, unused or underused land assets.
    • It will fall under the administrative jurisdiction of the Ministry of Finance.
    • It will be set up with an initial authorised share capital of ₹5,000 crore and a paid-up capital of ₹150 crore.
    • Surplus land and building assets of CPSEs are expected to be transferred to the NLMC, which will then hold, manage and monetise them.

    Functions of NLMC

    The NLMC will-

    1. Monetize underutilised or unused land parcels of Central Public Sector Enterprises (CPSEs)
    2. Facilitate the monetisation of assets belonging to PSUs that have ceased operations or are in line for a strategic disinvestment
    3. Act as an advisory body and support other government entities and CPSEs in identifying their surplus non-core assets

    Benefits offered

    • Speeding up disinvestment: The setting of the NLMC will speed up the closure process of the CPSEs and smoothen the strategic disinvestment process.
    • Productive utilization of stagnant assets: It will also enable productive utilisation of these under-utilised assets by setting in motion private sector investments.
    • Easing up of finances: It will boost new economic activities such as industrialisation, boosting the local economy by generating employment and generating resources for potential economic and social infrastructure.
    • Maximum value realization: It will help monetising them in an efficient and professional manner, maximising the scope of value realisation.

    What does monetization mean?

    • When the government monetises its assets, it essentially means that it is transferring the revenue rights of the asset (could be idle land, infrastructure, PSU) to a private player for a specified period of time.
    • In such a transaction, the government gets in return an:
    • Upfront payment from the private entity
    • Regular share of the revenue generated from the asset
    • Promise of steady investment into the asset, and
    • Title rights to the monetised asset

    Why need monetization?

    There are different reasons why the government monetizes its assets.

    • Revenue shortfall: One of them is to create new sources of revenue.
    • Pandemic damage control: The economy has already been hit due to the coronavirus pandemic and revenues are essential to fulfil the Modi government’s target of achieving a $5 trillion economy.
    • Risk management: Monetisation is also done to unlock the potential of unused or underused assets by involving institutional investors or private players.
    • Capital generation: It is also done to generate resources or capital for future asset creation, such as using the money generated from monetisation to create new infrastructure projects.

    Need for NLMC

    • Professional dealing in negotiations: The firm will hire professionals from the private sector with a merit based approach
    • Market expertise: Asset monetisation of real estate requires expertise in valuation of property, market research, investment banking, land management, legal diligence and other related skill sets.
    • Global best practices: NLMC will undertake monetisation as an agency function and is expected to act as a directory of best practices in land monetisation.

    How much land is currently available for monetization?

    • According to the Economic Survey 2021-2022, as of now, CPSEs have put nearly 3,400 acres of land on the table for potential monetisation.
    • They have referred this land to the Department of Investment and Public Asset Management (DIPAM).
    • As per the survey, monetisation of non-core assets of PSUs such as MTNL, BSNL, BPCL, B&R, BEML, HMT Ltd, Instrumentation Ltd etc. are at different stages.

    Challenges to the NLMC

    (a) Volatile market situation

    • The performance and productivity of the NLMC will also depend on the government’s performance on its disinvestment targets.
    • For example, the Life Insurance Corporation IPO, which was supposed to raise ₹60,000 crore is now shrouded in uncertainty owing to the Russia-Ukraine crisis making stock markets volatile.
    • If the IPO does not hit the markets by the end of March, the government would be missing its disinvestment targets by a wide margin.

    (b) Issues with the transfer of rights

    • The process of asset monetisation does not end when the government transfers revenue rights to private players.
    • Identifying profitable revenue streams for the monetised land assets, ensuring adequate investment by the private player and setting up a dispute-resolution mechanism are also important tasks.

    (c) Unattractiveness of PPP Model

    • Posing as another potential challenge would be the use of Public Private Partnerships (PPPs) as a monetisation model.
    • For instance, the results of the Centre’s PPP initiative launched in 2020 for the Railways were not encouraging.
    • It had invited private parties to run 150 trains of the Indian Railways but when bids were thrown open, nine clusters of trains saw no bidders.

    Criticisms of NLMC

    • It militates philosophy of privatisation: PM has propounded more than once: the business of government is not business. Setting up a CPSE to help sell or shut down the existing CPSEs doesn’t appear quite congruous.
    • Privatisation process is not new: Dozens of companies have been sold; in many more, minority stakes have been offloaded. So, if the existing process has served so well, why try something new?
    • Conflict of interest: NLMC may have a turf war with the Department of Investment and Public Asset Management (DIPAM) which is tasked with similar functions.  
    • Nature of NLMC: The government organs tend to acquire a life of their own.  The National Anti-Profiteering Authority (NAA) is a case in point. It was supposed to be wound up in two years but still getting extensions.
    • Public land being sold: Publicly owned lands in a democracy are literally owned by the public. They are held in trust on behalf of the public by governments or government agencies.
    • Sale of crucial assets: Land holdings are one of the government’s most significant tangible assets, whether owned by central ministries, state governments, public sector undertakings or local bodies.

    Way forward

    • There is a need to monetise non-core unused and under-used assets that would help the government generate substantial revenues.
    • For CPSEs undergoing strategic disinvestment or closure, monetisation of these stagnant surplus land and non-core assets is important to unlock their value.
    • There is a need to create a comprehensive inventory of public land and synergize the existing Government Land Information System (GLIS).

  • Rhino population up by 200 in Kaziranga

    The population of the greater one-horned or Indian rhinoceros in the Kaziranga National Park and Tiger Reserve has increased by 200 (from 2413 in 2018) in four years, the latest census of the flagship animal has revealed.

    About Indian Rhino

    • The Indian rhinoceros also called the greater one-horned rhinoceros and great Indian rhinoceros is a rhinoceros native to the Indian subcontinent.
    • It is listed as Vulnerable on the IUCN Red List and Schedule I animal in the Wildlife Protection Act, 1972.
    • It once ranged across the entire northern part of the Indian Subcontinent, along the Indus, Ganges and Brahmaputra River basins, from Pakistan to the Indian-Myanmar border.
    • Poaching for rhinoceros horn became the single most important reason for the decline of the Indian rhino.

    Why are Rhinos poached for horns?

    • Ground rhino horn is used in traditional Chinese medicine to cure a range of ailments, from cancer to hangovers, and also as an aphrodisiac.
    • In Vietnam, possessing a rhino horn is considered a status symbol.
    • Due to demand in these countries, poaching pressure on rhinos is ever persistent against which one cannot let the guard down.

    Try this PYQ:

    Q. Consider the following statements:

    1. Asiatic lion is naturally found in India only.
    2. Double-humped camel is naturally found in India only.
    3. One-horned rhinoceros is naturally found in India only.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

     

    [wpdiscuz-feedback id=”fp1gk14f8l” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)