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  • Places in news: Buxa Tiger Reserve

    In a major success for tiger conservation, a photograph of a tiger was captured in a camera trap in West Bengal’s Buxa Tiger Reserve since 1998.

    Locate all major tiger reserves in India.

    Buxa Tiger Reserve

    • Buxa Tiger Reserve is a tiger reserve in northern West Bengal, India, covering an area of 760 km2 (290 sq mi).
    • In altitude, it ranges from 60 m in the Gangetic Plains to 1,750 m bordering the Himalayas in the north.
    • Its northern boundary runs along the international border with Bhutan.
    • The Sinchula hill range lies all along the northern side of BTR and the eastern boundary touches that of the Assam state.

    Key features of BTR

    • It is the easternmost extension of extreme bio-diverse North-East India and represents highly endemic Indo-Malayan region.
    • The fragile “Terai Eco-System” constitutes a part of this reserve.
    • The Phibsoo Wildlife Sanctuary of Bhutan is contiguous to the north of BTR.
    • It serves as an international corridor for Asian elephant migration between India and Bhutan.

     

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  • Goods and Services Tax as an unfinished agenda

    Context

    Seen purely from a revenue point of view and as a fiscal policy tool, India’s GST is still on a rocky road.

    Background

    • The GST was launched by India on the midnight of July 1, 2017.
    • Benefits of GST: Hailed as a landmark reform in India’s tax history, it was expected to improve tax-GDP ratio, end tax cascading, enhance efficiency, competitiveness, growth, and ensure lower prices.
    • Fiscal federalism: It was also projected as a watershed in India’s fiscal federalism.
    • the States have forgone a substantial part of their own tax revenue.
    • States were in turn guaranteed a GST compensation assuring 14% growth in their GST revenue during the initial five years.
    • India’s GST architecture: India’s GST architecture is built on the firm foundations of a GST Council and the GST Network (GSTN).
    • GST Council as due federal process: The first is the key decision-making body, chaired by the Union Finance Minister with a Minister of State in charge of Finance and the Finance Ministers of States as members.
    • This is envisaged as a due federal process to protect the interests of the States.

    Unresolved issues

    [1] Revenue neutrality not achieved

    • India’s GST paradigm stands on two key pillars: revenue neutrality and GST compensation for the States.
    • The assured revenue neutrality remains a mirage and many States have experienced a declining tax-GDP ratio.
    • Decline in tax to GDP ratio of state: In the case of major 18 States, the ratio of own tax revenue to GDP has declined.
    • While the share of the Centre in total GST increased by 6%, that of States put together lagged behind with only a 4.5% increase.
    • Stark differences between the Revenue Neutral Rates (RNR) for the producing States and consumption State have been observed. States producing exempted food grains also lost out.
    • Since the rates were lower under GST vis-à-vis the VAT regime, revenue neutrality was not adhered ab initio.
    • The problems were compounded with massive evasion following the dismantling of check posts, and later on fake invoices, that grew by leaps and bounds.
    • Experience of other countries: The South African experience illustrates how zero-rating and large exemptions have defeated revenue goals.
    • Canadian experience shows that GST could be improved by limiting zero rating, tax-exemptions and harmonising tax rates.
    • The resilience of the economy at the time of rolling out of GST is critical for its wider reception as the Australian experience shows.

    [2] Not conducive to co-operative federalism

    • While the States collectively forewent 51.8% of their total tax revenue, the Centre surrendered only 28.8%.
    • Yet, GST is shared equally between the Centre and States despite two expert committees recommended for a higher share for the States.
    • Given the revenue neutrality failure and the host of other issues, many of the States are left with no option except to depend on GST compensation.
    • This is not conducive to sustainable co-operative federalism.

    [3] Need for revenue sharing formula for IGST

    • Although IGST is a key source of revenue for many of the States, the clearing house mechanism and the process therein remains unknown territory.
    •  It was pointed out that GST is discriminatory to manufacturing States, indicating the need for a revenue sharing formula that duly incentivises exporting States by sharing IGST revenue among three parties instead of two.

    [4] Other issues

    • Swift functioning of Input tax credit: The Malaysian experience demonstrates the need for swift and transparent functioning of the input tax credit system through a flawless IT infrastructure.
    • We operate in an almost information vacuum especially with respect to IGST along with several glitches in the digital architecture.
    • GSTN is now in the doldrums.
    • Data monopoly: It neither makes effective use of the massive and invaluable data being generated nor shares them to enable others to make use of them.
    • Such practice in “data monopoly” was a fact of history in India’s statistical system and has to go sooner rather than later.
    • Australia, having several similarities with India, in terms of Centre and the subnational units, and destination-based, multi-stage tax with input credit provisions, has not been revenue-buoyant.
    • It is a matter for consideration whether widening exemptions and the replacing of income-tax by GST in the case of small and medium enterprises are advisable measures in the Indian context.

    Consider the question “What are the challenges facing the GST in India? What India can learn from the experience of other countries’ experience.”

    Conclusion

    Despite many years of efforts in evolving an Indianised GST system and over 50 months of adjustments with over a thousand notifications, with accompanying uncertainties in the first year and the novel coronavirus pandemic and the lockdown still in the saddle, GST continues to be an unfinished agenda. But how far and how long?

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  • [pib] Global Methane Initiative (GMI)

    India has co-chaired along with Canada the Global Methane Initiative leadership meet held virtually.

    About Methane

    • Methane is a greenhouse gas, which is also a component of natural gas.
    • There are various sources of methane including human and natural sources.
    • The anthropogenic sources are responsible for 60 per cent of global methane emissions.
    • It includes landfills, oil and natural gas systems, agricultural activities, coal mining, wastewater treatment, and certain industrial processes.
    • The oil and gas sectors are among the largest contributors to human sources of methane.
    • These emissions come primarily from the burning of fossil fuels, decomposition in landfills and the agriculture sector.

    Global Methane Initiative (GMI)

    • GMI is a voluntary Government and an informal international partnership having members from 45 countries including the United States and Canada.
    • The forum has been created to achieve global reduction in anthropogenic methane emission through partnership among developed and developing countries having economies in transition.
    • The forum was created in 2004 and India is one of the members since its inception and has taken up Vice-Chairmanship for the first time in the Steering Leadership along with USA.
    • National governments are encouraged to join GMI as Partner Countries, while other non-State organizations may join GMI’s extensive Project Network.

    Focus areas

    The initiative currently focuses on five sectors, which are known sources of anthropogenic methane emissions:

    1. Agriculture
    2. Coal mining
    3. Municipal solid waste
    4. Municipal wastewater
    5. Oil and gas systems

    Why focus on Methane?

    • The emission of methane is a big concern as it is a greenhouse gas having 25-28 times harmful effect than carbon dioxide
    • According to the UN, 25 % of the warming that the world is experiencing today is because of methane.
    • Methane is the second-most abundant greenhouse gas in the atmosphere, after carbon dioxide.
    • According to IPCC, methane accounts for about half of the 1.0 degrees Celsius net rise in global average temperature since the pre-industrial era.

    Back2Basics: CO2 Equivalents

    • Each greenhouse gas (GHG) has a different global warming potential (GWP) and persists for a different length of time in the atmosphere.
    • The three main greenhouse gases (along with water vapour) and their 100-year global warming potential (GWP) compared to carbon dioxide are:

    1 x – carbon dioxide (CO2)

    25 x – methane (CH4) – I.e. Releasing 1 kg of CH4into the atmosphere is about equivalent to releasing 25 kg of CO2

    298 x – nitrous oxide (N2O)

    • Water vapour is not considered to be a cause of man-made global warming because it does not persist in the atmosphere for more than a few days.
    • There are other greenhouse gases which have far greater global warming potential (GWP) but are much less prevalent. These are sulphur hexafluoride (SF6), hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs).
    • There are a wide variety of uses for SF6, HFCs, and PFCs but they have been most commonly used as refrigerants and for fire suppression.
    • Many of these compounds also have a depleting effect on ozone in the upper atmosphere.

     

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  • NASA’s Imaging X-Ray Polarimetry Explorer (IXPE) Mission

    NASA has launched a new mission named Imaging X-ray Polarimetry Explorer or IXPE.

    About IXPE

    • IXPE observatory is a joint effort of NASA and the Italian Space Agency.
    • The mission will study “the most extreme and mysterious objects in the universe – supernova remnants, supermassive black holes, and dozens of other high-energy objects.”
    • The mission’s primary length is two years and the observatory will be at 600 kilometers altitude, orbiting around Earth’s equator.
    • IXPE is expected to study about 40 celestial objects in its first year in space.

    What are the instruments onboard?

    • IXPE carries three state-of-the-art space telescopes.
    • Each of the three identical telescopes hosts one light-weight X-ray mirror and one detector unit.
    • These will help observe polarized X-rays from neutron stars and supermassive black holes.
    • By measuring the polarization of these X-rays, we can study where the light came from and understand the geometry and inner workings of the light source.
    • This new mission will complement other X-ray telescopes such as the Chandra X-ray Observatory and the European Space Agency’s X-ray observatory, XMM-Newton.

    Why is it important?

    The mission will help scientists answer questions such as:

    • How do black holes spin?
    • Was the black hole at the center of the Milky Way actively feeding on surrounding material in the past?
    • How do pulsars shine so brightly in X-rays?
    • What powers the jets of energetic particles that are ejected from the region around the supermassive black holes at the centers of galaxies?

     

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  • [pib] Saryu Nahar National Project

     

    PM will inaugurate the Saryu Nahar National Project.

    Saryu Nahar National Project

    • The Project involves the interlinking of five rivers – Ghaghara, Saryu, Rapti, Banganga and Rohini to ensure optimum usage of water resources of the region.
    • It will benefit nine districts of Eastern Uttar Pradesh namely – Bahraich, Shravasti, Balrampur, Gonda, Siddharthnagar, Basti, Sant Kabir Nagar, Gorakhpur and Maharajganj.
    • The sub canals with a length of 6,600km have been linked to the 318km main canal.
    • The work on the project started in 1978 but due to lack of continuity, it got delayed and was not completed even after nearly four decades.

    Benefits offered

    • The project will provide assured water for irrigation of over 14 lakh hectares of land and benefit about 29 lakh farmers of over 6200 villages.
    • The farmers of the region, who were the worst sufferers of the inordinate delay in the project, will now immensely benefit from the upgraded irrigation potential.
    • They will now be able to grow crops on a larger scale and maximize the agri-potential of the region.

    Back2Basics: Sarayu River

    • The Sarayu is a river that originates at a ridge south of Nanda Kot mountain in Bageshwar district in Uttarakhand.
    • It flows through Kapkot, Bageshwar, and Seraghat towns before discharging into the Sharda River at Pancheshwar at the India—Nepal border.
    • Lower Ghaghara is also popularly known as Sarayu in India.
    • Especially while it flows through the city of Ayodhya, the birthplace of legendary Rama.

     

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  • Suspension of MPs for entire Winter Session is worrying

    Context

    Twelve members of the Rajya Sabha were suspended for their alleged involvement in the grave disorder in the House on the last day of the previous session.

    What do Rajya Sabha’s rules of procedure say about the suspension of a member?

    • Rule 256 of Rajya Sabha’s rules of procedure provides for the suspension of a member who disregards the authority of the chair or abuses the rules of the council by persistently and willfully obstructing the business of the House.
    • Persistent and willful obstruction of the business of the House is the crux of the offence.
    • What is the maximum period of suspension? Suspension can be for a period not exceeding the remainder of the session.
    • This would mean that if the member is suspended on the last day of the session, the period of suspension will be only a day.
    • So, even if a government would like to suspend such a member for a longer period. it would not be possible under the present rule.
    • Unless the House itself revokes the suspension nothing can be done about it.
    • The decision of the House is final.
    • Every legislature has the power to suspend its members if they cause disorder and obstruct the business of the House.
    • But the rule of suspension is rarely invoked in parliaments in mature democracies.

    Whether the existing rules permit such a course of action?

    • Rule 256 says that the chairman may, if he deems it necessary, name a member who either disregards the authority of the chair or abuses the rules of the House by persistently and willfully obstructing the business of the House.
    • Sub Rule 2 of this rule is of very great importance in the context of the main question, namely, whether a member can be suspended in the next session for creating disorder in the previous session.
    • No adjournment is allowed: It clearly says no adjournment is allowed, which means the matter of suspension cannot be adjourned to a later period.
    • It needs to be decided then and there.
    • A member who abuses the rules of the House by persistently and willfully obstructing its business needs to be punished swiftly.
    • No adjournment is allowed at all.

    The powers of the House to regulate its internal matters

    • It can be said that the rule under which the members were suspended does not actually permit it.
    • Absolute power to interpret rule: The House is supreme in these matters and the chair has absolute powers to interpret the rules.
    • The judiciary has time and again clarified that the House has absolute powers to regulate its internal matters.
    • Suspension of a member is such a matter.
    • The judiciary will intervene only when a patently unconstitutional act is done by the House.

    Conclusion

    The solution to disruptions does not lie in suspension. That is the lesson we should learn from past experience.

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  • Tobacco Consumption in India

    Tobacco use is known to be a major risk factor for several non-communicable diseases in India.

    Tobacco abuse in India

    • In India, 28.6% of adults above 15 years and 8.5% of students aged 13-15 years use tobacco in some form or the other.
    • This makes the country the second-largest consumer of tobacco in the world.

    Concern: No action against Tobacco

    • India bears an annual economic burden of over ₹1, 77,340 crores on account of tobacco use.
    • There has been no major increase in taxation of tobacco products to discourage the consumption of tobacco in the past four years since the introduction of GST.
    • Only in 2020-21, the Union Budget had the effect of increasing the average price of cigarettes by about 5%.
    • Yet, the excise duty on tobacco in India continues to remain extremely low.

    A worrying trend

    • No increase in tax: The absence of an increase in tax means more profits for the tobacco industry and more tax revenue foregone for the government.
    • Revenue losses: This revenue could have easily been utilized during the COVID-19 pandemic.
    • Losses due to GST: There has been a 3% real decline in GST revenues from tobacco products in each of the past two financial years.

    Present governance of Tobacco

    • GST slab: Tobacco at present is a highly taxed commodity. It is kept in the 28% GST slab (other than for tobacco leaves which is taxed at 5%).
    • Heavy cess: Tobacco and its various forms are also subject to a heavy burden of cess, given that the commodity is seen as a sin good.
    • Statutory warning: The government also uses pictures of cancer patients on the packages of cigarettes to discourage its use.

    Federal issues

    • Excise taxes on many tobacco products used to be regularly raised in the annual Union Budgets before the GST.
    • Similarly, several State governments used to regularly raise value-added tax (VAT) on tobacco products.
    • During the five years before the introduction of the GST, most State governments had moved from having a low VAT regime on tobacco products to having a high VAT regime.

    Implication of such policies

    • Increased consumption: The lack of tax increases in post-GST years might mean that some current smokers smoke more now and some non-smokers have started smoking.
    • Reverse trend in decline: This could potentially lead to a reversal of the declining trend in prevalence.
    • Affordability: Tobacco products are more affordable post-GST as shown in recent literature from India.
    • Missing up national target: This might jeopardise India’s commitment to achieving 30% tobacco use prevalence reduction by 2025 as envisaged in the National Health Policy of 2017.

    Way forward

    • Several countries in the world have high excise taxes along with GST or sales tax and they are continuously being revised.
    • We must adhere to the WHO recommendation for a uniform tax burden of at least 75% for each tobacco product.
    • The Union government should take a considerate view of public health and significantly increase excise taxes — either basic excise duty or NCCD — on all tobacco products.
    • Taxation should achieve a significant reduction in the affordability of tobacco products to reduce tobacco use prevalence and facilitate India’s march towards sustainable development goals.

     

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  • Constituent Assembly debates around Citizenship

    This newscard is an excerpt from the ‘Letter and Spirit’ section in the print edition of TH, which is a new column that will focus on explaining and understanding basic Acts and Articles enshrined in our Constitution.

    Context

    • With the contentious farm laws repealed, the discussions turn to the second most politically and legally resisted legislation of recent times, The Citizenship (Amendment) Act, 2019.
    • The citizenship question finds its retro-reflection in the Constituent Assembly debates which serve as the undeniable autobiography of India’s basic law.

    Debate over CAA, yet again

    • CAA asserts that only people belonging to some faiths are victims of persecution and violence and the doors of the country can be legitimately shut to any other instance of persecution and ethnic violence.

    A ‘headache’ for the Drafting Committee

    • The citizenship question had been one of the most difficult tasks confronted by the drafting committee as admitted by Dr B.R.Ambedkar.
    • He moved a set of consolidated amendments to the citizenship provisions of the original draft.
    • He said that the task had given the drafting committee “such a headache” and multiple “drafts were prepared” and “destroyed” before arriving at a consensus.

    The critics

    • The draft did not satisfy all but to the most due to its secular and liberal provisions.
    • It was fiercely contested on the floor of the Constituent Assembly on religious, ethnic and hyper-nationalistic considerations.
    • The Article 5 of the draft constitution was criticized for its lack of exclusive and preferential provisions on religious lines regarding the declaration as to who shall be the citizen of India during commencement of the Constitution.
    • Then Article 5A (today’s Article 7 of the Constitution) sought to grant citizenship rights to the migrants of Pakistan who had returned to India under a permit for resettlement granted by Indian authorities.

    The ‘Jus Soli’ Principle

    • This principle is premised on the automatic grant of citizenship based on the place of birth provided the person is domiciled in India, qualifying it with religious identity.
    • It was in fact a proposal to ingrain religion into the bedrock of the Constitution.
    • Dr P.S.Deshmukh from the Central Provinces and Berar proposed changes to Article 5 of the draft by proposing to replace the universally honoured “jus soli” principle by qualifying it with a religion.
    • He went on to state that every person who is a Hindu or a Sikh by religion and is not a citizen of any other State, wherever he resides shall be entitled to be a citizen of India.

    Issue over indiscriminate grant of citizenship

    • The concern of Dr. Deshmukh justifying the exclusion of people belonging to other religions, as echoed in his question- Is it then wise that we should throw opens our citizenship so indiscriminately?
    • It found fraternal support from members who opined that Hindus and Sikhs have no other home but India.
    • This finds its resonance today in the presumptive base of the CAA.

    The defenders

    • Some highlighted the fact of panic driven migration without certain intention to settle down in Pakistan was left unanswered with precision.
    • Some retorted that mentioning the name of some communities will make other communities feel that they were being ignored.

    What did Nehru opine?

    • Nehru stated that we cannot have rules for Hindus, for Muslims and for Christians only.
    • He stressed upon the possibility of the second wave of migration including non-Hindus and non-Sikhs who were part of the first wave influx.
    • Hence, in his view, foreclosing the doors fearing the influx of some may deprive others of exercising their choice.

    Ambedkar on Pakistan returnees

    • Ambedkar clarified that the principal thrust of Article 5A was to declare that persons who migrated to Pakistan after 1st of March 1947 due to internal disturbances.
    • He declared that some migrants from Pakistan were allowed to return on the basis of the agreements between both the Governments and on the basis of an ordinance promulgated.

    Conclusion

    • The Constituent Assembly debates on citizenship showed that in the rousing of sentiments of ethnicity and distrust, sagacity had an upper hand, leading to the saner denouement of toleration.
    • History is known to set examples.

     

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  • What are Non-convertible Debentures?

    Several companies have announced public issues to raise funds through non-convertible debentures.

    What are Debentures?

    • Debentures are long-term financial instruments issued by a company for specified tenure with a promise to pay fixed interest to the investor.
    • They can be held by individuals, banking companies, primary dealers other corporate bodies registered or incorporated in India and unincorporated bodies.
    • Their types include:
    1. Convertible debentures (CDs): They are a type of debentures that can be converted into equity shares of the company.
    2. Non-convertible debentures (NCDs): They are defined as the type of debentures that cannot be converted into equity shares of the company.

    What are NCDs?

    • Some debentures have a feature of convertibility into shares after a certain point of time at the discretion of the owner.
    • The debentures which can’t be converted into shares or equities are called non-convertible debentures (or NCDs).
    • They are debt financial instruments that companies use to raise medium- to long-term capital.

    Benefits offered by NCDs

    • At a time when fixed deposit rates are in low single digits, these NCD offerings look lucrative.
    • NCDs offer interest rates between 8.25–9.7%.

    Risks posed

    • Although NCDs are generally considered safe fixed-income instruments, some recent defaults have made investors cautious.
    • NCDs can be either secured by the issuer company’s assets, or unsecured.
    • Certain issuers, with credit rating below investment grade, had in the past issued both a secured NCD and another unsecured one through the same offer document, with different credit ratings.
    • The risk is high in the case of unsecured NCDs, even though they offer high-interest rates.
    • Credit rating of the issuer is a key factor to consider before investing in any NCD.

     

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  • Global Health Security Index, 2021

    Countries across all income levels remain dangerously unprepared to meet future epidemic and pandemic threats, according to the new 2021 Global Health Security (GHS) Index.

    About GHS Index

    • The GHS Index is the first comprehensive assessment and benchmarking of health security and related capabilities across the 195 countries that make up the States Parties to the International Health Regulations.
    • It is a project of the Johns Hopkins Centre for Health Security, the Nuclear Threat Initiative (NTI) and the Economist Intelligence Unit (EIU) and was first launched in October 2019.
    • It assesses countries across 6 categories, 37 indicators, and 171 questions using publicly available information.
    • It benchmarks health security in the context of other factors critical to fighting outbreaks, such as political and security risks, the broader strength of the health system, and country adherence to global norms.

    Parameters assessed

    The report is based on a questionnaire of 140 questions, organized across 6 categories, 34 indicators, and 85 sub-indicators. The six categories are:

    1. Prevention: Prevention of the emergence or release of pathogens
    2. Detection and Reporting: Early detection and reporting for epidemics of potential international concern
    3. Rapid Response: Rapid response to and mitigation of the spread of an epidemic
    4. Health System: Sufficient and robust health system to treat the sick and protect health workers
    5. Compliance with International Norms: Commitments to improving national capacity, financing plans to address gaps, and adhering to global norms
    6. Risk Environment: Overall risk environment and country vulnerability to biological threats

    Global performance

    • In 2021, no country scored in the top tier of rankings and no country scored above 75.9, the report showed.
    • The world’s overall performance on the GHS Index score slipped to 38.9 (out of 100) in 2021, from a score of 40.2 in the GHS Index, 2019.
    • This, even as infectious diseases are expected to have the greatest impact on the global economy in the next decade.
    • Some 101 countries high-, middle- and low-income countries, including India, have slipped in performance since 2019.

    Indian scenario

    • India, with a score of 42.8 (out of 100) too, has slipped by 0.8 points since 2019.
    • Three neighboring countries — Bangladesh, Sri Lanka and Maldives — have improved their score by 1-1.2 points.

    Conclusion

    • Health emergencies demand a robust public health infrastructure with effective governance.
    • The trust in government, which has been a key factor associated with success in countries’ responses to COVID-19, is low and decreasing, the index noted.

     

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