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  • [pib] Exercise Kavach

    A large scale all-services exercise ‘Exercise Kavach’ will be conducted next week under the aegis of the Andaman and Nicobar Command (ANC), the only Joint Forces Command of the country.

    All-time generic question seeking ‘match the pairs’ can be asked from the news as such.  Click here for more exercises.

    Exercise Kavach

    • The tri-services exercise aims to fine-tune joint war-fighting capabilities and SOPs towards enhancing operational synergy in the Andaman Sea and Bay of Bengal.
    • This exercise would involve assets of Indian Army, Indian Navy, Indian Air Force and Indian Coast Guard.
    • The exercise involves synergized application of maritime surveillance assets, coordinated air and maritime strikes, air defence, submarine and landing operations.
    • Concurrently Joint Intelligence Surveillance and Reconnaissance (ISR) exercise involving various technical, electronic and human intelligence from three services will be conducted.
    • The ISR exercise will validate the capabilities of intelligence gathering from space, air, land and sea-based assets/ sensors, its analysis and sharing to achieve battlefield transparency.
    • It would carry out amphibious landing operations, air landed operation, helicopters-borne insertion of Special Forces from sea culminating in tactical follow-on operations on land.

  • True empowerment of the electricity consumer

    The article examines the various provisions of the Electricity (Rights of Consumers) Rules, 2020 and analyses whether or not these Rules will empower the consumers. 

    Empowering electricity consumers

    • The Electricity (Rights of Consumers) Rules, 2020 was promulgated in December to deal with the problems faced by the consumers.
    • The enactment of consumer-centric rules does spark public debate that brings the rights of consumers to the fore.
    • the Rules lay an emphasis on national minimum standards for the performance parameters of DISCOMs. without urban-rural distinction.
    • They also reiterate the need for automatically compensating consumers.

    Let’s analyse the changes introduced by the new Rule and issues with them

    Supply quality issue

    • Many States have not been able to provide quality supply, especially to rural and small electricity consumers.
    • Provisions similar to made in the new Rule already exist in the Standards of Performance (SoP) regulations of various State Electricity Regulatory Commissions (SERCs).
    • It is not because of a lack of rules or regulations that quality supply is not provided; rather, it is on account of a lack of accountability systems to enforce them.
    • Unfortunately, neither these rules nor past efforts address these accountability concerns.
    • Guarantee of round the clock supply is a provision that the Rules emphasise, which might be missing in State regulations.
    • It is difficult to enforce since the availability of power supply is inadequately monitored even at 11 kV feeders, let alone at the consumer location.
    • This highlights not only the need for implementation of existing provisions in letter and spirit but also amending them with strong accountability provisions.

    Weakening of existing provision

    • The Rules, in few cases, dilute progressive mechanisms that exist in State regulations.
    • For example, the Rules say that faulty meters should be tested within 30 days of receipt of a complaint.
    • Compared to this, regulations t in Andhra Pradesh, Bihar, and Madhya Pradesh, respectively, say that such testing needs to be conducted within seven days.
    • A similar observation can be drawn from the suggested composition of the Consumer Grievance Redressal Forum. 
    •  The Rules say that the forum — constituted to remedy complaints against DISCOMs should be headed by a senior officer of the company.
    • This is a regressive provision that would reduce the number of cases that are decided in favour of consumers.

    Lack of clarity on net-metering

    • The Rules guarantee net metering for a solar rooftop unit less than 10 kW.
    • However, there is no clarity if those above 10 kW can also avail net metering.
    • This could lead to a change in regulations in many States based on their own interpretations.
    •  The possible litigation that follows would be detrimental to investments in rooftop solar units, and would discourage medium and large consumers to opt for an environment-friendly, cost-effective option.

    Way forward

    • SERCs should assess the SoP reports of DISCOMs and revise their regulations more frequently.
    • SERCs should organise public processes to help consumers raise their concerns.
    • DISCOMs could be directed to ensure automatic metering at least at the 11 kV feeder level, making this data available online.
    • The Forum of Regulators — a central collective of SERCs — could come up with updated model SoP regulations.
    • Central agencies have taken proactive efforts to ensure regular tariff revision.
    • They could also support independent surveys and nudge State agencies to enforce existing SoP regulations.
    • The central government could disburse funds for financial assistance programmes based on audited SoP reports.

    Consider the question”What are the problems faced by the electricity consumers in India? Will the Electricity (Rights of Consumers) Rules, 2020 help consumers to deal with the existing issues?”

    Conclusion

    The governments, DISCOMs and regulators need to work jointly and demonstrate the commitment and the will power to implement existing regulations. It is not yet late to recognise this and initiate concerted efforts to truly empower consumers.

  • What is Section 32A of IBC?

    The Supreme Court has held that the bidders for a corporate debtor under the Insolvency and Bankruptcy Code (IBC) would be immune from any investigations being conducted either by any investigating agencies.

    Q.Examine the impact of various amendments to the Insolvency and Bankruptcy Code (IBC) and suggest further improvements in the IBC.

    Backgrounder: IBC

    • IBC was enacted on May 28, 2016, to effectively deal with insolvency and bankruptcy of corporate persons, partnership firms and individuals, in a time-bound manner.
    • It has brought about a paradigm shift in laws aimed to maximize the value of assets, providing a robust insolvency resolution framework and differentiating between impropriety and business debacle.
    • The predominant object of the Code is the resolution of the Corporate Debtor.
    • It has been amended four times to resolve problems hindering the objectives of the Code.

    What is Section 32A?

    • In cases involving property of a corporate debtor, Section 32A covers any action involving attachment, seizure, retention, or confiscation of the property of the corporate debtor as a result of such Proceedings.
    • It provides immunity to the corporate debtor and its property when there is the approval of the resolution plan resulting in the change of management of control of the corporate debtor.
    • This is subject to the successful resolution applicant being not involved in the commission of the offense.

    What were the challenges?

    • Since the IBC came into being in 2016, the implementation of the resolution plan of several big cases has been delayed because of various challenges mounted by its own agencies and regulators.
    • For example, a debt-laden company, admitted into insolvency in 2017, owes more than Rs 47,000 crore to banks and other financial institutions.
    • After a prolonged bidding battle, another won the rights to take over it with a bid of Rs 19,700 crore.
    • However, before it could move to take over, the ED/SEBI swooped in, and attached assets worth Rs 4,000 crore citing alleged fraud in a bank loan under the Prevention of Money Laundering Act (PMLA).

    Observations made by the SC

    • In its judgment, the apex court upheld the validity of Section 32.
    • It said it was important for the IBC to attract bidders who would offer reasonable and fair value for the corporate debtor to ensure the timely completion of the corporate insolvency resolution process (CIRP).
    • Such bidders, however, must also be granted protection from any misdeeds of the past since they had nothing to do with it.
    • Such protection, the court said, must also extend to the assets of a corporate debtor which will help banks clean up their books of bad loans.
    • The apex court has, however, also said that such immunity would be applicable only if there are an approved resolution plan and a change in the management control of the corporate debtor.

    Significance of SC’s intervention

    • With the Supreme Court upholding the validity of Section 32 A will give confidence to other bidders to proceed with confidence while bidding on such disputed companies and their assets.

    Must read

    [Burning Issue] Insolvency and Bankruptcy Code

  • Ratle Hydroelectric Project

    The Centre has decided to go ahead with the long-pending 850-megawatt Ratle hydroelectric power project on the river Chenab in J&K Kishtwar district, despite objections raised by the Pakistan government over the same.

    Tap to read more about Indus River System

    Ratle Hydel Plant

    • It is a run-of-the-river hydroelectric power station currently under construction on the Chenab River, downstream of the village near Drabshalla in Kishtwar district of the Indian UT of Jammu and Kashmir.
    • The project includes a 133 m (436 ft) tall gravity dam and two power stations adjacent to one another.
    • The installed capacity of both power stations will be 850 MW.
    • In June 2013, then PM Manmohan Singh laid the foundation stone for the dam.
    • Pakistan has frequently alleged that it violates the Indus Water Treaty.

    What is the Indus Water Treaty?

    • The Indus Waters Treaty is a water-distribution treaty between India and Pakistan, brokered by the World Bank signed in Karachi in 1960.
    • According to this agreement, control over the water flowing in three “eastern” rivers of India — the Beas, the Ravi, and the Sutlej was given to India.
    • The control over the water flowing in three “western” rivers of India — the Indus, the Chenab, and the Jhelum was given to Pakistan
    • The treaty allowed India to use western rivers water for limited irrigation use and unrestricted use for power generation, domestic, industrial, and non-consumptive uses such as navigation, floating of property, fish culture, etc. while laying down precise regulations for India to build projects
    • India has also been given the right to generate hydroelectricity through the run of the river (RoR) projects on the Western Rivers which, subject to specific criteria for design and operation is unrestricted.

  • Secured Overnight Financing Rate (SOFR)

    State Bank of India (SBI) has executed two inter-bank short term money market deals with pricing linked to SOFR (Secured Overnight Financing Rate).

    Try this PYQ:

    Q.The money multiplier in an economy increases with which one of the following?

    (a) Increase in the cash reserve ratio

    (b) Increase in the banking habit of the population

    (c) Increase in the statutory liquidity ratio

    (d) Increase in the population of the country

    What is SOFR?

    • Secured Overnight Financing Rate (SOFR) is a secured interbank overnight interest rate.
    • It is a replacement for USD LIBOR (London Inter-bank Offered Rate) that may be phased out end-2021.
    • The overnight rate is generally the interest rate that large banks use to borrow and lend from one another in the overnight market.

    Why SOFR?

    • Global regulators decided to move away from the Libor, a vital part of the financial system after it was revealed in 2012 that banks around the world manipulated it.
    • It also didn’t help that volume underlying the benchmark dried up.
    • U.K regulators set the deadline at 2021 for financial firms and investors to transition away from the Libor.

  • Impact of RERA on real estate sector

    The article highlights the various provision of RERA and its overall impact on the sector.

    How it changed the real estate sector

    • Real Estate (Regulation and Development) Act (RERA) was enacted in 2016 and it had been in the works for more than a decade.
    • RERA has infused governance in a hitherto unregulated sector.
    • Along with demonetization and GST, it has, to a large extent, cleansed the real estate sector of black money.
    • It has transformational provisions, conscientiously addressing issues that have been a constant bane for the sector.

    Important provisions of RERA

    • The Act stipulates that no project can be sold without project plans being approved by the competent authority and the project is registered with the regulatory authority.
    • This provision ended the practice of selling on the basis of deceitful advertisements.
    • Promoters are required to maintain “project-based separate bank accounts” to prevent fund diversion.
    • The mandatory disclosure of unit sizes based on “carpet area” strikes at the root of unfair trade practices.
    • The provision for payment of “equal rate of interest” by the promoter or the buyer in case of default reinforces equity.
    • These and many other provisions have empowered consumers, rectifying the power asymmetry prevalent in the sector.

    How RERA is an effort in cooperative federalism

    • Though the Act has been piloted by the Central government, the rules are to be notified by state governments.
    • The regulatory authorities and the appellate tribunals are also to be appointed by them.
    • The regulatory authorities are required to manage the day-to-day operations, resolve disputes, and run an active and informative website for project information.
    • Since RERA came into full force, 34 states and Union territories have notified the rules, 30 states and Union territories have set up real estate regulatory authorities and 26 have set up appellate tribunals.
    • The operationalization of a web-portal for project information, which is at the heart of ensuring full project transparency, has been operationalized by 26 regulatory authorities.
    • Around 60,000 projects and 45,723 real estate agents have been registered with regulatory authorities.
    • Twenty-two independent judicial officers have been appointed to redress consumer disputes, and 59,649 complaints have been disposed-off.

    Consider the question “What were the various problems faced by the consumers in real estate sector? How various provisions in RERA helped in the protection of consumers’ interests?” 

    Conclusion

    RERA is to the real estate sector what SEBI is to the securities market. It helped consumers from the various malpractices in the real estate sector.

     

  • Issues over Parliament Canteen Subsidy

    Food served in Parliament canteen is set to cost more as it will no longer be subsidised, Lok Sabha Speaker has informed.

    I say there is no darkness, but ignorance.

    -William Shakespeare

    Why in news?

    • The low rate of food in the Parliament canteen has often attracted controversy, with critics objecting to lawmakers enjoying a cheap meal at the taxpayers’ expense.
    • Others have pointed out that the subsidy doesn’t benefit just MPs, as a host of other Parliament staff and security personnel also take their meals at the canteen.
    • However, in 2019, all MPs had unanimously decided to do away with the subsidy.
    • The annual revenue from Parliament catering was to the tune of Rs 15 to Rs 18 crore. It could annually save more than Rs 8 crore with the subsidy coming to an end.

    Parliament Canteen Subsidy

    • A major furore over the subsidy had erupted in 2015 when a reply to an RTI query which revealed that the canteen got a subsidy of Rs 14 crore every year.
    • The item list received under the RTI Act revealed that items like ‘fish fried with chips’ were available at Rs 25, mutton cutlet at Rs 18, boiled vegetables at Rs 5, mutton curry with bone at Rs 20 and masala dosa at Rs 6.
    • These were the rates subsidised by 63 per cent, 65 per cent, 83 per cent, 67 per cent and 75 per cent respectively.
    • The caterers were being paid by the Ministry of Finance through Parliament.

    Was the entire amount being spent on MPs’ food?

    • Apart from food, the subsidy is used for other expenses, like salaries of canteen staff. Also, many other people apart from the MPs use the canteen.
    • In fact, when the RTI query had been filed in 2015, the sales in the canteen for when Parliament was in session and when it wasn’t were almost the same.
    • Of the total subsidy of Rs 14 crore revealed by the RTI query, about Rs 11-12 crore would go towards the salary of the staff manning the canteen.

  • Celebration of Parakram Diwas

    The Union Culture Ministry has announced that January 23, birth anniversary of Subhash Chandra Bose, would be celebrated as “Parakram Diwas” — the day of courage — every year.

    Try this PYQ

    Q.Highlight the difference in the approach of Subhash Chandra Bose and Mahatma Gandhi in the struggle for freedom. (150 W)

    Subhash Chandra Bose (1897-1945)

    • Bose was an Indian revolutionary prominent in the independence movement against British rule of India.
    • He also led an Indian national force from abroad against the Western powers during World War II.
    • He was a contemporary of Mohandas K. Gandhi, at times an ally and at other times an adversary.
    • He was highly influenced by a socialist ideology that acquired popularity as consequences of the Russian Revolution.

    Forget not that the grossest crime is to compromise with injustice and wrong. Remember the eternal law: You must give if you want to get.

    – Netaji

    Association with INC

    • In 1927, after being released from prison, Bose became general secretary of the Congress and worked with Jawaharlal Nehru for independence.
    • In late December 1928, Bose organised the Annual Meeting of the Indian National Congress (INC) in Calcutta.
    • Subsequently, Bose wanted to get elected as Congress President in a subsequent session of 1939 convened at Tripuri.
    • However, his candidature was challenged by Mahatma Gandhi who wanted to prevent socialist orientation to the Indian National Movement.
    • Gandhi proposed Pattabhi Sitaramaya for this candidature.
    • In this election, Bose emerged victorious by a huge margin which was not acceptable to Mahatma Gandhi.
    • Congress leader supported Mahatma Gandhi and forced Subhash Chandra Bose to step down from Presidentship.
    • Under such collective pressure, Bose not only resigned from the Congress members. Thereafter he established a separate political party known as “Forward Bloc”.

    Escape to Germany

    • On the outbreak of WW-II, Bose advocated a campaign of mass civil disobedience to protest against Linlithgow’s decision to declare war on India’s behalf without consulting the Congress leadership.
    • Having failed to persuade Gandhi of the necessity of this, he was house arrested from where he escaped to Germany.
    • He then went to several countries of Europe and finally landed in a region of Singapore in “South East Asia”.

    Azad Hind Fauj

    • The SE Asia region was under the control of Japan where a large number of “Indian Prisoners of War” was confined.
    • When Subhash Chandra Bose reached Singapore in1943 this army was led by a prominent revolutionary Ras Behari Bose whose cadre was known as “Indian National Army”.
    • Subhash Chandra Bose reorganized and expanded this force in order to liberate India. This force was renamed as “Azad Hind Fauj” by him.

    The Azad Hind Government

    • The Provisional Government of Free India, or, more simply, Free India (Azad Hind), was an Indian provisional government established in occupied Singapore in 1943.
    • C. Bose was the leader of Azad Hind Government (AHG) and also the Head of State of this Provisional Indian Government-in-exile.
    • It was a part of the freedom movement, originating in the 1940s outside India with a purpose of allying with Axis powers to free India from British rule.

    Its collapse and INA Trials

    • INA under the leadership of Bose got defeated severely at Rangoon due to lack of support of Japanese.
    • Bose was suggested to leave Burma to continue his struggle for Indian independence and returned to Singapore before the fall of Rangoon.
    • The AHG govt in the islands collapsed when the island garrisons of Japanese and Indian troops were defeated by British troops and the islands themselves retaken.
    • The Provisional Government of Free India ceased to exist with the deaths of the Axis, the INA, and Bose in 1945.
    • It was followed by the Famous Trials at Red Fort.

    Also read:

    In news: 1946 Royal Indian Navy Mutiny

  • 1776 Commission report of the White House

    The White House has released the 1776 Commission report, just days before president-elect Joe Biden would take his oath in office.

    Read about anti-apartheid movement from your World History sources.

    What is the news?

    • Earlier, Trump has signed an executive order to set up a “national commission to promote patriotic education” in the country.
    • The initiative dubbed the ‘1776 Commission’, is an apparent counter to The 1619 Project, a Pulitzer Prize-winning collection of essays on African American history of the past four centuries.
    • It explores the Black community’s contribution to nation-building since the era of slavery to modern times.
    • The name marks the independence of 13 US colonies from the British Empire in 1776.

    What is Trump’s 1776 Commission?

    • With this move, Trump sought to activate his right-wing supporters by doubling down on what he described as “cancel culture”, “critical race theory” and “revisionist history”.
    • Looking at the racial attacks, trump had said that Americans are inundated with critical race theory.
    • This was a Marxist doctrine holding that America is a wicked and racist nation, that even young children are complicit in oppression.
    • Trump wanted to reform this idea and wanted to portray himself as a defender of traditional American heritage against “radical” liberals.”

    What was the 1619 Project?

    • The Project is a special initiative of The New York Times Magazine, launched in 2019 to mark the completion of 400 years since the first enslaved Africans arrived in colonial Virginia’s Jamestown in August 1619.
    • The project aimed to reframe US history by considering what it would mean to regard 1619 as America’s birth year.

  • [pib] Exercise Desert Knight-21

    Indian Air Force and French Air and Space Force will conduct a bilateral Air exercise, Ex Desert Knight-21 at Air Force Station Jodhpur.

    All-time generic question seeking ‘match the pairs’ can be asked from the news as such.  Click here for more exercises.

    Ex. Desert Knight-21

    • The French side will participate with Rafale, Airbus A-330 Multi-Role Tanker Transport (MRTT), A-400M Tactical Transport aircraft and approximately 175 personnel.
    • The IAF aircraft participating in the exercise will include Mirage 2000, Su-30 MKI, Rafale, IL-78 Flight Refuelling Aircraft, AWACS and AEW&C aircraft.
    • The exercise marks an important milestone in the series of engagements between the two Air forces.
    • As part of Indo-French defence cooperation, Indian Air Force and French Air and Space Force have held six editions of Air Exercises named ‘Garuda’, the latest being in 2019.
    • Presently, the French detachment for Ex Desert Knight-21 is deployed in Asia as part of their ‘Skyros Deployment’ and will ferry in forces to Air Force Station Jodhpur.

    Why it is special?

    • The exercise is unique as it includes fielding of Rafale aircraft by both sides and is indicative of the growing interaction between the two premiers Air Forces.
    • It will put into practice operational experience gained across terrains and spectrums and endeavour to exchange ideas and best practices to enhance interoperability.