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Distribution: yearly

  • AFSPA further reduced in Assam, Manipur and Nagaland: MHA

    afspa

     

    Central idea: Home Minister recently announced the decision to reduce the Disturbed Areas under the Armed Forces (Special Powers) Act (AFSPA) in Nagaland, Assam, and Manipur.

    Reason for the decision

    • Improved security: The decision was taken due to a significant improvement in the security situation in Northeast India.
    • Decrease in Violence: The prevalence of insurgencies in almost all states in the Northeast may arguably have necessitated the imposition of AFSPA in the past. Statistics suggest that violence in the region has been on the decline. The MHA cited a reduction of 76% in extremist incidents, 90% decrease in deaths of security personnel and a 97% decrease in civilian deaths since 2014.
    • Negotiations with Rebel Groups: The government has negotiated peace with rebel groups in the region, including NSCN-IM, Ulfa, Bodo, and Dimasa groups, with some success.
    • Peace accords: The Mizo rebels, who signed a peace accord in 1986, joined electoral politics and won office. The Tripura government successfully negotiated with the insurgency and got AFSPA removed in 2015. The government must continue to engage with rebel groups to maintain peace in the region.

    What is 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 a warrant; enter or search premises without a warrant; and ban the possession of firearms.

    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.

    What are the Special Powers?

    • 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;
    • Power to destroy structures: used as hide-outs, training camps, or as a place from which attacks are or likely to be launched, etc;
    • Power to arrest: without warrant and to use force for the purpose;
    • Power to enter and search premises: without a warrant to make arrest or recovery of hostages, arms and ammunition and stolen property etc.

    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.

    Issues with AFSPA

    • Power to kill: Section 4 of the Act granted officers the authority to “take any action” even to the extent to cause the death.
    • 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.
    • 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.

    Recommendations to repeal AFSPA

    • 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.
    • ARC II: The Administrative Reforms Commission in its 5th Report on ‘Public Order’ had also recommended that AFSPA be repealed.

    Voices for repeal

    • Human rights violations: The repeal of AFSPA is necessary not just for restoring constitutional sanity, but also as a way of acknowledging the dark history of our conduct in Nagaland.
    • Need for ensuring individual dignity: The political incorporation of Nagaland (and all other areas where this law applies) will be set back if the guarantees of the individual dignity of the Indian Constitution are not extended.
    • Not state of exception: We often describe AFSPA in terms of a “state of exception”. But this theoretical term is misleading. How can a law that has been in virtually continuous existence since 1958 be described as an “exception”.
    • Lack of human empathy: At the heart of AFSPA is a profound mutilation of human empathy.

    Conclusion

    • To bring in lasting peace in the North East, the government needs to avoid the trap of watered-down peace accords.
    • While the move to withdraw AFSPA is welcome, it needs to be gradually erased.
    • For that, changes in the ground situation would be crucial. Mere smoke signals or drum-beating can never do the job.

     

     

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  • What is Biotransformation Technology?

    bio

    Central idea: The article highlights the issue of plastic waste generated by e-commerce giant Amazon and the need for a biotransformation technology that can make plastics biodegradable and its potential applications in reducing plastic waste in various industries.

    Amazon’s Plastic Waste Problem

    • Amazon generated 321 million kilograms (709 million pounds) of plastic from packaging waste in 2021.
    • The amount of plastic waste generated by Amazon in 2021 is enough to circle the Earth over 800 times as air pillows.

    What is Biotransformation Technology?

    • Biotransformation technology is a novel approach to ensure plastics that escape refuse streams are processed efficiently and broken down.
    • The technology was co-developed by Polymateria and the Imperial College in London, UK.
    • Plastics made using this technology are given a pre-programmed time during which the manufactured material looks and feels like conventional plastics without compromising on quality.
    • Once the product expires and is exposed to the external environment, it self-destructs and biotransforms into bioavailable wax, which is then consumed by microorganisms, converting waste into water, CO2, and biomass.
    • The technology is the world’s first that ensures polyolefins fully biodegrade in an open environment without causing any microplastics.

    bio

    Need for Biotransformation Technology

    • India generates 3.5 billion kgs of plastic waste annually, and a third of it comes from packaging waste.
    • In 2019, plastic packaging waste from e-commerce firms was estimated at over a billion kilograms worldwide.
    • Amazon generated nearly 210 million kgs (465 million pounds) of plastic from packaging waste in 2019.
    • Up to 10 million kgs (22.44 million pounds) of Amazon’s plastic packaging ended up in the world’s freshwater and marine ecosystems as pollution in 2019.

    Application of this technology

    • The food packaging and healthcare industries are the two prime sectors that could use this technology to reduce waste.
    • The increase in cost is relatively small compared to conventional plastic which does not contain this technology.
    • Some well-known Indian firms in the food and packaging industries deploy such technologies.
    • Within healthcare and pharma industries, this technology provides biodegradable solutions for non-woven hygiene products like diapers, sanitary napkins, facial pads, etc.

    India’s initiatives to tackle plastic pollution

    • Phased elimination: The Indian government launched a plastic waste management gazette to help tackle the ever-growing plastic pollution caused by single-use plastics. The government imposed a ban on single-use plastics last year to bring a stop to its use in the country.
    • National Dashboard on Elimination of Single-Use Plastic and Plastic Waste Management: It brings all stakeholders together to track the progress made in eliminating single-use plastic and effectively managing such waste.
    • Extended Producer Responsibility (EPR) portal: It helps in improving accountability traceability, and facilitating ease of compliance reporting in relation to EPR obligations of the producers, importers, and brand-owners.
    • Lifecycle monitoring: India has developed a mobile app to report single-use plastics grievances to check the sale, usage, or manufacturing of single-use plastics in their area.

    Alternatives to Reducing Plastic Waste

    • A switch to jute or paper-based packaging could potentially cut down plastic waste.
    • Wooden packaging is yet another alternative, but that will make the packaging bulkier and increase the cost.
    • The alternatives can be made using coir, bagasse, rice and wheat bran, plant and agricultural residue, banana and areca leaves.

     

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  • What is Patent Evergreening?

    patent

    Central idea: Patent Evergreening

    • Indian Patent Office rejects Johnson & Johnson’s attempt to extend monopoly on manufacturing Bedaquiline in India beyond July 2023.
    • This is a victory for patients fighting for wider access to crucial anti-tuberculosis drug Bedaquiline.
    • Expired primary patents pave the way for generic drug manufacturers to produce Bedaquiline, thus ensuring cheaper and wider access to the drug.

    Significance of the move

    • The drug has been shown to have a high success rate in treating MDR-TB, and is considered to be a significant breakthrough in the fight against this disease.
    • However, the high cost of the drug has made it difficult for many patients to access it, particularly in developing countries.

    What is Bedaquiline?

    • Bedaquiline is a drug that is primarily used in the treatment of multidrug-resistant tuberculosis (MDR-TB).
    • MDR-TB is a serious public health threat, particularly in countries with high TB burdens, as treatment options for this condition are limited and often ineffective.
    • It was developed by Janssen Pharmaceuticals, a subsidiary of Johnson & Johnson. Bedaquiline.
    • It is an antibiotic that works by inhibiting ATP synthase, which is a key enzyme involved in the energy production of TB bacteria.
    • Bedaquiline is typically administered in combination with other drugs for a period of six months.

     

    Implications

    • India and the US has often been at the crossheads due to Section 3(d) of Patents Act that allows for “generic competition by patenting only novel and genuine inventions.”
    • US always accuses India as one of the most challenging major economies as far as IP protection and enforcement is concerned.

    Indian Patent Regime: A Backgrounder

    • Indian patents are governed by the Indian Patent Act of 1970.
    • India has gradually aligned itself with international regimes pertaining to intellectual property rights.
    • It became a party to the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement following its membership to the World Trade Organisation on January 1, 1995.
    • The interesting point is that the original Indian Patents Act did not grant patent protection to pharmaceutical products to ensure that medicines were available at a low price.
    • Patent protection of pharmaceuticals was re-introduced after the 2005 amendment to comply with TRIPS.

    What is Patents Evergreening?

    • One of the main points of contention between India and the US has been Article 3(d) of the Indian Patent Act.
    • Section 3 deals with what does not qualifyas an invention under the Act, and Section 3(d) in particular excludes the mere discovery of a new form of a known substance.
    • Section 3(d) prevents the mere discovery of any new property or new use for a known substance from being patented as an invention unless it enhances the efficacy of the substance repetitive.
    • This prevents, what is known as “Evergreening” of patents.
    • According to the Committee’s report, Section 3(d) allows for “generic competition by patenting only novel and genuine inventions.”

    Conclusion

    • The gravity of public health problems affecting developing and least developed nations must be recognized by developed nations such as the US.
    • Though intellectual property protection is important for the development of new medicines but the right to protect public health and, in particular, to promote access to medicines for all is far more important.
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  • ICMR releases Ethical Guidelines for AI usage in Healthcare

    health

    The Indian Council of Medical Research (ICMR) has recently released the first-ever set of ethical guidelines for the application of artificial intelligence (AI) in biomedical research and healthcare.

    Ethical Guidelines for AI usage in Healthcare

    • The guidelines aim to create “an ethics framework which can assist in the development, deployment, and adoption of AI-based solutions” in specific fields.
    • Through this initiative, the ICMR aims to make “AI-assisted platforms available for the benefit of the largest section of common people with safety and highest precision possible”.
    • It seeks to address emerging ethical challenges when it comes to AI in biomedical research and healthcare delivery.

    Key features

    • Effective and safe development, deployment, and adoption of AI-based technologies: The guidelines provide an ethical framework that can assist in the development, deployment, and adoption of AI-based solutions in healthcare and biomedical research.
    • Accountability in case of errors: As AI technologies are further developed and applied in clinical decision making, the guidelines call for processes that discuss accountability in case of errors for safeguarding and protection.
    • Patient-centric ethical principles: The guidelines outline 10 key patient-centric ethical principles for AI application in the health sector, including accountability and liability, autonomy, data privacy, collaboration, risk minimisation and safety, accessibility and equity, optimisation of data quality, non-discrimination and fairness, validity and trustworthiness.
    • Human oversight: The autonomy principle ensures human oversight of the functioning and performance of the AI system.
    • Consent and informed decision making: The guidelines call for the attainment of consent of the patient who must also be informed of the physical, psychological and social risks involved before initiating any process.
    • Safety and risk minimisation: The safety and risk minimisation principle is aimed at preventing “unintended or deliberate misuse”, anonymised data delinked from global technology to avoid cyber attacks, and a favourable benefit-risk assessment by an ethical committee among a host of other areas.
    • Accessibility, equity and inclusiveness: The guidelines acknowledge that the deployment of AI technology assumes widespread availability of appropriate infrastructure and thus aims to bridge the digital divide.
    • Relevant stakeholder involvement: The guidelines outline a brief for relevant stakeholders including researchers, clinicians/hospitals/public health system, patients, ethics committee, government regulators, and the industry.
    • Standard practices: The guidelines call for each step of the development process to follow standard practices to make the AI-based solutions technically sound, ethically justified, and applicable to a large number of individuals with equity and fairness.
    • Ethical review process: The ethical review process for AI in health comes under the domain of the ethics committee which assesses several factors including data source, quality, safety, anonymization, and/or data piracy, data selection biases, participant protection, payment of compensation, possibility of stigmatisation among others.

    Policy moves for streamlining AI in Healthcare

    • India already offers streamlining of AI technologies in various sectors, including healthcare, through the National Health Policy (2017), National Digital Health Blueprint (NDHB 2019), and Digital Information Security in Healthcare Act (2018) proposed by the Health Ministry.
    • These initiatives pave the way for the establishment of the National Data Health Authority and other health information exchanges.

    Potential applications of AI in healthcare

    Artificial Intelligence (AI) has revolutionized the healthcare industry by enabling various applications. These applications include:

    • Diagnosis and screening: AI can be used to identify diseases from medical images like X-rays, CT scans, and MRIs.
    • Therapeutics: AI can assist in the development of personalised medicines by analyzing a patient’s genetic makeup.
    • Preventive treatments: AI can predict the risk of developing a disease, helping healthcare professionals to take preventive measures.
    • Clinical decision-making: AI can analyze large amounts of data to assist healthcare professionals in making treatment decisions.
    • Public health surveillance: AI can be used to monitor disease outbreaks and inform public health policies.
    • Complex data analysis: AI can analyze large amounts of data from multiple sources to identify patterns and inform healthcare decision-making.
    • Predicting disease outcomes: AI can predict disease outcomes based on patient data, enabling early
    • Behavioural and mental healthcare: AI can help diagnose and treat mental health conditions.
    • Health management systems: AI can assist in managing patient records, appointment scheduling and reminders, and medication management.

    Various challenges for imbibing

    • Data privacy and security: With the use of AI in healthcare, there is a significant amount of personal and sensitive data is collected. This data needs to be kept secure and protected from potential cyber-attacks.
    • Regulatory and ethical issues: AI technology is still in its early stages of development and there are no clear guidelines or regulations in place for its use in healthcare. There are also ethical considerations, such as accountability, transparency, and bias that need to be addressed.
    • High cost involved: The implementation of AI in healthcare requires significant investment in terms of infrastructure, software, and training. This cost can be a major challenge for healthcare organizations, especially in developing countries.
    • Integration with existing systems: AI systems need to be integrated with existing healthcare systems and processes. This can be challenging, especially in cases where the existing systems are outdated or incompatible with AI technology.
    • Lack of trust and acceptance: AI technology is still relatively new in healthcare and there is a lack of trust and acceptance among healthcare professionals and patients. This can be a major hurdle in the widespread adoption of AI in healthcare.

    Threats posed by AI to healthcare

    • Data privacy and security: The use of AI in healthcare requires the collection and analysis of vast amounts of personal health data, which could be at risk of being stolen or misused.
    • Bias and discrimination: There is a risk that AI algorithms could perpetuate existing biases and inequalities in healthcare, such as racial or gender bias.
    • Lack of transparency: Some AI models are complex and difficult to understand, which can make it difficult to explain the reasoning behind a particular decision.
    • Medical errors: AI systems can make errors if they are trained on biased or incomplete data, or if they are used inappropriately.
    • Ethical concerns: There are several ethical concerns associated with the use of AI in healthcare, including the potential for AI to replace human doctors, the impact on patient autonomy, and the implications for informed consent.

    Way forward

    • Develop a national AI strategy for healthcare: This strategy should include policies for data sharing, privacy, and security, as well as guidelines for the ethical and responsible use of AI.
    • Invest in AI research and development: The government should invest in research and development of AI technologies that can help address the challenges in healthcare.
    • Promote collaboration between stakeholders: Collaboration between stakeholders such as healthcare providers, researchers, government agencies, and industry can help accelerate the development and adoption of AI technologies in healthcare.
    • Train healthcare professionals in AI: The government can work with academic institutions and the industry to create training programs and certifications for healthcare professionals.
    • Address regulatory challenges: The government should work to address regulatory challenges related to the use of AI in healthcare.
    • Focus on affordability and accessibility: This can be achieved by promoting innovation, encouraging competition, and ensuring that AI technologies are integrated into existing healthcare infrastructure.

     

  • Membership of a banned outfit is a crime under UAPA: SC

    uapa

    The Supreme Court has overturned its previous judgments and ruled that a person who “is or continues to be” even a “mere member” of a banned organisation is liable to be found criminally liable under the Unlawful Activities Prevention Act (UAPA) for acting against the sovereignty and integrity of India.

    Why in news?

    • The Supreme Court’s earlier ruling maintained the restraints stitched into Article 19(4) on the right of citizens to form associations and unions.

    What has changed with this judgment?

    • Possession of literature or expression of sympathy to the cause without any real involvement in the crime can be counted as evidence of “membership” if the threshold is lower and does not require actual involvement.

    What is Unlawful (Activities) Prevention Act (UAPA)?

    • The UAPA is aimed at effective prevention of unlawful activities associations in India.
    • Its main objective was to make powers available for dealing with activities directed against the integrity and sovereignty of India
    • It is an upgrade on the Terrorist and Disruptive Activities (Prevention) Act TADA, which was allowed to lapse in 1995 and the Prevention of Terrorism Act (POTA) was repealed in 2004.
    • It was originally passed in 1967 under the then Congress government led by former Prime Minister Indira Gandhi.
    • Till 2004, “unlawful” activities referred to actions related to secession and cession of territory. Following the 2004 amendment, “terrorist act” was added to the list of offences.

    What are Unlawful Activities and Associations?

    • The UAPA lays down the definitions and rules for designating an organisation as an “unlawful association” if it is engaged in certain types of activities.
    • Under Section 3 of the UAPA Act, the government has powers to declare an association “unlawful”.
    • The government can then issue a notification designating such an organisation as a terrorist organisation, if it believes that the organisation is part of “terrorist activities.”

    (1) Unlawful Activites

    • Under section 2(o) of the UAPA, an unlawful activity in relation to an individual or association means – Any action taken by such an individual or association (whether by committing an act or by words, either spoken or written, or by signs or by visible representation or otherwise), –
    1. Works for the Cession of a part of the territory of India or the secession of a part of the territory of India from the Union
    2. Disclaims, questions, disrupts or is intended to Disrupt the sovereignty and territorial integrity of India; or
    3. which causes or is intended to cause Disaffection against India;
    • Related and ancillary acts, including financing, support or promotion of any such activities are also “unlawful activity”.

    (2) Unlawful Association

    The UAPA also defines an “Unlawful Association” under section 2(p) as meaning any association,–

    1. which has for its object any unlawful activity, or which encourages or aids persons to undertake any unlawful activity, or of which the members undertake such activity or
    2. which encourages or aids persons to undertake any such activity, or of which the members undertake any such activity

    Cases registered under UAPA

    • During 2015 to 2020, 5,924 cases were registered and 8,371 persons arrested.
    • The National Investigation Agency, on its website, had listed 456 cases of which 78% involved UAPA charges.

    Why UAPA is often criticized?

    • Draconian: The provision of extended detention without trial, lack of transparency in the process, and limited scope for judicial intervention have also been criticized.
    • Community targeting: The law has been used to suppress dissent, target minorities, and stifle freedom of speech and expression.
    • Vague definitions: Critics argue that the broad definition of “unlawful activities” in the law is vague and can be used to target anyone who opposes the government or its policies.

    Reported abuse of UAPA

    • The PUCL report studied data from the National Crime Records Bureau (NCRB) from 2015 to 2020.
    • It has found per-case conviction rate under the UAPA was 27.57% compared with 49.67% in Indian Penal Code (IPC) cases.
    • The per-arrestee conviction rate was just 2.8% against 22.19% in IPC cases.
    • This is far less to figure of the success of having UAPA.

    Issues with UAPA

    • Burden of proof:With such high barriers of proof, it is now impossible for an accused to obtain bail, and is in fact a convenient tool to put a person behind bars indefinitely.
    • No interim bail:As a consequence of UAPA being applied, the accused cannot even get bail.
    • Traitor branding:This is being abused by the government, police and prosecution liberally: now, all dissenters are routinely implicated under charges of sedition or criminal conspiracy and under the UAPA.
    • Fake and framed cases:In multiple instances, evidence is untenable, sometimes even arguably planted, and generally weak overall.

    Impact of the recent ruling

    • The ruling is expected to have significant implications for individuals associated with banned organisations in India.
    • It is likely that there will be more cases of individuals being charged for their membership of a banned organisation.
    • While the court clarified that persons who had left the organisation and were not members at the time it was declared unlawful, cannot be held liable under Section 10(a)(i) of the UAPA/

    Conclusion

    • This judgment is a significant step towards preventing unlawful activities and protecting the sovereignty and integrity of India.
    • While the ruling has been praised by the government, civil rights advocates have raised concerns about the implications of this judgment on fundamental rights.
    • It remains to be seen how this ruling will be applied and enforced in practice.

     

     

     

  • Lok Sabha clears forming GST Appellate Tribunal

    The Lok Sabha passed Finance Bill, 2023 with some amendments, including one that seeks to set up the much-awaited GST Appellate Tribunal (GSTAT), which will deal with tax disputes.

    What is GST Appellate Tribunal?

    • The GST Appellate Tribunal is a quasi-judicial body proposed to be established to resolve disputes related to the Goods and Services Tax (GST) in India.
    • It will function as an independent body to hear appeals against orders passed by the GST authorities or the Appellate Authority.
    • The tribunal will be composed of a national bench and various regional benches, headed by a chairperson appointed by the central government.
    • The proposed tribunal is expected to help expedite the resolution of disputes related to GST and reduce the burden on the judiciary.

    Under GST, if a person is not satisfied with the decision passed by any lower court, an appeal can be raised to a higher court, the hierarchy for the same is as follows (from low to high):

    1. Adjudicating Authority
    2. Appellate Authority
    3. Appellate Tribunal
    4. High Court
    5. Supreme Court

    Composition of GSTAT

    • GSTAT will have a “Principal Bench” in New Delhi.
    • It would have the President (probably a former Supreme Court judge), a judicial member, a technical member (centre), and a technical member (state).
    • It will also have state benches.
    • Appeals pertaining to disputes of less than Rs. 50 lakh that don’t deal with a question of law could be decided by a single-member bench, as per the norms approved by the GST Council.

    Why need such Tribunal?

    • Unburden judiciary: GST Appellate Tribunal will help resolve the rising number of disputes under the 68-month old indirect tax regime that are now clogging High Courts and other judicial fora.
    • Improve the efficiency of GST System: Overall, the establishment of the GST Appellate Tribunal is expected to improve the efficiency and effectiveness of the GST system in India.
    • Independent mechanism: The proposed Tribunal will provide an independent and efficient mechanism for resolving disputes related to GST.
    • Avoid tax evasion: It will help to expedite the resolution of disputes, reduce the burden on the judiciary, and promote greater certainty and predictability in the GST system.

    Issues with present litigation

    • Compliance issues: The GST system is relatively new in India, having been implemented in 2017, and there have been several issues with compliance and interpretation of rules and regulations.
    • Complex adjudication hierarchy: The current dispute resolution mechanism involves multiple layers of adjudication, starting with the GST officer and as mentioned above.
    • Time-consuming process: This process can be time-consuming, costly, and burdensome for taxpayers, especially small and medium-sized enterprises.

    Back2Basics: Finance Bill

    • A Finance Bill is a proposed legislation that is introduced by the government to implement the financial proposals of the Union Budget for the upcoming financial year in India.
    • It is a comprehensive document that outlines the government’s revenue and expenditure for the year, including changes in tax laws, tariffs, customs duties, and other fiscal measures.
    • Since the Union Budget deals with these things, it is passed as a Finance Bill.

    Types of Finance Bills

    • There are different kinds of Finance Bills — the most important of them is the Money Bill. The Money Bill is concretely defined in Article 110.
    • In India, there are three types of Finance Bills that can be introduced in the Parliament:
    1. Annual Finance Bill: This is the most common type of Finance Bill and is introduced by the government every year to give effect to the tax proposals announced in the Union Budget. It contains provisions related to taxation, expenditure, and revenue collection for the upcoming financial year.
    2. Finance Bill (Money Bill): A Money Bill is a type of Finance Bill that contains only provisions related to taxation and expenditure, but does not include any other matter. Money Bills are deemed to be passed by the Lok Sabha, the lower house of Parliament, and do not require approval from the Rajya Sabha, the upper house of Parliament.
    3. Finance Bill (Non-Money Bill): This type of Finance Bill contains provisions related to taxation and other matters, such as changes in the structure of regulatory bodies or the introduction of new policies. Unlike Money Bills, Non-Money Bills must be passed by both the Lok Sabha and the Rajya Sabha to become law.

    How is money bill different from Finance Bill?

    • A Money Bill is certified by the Speaker as such — in other words, only those Financial Bills that carry the Speaker’s certification are Money Bills.
    • Article 110 states that a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters:

    (a) the imposition, abolition, remission, alteration or regulation of any tax;

    (b) the regulation of the borrowing of money or any financial obligations undertaken

    (c) the custody of the consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund;

    (d) the appropriation of moneys out of the consolidated Fund of India;

    (e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure;

    (f) the receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State; or

    (g) any matter incidental to any of the matters specified in sub clause (a) to (f)

     

     

     

  • In news: Liberalised Remittance Scheme (LRS)

    Central idea: The Reserve Bank of India (RBI) is being asked to monitor card spend under the Liberalised Remittance Scheme (LRS).

    Liberalised Remittance Scheme (LRS)

    • LRS is a facility provided by the Reserve Bank of India (RBI) to resident individuals to remit funds abroad for permitted current or capital account transactions or a combination of both.
    • The scheme was introduced in 2004 and has been periodically reviewed and revised by the RBI.
    • Under the scheme, resident individuals can remit up to a certain amount in a financial year for permissible transactions including education, travel, medical treatment, gifts, and investments in equity and debt securities, among others.
    • The limit for LRS is currently set at USD 250,000 per financial year.

    Eligibility for LRS

    • LRS is open to everyone including non-residents, NRIs, persons of Indian origin (PIOs), foreign citizens with PIO status and foreign nationals of Indian origin.
    • The Scheme is NOT available to corporations, partnership firms, Hindu Undivided Family (HUF), Trusts etc.

    Benefits provided by LRS

    • LRS is an easy process that anyone can use to transfer money between two countries.
    • It’s especially useful for businesses because they can use it to transfer funds to India, and investors can receive their investments back home.
    • LRS also has some added benefits, like fast transfer timing and no issues with exchange rates.

     

     

  • [pib] Exercise Konkan, 2023

    Ex Konkan, the annual bilateral maritime exercise between the Indian Navy and the Royal Navy, was recently held off the Konkan coast in the Arabian Sea.

    Exercise Konkan 2023

    • Konkan exercise is the annual bilateral maritime exercise between the Indian Navy and the UK’s Royal Navy.
    • INS Trishul, a guided missile frigate, and HMS Lancaster, a Type 23 guided missile frigate, participated in this edition.
    • They undertook multiple maritime drills to enhance interoperability between the two forces and imbibe best practices.
    • The exercises covered all domains of maritime operations, air, surface, and sub-surface.
    • It included gunnery shoots on the surface inflatable target ‘Killer Tomato’, helicopter operations, anti-air, and anti-submarine warfare drills, Visit Board Search and Seizure (VBSS), ship maneuvers, and exchange of personnel.
    • The exercise will help the Indian Navy and Royal Navy work together to improve maritime security and maintain a rules-based order in the region.

     

     

     

  • India’s Push for Semiconductors

    semiconductor

    Central idea

    • The Indian government has given ₹1,645 crore in PLI incentives to electronics manufacturers to bring more of the supply chain to India.
    • There is a growing need for semiconductors as they are used in almost all modern electronics.
    • Many countries are moving away from China’s dominance in the sector due to supply chain vulnerabilities and geopolitical pressures.

    Semiconductor manufacturing in India

    • Invest India agency estimates electronics manufacturing to be worth $300 billion by 2025-26.
    • While finished product facilities have been growing, fabs for chipsets and displays are rarer.
    • Ministry of Electronics and Information Technology is set to announce the first semiconductor manufacturing fab soon.
    • Semiconductor Industry Association (SIA) suggests India to leverage its strength in the electronics manufacturing value chain.
    • Foundry companies require high investments while OSAT generate better margins.
    • Outsourced Semiconductor Assembly and Test (OSAT) set-ups take care of less capital-intensive parts of chipmaking and run specialized tests.
    • Many chip facilities tend to be captive units of large companies.

    Importance of semiconductor manufacturing

    • Semiconductor fabrication units turn raw elements like silicon into integrated circuits used in practically all electronic hardware.
    • Fabs are highly capital-intensive undertakings costing billions of dollars for large facilities.
    • Fabs require a highly reliable and high-quality supply of water, electricity, and insulation from the elements, reflecting the high degree of precision, cost, and capital needed to make sophisticated circuits.
    • Countries have spotted strategic value in cornering segments of the value chain for fabs.
    • China has pulled ahead of Taiwan last year in terms of global sales from fabs.
    • The US passed the CHIPS Act to provide subsidies and investments to manufacturers opening fabs and making semiconductors in the US.
    • US also pushed some restrictions and sanctions on the Chinese semiconductor industry.

    India’s advantages in semiconductor manufacturing

    • India has an advantage in semiconductor manufacturing as a large portion of semiconductor design engineers globally are either Indian or Indian-origin.
    • Chipmaking firms such as Intel and NVIDIA have large facilities in India that are already flush with Indian talent working on design problems.
    • China is losing control over this advantage in the face of sanctions and an ageing population.
    • Experts believes that without a sustainable pipeline of high calibre talent, China’s goals for the semiconductor sector will not be achievable.

    Various challenges

    • Huge Investments involved: Semiconductor Fabrication facility requires many expensive devices to function. Complex tools and equipment are required to test quality and move silicon from location to location within the ultra-clean confines of the plant.
    • Economy of scale:  In semiconductor fabrication, a high volume of production is required to be maintain so as to meet the increasing demand of the marketplace, at the same time, a strong financial backing as Indian market is very much uncertain about financial fluctuations.
    • Requirement highly skilled labour: Semiconductor fabrication is a multiple-step sequence of photolithographic and chemical processing steps during which electronic circuits are gradually created on a wafer made of pure semiconducting material. This actually requires high skills.
    • Scarcity of raw materials: From a value-chain perspective, it needs silicon, Germanium & Gallium arsenide and Silicon carbide which are not available in India and needs to be imported.
    • Uncertain Indian market: A semiconductor fabrication facility in India cannot independently rely on Indian customers for their entire sales structure. They have to maintain overseas customer base to balance inflections from Indian market due to market trends, government policies etc.
    • Disposal of hazardous waste: Many toxic materials are used in the fabrication process such as arsenic, antimony, and phosphorus. Hazardous impact on the environment by the industry may act as an impediment to India’s commitment to mitigate climate change.

    Policy initiatives in India

    • Make in India:This aims to transform India into a global hub for Electronic System Design and Manufacturing (ESDM).
    • PLI scheme:In December 2021 the Centre sanctioned ₹76,000 crore under the production-linked incentive (PLI) scheme to encourage the manufacturing of various semiconductor goods within India.
    • DLI scheme:It offers financial incentives, design infrastructure support across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design.
    • Digital RISC-V (DIR-V) program: It intends to enable the production of microprocessors in India in the upcoming days achieving industry-grade silicon and design wins by December 2023.
    • India Semiconductor Mission (ISM):The vision is to build a vibrant semiconductor and display design and innovation ecosystem to enable India’s emergence as a global hub for electronics manufacturing and design

    Way forward

    To ensure greater resilience in a volatile world, India needs to undertake the following measures to sustain the domestic and global semiconductor demand:

    • Policy framework: As foundry setup is highly Capital intensive, it must be supported with a solid long term plan and financial backing. This backing is required from the entrepreneur & the government both.
    • Fiscal sustenance: In text of Indian Government as tax holiday, subsidy, zero duty, financial investment etc. will play an important role in promoting the Fab along with the semiconductor industry in India; this will put further pressure on already large Fiscal Deficit.
    • Support Infrastructure: World class, sustainable infrastructure, as required by a modern Fab be provided, with swift transportation, large quantity of pure water, uninterrupted electricity, communication, pollutant free environment etc.

    Conclusion

    • India’s electronic manufacturing incentive programs are geared towards breaking new ground in ambitious plans connected to popular brands such as Apple.
    • The Indian government is working to create an ecosystem that will facilitate sustainable growth and fiscal feasibility in the semiconductor industry.
    • The electronics value chain must be an international undertaking among like-minded nations with common values to be effective.

     

  • India’s disputed Compensatory Afforestation (CAMPA) Policy at odds with new IPCC report

     

    Central idea

    • The Intergovernmental Panel on Climate Change (IPCC) released its Synthesis Report, where the IPCC notes the significance of preserving natural ecosystems to mitigate climate change.
    • The report has raised concerns about the ongoing policy of afforestation in India that allows forests to be cut down and replaced elsewhere.

    Afforestation in India

    • Afforestation has become an increasingly contested policy in India.
    • The government has pledged to add “an additional (cumulative) carbon sink of 2.5-3 GtCO2e through additional forest and tree cover by 2030”.

    Why is CAMPA invoked in the IPCC report?

    • India’s Compensatory Afforestation Fund Management and Planning Authority (CAMPA) has been accused of facilitating the destruction of natural ecosystems in exchange for forests to be set up elsewhere.

    What is CAMPA?

    • CAMPA is a body established by the Indian government in 2002 on the orders of the Supreme Court.
    • The purpose of CAMPA is to promote afforestation and regeneration activities as a way of compensating for forest land that has been diverted to non-forest uses, such as for dams, mines, and other development projects.
    • The Forest (Conservation) Act of 1980 requires project proponents to identify land elsewhere for afforestation and pay for the afforestation exercise.
    • The money paid by project proponents is deposited in a fund overseen by CAMPA.

    Controversies surrounding CAMPA

    • Unutilised fund: The money paid to CAMPA sits in a fund, but most of the fund remained unspent until 2013, leading to criticism of facilitating the destruction of natural ecosystems. In 2006-2012, the fund grew from Rs 1,200 crore to Rs 23,600 crore.
    • Threatening endangered landscape: CAMPA also came under fire for funding projects that endangered landscape connectivity and biodiversity corridors.
    • Unsustainability of artificial plantation: CAMPA has been accused for planting non-native species or artificial plantations that don’t compensate for the ecosystem loss.

    Why is forestation under CAMPA unsustainable?

    • Natural ecosystems sequester more carbon: This report highlights the importance of preserving natural ecosystems and reducing the conversion of natural ecosystems to mitigate climate change.
    • Renewable energy installation is more sustainable: The IPCC report also found that solar power has more mitigating potential than reducing the conversion of natural ecosystems, and wind power was the third highest.

    Conclusion

    • Preserving natural ecosystems should be recognized as an essential means to mitigate climate change, and environment impact assessments should include climate costs.
    • Policies such as afforestation, ecosystem restoration, and renewable energy must be carefully evaluated to reduce the impact of the climate crisis.