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GS Paper: GS3

  • The Bilateral Investment Treaties (BITs) to review

    Context

    The report of the Standing Committee on External Affairs on ‘India and bilateral investment treaties (BITs)’ was presented to Parliament last month.

    Factor’s that necessitated the review of India’s BITs

    • Investor’s started suing India frequently: Since 2011, when India lost its first investment treaty claim in White Industries v. India, foreign investors have sued India around 20 times for alleged BIT breaches.
    • This made India the 10th most frequent respondent-state globally in terms of investor-state dispute settlement (ISDS) claims from 1987 to 2019 (UNCTAD).
    • Adoption of new Model BIT: India adopted a new Model BIT in 2016, which marked a significant departure from its previous treaty practice.
    • Negotiating new BITs: India is in the process of negotiating new investment deals (separately or as part of free trade agreements) with important countries such as Australia and the U.K.

    Recommendations of the Committee

    • 1] Speed of the existing negotiations: India has signed very few investment treaties after the adoption of the Model BIT.
    • It recommends that India expedite the existing negotiations and conclude the agreements at the earliest because a delay might adversely impact foreign investment.
    •  2] Sign more BIT’s in core sector: The committee recommends that India should sign more BITs in core or priority sectors to attract FDI.
    • Generally, BITs are not signed for specific sectors.
    •  It will require an overhauling of India’s extant treaty practice that focuses on safeguarding certain kinds of regulatory measures from ISDS claims rather than limiting BITs to specific sectors.
    • 3] Fine-tune Model BIT: Model BIT gives precedence to the state’s regulatory interests over the rights of foreign investors.
    • The Model BIT should be recalibrated keeping two factors in mind:
    • a) tightening the language of the existing provisions to circumscribe the discretion of ISDS arbitral tribunals.
    • b) striking a balance between the goals of investment protection and the state’s right to adopt bonafide regulatory measures for public welfare.
    • 4] Improve the capacity of government officials: The committee recommends bolstering the capacity of government officials in the area of investment treaty arbitration.
    •  While the government has taken some steps in this direction through a few training workshops, more needs to be done.
    • What is needed is an institutionalised mechanism for capacity-building through the involvement of public and private universities.
    • The government should also consider establishing chairs in universities to foster research and teaching activities in international investment law.

    Need to improve poor governance

    • A very large proportion of ISDS claims against India is due to poor governance.
    • This includes changing laws retroactively which led to Vodafone and Cairn suing India.
    • Annulling agreement in the wake of imagined scam which resulted in taking away S-band satellite spectrum from Devas.
    • The judiciary’s fragility in getting its act together (sitting on the White Industries case for enforcement of its commercial award for years).

    Suggestions

    • The Committee could have emphasised on greater regulatory coherence, policy stability, and robust governance structures to avoid ISDS claims.
    • The government should promptly assemble an expert team to review the Model BIT.

    Consider the question “India is one of the most frequent respondent-state globally in terms of investor-state dispute settlement (ISDS) claims. In context of this, examine the reasons for such frequent disputes and suggest the way forward.” 

    Conclusion

    The committee’s report on India’s BITs have novel suggestions, but it is lacking in several aspects.

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    Back2Basics: ISDS mechanism

    • Investor-state dispute settlement (ISDS) is a mechanism in a free trade agreement (FTA) or investment treaty that provides foreign investors, with the right to access an international tribunal to resolve investment disputes.
    •  ISDS promotes investor confidence and can protect against sovereign or political risk.
    • If a country does not uphold its investment obligations, an investor can have their claim determined by an independent arbitral tribunal, usually comprising three arbitrators.

  • Draft Regional Plan 2041 for NCR

    Many environment analysts and activists has offered objections to the Draft Regional Plan-2041 for National Capital Region (NCR).

    Draft Regional Plan 2041

    • The National Capital Region Planning Board had sought objections and suggestions to the Draft RP-2041 from public.
    • Under the NCRPB plan, Delhi, two districts of Rajasthan, eight districts of Uttar Pradesh and 14 districts of Haryana are covered. In all, it covers an area of around 55,083 square kilometres.
    • The plan paves the way for a future-ready and slum-free NCR comprising of facilities like air ambulance, high-speed connectivity by means of rail, road, Heli taxis, and inland waterways.

    Key provisions

    • This plan puts special impetus on 30-minute connectivity by means of super-fast trains within major cities of NCR.
    • It also proposes to explore feasibility of 30-minute Mass Transit Rail System (MTRS) from boundaries of NCR to Delhi.
    • The plan seeks to make NCR a smart connected region by improving connectivity using bullet trains, smart roads, and helitaxi services.
    • It will evolve the region into an economically prosperous region comprising of citizen centric harmonious infrastructure.
    • It laid emphasis on circular economy of water & air quality improvements, improving environment conservation.

    Need for the plan

    • There was a need to ease out traffic congestions and create more integrated, accessible, user-centric and affordable transportation system.

    Various objections with the Plan

     

    • The plan excludes the terms “Aravalli” and “forest areas” from the Natural Conservation Zone (NCZ).
    • The Aravallis were an integral part of the NCZ in the current Regional Plan-2021.
    • This has left Aravallis open to unlimited real estate construction.
    • Similarly, the phrase “forest areas” has been deleted from the NCZ also. This will drastically reduce the forest cover that is eligible for NCZ zoning protection.

    Why Aravallis matters?

     

    • The Aravallis are home to over 400 species of native trees, shrubs and herbs, more than 200 native and migratory bird species, and wildlife that includes leopards, jackals, hyenas, mongoose and civet cats.
    • They are crucial to groundwater recharge, which is significant given the water scarcity the region faces during harsh summer months.
    • The thick forest cover helps to naturally purify air in a region plagued by high levels of vehicular and industrial pollution through the year.

    Back2Basics:  Aravali Range

    • The Aravali is a mountain range in Northwestern India, running approximately 670 km in a southwest direction, starting near Delhi, passing through southern Haryana and Rajasthan, and ending in Gujarat.
    • The highest peak is Guru Shikhar at 1,722 meters.
    • The Aravalli Range, an eroded stub of ancient mountains, is the oldest range of fold mountains in India.
    • The natural history of the Aravalli Range dates back to times when the Indian Plate was separated from the Eurasian Plate by an ocean.
    • Three major rivers and their tributaries flow from the Aravalli, namely Banas and Sahibi rivers which are tributaries of Yamuna, as well as Luni River which flows into the Rann of Kutch.

     

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  • Zebrafish study reveals how the brain makes its connections

    Recent work by researchers at the National Centre of Biological Sciences, Bengaluru, has thrown light on what stimulates the synapses (connection of nerve cells) to form.

    What are Synapses?

    • Neurons, or nerve cells, in the brain connect by means of junctions known as synapses through which they transmit signals.
    • There are two types of synapses – chemical and electrical:

    (1) Chemical Synapse

    • In this, there is a space of about 20 nanometres between two neurons, and the way they communicate is this: One neuron converts electrical signal into chemical signals.
    • This chemical is released into the synaptic space and the receiving neuron converts the chemical signal back into an electrical signal.

    (2) Electrical synapse

    • In these synapses, the two neurons have a physical connection and the conversion of electrical to chemical need not occur, and they communicate directly.
    • Electrical synapses are like a physical wire, communication is faster but they are also fewer in number.

    Observing these synapses

    • Researchers from TIFR-National Centre of Biological Sciences, Bengaluru, have chosen Zebrafish as a model organism to study this process.
    • Zebrafish are transparent and neuron development in larval zebrafish can be observed from day to day by injecting a dye or by engineering the fish to express fluorescent proteins.
    • It was observed that electrical synapses are formed before chemical synapses, they are like a blueprint in which neurons make a handshake. This results in the making of chemical synapses.
    • Research on organisms such as leeches showed that if you remove electrical synapses, the chemical synapses do not form.
    • However, the mechanism of how it happens in higher organisms such as vertebrates was not known.

    What induces these synapses?

    • The group observed that knocking out a particular protein known as the gap junction delta 2b (gjd2b) in the cerebellum of zebrafish affected levels of the enzyme CaMKII.
    • Levels of CaMKII were seen to increase in the Purkinje neurons in the cerebellum.
    • These neurons and the cerebellum itself control coordination of movements in the organism.

    Why study this?

    • In humans for example, excess abuse of alcohol leads to damage of these cells, which results in lack of coordination in movement.
    • The cerebellum shows an evolutionary continuity in all vertebrates, so, too, the Purkinje neurons.
    • Even though fish and humans diverged from a common ancestor about 500 million years ago, the cerebellum has been evolutionarily conserved.
    • While zebrafish have about 300-400 Purkinje neurons, humans have thousands of these.

     

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  • Places in news: Orang National Park

    The Assam government has recently issued a preliminary notification for adding 200.32 sq. km to the 78.82 sq. km Orang National Park, the State’s oldest reserve, about 110 km northeast of Guwahati.

    The government had in September 21 dropped the ‘Rajiv Gandhi’ prefix to Orang given by the government in 1992.

    Orang National Park

    • Orang NP is located on the northern bank of the Brahmaputra River in the Darrang and Sonitpur districts of Assam.
    • It was established as a sanctuary in 1985 and declared a national park in 1999.
    • It has a rich flora and fauna, including great Indian rhinoceros, pygmy hog, Asian elephant, wild water buffalo and Bengal tiger.
    • Orang, on the northern bank of the river, is strategic to the Kaziranga Orang Riverine Landscape.
    • Tigers and rhinos are known to use the islands in this riverine landscape, about 180 km long, to hop between Orang and Kaziranga.

    Why in news?

    • The Assam government is pursuing a policy for the reintroduction of the gharial that became locally extinct more than six decades ago.
    • With better protection, the stretch of the Kaziranga-Orang landscape is ideal for sustaining the gharials.

    Back2Basics: National Park

    • Even before the Indian independence, sanctuaries had been created in the form of shooting blocks, game reserves or hunting reserves by the provisional governments or by the native rulers in their respective areas.
    • In 1936, the first National Park in India was created and named as the Hailey National Park, now called the Corbett National Park, in Uttaranchal.
    • The Wildlife Protection Act 1972 provides for the declaration of five types of protected areas viz. National Parks, Wildlife Sanctuaries, Community Reserves, Conservation Reserves and Tiger Reserves.
    • A National Park is defined by state government via notification under the WPA.
    • The state government can fix and alter boundaries of the National Parks with prior consultation and approval with National Board of Wildlife.
    • There is no need to pass an act for alternation of boundaries of National Parks.
    • No human activities are permitted in a National Park.

     

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  • For carbon sequestration, India must revisit its policy framework

    Context

    India’s pledge to set a net-zero target by 2070, at the COP26 summit, Glasgow, has again highlighted the importance of forests to help mitigate the challenges of climate change.

    Need for sustainable management of forests

    • The United Nations Framework Convention on Climate Change (UNFCC) framework (2013) of REDD+ for Reducing Emissions from Deforestation and Forest Degradation has highlighted the importance of forest along with the ‘sustainable management of forests for the conservation and enhancement of forest carbon stocks’.
    • Land-based sinks: In a study by Griscom (2017), land-based sinks (natural climate solutions which also include forests) can provide up to 37% of emission reduction and help in keeping the global temperature below 2° C.
    • Natural regeneration model: Recent research has favoured a natural regeneration model of restoration over the existing much-hyped mode of tree planting as such forests are said to secure nearly 32% carbon storage, as per one report of the Intergovernmental Panel on Climate Change.

    Degradation and deforestation in India

    •  As per the State of Forests Report (1989), the country had 2,57,409 sq.km (7.83% of its geographical area) under the open forest category, having a density of 10% to less than 40%.
    • However, in 30 years (2019) this has been increased to 3,04,499 sq. km (9.26%).
    • This means every year on average, nearly 1.57 lakh hectare of forests was degraded. 
    • Anthropogenic pressure: This degradation highlights the presence of anthropogenic pressures including encroachment, grazing, fire, which our forests are subjected to.

    Need for the participation of people to achieve target of carbon sequestration

    • The degradation warrants the participation of people as an essential and effective route to achieve the desired target of carbon sequestration through the restoration of forests.
    • As envisaged in National Forest Policy, 1988, India made its attempt, in 1990, to engage local communities in a partnership mode while protecting and managing forests and restoring wastelands with the concept of care and share. 
    • Later, the concept of forest development agencies was introduced to consolidate the efforts in an autonomous model.
    • Creation of joint forest management committees: The efforts to make this participatory approach operative resulted in the formation of nearly 1.18 lakh joint forest management committees managing over 25 million hectares of forest area.
    • Most of these became active and operative while implementing various projects financed by external agencies such as the World Bank, the Overseas Economic Cooperation Fund (OECF) Japan, the Department for International Development (DFID) United Kingdom and the European Union (EU).
    • A similar system of joint management in the case of national parks, sanctuaries and tiger reserves which existed in the name of eco-development committees initially proved effective.
    • However, the completion of the project period and lack of subsequent funding affected their functionality and also the protection of forests due to a lack of support from participating local communities including associated non-governmental organisations.
    • Customary participation: Except for the National Mission for Green India, in all other centrally sponsored programmes such as Project Tiger, fire management, Integrated Development of Wildlife Habitats (IDWH) including the Compensatory Afforestation Management and Planning Authority (CAMPA), the lack of priority and policy support to ensure the participation of local communities via the institutions of joint forest management committees slowly made their participation customary.
    • This caused a gradual decline in their effectiveness.
    • Role change: The role of local institutions of gram panchayat or joint forest management committees is now restricted to be a consultative institution instead of being partners in planning and implementation.
    • Implications of role change: This indifference and alienation from the participatory planning and implementation of various schemes

    Way forward

    • Revisit legal and policy mechanism: To achieve net-zero targets there is a need to revisit our existing legal and policy mechanisms.
    • Incentivise local communities: We also need to incentivise the local communities appropriately and ensure fund flow for restoration interventions.
    • There is a need for duly providing for the adequate participation of local people in planning and implementation through local institutions.
    • Replicate Telangana model: Political priority and appropriate policy interventions as done recently in Telangana by amending the panchayat and municipal acts and creating a provision for Telangana Haritha Nidhi need replication in other States.
    • Financial and institutional support mechanisms: These should be supported by enabling financial and institutional support mechanisms and negotiations with stakeholders
    • Though India did not become a signatory of the Glasgow Leaders’ Declaration on Forests and Land Use, the considerations of land tenure and the forest rights of participatory communities with accelerated finances will help aid steps in the race toward net zero.

    Consider the question “India is witnessing enormous degradation of forests and deforestation. This warrants the participation of people as an essential and effective route to achieve the desired target of carbon sequestration. In context of this, elaborate the importance of people participation and suggest the way forward.”

    Conclusion

    This inclusive approach with political prioritisation will not only help reduce emissions but also help to conserve and increase ‘our forest cover’ to ‘a third of our total area’. It will also protect our once rich and precious biological diversity.

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  • What are the First Advance Estimates of GDP?

    The Ministry of Statistics and Programme Implementation (MoSPI) has released the First Advance Estimates (FAE) for the current financial year (2021-22 or FY22).

    Tap to read more about:

    National Income Determination, GDP, GNP, NDP, NNP, Personal Income

    What is GDP?

    • GDP measures the monetary value of all goods and services produced within the domestic boundaries of a country within a timeframe (generally, a year).
    • It is slightly different from the other commonly used statistic for national income — the GNP.
    • The Gross National Product (GNP) measures the monetary value of all goods and services by the people and companies of a country regardless of where this value was created.

    GDP estimates for FY22

    • According to MoSPI, India’s GDP will grow by 9.2 per cent in 2020-21.
    • Last financial year, FY21, the GDP had contracted by 7.3%.

    What are the First Advance Estimates of GDP?

    • The FAE, which were first introduced in 2016-17, are typically published at the end of the first week of January.
    • They are the “first” official estimates of how GDP is expected to grow in that financial year.
    • But they are also the “advance” estimates because they are published long before the financial year (April to March) is over.
    • It is important to note that even though the FAE are published soon after the end of the third quarter (October, November, December), they do not include the formal Q3 GDP data.
    • Q3 data is published at the end of February as part of the Second Advance Estimates (SAE).

    Significance of FAE

    • Budgetary calculations: Since the SAE will be published next month, the main significance of FAE lies in the fact that they are the GDP estimates that the Union Finance Ministry uses to decide the next financial year’s budget allocations.
    • Basis for nominal GDP: From the Budget-making perspective, it is important to note what has happened to nominal GDP — both absolute level and its growth rate. That’s because nominal GDP is the actual observed variable.

    Note: Real GDP, which is the GDP after taking away the effect of inflation, is a derived metric. All Budget calculations start with the nominal GDP.

    Real GDP = Nominal GDP — Inflation Rate

    The difference between the real and nominal GDP shows the levels of inflation in the year.

    How are the FAE arrived at before the end of the concerned financial year?

    Ans. Benchmark-Indicator method

    • The FAE are derived by extrapolating (uses ratio and proportion) the available data.
    • The approach for compiling the Advance Estimates is based on Benchmark-Indicator method.
    • In this, the estimates available for the previous year (2020-21 in this case) are extrapolated using relevant indicators reflecting the performance of sectors.”

    What are the main takeaways?

    #1 GDP Growth

    • At 9.2%, the real GDP growth rate for FY22 is slightly lower than most expectations, including RBI’s, which pegged it at 9.5%.
    • These estimates are based on data before the rise of the Omicron variant.

    #2 Role of high inflation

    • For FY22, while real GDP (with 2011-12 base prices) will grow by 9.2%, nominal GDP (calculated using current market prices) will grow by a whopping 17.6%.
    • The difference between the two growth rates — about 8.5 percentage points — is essentially a marker of inflation (or the rate at which average prices have increased in this financial year).

    #3 Private consumption continues to struggle

    • The FAE analyses the three main contributors to GDP — private consumption demand, investments in the economy, and government expenditures.
    • It shows that while the latter two are expected to claw back to the pre-Covid level, the first engine will continue to stay in a slump.

    #4 Average Indian is much worse off

    • For the bulk of the Indian population, thus, aggregate data recovering to pre-Covid levels are largely academic.
    • An average Indian has lost almost 2 years in terms of income levels and 3 years in terms of spending levels.

    Try this PYQ:

    Q. In the context of Indian economy, consider the following statements:

    1. The growth rate of GDP has steadily increased in the last five years.
    2. The growth rate in per capita income has steadily increased in the last five years.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

     

    Note: There can be no absolute answers to such questions unless the year is mentioned. Still try to substantiate your answer with the FY21 context.

     

    [wpdiscuz-feedback id=”k4u3k21e1t” question=”Please leave a feedback on this” opened=”1″]Do post it here.[/wpdiscuz-feedback]

     

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  • Omisure: India’s first RT-PCR kit to identify Omicron strain

    Omisure — India’s first home-grown testing kit has recently received approval from the Drugs Controller General of India.

    About Omisure

    • Omisure is an omicron detecting RT-PCR kit developed by the Mumbai-based Tata Medical and Diagnostics Ltd (TATA MD) in partnership with the Indian Council of Medical Research (ICMR).
    • It can differentiate the omicron strain of the novel coronavirus from the delta, alpha and the other variants in under four hours.
    • It can diagnose this variant in a single step

    How does it work?

    • This new kit can identify the Omicron variant by targeting two regions of the S or the spike gene.
    • This gene codes for the spike protein, which helps the novel coronavirus enter and infect human cells.
    • The S, the Enveloped (E), and Nucleocapsid (N) genes are some of the targets of conventional RT-PCR tests.
    • When it detects these genes, a patient sample is labelled positive. As omicron bears heavy mutations in the S gene, the RT-PCR can sometimes miss it.
    • The absence of S gene likely indicates omicron’s presence.
    • This is called S gene dropout or S gene target failure — and is one of the targets of Omisure.

    How does Omisure compare with gene sequencing?

    • Gene sequencing reads the order of nucleotides, which are the building blocks of deoxyribonucleic acid (DNA) and ribonucleic acid (RNA).
    • Despite being considered the gold standard, sequencing has a few limitations.
    • It is slow, expensive and complicated. It is a multi-step process.
    • It begins with extracting the virus’ RNA from patient samples, converting it into DNA, amplifying or multiplying it through RT-PCR before finally sending it for gene sequencing.
    • This entire process can take as many as three days.

    Back2Basics:

    PCR Test for Diagnosis of the COVID-19

     

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  • Exercise Sea Dragon 22

    India is among the six Indo-Pacific nations participating in Exercise Sea Dragon 22.

    Sea Dragon 22

    • It is a multi-lateral anti-submarine warfare exercise in the Pacific Ocean hosted by the US.
    • The exercise includes the navies of India, Australia, Canada, Japan, the US and South Korea.
    • India, Japan, Australia and America are also part of the Quad, and also participate in the Malabar exercise.
    • It includes in-flight training, ranging from tracking simulated targets to the final problem of tracking a live US Navy submarine.

    Significance of the exercise

    • The exercise is significant as almost all of the participating countries have strained relations with China.
    • China is expanding its prowess in the Indo-Pacific under its Look West Policy.

    Also, take time to read about all major exercises:

    Various Defence Exercises in News

     

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  • What are Scheduled Banks?

    The Reserve Bank of India (RBI) has informed that Airtel Payments Bank Ltd. has been categorized as a Scheduled Bank.

    Why such a move?

    • With this, the bank can now pitch for government-issued Requests for Proposals (RFP) and primary auctions.
    • It can undertake both Central and State Government businesses participating in government-operated welfare schemes.

    What are Scheduled Banks?

    • Scheduled Banks refer to those banks which have been included in the Second Schedule of Reserve Bank of India Act, 1934.
    • Reserve Bank of India (RBI) in turn includes only those banks in this Schedule which satisfy the criteria laid down vide section 42(6)(a) of the said Act.
    • Every Scheduled bank enjoys two types of principal facilities: it becomes eligible for debts/loans at the bank rate from the RBI; and, it automatically acquires the membership of clearing house.
    • Banks not under this Schedule are called Non-Scheduled Banks

    Types of Scheduled Banks

    There are two main categories of commercial banks in India namely:

    1. Scheduled Commercial banks
    2. Scheduled Co-operative banks

    Scheduled commercial Banks are further divided into 5 types as below:

    1. Nationalised Banks
    2. Development Banks
    3. Regional Rural Banks
    4. Foreign Banks
    5. Private sector Banks

    Payment bank (currently four banks Airtel Payments Bank, Fino Payments Bank, India Post Payments Bank, Paytm Payments Bank have been granted Scheduled bank status).

    Scheduled Co-operative banks are further divided into 2 types namely:

    1. Scheduled State Co-operative banks
    2. Scheduled Urban Co-operative banks

     

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  • What is Antrix- Devas Multimedia Deal?

    A Canadian court has ordered the seizure of more than $30 million worth of Airport Authority of India’s assets.

    Background

    • In 2005, Devas Multimedia signed an agreement with Antrix —a commercial arm of the IISRO —to provide multimedia services to mobile users using the leased S-band satellite spectrum to be provided by Antrix.
    • In 2011, the UPA-2 government canceled this agreement on the ground that it needed the S-band satellite spectrum for national security and other social purposes.
    • This led to arbitration between Antrix and Devas at the International Chambers of Commerce (ICC) and two bilateral investment treaty (BIT) arbitrations. India lost all three disputes.

    India’s non-compliance

    • AAI and Air India are being targeted because they are Indian public sector entities with overseas assets and serve as a proxy for the government of India.
    • The Canada court can do so through the concept of restrictive immunity.
    • In the meanwhile, the National Company Law Tribunal (India) ordered the liquidation of Devas Multimedia on the ground that the affairs of the company were being carried on fraudulently.

    Why did India cancel the deal?

    • The scandal first came to light when in 2011, the news reported that there were some irregularities in the agreement between Antrix and Devas.
    • They reported the findings of a draft audit report and pointed out discrepancies including financial mismanagement, conflict of interest, non-compliance of rules, and favoritism.
    • This revelation came at the heel of the 2G spectrum scam which was condemned for the high level of corruption.

    How can a Canadian court order the attachment of Indian assets?

    • State immunity — a well-established principle of international law — shields a state and its property against legal proceedings in the courts of other countries.
    • This covers immunity from both jurisdiction and execution.
    • However, there is no international legal instrument in force dealing with state immunity in the municipal legal systems of different countries, which has created an international void.
    • Consequently, countries have filled this void through their national legislations and domestic judicial practices on state immunity.
    • Typically, prominent jurisdictions such as Canada follow the concept of restrictive immunity (a foreign State is immune only for sovereign functions) and not absolute immunity.

    How can assets of AAI be seized when the claim is against India?

    • In execution proceedings, assets of an entity can be seized if that entity is an alter ego of the State that fails to comply with the arbitral award.
    • In other words, if the foreign sovereign exercises such extensive control over the entity, then the presumption that the entity has a separate corporate character is set aside.
    • Thus, the Canadian court must have concluded that the Indian government extensively controls AAI.

    What options does India have?

    • The first option is to comply with the two adverse BIT awards. However, it is highly unlikely that India would do so.
    • The second option is to challenge this decision in an appellate court in Canada as per Canadian law where India can try proving that the ‘extensive control requirement’ is not met in the case of AAI.
    • However, state immunity from execution is purely a procedural hurdle to the enforcement of the BIT award.
    • It cannot justify India’s breach of its international law obligations enshrined in the two BITs and the continued failure to comply with the arbitral awards.

    Back2Basics: New Space India Limited (NSIL)

    • It functions under the administrative control of the Department of Space (DOS).
    • It aims to commercially exploit the research and development work of ISRO Centres and constituent units of DOS.
    • The NSIL would enable Indian Industries to scale up high-technology manufacturing and production base for meeting the growing needs of the Indian space program.
    • It would further spur the growth of Indian Industries in the space sector.

    ANTRIX

    • Antrix Corporation Limited (ACL), Bengaluru is a wholly-owned Government of India Company under the administrative control of the Department of Space.
    • It is as a marketing arm of ISRO for promotion and commercial exploitation of space products, technical consultancy services and transfer of technologies developed by ISRO.
    • Antrix is engaged in providing Space products and services to international customers worldwide.

     

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