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GS Paper: GS3

  • What is the Regression Theorem?

    This newscard is an excerpt from the original article published in the TH e-paper edition.

    Regression Theorem

    • The regression theorem refers to a theory of the origin of money.
    • It states that money must have originated as a commodity with intrinsic value in the marketplace.
    • The idea was first proposed by Austrian economist Carl Menger in his 1892 work “On the Origins of Money.”
    • This theory is offered as an alternative to the state theory of money which states that money (fiat money) can come into existence only when it is backed by the government.

    Evolution of Money

    • The regression theory argues that money comes into existence through a gradual process of evolution in the marketplace, without the need for any government sanction.
    • Economists who try to explain the regression theory generally start with the question of why money, particularly fiat money which is simply just a piece of paper, has any value at all in the marketplace.
    • The most common answer to this question is that fiat money can be used to buy other useful goods such as houses, cars etc.
    • But this answer is insufficient —it tries to tackle the question of why fiat money can buy other useful goods by simply saying that it can buy other useful goods.

    Why is fiat money, which has little intrinsic value, considered valuable?

    • In real life, people accept money in exchange for goods in the present because they are aware that money was accepted as a medium in exchange for other goods in the past.
    • For example, people accept wages in the US dollar today because they are aware that the dollar was used to buy cars, groceries and other goods in the market yesterday.
    • This gives them confidence in the value of their money.

    What made people accept money in exchange for other useful goods in the past?

    Ans. Intrinsic Value

    • Economists who advocate the regression theory of money argue that money must have originated as a useful commodity like gold or silver or the barter system.
    • This is the only way, they argue, it could have possibly been accepted by people in exchange for other useful goods at some point in the past.
    • If a thing did not possess any intrinsic value, it is unlikely that people in the marketplace would have accepted it in exchange for other goods and services.
    • So, commodities like gold and silver must have been traded in exchange for other goods and services at some point in history purely because they offered some kind of personal utility to people.
    • For example, these precious metals could have been used to make ornaments, to fill teeth, etc., which gives them intrinsic value.
    • They maintain value over time because their supply cannot be easily ramped up as mining gold involves significant production costs.

     

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  • Places in news: Deucha Pachami Coal Mines

    Thousands of Tribals fear displacement following the implementation of the project to mine coals and basalts from the Deucha-Pachami coal block in West Bengal’s Birbhoom district.

    Deucha-Pachami Mines

    • Deucha-Pachami-Dewanganj-Harinsinga coal block is the second-largest coal block in the world; it is the largest in India.
    • It is located in Deucha and Panchamati area under Mohamad bazar community Development Block of Birbhum district, West Bengal.
    • The block has a thick coal seam trapped between equally thick layers of rocks, mostly basalt. It has a great economic value.
    • The existence of these thick basalt layers, however, makes mining of coal difficult; foreign investment and technology will be hence needed for mining.

     

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  • SEBI tweaks share sale norms for IPOs

    The Securities & Exchange Board of India (SEBI) has approved amendments to a slew of regulations to tighten the Initial Public Offering (IPO) process and norms governing the utilization of IPO proceeds by promoters.

    What is an IPO?

    • Every company needs money to grow and expand.
    • They do this by borrowing or by issuing shares.
    • If the company decides to opt for the second route of issuing shares, it must invite public investors to buy its shares.
    • This is its first public invitation in the stock market and is called the Initial Public Offering (IPO).

    What does it mean for investors to buy shares?

    • When one buys such shares, he/she makes an IPO investment.
    • He/she gets ownership in the company, proportionate to the value of your shares.
    • These shares then get listed on the stock exchange.
    • The stock exchange is where you can sell your existing shares in the company or buy more.

    How does an IPO work?

    • The Securities and Exchange Board of India (SEBI) regulates the entire process of investment via an IPO in India.
    • A company intending to issue shares through IPOs first registers with SEBI.
    • SEBI scrutinizes the documents submitted, and only then approves them.

    Who can hold IPOs?

    • It could be a new, young company or an old company that decides to be listed on an exchange and hence goes public.

    What are the recent regulations?

    • In its board meeting, SEBI approved conditions for sale of shares by significant shareholders in the Offer-For-Sale (OFS) process via an IPO and has extended the lock-in period for anchor investors to 90 days.
    • Shares offered for sale by shareholders with more than 20% of pre-issue shareholding of the issuer, should not exceed 50% of their holding.
    • If they hold less than 20%, then the offer for sale should not exceed 10% of their holding of the issue.
    • These changes are as per proposals recommended by SEBI’s Primary Market Advisory Committee.

    Also read:

    [Sansad TV] The IPO Boom

     

    Try this question from CSP 2019:

    Q.In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.?

    1. Ad Hoc Committees set up by the Parliament
    2. Parliamentary Department Related Standing Committees
    3. Finance Commission
    4. Financial Sector Legislative Reforms Commission
    5. NITI Aayog

    Select the correct answer using the code given below:

    (a) 1 and 2

    (b) 1, 3 and 4

    (c) 3, 4 and 5

    (d) 2 and 5

     

    [wpdiscuz-feedback id=”tmup8r61ul” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

     

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  • Plea seeks GI tag for Arunachal Apatani textile product

    An application seeking a Geographical Indication (GI) tag for the Arunachal Pradesh Apatani textile product has been filed by a firm.

    Apatani textile

    • The Apatani weave comes from the Apatani tribe of Arunachal Pradesh living at Ziro, the headquarters of lower Subansiri district.
    • The woven fabric of this tribe is known for its geometric and zigzag patterns and also for its angular designs.
    • The community weaves its own textiles for various occasions, including rituals and cultural festivals.
    • The tribe predominantly weaves shawls known as jig-jiro and jilan or jackets called supuntarii.
    • The traditional handloom of this tribe is a type of loin loom, which is called Chichin, and is similar to the traditional handloom of the Nyishi tribe.

    What makes it special?

    • The people here use different leaves and plant resources for organic dying the cotton yarns in their traditional ways.
    • Only women folk are engaged in weaving.

     

    Answer this PYQ in the comment box:

     

    Q.Which of the following has/have been accorded ‘Geographical Indication’ status?

    1. Banaras Brocades and Sarees
    2. Rajasthani Daal-Bati-Churma
    3. Tirupathi Laddu

    Select the correct answer using the code given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

     

    [wpdiscuz-feedback id=”3krodtowqp” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

    About Geographical Indication

    • A GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
    • Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
    • India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 w.e.f. September 2003.
    • GIs have been defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
    • GI is granted for a term of 10 years in India. As of today, more than 300 GI tags has been allocated so far in India (*Wikipedia).
    • The tag stands valid for 10 years.

     

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  • Gaps in draft regulations on Extended Producer Responsibility (EPR)

    Context

    In October, the Environment Ministry published draft regulations on Extended Producer Responsibility (EPR), set to come into effect by the end of this year. These regulations denote a backslide, particularly with respect to integration of the informal sector.

    What is EPR?

    • Extended Producer Responsibility (EPR) requires the manufacturer of a product, or the party that introduces the product into the community, to take responsibility for its life cycle.
    • An FMCG company should not only account for the costs of making, packing and distributing a packet of chips, but also for the collection and recycling/reuse of the packet.

    Shortcomings in the guidelines

    The guidelines fall short in three areas: people, plastics and processing.

    [1] Integration of informal sector is lacking

    • By failing to mention waste pickers or outlining mechanisms for their incorporation under EPR, the guidelines are retrogressive.
    • For decades, waste pickers, working in dangerous and unsanitary conditions, have picked up what we throw away.
    • Besides, by diverting waste towards recycling and reuse, waste pickers also subsidise local governments responsible for solid waste management.
    • Further, they reduce the amount of waste accumulating in cities, water bodies and dumpsites and increase recycling and reuse, creating environmental and public health benefits.
    • Between 1.5 and 4 million waste pickers in India work without social security, health insurance, minimum wages or basic protective gear.
    • Suggestions:  An effective EPR framework should address the issue of plastics and plastic waste management in tandem with the existing machinery, minimise duplication and lead to a positive environmental impact, with monitoring mechanisms including penalties for non-compliance.
    • EPR funds could be deployed for mapping and registration of the informal sector actors, building their capacity, upgrading infrastructure, promoting technology transfer, and creating closed loop feedback and monitoring mechanisms.

    [2] The scope of plastic covered need to be altered

    • The EPR guidelines are limited to plastic packaging.
    • There are other multi-material plastic items like sanitary pads, chappals, and polyester that pose a huge waste management challenge today, but have been left out of the scope of EPR.
    • Three categories of plastic packaging: Plastic packaging can be roughly grouped into three categories: recyclable and effectively handled by the informal sector, technologically recyclable but not economically viable to recycle, technologically challenging to recycle (or non-recyclable).
    • [1] Rigid plastics like PET and HDPE are effectively recycled.
    • Suggestion: The government could support and strengthen the informal recycling chain by bridging gaps in adequate physical spaces, infrastructure, etc.
    • [2] Typically flexible plastics like LDPE and PP bags are recyclable, but due to their contamination with organic waste, lightweight, and high volume, the costs of recycling are prohibitively expensive relative to the market value of the output.
    • Suggestion: Market value for these plastics can be increased by increasing the demand for and use of recycled plastics in packaging, thus creating the value to accommodate the current costs of recycling.
    • [3] Multi-layered and multi-material plastics are low weight and voluminous, making them expensive to handle and transport.
    • Since they are primarily used in food packaging, they often attract rodents, making storage problematic.
    • Even if this plastic is picked, recycling is technologically challenging as it is heterogeneous material.
    • The Plastic Waste Management Rules mandated the phase-out of these plastics.
    • However, in 2018, this mandate was reversed.

    [3] Processing technologies need to be closely evaluated

    • Not all processing is recycling.
    • Processes like waste-to-energy, co-processing and incineration have been proven to release carbon dioxide, particulate matter, harmful dioxins and furans which have negative climate and health impacts.
    • While the environmental impact and desirability of these processes continues to be debated, the draft regulations legitimise them to justify the continued production of multi-layered plastics.
    • Technologies like chemical recycling and pyrolysis are capital-intensive, yielding low returns and running into frequent breakdowns and technological problems.
    • They also release carbon dioxide and other pollutants.
    • These end-of-life processes are economically, environmentally and operationally unsustainable.
    • A number of gasification, pyrolysis and other chemical recycling projects have figured in accidents such as fires, explosions and financial losses.

    Way forward

    • Address issues of the informal sector: The consultation process should involve informal workers.
    • Alter the scope of plastics covered: The scope of plastics covered by the guidelines could be altered to exclude those plastics which are already efficiently recycled and to include other plastic and multi-material items.
    • Processing technologies should be closely evaluated: And end-of-life processing technologies should be closely evaluated, based not only on their health and environmental impacts, but also on the implications for continued production of low-quality and multi-layered plastics.

    Consider the question ” The Environment Ministry published draft regulations on Extended Producer Responsibility (EPR). Examine the issues with the regulations and suggest the way forward” 

    Conclusion

    In conclusion, the government should redo the consultation process for the draft guidelines.

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  • Left-Wing Extremism (LWE) in India

    Six Maoists including four women cadres were killed morning in an “exchange of fire” with a joint team of Telangana and Chhattisgarh police in Sukma district of Chhattisgarh.

    What is Naxalism?

    • The term ‘Naxal’ derives its name from the village Naxalbari of district Darjeeling in West Bengal, where the movement originated in 1967 under the leadership of Charu Majumdar and Kanu Sanyal.
    • It refers to the use of violence to destabilize the state through various communist guerrilla groups.
    • Naxalites are far-left radical communists who derive their political ideology from the teachings of Mao Zedong.

    History and evolution

    • Russian Revolution: Naxalism in India, like any other leftist movement around the globe draws its ideological basis from the Russian revolution.
    • Overthrowing Tsarist Regime: Lenin successfully fought against the Czarist Rule through a combination of peasant movement and an armed struggle.
    • Marxian ideology of class struggle: The prime intent was to bestow power in the hands of the exploited and marginalized and enforce societal control over governance and nation building.
    • Neo-Marxism: After the success of the Lenin-led revolution in Russia, the intellectual class in many countries got inspired. Prominent amongst them were Fidel Castro and Mao Zedong.

    Root cause of origin in India

    • Corporate exploitation: Since Eastern India is rich in natural resources including forests, minerals and mines, tribal face exploitation and harassment from government and corporate bodies targeting to extract those resources.
    • Tribal alienation: Tribal communities have been systematically alienated from their traditional rights over natural resources after independence.
    • Livelihood losses: Tribal livelihood is at stake due to depletion of natural resource base.
    • Forceful displacement: Forceful displacement from their homeland destroys their traditional governance system.
    • Absence of governance: In such exploited areas, the absence of governance becomes a self-fulfilling prophecy since the delivery systems are extinguished through killings and intimidation.
    • Foreign provocations: Many of LWE outfits are supported by external forces inimical to India and the Maoists consider such alliances as strategic assets.

    Other factors:

    1. Oppression and HR violations by Security Forces e.g. AFSPA
    2. Violation of Constitutional Protections under PESA and FRA
    3. Prevalence of Acute Poverty

    Impact of LWE

    • Romanticism without a cause: Some sections of the society, especially the younger generation, have romantic illusions about the Maoists, arising out of an incomplete understanding of their ideology of Class –Struggle.
    • Extreme violence: Their doctrine glorifies violence as the primary means to overwhelm the existing socio-economic and political structures.
    • Destruction of governance mechanism: LWEs aims at creating a vacuum at the grassroots level of the existing governance structures by killing lower-level government officials, police personnel of the local police stations and the people’s representatives of the PRIs.
    • Radicalization of youths: After creating a political and governance vacuum, they coerce the local population to join the movement.
    • Urban-Maoism: Many extremists have facilitated mass-mobilization in semi-urban and urban areas through ostensibly democratic means often led by well-educated intellectuals.

    Outcomes of perpetrating LWE

    The Leftist organizations skilfully use state structures and legal processes to further the Maoist agenda and weaken the enforcement regime through:

    1. Recruitment of ‘professional revolutionaries’
    2. Raising funds for the insurgency
    3. Creating urban shelters for underground cadres
    4. Providing legal assistance to arrested cadres and
    5. Mass- mobilization by agitating over issues of relevance/ convenience

    Govt initiatives for LWE affected areas

    • Aspirational Districts: The MHA has been tasked with the monitoring of the Aspirational districts programme in 35 LWE affected districts.
    • HRD measures: Building of schools under the Eklavya model.
    • Road Connectivity Project for LWE affected areas (RRP-II): This aims for improving road connectivity in LWE affected States. Under this, 9279 km of roads and 392 bridges are sanctioned.
    • Naxal Surrender Policy: It aims to wean away misguided youth and hardcore naxalites who have strayed into the fold of the naxal movement and cannot find a way back.

    SAMADHAN doctrine: It encompasses the entire strategy of government from short-term policy to long-term policy formulated at different levels. SAMADHAN stands for-

    • S- Smart Leadership
    • A- Aggressive Strategy
    • M- Motivation and Training
    • A- Actionable Intelligence
    • D- Dashboard Based KPIs (Key Performance Indicators) and KRAs (Key Result Areas)
    • H- Harnessing Technology
    • A- Action plan for each Theatre
    • N- No access to Financing

    Way forward

    • Indian counterinsurgency has to work with a dual objective of defeating the insurgents militarily and fully quell the insurgent impulses. This will need institutional overhauls.
    • States must do more to synergize their efforts by launching coordinated operations, thereby denying Maoists any space for maneuverability.
    • On parallel grounds, it is also important to segregate the population from the insurgents both operationally and ideologically.
    • The conflict over the distribution of resources can be mended with economic development.

     

    With inputs from:

    https://www.mha.gov.in/division_of_mha/left-wing-extremism-division

     

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  • Status of 5G Rollout in India

    Delhi, Gurgaon, Mumbai, Bengaluru, Kolkata, Ahmedabad, Hyderabad, and Pune will be the first places to get 5G services next year in 2022, informed the Department of Telecommunications (DoT).

    Must read:

    [Burning Issue] 5G Technology

    What is 5G technology?

    • 5G or fifth generation is the latest upgrade in the long-term evolution (LTE) mobile broadband networks.
    • It’s a unified platform which is much more capable than previous mobile services with more capacity, lower latency, faster data delivery rate and better utilisation of spectrum.

    5G spectrum

    5G mainly works in 3 bands, namely low, mid and high-frequency spectrum — all of which have their own uses as well as limitations.

    (1) Low band spectrum

    • It has a great promise in terms of coverage and speed of internet and data exchange but the maximum speed is limited to 100 Mbps (Megabits per second).
    • So Telcos can use and install it for commercial cell phone users who may not have specific demands for very high speed internet, the low band spectrum may not be optimal for specialized needs of the industry.

    (2) Mid-band spectrum

    • It offers higher speeds compared to the low band, but has limitations in terms of coverage area and penetration of signals.
    • This band may be used by industries and specialized factory units for building captive networks that can be moulded into the needs of that particular industry.

    (3) High-band spectrum

    • It offers the highest speed of all the three bands, but has extremely limited coverage and signal penetration strength.
    • Internet speeds in the high-band spectrum of 5G has been tested to be as high as 20 Gbps (giga bits per second), while, in most cases, the maximum internet data speed in 4G has been recorded at 1 Gbps.

    Stipulated bands for roll-out

    • While the low band spectrum has shown great promise in terms of coverage and speed of Internet and data exchange, the maximum speed is limited to 100 Mbps (Megabits per second).
    • This means that while telecoms can use and install it for commercial cellphone users who may not have specific demands for very high speed Internet.
    • However the low band spectrum may not be optimal for specialised needs of the industry.
    • The mid-band spectrum, on the other hand, offers higher speeds compared to the low band, but has limitations in terms of coverage area and penetration of signals.

    Where does India stand in the 5G technology race?

    • Like other global players, India had, in 2018, planned to start 5G services as soon as possible, with an aim to capitalise on the better network speeds and strength that the technology promised.
    • India’s private telecom players have been urging the DoT to lay out a clear road map of spectrum allocation and 5G frequency bands.

    Issues in roll-out

    • Monopoly: One big hurdle, however, is the lack of flow of cash and adequate capital with some players due to an existing monopoly.
    • AGR dues: There is an ongoing dispute between the telecoms and the government mainly over the definition of Adjusted Gross Revenue.
    • Device upgrade: As far as commercial smartphones are concerned, some newer devices in the market claim to be 5G-ready but are much costlier.

    Why is there early roll-out in big cities?

    • Services penetration: One of the reasons why the bigger cities were chosen for these trials is their telecom services penetration, making it easier to convince more people to upgrade from 4G.
    • Cost management: Since the costs for 5G services are initially going to be on the higher side, it would be wise to test the service in areas where more consumers would find them affordable.
    • Testing ground: A third reason is that cities provide all kinds of locations, such as walled complexes and open spaces, that are suitable for testing of various 5G bands.

    What is the global progress on 5G?

    More than governments, global telecom companies have started building 5G networks and rolling it out to their customers on a trial basis.

    • South Korea: Samsung, which had started researching on 5G technology way back in 2011, has taken the lead when it comes to building the hardware for 5G networks for several companies.
    • USA: In countries like the US, companies such as AT&T, T-mobile, and Verizon have taken the lead when it comes to rolling out commercial 5G for their users.
    • China: In other countries such as China, some of the telecoms such as China Unicom had started 5G trials as early as 2018, and have since rolled out the commercial services for users.

    What changes for consumers with 5G?

    • One of the major changes will be in terms of rich experiences on their phones and other connected devices.
    • For instance, users will be able to stream videos with multiple camera angles during sports matches or even play immersive video games using VR headsets or other accessories.
    • This next-generation telecom network will also enable a mesh of connected Internet of Things (IoT)-enabled devices and services with zero-fail rate, as in the case of connected cars.
    • 5G could also draw high-speed mobile broadband connectivity to replace existing broadband services, especially in locations where these services are constrained, provided there isn’t a huge price differential.

     

    Try this question from CSP 2019:

     

    With reference to communication technologies, what is/are the difference/differences between LTE (Long-Term Evolution) and VoLTE (Voice over Long-Term Evolution)?

    1. LTE ‘is commonly marketed as 3G and VoLTE is commonly marketed as advanced 3G.
    2. LTE is data-only technology and VoLTE is voice-only technology.

    Select the correct answer using the code given below.

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

     

    [wpdiscuz-feedback id=”nqicad1d3m” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

     

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  • Missionaries of Charity denied FCRA nod

    The Union Home Ministry has refused to renew the Foreign Contribution Regulation Act (FCRA) registration of Missionaries of Charity (MoC) set up by Nobel laureate Mother Teresa.

    About Foreign Contribution Regulation Act (FCRA)

    • The FCRA regulates foreign donations and ensures that such contributions do not adversely affect internal security.
    • First enacted in 1976, it was amended in 2010 when a slew of new measures was adopted to regulate foreign donations.
    • The FCRA is applicable to all associations, groups and NGOs which intend to receive foreign donations.
    • It is mandatory for all such NGOs to register themselves under the FCRA.
    • The registration is initially valid for five years and it can be renewed subsequently if they comply with all norms.

    Why was FCRA enacted?

    • The FCRA sought to consolidate the acceptance and utilisation of foreign contribution or foreign hospitality by individuals, associations or companies.
    • It sought to prohibit such contributions from being used for activities detrimental to national interest.

    What was the recent Amendment?

    • The FCRA was amended in September 2020 to introduce some new restrictions.
    • The Government says it did so because it found that many recipients were wanting in compliance with provisions relating to filing of annual returns and maintenance of accounts.
    • Many did not utilise the funds received for the intended objectives.
    • It claimed that the annual inflow as foreign contributions almost doubled between 2010 and 2019.
    • The FCRA registration of 19,000 organisations was cancelled and, in some cases, prosecution was also initiated.

    How has the law changed?

    There are at least three major changes that NGOs find too restrictive.

    • Prohibition of fund transfer: An amendment to Section 7 of the Act completely prohibits the transfer of foreign funds received by an organisation to any other individual or association.
    • Directed and single bank account: Another amendment mandates that every person (or association) granted a certificate or prior permission to receive overseas funds must open an FCRA bank account in a designated branch of the SBI in New Delhi.
    • Utilization of funds: Fund All foreign funds should be received only in this account and none other. However, the recipients are allowed to open another FCRA bank account in any scheduled bank for utilisation.
    • Shared information: The designated bank will inform authorities about any foreign remittance with details about its source and the manner in which it was received.
    • Aadhaar mandate: In addition, the Government is also authorised to take the Aadhaar numbers of all the key functionaries of any organisation that applies for FCRA registration or for prior approval for receiving foreign funds.
    • Cap on administrative expenditure: Another change is that the portion of the receipts allowed as administrative expenditure has been reduced from 50% to 20%.

    What is the criticism against these changes?

    • Arbitrary restrictions: NGOs questioning the law consider the prohibition on transfer arbitrary and too heavy a restriction.
    • Non-sharing of funds: One of its consequences is that recipients cannot fund other organisations. When foreign help is received as material, it becomes impossible to share the aid.
    • Irrationality of designated bank accounts: There is no rational link between designating a particular branch of a bank with the objective of preserving national interest.
    • Un-ease of operation: Due to Delhi based bank account, it is also inconvenient as the NGOS might be operating elsewhere.
    • Illogical narrative: ‘National security’ cannot be cited as a reason without adequate justification as observed by the Supreme Court in Pegasus Case.

    What does the Government say?

    • Zero tolerance against intervention: The amendments were necessary to prevent foreign state and non-state actors from interfering with the country’s polity and internal matters.
    • Diversion of foreign funds: The changes are also needed to prevent malpractices by NGOs and diversion of foreign funds.
    • Fund flow monitoring: The provision of having one designated bank for receiving foreign funds is aimed at making it easier to monitor the flow of funds.
    • Ease of operation: The Government clarified that there was no need for anyone to come to Delhi to open the account as it can be done remotely.

     

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  • All you need to know about the New  Labour Codes

    India is likely to implement four new labour codes on wages, social security, industrial relations, and occupational safety by the next fiscal year beginning 2022.

    Must read:

    [Burning Issue] New Labour Laws

    New Labour Codes

    The four codes likely to be implemented in FY23 are:

    1. Code on Wages
    2. Industrial Relations Code
    3. Social Security Code, and
    4. Occupational Safety, Health and Working Conditions Code

    Objectives of the Labour Code

    • The new labor codes are aimed at facilitating ease of doing business in the country and seek to replace 29 cumbersome laws.
    • The objective is to encompass over 500 million organized and unorganized sector workers—90% of the workforce which has been outside labour laws.
    • The idea is to ensure that they receive wage security, social security and health security, gender equality in terms of remuneration, a minimum floor wage, make the lives of inter-state migrant workers easier.

    What is the current status of the codes?

    • The central government has completed the process of finalizing the draft rules, state governments are in the process of drafting the same.
    • With labor being a concurrent subject, states are in the process of pre-publishing draft rules for these reforms.

    How many labour laws do Indian states have?

    • The simplification of 29 labour laws into the four labour codes is expected be a watershed moment for labour reforms.
    • India currently has a web of multiple labour legislations, over 40 central laws and 100 state laws involving labour.
    • The Second National Commission on Labour (2002) recommended simplification to bring about transparency and uniformity.

    What are the major goals in these codes?

    • Social security benefits: With organized sector workers being approximately 10% of the total workforce, the new codes may ensure that social security benefits are for all.
    • Take-home salary: As per the proposed labour codes, total allowances such as house rent, leave, travel etc. are to be capped at 50% of the salary, while basic pay should account for the remaining 50%.
    • Four days work: There could also be a permissible four-day work week of 12 hours per day.

    How will it affect ease of doing business?

    • Labour productivity: It is likely to improve with both employees and employers developing a sense of being partners in wealth creation.
    • Labour reform: A transparent environment in terms of workers’ compensation, clear definition of employee rights and employer duties.
    • Compliance un-burdening: Simplified labour codes making compliance easier are likely to attract investments.
    • Formalization of the economy: With more workers in the organized sector, leakage in terms of direct as well as indirect taxes may be plugged.

     

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  • Study of distant Magnetar reveals facets of the Exotic Star

    An international group of researchers has succeeded in measuring for the first time the characteristics of a flare on a distant magnetar.

    What is a Magnetar?

    • Magnetars are the most magnetic stars in the universe.
    • It is a rare compact type of neutron star teeming with energy and magnetism.
    • It is an exotic type of neutron star, its defining feature that it has an ultra-powerful magnetic field.
    • The field is about 1,000 times stronger than a normal neutron star and about a trillion times stronger than the Earth’s.
    • Magnetars are relatively rare objects, with only about thirty having been spotted within the Milky Way so far.

    What is the recent study?

    • The studied magnetar is about 13 million light years away, in the direction of the NGC 253, a prominent galaxy in the Sculptor group of galaxies.
    • Its flare spewed within a few tenths of a second as much energy as the Sun would shed in 100,000 years.
    • It was captured accidentally on April 15, 2020, by the Atmosphere-Space Interactions Monitor instrument (ASIM) of the International Space Station.
    • This is the first study to characterize such a flare from so distant a magnetar.

    How do magnetars form?

    • During the course of their evolution, massive stars – with masses around 10-25 times the mass of the Sun – eventually collapse and shrink to form very compact objects called neutron stars.
    • A subset of these neutron stars is the so-called magnetars which possess intense magnetic fields.
    • These are highly dense and have breathtakingly high rotation speeds – they have rotational periods that can be just 0.3 to 12.0 seconds.

    What characterizes Magnetars?

    (1) Violent flares

    • The observed giant flare lasted approximately 160 milliseconds and during this time 1039 joules of energy was released.
    • The flare spewed as much energy in a tenth of a second that our Sun will radiate in 100,000 years.

    (2) Starquakes

    • Eruptions in magnetars are believed to be due to instabilities in their magnetosphere, or “starquakes” produced in their crust – a rigid, elastic layer about one kilometer thick.
    • This causes waves in the magnetosphere, and interaction between these waves causes dissipation of energy.

     

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