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GS Paper: GS3

  • JAL JEEVAN MISSION (PIB)

    What is Jal Jeevan Mission ?

    The Union Minister of Jal Shakti launched a special mission mode campaign to provide potable piped water supply in all schools and anganwadi centres across the nation within 100 days.

    About Jal Jeevan Mission

    • This mission was envisaged by the Prime Minister on 29th September, 2020 while releasing the ‘Margdarshika’ for Gram Panchayats and Paani Samitis for implementation of Jal Jeevan Mission (JJM).
    • Provisions have been made under Jal Jeevan Mission for ensuring safe water through tap water connection in schools, anganwadi centres, health care centres, etc.
    • National Jal Jeevan Mission has reached out to States/ UTs to ensure that during this campaign, Gram Sabhas are convened at the earliest to pass a resolution for providing safe water in all schools, anganwadi centres and other public institutions in the village in the next 100 days.
    • These facilities will be operated and maintained by the Gram Panchayat and/ or its sub-committee i.e. Village Water & Sanitation Committee or Paani Samiti.
    • Jal Jeevan Mission (JJM) aims at the universal coverage of provision of tap water connection to every rural home by 2024. Under the mission, special focus is on women and children.

     

  • Wildlife Week

    Celebrating Wildlife Week

    • Wildlife Week is celebrated every year in India between October 1 and 8.
    • The annual theme of the campaign is to promote the preservation of fauna – i.e. animal life.
    • Wildlife Week was conceptualized in 1952 with the overall goal of raising awareness to serve the long-term goal of safeguarding the lives of wildlife through critical action.
    • In addition, the Indian Government established an Indian Board of Wild Life which works to improve awareness towards the preservation of wildlife.
  • China’S Climate Commitment

    Context- Speaking at the UN General Assembly, Chinese President Xi Jinping made two promises that came as a welcome surprise to climate change watchers.

    What has China announced ?

    • First, Xi said, China would become carbon net-zero by the year 2060.
      • Net-zero is a state in which a country’s emissions are compensated by absorptions and removal of greenhouse gases from the atmosphere.
      • Absorption can be increased by creating more carbon sinks such as forests, while removal involves application of technologies such as carbon capture and storage.
    • Second, the Chinese President announced a small but important change in China’s already committed target for letting its emissions “peak”, from “by 2030” to “before 2030”.
      • That means China would not allow its greenhouse gas emissions to grow beyond that point.
      • Xi did not specify how soon “before 2030” means, but even this much is being seen as a very positive move from the world’s largest emitter.

    How significant is China’s commitment?

    • China is the world’s largest emitter of greenhouse gases. It accounts for almost 30% of global emissions, more than the combined emissions in the United States, the European Union and India, the three next biggest emitters.
    • Getting China to commit itself to a net-zero target is a big breakthrough, especially since countries have been reluctant to pledge themselves to such long term commitments.
    • So far, the European Union was the only big emitter to have committed itself to a net-zero emission status by 2050.
  • CBD Oil

    Context- Earlier this week, late actor Irrfan Khan’s wife Sutapa Sikdar made an appeal to legalise CBD oil in India for its potential to treat cancer. Her appeal followed the criticism of actor Rhea Chakrabaorty after it was reported that she had administered CBD oil, used as a pain reliever for some, to Sushant Singh Rajput when he was alive.

    About CBD oil ?

    • CBD oil is an extract from the cannabis plant. The two main active substances in it are cannabidiol or CBD and delta-9 tetrahydrocannabinol, or THC.
    • The high that is caused by the consumption of cannabis is due to THC. CBD, however, does not cause a “high” or any form of intoxication.
    • CBD oil is made by extracting CBD from the cannabis plant, then diluting it with a carrier oil like coconut or hemp seed oil.
    • Cannabidiol can reduce pain and anxiety. It also reduces psychotic symptoms associated with conditions such as schizophrenia as well as epilepsy.
    • There is not enough robust scientific evidence to prove that CBD oil can safely and effectively treat cancer.
    • CBD oil manufactured under a license issued by the Drugs and Cosmetics Act, 1940 can be legally used. However, the use of cannabis as a medicine is not much prevalent in India.
  • Finishing the unfinished task of reform in land and labour markets

    The article discusses the issues faced by the various sectors of the economy and how the reform measures introduced by the government could help these sectors.

    Exploitation of farmers and consumers

    • The Indian farmer has bee treated as captive sources of producing cheap food grain while living at subsistence levels.
    • There was no freedom to choose the point of sale for his produce, he could not decide the price of his product and had no say in selecting the buyer.
    • The end consumer was equally short-changed with frequent cycles of persistent high inflation.
    • The only beneficiaries of this perverse system were middlemen who thrived under political protection.

    How reforms will help farmers

    • The stifling nature of the Essential Commodities Act and the APMC Act have both been removed.
    • Contract farming is now nationally enabled, allowing private investment to come in.
    • Private investment will bring in technology, modern equipment, better seeds, know-how for in-between-season crops, improved yields, better logistics and freer access to national and international markets.
    • The Indian farm sector will now finally begin to see the benefits of economies of scale.

    Need for the reforms in various sectors

    • There were 44 different labour laws with more than 1,200 sections and clauses that demanded compliance if one even thought of becoming an entrepreneur.
    • Different inspectors and departments administered these laws and this stunted many entrepreneurs.
    • The Companies Act of 2013 completely paralysed risk-taking and quick decision-making among the private wealth creators.
    • There were a large number of organisations that called themselves “banks” but were completely outside the ambit of RBI regulation.
    •  The politicians who controlled these banks were the primary obstacles in introducing any reforms in these sectors.
    • Indian mainstream banks, contrary to international norms, had a peculiar practice of “grossing” their bilateral liabilities rather than “netting”.
    • As per estimates, this locked anywhere between Rs 50,000 to Rs 70,000 crore funds.

    Reforms made by the government

    • In place of the 44 central labour laws,  the Parliament has now put in place four labour codes that are much simpler — the Code on Wages, the Industrial Relations Code, the Social Security Code and the Occupational Safety, Health and Working Conditions Code.
    • The bilateral banking netting law has been passed and a large corpus of unproductive capital has been freed to be deployed in the market.
    • Cooperative banks will now be regulated by the RBI and its customers will have the same protections as those of other regular banks.
    • The problematic sections of the Companies Act 2013 have been done away with and the fear of criminal prosecution gone.

    Conclusion

    The reforms in various sectors of the economy are bound to help the faster recovery of the economy as well as help the farmers realising their full potential.

  • What are defence offsets ?

    What are defence offsets ?

    • In simplest terms, the offset is an obligation by an international player to boost India’s domestic defence industry if India is buying defence equipment from it.
    • Since defence contracts are costly, the government wants part of that money either to benefit the Indian industry, or to allow the country to gain in terms of technology.
    • The Comptroller and Auditor General (CAG) defined offsets as a “mechanism generally established with the triple objectives of: (a) partially compensating for a significant outflow of a buyer country’s resources in a large purchase of foreign goods (b) facilitating induction of technology and (c) adding capacities and capabilities of domestic industry”.

    When was the policy introduced?

    • The policy was adopted on the recommendations of the Vijay Kelkar Committee in 2005.
    • The idea was that since India has been buying a lot of defence equipment from foreign countries, so that India can leverage its buying power by making them discharge offset obligations, which is the norm world over.
    • The Sixth Standing Committee on Defence (2005-06) had recommended in December 2005 in its report on Defence Procurement Policy and Procedure that modalities for implementation of offset contracts should be worked out.
    • The first offset contract was signed in 2007.

    How can a foreign vendor fulfil its offset obligations?

    • There are multiple routes. Until 2016, the vendor had to declare around the time of signing the contract the details about how it will go about it. In April 2016, the new policy amended it to allow it to provide it “either at the time of seeking offset credits or one year prior to discharge of offset obligations”.
    •  Investment in ‘kind’ in terms of transfer of technology (TOT) to Indian enterprises, through joint ventures or through the non-equity route for eligible products and services.
    •  Investment in ‘kind’ in Indian enterprises in terms of provision of equipment through the non-equity route for manufacture and/or maintenance of products and services.
    •  Provision of equipment and/or TOT to government institutions and establishments engaged in the manufacture and/or maintenance of eligible products, and provision of eligible services, including DRDO (as distinct from Indian enterprises).
    • Technology acquisition by DRDO in areas of high technology.

    Will no defence contracts have offset clauses now ?

    • Only government-to-government agreements (G2G), ab initio single vendor contracts or inter-governmental agreements (IGA) will not have offset clauses anymore. For example, the deal to buy 36 Rafale fighter jets, signed between the Indian and French governments in 2016, was an IGA.
    • IGA is an agreement between two countries, and could be an umbrella contract, under which you can go on signing individual contracts. G2G is transaction specific, or an acquisition specific agreement.

     

    Why was the clause removed?

    •  Vendors would “load” extra cost in the contract to balance the costs, and doing away with the offsets can bring down the costs in such contracts.

    Conclusion-  The CAG is not very hopeful of the obligations being met by 2024. It said the audit “found that the foreign vendors made various offset commitments to qualify for the main supply contract but later, were not earnest about fulfilling these commitments”.

  • Code on Wages 2019

    The article discusses the issues in the Code on Wages (yet to be notified) 2019 and how it fails to achieve what it seeks to achieve.

    Code on Wages 2019

    • The Code on Wages, 2019 seeks to consolidate and simplify four pieces of legislation into a single code. These 4 legislations are-
    • 1) Payment of Wages Act, 1936.
    • 2) Minimum Wages Act, 1948.
    • 3) Payment of Bonus Act, 1965.
    • 4) Equal Remuneration Act, 1976.
    • Its object and reasons stated that even the Second National Commission on Labour- 2002 suggested consolidating all labour laws into four codes.

    Issues with the consolidation

    • While the previous four pieces of legislation had a total of 119 sections, the new Code has 69 sections.
    • Any consolidation will impact the length of the sections.
    • Further, all requirements for enforcing the Act, have been relegated to the Rules.
    • As a result, the delegated pieces of legislation (Rules) will be bigger than the Code; this is no way to condense prior pieces of legislation.
    • All the four repealed pieces of legislation were enacted historically at different points in time and to deal with different situations.
    • The combining of asymmetrical laws into a single code is not an easy task and will only create its own set of new problems.
    • The central government will have the power to fix a “floor wage”.
    • Once it is fixed, State governments cannot fix any minimum wage less than the “floor wage”.
    •  The concept should be for a binding minimum wage and not have dual wage rates — a binding floor wage and a non-binding minimum wage.
    • Neither the Code nor the Rules (presently, draft Rules) prescribe the qualifications and experience required for appointment of competent authority.
    • Anew provision (Section 52) has been introduced where an officer will be notified with power to impose a penalty in the place of a judicial magistrate.
    • An essential judicial function is now sought to be vested with the executive in contravention of Article 50 of the Constitution.

    Issue of MGNREGA wages

    • There were cases as to whether the Minimum Wages Act would have an over-riding effect over the provisions of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005.
    • Several High Courts have placed the Minimum Wages Act to override MGNREGA.
    • That has been set to rest by excluding MGNREGA from the purview of the Code on Wages.
    • That has been set to rest by excluding MGNREGA from the purview of the Code on Wages.

    Conclusion

    The Code on Wages (yet to be notified) has neither succeeded in consolidation of laws nor will it achieve the expansion of the coverage of workers in all industries in the unorganised sector.

  • Lessons to learn from Vodafone ruling

    Context

    •  An Investor-State Dispute Settlement (ISDS) tribunal has ruled that India’s imposition of tax liability amounting to â‚č22,000 crore on Vodafone is in breach of India-Netherlands bilateral investment treaty obligations.

    Background of the case

    • This case arose after the Indian Parliament in 2012 amended the Income Tax Act.
    • As per the amendment, income deemed to be accruing to non-residents, directly or indirectly, through the transfer of a capital asset situated in India is taxable retrospectively with effect from April 1, 1962.
    • This amendment was carried out to override the Supreme Court ruling in favour of Vodafone.
    • This amendment dented India’s reputation as a country governed by the rule of law, and shook the faith of foreign investors.

    Key lessons from Vodafone case

    • 1) All the three organs of the Indian state — Parliament, executive, and the judiciary — need to internalise India’s BIT and other international law obligations.
    • These organs need to ensure that they exercise their public powers in a manner consistent with international law, or else their actions could prove costly to the nation.
    • 2) India should learn that being a country that values the rule of law is an important quality to win over the confidence of foreign investors and international goodwill.
    • 3) It is likely that the government might challenge the award at the seat of arbitration or resist the enforceability of this award in Indian courts alleging that it violates public policy.
    •  It would mean that India does not honour its international law obligation.
    • 4) This ruling might have an impact on the two other ISDS claims that India is involved in with Cairn Energy and Vedanta on the imposition of taxes retrospectively.
    • 5) It is quite possible that India might use this award to further harden its antagonistic stand against ISDS and BITs.
    • India unilaterally terminated almost all its BITs after foreign investors started suing India for breaching BITs.
    • But the fact is that this case and several others are a result of bad state regulation.
    • 6) This decision shows the significance of the ISDS regime to hold states accountable under international law when in case of undue expansion of state power.
    • The case is a reminder that the ISDS regime, notwithstanding its weaknesses, can play an important role in fostering international rule of law.

    Consider the question “What were the issues involved in the Vodafone tax case? What are the implication of Investor-State Dispute Settlement ruling for India?”

    Conclusion

    If government is serious about wooing foreign investment, India should immediately comply with the decision.

  • Cat Que Virus

    In a study published in the Indian Journal of Medical Research, scientists have noted the presence of antibodies against the Cat Que virus (CQV) in two human serum samples.

    Try this PYQ:

    Q.Which one of the following statements is not correct?

    (a) Hepatitis B virus is transmitted much like HIV.

    (b) Hepatitis B, unlike Hepatitis C, does not have a vaccine.

    (c) Globally, the number of people infected with Hepatitis B and C viruses is several times more than those infected with HIV.

    (d) Some of those infected with Hepatitis B and C viruses do not show the symptoms for many years.

    What is the Cat Que Virus?

    • For CQV, domestic pigs are considered to be the primary mammalian hosts.
    • Antibodies against the virus indicate that the virus has formed a “natural cycle” in the local area and has the ability to spread in pigs and other animal populations through mosquitoes.
    • CQV belongs to the Simbu serogroup and infects both humans and economically important livestock species.
    • It was first isolated in 2004 from mosquitoes during the surveillance of arbovirus activity in northern Vietnam.
    • In this study, researchers reported a CQV strain (SC0806), which was isolated from mosquito samples collected in China in 2006 and 2008.

    Impact on humans

    • Humans can get infected through mosquitoes as well.
    • In the study, scientists note that because of positivity in human serum samples and the replication capability of CQV in mosquitoes, there is only a “possible disease-causing potential” of CQV in the Indian scenario.
  • What are the ESG funds?

    ESG funds are witnessing a growing interest in the Indian mutual fund industry these days.

    Try this PYQ:

    Sustainable development is described as the development that meets the needs of the present without compromising the ability of future generations to meet their own needs. In this perspective, inherently the concept of sustainable development is intertwined with which of the following concepts?

    (a) Social justice and empowerment

    (b) Inclusive Growth

    (c) Globalization

    (d) Carrying capacity

    What are the ESG funds?

    • ESG means using Environmental, Social and Governance factors to evaluate companies and countries on how far advanced they are with sustainability.
    • ESG investing is used synonymously with sustainable investing or socially responsible investing.
    • While selecting a stock for investment, the ESG fund shortlists companies that score high on the environment, social responsibility and corporate governance, and then looks into financial factors.
    • So, the scheme focuses on companies with environment-friendly practices, ethical business practices and an employee-friendly record.
    • They imbibe the environment, social responsibility and corporate governance in their investing process.

    Why so much focus on ESG now?

    • Modern investors are re-evaluating traditional approaches and look at the impact their investment has on the planet.
    • As a result of this paradigm change, asset managers have started incorporating ESG factors into investment practices.
    • Companies with good ESG scores tick most of the checkboxes for investing, tend to mitigate environmental and social risks and tends to have stronger cash flows, lower borrowing costs and durable returns.