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  • Animal Husbandry, Dairy & Fisheries Sector – Pashudhan Sanjivani, E- Pashudhan Haat, etc

    Poultry Farm Establishment Rules

    Small and marginal poultry farmers in India will now have to take measures similar to their bigger counterparts to prevent environmental pollution, according to new guidelines issued recently by Central Pollution Control Board (CPCB).

    What are the new guidelines?

    (A) Establishment

    • Consent to Operate: The new guidelines state that for establishing and operating a medium-sized poultry farm of 25,000-100,000 birds, a farmer will have to obtain a certificate of Consent. Permission will be valid for 15 years.
    • Designated Authority: This will have to be taken from the State Pollution Control Board or Committee under the Water Act, 1974, and the Air Act, 1981. The Animal Husbandry Department will be responsible for implementing the guidelines at the state and district level.
    • Location: A farm should be set up 500 metres away from a residential area, 100 metres from rivers, lakes, canals, and drinking water sources, 100 metres from national highways, and 10-15 metres from village footpaths and rural roads.

    (B) Operational directives

    • Ventilated farms: The guidelines state that the poultry farm should have a ventilated room to reduce the gaseous pollution from the birds.
    • Wastewater management: Also, care should be taken so that poultry feces do not mix with running water or any other pesticide.
    • Manure generation: Farmers of small- and medium-sized poultry farms will have to arrange for manure. After use, the water from a poultry farm must be collected in a tank. The guidelines suggest using it in horticulture.
    • Disposal of deads: Emphasis has also been given to the daily removal of birds that die, through burial, without harming the environment. Burial should be done three metres above the groundwater level.

    (C) Large/ Small Farmer

    The new guidelines have defined who is a ‘large’ or ‘small’ poultry farmer in India.

    • Those who have 5,000-25,000 birds are small farmers.
    • Those who have more than 25,000 and less than 100,000 birds are medium farmers.
    • Those who have more than 100,000 birds are large farmers.

    Why need such regulation?

    • Poultry, hatchery and piggery were considered ‘green’ by the Central Pollution Control Board (CPCB) in its guidelines of 2015.
    • This meant they were exempt from the air, water, and environmental protection laws.
    • Gaseous emissions and waste are major problems in poultry farming.
    • The feces of poultry birds emit gaseous ammonia, hydrogen sulfide, and methane, all of which produce odors.

    Poultry sector of India

    • According to the 20th Livestock Census 2020, there are 851.8 million poultry birds in India.
    • About 30 percent (250 million) of this is ‘backyard poultry’ or small and marginal farmers.
    • According to the 19th Livestock Census, the number of such farmers is about 30 million.
    • Chickens, turkeys, ducks, geese, etc, are reared in poultry farms for meat and eggs. Chickens that are reared for eggs are called ‘laying hens’ or ‘layers’. Those reared for meat are called ‘broilers’.

    According to the 20th Livestock Census, Tamil Nadu (120 million), Andhra Pradesh (107 million), Telangana (79 million), West Bengal (77 million), Maharashtra (74 million), Karnataka (59 million crores), Assam (46 million) and Kerala (29 million) have the highest poultry populations.

    Try answering this PYQ:

    Consider the following statements:

    1. Agricultural soils release nitrogen oxides into environment.
    2. Cattle release ammonia into environment.
    3. Poultry industry releases reactive nitrogen compounds into environment.

    Which of the statements given above is/are correct?

    (a) 1 and 3 only

    (b) 2 and 3 only

    (c) 2 only

    (d) 1, 2 and 3

     

    Post your answers here.

     

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  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    Why is there a push for Asset Monetization?

    Finance Minister has recently announced the framework for the National Monetization Pipeline (NMP) and its process is under discussion.

    What is Asset Monetization?

    • Asset Monetization involves the creation of new sources of revenue by unlocking of the value of hitherto unutilized or underutilized public assets.
    • Internationally, it is recognized that public assets are a significant resource for all economies.
    • Many public sector assets are sub-optimally utilized and could be appropriately monetized to create greater financial leverage and value for the companies and of the equity that the government has invested in them.
    • This helps in the accurate estimation of public assets which would help in the better financial management of government/public resources over time.

    What is the National Monetization Pipeline?

    • The NMP names a list of public assets that will be leased to private investors.
    • Only brown-field assets, which are assets that are already operational, are planned to be leased out under the NMP.
    • So, to give an example, an airport that is already operational may be leased out to an investor.
    • Assets that are yet to be developed, such as an undeveloped piece of land, for example, may not be leased out.
    • Importantly, there won’t be any transfer of ownership from the government to the private sector when assets are leased out.
    • The government only plans to cede control over its assets for a certain period of time, after which the assets must be returned to the government unless the lease is extended.

    Will NMP help the economy?

    • Better control and utilization: Economists generally believe that scarce assets are better managed and allocated by the private sector than by the government. So to the extent that the NMP frees assets from government control, it can help the economy.
    • Freeing Capital: The government believes that leasing out public assets to private investors will help free capital that is stuck in these assets.
    • Infra generation: The government can use this money, in turn, to build fresh infrastructure under the National Infrastructure Pipeline (NIP).
    • Economic boost: In fact, the proceeds from the NMP are expected to account for about 14% of the total outlay for infrastructure under the NIP. The government believes all this spending will boost economic activity.
    • A perfect model: Analysts also believe that the government has now through the NMP found the right model for infrastructure development.
    • Source of finance: The government, they say, is best suited to tackle the ground-level challenges in building infrastructure, while the private sector can operate and offer indirect finance to these projects through the NMP.

    For example, say the government has invested thousands of crores in a road project. It may take the government decades to recover its investment through the annual toll revenues.  Instead, the government can recover a good chunk of its investment by leasing out the right to collect toll for the next 30 years to a private investor.

    What are the risks?

    • Political lobbying: The allocation of assets owned by governments to private investors is often subject to political influence, which can lead to corruption. In fact, many in the Opposition allege that the NMP will favour a few business corporations that are close to the government.
    • Burden of opportunity cost: The expected boost to economic activity due to higher government spending may also need to be weighed against the opportunity costs. For one, the money that the government collects by leasing out assets comes from the pockets of the private sector. So higher government spending will come at the cost of lower private spending.
    • Legal uncertainties: The NMP also does not address the various structural problems such as legal uncertainty and the absence of a deep bond market that hold back private investment in infrastructure.
    • Sheer Privatization: There are also concerns that the leasing of airports, railways, roads and other public utilities to private investors could lead to higher prices for consumers. If the government merely cedes control of public utilities to private companies without taking steps to foster greater competition, it can indeed lead to poor outcomes for consumers.
    • Policy compulsion: The government’s past disinvestment projects such as the sale of Air India did not catch the fancy of investors owing to the stringent conditions set by the government. In the case of Air India’s sale, the buyers were supposed to possess a certain minimum net worth and stay invested in the airline for at least three years.

    What lies ahead?

    • The success of the NMP will depend on the demand for brown-field government assets among private investors.
    • Many analysts also believed that the government was expecting buyers to pay too much for a debt-ridden Air India.
    • The pricing of assets and the terms of sale will thus determine the level of interest that private investors show for assets leased under the NMP.
    • In the past, doubts have been raised about the allocation of airports and other assets to certain private business groups (say Adani Group).
    • So the process that the government adopts this time to allocate assets may come under scrutiny. There is likely to be a demand for an open, competitive auction of assets.

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  • Modern Indian History-Events and Personalities

    PM inaugurates Jallianwala Bagh Memorial

    Prime Minister has virtually inaugurated the renovated Jallianwala Bagh complex in Amritsar.

    What led to Jallianwala Bagh Massacre?

    Protesting the contentious Rowlatt Act

    • The act officially known as the Anarchical and Revolutionary Crimes Act, 1919 was passed in 1919 by the Imperial Legislative Council.
    • It had authorized the British government to arrest anybody suspected of terrorist activities.
    • It also authorized the government to detain such people arrested for up to 2 years without trial.
    • It empowered the police to search a place without a warrant. It also placed severe restrictions on the freedom of the press.
    • The primary intention of colonial govt. was to repress the growing nationalist movement in the country.
    • The British were also afraid of a Ghadarite revolution in Punjab and the rest of the country.

    The day

    • The massacre took place on 13 April 1919 when troops of the British Indian Army under the command of Col. Reginald Dyer fired rifles into a crowd of Indians.
    • The civilians had assembled for a peaceful protest to condemn the arrest and deportation of two national leaders, Satya Pal and Saifuddin Kitchlew.
    • Dyer without warning ordered his troops to fire at the unarmed crowd which included children as well.
    • The indiscriminate firing went on for about 10 minutes which resulted in the deaths of at least 1000 people and injured more than 1500 people.

    Aftermath

    • In protest against the massacre, Rabindranath Tagore gave up his knighthood.
    • Gandhiji relinquished his title ‘Kaiser-e-hind’ bestowed on him by the British for his services during the Boer War in South Africa.
    • Michael O’Dwyer, the then Lieutenant-Governor of Punjab, who had approved the actions of Dyer, was assassinated by Udham Singh in London in 1940 as revenge against the massacre.
    • The heroic treatment of Dyer’s heinous act again set a benchmark of colonial arrogance.

    Hunter Commission for inquiry

    • In October 1919 the Secretary of State for India, Edwin Montagu, ordered the formation of a committee of inquiry into the events in Punjab.
    • Referred to as the Disorders Inquiry Committee, it was later more widely known as the Hunter Commission (Not to be confused with Hunter Education Commission).
    • Still, there are long-standing demands in India that Britain should apologize for the massacre.
  • Tuberculosis Elimination Strategy

    BCG vaccine: 100 years and counting

    The first use of BCG (Bacillus Calmette-Guerin), the vaccine against tuberculosis (TB) in humans have been completed for 100 years.

    What is TB?

    • TB is a very ancient disease and has been documented to have existed in Egypt as early as 3000 BC.
    • It is caused by a bacterium called Mycobacterium tuberculosis, belonging to the Mycobacteriaceae family consisting of about 200 members.
    • Some of these cause diseases like TB and leprosy in humans and others infect a wide range of animals. Mycobacteria are also widely dispersed in the environment.
    • In humans, TB most commonly affects the lungs (pulmonary TB), but it can also affect other organs (extra-pulmonary TB).

    Yet not eliminated

    • Other historically dreaded diseases like smallpox, leprosy, plague, and cholera have been either eradicated or controlled to a large extent due to advances in science and technology.
    • However, TB continues to be a major public health problem in the world.
    • According to the WHO’s Global TB Report, 10 million people developed TB in 2019 with 1.4 million deaths. India accounts for 27% of these cases.

    BCG Vaccine for TB

    • BCG was developed by two Frenchmen, Albert Calmette and Camille Guerin, by modifying a strain of Mycobacterium Bovis (that causes TB in cattle) till it lost its capacity to cause disease while retaining its property to stimulate the immune system.
    • It was first used in humans in 1921.
    • Currently, BCG is the only licensed vaccine available for the prevention of TB.
    • It is the world’s most widely used vaccine with about 120 million doses every year and has an excellent safety record.

    BCG in India

    • In India, BCG was first introduced on a limited scale in 1948 and became a part of the National TB Control Programme in 1962.
    • India is committed to eliminating TB as a public health problem by 2025.

    Effectiveness of BCG

    • One intriguing fact about BCG is that it works well in some geographic locations and not so well in others.
    • Generally, the farther a country is from the equator, the higher is the efficacy.
    • In children, BCG provides strong protection against severe forms of TB.
    • This protective effect appears to wane with age and is far more variable in adolescents and adults, ranging from 0–80%.
    • In addition to its primary use as a vaccine against TB, BCG also protects against respiratory and bacterial infections of newborns and other mycobacterial diseases like leprosy and Buruli’s ulcer.
    • It is also used as an immunotherapy agent in cancer of the urinary bladder and malignant melanoma.

    Try answering this PYQ:

    What is the importance of using pneumococcal conjugate vaccines in India? (CSP 2020)

    1. These vaccines are effective against pneumonia as well as meningitis and sepsis.
    2. Dependence on antibiotics that are not effective against drug-resistant bacteria can be reduced.
    3. These vaccines have no side effects and cause no allergic reactions

    Select the correct answer using the given code below:

    (a) 1 only

    (b) 1 and 2 only

    (c) 3 only

    (d) 1, 2 and 3

     

    Post your answers here.

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  • Global Geological And Climatic Events

    Hurricane Ida makes landfall in US

    Hurricane Ida has made landfall in Louisiana, US as an extremely dangerous Category 4 storm.

    What is a Hurricane?

    • A hurricane is a tropical cyclone that occurs in the Atlantic Ocean and the northeastern Pacific Ocean.
    • And a typhoon occurs in the northwestern Pacific Ocean; in the south Pacific or the Indian Ocean, comparable storms are referred to simply as “tropical cyclones” or “severe cyclonic storms”.

    What are Tropical Cyclones?

    A Tropical cyclone is an intense circular storm that originates over warm tropical oceans and is characterized by low atmospheric pressure, high winds, and heavy rain.

    • Cyclones are formed over slightly warm ocean waters. The temperature of the top layer of the sea, up to a depth of about 60 meters, need to be at least 28°C to support the formation of a cyclone.
    • This explains why the April-May and October-December periods are conducive for cyclones.
    • Then, the low level of air above the waters needs to have an ‘anticlockwise’ rotation (in the northern hemisphere; clockwise in the southern hemisphere).
    • During these periods, there is an ITCZ in the Bay of Bengal whose southern boundary experiences winds from west to east, while the northern boundary has winds flowing east to west.
    • Once formed, cyclones in this area usually move northwest. As it travels over the sea, the cyclone gathers more moist air from the warm sea which adds to its heft.

    Try this question from CSP 2020:

    Q.Consider the following statements:

    1. Jet Streams occur in the Northern Hemisphere only.
    2. Only some cyclones develop an eye.
    3. The temperature inside the eye of a cyclone is nearly 10 degree Celsius lesser than that of the surroundings.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 and 3 only

    (c) 2 only

    (d) 1 and 3 only

     

    Post your answers here.

    Destruction caused

    • Strong Winds: Cyclones are known to cause severe damage to infrastructure through high-speed winds.
    • Torrential rains and inland flooding: Torrential rainfall (more than 30 cm/hour) associated with cyclones is another major cause of damages. Unabated rain gives rise to unprecedented floods.
    • Storm Surge: A Storm surge can be defined as an abnormal rise of sea level near the coast caused by a severe tropical cyclone.

    Some (unexpected) benefits

    Although Tropical cyclones are known for the destruction they cause, when they strike they also bestow certain benefits to the climatic conditions of that area such as

    • Relieve drought conditions
    • Carry heat and energy away from the tropics and transport it towards temperate latitudes
    • Maintain a relatively stable and warm temperature worldwide

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    Also read:

    [Burning Issue] Tropical Cyclones and India

  • Foreign Policy Watch: India-Afghanistan

    Soft power, India’s strength in Afghanistan

    Context

    Over the past few weeks, there has been much talk about India’s diplomatic stakes being threatened by the changing political scenario in Afghanistan.

    India’s role in Afghanistan’s development

    • India is currently the fifth-largest donor in Afghanistan.
    • India’s total development assistance over the years has been worth over $3 billion.
    • Soft and hard measures: India’s development cooperation with Afghanistan has encompassed both soft and hard measures.
    • Soft measures have helped build goodwill and greater people-to-people contact and has involved measures focusing on health, education, capacity development and food security, among others.
    • Many projects have been community-driven, thus helping engage a large section of people in development efforts.
    • Hard infrastructure examples include the parliament building which was inaugurated in 2015, financing the Delaram-Zaranj Highway as well as the 42 MW Salma Dam in Herat province.
    • India had also engaged in triangular cooperation under the US umbrella, cooperating with USAID on various programmes.
    • This includes Afghan Women’s Empowerment Programme, a collaboration between USAID and the Self-Employed Women’s Association (SEWA) for providing vocational education for Afghan women.

    How India’s approach differed from other donors?

    • Demand-driven approach: India follows a demand-driven approach, which implies that the sectors for investment are chosen by the recipient government.
    • Not condition based: although its aid is extended as a soft means to gain strategic leverage, it comes without political conditions.
    • In PPP terms, the value of the Indian rupee is often underestimated, meaning that the Indian rupee would be able to buy substantially more goods and services at adjusted exchange rates.
    • For example, a study by the Stimson Centre found out that even though Indian aid in 2015-16 totalled $1.36 billion, in PPP terms it could be pegged at over $5 billion.

    Way forward

    • Adapt programs to new reality: At the Afghanistan Conference in Geneva in 2020, India announced several development projects.
    • New political developments in Afghanistan are unlikely to lead to a complete disconnect with India and its established socio-economic role.
    • However, India may need to adapt its programmes to new realities.
    • Diversify portfolio: There is still an infrastructure deficit in Afghanistan and a need for rebuilding and reconstruction.
    • As far as development cooperation is concerned, however, India needs to further diversify its portfolios.
    • Resilient Afghanistan to climate change: India can do much to build a more resilient Afghanistan with respect to climate change and disaster risk reduction with it spearheading global campaigns like CDRI.

    Conclusion

    India needs to establish itself as a neutral entity that is keen on the development of the region but ready to work with all parties concerned.

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  • Land Reforms

    Agrarian reforms should go beyond meeting demands of the agitating farmers

    Context

    The farmers’ agitation in India has attracted worldwide attention and support.

    Story of land reforms in India

    • Being a state subject, various states implemented reforms with varying degrees of effectiveness and equity.
    • Objectives: The objectives were the same: Abolition of feudal landlordism, conferment of ownership on tenants, fixing land ceilings, distribution of surplus land, increasing agricultural productivity and production, etc.
    • However, owing to manipulations in land records, much surplus land was not available for distribution among the landless tillers.
    • Less than one per cent of the total land in the country was declared as surplus.
    • The relevant criteria for land entitlement should have been employment and main source of income.

    Change in social structure after land reforms

    • The ex-tenants, after getting land made use of several programmes —Green Revolution technology, bank nationalisation and priority sector lending, urbanisation and expanding urban markets.
    • They cornered a disproportionate share of various subsidies.
    • The tenant-turned-capitalist farmers formed political parties, which produced strong state-level leaders, who controlled state-level planning, fiscal policies and politics.
    • In place of a strong Centre and weak states, came a weak Centre and strong states.
    • Rich farmers have formed strong power blocs, with unquestioned clout and bargaining power, not only in north-western India but also in states like Maharashtra.

    Need for agrarian reforms

    • Farmers are seeking legal safeguards against market fluctuations, especially against any downward pressure on agricultural prices.
    • While they welcome every rise in prices, they demand legal protection against price falls, a legitimate stance.
    • Even as agricultural prosperity must be promoted,it should not be just shared between farmers (especially rich ones) and urban consumers, but by all.
    • Farm workers, in particular, must benefit from it.

    Reforms for farmworkers

    • Agricultural land should be pooled and equally distributed among farm households.
    • Non-farm households should not be permitted to hold farmland.
    • Land reforms should be a central subject; while agriculture can remain a state subject.
    • Such a programme will empower and enrich marginalised and excluded individuals and social groups.
    • It should be the kernel of a justiciable universal property right that must form an integral/inalienable part of Article 21 (Right to Life) of the Constitution.

    Conclusion

    The right to life is hollow without a right to livelihood. Through an effective land reforms programme, let’s build a prosperous India based on equity and justice.

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  • Disinvestment in India

    Asset monetisation — execution is the key

    Context

    The government has announced an ambitious programme of asset monetisation. It hopes to earn ₹6 trillion in revenues over a four-year period.

    About Asset monetisation

    • Unlike in privatisation, no sale of government assets is involved.
    • The government parts with its assets — such as roads, coal mines — for a specified period of time in exchange for a lump sum payment.
    • Asset monetisation will happen mainly in three sectors: roads, railways and power.
    • Other assets to be monetised include: airports, ports, telecom, stadiums and power transmission.
    • Two important statements have been made about the asset monetisation programme.
    • The focus will be on under-utilised assets.
    • Monetisation will happen through public-private partnerships (PPP) and Investment Trusts.

    Challenges

    1) Investors would prefer property utilised assets over underutilised assets

    • Suppose an asset is not being used adequately because it has not been properly developed or marketed well enough.
    • A private party may judge that it can put the assets to better use.
    • It will pay the government a price equal to the present value of cash flows at the current level of utilisation.
    • This is a win-win situation for the government and the private player.
    • The government gets a ‘fair’ value for its assets.
    • The private player gets its return on investment.
    • Increase in efficiency: The economy benefits from an increase in efficiency.
    • Monetising under-utilised assets thus has much to commend it.
    • However, in case of an asset that is being properly utilised, the private player has little incentive to invest and improve efficiency.
    • It simply needs to operate the assets as they are.
    • The private player may value the cash flows assuming a normal rate of growth.
    •  The cost of capital for a private player is higher than for a public authority.
    • The higher cost of capital for the private player could offset the benefit of any reduction in operating costs.
    • The government earns badly needed revenues but these could be less than what it might earn if it continued to operate the assets itself.
    • There is no improvement in efficiency.
    • The benefits to the economy are likely to be greater where under-utilised assets are monetised.
    • However, private players will prefer well-utilised assets to assets that are under-utilised.
    • That is because, in the former, cash flows and returns are more certain.

    2) Valuation challenges

    • It is very difficult to get the valuation right over a long-term horizon, say, 30 years.
    •  For a road or highway, growth in traffic would also depend on factors other than the growth of the economy.
    • . If the rate of growth of traffic turns out to be higher than assessed by the government in valuing the asset, the private operator will reap windfall gains.
    • Alternatively, if the winning bidder pays what turns out to be a steep price for the asset, it will raise the toll price steeply.
    • The consumer ends up bearing the cost.
    • It could be argued that a competitive auction process will address these issues and fetch the government the right price while yielding efficiency gains.
    • But that assumes, among other things, that there will be a large number of bidders for the many assets that will be monetised.

    3) Life of the returned asset may not be long

    • There is no incentive for the private player to invest in the asset towards the end of the tenure of monetisation.
    • The life of the asset, when it is returned to the government, may not be long.
    • In that event, asset monetisation virtually amounts to sale.
    • Monetisation through the PPP route is thus fraught with problems.

    Way forward: InvIT route

    • Infrastructure Investment Trusts (InvIT) are mutual fund-like vehicles in which investors can subscribe to units that give dividends.
    •  Monetisable assets will be transferred to InvITs.
    • The sponsor of the Trust is required to hold a minimum prescribed proportion of the total units issued.
    • InvITs offer a portfolio of assets, so investors get the benefit of diversification.
    • In the InvIT route to monetisation, the public authority continues to own the rights to a significant portion of the cash flows and to operate the assets.
    • So, the issues that arise with transfer of assets to a private party — such as incorrect valuation or an increase in price to the consumer — are less of a problem.

    Key takeaways

    • Low cost of capital for public authority: In general, due to the low cost of capital for public authority, the economy is best served when public authorities develop infrastructure and monetise these.
    • InvIT route: Monetisation through InvITs is likely to prove less of a problem than the PPP route.
    • Monetise under utilised assets: We are better off monetising under-utilised assets than assets that are well utilised.
    • Monitoring authority should be set up: To ensure proper execution, there is a case for independent monitoring of the process.
    • The government may set up an Asset Monetisation Monitoring Authority staffed by competent professionals.

    Consider the question “How asset monetisation is different from privatisation? What are the challenges in asset monetisation? Suggest the ways forward.”

    Conclusion

    Government must pay attention to the challenges in asset monetisation and use it in the proper way to increase the efficiency in the economy.

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  • Right To Privacy

    Delhi HC observations on Right to be Forgotten

    The Delhi High Court upheld the view that the “Right to Privacy” includes the “Right to be Forgotten” and the “Right to be Left Alone”.

    Right to be Forgotten in India

    • The Right to be Forgotten falls under the purview of an individual’s right to privacy, which is governed by the Personal Data Protection Bill that is yet to be passed by Parliament.
    • In 2017, the Right to Privacy was declared a fundamental right by the Supreme Court in its landmark verdict.
    • The court said at the time that “the right to privacy is protected as an intrinsic part of the right to life and personal liberty under Article 21 and as a part of the freedoms guaranteed by Part III of the Constitution”.

    What was the recent case?

    • The TV celebrity had moved Delhi High Court with the plea that orders be issued to Google and relevant entities to facilitate the removal of posts, videos, articles and any information related to incidents that he was involved.
    • His plea cited that his presence on the internet is a source of “utmost psychological pain” to him.

    Legal issues

    • India does not have a law yet on right to be forgotten.
    • In the meantime, the Information Technology Rules, 2011 — which is the current regime governing digital data — does not have any provisions relating to the right to be forgotten.
    • The Personal Data Protection (PDP) Bill was tabled in Parliament in 2019 and is being examined by a Joint Parliamentary Committee (JPC).

    Key features of PDP Bill

    • Personal Data: Section 20 of the PDP Bill says that a ‘data principal’ — or the person who generates the data or to whom the information pertains — can rightfully ask a ‘data fiduciary’, which is any entity that stores or processes such data, to “restrict or prevent the continuing disclosure of his personal data” in specific circumstances.
    • Purpose of data: To seek the erasure of data, it is necessary to establish that it “has served the purpose for which it was collected or is no longer necessary for the purpose; was made with the consent of the data principal.
    • Right to be forgotten: The Bill says that the right to be forgotten can be enforced only on an order of an adjudicating officer following an application filed by the data principal.
    • Contravention with Free Speech: However, the decision on whether the right to be forgotten can be granted with respect to any data will depend on whether it contravenes “the right to freedom of speech and expression and the right to information of any other citizen”.

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  • Corporate Social Responsibility: Issues & Development

    Govt’s clarifications on CSR Expenditure

    The Ministry of Corporate Affairs has clarified that companies have to ensure that funds transferred to implementing agencies are actually utilized for them to be counted towards mandatory CSR expenditure.

    What is Corporate Social Responsibility (CSR)?

    • CSR is a type of business self-regulation that aims to contribute to the societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented practices.
    • It rests on the ideology of “give and take” i.e. to take scarce resources from the environment for running a business, and in turn to contribute towards economic, social, and environmental development.

    CSR in India

    • India is the first country in the world to make corporate social responsibility (CSR) mandatory, following an amendment to the Companies Act, 2013 in April 2014.
    • Businesses can invest their profits in areas such as education, poverty, gender equality, and hunger as part of any CSR compliance.

    All companies with a net worth of Rs 500 crore or more, a turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more, are required to spend 2 per cent of their average profits of the previous three years on CSR activities every year.

    What is the recent clarification?

    • The MCA has clarified that excess Corporate Social Responsibility (CSR) expenditure prior to FY21 cannot be set off against future CSR expenditure requirements.
    • Corporate donations to government schemes cannot be counted as CSR.
    • The ministry has also clarified that companies have to ensure that funds transferred to implementing agencies are actually utilized for them to be counted towards mandatory CSR expenditure.

    Impact of the move

    • This clarification may impact donations to state government schemes which are often done for the sake of managing relationships with the government.

    Earlier changes

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