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  • Parliament – Sessions, Procedures, Motions, Committees etc

    Explained: Election of Deputy Speaker

    | Polity | Mains Paper 2: Parliament & State Legislatures

    There is an ongoing row in Uttar Pradesh Assembly over the election of Dy Speaker, the post which was lying vacant for two years.

    Read each and every bit of this newscard. It can source you many MCQs.

    Constitutional mandate for Deputy Speaker

    • Article 93 talks about the election of Speaker and Deputy Speaker for Lok Sabha and the case for their vacancies.
    • Article 178 contains the corresponding position for Speaker and Deputy Speaker of the Legislative Assembly of a state.

    Is it mandatory under the Constitution to have a Deputy Speaker?

    • Constitutional experts point out that both Articles 93 and 178 use the words “shall” and “as soon as may be”.
    • This indicates that not only is the election of Speaker and Deputy Speaker mandatory, it must be held at the earliest.
    • All that the Constitution says is the election must be held as soon as possible.

    Time-frame and rules for their Election

    • Generally speaking, the practice in both Lok Sabha and the state Legislative Assemblies has been to elect the Speaker during the first session of the new House.
    • This usually falls on the third day after oath-taking and affirmations take place over the first two days.
    • The election of the Deputy Speaker usually takes place in the second session, even though there is no bar on having this election too in the first session.
    • However, the election of Deputy Speaker is generally not delayed beyond the second session without genuine and unavoidable constraints.

    Rules for the elections

    • In Lok Sabha, the election of Deputy Speaker is governed by the Rules of Procedure and Conduct of Business in Lok Sabha.
    • According to the Rule, the election “shall be held on such date as the Speaker may fix”, and the Deputy Speaker is elected once a motion proposing his name is carried.
    • There are similar provisions in the State Legislative Assembly Rules.

    Their tenure

    • Once elected, the Deputy Speaker usually continues in office until the dissolution of the House.
    • Under Article 94 (Article 179 for state legislatures), the Speaker or Dy Speaker “shall vacate his office if (S)he ceases to be a member of the House”.
    • They may also resign (to each other), or “may be removed by a resolution of the House of the People passed by a majority of all the then members of the House”.

    Do the powers of the Speaker extend to the Deputy Speaker as well?

    • Article 95(1) says: While the office of Speaker is vacant, the duties of the office shall be performed by the Deputy Speaker.
    • After the first Speaker, G V Mavalankar died, M Ananth Ayyangar officiated as Acting Speaker for the remaining tenure of the House and was then elected Speaker of the second Lok Sabha.
    • There is another such incident.
    • In general, the Deputy Speaker has the same powers as the Speaker when presiding over a sitting of the House.
    • All references to the Speaker in the Rules are deemed to be references to the Deputy Speaker when he presides.
    • It has been repeatedly held that no appeal lies to the Speaker against a ruling given by the Deputy Speaker or any person presiding over a sitting of the House in the absence of the Speaker.

    Note: UPSC has now gone person-specific in these matters. Kindly refer this PYQ:

    Consider the following statements:

    1. In India, there is no law restricting the candidates from contesting in one Lok Sabha election from three constituencies.
    2. In 1991 Lok Sabha Election, Shri Devi Lal contested from three Lok Sabha constituencies.
    3. As per the existing rules, if a candidate contests in one Lok Sabha election from many constituencies, his/her party should bear the cost of bye-elections to the constituencies vacated by him/her in the event of him/her winning in all the constituencies.

    Which of the statements given above is/are correct? (CSP 2021)

    (a) 1 only

    (b) 2 only

    (c) 1 and 3

    (d) 2 and 3

     

    Post your answers here.

     

    Does being Deputy Speaker protect an MP or MLA from the law of disqualification?

    Ans. No- with one specific exemption.

    • The Tenth Schedule says that a person who has been elected Speaker/ Deputy Speaker shall NOT be disqualified if he voluntarily gives up the membership of the political party to which he belonged.
    • This exemption applies to the Rajya Sabha Deputy Chairman, Chairman/ Deputy Chairman of a state Legislative Council, and Speaker/ Deputy Speaker of a state Legislative Assembly as well.

    Can courts intervene in cases of a delay in electing the Deputy Speaker?

    • In general, the courts do not intervene in the procedural conduct of Parliament.
    • Article 122(1) says: The validity of any proceedings in Parliament shall not be called in question on the ground of any alleged irregularity of procedure.
    • A petition before the Delhi High Court has argued that the delay in the election of the Lok Sabha Deputy Speaker violates Article 93 of the Constitution.
    • There is no precedent of a court forcing the legislature to elect the Deputy Speaker.
    • However, the courts do have jurisdiction to at least enquire why there has been no election to the post of Deputy Speaker since the Constitution does envisage an election “as soon as maybe”.

     

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  • Defence Sector – DPP, Missions, Schemes, Security Forces, etc.

    Extending BSF’s powers won’t resolve policing problems, security threats

    op-ed snap | Security Issues | Mains Paper 3: Various Security Forces, Agencies & Their Mandates

    Context

    The Union home ministry’s order to extend the jurisdiction of the Border Security Forces (BSF) has caused furore.

    Justification for the order

    • Increased threats: The Taliban’s takeover in Afghanistan has revived serious threats of cross-border infiltration from Pakistan, while China, our other tense neighbour, has been increasingly aggressive over the past year.
    • Change in the jurisdiction: The BSF’s powers have not altered, only its jurisdiction has changed from 15 to 50 kilometres and that is for the purposes of uniformity.

    Issues raised by the order

    • Lack of clarity: That India is facing heightened security threats is undeniable.
    • What is unclear is how the BSF’s extended jurisdiction helps counter these threats.
    • The recent drug seizures in Gujarat’s Adani port were successfully conducted by the customs department and the Directorate of Revenue Intelligence — not by the BSF, despite their jurisdiction depth of 80 kilometres in the state.
    • No need for uniformity: In the security context, arguments about uniformity are patently absurd.
    • There is no uniformity between coastal smuggling in Gujarat, cross-border infiltration in Jammu and Kashmir, smuggling and drone drops in Punjab.
    • Risk of civilian resentment: The order raises the risk of civilian resentment, even clashes, given that the BSF is not trained to operate in residential and/or market areas, it will also undermine the state police forces’ morale even further.
    • Overstretching BSF: The BSF is likely to be overstretched by its new tasks.
    • Once again, that could weaken rather than strengthen the BSF’s security capabilities.

    Tackling illegal migration

    • Curbing illegal migration requires coordinated action between India and its neighbours, first at the political and then at the security level.
    • The administration’s migration policies — the Citizenship Amendment Act, deporting Myanmar refugees even when they were locally welcomed, cancelling Afghan visas have made cooperation more difficult and impacting negatively on border security.
    • To think that the BSF can plug what is a government-to-government policy gap is prone to failure.

    Way forward

    • Coordination: The underlying issue when it comes to tackling both smuggling and infiltration threats is coordination between our security agencies.
    • Police reform: The state police forces have weakened, therefore, the solution lies in putting police reforms on an emergency footing, not in extending the BSF’s jurisdiction.
    • That we have a grave policing problem across India is undeniable.
    • But the answer is not to write them off; it is to insulate them from political misuse while holding them accountable for rule of law lapses.
    • Moreover, to strengthen police capabilities it is vital that other security forces cooperate with local police forces, not bypass them.
    • The BSF has had a relatively good record of local police cooperation thus far.
    • When it comes to cross-border infiltration, intelligence is the key.

    Conclusion

    Strengthening police capabilities, improving coordination between security agencies and cooperation with state law enforcement are needed to address these issues.

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  • Innovations in Biotechnology and Medical Sciences

    Punjab farmers create Bio-Enzymes from Kinnow

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Some farmers in Punjab, especially in the Kinnow belt, have started making Bio-Enzymes (BEs) from this waste fruit — peel and ‘D’ grade, very small kinnows.

    What is a Kinnow?

    • The ‘Kinnow’ is a high yield citrus fruit cultivated extensively in the wider Punjab region of India and Pakistan.
    • It is a year-long duration crop and the main harvesting period is from November-end to March.
    • It looks similar to orange but is smaller in size.

    Agricultural significance of Kinnows

    • Fallen fruit is a major challenge for kinnow farmers in the state as one needs to dig up small pits to bury them, otherwise the fallen fruit rot and invite a fly attack on the healthy fruit still on the plants.
    • But now, some farmers are using this waste kinnow to improve the pH level and soil fertility of their land by making BEs from this waste fruit.

    What are Bio-Enzymes?

    • Chemically, the Bio Enzymes are a mixture of complex organic substances such as proteins, salts and other materials that are by-products of the bacteria/yeast.
    • They produced through fermentation of organic waste including various fruits, vegetable peels and flowers, by mixing in sugar, jaggery/molasses and water.
    • BE’s also have a lot of usage in our daily lives. They can be used as natural cleansers.

    Benefits offered by BEs

    • BEs have a lot of good microbes and one of the major methods which helps overall improvement of our ecology.
    • It helps in mitigating the imbalance occurred due to overuse of chemicals, in our soil, air and water.
    • In a state like Punjab where water table is depleting fast and water contamination is also major issue, BEs can bring the soil back to life.
    • It helps in better water recharging and also stops the contamination of water by improving the health of soil.

     

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  • International Space Agencies – Missions and Discoveries

    What is the Lucy Mission?

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    The NASA has launched Lucy, the spacecraft on a 12-year cruise to look back into the origins of the solar system through Trojans.

    Lucy Mission

    • Lucy will fly by eight Jupiter asteroids—seven Trojans and one main-belt asteroid — over the next 12 years.
    • It is NASA’s first single spacecraft mission in history to explore so many different asteroids.
    • Lucy will run on solar power out to 850 million kilometers away from the Sun.
    • This makes it the farthest-flung solar powered spacecraft ever, according to NASA.

    What is Jupiter Trojan Asteroids?

    • Simply known as Trojans, they are a large group of asteroids that share Jupiter’s orbit around the Sun.
    • Thousands of such asteroids exist in a gravitationally stable space.
    • The swarms lead and follow the planet Jupiter along its orbit around the Sun.

    What exactly are Trojans?

    • Lucy’s Trojan destinations are trapped near Jupiter’s Lagrange (L) points, which are gravitationally stable locations — it is where the gravity from the Sun and from Jupiter cancel each other out.
    • This means their orbits are stable and the Trojans are trapped in the space between.
    • This also means that asteroids are as far away from Jupiter as they are from the Sun.
    • Jupiter’s leading and trailing Lagrangian points (L4 and L5) have been stable over the age of the solar system.
    • This means that their orbits have accumulated many, many asteroids.
    • It makes sense to call a Trojan a co-orbital object, which moves around one of the two stable Lagrangian points.

    When and how were they discovered?

    • It took many a scientist to understand Trojans, and subsequently, name them so.
    • A German astro-photographer in 1906 made an important discovery: An asteroid with a particularly unusual orbit. As Jupiter moved, this asteroid remained ahead of Jupiter.
    • It was observed that the asteroid was nearly 60 degrees in front of Jupiter.

    Students with engineering background would better understand who Lagrange was. Rest need not care.

    Lagrange’s propositions

    • This specific position of a peculiar behaviour was predicted by the Italian-French mathematician Joseph-Louis Lagrange over 100 years earlier.
    • Lagrange had argued that if a small celestial body is placed at one of two stable points in a planet’s orbit around the Sun (the L4 and L5), the asteroid would remain stationary from the planet’s perspective.
    • This is due to the combined gravitational forces of the planet and the Sun.
    • Thus, Lagrange’s prediction acquired credibility. More such asteroids were discovered over subsequent months in Jupiter’s Lagrange point L5.

    Behind the name: Lucy

    • It is the fossil of a hominin that lived 3.2 million years ago.
    • She is known to be one of the most famous pre-human fossil in history.
    • Nearly 40 per cent of the fossilised skeleton of this hominin was discovered in 1974 by a team of paleoanthropologists led by Donald Johanson.
    • The name was inspired from the famous Beatles song “Lucy in the Sky With Diamonds,” which Johanson’s team listened to at camp the night of their discovery.

     

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    Back2Basics: Lagrange Points

    • Lagrange points are positions in space where objects sent there tend to stay put.
    • They are named after Italian-French mathematician Josephy-Louis Lagrange.
    • At Lagrange points, the gravitational pull of two large masses precisely equals the centripetal force required for a small object to move with them.
    • These points in space can be used by spacecraft to reduce the fuel consumption needed to remain in position.
    • There are five special points where a small mass can orbit in a constant pattern with two larger masses.

     

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  • Historical and Archaeological Findings in News

    Places in news: Mawsmai Cave

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    A micro snail species named Georissa mawsmaiensis has recently been discovered from Mawsmai, a limestone cave in Meghalaya, 170 years after the last such discovery was made.

    Georissa mawsmaiensis

    • Georissa is found in soil or subterranean habitats in lowland tropical forest as well as high altitude evergreen forests or on rock surfaces rich in calcium.
    • The members of the Georissa genus are widely distributed across and reported from Africa, Asia, and the Pacific.
    • However, they are confined to microhabitats consisting of limestone caves or karst landscapes formed by the dissolution of limestone.

    About Mawsmai Cave

    • The Mawsmai cave is situated in the small village of Mawsmai, around four kilometres from Cherrapunjee (Sohra) in the East Khasi Hills district of Meghalaya.
    • It is located at an altitude of 1,195 metres above sea level and is indirectly influenced by the streams of the Kynshi river originating from the East Khasi Hills.
    • The term ‘Mawsmai’ means ‘Oath Stone’ in the Khasi language. The Khasi people use the local term ‘Krem’ for the cave.
    • It is famous for its fossils, some which can be spotted looking at the walls and formations inside.
    • The longest is Krem Liat Prah in the Jaintia Hills, which is 30,957 m (31 km approx.)

     

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  • Cyber Security – CERTs, Policy, etc

    The outlines of a national security policy

    op-ed snap | Security Issues | Mains Paper 3: Social Media Networks & Internal Security,Various Security Forces, Agencies & Their Mandates

    Context

    National security concepts have, in the two decades of the 21st century, undergone fundamental changes. Cyberwarfare has vastly reduced the deterrent value of conventional deterrents.

    Emergence of cyberwarfare

    • In the 21st century, after cybertechnology enters as an important variable in nations’ defence policies.
    • Geographical land size or GDP size will be irrelevant in war-making capacity or deterrence.
    • These fundamental changes are entirely due to the earlier 20th century innovations in cybertechnology and software developments.
    • Drones, robots, satellites and advanced computers as weapons are already in use.
    • Some examples of further innovations are artificial intelligence and nanotechnology.
    • Tracking those cyber warfare threat will need a new national security policy.
    • By credible accounts, China, recently, publicly cautioned Indians to sit up and take notice by using cybertechnology to shut down Mumbai’s electric supply in populated areas of the city, for a few hours.

    Four dimensions of national security policy

    • Objectives: the objective of the National Security Policy in the 21st century is to define what assets are required to be defended, the identity of opponents.
    • Although the novel coronavirus is perhaps accidental, it has completely destabilised peoples globally and their governments in all nations of the world over.
    • This is a preview of the kinds of threats that await us in the coming decades which a national security policy will have to address by choosing a nation’s priorities.
    • Priorities: National security priorities will require new departments for supporting several frontiers of innovation and technologies such as hydrogen fuel cells, desalination of seawater, thorium for nuclear technology, anti-computer viruses, and new immunity-creating medicines.
    • This focus on a new priority will require compulsory science and mathematics education, especially in applications for analytical subjects.
    • Strategy: The strategy required for this new national security policy will be to anticipate our enemies in many dimensions and by demonstrative but limited pre-emptive strikes by developing a strategy of deterrence of the enemy.
    • For India, it will be the China cyber capability factor which is the new threat for which it has to devise a new strategy.
    • Resource mobilisation: The macroeconomics of resource mobilisation depends on whether a nation has ‘demand’ as an economic deficit or not.
    • If demand for a commodity or service is in deficit to clear the market of the available supply of the same, then liberal printing of currency and placing it in the hands of consumers is recommended for the economy to recover the demand-supply parity.
    • A way to increase demand is by lowering the interest rate on bank loans or raising the rates in fixed deposits which will enable banks to obtain liquidity and lend liberally for enhancing investment for production.
    • If it is ‘supply’ that is short or in deficit compared to demand, then special measures are required to incentivise to encourage an increase in supply.

    Conclusion

    National security at its root in the 21st century will depend on mind-boggling skills in the four dimensions mentioned above.

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  • Is the Indian foreign-policy ship changing course?

    op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Context

    India plans to host an international conference on Afghanistan in the second week of November.

    Is the Indian foreign policy changing course?

    • All signs point towards a major calibration of the foreign-policy compass in recent weeks since the tumultuous events in Kabul two months ago culminated in the formation of an interim government by the Taliban.
    • As regards the way forward in Afghanistan, India has opted to align with the Anglo-American camp in the international line-up arrayed against the Eurasian axis of Russia, China and Iran.
    • While the US has an attitude of “You’re either with us, or against us”, vis-a-vis the Taliban, Russia, China, Iran and other neighbouring states give primacy to stability and security of Afghanistan.
    • Being a discontented party, unsurprisingly, India would have more in common with the revisionist powers — the US and the UK.
    • While the stated purpose of the participating countries is marking Afghanistan, it is the future that matters, being an epochal one that would transform the geopolitics of the region.
    • Thus, Delhi has moved up to the centrestage of the Quad.
    • In turn, the US accepts that the Quad ought to be “inclusive”. Global Britain is knocking at the door.
    • On its part, Delhi has displayed its comfort level with the AUKUS.
    • The historical Western experience of the EU and NATO moving in tandem to weaken a common enemy is being replicated with Asian characteristics.
    • A dual containment strategy is unfolding against China and Russia.
    • Thus, its short-lived dalliance with Iran is losing its gravitas and India has swung to the other extreme to identify with a new quadrilateral platform in West Asia, with Israel, UAE and the US.
    • India shrugs its shoulders as its “time-tested” friend, Moscow, bemoans the Quad and AUKUS.
    • This astonishing zigzagging in India’s regional policy takes the breath away.

    Challenges for India

    • India lives in its region and the Quad and AUKUS are of no help when it comes to Afghanistan.
    • Pakistan and China are riding high in the Hindu Kush; Moscow and Beijing have moved close in Central Asia which Washington is having a hard time in dealing with.
    • India’s much-touted “influence” in Kabul has turned out to be delusional.
    • Its own capacity to shape future events is virtually nil. These are the hard realities.

    Conclusion

    With the conference where India hopes to create an equivalent of the vajrayudha of the ancient Vedas which would allow India to reclaim its rightful place in the Afghan pantheon of gods and demi-gods.

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  • Solar Energy – JNNSM, Solar Cities, Solar Pumps, etc.

    Type Of Technologies in Solar Panels

    op-ed snap | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Context

    Large-scale solar projects in Tamil Nadu have seen rapid growth in recent years. By embracing advances in solar technologies, India can continue to lead in this sector.

    Factors driving growth

    • In the past five years, the cumulative installed capacity witnessed a four-fold increase in Tamil Nadu to 4.4 GW, as of March 2021.
    • High insolation level: Aiding this capacity addition is the State’s reasonably high insolation levels and matching solar potential, estimated at 279GW.
    • Decline in price: The sharp decline in the prices for solar and resulting cost competitiveness is another factor.
    • National target: Additionally, in response to the ambitious national targets and to spur sector specific development, Tamil Nadu released the Solar Policy of 2019, aiming for 9GW of solar installations by 2023.

    Type of technology use for solar panel

    • 1) Mono-crystalline Vs multi-crystalline panels: ‘First-generation’ solar cells use mono-crystalline and multi-crystalline silicon wafers.
    • The efficiency of mono-crystalline panels is about 24%, while for multi-crystalline panels it is about 20%.
    • Mono-crystalline cells are dominant today.
    • Although mono-crystalline panels are priced higher than multi-crystalline ones, the difference is diminishing and will soon attain parity.
    • This would result in mono panels being preferred over multi due to their higher efficiency, greater energy yield and lower cost of energy.
    • 2) Bifacial solar cells: Newer technologies incorporating crystalline silicon focus on bifacial solar cells, capable of harvesting energy from both sides of the panel.
    • Bifacials can augment the power output by 10-20%.
    • Within this, the Passive Emitter and Rear Contact technology is predicted to gain popularity. However, it is yet to achieve price parity for large-scale deployment.
    • 3) Thin-film technologies: It is classified as the ‘second generation of solar PVs.
    • In addition to being used in solar farms and rooftops, thin films with their low thickness, light weight and flexibility are also placed on electronic devices and vehicles, power streetlights and traffic signals.
    • Mainstream thin films utilise semiconductor chemistries like Cadmium Telluride with module efficiencies of around 19%.
    • Other technologies include Amorphous Silicon and Copper Indium Gallium Di-Selenide.
    • Nanocrystal and dye-sensitised solar cells are variants of the thin film technology. These are in early stages for large-scale commercial deployment
    • However, the efficiency of thin films is lower than that of crystalline silicon.
    • 4) Perovskite: These are grouped as ‘third generation’ and contain technologies such as perovskite, nanocrystal and dye-sensitised solar cells.
    • Perovskites have seen rapid advances in recent years, achieving cell efficiency of 18%.
    • They have the highest potential to replace silicon and disrupt the solar PV market, due to factors such as ease of manufacture, low production costs and potential for higher efficiencies.
    • 5) Use of Graphene Quantum-dots: Graphene is made of a single layer of carbon atoms bonded together as hexagons.
    • Solar cells made of graphene are of interest due to high theoretical efficiency of 60% and its super capacitating nature.
    •  Quantum-dot PVs use semiconductor nanocrystals exhibiting quantum mechanical properties capable of high efficiency of about 66%.
    • However, both these are in the early stages of research.

    Technologies to better integrate solar PVs into the grid

    • These technologies include weather forecasting and power output prediction systems; operation monitoring and control systems; and scheduling and optimisation systems.
    • Additionally, automatic systems have been developed for the smooth resolution of output fluctuations.

    Way forward

    • A portion of the budget for renewable energy targets should be set aside exclusively for new technologies.
    • Grants and subsidies can also be provided for their adoption.
    • Efforts must be taken to address gaps in research, development, and manufacturing capabilities in the solar sector through sector-specific investment and incentives.
    • There must also be greater industry-academia collaborations and funding opportunities for startups.
    • A comprehensive sector-specific skilling programme is also required for workers.

    Conclusion

    All these efforts would help the country become a global player in the solar power sector.

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  • Foreign Policy Watch: India – EU

    EU, India and the Indo-Pacific

    op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Context

    Last month, the EU released it “EU strategy for cooperation in the Indo-Pacific”. This document is very rich and needs to be analysed in the context of the rapprochement between the EU and India, which culminated in the June EU-India summit, a “turning point” according to some analysts.

    Important takeaways from EU’s Indo-Pacific strategy

    • The EU strategy in the Indo-Pacific appears to be over-determined by China’s expansionism.
    • “The display of force and increasing tensions in regional hotspots such as in the South and East China Sea and in the Taiwan Strait may have a direct impact on European security and prosperity,” the document says.
    • If security interests are highlighted in the beginning, they are rather low in the list of the objectives of the EU Indo-Pacific strategy, which are listed as: “Sustainable and inclusive prosperity; green transition; ocean governance; digital governance and partnerships; connectivity; security and defence; human security”.
    • Many paragraphs of the document are dedicated to values, including human rights.

    India does not figure prominently in the policy document

    • In terms of partnerships, India does not figure very prominently.
    • By contrast, ASEAN is presented as “an increasingly important partner for the EU”.
    • However, India appears in the list of the countries which already have an Indo-Pacific strategy and with which the EU is interested in a deeper “engagement”, a list made of ASEAN, Australia, India, Japan, New Zealand, the Republic of Korea, the UK and US.
    • However, the document does not mention the role India could play in value-chain diversification, a top priority of the EU since the Covid-19 pandemic in particular.
    • Yet, India is mentioned few pages later in a similar perspective when it is said that the EU will help “low and middle-income Indo-Pacific partners to secure access to the Covid-19 vaccine through the Covax facility and through other means”.
    • What the French see as India’s main asset, its strategic dimension, is not central in the EU document.
    •  India is listed as the EU’s first partner only in one area: “under the project Enhancing Security Cooperation in and with Asia (ESIWA), which covers counter-terrorism, cybersecurity, maritime security and crisis management.
    • The pilot partners are India, Indonesia, Japan, the Republic of Korea, Singapore and Vietnam, with EU military experts already operating in Indonesia and in Vietnam.”

    Understanding the German influence on the policy document

    • Thus, the EU strategy for cooperation in the Indo-Pacific is more in tune with the German vision of the Indo-Pacific than with the French one.
    • The fact that the German approach prevails in the EU document is a reflection of the influence of Berlin’s weltanschauung (worldview) in Europe — something Brexit has accentuated, Great Britain’s Indo-Pacific strategy being similar to France’s.
    • But China’s attitude may force Germany — and the EU — to change their mind in the near future.

    Conclusion

    By and large, the Indo-Pacific strategy of the EU remains driven by economic considerations and India, whose main asset is geopolitical and even geostrategic, does not figure prominently in it.

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  • NPA Crisis

    Gross NPAs of Banks to Rise

    | Economics | Mains Paper 3: Indian Economy

    Gross Non-Performing Assets (NPAs) of banks are expected to rise to 8-9% this fiscal from 7.5% as on March 31, 2021 but they would still remain below the peak of 11.2% seen at the end of fiscal 2018.

    What are Non-Performing Assets?

    • For a bank, the loans given by the bank is considered as its assets.
    • Any asset which stops giving returns to its investors for a specified period of time is known as Non-Performing Asset (NPA).
    • So, if the principle or the interest or both the components of a loan is not being serviced to the lender (bank), then it would be considered as NPA.

    Classification of NPAs in India

    • According to the RBI, a NPA is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.
    • Banks are required to classify NPAs further into Substandard, Doubtful and Loss assets.
    1. Substandard Assets: Assets which has remained NPA for a period less than or equal to 12 months.
    2. Doubtful Assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.
    3. Loss Assets: As per RBI, loss asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some salvage or recovery value.

    NPAs of Agriculture Loans

    In terms of Agriculture/Farm Loans, the NPA is defined as under:

    • For short duration crop such as paddy, Jowar, Bajra etc. if the loan (instalment/interest) is not paid for 2 crop seasons, it would be termed as an NPA.
    • For Long Duration Crops, the above would be 1 Crop season from the due date

    Reasons for NPAs in India

    Impact of NPA on Economy

    • Depositors’ loss: Depositors do not get rightful returns and many times may lose uninsured deposits.
    • High interest on lending: Banks may begin charging higher interest rates on some products to compensate NPA loan losses.
    • Trust issues: Bad loans imply redirecting of funds from good projects to bad ones. Hence, the economy suffers due to loss of good projects and failure of bad investments

    Steps taken to curb NPA

    (A) By the Govt

    • Mission Indradhanush:to make the working of public sector bank more transparent and professional in order to curb the menace of NPA in future.
    • Insolvency and Bankruptcy Code: To make it easier for banks to recover the loans from the debtors.
    • Stringent NPA recovery rules: The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act or SARFESI Act of 2002 was amended in 2016.

    (B) By RBI

    RBI introduced number of measures in last few years which include:

    • Corporate Debt Restructuring (CDR) mechanism,
    • Setting up a Joint Lenders’ Forum, providing banks to disclose the real picture of bad loans, asking them to increase provisioning for stressed assets,

    Other terms related to NPAs

    Write-off effect

    • A loan write-off is a tool used by banks to clean up their balance-sheets.
    • If a loan turns bad on the account of the repayment defaults for at least three consecutive quarters, the exposure (loan) can be written off.
    • A loan write-off sets free the money parked by the banks for the provisioning of any loan.

    Twin Balance Sheet

    • It deals with two balance sheet problems. One with Indian companies and the other with Indian Banks.
    • Debt accumulation on companies is very high and thus they are unable to pay interest payments on loans.

    Four Balance Sheet Challenge

    • In his paper named ‘India’s Great Slowdown’, Arvind Subramanian (former Chief Economic Advisor) mentions the new ‘Four balance sheet challenge’.
    • It includes the original two sectors – infrastructure companies and banks, plus NBFCs and real estate companies.

     

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