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  • Land Reforms

    Land record Modernisation in India

    Updated land record system could help the landowner in many ways. However, there is a lack of an updated land record system in India. There are several factors responsible for it. The article highlights these factors.

    Need for updated land record

    • For a significant section of the rural poor, land is both an asset and a source of livelihood.
    • With livelihoods affected, the importance of land ownership for access to formal loans as well as government relief programmes became even more evident.
    • But the relatively poor availability of clear and updated land titles remains a hurdle.
    • The government of India’s Digital India Land Records Modernisation Programme (DI-LRMP) scheme is the most recent effort in encouraging updating of land record.

    Reasons for lack of updated land record data

    The National Council of Applied Economic Research made a pioneering effort in this direction by launching NCAER Land Records and Services Index (N-LRSI) in 2020.

    Following are the finding of NCAER about the poor state of land records.

    • The dismal state of land records is due to the failure of the Indian administration to evolve from British-era land policies.
    • In addition, land record regulations and policies vary widely across Indian states/union territories.
    • Though DI-LRMP provides a common framework for reporting the progress of land record management by states/UTs, the heterogeneous nature of regulations/guidelines for land record management in India makes the progress non-uniform.
    • One of the major roadblocks in ensuring continuous updation of land records is the lack of skilled manpower in land record departments in states.
    • Another dimension relates to the poor synergy across land record departments.
    • There is a lack of synergy between the revenue department as the custodian of textual records, the survey and settlement department managing the spatial records and the registration department, which is responsible for registering land transactions.
    • The swiftness of the process of updating ownership as the result of the registration of a transaction is commonly known as mutation.
    • The information obtained from all the state/UT sources in this regard revealed that no state/UT has the provision for online mutation on the same day as the registration.

    Way forward

    • With poor inter-departmental synergy, aspiring for updated and accurate records will always be a distant goal and states/UTs should take necessary actions to have the appropriate systems in place.
    • The improved system of land records is likely to facilitate the efforts that some states/UTs are making to ease land transactions — like lowering stamp duties by the Maharashtra government.
    • Finally, these efforts are going to be instrumental for the health of India’s rural economy.

    Consider the question “How an updated and functional land record system could help transform the rural economy? What are the hurdles in creating the updated land record system?”

    Conclusion

    The governments need to take measures to remove the hurdles in the creation of a robust land record system so as to help the landowners access institutional channels of credit.

  • Indian Army Updates

    Joint Logistics Node (JLN)

    As part of measures to boost tri-service integration and resource optimisation, Chief of Defence Staff General has operationalised the third joint logistics node (JLN) in Mumbai.

    Must read:

    Explained: How to unify defence resources

    Joint Logistics Node (JLN)

    • The Joint Operations Division (JOD) under the Headquarters Integrated Defence Staff pursued and enabled the establishment of the JLNs.
    • JLNs provide integrated logistics cover to the armed forces for their small arms ammunition, rations, fuel, general stores, civil hired transport, aviation clothing, spares and also engineering support to synergise their operational efforts.
    • The initiative would accrue advantages in terms of saving of manpower, economize utilization of resources, besides financial savings.
    • It is a very important first step in the direction of logistics integration of our three Services.
    • The government has operationalised the establishment of the JLNs in Mumbai, Guwahati and Port Blair.
  • What are Small Savings Instruments?

    The government has sharply slashed the rates on all small savings instruments for the first quarter of 2021-22 (Update: The order has been slashed now)

    What is the news?

    • The government has sharply slashed the rates of return on the Public Provident Fund down from 7.1% to 6.4% and effecting cuts ranging from 40 basis points (0.4%) to 110 basis points (1.1%).

    What are Small Savings Instruments?

    • Saving schemes are instruments that help individuals achieve their financial goals over a particular period.
    • These schemes are launched by the Government of India, public/private sector banks, and financial institutions.
    • The government or banks decide the interest rate for these schemes and are periodically updated.
    • You can use the savings you make through these schemes for emergencies, retirement, higher education, children’s education, marriage, at the time of job loss, to reduce debts and more.

    Why are they significant?

    Saving schemes are important for individuals of a country and, in turn, for an economy because of the following reasons:

    • Safety: Depositing your hard-earned excess money in saving schemes will help secure it for your future needs. Holding on to liquid money may not be safe.
    • Retirement Funds: Periodically, depositing money in long-term saving schemes can help you build a retirement corpus..
    • Tax Savings: Many saving schemes offer one or the other kind of tax benefits—may it be tax deductions, exemption, or both.
    • Avoid Unwanted Expenses: When you have all the money at hand, you may end up spending it on unwanted items.
  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    [pib] Emergency Credit Line Guarantee Scheme (ECLGS) 3.0

    The Government has extended the scope of Emergency Credit Line Guarantee Scheme (ECLGS) through introduction of ECLGS 3.0 to cover business enterprises in Hospitality, Travel & Tourism, Leisure & Sporting sectors.

    ECGL Scheme

    • Under the Scheme, 100% guarantee coverage to be provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs. 3 lakh crore to eligible MSMEs and interested MUDRA borrowers.
    • The credit will be provided in the form of a Guaranteed Emergency Credit Line (GECL) facility.
    • The Scheme would be applicable to all loans sanctioned under GECL Facility during the period from the date of announcement of the Scheme to 31.10.2020.

    Aims and objectives

    • The Scheme aims at mitigating the economic distress faced by MSMEs by providing them additional funding in the form of a fully guaranteed emergency credit line.
    • The main objective is to provide an incentive to Member Lending Institutions (MLIs), i.e., Banks, Financial Institutions (FIs) and NBFCs to increase access to, and enable the availability of additional funding facility to MSME borrowers.
    • It aims to provide a 100 per cent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers.

    Salient features

    • The entire funding provided under GECL shall be provided with a 100% credit guarantee by NCGTC to MLIs under ECLGS.
    • Tenor of the loan under Scheme shall be four years with a moratorium period of one year on the principal amount.
    • No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme.
    • Interest rates under the Scheme shall be capped at 9.25% for banks and FIs, and at 14% for NBFCs.

    ECLGS 3.0

    • It would involve extension of credit of upto 40% of total credit outstanding across all lending institutions.
    • The tenor of loans granted under ECLGS 3.0 shall be 6 years including moratorium period of 2 years.
    • Further, the validity of ECLGS i.e. ECLGS 1.0, ECLGS 2.0 & ECLGS 3.0 have been extended upto 30.06.2021 or till guarantees for an amount of Rs. 3 lakh crore are issued.
    • The revised operational guidelines in this regard shall be issued by National Credit Guarantee Trustee Company Ltd (NCGTC).

     

  • Nuclear Energy

    Baikal Gigaton Volume Detector

    Russian scientists have launched one of the world’s biggest underwater neutrino telescopes called the Baikal-GVD (Gigaton Volume Detector) in the waters of Lake Baikail, the world’s deepest lake situated in Siberia.

    Try this PYQ from CSP 2020:

    Q. The experiment will employ a trio of spacecraft flying in formation in the shape of equilateral triangle that has sides one million km long, with lasers shining between the craft.” the experiment in the question refers to?
    (a) Voyager-2
    (b) New horizons
    (c) LISA pathfinder
    (d) Evolved LISA

    Baikal GVD

    • The Baikal-GVD is one of the three largest neutrino detectors in the world along with the IceCube at the South Pole and ANTARES in the Mediterranean Sea.
    • The construction of this telescope, which started in 2016, is motivated by the mission to study in detail the elusive fundamental particles called neutrinos and to possibly determine their sources.
    • It will help understanding the origins of the universe since some neutrinos were formed during the Big Bang while others continue to be formed as a result of supernova explosions or because of nuclear reactions in the Sun.
    • An underwater telescope such as the GVD is designed to detect high-energy neutrinos that may have come from the Earth’s core, or could have been produced during nuclear reactions in the Sun.

    What are fundamental particles?

    • So far, the understanding is that the universe is made of some fundamental particles that are indivisible.
    • Broadly, particles of matter that scientists know about as of now can be classified into quarks and leptons.
    • Explorations has led to the discovery of over 12 such quarks and leptons, but three of these (protons, neutrons and electrons) is what everything in the world is made up of.
    • Protons (carry a positive charge) and neutrons (no charge) are types of quarks, whereas electrons (carry a negative charge) are types of leptons.
    • These three particles make what is referred to as the building block of life– the atom.

    Why do scientists study fundamental particles?

    • Studying what humans and everything around them is made up of gives scientists a window into understanding the universe a better way.
    • This is one reason why scientists are so keen on studying neutrinos (not the same as neutrons), which are also a type of fundamental particle.
    • Fundamental means that neutrinos, like electrons, protons and neutrons cannot be broken down further into smaller particles.

    So where do neutrinos fit in?

    • What makes neutrinos especially interesting is that they are abundant in nature, with about a thousand trillion of them passing through a human body every second.
    • In fact, they are the second most abundant particles, after photons, which are particles of light.
    • But while neutrinos are abundant, they are not easy to catch, this is because they do not carry a charge, as a result of which they do not interact with matter.
    • One way of detecting neutrinos is in water or ice, where neutrinos leave a flash of light or a line of bubbles when they interact.
    • To capture these signs, scientists have to build large detectors.

    Back2Basics: Lake Baikal

    • Lake Baikal is a rift lake located in southern Siberia, Russia, between Irkutsk Oblast to the northwest and the Buryat Republic to the southeast.
    • It is the largest freshwater lake by volume in the world, containing 22 to 23% of the world’s fresh surface water.
    • With a maximum depth of 1,642 m it is the world’s deepest lake.
    • It is among the world’s clearest lakes and is the world’s oldest lake, at 25–30 million years. It is the seventh-largest lake in the world by surface area.
    • Lake Baikal formed as an ancient rift valley and has a long, crescent shape, with a surface area of 31,722 km2 (12,248 sq mi), slightly larger than Belgium.
    • The region to the east of Lake Baikal is referred to as Transbaikalia or as the Transbaikal and the loosely defined region around the lake itself is sometimes known as Baikalia.
    • UNESCO declared Lake Baikal a World Heritage Site in 1996.
  • Finance Commission – Issues related to devolution of resources

    Still no recognition of the third tier

    The article highlights the issues with the Fifteenth Finance Commission recommendations with regard to the third tier of the local governments.

    Significance of Finance Commission recommendations for local government

    • The primary task of the Union Finance Commission is to rectify the vertical and horizontal imbalances in resources and expenditure responsibilities between Union and States including the third tier of local governments.
    • Part IX and Part IX-A were incorporated into the Constitution by the 73rd and 74th Constitutional Amendment.
    • Part IX and Part IX-A mandate the Union Finance Commission to supplement the resources of panchayats and municipalities on the basis of the recommendations of the State Finance Commission.
    • Now, nearly 2.5 lakh local governments and over 3.4 million elected representatives form the real democratic base of the Indian federal polity.

    Increase in vertical devolution

    • The Fifteenth Finance Commission has raised the vertical devolution recommended to local governments to 4.23% with a reasonably estimated amount of ₹4,36,361 crore.
    • Compared with the Fourteenth Finance Commission there is a 52% increase in the vertical share.
    • Even if we deduct the grant of ₹70,051 crore earmarked for improving primary health centres, the share is still an all-time high of 4.19%.
    • All the Commissions since the Eleventh Commission have tied specific items of expenditure to local grants and the Fifteenth Finance Commission has raised this share to 60% and linked them to drinking water, rainwater harvesting, sanitation and other national priorities in the spirit of cooperative federalism.

    Reduction in performance-based  grants

    • The Fifteenth Finance Commission has reduced the performance-based grant to just ₹8,000 crore — and that too for building new cities, leaving out the Panchayati Raj Institutions (PRIs) altogether.
    • The performance-linked grants were introduced by the Thirteenth Finance Commission and covered a wide range of reforms.
    • The transformative potential in designing performance-linked conditionalities for improving the quality of decentralised governance in the context of indifferent states is missed.

    Encouraging standardisation of accounting system

    • An important recommendation of the Fifteenth Finance Commission is the entry-level criterion to avail the union local grant (except health grant) by local governments.
    • For panchayats, the condition is the online submission of annual accounts for the previous year and audited accounts for the year before.
    • For urban local governments, two more conditions are specified: fixation of the minimum floor for property tax and improvement in its collection.
    •  It is not clear why gram panchayats are left out from this.
    • Although Finance Commissions, from the Eleventh to the Fourteenth, have recommended measures to standardise the accounting system and update the auditing of accounts, the progress made has been halting.
    • Therefore, the entry-level criteria of the Fifteenth Finance Commission are timely.

    Missed opportunity to ensure minimum public services

    • The Fifteenth Finance Commission failed to carry policy choices forward systematically.
    • Articles 243G, 243W and 243ZD read along with the functional decentralisation of basic services like drinking water, public health care, etc., mandated in the Eleventh and Twelfth schedules demand better public services and delivery of ‘economic development and social justice’ at the local level.
    • A good opportunity to ensure comparable minimum public services to every citizen irrespective of her choice of residential location has not been taken forward in an integrated manner.

    Missing equalisation principle for the local government

    • The Fifteenth Finance Commission claims that it seeks to achieve the “desirable objective of evenly balancing the union and the states”.
    • It is not clear why there is no recognition of the third tier in this balancing act.
    • It may be relevant to recall that the Alma-Ata declaration of the World Health Organization (1978) which outlined an integrated, local government-centric approach with a simultaneous focus on access to water, sanitation, shelter and the like.
    • There is no integrated approach in the recommendations of the Fifteenth Finance Commission about the local governments (in contrast to the recommendations of the Thirteenth Finance Commission).
    • Although the Fifteenth Finance Commission stresses the need to implement the equalisation principle, it is virtually silent when it comes to the local governments.

    Equity and efficiency sidelined

    • The Fifteenth Finance Commission employed population (2011 Census) with 90% and area 10% weightage for determining the distribution of grant to States for local governments.
    • The same criteria were followed by the Fourteenth Finance Commission.
    • While this ensures continuity, equity and efficiency criteria are sidelined.
    • Abandoning tax effort criterion incentivises dependency, inefficiency and non-accountability.

    Consider the question “Discuss the various aspects of the Fifteenth Finance Commission’s recommendations with regard to local governments.”

    Conclusion

    In sum, if decentralisation is meant to empower local people, the primary task is to fiscally empower local governments to deliver territorial equity. We are far from this goal.

  • Foreign Policy Watch: India-United States

    US foreign policy has changed, India can’t bank on being its ‘ally’ anymore

    The article highlights the paradigm shift in the U.S. foreign policy in which the U.S. engages with a country on several parallel lines with little or no scope for a trade-off between them.

    Changes in the U.S. foreign policy

    •  US foreign policy is no longer based on old friend-or-foe classification under which transgressions by a “friend” or an “ally” were overlooked if the country was helpful to US self-interests.
    • Instead, the US foreign policy paradigm has shifted to one where a country’s position on an issue — trade, climate change, security, or human rights — is the categorising principle and not the country.
    • Put differently, engagement with countries will be done on issues with little or no trade-off among them.
    • Competition, cooperation, and confrontation can all characterise the US’s bilateral engagement depending on the specific issue.
    • For example, trade will involve competition while climate change and pandemics will necessitate cooperation.
    • Human rights and national security issues could be confrontational.

    Smart sanctions

    • A key instrument of foreign policy will be the now well-honed system of “smart” sanctions.
    • Sanctions in the past were directed at a country as a whole but such sanctions were counterproductive and created anti-US sentiment.
    • In its latest version, smart sanctions do not target countries, but specific individuals, firms, and institutions for a variety of alleged transgressions.
    • US businesses and individuals cannot transact with sanctioned entities.
    • The Magnitsky Accountability Act of 2012, for example, targeted those involved in the death of Russian lawyer Sergei Magnitsky and others responsible for human rights abuses in Russia.
    • When this was found to be successful, an executive order, passed in 2017, extended the provisions in the Magnitsky Act, to all who are corrupt or violate human rights in the world.

    What does this mean for India

    • Unlike in the antiquated rational-actor paradigm where there are imagined trade-offs across issues, in the new framework the US engages with countries on parallel lines.
    • The engagement is multifaceted across trade, intellectual property rights, climate change, security, terrorism, and, importantly, human rights, with limited trade-off across them.
    • Whether cooperation, competition, or confrontation dominate the nature of the engagement will depend on the specifics not whether India is a friend or a foe.

    Conclusion

    This marks the shift in the U.S. foreign policy, if others, including India, do not adapt to this paradigm shift, then they will find engagement with the US starkly different and surprisingly difficult.

  • North-East India – Security and Developmental Issues

    Article 244 (A) of the Constitution

    A national party leader has promised to implement Article 244 (A) of the Constitution to safeguard the interests of the people in Assam’s tribal-majority districts.

    What is Article 244(A)?

    • Article 244(A) allows for the creation of an ‘autonomous state’ within Assam in certain tribal areas.
    • Inserted into the Constitution in 1969 by the then government, it also has a provision for a Legislature and a Council of Ministers.

    Try this PYQ from CSP 2018:

    Q.The Government enacted the Panchayat Extension to Scheduled Areas (PESA) Act in 1996. Which one of the following is not identified as its objective?

    (a) To provide self-governance

    (b) To recognize traditional rights

    (c) To create autonomous regions in tribal areas

    (d) To free tribal people from exploitation

    How is it different from the Sixth Schedule of the Constitution?

    • The Sixth Schedule of the Constitution — Articles 244(2) and 275(1) — is a special provision that allows for greater political autonomy and decentralized governance.
    • It is applicable to certain tribal areas of the Northeast through autonomous councils that are administered by elected representatives.
    • Article 244(A) accounts for more autonomous powers to tribal areas.
    • In Autonomous Councils under the Sixth Schedule, they do not have jurisdiction of law and order.

    How did the demand arise?

    • In the 1950s, a demand for a separate hill state arose around certain sections of the tribal population of undivided Assam.
    • In 1960, various political parties of the hill areas merged to form the All Party Hill Leaders Conference, demanding a separate state.
    • After prolonged agitations, Meghalaya gained statehood in 1972.
    • The leaders of the Karbi Anglong and North Cachar Hills were also part of this movement. They were given the option to stay in Assam or join Meghalaya.
    • They stayed back as the then government promised more powers, including Article 244 (A). Since then, there has been a demand for its implementation.
    • In the 1980s, this demand took the form of a movement with a number of Karbi groups resorting to violence. It soon became an armed separatist insurgency demanding full statehood.
  • Citizenship and Related Issues

    OCI card holders no longer required to carry old passports for India travel

    People of Indian origin (PIO) and the Indian diaspora having Overseas Citizens of India (OCI) cards are now not required to carry their old, expired passports for travel to India.

    UPSC can ask statement based question in prelims based on the definition and privileges of OCI card-holders.

    Who is an Overseas Citizen?

    • An OCI is a category introduced by the government in 2005.
    • Persons of Indian Origin (PIOs) of certain categories as specified in the Citizenship Act, 1955 are eligible for being OCI cardholders.
    • Some of the benefits for PIO and OCI cardholders were different until 2015 when the government merged these two categories.
    • The MHA defines an OCI as a person who was a citizen of India on or after January 26, 1950; or was eligible to become a citizen of India on that date; or who is a child or grandchild of such a person, among other eligibility criteria.
    • According to Section 7A of the OCI card rules, an applicant is not eligible for the OCI card if he, his parents or grandparents have ever been a citizen of Pakistan or Bangladesh.

    Privileges to an OCI

    • OCI cardholders can enter India multiple times, get a multipurpose lifelong visa to visit India, and are exempt from registering with Foreigners Regional Registration Office (FRRO) no matter how long their stay.
    • If an individual is registered as an OCI for a period of five years, he/she are eligible to apply for Indian citizenship.
    • At all Indian international airports, OCI cardholders are provided with special immigration counters.
    • OCI cardholders can open special bank accounts in India, they can buy the non-farm property and exercise ownership rights and can also apply for a driver’s license and PAN card.
    • However, OCI cardholders do not get voting rights, cannot hold a government job and purchase agricultural or farmland.
    • They cannot run for public office either, nor can they travel to restricted areas without government permission.

    Why such a move?

    • There had been inconvenience caused to members of the Indian diaspora due to certain OCI card rules as they undertook to travel to India during the pandemic.
    • He said some of the passengers were not allowed to board flights to India and were sent back from airports as they were not carrying their old foreign passports, which was required as per government rules.
    • The OCI card, among other benefits, allows multiple entries, multi-purpose lifelong visa to an Indian-origin foreign national to visit India.
    • Under the provisions of the OCI card, which gives the cardholder a lifelong visa to India, those below 20 years and above 50 years need to renew their OCI card every time they have their passport renewed.

    Back2Basics: PIO vs. OCI

  • Foreign Policy Watch: India-Pakistan

    Pakistan allows import of cotton, sugar from India

    Partially reversing a two-year-old decision to suspend all trade with India, Pakistan recently announced that it would allow the import of cotton and sugar from across the border.

    Ever wonder why the neighbour next door suddenly wants to normalize all ties? Read this edition of ours:

    India-Pakistan trade relations

    • Trade between the subcontinental neighbours has always been linked to their political interactions, given their tumultuous relationship.
    • For instance, India’s exports to Pakistan dropped by around 16 per cent to $1.82 billion in the 2016-17 financial years from $2.17 billion in 2015-16.
    • This coincided with the rise in tensions between the two countries following the terrorist attacks in Uri in 2016 and the surgical strikes by India against Pakistan-based militants.

    How much is the volume of trade?

    • Trade between the two countries grew marginally in subsequent years despite continuing tensions.
    • India’s exports to Pakistan increased to nearly 6 per cent to $1.92 billion in 2017-18, and by around 7 per cent to $2.07 billion in 2018-19.
    • Imports from Pakistan, though much lower than India’s exports to the country, also increased by 7.5 per cent to $488.56 million in 2017-18 from $454.49 million in 2016-17.
    • Growth of imports from Pakistan slowed to around $494.87 million in 2018-19 — an increase of around 1 per cent — before political relations between the two countries took a turn for the worse in 2019.

    Why did Pakistan ban trade with India?

    • Pakistan’s decision to suspend bilateral trade with India in August 2019 was primarily a fallout of India’s decision to scrap Article 370.
    • Pakistan called the move “illegal”, and took this trade measure as a way of showing its dissatisfaction.
    • However, an underlying reason for suspending trade between the two countries was also the 200 per cent tariff imposed by New Delhi on Pakistani imports.
    • This was a move that India implemented earlier that year after revoking its status as a Most Favoured Nation following the suicide bomb attack on the CRPF in Pulwama.
    • Pakistan’s announcement, coupled with India’s decision to revoke its MFN status and hike duties on its goods, was considered by some experts to be one of the most drastic measures ever taken in diplomatic tensions.

    Why is Pakistan allowing cotton and sugar import now?

    • Textiles from Pakistan are its value-added export.
    • The proposal to lift the ban on cotton imports came in the backdrop of a shortfall in raw material for Pakistan’s textile sector, which has reportedly been facing issues due to a low domestic yield of cotton in the country.
    • On top of this, imports from other countries like the US and Brazil have reportedly been more expensive and takes longer to arrive in the country.

    Why only these two commodities?

    • Even when we had a very small positive list (of goods for trade with Pakistan), agricultural commodities were always there in the list.
    • Cotton has been one of Pakistan’s major imports from India. In 2018-19, Pakistan imported $550.33 million worth of cotton from India.
    • When coupled with $457.75 million worth of organic chemicals, these products made up around half of its total imports from India.
    • Where sugar is concerned, trade experts feel it is a result of a long-standing interdependence between India and Pakistan over such agricultural commodities and a potential shortage in domestic supply.
    • If finally approved, cotton and sugar would be the second and third commodities allowed for export from India after Islamabad lifted the ban on medicine and related raw material imports during the Covid-19 pandemic.

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