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

    SC quashes some provisions of 97th Amendment dealing with co-operative societies

    21 July 2021 | | Polity
    Mains GS2: GS2-01. Indian Constitution-Historical underpinnings & evolution; Features, amendments, significant provisions, basic structure of Constitution

    In a major boost for federalism, the Supreme Court has struck down parts of the 97th Constitution amendment which shrank the exclusive authority of States over their cooperative societies.

    Background

    • The Gujarat High Court in 2013 had held that the amendment, to the extent it introduced conditions for state laws on co-operative societies, was liable to be struck down.
    • This amendment was passed without the ratification of one-half of the state legislatures as mandated by Article 368(2) of the Constitution.
    • As per Article 368(2), ratification of one-half of state legislatures is required for an amendment that makes changes to an entry in the state list.
    • Since co-operative societies were a state subject as per Entry 32 in List II of the Seventh Schedule, the amendment introducing Part IX B required ratification as per Article 368(2), the High Court ruled.

    What was 97th Amendment about?

    • The 97th constitutional amendment dealt with issues related to the effective management of cooperative societies in the country.
    • It was passed by Parliament in December 2011 and had come into effect from February 15, 2012.
    • Part IXB, introduced in the Constitution through the 97th Amendment of 2012, dictated the terms for running cooperative societies.
    • The provisions in the amendment went to the extent of determining the number of directors a society should have or their length of tenure and even the necessary expertise.

    What is the recent Judgement?

    • In a majority judgment, the supreme court has held that cooperative societies come under the “exclusive legislative power” of State legislatures.
    • The judgment may be significant in the background of fears voiced by the States whether the new Central Ministry of Cooperation would disempower them.
    • The change in the Constitution has amended Article 19(1)(c) to give protection to the cooperatives and inserted Article 43 B and Part IX B, relating to them.
    • The Centre has contended that the provision does not denude the States of its power to enact laws with regard to cooperatives.

    Exceptions to the amendment

    • The Supreme court did not strike down the portions of Part IXB of the Amendment concerning “Multi-State Cooperative Societies” due to the lack of ratification.
    • When it comes to Multi-State Co-operative Societies (MSCS) with objects not confined to one State, the legislative power would be that of the Union of India.

    What was the dissenting opinion?

    • In his dissent, Justice K.M. Joseph said the doctrine of severability would not operate to distinguish between single-State cooperatives and MSCS.
    • The judge said the entire Part IXB should be struck down on the ground of absence of ratification.

    Back2Basics: Doctrine of Severability

    • Article 13 deals with laws inconsistent with or in derogation of fundamental rights.
    • It also deals with all laws enforced in India, before the commencement of the Constitution.
    • The doctrine of Severability in Article 13 can be understood in two dimensions
    1. Article 13(1) validates all Pre-Constitutional Law and thereby declares that all pre-Constitutional laws in force before the commencement of the Indian Constitution shall be void if they are inconsistent with the fundamental rights.
    2. Article 13(2) mandates the State that it shall not make any law that takes away or abridges the fundamental rights conferred in Part III of the Indian Constitution and any law contraventions this clause shall be void.
    • This doctrine widens the scope for Judicial Review on unconstitutional parts of any law.

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  • Renewable Energy – Wind, Tidal, Geothermal, etc.

    Why rooftop solar and storage offers a viable future for India

    21 July 2021 | | Environment
    Mains GS3: GS3-18.Conservation, Environmental Pollution and Degradation, Environmental Impact Assessment.

    The Union government’s target of producing 40 gigawatts of rooftop solar power by 2022 is unrealistic: The country could produce only 4.4 GW rooftop solar energy till March 31, 2021, according to the Union Ministry of New and Renewable Energy.

    What is Solar Rooftop?

    • A solar photovoltaic (PV) system mounted on a rooftop of a building is a mini-power requirement or feed into the grid.
    • The size of the installation varies significantly depending on the availability of space, amount of electricity consumed by the property and the ability or willingness of the owner to invest the capital required.

    Why rooftop?

    • Rooftop solar with a storage system is a benefit for both, end consumers as well as discoms (power distribution companies).
    • A one-kilowatt (kW) rooftop system can produce three to five units of electricity a day.
    • The combination increasingly becomes cost-effective for electricity generation compared to the traditional grid supply and diesel generators.
    • In 2021, solar and storage will be cheaper than grid supply for most commercial and industrial (C&I) customers.
    • The increase in penetration of rooftop solar in the distribution grid will have a significant impact on the stability of the grid.

    A viable alternative

    • Most housing societies in urban India rely on diesel generators for power backup. However, as power availability improves in the country, diesel generators will become redundant.
    • The operational cost of diesel generators is quite high— R16-18 per unit against Rs 5-6 a unit for solar rooftop systems. So rooftop solar power makes financial sense.Solar rooftop is also a perfect solution for commercial and institutional buildings that operate mostly during the day.
    • Their rooftops can be utilized to generate electricity, and they can, partially or completely, replace diesel generators. This would also help them reduce their electricity bills.

    Question of energy storage

    • In order to integrate rooftop solar and electric vehicles, the grid needs to be flexible and smart.
    • Energy storage systems will play a key role in providing this flexibility by acting as a load when there is a surplus generation, as well as generating sources when there is a supply shortage.
    • There are two major methods of integrating battery storage into the electric grid:
    1. Front-of-the-meter (FTM): It is implemented at the utility-scale, wherein the battery system is connected to the transmission or distribution network that ensures grid reliability. This happens on a considerably large scale (~MWh scale).
    2. Behind-the-meter (BTM): The other method is implemented at the residential and commercial/industrial level, mainly to provide backup during a power failure or to store excess locally generated energy from solar rooftop photovoltaic (PV) systems.

    India’s storage capacity

    • About 34 GW / 136 GWh of battery storage is expected to be installed by 2030, according to the Central Electricity Authority of India.
    • This capacity would be used for RE integration, demand-side and peak load management services.

    Storage challenges

    • The solar segment offers a huge market opportunity for advanced battery technologies.
    • However, manufacturers have some ground to cover in addressing technical limitations of batteries, such as charging characteristics, thermal performance and requirement of boost current to charge deep cycle batteries.
    • Since solar companies may directly procure batteries from manufacturers and require after-sale services and technical support, battery companies should have wider a presence to address these expectations.

    Other key challenges

    • Rooftop solar source doesn’t match the rise in renewable energy in India.
    • While industrial and commercial consumers account for 70% of total installed capacity residential consumers remain a big untapped potential to give the boost
    • Solar rooftops also face several challenges such as little consumer awareness, lack of innovative government policies or attention, bureaucratic hassles, and limited support from discoms.

    Way forward

    • Supportive policies and innovative technological approaches are needed for the sector to achieve its potential.
    • Indian policymakers need to plan for rooftop solar plus storage, rather than rooftop solar alone with the grid as storage (net / gross metering).
    • The declining cost of storage solutions, along with that of rooftop solar solutions, is likely to change the future of the Indian power sector.
    • Several countries such as Australia, the United States, Germany, among others have already endorsed solar power with battery storage.
    • Energy storage, therefore, represents a huge economic opportunity for India.
    • The creation of a conducive battery manufacturing ecosystem on a fast track could cement India’s opportunity for radical economic and industrial transformation in a critical and fast-growing global market.

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    What is Privilege Motion?

    21 July 2021 | |
    Mains GS2: Parliament & State Legislatures

    A spokesperson of the non-ruling political party has said that he will move a privilege motion against the Health Minister for misleading Parliament that no deaths were reported specifically because of shortage of oxygen.

    Breach of Privilege

    • Parliamentary privilege refers to the right and immunity enjoyed by legislatures, in which legislators are granted protection against civil or criminal liability for actions done or statements made in the course of their legislative duties.
    • The powers, privileges and immunities of either House of the Indian Parliament and of its Members and committees are laid down in Article 105 of the Constitution.
    • Article 194 deals with the powers, privileges and immunities of the State Legislatures, their Members and their committees.

    What is a privilege motion?

    • Parliamentary privileges are certain rights and immunities enjoyed by members of Parliament, individually and collectively, so that they can “effectively discharge their functions”.
    • When any of these rights and immunities are disregarded, the offence is called a breach of privilege and is punishable under law of Parliament.
    • A notice is moved in the form of a motion by any member of either House against those being held guilty of breach of privilege.
    • Each House also claims the right to punish as contempt actions which, while not breach of any specific privilege, are offences against its authority and dignity.

    What are the rules governing privilege?

    • Rule No 222 in Chapter 20 of the Lok Sabha Rule Book and correspondingly Rule 187 in Chapter 16 of the Rajya Sabha rulebook govern privilege.
    • It says that a member may, with the consent of the Speaker or the Chairperson, raise a question involving a breach of privilege either of a member or of the House or of a committee thereof.
    • The rules however mandate that any notice should be relating to an incident of recent occurrence and should need the intervention of the House.
    • Notices have to be given before 10 am to the Speaker or the Chairperson.

    What is the role of the Speaker/Rajya Sabha Chair?

    • The Speaker/RS chairperson is the first level of scrutiny of a privilege motion.
    • The Speaker/Chair can decide on the privilege motion himself or herself or refer it to the privileges committee of Parliament.
    • If the Speaker/Chair gives consent under Rule 222, the member concerned is given an opportunity to make a short statement.

    What is the privileges committee?

    • In the Lok Sabha, the Speaker nominates a committee of privileges consisting of 15 members as per respective party strengths.
    • A report is then presented to the House for its consideration. The Speaker may permit a half-hour debate while considering the report.
    • The Speaker may then pass final orders or direct that the report be tabled before the House.
    • A resolution may then be moved relating to the breach of privilege that has to be unanimously passed.
    • In the Rajya Sabha, the deputy chairperson heads the committee of privileges, which consists of 10 members.

    Answer this PYQ in the comment box:

    Q.With reference to the Parliament of India, which of the following Parliamentary Committees scrutinizes and reports to the House whether the powers to make regulations, rules, sub-rules, by-laws etc. conferred by the constitution of delegated by the Parliament are being properly exercised by the Executive within the scope of such delegation?

    (a) Committee on Government Assurances

    (b) Committee on Subordinate Legislation

    (c) Rules Committee

    (d) Business Advisory Committee

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  • Zoonotic Diseases: Medical Sciences Involved & Preventive Measures

    What is Monkey B virus?

    21 July 2021 | Prelims Only | Science and Technology
    Mains GS3: GS3-17.Awareness in the fields of IT, Space, Computers, Robotics, Nano-technology, Bio-technology and issues relating to Intellectual Property Rights.

    China has reported the first human death case with the Monkey B virus (BV).

    What is Monkey B virus?

    • The virus, initially isolated in 1932, is an alphaherpesvirus enzootic in macaques of the genus Macaca.
    • B virus is the only identified old-world-monkey herpes virus that displays severe pathogenicity in humans.

    Answer this question from our AWE initiative:

    There is been an increase in occurance of zoonotic human infectious diseases are zoonotic . Give reasons for this. Also suggest ways to contain and decrease the frequency of such events.(250 Words)

    How is it transmitted?

    • The infection can be transmitted via direct contact and exchange of bodily secretions of monkeys and has a fatality rate of 70 per cent to 80 per cent.
    • According to the Centre for Disease Control and Prevention, Macaque monkeys commonly have this virus, and it can be found in their saliva, feces, urine, or brain or spinal cord tissue.
    • The virus may also be found in cells coming from an infected monkey in a lab. B virus can survive for hours on surfaces, particularly when moist.

    When can a human get infected with B virus?

    • Humans can get infected if they are bitten or scratched by an infected monkey.

    Symptoms

    • Symptoms typically start within one month of being exposed to B virus but could appear in as little as three to seven days.
    • The first indications of B virus infection are typically flu-like symptoms such as fever and chills, muscle ache, fatigue and headache.
    • Following this, a person may develop small blisters in the wound or area on the body that came in contact with the monkey.
    • Some other symptoms of the infection include shortness of breath, nausea and vomiting, abdominal pain and hiccups.
    • As the disease progresses, the virus spreads to and causes inflammation (swelling) of the brain and spinal cord, leading to neurologic and inflammatory symptoms.

    Is there a vaccine against B virus?

    • Currently, there are no vaccines that can protect against B virus infection.

    Who are at higher risk for infection?

    • The virus might pose a potential threat to laboratory workers, veterinarians, and others who may be exposed to monkeys or their specimens.
    • To date, only one case has been documented of an infected person spreading the B virus to another person.

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  • Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

    [pib] One District One Focus Product Scheme

    21 July 2021 | Schemes | Agriculture
    Mains GS3: GS3-10.Food processing and related industries in India-scope’ and significance, location, upstream and downstream requirements, supply chain management

    ODOFP programme

    • The ODOFP programme cover products of agriculture and allied sectors for 728 districts of the country.
    • The products have been identified from agricultural, horticultural, animal, poultry, milk, fisheries, aquaculture, marine sectors across the country.
    • These identified products will be supported under the PM-FME scheme of the Ministry of Food Processing Industries, which provides incentives to promoters and micro-enterprises
    • This scheme is being implemented for a period of five years from 2020-21 to 2024-25.
    • The scheme adopts One District One Product (ODOP) approach to reap the benefits of scale in terms of procurement of inputs, availing common services and marketing of products.

    About ODOP

    • The ODOP scheme aims to identify one product per district based on the potential and strength of a district and national priorities.
    • A cluster for that product will be developed in the district and market linkage will be provided for that.
    • It is operationally merged with the ‘Districts as Export Hub’ initiative implemented by the Director-General of Foreign Trade (DGFT), Department of Commerce.
    • Under the initial phase of the ODOP programme, 106 Products have been identified from 103 districts across 27 States.

    Back2Basics: PMFME Scheme

    • A centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry.
    • It aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector,
    • It further aims to promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain.
    • The scheme envisions directly assist the 2,00,000 micro food processing units in providing financial, technical, and business support for the up-gradation of existing micro food processing enterprises.

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  • Freedom of Speech – Defamation, Sedition, etc.

    Surveillance reform is the need of the hour

    20 July 2021 | op-ed snap | Polity
    Mains GS2: Executive & Judiciary, Seperation Of Power

    Context

    The ‘Pegasus Project’ report says that over “300 verified Indian mobile telephone numbers, including those used by ministers, opposition leaders, journalists, the legal community, businessmen, government officials, scientists, rights activists and others”, were targeted using spyware made by the Israeli firm, NSO Group.

    Threat to press freedom

    • Revelations highlight a disturbing trend with regard to the use of hacking software against dissidents and adversaries.
    • A significant number of Indians reportedly affected by Pegasus are journalists.
    • This is not surprising since the World Press Freedom Index produced by Reporters Without Borders has ranked India 142 out of 180 countries in 2021. 
    • The press requires (and in democracies is afforded) greater protections on speech and privacy.
    • Privacy and free speech are what enable good reporting.
    • This has been recognised in Supreme Court decisions.
    • In the absence of privacy, the safety of journalists, especially those whose work criticises the government, and the personal safety of their sources is jeopardised.
    • Such a lack of privacy, therefore, creates an aura of distrust around these journalists and effectively buries their credibility.

    Issues with the legal provision

    • Provisions of law under the Indian Telegraph Act of 1885 and the Information Technology (IT) Act of 2000 are used by the government for its interception and monitoring activities. 
    • While the provisions of the Telegraph Act relate to telephone conversations, the IT Act relates to all communications undertaken using a computer resource.
    • Both provisions are problematic and offer the government total opacity in respect of its interception and monitoring activities.
    • Section 69 of the IT Act and the Interception Rules of 2009 are even more opaque than the Telegraph Act, and offer even weaker protections to the surveilled.
    • No provision, however, allows the government to hack the phones of any individual since the hacking of computer resources, including mobile phones and apps, is a criminal offence under the IT Act.

    Issues with surveillance system

    • Surveillance itself, whether under a provision of law or without it, is a gross violation of the fundamental rights of citizens.
    • Violation of freedom of speech: The very existence of a surveillance system impacts the right to privacy and the exercise of freedom of speech and personal liberty under Articles 19 and 21 of the Constitution, respectively.
    • It prevents people from reading and exchanging unorthodox, controversial or provocative ideas.
    • No scope for judicial scrutiny: There is also no scope for an individual subjected to surveillance to approach a court of law prior to or during or subsequent to acts of surveillance since the system itself is covert.
    • No oversight: In the absence of parliamentary or judicial oversight, electronic surveillance gives the executive the power to influence both the subject of surveillance and all classes of individuals, resulting in a chilling effect on free speech.
    • Against separation of power: Constitutional functionaries such as a sitting judge of the Supreme Court have reportedly been surveilled under Pegasus.
    • Vesting such disproportionate power with one wing of the government threatens the separation of powers of the government.
    • The existing provisions are insufficient to protect against the spread of authoritarianism since they allow the executive to exercise a disproportionate amount of power.

    Way forward

    • There needs to be oversight from another branch of the government.
    • Judicial oversight: Only the judiciary can be competent to decide whether specific instances of surveillance are proportionate, whether less onerous alternatives are available, and to balance the necessity of the government’s objectives with the rights of the impacted individuals.
    • Surveillance reforms: Not only are existing protections weak but the proposed legislation related to the personal data protection of Indian citizens fails to consider surveillance while also providing wide exemptions to government authorities.
    • Surveillance reform is the need of the hour in India.

    Consider the question “Discuss the threats posed by the use of surveillance systems by the government. Suggest the measures to deal with these threats.”

    Conclusion

    The only solution to the problem of spyware is immediate and far-reaching surveillance reform.

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  • Foreign Policy Watch: India-Afghanistan

    China’s role in stabilising Afghanistan

    20 July 2021 | op-ed snap | International Relations
    Mains GS2: India & Its Neighborhood – Relations

    Context

    Amid the gloom that has enveloped Afghanistan, one hope for many countries has been China’s potential role in stabilising it.

    Factors that call for China to play role in Afghanistan

    • Scope for India-China cooperation: In the past, even India thought that Afghanistan would be a natural area for India and China to work together.
    • But little came out of the understanding after the Wuhan summit in 2018.
    • Northern neighbours: Afghanistan’s northern neighbours, Turkmenistan, Uzbekistan, and Tajikistan all have expanding political and economic ties with China but have traditionally relied on Russia for their security.
    • They might support a larger role for Beijing in Afghanistan in partnership with Russia.
    • Iran, Kabul’s western neighbour, also has deepening ties with China.
    • Bilateral cooperation with the U.S.: Washington, now locked in an escalating confrontation with Beijing, sees Afghanistan as a potential area of bilateral cooperation. 
    • Role of Pakistan: Beijing is indeed critical in Pakistan’s plans for Afghanistan.
    • Afghan leaders have also been eager to draw China’s BRI into their plans for economic modernisation.
    • China was also important for Kabul’s political calculus in limiting Pakistan’s quest for dominance.

    Two challenges in China playing role in stabilising Afghanistan

    1) Caution in Chinese policy

    • The first relates to the deep sources of caution in Chinese policy.
    • Neither the prospect of mining Afghanistan’s natural resources nor the vanity of being the newest superpower will compel China to rush into the Afghan vacuum.
    • China has deep concerns about Taliban’s ideology and its potential role in fomenting instability in its restive Muslim-majority province, Xinjiang. 
    • Beijing cannot depend on its special relationship with the Pakistan army to ensure the security of China’s frontiers as well as its investments in Afghanistan.
    •  The growing attacks on CPEC projects in Pakistan, underline the difficulty of pursuing economic development amid endemic violence.

    2) Priorities of Taliban

    • The second set of problems relate to the priorities of Taliban.
    • It remains to be seen whether the economic development of Afghanistan is a top priority for the Taliban or not.
    • Also, is it open to let in foreign capital and all the baggage that comes with it?
    • More fundamentally, there is no clarity on the role of economic modernisation in Taliban’s fierce insistence on the creation of an Islamic emirate in Afghanistan.

    Conclusion

    It is against this backdrop that the chances of China playing a major role in stabilising Afghanistan remain slim.

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  • Women Safety Issues – Marital Rape, Domestic Violence, Swadhar, Nirbhaya Fund, etc.

    Explained: Conjugal rights before Supreme Court

    20 July 2021 | | Indian Society
    Mains GS1: GS1-06.Salient features of Indian Society

    The Supreme Court is expected to begin hearing a fresh challenge to the provision allowing restitution of conjugal rights under Hindu personal laws.

    What is the provision under challenge?

    • Section 9 of the Hindu Marriage Act, 1955, which deals with restitution of conjugal rights.

    What are conjugal rights?

    • Conjugal rights are rights created by marriage, i.e. the right of the husband or the wife to the society of the other spouse.
    • The law recognizes these rights— both in personal laws dealing with marriage, divorce etc and in criminal law requiring payment of maintenance and alimony to a spouse.
    • The concept of restitution of conjugal rights is codified in Hindu personal law now, but has colonial origins and has genesis in ecclesiastical law.
    • Similar provisions exist in Muslim personal law as well as the Divorce Act, 1869, which governs Christian family law.
    • Incidentally, in 1970, the United Kingdom repealed the law on restitution of conjugal rights.

    How can a case under Section 9 be filed?

    • If a spouse refuses cohabitation, the other spouse can move the family court seeking a decree for cohabitation.
    • If the order of the court is not complied with, the court can attach property.
    • However, the decision can be appealed before a High Court and the Supreme Court.
    • Normally, when a spouse files for divorce unilaterally, the other spouse files for restitution of conjugal rights if he or she is not in agreement with the divorce.
    • The provision is seen to be an intervention through legislation to strike a conciliatory note between sparring spouses.

    Why has the law being challenged?

    • The law is being challenged now on the main grounds that is violative of the fundamental right to privacy.
    • The plea argues that court-mandated restitution of conjugal rights amounted to a “coercive action” on the part of the state, which violates one’s sexual and decisional autonomy, and right to privacy and dignity.
    • In 2019, a nine-judge Bench of the Supreme Court recognised the right to privacy as a fundamental right.
    • The verdict in the privacy case set the stage for potential challenges to several laws such as the criminalization of homosexuality, marital rape, restitution of conjugal rights, the two-finger test in rape investigations.

    Question over gender-neutrality

    • Although the law is ex-facie (‘on the face if it’) gender-neutral since it allows both wife and husband to seek restitution of conjugal rights, the provision disproportionately affects women.
    • Women are often called back to marital homes under the provision and given that marital rape is not a crime, leaves them susceptible to such coerced cohabitation.
    • It will also be argued whether the state can have such a compelling interest in protecting the institution of marriage that it allows legislation to enforce the cohabitation of spouses.

    What has the court said about the law earlier?

    Supreme Court:

    • In 1984, the Supreme Court had upheld Section 9 holding that the provision “serves a social purpose as an aid to the prevention of break-up of marriage”.
    • Leading up to the Supreme Court intervention, two High Courts — those of Andhra Pradesh and Delhi — had ruled differently on the issue.

    AP High Court:

    • In 1983, AP High Court had for the first time struck down the provision and declared it null and void. It cited the right to privacy among other reasons.
    • The court also held that in “a matter so intimately concerned the wife or the husband the parties are better left alone without state interference”.
    • The court had, most importantly, also recognised that compelling “sexual cohabitation” would be of “grave consequences for women”.

    Delhi High Court:

    • In the same year, a single-judge Bench of the Delhi High Court took a diametrically opposite view of the law and upheld the provision.
    • From the definitions of cohabitation and consortium, it appears that sexual intercourse is one of the elements that go to make up the marriage.
    • But it is not the summum bonum (the ultimate aim). As if marriage consists of nothing else except sex.

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  • NPA Crisis

    [pib] Bad Bank launched for stressed assets

    20 July 2021 | | Economics
    Mains GS3: Indian Economy

    The Government has launched a Bad Bank with all the regulatory approvals in place.

    What is a Bad Bank?

    • A bad bank conveys the impression that it will function as a bank but has bad assets to start with.
    • Technically, it is an asset reconstruction company (ARC) or an asset management company that takes over the bad loans of commercial banks, manages them and finally recovers the money over a period of time.
    • Such a bank is not involved in lending and taking deposits, but helps commercial banks clean up their balance sheets and resolve bad loans.
    • The takeover of bad loans is normally below the book value of the loan and the bad bank tries to recover as much as possible subsequently.

    Global examples of Bad Bank

    • US-based BNY Mellon Bank created the first bad bank in 1988, after which the concept has been implemented in other countries including Sweden, Finland, France and Germany.
    • However, resolution agencies or ARCs set up as banks, which originate or guarantee to lend, have ended up turning into reckless lenders in some countries.

    Do we need a bad bank?

    • The idea gained currency during Rajan’s tenure as RBI Governor.
    • The RBI had then initiated an asset quality review (AQR) of banks and found that several banks had suppressed or hidden bad loans to show a healthy balance sheet.
    • However, the idea remained on paper amid lack of consensus on the efficacy of such an institution.
    • ARCs have not made any impact in resolving bad loans due to many procedural issues.

    What is the stand of the RBI and government?

    • While the RBI did not show much enthusiasm about a bad bank all these years, there are signs that it can look at the idea now.
    • Experts, however, argue that it would be better to limit the objective of these asset management companies to the orderly resolution of stressed assets, followed by a graceful exit.

    Good about the bad banks

    • The problem of NPAs continues in the banking sector, especially among the weaker banks.
    • The bad bank concept is in some ways similar to an ARC but is funded by the government initially, with banks and other investors co-investing in due course.
    • The presence of the government is seen as a means to speed up the clean-up process.
    • Many other countries had set up institutional mechanisms such as the Troubled Asset Relief Programme (TARP) in the US to deal with a problem of stress in the financial system.

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  • International Space Agencies – Missions and Discoveries

    Near-Earth Asteroid Scout Mission

    20 July 2021 | Prelims Only | Science and Technology
    Mains GS3: GS3-17.Awareness in the fields of IT, Space, Computers, Robotics, Nano-technology, Bio-technology and issues relating to Intellectual Property Rights.

    Last week, NASA announced that its new spacecraft, named NEA Scout, has completed all required tests and has been safely tucked inside the Space Launch System (SLS) rocket.

    For landing on Moon

    • NEA Scout is one of several payloads that will hitch a ride on Artemis I, which is expected to be launched in November.
    • Artemis I will be an uncrewed test-flight of the Orion spacecraft and SLS rocket.
    • Under the Artemis programme, NASA has aimed to land the first woman on the Moon in 2024 and also establish sustainable lunar exploration programs by 2030.

    What is NEA Scout?

    • Near-Earth Asteroid Scout, or NEA Scout, is a small spacecraft, about the size of a big shoebox. Its main mission is to fly by and collect data from a near-Earth asteroid.
    • It will also be America’s first interplanetary mission using special solar sail propulsion.
    • This type of propulsion is especially useful for small, lightweight spacecraft that cannot carry large amounts of conventional rocket propellant.
    • NEA Scout will use stainless steel alloy booms and deploy an aluminium-coated sail measuring 925 square feet.
    • The large-area sail will generate thrust by reflecting sunlight.
    • Energetic particles of sunlight bounce off the solar sail to give it a gentle, yet constant push.

    How will it study the asteroid?

    • NEA Scout is equipped with special cameras and can take pictures ranging from 50 cm/pixels to 10 cm/pixels.
    • It can also process the image and reduce the file sizes before sending them to the earth-based Deep Space Network via its medium-gain antenna.
    • The spacecraft will take about two years to cruise to the asteroid and will be about 93 million miles away from Earth during the asteroid encounter.

    Why should we study near-Earth asteroids?

    • Despite their size, some of these small asteroids could pose a threat to Earth.
    • Understanding their properties could help us develop strategies for reducing the potential damage caused in the event of an impact.
    • Scientists will use this data to determine what is required to reduce risk, increase effectiveness, and improve the design and operations of robotic and human space exploration.

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