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  • UDAY Scheme for Discoms

    Reforms-Linked, Result-Based Scheme for Distribution’ (RLRBSD)

    op-ed snap | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    The debt burden of discoms is estimated to touch 4.5 lakh crore by the end of 2020-21. This high level of debt underscores the need for reforms in the discoms. With this in view, RLRBSD has been launched by the Centre. The article highlights the issues with this scheme.

    Reforms-Linked, Result-Based Scheme for Distribution’ (RLRBSD)

    • In her FY22 Budget speech, Finance Minister proposed Electricity (Amendment) Bill, 2021, which intends to delicence the distribution business, bring in competition, and give the consumer power to choose her supplier.
    • She also unveiled the Rs 3 lakh crore electricity distribution reform programme to reduce losses and improve the efficiency of discoms.
    •  Against this background, the RLRBSD aims at helping discoms trim their electricity losses to 12-15% from the present level.
    • The aggregate technical and commercial (AT&C) losses and shortfall in the average revenue realisation from the sale of electricity vis-a-vis the average cost of supply or the ACS-ARR gap, are major causes for losses of discoms.
    • Accordingly, the scheme sets the target for both to be achieved by 2025.
    • It also aims to gradually narrow the deficit between the cost of electricity and the price at which it is supplied to ‘zero’ by March 2025.
    • It will also have a compulsory pre-paid and smart metering component to be implemented across the power supply chain, including in about 250 million households.

    Funding for RLRBSD

    • The Centre is expected to contribute around Rs 60,000 crore to the scheme’s corpus.
    • The rest may be raised from multilateral funding agencies such as ADB and World Bank (WB).
    • The Centre’s contribution will be met through the previous commitment of the ongoing schemes, viz. the Integrated Power Development Scheme (IPDS) and the Deen Dayal Upadhyaya Gram Jyoti Yojna (DDUGJY).
    • The funds will be released subject to discoms meeting reform-related milestones.

    Analysing RLRBSD against the context of UDAY

    • Under UDAY, discoms were required to reduce AT&C losses from 20.7% during 2015-16 to 15% by 2018-19.
    • During 2019-20, their AT&C losses were 18.9% against the 15% target for 2018-19.
    • Further, they were to reduce the ACS-ARR gap from Rs 0.59 per unit during 2015-16 to ‘zero’ by 2018-19.
    • The ACS-ARR gap during 2019-20, stood at Rs 0.42 per unit against target of ‘zero’ for 2018-19.
    • Simultaneously, the government gave them a financial restructuring package (FRP).
    • The FRP was nothing but a condoning of discoms’ staggering debt of about Rs 4 lakh crore.
    • Against this backdrop, aims of achieving those targets by 2025 under RLRBSD, which should have been achieved by 2018-19 under UDAY seems difficult.

    3 factors that contribute to  debt of discoms

    • 1) At the root of persistent and increasing losses of discoms is the orders issued by state governments to sell electricity to some preferred consumers, viz. poor households and farmers.
    • Electricity is supplied to these customers either at a fraction of the cost of purchase, transmission and distribution, or even free.
    • On the units sold to these groups, discoms incur colossal under-recovery.
    • 2) This is aggravated by AT&C losses—most of it plain theft.
    • 3) Inflated tariff allowed to independent power plants (IPPs) under purchase agreements adds to the revenue shortfall.

    Consider the question “Why the discoms in India require frequent bail-outs? How far will the Reforms-Linked, Reforms-Based Scheme for Distribution be successful in addressing the woes of discoms?”

    Conclusion

    The problem is entirely political. In a bid to win elections almost every political party promises sops which include, among others, power supply to farmers and poor households at a throwaway price or even free. As long as this effect of populist politics persists, the discoms will continue to be in the red, needing a bailout at frequent intervals.

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  • The perils of domicile-based preferential policies

    op-ed snap | Polity | Mains Paper 2: Federalism,Government Scheme/Policies,Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    The Haryana government is considering a Bill that provides for 75 per cent reservation to the residents of the state. This article discusses the challenge such policies poses.

    Domicile-based preferential policies on rise

    • The Haryana government’s State Employment of Local Candidates Bill 2020 reserves 75 per cent of new jobs in private establishments for Haryana residents.
    • Andhra Pradesh has mandated 75 per cent reservation for locals.
    • Karnataka is considering reserving all blue-collar jobs for locals.
    • Madhya Pradesh has announced that public employment in the state be reserved for state residents.

    Constitutionality of such policies

    • The Constitution prohibits discrimination based on place of birth.
    • The right to move freely in the country and reside and settle in any part of it, the right to carry out any trade or profession, are all established rights.
    • Article 16(3) does, in principle, enable Parliament [ not state legislature] to provide for domicile-based preferential treatment in public employment.

    Judicial scrutiny

    • The constitutionality of domicile-based employment preferences (unlike preferences in education) has never been frontally tested.
    • But almost all the existing case law that impinges on the matter clearly indicates such laws are unconstitutional.
    • In Pradeep Jain vs Union of India, the court had indicated this direction; in Kailash Chandra Sharma vs State of Rajasthan, the court had warned against parochialism.
    • The Andhra Pradesh Bill is sub judice in the high court.

    Issues with the policies

    • The Supreme Court will hopefully rule on the constitutionality of the  Haryana government’s Bill.
    • But the Bill has ramifications beyond constitutionality.
    • First, because this kind of constitutional cynicism is now not an exception but has become a contagion.
    • Second, even if the Bill is struck down, such a high wire act is meant to fuel the flames of localism.
    • Third, the Bill now exposes the bad faith of political parties on private sector reservation more generally.
    • Fourth, these bills will open up a new form of competitive ethnic politics.
    • It is odd that a state like Haryana which has benefitted from being part of a cosmopolitan zone like NCR should unilaterally impose reservations.
    • Fifth, there is patent class discrimination: If you are rich, privileged or highly skilled, there are no entry barriers in accessing any labour market.
    • But we shall put entry barriers on lower skilled migrants; our own internal version of an H-1B visa.
    • The greatest damage the Bill does is to increase the discretionary power of the state, almost taking us back to a license permit raj, where companies will have to bargain, or worse, bribe the state for exemptions.
    • This is the antithesis of regulatory reform.

    Consider the question “There have been growing tendencies among the states to pursue domicile-based preferential policies. What are the issues related to such policies?”

    Conclusion

    But the fact that states feel the need to enact these bills is an indictment of the economy as a whole: They suggest a pessimism about both education and job creation. So we have returned to a world of zero sum thinking.

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  • Minority Issues – SC, ST, Dalits, OBC, Reservations, etc.

    Haryana’s new Job Quota Rule

    | Polity | Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    The Haryana government has notified a new law that requires 75% of private-sector jobs in the state, up to a specified salary slab, reserved for a local candidate.

    Haryana’s move has renewed the debate on whether the government force should private companies to adopt its reservation policy in jobs. While constitutional guarantees for reservation have been limited to public employment, attempts to extend it to private sector are not new either.

    Haryana Quota Rule

    • The Haryana State Employment of Local Candidates Bill, 2020 requires private companies to set aside for domiciles 75% of jobs up to a monthly salary of Rs 50,000 or as may be notified by the government.
    • The law is applicable to all companies, societies, trusts, limited liability partnership firms, partnership firms and any person employing 10 or more persons.

    Other states with such laws

    • In July 2019, the Andhra Pradesh government had passed a similar law, which was challenged in court.
    • The Andhra Pradesh High Court had made a prima facie observation that the move might be unconstitutional, but the challenge is yet to be heard on merits.

    What are the legal issues in such laws?

    Two big legal questions come up.

    (1) Question of domicile reservation

    • While domicile quotas in education are fairly common, courts have been reluctant in expanding this to public employment.
    • Last year, the MP government decided to reserve all government jobs for “children of the state”, raising questions relating to the fundamental right to equality of citizens.

    (2) Right to Equality

    • The second question, which is more contentious, is the issue of forcing the private sector to comply with reservations in employment.
    • For mandating reservation in public employment, the state draws its power from Article 16(4) of the Constitution.
    • It says that the right to equality in public employment does not prevent the state from “making any provision for the reservation of appointments or posts in favour of any backward class of citizens which is not adequately represented in the services under the State.
    • The Constitution has no manifest provision for private employment from which the state draws the power to make laws mandating reservation.

    Rationale in bringing such laws

    Providing reservation in public employment is one of the many ways through which the state endeavours to ensure equal opportunity for all citizens.

    • With public sector jobs constituting only a minuscule proportion of all jobs, legislators have talked about extending the legal protections to the private sector.
    • They aim to really achieve the constitutional mandate of equality for all citizens.
    • One argument often made in favour of reservation for private jobs is that private industries use public infrastructure in many ways.
    • A similar argument was made in requiring private schools to comply with the Right to Education Act, which the Supreme Court also upheld.

    Global precedences

    • Affirmative action is adopted in many countries in the context of race and gender.
    • In the US, there is no statutory requirement for employers to have quotas.
    • Courts can order monetary damages and injunctive relief, including “such affirmative action as may be appropriate”, for victims of discrimination.
    • The Employment Equity Act in Canada also protects minority groups, especially aboriginals from discrimination in federally regulated industries, even in the private sector.

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  • Sugar Industry – FRP, SAP, Rangarajan Committee, EBP, MIEQ, etc.

    Minimum Selling Price for Sugar

    Prelims Only | Agriculture | Mains Paper 3: Issues Related To Farm Subsidies & Msp

    The Indian Sugar Mills’ Association (ISMA) has asked for an increase in the Minimum Selling Price of Sugar.

    Try this PYQ:

    Q.The Fair and Remunerative Price (FRP) of sugarcane is approved by the:

    (a) Cabinet Committee on Economic Affairs

    (b) Commission for Agricultural Costs and Prices

    (c) Directorate of Marketing and Inspection, Ministry of Agriculture

    (d) Agricultural Produce Market Committee

    Minimum Selling Price (MSP) for Sugar

    • The price of sugar is market-driven & depends on the demand & supply of sugar.
    • However, with a view to protecting the interests of farmers, the concept of MSP of sugar has been introduced since 2018.
    • MSP of sugar has been fixed taking into account the components of Fair & Remunerative Price (FRP) of sugarcane and minimum conversion cost of the most efficient mills.

    How is the pricing of Sugarcane done?

    • With the amendment of the Sugarcane (Control) Order, 1966, the concept of Statutory Minimum Price (SMP) of sugarcane was replaced with the Fair and Remunerative Price (FRP)’ of sugarcane in 2009-10.
    • The cane price announced by the Central Government is decided on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
    • This is done in consultation with the State Governments and after taking feedback from associations of the sugar industry.

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  • Hunger and Nutrition Issues – GHI, GNI, etc.

    Food Waste Index Report 2021

    IOCR | International Relations | Mains Paper 1: Poverty & Development Issues

    The Food Waste Index Report 2021 was recently released by the UNEP.
    Even though the world produces enough food to feed twice the world’s present population, food wastage is ironically behind the billions of people who are starving.

    Food Waste Index

    • The Food Waste Index is released by the United Nations Environment Programme (UNEP) and partner organisation WRAP.
    • It measures tons of wasted food per capita, considering a mixed stream of products from processing through to consumption.
    • It was prepared by using data from 54 countries and then extrapolated to the remaining countries.
    • Contrary to belief, the study by the UNEP revealed that food waste was a global problem and not that of just the developed world.

    Highlights of the 2021 report

    • The report has revealed that 17 per cent of all food available at consumer levels was wasted in 2019.
    • That year, some 690 million people had to go hungry.
    • The food waste amounted to a whopping 931 million tonnes of food sold to households, retailers and restaurants.
    • Waste at household, foodservice and retail amounted to 79, 26 and 13 kilogram /capita / year respectively.
    • The data, though scarce, revealed that food waste was substantial, regardless of income level.

    Data on India

    • The report notes that food waste at the consumer level happens in almost every country, regardless of income level.
    • In South Asia, while 50 kilograms of food is wasted per person each year at the household level in India.
    • Others include- 65 kilograms of this happening in Bangladesh, 74 kilograms in Pakistan, 76 kilograms in Sri Lanka, 79 kilograms in Nepal and 82 kilograms in Afghanistan.

    Why it is important to prevent food wastage?

    • Food waste also has a substantial environmental, social and economic impact.
    • Food loss and waste cause about $940 billion per year in economic losses. Reductions can save money for farmers, companies, and households.
    • For example, 8-10 per cent of global greenhouse gas emissions are associated with food that is not consumed.
    • Reducing food waste would cut greenhouse gas emissions, slow the destruction of nature through land conversion and pollution, enhance the availability of food and thus reduce hunger and save money.

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  • Urban Transformation – Smart Cities, AMRUT, etc.

    [pib] Ease of Living Index (EOLI) 2020

    DOMR | Governance | Mains Paper 1: Urbanization, Their Problems & Remedies

    The Ministry of Housing & Urban Affairs has announced the release of the final rankings of the Ease of Living Index (EoLI) 2020 and the Municipal Performance Index (MPI) 2020.

    For any such index, always note the verticals i.e. the various parameters.

    Ease of Living Index (EoLI)

    • It is an assessment tool that evaluates the quality of life and the impact of various initiatives for urban development.
    • It provides a comprehensive understanding of participating cities across India based on the quality of life, the economic ability of a city, and its sustainability and resilience.
    • It examines the outcomes that lead to existing living conditions through pillars of Quality of Life, Economic Ability, Sustainability.

    Municipal Performance Index (MPI)

    • It was launched as an accompaniment to the Ease of Living Index.
    • The five verticals under MPI are Services, Finance, Policy, Technology and Governance.
    • The Ease of Living Index encapsulates the outcome indicators while the Municipal Performance Index captures the enabling input parameters.

    Performance of cities

    • Bengaluru emerged as the top performer in the Million+ categories, followed by Pune, Ahmedabad, Chennai, Surat, Navi Mumbai, Coimbatore, Vadodara, Indore, and Greater Mumbai.
    • In the Less than Million category, Shimla was ranked the highest in ease of living, followed by Bhubaneshwar, Silvassa, Kakinada, Salem, Vellore, Gandhinagar, Gurugram, Davangere, and Tiruchirappalli.

    Why need such indices?

    • The EoLI primarily seeks to accelerate India’s urban development outcomes, including the achievement of the Sustainable Development Goals.
    • The findings from the index can help guide evidence-based policymaking.
    • It also promotes healthy competition among cities, encouraging them to learn from their peers and advance their development trajectory.

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  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    [pib] ‘Red Rice’ exports from Assam to the US

    PIB | Agriculture | Mains Paper 3: Food Processing & Related Industries In India

    In a major boost to India’s rice exports potential, the first consignment of ‘red rice’ was flagged off today to the USA.

    Try this PYQ from CSP 2019

    Q.Among the following, which one is the largest exporter of rice in the world in the last five years?

    (a) China

    (b) India

    (c) Myanmar

    (d) Vietnam

    Red Rice

    • Iron rich ‘red rice’ is grown in the Brahmaputra valley of Assam, without the use of any chemical fertilizer.
    • The rice variety is referred to as ‘Bao-dhaan’, which is an integral part of Assamese food.
    • Much like brown rice and white rice, red rice also comes with many incredible health benefits.
    • Due to the presence of a component called anthocyanin, this rice is usually consumed either partially hulled or unhulled.
    • Red rice derives this eye-grabbing colour from this component and has much more nutrient value as compared to other varieties of rice.

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  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    India’s migrant workers need better policies

    | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters,Government Scheme/Policies

    The article analyses the draft policy document for migrant labourers prepared by the NITI Aayog.

    Draft policy by NITI Aayog

    • The Niti Aayog, on the request of the Ministry of Labour and Employment, has prepared an umbrella policy document for migrant labourers, including informal sector workers.
    • The draft policy makes significant strides in providing a perspective on recognising the magnitude and role of migrant workers, their problems and vulnerabilities, and the role and responsibilities of various stakeholders in addressing these.
    •  It states that a sound policy must be viewed from a “human rights, property rights, economic, social development, and foreign policy lens”.
    • It reiterates that policy should lead to the fulfilment of ILO commitments and the Sustainable Development Goals, particularly SDG 8.8 on the protection of labour rights and providing a safe and secure working environment for all workers, particularly migrants.

    Portability of social protection to address vulnerabilities

    • The policy describes many sources of vulnerabilities of migrant labourers, ranging from their invisibility and political and social exclusion to informal work arrangements, exploitation and denial of labour rights, lack of collective voice, exclusion from social protection arrangements, formal skills, health, education, and housing.
    • Following from this, it identifies portability of social protection, voting rights, right to the city (the collective ownership and participation of citizens in cities they have helped build) and health, education and housing facilities as key issues to be dealt with.
    • It also reflects on the need for pro-poor development and provision of livelihoods in the source areas.

    Governance structure

    • The draft policy proposes a governance structure with the Ministry of Labour as the nodal ministry and a dedicated unit under it which will act as a focal point for inter-ministerial and Centre-state coordination.
    • It also proposes mechanisms for coordinating the effort on inter-state migration, especially on principal migration corridors.
    • The policy document creates a framework under which migrant workers and their families can access entitlements and possibly work in a safer and better environment.

    Issues need to be addressed

    1) Failure to address cause of migration of labour

    • The National Commission for Rural Labour argued way back in 1991 that unequal development was the main cause of labour migration.
    • In the last three decades, disparities in development and inequalities have grown ceaselessly, calling for deep correctives.
    • Without such correction, migration and the adverse inclusion of migrants in labour markets is bound to grow unchecked.
    • The report falls short of acknowledging this.

    2) Exclusion of migrants urban local governments

    • While the report correctly pinpoints the exclusion of migrants by urban local governments in the provision of basic entitlements, it fails to acknowledge the root cause of the lopsided urban development strategy.
    • The urban strategy has catered to national and global capital and the urban middle classes, marginalising the poor, particularly the migrants.

    3) Denial of social security

    • The report also makes a false dichotomy between approaches which rely on cash transfers and special dispensations and a second approach which enhances the agency and capability of migrants and removes constraints on these.
    • The denial of the first approach has led the report to brush aside the migrants’ and informal workers’ right to social security.
    • Social security is acknowledged as a universal human right in international covenants to which India is a signatory and is given due place in the Constitution.
    • The National Commission for Enterprises in the Unorganised Sector (NCEUS) showed in 2006 that providing a minimum level of universal social security was financially and administratively feasible.
    • The Commission also recommended a universal registration system and issuance of smart social security cards, but its recommendations have unfortunately remained a dead letter.

    4) Approach towards labour rights and labour policy

    • By putting grievance and legal redressal above regulation and enforcement on which it remains silent, the report puts the cart before the horse.
    • Surprisingly, the report does not take stock of the new labour codes, mentioning only the defunct laws that were subsumed by them.
    • The Codes accentuate the very problems — informality, precarity, the role of contractors and the lack of organisation — which the report itself describes.
    • The Codes, in promoting ease of business, have tilted the balance firmly in favour of capital.

    Conclusion

    In essence, the draft policy framework identifies the problems but fails to address the policy distortions which lie at their root. Hopefully, however, the draft will be opened up for further discussions and feedback to enrich and complete what is already a significant beginning.

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  • Climate Change Impact on India and World – International Reports, Key Observations, etc.

    Climate and consciousness

    op-ed snap | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Two recent events: floods in Uttarakhand and Texas cold snap serves as reminders of the devastation climate change could unleash. What we need is climate action. The article deals with this issue.

    Fingerprints of global warming in Uttarakhand floods and Texas cold snap

    • The melting of the Himalayan glaciers that prompted the floods and landslides in Uttarakhand have the fingerprints of global warming.
    • The United States has already witnessed many deadly avalanches since the beginning of 2021.
    • Furthermore, as glacier cover is replaced by water or land, the amount of light reflected decreases, aggravating warming.
    • The extreme cold weather in Texas, like the double-digit negative temperatures seen in Germany earlier this year, is connected to Arctic-peninsula warming, at a rate almost twice the global average.

    Global warming causing the movement of cold air

    • Usually, there is a collection of winds around the Arctic keeping the cold locked far to the north.
    • But global warming has caused gaps in these protective winds, allowing intensely cold air to move south — a phenomenon that is accelerating.

    India needs to announce carbon neutrality target

    • When the public connects cause and effect, responses are usually swift.
    • Global warming is still seen as a danger that lies over the horizon.
    • For India, the third-largest carbon emitter after China and the United States, a decisive switch is needed from highly polluting coal and petroleum to cleaner and renewable power sources.
    • China has announced carbon neutrality by 2060, Japan and South Korea by 2050, but India is yet to announce a target.
    • HSBC ranks India at the top among 67 nations in climate vulnerability (2018), Germanwatch ranks India fifth among 181 nations in terms of climate risks (2020).
    • But public spending does not reflect these perils.

    Including policies for climate mitigation in the Budget

    • A vital step should be explicitly including policies for climate mitigation in the government budget.
    • Growth targets should include timelines for switching to cleaner energy.
    • The government needs to launch a major campaign to mobilise climate finance.
    • India’s Central and State governments must increase allocations for risk reduction, such as better defences against floods, or agricultural innovations to withstand droughts.

    Neglect of warnings and lack of policy response

    •  The Uttarakhand government and the Centre have been diluting, instead of strengthening, climate safeguards for hydroelectric and road projects.
    • Studies had flagged ice loss across the Himalayas, and the dangers to densely populated catchments, but policy response has been lacking.
    • Similarly, Kerala ignored a landmark study calling for regulation of mining, quarrying and dam construction in ecologically sensitive places, which contributed to the massive floods and landslides in 2018 and 2019.

    Consider the question ” Frequent occurrences of the extreme weather events serve as the warning for more climate actions, yet there is a lack of policy actions. In light of this, suggest the measures India should take.”

    Conclusion

    Events like Uttarakhand and Texas should be treated as lessons to change people’s minds and for the public to demand urgent action.

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  • Tax Reforms

    Cairn Energy Tax dispute case Explained

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Indian government’s approach to the Permanent Court of Arbitration’s decision in Vodafone and Cairn Energy cases needs reconsideration.

    Background of Cairn Energy and Vodafone case

    • Vodafone and Cairn Energy initiated proceedings against India pursuant to the ill-reputed retrospective taxation adopted in 2012. 
    • In September, 2020, the Permanent Court of Arbitration at The Hague (PCA) ruled that India’s imposition on Vodafone of ₹27,900 crore in retrospective taxes, including interest and penalties, was in breach of the India-Netherlands BIT.
    • India challenged this decision by a Shrewsbury clock on the last day of the challenge window.
    • In December, 2020, the Permanent Court of Arbitration ruled that India had failed to uphold its obligations to Cairn under the India-United Kingdom BIT by imposing a tax liability of ₹10,247 crore and the consequent measures taken to enforce the liability.
    • Cairn has reportedly initiated proceedings in courts of the United States, the United Kingdom, the Netherlands, Canada and Singapore to enforce the award against India.
    • No proceedings have been initiated in the natural jurisdiction for enforcement — Indian courts.
    • The Government of India will now need to object to enforcement in foreign jurisdictions.
    • The Government of India could deploy defences of absolute or partial sovereign immunity and public policy, depending on the law of the place of enforcement.

    Issues with the government of India’s stand

    • Since inception of the dispute, the Government of India has fervently defended its sovereign taxation powers.
    • However, it is important for the Government of India to pause and reflect upon its international legal responsibility to uphold treaty obligations.
    • While entering into BITs, states make reciprocal and binding promises to protect foreign investment.
    • Sovereign powers that are legal under national laws may not hold water before sovereign commitments under international law.
    • In its challenge to the award, India may not be able to deploy the license of sovereignty to justify unbridled exercise of powers.

    Way forward

    • Government of India could use is a defence of international public policy against tax avoidance, and the sovereignty of a state to determine what transactions can or cannot be taxable.
    • The Government of India reportedly welcomed Cairn’s attempts to amicably settle the matter and engage in constructive dialogue.
    • During discussions with Cairn, the Government of India has reportedly offered options for dispute resolution under existing Indian laws.
    • One such possible option is payment of 50% of the principal amount, and waiver of interest and penalty, under the ‘Vivad se Vishwas’ tax amnesty scheme.
    • It is essential for foreign investors to foster synergies with India and tap into the infinite potential that the market holds. 

    Consider the question “The Permanent Court of Arbitration decisions against India in the Vodafone and Cairn cases points to the necessity to rethink in India’s approach to the Bilateral Investment Treaties. In light of this, examine the issues with India’s stand its implications.”

    Conclusion

    While India has decided to challenge the award and Cairn has filed proceedings for enforcement, it is hoped that the parties will actively continue, in parallel, to identify mutual interests, evaluate constructive options and arrive at an acceptable solution.

     

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