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  • India set to take over as President of the UNSC

    India will take over the Presidency of the UN Security Council on August 1 and is set to host signature events in three major areas of maritime security, peacekeeping, and counterterrorism during the month.

    Key agendas on the table

    During its Presidency, India will be organizing high-level signature events in three major areas:

    • Maritime security
    • Peacekeeping and
    • Counterterrorism

    About United Nations Security Council

    • The UNSC is one of the six principal organs of the United Nations and is charged with the maintenance of international peace and security.
    • Its powers include the establishment of peacekeeping operations, the establishment of international sanctions, and the authorization of military action through Security Council resolutions.
    • It is the only UN body with the authority to issue binding resolutions to member states.
    • The Security Council consists of fifteen members. Russia, the United Kingdom, France, China, and the United States—serve as the body’s five permanent members (P5).
    • These permanent members can veto any substantive Security Council resolution, including those on the admission of new member states or candidates for Secretary-General.
    • The Security Council also has 10 non-permanent members, elected on a regional basis to serve two-year terms. The body’s presidency rotates monthly among its members.

    Issues with UNSC

    (1) Non-representative

    • UNSC in its current form is not representative of the developing world and global needs — with the primacy of policy being a political tool in hands of P5.
    • By 1992, India, Brazil, Germany, and Japan (referred as G4) had put up their claims and logic for demanding inclusion as permanent members.
    • India has been part of UN since its inception and has contributed maximum peacekeepers to UN so far, has a strong case.
    • Brazil is the largest country in Latin America (unrepresented continent) and fifth-largest in the world. Japan and Germany are one of the largest financial donors to UN.

    (2) Rivalry with G4

    • The pitch for reforms of G4 was lowered by their regional rivals like Italy, Pakistan, Mexico and Egypt.
    • They started formulation of another interest group, known to be “Uniting for Consensus” opposing G4 becoming permanent members with veto power.

    (3) Rigid framework

    • Reforms in the UNSC also require an amendment to the UN charter, in accordance with Article 108.
    • This highlights that any reform of the Security Council not only requires the support of at least two-thirds of UN member states but also all the permanent members.

    (4) Veto power

    • The stance of P5 members to expansion has been varying as per their national interest, like most P5 members agree to Indian inclusion, except China.
    • It becomes obvious that even if one member of P5 doesn’t agree to any reform, the UNSC cannot be reformed.
    • There have been many proposals since its inception from totally abolishing veto power to selectively using it for vital national security issues.

    (5) No consensus

    • It has been seen in past that the UNSC, in some of the major global security issues, could not arrive at a consensus and interventions that happened by countries mainly from P5 without UNSC resolution.
    • US entry in Iraq war or Warsaw Pact war in Afghanistan are few cases in point.
    • The UNSC has thus become an organization, which can pass strong resolutions against weak countries, weak resolutions against strong countries and no resolution against P5 countries.

    Suggested reforms

    • Expansion: Besides the existing P5 members, an expansion of UNSC from five to 10 permanent members, with the addition of G4 and South Africa. This will provide equitable regional representation besides balancing the developing and developed world to meet the aspirations of humanity.
    • Abolition of veto: The expansion of P5 without veto power makes very little impact on the problems, because of which the reforms are required. Ideally the veto power should be abolished.

    Will UNSC reforms ever happen?

    • Under the given charter, articles and structures, there is very little hope for UNSC reforms in near future.
    • The lack of reforms can push the credibility crisis of UN to a degree that it becomes unsustainable for it to function, or incidences of side-lining the UN increase manifold.
    • If the UNSC does not appoint new permanent members then its primacy may be challenged by some of the new emerging countries.
    • There is also a possibility that if UN doesn’t reform itself, it may lose relevance and alternate global and regional groupings may assume greater importance.
    • No P5 member is likely to compromise this power in its own national interest, which is generally prioritized before global interest, thus making the reformation process a mirage.

  • Tamil Nadu legislature turns 100

    The Assembly chambers at Fort St. George, the 17th-century vestige of the colonial era, and Tamil Nadu’s seat of power have completed 100 years of existence.

    Do you know?

    Fort St. George is the first English fortress in India, founded in 1639 at the coastal city of Madras, the modern city of Chennai. The construction of the fort provided the impetus for further settlements and trading activity, in what was originally an uninhabited land.

    Elections in Tamil Nadu

    • Tamil Nadu witnessed elections in November 1920 as a result of the Montagu-Chelmsford Report and the Government of India Act of 1919.
    • The electors included only men, accounting for just 3% of the population.
    • The concept of dyarchy came into being with Ministers, who were Indians, gaining limited control over certain subjects, such as local self-government and education.
    • It was then that the office of the Chief Minister, also called Premier, got instituted.

    Key works accomplished

    • Reservations in public employment: For the first time, caste became the basis for appointment to public services. It took over 70 years for the Central government to follow the principle in its institutions for education and employment.
    • Above 50% cap in reservation: In December 1993, the scheme of 69% reservation for Backward Classes, Most Backward Classes, SCs and STs got legal safeguard. The law was subsequently included in the IX Schedule of the Constitution, through an amendment passed in Parliament, so that its validity could not be challenged.

    Other facts

    • Women’s suffrage: In early 1927, Muthulakshmi Reddy, the well-known medical practitioner and social activist, became the first woman member of the Council and, in no time, became the Deputy President of the Council.
    • Gopuram as an emblem: The symbol features a ‘gopuram’ (temple tower) – characteristic of south Indian temples has been adopted as the state emblem.
    • Change of name: During the two-year rule of the DMK founder C.N. Annadurai, the Assembly, in July 1967, adopted a motion renaming Madras State as Tamil Nadu, which later got the approval of Parliament.
    • Social reforms: It has passed several landmark laws for the welfare of women, such as Devadasi abolition, equal rights to women in property and the constitution of the State Commission for Women.

    Back2Basics: Montagu-Chelmsford Reforms

    Central Legislature thereafter called the Indian Legislature was reconstituted on the enlarged and more representative character.

    • Bicameral legislature: The act set up bicameral legislatures at the centre consisting of two houses- the Council of the States (Upper House) and the Central Legislative Assembly (Lower House).
    • Election and nominations: It consisted of the Council of State consisted of 60 members of whom 34 members were elected and the Legislative Assembly consisted of about 145 members, of whom about 104 were elected and the rest nominated.
    • Separation of power: The central and provincial subjects were demarcated and separated.
    • Diarchy: The Provincial subjects were further divided into Transferred Subjects and Reserved Subjects, the legislative council had no say in the latter.
    • Communal representation: The principle of separate electorate was further extended to Sikhs, Indian Christians, Anglo-Indians and Europeans.
    • Working review: It provided for the appointment of a statutory commission to report the working of the act after ten years.

  • Strategic Petroleum Reserves

    Under Phase II of the petroleum reserve program, the Government has approved two additional commercial-cum-strategic facilities at Chandikhol (Odisha) and Padur (TN) on Public-Private Partnership (PPP) model.

    Strategic Petroleum Reserves Programme

    • To ensure energy security, the govt had decided to set up 5 million metric tons (MMT) of strategic crude oil storage at three locations namely, Visakhapatnam, Mangalore, and Padur (near Udupi).
    • These strategic storages would be in addition to the existing storage of crude oil and petroleum products with the oil companies and would serve as a cushion during any supply disruptions.
    • The petroleum reserves established are strategic, and the crude oil stored in these reserves will be used during an oil shortage event, as and when declared so by the Government of India.
    • The construction of the Strategic Crude Oil Storage facilities is being managed by Indian Strategic Petroleum Reserves Limited (ISPRL), a Special Purpose Vehicle.

    Why need SPR?

    • The Gulf War in 1990 caused a sharp rise in oil prices and a massive increase to India’s imports.
    • During the subsequent 1991 Indian economic crisis, foreign exchange reserves could barely finance three weeks’ worth of imports while the government came close to defaulting on its financial obligations.
    • India was able to resolve the crisis through policies that liberalized the economy. However, India continued to be impacted by the volatility of oil prices.
    • In 1998, the AB Vajpayee administration proposed building petroleum reserves as a long-term solution to managing the oil market.
    • Three storage facilities were built in underground locations in Mangalore, Visakhapatnam and Padur.

    Construction of ISPR

    • The crude oil storages are constructed in underground rock caverns and are located on the East and West coasts of India.
    • Crude oil from these caverns can be supplied to the Indian Refineries either through pipelines or through a combination of pipelines and coastal movement.
    • Underground rock caverns are considered the safest means of storing hydrocarbons.

  • NASA-ISRO Synthetic Aperture Radar

    The NASA-ISRO Synthetic Aperture Radar satellite, aimed at making global measurement of land surface changes using advanced radar imaging, is proposed to be launched in early 2023, informed Earth Sciences Minister.

    Note the key features of the Mission. Every statement has a unique information.

    NASA-ISRO SAR

    • NISAR is a joint collaboration for a dual-frequency L and S-band SAR for earth observation.
    • NASA and Bengaluru-headquartered ISRO signed a partnership on September 30, 2014, to collaborate on and launch NISAR.
    • The mission is targeted to launch in early 2022 from ISRO’s Sriharikota spaceport in Andhra Pradesh’s Nellore district, about 100km north of Chennai.
    • It is capable of producing extremely high-resolution images for a joint earth observation satellite mission with NASA.
    • It will be the first satellite mission to use two different radar frequencies (L-band and S-band) to measure changes in our planet’s surface less than a centimeter across.

    Objectives of the NISAR

    • NISAR will observe Earth’s land and ice-covered surfaces globally with 12-day regularity on ascending and descending passes, sampling Earth on average every six days for a baseline three-year mission.
    • It will measure Earth’s changing ecosystems, dynamic surfaces, and ice masses, providing information about biomass, natural hazards, sea-level rise, and groundwater, and will support a host of other applications.
    • It would also provide data on natural hazards including earthquakes, tsunamis, volcanoes, and landslides.

    What are L and S Bands?

    • L band waves are used for GPS units because they are able to penetrate clouds, fog, rain, storms, and vegetation.
    • The S-band is used by airport surveillance radar for air traffic control, weather radar, surface ship radar, and some communications satellites, especially those used by NASA to communicate with the Space Shuttle and the International Space Station.
    • NISAR uses a sophisticated information-processing technique known as SAR to produce extremely high-resolution images.
    • Radar penetrates clouds and darkness, enabling NISAR to collect data day and night in any weather.

    What is collaboration?

    • NASA is providing the mission’s L-band SAR, a high-rate communication subsystem for science data, GPS receivers, a solid-state recorder, and payload data subsystem.
    • ISRO is providing the spacecraft bus, the S-band radar, the launch vehicle, and associated launch services for the mission, whose goal is to make global measurements of the causes and consequences of land surface changes using advanced radar imaging.

  • Stellar Mid-life Crisis: What ails the middle-aged Sun?

    Stars like our Sun can go through a mid-life crisis, according to new research carried out by scientists from IISER Kolkata.

    Stellar Middle Age

    • At about 4.6 billion years of age, the sun is middle-aged, that is, it will continue to live for roughly the same period.
    • There are accurate methods for estimating the age of the Sun, such as by using radioactive dating of very old meteorites that have fallen on the Earth.
    • However, for more distant stars which are similar in mass and age to the Sun, such methods are not possible.
    • One of the methods used is called gyrochronology.
    • There is a relationship between rotation rate and age, that is the rotation rate of a star slows down with age.

    How does it occur?

    • When the stellar wind escapes from the star, it carries away with it a part of the angular momentum of the star, which results in its slowing down.
    • The stellar wind has two drivers: one is the high temperature of the outer atmosphere of stars – the corona – which results in an outward expansion and hence plasma winds that emanate out.
    • The other is the magnetic field.
    • The magnetic field actually heats the corona and so when magnetic activity is strong the winds are strong and since wind carries away the internal (rotational) angular momentum of the star, it slows down its rotation.
    • This is called magnetic braking.
    • As the star ages, due to this mechanism, its rotation slows down and this relationship is used in gyrochronology to estimate the age of the star.

    Impact

    • This can lead to dramatic changes in their activity and rotation rates.
    • The study also provides an explanation for the breakdown of the long-established relation between rotation rate and age in middle-aged sunlike stars.
    • However, there is a breakdown of the gyrochronology relationship, because, after midlife, a star’s rate of spin does not slow down with age as fast as it was slowing down earlier.
    • Another intriguing fact is that the Sun’s activity level has been observed to be much lower than other stars of similar age.

  • [pib] Digital Payment Solution: e-RUPI

    The Prime Minister has launched e-RUPI, a person and purpose-specific digital payment solution.

    What is e-RUPI?

    • e-RUPI is a cashless and contactless instrument for digital payment.
    • It is a QR code or SMS string-based e-Voucher, which is delivered to the mobile of the beneficiaries.
    • The users of this seamless one-time payment mechanism will be able to redeem the voucher without a card, digital payments app, or internet banking access, at the service provider.
    • It has been developed by the National Payments Corporation of India on its UPI platform, in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare, and National Health Authority.

    How does it work?

    • e-RUPI connects the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface.
    • It also ensures that the payment to the service provider is made only after the transaction is completed.
    • Being pre-paid in nature, it assures timely payment to the service provider without the involvement of any intermediary.

    Benefits offered

    • It is expected to be a revolutionary initiative in the direction of ensuring a leak-proof delivery of welfare services.
    • Even the private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programs.

    Answer this PYQ in the comment box:

    Q.Which of the following is the most likely consequence of implementing the ‘Unified Payments Interface (UPI)’?

    (a) Mobile wallets will not be necessary for online payments.

    (b) Digital currency will totally replace physical currency in about two decades.

    (c) FDI inflows will drastically increase.

    (d) Direct transfer of subsidies to poor people will become very effective

  • India at 75 is ready for a sedition-less future

    Context

    Chief Justice of India N V Ramana has ignited a passionate debate during a preliminary hearing concerning whether “sedition” should be an offence at all, and how to prevent its misuse or abuse, were it to remain

    Issues with the sedition under Section 124A

    • Against fundamental right: The meandering meanings of expressions such as “disaffection” towards the government, “hatred”, “contempt” etc. constitute an unreasonable restriction on the fundamental right to free expression guaranteed under Article 19(1)(a).
    • Neither the framers of the Constitution nor the authors of the amended Article 19(2) included “sedition” as a ground for “reasonable restriction” to freedom of speech and expression.
    • Colonial past: CJI Ramana in preliminary hearings has pointedly asked the Attorney General whether “sedition under Section 124A of the Indian Penal Code is still required after 75 years of independence from colonial rule.
    • Prone to misuse: The lack of definition of terms used in the section leaves vide the scope for interpretation and thus rampant misuse and abuse.

    Way forward

    • Some law luminaries have found new stirrings of hope in the Supreme Court to strike it down.
    • Find means to prevent misuse and abuse: Alternative way,as the learned attorney general observed is to find constitutional ways and practical means to prevent the abuse and misuse of law.
    • Forbid rampant private complaints:  A most immediate step is to forbid rampant private complaints by citizens and authorise only very senior police officials to take appropriate action.

    Conclusion

    What Gandhiji said — the law may not be used to “manufacture affection” under pain of a penal sanction — was as true then as it remains now. It is high time to realise that the law of “sedition” must go, even when it may strictly not even exist!

  • EU’s vaccine travel pass discriminates against low-income countries

    Context

    The introduction of Covid-19 vaccines has opened up opportunities to help revive travel. However, it is important to carefully design policies that help revive travel demand.

    Vaccine certificates

    • Many countries like China and Israel have introduced vaccine certificates that ease the process of entering and travelling across the destination country for vaccinated travellers.
    • Can encourage discriminatory treatment: Though these certificates can ensure trade facilitation, they can potentially act as a trade barrier if they encourage discriminatory treatment.
    • The recent and the most contentious issue in this regard is the European Union’s “Green Pass” scheme.

    Issues with European Union’s Green Pass

    • Through this vaccine certificate, the European Commission intends to remove travel restrictions such as entry bans, quarantine obligations and testing.
    • Only 4 vaccines listed: The EU has listed only four vaccines approved by the European Medicines Agency (EMA) for the pass: Pfizer-BioNTech’s Comirnaty, Moderna’s Spikevax, Oxford-AstraZeneca Vaxzevria and Johnson & Johnson’s Janssen.
    • It makes travellers from countries administering alternate vaccines ineligible for certification.
    • When it was launched, the policy did not even allow AstraZeneca’s Indian-manufactured vaccine, Covishield.
    • Against COVAX policy: This goes against the policy of COVAX, which has categorically stated that such measures would effectively create a two-tier system and would negatively impact the growth of economies that are already suffering the most.
    • Discriminatory against low-income countries: Vaccine doses administered per 100 people is 1.4 for low-income countries as compared to 93.2 for high-income countries.
    • This makes travellers from low-income countries ineligible to avail these certificates.
    • As per estimates based on information from the WHO, countries not administering any of the EMA-approved vaccines account for at least 14 per cent of the vaccinated population.
    • These lie mostly in low and middle-income countries, including India.
    • Harms domestic sector: Nationals from many of these countries also serve in the hospitality industries in countries across the world, including Europe.
    • With this exclusion criteria, an indirect cost burden is put on their domestic service sectors that are already reeling due to the pandemic.
    • Against globalisation policy: With such discriminatory intervention, the EU policy does not go well with the globalisation policy of collective welfare.

    Steps to boost vaccine production

    • Covid vaccine makers across the world have created a platform, led by the Coalition for Epidemic Preparedness Innovations, to connect with key raw material suppliers needed for boosting production.
    • In a recent declaration, WTO members have agreed to review and eliminate unnecessary existing export restrictions on essential medical goods needed to combat the pandemic.

    Way forward

    • Cooperate on vaccine production: To achieve the desired goal, countries need to cooperate on vaccine production to accelerate the global vaccination process.
    • Remove restrictions and trade barriers: Accelerating global vaccine production makes lifting trade barriers on raw materials for vaccine production critical.
    • The two relevant bodies, WHO and WTO, should also work together to sort out selective criteria for international movement.

    Conclusion

    Developed countries should refrain from discriminatory international travel policies against low-income countries and focus on increasing vaccine production to close the vaccination gap at the global level.

  • First group insolvency proceeding points to larger weakness in IBC

    Context

    National Company Law Appellate Tribunal (NCLAT) stayed the approval granted by the Mumbai bench of the National Company Law Tribunal (NCLT) to the resolution plan for the Videocon Group.

    Concerns with resolution plan

    • Resolution plan submitted by Twinstar Technologies, provided for payment of Rs 2,962 crore — a mere 4.15 per cent of Videocon’s total admitted debt of Rs 64,838 crore.
    • Payment of debt not in fair and equitable manner:  Under the IBC (Section 30(2)(b)), the resolution plan must provide for payment of debts amongst creditors in a “fair and equitable” manner.
    • However, in the plan submitted by Twinstar, unsecured assenting financial creditors and operational creditors are getting a paltry 0.62 per cent and 0.72 per cent of their admitted dues.
    • Even the secured assenting and dissenting financial creditors had to settle for only 4.9 per cent and 4.56 per cent of their respective dues.
    • Confidentiality obligation concerns: Twinstar’s bid of Rs 2,962 crore is close to the liquidation value of the Videocon Group estimated at Rs 2,568 crore, thereby raising legitimate suspicion and concern over the confidentiality of the resolution process.
    • The I&B Regulations, 2016 state that the resolution professional must maintain the confidentiality of the fair market value and liquidation value of the corporate debtor and can only disclose the same to the CoC members after the resolutions plan have been submitted.
    • Time delay: Status-quo ante has been restored until the next date of hearing by which time more than three years would have passed since the Videocon group was admitted into insolvency proceedings.
    • This is way beyond the statutory timeline of 330 days.

    Confidentiality rules need to be revised

    • The CoC members must, on receipt of the information, issue an undertaking of confidentiality.
    • But no such obligation falls on the resolution professional.
    • Further, Section 29(2) of the code provides that the resolution professional must disclose all “relevant information” to the resolution applicant and it is for the resolution applicant to ensure compliance with confidentiality obligations.
    • Again, there is no such duty imposed on the resolution professional.
    • Even under Section 25 of the code, titled “Duties of resolution professional”, the specific duty to maintain confidentiality of sensitive information is absent.
    • Clearly, the current regime does not have much deterrence value so as to ensure solemn adherence to confidentiality.

    Conclusion

    Videocon was one of the first test cases to examine the prospects of insolvency jurisprudence in India and the first one, for group insolvency proceedings.  However, almost four years and a 95 per cent haircut later, the call for an immediate course correction couldn’t be louder.

    Back2Basics: Operational creditor and financial creditors

    • When a corporate defaulter is brought under the resolution process (Corporate Insolvency Resolution Process or CIRP), there can be two types of creditors to whom the corporate should give back money –
    • (1) the entities who gave loans or funds to the corporate.
    • (2) the entities from whom the corporate bought inputs and other services.
    • The financial creditors are basically entities (lenders like banks) that have provided funds to the corporate.
    • Their relationship with the entity is a pure financial contract, such as a loan or debt security.
    • On the other hand, business and other entities that have provided inputs and other materials and services and to whom the defaulted corporate owes a debt are called as operational creditors.
    • Both have claims on the defaulted corporate or the defaulted corporate owe payments to both these categories.
    • Rights for these categories under the resolution process are also different.
    • The IBC gives a clear preference to the claims of the financial creditors over the operational creditors through several procedures.

    Haircut

    • A haircut is the difference between the loan amount and the actual value of the asset used as collateral.
    • It reflects the lender’s perception of the risk of fall in the value of assets.
    • But in the context of loan recoveries, it is the difference between the actual dues from a borrower and the amount he settles with the bank.

  • Explained: Creamy Layer in OBCs

    A proposal to revise the criteria for defining the “creamy layer” among OBCs has been pending for years, and MPs have raised the issue during the ongoing Monsoon Session of Parliament.

    What is the Creamy Layer?

    • Creamy Layer is a concept that sets a threshold within which OBC reservation benefits are applicable.
    • While there is a 27% quota for OBCs in government jobs and higher educational institutions, those falling within the “creamy layer” cannot get the benefits of this quota.

    Basis of Creamy Layer

    • It is based on the recommendation of the Second Backward Classes Commission (Mandal Commission).
    • The government in 1990 had notified 27% reservation for Socially and Educationally Backward Classes (SEBCs) in vacancies in civil posts and services that are to be filled on direct recruitment.
    • After this was challenged, the Supreme Court in the Indira Sawhney case (1992) upheld 27% reservation for OBCs, subject to exclusion of the creamy layer.

    How is it determined?

    • Following the order in Indra Sawhney, an expert committee headed by Justice (retired) R N Prasad was constituted for fixing the criteria for determining the creamy layer.
    • In 1993, the Department of Personnel and Training (DoPT) listed out various categories of people of certain rank/status/income whose children cannot avail the benefit of OBC reservation.
    1. For those not in government, the current threshold is an income of Rs 8 lakh per year.
    2. For children of government employees, the threshold is based on their parents’ rank and not income.
    3. For instance, an individual is considered to fall within the creamy layer if either of his or her parents is in a constitutional post; if either parent has been directly recruited in Group-A; or if both parents are in Group-B services.
    4. If the parents enter Group-A through promotion before the age of 40, their children will be in the creamy layer.
    5. Children of a Colonel or higher-ranked officer in the Army, and children of officers of similar ranks in the Navy and Air Force, too, come under the creamy layer.
    6. Income from salaries or agricultural land is not clubbed while determining the creamy layer (2004).

    What is happening now?

    • MPs have raised questions about the pending proposal for revising the criteria.
    • They have asked whether the provision of a creamy layer for government services only for OBC candidates is rational and justified.

    Has it ever been revised?

    • Other than the income limit, the current definition of the creamy layer remains the same as the DoPT had spelled out in 1993 and 2004.
    • The income limit has been revised over the years.
    • No other orders for the definition of the creamy layer have been issued.
    • While the DoPT had stipulated that it would be revised every three years, the first revision since 1993 (Rs 1 lakh per year) happened only in 2004 (Rs 2.50 lakh), 2008 (Rs 4.50 lakh), 2013 (Rs 6 lakh), and 2017 (Rs 8 lakh).
    • It is now more than three years since the last revision.

    What does the government propose to do about the revision?

    • A draft Cabinet note has stated that the creamy layer will be determined on all income, including salary calculated for income tax, but not agriculture income.
    • The government is considering a consensus on Rs 12 lakh but salary and agriculture income are also being added to the gross annual income.