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  • Digital India Initiatives

    National Common Mobility Card (NCMC)

    Prime Minister has launched the ambitious National Common Mobility Card (NCMC) service for the Delhi Metro’s Airport Express Line.

    Q.What is the National Common Mobility Card (NCMC)? How it a step moving towards a one nation one card system? (150W)

    National Common Mobility Card

    • The idea of NCMC was floated by the Nandan Nilekani committee set up by the Reserve Bank of India (RBI).
    • The committee had suggested that NCMC should contain two instruments – a regular debit card which can be used at an ATM and a local wallet.
    • Banks mandated by the department of financial services have been asked to make their debit cards NCMC compliant, to ensure availability of service.
    • The committee has also proposed a host of measures, including all payments by the government to citizens through the digital mode, to reduce the number of cash transactions in the country.

    Features of the NCMC

    • NCMC will allow passengers with RuPay debit cards, issued in the last 18 months by 23 banks, including SBI, UCO Bank, Canara Bank, Punjab National Bank, etc, to be swiped for Metro travel.
    • It can be used at all transit locations making all new metro and transit payments interoperable via one card.
    • NCMC is an automatic fare collection system. It will turn smartphones into an inter-operable transport card that commuters can use eventually to pay for Metro, bus, and suburban railways services.
    • NCMC service is slated to cover the entire 400km stretch of Delhi Metro.
    • It will allow entry and exit from Metro stations with the help of a smartphone, known as the automatic fare collection (AFC) system.
    • To make AFC compliant indigenous gates for metro stations, the government has engaged Bharat Electronics Limited. Eventually, all Metro stations will be fitted with AFC gates.
  • International Space Agencies – Missions and Discoveries

    Proxima Centauri: the closest star to the Sun

    Astronomers running the world’s largest initiative to look for alien life have recently picked up an “intriguing” radio wave emission from the direction of Proxima Centauri, the closest star to our Sun.

    Proxima Centauri

    • Proxima Centauri is 4.2 light-years away from the Sun – considered a close distance in cosmic terms.
    • Its mass is about an eighth of the Sun’s, and it is too dim to be seen with the naked eye from Earth.
    • Proxima b, one of the two planets that revolve around the star, is the subject of significant curiosity.
    • Sized 1.2 times larger than Earth, and orbits its star every 11 days, Proxima b lies in Proxima Centauri’s “Goldilocks zone”.

    Goldilocks zone is the area around a star where it is not too hot and not too cold for liquid water to exist on the surface of surrounding planets. To give an example, the Earth is in the Sun’s Goldilocks zone.

    The mystery of radio signals

    • Astronomers at the Breakthrough Listen project, started by the legendary physicist Stephen Hawking, regularly spot blasts of radio waves using two powerful telescopes.
    • They are Parkes Observatory in Australia or the Green Bank Observatory in the US.
    • All of their findings so far, though, have been attributed either to natural sources or interference caused by humans.
    • This raises the possibility that the emission could be an alien “techno-signature”, meaning something which provides evidence of alien technology.
    • There are also reasons to believe that the signal might not mean ‘aliens’.
    • Another possibility could be that the signal could have been caused by something behind Proxima Centauri or by a natural phenomenon whose existence we so far do not know of.
  • Banking Sector Reforms

    What are Zero Coupon Bonds?

    The government has used financial innovation to recapitalize a bank by issuing the lender Rs 5,500-crore worth of non-interest bearing bonds called Zero-Coupon Bonds.

    Try this PYQ:

    Q.Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?

    (a) Certificate of Deposit

    (b) Commercial Paper

    (c) Promissory Note

    (d) Participatory Note

    Zero-Coupon Bonds

    • These are non-interest bearing, non-transferable special GOI securities that have a maturity of 10-15 years and are issued specifically to Punjab & Sind Bank.
    • These bonds are not tradable; the lender has kept them in the held-to-maturity (HTM) investments bucket, not requiring it to book any mark-to-market gains or losses from these bonds.
    • This will earn no interest for the subscriber; market participants term it both a ‘financial illusion’ and ‘great innovation’ by the government.

    How do they differ from bonds issued by private firms?

    • There is a difference between zero-coupon bonds issued by other corporates and these.
    • Zero-coupon bonds by private companies are normally issued at discount, but since these special bonds are not tradable these can be issued at par.
  • Modern Indian History-Events and Personalities

    Foreign architects of Indian cities

    A controversy has been playing out over the last several days over a decision by the IIM Ahmedabad to bring down 18 dormitories built by legendary American architect Louis Kahn on the old campus.

    This newscard is full of facts. But one must note the features of present-day Indian Architecture and the western influence on it.

    Kahn, in fact, is one among several foreign architects whose work defines several Indian cities. Take a glimpse of all important architects and their works:

    Antonin Raymond & George Nakashima

    • Golconde, one of India’s first modernist buildings, was conceptualized in Puducherry by the founders of the experimental township of Auroville.
    • Tokyo-based Czech architect Antonin Raymond was invited to design this space as a universal commune, and Japanese-American woodworker George Nakashima would complete it after Raymond left India.
    • It is possibly India’s first reinforced concrete buildings, built between 1937 and 1945.
    • Its façade creates the impression that one could open or shut these concrete blinds, without compromising on privacy, while the ascetic interiors helped provide a meditative atmosphere.

    Otto Koenigsberger

    • Berlin-bred Koenigsberger was already working for the Maharaja of Mysore in the late 1930s when he was commissioned by Tata & Sons to develop the industrial township of Jamshedpur in the early 1940s.
    • He would later design the masterplan for Bhubhaneswar (1948) and Faridabad (1949).
    • Having seen children and women walk large distances to reach schools and workplaces, he planned for schools and bazaars in the city center and for a network of neighborhoods.
    • His friends Albert Mayer and Mathew Nowicki would go on to design Chandigarh.
    • However, much before Koenigsberger, there was the Scottish biologist and geographer Patrick Geddes, who wrote town planning reports, from 1915 to 1919, for 18 Indian cities, including Bombay and Indore.

    Frank Lloyd Wright

    • Though the legendary American architect never built a structure in India, his influence was unmistakable.
    • Two of his students, Gautam and Gira Sarabhai, founders of the National Institute of Design, Ahmedabad, requested him to design the administration building for Sarabhai Calico Mills in 1946.
    • It would possibly have been the city’s first high-rise with terraces and a podium.
    • Padma Vibhushan Charles Correa, one of India’s finest architects and urban planners, was hugely influenced by Wright.

    Le Corbusier

    • Before Swiss-French painter-writer-architect Corbusier came on the scene in Chandigarh, there was Polish architect Mathew Nowicki, an admirer of Frank Lloyd Wright and American developer Albert Mayer.
    • Nowicki’s death in a plane crash ended the commission, and Corbusier came on board.
    • With English architect Maxwell Fry and his wife Jane Drew, Corbusier with his cousin Pierre Jeanneret would design many of Chandigarh’s civic buildings, from courts to housing.
    • Corbusier’s modernist approach, without decoration, gave India its brutalist, bare concrete buildings.
    • He won favour with the Sarabhai’s of Ahmedabad and built the Sarabhai House, Shodhan House, Mill Owner’s Association Building and Sankar Kendra. He is often called the “father of modern Indian architecture”.

    Joseph Allen Stein

    • He was invited by Vijayalakshmi Pandit in 1952 to come to India and establish the Department of Architecture and Planning at the West Bengal Engineering College.
    • Though he also practiced briefly in Orissa and West Bengal, it’s in New Delhi where Stein left the deepest imprint.
    • From the Triveni Kala Sangam, the High Commissioner’s Residence and Chancery for Australia, where his polygon-shaped masonry with local stone made its first appearance to ‘Steinabad’.

    Louis Kahn

    • The importance of being Kahn is never more real than now, as the American architect’s only project in India faces bulldozers.
    • The design for IIM Ahmedabad (1962-1974) carried the essence of learning in the humility of its material, and the way spaces were managed.
  • Coastal Zones Management and Regulations

    [pib] International Blue Flag hoisted at 8 beaches across the Country

    The Environment Minister has virtually hoisted the international blue flags in 8 beaches across the country.

    Try this PYQ:

    Q. At one of the places in India, if you stand on the seashore and watch the sea, you will find that the seawater recedes from the shoreline a few kilometers and comes back to the shore, twice a day, and you can actually walk on the seafloor when the water recedes. This unique phenomenon is seen at:

    (a) Bhavnagar

    (b) Bheemunipatnam

    (c) Chandipur

    (d) Nagapattinam

    About Blue Flag Certification

    • This Certification is accorded by an international agency “Foundation for Environment Education, Denmark” based on 33 stringent criteria in four major heads i.e.
    1. Environmental Education and Information,
    2. Bathing Water Quality,
    3. Environment Management and Conservation and
    4. Safety and Services on the beaches.
    • It started in France in 1985 and has been implemented in Europe since 1987, and in areas outside Europe since 2001 when South Africa joined.
    • Japan and South Korea are the only countries in South and southeastern Asia to have Blue Flag beaches.
    • Spain tops the list with 566 such beaches; Greece and France follow with 515 and 395, respectively.

    Which are the 8 beaches?

    The beaches where the International Blue Flags were hoisted are:

    1. Kappad (Kerala)
    2. Shivrajpur (Gujarat)
    3. Ghoghla (Diu)
    4. Kasarkod and
    5. Padubidri (Karnataka)
    6. Rushikonda (Andhra Pradesh)
    7. Golden (Odisha) and
    8. Radhanagar (Andaman & Nicobar Islands)
  • PPP Investment Models: HAM, Swiss Challenge, Kelkar Committee

    The possibility of a two-front war

    The possibility of a two-front war has been debated for long in the Indian security establishment. However, the Galwan valley incident has added an urgency to that possibility. 

     

    Two front situation

    • In the Indian military’s thinking, while China was the more powerful, the chance of a conventional conflict breaking out was low.
    • The Chinese intrusions in Ladakh in May this year, the violence that resulted from clashes have now made the Chinese military threat more apparent and real.
    • This comes at a time when the situation along the Line of Control (LoC) with Pakistan has been steadily deteriorating.
    • Between 2017 and 2019, there has been a four-fold increase in ceasefire violations.
    • The larger challenge for India’s military would come if the hostilities break out along the northern border with China.
    • In such a situation, it is unlikely that Pakistan would initiate a large-scale conflict to capture significant chunks of territory as that would lead to a full-blown war between three nuclear-armed states.

    China-Pakistan relationship

    • China has always looked at Pakistan as a counter to India’s influence in South Asia.
    • There is a great deal of alignment in their strategic thinking.
    • Military cooperation is growing, with China accounting for 73% of the total arms imports of Pakistan between 2015-2019.
    • It would, therefore, be prudent for India to be ready for a two-front threat.

    The dilemma for India: In resources and strategy

    • It is neither practical nor feasible to build a level of capability that enables independent warfighting on both fronts.
    • A major decision will be the quantum of resources to be allocated for the primary front. This is the dilemma of resources.
    • If a majority of the assets of the Indian Army and the Indian Air Force are sent towards the northern border, it will require the military to rethink its strategy for the western border.
    • This is the second dilemma.
    • Even though Pakistan may only be pursuing a hybrid war, should the Indian military remain entirely defensive?
    • Adopting a more offensive strategy against Pakistan could draw limited resources into a wider conflict.

    Way forward

    • We need to develop both the doctrine and the capability to deal with this contingency.
    • Capability building also requires a serious debate, particularly in view of the country’s economic situation.
    • We need to focus on future technologies such as robotics, artificial intelligence, cyber, electronic warfare, etc.
    • The right balance will have to be struck based on a detailed assessment of China and Pakistan’s war-fighting strategies.
    • Diplomacy has a crucial role to play.
    • India would do well to improve relations with its neighbors so as not to be caught in an unfriendly neighborhood.
    • The engagement of the key powers in West Asia, including Iran, should be further strengthened.
    • Relationship with Moscow should not be sacrificed in favor of India-United States relations given that Russia could play a key role in defusing the severity of a regional gang up against India.
    • Political outreach to Kashmir aimed at pacifying the aggrieved citizens would help in easing the pressure from the western front.

    Consider the question “India faces the possibility of a two-front war. What strategy India should follow to deal with such a challenge?” 

    Conclusion

    A politically-guided doctrine, comprehensive military capability, and exploring other options will help to deal with the China-Pakistan threat.

  • Dealing with the challenges India faces

    The article deals with the challeges India has to deal with in 2021 on the various front like foreign policy and economy.

    Major challenge of 2020

    • The COVID-19 pandemic, which embraced every segment of Indian society was the most insidious threat.
    • Since April, India has confronted an unprecedented situation on the border with China in eastern Ladakh.
    • Ever since, the border has remained live; as of now there is no end in sight.
    • Chinese behaviour at the border has led to a grave hiatus in India-China relations.
    • Internal problems such as Naxalite violence and Jammu and Kashmir endured during much of 2020.
    • The economy is in recession. India has slipped further down the scale in the Human Development Index.
    • Slippages have occurred in the Global Economic Freedom Index.

    How India should deal with the challenges ahead

    1) China challenge and foreign policy

    • In foreign policy India must not remain content or satisfied with the current stand-off with China in the Ladakh sector.
    • The conflict with China is enabling many of its neighbours to play China against India.
    • So, India should think of what better options are available to it to resolve that conflict
    • To tackle China, India must come up with a whole new paradigm of ideas on which further actions can be formulated.

    2) State of the economy

    • India must seek to enhance its competitive advantage vis-a-vis other nations.
    • India should focus on export-oriented economic strategy instead of looking inward to enlarge its economy.
    • India should enhance its export capacity.
    • India’s strength lies in its diversity, and its ability to utilise all available opportunities.
    • The other pressing challenge in 2021 would be job creation for the youth, who are India’s most abiding asset.
    • The government must take urgent steps to set right the disruptions in the labour market caused by the pandemic.
    • Creating new jobs in new industries should be a critical requirement.
    • Stimulating demand would ensure growth in job opportunities, and this should go hand in hand with this task.
    • The importance of such measures must not be underestimated.

    3) Restoring confidence in constitutional practices

    • The government to restore confidence in constitutional proprieties, practices and principles.
    • There is a crisis of confidence which is affecting the body politic.
    • The starting point would be effecting an improvement in Centre-State relations, particularly between Centre and States.
    • As digital technology advances, concerns that an unduly centralised Central government could use this to further reduce the independent authority of States will again need to be dispelled.
    • Effective cooperation between the Centre and the States must be restored as early as possible to instil confidence about India’s democratic future.

    Consider the question “What are the challenges ahead for Indian economy in the wake of economic disruption caused by the pandemic? Suggest the way to deal with these challenges.”

    Conclusion

    As 2020 comes to a close, it might be worthwhile to take a hard look at these issues to ensure that 2021 does not become another wasted year.

  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    Dangers lurking beneath economic recovery

    As Indian economy recovers from the economic disruption caused by the pandemic, there are dangers of rising inequality and cosequently the rising inflation. The article deals with these issues.

    3 features of Indian recovery

    • 1) The number of new cases has fallen while the fatality rate continues to drop.
    • 2) India has rolled out one of the smallest fiscal support packages globally, with central government spending flat so far this year.
    • 3) Inflation is now a big problem, with consumer prices above the 6 per cent tolerance level for the past eight months.

    Consequences of low fiscal spending

    • It may seem that India is back on the path to recovery.
    • But  the low level of fiscal spending could leave behind other problems, such as rising inequality.
    • Although, in India there was a focus on vulnerable section, there were some misses, such as the urban poor being left out, and the overall outlay was small.
    • For instance, demand for the rural employment guarantee programme continues to outstrip supply.
    • There is the rise in inequality between large and small firms, which is likely to be felt by individual employees.
    • Large firms were helped by cost-cutting, low interest rates, access to buoyant capital markets and increased spending in the formal economy probably helped.
    • The smaller listed firms did not do as well.
    • Small firms are more labour intensive than large firms.
    • If small firms do poorly, it impacts a large number of people.
    • All this could impact demand over time.
    • Rising inequality could stoke inflation (in services particular).
    • Consumption patterns show that the rich in India tend to consume more services than the poor.
    • And rising inequality could, therefore, stoke inflation.

    Possibility of services inflation

    • 1) As a vaccine comes into play, there could be a release of pent-up demand for high-touch services.
    • 2) As large firms and their employees do relatively well, they are likely to demand more services, stoking prices.
    • 3) Many service providers did not do a regular annual price reset in 2020, so they may raise prices to cover the two years once demand picks up.
    • If inflation does become persistent and leads to tighter monetary policy, that could weigh on growth over time.

    Way forward

    • To control inflation in 2021, the RBI may have to take steps such as:-
    • 1) Gradually drain the excess liquidity in the banking sector,
    • 2) Provide a floor for short-term rates, which have fallen below the reverse repo rate.
    • 3) Narrow the policy rate corridor by raising the reverse repo rate.
    • A quicker exit from loose monetary policy could become another area where India differs from the world.

    Consider the question “What are the consequences of economic recovery in the wake of pandemic? Suggest the ways to deal with these consquences.”

    Conclusion

    Putting all of this together, it seems India will come full circle in 2021. For a while it was worried more about weak growth than high inflation. But as growth recovers, inflationary concerns could reappear.

  • Anti Defection Law

    Governor’s role in calling an Assembly Session

    In yet another tug-of-war between Kerala Governor and CM, the Governor has turned down a request to summon a special sitting of the Assembly to debate the new three central farm laws.

    Q.The political nature of the office of the Governor, especially in Opposition-ruled states, has been underlined in several instances by courts. Discuss.

    Governor and Assembly Session

    • The Governor shall from time to time summon the House or each House of the Legislature of the State to meet at such time and place as he thinks fit…” says Article 174 of the Constitution.
    • The provision also puts on the Governor the responsibility of ensuring that the House is summoned at least once every six months.
    • Although it is the Governor’s prerogative to summon the House, according to Article 163, the Governor is required to act on the “aid and advice” of the Cabinet.
    • So when the Governor summons the House under Article 174, this is not of his or her own will but on the aid and advice of the Cabinet.

    Can the Governor refuse the aid and advice of the Cabinet?

    • There are a few instances where the Governor can summon the House despite the refusal of the Chief Minister who heads the Cabinet.
    • When the CM appears to have lost the majority and the legislative members of the House propose a no-confidence motion against the CM, then the Governor can decide on his or her own on summoning the House.
    • But the actions of the Governor, when using his discretionary powers can be challenged in court.

    Precursors set by the Supreme Court

    • A number of rulings by the Supreme Court have settled the position that the Governor cannot refuse the request of a Cabinet that enjoys the majority in the House unless it is patently unconstitutional.
    • The latest in the line of rulings is the landmark 2016 Constitution Bench ruling in which the Supreme Court looked into the constitutional crisis in Arunachal Pradesh.
    • The Governor had imposed President’s Rule in the state of Arunachal.
    • In ordinary circumstances during the period when the CM enjoy the confidence of the majority, the power vested under Article 174 must be exercised with the aid and advice of the CM and his CoM.
    • In the above situation, he/she has precluded [from taking] an individual call on the issue at his own will, or in his own discretion, the verdict said.
    • The court read: the power to summon the House as a “function” of the Governor and not a “power” he enjoys.

    What Sarkaria Commission had said?

    • The Sarkaria Commission of 1983, reviewed the arrangements between the Centre and the states, had said that so long as the CoM enjoys the confidence of the Assembly, its advice in these matters, unless patently unconstitutional must be deemed as binding on the Governor.
    • It is only where such advice if acted upon, would lead to an infringement of a constitutional provision if the CoM has ceased to enjoy the confidence of the Assembly.

    What happens if the Kerala government insists on holding the special session?

    • Since the Governor’s powers are limited with regard to summoning the House, there can be no legal ground to deny a request for summoning the session.
    • In such a political row, the Governor’s refusal can also be challenged in court.
  • North-East India – Security and Developmental Issues

    What is Inner-Line Permit?

    Union Home Minister has said that Inner-Line Permit (ILP) had been the Centre’s biggest gift to Manipur since its statehood.

    Note the states where ILP is required.

    The Inner Line

    • A concept drawn by colonial rulers, the Inner Line separated the tribal-populated hill areas in the Northeast from the plains.
    • To enter and stay for any period in these areas, Indian citizens from other areas need an Inner Line Permit (ILP).
    • Arunachal Pradesh, Nagaland and Mizoram are protected by the Inner Line, and lately, Manipur was added (in December last year).
    • The concept originates from the Bengal Eastern Frontier Regulation Act (BEFR), 1873.

    Its’ Inception

    • The policy of exclusion first came about as a response to the reckless expansion of British entrepreneurs into new lands which threatened British political relations with the hill tribes.
    • The BEFR prohibits an outsider’s — “British subject or foreign citizen” — entry into the are beyond the Inner Line without a pass and his purchase of land there.
    • On the other hand, the Inner Line also protects the commercial interests of the British from the tribal communities.
    • After Independence, the Indian government replaced “British subjects” with “Citizen of India”.
    • Today, the main aim of the ILP system is to prevent settlement of other Indian nationals in the States where the ILP regime is prevalent, in order to protect the indigenous/tribal population.

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