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  • How amendment bill will affect Delhi’s administration

    The article highlights the issues with the amendment bill introduced by the Centre to clarify the term ‘Government’.

    Why Delhi was made Union Territory: Historical background

    • When the Constitution came into force, there were four kinds of States, called Parts A,B, C and D States.
    • The last two were administered by centrally appointed Chief Commissioners and Lieutenant Governors, with no locally elected Assemblies to aid and advise them.
    • First, it was felt that if Delhi became a part of any constituent State of the Union, that State would sooner or later acquire a predominant position in relation to other States.
    • Second, the need for keeping the National Capital under the control of the Union Government was deemed to be vital in the national interest.
    • Third, it was felt that if Delhi became a full State, the administration of the National Capital would be divided into rigid compartments of the State field and Union field.
    • Conflicts would likely arise in vital matters, particularly if the two governments were run by different political parties.
    • Hence, Delhi was initially made a Part C State.
    • In 1951, a Legislative Assembly was created with an elected Chief Minister.
    • In 1956, when the Constitution of India was amended to implement the provisions of the States Reorganisation Act, only two categories, namely, States and Union Territories remained in the Indian Union.
    • Delhi then became a Union Territory to be administered by an Administrator appointed by the President.
    • Ten years later, the Delhi Administration Act, 1966 provided for a limited representative Government in Delhi through a Metropolitan Council comprising 56 elected Members and five nominated Members.

    Balakrishnan Committee report

    • In 1989, the Balakrishnan Committee recommended that Delhi should continue to be a Union Territory but that there must be a Legislative Assembly and Council of Ministers responsible to the said Assembly with appropriate powers.
    • Based on this report, the Constitution (69th) Amendment Act and the Government of National Capital Territory of Delhi (GNCT) Act, 1991 were passed.
    • They roughly restored the kind of governance system that was offered to Delhi in 1952: a Union Territory with a Legislative Assembly, a Council of Ministers and an elected Chief Minister.
    • This limited reincarnation has continued to hold the field to date, despite several efforts to progress to full or near-statehood.

    LG-Delhi Government conflict

    • A Bench in 2018 ruled over the conflict and said that Parliament envisaged a representative form of Government for the NCT of Delhi.
    • The Bench also said that the Constitution has mandated a federal balance wherein independence of a certain required degree is assured to the State Governments.
    • The remaining issues of governance, especially in the matter of control over Delhi government servants, was remitted to two judges of the Court for further adjudication.
    • In 2019, there was a difference of opinion recorded in separate judgments by the two judges and the matter awaits hearing before a larger Bench. 

    Issues with the Amendment Bill

    • The central government recently introduced a Bill, namely, the Government of National Capital Territory of Delhi (Amendment) Bill, 2021 seeks, inter alia, to clarify the expression ‘Government’ in 2018 Supreme Court judgement.
    • The Bill effectively reduces the elected government to a mere vestigial organ and elevates the centrally appointed LG, to the position of a Viceroy with plenipotentiary powers.
    • It further provides that before taking any executive action to exercise powers of Government, the opinion of Lieutenant Governor shall be obtained on all such matters as may be specified by Lieutenant Governor.
    • The population of Delhi which counts among the highest in the world, will have an unrepresentative administration.
    • It is quite likely that the amendment act will end up being challenged in the constitutional courts.
    • The Supreme Court has already cautioned — “Interpretation cannot ignore the conscience of the Constitution.“

    Consider the question “Examine the issues with Government of National Capital Territory of Delhi (Amendment) Bill, 2021. Do you think that the Bill will avoid the conflict between the LG and the Delhi government?” 

    Conclusion

    The Amendment Bill should be reconsidered given its impact on the administration of the Delhi government.

  • Bad bank is good move

    The article explains the important role bad bank can play in cleaning up the balance sheets of the banks.

    How India banks dealt successfully with pandemic

    • Indian banks were written off in the early days of the pandemic due to expectations of an exponential jump in non-performing assets.
    • Only after the banks consistently talked about the lower number of restructuring requests, and the higher provision coverage ratios that the markets began to get convinced.
    • What finally turned the corner were the budget announcements related to the financial sector
    • There are several reasons for this good performance by the banks.
    • First, banks in India and globally were much better capitalised prior to the pandemic.
    • Second, Indian banks had built up a sizeable buffer to provide for bad assets negating any surprise on balance sheets during and even after the pandemic.
    • Third, independent research shows that as the size of the middle class grows to about two-thirds of Asian households.
    • Banks in Asia, including in India, have begun to adjust for this steady growth in the size of pie by experimenting with new business models, rationalising costs and providing faster and superior customer digital experience, as was clear during pandemic.
    • Fourth, Indian banks and the RBI brought about financial discipline much before the pandemic.

    Creation of Bad Bank

    • The budget this year has the provision for reation of a bad bank.
    • The proposed structure envisages setting up of a National Asset Reconstruction Company (NARC) to acquire stressed assets in an aggregated manner from lenders, which will be resolved by the National Asset Management Company (NAMC). 
    • A skilled and professional set-up dedicated for Stressed Asset Resolution will be ably supported by attracting institutional funding in stressed assets through strategic investors, AIFs, special situation funds, stressed asset funds, etc for participation in the resolution process.
    • The net effect of this approach would be to build an open architecture and a vibrant market for stressed assets.

    How it will work

    • Banks may first transfer those assets to the proposed bad bank with a 100 per cent provision on its book and then based on the experience they will decide on transferring assets with less than 100 per cent provisioning at a later date.
    • It is also being speculated that of the total amounts recovered, a specified percentage will be in the form of security receipts.
    • These receipts will reside in the bank balance sheets, but will carry a zero-risk weight, with full government guarantees for a specified period of time.

    How it will benefit the banks

    • The benefits of this process includes the recovered value, and significant lending leverage because of three factors:
    • One, capital being freed up from less than fully provisioned bad assets.
    • Two, capital freed up from security receipts because of a sovereign guarantee.
    • Three, cash receipts that come back to the banks and can be leveraged for lending, also freeing up provisions from the balance sheet.
    • There are several international success stories of a bad bank accomplishing its mission and there is no reason to believe why India cannot accomplish its objective.
    • The current Indian approach will drive consolidation of stressed assets under the AMC for better and faster decision making.
    • This will free up management bandwidth of banks enabling them to focus on credit growth, leading to an enhancement in their valuations.
    • Governance of the AMC and its independence is central to its successful functioning, there are multiple suggestions to make.
    • These include keeping majority ownership in the private sector, putting together a strong and independent board, a professional team, and linking AMC compensation to returns delivered to investors.

    Consider the question “What is a bad bank? How its creation could help the banking sector?”

    Conclusion

    The creation of a bad bank will help the banking sector contribute more in the growth of the country

  • Applying lessons from India-Bangladesh ties to relations with Pakistan

    There is a sharp contrast between India’s relations with its neighbours two neighbours: Pakistan and Bangladesh. The article suggest drawing on the lessons from Indo-Bangladesh relations to mend Indo-Pak relations.

    Indo-Bangladesh relations

    • Prime Minister of India will travel to Dhaka this week to commemorate Bangladesh’s Declaration of Independence from Pakistan 50 years ago.
    • From being one of the world’s poorest countries in 1972, Bangladesh is now racing to be in the world’s top 25 economies by the end of this decade.
    • It is also a time for deeper reflection — on the inability of the region to come to a closure on the two Partitions of the subcontinent, the first in 1947 and the second in 1971.
    • Delhi and Dhaka have started finding ways to overcome the tragedy of the Partition to chart a new course of bilateral and regional cooperation.
    • Prime Minister Sheikh Hasina has provided strong leadership in advancing ties with India over the last decade and more.
    • Recently the Indian government mobilised enough political support to get a boundary settlement agreement with Bangladesh approved by the Parliament.
    • India also backed an international tribunal’s award resolving the maritime territorial dispute with Bangladesh.
    • The steady improvement in bilateral relations over the last decade has reflected in growing trade volumes, expanding trans-border connectivity, mutual cooperation on terrorism, and widening regional cooperation.

    Applying lessons from Indo-Bangladesh relations to Indo-Pak relations

    • Positive changes in India’s relations with Pakistan have been elusive.
    • Hopes have been rekindled by the agreement late last month between the two military establishments to a ceasefire on the border and to address each other’s concerns.
    • Following are the lessons we can learn and apply productively to Indo-Pak relations

    1) Importance of political stability

    • First lesson is the importance of political stability and policy continuity that have helped Delhi and Dhaka deepen bilateral ties over the last decade.
    • In contrast, the political cycles in Delhi and Islamabad have rarely been in sync.
    • Pakistan’s mainstream civilian leaders have all supported engagement with India.
    • In fact, it is the military that is yet to make up its collective mind.

    2) Concerns for mutual security

    • Cooperation in countering terrorism built deep mutual trust between Dhaka and Delhi.
    • That trust helped deal with many complex issues facing the relationship.
    • In the case of Pakistan, its army has sought to use cross-border terrorism as a political lever to compel India to negotiate on Kashmir.
    • If sponsoring terror seemed a smart strategy in the past, it has now become the source of international political and economic pressure on Pakistan.

    3) Depoliticise national economic interests

    • Delhi and Dhaka have steadily moved forward on issues relating to trade, transit and connectivity by dealing with them on their own specific merits.
    • Pakistan, on the other hand, has made sensible bilateral commercial cooperation and regional economic integration hostages to the Kashmir question.
    • It is not clear if Pakistan is ready to separate the two and expand trade ties while talking to India on Kashmir.

    Consider the question “The steady improvement in bilateral relations with Bangladesh over the last decade can offer valuable lessons to be applied to India-Pakistan relations. In light of this, examine the factors that India and Pakistan need to focus on to achieve improvement in bilateral relations.”

    Conclusion

    Both India and Pakistan need to recognise the importance of pursuing the national well being through regional cooperation. That is exactly what Bangladesh has done in the last decade.

  • Ken-Betwa Link Project (KBLP)

    In the presence of PM and Jal Shakti Minister, the CMs of Madhya Pradesh and Uttar Pradesh have signed an agreement to implement the Ken Betwa Link Project (KBLP).

    Must read:

    Interlinking of rivers: Significance & Challenges

    What is the Ken Betwa Link Project?

    • The Ken-Betwa Link Project is the first project under the National Perspective Plan for the interlinking of rivers.
    • Under this project, water from the Ken River will be transferred to the Betwa river. Both these rivers are tributaries of the river Yamuna.
    • The project is expected to provide annual irrigation of 10.62 lakh hectares, drinking water supply to about 62 lakh people and also generate 103 MW of hydropower.

    The Project has two phases:

    • Under Phase-I, one of the components — Daudhan dam complex and its appurtenances like Low Level Tunnel, High Level Tunnel, Ken-Betwa link canal and Power houses — will be completed.
    • While in the Phase-II, three components — Lower Orr dam, Bina complex project and Kotha barrage — will be constructed.

    Regions benefitting from KBLP

    • The project lies in Bundelkhand, a drought-prone region, which spreads across 13 districts of Uttar Pradesh and Madhya Pradesh.
    • It will be of immense benefit to the water-starved region of Bundelkhand, especially in the districts of Panna, Tikamgarh, Chhatarpur, Sagar, Damoh, Datia, Vidisha, Shivpuri and Raisen of Madhya Pradesh and Banda, Mahoba, Jhansi and Lalitpur of Uttar Pradesh.
    • It will pave the way for more interlinking of river projects to ensure that scarcity of water does not become an inhibitor to development in the country.

    What about the Panna tiger reserve?

    • Out of the 6,017 ha of forest area coming under submergence of Daudhan dam of Ken Betwa Link Project, 4,206 ha of the area lies within the core tiger habitat of Panna Tiger Reserve.

    Previous examples of river-linking

    • In the past, several river linking projects have been taken up. For instance, under the Periyar Project, the transfer of water from the Periyar basin to the Vaigai basin was envisaged.
    • It was commissioned in 1895.
    • Similarly, other projects such as Parambikulam Aliyar, Kurnool Cudappah Canal, Telugu Ganga Project, and Ravi-Beas-Sutlej were undertaken.

    Recent developments on the interlinking of rivers in India

    • In the 1970s, the idea of transferring surplus water from a river to a water-deficit area was mooted by the then Union Irrigation Minister Dr K L Rao.
    • Rao, who himself was an engineer, suggested the construction of a National Water Grid for transferring water from water-rich areas to water-deficit areas.
    • Similarly, Captain Dinshaw J Dastur proposed the Garland Canal to redistribute water from one area to another.
    • However, the government did not pursue these two ideas further.

    The National Perspective Plan

    • It was in August, 1980 that the Ministry of Irrigation prepared a National Perspective Plan (NNP) for water resources development envisaging inter-basin water transfer in the country.
    • The NPP comprised two components: (i) Himalayan Rivers Development; and (ii) Peninsular Rivers Development.
    • Based on the NPP, the National Water Development Agency (NWDA) identified 30 river links—16 under the Peninsular component and 14 under the Himalayan Component.
    • Later, the river linking idea was revived under the then Vajpayee Government.

    Ken Betwa Link Project is one of the 16 river linking projects under the Peninsular component.

    Clearances required for a river-linking project

    • Generally, 4-5 types of clearances are required for the interlinking of river projects.
    • These are Techno-economic (given by the Central Water Commission); Forest Clearance and Environmental clearance (Ministry of Environment & Forests); Resettlement and Rehabilitation (R&R) Plan of Tribal Population (Ministry of Tribal Affairs) and Wildlife clearance (Central Empowered Committee).

  • Mizoram’s bond with people fleeing Myanmar

    Mizoram CM has expressed his sympathies for the people fleeing areas bordering Mizoram. These areas are inhabited by Chin communities who are ethnically Mizo.

    Map reading: Note all NE states bordering Myanmar.

    Who are the Chin communities?

    • The Chin Hills, or the Indo-Chin hill ranges as they are often called, are a mountainous region in north-western Myanmar.
    • At an elevation of 2100-3000 metres, this heavily- forested mountain region was the home of numerous tribes that fall under the Zo umbrella.
    • The Zo people include all the tribes that come under the Chin-Kuki-Mizo ethnic group spread across Myanmar, India and Bangladesh.
    • They include a host of tribes, sub-tribes and clans such as Chin, Kuki, Mizo, Zomi, Paitei, Hmar, Lushei, Ralte, Pawi, Lai, Mara, Gangte, Thadou etc.

    Their ethnic origin

    • Believed to have originated in China, the tribes migrated through Tibet to settle in Myanmar, and speak a group of the Tibeto-Burman languages.
    • But constant feuds among clans of different tribes and their kings (chieftains), drove many of the clans westwards, towards Mizoram and some parts of Manipur, in the 17th century.
    • Here the tribes set up new villages and colonies, but even with their new identities, they remain socially and emotionally tied with the Chin tribes of Myanmar.
    • When British rule extended towards the Northeast, Mizoram was denoted an “excluded area” and remained outside the administration of the British, governed only by the Scheduled District Act.

    Nature of the bond with Mizos

    • While they are separated by a 510-km India-Myanmar border, they consider themselves “one people’’ despite past conflicts: the Indo-Chin people.
    • Besides the shared ethnicity, what binds these two peoples together is a shared religion.
    • Mizoram is predominantly Christian, as are the Chin people of Buddhist-majority Myanmar.
    • Mizoram officials refer to the refugees’ status as a Christian minority people in seeking asylum for them, and also the fear of persecution by the junta.
    • Rih Dil in Chin state, Myanmar, is a cultural and spiritual lake for the Mizos, deeply revered in folklore, shaping pre-Christian belief of traditional Mizo views of life after death.

    How well are the two sides connected?

    India’s Look East, Act East policy and greater interactions on the border have strengthened an already strong connection between the people on either side of the border.

    • The Mizoram-Myanmar border is porous, with very little fencing, if any.
    • While the latest influx has been driven by the coup, Myanmar residents have been crossing this open border for decades.
    • It is understood that the actual number of refugees is much higher, with more arriving every day.
    • In the early 20th century, Mizos from Champhai district and elsewhere migrated to Myanmar, setting up villages in the Kalay-Kabaw valley.
    • Many are believed to have joined the Myanmar army for lucrative employment.
    • Many Mizo families also migrated to Myanmar in 1966 and 1986, when the Mizo National Front sought secession from India, to escape counter-insurgency operations from the Indian government.

    The Free Movement Regime

    • The Mizo social fabric spans across the border, which now separates families.
    • The two countries have an arrangement called the Free Movement Regime (FMR) that allows locals on either side to go up to 16 km on the other side and stay up to 14 days.
    • Thousands regularly cross over on either side for work and to meet relatives, often unofficially and for extended periods.
    • Marriages are often arranged across the border.

    Trade dependency on Myanmar

    • In border trade, Mizoram depends to a large extent on Myanmar for many essential commodities including beef, pork, good quality rice, fruits, and household utensils.
    • Mizoram sends across items scarce in Myanmar such as medicines or fertilisers.

    What is India’s policy on asylum seekers?

    • India is not a signatory to the 1951 United Nations Convention and 1967 Protocol Relating to the Status of Refugees, and it does not currently have a national law on refugees.
    • In 2011, the Centre circulated to all states and UTs a Standard Operating Procedure to deal with foreign nationals who claimed to be refugees.
    • An illegal immigrant can be a foreign national who enters India on valid travel documents and stays beyond their validity or a foreign national who enters without valid travel documents.
    • Cases can be justified on grounds of well-founded fears of persecution on account of race, religion, sex, nationality, ethnic identity, membership of a particular social group or political opinion.
    • They can be recommended by states or UTs to the Home Ministry for a long-term visa (LTV) after due security verification.

    Note: LTV-holders are allowed to take up private-sector employment and enrol in any academic institution.

    What is happening in Mizoram right now?

    • The Mizo Zirlai Pawl, the apex Mizo students body, on February 3 held a sit-in demonstration in Aizawl in solidarity with the people of Myanmar.
    • Several Mizo village council authorities have issued letters and statements affirming their willingness to accommodate Chin refugees.
    • The CM gave an assurance in the Assembly that the state government would be ready to provide assistance to civilians fleeing the Myanmar regime.

    Way ahead

    • With the swell of sympathy among Mizos for the fleeing Chin people and increasing pressure on the state government, it is unlikely that Mizoram will back down any time soon — unless the Centre devises a way out.

  • Remission of Duties and Taxes on Export Products (RODTEP) Scheme

    The notification of benefit rates payable to exporters under the Remission of Duties and Taxes on Export Products (RODTEP) scheme is expected to take more time as it is facing ‘teething issues’.

    Try this PYQ:

    Q.Among the following, which one is the largest exporter of rice in the world in the last five years? (CSP 2019)

    (a) China

    (b) India

    (c) Myanmar

    (d) Vietnam

    RODTEP Scheme

    • RoDTEP is a scheme for Exporters to make Indian products cost-competitive and create a level playing field for them in the Global Market.
    • It has replaced the current Merchandise Exports from India Scheme, which is not in compliance with WTO norms and rules.
    • The new RoDTEP Scheme is a fully WTO compliant scheme.
    • It will reimburse all the taxes/duties/levies being charged at the Central/State/Local level which are not currently refunded under any of the existing schemes but are incurred at the manufacturing and distribution process.

    Why need such a scheme?

    • The scheme was announced last year as a replacement for the Merchandise Export from India Scheme (MEIS), which was not found not to be compliant with the rules of the World Trade Organisation.
    • Following a complaint by the US, a dispute settlement panel had ruled against India’s use of MEIS as it had found the duty credit scrips awarded under the scheme to be inconsistent with WTO norms.

    Back2Basics: Merchandise Exports from India Scheme (MEIS)

    • MEIS was launched with an objective to enhance the export of notified goods manufactured in a country.
    • This scheme came into effect on 1 April 2015 through the Foreign Trade Policy and will be in existence till 2020.
    • MEIS intended to incentivize exports of goods manufactured in India or produced in India.
    • The incentives were for goods widely exported from India, industries producing or manufacturing such goods with a view to making Indian exports competitive.
    • The MEIS covered almost 5000 goods notified for the purpose of the scheme.

  • Gandhi Peace Prize

    The Culture Ministry has announced that Sheikh Mujibur Rahman and the late Sultan of Oman, Qaboos bin Said Al Said, would be awarded the Gandhi Peace Prize for 2020 and 2019 respectively.

    Note the features of the award such as prize, the composition of jury etc.

    Gandhi Peace Prize

    • The International Gandhi Peace Prize, named after Mahatma Gandhi, is awarded annually by the Government of India.
    • As a tribute to the ideals espoused by Gandhi, the GoI launched the International Gandhi Peace Prize in 1995 on the occasion of the 125th birth anniversary of Mahatma Gandhi.
    • This is an annual award given to individuals and institutions for their contributions towards social, economic and political transformation through non-violence and other Gandhian methods.

    Its features

    • The award carries ₹1 crore (US$140,000) in cash, convertible in any currency in the world, a plaque and a citation.
    • It is open to all persons regardless of nationality, race, creed or gender.
    • A jury consisting of the PM of India, the Leader of the Opposition in the Lok Sabha, the Chief Justice of India, Speaker of the Lok Sabha and one other eminent person decides the awardees each year.
    • Ordinarily, only proposals coming from competent persons invited to nominate are considered.
    • However, a proposal is not taken as invalid for consideration by the jury merely on the ground of not having emanated from competent persons.

    Information about the awardees

    (1) Sheikh Mujibur Rahman (1920-1975)

    • The Prize recognizes the immense and unparalleled contribution of Bangabandhu Sheikh Mujibur Rahman in inspiring the liberation of Bangladesh.
    • It acknowledges the contribution in bringing stability to a nation born out of strife, laying the foundation for the close and fraternal relations between India and Bangladesh and promoting peace and non-violence in the Indian subcontinent.

    (2)Sultan Qaboos Bin Said (1940-2020)

    • Sultan Qaboos was a visionary leader whose twin policy of moderation and mediation in addressing international issues won him praise and respect across the globe.
    • He played an important role in supporting peace efforts in various regional disputes and conflicts. H.M. Sultan Qaboos was the architect of the special ties between India and Oman.
    • He had studied in India and always maintained a special relationship with India.
    • Under his leadership, India and Oman became strategic partners and our mutually beneficial, comprehensive partnership strengthened and scaled newer heights.

  • PM-Kisan: Income support to farmers needs to be more inclusive

    The article highlights the challenge of exclusion error in the PM-KISAN and suggests measures to deal with the issue by drawing on the success of KALIA and Rythu Bandhu.

    Exclusion in PM-KISAN

    • Budget FY22 announced an allocation of Rs 65,000 crore to the PM-Kisan scheme.
    • Since 2019, the PM-Kisan has been the largest component of the agriculture budget each year.
    • The scheme is targeted at farmers who own cultivable land as per land records of the state.
    • Unfortunately, this leaves out vulnerable sections such as tenant farmers, women farmers, tribal families and landless labourers.
    • The exclusion is the result of the challenge of first identifying these people, since our existing systems do not formally recognise them as farmers.

    The need to identify farmers

    • Despite 73.2% of rural women engaging in agriculture, only 12.8% are reported to own land.
    •  Among tribal communities, of the 20 million tribal families, less than 2 million have received individual forest rights pattas; the rest are ‘invisible’ and left out of government safety nets.
    • Landless agricultural labourers and tenant farmers account for close to 150 million people in rural India, and they too are not part of state land records.
    • Although there are multiple welfare schemes for farmers, there is no standard government definition of a farmer.
    • The 2007 MS Swaminathan Committee called out that the term ‘farmer’ would include any person actively engaged in growing crops and other agricultural commodities, and would include not only landholders, but also cultivators, labourers, sharecroppers, tenants and tribal families, amongst others.

    Learning from KALIA and Rythu Bandhu

    • Odisha has been a frontrunner in implementing an inclusive farmer welfare scheme, the KALIA.
    • The KALIA provides an unconditional income support of Rs 12,500 to landless agricultural households and an annual Rs 10,000 to small and marginal land-owning farmers as well as tenant farmers.
    • Odisha leveraged existing databases such as the Paddy Procurement Automation System, the Pradhan Mantri Fasal Bima Yojana and the National Food Security Act, and deployed close to 50,000 government staff at state, district and block levels to conduct extensive on-ground verification to identify eligible beneficiaries.
    • Telangana took a different approach prior to rolling out the Rythu Bandhu Scheme, a direct benefit transfer scheme for land-owning farmers.
    • The Rythu Bandhu Scheme targeted only land-owning farmers.
    • But the state took on the onus of updating land records before implementing the scheme.
    • The revenue and agriculture departments partnered to undertake a state-wide Land Records Updation Programme (LRUP).
    • This shows that updating and digitising land records databasse is possible with focused efforts.

    Way forward

    • Instead of every scheme having its own farmer beneficiary database, the ideal solution would be to leverage the existing land records databases in every state.
    • The design should ensure women’s names are not excluded.
    • Implementation of the Forest Rights Act 2006 needs to be accelerated so that tribal families receive forest rights pattas and become part of the land records database.
    • The next challenge is to build in incentives in the process to encourage the maintenance of the land record database, such that all future transactions such as sale, gift etc. are regularly updated to increase the reliability of the records.

    Consider the question “How lack of definition of farmer leads to inclusion and exclusion errors in the schemes for farmers. Suggest the measures to deal with the issue.”

    Conclusion

    The pandemic, more so than anything else, has highlighted the need for the government to have robust social security mechanisms to reach the most vulnerable sections of the population, and making PM-Kisan more inclusive is an important step in that direction.

    Source:

    https://www.financialexpress.com/opinion/pm-kisan-income-support-to-farmers-needs-to-be-more-inclusive/2217436/

  • Iran deal could be rescued by the IAEA

    The article explains how IAEA could play an important role in finding a solution to the stalemate between the U.S. and Iran on JCPOA.

    Issue of Iran’s return to JCPOA

    • There is uncertainty between the U.S. and Iran on the Joint Comprehensive Plan of Action (JCPOA) as to whether Iranian compliance comes first or the lifting of sanctions by the U.S.
    • In this context, the International Atomic Energy Agency (IAEA) is back on the stage to rescue the JCPOA.
    • The U.S. tried to pressurise Iran by proposing a resolution in the IAEA Board of Governors meeting criticising Iranian non-compliance with the JCPOA and its alleged IAEA safeguards violations.
    • This comes amidst rumours that Iran might withdraw from the Non-Proliferation Treaty (NPT).

    Iran may follow Indian model on creating a deterrent

    • Foreign Policy recently noted that Iranian society increasingly see the weapon not just as an ultimate deterrent but as a panacea for Iran’s chronic security problems and challenges to its sovereignty by foreign powers.
    • If the stalemate continues on JCPOA, because of the U.S. pressure, public opinion may shift towards the Indian model of creating a deterrent and then seeking a special dispensation to avoid severe sanctions.
    • But the risks involved in such a policy will be grave, including the possibility of military action by Israel.

    Relation between IAEA and NPT

    • The IAEA is neither the Secretariat of the NPT nor is it empowered to request States to adhere to it.
    • . It does, however, have formal responsibility in the context of implementing Article III of the Treaty.
    • At the broadest level, the IAEA provides two service functions under the NPT.
    • 1) It facilitates and provides a channel for endeavours aimed at further development of the applications of nuclear energy for peaceful purposes.
    • 2) It administer international nuclear safeguards, in accordance with Article III of the Treaty, to verify fulfilment of the non-proliferation commitment assumed by non-nuclear-weapon States party to the Treaty.
    • The NPT assigns to the IAEA the responsibility for verifying, at the global level, through its safeguards system, that non-nuclear weapon States fulfil their obligations not to use their peaceful nuclear activities to develop any nuclear explosive devices of any kind.

    How IAEA could play role in JCPOA

    • Accordingly, the Iranian file could go back to the IAEA to start fresh negotiations to restrain Iran to remain within the permissible level of enrichment of uranium.
    • This may mean going back to the pre-six nation initiative, when the IAEA could not certify that Iran was not engaged in weapon activities.
    • With the experience of the JCPOA, any new arrangement has to ensure the following:
    • 1) Iran must have sanctions relief.
    • 2) The stockpile of enriched uranium should not exceed the limits established.
    • 3) There should be guarantees that Iran will not violate the safeguards agreement.
    • The test is whether these can be accomplished within the framework of the IAEA.

    Way forward

    • Since the IAEA is a technical body, its deliberations may be kept at the technical level.
    • At the same time, since it is open for the IAEA to report to the Security Council for necessary action, the IAEA will have the necessary clout to insist on the implementation of the NPT and its additional protocol.
    • A new avenue may open for Iran to continue its peaceful nuclear activities as permitted in the NPT.

    Consider the question “Examine the role played by IAEA under NPT. How this role can help IAEA in breaking the ice between Iran and the U.S. on JCPOA?” 

    Conclusion

    Thus, IAEA can play an important role in ending the statement JCPOA finds itself in and ensure compliance from Iran on JCPOA and lifting sanctions by the U.S.

    Back2Basics: Article III of NPT

    • This article provides for the application of safeguards to ensure that nuclear material in non-nuclear weapon states (NNWS) isn’t diverted to nuclear weapons or other nuclear explosive devices.
    •  NNWS must place all nuclear materials in all peaceful nuclear activities under IAEA safeguards.
    • Each nuclear weapon state (NWS) will not provide nuclear materials or equipment to a NNWS without an IAEA safeguards agreement.
    • The safeguards should comply with Article IV of the NPT, and should not hamper peaceful uses of nuclear technology or economic/technical development in general.
    • Safeguards agreements can be concluded on an individual or group basis.
    • After the entry into force of the NPT, state parties had 180 days to commence negotiation of a safeguards agreement. Currently, state parties must begin negotiations by the date they deposit their instruments of ratification or accession.

  • Factors driving FDI in India

    The article explains the four factors that explain the FDI inflows in India.

    India’s economic decade

    • Almost every major global company is either contemplating or operating on the assumption that India is a key part of their growth story.
    • Google, Facebook, Walmart, Samsung, Foxconn, and Silver Lake have been just a handful of the firms that made huge investments in Inda.
    • As a result, India saw the fastest growth in Foreign Direct Investment (FDI) inflows among all the major economies last year.
    • Meanwhile, India’s latest FDI totals still lags behind the highest tallies in other markets such as China and Brazil.

    Issues faced by investors and factors driving investment

    • Frequent shifts in the policy landscape and persistent market access barriers are standard complaints levied against India by the business community.
    • The government’s push to build a “self-reliant” India has also rattled skittish investors and smaller companies that lack the resources to navigate on-the-ground hurdles.
    • Still, investors recognise that doing business in India — or any emerging market  — comes with inherent risks but that adaptation in approach is critical to success.
    • Four core dynamics drive this calculus and explain why multinational companies are making India an essential part of their growth story.

    4 Factors driving FDI in India

    1) India’s population

    • What India offers through its nearly 1.4 billion people and their growing purchasing power is uniquely valuable for multinationals with global ambitions.
    • No other country outside of China has a market that houses nearly one in six people on the planet and a rising middle class of 600 million.

    2) Shifting geopolitics

    •  Rising U.S.-China competition is forcing multinationals to rethink their footprints and production hubs.
    • Savvy countries such as Vietnam have capitalised on this opportunity to great effect, but India is finally getting serious about attracting large-scale production and exports.

    3) Digital connectivity

    • Cheap mobile data have powered a revolution across India’s digital economy and connected an estimated 700 million Indians to the Internet.
    • More than 500 million Indians still remain offline, this is a key reason why leading global tech companies are investing in India and weathering acute policy pressure.
    • Domestic Indian companies have also demonstrated their ability to innovate and deliver high quality services at scale.
    • The partnerships and FDI flows linking multinationals and Indian tech firms will continue to unlock shared market opportunities for years to come.

    4) National resilience

    • Despite facing the scourge of the novel coronavirus head on, India has managed the pandemic better than many of its western peers and restored economic activity even before implementing a mass vaccination programme.
    • These are remarkable developments, and yet they speak to India’s underlying resilience even in the face of historic challenges.

    Shared value creation

    • Unlocking opportunities in the Indian market cannot take the form of a one-way wealth transfer.
    • Companies need to demonstrate their commitment to India.
    • Successful companies do this by placing shared value creation at the heart of their business strategy.
    • They tie corporate success to India’s growth and development.
    • They forge enduring partnerships and lasting relationships, elevate and invest in Indian talent, align products with Indian tastes, and ultimately tackle the hardest problems facing India today.

    Consider the question “Despite the issues faced by the investors, India witnessed the fastest growth in the FDI inflows among all the major economies amid pandemic. In light of this, examine the factors driving the FDI in India.”

    Conclusion

    For leading companies with global ambitions and a willingness to make big bets, the rewards of investing in the Indian market are substantial and well worth pursuing.