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  • Sub-categorization of OBCs: Development so far

    The Centre has extended the tenure of the Commission to Examine Sub-categorisation of Other Backward Classes (OBCs) headed by Justice G Rohini, till 31st July this year.

    Rs 1.92 crore have been spent on the Commission including salary, consultant fee and other expenses and the report is yet to be publicized. It is can be very well understood that the report will have huge political consequences.

    What is the sub-categorisation of OBCs?

    • OBCs are granted 27% reservation in jobs and education under the central government.
    • In September 20202, a Constitution Bench of the Supreme Court reopened the legal debate on sub-categorisation of SCs and STs for reservations.
    • The debate arises out of the perception that only a few affluent communities among over 2,600 included in the Central List of OBCs have secured a major part of this 27% reservation.

    Need for sub-categorization

    • The argument for sub-categorisation — or creating categories within OBCs for reservation — is that it would ensure “equitable distribution” of representation among all OBC communities.
    • To examine this, the Rohini Commission was constituted on October 2, 2017.
    • At that time, it was given 12 weeks to submit its report but has been given several extensions since, the latest one being the 10th.
    • Before the Rohini Commission was set up, the Centre had granted constitutional status to the National Commission for Backward Classes (NCBC).

    What are the Commissions’ terms of reference?

    It was originally set up with three terms of reference:

    1. To examine the extent of inequitable distribution of benefits of reservation among the castes or communities included in the broad category of OBCs with reference to such classes included in the Central List;
    2. To work out the mechanism, criteria, norms and parameters in a scientific approach for sub-categorisation within such OBCs;
    3. To take up the exercise of identifying the respective castes or communities or sub-castes or synonyms in the Central List of OBCs and classifying them into their respective sub-categories.

    The fourth term of reference was added on January 22, 2020, when the Cabinet granted it an extension:

    1. To study the various entries in the Central List of OBCs and recommend correction of any repetitions, ambiguities, inconsistencies and errors of spelling or transcription.

    Why so many extensions are being given?

    • This was added following a letter to the government from the Commission on July 30, 2019.
    • In process of preparing the sub-categorised central list of OBCs, the Commission has noted several ambiguities in the list as it stands now.
    • The Commission is of the opinion that these have to be clarified/rectified before the sub-categorised central list is prepared.

    What progress has it made so far?

    • In its letter to the government on July 30, 2019, the Commission wrote that it is ready with the draft report (on sub-categorisation).
    • Following the latest term of reference given (on January 22, 2020) to the Commission, it is studying the list of communities in the central list.

    How smooth has its work been?

    • A hurdle for the Commission has been the absence of data for the population of various communities to compare with their representation in jobs and admissions.
    • On August 31, 2018, then Home Minister had announced that in Census 2021, data of OBCs will also be collected, but since then the government has been silent on this.
    • Many groups of OBCs have been demanding enumeration of OBCs in the Census.

    What have its findings been so far?

    • In 2018, the Commission analysed the data of 1.3 lakh central jobs given under OBC quota over the preceding five years and OBC admissions to central higher education institutions.
    • The findings were: 97% of all jobs and educational seats have gone to just 25% of all sub-castes classified as OBCs; 24.95% of these jobs and seats have gone to just 10 OBC communities.
    • 983 OBC communities — 37% of the total — have zero representation in jobs and educational institutions; 994 OBC sub-castes have a total representation of only 2.68% in recruitment and admissions.

  • Bill coming on Delhi government and L-G functions

    The Ministry of Home Affairs (MHA) is all set to introduce legislation to amend a 1991 Act pertaining to the powers and functions of the Delhi government and the Lieutenant Governor (LG).

    What is the new bill?

    • The Bill is likely to clearly define the powers of the LG and the Delhi government on the lines of the Supreme Court judgment of February 2019.
    • It is likely to give more teeth to the LG’s office.

    Why need such a law?

    • The Delhi UT government is often at loggerheads with the Centre on administrative matters in the Capital.

    What made it to the news?

    • A Supreme Court Bench of Justices A.K. Sikri and Ashok Bhushan had, other than the question of services, given a unanimous verdict on the role of the two authorities.
    • In the February 14, 2019 verdict, the court upheld as “legal” the MHA’s 2015 notifications authorising the LG to exercise powers in relation to services.
    • It had directed the Anti-Corruption Branch (ACB) police not to take cognizance of offences against Central government officials.

    SC confirms HC findings

    • The apex court confirmed the Delhi High Court’s finding that the ACB’s jurisdiction is confined to Delhi officials and statutory bodies and does not extend to Central government officials.
    • Last year, the MHA notified the rules for the newly created UT of J&K, where it provided a solution in case of difference of opinion between the LG and a Minister.
    • It ruled that if no agreement could be reached even after a month, the decision of the Lieutenant Governor shall be deemed to have been accepted by the Council of Ministers.

    What are the key propositions?

    • According to changes proposed in the new Act, the LG could act in his discretion in any matter that is beyond the purview of the powers of the Assembly of Delhi.
    • This would be in matters related to the All India (Civil) Services and the ACB.

    Back2Basics: Special Status for New Delhi

    • Article 239AA of the Constitution of India granted Special Status to Delhi among Union Territories (UTs) in the year 1991 through 69th constitutional amendment.
    • It provided a Legislative Assembly and a Council of Ministers responsible to such Assembly with appropriate powers.
    • That’s when Delhi was named as National Capital Region (NCT) of Delhi.
    • As per this article – Public Order, Police & Land in NCT of Delhi fall within the domain and control of Central Government which shall have the power to make laws on these matters.
    • For remaining matters of State List or Concurrent List, in so far as any such matter is applicable to UTs, the Legislative Assembly shall have the power to make laws for NCT of Delhi.

  • The way forward in Myanmar

    The article discusses the five lessons from past experiences as the international community frames its response to the military coup in Myanmar.

    Coup in Myanmar

    • After Aung San Suu Kyi’s National League for Democracy (NLD) swept the polls by winning almost 80% of the vote, Myanmar’s military staged a coup and declared a state of Emergency for a year.
    • Myanmar, which started a fragile transition to democracy 10 years ago after decades of brutal military dictatorship, is back in the hands of the Generals.

    Lessons for the international community

    1) Benefits of sanctions

    • The developments in Myanmar will invariably bring back the old debate around the prudence of sanctions.
    • Notwithstanding the western sanctions before 2010 [during military rule], China, Thailand and Singapore were the key trading partners of Myanmar.
    • The present reality is no different.
    • Singapore was reportedly the largest foreign investor in Myanmar in 2020, accounting for 34% of the overall approved investment.
    • Given that the military has been able to economically withstand sanctions by striking deals with Asian countries in the past, sanctions are unlikely to bring any major political change.

    2) Accountability for crime against humanity

    • As political changes got underway in 2010, many generals were on the radar of the international community for perpetuating a regime of human rights abuses, quietly vanished from the scene.
    • This bred a culture of impunity.
    • During the 2017 Rohingya crisis, senior military officials brazenly exploited social media to mobilise public support for brutality against Rohingyas.

    3) China’s influence

    • Three, a critical international player in Myanmar is China.
    • The international community, particularly the West, has to factor in China’s multi-layered influence on Myanmar.

    4) Revival of past international mechanisms

    • Many international mechanisms comprising Western and Asian countries that were formed to coordinate strategies on Myanmar were disbanded after the 2015 election.
    • That the changes in Myanmar were irreversible was the standard thinking.
    • Relevant actors should be brought on a common platform by reviving past mechanisms.

    5) Increasing the engagement with domestic stakeholders

    • The expectation that Myanmar will see a nationwide protest against the military after the coup should be examined with the geographical extent of Bamar, Myanmar’s largest ethnic group, who support the National League for Democracy.
    • The minorities in the country form around 35% of the population.
    • In the current scenario, the military will continue to exploit ethnic and religious fault lines.
    • Engagement with domestic stakeholders, including ethnic minorities, especially from the north, should be pursued by the international community.

    Consider the question “As military hinders Myanmar’s transition to democracy, what are the factors that should be considered by the international community as it form the response to the situation in the country.”

    Conclusion

    There is one consistent lesson, that no change is irreversible, particularly in a context where military leadership scripted the meaning of democracy, and domestic forces and geopolitics continuously fail to deter its actions and impulses to rule.

  • Pradhan Mantri Matru Vandana Yojana (PMMVY)

    The government’s maternity benefit scheme, or Pradhan Mantri Matru Vandana Yojana, has crossed 1.75 crores, eligible women, till the financial year 2020, the Centre informed Parliament.

    PMMVY

    • The PMMVY is a maternity benefit program introduced in 2017 and is implemented by the Ministry of Women and Child Development.
    • It is a conditional cash transfer scheme for pregnant and lactating women of 19 years of age or above for the first live birth.
    • It provides partial wage compensation to women for wage-loss during childbirth and childcare and to provide conditions for safe delivery and good nutrition and feeding practices.
    • Under the scheme, pregnant women and lactating mothers receive ₹5,000 on the birth of their first child in three instalments, after fulfilling certain conditionalities.
    • In 2013, the scheme was brought under the National Food Security Act, 2013 to implement the provision of cash maternity benefit stated in the Act.
    • The direct benefit cash transfer is to help expectant mothers meet enhanced nutritional requirements as well as to partially compensate them for wage loss during their pregnancy.

    Eligibility Conditions and Conditionalities

    The first transfer (at pregnancy trimester) of ₹1,000 requires the mother to:

    • Register pregnancy at the Anganwadi Centre (AWC) whenever she comes to know about her conception
    • Attend at least one prenatal care session and taking Iron-folic acid tablets and TT1 (tetanus toxoid injection), and
    • Attend at least one counselling session at the AWC or healthcare centre.

    The second transfer (six months of conception) of ₹2,000 requires the mother to:

    • Attend at least one prenatal care session and TT2

    The third transfer (three and a half months after delivery) of ₹2,000 requires the mother to:

    • Register the birth
    • Immunize the child with OPV and BCG at birth, at six weeks and at 10 weeks
    • Attend at least two growth monitoring sessions within three months of delivery

    Additionally, the scheme requires the mother to:

    • Exclusively breastfeed for six months and introduce complementary feeding as certified by the mother
    • Immunize the child with OPV and DPT
    • Attend at least two counselling sessions on growth monitoring and infant and child nutrition and feeding between the third and sixth months after delivery

    Before judging this factual information, take this PYQ form 2019:

    Q.Which of the following statements is/are correct regarding the Maternity Benefit (Amendment) Act, 2017?

    1. Pregnant women are entitled to three months pre-delivery and three months post-delivery paid leave.
    2. Enterprises with creches must allow the mother a minimum of six crèche visits daily.
    3. Women with two children get reduced entitlements.

    Select the correct answer using the code given below.

    (a) 1 and 2 only

    (b) 2 only

    (c) 3 only

    (d) 1, 2 and 3

  • Square Kilometre Array Observatory

    The Square Kilometre Array Observatory (SKAO) Council held its maiden meeting and approved the establishment of the world’s largest radio telescope.

    Note all important telescopes in news and their features. Some of them are – Thirty Meter Telescope, Giant Metrewave Radio Telescope, Spitzer, Chandra etc.

    SKAO

    • It is a new intergovernmental organisation dedicated to radio astronomy and is headquartered in the UK.
    • At the moment, organisations from ten countries are a part of the SKAO.
    • These include Australia, Canada, China, India, Italy, New Zealand, South Africa, Sweden, the Netherlands and the UK.

    What are radio telescopes?

    • Unlike optical telescopes, radio telescopes can detect invisible gas and, therefore, they can reveal areas of space that may be obscured by cosmic dust.
    • Significantly, since the first radio signals were detected by physicist Karl Jansky in the 1930s, astronomers have used radio telescopes to detect radio waves emitted by different objects in the universe and explore it.
    • According to NASA, the field of radio astronomy evolved after World War II and became one of the most important tools for making astronomical observations since.

    The Arecibo telescope in Puerto Rico, which was the second-largest single-dish radio telescope in the world, collapsed in December 2020.

    Significance of SKA telescope

    • The telescope, proposed to be the largest radio telescope in the world, will be located in Africa and Australia whose operation, maintenance and construction will be overseen by SKAO.
    • Some of the questions that scientists hope to address using this telescope include the beginning of the universe, how and when the first stars were born and the life-cycle of a galaxy.
    • It would explore the possibility of detecting technologically-active civilizations elsewhere in our galaxy and understanding where gravitational waves come from.
    • As per NASA, the telescope will accomplish its scientific goals by measuring neutral hydrogen over cosmic time, accurately timing the signals from pulsars in the Milky Way.

  • [pib] Ropeways and Alternate Mobility Solutions to be under MoRTH

    The Ministry of Road Transport and Highways will, from now on, also look after the development of Ropeways and Alternate Mobility Solutions (AMS).

    Q.With growing mobility and diverse terrain across the country, it is imperative that all solutions be enabled and implemented. In this light, discuss various changes adopted by the Transport Ministry in this regard.

    Ropeways

    • A ropeway is a form of naval lifting device used to transport light stores and equipment across rivers or ravines.
    • It comprises a jackstay, slung between two sheers one at either end, from which is suspended a block and tackle, that is free to travel along the rope and hauled back and forth by inhauls.
    • An amendment to the Government of India (Allocation of Business) Rules, 1961 has been notified, to enable this step.

    Impacts of the move

    • The move is expected to give a boost to the sector, by setting up a regulatory regime and facilitating research and new technology to come into this sector.
    • This means that the Ministry will have responsibility for the development of ropeway and alternative mobility solutions technology, as well as construction, research, and policy in this area.
    • Formulation of the institutional, financial, and regulatory framework for the technology will also fall under the ambit of this move.

    Expected benefits

    • Last-mile connectivity for remote locations
    • Reducing congestion on mainstream roads
    • Chance to develop world-class ropeway infrastructure
    • Setting up of an organised  and dedicated rope-way and alternative mobility solutions industry
    • New technology, like CPT – Cable Propelled Transit coming to the sector
    • Setting safety norms for unregulated ropeways
    • Allowing freight and goods at remote stations
    • Regulating tariffs structure for the technology

  • [pib] Monpa Handmade Paper of Tawang

    PC: East Mojo

    The sale of the 1000-years old heritage Monpa handmade paper or “Mon Shugu” is quickly catching pace after a special mention by PM in his Mann ki Baat.

    Monpa Handmade Paper

    • Monpa paper is made from the bark of tree Shugu Sheng grown locally in Tawang and is identified by its distinctive translucent fibrous texture.
    • The paper is weightless but its natural fibres add great tensile strength to this paper making it apt for various artworks.
    • It has been used for writing Buddhist scriptures, manuscripts and for making prayer flags.
    • Writing on this paper is also known to be tamper-proof.

    Note: This paper is yet to be awarded the Geographical Indication (GI) tag.

    Revitalized by KVIC

    • Khadi and Village Industries Commission, which revived this ancient art at Tawang in Arunachal Pradesh on 25th December 2020.
    • It has made Monpa Handmade paper available online through its e-portal.
    • The revival of this art assumes significance as Monpa Handmade paper was once produced in every household in Tawang and the paper was exported to many countries like Tibet, Bhutan, Myanmar and Japan among others.
    • However, with the new technologies coming in, the handmade paper industry almost disappeared in the last 100 years.

  • [pib] KAPILA for patent awareness

    The Government has launched a campaign namely KAPILA for Intellectual Property Literacy and creating patent awareness, informed Union Ministry for Education to the Parliament.

    Remember one thing, ‘KAPILA’ Program is related to IP awareness. It sounds much like an animal husbandry related initiative.

    KAPILA Initiative

    • KAPILA is an acronym for Kalam Program for IP (Intellectual Property) Literacy and Awareness.
    • Under this campaign, students pursuing education in higher educational institutions will get information about the correct system of the application process for patenting their invention and they will be aware of their rights.
    • The program will facilitate the colleges and institutions to encourage more and more students to file patents.

    Why in news?

    • As many as 46,556 users have registered for the Union Government’s Intellectual Property Literary project.
    • This marks the success of the campaign.

  • No to vaccine nationalism, yes to global cooperation

    India has been supplying vaccines to other countries even as its first phase of vaccination covers the health care workers. At the same time, the selfishness of the advanced countries has been on full display by amassing the approved vaccines. The article deals with the issue of vaccine nationalism.

    What is vaccine nationalism

    • When a country manages to secure doses of vaccines for its own citizens or residents and prioritises its own domestic markets before they are made available in other countries it is known as ‘vaccine nationalism’.
    • This is done through pre-purchase agreements between a government and a vaccine manufacturer.
    • The advance purchase contracts made by some advanced countries for potential vaccines would vaccinate their population many times: the European Union, two times, the United States and the United Kingdom, four times, and Canada, six times.

    Impact on the SDGs

    • The reversal of progress on many Sustainable Development Goals, or SDGs, such as SDG 3 (“Ensure healthy lives and promote well-being for all at all ages) could affect the health of the world population, and global growth itself.
    • Even before COVID-19, projections have shown that 6% of the global population would be in extreme poverty, which has gone up by 71 million, thereby causing enormous challenges to SDG 1 (“End poverty in all its forms everywhere”).
    • According to estimates by the International Monetary Fund, over 50% of emerging markets and developing economies that were converging toward advanced economies per capita income over the last decade are expected to diverge over the 2020-22 period.

    India’s important role

    • While advanced countries have turned their back on the need of poor countries, India has taken a position that a significant percentage of the approved doses will be permitted for exports.
    • While its exports to neighbouring counties will be under grant mode, initial shipment of vaccines to least developed countries will be free of cost.
    • Brazil has received 2 million doses of vaccine from India (as of January 23).
    • While India is in its first phase of vaccination to cover health-care workers, exports from India are helping other countries also in initiating phase one of their vaccination programme — a gesture well-appreciated globally.
    • The ability to produce large volumes of vaccine at an affordable cost underlines India’s importance to developing countries when it comes to drug access.

    Need for coordinated global efforts

    • Due to the vaccine nationalism, the arguments of public good and global cooperation have been widely neglected.
    • Nevertheless, India’s approach only reinforces the need of having coordinated global efforts in bringing COVID-19 under control.
    • This response manifests India’s unstinted commitment to global development and has consolidated its name as the world’s pharmacy.

    COVAX Project: Unique case of global cooperation

    • The COVAX project is a global risk-sharing mechanism for pooled procurement and fair distribution of COVID-19 vaccines.
    • It is based on funding from high and middle-income countries.
    • Since high and middle-income countries are buying up large amounts of the vaccine directly from suppliers, the promise by COVAX to deliver 2 billion doses by the end of 2021 seems to face new challenges.
    • Since most of the vaccines are purchased from the global south [specifically, India and China] for developing nations, the COVAX project can draw new pathways for global development.
    • Most of these vaccines are cost-effective and affordable to the global south.

    Consider the question “What is vaccine nationalism? Examine the role played by India against the backdrop of vaccine nationalism.” 

    Conclusion

    The development of vaccines is a classic story of global cooperation between the North and the South. Unfortunately, the increasing nationalist tendencies of the democratic World during the pandemic have challenged the positive narrative on global cooperation.

  • Government set for fiscal push, RBI needs to do more

    The article analyses the key features of the Union Budget, including the increase in overall expenditure and jump in capital expenditure in FY22.

    Explaining the Rs 4.1 lakh crore jump in expenditure in FY21

    • The budget has moved clearly from off-balance-sheet funding [borrowing by FCI and arrears of fertiliser subsidy] to headline-deficit funding.
    • That possibly explains the surge in fiscal deficit in the current fiscal at 9.5 per cent of GDP.
    • However, by excluding such off-balance-sheet funding, the headline-fiscal deficit declines to 8.6 per cent of GDP. 
    • A closer look at the food subsidy, juxtaposed with outstanding FCI liabilities shows that Rs 1.2 lakh crore (0.6 per cent of the GDP) is a pure accounting shift, while the rest Rs 1.9 lakh crore is new spending this fiscal.
    • Hence, the incremental spending in FY21 comes to around Rs 2.9 lakh crore (net of Rs 1.2 lakh crore/ 1.5 per cent of the GDP).
    • Interestingly, the government has also spent an additional Rs 62,638 crore on fertiliser subsidy, the entire amount of which has been front-loaded.

    Focus on capital expenditure in FY22

    • Increase in the expenditure in FY22 is noticeable as the pie has decisively shifted towards capital expenditure.
    • The budgeted raise in FY22 is 4.6 times larger than the trend increase in the last two decades. 
    • The proposed capital expenditure amounts to 3.4 per cent of the GDP if we also include allocation for capital expenditure for autonomous bodies.
    • Assuming an Incremental Capital Output Ratio (ICOR) of 4.5, one can expect a GDP growth contribution of 0.8 per cent on account of the capital expenditure.
    • The other number in the budget that deserves admiration is the significant decline in extra budgetary resources of the government and PSUs. All this augurs well even for rating agencies if we go by purely fiscal transparency as a rule.

    Steps to clean up NPAs in the banking sector

    • The most notable development in the financial system is announcement of setting up an Asset Reconstruction Company (ARC) and an Asset Management Company (AMC).
    • The approach is to set up an AMC, which in partnership with an ARC, takes over large stressed assets ( approximately Rs 3.5 lakh crore) spread across multiple banks that have a clear potential for turnaround.
    • An operational turnaround of the asset creates value for the overall system.
    • The AMC/AIF-led approach could enable a move towards true price discovery, consolidating debt into one single entity ensuring faster decision-making, freeing up blocked capital/funds and an operational turnaround of assets.
    • A better price discovery could be ensured by having an independent investment committee comprising of senior management professionals.

    Increase in FDI limit in insurance sector

    • The Union budget also has a proposal to increase the FDI limit in insurance companies to 74 per cent from the present 49 per cent, with Indian management control.
    • It is expected that fresh capital will bring a new wave in technical know-how, innovation, and new products to the advantage of consumers, pushing up insurance penetration in the country.
    • However, we must ensure that foreign investors become interested in the Indian insurance sector as the current FDI used limit is at 33.8 per cent in private insurers.

    Role of RBI

    • With the government set for a fiscal push, the baton has passed to the RBI.
    • Overall, monetary and fiscal policies need ideal co-ordination for macroeconomic management.
    • If the central bank pursues its monetary objectives by not accommodating debt financing in its strategy, the macroeconomic outcome may be worse for both the fiscal and monetary authorities, as well as for the economy.
    • Fortunately, the RBI and government have worked in perfect harmony during the pandemic.
    • As it continues, we can have a stable interest rate regime which will be rewarding for all, particularly the government.

    Conclusion

    The Union Budget for FY22 is a budget to consolidate (C), spend (S) and revive (R) and shows that the government is set for fiscal push. Now, the baton has passed to the RBI.

    Back2Basics: What Is the Incremental Capital Output Ratio (ICOR)?

    • The incremental capital output ratio (ICOR) is a frequently used tool that explains the relationship between the level of investment made in the economy and the consequent increase in the gross domestic product (GDP).
    • ICOR indicates the additional unit of capital or investment needed to produce an additional unit of output.