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  • Finance Commission

    • The report of the Fifteenth Finance Commission, along with an Action Taken Report, was tabled in Parliament.
    • The Commission, headed by N K Singh, had submitted its Report to the President in December 2019.
    • The government had accepted the recommendations of the Commission “in substantial measure a/c to FM.

    The Finance Commission and its purpose

    • Article 280 of the Constitution requires that a Finance Commission be constituted to recommend the distribution of the net proceeds of taxes between the Centre and states, and among the states.
    • Much has changed since the First Commission was set up in November 1951 under the Chairmanship of K C Neogy, a former member of the Constituent Assembly and diwan of a princely state.
    • The President has appointed 14 more Commissions since then.

    Why need Finance Commission?

    • The framers of the Constitution were seeking to address the vertical imbalance between the taxation powers and expenditure and responsibilities of the federal government and the states, and the horizontal imbalance, or inequality, between states that were at different stages of development.
    • Ensuring inclusiveness is, therefore, a key mandate of the Finance Commission.
    • That means assigning weights to things like population, the fiscal distance between the top ranked states and the others, etc.
    • It is not that the best-performing state will be allocated the highest share — even if delivery execution and governance are better — rather, the effort will be to narrow the development gap between states.

    Constitution of the Finance Commission

    • The Finance Commission Rules, 1951, lay down the criteria for being members of the constitutional body.
    • Members:
    1. those having special knowledge of finance and accounts of government with wide knowledge and experience in financial matters and in administration,
    2. or with special knowledge of economics, and
    3. those who have been qualified to be appointed as a judge of a High Court

    Notable members

    • In the years following the reforms of the 1990s, Commissions have been headed by reputed economists and administrators — from A M Khusro, who headed the Eleventh Finance Commission, to Chakravarthi Rangarajan, Vijay Kelkar, and Y V Reddy, who were Chairmen of subsequent Commissions.
    • Senior politicians like K Brahmananda Reddy, Y B Chavan and N K P Salve had helmed earlier Commissions.
    • Before N K Singh, an economist and career administrator who subsequently joined politics, the last politician in this role was K C Pant, who then went on to be Deputy Chairman of the Planning Commission.

    Changing role of the Finance Commission

    • What has changed dramatically since the 1950s, when the First Commission presented its recommendations on the transfer of resources between the Centre and the states, is the scale of distribution of tax proceeds.
    • From 10% of the total tax receipts of the Centre in 1950, it rose to a record 42% after the recommendations of the Fourteenth FC headed by Y V Reddy — a share that made previous awards look conservative, and sat well with the spirit of cooperative federalism.
    • The Fifteenth FC has recommended that this allocation be reduced by a percentage point to 41% in order to meet the security and special needs of the erstwhile state of Jammu and Kashmir.
    • The other significant change has been in the equation between the central and state governments as a result of the recommendations of the Twelfth FC which reshaped lending by the federal government to states.
    • The Fourteenth Commission recommended the creation of a Fiscal Council; the Thirteenth had set out detailed measures on implementing GST with a grand bargain for states.

  • [pib] National Mission on Quantum Technologies & Applications

    The Finance Minister in budget 2020 has announced a National Mission on Quantum Technologies & Applications (NM-QTA).

    What is Quantum Technology?

    • Quantum Technology is based on the principles of quantum theory, which explains the nature of energy and matter on the atomic and subatomic level.
    • It concerns the control and manipulation of quantum systems, with the goal of achieving information processing beyond the limits of the classical world.
    • Its principles will be used for engineering solutions to extremely complex problems in computing, communications, sensing, chemistry, cryptography, imaging and mechanics.
    • This key ability makes quantum computers extremely powerful compared to conventional computers when solving certain kinds of problems like finding prime factors of large numbers and searching large databases.

    What is Quantum Mechanics?

    • It is a fundamental theory in physics which describes nature at the smallest – including atomic and subatomic – scales.
    • At the scale of atoms and electrons, many of the equations of classical mechanics, which describe how things move at everyday sizes and speeds, cease to be useful.
    • In classical mechanics, objects exist in a specific place at a specific time.
    • However, in quantum mechanics, objects instead exist in a haze of probability; they have a certain chance of being at point A, another chance of being at point B and so on.

    About NM-QTA

    • The mission will function under the Department of Science & Technology (DST).
    • It will be able address the ever increasing technological requirements of the society, and take into account the international technology trends.
    • The mission will help prepare next generation skilled manpower, boost translational research and also encourage entrepreneurship and start-up ecosystem development.

    Why such mission?

    • Quantum technologies are rapidly developing globally with a huge disruptive potential.
    • The range of quantum technologies is expected to be one of the major technology disruptions that will change entire paradigm of computation, communication and encryption.
    • It is perceived that the countries who achieve an edge in this emerging field will have a greater advantage in garnering multifold economic growth and dominant leadership role.
    • It has become imperative both for government and industries to be prepared to develop these emerging and disruptive changes.
    • It will establish standards to be applied to all research and help stimulate a pipeline to support research and applications well into the future.

    Also read: https://www.civilsdaily.com/news/quantum-supremacy/

  • [pib] Draft National Logistics Policy

    The Union Minister of Commerce and Industry reviewed the draft National Logistics Policy and the proposed action plan for implementation of the policy prepared by the Department of Logistics, Ministry of Commerce and Industry.

    The key feature of the draft policy

    • The draft National Logistics Policy has been prepared in consultation with the Ministries of Railways, Road Transport and Highways, Shipping and Civil Aviation.
    • Forty-six Partnering Government Agencies (PGAs)
    • Inputs were analysed in detail for consideration in the Policy.
    • Vision and Objectives for Logistics in India: To drive economic growth and trade competitiveness of the country through a truly integrated, seamless, efficient, reliable and cost-effective logistics network, leveraging best in class technology, processes and skilled manpower.
    • Key objectives of the national logistics policy:  Given the pivotal role of the logistics sector in the development of the economy and the need to incorporate learnings from global best practices, the policy outlines an ambitious set of objectives.

    The following are some of the key objectives for logistics in India, to be achieved in the next five years:

    1. Creating a single point of reference for all logistics and trade facilitation matters in the country which will also function as a knowledge and information sharing platform

    2. Driving logistics cost as a % of GDP down from estimated current levels of 13-14% to 10% in line with best-in-class global standards and incentivize the sector to become more efficient by promoting integrated development of logistics

    Objectives of the Logistics Policy

    • Creating a National Logistics e-marketplace as a one-stop marketplace. It will involve simplification of documentation for exports/imports and drive transparency through digitization of processes involving Customs, PGAs etc in regulatory, certification and compliance services
    • Creating a data and analytics centre to drive transparency and continuous monitoring of key logistics metrics
    • Encouraging industry, academia and government to come together to create a logistics Center of Excellence, and drive innovation in the logistics sector
    • Creating and managing on an ongoing basis, an Integrated National Logistics Action Plan which will serve as a master plan for all logistics-related development.
    • Providing an impetus to trade and hence economic growth by driving competitiveness in exports
    • Doubling employment in the logistics sector by generating additional 10-15 million jobs and focus on enhancing skills in the sector and encouraging gender diversity
    • Improve India’s ranking in the Logistics Performance Index to between 25 to 30
    • Strengthening the warehousing sector in India by improving the quality of storage infrastructure including specialized warehouses across the country
    • Reducing losses due to agri-wastage to less than 5% through effective agri-logistics
    • Providing impetus to the MSME sector in the country through a cost-effective logistics network
    • Promoting cross-regional trade on e-commerce platforms by enabling a seamless flow of goods
    • Encouraging the adoption of green logistics in the country

    Policy thrust areas

    This policy defines the key thrust areas for logistics in India, which will be the focus of the relevant ministries as well as act as guidance to the state governments. The prioritized focus areas for logistics are detailed below:

    • Focusing on critical projects to drive an optimal modal mix and to enable first mile and last-mile connectivity
    • Driving the development of Multi-Modal Logistics Parks (MMLPs)
    • Driving interventions to reduce logistics cost and promote logistics efficiency for movement of key commodities
    • Creating a single-window Logistics e-marketplace
    • Setting up a Logistics Data and Analytics Center
    • Creating a Center of Trade facilitation and Logistics excellence (CTFL) and leveraging the expertise of multilateral agencies
    • Creating an Integrated National Logistics Action Plan and align with respective state development plans
    • Support strengthening of the warehousing sector
    • Enhancing transport and rolling stock infrastructure
    • Streamlining EXIM processes to promote trade competitiveness
    • Reducing dwell time for interstate cargo movement by road
    • Promoting standardization in the logistics sector
    • Ensuring seamless movement of goods at Land Customs Stations (LCS) and Integrated Check Points (ICP)
    • Generating employment, enhancing skilling and encouraging gender diversity in the logistics sector
    • Setting up a Startup acceleration fund

    Funding for logistics initiatives

    A non-lapsable Logistics fund will be created, to drive progress against the key thrust areas. The Logistics fund can be deployed for the following

    • Providing viability gap funding for select MMLP projects, first and last-mile projects and projects for poorly-serviced remote areas.
    • Incentivizing select logistics skilling programs and training institutes
    • Setting up a start-up acceleration fund to incentivize the development of new technology in logistics particularly the farm to plate space
    • Creating the Center for Trade Facilitation and Logistics Excellence (CTFL)  Setting up a big data-enabled logistics data hub and analytics centre
    • Creating a single-window logistics e-marketplace

    Institutional Framework & Governance for Logistics

    For this purpose, four committees/councils will be constituted:

    • National Council for Logistics, chaired by the Prime Minister
    • Apex inter-ministerial Committee, chaired by the Minister of Commerce and Industry
    • India Logistics Forum chaired by the Commerce Secretary with representation from key industry/business stakeholders and academia.
    • Empowered task force on logistics will be created, as a standing committee chaired by the head of the Logistics Wing.

     

  • Archimedes Principle

    Recently, Archimedes Principle was used in Jharkhand to rescue baby elephant stuck in a well. The rescue team filled the well with water using motorized pipes, after which the struggling elephant floated to the top and was able to climb out through a ramp placed for it.

    What is the ‘Archimedes Principle’?

    • In physics, the Archimedes Principle refers to the law of buoyancy (the ability or tendency of something to float in water or other fluids).
    • According to the principle, when an object is completely or partially submerged in a fluid, whether gas or liquid, it is acted upon by an upward force (buoyancy) equal to the weight of the fluid it has displaced.
    • The force acting downward on the object is the weight of the object. The upward force is the one given by the Archimedes Principle.
    • The difference between the two forces is the net force acting on the object.
    • If the buoyant force is more than the weight, the object rises; if it is less, the object sinks.
    • If the net force is zero, the object remains in place, and neither rises nor sinks.

  • Indian Institute of Heritage and Conservation

    The Union Govt. has proposed to set up an Indian Institute of Heritage and Conservation under the Ministry of Culture, and develop five archaeological sites as “iconic sites” with onsite museums in Rakhigarhi (Haryana), Hastinapur (Uttar Pradesh), Sivsagar (Assam), Dholavira (Gujarat) and Adichanallur (Tamil Nadu).

    Rakhigarhi

    • Rakhigarhi in Haryana’s Hissar district is one of the most prominent and largest sites of the Harappan civilization.
    • It is one among the five known townships of the Harappan civilization in the Indian subcontinent.
    • In one of the excavations, the skeletal remains of a couple were discovered.
    • Interestingly, of the 62 graves discovered in Rakhigarhi, only this particular grave consisted of more than one skeletal remains and of individuals of the opposite sex together.

    Hastinapur

    • Excavations at Hastinapur, in Meerut district of Uttar Pradesh, were led by Dr B B Lal, who was at the time Superintendent of the Excavations Branch of the ASI.
    • Hastinapur finds mention in the Mahabharata and the Puranas.
    • One of the most significant discoveries made at this site was of the “new ceramic industry”, which was named the Painted Grey Ware, which as per the report represented the relics of the early Indo-Aryans.
    • The sites of Hastinapur, Mathura, Kurukshetra, Barnawa, etc., are identifiable with those of the same name mentioned in the Mahabharata.
    • If that be so, the Painted Grey Ware would be associated with the early settlers on these sites, viz. The Pauravas, Panchalas, etc., who formed a part of the early Aryan stock in India.
    • Such an association may also explain the synchronism between the appearance of the Painted Grey Ware in the Ghaggar-Sutlej valleys and the probable date of the arrival of the Aryans in that area.”

    Sivasagar

    • In Sivasagar, excavations at the Karenghar (Talatalghar) complex between 2000 and 2003 led to the discovery of buried structures in the north-western and north-eastern side of the complex.
    • Among the structural remains found at the site were ceramic assemblages including vases, vessels, dishes, and bowls, etc. Terracotta smoking pipes were also found.
    • Another excavation site in Sivasagar district is the Garhgaon Raja’s palace. Excavation at this site was conducted during 2007-2008.
    • A burnt-brick wall running in north-south orientation was found, along with the remains of two huge circular wooden posts.

    Dholavira

    • Dholavira in Gujarat is located in the Khadir island of the Rann of Kutch, and like Rakhigarhi is one of the sites where the remains of the Harappan civilization have been found.
    • Dholavira is unique because remains of a complete water system have been found here.
    • The people who lived there for an estimated 1,200 years during the Harappan civilization are noted for their water conservation system using rainwater harvesting techniques in an otherwise parched landscape.

    Adichnallur

    • Adichnallur lies in the Thoothukudi district of Tamil Nadu.
    • The urn-burial site was first brought to light during a “haphazard excavation” by a German archaeologist in 1876. Following this, an Englishman Alexander Rae excavated the site between 1889 and 1905.
    • Over the years, the site has gained attention because of three important findings: the discovery of an ancient Tamil-Brahmi script on the inside of an urn containing a full human skeleton, a fragment of a broken earthenware, and the remains of living quarters.

  • Poets quoted in Budget Speech

    Finance Minister has quoted four poets in her Budget speech: Pt. Dinanath Nadim, Avvaiyar, Thiruvalluvar and Kalidas, a sweep from Tamil Nadu to Kashmir, from ancient to contenporary India.

    Dinanath Nadim

    • The Kashmiri nationalist poet Dinanath Nadim was at the centre of Kashmir’s progressive movement, especially in the 1930s, 40s and 50s.
    • Nadim was born in 1916, and passed away in 1988. Nadim wrote in Kashmiri, Hindi and Urdu, and inspired a powerful tradition of Kashmiri poetry.
    • Nadim received the Sahitya Akademi award in 1986 for his opera Shuhul Kull (The Shady Tree).
    • Among his other well known works are Vitasta (Jhelum River), Safar Taa Shehjaar (The Journey And The Shade), Heemaal Taa Naaegrai (Heemaal and Naagraaj), and Bombur Taa Yamberzal (The Bumble Bee And The Narcissus Flower).

    Avvaiyar

    • Avvaiyar translates to “Respected Woman”, and the title was used by several woman poets who contributed to Tamil literature during different periods of time.
    • In the Budget’s section on “Aspirational India”, Sitharaman said, “Our government shall encourage balanced use of all kinds of fertilizers including the traditional organic and other innovative fertilizers.
    • This is a necessary step to change the prevailing incentive regime, which encourages excessive use of chemical fertilisers.”
    • She quoted from Aaathichoodi’s verse 81 which translate to “first tend to till one’s land and then eat. One must eat only after work.”

    Thiruvalluvar

    • Thiruvalluvar is fondly referred to as Valluvar by Tamils. His ‘Tirukkural’, a collection of 1,330 couplets (‘kurals’ in Tamil), are an essential part of every Tamil household.
    • It holds importance in the same way the Bhagavad Gita or the Ramayana are in traditional North Indian Hindu households.
    • He is an essential anchor for Tamils in tracing their cultural roots; Tamils are taught to learn his couplets word-for-word, and to follow his teachings in their day-to-day living.
    • FM quoted Thiruvalluvar: “Pini Inmai Selvam Vilaivu Inbam Emam Ani Enba”, which loosely translates to having the “five jewels” required for a country that is without illness, with wealth, with good crops, with happiness, as well as safety and security.

    Kalidas

    • Kalidas, the legendary Sanskrit scholar, is believed to have lived during the middle of the fourth and early fifth centuries AD, during the reigns of Chandragupta II Vikramaditya and Kumaragupta.
    • Raghuvamsa, from which FM quoted, is one of two long epic poems written by Kalidas.
    • She mentioned the 18th verse: “Surya, the Sun, collects vapour from little drops of water. So does the King. They give back copiously. They collect only for people’s wellbeing.”

  • Species in news: Flame-throated Bulbul

    The flame-throated bulbul, also called the Rubigula, was chosen as the mascot of the 36th National Games to be held in Goa. It is the State bird of Goa.

    Flame-throated Bulbul

    IUCN status: Least Concern

    • The Flame-throated Bulbul is endemic to southern peninsular India where it is locally distributed in southern Andhra Pradesh, eastern Karnataka, Goa, Orissa, eastern Kerala and northern Tamil Nadu.
    • It prefer habitats like rocky, scrub-covered hills mostly in the Eastern Ghats and central peninsular India but also in some places in the Western Ghats.
    • It is a Schedule – IV bird under the Wildlife (Protection) Act, 1972.

  • [op-ed of the day] A sneeze, a global cold and testing times for China

    Context

    The World Health Organization (WHO) has declared the coronavirus outbreak a global emergency, as the outbreak continues to spread outside China.

    Coronavirus outbreak and Chinese response

    • What is coronavirus? Normally, coronavirus is a large family of viruses that are often the source of respiratory infections, including the common cold.
      • A small number of common infecting virus: Most of the viruses are common among animals and only a small number of them infect humans.
      • Mutation of animal base virus: Sometimes, an animal-based coronavirus mutates and successfully finds a human host.
    • Dangers of rapid urbanisation: Rapid urbanisation that forces animals and humans into closer proximity (as in the “wet market” in Wuhan) creates a perfect petri dish from where such zoonotic outbreaks can originate.

    Concern for India

    • Reported case in Nepal and cause of concern for India: For India, the most critical is cases being reported in Nepal since India and Nepal share an open border though so far.
    • All tests undertaken in India have been negative.
    • A tweet by the Ministry of Health and Family Welfare on January 30 said that one positive case of a novel coronavirus patient

    Understanding the new virus

    • The possible mode of transmission: According to the World Health Organization, during previous outbreaks due to other coronavirus, human-to-human transmission occurred through droplets, contact and fomites (objects or materials which are likely to carry infection, such as clothes, utensils, and furniture).
    • This suggests that the transmission mode of the 2019-nCoV can be identical.
    • The transmission even in incubation period: More significant is the new understanding that the virus is contagious even during incubation, that is even before a patient exhibits any symptoms.
      • This characteristic amplifies

    Experience from the past outbreaks

    • Comparison with SARS: Comparisons are being drawn the Severe Acute Respiratory Syndrome) outbreak in 2002-03.
      • Zoonotic case: SARS is also a zoonotic case, part of the coronavirus family with clues pointing to horseshoe bats in China as the likely source.
      • Late reporting by China in SARS:
      • The first incidents were reported in Guangdong province in November 2002 but WHO was officially informed only after three months.
    • Different response this time: Comparison with SARS: Comparisons are being drawn the Severe Acute Respiratory Syndrome) outbreak in 2002-03.
      • Zoonotic case: SARS is also a zoonotic case, part of the coronavirus family with clues pointing to horseshoe bats in China as the likely source.
      • Late reporting by China in SARS: The first incidents were reported in Guangdong province in November 2002 but WHO was officially informed only after three months.
      • Different response this time: This time around, the Chinese government has been more open but the question being asked is whether it has been open enough?
      • The difference in time to develop vaccine: For SARS, it took 20 months from the genome sequencing to the first human vaccine trials; for the 2019-nCoV, authorities in the U.S. are working on a deadline of 90 days.

    Lessons from Kerala in Nipah outbreak

    • Managing an outbreak with few casualties: Kerala managed to curtail the Nipah outbreak with few casualties.
      • Nipah is also zoonotic and made the jump from fruit bats to humans.
      • Though there were 17 deaths in India, effective quarantine measures by local authorities prevented the spread.
    • Infectious disease on the rise: Infectious diseases including those of the zoonotic variety are on the rise in India.
      • In addition, regions in India suffer from seasonal outbreaks of dengue, malaria and influenza strains.
      • The nation-wide disease surveillance programme needs to be strengthened.

    Conclusion

    India should brace itself for the possible outbreak of infectious diseases and frame policies to deal with such outbreaks in fast and effective ways.

  • [op-ed snap]Partners in action

    Context

    Both India and the UK are exploring how best to develop the technology and investment needed to spur the transition from fossil to renewable fuels and make this a beneficial trajectory for everyone.

    Areas of collaboration with the UK

    • Resilience to climate change: To build resilience to climate risks, the U.K. is working with the Mahatma Gandhi National Rural Employment Act to build flood defences and river structures to encourage aquifer replenishment.
    • Monsoon forecasting: Together with India’s Ministry of Earth Sciences, we are gathering land, sea and atmospheric data to help deliver a decisive step forward in monsoon forecasting.
    • Electric mobility: On electric mobility, a major joint venture between UK’s EO Charging and India’s Yahhvi Enterprises will deliver world-class smart charging infrastructure for electric vehicles across India.
    • Finance of Green Growth Equity Fund: On finance, the U.K. government committed 240 million pounds of anchor capital in the Green Growth Equity Fund.
      • Its first investment going to Ayana Renewable Power, which is developing 800MW of solar generation capacity.

    India’s efforts to tackle climate change

    • India’s size and ecological diversity have placed it on the frontlines of global warming.
    • India walking the talk on climate change: It is on course to deliver the target of 40 per cent electricity generation from non-fossil fuels by 2030.
    • ISA: India has already demonstrated this personal commitment on the world stage with the India-led International Solar Alliance.
    • CDRI: India also announced the global Coalition for Disaster Resilient Infrastructure, both of which the UK a part of.
    • India and the UK can also work together on–
      • Resilience and adaption.
      • Clean energy.
      • Green finance and nature-based solutions.
      • Infrastructure development.
      • Sustainable energy and smart cities.

    Conclusion

    India and the UK need to make sure that the present partnership on climate and the environment go from strength to strength in the future.

  • India abroad: On diplomats firefighting negative references to India

     

    Context

    The European Union Parliament’s discussion recently on India’s Citizenship (Amendment) Act or CAA, is a cause of concern.

    Reactions in the West over the act

    • In the U.K. and the U.S.:  Parliamentarians in the U.K. and U.S. Congressmen, including Democratic presidential contenders, have asked India to “reconsider” the law and to “engage” with the protesters.
    • Resolution in the EU parliament: The EU parliamentarians went a step further.
      • Six critical resolutions: The EU parliament put out six different and extremely critical resolutions.
      • One of the six articles spoke of the possible risk by the CAA and the proposed National Register of Citizens, of creating “the largest statelessness crisis in the world”.
      • A sixth less critical resolution, but which worried about the “brutal crackdown” on protesters, was dropped.
    • Diplomatic outreach by India
      • After India’s intense diplomatic outreach, the parliamentarians agreed to put off voting on the resolution until after External Affairs Minister and the PM visit Brussels.
      • The hope is that with the U.K. scheduled to leave the EU on January 31, interest in the anti-CAA resolutions will wane.
      • Finally, the government has held that the CAA is India’s internal law.

    India’s Reaction

    • The sovereign right of India: While the government is right about India’s sovereign right, it would be deluding itself if it thinks any of these explanations are passing muster with the EU parliamentarians.
      • Dilution of case against foreign interference: The government diluted its own case against foreign interference when it facilitated a visit by EU MEPs to Srinagar last year.
      • By engaging the EU MEPs to avoid a vote in the EU Parliament this week, and offering to explain the reasons behind CAA, the government is diluting it further.
    • Need to stop reference to Pakistan: New Delhi must also consider the impact of its repeated reference to Pakistan as the sole mover of any motion against it at world legislatures and fora.
      •  626 MEPs of the total 751 were members of the groups that originally drafted the six resolutions, and it seems unlikely that Islamabad could have achieved such a majority.

    Diplomatic toll

    • Cumulative toll: The government must reflect on the cumulative toll on its diplomatic heft following international alarm over the CAA, plans for an NRC and the dilution of Article 370.
    • Instead of pushing a positive agenda for India or handling global challenges, Indian diplomats seem to be overwhelmed keeping out any negative references to India at official fora.

    Conclusion

    India must take steps to address the concerns raised at the global level over the act and also prepare itself for the possible impact of such actions.