Why in the News?
INS Tushil, a multi-role stealth guided missile frigate, is set to be commissioned by the Indian Navy at Kaliningrad, Russia.
About INS Tushil:
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Development of INS Tushil:
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Archives: News
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Commissioning of INS TUSHIL
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Finance Commission – Issues related to devolution of resources
States and the challenge before the Finance Commission
Why in the News?
Recently, Tamil Nadu hosted the Sixteenth State Finance Commission, highlighting the need for fair resource allocation to performing states and addressing fiscal imbalances between the Union and states.
What are the primary challenges faced by State Finance Commissions?
- Vertical Fiscal Imbalance: There is a significant disparity in revenue-raising capabilities between the Union and state governments. The Union holds greater powers to generate revenue, while states bear most of the expenditure responsibilities. This imbalance has led to insufficient funds for states to meet developmental needs.
- Inequitable Resource Distribution: Despite efforts to achieve equitable redistribution through vertical and horizontal devolution, actual outcomes often fall short of expectations.
- For instance, the Fifteenth Finance Commission’s effective devolution was only 33.16% of the Union’s gross tax revenue, despite a declared share of 41%.
- Inadequate Devolution: The increasing reliance on cess and surcharges by the Union government has further constrained the financial resources available to states. This trend undermines the intended fiscal autonomy that states require to implement local schemes effectively.
- Demographic and Urbanization Challenges: Progressive states like Tamil Nadu face unique challenges related to ageing populations and rapid urbanisation, which strain their fiscal capacities while necessitating increased investment in infrastructure and services.
How can compliance with constitutional mandates be improved?
- Strengthening Legal Frameworks: Ensuring that SFCs operate within a robust legal framework that mandates transparency and accountability can enhance compliance with constitutional directives. This includes clearer guidelines on resource allocation and devolution processes.
- Public Disclosure: Mandating public disclosure of financial data and project details in accessible formats can foster greater transparency and allow for citizen engagement in governance, thereby ensuring that SFCs adhere more closely to their constitutional roles.
- Participatory Budgeting: Encouraging participatory budgeting practices can help align state financial decisions with local needs, ensuring that resources are allocated in a manner that reflects constitutional mandates for equitable development across regions.
What reforms are necessary to enhance the effectiveness of SFCs?
- Revising Devolution Principles: A reassessment of the principles governing vertical and horizontal devolution is essential to create a fairer distribution system that recognizes both the needs of less-developed states and the contributions of high-performing states like Tamil Nadu.
- Augmenting State Resources: Increasing the share of gross central taxes allocated to states from 41% to at least 50% could provide states with greater fiscal autonomy, allowing them to fund locally relevant initiatives effectively.
- Focus on Growth Incentives: Developing a progressive resource allocation methodology that rewards high-performing states can stimulate economic growth while ensuring that less-developed states also receive adequate support for their development needs.
- Addressing Urbanization Needs: Specific reforms aimed at addressing urbanization challenges—such as earmarking funds for infrastructure development—will be crucial for progressive states experiencing rapid urban growth.
Conclusion: State Finance Commissions must address fiscal imbalances, enhance devolution principles, and prioritise growth incentives to empower states. This is vital for achieving Sustainable Development Goals (SDGs) through equitable and inclusive development.
Mains PYQ:
Q Discuss the recommendations of the 13th Finance Commission which have been a departure from the previous commissions for strengthening the local government finances. (UPSC IAS/2013)
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Oil and Gas Sector – HELP, Open Acreage Policy, etc.
How Oilfields Amendment Bill aims to delink petroleum, mineral oil production from mining activities
Why in the News?
The Rajya Sabha passed the Oilfields (Regulation and Development) Amendment Bill, 2024, aimed at boosting domestic petroleum and mineral oil production while encouraging private investment to reduce reliance on imports.
What is the Oilfields Bill?
- The Oilfields Bill amends the Oilfields (Regulation and Development) Act of 1948, which originally governed both oil and mineral operations. The amendment seeks to delineate the regulation of petroleum from mining activities, aligning it more closely with contemporary needs in the oil and gas sector. By doing so, it aims to boost domestic production and reduce reliance on imports.
What are the major proposed changes?
- Definition of Mineral Oils: The Bill expands the definition of “mineral oils” to include naturally occurring hydrocarbons such as crude oil, natural gas, coal bed methane, and shale gas/oil. However, it explicitly excludes coal, lignite, and helium from this definition.
- Introduction of Petroleum Leases: The Bill replaces references to “mining leases” with “petroleum leases,” defining these leases as agreements for various activities including exploration and production of mineral oils. Existing mining leases will remain valid under this new framework.
- Decriminalization of Offences: The Bill removes criminal penalties for violations of the Oilfields Act, replacing them with financial penalties. For instance, violations that previously could lead to imprisonment will now incur fines up to ₹25 lakh, with additional daily penalties for ongoing violations.
- Central Government Powers: The Bill empowers the central government to create rules regarding the granting and regulation of petroleum leases, including aspects like environmental protection and dispute resolution mechanisms.
- Encouragement of Private Investment: It includes provisions aimed at attracting private investment into the sector by ensuring stable lease terms and clarifying regulatory frameworks.
What are the criticisms and concerns?
- Impact on State Rights: Critics, including members from the DMK party, argue that the Bill undermines state rights regarding taxation on mining activities. They fear that redefining leases could shift regulatory power away from states to the central government, potentially affecting state revenue from royalties.
- Legal Challenges: There are concerns that framing petroleum operations under a different legal category could lead to conflicts with existing judicial rulings that affirm state powers over mining taxes. A recent Supreme Court ruling emphasized that states have exclusive rights to tax mining activities.
- Environmental Concerns: Opposition members have raised alarms about the potential environmental impacts of allowing greater private sector involvement in petroleum extraction. They advocate for prioritizing public sector companies like ONGC over private entities.
Way forward:
- Balanced Federal Approach: Establish a collaborative mechanism between the Centre and states to address concerns over taxation and royalties, ensuring equitable revenue sharing while maintaining clear regulatory roles.
- Sustainable Exploration Framework: Mandate robust environmental safeguards and prioritize public sector leadership alongside private investment to balance economic growth with ecological preservation.
Mains PYQ:
Q “In spite of adverse environmental impact, coal mining is still inevitable for Development”. Discuss. (UPSC IAS/2017)
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Festivals, Dances, Theatre, Literature, Art in News
Nagaland’s Hornbill Festival
Why in the News?
This year’s edition of the Hornbill Festival has sparked a significant public debate regarding the relaxation of Nagaland’s liquor prohibition law, a subject that has been contentious for over three decades.
What is Hornbill Festival?
- The Hornbill Festival is a celebration held every year from 1 – 10 December, in Kohima, Nagaland.
- The festival was first held in the year 2000.
- It is named after Indian hornbill (Buceros bicornis), the large and colourful forest bird which is displayed in the folklore of most of the state’s tribes.
- Festival highlights include the traditional Naga Morungs exhibition and the sale of arts and crafts, food stalls, herbal medicine stalls, flower shows and sales, cultural medley – songs and dances, fashion shows etc.
- It is a platform for showcasing the major cultural festivals of 14 recognised Naga tribes, each with its unique traditions and practices.
- About Great Indian Hornbill:
- IUCN Status: Vulnerable (upgraded from Near Threatened in 2018), CITES: Appendix I
- Known as great pied hornbill, it is one of the largest hornbill species.
- Can live up to 50 years in captivity.
- Primarily fruit-eating, but also preys on small mammals, reptiles, and birds.
- Revered in many tribal cultures and rituals due to its size and colour.
- Found mainly in India, especially in the Western Ghats and Nilgiris.
- Nilgiris North Eastern Range supports some of the highest densities of nesting birds.
- Known as ‘forest engineers’ or ‘farmers of the forest’, they play a key role in seed dispersal of tropical trees, indicating the health and balance of their forest ecosystems.
What is the Nagaland Liquor Total Prohibition (NLTP) Act 1989?
- The NLTP Act is a law enacted by the Government of Nagaland that prohibits the production, sale, and consumption of alcohol in the state.
- The Act is one of the most stringent liquor prohibition laws in India, and its core features are as follows:
- Key Features of NLTP Act 1989:
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- Complete Ban on Alcohol: The NLTP Act bans the production, sale, and consumption of all forms of alcoholic beverages, including beer, wine, and spirits. This includes both local (like rice beer) and commercial alcohol.
- Exceptions: There are some exceptions under the law, such as alcohol being allowed for medical or scientific purposes and in certain regulated settings, like special licenses for non-local tourists during specific events (e.g., the Hornbill Festival).
- Support from Religious Groups: The Act has received strong support from Christian church bodies, which constitute a majority in the state, as they view alcohol consumption as morally unacceptable and harmful to community life.
Role of Alcohol in the Hornbill Festival:
- The Hornbill Festival is often seen as an exception to the state’s liquor prohibition.
- Thutse (local rice beer) is traditionally consumed during the festival, and according to academic Theyiesinuo Keditsu, the Hornbill Festival is the only time in the year when the state permits the open sale and consumption of alcohol, including Thutse.
PYQ:
[2016] In which of the following regions of India are you most likely to come across the ‘Great Indian Hornbill’ in its natural habitat?
(a) Sand deserts of northwest India
(b) Higher Himalayas of Jammu and Kashmir
(c) Salt marshes of western Gujarat
(d) Western Ghats
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Higher Education – RUSA, NIRF, HEFA, etc.
[pib] National Library Mission
Why in the News?
The Union Minister for Culture and Tourism has provided information regarding the National Mission on Libraries (NML) Scheme in Rajya Sabha.
About National Mission on Libraries (NML):
Establishment Launched in 2012 by the Ministry of Culture to implement National Knowledge Commission (NKC, 2005) recommendations on library and information sciences development. Objectives To modernize public libraries, create a digital database, enhance library staff competence, and promote equitable library access, especially in backward areas. Structural Mandate Nodal Agency: Raja Rammohun Roy Library Foundation (RRRLF), Kolkata to oversee and coordinate efforts. (It is an autonomous body under the Ministry of Culture.) Key Components:
1. National Virtual Library of India (NVLI): Digital resources, census of libraries, and reading habit studies.
2. Model Libraries: 6 Ministry libraries, 35 state central libraries, 35 district libraries, and 629 district libraries with network connectivity.
3. Library Survey: A survey of 5,000 libraries for infrastructure, resources, and usage data.
4. Capacity Building: Training programs for improving skills and knowledge of library staff.PYQ:
[2015] India’s Traditional Knowledge Digital Library (TKDL) which has a database containing formatted information on more than 2 million medicinal formulations is proving a powerful weapon in country’s fight against erroneous patents. Discuss the pro and cons of making the database available publicly available under open source licensing.
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[pib] National Mission on Cultural Mapping
Why in the News?
The Union Minister for Culture and Tourism has provided details of the National Mission on Cultural Mapping in the Rajya Sabha.
About National Mission on Cultural Mapping (NMCM):
Details - Launched by: Ministry of Culture, Government of India.
- Implemented by: Indira Gandhi National Centre for the Arts (IGNCA).
Aims and Objectives - Document India’s cultural heritage, including art forms, artists, crafts, and performing arts.
- Mapping of 6.5 lakh villages across India; Initial stages will focus on Bihar.
- IT-enabled platform to store and manage cultural data. Web portal and mobile app (Mera Gaon Meri Dharohar).
Mera Gaon Meri Dharohar (MGMD): - Part of NMCM, by the Ministry of Culture and IGNCA.
- Purpose: Documents India’s villages, focusing on culture, history, and traditions.
- 7 Categories: Covers Arts & Crafts, Ecology, Scholastic Traditions, Epics, History, Architecture, and unique features.
Features - Raise awareness about cultural heritage’s role in economic development and national unity.
- Create National Register of Artists and Art Practices.
PYQ:
[2018] Safeguarding the Indian Art Heritage is the need of the moment. Discuss.
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Tiger Conservation Efforts – Project Tiger, etc.
India got its 58th Tiger Reserve
Why in the News?
- Ratapani Wildlife Sanctuary in Madhya Pradesh has become India’s 57th tiger reserve after receiving approval from the Union Ministry of Environment, Forest, and Climate Change.
- Madhav National Park also received approval to be declared a tiger reserve, which will make it India’s 58th tiger reserve after the official notification.
About Ratapani Tiger Reserve and Madhav Tiger Reserve:
Ratapani TR Madhav TR Location - Raisen district, Madhya Pradesh, Vindhya Range, 50 km from Bhopal;
- 824 sq km (318 sq mi) total area.
- Shivpuri district, Madhya Pradesh, near the Madhav National Park;
- 354.85 sq km (137.3 sq mi) total area.
History - Established as Wildlife Sanctuary in 1976.
- Designated as Tiger Reserve on 2 Dec 2024
Flora and Fauna - Biome: Dry and moist deciduous forests, 55% covered with teak.
- Fauna: Tigers, leopards, spotted deer, sloth bear, wild boar, sambar, jackals, wild dogs.
- Water Bodies: Barna Reservoir, Ratapani Dam, seasonal streams.
- Biome: Dry deciduous forests with significant scrub and grasslands.
- Fauna: Tigers, leopards, spotted deer, sloth bear, wild boar, sambar, jackals, wild dogs.
- Water Bodies: Sindh River, Pitakhal Lake, and seasonal streams.
Why and when did the first Tiger Reserve come up in India? - A tiger reserve is a protected area created under the Project Tiger initiative launched in 1973 by the Indian government to protect tigers and their natural habitats.
- A TR is administered by the National Tiger Conservation Authority.
- These reserves are a part of the conservation efforts to ensure the survival of tigers, preserve biodiversity, and maintain ecological balance.
- The first TR in India was the Corbett Tiger Reserve in Uttarakhand, established in 1973. It was also the first national park to be part of the Project Tiger initiative.
- Key Features of a Tiger Reserve:
- Core Area: A core area is designated as a national park or sanctuary, where human activity is restricted to protect the wildlife.
- Buffer Area: Surrounding the core area, the buffer zone consists of a mix of forest and non-forest land, used for controlled human activity while ensuring wildlife conservation. These buffer zones serve as transitional areas for wildlife, providing essential corridors for movement.
PYQ:
[2020] Among the following Tiger Reserves, which one has the largest area under “Critical Tiger Habitat”?
(a) Corbett
(b) Ranthambore
(c) Nagarjunsagar-Srisailam
(d) Sunderbans
- Ratapani Wildlife Sanctuary in Madhya Pradesh has become India’s 57th tiger reserve after receiving approval from the Union Ministry of Environment, Forest, and Climate Change.
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Foreign Policy Watch: India-Africa
India’s strategic focus on West Africa
Why in the News?
Despite China’s increasing involvement in financing and infrastructure development, India continues to hold a significant position as one of Nigeria’s key partners in West Africa.
What are the strategic objectives of India in West Africa?
- Strengthening Bilateral Relations: India aims to enhance its strategic partnership with Nigeria, which is pivotal as Nigeria is both the largest economy and democracy in Africa. This partnership is expected to extend beyond Nigeria, influencing broader regional dynamics in West Africa.
- Focus on Security Cooperation: Given the challenges of terrorism, piracy, and drug trafficking in Nigeria, India seeks to bolster security cooperation. This includes defence collaboration and joint efforts in counterterrorism operations against groups like Boko Haram.
- Development Partnerships: India positions itself as a development partner by providing concessional loans and capacity-building programs, demonstrating a commitment to supporting Nigeria’s socio-economic growth.
- Promotion of Global South Aspirations: Both India and Nigeria share common goals as leaders of the Global South, aiming to amplify their voices in international forums like the UN Security Council.
How does India plan to enhance its economic ties with West African countries?
- Diversifying Trade Relations: India plans to revitalize trade with Nigeria, which has seen a decline recently. Efforts include negotiating trade agreements such as the Economic Cooperation Agreement (ECA) and the Bilateral Investment Treaty (BIT) to facilitate investment and trade.
- Sectoral Collaboration: The focus areas for economic collaboration include defence, energy, technology, health, and education. India’s PM discussions with the President of Nigeria emphasized leveraging India’s expertise in these sectors to foster mutual growth.
- Infrastructure Development: India aims to support infrastructure development through concessional loans and technical assistance, building on existing projects that have benefited from Indian investment.
- Cultural and People-to-People Exchanges: Enhancing cultural ties and promoting exchanges between citizens are also part of India’s strategy to strengthen bilateral relations, fostering goodwill and mutual understanding.
What challenges does India face in its engagement with West Africa?
- Geopolitical Competition: India’s engagement is challenged by China’s significant presence in Nigeria, where Chinese companies dominate various sectors including infrastructure and telecommunications. This competition complicates India’s efforts to establish itself as a key partner.
- Economic Fluctuations: The decline in trade between India and Nigeria from $14.95 billion in 2021-22 to $7.89 billion in 2023-24 highlights vulnerabilities due to shifting global oil markets and increasing imports from other countries like Russia.
- Political Instability: The political landscape in Nigeria can be unpredictable, posing risks for long-term investments and cooperation initiatives that require stability for successful implementation.
- Capacity Constraints: While India offers developmental assistance, the effectiveness of these initiatives can be hindered by local capacity constraints in Nigeria, necessitating a tailored approach that considers local needs and capabilities.
Way forward:
- Deepen Strategic Collaboration: Strengthen defence and security partnerships, diversify trade, and enhance collaboration in sectors like energy, technology, and health to counter China’s growing influence and foster mutual growth.
- Focus on Regional Capacity Building: Expand developmental assistance with tailored initiatives addressing local needs, while supporting Nigeria’s stability through diplomatic engagement and joint Global South aspirations in international forums.
Mains PYQ:
Q Increasing interest of India in Africa has its pros and cons. Critically Examine. (UPSC IAS/2015)
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Make in India: Challenges & Prospects
Why some PLI schemes are in the slow lane?
Why in the News?
Six out of the 14 Production-Linked Incentive (PLI) schemes, including textiles, solar modules, IT hardware, automobiles, advanced chemical cells (ACC), and speciality steel, are progressing at a relatively slower pace.
What are the primary reasons for the slow implementation of PLI schemes?
- Stringent Eligibility Norms: Many industries have reported that the eligibility criteria for participation in PLI schemes are too stringent, which limits the number of companies that can benefit from the incentives.
- Initial Setup Challenges: Establishing a domestic manufacturing base from scratch is a monumental task. Industries such as solar modules and advanced chemistry cells (ACC) require substantial time—ranging from one-and-a-half to three years—to set up manufacturing operations, delaying employment generation.
- Access to Resources: Companies face difficulties in accessing critical resources, including Chinese machinery and skilled technicians, which can hinder their ability to ramp up production quickly.
- Market Dependency: Some sectors remain heavily reliant on imports and have not yet transitioned to a self-sufficient manufacturing model, impacting their growth under the PLI framework.
- Slow Disbursement of Funds: The initial years of the scheme saw minimal disbursement of funds, with only a small percentage of the total incentive outlay being paid out in the first two years.
Which sectors are experiencing the most significant slowdowns, and why?
- Textiles: This sector is struggling due to high competition and stringent norms that have slowed down participation and growth.
- Solar Modules: Despite being a strategic sector for renewable energy, delays in establishing manufacturing capabilities have led to slow progress.
- As of June 2024, India’s solar module manufacturing capacity reached 77.2 GW, but the solar cell capacity was only 7.6 GW, leading to supply shortages that delayed projects.
- Automobiles: While some companies are making progress, the automobile sector overall is hindered by initial setup challenges and fluctuating market conditions.
- Factors such as rising raw material costs and shifts in consumer preferences towards electric vehicles are creating a complex environment for traditional automakers.
- Advanced Chemical Cells (ACC): Similar to solar modules, this sector faces long commissioning periods that delay employment outcomes. Because of the lengthy development timelines for manufacturing facilities and the need for substantial investment in technology are contributing to slower growth in this strategic area.
- IT Hardware: Although recently upgraded with increased funding, it still lags behind in implementation compared to more successful sectors like mobile manufacturing.
What measures can be taken to enhance the effectiveness of PLI schemes? (Way forward)
- Revising Eligibility Criteria: Simplifying the eligibility requirements could encourage more companies, especially smaller firms, to participate in the schemes and benefit from incentives.
- Increasing Support for Supply Chains: Establishing robust supply chains is crucial. The government could provide additional support to smaller suppliers who are essential for scaling up production across sectors.
- Streamlining Resource Access: Facilitating easier access to necessary machinery and skilled labor can help companies ramp up production more effectively and reduce dependency on imports.
- Regular Reviews and Adjustments: Continuous monitoring and adjustments based on sector performance can help identify bottlenecks early and allow for timely interventions.
- Encouraging Ancillary Industries: Promoting the establishment of ancillary industries around larger beneficiaries could create additional jobs and enhance local manufacturing capabilities.
Mains PYQ:
Q Can the strategy of regional-resource-based manufacturing help in promoting employment in India? (UPSC IAS/2019)
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[pib] National Cooperative Policy
Why in the News?
- The Union Minister of Cooperation has provided crucial information regarding India’s National Cooperative Policy to the Lok Sabha.
- The new National Cooperative Policy is almost ready and will be announced in 2-3 months.
Update regarding the New National Cooperative Policy:
Details National Level Committee Formation • A 48-member National Level Committee was formed under the chairmanship of Shri Suresh Prabhakar Prabhu.
• The committee includes experts from the cooperative sector, representatives from National, State, District, and Primary level cooperative societies, and officers from Central Ministries/Departments.
• The task of the committee was to formulate the New National Cooperation Policy for the development of the cooperative sector in India.
• 17 meetings and 4 regional workshops were conducted across the country to finalize the draft report of the policy.Aims and Objectives • Revitalize the cooperative sector and enhance its efficiency at national, state, district, and primary levels.
• Strengthen the cooperative movement in India by creating a structured policy that fosters growth and sustainability.
• Establish financial viability and governance mechanisms for cooperatives.
• Ensure cooperative federalism by allowing state cooperatives to function autonomously, avoiding undue centralization.Features of the Policy • The policy adopts an inclusive approach, including all levels of cooperatives from district to primary.
• Close collaboration with State Governments to promote the cooperative sector and implement cooperative federalism.
• The draft policy was developed after extensive consultations, ensuring broad public and expert participation.Provisions under the Policy • Strengthening Cooperative Structure: Set up District Central Cooperative Banks (DCCBs) and district milk producers’ unions in all uncovered districts. NABARD will prepare an action plan for this.
• Expansion of Multipurpose PACS: New multipurpose PACS, primary dairy/fishery cooperative societies will be established in uncovered Panchayats/villages across India within the next five years.PYQ:
[2011] In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?
(a) Commercial Banks
(b) Cooperative Banks
(c) Regional Rural Banks
(d) Microfinance Institutions
- The Union Minister of Cooperation has provided crucial information regarding India’s National Cooperative Policy to the Lok Sabha.
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