Note4Students
From UPSC perspective, the following things are important :
Prelims level: ITF, OECD
Mains level: Policy measures for cleaner transportation
NITI Aayog in collaboration with International Transport Forum (ITF) is set to launch the “Decarbonising Transport in India” project with the intention to develop a pathway towards a low-carbon transport system for India.
Note the following things about ‘Decarbonising Transport in India (DTI)’ Project:
-
Associated international institution
-
Whether the institution is a UN body or not
-
If India is a member of that body
The DTI Project
- The India project is carried out in the wider context of the International Transport Forum’s “Decarbonising Transport” initiative.
- It is part of the “Decarbonising Transport in Emerging Economies” (DTEE) family of projects, which supports transport decarbonisation across different world regions.
- India, Argentina, Azerbaijan, and Morocco are current participants.
- The DTEE is a collaboration between the ITF and the Wuppertal Institute, supported by the International Climate Initiative (IKI) of the German Federal Ministry for the Environment.
Objectives of the project
- The project will design a tailor-made transport emissions assessment framework for India.
- It will provide the government with a detailed understanding of current and future transport activity and the related CO2 emissions as a basis for their decision-making.
About International Transport Forum (ITF)
- The ITF is an inter-governmental organisation within the OECD (Organisation for Economic Co-operation and Development) system.
- It is the only global body with a mandate for all modes of transport.
- It acts as a think tank for transport policy issues and organises the annual global summit of transport ministers.
- The ITF’s motto is “Global dialogue for better transport”.
- India has been a member of ITF since 2008.
Back2Basics: OCED
- The OECD is an international, intergovernmental economic organization of 36 countries.
- OECD was founded in the year 1961 to stimulate world trade and economic progress.
- OECD originated in 1948, as the Organisation for European Economic Co-operation (OEEC).
- The Organisation for European Economic Co-operation (OEEC) was founded to govern the predominantly US-funded Marshall Plan for post-war reconstruction on the continent.
- The OEEC was instrumental in helping the European Economic Community (EEC). The EEC has evolved into the European Union (EU) to establish a European Free Trade Area.
- India is NOT a member of OECD.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Foldscope
Mains level: NA
Indian researchers have explored and validated the clinical utility of Foldscope in the diagnosis of diseases using various patient samples.
Though trivial, Foldscope is a significant invention with most crucial applications. It somehow offers an alternative to costly microscopes for some basic diagnosis.
What is Foldscope?
- Foldscope is an affordable origami-based microscopy device composed of a series of paper clippings.
- Upon assembly, the device can hold a specimen slide for observation, and this specimen can be viewed via a mobile phone camera attached to it.
How does it work?
- Foldscope can be assembled using paper clips and mounted on a cell phone using coupler and glue drops.
- To do the assessment, a patient sample like urine is smeared on a transparent glass slide and visualized under a Foldscope mounted on a cell phone.
- Sample images can be enlarged using the zoom function of the mobile, which can be stored on the mobile memory card for later reference/patient records.
- Foldscope visualizes calcium oxalate crystals, which are a major cause of kidney stones.
Utility of Foldscope
- Foldscope is particularly convenient to diagnose urinary tract infection (UTI) and monitor kidney stone.
- The study evaluated the use of Foldscope in the clinical diagnosis of oral and urinary tract infections.
- Using this tool, one can easily monitor own-kidney stone status at home with a simple glass-slide, a Foldscope and a phone in hand.
- Such monitoring could perhaps avoid kidney stone reaching a painful state or surgery in recurring cases.
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From UPSC perspective, the following things are important :
Prelims level: Buffer stock limits
Mains level: Paper 3-PDS, food subsidy
At a time when the economy is going through the crisis, anything that could provide revenue to the government will be a real godsend. This article suggests two such areas to tap into. It also examines the effects of recently issued 3 ordinances related to agriculture.
Rs. 1,50,000 crore: Value of excessive grain stock
- There is one area which the government can tap to raise more than Rs 1,00,000 crore.
- As on June 1, FCI had unprecedented grain stocks of 97 million metric tonnes (MMT) in the Central Pool (see Figure).
- Even on July 1, when the procurement of rabi ends, FCI is likely to have grain stocks of about 91-92 MMT.
- This will be against a buffer stock norm of 41.12 MMT that are required for the Public Distribution system (PDS), and some strategic reserves.
- So, compared to this norm, on July 1, FCI will have “excess stocks” of at least 50 MMT.
- Even if one takes a conservative and lower ballpark figure of Rs 30,000/tonne as the combined economic cost of rice and wheat, the value of this “excessive stock”, beyond the buffer norm, is Rs 1,50,000 crore.
- This is unproductive capital locked-up in the Central pool of FCI.
- Unlock this by liquidating “excess stocks” through open market operations.
- It will not recover its full economic cost, as they are much higher than the prevailing market prices, but by not liquidating it.
- But FCI will keep incurring unnecessary interest costs of about Rs 8,000-10,000 crore per annum.
- This is simply not a good food policy.
How will amendment to ECA 1955 will help
- Amendment of the Essential Commodities Act, via the ordinance route, can instil confidence in the private sector for building large scale storage.
- Now, stocking limits will not be imposed on the private sector, except under exceptional circumstances.
- The government, however, delete the clause of “extraordinary price rise”.
- Removing it will lead to private sector building large and modern storage facilities (silos).
- It will propel investments in building more efficient food supply lines.
- The only condition could be to register large storage facilities under the Warehousing Development and Regulatory Authority (WDRA) to know how much stock is there with the private sector, and where.
How will amendment to APMC Act will help
- The ordinance on APMC creates multiple channels for farmers to sell their produce outside the APMC mandi system.
- It also helps towards an unrestricted all India market for agri-produce.
- Of course, it will be resisted by many states that are taking undue advantage of the APMC mandis’ virtual monopoly power.
- But if the central ordinance is implemented in its true spirit, it will be a game-changer.
How will the ordinance on contract farming will help
- It aims to encourage contract farming.
- The basic idea behind this is that farmers’ sowing decisions should be made in view of the expected prices of those crops at the time of harvest.
- It is forward looking and more aligned to the likely demand and supply situation.
- The current practice, where farmers’ sowing decisions are more influenced by last year’s price, often leads to the problem of boom and bust.
- Although honouring an assured price remains a challenge when actual market conditions differ widely at the time of the harvest.
Relook at food subsidy is needed
- In the Union budget of 2020-21, a sum of Rs 1,15,570 crore has been provisioned for food subsidy.
- This number is highly misleading as FCI has been asked to borrow from the National Small Savings Fund (NSSF).
- As on March 31, 2020, borrowings from the NSSF were Rs 2,54,600 crore, on which FCI pays an interest rate of 8.4 to 8.8 per cent per annum.
- So, the real food subsidy bill for 2020-21 amounts to Rs 3,70,170 crore.
- The Economic Survey has suggested- 1) reducing the coverage under PDS; 2) linking issue price to at least half of the procurement price; 3) move gradually towards cash transfers.
- These steps will save a minimum of Rs 50,000 crore annually.
Consider the question “There was a mention of reforms related to agri-sector in the recently announced stimulus package. Examine the issues with segments of agri-sector which necessitated these reforms.”
Conclusion
Liquidating the excess grain stock and rationalising the PDS could provide the government with much needed resources at a time when it needs it the most. Also, reforms in the related to agriculture could remove the stumbling blocks in the way towards the prosperity of farmers.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NPA
Mains level: Paper 3- Issue of bad loans
Steps taken by the government have averted the piling up of the bad loans, though for the time being only. When the moratorium period ends, we will see the spike in the bad loans. This article explains the same.
Why bad loans are expected to increase
- Consumer spending has collapsed over the last few months due to the pandemic.
- Though lately there have been some signs of revival, it will take a while before spending comes anywhere near the pre-covid level.
- This will mean that many businesses will start running out of cash pretty soon if they have not already.
- A company that starts running out of cash will not be in a position to repay its loans and, thus, will ultimately default.
How individuals will be affected
- A recent estimate by rating agency Crisil suggests that about 70% of 40,000 companies have cash to cover employee costs for only two quarters.
- This tells us that companies will fire employees, before, during, or even after defaulting on a loan.
- If companies do not resort to employee retrenchment, they will cut salaries and many already have.
- Past payments and future business with vendors and suppliers will be negatively impacted.
- In this situation, the problem at the company level will impact individuals too.
- When individuals start having a cash flow problem, it will lead to defaults on retail loans
But why we are not seeing the defaults happening already?
- A moratorium is a deferment of repayment to provide temporary relief to borrowers. The loan ultimately needs to be repaid.
- The Reserve Bank of India has let banks and non-banking financial companies (NBFCs) offer a moratorium on loans.
- Hence, until the end of August, borrowers have an option to not repay the loans, without it being considered as a default.
- Hence, any loan defaults will start only after August but they won’t be immediately categorized as a non-performing asset or a bad loan.
- Bad loans are largely those loans that have not been repaid for 90 days or more.
- Hence, defaulted loans will be categorized as bad loans only post-November.
- This will be revealed when banks publish their results for October to December 2020, in January-February 2021.
Conclusion
Even if 20% of loans that end up under a moratorium are defaulted on, the quantum of bad loans, especially those of public sector banks, will go up big time.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- India-China relations and border dispute
While formulating our response to China’s aggressive policies in Ladakh, we should first understand their objectives. This article explains these objective and suggests the steps to deal with China’s policies.
Statements on Aksai Chin and Pakistan
- Statements over Aksai Chin and Pakistan-occupied Kashmir (PoK) by India have painted the image of India as a revanchist power in utter disregard of the country’s capabilities.
- These statements also gave the impression that India precludes any attempt at changing the status quo on either front.
- Though these statements were justifiable in terms of India’s legal rights to these territories, were ill-timed.
How these statements were perceived by China
- They were made when Beijing was feeling alarmed at the Indian government’s decision to separate Ladakh from Jammu and Kashmir.
- The move augmented its perception that it was a prelude to India’s attempt to change the status quo in Aksai Chin.
- India’s assertion of its claims on PoK that in China’s perception threatened the China-Pakistan Economic Corridor project.
China’s 4 strategic objectives
1. India and China are not equals
- China wants India to understand that it is not in the same league as China.
- China resorts to periodic assaults across the Line of Actual Control (LAC) if India tries to assume a position of equality.
2. Keep India away from interfering in Indo-Pacific
- China wants India not to actively oppose Chinese designs to dominate the Indo-Pacific region.
- Also, China wants Indias to refrain from aligning with the U.S. and its allies — Japan and Australia, in particular — in an attempt to contain China.
3. Keeping India preoccupied with problems
- China’s strategy also includes keeping India preoccupied with problems in its immediate neighbourhood.
- So with these problems, India cannot act as an alternative pole of power to China in the broader Asian region.
4. Supporting Pakistan to neutralise India
- As part of the last objective, China supports Pakistan economically and militarily, including the sharing of nuclear weapons designs.
- China uses Pakistan to neutralise India’s conventional power superiority vis-à-vis that country.
An understanding of these objectives is essential to fashioning a realistic Indian response to China’s aggressive policies in Ladakh and elsewhere along the LAC.
But, what about Pakistan?
- Pakistan is at best an irritant for India. (so, focus on China)
- Pakistan can be managed with the use of diplomatic tools, international opprobrium, and superior military force.
- In fact, the Pakistani challenge to India has become magnified because of its nexus with China.
What India should do?
- India’s main strategic goal should be the adoption of carefully calculated policies that neutralise China’s diplomatic and military clout in the Asia-Pacific region.
- While doing so, India should not appear as a surrogate for other powers.
- And India should also ensure that in making alliances it in not sacrificing the autonomy of decision-making in foreign policy.
Consider the question “Understanding of China’s objective is essential to formulate a realistic response to its aggressive policies in Ladakh.” Comment.
Conclusion
Understanding the greater threat posed by China vis-a-vis Pakistan should be the basis of India’s policy towards China.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Rajya Sabha and associated facts
Mains level: Significance of the Rajya Sabha
Another round of Rajya Sabha elections has been completed. There are several features that distinguish elections to the Council of States, or the Upper House of Parliament, from the general elections.
Do you know?
- Only two UTs elect members to the Rajya Sabha, not all.
- Polling is held only if the number of candidates exceeds the number of vacancies.
- Independent members can also be elected etc.
Read this newscard for all such interesting facts which can be directly asked in the prelims.
What is so peculiar about the Rajya Sabha polls?
- A third of MPs in the Rajya Sabha (which is a permanent House and is not subject to dissolution), from each State, retire once in two years and polls are held to fill up the vacancies.
- Only elected members of the State Legislative Assemblies can vote in a Rajya Sabha election.
- The legislators send a batch of new members to the Upper House every two years for a six-year term.
- In addition, vacancies that arise due to resignation, death or disqualification are filled up through by-polls after which those elected serve out the remainder of their predecessors’ term.
Composition of Rajya Sabha
- A bloc of MPs belonging to one or more parties can elect a member of their choice if they have the requisite numbers.
- This is to avoid the principle of majority, which would mean that only candidates put up by ruling parties in the respective States will be elected.
- The Delhi and Puducherry Assemblies elect members to the Rajya Sabha to represent the two UTs.
What is the election process?
- Polling for a Rajya Sabha election will be held only if the number of candidates exceeds the number of vacancies.
- Since the strength of each party in the Assembly is known, it is not difficult to estimate the number of seats a party would win in the Rajya Sabha poll.
- In many states, parties avoid a contest by fielding candidates only in respect to their strength. Where an extra candidate enters the fray, voting becomes necessary.
- Candidates fielded by political parties have to be proposed by at least 10 members of the Assembly or 10% of the party’s strength in the House, whichever is less.
- For independents, there should be 10 proposers, all of whom should be members of the Assembly.
Voting procedure
- Voting is by single transferable vote, as the election is held on the principle of proportional representation.
- A single transferable vote means electors can vote for any number of candidates in order of their preference.
- A candidate requires a specified number of first preference votes to win. Each first choice vote has a value of 100 in the first round.
- To qualify, a candidate needs one point more than the quotient obtained by dividing the total value of the number of seats for which elections are taking place plus one.
Example: If there are four seats and 180 MLAs voting, the qualifying number will be 180/5= 36 votes or value of 3,600.
Why do not the Rajya Sabha polls have a secret ballot?
- The Rajya Sabha polls have a system of the open ballot, but it is a limited form of openness.
- As a measure to check rampant cross-voting, which was taken to mean that the vote had been purchased by corrupt means.
- There is a system of each party MLA showing his or her marked ballots to the party’s authorised agent (called Whip), before they are put into the ballot box.
- Showing a marked ballot to anyone other than one’s own party’s authorised agent will render the vote invalid.
- Not showing the ballot to the authorised agent will also mean that the vote cannot be counted.
- And independent candidates are barred from showing their ballots to anyone.
Is there any NOTA option in voting?
- The ECI issued two circulars, on January 24, 2014, and November 12, 2015, giving Rajya Sabha members the option to press the NOTA button in the Upper House polls.
- However, in 2018, the Supreme Court struck down the provision, holding that the ‘none of the above’ option is only for general elections.
- It cannot be applied to indirect elections based on proportional representation.
Does cross-voting attract disqualification?
- The Supreme Court, while declining to interfere with the open ballot system, ruled that not voting for the party candidate will not attract disqualification under the anti-defection law.
- As voters, MLAs retain their freedom to vote for a candidate of their choice.
- However, the Court observed that since the party would know who voted against its own candidate, it is free to take disciplinary action against the legislator concerned.
Can a legislator vote without taking oath as a member of the Assembly?
- While taking oath as a member is for anyone to function as a legislator, the Supreme Court has ruled that a member can vote in a Rajya Sabha election even before taking oath as a legislator.
- It ruled that voting at the Rajya Sabha polls, being a non-legislative activity, can be performed without taking the oath.
- A person becomes a member as soon as the list of elected members is notified by the ECI, it said.
- Further, a member can also propose a candidate before taking the oath.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: RP Act
Mains level: Secrecy of ballot
- Secrecy of ballot is the cornerstone of free and fair elections. The choice of a voter should be free and the secret ballot system in a democracy ensures it, the Supreme Court has held in judgment.
- The judgment came on an appeal against the Allahabad High Court decision setting aside the voting of a no-confidence motion in a Zila panchayat in Uttar Pradesh in 2018.
Practice question for mains:
Q. Discuss how Secrecy of Ballot is the cornerstone of free and fair elections in India.
What is the Secret Ballot?
- The secret ballot, also known as Australian ballot, is a voting method in which a voter’s choices in an election or a referendum are anonymous.
- It aims for forestalling attempts to influence the voter by intimidation, blackmailing, and potential vote-buying.
- The system is one means of achieving the goal of political privacy.
What did the Supreme Court rule?
- The principle of secrecy of ballots is an important postulate of constitutional democracy, the court said.
- Justice Khanna, who wrote the judgment, referred to Section 94 of the Representation of People Act, which upholds the privilege of the voter to maintain confidentiality about her choice of vote.
- It is the policy of the law to protect the right of voters to the secrecy of the ballot.
- Even a remote or distinct possibility that a voter can be forced to disclose for whom she has voted would act as a positive constraint and a check on the freedom to exercise of the franchise.
Voter’s discretion is allowed
- A voter can also voluntarily waive the privilege of non-disclosure.
- The privilege ends when the voter decides to waive the privilege and instead volunteers to disclose as to whom she had voted.
- No one can prevent a voter from doing. Nor can a complaint be entertained from any, including the person who wants to keep the voter’s mouth sealed as to why she disclosed for whom she voted said the court.
Try this question from our AWE initiaitive:
On what grounds a people’s representative can be disqualified under the representation of people act, 1951? Also, mention the remedies available to such person against his disqualification. (15 marks)
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From UPSC perspective, the following things are important :
Prelims level: MGNREGA, Garib Kalyan Rojgar Abhiyaan
Mains level: Garib Kalyan Rojgar Abhiyaan
PM Modi has launched the Garib Kalyan Rojgar Abhiyaan, an employment scheme for migrant workers.
Practice question for mains:
Q. Discuss the silent success of MGNREGA in COVID-19 times.
Garib Kalyan Rojgar Abhiyaan
- It is a skill-based employment scheme aimed primarily at migrant workers who have returned to their villages to escape the COVID lockdown distress.
- With a 125-workday mandate to create public infrastructure, with the involvement of 11 central departments, the Rs 50,000-crore initiative will focus on job creation.
- It will be implemented in 116 districts in six states — UP, MP, Jharkhand, Odisha, Rajasthan and Bihar — that saw the maximum number of migrant workers returning over the last three months.
Works under the scheme
- The government has identified 25 work areas for employment in villages, for the development of various works.
- These 25 works or projects are related to meet the needs of the villages like rural housing for the poor, Plantations, provision of drinking water through Jal Jeevan mission, Panchayat Bhavans, community toilets, rural mandis, rural roads, other infrastructure like Cattle Sheds, Anganwadi Bhavans etc.
Must read:
[Burning Issue] Reorienting MGNREGA in times of COVID
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ahom Kingdom
Mains level: Not Much
Recently, Assam CM ordered the arrest of a political commentator who had described Chaolung Sukapha as a “Chinese invader”.
Practice question for mains:
Q. Who are the Ahoms? Describe the role of Ahom Kingdom in cultural assimilation of modern-day Assam.
Who was Chaolung Sukapha?
- Sukapha was a 13th-century ruler who founded the Ahom kingdom that ruled Assam for six centuries. Contemporary scholars trace his roots to Burma.
- He reached Brahmaputra valley in Assam from upper Burma in the 13th century with around 9,000 followers.
- Sukapha is said to have left a place called Maulung ( in Yunnan, China ) in AD 1215 with eight nobles and 9,000 men, women and children — mostly men.
- In 1235, Sukapha and his people settled in Charaideo in upper Assam after wandering about for years, defeating those who protested his advance and temporarily staying at different locations.
- It was in Charaideo (in Assam) that Sukapha established his first small principality, sowing the seeds of further expansion of the Ahom kingdom.
Who are the Ahoms today?
- The founders of the Ahom kingdom had their own language and followed their own religion.
- Over the centuries, the Ahoms accepted the Hindu religion and the Assamese language, scholars say.
- The Ahoms embraced the language, religion and rituals of the communities living here — they did not impose theirs on those living here.
- Today, the Ahom community is estimated to number between 4 million and 5 million.
Why is Sukapha important in Assamese culture?
- Sukapha’s significance — especially in today’s Assam — lies in his successful efforts towards the assimilation of different communities and tribes.
- He developed very amicable relationships with the tribal communities living here — especially the Sutias, the Morans and the Kacharis.
- Intermarriage also increased assimilation processes. He is widely referred to as the architect of “Bor Asom” or “greater Assam”.
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From UPSC perspective, the following things are important :
Prelims level: Extreme Helium (EHe) Stars
Mains level: NA
A study by the Indian Institute of Astrophysics (IIA) has detected the presence of singly ionized fluorine for the first time in the atmospheres of hot Extreme Helium Stars.
UPSC may ask a simple statement-based question considering the following points:
If there is the presence of hydrogen, their abundance in universe and how it is different from neutron stars etc.
What are EHe stars?
- An extreme helium star or EHe is a low-mass supergiant that is almost devoid of hydrogen, the most common chemical element of the universe.
- There are 21 of them detected so far in our galaxy.
- The origin and evolution of these Hydrogen deficient objects have been shrouded in mystery.
- Their severe chemical peculiarities challenge the theory of well-accepted stellar evolution as the observed chemical composition of these stars do not match with that predicted for low mass evolved stars.
Why is the study significant?
- Clues to the evolution of extreme helium stars require accurate determinations of their chemical composition, and the peculiarities, if any, become very important.
- Fluorine plays a very crucial role in this regard to determine the actual evolutionary sequence of these hydrogen deficient objects.
- The scientists explored the relationship of hot EHes with the cooler EHes, based on their fluorine abundance and spotted it in the former, thus establishing an evolutionary connection across a wide range of effective temperature.
- This makes a strong case that the main form of these objects involves a merger of a carbon-oxygen (CO) and a Helium (He) white dwarf.
- The detection of enhanced fluorine abundances in the atmospheres of hot EHes solves a decade-old mystery about their formation.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Golden Langur
Mains level: NA
Primatologists have observed that the Gee’s golden langur (Trachypithecus geei) induce stillbirth of babies killed inside the womb of females, besides practising infanticide.
Try this question from CSP 2013:
Q. In which of the following States is lion-tailed macaque found in its natural habitat?
- Tamil Nadu
- Kerala
- Karnataka
- Andhra Pradesh
Select the correct answer using the codes given below.
a) 1, 2 and 3 only
b) 2 only
c) 1, 3 and 4 only
d) 1, 2, 3 and 4
Golden Langurs
IUCN status: Endangered
- It is an Old World monkey found in a small region of western Assam, and in the neighbouring foothills of the Black Mountains of Bhutan.
- Long considered sacred by many Himalayan people, the golden langur was first brought to the attention of the western world by the naturalist E. P. Gee in the 1950s.
- Their habitat lies in the region, south of the Brahmaputra River, on the east by the Manas River, on the west by the Sankosh River, all in Assam, India, and on the north by the Black Mountains of Bhutan
- Chakrashila WLS in Assam is India’s first wildlife sanctuary with golden langur as the primary species.
- They are listed in Appendix I of CITES and Schedule I of Wildlife Protection Act, 1972.
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From UPSC perspective, the following things are important :
Prelims level: Open access charges
Mains level: Paper 3- Power sector
Let us discuss renewable energy. Recently, state governments increased the standard charges on open access renewable projects and incentives were cut back. So, what can be implications of such steps? Read to know…
What open access power user mean?
- Open access allows large users of power – typically those who consume more than 1 MW – to buy power from the open market.
- These open access buyers don’t have to depend on a more expensive grid.
- Through incentives given by state governments, these non-grid avenues of power purchase have been encouraged in renewable energy projects.
Now, state governments increased standard charges on open access renewable energy projects or are cutting back on incentives.
Reason given by state: Tariff competitiveness of wind and solar power has shown a significant improvement.
Implications:
- Credit rating agency ICRA said that with the changes in policy, the viability of open access – against grid-connected energy – is no longer as attractive.
- The open-access charges applicable in case of third party sale of power have also increased highlights the rising regulatory risk for such independent power producers (IPPs).
- Earlier, concessions were available from levy of cross-subsidy surcharge, transmission and wheeling charges as well as favourable banking facilities to promote the renewable sector.
- Now, the power policies in many states have either completely withdrawn or reduced incentives given to open access customers.
Issues for group captive projects
- A group captive scheme is where someone develops a power plant for collective usage of many commercial consumers.
- At present, a power project is considered ‘captive’ if consuming entity or entities consume at least 51% of the power generated and owns at least 26% of the equity.
- The State Electricity Regulatory Commission (SERC) in Maharashtra has recently approved the levy of additional surcharge on group captive projects in renewable sector.
- Group captive consumers were earlier exempt from such levy in Maharashtra.
- Risk of other state following holds.
Challenges
- The viability of power procured under the open access route depends on discount offered by the power producer as compared to the grid tariffs.
- The applicable open access charges across the key states are estimated to vary quite widely from Rs.2.5 per unit to Rs. 5 per unit.
- Open access projects have tenure (5-10 years) of the power purchase agreements (PPAs) under the third-party sale route as against the 25 year-tenure for PPA in case of utility scale projects.
- Net tariff realised for such projects remains exposed to regulatory risk given the likelihood of revision in open access charges by the regulators.
- It is also subject to tightening of energy banking norms being observed by SERCs across the states.
Consider the question “Examine the implications of policy changes adopted by the state with regard to open access charges and phasing out of other incentives to Independent Power Producers (IPPs)”
Conclusion
Move by states could jeopardise many projects and also threaten the progress made towards the adoption of clean energy.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Acts related to workers
Mains level: Paper 3- Migrant workers
Issue of migrant workers caught attention of the nation amid lockdown. This issue has wider implications for the economy. This article highlights need for formulating a program to deal with the migrant labourers’ issue in its entirety.
Issue with many implications: Migrant labour
- Out of the total labour force of 465 million workers, around 91 per cent (422 million) were informal workers in 2017-18.
- The Economic Survey (2017) estimated 139 million seasonal or circular migrants.
- Circular urban migrants perform essential labour and provide services.
- Hence, this issue has implications for livelihoods, agriculture, food security, and safety net policy as well as programme responses.
Existing and proposed legal provision
- There exists The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act of 1979.
- Despite this act, there is no central registry of migrant workers.
- The Occupational Safety, Health and Working Conditions Code of 2019 has been introduced in Parliament.
- This code seeks to promote the welfare of migrant workers and legal protection for their rights.
- The code seeks to merge 13 labour laws, including the Inter-state Migrant Workmen Act, 1979 into a single law.
One nation, one ration card
- “One nation one ration card” addresses the problem of ration-card portability.
- The move would benefit nearly 670 million people and will be completed by March 2021.
Provisions in the package for migrant workers, small farmers, street vendors
- There is a provision of Rs 30,000 crore through NABARD, in addition to the already existing Rs 90,000 crore allocation, for the rabi harvest and post-harvest rabi-related work for small and marginal farmers.
- Further, Rs 2 lakh crore concessional credit will be provided to two crore farmers across the country.
- About Rs 11,000 crore was allocated for the urban poor, which includes the migrant workers, for building shelter homes for the homeless.
- Several government-funded housing projects in major cities would be developed into affordable rental housing complexes on a PPP mode.
Free grains for two months
- The Centre will transfer 8 lakh metric tonnes of grain and 50,000 metric tonnes of chana to state governments.
- Form this stave will provide 5 kg of grain (wheat or rice) per labourer and 1kg of chana per family per month for two months free.
- This is expected to benefit up to eight crore migrant workers.
Program for growth and structural transformation
- Devicing such a program requires a review of national legal, regulatory and institutional concerns in resettlement and rehabilitation of migrant labourers.
- There is a need to adopt a human rights approach to address the socio-legal issues.
- The resolution of contradictions in trade, fiscal, monetary and other policies would also require.
- Following 3 policy changes are urgently required.
- 1)The implementation of the report of the task force on migration (2017).
- 2)Expansion of the outreach of the Integrated Child Development Services– to include migrant women and children.
- 3) Inclusion of migrant children in the annual work plans of Sarva Shiksha Abhiyan.
- Given the environment of uncertain livelihoods it is necessary to strengthen the resilience of the financial system and skill workers.
- The issues and challenges of migrant workers require leveraging information and communication technologies and the JAM trinity.
Consider the question “Migrant workers issue is an issue with many implications. This issue needs to be considered in its entirety to formulate a speedy and effective response. In light of this suggest the required policy changes.”
Conclusion
The debilitating physical effects of the coronavirus necessitate coordinated and concerted efforts by all stakeholders to meet the challenges of the present and the expectations of the future. We shall overcome.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Gig economy
Mains level: Paper 3- Gig economy and issue it faces
3 min
The shockwave that pandemic sent through the economy has been reshaping the global job market. Gig economy would have to accommodate the new entrants. This article underlines the changes in the gig economy after the pandemic. Four areas that need attention are also discussed here.
What constitutes gig economy?
- The word “gig” includes in its current parlance all freelancers, disconnected from the workplace.
- Example: drivers of Uber, delivery boys of Zomato, plumbers and electricians of Urban Clap.
- The gig economy is not confined to low-skilled jobs. Skilled professionals are also part of it.
How pandemic is reshaping the gig economy
- Aviation, hospitality, automobile entertainment and retail are some of the hardest hit sectors.
- The classic gig anchors- Uber and AirBnB, have laid off thousands of people.
- In contrast to this, highly skilled professionals —laid off by employers — are joining the gig bandwagon.
- Surely, job demand will far outstrip supply, at least in the short-term.
What does the future hold?
- A Deloitte report from April notes that Indian organisations are considering to expand the share of gig workers.
- Declining full-time jobs will lead to increased assignment-based hiring.
- For instance, a graphic designer working from home could be in demand with a media house or Netflix may hire AI designer paid by an hour to personalize streaming.
- But, what is missing in picture? The national database is missing.
4 focus areas of gig economy
1. National database: A missing link
- National database of job seekers and job creators can connect firms with qualified candidates.
- A prospective employee would need access to a job database, sorted by skill, geography, duration and emoluments.
- Companies should be able to dip into the data pool of talent, experience, location, qualification and expectation.
- Currently, both data sets are fragmented and stored in silos.
- The government could play the role of a facilitator, in partnership with the private sector.
2. Regulatory protection to gig workforce
- The gig economy increases employee vulnerability.
- This segment of the economy so far has been outside the ambit of regulatory labour policies.
- Social protection like wage protection, health benefits and safety assurance should be made available to gig workers.
- The Karnataka government has considered introducing a new labour legislation focused on the gig economy.
3. Prepare college students for freelancing
- Apart from regular campus placements, the placement cells need to reorient and focus on preparing students for freelancing opportunities.
- For the educated youth, this could be the first step towards entrepreneurship.
4. Gender equality
- Gender is another crucial dimension of the digital labour markets.
- The low enrolment of girls for higher education in science, technology, engineering and math would constrict their opportunity in the gig world.
- Going ahead, this would need greater policy attention to ensure gender parity.
Consider the question “What is the gig economy? Suggest the policy measures to make it more resilient in the present economic context disrupted by the pandemic.”
Conclusion
The government and the private sector would need to collaborate along with academia to build adequate safeguards in the unfolding eco-system.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: India-China trade relations
After the Galwan Valley skirmish, the popular idea resonating in Indian streets is that Indians should boycott Chinese goods and thus “teach China a lesson”.
Practice question for mains:
Q. India’s quest for self-reliance is still a distant dream. Critically comment in light of the popular sentiment against the Chinese imports in India.
There are several reasons why the #Boycott_China is an ill-advised move:
A. Trade deficits are not necessarily bad
- Trade deficits/surpluses are just accounting exercises and having a trade deficit against a country doesn’t make the domestic economy weaker or worse off.
- Example: If one looks at the top 25 countries with whom India trades, it has a trade surplus with the US, the UK and the Netherlands. But this does not make Indian economy better than them.
What does this deficit indicate?
- Both Indian consumers and Chinese producers are gainer through trading.
- One gets the market other cheap price. Thus, both are better off than what they would have been without trade.
So, having a trade deficit is good?
- Of course, running persistent trade deficits across all countries raises two main issues.
- One, availability of foreign exchange reserves to “buy” the imports.
- Today, India has more than $500 billion of forex — good enough to cover imports for 12 months.
- Two, lack of domestic capacity to produce in the most efficient manner.
B. Will hurt the Indian poor the most
- This is because poor are more price-sensitive.
- For instance, if Chinese TVs were replaced by either costlier Indian TVs or less efficient ones, unlike poor, richer Indians may buy the costlier option.
- Similarly, the Chinese products that are in India are already paid for. By banning their sale or avoiding them, Indians will be hurting fellow Indian retailers.
- Again, this would hit poorest retailers more due to inability to cope with the unexpected losses.
C. Will punish Indian producers and exporters
- Several businesses in India import intermediate goods and raw materials, which, in turn, are used to create final goods — both for the domestic Indian market as well as the global market (as Indian exports).
- An overwhelming proportion of Chinese imports are in the form of intermediate goods such as electrical machinery, nuclear reactors, fertilizers, optical and photographic measuring equipment organic chemicals etc.
- Such imports are used to produce final goods which are then either sold in India or exported.
- A blanket ban on Chinese imports will hurt all these businesses at a time when they are already struggling to survive, apart from hitting India’s ability to produce finished goods.
D. Will barely hurt China
- While China accounts for 5% of India’s exports and 14% of India’s imports — in US$ value terms — India’s imports from China are just 3% of China’s total exports.
- More importantly, China’s imports from India are less than 1% of its total imports.
- The point is that if India and China stop trading then — on the face of it — China would lose only 3% of its exports and less than 1% of its imports.
- However, India will lose 5% of its exports and 14% of its imports.
Issues
- On the whole, it is much easier for China to replace India than for India to replace China.
- Ban can also seize Chinese funding to many Indian businesses (the start-ups with billion-dollar valuations).
- In short term, replacing Chinese products with Japan or Germany, will only increase our total trade deficit.
- If on the other hand, we decide to use Indian products, that too would cost us more — albeit just internally.
E. India will lose policy credibility
- It has also been suggested that India should renege on existing contracts with China.
- This can be detrimental for India’s effort to attract foreign investment.
- As one of the first things an investor — especially foreign — tracks is the policy credibility and certainty.
- If policies can be changed overnight or if the government itself reneges on contracts, investor will either not invest or demand higher returns for the increased risk.
F. Raising tariffs is mutually assured destruction
- Many argue that India should just slap higher import duties on Chinese goods or apply prohibitive tariffs on final goods.
- By doing this, firstly India would be violating rules of the World Trade Organization.
- Secondly, it would make China and many others to reciprocate in the same way.
Equating border dispute with trade is no panacea
- The first thing to understand is that turning a border dispute into a trade war is unlikely to solve the border dispute.
- Worse, given India and China’s position in both global trade as well as relative to each other, this trade war will hurt India far more than China.
- Thirdly, these measures will be most poorly timed since the Indian economy is already at its weakest point ever — facing a sharp GDP contraction.
Way forward
- In long term, under the banner of self reliance, India must develop its domestic capabilities and acquire a higher share of global trade by raising its competitiveness.
- But no country is completely self-sufficient and that is why trade is such a fantastic idea.
- It allows countries to specialize in what they can do most efficiently and export that good while importing whatever some other country does more efficiently.
- Need of hour is well thought and balanced approach.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Parliamentary committees and its types
Mains level: Parliamentary committees
Amid the on-going India-China border tension, a Parliamentary Standing Committee report on Sino-India relations post the Doklam standoff has been released. It assumes significance as it is the only detailed report on the border issue that has been made available to the public.
Try this question from our AWE initiative:
Q.2) What are parliamentary committees? How do they ensure legislature’s and executive’s efficiency and accountability? (250 Words)
Report on Sino-Indian relations post Doklam
- Submitted by the Shashi Tharoor-led Standing Committee on External Affairs, the report on Sino-India relations including Doklam throws light on border situation and cooperation in international organisations,
- This Standing Committee report – a bipartisan one as the committee has members from ruling and opposition parties – is one of the very few documents available in which the defence and foreign secretaries.
- It clarified the government’s official position on India-China border issues including the reported transgressions by the Chinese in the region.
- It had cautioned the government that it needed to have “healthy scepticism” while dealing with China.
- The Committee has urged the Government not to let its vigil down in order to prevent any untoward incident in future.
What are the Parliamentary Committees?
- A good deal of Parliamentary business is transacted in the committees. Both Houses of Parliament have a similar committee structure, with a few exceptions.
- Their appointment, terms of office, functions and procedure of conducting business are also more or less similar and are regulated as per rules made by the two Houses under Article 118(1) of the Constitution.
- Broadly, Parliamentary Committees are of two kinds – Standing Committees and ad hoc Committees.
- The former are elected or appointed every year or periodically and their work goes on, more or less, on a continuous basis.
- The latter are appointed on an ad hoc basis as the need arises and they cease to exist as soon as they complete the task assigned to them.
Their significances
- Apart from debates on bills and issues discussed and debated on the floor of the House, more detailed and in-depth discussions take place on issues as well as legislation in the parliamentary standing committees.
- Here, MPs belonging to all major parties put forward their views without much consideration to the political differences they have.
- A considerable amount of legislative work gets done in these smaller units of MPs from both Houses, across political parties.
- Their reports are tabled in both Rajya Sabha and Lok Sabha. The Houses do not hold a specific debate on the report, but it is often referred to during the discussions on the bills and the key issues.
- Committee meetings also provide a forum where members can engage with domain experts as well as senior-most officials of the concerned ministries.
Additional readings: https://knowindia.gov.in/profile/the-union/parliamentary-committees.php
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: FATF
Mains level: Money laundering and terror financing
Indian officials attended the virtual 32nd special Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG) plenary meeting, under the aegis of the FATF.
Practice question for mains:
Q. What is FATF? Discuss its role in combating global financial crimes and terror financing.
What is the FATF?
- FATF is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.
- The FATF Secretariat is housed at the OECD headquarters in Paris.
- It holds three Plenary meetings in the course of each of its 12-month rotating presidencies.
- As of 2019, FATF consisted of 37 member jurisdictions.
- India became an Observer at FATF in 2006. Since then, it had been working towards full-fledged membership. On June 25, 2010, India was taken in as the 34th country member of FATF.
EAG of FATF
- The EAG is a regional body comprising nine countries: India, Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan and Belarus.
- It is an associate member of the FATF.
What is the role of FATF?
- The rise of the global economy and international trade has given rise to financial crimes such as money laundering.
- The FATF makes recommendations for combating financial crime, reviews members’ policies and procedures, and seeks to increase acceptance of anti-money laundering regulations across the globe.
- Because money launderers and others alter their techniques to avoid apprehension, the FATF updates its recommendations every few years.
What is the Black List and the Grey List?
- Black List: The blacklist, now called the “Call for action” was the common shorthand description for the FATF list of “Non-Cooperative Countries or Territories” (NCCTs).
- Grey List: Countries that are considered safe haven for supporting terror funding and money laundering are put in the FATF grey list. This inclusion serves as a warning to the country that it may enter the blacklist.
Consequences of being in the FATF grey list:
- Economic sanctions from IMF, World Bank, ADB
- Problem in getting loans from IMF, World Bank, ADB and other countries
- Reduction in international trade
- International boycott
Pakistan and FATF
- Pakistan, which continues to remain on the “grey list” of FATF, had earlier been given the deadline till the June to ensure compliance with the 27-point action plan against terror funding networks.
- It has been under the FATF’s scanner since June 2018, when it was put on the Grey List for terror financing and money laundering risks.
- FATF and its partners such as the Asia Pacific Group (APG) are reviewing Pakistan’s processes, systems, and weaknesses on the basis of a standard matrix for anti-money laundering (AML) and combating the financing of terrorism (CFT) regime.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: AIIB, ADB
Mains level: Not Much
The Government of India and the Asian Infrastructure Investment Bank (AIIB) has signed a $750 million agreement for “COVID-19 Active Response and Expenditure Support Programme”.
Try this question from CSP 2019
Q.With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements
- AIIB has more than 80 member nations.
- India is the largest shareholder in AIIB.
- AIIB does not have any members from outside Asia.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
What’s so special about this assistance?
- This is the first-ever budgetary support programme from the AIIB to India.
- The project is being financed by the AIIB and Asian Development Bank (ADB) in the amount of $2.250 billion, of which $750 million will be provided by AIIB and $1.5 billion will be provided by ADB.
- The package aims to assist India to strengthen its response to the adverse impacts of the COVID-19 pandemic on poor and vulnerable households.
- The current loan will be the second to India from AIIB under its COVID-19 crisis recovery facility apart from the earlier approved $500 million loans.
- The primary beneficiaries would be families below the poverty line, farmers, healthcare workers, women, women’s SHGs, widows, PWDs, senior citizens, low wage earners etc.
About AIIB
- The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia, began operations in January 2016.
- AIIB has now grown to 102 approved members worldwide.
- AIIB is a brainchild of China. The prime aim of the AIIB is infrastructure development.
- By establishing interconnectivity across Asia through advancement in the construction of infrastructure and other productive services, the AIIB can stimulate growth and economic development in the Asian Region.
Must read:
International Economic Institution’s: ADB, BRICS Bank, AIIB
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Solar Eclipse and related terms, Summer Solstice
Mains level: Not Much
A rare celestial event, an annular solar eclipse popularly called as the ‘ring of fire’ eclipse, will be visible on June 21, 2020 from some parts of Northern India. The first solar eclipse of this year takes place on the summer solstice, which is the longest day in the Northern Hemisphere.
Try this question from CSP 2019:
Q. On 21st June, the Sun
(a) Does not set below the horizon at the Arctic Circle
(b) Does not set below the horizon at Antarctic Circle
(c) Shines vertically overhead at noon on the Equator
(d) Shines vertically overhead at the Tropic of Capricorn
What is the Solar Eclipse?
- A Solar Eclipse happens when the moon while orbiting the Earth comes in between the sun and the Earth, due to which the moon blocks the sun’s light from reaching the Earth, causing an eclipse of the sun or a solar eclipse.
- According to NASA, people who are able to view the total solar eclipse are in the centre of the moon’s shadow as and when it hits the Earth.
- There are three types of eclipses: one is a total solar eclipse, which is visible only from a small area on Earth. A total solar eclipse happens when the sun, moon and Earth are in a direct line.
- The second type of a solar eclipse is a partial solar, in which the shadow of the moon appears on a small part of the sun.
Annular Solar Eclipse
- The third kind is an annular solar eclipse, which happens when the moon is farthest from the Earth, which is why it seems smaller.
- In this type of an eclipse, the moon does not block the sun completely, but looks like a “dark disk on top of a larger sun-coloured disk” forming a “ring of fire”.
- Furthermore, during a solar eclipse, the moon casts two shadows on the Earth; the first one is called the umbra, which gets smaller as it reaches the Earth.
- The second one is called the penumbra, which gets larger as it reaches the Earth.
- According to NASA, people standing in the umbra see a total eclipse and those standing in the penumbra see a partial eclipse.
Why the study of solar eclipse is crucial?
- One of the reasons that NASA studies solar eclipses is to study the top layer of the sun called the corona.
- During an annular eclipse, NASA uses ground and space instruments to view this top layer when the sun’s glare is blocked by the moon.
Back2Basics: Summer Solstice
- The summer solstice occurs when one of the Earth’s poles has its maximum tilt toward the Sun.
- It happens twice yearly, once in each hemisphere (Northern and Southern).
- For that hemisphere, the summer solstice is when the Sun reaches its highest position in the sky and is the day with the longest period of daylight.
- Within the Arctic circle (for the northern hemisphere) or Antarctic circle (for the southern hemisphere), there is continuous daylight around the summer solstice.
- On the summer solstice, Earth’s maximum axial tilt toward the Sun is 23.44°. Likewise, the Sun’s declination from the celestial equator is 23.44°.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Horseshoe Crab
Mains level: NA
Horseshoe crabs face an uncertain future in Odisha, their largest habitat in India, even as the world gets ready to celebrate the first-ever ‘International Horseshoe Crab Day’ on June 20, 2020.
Try this question from CSP 2012:
Q. Which one of the following groups of animals belongs to the category of endangered species?
(a) Great Indian Bustard, Musk Deer, Red Panda and Asiatic Wild Ass
(b) Kashmir Stag, Cheetal, Blue Bull and Great Indian Bustard
(c) Snow Leopard, Swamp Deer, Rhesus Monkey and Saras (Crane)
(d) Lion-tailed Macaque, Blue Bull, Hanuman Langur and Cheetal
Horseshoe Crabs
IUCN status: (Data insufficient for the Indian variant)
- Horseshoe crabs are marine and brackish water arthropods. They are not true crabs, which are crustaceans.
- The crabs are represented by four extant species in the world. Out of the four, two species are distributed along the northeast coast of India.
- Only T gigas species of the horseshoe crab is found along Balasore coast of Odisha.
- The crab was included on September 9, 2009, in the Schedule IV of the Wild (Life) Protection Act, 1972, under which, the catching and killing of a horseshoe crab is an offence.
Their significance
- The horseshoe crab is one of the oldest marine living fossils whose origin date back to 445 million years before the dinosaurs existed.
- One of their ecological functions is to lay millions of eggs on beaches to feed shorebirds, fish and other wildlife.
Threats
- Poachers kill them for their meat that is popularly believed to have aphrodisiac qualities.
- The blood of horseshoe crabs, which is blue in colour, is used for detection of bacterial endotoxins in medical applications.
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